FRANCE'S SYSTEM OF SOCIALIZED MEDICINE HAS A RECORD DEFICIT OF 98 BILLION A WATCHDOG ACCOUNTING PANEL SAID BLAMING RECESSION AND HIGH UNEMPLOYMENT THE HEALTH INSURANCE PROGRAM WHICH GUARANTEES INEXPENSIVE MEDICAL CARE FOR MOST OF FRANCE'S 56 MILLION PEOPLE IS GOING THROUGH THE MOST SERIOUS FINANCIAL CRISIS OF ITS HISTORY AT A TIME WHEN IT IS THE MOST NECESSARY THE COMMISSION SAID THE SYSTEM IS FUNDED BY WORKERS WHO CONTRIBUTE 134 OF THEIR GROSS SALARIES AND COMPANIES WHICH PROVIDE 325 OF EACH SALARIED EMPLOYEE'S GROSS PAY IT ALSO PROVIDES FOR THE SELFEMPLOYED JOBLESS DISABLED AND OTHER GROUPS THE DEFICIT WAS ATTRIBUTED TO AN INCREASE OF 03 IN WORKERS THIS YEAR FAR SHORT OF THE EXPECTED 17 AND TO A 64 JUMP IN SYSTEM OPERATING EXPENSES THAT OUTPACED 23 GROWTH IN CONTRIBUTIONS MEDICAL COSTS IN RECENT YEARS HAVE ESCALATED FASTER THAN WORKERS' PAY DANIEL JOHNSON WAS NAMED LEADER OF QUEBEC'S RULING LIBERAL PARTY AND WILL BECOME PREMIER EARLY NEXT MONTH SUCCEEDING ROBERT BOURASSA WHO IS STEPPING DOWN FOR HEALTH AND FAMILY REASONS MR JOHNSON 48YEAROLD PRESIDENT OF THE CANADIAN PROVINCE'S TREASURY BOARD SINCE 1988 IS CONSIDERED PROBUSINESS AND SUPPORTS A UNITED CANADA QUEBEC MUST HOLD AN ELECTION BY LATE 1994 POLLS SHOW THE LIBERALS TRAILING THE OPPOSITION PARTI QUEBECOIS WHICH ADVOCATES QUEBEC'S SEPARATION FROM CANADA MR JOHNSON'S FATHER WAS QUEBEC PREMIER IN THE 1960S AND HIS BROTHER A FORMER PARTI QUEBECOIS LEADER WAS PREMIER BRIEFLY IN 1985 THAILAND'S CABINET CUT TAXES ON BANKS OPERATING UNDER THE COUNTRY'S OFFSHORE BANKING LAWS AND EASED SOME RELATED RESTRICTIONS THE MOVES WERE PART OF A GOVERNMENT PUSH TO LIBERALIZE THE FINANCIAL SYSTEM A WITHHOLDING TAX ON SOME LOANS TO FOREIGN BANKS FROM PARENT COMPANIES WAS REDUCED TO 10 FROM 15 BANKS WITH BRANCH LICENSES WANTED THE WITHHOLDING TAX ELIMINATED ARGUING THAT HONG KONG AND SINGAPORE DON'T HAVE SUCH LEVIES JORDAN'S GOVERNMENT SENT PARLIAMENT A BILL TO REGULATE PRODUCTION SALE AND CONSUMPTION OF ALCOHOLIC BEVERAGES IN THE PREDOMINANTLY MUSLIM KINGDOM THE MEASURE ALTERING A RARELY APPLIED 1948 LAW THAT VAGUELY DEFINES ALCOHOL CURBS WOULD BAN OUTPUT IMPORTS OR SALES BY MUSLIMS AND IMPOSE STIFF PENALTIES FOR VIOLATIONS BUT IT WOULD LET CHRISTIANS 8 OF JORDAN'S 39 MILLION PEOPLE ENGAGE FREELY IN THE ALCOHOL TRADE THE PROPOSAL CAME TWO YEARS AFTER LAWMAKERS MAINLY MUSLIM FUNDAMENTALISTS SOUGHT AN ALCOHOL BAN WESTERN GERMANY'S HEAVILY SUBSIDIZED AND UNCOMPETITIVE COAL INDUSTRY REELING FROM DECLINING DEMAND FROM A RECESSIONSTUNG STEEL SECTOR BEGAN CONTRACT TALKS THAT WILL EXPLORE CUTTING THE WORKWEEK TO FOUR DAYS WITH OFFSETTING WAGE REDUCTIONS TO AVOID 10000 LAYOFFS BUT THE IG BERHBAU UNION SAID THIS WASN'T A LONGTERM SOLUTION IN THE NEXT TWO YEARS THE INDUSTRY EXPECTS TO DISMISS 22000 OR 24 OF THE MINERS IN THE RUHR VALLEY THIS YEAR 11000 HAVE LOST THEIR JOBS LEAVING 113000 IN THE WESTERN REGION WITH 23 MILLION TONS OF COAL AND COKE IN STORAGE PRODUCTION HAS TUMBLED SUSHI BOY A JAPANESE RESTAURANT COMPANY THAT TRIED TO IMPORT LOWCOST FROZEN SUSHI FROM THE US WAS DECLARED BANKRUPT THE KYODO NEWS AGENCY SAID THE OSAKABASED CHAIN OF 80 RESTAURANTS HAD 389 MILLION IN DEBTS TO CIRCUMVENT JAPAN'S BAN ON RICE IMPORTS NOW PARTLY LIFTED AND EXPENSIVE RICE PRICES SUSHI BOY HAD SHIPPED IN FROZEN SUSHI A COMBINATION OF RAW FISH AND RICE THE GOVERNMENT RULED THAT THE BAN DIDN'T APPLY TO SUSHI BOY IF ITS IMPORTS WERE PROCESSED PRODUCTS WITH MORE THAN 20 FISH BUT SUSHI BOY FINALLY DROPPED THE PROJECT CHINA ISSUED REGULATIONS FOR THREE NEW TAXES TO BE IMPOSED JAN 1 UNDER BROAD ECONOMIC REFORMS THAT ALSO ARE TO INCLUDE TRANSFORMING STATE ENTERPRISES INTO MARKETORIENTED COMPANIES AND MAKING THE CHINESE CURRENCY PARTLY CONVERTIBLE CHINA DOESN'T HAVE UNIVERSAL TAX SCALES RATES ARE SET BY PROVINCE A NEW VALUEADDED TAX ON PRODUCTS SERVICES AND IMPORTED GOODS WAS SET AT 17 A BUSINESS TAX WILL COVER NINE SECTORS WITH THE HIGHEST LEVIES BETWEEN 5 AND 20 ON RECREATION SUCH AS DANCE HALLS AND BOWLING ALLEYS OTHER RATES INCLUDE 3 ON TRANSPORTATION CONSTRUCTION AND TELECOMMUNICATIONS AND 5 ON FINANCIAL AND INSURANCE COMPANIES SERVICE ENTERPRISES AND CONCERNS DEALING IN SALES OF FIXED ASSETS AND INTELLECTUAL PROPERTY RIGHTS NEW CONSUMPTION LEVIES WILL APPLY MAINLY TO LUXURY GOODS SUCH AS 45 ON IMPORTED CIGARETTES 40 ON CIGARS UP TO 25 ON ALCOHOL AND 30 ON COSMETICS HIGHLIGHTING THE VULNERABILITY OF ITALY'S MOSTLY UNGUARDED ART TREASURES BURGLARS STOLE A PAINTING BY THE RENAISSANCE ARTIST PERUGINO FROM A ROME CONVENT AND ONE BY THE 18THCENTURY MASTER TIEPOLO FROM A VENICE CHURCH EACH IS VALUED AT MORE THAN 12 MILLION ABOUT 15000 ARTWORKS ARE STOLEN EACH YEAR IN ITALY ASIAN NATIONS NEED 15 TRILLION OF POWER TRANSPORT TELECOMMUNICATIONS AND WATER PROJECTS IN THE NEXT DECADE AN INTERNATIONAL FINANCE CORP SPECIALIST SAID AT A BANGKOK SEMINAR ON FOREIGN INVESTMENT AND EXPERTISE NEEDED FOR COMPETITIVE DEVELOPMENT 9312150050 931215 FOREIGN EXCHANGE FLIGHT FROM MARK SPARKED BY COMMENTS OF RUSSIAN POLITICIAN DOLLAR ADVANCES BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOME ALARMING COMMENTS BY A RUSSIAN POLITICIAN CAUSED A FLIGHT FROM THE MARK TUESDAY SENDING THE GERMAN CURRENCY LOWER AGAINST THE DOLLAR AND THE SWISS FRANC THE DOLLAR ALSO POSTED GAINS AGAINST THE YEN IN RESPONSE TO THE FIRST DECLINE IN JAPAN'S MONTHLY TRADE SURPLUS IN ALMOST THREE YEARS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17138 MARKS UP FROM 17085 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10935 YEN UP FROM 10895 YEN STERLING WAS TRADING AT 14880 DOWN SLIGHTLY FROM 14895 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10940 YEN AND AT 17153 MARKS MONDAY MOST INVESTORS HAD SHRUGGED OFF NEWS OF A STRONG SHOWING BY COMMUNISTS AND NEOFASCISTS IN WEEKEND ELECTIONS FOR RUSSIA'S PARLIAMENT PREFERRING TO FOCUS ON VOTERS' APPROVAL OF PRESIDENT BORIS YELTSIN'S CONSTITUTION BUT WHEN THE MARKET BEGAN TO LEARN TUESDAY OF THE VIEWS HELD BY THE BIG WINNER OF THE ELECTION SOME PLAYERS LOST THEIR APPETITE FOR INVESTMENTS IN GERMANY AND BEGAN TO MOVE TOWARD TRADITIONAL SAFEHAVEN CURRENCIES SUCH AS THE DOLLAR AND THE SWISS FRANC VLADIMIR ZHIRINOVSKY LEADER OF THE LIBERAL DEMOCRATIC PARTY WAS QUOTED IN AN INTERVIEW WITH A RIGHTWING GERMAN NEWSPAPER PUBLISHED TUESDAY AS FAVORING A NEW VERSION OF THE HITLERSTALIN PACT UNDER WHICH THE SOVIETS AND THE NAZIS GOBBLED UP POLAND UKRAINE AND THE BALTIC STATES AT THE OUTSET OF WORLD WAR II MR ZHIRINOVSKY ALSO WAS QUOTED AS DEMANDING MAJOR CHANGES IN MR YELTSIN'S REFORM PROGRAM AND CALLING FOR THE RESIGNATION OF MAJOR REFORMERS IN THE YELTSIN GOVERNMENT THE BARRAGE OF COMMENTS RAISED THE SPECTER OF POLITICAL TURMOIL ON GERMANY'S DOORSTEP AND SENT MOST EUROPEAN STOCK AND BOND MARKETS LOWER HE CERTAINLY PUT A LITTLE RIPPLE IN THE MARKET NOTED STEVEN FLANAGAN VICE PRESIDENT AT PAINE WEBBER IN NEW YORK THE MARK WAS SOLD OFF AGGRESSIVELY AGAINST ALL CURRENCIES INCLUDING THE DOLLAR ON THE RUSSIAN NEWS SAID SIMON FISCHER ASSOCIATE DIRECTOR AT SWISS BANK CORP IN NEW YORK SOMEWHAT MUTING THE MARKET'S REACTION HOWEVER WAS UNCERTAINTY OVER HOW SERIOUSLY TO TAKE THE COMMENTS DEALERS NOTED THAT WHILE UNOFFICIAL VOTE TALLIES SHOW THAT MR ZHIRINOVSKY'S PARTY WILL BE THE LARGEST IN THE NEW PARLIAMENT WITH ABOUT 25 OF THE VOTE IT STILL FALLS FAR SHORT OF HAVING A MAJORITY AND IN ANY CASE DEALERS NOTED THE NEW RUSSIAN CONSTITUTION GIVES MR YELTSIN THE POWER TO DISSOLVE THE PARLIAMENT IF IT BECOMES UNRULY THAT CAUTION KEPT THE DOLLAR FROM RISING THROUGH RESISTANCE AT AROUND 17180 MARKS DURING TUESDAY'S TRADING DEALERS SAID BUT THEY ADDED THAT THE DOLLAR COULD BE POISED TO BREAK THROUGH THAT LEVEL IN THE DAYS AHEAD AMID GROWING SPECULATION THAT GERMANY'S CENTRAL BANK THE BUNDESBANK WILL LOWER INTEREST RATES THURSDAY MEANWHILE THE DOLLAR MOVED HIGHER AGAINST THE YEN AS A SURPRISING DECLINE IN JAPAN'S NOVEMBER TRADE SURPLUS HELPED THE US CURRENCY PUSH THROUGH HEAVY SALES BY JAPANESE AROUND THE 10920 YEN LEVEL 9312150049 931215 FOREIGN INVESTORS TURN INTO BULLS ON INDIA'S MARKET BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL WHAT A DIFFERENCE ONE YEAR HAS MADE TO BOMBAY LAST YEAR INVESTMENT BANKERS AND FOREIGN FUND MANAGERS WERE SCARED AWAY FROM THE CITY IN INDIA BY COMMUNAL VIOLENCE THIS YEAR THEY COMPLAIN OF CONSTANTLY BUMPING INTO COMPETITORS IN THE BAR AT BOMBAY'S POSHEST BUSINESS HOTEL THE OBEROI LONGTIME FANS OF INDIA'S ECONOMIC REFORMS SAY THE WORLD IS ONLY NOW CATCHING ON TO THE COUNTRY'S STORY EVEN THOUGH THE BOMBAY STOCK EXCHANGE SENSITIVE INDEX OF BLUE CHIPS HAS ALREADY SOARED ABOUT 47 DURING THE PAST SIX MONTHS WHILE FOREIGN INVESTORS FRET ABOUT CORRECTIONS IN OTHER SKYHIGH ASIAN MARKETS THEY'RE SHEDDING CONCERNS THAT INDIA'S ECONOMY WILL BE THE VICTIM OF POLITICAL TURMOIL INDIA'S AMBITIOUS DISMANTLING OF SOCIALISM SEEMS UNSTOPPABLE MANY ANALYSTS SAY CORPORATE EARNINGS ARE REBOUNDING AFTER A BAD YEAR AND INDIANS THEMSELVES ARE LINING UP TO POUR MONEY INTO THEIR STOCK MARKETS MANY FOR THE FIRST TIME THE INDIAN MARKET INCLUDES BOMBAY AS WELL AS SMALLER EXCHANGES PEOPLE LIKE US ARE EXTREMELY BULLISH HERE SAYS HEMENDRA KOTHARI CHAIRMAN OF DSP FINANCIAL CONSULTANTS LTD IN BOMBAY WHICH WORKS WITH MERRILL LYNCH & CO ON INTERNATIONAL OFFERINGS OF INDIAN SECURITIES WHILE BIG US MONEYMANAGEMENT FIRMS HAVE ACCESS TO THE INDIAN STOCK MARKET INDIVIDUAL US INVESTORS ARE LIMITED IN THE WAYS THEY CAN PLAY INDIA THE MAIN VEHICLE FOR INDIVIDUALS INVESTING IN INDIA'S STOCK MARKET THE INDIA FUND IS TRADING ON THE NEW YORK STOCK EXCHANGE AT A SUBSTANTIAL PREMIUM TO THE VALUE OF ITS UNDERLYING ASSETS MAKING IT MORE RISKY THAN A DIRECT INVESTMENT IN INDIAN STOCKS ONE REASON FOR THE SURGING BULLISHNESS IN INDIA IS THAT THE NATION'S MAIN OPPOSITION FORCE THE HINDU NATIONALIST BHARATIYA JANATA PARTY LOST POWER IN THREE STATE ASSEMBLIES LAST MONTH THAT MEANS IT NOW LACKS ENOUGH STRENGTH TO DISRUPT ECONOMIC REFORM BY SUDDENLY FORCING NATIONAL ELECTIONS SAYS AYAZ EBRAHIM AN INVESTMENT MANAGER WITH INDOSUEZ ASIA INVESTMENT SERVICES LTD IN HONG KONG MEANWHILE TALKS BETWEEN INDIA AND PAKISTAN OVER THE FUTURE OF KASHMIR DUE TO BEGIN IN JANUARY MAY HELP REDUCE REGIONAL TENSIONS WITH SUCH TENSIONS ON THE WANE INDIA'S PARLIAMENT IS EXPECTED TO RESUME SOME KEY ECONOMIC DEBATES IN COMING MONTHS AMONG THEM DISCUSSION OF ITS INTERNATIONALTRADE POLICIES REFORMS TO ITS AIRLINE AND PHARMACEUTICALS INDUSTRIES AND THE RESUMPTION OF SALES OF SHARES IN GOVERNMENTOWNED FIRMS TO PRIVATE INVESTORS THE STOCK MARKET IS ALREADY CELEBRATING ALBEIT NOT WITHOUT OCCASIONAL HICCUPS TUESDAY FOR EXAMPLE THERE WAS NO TRADING ON INDIA'S STOCK EXCHANGES BECAUSE OF A BROKER BOYCOTT TO PROTEST A RULES CHANGE BY THE SECURITIES AND EXCHANGE BOARD OF INDIA BUT WITH INDIA'S ECONOMY EMERGING FROM A RECESSION BROKERS AND TRADERS ARE PREDICTING THAT EARNINGS PER SHARE WILL GROW BETWEEN 25 AND 30 DURING THE YEAR AHEAD AND TRADERS ARE CONFIDENT THE STOCK MARKET HAS MUCH FURTHER TO CLIMB REINFORCING THAT BULLISHNESS IS THE ACCELERATING PACE OF STRUCTURAL CHANGES TO INDIA'S STOCK MARKET CHIEF AMONG THEM IS THE WAVE OF LOCAL AND FOREIGN INVESTORS WHO ARE BUYING INDIAN SHARES FOR THE FIRST TIME DURING THE PAST 18 MONTHS FOR INSTANCE PRIVATELY RUN MUTUAL FUNDS HAVE STARTED TO PENETRATE SMALLER TOWNS LOOKING FOR THE MILLIONS OF POTENTIAL INDIAN INVESTORS TRADITIONALLY UNTAPPED BY THE STATEOWNED UNIT TRUST OF INDIA MANAGEMENT COMPANY SAYS MR KOTHARI OF DSP FINANCIAL WITH CORPORATE EARNINGS RISING AND INTEREST RATES GENERALLY FALLING STOCKS LOOK INCREASINGLY ATTRACTIVE TO LOCALS HE SAYS KEMPER CORP THE CHICAGO FINANCIALSERVICES COMPANY SEEMS TO AGREE IT RECENTLY LAUNCHED A JOINTVENTURE FUNDMANAGEMENT COMPANY IN INDIA WITH A PRIVATE INDIAN FUNDMANAGEMENT FIRM THIS MONTH THE JOINT VENTURE IS SELLING SHARES OF AN EQUITY FUND TO LOCAL SMALL INVESTORS SAYS STEPHEN TIMBERS PRESIDENT OF KEMPER KEMPER ALSO WANTS TO JOIN IN THE WAVE OF NEW FOREIGN INVESTORS BUYING INDIAN STOCKS FOR THEMSELVES HE SAYS IN RECENT WEEKS THE MORE THAN 100 FOREIGN INSTITUTIONS AUTHORIZED BY INDIAN REGULATORS TO TRADE LOCAL STOCKS HAVE BEEN POURING ABOUT 25 MILLION INTO BOMBAY'S MARKET EACH DAY SAYS AJIT DAYAL DIRECTOR OF JARDINE FLEMING INDIA SECURITIES PRIVATE LTD MORE APPLICATIONS ARE PENDING THE RULES REQUIRE THAT FOREIGN INVESTORS BE INSTITUTIONS ABLE TO DEMONSTRATE EXPERIENCE IN EMERGING MARKETS BUT THE RECENT RUSH TO INDIA IS ALSO GOOD NEWS TO INVESTORS NOT ALLOWED TO BUY DIRECTLY TO START WITH 10 FUNDS DEDICATED TO INVESTING IN INDIA ARE NOW AVAILABLE OUTSIDE THE COUNTRY SAYS TOM LEVENTHORPE DIRECTOR OF MARLIN PARTNERS A BROKERAGE FIRM IN HONG KONG THAT FOLLOWS INDIAN FUNDS FIVE OF THOSE FUNDS WERE LAUNCHED DURING THE PAST SIX MONTHS ALONE HE POINTS OUT THAT NEW INDIA FUNDS TEND TO BE OPENENDED MEANING THAT NEW SHARES ARE REGULARLY SOLD BY THE FUNDMANAGEMENT COMPANY AT PRICES THAT FLUCTUATE TO REFLECT THE UNDERLYING ASSET VALUE DEMAND FOR THEM HAS BEEN EXTREMELY STRONG HE SAYS BOTH THE NEW YORKBASED INDIA FUND AND A SIMILAR FUND LISTED IN LONDON ARE CLOSEDEND FUNDS WITH A FIXED NUMBER OF SHARES AND BOTH ARE TRADING AT PREMIUMS TO THE NET ASSET VALUES REPRESENTED BY EACH SHARE 9312150048 931215 RETAILING YOU THINK YOUR CHRISTMAS LIST IS LONG TRY SHOPPING FOR 5000 BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JANEY KLEIN IS ONE OF THE FEW PEOPLE ON EARTH WHO ENJOYS ELBOWING THROUGH CROWDS WAITING IN LINES AND PUZZLING OVER THE PERFECT GIFT MRS KLEIN A PERSONAL SHOPPER EARNS A LIVING TACKLING OTHER PEOPLE'S GIFT LISTS THIS CHRISTMAS THROUGH HER 20YEAROLD CONSULTING FIRM CREATIVE RESOURCES INC MRS KLEIN WILL BUY SOME 5000 GIFTS FOR CLIENTS THAT INCLUDE ADVERTISING AGENCIES LAW FIRMS WALL STREET BROKERAGE HOUSES AND AFFLUENT INDIVIDUALS WHILE CHRISTMAS IS HER PEAK SEASON SHE SHOPS YEARROUND FOR CORPORATE EVENTS WEDDINGS BAR MITZVAHS AND FUNERALS MRS KLEIN MARKETS HER ABILITY TO LOCATE ECLECTIC AND ATYPICAL GIFTS THAT TRADITIONAL RETAILERS DON'T CARRY AND ORDINARY SHOPPERS CAN'T FIND SHE BUYS MOSTLY WHOLESALE AT GIFT TRADE SHOWS SHOWROOMS AND BOUTIQUES HIDDEN IN OFFICE BUILDINGS AND BROWNSTONES AROUND MANHATTAN TYPICAL FINDS ANTIQUE TOAST RACKS HANDMADE SIGNED RESIN BOWLS AND SILVER SELTZER SIPHONS FOR PEOPLE WHO ALREADY HAVE EVERYTHING IT'S REAL EASY TO JUST GO OUT AND BUY SOMETHING EXPENSIVE MRS KLEIN SAYS IT'S FAR MORE SATISFYING AND CHALLENGING TO FIND SOMETHING THAT WILL REALLY MAKE AN IMPRESSION ON A RECENT OUTING IN A DESIGNER'S SHOWROOM MRS KLEIN METHODICALLY CULLS A RACK OF HANDMADE SILK THROWS THAT FIT THE BILL IT'S GOTTA TALK IT'S GOTTA TALK TO ME SHE SAYS FINGERING THE FABRIC PROFESSIONAL GIFT SHOPPERS LIKE MRS KLEIN ARE MULTIPLYING GIFT SHOPPING WHICH USED TO FALL UNDER THE HEADING OF WOMEN'S WORK IS SOMETHING MANY TWOCAREER FAMILIES DON'T HAVE TIME TO DO TWO OTHER NEW YORK FIRMS CROSS IT OFF YOUR LIST AND THE INTREPID NEW YORKER CHARGE THEIR CLIENTS 35 AND 60 AN HOUR RESPECTIVELY TO SHOP AND RUN ERRANDS DEPARTMENT STORES WHICH HAVE A TRADITION OF FREE CLOTHESSHOPPING SERVICES ARE NOW PITCHING THEIR EXPERTISE AS GIFT SHOPPERS THIS YEAR SAKS FIFTH AVENUE EXPANDED ITS CORPORATE GIFTSHOPPING SERVICE FROM ITS NEW YORK FLAGSHIP STORE TO ALL 49 OF ITS BRANCHES MRS KLEIN DOESN'T CHARGE AN HOURLY FEE SHE SAYS HER PROFIT VARIES DEPENDING ON THE SPREAD BETWEEN THE COST OF THE GIFT AND THE PRICE SHE CHARGES CLIENTS SHE CLAIMS HER MARKUP OVER WHOLESALE OR TRADE DISCOUNT IS LESS THAN THAT TAKEN BY RETAILERS BUT THAT'S HARD TO VERIFY GIVEN HER UNUSUAL CACHE OF ANTIQUE SILVER BISCUIT BOXES AND PEARLHANDLED FISH KNIVES MY CLIENTS KNOW THE COST OF THINGS AND I BUY WHAT I CONSIDER TO BE A STEAL THAT I CAN RESELL AT A GOOD PRICE SHE SAYS ON RARE OCCASIONS WHEN SHE HAS TO BUY RETAIL SHE ADDS A 20 SERVICE CHARGE SHE VERY SELDOM HAS TO RETURN GIFTS SHE SAYS IN SUCH CASES HER CLIENTS GET A CREDIT TO USE AGAINST FUTURE PURCHASES THIS YEAR MRS KLEIN TURNED DOWN A PROSPECTIVE CORPORATE CLIENT WHO CHALLENGED HER TO COMPETE WITH 10 GIFTS PURCHASED IN BULK THROUGH A BIG JEWELER WHEN THE BUDGT IS SO LOW THAT I CAN'T MAKE MONEY ON THE JOB IT'S NOT WORTH IT SHE SAYS NOR DOES MRS KLEIN ADVERTISE RELYING INSTEAD ON LONGTIME CLIENTS' WORDOFMOUTH SHE'S A TIRELESS BUT RESTRAINED PROMOTER AWARE THAT SOME CLIENTS DON'T CHOOSE TO BROADCAST THAT A STRANGER BUYS THEIR PERSONAL GIFTS IN THIS BUSINESS YOU HAVE TO BE DISCREET SHE SAYS DONNING A WIDEBRIMMED HAT FOR SOME REASON I GET TREATED WITH MORE RESPECT WHEN I'M IN A HAT MRS KLEIN CALLS ON EXECUTIVES IN THEIR OFFICES ASKING THEM ABOUT THEIR NEEDS BUDGET AND THEIR HISTORY OF GIFT GIVING WHILE A FEW CLIENTS HAVE SPECIFIC GIFTS IN MIND MOST DEPEND ON HER CHOICES NEW YORK AUTHOR ELINOR KLEIN NO RELATION DEPENDS ON JANEY KLEIN TO FIND PRESENTS THAT AREN'T IN STORE CATALOGS MAILED TO 50000 HOUSEHOLDS SHE ADDS JANEY WAS DOING PASTA CRATES CONTAINING PASTA SAUCES AND VINEGARS 10 YEARS BEFORE THERE WERE PASTA SHOPS ON EVERY CORNER MRS KLEIN NOW REGARDS PASTA GIFTS AS PASSE ANOTHER LONGTIME CLIENT HOME BOX OFFICE INC CHAIRMAN MICHAEL FUCHS SAYS MRS KLEIN ONCE STEERED HIM TO A ROSEWOODCOVERED COFFEETABLE BOOK TITLED THE AMERICAN EAGLE A PORTION OF THE 1000 PRICE WENT TO RESTORING THE EAGLE POPULATION MRS KLEIN WORKS OUT OF HER LOFT APARTMENT ASSISTED BY TWO EMPLOYEES CLIENTS SOMETIMES DROP BY TO BROWSE THROUGH HER CLOSETSFUL OF TRINKETS SUCH AS SILVER TOAST RACKS WITH GOLF AND TENNIS MOTIFS SHE HAS SCALED BACK HER BUSINESS SINCE THE 1980S WHEN CORPORATE CLIENTS SPLURGED LAVISHLY BACK THEN SHE MAINTAINED A SEPARATE SHOWROOM WITH EIGHT EMPLOYEES SELLING WHOLESALE MERCHANDISE TO SMALL SHOPS WHILE ALSO SHOPPING FOR PRIVATE CLIENTS IN THOSE HEADY DAYS SHE SPENT 250000 ON GIFTS IN A SINGLE YEAR FOR ONE WALL STREET FIRM ANOTHER CLIENT ORDERED A COUPLE OF DOZEN CASHMERE THROWS AT 1000 EACH FOR ITS TOP EXECUTIVES NOW THOSE SAME FIRMS ARE MORE LIKELY TO GIVE CORPORATE DONATIONS TO GROUPS LIKE MEALS ON WHEELS SHE SAYS 9312150047 931215 BUSINESS BRIEF DUPONT CO ELECTRONICS VENTURE IN CHINA IS SET WITH DONGGUAN SOUTH DUPONT CO WILMINGTON DEL SAID ITS DUPONT CHINA HOLDING CO UNIT AND DONGGUAN SOUTH ELECTRONIC CORP FORMED A JOINT VENTURE TO MAKE ELECTRONIC MATERIALS FOR MICROCIRCUITS IN CHINA'S GUANGDONG PROVINCE NEAR HONG KONG THE VENTURE WHICH MARKS THE US CHEMICAL CONCERN'S FIRST ELECTRONICS JOINT VENTURE IN CHINA WILL BE CAPITALIZED AT ABOUT 13 MILLION DUPONT SAID IT WILL PRODUCE THICK FILM MATERIALS USED IN MAKING CIRCUITS AND ELECTRONIC COMPONENTS FOR VARIOUS USES DUPONT WHICH WILL HOLD A 60 STAKE IN THE VENTURE ALREADY MAKES SUCH MATERIALS IN THE US THE UNITED KINGDOM PUERTO RICO AND JAPAN CONSTRUCTION OF THE PLANT WHICH WILL HAVE 50 TO 100 EMPLOYEES IS SCHEDULED TO BEGIN IN THE SECOND QUARTER OF 1994 THE PLANT IS TO BECOME OPERATIONAL IN THE THIRD QUARTER OF 1995 THE VENTURE WILL BE KNOWN AS ELECTRONIC MATERIALS DUPONT DONGGUAN CHINA A COMPANY SPOKESWOMAN SAID 9312150046 931215 LEISURE & ARTS BOOKSHELF STOCKING STUFFERS FOR ARMCHAIR SLEUTHS BY TOM NOLAN THE SCALES TIP HEAVILY TOWARD JOLLITY IN O LITTLE TOWN OF MAGGODY DUTTON 245 PAGES 19 THE SEVENTH BOOK IN JOAN HESS'S SERIES FEATURING FEMALE POLICE CHIEF ARLY HANKS CHIEF HANKS PRESIDES OVER TINY MAGGODY A MERE FLYSPECK ON THE MAP OF ARKANSAS WHEN COUNTRYMUSIC STAR MATT MONTANA DECLARES HIMSELF FOR CAREER PURPOSES A MAGGODY NATIVE GREEDY TOWNSFOLK WORK OVERTIME TO CASH IN ON THE REVELATION MINISTER AND MERCHANT COMPETE TO SUCK BUCKS FROM TOURISTS THE MERCENARY FRENZY CULMINATES IN A DECEMBER VISIT AND CONCERT BY MONTANA AND ENTOURAGE BUT THE YULETIDE BONANZA IS THREATENED BY THE APPEARANCE AND DISAPPEARANCE OF TWO OR THREE CORPSES THE DANGER HERE IS MINIMAL AND THE SATIRE IS THICK AND EQUALOPPORTUNITY TARRING RURAL BUFFOON AND CITY SLICKER ALIKE THESE MAGGODY CHRONICLES MAY BE AN ACQUIRED TASTE BUT THEIR TENACIOUS CHARACTERS DO GROW ON YOU THINGS ARE EVEN COZIER IN ELEANOR BOYLAN'S PUSHING MURDER HOLT 149 PAGES 1995 WHICH HAS THE SERIES HEROINE GRANDMOTHER CLARA GAMADGE MASTERMINDING AN INVESTIGATION FROM HER MANHATTAN HOSPITAL BED THE VILLAIN OF THE PIECE IS ONE DWIGHT DUNLOP A SOCIOPATH RECENTLY MARRIED TO GAMADGE'S MYSTERYBOOKSTOREOWNING FRIEND CAN GAMADGE AIDED BY MANY KITH AND KIN KEEP HERSELF AND HER FRIEND ALIVE AND GET THE GOODS ON THE BAD MAN IN TIME TO BE RELEASED FROM THE HOSPITAL ON CHRISTMAS EVE THE MILD SUSPENSE SHOULD NOT UNDULY DISTURB ANYONE'S HOLIDAY SEVERAL OF THE 21 TALES IN SANTA CLUES SIGNET 272 PAGES 499 AN ANTHOLOGY OF ORIGINAL SHORT STORIES EDITED BY MARTIN H GREENBERG AND CAROLLYNN ROSSEL WAUGH GO TO A DIFFERENT EXTREME HERE ARE GRITTY REPORTS OF ABUSED CHILDREN AND VIGILANTE SANTAS SOUR ENOUGH TO CURDLE ANYONE'S EGGNOG STILL CONTRIBUTIONS BY CHRISTOPHER FAHY DICK LOCHTE AND COLLABORATORS TERRY BEATTY AND WENDI LEE MIX CRIME AND CHRISTMAS IN IMAGINATIVE WINNING WAYS SHERLOCK HOLMES HAD STRONG LINKS TO THE YULE SEASON THE MOST FAMOUS FICTIONAL DETECTIVE EVER MADE HIS DEBUT IN BEETON'S CHRISTMAS ANNUAL OF 1887 AND PLUNGED TO HIS APPARENT DOOM IN THE REICHENBACH FALLS IN A YEAREND ISSUE OF THE STRAND MAGAZINE IN THE ADVENTURE OF THE BLUE CARBUNCLE HOLMES SOLVED AN ESPECIALLY SATISFYING CHRISTMAS PUZZLE ALL OF SIR ARTHUR CONAN DOYLE'S HOLMES STORIES AND NOVELS ARE NEWLY AVAILABLE IN 'THE OXFORD SHERLOCK HOLMES OXFORD UNIVERSITY PRESS NINE VOLUMES FOR 99 ALSO AVAILABLE SEPARATELY A HANDSOME SET EDITED BY OWEN DUDLEY EDWARDS UNLIKE CONAN DOYLE THE INVENTOR OF BRITISH LAWYERSLEUTH HORACE RUMPOLE HAS NOT WEARIED OF HIS POPULAR BRAINCHILD I HAVE NEVER FELT TEMPTED TO PUSH RUMPOLE UNDER A TRAIN AT THE TEMPLE STATION JOHN MORTIMER WRITES REASSURINGLY IN HIS INTRODUCTION TO THE BEST OF RUMPOLE VIKING 275 PAGES 21 A COLLECTION OF SEVEN CASES SELECTED BY THE AUTHOR PRIMARILY COMIC AND DESIGNED TO ENTERTAIN THEY ALSO HAVE SOCIAL POINTS TO MAKE WITH A DISGRUNTLED RUMPOLE PONDERING IN ONE STORY THE ABSURD MONETARY VALUE PLACED ON PERSONS OF THE MOST DOUBTFUL REPUTE KILL A PERSON AND ALL YOU'LL GET IS AN OLD BAILEY JUDGE AND AND OLD BAILEY HACK CAST A WELLDESERVED SLUR ON HIS MORAL CHARACTER AND YOU WILL GET A HIGH COURT JUDGE AND SOME OF THE SMOOTHEST SILKS IN THE BUSINESS OTHER BRITISH WRITERS RUTH RENDELL AND PETER LOVESEY AMONG THEM JOIN A STRONG GATHERING OF AMERICANS INCLUDED IN THE YEAR'S 25 FINEST CRIME AND MYSTERY STORIES SECOND ANNUAL EDITION CARROLL & GRAF 367 PAGES 20 IN LOREN D ESTLEMAN'S THE MAN WHO LOVED NOIR WE FOLLOW DETROIT PRIVATE EYE AMOS WALKER AS HE TRACKS A WANDERING HUSBAND WHO SEEMS TO BE LIVING OUT A '40SFILM FANTASY IT'S AS GOOD AS SARA PARETSKY'S SETTLED SCORES IN WHICH VI WARSHAWSKI UNCOVERS THE FATAL DISCORD AMONG SOME OF HER CHICAGO FRIENDS HOLMES CASTS LONG SHADOWS IN THE OFFBEAT VICTORIAN DETECTIVE STORIES OXFORD PAPERBACKS 578 PAGES 995 WHOSE AUTHORS INCLUDE POE DICKENS WILKIE COLLINS ISRAEL ZANGWILL SAX ROHMER AND OF COURSE CONAN DOYLE LOCKEDROOM MYSTERIES AND METROPOLITAN TREACHERIES DOMINATE THESE PERIOD PIECES IN WHICH THE MOST PUZZLING PROBLEM IS NO MATCH FOR A SUPERIOR INTELLECT BARONESS ORCZY'S OLD MAN IN THE CORNER FOR INSTANCE SOLVES THE FENCHURCH STREET MYSTERY WITHOUT EVER LEAVING HIS CAFE TABLE HOLMES'S VICTORIAN PERIOD IS THE CUTOFF POINT FOR THE MAMMOTH BOOK OF HISTORICAL WHODUNNITS CARROLL & GRAF 522 PAGES 995 WHICH STARTS WITH RIDDLES FROM ANCIENT TIMES THEODORE MATHIESON'S LEONARDO DA VINCI DETECTIVE IMAGINES THE GREATEST MIND IN EUROPE DISCOVERING AND THEN HIDING THE CULPRIT IN A POLITICAL MURDER AT THE FRENCH ROYAL COURT IN A LILLIAN DE LA TORRE TALE ANOTHER CAPACIOUS INTELLECT DR SAM JOHNSON SOLVES A SEALEDROOM CRIME ON THE VERY DAY HE MEETS HIS BOSWELL THEN FOR THOSE WHO DON'T HAVE THE REAL THING THERE'S A REISSUE OF DASHIELL HAMMETT'S PRIVATEEYE CLASSIC THE MALTESE FALCON OTTO PENZLER BOOKS 284 PAGES 35 A STRIKING FACSIMILE OF THE 1930 KNOPF FIRST EDITION WITH A GREEN FALCON EMBOSSED ON THE COVER VIRTUALLY IDENTICAL TO THE ORIGINAL THIS OBJECT IS A MARVELOUS ILLUSION 9312150045 931215 TECHNOLOGY & HEALTH FDA MOVES TO LIMIT MARKETING CLAIMS ABOUT VITAMINS MINERALS AND HERBS BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION IN THE LATEST ROUND IN THE HEALTHSUPPLEMENTS WAR THAT HAS EMBROILED HOLLYWOOD AND CONGRESS IS LIMITING HOW VITAMINS MINERALS AND HERBS MAY BE MARKETED THE 4 BILLION HEALTHSUPPLEMENTS INDUSTRY HOPES TO QUASH THE FDA'S AUTHORITY WHICH TAKES EFFECT TODAY THE INDUSTRY ARGUES THAT THE AGENCY'S ACTION WILL THWART THE DISCUSSION OF POTENTIAL HEALTH BENEFITS OF VITAMINS AND MINERALS AND ULTIMATELY CURB THEIR AVAILABILITY THE INDUSTRY HAS GEARED UP A POTENT CAMPAIGN FLOODING CONGRESS WITH MAIL IT PLANS TO AIR A TELEVISION COMMERCIAL IN WHICH ACTOR MEL GIBSON PORTRAYS A MAN BUSTED BY FDA STORMTROOPERS FOR POSSESSION OF AN ILLEGAL SUBSTANCE HEY GUYS IT'S ONLY VITAMINS HE SAYS BUT THE FDA INSISTS IT IS ONLY TRYING TO DETER FALSE OR UNPROVEN CLAIMS ABOUT HEALTH PRODUCTS THE SPECIFIC RULES WHICH WON'T BE RELEASED UNTIL LATER THIS MONTH AND WON'T TAKE EFFECT UNTIL NEXT SPRING WILL LIMIT COMPANIES TO MAKING CLAIMS ABOUT THEIR PRODUCTS THAT ARE BACKED BY BROAD SCIENTIFIC CONSENSUS ACCORDING TO THE AGENCY ONLY THOSE COMPANIES THAT FLOUT THE RULES WILL HAVE THEIR PRODUCTS SEIZED THE FDA SAID THE SKY WILL NOT FALL AN AGENCY SPOKESMAN SAID YOU CAN STILL GO OUT AND GET YOUR VITAMIN C THE FDA PLANS TO FOCUS FIRST ON PRODUCTS THAT IT BELIEVES MAY BE DANGEROUS THE AGENCY ALSO WILL CAST A SKEPTICAL EYE ON PRODUCTS WITH CLAIMS TO TREAT SERIOUS ILLNESS SUCH AS CANCER AIDS OR HEART DISEASE THOSE QUICK FIXES ARE IRRESISTIBLE TO MANY PEOPLE SAID THE FDA'S DIRECTOR DAVID KESSLER IN A RECENT INTERVIEW DR KESSLER SAID HE WAS PARTICULARLY STRUCK BY THE FINDINGS OF AN FDA REVIEW IN WHICH AGENCY EMPLOYEES WENT TO 129 HEALTHFOOD STORES AND ASKED WHETHER THE STORE COULD RECOMMEND TREATMENT FOR A CERTAIN MALADY 120 STORES IMPROPERLY RECOMMENDED A PRODUCT IN THE PAST THREE YEARS THE FDA HAS TAKEN ACTIONS AGAINST 188 DIETARY SUPPLEMENTS MOST OFTEN SENDING WARNING LETTERS TO THE COMPANIES THAT MADE THE CLAIMS BUT THE FIGHT IS FAR FROM OVER LAST YEAR CONGRESS SLAPPED THE FDA WITH A ONEYEAR MORATORIUM BARRING IT FROM IMPOSING THE VITAMIN RULES THE MORATORIUM EXPIRES TODAY PAVING THE WAY FOR THE FDA RULES BUT THE SENATE LAST MONTH PASSED LEGISLATION TO FURTHER DELAY THE FDA'S RULES THE HOUSE ADJOURNED BEFORE IT COULD TAKE UP A SIMILAR BILL WHICH HAS DOZENS OF SPONSORS IT IS VERY MUCH ALIVE DECLARED A SPOKESMAN FOR THE NATIONAL NUTRITIONAL FOODS ASSOCIATION AN INDUSTRY TRADE ASSOCIATION CURRENTLY THE FDA HAS THE AUTHORITY TO PURSUE UNSUBSTANTIATED CLAIMS ON A CASEBYCASE BASIS AND IT HAS FOR EXAMPLE FDA OFFICIALS SEIZED PRODUCTS FROM THORNE RESEARCH INC A SANDPOINT IDAHO MANUFACTURER OF DIETARY SUPPLEMENTS INCLUDING A CALCIUM PRODUCT MARKETED AS OSTEOCAP THE PRODUCT NAME SAID THE FDA IMPLIED A TREATMENT FOR OSTEOPOROSIS BUT IT IS UNCLEAR WHETHER THE FDA ACTION MADE MUCH DIFFERENCE THORNE CONTINUES TO SELL THE PRODUCTS WE CHANGED THE NAMES SAID COMPANY PRESIDENT AL CZAP OSTEOCAP FOR EXAMPLE BECAME OSCAP MOREOVER SUCH SEIZURES HAVE PROVEN TO BE A PUBLICRELATIONS BONANZA FOR THE INDUSTRY INTENT ON PORTRAYING ITSELF AS VICTIM THE FDA GOT A DOSE OF BAD PUBLICITY IN MAY 1992 WHEN IT RAIDED THE OFFICES OF A KENT WASH PHYSICIAN AND NUTRITIONIST THOUGH AN ASSOCIATE OF THE DOCTOR WAS ULTIMATELY CHARGED WITH SELLING ADULTERATED DRUGS THE RAID PROMPTED A WAVE OF HYSTERIA OF HOW HIS OFFICE WAS VIOLENTLY RAIDED BY DOZENS OF ARMED POLICE AND FDA AGENTS WITH GUNS DRAWN ACCORDING TO ONE POPULAR NUTRITION NEWSLETTER THEIR CAMPAIGN HAS BEEN PREMISED ON TAKING EVENTS LIKE THAT AND DISTORTING THEM TO SOMETHING THEY ARE NOT COMPLAINS MICHAEL TAYLOR FDA DEPUTY COMMISSIONER FOR POLICY IT'S BEEN VERY EFFECTIVE A SHERIFF'S DEPUTY HAD HIS GUN OUT OF HIS HOLSTER WHICH HE SAID WAS ACCORDING TO POLICY 9312150044 931215 CORPORATE FOCUS BURGER KING OVERHAUL INCLUDES REFOCUS ON WHOPPER GRAND MET UNIT SEEKS TO CUT COSTS IMPROVE SERVICE WITH EXTENSIVE REVIEW BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL IT'S BACK TO BASICS AT BURGER KING THE WORLD'S SECONDLARGEST HAMBURGER CHAIN IS UNDERTAKING A BUSINESS REVIEW INTENDED TO CUT COSTS REDUCE STAFF IMPROVE SERVICE CUT ITS MENU OFFERINGS AND REEMPHASIZE ITS BESTKNOWN PRODUCT THE FLAMEBROILED WHOPPER WE WILL TURN THIS ORGANIZATION UPSIDE DOWN AROUND THE WORLD HE SAID YOU WILL FIND US MUCH MORE EFFICIENT AND WE WILL CONTINUE TO INCREASE PROFITS MR ADAMSON VOWED ADDING I WANT TO RUN THIS BUSINESS AT LESS COST ONE CONSEQUENCE WILL BE LAYOFFS HE SAID ALTHOUGH THEIR SCOPE HASN'T YET BEEN DEFINED MR ADAMSON SAID HE HAS BEEN TRAVELING THROUGHOUT THE 7100RESTAURANT SYSTEM ADVISING EMPLOYEES THAT SOME JOB LOSSES ARE INEVITABLE THIS IS FAR MORE THAN JUST HEADCOUNT REDUCTION HE SAID IN AN INTERVIEW THIS IS ABOUT CHANGING THE WAY WE WORK OUR CULTURE AND THE WAY WE FOCUS ON OUR BRAND THE OPERATIONS REVIEW COINCIDES WITH BURGER KING'S SEARCH FOR ANOTHER ADVERTISING AGENCY TO SUCCEED D'ARCY MASIUS BENTON & BOWLES ON THE 100 MILLIONPLUS ACCOUNT WHICH HAS BOUNCED AROUND MADISON AVENUE FOR YEARS WHILE A CHOICE ISN'T LIKELY BEFORE LATE JANUARY MR ADAMSON HINTED BROADLY THAT WHOEVER WINS THE BUSINESS WILL BE ASKED TO REVIVE THE CHAIN'S MEMORABLE 1970S SLOGAN HAVE IT YOUR WAY ABANDONED FOR A STRING OF LESSSUCCESSFUL CAMPAIGNS WHY AREN'T WE SAYING HAVE IT YOUR WAY' THAT'S WHAT THE CONSUMER KNOWS US FOR MR ADAMSON SAID SIMILARLY THE CHAIN'S SIGNATURE WHOPPER HAMBURGER WILL BE FRONT AND CENTER IN ADVERTISEMENTS HE SAID NOTING THAT NO OTHER MAJOR CHAIN FLAMEBROILS ITS BURGERS I WANT TO TAKE FULL ADVANTAGE OF THAT DIFFERENCE MR ADAMSON SAID WE JUST HAVE TO HAMMER IT HOME MR ADAMSON SAID MORE OF THE CHAIN'S 250 MILLION MARKETING BUDGET WILL BE ALLOCATED TO LOCAL FRANCHISEES FOR THEIR DISCRETIONARY USE SOMETHING MCDONALD'S DID SEVERAL YEARS AGO ALSO AS MCDONALD'S WENDY'S INTERNATIONAL INC AND OTHER COMPETITORS HAVE DONE BURGER KING WILL STRESS VALUE IN ITS ADVERTISING AND PRODUCT PRICING BURGER KING ONLY RECENTLY EMBRACED A THREETIER VALUE MENU AFTER MR ADAMSON CONCLUDED THAT CUSTOMERS ARE INCREASINGLY INSISTENT ON GETTING MORE FOR THEIR FASTFOOD MONEY A SPOKESWOMAN FOR LONDONBASED GRAND MET SAID THE REORGANIZATION EFFORTS ARE ABSOLUTELY NOT A PRECURSOR TO PUTTING BURGER KING UP FOR SALE SHE SAID THE REORGANIZATION FOR WHICH THE COMPANY HAS SET ASIDE 30 MILLION IS PART OF A LARGER REVIEW OF VARIOUS GRAND MET UNITS TO MAKE SURE THEY ARE OPERATING IN THE MOST COSTEFFECTIVE WAY THAT REVIEW INCLUDES THE GREEN GIANT VEGETABLES OPERATION AT PILLSBURY CO AND THE COMPANY'S INTERNATIONAL DISTILLERS AND VINTNERS DRINKS UNIT GRAND MET HAS EARMARKED 175 MILLION 263 MILLION TO COVER THE RESTRUCTURINGS THE BURGER KING CHIEF EXECUTIVE A VETERAN RETAILER WHO CAME TO THE CHAIN TWO YEARS AGO FROM THE PHARMACY BUSINESS SAID HE EXPECTS THE COMPANY TO ADD SIGNIFICANTLY MORE RESTAURANTS WORLDWIDE IN THE CURRENT FISCAL YEAR LAST YEAR IT OPENED ABOUT 540 OUTLETS AND MORE THAN HALF WERE IN THE US BY CONTRAST MCDONALD'S THRUST IS OVERSEAS WHERE IT PLANS TO OPEN TWO RESTAURANTS FOR EVERY DOMESTIC ADDITION MR ADAMSON 45 YEARS OLD SUCCEEDS BARRY GIBBONS A PUCKISH ENGLISHMAN ASSIGNED BY GRAND MET TO FIX BURGER KING AFTER IT ACQUIRED THE CHAIN AS PART OF PILLSBURY CO IN 1988 AMONG MR GIBBONS'S FORMIDABLE TASKS WAS TO CLEAN UP BURGER KING'S IMAGE AMONG CUSTOMERS MANY OF WHOM HAD COME TO VIEW IT AS A GRUNGY PLACE MOREOVER FRANCHISEES WERE GENERALLY ANGRY WITH MANAGEMENT IN PART BECAUSE PILLSBURY INTENDED TO USE THE HAMBURGER CONCERN AS A POISON PILL IN ITS TAKEOVER DEFENSES AGAINST GRAND MET WITH THE SPEED OF A DRIVETHROUGH ORDER MR GIBBONS SPIFFED UP SERVICE AND EATING AREAS ADDED A POPULAR KIDS' CLUB AND EXPANDED THE MENU WITH SUCH WINNERS AS A NONFRIED CHICKEN SANDWICH THE BK BROILER HE ALSO INVITED FRANCHISEES TO TAKE PART IN THE DECISIONMAKING AND ADDED AN OMBUDSMAN TO FIELD COMPLAINTS WHILE THE TURNAROUND WAS LARGELY SUCCESSFUL IT ALSO REENERGIZED THE ENTIRE BUSINESS THE COMPETITION LED BY MCDONALD'S PUT A RENEWED EMPHASIS ON SERVICE PRODUCT SELECTION AND VALUE MEANWHILE WENDY'S WHICH HAD SKIRTED FINANCIAL DISASTER CAME ALIVE THROUGH THE AWSHUCKS PERSONA OF FOUNDER DAVE THOMAS AS A RESULT BURGER KING'S MARKET SHARE STALLED IN 1991 IT HAD AN ESTIMATED 166 OF THE 328 BILLION US HAMBURGER MARKET BUT LAST YEAR THAT FIGURE DROPPED TO 162 ACCORDING TO TECHNOMIC INC A CHICAGOBASED RESTAURANT CONSULTING FIRM AT THE SAME TIME MCDONALD'S HELD ITS GROUND WITH 404 OF THE MARKET WHILE WENDY'S GAINED MOVING UP TO 101 LAST YEAR FROM 95 IN 1991 MR ADAMSON ADMITS HE'S ON A HONEYMOON WITH FRANCHISEES WHO HAVEN'T HESITATED TO FLAMEBROIL PREVIOUS CHIEFS BUT HE CONTENDS THAT CHANGES WILL GIVE THE CHAIN NEW IMPETUS AND ITS INDEPENDENT RESTAURANT OPERATORS MORE PROFITS SOME CHANGES ALREADY ARE EVIDENT SOME ITEMS ARE BEING STRIPPED FROM THE MENUINCLUDING NAMEBRAND PRODUCTS SUCH AS PAUL NEWMAN'S SALAD DRESSINGS AND FAMOUS AMOS COOKIES NOT ONLY WEREN'T THEY ADDING MUCH TO SALES BUT WE WERE INTIMIDATING MR ADAMSON SAID WHEN YOU GO UP TO ORDER THERE'S 40 ITEMS THE MORE YOU THROW AT IT THE MENU BOARD THE LESS EFFICIENT YOU GET AND THE QUALITY SUFFERS MR ADAMSON SAID HE INITIATED THE COMPANYWIDE STUDY INVOLVING A DOZEN INHOUSE REPRESENTATIVES WORKING WITH THE BOSTON CONSULTING GROUP AFTER HE DISCOVERED A DISCONNECT BETWEEN OUR MISSION STATEMENT AND OUR ORGANIZATIONAL STRUCTURE WE ARE OVERBUREAUCRATIC AND NOT VERY CLOSE IN DECISIONMAKING TO OUR ULTIMATE CONSUMERS THOSE WHO BUY OUR HAMBURGERS OR OUR FRANCHISEES WHILE ACKNOWLEDGING THAT SOME OF THE ANTICIPATED CHANGES WILL COST FRANCHISEES MONEY UPFRONT THEY WILL NOT GRUMBLE BECAUSE IT'S ABOUT FIXING THE QUALITY OF THE BRAND IS THE BRAND BROKEN THEN HE WAS ASKED NO MR ADAMSON REPLIED IT JUST NEEDED TO BE REPAIRED 9312150042 931215 RETAILING PERSONAL SHOPPERS HIT THE MALLS SO YOU DON'T HAVE TO BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL AT MANY SHOPPING MALLS THERE'S A FEELING IN THE AIR OF PANIC DURING THE HOLIDAYS MALLS CAN MISS OUT ON CUSTOMERS LIKE HOLLY SANTOS A 35YEAROLD BALTIMORE EXECUTIVE WHO CLAIMS SHE DOESN'T HAVE THE TIME OR TEMPERAMENT TO FIGHT THE CROWDS BUT SOME SHOPPING CENTERS ARE TRYING TO ATTRACT PEOPLE LIKE MS SANTOS BY OFFERING PERSONAL SHOPPING SERVICES AND MS SANTOS FOR ONE HAS TAKEN NOTICE LAST CHRISTMAS SHE BEGAN USING THE OWINGS MILLS MALL'S NEW FREE SERVICE PERSONAL SHOPPER JOYCE BAKER ARMED WITH A FAX OF 18 OF MS SANTOS'S FRIENDS AND RELATIVES AND THEIR LIKES DISLIKES AND QUIRKS AND A SPENDING LIMIT MS BAKER MATCHED RECIPIENTS WITH GIFT IDEAS THAT WENT BEYOND THE STANDARD BATHROBEANDSLIPPERS ROUTINE SAYS MS SANTOS AFTER SHE GAVE HER GOAHEAD AND HER CREDIT CARD NUMBER THE MALL KINDLY WRAPPED THE GIFTS GRATIS AND SENT THEM OFF MALL PERSONAL SHOPPERS ARE DIFFERENT FROM THE ONES DEPARTMENT STORES HAVE PROVIDED FOR YEARS BECAUSE THEY CAN ROAM THE ENTIRE MALL NOT JUST ONE STORE ONCE POPULAR SPOTS FOR SOCIALIZING SHOPPING MALLS HAVE LOST SOME OF THEIR CONSUMERS TO DISCOUNTERS STRIP SHOPPING CENTERS AND FACTORY OUTLETS AND THEY'VE LOST THE TIMEPRESSED PROFESSIONAL BABY BOOMERS WITH FAMILIES NEVER HAVE THE MOST COVETED SHOPPERS BEEN SO SHORT OF TIME SAYS RICHARD OUTCALT OF OUTCALT & JOHNSON RETAIL STRATEGISTS IN SEATTLE IN THEIR FIGHT AGAINST CONSUMER FLIGHT SHOPPING MALLS ARE ALSO OFFERING PRICE AND PRIZE INCENTIVES CHILDCARE SERVICES AND GIFT REGISTRIES A SURVEY BY MANAGEMENT HORIZONS A CONSULTING UNIT OF PRICE WATERHOUSE SHOWS THAT THE PERCENTAGE OF US SHOPPERS WHO VISITED REGIONAL SHOPPING MALLS ONCE A MONTH OR MORE DROPPED TO 41 LAST YEAR FROM 52 IN 1988 CONSUMERS SPENT A MONTHLY AVERAGE OF FOUR HOURS AT THE MALLS IN 1990 DOWN FROM 12 HOURS A DECADE EARLIER THIS YEAR SPECIALTY STORES LOCATED IN MALLS HAVE REPORTED SOME OF THE WORST MONTHLY SALES RESULTS IN THE INDUSTRY FORMER MALL REGULARS ARE TURNED OFF BY INCREASED CRIME THE TIME IT TAKES SIMPLY TO MANEUVER AROUND THE MALL AND THE IMPRESSION THAT MALLS DON'T OFFER THE BEST VALUE SAYS CARL STEIDTMANN AN ECONOMIST AT MANAGEMENT HORIZONS CALIFORNIA'S SUNNYVALE TOWN CENTER IN THE HEART OF SILICON VALLEY LAST YEAR STARTED OFFERING A COMPUTERIZED CHRISTMAS REGISTRY TO GIVE BUSY SHOPPERS GIFT IDEAS POSITIONED IN THE CENTER OF THE MALL AND SURROUNDED BY A DISPLAY OF GIFT ITEMS AVAILABLE IN THE MALL THE REGISTRY ALLOWS SHOPPERS TO PUNCH IN THEIR SPENDING LIMIT PLUS THE RECIPIENT'S SEX AND AGE THEY GET BACK 10 TO 15 SUGGESTIONS ALONG WITH THE PRICE AND STORE THAT SELLS THE ITEM AT CINCINNATI'S LARGEST CENTER THE FOREST FAIR MALL CUSTOMERS CAN GET A 10 CERTIFICATE FOR EVERY 100 IN RECEIPTS THEY TURN IN IT'S BILLED AS A 100000 GIVEAWAY THIS APPLIES ONLY TO THE MALL'S 105 SPECIALTY STORES DEPARTMENT STORES HAVE THEIR OWN INCENTIVES IN ADDITION MALL VISITORS CAN REGISTER FOR A DRAWING FOR FOUR AIRLINE TICKETS ANYWHERE IN THE US A 1000 SHOPPING SPREE AND 500 OF MERCHANDISE COMPETITION IS CERTAINLY A KEY ISSUE SAYS JAY BOTSCH FOREST FAIR'S DIRECTOR OF MARKETING BECAUSE THE MALL IS UNDERGOING DISRUPTIVE RENOVATIONS HE SAYS THE MALL NEEDS INCENTIVES TO HELP PUT US ON EQUAL GROUND WITH OUR COMPETITORS AT THE ST LOUIS GALLERIA PARENTS CAN SHOP DURING SLOWER HOURS MONDAY THROUGH THURSDAY EVENINGS AND DROP THEIR KIDS OFF AT THE NEIGHBORHOOD YMCA FOR A SPORTS AND ARTSANDCRAFTS NIGHT A CARD VALIDATED AT THE MALL LETS THEM PICK UP THEIR KIDS WITHOUT PAYING A CHILDSITTING FEE THE RIVAL ST LOUIS CENTRE A 15MINUTE DRIVE AWAY LAUNCHED A PERSONALSHOPPING SERVICE THIS YEAR TO ATTRACT DOWNTOWN OFFICE WORKERS WHO DON'T HAVE TIME TO SHOP WE'RE ALL COMPETING FOR THE SAME CUSTOMER SAYS A MALL SPOKESWOMAN WHEN THE DOWNTOWN PLAZA IN SACRAMENTO CALIF WAS BEING RENOVATED LAST YEAR OFFICIALS WERE AFRAID THE CONSTRUCTION WOULD TURN AWAY BUSINESS SO THEY INITIATED A PERSONALSHOPPING SERVICE THAT ENABLED PEOPLE TO DO ALL THEIR SHOPPING WRAPPING AND DELIVERING WITHOUT LEAVING THEIR DESKS THE FAX MACHINE THAT RECEIVED GIFT LISTS WAS SO BUSY LAST YEAR THAT WE COULDN'T GIVE THE SERVICE UP SAYS MARKETING DIRECTOR MARILYN SLIPE OF COURSE THERE'S LITTLE CHANCE THAT PERSONAL SHOPPERS WILL REPLACE THE REAL SHOPPING EXPERIENCE ANYTIME SOON FOR ONE THING MANY REVELERS STILL LOVE TO SHOP FOR ANOTHER MANY CUSTOMERS ASSUME THE SERVICE WHICH GENERALLY IS FREE WILL BE COSTLY TO COMBAT THAT LONGTIME PERSONAL SHOPPER JEAN DAVIS OF JOSLINS DEPARTMENT STORE IN COLORADO SPRINGS WAS FEATURED IN A TELEVISION COMMERCIAL TO EMPHASIZE THAT I'M HERE FOR EVERYONE THE RESULT AN ELDERLY WOMAN CALLED THE DAY AFTER THE AD'S FIRST RUN TO SAY HONEY I NEED SOME MILK AND MY PRESCRIPTION PICKED UP AT THE DRUGSTORE FOR THE MALLS THAT MISCONCEPTION ACTUALLY IS JUST FINE THEY'RE CONTENT MERELY TO ATTRACT THE NONMALL SHOPPER WHO WANTS TO SPEND BUT DOESN'T HAVE TIME THE DOWNTOWN PLAZA SENDS FAXES AND DIRECTMAIL ADVERTISING ONLY TO AREA BUSINESSES THE MALL HAS JUST ONE DELIVERY VAN AND WE DON'T WANT TO GET A FLEET GOING SAYS MS SLIPE THREE MALLS WITH PERSONAL SHOPPING SERVICES WERE GIVEN 250 TO BUY GIFTS FOR FIVE MEMBERS OF THIS REPORTER'S FAMILY EACH MALL GOT THE SAME DESCRIPTION OF THE RELATIVES THESE ARE THE GIFTS THEY SUGGESTED 9312150041 931215 INTERNATIONAL BRIEF SOUTHERN ELECTRIC UTILITY'S PRETAX PROFIT ROSE IN LATEST SIXMONTH PERIOD SOUTHERN ELECTRIC SAID ITS PRETAX PROFIT FOR THE SIX MONTHS ENDED SEPT 30 SOARED TO 892 MILLION 133 MILLION FROM 153 MILLION A YEAR EARLIER THE BRITISH ELECTRICITY UTILITY SAID HOWEVER THAT ITS PROFIT IN THE LATEST HALF ISN'T STRICTLY COMPARABLE WITH THE YEARAGO PERIOD BECAUSE OF DIFFERENCES IN THE TIMING OF PAYMENTS UNDER NEW COAL CONTRACTS IF THE TIMING HAD BEEN THE SAME IN BOTH HALVES PRETAX PROFIT IN THE YEAREARLIER PERIOD WOULD HAVE BEEN AROUND 77 MILLION FOR A RISE FOR THE LATEST SIX MONTHS OF 16 THE COMPANY'S DIVIDEND WAS BOOSTED 20 TO 67 PENCE A SHARE FROM 56 PENCE A SHARE SOUTHERN ELECTRIC LINKED THE IMPROVEMENT TO REDUCED STAFFING LEVELS BETTER RESULTS FROM ITS SUBSIDIARY AND ASSOCIATED COMPANIES AND LOWER INTEREST CHARGES 9312150040 931215 HOST MARRIOTT SUSPENDS BID TO BUY ITALIAN HOTEL FIRM WASHINGTON HOST MARRIOTT CORP SAID IT SUSPENDED ITS ATTEMPT TO ACQUIRE CIGA SPA BECAUSE THE ITALIAN HOTEL COMPANY REFUSED TO PROVIDE ACCESS TO INFORMATION TO MEET OFFERS FROM COMPETING COMPANIES HOST MARRIOTT EMERGED LAST MONTH AS A COMPETING BIDDER TO FORTE PLC THE UNITED KINGDOM HOTEL GROUP THAT HAS A PRELIMINARY AGREEMENT TO ASSUME CONTROL OF THE ITALIAN LUXURY CHAIN A HOST MARRIOTT SPOKESMAN DECLINED TO COMMENT ON WHETHER HOST WOULD CONTINUE TO PURSUE CIGA SAYING ONLY THAT THE KEY WORD HERE IS THAT WE HAVE 'SUSPENDED' NEGOTIATIONS HOST MARRIOTT OWNS HOTELS AIRPORT AND TOLLROADCONCESSION SERVICES AND SENIORLIVING CENTERS ITS SISTER COMPANY MARRIOTT INTERNATIONAL INC MANAGES HOTELS CIGA EXPANDED QUICKLY IN THE LATE 1980S BUT WAS SOON FACED WITH HEAVY DEBT AND WEAK DEMAND FOR ITS PRICEY ROOMS AND DEFAULTED ON LOANS EARLIER THIS YEAR FORTE HAS AGREED TO CONTRIBUTE 33 MILLION POUNDS 492 MILLION AND CERTAIN OF ITS OWN LUXURY HOTELS VALUED AT ABOUT 125 MILLION POUNDS TO CIGA'S RESTRUCTURING IN RETURN FORTE WOULD TAKE OVER MANAGEMENT OF CIGA'S 35 EUROPEAN HOTELS AND HOLD A 51 INTEREST IN THE COMPANY 9312150039 931215 ALLIANCE PHARMACEUTICAL STOCK SAN DIEGO ALLIANCE PHARMACEUTICAL CORP SAID IT AGREED TO SELL 22 MILLION OF NEWLY ISSUED COMMON SHARES TO ABOUT A DOZEN INSTITUTIONS FOR A TOTAL OF 164 MILLION UNDER TERMS OF THE AGREEMENT THE SHARES WOULD BE SOLD FOR 750 EACH A 10 DISCOUNT TO THE AVERAGE CLOSING PRICE FOR THE 10DAY PERIOD PRIOR TO THE PRICING YESTERDAY ALLIANCE SHARES WERE QUOTED AT 9 UP 50 CENTS IN NASDAQ STOCK MARKET TRADING THE DRUG DEVELOPMENT CONCERN SAID IT WILL HAVE ABOUT 212 MILLION SHARES OUTSTANDING AFTER THE TRANSACTION CLOSES LATER THIS MONTH PROCEEDS WILL BE USED TO STRENGTHEN OUR FINANCIAL POSITION AND PROVIDE US WITH RESOURCES TO CONTINUE THE CLINICAL DEVELOPMENT OF CERTAIN DRUG CANDIDATES THE COMPANY SAID 9312150037 931215 DON'T LOOK NOW LULU BUT THERE GOES THE NEIGHBORHOOD SLEEPER' TRUCKS CARRY GOODS CHATTELS THE KITCHEN SINK AND THE NUCLEAR FAMILY BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL WESTPORT CONN IT'S A TYPICAL EARLY EVENING AT THE FELLABAUM HOUSEHOLD IN THE KITCHEN BRENDA FELLABAUM POPS A HAMBURGER INTO THE MICROWAVE OVEN HER 12YEAROLD DAUGHTER SHELLIE SITS ON HER BED UPSTAIRS NEXT TO TINKERBELL THE FAMILY DOG AND PLAYS GOD IS SO GOOD ON THE ELECTRIC KEYBOARD BUTCH FELLABAUM HUSBAND AND FATHER SINGS ALONG WITH A COUNTRYMUSIC TAPE WHILE HE STEERS HIS FAMILY SNUG IN AN 18WHEELER DOWN INTERSTATE 95 AT 60 MPH THE FELLABAUMS LIVE IN THEIR TRUCK 340 DAYS A YEAR THE TWOYEAROLD PETERBILT IS OUTFITTED WITH A CUSTOM SLEEPER COMPARTMENT THAT STRETCHES 9 FEET 2 INCHES BEHIND THE DRIVER'S SEAT THE FELLABAUMS ENJOY THE CONVENIENCE OF A SHOWER TOILET KITCHEN SINK REFRIGERATOR STEREO NINTENDO TWO TELEVISION SETS AND BEDROOM LOFT FOR SHELLIE THE DOWNSTAIRS BED FOLDS UP INTO A DINETTE THEN FOLDS UP SOME MORE TO GIVE MR FELLABAUM ROOM TO PRACTICE HIS PEDAL STEEL GUITAR LORD WHAT WE DON'T HAVE IN HERE IS THE QUESTION MR FELLABAUM SAYS WE DON'T HAVE A FRONT YARD AND WE DON'T HAVE A SWIMMING POOL MR FELLABAUM IS ONE OF 400 OR MORE TRUCKERS NOW ABLE TO CARRY THE COMFORTS OF HOME ALONG WITH THEM ON THE JOB WITH TRUCKERS SPENDING MORE OF THEIR TIME ON THE ROAD TO MAKE A LIVING AND TAKING THEIR WIVES ALONG TO SHARE THE DRIVING THE NUMBER OF JUMBO SLEEPER CABS HAS BALLOONED FROM PERHAPS ONLY 50 FIVE YEARS AGO THE STRETCH CABS SOME SAY ARE THE TRUCKERS' VERSION OF A RECREATIONAL VEHICLE OR BOAT CABIN TO MAKE MONEY TODAY YOU HAVE TO PUT AN ENORMOUS PART OF YOUR 365 DAYS ON THE ROAD SAYS BETTE GARBER EDITORATLARGE OF TRUCKERS NEWS WHO WRITES THE MONTHLY SLEEPER PEEPER COLUMN TO DO THAT YOU BUY A SLEEPER THAT IS A TOTAL LIVING ENVIRONMENT WHERE YOU CAN SLEEP EAT RELAX AND ENTERTAIN SOME TRUCKERS PAY AS MUCH AS 45000 FOR A SLEEPER COMPARTMENT WITH A SHOWER KITCHEN BEDROOM AND ELECTRIC GENERATOR THAT'S ON TOP OF 70000 OR MORE FOR THE BASIC TRUCK A FEW EQUIP THEIR SLEEPERS WITH COMPUTERS SWIVEL CHAIRS WATER BEDS AND STAINEDGLASS WINDOWS GARY PONS A PRODUCE HAULER FROM DE RIDDER LA BOUGHT A CEILING FAN AT WALMART HAD THE METAL PARTS CHROMEPLATED AND THEN INSTALLED THE REASSEMBLED UNIT IN HIS SLEEPER IT'S SOMETHING DIFFERENT THAT NO ONE ELSE HAS SAYS LISA PONS WHO SHARES THE DRIVING WITH HER HUSBAND THEIR NINEFOOTLONG SLEEPER CAB RIGGED FROM TWO STANDARD SLEEPER BOXES HAS TURQUOISE NEON LIGHTS AMERICAN INDIAN ARTIFACTS DISPLAYED ON THE WALLS AND A HORN FROM A SCRAPPED DIESEL LOCOMOTIVE OWNERS SAY THEIR BIG SLEEPERS ARE A LOT LIKE CAMPERS IN FACT FRANK DETLEFSEN WHO MOVES FURNITURE FOR MAYFLOWER TRANSIT INC SAYS HE AND HIS WIFE CHONG HAVE TAKEN THEIR BIG SLEEPER TRUCK ON VACATION HOOKING IT TO WATER ELECTRIC AND CABLE TV LINES AT RV CAMPGROUNDS IN THE SUMMER HE CARRIES A MOTORCYCLE FOR LOCAL TRANSPORT EVERYONE WANTS TO KNOW HOW WE CAN AFFORD A PIECE OF EQUIPMENT LIKE THAT GIVEN HOW TOUGH THE TRUCKING INDUSTRY IS NOW SAYS MR DETLEFSEN WHOSE MONTHLY PAYMENTS ON HIS TRUCK WITH ITS CUSTOM SLEEPER TOTAL 2400 I TELL THEM WE DON'T SLEEP IN HOTELS ANYMORE HE SAYS WE EAT SLEEP AND SHOWER IN THE TRUCK AND JUST KEEP GOING DOWN THE ROAD CARL AND SHIRLEY ROBERTS WHO DRIVE FOR ATLAS VAN LINES TRAVEL IN ANOTHER WELLEQUIPPED SLEEPER TRUCK THEIR 11FOOT 10INCHLONG SLEEPER COMPARTMENT HAS A SHOWER ROOM A QUEENSIZE BED AND A KITCHEN WITH AN OVEN AND A SINK THE ROBERTSES GET A LOT OF ATTENTION WHEREVER THEY DRIVE THEIR TRUCK CALLED THE WHITE HOUSE WHICH IS ADORNED WITH MURALS OF THE CAPITOL DOME WE APPRECIATE THAT SAYS MR ROBERTS SPEAKING INTO HIS CBRADIO HANDSET TO ACKNOWLEDGE ANOTHER COMPLIMENT FROM A PASSING TRUCKER ON THE CROSS BRONX EXPRESSWAY IN NEW YORK CITY WHEN THE ROBERTSES DROP OFF COMPUTERS AT CALDOR CORP HEADQUARTERS IN NORWALK CONN SECURITY GUARD RICHARD BYXBEE CAN'T BELIEVE HIS EYES ABSOLUTELY INCREDIBLE HE SAYS I'VE SEEN TRUCKS WITH CABS BUT NOT PENTHOUSES THAT'S LIKE LIVING IN THE WALDORF ALL THIS IS A LONG WAY FROM THE EARLY DAYS OF TRUCKING WHEN DRIVERS SLEPT IN BEDROLLS UNDER THEIR RIGS OR IN THE NOSE OF THEIR TRAILERS THE FIRST CAB SLEEPERS WERE CALLED COFFIN SLEEPERS THEY WERE JUST LONG AND WIDE ENOUGH TO GET A BODY IN SAYS ELWIN EASH A VICE PRESIDENT OF INDIANA CUSTOM TRUCKS INC A LAGRANGE IND CUSTOM SLEEPER MAKER THE STRETCHED SLEEPERS HAVE BECOME MORE POPULAR SINCE 1982 WHEN CONGRESS VOTED TO ALLOW LONGER TRACTORTRAILER RIGS MOST OF THE BIG CABS BELONG TO INDEPENDENT TRUCKERS PARTICULARLY THOSE INVOLVED IN HOUSEHOLD MOVING WHICH INVOLVES A LOT OF WAITING AROUND OR HAULING HIGHVALUE ITEMS LIKE ELECTRONIC PARTS ANTIQUES OR MUSEUM PIECES WHICH HELP DEFRAY THE EXTRA COST OF THE CAB TRUCKERS HAVE BEEN NO EXCEPTION TO THE TREND TOWARD TWOINCOME FAMILIES AS SPEED LIMITS AND FREIGHT RATES HAVE FALLEN THE ECONOMIC INCENTIVE TO BRING ALONG A SPOUSE AS A SECOND DRIVER HAS RISEN THAT'S WHERE YOU GET THE REAL NICE UNITS BECAUSE THE WIFE WANTS IT LIKE A HOME SAYS THOMAS NEELY SHOP FOREMAN AT STAR CLASS INC A NEW CASTLE PA SLEEPERCAB BUILDER DOUBLE EAGLE INDUSTRIES INC OF SHIPSHEWANA IND A TRAILBLAZER IN CUSTOM SLEEPERS HAS SOLD THEM EQUIPPED WITH SUNROOFS TANNING LAMPS AND IRONING BOARDS MR EASH SAYS INDIANA CUSTOM HAS BUILT A SLEEPER WITH AN EXERCISE MACHINE AND ANOTHER WITH A CENTRALVACUUM SYSTEM THE AMENITIES HAVE GOTTEN MUCH NICER SAYS KIM MISENAR A PRODUCT MANAGER AT KENWORTH TRUCK CO WHICH IS SELLING A STUDIO SLEEPER COMPLETE WITH SOFA BED AND LARGE WINDOWS THAT'S TRUE FOR THE FELLABAUMS WHO HAUL FOOD COASTTOCOAST WHEN YOU WORK LIKE A DOG YOU WANT THE BEST DOGHOUSE AVAILABLE SAYS MR FELLABAUM 49 YEARS OLD WE BUILT OURSELVES A PRETTY DARN GOOD DOGHOUSE SINCE THEY GOT THEIR BIG SLEEPER TRUCK TWO YEARS AGO THE FELLABAUMS HAVE RACKED UP 460000 MILES DAUGHTER SHELLIE RECEIVES HOME SCHOOLING THROUGH CORRESPONDENCE TAPES FROM A CHRISTIAN SCHOOL IN PENSACOLA FLA STOPS AT THE FELLABAUM TRAILER HOME IN TEXARKANA ARK USUALLY LAST ONLY LONG ENOUGH TO DO THE LAUNDRY ON THE EVENING THE FELLABAUMS RACED THROUGH WESTPORT THEY WERE BOUND TO GLOUCESTER MASS WHERE THEY LOADED FISH FOR THE WEST COAST BIG SLEEPER TRUCKS AREN'T WITHOUT PROBLEMS MARSHA DEAL SAID IT TOOK HER 20 MINUTES TO BACK HER EXTRALONG TRUCK INTO A TIGHT SPOT AT THE NASHVILLE TENN CONVENTION CENTER HER TV CAME LOOSE WHEN SHE HIT A POTHOLE ON THE CROSS BRONX EXPRESSWAY SHELLIE FELLABAUM SAYS SHE WAS IN THE SHOWER WHEN HER DAD HIT THE BRAKES HARD IN CALIFORNIA LAST YEAR THERE WAS WATER EVERYWHERE SHE SAYS STEVE BLUNT AN IOWA TRUCKER SAYS HIS 10FOOTLONG SLEEPER SOMETIMES COSTS HIM BUSINESS IT RUNS A COUPLE OF THOUSAND POUNDS HEAVIER AND WE HAVE TO PICK SLIGHTLY LIGHTER LOADS HE SAYS NEVERTHELESS MR BLUNT SAYS HIS CUSTOM SLEEPER WINS HIM RESPECT FROM NORMALLY IMPATIENT FOURWHEELERS THIS TRUCK IS SO FABULOUS THAT PEOPLE STOP AND STARE HE SAYS THEY WAVE AT YOU THEY THINK YOU ARE A CELEBRITY 9312150036 931215 CREDIT RATINGS NATIONAL MEDICAL ENTERPRISES INC SANTA MONICA CALIF STANDARD & POORS CORP PLACED ITS DOUBLEB RATING ON 390 MILLION OF THE HOSPITAL CHAIN'S SENIOR DEBT ON CREDITWATCH WITH POSITIVE IMPLICATIONS INDICATING THE RATING MAY BE RAISED THE RATINGS AGENCY SAID THE REVIEW WAS TRIGGERED MAINLY BY NATIONAL MEDICAL'S ANNOUNCEMENT MONDAY THAT IT AGREED TO SETTLE FOR ABOUT 90 MILLION ITS REMAINING DISPUTED PSYCHIATRIC CLAIMS WITH INSURANCE COMPANIES THE PACT WITH A GROUP OF 13 INSURANCE COMPANIES FOLLOWS A PRIOR AGREEMENT TO PAY UP TO 125 MILLION TO SETTLE SIMILAR CLAIMS WITH OTHER INSURERS AND THE SETTLEMENT OF 66 TEXAS PSYCHIATRIC PATIENTCARE CASES FOR 15 MILLION THESE DEVELOPMENTS CLARIFY MOST OF THE IMPACT FROM CIVIL LITIGATION THE RATINGS AGENCY SAID A RATING UPGRADE WILL DEPEND UPON THE COMPANY'S ABILITY TO BOLSTER ITS CORE ACUTECARE OPERATIONS ITS ABILITY TO GENERATE FINANCIAL LIQUIDITY FROM ITS NONCORE ASSETS AND THE OUTCOME OF EFFORTS TO RESOLVE A US JUSTICE DEPARTMENT CRIMINAL INVESTIGATION OF CORPORATE PRACTICES S&P SAID 9312150035 931215 REVIEW & OUTLOOK EDITORIAL ON ETHICS ARKANSAS ANXIETIES HOUSE BANKING CHAIRMAN HENRY GONZALEZ IS ONE OF THE MOST INDEPENDENT DEMOCRATS ON CAPITOL HILL BUT WE NOW LEARN THAT EVEN HE WILL NOT PRESS AN INVESTIGATION LIKELY TO EMBARRASS A DEMOCRATIC WHITE HOUSE SO PAST CONGRESSIONAL INVESTIGATIONS IRANCONTRA FOR EXAMPLE OR CHAIRMAN GONZALEZ'S OWN HEARINGS ON THE FAILED S&L WHOSE DIRECTORS INCLUDED A SON OF PRESIDENT BUSH SEEM MORE HYPOCRITICAL THAN EVER THE CURRENT ISSUE INVOLVES ANOTHER FAILED S&L OWNED BY A FORMER BUSINESS PARTNER OF PRESIDENT AND MRS CLINTON ANYONE WHO DOUBTS THAT THERE IS MUCH TO INVESTIGATE SHOULD READ THE LETTER NEARBY BY REP JIM LEACH THE BANKING COMMITTEE'S RANKING REPUBLICAN AND ONE OF THE MOST INDEPENDENT MEMBERS OF HIS PARTY SEE RELATED ARTICLE WILL CONGRESS TOUCH ARKANSAS BANKING WSJ DEC 15 1993 THERE IS A RICH CAST OF CHARACTERS JAMES B MCDOUGAL AND HIS MADISON GUARANTY SAVINGS & LOAN FORMER MUNICIPAL JUDGE DAVID HALE AND HIS CAPITAL MANAGEMENT SERVICES INC A FAILED SMALLBUSINESS INVESTMENT COMPANY WHITEWATER DEVELOPMENT CORP AN OZARK REALESTATE FLING OWNED BY MR MCDOUGAL HIS WIFE AND HILLARY AND BILL CLINTON THE NARROW ISSUE IS SIMPLY PUT WHERE DID THE MONEY GO WHEN TAXPAYERS WERE FORCED TO PICK UP THE TAB FOR THE FAILURE OF MADISON AND CAPITAL MANAGEMENT WERE THESE INSTITUTIONS RUN AS PIGGY BANKS FOR A SELFDEALING CIRCLE IN LITTLE ROCK DID SOME OF THE TAXPAYERS' MONEY GO TO CUT THE LOSS IN WHITEWATER OR TO FUEL BILL'S POLITICAL AMBITIONS WHY WERE STATE AND FEDERAL REGULATORS SLOW TO CURB THE ABUSE THE RESOLUTION TRUST CORP MADE CRIMINAL REFERRALS OF SOME OF THESE ISSUES JUDGE HALE IS CURRENTLY UNDER INDICTMENT FOR FRAUD AND IN ATTEMPTING TO PLEA BARGAIN IS POINTING FINGERS DIRECTLY AT BILL CLINTON MR MCDOUGAL WAS ACQUITTED IN HIS FRAUD TRIAL BUT IS SUBJECT TO NEW INVESTIGATION CLEARLY THE ISSUE NEEDS AN AIRING AFTER EXPRESSING INITIAL SYMPATHY FOR A BIPARTISAN INVESTIGATION REP GONZALEZ REFUSED TO SIGN LETTERS REQUESTING DOCUMENTS FROM FEDERAL REGULATORS THE NARROW ISSUE OF SCANDAL IS ESPECIALLY PERTINENT GIVEN THE BROADER ISSUE OF THE CLINTON ADMINISTRATION PROPOSAL TO UNIFY BANKING REGULATION UNDER A PRESIDENTIAL UMBRELLA ALSO DISCUSSED NEARBY BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SEE RELATED ARTICLE NO SINGLE REGULATOR FOR BANKS WSJ DEC 15 1993 WE'VE BEEN WATCHING THE MADISONCAPITAL MANAGEMENTWHITEWATER STORY WITH AVID INTEREST AS IT'S BEEN REPORTED ELSEWHERE BY NOW WIDELY IF NOT ESPECIALLY LOUDLY BUT WE'VE NOT JOINED THE FRAY EVEN AS SOME OF OUR LEFTWING COMPATRIOTS BRANDED US AS MEAN SCANDALMONGERS WHO DROVE CLINTON AIDE VINCENT FOSTER TO SUICIDE WE'RE TAKEN ABACK BY REP GONZALEZ'S APPARENT SUGGESTION THAT MR FOSTER'S DEATH BESTOWED AN INDULGENCE ON ALL PAST SINS BY HIMSELF AND HIS CLIENTS SO BEFORE GOING ANY FURTHER WITH THE STORY OF MADISON ETC IT IS PERHAPS AN APT MOMENT TO REVIEW OUR EDITORIALS ON MR FOSTER AND THE ROSE LAW FIRM PARTNERS WHAT WERE THEY ALL ABOUT THESE EDITORIALS PRESSED TWO POINTS WHAT WE DARED TO CALL ARKANSAS MORES THAT IS THE HABITS AND ETHICAL STANDARDS THAT PREVAIL IN ARKANSAS GOVERNMENT AND PERMEATE MUCH OF THE STATE'S BUSINESS AND LEGAL COMMUNITY ARKANSAS JUDGES REMEMBER ARE REQUIRED TO SWEAR A LOYALTY OATH TO THE DEMOCRATIC PARTY THE ROSE LAW FIRM'S MOST PROMINENT CLIENT WAS JACKSON STEPHENS'S FINANCIAL EMPIRE PARTS OF WHICH HELPED BRING BCCI TO THE US AND OTHER PARTS OF WHICH PROVIDED KEY FINANCING FOR BILL CLINTON'S PRESIDENTIAL PRIMARIES THE ROSE PARTNERS INCLUDED MR FOSTER HILLARY CLINTON ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL AND ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY III THE SECOND POINT CONCERNED THE ADMINISTRATION OF JUSTICE WOULD ARKANSAS MORES INFECT LAW ENFORCEMENT WE SOMEHOW THOUGHT IT UNTOWARD THAT MR HUBBELL BROKERED A CHANGE IN THE JUSTICE DEPARTMENT POSITION IN AN ONGOING CORRUPTION TRIAL WE LOOKED ASKANCE AS MR KENNEDY CALLED THE FBI INTO THE WHITE HOUSE TRAVEL OFFICE WITH MR FOSTER REPORTING ON HANDLING OF THE SCANDAL TO MRS CLINTON WE RAISED QUESTIONS ABOUT MR FOSTER'S ATTITUDE TOWARD THE FREEDOM OF INFORMATION LAW AND HIS HANDLING OF LITIGATION OVER SECRECY IN MRS CLINTON'S HEALTH TASK FORCE THESE SEEM TO US LEGITIMATE ISSUES THEN AND NOW MORE WHILE NO PROOF IS POSSIBLE WE WOULD LIKE TO THINK THAT OUR WILLINGNESS TO RAISE THEM EARLY AND VIGOROUSLY HAD A REAL IMPACT ON THE JUSTICE SYSTEM AT LEAST DESPITE EARLY REPORTS MASSACHUSETTS JUDGE RICHARD STEARNS AN OXFORD WARPROTEST BUDDY OF THE PRESIDENT WAS NOT APPOINTED TO HEAD THE FBI JUDGE LOUIS FREEH INSTEAD WAS A COMMENDABLE APPOINTMENT WHEN THE CLINTON JUSTICE DEPARTMENT FIRED ALL 32 US ATTORNEYS THE CYNICS THOUGHT IT WAS TO REMOVE JAY STEPHENS FROM HIS SEAT IN THE DISTRICT OF COLUMBIA WHERE HE WAS PURSUING THE HOUSE POST OFFICE SCANDAL INVOLVING HOUSE WAYS AND MEANS CHAIRMAN DANNY ROSTENKOWSKI THE GRAND JURY THAT ORIGINALLY HEARD THE ROSTENKOWSKI EVIDENCE WAS ALLOWED TO EXPIRE AS ITS TERM ENDED BUT EVEN THE CYNICS FAILED TO NOTICE THAT WHEN THE INCUMBENT US ATTORNEY LEFT LITTLE ROCK THE APPOINTMENT WENT TO PAULA CASEY A LONGTIME ASSOCIATE OF BILL AND HILLARY CLINTON AND OTHER ARKANSAS POLS SHE HAS NOW BEEN FORCED TO RECUSE HERSELF FROM MADISON ETC SO HAS ASSOCIATE ATTORNEY GENERAL HUBBELL HE SAYS JANET RENO HAS SENT SOME CAREER TYPES DOWN TO LITTLE ROCK TO POKE AROUND THE REPUBLICAN MINORITY ON THE BANKING COMMITTEE HAS NOW REQUESTED DOCUMENTS FROM THE RESOLUTION TRUST CORP THE OFFICE OF THRIFT SUPERVISION THE SMALL BUSINESS ADMINISTRATION THE ARKANSAS SECURITIES DEPARTMENT AND THE FEDERAL DEPOSIT INSURANCE CORP WE SHALL SEE HOW THEY RESPOND MR HUBBELL IS STILL ENTRENCHED AT JUSTICE AND REP GONZALEZ IS BALKING IN CONGRESS SO LET US BREAK OUR SILENCE ON MADISON ETC TO POINT OUT THAT IT RAISES TWO ISSUES THAT STRIKE US AS FAMILIAR ONE COULD IT BE THAT A SUSPICIOUS SET OF MORES HAS BEEN CARRIED FROM ARKANSAS TO THE WHITE HOUSE AND TWO WILL THE LAW BE ADMINISTERED EQUALLY THE FINAL CHECK IS THE ELECTORATE WE SUPPOSE BUT HOW WILL IT LEARN THE TRUTH 9312150034 931215 POLITICS & POLICY SMOGCONTROL PLAN TO EMPHASIZE ETHANOL BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS DECIDED ON A SMOGCONTROL PLAN THAT WILL SUBSTANTIALLY INCREASE THE USE OF CORNDERIVED ETHANOL IN MOTOR FUEL THE LONGAWAITED DECISION IS A VICTORY FOR FARM STATES WHICH HAVE URGED THE WHITE HOUSE TO FAVOR ETHANOL AND IS LIKELY TO FURTHER BOOST THE FORTUNES OF ARCHERDANIELSMIDLAND CO THE POLITICALLY ACTIVE AGRICULTURE COMPANY THAT DOMINATES THE ETHANOL MARKET THE ENVIRONMENTAL PROTECTION AGENCY IS EXPECTED TO UNVEIL THE PLAN TOMORROW UNDER A PROPOSED EPA RULE 30 OF THE GASOLINE SOLD IN THE EPA'S REFORMULATED GASOLINE PROGRAM SET TO GO INTO EFFECT IN 1995 WOULD HAVE TO BE FROM RENEWABLE SOURCES WHICH ESSENTIALLY MEANS ETHANOL AS A RESULT THE PLAN WOULD ENSURE THAT ROUGHLY 10 OF ALL GASOLINE SOLD IN THE US CONTAINED ETHANOL THE MOVE IS A BLOW TO THE METHANOL INDUSTRY WHICH COMPETES HEADTOHEAD WITH ETHANOL BECAUSE IT'S DERIVED FROM NATURAL GAS METHANOL ISN'T CONSIDERED RENEWABLE ARCO CHEMICAL CO IS THE LARGEST PRODUCER OF METHYL TERTIARY BUTYL ETHER OR MTBE THE METHANOL PRODUCT COMMONLY USED IN REFORMULATED GASOLINE RAYMOND LEWIS PRESIDENT OF THE AMERICAN METHANOL INSTITUTE SAID THAT IF A PORTION OF OUR MARKET SHARE IS ARBITRARILY TAKEN AWAY THAT IS NOT ACCEPTABLE BUT MR LEWIS SAID HE WAS HOPEFUL THAT THE METHANOL INDUSTRY COULD DISSUADE THE EPA FROM EXPANDING ETHANOL'S MARKET SHARE BEFORE IT MAKES THE PROPOSAL FINAL THE PROPOSED REGULATION COULD BOOST PRODUCTION OF ETHANOL AND ITS ETHER DERIVATIVE ETHYL TERTIARY BUTYL ETHER OR ETBE BY AS MUCH AS 60 ACCORDING TO ONE ADMINISTRATION OFFICIAL SEN CHARLES GRASSLEY R IOWA IN A WRITTEN STATEMENT YESTERDAY PROCLAIMED THE DECISION TO BE GOOD NEWS FOR CORN GROWERS AND ETHANOL PRODUCERS IN IOWA ONE QUESTION YET TO BE ANSWERED IS THE COST TO THE TREASURY OF EXPANDING THE ETHANOL MARKET BECAUSE ETHANOL RECEIVES CONSIDERABLY MORE TAX BREAKS THAN MTBE THE EPA HAS CALCULATED THAT ITS PROPOSAL COULD LOWER FEDERAL TAX RECEIPTS BY AS MUCH AS 340 MILLION A YEAR BUT ETHANOL'S PROPONENTS ARGUE THAT THIS WOULD BE OFFSET BY REDUCED AGRICULTURE DEPARTMENT PAYMENTS TO CORN GROWERS THE 1990 CLEAN AIR ACT CREATED THE REFORMULATED GAS PROGRAM TO DECREASE SMOG EMISSIONS FROM AUTOMOBILES UNDER THE PROGRAM SERVICE STATIONS IN THE NATION'S NINE SMOGGIEST CITIES MUST SELL GASOLINE THAT REDUCES EMISSIONS OF BENZENE VOLATILE ORGANIC COMPOUNDS AND TOXICS SUCH AS BUTADIENE TO ACHIEVE THESE REDUCTIONS OIL REFINERS SELLING TO THESE MARKETS MUST MIX THEIR GASOLINE WITH MTBE ETHANOL OR ETBE REGULATIONS TO PUT THESE REQUIREMENTS INTO EFFECT HAVE BEEN IN DISPUTE SINCE 1992 WHEN A PROPOSED RULE NEGOTIATED BY THE EPA WITH THE METHANOL AND ETHANOL INDUSTRIES AND ENVIRONMENTAL GROUPS WAS SET ASIDE BY PRESIDENT BUSH AND REPLACED WITH A PROPOSAL HIGHLY FAVORABLE TO ETHANOL THE MOVE WAS DENOUNCED BY ENVIRONMENTALISTS AS AN ELECTIONYEAR BID FOR FARMSTATE VOTES THE ORIGINAL REGULATION WHICH ESSENTIALLY EVENS THE PLAYING FIELD BETWEEN METHANOL AND ETHANOL IS BEING REVIVED BY THE CLINTON ADMINISTRATION IT WILL BE ISSUED IN FINAL FORM TODAY TO MEET A COURTIMPOSED DEADLINE BUT THE WHITE HOUSE DECIDED TO FOLLOW UP TOMORROW WITH A SECOND PROPOSED REGULATION MANDATING THE 30 MARKET SHARE FOR ETHANOL DURING THE 1992 CAMPAIGN CANDIDATE CLINTON PLEDGED TO HELP CORN GROWERS AND BOOST THE SAGGING ETHANOL MARKET IN THAT ELECTION CYCLE ARCHERDANIELSMIDLAND WHICH HAS TENDED TO FAVOR REPUBLICANS CONTRIBUTED 136500 TO THE DEMOCRATIC PARTY DWAYNE ANDREAS THE COMPANY'S CHAIRMAN GAVE THE PARTY AN ADDITIONAL 51000 SINCE THEN MR ANDREAS HAS VISITED THE CLINTON WHITE HOUSE AND HIS COMPANY PRESSED FOR PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT BUT A WHITE HOUSE OFFICIAL SAID THE ADMINISTRATION DECIDED TO BOOST ETHANOL BECAUSE IT WOULD CREATE MORE COMPETITION IN THE PROSPECTIVE REFORMULATED GASOLINE MARKET WHERE METHANOL CURRENTLY HAS THE EDGE AND BECAUSE ETHANOL IS DERIVED FROM A RENEWABLE DOMESTIC SOURCE 9312150033 931215 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 350 MILLION OF DEBENTURES DUE DEC 29 2003 PRICED AT PAR TO YIELD 641 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR TWO YEARS WAS PRICED AT A SPREAD OF 66 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY NATIONSBANC CAPITAL MARKETS INC FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF BONDS DUE DEC 22 1998 PRICED AT PAR TO YIELD 54 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR ONE YEAR WAS PRICED AT A SPREAD OF 26 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GTE FLORIDA INC 400 MILLION OF DEBENTURES IN TWO PARTS PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 200 MILLION OF DEBENTURES DUE DEC 15 2002 WAS PRICED AT PAR TO YIELD 631 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 200 MILLION OF DEBENTURES DUE DEC 15 2023 WAS PRICED AT PAR TO YIELD 741 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP GTE FLORIDA IS A UNIT OF GTE CORP REPUBLIC ENGINEERED STEELS INC 200 MILLION OF FIRSTMORTGAGE NOTES DUE DEC 15 2001 PRICED AT PAR TO YIELD 9875 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC SOUTHERN NEW ENGLAND TELEPHONE CO 445 MILLION OF NOTES IN TWO PARTS PRICED BY UNDERWRITERS LED BY LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 200 MILLION OF MEDIUMTERM NOTES DUE DEC 15 2003 WAS PRICED AS 6125S AT 9916 TO YIELD 6239 THE NOTES NONCALLABLE WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 245 MILLION OF MEDIUMTERM NOTES DUE DEC 15 2033 WAS PRICED AS 725S AT 993 TO YIELD 7304 THE NOTES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P SOUTHERN NEW ENGLAND TELEPHONE IS A UNIT OF SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP SALOMON INC 150 MILLION OF NOTES DUE DEC 15 2003 PRICED AT PAR TO YIELD 6875 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 105 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ALCO STANDARD CORP FIVE MILLION COMMON SHARES PRICED AT OF 5275 EACH ACCORDING TO THE COMPANY LEHMAN BROTHERS INC GOLDMAN SACHS & CO MERRILL LYNCH & CO AND MORGAN STANLEY & CO COMANAGED THE OFFERING IN THE US THE INTERNATIONAL AFFILIATES OF THESE FIRMS COMANAGED THE OFFERING ABROAD AMWAY ASIA PACIFIC LTD INITIAL OFFERING OF 79 MILLION COMMON SHARES PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DENTSPLY INTERNATIONAL INC 33 MILLION COMMON SHARES PRICED AT 3925 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GRUPO MEXICANO DE DESARROLLO SA INITIAL PUBLIC OFFERING OF 83 MILLION UNITS PRICED AT 34 A UNIT ACCORDING TO THE COMPANY EACH UNIT CONSISTS OF A SERIES B SHARE AND A SERIES L SHARE SOME 4166666 UNITS WILL BE OFFERED IN THE US AND CANADA 2083333 UNITS WILL BE OFFERED IN MEXICO AND 2083334 UNITS WILL BE OFFERED IN EUROPE AND ASIA SHARES UNDERLYING THE UNITS TO BE OFFERED IN THE US CANADA EUROPE AND ASIA WILL BE EVIDENCED BY AMERICAN DEPOSITARY SHARES EACH REPRESENTING ONE SERIES B SHARE OR ONE SERIES L SHARE BEAR STEARNS & CO IS LEAD MANAGER IN THE US AND CANADA UBS LTD IS LEAD MANAGER IN EUROPE AND ASIA AND INVERMEXICO CASA DE BOLSA IS LEAD MANAGER IN MEXICO COUNTRYWIDE MORTGAGE INVESTMENTS INC SEVEN MILLION COMMON SHARES PRICED AT 8625 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO THE COMPANY MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA 4418 MILLION OF REFUNDING BONDS PRICED BY A CS FIRST BOSTON INC GROUP INCLUDED ARE 281 MILLION OF SERIES CC BONDS PRICED TO YIELD FROM 325 IN 1995 TO 54 IN 2019 524 MILLION OF SIXTH CROSSOVER SERIES BONDS TO YIELD FROM 465 IN 2004 TO 52 IN 2008 AND 1083 MILLION OF SERIES 1993D BONDS TO YIELD FROM 325 IN 1995 TO 5 IN 2006 THE MUNICIPAL BOND INVESTORS ASSURANCE CORP IS INSURING SERIES CC BONDS DUE IN 200406 AND SIXTH CROSSOVER SERIES BONDS DUE IN 2004 AMBAC INDEMNITY CORP IS INSURING SERIES CC BONDS DUE IN 2013 AND 2019 THE INSURED SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P UNINSURED BONDS HAVE A SINGLEA1 RATING FROM MOODY'S FROM S&P THE BONDS HAVE A DOUBLEAMINUS RATING BUT ARE ON CREDITWATCH WITH NEGATIVE IMPLICATIONS NEW YORK STATE DORMITORY AUTHORITY 4156 MILLION OF COURTFACILITIES LEASEREVENUE BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 47 IN 1999 TO 574 IN 2022 THE BONDS HAVE A BAA1 RATING FROM MOODY'S AND TRIPLEBPLUS RATINGS FROM S&P AND FITCH INVESTORS SERVICE INC NEW YORK STATE THRUWAY AUTHORITY 204 MILLION OF SERIES B GENERALREVENUE BONDS PRICED BY A DILLON READ & CO GROUP YIELDS RANGE FROM 27 IN 1995 TO 538 IN 2020 BONDS DUE IN 19982009 2014 AND 2020 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP THE SECURITIES DUE IN 2024WHICH ARE DERIVATIVES CALLED CONVERTIBLE INVERSE FLOATINGRATE BONDSARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO THE INSURED SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE UNINSURED BONDS HAVE A SINGLEA1 RATING FROM MOODY'S AND A SINGLEA RATING FROM S&P PALM BEACH COUNTY FLA 167 MILLION OF SERIES 1993A SOLIDWASTE INDUSTRIALDEVELOPMENTREVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP THE ISSUE INCLUDES 6375S PRICED AT PAR DUE IN 2007 65S PRICED AT PAR DUE IN 2009 67S PRICED AT PAR DUE IN 2015 AND 685S PRICED AT PAR DUE IN 2021 WHEN BONDS ARE PRICED AT PAR COUPON AND YIELD ARE SAME FOR EACH MATURITY THIS ISSUE IS SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX FEDERAL HOME LOAN MORTGAGE CORP 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1659 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS CITICORP 798 MILLION OF CREDITCARD CERTIFICATES PRICED IN TWO PARTS THE TRANSACTION STANDARD CREDIT CARD MASTER TRUST 19933 IS BACKED BY VISA AND MASTERCARD CREDITCARD RECEIVABLES ORIGINATED BY CITIBANK NA A CITICORP UNIT THE 750 MILLION OF SENIOR CLASS A CERTIFICATES RATED TRIPLEA BY DUFF & PHELPS CO FITCH MOODY'S AND S&P WAS PRICED AS 55S AT 99855 TO YIELD 5533 A 40BASISPOINT SPREAD ABOVE THE TREASURY'S FIVEYEAR NOTE THE CERTIFICATES SOLD BY DEALERS LED BY CITICORP SECURITIES MARKETS INC HAVE AN AVERAGE LIFE OF FIVE YEARS THE 48 MILLION OF SUBORDINATED CLASS B CERTIFICATES RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P WAS PRICED AS 57S AT 99748 TO YIELD 5758 A 625BASISPOINT SPREAD ABOVE THE FIVEYEAR NOTE THE CERTIFICATES SOLD BY UNDERWRITERS LED BY MERRILL LYNCH & CO HAVE AN AVERAGE LIFE OF FIVE YEARS THE CERTIFICATES WERE SOLD IN A SOFTBULLET STRUCTURE WITH THE 6 SUBORDINATE CLASS SUPPORTING THE CLASS A CERTIFICATES AND A 5 CASHCOLLATERAL ACCOUNT SHARED BETWEEN THE TWO CLASSES AND A 2 CASHCOLLATERAL ACCOUNT SUPPORTING ONLY THE CLASS B CERTIFICATES KOBE STEEL LTD JAPAN 10 BILLION YEN OF 32 EUROBONDS DUE APRIL 14 2000 AT ISSUE PRICE PAR VIA IBJ INTERNATIONAL LTD BONDS PRICED TO YIELD 3198 FEES UNDISCLOSED KOBE STEEL LTD JAPAN 10 BILLION YEN OF 3 EUROBONDS DUE APRIL 14 1999 AT ISSUE PRICE PAR VIA DKB INTERNATIONAL PLC FEES UNDISCLOSED STERLITE INDUSTRIES LTD INDIA 90 MILLION OF CONVERTIBLE EUROBONDS WITH INDICATED COUPON OF 35 TO 4 DUE JUNE 30 1999 AT ISSUE PRICE PAR VIA LEAD UNDERWRITER ROBERT FLEMINGS & CO GREENSHOE OPTION TO INCREASE ISSUE BY 10 MILLION TO 100 MILLION BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT INDICATED PREMIUM OF 5 TO 10 CONVERSION PERIOD RUNS FROM MARCH 22 TO MAY 31 1999 CALLABLE ON JUNE 30 1996 SUBJECT TO SHARE PRICE BEING AT LEAST 130 OF CONVERSION PRICE TERMS DUE TO BE FIXED DEC 16 OR DEC 17 FEES UNDISCLOSED TRANSPORTADORA GAS DEL SUR ARGENTINA 200 MILLION OF EUROBONDS PRICED AS 775S DUE DEC 23 1998 AT ISSUE AND REOFFER PRICE 997 VIA LEHMAN BROTHERS INTERNATIONAL AT REOFFER PRICE BONDS YIELD 782 A SPREAD OF 270 BASIS POINTS OVER THE COMPARABLE US TREASURY FEES ONE INTEREST PAYABLE SEMIANNUALLY 9312150031 931215 WORLD TRADE TALKS THE URUGUAY ROUND'S KEY RESULTS THIS ROUND OF NEGOTIATIONS WAS BEGUN IN PUNTA DEL ESTE URUGUAY IN SEPTEMBER 1986 IT WAS INTENDED TO REDUCE BARRIERS TO TRADE IN GOODS INCLUDING TARIFFS AND SUCH NONTARIFF BARRIERS AS QUOTAS EXPORT SUBSIDIES AND ANTIIMPORT REGULATIONS IT ALSO WAS INTENDED TO EXTEND THE 46YEAROLD GENERAL AGREEMENT ON TARIFFS AND TRADE THE RULE BOOK FOR INTERNATIONAL TRADE TO AGRICULTURE FINANCIAL AND OTHER SERVICES AND PROTECTION OF INTELLECTUAL PROPERTY SUCH AS PATENTS YESTERDAY'S TENTATIVE AGREEMENT MET SOME OF THESE GOALS BUT NEGOTIATORS JETTISONED SEVERAL CONTROVERSIAL ISSUES AT THE LAST MINUTE PRESIDENT CLINTON MUST NOTIFY CONGRESS BY TODAY THAT HE INTENDS TO ENTER INTO A GATT AGREEMENT AND SUBMIT A SIGNED AGREEMENT AND EVALUATIONS BY VARIOUS ADVISORY PANELS BY APRIL 15 CONGRESS MUST ACCEPT THE PACT WITHOUT CHANGES OR REJECT IT BUT DOESN'T HAVE ANY FIRM DEADLINE FOR ACTION THE US EUROPE AND OTHER MAJOR INDUSTRIAL POWERS AGREED TO ELIMINATE TARIFFS ALTOGETHER ON PHARMACEUTICALS CONSTRUCTION EQUIPMENT MEDICAL EQUIPMENT PAPER AND STEEL IN ALL THE SHARE OF GOODS IMPORTED BY DEVELOPED COUNTRIES WITHOUT TARIFFS WILL MORE THAN DOUBLE TO 43 FROM 20 FOR DEVELOPING COUNTRIES IT WILL RISE TO 45 FROM 22 TARIFFS ALSO ARE TO BE CUT SUBSTANTIALLY ON CHEMICALS WOOD AND ALUMINUM MOST TARIFFS ON MICROPROCESSORS WOULD REMAIN AT ZERO BUT THOSE ON MEMORY CHIPS AND OTHERS WOULD DROP TO 7 FROM 14 INDUSTRIAL TARIFFS WHICH NOW AVERAGE 47 OF THE VALUE OF THE PRODUCTS TRADED WOULD BE REDUCED TO AN AVERAGE OF 3 THE AGREEMENT PROVIDES FOR TOUGHER AND QUICKER GATT ACTIONS TO RESOLVE DISPUTES OVER USE OF ANTIDUMPING LAWS INVOKED BY THE US AND EUROPE TO IMPOSE PENALTIES ON FOREIGN PRODUCERS THAT SELL GOODS ABROAD BELOWCOST DEVELOPING NATIONS OFTEN THE SUBJECT OF SUCH ANTIDUMPING LAWS SOUGHT TO CURTAIL THEIR USE BUT THE FINAL COMPROMISE IS CLOSER TO THE US AND EUROPEAN POSITION TEXTILES AND CLOTHING ARE THE MOST IMPORTANT EXPORT FOR MANY DEVELOPING COUNTRIES ACCOUNTING FOR NEARLY A QUARTER OF THEIR INDUSTRIAL EXPORTS A SYSTEM OF QUOTAS THAT LIMITS IMPORTS OF TEXTILES AND APPAREL TO THE US AND OTHER DEVELOPED COUNTRIES THE MULTIFIBER ARRANGEMENT WILL BE PHASED OUT OVER 10 YEARS MOST US TEXTILE TARIFFS WOULD BE REDUCED BY ABOUT 25 THE PACT PROVIDES FOR 20YEAR PROTECTION OF PATENTS TRADEMARKS AND COPYRIGHTS IMPORTANT FOR BOOK SOFTWARE FILM AND PHARMACEUTICAL INDUSTRIES BUT IT ALLOWS DEVELOPING COUNTRIES AT LEAST 10 YEARS TO PHASEIN PATENT PROTECTION FOR PHARMACEUTICALS AND PATENT PROTECTION FOR BIOTECHNOLOGY PRODUCTS IS ALSO WEAK COUNTRIES THAT EXPORT FARM GOODS WILL REDUCE THE VOLUME OF SUBSIDIZED EXPORTS BY 21 OVER SIX YEARS BANS ON RICE IMPORTS IN JAPAN AND SOUTH KOREA WILL BE LIFTED QUOTAS FOR IMPORTS OF SUGAR DAIRY AND PEANUTS TO THE US WILL BE PHASED OUT AND REPLACED BY TARIFFS INITIAL ACCESS TO PREVIOUSLY CLOSED MARKETS WOULD EQUAL AT LEAST 3 OF DOMESTIC CONSUMPTION JAPAN AGREED TO ALLOW THE SHARE OF IMPORTED RICE TO INCREASE TO 4 IN 1995 AND TO 8 OVER SIX YEARS THE LARGEST TARIFF CUTS ARE FOR CUT FLOWERS THE SMALLEST FOR DAIRY PRODUCTS TRADE IN SERVICES AMONG GATT MEMBERS AMOUNTS TO MORE THAN 900 BILLION A YEAR BUT HASN'T PREVIOUSLY BEEN COVERED BY GATT RULES DEVELOPING COUNTRIES AGREED TO OPEN THEIR MARKETS IN LEGAL SERVICES ACCOUNTING AND SOFTWARE BUT US NEGOTIATORS FAILED TO SECURE ACCESS TO FOREIGN MARKETS THAT ARE LARGELY CLOSED TO US BANKS AND SECURITIES FIRMS SUCH AS JAPAN SEVERAL SOUTHEAST ASIAN NATIONS AND MANY DEVELOPING COUNTRIES THE US AGREED TO OPEN ITS DOORS TO FOREIGN FINANCIALSERVICES FIRMS BUT ASSERTED THE RIGHT TO LIMIT ACCESS AFTER JANUARY 1996 TO FIRMS FROM NATIONS THAT DON'T RECIPROCATE AMONG THE VERY LAST REMAINING ISSUES WAS A DISPUTE BETWEEN THE US AND THE EUROPEAN COMMUNITY FRANCE ESPECIALLY OVER EUROPEAN LIMITS ON FOREIGN PROGRAMMING SHOWN ON EUROPEAN TELEVISION AND THE USE OF TAXES ON MOVIE TICKETS AND BLANK VIDEOCASSETTES TO SUBSIDIZE THE FRENCH FILM INDUSTRY UNABLE TO RESOLVE THIS THORNY ISSUE NEGOTIATORS AGREED TO DROP IT ALTOGETHER THE AGREEMENT LIMITS GOVERNMENT SUBSIDIES FOR RESEARCH IN SUCH GOODS AS COMPUTER CHIPS TO 50 OF APPLIED RESEARCH THAT WHICH LEADS TO THE FIRST PROTOTYPE AND 75 OF BASIC RESEARCH AND ALLOWS GOVERNMENTS TO AVERAGE THE TWO LIMITS FOR RESEARCH THAT IS A COMBINATION OF THE TWO THE AGREEMENT CREATES A MULTILATERAL TRADING ORGANIZATION TO REPLACE THE GATT SECRETARIAT BUT DETAILS OF THE NEW ORGANIZATION'S POWERS REMAIN UNCLEAR THE MTO WOULD HOWEVER HAVE MORE AUTHORITY TO OVERSEE TRADE IN SERVICES AND AGRICULTURE THAN GATT NOW DOES THE AGREEMENT ALSO ELIMINATES A PROVISION THAT PERMITS ANY GATT MEMBER TO BLOCK THE FINDINGS OF A PANEL CONVENED TO REVIEW CHARGES THAT ONE NATION'S TRADE PRACTICES ARE VIOLATING THE AGREEMENT ENVIRONMENTALISTS WORRY THAT THE MTO MAY BE ABLE TO OVERRULE ENVIRONMENTAL LAWS THAT LIMIT TRADE 9312150030 931215 ADVERTISING FACING REFORM HEALTH INSURERS CHANGE SPOTS BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL WITH THE FUTURE OF US HEALTH CARE UP FOR GRABS HEALTH INSURERS ARE RETHINKING THEIR ADS AND STRUGGLING TO FIND THE RIGHT TONE INSURANCE ADVERTISERS FIGURE THAT IN THE END CONSUMERS WILL HAVE A BIGGER SAY ABOUT WHERE TO BUY THEIR MEDICAL COVERAGE SO UNLIKE PAST ADVERTISING IN THE CATEGORY NEW CAMPAIGNS ARE AIMED MORE AT INDIVIDUALS THAN AT COMPANIES ALL STRIVE TO BE MEMORABLE AND TO BRAND THE INSURER'S NAME IN PEOPLE'S MINDS THE CAMPAIGNS ARE ALTERNATELY SCARY FUNNY AND POIGNANT SOME INSURERS AWARE THAT MANY CONSUMERS ARE ANXIOUS ABOUT THEIR FUTURE HEALTH BENEFITS HAVE BEEN PUSHING THE FEAR BUTTON A COMMERCIAL FROM HEALTH INSURANCE PLAN OF GREATER NEW YORK FEATURES A BARBER WHO VENTS HIS ANGER OVER THE SIZE OF HIS MEDICAL BILLS WHILE STROPPING A STRAIGHT RAZOR TO THE DISMAY OF HIS LATHEREDUP CUSTOMER A SPOT FOR HMO BLUE PART OF BLUE CROSS AND BLUE SHIELD OF NEW JERSEY OPENS LIKE A HORROR MOVIE WITH CARTOONLIKE CONSUMERS SHRIEKING IN FRIGHT AT THE COST OF HEALTH CARE TODAY IT'S SUPPOSED TO GET YOUR ATTENTION SAYS A SPOKESMAN FOR THE NEW JERSEY INSURER OTHERS ARE STICKING TO THE WARM AND FUZZY APPROACH METROPOLITAN LIFE INSURANCE AND ITS AGENCY YOUNG & RUBICAM STAKED OUT THIS TURF YEARS AGO BY TYING ALMOST ALL OF THE INSURER'S ADS TO THE PEANUTS GANG METLIFE IS USING SNOOPY AND HIS PALS AGAIN IN ITS FIRST METLIFE HEALTHCARE NETWORK ADS AIMED AT CONSUMERS WHICH BEGAN IN SEPTEMBER YOU DON'T HAVE TO BE BIG TO BENEFIT FROM IT NOTES A HEADLINE OVER LUCY'S LEMONADE STAND NEXT YEAR METLIFE PLANS TO RUN 60SECOND METLIFE HEALTHCARE AWARENESS MINUTES ON RADIO OFFERING INFORMATION AND FREE BOOKLETS ON TOPICS SUCH AS NUTRITION AND IMMUNIZATION ONCE YOU GET TO KNOW US BETTER YOU MAY WANT TO TELL YOUR EMPLOYER TO LOOK INTO METLIFE HEALTHCARE HMO THE ANNOUNCER SAYS BLUECROSS BLUESHIELD ASSOCIATION THE NATIONAL ORGANIZATION OF REGIONAL BLUE CROSS AND BLUE SHIELD INSURERS IS RESEARCHING A POSSIBLE SPONSORSHIP OF THE WINTER OLYMPIC GAMES NEXT YEAR TO INCREASE ITS VISIBILITY THE ASSOCIATION BASED IN WASHINGTON HAS PUT OUT FEELERS ON MADISON AVENUE FOR AN AGENCY TO HANDLE THE PROPOSED CAMPAIGN A SPOKESWOMAN SAYS AMONG THOSE AGENCIES UNDER CONSIDERATION HAL RINEY & PARTNERS A MASTER OF FEELGOOD COMMERCIALS THEN THERE'S US HEALTHCARE WHOSE UNUSUAL SPOTS HAVE ONLY THE FAINTEST CONNECTION TO HEALTH INSURANCE AND HAVE LEFT MANY INDUSTRY EXPERTS SCRATCHING THEIR HEADS THE COMPANY RUNS UNUSUALLY LONG COMMERCIALS OF 60 AND 70 SECONDS THAT ARE SHORT ON SALES PITCHES AND LONG ON LUSH VISUALS AND NOSTALGIC MUSIC ONE SPOT RECORDS AN IDYLLIC OUTDOOR WEDDING WITH MAURICE CHEVALIER CROONING THANK HEAVEN FOR LITTLE GIRLS ANOTHER DOCUMENTS A LITTLE GIRL'S TRIP TO THE EMERGENCY ROOM ON A DARK AND STORMY NIGHT AS A VOICE BELTS OUT TOMORROW FROM THE BROADWAY SHOW ANNIE I THINK PEOPLE HAVE EMOTIONAL FEELINGS ABOUT HEALTH CARE SAYS LARRY ALTEN VICE PRESIDENT OF CREATIVE SERVICES AT THE BLUE BELL PA COMPANY WE WANTED TO EMPHASIZE THE POSITIVE ASPECTS BECAUSE WE'RE INTO PREVENTIVE CARE THE WAY THIS NEW WORLD IS EVOLVING IT'S LOOKING LIKE THEY WERE PRESCIENT SAYS JOSEPH MARTINGALE VICE PRESIDENT OF TOWERS PERRIN AN EMPLOYEE BENEFITS CONSULTING FIRM OBSERVERS SAY THE US HEALTHCARE CAMPAIGN WHICH DOESN'T SEEM TO PUSH ANYTHING MORE THAN GOOD FEELINGS MAY END UP BEING A WISE COURSE FOR ADVERTISERS AT SUCH AN UNCERTAIN TIME FOR THE HEALTHCARE INDUSTRY GOOD FEELINGS DIDN'T FEEL GOOD TO AETNA LIFE & CASUALTY WHEN IT DEVELOPED A STRAIGHT TALK CAMPAIGN WITH AGENCY AMMIRATI & PURIS THREE YEARS AGO THAT REPLACED THE KITSCHY AETNA I'M GLAD I MET YA CAMPAIGN VISUALLY THE ADS ARE STARK MADE UP OF WHITE TYPE ON A PLAIN BLACK SCREEN IN ONE THE SOUND OF CHILDREN SINGING HAPPY BIRTHDAY PLAYS IN THE BACKGROUND WHILE VIEWERS READ ABOUT LISA BORN WITH MALFUNCTIONING KIDNEYS WE HELPED LISA'S MOTHER LEARN TO CARE FOR HER IT SAVED 200000 IN HOSPITAL COSTS AND LET LISA GROW UP AT HOME SKEPTICAL CONSUMERS WANT STRAIGHT TALK SAYS KEVIN MALLOY AETNA'S DIRECTOR OF ADVERTISING TOO MUCH WARMTH AND FUZZINESS HAVE OVER MANY MANY YEARS RAISED FALSE EXPECTATIONS ABOUT OUR TRUE ROLE AND WHAT WE CAN DO AS A COMPANY BUT FOR CIGNA ADDING HUMANISTIC QUALITIES TO ITS IMAGE WAS A MUST ACCORDING TO PATRICE KAVANAUGH SENIOR CONSULTANT AT YOUNG & RUBICAM'S CORPORATE DESIGN UNIT LANDOR & ASSOCIATES WHICH CHANGED THE COMPANY'S OLD BLUEBOX LOGO TO A TREE ONE OF CIGNA'S NEW COMMERCIALS SHOWS ANDREA AND JOSEPH A COUPLE EXPECTING THEIR FIRST BABY DONALD SUTHERLAND THE ACTOR NARRATES SCENES OF THEM READING BABY BOOKS HANGING WALLPAPER PICKING OUT NAMES BUT SOMEHOW WHEN THEIR FIRST BABY ARRIVED ANDREA AND JOSEPH STILL FELT UNPREPARED MR SUTHERLAND SAYS IN HIS SOOTHING MUMBLE THAT'S WHY WE SEND A REGISTERED NURSE TO VISIT NEW FAMILIES THAT STILL NEED PAUSE A LITTLE HELP THEN COMES THE SIGNOFF CIGNA A BUSINESS OF CARING IN INSURANCE YOU HAVE TO BE SEEN AS PROFESSIONAL AND STABLE SAYS MS KAVANAUGH THOSE QUALITIES ARE THE PRICE OF ENTRY THE POINT OF DIFFERENTIATION IS TO BE MORE HUMANISTIC AND CARING IN ITS CORPORATE ADS CIGNA JETTISONED THE DECIDEDLY UNFRIENDLY SLOGAN IT HAD AIMED AT CORPORATE BENEFITS EXECUTIVES WE GET PAID FOR RESULTS NOW A NEW CORPORATE CAMPAIGN FROM THE LOS ANGELES OFFICE OF OMNICOM GROUP'S DDB NEEDHAM FEATURES BRAVE FIREMEN AN INNOCENT INFANT AND THE SAME BUSINESS OF CARING TAGLINE THE FOCUS ON PREGNANCY AND PARENTHOOD IN THE HEALTHPLAN ADS FOLLOWS A PUNCHIER EFFORT THAT HIGHLIGHTED REGIONAL ADVANTAGES CIGNA BELIEVED IT HAD OVER COMPETITORS IN ONE INSTANCE CIGNA USED A WOODEN DUCK IN A SHOOTING GALLERY TO BRAG ABOUT THE QUALITY OF ITS DOCTORS BY PROMISING NO QUACKS OTHER SPOTS IN THE NEW CAMPAIGN INCLUDE MINIPORTRAITS OF AN INFANT WHO WAS BORN SAFELY AFTER A HIGHRISK PREGNANCY AND OF GWEN AND MIKE WHOSE DAUGHTER NEEDS A CHECKUP JUST AS THEIR TELEVISION REFRIGERATOR AND CLUTCH GO ON THE FRITZ CARL SPIELVOGEL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SAATCHI & SAATCHI CO'S BIG BACKER SPIELVOGEL BATES AGENCY SAID HE IS RELINQUISHING HIS ROLE AS CHIEF EXECUTIVE AS EXPECTED MICHAEL BUNGEY 53 YEARS OLD ASSUMES THE TITLE OF CHIEF EXECUTIVE EFFECTIVE JAN 1 MR BUNGEY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER LAST YEAR MR SPIELVOGEL AGE 64 IS EXPECTED TO REMAIN CHAIRMAN OF THE COMPANY AT LEAST THROUGH THE END OF NEXT YEAR MR SPIELVOGEL SAID UNDER THE NEW ARRANGEMENT HE WOULD BE MORE REMOVED FROM THE DETAILS I'LL BE CONCENTRATING ON BUILDING THE BUSINESS FROM A GLOBAL STANDPOINT HE SAID MR SPIELVOGEL WAS THE ADVERTISING COLUMNIST FOR THE NEW YORK TIMES FROM 1957 TO 1960 IN 1960 HE ENTERED THE ADVERTISING BUSINESS BY WORKING FOR MARION HARPER JR ON THE FOUNDING OF INTERPUBLIC GROUP OF COS THE FIRST MULTIAGENCY CONGLOMERATE ON MADISON AVENUE IN 1979 MR SPIELVOGEL AND CREATIVE PARTNER BILL BACKER FOUNDED THEIR OWN AGENCY BACKER & SPIELVOGEL WHICH SAATCHI & SAATCHI ACQUIRED AND THEN MERGED WITH THE TED BATES AGENCY NATIONAL MEDIA CORP SAID IT HAS PAID 550000 PLUS OUTSTANDING ROYALTIES TO SETTLE A LAWSUIT FILED EARLIER THIS YEAR BY POSITIVE RESPONSE TELEVISION INC ITS BUSINESS PARTNER IN THE AMAZING DISCOVERIES INFOMERCIAL SERIES POSITIVE RESPONSE OF TOPANGA CALIF IS A CLOSELY HELD INFOMERCIAL PRODUCER WHOSE CHAIRMAN MARK LEVEY ALSO PLAYS THE PART OF A TALKSHOW HOST IN THE AMAZING DISCOVERIES INFOMERCIALS POSITIVE RESPONSE SUED NATIONAL MEDIA IN FEDERAL COURT IN LOS ANGELES IN MAY ALLEGING THAT NATIONAL MEDIA HAD FALSELY REGISTERED THE AMAZING DISCOVERIES NAME IN ORDER TO USE IT IN INFOMERCIALS PRODUCED WITH OTHER BUSINESS PARTNERS IN ADDITION TO THE 550000 NATIONAL MEDIA MUST PAY POSITIVE RESPONSE ROYALTIES WITHHELD DURING THE LITIGATION POSITIVE RESPONSE SAID THE ROYALTIES AMOUNT TO MORE THAN 18 MILLION UNDER TERMS OF THE SETTLEMENT THE TWO COMPANIES WILL CONTINUE THEIR PARTNERSHIP IN THE AMAZING DISCOVERIES SERIES WITH NATIONAL MEDIA OWNING THE TRADEMARK AND POSITIVE RESPONSE ACTING AS EXCLUSIVE PRODUCER NATIONAL MEDIA ALSO ANNOUNCED THAT IT WILL TAKE A ONETIME CHARGE OF 800000 IN THE FISCAL THIRD QUARTER ENDING DEC 31 RELATED TO ITS RELOCATION OF FULFILLMENT OPERATIONS MEDIA PRICES WERE HIGHER THAN EXPECTED IN THE QUARTER A COMPANY SPOKESMAN SAID BECAUSE OF NATIONAL ADVERTISERS THAT HAVE BEEN AIRING INFOMERCIALS TO BOLSTER HOLIDAY SALES 9312150029 931215 HOME WORK HOME WORKERS ARE A BUNCH OF SLOBS BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL LIKE A GROWING NUMBER OF AMERICANS CHUCK LEONARD WORKS FROM A HOME OFFICE AND THE PLACE IS A MESS BOXES LINE THE WALLS AND BLOCK THE PATH TO HIS COMPUTER PAPER LITTERS THE FLOOR A PHOTOGRAPHER AND DISK JOCKEY MR LEONARD CAN'T FIND THE VALUABLE OLD RECORDINGS HE STASHED SOMEWHERE AND HE MISPLACES UNPAID BILLS BUT NOTHING CAN MAKE THE LINDEN NJ ENTERTAINER CLEAN UP HIS ACT NOT EVEN THE BROKEN RIB HE SUFFERED WHEN HE SLIPPED ON HIS PAPERSTREWN OFFICE FLOOR AND FELL ON THE EDGE OF A DESK I KNOW WHERE EVERYTHING IS HE SAYS ONLY A LITTLE DEFENSIVELY IT'S ON THE FLOOR HE'S NOT ALONE PEOPLE WHO WORK AT HOME OCCUPY SOME OF THE NATION'S SLOPPIEST AND MOST DISORGANIZED OFFICES CLUTTER IS A GROWING PROBLEM SAYS THOMAS E MILLER AN ITHACA NY CONSULTANT ON WORKATHOME ISSUES THERE IS NO DOUBT THAT THE PAPER MONSTER IS GROWING AS THE HOMEOFFICE TREND HAS ACCELERATED HEAVY DEMAND FOR HOMEOFFICE ORGANIZING HELP HAS HELPED INCREASE MEMBERSHIP IN THE NATIONAL ASSOCIATION OF PROFESSIONAL ORGANIZERS A TUCSON ARIZ TRADE GROUP SINCE 1991 THE ASSOCIATION HAS GROWN BY 31 TO 525 MEMBERS PAUL AND SARAH EDWARDS OF SANTA MONICA CALIF WHO ARE HOSTS OF A RADIO TALK SHOW AND HAVE WRITTEN SEVERAL BOOKS ON WORKING AT HOME SAY LISTENERS' INQUIRIES ABOUT GETTING THEIR HOME OFFICES ORGANIZED HAVE RISEN BY ONETHIRD IN THE PAST COUPLE OF YEARS AND A RECENT CONTEST BY HOME OFFICE COMPUTING MAGAZINE TO NAME AMERICA'S MOST DISORGANIZED HOME OFFICE DREW 2200 ENTRIES SAYS SENIOR EDITOR NICK SULLIVAN THE CLUTTER CAN CREATE TREMENDOUS STRESS KATHI STEWART AN EVERETT WASH PROJECT DEVELOPER AND COORDINATOR SPENDS HOURS DRIVING TO MEET HER CLIENTS AT THEIR OFFICES JUST TO KEEP THEM FROM SEEING THE CLUTTER AND CASTOFF FURNITURE IN HER HOME OFFICE TO ME THE MOST DREADED WORDS IN THE ENGLISH LANGUAGE ARE I'LL DROP THAT OFF AT YOUR OFFICE' SHE SAYS CHARLOTTE KING WHO RUNS SNOWDEN & KING MARKETING COMMUNICATIONS OUT OF HER HOFFMAN ESTATES ILL HOME HAS MISPLACED CLIENTS' CHECKS FOR A WEEK OR TWO AMID THE THOUSANDS OF PROMOTIONAL AND SALES KITS SHE DESIGNS AND DISTRIBUTES FROM HER 12FOOTBY10FOOT OFFICE FORMERLY HER DINING ROOM SHE NOW STORES CHECKS IN FLUORESCENT ZIPPER POUCHES AND USES PLASTIC BASKETS TO SEPARATE PROJECTS I TRY TO REMEMBER THAT I'M MAKING A HUGE MESS ON BEHALF OF MY CLIENTS SHE SAYS AND I TRY TO KEEP A SENSE OF HUMOR OTHERS RISK LIFE AND LIMB JUST TO FIND A FILE LORICE QUONG A FARM CONTROLLER IN EAGLE IDAHO WHO LIKENS HER HOME OFFICE TO THE BOISE CITY DUMP WAS OPENING A FILE DRAWER ONE DAY WHEN ONE OF TWO LARGE STEREO SPEAKERS STACKED ATOP THE CABINET TUMBLED OFF STRIKING HER ON THE HEAD AND BREAKING A WINDOW THOUGH SHE WASN'T INJURED MS QUONG SAYS THE INCIDENT LED HER TO REARRANGE THE SPEAKERS AND EVENTUALLY TO ORGANIZE HER OFFICE MOST HOMEOFFICE WORKERS FEEL THEY DON'T HAVE TIME TO GET ORGANIZED MR EDWARDS ESTIMATES THAT ONLY ONE IN FOUR HOMEOFFICE WORKERS WHO COULD BENEFIT FROM COMPUTER PERSONALINFORMATION AND CALENDARORGANIZER SOFTWARE PROGRAMS ACTUALLY USE THEM MANY INSTEAD HEED IMPULSES TO BUY MORE AND MORE BINDERS FILE FOLDERS AND OTHER GETORGANIZED GIZMOS THAT END UP ADDING TO THE CLUTTER AND TELECOMMUTERS TEND TO BE PACK RATS LACKING PROXIMITY TO OFFICE COLLEAGUES AND INFORMATION SOURCES MANY TRY TO SHORE UP THEIR NETWORK BY SURROUNDING THEMSELVES WITH WALLS OF PAPER MR MILLER SAYS AT A RECENT FOCUS GROUP WITH HOMEOFFICE WORKERS HE ADDS EVERYBODY IN THE ROOM ADMITTED THEY WOULD SAVE SCRAPS OF PAPER BECAUSE THEY THOUGHT THEY MIGHT BE VALUABLE SOMEDAY THE DISARRAY CAN SHATTER THE HARMONY BETWEEN WORK AND HOME LIFE MANY HOMEOFFICE WORKERS HOPE TO ACHIEVE LISA KANAREK A DALLAS CONSULTANT AND AUTHOR OF ORGANIZING YOUR HOME OFFICE FOR SUCCESS SAYS ONE MIDWESTERN HUSBAND AND WIFE FLEW INTO A RAGE AT EACH OTHER WHEN SHE SAT DOWN AT THEIR KITCHEN TABLE WITH THEM TO DISCUSS THE HUSBAND'S MESSY HOME OFFICE WHAT ARE YOUR FRUSTRATIONS SHE ASKED THE WIFE WHO WAS EXTREMELY ORGANIZED SAID 'I TOLD HIM I WOULD HELP HIM GET ORGANIZED BUT HE WON'T LISTEN TO ME' MS KANAREK SAYS THE HUSBAND SAID I THINK THINGS ARE WORKING WELL I USUALLY PUT MY PAPERS AWAY' THEN THE WIFE GAVE HIM A DIRTY LOOK AND THE HUSBAND STORMED OUT OF THE ROOM MS KANAREK SAYS SHE WOUND UP COUNSELING THE TWO INDIVIDUALLY IN SEPARATE ROOMS AND HELPED THE HUSBAND WHITTLE DOWN HIS PAPER PILES MS QUONG SAYS HER HUSBAND'S BLOOD PRESSURE USED TO RISE EVERY TIME HE PASSED HER OFFICE THOUGH HE CALMED DOWN SHE SAYS WHEN I TOLD HIM I'M JUST A NATURALLY MESSY PERSON AND YOU'RE GOING TO HAVE TO ACCEPT THAT' SHE HAS SINCE SPENT FOUR MONTHS CLEANING UP A BIT PITCHING 10 GARBAGE BAGS OF STUFF AND HER HUSBAND IS SO DELIGHTED THAT THE FAMILY IS SHOPPING FOR A NEW HOMEOFFICE COMPUTER SOME PACK RATS SAY PSYCHOANALYSIS HELPS THEM MEND THEIR MESSY WAYS ROSS D GOLDBERG A PHILADELPHIA HOME REPAIRMAN AND FOODSUPPLEMENT DISTRIBUTOR SAYS HE USED TO USE THE VOWEL SYSTEM OF PAPER MANAGEMENT AVOID EVADE IGNORE OUTDATED AND USELESS BUT PSYCHOANALYSIS PLUS A SELFHELP BOOK ON PERSONAL EFFECTIVENESS HELPED HIM TIDY UP HE SAYS MY THERAPIST HELPED ME UNDERSTAND HOW TO ASK THE RIGHT KIND OF QUESTIONS AND SEEK THE TRUTH HE SAYS HE HAS SINCE SPEEDED UP HIS DECISION MAKING AND WHAT USED TO TAKE ME A WEEK TO GET TO NOW TAKES ME 15 TO 20 MINUTES HOMEOFFICE CLUTTER IS FAST BECOMING A CORPORATE ISSUE GUIDELINES BY UNUM LIFE INSURANCE CO OF AMERICA AN UNUM CORP UNIT THAT HAS ABOUT 90 EMPLOYEES WORKING FROM HOME OFFICES FULL OR PART TIME REQUIRE THAT TELECOMMUTERS' HOME OFFICES BE UNCLUTTERED UNUM HAD TO ASK ONE TELECOMMUTER TO REMOVE THE PARAKEETS FROM HER HOME OFFICE AFTER THE BIRDS WERE HEARD CHEEPING AT THE WRONG TIME DURING CLIENTSERVICE CALLS SAYS LIZ NEEDLEMAN UNUM LIFE'S MANAGER OF WORK/HOME PROGRAMS INDEED TELECOMMUTING EMPLOYEES CAN BE AMONG THE BESTORGANIZED HOME WORKERS PARTLY BECAUSE THEY OFTEN GET GUIDELINES FURNITURE AND FILING SUPPORT FROM THE CENTRAL OFFICE AND FOR A FEW HOMEOFFICE WORKERS CLUTTER IS LESS A PROBLEM THAN A RESOURCE BRUCE WATSON A CONSULTING METEOROLOGIST HAS FOUR DECADES OF WEATHER MAPS RECORDS AND REFERENCE MATERIALS STORED IN HIS FOURBEDROOM ROSEVILLE MINN HOME THOUGH HIS WIFE WISHES HE WOULD CONFINE HIS CLUTTER TO THE BASEMENT IT HAS SPILLED INTO THE GARAGE AND A BEDROOM HIS CARS SIT OUTDOORS AND HIS LIVING ROOM IS RESERVED FOR CLIENT MEETINGS EVEN MR WATSON HAS HIS LIMITS NO STACKS OF FILE BOXES ARE ALLOWED TO RISE ABOVE EYE LEVEL PREVENTING THEM FROM FALLING ON HIM OR MAKING HIM FEEL CLAUSTROPHOBIC HE SAYS AND HIS SON FRANK ALSO A METEOROLOGIST IS COMPUTERIZING SOME OF MR WATSON'S RECORDS AND RECENTLY HELPED TAKE A COUPLE OF TONS OF PAPER TO THE RECYCLING CENTER MR WATSON SAYS WHILE GETTING THE RECORDS HE WANTS OUT OF BOXES IS SOMETIMES DIFFICULT MR WATSON INSISTS HIS STORAGE SYSTEM WORKS JUST FINE IF YOU NEED AN IOWA WEATHER MAP FROM 1962 I REMEMBER WHERE IT IS HE SAYS ASKED IF HE EVER LOST ANYTHING HE PAUSES FOR A MOMENT BEFORE ANSWERING GEE I DON'T THINK SO 9312150028 931215 TECHNOLOGY BRIEF BORLAND INTERNATIONAL INC CONCERN SAYS IT APPEALED RULING ON LOTUS COPYRIGHTS BORLAND INTERNATIONAL INC BOSTON SAID IT FILED AN APPEAL OF A COURT RULING THAT FOUND THAT THE SOFTWARE MAKER VIOLATED COPYRIGHTS HELD BY LOTUS DEVELOPMENT CORP THE APPEAL WHICH HAD BEEN EXPECTED WAS FILED IN BOSTON LATE YESTERDAY BEFORE THE FIRST CIRCUIT COURT OF APPEALS A BORLAND SPOKESMAN SAID HE SAID THE APPEAL WAS ACCOMPANIED BY SEVEN FRIENDOFTHECOURT BRIEFS BACKING BORLAND'S ARGUMENTS RAISING ISSUES OF WHETHER STRICT COPYRIGHT LAW SHOULD APPLY TO BASIC SOFTWARE ROUTINES AND WHETHER EXISTING LAW HAD BEEN INTERPRETED CORRECTLY BY THE LOWER COURT BORLAND THIS YEAR WAS FOUND BY A US DISTRICT COURT JUDGE TO HAVE COPIED KEY PORTIONS OF LOTUS'S 123 SPREADSHEET ILLEGALLY IN A VERSION OF ITS COMPETING QUATTRO PRO PRODUCT 9312150027 931215 MARKETING BRIEF TIME WARNER INC WARNER BROS PLANS PARK IN GERMANY WITH NIXDORFS WARNER BROS BURBANK CALIF AND THE NIXDORF FAMILY OF PADERBORN GERMANY SAID THEY PRELIMINARILY AGREED TO DEVELOP A REGIONAL THEME PARK AND STUDIO COMPLEX IN BOTTROPKIRCHHELLEN GERMANY THE PARK AND STUDIO COMPLEX WILL BE MODELED AFTER WARNER BROS MOVIE WORLD IN AUSTRALIA THE PARK WILL FEATURE RIDES SHOWS AND ATTRACTIONS BASED ON POPULAR GERMAN AND AMERICAN FILMS STARS AND CHARACTERS SUCH AS BATMAN POLICE ACADEMY DAS BOOT BUGS BUNNY AND TWEETY BIRD WARNER BROS IS A UNIT OF TIME WARNER INC THE COMPLEX ALSO WILL INCLUDE A WORKING STUDIO FOR FILM AND TELEVISION PRODUCTION THE PROJECT IS EXPECTED TO COST 350 MILLION MARKS 205 MILLION THE PARK AND STUDIO WILL CREATE ABOUT 900 JOBS FINAL CLEARANCE FOR THE PROJECT DEPENDS ON CERTAIN APPROVALS EXPECTED IN THE SPRING 9312150026 931215 BELTWAY BOG HOW WASHINGTON FRUSTRATES CHANGE CAPITAL CULTURE CONGRESSMAN'S SOJOURN IN WASHINGTON TEACHES BITTER POLITICAL LESSON CYNICISM AND SELFINTEREST ARE WORSE THAN EVER THE PUBLIC UNFORGIVING MR KOPETSKI IS GOING HOME BY JILL ABRAMSON AND DANIEL PEARL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THREE YEARS AGO MIKE KOPETSKI CAME TO WASHINGTON PROMISING TO HELP CHANGE IT INSTEAD HE HAS BECOME THE BELTWAY CULTURE'S LATEST ROADKILL MR KOPETSKI IS NO MR SMITH THE FRANK CAPRA IDEALIST WHO CAN'T ACCEPT THE REALITIES OF POLITICS BUT IN HIS HOME STATE OF OREGON HE WAS KNOWN AS A FAMILY MAN AND A HARDWORKING STATE LEGISLATOR WHO BELIEVED IN THE ABILITY OF GOVERNMENT TO EFFECT CHANGE ONCE HE GOT TO WASHINGTON THE CONGRESSMAN'S EFFORTS AT CHANGE WERE ALL TOO FREQUENTLY FRUSTRATED HIS PERSONAL LIFE FRACTURED A 10YEAR MARRIAGE BROKE UP BEFORE THE END OF HIS FIRST TERM AND WHILE HE SAYS HE DOESN'T HAVE A DRINKING PROBLEM THE CONGRESSMAN WAS ARRESTED LAST SPRING AT 220 AM AND CHARGED WITH DRIVING UNDER THE INFLUENCE OF ALCOHOL NINEHOUR REDEYE FLIGHTS BETWEEN WASHINGTON DC AND OREGON A CONGRESSIONAL SCHEDULE THAT IS BLOCKED OUT IN 10MINUTE INCREMENTS AND AFTERHOURS RECEPTIONS AND FUNDRAISERS ONE NIGHT HIS SCHEDULE LISTED 13 HAVE LEFT HIM RAGGED THE 44YEAROLD DEMOCRAT USED TO SPEAK WITH REVERENCE OF THE PROCESS OF GOVERNMENT NOW AFTER SEEING HIS THREEYEAR EFFORT TO CARVE OUT A LEGISLATIVE COMPROMISE ON THORNY NORTHWEST TIMBER ISSUES GET SWALLOWED UP BY WASHINGTON TURF FIGHTS HE COMPLAINS THAT THE PROBLEM WITH THIS TOWN IS THAT THERE IS EVERY FORCE AGAINST YOU FOR CHANGE FINALLY THIS PAST OCTOBER MR KOPETSKI REVEALED THE BIGGEST CHANGE THE MAN WHO HAD BEEN ACHING TO GET TO CONGRESS SINCE HE WAS IN COLLEGE IS GETTING OUT THE ANNOUNCEMENT SURPRISED CONSTITUENTS AND WASHINGTON INSIDERS AFTER ALL HE HAD ENJOYED A METEORIC RISE IN HIS SHORT TIME HERE GAINING A SEAT ON THE PRESTIGIOUS HOUSE WAYS AND MEANS COMMITTEE BECOMING A PROTEGE OF CHAIRMAN DAN ROSTENKOWSKI AND SERVING AS DEPUTY WHIP CHARGED WITH PASSING THE NORTH AMERICAN FREE TRADE AGREEMENT THERE WAS EVEN TALK OF A SENATE CAREER MR KOPETSKI FOUND THAT THE PRESSURES OF POLITICAL LIFE IN WASHINGTON HAVE MULTIPLIED SINCE HIS MENTOR THE FORMER SEN WAYNE MORSE LEFT CONGRESS IN 1968 WHILE THE ABILITY TO ACCOMPLISH GOOD THINGS FOR THE COUNTRY AND FOR CONSTITUENTS HAS DECLINED MOREOVER AN INCREASINGLY CYNICAL PUBLIC GIVES EVEN THE BESTINTENTIONED POLITICIANS LITTLE REWARD FOR THEIR EFFORTS I DON'T CONSIDER MYSELF A SUCCESS SAYS REP KOPETSKI SOFTLY WITH A MOURNFUL REFERENCE TO ALL OF THE THINGS I'VE PUSHED OUT OF MY LIFE THE KOPETSKI SAGA IS THE KIND OF STORY THAT LEAVES AMERICANS BELIEVING THAT LIKE HAMLET'S DENMARK WASHINGTON HAS SOMETHING ROTTEN AT ITS CORE BILL CLINTON'S ELECTION JUST A YEAR AGO WAS MORE THAN ANYTHING AN EXPRESSION OF THE PUBLIC'S LOUD DEMAND FOR A CHANGE IN THE CAPITAL'S CULTURE THE NEW PRESIDENT BECAME THE SYMBOL OF HOPE THAT WASHINGTON COULD BE DIFFERENT BUT THAT BRIEF SURGE OF HOPE QUICKLY FADED THE MONEY CHASE PROCEEDS AT A FASTER RATE THAN EVER SPECIALINTEREST LOBBYING HAS NEVER BEEN MORE FEVERISH CONGRESSIONAL BARONS CONTINUE TO PROTECT THE STATUS QUO OVER THE NEW PRESIDENT'S OBJECTIONS AND A MORE BRUTISH NEWS MEDIA EXAGGERATE ALL OF THE FOIBLES AND FEED PUBLIC CYNICISM AT THE SAME TIME FUNDAMENTAL SHIFTS IN THE NATION HAVE LEFT VOTERS INCREASINGLY INTOLERANT OF SHORTCOMINGS IN THE CAPITAL THE COUNTRY IS IN AN AWKWARD TRANSITION FROM A REPRESENTATIVE DEMOCRACY TO SOMETHING CLOSER TO A TRUE DEMOCRACY AND OFFICIAL WASHINGTON IS HAVING A HARD TIME COPING CSPAN TELECASTS OF EVERY POLITICAL EVENT ON THE HORIZON 800 NUMBERS THAT ENCOURAGE VOTERS TO VENT THEIR DISCONTENT AND CALLIN TALK SHOWS THAT GIVE THE NATION THE FEEL OF AN ELECTRONIC TOWN HALL HAVE MADE VOTERS FEEL THEY KNOW BETTER THAN THEIR REPRESENTATIVES IN WASHINGTON JUST WHAT THE COUNTRY SHOULD DO MEANWHILE THE DEFICIT HAS LEFT GOVERNMENT UNABLE TO SALVE THE WOUNDS AMERICANS FEEL AS THEIR LIVING STANDARDS HAVE DECLINED AND HAS MADE EVERY WASTEFUL PROGRAM THAT EATS UP SCARCE RESOURCES SEEM MORE OFFENSIVE THE NET RESULT IS THAT VOTERS' TRUST IN GOVERNMENT TO DO WHAT IS RIGHT HAS FALLEN PRECIPITOUSLY WITH LESS THAN ONEQUARTER OF THE PUBLIC EXPRESSING CONFIDENCE TODAY AS OPPOSED TO ALMOST THREEQUARTERS IN THE LATE 1950S ACCORDING TO GALLUP POLLS AND CONGRESS NOW RATES AS ONE OF THE WASHINGTON INSTITUTIONS IN WHICH AMERICANS HAVE THE LEAST CONFIDENCE THAT INCREASED CYNICISM IN TURN HAS ERODED THE MORALE OF WASHINGTON LAWMAKERS AND HAS LED EVEN THE BEST TO CONCLUDE THAT THERE IS LITTLE REWARD FOR TRYING TO DO THE RIGHT THING HEALTHY SKEPTICISM IS WARRANTED SAYS SEN JOHN DANFORTH THE MISSOURI REPUBLICAN WHO IS HIMSELF RETIRING BUT THEY THINK EVERYONE IS ON THE TAKE AND IT'S JUST NOT TRUE MR KOPETSKI'S PROBLEMS TO BE SURE AROSE PARTLY FROM HIS OWN OVERRIDING AMBITION MUCH OF WHAT PEOPLE FIND UNATTRACTIVE ABOUT THE CULTURE OF WASHINGTON DERIVES FROM THE FACT THAT THOSE WHO COME HERE HAVE LIKE MR KOPETSKI STRUGGLED SO HARD TO GET HERE AND ONCE HERE THE VAST MAJORITY STAY BUT IN RECENT YEARS AN INCREASING NUMBER OF WELLRESPECTED POLITICIANS HAVE DECIDED IT IS NO LONGER WORTH THE EFFORT TWENTYSIX HOUSE MEMBERS INCLUDING MR KOPETSKI HAVE ALREADY ANNOUNCED THEY ARE LEAVING NEXT YEAR A RECORD FOR THIS POINT IN THE ELECTION CYCLE MANY OF THEM SHARE MR KOPETSKI'S VIEW THAT SOMETHING IS SERIOUSLY AMISS IN THE NATION'S CAPITAL IF THE RETIREMENTS CONTINUE AT THIS PACE FRESHMAN AND SOPHOMORE MEMBERS COULD ACCOUNT FOR NEARLY HALF OF THE HOUSE'S MEMBERS MR KOPETSKI'S FRIENDS SAY THEY WELL UNDERSTAND WHY HE IS LEAVING IT TAKES A BIZARRE BREED REALLY A MUTANT STRAIN TO SURVIVE IN WASHINGTON OVER THE LONG HAUL SAYS DIANE LINN AN OREGON POLITICAL ACTIVIST WHO DURING A BRIEF TENURE HERE SAYS SHE TELEPHONED OREGON FRIENDS NIGHTLY AS A VACCINE AGAINST POTOMAC FEVER FOR HIS PART MR KOPETSKI INSISTS THAT THERE ARE LOTS OF GOOD PEOPLE HERE AND ACKNOWLEDGES WASHINGTON'S CULTURAL FLAWS ONLY WITH GREAT RELUCTANCE HE DOESN'T BLAME WASHINGTON FOR HIS DIVORCE OR HIS DRUNKENDRIVING ARREST BUT HE ACKNOWLEDGES THAT THE WASHINGTON THAT FIRST CAPTURED HIS IMAGINATION WAS A VERY DIFFERENT ONE IT WAS EMBODIED BY SEN MORSE AN EARLY OPPONENT OF THE VIETNAM WAR MR KOPETSKI WHO GREW UP IN A WORKINGCLASS FAMILY IN RURAL OREGON ALSO OPPOSED THE WAR AND WAS THE ONLY PERSON WILLING TO ARGUE AGAINST IT IN A HIGHSCHOOL DEBATE WHEN HIS BEST FRIEND WAS KILLED IN VIETNAM MR KOPETSKI SAYS HE WAS TOTALLY DISTRAUGHT THE ANSWER HE DECIDED WAS TO FIGHT FOR CHANGE WITHIN WASHINGTON HE WAS A PAGE AT THE 1968 CHICAGO DEMOCRATIC CONVENTION THAT OTHERS HIS AGE WERE TRYING TO BREAK UP SEN MORSE HELPED HIM GET A PATRONAGE JOB AT THE SENATE POST OFFICE SO HE COULD ATTEND AMERICAN UNIVERSITY AFTER SORTING MAIL HE SOMETIMES OBSERVED SENATE HEARINGS AND HE SOON TOLD FRIENDS HE WANTED TO BE A CONGRESSMAN WORKING AS AN INVESTIGATOR ON THE SENATE'S WATERGATE COMMITTEE HE SAW CONGRESS PUTTING ASIDE PARTISAN POLITICS GENUINELY SEEKING FACTS AND RESTORING THE COUNTRY'S FAITH IN THE SYSTEM BACK IN OREGON MR KOPETSKI FOUND THE PROCESS WORKED THE SAME WAY AFTER HE WAS ELECTED A STATE REPRESENTATIVE IN 1984 LOBBYISTS SOMETIMES GOT CALLS FROM HIM AT HOME AT 9 PM BECAUSE HE HAD JUST READ SOMETHING IN HIS OFFICE AND NEEDED INFORMATION MIKE WAS BORN TO BE ON A COMMITTEE HE WAS BORN TO WORD AMENDMENTS SAYS DONALD HOMUTH A POLITICAL ADVISER MR KOPETSKI ESTABLISHED A CONTENT IF UNGLAMOROUS LIFESTYLE WITH HIS SECOND WIFE LINDA ZUCKERMAN HIS MARRIAGE TO HIS FIRST WIFE PAT DISSOLVED AFTER HE ENTERED POLITICS THE LEGISLATURE MET JUST ONCE EVERY TWO YEARS LEAVING TIME FOR PLANTING A ROSE GARDEN AT THEIR MODEST ONESTORY HOME OUTSIDE SALEM IN 1987 STATE REP KOPETSKI WAS A DRIVING FORCE BEHIND THE EFFORT TO PUSH A PARENTALLEAVE BILL THROUGH THE LEGISLATURE HIS BILL MADE OREGON THE SECOND STATE TO HAVE SUCH A LAW UNLIKE THE CYNICISM THAT LATER GREETED HIS EFFORTS IN WASHINGTON HIS OREGON SUCCESS WON WIDE ACCLAIM DOZENS OF PARENTS HOLDING COOING BABIES SAT IN THE LEGISLATURE'S GALLERY CHEERING MR KOPETSKI ON HE TOLD ASSOCIATES HE HOPED TO SEE THE BILL SERVE AS A MODEL FOR CONGRESS ONE YEAR LATER MR KOPETSKI LOST A CONGRESSIONAL BID TO INCUMBENT REP DENNY SMITH BY JUST 707 VOTES BUT IN 1990 HE BEAT THE REPUBLICAN AFTER CHARGING THAT HIS OPPONENT WAS A CAPTIVE OF THE SAVINGSANDLOAN INDUSTRY THEN THE COUNTRY'S NO 1 SPECIALINTEREST ENEMY I REALLY WANT TO CHANGE THINGS HE SAID A FEW DAYS AFTER THE ELECTION PROMISING I'LL BRING SPIRIT NEW ENERGY EAGER TO FULFILL THAT PROMISE MR KOPETSKI SAT THROUGH FRESHMAN SEMINARS WITH TITLES LIKE THE BENEFIT OF EXPERIENCE AND ADVICE AND GETTING THE RIGHT COMMITTEE ASSIGNMENTS TO GET ON THE SCIENCE AND TECHNOLOGY COMMITTEE HE GAVE KEY LEGISLATORS PERSONAL NOTES ATTACHED TO PACKAGES OF TILLAMOOK CHEESE AND BOTTLES OF OREGON PINOT NOIR BEFORE LONG HE FELT READY TO TACKLE WHAT HE FELT WAS A KEY ISSUE FOR HIS HOME STATE BROKERING A COMPROMISE BETWEEN THE TIMBER INDUSTRY AND THE ENVIRONMENTALISTS WHO HAD BEEN WARRING OVER OLDGROWTH FORESTS IN THE PACIFIC NORTHWEST HE SPENT HOURS MEETING WITH LABOR LEADERS ENVIRONMENTALISTS AND BUSINESS LOBBYISTS SEARCHING FOR THE MIDDLE GROUND IN JUNE 1992 HIS LONG EFFORTS FINALLY BEGAN TO PAY OFF THE HOUSE AGRICULTURE COMMITTEE APPROVED HIS COMPROMISE PROPOSAL WHICH WOULD BAN LOGGING ON 68 MILLION ACRES OF OLDGROWTH FORESTS PRESERVING THEM FOR THE SPOTTED OWL MR KOPETSKI HOPED THE DEAL WOULD FINALLY END BICKERING ON THE ISSUE THAT HAD HOBBLED THE STATE AND ITS CONGRESSIONAL DELEGATION BUT THEN THE EFFORT STARTED TO TURN SOUR HOUSE SPEAKER TOM FOLEY WHO FEARED MR KOPETSKI'S PLAN WOULD LEAD TO A COMPROMISE THAT WOULD HARM THE LOGGING INTERESTS IN HIS OWN STATE OF WASHINGTON WORKED TO BOTTLE UP THE MEASURE IN THE INTERIOR COMMITTEE THE PROCESS SLOWLY GROUND TO A HALT A DEMORALIZED MR KOPETSKI SAID HE HAD LEARNED A BITTER LESSON ABOUT WASHINGTON'S CULTURE IT'S MUCH EASIER TO STOP SOMETHING THAN TO MAKE IT HAPPEN IT'S REVOLTING TO ME HE SAID LATER I'VE SEEN PEOPLE HOLDING UP BILLS FOR PERSONAL REASONS BECAUSE THEY DON'T LIKE THE SPONSOR OR DON'T WANT TO GIVE THE PROPONENT A POLITICAL ADVANTAGE IN THE MEANTIME THE DEMANDS OF POLITICS AND FUND RAISING WERE TAKING A TOLL ON MR KOPETSKI'S PERSONAL LIFE THE TRIPS BETWEEN WASHINGTON AND OREGON HE TRIED TO GO EVERY OTHER WEEKEND WERE EXHAUSTING HIS MARRIAGE FOUNDERED AND HIS WIFE RETURNED TO OREGON AND FILED FOR DIVORCE POLITICS WAS A FACTOR MR KOPETSKI CONCEDES HIS HECTIC CONGRESSIONAL SCHEDULE HAD OTHER EFFECTS WHERE ONCE HE WAS A STEADY FAN AT HIS SON'S WRESTLING MATCHES HE NOW SOMETIMES COULD SEE HIS TEENAGE SON ONLY AT POLITICAL DINNERS WASHINGTON IS NOTORIOUSLY HARD ON FAMILY LIFE INDEED SOME OF THE ARKANSANS WHO ACCOMPANIED PRESIDENT CLINTON TO WASHINGTON LEFT THEIR FAMILIES IN LITTLE ROCK WHITE HOUSE AIDE BRUCE LINDSEY FOR ONE WEARS TWO BEEPERS ONE FOR THE WHITE HOUSE ONE FOR HIS CHILDREN DEPARTING WHIT HOUSE DEPUTY CHIEF OF STAFF ROY NEEL CITED THE FACT THAT HE HAD MISSED ALL THREE OF HIS CHILDREN'S MOST RECENT BIRTHDAYS AS PART OF THE REASON HE IS QUITTING TO JOIN THE PRIVATE SECTOR OF COURSE THERE ARE PLENTY OF WASHINGTON OFFICIALS WHO DO LEAD BALANCED FAMILY LIVES SUCH AS SEN DANFORTH AN EPISCOPAL PRIEST WHO RAISED FIVE CHILDREN HERE BUT HE SAYS WASHINGTON MAKES IT ALL TOO EASY FOR LAWMAKERS TO LOSE PERSPECTIVE PEOPLE COME TO WORK AND THEY HAVE A STAFF MEETING THEIR EVERY NEED HE EXPLAINS THERE ARE SPECIAL ELEVATORS RESERVED FOR THEM THEY GO HOME AT NIGHT AND EXPECT THEIR FAMILIES TO TREAT THEM AS THEIR STAFF AND LOBBYISTS DO THE GLAMOUR OF BEING IN CONGRESS DID APPEAL TO REP KOPETSKI THE THRILL OF BEING IN THE HOUSE OF GOING ON THE FLOOR IT'S HARD TO DESCRIBE HE SAYS DESPITE A SLIGHT FEAR OF HEIGHTS HE DELIGHTED IN ESCORTING VISITING CONSTITUENTS AND NEW ACQUAINTANCES SUCH AS COMIC PAULA POUNDSTONE ON PRIVATE TOURS OF THE CAPITOL DOME A PERK RESERVED FOR LAWMAKERS AFTER DECIDING TO RUN FOR A SECOND TERM REP KOPETSKI WAS DETERMINED TO BEAT WASHINGTON ON ITS OWN TERMS HE SET HIS SIGHTS ON THE MOST POWERFUL COMMITTEE IN THE HOUSE WAYS AND MEANS THERE AMONG OTHER THINGS HE HOPED TO WIN APPROVAL OF A CAPITALGAINS TAX CUT TO HELP THE THRIVING HIGHTECH BUSINESSES BACK HOME IN OREGON BEING ON WAYS AND MEANS MEANS NEVER HAVING TO SAY YOU'RE SORRY TO ANYONE QUIPS FORMER MEMBER THOMAS DOWNEY AND RARELY DOES A SECONDTERMER GET A SEAT BUT REP KOPETSKI HAD DEFTLY CAUGHT THE EYE OF THE PANEL'S CHAIRMAN WHO SHARED HIS POLISH ROOTS AND SAW MR KOPETSKI AS A USEFUL EMISSARY TO JUNIOR LAWMAKERS HE SCARCELY KNEW KOPETSKI HAS REALLY WORKED THE CHAIRMAN SAYS A ROSTENKOWSKI AIDE HE'S CONSTANTLY SAYING LET'S GO TO DINNER LET'S DO STUFF' THERE WERE DINNERS AT CHAIRMAN DANNY'S SPECIAL TABLE AT MORTON'S OF CHICAGO A GEORGETOWN STEAKHOUSE THE STROKING PAID OFF MR KOPETSKI EVEN SWEETTALKED THE CHAIRMAN INTO HOSTING A FUNDRAISER IN OREGON FOR HIS REELECTION THERE REP ROSTENKOWSKI ANNOUNCED MR KOPETSKI WOULD GAIN THE COVETED SEAT ON THE TAXWRITING PANEL THAT MADE THE BALDING JUNIOR LAWMAKER A STAR ACCORDING TO THE MORES OF INSIDER WASHINGTON SUDDENLY THERE WERE TICKETS TO EXCLUSIVE EVENTS LIKE THE ROCKTHEVOTE INAUGURAL BASH WHICH MR KOPETSKI ATTENDED COURTESY OF THE MOTION PICTURE ASSOCIATION OF AMERICA THE HOLLYWOOD LOBBY WITH VITAL TAX INTERESTS AT THE PARTY THE OREGONIAN NEWSPAPER REPORTED THERE WERE BELLES IN BLACK FORMALS FAWNING OVER MIKE KOPETSKI BEING ON WAYS AND MEANS ALSO MEANT GOING TO FIVE OR SIX RECEPTIONS EVERY NIGHT MR KOPETSKI SAYS HE LEARNED HOW TO WORK THE CROWDS YOU GO IN FIND THE PERSON YOU NEED SAY HELLO AND LEAVE THESE EFFORTS HAVE HELPED HIM REAP IN MORE THAN 65000 IN POLITICALACTION CONTRIBUTIONS FROM CORPORATE INTERESTS THIS YEAR AT SUCH RECEPTIONS THERE ALMOST ALWAYS IS FREEFLOWING ALCOHOL SUPPLIED BY LOBBY GROUPS WASHINGTONIANS IMBIBE TWICE AS MUCH AS DRINKERS IN THE REST OF THE COUNTRY ACCORDING TO THE NATIONAL INSTITUTE ON ALCOHOL ABUSE AND ALCOHOLISM THE WHOLE CULTURE WITH THE WAY THERE ARE POWER LUNCHES POWER DINNERS AND RECEPTIONS MAKES DRINKING STILL THE NORM SAYS SARAH KAYSON DIRECTOR FOR PUBLIC POLICY AT THE NATIONAL COUNCIL ON ALCOHOLISM MR KOPETSKI HAD A BAD ENCOUNTER WITH ALCOHOL LAST MARCH HE SAYS HE GOT LOST DRIVING TO HIS CONDOMINIUM IN ALEXANDRIA VA AFTER HAVING DINNER AND WINE WITH FRIENDS HE WAS ARRESTED IN A PUBLICHOUSING COMPLEX WITHIN BLOCKS OF HIS HOME TRIAL TESTIMONY SHOWED HIS BLOODALCOHOL LEVEL WAS 12 PERCENTABOVE VIRGINIA'S LEGAL LIMIT OF 10 HE WAS CONVICTED OF A REDUCED CHARGE OF RECKLESS DRIVING HE HAD NO PREVIOUS DRUNKENDRIVING ARRESTS AND SAYS HE ISN'T A PROBLEM DRINKER A PSYCHOLOGIST TESTIFIED THAT THERE IS NO EVIDENCE OR INDICATORS THAT MR KOPETSKI IS PROBLEMATICALLY INVOLVED WITH ALCOHOL MR KOPETSKI SAYS THAT THIS WAS NOT RELATED TO THE STRESS AND STRAINS OF WASHINGTON THOUGH THE ARREST CAME AFTER ONE OF HIS MOST OVERSCHEDULED WEEKS BUT FOR ALL HIS WORK MR KOPETSKI STILL FOUND LITTLE REWARD HE FOUGHT LONG HOURS TO WIN CONCESSIONS FOR HIS STATE'S ALUMINUM PRODUCERS FROM PRESIDENT CLINTON'S PROPOSED ENERGY TAX ONLY TO SEE HIS EFFORTS MADE MOOT BY THE DEMISE OF THE TAX THE DEBACLE IN SOMALIA REMINDED HIM OF SEN MORSE'S STAND ON VIETNAM AND HE WANTED TO VOTE FOR EARLY TROOP WITHDRAWAL BUT A CALL FROM SPEAKER FOLEY PERSUADED HIM TO BACK DOWN AND SUPPORT THE PRESIDENT LIKE MOST POLITICIANS MR KOPETSKI CRAVED PUBLIC APPROVAL BUT FOUND A CYNICAL PUBLIC AND A WARY PRESS SELDOM WILLING TO PROVIDE IT DURING A TOWN MEETING LAST SPRING WHEN HE PUT UP CHARTS TO EXPLAIN THE DIFFERENT TAX PROPOSALS HIS CONSTITUENTS SHOUTED THEIR RIDICULE IT WAS A LONG WAY FROM HIS STATELEGISLATOR DAYS WHEN MOTHERS HAD CHEERED HIS EFFORTS FROM THE GALLERY WHY THE HELL WOULD I LIE HE LATER GROUSED TO HIS BROTHER HIS EFFORTS TO HELP OREGON BUSINESSES AND TO WIN APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT EARNED HIM DERISION FROM HIS FORMER LABOR FRIENDS THEY LABELED HIM NIKE MIKEY FOR SUPPORTING THE OREGON FOOTWEAR COMPANY AND EVEN THOUGH HE HAD APOLOGIZED FOR THE DRUNKENDRIVING ARREST MR KOPETSKI FACED TOUGH QUESTIONS ABOUT IT DURING A STOP AT A SENIORCITIZENS CENTER IN ESTACADA ORE DURING HIS DISTRICT APPEARANCES SOME OREGON REPORTERS IN A FEEDING FRENZY PURSUING SEXUAL MISCONDUCT ALLEGATIONS AGAINST SEN ROBERT PACKWOOD WERE ALSO POKING INTO MR KOPETSKI'S PERSONAL LIFE SEARCHING FOR A SCANDAL IT'S A SHAME HE COULDN'T GO BEFORE THE VOTERS AND SAY I MADE A MISTAKE SAYS JACK VALENTI HOLLYWOOD'S CHIEF LOBBYIST AND A WASHINGTON VETERAN BUT VOTERS ARE SO AGITATED THEY ARE UNWILLING TO GIVE PEOPLE A SECOND CHANCE FINALLY MR KOPETSKI SAYS HE SAW THE TRAVAILS OF HIS OREGON COLLEAGUE AS A FRIGHTENING WARNING ABOUT STAYING INSIDE THE WASHINGTON CULTURE TOO LONG AT THE END OF IT ALL HE SAYS SADLY HE SAW THAT HE COULD END UP LIKE BOB PACKWOOD WITH A VERY LIMITED LIFE ESPECIALLY IF HE STAYED AND LET THE TOWN TAKE OVER AND LET INSTITUTIONS TAKE OVER HIS ENTIRE LIFE IN SOME WAYS THEY HAVE EVEN IN ANNOUNCING HIS DEPARTURE MR KOPETSKI ACTED LIKE A WASHINGTON INSIDER HIS BIGGEST REGRET HE HAS TOLD REPORTERS IS NOT SEEING A CAPITALGAINS TAX CUT ENACTED THE MOST DIFFICULT PART OF HIS DECISION WAS TELLING DANNY ROSTENKOWSKI WHO IMPLORED HIM TO THINK ABOUT IT LONGER BUT FRIENDS HAVE SEEN SIGNS OF THE OLD KOPETSKI SINCE HIS ANNOUNCEMENT RECENTLY HE SPENT FOUR DAYS HUNTING WITH HIS BROTHER AND HIS SON WHO IS NOW 17 AND IN A SPEECH TO DEMOCRATS IN PORTLAND LAST MONTH HE TALKED ABOUT NOTHING BUT HIS OLD HERO WAYNE MORSE I THINK IT HIT HIM EVEN THOUGH HE WAS GAINING POWER AND VISIBILITY AND FAME WHAT HAPPENED TO THE IDEALISM THAT POSSESSED HIM ALL THOSE YEARS SAYS PETER COURTNEY WHO HOLDS MR KOPETSKI'S OLD SEAT IN THE OREGON LEGISLATURE IT WAS ALL GONE 9312150025 931215 WILL CONGRESS TOUCH ARKANSAS BANKING THE FOLLOWING IS AN EXCHANGE OF LETTERS BETWEEN REPS JIM LEACH AND HENRY GONZALEZ RESPECTIVELY THE RANKING MINORITY MEMBER AND THE CHAIRMAN OF THE HOUSE BANKING COMMITTEE ON A POTENTIAL INVESTIGATION OF A FAILED LITTLE ROCK SAVINGS AND LOAN OWNED BY A FORMER BUSINESS PARTNER OF PRESIDENT AND MRS CLINTON A RELATED EDITORIAL APPEARS NEARBY SEE RELATED ARTICLE REVIEW & OUTLOOK EDITORIAL ON ETHICS ARKANSAS ANXIETIES WSJ DEC 15 1993 I AM IN RECEIPT OF YOUR LETTER DATED DEC 9 1993 REGARDING MADISON GUARANTY SAVINGS & LOAN AND WOULD LIKE TO TAKE THIS OPPORTUNITY TO RESPOND RESPECTFULLY TO YOUR POINT THAT MADISON'S FAILURE FOLLOWS A FAMILIAR PATTERN AND THERE IS NO INFORMATION SUGGESTING IT WAS A UNIQUE CASE OR ONE THAT PRESENTS LEGISLATIVE ISSUES NOT PREVIOUSLY ADDRESSED OR ANY ISSUES NOW PENDING BEFORE THE COMMITTEE I WOULD DISAGREE WITH THAT ASSESSMENT AND EMPHASIZE THE EXCEPTIONAL CIRCUMSTANCES CONCERNING BOTH THE FAILURE AND RESOLUTION OF MADISON WHICH APPEAR ATYPICAL AND CALL OUT FOR CONGRESSIONAL REVIEW ONE OF THE MOST IMPORTANT CONSTITUTIONAL ROLES OF THE CONGRESS IS TO PROVIDE OVERSIGHT AND I WAS ENCOURAGED BY YOUR STATEMENT AT THIS MORNING'S HEARING THAT THE COMMITTEE HAS NOT COMPLETED ITS REVIEW OF THE THRIFT DEBACLE OF THE GREATEST GOVERNMENTAL FAILURES OF THE LAST 20 YEARS ONE THAT STANDS OUT IS THAT OVERSIGHT HAS BEEN TOO LAX NOT TOO VIGOROUS IF WE FAIL TO PURSUE OUR CONSTITUTIONALLY GIVEN OVERSIGHT RESPONSIBILITIES WE ARE IN EFFECT GIVING A PERMISSIVE GREEN LIGHT TO THOSE WHO WANT TO FUDGE THE LAW OR SET ASIDE ETHICS THE MINORITY FEELS STRONGLY THAT THERE ARE A NUMBER OF LEGISLATIVE ASPECTS THAT RELATE DIRECTLY TO THE FAILURE AND RESOLUTION OF MADISON GUARANTY FIRST REORGANIZATION OF THE BANKING REGULATORY STRUCTURE HAS RECEIVED HIGH PRIORITY ON THE ADMINISTRATION'S AND THE COMMITTEE'S AGENDA BASED ON NEWS ACCOUNTS ALONE THE ABUSE OF STATE POWERS AND FAILURE OF STATE REGULATION THAT APPEAR TO EXIST IN THE MADISON CASE WARRANTS INVESTIGATION IN THE CONTEXT OF ADDRESSING REFORM OF THE REGULATORY STRUCTURE SECOND AS YOU KNOW CONGRESS RECENTLY APPROVED WHAT IS HOPED TO BE THE FINAL INSTALLMENT TO SHORE UP THE DEPOSIT INSURANCE SYSTEM FOR SAVINGS AND LOANS ALTHOUGH THE OVERALL COST TO THE TAXPAYERS FOR MADISON'S FAILURE IS RELATIVELY SMALL THE PERCENTAGE OF DOLLAR LOSS TO TOTAL ASSETS IS UNUSUALLY HIGH IN FACT THE COST OF MADISON'S FAILURE EQUALED NEARLY 50 OF THE INSTITUTION'S TOTAL ASSETS THIRD IT IS APPARENT THAT MADISON WAS ALLOWED TO CONTINUE IN EXISTENCE AS A PRIVATE PIGGY BANK DESPITE ITS INSOLVENT CONDITION HERE MADISON BEARS DIRECT RELEVANCE TO WHETHER CONGRESS INSISTS ON EARLY INTERVENTION AND RESOLUTION OF TROUBLED INSTITUTIONS AS WELL AS ISSUES RELATED TO FINANCIAL INSTITUTION INSOLVENCY AS YOU KNOW CONGRESS IS NOW CONSIDERING THE REPEAL OR MODIFICATION OF MANY OF THE EARLY INTERVENTION AND SAFETY AND SOUNDNESS PROVISIONS OF THE FEDERAL DEPOSIT INSURANCE CORP IMPROVEMENT ACT IN YOUR LETTER YOU STATE THAT MADISON GUARANTY WAS PLACED UNDER REGULATORY SURVEILLANCE EARLY ON APPROPRIATE DISCIPLINARY MEASURES WERE PUT IN PLACE AND THE INSTITUTION CLOSED WHEN CONSERVATION EFFORTS FAILED UNFORTUNATELY THIS IS NOT THE CASE FEDERAL REGULATORS NOTED SEVERE PROBLEMS WITH MADISON'S CONDITION IN 1984 YET FROM 1984 TO 1986 MADISON GREW FROM A 49 MILLION INSTITUTION TO A 125 MILLION INSTITUTION FOURTH AS IN THE CASE OF BNL GOVERNMENT GUARANTEES OF PRIVATE LOANS WERE REPORTEDLY ABUSED WITH ALLEGATIONS THAT SMALL BUSINESS ADMINISTRATION GUARANTEES WERE IMPROPERLY OBTAINED AND USED BY MADISON OFFICIALS IT IS MY UNDERSTANDING THAT THE SMALL BUSINESS COMMITTEE HAS FOUND THIS ISSUE ALONE SUFFICIENT TO CONDUCT A COMMITTEE INVESTIGATION I BELIEVE THE BANKING COMMITTEE HAS A GREATER LEGISLATIVE INTEREST IN THE MADISON CASE THAN OUR SISTER COMMITTEE FIFTH DURING MR JAMES MCDOUGAL'S TENURE AT MADISON IT WAS REPORTED THAT LOANS TO OFFICERS DIRECTORS AND EXECUTIVES INCREASED FROM 500000 TO 17 MILLION WITH SUCH A DRAMATIC GROWTH IN LOANS TO INSIDERS THE COMMITTEE SHOULD INVESTIGATE WHETHER SPURTS IN GROWTH OF AN INSTITUTION'S LOANS TO INSIDERS SHOULD BE A LEGISLATIVE CONCERN OR AT LEAST SERVE AS A WARNING TO THE REGULATORS MOREOVER ABSENT AN INVESTIGATION THE COMMITTEE WILL NOT BE PERMITTED TO KNOW HOW THE REGULATORS RESPONDED TO THIS ISSUE DURING THEIR EXAMINATIONS OF MADISON SIXTH IT APPEARS MADISON PAID ITS REAL ESTATE SUBSIDIARY SUBSTANTIAL COMMISSIONS FOR LAND SALES INCLUDING PAYMENTS OF MORE THAN 712000 DURING A THREE YEAR PERIOD TO MR MCDOUGAL'S WIFE SUSAN AND TWO OF HER BROTHERS JAMES AND WILLIAM THE COMMITTEE SHOULD DETERMINE WHETHER INSIDER FINANCIAL ARRANGEMENTS SHOULD BE SUBJECT TO GREATER SCRUTINY AGAIN ABSENT A REVIEW OF REGULATORY DOCUMENTS THE COMMITTEE WILL NOT BE PERMITTED TO KNOW HOW THE REGULATORS RESPONDED TO THIS ISSUE DURING THEIR EXAMINATIONS OF MADISON SEVENTH IT APPEARS THAT MADISON'S LEGAL DOCUMENTS WERE SO POOR THAT IN MANY CASES EXAMINERS COULD NOT DETERMINE THE REAL NATURE OF THE TRANSACTIONS THE COMMITTEE NEEDS TO DETERMINE IF THERE SHOULD BE A BASE STANDARD FOR AN INSTITUTION IN KEEPING ADEQUATE LEGAL DOCUMENTS EIGHTH IT APPEARS IMPROPER ACCOUNTING TECHNIQUES WERE USED TO DISGUISE SOLVENCY PROBLEMS THE COMMITTEE NEEDS TO DETERMINE IF THESE ACCOUNTING PRACTICES ARE STILL BEING USED BY SOME FINANCIAL INSTITUTIONS NINTH AFTER MADISON'S FAILURE THE LATE VINCE FOSTER OF THE ROSE LAW FIRM SOLICITED LEGAL WORK FROM THE FDIC TO SUE MADISON ROSE WAS SELECTED TO PURSUE MADISON'S ACCOUNTANTS FROST & CO ROSE SETTLED THE 60 MILLION SUIT FOR 1 MILLION SOURCES CLAIM THAT THE 1 MILLION WAS BELOW FROST'S INSURANCE COVERAGE ROSE BILLED THE GOVERNMENT 400000 FOR ITS WORK WEBSTER HUBBELL NOW ASSOCIATE ATTORNEY GENERAL WAS THE LEAD ATTORNEY IN THE CASE HIS FATHERINLAW WAS AN OFFICER OF A SUBSIDIARY OF MADISON AND IN FACT WAS ONE OF MADISON'S LARGEST BORROWERS HUBBELL'S FATHERINLAW DID NOT REPAY 587793 IN LOANS TO MADISON FDIC OFFICIALS HAVE SAID THAT THEY WERE NOT AWARE OF THE ROSE LAW FIRM'S WORK ON BEHALF OF MADISON BEFORE IT WAS HIRED THE COMMITTEE MUST EXAMINE THE LACK OF INTERNAL CONTROLS AT THE FDIC WITH RESPECT TO ITS ENFORCEMENT OF CONFLICT OF INTEREST RULES IN THE HIRING OF OUTSIDE ATTORNEYS NOT ONLY HAD ROSE WORKED FOR MADISON BUT THE LEAD ATTORNEY HAD A RELATIVE DEEPLY IN DEBT TO THE INSTITUTION HOW COULD THIS HAVE ESCAPED THE KNOWLEDGE OF FDIC OFFICIALS WITHOUT A COMMITTEE INVESTIGATION WE CANNOT DETERMINE THE ADEQUACY OF THE FDIC'S PAST AND CURRENT PROCEDURES FOR DISQUALIFYING FIRMS WITH CONFLICTS TENTH THE RESOLUTION TRUST CORP HAS MADE A CRIMINAL REFERRAL TO THE JUSTICE DEPARTMENT WHICH INCLUDES ALLEGATIONS THAT CORPORATE FUNDS MAY HAVE BEEN USED BY MADISON FOR POLITICAL PURPOSES AS YOU KNOW CORPORATE CONTRIBUTIONS BY FEDERALLY CHARTERED INSTITUTIONS ARE BARRED BY FEDERAL ELECTION LAW THE MADISON CASE RAISES THE ISSUE OF WHETHER STATE CHARTERED FEDERALLY INSURED INSTITUTIONS SHOULD ALSO HAVE THE SAME RESTRICTION FINALLY THE FROST & CO AUDIT THAT WAS USED BY THE ROSE FIRM TO HELP KEEP MADISON IN BUSINESS IN 1985 FAILED TO DISCLOSE THAT FROST'S CHIEF AUDITOR OF MADISON JAMES ALFORD HAD TWO OUTSTANDING LOANS AT MADISON AT THE TIME OF THE AUDIT THE COMMITTEE NEEDS TO DETERMINE WHETHER OR NOT FEDERAL BANKING REGULATORS SHOULD BE BARRED FROM ACCEPTING AN AUDIT FROM AN INDIVIDUAL OR FIRM INDEBTED TO THE INSTITUTION SO MUCH MORE IS NEEDED TO BE KNOWN ABOUT MADISON AND AS YOU HAVE SAID SO OFTEN THE PUBLIC HAS A RIGHT TO KNOW THE ABOVE LIST IS NOT AN EXHAUSTIVE OUTLINE OF THE ISSUES PRESENTED BY THE MADISON CASE WHICH BEAR RELEVANCE TO THE COMMITTEE'S JURISDICTION BUT IS A CURSORY OVERVIEW OF CIRCUMSTANCES BASED ON NEWS REPORTS WHICH INDICATE A DIRECT LINK TO THE COMMITTEE'S LEGISLATIVE INTERESTS ABOVE ALL CONGRESS HAS AN OBLIGATION TO THE AMERICAN PUBLIC TO ENSURE THAT NO AMERICAN WHATEVER HIS OR HER POSITION IS ABOVE PUBLIC ACCOUNTABILITY AND THE RULE OF THE LAW I HAVE PERUSED YOUR LENGTHY LETTER OF DEC 9 1993 SLIPPED UNDER MY DOOR LATE LAST EVENING LET ME REITERATE THAT I FULLY UNDERSTAND THAT POLITICAL OPERATIVES WITHIN YOUR PARTY ARE EXERTING TREMENDOUS PRESSURE ON YOU TO LINK THE FAILURE OF MADISON BANK DIRECTLY TO THE PRESIDENT EVEN TO THE POINT OF RAISING AN INSENSITIVE REFERENCE TO THE SAD CASE OF THE LATE VINCE FOSTER SINCE THE VERY FIRST DAY OF MY CHAIRMANSHIP I HAVE STRIVED ON A BIPARTISAN BASIS TO STUDY AND RECTIFY THE TYPES OF REGULATORY ABUSE ISSUES IDENTIFIED IN YOUR LETTER I DO NOT BELIEVE I NEED TO DETAIL HOW THE BANKING COMMITTEE UNDER MY CHAIRMANSHIP HAS SUCCESSFULLY ADDRESSED THROUGH OVERSIGHT AND LEGISLATION THE ISSUES YOU RAISE REGARDLESS OF THE POLITICAL AFFILIATION OF THE INDIVIDUALS INVOLVED HOWEVER I WILL NEVER PERMIT THE BANKING COMMITTEE TO BECOME AN INSTRUMENT OF ANY PARTY'S DESIRE TO CONDUCT A PURELY POLITICAL FISHING EXPEDITION REST ASSURED THE COMMITTEE WILL CONTINUE TO REVIEW THIS MATTER BUT AGAIN I WILL NOT PERMIT REPUBLICAN POLITICAL OPERATIVES TO SET THE AGENDA OF THE HOUSE BANKING COMMITTEE 9312150023 931215 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN GET READY FOR SLIMMER PAYCHECKS STARTING IN JANUARY THAT IS WHEN NEW WITHHOLDING TABLES TAKE EFFECT REFLECTING HIGHER TAX RATES UNDER THE LAW SIGNED BY PRESIDENT CLINTON IN AUGUST WHILE THE LAW'S NEW RATES OF 36 AND 396 WERE RETROACTIVE TO LAST JAN 1 EMPLOYERS WEREN'T REQUIRED TO INCREASE THEIR 1993 WITHHOLDING NOW MANY UPPERINCOME TAXPAYERS WILL FEEL THE IMPACT AS WITHHOLDING TAKES A BIGGER BITE OUT OF PAYCHECKS A SINGLE EXECUTIVE WITH ADJUSTED GROSS INCOME OF 200000 WILL HAVE ABOUT 2300 MORE IN INCOME TAXES WITHHELD IN 1994 THAN IN 1993 SAYS CLINT STRETCH OF DELOITTE & TOUCHE A MARRIED COUPLE WITH TWO CHILDREN AND WITH INCOME OF 250000 FROM ONE WAGEEARNER WILL HAVE ABOUT 3000 MORE WITHHELD IN INCOME TAXES IN 1994 THESE TWO EXAMPLES ASSUME TYPICAL DEDUCTION AMOUNTS STARTING NEXT MONTH THE NEW LAW ALSO REPEALS A CAP ON WAGES AND SELFEMPLOYMENT INCOME SUBJECT TO THE MEDICARE PAYROLL TAX MANY SOCIAL SECURITY RECIPIENTS ALSO WILL OWE MORE TAXES ON THEIR BENEFITS NEXT YEAR BECAUSE OF THE NEW LAW SOME TAX BENEFITS FOR 1994 WILL INCREASE SLIGHTLY BECAUSE OF INFLATION THE STANDARD DEDUCTION PERSONAL EXEMPTIONS AND OTHER TAX ITEMS ARE LINKED EACH YEAR TO THE COST OF LIVING THUS TAXPAYERS CAN LOOK FORWARD TO SMALL BREAKS ON 1994 RETURNS FOR EXAMPLE PERSONAL EXEMPTIONS FOR 1994 WILL RISE BY 100 TO 2450 THE IRS SAYS THE STANDARD DEDUCTION FOR MARRIED COUPLES WILL INCREASE 150 TO 6350 FOR SINGLES IT WILL RISE 100 TO 3800 FOR MARRIED COUPLES THE 15 TAX BRACKET WILL EXTEND UP TO TAXABLE INCOME OF 38000 A 1100 RISE FROM 1993 THE 28 BRACKET WILL EXTEND FROM 38000 TO 91850 A 2700 RISE FOR SINGLES THE 15 BRACKET RISES 650 TO 22750 AND THE 28 BRACKET RISES 1600 TO 55100 THE PERSONAL EXEMPTION PHASEOUT WILL START FOR MARRIED COUPLES WITH INCOME OVER 167700 UP FROM 162700 FOR SINGLES IT STARTS AT INCOME OVER 111800 UP FROM 108450 THE ITEMIZEDDEDUCTION LIMIT WILL HIT TAXPAYERS WITH INCOME OVER 111800 UP FROM THE 1993 LEVEL OF 108450 LAWYERS PROTEST AN IRS MOVE TO IMPOSE STIFF PENALTIES THE IRS SAID LAST WEEK IT WILL PENALIZE SOME LAWYERS WHO DELIBERATELY REFUSE TO IDENTIFY CLIENTS WHO PAY THEM CASH FEES OF MORE THAN 10000 IN ONE TRANSACTION OR TWO OR MORE RELATED TRANSACTIONS PENALTIES START AT 25000 OR THE CASH RECEIVED IN EACH TRANSACTION WHICHEVER IS GREATER UP TO 100000 BUT THE NATIONAL ASSOCIATION OF CRIMINAL DEFENSE LAWYERS URGES THE IRS AND JUSTICE DEPARTMENT TO RECONSIDER LAWYERS INSIST THIS POLICY WILL FORCE THEM TO BREACH THE CONFIDENTIALITY OF THE LAWYERCLIENT RELATIONSHIP AND UNFAIRLY EXPOSE CLIENTS TO PROSECUTION THE IRS IS CREATING A TENSION BETWEEN OBEYING CAESAR'S LAW AND GOD'S LAW SAYS JOHN HENRY HINGSON III AN OREGON LAWYER AND PRESIDENT OF THE CRIMINALDEFENSE LAWYERS GROUP SOME LAWYERS PREDICT THE IRS PLAN WILL BE OVERTURNED IN COURT BUT OTHERS FEAR NEW LEGISLATION MAY BE NEEDED THIS IS A TROUBLESOME DEVELOPMENT FOR THE DEFENSE BAR SAYS JAMES BRUTON OF WILLIAMS & CONNOLLY IN WASHINGTON BUT THE IRS SAYS IT SIMPLY IS ENFORCING A LAW THAT HELPS DETECT NONFILERS UNREPORTED INCOME AND MONEY LAUNDERING OFTEN LINKED TO NARCOTICS WAKEUP CALL SET UP A KEOGH PLAN BY DEC 31 TO SHELTER SELFEMPLOYMENT INCOME SUCH AS CONSULTING FEES OR FREELANCE WRITING PAY CONTRIBUTIONS DON'T HAVE TO BE MADE UNTIL THE RETURN IS DUE IN APRIL OR LATER WITH EXTENSIONS CONTRIBUTIONS ARE DEDUCTIBLE IN 1993 AND THE MONEY GROWS TAXDEFERRED NEVADA COLLECTS ABOUT 25 MILLION FROM 1800 BUSINESSES IN A TEMPORARY AMNESTY ON USE TAXES THAT ARE DUE ON OUTOFSTATE PURCHASES THE STATE DIDN'T CHARGE INTEREST OR PENALTIES DURING THE AMNESTY WHICH ENDED LAST MONTH OHIO STATE WON'T MAKE THE ROSE BOWL THIS YEAR BUT A FOURSTUDENT TEAM DID WIN THE UNDERGRADUATE DIVISION OF TAX CHALLENGE 1993 A COMPETITION SPONSORED BY ARTHUR ANDERSEN THE UNIVERSITY OF NORTH TEXAS WON THE GRADUATE DIVISION SUPPORT GROWS FOR ALLOWING THE IRS TO IMPOSE NEW SANCTIONS ON SOME CHARITIES THE IRS NEEDS NEW WEAPONS TO PENALIZE CHARITIES THAT ABUSE THEIR TAXEXEMPT STATUS SOME LAWMAKERS AND TAX ADVISERS SAY LAVISH SALARIES AND PERKS ALLEGEDLY PAID TO SOME CHARITY INSIDERS DRAW CONGRESSIONAL FIRE THE IRS NOW CAN REVOKE A GROUP'S TAX EXEMPTION BUT TYPICALLY HESITATES TO DO SO EXCEPT IN CASES OF MAJOR ABUSES SAYS RICK SPEIZMAN OF PRICE WATERHOUSE ONE POSSIBLE SOLUTION ALLOW THE IRS TO IMPOSE LESSDRASTIC PENALTIES SUCH AS AN EXCISE TAX CHANCES ARE GOOD FOR PASSAGE OF A LAW NEXT YEAR AUTHORIZING THESE INTERMEDIATE SANCTIONS SAYS MICHAEL PEREGRINE A LAWYER AT GARDNER CARTON & DOUGLAS IN CHICAGO REP STARK D CALIF HAS INTRODUCED A BILL TO AUTHORIZE NEW SANCTIONS BUT SOME OPPOSE GIVING THE IRS MORE POWER THEY FEAR THAT GROUPS MAKING HONEST COMPLIANCE ERRORS WOULD BE PENALIZED UNFAIRLY BRIEFS THE CHRISTMAS SPIRIT THE TREASURY HISTORICAL ASSOCIATION A PRIVATE NONPROFIT GROUP IS FLOODED BY ORDERS FOR ITS CHRISTMASTREE ORNAMENT DECORATED WITH A MINIATURE 1913 INCOMETAX FORM MENTIONED IN A RECENT DAVE BARRY COLUMN HO HO HO THE CAPITOL STEPS A SATIRICAL SINGING GROUP OFFERS AN ALBUM OF CHRISTMAS CAROLS SUCH AS ALL WE GOT FOR CHRISTMAS IS A TAX INCREASE O LITTLE ROCK OF ARKANSAS ROSTY THE CHAIRMAN AND SANTA CLAUS'S BUDGET IS DOWN 9312150022 931215 INTERNATIONAL BRIEF TRAFALGAR HOUSE PLC YEAR'S LOSS WIDENS SHARPLY ON WRITEDOWNS CHARGES UK PROPERTY CONSTRUCTION AND TRANSPORT GROUP TRAFALGAR HOUSE PLC SAID ITS PRETAX LOSS FOR THE YEAR ENDED SEPT 30 SHARPLY WIDENED TO 3472 MILLION 5173 MILLION FROM 112 MILLION AFTER 3973 MILLION OF PROPERTY WRITEDOWNS AND RESTRUCTURING CHARGES SALES WERE 388 BILLION UNCHANGED THE COMPANY SAID IT SEES NO IMPROVEMENT UNTIL 1995 TO STRENGTHEN ITS BALANCE SHEET THE GROUP ANNOUNCED A RIGHTS ISSUE AND THE PLACING OF NEW CONVERTIBLE PREFERENCE SHARES WHICH WILL RAISE 404 MILLION THE PROCEEDS ALSO WILL BE USED TO REPAY BORROWINGS AND TO PROVIDE AN EQUITY AND LIQUIDITY BASE FOR THE ENGINEERING AND CONSTRUCTION BUSINESSES PROVIDE RESOURCES FOR MAJOR INFRASTRUCTURE PROJECTS WORLDWIDE FINANCE IMPROVEMENT OF THE CUNARD FLEET AND THE HOTELS AND HELP REPLENISH RESIDENTIAL LAND BANKS 9312150021 931215 WHAT'S NEWS BUSINESS AND FINANCE TRADE NEGOTIATORS FROM THE US AND EUROPE RESOLVED REMAINING DISPUTES PAVING THE WAY FOR APPROVAL OF A GATT ACCORD THE PACT WILL SHARPLY CUT AVERAGE TARIFFS GLOBALLY BUT WON'T RESULT IN A BROAD OPENING OF MARKETS TO THE SERVICE SECTOR US EFFORTS TO WHITTLE EUROPEAN AIRCRAFT SUBSIDIES STALLED AND ATTEMPTS WERE UNSUCCESSFUL TO OPEN MARKETS FOR HOLLYWOOD AND FINANCIAL FIRMS PARAMOUNT'S BOARD AGREED TO AUCTION THE COMPANY WITH BIDS DUE NEXT MONDAY THE MOVE TO COMPLY WITH A DELAWARE COURT EFFECTIVELY ENDS AN ACQUISITION AGREEMENT WITH VIACOM RETAIL SALES ROSE 04 IN NOVEMBER THE EIGHTH CONSECUTIVE MONTHLY INCREASE AND ANOTHER SIGN THAT CONSUMERS ARE BACK IN A BUYING MOOD STRONG SALES OF FURNITURE APPAREL AND BUILDING MATERIALS HELPED BOOST SALES NORTH AMERICANBUILT VEHICLE SALES FELL MODERATELY IN EARLY DECEMBER BUT US AUTO MAKERS REMAIN BULLISH AND ARE PLANNING SIZABLE PRODUCTION INCREASES FOR THE FIRST QUARTER OF 1994 CLINTON SAID IT WOULD BE A MISTAKE FOR THE FED TO INCREASE SHORTTERM INTEREST RATES BECAUSE THERE ISN'T A TREND TOWARD INFLATION IN THE ECONOMY OIL PRICES EDGED UP ON NEWS THAT OMAN PLANS TO TRIM ITS OUTPUT UP TO 10 TO PROP UP OIL PRICES MCDONNELL DOUGLAS IS EXPECTED TO SETTLE FOR UNDER 400 MILLION FROM THE MILITARY FOR CHANGES ON THE C17 AN AMOUNT LESS THAN THE 155 BILLION THE DEFENSE FIRM SAID IT WAS OWED EDWARD DEBARTOLO POSTPONED PLANS TO RAISE ABOUT 600 MILLION BY SELLING A MAJORITY STAKE IN 51 MALLS JAPAN'S TRADE SURPLUS NARROWED LAST MONTH FOR THE FIRST TIME IN NEARLY THREE YEARS PROMPTING ANALYSTS TO SAY THE SURPLUS MAY SHRINK NEXT YEAR FORD EXPECTS ITS EUROPEAN OPERATIONS TO BE PROFITABLE NEXT YEAR AFTER THREE CONSECUTIVE YEARS IN THE RED PAUL MOZER WAS SENTENCED TO FOUR MONTHS IN PRISON AND FINED 30000 FOR HIS ROLE IN THE 1991 TREASURY AUCTION BIDDING SCANDAL WHILE AT SALOMON CHARLES KNAPP WAS SENTENCED TO 6 1/2 YEARS AND MUST PAY 11 MILLION FOR DUPING A THRIFT INTO A 15 MILLION LOAN BURGER KING PLANS A REORGANIZATION TO TRIM COSTS CUT STAFF AND IMPROVE SERVICE AT THE GRAND MET UNIT KENDALL SQUARE'S BOARD FORCED OUT THE SUPERCOMPUTER FIRM'S PRESIDENT SIGNALING A KEY ROLE FOR ITS CHAIRMAN AEA INVESTORS AGREED TO BUY TWO CRUISE LINES FROM KLOSTER CRUISE A UNIT OF NORWAY'S VARD FOR 565 MILLION KLOSTER PLANS TO USE PROCEEDS OF THE ROYAL VIKING AND ROYAL CRUISE SALE TO SHORE UP ITS NORWEGIAN CRUISE LINE AETNA NAMED THREE EXECUTIVE VICE PRESIDENTS SETTING UP A HORSE RACE TO SUCCEED THE CHAIRMAN AND CEO WHO PLANS TO RETIRE IN 1997 BONDS LEHMAN BROTHERS TREASURY INDEX 550557 OFF 3045 COMMODITIES OIL 1452 A BARREL UNCHANGED DOW JONES FUTURES INDEX 13913 OFF 008 SPOT INDEX 12486 UP 063 DOLLAR 10935 YEN UP 040 17138 MARKS UP 00053 9312150020 931215 TEXAS JOURNAL WINNERS & LOSERS DALLAS LAWYERS THE US JUSTICE DEPARTMENT IS NO LONGER INVESTIGATING SIX BIG DALLAS LAW FIRMS THE PROBE REPORTEDLY CENTERED ON ALLEGATIONS OF SALARY PRICEFIXING GERALD HINES THE HOUSTON DEVELOPER BOUGHT ASPEN HIGHLANDS SKI AREA IN COLORADO AFTER MONTHS OF HAGGLING WITH LOCAL AUTHORITIES TIMID THRILLSEEKERS FIESTA TEXAS OPERATOR OF THE WORLD'S TALLEST WOODEN ROLLER COASTER WILL REDESIGN THE RATTLER TO MAKE IT LESS STRESSFUL THE COMPANY FACES LAWSUITS FROM RIDERS ALLEGEDLY INJURED ALAMODOME DIRT LEFT BEHIND AFTER CONSTRUCTION OF SAN ANTONIO'S NEW DOMED STADIUM CONTAINS LARGE CHUNKS OF LEADCONTAMINATED SLAG TNRCC THE ENVIRONMENTAL AGENCY'S FAILURE TO BUDGET 6 MILLION FOR RENT THROUGH NEXT AUGUST WILL DELAY THE IMPLEMENTATION OF SOME INITIATIVES TERRI HOFFMAN THE SELFPROCLAIMED DALLAS PSYCHIC WHO IS UNDER INVESTIGATION FOR THE DEATHS OF 10 FOLLOWERS WAS ORDERED TO DIVEST MOST OF HER PROPERTY TO PAY CREDITORS 9312150019 931215 LAW LEGAL BEAT DELAWARE SAYS NEW YORK OWES IT 891 MILLION OF UNCLAIMED FUNDS BY PAUL M BARRETT AND MARJ CHARLIER STAFF REPORTERS OF THE WALL STREET JOURNAL DELAWARE HAS CALCULATED THAT NEW YORK OWES IT 891 MILLION FOR UNCLAIMED DIVIDENDS AND INTEREST HELD BY NEW YORK BROKERAGE FIRMS IN A FOLLOWUP TO A US SUPREME COURT DECISION LAST MARCH NEW YORK OFFICIALS HAD ESTIMATED THE TAB AT 300 MILLION TO 350 MILLION AFTER THE HIGH COURT RULED THAT DELAWARE HAS THE RIGHT TO COLLECT TWO DECADES' WORTH OF THESE DIVIDENDS AND INTEREST WHEN THE BROKERAGE HOUSES HOLDING THE ASSETS ARE INCORPORATED IN DELAWARE BUT DELAWARE NOW CLAIMS THE CORRECT FIGURE IS MUCH HIGHER BECAUSE OF INTEREST THAT HAS ACCRUED ON THE AMOUNT THAT THE STATE SAYS IT IS OWED NEW YORK DISPUTES DELAWARE'S APPROACH THE CASE IS PENDING BEFORE A NEUTRAL EXPERT KNOWN AS A SPECIAL MASTER APPOINTED BY THE SUPREME COURT WHILE THAT LITIGATION CONTINUES THERE IS ACTIVITY IN CONGRESS THAT COULD NEGATE DELAWARE'S HIGHCOURT VICTORY AND SPREAD THE DISPUTED ASSETS TO MORE STATES LEGISLATION THAT WOULD GIVE STATES OTHER THAN NEW YORK AND DELAWARE A CRACK AT THE MONEY HAS PICKED UP CONSIDERABLE SUPPORT IN BOTH HOUSES AND IS EXPECTED TO MOVE FORWARD NEXT YEAR ACCORDING TO LAWYERS FOR THE OTHER STATES THE SUPREME COURT CASE INVOLVED DIVIDENDS AND INTEREST COLLECTED BY NEW YORK SINCE 1972 FROM BROKERAGE AND BANK ACCOUNTS WHOSE OWNERS COULDN'T BE LOCATED NEW YORK TOOK THE MONEY ON THE THEORY THAT IT COULD ASSUME OWNERSHIP OF PROPERTY ABANDONED WITHIN THE STATE IN A SMALL FRACTION OF SECURITIES TRANSACTIONS BROKERS RECEIVE INCOME RELATED TO STOCKS AND BONDS WHOSE OWNERS CAN'T BE FOUND THIS OCCURS FOR EXAMPLE IF STOCK HAS BEEN SOLD BUT THE ISSUING COMPANY MISTAKENLY SENDS A DIVIDEND TO THE FORMER OWNER'S BROKER SUCH ERRORS ADD UP TO TENS OF MILLIONS OF DOLLARS A YEAR DELAWARE SUED NEW YORK IN 1988 DEMANDING A SHARE OF THE UNCLAIMED DISTRIBUTIONS DELAWARE CONTENDED THAT THE STATE IN WHICH BROKERAGE FIRMS ARE INCORPORATED OUGHT TO BE THE ONE THAT COLLECTS THE ABANDONED ASSETS MANY MAJOR BROKERAGE FIRMS ARE INCORPORATED IN DELAWARE BECAUSE OF THE STATE'S FAVORABLE CORPORATE LAWS AND WELLREGARDED COURT SYSTEM IN ITS RULING IN MARCH THE SUPREME COURT ESSENTIALLY AGREED WITH DELAWARE'S POSITION THE HIGH COURT REJECTED THE ARGUMENT MADE ON BEHALF OF MOST OTHER STATES THAT RIGHTS TO COLLECT UNCLAIMED DIVIDENDS AND INTEREST SHOULD BE BASED ON THE LOCATION OF THE COMPANY THAT ISSUED THE UNDERLYING STOCK OR BOND THE SUPREME COURT DIDN'T SPECIFY THE PRECISE DISTRIBUTION OF THE UNCLAIMED ASSETS LEAVING THOSE CRITICAL DETAILS TO BE SORTED OUT IN FURTHER PROCEEDINGS BEFORE THE SPECIAL MASTER THOMAS JACKSON A COMMERCIALLAW EXPERT AND SENIOR ADMINISTRATOR AT THE UNIVERSITY OF VIRGINIA ON MONDAY DELAWARE FILED ITS PAPERS DEMANDING THAT NEW YORK TURN OVER 432 MILLION IN CASH DIVIDENDS AND SECURITIES AS WELL AS 459 MILLION IN INTEREST SINCE 1972 NEW YORK'S CHIEF LAWYER JERRY BOONE SAID IN AN INTERVIEW THAT HE WILL SUBMIT A RESPONSE ARGUING THAT DELAWARE ISN'T ENTITLED TO THE INTEREST AND IF IT IS THAT THE AMOUNT OF INTEREST SHOULD BE SMALLER MR BOONE ALSO STRESSED THAT HE IS STILL TRYING TO PERSUADE THE SPECIAL MASTER THAT NEW YORK CAN IDENTIFY THE LAST KNOWN ADDRESS OF SOME OF THE ACTUAL OWNERS OF THE DISPUTED ASSETS AND THAT MANY OF THOSE ADDRESSES WILL TURN OUT TO BE IN NEW YORK THE SUPREME COURT LEFT OPEN THIS POSSIBILITY IN ITS RULING AS A WAY FOR NEW YORK TO RETAIN SOME OF THE MONEY AT ISSUE IT ISN'T CLEAR HOW NEW YORK WOULD PAY THE BILL IF DELAWARE ULTIMATELY PREVAILS THE STATE CURRENTLY HAS ONLY 206 MILLION SET ASIDE FOR POTENTIAL HIGHSTAKES LEGAL LOSSES MEANWHILE THE US HOUSE AND SENATE ARE EXPECTED EARLY NEXT YEAR TO TAKE UP LEGISLATION PUSHED BY MOST OTHER STATES THAT COULD FORCE NEW YORK TO DISTRIBUTE ROUGHLY 800 MILLION ON THE BASIS OF WHERE SECURITIESISSUING COMPANIES HAVE THEIR HEADQUARTERS BERNARD NASH A WASHINGTON LAWYER REPRESENTING 31 STATES SAID HIS CLIENTS HAVE SECURED BROAD BIPARTISAN SUPPORT FOR THE LEGISLATION THAT WOULD EFFECTIVELY SET ASIDE THE SUPREME COURT'S DECISION A STATE DISTRICTCOURT JUDGE IN DENVER STRUCK DOWN COLORADO'S CONSTITUTIONAL AMENDMENT PROHIBITING STATE AND LOCAL GOVERNMENTS FROM PASSING LAWS TO PROTECT HOMOSEXUALS JUDGE JEFFREY BAYLESS'S RULING WAS EXPECTED BECAUSE OF HIS EARLIER PRELIMINARY RULING DELAYING ENACTMENT OF THE AMENDMENT THE RULING WHICH MAKES THE PRELIMINARY INJUNCTION PERMANENT WILL BE APPEALED TO THE STATE'S SUPREME COURT ALTHOUGH THE DECISION HAS NO EFFECT BEYOND THE STATE'S BOUNDARIES BOTH PROAND ANTIGAY FORCES ARE EXPECTED TO USE THE RULING IN FORMULATING FUTURE LEGAL ARGUMENTS OVER GAY RIGHTS THIS RULING PLAYS AN IMPORTANT ROLE IN ALL THE LITIGATION NATIONWIDE SAID SUZANNE GOLDBERG ATTORNEY FOR THE GAYRIGHTS GROUP LAMBDA LEGAL DEFENSE AND EDUCATION FUND AND COCOUNSEL FOR PLAINTIFFS IN THE CASE AMENDMENT 2 WAS PASSED BY COLORADO VOTERS IN NOVEMBER 1992 AND TRIGGERED A BOYCOTT ORGANIZED BY GAYRIGHTS ACTIVISTS IN NEW YORK NINE INDIVIDUALS INCLUDING ASPEN RESIDENT AND TENNIS STAR MARTINA NAVRATILOVA PLUS THREE CITIES A SCHOOL DISTRICT AND A CITY COUNCIL SUED IN DISTRICT COURT IN DENVER TO STOP THE AMENDMENT FROM TAKING EFFECT IN HIS OPINION JUDGE BAYLESS TOOK HIS CUE FROM AN EARLIER COLORADO SUPREME COURT RULING THAT UPHELD HIS PRELIMINARY INJUNCTION OF AMENDMENT 2 IN GRANTING THE INJUNCTION MR BAYLESS HAD RULED THAT THERE WAS A LIKELIHOOD THAT THE PLAINTIFFS WOULD PREVAIL BY SHOWING THAT THE AMENDMENT VIOLATED A FUNDAMENTAL RIGHT NOT TO HAVE THE STATE ENDORSE AND GIVE EFFECT TO PRIVATE BIASES THE SUPREME COURT AGREED THAT A FUNDAMENTAL RIGHT HAD BEEN ABRIDGED BY THE AMENDMENT BUT IDENTIFIED IT INSTEAD AS THE FUNDAMENTAL RIGHT OF AN IDENTIFIABLE GROUP TO PARTICIPATE IN THE POLITICAL PROCESS IN HIS RULING YESTERDAY JUDGE BAYLESS ACCEPTED THAT INTERPRETATION BECAUSE A FUNDAMENTAL RIGHT WAS VIOLATED BY THE AMENDMENT THE STATE MUST SHOW A COMPELLING REASON FOR THAT VIOLATION THE JUDGE RULED HE THEN REJECTED FIVE OF SIX COMPELLING REASONS OUTLINED BY THE STATE'S ATTORNEY GENERAL GAIL NORTON THE SIXTH REASON PREVENTION OF GOVERNMENTAL INTERFERENCE WITH PERSONAL FAMILIAL AND RELIGIOUS PRIVACY WAS FOUND TO BE A COMPELLING REASON THE JUDGE SAID BUT THE AMENDMENT DIDN'T MEET THE NEXT CRITERIA OF BEING NARROWLY ENOUGH DRAFTED TO PASS CONSTITUTIONAL MUSTER THIS WILL SHOW PROPONENTS OF THE ANTIGAY INITIATIVES AROUND THE COUNTRY THAT THEY CANNOT USE THE POLITICAL PROCESS TO TAKE AWAY GAY AND LESBIAN RIGHTS SAID MS GOLDBERG BUT THE RULING WASN'T A TOTAL WIN FOR HOMOSEXUALS LIKE OTHER JUDGES WHO HAVE RULED ON THE ISSUE MR BAYLESS DECLINED TO ACCEPT THE PLAINTIFFS' ARGUMENT THAT HOMOSEXUALS ARE A SUSPECT CLASS ENTITLED TO STRICTER SCRUTINY WHEN THEIR RIGHTS ARE AT ISSUE THE JUDGE SAID HE COULDN'T CONCLUDE THAT HOMOSEXUALS OR BISEXUALS REMAIN VULNERABLE OR POLITICALLY POWERLESS ONE OF THE CRITERIA FOR A SUSPECT CLASS INSTEAD HE SAID THE FACT THAT A GROUP REPRESENTING ONLY 4 OF THE POPULATION WAS ABLE TO GARNER THE SUPPORT OF 46 OF THE POPULATION AS THEY DID IN THE VOTE ON AMENDMENT 2 IS A DEMONSTRATION OF POWER NOT POWERLESSNESS 9312150018 931215 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE TO 1111 IN THE LATEST WEEK FROM 11096 A WEEK EARLIER LARGELY ON THE STRENGTH OF IMPROVED INITIAL UNEMPLOYMENT CLAIMS TEXAS REFINERY OUTPUT MEANWHILE FELL SLIGHTLY FROM THE PRIOR WEEK WHILE OTHER INDICATORS WERE UNCHANGED THE RATE OF ANNUAL GROWTH IN THE TEXAS INDEX FELL TO 313 FROM 316 IN THE YEAREARLIER PERIOD 9312150017 931215 AVIALL ADDED TO DOW JONES INDEX NEW YORK AVIALL INC IS BEING ADDED TO THE OTHER INDUSTRIAL AND COMMERCIAL INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY THE COMPANY WAS SPUN OFF FROM RYDER SYSTEM INC 9312150016 931215 BUSINESS BRIEF BELL ATLANTIC CORP TRICON CAPITAL CORP SPINOFF IS BEING PLANNED BY A UNIT BELL ATLANTIC INVESTMENTS INC A UNIT OF BELL ATLANTIC CORP OF PHILADELPHIA PLANS TO SPIN OFF ITS TRICON CAPITAL CORP IN AN INITIAL PUBLIC OFFERING VALUED AT AS MUCH AS 351 MILLION IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION TRICON SAID IT PLANS TO OFFER 135 MILLION COMMON SHARES AT A MAXIMUM 26 APIECE OF THE SHARES BEING REGISTERED 108 MILLION WILL BE OFFERED IN THE US WHILE THE REMAINING 27 MILLION WILL BE SOLD INTERNATIONALLY TRICON BASED IN PARAMUS NJ PROVIDES COMMERCIAL FINANCE AND EQUIPMENT LEASING SERVICES AND HAD REVENUE OF 2423 MILLION IN 1992 ACCORDING TO THE FILING TRICON HAS ABOUT 75000 CUSTOMER ACCOUNTS LEHMAN BROTHERS AND SALOMON BROTHERS WILL UNDERWRITE THE OFFERING THE OVERALLOTMENT OPTION IS FOR 800000 SHARES THE 135 MILLION SHARES BEING OFFERED REPRESENT ALL OF TRICON'S COMMON STOCK OUTSTANDING ACCORDING TO THE FILING 9312150014 931215 LEISURE & ARTS THE GALLERY WORKS OF ITALY AND ISLAM BY FREDERIKA RANDALL VENICE THE TROUBLE WITH VENICE AS GERTRUDE STEIN MIGHT HAVE SAID IS THAT THERE IS NO THEM THERE THEM BEING THE VENETIANS THE NATIVE HUMAN COMPONENT OF A PLACE THAT COULDN'T BE MORE GLORIOUSLY THERE IN JUST THE WAY STEIN THOUGHT OAKLAND CALIF WASN'T WELL THERE ARE STILL A FEW OF THEM BUT DAMP REAL ESTATE HIGH PRICES AND SCARCE EMPLOYMENT HAVE NOW DRIVEN THE PERMANENT LAGOON POPULATION DOWN TO LESS THAN 70000 SO THAT IF A REFERENDUM TO DIVORCE WATER VENICE FROM THE MAINLAND DISTRICT OF MESTRE PASSES IN FEBRUARY THIS WILL BE A VERY SMALL TOWN INDEED A SMALL TOWN IN WHICH THE RICH MIX OF ACCENTS FROM MILAN BERLIN PARIS NEW YORK LOS ANGELES THREATENS TO COMPLETELY DROWN OUT THE LOCAL VENETO TWANG WITH ITS LOOPY CADENCES AND THICK GREASING OF S'S NOW VENICE'S NEWLY ELECTED ADMINISTRATION LED BY MAYOR MASSIMO CACCIARI HAS A HOST OF PROBLEMS TO TACKLE POPULATION FLIGHT OVERDEPENDENCE ON TOURISM AND AN UNHEALTHY UNREAL ATMOSPHERE OF DISNEY WORLD ON THE ADRIATIC JUST TO NAME A FEW THEY ARE PROBLEMS THAT ALSO HAVE IMPLICATIONS FOR VENICE'S ART SCENE I THOUGHT TO MYSELF AFTER VISITING TWO CURRENT MUSEUM SHOWS MODIGLIANI FROM THE COLLECTION OF DR PAUL ALEXANDRE INCLUDES MORE THAN 400 NEVERBEFOREEXHIBITED DRAWINGS BELONGING TO A FRENCH DOCTOR WHO WAS LIVORNOBORN AMEDEO MODIGLIANI'S FRIEND AND PRACTICALLY HIS ONLY PATRON BETWEEN 1906 AND 1914 IN PARIS MODIGLIANI UNDERWRITTEN BY MAROT SA OF BRUSSELS RUNS THROUGH JAN 4 AT PALAZZO GRASSI AFTER WHICH THE SHOW TRAVELS TO THE ROYAL ACADEMY IN LONDON TO COLOGNE BRUGGE TOKYO MONTREAL NEW YORK AND MADRID BEFORE THE COLLECTION RETURNS TO FRANCE ARCHITECT GAE AULENTI DID THE INSTALLATION LENDING A COSMOPOLITAN GLOSS THAT IS TYPICAL OF THE FIAT GROUPOWNED PALAZZO GRASSI SO CLEAN MODERN AND GENERALLY USERFRIENDLY COMPARED WITH THE PROVINCIAL NEGLECTED FEEL OF MANY ITALIAN MUSEUMS IT'S ALL SO ATTRACTIVE AND FUNCTIONS SO SMOOTHLY ONE ALMOST FEELS IT WOULD BE CHURLISH TO SAY THAT A THE PREVIOUS SHOW ON MARCEL DUCHAMP HAD MUCH THE SAME OVERALL LOOK AND B THE CONTENT TURNS OUT TO BE SLIGHTER THAN THE STYLISH FRAME WOULD INDICATE IN FACT MOST OF THESE DRAWINGS ARE JUST QUICK SKETCHES STUDIES OF CARYATIDS OF STYLIZED FEMALE HEADS INFLUENCED BY AFRICAN AND KHMER SCULPTURE OF SINUOUS NUDES THERE ARE MANY OF THESE SO THAT ALMOST COMICALLY PRECISE TITLES ARE NEEDED TO DISTINGUISH FEMALE NUDE LYING ON HER LEFT SIDE ON A COUCH HANDS BY HER NECK FROM VARIATIONS WITH THE HANDS IN A DIFFERENT POSE SOME OF THE WORKS HAVE A LOT OF CHARM BUT NOT ENOUGH I NOTICED TO INDUCE THE AVERAGE VIEWER TO LINGER MORE THAN ABOUT 20 MINUTES FROM THE START OF THE SHOW TO THE FINISH EXCEPT FOR TWO FINE SCULPTED HEADS BORROWED FROM AMERICAN COLLECTIONS THE MOST RIVETING THINGS HERE MAY BE THE PERIOD PHOTOS INCLUDING MODIGLIANI IN A CLASSIC PORTRAIT OF THE ARTIST WITH FLOWING SCARF CLOSE UP THE HANDSOME ARTIST'S GAZE APPEARS TO BE COMPOSED OF ONE DREAMY EYE AND ONE STEELY HARD ONE MODIGLIANI DOES SUCCEED IN HIGHLIGHTING THE ARTIST'S CHARISMA THE BOHEMIAN YEARS IN PARIS UNTIL HIS EARLY DEATH FROM TUBERCULOSIS AND ALCOHOL IN 1920 HIS CIRCLE OF FRIENDS RANGING FROM BRANCUSI TO THE RUSSIAN POET ANNA AKHMATOVA HIS LOVERS INCLUDING THE YOUNG JEANNE HEBUTERNE WHO KILLED HERSELF AT HIS DEATH SO THE TWO COULD LIE TOGETHER IN PERELACHAISE CEMETERY ALL TOGETHER THE SHOW GRAVITATES INTENSELY AROUND THE HALLOWED GROUND OF PARIS IT'S LIKE EXITING AN EXOTIC CULTURAL HOTHOUSE WHEN YOU HEAD ACROSS TOWN TO THE PALAZZO DUCALE TO HAVE A LOOK AT THE HERITAGE OF ISLAM ISLAMIC ART IN ITALY UNTIL APRIL 30 SPONSORED BY THE CITY OF VENICE AND CURATED BY GIOVANNI CURATOLA HERE YOU ARE DEFINITELY BACK ON VENETIAN TERRITORY WITH A FASCINATING IF NOT TERRIBLY WELLMOUNTED SELECTION OF ISLAMIC ART AND DECORATION FROM ITALIAN MUSEUMS AND PRIVATE COLLECTIONS THE SHOW INCLUDES POTTERY ROCK CRYSTAL BRASS AND BRONZE WORK CARPETS AND SILK AND WOOL FABRICS JUST TO TAKE ONE EXAMPLE THE 15TH CENTURY17TH CENTURY TURKISH FABRICS ARE WONDERFUL WITH GIANT BOLD STENCILLIKE DESIGNS OR STYLIZED FLORAL PATTERNS IN STRONG COLORS AN INTRIGUING NUMBER OF THESE OBJECTS ARE CATHOLIC CHURCH PROPERTY BOOTY BROUGHT BACK BY CRUSADERS AS WHEN THE VENETIANS SACKED CONSTANTINOPLE IN 1204 OR NOBLEMEN'S OFFERINGS TO THE CHURCH THE EGYPTIAN ROCKCRYSTAL CANDELABRA AND BOTTLES THAT BELONG TO THE TREASURIES OF SAN MARCO IN VENICE AND SAN LORENZO IN FLORENCE OTHER ITEMS TESTIFY TO THE LONG HISTORY OF CONTACT BETWEEN ITALY AND THE MUSLIM WORLD POTTERY FROM THE ARABIC OCCUPATION OF SICILY A MAMLUK WOOLEN CARPET IN A GEOMETRIC PATTERN OF RED GREEN AND BLUE THAT WAS PART OF THE MEDICI HOUSEHOLD AS EARLY AS 1567 ON THE NEGATIVE SIDE THE DOGES' PALACE EXHIBITION ROOMS ARE ABOUT AS LIGHT AND NEUTRAL AS ITS FAMOUS DUNGEONS WHILE AS SO OFTEN HAPPENS IN ITALY THE SHOW'S IMPRESSIVE SCHOLARSHIP ON MUSLIM ARTISTIC TRADITIONS COMES OFF IN A STIFF ACADEMIC WAY YET YOU ONLY HAVE TO WANDER THROUGH THE REST OF THE PALACE WITH ITS PAINTINGS OF THE BATTLE OF LEPANTO AND ITS COLLECTIONS OF BEAUTIFULLY DECORATED PERSIAN WEAPONS TO APPRECIATE HOW DEEP IS THE IMPRINT OF THE MUSLIM EAST ON VENICE AND IN FACT THIS CITY'S FUTURE CONTINUES TO FACE EAST TOWARD THE BALKANS AND ASIA MINOR SO THAT EXHIBITS LIKE THE HERITAGE OF ISLAM PROBABLY DO MORE TO STRENGTHEN THE CITY'S CULTURAL IDENTITY THAN GLAMOROUS SHOWS LIKE MODIGLIANI THAT FACE TOWARD PARIS BUT FIRST PUBLICART AUTHORITIES HAD BETTER TAKE A FEW LESSONS IN STYLE AND MUSEUM MANAGEMENT FROM THEIR SOPHISTICATED FRENCH COUSINS 9312150013 931215 WORLD TRADE TALKS DEVELOPING NATIONS FEEL SHORTCHANGED BY GATT BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA FOR WEEKS THEY HAVE BEEN ON THE OUTSIDE LOOKING IN WHILE THE US AND THE EUROPEANS HAVE BEEN ARGUING OVER WHO GETS WHAT PIECE OF THE WORLDTRADE PIE DEVELOPING COUNTRIES HAVE WONDERED WHAT'S IN IT FOR THEM NOW FOR SOME THE ANSWER IS CLEAR THE CRUMBS THEY'RE TRYING TO DECIDE THE FATE OF THE WORLD BETWEEN THE TWO OF THEM SAYS LILIA BAUTISTA THE PHILIPPINES NEGOTIATOR AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN THIS WHOLE ROUND OF TRADE TALKS WE ARE THE GIVERS ADDS A SOUTH AMERICAN NEGOTIATOR WHO ASKS NOT TO BE IDENTIFIED THE US AND THE EC ARE SHOVING THINGS DOWN OUR THROATS IT'S JUST RIDICULOUS MAYBE EXPECTATIONS WERE TOO HIGH STILL MOST FEEL THEY HAVE LITTLE CLOUT AND THUS MUST GO ALONG ALTHOUGH DIFFERENT DEVELOPING COUNTRIES ENTERED THE TALKS WITH DIFFERENT AGENDAS MOST DEPEND LARGELY ON TEXTILES AND AGRICULTURAL GOODS FOR THEIR EXPORTS IN BOTH AREAS TRADE BARRIERS WILL FALL AS A RESULT OF THE PROPOSED ACCORD BUT NOT NEARLY AS FAR OR AS FAST AS THE DEVELOPING COUNTRIES HAD SOUGHT THAT'S UPSETTING TO THEM BECAUSE MOST WERE PERSUADED BY THE US AND EUROPE TO ENTER THE NEW ROUND OF TALKS IN 1986 WITH PROMISES OF MAJOR CONCESSIONS ON AGRICULTURE FOR EXAMPLE DEVELOPING COUNTRIES HOPED THAT MAJOR WESTERN NATIONS WOULD TOTALLY DROP SUBSIDIES FOR THEIR PRODUCERS LOWER TARIFFS SHARPLY AND OPEN MARKETS BY EASING QUOTAS INSTEAD THEY ARE HAVING TO SETTLE FOR MUCH LESS IN ALL THREE AREAS BRAZIL IS A LARGE AND EFFICIENT EXPORTER OF SOYBEANS POULTRY AND OILSEEDS SAYS LUIZ FELIPE PALMEIRA LAMPREIA BRAZIL'S NEGOTIATOR AT GATT BECAUSE THE ACCORD DOESN'T GO AS FAR AS BRAZIL EXPECTED HE ADDS THERE WILL BE MORE SUBSIDIZED EXPORTS FROM DEVELOPED COUNTRIES ON THE MARKET FOR THE NEXT FEW YEARS AND THAT WILL COST US JOBS AND EXPORTS THE OUTCOME ON TEXTILES IS SIMILAR INCREASES IN WESTERN IMPORT QUOTAS SOUGHT BY INDIA AND PAKISTAN AMONG OTHERS WILL BE PHASED IN OVER 10 YEARS WITH MOST OF THE CHANGE COMING TOWARD THE END OF THE PERIOD MOREOVER DEVELOPING COUNTRIES ARE BEING ASKED TO LOWER THEIR RESTRICTIONS ON IMPORTS OF TEXTILES FROM THE INDUSTRIALIZED WORLD WHILE THAT MAY SOUND ONLY FAIR AN INDIAN NEGOTIATOR WHO DIDN'T WANT TO BE IDENTIFIED SAYS THAT IT DOESN'T MAKE SENSE IN THE BROAD SCHEME OF THINGS WITH LIMITED WEALTH THE MORE LINGERIE THAT INDIA BUYS FROM THE US HE REASONS THE LESS MONEY IT WILL HAVE FOR THINGS THAT US MAKES WELL SUCH AS AIRPLANES DEVELOPING COUNTRIES ALSO MOAN THAT THEY WON FEW CONCESSIONS ON SPECIFIC PRODUCTS WHERE THEY ARE COMPETITIVE A MAJOR TUNA EXPORTER THE PHILIPPINES HAD HOPED FOR SHARP TARIFF REDUCTIONS ON FISH WE'RE GETTING LARGE TARIFF CUTS FROM SOME COUNTRIES BUT NOT FROM THE US AND THE EC SAYS MS BAUTISTA SOME NATIONS FEEL AGGRIEVED OVER WOOD PRODUCTS THE US AND EUROPE ARE ELIMINATING TARIFFS ON WOOD IMPORTS BUT THERE ARE EXCEPTIONS A FEW COUNTRIES SUCH AS MALAYSIA WON'T BENEFIT FROM THE CUTS THAT'S BECAUSE THEY HAVE EXPORT RESTRICTIONS IN PART TO PROTECT THEIR TROPICAL FORESTS FROM OVERCUTTING AND IN PART SO THAT MORE RAW LUMBER IS PRODUCED INTO FINISHED PRODUCTS BEFORE EXPORT SOME DEVELOPED COUNTRIES ALSO RESTRICT SOME WOOD EXPORTS BUT STILL WILL SEE TARIFFS REDUCED TO ZERO ONE ASIAN OFFICIAL NOTES THEY SINGLED OUT OUR TROPICAL WOOD IT'S A CLEAR DISCRIMINATION IN SOME CASES DEVELOPING COUNTRIES THAT NOW ENJOY PREFERENTIAL TREATMENT ARE DISMAYED BECAUSE THEY WILL LOSE SOME OF THAT ADVANTAGE THE ISLAND NATION OF MAURITIUS OFF EAST AFRICA NOW HAS UNLIMITED ENTRY INTO EUROPE FOR ITS TEXTILE EXPORTS BECAUSE OF A BILATERAL TRADE AGREEMENT WITH INDUSTRIALIZED COUNTRIES LOWERING THEIR TEXTILE IMPORT BARRIERS OVER A 10YEAR PERIOD MAURITIUS EVENTUALLY WILL LOSE ITS ADVANTAGE AND HAVE TO BEGIN COMPETING WITH MORE EFFICIENT PRODUCERS IN INDIA AND PAKISTAN WE ARE NOT VERY HAPPY SAYS GIREESH PADYA A MAURITIUS REPRESENTATIVE IN GENEVA IT WOULD BE RATHER DIFFICULT FOR US TO COPE WITH COMPETITION FROM ASIA BUT THERE IS VERY VERY VERY LITTLE WE CAN DO TO SWAY NEGOTIATIONS A HANDFUL OF DEVELOPING COUNTRIES THOSE WITH THE MOST ADVANCED AND DIVERSIFIED ECONOMIES BELIEVE THEY WILL BE BETTER OFF EVEN IF THEY AREN'T TOTALLY SATISFIED THOUGH UNHAPPY WITH THE AGRICULTURE AGREEMENT FOR EXAMPLE BRAZIL IS PLEASED WITH THE TARIFF CUTS ON INDUSTRIAL PRODUCTS WE HAVE GAINED IN EXCESS OF 40 TARIFF REDUCTIONS IN SOME AREAS MR PALMEIRA LAMPREIA SAYS AS A RESULT HE ADDS WE ARE CERTAINLY NOT PREPARED TO WALK AWAY FROM THE ROUND CHILE'S GATT NEGOTIATOR ERNESTO TIRONI NOTES THAT THE AGREEMENT TO STRENGTHEN PATENT PROTECTION WILL HAVE SOME COSTS TO HIS AND OTHER COUNTRIES AND CHILEAN FARMERS WON'T BENEFIT AS MUCH AS HOPED BUT OVERALL THE AGREEMENT STILL WILL BE A NET BENEFIT TO CHILE BECAUSE THE AVERAGE TARIFF FACED BY OUR EXPORTS WILL BE FALLING FROM 10 TO 6 IN THE CASE OF THE US AND 17 TO 12 IN THE CASE OF JAPAN 9312150012 931215 WHAT'S NEWS WORLDWIDE YELTSIN CAME UNDER PRESSURE FROM EXTREME NATIONALISTS TO ALTER HIS REFORMS RUSSIA'S NATIONALIST AND COMMUNIST POLITICIANS BUOYED BY THEIR ELECTION LEAD DEMANDED THAT THE PRESIDENT REVISE HIS ECONOMIC POLICIES WITH 90 OF THE ELECTION DISTRICTS REPORTING THE EXTREME NATIONALIST LIBERAL DEMOCRATIC PARTY WAS FAR OUT IN FRONT WITH 24 OF THE VOTE IN SUNDAY'S ELECTION THE MAIN PROYELTSIN GROUP RUSSIA'S CHOICE WAS IN SECOND PLACE WITH 15 SAVORING VICTORY LIBERAL DEMOCRATIC LEADER ZHIRINOVSKY SAID HIS PARTY EXPECTED TO PLAY A MAJOR ROLE IN FORMING A NEW GOVERNMENT AND THAT HE WAS READY TO JOIN AN ALLIANCE WITH OTHER PARTIES ZHIRINOVSKY SAID HE HOPED TO DECLARE THESE DARK TIMES ARE OVER IN RUSSIA THAT ALL THESE REFORMS THAT GREATLY HURT OUR PEOPLE ARE OVER AN EPA SMOGCONTROL PLAN WILL INCREASE THE USE OF CORNDERIVED ETHANOL IN MOTOR FUEL SUBSTANTIALLY THE PLAN TO BE UNVEILED TOMORROW IS A VICTORY FOR FARM STATES WHICH HAVE URGED THE WHITE HOUSE TO FAVOR ETHANOL AND IS LIKELY TO GIVE A BOOST TO ARCHERDANIELSMIDLAND CO WHICH DOMINATES THE ETHANOL MARKET A JUDGE IN DENVER STRUCK DOWN COLORADO'S CONSTITUTIONAL AMENDMENT PROHIBITING STATE AND LOCAL GOVERNMENTS FROM PASSING LAWS TO PROTECT HOMOSEXUALS THE RULING WHICH MADE THE JUDGE'S PRELIMINARY INJUNCTION PERMANENT HAS NO EFFECT OUTSIDE THE STATE GAY ACTIVISTS APPLAUDED THE RULING AND THE STATE SAID IT PLANNED AN APPEAL SEN PACKWOOD ALTERED DIARY TAPE RECORDINGS SUBPOENAED BY THE ETHICS COMMITTEE SENATE LAWYERS SAID IN AN URGENT REQUEST THAT A COURT SEIZE THE MATERIALS THEY SAID THE PANEL NEEDED TAPES AND TRANSCRIPTS TO FIND OUT IF THE OREGON REPUBLICAN TRIED TO OBSTRUCT A PROBE OF ALLEGED MISCONDUCT RIGHTWING ISRAELI HECKLERS BOOED AND CURSED RABIN AT A GROUNDBREAKING CEREMONY FOR A PLANNED CITY MODI'IN INTENDED TO HOUSE 250000 ISRAELIS THE PROTESTERS OPPONENTS OF A PLO AUTONOMY ACCORD SHOUTED TRAITOR AND RESIGN AT THE PRIME MINISTER IN OCCUPIED GAZA TWO PALESTINIANS WERE KILLED AND 10 WOUNDED IN CLASHES THE FDA IS MOVING TO LIMIT MARKETING CLAIMS ABOUT VITAMINS MINERALS AND HERBS THOUGH THE HEALTHSUPPLEMENTS INDUSTRY HOPES TO QUASH THE ACTION SPECIFIC RULES TO BE RELEASED THIS MONTH AND TAKE EFFECT NEXT SPRING WILL LIMIT FIRMS TO MAKING CLAIMS BACKED BY BROAD SCIENTIFIC CONSENSUS THE NUMBER OF UNINSURED PEOPLE ROSE TO A RECORD 389 MILLION LAST YEAR IN THE US ACCORDING TO A REPORT BASED ON CENSUS BUREAU DATA THE FIGURE UP OVER TWO MILLION FROM 1991 AND UP 42 MILLION FROM 1989 IS LIKELY TO BE CITED BY THOSE WHO INSIST HEALTH LEGISLATION SHOULD GUARANTEE COVERAGE FOR ALL CALIFORNIA RESEARCHERS RAISED CONCERNS THAT VACCINES DESIGNED TO PREVENT THE SPREAD OF AIDS MIGHT END UP FURTHERING INFECTION BY MUTANT VIRUSES THE TEAM CITED THE POSSIBILITY THAT ANTIBODIES CREATED BY THE VACCINES MAY INACTIVATE SOME STRAINS BUT ALSO ENHANCE THE INFECTIOUS POWER OF OTHER STRAINS THE WORLD TRADE CENTER BOMB WAS NOT VERY ACCURATE ACCORDING TO A LETTER PROSECUTORS SAID WAS PREPARED BY THE ATTACKERS IN THE FEB 26 BLAST THAT KILLED SIX PEOPLE THE LETTER WHICH WAS NEVER MAILED HAD BEEN DELETED FROM A COMPUTER DISK BUT WAS STILL RETRIEVABLE FBI AGENTS TESTIFIED SERB SHELLING AND SNIPERS KILLED AT LEAST 11 PEOPLE IN SARAJEVO AS THE BOSNIAN CAPITAL EXPERIENCED ITS WORST FIGHTING IN MORE THAN A MONTH SERBMUSLIM CLASHES ALSO FLARED IN NORTHCENTRAL BOSNIA MEANWHILE THE INTERNATIONAL RED CROSS SAID CROATS RELEASED MORE THAN 800 MUSLIM PRISONERS FROM A CAMP NEAR MOSTAR IN SOUTHWEST BOSNIA THE LEADERS OF BRITAIN AND IRELAND SET A MEETING TODAY IN LONDON AS BOTH SIDES CLAIMED TO BE NEAR A COMMON APPROACH TO PEACE IN NORTHERN IRELAND PRIME MINISTER MAJOR AND IRISH LEADER REYNOLDS SCHEDULED THE NEW DISCUSSIONS AFTER TWO INTENSIVE BUT INCONCLUSIVE MEETINGS EARLIER THIS MONTH IN DUBLIN AND BRUSSELS ZIMBABWE PLANS TO SELL ITS 30000TON IVORY STOCKPILE TO RAISE MONEY FOR WILDLIFE CONSERVATION PROGRAMS THE STATE NEWS AGENCY SAID THE SALE WOULD BE IN DEFIANCE OF AN INTERNATIONAL BAN ON IVORY TRADE DIED MYRNA LOY 88 ACTRESS BEST KNOWN FOR PERFORMANCES IN THE THIN MAN MOVIES OF THE 1930S AND 1940S IN NEW YORK 9312150011 931215 ECONOMY SALES OF USMADE CARS LIGHT TRUCKS FALL SLIGHTLY BUT OUTPUT IS TO INCREASE BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL NORTH AMERICANBUILT CARS AND LIGHT TRUCKS SOLD AT A SEASONALLY ADJUSTED ANNUAL RATE OF 125 MILLION VEHICLES IN THE PERIOD FROM DEC 110 THAT'S DOWN SLIGHTLY FROM A 127 MILLIONVEHICLE SALES RATE IN THE PREVIOUS 30 DAYS BUT WELL AHEAD OF THE 114 MILLION SALES PACE OF EARLY DECEMBER 1992 THIS SLIGHT DOWNTURN IS NOTHING TO BE CONCERNED ABOUT SAID CHRISTOPHER CEDERGREN AN INDUSTRY CONSULTANT WITH AUTOPACIFIC GROUP INC OVERALL THE SALES LEVEL IS STILL VERY STRONG THE GENERAL UPWARD TREND IN US SALES IS ENCOURAGING THE 10 MAJOR US AUTO MAKERS TO PLAN ROBUST FIRSTQUARTER PRODUCTION SCHEDULES US AUTO MAKERS PLAN TO BUILD 1794594 CARS DURING THE FIRST QUARTER UP 161 FROM A YEAR EARLIER US LIGHTTRUCK PRODUCTION IS SCHEDULED TO INCREASE BY 185 TO 1400662 VEHICLES DURING THAT PERIOD INDUSTRY SOURCES SAY THE BIGGEST PRODUCTION INCREASES FOR THE FIRST QUARTER ARE COMING FROM DETROIT'S BIG THREE WHILE JAPANESE AUTO MAKERS ARE PROCEEDING A BIT MORE CAUTIOUSLY WITH PLANS FOR THEIR US PLANTS FOR THE FIRST QUARTER ALTOGETHER GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP PLAN AN 183 JUMP IN FIRSTQUARTER CAR AND TRUCK PRODUCTION JAPANESE AUTO MAKERS MEANWHILE HAVE SCHEDULED A 12 RISE IN VEHICLE PRODUCTION AT US PLANTS ANALYSTS SAY JAPANESE PRODUCTION INCREASES REFLECT A RECENT TREND TOWARD MORE AUTO ASSEMBLY IN THE US TO DILUTE THE EFFECTS OF THE SURGING YEN WHICH HAS PUSHED ALL JAPANESE PRICES HIGHER HONDA MOTOR CO FOR INSTANCE HAS SAID IT WILL EVENTUALLY STOP EXPORTS TO THE US OF ACCORD AND CIVIC CARS DETROIT IS BETTING THAT THE GROWING ECONOMY IMPROVED CONSUMER CONFIDENCE AND STRONGER EMPLOYMENT LEVELS WILL DRAW MORE AND MORE AMERICANS TO DEALER SHOWROOMS IN 1994 ADDITIONALLY THE PRODUCTION OF NEW MODELS WILL BE APPROACHING CAPACITY DURING THE FIRST QUARTER FOR INSTANCE CHRYSLER'S NEON SMALL CAR WILL BE RUNNING ON TWO SHIFTS DURING THE QUARTER FORD WILL BE ASSEMBLING ITS NEW WINDSTAR MINIVAN AND GM'S REDESIGNED LUMINA AND MONTE CARLO MODELS WILL BE LAUNCHED DURING THE JANUARYTOMARCH PERIOD AT THE SAME TIME DETROIT'S INVENTORIES ARE RELATIVELY LEAN AFTER SEVERAL MONTHS OF BRISK SALES AND CONSERVATIVE PRODUCTION SCHEDULES AS OF NOV 30 GM HAD A 62DAY SUPPLY OF CARS FORD HAD A 67DAY SUPPLY AND CHRYSLER HAD A 57DAY SUPPLY ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE JOURNAL A 65TO70 DAY SUPPLY IS CONSIDERED IDEAL THE RATE OF DEMAND GROWTH SEEMS TO BE ACCELERATING SAYS JOHN CASESA AN INDUSTRY CONSULTANT WITH WERTHEIM SCHRODER & CO THERE'S LITTLE RISK THAT THE INDUSTRY IS GETTING TOO OPTIMISTIC GM OUTPERFORMED ITS CROSSTOWN RIVALS IN EARLY DECEMBER THE AUTO MAKER'S TOTAL CAR AND TRUCK SALES ROSE 53 IN EARLY DECEMBER TO 109106 VEHICLES FORD'S CAR SALES FELL 53 IN THE DEC 110 PERIOD AND ITS TRUCK SALES ROSE 126 FORD'S CAR SALES WERE DRAGGED DOWN BY A LARGE DROP IN DEMAND FOR THE TAURUS WHICH WAS HEAVILY SUBSIDIZED A YEAR AGO AS FORD TRIED TO TOPPLE HONDA'S ACCORD AS THE BESTSELLING CAR IN AMERICA CHRYSLER'S TOTAL VEHICLE SALES WERE FLAT WITH A YEAR AGO ACCORDING TO AN ESTIMATE BY WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE JOURNAL JAPANESE AUTO MAKERS REPORTED MIXED SALES RESULTS IN EARLY DECEMBER HONDA SAW SALES FALL 163 TO 12457 VEHICLES AND TOYOTA MOTOR CORP'S SALES DROPPED 182 TO 19123 CARS AND TRUCKS NISSAN MOTOR CORP HOWEVER REPORTED A 263 JUMP IN SALES TO 6759 VEHICLES BOTH NISSAN AND HONDA PLAN TO INCREASE FIRSTQUARTER PRODUCTION ALTOGETHER AMERICANS BOUGHT 275972 NORTH AMERICANMADE CARS AND TRUCKS IN THE LATEST SALES PERIOD UP 53 FROM 261969 VEHICLES A YEAR EARLIER SALES OF MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS CONTINUED TO OUTPACE NEWCAR SALES LIGHTTRUCK SALES ROSE 94 IN EARLY DECEMBER WHILE CAR SALES EDGED UP 22 9312150010 931215 TEXAS JOURNAL FROM A TO C GRADING THE GOVERNOR BUSINESS REPORT CARD SHOWS HIGHER MARKS THAN MANY EXPECTED BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL THREE YEARS AGO NOBODY WOULD HAVE PREDICTED IT BUT IT'S TRUE GOV ANN RICHARDS IS WINNING PRAISE FROM TEXAS BUSINESS HER LATEST COUP CAME JUST LAST WEEK WHEN SHE MEDIATED THE DISPUTE BETWEEN APPLE COMPUTER INC AND WILLIAMSON COUNTY ENSURING THAT THE COMPANY WOULD MOVE SOME OF ITS OPERATIONS TO THE STATE WITHOUT HER INVOLVEMENT IT'S UNLIKELY THAT THE DIALOGUE WOULD HAVE CONTINUED SAYS BILL KEEGAN AN APPLE SPOKESMAN TEXAS BUSINESS LIKES GOV RICHARDS IT STILL SOUNDS JARRING TO MANY PEOPLE EVEN THOSE WHO AGREE WITH IT AND THE PRAISE CERTAINLY ISN'T UNANIMOUS BUT EVEN HER DETRACTORS CONCEDE THAT IN HER THREE YEARS AS GOVERNOR MS RICHARDS HAS PROVED TO BE THE STATE'S BEST SALESPERSON AND ITS MOST VISIBLE LOBBYIST SHE HAS GONE TO BAT FOR DEFENSE COMPANIES WOOED NEW EMPLOYERS TO THE STATE AND LOBBIED ON BEHALF OF ISSUES SUCH AS THE NORTH AMERICAN FREE TRADE AGREEMENT THAT BENEFIT TEXAS BUSINESS OVERALL SHE HAS TRIED TO DO THE THINGS THAT WOULD BE HELPFUL FOR BUSINESS AND THE ECONOMIC CLIMATE OF THE STATE SAYS KEN LAY A PROMINENT REPUBLICAN AND CHAIRMAN OF ENRON CORP HOUSTON I HAVE BEEN SOMEWHAT SURPRISED I DIDN'T EXPECT HER TO BE QUITE AS PROBUSINESS OR AS ACTIVE IN SUPPORTING BUSINESS AS SHE HAS BEEN BUT AS GOV RICHARDS ENTERS THE FINAL YEAR OF HER FIRST TERM HER REPORT CARD FROM BUSINESS ISN'T SPOTLESS SHE IS CRITICIZED FOR SOME OF HER APPOINTMENTS AND MANY INSURERS ARE STILL ANGRY OVER HER CRUSADE AGAINST INDUSTRY PRACTICES SHE IS ALSO FAULTED FOR NOT SHOWING MORE LEADERSHIP ON PUBLICEDUCATION FINANCING WORKERS' COMP AND TORT REFORM HERE'S HOW THE BUSINESS COMMUNITY GRADES GOV RICHARDS'S PERFORMANCE IN SEVERAL KEY AREAS GOV RICHARDS'S EFFORTS TO SALVAGE THE APPLE COMPUTER DEAL WITH WILLIAMSON COUNTY IS ONLY THE LATEST EXAMPLE OF HER ROLE AS THE STATE'S PREMIER SALESPERSON AND BEHINDTHESCENES LOBBYIST SHE CAN TAKE AT LEAST PARTIAL CREDIT FOR A NUMBER OF TROPHIES APPLE COMPUTER'S CUSTOMERSERVICE CENTER IN AUSTIN A VENTURE STORES REGIONAL DISTRIBUTION CENTER IN CORSICANA AND TRANSAMERICA INSURANCE GROUP'S RECENT MOVE TO IRVING SHE'S A GREAT PROMOTER SAYS GARY JACOBS CHIEF EXECUTIVE OF LAREDO NATIONAL BANK AND A FRIEND AND SUPPORTER OF FORMER PRESIDENT GEORGE BUSH IF SHE'S OUT SELLING TEXAS TO BUSINESS SHE'S GOING TO BRING MORE INDUSTRY TO TEXAS THE GOVERNOR'S TECHNIQUE IS SIMPLE SHE DOTES SHE CALLS COURTED EXECUTIVES AND OFFERS THE ASSISTANCE OF HER OFFICE THEN SHE WILL CALL AND CALL AND CALL UNTIL A PROSPECT IS HOOKED IT'S MORE THAN JUST PHOTO OPS SAYS APPLE'S MR KEEGAN SHE GOT TO KNOW OUR EXECUTIVES A CASE IN POINT WHEN STATE OFFICIALS LEARNED EARLY THIS YEAR THAT THE NEW BUYERS OF TRANSAMERICA INSURANCE GROUP A UNIT OF TIG HOLDINGS INC WERE CONSIDERING MOVING ITS NATIONAL SUPPORT CENTER FROM ORANGE COUNTY CALIF TO SOMEWHERE IN THE CENTRAL TIME ZONE MS RICHARDS CALLED DON HUTSON THE COMPANY'S PRESIDENT SHE INVITED MR HUTSON TO LUNCH AT THE GOVERNOR'S MANSION SHE THEN CHECKED IN PERIODICALLY TO SEE IF ANYTHING MORE WAS NEEDED IN ONE INSTANCE WAIVING OUTOFSTATE TUITION FOR THE CHILDREN OF TRANSFERRED EMPLOYEES WHO DECIDE TO ATTEND A STATE UNIVERSITY THE DALLAS AREA EVENTUALLY WON THE MULTISTATE COMPETITION GOV RICHARDS'S LOBBYING WASN'T THE DECIDING FACTOR MR HUTSON SAYS BUT HE ADDS IF WE HAD TWO STATES EQUAL THE EFFORT SHE PUT IN AND THE RELATIONSHIP WE DEVELOPED WOULD HAVE BEEN ENOUGH TO TILT THE BALANCE IN FAVOR OF TEXAS I THINK SHE'S ONE OF THE FEW GOVERNORS WHO UNDERSTANDS THAT A GOVERNOR'S ROLE IS TO CREATE JOBS AND SHE HAS BEEN VERY GOOD AT IT GOV RICHARDS ALSO GETS ECONOMICDEVELOPMENT POINTS FOR IMPROVING THE OPERATIONS OF THE TEXAS DEPARTMENT OF COMMERCE WHICH PREVIOUSLY HAD A REPUTATION FOR LAX MANAGEMENT LAVISH SPENDING AND A LACK OF FOCUS AND SHE HAS SPENT SO MUCH TIME LOBBYING ON BEHALF OF TEXAS PROJECTS IN WASHINGTON THAT SHE HAS BEEN DESCRIBED AS THE STATE'S THIRD SENATOR ALTHOUGH SHE FAILED TO SAVE THE SUPERCOLLIDER HER SUCCESSES INCLUDE NAFTA AND CONTINUED FEDERAL FUNDING FOR THE V22 OSPREY BUILT BY FORT WORTH'S BELL HELICOPTER TEXTRON I WAS NOT AN EARLY SUPPORTER BUT NOW I'M AN AVID SUPPORTER SAYS ROGER WILLIAMS DIRECTOR OF EMPLOYEE RELATIONS AT BELL WE THINK SHE'S BEEN GOOD FOR THE STATE AND GOOD FOR BUSINESS IN THE STATE MS RICHARDS HAS MADE ABOUT 3000 APPOINTMENTS TO VARIOUS BOARDS COMMISSIONS AND REGULATORY AGENCIES SHE GETS A MIXED REPORT CARD ON APPOINTMENTS SAYS ALLAN SHIVERS JR CHAIRMAN OF THE TEXAS CHAMBER OF COMMERCE SOME HAVE BEEN GREAT SOME NOT SO GREAT IN MR SHIVERS'S PLUS COLUMN JOHN HALL CHAIRMAN OF THE NEW TEXAS NATURAL RESOURCE CONSERVATION COMMISSION MR HALL AND OTHER APPOINTEES TO THE COMMISSION HAVE TAKEN A FAIRLY BALANCED REASONABLE APPROACH MR SHIVERS SAYS SOME OTHER APPOINTEES HOWEVER HAVE BEEN LESS EMBRACED BY BUSINESS DANE HARRIS PRESIDENT OF THE TEXAS ASSOCIATION OF BUSINESS COMPLAINS OF THE TENDENCY OF THE GOVERNOR TO APPOINT TRIAL LAWYERS LABORUNION PEOPLE PEOPLE OUTSIDE OF THE MAINSTREAM OF EMPLOYER VIEWS MR HARRIS IS ESPECIALLY CRITICAL OF TWO APPOINTMENTS RICHARD PERKINS A MIDLEVEL EXECUTIVE AT DALLAS AREA RAPID TRANSIT TO A SEAT RESERVED FOR EMPLOYERS ON THE TEXAS WORKERS COMPENSATION COMMISSION BOARD AND FORMER STATE REP EDDIE CAVAZOS TO THE EMPLOYER'S POSITION ON THE TEXAS EMPLOYMENT COMMISSION MR HARRIS ACCUSES THE GOVERNOR OF TRYING TO STACK THE COMMISSIONS IN FAVOR OF WORKERS TO THE DETRIMENT OF EMPLOYERS IN ONE INSTANCE MR PERKINS SIDED WITH THE EMPLOYEE REPRESENTATIVES ON A 42 VOTE WRITING RULES FOR A CONTROVERSIAL PROGRAM FOR BUSINESSES WHERE SERIOUS ONTHEJOB INJURIES HAVE OCCURRED MR PERKINS WHO SERVED FOR MORE THAN A YEAR ON THE COMMISSION RESIGNED BEFORE FACING A FIGHT OVER HIS CONFIRMATION MR CAVAZOS WAS REAPPOINTED AS REPRESENTATIVE OF THE GENERAL PUBLIC ON THE TEXAS EMPLOYMENT COMMISSION BOARD AVOIDING A BATTLE OVER HIS NOMINATION THE INSURANCE INDUSTRY IS PROBABLY THE LOUDEST IN COMPLAINING ABOUT MS RICHARDS SHE'S BEEN AFTER OUR BUSINESS FROM THE WORD GO' SAYS BOB BLEVINS EXECUTIVE DIRECTOR OF THE TEXAS LIFE INSURANCE ASSOCIATION THE STATE BOARD OF INSURANCE WHICH WAS RECENTLY REPLACED BY A SINGLE STATE COMMISSIONER IS THE SUBJECT OF MUCH OF THE WRATH THE BOARD ADOPTED A CONSUMERS' BILL OF RIGHTS WHICH WAS DRAFTED BY STATE PUBLIC INSURANCE COUNSEL AMY JOHNSON WHOSE APPOINTMENT INSURANCE LOBBYISTS TRIED TO BLOCK THE BOARD ALSO APPROVED STRICT RULES AGAINST INSURANCE REDLINING THAT WERE OVERTURNED IN COURT INDUSTRY LEADERS ARE WITHHOLDING JUDGMENT OF J ROBERT HUNTER THE NEW STATE INSURANCE COMMISSIONER SORT OF THEY NOTE THAT MR HUNTER MOST RECENTLY WAS A NATIONAL CONSUMER ADVOCATE ON INSURANCE ISSUES WE DO NOT SEE ANY REMARKABLE IMPROVEMENT IN THE GOVERNOR'S WILLINGNESS TO APPRECIATE THE PROBLEMS OF INSURERS AND POLICYHOLDERS IN THE STATE OF TEXAS SAYS JERRY JOHNS DIRECTOR OF THE SOUTHWESTERN INSURANCE INFORMATION SERVICE STILL MANY BUSINESSES ESPECIALLY SMALLER ONES CHEER MS RICHARDS'S EFFORTS JANICE RAY PRESIDENT OF THE MANPOWER PERSONNEL SERVICES FRANCHISE IN BRYAN BLAMES INSURANCE COMPANIES FOR HIGH WORKERS' COMP RATES AND FOR THE DIFFICULTY THAT SMALL BUSINESSES HAVE IN OBTAINING HEALTH INSURANCE FOR THEIR EMPLOYEES IF THE GOVERNOR CAN DO ANYTHING TO BRING THE INSURANCE INDUSTRY UNDER CONTROL MS RAY SAYS SHE WOULD HAVE A SPECIAL PLACE IN HEAVEN WHEN ASKED ABOUT MS RICHARDS' TRACK RECORD ON TAXES BILL ALLAWAY EXECUTIVE VICE PRESIDENT OF THE TEXAS ASSOCIATION OF TAXPAYERS ASKS WHAT RECORD THERE REALLY HAVEN'T BEEN ANY TAX DEVELOPMENTS SINCE SHE TOOK OFFICE THE JURY HE SAYS IS STILL OUT BUT IT MAY NOT BE FOR LONG STATE OFFICIALS STILL NEED TO FIND A WAY TO ADEQUATELY FINANCE PUBLIC EDUCATION AND TO RESTRUCTURE A TAX SYSTEM THAT MOST BUSINESS LEADERS FAULT FOR PLACING TOO GREAT A BURDEN ON MANUFACTURING ENERGY AND PETROCHEMICAL COMPANIES FUNDING FOR EDUCATION IS ESPECIALLY IMPORTANT BECAUSE IT RELIES SO HEAVILY ON LOCAL PROPERTY TAXES WHICH HIT BUSINESS PARTICULARLY HARD IN FACT SAYS MR SHIVERS GOV RICHARDS'S BIG NEGATIVE MIGHT BE THE PERCEIVED LACK OF LEADERSHIP IN THE PUBLICEDUCATION DEBATE SHE HAS NOT FORMULATED A POLICY FOR ADDRESSING THE PUBLICEDUCATIONFINANCE ISSUE WHILE THE GOVERNOR HAS NO LEGISLATIVE POWER MR SHIVERS SAYS THAT'S NO EXCUSE A GOVERNOR WITH AS MUCH PERSONAL POPULARITY AS GOV RICHARDS ENJOYS CAN SELL ANYTHING SHE SETS HER MIND TO SAYS MR SHIVERS WHO IS SUPPORTING GEORGE W BUSH TO BE THE NEXT GOVERNOR OF TEXAS MANY SMALL COMPANIES WERE ALARMED EARLY IN GOV RICHARDS'S TERM WHEN THE COMMERCE DEPARTMENT ELIMINATED ITS SEPARATE SMALLBUSINESS DIVISION MORE RECENTLY THOUGH MANY ENTREPRENEURS HAVE COME AROUND DURING THE PAST LEGISLATIVE SESSION HER OFFICE DRAFTED AND PROMOTED A PROGRAM CREATING HEALTHINSURANCE PURCHASING COOPERATIVES THE TOP LEGISLATIVE PRIORITY FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHEN IT COMES TO SMALL BUSINESS MANY OWNERS HAVE BEEN SURPRISED AT WHAT SHE HAS DONE SAYS ROBERT HOWDEN THE FEDERATION'S TEXAS DIRECTOR SMALL BUSINESS ALSO WAS HEARTENED THAT THE GOVERNOR SIGNED LAWS RESTRICTING PRODUCTLIABILITY SUITS SHE WAS UNDER A LOT OF PRESSURE FROM CONSUMER GROUPS NOT TO SIGN IT MR HOWDEN SAYS BUT SHE DID 9312150009 931215 VALUEADDED COMMUNICATIONS DALLAS VALUEADDED COMMUNICATIONS INC SAID IT SIGNED AGREEMENTS TO INSTALL AUTOMATED TELLER MACHINES IN MORE THAN 300 HOTELS IN THE US TERMS WEREN'T DISCLOSED VALUEADDED IS A TRANSACTION PROCESSING COMPANY SPECIALIZING IN LONGDISTANCE CALLS FINANCIAL TRANSACTIONS AND HOTEL RESERVATIONS 9312150008 931215 ENTERPRISE ROBERT STILLMAN IS SAID TO BE CHOICE TO HEAD SBA ARM WASHINGTON THE SMALL BUSINESS ADMINISTRATION IS EXPECTED TO NAME A RETIRED NEW YORK VENTURE CAPITALIST TO HEAD ITS INVESTMENT COMPANY PROGRAM PEOPLE CLOSE TO THE AGENCY SAID ROBERT STILLMAN WHO WAS AN OFFICER AND DIRECTOR OF AEA INVESTORS INC A NEW YORK CORPORATE BUYOUT FIRM UNTIL HIS RETIREMENT LAST YEAR IS SAID TO BE THE AGENCY'S CHOICE FOR THE POST BUT AN SBA OFFICIAL SAID THE AGENCY IS STILL IN THE FINAL STAGES OF NEGOTIATIONS WITH SEVERAL CANDIDATES AND WOULDN'T CONFIRM MR STILLMAN'S SELECTION LIKE SBA ADMINISTRATOR ERSKINE BOWLES A FORMER NORTH CAROLINA INVESTMENT BANKER MR STILLMAN SPECIALIZED IN WORKING WITH MANY SMALL AND MIDSIZE COMPANIES DURING A 35YEAR CAREER IN THE VENTURECAPITAL INDUSTRY THE TWO MEN ARE LONGTIME PROFESSIONAL ASSOCIATES BEFORE JOINING AEA MR STILLMAN WAS A PARTNER WITH PAYSON & TRACK NEW YORK ONE OF THE FIRST ORGANIZED VENTURECAPITAL COMPANIES IN THE US MR STILLMAN 64 YEARS OLD A RESIDENT OF GREENWICH CONN COULDN'T BE REACHED TO COMMENT THE CHANGE IN LEADERSHIP COMES AT A CRUCIAL TIME FOR THE AGENCY'S SMALL BUSINESS INVESTMENT COMPANY PROGRAM SEVERAL SBICS FOLDED OR WERE LIQUIDATED BY SBA OVER THE PAST FEW YEARS AS A RESULT OF POOR MANAGEMENT AND INADEQUATE GOVERNMENT OVERSIGHT IN ADDITION MANY SMALL COMPANIES ESPECIALLY THOSE INVOLVED IN RISKY TECHNICAL INDUSTRIES SAY THEY ARE IN DESPERATE NEED OF MORE LONGTERM INVESTMENT CAPITAL CONGRESS HAS APPROVED LEGISLATION TO REVAMP THE PROGRAM AND RULES GOVERNING THE NEW LAW SHOULD TAKE EFFECT NEXT YEAR THE SBIC PROGRAM HAS BEEN UNDER THE DIRECTION OF SBA'S TOP INVESTMENT DIVISION CHIEF IN RECENT WEEKS AFTER ITS FORMER DIRECTOR WAS TRANSFERRED TO ANOTHER POST WITHIN THE AGENCY 9312150006 931215 AEA INVESTORS TO ACQUIRE TWO LINES FROM KLOSTER CRUISE FOR 565 MILLION BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL CORAL GABLES FLA PRIVATE INVESTMENT GROUP AEA INVESTORS INC SAID IT AGREED TO ACQUIRE TWO CRUISE LINES FROM KLOSTER CRUISE LTD FOR 565 MILLION KLOSTER A UNIT OF THE OSLO NORWAY CRUISE AND FERRY CONCERN VARD AS SAID THAT IT SIGNED A PRELIMINARY AGREEMENT WITH AEA FOR THE SALE OF ITS ROYAL VIKING LINE AND ROYAL CRUISE LINE THE PURCHASE INCLUDES ABOUT 60 MILLION IN ADVANCED TICKET SALES BOOKED ON THE TWO LINES AEA A LARGE INVESTING GROUP OF MORE THAN 60 CURRENT AND FORMER CHIEF EXECUTIVES OF MAJOR US COMPANIES AS WELL AS UNIVERSITY ENDOWMENT FUNDS TYPICALLY ACQUIRES MIDSIZE COMPANIES WITH A POTENTIAL FOR GROWTH RUNS THEM FOR A FEW YEARS BY PROVIDING STAFF AND INVESTORS ON THE BOARD THEN SELLS THEM FOR A HEFTY RETURN AN AEA SPOKESMAN SAID THE INVESTORS ARE HAPPY WITH THE CRUISE LINES' EXISTING MANAGEMENT AND SEES GROWTH POTENTIAL BECAUSE THE CRUISE LINES ENJOY A 70TO80 REPEAT BUSINESS ROYAL CRUISE LINE BASED IN SAN FRANCISCO OPERATES THREE SHIPS WHILE ROYAL VIKING BASED IN CORAL GABLES FLA HAS TWO SHIPS OPERATING WORLDWIDE AND OFFERING A MORE UPSCALE OR LUXURY CRUISE BOTH ARE EXPECTED TO BE PROFITABLE IN 1994 KLOSTER BASED IN CORAL GABLES SAID IT INTENDS TO USE PROCEEDS OF THE SALE TO SHORE UP ITS NORWEGIAN CRUISE LINE ONCE THE INDUSTRY FLAGSHIP WHICH LATELY HAS STRUGGLED WITH HEFTY DEBT AND MANAGEMENT INSTABILITY PRESIDENT AND CHIEF EXECUTIVE ADAM M ARON SAID THE CASH INFUSION WOULD ENABLE KLOSTER TO REDUCE DEBT AND STRENGTHEN ITS BALANCE SHEET WHILE IMPROVING AND EXPANDING NORWEGIAN CRUISE LINE'S SEVENSHIP FLEET KLOSTER PLANS TO RETIRE OLDER SHIPS AND INTRODUCE NEW STATEOFTHEART VESSELS EMBARKING ON AN AGGRESSIVE ADVERTISING CAMPAIGN BEGINNING IN TWO WEEKS KLOSTER'S MOVE WILL STRENGTHEN THE NORWEGIAN CRUISE OPERATION SAID JAY J LEWIS PRESIDENT OF MARKETSCOPE INC A CRUISE CONSULTING FIRM IN MIAMI HE SAID KLOSTER LOST ITS COMPETITIVE EDGE WHEN OTHER CRUISE COMPANIES BROUGHT NEWER AND LARGER VESSELS INTO THE CARIBBEAN ABOUT 10 YEARS AGO BUT HE ADDED THAT THE INVESTMENTS IN THE ROYAL VIKING AND ROYAL CRUISE LINES HAD MADE THEM MORE ATTRACTIVE AND SUCCESSFUL KLOSTER RANKS AMONG THE TOP FIVE CRUISE LINES IN 1992 IT HAD 12 SHIPS AND 11147 BERTHS WHILE INDUSTRY LEADER CARNIVAL CRUISE LINES HAD 18 SHIPS WITH 18397 BERTHS ROYAL CRUISE LINE CARRIED 70000 PASSENGERS IN 1992 AND ROYAL VIKING CARRIED 17000 NORWEGIAN CRUISE LINE SAILS MAINLY IN THE CARIBBEAN AND TO BERMUDA AND IN THE PACIFIC SOON IT WILL OFFER CRUISES TO ALASKA PRIVATELYHELD KLOSTER REPORTED A 47 INCREASE IN OPERATING PROFIT FOR THE THIRD QUARTER TO 338 MILLION FROM 231 MILLION A YEAR AGO REVENUE ROSE 24 TO 2515 MILLION FROM 2024 MILLION KLOSTER HAD ABOUT 465000 PASSENGERS IN 1992 AEA'S SPOKESMAN SAID THE PURCHASE OF THE TWO LINES REPRESENTS THE GROUP'S FIRST INVESTMENTS IN THE CRUISE BUSINESS AEA MOST RECENTLY ACQUIRED THE SOLA EYEGLASS LENS BUSINESS FROM BRITISH PILKINGTON PLC FOR ABOUT 315 MILLION ALTHOUGH EXTREMELY RETICENT ABOUT DISCUSSING ITS MEMBERSHIP AEA'S MEMBERS HAVE INCLUDED HENRY KISSINGER FORMER GENERAL MOTORS CORP CHAIRMAN ROGER SMITH AND FORMER EXXON CORP CHAIRMAN CLIFTON GARVIN MR ARON SAID THE COMPANY LET IT BE KNOWN IN OCTOBER THAT IT PLANNED TO SELL THE TWO CRUISE LINES AND SIFTED THROUGH MANY OFFERS BEFORE SETTLING ON AEA'S VERY GENEROUS BID 9312150005 931215 INTERNATIONAL RUSSIA'S REFORMERS CAN'T AGREE ON COURSE AFTER ELECTION DEFEAT INSTEAD OF JOINING FORCES AGAINST RIGHTIST VICTORS PARTIES BICKER MANEUVER BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW WHILE EXTREME NATIONALIST AND COMMUNIST FORCES CELEBRATE THEIR NEW MANDATES IN RUSSIA'S PARLIAMENTARY ELECTION AND PLAN AHEAD REFORM PARTIES ARE STILL DEVOTING MOST OF THEIR ENERGIES TO MOURNING OVER THEIR MISTAKES THAT'S A DANGEROUS MIX WITH VOTE COUNTS STILL FILTERING IN FROM SUNDAY'S ELECTIONS AND THE NEW PARLIAMENT SCHEDULED TO CONVENE IN LESS THAN FOUR WEEKS THE BIG QUESTION IS WHETHER RUSSIA'S FRACTIOUS REFORMERS CAN COBBLE TOGETHER A WORKING COALITION THEY WILL NEED IT TO FACE DOWN THE RELATIVELY LARGE NUMBER OF BETTERORGANIZED NEW LAWMAKERS WHO WOULD LIKE TO TAKE RUSSIA BACK TO A BELLICOSE RACIST ERA A REFORMIST COALITION IN THE PARLIAMENT HERE IS WHAT RUSSIA'S DEMOCRATIC CHEERLEADERS ABROAD ARE NOW HOPING FOR BUT YESTERDAY THE LEADER OF THE SECONDLARGEST REFORM PARTY GRIGORY YAVLINSKY WARNED THAT YOU CANNOT ESTABLISH A COALITION JUST BECAUSE YOU NEED IT FINAL ELECTION RESULTS ARE STILL HARD TO PREDICT PRECISELY WITH BALLOT COUNTS STILL UNDER WAY FOR THREE DIFFERENT TYPES OF SEATS IN TWO CHAMBERS OF THE NEW PARLIAMENT THE MOST DIFFICULT TO ESTIMATE ARE THE RESULTS FOR THE NEW LEGISLATURE'S UPPER HOUSE CALLED THE FEDERATION COUNCIL WHICH ALLOTS TWO SEATS TO EACH OF RUSSIA'S 89 REGIONS AND REPUBLICS THERE IS ALSO NO CLEAR PICTURE YET OF THE HALF OF THE LOWER HOUSE OR STATE DUMA THAT WILL CONSIST OF 225 DIRECTLY ELECTED SEATS IT'S LIKELY THAT THESE DIRECTLY ELECTED LAWMAKERS WILL BE A HIGHLY DIVERSE BUNCH INCLUDING INDEPENDENT CANDIDATES AND ENTRENCHED REGIONAL LEADERS THE POSSIBLE ALLIANCES INVOLVE A DAZZLING SET OF PERMUTATIONS THAT OBSERVERS IN MOSCOW EXPECT TO BE VERY FLUID FOR SOME TIME EASIER TO GRASP ARE THE REMAINING 225 SEATS IN THE LOWER HOUSE WHICH ARE FILLED ACCORDING TO PROPORTIONAL REPRESENTATION OF PARTIES THAT WIN MORE THAN 5 OF THE VOTE THESE RESULTS HAVE BEEN THE CHIEF BASIS FOR CONCLUSIONS THAT THE EXTREME NATIONALISTS AND COMMUNISTS HAVE DONE VERY WELL AMONG THESE PROPORTIONALREPRESENTATION SEATS WITH 77 OF RUSSIA'S 89 REGIONS AND REPUBLICS REPORTING SO FAR MR YAVLINSKY'S REFORM PARTY HAS WON ABOUT 8 PUT TOGETHER WITH THE 15 WON BY THE LEADING REFORM PARTY RUSSIA'S CHOICE MR YAVLINKSY'S PARTY COULD HELP CONCOCT A REFORM BLOCK OF SOME 23 OF THE PROPORTIONAL SEATS THAT COULD HELP SOMEWHAT TO BALANCE THE ESTIMATED 24 WON BY MR ZHIRINOVSKY'S EXTREME NATIONALIST PARTY AND THE 13 WON BY THE COMMUNIST PARTY BUT MR YAVLINSKY HAS YET TO ABANDON HIS ATTACKS ON RUSSIA'S CHOICE WHICH HAPPENS TO BE LED BY MEMBERS OF BORIS YELTSIN'S GOVERNMENT THOUGH MR YELTSIN HAS SO FAR STAYED CLEAR OF ENDORSING ANY PARTY YESTERDAY FOR EXAMPLE MR YAVLINSKY BLAMED THE YELTSIN ADMINISTRATION AND BY EXTENSION RUSSIA'S CHOICE LEADERS SUCH AS FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR FOR THE EXTREMIST SWING NOTING THAT RUSSIA TODAY IS A DISGRUNTLED AND DISILLUSIONED SOCIETY MR YAVLINSKY SAID THAT LOTS OF PROMISES WERE MADE BY OUR AUTHORITIES BUT NO PROMISES WERE KEPT ON A MORE TRACTABLE NOTE THE EXECUTIVE COMMITTEE OF RUSSIA'S CHOICE ANNOUNCED THAT TO COMBAT MR ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY RUSSIA'S CHOICE WAS WILLING TO COOPERATE WITH ANYONE ELSE INCLUDING THE COMMUNISTS BUT SO FAR NO EXPLICIT PLAN FOR COOPERATION HAS BEEN FLOATED NOR HAS ANY SPECIFIC PLAN COME YET FROM THE NO 3 REFORM PARTY VICE PREMIER SERGEI SHAKHRAI'S PARTY OF RUSSIAN UNITY AND ACCORD WITH 6 OF THE EARLY RETURNS MR SHAKHRAI SAID THAT NO SINGLE BLOCK OR PARTY WILL HAVE A MAJORITY IN THE LOWER HOUSE OF THE NEW LEGISLATURE THEREFORE SAID MR SHAKHRAI HE WOULD URGE THE NEW GOVERNMENT TO RELY MORE HEAVILY ON THE UPPER HOUSE OF THE LEGISLATURE THE FEDERATION COUNCIL THAT COULD BE DIFFICULT HOWEVER NOT ONLY IS THE FEDERATION COUNCIL LESS POWERFUL UNDER RUSSIA'S CONSTITUTION THAN THE LOWER HOUSE BUT IT ALSO STRONGLY REPRESENTS REGIONAL INTERESTS THESE INTERESTS ARE LESS CLEARLY ALIGNED IDEOLOGICALLY THAN THE LIBERAL DEMOCRATS OR THE COMMUNISTS BUT DO TEND TO HAVE THEIR OWN QUARRELS WITH THE CENTRAL GOVERNMENT FOR EXAMPLE AMONG THE EARLY WINNERS OF A FEDERATION COUNCIL SEAT IS EDUARD ROSSEL FROM MR YELTSIN'S NATIVE EKATERINBURG IN THE URAL MOUNTAIN REGION MR ROSSEL WAS PREVIOUSLY APPOINTED BY MR YELTSIN AS EKATERINBURG HEAD OF ADMINISTRATION THEN SACKED BY MR YELTSIN THIS FALL FOR EXCEEDING HIS DUTIES BY DECLARING THE URALS A SEPARATE REPUBLIC SOME OBSERVERS HERE SAY THAT CONTINUED BICKERING AMONG REFORMERS MAY BE THE PUBLIC FACE OF BACKROOM DEALCUTTING THERE ARE QUESTIONS LIKE WHO GETS WHAT PIECE OF THE GOVERNMENT PORTFOLIO SAYS ONE WESTERN DIPLOMAT BASED HERE THE PROBLEM IS THAT WHILE THE PROREFORM FORCES SPEND TIME DIVIDING THE SPOILS THEY ARE PRESIDING OVER A SHRINKING SHARE OF POLITICAL POWER MR ZHIRINOVSKY ON THE OTHER HAND TURNED UP YESTERDAY AT A NEWS CONFERENCE FLANKED BY WHAT HE DESCRIBED AS MINISTERS OF HIS PARTY'S SHADOW GOVERNMENT SAYING WHAT THE RUSSIAN VOTER NEEDS IS A BETTER STANDARD OF LIVING HE WENT ON TO SAY WE ARE A COMPROMISE PARTY WE ARE READY TO JOIN ANY BLOCK OR COALITION IN WASHINGTON PRESIDENT CLINTON SENT A PERSONAL MESSAGE OF SUPPORT TO MR YELTSIN WHILE OTHER TOP US OFFICIALS CRITICIZED THE EXTREME POSITIONS HELD BY MR ZHIRINOVSKY IN A LETTER TO MR YELTSIN MR CLINTON PROMISED CONTINUED AMERICAN SUPPORT FOR THE ECONOMIC AND DEMOCRATIC REFORM PROCESS IN RUSSIA SPEAKING WITH REPORTERS LATER IN THE DAY MR CLINTON SUGGESTED THE US MIGHT NOW BE MORE LENIENT IN ITS DEMANDS FOR ECONOMIC REFORM IN RUSSIA WHILE THE WEST MAY FIND IT EASY TO PRESCRIBE ECONOMIC REFORM AND MARKET ECONOMICS THE ELECTION RESULTS SHOWED WE ALSO NEED TO BE SENSITIVE TO DOMESTIC POLITICS AND THE REAL PROBLEMS OF REAL PEOPLE HE SAID THE POWERFUL ROLE OF THE PRESIDENT UNDER RUSSIA'S NEW CONSTITUTION MEANS THAT MR YELTSIN HAS SOME MEANS TO COUNTER THE HOSTILE FORCES ABOUT TO TAKE THEIR SEATS IN PARLIAMENT BUT WITH THAT COMES THE DANGER THAT MR ZHIRINOVSKY SHOULD HE SUCCEED IN HIS PLANS TO EVENTUALLY BECOME PRESIDENT WOULD INHERIT THOSE POWERS IN THE SHORT RUN WARNS HARVARD RUSSIAN HISTORY PROF RICHARD PIPES THE BLOCK OF NATIONALISTS AND COMMUNISTS IS GOING TO BE NOT STRONG ENOUGH TO OVERRULE THE PRESIDENT BUT STRONG ENOUGH TO SABOTAGE HIS ADMINISTRATION 9312150004 931215 WHO'S NEWS FLAGSTAR COS FLAGSTAR COS SPARTANBURG SC VERA KING FARRIS WAS ELECTED A DIRECTOR OF THIS FOODSERVICE COMPANY DR FARRIS 53 YEARS OLD IS PRESIDENT OF RICHARD STOCKTON COLLEGE IN POMONA NJ HER ELECTION INCREASES THE BOARD TO 11 MEMBERS 9312150003 931215 SMALL STOCK FOCUS DECLINES IN BONDS CONCERN OVER VOTE IN RUSSIAN ELECTIONS HELP BATTER STOCKS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SHARP DECLINES IN BOND PRICES CONCERN OVER RUSSIAN ELECTION RESULTS AND A RETREAT BY THE DOW JONES INDUSTRIAL AVERAGE FROM ITS RECORD HIGH COMBINED TO BEAT UP SMALLCOMPANY STOCKS TRADERS ALSO SAID THE CONTINUED CORRECTION AMONG SMALLER ISSUES IS A RESPONSE TO THE GAINS LOGGED THROUGH LAST MONTH THE BOND MARKET'S DOWN AND WE'RE SEEING SOME PROFITTAKING SAID WILLIAM SULYA HEAD OF OVERTHECOUNTER TRADING AT AG EDWARDS & SONS INC THE RUSSELL 2000 INDEX WHICH CHARTS THE PERFORMANCE OF SMALLCOMPANY STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES TUMBLED 234 POINTS OR 093 TO END AT 24989 ITS FOURTH CONSECUTIVE LOWER CLOSE BROADBASED SELLING ON NASDAQ TOOK ITS COMPOSITE INDEX DOWN 825 POINTS OR 109 TO 75146 ITS SEVENTH STRAIGHT DECLINE DECLINING NASDAQ ISSUES OUTSTRIPPED GAINERS 1934 TO 1112 ON NASDAQ NATIONAL MARKET VOLUME OF 253447800 SHARES UP FROM 215425000 SHARES THE PREVIOUS DAY TOTAL VOLUME CLIMBED TO 304879000 SHARES FROM 270006300 SHARES WHILE BONDS SLIPPED AMID PRESSURE ON SEVERAL FRONTS ADDITIONAL NEWS ON POLITICAL TURMOIL IN RUSSIA AFFECTED STOCKS ANOTHER NEGATIVE FOR SMALLER STOCKS WAS THE DOW INDUSTRIALS' INABILITY TO REACH A THIRD CONSECUTIVE HIGH THE INDEX FELL 2180 OR 058 TO END AT 374263 MARKET WATCHERS SAID YEAREND SELLING ALSO IS A FACTOR SOME TECHNOLOGY STOCKS WERE ESPECIALLY WEAK TECNOMATIX TECHNOLOGIES AN ISRAELI SOFTWARE FIRM FELL 1 1/2 TO 8 MRS TECHNOLOGY OF CHELMSFORD MASS WAS OFF 1 3/4 AT 12 1/2 AND SUPERTEX A SUNNYVALE CALIF SEMICONDUCTOR CONCERN GAVE UP 1/8 TO FINISH AT 3 LEADING THE NASDAQ MOSTACTIVE LIST WAS SOFTWARE TOOLWORKS OF NOVATO CALIF WITH 59 MILLION SHARES COMPARED WITH AVERAGE DAILY VOLUME OF ABOUT 601000 THE COMPANY WHICH DECLINED 1 1/4 TO 8 1/2 LOST GROUND AFTER A PRESENTATION MONDAY AT A MONTGOMERY SECURITIES CONFERENCE TRADERS SAID SOFTWARE TOOLWORKS REPORTEDLY REPEATED EXPECTATIONS THAT FISCAL THIRDQUARTER SALES IN EUROPE WOULD SLUMP FROM A YEAR AGO ON MONDAY THE COMPANY'S SHARES FELL 1 3/8 ANOTHER BIG DECLINER WAS IRG TECHNOLOGIES A RICHARDSON TEXAS MICROCOMPUTER PRODUCTS COMPANY WHICH FELL 3/4 TO 1 1/4 RAYMOND JAMES LOWERED ITS INVESTMENT RATING ON THE COMPANY'S SHARES TO SELL FROM HOLD IN THE NEWISSUE MARKET MACROMEDIA CLOSED AT 15 1/8 ABOVE ITS OFFERING PRICE OF 12 A SHARE THE INTERACTIVE MULTIMEDIA SOFTWARE COMPANY PLANS TO USE PROCEEDS TO REPAY ITS CREDIT LINE AS WELL AS FOR GENERAL CORPORATE PURPOSES INCLUDING WORKING CAPITAL AND CAPITAL EXPENDITURES ACTIVE VOICE ENDED THE SESSION AT 18 1/4 UP 3 1/4 FROM ITS DEBUT PRICE OF 15 A SHARE TUESDAY MORNING THE MAKER OF PCBASED CALLPROCESSING SYSTEMS WILL USE NET PROCEEDS FOR GENERAL CORPORATE PURPOSES POTENTIAL ACQUISITION OF COMPLEMENTARY TECHNOLOGIES AND WORKING CAPITAL AS WELL AS FOR PRODUCT AND MARKET DEVELOPMENT EXPENDITURES EDUSOFT OF ISRAEL ROSE 3/4 TO 13 THE COMPANY SAID IT GOT A PURCHASE ORDER VALUED AT ABOUT 33 MILLION FOR ITS EDUCATIONAL SOFTWARE FROM THE EDUCATION MINISTRY OF AN UNIDENTIFIED LATIN AMERICAN COUNTRY VICAL OF SAN DIEGO JUMPED 1 7/8 TO 12 7/8 THE COMPANY AND BIG BOARDLISTED BAXTER HEALTHCARE HAVE ENTERED INTO AN AGREEMENT TO JOINTLY EVALUATE AND DEVELOP THE USE OF VICAL'S PROPRIETARY GENEBASED PHARMACEUTICAL TECHNOLOGY TO TREAT HEMOPHILIA GOOD GUYS A BRISBANE CALIF CONSUMER ELECTRONICS PRODUCTS RETAILER FELL 2 TO 11 3/4 GOLDMAN SACHS LOWERED ITS RATING ON THE COMPANY'S STOCK TO MODERATE OUTPERFORMER FROM TRADING BUY SPS TECHNOLOGIES RETREATED 1 3/4 TO 20 ON THE NEW YORK STOCK EXCHANGE THE NEWTOWN PA DESIGNER OF MECHANICAL FASTENERS SAID IT EXPECTS TO RECORD SUBSTANTIAL RESTRUCTURING CHARGES IN THE FOURTH QUARTER THE COMPANY POSTED A LOSS OF 185 A SHARE IN ADDITION SPS SAID ITS BOARD HAS ELECTED TO SUSPEND PAYMENT OF ITS QUARTERLY DIVIDEND OF 32 CENTS A SHARE NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 47 WHILE 76 ISSUES HIT NEW LOWS 9312150002 931215 WHO'S NEWS LITTON INDUSTRIES INC LITTON INDUSTRIES INC BEVERLY HILLS CALIF CAROL B HALLETT AND ROBERT H LENTZ WERE ELECTED DIRECTORS OF THIS PROVIDER OF RESOURCEEXPLORATION SERVICES INDUSTRIALAUTOMATION SYSTEMS AND ELECTRONIC AND DEFENSE SYSTEMS MRS HALLETT 56 YEARS OLD HAS BEEN AN ADVISORY DIRECTOR OF LITTON SINCE SEPTEMBER AND IS A SENIOR GOVERNMENT RELATIONS ADVISER WITH THE LAW IRM COLLIER SHANNON RILL & SCOTT MR LENTZ 69 HAS BEEN AN ADVISORY DIRECTOR SINCE 1990 WHEN HE RETIRED FROM LITTON AS A SENIOR VICE PRESIDENT AND GENERAL COUNSEL THEY SUCCEED JAYNE B SPAIN AND FRED W O'GREEN BOTH 72 WHO RETIRED 9312150001 931215 WHO'S NEWS BRUNSWICK CORP BRUNSWICK CORP LAKE FOREST ILL BETTYE MARTINMUSHAM 60 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MAKER OF RECREATIONAL EQUIPMENT INCREASING THE NUMBER OF DIRECTORS TO 12 SHE IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GEAR HOLDINGS INC 9312140154 931203 REVIEW & OUTLOOK EDITORIAL SURVIVING AMERICAN LOGIC WE'D BE CURIOUS TO KNOW HOW THE FOLLOWING NEWS STORY YESTERDAY WAS INTERPRETED AROUND THE MIDDLE EAST BY SADDAM HUSSEIN HAFEZ ASSAD YASSER ARAFAT AND YITZHAK RABIN TO NAME ONLY A FEW AS REPORTED BY THE ASSOCIATED PRESS SOMALI STRONGMAN LEAVES ON US ARMY PLANE MOGADISHU SOMALIA AP SOMALI STRONGMAN MOHAMED FARRAH AIDID LEFT TODAY ON A US ARMY PLANE TO THE ETHIOPIAN CAPITAL FOR TALKS WITH HIS RIVALS AVOIDING UNITED NATIONS FACILITIES AND PROTECTED BY AMERICAN SECURITY FORCES WE GUESS ONE THING THESE MEN WOULD CONCLUDE IS THAT US GOVERNMENT OFFICIALS BELIEVE THAT IF THEY CAN'T WIN ON THE BATTLEFIELD THEY CAN ALWAYS TALK THEIR WAY TO VICTORY WE NOTE THIS BIZARRE AND UNSEEMLY TURN IN THE AIDID STORY BECAUSE SECRETARY OF STATE WARREN CHRISTOPER ARRIVES IN THE MIDDLE EAST TODAY TO WORK THE DETAILS OF THE PEACE AGREEMENT BETWEEN ISRAEL AND THE PLO THE ISRAELI PEOPLE MAY REASONABLY HOPE THAT THE RESULT OF THESE AMERICAN EFFORTS TURN OUT BETTER FOR THEM THAN THEY HAVE FOR MOGADISHU FOLLOWERS OF THE DAILY NEWS WILL NOTE THAT THE MIDEAST PEACE ACCORD HAS BEEN CHARACTERIZED BY RIOTS AND MURDER IN GAZA AND ON THE WEST BANK HAMAS CURRENTLY THE MOST MURDEROUS PALESTINIAN FACTION HAS PUT ITS FOLKS ON ORDER TO KILL ISRAELI SOLDIERS AND SETTLERS AT LEAST 13 ISRAELIS HAVE DIED SINCE THE AGREEMENT'S ROSE GARDEN SIGNING IN SEPTEMBER HAMAS'S COURAGEOUS DRIVEBY SHOOTERS GUNNED DOWN A KINDERGARTEN TEACHER WEDNESDAY PALESTINIANS HAVE ALSO DIED IN FIGHTING RELATEDLY AN ASPECT OF THE PEACE AGREEMENT THAT DISTURBS MANY ISRAELIS HAS TO DO WITH THE CREATION OF A 15000PERSON PALESTINIAN POLICE FORCE FOR THE GAZA STRIP AND PART OF THE WEST BANK IT DEVELOPS THAT MR ARAFAT HAS BEEN STAFFING UP THIS FORCE QUITE OPENLY WITH MEMBERS OF THE PALESTINIAN LIBERATION ARMY THEY'LL HAVE AUTOMATIC WEAPONS AND ARMORED VEHICLES THIS STRIKES US AS A LITTLE STRANGE BUT AGAIN WE LIVE IN AN AGE OF AIDID LOGIC IN FACT THERE ISN'T TOO MUCH REALITY THAT HAS EVER GOTTEN IN THE WAY OF AN AMERICAN DIPLOMAT IN PURSUIT OF A PEACE DOCUMENT FOR EXAMPLE ONE OF THE VENUES IN WHICH MR CHRISTOPHER WILL PURSUE PEACE IS DAMASCUS SYRIA WHICH IS RUN BY AN ALAWITE DICTATORSHIP UNDER THE DIRECTION OF HAFEZ ASSAD HAVING ACHIEVED PEACE WITH THE PLO THE CURRENT AMERICAN LOGIC IS THAT IT'S NOW TIME TO BRING MR ASSAD ONBOARD MR ASSAD WILL LIVE ON IN OUR HISTORICAL MEMORY AS THE MAN WHO IN 1982 SUPPRESSED AN UPRISING IN THE CITY OF HAMA BY SENDING IN THE SYRIAN ARMY WHICH EXECUTED AT LEAST 20000 PEOPLE MR ASSAD'S PRICE FOR PEACE IS ISRAELI EVACUATION OF THE GOLAN HEIGHTS WHICH THEY GOT IN THE 1967 WAR ISRAELIS HAVE ALWAYS FELT THE GOLAN HEIGHTS WERE IMPORTANT AS AN EARLYWARNING POST FOR THE APPROXIMATELY EIGHT HOURS THEY'D HAVE TO RESPOND TO FORWARD MOVEMENT BY MR ASSAD'S HUGE TANK ARMY MR CHRISTOPER WILL WORK THIS ISSUE FOR ASSAD AND IT CERTAINLY WOULDN'T SURPRISE US IF IT WAS SUGGESTED THAT FOR SOME INTERIM PERIOD AMERICAN PEACEKEEPERS WOULD PATROL THE GOLAN HEIGHTS REMEMBER ANYTHING'S POSSIBLE IN A WORLD IN WHICH AMERICAN SOLDIERS SERVE AS BODYGUARDS FOR GEN AIDID AIDID LOGIC MAY BE LAUGHABLE BUT IT KEEPS GETTING PEOPLE KILLED BUT WE ASSUME SOMEONE IN ISRAEL KNOWS THAT SEE RELATED LETTER LETTERS TO THE EDITOR THE US AND GEN AIDID MEANING IN THE MADNESS WSJ DEC 14 1993 9312030078 YY93 MM12 9312140153 931214 LAB NOTES BY MICHAEL WALDHOLZ ARTHRITIS SUFFERERS MAY BENEFIT FROM GENE THERAPY EFFORTS TO TREAT ILLNESS BY IMPLANTING GENES INTO HUMAN CELLS ARE AMONG THE MOST PROVOCATIVE ENDEAVORS IN SCIENCE TODAY DOCTORS ARE TESTING VARIOUS GENEDELIVERY TECHNIQUES AGAINST SEVERAL INHERITED DISORDERS CERTAIN CANCERS AND AIDS DESPITE LOGISTICAL HURDLES AND ETHICAL CONCERNS THERE ARE 68 HUMAN GENETHERAPY TRIALS APPROVED OR UNDER WAY UP FROM 26 LAST YEAR GENETHERAPY RESEARCH PROGRAMS ARE POPPING UP AT MEDICAL CENTERS AROUND THE COUNTRY RESEARCHERS AT THE UNIVERSITY OF PITTSBURGH ARE TRYING GENE THERAPY TO BLOCK SYMPTOMS OF ARTHRITIS SUCH AS JOINT SWELLING AND CARTILAGE DAMAGE FOR WHICH THERE'S CURRENTLY LITTLE EFFECTIVE TREATMENT IN EXPERIMENTS LED BY CHRISTOPHER EVANS AND PAUL ROBBINS RESEARCHERS INSERTED AN ARTHRITISBLOCKING GENE INTO WHITE BLOOD CELLS REMOVED FROM FLUID SURROUNDING THE KNEES OF LABORATORY RABBITS THAT SUFFER AN ARTHRITISLIKE DISORDER IN ARTHRITIS THESE BLOOD CELLS ATTACK JOINT TISSUE BY RELEASING A SUBSTANCE CALLED INTERLEUKIN1 OR IL1 SEVERAL YEARS AGO SCIENTISTS FOUND THAT ANOTHER NATURAL SUBSTANCE CAN INACTIVATE IL1 RECENTLY SCIENTISTS ISOLATED THE GENE THAT GETS CELLS TO PRODUCE THIS IL1 BLOCKER IT'S THIS GENE THAT THE PITTSBURGH GROUP INSERTED INTO RABBIT CELLS IN A NEW REPORT THE RESEARCHERS SAY THESE TRANSFORMED CELLS AFTER BEING INJECTED BACK INTO RABBIT KNEES SAFELY PRODUCED LARGE AMOUNTS OF THE IL1 BLOCKER SWELLING AND TISSUE DAMAGE WERE SHARPLY REDUCED PLANS FOR HUMAN TESTS ARE SEVERAL YEARS OFF HOSPITALETHICS CONSULTANTS WIDELY DISAGREE ABOUT WHEN TO END TREATMENT OF UNCONSCIOUS PATIENTS WHO ARE UNLIKELY TO RECOVER THE DISAGREEMENTS COME AT A TIME WHEN MORE AND MORE PATIENTS ARE BEING KEPT ALIVE IN A PERSISTENT VEGETATIVE STATE THROUGH NEW MEDICAL TECHNOLOGIES AND HOSPITALS ARE INCREASINGLY TURNING TO ETHICS CONSULTANTS TO HELP DOCTORS AND FAMILIES DECIDE WHEN AND WHETHER LIFESUPPORT TREATMENT SHOULD BE ENDED ELLEN FOX WHO TEACHES MEDICAL ETHICS AT UNIVERSITY OF CHICAGO HOSPITALS SAYS THAT DESPITE THIS GROWING TREND TOWARD ETHICS CONSULTATIONS THERE'S LITTLE EVIDENCE THAT THEY PROVIDE ACCEPTABLE OUTCOMES DR FOX AND A COLLEAGUE CAROL STOCKING THEREFORE DECIDED TO TEST THE ADVICE OF 118 ETHICISTS ATTENDING A PROFESSIONAL MEETING IN 1991 THE TWO RESEARCHERS PRESENTED THE ETHICISTS WITH THE CASE OF A COMATOSE PATIENT WITH LITTLE CHANCE OF RECOVERY ALONG WITH EIGHT DIFFERENT VIGNETTES DETAILING SUCH THINGS AS WHETHER THE PATIENT OR FAMILY HAD INDICATED A PREFERENCE FOR KEEPING THE PATIENT ALIVE THE RESEARCHERS GAVE THE ETHICISTS ONLY FIVE POSSIBLE RESPONSES TO EACH VIGNETTE BUT THE RESPONDENTS DISAGREED WIDELY ON ALL THE SUGGESTED OUTCOMES EXCEPT IN ONE STRAIGHTFORWARD VIGNETTE IN WHICH BOTH THE FAMILY AND PATIENT HAD AT SOME TIME STRONGLY INDICATED THAT TREATMENT SHOULDN'T BE PROLONGED DR FOX SAYS THE STUDY SUGGESTS THAT NO RIGHT ADVICE EXISTS SHE SAYS THAT INSTEAD OF IMPOSING PERSONAL VIEWS ETHICISTS SHOULD DELICATELY ORCHESTRATE AN ETHICAL CONSENSUS AMONG PARTICIPANTS AND HELP RECONCILE DIFFERENCES NEW INTERFERON RESEARCH HOLDS HOPE FOR TREATING AIDS LIKE IL1 INTERFERON IS ONE OF MANY SUBSTANCES PRODUCED BY WHITE BLOOD CELLS AS PART OF THE BODY'S NATURAL IMMUNE SYSTEM FOR FIGHTING DISEASE INTERFERON WAS THE FIRST SUCH SUBSTANCE REPRODUCED OUTSIDE THE BODY IN LARGE VOLUME THROUGH RECOMBINANT DNA TECHNIQUES EARLY ON SCIENTISTS HOPED THAT INTERFERON WOULD BECOME AN ALLPURPOSE ANTIVIRAL DRUG BUT THOSE HOPES DIMMED STILL COMMERCIAL FORMS OF ALPHA INTERFERON SOLD BY SCHERINGPLOUGH AND ROCHE HOLDING HAVE PROVEN USEFUL AGAINST CERTAIN CANCERS IN SOME LABORATORY AND HUMAN STUDIES SCIENTISTS HAVE FOUND THAT ALPHA INTERFERON CAN BLOCK REPLICATION OF HIV THE VIRUS THAT CAUSES AIDS BUT FURTHER INVESTIGATION WAS LIMITED BY TWO PROBLEMS INTERFERON MUST BE INJECTED AN OBSTACLE TO DAILY USE FOR MANY PATIENTS AND HIGH DOSES CAUSE DEBILITATING FLULIKE SIDE EFFECTS FOR YEARS LITTLE INTERFERON SCIENCES NEW BRUNSWICK NJ HAS ARGUED WITHOUT SUCCESS THAT ITS NATURAL INTERFERON HARVESTED FROM DONATED HUMAN BLOOD IS LESS TOXIC AND MORE POTENT THAN THE DRUG COMPANIES' PRODUCTS THE COMPANY SAYS ITS ALFERON IS A COCKTAIL OF 14 SUBTYPES OF ALPHA INTERFERON WHILE THE OTHER PRODUCTS ARE RECOMBINANT VERSIONS OF JUST TWO OF THESE SUBTYPES IN A NEW REPORT DOCTORS AT THE WALTER REED ARMY INSTITUTE OF RESEARCH IN WASHINGTON SAY THE ALFERON COCKTAIL WAS 100 TO 1000 TIMES MORE POTENT THAN THE DRUG COMPANIES' VERSIONS THE COMPANY SAYS ONE OF THE SUBTYPES OF ALPHA INTERFERON IN ALFERON BUT NOT PRESENT IN THE DRUG FIRMS' PRODUCTS IS ESPECIALLY ACTIVE AGAINST HIV A TEST IN PATIENTS HAS FOUND THAT ALFERON CAUSED FEWERTHANEXPECTED SIDE EFFECTS LARGER STUDIES IN HUMANS ARE PLANNED SCIENTISTS AT SCHERINGPLOUGH AND ROCHE SAY THE NEW RESEARCH IS INTRIGUING BUT THAT THEY DON'T BELIEVE THE STUDIES PROVE ALFERON IS BETTER THAN THEIR PRODUCTS RESEARCHERS AT THE UNIVERSITY OF NORTH CAROLINA REPORT A POSSIBLE BREAKTHROUGH FOR PEOPLE WHOSE NORMAL HAIR TURNS COURSE AND KINKY AFTER HAIRDRYER USE THE RESEARCHERS SAY MATTED HAIR CLOGGING THE HAIRDRYER'S HEAT COILS MAKES THE DEVICES OVERHEAT CAUSING TINY GASFILLED BUBBLES TO FORM IN HAIR STRANDS THE RESEARCHERS ADVISE REGULAR CLEANING OF THE COILS SCIENTISTS AT TWO BIOTECHNOLOGY COMPANIES SEQUANA THERAPEUTICS LA JOLLA CALIF AND ALOPEX PHARMACEUTICALS RIDGEWOOD NJ ARE HUNTING FOR GENES THAT CAUSE BALDNESS HOPING THEY WILL LEAD TO NEW HAIRGROWTH DRUGS 9312140152 931214 CORPORATE PENSIONS FACE PROXY RULES BY KEVIN G SALWEN AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS DRAFTING A PLAN THAT WOULD PROD CORPORATE PENSION FUNDS TO SET UP PROCEDURES TO GOVERN HOW THEIR HOLDINGS ARE TO BE VOTED THE MOVE COULD GREATLY BOOST SHAREHOLDER ACTIVISM FOR MONTHS SHAREHOLDER ACTIVISTS HAVE BEEN URGING THE LABOR DEPARTMENT'S PENSION AND WELFARE BENEFITS ADMINISTRATION TO FORCE COMPANIES' PENSION TRUSTEES TO TAKE HARDER STANDS AGAINST MANAGEMENT IN DISPUTES OVER SUCH ISSUES AS THE INDEPENDENCE OF CORPORATE BOARDS THAT MESSAGE NOW APPEARS TO BE FINDING A SYMPATHETIC AUDIENCE AT THE AGENCY WHICH IS PUTTING TOGETHER A PLAN THAT WOULD PUSH CORPORATE PENSIONS TO CREATE GUIDELINES FOR HOW TO VOTE PROXIES ANY SUCH GUIDELINES COULD MAKE IT MORE DIFFICULT FOR PENSIONFUND MANAGERS TO BE STRONGARMED INTO VOTING IN FAVOR OF CORPORATE MANAGEMENT SHAREHOLDER ACTIVISTS SAY A CRONYISM OF THIS KIND PERVADES THE CORPORATE PENSION FUND COMMUNITY CORPORATE PENSION FUNDS HOLD MORE THAN 243 TRILLION IN RETIREMENT MONEY BUT THEY HAVE BEEN A VIRTUAL NONENTITY IN THE INCREASING SHAREHOLDER ACTIVISM OF THE PAST SEVERAL YEARS INSTEAD THE CORPORATE FUNDS GENERALLY HAVE BACKED MANAGEMENT WHILE THE PUBLIC FUNDS SUCH AS PUBLICEMPLOYEE RETIREMENT FUNDS AND LABOR UNIONS HAVE STEPPED UP CAMPAIGNS AGAINST WHAT THEY CONSIDER EXCESSIVE COMPENSATION COZY RELATIONSHIPS BETWEEN BOARDS AND CHIEF EXECUTIVE OFFICERS AND OTHER CORPORATE POLICIES THE LABOR DEPARTMENT HAS SAID FOR SOME TIME THAT IT'S IMPORTANT TO REALIZE YOUR PROXY IS AN ASSET OF YOUR PENSION PLAN SAID OLENA BERG ASSISTANT SECRETARY IN CHARGE OF PENSIONS YOU HAVE TO HAVE PROXY VOTING GUIDELINES CURRENTLY MANY PLANS LEAVE THE VOTING TO THEIR MONEY MANAGERS BUT THOSE MANAGERS OFTEN ARE SEEKING ADDITIONAL BUSINESS FROM CORPORATE CLIENTS AND DON'T WANT TO ANGER THE CORPORATE COMMUNITY WITH VOTES AGAINST MANAGEMENT EVEN A SMALL CHANGE IN ACTIVITY BY THE CORPORATE FUNDS COULD INCREASE GENERAL SHAREHOLDER PRESSURE ON CORPORATE EXECUTIVES IF THE LABOR DEPARTMENT TURNS UP THE HEAT EVEN A SMALL AMOUNT THE RESULT COULD BE SIGNIFICANT SAID SARAH TESLIK HEAD OF THE WASHINGTONBASED COUNCIL OF INSTITUTIONAL INVESTORS IT ALL DEPENDS ON HOW SPECIFIC THEY ARE A LABOR DEPARTMENT DECISION IS PROBABLY SEVERAL MONTHS AWAY OFFICIALS ARE HUDDLING TO DETERMINE WHAT THE BEST COURSE OF ACTION IS AND HOW TO AVOID LEGAL PROBLEMS WITH CORPORATE AMERICA WHICH IS LIKELY TO FIGHT EVEN MINOR CHANGES THE AGENCY IS RESPONSIBLE FOR GOVERNING THE ACTIONS OF PENSION FUNDS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OR ERISA PROXYVOTING GUIDELINES ALREADY ARE IN PLACE AT SOME CORPORATE PENSION PLANS SAID JAMES KAITZ VICE PRESIDENT OF THE FINANCIAL EXECUTIVES INSTITUTE WHICH REPRESENTS CORPORATE FINANCIAL OFFICERS MR KAITZ THINKS THE ADMINISTRATION'S PROPOSAL WON'T GO VERY FAR MY GUESS IS THAT MS BERG WILL ISSUE BROAD RULES A LIST OF ITEMS YOU SHOULD CONSIDER HE SAID I DON'T THINK THIS WILL SEND SHOCK WAVES THROUGH THE LARGER CORPORATE PLANS BUT SOME LONGTIME SHAREHOLDER ACTIVISTS ARE URGING THE DEPARTMENT TO GO BEYOND THE PROXY GUIDELINES AMONG THEM ARE PRINCIPALS AT LENS INC A FUND THAT INVESTS IN UNDERPERFORMING COMPANIES AND TRIES TO FORCE THEM TO CHANGE THEIR CORPORATE PRACTICES NELL MINOW A LENS PRINCIPAL SAID SHE IS PRODDING THE AGENCY TO FORCE CORPORATE PENSION PLANS TO TAKE STRONG STEPS LIKE FILING SHAREHOLDER PROPOSALS RELATED TO GOVERNANCE PRACTICES AND EVEN MEETING WITH MANAGEMENT IN EXTREME CASES TO EXPRESS CONCERNS ABOUT POOR PERFORMANCE MS MINOW ANTICIPATES THAT AT THE LEAST THE LABOR DEPARTMENT WILL TRY TO BRING THE REST OF THE ERISA COMMUNITY AT LEAST UP TO THE LEVEL OF THE GIANT TEACHERS INSURANCE AND ANNUITY ASSOCIATIONCOLLEGE RETIREMENT EQUITIES FUND IN OCTOBER THE FUND ANNOUNCED A CORPORATE GOVERNANCE POLICY IN WHICH AS A LAST RESORT THE FUND WILL VOTE AGAINST DIRECTORS WHERE COMPANIES DON'T PRACTICE WHAT IT CONSIDERS GOOD CORPORATE GOVERNANCE 9312140151 931214 WHO'S NEWS MARVEL ENTERTAINMENT GROUP INC MARVEL ENTERTAINMENT GROUP INC NEW YORK MUSIC AND TELEVISION EXECUTIVE QUINCY JONES 60 YEARS OLD WAS NAMED A DIRECTOR OF THIS COMICBOOK SPORTS AND ENTERTAINMENTCARD AND LICENSING COMPANY INCREASING THE BOARD TO 12 9312140150 931214 INTERNATIONAL FISONS PLC OUSTS TWO OFFICERS SETS BIG RESTRUCTURING BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL LONDON TROUBLED BRITISH DRUG MAKER FISONS PLC ABRUPTLY OUSTED CEDRIC SCROGGS ITS CHIEF EXECUTIVE AND ROY THOMAS FINANCE DIRECTOR AND UNVEILED RESTRUCTURING CHARGES THAT WILL WIPE OUT THE COMPANY'S ENTIRE FULLYEAR PRETAX PROFIT PROJECTED AT 100 MILLION 149 MILLION THE MOVES SENT FISONS STOCK SKIDDING 18 TO CLOSE AT 113 PENCE 168 ON THE LONDON STOCK EXCHANGE CITING DIRECTORS' INTENTION TO SLASH FISONS' 1993 DIVIDEND TO 43 PENCE A SHARE FROM 87 PENCE IN 1992 MARKET ANALYSTS SAID THE STOCK'S FREE FALL COULD CONTINUE TO AS LOW AS 80 PENCE A SHARE BEFORE STABILIZING AT A TURBULENT MEETING WITH LONDON ANALYSTS ON MONDAY PATRICK EGAN FISONS' CHAIRMAN ACKNOWLEDGED THE COMPANY NOW EXPECTS TO BREAK EVEN AT BEST THIS YEAR BUT HE HELD OUT PROSPECTS THAT THE RESTRUCTURING PLAN COULD RESTORE PROFIT AS EARLY AS NEXT YEAR THE LATEST MOVES AT THE BELEAGUERED CONCERN COULD FINALLY PLACE IT ON A RECOVERY PATH ANALYSTS SAID BUT SKEPTICS ABOUND FISONS HAS NOW OVERHAULED TOP MANAGEMENT TWICE IN 24 MONTHS AND YESTERDAY'S ADJUSTMENT OF ITS PROFIT FORECAST WAS THE THIRD HUMILIATING DOWNWARD REVISION DURING THE SAME PERIOD AMONG THE CHANGES FISONS IMMEDIATELY WILL STOP OFFERING YEAREND DRUG DISCOUNTS A PRACTICE THAT SKEWED ITS ANNUAL SALES PATTERN THE COMPANY ALSO TOLD ANALYSTS THAT DESPITE INTENSE MARKET SPECULATION THAT IT WAS AN EASY TAKEOVER TARGET THERE HADN'T BEEN ANY APPROACHES TO DATE FISONS HAS BEEN HURT IN RECENT YEARS BY A SERIES OF MISHAPS SINCE EARNINGS PEAKED IN 1990 THE COMPANY HAS BEEN FORCED TO WITHDRAW TWO KEY PHARMACEUTICAL PRODUCTS AND HAS EXPERIENCED MANUFACTURING PRODUCTION PROBLEMS AND SHARPLY DETERIORATING MARKET CONDITIONS IN ITS SCIENTIFIC EQUIPMENT BUSINESS MORE RECENTLY IT HAS FACED A BRIBERY SCANDAL IN THE UK 9312140149 931214 WHO'S NEWS BRANDON SYSTEMS CORP BRANDON SYSTEMS CORP SECAUCUS NJ THIS COMPUTER AND TELECOMMUNICATIONS SERVICES COMPANY PROMOTED SEVERAL REGIONAL MANAGERS TO THE POSITION OF VICE PRESIDENT JENNY BRIMHALL 47 YEARS OLD SOUTHWEST REGION LINDA CALLARI 34 NORTHEAST REGION STACIE HALLER 38 SOUTHEAST REGION NANCY SPERANZA 43 CENTRAL EAST REGION AND DEBORAH WINTERS 42 FORMERLY BRANCH MANAGER FOR THE COMPANY'S LOS ANGELES OFFICE PACIFIC REGION 9312140148 931214 WHO'S NEWS HANSON PLC HANSON PLC LONDON HANSON INDUSTRIES THE US UNIT OF THIS BRITISHAMERICAN INDUSTRIAL MANAGEMENT CORPORATION NAMED FORMER VICE PRESIDENT AND GENERAL COUNSEL GEORGE H HEMPSTEAD III 50 YEARS OLD TO THE POSITION OF SENIOR VICE PRESIDENT AND GENERAL COUNSEL ROBERT M BRIER 34 TREASURER WAS NAMED TO THE ADDITIONAL POSITION OF VICE PRESIDENT AND FRANCIS V LLOYD 54 FORMERLY SENIOR DIRECTOR OF TAXES WAS NAMED VICE PRESIDENT TAX 9312140147 931214 WHO'S NEWS STANDARD MANAGEMENT CORP STANDARD MANAGEMENT CORP INDIANAPOLIS RAYMOND J OHLSON 43 YEARS OLD WAS ELECTED TO THE BOARD OF THIS INSURANCE HOLDING COMPANY THE ELECTION OF MR OHLSON PRESIDENT OF STANDARD MANAGEMENT'S STANDARD LIFE INSURANCE CO OF INDIANA UNIT AND ALSO PRESIDENT AND DIRECTOR OF THE PARENT'S STANDARD MARKETING CORP UNIT INCREASES THE STANDARD MANAGEMENT BOARD TO EIGHT MEMBERS 9312140146 931214 CREDIT MARKETS OHIO SUIT THREATENS TAX ADVANTAGES OF BUYING SINGLESTATE MUNI FUNDS AND INSTATE BONDS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS SCRAMBLING TO BUY MUNICIPAL BONDS OR TO INVEST IN MUNICIPALBOND FUNDS AHEAD OF NEXT YEAR'S BIG TAX INCREASE SHOULD TAKE NOTICE OF A CLASSACTION LAWSUIT FILED BY A BONDHOLDER AGAINST THE STATE OF OHIO WITH THE BENCHMARK 30YEAR TREASURY BOND YIELDING 623 YESTERDAY UP FROM 620 ON FRIDAY MANY INVESTORS ARE LOOKING TO MUNI BONDS FOR A BOOST THAT'S BECAUSE THEY EXPECT MUNIBOND YIELDS RELATIVE TO TREASURYS TO DROP EVEN FURTHER AS THE TAX INCREASE AND A WAVE OF BOND CALLS IN JANUARY SPUR DEMAND BUT FOR INVESTORS IN CERTAIN TYPES OF BONDS AND BOND FUNDS THE OHIO LAWSUIT MAY BECOME A BITTER PILL THE SUIT FILED BY SERENE G SHAPER OF UNIVERSITY HEIGHTS CHARGES THAT THE STATE IS VIOLATING THE US CONSTITUTION BY IMPOSING ITS INCOME TAX ON INCOME FROM OUTOFSTATE MUNICIPAL BONDS MOST STATES TAX THE INCOME OF THE TAXEXEMPT BONDS OF OTHER STATES MUNICIPALBOND MARKET EXPERTS ARE WORRIED ABOUT THE CASE EVEN THOUGH A JUDGE IN THE FRANKLIN COUNTY COURT OF COMMON PLEAS HAS ALREADY RULED AGAINST MS SHAPER HER ATTORNEY CLINT KRISLOV SAYS HE PLANS TO APPEAL THE CASE AND TRY TO TAKE IT TO THE US SUPREME COURT IF HE'S SUCCESSFUL IT WOULD BE BAD NEWS FOR THE THRIVING 132 BILLION MARKET FOR SINGLESTATE MUNICIPALBOND FUNDS THESE FUNDS WHICH SPECIALIZE IN BUYING THE BONDS OF A SINGLE STATE ARE DESIGNED TO TAKE ADVANTAGE OF THE EXTRA TAX ADVANTAGES FOR RESIDENTS OF THOSE STATES IF THEY BUY INSTATE BONDS ACCORDING TO LIPPER ANALYTICAL SERVICES THERE ARE 778 OF THESE FUNDS NATIONWIDE OFTENTIMES A BOND FROM YOUR OWN STATE WILL BE EXEMPT FROM FEDERAL STATE AND LOCAL TAXES BUT IF MS SHAPER PREVAILS IN HER LAWSUIT IN HIGHER COURTS SUCH BOND FUNDS COULD LOSE THIS ADVANTAGE THAT'S BECAUSE A PRECEDENT WOULD BE SET THAT COULD POSSIBLY FORCE OTHER STATES TO LIFT TAXES ON OUTOFSTATE MUNICIPAL BONDS THIS IS SOMETHING THAT WILL NEVER BE FAVORABLY RULED ON AT THE STATE LEVEL SAID RICHARD LEHMANN PRESIDENT OF THE BOND INVESTORS ASSOCATION IT DOES HAVE TO GO TO THE SUPREME COURT AND THERE ARE MANY REASONS TO THINK THAT THE SUPREME COURT LOOKS UNFAVORABLY ON THESE SITUATIONS IF THE LAWSUIT WERE FINALLY SUCCESSFUL SAID MR LEHMANN THERE WOULD BE NO POINT TO SINGLESTATE BOND FUNDS A RULING IN FAVOR OF THE SUIT COULD HAVE A DEVASTATING EFFECT ON THE VALUE OF SINGLESTATE BOND FUNDS SAID MR LEHMANN BUT APPEALING THE RULING IN FRANKLIN COUNTY AND TAKING THE CASE TO THE US SUPREME COURT COULD TAKE A WHILE MR KRISLOV SAID SUCH TAXING PRACTICES ARGUED MR LEHMANN GIVE SOME STATES A CERTAIN ADVANTAGE IN THE MUNICIPALBOND MARKET AT THE EXPENSE OF OTHER STATES STATES WITH LOW TAXES AND A SMALL POPULATION FOR EXAMPLE SEE THE DEMAND FOR THEIR BONDS WEAKENED WHEN LARGER STATES WITH HIGHER TAXES LEVY TAXES ON THE INCOME FROM THE SMALLER STATES' BOND ISSUES A LEGAL PRECEDENT THAT PREVENTED STATES FROM TAXING THE INCOME FROM MUNICIPAL BONDS OF OTHER STATES COULD HELP BOOST DEMAND FOR SUCH LOW TAX STATES SAID MR LEHMANN IT MAY BE GOOD FOR THE MUNICIPAL MARKET HE ADDED BECAUSE IT COULD IMPROVE THE MARKET'S LIQUIDITY THE SUIT WHICH WAS FILED LAST YEAR IN THE CUYAHOGA COUNTY COURT OF COMMON PLEAS ARGUES THAT OHIO'S PRACTICE OF TAXING OUTOFSTATE MUNICIPAL BONDS IS AN UNAMBIGUOUS DISCRIMINATION AGAINST INTERSTATE COMMERCE SOLELY A PROTECTIONIST MEASURE THAT CANNOT WITHSTAND SCRUTINY UNDER THE COMMERCE CLAUSE OF THE US CONSTITUTION THE SUIT NAMES ROGER W TRACY DIRECTOR OF THE OHIO DEPARTMENT OF REVENUE AS THE DEFENDANT IN HER DECISION LAST MONTH JUDGE EVELYN J STRATTON OF THE COURT OF COMMON PLEAS IN FRANKLIN COUNTY RULED THAT THE COMMERCE CLAUSE DOES NOT APPLY TO THIS PARTICULAR CASE HER DECISION SAID THAT NEITHER THE SUPREME COURT NOR ANY CASE LAW EXAMINED HAS APPLIED THE COMMERCE CLAUSE TO ACTIONS BETWEEN GOVERNMENT ENTITIES MR KRISLOV SAID HE EXPECTED SUCH A DECISION WE ALWAYS KNEW FROM THE BEGINNING THAT THIS CASE WOULD HAVE TO GET TO THE SUPREME COURT HE SAID BECAUSE NO STATE IS GOING TO VOLUNTARILY SURRENDER ITS ABILITY TO TAX OUTOFSTATE BONDS MEANWHILE YESTERDAY TREASURY SECURITIES POSTED MODERATE LOSSES DURING LIGHT TRADING IN RESPONSE TO A JUMP IN PRECIOUSMETALS PRICES FOR MUCH OF THE SESSION THE FEBRUARY GOLD FUTURES CONTRACT WAS UP MORE THAN 4 AN OUNCE FLIRTING WITH 390 A RISE IN GOLD PRICES IS OFTEN TAKEN AS A SIGN OF GROWING INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BUT A DROP IN THE PRICES OF OTHER COMMODITIES SUCH AS OIL HELPED EASE INFLATION CONCERNS MEANWHILE YESTERDAY THE US TREASURY ALSO SOLD 2615 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 306 FOR A COUPONEQUIVALENT YIELD OF 312 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 326 FOR A COUPONEQUIVALENT YIELD OF 336 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED DEC 16 THE 13WEEK BILLS MATURE MARCH 17 1994 AND THE 26WEEK BILLS MATURE JUNE 16 1994 PRICES OF LORAL CORP'S BONDS DROPPED SHARPLY YESTERDAY IN REACTION TO ITS TENTATIVE AGREEMENT TO BUY INTERNATIONAL BUSINESS MACHINES CORP'S FEDERAL SYSTEMS CO UNIT LORAL WILL ACQUIRE FEDERAL SYSTEMS WHICH IS VALUED AT NEARLY 157 BILLION WITH CASH AS A RESULT THE MARKET IS LEFT WONDERING HOW MUCH DEBT WILL BE NEEDED TO FUND THE TRANSACTION MOODY'S INVESTORS SERVICE AND STANDARD & POOR'S BOTH PLACED THE COMPANY'S BONDS ON THEIR LISTS FOR POSSIBLE DOWNGRADE IN REACTION TO THE NEWS LORAL'S SENIOR DEBT IS PRESENTLY RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE COMPANY'S 7 COUPON DEBENTURES MATURING IN 2023 DROPPED 236 POINTS OR 2360 FOR A BOND WITH 1000 FACE VALUE TO 92727 THE YIELD ROSE TO 762 FROM 741 FRIDAY PRICES ON DEBT FROM KOREAN ENTITIES CONTINUED TO RISE FROM THEIR LOWS REACHED IN THE MIDDLE OF LAST WEEK FOR EXAMPLE KOREA ELECTRIC POWER CO'S 6375 COUPON BONDS DUE 2003 ROSE 069 POINT OR 690 FOR A BOND WITH A 1000 FACE VALUE TO 9667 THE YIELD DROPPED TO 684 FROM 694 THE MARKET REACTED NEGATIVELY TO THE LARGE SUPPLY OF DEBT ISSUED BY KOREAN ENTITIES AS WELL AS THE POLITICAL EVENTS SURROUNDING THE COUNTRY NORTH KOREA HAS BEEN CONSISTENTLY IN THE NEWS AS IT REFUSES TO ALLOW INSPECTION OF ITS NUCLEAR SITES HOWEVER THE IMPACT OF THE POLITICAL EVENTS WAS EXAGGERATED BY A FLOOD OF 175 BILLION OF NEW KOREAN BONDS IN THE PAST MONTH KOREA ELECTRIC SOLD 135 BILLION OF DEBT WHILE THE KOREA DEVELOPMENT BANK SOLD 400 MILLION OF PAPER HOWEVER THE KOREAN BONDS APPEARED TO HAVE REACHED THEIR LOWS LAST WEEK WHEN THE BONDS BEGAN TO LOOK ATTRACTIVE AGAIN SAID GEOFFREY KURINSKY SENIOR VICE PRESIDENT AT MASSACHUSETTS FINANCIAL SERVICES INC THE YIELD GAP OF KOREA ELECTRIC BONDS OVER COMPARABLE US TREASURYS COULD NARROW TO 10 PERCENTAGE POINT FROM 108 PERCENTAGE POINT IN COMING TRADING SESSIONS AS A RESULT OF RENEWED DEMAND PREDICTED MR KURINSKY THE LITTLE ACTION THAT TOOK PLACE YESTERDAY IN THE MUNICIPALBOND MARKET OCCURRED IN THE PRIMARY SECTOR THE SCANT TRANSACTIONS IN SECONDARY DEALINGS PRIMARILY INVOLVED LIGHT SELLING AT THE CLOSE DEKALB COUNTY GEORGIA'S 525 BONDS DUE 2023 WERE DOWN 1/4 POINT AT 97 5/8 YIELDING 539 THIS QUARTER HAS BEEN VOLATILE FOR THE MUNI MARKET THERE WAS AGGRESSIVE BUYING IN THE PAST TWO WEEKS AS MARKET PARTICIPANTS SNAPPED UP ISSUES IN ANTICIPATION OF A SUPPLY SHORTAGE IN JANUARY WHEN THERE WILL BE NUMEROUS BOND CALLS AND REDEMPTIONS IN THE PRIMARY MARKET ISSUES PRICED YESTERDAY INCLUDED MISSOURI'S 1188 MILLION SERIES A REFUNDING BONDS DUE 1993 FOR THE CONVENTION AND SPORTS FACILITY PROJECT A SMITH BARNEY SHEARSON GROUP BROUGHT THE OFFERING TO THE MARKET AT A REPRICING YIELDS FOR MOST BONDS WERE RAISED 50 BASIS POINTS TO ATTRACT BUYERS FOLLOWING THAT REPRICING YIELDS RANGE FROM 275 IN 1994 TO 565 IN 2021 THE INITIAL YIELD SCALE WAS 280 IN 1994 TO 560 IN 2021 IN OTHER PRICING ACTIVITY THE FLORIDA MUNICIPAL POWER AGENCY'S 2027 MILLION SERIES 1993 REVENUE BONDS WERE PRICED BY A ROBINSONHUMPHREY CO GROUP YIELDS RANGE FROM 250 IN 1994 TO 539 IN 2025 MORTGAGES ENDED LOWER WITH TREASURYS IN A QUIET SESSION MARKED BY LITTLE OTHER THAN SETTLEMENT OF SOME REAL ESTATE MORTGAGE INVESTMENT CONDUITS GINNIE MAE 65S FOR JANUARY DELIVERY WERE DOWN 8/32 AT 98 29/32 FREDDIE MAC GOLD 65S WERE DOWN 6/32 AT 99 1/32 AND FANNIE MAE 65S WERE DOWN 6/32 AT 98 28/32 THE ASSETBACKED SECTOR MEANWHILE IS SEEING THE LAST SPURT OF EXPECTED ACTIVITY BEFORE THE END OF THE YEAR THIS WEEK CITICORP'S CITIBANK NA IS BRINGING A 750 MILLION OFFERING OF FIXEDRATE FIVEYEAR CREDIT CARD SECURITIES AND GREEN TREE FINANCIAL CORP IS BRINGING A 725 MILLION OFFERING OF MANUFACTURING HOUSING CERTIFICATES BOTH OFFERINGS COULD BE PRICED AS EARLY AS TODAY THE CITIBANK OFFERING WOULD PROVIDE SOME WELCOME SUPPLY TO A ONCEPOPULAR SECTOR OF THE CREDITCARD MARKET ONLY HALF OF THE 18 BILLION IN NEW CREDITCARD OFFERINGS THIS YEAR HAVE BEEN ISSUED AS FLOATINGRATE SECURITIES AT THE SAME TIME ABOUT 12 BILLION IN FIXEDRATE CREDITCARD SECURITIES ARE MATURING SAYS DANIEL CASTRO RESEARCH ANALYST AT MERRILL LYNCH DEALERS LED BY CITICORP SECURITIES MARKETS INC ARE EXPECTING THE ISSUE TO YIELD 40 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE WHICH WAS ENDING YESTERDAY'S SESSION AT A YIELD OF 5164 JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9312140145 931214 WHO'S NEWS STANDARD BRANDS PAINT CO STANDARD BRANDS PAINT CO TORRANCE CALIF FIVE NEW DIRECTORS WERE ELECTED TO THE BOARD INCREASING TOTAL MEMBERSHIP TO EIGHT THE NEW DIRECTORS ARE RICHARD L BOJE FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF JOHN WANAMAKER ROBERT N DANGREMOND CHAIRMAN AND CHIEF EXECUTIVE OF AM INTERNATIONAL INC AND A PRINCIPAL WITH JAY ALIX & ASSOCIATES A FIRM SPECIALIZING IN RESTRUCTURINGS AND TURNAROUNDS DEBORAH HICKS MIDANEK COFOUNDER OF THE INVESTMENT ADVISORY FIRM SOLON ASSET MANAGEMENT CORP BLANDINA CARDENAS RAMIREZ PROFESSOR OF EDUCATION AT SOUTHWEST TEXAS STATE UNIVERSITY AND WILLIAM E YINGLING III RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF THRIFTY CORP THE BOARD ADDITIONS ARE PART OF STANDARD BRANDS' RESTRUCTURING PLAN THAT ALLOWED IT TO EMERGE FROM BANKRUPTCYLAW PROCEEDINGS IN JUNE STANDARD BRANDS IS A RETAILER OF PAINT AND HOME DECORATING PRODUCTS 9312140144 931214 WHO'S NEWS CIMCO INC CIMCO INC COSTA MESA CALIF CIMCO INC SAID THAT DAVID A FLECK 45 YEARS OLD ITS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED NO SUCCESSOR HAS BEEN NAMED YET CIMCO WHICH MAKES HIGHPERFORMANCE PLASTIC PARTS FOR INDUSTRIAL AND MEDICAL APPLICATIONS ALSO SAID THAT IT NAMED KENNETH HENDRICKSON 52 VICE PRESIDENT OF OPERATIONS AT SAN DIEGOBASED OVERLAND DATA INC AS A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN 9312140143 931214 WHO'S NEWS HUFFY CORP HUFFY CORP DAYTON OHIO JACK D MICHAELS 56 YEARS OLD WAS ELECTED TO THE BOARD OF THIS MAKER OF BICYCLES BASKETBALL BACKBOARDS AND LAWN AND GARDEN TOOLS HIS ELECTION EXPANDS THE BOARD TO 13 MEMBERS MR MICHAELS IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HON INDUSTRIES INC AN OFFICE FURNITURE MAKER IN MUSCATINE IOWA 9312140142 931214 WHO'S NEWS BECKMAN INSTRUMENTS INC BECKMAN INSTRUMENTS INC FULLERTON CALIF JAY STEFFENHAGEN 50 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT INVESTOR RELATIONS HE PREVIOUSLY WAS DIRECTOR CORPORATE STRATGIC PLANNING AND INVESTOR RELATIONS WITH THIS SUPPLIER OF PRODUCTS USED FOR BIOLOGICAL ANALYSIS IN LABORATORIES FOR DIAGNOSTICS RESEARCH AND QUALITY CONTROL 9312140141 931214 WHO'S NEWS QUADRAX CORP QUADRAX CORP PORTSMOUTH RI HARRY A SCHULT PRINCIPAL OF JP ASSOCIATES INC AN INVESTMENT BANKING FIRM IN PROVIDENCE RI WAS ELECTED A DIRECTOR OF THIS MAKER OF THERMOPLASTIC ADVANCED COMPOSITE MATERIALS EXPANDING THE BOARD TO FOUR MEMBERS 9312140140 931214 POLITICS & POLICY ELECTION COMMISSION DROPS SMALL CASES OF CAMPAIGN MISCONDUCT TO CUT BACKLOG BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL ELECTION COMMISSION IN AN EFFORT TO SPEED UP ITS INVESTIGATION OF ALLEGATIONS OF CAMPAIGN MISCONDUCT IS DROPPING 137 OF ITS MORE THAN 400 CASES THE CASES ARE BEING CLOSED BECAUSE THEY ARE RELATIVELY INSIGNIFICANT OR BECAUSE THEY DATE BACK TO BEFORE THE 1990 ELECTION CYCLE SAID FEC CHAIRMAN SCOTT THOMAS SHRINKING THE BACKLOG IS PART OF WHAT MR THOMAS TERMED A SWEEPING NEW APPROACH TO ENFORCING ELECTION LAW IN WHICH THE COMMISSION PLANS TO FOCUS MORE SELECTIVELY ON BIG CASES AND DISPOSE OF THEM MORE QUICKLY DESPITE ITS ASSERTION THAT MANY OF THE DISMISSED CASES AREN'T HIGHLY SIGNIFICANT THE FEC IS DROPPING A FEW HIGHPROFILE CASES THOSE INCLUDE INVESTIGATIONS OF FORMER SAVINGSANDLOAN EXECUTIVE CHARLES KEATING AND SEN DAVID DURENBERGER R MINN BUT THOSE CASES APPEAR TO HAVE BEEN OVERTAKEN BY EVENTS MR KEATING ALREADY HAS BEEN INVESTIGATED AND PROSECUTED IN FEDERAL COURTS FOR HIS FINANCIAL DEALINGS AND A FEDERAL INDICTMENT AGAINST THE RETIRING SEN DURENBERGER WAS DISMISSED THIS MONTH THE FEC AN INDEPENDENT REGULATORY AGENCY CHARGED WITH ENFORCING FEDERAL CAMPAIGNFINANCE LAWS INCLUDED THOSE INVESTIGATIONS IN ITS CATEGORY OF STALE CASES THE AGENCY WHICH HAS BEEN BURDENED BY AN INCREASINGLY HEAVY WORKLOAD HAS BEEN CRITICIZED FOR DELAYS THAT SOMETIMES STRETCH INTO YEARS IN RESOLVING COMPLAINTS OF ELECTIONLAW VIOLATIONS AS OF DEC 1 THE FEC SAID ITS DOCKET CONTAINED 446 CASES INVOLVING COMPLAINTS AGAINST SOME 2300 INDIVIDUALS TO HANDLE THAT WORK THE COMMISSION HAS A STAFF OF 276 PEOPLE FROM NOW ON MR THOMAS SAID THE AGENCY INTENDS TO OPERATE MORE EFFICIENTLY BY PURSUING THE MOST SIGNIFICANT CASES WE CANNOT AND SHOULD NOT ATTEMPT TO FULLY INVESTIGATE AND RESOLVE EACH AND EVERY ONE OF THE HUNDREDS OF CASES THAT COME BEFORE US BUT TO DETER WOULDBE ELECTIONLAW VIOLATORS THE FEC SAID IT IS BEGINNING TO IMPOSE STIFFER CIVIL PENALTIES IN THOSE CASES WHERE SERIOUS VIOLATIONS OCCUR FRED WERTHEIMER PRESIDENT OF COMMON CAUSE A PUBLICINTEREST GROUP TERMED THE CHANGES HELPFUL IT'S RIGHT FOR THEM TO SAY WE'VE GOT LIMITED RESOURCES AND WE HAVE TO USE THEM CAREFULLY 9312140139 931214 MA HANNA PURCHASES WARRANTS FROM FIRM FOR 275 MILLION CLEVELAND MA HANNA CORP SAID IT PURCHASED WARRANTS FOR 2750000 OF ITS COMMON SHARES HELD BY BRASCAN LTD TORONTO FOR 275 MILLION THE WARRANTS WERE ISSUED TO BRASCAN IN 1991 AS PART OF ITS 1982 PURCHASE OF 77 MILLION SHARES THE WARRANTS HAD A STRIKE PRICE OF 2612 AND WERE EXERCISABLE THROUGH AUGUST 1998 MA HANNA'S PURCHASE ELIMINATES THE UNCERTAINTY THAT BRASCAN MIGHT REDEEM ITS WARRANTS FORCING MA HANNA TO ISSUE MORE SHARES THAT WOULD DILUTE EARNINGS MA HANNA SAID IN 1993 THE WARRANTS DILUTED QUARTERLY PERSHARE EARNINGS ONE CENT BRASCAN HOLDS TWO SEATS ON MA HANNA'S 10MEMBER BOARD BRASCAN IS A PUBLICLY TRADED NATURALRESOURCES UTILITY AND FINANCIALSERVICES CONCERN MA HANNA IS A SPECIALTY CHEMICAL COMPANY 9312140138 931214 BUSINESS BRIEF VF CORP WILL BUY NUTMEG INDUSTRIES FOR 1750 A SHARE OR 325 MILLION WYOMISSING PA VF CORP SAID IT AGREED TO ACQUIRE SPORTS APPAREL MAKER NUTMEG INDUSTRIES INC FOR 1750 A SHARE OR ABOUT 325 MILLION NUTMEG WHICH HAD SALES OF ABOUT 185 MILLION FOR THE MOST RECENT 12MONTH PERIOD IS A LICENSEE FOR MAJOR LEAGUE SPORTS INCLUDING MAJOR LEAGUE BASEBALL THE NATIONAL FOOTBALL LEAGUE THE NATIONAL BASKETBALL ASSOCIATION AND THE NATIONAL HOCKEY LEAGUE NUTMEG SHARES CLOSED AT 1750 UP 250 OR 17 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE AGREEMENT CALLS FOR A VF UNIT TO MAKE A TENDER OFFER FOR ALL NUTMEG SHARES AFTER VF RECEIVES A MAJORITY OF THE SHARES THE REMAINING NUTMEG SHARES WILL BE CONVERTED INTO THE RIGHT TO RECEIVE 1750 IN CASH NUTMEG CHAIRMAN RICHARD E JACOBSON AND PRESIDENT MARTIN G JACOBSON HAVE GRANTED VF OPTIONS TO ACQUIRE ABOUT 189 OF NUTMEG'S SHARES AND VF ALSO HAS AN OPTION TO ACQUIRE ABOUT 2980000 AUTHORIZED BUT UNISSUED SHARES OF NUTMEG AMOUNTING TO ABOUT 138 OF THE COMPANY NUTMEG BASED IN TAMPA FLA HAD NET INCOME OF 109 MILLION OR 58 CENTS A SHARE FOR THE NINE MONTHS ENDED OCT 30 ON SALES OF 144 MILLION VF AN APPAREL CONCERN SAID THE ACQUISITION WILL ESTABLISH THE COMPANY AS A LEADING PLAYER IN THE LICENSEDSPORTSAPPAREL INDUSTRY AND WILL FURTHER STRENGTHEN ITS KNITWEAR BUSINESS LAWRENCE R PUGH VF CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE ACQUISITION WILL MAKE A POSITIVE CONTRIBUTION TO 1994 EARNINGS VF HAD NET INCOME OF 1853 MILLION OR 286 A SHARE ON 322 BILLION IN SALES FOR THE NINE MONTHS ENDED SEPT 30 VF ALSO SAID THE ACQUISITION WILL COMPLEMENT ITS PENDING PURCHASE OF HH CUTLER CO A GRAND RAPIDS MICH MAKER OF LICENSED BRANDNAME YOUTHWEAR APPAREL WITH PROJECTED 1993 REVENUE OF MORE THAN 200 MILLION WHILE CUTLER'S PRODUCTS ARE SOLD THROUGH CHAINS AND DISCOUNT STORES NUTMEG'S ADULT APPAREL IS MARKETED TO DEPARTMENT SPORTING GOODS AND ATHLETIC SPECIALTY STORES DIRECTORS OF VF AND NUTMEG HAVE APPROVED THE PROPOSAL J P MORGAN SECURITIES INC WILL ACT AS DEALERMANAGER FOR THE OFFER EXPECTED TO CLOSE IN MIDJANUARY 9312140137 931214 MARRIOTT COMPANIES PLANNING TO REDEEM NOTES DURING JANUARY WASHINGTON MARRIOTT INTERNATIONAL INC AND HOST MARRIOTT CORP SAID THEY WILL REDEEM ON JAN 25 MARRIOTT LIQUID YIELD OPTION NOTES DUE 2006 FOR 36760 PER 1000 PRINCIPAL AMOUNT THE ACCUMULATED PRINCIPAL AMOUNT OF THE LYONS CURRENTLY OUTSTANDING WILL TOTAL ABOUT 1967 MILLION ON THE REDEMPTION DATE MARRIOTT INTERNATIONAL'S SHARE OF THE OBLIGATION IS 177 MILLION AND HOST MARRIOTT'S IS 197 MILLION THE LYONS ARE CONVERTIBLE INTO COMMON STOCK OF THE TWO COMPANIES AT A RATE OF 13277 SHARES OF EACH COMPANY FOR EACH 1000 OF NOTES IF ALL NOTES WERE CONVERTED TO COMMON STOCK IT WOULD INCREASE THE TOTAL SHARES OUTSTANDING FOR EACH COMPANY BY ABOUT SEVEN MILLION EACH COMPANY CURRENTLY HAS ABOUT 119 MILLION COMMON SHARES OUTSTANDING CHEMICAL BANK IS THE TRUSTEE FOR THE NOTES MARRIOTT INTERNATIONAL IS INVOLVED IN LODGING AND SERVICES MANAGEMENT WHILE HOST MARRIOTT DEALS IN REAL ESTATE OWNERSHIP AIRPORT AND TOLLROAD CONCESSIONS 9312140136 931214 WORLD MARKETS TOKYO EQUITIES RISE ON HOPES FOR RESUSCITATING ECONOMY SEVERAL ASIAN BOURSES RALLY TO HIGHS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS EDGED UP MONDAY HELPED BY REPORTS THAT A JAPANESE GOVERNMENT ADVISORY COMMISSION THIS WEEK WILL RECOMMEND INCOMETAX CUTS AND OTHER STEPS TO STIMULATE THE ECONOMY SEVERAL ASIAN BOURSES SET 1993 OR ALLTIME HIGHS LED BY EQUITIES IN TAIPEI MANILA AND SINGAPORE BUT LONDON PRICES FELL AS SHARES GOING EXDIVIDEND DAMPED THE MARKET WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11050 UP 025 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS CASINOS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 21896 UP 625 OR 29 WITH GENTING OF MALAYSIA POSTING A 10 GAIN IN ITS LOCAL CURRENCY ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS TRAILED AT 6739 DOWN 150 OR 22 WITH ACUSON OF THE US SLIDING 3 IN LOCAL CURRENCY THE MARKET PERKED UP SHARPLY ON NEWS REPORTS THAT A JAPANESE ECONOMICREFORM ADVISORY PANEL ON THURSDAY WILL URGE A REDUCTION SOON IN INCOME TAXES PRIOR TO INCREASES IN THE SALES TAX BUT PROFITTAKING SET IN WHEN THE NIKKEI TOPPED 17500 AS INVESTORS STILL WEREN'T CONVINCED THE GOVERNMENT WILL MOVE QUICKLY TO BREATHE LIFE INTO THE GASPING JAPANESE ECONOMY HIGHTECHNOLOGY STOCKS WERE AMONG THE NOTABLE GAINERS BUOYED BY THE JAPANESE YEN'S WEAKNESS IN FOREIGNCURRENCY MARKETS A WEAKER YEN BOOSTS EXPORTERS' RETURNS ON OVERSEAS SALES WHEN CONVERTED INTO THE JAPANESE CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 67 POINTS TO 32546 THE FT 30STOCK INDEX FELL 63 POINTS TO 24533 VOLUME WAS 6536 MILLION SHARES DOWN FROM 8625 MILLION SHARES IN THE PREVIOUS SESSION A DRAG ON THE MARKET CAME FROM SEVERAL STOCKS THAT WENT EXDIVIDEND DURING THE SESSION WHICH ALSO BEGAN A NEW TRADING ACCOUNT INVESTORS BUYING THOSE STOCKS NO LONGER MAY CLAIM THE MOST RECENT DIVIDEND PAYOUT AND THIS PUSHED THEIR PRICES LOWER ALSO SHAVING THE FT 100 BY NINE POINTS WATER SHARES THOUGH SEVERAL WENT EXDIVIDEND FARED WELL ON WEEKEND NEWS THAT THE EUROPEAN COMMUNITY WOULD ABANDON DIRECTIVES ON THE WATER INDUSTRY THAT COULD HAVE INFLATED CONSUMERS' WATER RATES SEVERAL BRITISH WATER COMPANIES HAVE LOST LEGAL BATTLES AGAINST THE EC ON WATER STANDARDS MANY STOCKMARKET PLAYERS WERE MARKING TIME AHEAD OF TOMORROW'S DEADLINE ON A WORLD TRADELIBERALIZATION ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN FRANKFURT STOCK PRICES GAINED AS PARTICIPANTS MANEUVERED POSITIONS AHEAD OF A TECHNICAL DEADLINE ON THE FUTURES AND OPTIONS EXCHANGE THE DAX 30STOCK INDEX ROSE 1162 POINTS TO 217275 THE MARKET IS EXPECTED TO BE STRONGLY INFLUENCED THIS WEEK BY SOCALLED TRIPLEWITCHING EXPIRATIONS OF MONTHLY AND QUARTERLY STOCK OPTIONS THAT COINCIDE WITH FRIDAY'S EXPIRATION OF THE QUARTERLY CONTRACT ON DAX FUTURES MOST EUROPEAN MARKETS WERE LISTLESS AS INVESTORS AWAITED THE OUTCOME OF GATT TALKS AND MONETARYPOLICY MOVES ON THE CONTINENT FOR EXAMPLE PARIS STOCKS FINISHED LITTLE CHANGED AS BUYERS STAYED OUT MONITORING GATT NEGOTIATIONS AND AMSTERDAM SHARES WERE MIXED TO WEAKER AS INVESTORS AWAITED DUTCH AND GERMAN ECONOMIC INDICATORS THIS WEEK AND SIGNS OF INTERESTRATE CUTS BY THOSE TWO GOVERNMENTS IN MILAN EQUITIES GAINED ON SENTIMENT BOOSTED BY FRIDAY'S ITALIAN TREASURYBILL AUCTION RESULTS WHICH SHOWED RATES AT A RECORD LOW IN MADRID SHARES ROSE BOOSTED BY EXPECTATIONS OF LOW GROWTH IN SPAIN'S INFLATION RATE LAST MONTH AND HOPES FOR A CUT IN THE SPANISH CENTRAL BANK'S BENCHMARK INTERVENTION RATE TODAY IN STOCKHOLM PRICES RECOVERED FOLLOWING THREE CONSECUTIVE LOSING SESSIONS THE REBOUND WAS LED BY THE TELECOMMUNICATIONS SECTOR AND BY LOWER SWEDISH INTEREST RATES IN ZURICH STOCKS ROSE PACED BY FINANCIAL AND CHEMICAL ISSUES WITH THE FOCUS ON THE BANKING SECTOR EVEN THOUGH THE SWISS CENTRAL BANK LAST WEEK DASHED HOPES FOR QUICK INTERESTRATE CUTS HOPES FOR A GATT ACCORD LIFTED SENTIMENT IN SYDNEY EQUITIES GAINED SUPPORTED BY A STRONGER GOLD PRICE A RISE IN BASEMETAL PRICES AND HEAVY TRADING IN STOCKINDEX FUTURES CONTRACTS IN HONG KONG STOCKS ROSE TAKING THE MAIN INDEX UP TO ITS FIFTH CONSECUTIVE RECORD HIGH DESPITE PROFITTAKING FOLLOWING LAST WEEK'S 10 GAIN THOUGH OTHER INDEXES HAD MIXED PERFORMANCES IN SINGAPORE SHARES RALLIED 11 TO A RECORD FINISH IN A BUYING FRENZY THAT RESULTED PARTLY FROM SPECULATIVE BUYING BY RETAIL INVESTORS WHICH OVERWHELMED SOME PROFITTAKING IN TAIPEI STOCKS SKYROCKETED 38 TO AN EIGHTMONTH HIGH AS THE MARKET REMAINED STRONGLY SUPPORTED BY EXPANDING FLOW OF CAPITAL INTO EQUITIES FINANCIAL ISSUES RACKED UP A 48 GAIN AND THE CEMENT AND CONSTRUCTION SECTORS RALLIED 39 TURNOVER JUMPED TO A NINEMONTH HIGH OF 25 BILLION SHARES FOREIGN INSTITUTIONAL INVESTORS HAVE REMITTED MILLIONS OF US DOLLARS INTO TAIWAN FOR STOCK INVESTMENTS AND TAIWAN'S INVESTMENT TRUST COMPANIES ARE EXPECTED TO BRING IN A TOTAL OF 94 MILLION MEANWHILE TAIWAN BANKS FORMED IN RECENT YEARS WILL BE ALLOWED EARLY NEXT YEAR TO INVEST AS MUCH AS 60 MILLION IN THE MARKET IN MANILA SHARES SOARED 26 TO A RECORD HIGH IN BRISK TRADING BUOYED BY THE STRONG PERFORMANCES ON OTHER ASIAN AND PACIFIC MARKETS BUT IN SEOUL STOCKS TUMBLED 19 ON MOUNTING FEARS OF A DROP IN THE BUYING BASE OF INSTITUTIONS CAUTIOUSNESS FOLLOWING THE MARKET'S RECENT SURGES WAS INTENSIFIED BY UNSUBSTANTIATED SPECULATION THAT TO BRAKE THE MARKET'S HEADY PACE A BIT THE SOUTH KOREAN GOVERNMENT MIGHT ORDER INSTITUTIONS INCLUDING BANKS AND SECURITIES HOUSES TO SELL STOCKHOLDINGS THAT EXCEED 60 OF THEIR TOTAL CAPITAL AMONG CORPORATE DEVELOPMENTS ELF AQUITAINE FELL 26 FRENCH FRANCS TO 4178 FRANCS 7194 THE FRENCH GOVERNMENT WHICH OWNS 508 OF THE ENERGY COMPANY SAID IT PLANNED TO KEEP BETWEEN 10 AND 15 AND A GOLDEN SHARE TO RETAIN CONTROLS UPON ELF'S PRIVATIZATION PLANNED FOR EARLY NEXT YEAR ECONOMICS MINISTRY APPROVAL WOULD BE REQUIRED FOR ANY SHAREHOLDER WHO EXCEEDS LEVELS OF 10 20 AND 33 OF CAPITAL OR VOTING RIGHTS THE GOVERNMENT WILL APPOINT TWO NONVOTING REPRESENTATIVES TO ELF'S BOARD AND RETAIN THE RIGHT TO BLOCK SALES OF KEY ASSETS 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 9312140135 931214 INTERNATIONAL SOUTH KOREA SAYS US OVERREACTS TO NORTH'S NUCLEARARMS EFFORTS THREAT TAKES A BACK SEAT TO TRADE LIBERALIZATION CORRUPTION CRACKDOWN BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE KOREANS WHO SPILLED INTO THE STREETS BY THE THOUSANDS YESTERDAY TO PLEAD FOR PROTECTION AND LEADERSHIP WEREN'T CONCERNED OVER NORTH KOREA'S MILITARY SEOUL IS IN ARTILLERY RANGE OF NORTH KOREA BUT THE PROTECTION THE DEMONSTRATORS WANTED WAS AGAINST RICE IMPORTS PYONGYANG'S NUCLEAR PROGRAM HAS CAUSED A DIPLOMATIC STORM IN WASHINGTON AND ELSEWHERE BUT IT TAKES A BACK SEAT IN SEOUL TO SUCH ISSUES AS TRADE LIBERALIZATION AND A CORRUPTION CRACKDOWN WAGED BY PRESIDENT KIM YOUNG SAM SOUTH KOREAN SECURITY OFFICIALS AND LAWMAKERS SAY WASHINGTON IS MISREADING PYONGYANG'S MOTIVES AND IS OVERREACTING TO ITS MILITARY CAPABILITY FEW OF THEM THINK NORTH KOREA IS PERILOUSLY CLOSE TO PRODUCING A DELIVERABLE ATOMIC BOMB OR THAT IT COULD MOUNT A SUSTAINABLE CONVENTIONAL ASSAULT ON THE SOUTH SOME PEOPLE IN WASHINGTON SEE THIS AS A CRISIS SITUATION BECAUSE THEY DON'T UNDERSTAND THE NATURE OF NORTH KOREAN PROPAGANDA SAYS A MEMBER OF SOUTH KOREA'S FOREIGN SERVICE THEY STILL SEE THINGS WITH A COLD WAR LENS IN THE LATEST EXAMPLE OF SOUTH KOREA'S RELATIVE CALM SEOUL'S NEWSPAPERS AND YONHAP NEWS AGENCY SCARCELY PAID ATTENTION TO DEFENSE SECRETARY LES ASPIN'S REMARK SUNDAY THAT NORTH KOREA ALREADY MIGHT POSSESS ONE NUCLEAR DEVICE YONHAP DIDN'T MENTION MR ASPIN'S STATEMENT AND THOSE NEWSPAPERS THAT CARRIED THE REMARK DIDN'T COMMENT ON IT THIS RELATIVE CALM REFLECTS A SURPRISING ROLE CHANGE BETWEEN SEOUL AND WASHINGTON THAT HAS BEEN PRECIPITATED BY NORTH KOREA'S NUCLEAR PROGRAM PAST SOUTH KOREAN LEADERS LIKE OTHER AMERICAN COLD WAR CLIENTS OFTEN HIGHLIGHTED THE COMMUNIST THREAT TO SECURE US AID AND SUPPORT NOW THE PATRON IS SOUNDING THE ALARM SOUTH KOREA IS FAR MORE ACCUSTOMED TO THE NORTH KOREAN STYLE OF NEGOTIATING THAN THE AMERICANS SAYS MICHAEL BREEN A SENIOR CONSULTANT AT MERIT CONSULTING WHICH PUBLISHES A MONTHLY NEWSLETTER ON NORTH KOREA THEY STILL SEE ROOM FOR A NEGOTIATED SETTLEMENT WHILE THE AMERICANS MIGHT BE LOSING PATIENCE IN MARCH PYONGYANG ANNOUNCED IT WAS PULLING OUT OF THE NUCLEAR NONPROLIFERATION TREATY APPARENTLY TO AVOID INSPECTIONS OF ITS ATOMIC FACILITIES NORTH KOREA IS RULED BY THE 81YEAROLD KIM IL SUNG WHO FOUNDED HIS STALINIST REGIME IN 1947 AND HIS SON AND HEIR APPARENT KIM JONG IL PYONGYANG INSISTS ITS NUCLEAR PROGRAM IS FOR PEACEFUL PURPOSES SOUTH KOREAN GOVERNMENT OFFICIALS ADMIT THEIR INTELLIGENCE ON NORTH KOREA IS NOT AS EXTENSIVE AS WASHINGTON'S THE US REGULARLY MONITORS SATELLITE PHOTOS OF WEAPONS INSTALLATIONS AND TROOP MOVEMENTS BUT THE SOUTH KOREANS SAY WASHINGTON TENDS TO TAKE TOO SERIOUSLY PYONGYANG'S WARNINGS OF A MILITARY RESPONSE SHOULD THE STANDOFF LEAD TO ECONOMIC SANCTIONS SOME HAVE EXPRESSED MILD IRRITATION THAT THE WHITE HOUSE APPEARS UNABLE TO PLUG LEAKS THAT HAVE LED TO WHAT ONE OFFICIAL CALLS IRRESPONSIBLE AND ALARMIST NEWS REPORTS ABOUT THE QUALITY OF NORTH KOREA'S WAR MACHINE NO ONE DISCOUNTS THE DESTRUCTIVE POTENTIAL OF THE NORTH KOREAN ARMY WHICH COMPRISES MORE THAN ONE MILLION REGULAR SOLDIERS AND MILITIAMEN AND A FORMIDABLE ARSENAL BUT NEITHER DO THEY BELIEVE REPORTS THAT SUGGEST THE COMBINED SOUTH KOREAN AND US FORCES WOULD CRUMBLE UNDER THE WEIGHT OF A NORTH KOREAN GROUND ASSAULT THEY SAY THE NORTH'S ACUTE ECONOMIC CRISIS WHICH EVEN PYONGYANG ACKNOWLEDGED AT AN ANNUAL PLENARY SESSION LAST WEEK HAS DRAINED THE ARMY OF THE RESOURCES IT WOULD NEED TO MOUNT SUCH AN ATTACK CHRONIC SHORTAGES OF FOOD MEDICINE AND FUEL HOBBLE MILITARY TRAINING WITHIN TWO TO THREE WEEKS THEIR FORCES WOULD RUN OUT OF STEAM FOR WANT OF OIL AND SPARE PARTS SAYS AN OFFICIAL AT THE MINISTRY OF NATIONAL UNIFICATION I DON'T THINK THEY HAVE A MIGHTY MILITARY SUCH CAPABILITY HAS TO BE BACKED UP BY A STRONG ECONOMY THAT IS NOT TO SAY THE SOUTH KOREANS ARE COUNSELING A SOFT LINE AGAINST NORTH KOREA ALTHOUGH OFFICIALS ARE DIVIDED OVER WHEN TO ABANDON THE CARROT IN FAVOR OF THE STICK FOREIGN MINISTER HAN SUNG JOO WARNED PYONGYANG LAST WEEK THAT TIME WAS RUNNING OUT FOR A DIPLOMATIC SOLUTION BUT EVEN HE SUGGESTS THE SITUATION IS NOT DIRE OF COURSE WE'RE VERY MUCH WORRIED ABOUT IT HE SAID IN AN INTERVIEW THIS YEAR BUT WE DON'T WANT TO ALARM THE PEOPLE UNNECESSARILY OR EXCESSIVELY AN EXAMPLE OF THE CONTRASTING ATTITUDES HERE AND IN THE US CAME IN OCTOBER REPORTS THAT NORTH KOREA WAS CONCENTRATING FORCES AT THE DEMILITARIZED ZONE SPARKED HANDWRINGING IN WASHINGTON BUT WERE LARGELY IGNORED IN SEOUL THE REPORTS OF NEW TROOP CONCENTRATIONS PROVED FALSE ALTHOUGH NORTH KOREAN FORCES HAVE BEEN POSITIONED ALONG THE BORDER IN A FORWARD POSITION FOR YEARS SIMILARLY SOUTH KOREAN INTELLIGENCE OFFICIALS DON'T BELIEVE PYONGYANG IS AS CLOSE TO COMPLETING A NUCLEAR BOMB AS SOME OF THEIR US COUNTERPARTS HAVE ESTIMATED MANY FEEL NORTH KOREA'S NUCLEAR PROGRAM IS PYONGYANG'S ULTIMATE BARGAINING CHIP WAGED TO WIN DIPLOMATIC AND ECONOMIC CONCESSIONS FROM THE US THEY ESTIMATE NORTH KOREA HAS SPENT 3 BILLION ON ITS NUCLEAR PROGRAM AND WOULD NEED TO SPEND ANOTHER 10 BILLION TO PRODUCE A BOMB WITHIN THE NEXT THREE TO FIVE YEARS SOUTH KOREAN OFFICIALS ALSO TEND TO DISMISS REPORTS THAT KIM JONG IL WILL BE TOPPLED BY THE MILITARY SOON AFTER HIS FATHER'S DEATH ALTHOUGH HE IS RESENTED BY SOME ARMY OFFICERS AND ISN'T IDOLIZED LIKE HIS FATHER THESE OFFICIALS SAY THE YOUNGER MR KIM HAS CONSOLIDATED HIS POSITION WITH THE STATE SECURITY APPARATUS KIM JONG IL IS APPOINTING LEADERS NOW SO HIS AUTHORITY IS CLEARLY WELLESTABLISHED SAYS THE MINISTRY OF UNIFICATION OFFICIAL WHO REQUESTED ANONYMITY WE CAN SAFELY SAY THAT AFTER THE FATHER DIES THE SON WILL BE IN POWER FOR AT LEAST FIVE YEARS GOVERNMENT OFFICIALS DOUBT PRESS REPORTS OF FOOD RIOTS AND ARMY REVOLTS IN REMOTE PARTS OF THE COUNTRY THEY GENERALLY RULE OUT THE CHANCES OF A POPULAR UPRISING AGAINST THE REGIME BECAUSE OF THE OMNIPRESENCE OF NORTH KOREA'S INTERNAL SECURITY FORCE 9312140134 931214 WHO'S NEWS HARLEYDAVIDSON INC HARLEYDAVIDSON INC MILWAUKEE RICHARD G SKIP LEFAUVE 59 YEARS OLD AND JAMES A NORLING 51 WERE ELECTED DIRECTORS OF THIS MOTORCYCLE MAKER THEIR SELECTION EXPANDS THE BOARD TO 10 MEMBERS MR LEFAUVE IS PRESIDENT OF SATURN CORP AND MR NORLING IS PRESIDENT OF MOTOROLA EUROPE MIDDLE EAST & AFRICA 9312140133 931214 TSUNAMI TO SELL SECURITIES UNIT PHOENIX TSUNAMI CAPITAL CORP PLANS TO SELL ITS PARADISE VALLEY SECURITIES OPERATING UNIT TO A GROUP CONSISTING OF MANAGEMENT AND EMPLOYEES FOR 11 MILLION IN A NEWS RELEASE THE COMPANY SAID IT NOW WILL SEEK TO MERGE OR TO ACQUIRE A BUSINESS THAT WILL PROVIDE MORE VALUE TO ITS STOCKHOLDERS 9312140132 931214 ACQUISITION BY INTUIT MENLO PARK CALIF INTUIT INC SAID ITS ACQUISITION OF CHIPSOFT INC WAS COMPLETED THE MAKER OF PERSONALFINANCE AND SMALLBUSINESS SOFTWARE ACQUIRED THE SAN DIEGO MAKER OF CONSUMER TAX SOFTWARE IN A STOCK SWAP VALUED AT 2813 MILLION BASED ON YESTERDAY'S CLOSING PRICE OF INTUIT STOCK AT 3875 A SHARE IN NASDAQ STOCK MARKET TRADING 9312140131 931214 WHO'S NEWS CR BARD INC CR BARD INC MURRAY HILL NJ BENSON F SMITH 46 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT WITH WORLDWIDE RESPONSIBILITY FOR OPERATIONS AND TIMOTHY M RING 36 WAS NAMED GROUP VICE PRESIDENT WITH RESPONSIBILITY FOR INTERNATIONAL OPERATIONS MR SMITH WAS GROUP VICE PRESIDENT OF THIS HEALTHCARE PRODUCTS MAKER MR RING HAD BEEN VICE PRESIDENT HUMAN RESOURCES FOR THE COMPANY 9312140130 931214 WHO'S NEWS COMDISCO INC CHIEF PONTIKES UNDERGOING TREATMENT FOR CANCER ROSEMONT ILL COMDISCO INC DISCLOSED THAT ITS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT KENNETH N PONTIKES HAS BEEN DIAGNOSED WITH COLON CANCER AND IS UNDERGOING TREATMENT MR PONTIKES 53 YEARS OLD IS EXPECTED TO RETURN TO WORK NEXT MONTH THE HIGHTECH EQUIPMENT LESSOR SAID THE COMPANY SAID ITS BOARD NAMED JACK SLEVIN 57 INTERIM CHIEF OPERATING OFFICER AND HEAD OF THE THREEMEMBER OFFICE OF THE PRESIDENT WHILE MR PONTIKES HOLDS THE TITLE OF PRESIDENT THE OFFICE FORMED IN 1992 HAS MANAGED COMDISCO'S DAYTODAY AFFAIRS AND SET STRATEGIC DIRECTION MR PONTIKES SAID DURING HIS ABSENCE HE SAID THE GROUP WILL CONTINUE TO IMPLEMENT THE DIRECTION WE HAVE SET FOR THE COMPANY COMDISCO ALSO NAMED TO ITS BOARD NICHOLAS K PONTIKES THE CHAIRMAN'S 29YEAROLD SON AND HEAD OF THE COMPANY'S COMDISCO DISASTER RECOVERY SERVICES UNIT HIS ELECTION BOOSTS BOARD MEMBERSHIP TO 13 9312140129 931214 FINANCING BUSINESS NATIONAL BANK OF CANADA NATIONAL BANK OF CANADA SAID IT SOON WILL FILE A PRELIMINARY SHORTFORM PROSPECTUS WITH SECURITIES AUTHORITIES IN CANADA FOR THE DISTRIBUTION OF 125 MILLION CANADIAN DOLLARS US94 MILLION IN 75 DEBENTURES DUE IN 2003 THE MONTREAL BANK SAID THE PURPOSE OF THE OFFERING IS TO ENLARGE ITS CAPITAL BASE 9312140128 931214 OLD KENT BUYS MORTGAGE FIRM GRAND RAPIDS MICH OLD KENT FINANCIAL CORP A BANK HOLDING COMPANY WITH 95 BILLION IN ASSETS ACQUIRED PRINCETON FINANCIAL CORP AN ORLANDO FLA MORTGAGE COMPANY WITH 13 RETAIL OFFICES IN FLORIDA TERMS OF THE DEAL WEREN'T DISCLOSED OLD KENT SAID IT EXPECTS THE ACQUISITION WILL FIT STRATEGICALLY WITH ITS OLD KENT MORTGAGE CO UNIT WHICH CURRENTLY SERVICES MORE THAN 4 BILLION IN MORTGAGE LOANS THE ACQUISITION IS SUBJECT TO SHAREHOLDER APPROVAL 9312140127 931214 POLITICS & POLICY CLINTON PUSHES HEALTHCARE PLAN AS WAY TO SLOW RISE IN ENTITLEMENT SPENDING BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL BRYN MAWR PA PRESIDENT CLINTON USED A TELEVISED FORUM AIMED AT REDUCING THE COST OF FEDERAL ENTITLEMENT PROGRAMS AS AN OPPORTUNITY TO PITCH HIS HEALTHCARE PLAN OVER DEFICITREDUCTION PLANS THAT WOULD HIT THE MIDDLE CLASS HARDER SEVERAL OTHER POLITICIANS HERE PROMOTED THEIR OWN COSTREDUCTION PROGRAMS WHICH DIRECTLY CUT OR LIMIT THE TWO FASTESTGROWING ENTITLEMENT PROGRAMS MEDICARE AND MEDICAID THE PRESIDENT'S SPEECH AND SUBSEQUENT PARTICIPATION IN A PANEL DISCUSSION WERE DESIGNED TO CHALLENGE THESE ALTERNATIVES AS OVERLY HARSH MEDICALENTITLEMENT SPENDING IS GOING UP LIKE A ROCKET MR CLINTON SAID BUT THE WAY TO SLOW IT HE ASSERTED IS TO GO BACK AND HAVE COMPREHENSIVE HEALTHCARE REFORM HIS PLEA IS TIMELY LAWMAKERS ARE CONSIDERING SEVERAL PLANS THAT WOULD CURTAIL MEDICARE AND MEDICAID SPENDING BUT NOT ADDRESS THE OVERALL HEALTHCARE SYSTEM THESE INCLUDE ENTITLEMENT SPENDING LIMITS SUGGESTED BY SENS SAM NUNN D GA AND PETE DOMENICI R NM AS WELL AS A DRIVE TO ADD A BALANCED BUDGET AMENDMENT TO THE CONSTITUTION MR CLINTON OPPOSES THESE EFFORTS INSISTING THAT THE BEST WAY TO SLOW THE GROWTH OF MEDICARE AND MEDICAID EXPENDITURES IS TO REDUCE THE INFLATION RATE OF ALL MEDICAL COSTS BUT BY TAKING THAT APPROACH CRITICS ARGUE THAT MR CLINTON POSTPONES MUCH OF THE DEFICITREDUCTION THAT THEY CLAIM IS AVAILABLE IN THE FASTRISING ENTITLEMENT EXPENDITURES MEMBERS OF THE SOCALLED CONCORD COALITION WOULD IN PART REDUCE ENTITLEMENT BENEFITS TO MIDDLE AND UPPERMIDDLEINCOME AMERICANS A PROPOSAL THAT MR CLINTON ALSO REJECTS LET US NOT MAKE OUR MIDDLECLASS SQUEEZE PROBLEM WORSE THAN IT IS ALREADY MR CLINTON SAID ADDING THAT IT IS BECOMING VERY DIFFICULT FOR WORKING PEOPLE TO SUSTAIN A MIDDLECLASS WAY OF LIFE HE ARGUED THAT SOCIAL SECURITY AND MEDICARE DESPITE THEIR FLAWS ARE EXAMPLES OF SUCCESSFUL SOCIAL PROGRAMS BECAUSE OF THESE PROGRAMS WE ARE A HEALTHIER PEOPLE WE ARE A MORE UNIFIED COUNTRY WE TREAT OUR ELDERLY WITH GREATER DIGNITY BY HAVING ALLOWED THEM TO EARN A DECENT RETIREMENT AND TO MAINTAIN A MIDDLECLASS STANDARD OF LIVING INDEPENDENT OF WHATEVER THEIR CHILDREN ARE REQUIRED TO DO HE SAID THE PRESIDENT TRAVELED HERE TO PHILADELPHIA'S UPPERCRUST MAIN LINE TO PAY BACK A POLITICAL DEBT TO FRESHMAN CONGRESSWOMAN DEMOCRAT MARJORIE MARGOLIESMEZVINSKY HER SURPRISE LASTMINUTE VOTE LAST SUMMER MEANT VICTORY FOR MR CLINTON'S CONTROVERSIAL DEFICITREDUCTION PACKAGE SHE CAST HER VOTE AT CONSIDERABLE POLITICAL RISK AFTER THE PRESIDENT PROMISED TO ATTEND YESTERDAY'S FORUM HE AND SEVERAL OF HIS ADMINISTRATION'S TOP OFFICERS SPOKE AT THE DAYLONG SESSION AS MUCH TO BOLSTER HER SHAKY REELECTION CHANCES AS TO PROMOTE HEALTHCARE OVERHAUL AND ANOTHER OF MR CLINTON'S DOMESTIC PRIORITIES WELFARE OVERHAUL ANOTHER POINT STRESSED BY THE PRESIDENT AND OTHERS WAS THAT FURTHER DEFICITREDUCTION EFFORTS WOULD THREATEN THE ADMINISTRATION'S SOCALLED INVESTMENTS WHICH ARE INCREASED SPENDING FOR SOCIAL PROGRAMS SUCH AS JOB TRAINING AND HEAD START THE PRESIDENT IS TRYING TO FIND THE FUNDS TO PAY FOR THESE PROGRAMS AS HE WORKS ON HIS BUDGET PROPOSAL FOR FISCAL 1995 WHICH BEGINS NEXT OCT 1 9312140126 931214 LAW SUPREME COURT IMPOSES NEW LIMITATION ON USE OF FORFEITURE LAWS IN DRUG CASES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT IMPOSED ANOTHER CONSTITUTIONAL RESTRAINT ON THE USE OF CIVILFORFEITURE LAWS IN DRUG PROSECUTIONS A SHARPLY DIVIDED HIGH COURT SAID THE FEDERAL GOVERNMENT MAY NOT SEIZE REAL ESTATE LINKED TO DRUG TRAFFICKING UNLESS THE OWNER FIRST GETS A COURT HEARING YESTERDAY'S 54 RULING FOLLOWS TWO DECISIONS LAST TERM IN WHICH THE JUSTICES SAID THAT THE CONSTITUTIONAL PROHIBITION ON EXCESSIVE FINES APPLIES TO FORFEITURE EFFORTS ARMED WITH SWEEPING FORFEITURE LAWS PASSED IN THE 1980S FEDERAL STATE AND LOCAL OFFICIALS HAVE MADE CONFISCATION OF DEFENDANTS' PROPERTY A MAJOR PART OF DRUGLAW ENFORCEMENT BUT THE SUPREME COURT SAID YESTERDAY THAT THE CONSTITUTIONAL GUARANTEE OF DUE PROCESS OBLIGES THE GOVERNMENT BEFORE SEIZING REAL ESTATE TO NOTIFY DEFENDANTS AND ALLOW THEM TO OPPOSE SEIZURES IN COURT JUSTICE DEPARTMENT OFFICIALS SAID THE SETBACK WON'T HINDER THEM SIGNIFICANTLY WE WILL CONTINUE TO USE THE FORFEITURE LAWS VIGOROUSLY SAID DEPARTMENT SPOKESMAN CARL STERN HE COMPARED THE RULING TO TRAFFIC REGULATIONS JUST BECAUSE THERE ARE RED LIGHTS AND STOP SIGNS DOESN'T MEAN YOU DON'T DRIVE DOWN THE STREET THE SUPREME COURT CASE INVOLVED A HAWAII MAN WHO PLEADED GUILTY IN 1985 TO PROMOTING A HARMFUL DRUG AFTER POLICE FOUND 89 POUNDS OF MARIJUANA AND HASHISH AT HIS HOUSE MORE THAN FOUR YEARS LATER FEDERAL AGENTS GOT A JUDGE'S PERMISSION TO SEIZE HIS HOUSE AND THE SURROUNDING FOURACRE PROPERTY IN CONNECTION WITH A CIVIL PROCEEDING AIMED AT PERMANENTLY CONFISCATING THE REAL ESTATE THE DEFENDANT WHO WAS LIVING IN NICARAGUA AND HAD RENTED THE HOUSE TO TENANTS CHALLENGED THE SEIZURE HE ARGUED THAT HE DESERVED A CHANCE TO OPPOSE IT IN COURT THE HIGHCOURT MAJORITY SUPPORTED THIS POSITION THE RIGHT TO PRIOR NOTICE AND A HEARING IS CENTRAL TO THE CONSTITUTION'S COMMAND OF DUE PROCESS JUSTICE ANTHONY KENNEDY SAID IN HIS OPINION FOR THE MAJORITY HE STRESSED THAT THIS APPROACH WOULD PREVENT THE GOVERNMENT FROM CONFISCATING REAL ESTATE FROM INNOCENT PEOPLE JUSTICE KENNEDY DISTINGUISHED THE SEIZURE OF REAL ESTATE FROM THAT OF A BOAT OR OTHER PROPERTY THAT CAN BE EASILY MOVED OR DESTROYED BEFORE FORFEITURE PROCEEDINGS ARE COMPLETED UNDER SUCH EXIGENT CIRCUMSTANCES THE GOVERNMENT MAY SEIZE PROPERTY WITHOUT NOTIFYING DEFENDANTS HE SAID JOINING THE MAJORITY OPINION ON THE DUEPROCESS ISSUE WERE JUSTICES HARRY BLACKMUN JOHN PAUL STEVENS DAVID SOUTER AND RUTH BADER GINSBURG DISSENTING FROM THIS PORTION WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR ANTONIN SCALIA AND CLARENCE THOMAS IN ANOTHER PART OF THE DECISION THE HIGH COURT UNANIMOUSLY RULED THAT THE DELAY IN THE SEIZURE DIDN'T BY ITSELF REQUIRE DISMISSAL OF THE GOVERNMENT'S FORFEITURE ACTION DESPITE INTERNAL GOVERNMENT RULES REQUIRING PROMPT HANDLING OF SUCH CASES THE FIVEYEAR STATUTE OF LIMITATIONS IS THE APPLICABLE TIME LIMIT THE JUSTICES SAID THE SUPREME COURT SENT THE CASE BACK TO A LOWER COURT FOR FURTHER PROCEEDINGS 9312140125 931214 ALLIEDSIGNAL SEES 4THQUARTER NET RISING 22 TO 26 BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ALLIEDSIGNAL INC CHAIRMAN LAWRENCE A BOSSIDY SAID HE EXPECTS THE COMPANY TO POST EARNINGS OF BETWEEN 120 AND 124 A SHARE FOR THE FOURTHQUARTER AN INCREASE OF BETWEEN 22 AND 26 FROM A YEAR AGO MR BOSSIDY ALSO SAID THE COMPANY IS CONSIDERING SPLITTING ITS STOCK THE PRICE OF WHICH HAS STEADILY RISEN AS THE COMPANY'S PERFORMANCE HAS IMPROVED SINCE JULY THE STOCK HAS BEEN TRADING IN THE LOW 70S MORE THAN DOUBLE THE ROUGHLY 33 CLOSE THE DAY BEFORE MR BOSSIDY A FORMER GENERAL ELECTRIC CO VICE CHAIRMAN BECAME ALLIEDSIGNAL'S CHIEF EXECUTIVE ON JULY 1 1991 YESTERDAY IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE ALLIEDSIGNAL SHARES WERE QUOTED AT 74875 DOWN 875 CENTS IN AN INTERVIEW MR BOSSIDY SAID THE COMPANY IS EVALUATING WHAT IT WILL ACCOMPLISH FROM SPLITTING THE STOCK WHILE KEEPING IN MIND THE NEED TO MAKE THE STOCK MORE ACCESSIBLE AND ATTRACTIVE TO SMALL SHAREHOLDERS HE SAID THE COMPANY HASN'T PRESENTED THE PROPOSAL TO THE BOARD YET I THINK IF THE STOCK CONTINUES TO PERFORM THIS WAY WE WILL PRESENT TO THE BOARD IN THE FIRST HALF OF 1994 ALLIEDSIGNAL BASED IN MORRIS TOWNSHIP NJ MAKES ENGINEERED MATERIALS AUTOMOTIVE AND AEROSPACE PRODUCTS MR BOSSIDY SAID THE COMPANY'S RESULTS MAY BE AFFECTED BY A NEW ACCOUNTING STANDARD THE COMPANY IS CONSIDERING ADOPTING RELATING TO SEVERANCE PAYMENTS THAT WOULD REDUCE FOURTHQUARTER NET INCOME BY FIVE CENTS A SHARE HE SAID IN THE 1992 FOURTHQUARTER THE COMPANY EARNED 138 MILLION OR 98 CENTS A SHARE AFTER CERTAIN GAINS AND SPECIAL CHARGES ON SALES OF 305 BILLION MR BOSSIDY SAID THAT A CONTINUING WEAKNESS IN AEROSPACE AND THE EUROPEAN AUTOMOTIVE MARKET IN THE CURRENT QUARTER WILL RESULT IN THE COMPANY'S 1993 SALES DECLINING TWO TO THREE PERCENT ALLIEDSIGNAL'S EARNINGS FOR THE YEAR HOWEVER WILL INCREASE AN ESTIMATED 22 TO 23 BEFORE THE POSSIBLE ACCOUNTING CHANGE HE SAID THE PROFIT IMPROVEMENT WILL COME FROM PRODUCTIVITY INCREASES AND NEW MATERIALS MANAGEMENT APPROACHES THE COMPANY HAS ADOPTED WE BELIEVE WHAT WE HAVE DONE IN 1993 WILL PAY DIVIDENDS IN TERMS OF HIGHER SALES IN 1994 HE SAID HE SAID THAT HE EXPECTS STRONG SALES OF ENGINEERED MATERIALS AND AUTOMOTIVE PRODUCTS IN NORTH AMERICA TO CONTINUE NEXT YEAR HE SAID THE COMPANY IS TARGETING AN EARNINGS INCREASE OF 13 TO 17 FOR 1994 IN REVIEWING THE CURRENT QUARTER MR BOSSIDY SAID THE ENGINEERED MATERIALS DIVISION WHICH LAST YEAR HAD SALES OF ABOUT 26 BILLION HAS POSTED THE STRONGEST SALES GAIN IN COMPARISON WITH THE COMPANY'S OTHER OPERATIONS THE AUTOMOTIVE DIVISION IS BENEFITING FROM A 12 INCREASE IN NORTH AMERICAN AUTO AND LIGHTTRUCK PRODUCTION IN THE FOURTH QUARTER BUT ITS OVERALL PERFORMANCE IS DAMPED BY WEAK SALES IN EUROPE 9312140124 931214 INTERNATIONAL ISRAELPLO PACT IS STALLED BY VIOLENCE RELATED TO PROBLEM OF JEWISH SETTLERS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL NEVEH DEKALIM GAZA STRIP A WAVE OF VIOLENCE THAT HAS SHAKEN THE ISRAELPALESTINE LIBERATION ORGANIZATION PEACE ACCORD CONTRIBUTED TO A DELAY IN IMPLEMENTING ITS PALESTINIAN AUTONOMY PLAN A PALESTINIAN DRIVING A STOLEN AMBULANCE RIGGED WITH EXPLOSIVES PLOWED INTO AN ISRAELI ARMY JEEP KILLING HIMSELF AND INJURING A SOLDIER TWO PALESTINIANS WERE KILLED IN A SHOOTOUT WITH ISRAELI FORCES IN GAZA DEMONSTRATIONS WERE TRIGGERED BY THE NEWS THAT ISRAELI FORCES WOULD NOT BEGIN TO WITHDRAW FROM GAZA AND THE WEST BANK CITY OF JERICHO YESTERDAY AS AGREED UNDER THE TERMS OF THE ACCORD ISRAELI PRIME MINISTER YITZHAK RABIN AND PLO HEAD YASSER ARAFAT APPROVED A 10DAY POSTPONEMENT IN THE HOPES OF FINDING A WAY TO CLOSE THE GAPS ON SUCH ISSUES AS THE SIZE OF JERICHO AND CONTROL OVER BORDER CROSSINGS BETWEEN THE OCCUPIED TERRITORIES AND ARAB NATIONS FORTYFOUR PALESTINIANS AND 14 ISRAELIS HAVE DIED IN THE VIOLENCE SINCE ISRAEL AND THE PLO SIGNED THEIR PEACE AGREEMENT OPPONENTS OF THE ACCORD SAY THE DELAY PROVES THE AGREEMENT IS IMPOSSIBLE TO IMPLEMENT AND EVEN SUPPORTERS ACKNOWLEDGE THAT THE TENSION BODES ILL FOR THE LATER NEGOTIATIONS WHEN THE TWO SIDES ARE SUPPOSED TO TACKLE ONE OF THE MAJOR PROBLEMS WHAT TO DO ABOUT JEWISH SETTLEMENTS IN AREAS ISRAEL IS HANDING OVER TO THE PLO PLACES LIKE NEVEH DEKALIM THIS IS NOT THE FIRST TIME THAT MANY HERE IN GAZA'S LARGEST JEWISH SETTLEMENT HAVE FACED THE PROSPECT OF BEING MOVED THE SETTLEMENT ON THE EDGE OF A PALESTINIAN REFUGEE CAMP IS 25 MILES FROM THE FORMER SITE OF YAMIT A TOWN IN THE SINAI DESERT TO THE SOUTH ELEVEN YEARS AGO ISRAEL WITHDREW FROM THE SETTLEMENT AS PART OF THE CAMP DAVID PEACE TREATY WITH EGYPT NEVEH DEKALIM WAS BUILT BY THOSE WHO LEFT YAMIT MANY OF THE FIRST HOMES WERE CONSTRUCTED FROM PREFABRICATED WALLS THAT HAD BEEN USED IN YAMIT EVERY YEAR ON THE ANNIVERSARY OF YAMIT'S DESTRUCTION THE TOWN'S MAIN JEWISH RELIGIOUS SCHOOL YESHIVAT YAMIT HOLDS A DAYLONG CEREMONY WHICH INCLUDES READINGS FROM THE BIBLE AND HOME MOVIES OF LIFE IN YAMIT THE BACK WALL OF YESHIVAT YAMIT IS BUILT IN THE SHAPE OF A HUGE STAR OF DAVID AND THE SCHOOL'S LOBBY IS DEVOTED TO A HUGE SCULPTURE COMMEMORATING THE DAY IN APRIL 1982 WHEN THE ISRAELI ARMY FORCIBLY EVACUATED THE SETTLERS OF YAMIT HOW TO PROVIDE SECURITY FOR SETTLERS IS ONE OF THE STUMBLING BLOCKS IN IMPLEMENTING THE ACCORD FOR NOW THE 16 JEWISH SETTLEMENTS IN GAZA WILL REMAIN BUT THE PALESTINIANS SAY THAT EVENTUALLY THEY MUST BE REMOVED YAMIT THE FIRST ISRAELI SETTLEMENT EVER VOLUNTARILY REMOVED PROVED THAT THE ZIONIST IDEAL OF CREATING FACTS ON THE GROUND COULD BE UNDONE FOR THE JEWISH SETTLERS IN THE GAZA STRIP YAMIT IS A REMINDER THAT OTHER WITHDRAWALS ARE POSSIBLE YAMIT HAPPENED SO QUICKLY AND BY THE TIME PEOPLE WOKE UP TO THE DANGER IT WAS TOO LATE SAYS DATYA HERSKOVITZ WHO WORKS IN THE NEVEH DEKALIM MUNICIPALITY WE STILL FEAR THAT SOMETHING LIKE YAMIT COULD HAPPEN HERE BUT THE LONGER THIS AGREEMENT IS DELAYED THE MORE PEOPLE THERE ARE WHO EXPRESS OPPOSITION TO TEARING APART SETTLEMENTS YAMIT FILLED WITH BEACHES AND TENNIS COURTS WAS SECULAR BUT THAT DIDN'T STOP YESHIVAT YAMIT FROM ADOPTING IT AS A SYMBOL THE SCULPTURE IN THE YESHIVA IS ABOUT REMEMBRANCE SAYS RABBI ZVI SCHWARTZ WHO MOVED WITH THE SCHOOL TO GAZA THE CITY OF YAMIT WAS DESTROYED BUT THE IDEA OF YAMIT THE IDEA OF SETTLING THE LAND OF ISRAEL LIVES ON HERE IN NEVEH DEKALIM THE EVACUATION OF YAMIT TOOK THREE DAYS SOLDIERS CLASHED WITH MEMBERS OF THE ULTRANATIONALIST RELIGIOUS SETTLEMENT MOVEMENT WHO OCCUPIED PLACES VACATED BY RESIDENTS SETTLERS GATHERED ON ROOFTOPS AND THREW BUCKETS OF PAINT ON SOLDIERS WHILE NO ONE WAS SERIOUSLY INJURED THE IMAGES OF JEWISH SOLDIERS FIGHTING JEWISH SETTLERS REMAIN VIVID SAYS EITAN BENDAVID WHO LIVED IN YAMIT AND NOW OWNS THE PALM BEACH HOTEL HERE IT WON'T BE SO EASY TO REMOVE US LIKE IT WAS IN YAMIT PEOPLE WILL FIGHT FOR THEIR HOMES FOR RABBI AVRAHAM NACHSHON AND HIS WIFE GILA THE SITUATION RESEMBLES YAMIT THEY SAY PEOPLE WHO ONCE ANSWERED THE GOVERNMENT'S CALL TO CREATE A SECURITY BELT BETWEEN EGYPT AND ISRAEL HAVE COME TO BE SEEN AS OBSTACLES TO PEACE AFTER WHAT HAPPENED IN YAMIT THE GOVERNMENT IS SCARED TO TRY TO EVACUATE US SAYS RABBI NACHSHON SO INSTEAD THEY'LL LET THE ARABS DO IT FOR THEM THE PALESTINIANS WILL HAVE GUNS AND A POLICE THEY WILL TRY TO MAKE LIFE SO HARD FOR US THAT PEOPLE WILL FIND IT DIFFICULT TO HOLD ON AND WILL LEAVE WHEN ISRAELI SOLDIERS CAME TO EVACUATE YAMIT THE NACHSHONS LOCKED THEMSELVES IN THEIR HOME THE SOLDIERS BROKE DOWN THE DOOR THE COUPLE SAT IN THE LIVING ROOM WHILE THE SOLDIERS PACKED THEIR BELONGINGS INTO BOXES IN THE NACHSHON'S HOME IN NEVEH DEKALIM A PICTURE OF JERUSALEM CONSIDERED THE MOST HOLY CITY HANGS SIDEBYSIDE WITH A PICTURE OF YAMIT WHICH FOR MANY SETTLERS SEEMS TO RUN A CLOSE SECOND GILA NACHSHON POINTS OUT IN THE PICTURE WHERE HER FORMER HOME STOOD SHE SOUNDS LIKE HER NEIGHBORS IN THE PALESTINIAN REFUGEE CAMP NEXT DOOR WHO STILL DREAM OF RETURNING TO THEIR HOMES IN SUCH ISRAELI CITIES AS JAFFA AND HAIFA WE BELIEVE WE WILL RETURN TO YAMIT SOMEDAY SHE SAYS IF NOT US THEN OUR CHILDREN IF NOT OUR CHILDREN THEN OUR GRANDCHILDREN 9312140123 931214 AIR FRANCE PRESENTS UNIONS WITH GOALS FOR A TURNAROUND BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL AIR FRANCE CHAIRMAN CHRISTIAN BLANC MET WITH UNION LEADERS YESTERDAY AND PUT FORWARD A SET OF GOALS HE HOPES WILL TURN AROUND THE AIRLINE WHICH EXPECTS TO LOSE 75 BILLION FRENCH FRANCS 129 BILLION THIS YEAR AMONG THE MOST EYECATCHING IDEAS IN MR BLANC'S 13PAGE PAPER IS A PROPOSAL THAT HIGHLY PAID EMPLOYEES AGREE TO SALARY REDUCTIONS IN EXCHANGE FOR AN EQUITY STAKE IN THE AIRLINE THE OBJECTIVE IS THAT IN THREE YEARS WHEN THERE IS AN EFFECTIVE TURNAROUND A SIGNIFICANT SHARE OF THE COMPANY'S CAPITAL WILL BELONG TO THE STAFF THE AIRLINE SAID THE PAPER ALSO DIRECTLY ATTACKS THE CULTURE OF THE STATEOWNED AIRLINE WE HAVE TOO LONG BELIEVED THAT THE COMPANY IS PROTECTED THE PAPER STATES IT ATTACKS THE AIRLINE'S ORGANIZATION AS TOO CENTRALIZED TOO COMPARTMENTALIZED AND TOO INWARDLOOKING REPRESENTATIVES FROM AIR FRANCE'S FIVE MAIN UNIONS EITHER COULDN'T BE REACHED OR DECLINED TO COMMENT ON THE PAPER THE BROAD OBJECTIVES OF MR BLANC'S PROJECT FOR THE ENTERPRISE ARE TO INCREASE REVENUE 14 BY 1997 HALVE THE COST OF SERVICING AIR FRANCE DEBT OVER THE NEXT FIVE YEARS INCREASE PRODUCTIVITY 10 FOR EACH OF THE NEXT THREE YEARS CUT SPENDING ON MATERIALS 7 A YEAR FOR THE NEXT THREE YEARS AND CUT SALARIES ABOUT 10 A YEAR FOR THREE YEARS THE SALARY CUTS ARE LIKELY TO BE THE MOST CONTENTIOUS WITH THE UNIONS LAST WEEK THE COMPANY AND THE UNIONS AGREED TO A SCHEME THAT WILL LEAD TO 2100 JOB CUTS OR ABOUT 5 OF THE AIRLINE'S WORK FORCE OVER THE NEXT YEAR THROUGH EARLY RETIREMENT AND ATTRITION FURTHER CUTS ARE WIDELY SEEN AS NECESSARY BUT AIR FRANCE WORKERS HAVE REPEATEDLY REJECTED ANY FORCED LAYOFFS IN OCTOBER A WEEKLONG STRIKE BY THE AIRLINE'S WORKERS FORCED THE GOVERNMENT TO ABANDON PLANNED CUTS OF ROUGHLY 4000 JOBS AND LED TO THE RESIGNATION OF FORMER COMPANY PRESIDENT BERNARD ATTALI 9312140122 931214 JENNIFER CONVERTIBLES' SALES RISE PARAMUS NJ JENNIFER CONVERTIBLES INC A SOFABED RETAILER SAID ITS NOVEMBER SALES ROSE 69 TO 99 MILLION FROM 59 MILLION A YEAR EARLIER THE COMPANY ALSO REPORTED THAT SALES AT STORES OPEN MORE THAN ONE YEAR A KEY MEASURE OF A RETAILER'S STRENGTH GREW 25 TO 74 MILLION IN NOVEMBER FROM 59 MILLION A YEAR EARLIER FOR NOVEMBER SAMESTORE SALES AT 34 COMPANYOWNED STORES GREW 27 TO 42 MILLION FROM 33 MILLION ROYALTY INCOME NEARLY DOUBLED TO 251000 FROM 129000 JENNIFER CONVERTIBLES HAS 43 COMPANYOWNED STORES AND 99 LICENSED STORES 9312140121 931214 WHO'S NEWS VIRGINIA RETIREMENT SYSTEM VIRGINIA RETIREMENT SYSTEM RICHMOND VA O KEMP DOZIER WAS NAMED CHIEF INVESTMENT OFFICER OF THIS STATE PENSION FUND FOR PUBLIC EMPLOYEES EFFECTIVE JAN 1 THE POSITION HAS BEEN VACANT FOR THREE YEARS MR DOZIER 64 YEARS OLD RETIRES AS VICE PRESIDENT OF UNIVERSAL CORP A TOBACCO AND COMMODITY HOLDING COMPANY EFFECTIVE DEC 31 THE FUND HAS A 16 BILLION PORTFOLIO 9312140120 931214 BUSINESS BRIEF FANNIE MAE TO LEAVE UNCHANGED ITS LIMITS ON LOAN PURCHASES WASHINGTON THE FEDERAL NATIONAL MORTGAGE ASSOCIATION SAID IT WILL LEAVE ITS MORTGAGE LOANPURCHASE LIMITS UNCHANGED FOR 1994 ENDING A TWOWEEK REVIEW IN WHICH IT SAID IT RECEIVED A VERY STRONG MESSAGE FROM MORTGAGE LENDERS AND OTHERS NOT TO LOWER ITS LIMITS FANNIE MAE FOLLOWED THE FEDERAL HOME LOAN MORTGAGE CORP IN DECIDING NOT TO DROP ITS LOAN LIMITS NEXT YEAR TO CONFORM WITH A NEARLY 3 DECLINE IN A KEY HOUSINGPRICE INDEX HOUSING SECRETARY HENRY CISNEROS IN A DEC 2 STATEMENT URGED FANNIE MAE AND FREDDIE MAC TO FOLLOW THE FEDERAL HOUSING FINANCE BOARD'S INDEX DOWN AS THEY HAD FOLLOWED IT UP OVER THE YEARS HE URGED THEM TO LOWER THEIR LOANPURCHASE LIMITS IN ORDER TO BETTER SERVE THE NEEDS OF LOW AND MODERATEINCOME HOMEBUYERS BUT WHAT APPEARED TO BE A BURGEONING SQUABBLE BETWEEN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND THE TWO MORTGAGEFINANCE GIANTS WAS LAID TO REST FRIDAY WHEN MR CISNEROS ACKNOWLEDGED THAT HUD HAS NO AUTHORITY OVER THEIR LOAN LIMITS FOR THE COMING YEAR THE TWO COMPANIES ARE RETAINING THEIR CURRENT 203150 LIMIT ON THEIR PURCHASES OF MORTGAGE LOANS FOR SINGLEFAMILY HOUSING AND ARE LEAVING THEIR CURRENT LIMITS FOR MULTIUNIT LOANS UNCHANGED AS WELL FANNIE MAE AND FREDDIE MAC ARE CONGRESSIONALLY CHARTERED SHAREHOLDEROWNER FIRMS CHARGED WITH AIDING HOUSING THEY BUY MORTGAGES AND PACKAGE THEM INTO SECURITIES 9312140119 931214 WARNERLAMBERT JOINS GLAXO IN PACT TO SELL NONPRESCRIPTION DRUGS MORRIS PLAINS NJ WARNERLAMBERT CO ENTERED A JOINT VENTURE WITH GLAXO HOLDINGS PLC TO DEVELOP AND SELL NONPRESCRIPTION VERSIONS OF GLAXO PRESCRIPTION DRUGS INCLUDING THE ZANTAC ULCER TREATMENT AS REPORTED THE COMPANIES SIGNED A LETTER OF INTENT FOR THE VENTURE IN JULY ZANTAC WITH PRESCRIPTION SALES OF 32 BILLION LAST YEAR IS EXPECTED TO BE A VALUABLE ADDITION TO WARNERLAMBERT'S PRODUCT LINE WARNERLAMBERT SAID THE VENTURE WILL CONCENTRATE INITIALLY ON DEVELOPING ZANTAC FOR SALE AS AN OVERTHECOUNTER PRODUCT IN THE US AND WILL BE EXTENDED TO OTHER MAJOR MARKETS OUTSIDE THE US THE COMPANY SAID CLINICAL STUDIES ARE EVALUATING ZANTAC'S PERFORMANCE AT DOSES LOWER THAN PRESCRIPTION LEVELS FOR THE PREVENTION AND TREATMENT OF CONDITIONS SUCH AS EPISODIC HEARTBURN THE COMPANY SAID THE AGREEMENTS INCLUDE US RIGHTS TO THE ZANTAC TRADEMARK FOR APPROVED NONPRESCRIPTION CLAIMS AND DOSAGE FORMS AS WELL AS THE MARKETING OF OTHER PRESCRIPTION DRUGS SWITCHING TO NONPRESCRIPTION STATUS WORLDWIDE WARNERLAMBERT AND GLAXO WILL SHARE DEVELOPMENT COSTS AND PROFIT EQUALLY WITH GLAXO RECEIVING A ROYALTY ON ALL NONPRESCRIPTION SALES BY THE VENTURE WARNERLAMBERT SAID A MANAGEMENT COMMITTEE OF REPRESENTATIVES FROM EACH COMPANY WILL DIRECT THE VENTURE WITH WARNERLAMBERT RESPONSIBLE FOR DAYTODAY OPERATIONS WARNERLAMBERT SAID ITS CONSUMER HEALTHCARE PRODUCTS SALES AND MARKETING ORGANIZATION WILL SELL THE VENTURE'S OVERTHECOUNTER PRODUCTS 9312140118 931214 SHAWMUT SETTLES CHARGES OF BIAS IN ITS LENDING COMPANY AGREES TO SET UP A 960000 SPECIAL FUND FOR BLACKS AND HISPANICS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SHAWMUT MORTGAGE CORP SETTLED LENDINGDISCRIMINATION CHARGES WITH THE JUSTICE DEPARTMENT WHICH HAILED THE AGREEMENT AS AN EXAMPLE OF HOW LENDERS CAN SUCCESSFULLY RESOLVE BIAS CASES THE COMPANY A UNIT OF SHAWMUT NATIONAL CORP AGREED TO ESTABLISH A 960000 FUND TO COMPENSATE BLACKS AND HISPANICS WHO WERE UNFAIRLY DENIED MORTGAGES SHAWMUT MUST ALSO CONTINUE TAKING CORRECTIVE STEPS TOWARD IMPROVING ITS RECORD OF LENDING TO MINORITIES IN A NEWS CONFERENCE TO ANNOUNCE THE SETTLEMENT ATTORNEY GENERAL JANET RENO MADE CLEAR THAT THE MILD PENALTY RECOGNIZES THAT SHAWMUT HAS MADE CONSIDERABLE PROGRESS IN SEEKING OUT POTENTIAL MINORITY BORROWERS AND ADJUSTING ITS LENDING PROCEDURES TO HELP MORE APPLICANTS QUALIFY FOR LOANS SHAWMUT TOOK THESE ACTIONS AFTER 1990 DATA SHOWED THAT BLACK AND HISPANIC MORTGAGE APPLICANTS WERE TWICE AS LIKELY TO BE TURNED DOWN AS WHITES WE DECIDED THAT COMPENSATORY RATHER THAN PUNITIVE DAMAGES WERE THE APPROPRIATE REMEDY BECAUSE SHAWMUT LAUNCHED A SELFEVALUATION OF ITS LENDING PRACTICES AND TOOK CORRECTIVE ACTION BEFORE THE JUSTICE DEPARTMENT BEGAN ITS INVESTIGATION A YEAR AGO MS RENO SAID THE SETTLEMENT OPENS A NEW CHAPTER IN THE GOVERNMENT'S WIDENING CAMPAIGN AGAINST LENDING BIAS ATTORNEY GENERAL RENO STRESSED THAT EVEN IF THE GOVERNMENT DISCOVERS DISCRIMINATORY PRACTICES LENDERS THAT HAVE ACTED QUICKLY AND EFFECTIVELY TO CORRECT THEIR PROBLEMS CAN ESCAPE SEVERE PENALTIES I AM HOPEFUL THAT THE INDUSTRY WILL LEARN FROM SHAWMUT'S EXPERIENCE MS RENO SAID DO NOT WAIT FOR THE JUSTICE DEPARTMENT TO COME KNOCKING IMPLEMENT THE CORRECTIVE ACTION ON YOUR OWN BUT SHE WARNED THAT CONTINUED DISCRIMINATION WOULD BE HANDLED VIGOROUSLY SHE DROVE HOME THIS MESSAGE IN A MEETING WITH BANKINGINDUSTRY REPRESENTATIVES BEFORE YESTERDAY'S NEWS CONFERENCE THE SETTLEMENT CLEARS THE WAY FOR SHAWMUT TO CONTINUE ITS EXPANSION CAMPAIGN LAST MONTH THE FEDERAL RESERVE BOARD SHOCKED THE BANKING WORLD BY DENYING SHAWMUT'S APPLICATION TO ACQUIRE NEW DARTMOUTH BANK IN MANCHESTER NH BECAUSE OF QUESTIONS ABOUT ITS MINORITYLENDING RECORD JOEL ALVORD SHAWMUT'S CHAIRMAN SAID THE HARTFORD CONN COMPANY WOULD AGAIN SEEK FED APPROVAL IN ADDITION HE SAID THE BANK WOULD MOVE FORWARD WITH ITS PLANS TO ACQUIRE TWO OTHER BANKS FED GOVERNOR LAWRENCE LINDSEY THE BOARD'S MOST AGGRESSIVE MEMBER ON POLICING LENDING DISCRIMINATION HINTED THAT SHAWMUT WOULD RECEIVE FAVORABLE TREATMENT IF IT RESOLVES EARLIER OBJECTIONS I'VE ALWAYS THOUGHT THAT SHAWMUT WASN'T DAMNED FOR ALL ETERNITY HE SAID IF THEY REAPPLY THE WHEEL DOESN'T HAVE TO BE REINVENTED ANALYSTS CALLED THE SETTLEMENT A CRITICAL STEP FOR SHAWMUT WHICH HAS BEEN SEEKING TO GROW BY ACQUISITION IN A SLUGGISH LOAN MARKET IN NEW ENGLAND THIS LETS THEM REAPPLY TO ACQUIRE NEW DARTMOUTH BANK AND MAKES SHAWMUT'S OTHER TWO PENDING ACQUISITIONS MUCH MORE LIKELY TO GO THROUGH SAID GERARD CASSIDY AN ANALYST WITH HANCOCK INSTITUTIONAL EQUITY SERVICES OF PORTLAND MAINE IT FREES THEM TO DO WHAT THEY SHOULD BE DOING WHICH IS GROWING THE BANK THROUGH ACQUISITION MR CASSIDY ALSO SAID THE SETTLEMENT IMPOSES VIRTUALLY NO ADDED COST ON SHAWMUT AND THAT IT WOULDN'T AFFECT EARNINGS SHARES OF THE TWO OTHER BANKS WHOSE ACQUISITION BY SHAWMUT IS AWAITING APPROVAL ROSE YESTERDAY IN ACTIVE TRADING PEOPLES BANCORP OF WORCESTER MASS JUMPED 175 TO 48 WHILE GATEWAY FINANCIAL CORP OF CONNECTICUT CLIMBED 375 CENTS TO CLOSE AT 11 SHAWMUT SHARES CLOSED AT 21625 UP 1 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NEW DARTMOUTH BANK IS CLOSELY HELD AND ITS STOCK DOESN'T TRADE THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION WHICH POLICES CONSUMER LENDING CHARGED THAT BETWEEN JANUARY 1990 AND OCTOBER 1992 SHAWMUT DISCRIMINATED AGAINST MINORITIES BY HOLDING THEM TO HIGHER STANDARDS THAN THEY APPLIED TO WHITE APPLICANTS SHAWMUT WAS ALSO ACCUSED OF NOT GIVING MINORITIES THE SAME ASSISTANCE THEY GAVE WHITES IN OVERCOMING BORROWING OBSTACLES BUT ACCORDING TO THE CONSENT DEGREE ACCEPTED BY THE FEDERAL DISTRICT COURT IN HARTFORD SINCE LATE 1991 SHAWMUT HAS IMPLEMENTED A COMPREHENSIVE FAIR LENDING COMPLIANCE PROGRAM TO IMPROVE ITS OUTREACH TO POTENTIAL BLACK AND HISPANIC BORROWERS THE CONSENT ORDER AND A NEWS RELEASE ISSUED BY THE JUSTICE DEPARTMENT DETAILED SOME OF SHAWMUT'S CORRECTIVE STEPS BETTER TRAINING IN FAIR LENDING PRACTICES STEPPED UP MARKETING IN MINORITY AREAS A NEW BRANCH IN A PREDOMINANTLY BLACK AREA OF BOSTON AND REVIEWS OF REJECTED MINORITY APPLICATIONS AT TIMES YESTERDAY'S NEWS CONFERENCE SEEMED LIKE A LOVE FEST MS RENO PRAISED THE BANK'S REMEDIAL ACTIONS AND SHAWMUT'S MR ALVORD THANKED MS RENO AND FTC CHAIRMAN JANET STEIGER FOR THIS OPPORTUNITY TO BE HERE WITH YOU TODAY THE JUSTICE DEPARTMENT IS INVESTIGATING AT LEAST THREE OTHER INSTITUTIONS FOR POSSIBLE LENDING BIAS ONE IS BARNETT BANKS INC OF FLORIDA THE LESSON FOR OTHER BANKS UNDER INVESTIGATION IS THAT YOU MUST HAVE AN EFFECTIVE FAIR LENDING COMPLIANCE PROGRAM SAID ROBERT BENNETT THE LITIGATION PARTNER IN SKADDEN ARPS SLATE MEAGHER & FLOM THE FIRM THAT REPRESENTED SHAWMUT A SHAWMUTJUSTICE DEPARTMENT TEAM WILL DISTRIBUTE THE 960000 AMONG MINORITY APPLICANTS WHO WERE UNFAIRLY TURNED DOWN FOR MORTGAGES COMPENSATION WILL RANGE FROM 10000 TO 15000 PER APPLICANT A SHAWMUT OFFICIAL SAID THE BANK ESTIMATES THAT BETWEEN 75 AND 150 PEOPLE COULD QUALIFY FOR COMPENSATION THE REMEDIES AGAINST SHAWMUT WERE FAR LESS ONEROUS THAN THOSE THE JUSTICE DEPARTMENT WON IN ITS FIRST CASE OF MORTGAGE DISCRIMINATION AGAINST DECATUR FEDERAL SAVINGS & LOAN OF DECATUR GA LAST YEAR JOHN R WILKE IN BOSTON CONTRIBUTED TO THIS ARTICLE 9312140117 931214 MUTUAL FUNDS JAPANESESTOCK MUTUAL FUNDS HAD BIG GAINSOR DID THEY BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE THE COLLAPSE OF THE JAPANESE STOCK MARKET DURING THE PAST THREE MONTHS MUTUAL FUNDS INVESTING IN JAPANESE STOCKS RACKED UP TOTAL RETURNS OR PRICE GAINS PLUS DIVIDENDS OF 2331 THIS YEAR LOOKS IMPRESSIVE RIGHT BUT AS EINSTEIN FOUND EVERYTHING IS RELATIVE WHETHER THE FUNDS ACTUALLY MANAGED TO BEAT THE JAPANESE MARKET DEPENDS ON THE YARDSTICK USED IN MEASURING THEM FOR INSTANCE WITH THE ROUT IN JAPANESE STOCKS SINCE MIDSEPTEMBER THE NIKKEI 225 INDEX THE MOST WIDELY FOLLOWED BENCHMARK OF JAPANESE STOCKS IS ABOUT BACK TO WHERE IT BEGAN THE YEAR AGAINST THAT BENCHMARK JAPANESESTOCK FUNDS LOOK LIKE CHAMPIONS BUT AGAINST THREE OTHER WIDELY USED INDEXES OF JAPANESE STOCKS THE FUNDS LOOK LIKE LAGGARDS EVEN THEIR GAINS AGAINST THE NIKKEI 225 DIDN'T OCCUR BECAUSE THE FUNDS DID A GREAT JOB STEERING CLEAR OF THE STOCKMARKET ROUT THE FUNDS FELL 1356 ON AVERAGE DURING THE THREE MONTHS ENDED DEC 9 ACCORDING TO LIPPER ANALYTICAL SERVICES INC WHERE THE FUNDS LUCKED OUT AGAINST THE NIKKEI 225 WAS ON THE CURRENCY FRONT UNLIKE THE OTHER INDEXES THE PERFORMANCE OF THE NIKKEI 225 ISN'T ADJUSTED FOR CURRENCY SWINGS THIS YEAR THE YEN HAS BEEN QUITE STRONG SAYS JOHN HICKLING MANAGER OF FIDELITY JAPAN FUND AND THAT MADE JAPANESE ASSETS MORE VALUABLE TO DOLLARBASED INVESTORS ALL BY ITSELF THE YEN HAS ADDED ABOUT 15 PERCENTAGE POINTS TO JAPANESESTOCK FUNDS' RETURNS THIS YEAR RELATIVE TO THE NIKKEI OF COURSE CURRENCY CHANGES CAN HURT AS WELL AS HELP INVESTORS CURRENCY MOVES ARE NOTORIOUS FOR BEING SUDDEN SHARP AND UNPREDICTABLE BUT JAPANESE STOCKFUND MANAGERS LIKE TO THINK THAT THEY'RE ALSO ADDING VALUE WITH THEIR ASTUTE INVESTMENTS EVEN AFTER ADJUSTING FOR CURRENCY THEY SAY THEY'VE BEATEN THE NIKKEI 225 STOCK SELECTION HAS HELPED CUSHION SCUDDER STEVENS & CLARK'S JAPAN FUND AGAINST THE JAPANESE MARKET'S DECLINE SAYS ELIZABETH ALLAN THE FUND'S MANAGER IT MATTERS WHAT'S IN YOUR PORTFOLIO FIDELITY JAPAN FUND'S OUTPERFORMANCE OF THE NIKKEI 225 INDEX IS A CLASSIC CASE AS TO ACTIVE RATHER THAN INDEXED FUNDS BOASTS FIDELITY'S MR HICKLING ACTIVE FUND MANAGERS TRY TO PICK STOCKS THAT WILL BEAT STOCKMARKET INDEXES WHEREAS INDEX FUNDS MERELY TRY TO MATCH THE PERFORMANCE OF AN INDEX THE PROBLEM WITH ALL THIS CHESTTHUMPING IS THAT THE NIKKEI 225 WHILE WIDELY FOLLOWED DOESN'T REALLY REFLECT THE BEHAVIOR OF THE BROAD JAPANESE MARKET IN FACT THAT INDEX HAS PERFORMED WORSE THAN MOST ALTERNATIVE JAPANESE INDEXES THIS YEAR MATCH THE PERFORMANCE OF JAPANESESTOCK FUNDS AGAINST THOSE OTHER INDEXES AND SUDDENLY MOST OF THE FUNDS HAVEN'T BEATEN THE MARKET AT ALL THE NIKKEI 225 IS A STRANGE INDEX ADMITS MR HICKLING ECHOING A VIEW HELD BY MANY FUND MANAGERS THAT'S BECAUSE THE NIKKEI 225 IS A PRICEWEIGHTED INDEX MEANING THAT SMALLER STOCKS CAN CARRY EXCESS CLOUT IN DRIVING THE INDEX'S PRICE THE DOW JONES INDUSTRIAL AVERAGE CALCULATED BY DOW JONES & CO PUBLISHER OF THIS NEWSPAPER IS LIKEWISE PRICEWEIGHTED BECAUSE A CHANGE IN THE PRICE OF A SMALL HIGHPRICED STOCK WILL HAVE MANY TIMES MORE IMPACT ON THE INDEX'S PERFORMANCE THAN A HUGE BUT LOWPRICED STOCK TRADERS CAN AND DO TAKE ADVANTAGE OF THAT DISCREPANCY TO MANIPULATE THE NIKKEI 225 INDEX THERE ARE ILLIQUID HIGHPRICED STOCKS THAT ARE EASY TO MOVE IN THE NIKKEI 225 SAYS MICHAEL STEINBERG A MANAGING DIRECTOR AT NOMURA SECURITIES INTERNATIONAL IN NEW YORK BY MANIPULATING THOSE SHARE PRICES TRADERS CAN MOVE THE INDEX TO CONFRONT THOSE SHORTCOMINGS THE TOKYO STOCK EXCHANGE HAS BROUGHT OUT A NEW IMPROVED INDEX THE NIKKEI 300 WHICH IT HOPES WILL ECLIPSE THE OLDER NIKKEI 225 THE NEW INDEX IS CAPITALIZATIONWEIGHTED WHICH MEANS A COMPANY'S INFLUENCE ON THE INDEX DEPENDS ON ITS CAPITALIZATION OR THE VALUE OF ITS OUTSTANDING STOCK INDEX PURISTS PREFER CAPWEIGHTED INDEXES AND THEIR MIGRATION TO THE NIKKEI 300 HAS TORPEDOED THE NIKKEI 225 MANY SMALL JAPANESE STOCKS WERE WIDELY OWNED BY INSTITUTIONAL INVESTORS ONLY BECAUSE THEY WERE IN THE NIKKEI 225 INDEX NOT ON THEIR OWN MERIT SAYS MS ALLAN AT SCUDDER AS THE NIKKEI 225 IS PHASED OUT A LOT OF THE MOTIVATION FOR HOLDING THEM IS GONE AND AS INVESTORS HAVE SOLD THESE SMALL BUT INFLUENTIAL STOCKS THAT'S HURT THE PERFORMANCE OF THE NIKKEI 225 INDEX BY CONTRAST THE MORGAN STANLEY CAPITAL INTERNATIONAL INDEX OF JAPANESE STOCKS WHICH INCLUDES PRICE CHANGES BUT NOT DIVIDENDS IS UP 2790 SO FAR THIS YEAR ONLY ONE OF THE STOCK FUNDS INVESTING IN JAPAN HAS BEATEN THAT HURDLE EVEN THOUGH THEY TROUNCED THE NIKKEI 225 THE MORGAN STANLEY INDEX AS QUOTED HERE DOES INCLUDE THE FAVORABLE PERFORMANCE OF THE YEN AGAINST THE DOLLAR GT JAPAN GROWTH HAD A 3264 RETURN BUT FIVE OTHER FUNDS TRAILED THE MORGAN STANLEY INDEX RETURN OTHER BROAD JAPANESE INDEXES ALSO OUTPACED THE NIKKEI 225 AS WELL AS THE AVERAGE JAPANESE STOCK FUND THE TOKYO STOCK PRICE INDEX OR TOPIX GAINED 258 WHILE THE DOW JONES WORLD STOCK INDEX FOR JAPAN WAS UP 278 ONE REASON THE JAPANESESTOCK FUNDS DIDN'T DO AS WELL AS THESE BROAD JAPANESE INDEXES IS THAT THEY MISSED OUT ON THE BOOM IN JAPANESE BANKS AND OTHER FINANCIAL STOCKS THIS YEAR US FUND MANAGERS VIEWING THE BANKS' HEAVY EXPOSURE TO PLUMMETING REAL ESTATE WERE LIGHT ON THOSE HOLDINGS ON THE OTHER HAND BANK STOCKS HELPED MAKE THE MORGAN STANLEY INDEX ESPECIALLY VOLATILE IN THE LAST THREE MONTHS AS THOSE STOCKS LED THE MARKET DOWN MEANWHILE FUNDS' CASH HOLDINGS BUOYED THEIR RETURNS AS THE MARKET FELL EVEN THOUGH CASH HAD ALSO WEIGHED DOWN THEIR PERFORMANCE EARLIER IN THE YEAR SO WHAT'S THE OUTLOOK FOR JAPANESE STOCKS THE FUND MANAGERS ARE SANGUINE WE PROBABLY HAVE SEEN THE BOTTOM IN JAPANESE STOCKS SAYS MS ALLAN WITH THE CAVEAT THAT MORE TURBULENCE MAY LIE AHEAD JAPAN IS FOR LONGTERM INVESTORS SHE STRESSES IF SOMEBODY'S GOING TO FAINT AT THESE LITTLE AIR POCKETS WE'VE BEEN HAVING IT'S NOT A GOOD IDEA TO BE IN JAPANESE STOCKS 9312140116 931214 LEHMAN FORCES DEPARTURES OF 30 BROKERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEHMAN BROTHERS INC DISMISSED 7 OF ITS BROKERAGE FORCE AHEAD OF A POSSIBLE INITIAL PUBLIC OFFERING NEXT YEAR WALL STREET EXECUTIVES SAID THE INVESTMENT BANK FORCED OUT ABOUT 30 OF ITS 430MEMBER BROKERAGE STAFF THEY SAID THE FORCED DEPARTURES STEMMED FROM A REVIEW OF LEHMAN'S BROKERAGE OPERATION FOLLOWING THE AUGUST SALE BY PARENT AMERICAN EXPRESS CO OF ITS SHEARSON OPERATIONS TO PRIMERICA CORP AFTER THAT SALE LEHMAN RETAINED A STABLE OF BROKERS WHO CATER TO WEALTHY INDIVIDUALS SOME OF THE DEPARTURES WERE RELATED TO LOW SALES BY THE BROKERS OTHERS STEMMED FROM REGULATORYCOMPLIANCE CONCERNS THE EXECUTIVES SAID LEHMAN FOR ITS PART SAID THE DISMISSALS WERE UNRELATED TO RECENT SECURITIES AND EXCHANGE COMMISSION PRESSURES ON WALL STREET BROKERAGE FIRMS TO SHED BROKERS WHO CHEAT CUSTOMERS WE ASKED A NUMBER OF BROKERS TO LEAVE THE FIRM FOR A VARIETY OF REASONS A LEHMAN SPOKESWOMAN SAID AMONG THE REASONS SHE SAID WERE A MIXTURE OF BUSINESS STYLE PERFORMANCE AND PRODUCTIVITY SHE ADDED WE WANT TO UPGRADE THE DIVISION SEVERAL OF THE BROKERS WHO WERE FORCED OUT WORKED IN LEHMAN'S BOSTON BRANCH OFFICE THE EXECUTIVES SAID AS REPORTED THAT BRANCH'S ACTIVITIES ARE BEING INVESTIGATED BY THE SEC FOR POSSIBLE BROKER WRONGDOING AND CUSTOMER ABUSES PEOPLE FAMILIAR WITH THE SEC CASE SAY THE MOVE BY LEHMAN COMES AMID A REGULATORY CRACKDOWN ON ROGUE BROKERS PART OF THE SEC'S MOVE WILL COVER COLDCALLING BY BROKERS WHO SOLICIT BUSINESS FROM INVESTORS WHO AREN'T ALREADY CLIENTS OF THEIR FIRM LEHMAN BROTHERS HAS AMONG THE MOST AGGRESSIVE COLDCALLERS ON WALL STREET BROKERAGE EXECUTIVES SAY LEHMAN EXECUTIVES DECLINED TO DISCUSS THE POSSIBILITY OF AN INITIAL PUBLIC OFFERING BUT THE FIRM HAS TAKEN OTHER STEPS TO PREPARE FOR A PUBLIC SALE OF THE FIRM'S STOCK NEXT YEAR THE EXPECTED SALE WOULD RETURN LEHMAN TO THE FREESTANDING INVESTMENT BANK IT WAS FOR 135 YEARS BEFORE SHEARSON BOUGHT IT IN 1984 LEHMAN RECENTLY NAMED PRESIDENT RICHARD S FULD JR TO THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER FILLING A MAJOR MANAGEMENT VACANCY AND UNDERSCORING AMERICAN EXPRESS'S CONFIDENCE IN MR FULD A 23YEAR LEHMAN VETERAN AND AN INTERNAL MEMO DISTRIBUTED TO EMPLOYEES IN SEPTEMBER APPEARED TO MAKE AN INITIAL PUBLIC OFFERING A NEAR CERTAINTY OFFERING LEHMAN'S SENIOR MANAGEMENT SHARES IN A 60 MILLION PRIVATE PLACEMENT OF PHANTOM LEHMAN STOCK IN LIEU OF PART OF THEIR 1993 BONUS LEHMAN VALUES THE PHANTOM SHARES AT 10 EACH AND WOULD CONVERT THEM 1FOR1 INTO REAL SHARES IF THE COMPANY GOES PUBLIC THE LEHMAN DISMISSALS FIRST REPORTED IN INVESTMENT DEALERS' DIGEST A TRADE PUBLICATION COME AS THE PROBLEM OF ROGUE BROKERS AROUSES INTEREST ON CAPITOL HILL THERE IS TALK MORE THAN TALK OF A LEGISLATIVE PROPOSAL TO ADOPT A THREE STRIKES AND YOU'RE OUT' POLICY FOR REPEAT OFFENDERS SEC COMMISSIONER J CARTER BEESE TOLD A GROUP OF SECURITIES EXECUTIVES THIS MONTH WHILE NONE OF US CAN QUARREL WITH THE INTENT OF SUCH LEGISLATION THE INDUSTRY MUST EITHER TAKE ACTION ON ITS OWN OR FACE THE PROSPECT OF FEDERAL SENTENCING GUIDELINES FOR SALES PRACTICE ABUSES MEANWHILE SOME SECURITIES EXECUTIVES BELIEVE THE PROBLEM OF BAD BROKERS IS OVERBLOWN IF WE WERE TO BAN EVERY BROKER WITH FIVE OR MORE VIOLATIONS IT WOULD CAUSE VERY FEW OF US ANY PROBLEMS BECAUSE THERE JUST AREN'T VERY MANY OF THEM SAYS JOSEPH J PLUMERI II PRESIDENT OF SMITH BARNEY SHEARSON INC OF THE 91000 BROKERS REGISTERED WITH THE NEW YORK STOCK EXCHANGE FEWER THAN 2 HAD FIVE OR MORE CUSTOMER COMPLAINTS MR PLUMERI SAID IN A RECENT SPEECH TO SECURITIES EXECUTIVES IF THOSE COMPLAINTS ARE LEGITIMATE LET'S GET RID OF THE BROKERS SAID MR PLUMERI WHO FORMERLY RAN SHEARSON LEHMAN'S BROKERAGE OPERATIONS EVEN ONE BAD APPLE IS TOO MANY 9312140114 931214 INTERNATIONAL YELTSIN'S FOES OUTNUMBER ALLIES IN DUMA BUT VOTING DOESN'T DOOM CRUSADE OF REFORMERS AT LEAST FOR A WHILE BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW ALTHOUGH THE OFFICIAL TALLY FROM RUSSIA'S PARLIAMENTARY ELECTIONS MAY TAKE ANOTHER WEEK IT'S ALREADY CLEAR THAT PRESIDENT BORIS YELTSIN'S IRRECONCILABLE OPPONENTS ARE IN A POSITION TO FORM THE MOST POWERFUL BLOC IN THE STATE DUMA RUSSIA'S NEW LAWMAKING LOWER HOUSE WE'RE NOT EXACTLY EUPHORIC DEADPANNED YEGOR GAIDAR RUSSIA'S ECONOMIC CZAR AND LEADER OF RUSSIA'S CHOICE A PROREFORM PARTY THAT FARED POORLY ON SUNDAY BUT MR YELTSIN MAY STILL HAVE SOME TRICKS UP HIS SLEEVE THE CONSTITUTION THAT VOTERS APPROVED SUNDAY SHOULD GIVE HIM SUFFICIENT POWER TO WITHSTAND THE THREAT FROM HIS FIERCEST PARLIAMENTARY OPPONENTS ALL AGREE HOWEVER THAT THIS LEGISLATURE IS SURE TO BE NO LESS OF A BATTLEGROUND THAN ITS PREDECESSOR WE MUST CREATE A SOLID BARRIER AGAINST COMMUNISTFASCIST FORCES IN THE DUMA SAID SERGEI KOVALEV OF RUSSIA'S CHOICE FIRING OFF THE FIRST ROUND THE THREAT OF FASCISM HAS RISEN TALL AND HIGH WHILE THE CONSTITUTION GIVES MR YELTSIN MUCHNEEDED POWERS THE VOTE SUNDAY SEEMED TO SIGNAL THE BEGINNING OF THE END OF THE YELTSIN ERA IT HAD BEEN SUPPOSED THAT MR YELTSIN DESPITE SLIPPING PRESTIGE COULD STILL WIN FRESH PRESIDENTIAL ELECTIONS A JOINT EXIT POLL BY RUSSIA'S CENTER FOR COMPARATIVE SOCIAL STUDIES AND THE RIANOVOSTI NEWS AGENCY INDICATED HOWEVER THAT ONLY 39 SAY THEY WOULD NOW VOTE FOR MR YELTSIN FOR PRESIDENT WHILE 52 WOULD VOTE FOR SOMEONE ELSE MR YELTSIN MAY NOT HAVE TO FACE THE ELECTORS ANY TIME SOON HOWEVER IT APPEARS THAT HE HAS DECIDED ONCE AND FOR ALL NOT TO HOLD AN EARLY PRESIDENTIAL ELECTION IN JUNE AS HE HAD EARLIER PROMISED HIS HANDPICKED HEAD OF THE CENTRAL ELECTORAL COMMISSION NIKOLAI RYABOV SAID YESTERDAY THAT APPROVAL OF THE CONSTITUTION AUTOMATICALLY RULES OUT AN EARLY PRESIDENTIAL VOTE SINCE AN ADDENDUM TO THE BASIC LAW CALLS FOR MR YELTSIN TO COMPLETE HIS TERM THAT WILL RELIEVE MANY OF MR YELTSIN'S SUPPORTERS WHO FEAR THAT THE ULTRANATIONALISTIC VLADIMIR ZHIRINOVSKY COULD WELL CHALLENGE AND DEFEAT THE PRESIDENT IF AN EARLY ELECTION WERE HELD MR YELTSIN'S TERM EXPIRES IN 1996 BY LAST NIGHT THE ELECTORAL COMMISSION HAD ISSUED PRELIMINARY ELECTION RESULTS FROM 37 OF RUSSIA'S 89 FARFLUNG PROVINCES THE PARTIAL RESULTS SHOWED AN EARLY OVERWHELMING ADVANTAGE FOR MR ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY WHICH CAPTURED MORE THAN 23 OF THE VOTE IN THOSE REGIONS THE PROREFORM RUSSIA'S CHOICE WON ABOUT 15 WHILE THE REVAMPED COMMUNIST PARTY PULLED IN NEARLY 11 OTHERS THAT APPARENTLY PASSED THE 5 THRESHOLD NEEDED TO GAIN SOME OF THE 225 PROPORTIONAL PARTYBASED SEATS IN THE 450SEAT DUMA INCLUDE THE CONSERVATIVE AGRARIAN PARTY THE INDEPENDENT WOMEN OF RUSSIA PARTY THE CENTRIST DEMOCRATIC PARTY OF RUSSIA AND TWO PROREFORM GROUPS SERGEI SHAKHRAI'S PARTY OF RUSSIAN UNITY AND ACCORD AND ECONOMIST GRIGORY YAVLINSKY'S PARTY THE RESULTS SUGGEST THAT MR YELTSIN'S MOST STRIDENT FOES IN THE STATE DUMA WILL BE ABLE TO FORM A POWERFUL OPPOSITION BLOC TOGETHER THE COMMUNISTS THE AGRARIANS AND MR ZHIRINOVSKY'S PARTY COULD CONTROL AS MUCH AS 40 OF THE DUMA SEATS PROREFORM PARTIES BY CONTRAST MAY HAVE ONLY ABOUT 30 THAT 30 SHARE HOWEVER MIGHT BE JUST ENOUGH TO ALLOW MR YELTSIN TO MOVE FORWARD WITH HIS AGENDA THE NEW CONSTITUTION WHICH TAKES EFFECT AS SOON AS THE RESULTS ARE FINAL SIGNIFICANTLY STRENGTHENS THE PRESIDENCY IN ADDITION TO RETAINING HIS ABILITY TO ISSUE DECREES MR YELTSIN CAN VETO LEGISLATION AS IN THE US IT WILL REQUIRE TWOTHIRDS MAJORITY OF BOTH PARLIAMENTARY CHAMBERS TO OVERRIDE THE PRESIDENT THAT MEANS THAT IF THE REFORMERS CAN PULL TOGETHER A SOLID BLOC OF JUST OVER ONETHIRD OF THE LEGISLATURE THEY CAN KEEP MR YELTSIN'S POLICIES ON TRACK THAT'S A BIG IF IN RUSSIAN POLITICS OF COURSE WHERE THERE IS LITTLE TRADITION OF SWING VOTES AND POLITICAL HORSETRADING BUT THE SOCALLED DEMOCRATS HAVE BEEN STUNG BY MR ZHIRINOVSKY'S STRONG SHOWING AND ARE CALLING FOR RECONCILIATION IN PARLIAMENT TO PREVENT THE OPPOSITION FROM CHIPPING AWAY AT REFORM RUSSIA'S FUTURE WILL DEPEND ON THE ABILITY OF DEMOCRATIC FACTIONS TO CAST ASIDE THEIR DIFFERENCES AND UNITE MR GAIDAR SAID IF THAT HAPPENS HE SAID THE NEW PARLIAMENT WILL HAVE A POWERFUL DEMOCRATIC WING CAPABLE OF PARALYZING ATTEMPTS BY THE RADICALS TO DRASTICALLY REVERSE RUSSIA'S MOVE TO DEMOCRACY AND A FREEMARKET SYSTEM PRESIDENT CLINTON TRIED TO PUT THE BEST FACE ON THE RESULTS CHEERING THE APPROVAL OF THE CONSTITUTION AND PROMISING THAT AMERICAN SUPPORT FOR RUSSIAN DEMOCRACY AND REFORM WOULD CONTINUE BUT THE STRONG SHOWING OF BOTH ULTRANATIONALISTS AND COMMUNISTS CLEARLY ISN'T WHAT THE ADMINISTRATION EXPECTED INDEED IF RUSSIA MOVES AWAY FROM REFORM THE ADMINISTRATION MAY FIND IT POLITICALLY DIFFICULT TO JUSTIFY CONTINUED HIGH LEVELS OF ECONOMIC AID WHILE RUSSIA'S DEMOCRATS BLAME INFIGHTING FOR THEIR POOR SHOWING IT SEEMS MR YELTSIN'S OPPONENTS PARTICULARLY MR ZHIRINOVSKY WOULD HAVE FARED JUST AS WELL IF PITTED AGAINST A SINGLE UNIFIED PROREFORM PARTY ONCE DERIDED AS A POLITICAL LIGHTWEIGHT MR ZHIRINOVSKY STRUCK A POPULIST CHORD AMONG RUSSIANS WHOSE LIVES HAVE BEEN BADLY SHAKEN BY SEVERAL YEARS OF PAINFUL ECONOMIC REFORM THE POPULATION WAS READY FOR A PROTEST VOTE MR ZHIRINOVSKY THROUGH SKILLFUL POPULISTIC CAMPAIGNING ATTRACTED MUCH OF IT MR ZHIRINOVSKY PROMISED VOTERS THAT HIS PARTY COULD REVIVE THE RUSSIAN ECONOMY VIRTUALLY OVERNIGHT AND WIPE OUT THE GROWING MENACE OF ORGANIZED CRIME ABOVE ALL HE CALLED FOR RUSSIA TO REGAIN ITS PAST GLORY BY BUILDING UP ITS MILITARY MIGHT AND EVENTUALLY REGAINING MUCH OF ITS LOST EMPIRE I'M NOT A FASCIST MR ZHIRINOVSKY 47 YEARS OLD TOLD JOURNALISTS YESTERDAY AS RESULTS OF HIS ELECTORAL SUCCESS BECAME KNOWN ON THE CONTRARY I'VE ALWAYS MADE EFFORTS IN THE STRUGGLE FOR HUMAN RIGHTS MEANWHILE THE PARLIAMENTARY SQUABBLES ARE BEGINNING MR ZHIRINOVSKY ALREADY IS STAKING A CLAIM TO BE SPEAKER OF THE DUMA AND HE IS CALLING FOR SEVERAL MINISTERS TO STEP DOWN INCLUDING PRIVATIZATION CZAR ANATOLI CHUBAIS FOREIGN MINISTER ANDREI KOZYREV AND MR GAIDAR MR ZHIRINOVSKY'S OPPONENTS ARE FIRING BACK COOPERATION WITH ZHIRINOVSKY IS IMPOSSIBLE MR CHUBAIS TOLD RUSSIA'S ITARTASS NEWS AGENCY NOTHING HE HAS PROMISED CAN BE FULFILLED MEANWHILE WINNERS OF A FEW OF THE DIRECTBALLOT DUMA SEATS WERE ANNOUNCED YESTERDAY SOME OF THOSE ELECTIONS PRODUCED SOME ODD RESULTS AT LEAST THREE NEWLY ELECTED LEGISLATORS FOR EXAMPLE HAVE LEGAL CHARGES PENDING AGAINST THEM TWO ARE ON TRIAL FOR THEIR ALLEGED ROLES IN THE ATTEMPTED COUP OF 1991 FORMER SOVIET PARLIAMENT CHAIRMAN ANATOLI LYUKANOV AND COLLECTIVE FARM CHIEF VASILY STARODUBTSEV THE THIRD IS ARTYOM TARASOV A MILLIONAIRE BUSINESSMAN ACCUSED OF CORRUPTION ALL NOW ENJOY IMMUNITY AS A RESULT OF THEIR VICTORIES OTHER PROMINENT WINNERS OF DUMA SEATS INCLUDE SERGEI BABURIN AN ULTRANATIONALIST WHO MANAGED TO WIN IN OMSK WHEN SEVERAL LOCAL DEMOCRATIC CANDIDATES SPLIT THE PROREFORM VOTE 9312140113 931214 WHO'S NEWS CONTINENTAL'S GENERAL TIRE SAYS 3 AIDES QUIT IN RESTRUCTURING STEP AKRON OHIO GENERAL TIRE INC ANNOUNCED THE RESIGNATIONS OF ITS CHIEF FINANCIAL OFFICER AND TWO OTHER SENIOR EXECUTIVES AS THE FINAL STEP OF ITS RESTRUCTURING THE TIRE MAKER ALSO TAPPED AN EXECUTIVE FROM ITS GERMAN PARENT COMPANY CONTINENTAL AG TO BE THE NEW HEAD OF ITS PASSENGER AND LIGHT TRUCK DIVISION BERND FRANGENBERG 53 YEARS OLD A CONTINENTAL VICE PRESIDENT WILL ASSUME THE ADDITIONAL POST OF EXECUTIVE VICE PRESIDENT IN CHARGE OF THE PASSENGER AND TRUCK DIVISION EFFECTIVE JAN 1 THE DIVISION IS GENERAL TIRE'S LARGEST BUSINESS MR FRANGENBERG SUCCEEDS EW BUD KISSEL WHO RESIGNED SUDDENLY IN AUGUST WITHOUT COMMENT THE THREE EXECUTIVES WHO RESIGNED ARE HORST K MEHLFELDT 53 CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT JOHN D KELLEY JR 61 VICE PRESIDENT FOR CORPORATE QUALITY AND INTERNATIONAL TECHNOLOGY AND JOHN HENRY DAVIS 48 VICE PRESIDENT AND GENERAL COUNSEL MR KELLEY'S AND MR DAVIS'S RESPONSIBILITIES WILL BE REDISTRIBUTED AMONG BUSINESS UNITS GENERAL TIRE SAID JOHN C CURRY GENERAL TIRE'S 49YEAROLD CONTROLLER AND VICE PRESIDENT WILL ASSUME MR MEHLFELDT'S RESPONSIBILITIES IN A STATEMENT GENERAL TIRE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ALAN L OCKENE SAID I REGRET TAKING THIS ACTION BECAUSE ALL THE PEOPLE INVOLVED ARE WELLQUALIFIED IN THEIR RESPECTIVE AREAS BUT WE HAVE RESTRUCTURED AND THIS IS THE FINAL STEP IN STREAMLINING OUR OPERATION 9312140112 931214 HEALTH GENE TESTING FOR CANCER TO BE WIDELY AVAILABLE RAISING THORNY QUESTIONS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL COMING SOON TO A PHYSICIAN NEAR YOU GENETIC TESTING FOR CANCER RISK THIS WEEK ONCOR INC A TINY BIOTECHNOLOGY COMPANY IN GAITHERSBURG MD LAUNCHED A GENETIC TESTING SERVICE THAT WILL ENABLE LOCAL DOCTORS AND HOSPITALS TO DO WHAT UNTIL NOW JUST A HANDFUL OF ACADEMIC RESEARCH CENTERS COULD DO IDENTIFY PEOPLE WHO HAVE INHERITED THE GENES FOR BREAST AND COLON CANCERS MEDICAL ETHICISTS AND POLICY MAKERS HAVE DREADED THE DAY GENETIC TESTING FOR CANCER PREDISPOSITION BROKE OUT OF THE UNIVERSITY LABORATORY AND INTO THE COMMERCIAL MARKET ALTHOUGH THE TESTS WILL HELP IDENTIFY WHICH PATIENTS NEED CLOSE MEDICAL MONITORING BECAUSE OF THEIR GENETIC PREDISPOSITIONS THERE ARE MANY UNANSWERED SOCIAL AND ETHICAL QUESTIONS THESE INCLUDE HOW TO COUNSEL PATIENTS HOW TO PREVENT DISCRIMINATION BY EMPLOYERS AND INSURANCE COMPANIES USING GENETIC TEST RESULTS WHETHER CHILDREN SHOULD BE TESTED AND WHETHER PRIMARYCARE PHYSICIANS ARE ADEQUATELY TRAINED TO INTERPRET GENETIC TEST RESULTS TO PATIENTS THE TECHNOLOGY ONCOR WILL USE IN ITS NEW PRODUCT CALLED HEREDITARY CANCER CONSULTING SERVICE HAS BEEN USED IN RESEARCH FOR SOME TIME BUT THE AVERAGE PERSON CAN'T GET IT SAYS JAMES D WATSON NOBELPRIZE WINNING CODISCOVERER OF DNA STRUCTURE AND A SCIENTIFIC ADVISER TO ONCOR YOU WANT THE SCIENTIFIC WORK WE'RE DOING TO REDUCE THE INCIDENCE OF CANCER WHICH MEANS GETTING THE TESTS OUT TO THE PUBLIC ONCOR'S SERVICE WHICH WILL BE SOLD THROUGH AN ONCOR SUBSIDIARY ONCORMED INC WILL USE TWO TECHNIQUES AN INTERVIEW WITH THE PATIENT ABOUT THE FAMILY'S CANCER HISTORY AND HIGHTECH DNA ANALYSIS TO DETERMINE IF AN INDIVIDUAL IN THAT FAMILY HAS INHERITED THE CANCERCAUSING GENE ONCOR PLANS TO SELL TO HOSPITALS AND PHYSICIANS INTERACTIVE COMPUTER SOFTWARE DESIGNED TO LEAD A PATIENT THROUGH A SERIES OF QUESTIONS ABOUT HIS OR HER FAMILY MEDICAL HISTORY THE SOFTWARE WAS LICENSED FROM THE NONPROFIT HEREDITARY CANCER INSTITUTE AT CREIGHTON UNIVERSITY SCHOOL OF MEDICINE IN OMAHA NEB THE SOFTWARE PROGRAM PRODUCES A PEDIGREE A FAMILY TREE THAT MAPS THE INCIDENCE OF CANCER AMONG THE PATIENT'S RELATIVES ONCOR'S STAFF ONCOLOGIST AND MEDICAL GENETICIST USE THE PEDIGREE TO ASSESS WHETHER AN INHERITED GENE MIGHT BE RESPONSIBLE FOR A FAMILY'S CANCER A WOMAN RECENTLY INTERVIEWED USING THE SOFTWARE FOR EXAMPLE REPORTED A CLEAR PATTERN OF INHERITED CANCER HER GRANDFATHER HAD THREE SISTERS WITH BREAST CANCER HER MOTHER AND FOUR AUNTS HAD BREAST OVARIAN OR UTERINE CANCER AND TWO COUSINS DEVELOPED BREAST CANCER WHILE IN THEIR 30S BUT IT WASN'T KNOWN WHETHER SHE HAD INHERITED THE GENE IF SHE HAD HER CHANCES FOR DEVELOPING BREAST CANCER WOULD BE 85 IF NOT IT WOULD BE ABOUT 11 THE SAME AS THE GENERAL POPULATION THE PHYSICIAN IN SUCH CASES MAY ADVISE THE PATIENT TO TAKE THE NEXT STEP DNA TESTING USING BLOOD SAMPLES FROM AT LEAST EIGHT FAMILY MEMBERS ONCOR WILL SEARCH FOR MARKERS ASSOCIATED WITH A DEFECTIVE GENE IMPLICATED IN ABOUT 10 OF BREAST AND SOME OVARIAN CANCERS ONE IN 200 OR ABOUT 600000 WOMEN IN THE US ARE THOUGHT TO HAVE THE DANGEROUS GENETIC MUTATION EARLY NEXT YEAR THE COMPANY PLANS TO ADD DNA TESTING FOR MARKERS ASSOCIATED WITH A GENE THOUGHT TO CAUSE 10 TO 15 OF COLON CANCERS AND CARRIED BY ONE IN 200 PEOPLE HOW WELL PHYSICIANS EXPLAIN THE IMPLICATIONS OF THEIR FINDINGS TO PATIENTS IS A SOURCE OF CONCERN INSIDE AND OUTSIDE THE MEDICAL COMMUNITY GENETIC TESTING WILL HAVE A TREMENDOUS IMPACT ON PEOPLE'S LIVES AND FAMILY DECISIONS SAYS BERNARD LEVIN CHAIRMAN OF THE GASTROINTESTINAL ONCOLOGY DEPARTMENT AT MD ANDERSON CANCER CENTER IN HOUSTON BUT HE SAYS THE MEDICAL COMMUNITY ISN'T PREPARED TO HANDLE THE COMPLEX INTERPRETATION AND COUNSELING ISSUES THAT WILL ARISE FOR EXAMPLE IF THE WOMAN WHO WAS RECENTLY INTERVIEWED IS FOUND TO CARRY THE GENE SHOULD SHE TAKE DRASTIC PREVENTIVE ACTIONS SUCH AS HAVING HER BREASTS AND OVARIES REMOVED SHOULD SHE HAVE HER TWO DAUGHTERS TESTED AND IF SO AT WHAT AGE HOW SHOULD SHE ANSWER QUESTIONS ABOUT HER HEALTH ON INSURANCE OR EMPLOYMENT APPLICATIONS PHYSICIANS WILL BE READY FOR THE TECHNOLOGY BECAUSE MOST PRIMARY CARE DOCTORS USE TECHNOLOGY SAYS WILLIAM JACOTT A FAMILY PHYSICIAN AND VICE CHAIR OF THE AMERICAN MEDICAL ASSOCIATION BOARD OF TRUSTEES WHETHER WE'RE READY TO DEAL WITH THE ETHICS OF GENETIC TESTING IS ANOTHER QUESTION MANY PHYSICIANS WILL RELY ON GENETIC COUNSELORS BUT THERE ARE ONLY ABOUT 1000 OF THEM IN THE US AND FEW OF THEM SPECIALIZE IN CANCER RISK STEPHEN TURNER ONCOR'S CHAIRMAN SAYS THE COMPANY WILL PROVIDE GENETIC COUNSELING BY TELEPHONE IF PHYSICIANS REQUEST IT BUT OTHER SOCIAL AND ETHICAL QUESTIONS SURROUNDING GENETIC TESTING SUCH AS CONFIDENTIALITY WILL BE LEFT TO THE PHYSICIAN AND PATIENT TO WORK OUT MUCH THE WAY AIDS TESTING IS NOW MR TURNER SAYS PHYSICIANS AND SCIENTISTS SAY THEY EXPECT GREAT DEMAND FOR GENETIC TESTING TONYCE WILLIAMS ONCOLOGY EDUCATION COORDINATOR AT THE HOAG CANCER CENTER IN NEWPORT BEACH CALIF HAS USED THE PATIENT INTERVIEW SOFTWARE FOR TWO YEARS AND SAYS ABOUT HALF OF THE 124 PATIENTS SHE'S INTERVIEWED HAVE ASKED ABOUT A BLOOD TEST THAT CAN OFFER MORE DEFINITIVE INFORMATION THE JOHNS HOPKINS ONCOLOGY CENTER IN BALTIMORE HAS RECEIVED NEARLY 1600 INQUIRIES ABOUT TESTING SINCE THE NEWS IN MAY THAT ITS RESEARCHERS HAD FOUND THE APPROXIMATE LOCATION OF A DEFECTIVE GENE CAUSING COLON CANCER DEMAND WILL BE LIMITED BY THE REQUIREMENT OF BLOOD SAMPLES FROM MANY FAMILY MEMBERS MR TURNER SAYS ONCOR EXPECTS TO EVALUATE THE PEDIGREES OF ABOUT 100000 PATIENTS IN THE FIRST YEAR BUT THE COMPANY EXPECTS ONLY ABOUT 5000 FAMILIES TO UNDERGO DNA TESTING MR TURNER SAYS ANOTHER LIMITING FACTOR THE COST CAN BE MORE THAN 1000 A FAMILY IF THE DNA TEST IS DONE INSURANCE COMPANIES DON'T COVER SUCH TESTING MR TURNER SAYS THE COMPANY EXPECTS ABOUT 100 HOSPITALS TO OFFER THE PRODUCT BY MID1994 MR TURNER SAYS MARKETING TO INDIVIDUAL PHYSICIANS WILL BEGIN LATER NEXT YEAR BY AND LARGE PEOPLE WANT TO KNOW WHETHER THEY ARE AT RISK SAYS ROBERT DILLMAN THE HOAG CENTER'S MEDICAL DIRECTOR PATIENTS WHO HAVE FOUND OUT THEY ARE AT HIGH RISK THROUGH THE INTERVIEWS HAVE BEEN MUCH MORE VIGILANT ABOUT GETTING ADDITIONAL TESTS HE ADDS WITH THAT SORT OF AWARENESS IT BECOMES EASIER TO INFLUENCE PEOPLE'S LIFESTYLE CHANGES 9312140111 931214 ANTHEM'S 4THQUARTER FORECAST SAN JOSE CALIF ANTHEM ELECTRONICS INC SAID THAT A SLOWDOWN IN THE SALES OF SEMICONDUCTORS AND DECREASING MARGINS WOULD PUSH FOURTHQUARTER NET INCOME BELOW THE THIRDQUARTER LEVEL THE ELECTRONICS DISTRIBUTOR REPORTED THIRDQUARTER NET INCOME OF 57 MILLION OR 46 CENTS A SHARE ON REVENUE OF 1752 MILLION IN THE FOURTHQUARTER LAST YEAR THE COMPANY POSTED NET INCOME OF 79 MILLION OR 64 CENTS A SHARE ON REVENUE OF 150 MILLION THE COMPANY ALSO SAID EARNINGS WERE AFFECTED BY EXPENSES FROM ITS EXPANSION IN THE SOUTHEAST 9312140110 931214 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 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 322 30 TO 59 DAYS 320 60 TO 119 DAYS 325 120 TO 149 DAYS 327 150 TO 179 DAYS 328 180 TO 239 DAYS 338 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 335 30 DAYS 335 60 DAYS 335 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 266 TWO MONTHS 269 THREE MONTHS 278 SIX MONTHS 302 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 319 60 DAYS 320 90 DAYS 322 120 DAYS 325 150 DAYS 328 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/16 2 15/16 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 605 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 707 60 DAYS 714 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 702 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312140109 931214 AIR CANADA PLANS AIRBUS DEAL MONTREAL AIR CANADA SAID IT SIGNED A MEMORANDUM OF UNDERSTANDING FOR THE ACQUISITION OF SIX AIRBUS A340 AIRCRAFT FROM AIRBUS INDUSTRIE FOR DELIVERY IN 1996 AND 1997 WITH OPTIONS FOR AN ADDITIONAL THREE AIRCRAFT A FINAL AGREEMENT IS EXPECTED IN JANUARY THE COMPANIES SAID THE MARKET VALUE OF AN A340 IS ABOUT 120 MILLION THE CARRIER SAID IT WILL USE THE A340S ON TRANSATLANTIC ROUTES TO REPLACE SOME OF ITS BOEING 747S THE ACQUISITION IS SUBJECT TO CLOSING CONDITIONS INCLUDING ARRANGEMENT OF FINANCING BY AIRBUS A EUROPEAN CONSORTIUM 9312140108 931214 INTERNATIONAL GERMAN RETAIL SALES FALL WIESBADEN GERMANY WESTERN GERMAN RETAIL SALES FELL A REAL 73 DURING OCTOBER COMPARED WITH A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID MONDAY FOR THE FIRST 10 MONTHS RETAIL SALES TOTALED 527 BILLION MARKS 31072 BILLION A 41 REAL INCREASE FROM A YEAR EARLIER AND A NOMINAL 22 RISE THE AGENCY REPORTED 9312140107 931214 TECHNOLOGY COURT ORDER SOUGHT BY TEXAS INSTRUMENTS FOR 2 CYRIX DESIGNS DALLAS TEXAS INSTRUMENTS INC ASKED A COURT TO ORDER CYRIX CORP TO GIVE IT THE DESIGNS OF TWO CYRIX MICROPROCESSORS AS THE CHIP COMPANIES' STRAINED RELATIONSHIP FRAYED FURTHER IN A LAWSUIT FILED IN DELAWARE STATE COURT TI SAID CYRIX HAS IMPROPERLY REFUSED TO GIVE IT THE DESIGNS FOR ITS 486SX AND 486DX CHIPS UNDER A 1991 AGREEMENT THE CHIPS ARE CLONES OF TWO INTEL CORP MICROPROCESSORS THAT ACT AS THE BRAINS OF PERSONAL COMPUTERS UNDER THE 1991 PACT CYRIX GAVE TI THE DESIGN FOR ITS 486 CHIP WHICH TI THEN MANUFACTURED FOR THE RICHARDSON TEXAS MAKER OF COPROCESSORS AND MICROPROCESSORS TI ALSO USED THE DESIGN TO MAKE ITS OWN CHIPS CYRIX SAID THE ACCORD DOESN'T CALL FOR THE GIANT ELECTRONICS CONCERN TO GET THE 486SX AND 486DX DESIGNS CYRIX HAS COMPLAINED FOR MANY MONTHS THAT TI HASN'T SUPPLIED IT WITH ENOUGH CHIPS UNDER THE AGREEMENT A CONTENTION DISPUTED BY TI IT'S UNFORTUNATE THAT WE'VE BEEN FORCED INTO COURT OVER THE ISSUES BUT AFTER MORE THAN A YEAR OF NEGOTIATIONS IT IS CLEAR CYRIX ISN'T INTERESTED IN LIVING UP TO ITS CONTRACT THOMAS J ENGIBOUS HEAD OF TI'S SEMICONDUCTOR GROUP SAID IT A WRITTEN STATEMENT CYRIX WHICH IS FIGHTING INTEL IN COURT OVER LICENSING AND PATENTS SAID TI'S SUIT IS LIKELY TO SOUR THE COMPANIES' RELATIONSHIP WE FEEL IT'S PROBABLY ENDED ANY OPPORTUNITY FOR US TO WORK TOGETHER SAID RON EDGERTON CYRIX'S CHIEF FINANCIAL OFFICER TI ALSO ASKED THE COURT TO ORDER CYRIX TO GIVE IT THE DESIGN FOR ITS 586 CHIP ONCE IT IS FINISHED THE 586 CHIP IS TO BE A CLONE OF INTEL'S PENTIUM CHIP 9312140106 931214 ONTARIO HYDRO AGAIN BOOSTS SIZE OF LOSS FOR YEAR BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ONTARIO HYDRO HAS AGAIN INCREASED THE SIZE OF ITS PROJECTED 1993 LOSS TO SIGNIFICANTLY MORE THAN THE PREVIOUSLY ESTIMATED 16 BILLION CANADIAN DOLLARS US121 BILLION AS WRITEOFFS AND RESTRUCTURING COSTS CONTINUE TO MOUNT MAURICE STRONG CHAIRMAN OF HYDRO SAID THAT THE HEADS OF THE STATEOWNED UTILITY'S BUSINESS DIVISIONS ARE REVIEWING THEIR BALANCE SHEETS TO CONSIDER OTHER ITEMS THAT MIGHT APPROPRIATELY BE WRITTEN DOWN HE DIDN'T ELABORATE HYDRO OFFICIALS DECLINED TO COMMENT ON THE SIZE OF THE LOSS THAT IS NOW EXPECTED BUT INDIVIDUALS CLOSE TO THE UTILITY SAY THE FIGURE IS LIKELY TO EXCEED C2 BILLION FOR THE YEAR AS MUCH AS C600 MILLION OF THAT AMOUNT WOULD COME FROM SEVERANCE COSTS AS HYDRO SLASHES JOBS THROUGHOUT THE ORGANIZATION HYDRO SAID ITS EXPECTED OPERATING LOSS WILL BE NARROWER THAN PREVIOUS ESTIMATES OF C200 MILLION FOR THE YEAR BECAUSE OF LOWER OPERATING COSTS AND HIGHER GENERATING LEVELS AT ITS DARLINGTON AND PICKERING NUCLEAR FACILITIES IN THE FIRST HALF OF THE YEAR THE UTILITY WAS HARDHIT BY DECLINING ELECTRICITY SALES AND A NEED TO RELY ON HIGHERCOST GENERATING OPTIONS DUE TO PROBLEMS AT SOME OF ITS NUCLEAR POWER STATIONS ACCORDING TO INTERNAL DOCUMENTS HYDRO HAD A LOSS OF C395 MILLION IN THE FIRST HALF OF 1993 FOR ALL OF 1992 IT REPORTED NET INCOME OF C312 MILLION TO FACILITATE THE WRITEDOWNS HYDRO'S BOARD APPROVED A CHANGE IN ITS ACCOUNTING PRACTICES COMBINING ITS RATE STABILIZATION FUND WITH OTHER RETAINED EARNINGS EARLIER HYDRO OFFICIALS HAD SAID THAT THE C164 BILLION RATE STABILIZATION FUND WOULD HAVE BEEN IN A DEFICIT POSITION ONCE 1993 DEBT RETIREMENT OBLIGATIONS ARE PROVIDED FOR A SITUATION THAT COULD HAVE FORCED THE UTILITY TO SEEK A CHANGE IN THE ONTARIO LEGISLATION UNDER WHICH IT OPERATES AT THE END OF 1993 BEFORE ACCOUNTING FOR ANY CHARGES OR WRITEDOWNS THE NEW COMBINED RETAINED EARNINGS ACCOUNT WILL HAVE C68 BILLION IN EQUITY HYDRO OFFICIALS SAY THE ACCOUNTING CHANGE WILL HELP HYDRO KEEP ITS PLEDGE TO NOT RAISE ITS ELECTRICITY RATES IN 1994 AND MAINTAIN RATE INCREASES FOR THE REST OF THE DECADE AT OR BELOW THE RATE OF INFLATION HYDRO SAID IT EXPECTS TO PROVIDE THE BULK OF THE HEAVY WATER TO BE SOLD TO KOREA UNDER THE THREEYEAR AGREEMENT WHICH TAKES EFFECT JAN 1 1996 THE UTILITY'S BOARD APPROVED A MEASURE TO CUT THE BRUCE FACILITY'S ANNUAL HEAVY WATER PRODUCTION IN HALF TO 350 TONS AND CUT 280 OF 800 JOBS AT THE PLANT WITHOUT THE CONTRACT HYDRO SAID THE PLANT COULD HAVE BEEN COMPLETELY SHUT DOWN ATOMIC ENERGY OF CANADA A FEDERAL GOVERNMENT AGENCY HAS SOLD THREE OF ITS CANDU NUCLEAR REACTORS TO THE KOREAN UTILITY 9312140105 931214 COMMODITIES PRECIOUSMETALS PRICES DRIVEN UP BY SILVER RUSH BUYING BY JAPANESE DEALERS SMALL US INVESTORS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS PRICES LEAPED HIGHER AS JAPANESE DEALERS AND SMALL US INVESTORS RUSHED TO BUY FUTURES CONTRACTS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS UP 370 TO 38860 AN OUNCE THE PRICE OF THE MARCH SILVER FUTURES CONTRACT ALSO CONTINUED ITS RAPID CLIMB RISING 105 CENTS TO 5165 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JANUARY DELIVERY WAS UP 610 TO 38810 AN OUNCE THIS RALLY IS BEING DRIVEN BY THE SILVER SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING FOR SWISS BANK CORP THE ECONOMIC UPTURN IN THE US AND ELSEWHERE IS SUPPORTING SILVER MORE THAN GOLD BECAUSE IT'S USED MORE INDUSTRIALLY DESPITE THE BULLISH EUPHORIA ENERGIZING PRECIOUSMETALS MARKETS SOME ANALYSTS SEE REASON FOR CAUTION THOUGH MOST THINK GOLD PRICES ARE HEADED HIGHER OVER THE LONG TERM THEY SAY THE MARKET MAY MOVE IN FITS AND STARTS RATHER THAN STEADILY HIGHER FOR EXAMPLE A COMMITMENTOFTRADERS REPORT RELEASED YESTERDAY BY THE COMMODITY FUTURES TRADING COMMISSION SHOWED AN INCREASE IN SMALL TRADERS' LONG POSITIONS OR WAGERS AMONG SMALL SPECULATORS THAT GOLD PRICES WILL RISE BUT THE REPORT SHOWED A DECREASE IN LONG POSITIONS AMONG BIGGER PLAYERS SUCH AS BANK DEALERS AND GOLD PRODUCERS LONG POSITIONS AMONG SMALL INVESTORS ROSE BY 4141 CONTRACTS AT THE COMEX LAST WEEK WHILE DEALERS AND PRODUCERS DECREASED LONG COMMITMENTS BY 13287 CONTRACTS THAT'S A BIT OF A CAUTION SIGN WHICH INDICATES THE RALLY HAS A HIGH LEVEL OF SPECULATIVE MOTIVATION SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IT SHOWS THAT COMMERCIALS BANK DEALERS AND PRODUCERS ARE SELLING INTO THE RALLY WHICH CAN BE A WARNING SIGN OTHER FACTORS THAT AFFECTED THE GOLD MARKET POSITIVELY YESTERDAY INCLUDED CONTINUED SILVER PURCHASING BY MIDDLE EASTERN INVESTOR SYNDICATES THE MARKET ALSO GOT A BOOST FROM THE POTENTIAL FOR POLITICAL INSTABILITY IN RUSSIA WHERE PRESIDENT BORIS YELTSIN'S POLITICAL OPPONENTS WON THE RIGHT TO REPRESENTATION IN PARLIAMENT MR O'NEILL SAID ALSO ADDING STRENGTH WAS BUYING BY DEALERS AND OTHERS IN JAPAN JAPAN'S AUTO INDUSTRY IS TRADITIONALLY A BIG BUYER OF PLATINUM WHICH IT USES TO MANUFACTURE CATALYTIC CONVERTERS THE COUNTRY'S RECESSION HAD TAKEN A TOLL ON PLATINUM PRICES BUT THE RETURN OF JAPANESE BUYERS TO THE MARKET YESTERDAY WAS SEEN BY SOME TRADERS AS FORESHADOWING MORE BUYING IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDEOIL FUTURES PRICES FELL SHARPLY YESTERDAY AS AN OVERSUPPLY OF CRUDE AND POOR DEMAND CONTINUED TO PRESSURE THE MARKET ESPECIALLY BEARISH WERE REPORTS BY THE MIDDLE EAST ECONOMIC SURVEY A WIDELY RESPECTED INDUSTRY PUBLICATION WHICH SAID THAT SAUDI ARABIA WOULD NOT ATTEND AN EMERGENCY MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IF ONE WERE CALLED SAUDI OIL MINISTER HISHAM NAZER ALSO TOLD FELLOW MINISTERS THAT SAUDI ARABIA ISN'T READY TO CUT PRODUCTION REGARDLESS OF WHERE OIL PRICES GO THE PUBLICATION SAID CRUDE OIL FOR JANUARY DELIVERY FELL 55 CENTS A BARREL TO SETTLE AT 1452 LARGELY ON THE NEWS GRAINS & SOYBEANS PRICES OF CORN WHEAT AND SOYBEAN FUTURES CONTRACTS SLIPPED ON SELLING BY COMMODITY FUND MANAGERS WHO APPARENTLY WERE SPURRED TO TAKE PROFITS BY UNCERTAINTY OVER RUSSIAN ELECTION RESULTS TRADERS ARE CONCERNED THAT A WEAKENING OF MR YELTSIN'S POLITICAL POWER WOULD THREATEN US FOOD AID TO MOSCOW SOYBEAN PRICES ALSO WERE HURT BY REPORTS THAT RAIN IS HELPING BRAZIL'S SOYBEAN CROP CORN PRICES WERE DEPRESSED BY GROWING SPECULATION THAT THE US ENVIRONMENTAL PROTECTION AGENCY WILL RESTRICT THE USE OF CORNBASED ETHANOL FUEL ADDITIVES IN CITIES WHERE THE AIR IS HEAVILY POLLUTED BY OZONE ALTHOUGH ETHANOLBLENDED FUEL IS USED IN MANY CITIES TO REDUCE AUTOMOBILES' CARBONMONOXIDE EMISSIONS SOME STUDIES INDICATE THAT ETHANOL CONTRIBUTES TO OZONE POLLUTION A RULING BY THE EPA IS EXPECTED TOMORROW A DECISION TO EXCLUDE ETHANOLBLENDED FUEL FROM OZONEPOLLUTED CITIES WOULD LOWER CORN DEMAND IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY FELL 225 CENTS A BUSHEL TO SETTLE AT 29125 A BUSHEL 9312140104 931214 WHO'S NEWS NESTLE USA NAMES JOE WELLER PRESIDENT AND CHIEF EXECUTIVE GLENDALE CALIF NESTLE USA INC A UNIT OF SWISS FOOD COMPANY NESTLE SA SAID JOE WELLER PRESIDENT AND CHIEF OPERATING OFFICER WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE OFFICER MR WELLER 48 YEARS OLD SPENT HIS 25YEAR CAREER WITH CARNATION AND NESTLE HE SUCCEEDS TIMM CRULL 62 CURRENT CHIEF EXECUTIVE OFFICER FOR NESTLE USA WHO WILL REMAIN CHAIRMAN OF NESTLE USA AND EXECUTIVE VICE PRESIDENT OF NESTLE SA RESPONSIBLE FOR NORTH AMERICAN OPERATIONS THE CHANGES ARE EFFECTIVE JAN 1 ADDITIONALLY TONY MARTINO EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NESTLE USA ANNOUNCED HIS RETIREMENT HE WILL BE SUCCEEDED BY MARIO CORTI WHO JOINED NESTLE USA IN 1990 AS SENIOR VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER BEFORE JOINING NESTLE MR CORTI SERVED AS AMBASSADOR AND DELEGATE OF THE SWISS GOVERNMENT FOR TRADE AGREEMENTS NESTLE USA DECLINED TO ELABORATE ON THE CHANGES 9312140103 931214 CORPORATE FOCUS RYDER MOVES BACK HOME TO TRUCK LEASING AND RENTING WITH RESTRUCTURING BEHIND IT TRANSPORTATION CONCERN NOW SEEKS GROWTH BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL RYDER SYSTEM INC IS RETURNING TO ITS ROOTS WITH THE SPINOFF THIS MONTH OF ITS HUGE AVIALL AVIATION DIVISION RYDER COMPLETES A PAINFUL FOURYEAR RESTRUCTURING HAVING SHED ALMOST A DOZEN PERIPHERAL BUSINESSES AS WELL AS MULTIPLE LAYERS OF MANAGEMENT ONE OF THE NATION'S LARGEST HIGHWAYTRANSPORTATION CONCERNS LOOKS MUCH LIKE IT DID MORE THAN A DECADE AGO WITH REMAINING OPERATIONS IN TRUCK LEASING TRUCK RENTING AND AUTO HAULING WALL STREET HAS CHEERED THE RETRENCHMENT JACKING MIAMIBASED RYDER'S STOCK PRICE UP TO ABOUT 30 AFTER A 1990 LOW OF 1225 BUT AS THE CURTAIN FALLS ON RYDER'S ERA OF EXCESS INVESTORS WONDER WHAT THE COMPANY WILL DO NEXT IN THE SHORT TERM BY MOST ACCOUNTS RYDER'S PROSPECTS ARE BRIGHT M ANTHONY BURNS THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO CAME UNDER HEAVY FIRE BEFORE DIRECTING THE UTURN AT RYDER GROWS ENTHUSIASTIC ABOUT THE CHANCE TO FOCUS ON FUNDAMENTALS TODAY'S LEAN RYDER HE SAYS IS PARLAYING THE RECENT ECONOMIC UPTURN INTO RECORD PRETAX EARNINGS AND REVENUE IN ITS LARGE VEHICLELEASING AND SERVICES DIVISION HE BELIEVES RYDER CAN TURN A CONSISTENT PROFIT IN THE TRUCKING BUSINESS NOW THAT IT'S NOT DISTRACTED BY AVIATION INSURANCE FREIGHT AND OTHER LINES OF BUSINESS WE HAVE SHARPLY FOCUSED THE COMPANY BACK INTO OUR CORE COMPETENCIES MR BURNS SAYS NOW ALL THE RESOURCES OF RYDER CAN BE DEVOTED TO HIGHWAY TRANSPORTATION STILL FUNDAMENTAL PROBLEMS REMAIN DESPITE INTENSIFIED MARKETING EFFORTS REVENUE GROWTH IN SOME OF THE COMPANY'S TRUCKING BUSINESSES HAS BEEN DISAPPOINTING IN CONSUMER RENTALS RYDER TURNS ONLY A SMALL PROFIT ON ITS FLEET OF 31000 BRIGHT YELLLOW TRUCKS THANKS TO STUBBORN COMPETITION FROM UHAUL INTERNATIONAL INC AND OTHERS AND THE AUTOTRANSPORT OPERATION WHICH ACCOUNTS FOR 16 OF SALES IS BOGGED DOWN BY CONTINUING TROUBLES AT GENERAL MOTORS CORP RYDER'S LARGEST CUSTOMER WHEN TIMES ARE GOOD RYDER THROWS OFF A HUGE CASH FLOW SAYS THOMAS GALVIN MANAGING DIRECTOR OF CJ LAWRENCE/DEUTSCHE BANK SECURITIES CORP IN NEW YORK BUT EVEN CHEERLEADERS LIKE MR GALVIN SAY INVESTORS ARE BEGINNING TO ASK HOW RYDER IS GOING TO AVOID THE CYCLICALITY THAT HISTORICALLY PLAGUES IT WHAT THE COMPANY HAS TO DO IS TRANSITION FROM A RESTRUCTURING STORY TO A MORE GROWTHORIENTED COMPANY MR GALVIN SAYS ACCORDING TO MR BURNS RYDER IS READY TO MAKE THAT TRANSITION WITHIN OUR CORE COMPETENCIES WE CAN NOW EXPAND PRUDENTLY HE SAYS FOR THE FIRST TIME IN YEARS COMPANY EXECUTIVES TALK ABOUT POTENTIAL ACQUISITIONS PARTICULARLY IN FULLSERVICE LEASING AND HIGHTECH TRANSPORTATION PLANNING EVEN SO RYDER EXPECTS MOST NEW CUSTOMERS TO SPRING FROM THE SAME PLACE THEY ALWAYS HAVE COMPANIES THAT DO THEIR OWN TRUCKING THE MARKET FOR INHOUSETRUCKING OR PRIVATE CARRIAGE TOTALS SOME 200 BILLION ANNUALLY ACCORDING TO ERNIE RIDDLE RYDER'S SENIOR VICE PRESIDENT OF MARKETING AND SALES AND 47 BILLION OF THAT REPRESENTS THE COST OF SUCH EQUIPMENT AS TRUCKS RYDER'S SPECIALTY IF RYDER CAN CAPTURE A FRACTION OF THAT BUSINESS ITS 4 BILLION OR SO IN ANNUAL REVENUE COULD SOAR OUTSOURCING IS HARDLY A NEW CONCEPT AND RYDER HAS BEEN GOING AFTER THE PRIVATE CARRIAGE MARKET FOR DECADES BUT RYDER EXECUTIVES AND INDUSTRY ANALYSTS BELIEVE COMPANIES ARE NOW TURNING TO OUTSIDE EXPERTISE MORE THAN EVER TRANSPORTATION OUTSOURCING IS DEFINITELY A TREND AND IT'S NOT CYCLICAL SAYS DANIEL SMITH OF MERCER MANAGEMENT CONSULTING INC IN SAN FRANCISCO SUCH COMPANIES AS RYDER PROVIDE NOT ONLY EQUIPMENT BUT ALSO MAINTENANCE FUEL AND DRIVERS IT CAN BE TOUGH HOWEVER TO CONVINCE COMPANIES TO HAND OVER EVEN A PORTION OF THEIR SHIPPING OPERATIONS IT TAKES A WHILE TO SHAKE LOOSE OF THE NOTION THAT YOU CAN DO EVERYTHING YOURSELF MR SMITH SAYS THAT'S ONE REASON RYDER HAS HAD A DIFFICULT TIME BOOSTING REVENUE IN THIS AREA TO ADDRESS THE ISSUE RYDER BEEFED UP ITS SALES FORCE TO MORE THAN 800 REPRESENTATIVES A 38 JUMP FROM TWO YEARS AGO AND FOR THE FIRST TIME REPS ARE ARMED WITH LAPTOP COMPUTERS THAT CAN SHRINK THE TIME IT TAKES TO ORDER A TRUCK FROM OVER A WEEK TO PERHAPS THREE DAYS MORE IMPORTANT RYDER'S MR RIDDLE SAYS IS THE COMPANY'S VOW TO BE MORE FLEXIBLE MR RIDDLE WHO CAME TO RYDER FROM THE MARKETING DEPARTMENT AT XEROX CORP A YEAR AGO IS EXPANDING RYDER'S PRODUCT OFFERINGS BEFORE WE HAD THE ATTITUDE THAT SIZE 42 FITS ALL HE SAYS FOR THE FIRST TIME RYDER IS TAILORING SERVICES TO INDIVIDUAL CUSTOMERS IN THE CASE OF HOME DEPOT INC OF ATLANTA RYDER AGREED TO REDESIGN MANY OF THE 275 TRUCKS IT LEASES TO THE HOMEIMPROVEMENT RETAILER AND TO SERVE THE GROWING NUMBER OF PROFESSIONAL BUILDERS WHO USE HOME DEPOT RYDER EQUIPPED EACH OF THE FLATBED TRUCKS WITH A FORKLIFT WE'RE CHANGING OURSELVES TO A SALES AND MARKETING ORIENTED COMPANY MR RIDDLE SAYS IN ADDITION TO SNARING NEW CUSTOMERS RYDER WANTS TO GO DEEPER INTO EXISTING ACCOUNTS MR RIDDLE SAYS A CUSTOMER TYPICALLY BEGINS USING RYDER AS A SOURCE FOR RENTED TRUCKS WHEN DELIVERYDEMANDS SUDDENLY GROW RENTAL CUSTOMERS OFTEN BECOME LEASING CUSTOMERS AND LEASING CUSTOMERS SOMETIMES WANT RYDER TO PROVIDE DRIVERS AND TO DESIGN ENTIRE DELIVERY SYSTEMS IN A TYPICAL SCENARIO RYDER DRIVERS AND TRUCKS WEAR THE COLORS AND LOGOS OF CUSTOMERS THIS LEVEL OF SERVICE KNOWN AS DEDICATED LOGISTICS IS A KEY SOURCE OF REVENUE GROWTH THE SEGMENT WILL ACCOUNT FOR ABOUT 600 MILLION OF RYDER REVENUE FOR 1993 MR BURNS SAYS A 20 INCREASE OVER 1992 HE ESTIMATES THAT THE LOGISTICS MARKET WHICH TODAY TOTALS UP TO 5 BILLION COULD GROW TO 25 BILLION BY THE END OF THE DECADE MANY ANALYSTS BELIEVE INTERNATIONAL GROWTH IS VITAL THUS FAR HOWEVER RYDER HASN'T TAKEN MANY CHANCES ABROAD ALTHOUGH IT DOES PLAN TO EXPAND ITS 67SITE LEASING AND LOGISTICS OPERATION IN BRITAIN AND TO INTRODUCE NEW SERVICES IN GERMANY AND MEXICO RYDER DOESN'T INTEND TO TRANSPLANT ITS CONSUMERRENTAL AUTOCARRIAGE OR SCHOOLBUS SERVICES OVERSEAS HOWEVER IN ESSENCE WE'RE FOLLOWING OUR CUSTOMERS SAYS MR BURNS WHO RECENTLY SIGNED A DEAL TO MAINTAIN PEPSICO INC'S FLEET OF 69 TRUCKS IN WARSAW RYDER'S ULTIMATE CHALLENGE MAY BE TO GROW EVEN WHEN THE ECONOMY LAGS TRUCK RENTALS AND LEASINGS ARE CLOSELY TIED TO FACTORS SUCH AS HOME SALES AND CONSTRUCTION ACTIVITY RYDER'S PROBLEMS IN AUTO HAULING ILLUSTRATE JUST HOW FICKLE ITS BUSINESS CAN BE IN RECENT MONTHS THE SEGMENT HAS SAGGED PRETAX EARNINGS FELL NEARLY 40 FOR THE FIRST NINE MONTHS PARTLY DUE TO WEAK SALES AT GM WHICH HAVEN'T INCREASED AS MUCH AS THOSE AT CHRYSLER CORP AND FORD MOTOR CO WHICH ARE BOTH SMALLER RYDER CUSTOMERS EVEN BAD LUCK PLAYS A ROLE GM RECENTLY CLOSED ONE OF ITS TWO CHEVROLET CAPRICE PLANTS THE ONE SERVED BY RYDER 9312140102 931214 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY DECEMBER 1 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9312140101 931214 GEEWHIZ GADGETRY LETS MORE AMERICANS GO IT ALONE BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL IN THE OLD DAYS BEFORE PERSONAL COMPUTERS PEOPLE WHO WORKED AT HOME TENDED TO BE VERY POOR PIECEWORKERS SAY OR POETS OR VERY PRIVILEGED IE THE PRESIDENT OF THE US THEN CAME PCS AND A WAVE OF WORKERS WHO COULD COMPOSE SENTENCES OR CRUNCH NUMBERS AS EASILY FROM HOME AS FROM URBAN OFFICE TOWERS NOW NEW LEAPS IN TECHNOLOGY AND A GROWING TOLERANCE FOR HOMEBASED WORK ARE CREATING YET ANOTHER BREED THOSE WHO DO JOBS THAT UNTIL RECENTLY WERE INCONCEIVABLE OUTSIDE SKYSCRAPERS CLASSROOMS OR THE COMPANY OF OTHER PEOPLE THINK OF ALMOST ANY JOB OR BUSINESS AND SOMEONE'S DOING IT FROM HOME SAYS BERNADETTE GREY EDITOR OF HOME OFFICE COMPUTING A RECENT SURVEY IN HER MAGAZINE INCLUDED A ONEMAN GASPIPELINE COMPANY A STUFFEDANIMAL MANUFACTURER AND AN AERIAL PHOTOGRAPHER WHO RIGS CAMERAS ON BLIMPS THAT SHE STEERS FROM THE GROUND NEW GADGETRY IS THE KEY TO MOST SUCH JOBS WHILE FAMILY PRESSURES OFTEN PROVIDE THE IMPETUS FOR USING IT FOR EXAMPLE MICHAEL ENDRES A GRAPHIC DESIGNER WANTED TO RAISE HIS YOUNG SON OUTSIDE THE CITY BY RELYING ON SCREEN SHARING SOFTWARE AND NEW HIGHSPEED MODEMS HE WAS ABLE TO MOVE HIS OFFICE LAST YEAR FROM WASHINGTON DC TO WATERFORD VA AT THE FOOT OF THE BLUE RIDGE MOUNTAINS HIS NEW FEDERAL EXPRESS ADDRESS LOG CABIN ON MAIN STREET IN THIS 18THCENTURY VILLAGE MR ENDRES PERFORMS THE MOST CONTEMPORARY OF TASKS AS A COLLEAGUE DRAWS ON A COMPUTER SCREEN IN WASHINGTON MR ENDRES WATCHES AND THEN JOINS IN I'M NOT SURE ABOUT THOSE BUSHES HE SAYS TO HIS PARTNER BY TELEPHONE AS THE TWO MEN GAZE AT COMPUTERS 50 MILES APART THAT DISPLAY THE SAME COLOR IMAGE OF AN ENVIRONMENTAL EXHIBIT THEY ARE DESIGNING FOR A MUSEUM EASILY FIXED MR ENDRES'S SCREEN FILLS WITH SCRIBBLES OF BROWN DIRT THAT HIS COLLEAGUE IN WASHINGTON IS PAINTING IN MR ENDRES THEN ADDS A FEW STROKES THAT APPEAR SIMULTANEOUSLY ON HIS COWORKER'S SCREEN EVEN FARTHER AFIELD IS GRAHAM NASH THE SINGER/SONGWRITER OF CROSBY STILLS AND NASH FAME IN MAY HE AND ANOTHER MUSICIAN PLAYED BEFORE AN AUDIENCE AT A SAN FRANCISCO AUDITORIUM NOTHING NEW ABOUT THAT EXCEPT THAT MR NASH PLAYED THE PIANO AT HIS HOME IN HAWAII WHILE HIS DUET PARTNER PLUCKED HIS GUITAR ON THE CALIFORNIA STAGE 2500 MILES AWAY THEY WERE LINKED BY NEW TELEPHONE TECHNOLOGY THAT CAN TRANSMIT CDQUALITY SOUND THE AUDIENCE WATCHED MR NASH THROUGH A VIDEO LINKUP FOR MR NASH WHO USUALLY RESIDES IN SOUTHERN CALIFORNIA THESE NEW TOOLS WILL ALLOW HIM TO CUT ALBUMS MILES FROM A RECORDING STUDIO THE ADVANTAGE IS THAT YOU DON'T HAVE TO SIT ON THE VENTURA FREEWAY FOR THREE HOURS SAYS THE MUSICIAN WHO WANTS TO SPEND MORE TIME WITH HIS CHILDREN MR NASH ALSO CAN COLLABORATE WITH OTHER ARTISTS WHENEVER THE MOOD STRIKES SAY I WANT TO WORK SOMETHING OUT WITH PETER GABRIEL IN LONDON HE EXPLAINS I CAN CALL HIM UP PLAY SOMETHING AND ASK WHERE SHOULD I GO WITH THE CHORUS' PETER GOES TO THE PIANO TRIES SOMETHING AND SAYS GO TO AFLAT' AND THE WHOLE TIME WE'RE WATCHING EACH OTHER ON VIDEO SCREENS SUCH TECHNOWIZARDRY ISN'T YET READILY AVAILABLE OR AFFORDABLE FOR MOST HOME WORKERS BUT OFTEN A LIVELY IMAGINATION AND A WILLINGNESS TO BUCK CONVENTIONAL NOTIONS ABOUT WORKING AT HOME PROVE AS IMPORTANT AS THE TECHNOLOGY THAT MAKES SUCH WORK POSSIBLE WHEN JAMIE NEELY'S WIFE DEVELOPED LEUKEMIA THREE YEARS AGO HE HAD TO MAKE SOMETHING UP REAL QUICK SO I COULD WORK AT HOME AND CARE FOR HER AN ENTOMOLOGIST BY TRAINING HE LEFT HIS JOB WITH AN INDUSTRIALGAS COMPANY IN HONOLULU AND SET UP A HOME BUSINESS THAT PROVIDES DETAILED REPORTS ON TERMITE DAMAGE THE TECHNOLOGICAL KEY A DIGITAL CAMERA THAT CAN DOWNLOAD PHOTOGRAPHS ONTO A COMPUTER ALLOWING MR NEELY TO INSERT PICTURES DIRECTLY INTO HIS LASERPRINTED REPORTS BUT THE BIGGER LEAP HE SAYS WAS PSYCHOLOGICAL FOR TWO YEARS HE NEVER TOLD CLIENTS THAT HE WORKED FROM HOME BECAUSE I WAS WORRIED THAT THEY WOULD THINK I WAS A FLYBYNIGHT OPERATOR GRADUALLY THOUGH HE REALIZED THERE IS NO LONGER MUCH STIGMA ATTACHED TO WORKING AT HOME NOW I TELL EVERYONE MR NEELY SAYS USUALLY PEOPLE ARE ENVIOUS A SIMILAR SUCCESS SAGA IS THAT OF JANICE GUTHRIE A FORMER COLLEGE ADMINISTRATOR IN CONWAY ARK DIAGNOSED WITH ADVANCED OVARIAN CANCER IN 1983 SHE READ ALL SHE COULD ABOUT HER ILLNESS AT A MEDICAL LIBRARY THEN AFTER LEAVING WORK BECAUSE OF HER CANCER SHE CREATED A BUSINESS BASED ON HER OWN EXPERIENCE FOR INSTANCE IF A DIABETES PATIENT WANTS INFORMATION ABOUT THE DISEASE AND ITS TREATMENT MS GUTHRIE COMPILES A REPORT OF 100 PAGES OR MORE MAINLY FROM COMPUTER SEARCHES THE SCHEME WHICH STARTED AT MS GUTHRIE'S KITCHEN TABLE HAS SINCE TAKEN OVER TWO BEDROOMS THE HOUSE'S ENTRYWAY AND THE GARAGE NOW OUT OF SPACE MS GUTHRIE IS RELUCTANTLY MOVING HER SEVENPERSON COMPANY TO A NEARBY OFFICE COMPLEX BUT SHE HOPES TO RETAIN A HOMEY ATMOSPHERE FOR INSTANCE BY DISPENSING WITH DRESS CODES I HOPE TO TAKE A BIT OF HOME BACK TO THE OFFICE SHE SAYS FOR MS GUTHRIE AND MR NEELY NECESSITY PROVED THE MOTHER OF INVENTION THIS WAS LITERALLY TRUE FOR AB MOBASHER A TOOL AND DIE MAKER WHO AFTER BEING LAID OFF THIS YEAR BEGAN WORKING AT HIS HOME IN KIRKLAND WASH AS AN INVENTOR MR MOBASHER WHOSE BUSINESS CARD SAYS IDEA MAN DESIGNS PRODUCTS ON HIS HOME COMPUTER AND DININGROOM TABLE AND HEATS PLASTIC IN HIS KITCHEN OVEN FOR CASTINGS WITH OVERHEAD LOW HE GETS BY ON UNEMPLOYMENT BENEFITS WHILE HE SEARCHES FOR SPONSORS FOR HIS FAVORITE CREATIONS AMONG THEM IS A NOVEL FOOTBALL IT'S A BALL WITH FEET HE EXPLAINS ASKED WHAT KIDS WOULD DO WITH IT THE IRANIANBORN INVENTOR LAUGHS WHAT DID THEY DO WITH PET ROCK WITH HULAHOOP THIS IS AMERICA KIDS LOVE CRAZY THINGS THEN THERE'S AMERICA'S PASTIME NOT ALL OF WHICH OCCURS AT THE BALLPARK HOLLY AND HENRY STEPHENSON DRAW UP THE SCHEDULES FOR THE MAJOR LEAGUE BASEBALL SEASON AT THEIR HOUSE ON NEW YORK'S STATEN ISLAND WHEN MR STEPHENSON TELLS STRANGERS ABOUT THIS WORK THEY THINK IT'S A JOB OF SUCH MASSIVE PROPORTIONS THAT IT WOULD NEED TO BE HANDLED BY A BIG COMPANY IN A HUGE OFFICE HE SAYS FOR OTHERS THE NOTION OF A HUSBAND AND WIFE WORKING AT HOME EVOKES FOLKSY IMAGES OF A MOMANDPOP BUSINESS HE SAYS ADDING BUT IN REALITY THERE'S THE FAX THE MODEM THE COPIER AND COMPUTER PAPER ALL OVER THE PLACE NADINE CLARKE DOESN'T HAVE THAT PROBLEM AND SHE MAY REPRESENT A LOWTECH COUNTERTREND IN HOME EMPLOYMENT A TORONTO SCIENCE TEACHER SHE FEELS CLASSROOMS AND THE SCHOOL LAB AREN'T ALWAYS IDEAL PLACES TO GET CLOSE TO INSECTS AND ANIMALS IN THEIR OWN ENVIRONMENT A BETTER SETTING HER OWN BACKYARD ALL 90 SQUARE FEET OF IT TWO SUMMERS AGO SHE STARTED A DAY CAMP AT WHICH CHILDREN STUDY BUGS CRAWLING UNDER ROCKS BIRDS FEEDING AT TREES AND THE FISH IN HER TINY POND HER BIGGEST PROBLEM RAIN SAYS THE 38YEAROLD MOTHER OF TWO WE HAVE TO MOVE ALL THE SPIDERS AND CENTIPEDES INTO THE GARAGE SEE RELATED ARTICLE HOME WORK SOME THRIVE BUT MANY WILT WORKING AT HOME WSJ DEC 14 1993 9312140100 931214 CIRCUIT CITY REPORTS 17 GAIN IN NET FOR 3RD PERIOD UNVEILS GROWTH PLANS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL ELECTRONICS RETAILING GIANT CIRCUIT CITY STORES INC REPORTING GOOD RESULTS FOR ITS FISCAL THIRD QUARTER SAID IT PLANS TO OPEN 180 NEW SUPERSTORES THAT WILL PLACE THE COMPANY IN MOST MAJOR US MARKETS WITHIN THREE YEARS THE RICHMOND VA COMPANY THE NATION'S LARGEST SPECIALTY RETAILER OF BRANDNAME CONSUMER ELECTRONICS AND MAJOR APPLIANCES IS CURRENTLY LOCKED IN A BATTLE FOR NEW MARKETS WITH BEST BUY CO OF MINNEAPOLIS CIRCUIT CITY SAID IT WILL OPEN ABOUT 60 SUPERSTORES NEXT YEAR IN PORTLAND ORE SEATTLE NEW ORLEANS AND BEST BUY'S OWN HOME MARKET OF MINNEAPOLIS AS WELL AS IN OTHER CITIES THE COMPANY SAID ITS ACCELERATED THREEYEAR PLAN ALSO INCLUDES OPENING 20 SMALLERSIZE STORES IN SOME MARKETS ALONG WITH THE EXPANSION PLANS CIRCUIT CITY ALSO ANNOUNCED TWO NEW SERVICE CONTRACTS FOR INHOME SERVICE FOR PERSONALCOMPUTER PRODUCTS AND CONTRACTS COVERING CONSUMER ELECTRONICS AND MAJOR APPLIANCES THE ELECTRONICS AND APPLIANCE COVERAGE WILL BE INTRODUCED IN HIGHLY COMPETITIVE MARKETS THE COMPANY SAID RICHARD L SHARP CIRCUIT CITY'S PRESIDENT AND CHIEF EXECUTIVE SAID THE AGGRESSIVE EXPANSION PROGRAM AND WARRANTY SERVICES REAFFIRM CIRCUIT CITY'S COMMITMENT TO ATTAINING MARKETSHARE LEADERSHIP BY OFFERING BOTH COMPETITIVE PRICES AND EXCEPTIONAL CUSTOMER SERVICE CIRCUIT CITY SAID NET INCOME IN THE QUARTER ENDED NOV 30 ROSE 17 TO 195 MILLION OR 20 CENTS A SHARE FROM 166 MILLION OR 17 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 26 IN THE QUARTER TO 102 BILLION FROM 8054 MILLION IN LAST YEAR'S QUARTER BUSINESS FOR MOST CONSUMERELECTRONICS RETAILERS HAS BEEN DIFFICULT SO CIRCUIT CITY'S EXPECTED COMPARABLESTORE SALES INCREASE OF 5 FOR THE QUARTER WAS CONSIDERED GOOD THOUGH NOT IMPRESSIVE BY ANALYSTS COMPARABLESTORE SALES REFER TO STORES OPEN AT LEAST A YEAR ANALYSTS SAID CIRCUIT CITY'S EXPANSION WILL CAPITALIZE ON ITS FINANCIAL STRENGTH AND SIZE TO FEND OFF COMPETITORS BUT THE RETAILER'S EARNINGS WERE ONE CENT BELOW ANALYSTS' CONSENSUS EARNINGS PROJECTIONS OF 21 CENTS A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CIRCUIT CITY SHARES DROPPED 175 TO 2125 MR SHARP ALSO NOTED THE INCREASED PRICE COMPETITION THAT HAS MARKED THE INDUSTRY IN RECENT YEARS THE COMPANY'S RESULTS REFLECT AN INCREASINGLY COMPETITIVE RETAIL CLIMATE THAT INCLUDES DISCOUNT MERCHANTS WAREHOUSE CLUBS AND OTHER SPECIALTY COMPETITORS MR SHARP SAID HE SAID GROSS PROFIT MARGINS FOR THE QUARTER WERE 258 COMPARED WITH 275 IN THE QUARTER LAST YEAR HE NOTED THE MARGINS ALSO REFLECTED A HIGHER PERCENTAGE OF PERSONAL COMPUTERS IN THE STORES' SALES MIX CIRCUIT CITY HAS BEEN BUSY OPENING NEW SUPERSTORES WHICH CARRY A DEEP AND WIDE SELECTION OF ELECTRONICS AND APPLIANCES AT COMPETITIVE PRICES DURING THE QUARTER CIRCUIT CITY OPENED 26 STORES INCLUDING FIVE SUPERSTORES IN BOSTON AND 14 IN CHICAGO BUT THE COMPANY ALSO SAID THAT DURING THE QUARTER IT INTRODUCED ITS SMALLERSIZE PROTOTYPE STORES THE FIRST TWO OF THESE STORES ARE LOCATED IN HARRISONBURG VA AND FREDERICKSBURG VA AT ABOUT 15000 SQUARE FEET THEY ARE ABOUT HALF THE SIZE OF THE COMPANY'S SUPERSTORES ALTHOUGH THEY STILL CARRY A BROAD SELECTION OF CONSUMER ELECTRONICS MAJOR APPLIANCES AND HOMEOFFICE PRODUCTS 9312140099 931214 CANADA EXPRIME MINISTER RESIGNS AS PARTY LEADER OTTAWA FORMER CANADIAN PRIME MINISTER KIM CAMPBELL ANNOUNCED HER RESIGNATION AS LEADER OF THE OPPOSITION PROGRESSIVE CONSERVATIVE PARTY IN THE OCT 25 ELECTION THE CONSERVATIVES UNDER MS CAMPBELL SUFFERED THE WORST DEFEAT IN THEIR HISTORY THEY WON ONLY TWO SEATS IN THE 295SEAT HOUSE OF COMMONS MS CAMPBELL WHO IS 46 YEARS OLD SAID HER RESIGNATION WAS IN THE INTEREST OF THE PARTY SHE WAS PRIME MINISTER FROM JUNE 25 UNTIL NOV 4 SHE SUCCEEDED BRIAN MULRONEY WHO RESIGNED AS PRIME MINISTER AFTER HEADING A CONSERVATIVE GOVERNMENT FOR NINE YEARS THE CONSERVATIVE PARTY'S NATIONAL EXECUTIVE PLANS TO MEET SOON TO DISCUSS ARRANGEMENTS FOR PICKING A NEW LEADER JEAN CHAREST ONE OF THE TWO CONSERVATIVE MEMBERS OF PARLIAMENT IS EXPECTED TO BE SELECTED MS CAMPBELL WAS SUCCEEDED AS PRIME MINISTER BY JEAN CHRETIEN LEADER OF THE LIBERAL PARTY WHICH WON A MAJORITY OF HOUSE OF COMMONS SEATS IN THE OCT 25 ELECTION 9312140098 931214 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION HOUSTON LIGHTING & POWER CO A UNIT OF HOUSTON INDUSTRIES INC AN OFFERING FOR 280 MILLION OF FIRST MORTGAGE BONDS LXR BIOTECHNOLOGY INC AN OFFERING OF THREE MILLION COMMON SHARES VIA D BLECH & CO OCCIDENTAL PETROLEUM CORP AN OFFERING OF 10 MILLION SHARES OF CUMULATIVE INDEXED CONVERTIBLE PREFERRED STOCK WITH A LIQUIDATION PREFERENCE OF 50 A SHARE VIA MORGAN STANLEY & CO AND MERRILL LYNCH & CO 9312140096 931214 BUSINESS WORLD CALM DOWN RISK IS NOT ALL AROUND BY TIM W FERGUSON FEAR OF RANDOM HARM GRIPS THE NATION CRIME COSTS THE AVERAGE AMERICAN 1600 A YEAR BUSINESS WEEK ESTIMATES PLUS INCONVENIENCE AND ANXIETY EVERYDAY ENVIRONMENTAL DANGERS WORRY SOME PEOPLE WHATEVER HAPPENED TO OUR SAFETY THE ANSWER IS WE'VE NEVER ENJOYED SO MUCH OF IT IF THE ULTIMATE MEASURE IS DEATH THE ACCOMPANYING GRAPH SHOWS RISK GOING DOWN DOWN DOWN NOW IT TRACKS ONLY UNINTENDED FATALITIES BUT ADD ALL THE SLAYINGS AND IT WOULDN'T CHANGE THE PICTURE MUCH SINCE 1972 AND DESPITE THE NOTORIOUS CASES THAT HAVE SO MANY ON EDGE EVEN CRIME HAS REMAINED MOSTLY LOCALIZED TO WHERE CRIMINALS RESIDE PROGRESS AS REFLECTED IN LONGER LIFE SPANS IS STEADY AMONG THE MAJORITY WHO SHOW PRUDENCE IN HOW THEY LIVE THE DEPRESSING STATISTICS ARE CONCENTRATED AMONG THE WANTON AND THOSE TRAPPED IN PROXIMITY TO THEM INCLUDING THEIR CHILDREN THIS MAY SOUND HEARTLESS BUT IT IS EVER CLEARER THAT TO BORROW FROM A FAMILIAR AXIOM 20 OF THE PEOPLE HAVE 80 OF THE PROBLEMS AND THEY BRING MANY OF THEM ON THEMSELVES GUNPLAY ADDICTIONS BAD DIETS DISREGARD FOR BASIC PROPHYLAXIS IT TAKES REAL ABERRANCE TO PUT ONESELF IN HARM'S WAY IN THESE HYGIENIC TIMES ONCE THE BEHAVIORAL ESSENCE OF THE RISK PROBLEM IS UNDERSTOOD A STRATEGY FOR IMPROVING SAFETY EMERGES THIS IS IMPORTANT FOR US BUSINESS BECAUSE IT STANDS TO BE SPARED ENORMOUS COSTS IN IDIOTPROOFING SOCIETY IF THE RESPONSIBILITY FOR MOST HAZARDS IS APPROPRIATELY ASSIGNED TO WILLFULNESS IF A SECTOR OF THE POPULATION PERSISTS IN ENDANGERING ITSELF AND SOMETIMES OTHERS THEN IT MAKES MORE SENSE TO TRY TO ISOLATE OR CORRECT THE OUTLIERS THAN TO MAKE THE WORLD A GIANT PADDED CELL AT THE SAME TIME IT SHOULD BE ACKNOWLEDGED THAT SOME GENERAL MEASURES HAVE SHOWN RESULTS ENOUGH TO JUSTIFY TO ALL BUT THE MOST ARDENT INDIVIDUALISTS THE COST IN DOLLARS AND LOST LIBERTY HELMET LAWS FOR CYCLISTS ARE AN EXAMPLE THE TRICK FOR POLICYMAKERS IS NOT TO OVERREACH BY IMPOSING MAJOR BURDENS ON ALL FOR THE SAKE OF PRECIOUS FEW LIVES GUN CONTROL THE ACCIDENTAL DEATHRATE FROM FIREARMS HAS DROPPED BY TWOTHIRDS SINCE 1967 SUGGESTING THAT TODAY'S PROBLEM LIES WITH THE INTENT OF THE USERS CONSIDER THE CASE OF AUTO SAFETY A MASS AWARENESS EFFORT HAS PAID DIVIDENDS PARTICULARLY WHEN AIMED AT PERILOUS PRACTICES SINCE ABOUT 1980 WHEN THE GROUP MOTHERS AGAINST DRUNK DRIVING WAS FORMED PUBLIC POLICY AND SOCIAL PRESSURE HAS BEEN GALVANIZED TO ENCOURAGE TEMPERANCE THE LATEST FIGURES FROM THE DEPARTMENT OF TRANSPORTATION SHOW ALCOHOLRELATED FATALITIES WERE DOWN 20 IN TWO YEARS OVER THE DECADE ENDING IN 1992 THESE DEATHS DECLINED TO 17699 FROM 25165 MOST OF THESE VICTIMS ARE DRUNK THEMSELVES ACCORDING TO ONE CONSULTANT BUT THE FALLOFF IS STILL HEARTENING THERE'S NO DENYING THE CORRELATION BOTH ALCOHOL CONSUMPTION AND TRAFFIC MAYHEM ARE ON THE DECLINE THE NATIONAL INSTITUTE ON ALCOHOL ABUSE AND ALCOHOLISM REPORTS THAT IN 1991 DRINKING PER CAPITA FELL TO ITS LOWEST MARK SINCE 1965 PART OF THIS IS THE BABY BOOMERS AGING WITH HARD LIQUOR INTAKE AT NEARLY 1949 LEVELS AND MOTORVEHICLE DEATH RATES IN 1992 PER MILES DRIVEN WERE AN ASTOUNDING ONE FIFTH OF WHAT THEY WERE IN 1947 A WIDER NUMBER FOR ALL INJURY AUTO ACCIDENTS HAD ALSO BEEN DROPPING STEADILY UNTIL A SLIGHT UPTICK IN 1990 ODDLY THESE SAFETY GAINS HAVE TAKEN PLACE DURING A PERIOD IN WHICH AVERAGE SPEEDS ROSE MORE CARS WERE ON THE ROAD AND UNTIL LATELY AUTOS WERE GETTING SMALLER AND THUS USUALLY LESS CRASHWORTHY SOME PARTISANS MIGHT ALSO BE SURPRISED BY THE FACT THE PROGRESS CONTINUED AND IN MANY CASES ACCELERATED DURING THE REAGAN AND BUSH ADMINISTRATIONS WHEN REGULATION SUPPOSEDLY LAPSED WHAT ACTUALLY HAPPENED WAS THIS UNFOLDING FEDERAL AND STATE RULES DID MAKE US BUY SAFER VEHICLES AND SECURE OURSELVES BETTER INSIDE OF THEM AMERICANS BEGAN TO INSIST ON SAFETY FEATURES BEYOND THOSE REQUIRED BY LAW TOUGHENED US MILEAGE REQUIREMENTS UNDID SOME OF THIS BY FAVORING LIGHTER CARS MEANWHILE SIGNIFICANTLY THE ROADS WERE REDESIGNED TO BE A LOT LESS DANGEROUS AND MOST IMPORTANT BOOZE WAS STIGMATIZED ENFORCEMENT WAS STEPPED UP WITH SPECIAL AIM TAKEN AT YOUTHS MANDATED MODERATION PAYS OFF AT LEAST DOWN TO A 10 BLOODALCOHOL CUTOFF OR A BIT LOWER AS MANY STATES ARE GOING THREE DRINKS AN HOUR EQUALS 10 FOR MOST MEN AT SOME POINT AND PROBABLY SOON THE RETURNS FROM THIS CAMPAIGN WILL DIMINISH SOME STATES ARE TOYING WITH REDUCING MOTORISTS' LEGAL THRESHOLDS TO TRACE LEVELS OF ALCOHOL MAYBE THAT WOULD WORK WITH MINORS WHO AREN'T SUPPOSED TO BE DRINKING ANYWAY THOUGH ACADEMICS SUGGESTS A STIFF BEER TAX WOULD BE THEIR MOST EFFECTIVE DETERRENT BUT THE CORE PROBLEM IS THE NEARLY 20 MILLION IN THE US WHO AREN'T ABLE TO HANDLE THEIR LIQUOR LIKE THOSE WHO FLOUT CAUTION IN MANY OTHER ASPECTS OF LIFE THE PROBLEM DRINKER IS WHAT THE SAFETY SNAG INCREASINGLY BOILS DOWN TO THIS WILL NOT STOP WASHINGTON FROM CRANKING IN COSTLY NEW CRASHSUSTAINING HARDWARE REQUIREMENTS FROM AIR BAGS TO SIDE REINFORCEMENTS TO EXTREME BUMPER PROTECTION AS NOTED MUCH OF THE BUYING PUBLIC IS NOW AHEAD OF THE REGULATORS IN THIS REGARD BUT ONE EFFECT IS TO DRIVE UP COSTS OF NEW VEHICLES AND TO LEAVE THOSE OF MODEST MEANS OFTEN THE YOUNG WHOM IT MAKES THE MOST SENSE TO PROTECT WITH NO CHOICE BUT TO SETTLE FOR A LESS SAFE USED CAR IN THE END WEALTH MAY BE THE ANSWER TO ALL BUT THE MOST STUBBORN THAT IS TO SAY HUMAN BARRIERS TO RISK REDUCTION THAT WAS THE BASIC POINT MADE BY THE LATE AARON WILDAVSKY OF THE UNIVERSITY OF CALIFORNIA IN HIS 1988 BOOK SEARCHING FOR SAFETY AND IS SUPPORTED BY THE FACT THAT THE GAINS REPORTED BY THE NATIONAL SAFETY COUNCIL HAVE BEEN SEEN THROUGHOUT THE DEVELOPED WORLD BUT AS WILDAVSKY SPENT MOST OF HIS PAGES DEMONSTRATING IT IS POSSIBLE TO SQUANDER INVESTMENTS IN SAFETY OR ACTUALLY TO RETARD THE ADVANCE BY ILLCONSIDERED ATTEMPTS TO STAMP OUT RISK OFTEN AS NOT THESE STEM FROM THE NERVOUS TEMPER OF THE TIMES AS EXPLOITED BY QUACKS ZEALOTS AND TORT LAWYERS A PRIME EXAMPLE WOULD BE WORRIES ABOUT THE INTEGRITY OF THE FOOD SUPPLY WHICH IS LIKELY AS BENIGN AS IT'S EVER BEEN THE BEST THING WE COULD DO WITH FRESH PRODUCE IS TO KEEP IT CHEAP ENOUGH SO THAT POORER PEOPLE COULD BUY IT ALONG THOSE SAME LINES THINK OF THE BOON TO US SAFETY IF THE POOR AND INNOCENT COULD AFFORD TO MOVE AWAY FROM THE HUMAN PREDATORS THAT SURROUND THEM FOR THE REST OF US IN THE WORKPLACE ON THE ROAD AND AT HOME DANGER IS LESS TODAY THAN AT ANY POINT SINCE RECORDS WERE KEPT WE HAVE BOUGHT THAT SECURITY WITH SAFEGUARDS AND SENSE CHASING THE WRONG KINDS OF RISKS WILL HARDLY EXPAND THE COMFORT ZONE 9312140095 931214 HOME WORK SOME THRIVE BUT MANY WILT WORKING AT HOME BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN BRIAN LEAGUE'S EMPLOYER OFFERED HIM A CHANCE TO WORK AT HOME HE SNAPPED IT UP A PLANNER FOR THE CITY OF LOS ANGELES HE THOUGHT IT WOULD BE NICE HE SAYS TO WORK IN A QUIET PLACE AND GO JOGGING ON BREAKS INSTEAD HE WOUND UP TALKING TO HIS DOG I MISSED INTERACTING WITH MY COLLEAGUES I FOUND MYSELF WALKING AROUND MY EMPTY HOUSE ASKING AMOS HELP ME WITH THIS' HIS AIREDALE TERRIER PROVED A POOR SOURCE OF INSPIRATION AND HE SOON QUIT WORKING AT HOME IT'S NOT FOR EVERYBODY HE SAYS IF I WERE A SUPERVISOR YOU'D HAVE A TOUGH TIME CONVINCING ME OF ITS MERITS COMPANY EMPLOYEES WORKING AT HOME AT LEAST PART TIME ROSE 15 LAST YEAR TO 76 MILLION SAYS LINK RESOURCES A NEW YORK RESEARCH CONCERN MORE WOULD LIKE TO JOIN THE TREND WITH 20 TO 40 OF EMPLOYEES SURVEYED BY RODGERS & ASSOCIATES A UNIT OF WORK/FAMILY DIRECTIONS INC SAYING THEY SEE TELECOMMUTING AS A DESIRABLE OPTION BUT AS THEIR NUMBERS GROW SOME WHO WORK AT HOME FIND IT DOESN'T WORK FOR THEM IT CAN FOSTER A SENSE OF ISOLATION STAGNATION FAMILY PROBLEMS AND EVEN COMPULSIVE OVERWORK AND WHILE SOME OF THE SKILLS REQUIRED TO SUCCEED ARE OBVIOUS AN ABILITY TO WORK INDEPENDENTLY AND A JOB THAT CAN BE MOVED INTO THE HOME OTHERS ARE HARDER TO MEASURE AN ABILITY TO SOLVE PROBLEMS ALONE AND NURTURE CLIENT AND COWORKER RELATIONS FROM AFAR FOR INSTANCE ARE CRUCIAL TELECOMMUTING WORKSHOPS TYPICALLY DRAW A ROOMFUL OF FOLKS WHO ENVISION ALL THE GOOD SIDES NOT HAVING TO SHAVE AND PUT ON MAKEUP OR GO THROUGH TRAFFIC AND SITTING IN THEIR BLUEJEANS ALL DAY SAYS GIL GORDON A MONMOUTH JUNCTION NJ CONSULTANT WHAT THEY DON'T ASK HE SAYS IS CAN I MANAGE DEADLINES WHAT WILL IT BE LIKE TO BE AWAY FROM THE SOCIAL CONTEXT OF THE OFFICE FIVE DAYS A WEEK CAN I RENEGOTIATE THE RULES OF THE FAMILY SO MY SPOUSE DOESN'T COME HOME EVERY NIGHT EXPECTING ME TO HAVE A FOURCOURSE MEAL ON THE TABLE WHILE MOST PEOPLE WHO WORK AT HOME FOR LONG STRETCHES SAY THEY LIKE THE ARRANGEMENT ONETHIRD OF THE 280 PARTICIPANTS IN A RECENT ONEYEAR STUDY IN WASHINGTON'S PUGET SOUND REGION STOPPED WORKING AT HOME ABOUT 17 SAID THEY LACKED EQUIPMENT OR OTHER SUPPORT 15 CITED PROBLEMS BACK AT THE OFFICE AND 8 SAID THEY SIMPLY DIDN'T LIKE IT MANY ARE BOTHERED BY A SENSE OF ISOLATION MR LEAGUE FOUND IT DIFFICULT TO EXCHANGE IDEAS BY PHONE ON A CRUCIAL UPDATE OF A MAJOR CITY PLAN PERSONALLY I'M NOT COMFORTABLE BEING CREATIVE ON THE PHONE HE SAYS JUST BY WATCHING PEOPLE'S FACES YOU CAN TELL WHETHER AN IDEA IS IN LINE OR NOT SOME WORRY ABOUT LOSING TOUCH ONE PARTICIPANT IN THE PUGET SOUND PROJECT AN ACCOUNTING MANAGER FOR HEWLETTPACKARD CO TOLD RESEARCHERS HOW TORN SHE FELT THAT SHE DIDN'T FEEL SHE WAS DOING AS GOOD A JOB FOR HER EMPLOYEES BECAUSE SHE WASN'T IN THE OFFICE ALL THE TIME NEITHER HER EMPLOYEES NOR HER MANAGER HAD ANY COMPLAINTS BUT HER OWN PERCEPTION WAS THAT SHE WASN'T AVAILABLE ENOUGH SAYS LYNN NIXON A HEWLETTPACKARD COMMUNICATIONS AND TRAINING MANAGER OTHERS SIMPLY MISS THEIR FRIENDS JULIE ROHRER WHO WORKS FULL TIME FROM HER HOME AS A TRANSCRIPTIONIST FOR A MADISON WIS HOSPITAL SAYS EVERY DAY IS THE SAME YOU PUT IN YOUR EIGHT HOURS AND THERE ISN'T ANYBODY TO TALK TO AND YOU MISS WHAT'S GOING ON IN THE OUTSIDE WORLD YOU FEEL YOU'RE IN YOUR HOUSE CONSTANTLY HOME ALONE WITH THEIR WORK SOME TELECOMMUTERS EXPERIENCE AN INCREASED SENSE OF PRESSURE ACCORDING TO A REPORT FOR THE SMALL BUSINESS ADMINISTRATION BY JOANNE H PRATT ASSOCIATES A DALLAS CONSULTANT IN THE PUGET SOUND PROJECT SOME EMPLOYEES FOUND THEMSELVES WORKING LONGER HOURS INTO THE EVENING AND FORGETTING TO TAKE BREAKS I KEEP THINKING I WILL JUST DO THIS ONE MORE THING' YOU KNOW AND PRETTY SOON IT'S TIME FOR BED ONE WORKER TOLD RESEARCHERS SHE SAID SHE WAS SO AFRAID OF TAKING ADVANTAGE OF THE SITUATION THAT SHE OFTEN WENT INTO THE OFFICE AT NIGHT MOST MANAGERS EXPECT A TELECOMMUTER'S OUTPUT TO RISE COMPOUNDING THOSE ANXIETIES MEDICAL TRANSCRIPTIONISTS WHO ARE ALLOWED TO WORK AT HOME FOR THE UNIVERSITY OF WISCONSIN HOSPITALS & CLINICS ARE EXPECTED TO INCREASE THEIR KEYSTROKES EACH WEEK BY 10 I'M FINDING IT REAL HARD TO KEEP UP SAYS VICKIE ISON A TRANSCRIPTIONIST WHO STARTED WORKING FROM HER SUN PRAIRIE WIS HOME LAST SPRING BAD CHEMISTRY WITH A BOSS CAN BE ENOUGH TO SINK A WORKATHOME ARRANGEMENT ONE WOMAN A WRITER FOR A MIDWESTERN MEDICAL CONCERN GOT PERMISSION FROM HER BOSS TO WORK AT HOME TEMPORARILY BUT THE BOSS NEVER TOLD HIS INFORMATIONSERVICES MANAGER TO GIVE HER COMPUTER SUPPORT AT HOME AS A RESULT NOBODY WOULD SIT DOWN AND WALK ME THROUGH THE MECHANICS OF SENDING HER WORK TO THE OFFICE FORCING HER TO HIRE A CONSULTANT THE WOMAN SAYS HER BOSS SOON ASKED HER TO RETURN FULL TIME TO THE OFFICE FRUSTRATED SHE EVENTUALLY LEFT THE FIRM TELECOMMUTING IS NOT A CASE WHERE ABSENCE MAKES THE HEART GROW FONDER MR GORDON SAYS USUALLY A GOOD RELATIONSHIP GETS BETTER AND A WEAK ONE GETS WORSE CAREFUL SCREENING OF PROSPECTIVE TELECOMMUTERS CAN AVERT SOME PITFALLS U S WEST IS WORKING ON DETAILED SCREENING SURVEYS ON SEPARATE VERSIONS OF THE QUESTIONNAIRE EMPLOYEES AND BOSSES ARE ASKED TOUGH QUESTIONS ABOUT THE EMPLOYEE'S SELFDISCIPLINE NEED FOR SUPERVISION RELIABILITY AND COMPUTER LITERACY AND THE BOSS'S ABILITY TO SET GOALS ORGANIZE AND EVALUATE WORK AND COMMUNICATE FROM AFAR THEN THE TWO SIT DOWN TO SEE IF THEIR PERCEPTIONS OF EACH OTHER'S SKILLS MATCH SAYS JOHN SCOTT AREA MANAGER WORKSITE ALTERNATIVES FOR U S WEST ED KIRK BELL ATLANTIC CORP'S MANAGER OF TELECOMMUTING SAYS YOU CAN'T DECIDE WHO WILL SUCCEED BASED ON JOB TITLE TWO EMPLOYEES MAY HAVE THE SAME JOB AND OUTSTANDING PERFORMANCE RATINGS BUT ONE MAY PLAN EVERYTHING IN ADVANCE WHILE THE OTHER MAY DO IT OFF THE CUFF ONE MAY SCHEDULE CONFERENCE CALLS AHEAD OF TIME AND THE OTHER PREFER WALKING DOWN THE HALL EACH HAS HIS OWN STYLE OF GETTING THE WORK DONE BUT ONLY EACH WORKER AND HIS BOSS KNOWS WHETHER THEY CAN ACTUALLY SUCCEED AT HOME AND NOT EVEN THE MOST COMMITTED HOME EMPLOYEES CAN KEEP WORK FROM SPILLING INTO HOME LIFE THOUGH HELEN BEITZ A PRINCIPAL IN SAN FRANCISCO FOR CSC INDEX A MANAGEMENTCONSULTING FIRM PLANNED TO WORK AT HOME PART OF THE TIME WHILE HER DAUGHTER IS YOUNG SHE FINDS TWOYEAROLD MORGAN DEMANDS HER FULL ATTENTION EVEN THOUGH SHE HAS A FULLTIME NANNY IF I'M ON THE TELEPHONE MORGAN SEES THAT AS COMPETITION IT SEEMS TO BE A MAGNET SHE'S RIGHT THERE SCREAMING I THINK SHE ALMOST FEELS MORE NEGLECTED WHEN I'M HOME AND SHE CAN SEE ME BUT I CAN'T PAY ATTENTION MS BEITZ SAYS EVEN A LARGE HOUSE DOESN'T ALWAYS HELP WALTER BOGAARDT A COMMUNITY SERVICES ANALYST FOR LOS ANGELES COUNTY AND FATHER OF NINE FINDS THAT HIS CHILDREN SEEK HIM OUT EVEN WHEN HE RETREATS TO THE BEDROOM OF HIS HOME AND CLOSES THE DOOR YOU NEED TO DIVORCE YOURSELF FROM YOUR FAMILY AND THAT'S DIFFICULT IF YOU'RE RIGHT THERE HE SAYS FOR PEACE AND QUIET MR BOGAARDT SOMETIMES FLEES TO THE PUBLIC LIBRARY HAS LITTLE NEED FOR FACETOFACE CONTACT WITH COWORKERS OR CUSTOMERS CAN COMMUTE DIRECTLY FROM HOME TO CUSTOMERS HAS ACCESS TO QUIET OFFICE SPACE AT HOME FREE FROM INTERRUPTIONS HAS ACCESS AT HOME TO NEEDED EQUIPMENT IS A SELFSTARTER' AND ABLE TO WORK WITH LITTLE SUPERVISION PERFORMS TASKS THAT CAN BE DONE FROM HOME REPORTS TO A SUPERVISOR WHO MANAGES BY RESULTS NOT BY SURVEILLANCE OR TIME CLOCK WORKS FOR SOMEONE WHO TRUSTS HIM OR HER 9312140094 931214 12 DAYS OF CHRISTMAS COSTOFLIVING INCREASES FOR PIPERS JACK UP PRICE OF A TRUE LOVE'S GIFTS BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL THE THOUGHT NO DOUBT HAS FLASHED THROUGH THE MIND OF MANY A CHRISTMAS CAROLER WHAT IS A FRENCH HEN WHERE DO YOU GET EIGHT MAIDSAMILKING WHO CAN AFFORD THIS STUFF ANYWAY THE CLOSEST THING IN THIS COUNTRY TO THE FRENCH HEN IS THE SILKY CHICKEN MAIDS MAY BE FOUND AT A MAID SERVICE AND ANYONE WITH 72300 CAN KEEP HIS TRUE LOVE IN STYLE FOR THE TWELVE DAYS OF CHRISTMAS ACCORDING TO PNC BANK CORP SINCE 1984 THE PHILADELPHIA BANKING CONCERN HAS ISSUED AN INDEX DETAILING PRICES OF ITEMS AND PERFORMANCES CATALOGUED IN THE CAROL THE TWELVE DAYS OF CHRISTMAS THE COST OF BRINGING THE SONG TO LIFE INCHED UP 09 THIS YEAR FROM THE YEARAGO 71600 DUE TO HIGHER PRICES FOR PEAR TREES AND COSTOFLIVING INCREASES FOR THE 10 LEAPING LORDS 11 PIPING PIPERS AND 12 DRUMMING DRUMMERS THE PHILADELPHIA ZOO PROVIDES PRICE QUOTES ON THE FOWL ANIMAL COLLECTIONS MANAGER BETH BAHNER REPORTS THAT SEVEN TRUMPETER SWANS COST 7000 THE PRICIEST OF THE FEATHERED LOT PNC ECONOMIST REBEKAH FICKLING NOTES THAT AMID THE LITANY OF GIFT BIRDS APPEAR FIVE GOLD RINGS SHE BELIEVES THE VERSE WAS FIVE GOLDRINGED PHEASANTS UNTIL A MODERN WOMAN SAID I WANT FIVE GOLD RINGS I LIVE IN A TOWNHOUSE NOT A FARM GET REAL HUGH GEE CONSULTS WITH PRODUCTION AND THEATRICAL COMPANIES ON WAGES FOR DRUMMERS AND DANCING LADIES 200 EACH AND 150 EACH RESPECTIVELY THE LORDS TOO ARE HOMEGROWN WE CALLED THE HOUSE OF LORDS IN ENGLAND AND THEY SAID WE WOULD HAVE TO FLY THEM OVER TO CALIFORNIA MR GEE SAYS WE COULDN'T DO THAT BESIDES MOST OF THEM ARE VERY OLD 9312140093 931214 LETTERS TO THE EDITOR THE US AND GEN AIDID MEANING IN THE MADNESS YOUR DEC 3 EDITORIAL SURVIVING AMERICAN LOGIC WONDERED ALOUD HOW LEADING MIDDLE EAST FIGURES OF DIVERSE REPUTATION WOULD REGARD THE BIZARRE AND UNSEEMLY STORY THAT US MILITARY FORCES HAD TRANSPORTED SOMALI STRONGMAN MOHAMED FARRAH AIDID UNDER THEIR PROTECTION TO ADDIS ABABA FOR NEGOTIATIONS AMERICA'S NEW AFFECTION FOR AIDID LOGIC YOU SAY ALTHOUGH LAUGHABLE KEEPS GETTING PEOPLE KILLED ISRAEL BEWARE MY REACTIONS TO THIS NEWS STORY WERE SOMEWHAT DIFFERENT YES IT WAS SURPRISING TO SEE OUR FORCES SHELTERING AIDID IN LIGHT OF THE US AND UN BLOOD HIS MILITIAMEN HAVE SPILLED MY FIRST THOUGHT WAS UNBRIDLED ADMIRATION FOR THE PROFESSIONALISM OF US MILITARY FORCES WHO UNDOUBTEDLY SWALLOWED STRONG PERSONAL FEELINGS TO CARRY OUT ORDERS FROM THE CHAIN OF COMMAND WHAT A SUPERIOR EXAMPLE TO OTHERS MY SECOND REACTION WAS ADMIRATION THAT THE CLINTON ADMINISTRATION HAD BRAVED PREDICTABLE CRITICISMS SUCH AS YOURS TO GIVE POLITICAL NEGOTIATIONS EVERY CHANCE OF SUCCESS WILL IT WORK I DON'T KNOW BUT DOES ANYONE THINK A STABLE VIABLE LONGTERM ORDER IN SOMALIA CAN BE CREATED WITHOUT A POLITICAL NEGOTIATION AMONG THE MAIN CLANS THE UN IS INVESTIGATING THE KILLINGS OF ITS PEACEKEEPERS AND IN TIME AIDID'S CULPABILITY MAY WELL BE ESTABLISHED THE PLANE RIDE DOES NOT CHANGE THIS AS FOR MR RABIN I SHOULD THINK HE WOULD WELCOME THE SIGHT OF US TROOPS SERVING AS AIDID'S BODYGUARDS THIS PLACES HIM IN GOOD COMPANY AS ISRAEL COPES WITH THE NEW REALITY THAT ITS ARCH ENEMY ARAFAT IS NOW ITS MAIN ALLY AGAINST ALL WHO WOULD BLOCK PEACE MOST AMERICANS ARE HUMBLED BY ISRAEL'S ABILITY TO ACT WITH VISION DESPITE ALL THE PLO HAS DONE AGAINST IT UNLESS ONE HAS ADVANCED A COMPARABLE VISION TO RESOLVE THE CRISIS IN SOMALIA ONE OUGHT TO LEAVEN HIS OR HER CRITICISMS WITH A MEASURE OF HUMILITY 9312140092 931214 LEISURE & ARTS OPERA AIR WAGNER' THE VALKYRIES AEROBICIZE BY MARK SWED CHICAGO FOR MORE THAN A CENTURY NOW OPERA DIRECTORS HAVE BEEN CONTENDING WITH THE VALKYRIES THOSE EIGHT BREASTPLATED SISTERS OF BRUNNHILDE THE WARRIORS OF WAGNER'S DIE WALKURE HAVE LONG BEEN OPERA'S MOST FAMOUS LAUGHINGSTOCK BUT AUGUST EVERDING THE GERMAN DIRECTOR RESPONSIBLE FOR A NEW WALKURE THROUGH DEC 22 AT LYRIC OPERA OF CHICAGO AS THE SECOND INSTALLMENT OF THE RING HE IS PRODUCING FOR THE COMPANY OVER FOUR YEARS THINKS HE HAS FOUND A NOVEL WAY OUT OF THE LAUGH TRAP IN ORDER TO STAGE THE RIPROARING RIDE OF THE VALKYRIES MR EVERDING TURNED TO THE MOVIES SPECIFICALLY HE SAYS HE FOUND INSPIRATION IN SYLVESTER STALLONE'S ALPINE DAREDEVILTRY IN CLIFFHANGER AND IN THE SCENES OF HELICOPTER STRAFING OF VIETNAM IN APOCALYPSE NOW FOR HIM THEY BEST CAPTURE THE SHEER VISCERAL EXCITEMENT OF WAGNER'S MUSIC SURE ENOUGH MR EVERDING HAS WAGNER'S GODS DWELL HIGH UP IN SNOWY CRAGS AND HIS VALKYRIES LIGHT UP THE NIGHT SKY PLAYING CATCH WITH COMETS IN WHAT HAS BEEN DUBBED AIR WAGNER IN THE LOCAL PRESS MR EVERDING HAS HIS AEROBIC VALKYRIES BOUND AND SOMERSAULT HAPPILY ON TRAMPOLINES LOBBING MYLARWRAPPED BEANBAGS THESE ARE NOT THE SINGING VALKYRIES OF COURSE BUT TEENAGEGYMNAST SUPERNUMERARIES YET EVEN THE LESS AGILE SINGERS WOULD DO WELL TO TRADE THEIR STYLISH VALKYRIE BOOTS FOR HIGHTOPS AS THEY BREAK A FOOTBALLSTYLE HUDDLE GIVE EACH OTHER HIGHFIVES AND UNDERTAKE A CHORUSLINE ROUTINE AS WAGNERIAN GIMMICKS GO THIS IS NOT AN ENTIRELY INEFFECTIVE ONE IT IS PERFECTLY EASY TO IMAGINE THE RIDE OF THE VALKYRIES ESPECIALLY PLAYED AS PROPULSIVELY AS ZUBIN MEHTA CONDUCTS IT BEING PIPED INTO EXERCISE CLASSES DIE WALKURE IS FURTHERMORE A LONG OPERA AND IT IS ALSO NICE TO HEAR A FEW LAUGHS AS THE EVENING WEARS ON AND THIS OPENING OF THE THIRD ACT GOT A FEW OF THOSE ALONG WITH MUCH TITTERING BUT THERE ISN'T MUCH ELSE QUITE SO AMUSING IN THE REST OF THE FIVE HOURS HARD AS THIS WALKURE WORKS TO PLEASE AND IMPORTANT AS IT IS FOR THE COMPANY'S REPUTATION AS A HOME FOR INNOVATION THE PRODUCTION CLEARLY WANTS TO BE AS ACCESSIBLE AS THE METROPOLITAN OPERA'S POPULAR OLDFASHIONED RING WITH ITS NATURALISTIC SETTINGS AT THE SAME TIME IT ALSO DOESN'T WANT TO SEEM HOPELESSLY BEHIND THE TIMES WITH AT LEAST A WINK AT THE MORE FANCIFUL AND CONCEPTUAL RING PRODUCTIONS THAT HAVE BEEN THE STANDARD IN EUROPE FOR A COUPLE OF DECADES NOW IT ALSO WANTS HIGHPOWER STAR SINGING AND CONDUCTING ALONG WITH BELIEVABLE MUSIC DRAMA ALL OF THESE ELEMENTS ARE IN FACT THERE BUT THEY DON'T FIT TOGETHER WITH THE RESULT THAT ONE IS ALWAYS REMINDED OF WHAT IS MISSING EVA MARTON PERHAPS THE LEADING BRUNNHILDE OF OUR TIME IN TERMS OF SHEER VOCAL HEFT MAKES A PROPER BIG NOISE BUT HOW CLUMSY SHE LOOKS IN THE GLAMOROUS COSTUME JOHN CONKLIN HAS DRESSED HER IN HOW OUTLANDISH SHE SEEMS WHEN SHE TRIES SO EAGERLY TO IMPERSONATE A DAUGHTER ROUGHHOUSING WITH WOTAN THE EVER STATELY JAMES MORRIS MS MARTON ALSO HAS THE MISFORTUNE TO EMBARK ON THIS ROMP JUST AFTER WOTAN'S ILLFATE TWINS SIEGLINDE AND SIEGMUND HAVE COMPLETED THEIR FIRSTACT LOVE SCENE IN A CONVINCINGLY REALISTIC IBSENESQUE MANNER THE STATELY DANISH SOPRANO TINA KIBERG IN TIGHTLY CLINGING ROBES AND THE IMPOSING SIEGFRIED JERUSALEM OFFER VERY SENSITIVE AND COMPELLING DRAMATIC INTERPRETATIONS WITH A LIEDLIKE ATTENTION TO SMALL MUSICAL AND TEXTUAL DETAIL AND A GENUINE EROTIC FRISSON BUT THEN HOW TINY THEY LATER SOUND AND INSIGNIFICANT THEY SEEM NEXT TO THE BELLOWING OF MS MARTON MARJANA LIPOVSEK A WONDERFULLY PEEVED FRICKA WOTAN'S OUTRAGED WIFE REMINDS US BY CONTRAST HOW PREDICTABLE MR MORRIS'S UBIQUITOUS WOTAN HAS BECOME RELIABLY SUNG AS IT IS EVEN MR MEHTA WHO SHOULD BE COMPLIMENTED FOR KEEPING CONTROL OVER HIS NATURAL TENDENCY TOWARD BOMBAST AND FOR GRACIOUSLY SUPPORTING HIS SINGERS IN A WAY VERY FEW WAGNER CONDUCTORS CAN MANAGE THESE DAYS SOMEHOW JUST SEEMS DULL INSTEAD FOR HIS PART MR CONKLIN APPARENTLY NEVER DID DECIDE WHAT STYLE OF DECOR HE WANTED SO HE CHOSE SEVERAL HIS SETS RUN THE GAMUT FROM HUNDING'S VERY SPACIOUS HUT WITH ITS CRAFTSMANLIKE GRANDEUR TO WOTAN'S MODERNE CASTLE TO THE WEIRD PYRAMIDAL SHACK WITH A PORTICO OF SHIELDS AND SPEARS AND A NEON PERIMETER WHERE WOTAN BANISHES BRUNNHILDE UNFORTUNATELY FOR LYRIC OPERA TELDEC HAS JUST RELEASED A SUPERB VIDEO OF DIE WALKURE FILMED AT LAST YEAR'S BAYREUTH FESTIVAL IN GERMANY AND FEATURING THE MUSIC DIRECTOR OF THE CHICAGO SYMPHONY DANIEL BARENBOIM HARRY KUPFER'S PRODUCTION WHICH WAS GREETED A FEW YEARS AGO WITH MUCH SKEPTICISM AS YET ANOTHER TRENDY UPDATING EVENTUALLY FOUND ITS FOCUS IN THIS ITS FINAL APPEARANCE CERTAINLY MR KUPFER'S FUTURISTIC LASER BEAMS ARE A STEP AHEAD OF MR EVERDING'S DATED NEON BUT THE REAL VIRTUE OF THIS PERFORMANCE IS ITS LASERBEAM FOCUS ON THE DRAMA THE ACTING IS EXTRAORDINARY WHILE THE SINGERS ARE NOT AS VOCALLY STRONG AS THOSE WHO CAN BE HEARD IN CHICAGO MR KUPFER AND MR BARENBOIM BOTH SEEM TO BE PROPERLY AWARE OF JUST WHAT THEY CAN DO WELL FOR INSTANCE MR BARENBOIM IS ESPECIALLY SHREWD IN THE WAY HE EXPANDS TEMPOS TO GIVE THE EFFECT OF A BREADTH THAT ISN'T IN ANN EVANS'S VOICE WHILE STILL ALLOWING MR KUPFER TO EXPLOIT HER GIRLISH NATURE JOHN TOMLINSON IS A REMARKABLY HUMAN WOTAN AND HIS SCENE WITH FRICKA LINDA FINNIE IS FOR ONCE GENUINELY AFFECTING AND NOT JUST ONE MORE EXAMPLE OF TIRESOME HECTORING INDEED THIS FILMED WALKURE WHICH HAS JUST BEEN RELEASED ALONG WITH THE FIRST RING OPERA DAS RHEINGOLD THE REMAINING TWO SIEGFRIED AND GOTTERDAEMMERUNG ARE SCHEDULED FOR SPRING IS A RIVETING DOCUMENT IN EVERY WAY IT SHOWS HOW WAGNER'S DRAMAS CAN CONTINUE TO BE RELEVANT AND REVEALING WITHOUT SACRIFICING MUSICAL MEANING UNLIKE MOST MINDLESS AMERICAN WAGNER PRODUCED BY THE DIRECTORS EUROPE LONG AGO TIRED OF 9312140091 931214 HEARD ON THE STREET WANG LABS' NEW STOCK ATTRACTS SOME FANS AS FIRM IS RESET AFTER BANKRUPTCY PROCEEDINGS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON WANG LABORATORIES HAS BEEN ONE OF THE GREAT INVESTMENT DISASTERS OF THE PAST DECADE A HIGHTECH GROWTH HIGHFLIER AT 4250 A SHARE IN 1982 IT SANK INTO BANKRUPTCY PROTECTION LAST YEAR AND ITS STOCK WAS DELISTED BUT THE LOWELL MASS COMPANY HAS RECENTLY EMERGED FROM BANKRUPTCY PROCEEDINGS WITH A DIFFERENT HIGHTECH FOCUS THAT'S GOT SOME SAVVY INVESTORS EXCITED THE NEW WANG LABS STOCK WILL SOON START TRADING ON THE NASDAQ STOCK MARKET POSSIBLY AS EARLY AS THIS WEEK ON A WHENISSUED BASIS ALREADY THE STOCK HAS RECEIVED EARLY BACKING FROM INVESTORS WITH A RECORD OF SUCCESS INCLUDING HEDGEFUND MANAGER MICHAEL STEINHARDT AND MONEY MANAGER LEON COOPERMAN THE FORMER HEAD OF RESEARCH AT GOLDMAN SACHS SOME MUTUAL FUNDS ARE ALSO CONSIDERING THE NEW WANG SHARES WHICH NOW CAN BE BOUGHT ON A WHENISSUED BASIS THIS IS AN OPPORTUNITY WHERE SMART INVESTORS CAN GET IN AND INVEST AT UNDERVALUED PRICES AS OPPOSED TO THE FULLY VALUED PRICES IN A STANDARD INITIAL PUBLIC OFFERING SAYS ARIEH COLL A FIDELITY INVESTMENTS FUND MANAGER THE BULLS LIKE WANG BECAUSE IT HAS EMERGED FROM BANKRUPTCY COURT PROTECTION WITH A FOCUS ON GROWTH BUSINESSES SUCH AS SOFTWARE THAT HELPS COMPANIES CONVERT DOCUMENTS INTO ELECTRONIC IMAGES IT ALSO HAS ONE OF THE HEALTHIEST BALANCE SHEETS IN THE COMPUTER INDUSTRY SOME 30 MILLION SHARES OF NEW WANG STOCK WILL SOON BE ISSUED TO WANG'S UNSECURED CREDITORS IN EXCHANGE FOR 811 MILLION OF DEBT INCLUDING OTHER SHARES AND STOCK RESERVED FOR EMPLOYEES THERE ARE LIKELY TO BE ABOUT 33 MILLION SHARES OUTSTANDING WARRANTS FOR AN ADDITIONAL 75 MILLION SHARES WILL BE DISTRIBUTED TO STOCKHOLDERS OF THE OLD WANG CLASS B AND CLASS C STOCK MANY OF THE DEBTHOLDERS ARE LIKELY TO SELL THEIR SHARES FOR SMALL INVESTORS LOOKING TO BUY WANG STOCK THAT COULD BE A PLUS UNLIKE WITH AN INITIAL PUBLIC OFFERING WHERE THE NEWLY ISSUED SHARES OFTEN SOAR IN PRICE BEFORE SMALL INVESTORS CAN BUY ANY THE PRICE OF WANG SHARES SHOULD BE RESTRAINED INITIALLY BECAUSE OF THE SELLING BY DEBTHOLDERS ALTHOUGH SOME MONEY MANAGERS ARE EAGERLY AWAITING THE NEW WANG STOCK MANY INVESTORS GAVE UP ON THE COMPANY A LONG TIME AGO WANG FEELS LIKE THE GIRL WHO COULDN'T GET A DATE TO THE PROM AND I WAS THE ONLY ANALYST WILLING TO INVITE HER SAYS RICK J MAKOUJY JR AN ANALYST WITH BDS SECURITIES IN NEW YORK BDS IS MAKING A MARKET IN THE WHENISSUED SHARES IN ADVANCE OF THE NASDAQ LISTING THE STOCK IS TRADING AT LESS THAN 15 MR MAKOUJY ESTIMATES THAT EARNINGS FOR THE 12 MONTHS ENDING SEPT 30 1994 BEFORE THE AMORTIZATION OF REORGANIZATION VALUE WILL COME IN AT 150 TO 2 A SHARE OUR CURRENT TARGET PRICE FOR THE SHARES IS IN THE 20S HE SAYS MR COOPERMAN WHO NOW RUNS NEW YORK'S OMEGA FUND SAYS WE OWN 10 OF THE COMPANY WE LIKE MANAGEMENT FINANCIALLY IT'S VERY CLEAN WITH ITS BALANCESHEET IMPROVEMENT WE THINK THERE'S A HUGE UPSIDE ANOTHER BIG HOLDER IS STEINHARDT MANAGEMENT WHICH HAS COMMITTED TO SPEND 60 MILLION TO BUY BOTH 11 EXCHANGEABLE PREFERRED STOCK AND 15 MILLION SHARES OF COMMON WHEN WANG COMPLETES ITS ISSUE OF NEW SHARES WANG WILL HAVE ABOUT 154 MILLION IN CASH AND 44 MILLION IN LONGTERM DEBT IN DETAILED FILINGS WITH THE BANKRUPTCY COURT IT HAS PROJECTED NET INCOME OF 24 MILLION ON REVENUE OF 941 MILLION FOR THE YEAR ENDING JUNE 30 1994 FOR THE QUARTER ENDED SEPT 30 OPERATING INCOME BEFORE GAINS ON CONVERSION OF DEBT TO EQUITY CAME IN AT 124 MILLION AHEAD OF THE COMPANY'S PROJECTIONS WANG HAS SOME 13 BILLION IN TAXLOSS CARRYFORWARDS AVAILABLE TO SHELTER ANY EARNINGS FROM TAXES THE BIGGEST RISK IN WANG IS THAT HALF THE COMPANY'S REVENUE COMES FROM SELLING AND MAINTAINING ITS PROPRIETARY VS COMPUTERS AND THAT REVENUE IS EXPECTED TO DECLINE 40 A YEAR OVER THE NEXT FEW YEARS THE COMPANY'S FUTURE LIES IN FASTGROWING AREAS SUCH AS SOFTWARE THAT HELPS COMPANIES CONVERT PAPER INTO ELECTRONIC IMAGES FOR PROCESSING WANG ALSO IS SELLING CONSULTING SERVICES TO HELP COMPANIES NETWORK THEIR PERSONAL COMPUTERS AS WELL AS ASSISTING ITS VS CUSTOMERS IN CONVERTING TO MORE FLEXIBLE COMPUTER SYSTEMS THAT WILL ACCOMMODATE OTHER COMPANIES' SOFTWARE FIDELITY'S MR COLL NOTES THERE ARE NEGATIVES MAINLY THE DECLINE IN HARDWARE REVENUE BUT MR COLL THINKS WANG HAS CONTROL OF ITS PAST PROBLEMS HE SAYS THE COMPANY IS REMINISCENT OF UNISYS WHICH HAS BEEN MOST SUCCESSFUL IN EXTRICATING ITSELF FROM ITS PROBLEMS WANG STILL HAS GREAT MARKET RECOGNITION EARLIER THIS YEAR WANG HAD TO WARN INVESTORS AGAINST BUYING ITS OLD VIRTUALLY WORTHLESS STOCK WHEN IT RAN UP ON GOOD NEWS THE OLD WANG CLASS B AND CLASS C STOCK HAS BEEN DELISTED BY THE AMERICAN STOCK EXCHANGE AND ISN'T TRADED NOW MR MAKOUJY OF BDS SECURITIES PREDICTS THE NEWLY ISSUED STOCK WILL PROVE POPULAR BECAUSE RETAIL INVESTORS HAVE REPEATEDLY SHOWN THEIR CONFIDENCE IN WANG BY BUYING THE OLD COMMON STOCK HOWEVER STUPID THAT WAS 9312140090 931214 ABREAST OF THE MARKET INDUSTRIALS REACH RECORD AGAIN AS RECOVERY SIGNS IGNITE CYCLICALS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE SAILED TO ITS SECOND STRAIGHT RECORD AS GROWING CONVICTION ABOUT THE ECONOMIC RECOVERY SPURRED INVESTORS TO LOAD UP ON CYCLICAL STOCKS AIDED BY A LATE BLAST OF COMPUTERGUIDED BUY PROGRAMS THE INDEX OF 30 BLUECHIP STOCKS ROCKETED 2376 POINTS TO 376443 ERASING THE PREVIOUS HIGH OF 374067 SET FRIDAY SPECIALIZED STOCK MARKET INDEXES ALSO SCALED NEW HEIGHTS THE DOW JONES TRANSPORTATION AVERAGE CLIMBED 812 POINTS TO 177195 BUT BROADER MARKET INDEXES LAGGED STANDARD & POOR'S 500STOCK INDEX ROSE JUST 177 POINTS TO 46570 AND THE NASDAQ COMPOSITE INDEX EASED 102 TO 75972 IN ANOTHER WORRYING SIGN THE NUMBER OF ADVANCING ISSUES TRAILED DECLINERS 991 TO 1056 VOLUME ON THE NEW YORK STOCK EXCHANGE ROSE TO 255 MILLION SHARES FROM 2446 MILLION SHARES FRIDAY INVESTORS ARE EXTRAPOLATING ON THE STRONG ECONOMIC NEWS AND THINKING IT'S GOING TO LEAD TO FAIRLY BROADBASED PRICING POWER SAYS JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT FIRST BOSTON INDEED PROPELLING THE DOW YESTERDAY WERE SHARP GAINS IN ECONOMICALLY SENSITIVE STOCKS AND A SURPRISE RALLY IN INTERNATIONAL BUSINESS MACHINES IBM SURGED 2 1/8 TO 57 3/8 AFTER THE BIG COMPUTER CONCERN SAID THAT IT HAD AGREED TO SELL ITS FEDERAL SYSTEMS CO DIVISION TO LORAL CORP FOR 158 BILLION IN CASH MEANWHILE ALUMINUM CO OF AMERICA SHOT UP 1 1/4 TO 73 5/8 MINNESOTA MINING & MANUFACTURING 2 7/8 TO 110 7/8 AND DUPONT 1 1/8 TO 48 3/8 AS INVESTORS FLOCKED TO OWN CYCLICAL STOCKS THE OPTIMISM ABOUT THE ECONOMY PROMPTED ONE MAJOR BROKERAGE FIRM TO RECOMMEND THAT ITS CLIENTS REALLOCATE THEIR ASSETS A MARSHALL ACUFF JR PORTFOLIO STRATEGIST AT SMITH BARNEY SHEARSON SAID THE FIRM'S INVESTMENT POLICY COMMITTEE YESTERDAY RECOMMENDED INVESTORS REDUCE THEIR BONDHOLDINGS TO 30 FROM 35 OF THEIR PORTFOLIO AND RAISE CASH TO 15 FROM 10 WHILE KEEPING 55 OF THEIR ASSETS IN STOCKS THE NOTION HERE WAS TO RAISE SOME CASH AT THIS TIME BECAUSE WE ARE IMPRESSED WITH THE STRENGTH IN THE ECONOMY AND WE BELIEVE THE STRENGTH WILL SPILL OVER INTO NEXT YEAR SAID MR ACUFF HE SAID THE FIRM BELIEVES THAT THE ACCELERATION IN THE ECONOMY WILL LIKELY SPUR THE FEDERAL RESERVE TO TIGHTEN MONETARY POLICY MAKING BONDS LESS ATTRACTIVE ANOTHER AREA WHICH MR ACUFF SAID IS LIKELY TO BE LESS ATTRACTIVE ARE FINANCIAL AND UTILITY STOCKS WHICH TEND TO PERFORM POORLY RELATIVE TO THE REST OF THE MARKET WHEN THE ECONOMY IS GAINING STEAM MR ACUFF SAID THE FIRM'S INVESTMENTPOLICY COMMITTEE ADVISED INVESTORS TO UNDERWEIGHT THESE AREAS AND SNAP UP CAPITALGOODS STOCKS INSTEAD CIRCUIT CITY STORES DROPPED 1 3/4 TO 21 1/4 THE RICHMOND VA ELECTRONICS AND APPLIANCE RETAILER REPORTED THIRDQUARTER NET INCOME OF 20 CENTS A SHARE UP FROM 17 CENTS LAST YEAR BUT JUST BELOW THE 21 CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM AMERICAN DEPOSITARY RECEIPTS OF CHINESE COMPANIES SURGED CHINA TIRE GAINED 2 1/8 TO 24 1/2 BRILLIANCE CHINA ROSE 1 3/4 TO 19 3/8 EK CHOR CHINA MOTORCYCLE GAINED 2 TO 34 1/2 AND SHANGHAI PETROCHEMICAL LEAPT 5 1/4 TO 48 1/8 IN HONG KONG THE HANG SENG INDEX CLOSED AT A RECORD HIGH FOR A FIFTH STRAIGHT SESSION PRECIOUSMETALS PRODUCERS JUMPED ALONG WITH THE PRICE OF GOLD AMERICAN BARRICK RALLIED 1/2 TO 28 3/8 HOMESTAKE MINING INCREASED 7/8 TO 22 5/8 AND NEWMONT MINING GAINED 7/8 TO 57 3/4 ON THE AMERICAN STOCK EXCHANGE PEGASUS GOLD ADDED 5/8 TO 22 7/8 GOLD FOR FEBRUARY DELIVERY ROSE 370 TO 38860 AN OUNCE IN NEW YORK SOME PETROLEUMRELATED ISSUES THOUGH FELL AS CRUDE OIL FUTURES RETREATED BELOW THE 15 A BARREL LEVEL THAT WAS BROACHED FRIDAY TEXACO LOST 1/2 TO 63 7/8 AND SCHLUMBERGER DECLINED 7/8 TO 58 7/8 ATLANTIC RICHFIELD THOUGH JUMPED 1 1/4 TO 104 1/4 US SURGICAL CLIMBED 2 1/8 TO 23 AFTER SMITH BARNEY SHEARSON ANALYST ROBERT GOLDMAN RAISED HIS INVESTMENT RATING ON THE NORWALK CONN MEDICALPRODUCTS COMPANY TO OUTPERFORM FROM SELL SOME RECENTLY BATTERED TECHNOLOGY STOCKS GAINED THOUGH INTEL ROSE 1 1/4 TO 57 1/2 AND APPLIED MATERIALS ADDED 3/4 TO 35 1/4 BOTH ON THE NASDAQ STOCK MARKET HEWLETTPACKARD INCREASED 7/8 TO 75 3/4 TEXAS INSTRUMENTS CLIMBED 3/8 TO 60 AND COMPAQ COMPUTER GAINED 1 1/8 TO 72 3/8 FEDERAL EXPRESS JUMPED 1 5/8 TO 70 AFTER THE MARKET CLOSED THE MEMPHIS TENN DOCUMENT AND PACKAGEDELIVERY COMPANY REPORTED SECONDQUARTER EARNINGS OF 107 A SHARE UP FROM 65 CENTS A YEAR AGO 9312140089 931214 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON JUDGING FROM THIS MOVIE MR EASTWOOD IS THE PERFECT DIRECTOR FOR MR COSTNER PLAYING A PRISONER ON THE LAM WITH A YOUNG BOY AS HOSTAGE MR COSTNER IS QUITE MOVING AND CREDIBLE AS A TROUBLED MAN WHO HAS ONLY A LOOSE LID CAPPING HIS TROUBLES MR EASTWOOD NO SLOUCH HIMSELF WHEN IT COMES TO PLAYING IMPASSIVE MEN IS THE AGING LAWMAN TRACKING THE CONVICT WITH THE WORLDWEARINESS HE'S BEEN PERFECTING IN HIS PAST FEW FILMS IT'S AN INTELLIGENT PICTURE WRITTEN BY SCREENWRITER JOHN LEE HANCOCK WITH AUTHENTIC FEELING FOR THE SMALL TOWNS AND BACK ROADS OF TEXAS DON'T WORRY IF YOU DIDN'T LIKE THE ORIGINAL ADDAMS FAMILY THIS SEQUEL HAS THE WITTY CAST AND SPECIAL EFFECTS OF ITS PREDECESSOR AND A PLOT WRITTEN BY PAUL RUDNICK WHO HAS A SECRET LIFE AS LIBBY GELMANWAXNER THE HILARIOUS MOVIE CRITIC FOR PREMIERE MAGAZINE MR RUDNICK WHO ONLY HAD A SMALL ROLE WRITING THE FIRST MOVIE WAS GIVEN FULL SCRIPT AUTHORITY THIS TIME WHAT A GOOD IDEA THE PLOT BRINGS A NEW BABY TO THE FAMILY AND A BUXOM BLOND NANNY NAMED DEBBIE JELINSKY TO TAKE CARE OF HIM THIS JEWISHAMERICAN PRINCESS TURNS OUT TO BE A WICKED WITCH IT'S ALL VERY FUNNY THIS STORY ABOUT A PUERTO RICAN HEROIN MAGNATE IN EAST HARLEM WHO DECIDES TO GO STRAIGHT ZIPS ALONG FAST ENOUGH SO YOU DON'T REALLY MIND THAT JUST ABOUT EVERYONE IN IT IS BEHAVING STUPIDLY FROM HONORBOUND CARLITO TO THE VARIOUS HOODS WHO BUZZ AROUND HIM WHAT REALLY DRAWS YOU IN IS MR DE PALMA'S AND HIS CINEMATOGRAPHER STEPHEN H BURUM'S AND HIS DESIGNER RICHARD SYLBERT'S SKILL AT BRINGING A BRASH NOISY WORLD TO THE SCREEN MOST SURPRISING IS MR PENN'S PERFORMANCE AS CARLITO'S LAWYER THE LITTLE GUY WANNABE HOOD WHO SNORTS HIS WAY TO OBLIVION AND DRAGS CARLITO WITH HIM THIS SHREWD AND BEAUTIFULLY MADE FILM EXAMINES THE SELFDEFEATING RITUALS OF THE ENGLISH ARISTOCRACY FROM THE POINT OF VIEW OF A BUTLER WHO HAS DEVOTED HIS LIFE TO PRESERVING THEM THE BUTLER MIGHT COME OFF AS AN IDIOT OR A BORE WITH HIS DOGGED DEVOTION TO DUTY AND HIS LACK OF IRONY BUT MR HOPKINS MAKES HIM ENORMOUSLY SYMPATHETIC WEIRDLY HONORABLE MS THOMPSON PLAYS HIS PROVOCATEUR THE HOUSEKEEPER WHO LIKES AN ORDERLY HOUSE TOO BUT WHO RECOGNIZES THAT SOME THINGS ARE MORE IMPORTANT THAN POLISHED SILVER THE TWO ACTORS GRANDLY PAIRED IN HOWARDS END PARRY COMFORTABLY AGAIN UNLIKE MOST FILMS THIS MOVIE ISN'T SO MUCH ABOUT WHAT HAPPENS TO WHOM AND HOW DESPITE THE MELODRAMATIC FRAME OF ITS STORY IT'S ABOUT A 19THCENTURY SCOTTISH WOMAN WHOSE FATHER HAS ARRANGED FOR HER TO MARRY A MAN IN NEW ZEALAND SHE TRAVELS TO THIS REMOTE PLACE WITH HER YOUNG DAUGHTER AND MEETS A MAN NOT HER BETROTHED WHO KNOWS SEXUAL REPRESSION WHEN HE SEES IT AND DECIDES TO SET HER FREE WITH ITS BREATHTAKING VISUAL STYLE AND CAREFUL ATTENTION TO SOUND AND MOVEMENT THE MOVIE PROVOKES CONTEMPLATION ABOUT THE WAYS PEOPLE COMMUNICATE THROUGH WORDS THROUGH MUSIC THROUGH SEX AND MOST SIGNIFICANTLY THROUGH TOUCH THIS CLEVER ADAPTATION OF JOHN GUARE'S BRILLIANTLY FUNNY PLAY GIVES A CINEMATIC THEATRICALITY TO THE WRITER'S SHREWD BITING OBSERVATIONS ON UPSCALE LIFE IN MANHATTAN AS WELL AS ART RACE CLASS AND FAMILY BOTH PLAY AND MOVIE WERE BASED ON A REALLIFE HUSTLE PULLED OFF BY A YOUNG BLACK MAN WHO CONNED WEALTHY NEW YORKERS INTO BELIEVING THAT HE WAS AN IVY LEAGUE CHUM OF THEIR CHILDREN'S AND SIDNEY POITIER'S SON MR GUARE'S SATIRE DOES JUSTICE TO THIS REALLIFE ABSURDITY 9312140088 931214 LEISURE & ARTS ON DISC CLASSICAL GEMS FOR YULE AND BEYOND BY BARRYMORE LAURENCE SCHERER MEMORIAL DAY DOESN'T SEEM MORE THAN A WEEK IN THE PAST YET THE CHRISTMAS GIFT HUNT IS UPON US AGAIN IN THE REALM OF CLASSICAL MUSIC THE SEASON OF GOOD CHEER AND GOURMANDIZING SPURS RECORD COMPANIES TO SEND FORTH THEIR CHOICEST YULETIDE OFFERINGS MESSIAHS CAROL SERVICES AND THE USUAL ARRAY OF CHRISTMAS ALBUMS BY EVERY KIND OF PERFORMER FROM OPERA SINGERS TO BANJO VIRTUOSOS EVEN THOUGH I HAVE BEEN A REALLY GOOD BOY ALL YEAR OR PERHAPS BECAUSE OF IT NOT MUCH OF THIS MATERIAL HAS CROSSED MY DESK THUS FAR NONETHELESS 1993 HAS HAD ITS SHARE OF FIRSTRATE YULEFREE RECORDINGS IDEAL FOR ENJOYMENT DURING THE SEASON AND THROUGHOUT THE COMING YEAR HERE'S THE CREAM ACCORDING TO ONE PALATE FIRST TCHAIKOVSKY'S SIX SYMPHONIES PLAYED BY THE ROYAL PHILHARMONIC ORCHESTRA UNDER THE BATON OF YURI TEMIRKANOV RCA VICTOR RED SEAL THIS IS THE ROMANTIC SCHOOL WITHOUT APOLOGIES AND MR TEMIRKANOV CONDUCTS RHETORICAL PERFORMANCES IN FLUENT RUSSIAN THE TEMPOS ARE BROAD EVERY TURN OF PHRASE POINTED AS IF IT WERE STAGE DECLAMATION THE CLIMAXES PACK A WALLOP THE SOUND IS CLEAR VIVID AND SPACIOUS MOREOVER THE PACKAGING OF THE SIXDISK SET IS MOST CONVENIENT ONE SYMPHONY TO A DISK PLUS ANOTHER ORCHESTRAL WORK TO ROUND IT OUT ROMEO & JULIET FRANCESCA DA RIMINI THE UNFAMILIAR FATUM ETC ALTHOUGH HE WAS NOTED FOR HIS CONDUCTING TCHAIKOVSKY DIDN'T REALLY LIVE INTO THE RECORDING AGE BUT HIS YOUNGER CONTEMPORARY EDWARD ELGAR DID EARLIER THIS YEAR I EXPRESSED MY PLEASURE OVER EMI'S COMPLETE SET OF ELGAR CONDUCTING ELGAR AND MORE RECENTLY I PRAISED RCA VICTOR'S LANDMARK SET OF THE COMPLETE RECORDINGS OF RACHMANINOFF CONDUCTING AND PLAYING HIS OWN WORKS AND MUSIC BY OTHER COMPOSERS THE PRAISE STILL STANDS BUT DON'T OVERLOOK RACHMANINOFF'S THIRD PIANO CONCERTO PLAYED BY EVGENY KISSIN AND THE BOSTON SYMPHONY ORCHESTRA UNDER SEIJI OZAWA RCA VICTOR WHICH ACTUALLY MAKES A BETTER CASE FOR THE WORK THAN THE COMPOSER'S OWN RECORDING THIS YEAR TWO IMPORTANT BEETHOVEN CYCLES HAVE FINALLY BEEN COMPLETED THE STRING QUARTETS BY THE TOKYO STRING QUARTET RCA VICTOR NINE CDS AND RICHARD GOODE'S TRAVERSAL OF THE PIANO SONATAS ELEKTRA/NONESUCH 10 CDS ADMITTEDLY I HAVE FOUND IT DIFFICULT TO CHOOSE BETWEEN THE BEETHOVEN SONATAS AS PLAYED BY MR GOODE AND BY THE IRISH PIANIST JOHN O'CONOR TELARC BOTH ARE ELOQUENT INTENSELY MUSICAL AND IN TERMS OF SHEER PIANO SOUND EXTREMELY BEAUTIFUL INDEED IT'S LIKE CHOOSING BETWEEN OLIVIER AND GIELGUD THEN THERE'S MR O'CONOR'S SCHUBERT RECITAL TELARC COMPRISING DISTINGUISHED RENDITIONS OF THE IMPROMPTUS OPP 90 AND 142 AND THE TWELVE WALTZES OP 18 TWO OF THIS YEAR'S MOST COMPELLING CHAMBERMUSIC DISKS PERFORMED BY MEMBERS OF THE GROUP FOR NEW MUSIC AND A VARIETY OF SOLOISTS LAUNCHED KOCH INTERNATIONAL'S TEREZIN MUSIC ANTHOLOGY BOTH GIDEON KLEIN AND VIKTOR ULLMANN WERE INMATES IN THAT NOTORIOUS PARADISE GHETTO AND WERE SUBSEQUENTLY SHIPPED TO AUSCHWITZ BUT NOT BEFORE LEAVING A POIGNANT LEGACY THE ENIGMATIC HARMONIC TENSION OF KLEIN'S STRING TRIO AND SHORT CHORAL PIECES AND THE IRONIC CONTRAPUNTAL LYRICISM OF ULLMANN'S THIRD STRING QUARTET AND PIANO SONATAS YIELD HAUNTING EXAMPLES OF POSTROMANTIC COMPOSITION AND WHEN YOU CONSIDER THAT THIS WAS MUSIC WRITTEN WHILE LOOKING DEATH IN THE FACE YOU CANNOT LISTEN WITHOUT BEING MOVED AMONG THE HORDE OF YOUNG VIOLINISTS CLAMBERING INTO THE LIMELIGHT TWO CAUGHT MY ATTENTION THIS YEAR ON DENON CHEEYUN PLAYS A FINE RECITAL OF SONATAS BY FAURE DEBUSSY AND SAINTSAENS HER TONE IS RICH AND ASSURED HER PHRASING ALTERNATINGLY SWEET AND VIRILE ON RCA ANNE AKIKO MEYERS PLAYS THE MENDELSSOHN CONCERTO YES THAT OLD THING AND DOES SO WITH FRESHNESS AND VERVE ABLY JOINED BY THE PHILHARMONIA ORCHESTRA UNDER ANDREW LITTON MUSIC DIRECTOR DESIGNATE OF THE DALLAS SYMPHONY ORCHESTRA INSTEAD OF THE USUAL BRUCH CONCERTO COUPLING HOWEVER MS MEYERS FILLS OUT THE DISK WITH POISED READINGS OF DVORAK'S ROMANCE IN F MINOR OP 11 VAUGHAN WILLIAMS'S THE LARK ASCENDING AND THE UBIQUITOUS MEDITATION FROM MASSENET'S THAIS FROM THE BAROQUE ERA TO THE 20TH CENTURY FRENCH OPERA ITSELF HAS ENJOYED A BANNER YEAR ON DISK AMONG THE BEST PERFORMANCES ARE LULLY'S BEWITCHING ARMIDE UNDER PHILIPPE HERREWEGHE'S DIRECTION AND RAMEAU'S SPLENDIDLY DRAMATIC CASTOR ET POLLUX PERFORMED BY LES ARTS FLORISSANTS UNDER WILLIAM CHRISTIE BOTH HARMONIA MUNDI BOTH SCORES ARE HIGH IN RHYTHMIC VERVE BOTH ARE WONDERFULLY PLAYED AND SUNG SAINTSAENS'S SAMSON ET DALILA EMI FEATURES PLACIDO DOMINGO AS THE STRONG MAN AND A SEDUCTIVE WALTRAUD MEIER AS HIS TOPLESS BARBER MYUNGWHUN CHUNG CONDUCTS THE FORCES OF THE OPERA BASTILLE WITH MASTERFUL ATTENTION TO ALL THE LUSH VIGOR OF THE SCORE POULENC'S DIALOGUE DES CARMELITES BY THE OPERA LYON UNDER KENT NAGANO VIRGIN CLASSICS IS A MAGNIFICENT ACHIEVEMENT THE CAST INCLUDES CATHERINE DUBOSC AND JOSE VAN DAM AS WELL AS EXQUISITE CAMEOS BY TWO GREAT FRENCH VETERANS MICHEL SENECHAL AND RITA GORR WHO SANG IN THE WORLD PREMIERE MR NAGANO AND THE ORCHESTRA PRODUCE TRANSPARENT INSTRUMENTAL TEXTURES AND IN THE FINALE MS DUBOSC'S WHITEHOT VOCAL PURITY ON THE SCAFFOLD WILL KNOCK YOU FOR A LOOP AMONG THE OTHER RECORDINGS OF 20THCENTURY WORKS THAT BELONG IN EVERY GOOD COLLECTION ARE TWO BRITTEN MASTERPIECES HIS POWERFUL HISTORICAL DRAMA GLORIANA FEATURING JOSEPHINE BAIRSTOW PHILIP LANGRIDGE AND MEMBERS OF THE WELSH NATIONAL OPERA UNDER SIR CHARLES MACKERRAS ARGO AND THE GLORIOUS COMEDY A MIDSUMMER NIGHT'S DREAM WITH JAMES BOWMAN LILLIAN WATSON AND THE CITY OF LONDON SINFONIA LED BY RICHARD HICKOX VIRGIN CLASSICS KURT WEILL'S LOST IN THE STARS MUSICMASTERS RECEIVES A DEEPLY FELT ACCOUNT BY JULIUS RUDEL WHO HAS KEPT THE WORK CLOSE TO HIS HEART EVER SINCE HE FIRST PRODUCED IT AT THE NEW YORK CITY OPERA IN 1958 IN THE ITALIAN REALM THREE RECORDINGS COME IMMEDIATELY TO MIND EDITA GRUBEROVA'S SUPERB LUCIA DI LAMMERMOOR CONDUCTED BY RICHARD BONYNGE TELDEC SIR GEORG SOLTI'S NEW STAB AT VERDI'S FALSTAFF WITH MR VAN DAM AS A MOST KNIGHTLY SIR JOHN AND A JEWELLIKE CAST LONDON AND CECILIA BARTOLI'S GORGEOUS LA CENERENTOLA ANOTHER GEM OF ENSEMBLE WORK METICULOUSLY CONDUCTED BY RICCARDO CHAILLY LONDON ON THE RUSSIAN FRONT PROKOFIEV'S WAR AND PEACE AND TCHAIKOVSKY'S PIQUE DAME ARE BOTH PART OF PHILIPS'S KIROV OPERA SERIES BOTH PERFORMANCES ARE CONDUCTED BY VALERY GERGIEV BOTH METICULOUSLY CAST BOTH UNBEATABLE IF REAL LIFE MIRRORED THE FINENESS OF THE MUSIC MAKING THERE THE CITY OF ST PETERSBURG WOULD BE A PARADISE FOR LIEDER LOVERS THERE IS ALSO AN EMBARRASSMENT OF RICHES AMONG THEM ANNE SOPHIE VON OTTER'S RECITAL OF GRIEG SONGS DEUTSCHE GRAMMOPHON AND THOMAS QUASTHOFF'S SCHUMANN RECITALREVEALING ANOTHER LUSCIOUS NEW BARITONE VOICE ON THE SCENE RCA VICTOR FINALLY TWO BEAUTIES FOR THOSE WHO CANNOT GREET CHRISTMAS WITHOUT AT LEAST SOMETHING SEASONAL GLORIA OFFERS A CHRISTMAS CONCERT OF VOCAL AND INSTRUMENTAL WORKS BY SCARLATTI CORELLI AND VIVALDI PERFORMED BY THE SILVERVOICED NANCY ARGENTA AND OTHER FINE SOLOISTS AND THE ENGLISH CONCERT AND CHOIR DIRECTED BY TREVOR PINNOCK ARCHIV AND OF COURSE THERE'S THE NUTCRACKER EMI PLAYED WITH FIRE AND ICE BY THE LONDON PHILHARMONIC UNDER MARISS JANSONS AND PACKAGED WITH A HANDSOMELY ILLUSTRATED STORYBOOK SO THAT THE WHOLE FAMILY CAN PARTAKE OF THE SUGARPLUMS 9312140087 931214 TECHNOLOGY SETTLEMENT PLAN BY NATIONAL MEDICAL IS SET BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SAID IT AGREED TO PAY 899 MILLION TO A GROUP OF 13 INSURANCE COMPANIES POTENTIALLY ENDING ALL MAJOR INSURANCE LITIGATION AGAINST THE EMBATTLED HOSPITAL COMPANY THE INSURERS INCLUDING TRAVELERS CORP'S TRAVELERS INSURANCE CO UNIT HARTFORD CONN PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ AND MASSACHUSETTS MUTUAL LIFE INSURANCE CO SPRINGFIELD MASS HAD CHARGED THE COMPANY WITH FILING 552 MILLION IN FRAUDULENT PSYCHIATRIC CLAIMS NATIONAL MEDICAL RECENTLY AGREED TO PAY AS MUCH AS 125 MILLION TO SETTLE TWO OTHER SIMILAR INSURANCE LAWSUITS SEPARATELY SENIOR VICE PRESIDENT CHRISTI SULZBACH SAID IN AN INTERVIEW THAT THE COMPANY HAS MADE SIGNIFICANT PROGRESS IN ITS CONTINUING REGULAR SETTLEMENT TALKS WITH THE JUSTICE DEPARTMENT THE STAGE IS CLEARLY SET FOR A RESOLUTION WITH JUSTICE SHE SAID THE GOVERNMENT'S TWOYEAR INVESTIGATION OF THE COMPANY ATTRACTED NATIONAL ATTENTION LAST SUMMER WHEN MORE THAN 600 FEDERAL BUREAU OF INVESTIGATION AND OTHER AGENTS RAIDED MORE THAN 20 NATIONAL MEDICAL FACILITIES ACROSS THE COUNTRY THE AGENCY HAS SAID IT IS INVESTIGATING THE COMPANY FOR SUSPECTED CRIMINAL MISCONDUCT THE GOVERNMENT PROBE NOW LOOMS AS THE MOST SERIOUS THREAT FACING THE COMPANY ANALYSTS HAVE BEEN RELUCTANT TO FORECAST THE OUTCOME BUT A HANDFUL WHO ARE URGING THE PURCHASE OF NATIONAL MEDICAL STOCK RECENTLY HAVE GONE OUT ON A LIMB WITH PUBLISHED PROJECTIONS OF SETTLEMENT COSTS INCLUDING ANY FINES IT'S JUST A GUESS SAID FIRST ALBANY CORP ANALYST ANDREW FEINMAN OF HIS 200 MILLION FIGURE A SMITH BARNEY SHEARSON ANALYST IS USING A 300 MILLION NUMBER WE DON'T FEEL THERE IS A BASIS TO ESTIMATE ANY SETTLEMENT AMOUNTS A NATIONAL MEDICAL SPOKESWOMAN SAID INVESTORS WERE CHEERED BY THE INSURANCE PACT PUSHING NATIONAL MEDICAL SHARES TO A 52WEEK HIGH OF 13625 UP 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY REFLECTING A STRING OF POSITIVE ANNOUNCEMENTS THE SHARES HAVE MOVED UP SMARTLY IN RECENT WEEKS ON AUG 27 THE DAY AFTER THE FBI RAID THE SHARES PLUMMETED 30 TO 775 THE INSURANCE LITIGATION FILED IN JULY 1992 WAS A UNIQUE INITIATIVE SAID THOMAS W BRUNNER THE INSURERS' PRINCIPAL ATTORNEY NEVER BEFORE HAD A LARGE GROUP OF INSURERS JOINED TOGETHER TO CHALLENGE SUSPECTED FRAUD AND ABUSE IN COURT THE WASHINGTON SUIT WAS LATER FOLLOWED BY THE TWO SIMILAR ACTIONS THAT WERE SETTLED IN SEPTEMBER THE WASHINGTON CASE WAS UNUSUALLY HARD FOUGHT AND CONTENTIOUS NATIONAL MEDICAL HAD EVEN SOUGHT A COURT ORDER TO BAR PLAINTIFFS' COUNSEL FROM PROVIDING CERTAIN LEGAL DOCUMENTS AND INTERVIEWS TO THE PRESS SETTLEMENT DISCUSSIONS APPARENTLY TURNED PRODUCTIVE AFTER THREE SENIOR INSURANCE COMPANY EXECUTIVES MET LAST MONTH WITH NATIONAL MEDICAL CHAIRMAN JEFFREY BARBAKOW THEY CUT THROUGH THE PROCEDURAL STUFF MR BRUNNER SAID THE SETTLEMENT SUPERSEDES MEDIATION RECENTLY ORDERED BY JUDGE HAROLD GREENE IN THE WASHINGTON FEDERAL COURT NATIONAL MEDICAL SAID IT EXPECTS THE SETTLEMENT TO BE PAID BY MARCH 15 THE FULL AMOUNT IS COVERED BY A 250 MILLION RESERVE FOR UNUSUAL LITIGATION THAT WAS SET UP IN OCTOBER THE PACT IS ANOTHER STEP IN THE COMMITMENT THAT I HAVE MADE TO RESOLVE THE UNUSUAL LITIGATION FACING THE COMPANY AND CLOSE THIS UNFORTUNATE CHAPTER IN ITS HISTORY MR BARBAKOW SAID IN A STATEMENT 9312140086 931214 TECHNOLOGY THERMO CARDIOSYSTEMS' HEART DEVICE GETS RECOMMENDATION OF FDA PANEL BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL A FOOD AND DRUG ADMINISTRATION PANEL RECOMMENDED THE APPROVAL OF THERMO CARDIOSYSTEMS INC'S HEARTASSIST DEVICE AS A BRIDGE FOR SEVERELY ILL CARDIAC PATIENTS AWAITING A HUMAN HEART TRANSPLANT AS MANY AS A QUARTER OF PATIENTS AWAITING HEART TRANSPLANTS EACH YEAR DIE BEFORE A DONOR HEART IS AVAILABLE PANEL MEMBERS SAID THIS DEVICE WILL SAVE LIVES SAID JULIE SWAIN A PANEL MEMBER BUT SHE SAID IT WON'T ALLEVIATE A CRITICAL SHORTAGE OF DONOR HEARTS DR SWAIN SAID THE DEVICE WAS THE FIRST IMPLANTABLE HEARTASSIST DEVICE TO BE BACKED FOR APPROVAL BY AN FDA EXPERT PANEL EARLIER ARTIFICIAL HEARTS SUCH AS THE JARVIK DEVICE WERE CONSIDERED EXPERIMENTAL AND DIDN'T UNDERGO THE SAME REVIEW PROCESS IN THE MEETING THERMO DISCLOSED A STUDY SHOWING THAT 71 OF PATIENTS MAINTAINED ON ITS HEARTMATE LEFTVENTRICLE ASSIST UNIT WERE HEALTHY TWO MONTHS AFTER A TRANSPLANT COMPARED WITH A 33 SUCCESS RATE FOR A CONTROL GROUP AND THE ONEYEAR SURVIVAL RATE AFTER A TRANSPLANT WAS 90 FOR THE STUDY GROUP AND 67 FOR THE CONTROL THE PANEL'S APPROVAL CAPS 27 YEARS OF WORK BY THERMO ENGINEERS WHO FIRST CONCEIVED OF AN IMPLANTABLE ARTIFICIAL HEART IN 1966 IN ITS FIRST INCARNATION THE DEVICE WAS TO BE FUELED BY A PLUTONIUM ISOTOPE AND POWERED BY A TINY STEAM ENGINE TODAY'S DESIGN RUNS ON COMPRESSED AIR AN ELECTRICALLY POWERED UNIT IS UNDER DEVELOPMENT THE FDA PANEL VOTING UNANIMOUSLY RESTRICTED THE DEVICE'S USE TO TRANSPLANT PATIENTS AND SAID IT MAY BE IMPLANTED ONLY IN TRANSPLANT CENTERS A SPOKESMAN FOR THE COMPANY WHICH IS BASED IN WOBURN MASS SAID THESE CONDITIONS HAD BEEN EXPECTED THERMO CARDIOSYSTEMS IS 55OWNED BY THERMEDICS INC AND THERMO ELECTRON CORP VICTOR POIRIER CHIEF EXECUTIVE OF THERMO CARDIOSYSTEMS AND THE HEART UNIT'S PRINCIPAL DESIGNER SAID THE COMPANY EXPECTS TO BEGIN TRIALS IN THE COMING YEAR TO ASSESS A NEW MODEL OF THE DEVICE FOR MUCH BROADER USE INCLUDING AS AN ALTERNATIVE TO OTHER THERAPIES AND LATER AS AN ALTERNATIVE TO THE TRANSPLANT OPERATION ITSELF DR SWAIN CHIEF OF CARDIOVASCULAR SURGERY AT THE UNIVERSITY OF NEVADA SCHOOL OF MEDICINE SAID THE THERMO DEVICE IS THE FIRST SUCH DEVICE THAT'S MADE THE LEAP FROM INVESTIGATIONAL USE TO A PANEL RECOMMENDATION FOR APPROVAL BUT THEY HAVE A FEW MORE HOOPS TO JUMP THROUGH BEFORE FINAL MARKETING APPROVAL IN CONTRAST TO EARLIER ARTIFICIAL HEART DEVICES WHICH HAD RELATIVELY LIMITED CLINICAL TRIALS SHE SAID THIS UNIT UNDERWENT BROADBASED TESTING AT MULTIPLE CENTERS WITH EXCELLENT RESULTS STILL DURING YESTERDAY'S FOURHOUR HEARING IN ROCKVILLE MD SHE WAS CRITICAL OF THE COMPANY'S DATA ANALYSIS AND PRESENTATION BASED ON CERTAIN DEFICIENCIES IN THE STUDY'S DESIGN BUT THOSE CONCERNS WEREN'T ENOUGH TO HOLD UP APPROVAL WHICH WAS RECOMMENDED BY ALL FIVE OF THE PANEL'S VOTING MEMBERS MR POIRIER SAID HE HOPED TO WIN FINAL FDA APPROVAL FOR THE UNIT WITHIN SIX MONTHS THE HEARTMATE DEVICE ISN'T A FULL ARTIFICIAL HEART BECAUSE IT IS DESIGNED TO REPLACE ONLY THE LEFT VENTRICLE BUT THE LEFT SIDE PUMPS MOST OF THE BLOOD IN THE BODY INCLUDING SENDING OXYGENRICH BLOOD TO THE BRAIN THIS DEVICE IS HALF A HEART REALLY DR SWAIN SAID BUT THAT SHE ADDED IS BETTER THAN NONE THERMO CARDIOSYSTEMS SHARES WHICH HAVE RISEN IN RECENT MONTHS IN ANTICIPATION OF A FAVORABLE REVIEW YESTERDAY SLIPPED 25 CENTS TO 18625 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING 9312140084 931214 INTERNATIONAL BRIEF MALAYSIAN AIRLINE SYSTEM BHD CENTRAL BANK IS EXPECTED TO REDUCE STAKE IN FIRM BANK NEGARA MALAYSIA'S CENTRAL BANK IS EXPECTED SOON TO DIVEST ITSELF OF A LARGE CHUNK OF ITS 42 HOLDING IN MALAYSIAN AIRLINE SYSTEM BHD AND SECURITIES ANALYSTS AND DEALERS ARE BETTING THE STAKE WILL GO TO MALAYSIAN HELICOPTER SERVICES BHD SPECULATION ABOUT SUCH A TRANSACTION CIRCULATING FOR SEVERAL MONTHS WAS BUTTRESSED ON FRIDAY WHEN TRADING IN MAS AND MHS SHARES WAS VOLUNTARILY SUSPENDED NEAR THE SESSION'S CLOSE ANALYSTS EXPECT THAT BANK NEGARA WHICH CURRENTLY OWNS 42 OF MAS INTENDS TO DIVEST ITSELF OF AS MUCH AS 32 OF THE CARRIER BY SWAPPING TWO OF ITS AIRLINE SHARES VALUED AT 8 RINGGITS 313 EACH FOR EVERY ONE NEW MHS SHARE VALUED AT 16 RINGGITS EACH UNDER THOSE TERMS THE TRANSACTION WOULD BE VALUED AT 179 BILLION RINGGITS 9312140082 931214 FEDERAL EXPRESS'S FOREIGN OPERATIONS SPARK PROFIT SURGE BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL EXPRESS CORP FUELED BY ITS FIRST PROFIT IN ITS INTERNATIONAL OPERATIONS REPORTED THAT FISCAL SECONDQUARTER EARNINGS JUMPED 69 NET INCOME FOR THE PERIOD ENDED NOV 30 TOTALED 597 MILLION OR 107 A SHARE COMPARED WITH 354 MILLION OR 65 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 8 TO 212 BILLION FROM 196 BILLION THE PROFIT FIGURES ARE THE BEST IN FIVE YEARS SAID A SPOKESMAN FOR THE EXPRESSDELIVERY CONCERN AND WE DON'T SEE ANY REASON WHY IT SHOULDN'T KEEP IMPROVING INDEED THE NUMBERS EXCEEDED THE EXPECTATIONS OF MOST ANALYSTS AT MORGAN STANLEY & CO KEVIN C MURPHY SAID THE RESULTS MARKED A SEA CHANGE IN THE WAY FEDERAL EXPRESS IS HANDLING ITSELF FOR THE FIRST TIME IN A DECADE HE SAID THERE ARE NO SELFINFLICTED WOUNDS AFTER PILING UP HUNDREDS OF MILLIONS OF DOLLARS IN LOSSES OVERSEAS IN RECENT YEARS FEDERAL EXPRESS REPORTED A SECONDQUARTER PROFIT ITS FIRST EVER OF 21 MILLION IN THE INTERNATIONAL SECTOR THAT COMPARED WITH A YEAREARLIER LOSS OF 378 MILLION INTERNATIONAL REVENUE CLIMBED 34 TO 5837 MILLION FROM 5643 MILLION THE COMPANY SAID CONTINUED GROWTH IN ITS INTERNATIONAL PRIORITY SERVICE WHERE REVENUE ROSE 14 TO MORE THAN 300 MILLION FROM A YEAR EARLIER WAS THE MAIN REASON FOR THE IMPROVED PERFORMANCE FEDERAL EXPRESS BASED IN MEMPHIS TENN SAID THAT SEASONAL CHANGES IN FOREIGN MARKETS WOULD LIKELY RESULT IN SOME UNPROFITABLE QUARTERS IN ITS INTERNATIONAL BUSINESS IN THE FUTURE BUT THE COMPANY'S GOAL IS TO REPORT AN ANNUAL PROFIT IN THAT SEGMENT BY THE END OF FISCAL 1995 SAID ALAN B GRAF JR CHIEF FINANCIAL OFFICER DOMESTICALLY THE COMPANY DIDN'T FARE AS WELL WHILE REVENUE INCREASED 10 TO 154 BILLION OPERATING EARNINGS SLIPPED ALMOST 2 TO 1476 MILLION FROM 1505 MILLION FEDERAL EXPRESS SAID THAT YIELD PER PACKAGE FELL MORE THAN 1 FROM THE YEAREARLIER QUARTER WHILE THE COMPANY'S AVERAGE COST PER PACKAGE REMAINED FLAT WITH THE ECONOMY STILL FEELING ITS WAY AND THE EXPRESSDELIVERY BUSINESS REMAINING HIGHLY COMPETITIVE ANY IMPROVEMENT IN PROFIT MARGINS WILL LIKELY COME FROM CUTTING COSTS RATHER THAN RAISING PRICES MR GRAF SAID SIGNIFICANT SAVINGS HE SAID SHOULD BE REALIZED FROM THE GRADUAL REPLACEMENT OF ITS AGING FLEET OF 727S WITH WIDEBODY AIRCRAFT THE FORMER HAVE A CAPACITY OF ABOUT 30000 POUNDS THE LATTER CAN CARRY MORE THAN TWICE THAT LOAD THERE'S ABSOLUTELY NO PRICING FLEXIBILITY IN OUR MARKETS SAID MR GRAF WHO SAID HE SEES NO EVIDENCE OF RIVAL UNITED PARCEL SERVICE OF AMERICA INC RAISING PRICES ANY TIME SOON WE HAVE TO REDUCE OUR AVERAGE COST PER TRANSACTION IT'S THAT SIMPLE FEDERAL EXPRESS RELEASED ITS SECONDQUARTER RESULTS AFTER THE STOCK MARKET CLOSED YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FEDERAL EXPRESS SHARES CLOSED AT 70 UP 1625 9312140081 931214 SMALL STOCK FOCUS STOCKS POSTED THIRD STRAIGHT DECLINE ON POOR SHOWING IN TRANSPORT GROUP BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK TRADING WAS THIN BUT SMALLCOMPANY STOCKS POSTED THEIR THIRDSTRAIGHT DECLINE PRESSURED BY WEAK INTERESTRATE SENSITIVE STOCKS AND A POOR PERFORMANCE IN THE TRANSPORTATION GROUP FALLING BOND PRICES DIDN'T HELP THE CAUSE TRADERS SAID THE LONG BOND FELL NEARLY A 1/2 POINT WITH ITS YIELD RISING TO 623 THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES FELL 058 POINT OR 023 TO END AT 25223 ON NASDAQ THE COMPOSITE INDEX FELL 102 POINTS OR 013 TO 75972 ITS SIXTHCONSECUTIVE SLIDE ADVANCING NASDAQ ISSUES TRAILED DECLINERS 1260 TO 1697 ON NASDAQ NATIONAL MARKET VOLUME OF 214546100 SHARES DOWN FROM 256181200 ON FRIDAY TOTAL VOLUME ALSO EASED TO 270006000 SHARES FROM 308249000 FRIDAY PATRICK DAVIS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS FUND SAYS SMALLER STOCKS ARE CAUGHT IN A CONTINUING TREND WHERE CYCLICAL STOCKS GENERATE MORE INVESTOR INTEREST PROBABLY BECAUSE OF THE RECENT UPBEAT ECONOMIC NEWS THE RUSSELL 2000 LIES 794 POINTS OR 314 FROM ITS RECORD WHILE THE NASDAQ COMPOSITE REMAINS 277 POINTS OR 351 FROM ITS RECORD HIGH IN THE BANK OTHER FINANCIAL AND INSURANCE GROUPS HORIZON BANK OF BELLINGHAM WASH WAS OFF 3/4 TO 15 3/4 BAY VIEW CAPITAL SAN MATEO CALIF LOST 3/4 TO 21 3/4 AND CITFED BANCORP DAYTON OHIO EASED 5/8 TO 24 1/8 AMONG TRANSPORT STOCKS MESA AIRLINES FARMINGTON NM EDGED 7/8 LOWER TO 18 7/8 AND ALASKA AIR GROUP SEATTLE RETREATED 1 1/4 TO 14 7/8 IN OTHER CORPORATE DEVELOPMENTS PROCYTE PLUNGED 4 OR 30 TO 10 THE COMPANY SAID THE FOOD AND DRUG ADMINISTRATION DIRECTED IT TO PLACE ON HOLD ITS PHASE III CLINICAL STUDIES OF INVESTIGATIONAL IAMIN A TOPICAL GEL BEING DEVELOPED TO TREAT FOOT ULCERS IN DIABETICS THE FDA ORDERED THE SUSPENSION FRIDAY IN ORDER TO INVESTIGATE THE DEATHS OF SEVEN PEOPLE PARTICIPATING IN THE STUDY IN A NEWS RELEASE PROCYTE OF KIRKLAND WASH SAID IT IS POSTPONING ITS PROPOSED STOCK OFFERING UNTIL THE MATTER IS RESOLVED ALKERMES CAMBRIDGE MASS FELL 7/8 TO 7 5/8 THE DEVELOPER OF THERAPEUTIC AND DIAGNOSTIC MEDICAL PRODUCTS SAID THE RESULTS OF A US PHASE I HUMAN CLINICAL TRIAL DEMONSTRATED THE SAFETY OF RMP7 IN ADULT PATIENTS WITH MALIGNANT GLIOMA A FORM OF BRAIN CANCER BUT POLYMEDICA INDUSTRIES JUMPED 1 1/4 TO 7 1/4 AFTER A POSITIVE EARNINGS OUTLOOK THE WOBURN MASS MEDICAL PRODUCTS MAKER SAID IT EXPECTS TO REPORT ITS FIRST FULL QUARTER OF PROFITABILITY FROM CONTINUING OPERATIONS FOR THE FISCAL THIRDQUARTER ENDING DEC 31 ANALYSTS HAD EXPECTED AN OPERATING LOSS OF 10 CENTS A SHARE A YEAR EARLIER POLYMEDICA REPORTED A LOSS OF 18 CENTS BE AEROSPACE WELLINGTON FLA FELL 2 1/8 TO 9 3/4 THE COMPANY SAID IT EXPECTS REVENUE AND EARNINGS TO BE 10 TO 15 BELOW EARLIER ESTIMATES FOR THE THIRDQUARTER ENDED NOV 30 BECAUSE OF UNANTICIPATED DIFFICULTIES ENCOUNTERED BY ITS INFLIGHT ENTERTAINMENT AND SEATING PRODUCTS DIVISIONS IN SHIPPING NEW PRODUCTS ACCORDING TO ZACKS INVESTMENT RESEARCH INC A SURVEY OF FIVE ANALYSTS PRODUCED A THIRDQUARTER MEAN ESTIMATE OF 20 CENTS A SHARE IN THE YEAREARLIER PERIOD BE POSTED NET INCOME OF 29 CENTS A SHARE CIRCUIT SYSTEMS ADDED 1 1/8 TO 6 1/2 THE ELK GROVE VILLAGE ILL MANUFACTURER OF CIRCUIT BOARDS REPORTED FISCAL SECONDQUARTER NET INCOME OF 23 CENTS A SHARE UP FROM THE 15 CENTS A SHARE RECORDED A YEAR EARLIER IRG TECHNOLOGIES A RICHARDSON TEXAS MICROCOMPUTER COMPANY PLUMMETED 1 1/8 TO 2 THE COMPANY REPORTED A FOURTHQUARTER LOSS OF 70 CENTS A SHARE ON MORE SHARES COMPARED WITH NET INCOME OF 13 CENTS A YEAR EARLIER ADDITIONALLY IRG SAID ITS GROSS MARGIN FELL TO 7 FOR THE LATEST FISCAL YEAR COMPARED WITH 126 FOR THE PRIOR YEAR IRG WILL RESTATE ITS THIRDQUARTER RESULTS WITH A CHARGE TO PRETAX INCOME OF ABOUT 15 MILLION NOT PREVIOUSLY RECORDED THE CHARGE IS ASSOCIATED WITH MARKETING AND PRODUCT ALLOWANCES TO ITS IDENTITY SYSTEMS TECHNOLOGY INC SUBSIDIARY'S MASSMERCHANT CUSTOMERS THE COMPANY HAD REPORTED NET INCOME OF 531000 OR NINE CENTS A SHARE FOR THE THIRDQUARTER NSA INTERNATIONAL FELL 1 1/2 TO 5 THE MEMPHIS TENN DESIGNER AND MAKER OF AIR FILTRATION SYSTEMS HAD A FISCAL SECONDQUARTER LOSS OF 18 CENTS A SHARE COMPARED WITH A PROFIT OF 15 CENTS A YEAR EARLIER NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 60 WHILE 49 ISSUES HIT NEW LOWS 9312140080 931214 BUSINESS BRIEF AMERICAN TELECASTING INC COMPANY SELLS 22 STAKE IN OFFERING BUYS CHOICE TV AMERICAN TELECASTING INC SAID IT SOLD A 22 STAKE IN THE COMPANY FOR 54 MILLION IN AN INITIAL PUBLIC OFFERING AND ACQUIRED ANOTHER PAYTELEVISION OPERATOR FOR 28 MILLION AMERICAN TELECASTING A COLORADO SPRINGS COLO OPERATOR OF WIRELESS CABLE TV SYSTEMS IN A NUMBER OF CITIES SOLD THREE MILLION SHARES AT 18 A SHARE THE LEAD UNDERWRITER WAS ALEX BROWN & SONS INC THE COMPANY SAID IT BOUGHT CHOICE TV GROUP SOUTH BEND IND WHICH OPERATES A WIRELESSCABLE SYSTEM IN ONE MARKET AND IS DEVELOPING SYSTEMS IN 10 OTHERS 9312140079 931214 GM'S BRAZIL UNIT AIMS TO OUTSELL VW BY 1995 DETROIT GENERAL MOTORS CORP'S BRAZILIAN OPERATION WANTS TO DETHRONE VOLKSWAGEN AG AS THE NO 1 SELLER IN SOUTH AMERICA'S LARGEST COUNTRY BY 1995 AND IS EXPANDING CAPACITY FOR THE FIGHT GM DO BRASIL PRESIDENT AND MANAGING DIRECTOR MARK HOGAN SAID THE PROSPECT OF A PITCHED BATTLE FOR MARKET SHARE IN BRAZIL HIGHLIGHTS THE IMPORTANCE LATIN AMERICA NOW HOLDS FOR GM AND VW AS WELL AS FORD MOTOR CO AND ITALY'S FIAT SPA THE FOUR COMPANIES BESET BY PLUNGING PROFITS IN EUROPE ARE SCRAMBLING TO RECOUP BY SHIFTING PRODUCTS AND MANUFACTURING TOWARD EMERGING ECONOMIES IN SOUTH AMERICA EASTERN EUROPE AND ASIA MR HOGAN IN AN INTERVIEW SAID GM DO BRASIL WHICH HAS ABOUT A 25 SHARE OF THE BRAZILIAN CAR MARKET PLANS TO START A PRODUCTION WITH THREE SHIFTS AT ITS TWO BRAZILIAN PLANTS TO BOOST CAPACITY BY 20 TO 300000 VEHICLES A YEAR MOST OF THE INCREASE IS TIED TO THE LAUNCH OF THE CORSA A NEW LOWPRICED SUBCOMPACT THAT GM WILL START SELLING IN FEBRUARY AGAINST VW'S AGED BEETLE AND GOL SUBCOMPACTS WE THINK WE CAN PICK UP A BIG CHUNK OF SHARE WITH THE CORSA AND SEVERAL MORE FORTHCOMING MODELS DESIGNED BY GM'S ADAM OPEL UNIT IN GERMANY MR HOGAN SAID 9312140078 931214 INTERNATIONAL BANK OF CHINA IS SIGNALING CHANGE WITH NEW PRESIDENT BEIJING BANK OF CHINA THE COUNTRY'S MAIN FOREIGNEXCHANGE BANK WILL SOON GET A NEW PRESIDENT AS PART OF CHINA'S EFFORTS TO BRING YOUNGER PROFESSIONAL MANAGEMENT TO ITS BANKING SECTOR BANK OFFICIALS SAY WANG XUEBING THE 41YEAROLD FORMER HEAD OF THE BANK'S NEW YORK BRANCH IS SET TO SUCCEED WANG DEYAN NO RELATION AT THE END OF THE YEAR OR EARLY NEXT YEAR THE OFFICIALS SAY WANG DEYAN 63 WHO HAS SERVED AS THE BANK'S PRESIDENT AND CHAIRMAN FOR ABOUT EIGHT YEARS AND HAS BEEN EXPECTED TO RETIRE FOR SOME TIME WILL BE MADE STANDING CHAIRMAN THE APPOINTMENT OF THE YOUNGER CAREER BANKER AND BUSINESSMAN IS PART OF CHINA'S TREND TO COMMERCIALIZE ITS BANKS ONE BANK OF CHINA OFFICIAL SAID NOW TOP MANAGEMENT MUST BE YOUNGER AND BANKERS BY TRADE NOT POLITICIANS HE ADDED THAT MR WANG COULD BRING A MORE INTERNATIONAL PERSPECTIVE TO THE BANK'S MANAGEMENT WANG XUEBING HAS BEEN SERVING AS A VICE PRESIDENT OF CHINA EVERBRIGHT HOLDINGS CO A HONG KONGBASED TRADING AND INVESTMENT COMPANY BACKED BY CHINA'S STATE COUNCIL FOR THE LAST FEW MONTHS 9312140077 931214 GM'S PLANT IN LORDSTOWN TO BUILD CARS FOR EXPORT GM REACHED AN AGREEMENT LAST MONTH UNDER WHICH TOYOTA MOTOR CORP WILL SELL ABOUT 20000 NORTH AMERICANMADE GM COMPACT CARS A YEAR UNDER THE TOYOTA NAME IN JAPAN THE CARS WILL BE SIMILAR TO THE 1995 JCAR MODELS GM WILL LAUNCH NEXT FALL TO REPLACE THE CURRENT CHEVROLET CAVALIER AND PONTIAC SUNBIRD COMPACTS BUILT AT LORDSTOWN THE LORDSTOWN PLANT GAINED NOTORIETY IN 1972 WHEN WORKERS WALKED OFF THE JOB TO PROTEST GM'S EFFORT TO SPEED UP PRODUCTION OF THE IMPORTFIGHTING VEGA SMALL CAR DOGGED BY BAD QUALITY THE VEGA FLOPPED A GM SPOKESWOMAN SAID YESTERDAY THAT THE PRODUCTION FOR EXPORT TO JAPAN WILL HELP THE PLANT RUN AT FULL CAPACITY BUT GM DIDN'T SAY WHETHER MORE JOBS ARE TIED TO THE PROGRAM GM ALSO WILL BUILD JCARS AT ITS LANSING MICH AUTO PLANT AS PART OF A STRATEGY OF DEVELOPING FLEXIBLE FACILITIES 9312140076 931214 FOREIGN EXCHANGE DOLLAR GAINS AGAINST MARK AMID SIGNS OF POSSIBLE RATE CUT BY THE BUNDESBANK BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE AGAINST THE MARK MONDAY AS SOME POOR GERMAN ECONOMIC DATA AND THE POSSIBILITY OF AN INTERESTRATE CUT BY THE BUNDESBANK UNDERMINED THE GERMAN CURRENCY BUT SALES BY JAPANESE EXPORTERS PUSHED DOWN THE DOLLAR AGAINST THE YEN IN QUIET RANGEBOUND TRADING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17085 MARKS UP FROM 16965 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10895 YEN OFF FROM 10920 YEN STERLING WAS TRADING AT 14895 DOWN FROM 14950 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10880 YEN AND AT 17067 MARKS IN A RELATIVELY THIN PREHOLIDAY MARKET TRADERS SEIZED ON A DISMAL REPORT ABOUT GERMAN RETAIL SALES AS AN EXCUSE TO DUMP THE MARK AGAINST MOST MAJOR CURRENCIES WESTERN GERMAN RETAIL SALES IN OCTOBER DROPPED 73 FROM A YEAR BEFORE COMPARED WITH MARKET EXPECTATIONS FOR A DECLINE OF 32 THE GERMAN RETAIL SALES WERE PRETTY BAD SAID DORIT RONNEN A TRADER AT BANK LEUMI TRUST CO IN NEW YORK THE DOLLAR JUST SHOT UP THE RESULT UNDERSCORED THE BLEAK ECONOMIC PICTURE FACING GERMANY DEALERS POINTED OUT MAKING RECENT INDICATIONS OF US ECONOMIC STRENGTH LOOK EVEN BETTER BY COMPARISON AND THEY ADDED THAT THE NEW SIGNS OF GERMAN ECONOMIC WEAKNESS COULD TIP THE SCALES IN FAVOR OF A RATE CUT WHEN THE BUNDESBANK'S POLICYMAKING PANEL MEETS ON THURSDAY I WOULD NOT RULE OUT THE POSSIBILITY OF A QUARTERPOINT CUT THURSDAY SAID CARL AMENDOLA VICE PRESIDENT AT BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK THE GERMAN RETAIL SALES DATA ALSO HAD AN EXTRA IMPACT TRADERS SAID BECAUSE THEY ARRIVED WHEN THE DOLLAR WAS DRIFTING AROUND 16980 MARKS THE LOWER END OF ITS RECENT TRADING RANGE FROM THERE THE NEWS SPARKED A ROUND OF SHORTCOVERING BY SHORTTERM PLAYERS AND BROUGHT IN SOME BUYING FROM LONGERTERM INVESTORS LOOKING FOR CHEAP DOLLARS TRADERS SAID THAT INVESTORS WHO BELIEVE THE DOLLAR WILL RISE IN COMING WEEKS ON STRONG US ECONOMIC GROWTH AND DECLINING INTEREST RATES IN GERMANY JAPAN AND ELSEWHERE BELIEVE THAT IT MAY BE A LONG TIME BEFORE THEY WILL AGAIN BE ABLE TO BUY DOLLARS FOR UNDER 17000 MARKS IF YOU LOOK AT THIS MARKET LOGICALLY AND FUNDAMENTALLY IT MAKES SENSE TO BUY DOLLARS DOWN THERE SAID BELAL KHAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO IN NEW YORK ACCORDING TO THAT SAME LOGIC TRADERS SAID THE DOLLAR SHOULD ALSO BE ABLE TO RISE AGAINST THE YEN BUT JAPANESE EXPORTING COMPANIES CONTINUE TO BE AGGRESSIVE DOLLAR SELLERS AT ABOUT 10920 YEN AND HIGHER TRADERS SAID DESPITE THE ROSIER US ECONOMIC OUTLOOK COMPARED WITH JAPAN'S TRADERS SAID IT MAY BE SOME TIME BEFORE THE DOLLAR CAN PUSH BEYOND THAT POINT NEVERTHELESS TRADERS REMAIN HOPEFUL THAT A NEW ROUND OF US ECONOMIC DATA DUE THIS WEEK COULD GIVE THE DOLLAR THE STRENGTH TO MOVE HIGHER AGAINST ALL MAJOR CURRENCIES THE PARADE OF US DATA KICKS OFF TODAY WITH THIRDQUARTER RETAIL SALES WHICH ECONOMISTS EXPECT TO SHOW A GAIN OF 05 FROM THE PREVIOUS QUARTER 9312140075 931214 MARKETING BRIEF ACKERLEY COMMUNICATIONS INC COMPANY EXPECTS EARNINGS FOR FOURTH PERIOD TO BE FLAT ACKERLEY COMMUNICATIONS INC SAID IT EXPECTS FOURTHQUARTER NET INCOME TO REMAIN ABOUT THE SAME AS THE 26 CENTSASHARE NET THE COMPANY REPORTED IN THE YEARAGO QUARTER THE SEATTLE SPORTSMANAGEMENT AND COMMUNICATIONS COMPANY SAID NET FOR 1993 IS EXPECTED TO BE DOUBLE THE YEARAGO NET OF 32 MILLION OR 23 CENTS A SHARE IN 1992 ACKERLEY HAD REVENUE OF 1873 MILLION THE COMPANY SAID ITS 1993 EARNINGS GOT A BOOST WHEN ITS SEATTLE SUPERSONICS TEAM MADE THE NATIONAL BASKETBALL ASSOCIATION PLAYOFFS EARLIER THIS YEAR UNDER NBA RULES WE SPLIT PLAYOFF REVENUES WITH THE LEAGUE BUT THE NBA PAYS THE PLAYERS' PLAYOFF SALARIES SAID DENIS CURLEY ACKERLEY'S CHIEF FINANCIAL OFFICER MR CURLEY SAID THE COMPANY'S REVENUE WAS HURT BY HURRICANE ANDREW WHICH COST ACKERLEY BILLBOARDS AND ADVERTISERS ABOUT 25 OF ACKERLEY'S OUTDOOR BILLBOARDS ARE IN SOUTH FLORIDA HE SAID 9312140074 931214 TECHNOLOGY BRIEF PROCYTE CORP STOCK PLUNGES ON SUSPENSION OF PRODUCT'S CLINICAL TRIALS PROCYTE CORP'S STOCK TUMBLED ALMOST 30 AFTER THE PHARMACEUTICAL COMPANY SAID THE FOOD AND DRUG ADMINISTRATION ORDERED IT TO SUSPEND CLINICAL TRIALS OF ITS IAMIN PRODUCT IAMIN IS A GEL TO TREAT FOOT ULCERS IN DIABETICS THE FDA ASKED THE COMPANY TO HALT THE TESTS ON FRIDAY TO INVESTIGATE THE DEATHS OF SEVEN PEOPLE FROM HEART PROBLEMS ANOTHER 21 OF THE 339 DIABETIC PATIENTS IN THE TRIAL SUFFERED CARDIOVASCULAR PROBLEMS YESTERDAY PROCYTE STOCK TRADED AS LOW AS 950 BEFORE CLOSING AT 10875 OFF 4625 IN NATIONALOVERTHECOUNTER TRADING VOLUME TOTALED 23 MILLION SHARES THE KIRKLAND WASH COMPANY SAID THE DEATHS APPEARED TO BE UNRELATED TO THE GEL AND THAT THE STRICKEN PATIENTS HAD A HISTORY OF HEART PROBLEMS THAT NORMALLY WOULD BE EXACERBATED BY THE ILLNESS PENDING THE FDA REVIEW THE COMPANY SAID IT HOPED TO RESUME THE TESTS SOON 9312140073 931214 BUSINESS BRIEF MORRISON PETROLEUMS LTD LOUISIANA LAND PLANS TO SELL OIL AND GAS LANDS IN ALBERTA MORRISON PETROLEUMS LTD CALGARY ALBERTA SAID IT AGREED TO BUY OIL AND GAS PROPERTIES PRODUCTION FACILITIES AND AN OILEXPLORATION DATABASE FROM LOUISIANA LAND & EXPLORATION CO NEW ORLEANS FOR 57 MILLION CANADIAN DOLLARS 429 MILLION MORRISON A CALGARY OIL AND GAS PRODUCER SAID THE ASSETS IT PLANS TO ACQUIRE ARE ALL IN SOUTHERN ALBERTA IT SAID THE OIL AND GAS PROPERTIES PRODUCE 2600 BARRELS A DAY OF OIL AND TWO MILLION CUBIC FEET OF NATURAL GAS THE COMPANY'S VICE PRESIDENT CORPORATE DEVELOPMENT JAMES C LOUGH SAID MORRISON PLANS TO SPEND A FURTHER C5 MILLION TO C8 MILLION OVER THE NEXT 12 TO 18 MONTHS DEVELOPING THE PROPERTIES MORRISON SAID IT PLANS TO EXPAND PRODUCTION FACILITIES AND TO DRILL AT LEAST 25 WELLS THE COMPANY SAID IT EXPECTS THE TRANSACTION TO CLOSE BY DEC 31 SUBJECT TO BOARD AND REGULATORY APPROVALS AND ELECTIONS ON RIGHTS OF FIRST REFUSAL AFFECTING SOME OF THE PROPERTIES 9312140071 931214 BUSINESS BRIEF PENTAGEN TECHNOLOGIES SECOND SUIT IS FILED IN CASE ALLEGING COPYRIGHT VIOLATION PENTAGEN TECHNOLOGIES INTERNATIONAL LTD SAID IT FILED A SECOND LAWSUIT AGAINST CACI INTERNATIONAL INC ALLEGING COPYRIGHT INFRINGEMENT OF ITS SOFTWARE IN THE SUIT FILED IN US DISTRICT COURT IN NEW YORK PENTAGEN IS SEEKING 78 MILLION IN DAMAGES AND 234 MILLION IN PUNITIVE DAMAGES AS WELL AS INJUNCTIONS AGAINST CACI FOR ALLEGED WRONGDOING IN ITS SUIT PENTAGEN CLAIMS THAT CACI AGREED TO DEVELOP A SOFTWARE PRODUCT ALONG WITH INTERNATIONAL BUSINESS MACHINES CORP FOR A 474 MILLION ARMY CONTRACT PENTAGEN SAID CACI'S SOFTWARE PRODUCT APPEARED TO BE A RIPPED OFF VERSION OF ITS OWN MENTIX SOFTWARE CACI DESCRIBED PENTAGEN'S ALLEGATIONS AS BEING UTTERLY WITHOUT BASIS AND FACT ACCORDING TO CACI'S GENERAL COUNSEL PENTAGEN HAS MISCHARACTERIZED THE CONTRACT HE SAID THE 474 MILLION CONTRACT RELATES TO A VERY WIDE RANGE OF SERVICES NONE OF WHICH RELATE TO PENTAGEN'S ALLEGATIONS CACI IS AN INFORMATION SYSTEMS AND HIGHTECHNOLOGY SERVICES CONCERN BASED IN ARLINGTON VA PRIVATELY HELD PENTAGEN WHICH IS INCORPORATED IN ENGLAND BUT HAS OFFICES IN NEW YORK OWNS SEVERAL PATENT APPLICATIONS FOR WHAT IT CALLS A UNIVERSAL PROGRAMMING LANGUAGE IN JULY PENTAGEN HAD SUED CACI FOR ALLEGEDLY IGNORING ITS RIGHTS TO SOFTWARE FOR AN ARMY CONTRACT AND IS SEEKING 8 MILLION IN DAMAGES 9312140070 931214 BUSINESS BRIEF POLYMEDICA INDUSTRIES INC COMPANY ANTICIPATES PROFIT FOR QUARTER ENDING DEC 31 POLYMEDICA INDUSTRIES INC WOBURN MASS SAID IT EXPECTS TO REPORT ITS FIRST FULL QUARTER OF PROFITABILITY FROM CONTINUING OPERATIONS IN THE FISCAL THIRD QUARTER ENDING DEC 31 THE HEALTHCARE PRODUCTS COMPANY SAID ANALYSTS HAD EXPECTED A THIRDQUARTER OPERATING LOSS OF 10 CENTS A SHARE IN THE YEAREARLIER THIRD QUARTER THE COMPANY REPORTED A LOSS OF 18 CENTS A SHARE IN A STATEMENT POLYMEDICA SAID THE RESULTS REFLECTED IMPROVED PERFORMANCE IN ALL SEGMENTS OF THE COMPANY IT ALSO SAID THAT THIRDQUARTER REVENUE WOULD BE THE STRONGEST IN ITS HISTORY STEVEN J LEE PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN THE STATEMENT THAT A DECISION IN THE FIRST QUARTER TO INVEST IN A STRATEGIC MARKETING PROGRAM RESULTED IN RAPIDLY INCREASING SALES OF OVERTHECOUNTER AND PRESCRIPTION PHARMACEUTICAL PRODUCTS AS WELL AS FURTHER MARKET PENETRATION BY OUR HEALTHCARE DIVISION 9312140069 931214 BUSINESS BRIEF VALUE MERCHANTS INC DEEPDISCOUNT RETAILER FILES FOR CHAPTER 11 PROTECTION VALUE MERCHANTS INC SAID IT AND SOME OF ITS SUBSIDIARIES INCLUDING ITS EVERYTHING'S A DOLLAR UNIT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE THE MILWAUKEE RETAILER WHICH SELLS CLOSEOUT ITEMS AND DISCONTINUED PRODUCTS AT DEEPLY DISCOUNTED PRICES SAID IT TOOK THE STEP AFTER IT EXHAUSTED OTHER OPTIONS TO SAFEGUARD ITS FUTURE OPERATIONS THE COMPANY SAID ITS SALES TRENDS BEGAN TO IMPROVE AFTER IT SECURED A NEW 60 MILLION LINE OF CREDIT IN AUGUST AND BEGAN TO REPLENISH STORE INVENTORY EXISTING LENDERS WERE PAID DOWN AND THE FACILITY PROVIDED WORKING CAPITAL BUT IT SAID BECAUSE OF A NUMBER OF FACTORS WE DID NOT SEE THE SALES IMPROVEMENT THAT WE EXPECTED WHEN WE CLOSED ON THE CREDIT FACILITY VALUE MERCHANTS SAID IT IS HOLDING TALKS ON THE SALE OF ITS WHOLESALE AND RETAIL TOY DIVISION AND INTENDS TO ASK THE BANKRUPTCY COURT TO APPROVE THE CLOSING OF A NUMBER OF UNDERPERFORMING STORES AFTER THE CHRISTMAS SEASON 9312140068 931214 BUSINESS BRIEF MEDIA VISION TECHNOLOGY INC TVTOP MULTIMEDIA DEVICE EXPECTED TO BE INTRODUCED MEDIA VISION TECHNOLOGY INC SAID IT PLANS TO ENTER THE MARKET FOR TV SETTOP MULTIMEDIA PLAYERS SATISH GUPTA VICE PRESIDENT OF STRATEGIC MARKETING AND DEVELOPMENT SAID MEDIA VISION EXPECTS TO INTRODUCE A MACHINE IN LATE 1994 OR EARLY 1995 THAT CONNECTS TO TELEVISIONS AND PLAYS CDROM DISKS DEVELOPED FOR IBMCOMPATIBLE PERSONAL COMPUTERS THE FREMONT CALIF MAKER AND MARKETER OF MULTIMEDIA COMPUTING PRODUCTS IS TARGETING A PRICE RANGE OF 300 TO 400 HE SAID GUPTA SAID HIS COMPANY HOPES TO UNDERCUT THE 699 PRICE OF COMPETING 3DO CO SYSTEMS SEPARATELY MEDIA VISION EXECUTIVES SAID GROSS MARGINS SHOULD INCREASE TO 37 OR 38 OVER THE NEXT 24 MONTHS COMPARED WITH ABOUT 33 NOW FOR THE THIRD QUARTER MEDIA VISION HAD NET INCOME OF 23 MILLION OR 13 CENTS A SHARE COMPARED WITH PROFIT OF 16 MILLION OR NINE CENTS A SHARE A YEAR EARLIER REVENUE WAS 643 MILLION COMPARED WITH 618 MILLION A YEAR EARLIER 9312140067 931214 BUSINESS BRIEF PHOENIX HOME MUTUAL LIFE INSURANCE MORTGAGES TOTALING MORE THAN 500 MILLION ARE SOLD PHOENIX HOME MUTUAL LIFE INSURANCE CO HAS SOLD MORE THAN 500 MILLION OF MORTGAGES IN A TRANSACTION THAT OTHER INSURERS ARE EXPECTED TO EMULATE THE SALES WILL STRENGTHEN SIGNIFICANTLY PHOENIX'S BALANCE SHEET AT A TIME WHEN REGULATORS ARE IMPOSING NEW STANDARDS THAT MEASURE HOW MUCH CAPITAL AN INSURANCE COMPANY HAS TO SUPPORT THE RISKINESS OF ITS ASSETS AND OPERATIONS PHOENIX BASED IN HARTFORD CONN PACKAGED TOGETHER 410 MILLION OF MORTGAGES AND SOLD THEM AS SECURITIES IT SOLD OUTRIGHT AN ADDITIONAL 958 MILLION OF DEFAULTED MORTGAGES GOLDMAN SACHS & CO WAS THE ADVISER THIS IS GOING TO MEAN A BIG PICKUP FOR ITS CAPITAL SAID FREDERICK TOWNSEND A CONSULTANT WITH TOWNSEND & SCHUPP IN HARTFORD THE SALES WILL REDUCE THE COMPANY'S MORTGAGE PORTFOLIO TO 13 BILLION OR 145 OF INVESTED ASSETS BOSTONBASED NEW ENGLAND MUTUAL LIFE INSURANCE CO AND OTHER INSURERS ARE PLANNING SIMILAR TRANSACTIONS 9312140066 931214 BUSINESS BRIEF LIVING CENTERS OF AMERICA INC SUIT SETTLED WITHIN LIMITS OF INSURANCE COVERAGE LIVING CENTERS OF AMERICA INC SAID IT SETTLED A LAWSUIT IN WHICH AN ALABAMA JURY RULED THAT THE COMPANY MUST PAY 65 MILLION TO THE PLAINTIFF LIVING CENTERS DIDN'T DISCLOSE THE AMOUNT OF THE SETTLEMENT BUT SAID THE PLAINTIFF HAD AGREED TO SETTLE THE CASE WITHIN THE LIMITS OF INSURANCE COVERAGE THEREBY AVERTING ANY ADVERSE EFFECT TO THE COMPANY LIVING CENTERS WHICH OPERATES HEALTHCARE CENTERS HAD SAID IT WOULD APPEAL THE JURY VERDICT WHEN IT WAS ANNOUNCED LAST MONTH IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LIVING CENTER SHARES ROSE 125 TO 23625 THE CASE STEMS FROM A 1990 INCIDENT IN WHICH AN 83YEAROLD PATIENT DIED AT A HEALTHCARE FACILITY OPERATED BY VARICARE INC LIVING CENTERS ACQUIRED VARICARE EARLIER THIS YEAR AND ASSUMED RESPONSIBILITY FOR THE SUIT 9312140064 931214 BUSINESS BRIEF GENERAL ELECTRIC CO UNIT TO PROVIDE 600 MILLION IN EQUIPMENT FOR INDIA PLANT GENERAL ELECTRIC CO'S GE INDUSTRIAL & POWER SYSTEMS UNIT SAID IT WILL PROVIDE ABOUT 600 MILLION IN EQUIPMENT FOR A 2015 MEGAWATT COMBINEDCYCLE POWER PROJECT IN DABHOL INDIA ABOUT 100 MILES SOUTH OF BOMBAY GE INDUSTRIAL & POWER SYSTEMS IN A CONSORTIUM WITH BECHTEL GROUP INC'S BECHTEL POWER CORP WILL SUPPLY POWERGENERATION EQUIPMENT ENGINEERING AND CONSTRUCTION SERVICES THE PROJECT IS BEING DEVELOPED AND OPERATED BY ENRON CORP'S ENRON DEVELOPMENT CORP A JOINT VENTURE INCLUDING GE ENRON AND BECHTEL WILL OWN THE PLANT THE JOINT VENTURE LAST WEEK SIGNED A 20YEAR POWER PURCHASE AGREEMENT WITH THE MAHARASHTRA STATE ELECTRICITY BOARD 9312140063 931214 TECHNOLOGY SMITHKLINE GETS UK CLEARANCE LONDON SMITHKLINE BEECHAM PLC SAID IT RECEIVED UNITED KINGDOM MARKETING APPROVAL FOR ITS FAMVIR TREATMENT FOR HERPES VIRUS INFECTIONS THE PHARMACEUTICAL GROUP SAID THE MOVE IS AN IMPORTANT STEP IN ITS ENTRY INTO THE FIELD OF ANTIVIRAL THERAPY AS WELL AS A CONSOLIDATION OF ITS POSITION IN THE GENERAL FIELD OF INFECTION CONTROL 9312140062 931214 BUSINESS BRIEF TECK CORP MINING CONCERN SLATES OFFER OF 45 MILLION CLASS B SHARES TECK CORP SAID IT EXPECTS TO RAISE 1046 MILLION CANADIAN DOLLARS US787 MILLION FROM THE SALE TO A GROUP OF UNDERWRITERS OF 45 MILLION CLASS B SUBORDINATE VOTING SHARES AT C2325 US1749 A SHARE THE SHARES WILL BE REOFFERED FOR SALE IN CANADA BY GORDON CAPITAL CORP OF TORONTO AND IN EUROPE BY CS FIRST BOSTON INC THE UNDERWRITERS ALSO HAVE AN OPTION TO ACQUIRE AN ADDITIONAL ONE MILLION SHARES WHICH IF EXERCISED WOULD INCREASE TECK'S GROSS PROCEEDS TO C1279 MILLION TECK A MINING CONCERN IN VANCOUVER BRITISH COLUMBIA SAID THE PROCEEDS WILL BE USED TO FINANCE THE COMPANY'S BUSINESS ACTIVITIES IN TORONTO STOCK EXCHANGE TRADING YESTERDAY TECK CLASS B SHARES CLOSED AT C23625 DOWN 25 CANADIAN CENTS 9312140061 931214 MARKETING & MEDIA SHAMROCK TO SELL RADIO STATION BURBANK CALIF SHAMROCK BROADCASTING INC SAID IT SIGNED A LETTER OF INTENT TO SELL ITS SEATTLE RADIO STATION KXRXFM TO ALLIANCE BROADCASTING LIMITED PARTNERSHIP OF WALNUT CREEK CALIF TERMS WEREN'T DISCLOSED SHAMROCK WHICH CURRENTLY OPERATES 21 RADIO STATIONS IS A UNIT OF SHAMROCK HOLDINGS INC THE INVESTMENT HOLDING COMPANY FOR THE ROY E DISNEY FAMILY ALLIANCE OWNS RADIO STATIONS IN DALLAS SAN FRANCISCO AND DETROIT 9312140060 931214 BUSINESS BRIEF AUDRE RECOGNITION SYSTEMS INC FIRM TO REPORT WIDER LOSS FOR FISCAL SECOND QUARTER AUDRE RECOGNITION SYSTEMS INC EXPECTS TO POST A NET LOSS OF ABOUT 15 MILLION OR TWO CENTS TO FOUR CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED OCT 31 THE SAN DIEGO COMPANY IS A DEVELOPER OF ARTIFICIALINTELLIGENCE COMPUTER SOFTWARE ITS LATEST RESULTS TO BE REPORTED TOMORROW COMPARE WITH A NET LOSS OF 928330 OR TWO CENTS A SHARE IN THE YEAREARLIER PERIOD CHAIRMAN AND CHIEF EXECUTIVE THOMAS F CASEY SAID REVENUE FOR THE 1993 QUARTER ROSE TO ABOUT 500000 FROM 182393 IN 1992 MR CASEY ATTRIBUTED THE PAST QUARTER'S LARGER LOSS TO COSTS ASSOCIATED WITH INCREASED CUSTOMER AND SALES SUPPORT IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE AUDRE CLOSED AT 16875 DOWN 1875 CENTS OR 10 9312140059 931214 MARKETING & MEDIA ADVERTISING LUFTHANSA'S US OTHER ACCOUNTS ARE GIVEN TO YOUNG & RUBICAM BY KEVIN GOLDMAN LUFTHANSA GERMANY'S FLAGSHIP AIRLINE ENDED ITS RELATIONSHIP WITH INTERPUBLIC GROUP'S MCCANNERICKSON AFTER A QUARTER CENTURY MCCANN HANDLED THE US PORTION OF THE ACCOUNT AS WELL AS THE ACCOUNTS FOR PARTS OF ASIA AND LATIN AMERICA THE AIRLINE AWARDED THE ACCOUNT TO YOUNG & RUBICAM WHICH ALREADY HANDLED THE REST OF THE CARRIER'S WORLDWIDE ADVERTISING THE LUFTHANSA ACCOUNT HAS BILLINGS ESTIMATED AT 15 MILLION ALTHOUGH INDUSTRY OFFICIALS FORECAST LUFTHANSA MAY MORE THAN TRIPLE THAT AMOUNT NEXT YEAR THE WIN IS ANOTHER NOTCH IN YOUNG & RUBICAM'S BELT SINCE JUNE THE CLOSELY HELD AGENCY HAS WON ABOUT 350 MILLION IN NEW BUSINESS THAT IS AN ESPECIALLY SIGNIFICANT ACCOMPLISHMENT FOR YOUNG & RUBICAM BECAUSE THE AGENCY HASN'T BEEN KNOWN RECENTLY FOR BREAKTHROUGH CREATIVE WORK INSTEAD ITS REPUTATION IS ONE OF DELIVERING STEADYASYOUGO WORK THE NEWS OF THE LUFTHANSA WIN COINCIDES WITH A SIGNIFICANT LOSS THOUGH AMERICAN TELEPHONE & TELEGRAPH QUIETLY MOVED ABOUT 30 MILLION OF ITS DOMESTIC CONSUMER LONGDISTANCE ACCOUNT TO AYER FROM YOUNG & RUBICAM THE UNEXPECTED MOVE LEAVES YOUNG & RUBICAM WITH THE COMMUNICATIONS GIANT'S INTERNATIONAL BUSINESS DICK MARTIN AT&T'S EXECUTIVE VICE PRESIDENT OF PUBLIC RELATIONS AND CORPORATE ADVERTISING DECLINED TO COMMENT OR CONFIRM THE MOVE WHICH WASN'T PUBLICLY ANNOUNCED BUT WAS REPORTED IN TRADE PUBLICATIONS HOWEVER MR MARTIN SAYS THE AGENCY HAS TENS OF MILLIONS OF DOLLARS OF AT&T BUSINESS HE ADDED THAT MANY AGENCIES WOULD BE GREEN WITH ENVY TO HAVE YOUNG & RUBICAM'S AT&T BUSINESS THE LUFTHANSA WIN ALSO SOFTENS THE BLOW OF OTHER LOSSES INCLUDING JOHNSON & JOHNSON'S MEDIA BUYING ASSIGNMENT VALUED AT 200 MILLION WHICH WAS AWARDED TO MCCANN THIS MONTH YOUNG & RUBICAM HAD A DRY SPELL BEFORE ITS RECENT ROLL OF VICTORIES AND ON MADISON AVENUE THE SHOP WAS PERCEIVED AS WELL SLEEPY NO MORE IN JUNE SEARS ROEBUCK AWARDED ITS 40 MILLION ACCOUNT TO YOUNG & RUBICAM THAT WAS FOLLOWED BY MOLSON USA 40 MILLION IN BILLINGS DIGITAL EQUIPMENT PERSONAL COMPUTERS 15 MILLION TO 20 MILLION MCA/UNIVERSAL TELEVISION 6 MILLION AND RADIO SHACK 50 MILLION PERHAPS THE BIGGEST CHALLENGE LIES AHEAD HOWEVER IN TRYING TO STEER TRAVELERS TO LUFTHANSA THE AIRLINE IS IN A PITCHED MARKETSHARE BATTLE WITH BRITISH AIRWAYS AND AIR FRANCE FOR FOURTH PLACE FOLLOWING LEADERS AMERICAN AIRLINES UNITED AND DELTA THE AIRLINE HAS HAD A PRETTY MISERABLE TIME OF IT LATELY SAYS JOHN EICHNER CHAIRMAN OF SIMAT HELLIESEN & EICHNER AN AIRLINE CONSULTING FIRM IN NEW YORK IT ISN'T A FLEXIBLE ORGANIZATION AND CAN'T MAKE THE CHANGES IT NEEDS TO MAKE IN ORDER TO BE ECONOMICALLY EFFICIENT LAST MONTH THE AIRLINE REPORTED A THIRDQUARTER PROFIT OF 145 MILLION MARKS 855 MILLION AFTER LOSSES OF 221 MILLION MARKS IN THE FIRST HALF OF 1993 BUT LUFTHANSA IS STILL ON TRACK TO POST LOSSES FOR 1993 ACCORDING TO WOLFGANG ROELLER A MEMBER OF LUFTHANSA'S BOARD OF SUPERVISORS CLEARLY THE ADVERTISING HAS TO PROVIDE SOME OF THE SPARK FOR LUFTHANSA NO DOUBT THE CURRENT SLOGAN PASSION FOR PERFECTION WILL BE KILLED MCCANN WAS ALSO THE AGENCY THAT RECALLED SOME OF GERMANY'S HERITAGE BY USING THE NAME THE RED BARON IN SOME OVERSEAS MARKETS YOUNG & RUBICAM USES THE ODD BUT APPARENTLY EFFECTIVE COMMERCIAL THAT SHOWS BIRDS IN FLIGHT WHILE THE THEME SONG FROM THE MOVIE AN OFFICER AND A GENTLEMAN IS HEARD THE SLOGAN WE LIFT YOU UP WHERE YOU BELONG ALEX KROLL YOUNG & RUBICAM'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IT IS TOO EARLY TO TELL WHAT ADVERTISING WILL BE USED DOMESTICALLY FOR LUFTHANSA MCCANN SAYS THE DISSOLUTION OF THE RELATIONSHIP WITH LUFTHANSA WAS MUTUAL SINCE THE AIRLINER WANTED TO CONSOLIDATE ITS ADVERTISING ON A GLOBAL LEVEL WE COULDN'T HANDLE IT WORLDWIDE SAYS A MCCANN SPOKESWOMAN CITING CONFLICTS WITH OTHER CLIENTS SUCH AS CATHAY PACIFIC AT YOUNG & RUBICAM MR KROLL CALLS THE LUFTHANSA WIN A DREAM COME TRUE SINCE THE ACCOUNT COMBINES MY PERSONAL CONVICTIONS WITH MY PROFESSIONAL APPETITE ADDING I WANT TO HELP THEM COMMUNICATE HOW GREAT THEY ARE MR KROLL SAYS THE RECENT WINS EXEMPLIFY THE SUCCESS OF YOUNG & RUBICAM'S WORLDWIDE NETWORK FOR INSTANCE TO HELP WITH THE AGENCY'S PITCH TO SEARS THIS YEAR THE AGENCY CALLED ON ITS OFFICE IN CAPE TOWN SOUTH AFRICA THAT UNIT SAYS MR KROLL HAS RETAIL EXPERTISE IN ADVERTISING THE PICK AND PAY SUPERMARKET FRANCHISE THE MOST POWERFUL BRAND NAME IN SOUTH AFRICA THE NEW ACCOUNTS AT YOUNG & RUBICAM WON'T TRANSLATE INTO NEW EMPLOYMENT OPPORTUNITIES ON MADISON AVENUE WE'RE BRINGING IN PEOPLE ALL THE TIME MR KROLL SAYS BUT IN THE NEXT BREATH HE ADDS THE NUMBER OF EMPLOYEES WON'T INCREASE BUT THE QUALITY OF TALENT WILL INCREASE EASTMAN KODAK'S STERLING WINTHROP UNIT IS LISTENING TO PITCHES FROM AGENCIES INTERESTED IN CREATING ADS FOR BAYER ASPIRIN INDUSTRY EXECUTIVES SAID INDICATING THAT AYER'S GRIP ON THE ESTIMATED 23 MILLION BAYER ACCOUNT MAY BE LOOSENING A SPOKESMAN FOR STERLING HEALTH USA WHICH MARKETS STERLING WINTHROP'S OVERTHECOUNTER PRODUCTS DECLINED TO COMMENT HE COULDN'T CONFIRM REPORTS LAST WEEK IN THE DELANEY REPORT NEWSLETTER AND THIS WEEK IN ADVERTISING AGE AN AYER SPOKESMAN DENIED THE ACCOUNT WAS IN REVIEW THE NUMBER OF AGENCIES IN PURSUIT OF THE BRAND COULDN'T BE DETERMINED BUT EXECUTIVES SAID AT LEAST ONE OF THE AGENCIES WHO PITCHED FOR THE ACCOUNT IN 1991 THE LAST TIME IT WAS UP FOR GRABS IS CONTENDING THE AGENCIES WHO PITCHED LAST TIME ARE BBDO A UNIT OF OMNICOM GROUP OGILVY & MATHER A UNIT OF WPP GROUP AND AMMIRATI & PURIS BOZELL JACOBS KENYON & ECKHARDT THE HOLDING COMPANY THAT OWNS THE BOZELL AD AGENCY HAS ACQUIRED COSTA MESA CALIF AGENCY SALVATI MONTGOMERY SAKODA THE FIRM HAS BEEN MERGED WITH THE LOS ANGELES OFFICE OF BOZELL CREATING A 98 MILLION AGENCY WITH TWO OFFICES IN SOUTHERN CALIFORNIA TERMS OF THE DEAL WEREN'T DISCLOSED ALTHOUGH THE DEAL INCLUDES STOCK AND CASH PAYABLE ON AN EARNOUT SCHEDULE SAID PHILIP SALVATI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SALVATI MONTGOMERY SALVATI MONTGOMERY HAS BILLINGS OF ABOUT 38 MILLION FROM CLIENTS INCLUDING PACTEL CELLULARPHONE SERVICE AND INTERNATIONAL HOUSE OF PANCAKES RESTAURANTS BOZELL'S LOS ANGELES OFFICE BILLS ABOUT 40 MILLION FROM SUCH CLIENTS AS CHRYSLER AMERICAN AIRLINES AND KAWASAKI MOTORS MEL NEWHOFF PREVIOUSLY AN EXECUTIVE VICE PRESIDENT AT BOZELL'S LOS ANGELES OFFICE WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF WEST COAST OPERATIONS MR SALVATI WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF THE AGENCY'S COSTA MESA OFFICE ABSOLUT STARTING TOMORROW NIGHT GRAND METROPOLITAN'S CARILLON IMPORTERS AND AGENCY TBWA ADVERTISING A UNIT OF OMNICOM GROUP WILL PROJECT ABSOLUT VODKA ADS 200 FEET HIGH ALONG THE STREETS OF CHICAGO A TRUCK ROLLING ALONG MICHIGAN AVENUE WILL PROJECT IMAGES OF SEVERAL FAMOUS ABSOLUT ADS INCLUDING TWO DESIGNED BY THE ARTISTS ANDY WARHOL AND KEITH HARING THE ADS ARE SET TO APPEAR EVERY SEVEN SECONDS BETWEEN 5 PM AND 11 PM CST THROUGH FRIDAY ABSOLUT PLANS TO REPEAT THE STUNT NEXT WEEK IN MIAMI 9312140058 931214 BUSINESS BRIEF FORD MOTOR CO AUTO MAKER BEGINS MAKING RIGHTHANDDRIVE PROBES FORD MOTOR CO EXPECTS EXPORTS OF ITS PROBE SPORTS COUPE TO MORE THAN DOUBLE NEXT YEAR FROM THE 8600 EXPORTED THIS YEAR BECAUSE THE AUTO MAKER IS ADDING A RIGHTHANDDRIVE VERSION OF THE CAR AUTOALLIANCE INTERNATIONAL A FORD/MAZDA MOTOR CORP JOINT VENTURE IN FLAT ROCK MICH YESTERDAY BEGAN PRODUCING RIGHTHANDDRIVE PROBES FOR DELIVERY TO THE UNITED KINGDOM WITHIN A FEW MONTHS FORD ALSO EXPECTS TO BE EXPORTING RIGHTHANDDRIVE PROBES FROM FLAT ROCK TO JAPAN IRELAND AUSTRALIA AND NEW ZEALAND WAYNE BOOKER WHO HEADS FORD'S INTERNATIONAL AUTO OPERATIONS ESTIMATES THAT HALF OF THE PROBES EXPORTED WILL BE RIGHTHANDDRIVE WITHIN TWO YEARS A LEFTHANDDRIVE PROBE HAS BEEN EXPORTED FOR SOME TIME TO GERMANY AND JAPAN WHILE GERMANY IS A LEFTHANDDRIVE MARKET LIKE THE US JAPAN IS NOT AND US AUTO MAKERS HAVE BEEN CRITICIZED FOR NOT PRODUCING RIGHTHANDDRIVE VEHICLES THAT WOULD BE MORE APPEALING TO JAPANESE CAR BUYERS FOLLOWING THE PROBE FORD PLANS TO SHIP A RIGHTHANDDRIVE VERSION OF ITS MONDEO FROM EUROPE TO JAPAN IN THE SPRING FORD ALSO PLANS TO EXPORT RIGHTHANDDRIVE VERSIONS OF THE NEXTGENERATION EXPLORER SPORT UTILITY CAR AND TAURUS MIDSIZED SEDAN TO JAPAN IN THE MID1990S BOTH OF THESE VEHICLES ARE BUILT IN THE US 9312140057 931214 BUSINESS BRIEF GUNDLE ENVIRONMENTAL SYSTEMS INC COMPANY FORESEES DECLINE IN FISCAL THIRDQUARTER NET GUNDLE ENVIRONMENTAL SYSTEMS INC SAID IT EXPECTS EARNINGS FOR THE FISCAL THIRD QUARTER ENDING DEC 31 TO BE SIGNIFICANTLY LOWER THAN ANALYSTS' CURRENT ESTIMATES OF 21 CENTS TO 23 CENTS A SHARE THIRDQUARTER NET INCOME FOR 1992 WAS SIX CENTS A SHARE GUNDLE SHARES FELL 31 OR 325 TO 7125 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY THE HOUSTONBASED MAKER OF LANDFILLLINER SYSTEMS ALSO SAID IT EXPECTS EARNINGS FOR THE FISCAL YEAR TO RANGE FROM 50 CENTS TO 60 CENTS A SHARE GUNDLE'S NET FOR THE SIX MONTHS ENDED SEPT 30 WAS 5 MILLION OR 49 CENTS A SHARE GUNDLE SAID THE EARNINGS SHORTFALL WAS CAUSED IN PART BY POOR WEATHER INCREASED DOMESTIC COMPETITION AND LOWER INTERNATIONAL PRICES 9312140056 931214 TECHNOLOGY BRIEF ZONAGEN INC SCHERING AG TO COLLABORATE ON CONTRACEPTIVE PRODUCTS ZONAGEN INC SAID IT AGREED TO COLLABORATE WITH SCHERING AG ON DEVELOPING AND MARKETING HUMAN IMMUNOCONTRACEPTIVE PRODUCTS USING ZONAGEN TECHNOLOGY UNDER THE AGREEMENT A UNIT OF THE GERMAN PHARMACEUTICALS CONCERN WILL BUY 239933 OR 7 OF ZONAGEN'S COMMON SHARES FOR 25 MILLION ALSO ZONAGEN WILL RECEIVE PRODUCTDEVELOPMENT FUNDING CERTAIN MILESTONE PAYMENTS AND A PERCENTAGE OF PRODUCT REVENUE BASED IN THE WOODLANDS TEXAS ZONAGEN A MEDICAL PRODUCTS CONCERN SAID IT WOULD CONTINUE RESEARCH TO IDENTIFY A POTENTIAL IMMUNOCONTRACEPTIVE PRODUCT FOR HUMANS SCHERING WOULD CONDUCT THE NECESSARY PRECLINICAL AND CLINICAL STUDIES AND SEEK REGULATORY APPROVALS 9312140055 931214 BUSINESS BRIEF LOUISIANAPACIFIC CORP US FOREST SERVICE ACCUSED OF ABROGATING A CONTRACT LOUISIANAPACIFIC CORP SAID ITS KETCHIKAN PULP CO SUBSIDIARY HAS FILED CLAIMS WITH THE US FOREST SERVICE THAT ACCUSE THE GOVERNMENT OF ABROGATING A CONTRACT THAT CALLS FOR THE COMPANY TO PROCESS TIMBER IN ALASKA IN 1951 THE FEDERAL GOVERNMENT SIGNED A 50YEAR CONTRACT WITH KETCHIKAN PULP BASED IN KETCHIKAN ALASKA IN ORDER TO DEVELOP A FORESTPRODUCTS INDUSTRY AND GENERATE JOBS IN THE WILDERNESS AREA OF THE TONGASS NATIONAL FOREST BUT AFTER CONGRESS PASSED TIMBER LEGISLATION IN 1990 KETCHIKAN SAID THE FOREST SERVICE UNILATERALLY REVISED THE CONTRACT CUTTING BACK ON ITS TIMBER SUPPLY TO KETCHIKAN AND HURTING ITS OPERATIONS THE ADMINISTRATIVE CLAIMS FILED BY KETCHIKAN WITH THE FOREST SERVICE OFFICE IN JUNEAU SEEK APPROXIMATELY 80 MILLION IN DAMAGES AND AN UNSPECIFIED AMOUNT FOR THE LAST 10 YEARS OF THE CONTRACT THE COMPANY SAID THAT INSTEAD OF DAMAGES IT WOULD BE WILLING TO SETTLE FOR A RESUMPTION OF THE ORIGINAL CONTRACT THE FOREST SERVICE COULDN'T BE REACHED FOR COMMENT 9312140054 931214 HIGH COURT EXPANDS INSURERS' LIABILITY IN MANAGING OF CERTAIN PENSION FUNDS BY PAUL M BARRETT AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL THE SUPREME COURT SIGNIFICANTLY INCREASED THE LEGAL LIABILITY OF INSURANCE COMPANIES THAT MANAGE CERTAIN PENSION FUNDS THE HIGH COURT RULED 63 THAT INSURERS SHOULD BE HELD TO TOUGH FEDERAL STANDARDS FOR THE MANAGEMENT OF A COMMON KIND OF RETIREMENT INVESTMENT PURCHASED BY PENSION PLANS ON BEHALF OF EMPLOYEES INSURERS SAID THAT REQUIRING THEM TO MEET FEDERAL STANDARDS WHICH ARE MORE DEMANDING THAN STATE RULES WILL FORCE THEM TO REVISE MANAGEMENT AND INVESTMENT METHODS FOR HUNDREDS OF BILLIONS OF DOLLARS IN PENSION MONEY AN UNDERTAKING THEY PREDICT WILL BE COSTLY AND COULD POSE COMPLICATED ADMINISTRATIVE PROBLEMS BUT LAWYERS FOR PENSION PLANS CELEBRATED THE COURT'S ACTION THEY ASSERTED THAT THE RULING WILL PROTECT INDIVIDUALS AGAINST HIGHRISK INVESTMENTS OF THE SORT THAT CAUSED NEWARK NJBASED MUTUAL BENEFIT LIFE INSURANCE CO TO FAIL IN 1991 AND CREATED BIG LOSSES FOR PENSION FUNDS WRITING HER FIRST MAJORITY OPINION FOR THE HIGH COURT JUSTICE RUTH BADER GINSBURG POINTED OUT THAT CONGRESS COULD REVERSE THE EFFECT OF YESTERDAY'S RULING BY AMENDING THE FEDERAL PENSIONPROTECTION LAW INSURERS ARE EXPECTED TO PRESS FOR JUST SUCH AN AMENDMENT BUT ARE LIKELY TO FACE STIFF OPPOSITION FROM GROUPS REPRESENTING RETIREES AND WORKERS AT ISSUE IS A CERTAIN TYPE OF GROUPANNUITY CONTRACT IN GENERAL SUCH CONTRACTS PROVIDE A GUARANTEED YEARLY BENEFIT TO RETIREES THE COURT'S RULING APPLIES TO CONTRACTS THAT PROVIDE IN ADDITION TO THE GUARANTEED PAYMENT SUPPLEMENTAL BENEFITS THAT VARY DEPENDING ON THE INSURANCE COMPANY'S INVESTMENT RESULTS TRADITIONALLY INSURERS MIX PREMIUMS FROM GROUPANNUITY CONTRACTS WITH PREMIUMS FROM OTHER TYPES OF INSURANCE CONTRACTS INVESTING MUCH OF THE MONEY AND USING SOME TO PAY BUSINESS EXPENSES MANAGEMENT OF THESE GENERAL ACCOUNTS HAS BEEN REGULATED BY STATE CONTRACT AND INSURANCE LAWS BY CONTRAST TRUST ACCOUNTS WHICH ARE MANAGED ONLY FOR THE BENEFIT OF INDIVIDUAL INVESTORS OR PENSION PLANS ARE KEPT SEPARATE FROM GENERAL ACCOUNTS TRUST ACCOUNTS ARE PROTECTED BY THE FEDERAL EMPLOYEE RETIREMENT INVESTMENT SECURITY ACT OR ERISA ERISA REQUIRES THAT MANAGERS OF PENSION FUNDS ACT AS FIDUCIARIES MEANING THAT THE MONEY MUST BE HANDLED SOLELY IN THE INTEREST OF THE BENEFICIARIES IN PRACTICAL TERMS FIDUCIARY STATUS EXPOSES A FUND MANAGER TO FAR GREATER LEGAL LIABILITY WHILE GROUPANNUITY CONTRACTS ARE EXEMPT FROM ERISA'S FIDUCIARY REQUIREMENTS THE HIGH COURT SAID THE EXCEPTION DOESN'T COVER THE CONTRACTS THAT COMBINE A GUARANTEE OF SPECIFIC BENEFITS WITH VARIABLE SUPPLEMENTAL BENEFITS IN COMBINATION THESE FEATURES PROVIDE NO GENUINE GUARANTEE OF THE AMOUNT OF BENEFITS THAT PLAN PARTICIPANTS WILL RECEIVE IN THE FUTURE AND THEREFORE ERISA'S STRINGENT REQUIREMENTS APPLY JUSTICE GINSBURG WROTE SHE SAID THIS RESULT WAS CONSISTENT WITH ERISA'S GENERAL PURPOSE OF PROVIDING BROAD PROTECTION TO RETIREES THE RULING WAS A VICTORY FOR THE TRUSTEE OF AN ANNUITY PLAN FOR EMPLOYEES OF UNISYS CORP THE TRUSTEE HAD SUED JOHN HANCOCK MUTUAL LIFE INSURANCE CO ACCUSING IT OF FAILING TO ADMINISTER THE PLAN SOLELY ON BEHALF OF ITS BENEFICIARIES AS REQUIRED BY ERISA JOHN HANCOCK DECLINED TO COMMENT ON THE DECISION WHICH WILL ALLOW THE TRUSTEE'S SUIT TO PROCEED IF THE HIGH COURT'S RULING LEADS TO LESSRISKY INVESTMENTS THE RESULT COULD BE LOWER RATES OF RETURN FOR PENSION PLANS ACCORDING TO JUDY MARKLAND PRESIDENT OF LANDMARK STRATEGIES A CONSULTING FIRM IN WESTON MASS IN ADDITION INSURERS MAY PASS ALONG EXPENSES RELATED TO SEGREGATING PENSION INVESTMENTS FROM THEIR OTHER INVESTMENTS SHE SAID JOINING THE HIGH COURT'S MAJORITY WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES HARRY BLACKMUN JOHN PAUL STEVENS ANTONIN SCALIA AND DAVID SOUTER JUSTICE CLARENCE THOMAS WROTE A DISSENTING OPINION THAT WAS JOINED BY JUSTICES SANDRA DAY O'CONNOR AND ANTHONY KENNEDY JUSTICE THOMAS CHIDED THE MAJORITY FOR DISRUPTING THE SETTLED EXPECTATIONS OF THE INSURANCE INDUSTRY 9312140053 931214 INTERNATIONAL BRIEF SOCIETE NATIONALE ELF AQUITAINE AFTER PRIVATIZATION FRANCE TO KEEP CERTAIN KEY RIGHTS THE FRENCH GOVERNMENT PLANS TO KEEP A GOLDEN SHARE AS WELL AS A REGULAR 10 TO 15 STAKE IN ENERGY GROUP SOCIETE NATIONALE ELF AQUITAINE UPON ITS PRIVATIZATION UNDER THE GOLDENSHARE PLAN GOVERNMENT APPROVAL WOULD BE REQUIRED FOR ANY SHAREHOLDER WHO EXCEEDS LEVELS AT 10 20 AND 33 OF THE CAPITAL OR VOTING RIGHTS FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY SAID THE GOVERNMENT ALSO WOULD RETAIN THE RIGHT TO BLOCK THE SALE OF KEY ASSETS ELF AQUITAINE PRODUCTION ELF ANTAR FRANCE ELF CONGO SA AND ELF GABON SA THE GOVERNMENT CURRENTLY HOLDS 508 OF ELF ELF'S PRIVATIZATION WILL TAKE PLACE IN THE FIRST FEW MONTHS OF NEXT YEAR MR ALPHANDERY SAID ASSUMING MARKET CONDITIONS ALLOW IT THE EXACT PORTION THAT THE STATE WILL SELL OF ELF WILL BE ANNOUNCED AT THE TIME OF THE OFFERING HE ADDED 9312140052 931214 LAIDLAW OFFERING DEBT CONVERTIBLE INTO ADT STAKE BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO LAIDLAW INC SAID IT IS ISSUING 280 MILLION US OF FIVEYEAR DEBENTURES THAT ARE CONVERTIBLE INTO THE COMPANY'S STAKE IN ADT LTD THE PROCEEDS WILL ALLOW LAIDLAW TO REFINANCE EXISTING DEBT AT A MUCH LOWER RATE AT THE SAME TIME THE MOVE COULD FULFILL A PLEDGE BY THE COMPANY'S NEW CHIEF EXECUTIVE OFFICER TO REALIZE VALUE FROM THE ADT INVESTMENT IN ORDER TO FOCUS ON LAIDLAW'S CORE BUSINESSES OF WASTE DISPOSAL AND TRANSPORTATION THE MOVE FELL SHORT OF ANALYSTS' EXPECTATIONS THAT LAIDLAW WOULD SEEK A BUYER OUTRIGHT FOR ITS 25 STAKE IN ADT A BERMUDABASED MAKER OF SECURITY DEVICES STILL MOST ANALYSTS APPLAUDED THE MOVE SAYING LAIDLAW MADE THE BEST DEAL IT COULD FOR AN ASSET THAT HAS GIVEN IT PROBLEMS FOR THE PAST THREE YEARS IT'S A VERY CREATIVE WAY TO SELL THEIR POSITION IN ADT LAIDLAW IS SHOWING INVESTORS THAT THEY ARE DOING WHAT THEY SAID THEY WOULD SAID PRUDENTIAL SECURITIES INC ANALYST VISHNU SWARUP LAIDLAW ACQUIRED ITS ADT STAKE IN 1989 AT A COST OF ABOUT 28 A SHARE THE HOLDING HAS SINCE BEEN WRITTEN DOWN ON LAIDLAW'S BOOKS WHERE IT IS CURRENTLY VALUED AT 1169 A SHARE OR A TOTAL OF 280 MILLION THE TWO COMPANIES ALSO CAME TO BLOWS IN A LAWSUIT IN 1991 BUT THE SUIT WAS LATER WITHDRAWN NOW ADT'S CONDITION SEEMS TO HAVE STABILIZED IT REPORTED A PROFIT OF 899 MILLION ON REVENUE OF 103 BILLION IN THE FIRST NINE MONTHS OF THE YEAR AND ANALYSTS SAID THEY EXPECT CONTINUED GRADUAL IMPROVEMENT IN THE COMPANY'S EARNINGS JAMES BULLOCK WHO TOOK OVER AS LAIDLAW'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IN OCTOBER PROMISED TO RID THE COMPANY OF ITS MINORITY STAKE IN ADT HE ALSO PROMISED EITHER TO SELL LAIDLAW'S 36 HOLDING IN ATTWOODS PLC OR BUY CONTROL OF THE BRITISH WASTEDISPOSAL CONCERN A LAIDLAW SPOKESMAN SAID THE COMPANY IS STILL REVIEWING ITS ATTWOODS INVESTMENT THE LAIDLAW DEBENTURES WHICH ARE BEING PURCHASED BY A GROUP OF UNDERWRITERS LED BY RBC DOMINION SECURITIES INC MATURE IN 1999 THEY BEAR INTEREST AT 6 IN THE US AND 675 IN CANADA INVESTORS ALSO WILL BENEFIT FROM ANY RISE IN THE ADT SHARE PRICE TO A MAXIMUM 1260 A SHARE UPON MATURITY LAIDLAW WILL HAVE THE OPTION OF EXCHANGING THE DEBENTURES FOR CASH FOR ALL OF ITS ADT SHARES OR FOR NEW CLASS B SHARES OF LAIDLAW ON THE NEW YORK STOCK EXCHANGE LAIDLAW CLASS B SHARES CLOSED YESTERDAY AT 725 UP 125 CENTS ADT SHARES CLOSED AT 875 DOWN 125 CENTS 9312140051 931214 SOFTWARE TOOLWORKS JAPAN PACT NOVATO CALIF SOFTWARE TOOLWORKS INC REACHED AN AGREEMENT WITH CLOSELY HELD SHIN SHIN CO OF JAPAN TO SELL JAPANESE AND ENGLISH VERSIONS OF SOFTWARE TOOLWORKS PRODUCTS TO THE JAPANESE RETAIL AND ORIGINALEQUIPMENT MANUFACTURING MARKETS OEM COMPANIES MAKE EQUIPMENT SOLD UNDER OTHER BRAND NAMES IN A NEWS RELEASE THE COMPUTERSOFTWARE COMPANY SAID THAT UNDER TERMS OF THE AGREEMENT SHIN SHIN WILL HAVE NONEXCLUSIVE RETAIL RIGHTS TO ITS ENTIRE PRODUCT LINE SOFTWARE TOOLWORKS ALSO SAID SHIN SHIN HAS THE EXCLUSIVE RIGHT TO TRANSLATE MANUFACTURE DISTRIBUTE AND MARKET EIGHT TOOLWORKS CDROMBASED MULTIMEDIA TITLES ON THE NASDAQ STOCK MARKET SOFTWARE TOOLWORKS SHARES CLOSED AT 975 DOWN 1375 OR 12 THE DROP FOLLOWED NEWS REPORTS OF A FEDERAL INDICTMENT IN A CASE INVOLVING COUNTERFEITS OF THE COMPANY'S PRODUCTS 9312140050 931214 MONDAY'S MARKETS INDUSTRIALS CLIMB 2376 TO RECORD BUT BROADER MARKET HAS SLUGGISH TREND BOND PRICES ARE OFF BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE CATAPULTED FURTHER INTO RECORD TERRITORY BUT THE BROADER STOCK MARKET CONTINUED TO LAG BOND PRICES FELL AND THE DOLLAR WAS MIXED THE DOW INDUSTRIALS SURGED 2376 POINTS TO 376443 STANDARD & POOR'S 500STOCK INDEX ROSE 177 TO 46570 BUT THE NASDAQ COMPOSITE INDEX SLID 102 TO 75972 A SERIES OF COMPUTERGUIDED BUY PROGRAMS GAVE THE INDUSTRIAL AVERAGE A SOLID JUMP NEAR THE CLOSE THE BLUECHIP INDEX WAS BOLSTERED MOSTLY BY GAINS IN ECONOMICALLY SENSITIVE STOCKS AND A SHARP ADVANCE BY INTERNATIONAL BUSINESS MACHINES IBM LEAPED 2 1/8 TO 57 3/8 ON NEWS THAT IT REACHED A TENTATIVE AGREEMENT TO SELL ITS FEDERAL SYSTEMS UNIT TO LORAL BUT ANALYSTS SAID THE INDUSTRIAL AVERAGE'S MOVE MASKED WEAKNESS IN OTHER PARTS OF THE MARKET PARTICULARLY IN SMALL STOCKS OVERALL MORE STOCKS FELL THAN ROSE AND THE NASDAQ COMPOSITE SANK AS TECHNOLOGY STOCKS CONTINUED TO SUFFER JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO SAID SOME OF THE RECENT SLUMP IN TECHNOLOGY ISSUES MAY BE LINKED TO THE APPROACHING YEAR END MANY PORTFOLIO MANAGERS ARE TAKING PROFITS IN THAT GROUP RECOGNIZING THAT IT WAS ONE OF THE BESTPERFORMING GROUPS FOR THE FIRST THREE QUARTERS HE SAID SOME ANALYSTS ARE WORRIED BECAUSE THE PRICES OF BLUE CHIPS AND SMALL STOCKS ARE MOVING IN OPPOSITE DIRECTIONS THE DIVERGENCE IS GETTING BIGGER AND THAT'S NOT A HEALTHY SITUATION FOR THE MARKET SAID WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO WHEN WE SEE THIS KIND OF DIVERGENCE ESPECIALLY AFTER A LONG BULL MARKET IT'S OFTEN A SIGN WE'RE DUE FOR SOME KIND OF CORRECTION ANALYSTS ATTRIBUTED SOME BOND MARKET WEAKNESS TO RECENT STRENGTH IN COMMODITIES PRICES GOLD CONTINUED TO CLIMB WITH FEBRUARYDELIVERY GOLD GAINING 370 TO 38860 AN OUNCE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 025 TO 11050 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 255 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1056 ISSUES FELL AND 991 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST NEARLY 3/8 POINT OR NEARLY 375 FOR EACH 1000 FACE AMOUNT TO YIELD 623 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17085 MARKS AND 10895 YEN COMPARED WITH 16965 MARKS AND 10920 YEN FRIDAY 9312140049 931214 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY RATIFIED A TREATY TO CREATE THE EUROPEAN ECONOMIC AREA TOUTED AS THE WORLD'S LARGEST FREETRADE ZONE WITH 375 MILLION PEOPLE AND GROSS NATIONAL PRODUCT OF 7 TRILLION THE TREATY TAKES EFFECT JAN 1 A YEAR BEHIND SCHEDULE IT EXTENDS MOST OF THE 12COUNTRY EC'S SINGLEMARKET LEGISLATION TO AUSTRIA ICELAND FINLAND NORWAY AND SWEDEN WHICH ARE MEMBERS OF THE SEVENNATION EUROPEAN FREE TRADE ASSOCIATION THE OTHER EFTA STATES SWITZERLAND AND LIECHTENSTEIN WITH STRONG ECONOMIC LINKS COULDN'T JOIN THE EEA AS SWISS VOTERS REJECTED THE TREATY IN DECEMBER 1992 NEXT YEAR A COMMITTEE WILL WORK ON LEGISLATION TO IMPLEMENT FULLY THE EC SINGLE MARKET'S GOALS IN THE PARTICIPATING EFTA COUNTRIES TO ACHIEVE FREE MOVEMENT OF PEOPLE GOODS SERVICES AND CAPITAL A 1991 EC COURT RULING REQUIRES SEPARATE COURTS FOR THE TWO GROUPS THUS APPLICATION OF SINGLEMARKET RULES SUCH AS IN SOME ANTITRUST CASES IN THE EFTA STATES WILL BE OVERSEEN BY AN EFTA AGENCY A NEW 405MILE RAILWAY DESIGNED TO TRANSPORT COAL FROM DATONG IN NORTHEASTERN CHINA TO THE QINHUANGDAO PORT HAS BEGUN OPERATING THE LINE WILL SUPPLY COAL TO FACTORIES IN BOOMING SOUTHERN AND EASTERN COASTAL AREAS AND BE USED TO SHIP EXPORTS GROWTH IN CHINA'S ECONOMY HAS OUTPACED THAT IN RAIL SERVICE WOEFULLY SHORT OF LINES FOR PASSENGER AND FREIGHT TRAFFIC CHINA PLANS TO SPEND 600 MILLION ON FOREIGN EQUIPMENT AND EXPERTISE TO MODERNIZE ITS RAIL SYSTEM IT INTENDS TO LAY 4092 MILES OF TRACK BY 1995 INCREASING THE COUNTRY'S TOTAL 13 TO 37000 MILES TAIWAN IS CONSIDERING LIFTING RESTRICTIONS TO ALLOW MORE FOREIGN BANKS TO SET UP BRANCHES BANKING REGULATORS PROPOSED REVISING THE RULES AS TAIWAN SEEKS TO ENTER THE GENERAL AGREEMENT ON TARIFFS AND TRADE NOW ONLY THREE FOREIGN BANKS A YEAR MAY ENTER TAIWAN AND THEN ONLY IN TAIPEI AND KAOHSIUNG THE PROPOSAL WOULD END LIMITS ON THE NUMBER OF NEW FOREIGN BANKS AND THEIR LOCATIONS FOREIGN BANKING OPERATIONS IN TAIWAN TOTAL 38 WITH COMBINED ASSETS OF 1362 BILLION THE GIANT KIROV TRACTOR FACTORY IN ST PETERSBURG RUSSIA WAS CLOSED UNTIL FEB 1 BECAUSE CUSTOMERS HAVEN'T PAID THEIR BILLS AND PRODUCTION OUTSTRIPPED SALES RUSSIAN FARMS OWE 8 MILLION TO THE KIROV PLANT WHICH HAS HUNDREDS OF TRACTORS IN UNSOLD INVENTORY THOUGH THE RUSSIAN GOVERNMENT HAS SOUGHT TO CUT OFF UNPROFITABLE ENTERPRISES' ACCESS TO CREDIT ONLY A FEW HAVE CLOSED OR DECLARED BANKRUPTCY OTHERS MANAGED TO NEGOTIATE CREDITS FROM THE STATE OR RUN UP DEBTS TO SUPPLIERS FRENCHMADE CAVIAR GOES ON SALE THIS WEEK FOR THE FIRST TIME IN TWO DECADES CAVIAR FROM STURGEON IN SOUTHWEST FRANCE HAD BEEN POPULAR UNTIL PRODUCTION ENDED TO PROTECT DWINDLING NUMBERS OF STURGEONS WITH THE HELP OF AGRICULTURE OFFICIALS IN THE BORDEAUX AREA IT TOOK A FISH FARMER JACQUES CARRE NINE YEARS OF FARMING STURGEON TO PRODUCE CAVIAR THE DELICACY IS PRICED AT 156 A POUND OUTPUT NEXT YEAR IS ESTIMATED TO TOTAL 440 POUNDS EUROPEAN COMMUNITY ENVIRONMENT MINISTERS DIVIDED ON DEALING WITH WASTE PACKAGING SUCH AS FASTFOOD WRAPPERS AND JUICE CARTONS WILL TRY TO FORGE A COMPROMISE THIS WEEK THAT COULD LET WILDLY VARYING NATIONAL POLICIES CONVERGE GRADUALLY THE EC COMMISSION'S PLAN UNVEILED IN JULY 1992 SET TWO 10YEAR TARGETS 90 OF ALL PACKAGING WOULD BE RECOVERED THROUGH RECYCLING COMPOSTING AND INCINERATION TO PRODUCE ENERGY AND 60 OF THE RECOVERED MATERIALS WOULD BE RECYCLED MOST EC STATES DEEMED THIS TOO AMBITIOUS AMID ACCUSATIONS THAT GERMANY'S TOUGH RECYCLING LAWS HAVE LED TO WASTE DUMPING IN NEIGHBORING STATES A COMPROMISE OFFERED THIS MONTH WOULD LOWER THE TARGETS TO BETWEEN 50 AND 60 FOR RECOVERY AND 25 AND 45 FOR RECYCLING THAT ANGERED DENMARK GERMANY AND THE NETHERLANDS WHICH COULD HAVE TO SCALE BACK THEIR RECOVERY PROGRAMS IT ALSO WORRIED POORER STATES SUCH AS GREECE WHICH CAN'T MEET EVEN THE LOWEST TARGETS BOTH SETS OF COUNTRIES COULD GET EXEMPTIONS A FIRE IN THE GAOFU TEXTILE CO TOY FACTORY AND DORMITORIES A TAIWANFUNDED VENTURE IN FUZHOU CHINA KILLED 60 WORKERS MOSTLY WOMEN AND INJURED A DOZEN UNDERSCORING LAX INDUSTRIAL SAFETY STANDARDS LAST MONTH 84 PEOPLE DIED IN A BLAZE IN A SHENZHEN JOINTVENTURE TOY FACTORY ABOUT 11000 MINERS IN BULGARIA MANY FACING LAYOFFS WENT ON STRIKE TO DEMAND THE GOVERNMENT RESTRUCTURE THE UNPROFITABLE INDUSTRY AND ALLOW FOREIGN INVESTMENT PAY BACK WAGES AND OFFER OTHER JOBS A WEEK AGO 17000 PIT WORKERS IN ANOTHER UNION WALKED OUT 9312140048 931214 BUSINESS BRIEF UHAUL INTERNATIONAL INC GENERAL MANAGERS OPPOSE OFFER FOR 17 PARTNERSHIPS THE GENERAL PARTNERS OF 17 PARTNERSHIPS MANAGED BY SHURGARD INC URGED THE REJECTION OF A 3095 MILLION ACQUISITION OFFER BY UHAUL INTERNATIONAL INC THE GENERAL PARTNERS INCLUDING SEATTLEBASED SHURGARD'S CONTROLLING SHAREHOLDER HAVE PROPOSED TO ROLL UP OR CONSOLIDATE THE PARTNERSHIPS INTO A PUBLICLY TRADE REALESTATE INVESTMENT TRUST IN A LETTER TO THE PARTNERSHIPS' LIMITED PARTNERS THE GENERAL PARTNERS SAID UHAUL'S CASH BID IS INFERIOR BECAUSE IT OFFERS LESS THAN THE NET ASSET VALUE OF THE PARTNERSHIPS SHARES OF THE CONSOLIDATED PARTNERSHIPS MEANWHILE COULD TRADE WELL ABOVE THEIR NET ASSET VALUE THE GENERAL PARTNERS CONTEND THE PARTNERSHIPS OWN 139 SELFSERVICE STORAGE CENTERS A BUSINESS IN WHICH PHOEXIXBASED UHAUL IS RAPIDLY EXPANDING UHAUL WHICH IS CONTROLLED BY THE SHOEN FAMILY THROUGH ITS AMERCO HOLDING COMPANY SAID IT WOULD PROCEED WITH ITS OFFER DESPITE THE GENERAL PARTNERS' RECOMMENDATION THE TRUCK AND TRAILER RENTAL COMPANY DEFENDED ITS BID AS SUPERIOR TO THE ROLLUP PROPOSAL CITING THE RISK THAT THE STOCK CREATED BY THE ROLLUP COULD TRADE BELOW THE PROPERTIES' NET ASSET VALUE 9312140047 931214 BUSINESS BRIEF FOREST OIL CORP FIRM AGREES TO BUY STAKE IN TEXAS NATURALGAS FIELD FOREST OIL CORP SAID IT AGREED TO BUY A 3565 WORKING INTEREST IN A SOUTHERN TEXAS NATURALGAS FIELD FOR 60 MILLION THE DENVER OIL AND NATURALGAS COMPANY WOULDN'T IDENTIFY THE SELLER OF THE STAKE IN THE LOMA VIEJA/MARTINEZ FIELD IN ZAPATA AND JIM HOGG COUNTIES FOREST SAID IT EXPECTS TO COMPLETE THE TRANSACTION WHICH WILL BRING ITS 1993 PROPERTIES PURCHASES TO 150 MILLION BY YEAR END SEPARATELY THE COMPANY SAID IT SIGNED A 50 MILLION CREDIT AGREEMENT WITH CHASE MANHATTAN CORP'S CHASE MANHATTAN BANK UNIT SECURED BY A MORTGAGE ON THE COMPANY'S EXISTING OIL AND GAS PROPERTIES AND RELATED ASSETS A COMPANY SPOKESMAN SAID AS MUCH AS 10 MILLION OF THAT CREDIT MIGHT BE USED FOR THE LOMA VIEJA/MARTINEZ FIELD PURCHASE WHILE THE REMAINDER WOULD BE USED FOR 1994 ACQUISITIONS AND FOR GENERAL CORPORATE PURPOSES ON THE NASDAQ STOCK MARKET FOREST SHARES CLOSED 39375 DOWN 125 CENTS 9312140046 931214 PRUDENTIAL INSURANCE AGENTS ARE FACING SEC INQUIRY INTO PARTNERSHIP SALES BY GREG STEINMETZ AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING LIMITEDPARTNERSHIPSALES BY INSURANCE AGENTS OF PRUDENTIAL INSURANCE CO OF AMERICA ACCORDING TO PEOPLE FAMILIAR WITH THE PROBE THE INQUIRY OPENS A NEW CHAPTER IN THE SEC'S INVESTIGATION OF THE PRUDENTIAL PARTNERSHIP SALES SCANDAL THE SEC AS REPORTED IS ALSO CONSIDERING FILING ADMINISTRATIVE PROCEEDINGS AGAINST AS MANY AS 15 CURRENT AND FORMER EMPLOYEES OF PRUDENTIAL'S BROKERAGE ARM PRUDENTIAL SECURITIES INC ACCORDING TO PEOPLE FAMILIAR WITH THE CASE IN THE INSURANCE INVESTIGATION THE SEC IS EXPLORING WHETHER PRUDENTIAL INSURANCE AGENTS IMPROPERLY SIDESTEPPED RULES FORBIDDING THEM FROM SELLING PARTNERSHIPS AND OTHER SECURITIES ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE SEC CONSIDERS THE INVESTIGATION OF THE INSURANCE AGENTS SECONDARY TO ITS INVESTIGATION OF THE PRUDENTIAL SECURITIES EMPLOYEES PEOPLE FAMILIAR WITH THE MATTER SAID THE SCOPE OF IT IS UNCLEAR IT MAY WELL BE A BOOKSANDRECORDS OR RECORDKEEPING ISSUE SAID AN INDIVIDUAL WITH KNOWLEDGE OF THE SEC INVESTIGATION THE SEC AS IS ITS CUSTOM DECLINED TO CONFIRM OR DENY THE EXISTENCE OF ANY PENDING PROBES THE INQUIRY FOLLOWS AN EARLIER INVESTIGATION BY THE OREGON DEPARTMENT OF CONSUMER AFFAIRS TWO YEARS AGO OREGON FOUND THAT ALTHOUGH PRUDENTIAL INSURANCE AGENTS LACKED THE PROPER LICENSE TO SELL PARTNERSHIPS AND OTHER SECURITIES THEY GOT AROUND THE RESTRICTION BY RECORDING THE TRANSACTIONS AS SALES OF MUTUAL FUNDS WHICH THEY WERE LICENSED TO SELL A STOCKBROKER WITH PRUDENTIAL SECURITIES WOULD THEN GET CREDIT FOR THE PARTNERSHIP SALE PRUDENTIAL LATER SETTLED WITH OREGON BY AGREEING TO DISCONTINUE THE JOINTMARKETING AGREEMENT BETWEEN THE INSURANCE AGENTS AND THE STOCKBROKERS IN OCTOBER THE SEC AND STATE REGULATORS REACHED A SETTLEMENT UNDER WHICH PRUDENTIAL SECURITIES AGREED TO PAY AT LEAST 371 MILLION IN FINES AND RESTITUTION INVOLVING THE BROKERAGE FIRM'S SALES PRACTICES IN PEDDLING ABOUT 8 BILLION OF PARTNERSHIPS TO 340000 INVESTORS IN THE 1980S PRUDENTIAL DENIED KNOWLEDGE OF THE LATEST SEC INVESTIGATION AT THE TIME WE SETTLED EVERYTHING WITH OREGON WE SHOWED THE SOLUTION TO THE SEC AND THEY CHOSE AT THAT TIME NOT TO DO ANYTHING SAID A SPOKESMAN FOR PRUDENTIAL SECURITIES THE SEC'S PROBE INTO INSURANCE AGENTS MAY EXTEND TO THE ACTIVITIES OF PRUDENTIAL AGENTS IN CONNECTICUT ACCORDING TO A MEMORANDUM SENT FROM THE OFFICE OF THE PRUDENTIAL DISTRICT MANAGER IN NORWICH CONN PAUL CIPRIANI THE MEMO SENT TO INSURANCE AGENTS AND SIGNED BY MR CIPRIANI'S ASSISTANT SAID WE JUST FOUND OUT THAT CONNECTICUT DISTRICT OFFICES ARE BEING VISITED BY SEC REGULATORS IN AN INTERVIEW MR CIPRIANI SAID THE SEC WANTS TO KNOW IN PART WHETHER THE BUSINESS CARDS OF INSURANCE AGENTS FOLLOW SECURITIES RULES GOVERNING ADVERTISING BUT A SPOKESMAN FOR PRUDENTIAL INSURANCE SAID THE MEMO IS MISTAKEN ABOUT THE SEC HE SAID CONNECUTICUT SECURITIES REGULATORS NOT THE SEC ARE CONDUCTING A ROUTINE INVESTIGATION INTO WHETHER PRUDENTIAL'S INSURANCE AGENTS ARE FOLLOWING STATE SECURITIES LAWS CONNECTICUT OFFICIALS COULDN'T BE IMMEDIATELY REACHED TO COMMENT MR CIPRIANI IS CONFUSED THE SPOKESMAN SAID HE TOLD US HE KNOWS NOTHING ON AN SEC INVESTIGATION THE SEC INVESTIGATION IS UNRELATED TO A CRIMINAL INQUIRY BY THE US ATTORNEY'S OFFICE IN MANHATTAN NY IN THE CRIMINAL MATTER FEDERAL REGULATORS LARGELY ARE SCRUTINIZING WHAT KNOWLEDGE AND LIABILITY PRUDENTIAL HAD IN ANY POSSIBLE WRONGDOING IN SETTING UP PRUDENTIAL SECURITIES PARTNERSHIPS UNLIKE CRIMINAL PROSECUTORS THE SEC HAS THE POWER TO LEVY SANCTIONS ON FIRMS AND INDIVIDUALS AND BAR THEM FROM DOING BUSINESS IN THE SECURITIES INDUSTRY 9312140045 931214 BUSINESS BRIEF ONEITA INDUSTRIES INC REVENUE IN FISCAL 1994 MAY GROW AS MUCH AS 10 ONEITA INDUSTRIES INC COULD SEE REVENUE GROWTH OF AS MUCH AS 10 IN FISCAL 1994 HERBERT J FLEMING PRESIDENT SAID ONEITA AN ANDREWS SC APPAREL MAKER REPORTED REVENUE OF 1776 MILLION AND A LOSS OF 3 MILLION OR 43 CENTS A SHARE FOR THE YEAR ENDED SEPT 30 COMPARED WITH REVENUE OF 2035 MILLION AND NET INCOME OF 78 MILLION OR 124 A SHARE A YEAR EARLIER THE RESULTS FOR THE JUSTCOMPLETED YEAR INCLUDE A PRETAX RESTRUCTURING CHARGE OF 75 MILLION TAKEN IN THE FISCAL THIRD QUARTER THE RESTRUCTURING WHICH WAS DRIVEN BY INCREASED COMPETITION AND PRICE CUTTING RESULTED IN THE ELIMINATION OF 500 OF THE COMPANY'S 3600 JOBS MR FLEMING SAID THE RECENTLY PASSED NORTH AMERICAN FREE TRADE AGREEMENT WILL BE A PLUS FOR HIS BUSINESS SINCE ONEITA IS ALREADY MANUFACTURING IN MEXICO AND THE AGREEMENT IS EXPECTED TO PROVIDE GREATER COST ADVANTAGES 9312140044 931214 BUSINESS BRIEF US LONG DISTANCE CORP SEC INQUIRY IS NOT EXPECTED TO MEAN REVISION OF RESULTS US LONG DISTANCE CORP SAID IT DOESN'T EXPECT A SECURITIES AND EXCHANGE COMMISSION INQUIRY TO FORCE THE SAN ANTONIO COMPANY TO REVISE ITS RESULTS THE LONGDISTANCE AND OPERATORSERVICES CONCERN SAID THE INFORMAL PROBE DEALS WITH ITS ACCOUNTING OF REVENUE AND RECEIVABLES US LONG DISTANCE SAID IT BELIEVES EVERYTHING BEING REVIEWED BY THE SEC HAS BEEN STATED CORRECTLY IN THE COMPANY'S FINANCIAL STATEMENTS WHEN IT DISCLOSED THE INQUIRY FRIDAY US LONG DISTANCE SAID IT WOULD POSTPONE A PLANNED OFFERING OF 16 MILLION SHARES UNTIL THE PROBE WAS COMPLETED AFTER PLUNGING 23 FRIDAY THE COMPANY'S STOCK YESTERDAY ROSE 375 CENTS TO 13875 IN NASDAQ STOCK MARKET TRADING SEPARATELY THE COMPANY SAID IT IS COOPERATING WITH A FORMAL SEC INVESTIGATION REGARDING TRADING IN THE SECURITIES OF BOTH US LONG DISTANCE AND VALUEADDED COMMUNICATIONS INC IN FEBRUARY US LONG DISTANCE SCRAPPED PLANS TO ACQUIRE VALUEADDED FOR AT LEAST 100 MILLION IN STOCK VALUEADDED SAID IT KNEW NOTHING OF THE STOCKTRADING INQUIRY 9312140043 931214 WHAT'S NEWS WORLDWIDE VIOLENCE ERUPTED AS ISRAEL'S PULLOUT DEADLINE WENT UNMET IN OCCUPIED LANDS MORE ISRAELI SOLDIERS WERE SENT TO PATROL THE TERRITORIES AS A PALESTINIAN MILITANT WAS KILLED IN A SUICIDE BOMB ATTACK AND TWO OTHERS DIED IN A SHOOTOUT WITH SOLDIERS AS THE DEADLINE PASSED FOR BEGINNING A TRANSFER OF POWER TO PALESTINIANS IN GAZA AND JERICHO ISRAEL'S RABIN INTENSIFIED THE GLOOM BY WARNING IT MIGHT TAKE LONGER THAN THE AGREEDUPON 10DAY DELAY TO BEGIN IMPLEMENTING THE PLAN THE PRIME MINISTER'S REMARKS ADDED TO THE UNCERTAINTY SURROUNDING THE ISRAELPLO PEACE ACCORD SIGNED IN SEPTEMBER PLO LEADER ARAFAT SAID IT WASN'T SURPRISING THAT OBSTACLES HAD ARISEN IN IMPLEMENTING THE AUTONOMY ACCORD BUT HE WARNED THAT LONG DELAYS COULD FATALLY UNDERMINE SUPPORT FOR THE PEACE PACT THE SUPREME COURT IMPOSED ANOTHER CONSTITUTIONAL RESTRAINT ON THE USE OF CIVILFORFEITURE LAWS IN DRUG PROSECUTIONS THE HIGH COURT IN A 54 DECISION IN A CASE FROM HAWAII RULED THAT THE FEDERAL GOVERNMENT MAY NOT SEIZE REAL ESTATE LINKED TO DRUG TRAFFICKING UNLESS THE OWNER FIRST GETS A COURT HEARING PRESIDENT CLINTON CHEERED RUSSIAN VOTERS' APPROVAL OF A NEW CONSTITUTION SUNDAY AND PROMISED THAT US SUPPORT FOR RUSSIAN DEMOCRACY AND REFORM WOULD CONTINUE BUT THE STRONG SHOWING OF ANTIYELTSIN CANDIDATES INCLUDING EXTREME NATIONALISTS AND COMMUNISTS CLEARLY ISN'T WHAT THE US EXPECTED A JUDGE IN MICHIGAN STRUCK DOWN THE STATE'S ABSOLUTE BAN ON HELPING SOMEONE COMMIT SUICIDE GIVING RETIRED PATHOLOGIST KEVORKIAN NEW GROUNDS FOR SEEKING DISMISSAL OF CHARGES AGAINST HIM KEVORKIAN'S LAWYER SAID THE DOCTOR WON'T END A 14DAYOLD JAILHOUSE HUNGER STRIKE DESPITE HIS HOSPITALIZATION SUNDAY FOR CHEST PAINS SERBS SHELLED MUSLIMLED FORCES IN NORTHERN BOSNIA IN AN APPARENT EFFORT TO CUT OFF LAND ROUTES TO TUZLA AN INDUSTRIAL TOWN THAT IS BOSNIA'S MAIN MUSLIM STRONGHOLD APART FROM SARAJEVO A UN OFFICIAL SAID SEVERAL HUNDRED THOUSAND CIVILIANS IN TUZLA ARE IN DANGER OF DYING THIS WINTER BECAUSE OF A SERB BLOCKADE OF AID CONVOYS RACIAL SEGREGATION IS SPREADING IN US PUBLIC SCHOOLS TO A DEGREE UNSEEN SINCE THE 1960S ACCORDING TO A STUDY BY THE HARVARD PROJECT ON SCHOOL DESEGREGATION THE STUDY FOUND THAT TWO OF EVERY THREE BLACK CHILDREN ATTENDED SCHOOLS WHERE MINORITIES WERE MORE THAN HALF OF THE STUDENT POPULATION DURING THE 199192 SCHOOL TERM CLINTON TOLD A CONFERENCE IN BRYN MAWR PA THAT SPENDING FOR MEDICAL ENTITLEMENT PROGRAMS IS GOING UP LIKE A ROCKET THE WAY TO DEAL WITH THE COSTS HE ASSERTED IS TO GO BACK AND HAVE COMPREHENSIVE HEALTHCARE REFORM RATHER THAN ADOPTING DEFICITREDUCTION PLANS THAT WOULD SQUEEZE THE MIDDLE CLASS THE FEDERAL ELECTION COMMISSION SAID IT IS ATTEMPTING TO SPEED UP INVESTIGATIONS OF ALLEGED CAMPAIGN MISCONDUCT BY DROPPING 137 OF ITS MORE THAN 400 CASES THE CASES ARE BEING CLOSED BECAUSE THEY ARE RELATIVELY INSIGNIFICANT OR DATE BACK TO BEFORE THE 1990 ELECTION CYCLE FEC CHAIRMAN THOMAS SAID SEVEN SHUTTLE ASTRONAUTS RETURNED TO EARTH AFTER AN 11DAY MISSION TO REPAIR THE HUBBLE SPACE TELESCOPE THE SHUTTLE ENDEAVOUR LANDED AT THE KENNEDY SPACE CENTER IN FLORIDA NASA OFFICIALS WON'T KNOW WHETHER THE TELESCOPE IS FUNCTIONING PROPERLY FOR TWO TO THREE MONTHS KAZAKHSTAN PLEDGED TO DISMANTLE ITS ARSENAL OF 1400 NUCLEAR WARHEADS AND THE US PROMPTLY PROMISED 84 MILLION TO HELP DESTROY THE WEAPONS KAZAKH LEGISLATORS ENDORSED THE NUCLEAR NONPROLIFERATION TREATY AFTER AN APPEAL FROM PRESIDENT NAZARBAYEV WHO HAD JUST CONCLUDED A MEETING WITH VICE PRESIDENT GORE IN ALMAATA THE US WITHDREW MORE THAN 5000 TROOPS DEPLOYED OFF THE COAST OF SOMALIA REDUCING THE OFFSHORE AMERICAN PRESENCE TO 3833 US OFFICIALS SAID MEANWHILE 650 US COMBAT TROOPS INSIDE SOMALIA WERE PREPARING TO LEAVE LATE THIS WEEK THE US PLANS TO REMOVE ABOUT 2500 OF ITS 8200 TROOPS FROM THE COUNTRY BY CHRISTMAS TURKISH JETS POUNDED SUSPECTED KURDISH GUERRILLA HIDEOUTS INSIDE IRAQ WHILE SOLDIERS BATTLED KURDS ON THE GROUND IN TURKEY THIRTYSEVEN KURDISH REBELS AND FIVE TURKISH SOLDIERS REPORTEDLY WERE KILLED 9312140042 931214 BUSINESS BRIEF IRG TECHNOLOGIES INC COMPUTERPARTS DISTRIBUTOR POSTS FOURTHPERIOD LOSS IRG TECHNOLOGIES INC POSTED A FISCAL FOURTHQUARTER LOSS AND REVISED ITS THIRDQUARTER RESULTS TO RECORD A CHARGE THE COMPUTERPARTS DISTRIBUTOR'S STOCK DOWN SHARPLY FROM ITS 750ASHARE PRICE IN ITS INITIAL PUBLIC OFFERING IN MAY TUMBLED ON THE NEWS IT FELL 1125 OR 36 TO 2 IN NASDAQ STOCK MARKET TRADING IN THE QUARTER ENDED SEPT 30 THE RICHARDSON TEXAS COMPANY HAD A LOSS OF 55 MILLION OR 70 CENTS A SHARE IT HAD PROFIT OF 655000 A YEAR EARLIER SALES ROSE 27 TO 476 MILLION FROM 376 MILLION THE COMPANY DIDN'T REPORT PERSHARE FIGURES FOR THE YEAREARLIER PERIOD IRG SAID ITS PROFIT MARGIN DECLINED BECAUSE OF COMPETITION IN THE MARKET FOR DATASTORAGE DEVICES THE COMPANY SAID IT WILL RECORD A 15 MILLION FISCAL THIRDQUARTER CHARGE TO COVER MARKETING AND PRODUCT ALLOWANCES COMPANY OFFICIALS COULDN'T BE REACHED IRG WAS SUED IN AUGUST BY SHAREHOLDERS WHO ALLEGED THE COMPANY MADE FALSE AND MISLEADING STATEMENTS IN CONNECTION WITH ITS INITIAL PUBLIC OFFERING 9312140040 931214 RAWSTEEL PRODUCTION FELL 03 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 03 LAST WEEK TO 1850000 TONS FROM 1856000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 92 FROM THE 1694000 TONS PRODUCED A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9312140039 931214 CORRECTIONS & AMPLIFICATIONS TABLES FOR THE ABREAST OF THE MARKET AND YOUR MONEY MATTERS COLUMNS WERE INADVERTENTLY REVERSED IN SOME EDITIONS YESTERDAY INTERMEDIA COMMUNICATIONS OF FLORIDA INC'S 21 MILLION SHARES WERE PRICED ON NOV 16 AT 1450 EACH YESTERDAY'S SECURITIES OFFERING CALENDAR INCORRECTLY STATED THAT THE COMPANY PLANNED TO SELL THE 21 MILLION SHARES THIS WEEK 9312140037 931214 ECONOMY REICH WEIGHS RISE IN PAYROLL TAX TO FUND TRAINING BY KEVIN G SALWEN AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH IS CONSIDERING PROPOSING AN INCREASE IN THE FEDERAL PAYROLL TAX TO HELP EXPAND FEDERAL WORKERTRAINING PROGRAMS ADMINISTRATION AND BUSINESS OFFICIALS SAID LAST WEEK MR REICH DISCUSSED WITH BUSINESS GROUPS POSSIBLE WAYS TO PAY FOR THE LABOR DEPARTMENT'S DISLOCATEDWORKER PROGRAM IN WHICH PERMANENTLY LAIDOFF EMPLOYEES WOULD BE ELIGIBLE FOR AS MANY AS 18 MONTHS OF JOB TRAINING AS WELL AS REGULAR UNEMPLOYMENT BENEFITS THE PROGRAM IS EXPECTED TO BE PROPOSED FORMALLY TO CONGRESS NEXT MONTH THE DISLOCATEDWORKER PLAN WHICH HAS BEEN KICKING AROUND CAPITOL HILL FOR MONTHS WOULD REQUIRE AN ADDITIONAL 2 BILLION IN TRAINING FUNDS AND 1 BILLION IN BENEFITS ACCORDING TO PEOPLE FAMILIAR WITH IT NO FINANCING SCHEME HAS BEEN SENT TO THE WHITE HOUSE WHERE SOME OF PRESIDENT CLINTON'S POLITICAL AND BUDGET ADVISERS ARE RELUCTANT TO PROPOSE ANY TAX INCREASE NEXT YEAR PARTICULARLY ONE THAT COULD BE CRITICIZED AS A TAX ON HIRING LATE YESTERDAY LABOR DEPARTMENT SPOKESWOMAN MARY MEAGHER SAID MR REICH HADN'T DECIDED WHETHER TO PROPOSE THE TAX INCREASE THE PROPOSAL IS ONE OF MANY WHICH HAVE BEEN DISCUSSED SHE SAID IT'S THE TIME OF THE YEAR WHEN EVERYTHING IS ON THE TABLE UNDER THE FEDERAL UNEMPLOYMENT TAX ACT OF 1939 OR FUTA EMPLOYERS IN MOST STATES MUST PAY 08 OF THE FIRST 7000 OF PAYROLL IN CERTAIN CASES THE TAX CAN REACH 62 ONLY STATES THAT HAVE BORROWED MONEY FROM WASHINGTON TO PAY FOR JOBLESS BENEFITS CAN IMPOSE THE LEVY WHICH APPLIES ONLY TO EMPLOYERS OF WORKERS ELIGIBLE FOR UNEMPLOYMENT BENEFITS ACCORDING TO A PARTICIPANT IN ONE OF MR REICH'S MEETINGS WITH BUSINESS GROUPS THE LABOR SECRETARY HAS DISCUSSED APPLYING THE TAX TO THE FIRST 20000 OF WAGES AND LOWERING THE RATE 9312140036 931214 REVIEW & OUTLOOK EDITORIAL RUSSIA'S NEW GAME MAYBE A STRONG PRESIDENCY IN RUSSIA ISN'T SUCH A BAD THING AFTER ALL AS SUNDAY'S ELECTION RETURNS TRICKLED IN AN ERRATIC DEMAGOGUE NAMED VLADIMIR ZHIRINOVSKY SEEMED TO BE THE BIGGEST WINNER IN THE PARLIAMENTARY RACES A GREAT MANY RUSSIANS AND OUTSIDERS WERE THANKFUL THAT THE NEW RUSSIAN CONSTITUTION WHICH VOTERS APPROVED LIMITS PARLIAMENTARY POWER AND GIVES BORIS YELTSIN THE INSTRUMENTS HE NEEDS TO CONTINUE HIS ECONOMIC AND POLITICAL REFORMS IN ALL OF THE HULLABALLOO OVER MR ZHIRINOVSKY IT SHOULD BE REMEMBERED THAT HE AND HIS FELLOW LIBERAL DEMOCRATIC CANDIDATES WON ONLY ENOUGH VOTES TO BE A SIZABLE FACTION IN THE 450MEMBER STATE DUMA THE LOWER HOUSE OF A NEW BICAMERAL LEGISLATURE BY CONTRAST SOME 60 OF THOSE WHO VOTED APPROVED THE CONSTITUTION THEREBY GRANTING MR YELTSIN A FURTHER POWERFUL MANDATE INDEED THE MAIN EVENT WAS THE CONSTITUTION WHICH ESTABLISHES A NEW BODY OF POSTSOVIET LAW FOR THE NEARLY 150 MILLION CITIZENS OF THE RUSSIAN FEDERATION IT UPHOLDS CIVIL RIGHTS THE RIGHT TO OWN LAND AND OTHER PRIVATE PROPERTY AND THE RIGHT TO REGULAR DEMOCRATIC MULTIPARTY ELECTIONS IN THE FUTURE THE VOTERS MAY HAVE ELEVATED A POWERHUNGRY PARLIAMENTARIAN TO CELEBRITY STATUS BUT BY APPROVING THE CONSTITUTION THEY TOOK STEPS TO INOCULATE THEMSELVES AGAINST THE KINDS OF TYRANTS WHO'VE RULED THEM IN THE PAST RUSSIANS WILL HAVE TO GET USED TO POLITICS AND MR ZHIRINOVSKY CLEARLY IS A POLITICIAN OF SOME SKILL IN THE GORBACHEV ERA HE WON A FOLLOWING BY CAMPAIGNING AGAINST COMMUNISM AND FOR PRIVATE ENTERPRISE NOW SENSING THE DIMINISHED MORALE IN A NATION THAT HAS LOST ITS SENSE OF GREATNESS HE PLAYS THE CHORDS OF RUSSIAN NATIONALISM MILITARY MIGHT AND IMPERIAL CONQUEST WITH SUCH AN APPEAL HE DREW TO THE POLLS A GREAT MANY RUSSIANS WHO WANTED TO REGISTER A PROTEST AGAINST THE SHOCKS THEY HAVE FELT WITH THE COLLAPSE OF THE OLD SOVIET SYSTEM BUT THE OVERWHELMING MAJORITY OF THOSE WHO VOTED WENT WITH MR YELTSIN APPROVAL OF HIS CONSTITUTION WAS THE CULMINATION OF A STRUGGLE IN WHICH HE HAS GONE TO THE PEOPLE AT EVERY CRUCIAL POINT AND RECEIVED THE MORAL AUTHORITY HE NEEDED TO PRESS AHEAD THERE IS NOW A NEW RUSSIA WITH A NEW SYSTEM OF GOVERNMENT THAT IS NOT TO SAY THAT THE WAY AHEAD WILL BE EASY MR YELTSIN AS PRESIDENT IS EMPOWERED TO NAME THE CHAIRMAN AND DEPUTY CHAIRMEN PRIME MINISTER AND MINISTERS OF THE RUSSIAN GOVERNMENT AND THE CHAIRMAN OF THE CENTRAL BANK AS A CHECK ON PRESIDENTIAL POWER THESE APPOINTMENTS MUST BE CONFIRMED BY THE DUMA THE PRESIDENT ALSO APPOINTS HIGH COURT JUDGES AND THE PROSECUTOR GENERAL SUBJECT TO CONFIRMATION BY THE COUNCIL OF THE FEDERATION OR UPPER HOUSE MADE UP OF TWO MEMBERS EACH FROM RUSSIA'S REGIONS AND REPUBLICS IF THE STATE DUMA CONSISTENTLY REFUSES TO CONFIRM A PRIME MINISTER THE PRESIDENT ULTIMATELY CAN DISSOLVE THE DUMA AND CALL NEW ELECTIONS THUS THE PRESIDENT AND HIS GOVERNMENTAL APPOINTEES ARE IN CHARGE OF POLICY THE SCARY MR ZHIRINOVSKY AND HIS ILK WILL BE ABLE TO MAKE LOUD NOISES IN PARLIAMENT BUT THEY WILL NOT BE RUNNING THE GOVERNMENT STILL THE BEST COURSE WOULD BE FOR THE FRACTIOUS DEMOCRATS TO RECOGNIZE THE ZHIRINOVSKY PHENOMENON AS A COLD SPLASH OF REALITY IT'S TIME TO STOP PLAYING AT THE POLITICS OF PERSONALITY AND JOIN TO GET ON WITH THE SERIOUS WORK OF NATIONBUILDING BUT IN THE EVENT OF CONFLICTS BETWEEN THE PARLIAMENT AND THE PRESIDENCY OF WHICH THERE WILL BE MANY POWER TILTS IN FAVOR OF THE PRESIDENCY GIVEN THE LACK OF DEMOCRATIC TRADITIONS IN RUSSIA THIS WOULD APPEAR TO BE THE ONLY KIND OF SYSTEM WITH MUCH CHANCE OF WORKING THE LAST PARLIAMENT WHICH MR YELTSIN DISBANDED WAS MARKED BY THE ABSENCE OF A SPIRIT OF COMPROMISE AND A RECOGNITION OF THE NATION'S NEEDS IN PARTICULAR ITS NEED FOR A STABLE CURRENCY THE NEW SYSTEM WILL HAVE SERIOUS FLAWS BOTH HOUSES OF THE NEW LEGISLATURE WILL HAVE THE POWER TO ISSUE DECREES SO THERE WILL BE SOME CONTINUATION OF THE WAR OF DECREES THAT CREATED SO MUCH CONFUSION DURING MR YELTSIN'S CONTESTS WITH THE PREVIOUS PARLIAMENT AND OF COURSE SOME DEMAGOGUE MIGHT SOMEDAY CAPTURE THE PRESIDENCY BUT GIVEN THE CLEARER DEFINITION OF INDIVIDUAL RIGHTS IN THE NEW CONSTITUTION AND THE RENEWED AUTHORITY OF THE CONSTITUTIONAL COURT IT SEEMS LIKELY THAT RUSSIA WILL BE ABLE TO MOVE TOWARD A SET OF LAWS THAT HAVE SOME WEIGHT AND CLARITY TO BE SURE THE NEW PARLIAMENTARIANS WILL BE FULL OF THEMSELVES ACTUALLY GOING TO THE PEOPLE AND WINNING THEIR SUPPORT IS SOMETHING FEW POLITICIANS HAVE EXPERIENCED IN RUSSIA IT IS A HEADY FEELING TO KNOW THAT YOU ACTUALLY WON APPROVAL FROM A BODY OF VOTERS OVER TIME THE PARLIAMENT WILL NO DOUBT ACCRUE MORE POWER AS PARLIAMENTS TEND TO DO BUT THEN THAT'S WHAT DEMOCRACY IS ALL ABOUT BEAR IN MIND THAT THIS IS THE FIRST REAL ELECTION THE RUSSIANS HAVE BEEN ABLE TO PARTICIPATE IN SINCE VOTES BY A RESTRICTED FRANCHISE BEFORE THE REVOLUTION IN 1917 IN ITS OWN STUMBLING WAY RUSSIA IS BUILDING A DEMOCRACY 9312140035 931214 ENTERPRISE GOVERNMENT WATCH DENTISTS BATTLING STATES' LICENSINGTEST REQUIREMENTS BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL DENTISTS TRY TO EXTRACT LICENSING CONCESSIONS FROM SUNBELT STATES FRUSTRATED DENTISTS AROUND THE US ARE PUSHING FOR THE RIGHT TO MOVE THEIR PRACTICES FROM ONE STATE TO ANOTHER WITHOUT HAVING TO TAKE COMPLICATED WRITTEN EXAMS OR PERFORM CLINICAL TESTS ON PATIENTS' TEETH THE DENTAL SOCIETY OF THE STATE OF NEW YORK HAS LAUNCHED A LEGAL AND CONGRESSIONAL LOBBYING DRIVE TO BACK THE DENTISTS' CAUSE KNOWN AS LICENSURE BY CREDENTIALS TODAY 29 STATES AUTOMATICALLY GRANT LICENSES TO ESTABLISHED DENTISTS IN GOOD STANDING FROM OTHER STATES UP FROM 22 FIVE YEARS AGO THE AMERICAN DENTAL ASSOCIATION SAYS BUT OTHER STATES MANY IN THE SOUTH AND SOUTHWEST ENFORCE THEIR TESTING REQUIREMENTS DISGRUNTLED OUTOFSTATE DENTISTS SEE THOSE RULES AS ANOTHER EFFORT BY STATES TO PROTECT LOCAL PROFESSIONAL PRACTICES AND SMALL BUSINESSES AGAINST OUTSIDERS FLORIDA FOR INSTANCE INSISTS THAT LICENSED OUTOFSTATE DENTISTS TAKE THE SAME TESTS REQUIRED OF UNLICENSED DENTALSCHOOL GRADUATES NEW YORK DENTIST JEFFREY DORFMAN SAYS GETTING A LICENSE TO PRACTICE IN THE SUNSHINE STATE COST HIM 40000 IN EXPENSES AND LOST TIME THE 34YEAROLD DR DORFMAN TOOK TWO WEEKS OFF FROM HIS FIFTH AVENUE PRACTICE IN DECEMBER 1992 TO PROVE HIMSELF IN FLORIDA HE SPENT THE FIRST WEEK TAKING A 2000 PREP COURSE LIKE MANY OTHER OUTOFSTATE DENTISTS DR DORFMAN SAYS FLORIDA PUT HIM THROUGH THE HUMILIATION OF ASKING PEOPLE ON THE STREET IF THEY HAD ANY CAVITIES OR GUM DISEASE THAT HE COULD TREAT AS PART OF THE LICENSING EXAM HE SOLICITED PATIENTS AT BUS STOPS AND SUPERMARKET ENTRANCES WITH FLYERS THAT READ I NEED DENTAL PATIENTS GET PAID 200 FOR YOUR TIME HE FOUND THREE BUT THE EXAMINERS REJECTED THEM WITHOUT EXPLANATION SO DR DORFMAN HAD TO FLY TO FLORIDA AGAIN IN JUNE THOUGH HE FINALLY GOT HIS LICENSE HE IS BITTER ABOUT THE ORDEAL IT'S AN ANTICOMPETITIVE SYSTEM DESIGNED TO KEEP OUTOFSTATE DENTISTS OUT HE SAYS FLORIDA REGULATORY OFFICIALS DEFEND THEIR TESTING SYSTEM AS VALID AND RELIABLE AND SAY THE STATE HAS NO PLANS TO ADOPT LICENSURE BY CREDENTIALS THAT ATTITUDE ANGERS THE NEW YORK DENTAL SOCIETY RATHER THAN PROTECTING THE PUBLIC FLORIDA OFFICIALS ARE PROTECTING THE POCKETBOOKS OF THEIR OWN DENTISTS CONTENDS EDWARD DOWNES A DENTAL SOCIETY OFFICIAL DR DOWNES SAYS HIS GROUP IS LOBBYING CONGRESS TO PASS A FREEDOMOFMOVEMENT LAW AND IS PREPARING A COURT CHALLENGE TO LICENSING PROCEDURES IN AN UNSPECIFIED SUNBELT STATE A PAUCITY OF TOILETS COULD LET SMALL FIRMS FLUSH AWAY CARES IN HONOLULU MANY STATE AND FEDERAL LAWS EXEMPT SMALL COMPANIES BASED ON THE SIZE OF THEIR WORK FORCE WITH THE THRESHOLD USUALLY SET BETWEEN 25 AND 100 EMPLOYEES BUT SMALL BUSINESSES IN HAWAII'S CAPITAL ARE LOBBYING FOR A MORE UNUSUAL DEFINITION OF A SMALL BUSINESS ANY ENTERPRISE WITH FOUR OR FEWER TOILETS INCLUDING URINALS THE DRIVE STARTED WITH A 1992 CITY WATERCONSERVATION ORDINANCE REQUIRING BUSINESSES TO RETROFIT THEIR PLUMBING TO REDUCE WATER FLOW IT EXEMPTS COMMERCIAL PROPERTIES USING LESS THAN 15000 GALLONS OF WATER A MONTH BUT SOME SMALLBUSINESS OWNERS WANT TO CHANGE THE CEILING TO THE NUMBER OF TOILETS PER ESTABLISHMENT NO MATTER HOW MUCH WATER FLOWS INTO THE BUILDING WHERE THE BUSINESS IS LOCATED THE CITY COUNCIL WAS PREPARED TO ADOPT THE TOILET STANDARD UNTIL THE BOARD OF WATER SUPPLIES VOICED OBJECTIONS SAYS STEVE HOLMES CHAIRMAN OF THE COUNCIL'S PUBLIC WORKS COMMITTEE NOW HE ADDS THE IDEA IS DEAD BUT BILL SULLIVAN OWNER OF A BEAUTY SALON AND A SMALLBUSINESS ACTIVIST VOWS TO PRESS ON HE THINKS CITY FATHERS' TIMING AND APPROACH ARE ALL WET THEY GOT CAUGHT WITH THEIR KNICKERS DOWN HE SAYS REGULATORS STUN NEW JERSEY CONTRACTORS WITH A PROUTILITY RULING CITING PUBLICHEALTH AND SAFETY CONCERNS THE STATE BOARD OF REGULATORY COMMISSIONERS LAST WEEK REJECTED KEY ELEMENTS OF AN ADMINISTRATIVE LAW JUDGE'S RULING THE RULING WOULD HAVE REQUIRED PUBLIC SERVICE ELECTRIC & GAS CO TO CHARGE HOURLY RATES FOR A RANGE OF FREE SERVICES FROM ADJUSTING FAN BELTS TO RELIGHTING PILOT LIGHTS NOW SUBSIDIZED BY ALL RATEPAYERS THE RULING ALSO WOULD HAVE FORCED THE UTILITY A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP INC TO STOP STUFFING BILLS WITH INSERTS PUBLICIZING FREE OR LOWCOST SERVICES THAT COMPETE WITH SERVICES OFFERED BY SMALL COMPANIES IF THE BOARD'S ACTION STANDS IT WOULD SET THE COURSE FOR THE DESTRUCTION OF AN ENTIRE INDUSTRY OF SMALL PRIVATE HEATING AIRCONDITIONING AND PLUMBING CONTRACTORS SAYS JEROME ENIS SPOKESMAN FOR THE NEW JERSEY COALITION FOR FAIR COMPETITION THE ASSOCIATION OF CONTRACTING FIRMS INITIATED THE LEGAL PROCEEDINGS AGAINST PSE&G IN DECEMBER 1992 HE SAYS HIS GROUP WILL SOON APPEAL THE BOARD'S DECISION TO A STATE COURT THE COALITION ARGUES THAT THE UTILITY NEW JERSEY'S BIGGEST SUBSIDIZES ITS SERVICE CALLS WITH RATEPAYERS' MONEY TO THE TUNE OF 125 AN HOUR A PSE&G SPOKESMAN CONFIRMS THAT FIGURE BUT SAYS THE UTILITY DOESN'T ENGAGE IN UNFAIR COMPETITION AND ISN'T SERIOUSLY HARMING PRIVATE CONTRACTORS MEANWHILE ANOTHER NEW JERSEY ENTREPRENEUR HAS COMPLAINED TO THE STATE REGULATORY BOARD ABOUT A PSE&G PLAN TO PROMOTE THE USE OF NATURAL GAS IN MOTOR VEHICLES UNDER THE EXPERIMENTAL PROGRAM THE UTILITY WOULD SELL NATURAL GAS AT A DISCOUNT TO COMPANIES THAT WOULD COMPRESS IT FOR SALE AT GASOLINE STATIONS PSE&G ALSO WOULD OFFER 1000 REBATES TO THOSE WHO CONVERT THEIR CARS TO NATURAL GAS BUT JONATHAN WELSH PRESIDENT OF WELSH TECHNOLOGIES INC OF RIVER EDGE NJ OBJECTS TO PSE&G'S PROPOSAL TO USE RATEPAYERS' MONEY TO SUBSIDIZE ITS PROGRAM WELSH TECHNOLOGIES MAKES A DEVICE THAT IT SAYS SAVES ENERGY AND REDUCES EXHAUST EMISSION BY ENABLING ORDINARY CAR AND TRUCK ENGINES TO RUN ON A COMBINATION OF GASOLINE AND ALTERNATIVE FUELS PSE&G AND OTHER UTILITIES ARE TRYING TO FORCE COMPANIES LIKE ME OUT OF BUSINESS SO THAT THEY CAN HAVE THE TERRITORY FOR THEMSELVES MR WELSH ARGUES PSE&G'S SPOKESMAN DENIES THE ASSERTION HE SAYS THE PROGRAM'S COST IS SMALL AND THE POTENTIAL ENVIRONMENTAL PAYOFF HUGE BUT HE CONCEDES THAT AUTOMOBILES ARE A POTENTIAL NEW MARKET THAT WE WANT TO EXPLORE SMALL TALK THE CHIEF EXECUTIVE OFFICERS OF FASTGROWTH COMPANIES RATE GOVERNMENT A BIGGER IMPEDIMENT TO GROWTH THAN ECONOMIC PROBLEMS CONCLUDES A COOPERS & LYBRAND SURVEY OF 395 SUCH CONCERNS A MICHIGAN LEGISLATOR SEEKS REPEAL OF A 1913 STATE LAW BARRING FORTUNETELLING FOR A FEE SAYING STOCK ANALYSTS AND WEATHER FORECASTERS TECHNICALLY MIGHT BE IN VIOLATION 9312140034 931214 REVIEW & OUTLOOK EDITORIAL RUSSIA'S NEW EXTREMIST DURING THE REIGN OF PETER THE GREAT A RUMOR SWEPT RUSSIA THAT WESTERN CATHOLICS WERE PREPARING TO MARCH ON RUSSIA TO CONVERT THE ORTHODOX CONGREGATIONS OF BELIEVERS GATHERED IN CHURCHES TO DEFEND AGAINST WESTERNIZATION AND WORKED THEMSELVES INTO SUCH A FRENZY SO THE LEGEND GOES THAT THEY BURNED THEIR CHURCHES AND THEMSELVES INSIDE WESTERNERS HAVE NEVER KNOWN WHAT TO MAKE OF RUSSIAN NATIONALISM AND XENOPHOBIA THE RUSSIANS THEMSELVES HAVE SURROUNDED THE ISSUE IN A THICK SHROUD OF ROMANTIC MYSTICISM SO IT IS CERTAIN THAT THE RISE OF A NATIONALIST POLITICIAN SUCH AS VLADIMIR ZHIRINOVSKY IS BOUND TO RAISE FEARS OF BROWNSHIRTS ON THE MARCH MR ZHIRINOVSKY IS AN EXTREMELY NOXIOUS CHARACTER BUT HIS SUPPORTERS WERE VOTING FOR AN ATTITUDE AS MUCH AS A SET OF POLICIES THE DEMOCRATS WERE AN AMORPHOUS MUDDLE IN THIS CAMPAIGN THE COMMUNISTS WERE STALE MR ZHIRINOVSKY WAS AT LEAST FRESH DIFFERENT SCATHING AND WITTY HE REPRESENTS THE POLITICS OF VEHEMENCE AND CLARITY WHY SHOULD WE CREATE SUFFERING FOR OURSELVES WE SHOULD CREATE SUFFERING FOR OTHERS IS ONE OF HIS TYPICAL SOUND BITES THE DEMOCRATS ENHANCED HIS REPUTATION AS THE ONE TRUE OUTSIDER BY INTERRUPTING PROGRAMMING DURING THE LAST WEEK AND RUNNING A DOCUMENTARY DENOUNCING HIM THIS IS NOT TO SAY THE SUBSTANCE OF HIS IDEAS MEANS NOTHING IN A NATION IN WHICH MODERNIZATION HAS ALWAYS MEANT WESTERNIZATION THERE HAS BEEN A STRONG RUMP OF XENOPHOBIA MR ZHIRINOVSKY VAGUELY PROMISES TO REVERSE GORBACHEV'S AND YELTSIN'S POLICIES OF GIVING AWAY EVERYTHING TO THE WEST IN A PRESCIENT PROFILE BY THE JOURNAL'S ELISABETH RUBINFIEN LAST MARCH HE SPOKE GRANDILOQUENTLY ABOUT RETURNING RUSSIA TO ITS 1865 BORDERS WHICH WOULD INCLUDE ALASKA HE ONCE TOLD AN ARMENIAN NEWSPAPER I'LL STRANGLE YOUR INDEPENDENCE WITH A FAMINE I WON'T SEND A SINGLE SOLDIER INTO YOUR AREA I'LL WAIT WHILE YOU KILL EACH OTHER A LOT OF THIS IS NOT TO BE TAKEN LITERALLY HE'S PLAYING TO THE CONTEMPT MANY PEOPLE FEEL FOR MEALYMOUTHED POLITICIANS HE IS ABOVE ALL POLITICALLY ASTUTE HE STAYED AWAY WHEN THE LAST BUNCH OF EXTREMISTS HOLED THEMSELVES UP IN THE PARLIAMENT BUILDING OVER THE YEARS HIS IMAGE HAS SHIFTED SUBTLY WITH THE TIMES HE ENDORSED THE CONSTITUTION AND ROUGHLY FAVORS FREE ENTERPRISE HIS ABILITY TO RAISE MONEY AND ATTRACT MEDIA COVERAGE IS WIDELY ADMIRED BUT NEVER EXPLAINED HIS MOST IMPORTANT SHORTTERM IMPACT MAY BE ON THE YELTSINITES WHO WILL STILL BE RUNNING THE COUNTRY THE DEMOCRATS INCLUDING FOREIGN MINISTER ANDREI KOZYREV SAID SOME STRIDENTLY NATIONALISTIC THINGS DURING THE LAST WEEKS OF THE CAMPAIGN MR ZHIRINOVSKY STRONGLY ADVOCATES WEAPONS SALES TO IRAQ AND LIBYA RUSSIAN OFFICIALS WON'T WANT TO LOOK LIKE LACKEYS TO THE WEST BUT IN THE END A RAVER LIKE MR ZHIRINOVSKY MAY NOT BE A BAD FOIL FOR THE YELTSINITES THE VAST MAJORITY OF RUSSIANS HAVE NO TASTE FOR THIS STUFF LEAST OF ALL THE YOUNG PEOPLE WHO DIDN'T VOTE THIS TIME BUT WHO WILL PAY ATTENTION TO POLITICS IF THEIR TRADING RELATIONS WITH THE WEST ARE THREATENED XENOPHOBIA BASED ON GHOSTS IS NOT STRONG ENOUGH TO TAKE OVER THE COUNTRY BY THE WAY THE WESTERN MISSIONARIES WHO CAUSED SO MUCH FEAR IN PETER THE GREAT'S RUSSIA NEVER CAME IT WAS A FALSE RUMOR 9312140033 931214 MARKETING & MEDIA ANHEUSERBUSCH PLANS BEERPRICE CUTS TO HELP REVIVE ITS SALES IN CALIFORNIA BY RICHARD GIBSON AND MARJ CHARLIER STAFF REPORTERS OF THE WALL STREET JOURNAL ANHEUSERBUSCH COS THE NATION'S LARGEST BREWER IS TELLING DISTRIBUTORS IT PLANS PRICE REDUCTIONS TO HALT A BEERSALES DECLINE IN ITS BIGGEST MARKET CALIFORNIA STARTING EARLY NEXT YEAR THE COMPANY WILL CUT PRICES ON ITS BESTSELLING PREMIUM BRANDS INCLUDING THE FLAGSHIP BUDWEISER WHOSE PREMIUM PRICE HAS BEEN DRIVING CONSUMERS TO CHEAPER BREWS IN WHAT HAS BEEN AN INTENSE PRICE WAR ACCORDING TO SEVERAL ANHEUSER DISTRIBUTORS IN THE STATE THERE WILL BE A MAJOR REDUCTION IN PRICE TO THE RETAILER EARLY IN 1994 SAID JOHN ANDERSON JR ONE OF EIGHT DISTRIBUTORS IN LOS ANGELES HE SAID THE PRICE CUTS WHICH ARE EXPECTED TO BE MATCHED BY COMPETING BREWERS WOULD INVOLVE MOST OF THE BUDWEISER FAMILY THAT INCLUDES BUD LIGHT AND BUD DRY AS WELL AS BUDWEISER THE COMPANY'S MOST IMPORTANT BRAND BY FAR MICHELOB SUPERPREMIUM BEERS ALSO ARE EXPECTED TO BE INCLUDED ACCORDING TO WILLIAM SHINER GENERAL MANAGER AT TRIANGLE DISTRIBUTING CO IN SANTA FE SPRINGS CALIF ANHEUSER WHICH IS BASED IN ST LOUIS DECLINED TO MAKE EXECUTIVES AVAILABLE TO COMMENT INSTEAD IT ISSUED A BRIEF STATEMENT SAYING THE COMPANY HAS ALWAYS PRICED ITS BRANDS COMPETITIVELY TO THE CONSUMER BUT THAT HASN'T BEEN THE CASE OF LATE IN CALIFORNIA WHICH ACCOUNTS FOR 127 OF ANHEUSER'S US BEER SALES IN THE YEAR ENDED JULY 31 ANHEUSER BRANDS LOST 21 MARKETSHARE POINTS IN CALIFORNIA FINISHING THE PERIOD WITH 483 OF THE MARKET ACCORDING TO BEER MARKETER'S INSIGHTS A TRADE PUBLICATION WORSE THE CHEAPER ANHEUSER BRANDS SUCH AS NATURAL LIGHT SEEM TO BE DOING WELL WHICH MEANS THAT LOSSES ARE COMING LARGELY OUT OF PREMIUMPRICED BUDWEISER AMONG THE COMPANY'S HIGHESTMARGIN BREWS THE PLANNED CUTS COME AMID RAMPANT DISCOUNTING AND SPECIAL DEALS THAT HAVE SLASHED PRICES TO AS LITTLE AS 599 FOR A 12CAN PACK OF BUDWEISER WHICH REGUARLY WOULD SELL FOR TWICE THAT AMOUNT IN SOME STORES RIVAL BRANDS HAVE SOLD FOR AS LITTLE AS 399 FOR A 24CAN CASE AFTER A 4 REBATE PRICE PROMOTIONS AND REDUCTIONS ARE GOING ON EVERY MONTH MR ANDERSON SAID THE EFFECT HAS BEEN DE FACTO EVERYDAY LOW PRICING THE ARRIVAL OF EVERYDAY LOW PRICING WOULD BE A FIRST FOR THE BEER INDUSTRY SO FAR ONLY A FEW MAJOR CONSUMERPRODUCT CONCERNS SUCH AS PROCTER & GAMBLE CO HAVE PUSHED FOR THE IDEA IN AN EFFORT TO REDUCE DEALS AND OTHER PROMOTION COSTS AND INCREASE PROFITS THROUGH LESSBUMPY PRODUCTION CYCLES ANHEUSER'S STRATEGY WAS FIRST REPORTED YESTERDAY IN ADVERTISING AGE MAGAZINE WALL STREET IS LIKELY TO APPLAUD THE MOVE SOME ANALYSTS SAY TO ME IT'S THE RIGHT STRATEGY SAID EMANUEL GOLDMAN OF PAINEWEBBER INC THEY CAN'T AFFORD TO LOSE ANY MORE MARKET POSITION WHILE MR GOLDMAN WOULDN'T PREDICT THE NEARTERM EFFECT THAT SELECTIVE PRICE REDUCTIONS MIGHT HAVE ON THE COMPANY'S EARNINGS HE SAID THAT OVER THE LONGER TERM THAT'S WHAT NEEDS TO BE DONE HE EXPECTS THAT IN ROBUST MARKETS THE BREWER MAY WELL RAISE PRICES TO HELP MAINTAIN PROFITS EARLIER THIS YEAR ANHEUSER ANNOUNCED A MAJOR CORPORATE OVERHAUL THAT INCLUDED EMPLOYEE LAYOFFS AND A HEFTY CHARGE TO EARNINGS AS IT SOUGHT TO REGAIN ITS MOMENTUM TOWARD ITS QUEST FOR A 50 SHARE OF THE US BEER MARKET IT CURRENTLY HAS ABOUT A 441 SHARE ACCORDING TO BEER MARKETER'S INSIGHTS' ASSOCIATE PUBLISHER BENJAMIN STEINMAN CALIFORNIA'S CONTINUING ECONOMIC SLUMP LAYOFFS IN THE DEFENSE AND OTHER MAJOR INDUSTRIES AND AN EXTRAORDINARY WAVE OF WET AND COLD WEATHER HAVE MADE THIS WHAT MR ANDERSON THE LOS ANGELES DISTRIBUTOR CALLED A HORRIBLE YEAR FOR HIS BUSINESS TO BOOST SALES BREWERS HAVE BEEN ENGAGING IN MYRIAD DISCOUNTS AND PROMOTIONS IN SUPERMARKETS CONVENIENCE STORES AND OTHER MAJOR RETAILING OUTLETS EFFORTS TO STIMULATE SALES IN BARS AND TAVERNS HAVE INCLUDED WHAT ONE DISTRIBUTOR DESCRIBED AS EVENING PUB VISITS BY SALESPEOPLE WITH BEVIES OF BUD GIRLS HANDING OUT KEY CHAINS AND OTHER PROMOTIONAL ITEMS TO CUSTOMERS GARY STYLES WESTERN REGIONAL SALES DIRECTOR FOR ADOLPH COORS CO'S COORS BREWING UNIT SAID COORS IS AWARE OF ANHEUSER'S PRICING INTENTIONS BUT HE DECLINED TO SAY WHETHER COORS WOULD FOLLOW SUIT ON ITS BEERS IN CALIFORNIA 9312140032 931214 WHAT'S NEWS BUSINESS AND FINANCE TRADE OFFICIALS WRAPPED UP NEARLY ALL TARIFF ISSUES AND GAVE UP ON SOME STICKY DISPUTES MOVING CLOSER TO COMPLETING A WORLD TRADE PACT THAT FACES A DEADLINE LESS THAN TWO DAYS AWAY BUT THEIR DEALS ARE PITTING US COMPANIES AGAINST EACH OTHER AND WILL FACE A FIGHT IN CONGRESS SHAWMUT MORTGAGE SETTLED LENDINGDISCRIMINATION CHARGES WITH THE JUSTICE DEPARTMENT WHICH HAILED THE ACCORD AS AN EXAMPLE OF HOW LENDERS CAN SUCCESSFULLY RESOLVE BIAS CASES SHAWMUT AGREED TO SET UP A 960000 FUND TO COMPENSATE BLACKS AND HISPANICS UNFAIRLY DENIED MORTGAGES SOUTHWEST AIRLINES AGREED TO BUY CLOSELY HELD MORRIS AIR FOR ABOUT 129 MILLION IN STOCK CREATING AN EVEN MORE COMPETITIVE LOWCOST RIVAL FOR THE GIANTS OF THE AIRLINE INDUSTRY SOUTHWEST'S STOCK ROSE 2 OR 59 TO 36 LORAL AGREED TO BUY IBM'S FEDERAL SYSTEMS UNIT FOR 157 BILLION BEATING OUT COMPETITORS MARTIN MARIETTA HUGHES AIRCRAFT AND NORTHROP THE MOVE SEEMS CERTAIN TO SEND LORAL INTO THE TOP RANKS OF US ARMS MAKERS AVIATION REGULATORS EXPECT OVER 12 BILLION IN UNFORESEEN COSTS FOR UPDATING THE AIRTRAFFIC CONTROL SYSTEM IBM'S FEDERAL SYSTEMS SUBSIDIARY HAS MOST OF THE 59 BILLION IN CONTRACTS FOR THE CONTROL SYSTEM'S WORKSTATIONS LEHMAN BROTHERS DISMISSED 7 OF ITS 430MEMBER BROKERAGE FORCE AHEAD OF A POSSIBLE INITIAL PUBLIC OFFERING NEXT YEAR WALL STREET EXECUTIVES SAID THE DOW JONES INDUSTRIALS JUMPED TO A SECOND CONSECUTIVE HIGH SURGING 2376 TO 376443 BOND PRICES FELL THE TREASURY'S 30YEAR ISSUE LOST NEARLY 3/8 POINT ITS YIELD ROSE TO 623 PRUDENTIAL INSURANCE AGENTS ARE BEING INVESTIGATED BY THE SEC OVER ALLEGATIONS THAT THEY IMPROPERLY SOLD LIMITED PARTNERSHIPS AND OTHER SECURITIES PEOPLE CLOSE TO THE PROBE SAID THE WHITE HUSE IS DRAFTING A PLAN TO PROD CORPORATE PENSION FUNDS TO SET UP PROCEDURES TO GOVERN HOW THEIR HOLDINGS ARE TO BE VOTED A MOVE THAT COULD BOOST SHAREHOLDER ACTIVISM INSURANCE COMPANIES SHOULD BE HELD TO TOUGH FEDERAL STANDARDS FOR THEIR MANAGEMENT OF CERTAIN PENSION FUNDS THE SUPREME COURT RULED FEDERAL EXPRESS SAID FISCAL SECONDQUARTER EARNINGS JUMPED 69 FUELED BY ITS FOREIGN OPERATIONS' FIRST PROFIT CLINTON'S LABOR CHIEF IS WEIGHING A PROPOSAL TO RAISE FEDERAL PAYROLL TAXES TO EXPAND WORKERTRAINING PROGRAMS ANHEUSERBUSCH PLANS PRICE CUTS ON PREMIUM BEERS AMID A SALES DROP IN ITS BIGGEST MARKET CALIFORNIA CIRCUIT CITY'S PROFIT ROSE 17 IN ITS THIRD QUARTER AND THE ELECTRONICS RETAILER PLANS TO OPEN 180 SUPERSTORES ALLIEDSIGNAL'S CHAIRMAN SAID HE EXPECTS THE COMPANY'S FOURTHQUARTER EARNINGS TO RISE BETWEEN 22 AND 26 THE FIRM IS ALSO MULLING A STOCK SPLIT TOKYO STOCKS ROSE ON REPORTS THAT A JAPANESE GOVERNMENT ADVISORY PANEL WILL RECOMMEND INCOMETAX CUTS AND OTHER STEPS TO STIMULATE THE ECONOMY AIR FRANCE'S CHAIRMAN PROPOSED A SET OF GOALS TO UNION LEADERS TO TURN AROUND THE STATEOWNED AIRLINE HE CALLED FOR SALARY CUTS FOR HIGHLY PAID WORKERS IN RETURN FOR EQUITY STAKES BONDS LEHMAN BROTHERS TREASURY INDEX 553602 OFF 1666 COMMODITIES OIL 1452 A BARREL OFF 55 CENTS DOW JONES FUTURES INDEX 13921 OFF 027 SPOT INDEX 12423 UP 040 DOLLAR 10895 YEN OFF 025 17085 MARKS UP 00120 9312140031 931214 WESTPOINT OFFICIAL'S PARTNERSHIP TO BUY NEW STREET CAPITAL BY MICHAEL SANTOLI SPECIAL TO THE WALL STREET JOURNAL NEW YORK DBL LIQUIDATING TRUST WHICH ADMINISTERS THE REMAINING ASSETS OF FORMER INVESTMENT BANKING FIRM DREXEL BURNHAM LAMBERT INC SAID IT AGREED TO SELL MERCHANTBANKING FIRM NEW STREET CAPITAL CORP FOR MORE THAN 600 MILLION A MAJOR ASSET OF NEW STREET IS ITS 22 EQUITY STAKE IN TEXTILE COMPANY WESTPOINT STEVENS INC FORMERLY KNOWN AS WEST POINTPEPPERELL NEW STREET IS BEING SOLD TO A PARTNERSHIP CONTROLLED BY HOLCOMBE GREEN WESTPOINT'S CHIEF EXECUTIVE OFFICER WHO IS SEEKING TO SECURE HIS POSITION AT THE COMPANY NEW STREET WHICH IS BEING SOLD TO MR GREEN'S GREEN CAPITAL INVESTORS LP HAS 24 EMPLOYEES AND A SECURITIES PORTFOLIO INCLUDING THE WESTPOINT STAKE THE TRANSACTION WILL GIVE DREXEL CREDITORS A PRICE HIGHER THAN BOOK VALUE FOR NEW STREET AND OFFERS MR GREEN THE CHANCE TO FEND OFF A PAIR OF WESTPOINT DIRECTORS WHO WANT TO OUST HIM THE PURCHASE OF NEW STREET'S WESTPOINT SHARES WILL BOOST HIS STAKE TO 337 OF THE HUGE TEXTILES COMPANY THE ANNOUNCEMENT DIDN'T PUT A VALUE ON THE 76 MILLION WESTPOINT SHARES AT CURRENT MARKET LEVELS THE STAKE HAS A VALUE OF ABOUT 142 MILLION IN NASDAQ STOCK MARKET TRADING YESTERDAY WESTPOINT SHARES CLOSED AT 1875 DOWN 25 CENTS A SHARE OR 13 MR GREEN SUCCEEDED MR FARLEY AS CHIEF EXECUTIVE IN OCTOBER 1992 SHORTLY AFTER WEST POINTPEPPERELL EMERGED FROM BANKRUPTCY COURT ON FRIDAY WEST POINTPEPPERELL COMPLETED A REFINANCING AND MERGER WITH VALLEY FASHIONS THE VEHICLE MR FARLEY USED TO BUY 95 OF THE COMPANY TWO DIRECTORS WHO OPPOSED THE PLAN AND WHO TOGETHER CONTROL 222 OF THE COMPANY LAST MONTH FILED DOCUMENTS WITH REGULATORS SAYING THEY INTEND TO SEEK MR GREEN'S REPLACEMENT AT THE 1994 ANNUAL MEETING THE MEETING HASN'T YET BEEN SCHEDULED THE DIRECTORS WHO HAVE OPPOSED THE 12 BILLION REFINANCING ARE TALTON B EMBRY AND GEORGE MCFADDEN NEW STREET HAS VARIOUS OTHER BOND AND EQUITY POSITIONS INHERITED FROM DREXEL AS WELL AS INVESTMENTS MADE SINCE THE FIRM WAS ESTABLISHED AS A MERCHANT BANK THE AGREEMENT PROVIDES THAT NEW STREET MAY SELL TO DBL LIQUIDATION AT FAIR MARKET VALUE ANY SECURITIES IT LATER DEEMS ILLIQUID MR GREEN INTENDS TO CONTINUE OPERATING NEW STREET AS A MERCHANTBANKING HOUSE THE DBL LIQUIDATION AND WESTPOINT SPOKESMAN SAID AS OF SEPT 30 NEW STREET HAD ASSETS OF 617 MILLION IN CASH AND SECURITIES CASH GENERATED BY THE SALE WILL BE USED IN PART BY THE TRUST TO MAKE A 74 MILLION PAYMENT TO THE INTERNAL REVENUE SERVICE WHICH IT IS UNDERSTOOD WILL SATISFY THE LAST OF DREXEL'S TAX OBLIGATION OUTSTANDING REMAINING PROCEEDS WILL GO TOWARD FUNDING REQUIRED RESERVES AND POSSIBLY TO A CASH DISTRIBUTION TO CREDITORS WESTPOINT IS ONE OF THE NATION'S LARGEST MAKERS OF SHEETS AND TOWELS IT BOASTS LOW PRODUCTION COSTS MODERN EQUIPMENT AND SOME OF THE HIGHEST OPERATING MARGINS IN THE INDUSTRY IT HAS THE RALPH LAUREN BRAND AT THE HIGH END AMONG ITS OTHER BRANDS ARE MARTEX UTICA LADY PEPPERELL STEVENS AND VELLUX 9312140030 931214 ROOTS OF ENTITLEMENTS' AND BUDGET WOES BY NORMAN ORNSTEIN YESTERDAY REP MARJORIE MARGOLIESMEZVINSKY D PA HELD A FUTURE OF ENTITLEMENTS CONFERENCE IN BRYN MAWR WITH THE PRESIDENT IN ATTENDANCE THE FUTURE OF POPULAR BUDGETBUSTING ENTITLEMENTS IS AN ISSUE WORTHY OF OUR ATTENTION BUT IT IS ALSO IMPORTANT TO LOOK AT THEIR RELATIVELY BRIEF PAST ENTITLEMENT HAS BECOME SUCH AN OFTUSED TERM THAT ONE WOULD IMAGINE THAT IT HAS BEEN IN THE POLICY LEXICON FOREVER BUT THE TERM ITSELF IS A VERY RECENT ADDITION AT LEAST IN TERMS OF ITS POPULARIZED USAGE AND IT IS AT THE ROOT OF OUR CURRENT BUDGET DILEMMA TRUE POLITICIANS IN SOCIAL SECURITY'S EARLY YEARS REFERRED TO ITS BENEFITS AS EARNED ENTITLEMENTS THE IMPLICATION WAS THAT PEOPLE EARNED MONEY PUT A PORTION INTO THE SOCIAL SECURITY TRUST FUND AND THEN DREW OUT WHAT THEY HAD EARNED BUT EARNED ENTITLEMENT WAS A MORE TECHNICAL DESCRIPTION OF THE PROGRAM NOT A STANDARD TERM TO DEFINE IT LOOK THROUGH MOST BOOKS ON SOCIAL SECURITY FROM THE '40S '50S AND '60S AND THE WORD ENTITLEMENT IS NOT EVEN IN THEIR INDEXES IN FACT ALTHOUGH THE TERM ENTITLEMENT AUTHORITY WAS USED IN THE 1974 BUDGET AND IMPOUNDMENT CONTROL ACT IT WAS NOT UNTIL THE REAGAN ADMINISTRATION THAT ENTITLEMENT TOOK HOLD AS A COMMON CATCHALL EXPRESSION FOR SOCIAL TRANSFER PROGRAMS EARLY IN HIS FIRST YEAR PRESIDENT REAGAN BEGAN TO REFER TO ENTITLEMENTS INSTEAD OF THE SOCIAL SECURITY NET HE HAD PREFERRED DURING THE CAMPAIGN ONE REAGAN ADVISER HAS SUGGESTED THAT MR REAGAN WAS TIRED OF GETTING BEATEN UP EVERY TIME HE MENTIONED SOCIAL SECURITY AND WANTED A BROADER AND MORE NEUTRAL TERM TO USE ON APRIL 9 1981 US NEWS & WORLD REPORT REFERRED TO THE REVOLUTION IN ENTITLEMENTS IN A FEATURE ON TRANSFER PROGRAMS A MONTH EARLIER THE TERM WAS NOT USED LATER IN THE YEAR TIME BUSINESS WEEK AND OTHER MAGAZINES ALSO USED THE WORD IN A SIGN OF ITS NOVELTY MOST PUT THE WORD IN QUOTATION MARKS LANGUAGE IS IMPORTANT THE PHILOSOPHER MARY ANN GLENDON IN HER BOOK RIGHTS TALK NOTES THAT THE US UNLIKE MOST EUROPEAN NATIONS LACKS CONSTITUTIONAL PROTECTION FOR THE WELLBEING OF CITIZENS WE HAVE TAKEN TO SUBSTITUTING PROGRAMS FOR THESE CONSTITUTIONAL SAFEGUARDS AND HAVE CALLED THEM ENTITLEMENTS THE LANGUAGE OF ENTITLEMENT SUGGESTS RIGHTS WHICH TEND TO BE PRESENTED AS ABSOLUTE INDIVIDUAL AND INDEPENDENT OF ANY NECESSARY RELATIONSHIP TO RESPONSIBILITIES THE CHOICE OF TERMS SHE SAYS HAS A POWERFUL EFFECT ON HOW WE IMAGINE THE ROLE AND THE ENDS OF GOVERNMENT ANY DIRECT CONNECTION BETWEEN MONEY PUT IN AND MONEY LATER TAKEN OUT THE EARNED ASPECT OF THE ENTITLEMENT WAS LONG AGO LOST FOR SOCIAL SECURITY AND NEVER EXISTED FOR MEDICARE BUT THE PUBLIC SENSE OF THESE PROGRAMS AS RIGHTS HAS CORRESPONDINGLY GROWN TALK TO ALMOST ANY AUDIENCE OF ELDERLY PEOPLE AND IT BECOMES CLEAR THAT THE WIDESPREAD PUBLIC VIEW IS THAT RECIPIENTS ARE ENTITLED TO THESE PROGRAMS AND ANY CUTBACKS OR CHANGES ARE THUS ILLEGITIMATE JOURNALISTS AND POLITICIANS HAVE GROWN ACCUSTOMED TO REFERRING TO DISCRETIONARY PROGRAMS AND ENTITLEMENT PROGRAMS BUT IN FACT THE AMERICAN PEOPLE HAVE A DIFFERENT PERSPECTIVE THERE ARE ENTITLEMENTS AND THERE ARE PROGRAMS PROGRAMS CAN BE ALTERED OR CUT ENTITLEMENTS CANNOT ONCE A PROGRAM BECOMES DEFINED INSTEAD AS AN ENTITLEMENT IT BECOMES A PRIVILEGED INSTRUMENT WALLED OFF FROM STANDARD PROGRAM REVIEW AND BUDGETARY PRESSURES IT IS OF COURSE MUCH EASIER TO SELL A PROGRAM POLITICALLY BY DEFINING ITS BENEFITS AS A RIGHT THAT MAKES THE QUEST FOR PASSAGE ALMOST A SACRED OBLIGATION AND INVESTS THE PROPONENTS WITH AN AURA OF LEGITIMACY BUT IF ONE WANTS TO BUILD IN ANY HOPE OF FUTURE RESTRAINT IT IS A DANGEROUS COURSE TO TAKE IS HEALTH CARE OR HEALTH COVERAGE AN ENTITLEMENT PRESIDENT CLINTON CLEARLY THINKS THE ANSWER SHOULD BE YES IN A SPEECH AT JOHNS HOPKINS UNIVERSITY ON OCT 28 HE DEFINED HIS PROGRAM AS A COMPREHENSIVE PACKAGE OF BENEFITS THAT ARE ALWAYS THERE AND THAT CAN NEVER BE TAKEN AWAY REMINISCENT OF FRANKLIN ROOSEVELT'S DETERMINATION THAT NO FUTURE GENERATION OF POLITICIANS WOULD BE ABLE TO MESS WITH HIS SOCIAL SECURITY PROGRAM THE ADMINISTRATION'S HEALTH REFORM IS NOW DEFINED AS A CAPPED ENTITLEMENT SHOWING AT LEAST THAT IT IS RESPONDING TO THE CONCERN OF MAINSTREAM LAWMAKERS FROM BOTH PARTIES BUT LIBERAL DEMOCRATS HAVE CHALLENGED THE CAP SAYING IT WOULD BREAK FAITH WITH THE PUBLIC AND BREAK THE PROMISE OF UNIVERSAL CARE A CAPPED ENTITLEMENT OF COURSE IS LIKE A PARTIAL PREGNANCY THE CAP OR LIMITATION BECOMES INCREASINGLY DIFFICULT TO MAINTAIN BECAUSE ONE EITHER HAS A RIGHT OR ONE DOESN'T AT THE SAME TIME THE DEFINITION OF THE ENTITLEMENT ALMOST INEVITABLY EXPANDS IN THIS CASE TO INCLUDE A RIGHT TO DENTAL CARE OPTOMETRIC CARE CHIROPRACTIC CARE PSYCHOLOGICAL CARE ACUPUNCTURE CARE AND SO ON UNIVERSAL HEALTH COVERAGE AND UNIVERSAL HEALTH CARE ARE LAUDABLE GOALS THE ADMINISTRATION BELIEVES THAT THESE GOALS CAN BE ACHIEVED WHILE RESTRAINING COSTS THROUGH ITS GLOBAL APPROACH BUT IF WE DON'T STRIVE TO DEFINE THESE GOALS AS PROGRAMMATIC AND INSTEAD ACCEPT THEM AS ENTITLEMENTS THEIR STATUS AS RIGHTS WILL GROW THEN THE ABILITY TO REIN IN HEALTH COSTS CONTROL THE FEDERAL BUDGET AND FUND OTHER PROGRAMS WILL CORRESPONDINGLY DECLINE MR ORNSTEIN OF THE AMERICAN ENTERPRISE INSTITUTE IS COAUTHOR WITH JOHN MAKIN OF DEBT AND TAXES DUE OUT NEXT MONTH FROM TIMES BOOKS 9312140028 931214 ON THE OFFENSIVE LORAL CORP IS SURGING AS DEFENSE FIELD EBBS IS GROWTH TOO HASTY LATEST DEAL FOR IBM UNIT COMES AS THAT UNIT HITS SNAG WITH BIG CONTRACT THE DRIVEN MR SCHWARTZ BY SARAH LUBMAN AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL IN THE DEFENSE INDUSTRY WHICH HAS BEEN UNDER SUCH PRESSURE SINCE THE COLD WAR ENDED THAT ONLY THE BIG GUNS SEEM ASSURED OF SURVIVAL FEISTY LORAL CORP CHAIRMAN BERNARD L SCHWARTZ JUST KEEPS DRIVING TOWARD THE BIG TIME YESTERDAY LORAL TOPPED A LONG STRING OF AGGRESSIVE ACQUISITION PLAYS WITH ITS BIGGEST DEAL YET AGREEING TO BUY INTERNATIONAL BUSINESS MACHINES CORP'S FEDERAL SYSTEMS CO UNIT FOR 157 BILLION THE UNIT HAS 22 BILLION IN ANNUAL REVENUE INCLUDING CIVILIAN PROJECTS MR SCHWARTZ'S MOVE APPEARS CERTAIN TO CATAPULT LORAL INTO THE TOP RANKS OF THE NATION'S DEFENSE COMPANIES POSITIONING THE NEW YORKBASED ELECTRONICS STALWART AMONG HEAVYWEIGHTS SUCH AS MARTIN MARIETTA CORP AND LOCKHEED CORP INDEED LORAL'S SPEED AND CERTAINTY WERE ESSENTIAL FACTORS IN ITS BEATING OUT COMPETITORS LIKE MARTIN MARIETTA THE HUGHES AIRCRAFT CO UNIT OF GENERAL MOTORS CORP AND NORTHROP CORP TO WIN THE IBM UNIT NORTHROP IN FACT WAS OFFERING 180 MILLION MORE THAN LORAL WILL PAY BUT LORAL'S LATEST DEAL FUELS QUESTIONS ABOUT THE COMPANY AMONG THEM WHETHER THE 68YEAROLD MR SCHWARTZ MIGHT BE AMASSING TOO MUCH OF THE DEFENSE INDUSTRY AND PERHAPS DOING IT ALL TOO HASTILY FOR A COMPANY OF LORAL'S SIZE WITHIN HOURS OF THE AGREEMENT'S ANNOUNCEMENT FOR EXAMPLE THE FEDERAL AVIATION ADMINISTRATION SAID IT IS REASSESSING 59 BILLION IN CONTRACTS TO BUILD NEW WORK STATIONS FOR AIRTRAFFIC CONTROLLERS OF WHICH FEDERAL SYSTEMS HAS THE BIGGEST CHUNK 46 BILLION OVER SEVERAL YEARS THE AGENCY CITED 12 BILLION IN COST OVERRUNS ABOUT 750 MILLION OF WHICH PERTAINS TO IBM'S PART OF THE PROJECT FAA OFFICIALS SAID THEIR ANNOUNCEMENT WASN'T TRIGGERED BY THE LORALIBM MOVE MR SCHWARTZ DISMISSED THE FAA'S ANNOUNCEMENT BY SAYING HE HADN'T BEEN BANKING ON HAVING THAT PIECE OF BUSINESS ANYWAY BESIDES HE SAYS THE IBM UNIT'S AIRTRAFFIC CONTROL BUSINESS HAS TURNED THE CORNER ON ITS PROBLEMS STILL BECAUSE THE COST OVERRUNS COULD PROMPT NEW CALLS FOR PROCUREMENT REFORM THEY MIGHT CAUSE HEADACHES FOR THE NEW OWNER OF THE IBM FEDERAL SYSTEMS UNIT IBM KNEW ABOUT THE COST PROBLEM BUT JEROME YORK THE COMPANY'S CHIEF FINANCIAL OFFICER DECLINED TO COMMENT ON WHO WOULD ACCEPT POTENTIAL LIABILITY SAYING THAT TO DO SO WOULD REVEAL THE EXACT TERMS OF THE LORAL PURCHASE AGREEMENT MR YORK SAID CHANGES TO ANY CONTRACT ARE OPEN TO INTERPRETATION MEANING IBM DOESN'T NECESSARILY AGREE WITH THE FAA'S FIGURE AS WITH THE IBM ACQUISITION LORAL'S GROWTH HAS BEEN BOLD AS A STRUGGLING DEFENSEELECTRONICS FIRM 22 YEARS AGO LORAL HAD 27 MILLION IN ANNUAL REVENUE SOME OF IT FROM A TOY DIVISION THAT MADE PLASTIC SOLDIERS NOW THE 35 BILLION COMPANY IS THE 13THLARGEST US ARMS CONTRACTOR UP FROM 16TH LAST YEAR WITH 30 DIVISIONS INVOLVED IN BUSINESSES FROM COMMERCIAL SATELLITES TO SYSTEMS THAT LET TANK COMMANDERS TRAIN IN REALISTIC WAR GAMES IN LINING UP HIS AGREEMENT WITH IBM MR SCHWARTZ FINESSED RIVALS BY CLOSING THE DEAL QUICKLY WITH A FIRM NOCAVEATS OFFER THAT HE HAD BEEN PREPARING SINCE IBM CHAIRMAN LOUIS V GERSTNER ASSUMED THE TOP JOB THERE EARLIER THIS YEAR WITHIN A MONTH OF MR GERSTNER'S ARRIVAL MR SCHWARTZ CONTACTED HIM THROUGH INTERMEDIARIES THEN 10 DAYS AGO WHILE OTHER BIDDERS WERE GEARING UP FOR DUEDILIGENCE REQUESTS ON THE IBM UNIT MR SCHWARTZ DECLARED TO IBM THAT HE HAD ALREADY DONE MOST OF HIS HOMEWORK AND WAS PREPARED TO CLOSE THE DEAL AS SOON AS POSSIBLE THE SPEED WITH WHICH LORAL MOVED HAS ANGERED SOME RIVAL BIDDERS INCLUDING ONE COMPANY WHOSE EXECUTIVES SAY THEY WENT AS FAR AS TO CONTEMPLATE CUTTING OFF THEIR TRADE WITH IBM THE EXECUTIVES EVENTUALLY BECAME RESIGNED TO LORAL'S VICTORY AND DECIDED NOT TO CHALLENGE THE SELECTION PROCESS IN SUCH A WAY BUT QUESTIONS ABOUT THE IBMLORAL DEAL STILL PERCOLATE WAS IT FAIR IN THE FINAL ANALYSIS PROBABLY NOT GRUMBLES A SENIOR EXECUTIVE AT ONE OF THE THREE OTHER FINALIST COMPANIES NORTHROP MAY FEEL BURNED THE MOST AFTER SUBMITTING A 175 BILLION OFFER FRIDAY THE LOS ANGELESBASED COMPANY HAD PLANNED TO SEND AS MANY AS 50 LAWYERS AND MANAGERS TO FEDERAL SYSTEMS TO PERFORM DUE DILIGENCE A DETAILED EXAMINATION OF THE BUSINESS AND ITS FINANCES SAY PEOPLE FAMILIAR WITH THE DEVELOPMENTS BUT IT WAS TOO LATE IBM'S BOARD HAD ALREADY VOTED TO ACCEPT LORAL'S OFFER A NORTHROP SPOKESMAN HAD NO COMMENT WE'RE IN A POSITION TO MOVE VERY FAST SAYS MR SCHWARTZ OF THE IBM TRANSACTION AND ALSO OF LORAL'S GENERAL APPROACH TO ACQUISITIONS HE DOESN'T RELY ON INVESTMENT BANKERS' EVALUATIONS PREFERRING TO MAKE THEM HIMSELF WE DON'T HAVE A CORPORATEDEVELOPMENT DEPARTMENT THAT HAS TO FERRET OUT A CORPORATE STRATEGY AND THEN SOMEONE ELSE IMPLEMENTS IT HE SAYS IN THE CASE OF THE IBM DEAL HE ADDS I COMMUNICATED THE FOLLOWING THAT LORAL WAS WILLING IMMEDIATELY TO PUT A FIRM BID ON THE TABLE AND SKIP THE BOGUS AUCTION PROCESS OF GIVING INDICATIONS AND GOING THROUGH DUE DILIGENCE AND ALL OF THAT HE SAYS HE ALSO PROMISED THAT HE WOULD CLOSE AS SOON AS THEY COULD CLOSE OFFICIALS OF RIVAL COMPANIES SAY THEY WEREN'T PREPARED TO DO THAT WITHOUT STUDYING FEDERAL SYSTEMS FURTHER LORAL'S EAGERNESS TO WIN THE FEVERISH BIDDING CONTEST FOR FEDERAL SYSTEMS WHICH IBM JUST FOUR WEEKS AGO DISCLOSED IT WAS CONSIDERING SELLING SUGGESTS HOW MUCH LORAL IS COUNTING ON THE ACQUISITION TO STRENGTHEN ITS EXISTING MILITARY AND COMMERCIAL MARKETS FEDERAL SYSTEMS IS A RESPECTED SOFTWARE PRODUCER AND SYSTEMS INTEGRATOR IN MARKETS FOR MILITARYAIRCRAFT AVIONICS SENSORS AND COMMUNICATION DEVICES SUCH AS RADARWARNING SYSTEMS COCKPIT DISPLAYS AND ELECTRONICCOUNTERMEASURES GEAR ALL ARE AREAS WHERE LORAL ALREADY HAS EXPERTISE ABOUT HALF THE IBM UNIT'S ANNUAL SALES RELATE TO DEFENSE PRODUCTS INCLUDING ANTISUBMARINE WARFARE AND WEAPONSSYSTEMS SIMULATION BUT A REAL PLUS OF THE PURCHASE FOR LORAL IS THAT IT WILL GIVE THE COMPANY STRONG FOOTING IN SPACESHUTTLE SOFTWARE AND MR SCHWARTZ PREDICTS CIVILIAN AIRTRAFFICCONTROL SYSTEMS IT'S A LARGE SYSTEMS INTEGRATOR HE SAYS THERE ARE VERY FEW COMPANIES THAT CAN DO THAT THERE REMAINS SOME SKEPTICISM HOWEVER ABOUT HIS ABILITY TO MANAGE A PURCHASE AS LARGE AS FEDERAL SYSTEMS MR SCHWARTZ BRISTLES AT THE SUGGESTION THAT LORAL IS MORE VORACIOUS THAN FELLOW DEFENSE CONTRACTORS THERE'S NOTHING AGGRESSIVE ABOUT WHAT LORAL DID HERE HE SAYS HE PORTRAYS HIS COMPANY AS JUST ANOTHER DELIBERATE PLAYER MOVING CAUTIOUSLY THROUGH A LOGICAL PROGRESSION IN THE TRADITIONALLY CONSERVATIVE DEFENSE INDUSTRY MR SCHWARTZ IS RARE AN ANTIVIETNAM WAR DEMOCRAT WHO IS ALSO A BIG SUPPORTER OF PRESIDENT CLINTON A CHARISMATIC DRIVEN MANAGER HE RETAINS AN EXTRAORDINARY GRIP ON THE BUSINESS LORAL'S DECENTRALIZED STRUCTURE WHICH MAKES IT ESSENTIALLY A COLLECTION OF FREESTANDING COMPANIES CONCERNS SOME OF HIS PEERS AND EVEN SOME ADMIRERS ONCE CONSIDERED A DEFENSEINDUSTRY OUTSIDER MR SCHWARTZ A FORMER COLLEAGUE OF CORPORATE RAIDER SAUL P STEINBERG OCCASIONALLY IS HELD UP AS AN INDUSTRY EXEMPLAR THESE DAYS HE GOT A HEAD START ON THE REST OF THE INDUSTRY BECAUSE OF HIS BACKGROUND BUT IT WOULD SELL BERNARD SHORT TO SAY HE WAS PRINCIPALLY A DEALMAKER SAID NORMAN AUGUSTINE CHAIRMAN OF MARTIN MARIETTA A FEW MONTHS AGO HE DOESN'T JUST BUY HIMSELF BUSINESSES HE RUNS THEM PROFITABLY DAY IN AND DAY OUT BUT SOME CRITICS HAVE SUGGESTED THAT LORAL IS PRECARIOUSLY DEPENDENT ON ITS VIGOROUS LEADER WHO SERVES AS JUST ABOUT ITS ONLY CONTACT WITH THE OUTSIDE WORLD DESPITE HIS AGE THERE'S NO FORMAL SUCCESSION PLAN UNDER CONSIDERATION BUT WE THINK THAT THERE IS NO ISSUE OF SUCCESSION MR SCHWARTZ SAYS WE HAVE A GOOD TEAM HERE THAT'S BEEN IN PLACE A LONG TIME LORAL HAS DECLINED TO MAKE ITS PRESIDENT AND CHIEF OPERATING OFFICER 62YEAROLD FRANK C LANZA AVAILABLE TO THE PRESS ASKED EARLIER THIS YEAR WHY HE WOULDN'T MR SCHWARTZ SAID BECAUSE THAT'S THE WAY I LIKE IT IN MR SCHWARTZ'S VIEW THERE ISN'T ANY MYSTERY OR GRAND STRATEGY SHAPING LORAL'S FUTURE BEYOND THE CONTINUED PURSUIT OF UPGRADES IN MILITARY SYSTEMS AND THE EVOLVING TECHNOLOGIES THAT DRIVE THEM WE NEVER HAVE HAD ANY ENDGAME HE SAID EARLIER THIS YEAR CERTAINLY DOING THINGS THE SCHWARTZ WAY HAS PAID OFF DURING HIS 22YEAR TENURE THERE MOVING QUICKLY IN THE EARLY DAYS TO PARE NONDEFENSE OPERATIONS INCLUDING THE TOY SOLDIERS LORAL ALSO ADDED SELECTIVELY TO MILITARY LINES IN 1989 ITS 715 MILLION PURCHASE OF FORD AEROSPACE DREW ATTENTION FOR SIZE AND CREATIVITY LORAL FINANCED PURCHASE OF THE FORD MOTOR CO UNIT WHOSE 18 BILLION IN ANNUAL SALES DWARFED LORAL'S 127 BILLION THROUGH A PARTNERSHIP WITH AN AFFILIATE OF WHAT WAS THEN CALLED SHEARSON LEHMAN BROTHERS IT THEN SOLD FORD'S BDM DEFENSECONSULTING UNIT AND SPUN OFF ITS SATELLITE BUSINESS INTO AN UNCONSOLIDATED SUBSIDIARY SHARED WITH FOUR EUROPEAN PARTNERS BEFORE YESTERDAY'S IBM AGREEMENT LORAL'S 244 MILLION PURCHASE OF LTV CORP'S MISSILE BUSINESS SHOWED MR SCHWARTZ'S SKILL IN MAKING END RUNS AROUND BIGGER RIVALS IN THAT CASE TWO COMPETING GROUPS A MARTIN MARIETTALOCKHEED TEAM AND ONE COMPRISING CARLYLE GROUP AND THOMSONCSF OF FRANCE BUT BEING BOLD DOESN'T ALWAYS WORK AFTER LOSING A COMPETITION FOR RADARJAMMING EQUIPMENT IN THE LATE 1970S LORAL IRKED SOME AIR FORCE OFFICIALS BY LOBBYING CONGRESS INTENSIVELY AND UNSUCCESSFULLY FOR A RETEST OF ITS SYSTEM ACCORDING TO SEVERAL INDUSTRY AND CONGRESSIONAL PEOPLE FAMILIAR WITH THE CASE THE GRAVEST HARM TO LORAL'S IMAGE CAME IN 1989 WHEN THE GOVERNMENT'S ILL WIND PENTAGON BRIBERY AND FRAUD PROBE IMPLICATED THE COMPANY LORAL PLEADED GUILTY TO THREE FELONY CHARGES AND PAID 6 MILLION IN DAMAGES PENALTIES AND REIMBURSEMENTS ADMITTING IT HAD PAID A CONSULTANT TO OBTAIN CONFIDENTIAL CONTRACTING INFORMATION FROM THE NAVY AND AIR FORCE FOR MR SCHWARTZ THAT'S ALL IN THE PAST FOR LORAL'S PROPONENTS THE FOCUS IS ON THE FUTURE PARTICULARLY ON HOW THE SWELLING ENTERPRISE WILL FARE WHEN THE CHAIRMAN EVENTUALLY LEAVES A PROSPECT HE SAYS IS A LONG WAY OFF WHILE FORMAL BOARD DISCUSSIONS ON THE SUBJECT HAVEN'T BEEN HELD SAY SEVERAL LORAL DIRECTORS COLUMBIA UNIVERSITY PHYSICS PROFESSOR MALVIN RUDERMAN SAYS THERE HAS BEEN INFORMAL TALK AMONG BOARD MEMBERS I'VE BEEN PRESENT AT A CONVERSATION ONE OR TWO OF US WHO JUST WONDER OUT LOUD WHICH WAY THIS SHOULD GO MR RUDERMAN ONE OF EIGHT OUTSIDERS ON THE 10MEMBER BOARD SAID EARLIER THIS YEAR ANOTHER DIRECTOR NEW YORK LAW SCHOOL PROFESSOR ROBERT SHAPIRO PUTS THE SUCCESSION ISSUE ANOTHER WAY WILL SCHWARTZ CONTINUE TO DO WHAT HE'S DONE YES COULD SOMEONE ELSE DO IT NOT EASILY LAURIE HAYS CONTRIBUTED TO THIS ARTICLE 9312140026 931214 WHO'S NEWS GENERAL MILLS NAMES GAILLARD VICE CHAIRMAN AND A NEW DIRECTOR MINNEAPOLIS GENERAL MILLS INC NAMED FORMER EXECUTIVE VICE PRESIDENT CHARLES W GAILLARD A VICE CHAIRMAN AND A DIRECTOR MR GAILLARD 53 YEARS OLD IS RETURNING FROM A STINT AS CHIEF EXECUTIVE OFFICER OF CEREAL PARTNERS WORLDWIDE GENERAL MILLS' JOINT VENTURE WITH NESTLE SA AND AS PART OF AN EARLIERDISCLOSED MANAGEMENT SHIFT ON JAN 1 WILL ASSUME OVERSIGHT OF THE FOOD AND RESTAURANT CONCERN'S DOMESTIC BIG G CEREAL BUSINESS ITS CONSUMER FOOD SALES AND YOPLAIT YOGURT LINE THE MOVE RESTORES THE NUMBER OF VICE CHAIRMEN AT GENERAL MILLS TO THREE AND BOOSTS BOARD MEMBERSHIP TO 14 AT THE SAME TIME GENERAL MILLS NAMED THE TWO SENIOR VICE PRESIDENTS WHO HEAD ITS RESTAURANT LINES EXECUTIVE VICE PRESIDENTS THE MOVES AFFECTED JEFF O'HARA 46YEAROLD PRESIDENT OF THE COMPANY'S RED LOBSTER UNIT AND RON MAGRUDER ALSO 46 PRESIDENT OF ITS OLIVE GARDEN UNIT 9312140025 931214 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 400 MILLION OF SIXMONTH NOTES PRICED AT PAR AT 333 THROUGH LEAD UNDERWRITER LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE DEC 23 2003 PRICED INITIALLY AT PAR TO YIELD 632 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SOUTH CAROLINA ELECTRIC & GAS CO 100 MILLION OF FIRSTMORTGAGE BONDS DUE DEC 15 2003 PRICED AT PAR TO YIELD 625 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC SOUTH CAROLINA ELECTRIC & GAS IS A UNIT OF SCANA CORP US WIRELESS DATA INC AN INITIAL PUBLIC OFFERING OF 17 MILLION COMMON SHARES PRICED AT 850 EACH ACCORDING TO THE COMPANY UNDERWRITERS INCLUDE RAS SECURITIES CORP WALFORD & CO AND THOMAS JAMES ASSOCIATES INC G&L REALTY CORP INITIAL PUBLIC OFFERING OF 37 MILLION COMMONTREASURY SHARES PRICED AT 1825 A SHARE ACCORDING TO THE COMPANY THE OFFERING WAS UNDERWRITTEN BY NOMURA SECURITIES INTERNATIONAL INC GRUNTAL & CO AND SUTRO & CO SIMON PROPERTY GROUP INC INITIAL OFFERING OF 378 MILLION COMMON SHARES PRICED AT 2225 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ARIZONA TRANSPORTATION BOARD 2885 MILLION OF SERIES 1993A SUBORDINATED HIGHWAY REVENUE REFUNDING BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 32 IN 1995 TO 518 IN 2011 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND S&P FLORIDA MUNICIPAL POWER AGENCY 2027 MILLION OF SERIES 1993 REVENUE BONDS PRICED BY A ROBINSONHUMPHREY CO GROUP YIELDS RANGE FROM 25 IN 1994 TO 539 IN 2025 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MISSOURI 1188 MILLION OF SERIES A 1993 REFUNDING BONDS FOR THE CONVENTION AND SPORTS FACILITY PROJECT PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 275 IN 1994 TO 565 IN 2021 MOODY'S RATED THE BONDS SINGLEA1 S&P ASSIGNED A SINGLEAPLUS RATING AND FITCH INVESTORS SERVICE INC ASSIGNED A DOUBLEA RATING FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1658 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS MITSUBISHI OIL CO JAPAN 10 BILLION YEN OF 42 EUROBONDS DUE DEC 24 2003 AT ISSUE AND FIXED REOFFER PRICE 10025 VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS PRICED TO YIELD 417 FEES 03 SUDWEST LB CAPITAL MARKETS PLC GERMAN PARENT 175 MILLION MARKS OF RESET EURONOTES DUE JAN 12 1999 AT ISSUE PRICE 10145 AND REOFFERED AT 997 VIA MORGAN STANLEY GMBH FOR FIRST YEAR COUPON PAYS 6125 THEREAFTER COUPON IS RESET AT 24875 MINUS FOUR TIMES FIVEYEAR MARK SWAP RATE GUARANTOR SUDWESTDEUTSCHE LANDESBANK FEES TWO TORDOM AUSTRALIA LTD AUSTRALIA 100 MILLION CANADIAN DOLLARS OF 625 EUROBONDS DUE DEC 29 1999 AT ISSUE PRICE 100342 VIA SCOTIA MCLEOD INC REOFFERED 99342 AT TO YIELD 637 A MARGIN OF 42 BASIS POINTS ABOVE THE 575 CANADIAN GOVERNMENT BOND DUE 1999 GUARANTOR TD BANK LTD FEES 1875 VIENNA AUSTRIAN MUNICIPALITY 400 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 30 1996 CARRYING A 4 COUPON AT ISSUE PRICE 1019 VIA MERRILL LYNCH BANK FEES 125 9312140024 931214 INTERNATIONAL GRUPO TELEVISA CHAIRMAN TO GET TIGHTER CONTROL SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY THE WEALTHY CHAIRMAN OF MEXICAN MEDIA COLOSSUS GRUPO TELEVISA SA IS SELLING 488 MILLION OF HIS STAKE IN THE COMPANY IN A GLOBAL SECONDARY OFFERING TODAY EMILIO AZCARRAGA MILMO CONSIDERED TO BE LATIN AMERICA'S WEALTHIEST MAN AND FOUR OTHER TELEVISA BOARD MEMBERS ARE OFFERING SHARES REPRESENTING 10 OF THE TELEVISION COMPANY IN A 1 BILLION GLOBAL SECONDARY ISSUE COMPLETE WITH A LISTING ON THE NEW YORK STOCK EXCHANGE INVESTORS GENERALLY TAKE IT AS A BAD SIGN WHEN MANAGEMENT SELLS ITS SHARES BUT THIS IS NO ORDINARY SALE ACCORDING TO THE PROSPECTUS MR AZCARRAGA MILMO WILL USE THE PROCEEDS TO PAY OFF A 750 MILLION STAKE PURCHASED FROM HIS SISTER LAURA AZCARRAGA DE WACHSMAN AS A RESULT MR AZCARRAGA MILMO WILL HAVE EVEN TIGHTER CONTROL OVER THE SPANISHLANGUAGE BROADCASTER AFTER TODAY'S OFFERING MR AZCARRAGA MILMO WILL BE LEFT WITH A 26 STAKE IN TELEVISA BEFORE ADDING THE 12 STAKE FROM HIS SISTER THAT WILL MORE THAN DOUBLE THE 175 STAKE HE HELD AFTER TELEVISA'S INITIAL PUBLIC OFFERING MR AZCARRAGA MILMO WILL ALSO GAIN VOTING CONTROL OVER TELEVICENTRO THE CORE GROUP OF SHAREHOLDERS GIVING HIM ULTIMATE SAY OVER CORPORATE POLICY AND DIRECTION AZCARRAGA'S DONE PRETTY WELL SO FAR SAID AN ANALYST WITH A MEXICAN BROKERAGE INVOLVED IN THE SECONDARY ISSUE'S SYNDICATE BUT YOU'D LIKE TO BELIEVE THE COMPANY'S FUTURE DOESN'T ALL RIDE ON HIM ESPECIALLY NOW MR AZCARRAGA MILMO IS SEEN IN MEXICO AS THE EMBODIMENT OF TELEVISA'S TOUGHTALKING CORPORATE CULTURE AND SOME INVESTORS WORRY ABOUT TELEVISA'S OVERCONFIDENCE THE FACT THAT TELEVISA'S THREE NATIONAL NETWORKS COMMAND AN 85 SHARE OF MEXICO'S TELEVISION AUDIENCE MAY MAKE IT SEEM LIKE THE COMPANY CAN AFFORD TO BE CONFIDENT BUT COMPETITORS ARE BEGINNING TO MAKE THEIR EXISTENCE KNOWN THE ISSUE WHICH WILL TRADE UNDER THE SYMBOL TV ON THE NEW YORK STOCK EXCHANGE HAS BEEN PRICED AT 64 A SHARE IN AN UNDERWRITING LED BY GOLDMAN SACHS & CO EACH GLOBAL DEPOSITARY SHARE REPRESENTS TWO PARTICIPATION SHARES IN TELEVISA IN MEXICAN TRADING YESTERDAY TELEVISA SHARES ROSE 10 CENTAVOS TO 10040 NEW PESOS 3235 9312140023 931201 REVIEW & OUTLOOK EDITORIAL MAYHEM OR MAYHEW AS WITH SO MANY POLITICAL DEBATES THE ONE NOW RAGING IN BRITAIN OVER THE GOVERNMENT'S SECRET CONTACTS WITH IRISH TERRORISTS MISSES THE POINT THE POINT IS THAT THERE IS A NASTY LITTLE WAR IN NORTHERN IRELAND THAT SEEMS TO GET NASTIER EVERY YEAR FOR ALL KINDS OF GOOD REASONS IT NEEDS TO BE STOPPED THAT IS OR SHOULD BE THE ISSUE NOT WHETHER SOMEONE HAD SECRET CONTACTS WITH ONE SIDE OR THE OTHER GIVEN THE SIZE OF NORTHERN IRELAND AND THE CONSANGUINITY OF ITS PEOPLE YOU COULD RAISE YOUR VOICE ON A STREET CORNER IN BELFAST AND BE JUSTLY ACCUSED OF HAVING CONTACTS WITH THE IRA AND LOYALIST ARMIES SIMULTANEOUSLY YOUR WORDS WOULD BE PASSED ALONG GOVERNMENTS ARE ENGAGED IN SECRET CONTACTS WITH SOMEONE OR OTHER MOST OF THE TIME AND THEY USUALLY FIND WAYS OF EVADING QUESTIONS ON THESE SENSITIVE MATTERS EVEN TO THE POINT OF SHADING THE TRUTH BUT LET'S SAY THAT THE CRITICS WIN THE DAY AND JOHN MAJOR IS FORCED TO JETTISON NORTHERN IRELAND SECRETARY SIR PATRICK MAYHEW WHAT THEN HOPES FOR PEACE WOULD AGAIN BE DASHED AND THIS SILLIEST OF SILLY WARS WILL GO ON AND ON IT WOULD CONTINUE TO EMBARRASS THE CIVILIZED PEOPLE OF BOTH THE UNITED KINGDOM AND THE IRISH REPUBLIC NOT TO MENTION THOSE ALL OVER THE WORLD WHO LIKE TO BELIEVE THAT DEMOCRACIES SETTLE CONFLICTS WITH BALLOTS INSTEAD OF BULLETS IT WILL CONTINUE TO COST INNOCENT LIVES ADDING TO THE 3100 WHO ALREADY HAVE DIED AND IF IT GOES ON ANOTHER 23 YEARS OR 50 NEITHER SIDE WILL BE ANY CLOSER TO WINNING THAN THEY ARE NOW ALL THE DECENT PEOPLE OF THE IRISH REPUBLIC AND BRITISH ISLES WOULD LIKE TO PUT THIS FIGHT BEHIND THEM BUT IT'S RATHER DIFFICULT TO MAKE PEACE WITH ANYONE EVEN ODIOUS TYPES UNLESS YOU HAVE CONTACT WITH THEM SOMETIMES IT IS MORE PRUDENT TO KEEP THOSE CONTACTS SECRET UNTIL YOU LEARN WHETHER THEY ARE LEADING ANYWHERE MOREOVER IT IS HARD FOR US TO SEE WHY THE PRESENT UNIONIST LEADERSHIP HAS MUCH OF A REMAINING CLAIM TO ANYONE'S SYMPATHY OR SUPPORT THEIR HARDLINERS ARE NOT WORSE THAN THE BLOODSTAINED IRA THUGS WHO PLANT BOMBS IN PUBLIC PLACES BUT AS THIS CONFLICT WEARS ON THEY ARE COMING TO BE REGARDED BY A WEARY PUBLIC AS LITTLE BETTER AFTER A QUARTER CENTURY THE RANTINGS OF THE REV IAN PAISLEY GROW MORE AND MORE TIRESOME THE LOYALISTS HAVE CLAIMED MORE VICTIMS THIS YEAR THAN HAS THE IRA AN ASSOCIATED PRESS BODY COUNT CREDITS THEM WITH 43 CORPSES THE IRA 32 NOTHING IN THE LAWS OF NATURE SAYS IRISH CATHOLICS AND IRISH PROTESTANTS MUST ALWAYS FIGHT EACH OTHER THEY ARE INDISTINGUISHABLE IN APPEARANCE AND LANGUAGE THEY WORSHIP THE SAME GOD AS A SIGN OF PROGRESS THE ECONOMIST DESCRIBES THE CITY COUNCIL IN DERRY WHERE CATHOLICS AND PROTESTANTS ARE WORKING TOGETHER WITH SOME MEASURE OF HARMONY AND WHERE THERE NOW IS IN LARGE DEGREE CIVIL ORDER THE BRITISH AND IRISH GOVERNMENTS WOULD LIKE TO BUILD ON THAT MODEL WORKING OUT AN ARRANGEMENT THAT WILL GIVE EACH SOME MEASURE OF RESPONSIBILITY MARGARET THATCHER AND GARRETT FITZGERALD BEGAN THAT PROCESS EIGHT YEARS AGO WITH THE SIGNING OF A HISTORIC ACCORD THAT SET UP AN INTERGOVERNMENTAL CONFERENCE GIVEN THE POTENTIAL FOR COOPERATION BETWEEN THESE TWO COUNTRIES BOTH OF WHICH ARE MEMBERS OF THE EUROPEAN COMMUNITY IT SEEMS UNLIKELY THAT ONE OR THE OTHER WILL SELL ANYONE DOWN THE RIVER WHICH IS THE FEAR MILITANTS ON BOTH SIDES CONSTANTLY SEEK TO CREATE IT WOULD BE NICE IF THESE EFFORTS COULD BE CARRIED FORWARD WITHOUT POLITICIANS IN WESTMINSTER USING THE SLIGHTEST OF PRETEXTS TO TURN UP THE HEAT THEIR MOTIVES ARE SUSPECT AND UNWORTHY THEY WOULD SERVE THEIR CONSTITUENCIES FAR BETTER IF THEY ABANDONED OPPORTUNISM AND DID THEIR OWN PARTS TO BRING AN END TO THE KILLING SEE RELATED LETTER LETTERS TO THE EDITOR ETHNIC IDENTITY A PART OF TROUBLES IN ULSTER WSJ DEC 14 1993 9312010004 YY93 MM12 9312140022 931214 MARKETING & MEDIA MARKETSCAN FLAVOREDSODA GROWTH OUTPACES COLAS AS THIRST FOR NOVELTY GROWS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL SOME UNLIKELY BEVERAGES FLAVORED SODAS LOADED WITH SUGAR AND CAFFEINE ARE MAKING A BIG SPLASH IN THE SOFTDRINK MARKET FLAVOREDSODA SALES ARE GROWING MORE THAN TWICE AS FAST AS COLA SALES IN SUPERMARKETS THIS YEAR ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE DR PEPPER AND MOUNTAIN DEW SALES FOR EXAMPLE ARE UP 10 EACH AT GROCERY STORES FOR THE 40 WEEKS ENDED OCT 3 COLAS STILL ACCOUNT FOR NEARLY 70 OF ALL SOFT DRINKS CONSUMED BUT MORE AND MORE PEOPLE ARE LOOKING FOR SOMETHING DIFFERENT AND ARE NO LONGER WILLING TO SACRIFICE TASTE DIET COLAS FUELED MUCH OF THE INDUSTRY'S GROWTH IN THE 1980S BUT NOW CONSUMERS WANT FULLFLAVORED DRINKS OFTEN OVERPOWERINGLY SWEET CONSEQUENTLY BIG BEVERAGE COMPANIES ARE PUMPING MORE MONEY INTO ADVERTISING AND INSTORE PROMOTIONS FOR FLAVORED BRANDS BEGINNING THIS WINTER PEPSICO INC IN PURCHASE NY PLANS TO LOUDLY PROMOTE ITS NINE FRUITFLAVORED SLICE BRANDS WHICH HAVE RECEIVED VIRTUALLY NO ADVERTISING SUPPORT IN RECENT YEARS AND COCACOLA CO IN ATLANTA IS PUSHING ITS DR PEPPERCOMPETITOR MR PIBB AS WELL AS AN EXPANDED LINE OF MINUTE MAID FLAVORS FLAVORED DRINKS SAY IN THEIR OWN WAY THAT COLA IS TIRED AND THEY OFFER SPARK SAYS TOM PIRKO A NEW YORK BEVERAGE CONSULTANT MARKETING CONSULTANT GARY STIBEL OF NEW ENGLAND CONSULTING GROUP SAYS IT'S A FUNCTION OF BOREDOM THE MARKETING LESSON HE ADDS IS THAT YOU SIMPLY CANNOT REST ON YOUR LAURELS AND ASSUME ONE BRAND WILL FIT ALL CONSUMERS' NEEDS STILL IT DOESN'T TAKE A FANCY GLASS BOTTLE OR EXOTIC NEW FRUIT DRINK TO SWAY SUCH BEVERAGE SWITCHERS THEY'RE OPTING FOR BRANDS THAT ARE JUST ABOUT AS WELL KNOWN AS THE BIG COLAS PEOPLE WANT TO STAY IN THE MAINSTREAM BUT ALSO WANT TO BE DISTINCTLY DIFFERENT MR PIRKO SAYS ADVERTISING OVER THE YEARS HAS GIVEN DR PEPPER AND MOUNTAIN DEW FOR EXAMPLE A WILD WACKY AND FASTMOVING REPUTATION HE SAYS AND MORE THAN ANY OTHER FLAVORED DRINKS THOSE SODAS HAVE STRONG APPEAL BECAUSE THEIR PROPRIETARY FORMULA GIVES THEM MORE MYSTERY THAN SAY A PLAIN ORANGE DRINK SAYS HARRY HERSH CHIEF EXECUTIVE OF PEPCOM INDUSTRIES A PEPSI BOTTLER IN RALEIGH NC NOR DO THESE DRINKS PROMISE ANYTHING PARTICULARLY GOOD FOR THEIR USERS IN FACT MOUNTAIN DEW A PEPSI PRODUCT HAS 41 MORE CAFFEINE THAN A PEPSICOLA BUT THAT MAY SUIT '90S CONSUMERS JUST FINE THERE'S BEEN A BACKLASH AGAINST HEALTH TRENDS SAYS JUDITH LANGER A NEW YORK MARKETING CONSULTANT PEOPLE ARE FED UP WITH IT AND THEY WANT A GOOD TIME IT'S HARD TO REMEMBER THAT ONE DAY THEY'LL BE MIDDLEAGED THEY'LL BE FAT AND THEY'LL DIE FLAVORS TEND TO APPEAL MOST TO YOUNG PEOPLE THE CORE GROUP OF SODA DRINKERS BLACK CONSUMERS ALSO DRINK MORE MOUNTAIN DEW DR PEPPER AND CHERRY COKE THAN THE GENERAL POPULATION ACCORDING TO SURVEYS BY SIMMONS MARKET RESEARCH IN NEW YORK DIFFERENT REGIONS OF THE COUNTRY ARE ALSO PARTIAL TO CERTAIN FLAVORS 40 OF DR PEPPER'S SALES ARE IN TEXAS AND SURROUNDING STATES THE SOUTHEAST IS A STRONGHOLD OF MOUNTAIN DEW ORANGE DRINKS APPEAL TO BOSTONIANS AND GRAPE POP SELLS PARTICULARLY WELL IN NASHVILLE TENN MOUNTAIN DEW AND DR PEPPER IN PARTICULAR ARE THRIVING PARTLY BECAUSE THEY COMMAND THE BOTTLING CLOUT OF COKE AND PEPSI DR PEPPER 80 OF WHICH IS DISTRIBUTED THROUGH THE COKE OR PEPSI BOTTLING SYSTEMS IS OFTEN PUT ON ENDAISLE DISPLAYS RIGHT ALONG WITH THE COLAS THE SAME DEMOGRAPHIC GOING AFTER A COKE AND PEPSI TODAY ARE LOOKING FOR A CHANGE OF PACE AND AN ALTERNATIVE AND THESE ARE SITTING RIGHT IN THEIR FACE SAYS MICHAEL BELLAS PRESIDENT OF BEVERAGE MARKETING CORP DR PEPPER/SEVENUP COS IS ALSO KNOWN FOR ITS SAVVY RELATIONSHIP WITH BOTTLERS THE COMPANY IN DALLAS IS INCREASING THE NUMBER OF WEEKS IT SPENDS AT COVETED GROCERY STORE ENDAISLE DISPLAYS AND ON SPECIAL DISCOUNT DISPLAYS BY DOUBLING THE AMOUNT IT SPENT ON SUCH MARKETING EXPENSES OVER THE LAST TWO YEARS AND ITS REPRESENTATIVES ARE KNOWN WITHIN THE INDUSTRY FOR COURTING CUSTOMERS WITH SUCH NICETIES AS FOOTBALL GAMES AND DUCK HUNTING THERE'S AN INORDINATE AMOUNT OF BONDING SAYS JESSE MEYERS PUBLISHER OF THE BEVERAGE DIGEST TRADE PUBLICATION FLAVORED SODAS ARE PURCHASED HEAVILY IN SINGLESERVE CONTAINERS AT PLACES LIKE CONVENIENCE STORES AND VENDING MACHINES TO BOOST SUPERMARKET SALES DR PEPPER IS PUTTING 81 MILLION COUPONS WITH 35 CENTS TO 75 CENTS OFF ON ITS LARGE PACKAGES THIS YEAR THE COMPANY ALSO SAID IT BOOSTED AD SPENDING ABOUT 50 SINCE 1990 TO ABOUT 65 MILLION THIS YEAR MINUTE MAID AND SLICE BRAND SALES PLUMMETTED THIS YEAR REFLECTING VIRTUALLY NO ADVERTISING SUPPORT IN RECENT YEARS BUT LAST MONTH PEPSI GAVE SLICE STARKER PACKAGING BLACK CANS WITH A SPLASH OF COLOR AND PRINTED THE DISCOUNT PRICE 79 CENTS TO 109 DEPENDING ON THE MARKET ON THE TWOLITER PACKAGE THIS WINTER THE COMPANY SAYS IT'S MAKING A LOT OF NOISE FOR THE BRAND BY RUNNING A TELEVISION AD CAMPAIGN WITH POPULAR RHYTHM AND BLUES GROUP BOYZ II MEN MAKING ENDAISLE DISPLAY RACKS EXCLUSIVELY FOR SLICE PUTTING UP BIG INSTORE BANNERS FEATURING THE SINGERS AND THE BRAND AND ADDING TO THE NUMBER OF SUPERMARKETS THAT STOCK IT COKE MEANWHILE IS PUSHING ITS DR PEPPERCOMPETITOR MR PIBB WITH DISCOUNTING AND INSTORE DISPLAYS INDUSTRY EXECUTIVES SAY IN SOME MARKETS THERE ARE SPECIAL DISPLAYS IN THE MIDDLE OF STORE AISLES FOR FLAVORED DRINKS EXCLUSIVELY MR PIBB MELLO YELLO AND MINUTE MAID AT 89 CENTS PER TWOLITER BOTTLE IN NOVEMBER COKE SWITCHED ADVERTISING AGENCIES TO PROMOTE TWO OF ITS FLAVORED SODAS CHERRY COKE AND MELLO YELLO AND COKE EXPANDED ITS MINUTE MAID LINE OF FRUIT SODAS AND BEGAN DOING INSTORE PROMOTIONS FOR THE BRAND ACCORDING TO A BOTTLER COKE WOULDN'T COMMENT ON SPECIFIC PLANS FOR ITS BRANDS 9312140021 931214 BUSINESS BRIEF OHIO EDISON CO FOURTHPERIOD LOSS SLATED BUT FISCAL 1994 PROFIT SEEN OHIO EDISON CO SAID IT WILL TAKE CHARGES OF 276 MILLION AND RECORD A GAIN OF 58 MILLION FOR THE FOURTH QUARTER RESULTING IN A NET LOSS FOR THE PERIOD THE COMPANY DECLINED TO ESTIMATE THE SIZE OF THE LOSS BUT SAID IT WILL BE PROFITABLE FOR THE YEAR ENDING MARCH 31 IN THE YEAREARLIER PERIOD OHIO EDISON HAD NET INCOME OF 73 MILLION OR 44 CENTS A SHARE ON REVENUE OF 6042 MILLION OF THE TOTAL CHARGE 248 MILLION IS FOR OHIO EDISON'S WRITEOFF OF ITS INVESTMENT IN UNIT 2 OF THE PERRY NUCLEAR POWER PLANT IN LAKE COUNTY OHIO THE REMAINING 28 MILLION OF THE CHARGE IS FOR FUELCOST RECOVERY AT OHIO EDISON'S PENN POWER UNIT AND FOR THE WRITEOFF OF OBSOLETE POWERGENERATION EQUIPMENT CURRENTLY IN INVENTORY THE ONETIME ACCOUNTING GAIN IS FOR RECOGNIZING ELECTRICITY USED BUT UNBILLED AT YEAR'S END OHIO EDISON CO EXPECTS A PROFIT FOR THE YEAR ENDING DEC 31 AN ARTICLE TUESDAY INCORRECTLY SAID THE COMPANY'S YEAR ENDS MARCH 31 9312140020 931214 BUSINESS BRIEF NORTHSTAR HEALTH SERVICES INC FIRM COMPLETES ACQUISITION OF REHABILITATION CONCERN NORTHSTAR HEALTH SERVICES INC PITTSBURGH SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF PRIVATELY HELD NW REHABILITATION ASSOCIATES INC TERMS WEREN'T DISCLOSED BUT NORTHSTAR SAID THE ACQUISITION WOULD INCREASE ITS REVENUE BY ABOUT 65 WHEN THE DEAL WAS ANNOUNCED IN AUGUST NORTHSTAR ESTIMATED THE ACQUISITION WOULD INCREASE ITS REVENUE BY 71 NORTHSTAR'S REVENUE IN 1992 WAS ABOUT 37 MILLION A NORTHSTAR SPOKESMAN SAID THE DIFFERENCE IN PROJECTED REVENUE IS DUE TO ACQUISITIONS NORTHSTAR MADE SINCE IT AGREED TO ACQUIRE NW REHABILITATION THIS SUMMER 9312140019 931214 LETTERS TO THE EDITOR CONSERVATISM AND POPULISM DON'T MIX IRVING KRISTOL WRONGLY RENDERS PAT BUCHANAN THE SERVICE OF OVERESTIMATING THE COGENCY OF HIS APPEAL TO THE AMERICAN PUBLIC FROM PEROT TO BUCHANAN EDITORIAL PAGE NOV 24 MR BUCHANAN'S CONSERVATISM OF THE HEART IS RIFE WITH INCONSISTENCIES APPARENT EVEN TO THE ALLEGEDLY UNSOPHISTICATED VOTERS WHO ARE HIS TARGETED CONSTITUENCY FOR EXAMPLE TRADE PROTECTIONISM CLEARLY REDOUNDS TO THE DETRIMENT OF RESTRICTIVE IMMIGRATION AN ECONOMY OF AMERICA'S SIZE WILL IMPORT EITHER PRODUCTS MADE BY FOREIGNERS OR THE FOREIGNERS THEMSELVES EXISTING PROTECTIONIST MEASURES ALREADY DRIVE JAMAICAN AND HAITIAN IMMIGRANTS TO OUR SHORES ALTHOUGH CARIBBEAN BLACKS LIKE GEN COLIN POWELL'S PARENTS ARE NOT MR BUCHANAN'S DREADED ZULUS THEY WOULD NEVERTHELESS BE UNWELCOME IN HIS VERSION OF OUR OLD REPUBLIC MR BUCHANAN'S WORST INCONSISTENCY LIES IN HIS ATTEMPT TO MERGE CONSERVATIVE SOCIAL VALUES WITH POPULIST ECONOMICS TO A FAR GREATER DEGREE THAN SOCIAL CONSERVATISM POPULISM'S ECONOMIC THRUST IS SUITED TO SATISFACTION BY NEW GOVERNMENT PROGRAMS INEVITABLY A GOVERNMENT LED BY A BUCHANANITE ELITE WOULD PRODUCE STATIST ECONOMICS RATHER THAN MORAL REGENERATION THE SORDID AFFAIR WOULD INDEED BE NATIVIST BUT NOT CONSERVATIVE IN THE BEST TRADITION OF AMERICAN CONSERVATISM IN ORDER TO SUPPORT HIS CLAIM THAT PAT BUCHANAN IS IN SYNC WITH THE PUBLIC ON HIS PROPOSED RADICAL RESTRICTION OF IMMIGRATION MR KRISTOL SUGGESTS THAT YOU SPEAK TO THE TAXI DRIVER ON YOUR NEXT TRIP HAS MR KRISTOL TAKEN A TAXI LATELY NEARLY ALL CABBIES CERTAINLY IN NEW YORK CITY AND WASHINGTON DC ARE IMMIGRANTS I DOUBT SERIOUSLY THEY WILL PROVIDE MR BUCHANAN WITH ANY MORE ENTHUSIASTIC SUPPORT THAN WOULD I AND INDEED MILLIONS OF AMERICANS WHO ARE THEMSELVES IMMIGRANTS OR WHO HAVE IMMIGRANT PARENTS I SEE IN MR KRISTOL'S PIECE THAT A BELTWAY PUNDIT HAS CLIMBED DOWN FROM HIS OLYMPIAN PERCH TO TELL THE MEMBERS OF THE GOVERNING CLASS THAT PAT BUCHANAN MIGHT PUT THEM OUT OF WORK BUT THAT THERE IS NO REASON FOR THEM TO BE CONCERNED ABOUT ROSS PEROT I WILL NOT SPEAK OF MR BUCHANAN'S FUTURE IN AMERICAN POLITICS BUT I DO FIND MR KRISTOL'S DISMISSAL OF MR PEROT'S GROWING FOLLOWING TO BE TYPICAL OF THE BELTWAY MENTALITY THESE PUNDITS FAIL TO UNDERSTAND HOW A SIMPLE IDEA SUCH AS RESPONSIBILITY CAN IGNITE STRONG EMOTIONS IN MIDDLE AMERICA MR KRISTOL HAS ALREADY FORGOTTEN THAT IT WAS MR PEROT WHO FORCED THE IDEA OF A RESPONSIBLE DEFICIT REDUCTION INTO THE NATIONAL DEBATE HE IGNORES THE FACT THAT MANY FRESHMEN CONGRESSMEN PICKED UP THE IDEA OF A RESPONSIBLE DEFICIT REDUCTION FOR THEIR WINNING CAMPAIGNS AND ARE CONTINUING TO PRESS THE RELUCTANT CONGRESSIONAL LEADERSHIP FOR A RESPONSIBLE APPROACH TO THE DEFICIT MR PEROT IS NOT A POLITICAL LEADER HIS SUPPORTERS ARE NOT A POLITICAL PARTY THEY DO HAVE A FIRMLY HELD BELIEF THAT UNLESS RESPONSIBLE PEOPLE ARE ELECTED TO CONGRESS DEMOCRATS OR REPUBLICANS THE COUNTRY THE NEXT GENERATION INHERITS WILL RESEMBLE A BANANA REPUBLIC MR KRISTOL PROPOSES THAT PAT BUCHANAN MAY BE STRONG ENOUGH TO WRECK THE GOP AND THEN LISTS THE MAIN ELEMENTS OF MR BUCHANAN'S SHORT SIMPLEMINDED AND COGENT AGENDA HIS EFFORT TO TRIVIALIZE MR BUCHANAN'S AGENDA EXPOSES FLAWS INHERENT TO MR KRISTOL'S BRAND OF CONSERVATISM TRUE CONSERVATIVES RECOGNIZE THE ELEMENTS OF MR BUCHANAN'S AGENDA AS THEIR OWN MR KRISTOL'S PROBLEM WITH THE AGENDA IS OBVIOUS IT'S NOT CROSSDRESSED LIBERALISM CRITIQUING THE CONCEPT OF AN AMERICA FIRST FOREIGN POLICY MR KRISTOL STUMPS FOR BOUTROS BOUTROSGHALI WITH HIS FEAR OF NATIONALISM AND THE PROSPECT OF FORGETTING THE WILSONIAN DREAM AS WELL AS ALL SUBSEQUENT DREAMS OF A NEW WORLD ORDER MR KRISTOL'S VISION OF A CONSERVATIVELED WELFARE STATE HAS BEEN ARTICULATED PREVIOUSLY AND NOW HE CONTENDS THAT MR BUCHANAN'S APPROACH TO WELFARE AND CRIME PROBLEMS GOES TOO FAR AND IS RUTHLESS I SUPPOSE ONE WOULD BE LABELED SIMPLEMINDED BY SUGGESTING THAT THE SOCIALIST POLICIES RUTHLESS IN THEIR OWN RIGHT THAT HAVE LED TO SOCIETY'S DISINTEGRATION MUST BE TOSSED ASIDE AND REMEMBERED AS FAILURES INSTEAD OF TARGETS OF BUREAUCRATIC REFORM MR KRISTOL'S ASSESSMENT MISSES OR AVOIDS THE MAJOR ELEMENT OF THE BUCHANAN AGENDA MR BUCHANAN IS STAUNCHLY AGAINST BIG GOVERNMENT IN CONTRAST NEOCONSERVATISM DOES NOT WANT TO SLAY THE WAYWARD DRAGON BUT TO MASTER IT WHILE ALSO LEADING THE REPUBLICAN PARTY THOUGH PAT BUCHANAN MAY NOT BE STRONG ENOUGH TO WRECK THE GOP THE IMPOTENCE OF MR KRISTOL'S NEOCONSERVATISM CERTAINLY COULD 9312140018 931214 OFFICIALS CLOSER TO COMPLETING A TRADE ACCORD TARIFF TALKS ARE CONCLUDED OTHER ISSUES DROPPED FIGHT IN CONGRESS SEEN BY BOB DAVIS AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA NEGOTIATORS MOVED TO THE EDGE OF COMPLETING A WORLDTRADE PACT BY WRAPPING UP NEARLY ALL TARIFF ISSUES AND GIVING UP ON SOME STICKY DISPUTES BUT THE DEALS THEY STRUCK ARE ALREADY PITTING US COMPANIES AGAINST EACH OTHER AND ENSURING A TOUGH FIGHT IN CONGRESS NATIONS ARE SHOWING A WILLINGNESS TO MOVE FINALLY FROM PREVIOUSLY ENTRENCHED POSITIONS AND DEAL SAID PETER SUTHERLAND DIRECTOR GENERAL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH IS OVERSEEING THE TALKS ALTHOUGH THE REMAINING ISSUES STILL COULD DERAIL A TRADE DEAL SOME NEGOTIATORS ARE PRIVATELY PREDICTING THAT THEY MAY FINISH THE TALKS BEFORE THE DEADLINE OF MIDNIGHT TOMORROW WASHINGTON TIME THAT'S WHEN A CONGRESSIONAL MANDATE EXPIRES FOR US NEGOTIATORS WHO UNTIL THEN CAN CUT A DEAL THAT LAWMAKERS WOULDN'T BE ABLE TO AMEND BEFORE A VOTE IN FACT PRINTING OF A FINAL TEXT OF THE TRADE ACCORD BEGAN MONDAY NIGHT THE PRINTING PRESSES AT THE CENTRE WILLIAM RAPPARD WHERE GATT IS HEADQUARTERED HAVE STARTED TO ROLL SAID A GATT OFFICIAL WHO ADDED THAT WE WILL CONTINUE PRINTING THROUGH THE NIGHT DELEGATION HEADS PLAN TO MEET AT 10 AM TODAY THE OFFICIAL SAID AND A TEXT OF 400 TO 450 PAGES IS TO BE READY BY MIDDAY IN RECENT DAYS NEGOTIATIONS ON TARIFFS ADVANCED AS THE US WORKED OUT A DEAL IN WHICH THE EUROPEAN COMMUNITY WOULD MAINTAIN ITS PRACTICE OF NOT IMPOSING TARIFFS ON MICROPROCESSORS AND WOULD REDUCE TARIFFS ON MEMORY CHIPS AND OTHER COMPUTER DEVICES TO ABOUT 10 FROM 14 THE US SEMICONDUCTOR INDUSTRY HAD WANTED STEEPER REDUCTIONS BUT YESTERDAY IT SEEMED SATISFIED WITH THE DEAL IN ADDITION THE US WAS CONTINUING TO PUSH FOR STEEP REDUCTIONS IN TARIFFS ON CHEMICALS ODDLY ENOUGH ONE OF THE BIGGEST BOOSTS TO NEGOTIATIONS IS A STEADY PARING DOWN OF OBJECTIVES YESTERDAY THE US AND THE EC ESSENTIALLY AGREED TO REMOVE MARITIME ISSUES FROM THE NEGOTIATIONS GREEK AND US SHIPPERS HAD OBJECTED TO LIBERALIZATION AND THREATENED TO TIE UP THIS ROUND OF TALKS SIMILARLY THE US AND THE EC ARE CLOSE TO WORKING OUT A DEAL IN WHICH THE ISSUE OF CIVILAIRCRAFT SUBSIDIES IS TAKEN OFF THE TABLE UNDER THAT PLAN THE TWO PARTIES WOULD FOLLOW EXISTING AGREEMENTS AND AGREE TO NEGOTIATE OVER AIRCRAFT SUBSIDIES FOR A YEAR DURING THAT TIME BOTH THE US AND THE EC WOULD AGREE NOT TO PRESS UNFAIRSUBSIDY CHARGES AT THE GATT AS WITH THE MARITIME ARRANGEMENT THE CIVILAIRCRAFT DEAL ESSENTIALLY RATIFIES THE STATUS QUO AND LETS THE NEGOTIATIONS CONTINUE ANOTHER STICKING POINT IS FINANCIAL SERVICES THE US HAS PROPOSED ALLOWING EXPANSION IN ITS MARKET ONLY TO THOSE COUNTRIES THAT AGREE TO LET IN US FINANCIAL SERVICES EVEN THOUGH THIS RUNS COUNTER TO THE GATT PRACTICE OF TREATING ALL COUNTRIES THE SAME AS AN ALTERNATIVE OTHER COUNTRIES PROPOSED THAT THE US LET ANYONE ENTER ITS MARKET WITH FINANCIAL SERVICES FOR THREE YEARS AFTER WHICH THE ISSUE COULD BE REVIEWED BUT THE US DIDN'T AGREE TO THIS PROPOSAL AND THE OPENING OF MARKETS WORLDWIDE FOR FINANCIAL SERVICES WHICH US BANKS HAVE PUSHED FOR MIGHT BE DROPPED FROM THE NEGOTIATIONS ANOTHER UNRESOLVED DISPUTE WHICH COULD UNRAVEL THE BROAD PACKAGE IS THE USEC FIGHT OVER MOVIES THE US WANTS THE EC PARTICULARLY FRANCE TO REVISE ITS QUOTAS ON THE BROADCAST OF US PROGRAMMING AND TO SPLIT REVENUES FROM LEVIES ON US FILMS BUT THE EC HAS HELD FIRM THE US YESTERDAY PROPOSED A COMPROMISE UNDER WHICH THE EC COULD PROTECT ITS PROGRAMMERS SO THAT THEY WOULD HAVE THE MAJORITY OF PROGRAMS DURING PRIMETIME VIEWING IN EXCHANGE THE EC WOULD AGREE NOT TO TIGHTLY LIMIT NEW TECHNOLOGY THROUGH QUOTAS IN ADDITION HOLLYWOOD WOULD RECEIVE A SHARE OF EUROPEAN LEVIES ON MOVIES BUT WOULD AGREE TO SPEND THE MONEY IN EUROPE STILL IT'S FAR FROM CERTAIN THAT THE EC WILL GO ALONG WITH THE PROPOSALS EC TRADE MINISTER LEON BRITTAN CONSULTED WITH EC MINISTERS LAST NIGHT IN BRUSSELS THEN RETURNED HERE TO DISCUSS THE ISSUE WITH US TRADE REPRESENTATIVE MICKEY KANTOR SIR LEON WOULDN'T PROVIDE DETAILS OF THE MEETING I AM NOT GOING TO TALK TO A SCRUM SAID SIR LEON LIKENING A GROUP OF JOURNALISTS TO A RUGBY FORMATION MANY DEVELOPING COUNTRIES ARE UNHAPPY WITH THE EXPECTED GATT AGREEMENT BUT ARE EXPECTED TO GO ALONG NONETHELESS WHILE INDUSTRIALIZED NATIONS HAVE REFUSED TO ELIMINATE QUOTAS AND LOWER TARIFFS AS MUCH AS THE DEVELOPING COUNTRIES HOPED PARTICULARLY FOR THEIR AGRICULTURE AND TEXTILE PRODUCTS THEY FIGURE IT'S BETTER TO ACCEPT A SOSO DEAL THAN TO GO HOME WITH NO DEAL AT ALL THOUGH DEVELOPING COUNTRIES COMPLAIN THAT THE US AND EUROPE HAVE FARED BEST IN THE NEGOTIATIONS SOME OF THE DEALS THAT NEGOTIATORS HAVE MANAGED TO CUT DURING THE MARATHON TALKS ARE BOUND TO SPARK CONTROVERSY IN THE US LESS THAN A MONTH AFTER PRESIDENT CLINTON PROMISED TEXTILESTATE LAWMAKERS THAT HE WOULD PUSH FOR A 15YEAR PHASEOUT OF AN ARCANE QUOTA ARRANGEMENT THAT PROTECTS US INDUSTRIES FROM COMPETITION THE US AGREED TO A 10YEAR PHASEOUT INSTEAD THE DEAL IS STRUCTURED SO THAT COUNTRIES SUCH AS INDIA WOULD HAVE TO OPEN THEIR MARKETS TO US GOODS BEFORE THEIR QUOTAS ARE INCREASED NEVERTHELESS THE ARRANGEMENT WILL ENRAGE SOME ON CAPITOL HILL WHO AGREED TO VOTE FOR THE NORTH AMERICAN FREE TRADE AGREEMENT ONLY AFTER SECURING MR CLINTON'S PLEDGE FOR A 15 YEAR PHASEOUT THEY ARE PUTTING ABOUT TWO MILLION TEXTILE AND APPAREL JOBS IN THE UNITED STATES AT RISK SAID WILLIAM FARLEY CHIEF EXECUTIVE OF FARLEY INC WHO IS PLANNING TO RUN FULLPAGE NEWSPAPER ADVERTISEMENTS THAT READ GATT CRISIS TWO MILLION US JOBS HANG IN THE BALANCE THE US IS SPENDING ITS POLITICAL CAPITAL TO HELP THE US SEMICONDUCTOR INDUSTRY AND THAT HAS LED TO A BITTER DISPUTE BETWEEN CHIP MAKERS AND DRUG COMPANIES RULES EVEN BY THE RAREFIED STANDARDS OF GATT THIS FIGHT IS ARCANE THE SEMICONDUCTOR INDUSTRY OBJECTS TO PROVISIONS IN A DRAFT TRADE PACT THAT WOULD LET NATIONS LICENSE DOMESTIC COMPANIES TO PRODUCE GOODS EVEN IF THE COMPANY WITH A PATENT DOESN'T AGREE TO THE LICENSE ALAN WOLFF AN ATTORNEY FOR THE SEMICONDUCTOR INDUSTRY SAID HE WORRIES ABOUT RENEGADE GOVERNMENTS THAT WOULD ALLOW THEIR COMPANIES TO RIP OFF NEW COMPUTER CHIP DESIGNS AS A RESULT THE COMPUTERCHIP MAKERS WANT TO EXEMPT THEMSELVES FROM RULES ON SOCALLED COMPULSORY LICENSE RULES BUT THE DRAFT AGREEMENT PUTS FAIRLY STRICT LIMITS ON SUCH COMPULSORY LICENSES THAT'S WHY THE PHARMACEUTICAL COMPANIES WHOSE DRUGS NOW ARE COMMONLY COPIED WITH GOVERNMENT ASSENT BY COMPANIES IN ARGENTINA AND BRAZIL BACK THE DRAFT PACT EVEN THOUGH THE CLINTON ADMINISTRATION IS DOING ITS BEST TO CHANGE IT IF THE RULES ARE REOPENED TO RENEGOTIATION DRUG MAKERS ARGUE BRAZIL AND OTHERS WILL SEEK CHANGES THAT BENEFIT THEM SEPARATELY THE AGRICULTURAL PORTION OF THE GATT AGREEMENT RECEIVED A BOOST WHEN JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA ANNOUNCED EARLY THIS MORNING IN TOKYO THAT JAPAN WILL END ITS LONGSTANDING BAN ON IMPORTED RICE IN WASHINGTON MEANWHILE US OFFICIALS ARE RELIEVED THAT THEY RESOLVED DIFFERENCES WITH OTHER COUNTRIES OVER LANGUAGE IN THE GATT AGREEMENT THAT SPELLS OUT WHAT SORT OF TAXES GOVERNMENTS MAY LEVY ON FOREIGNERS WITHOUT RISKING CHARGES THAT THE TAXES ARE ILLEGAL BARRIERS TO TRADE ALTHOUGH TAX LAWS COMMONLY DISTINGUISH BETWEEN RESIDENTS AND NONRESIDENTS TRADE TREATIES OFTEN PROVIDE THAT A GOVERNMENT MAY NOT TREAT FOREIGN COMPANIES ANY LESS FAVORABLY THAN DOMESTIC COMPANIES THE AGREEMENT SPECIFIES THAT GATT RULES DON'T APPLY TO WITHHOLDING TAXES TAXES IMPOSED TO PREVENT TAX EVASION OR AVOIDANCE AND TAXES IMPOSED TO TAKE ACCOUNT OF THE FACT THAT SOME COMPANIES ARE TAXED ON WORLDWIDE INCOME AND SOME AREN'T 9312140017 931214 SOUTHWEST AIR TO BUY MORRIS FOR 129 MILLION STOCK DEAL CREATES STRONG LOWCOST COMPETITOR TO THE MAJOR AIRLINES BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL SOUTHWEST AIRLINES SAID IT AGREED TO BUY CLOSELY HELD MORRIS AIR FOR ABOUT 129 MILLION IN STOCK GIVING THE EMBATTLED GIANTS OF THE AIRLINE INDUSTRY AN EVEN MORE FEARSOME LOWCOST COMPETITOR THE NEWS SENT SOUTHWEST SHARES JUMPING 2 OR 59 TO CLOSE AT 36 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SOME AIRLINE ANALYSTS WERE HEARTENED AFTER BEING TOLD BY SOUTHWEST THAT THE ACQUISITION WOULD AUGMENT PERSHARE EARNINGS AND THAT REVENUE COULD GROW BY ABOUT 25 NEXT YEAR BECAUSE OF THE ACQUISITION ONLY A FEW MONTHS AGO ANALYSTS WORRIED THAT SOUTHWEST'S EXPANSION WAS TAPERING OFF BY ACQUIRING MORRIS AN UPSTART CARRIER BASED IN SALT LAKE CITY DALLASBASED SOUTHWEST WOULD COMBINE ITS OWN PROFITABLE LOWFARE LOWCOST OPERATIONS WITH A KINDRED COMPANY'S SOUTHWEST AND MORRIS FLY THE SAME TYPE OF POINTTOPOINT SERVICE AND EVEN THE SAME KIND OF JET BUT THE ACQUISITION WOULD SIGNIFICANTLY EXPAND THE REACH OF SOUTHWEST'S ROUTE STRUCTURE SOUTHWEST FLIES TO 37 CITIES PRIMARILY IN THE SOUTHWEST MIDWEST AND ON THE WEST COAST MORRIS FLIES TO 22 WESTERN CITIES MOREOVER THE ACQUISITION WILL ENABLE SOUTHWEST WHICH HAD PLANNED TO EXPAND IN THE WEST NEXT YEAR TO DEPLOY NEW JETS IN NEW MARKETS IN THE EAST AND MIDWEST THE COMPANY SAID YOU'VE GOT TO BELIEVE THAT AS THE COST PICTURE IMPROVES FOR SOUTHWEST THAT ELEVATES THE CHALLENGE TO AMERICAN AIRLINES UNITED AND DELTA AND EVERY OTHER CARRIER SAID VIVIAN LEE AN AIRLINE ANALYST WITH SMITH BARNEY SHEARSON THE BIGGEST AIRLINES HAVE LOST BILLIONS OF DOLLARS DURING THE PAST FOUR YEARS AND HAVE PONDERED STARTING SIMILAR SERVICES TO PAY FOR ITS PURCHASE OF MORRIS WHICH IS EXPECTED TO BE COMPLETED DEC 31 SOUTHWEST PLANS TO ISSUE 3574658 NEW SHARES SOUTHWEST'S CHIEF FINANCIAL OFFICER GARY KELLY SAID THE TRANSACTION WILL INCREASE THE AIRLINE'S COMMON SHARES OUTSTANDING BY ONLY 25 FROM THE CURRENT 144 MILLION COMMON SHARES WHILE MORRIS'S ASSETS REPRESENT 10 OF SOUTHWEST'S ASSETS AND SOUTHWEST'S FLEET SIZE WILL GROW BY 13 WE FEEL REALLY GOOD ABOUT OUR ABILITY TO HANDLE THIS HE SAID BOTH MR KELLY AND HERBERT D KELLEHER SOUTHWEST'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE PURCHASE WILL BOOST THE VALUE OF SOUTHWEST'S SHARES SOUTHWEST'S GROWTH IN THE PAST HAS BEEN INTERNALLY GENERATED AND ITS ONLY OTHER ACQUISITION OF MUSE AIR IN 1985 FOR 405 MILLION IN CASH AND 20 MILLION IN STOCK FLOPPED BECAUSE OF THE DIFFERENCES BETWEEN THE TWO CARRIERS MUSE WAS OPERATED INDEPENDENTLY OF SOUTHWEST WITH LARGER PLANES AND THE FULL AMENITIES SOUTHWEST SHUNS IN RETROSPECT MR KELLEHER CALLS THE MUSE AIR PURCHASE A RESCUE OPERATION THAT COULDN'T WITHSTAND A STRONG ASSAULT FROM OTHER CARRIERS MUSE AIR HAS SINCE FOLDED FOUNDED IN 1984 NINEYEAROLD MORRIS AIR BY CONTRAST HAS THRIVED DESPITE HEAVY COMPETITION FROM FAR LARGER AND STRONGER AIRLINES FOUNDED BY JUNE MORRIS WHO OWNS A TRAVEL AGENCY IN SALT LAKE CITY THE CARRIER TOOK FLIGHT AS A CHARTER IN 1984 FOR HER CLIENTS WHO WERE LOOKING FOR CHEAPER AIR SERVICE MORRIS BEGAN SCHEDULED SERVICE A YEAR AGO AND HAS BEEN FORCING FARES DOWN IN SALT LAKE CITY WHERE IT HAS BEEN TAKING PASSENGERS AWAY FROM GIANT DELTA AIR LINES IN 1992 WHEN MORRIS WAS STILL A CHARTER OPERATION IT HAD REVENUE OF 116 MILLION AND NET INCOME OF 53 MILLION SOUTHWEST BY CONTRAST HAD NET OF 91 MILLION ON REVENUE OF 169 BILLION YESTERDAY MR KELLEHER SAID THAT COMBINING THE TWO CARRIERS COULD TAKE TWO TO THREE YEARS SOUTHWEST WILL TAKE OVER MORRIS'S 50 MILLION OR SO IN DEBT MOST OF MORRIS'S 2000 EMPLOYEES WILL BE OFFERED JOBS AND SOUTHWEST WILL ALSO TAKE OVER THE LEASES OF MORRIS 21 BOEING 737 JETS COMBINING OPERATIONS SHOULD LET SOUTHWEST BE MORE EFFICIENT IN FUEL PURCHASES AIRCRAFT LEASING FINANCING AND INSURANCE AMONG OTHER THINGS MR KELLEHER SAID IN AN INTERVIEW YESTERDAY THAT SOUTHWEST HADN'T PLANNED TO MAKE ANY ACQUISITION BEFORE MORRIS EXECUTIVES APPROACHED HIM ABOUT TWO MONTHS AGO AND SUBSTANTIVE TALKS BEGAN A FEW WEEKS LATER SIMILARLY MORRIS EXECUTIVES SAID THEY HAD BEEN PONDERING ROUTES FOR EXPANSION AND HAD CONSIDERED GOING PUBLIC BUT ULTIMATELY DECIDED TO APPROACH SOUTHWEST ANOTHER FACTOR IN THE SALE WAS THE ILLNESS OF THE 62YEAROLD MRS MORRIS THE AIRLINE'S CHIEF EXECUTIVE OFFICER WHO WAS RECENTLY DIAGNOSED WITH BREAST CANCER DAVID NEELEMAN MORRIS AIR'S PRESIDENT SAID HER PROGNOSIS IS CONSIDERED GOOD 9312140016 931214 BUSINESS BRIEF BT FINANCIAL CORP CONCERN COMPLETES PURCHASE OF FIRSTSOUTH BANCORP INC BT FINANCIAL CORP JOHNSTOWN SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF CLOSELY HELD FIRSTSOUTH BANCORP INC BASED IN PITTSBURGH THE BANK HOLDING COMPANY SAID THE STOCK AND CASH TRANSACTION WAS VALUED AT ABOUT 18 MILLION UNDER TERMS FOR EACH FIRSTSOUTH SHARE FIRSTSOUTH SHAREHOLDERS RECEIVED 1350 IN CASH AND 0693 SHARE OF BT FINANCIAL STOCK AN INCREASE FROM THE PREVIOUSLY REPORTED 066 SHARE WHICH REFLECTS A BENEFIT FOR FIRSTSOUTH SHAREHOLDERS FROM THE 5 STOCK DIVIDEND BT FINANCIAL PAID IN JULY BT FINANCIAL SAID FIRSTSOUTH'S WHOLLY OWNED SUBSIDIARY FIRSTSOUTH SAVINGS ASSOCIATION WITH SEVEN BRANCH OFFICES WILL BE MERGED WITH ITS FAYETTE BANK & TRUST CO UNIT EFFECTIVE IMMEDIATELY WITH THE ACQUISITION BT FINANCIAL HAS ASSETS OF ABOUT 11 BILLION 9312140015 931214 BUSINESS BRIEFS FAHNESTOCK VINER HOLDINGS INC EXPANDED ITS BROKERAGE OPERATIONS IN THE NORTHEAST US AND FLORIDA WITH THE ACQUISITION OF REICH & CO NEW YORK TERMS OF THE ALLCASH TRANSACTION WEREN'T DISCLOSED COMAIR INC A UNIT OF COMAIR HOLDINGS INC WILL BEGIN OFFERING THREE NONSTOP FLIGHTS A DAY BETWEEN WICHITA KAN AND CINCINNATI EFFECTIVE FEB 1 COMAIR IS A REGIONAL AIRLINE THAT ALSO SERVES AS A DELTA CONNECTION CARRIER NATIONAL DATA CORP AGREED TO PROVIDE WALMART STORES INC BENTONVILLE ARK WITH REALTIME PROCESSING SERVICES FOR PHARMACY CLAIMS TERMS WEREN'T DISCLOSED GRANITE CONSTRUCTION INC HAS BEEN AWARDED A 275 MILLION CONTRACT BY THE US ARMY CORPS OF ENGINEERS TO MODIFY THE SAM RAYBURN DAM ON THE ANGELINA RIVER ABOUT 150 MILES NORTHEAST OF HOUSTON EVERGREEN MEDIA CORP AGREED TO PURCHASE K101FM A SAN FRANCISCO RADIO STATION FROM CLOSELY HELD BAY BROADCASTING CORP NEW YORK FOR 45 MILLION 9312140014 931214 BUSINESS BRIEF BROWNFORMAN CORP COMPANY OFFERS TO BUY BACK SHARES IN A DUTCH AUCTION BROWNFORMAN CORP SAID IT WILL OFFER TO BUY BACK AS MANY AS 42 MILLION SHARES OF ITS COMMON STOCK IN A DUTCH AUCTION AT A PRICE OF 83 TO 90 A SHARE THE LOUISVILLE KY CONSUMER PRODUCTS CONCERN SAID HOLDERS OF ITS CLASS A AND CLASS B COMMON SHARES WILL BE INVITED LATER THIS WEEK TO CHOOSE A PRICE IN THE 83TO90 RANGE AT WHICH THEY ARE WILLING TO SELL BROWNFORMAN SAID IT THEN WILL SELECT A SINGLE PURCHASE PRICE THAT WILL ALLOW IT TO BUY AS MANY AS 700000 SHARES OF CLASS A STOCK AND PRICE THAT WILL ALLOW IT TO BUY AS MANY AS 35 MILLION CLASS B SHARES BROWNFORMAN SAID ITS BOARD BELIEVES THE PURCHASE CONSTITUTES A PRUDENT USE OF FINANCIAL RESOURCES MORGAN STANLEY & CO WILL MANAGE THE OFFER 9312140013 931214 SAFETYKLEEN SEES 4THQUARTER LOSS BIG CHARGE CITED BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL SAFETYKLEEN CORP REFLECTING THE HAZARDOUSWASTE INDUSTRY'S DEEPENING SLUMP SAID IT PLANS A 136 MILLION FOURTHQUARTER CHARGE WILL REDUCE EMPLOYMENT BY 375 OR ABOUT 5 AND EXPECTS TO POST A LOSS FOR THE PERIOD THE ELGIN ILL COMPANY KNOWN BY ITS YELLOW VANS THAT DELIVER PARTS CLEANER TO GAS STATIONS NATIONALLY SAID IT ALSO WOULD ACCELERATE THE CHANGEOVER TO A NEW PARTSCLEANER SYSTEM THAT USES LESS SOLVENT AND GENERATES LESS HAZARDOUS WASTE SAFETYKLEEN IS THE LATEST COMPANY IN THE HAZARDOUSWASTE FIELD TO WRITE DOWN THE VALUE OF ASSETS MANY OF THEM ACCUMULATED VERY RECENTLY BECAUSE OF LOWERTHANEXPECTED WASTE VOLUMES AND INTENSE PRICE COMPETITION THE COMPANY DIDN'T ESTIMATE THE SIZE OF THE EXPECTED FOURTHQUARTER LOSS AND COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY IN OCTOBER THE COMPANY SAID THAT IT WAS STUDYING ITS BUSINESS AND EXPECTED A RESTRUCTURING A CHARGE AND JOB CUTS FOR 1992'S FOURTH QUARTER THE COMPANY REPORTED NET INCOME OF 126 MILLION OR 22 CENTS A SHARE ON REVENUE OF 2519 MILLION THE YEARAGO QUARTER INCLUDED A ONETIME CHARGE OF 14 MILLION THE COMPANY'S ANNOUNCEMENT CAME AFTER THE STOCK MARKET'S CLOSE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ITS STOCK PRICE CLOSED UNCHANGED AT 1675 THE CHARGE BEFORE TAXES WILL BE 229 MILLION 117 MILLION TO WRITE DOWN ASSETS 62 MILLION OF OTHER RESTRUCTURING COSTS AND 50 MILLION FOR A CHANGE IN ACCOUNTING FOR ENVIRONMENTAL CLEANUP COSTS LOOKING AHEAD LOWER COSTS WILL IMPROVE PROFIT BETWEEN 12 MILLION AND 15 MILLION IN 1994 THE COMPANY SAID AS THE COMPANY'S RESTRUCTURING PLAN SHOWS THE SMALLER VOLUME OF HAZARDOUS WASTE IN THE MARKET IS CAUSING WRENCHING CHANGES AMONG COMPANIES THAT HANDLE WASTE SAFETYKLEEN SAID IT WOULD BE CLOSING OR CONVERTING TO OTHER USES FACILITIES WITH GOVERNMENT PERMITS THAT WERE COSTLY AND DIFFICULT TO OBTAIN IT PLANS TO CLOSE A CLAYTON NJ SOLVENTRECYCLING PLANT AND CONVERT MANY OF ITS WASTESTORAGE FACILITIES INTO TRANSFER LOCATIONS THAT WON'T NEED PERMITS IN THE PARTSCLEANER BUSINESS SAFETYKLEEN SAID IT WILL SWITCH OVER A LARGE PORTION OF ITS CUSTOMERS IN THE NEXT FEW YEARS TO A MACHINE THAT FILTERS SOLVENT REQUIRING MUCH LESS FREQUENT CHANGES IN THE PRODUCT BECAUSE THE SOLVENT MUST BE HANDLED AS A HAZARDOUS WASTE CUSTOMERS HAVE BEEN CUTTING BACK ON ITS USE FOR REASONS OF LIABILITY AND COST 9312140012 931214 THRIFT INDUSTRY PROFIT SANK IN 3RD QUARTER BY 40 AGENCY SAYS WASHINGTON AP THRIFT INDUSTRY PROFITS DECLINED 40 IN THE THIRD QUARTER BECAUSE OF A 500 MILLION ONETIME WRITEOFF BY TWO NORTHEAST INSTITUTIONS JONATHAN FIECHTER ACTING DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION SAID DESPITE THE IMPACT OF THE GOODWILL WRITEOFF ON EARNINGS THE THRIFT INDUSTRY REMAINS HEALTHY MR FIECHTER DECLINED TO IDENTIFY THE INSTITUTIONS BUT SAID BOTH REMAIN IN GOOD SHAPE GOODWILL IS THE DIFFERENCE BETWEEN THE PRICE PAID FOR A FRANCHISE AND ITS BOOK VALUE BASICALLY IT IS LARGELY AN ACCOUNTING CHANGE AND NOT NECESSARILY A CHANGE IN THE ECONOMY OF THE INDUSTRY SAID JOSEPH BLALOCK AN ECONOMIST WITH THE SAVINGS & COMMUNITY BANKERS OF AMERICA PROFITS TOTALED 7625 MILLION IN THE THIRD QUARTER DOWN FROM 126 BILLION IN THE SECOND QUARTER AND 125 BILLION A YEAR EARLIER SAID MR FIECHTER IN THE FIRST NINE MONTHS INDUSTRY EARNINGS WERE 38 BILLION COMPARED WITH 41 BILLION THE YEAR EARLIER INDUSTRY ASSETS INCREASED TO 7854 BILLION FROM 7851 BILLION IN THE SECOND QUARTER THE INCREASE OCCURRED DESPITE A DROP IN THE NUMBER OF INSTITUTIONS TO 1719 ON SEPT 30 THE OTS DESCRIBED 119 THRIFTS AS TROUBLED INCLUDING 40 THAT MR FIECHTER SAID ARE LISTED AS PROBABLE CANDIDATES FOR FAILURE THAT WAS A DECLINE OF 34 INSTITUTIONS FROM THE PREVIOUS QUARTER ONLY ONE INSTITUTION WAS CRITICALLY UNDERCAPITALIZED AT THE END OF THE QUARTER AND IT HAS SINCE BEEN ACQUIRED THE OTS SAID 9312140011 931214 WHO'S NEWS WASHINGTON WATER POWER CO WASHINGTON WATER POWER CO SPOKANE WASH JAMES R HARVEY 56 YEARS OLD RESIGNED AS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR AT THIS UTILITY COMPANY NO SUCCESSORS HAVE BEEN NAMED 9312140010 931214 UST UNIT BOOSTS PRICES GREENWICH CONN US TOBACCO SALES & MARKETING CO A UNIT OF UST INC ANNOUNCED A PRICE INCREASE OF ABOUT 63 FOR ALL ITS MOIST SMOKELESS TOBACCO PRODUCTS EFFECTIVE IMMEDIATELY THE COMPANY'S BRANDS INCLUDE COPENHAGEN SKOAL SKOAL LONG CUT AND SKOAL BANDITS 9312140009 931214 PEPPERAND SALT WE GET THEM BY THE DOZEN EACH KID EACH SPOUSE EACH COUSIN OF BOASTFUL MISSIVES THIS I SHRILL THE UNDERSIGNED WILL READ THEM I ALWAYS THOUGHT DOGMATIC IT'S MORE LIKE ASTIGMATIC 9312140008 931214 CONTINUUM AUSTRALIAN UNIT AUSTIN TEXAS CONTINUUM CO SAID ITS AUSTRALIAN SUBSIDIARY HAS BEGUN PROCESSING TRANSACTIONS FOR THE VICTORIAN WORKCOVER AUTHORITY UNDER AN ARRANGEMENT WITH EXPECTED REVENUE OF BETWEEN 22 MILLION AND 28 MILLION OVER THE NEXT THREE YEARS CONTINUUM A COMPUTER SERVICES CONCERN SAID THE AUTHORITY WAS ESTABLISHED IN THE AUSTRALIAN STATE OF VICTORIA TO PROVIDE WORKERS WITH COMPENSATION INSURANCE AS PART OF THE TRANSACTION CONTINUUM SAID IT WILL TAKE OVER OPERATIONS IN THE AUTHORITY'S BUSINESS INFORMATION SYSTEMS DEPARTMENT AND THAT ABOUT 100 AUTHORITY EMPLOYEES WILL TRANSFER TO CONTINUUM AS PART OF THE AUTHORITY'S PLAN TO TAKE ON A PURELY REGULATORY ROLE 9312140007 931214 POLITICS & POLICY FOR CITICORP WHICH HAS LARGEST LOBBYING FORCE IN BANKING INDUSTRY VICTORIES ARE WON QUIETLY BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS HAS ENDED ITS YEAR WITHOUT PASSING ANY MAJOR BANKING LEGISLATION AND CITICORP HAD A FRONTROW SEAT FOR THE INACTION THE NATION'S LARGEST BANKING COMPANY EMPLOYS EIGHT REGISTERED LOBBYISTS IN ITS WASHINGTON OFFICE IN ADDITION SIX LAW FIRMS REPRESENT CITICORP'S INTERESTS ON CAPITOL HILL NO ONE SHOULD JUDGE THIS STRIKE FORCE INEFFECTIVE BY HOW LITTLE BANKING LEGISLATION GETS THROUGH THE LOBBYISTS SPEND MOST OF THEIR TIME BLOCKING AND BLUNTING CHANGES THAT COULD HURT CITICORP'S EXTENSIVE CREDITCARD OPERATIONS STUDENTLOAN BUSINESS OR EVERBROADENING FINANCIALSERVICE OFFERINGS DESPITE ITS SIZE AND THE NUMBER OF LOBBYISTS IT EMPLOYS CITICORP TRIES TO OPERATE QUIETLY CHARLES LONG CITICORP EXECUTIVE VICE PRESIDENT WHO SUPERVISES THE WASHINGTON OFFICE REFUSED TO BE INTERVIEWED FOR THIS ARTICLE AS DID MEMBERS OF HIS WASHINGTON STAFF THE MORE ACTIVE WE ARE THE MORE VULNERABLE WE ARE EXPLAINS JOHN MORRIS A CITICORP SPOKESMAN CITICORP STANDS OUT FROM OTHER BANKS IN ITS COMMITMENT TO PROTECTING ITS INTERESTS IN WASHINGTON BANKAMERICA CORP IS THE ONLY OTHER BANKING COMPANY THAT OPERATES A FULLTIME WASHINGTON OFFICE BUT IT HAS JUST ONE LOBBYIST HERE OTHER US BANKS RELY ON WASHINGTON LAW FIRMS OR REPRESENTATIVES WHO FLY IN AND OUT AS NEEDED STILL CITICORP HAS SUCCEEDED IN KEEPING ITS PROFILE LOW LOUIS GERBER A LOBBYIST FOR THE COMMUNICATIONS WORKERS OF AMERICA SAYS HE WASN'T EVEN AWARE THAT CITICORP WAS WORKING TO SOFTEN A UNIONBACKED BILL THAT WOULD LIMIT MANAGEMENT'S RIGHT TO MONITOR EMPLOYEE PHONE CALLS AND COMPUTER USE IT'S DIFFICULT TO IMAGINE WHY ON THE EVE OF THE 21ST CENTURY A MAJOR BUSINESS ORGANIZATION SHOULD FEEL THAT IT HAS TO ENGAGE IN STEALTH LOBBYING MR GERBER SAYS MR MORRIS SAYS HE CAN'T NAME ANY SPECTACULAR SUCCESSES THE OFFICE HAS SCORED I DON'T KNOW WHETHER WE LOOK AT IT FOR HOMERUN HITTING HE SAYS SWITCHING SPORTS HE ADDS I THINK IT'S A BLOCKING AND TACKLING OFFICE THE COMPANY'S STAFF AND THE LAW FIRMS IT HIRES TO HELP IT WITH SPECIFIC PROBLEMS MONITOR A BROAD RANGE OF BANKING CONSUMER TAX BUDGET AND TRADE ISSUES THAT COULD SHAPE CITICORP'S ABILITY TO DO BUSINESS AT HOME AND ABROAD THE BANK'S LEGISLATIVE INTERESTS INCLUDE PROTECTING LENDERS' RIGHTS IN BANKRUPTCY REFORM FENDING OFF LIMITS ON BANKS' MUTUALFUND SALES AND FIGHTING EFFORTS TO CURB BANKS' USE OF FINANCIAL DERIVATIVES MEANWHILE THE GIANT BANK FIGHTS FOR FREE TRADE IN DEBATES SUCH AS THE ONE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT AND ALSO PUSHES FOR OPENING ECONOMIC TIES WITH VIETNAM AGRESSIVE AND LEGALLY IMAGINATIVE CITICORP HAS TRADITIONALLY LED ITS COMPETITORS IN EXPANDING THE NUMBER OF SERVICES BANKS CAN OFFER ALTHOUGH ITS RECENT FINANCIAL PROBLEMS SEEM TO HAVE CURBED TEMPORARILY AT LEAST ITS LUST FOR NEW POWERS INSTEAD THE WASHINGTON OFFICE HAS CONCENTRATED ON PROTECTING EXISTING BUSINESSES FROM ATTACK BY OTHER INDUSTRIES FOR EXAMPLE IN 1991 WHEN CONGRESS WAS PASSING A MAJOR BANKING BILL CITICORP SUCCESSFULLY FENDED OFF AN INSURANCEINDUSTRY CAMPAIGN TO OVERTURN A COURT DECISION THAT ENABLED CITICORP TO ENTER THE INSURANCEUNDERWRITING BUSINESS IT ALSO DEFEATED AN EFFORT BY SMALL BANKS TO FORCE IT AND SEVERAL OTHER LARGE BANKS TO PAY DEPOSITINSURANCE PREMIUMS ON FOREIGN DEPOSITS AND LAST SUMMER CITICORP HELPED THWART PRESIDENT CLINTON'S EARLY EFFORT TO SHUT BANKS OUT OF THE STUDENTLOAN BUSINESS BANKERS TEND NOT TO LIKE POLITICS SAYS WILLIAM ISAAC THE FORMER CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP SOME OF THEM HAVE THE VIEW THAT THE WHOLE PROCESS IS UNWHOLESOME MR ISAAC WHO CURRENTLY HEADS THE SECURA GROUP A BANK CONSULTING FIRM ADDS THAT BANKERS ARE SO FRUSTRATED AND DISAPPOINTED BY THE OUTCOME OF THEIR BOTCHES IN WASHINGTON THAT THEY'VE GIVEN UP OVER THE PAST FEW YEARS THE BANKING INDUSTRY HAS STUMBLED BADLY IN ITS EFFORTS TO PUSH ITS TWO TOP LEGISLATIVE GOALS RELIEF FROM BURDENSOME REGULATION AND AN EXPANSION OF BANKS' ABILITY TO COMPETE MORE DIRECTLY WITH THE SECURITIES FIRMS INSURANCE COMPANIES AND MUTUAL FUNDS THAT ARE WINNING THE COMPETITION FOR CUSTOMERS ONE REASON IS THAT THE BANKING INDUSTRY IS BADLY SPLINTERED FIVE TRADE ASSOCIATIONS REPRESENT BANKS AND THRIFTS IN WASHINGTON AND YOU FIND THE BANKING INDUSTRY SPEAKING WITH FOUR OR FIVE DIFFERENT VOICES SAYS MARK LEGGETT NATIONSBANK CORP'S LOBBYIST SOMETIMES WE'RE OUR OWN WORST ENEMIES LARGE BANKS SUCH AS CITICORP ROUTINELY CLASH WITH SMALL LENDERS ON ISSUES SUCH AS DEPOSIT INSURANCE AND BRANCH BANKING FOREIGN BANKERS MEANWHILE PROVIDE A SOLID PRESENCE HERE BANK OF TOKYO BARCLAYS BANK PLC FUJI BANK AND INDUSTRIAL BANK OF JAPAN LTD HAVE FULLTIME OFFICES HERE MOST MAJOR SECURITIES FIRMS AND INSURANCE COMPANIES ALSO HAVE GOVERNMENTAFFAIRS OFFICES ON BROAD ISSUES THAT AFFECT THE BANKING OR FINANCIALSERVICES INDUSTRY AS A WHOLE CITICORP LOBBYISTS OFTEN WORK IN COALITIONS ORGANIZED BY THE AMERICAN BANKERS ASSOCIATION OR THE CONSUMER BANKERS ASSOCIATION CITICORP'S DUES TO THE ABA ARE 128750 A YEAR BUT MANY OF THE PROJECTS CITICORP'S WASHINGTON OFFICE UNDERTAKES ARE HIGHLY TECHNICAL A MAJOR GOAL THIS YEAR HAS BEEN TO WIN A TAXLAW CHANGE THAT WOULD MAKE IT EASIER FOR BANKS TO REMOVE LOANS FROM THEIR BOOKS BY POOLING THEM AND SELLING SECURITIES BACKED BY THE LOANS CITICORP IS A MAJOR ASSET LENDER AND WOULD BENEFIT FROM THE CHANGE WHICH WOULD ALSO MAKE MORE CREDIT AVAILABLE TO SMALL BUSINESSES AND OTHER BORROWERS SAYS DONALD SUSSWEIN A LAWYER WITH THACHER PROFFITT & WOOD THE FIRM HAS REGISTERED TO DEVELOP AND LOBBY FOR TAX LEGISLATION ON ASSETBACKED SECURITIES BUT MR SUSSWEIN SAYS HIS WORK HAS BEEN MOSTLY LEGAL WORK WHILE DAVID JORY A CITICORP LOBBYIST HAS HELPED LINE UP TWO MEMBERS OF THE HOUSE WAYS AND MEANS COMMITTEE TO INTRODUCE THE BILL THE SPONSORS ARE REP PETER HOAGLAND D NEB AND REP CLAY SHAW R FLA ALTHOUGH THE CONCEPT HAS SUPPORT THE BILL ITSELF IS TECHNICAL AND DIFFICULT TO UNDERSTAND CITICORP SPENT MUCH OF THIS YEAR RESPONDING TO CONCERNS RAISED BY THE TREASURY DEPARTMENT EVEN THOUGH THESE ISSUES ARE RESOLVED THE BILL ISN'T LIKELY TO MAKE IT THROUGH CONGRESS NEXT YEAR CITICORP BACKS UP ITS LOBBYING PROWESS WITH MONEY IN 1992 THE BANK'S POLITICAL ACTION COMMITTEE CONTRIBUTED 234572 TO 212 MEMBERS OF CONGRESS CITICORP'S CREDITCARD OPERATION EMPLOYS ABOUT 4000 PEOPLE IN SOUTH DAKOTA THAT PRESENCE AND CAMPAIGN CONTRIBUTIONS OF 8999 IN 1991 AND 1992 GIVE THE BANK READY ACCESS TO DEMOCRATIC SEN THOMAS DASCHLE D SD I'VE FOUND THEM TO BE EXTREMELY EFFECTIVE MR DASCHLE SAYS THEY'RE WELL PREPARED WHEN THEY COME TO THE OFFICE THEY'RE NOT OVERLY DEMANDING SEVERAL OTHER BANKS NATIONSBANK JP MORGAN & CO AND BARNETT BANKS INC CONTRIBUTE MORE BUT MONEY CAN'T BUY EVERYTHING THE BANKING INDUSTRY ISN'T LOVED BY CONGRESS SAYS RICHARD KOVACEVICH THE PRESIDENT OF NORWEST BANK IN MINNEAPOLIS PAUL NELSON A BANKING CONSULTANT WHO USED TO WORK ON CAPITOL HILL AGREES NOBODY LIKES BANKERS HE SAYS THEY'RE ALWAYS CRYING EVEN WHEN THEY'RE MAKING MONEY THEY'RE ALWAYS CRYING NOW FOR INSTANCE THE BANKING INDUSTRY IS EARNING RECORD PROFITS BUT BANKERS ARE COMPLAINING ABOUT THE COSTLY BURDEN OF HEAVY REGULATION IT'S HARD TO PUT A SHINE ON A SNEAKER MR NELSON SAYS 9312140005 931214 TECHNICAL ANALYSTS GET A CHILL AS WINTER APPROACHES BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKMARKET TECHNICAL ANALYSTS ARE TURNING BEARISH AS RECENTLY AS A FEW MONTHS AGO MOST TECHNICIANS CONFIDENTLY PREDICTED FURTHER GAINS FOR STOCKS BUT TODAY MANY OF THEM SEE THEIR ELECTROCARDIOGRAMS OF THE MARKET FLASHING WARNING SIGNALS AND EXPECT A DECLINE IN THE NEXT SIX MONTHS FOR EXAMPLE MONEY MANAGERS' CASH LEVELS A SIGN OF LATENT BUYING POWER ARE THE LOWEST ON RECORD AND THE ADVANCEDECLINE LINE A MEASURE OF THE BREADTH OF A STOCK MARKET'S ADVANCE APPEARS WEAK THE FIRST SIX MONTHS OF 1994 LOOK LESS THAN THRILLING SAYS STAN WEINSTEIN EDITOR OF THE PROFESSIONAL TAPE READER AND GLOBAL TREND ALERT NEWSLETTERS IN HOLLYWOOD FLA HE WOULDN'T BE SURPRISED IF BIG STOCKS FELL 10 OR SO HOT LITTLE STOCKS LIKE SYNOPSIS SNAPPLE AND STARBUCKS COULD TAKE IT ON THE CHIN BIG TIME AND FALL A LOT FURTHER HE SAYS MARKET RISK IS INCREASING SAYS ANDREW ADDISON EDITOR OF THE ADDISON REPORT IN FRANKLIN MASS HE SAYS STOCKS MIGHT EDGE UP A BIT FURTHER IN THE NEXT MONTH OR TWO THEN DROP 10 ON THE NEW YORK STOCK EXCHANGE AND MORE ON THE NASDAQ STOCK MARKET TECHNICAL ANALYSIS IS ONE OF TWO BROAD SCHOOLS OF STOCKMARKET RESEARCH THE DOMINANT SCHOOL IS FUNDAMENTAL ANALYSIS WHICH TRIES TO FORECAST STOCK PRICES BY LOOKING AT BUSINESS CONDITIONS THE ECONOMIC CLIMATE AND THE LIKE A FUNDAMENTAL ANALYST WANTS TO KNOW HOW MANY CARS FORD IS SELLING WHAT PRICES PHILIP MORRIS CAN CHARGE FOR ITS CIGARETTES AND WHETHER A ROBUST ECONOMY WILL BOOST IBM EARNINGS TECHNICAL ANALYSIS IGNORES SUCH QUESTIONS IT TAKES ITS CLUES SOLELY FROM WITHIN THE MARKET ITSELF A TECHNICAL ANALYST WANTS TO KNOW IF FORD'S STOCK PRICE IS RISING WHAT THE TRADING VOLUME IN PHILIP MORRIS IS AND WHAT PATTERNS ARE VISIBLE ON IBM'S STOCK CHART ACADEMICS OFTEN SCORN TECHNICAL ANALYSIS AS VOODOO BUT MANY MONEY MANAGERS AND INDIVIDUAL INVESTORS PUT FAITH IN IT AND ALMOST EVERY BROKERAGE HOUSE BOASTS AN INHOUSE TECHNICAL ANALYST HERE'S A LOOK AT SOME TECHNICAL INDICATORS THAT ANALYSTS ARE FOCUSING ON NOW ADVANCEDECLINE LINE THE AD LINE AS TECHNICIANS CALL IT IS A CUMULATIVE TOTAL OF THE NUMBER OF ADVANCING STOCKS MINUS THE NUMBER OF DECLINING ONES THE STARTING POINT IS ARBITRARY SUPPOSE THAT ON MONDAY 1100 STOCKS RISE ON THE NEW YORK STOCK EXCHANGE WHILE 900 STOCKS FALL THE AD LINE THUS WOULD BEGIN AT 200 BUT TUESDAY LOSERS OUTNUMBER GAINERS BY A MARGIN OF 1075 TO 925 RESULTING IN A CUMULATIVE TOTAL OF 50 AFTER TUESDAY'S NET 150 LOSERS THIS IS A MEASURE OF WHAT MARKET PROFESSIONALS CALL BREADTH IT INDICATES WHETHER AN ADVANCE IS BROADBASED OR LIMITED TO A FEW LEADING STOCKS SUCH AS THE BLUECHIP CYCLICALS THAT DOMINATE THE DOW JONES INDUSTRIAL AVERAGE LATELY BREADTH HASN'T LOOKED TOO GOOD THE DAILY AD LINE PEAKED IN MIDOCTOBER CASH LEVELS INDATA A MARKET INFORMATION FIRM TRACKS MORE THAN 1300 INSTITUTIONAL PORTFOLIOS AT PENSION FUNDS MUTUAL FUNDS BANKS INSURANCE COMPANIES AND THE LIKE BETWEEN THEM THESE PORTFOLIOS INCLUDE MORE THAN 370 BILLION IN ASSETS CASH LEVELS OFTEN THOUGHT TO REPRESENT BUYING POWER IN RESERVE ARE DOWN TO 37 THAT'S THE LOWEST SINCE INDATA STARTED KEEPING TRACK IN 1979 VOLUME OCTOBER AND NOVEMBER WERE THE SECOND AND THIRDBUSIEST TRADING MONTHS EVER ON THE NEW YORK STOCK EXCHANGE EACH OF THIS YEAR'S FIRST ELEVEN MONTHS RANK AMONG THE TOP 13 ON RECORD WITH MORE THAN FIVE BILLION SHARES TRADED EVERY MONTH BEFORE THIS YEAR THE ONLY MONTHS WHEN VOLUME EXCEEDED FIVE BILLION SHARES WERE OCTOBER 1987 WHEN THE MARKET CRASHED AND JANUARY 1992 AFTER THE FEDERAL RESERVE BOARD SIGNIFICANTLY EASED INTEREST RATES TECHNICIANS ARE DIVIDED OVER WHAT THE HIGH VOLUME MEANS ALFRED GOLDMAN OF AG EDWARDS IN ST LOUIS SAYS THE HEAVY TRADING IS POSITIVE SHOWING A HIGH LEVEL OF DESIRE TO BE IN THIS MARKET RICHARD ARMS OF ARMS COS IN ALBUQUERQUE NM SAYS IT'S A NEGATIVE BECAUSE A HUGE AMOUNT OF VOLUME WAS UNABLE TO MOVE THE MARKET VERY FAR HIGHS AND LOWS IN A LONGRUNNING BULL MARKET THAT STILL HAS STEAM LEFT IN IT TECHNICIANS EXPECT TO SEE SIZABLE NUMBERS OF STOCKS HITTING NEW 52WEEK HIGHS AND FEW STOCKS HITTING NEW LOWS BUT IN NOVEMBER NEW LOWS SOMETIMES OUTNUMBERED NEW HIGHS JOSEPH GRANVILLE A KANSAS CITY MO MARKET GURU WHO HAD A HUGE FOLLOWING TWO DECADES AGO AND HAS BEEN MAKING SOMETHING OF A COMEBACK LATELY USES A TWIST ON THE HIGHLOW INDICATOR HE MEASURES THE NUMBER OF STOCKS WITHIN ONE POINT OF A NEW HIGH OR LOW MR GRANVILLE SEES IT AS VERY DANGEROUS THAT 405 STOCKS ARE WITHIN A POINT OF NEW LOWS YOU HAVE 405 ARROWS ON THE WAY THEY'RE IN THE AIR HE SAYS OF COURSE THERE ARE DOZENS OF TECHNICAL INDICATORS AND SOME REMAIN STAUNCHLY BULLISH I'VE NEVER SEEN A MAJOR DECLINE WHEN THERE HAVE BEEN MASSIVE BREAKOUTS IN DOW STOCKS LIKE ALLIEDSIGNAL MCDONALD'S UNION CARBIDE BOEING GENERAL ELECTRIC AND GENERAL MOTORS SAYS RALPH ACAMPORA TECHNICAL ANALYST AT PRUDENTIAL SECURITIES ALSO SOME OF THE TRANSPORTATION STOCKS LOOK FABULOUS ESPECIALLY THE RAILS VEERING FOR A MOMENT INTO FUNDAMENTAL ANALYSIS MR ACAMPORA SAYS THE RECENT DROP IN OIL PRICES WILL BE A HUGE SHOT IN THE ARM FOR BONDS AND STOCKS THE BULL MARKET HAS SHOWN IT HAS UPSIDE MOMENTUM SAYS MR GOLDMAN OF AG EDWARDS NONE OF US MERE MORTALS CAN TELL WHEN A TREND IN PLACE IS GOING TO CHANGE SO I'M ASSUMING THAT THIS VERY DIFFICULT BUT UPWARD BIASED BULL MARKET IS GOING TO LAST FOREVER UNTIL IT CHANGES IT GOES UP TWO STEPS DOWN A STEP AND A QUARTER THEN TAKES A SIESTA I THINK WE'RE GOING TO CONTINUE TO CRAWL UPWARD THAT'S NOT MUCH COMFORT TO MR WEINSTEIN THE FLORIDA NEWSLETTER WRITER HE CONTINUES TO LIKE STOCKS IN A FEW INDUSTRIES SUCH AS GOLD HEALTH CARE AND POLLUTION CONTROL HE ALSO LIKES SOME FOREIGN STOCKS BUT HE SAYS THAT IN THE PAST FEW MONTHS THE US MARKET HAS ROLLED THROUGH A TEXTBOOK SEQUENCE OF OMINOUS EVENTS MARKETS USUALLY TOP OUT IN THE FOLLOWING ORDER HE SAYS FIRST THE UTILITIES MAKE A HIGH THAT'S HAPPENED IN SEPTEMBER SECOND THE FINANCIALS TOP OUT THAT HAPPENED IN OCTOBER THIRD THE AGGRESSIVE GROWTH STOCKS TOP OUT THE NEWBRIDGE NETWORKS AND QUALCOMMS OF THE WORLD FOURTH THE AD LINE TOPS OUT FIFTH THERE IS A NARROWING TO HIGHERQUALITY STOCKS THE DOW STOCKS LEAD AND NO OTHER AVERAGES CONFIRM SIXTH YOU SEE A PATHETIC NUMBER OF NEW HIGHS LATELY HE SAYS THE NUMBER OF NEW HIGHS IS USUALLY UNDER 100 EVEN ON STRONG DAYS INVESTORS CAN EASILY BE FOOLED BY FOCUSING TOO CLOSELY ON THE DOW INDUSTRIALS MR WEINSTEIN SAYS BECAUSE IN A DECLINE THE DOW IS OFTEN THE LAST INDEX TO FADE BY THE TIME THE DOW GIVES ITS BLESSING A LOT OF THESE THINGS ARE DOWN 30 9312140004 931214 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED DEC 10 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER JOLIET ILL WILL REDEEM ON JAN 1 1994 ITS RESIDENTIAL MORTGAGE REVENUE BONDS SERIES 1979 DUE MAY 1 19941999 AND MAY 1 2009 CONTINENTAL BANK CHICAGO AND FIRST BANK MILWAUKEE ARE TRUSTEES LAKE COUNTY ILL ELDERLY HOUSING CORPORATION WILL REDEEM ON JAN 1 1994 80000 PRINCIPAL AMOUNT OF ITS 775 HOUSING DEVELOPMENT REVENUE BONDS SERIES 1978 DUE JAN1 1998 CONTINENTAL BANK CHICAGO IS TRUSTEE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY WILL REDEEM ON JAN 15 1994 100000 PRINCIPAL AMOUNT OF ITS 8 7/8 ECONOMIC DEVELOPMENT SENIOR REVENUE BONDS SERIES A DUE JAN 15 2020 MIDLANTIC NATIONAL BANK IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON JAN 10 1994 ITS 8875 DEBENTURES SERIES SM2001A DUE JAN 10 2001 FEDERAL NATIONAL MORTGAGE ASSOCIATION WASHINGTON DC IS REDEMPTION AGENT NORTHERN STATES POWER CO WILL REDEEM ON JAN 3 1994 ITS 8 3/8 FIRST MORTGAGE BONDS DUE JAN 1 2004 HARRIS TRUST AND SAVINGS BANK CHICAGO IS TRUSTEE 9312140003 931214 UNFORESEEN COSTS OF FAA'S PROJECT PUT AT 12 BILLION BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL AVIATION ADMINISTRATION NOW EXPECTS MORE THAN 12 BILLION IN UNFORESEEN COSTS FOR OVERHAULING THE AIRTRAFFIC CONTROL SYSTEM A PROJECT THAT ALREADY WAS WAY OVER BUDGET AND BEHIND SCHEDULE GOVERNMENT OFFICIALS SAID THE ANNOUNCEMENT HAD NO CONNECTION WITH AN AGREEMENT YESTERDAY BY LORAL CORP TO BUY INTERNATIONAL BUSINESS MACHINES CORP'S FEDERAL SYSTEMS CO UNIT WHICH HAS MOST OF THE 59 BILLION IN CONTRACTS TO BUILD NEW WORKSTATIONS FOR CONTROLLERS AN IBM OFFICIAL SAID BOTH COMPANIES WERE AWARE OF THE LATEST OVERRUNS BUT THE OVERRUNS COULD CREATE HEADACHES FOR LORAL BECAUSE IT'S LIKELY TO SPUR NEW CALLS FOR REFORM FAA ADMINISTRATOR DAVID HINSON SAID HE HAD ORDERED INTERNAL AND EXTERNAL REVIEWS OF THE MODERNIZATION PROGRAM THAT FEDERAL SYSTEMS IS LEADING HE ALSO SAID HE WOULD DIRECT A REASSESSMENT OF THE RELATIONSHIP BETWEEN THE FAA AND THE CONTRACTORS THAT OVERSEE THE PROGRAM OTHERS INCLUDING A PRESIDENTIAL COMMISSION ON THE AIRLINE INDUSTRY HAVE QUESTIONED WHETHER THE FAA CAN COMPLETE THE OVERHAUL AT ALL BECAUSE OF COMPLEX PROCUREMENT RULES THE COMMISSION CALLED FOR PARTS OF THE AIRTRAFFIC CONTROL SYSTEM TO BE TURNED OVER TO A SEMIPRIVATE CORPORATION PRESIDENT CLINTON IS EXPECTED TO GIVE PARTIAL SUPPORT FOR THE IDEA IN A FEW DAYS CONGRESS IN THE PAST HAS SPURNED THE IDEA BUT MEMBERS MAY FEEL COMPELLED TO CONSIDER IT IN LIGHT OF THE LATEST OVERRUNS THE IBM PROJECT CALLED THE ADVANCED AUTOMATION SYSTEM IS THE BIGGEST SINGLE PIECE OF THE AIR TRAFFIC CONTROL MODERNIZATION PLAN THE TOTAL PRICE TAG NOW TOPS 17 BILLION THE AUTOMATION PROGRAM INCLUDES INSTALLING COMPUTER WORKSTATIONS IN 20 AIRROUTE TRAFFIC CONTROL CENTERS NATIONWIDE BEGINNING IN SEATTLE IN APRIL 1995 AS WELL AS MODERNIZING 150 AIRPORT TOWERS LAST DECEMBER THE FAA THREATENED TO WITHHOLD PAYMENTS IF IBM COULDN'T CURE SOFTWARE GLITCHES THAT WERE THREATENING THE PROGRAM IBM AGREED TO TIGHTEN ITS MANAGEMENT OF THE CONTRACT AND TO SUBMIT ITS SOFTWARE TO AN AUDIT BY TRW INC THE CONTRACT WAS THE SUBJECT OF CONGRESSIONAL HEARINGS LAST MARCH AND OF A MEETING LAST SUMMER BETWEEN TRANSPORTATION SECRETARY FEDERICO PENA AND IBM CHAIRMAN LOUIS GERSTNER IBM AND FAA OFFICIALS INSISTED THE PROJECT WAS BACK ON TRACK AND AS RECENTLY AS LATE SEPTEMBER MR HINSON GAVE CONGRESS PROGRESS REPORTS INDICATING THE AGENCY WAS AHEAD OF SCHEDULE THE FAA SAYS IT'S STILL ON SCHEDULE WE HAVE BEEN MISLED CONSISTENTLY ON THIS MODERNIZATION PROGRAM ASSERTED REP WILLIAM CLINGER OF PENNSYLVANIA THE RANKING REPUBLICAN ON THE HOUSE AVIATION SUBCOMMITTEE I DON'T THINK YOU CAN JETTISON THIS PROGRAM HE SAID BUT HE ADDED THAT CONGRESS MAY CONSIDER SCALING IT BACK JOHN BURT EXECUTIVE DIRECTOR OF SYSTEM DEVELOPMENT FOR THE FAA SAID THE AGENCY BECAME AWARE ONLY IN THE PAST FEW MONTHS THAT THE PROJECT WAS AGAIN OVER COST HE SAID THE OVERRUNS 750 MILLION OF WHICH PERTAIN TO IBM'S PART OF THE CONTRACT ARE LARGELY THE OFFSHOOT OF THE AGREEMENT THE FAA NEGOTIATED WITH IBM EARLIER THIS YEAR FOR INSTANCE THE FAA AND IBM AGREED THAT THE CONTROLLERS SHOULD BE ABLE TO USE THEIR WORKSTATIONS EVEN WHEN DATA ARE BEING UPDATED BUT THE PLAN FOR ACHIEVING THAT CONTINUOUS OPERATION WOULD COST MORE THAN THE FAA EXPECTED IN ADDITION THE FAA DECIDED ON SOFTWARE IMPROVEMENTS AFTER TESTING A PROTOTYPE OF THE SYSTEM ON CONTROLLERS OVER THE LAST YEAR CONTROLLERS HAVE CRITICIZED THE AGENCY FOR NOT SEEKING THEIR INPUT EARLIER THE PROBLEMS ARE AS MUCH MANAGEMENT AS THEY ARE PROCUREMENT A SPOKESMAN FOR MR PENA SAID 9312140002 931214 POGO'S GULF OF THAILAND WELL HOUSTON POGO PRODUCING CO SAID IT COMPLETED A DEVELOPMENT WELL IN THE GULF OF THAILAND THE OIL AND GAS COMPANY WHICH OWNS A 317 WORKING INTEREST IN THE TANTAWAN NO 2 WELL SAID THE WELL TESTED AT 703 MILLION CUBIC FEET OF NATURAL GAS A DAY AND AT 1720 BARRELS OF OIL A DAY FROM SIX INTERVALS AT DEPTHS RANGING FROM 6224 FEET TO 9922 FEET POGO SAID IT WILL DRILL ANOTHER TANTAWAN WELL IN THE US POGO RECENTLY COMPLETED FIVE WELLS IN THE GULF OF MEXICO IT SAID IT EXPECTED THOSE WELLS WOULD BOOST ITS 1994 FIRSTQUARTER NATURALGAS PRODUCTION AT LEAST 37 TO 135 MILLION CUBIC FEET A DAY COMPARED WITH 983 MILLION A DAY THE YEAR EARLIER 9312140001 931214 LEISURE & ARTS BOOKSHELF THE CELESTIAL DANCE BY JIM HOLT NATURE AND NATURE'S LAWS LAY HID IN NIGHT GOD SAID LET NEWTON BE' AND ALL WAS LIGHT SO GOES THE INSCRIPTION THAT ALEXANDER POPE COMPOSED FOR THE TOMB OF SIR ISAAC NEWTON AS WITH MOST EPITAPHS IT IS SOMETHING OF AN EXAGGERATION WHILE NEWTON'S SUBLIMELY SIMPLE LAW OF GRAVITY DID ILLUMINE EVERYTHING FROM THE ORBITS OF THE PLANETS TO THE FALL OF AN APPLE LITTLE POOLS OF DARKNESS REMAINED ONE SUCH SURROUNDED THE WEIRDLY ERRATIC MOTION OF THE MOON WHICH DESPITE A YEAR OF SUSTAINED CALCULATION NEWTON WAS UNABLE TO MASTER THE GREAT GENIUS LATER RECALLED THAT HIS HEAD NEVER ACHED BUT WITH STUDIES OF THE MOON INDEED ONE GETS HEADACHEY JUST CONTEMPLATING ALL THE DIFFERENT SPECIES OF MONTH THAT LUNAR MOVEMENTS DEFINE SIDEREAL 273 DAYS SYNODIC 295 DAYS ANOMALISTIC 276 DAYS AND IN HONOR OF THE MOONEATING DRAGON THAT CAUSES ECLIPSES DRACONITIC 272 DAYS THESE COMPLICATIONS STEM FROM THE FACT THAT THE MOON'S COURSE IS GRAVITATIONALLY TOYED WITH BY THE SUN AS WELL AS EARTH LUNAR MOTION IS THUS AN EXAMPLE OF THE FIENDISHLY DIFFICULT THREEBODY PROBLEM AS IF THAT'S NOT BAD ENOUGH CONSIDER THE SOLAR SYSTEM AS A WHOLE IN ADDITION TO THE SUN AND EARTH IT COMPRISES EIGHT PLANETS AND THEIR MOONS NOT TO MENTION A HOST OF LESSER OBJECTS ASTEROIDS COMETS AND WHATNOT ALL PERTURBING ONE ANOTHER'S PROGRESS IN EVERY POSSIBLE WAY AS IVARS PETERSON EXPLAINS IN HIS MASTERLY NEWTON'S CLOCK CHAOS IN THE SOLAR SYSTEM WH FREEMAN 317 PAGES 2295 THE UNPREDICTABLE NATURE OF THEIR JIG TO THE MUSIC OF GRAVITY RAISES A PERPLEXING ISSUE IS THE SOLAR SYSTEM STABLE IN THE LONG TERM OR IS IT ULTIMATELY DOOMED TO CATASTROPHIC BREAKUP NEWTON HIMSELF HAD HIS DOUBTS WORRIED THAT CERTAIN IRREGULARITIES IN THE ORBITS OF SATURN AND JUPITER MIGHT EVENTUALLY PROVE DISRUPTIVE OF THE ENTIRE SYSTEM HE SUPPOSED THAT DIVINE INTERVENTION WAS REQUIRED AT STRATEGIC MOMENTS TO RESET THE CELESTIAL CLOCKWORK A CENTURY LATER THE GREAT FRENCH MATHEMATICIAN PIERRE SIMON DE LAPLACE CLEVERLY SHOWED THAT IN FACT THESE IRREGULARITIES WERE SELFCORRECTING WHEN ASKED BY NAPOLEON ABOUT THE ROLE OF GOD IN HIS THEORY LAPLACE REPLIED SIR I HAD NO NEED OF THAT HYPOTHESIS BUT THIS WAS BY NO MEANS THE END OF THE MATTER AS MR PETERSON RECOUNTS IN HIS EMINENTLY READABLE HISTORY ALTHOUGH CELESTIAL MECHANICS SOON BECAME SOPHISTICATED ENOUGH TO PREDICT THE EXISTENCE OF UNKNOWN PLANETS SUCH AS NEPTUNE IN 1846 PROOF OF THE SOLAR SYSTEM'S STABILITY CONTINUED TO ELUDE THE GRASP OF ITS PRACTITIONERS FINALLY AROUND THE TURN OF THE CENTURY A SORT OF NEGATIVE BREAKTHROUGH OCCURRED WHEN HENRI POINCARE ANOTHER FRENCH MATHEMATICAL SAVANT BRILLIANTLY DEMONSTRATED THAT THE THREEBODY PROBLEM DEFIED COMPLETE MATHEMATICAL SOLUTION IN DOING SO HE ACHIEVED THE FIRST GLIMPSE OF A PHENOMENON WITH WHICH WE HAVE RECENTLY BECOME QUITE FAMILIAR DYNAMICAL CHAOS CHAOS REFERS TO THE BIZARRE AND SEEMINGLY LAWLESS BEHAVIOR OF SYSTEMS THAT ARE ACTUALLY GOVERNED BY STRICT MATHEMATICAL RULES IN OUR SOLAR SYSTEM CHAOS IS MANIFESTED BY PLANETS THAT WOBBLE ABRUPTLY IN THEIR ORBITS BY MOONS THAT TUMBLE AT RANDOM AND BY ASTEROIDS THAT CAREEN UNPREDICTABLY CLOSE TO OUR OWN FAIR PLANET A TERRESTRIAL IMPACT BY AN ASTEROID ABOUT WHICH THE ECONOMIST MAGAZINE RECENTLY EDITORIALIZED UNDER THE OMINOUS HEADLINE THE THREAT FROM SPACE WOULD MAKE NUCLEAR WAR LOOK LIKE JOLLY BOATING WEATHER ASK ANY DINOSAUR NOR CAN WE RULE OUT THE POSSIBILITY THAT IN TIME TO COME EARTH MIGHT STRAY FROM ITS USUAL PATH AND COLLIDE WITH MARS OR GET EJECTED FROM THE SOLAR SYSTEM ALTOGETHER AND END UP WANDERING THROUGH THE INTERSTELLAR VOID BUT AS MR PETERSON LUCIDLY SPELLS OUT CHAOS DOES NOT NECESSARILY MEAN CATASTROPHE LEST YOU BEGIN WINDING UP YOUR AFFAIRS PREMATURELY BE ASSURED THAT A VARIETY OF INGENIOUS COMPUTER SIMULATIONS SHOW NEWTON'S CREAKY CLOCKWORK HOLDING TOGETHER TOLERABLY WELL FOR THE NEXT FEW HUNDRED MILLION YEARS THE THEME OF CHAOS IS ALSO TAKEN UP ALBEIT IN A MORE PHILOSOPHICAL VEIN BY IVAR EKELAND IN HIS ELEGANT AND ENLIGHTENING LITTLE VOLUME THE BROKEN DICE AND OTHER MATHEMATICAL TALES OF CHANCE UNIVERSITY OF CHICAGO PRESS 183 PAGES 1995 MR EKELAND PRESIDENT OF THE UNIVERSITY OF PARISDAUPHINE IS A MATHEMATICIAN WITH A HAPPY PENCHANT FOR LITERARY AND HISTORICAL LORE IF HE IS GOING TO EXPLORE SAY THE VEXING PROBLEM OF GETTING A COMPUTER TO CHURN OUT A STRING OF TRULY RANDOM NUMBERS A CRUCIAL STEP IN THE DEVELOPMENT OF THE HBOMB IN 1952 YOU CAN BET HE WILL APPROACH IT THROUGH A MEDIEVAL MONK'S ANALOGOUS EFFORT TO REFINE THE CASTING OF LOTS THE BETTER TO REVEAL GOD'S WILL TO A LEGENDARY NORWEGIAN KING THE NUB OF THE BROKEN DICE CONCERNS HUMANKIND'S STRUGGLE TO FIND MEANINGFUL REGULARITIES IN A WORLD DOMINATED BY PURE CONTINGENCY OUR FOREBEARS DEALT WITH CHANCE OCCURRENCES BY INVOKING FATE MAGIC DESTINY MODERN MAN HAS RECOURSE TO PROBABILITY AND STATISTICS AND TO THE NEW SCIENCE OF CHAOS WHICH DISCOVERS PATTERNS OF STABILITY IN THE FORM OF STRANGE ATTRACTORS BUT IF TODAY WE USE MATHEMATICS TO PRICE STOCK OPTIONS AND LESS SUCCESSFULLY TO ESTIMATE THE ODDS OF SPACESHUTTLE EXPLOSIONS AND NUCLEAR MELTDOWNS THE CHAOTIC PROCESSES OF HISTORY CONTINUE TO RESIST DETERMINISTIC SCHEMES ACCORDING TO MR EKELAND HAD CLEOPATRA'S NOSE BEEN SHORTER OBSERVED PASCAL THE WHOLE ASPECT OF THE WORLD WOULD HAVE BEEN ALTERED OR TO PUT IT SOMEWHAT DIFFERENTLY NOT EVERY STRANGE ATTRACTOR IS MATHEMATICAL 9312140029 931124 BOARD OF CONTRIBUTORS FROM PEROT TO BUCHANAN BY IRVING KRISTOL ROSS PEROT IS A TRANSIENT PHENOMENON IN AMERICAN POLITICS HIS MOVEMENT IF SUCH IT CAN BE CALLED IS CERTAINLY INFUSED WITH ENERGY ARISING FROM THE FRUSTRATIONS OF A LARGE SEGMENT OF THE BODY POLITIC BUT HE IS OBVIOUSLY INCAPABLE OF MOBILIZING THIS ENERGY INTO ANY KIND OF COHERENT PROGRAM HE IS AN ARROGANT WILLFUL AND QUITE MUDDLEHEADED POLITICAL AMATEUR TOO MUCH THE AMATEUR TO GIVE A VIABLE SHAPE TO THE POPULIST POLITICAL FORCES THAT RAISED HIM TO HIS CURRENT PROMINENCE OVER THE NEXT 18 MONTHS OR SO HE WILL EITHER FADE AWAY OR SELFDESTRUCT PAT BUCHANAN IN CONTRAST IS A MAN OF CONSIDERABLE INTELLIGENCE AND IS CAPABLE OF EFFECTIVE DEMAGOGUERY HE APPEALS TO EXACTLY THE SAME FRUSTRATIONS AND SENTIMENTS AS MR PEROT AND HE WILL BE PLEASED TO INHERIT THE PEROT CONSTITUENCY THAT MR PEROT HAS SPENT SO MUCH MONEY TO CALL INTO BEING TO THESE PEOPLE MR BUCHANAN CAN OFFER A SEDUCTIVE SHARPLY DEFINED AGENDA AND HE CAN ARTICULATE THIS AGENDA WITH FORCE AND PASSION MR BUCHANAN EVEN HAS A POLITICAL VISION A REAL VISION NOT MERELY A RHETORICAL ONE INDEED IT IS NO EXAGGERATION TO SAY THAT HE MAY BE THE ONLY VISIONARY IN AMERICAN POLITICS TODAY MOREOVER IT IS A QUITE DISTINCTIVE VISION IT IS NEITHER LIBERAL NOR CONSERVATIVE IT IS POWERFULLY REACTIONARY CONVENTIONAL WISDOM HAS IT THAT THIS MEANS HE CANNOT BE TAKEN TOO SERIOUSLY PERHAPS SO REACTIONARY POLITICS IS MORE OFTEN THAN NOT HOPELESSLY UTOPIAN POLITICS WHAT IS PERFECTLY CONCEIVABLE HOWEVER IS THAT A BUCHANANLED MOVEMENT TOO WEAK TO GAIN AN ELECTORAL MAJORITY MAY YET BE STRONG ENOUGH TO WRECK THE GOP AND CHANGE THE NATION'S POLITICAL LANDSCAPE THE BUCHANAN AGENDA IS SHORT SIMPLEMINDED AND COGENT ITS MAIN ELEMENTS ARE AS FOLLOWS ECONOMIC PROTECTIONISM IE SAVE AMERICAN JOBS AT WHATEVER COST TO THE WORLD ECONOMY OR EVEN TO THE US ECONOMY AS THIS LATTER IS MEASURED BY THE USUAL MACROECONOMIC STATISTICS MR BUCHANAN'S ECONOMICS IS NEITHER GROWTH ECONOMICS NOR TRADITIONAL MARKET ECONOMICS AND HE MAKES NO BONES OF HIS CONTEMPT FOR ECONOMISTS AS A CLASS HIS ECONOMICS WHICH FAVORS KEEPING THINGS AS THEY ARE OR BETTER YET RESTORING THINGS AS THEY USED TO BE IS NOT SO VERY DISTANT FROM THE AFLCIO'S ECONOMICS AMERICA FIRST IN FOREIGN POLICY WHICH MEANS DEFINING THE AMERICAN NATIONAL INTEREST IN THE NARROWEST NATIONALIST TERMS THIS IN TURN MEANS DISENGAGING FROM ALL FOREIGNDOMINATED INTERNATIONAL ORGANIZATIONS AND FORGETTING THE WILSONIAN DREAM AS WELL AS ALL SUBSEQUENT DREAMS OF A NEW WORLD ORDER GETTING RUTHLESS NOT JUST TOUGHER IN OUR APPROACH TO CRIME AND WELFARE FIFTY YEARS AGO THE STREETS OF OUR CITIES WERE RELATIVELY FREE OF CRIME AND NOT MANY 16YEAROLD GIRLS WERE HAVING ILLEGITIMATE BABIES WHY NOT A RESTORATION OF THE OLD REGARDLESS OF HUMAN COST AND NOT MERELY A REFORM OF THE NEW RADICALLY RESTRICTING IMMIGRATION ON THE TRADITIONAL NATIVIST GROUNDS THAT THE US IS ALREADY SO MULTICULTURALIST AS TO THREATEN OUR CONVENTIONAL IDEA OF WHAT IT MEANS TO BE AN AMERICAN THE NEARUNIVERSAL REACTION OF THE MEDIA AND OUR POLITICAL ESTABLISHMENTS IS HE'S GOING TOO FAR ON THE OTHER HAND SPEAK TO THE TAXI DRIVER ON YOUR NEXT TRIP AND YOU WILL DISCOVER THAT REGARDLESS OF RACE AGE OR SEX HE OR SHE THINKS THERE'S A LOT TO BE SAID FOR GOING TOO FAR FOR AN AWFUL LOT OF AMERICANS MR BUCHANAN'S VISION OF RESTORING THE OLD REPUBLIC AS HE CALLS IT COMES AS A BREATH OF FRESH AIR AFTER ALL THE MOSTLY EMPTY AND INEFFECTUAL CHATTER WE HAVE HEARD IN RECENT YEARS ABOUT CHANGE AND REFORM HE MAY NEVER GATHER ANYTHING LIKE A MAJORITY AROUND THIS BELLIGERENT AGENDA BUT HE MIGHT GATHER ENOUGH TO MATTER HOW COULD HE DO IT THE REIGNING ASSUMPTION SEEMS TO BE THAT HE WILL REPLAY 1992 ENTERING THE REPUBLICAN PRIMARIES MAKING A LOT OF NOISE ATTRACTING A FAIR AMOUNT OF CONDESCENDING ATTENTION AND THEN GETTING HIMSELF WIPED OUT BUT PAT BUCHANAN IS FAR TOO SMART TO REPLAY A LOSING GAME WHAT IS FAR MORE LIKELY IS THAT HE WILL BE THE CANDIDATE OF A THIRD PARTY ONE THAT WILL RUN CANDIDATES IN AS MANY STATES AS POSSIBLE AND AT AS MANY POLITICAL LEVELS AS POSSIBLE THOUGH MR BUCHANAN HAS BEEN A REPUBLICAN ALL HIS LIFE HE HAS NEVER REALLY FELT COMFORTABLE IN THE PARTY NOT EVEN DURING THE REAGAN YEARS WHEN HE HELD A NOT UNIMPORTANT POSITION IN THE WHITE HOUSE VISIONARIES DO NOT FIT NEATLY INTO ANY OF THE BOXES IN ORGANIZATIONAL CHARTS HE HAS IN THE PAST WRITTEN ABOUT THE POSSIBLE NEED FOR A TRUEBLUE SINGLEMINDED CONSERVATIVE PARTY ONE THAT WOULD INSIST ON ITS AGENDA WHILE FORSAKING THE NORMAL COMPROMISES OF AMERICAN ELECTORAL POLITICS THE PEROT PHENOMENON MUST SURELY HAVE CONVINCED HIM THAT THE TIME IS NOW IF HE CAN BEGIN BY INHERITING A SUBSTANTIAL FRACTION OF THE PEROT VOTE HE WILL BE IN A FAR STRONGER POSITION THAN HE WAS IN 1992 THE CONVENTIONAL WISDOM IS ALMOST CERTAINLY CORRECT IN ASSUMING THAT RUNNING AT THE HEAD OF A THIRD PARTY HE CANNOT GET NEARLY ENOUGH ELECTORAL VOTES OR POPULAR VOTES TO BE ELECTED PRESIDENT BUT HE MAY NOT EVEN BE OVERLY CONCERNED ABOUT THAT PROSPECT FOR HIM NOT WINNING IS NOT THE SAME AS LOSING IF HIS VOTE IS IN THE 15 TO 20 RANGE AND IF A NUMBER OF HIS PARTY'S CANDIDATES END UP GETTING ELECTED TO SOMETHING SOMEWHERE HE WILL NOT HAVE LOST AND IF A MERE HANDFUL OF HIS CANDIDATES GET ELECTED TO CONGRESS WHICH IS NOT AT ALL INCONCEIVABLE HE WILL HAVE WON A NEW PARTY WILL HAVE BEEN BORN CHALLENGING THE REPUBLICAN PARTY FOR ITS PORTION OF THE POLITICAL SPECTRUM THIS IS NOT A CHALLENGE THE REPUBLICAN PARTY IS IN A GOOD POSITION TO MEET SINCE 1980 THE PARTY HAS MOVED NOTICEABLY TO THE RIGHT JUST AS THE DEMOCRATIC PARTY HAS MOVED NOTICEABLY TO THE LEFT LIBERAL REPUBLICANS ARE AN EXTINCT SPECIES MODERATE REPUBLICANS SOMETIMES MODERATELY CONSERVATIVE SOMETIMES JUST MODERATE ARE NOW A MAJORITY AND CONSTITUTE THE NEW ESTABLISHMENT WITH THE UNAMBIGUOUS CONSERVATIVES THE VERY CONSERVATIVE NOW AN INFLUENTIAL RIGHT WING WHOSE STRENGTH AND NUMBERS SEEM TO HAVE PEAKED THE PARTY HAS UNQUESTIONABLY BEEN RESPONSIVE TO POPULAR OPINION BUT THE QUESTION IS WHETHER IT HAS BEEN RESPONSIVE ENOUGH OR RESPONSIVE IN A CONVINCING WAY FOR THERE IS PLENTY OF EVIDENCE IF ONE LOOKS BENEATH THE MEDIA FROTH FOR IT THAT POPULAR OPINION IS SLOWLY BUT STEADILY LOSING PATIENCE WITH MODERATE REPUBLICANISM YES MODERATE REPUBLICANISM CAN STILL WIN ELECTIONS AGAINST LIBERALS AS HAS RECENTLY HAPPENED BUT AS DISILLUSIONMENT WITH MODERATE INEFFECTUAL GOVERNANCE SETS IN A RIGHTWARD DRIFT COULD ACQUIRE A MORE EXTREME EDGE A SIMILAR PROCESS SEEMS TO BE HAPPENING TO MODERATE CONSERVATISM ELSEWHERE IN THE WESTERN DEMOCRACIES IN BRITAIN PRIME MINISTER JOHN MAJOR HAS THE LOWEST POPULARITY RATING IN POLITICAL MEMORY IN GERMANY CHANCELLOR HELMUT KOHL IS FIGHTING FOR HIS POLITICAL LIFE IN NEITHER CASE IS IT THE TRADITIONAL PARTIES ON THE LEFT THAT ARE BENEFITING FROM THE COLLAPSE OF MODERATE CONSERVATISM RATHER IT IS WHATEVER ALTERNATIVE TO THE TWO TRADITIONAL PARTIES VOTERS CAN FIND IN GERMANY THIS IS NEW PARTIES ON THE RIGHT IN BRITAIN IT IS TEMPORARILY ONE CAN ASSUME THE HITHERTO MORIBUND LIBERAL PARTY BUT THE MOST SPECTACULAR CASE WAS THE RECENT ELECTION IN CANADA IN WHICH THE LONGDOMINANT TORY PARTY AFTER YEARS OF EXERCISING POWER IN A MODERATECONSERVATIVE WAY WAS ABSOLUTELY SMASHED SO THAT IT IS NOW A SMALL MINORITY PARTY WITH PRACTICALLY NO LEGISLATIVE PRESENCE A MAJOR FACTOR IN THIS ELECTORAL DISASTER WAS THE SUDDEN APPEARANCE OF A RIGHTWING PARTY IN THE WESTERN PROVINCES PAT BUCHANAN HAS RECENTLY WRITTEN SEVERAL COLUMNS ON THE IMPORTANCE OF THE CANADIAN ELECTION WHICH HE SEES AS FLASHING SOME SIGNIFICANT POLITICAL INDICATORS DOES OUR OWN REPUBLICAN ESTABLISHMENT UNDERSTAND WHAT IS GOING ON THAT IS UNLIKELY THIS ESTABLISHMENT SEES ITS MAIN PURPOSE IN LIFE TO BE THE WINNING OF ELECTIONS CAMPAIGNING NOT GOVERNANCE IS ITS FOCUS IT THEREFORE DISTRUSTS THE VISION THING AS A WILD DISTRACTION FROM POLITICS AS IT UNDERSTANDS THE TERM RECENT EXPERIENCE TO THE CONTRARY NOTWITHSTANDING IT CANNOT IMAGINE THAT A WINNING CANDIDATE MIGHT UNDERMINE THE LONGERTERM PROSPECTS OF THE PARTY THE ABSENCE OF SUCH POLITICAL IMAGINATION IS A CHARACTERISTIC WEAKNESS OF CONSERVATISM IN GENERAL AN AWARENESS OF THIS DEFICIENCY IS SURELY A PREREQUISITE FOR THE SURVIVAL OF THE REPUBLICAN PARTY MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST SEE RELATED LETTERS LETTERS TO THE EDITOR CONSERVATISM AND POPULISM DON'T MIX WSJ DEC 14 1993 9311240134 YY93 MM12 9312130169 931213 WHO'S NEWS ALLEGHENY POWER SYSTEM INC ALLEGHENY POWER SYSTEM INC NEW YORK NANCY CAMPBELL 54 YEARS OLD TREASURER OF THIS UTILITY HOLDING COMPANY WAS ELECTED A VICE PRESIDENT 9312130168 931213 EMC PLANS TO ISSUE 200 MILLION OF NOTES CONVERTIBLE INTO STOCK HOPKINTON MASS EMC CORP SAID IT WILL SELL 200 MILLION OF 4 1/4 CONVERTIBLE SUBORDINATED NOTES DUE JAN 1 2001 THE COMPANY SAID THE NOTES CAN BE CONVERTED INTO EMC COMMON STOCK AT ANY TIME PRIOR TO MATURITY AT AN INITIAL CONVERSION PRICE OF 1984 A SHARE THE PRICE IS ADJUSTED TO ACCOUNT FOR A 2FOR1 STOCK SPLIT IN THE FORM OF A 100 DIVIDEND EFFECTIVE LAST FRIDAY THE NOTES MAY BE REDEEMED BY THE COMPANY AS EARLY AS JAN 1 1997 AT 1024286 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE PREMIUM WOULD DECLINE PROPORTIONALLY AFTER THAT DATE EMC SAID PROCEEDS FROM THE SALE WILL BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES INCLUDING THE FUNDING OF NEW PRODUCT INTRODUCTIONS AND POSSIBLE ACQUISITIONS AN EMC SPOKESWOMAN SAID THE OFFER WAS AN EXPANSION OF A PLAN ANNOUNCED NOV 19 TO SELL 150 MILLION IN NOTES THE DEMAND WAS SO HIGH SHE SAID EMC HAS APPLIED TO LIST THE NOTES ON THE NEW YORK STOCK EXCHANGE SMITH BARNEY SHEARSON INC IS LEAD MANAGER OF THE OFFERING 9312130167 931213 PEPPERAND SALT BUT WHOM ALAS I HAVE NEVER MET OF THEIR CHILDREN'S CHILDREN AS THE ANNUAL CHRISTMAS LETTER 9312130166 931213 WHO'S NEWS MITCHELL ENERGY PICKS WILLIAM STEVENS TO BE ITS PRESIDENT OPERATIONS CHIEF BY ROBERT JOHNSON AND ALLANNA SULLIVAN STAFF REPORTERS OF THE WALL STREET JOURNAL MITCHELL ENERGY & DEVELOPMENT CORP ADDRESSING A LONGSTANDING SUCCESSION QUESTION NAMED WILLIAM D STEVENS PRESIDENT AND ALSO CHIEF OPERATING OFFICER A NEW POSITION AS PRESIDENT MR STEVENS SUCCEEDS GEORGE P MITCHELL THE COMPANY'S 74YEAROLD FOUNDER AND 60 OWNER WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR STEVENS 59 RETIRED ALMOST TWO YEARS AGO FROM EXXON CORP AS PRESIDENT OF THE OIL GIANT'S US OPERATIONS A POST HE HAD HELD SINCE 1988 HE WAS A CAREER EXECUTIVE AT THE COMPANY AND BY EXXON TRADITION HE WOULD HAVE CONTINUED AS ONE OF EXXON'S TOP OFFICERS UNTIL HE WAS 65 BUT HIS CAREER BECAME ENSNARED IN THE DISASTROUS MARCH 1989 EXXON VALDEZ OIL SPILL ANALYSTS SAY HE WAS ULTIMATELY IN CHARGE OF THE OPERATION OVERSEEING THE SHIPMENT OF EXXON'S ALASKAN CRUDE FRANK IAROSSI WHO RAN EXXON'S SHIPPING UNIT DURING THAT PERIOD REPORTED TO MR STEVENS BOTH EXECUTIVES FLEW TO THE SITE OF THE SPILL IN ALASKA WITHIN 48 HOURS AND TOOK MUCH OF THE HEAT OVER THE INCIDENT ANALYSTS SAY THEIR CAREERS WERE TAINTED BY THE SPILL INDEED NEITHER EXECUTIVE REMAINED WITH THE COMPANY LONG AFTER THE SPILL THE LARGEST EVER IN THE US MR STEVENS WHO COULDN'T BE REACHED TO COMMENT IS DESCRIBED AS HAVING BEEN A POPULAR FIGURE AMONG RANKANDFILE WORKERS AT EXXON HIS MANAGEMENT PHILOSOPHY DIDN'T ALWAYS MESH WITH EXXON'S MOST SENIOR EXECUTIVES HE WAS ESPECIALLY OPPOSED TO POLICIES CALLING FOR COST AND STAFF REDUCTIONS FOLLOWING THE VALDEZ INCIDENT AN EXXON SPOKESMAN SAID MR STEVENS CHOSE TO LEAVE THE COMPANY IN FEBRUARY 1992 HIS CAREER THERE SPANNED 35 YEARS THE MOVE BY MITCHELL ENERGY ONE OF THE NATION'S LARGEST PETROLEUM PRODUCERS MAY SIGNAL AN EXPANDED STRATEGY OF EXPLORATION AND PRODUCTION SOME ANALYSTS SAID FURTHER THE CHANGE EMPHASIZES THAT MITCHELL ENERGY'S FUTURE FOCUS WILL BE ON PETROLEUM RATHER THAN THE REALESTATE PROJECTS SPEARHEADED BY MR MITCHELL I THINK ONE OF THE THINGS WALL STREET HASN'T LIKED ABOUT MITCHELL ENERGY IS THAT THE PERSON WHO HAS BEEN RUNNING THE OPERATION IS SO INTERESTED IN REALESTATE DEVELOPMENT SAID THOMAS LEWIS AN ANALYST AT DUFF & PHELPS/MCM INVESTMENT RESEARCH CO GEORGE IS STILL GOING TO BE INVOLVED IN THE BUSINESS BUT NOW WE HAVE AN OILANDGAS MAN RUNNING DAYTODAY OPERATIONS MR STEVENS HAS BEEN A MITCHELL DIRECTOR SINCE APRIL 1992 SHORTLY AFTER HIS RETIREMENT FROM EXXON IN ADDITION TO THE TWO NEW POSTS HE WAS ALSO NAMED PRESIDENT OF MITCHELL ENERGY'S EXPLORATION & PRODUCTION DIVISION SUCCEEDING DON COVEY WHO DIED OF A HEART AILMENT ON NOV 12 THE NEW POSITIONS ARE EFFECTIVE JAN 4 ALTHOUGH THE REALESTATE DEVELOPMENTS BOTH MITCHELL ENERGY'S AND MR MITCHELL'S PRIVATE VENTURES ABSORB MUCH OF MR MITCHELL'S TIME THEY ACCOUNTED FOR LESS THAN 20 OF THE COMPANY'S EARNINGS LAST YEAR IN THE YEAR ENDED JAN 31 MITCHELL HAD NET INCOME OF 185 MILLION OR 39 CENTS A SHARE ON REVENUE OF 9028 MILLION MR MITCHELL HAS A WELLKNOWN AVERSION TO OVERSEAS ENERGY EXPLORATION BUT SOME INDUSTRY OBSERVERS THINK MR STEVENS WILL TAKE THE INITIATIVE ON INTERNATIONAL PROJECTS WHICH ARE INCREASINGLY FAVORED BY LARGE AND SMALL DRILLING COMPANIES DUFF & PHELPS'S MR LEWIS SAYS THAT MR STEVENS HAS A KNOWLEDGE BASE THAT'S MORE GLOBAL IN SCOPE HE'S A BIG OIL VETERAN COMING INTO AN INDEPENDENT USORIENTED COMPANY WHICH WILL GIVE SOME WIDER POTENTIAL FOR EXPLORATION AND PRODUCTION MITCHELL IS BASED IN THE WOODLANDS TEXAS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LAST FRIDAY MITCHELL'S CLASS A SHARES CLOSED AT 1825 DOWN 25 CENTS THE MORE ACTIVELY TRADED CLASS B SHARES CLOSED UNCHANGED AT 1650 9312130165 931213 USAIR PLANS TO CUT ITS OPERATING COSTS ON SHORTER HAULS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ARLINGTON VA USAIR GROUP INC AFTER NEARLY A YEAR'S STUDY SAID IT'S SET TO IMPLEMENT A PLAN TO REDUCE OPERATING COSTS IN ITS SHORTHAUL MARKETS WITHOUT OFFERING MANY SPECIFICS THE AIRLINE HOLDING COMPANY SAID THAT ON FEB 16 IT WILL BEGIN CHANGING ITS SCHEDULING ON CERTAIN ROUTES OF LESS THAN 500 MILES THROUGH MOREEFFICIENT USE OF PERSONNEL AIRCRAFT AND GROUND FACILITIES IN THOSE MARKETS USAIR SAID IT EXPECTS TO ACHIEVE COSTS SAVINGS PARTLY BY CUTTING NEARLY IN HALF THE 45 MINUTES ITS PLANES NOW SPEND ON THE GROUND A USAIR SPOKESWOMAN WOULDN'T QUANTIFY THE SAVINGS EXPECTED BUT INDUSTRY ANALYSTS SAID THE PLAN SO FAR FAILS TO ADDRESS THE COMPANY'S RISING LABOR COSTS PREVIOUSLY NEGOTIATED UNION WAGE CUTS BEGAN EXPIRING THIS YEAR MEANING WAGES FOR MANY EMPLOYEES HAVE SNAPPED BACK TO THEIR PREVIOUS LEVELS THUS WHILE THE SHORTHAUL PROGRAM IS A POSITIVE STEP SAID KEVIN MURPHY AN AIRLINE ANALYST FOR MORGAN STANLEY & CO USAIR STILL NEEDS FURTHER BREAKTHROUGHS WITH ITS UNIONS IN TERMS OF WORKRULE OR WAGE CONCESSIONS AS A HIGHCOST CARRIER USAIR HAS BEEN PARTICULARLY VULNERABLE TO SMALLER LOWFARE AIRLINES RIVALS SUCH AS SOUTHWEST AIRLINES AND CONTINENTAL AIRLINES' CALITE HAVE BEEN INVADING SEVERAL OF USAIR'S MARKETS FORCING THE COMPANY TO MATCH REDUCED FARES IN OCTOBER USAIR SAID IT PLANNED TO ELIMINATE 2500 JOBS OR 54 OF ITS WORK FORCE BY THE MIDDLE OF 1994 AND IT SUBSEQUENTLY TOOK A 672 MILLION CHARGE TO COVER THE COST OF THE JOB CUTS ON FRIDAY THE COMPANY SAID IT WILL INTRODUCE SOME ADDED IMPROVEMENTS IN ITS DOMESTIC AND TRANSATLANTIC LONGHAUL FLIGHTS IN SEVERAL STAGES NEXT YEAR SEPARATELY USAIR UNVEILED A LIBERTY FARES PROGRAM CUTTING ONEWAY BUSINESS FARES BETWEEN PHILADELPHIA AND PITTSBURGH TO AS LOW AS 149 DURING OFFPEAK TIMES FROM 289 THE COMPANY WHICH IS OFFERING OTHER FARE DISCOUNTS BETWEEN THE CITIES SAID IT ALSO WILL BOOST THE NUMBER OF ROUND TRIPS BETWEEN PHILADELPHIA AND PITTSBURGH TO 15 A DAY FROM 11 STARTING JAN 5 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY USAIR SHARES ROSE 125 CENTS TO 13375 9312130164 931213 MARKETING & MEDIA GENERAL MILLS TO CUT PRICES OF 3 CEREALS IN BID TO BREAK RELIANCE ON DISCOUNTING BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS GENERAL MILLS INC SEEKING TO CURB ITS DEPENDENCE ON DISCOUNTS TO SELL BREAKFAST CEREAL TOOK THE EXTRAORDINARY STEP OF CUTTING PRICES ON THE BIGGEST BOXES OF THREE MAJOR BRANDS THE COMPANY SAID THAT BEGINNING NEXT MONTH IT WOULD LOWER PRICES ON SOME PACKAGES OF APPLE CINNAMON CHEERIOS TRIX AND TOTAL WHEAT FLAKES BY BETWEEN 11 AND 16 TOGETHER THOSE BRANDS ALL OF WHICH HAVE RECENTLY BEEN LOSING MARKET SHARE REPRESENT ABOUT 6 OF THE COMPANY'S 24 BILLION DOMESTIC CEREAL SALES THE PRICE REDUCTIONS WILL COME ON BOXES WHOSE NORMAL CHEAPER PEROUNCE COSTS HAVE BEEN UNDERMINED BY AGGRESSIVE DISCOUNTING OF SMALLERSIZED BOXES AS IT CUTS PRICES GENERAL MILLS ALSO WILL SPEND LESS PROMOTING THE CEREALS WHILE THAT RISKS FURTHER SALES LOSSES THE ACTION REFLECTS SENIOR MANAGEMENT'S GROWING DOUBTS ABOUT THE ECONOMICS OF COUPONING AND OTHER TRADITIONAL DISCOUNTING METHODS THAT DRIVE THE US CEREAL INDUSTRY STEPHEN W SANGER PRESIDENT SAID THE COMPANY FOUND ITSELF CAUGHT UP IN A SITUATION WHERE IT WAS FORCED TO OFFER COSTLY DISCOUNTS TO ATTRACT CONSUMERS YOU EITHER HAVE TO SPEND MORE TO PROMOTE THEM OR THEIR VOLUME GOES DOWN HE SAID WE COULD GIVE THE CONSUMER A BETTER DEAL DAY IN AND DAY OUT WITH A LOWER RETAIL PRICE AND A LOWER LEVEL OF PRICE PROMOTION ON THE THREE BRANDS AFFECTED TYPICALLY CEREAL COMPANIES RAISE PRICES AT LEAST ANNUALLY THEN ISSUE MILLIONS OF CENTSOFF COUPONS THAT ESSENTIALLY NULLIFY THE INCREASES BUT THIS PAST AUGUST GENERAL MILLS SOUGHT TO BREAK THAT SPIRAL BY NOT GOING ALONG WITH MARKETLEADER KELLOGG CO AND PHILIP MORRIS COS' POST CEREALS BUSINESS WHEN THEY RAISED PRICES TO INCREASE AND THEN DEAL IT BACK WITH COUPONING AND OTHER PROMOTIONS WE FELT WOULD LEAVE US WORSE OFF MR SANGER SAID AT THE TIME SINCE THEN GENERAL MILLS WHICH WITH NEARLY 30 OF THE US CEREAL MARKET IS A STRONG NO 2 BEHIND KELLOGG HAS TAKEN TWO OTHER STEPS THAT INDICATE A BREAK WITH PAST PROCEDURES IT INTRODUCED A CHILDREN'S CEREAL CALLED SPRINKLE SPANGLES THAT WAS PRICED LOWER THAN OTHER RECENT PRESWEETENED PRODUCTS AND IT ADDED 25 MORE INGREDIENTS SUCH AS NUTS AND RAISINS TO SEVERAL OF ITS PRICIER CEREALS SUCH AS BASIC 4 BOTH MOVES ARE SEEN AS EFFORTS TO SLOW DOWN THE PRICINGPROMOTION RACE ANALYSTS CONSIDER GENERAL MILLS SOMEWHAT MORE VULNERABLE TO CONSUMER STICKER SHOCK SINCE ITS CEREALS TEND TO BE MORE EXPENSIVE THAN KELLOGG'S SOME INTERPRETED THE ANNOUNCEMENT ABOUT PLANNED PRICE ROLLBACKS AS INDICATIVE OF AN ENVIRONMENT INCREASINGLY HOSTILE TO PRICE INCREASES ALL THESE COMPANIES ARE TRYING TO PROSPER IN A NOPRICING ENVIRONMENT SAID JOHN MCMILLIN OF PRUDENTIAL SECURITIES CALLING IT A BRAVE NEW WORLD FOR THE INDUSTRY LIFE WAS A LOT EASIER WHEN YOU COULD RAISE PRICES AND SPEND BACK WITH MARKETING EXPENSES TO JUMPSTART YOUR BUSINESS JOANNA SCHARF OF SG WARBURG & CO TERMED GENERAL MILLS'S MOVE A REAL STEP FORWARD THE ISSUE IS NOT SIMPLY PROMOTIONAL SPENDING IN CEREALS BUT THE WAY IT'S RISEN SO DRAMATICALLY IN THE ENTIRE FOOD INDUSTRY EACH OF THE THREE CEREALS INVOLVED HAS BEEN LOSING MARKET SHARE INFORMATION RESOURCES INC'S MARKETSCAN SERVICE FOUND THAT FOR THE 12 WEEKS ENDED NOV 7 TRIX'S DOLLAR SHARE WAS 13 DOWN SIXTENTHS OF A SHARE POINT FROM A YEAR EARLIER TOTAL WHEAT FLAKES WAS DOWN FOURTENTHS OF A SHARE POINT TO A 17 SHARE AND APPLE CINNAMON CHEERIOS WAS DOWN THREETENTHS OF A POINT TO AN 8 SHARE A KELLOGG CO SPOKESMAN DECLINED TO COMMENT ON GENERAL MILLS'S SELECTIVE PRICE CUTS BUT CALLED HIS COMPANY THE VALUE LEADER IN THE CATEGORY KELLOGG HASN'T CUT PRICES IN RECENT YEARS HE SAID 9312130163 931213 ALC CLASS A REDEMPTION IS SET BINGHAM FARMS MICH ALC COMMUNICATIONS CORP SAID IT WILL REDEEM ITS CLASS A PREFERRED STOCK DEC 31 FOR 20 A SHARE PLUS ACCRUED DIVIDENDS THE RECORD DATE IS DEC 13 ALC IS A PROVIDER OF LONGDISTANCE TELEPHONE SERVICE 9312130162 931213 FOURTH FINANCIAL ACQUISITION WICHITA KAN FOURTH FINANCIAL CORP SAID IT COMPLETED THE ACQUISITION OF PONCA BANCSHARES INC AND ITS UNIT SECURITY BANK & TRUST CO OF PONCA CITY OKLA THE BANK HAS ASSETS OF 117 MILLION AND DEPOSITS OF 106 MILLION TERMS WEREN'T DISCLOSED 9312130161 931213 BUSINESS BRIEF FMC CORP SLATES 125 MILLION CHARGE TIED TO JOB CUTS ASSET WRITEDOWNS CHICAGO FMC CORP SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF ABOUT 125 MILLION TO RESTRUCTURE CERTAIN SEGMENTS INCLUDING ELIMINATION OF ABOUT 1200 JOBS AND TO WRITE DOWN ASSETS THE MAKER OF MACHINERY AND CHEMICALS SAID THE CHARGE REPRESENTS ABOUT 340 A SHARE AND WILL GIVE IT A LOSS FOR THE QUARTER SEPARATELY FMC GOLD CO IN WHICH FMC CORP HOLDS A 79 STAKE DISCLOSED THAT IT WILL TAKE A FOURTHQUARTER CHARGE OF ABOUT 60 MILLION OR 82 CENTS A SHARE PRIMARILY TO WRITE DOWN ASSETS AT AN IDAHO GOLD PROPERTY ACQUIRED IN 1990 FMC CORP SAID A RECENTLY COMPLETED STUDY OF SEVERAL OF THE BUSINESSES IN ITS MACHINERY AND EQUIPMENT SEGMENT HIGHLIGHTED THE NEED TO FOCUS ON EXISTING STRONG MARKET POSITIONS EXIT SEVERAL PRODUCT LINES AND STREAMLINE OPERATIONS THROUGH ELIMINATING MANAGEMENT LAYERS AND CONSOLIDATING PLANT LOCATIONS CHARGES LINKED TO THAT PLAN TOTAL ABOUT 40 MILLION ON AN AFTERTAX BASIS THE PRODUCT LINES THE COMPANY HOPES TO SHED ARE PRIMARILY IN THE FOODMACHINERY BUSINESS A SPOKESWOMAN SAID BUT THE LIST HASN'T YET BEEN FINALIZED THE COMPANY'S INDUSTRIAL CHEMICAL BUSINESS WHICH CONTINUES TO BE UNFAVORABLY AFFECTED BY THE WEAK WORLDWIDE ECONOMIES AND OVERCAPACITY IN MAJOR MARKETS WILL TAKE ABOUT 20 MILLION IN AFTERTAX RESTRUCTURING CHARGES THE CHARGES WILL COVER EFFORTS TO REDUCE COSTS AT CERTAIN OPERATIONS BUT THE CAMPAIGN DOESN'T INVOLVE DROPPING ANY MAJOR PRODUCT LINES THE SPOKESWOMAN SAID ALREADY THIS YEAR FMC HAS IMPLEMENTED ABOUT 1300 JOB CUTS PLANS FOR MOST OF THOSE WERE ANNOUNCED IN 1992 AND RELATE TO THE DIMINISHED ORDERS IN ITS DEFENSE SEGMENT THE CUTBACKS ANNOUNCED FRIDAY MEAN THAT THE COMPANY WILL THIS YEAR HAVE EFFECTED OR ANNOUNCED PLANS FOR STAFF REDUCTIONS TOTALING 2500 POSITIONS OR ABOUT 12 OF ITS OVERALL WORK FORCE FMC GOLD'S 60 MILLION CHARGE INCLUDES A 50 MILLION WRITEDOWN FOR ITS BEARTRACK DEVELOPMENT PROPERTY AS WELL AS COSTS ASSOCIATED WITH CLOSING THE ROYAL MOUNTAIN KING AND PARADISE PEAK MINES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY FMC CORP SHARES CLOSED UNCHANGED AT 45125 FMC GOLD SHARES LIKEWISE WERE UNCHANGED ON THE BIG BOARD AT 525 9312130160 931213 WHO'S NEWS MAYTAG CORP MAYTAG CORP NEWTON IOWA JOHN P CUNNINGHAM JR WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS APPLIANCE MAKER EFFECTIVE JAN 1 MR CUNNINGHAM 56 YEARS OLD HAS 30 YEARS EXPERIENCE AT INTERNATIONAL BUSINESS MACHINES CORP MOST RECENTLY HE WAS VICE PRESIDENT AND ASSISTANT GENERAL MANAGER FOR IBM'S MAINFRAME DIVISION IN HIS NEW POST HE SUCCEEDS JERRY A SCHILLER WHO RETIRED OCT 31 9312130158 931213 CORESTATES SEEKS LISTING PHILADELPHIA CORESTATES FINANCIAL CORP WHICH TRADES ON THE NASDAQ STOCK MARKET SAID IT PLANS TO MAKE AN APPLICATION TO HAVE ITS COMMON SHARES LISTED ON THE NEW YORK STOCK EXCHANGE THE BANK HOLDING COMPANY WHICH OPERATES MAINLY IN THE MIDDLE ATLANTIC STATES HAS ABOUT 228 BILLION IN ASSETS 9312130157 931213 WHO'S NEWS BIG O TIRES INC BIG O TIRES INC ENGLEWOOD COLO FRANK L CARNEY WAS NAMED A DIRECTOR OF THIS TIRE AND AUTOMOTIVESERVICES RETAILER INCREASING THE BOARD'S SIZE TO NINE MEMBERS MR CARNEY 55 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OF CLOSELY HELD WESTERN SIZZLIN' HE WAS NOMINATED BY BALBOA INVESTMENT GROUP LP A BIG O SHAREHOLDER 9312130156 931213 DIVESTITURE TO BOOST UGI NET VALLEY FORGE PA UGI CORP SAID SALE OF ITS REMAINING BUSINESSES IN OILFIELD SERVICES WILL BOOST FISCAL FIRSTQUARTER NET INCOME BY ABOUT 79 MILLION OR 25 CENTS A SHARE THE HOLDING COMPANY WHICH HAS INTERESTS IN ENERGYUTILITY AND PROPANE BUSINESSES SAID THE RESULTS WILL BE REFLECTED IN ITS FISCAL FIRST QUARTER ENDING DEC 31 THE COMPANY RECENTLY CHANGED TO A FISCAL YEAR FROM A CALENDAR YEAR 9312130155 931213 TECHNOLOGY & ENVIRONMENT US MOVES TO EASE CURBS ON HABITATS OF SPOTTED OWL BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERIOR DEPARTMENT MOVED TO EASE RESTRICTIONS ON SOME PRIVATE TIMBERLANDS INHABITED BY THE NORTHERN SPOTTED OWL BUT IT ALSO PLEDGED TO ENFORCE LOGGING RESTRICTIONS ON OTHER PRIVATE ACREAGE MORE AGGRESSIVELY THE PURPOSE OF THE NEW SCHEME IS TO COORDINATE THE USE OF PRIVATE LANDS WITH THE FOREST SUMMIT PLAN ANNOUNCED IN JULY BY THE CLINTON ADMINISTRATION THAT PROPOSAL WHICH CONCERNED MOSTLY PUBLIC LANDS WAS GEARED TOWARD REDUCING BY 80 THE TIMBER HARVESTING ON FEDERAL LANDS IN THE NORTHWEST WHILE AT THE SAME TIME MINIMIZING FEDERAL REGULATION OF PRIVATE FOREST LAND THE NEW PROPOSAL WHICH IS ROUGHLY THE EQUIVALENT OF A PROPOSED REGULATION WOULD AFFECT INDIVIDUAL LANDOWNERS AS WELL AS LARGE COMPANIES SUCH AS WEYERHAEUSER CO OF TACOMA WASH AND BOISE CASCADE CORP OF BOISE IDAHO THE PLAN CLARIFIES AND IN SOME AREAS RELIEVES THE RESTRICTIONS ON CUTTING OF PRIVATE TIMBERLANDS IMPOSED BY THE ENDANGERED SPECIES ACT ON ACCOUNT OF THE SPOTTED OWL SAID GEORGE FRAMPTON ASSISTANT SECRETARY FOR FISH AND WILDLIFE AND PARKS HOWEVER CONSIDERING THAT THE INTERIOR DEPARTMENT PREVIOUSLY HAD WHAT MR FRAMPTON TERMED A POLICY OF OFFICIAL NONENFORCEMENT TOWARD MANY OF THE SPOTTEDOWL RESTRICTIONS FOR PRIVATE LAND IT'S UNCLEAR WHETHER THE CHANGE WOULD MEAN A NET INCREASE OR DECREASE IN LOGGING MR FRAMPTON SAID THAT HE DIDN'T KNOW HOW MANY ACRES WOULD BE FREED UP FOR LOGGING UNDER THE PLAN BUT THAT IT WOULD BE A SIGNIFICANT AMOUNT THE PLAN ISN'T INTENDED TO RECREATE HABITATS FOR THE NORTHERN SPOTTED OWL ON PRIVATE LANDS MOST SUCH HABITATS HAVE DISAPPEARED THROUGH DEVELOPMENT OR LOGGING RATHER THE PLAN AIMS AT USING PRIVATE LANDS TO CONNECT FEDERAL LANDS WHERE THE OWL WOULD BE PROTECTED THE PLAN WOULD PROVIDE 10 PROTECTED AREAS OR ROUGHLY HALF THE PREVIOUS NUMBER MARK REY VICE PRESIDENT FOR FOREST RESOURCES AT THE AMERICAN FOREST AND PAPER ASSOCIATION CALLED THE DEPARTMENT'S PLAN A FIRST STEP IN EVALUATING WHETHER THEY CAN MAKE GOOD ON THE PROMISE TO REDUCE REGULATION OF PRIVATE TIMBERLANDS THE PROPOSAL HE SAID APPEARS TO CALL FOR LESS TIMBER HARVESTING IN OREGON AND MORE HARVESTING IN WASHINGTON STATE HE SAID HE COULDN'T PREDICT HOW IT WOULD AFFECT HARVESTING IN CALIFORNIA 9312130154 931213 NEW HEAD OF MASSACHUSETTS GENERAL STRESSES INCREASED COSTCONSCIOUSNESS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON TEACHING HOSPITALS SHOULD STEP UP THEIR RESEARCH ON SUCH CLINICAL ISSUES AS LOWERING PATIENT COSTS SAID SAMUEL THIER THE NEXT HEAD OF MASSACHUSETTS GENERAL HOSPITAL DR THIER PRESIDENT OF BRANDEIS UNIVERSITY WAS SELECTED LAST WEEK TO RUN MASSACHUSETTS GENERAL STARTING IN THE SUMMER IN THAT POST HE WILL TAKE CHARGE OF ONE OF AMERICA'S MOST PRESTIGIOUS HOSPITALS AS IT PREPARES TO MERGE WITH ANOTHER TOP BOSTON HOSPITAL BRIGHAM & WOMEN'S TO CREATE A MASSIVE 1800BED MEDICAL CENTER MASSACHUSETTS GENERAL WHICH IS AFFILIATED WITH THE HARVARD MEDICAL SCHOOL HAS LONG BEEN A NATIONAL TRENDSETTER FOR LABORATORY RESEARCH AND MEDICAL PROCEDURES HOWEVER WHILE DELIVERING SOME OF THE MOST EXPENSIVE CARE IN THE US THE HOSPITAL HAS REMAINED COSTUNCONSCIOUS SOME OF ITS OWN DOCTORS ACKNOWLEDGE IN AN INTERVIEW DR THIER SAID HE HOPES TO TURN MASSACHUSETTS GENERAL INTO ANOTHER KIND OF MODEL ONE THAT INCREASES COSTEFFICIENCY WITHOUT COMPROMISING BASIC RESEARCH OR PATIENT CARE A WAY OF LIFE IS CHANGING DR THIER ASSERTED ACADEMIC MEDICAL CENTERS ARE BEING FORCED TO REIN IN COSTS QUICKLY HE CONTENDED BECAUSE OF GROWING PRICEPRESSURE FROM INSURERS AS WELL AS THE MOVEMENT IN WASHINGTON TO ENACT HEALTHCARE LEGISLATION TOP TEACHING HOSPITALS HAVEN'T CONDUCTED MUCH COSTORIENTED RESEARCH INVOLVING PATIENTS INSTEAD THE HOSPITALS HAVE CONCENTRATED ON DISCOVERING FUNDAMENTAL MEDICAL TECHNIQUES OFTEN WORKING AT THE MOLECULAR LEVEL RESEARCH ON TREATMENT COSTS AND EFFECTIVENESS HAS BEEN CARRIED OUT MOSTLY BY SCHOOLS OF PUBLIC HEALTH AND BY SUCH THINK TANKS AS RAND CORP I WOULD LIKE TO SEE THE MGH BUILD A STRONGER BASE OF CLINICAL RESEARCH DR THIER SAID PATIENTORIENTED RESEARCH THAT HOSPITALS DO UNDERTAKE IS LARGELY FINANCED BY DRUG COMPANIES WANTING TO BRING NEW MEDICINES TO MARKET DR THIER INDICATED THAT HE DOESN'T WANT HIS HOSPITAL'S CLINICAL RESEARCH TO BE OVERLY DEPENDENT ON INDUSTRY WHAT IF WE COME UP WITH A NEW PRACTICE THAT TAKES MONEY OUT OF THE SYSTEM HE ASKED OTHER BIG TEACHING HOSPITALS ARE STARTING RESEARCH ON TREATMENT COSTS AND EFFECTIVENESS SAID GEORGE LUNDBERG EDITOR OF THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION I EXPECT SUCH RESEARCH TO FLOURISH WITH THE PRESSURES OF HEALTHSYSTEM REFORM HE SAID NOW THAT IT'S SO MUCH IN THE BEST INTERESTS OF THE LARGEST HEALTHDELIVERY GROUPS TO DISCOVER THE BEST WAYS TO DELIVER MAXIMUM SERVICES FOR MINIMUM COST DR LUNDBERG ADDED IT'S NOT AT ALL SURPRISING THAT SUCH INSTITUTIONS WILL ENTER HEALTHSERVICES RESEARCH IN A BIG WAY LAST YEAR MASSACHUSETTS GENERAL SPENT 161 MILLION ON MEDICAL RESEARCH FAR MORE THAN MOST TEACHING HOSPITALS ABOUT HALF THAT MONEY CAME FROM GOVERNMENT WHILE 41 MILLION CAME FROM INDUSTRY DR THIER SAID HE DOESN'T EXPECT MASSACHUSETTS GENERAL'S PENDING MERGER WITH BRIGHAM & WOMEN'S TO DISRUPT EXISTING RESEARCH PROJECTS BEING FINANCED BY INDUSTRY IN RECENT YEARS MASSACHUSETTS GENERAL HAS LINED UP BIG MULTIYEAR RESEARCH GRANTS FROM SHISEIDO CO OF JAPAN HOECHST AG OF GERMANY BRISTOLMYERS SQUIBB CO AND THE STERLING WINTHROP UNIT OF EASTMAN KODAK CO ON ANOTHER ISSUE DR THIER SAID IT'S POSSIBLE THAT AFTER THE HOSPITAL MERGER TAKES EFFECT THE COMBINED INSTITUTION WILL SEEK TO DEVELOP ITS OWN HEALTHMAINTENANCE ORGANIZATION OR BRING AN EXISTING ONE INTO ITS FOLD BRIGHAM & WOMEN'S HOSPITAL CURRENTLY HAS CLOSE TIES WITH HARVARD COMMUNITY HEALTH PLAN WHICH SERVES OVER 500000 PEOPLE MOSTLY IN MASSACHUSETTS IN A SIGN OF FURTHER CONSOLIDATION AMONG HOSPITALS THE BOSTON BUSINESS JOURNAL REPORTED THAT MERGER TALKS HAVE BEGUN BETWEEN BOSTON UNIVERSITY MEDICAL CENTER AND LAHEY CLINIC IN BURLINGTON MASS FOR THE PAST YEAR THE NUMBER OF HOSPITALS SEEKING TO MERGE HAS BEEN RUNNING AT DOUBLE THE YEAREARLIER PACE ACCORDING TO JUSTICE DEPARTMENT FIGURES 9312130153 931213 ALBANK BUYS BACK STOCK ALBANY NY ALBANK FINANCIAL CORP COMPLETED ITS THIRD BUYBACK OF 5 OF ITS COMMON STOCK OUTSTANDING AND IS SEEKING REGULATORY APPROVAL TO BEGIN A FOURTH ALBANK THE HOLDING COMPANY FOR ALBANY SAVINGS BANK FSB SAID IT HAS PURCHASED 22 MILLION SHARES OF COMMON STOCK SINCE THE FIRST BUYBACK WHICH BEGAN IN JUNE 1992 ANOTHER 5 PURCHASE WOULD COVER 673600 SHARES ALBANK HAS 28 BILLION OF ASSETS 9312130152 931213 LETTERS TO THE EDITOR WE MUST HAVE RIGHT OF SELFDEFENSE IN RESPONSE TO ALBERT R HUNT'S NOV 18 POLITICS & PEOPLE COLUMN GUN CONTROL IS ESSENTIAL TO US CRIME CONTROL MR HUNT POINTS OUT THE LOW NUMBER OF HANDGUNRELATED DEATHS IN BRITAIN CANADA AND JAPAN HOWEVER THE LOW RATES IN THOSE COUNTRIES PRECEDED THEIR STRONG ANTIGUN LAWS CLEARLY A LOW RATE OF VIOLENCE IS A CULTURAL PHENOMENON THE NONGUNRELATED HOMICIDE RATE IN THE US IS SEVERAL TIMES HIGHER THAN JAPAN'S TOTAL RATE IF WE ARE TO COMPARE OURSELVES WITH OTHER COUNTRIES HOW ABOUT SWITZERLAND THERE ARE ABOUT 600000 FULLY AUTOMATIC WEAPONS IN PRIVATE HANDS IN THAT COUNTRY FOR THE PURPOSE OF CIVIL DEFENSE YET THESE MILITARY FIREARMS DO NOT RESULT IN HIGH RATES OF CRIME GUN AVAILABILITY DOES NOT NECESSARILY LEAD TO GUN VIOLENCE IN ANOTHER EXAMPLE CLOSER TO HOME IN 1982 THE TOWN OF KENNESAW GA ENACTED A LOCAL ORDINANCE REQUIRING CITIZENS TO KEEP A GUN IN THEIR HOMES THIS RESULTED IN A 90 DECREASE IN BURGLARIES FOR THE SEVEN MONTHS FOLLOWING ITS ENACTMENT A FAR GREATER DECREASE THAN THE PREVIOUS YEAR OR FOR THE REST OF GEORGIA FOR THAT MATTER CLEARLY GUN PROLIFERATION CAN RESULT IN A DROP IN THE CRIME RATE IF WE ARE SUCH A VIOLENT SOCIETY ISN'T A TOTAL GUN BAN NECESSARY WILL IT WORK THE FEDERAL GOVERNMENT HAS A HARD ENOUGH TIME STOPPING THE FLOW OF ILLEGAL DRUGS INTO THIS COUNTRY COULD IT STOP A FLOW OF FIREARMS GUN LAWS RESTRICTING SEMIAUTOMATIC WEAPONS WILL HAVE A NEGLIGIBLE EFFECT ON CRIME ACCORDING TO THE FBI ASSAULT WEAPONS ACCOUNT FOR A VERY LOW PERCENTAGE OF GUN CRIME FURTHER MANUFACTURERS CAN ALWAYS ALTER THEIR PRODUCT TO GET AROUND THE LAW MR HUNT WOULD COUNTER THIS ARGUMENT BY SAYING ALL PRIVATELY OWNED GUNS SHOULD BE BANNED THIS IS THE MOST DISTURBING AND OMINOUS PART OF THE ANTIGUNNER'S BATTLE CRY IN A FREE SOCIETY PEOPLE MUST HAVE THE RIGHT OF SELFDEFENSE TODAY THAT MEANS ACCESS TO FIREARMS SO ALBERT HUNT BELIEVES THAT BANNING MOST PRIVATE OWNERSHIP OF GUNS IS A SENSIBLE NOTION AND WILL HELP CONTROL CRIME WELL AL SHOULD KNOW HE WORKS IN THE DISTRICT OF COLUMBIA WHERE SINCE 1976 RESIDENTS HAVE NOT BEEN PERMITTED TO BUY HANDGUNS HOWEVER HANDGUNS IN POSSESSION BEFORE 1976 ARE LEGAL ED THIS PROHIBITION OF COURSE IS THE REASON WHY VIOLENT CRIME ESPECIALLY MURDER BY HANDGUN IS PRACTICALLY UNHEARD OF THERE THERE IS NO EXCUSE FOR THE INSULTING NAMECALLING EMPLOYED IN MR HUNT'S ARTICLE CALLING NRA LEADERS THUGS MR HUNT'S USE OF THE TERM THUG IS DEMEANING TO HIM TO YOUR PUBLICATION AND TO NRA MEMBERS I AM A GEORGETOWN AND YALE LAW GRADUATE HAVE BEEN A CORPORATE LAWYER FOR MORE THAN 30 YEARS AND I HAVE BEEN A MEMBER OF THE NRA SINCE I WAS A TEENAGER SINCE THE 1960S THE US GOVERNMENT HAS PERFORMED SOCIAL ENGINEERING ON OUR INNER CITIES WITH THE STATED PURPOSE OF IMPROVING THE LIVES OF UNDERPRIVILEGED AMERICANS INSTEAD WE HAVE A TAXPAYERFUNDED HELL OF PUBLIC HOUSING OUTCOMEBASED EDUCATION AND AN ILLEGITIMACY BIRTH RATE APPROACHING 70 IN MANY MINORITY COMMUNITIES THESE POLICIES HAVE SPAWNED ARMIES OF MALCONTENTS WHO PREY ON OTHERS AND ON THEMSELVES IN THE FORM OF GANGS AND VIOLENT YOUTHS YET MR HUNT CHOOSES TO ATTACK THE NRA AND THE HONEST GUN OWNERS AS THE ONES WHO ARE RESPONSIBLE FOR THE RISING LEVEL OF CRIME AND VIOLENCE IN OUR COMMUNITIES MORE THAN A MILLION TIMES A YEAR DATA FROM CRIMINOLOGIST GARY KLECK PEOPLE LEGITIMATELY DEFEND THEMSELVES WITH FIREARMS WITH NO SHOTS FIRED MORE THAN 90 OF THE TIME YET PRIVATE CITIZENS SHOOT MORE CRIMINALS EVERY YEAR THAN DO THE POLICE THE MORE WE DISARM THE LAWABIDING MEMBERS OF OUR SOCIETY WITH AMMUNITION TAXES AND WAITING PERIODS THE EASIER IT WILL BE FOR CRIMINALS TO FIND EASY PREY A MOTHER OF A ONEYEAROLD CHILD WAS SODOMIZED IN BROAD DAYLIGHT BY A GANG OF SIX TEENAGERS THE ATTACKERS WERE LATER FOUND BY POLICE TO BE HAPPILY PLAYING BASKETBALL HOW CAN THESE THUGS BE SO CAVALIER BECAUSE WE HAVE A SYSTEM WHERE CRIMINALS ESPECIALLY JUVENILE OFFENDERS FACE MINIMUM PRISON TERMS AND WHERE INTENDED VICTIMS ARE FORBIDDEN BY LAW TO POSSESS THE ABILITY TO DEFEND THEMSELVES IT IS NOT SURPRISING THAT WE HAVE A SERIOUS VIOLENT CRIME PROBLEM IN THE US WHEN MR HUNT AND HIS FRIENDS WOULD RATHER ATTACK THE THUGS WHO RUN THE NRA THAN THE THUGS WHO ARE COMMITTING CRIME IN HIS ARGUMENT FOR THE BRADY BILL MR HUNT QUOTES A JUSTICE DEPARTMENT STUDY STATING THAT MORE THAN ONEQUARTER OF FEDERAL PRISONERS PURCHASED THEIR GUNS FROM GUN DEALERS I BELIEVE THE CONVERSE IS MORE RELEVANT THAT ALMOST THREEQUARTERS OF FEDERAL PRISONERS OBTAINED THEIR GUNS ILLEGALLY YOU CAN BET THAT WITH THE PASSAGE OF BRADY BILL TYPE LEGISLATION THE PERCENTAGE OF CRIMINALS WHO OBTAIN GUNS ILLEGALLY WILL BE CLOSER TO 100 WHAT IS ESSENTIAL TO CRIME CONTROL IS NOT MORE GUN CONTROL BUT A CRIMINAL JUSTICE SYSTEM THAT PUTS PEOPLE IN JAIL WHO COMMIT CRIMES WITH A GUN THREE STRIKES AND YOU'RE OUT LEGISLATION WILL DO MORE TO REDUCE CRIME THAN 100 BRADY BILLS 9312130151 931213 WHO'S NEWS GREAT ATLANTIC & PACIFIC TEA CO GREAT ATLANTIC & PACIFIC TEA CO MONTVALE NJ THIS GROCERY RETAILER NAMED CLIFFORD J HORLER SENIOR VICE PRESIDENT DEVELOPMENT AND REAL ESTATE A NEW POSITION MR HORLER 49 YEARS OLD MOST RECENTLY WAS VICE PRESIDENT ENGINEERING AND CONSTRUCTION AT THE COMPANY AND WILL RETAIN RESPONSIBILITY FOR THOSE AREAS MR HORLER'S ADDED RESPONSIBILITIES STEM IN PART FROM THE APPOINTMENT OF CHRISTIAN WE HAUB 29 AS PRESIDENT MR HAUB HAD BEEN VICE PRESIDENT WORKING ON REAL ESTATE AND STRATEGY 9312130150 931213 LAW LEGAL BEAT PARAMOUNT DECISION COULD SPARK FRESH LEGAL BATTLES OVER MERGERS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THE DELAWARE SUPREME COURT'S DECISION IN THE PARAMOUNTQVC FIGHT IS LIKELY TO SPARK NEW LEGAL BATTLES OVER THE QUESTION OF WHEN A MERGER BRINGS ABOUT A CHANGE OF CONTROL AT A COMPANY TAKEOVER SPECIALISTS SAID THE COURT RULED LAST WEEK THAT PARAMOUNT COMMUNICATIONS INC WILL HAVE TO CONSIDER QVC NETWORK INC'S 101 BILLION OFFER ON AN EQUAL BASIS WITH VIACOM INC'S FRIENDLY 95 BILLION BID IN A 12PAGE ORDER THE THREEJUDGE PANEL RELIED HEAVILY ON THE FACT THAT THE FRIENDLY TRANSACTION WOULD GIVE CONTROLLING INTEREST IN PARAMOUNT TO A SINGLE SHAREHOLDER VIACOM CHAIRMAN SUMNER REDSTONE BY HANDING THE REINS TO MR REDSTONE THE DEAL WOULD EFFECTIVELY CONSTITUTE A SALE OF PARAMOUNT RATHER THAN WHAT THE COMPANIES HAD SOUGHT TO CALL A STRATEGIC ALLIANCE THE COURT RULED WHETHER A DEAL IS A SALE OR A MERE ALLIANCE IS CRUCIAL BECAUSE ONCE A COMPANY INDICATES ITS INTENTION TO SELL IT MUST GIVE EQUAL CONSIDERATION TO OTHER OFFERS AND USUALLY MUST SELL TO THE HIGHEST BIDDER BUT THE RULING DOESN'T CLEARLY DEFINE WHAT MAKES UP A CHANGE OF CONTROL AND THEREFORE A SALE FOR EXAMPLE IT DOESN'T SAY WHETHER SUCH A CHANGE WOULD OCCUR IF AN ORGANIZED GROUP OF SHAREHOLDERS RATHER THAN A SINGLE INDIVIDUAL HAS MAJORITY CONTROL NOR DOES IT SAY WHETHER CONTROL MEANS OWNING MORE THAN 50 OF A COMPANY'S VOTING STOCK AS MR REDSTONE WOULD OR WHETHER 25 OR 40 MIGHT BE ENOUGH THE EMPHASIS ON THIS CHANGEOFCONTROL LOGIC IS GOING TO LEAD THEM INTO A LEGAL VIETNAM SAID JOSEPH GRUNDFEST A FORMER MEMBER OF THE SECURITIES AND EXCHANGE COMMISSION AND A PROFESSOR AT STANFORD LAW SCHOOL THE AMBIGUITY HAS LEFT TAKEOVER LAWYERS UNCERTAIN ABOUT HOW MUCH THE DELAWARE COURT HAS ERODED ITS 1989 DECISION GIVING TIME INC WIDE LATITUDE TO IGNORE UNSOLICITED BIDS AFTER ITS FRIENDLY MERGER PLANS WITH WARNER COMMUNICATIONS INC WERE ANNOUNCED THE UNCERTAINTY WILL CONTINUE AT LEAST UNTIL THE COURT EXPLAINS ITS REASONING IN A FULLBLOWN OPINION IN THE PARAMOUNT CASE WHICH ISN'T EXPECTED FOR WEEKS OR EVEN MONTHS FOR NOW TAKEOVERSTOCK TRADERS INVESTMENT BANKERS AND LAWYERS MUST EXTRAPOLATE FROM WHAT THE COURT REVEALED IN ITS INITIAL ORDER IF THE COURT MEANT TO LIMIT ITS DECISION TO COMPANIES SUCH AS VIACOM THEN ONLY MERGERS INVOLVING BIG PUBLIC COMPANIES WITH DOMINANT SINGLE SHAREHOLDERS SUCH AS COMCAST CORP AND MICROSOFT CORP WOULD BE AFFECTED BUT MANY LAWYERS SAID THE LANGUAGE OF THE INITIAL RULING MAY SIGNAL THE BEGINNING OF A BROAD RETREAT FROM THE TIME WARNER INC DECISION WHICH EMPHASIZED THE NEED TO DEFER TO DIRECTORS' JUDGMENTS CONCERNING LONGTERM STRATEGY THE COURT HAS HAD SECOND THOUGHTS ABOUT TIME WARNER SAID ALAN BROMBERG A CORPORATELAW PROFESSOR AT SOUTHERN METHODIST UNIVERSITY HISTORY PROVED THAT DECISION TO BE SO DISASTROUSLY WRONG THAT I THINK THE COURT HAS NOW TAKEN THAT LESSON TO HEART AND SAID WHEN THERE ARE TWO BIDS OUT THERE DON'T STAND IN THE WAY OF ONE OF THEM SOME LAWYERS SAID THEY HOPED THE COURT'S FINAL RULING DOESN'T RELY EXTENSIVELY ON THE FACT THAT CONTROL OF PARAMOUNT WOULD SHIFT TO A SINGLE INDIVIDUAL IF SO THE COURT WILL BE DRAWING A VERY DANGEROUS DISTINCTION MR GRUNDFEST SAID IT DOESN'T MAKE SENSE THAT IT'S EASIER TO DO A FRIENDLY DEAL WITH A PUBLICLY TRADED COMPANY AND HARDER TO DO A FRIENDLY DEAL WITH A PRIVATELY HELD FIRM OR WITH A PUBLICLY TRADED COMPANY THAT HAS A MAJORITY HOLDER HE SAID NO MATTER HOW THE FINAL RULING IS WRITTEN LAWYERS SAID COMPANIES CONSIDERING FRIENDLY MERGERS WILL PROBABLY HAVE TO BE MUCH MORE CAREFUL IF THEY WANT TO FEND OFF HOSTILE BIDS IN PARTICULAR THE COURT HAS INDICATED IT WILL BE SUSPICIOUS OF COMPANIES THAT SEEK TO DESCRIBE SUCH DEALS AS STRATEGIC MERGERS RATHER THAN SALES UNDER THE SURFACE OF THE RULING IS A REAL CYNICISM AND SKEPTICISM OF THE WHOLE PROCESS THE WHOLE PARAMOUNT BOARD AND THE WHOLE NOTION THAT WHAT THEY WERE DOING WAS RIGHT SAID ONE TAKEOVERSTOCK TRADER FAMILIAR WITH THE CASE PARAMOUNT HAD TRIED TO ARGUE THAT THE PROPOSED TRANSACTION WITH VIACOM WASN'T A SALE BECAUSE IT WOULD LARGELY RELY ON STOCK TRANSFERS RATHER THAN THE KIND OF HEAVY DEBT FINANCING USED IN MANY 1980S BUYOUTS BUT THE COURT WAS UNPERSUADED THIS SUGGESTS THE CURRENT WAVE OF EQUITYBASED MERGERS MAY NOT BE SCRUTINIZED ANY MORE LENIENTLY THAN THE HIGHLY LEVERAGED ACQUISITIONS OF THE PAST DECADE SOME LAWYERS SAID THE FEDERAL BUREAU OF INVESTIGATION AGREED TO SETTLE A DISCRIMINATION SUIT BROUGHT BY AN AGENT WHO WAS FIRED AFTER THE FBI LEARNED THAT HE IS HOMOSEXUAL UNDER THE SETTLEMENT THE AGENCY AGREES NOT TO DISCRIMINATE AGAINST EMPLOYEES OR JOB APPLICANTS ON THE BASIS OF SEXUAL ORIENTATION OR HOMOSEXUAL CONDUCT THE SUIT FILED IN FEDERAL COURT IN SAN FRANCISCO WAS A CLASS ACTION ON BEHALF OF ALL GAY MEN OR LESBIANS WHO ALLEGED DISCRIMINATION BY THE FBI FRANK BUTTINO THE AGENT WHO BROUGHT THE LAWSUIT AGREED TO ACCEPT AN UNDISCLOSED MONETARY SETTLEMENT RATHER THAN CONTINUING TO SEEK REINSTATEMENT MR BUTTINO'S 20YEAR CAREER AT THE FBI ENDED IN 1989 AFTER AN ANONYMOUS TIP LED TO AN INVESTIGATION OF HIS SEX LIFE MR BUTTINO SAID HE INITIALLY LIED TO INVESTIGATORS WHEN ASKED IF HE WAS GAY BECAUSE HE WOULD HAVE BEEN FIRED FOR BEING HOMOSEXUAL MICHAEL FITZGERALD AN ATTORNEY FOR MR BUTTINO AT THE LOS ANGELES LAW FIRM HELLER EHRMAN WHITE & MCAULIFFE SAID THAT AS PART OF THE SETTLEMENT THE FBI ALSO AGREED TO RENEW THE APPLICATION OF DANA TILLSON A PRIVATE INVESTIGATOR WHO CLAIMS SHE WAS DENIED A JOB AS AN FBI AGENT BECAUSE SHE IS A LESBIAN THE NEW POLICY IS IN LINE WITH A STATEMENT BY ATTORNEY GENERAL JANET RENO THIS MONTH THAT THE JUSTICE DEPARTMENT AND ITS AGENCIES INCLUDING THE FBI WOULD NO LONGER DISCRIMINATE AGAINST HOMOSEXUALS GAYRIGHTS ADVOCATES SAID THE FBI'S STANCE COULD INFLUENCE OTHER LAWENFORCEMENT AGENCIES AROUND THE COUNTRY INCLUDING LOCAL POLICE DEPARTMENTS SOME OF WHICH HAVE BANNED HOMOSEXUALS AS OFFICERS THE FBI IS THE AGENCY THAT EVERYONE ELSE LOOKS TO FOR GUIDANCE IN LAWENFORCEMENT ISSUES SAID EVAN WOLFSON AN ATTORNEY AT LAMBDA LEGAL DEFENSE AND EDUCATION FUND WADE LAMBERT CONTRIBUTED TO THIS COLUMN 9312130149 931213 FIAT NOT VIEWED AS CANDIDATE FOR A MERGER SEVERAL SUITORS MENTIONED BUT MANY ANALYSTS SAY CONCERN ISN'T INTERESTED BY DL MARKS SPECIAL TO THE WALL STREET JOURNAL MILAN THE RECENT COLLAPSE OF THE MERGER TALKS BETWEEN AB VOLVO AND RENAULT SA HAS CAST THE SPECULATIVE SPOTLIGHT ON ITALY'S FIAT SPA AS THE NEXT MAJOR EUROPEAN VEHICLE MAKER LIKELY TO ENTER THE MARRIAGE STAKES SEVERAL SUITORS FOR FIAT HAVE BEEN MENTIONED FROM AMONG THE PACK OF EUROPE'S HIGHVOLUME CAR MAKERS EACH ONE BACKED BY A CERTAIN INDUSTRIAL LOGIC BUT MANY ANALYSTS NOTING SIGNS OF A EUROPEAN ECONOMIC UPTICK AND EVIDENCE OF FIAT'S OWN AMBITIONS DOUBT THE COMPANY IS INTERESTED FIAT'S TALKING TO EVERYBODY AND EVERYBODY'S TALKING TO FIAT SAID ONE LONDONBASED CAR ANALYST WHO REQUESTED ANONYMITY THE POTENTIAL IS THERE BUT WHETHER THE TIMING IS RIGHT IS ANOTHER QUESTION FIAT SHARES HAVE BEEN RISING SMARTLY SINCE NEWS OF THE VOLVORENAULT ANNULMENT CLOSING AT 4165 LIRE ON THE MILAN STOCK EXCHANGE FRIDAY THIS COMPARES WITH 3975 LIRE THE PREVIOUS FRIDAY THE DAY AFTER THE VOLVORENAULT DEAL COLLAPSED FRENCH STATEOWNED CAR MAKER RENAULT WAS JILTED IN ITS PROPOSED UNION WITH SWEDEN'S VOLVO BECAUSE OF A REBELLION AMONG THE LATTER'S INSTITUTIONAL SHAREHOLDERS THE TWO COMPANIES STILL MAINTAIN CROSSSHAREHOLDINGS IN EACH OTHER ANALYSTS SAID THAT THE COLLAPSE OF THE VOLVORENAULT PLAN INDICATES THAT THE MUCHNEEDED CONSOLIDATION OF EUROPE'S CAR MANUFACTURERS ISN'T NECESSARILY THE CURE FOR THE INDUSTRY WHICH IS SUFFERING THE SHARPEST DOWNTURN SINCE WORLD WAR II INDEED THEY SUGGEST THAT A SMATTERING OF LOGIC DICTATES AGAINST ANY LINKUP FOR FIAT FOR THE MOMENT FOR A VARIETY OF REASONS THEY SAY THE COMPANY LIKE OTHER EUROPEAN CAR MAKERS IS JUST BEGINNING TO SHOW SIGNS OF LIFE AS THE ECONOMIC CYCLE FINALLY BEGINS TO TILT IN FIAT'S FAVOR AFTER MORE THAN TWO YEARS OF DIFFICULT TIMES VOLVO SHAREHOLDERS OPPOSED THE MERGER WITH RENAULT ON THE GROUNDS THAT THE COMPANY DIDN'T NEED RENAULT TO MEND ITS FORTUNES AND WOULD ALSO SOON RECOVER FINANCIALLY DUE TO IMPROVED DEMAND IN ADDITION FIAT IS IN THE PROCESS OF COMPLETING A 58 TRILLION LIRE 346 BILLION RIGHTS ISSUE THE LARGEST EVER LAUNCHED IN ITALY AND ONE THAT IS INTENDED TO SHORE UP THE COMPANY'S BALANCE SHEET DAGMAR BOTTENBRUCH EUROPEAN AUTOINDUSTRY ANALYST AT CREDIT SUISSE FIRST BOSTON CORP OR CSFB HERE SAID FIAT CAN POSTPONE FINDING A PARTNER UNTIL THE EXPECTED UPTURN IN EUROPEAN ECONOMIES SHE SAID THAT ALTHOUGH 1993 WILL BE THE LOW POINT FOR THE CAR INDUSTRY AND FOR FIAT AS WELL THE LATTER PART OF 1994 SHOULD START TO SEE AN IMPROVEMENT IN THE MACROECONOMIC ENVIRONMENT WITH FIAT SHOWING GAINS FROM RESTRUCTURING AND A NEW PRODUCT RANGE THE APPETITE FOR PARTNERSHIP IS GOING TO DECREASE AS COMPANIES SLOWLY MOVE OUT OF CRISIS YEARS AND INTO THE NEXT ECONOMIC UPTURN SAID ANOTHER ANALYST CAR COMPANIES TEND TO MAKE A LOT OF MONEY QUICKLY WHEN COMING OUT OF RECESSION BECAUSE OF THE PENTUP DEMAND HE SAID IT'S THE CLASSIC LIGHT AT THE END OF THE TUNNEL AND APART FROM EXPECTATIONS OF A EUROPEAN ECONOMIC UPTURN MS BOTTENBRUCH NOTED FIAT HAS JUST EMBARKED ON AN AMBITIOUS INVESTMENT PROGRAM HAS A FULL PIPELINE OF NEW PRODUCTS IS PROFITING FROM LAST YEAR'S DEVALUATION OF THE LIRA AND HAS TAKEN ON SOME FRESH MANAGEMENT THAT IS DETERMINED TO TURN THE COMPANY AROUND IN ADDITION IT HAS WON MAJOR CONCESSIONS FROM ITS LABOR UNIONS AND HAS JUST SIGNED NEW FLEXIBLE LABOR AGREEMENTS THAT ALLOW IT TO HIRE WORKERS ON AN ASNEEDED BASIS THE COMPANY IS ABOUT TO FIND ITSELF ON AN UPWARD PATH SAID CSFB'S MS BOTTENBRUCH THEY AREN'T IN DESPERATE NEED OF A PARTNER AT THE MOMENT KEITH HAYES EUROPEAN AUTO INDUSTRY ANALYST AT MERRILL LYNCH INTERNATIONAL IN LONDON SAID ANY FIAT MERGER PLAN WILL RUN INTO THE SAME PROBLEM THAT THE VOLVORENAULT MERGER HAD NO EUROPEAN CAR COMPANY IS IN SERIOUS ENOUGH FINANCIAL TROUBLE TO WANT TO GIVE UP ITS NATIONAL IDENTITY STOCKBROKERS AT ALBERTINI & C HERE HOWEVER SAID IT'S POSSIBLE THAT FIAT COULD STRIKE A DEAL WITH ANOTHER INDUSTRIAL PARTNER AND SOON MARKET SPECULATION LAST WEEK HAS MOST FURIOUSLY CENTERED ON A RENAULTFIAT TIE BUT ONE ALBERTINI BROKER SAID RENAULT AND FIAT AREN'T REALLY A GOOD FIT THEY HAVE THE SAME PROBLEMS THE SAME PRODUCT RANGES AND COMPETE IN THE SAME SEGMENT HE SAID FIAT IS MORE INTERESTED IN HAVING A PARTNERSHIP WITH A COMPANY THAT POSSESSES A DIVERSE PRODUCT RANGE INSTEAD ALBERTINI ANALYSTS THINK THE IDEAL PARTNER FOR FIAT COULD BE FORD EUROPE THE EUROPEAN ARM OF FORD MOTOR CO SAID THE BROKERAGE HOUSE ADDING THAT FORD'S LARGER GLOBAL SIZE STRONG FINANCIAL POSITION AND MARKET PRESENCE MAKE IT A PERFECT FIT WITH FIAT IN FACT FIAT DID HOLD TALKS WITH FORD EUROPE DURING 1986 WITH THE AIM OF POSSIBLY MERGING THE TWO GROUPS THE TALKS BLEW UP OVER THE ISSUE OF WHICH ENTITY WOULD HOLD MANAGEMENT CONTROL OVER THE OPERATION AS FOR FIAT A SPOKESMAN FOR THE COMPANY SAID IT STILL ENTERTAINS WITH RENAULT VERY MUCH PRELIMINARY TALKS AS FAR AS ATTEMPTED COOPERATION IN OUR FOUNDRY AND AUTOMOTIVECOMPONENTS OPERATIONS ARE CONCERNED HE ADDED THAT THIS FITS INTO FIAT'S STRATEGY OF PARTIAL AND INDUSTRIAL COOPERATION WITH OTHER CAR MANUFACTURERS THROUGHOUT EUROPE OTHER MARKETWATCHERS AGREE THAT THERE IS SOME COMMERCIAL LOGIC IN A FORDFIAT LINK IT'S AN INTERESTING IDEA SAID MERRILL LYNCH'S MR HAYES THEY HAVE COMPLEMENTARY GEOGRAPHIC STRENGTHS WHILE FORD IS LESS OF A NATIONAL VIRILITY SYMBOL AS IS THE CASE WITH VOLVO RENAULT AND PEUGEOT IT WOULDN'T CAUSE A PUBLIC OUTCRY FORD'S STRENGTH THROUGHOUT NORTHERN EUROPE COMBINED WITH FIAT'S DOMINANCE THROUGHOUT MUCH OF THE SOUTHERN PART OF THE CONTINENT IS SEEN AS A STURDY RATIONALE FOR ANY SUCH MOVE A COMBINED FORDFIAT GROUP WOULD HAVE A COMMANDING 22 SHARE OF THE EUROPEAN MARKET ONE BROKER ESTIMATED 9312130148 931213 WHO'S NEWS CARL KARCHER ENTERPRISES INC CARL KARCHER ENTERPRISES INC ANAHEIM CALIF WILLIAM P FOLEY II AND RON LANE WERE NAMED DIRECTORS OF THIS FASTFOOD COMPANY INCREASING THE BOARD TO NINE MEMBERS THE COMPANY SAID DETAILS OF FOUNDER CARL N KARCHER'S NEW TITLE AND RESPONSIBILITIES AS CHAIRMAN EMERITUS ARE STILL BEING WORKED OUT MESSRS FOLEY AND LANE ALLIES OF MR KARCHER ARE NOW THE COMPANY'S LARGEST SHAREHOLDERS MR FOLEY IS CHAIRMAN AND CHIEF EXECUTIVE OF TITLE INSURER FIDELITY NATIONAL FINANCIAL INC IRVINE CALIF MR LANE IS A NEWPORT BEACH CALIF REALESTATE INVESTOR 9312130147 931213 AM BEST SAYS PRUDENTIAL FACES POSSIBLE DOWNGRADE OLDWICK NJ AM BEST CO PUT PRUDENTIAL INSURANCE CO OF AMERICA ON REVIEW FOR A POSSIBLE DOWNGRADE CITING THE FINANCIAL IMPLICATIONS OF THE PRUDENTIAL SECURITIES MESS AND ALLEGATIONS OF INFLATED APPRAISALS IN THE REAL ESTATE FUNDS IT SELLS TO INSTITUTIONAL INVESTORS BEST CURRENTLY RATES THE CLAIMSPAYING ABILITY OF PRUDENTIAL AT ADOUBLEPLUS ITS HIGHEST RATING PRUDENTIAL SAID A DOWNGRADE WOULD BE UNJUSTIFIED GIVEN THAT ITS NET WORTH WILL INCREASE 1 BILLION THIS YEAR WE EXPECT TO DEMONSTRATE TO BEST THAT PRUDENTIAL IS FINANCIALLY STRONGER TODAY THAN WHEN BEST LAST AFFIRMED OUR ADOUBLEPLUS RATING SAID A PRUDENTIAL SPOKESMAN BEST ALSO CITED PRUDENTIAL'S EXPOSURE TO NATURAL DISASTERS PRUDENTIAL BASED IN NEWARK NJ POSTED A 940 MILLION NET LOSS LAST YEAR AS A RESULT OF HURRICANE ANDREW AND HAS SINCE BEEN TRYING TO REDUCE ITS VULNERABILITY TO BIG STORMS BEST HAS SO FAR HAD A MORE FAVORABLE OPINION OF PRUDENTIAL THAN THE OTHER MAJOR RATING AGENCIES MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP HAVE LOWERED PRUDENTIAL FROM THEIR TOP RANKINGS IN RESPONSE TO FALLING REAL ESTATE VALUES AND THE LOSS ON HURRICANE ANDREW IF BEST DOES DOWNGRADE PRUDENTIAL THE INSURER WOULD LIKELY MAINTAIN A SUPERIOR RATING SAID AM BEST SENIOR VICE PRESIDENT LARRY MAYEWSKI 9312130146 931213 PHYSICIAN CORP ACQUISITION MIAMI PHYSICIAN CORP OF AMERICA COMPLETED ITS ACQUISITION OF FAMILY HEALTH SYSTEMS INC FOR 44 MILLION IN A NEWS RELEASE PHYSICIAN AN OPERATOR OF HEALTHMAINTENANCE ORGANIZATIONS SAID AFTER THIS ACQUISITION IT HAS MORE THAN 460000 MEMBERS NATIONWIDE PHYSICIAN SAID THE PURCHASE WAS FUNDED FROM A PORTION OF ABOUT 74 MILLION IT RECEIVED IN PROCEEDS FROM THE RECENT SALE OF 4 MILLION OF ITS COMMON SHARES IN NASDAQ STOCK MARKET TRADING FRIDAY PHYSICIAN CLOSED AT 2425 UP 25 CENTS 9312130145 931213 FINANCING BUSINESS SEARCH CAPITAL CORP SEARCH CAPITAL CORP DALLAS SAID IT SOLD 24 MILLION SHARES AT 8 EACH IN AN INITIAL PUBLIC OFFERING THAT RAISED 169 MILLION AFTER UNDERWRITING FEES THE SHARES SOLD AMOUNT TO 20 OF THE COMPANY'S 12 MILLION SHARES OUTSTANDING THE LEAD UNDERWRITER BREAN MURRAY FOSTER SECURITIES INC WAS GRANTED AN OPTION TO BUY AN ADDITIONAL 360000 SHARES SEARCH CAPITAL BUYS USEDCAR LOANS AND PACKAGES THEM AS ASSETBACKED SECURITIES IN NASDAQ STOCK MARKET TRADING ITS SHARES CLOSED FRIDAY AT 9 UP 1 FROM THE OFFERING PRICE 9312130144 931213 DIVIDEND NEWS C R GIBSON CO C R GIBSON CO OF NORWALK CONN BOOSTED ITS QUARTERLY DIVIDEND 14 TO FOUR CENTS A SHARE FROM 35 CENTS PAYABLE JAN 28 TO STOCK OF RECORD JAN 3 THE PUBLISHING AND PAPER GIFT COMPANY SAID THE INCREASE REFLECTS CONTINUED BUSINESS STRENGTH WHICH IT EXPECTS TO CONTINUE THROUGH 1994 9312130143 931213 ASPIN ALLAYS FEARS OVER NORTH KOREA ARMS BUILDUP WASHINGTON DEFENSE SECRETARY LES ASPIN SAID HE IS CONFIDENT THAT THE NORTH KOREANS AREN'T CURRENTLY MAKING PLUTONIUM FOR NUCLEAR BOMBS AND THAT THE LIKELIHOOD OF WAR ON THE KOREAN PENINSULA HASN'T GROWN IN RECENT MONTHS THE SITUATION IS DANGEROUS BUT IT IS NO MORE DANGEROUS NOW THAN IT WAS THREE MONTHS AGO OR FIVE MONTHS AGO OR 10 MONTHS AGO HE SAID YESTERDAY ON NBC NEWS' MEET THE PRESS THE SECRETARY'S COMMENTS ARE IN KEEPING WITH THE MORECONCILIATORY STANCE THE CLINTON ADMINISTRATION HAS TAKEN LATELY ON NORTH KOREA ADDRESSING THE NUCLEAR QUESTION MR ASPIN SAID IT IS POSSIBLE THAT NORTH KOREA ALREADY POSSESSES A NUCLEAR DEVICE BUT HE EMPHASIZED THAT INTELLIGENCE GATHERED BY THE US GOVERNMENT INDICATES THAT THE SITUATION ISN'T DETERIORATING NOW THEY AREN'T DEVELOPING NEW PLUTONIUM THE ADMINISTRATION CURRENTLY IS CONDUCTING TALKS WITH NORTH KOREA OVER ITS REFUSAL TO ALLOW INTERNATIONAL ATOMIC ENERGY MONITORS TO INSPECT ALL ITS NUCLEAR FACILTIES 9312130142 931213 WHO'S NEWS NIAGARA MOHAWK POWER CORP NIAGARA MOHAWK POWER CORP SYRACUSE NY THIS ELECTRIC AND NATURALGAS UTILITY COMPANY ELECTED THREE NEW VICE PRESIDENTS MARTIN J MCMORMICK JR 58 YEARS OLD FORMERLY GENERAL MANAGER FOR NUCLEAR SAFETY ASSESSMENT LICENSING AND TRAINING WAS NAMED VICE PRESIDENT OF SAFETY ASSESSMENT AND SUPPORT EFFECTIVE JAN 1 ARTHUR W ROOS JR 41 WAS NAMED A VICE PRESIDENT AND CONTINUES AS TREASURER AND STEVEN W TASKER 36 WAS ELECTED A VICE PRESIDENT AND CONTINUES AS CONTROLLER SEPARATELY DARLENE D KERR 41 VICE PRESIDENT ELECTRIC CUSTOMER SERVICE WAS NAMED SENIOR VICE PRESIDENT OF THE DIVISION EFFECTIVE JAN 1 SUCCEEDING JOHN P HENNESSEY 55 WHO RETIRES DEC 31 9312130141 931213 WHO'S NEWS SOUTHERN CO SOUTHERN CO ATLANTA H ALLEN FRANKLIN 49 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GEORGIA POWER A UNIT OF THIS UTILITY COMPANY MR FRANKLIN SUCCEEDS AW BILL DAHLBERG NOW PRESIDENT OF SOUTHERN 9312130140 931213 GAO URGES DELAY IN F22 FROM BOEING AND LOCKHEED WASHINGTON THE GENERAL ACCOUNTING OFFICE HAS CALLED FOR A SEVENYEAR DELAY IN FIELDING OF THE F22 ADVANCED FIGHTER BEING DEVELOPED BY LOCKHEED CORP AND BOEING CO ACCORDING TO TODAY'S EDITIONS OF DEFENSE WEEK IN A CLASSIFIED GAO REPORT TO CONGRESSIONAL DEFENSE COMMITTEES AND REP JOHN CONYERS D MICH A FREQUENT CRITIC OF BIG DEFENSE PROGRAMS THE GAO SAYS THE PRODUCTION PHASE OF THE 96 BILLION PROGRAM CAN BE DELAYED BECAUSE THE NATION'S INVENTORY OF UPGRADED F15 FIGHTERS MADE BY MCDONNELL DOUGLAS CORP IS ADEQUATE TO MEET THE DIMINISHED THREAT ACCOMMPANYING THE DISMANTLING OF THE SOVIET UNION DEFENSE WEEK A WASHINGTON DC NEWSLETTER CITES UNCLASSIFIED PORTIONS OF THE CLASSIFIED REPORT THE GAO WHICH ALREADY HAD ADVOCATED DEEP NEW CUTS IN F22 FUNDING DURING CONGRESSIONAL BUDGETING RECOMMENDS IN ITS LATEST REPORT DELAYING UNTIL THE YEAR 2010 THE PRODUCTION OF ENOUGH F22 JETS TO REACH INITIAL OPERATING CAPABILTY CURRENT AIR FORCE PLANS CALL FOR THAT CAPABILITY BY THE YEAR 2003 THE GAO REPORT ALSO CALLS FOR THE DEFENSE DEPARTMENT TO DELAY ITS PLANNED START OF PRODUCTION IN 1996 BY A PERIOD OF TIME THAT WOULD FIT WITH A LATER INITIAL OPERATING CAPABILITY THE REPORT ASSUMES THE NATION WILL HAVE ABOUT 918 F15S INCLUDING ADVANCED F15E MODELS BY THE YEAR 2000 9312130138 931213 WHO'S NEWS VERSA TECHNOLOGIES INC VERSA TECHNOLOGIES INC RACINE WIS MICHAEL N POWELL RESIGNED HIS POSTS AS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES E MOHRHAUSER CITED DIFFERENCES IN MANAGEMENT PHILOSOPHY AS THE REASON FOR MR POWELL'S DEPARTURE THE MAKER OF SILICONERUBBER AND FLUIDPOWER PRODUCTS SAID ITS BOARD WILL MEET TOMORROW TO DISCUSS PLANS FOR SUCCESSION MR POWELL 45 YEARS OLD WAS EXECUTIVE VICE PRESIDENT OPERATIONS UNTIL BEING NAMED IN JULY 1992 TO THE PRESIDENT/COO POSTS MR POWELL COULDN'T BE REACHED FOR COMMENT 9312130137 931213 AUTOS WATCH OUT HONDA KOREAN AUTO MAKERS GO AFTER BUDGET BUYERS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT KOREAN CAR MAKERS ARE TRYING TO CAPITALIZE ON THE TROUBLES OF THEIR JAPANESE COMPETITORS WHEN ELVIS VALLA WENT SHOPPING FOR A NEW CAR LAST WINTER HE TOOK A CLOSE LOOK AT THE REDESIGNED HONDA CIVIC HE LIKED THE CAR'S STYLING AND QUALITY BUT NEARLY FLED THE LOT WHEN HE SAW THE 13000 PRICE TAG AT A HYUNDAI DEALERSHIP MR VALLA FOUND AN EXCEL GS FOR 4000 LESS IT'S NOT A MERCEDESBENZ SAYS MR VALLA 21 YEARS OLD BUT IT'S GOT ALL THE FEATURES I WANT AND I DIDN'T PAY BIG BUCKS IN ECONOMYMINDED FOLKS LIKE MR VALLA KOREA'S HYUNDAI MOTOR CO AND KIA MOTORS CO SEE A CHANCE TO TAKE ANOTHER CRACK AT THE AMERICAN MARKET SINCE JANUARY THE YEN HAS CONTINUED TO SURGE AGAINST THE DOLLAR WHILE THE KOREAN WON IS DEPRECIATING THE KOREAN CAR COMPANIES ARE AGGRESSIVELY TRYING TO DISTANCE THEMSELVES FROM THE JAPANESE ONE HYUNDAI ADVERTISEMENT READS REMEMBER WHEN JAPANESE CARS MEANT HIGH QUALITY AT REASONABLE PRICES APPARENTLY THE JAPANESE DON'T BUT EVEN WITH THEIR BARGAINBASEMENT PRICES THE KOREANS FACE A TOUGH CHALLENGE TOO MANY AMERICANS WERE BURNED BY HYUNDAI'S SHODDY QUALITY IN THE LATE 1980S AND CONTINUE TO THINK OF KOREAN VEHICLES AS SECOND RATE AND ANALYSTS SAY THAT KIA WHICH WILL BEGIN SELLING CARS IN THE US IN FEBRUARY MAY SUFFER FROM HYUNDAI'S POOR IMAGE HYUNDAI'S QUALITY MEASURED IN TERMS OF VISITS TO THE MECHANIC HAS IMPROVED 57 SINCE 1987 ALBEIT FROM LOW LEVELS ACCORDING TO JD POWER'S INITIAL QUALITY SURVEYS THE PERCEPTION OF HYUNDAI'S QUALITY LAGS BEHIND THE REALITY SAYS CHRISTOPHER CEDERGREN AN INDUSTRY CONSULTANT WITH AUTO PACIFIC GROUP INC STILL IT REMAINS NEAR THE BOTTOM OF MOST MAJOR SURVEYS ON CUSTOMER SATISFACTION AND VEHICLE QUALITY INCLUDING JD POWER'S THE STRESS WILL ALWAYS BE TO IMPROVE OUR PRODUCTS SAYS N DOUGLAS MAZZA HYUNDAI EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER THE KOREAN AUTO MAKERS HOPE TO BRING BACK BUYERS WITH THE RECIPE THAT FIRST WORKED FOR THE JAPANESE RELIABLE CARS AT A CHEAP PRICE PEOPLE LOOK AT JAPANESE PRICES AND ARE APPALLED CONTENDS BOB PARKER HYUNDAI'S VICE PRESIDENT OF SALES THESE PEOPLE ARE GOING TO COME TO OUR SHOWROOMS AND LOOK AT OUR PRODUCTS THAT'S A BIG SWITCH FOR HYUNDAI WHICH IN THE 1980S TRIED DESPERATELY TO RIDE THE COATTAILS OF JAPANESE AUTO MAKERS BACK THEN HYUNDAI FIGURED THAT AMERICANS WOULD SNAP UP ITS CARS IF THEY DIDN'T NOTICE THE VEHICLES WERE KOREAN INSTEAD OF JAPANESE HYUNDAI'S US SALES HIT 264282 VEHICLES IN 1988 MAKING IT ONE OF THE FASTESTGROWING AUTO COMPANIES IN US HISTORY THIS YEAR ITS SALES ARE FLAT COM PARED WITH A YEAR EARLIER AT 100531 VEHICLES A WELLEQUIPPED EXCEL WITH AIR CONDITIONING AND A CASSETTE PLAYER COSTS 8099 A SIMILARLY EQUIPPED TOYOTA TERCEL COSTS 10748 BUT ALSO COMES WITH AN AIR BAG THE BASE EXCEL IS THE LOWEST PRICED CAR IN THE US WITH A LIST PRICE OF 7190 THIS WINTER KIA WILL INTRODUCE ITS SEPHIA A COMPACT CAR WITH A STARTING PRICE OF LESS THAN 9000 OUR CAR IS DESIGNED SIMILAR TO JAPANESE CARS BUT COSTS A LOT LESS SAYS GREG WARNER KIA EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER A TOPOFTHELINE SEPHIA WILL COST ABOUT 11000 WHEREAS A SIMILARLY EQUIPPED TOYOTA COROLLA COSTS 16088 AND COMES WITH DUAL AIR BAGS THE SEPHIA HOWEVER WON'T HAVE AIRBAGS UNTIL 1995 TO REASSURE BUYERS UNEASY ABOUT QUALITY HYUNDAI OFFERS ONE OF THE MOST AGGRESSIVE WARRANTIES IN THE AUTO INDUSTRY ALL NEW CARS COME WITH A THREEYEAR OR 36000MILE BUMPER TO BUMPER WARRANTY ADDITIONALLY NEW CAR OWNERS RECEIVE TWO YEARS OF FREE SERVICE AND MAINTENANCE INCLUDING OIL CHANGES TIRE ROTATIONS AND WHEEL ALIGNMENTS BUYERS MAY RECEIVE A CASH REBATE IN LIEU OF THE SERVICE PROGRAM KIA SAYS IT WON'T MAKE HYUNDAI'S MISTAKES AND MR WARNER IS THE MAN TO AVOID THEM HE WAS HIRED BY HYUNDAI IN 1986 TO HELP LAUNCH ITS NEW LINE OF SMALL CARS HE RESIGNED IN 1989 AS THE COMPANY WAS BEING DOGGED BY PRODUCT AND CUSTOMERSERVICE COMPLAINTS MR WARNER SAYS KIA HAS ALREADY BE GUN TO ESTABLISH ITSELF IN THE US AS A MAKER OF RELIABLE VEHICLES IT MANUFACTURED THE FESTIVA SMALL CAR FOR FORD WHICH HAS A REPUTATION AS A WELLBUILT VEHICLE AND HAS JUST BEGUN ASSEMBLING ASPIRE FESTIVA'S SUCCESSOR FORD ALSO OWNS A 10 STAKE IN KIA KIA IS ALSO TESTING CONSUMER RESPONSE TO THE SEPHIA BY SELLING 2000 TO SEVERAL BUDGET RENT A CAR LOCATIONS IN CALIFORNIA NEVADA AND ARIZONA WE'VE HAD MANY FAVORABLE COMMENTS FROM RENTERS ABOUT THE CARS SAYS JACK SULLIVAN MAINTENANCE MANAGER OF BUDGET IN LAS VEGAS IT'S A GOOD CAR WITH A NICE RIDE MR WARNER SAYS KIA IS PLANNING A SLOW LAUNCH IN THE US IT WILL BEGIN SELLING CARS IN FEBRUARY THROUGH ABOUT 50 DEALERS IN 11 WESTERN STATES THE COMPANY EXPECTS TO HAVE DEALERSHIPS ACROSS THE US BY THE END OF 1995 KIA WHICH WON'T DISCLOSE ITS US SALES OBJECTIVES SAYS IT WILL OFFER PRODUCTS THAT ARE UNIQUE IN THE AMERICAN MARKET SUCH AS THE SPORTAGE A SPORTUTILITY VEHICLE THAT IT SAYS WILL BE THE MOST CARLIKE IN THE COUNTRY THE SPORTAGE WILL COST AROUND 14000 WHILE THE KOREANS ARE TARGETING THE JAPANESE DETROIT MAY SNEAK UP ON THEM GENERAL MOTORS CORP HAS BEEN PARTICULARLY AGGRESSIVE WITH ITS VALUE PRICE MARKETING STRATEGY WHICH ALLOWS BUYERS TO GET BETTEREQUIPPED CARS AT LOWER PRICES UNDER THE PROGRAM A CAVALIER EQUIPPED WITH ANTILOCK BRAKES POWER STEERING AND POWER DOOR LOCKS COSTS 8995 THE NEW CHRYSLER NEON IS DRAWING A LOT OF ATTENTION WITH AN EXPECTED PRICE OF 10000 TO 11000 THE FORD ESCORT AND GM'S SATURN ARE ALSO FORMIDABLE CONTENDERS IN THE SMALL CAR MARKET ANALYSTS SAY 9312130136 931213 INTERNATIONAL PEARSON PLC SELLS STAKE IN UNIT LONDON UNITED KINGDOM MEDIA AND ENTERTAINMENT COMPANY PEARSON PLC SAID IT SOLD 55 OF ITS OILSERVICES CONCERN CAMCO INTERNATIONAL INC FOR 130 MILLION 1942 MILLION PEARSON SAID IT SOLD 13750000 CAMCO SHARES AT 15 APIECE THROUGH AN INITIAL PUBLIC OFFERING IN NEW YORK THE 130 MILLION RAISED THROUGH THE IPO TOGETHER WITH THE POSITIVE EFFECT OF ELIMINATING INTERCOMPANY DEBT OF 70 MILLION WILL BE AVAILABLE FOR INVESTMENT IN PEARSON'S CORE BUSINESS THE COMPANY SAID PEARSON'S FLAGSHIP NEWSPAPER IS THE FINANCIAL TIMES OF LONDON 9312130135 931213 LTX CORP CANCELS OFFERING WESTWOOD MASS LTX CORP SAID IT WITHDREW ITS REGISTRATION STATEMENT FOR A PROPOSED PUBLIC OFFERING OF 5250000 COMMON SHARES THE COMPANY SAID IT HAD NO PLANS TO OFFER THE SHARES AT A LATER DATE THE SEMICONDUCTORTESTEQUIPMENT COMPANY HAD PLANNED TO USE ABOUT 35 MILLION IN ANTICIPATED PROCEEDS FROM THE SALE TO REPAY DEBT AND FOR CAPITAL SPENDING WORKING CAPITAL AND OTHER GENERAL PURPOSES 9312130134 931213 EXSOVIET TAG SALE MOVES MOON SUITS AT ULTRA WARP SPEED AUCTION AT SOTHEBY'S FETCHES 682 MILLION FOR REMNANTS OF RUSSIAN SPACE PROGRAM BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE COLD WAR IS OVER THE COSMONAUT COLLECTIBLES BOOM HAS JUST BEGUN SOTHEBY'S HOLDINGS INC AUCTION HOUSE FETCHED STRONG PRICES AT ITS LANDMARK SALE SATURDAY OF SPACE MEMORABILIA FROM THE FORMER SOVIET UNION THE HIGHLIGHT OF THE AUCTION CARRYING A PRESALE PRICE ESTIMATE OF 3 MILLION TO 5 MILLION WAS THE SOYUZ TM10 CAPSULE WHICH CARRIED THE FIRST JOURNALIST INTO SPACE INSTRUCTIONS FOR OPENING THE HATCH APPEAR ON IT IN BOTH ENGLISH AND RUSSIAN MAN INSIDE HELP IT SAYS TAKE THE KEY PUT INTO THE HOLE IT BROUGHT 165 MILLION SELLING TO A PRIVATE AMERICAN COLLECTOR WHO ANNOUNCED THAT IT MIGHT EVENTUALLY BE RETURNED TO RUSSIA TO BE EXHIBITED ALTOGETHER THE RUSSIAN SPACE HISTORY SALE WAS EXPECTED TO RAISE ABOUT 5 MILLION TO 7 MILLION IT BROUGHT INCLUDING SOTHEBY'S COMMISSION 682 MILLION OF 237 SPACE ARTIFACTS UP FOR SALE 226 WERE SOLD SOTHEBY'S CHARGES A BUYERS COMMISSION OF 15 ON THE FIRST 50000 AND 10 ON THE REMAINDER ALL PRICES NOTED INCLUDE SOTHEBY'S COMMISSION PROCEEDS OF THE SALE WENT TO THE COSMONAUTS THEIR FAMILIES OR HEIRS AND VARIOUS SOVIET STATE ENTITIES OTHER ITEMS UP FOR SALE INCLUDED THE TRAINING SUIT AND DRESS UNIFORM OF COSMONAUT YURI GAGARIN THE FIRST MAN IN SPACE THE TRAINING SUIT SOLD FOR 112500 AND HIS DRESS UNIFORM EXPECTED TO SELL FOR ABOUT 7000 WENT FOR 35500 THE TELEGRAM THAT NIKITA KHRUSHCHEV SENT MR GAGARIN WHICH READ YOUR GLORIOUS DEED WILL BE REMEMBERED THROUGH THE AGES AS AN EXAMPLE OF COURAGE BRAVERY AND HEROISM FOR THE SAKE OF MANKIND ESTIMATED TO SELL FOR 2000 TO 3000 BROUGHT 68500 ITEMS SUCH AS SLIDE RULES SPACE CAMERAS OR EATING UTENSILS WERE AVAILABLE FOR A FEW THOUSAND DOLLARS ONE ITEM WAS LITERALLY OUT OF THIS WORLD A LUNAR ROVER THAT'S STILL ON THE MOON AND WILL UNLESS THE BUYER IS ABLE TO RECOVER IT STAY THERE IT BROUGHT 68500 NONETHELESS SOME BUYERS BOYCOTTED THE SALE ARGUING THAT SOTHEBY'S IS EXPLOITING THE ECONOMIC DISTRESS OF THE FORMER SOVIET UNION AND SELLING OFF ITS NATIONAL PATRIMONY THE SUCCESS OF THIS SALE DOESN'T NECESSARILY PORTEND A BOOM IN SPACE SOUVENIERS A SIMILAR AUCTION OF ABOUT 2000 ARTIFACTS FROM THE US SPACE PROGRAM HELD BY LOS ANGELESBASED SUPERIOR GALLERIES LAST MONTH HAD WEAKER RESULTS 9312130133 931213 TELMEX WILL FILE PLAN BY END OF YEAR ON HOW TO MEET COMPETITION IN 1997 SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY MEXICAN TELECOMMUNICATIONS MONOPOLY TELEFONOS DE MEXICO SA WILL BY THE END OF THIS MONTH FILE WITH THE GOVERNMENT ITS FIRST COMPREHENSIVE PLAN ON HOW IT WILL MEET COMPETITION IN 1997 THE PLAN WILL OUTLINE HOW POTENTIAL LONGDISTANCE PROVIDERS WOULD ENTER THE MARKET AND INTERCONNECT WITH TELMEX'S INFRASTRUCTURE THE PLAN ALSO WILL RECOMMEND A TARIFF STRUCTURE FOR SUCH INTERCONNECTIONS UNDER A GOVERNMENT CONCESSION GRANTED WHEN TELMEX WAS PRIVATIZED IN DECEMBER 1990 THE PHONE COMPANY IS PROTECTED FROM INTERNATIONAL LONGDISTANCE COMPETITION UNTIL JAN 1 1997 TELMEX IS PROTECTED FROM NATIONAL LONGDISTANCE COMPETITION UNTIL 2026 AFTER THE FILING WITH THE MINISTRY OF COMMUNICATIONS AND TRANSPORTATION THE PLAN WILL BE SUBJECT TO A SIXMONTH PUBLICCOMMENT PERIOD AFTER THAT THE MINISTRY WILL ISSUE A REPORT OUTLINING THE RULES FOR COMPETITION INDUSTRY SOURCES SAID FRIDAY SOUTHWESTERN BELL CORP IS HELPING TELMEX DRAW UP THE PLAN SOUTHWESTERN BELL AND FRANCE TELECOM SA HOLD MAJOR STAKES IN TELMEX THROUGH THEIR PARTICIPATION IN THE BIDDING GROUP THAT WON THE COMPANY IN 1990 THE MINISTRY DECLINED TO COMMENT ON THE REPORTS IN AN OCT 27 CONFERENCE CALL TO INVESTORS TELMEX'S CHIEF FINANCIAL OFFICER ADOLFO CEREZO REMINDED THEM THAT TELMEX REMAINS PROTECTED FROM INTERNATIONAL DOMESTIC LONGDISTANCE COMPETITION UNTIL 1997 BUT WE KNOW THAT COMPETITORS WON'T WAIT UNTIL THEN TO ACT TO GET THEIR TEAMS IN PLACE HE SAID ONE POTENTIAL THREAT ON THE HORIZON IS BELL ATLANTIC CORP WHICH RECENTLY MADE THE FIRST OF TWO 520 MILLION PAYMENTS FOR WHAT WILL BE A 46 STAKE IN MEXICAN CELLULAR TELEPHONE CONCERN IUSACELL A UNIT OF GRUPO IUSA SA IUSACELL AND OTHERS HAVE SAID THEY WILL SEEK LONGDISTANCE CONCESSIONS WHEN THEY BECOME AVAILABLE OTHER POTENTIAL COMPETITORS INCLUDE THE LOCAL UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO WHICH SELLS EQUIPMENT TO TELMEX AND TELEINDSUTRIA ERICSSON SA THE LOCAL UNIT OF THE SWEDISH TELECOMMUNICATIONS CONCERN TELEFON AB LM ERICSSON ERICSSON SUPPLIES DIGITAL TELEPHONE LINES TO TELMEX 9312130132 931213 SUMITOMO HEAVY'S TANKER ORDER TOKYO JAPAN'S SUMITOMO HEAVY INDUSTRIES LTD SAID IT RECEIVED AN ORDER FOR A LARGE DOUBLEDHULLED CRUDE CARRIER ITS FIRST SUCH ORDER FOLLOWING STRICT SAFETY REGULATIONS ENACTED BY THE INTERNATIONAL MARITIME ORGANIZATION SUMITOMO WILL BUILD THE TANKER WHICH WILL BE 280000 GROSS TONS AND 160000 DEADWEIGHT TONS FOR THE ONASSIS GROUP OF GREECE DELIVERY IS SET FOR OCTOBER 1995 AMONG OTHER THINGS THE NEW REGULATIONS REQUIRE THAT TANKERS OVER 5000 DEADWEIGHT TONS ORDERED AFTER JULY 6 BE DOUBLE HULLED OR OFFER SIMILAR PROTECTION FROM OIL SPILLS 9312130131 931213 MARKETING & MEDIA SOUTHAM UNIT'S VENTURE TORONTO SOUTHAM INC SAID ITS SOUTHAM ELECTRONIC PUBLISHING UNIT PLANS TO FORM A JOINT VENTURE WITH DIALOG INFORMATION SERVICES A UNIT OF KNIGHTRIDDER INC TO MANAGE THE TWO PARTNERS' COMBINED COMMERCIAL ELECTRONIC PUBLISHING BUSINESS IN CANADA THE NEW COMPANY TO BE CALLED INFOMART DIALOG WILL BE THE CANADIAN DISTRIBUTOR FOR THE ELECTRONIC INFORMATION PRODUCTS PUBLISHED BY DIALOG AND THOSE PUBLISHED IN THE COMMERCIAL AND GOVERNMENT MARKETS BY SOUTHAM UNDER THE BRAND NAME INFOMART SOUTHAM SAID INFOMART SERVICES INCLUDE ONLINE DATABASES CDROM AND MEDIA MONITORING SOUTHAM IS A NEWSPAPER PUBLISHING CONCERN 9312130130 931213 ENTERPRISE SMALL CABLETV OPERATORS FACE AN UNCERTAIN FUTURE FEDERAL REGULATION BIG COMPETITORS SCARE OFF INVESTORS LENDERS BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL MANY SMALL CABLETELEVISION COMPANIES ARE IN DANGER OF BECOMING THE INFORMATION SUPERHIGHWAY'S FIRST ROAD KILLS THESE OPERATORS SAY THEY MUST SPEND HEAVILY ON SOPHISTICATED NEW TECHNOLOGY IN ORDER TO COMPETE WITH CABLE AND TELEPHONE GIANTS THOSE HUGE COMPANIES PLAN FIBEROPTIC NETWORKS CAPABLE OF DELIVERING MOVIES ON DEMAND VIDEO TELEPHONE SERVICE AND INTERACTIVE GAMES ALL SMALL OPERATORS ARE CONCERNED ABOUT SURVIVING THE CONVERGENCE OF TELEPHONE AND CABLE SAYS DAVID KINLEY PRESIDENT OF SUN COUNTRY CABLE INC A PLEASANTON CALIF SYSTEM WITH 10000 SUBSCRIBERS BUT JUST AS THEY FEEL MOUNTING PRESSURES TO UPGRADE THEIR MOSTLY RURAL SYSTEMS SMALL CABLE OPERATORS SAY THAT UNFAVORABLE FEDERAL REGULATION HAS FRIGHTENED OFF INVESTORS AND LENDERS THEY SAY AN EIGHTMONTHOLD RATE FREEZE HAS FURTHER CRIMPED THEIR CASH FLOW LAST FRIDAY THE 266 MEMBERS OF THE NEW SMALL CABLE BUSINESS ASSOCIATION FILED AN EMERGENCY PETITION SEEKING RELIEF FROM THE FEDERAL COMMUNICATIONS COMMISSION'S RATE FREEZE SMALL CABLE COMPANIES ARE IN LIMBO SAYS STEPHEN EFFROS PRESIDENT OF CABLE TELECOMMUNICATIONS ASSOCIATION A FAIRFAX VA TRADE GROUP THESE FOLKS ARE FACED WITH SUBSTANTIAL NEW COMPETITION NO WAY TO GET CAPITAL TO IMPROVE THEIR SYSTEMS AND SERIOUS REGULATORY DELAYS THE REGULATORY CLIMATE HAS STYMIED NEW INVESTMENT ADDS PAUL GROWALD GENERAL PARTNER OF SMALL CITIES CABLE TELEVISION LP A SHELBURNE VT OPERATOR OF TWO SMALL SYSTEMS WITH A TOTAL OF 5400 SUBSCRIBERS MR GROWALD SAYS HIS INVESTORS AREN'T INTERESTED IN PUTTING UP MORE MONEY AT THE MOMENT FOR NOW HE ADDS EXPANSION PLANS OF MOST SMALL CABLE COMPANIES LIKE HIS ARE VIRTUALLY DEAD SOME SMALL CABLESYSTEM OWNERS ARE GIVING UP ENTIRELY GORDON SITTON PRESIDENT OF ADVANCED MEDIA COMMUNICATIONS INC IN SAN ANTONIO SAYS HE UNSUCCESSFULLY TRIED FOR MORE THAN A YEAR TO RAISE 200000 IN ORDER TO ENHANCE HIS PAYPERVIEW SERVICE THE 500SUBSCRIBER SYSTEM WAS RIPE FOR EXPANSION WITH THE POTENTIAL TO GROW TO 6000 SUBSCRIBERS MR SITTON SAYS THE SYSTEM SERVED AN AFFLUENT COMMUNITY WHERE HOMES FETCH BETWEEN 500000 AND 1 MILLION EACH AND RESIDENTS WOULD PROBABLY BUY PREMIUM CABLE SERVICES BUT MR SITTON SAYS INVESTORS AND LENDERS WERE UNWILLING TO FUND THE EXPANSION PLAN BECAUSE OF A PENDING REVISION OF FEDERAL LAW GOVERNING SMALL CABLE SYSTEMS HE SAYS THAT PROBLEM AND OTHER FINANCIAL FRUSTRATIONS PROMPTED HIM TO SELL ADVANCED MEDIA'S FOUR SMALL CABLE SYSTEMS LAST MONTH TO KBLCOM INC A BIG CABLE OPERATOR OWNED BY HOUSTON INDUSTRIES INC IT WAS A REALLY LOUSY ENVIRONMENT TO BE IN AND I'M GLAD WE GOT OUT WHEN WE DID MR SITTON ADDS HE DECLINES TO DISCLOSE THE SALES PRICE FOR THE SYSTEMS I'VE NEVER SEEN SO MANY SMALL OPERATORS WANTING TO SELL OBSERVES PAT THOMPSON A VICE PRESIDENT AT DANIELS & ASSOCIATES A DENVER CABLESYSTEM BROKER SHE SAYS SHE HAS ARRANGED THE SALE OF NINE SMALL CABLE SYSTEMS SO FAR THIS YEAR AS MANY AS SHE SOLD IN THE PREVIOUS TWO YEARS COMBINED THERE ARE MANY SMALL OPERATORS WITH 500 TO 2000 SUBSCRIBERS WHO DON'T KNOW WHERE THEY FIT IN ANYMORE MS THOMPSON CONTINUES THEY DON'T SEE MANY CHANCES TO BORROW MONEY ADD SERVICES AND INCREASE REVENUES BUT OTHER SMALL CABLE OPERATORS WANT TO STAY IN THE BUSINESS AND THEY ARE PRESSING THEIR CASE VIGOROUSLY WITH THE FCC IF ITS RATEFREEZE RELIEF PETITION FAILS THE SMALL CABLE BUSINESS ASSOCIATION SAYS IT WILL INTENSIFY OTHER FCC LOBBYING EFFORTS THE COMMISSION HAS EXTENDED THE CABLERATE FREEZE TWICE THE LATEST FREEZE EXPIRES FEB 15 THE AGENCY FROZE RATES SO IT COULD WRITE RULES FOR THE 1992 CABLE ACT AND GIVE LOCAL AUTHORITIES AND CONSUMERS ENOUGH TIME TO UNDERSTAND THOSE RULES THE CABLE ACT WILL REGULATE CABLETV RATES UNTIL EFFECTIVE COMPETITION DEVELOPS SMALL CABLE OPERATORS ALSO ARE LOBBYING FOR LESS STRINGENT FEDERAL REGULATION OF THEIR BUSINESSES LAST JULY ABOUT 150 SUCH OPERATORS TRAVELED TO WASHINGTON TO LOBBY FOR REGULATORY REFORMS THEY SAY THEY WON SUPPORT FROM 200 MEMBERS OF CONGRESS IN AUGUST THE FCC SUSPENDED THE 500 PAGES OF RULES REGULATING SYSTEMS WITH 1000 OR FEWER SUBSCRIBERS WHILE IT REVISES REGULATION OF THESE SMALL OPERATORS THESE SYSTEMS REACH 21 MILLION HOUSEHOLDS OR 35 OF ALL US HOMES WIRED FOR CABLETV AMONG OTHER THINGS SMALL CABLE OPERATORS SAY THE FCC SHOULD SIMPLIFY PROCEDURES FOR APPROVING RATE BOOSTS AND LET THE OPERATORS PASS ALONG CONSTRUCTION COSTS TO SUBSCRIBERS SMALL OPERATORS SAY SUCH MEASURES ARE NEEDED BECAUSE THEY MUST BEAR HIGHER COSTS THAN BIGGER RIVALS SMALL CABLE CONCERNS SAY THEY DON'T GET THE SAME VOLUME DISCOUNTS THAT LARGE CABLE OPERATORS DO IN PURCHASING PROGRAMMING THESE SMALLER PLAYERS SAY THEY ALSO MUST CHARGE MORE FOR PROGRAMMING BECAUSE THEY SPREAD SUCH COSTS OVER A SMALL SUBSCRIBER BASE IN ADDITION THEY SAY THEIR SMALLER SUBSCRIBER BASE KEEPS THEM FROM ATTRACTING MUCH ADVERTISING ONE SOURCE OF UNREGULATED REVENUE THAT GIVES LARGE CABLE OPERATORS GREATER FINANCIAL FLEXIBILITY PATRICK DONOVAN AN FCC ACTING DEPUTY CHIEF OF CABLE SERVICES SAYS WE'RE INTERESTED IN SMALLSYSTEM ISSUES AND ARE ACTIVELY CONSIDERING THEM CABLEINDUSTRY CRITIC BRADLEY STILLMAN A LEGISLATIVE COUNSEL AT THE CONSUMER FEDERATION OF AMERICA AGREES THAT THERE'S ROOM TO TAKE CARE OF THE NEEDS OF LEGITIMATE SMALL BUSINESSES BUT HE QUESTIONS HOW DIRE CONDITIONS ARE FOR MANY OPERATORS OF SMALLER CABLE SYSTEMS ESPECIALLY THOSE OWNED BY MAMMOTH MULTISYSTEM OPERATORS SUCH AS TELECOMMUNICATIONS INC BEFORE THE RATE FREEZE WAS PUT INTO EFFECT SMALL OPERATORS WERE PERMITTED TO CHARGE WHATEVER THEY WANTED MR STILLMAN SAYS WE HAVE TO ASSUME THEY WERE CHARGING ENOUGH TO MAKE A PROFIT AND IMPROVE THEIR SYSTEMS MANY SELLING SYSTEMS STRATEGICALLY IMPORTANT TO BIG OPERATORS ARE MAKING A HEFTY PROFIT ON THE DEALS TOO BUT SMALL OPERATORS SUCH AS ELLEN BELISLE WHO OWNS 13 CABLE SYSTEMS WITH A TOTAL OF 7000 SUBSCRIBERS IN INDIANA AND SOUTH CAROLINA SAYS THAT HER AFFILIATE FEES AND OTHER COSTS HAVE RISEN DURING THE 10 MONTHS THAT HER RATES HAVE REMAINED THE SAME THOSE HIGHER COSTS PLUS A FINANCING SHORTAGE FORCED HER TO DELAY A SUMMER EXPANSION PLAN THAT WOULD HAVE INCREASED ONE SYSTEM'S SUBSCRIBER BASE BY A THIRD THAT SYSTEM NOW REACHES 325 HOUSEHOLDS THE NOTION OF RAISING ANOTHER 500000 TO UPGRADE HER SYSTEMS WITH FIBEROPTIC WIRE AND THUS JOIN THE INFORMATION SUPERHIGHWAY STRIKES MS BELISLE AS A PIPE DREAM WE WILL NOT BE IN A POSITION TO COMPETE SHE SAYS FUNDING AVAILABLE TO MY LARGER COMPETITORS TO BUY TECHNOLOGY IS SIMPLY NOT AVAILABLE TO ME 9312130129 931213 INTERNATIONAL DUTCH CONSUMER PRICES EASE AMSTERDAM CONSUMER PRICES IN THE NETHERLANDS SLIPPED 01 IN NOVEMBER FROM THE PREVIOUS MONTH AND WERE UP JUST 17 ON A YEARTOYEAR BASIS THE LATEST MONTHLY DATA SHOW THAT THE RECENT DISINFLATIONARY TREND IN THE NETHERLANDS EXTENDED INTO NOVEMBER INDEED THE RATE HAS BEEN DRIFTING LOWER SINCE HITTING 44 IN APRIL 1992 9312130128 931213 CORPORATE FOCUS BRUNSWICK PINS HOPES ON EXPANDING BOWLING BUSINESS ON A NEW TACK COMPANY WILL REDUCE EMPHASIS ON MARINE OPERATIONS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL FOR A COMPANY THAT SAYS IT SELLS FUN BRUNSWICK CORP HAS ENDURED A RAFT OF MISERY IN THREE OF THE PAST FIVE YEARS THE MAKER OF BOATS AND OTHER RECREATIONAL PRODUCTS HAS REPORTED BIG LOSSES AS THE BOATING MARKET FOUNDERED WORLDWIDE TO STAY AFLOAT BRUNSWICK CLOSED 19 FACTORIES AND TOOK A 100 MILLION WRITEOFF LAYOFFS SOARED AND ITS STOCK TANKED TODAY THE PLEASURECRAFT BUSINESS IS BEGINNING TO REVIVE IN THE US IN PART BECAUSE CONGRESS REPEALED A LUXURY TAX ON YACHTS BUT OVERSEAS BUSINESS REMAINS LOUSY AND WALL STREET ANALYSTS ARE MUTED IN THEIR RECOMMENDATIONS ON BOAT MANUFACTURERS' PROSPECTS NEAR TERM NEVERTHELESS BRUNSWICK'S MANAGEMENT ONCE AGAIN IS TALKING ABOUT FUN AND GAMES LIKE BOWLING WE SEE A HUGE OPPORTUNITY FOR OUR BOWLING BUSINESS IN THE BRAZILS AND THAILANDS OF THE WORLD SAYS JACK F REICHERT BRUNSWICK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ADDING THEY ARE STARVED FOR RECREATION IN MEXICO INDEED WHEREVER LOCAL ECONOMIES DEVELOP A SIZABLE MIDDLE CLASS ABLE TO AFFORD LEISURE SPORTS BRUNSWICK INTENDS TO MAKE BOWLING AN ATTRACTIVE OPTION AS IT HAS IN THIS COUNTRY FOR MORE THAN A CENTURY ONE WAY IT HOPES TO DO THAT IS TO HAVE BOWLING SANCTIONED FOR OLYMPICS COMPETITION THE COMPANY BUILT AND OPERATED A STATEOFTHEART LANES IN THE OLYMPIC VILLAGE IN BARCELONA LAST YEAR AS PART OF ITS LOBBYING EFFORT NOW IT'S WORKING ON ATLANTA 1996 SUMMER GAMES' OFFICIALS TO MAKE THE SPORT MORE AFFORDABLE FOR RURAL LOCATIONS BRUNSWICK IS DEVELOPING A CHEAPER STRING PINSETTER THAT TETHERS PINS TO THE RESETTING DEVICE BOWLING CENTERS ARE GOING UP IN SEVERAL COUNTRIES BRUNSWICK HAS CONTRACTS FOR FIVE IN CHINA IT ALREADY OPERATES A 24LANE ALLEY IN SHANGHAI AND WOULDBE OFFSHORE INVESTORS ARE URGING THE COMPANY TO BUILD MORE ASIA APPEARS TO BE AMONG THE GAME'S MOST PROMISING MARKETS JAPAN IS THE WORLD'S SECOND LARGEST BOWLING COUNTRY BEHIND THE US WITH SOUTH KOREA AND TAIWAN RAPIDLY PICKING UP THE SPORT BRUNSWICK SELLS NEARLY EVERYTHING NECESSARY TO PLAY FROM BALLS AND PINSETTERS TO THE FINISH THAT GOES ON LANES AND THE MARGINS ON BOWLING ARE MUCH MORE ATTRACTIVE THAN ON BOATING LAST YEAR MARINE OPERATIONS MARGINS WERE A MERE 28 WHILE THOSE ON BOWLING AND OTHER RECREATIONAL PRODUCTS WERE 12 MOREOVER ALTHOUGH THE RECREATION SEGMENT WHICH ALSO INCLUDES FISHING GEAR AND BILLIARD TABLES CONTRIBUTED JUST 27 OF BRUNSWICK'S 1992 SALES IT ACCOUNTED FOR 82 OF OPERATING EARNINGS BRUNSWICK REPORTED A NET LOSS OF 263 MILLION OR 28 CENTS A SHARE ON SALES OF 21 BILLION REFLECTING ACCOUNTING CHANGES AND A CHARGE FOR DISCONTINUED BUSINESSES BEFORE HE RETIRES IN TWO YEARS MR REICHERT IS DETERMINED TO GROW WHAT HE CALLS BRUNSWICK'S CONSUMABLES SIDEPRODUCTS THAT ARE USED UP EITHER IMMEDIATELY SUCH AS A GAME OF BOWLING OR WITHIN A YEAR OR SO SUCH AS A FISHING ROD HIS GOAL MAKE RECREATION 40 OF THE COMPANY'S REVENUE BASE THUS REDUCING ITS CHANCES OF BEING WATERLOGGED BY BOATING AGAIN STILL THE LAKE FOREST ILLBASED COMPANY'S SALES REMAIN PRIMARILY IN WATERSPORTS PRODUCTS WITH NEARLY 300 BOAT MODELS IN ITS INVENTORY RANGING FROM JETPROPELLED 13FOOT RUNABOUTS TO 65FOOT MOTOR YACHTS COSTING 15 MILLION BRUNSWICK IS ONE OF THE WORLD'S LARGEST BUILDERS OF FIBERGLASS AND ALUMINUM PLEASURE CRAFT ITS BRANDS INCLUDE SEA RAY BAYLINER MAXUM LAGUNA PROCRAFT ASTRO AND MONARK ITS ENGINE OPERATION MAKES EVERYTHING FROM 25HORSEPOWER FISHING MOTORS TO THOSE OF 1000HORSEPOWER FOR POWERBOAT RACING OUTBOARD BRANDS INCLUDE MERCURY MARINER AND FORCE WHILE ITS MERCRUISER IS A LEADING INBOARD STERN DRIVE THE COMPANY'S MERCURY DIVISION ALSO MAKES HIGHPERFORMANCE FOURCYCLE ALUMINUM ENGINES USED IN GENERAL MOTORS CORP'S ZR1 CORVETTES BRUNSWICK ENGINEERS ARE WORKING WITH CHRYSLER CORP TO DEVELOP A TWOCYCLE MARINE ENGINE WHOSE EMISSIONS WILL COMPLY WITH ANTICIPATED TOUGHER POLLUTIONCONTROL STANDARDS FROM THE ENVIRONMENTAL PROTECTION AGENCY BRUNSWICK'S CEO IS UPBEAT ABOUT THE BOAT BUSINESS STATESIDE EVERY INDICATOR THAT COULD AFFECT OUR MAJOR BUSINESS IS POINTING IN THE RIGHT DIRECTION CONSUMER CONFIDENCE IS UP OIL PRICES ARE DOWN AND INTEREST RATES ARE DOWN MR REICHERT SAYS WE ARE SEEING VERY POSITIVE SIGNS DOMESTICALLY CITING A 50 INCREASE IN ORDERS AT A RECENT INHOUSE CRUISERANDYACHTS SHOW IN FORT LAUDERDALE FLA BUT WHILE BRUNSWICK SAYS ITS US MARINE BUSINESS IS UP ABOUT 10 THIS YEAR EUROPEAN SALES ARE DOWN PERHAPS 20 ILLUSTRATIVE OF THAT ARCHRIVAL OUTBOARD MARINE CORP RECENTLY REPORTED A 282 MILLION FISCAL FOURTHQUARTER LOSS INCLUDING A BIG RESTRUCTURING CHARGE TO COVER PLANT CLOSINGS IN CANADA AND EUROPE TO STIMULATE THE OVERSEAS MARKET BRUNSWICK IS CONSIDERING DESIGNING BOATS FOR INDIGENOUS USE SUCH AS WATER TAXIS FOR EAST ASIAN ARCHIPELAGOES WE ALREADY SELL MORE BOATS INTERNATIONALLY THAN ANYBODY BUT IT'S NOTHING MR REICHERT SAYS MR REICHERT PUT BRUNSWICK INTO BOATS IN THE MID1980S AS THE MARINE INDUSTRY MOVED INCREASINGLY TOWARD WHAT IT CALLS PACKAGING PUTTING A MOTOR ON A HULL AND BOTH ON A TRAILER BEFORE SELLING IT BUT IT WAS COSTLY ACQUISITIONS COST ABOUT 875 MILLION CONGRESS THREW SOME FLOTSAM INTO DOMESTIC SALES THREE YEARS AGO WHEN IT APPROVED A 10 LUXURY TAX ON BOATS COSTING MORE THAN 100000 BUT MANY WOULDBE BUYERS THOUGHT THE TAX APPLIED TO ALL BOATS A BRUNSWICK SPOKESMAN SAYS TO BOLSTER YACHT SALES THE COMPANY AND ITS DEALERS PAID THE TAX STILL SALES PLUMMETED NOW THAT THE TAX IS OFF PROFIT MARGINS ON BIGTICKET BOATS WILL RISE AS THE DOMESTIC ECONOMY PICKS UP BRUNSWICK ALSO IS BULLISH ABOUT OUTBOARD MOTOR SALES ANTICIPATING A BUYING BOOMLET AMONG FISHERMEN AND WATERSKIERS IT RECENTLY ADDED A SECOND SHIFT AT ITS FOND DU LAC WIS ENGINE PLANT THE COMPANY EMPLOYS ABOUT 18500 WORLDWIDE WITH MORE THAN 100 MILLION IN CASH AND A SHRINKING DEBT ON ITS BALANCE SHEET BRUNSWICK SAYS IT'S SHOPPING FOR ACQUISITIONS PARTICULARLY TO FIND SOME MORE CONSUMABLES BUT THE EXERCISE IS SOMEWHAT FRUSTRATING MR REICHERT ADMITS WE'RE IN BETTER BUSINESSES THAN THE BUSINESSES WE'RE LOOKING AT HE SAYS BRUNSWICK ALSO IS WAITING TO HEAR BACK FROM WHAT IT CALLS A COUPLE OF SERIOUS PROSPECTS WHO MAY BID ON ITS TECHNICAL DIVISION A DISCONTINUED OPERATION THAT INCLUDES A VARIETY OF DEFENSERELATED PRODUCTS RANGING FROM DECOY AIRCRAFT TO CHEMICALGAS DETECTORS THAT BUSINESS HAD SALES OF 1683 MILLION AND A PRETAX LOSS OF 29 MILLION LAST YEAR 9312130127 931213 INTERNATIONAL MEXICO'S STOCK EXCHANGE SOARS AMID DARKENING CLOUDS ON ECONOMIC HORIZON BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY ECONOMIC NUMBERS HERE ARE RAISING TROUBLING QUESTIONS ABOUT THE WHEEZING ECONOMY AND WHETHER THE MEXICAN STOCK EXCHANGE CAN SUSTAIN ITS RECENT SURGE EVEN AS MEXICO'S STOCK EXCHANGE ROARED TO NEW HEIGHTS MEXICO'S ECONOMY ACTUALLY CONTRACTED 12 IN THE THIRD QUARTER THE ECONOMIC CONTRACTION IS A FIRST FOR THE ADMINISTRATION OF PRESIDENT CARLOS SALINAS DE GORTARI AND REPRESENTS THE WORST ECONOMIC PERFORMANCE SINCE 1986 ONE OF THE DARKEST YEARS OF THE MEXICAN DEBT CRISIS THE FOURTH QUARTER ISN'T EXPECTED TO SHOW MUCH IMPROVEMENT EITHER ANALYSTS SAY SOME ECONOMISTS SAY A RECOVERY COULD COME AS SOON AS THE FIRST QUARTER OF 1994 OTHERS CAUTION THOUGH THAT THE WAIT COULD LAST UNTIL THE SECOND HALF OF 1994 THE GOVERNMENT OFFICIALLY SAYS THE ECONOMY WILL GROW 3 NEXT YEAR THE FIGURES IN THE THIRD QUARTER ARE APPALLING SAYS JORGE SUAREZ VELEZ A MANAGING DIRECTOR AT AFIN INTERNATIONAL SECURITIES IN NEW YORK AND THE FOURTH QUARTER IS GOING TO BE TRAUMATIC AS WELL WE DON'T SEE ANY SIGNALS OF THE ECONOMY EVEN BEING CLOSE TO TAKING OFF THE QUARTERLY RESULTS WERE LARGELY HIDDEN IN AN ECONOMIC REPORT BY THE GOVERNMENT A WEEK AGO RATHER THAN USING ITS STANDARD PRESENTATION THE REPORT BY THE TREASURY MINISTRY ONLY GAVE FIGURES FOR NINE MONTHS WHICH SHOWED ECONOMIC GROWTH TO BE 05 ECONOMISTS HAVE BEEN EXAMINING THE REPORT EVER SINCE UNCOVERING SUCH TROUBLING NUGGETS AS THE CONTRACTION AND WHAT THEY DESCRIBE AS PARTICULARLY VEXING TROUBLE IN THE MANUFACTURING SECTOR THEY SAY OUTPUT IN MANUFACTURING FELL 5 IN THE THIRD QUARTER WHILE EMPLOYMENT DROPPED 6 SOME ECONOMISTS ALSO SAY THAT BANKRUPTCIES ARE WAY UP ALTHOUGH THEY SAID GOVERNMENT FIGURES ARE OPAQUE ENOUGH THAT IT'S HARD TO FIGURE OUT JUST HOW MUCH ALL OF THIS RAISES THE QUESTION OF WHETHER THE RUNNING OF THE BULLS TO THE BOLSA AS THE MEXICAN STOCK EXCHANGE IS KNOWN WILL CONTINUE THE LEADING INDEX OF THE BOLSA IS UP NEARLY 40 THIS YEAR THUS THE BOLSA IS NO LONGER SO CHEAP IN COMPARISON WITH THE US STOCK MARKETS EVEN THOUGH THE US ECONOMY IS HEALTHIER ANALYSTS ATTRIBUTE THE RISE PARTLY TO HOPES OF IMPROVED EARNINGS BECAUSE OF A ONEPERCENTAGEPOINT CUT IN THE CORPORATE TAX AND DECREASES IN ENERGY PRICES FOR INDUSTRIAL USERS ROGELIO RAMIREZ DE LA O A PRIVATE ECONOMIST HERE BELIEVES THE STOCK MARKET IS SIX MONTHS AHEAD OF THE CURRENT SITUATION IT HAS ANTICIPATED A BRISK RECOVERY FOR HIS PART DR RAMIREZ TEMPERS HIS ENTHUSIASM AND PREDICTS 1994 ECONOMIC GROWTH OF 2 BUT ANALYSTS ALSO SAY THAT SOME OF THE RISE IN THE STOCK MARKET COMES FROM GIDDINESS ABOUT THE PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT PARTICULARLY AMONG FOREIGNERS AND ANALYSTS CAUTION THAT INVESTORS MAY BE GETTING CARRIED AWAY ALLOWING THEMSELVES TO FORGET THAT THE BENEFITS OF NAFTA MAY TAKE YEARS TO APPEAR AND THAT MANY COMPANIES WILL GO THROUGH CONSIDERABLE PAIN IN THE MEANTIME AS THEY RESTRUCTURE TO MEET US COMPETITION THE MAJOR PROBLEM ESPECIALLY FOR SMALL AND MEDIUMSIZED BUSINESSES IS HIGH INTEREST RATES AND THAT PROBLEM WILL CONTINUE FOR SOME TIME ALTHOUGH THE GOVERNMENT HAS TRIED TO CRACK THE BANKING CARTEL AND CHEAPEN CREDIT RATES HAVE ONLY FALLEN TO THE 19 TO 25 RANGE FOR THOSE WITH GOOD CREDIT INFLATION HAS FALLEN TO AROUND 8 ANNUALLY SO INFLATIONADJUSTED INTEREST RATES ARE 11 TO 17 SEVERAL TIMES WHAT THEY ARE IN THE US POLITICALLY THE TROUBLE COULD BE EXPECTED TO CAUSE PROBLEMS FOR RULINGPARTY PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO UNLESS THE CURRENT ADMINISTRATION CAN GET THE ECONOMY GOING AGAIN BY THE TIME VOTERS HEAD TO THE POLLS IN AUGUST BUT MANY MEXICANS STILL FEEL SECURE ABOUT THEIR FUTURE UNDER NAFTA IN THE MEXICAN BORDER STATE OF CHIHUAHUA SERGIO BERMUDEZ A BIG INDUSTRIALPARK DEVELOPER SAYS THE BENEFITS OF NAFTA CAN ALREADY BE SEEN IN HIS BUSINESS IF YOU SEE THE ECONOMIC SITUATION AS A FRAME IN A MOVIE IT LOOKS BAD MR BERMUDEZ SAID BUT IF YOU SEE THE WHOLE PICTURE IT'LL HAVE A GOOD ENDING 9312130126 931213 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DUAL DRILLING CO AN OFFERING OF 100 MILLION OF SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH & CO GROUND ROUND RESTAURANTS INC AN OFFERING OF ABOUT 35 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES KAISER ALUMINUM CORP A SHELF OFFERING FOR UP TO 75 MILLION OF PREFERRED STOCK AND DEPOSITARY SHARES REPRESENTING PREFERRED STOCK 9312130125 931213 SALES OF NEW SECURITIES HIT THE TRILLIONDOLLAR MARK NEW YORK SALES OF NEW STOCKS AND BONDS IN THE YEAR TO DATE REACHED 1 TRILLION FRIDAY ACCORDING TO SECURITIES DATA CO SALES OF NEW STOCKS AND BONDS ACCELERATED SHARPLY IN THE PAST THREE YEARS AS FALLING INTEREST RATES AND A RISING STOCK MARKET PROMPTED A WAVE OF DEBT REFINANCINGS AND INITIAL PUBLIC OFFERINGS OF STOCK UNDERWRITING VOLUME WAS STEADY DURING THE LATE '80S AVERAGING ABOUT 300 BILLION ANNUALLY FOR 19861990 BUT AVERAGE ANNUAL VOLUME ALMOST DOUBLED IN 1991 TO 5897 BILLION AND SPURTED AGAIN IN 1992 REACHING 8561 BILLION DEBT OFFERINGS CORPORATE BONDS MUNICIPAL BONDS AGENCY SECURITIES AND MORTGAGEBACKED OR ASSETBACKED SECURITIES ACCOUNTED FOR THE MAJORITY OF THE UNDERWRITING VOLUME THIS YEAR 5207 DEBT OFFERINGS TOTALING 9082 BILLION HAVE COME TO MARKET 9312130124 931213 MULTIMEDIA COUNTERFEITING ALLEGED IN CALIFORNIA CASE SAN JOSE CALIF COMPUTER CRIME HAS ENTERED THE MULTIMEDIA AGE A FEDERAL GRAND JURY HERE INDICTED CLARE WAIOI SHAM A 29YEAROLD SAN JOSE RESIDENT ON FELONY CHARGES OF VIOLATING TRADEMARK AND IMPORT LAWS MS SHAM'S ALLEGED CRIMES INCLUDE IMPORTING COUNTERFEIT CDROMS THE CASE IS BELIEVED TO BE THE FIRST CHARGING CRIMES INVOLVING CDROMS A PRINCIPAL COMPONENT OF THE NEW MULTIMEDIA WAVE CDROMS ENABLE PERSONAL COMPUTER USERS TO RUN A MULTITUDE OF INFORMATIONAL AND ENTERTAINMENT SOFTWARE PROGRAMS INCORPORATING DATA VOICE AND VIDEO MICHAEL J YAMAGUCHI US ATTORNEY FOR THE NORTHERN DISTRICT OF CALIFORNIA SAID MS SHAM'S PHONY CDROMS AND ASSOCIATED FAKE MATERIALS WERE COPIES OF PRODUCTS MADE BY SOFTWARE TOOLWORKS INC NOVATO CALIF A BIG CDROM PRODUCER MR YAMAGUCHI CHARGED THAT THE ALLEGEDLY BOGUS PRODUCTS ALSO VIOLATED TRADEMARKS RELATED TO THE WORK OF GEORGE LUCAS WHO GAINED FAME WITH THE STAR WARS MOVIES AND WHOSE COMPANY IS A LEADER IN COMPUTER ANIMATION AND SPECIAL EFFECTS MR YAMAGUCHI SAID THE INDICTMENT REFLECTS A NEW NATIONWIDE FOCUS ON SOFTWARE PIRACY AND OTHER HIGHTECH CRIMES US COMPUTER FIRMS SAY SUCH CRIMES ARE COSTING THEM MORE THAN 1 BILLION A YEAR MAINLY BECAUSE OF SALES THEY LOSE TO TO CUTRATE COUNTERFEIT PRODUCTS 9312130123 931213 INTERNATIONAL JAPAN REPORTS ECONOMY GREW IN LATEST PERIOD DESPITE INCREASE IN GDP ANALYSTS SAY DOWNTURN OF NATION ISN'T OVER BY MICHAEL WILLIAMS AND JATHON SAPSFORD STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S REPORT THAT ITS ECONOMY SPURTED AHEAD IN THE LATEST QUARTER TOOK THE NATION'S BUSINESS WORLD BY SURPRISE BUT DOESN'T SEEM TO HAVE CHANGED THE GENERALLY PESSIMISTIC OUTLOOK OBSERVERS SAY MOST SIGNS STILL INDICATE THAT JAPAN'S ECONOMY WILL MERELY INCH AHEAD IN 1994 THE ECONOMIC PLANNING AGENCY REPORTED FRIDAY THAT THE NATION'S GROSS DOMESTIC PRODUCT GREW IN THE JULYTOSEPTEMBER QUARTER AT AN ANNUALIZED RATE OF 20 BOOSTED BY STRONG HOUSING INVESTMENT AND AN UNEXPECTED GAIN IN PRIVATE CONSUMPTION THE REPORT THREW ECONOMISTS FOR A LOOP MOST HAD FORECAST A CONTRACTION OF 1 OR MORE STILL ANALYSTS SAID THE NUMBERS DON'T MEAN THAT JAPAN'S DOWNTURN IS OVER THE BANK OF JAPAN OFFERED SOLID SUPPORT FOR THAT ARGUMENT FRIDAY WHEN IT REPORTED THAT BUSINESS SENTIMENT AT JAPAN'S LEADING COMPANIES REACHED ITS LOWEST LEVEL IN TWO DECADES THE CENTRAL BANK'S WIDELY WATCHED TANKAN SURVEY SHOWED THAT COMPANIES THINK THEY HAVE BLOATED INVENTORIES AND TOO MANY WORKERS INDICATING THAT THEY WILL CONTINUE TO SLASH OUTPUT AND JOBS THE PROBLEMS HAVE NOT GONE AWAY SAID JESPER KOLL ECONOMIST AT SG WARBURG SECURITIES JAPAN INC MR KOLL AND MANY OTHER TOKYO ECONOMISTS SAID THE GDP FIGURE WOULDN'T PROMPT THEM TO RAISE THEIR GROWTH FORECASTS ONE CONSENSUS ESTIMATE PEGS GROWTH AT 05 IN THE FISCAL YEAR THAT WILL START APRIL 1 OVER THE WEEKEND JAPANESE OPINION LEADERS STRESSED THE DARK SIDE OF FRIDAY'S REPORTS THE NIHON KEIZAI SHIMBUN DECLARED IN AN EDITORIAL THAT THE RECESSIONARY MOOD HAS FURTHER WORSENED AND CALLED ON THE GOVERNMENT TO UNVEIL ADDITIONAL ECONOMICSTIMULUS MEASURES PROMPTLY THE QUARTER'S STRONG GROWTH SHOULD BE SEEN AS A BLIP AS THE ECONOMY SEARCHES FOR A SECOND BOTTOM THE MAJOR BUSINESS DAILY SAID PRIME MINISTER MORIHIRO HOSOKAWA'S GOVERNMENT IS WEIGHING NEW MEASURES TO SPUR DEMAND INCLUDING A TAX CUT OF AT LEAST 5 TRILLION YEN 46 BILLION BUT ACTION HAS BEEN HELD UP BY PARLIAMENTARY WRANGLING OVER A NUMBER OF ISSUES INCLUDING JAPAN'S IMMINENT AND CONTROVERSIAL MOVE TO OPEN UP ITS RICE MARKET THAT GRIDLOCK HAS FURTHER SPOOKED JAPANESE BUSINESSES AND STOCK INVESTORS WHO HAVE RATCHETED UP THEIR DEMANDS FOR GOVERNMENT AID FOR THE ECONOMY MANY TOP EXECUTIVES AND ECONOMISTS ARE CLAMORING FOR A 10 TRILLION YEN TAX CUT AN OFFICIAL AT JAPAN'S TIGHTFISTED FINANCE MINISTRY WHICH HAS SOUGHT TO LIMIT THE SCALE OF THE STIMULUS SEIZED ON FRIDAY'S NEWS AS EVIDENCE THAT THE VARIOUS MEASURES TAKEN SO FAR TO STIMULATE THE ECONOMY ARE WORKING ONE OF THE BRIGHTEST SPOTS IN THE LATEST QUARTER WAS THE HOUSING SECTOR WHICH HAS BEEN BOLSTERED BY CHEAP GOVERNMENT LOANS HOUSING INVESTMENT SURGED AT AN ANNUAL RATE OF 41 FROM THE PREVIOUS QUARTER BUT WHILE THE GDP NEWS MIGHT HELP THE MINISTRY RESIST A BIGGER TAX CUT IT SEEMS UNLIKELY TO DERAIL THE PACKAGE SINCE THE LATEST QUARTER ENDED JAPAN HAS BEEN BUFFETED BY BAD NEWS RISING JOBLESSNESS GROWING STOCKS OF UNSOLD GOODS FALLING INDUSTRIAL OUTPUT AND THE BEARISH TANKAN SURVEY SUGGESTS THAT MORE IS ON THE WAY MOST ANALYSTS SAY THE ECONOMY IS LIKELY TO SHRINK IN THE CURRENT QUARTER WHY WERE ECONOMISTS' GROWTH FORECASTS SO WIDE OF THE MARK ONE EXPLANATION IS THAT ANALYSTS SIMPLY GOT CARRIED AWAY PEOPLE HAVE BEEN TRYING TO OUTDO EACH OTHER BY BEING BEARISH LATELY SAID CHRIS CALDERWOOD AN ECONOMIST AT BARCLAY'S DE ZOETE WEDD SECURITIES SOME ECONOMISTS CAST DOUBT ON THE VALIDITY OF THE GDP NUMBER BECAUSE IT DIVERGED SO DRAMATICALLY FROM OTHER INDICATORS RELEASED DURING THE QUARTER MONTHLY REPORTS OF FALLING RETAIL SALES FOR INSTANCE HAD LED ECONOMISTS TO BELIEVE THAT CONSUMER SPENDING WAS PLUNGING BUT THE GROWTH REPORT MAY MEAN THAT SOME TRADITIONAL MEASURES OF ECONOMIC ACTIVITY ARE GROWING LESS USEFUL AS JAPAN'S ECONOMY RESTRUCTURES THE MONTHLY RETAIL FIGURES FOCUS ON ACTIVITY AT HIGHPRICED DEPARTMENT STORES AND OTHER TRADITIONAL LARGE OUTLETS BUT DON'T FACTOR IN THE BOOM IN SPENDING AT JAPAN'S NEW DISCOUNT STORES THE RISE OF BARGAIN HUNTING HAS BEEN ONE OF THE MOST REMARKABLE RESULTS OF THIS DOWNTURN NOW IN ITS THIRD YEAR 9312130122 931213 TECHNOLOGY CELLULARRADIATION STUDY FINDS LITTLE HEALTH THREAT WASHINGTON RADIATION FROM CELLULAR TELEPHONES DOESN'T POSE A SIGNIFICANT HEALTH THREAT ACCORDING TO NEW SCIENTIFIC FINDINGS RESEARCH BY UNIVERSITY OF UTAH PROF OM GANDHI FOUND THAT THE EXPOSURE TO RADIATION FROM CELLULAR PHONES TO BE FOUR TO FIVE TIMES LOWER THAN LEVELS CONSIDERED SAFE BY THE AMERICAN NATIONAL STANDARDS INSTITUTE AND THE INSTITUTE OF ELECTRIC AND ELECTRONICS ENGINEERS DR GANDHI CHAIRMAN OF THE SCHOOL'S DEPARTMENT OF ELECTRICAL ENGINEERING TESTED 10 PHONES MADE BY FOUR MANUFACTURERS MOST ELECTROMAGNETIC ABSORPTION OCCURRED IN THE UPPER PART OF THE EAR CONSISTING MOSTLY OF CARTILAGE AND THE SKIN BEHIND IT WITH A RAPIDLY DIMINISHING RADIOFREQUENCY ABSORPTION FOR THE NEARBY TISSUES IN THE HEAD DR GANDHI SAID IN A STATEMENT HE PRESENTED HIS FINDINGS FRIDAY AT A MEETING OF THE EUROPEAN BIOELECTROMAGNETICS ASSOCIATION THE STUDY WAS SPONSORED BY THE NATIONAL INSTITUTE OF HEALTH'S NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES ADDTIONAL FUNDS WERE SUPPLIED BY MCCAW CELLULAR COMMUNICATIONS INC A MAJOR US PROVIDER OF CELLULAR PHONE SERVICE 9312130121 931213 NYNEX WEIGHS PLANS TO CUT 22000 JOBS OVER 3 YEARS AS IT BRACES FOR NEW RIVALS BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NYNEX CORP IS WEIGHING PLANS TO CUT 22000 JOBS OR ABOUT ONETHIRD OF ITS WORK FORCE OVER THE NEXT THREE YEARS AS IT BRACES FOR NEW RIVALS' AIMING AT THE COVETED NEW YORK MARKET ALTHOUGH NYNEX HAS ALREADY SHED MORE THAN 14000 WORKERS SINCE 1990 IT CONTINUES THE FATTEST PAYROLL AMONG THE SEVEN BABY BELLS THE COMPANY SAID IT MUST CUT COSTS BY AN ADDITIONAL 30 THROUGH LAYOFFS EARLY RETIREMENT ATTRITION AND OTHER MEANS THEY'RE GOING TO HAVE TO PARE DOWN AND REDUCE OVERHEAD EVEN FURTHER TO ENTER THE BRAVE NEW WORLD SAID MARION BOUCHER OF DONALDSON LUFKIN & JENRETTE INDEED ANALYSTS SAID NYNEX'S EXPECTED CUTS COULD PORTEND A NEW WAVE OF CUTBACKS AT ALL THE BELL COMPANIES COLLECTIVELY THEY HAVE SLASHED THEIR WORK FORCES ABOUT 50 SINCE THE BREAKUP OF THE OLD AMERICAN TELEPHONE & TELEGRAPH CO A DECADE AGO JEFFREY MILLER A PARTNER AT ARTHUR ANDERSEN CONSULTING PREDICTED THE BELL COMPANIES WILL BE FORCED TO REDUCE THEIR REMAINING PAYROLLS IN SOME AREAS AS MUCH AS 50 AGAIN OVER THE NEXT DECADE ALL SEVEN BABY BELLS WHICH HAVE ENJOYED MONOPOLYCONTROL OVER THEIR RESPECTIVE MARKETS SINCE THEY WERE FORMED A DECADE AGO FACE A RAFT OF NEW COMPETITION PARTICULARLY FROM EACH OTHER MOST OF THE BELLS ARE TEAMING UP WITH CABLE COMPANIES OUTSIDE THEIR REGIONS EVENTUALLY TO OFFER PHONE SERVICE ON CABLE LINES IN RIVAL TERRITORIES HALF A DOZEN SUCH EFFORTS ARE PENDING IN THE NEW YORK MARKET ALONE THREATENING NYNEX'S LOCK ON LOCAL PHONE SERVICE IF YOU LOOK AT ANY REGIONAL BELL RIGHT NOW THEY'RE IN A SITUATION WHERE THEY HAVE TO BE MORE EFFECTIVE SAID FREDERIC SALERNO NYNEX'S VICE CHAIRMAN HOWEVER IMPOSING DRACONIAN CUTBACKS IN THE BELL SYSTEM WHICH FOR DECADES HAD BEEN A SAFE HARBOR FOR EMPLOYMENT IS TURNING INTO A DELICATE TASK NYNEX WHEN ASKED ON FRIDAY ABOUT A REPORT IN THE NEW YORK POST THAT IT IS PLANNING TO CUT 22000 PEOPLE BY CHRISTMAS INITIALLY DECLINED COMMENT LATE IN THE DAY THE COMPANY ISSUED A NEWS RELEASE SAYING MEDIA REPORTS TODAY STATING THAT NYNEX EMPLOYEES WILL BE LAID OFF THIS YEAR ARE DEAD WRONG A NYNEX SPOKESWOMAN ACKNOWLEDGED HOWEVER THAT THE DENIAL DIDN'T RULE OUT THE POSSIBILITY THAT SUCH CUTBACKS COULD BEGIN NEXT YEAR PRIVATELY NYNEX OFFICIALS HAVE TOLD SOME WALL STREET ANALYSTS THAT THE COMPANY COULD SHED ONETHIRD OF ITS WORK FORCE WITHOUT HURTING CUSTOMER SERVICE NYNEX IS CLEARLY THE LEAST EFFICIENT OF THE SEVEN REGIONALS SAID STEVE YANIS A TELECOMMUNICATIONS ANALYST WITH KIDDER PEABODY & CO IN NEW YORK BY ONE MEASURE OF EFFICIENCY EMPLOYEES PER 10000 PHONE LINES NYNEX IS THE WORST OF THE BABY BELLS IT HAS 45 WORKERS VS AN INDUSTRY AVERAGE OF 40 BELLSOUTH CORP THE ATLANTABASED BELL ALSO FARES POORLY WITH 44 BELL ATLANTIC CORP CONSIDERED BY WALL STREET TO BE AMONG THE BESTMANAGED OF THE BELL BUNCH HAS 35 EMPLOYEES FOR EVERY 10000 LINES DURING THE PAST TWO YEARS IT SHED 9000 WORKERS OR ABOUT 11 OF ITS WORK FORCE YET EVEN BELL ATLANTIC IS SEEKING WAYS TO TRIM ITS COSTS FURTHER FOR EXAMPLE THE COMPANY IS WORKING TO LET CUSTOMERS ADD OR SUBTRACT NEW SERVICES BY USING THEIR TELEPHONE KEYPAD WITHOUT HAVING TO GO THROUGH CUSTOMERSERVICE PERSONNEL 9312130120 931213 POLITICS & POLICY AIDE TO '88 HAIG CAMPAIGN IS CHARGED WITH FRAUD BOSTON THE TREASURER OF ALEXANDER HAIG'S 1988 PRESIDENTIAL CAMPAIGN WAS CHARGED WITH MAKING ILLEGAL CAMPAIGN CONTRIBUTIONS AND OBTAINING 538000 IN FEDERAL MATCHING FUNDS THROUGH FRAUD THE TREASURER DOMINIC J SARACENO A 70YEAROLD REALESTATE DEVELOPER FROM NEWTON MASS WAS ACCUSED BY FEDERAL PROSECUTORS OF SOLICITING MORE THAN 150000 IN CAMPAIGN CONTRIBUTIONS FOR THE HAIG CAMPAIGN SO THAT IT WOULD QUALIFY FOR MATCHING FUNDS AND THEN REIMBURSING THE DONORS DONALD A COOKE JR 50 A BUILDING CONTRACTOR FROM BUZZARDS BAY MASS ALSO WAS CHARGED WITH MAKING ILLEGAL CONTRIBUTIONS AND PARTICIPATING IN THE ALLEGED CONSPIRACY US ATTORNEY DONALD K STERN CALLED THE ALLEGED INCIDENT THE LARGEST FRAUD AGAINST THE FEDERAL MATCHING FUND PROGRAM IN HISTORY MR HAIG WHO WAS NOT NAMED IN THE INDICTMENT IS ONE OF THE PEOPLE WHO WOULD BE LIABLE FOR REIMBURSING THE GOVERNMENT FOR THE MATCHING FUNDS SAID JOE SAVAGE HEAD OF THE US ATTORNEY'S PUBLICCORRUPTION UNIT HERE MR HAIG WAS PRESIDENT REAGAN'S FIRST SECRETARY OF STATE MR SARACENO DENIED ALL THE CHARGES THROUGH HIS ATTORNEY MR COOKE COULD NOT BE REACHED TO COMMENT 9312130119 931213 THE PLOT THICKENS WHO GETS THE BLAME FOR PARAMOUNT GAFFES BIG CAST OF CHARACTERS DAVIS DIDN'T GIVE DIRECTORS SOME IMPORTANT FACTS AND THEY NEVER ASKED DECISIONS MADE IN THE DARK BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN A STUFFY WINDOWLESS CONFERENCE ROOM ON A BLEAK NOVEMBER AFTERNOON PARAMOUNT COMMUNICATIONS INC'S BOARD OF DIRECTORS FOUND ITSELF IN THE DARK AGAIN COATS OFF AND TIES LOOSENED DIRECTORS HAD GATHERED AT THIS HASTILY CONVENED MEETING AT PARAMOUNT HEADQUARTERS TO EVALUATE COMPETING BIDS FOR THE COMPANY THEY KNEW FULL WELL THAT THEIR STRONGWILLED CHAIRMAN MARTIN S DAVIS WAS DETERMINED TO GO WITH A FRIENDLY VIACOM INC OFFER EVEN THOUGH HOMESHOPPING GIANT QVC NETWORK INC HAD JUST SWEETENED A HOSTILE BID THAT NOW WAS VALUED AT 12 BILLION MORE MINCING NO WORDS MR DAVIS ATTACKED THE QVC BID AS CONTAINING TOO MANY CONDITIONS THEN PARAMOUNT'S INVESTMENT ADVISERS FROM LAZARD FRERES & CO WEIGHED IN WITH THEIR WRITTEN OPINION THAT VIACOM'S 85ASHARE OFFER WAS FAIR DIRECTOR GEORGE WEISSMAN THE FORMER PHILIP MORRIS COS CHAIRMAN WHO HAS KNOWN MR DAVIS SINCE THE PARAMOUNT CHIEF WAS AN OFFICE BOY AT THE OLD SAMUEL GOLDWYN CO RAISED HIS HAND WHY HE ASKED HADN'T LAZARD EVALUATED QVC'S 90ASHARE BID TOO LAZARD'S FELIX ROHATYN ACCORDING TO COURT RECORDS HAD THIS REPLY WE HAVEN'T BEEN ASKED AND WITH THAT THE BOARD PROMPTLY DROPPED THE ISSUE QVC'S BID WASN'T TO BE TAKEN SERIOUSLY THE NOVEMBER INCIDENT WASN'T THE ONLY TIME DURING THE CONTINUING 10 BILLION TAKEOVER FIGHT THAT PARAMOUNT DIRECTORS WEREN'T GIVEN THE FULL STORY IN MEMOS AND STATEMENTS FILED IN A SUIT QVC BROUGHT AGAINST PARAMOUNT IN DELAWARE CHANCERY COURT A PICTURE EMERGES OF A CHIEF EXECUTIVE SO DETERMINED TO WARD OFF QVC'S OVERTURES THAT HE SOMETIMES WITHHELD CRUCIAL INFORMATION ON NUMEROUS OCCASIONS THE BOARD WASN'T GIVEN A CHANCE TO WEIGH INFORMATION THAT WOULD HAVE PUT PREFERRED SUITOR VIACOM IN AN UNFLATTERING LIGHT OR MADE ARCHFOE QVC'S BID LOOK MORE ATTRACTIVE MR DAVIS HAD A WILLING PARTNER IN THIS EXERCISE IN DENIAL THE BOARD ITSELF WHICH AS MR DAVIS HIMSELF PUT IT AT ONE POINT FOLLOWED HIM IN LOCKSTEP TOWARD THE VIACOM DEAL FOR THE MOST PART DIRECTORS DIDN'T QUESTION MR DAVIS'S REJECTION OF THE HIGHER QVC BID COURT PAPERS AND INTERVIEWS SHOW AND INDEED SOME LEGAL EXPERTS SAY THE BOARD HAD REASON TO BELIEVE IT WAS ON SOLID GROUND THOUGH SEVERAL OF THE DIRECTORS INCLUDING LAZARD PARTNER LESTER POLLACK AS WELL AS ONE OF MR DAVIS'S TOP LIEUTENANTS DONALD ORESMAN HAD RESERVATIONS ABOUT EXCLUDING QVC THEY RARELY IF EVER VOICED THEIR CONCERNS TO FELLOW BOARD MEMBERS THE EXTENT OF THE BOARD'S COMPLACENCY AND MR DAVIS'S WILLINGNESS TO EXPLOIT IT CAUGHT UP WITH PARAMOUNT LAST WEEK DELAWARE'S SUPREME COURT UPHELD AN EARLIER RULING FORCING PARAMOUNT TO CONSIDER BOTH BIDS EQUALLY EFFECTIVELY THROWING THE BIDDING FOR PARAMOUNT WIDE OPEN THE LOWERCOURT RULING IT UPHELD HAD LASHED OUT HARSHLY AGAINST MR DAVIS AND HIS PASSIVE BOARD BY SKILLFUL ADVOCACY VICE CHANCELLOR JACK B JACOBS OF THE DELAWARE CHANCERY COURT WROTE IN HIS OPINION MANAGEMENT PERSUADED THE BOARD THAT NO EXPLORATION OF QVC'S OFFER WAS REQUIRED A PARAMOUNT SPOKESMAN DISAGREES MANAGEMENT DIDN'T STEER THE BOARD TO VIACOM HE SAID OVER THE WEEKEND THE BOARD WAS FULLY INFORMED AND PARTICIPATED IN EVERY SINGLE SOLITARY STEP YET THAT ASSERTION IS CONTRADICTED BY THE SWORN DEPOSITIONS OF DIRECTORS AT A TIME WHEN DIRECTORS MUST INCREASINGLY TAKE ON AN ACTIVIST ROLE OR FACE LEGAL CENSURE THE PARAMOUNT BOARD'S APPARENT LACK OF INDEPENDENT THOUGHT PROVIDES A LESSON IN THE PERILS OF BLINDLY FOLLOWING A STRONG LEADER AND STRONG IS AN UNDERSTATEMENT WHEN THE PERSON AT ISSUE IS MR DAVIS AN AUTOCRATIC 66YEAROLD WHO DOESN'T BROOK STRONGWILLED EXECUTIVES AROUND HIM AND WHO HAS BEEN KNOWN TO FIRE TALENTED UNDERLINGS WHO GET TOO MUCH ATTENTION TYPICALLY SURROUNDED BY YESMEN HE IS CHARACTERIZED EVEN BY HIS FANS AS A BULLY WHO BERATES HIS CLOSEST ALLIES WITH THE SLIGHTEST PROVOCATION EVEN NOW HE SHOWS NO SIGN OF BACKING DOWN AT A BOARD MEETING SCHEDULED FOR THIS AFTERNOON HE IS EXPECTED TO ARGUE AGAINST FORMING A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS TO IMPARTIALLY EVALUATE BOTH BIDS WITH THE AID OF NEW LAWYERS AND INVESTMENT BANKERS HE FULLY EXPECTS HIS DIRECTORS TO SUPPORT HIM AS USUAL ALTHOUGH PARAMOUNT DENIES IT PEOPLE CLOSE TO THE BOARD SAY THAT JUST AFTER THE RESOUNDING COURTROOM DEFEAT THURSDAY HE TELEPHONED DIRECTORS TO TEST THEIR SUPPORT FOR HIS STAND THE STAKES ARE HIGH FOR MR DAVIS THROUGH SHEER FORCE OF WILL HE HAS RESHAPED THE FORMER GULF & WESTERN TO CREATE A 4 BILLION ENTERTAINMENT AND PUBLISHING EMPIRE ENCOMPASSING THE MOVIE STUDIO RESPONSIBLE FOR INDECENT PROPOSAL AND ADDAMS FAMILY VALUES SIMON & SCHUSTER PUBLISHER OF BESTSELLERS BY BOTH RIGHTIST RADIO HOST RUSH LIMBAUGH AND RADIO LOUDMOUTH HOWARD STERN AND NEW YORK SPORTS TEAMS INCLUDING BASKETBALL'S KNICKERBOCKERS AND HOCKEY'S RANGERS HE IS DETERMINED NOT TO LOSE CONTROL AND DOCUMENTS AND MEMOS FILED IN THE COURT CASE ALONG WITH INTERVIEWS LAY BARE JUST HOW FAR HE WILL GO TO ENSURE HE KEEPS IT EVEN BEFORE PARAMOUNT AND VIACOM ANNOUNCED THEIR FRIENDLY DEAL ON SEPT 12 FOR EXAMPLE QVC HAD INDICATED ITS INTEREST IN PARAMOUNT BUT DIRECTORS WEREN'T TOLD SEVERAL BOARD MEMBERS SAID IN DEPOSITIONS MONTHS EARLIER IN JUNE JOHN C MALONE CHIEF EXECUTIVE OF TELECOMMUNICATIONS INC WHICH OWNED 22 OF QVC HAD TOLD MR DAVIS DURING A PHONE CONVERSATION THAT QVC CHIEF EXECUTIVE BARRY DILLER WAS INTERESTED IN MAKING A PARAMOUNT BID COURT RECORDS SHOW PARAMOUNT'S MR DAVIS WAS WARY HE SAID LATER IN A DEPOSITION HIS ATTITUDE TOWARD THE CANNY MR MALONE WAS NEVER BELIEVE HIM AND NEVER TRUST HIM NEVERTHELESS HE TOLD MR MALONE TO KEEP MR DILLER ON A LEASH ACCORDING TO MR MALONE'S DEPOSITION AFTER ALL HE TRUSTED MR DILLER EVEN LESS THERE WAS NO LOVE LOST BETWEEN THE TWO FIERY EXECUTIVES EVER SINCE MR DILLER CLASHED WITH MR DAVIS ABOUT A DECADE AGO WHILE WORKING FOR HIM AS HEAD OF GULF & WESTERN'S PARAMOUNT PICTURES UNIT ON JULY 21 MR DAVIS CONFRONTED HIS OLD FOE DIRECTLY USHERING MR DILLER INTO A LUNCHEON AT HIS 43RDFLOOR PRIVATE DINING ROOM THOUGH MR DILLER WAS EVASIVE ABOUT HIS INTENTIONS HE KEPT THE DOOR OPEN REGARDING A BID FOR PARAMOUNT I SAID TO MR DAVIS THAT WHEN AND IF I HAD ANYTHING TO SAY TO HIM ABOUT QVC'S INTENTIONS I WOULD CALL HIM MR DILLER TESTIFIED THE COMMENT DIDN'T APPEASE HIS LUNCHEON HOST RECALLED MR DILLER WHO TESTIFIED THAT MR DAVIS REPEATEDLY DECLARED I KNOW YOU ARE AFTER MY COMPANY THE ONGOING DRAMA APPARENTLY NEVER MADE IT TO DIRECTORS' EARS ACCORDING TO COURT RECORDS THE PARAMOUNT SPOKESMAN SAYS MR DAVIS INFORMED THE BOARD FULLY OF THE DILLER LUNCH AND EXACTLY WHAT DILLER SAID TO HIM BUT THAT ASSERTION IS DISPUTED IN DEPOSITIONS BY THREE DIRECTORS LAWRENCE M SMALL JAMES A PATTISON AND SAMUEL J SILBERMAN I WAS NOT INFORMED THAT THEY WERE HAVING LUNCH TOGETHER MR SILBERMAN SAID IN A DEPOSITION ABSOLUTELY NOT MR SMALL ANSWERED WHEN DEPOSED THE RECORD SHOWS THAT MOST IF NOT ALL OF PARAMOUNT'S DIRECTORS DIDN'T LEARN OF QVC'S POSSIBLE INTEREST UNTIL SEPT 12 WHEN THEY MET TO ENDORSE THE DEAL WITH VIACOM EVEN THEN THE HOMESHOPPING CONCERN WAS ONLY MENTIONED AS ONE OF SEVERAL POTENTIAL HOSTILE BIDDERS THAT LAZARD SPECULATED MIGHT SURFACE IN RESPONSE TO A VIACOM DEAL THE DIRECTORS FOR THEIR PART DIDN'T TRY TOO HARD TO LEARN ABOUT QVC'S APPARENT INTEREST OR ANYTHING ELSE RUMORS WERE RAMPANT UP AND DOWN WALL STREET ABOUT A POSSIBLE BID BY QVC OR OTHERS BUT IN SEPARATE DEPOSITIONS MR SMALL PRESIDENT OF FANNIE MAE AND MR PATTISON A VANCOUVERBASED INDUSTRIALIST SAID THEY HADN'T HEARD SUCH SPECULATION NOT THAT MOST OF THE 14 DIRECTORS WERE INCLINED TO DISAGREE WITH MR DAVIS ANYWAY ONE DIRECTOR WAS A PARTNER OF PARAMOUNT'S LAZARD ADVISERS TWO HAVE BEEN CLOSELY ASSOCIATED WITH MR DAVIS FOR MORE THAN 20 YEARS AND THREE MORE CURRENTLY WORK FOR HIM AT PARAMOUNT SEVERAL WERE APPOINTED BY HIS LATE PREDECESSOR CHARLES BLUDHORN AT A TIME WHEN MR DAVIS WAS IN CHARGE OF DIRECTOR RELATIONS HE COURTED THEM SO ASSIDUOUSLY MIXING A FLATTERING DEFERENTIAL ATTITUDE WITH FAVORS LIKE TICKETS TO MOVIE PREMIERES AND KNICKS GAMES THAT THEY REMAIN LOYALISTS TO THIS DAY MR DAVIS HAD STRENGTHENED THAT LOYALTY BY DELIVERING STRONG RESULTS UNDER HIS LEADERSHIP THE COMPANY'S STOCK PRICE MORE THAN DOUBLED IN THE SIX YEARS AFTER HE TOOK THE HELM OF THE COMPANY IN 1983 THOUGH ITS PERFORMANCE HAS BEEN FALTERING IN RECENT YEARS SUCH WAS THE BOARD'S TRUST IN MR DAVIS THAT IT GAVE HIM WIDE LATITUDE TO MAKE STRATEGIC DECISIONS SO WHEN THE VIACOM DEAL WAS ANNOUNCED PARAMOUNT'S BOARD WASN'T GIVEN A MAJOR ROLE TO PLAY IT NEVER FOR EXAMPLE HAD A CHANCE TO DISCUSS OR EVEN KNOW ABOUT SEVERAL SERIOUS SHORTCOMINGS JUST TWO MONTHS EARLIER PARAMOUNT HAD REJECTED A VERY SIMILAR VIACOM PROPOSAL VALUED AT 6086 A SHARE IN STOCK AND CASH THE COMPANY'S EXECUTIVE COMMITTEE WHICH INCLUDES MR DAVIS AND HIS LIEUTENANT MR ORESMAN DISMISSED THE BID AS TOO LOW THE BID WASN'T PRESENTED TO THE FULL BOARD NOW WHEN PARAMOUNT'S BOARD EMBRACED AN ALMOST IDENTICAL VIACOM OFFER THE DEAL INCLUDED LESS CASH THOUGH IT WAS NOW VALUED AT 6914 A SHARE BECAUSE VIACOM'S STOCK PRICE HAD CLIMBED WHY THE CHANGE OF HEART MANY OBSERVERS HAVE CONCLUDED THAT MR DAVIS WAS DESPERATE TO MAKE A DEFENSIVE MOVE TO WARD OFF THE INCREASINGLY LIKELY THREAT OF A QVC BID HE WAS DRIVEN BY HIS QUEST TO MAINTAIN A SEMBLANCE OF CONTROL AND STAY IN A LEADERSHIP POSITION CONTENDS LISBETH BARRON A MEDIA ANALYST WITH SG WARBURG & CO VIACOM'S SUMNER REDSTONE A TENACIOUS BILLIONAIRE WHO STARTED OUT IN THE DRIVEIN THEATER BUSINESS BEFORE BUYING VIACOM IN THE LATE 1980S CERTAINLY SEEMED TO SENSE DESPERATION IN HIS MERGER PARTNER HE WAS ABLE TO DEMAND EXTRAORDINARY CONDITIONS INCLUDING THE ONEROUS LOCKUP PROVISION THAT COULD HAVE GIVEN VIACOM MORE THAN 400 MILLION IF THE HOMESHOPPING CONCERN WON PARAMOUNT A PROVISION THE DELAWARE COURT THREW OUT THAT CLAUSE AND OTHERS INCLUDING A NOSHOP PROVISION PREVENTING PARAMOUNT FROM SHOPPING THE COMPANY OR TALKING TO ANY BIDDER WITH FINANCING CONTINGENCIES WERE DEEMED LEGALLY QUESTIONABLE BY MR REDSTONE'S OWN LAWYERS SAY PEOPLE CLOSE TO HIM YET PARAMOUNT'S BOARD DIDN'T QUESTION THE LEGALITY OF THOSE HIGHLY UNUSUAL PROVISIONS IN FACT ACCORDING TO COURT RECORDS THE BOARD WASN'T TOLD THAT ANY OF THE PROVISIONS WERE UNUSUAL THE BOARD ALSO DIDN'T DEMAND ANY PROTECTION FOR SHAREHOLDERS IN CASE VIACOM'S SHARE PRICE DROPPED WHICH WOULD SEND THE VALUE OF THE STOCKANDCASH DEAL TUMBLING IN A BRIEFING ON SEPT 9 THE BOARD HAD BEEN TOLD THAT PARAMOUNT NEGOTIATORS WERE ASKING VIACOM TO GUARANTEE A MINIMUM PRICE FOR THE SHARES IT PLANNED TO USE TO PAY PARAMOUNT SHAREHOLDERS A PRICE PROTECTION KNOWN IN WALL STREET PARLANCE AS A COLLAR THE BOARD WAS ALSO TOLD DURING THAT MEETING THAT THE VIACOM DEAL PROVIDED LITTLE MANEUVERING ROOM FOR DIRECTORS TO ABANDON VIACOM A NARROW FIDUCIARY OUT EVEN IF A RIVAL OFFER WITH FINANCING CAME ALONG YET AT THE SEPT 12 MEETING THOSE SHORTCOMINGS WERE SHRUGGED OFF THE DELAWARE COURT WOULD LATER FIND THAT THE AGREEMENT ILLEGALLY DEFINED OR LIMITED THE DIRECTORS' DUTY TO MAKE THE BEST DEAL POSSIBLE FOR SHAREHOLDERS MAKING MATTERS WORSE MR DAVIS AND HIS ADVISERS PLAYED DOWN TO THE BOARD ONE PARTICULARLY SERIOUS CONCERN ABOUT THE VIACOM BID CERTAINLY VIACOM'S OFFER WAS VALUED HIGHER THAN THE PROPOSAL REJECTED IN JULY BUT ONLY BECAUSE VIACOM'S SHARE PRICE HAD INCREASED WHAT FUELED THE PRICE RISE VIACOM'S CHAIRMAN MR REDSTONE HAD MADE HEAVY PURCHASES OF VIACOM'S THINLY TRADED STOCK JUST BEFORE THE MERGER TERMS WERE NAILED DOWN BOTH MR DAVIS AND HIS BANKERS WORRIED THAT THOSE MOVES HAD ARTIFICIALLY INFLATED VIACOM'S STOCK PRICE VIACOM'S INVESTMENT BANKER SMITH BARNEY SHEARSON INC SHRUGGED OFF THE BUYING SPREE MR REDSTONE'S ACTIONS WERE PERFECTLY LEGAL AND HADN'T CAUSED THE PRICE RISE SMITH BARNEY ASSURED THE PARAMOUNT TEAM BESIDES MR REDSTONE HAD STOPPED BUYING IN AUGUST APPEASED THE BANKERS AND MR DAVIS PASSED ON SMITH BARNEY'S EXPLANATION TO PARAMOUNT'S BOARD WHICH ALSO WAS SATISFIED STILL THE SECURITIES AND EXCHANGE COMMISSION HAS LAUNCHED AN INVESTIGATION INTO THE TRADING BY MR REDSTONE AND A COMPANY 25OWNED BY HIM THE BOARD WAS KEPT OUT OF THE LOOP ONCE AGAIN JUST DAYS AFTER THE VIACOM DEAL WAS ANNOUNCED WHEN QVC WEIGHED IN WITH ITS INITIAL SEPT 20 BID OFFERING 2 BILLION MORE FOR THE COMPANY THE OFFER WAS PROMPTLY SHOT DOWN BY MR DAVIS AND UNDER THE TERMS OF THE VIACOM BID THE BOARD WASN'T PERMITTED TO CONSIDER QVC'S OFFER OR WHETHER THE COMPANY SHOULD BE PUT UP FOR AUCTION WHILE THE BOARD DIDN'T GET A CHANCE TO DISCUSS A POSSIBLE AUCTION ALMOST EVERYONE ELSE ON BOTH SIDES OF THE FIGHT DID ON NOV 1 QVC ITSELF SENT OVER A MEMO TITLED FAIR BIDDING PROCESS WHICH SUGGESTED GUIDELINES FOR AN AUCTION QVC'S MR DILLER HAD HELD OUT A TEMPTING CARROT PLAY FAIR AND QVC MIGHT CONSIDER SWEETENING ITS OFFER PARAMOUNT'S OWN INVESTMENT ADVISERS AT LAZARD HAD ALSO ASKED WHETHER THE COMPANY SHOULD GO INTO AN AUCTION MODE THE BANKERS LED BY MERGERS HEAVYWEIGHT MR ROHATYN 65 AND STEVEN RATTNER 41 A BOYISH FORMER NEWSPAPER REPORTER WHO IS A RISING STAR AT THE FIRM WERE GROWING WORRIED THEY HAD THEIR REPUTATIONS TO CONSIDER AND DIDN'T WANT TO BE PILLORIED IF MR DAVIS WAS CRITICIZED FOR PROCEEDING IMPROPERLY YET PARAMOUNT MANAGEMENT PROMPTLY REJECTED THE IDEA OF AN AUCTION A DECISION BACKED BY LAWYERS AT SIMPSON THACHER & BARTLETT INDEED SIMPSON THACHER WARNED DIRECTORS THAT VIACOM COULD SUE THEM FOR EVEN TALKING TO QVC IN DEPOSITIONS SEVERAL DIRECTORS SAID THEY HADN'T BEEN CONSULTED BEFORE PARAMOUNT SPURNED QVC'S FAIRBIDDING PROPOSAL IF DIRECTORS DIDN'T HEAR MUCH ABOUT THE VIACOM DEAL'S SHORTCOMINGS THEY GOT AN EARFUL ABOUT PROBLEMS WITH QVC'S HIGHER BID WHEN QVC INCREASED ITS BID ON NOV 12 TOPPING VIACOM'S SWEETENED PROPOSAL BY MORE THAN 1 BILLION MR ORESMAN MR DAVIS'S TOP AIDE DASHED OFF A MEMO SLAMMING THE HOMESHOPPING COMPANY OVER THREE PAGES HE LASHED OUT AT THE CONDITIONS AND UNCERTAINTIES OF QVC'S OFFER BUT OMITTED ANY MENTION OF ITS HIGHER PRICE HIS SCATHING MISSIVE AGAINST QVC WAS MESSENGERED OR FAXED TO DIRECTORS' HOMES AND OFFICES ON THE MORNING OF NOV 15 JUST AS DIRECTORS WERE PREPARING TO MEET TO DISCUSS THE OFFER IN A LATER DEPOSITION PARAMOUNT DIRECTOR MR PATTISON ADMITTED THE MEMO WAS ONE FACTOR THAT COLORED HIS VIEW OF QVC'S OFFER BY THE TIME I GOT THROUGH READING THIS HE SAID I WAS VERY NEGATIVE ON THE WHOLE THING THE MEMO TURNED OUT TO BE A MAJOR BLUNDER FOR PARAMOUNT THE DELAWARE CHANCERY COURT SINGLED IT OUT IN CONCLUDING THAT PARAMOUNT PUT A DISPROPORTIONATE EMPHASIS ON QVC'S CONTINGENCIES AND THAT THE BOARD SIMPLY FOLLOWED MANAGEMENT'S LEAD IN REJECTING THE UNWELCOME OFFER SOMETIMES DIRECTORS STRETCHED TO IMPROBABLE LENGTHS TO BACK MR DAVIS COMING UP WITH ALL SORTS OF INVENTIVE WAYS IN WHICH TO RATIONALIZE REJECTING QVC'S HIGHER BID NOWHERE WAS THAT MORE CLEAR THAN AT THE NOV 15 MEETING THE ONE WHERE LAZARD PRONOUNCED THE VIACOM BID FAIR BUT SAID IT WASN'T ASKED TO OPINE ON THE HIGHER QVC BID IN THE STARK OVERHEATED CONFERENCE ROOM THAT AFTERNOON DIRECTOR IRVING R FISCHER CHAIRMAN OF HRH CONSTRUCTION AND A PAL OF MR DAVIS'S FROM CHARITY WORK REGALED FELLOW DIRECTORS WITH A STORY OF ONCE ACCEPTING A 500000 OFFER FOR A MANHATTAN APARTMENT WHILE SPURNING A HIGHER OFFER THAT HAD NO FINANCING BEHIND IT THE OTHER DIRECTORS NODDED IN AGREEMENT INCLUDING LOYAL BLUDHORN HOLDOVERS SUCH AS IRWIN SCHLOSS AND MR SILBERMAN THE FORMER CHAIRMAN OF CONSOLIDATED CIGAR CORP A ONETIME GULF & WESTERN UNIT AT LEAST ONE BOARD MEMBER HAD HIS OWN VERY PERSONAL REASON TO FOLLOW MANAGEMENT'S LEAD J HUGH LIEDTKE CHAIRMAN OF PENNZOIL CO HAD COME TO SIMILAR ANTIQVC CONCLUSIONS ON HIS OWN AFTER ALL HE HAD SUCCESSFULLY SUED TEXACO FOR INTERFERING WITH PENNZOIL'S AGREEMENT TO ACQUIRE GETTY CO IN THE MID1980S TO HIM QVC WAS JUST TRYING TO PULL A TEXACO AND WAS EQUALLY IN THE WRONG MR POLLACK DIDN'T RETURN NUMEROUS CALLS TO HIS OFFICE THE PARAMOUNT SPOKESMAN CALLS THAT ACCOUNT ABSURD MR POLLACK ALWAYS ASKS GOOD QUESTIONS AND EVERYONE RESPECTS HIM FOR IT LIFE IS SURE TO GET MORE DIFFICULT NOW THAT THE DELAWARE SUPREME COURT HAS RULED AGAINST PARAMOUNT DEMANDING THAT IT CONSIDER BOTH BIDDERS ON EQUAL FOOTING AND NOW THAT THE COURT HAS LASHED OUT SO PUBLICLY AT PARAMOUNT'S BEHAVIOR THE FINGERPOINTING AMONG THE COMPANY'S ADVISERS HAS BEGUN SOME PARTICIPANTS FAULT THE SIMPSON THACHER LAWYERS FOR NOT PUTTING PARAMOUNT FOR SALE TO THE HIGHEST BIDDER IN THE FIRST PLACE ON THE OTHER HAND SOME RIVAL INVESTMENT BANKERS FAULT LAZARD'S MR ROHATYN FOR NOT HOLDING TO A PROMISE HE MADE EARLY ON THAT MR DAVIS WOULD PURSUE SHAREHOLDERS' BEST INTERESTS IF ANYONE HAD THE STATURE TO CONFRONT MR DAVIS IT WOULD HAVE BEEN MR ROHATYN WALL STREET'S ELDER STATESMAN AND ARGUABLY THE COUNTRY'S MOST RESPECTED INVESTMENT BANKER ALL HE WOULD HAVE HAD TO DO SAYS ONE RIVAL BANKER WAS STAND UP AT SOME POINT AND SAY I'M UNCOMFORTABLE HERE BOTH THACHER AND LAZARD EXECUTIVES DECLINE TO COMMENT PUBLICLY BUT ONE BANKER SAYS WE HAVE A CLIENT AND WE TRIED TO BE AS FAIR AS WE CAN AND WE'LL TAKE A BEATING FOR HIS ACTIONS LAURA LANDRO CONTRIBUTED TO THIS ARTICLE J HUGH LIEDTKE CHAIRMAN OF PENNZOIL CO IRWIN SCHLOSS PRESIDENT OF MARCUS SCHLOSS & CO GEORGE WEISSMAN FORMER CHAIRMAN OF PHILIP MORRIS COS 9312130118 931213 ECONOMY MIT AND US WEIGH TRUST SETTLEMENT FREEING COLLEGES TO JOINTLY LIMIT AID BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL THE JUSTICE DEPARTMENT AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY ARE DISCUSSING AN ANTITRUST SETTLEMENT THAT WOULD GREATLY STRENGTHEN COLLEGES' ABILITY TO LIMIT STUDENT FINANCIALAID AWARDS PEOPLE FAMILIAR WITH THE TALKS SAY THAT A DRAFT SETTLEMENT AGREEMENT HAS BEEN NEGOTIATED AS CONGRESSIONAL PRESSURE MOUNTED ON THE JUSTICE DEPARTMENT TO DROP ITS PRICEFIXING CASE AGAINST MIT IN THE CASE THE GOVERNMENT SUED MIT OVER ITS LONGSTANDING PRACTICE OF JOINTLY SETTING AID AWARDS WITH OTHER COLLEGES FOR STUDENTS WHO APPLIED TO BOTH MIT AND THE OTHER SCHOOLS THE GOVERNMENT ARGUED THAT THE PRACTICE VIOLATED ANTITRUST LAWS BY LOWERING FINANCIALAID AWARDS TO MANY STUDENTS AND MAKING THE EFFECTIVE TUITION THE SAME AT THESE SCHOOLS DENYING STUDENTS A CHOICE BASED ON PRICE BUT MIT ARGUED THAT IT WAS ONLY TRYING TO LIMIT AID AWARDS TO SOME STUDENTS SO THAT IT COULD GIVE MORE FINANCIAL AID TO OTHER NEEDY STUDENTS CREATING SOCIAL BENEFITS THAT OVERRODE ANTITRUST CONCERNS THE AGREEMENT UNDER DISCUSSION WOULD END THE DISPUTE ON TERMS FAVORABLE TO MIT AND HIGHER EDUCATION BY PROVIDING A BROAD ANTITRUST EXEMPTION FOR COLLEGES TO EXCHANGE SENSITIVE COMPETITIVE DATA ON FINANCIAL AID WHEN SUCH EXCHANGES ACHIEVE SOCIAL WELFARE ENDS BUT THE SETTLEMENT WOULD ALSO MAKE IT HARDER FOR STUDENTS TO NEGOTIATE FOR BETTER FINANCIALAID TERMS WITH COLLEGES OVER 30 BILLION IN AID IS AWARDED EACH YEAR ANY PACT WITH MIT WOULD ALSO APPLY TO THE EIGHT SCHOOLS OF THE IVY LEAGUE AMENDING A SETTLEMENT THEY NEGOTIATED WITH THE JUSTICE DEPARTMENT IN 1991 MORE BROADLY LEGAL SCHOLARS SAID THAT A SETTLED AGREEMENT COULD SUBSTANTIALLY STRENGTHEN THE HAND OF CORPORATIONS AND OTHERS ACCUSED OF PRICEFIXING BY ENSHRINING A NEW DEFENSE BASED ON PURPORTED SOCIAL BENEFITS OF THEIR COLLUSIVE BEHAVIOR ALTHOUGH TERMS AREN'T FINAL AND DISCUSSIONS CONTINUE PEOPLE FAMILIAR WITH THE TALKS SAY THE BROAD OUTLINES OF AN AGREEMENT ARE ALREADY IN PLACE AND A SETTLEMENT COULD BE ANNOUNCED WITHIN DAYS UNDER THIS OUTLINE MIT WOULD NOT ADMIT ANY GUILT WOULD NOT SIGN A CONSENT DECREE AND THE GOVERNMENT WOULD DROP ITS COURT CASE AGAINST THE SCHOOL IN ADDITION MIT WOULD GET JUSTICE DEPARTMENT APPROVAL TO EXCHANGE INFORMATION WITH OTHER SCHOOLS FOR THE PURPOSE OF MONITORING AND IDENTIFYING WHICH SCHOOLS GIVE AID AWARDS SUBSTANTIALLY MORE GENEROUS THAN ITS OWN A THIRD PARTY SUCH AS A MAJOR ACCOUNTING FIRM WOULD CONDUCT AND AUDIT THE EXCHANGES MIT IS GETTING 95 OF WHAT IT WANTED SAID ONE PERSON FAMILIAR WITH THE NEGOTIATIONS IT'S A TOTAL CAVEIN BY THE GOVERNMENT IN A SMALL CONCESSION MIT WOULD AFFIRM THAT ANY COLLUSIVE DISCUSSIONS WITH THE SCHOOLS THAT SIGNED THE IVY CONSENT DECREE WOULD BE ILLEGAL UNDER THAT DECREE BROWN COLUMBIA CORNELL DARTMOUTH HARVARD PRINCETON YALE AND THE UNIVERSITY OF PENNSYLVANIA AGREED NOT TO COLLUDE ON FINANCIAL AID TUITION AND FACULTY SALARIES SPOKESMEN FOR THE JUSTICE DEPARTMENT AND MIT IN CAMBRIDGE MASS CONFIRMED THAT THE TWO SIDES WERE DISCUSSING A SETTLEMENT BUT DECLINED TO DISCUSS DETAILS I'D CHARACTERIZE THE DISCUSSIONS AS INTENSIVE SAID THANE SCOTT THE ATTORNEY WHO IS CONDUCTING MIT'S NEGOTIATIONS THE JUSTICE DEPARTMENT SUED MIT OVER A PRACTICE CALLED OVERLAP A SYSTEM THAT IT THE IVIES AND OTHER NORTHEAST COLLEGES USED FOR OVER 30 YEARS TO SET FINANCIALAID AWARDS FOR STUDENTS WHO WERE ADMITTED TO MORE THAN ONE OF THE SCHOOLS THE SCHOOLS MET EVERY APRIL COMPARED NOTES AND AMENDED AID VARIANCES SO THAT A STUDENT'S FAMILY CONTRIBUTION OR NET TUITION PRICE WAS THE SAME NO MATTER WHAT SCHOOL HE OR SHE CHOSE TO ATTEND THE MEETINGS ENDED IN 1991 AFTER THE US BEGAN ITS INQUIRY THE SETTLEMENT UNDER DISCUSSION WOULDN'T ALLOW STUDENTBYSTUDENT COMPARISONS AGAIN BUT THEY WOULD ALLOW MIT AND SCHOOLS THAT PARTICIPATE IN THE NEW MECHANISM TO IDENTIFY READILY WHICH COMPETITORS LOWER THEIR EFFECTIVE PRICES THROUGH MORE AID AWARDS AS SCHOOLS WOULD BE RELUCTANT TO BE IDENTIFIED AS BIDDING FOR TOP STUDENTS MIT IS COUNTING ON THE MONITORING TO KEEP THEIR AID OFFERS LOWER THAN THEY WOULD OTHERWISE BE STILL UNDECIDED IS HOW MUCH IF ANY INFORMATION SCHOOLS WILL BE ALLOWED TO EXCHANGE BEFORE AID AWARDS GO OUT ALTHOUGH THE BASIC FACTS OF OVERLAP HAVE NEVER BEEN IN DISPUTE AND EVEN SOME LEGAL SCHOLARS SYMPATHETIC TO THE COLLEGES SAY THAT THE PRACTICE RESEMBLED CARTEL BEHAVIOR ITS ECONOMIC SOCIAL AND LEGAL IMPLICATIONS HAVE BEEN HOTLY DEBATED SINCE THE GOVERNMENT BROUGHT ITS CASE THE GOVERNMENT HAS ARGUED THAT OVERLAP AMOUNTED TO ILLEGAL PRICEFIXING THAT CAPPED INDIVIDUAL AID AWARDS UNFAIRLY MIT AND MANY OTHERS IN HIGHER EDUCATION CONTEND THAT IT IS IMPOSSIBLE TO AWARD AID SOLELY ON THE BASIS OF NEED AND TO MEET STUDENTS' FULL NEED WITHOUT SOME SYSTEM OF POLICING THE SCHOOLS THAT WOULD OFFER MORE AID TO WOO AWAY THE BEST STUDENTS AFTER LOSING A DECISION IN US DISTRICT COURT IN PHILADELPHIA MIT WON AN APPEALS RULING AGAINST THE GOVERNMENT IN THE CASE THREE MONTHS AGO THE APPEALS RULING ALSO IN PHILADELPHIA ORDERED THE LOWER COURT TO RECONSIDER THE CASE WEIGHING SOCIAL WELFARE BENEFITS OF OVERLAP AGAINST ITS ANTICOMPETITIVE ASPECTS SINCE THAT RULING THE JUSTICE DEPARTMENT HAS BEEN UNDER HEAVY PRESSURE TO SETTLE IN RECENT WEEKS GOVERNMENT OFFICIALS SAY THE DEPARTMENT RECEIVED A LETTER FROM THE CONGRESSIONAL BLACK CAUCUS AND COMMUNICATIONS FROM MASSACHUSETTS SEN TED KENNEDY AND OTHER PROMINENT LEGISLATORS URGING IT TO DROP THE CASE ANTITRUST CHIEF ANNE BINGAMAN A TRUSTEE OF STANFORD UNIVERSITY HAS RECUSED HERSELF FROM THE CASE BECAUSE OF HER LINKS TO HIGHER EDUCATION BUT HER NEW DEPUTY FOR ANTITRUST MATTERS ROBERT LITAN HAS CONDUCTED INTENSIVE TALKS WITH MIT LAWYERS IN THE PAST WEEK ACCORDING TO PEOPLE FAMILIAR WITH HIS VIEWS MR LITAN SEES THE GOVERNMENT'S CHANCES OF WINNING IN COURT AS UNCERTAIN AND IS SYMPATHETIC TO THE SCHOOLS' ARGUMENTS ON SOCIAL BENEFITS BUT STEVEN SALOP A PROFESSOR OF ECONOMICS AND LAW AT GEORGETOWN UNIVERSITY SAYS GOVERNMENT CONCESSIONS ON SOCIAL BENEFITS COULD WEAKEN FUTURE ANTITRUST CASES I'M DISAPPOINTED THAT THE DEPARTMENT OF JUSTICE IS NOT ALLOWING THE COURTS TO MAKE A DECISION THE TERMS UNDER DISCUSSION PROF SALOP ADDS GREATLY EXPAND A SOCIALWELFARE DEFENSE THAT COURTS HAVE BEEN RELUCTANT TO ALLOW UNDER SUCH A DEFENSE MR SALOP SAYS CAR MAKERS ACCUSED OF PRICEFIXING ON LUXURY AUTOMOBILES COULD WIN BY SAYING THEY WERE DOING SO TO REDUCE ENTRYLEVEL CAR PRICES FOR LOWINCOME BUYERS ALTHOUGH BLACK GROUPS SUCH AS THE UNITED NEGRO COLLEGE FUND HAVE SUPPORTED MIT'S ARGUMENTS THAT OVERLAP HELPED PRESERVE NEEDBASED AID PROF SALOP ALSO SAID THAT THE BIG LOSERS IN A SETTLEMENT FAVORABLE TO MIT WOULD BE VERY SMART BLACK STUDENTS WHOSE AID OFFERS HAVE SOARED SINCE THE IVIES SIGNED THE CONSENT DECREE 9312130117 931213 ECONOMY CLINTON ADVISERS NARROW LIST OF FED CANDIDATES WASHINGTON PRESIDENT CLINTON'S ECONOMIC ADVISERS HAVE NARROWED THEIR LIST OF CANDIDATES TO FILL A SEAT ON THE FEDERAL RESERVE BOARD TO FOUR ECONOMISTS ADMINISTRATION OFFICIALS SAID THEY ARE ALICE RIVLIN DEPUTY WHITE HOUSE BUDGET DIRECTOR PETER KENEN A PRINCETON UNIVERSITY ECONOMIST WITH INTERESTS IN INTERNATIONAL MATTERS VAN DOORN OOMS RESEARCH DIRECTOR FOR THE NONPROFIT BUSINESSFUNDED COMMITTEE FOR ECONOMIC DEVELOPMENT AND FORMER CHIEF ECONOMIST OF THE HOUSE BUDGET COMMITTEE AND GEORGE PERRY A MACROECONOMIST AT THE BROOKINGS INSTITUTION FOR MONTHS ADMINISTRATION ECONOMIC OFFICIALS HAVE BEEN SIFTING THROUGH NAMES FOR MR CLINTON'S FIRST NOMINEE TO THE SEVENMEMBER FED BOARD BUT THE SELECTION PROCESS HAS ONLY BEGUN TO PICK UP SPEED IN THE PAST WEEK OR SO THE EVENTUAL NOMINEE IF CONFIRMED BY THE SENATE WOULD SUCCEED WAYNE ANGELL A REAGAN APPOINTEE WHOSE TERM EXPIRES AT THE END OF JANUARY ANY OF THE FOUR CONTENDERS WOULD LIKELY BE MORE SYMPATHETIC TO THE CLINTON ADMINISTRATION'S VIEWS ON MONETARY POLICY ECONOMIC POLICY AND BANKING MATTERS THAN MR ANGELL A HARDLINE INFLATION FIGHTER AND CRITIC OF REGULATION THE NEW BOARD MEMBER WOULD BE A CONTENDER TO BE APPOINTED VICE CHAIRMAN OF THE FED BY MR CLINTON WHEN DAVID MULLINS'S TERM IN THAT POST EXPIRES IN JULY 1995 MR MULLINS'S TERM AS A BOARD MEMBER EXTENDS TO JAN 1 1996 THE LIST OF CANDIDATES WAS FIRST REPORTED IN BUSINESS WEEK 9312130116 931213 TWO ARE SENTENCED IN SCHEME TO EXTORT MONEY FROM AT&T TRENTON NJ THE US ATTORNEY'S OFFICE SAID A FORMER EMPLOYEE OF AMERICAN TELEPHONE & TELEGRAPH CO AND HIS UNCLE WERE SENTENCED TO 18 MONTHS IN PRISON FOR CONSPIRING TO EXTORT 1 MILLION FROM THE COMPANY FEDERAL PROSECUTORS SAID 30YEAROLD LOUIS PACICH A FORMER PROJECT COORDINATOR FOR AT&T IN PISCATAWAY AND HIS 43YEAROLD UNCLE RICHARD VIGNEVIC WERE ALSO ORDERED TO SERVE THREEYEAR PERIODS OF SUPERVISED RELEASE AFTER PRISON AND TO PAY 4000 IN FINES TO THE GOVERNMENT THEY BOTH PLEADED GUILTY IN SEPTEMBER MR PACICH ADMITTED TO STEALING COMPUTERIZED RECORDS FROM 4000 CUSTOMER ACCOUNTS IN APRIL 1993 MR VIGNEVIC THEN CONTACTED THE COMPANY AND FALSELY WARNED THAT SOMEONE AT AT&T WAS SELLING ACCOUNT INFORMATION TO COMPETITOR COMPANIES MR VIGNEVIC DEMANDED 1 MILLION FROM THE COMPANY TO PLUG THE LEAK ON A TAPE SENT TO AT&T PROSECUTORS SAID 9312130115 931213 COASTAL CORP EXPECTS PIPELINE THROUGHPUT TO RISE 5 FOR YEAR HOUSTON COASTAL CORP OPERATOR OF A MAJOR PIPELINE SYSTEM SAID IT EXPECTS TO REPORT A 5 INCREASE IN NATURALGAS THROUGHPUT FOR THE YEAR JAMES F CORDES AN EXECUTIVE VICE PRESIDENT SAID THE COMPANY'S INCREASED VOLUME WILL HELP OFFSET THE RECENT DROP IN GAS PRICES CURRENTLY AROUND 2 PER THOUSAND CUBIC FEET AND SLIGHTLY BELOW YEAREARLIER LEVELS BUT MR CORDES ALSO PRESIDENT OF COASTAL'S AMERICAN NATURAL RESOURCES CO PIPELINE UNIT FORESEES GAS PRICES WELL BELOW 2 IN COMING WEEKS IF THE WARM FALL PERSISTS AND THE RECENT DECLINE IN CRUDEOIL PRICES CONTINUES LOWER PRICES MIGHT ACTUALLY BE STIMULATING DEMAND MR CORDES SAID LESS THAN 20 OF THE GAS ON COASTAL'S 20000MILE US SYSTEM IS OWNED BY THE COMPANY MOST IS OWNED BY UTILITIES WHO PAY COASTAL A MERCHANT FEE OUR THROUGHPUT MAY ACTUALLY BE HELPED BY LOWER PRICES IN THE SHORT TERM HE SAID IN 1992 COASTAL'S DAILY PIPELINE THROUGHPUT WAS 52 BILLION CUBIC FEET OF GAS THIS YEAR'S EXPECTED INCREASE IN THROUGHPUT SHOULD TRANSLATE INTO INCREASED REVENUE AND HIGHER OPERATING INCOME MR CORDES DECLINED TO COMMENT ON COASTAL'S EARNINGS EXPECTATIONS MR CORDES SAID THAT IF UNSEASONABLY WARM WEATHER PERSISTS IN PARTS OF THE MIDWEST AND NORTHEAST GAS PRICES WILL LIKELY CONTINUE TO FALL MOREOVER THE STEEP DROP IN CRUDEOIL PRICES SINCE EARLY NOVEMBER CAUSED MANY UTILITIES AND MANUFACTURERS WHOSE BOILERS CAN BURN EITHER GAS OR OIL TO SWITCH TO OIL HE SAID ESPECIALLY IN THE NORTHEAST CALIFORNIA TEXAS AND SOMEWHAT IN FLORIDA NATURAL GAS IS OUT OF THE MARKET IN THESE AREAS BY 25 CENTS TO 50 CENTS PER THOUSAND CUBIC FEET HE SAID EVEN THOUGH MR CORDES EXPECTS THE GAS MARKET TO BE VOLATILE FOR THE NEXT FEW MONTHS HE INSISTS HE ISN'T PESSIMISTIC I THINK MOST OF THE BIG COMPANIES WHO CAN SWITCH FROM GAS TO OIL HAVE DONE SO ALREADY HE SAID 9312130114 931213 WELLCOME STOCK FALLS AFTER ARTICLE REPORTS RESISTANCE TO DRUG SPECIAL TO THE WALL STREET JOURNAL LONDON WELLCOME PLC'S SHARES ENDED 44 LOWER ON THE LONDON STOCK EXCHANGE FRIDAY APPARENTLY IN A DELAYED REACTION TO A REPORT IN THE NEW ENGLAND JOURNAL OF MEDICINE THE ARTICLE IN THE DEC 9 ISSUE REPORTED THAT A MALE PATIENT WITH FREQUENTLY RECURRING OUTBREAKS OF GENITAL HERPES WAS FOUND TO BE RESISTANT TO TREATMENT WITH ACYCLOVIR THE HERPES DRUG SOLD BY WELLCOME AS ZOVIRAX THE OUTBREAKS WERE NOT SUPPRESSED DESPITE TREATMENT WITH 48 GRAMS OF ORAL ACYCLOVIR A DAY AND SUSTAINED APPROPRIATE SERUM DRUG LEVELS THE AUTHORS OF THE STUDY SAID ALTHOUGH THE ARTICLE APPEARED IN THE PERIODICAL ON WEDNESDAY SOME ANALYSTS SAID THEY HADN'T READ IT UNTIL LATE THURSDAY AND EARLY FRIDAY HENCE THE STOCK'S DELAYED REACTION THE STOCK CLOSED 29 PENCE LOWER AT 627 PENCE 937 IN THE PAST 12 MONTHS WELLCOME'S STOCK HAS BEEN VOLATILE TRADING BETWEEN A LOW OF 593 PENCE AND A HIGH OF 995 PENCE ZOVIRAX IS WELLCOME'S TOPSELLING DRUG BUT INCREASINGLY HAS COME UNDER A CLOUD AS SALES DECLINE AND COMPETITIVE DRUGS THREATEN TO WORSEN THE SITUATION IN THE FISCAL YEAR ENDED SEPTEMBER SALES OF THE DRUG GREW BY AN UNDERLYING 11 COMPARED WITH A RATE IN EXCESS OF 20 IN 1992 FOR 1993 ZOVIRAX SALES WERE 586 MILLION 8753 MILLION 9312130113 931213 KENDALL SHAREHOLDERS SUE OFFERING'S UNDERWRITERS BOSTON THE LEAD UNDERWRITERS OF A MARCH STOCK OFFERING BY KENDALL SQUARE RESEARCH CORP WERE NAMED AS DEFENDANTS IN A LAWSUIT FILED BY THREE SHAREHOLDERS OF THE TROUBLED SUPERCOMPUTER COMPANY THE UNDERWRITERS ALEX BROWN INC'S ALEX BROWN & SONS INC BEAR STEARNS & CO AND SALOMON INC'S SALOMON BROTHERS INC WERE NAMED WITH THE COMPANY'S OUTSIDE AUDITOR PRICE WATERHOUSE & CO AND THREE COMPANY OFFICIALS SEVERAL SHAREHOLDERS ALREADY SUED KENDALL AND ITS DIRECTORS OVER THE COMPANY'S ADMISSION THAT IT EXAGGERATED ITS REVENUE DURING THE PAST TWO YEARS BUT THE LATEST SUIT FILED IN US DISTRICT COURT IN BOSTON AND SEEKING UNSTATED DAMAGES IS BELIEVED TO BE THE FIRST TO NAME THE UNDERWRITERS AS DEFENDANTS WHO ARE ACCUSED OF VIOLATING FEDERAL SECURITIES LAWS AN EARLIER SUIT NAMED PRICE WATERHOUSE AS A DEFENDANT PRICE WATERHOUSE HAS WITHDRAWN SUPPORT FOR THE ACCURACY OF KENDALL SQUARE'S 1992 RESULTS WHICH THE COMPANY LATER REVISED DOWNWARD THE COMPANY'S DISCLOSURE POLICIES ALSO ARE UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION OFFICIALS WITH THE THREE UNDERWRITERS AND PRICE WATERHOUSE COULDN'T BE REACHED IMMEDIATELY FOR COMMENT 9312130112 931213 LAW GOVERNMENT DROPS PROBE OF SEVEN DALLAS LAW FIRMS DALLAS THE DEPARTMENT OF JUSTICE HAS DROPPED AN INVESTIGATION INTO WHETHER SEVEN OF DALLAS'S BIGGEST LAW FIRMS COLLUDED TO FIX SALARIES FOR SUMMER AND FIRSTYEAR ASSOCIATES THE AGENCY LAST WEEK NOTIFIED THE FIRMS IN A LETTER THAT THE INQUIRY WAS CLOSED AND THANKED THEM FOR THEIR COOPERATION LAWYERS AT THE FIRMS SAID THE DEPARTMENT COULDN'T BE REACHED THOUGH THE GOVERNMENT NEVER OFFICIALLY ACKNOWLEDGED THAT ITS PROBE WAS FOCUSED ON SALARIES THE FIRMS CONFIRMED THAT THE AGENCY REQUESTED SALARY SCHEDULES FOR SUMMER AND FIRSTYEAR ASSOCIATES AND ASKED ABOUT THE PROCESS THE FIRMS USED FOR DETERMINING THE SALARIES TOBY GERBER MANAGING DIRECTOR OF JOHNSON & GIBBS SAID HE WASN'T SURPRISED BY THE DECISION TO END THE INQUIRY WE THOUGHT ALL ALONG THAT THERE WASN'T ANY VIOLATION HE SAID IN ADDITION TO JOHNSON & GIBBS THE FIRMS CONTACTED BY THE GOVERNMENT WERE GARDERE & WYNNE STRASBURGER & PRICE AKIN GUMP STRAUSS HAUER & FELD HUGHES & LUCE LOCKE PURNELL RAIN HARRELL AND HAYNES & BOONE 9312130111 931213 TECHNOLOGY & ENVIRONMENT CAR INSURERS SHOW INCREASING INTEREST IN USING MANAGED HEALTHCARE CLAIMS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL INSURANCE COMPANIES ARE SHOWING INCREASING INTEREST IN USING MANAGED HEALTH CARE FOR CAR INSURANCE CLAIMS BY USING MANAGED CARE TO COVER PERSONAL INJURY CLAIMS CAR INSURERS CAN CUT MEDICAL COSTS AND PASS THE SAVINGS ON TO CONSUMERS ACCORDING TO PROPONENTS MANAGED CARE ATTEMPTS TO SAVE MONEY BY MAKING HEALTH CARE MORE EFFICIENT A BIG DIFFERENCE FOR CONSUMERS IS THAT THEY VISIT A DOCTOR OR HOSPITAL BELONGING TO A NETWORK INSTEAD OF HAVING UNLIMITED CHOICE MANAGED CARE IS A KEY PART OF PRESIDENT BILL CLINTON'S HEALTHCARE PLAN WHICH ENCOURAGES THE USE OF MANAGED CARE FOR ALL TYPES MEDICAL CLAIMS INCLUDING THOSE ARISING FROM CAR WRECKS ALTHOUGH MUCH OF THE HEALTHCARE MARKET HAS ALREADY MOVED TO MANAGED CARE ON ITS OWN THE AUTOINSURANCE MARKET HAS BEEN SLOWER TO MAKE THE SWITCH NOW THAT'S CHANGING COLORADO BEGAN ALLOWING CAR INSURERS TO OFFER MANAGED CARE AS AN OPTION IN LATE 1991 CONSUMERS INITIALLY BALKED BUT NOW THEY ARE EMBRACING THE NOTION STATE FARM MUTUAL AUTOMOBILE INSURANCE CO SAYS 5000 POLICYHOLDERS A MONTH ARE SIGNING UP FOR ITS MANAGEDCARE OPTION RECENT FIGURES SHOW THAT OF STATE FARM'S 700000 COLORADO POLICYHOLDERS 260000 HAVE CHOSEN TO PARTICIPATE WE WILL BE SEEING A LOT MORE USE OF THIS BY AUTO INSURERS IN THE FUTURE SAID DAVID HILL ASSISTANT GENERAL COUNSEL FOR STATE FARM IN BLOOMINGTON ILL THE TREND IS PARTICULARLY SIGNIFICANT BECAUSE CAR INSURANCE IS ONE OF THE BIGGEST EXPENSES FOR CONSUMERS ACCOUNTING FOR MORE THAN 80 BILLION A YEAR IN PREMIUMS ROBERT PLAN CORP A LYNBROOK NEW YORKBASED INSURANCE COMPANY KNOWN FOR INNOVATION RECENTLY APPLIED TO OFFER A MANAGEDCARE OPTION TO POLICYHOLDERS IN NEW JERSEY THE INTEREST OF ROBERT PLAN WILL SPUR OTHER INSURERS TO FOLLOW BELIEVES NEW JERSEY INSURANCE COMMISSIONER SAMUEL FORTUNATO THE TRADITONAL COMPANIES ARE A LOT LIKE LEMMINGS HE SAID IN AN INTERVIEW WITH THE NEWARK STAR LEDGER THEY DON'T DO SOMETHING UNTIL SOMEONE BREAKS THROUGH ALREADY PRUDENTIAL INSURANCE CO OF AMERICA IN NEWARK HAS ASSEMBLED A TEAM TO STUDY THE IDEA THE SAVINGS WHICH ONLY APPLIES TO THE PERSONAL INJURY PROTECTION COMPONENT OF AUTOMOBILE COVERAGE CAN BE WORTHWHILE IN DENVER THE STATE FARM POLICYHOLDER WHO OWNS A 1993 FORD TAURUS WOULD NORMALLY PAY 49120 FOR SIX MONTHS OF COVERAGE BY CHOOSING THE MANAGEDCARE OPTION THE POLICYHOLDER WOULD PAY 47660 A SAVINGS OF 1460 OR 3 IF THE POLICYHOLDER IS SERIOUSLY INJURED IN A CRASH THE PERSON COULD GO TO ANY EMERGENCY ROOM BUT ONCE THE INJURY HAS STABILIZED THE POLICYHOLDER WOULD SEEK TREATMENT FROM A DOCTOR OR HOSPITAL AFFILIATED WITH ETHIX SLOANS MANAGED CARE INC THE STATE'S LARGEST MANAGEDCARE PROVIDER CONSUMERS SEEM SATISFIED WITH THE TREATMENT I HAVEN'T HEARD ANY COMPLAINTS SAID A SPOKESMAN FOR THE COLORADO INSURANCE DEPARTMENT STATES WITH NOFAULT AUTOMOBILE INSURANCE LAWS SUCH AS NEW YORK FLORIDA AND PENNSYLVANIA ARE POSSIBLE CANDIDATES FOR MANAGED CARE IN CAR INSURANCE SAYS STATE FARM'S MR HILL IN NOFAULT STATES A DRIVER'S INSURANCE COMPANY PAYS FOR THE DRIVER'S MEDICAL BILLS REGARDLESS OF WHO'S TO BLAME FOR THE ACCIDENT 9312130110 931213 WILLIAMS COS TO BUILD TERMINAL TULSA OKLA WILLIAMS COS SAID ITS WILLIAMS PIPE LINE CO UNIT AND KOCH INDUSTRIES' KOCH REFINING CO AGREED TO BUILD A REFINED PRODUCTS TERMINAL NEXT TO WILLIAMS' ROSEVILLE MINN FACILITY WILLIAMS PIPE LINE WILL CONSTRUCT AND OPERATE THE FACILITY WHICH WILL SERVE KOCH'S CUSTOMERS THE FACILITY WILL HANDLE GASOLINE LOWSULFUR FUEL OIL AND JET FUEL BEGINNING IN LATE SUMMER 1994 KOCH IS A FUEL AND FUEL PRODUCTS SUPPLIER IN THE MIDWEST 9312130109 931213 WHO'S NEWS TIMBERLAND CO TIMBERLAND CO HAMPTON NH KEITH D MONDA 47 YEARS OLD FORMER EXECUTIVE VICE PRESIDENT OF FINANCE AND ADMINISTRATION AT J CREW GROUP INC WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS FOOTWEAR AND APPAREL COMPANY 9312130108 931213 REACHING OUT US HOPES TO MOVE MOSCOW INTO THE WEST THROUGH DEEPER TIES BUT COURTING RUSSIA'S ELITES IN MILITARY AND INDUSTRY ENTAILS SIGNIFICANT RISKS HELPING FUTURE IMPERIALISTS BY CARLA ANNE ROBBINS AND BARBARA ROSEWICZ STAFF REPORTERS OF THE WALL STREET JOURNAL FROM HIS ROOM IN MOSCOW'S PENTA HOTEL NASA CHIEF DANIEL GOLDIN COULD HEAR THE CRACK OF AUTOMATIC WEAPONS AND SEE THE SMOKE AS RUSSIAN HARDLINERS TRIED IN EARLY OCTOBER TO SEIZE THE OSTANKINO TELEVISION CENTER BUT WHEN HE PHONED BACK TO WASHINGTON HIS INSTRUCTIONS WERE UNAMBIGUOUS WE'RE BACKING BORIS YELTSIN AND UNLESS THERE IS A RISK TO PERSONAL SAFETY IT IS BUSINESSASUSUAL THE NEXT DAY AS THE WORLD WATCHED THE RUSSIAN WHITE HOUSE IN FLAMES MR GOLDIN CALMLY DISCUSSED TERMS FOR MAKING RUSSIA A PARTNER IN THE MULTIBILLION DOLLAR US SPACE STATION WE FEEL FOR THE RUSSIAN PEOPLE MR GOLDIN TOLD HIS HOSTS BUT WE'RE HERE TO TALK ABOUT THE FUTURE WASHINGTON'S DECISION TO DEAL IN THE RUSSIANS ON THE ORBITING SPACE STATION IS THE CORNERSTONE OF AN AMBITIOUS AND RISKY STRATEGY FOR BINDING RUSSIA TO THE US AND WESTERNSTYLE REFORMS BY BUILDING LINKS WITH ITS MILITARY SCIENTIFIC AND INDUSTRIAL ELITES WHILE PRESIDENT CLINTON AND HIS TOP ADVISERS HAVE UNFLINCHING CONFIDENCE IN MR YELTSIN AND HIS INNER CIRCLE THE REST OF THE RUSSIAN ELITE THEY SAY IS STILL UP FOR GRABS THE OCTOBER CRISIS CAME TO A FORMAL END YESTERDAY WHEN RUSSIAN VOTERS NARROWLY APPROVED A NEW CONSTITUTION AND ELECTED THE COUNTRY'S FIRST POSTSOVIET PARLIAMENT BUT EARLY RESULTS INDICATED THAT MR YELTSIN'S POLITICAL STRUGGLES MAY BE FAR FROM OVER ALONG WITH THE RUSSIAN LEADER'S REFORMMINDED CANDIDATES BOTH ULTRANATIONALISTS AND COMMUNISTS DID UNEXPECTEDLY WELL TOMORROW WITH THE RESULTS JUST TALLIED VICE PRESIDENT AL GORE ARRIVES IN MOSCOW WITH A PARADE OF TOP US OFFICIALS TO FURTHER THE US STRATEGY PUTTING THE FINISHING TOUCHES ON THE SPACESTATION DEAL AND UNVEILING OTHER MORE MODEST JOINT VENTURES IN SCIENCE TECHNOLOGY ENERGY AND THE ENVIRONMENT THE PENTAGON MEANWHILE IS HOPING TO CULTIVATE AND EDUCATE RUSSIA'S STILLPOWERFUL MILITARY ELITE PLANNING JOINT PEACEKEEPING EXERCISES WITH RUSSIAN TROOPS ON RUSSIAN SOIL NEXT YEAR RESTRICTIONS ON TECHNOLOGY SALES TO RUSSIA ARE BEING SCUTTLED AND PRESIDENT CLINTON FLIES TO MOSCOW IN JANUARY FOR A SUMMIT IN THE LONG RUN WHAT THE US HOPES TO GAIN OUT OF ALL THIS AND WHAT IT IS HOLDING OUT TO THE RUSSIANS IS NOTHING LESS THAN A NEW STRATEGIC PARTNERSHIP SAYS ASSISTANT SECRETARY OF DEFENSE GRAHAM ALLISON HE LIKENS THE EVOLVING FRIENDSHIP TO THOSE WE BUILT WITH JAPAN AND GERMANY AFTER WORLD WAR II BEHIND THE BROAD DECLARATIONS THE STRATEGY THE ADMINISTRATION HAS SETTLED ON IS A MIX OF COOPERATION SOCIALIZATION AND CASHONTHEBARREL PAYOFFS THE SPACESTATION DEAL FOR EXAMPLE WAS BOTH A REWARD TO RUSSIA'S AEROSPACE INDUSTRY FOR NOT SELLING SENSITIVE ROCKET TECHNOLOGY TO INDIA AND A CHANCE FOR THE US TO ENLIST RUSSIAN SCIENTISTS ABOUT THE EFFORT TO CONTROL THE FUTURE SPREAD OF DANGEROUS WEAPONS IF THE COURTSHIP PAYS OFF THESE AND OTHER ELITES WILL BE WEDDED TO US VALUES IF THE GAMBIT FAILS THE US COULD FIND ITSELF CAUGHT IN AN EMBRACE THAT WILL BE DIFFICULT AND COSTLY TO UNDO FOR PRESIDENT CLINTON WHO ALREADY HAS INVESTED PERSONAL PRESTIGE AND ABOUT 2 BILLION IN AID TO RUSSIA THE NEW STRATEGY RAISES THE STAKES IF MR YELTSIN FALLS THE US COULD LOSE THE SPACE STATION IN WHICH AMERICAN TAXPAYERS SO FAR HAVE SUNK 10 BILLION THE US COULD ALSO GIVE THE RUSSIAN ARMY THE TRAINING AND TOOLS FOR HARASSING ITS NEIGHBORS SENSITIVE HIGH TECHNOLOGY WHETHER THROUGH AVARICE OR INATTENTION COULD WIND UP SLIPPING OUT RUSSIA'S BACKDOOR TO HOSTILE REGIMES AND WHAT IF MR YELTSIN SURVIVES HIS CURRENT TRAVAILS BUT TURNS OUT TO BE LESS THAN THE DEMOCRAT OR THE RELIABLE PARTNER THAT THE US HOPED WITH SO MUCH INVESTED IN BOTH RUSSIA AND ITS LEADER THE US MAY BE TEMPTED TO PULL ITS PUNCHES REPUBLICAN SEN RICHARD LUGAR OF INDIANA A LONGTIME CHAMPION OF RUSSIAN AID WORRIES THAT THAT ALREADY MAY HAVE HAPPENED POINTING TO A RECENT US DECISION TO PUT OFF PLANS FOR EXPANDING THE NORTH ATLANTIC TREATY ORGANIZATION TO EASTERN EUROPE RATHER THAN RISK ANTAGONIZING MOSCOW WHAT APPEARS TO BE DRIVING THE POLICY FAR TOO MUCH IS THE RUSSIAN VIEW OF WHAT WE OUGHT TO BE DOING RATHER THAN OUR VIEW OF WHAT WE NEED HE WARNS STROBE TALBOTT THE PRESIDENT'S TOP ADVISER ON RUSSIA AND THE ARCHITECT OF THE STRATEGY SAYS THAT US SUPPORT FOR MR YELTSIN IS NOT UNCONDITIONAL BUT CONCEDES THERE ARE CONSIDERABLE RISKS IS THERE TOTAL CERTAINTY THAT THE RELATIONSHIP WILL WORK OUT HE ASKS OF COURSE NOT BUT WE HAVE TO FIND WAYS OF MAKING CONCRETE THIS TALK ABOUT PARTNERSHIP WE CAN'T JUST KEEP MOUTHING THE WORDS US BUSINESSES MAY BENEFIT FROM WASHINGTON'S EMBRACE PRESIDENT CLINTON HAS PRESSED MR YELTSIN TO CLEAR AWAY OBSTACLES FOR US INVESTORS AND THE WHITE HOUSE IS HOPING THAT THIS WEEK RUSSIA WILL SIGN A LONGAWAITED 10 BILLION TO 12 BILLION CONTRACT WITH A CONSORTIUM THAT INCLUDES USBASED MARATHON OIL CO AND MCDERMOTT INTERNATIONAL INC ALONG WITH MITSUI & CO MITSUBISHI CORP AND A UNIT OF ROYAL DUTCH/SHELL GROUP TO DEVELOP HUGE OIL AND GAS DEPOSITS OFF RUSSIA'S SAKHALIN ISLAND MR GORE AND RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN COCHAIRMEN OF A COMMISSION TO FOSTER CLOSER ECONOMIC SCIENTIFIC AND TECHNICAL RELATIONS WILL ANNOUNCE OTHER MORE MODEST COMMERCIAL PROJECTS DURING THE VISIT NOWHERE WOULD THE TWO COUNTRIES BE MORE CONCRETELY INTERLOCKED THAN IF THEY BUILD AND INHABIT A SPACE STATION ORBITING 220 MILES ABOVE EARTH THE PROPOSED SPACESTATION COLLABORATION OFFERS POTENTIAL ADVANTAGES FOR NEARLY EVERY CONCERNED CONSTITUENCY IN WASHINGTON THE FOREIGNPOLICY TEAM SEES IT AS A WAY TO ADVANCE THE USRUSSIAN PARTNERSHIP FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION MAKING THE SPACE STATION PART OF THE GOVERNMENT'S RUSSIA STRATEGY IS A WAY TO SAVE A TROUBLED PROJECT WHICH ALREADY HAD GONE THROUGH A HALF DOZEN DESIGNS OFFICIALS INVOLVED IN CONTROLLING THE SPREAD OF WEAPONS SEE THE PLAN AS A WAY TO GIVE RUSSIAN INDUSTRIALISTS INCENTIVES TO ADHERE TO WESTERN NONPROLIFERATION RULES THE TWO RUSSIAN COMPANIES WITH THE BIGGEST STAKE IN A JOINT SPACE STATION NPO ENERGIA AND KRUNICHEV ALSO BUILD MILITARY SPACECRAFT AND MISSILE PARTS RUSSIA ALSO BRINGS VALUABLE EXPERIENCE TO THE SPACE PROJECT RUSSIA'S OWN SPACE STATION THE MIR HAS BEEN IN ORBIT SINCE 1986 ACCORDING TO CURRENT ESTIMATES THE NEW RUSSIANAMERICAN STATION WILL BE 25 LARGER THAN THE PLANNED US STATION WITH NEARLY 60 MORE POWER AND ROOM FOR SIX PASSENGERS INSTEAD OF FOUR MOREOVER THE STATION WHICH WILL BE ASSEMBLED IN ORBIT COULD BE COMPLETED TWO YEARS EARLIER IN 2001 FOR A TOTAL SAVINGS OF ABOUT 2 BILLION OFF THE 19 BILLION THE US WOULD HAVE TO PAY TO COMPLETE THE PROJECT DESPITE THESE BENEFITS THE COLLABORATION MAKES SOME PROJECT SUPPORTERS NERVOUS IF YOU LOOK AT THE WORSTCASE SCENARIO AND TWO OR THREE YEARS DOWN THE ROAD RUSSIA DROPS OUT FOR WHATEVER REASON YOU HAVE TO START ALL OVER SAYS NICHOLAS JOHNSON AN EXPERT ON RUSSIAN SPACE ACTIVITIES AND SENIOR SCIENTIST AT KAMAN SCIENCES CORP A RESEARCH AND DEVELOPMENT COMPANY IN COLORADO SPRINGS COLO MEANWHILE SOME LAWMAKERS WORRY THAT THERE COULD BE HIDDEN EXPENSES THAT POP UP ALONG THE WAY SUCH AS THE COSTS FOR REPAIRING RUSSIA'S DETERIORATING BAIKONUR LAUNCH PAD IN KAZAKHSTAN US OFFICIALS SAY THAT EVEN IN THE WORSTCASE SCENARIOS THEY COULD STILL BUY OUT RUSSIAN COMPONENTS OR REPLACE THEM THOUGH THAT WOULD DELAY THE PROJECT AND EAT UP ANY COST SAVINGS BUT OF ALL OF RUSSIA'S ELITES THE STILLPOWERFUL MILITARY IS THE ONE THE CLINTON ADMINISTRATION IS MOST INTERESTED IN COOPERATING WITH AND ULTIMATELY COOPTING THE MILITARY COULD SCUTTLE RUSSIANREFORM EFFORTS OR WORSEN INSTABILITIES IN THE NEIGHBORING REPUBLICS WHICH WERE PART OF THE SOVIET STATE UNTIL TWO YEARS AGO TO GET ON FRIENDLIER TERMS WITH RUSSIA'S MILITARY BRASS THE US IS PLANNING JOINT PEACEKEEPING EXERCISES THIS SPRING SOMEWHERE IN RUSSIA THE US ARMY 3RD INFANTRY DIVISION MECHANIZED BASED IN GERMANY AND RUSSIA'S 27TH MOTORIZED RIFLE DIVISION LATE OF EAST GERMANY WILL EACH SEND BETWEEN 500 AND 700 TROOPS TO THE WEEKLONG EXERCISE PENTAGON OFFICIALS ARE ENTHUSIASTIC WHEN THE RUSSIANS RECENTLY SUGGESTED THEY MIGHT NOT BE ABLE TO PICK UP THEIR FULL SHARE OF THE TAB THEIR US COUNTERPARTS SAID NOT TO WORRY SOME DEAL COULD BE WORKED OUT US OFFICIALS SAY THEY MAY SIMULATE A SOMALIALIKE PEACEMAKING EXERCISE IN WHICH THE TROOPS WILL HAVE TO SEPARATE AND DISARM WARRING PARTIES OR A POSTSETTLEMENT PEACEKEEPING EXERCISE CLOSER TO WHAT THE TWO ARMIES COULD FACE TOGETHER IN BOSNIA AS THE HOSTS THE RUSSIANS COULD ALSO CHOOSE A SCENARIO CLOSER TO HOME THEY HAVE PLENTY FROM THEIR OWN BORDERS SAYS A SENIOR US MILITARY OFFICER AT THE SAME TIME US OFFICIALS ARE CULTIVATING PERSONAL RELATIONSHIPS WITH KEY MEMBERS OF RUSSIA'S MILITARY ELITE IN FEBRUARY ARMY CHIEF OF STAFF GEN GORDON SULLIVAN INVITED HIS COUNTERPART RUSSIAN GEN COL VLADIMIR SEMENOV TO THE US ARMY'S NATIONAL TRAINING CENTER AT FT IRWIN CALIF TO OBSERVE WHAT IN A LESS FRIENDLY TIME WERE CALLED RED TEAM EXERCISES HIGHTECH WAR GAMES BETWEEN TWO TANK BATTALIONS GEN SEMENOV ALSO MET WITH DEFENSE SECRETARY LES ASPIN WHO IMMEDIATELY SOUGHT HIS ADVICE ON HOW TO DELIVER RELIEF SUPPLIES DURING WINTER IN BOSNIA GEN SULLIVAN MADE A RETURN VISIT IN SEPTEMBER JUST A FEW DAYS BEFORE MR YELTSIN'S SHOWDOWN WITH THE PARLIAMENT A TOP US OFFICIAL ACKNOWLEDGES THAT THERE IS A CHANCE WE COULD END UP TRAINING A NEW GENERATION OF RUSSIAN IMPERIALISTS AND CRITICS CONTEND THAT THE JOINT EXERCISES COULD GIVE AN AMERICAN IMPRIMATUR FOR FUTURE ADVENTURES BY THE RUSSIANS UNDER THE GUISE OF PEACEMAKING IT'S OUTRAGEOUS SAYS PAUL GOBLE AN EXPERT ON THE REGION AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE WE'VE GOT A RUSSIAN MILITARY THROWING ITS WEIGHT AROUND WITH ITS NEIGHBORS GIVING MIG29S TO ABKHAZ SEPARATISTS IN GEORGIA AND INCITING SECESSIONISTS IN MOLDOVA AND THE US IS PLANNING TO TRAIN WITH THAT MILITARY DO YOU KNOW HOW THAT WILL BE READ IN UKRAINE AND ELSEWHERE THEY'LL BE TERRIFIED PRIVATELY OFFICIALS SAY THE PROBLEM IS REAL BUT ARGUE THAT THE BEST HOPE FOR STEERING THE RUSSIAN MILITARY IN THE RIGHT DIRECTION IS BY WORKING CLOSELY WITH THEM RATHER THAN ISOLATING THEM THE SENSITIVITIES OF RUSSIA'S SECURITY ELITE WERE ALSO A KEY FACTOR IN THE US DECISION TO POSTPONE ANY PLANS FOR LETTING THE EASTERN EUROPEANS INTO NATOOFFERING MEMBERSHIP IN THEORY TO ALL THE FORMER WARSAW PACT NATIONS BUT PUTTING OFF ANY DECISION ON CRITERIA OR TIMING INTO THE DISTANT FUTURE WHEN SECRETARY OF STATE WARREN CHRISTOPHER EXPLAINED THE PLAN ON AN OCTOBER VISIT TO MOSCOW THE RUSSIAN PRESIDENT REPORTEDLY THREW UP HIS HANDS AND DECLARED GENIAL'NO OR GENIUS THE EAST EUROPEANS WERE LESS IMPRESSED WHILE PRESERVING PRESENTDAY NATO THE CLINTON TEAM IS MOVING FULLTILT TO DISMANTLE ANOTHER COLD WAR INSTITUTIONCOCOM THE COORDINATING COMMITTEE ON MULTILATERAL EXPORT CONTROLS IT IS THE WEST'S HIGHTECH EXPORTERS' CLUB WHICH BUILT UP A THICKET OF RULES TO KEEP MILITARILY USEFUL TECHNOLOGIES AWAY FROM THE SOVIETS BY DISBANDING COCOM AND MAKING RUSSIA A CHARTER MEMBER IN A NEW REGIME THE US AND ITS ALLIES ARE OPENING THE WAY FOR RUSSIA TO ACQUIRE SOPHISTICATED COMPUTER AND TELECOMMUNICATIONS GEAR THAT HAS LONG BEEN DENIED THEM THE APPROACH REFLECTS BOTH A DESIRE TO BUILD A CLOSER PARTNERSHIP WITH RUSSIA AS WELL AS A SHIFT IN AMERICAN STRATEGIC CONCERNS AWAY FROM THE EASTWEST DIVIDE SAYS UNDERSECRETARY OF STATE LYNN E DAVIS THE REAL THREAT NOW COMES FROM COUNTRIES LIKE IRAN IRAQ NORTH KOREA AND LIBYA THE NEW TECHNOLOGY CLUB WILL ALLOW MEMBERS INCLUDING RUSSIA TO BUY ALL BUT THE MOST SUPERSENSITIVE TECHNOLOGY STEALTH TECHNOLOGY FOR EXAMPLE WILL STILL BE ON A PROSCRIBED LIST BUT BEFORE ANY COUNTRY CAN BECOME A MEMBER IT MUST FIRST SIGN ON TO INTERNATIONAL NONPROLIFERATION NORMS AND BE JUDGED TO HAVE EFFECTIVE EXPORT CONTROLS IN PLACE RUSSIA WITH A LITTLE HELP FROM THE US WILL BE IMMEDIATELY ELIGIBLE FOR MEMBERSHIP OFFICIALS SAY WHILE CHINA WILL NOT MEMBERS ALSO WILL HAVE TO INFORM THE ORGANIZATION OF ANY PLANNED SALES OF WEAPONRY OR SENSITIVE DUAL USE TECHNOLOGY TO ANY COUNTRY OUTSIDE THE REGIME LISTS OF WHAT THE RUSSIANS CAN ACQUIRE ARE BEING DEBATED AMONG THE ALLIES AND INSIDE THE US GOVERNMENT BUT OFFICIALS SAY THAT MOSCOW WILL LIKELY HAVE BROAD ACCESS TO SUPERFAST COMPUTERS AS WELL AS HIGHSPEED HIGHVOLUME FIBEROPTIC AND CELLULARPHONE SYSTEMS THE LATTER HAS BEEN A PARTICULARLY SENSITIVE ISSUE BETWEEN THE TWO COUNTRIES THE RUSSIANS ARGUE PLAUSIBLY THAT IF THEY ARE TO REFORM THEIR ECONOMY AND ATTRACT FOREIGN INVESTMENT THEY MUST FIRST UPDATE THEIR CONGESTED 1950S PHONE NETWORK BUT THE US NATIONAL SECURITY AGENCY IS WORRIED THAT SWITCHING TO HIGHVOLUME HIGHSPEED UNDERGROUND CABLES WILL HURT ITS ABILITY TO EAVESDROP ON RUSSIA WHOSE NUCLEAR WEAPONS ARGUE FOR CONTINUED WATCHFULNESS US OFFICIALS ACKNOWLEDGE SOME RISKS BUT POINT OUT THAT AS A MEMBER MOSCOW WILL BE OBLIGED TO INFORM OTHER MEMBERS OF ITS PLANS TO SELL SENSITIVE TECHNOLOGY AND WEAPONRY RIGHT NOW IF THE RUSSIANS WANT TO SELL A SUBMARINE TO IRAN OR A CIVILIAN REACTOR WE HAVE BARELY A SAY IN THE MATTER NOTES ANOTHER OFFICIAL AS A RESULT OF YESTERDAY'S ELECTIONS THE US WILL SOON HAVE ANOTHER IMPORTANT NEW ELITE TO COURT BUT EARLY RESULTS SUGGESTED THAT THE NEW RUSSIAN LEGISLATURE MAY NOT BE ANY MORE COMMITTED TO REFORM OR ANY MORE MALLEABLE FOR MR YELTSIN INDEED WITH RUSSIAN ULTRANATIONALISTS AND COMMUNISTS APPARENTLY RUNNING WELL THE NEW PARLIAMENT IS UNLIKELY TO SEE THE US AS A NATURAL PARTNER OR ALLY EVEN BEFORE THE VOTE PRESIDENT CLINTON'S AIDES WERE DISCUSSING HOW MUCH ATTENTION THEY PLAN TO LAVISH ON THE NEW PARLIAMENT WHEN MR CLINTON VISITS MOSCOW NEXT MONTH 9312130107 931213 GREEN POINT BID TO ISSUE STOCK WINS APPROVAL BUT PLAN COULD BE VOIDED IF NEW YORK REGULATORS FIND ANY IRREGULARITIES BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GREEN POINT SAVINGS BANK DEPOSITORS APPROVED A PLAN TO CONVERT FROM A MUTUAL SAVINGS BANK TO STOCK OWNERSHIP BUT STATE REGULATORS WARNED THEY WOULD SCUTTLE THE PLAN IF THEY UNCOVER PROBLEMS IN THE WAY THE PLAN WAS PROMOTED TO DEPOSITORS GREEN POINT SAID THE CONVERSION PLAN WAS APPROVED BY MORE THAN 75 OF THE VOTES CAST AT A DEPOSITORS' MEETING FRIDAY THE BANK WITH 65 BILLION IN ASSETS IS ONE OF THE LARGEST MUTUAL SAVINGS INSTITUTIONS THAT HADN'T YET CONVERTED TO STOCK OWNERSHIP FORM MUTUAL SAVINGS BANKS ARE OWNED BY THEIR DEPOSITORS HOWEVER THE NEW YORK STATE BANKING DEPARTMENT PLANS TO HOLD HEARINGS TO DETERMINE WHETHER GREEN POINT'S DISCLOSURES TO DEPOSITORS ABOUT THE CONVERSION PLAN WERE FAIR ADEQUATE AND COMPLIED WITH STATE LAW IN A LETTER TO THE BANK THE DEPARTMENT SAID THAT UNLESS ITS CONCERNS WERE RESOLVED IT PLANS TO ANNUL THE RESULTS OF FRIDAY'S VOTE AND FORCE GREEN POINT TO HOLD ANOTHER MEETING A GREEN POINT SPOKESMAN SAID REGULATORS HAD RAISED QUESTIONS ABOUT THE INDEPENDENT APPRAISAL OF GREEN POINT'S VALUE AS REPORTED IN THE DISCLOSURE MATERIALS IN THE MATERIALS GREEN POINT'S VALUE WAS PUT AT 595 MILLION TO 804 MILLION ACCORDING TO AN APPRAISAL BY RP FINANCIAL AN INDEPENDENT APPRAISER IN ARLINGTON VA THE GREEN POINT SPOKESMAN SAID WE BELIEVE THE DISCLOSURES HAVE BEEN ADEQUATE AND WE'VE ACTED RESPONSIBLY GREEN POINT HAS BEEN CRITICIZED BECAUSE ITS OFFICERS AND TRUSTEES STAND TO REAP SUBSTANTIAL FINANCIAL GAINS FROM THE CONVERSION THEY WILL BE BUYING SHARES AT BARGAIN PRICES AND WILL RECEIVE LUCRATIVE STOCK OPTIONS AFTER THE VOTE FRIDAY THE BANK SAID THAT IN RESPONSE TO SENTIMENTS EXPRESSED BY SOME DEPOSITORS AND ON THE BASIS OF CERTAIN PROPOSED AMENDMENTS IN STATE LAW IT WILL SET UP A SPECIAL INDEPENDENT COMMITTEE TO REVIEW TRUSTEE COMPENSATION AFTER THE CONVERSION THE PLAN CALLS FOR GREEN POINT TO ISSUE AS MUCH AS 21 MILLION IN STOCK TO OFFICERS AND TRUSTEES SEVEN LAWSUITS HAVE BEEN FILED AGAINST THE BANK AND ITS TRUSTEES MOST OF THEM QUESTIONING GREEN POINT'S DECISION TO REJECT A 250 MILLION TAKEOVER BID FROM REPUBLIC NEW YORK CORP IN NOVEMBER REPUBLIC WITHDREW ITS BID AFTER REGULATORS DEEMED IT ILLEGAL LATE LAST MONTH GREEN POINT SOUGHT TO GARNER DEPOSITOR SUPPORT FOR ITS CONVERSION PLAN BY PROPOSING TO SPEND 100 MILLION ON CHARITABLE VENTURES AND TO OFFER ABOVEMARKET INTEREST RATES TO CERTAIN DEPOSITORS ON FRIDAY GREEN POINT DEFENDED ITS CONVERSION PLAN ARGUING THAT IT WOULD LEAD TO AN INFUSION OF UP TO 758 MILLION IN NEW CAPITAL AND BOLSTER THE BANK'S OPERATIONS AS PART OF THE CONVERSION GREEN POINT PLANS TO SELL 537 MILLION SHARES IN A PRICE RANGE OF 1110 TO 15 SHARES WILL BE OFFERED TO THE BANK'S EMPLOYEE STOCK OWNERSHIP PLAN TO EXISTING DEPOSITORS TO OFFICERS AND TRUSTEES AND TO INSTITUTIONAL AND OTHER INVESTORS CRITICS SAY THAT MANY DEPOSITORS TYPICALLY DON'T BUY SHARES IN STOCKCONVERSION DEALS WHILE MANAGEMENT AND TRUSTEES OFTEN REAP BIG GAINS ON THEIR PURCHASES ESPECIALLY WHEN SHARE PRICES RISE 9312130106 931213 INTERNATIONAL WASHINGTON INSIGHT GORE'S SUCCESS IN FOREIGNPOLICY ROLE DEPENDS ON COMMITMENT FROM CLINTON BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON VICE PRESIDENT AL GORE IS DUE TO ARRIVE IN MOSCOW TOMORROW WITH A NEW MISSION AS PRESIDENT CLINTON'S SURROGATE ON FOREIGN POLICY THE UNOFFICIAL APPOINTMENT IS A RECOGNITION OF BOTH MR GORE'S STRENGTHS AND THE WEAKNESSES OF THE REST OF THE PRESIDENT'S FOREIGNPOLICY TEAM BUT WHETHER POLICY ACTUALLY IMPROVES WILL DEPEND ON WHETHER MR CLINTON USES THE VICE PRESIDENT TO AVOID HIS OWN FOREIGNPOLICY RESPONSIBILITIES OR AS A WAY TO DRAW HIMSELF IN HISTORIAN MICHAEL BESCHLOSS SAYS THAT VICE PRESIDENTS HAVE TRADITIONALLY HAD A TOUGH TIME WITH HIGHPROFILE ROLES EVEN WHEN THEY DO A GOOD JOB THEY'RE DAMNED FOR UPSTAGING THE PRESIDENT HE SAYS BUT HE BELIEVES THAT MR GORE WHO DEFTLY HANDLED BOTH THE NAFTA DEBATE AND THE REINVENTING GOVERNMENT INITIATIVE HAS A BETTER CHANCE THAN MOST PRESIDENT CLINTON IS CLEARLY COMFORTABLE WITH DELEGATING RESPONSIBILITIES TO MR GORE HE SAYS AND GORE IS VERY CAREFUL NOT TO GET TOO FAR OUT AHEAD DESPITE ALL THE RECENT HYPE A WEEK OF WHITE HOUSE SPIN PLAYING UP MR GORE'S ROLE WAS TONED DOWN AFTER AIDES TO OTHER FOREIGN POLICYMAKERS COMPLAINED NO ONE IS CERTAIN HOW FAR MR GORE'S RESPONSIBILITIES WILL EXTEND AT A MINIMUM OFFICIALS SAY HE WILL TRY TO ARTICULATE THE ADMINISTRATION'S INCHOATE FOREIGNPOLICY GOALS AND RALLY PUBLIC SUPPORT A BIGGER QUESTION IS WHETHER MR GORE CAN HELP SOLVE THE ADMINISTRATION'S CONCEPTUAL AND MANAGEMENT PROBLEMS THE LONG AND RAMBLING MEETINGS THE CONSTANT REVERSALS AND THE INATTENTION TO DETAIL THAT CONTRIBUTED TO THE DEBACLES IN BOSNIA SOMALIA AND HAITI MR GORE IS AN ACHIEVER SAYS ONE SENIOR ADMINISTRATION OFFICIAL AND WITH HIS NEW RESPONSIBILITIES HE'S NOT LIKELY TO TOLERATE SLOPPY OPERATIONS SKEPTICS NOTE THAT MR GORE IS ALREADY A MEMBER OF THE NATIONAL SECURITY COUNCIL AND HIS OWN TOP FOREIGN POLICY ADVISER LEON FUERTH SITS ON THE DEPUTIES COMMITTEE A SECONDLEVEL FOREIGNPOLICY COMMITTEE THAT DROPPED THE BALL SPECTACULARLY ON SOMALIA AND HAITI THE MOST IMPORTANT QUESTION IS WHETHER UNDER GORE THE ADMINISTRATION CAN BETTER FIGURE OUT WHAT IT STANDS FOR AND WHAT IT REALLY WANTS TO DO IN FOREIGN POLICY SAYS A EUROPEAN DIPLOMAT MR GORE UNLIKE HIS BOSS HAS A HISTORY OF STRONGLY HELD FOREIGNPOLICY BELIEFS WHILE IN THE SENATE HE CHASTISED THE BUSH ADMINISTRATION FOR NOT DOING MORE TO RESCUE THE KURDS FOR FAILING TO STOP THE GENOCIDE IN BOSNIA AND FOR CODDLING DICTATORS SUCH AS SADDAM HUSSEIN HE ALSO IS AN UNFLINCHING SUPPORTER OF ISRAEL HOW THOSE BELIEFS WILL JIBE WITH THE ADMINISTRATION'S NEW LESSIDEALISTIC OUTLOOK ISN'T CLEAR WITH WINTER BEARING DOWN ON BOSNIA AND NEW OVERTURES BEING MADE TO SYRIA'S HAFEZ AL ASSAD A TEST COULD COME SOON BUT NO MATTER HOW GOOD A JOB MR GORE DOES HE STILL CAN'T REPLACE MR CLINTON IN THE FOREIGNPOLICY PROCESS ONLY THE PRESIDENT CAN ESTABLISH PRIORITIES SET THE PACE RESOLVE INTERAGENCY DISPUTES AND ULTIMATELY DEFINE A FOREIGNPOLICY VISION BY SHEDDING SOME OF THESE RESPONSIBILITIES MR CLINTON COULD END UP SENDING THE WORST POSSIBLE MESSAGE THAT HE DOESN'T CARE ABOUT FOREIGN POLICY THE MUCHPUMMELED SECRETARY OF STATE WARREN CHRISTOPHER TOLD MR CLINTON AS MUCH IN MIDOCTOBER MR CHRISTOPHER ASKED THE PRESIDENT TO COMMIT TO A WEEKLY MEETING WITH HIS TOP FOREIGNPOLICY ADVISERS WHILE THE PRESIDENT AGREED THE SCHEDULE HAS YET TO BE REGULARIZED THE DAILY INTELLIGENCE BRIEFINGS AREN'T DAILY AND USUALLY ARE RUSHED AND AIDES SAY THAT THEY STILL ARE LOOKING FOR A WAY TO CARVE OUT MORE QUALITY TIME BETWEEN THE PRESIDENT AND NATIONAL SECURITY ADVISER ANTHONY LAKE AT LEAST ONE ADMINISTRATION OPTIMIST IS HOPING THAT MR GORE'S ENTHUSIASM FOR FOREIGN POLICY WILL RUB OFF ON THE PRESIDENT MESSRS CLINTON AND GORE DO HAVE A WEEKLY LUNCH DATE AND EVENTS MAY GRAB THE PRESIDENT'S ATTENTION AND ENTHUSIASM AS WELL AFTER A YEAR OF ALMOST NO FOREIGN TRAVEL MR CLINTON ALREADY HAS THREE EUROPEAN TRIPS SCHEDULED FOR 1994 THE NATO SUMMIT THE DDAY ANNIVERSARY AND A GROUP OF SEVEN SUMMIT AND MAY ADD A FOURTH AS A TRUE POLICY WONK AIDES SAY MR CLINTON WOULD NEVER GO TO SUCH MEETINGS UNPREPARED 9312130105 931213 FOREIGN EXCHANGE BUNDESBANK POLICY MAKERS MAY CUT KEY RATES DURING YEAR'S FINAL MEETING BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK AS TRADING WINDS DOWN FOR THE HOLIDAYS MARKET PARTICIPANTS SAY ONLY A SURPRISE FROM THE BUNDESBANK THIS WEEK IS LIKELY TO SHAKE THE CURRENCY MARKETS' LETHARGY THE GERMAN CENTRAL BANK'S POLICYMAKING CENTRAL BANK COUNCIL MEETS THURSDAY FOR THE LAST TIME THIS YEAR AND TRADERS SAY THE DOLLARMARK EXCHANGE RATE DOESN'T REFLECT EXPECTATIONS OF A POLICY CHANGE SINCE THE BUNDESBANK ON DEC 2 FIXED RATES FOR FIVE WEEKS ON ITS SECURITIES REPURCHASE AGREEMENTS DEALERS HAVE BEEN EXPECTING A STEADY MONETARY POLICY BUT ECONOMISTS SAY THERE'S A GOOD CHANCE THE CENTRAL BANK WILL ANNOUNCE A CUT OF HALF A PERCENTAGE POINT IN ITS DISCOUNT AND LOMBARD RATES WHICH SERVE RESPECTIVELY AS THE FLOOR AND CEILING FOR MONEYMARKET RATES AND A FEW SAY THE BANK MAY LOWER ITS TARGET FOR MONEYSUPPLY GROWTH IF IT CUTS RATES THIS WEEK THE BANK WOULD BE ABLE TO NUDGE THE REPO RATE LOWER IN JANUARY THEY SAY THAT'S BECAUSE THE RATE AT 6 IS JUST ONEQUARTER OF A PERCENTAGE POINT ABOVE THE DISCOUNT RATE THE BUNDESBANK ALSO MAY CUT RATES TO GIVE ITS COUNTERPARTS THE OPPORTUNITY TO EASE WITHOUT SACRIFICING THEIR CURRENCIES SAYS JOHN ROTHFIELD CURRENCY ANALYST AT FIRST NATIONAL BANK OF CHICAGO EUROPEAN CROSSRATES HAVE STABILIZED SINCE THE BUNDESBANK LAST CUT HEADLINE RATES MR ROTHFIELD NOTES BUT WE ARE PROBABLY AT AN END OF THE BENEFITS ACCRUING FROM THE OCT 21 RATE CUT HE SAYS A CUT IN GERMAN RATES WOULD HELP THE DOLLAR BECAUSE IT WOULD NARROW THE GAP BETWEEN GERMAN AND US INTEREST RATES MINIMIZING THE APPEAL OF MARKDENOMINATED ASSETS FRIDAY IN NEW YORK THE DOLLAR CLOSED AT 16965 MARKS AND 10920 YEN COMPARED WITH 17047 MARKS AND 10865 YEN THURSDAY ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10905 YEN AND AT 16945 MARKS BUT CURRENCY PLAYERS MIGHT NOT BE IMPRESSED ANALYSTS SAY BECAUSE THEY EXPECT GERMAN RATES TO FALL A BIGGER JOLT WOULD COME FROM A CHANGE IN THE BUNDESBANK'S TARGET BAND FOR MONEYSUPPLY GROWTH THEY SAY WHICH TYPICALLY IS REVIEWED AT YEAR'S END THE CURRENT TARGET IS 45 TO 65 ANNUAL EXPANSION MOST ECONOMISTS CONSIDER A SHIFT LESS LIKELY THAN A RATE CUT THEY SHOULD SEE SLOWER MONEY GROWTH NEXT YEAR THAN THIS YEAR SAYS SANDY BATTEN SENIOR ECONOMIST AT CITIBANK BUT TO LOWER THE RANGE WOULD INCREASE THE ODDS OF NOT HITTING IT SOME SAY A MODEST ADJUSTMENT IS POSSIBLE BUT ONE BUNDESBANK WATCHER SAYS CURRENCY PLAYERS MAY BE IN FOR A SURPRISE WE CAN'T DISCOUNT THE POSSIBILITY THAT THEY MOVE BACK TO THE RANGE THEY HAD IN PLACE BEFORE REUNIFICATION 35 SAYS MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO IN LONDON THAT WOULD BOOST THE DOLLAR BECAUSE IT WOULD SIGNAL SHARPLY LOWER RATES TO COME HE SAYS MR O'HANLON'S ARGUMENT THE BUNDESBANK WANTS TO SPUR GERMAN ECONOMIC GROWTH BECAUSE MORE TAX REVENUES AND LESS UNEMPLOYMENTRELATED SPENDING WILL SHRINK THE BUDGET DEFICIT WITH INFLATION FALLING HE PROJECTS A 27 ANNUAL RATE BY THE END OF THE FIRST QUARTER IT'S NOW 36 THE CENTRAL BANK HAS THE FLEXIBILITY TO CUT INTEREST RATES BUT IT MUST FIRST SIGNAL THE FINANCIAL MARKETS THAT ITS STAND AGAINST INFLATION HASN'T SOFTENED A KEY WAY TO DO THAT MR O'HANLON SAYS IS TO LOWER ITS TARGET CORRIDOR FOR MONEYSUPPLY GROWTH 9312130104 931213 ABREAST OF THE MARKET A ROBUST 1994 ECONOMY COULD HURT STOCKS SOME SAY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK MARKET INVESTORS LOVE A STRONGER ECONOMY RIGHT NOT NECESSARILY IF THE ECONOMY CONTINUES BOUNDING AHEAD IN THE NEW YEAR WITH THE VIGOR OF THE PAST FEW MONTHS STOCK MARKET INVESTORS MAY BE LICKING DEEP WOUNDS IN EARLY 1994 SOME ECONOMISTS AND MARKET STRATEGISTS PREDICT THAT'S BECAUSE A ROBUST ECONOMY PROBABLY WOULD DRIVE UP SHORTTERM INTEREST RATES CAUSING INVESTORS TO DUMP STOCKS IN FAVOR OF THE IMPROVING YIELDS ON SAFER FIXEDINCOME INVESTMENTS IF THE ECONOMIC MOMENTUM CONTINUES THE REALITY OF RISING SHORTTERM RATES WILL BEGIN A CORRECTION OF A TRADITIONAL SORT SAYS ROBERT J BARBERA AN ECONOMIST AT LEHMAN BROTHERS IT'LL BE A CORRECTION OF 10 TO 15 NOT A BEAR MARKET BUT 15 FROM NOW NOBODY WILL BE SMILING LAST YEAR THE ECONOMY SHOWED A SIMILAR BURST IN THE FOURTH QUARTER BUT THE MOMENTUM FIZZLED EARLY IN THE NEW YEAR KEEPING INTEREST RATES LOW AND PROVIDING ROOM FOR FURTHER GAINS IN STOCKS MR BARBERA SAYS LAST YEAR'S LATE ECONOMIC SURGE WAS LARGELY IN RESPONSE TO PRESIDENT CLINTON'S ELECTION AND THAT THE EUPHORIA WAS FOLLOWED BY CONCERN ABOUT HIS PLAN TO RAISE TAXES BY CONTRAST THE CURRENT ECONOMIC MOMENTUM RESULTS LARGELY FROM THE EFFECTS OF THE PROLONGED SLIDE IN INTEREST RATES AND THAT MOMENTUM ALMOST CERTAINLY WILL CONTINUE INTO THE NEW YEAR AND PROBABLY ACCELERATE MR BARBERA SAYS WHEN YOU HAVE A SHARP DECLINE IN RATES AND AN ECONOMIC ACCELERATION THE MOMENTUM IS USUALLY SELFSUSTAINING HE SAYS MR BARBERA URGES INVESTORS TO BE CAUTIOUS OVER THE NEXT SEVERAL MONTHS HE POINTS OUT THAT THE STOCK MARKET HAS CLIMBED WITHOUT A SEVERE CORRECTION FOR 37 MONTHS NOW HE FORESEES THE FEDERAL RESERVE'S RESPONDING TO THE ECONOMY'S SURGE BY RAISING SHORTTERM INTEREST RATES THAT WOULD SLOW A PRIMARY ENGINE OF THE STOCK MARKET'S CURRENT STRENGTH EASY MONEY RISING SHORTRATES WILL BE ALL THE MORE DETRIMENTAL BECAUSE THE STOCK MARKET HAS RELIED SO HEAVILY ON LOW RATES TO PUSH PRICES HIGHER SAYS JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO THE FIRST WHIFF OF A RISE IN SHORT RATES WILL HAVE A VERY NEGATIVE EFFECT HE SAYS WE'VE ALREADY SEEN A BACKUP IN LONGTERM RATES WHEN WE SEE IT IN SHORTTERM RATES IT WILL CHANGE THE COURSE OF THINGS DRAMATICALLY BUT MR MCALINDEN DOESN'T LAY BLAME FOR A POTENTIAL RISE IN RATES AT THE DOORSTEP OF THE FED RATHER AN UPTICK WILL BE JUST A NATURAL CONSEQUENCE OF THE ECONOMY'S BETTER PERFORMANCE HE ARGUES THE RISING RATES WILL NOT BE BECAUSE THE FED STEPS IN AND TIGHTENS BUT BECAUSE THE FED FOLLOWS THE MARKET MR MCALINDEN SAYS A KEY ELEMENT OF THE ECONOMY'S REJUVENATION IS THE RECENT PICKUP IN PERSONAL SPENDING MR MCALINDEN CONTENDS THAT SPENDING KICKS OFF A PROCESS THAT DRIVES THE ECONOMY FORWARD THE INCREASED SPENDING CAUSES HIGHER PRODUCTION AND THAT LEADS TO HIGHER WAGES HE SAYS THOSE HIGHER INCOMES TRANSLATE INTO MORE SPENDING SO THE ECONOMIC PROCESS FEEDS ON ITSELF ALL THIS GOOD ECONOMIC NEWS WILL RESULT IN AN ACCELERATED DOWNTURN IN STOCK PRICES EARLY NEXT YEAR MR MCALINDEN PREDICTS WHILE THE DOW JONES INDUSTRIAL AVERAGE MAY MOVE FURTHER INTO RECORD TERRITORY OVER THE NEXT FEW WEEKS HE'S LOOKING FOR THE INDUSTRIAL AVERAGE TO HAVE LOST 15 OF ITS VALUE BY JUNE 1994 BUT HE ADDS LATER IN THE YEAR THE ECONOMIC EXPANSION WILL PROVIDE AN UNDERPINNING FOR A NEW ADVANCE IN STOCK PRICES STOCKS WILL SEE SOME PRETTY STRONG RETURNS AS PEOPLE REALIZE EARNINGS AND DIVIDENDS ARE GROWING STRONGLY HE PREDICTS NOT ALL ANALYSTS SEE THE ECONOMY ON A STRAIGHT UPHILL CLIMB HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP BELIEVES THE CURRENT ACCELERATION WILL COOL EARLY NEXT YEAR IN THE FACE OF SEVERAL CONSTRAINTS AMONG THEM BANK LENDING AND MONEY GROWTH ARE STILL TOO SLUGGISH TO POWER BOTH THE ECONOMY AND THE STOCK MARKET THE FULL IMPACT OF THE CLINTON ADMINISTRATION'S TAX INCREASES WILL BE FELT NEXT YEAR PROVIDING A DRAG ON THE ECONOMY THE ADMINISTRATION'S PROPOSED HEALTHCARE PROGRAM WILL CAUSE BUSINESSES TO BALK BEFORE SPENDING IN FEAR OF HIGHER COSTS AND UNRESOLVED QUESTIONS ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL HOVER OVER THE ECONOMY THE CHANCES THE ECONOMY WILL CONTINUE TO ACCELERATE IN THE FIRST HALF OF 1994 ARE SLIM AND NONE MR JOHNSON SAYS RATHER HE SEES NEITHER BOOM NOR BUST A SCENARIO THAT STOCK MARKET INVESTORS SHOULD WELCOME EVEN THOUGH AS A PATRIOTIC AMERICAN YOU MIGHT WANT THE ECONOMY TO ACCELERATE IN THE FIRST HALF OF 1994 WHICH MIGHT MEAN MORE JOBS THE BEST OUTCOME FOR THE STOCK MARKET IS A NO BOOMNO BUST TRAJECTORY MR JOHNSON SAYS A KEY REASON MR JOHNSON PREFERS SLOWER GROWTH IN THE FIRST HALF IS TO KEEP THE FED FROM ROILING THE STOCK MARKET BY BOOSTING INTEREST RATES WHEN THE FED RAISES RATES IT'S ONE OF THOSE SIGNS THAT ACCOMPANIES THE END OF A BULL MARKET HE SAYS IN A NO BOOMNO BUST SCENARIO MR JOHNSON ARGUES THAT STOCK PRICES CAN MOVE MODESTLY HIGHER HE SEES THE STOCK MARKET'S LOFTY VALUATION DROPPING A BIT AS EARNINGS IMPROVE IN THE STEADY SLOW ENVIRONMENT ONE OF THE BIG WORRIES IS THAT PRICEEARNINGS RATIOS ARE TOO HIGH MR JOHNSON SAYS THEY WILL COME DOWN BECAUSE EARNINGS WILL RISE FASTER THAN STOCK PRICES INDEED THE STOCK MARKET WILL LIVE OR DIE BY EARNINGS NEXT YEAR AS INTEREST RATES CREEP HIGHER BUT MR JOHNSON ISN'T EXPECTING 1994 TO BE A BARN BURNER IT'LL BE A TORTOISE MARKET NEXT YEAR SLOW AND BORING HE SAYS WE'RE NOT GOING TO SEE ANY DOUBLEDIGIT RETURNS BUT THE ECONOMY AND EARNINGS WILL BE STRONG ENOUGH TO GIVE US A MODEST TURN UP THE DOW JONES INDUSTRIAL AVERAGE ROSE TO ITS THIRD RECORD HIGH OF THE WEEK ON STRENGTH IN OIL STOCKS THE INDUSTRIAL AVERAGE GAINED 1089 POINTS TO 374067 STANDARD & POOR'S 500STOCK INDEX FELL 025 TO 46393 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED DOWN 007 TO 25693 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX DECLINED 103 TO 46628AND THE NASDAQ COMPOSITE INDEX SLIPPED 075 TO 76074 FOR THE WEEK THE DOW INDUSTRIALS JUMPED 3660 OR 099 THE S&P 500 DROPPED 096 OR 021 THE BIG BOARD COMPOSITE INCHED UP 019 OR 007 AND THE NASDAQ COMPOSITE TUMBLED 1148 OR 149 WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 030 TO 11025 OIL PRICES RALLIED WITH LIGHT SWEET CRUDE FOR JANUARY DELIVERY GAINING 44 CENTS A BARREL IN NEW YORK TO 1507 THREE OIL STOCKS ACCOUNTED FOR MUCH OF THE DOW'S ADVANCE TEXACO WAS UP 1 1/2 TO 64 3/8 EXXON 5/8 TO 62 7/8 AND CHEVRON 5/8 TO 86 5/8 A BIG DECLINER ON THE BIG BOARD WAS BALLARD MEDICAL PRODUCTS WHICH PLUNGED 1 7/8 OR 126 TO 13 THE MANUFACTURER AND MARKETER OF DISPOSABLE MEDICAL PRODUCTS SAID SALES AND PROFIT FOR THE FIRST QUARTER ENDING DEC 31 WILL BE SLIGHTLY LOWER THAN PROJECTED BALLARD EXPECTS THAT FIRSTQUARTER NET INCOME WILL BE 16 CENTS A SHARE ON SALES OF 16 MILLION ANALYSTS HAD BEEN EXPECTING 18 CENTS A SHARE ON SALES OF 184 MILLION INTERNATIONAL BUSINESS MACHINES JUMPED 1 5/8 TO 55 1/4 AFTER DEAN WITTER REYNOLDS RAISED ITS FOURTHQUARTER EARNINGS ESTIMATE TO 60 CENTS FROM 45 CENTS THE BROKERAGE FIRM CITED HEALTHY PERSONALCOMPUTER SALES AND A BETTERTHANEXPECTED MARKET FOR MAINFRAME COMPUTERS SAFETYKLEEN SURGED 7/8 OR 55 TO 16 3/4 CS FIRST BOSTON UPGRADED THE STOCK TO BUY FROM HOLD SAYING THE COMPANY'S RESTRUCTURING WILL HELP 1994 RESULTS CHRYSLER ROSE 3 1/8 TO 56 1/8 AFTER SALOMON BROTHERS RAISED ITS 19941996 EARNINGS ESTIMATES ON THE COMPANY SALOMON EXPECTS CHRYSLER TO EARN 750 A SHARE NEXT YEAR UP FROM THE BROKERAGE FIRM'S PREVIOUS ESTIMATE OF 625 SALOMON ALSO RAISED ITS 1995 AND 1996 ESTIMATES BY 2 AND 150 RESPECTIVELY TO 950 AND 11 MEDTRONIC CLIMBED 1 7/8 TO 84 AFTER THE WALL STREET JOURNAL REPORTED THAT THE FOOD AND DRUG ADMINISTRATION APPROVED THE COMPANY'S ELECTRICAL SYSTEM FOR ITS HEART DEFIBRILLATOR LATER IN THE DAY ELECTROMEDICS SAID MEDTRONIC OFFERED TO ACQUIRE THE COMPANY IN A MERGER THAT WOULD RESULT IN ELECTROMEDICS SHARES BEING EXCHANGEABLE FOR EITHER 675 A SHARE IN CASH OR FOR MEDTRONIC COMMON SHARES INGERSOLLRAND SLIPPED 1 1/2 TO 36 1/2 AFTER LEHMAN BROTHERS LOWERED ITS RATING ON THE STOCK TO OUTPERFORM FROM BUY THE DOWNGRADE WAS MADE BECAUSE INGERSOLLRAND HAS CLIMBED A LOT RECENTLY HITTING A 52WEEK HIGH OF 39 7/8 ON MONDAY BORDEN GAINED 5/8 TO 18 3/4 ON NEWS THAT ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANTHONY D'AMATO RESIGNED HE STEPPED DOWN AMID GROWING CRITICISM OF HIS EFFORTS TO TURN AROUND THE BELEAGUERED COMPANY BOWATER JUMPED 1 1/2 OR 67 TO 24 THE COMPANY PLANS TO REDUCE ITS NEWSPRINT DISCOUNT BY 7 ON MARCH 1 1994 WHICH WOULD EFFECTIVELY RAISE ITS NEWSPRINT PRICE TO ABOUT 479 A METRIC TON FROM 432 9312130103 931213 BUSINESS BRIEFS WEST POINTPEPPERELL INC WEST POINT GA AND ITS CORPORATE PARENT VALLEY FASHIONS CORP COMPLETED THEIR MERGER DEC 10 AND ALSO COMPLETED A 135 BILLION REFINANCING PACKAGE PART OF WHICH WAS USED TO FUND THE MERGER THE NEW NAME OF THE BED AND BATH TEXTILE COMPANY IS NOW WESTPOINT STEVENS INC CHESAPEAKE CORP RICHMOND VA SIGNED A LETTER OF INTENT TO ACQUIRE LAWLESS HOLDING CORP NORTH TONAWANDA NY THE ACQUISITION IS DESIGNED TO STRENGTHEN THE COMPANY'S POSITION IN THE CONSUMERGRAPHICS PACKAGING MARKET COMPUSA INC DALLAS IS OPENING FOUR NEW SUPERSTORES THIS MONTH BRINGING THE NUMBER OF SUPERSTORES OPERATED BY THE COMPUTER RETAILER TO 66 THE STORES ARE IN ALEXANDRIA VA ORANGE CONN AUSTIN TEXAS AND CASTLETON IND UNIVERSAL RESOURCES CORP SALT LAKE CITY A UNIT OF QUESTAR CORP HAS REACHED AN AGREEMENT IN PRINCIPLE TO PURCHASE CERTAIN OIL AND GAS PROPERTIES FOR 226 MILLION FROM PETROLEUM INC GILBERT ASSOCIATES INC READING PA ACQUIRED SRA TECHNOLOGIES INC AN ALEXANDRIA VA PROVIDER OF RESEARCH AND CONSULTING SERVICES IN ENVIRONMENTAL SCIENCES AND ENGINEERING TERMS WEREN'T DISCLOSED 9312130102 931213 YOUR MONEY MATTERS EMPLOYEES WITH 403B PLANS HAVE A LITTLEKNOWN FREEDOM TO DIVERSIFY BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S A SPECIAL MESSAGE FOR TEACHERS EMPLOYEES OF SCHOOL DISTRICTS AND NONPROFIT ORGANIZATIONS AND SOME DOCTORS AND HOSPITAL EMPLOYEES THERE'S A LITTLEKNOWN WAY THAT YOU MIGHT BE ABLE GET HIGHER EARNINGS ON YOUR RETIREMENT SAVINGS AND HAVE MORE CONTROL OVER YOUR MONEY TOO MILLIONS OF EMPLOYEES WITH 403B RETIREMENT PLANS CAN TRANSFER THEIR ACCUMULATED SAVINGS TO ANOTHER INVESTMENT COMPANY SUCH AS THEIR FAVORITE MUTUALFUND OR INSURANCE COMPANY AND THEY CAN MAKE THE TRANSFER EVEN IF THEY REMAIN IN THE SAME JOB AND EVEN IF THE INVESTMENT COMPANY THEY CHOOSE ISN'T ON THE LIST APPROVED BY THEIR EMPLOYER ALTOGETHER MORE THAN 50 BILLION OF THE ROUGHLY 200 BILLION THAT TEACHERS AND OTHERS HAVE ACCUMULATED IN 403B PLANS COULD BE TRANSFERRED TOMORROW SAYS RICHARD MALCONIAN PRESIDENT OF FIDELITY INVESTMENTS TAXEXEMPT SERVICES CO SIMILAR PROCEDURE IT'S ALMOST THE SAME PROCEDURE AS TRANSFERRING AN IRA OR INDIVIDUAL RETIREMENT ACCOUNT SAYS MARY DEAN FINANCIAL PLANNER IN SAN DIEGO YET FEW EMPLOYEES FINANCIAL PLANNERS ACCOUNTANTS OR EVEN HUMANRESOURCES PROFESSIONALS REALIZE THIS FREEDOM EXISTS SHE SAYS A 403B PLAN KNOWN BY THE SECTION OF THE TAX CODE THAT AUTHORIZES IT IS A TAXDEFERRED RETIREMENTSAVINGS PLAN SIMILAR TO THE 401K PLANS GAINING INCREASING POPULARITY AMONG CORPORATE EMPLOYERS IN BOTH CASES PRETAX MONEY IS WITHHELD FROM AN EMPLOYEE'S PAYCHECK AND PLACED IN ONE OR MORE INVESTMENT FUNDS SELECTED BY THE EMPLOYEE FROM AMONG THOSE ALLOWED BY THE PLAN UNLIKE TRADITIONAL PENSION PLANS WHICH PROMISE A CERTAIN DEFINED BENEFIT THE MONEY AVAILABLE AT RETIREMENT TO A PERSON WITH A 403B OR 401K PLAN DEPENDS ON HOW WELL THE EMPLOYEE MANAGES THE MONEY AND THE QUALITY OF THE AVAILABLE INVESTMENTS BUT MANY EMPLOYEES WITH 403B PLANS HAVE A BIG POTENTIAL ADVANTAGE OVER PEOPLE WITH 401K PLANS THEY CAN TRANSFER THE ACCUMULATED SAVINGS IN THEIR PLANS EVEN WITHOUT EMPLOYER APPROVAL SO LONG AS THEIR EMPLOYER HASN'T CONTRIBUTED MONEY TO THE PLAN IN CONTRAST EMPLOYEES WITH 401K PLANS AND THOSE WITH 403B PLANS TO WHICH THEIR EMPLOYER DOES CONTRIBUTE MONEY CAN'T TRANSFER THEIR MONEY ANYWHERE UNTIL THEY CHANGE JOBS OR RETIRE BRUCE CHAMBERS A HIGH SCHOOL ECONOMICS TEACHER IN DEARBORN MICH MOVED HIS MONEY FROM LOWRETURN ANNUITIES NEARLY A DECADE AGO INTO STOCK FUNDS WITH FIDELITY INVESTMENTS HE FIGURES HIS RETIREMENT MONEY EARNED SO MUCH EXTRA AS A RESULT THAT HE WAS ABLE TO RETIRE EARLY I PROBABLY WOULD HAVE STAYED TEACHING ANOTHER SIX TO EIGHT YEARS HE SAYS HE URGES OTHER TEACHERS TO TAKE THE TIME TO LOOK AT THE QUALITY OF THEIR INVESTMENTS UNFORTUNATELY TEACHERS AND OTHER EMPLOYEES WITH 403B PLANS WHICH MAY BE CALLED TSAS OR HAVE GENERIC TITLES SUCH AS TAX SHELTERS OR EVEN SIMPLY SAVINGS PLANS RARELY DO SO THE TRANSFER CHOICES AREN'T LIMITED TO MUTUAL FUNDS PEOPLE WITH 403B MONEY IN ANNUITIES CAN ALSO TRANSFER THE MONEY TO ANOTHER INSURANCE COMPANY'S ANNUITIES EVEN IF THE COMPANY ISN'T ON THEIR EMPLOYER'S LIST THE ONLY RESTRICTIONS ARE THAT THE MONEY BE PLACED IN MUTUAL FUNDS OR ANNUITIES AND THAT THE INVESTMENT COMPANY OR INSURER OFFER 403B TRANSFER ACCOUNTS MOST OF THEM DO TO MAKE A TAXFREE TRANSFER OF 403B SAVINGS YOU MERELY CONTACT THE NEW INVESTMENT COMPANY WHICH WILL SEND YOU A TRANSFER FORM THE MUTUALFUND COMPANY OR INSURER WILL THEN CONTACT THE RETIREMENT PLAN SPONSOR USED BY THE EMPLOYER WHY MOVE THE MONEY IT MAY MAKE SENSE TO START MIGRATING ASSETS IF FOR NO OTHER REASON THAN TO INCREASE DIVERSIFICATION SAYS MARK SKINNER PRESIDENT OF COPELAND COS EAST BRUNSWICK NJ A UNIT OF TRAVELERS CORP JUST AS IMPORTANT SOME EMPLOYEES MAY WANT TO MOVE THE MONEY INTO OTHER INVESTMENTS WITH LOWER FEES A GREAT DEAL OF 403B MONEY IS INVESTED IN VARIABLE ANNUITIES UNLIKE MUTUAL FUNDS THESE HAVE ANNUAL INSURANCE CONTRACT CHARGES THAT AVERAGE 127 BUT RUN AS HIGH AS 165 FOR SOME POPULAR PRODUCTS A SIGNIFICANT EXCEPTION IS COLLEGE RETIREMENT EQUITY FUND PART OF THE GIANT TIAACREF PLAN AVAILABLE TO COLLEGES AND SOME HOSPITALS WHICH HAS NO INSURANCECOMPANY EXPENSES IT DOESN'T MAKE MUCH SENSE TO PAY AN EXTRA 125 A YEAR FOR TAXDEFERRAL THAT YOU ALREADY GET SAYS MS DEAN SOME EMPLOYEES MAY ALSO DISCOVER THAT THEIR CURRENT INVESTMENTS HAVE SUBSTANDARD RETURNS USEFUL RESOURCES FOR COMPARING TOTAL ANNUAL FEES AND PERFORMANCE OF VARIABLE ANNUITY FUNDS AND MUTUAL FUNDS THAT ARE FOUND IN 403B PLANS ARE THE VARIABLE ANNUITY PERFORMANCE REPORT AND THE MUTUAL FUND PERFORMANCE REPORT 15 EACH FROM MORNINGSTAR INC 18008765005 THESE REPORTS ARE EXCELLENT RESOURCES FOR EVALUATING THE QUALITY OF VARIABLE ANNUITIES OR MUTUAL FUNDS YOU MAY BE PLANNING TO MOVE MONEY INTO AFTER ALL YOU DON'T WANT TO JUMP FROM ONE DUD TO ANOTHER WHILE EMPLOYEES CAN TRANSFER THE ACCUMULATED SAVINGS IN ELIGIBLE 403B PLANS THEY ARE STILL RESTRICTED TO THE APPROVED LIST OF VENDORS FOR PROSPECTIVE CONTRIBUTIONS IF THEY WANT TO SEND FUTURE CONTRIBUTIONS DIRECTLY TO THE DESIRED INVESTMENT COMPANY THEY STILL NEED TO GET EMPLOYEES TOGETHER TO PETITION THE EMPLOYER OR SCHOOL DISTRICT TO ADD IT TO THE EMPLOYER'S LIST MEANWHILE IF THEY PLAN ULTIMATELY TO MOVE THEIR MONEY ELSEWHERE THEY MAY WANT TO MAKE SURE THEY DON'T PUT IT INTO INVESTMENTS WITH SURRENDER CHARGES SOME SCHOOL DISTRICT ADMINISTRATORS SAY EMPLOYEES ARE PARKING NEW CONTRIBUTIONS IN MONEYMARKET FUNDS WHICH HAVE NO SURRENDER PENALTIES AND THEN MOVING THE MONEY AFTER A YEAR OR SO WHETHER MOVING ACCUMULATED MONEY OR PARKING FUTURE CONTRIBUTIONS THAT YOU PLAN TO MOVE IT IS VERY IMPORTANT TO CONSIDER SURRENDER PENALTIES MOST OF THE ANNUITIES IN TEACHERS' PLANS HAVE SURRENDER PENALTIES THAT REQUIRE THEM TO FORFEIT A PART OF THEIR INVESTMENT IF THEY PULL THEIR MONEY OUT IN THE FIRST SEVEN YEARS IN SOME CASES THE PENALTIES WHICH GET SMALLER YEAR BY YEAR LAST AS LONG AS 15 YEARS ABOUT HALF OF THESE PLANS TREAT MONEY ACCUMULATED EACH YEAR AS A DIFFERENT POT FOR PURPOSES OF THE SURRENDER PENALTY SO MONEY SAVED IN 1993 MIGHT HAVE A SURRENDER CHARGE OF 6 MONEY SAVED IN 1994 MIGHT HAVE A CHARGE OF 7 AND SO ON SURRENDER CHARGES TEND TO BE HIGHER IN VARIABLE ANNUITIES IN RETIREMENT PLANS THAN IN ANNUITIES SOLD TO INDIVIDUALS SAYS JENNIFER STRICKLAND EDITOR OF VARIABLE ANNUITY REPORTS STILL MANY ANNUITIES LET YOU WITHDRAW SOME OF YOUR BALANCE EACH YEAR WITHOUT A SURRENDER PENALTY CHECK TO SEE WHETHER YOUR INSURANCE COMPANY LETS YOU TRANSFER UP TO 10 OF ACCUMULATED ASSETS PER YEAR WITHOUT SURRENDER PENALTIES MR SKINNER SAYS IF YOU'RE NOT SURE HOW SURRENDER PENALTIES AFFECT YOUR SAVINGS ASK THE INSURANCE COMPANY FOR YOUR SURRENDER VALUE IF THIS IS LOWER THAN THE AMOUNT ON YOUR STATEMENT TRY TO PIN DOWN THE COMPANY ABOUT WHAT MONEY IS SUBJECT TO A SURRENDER PENALTY AND WHEN IT ENDS TEACHERS AND OTHER EMPLOYEES WITH 403B PLANS CAN USE THIS TABLE TO FIGURE OUT WHETHER THE ANNUITY FUNDS OR MUTUAL FUNDS IN THEIR PLAN HAVE ABOVE OR BELOWAVERAGE COSTS AND PERFORMANCE IN ADDITION ANNUITIES HAVE ANNUAL INSURANCE COMPANY CONTRACT EXPENSES WHICH AVERAGE 127 A YEAR 9312130101 931213 PHYSICIANS INSURANCE OF OHIO SELLS 32 STAKE TO GUINNESS PEAT UNIT PICKERINGTON OHIO PHYSICIANS INSURANCE CO OF OHIO SEEKING TO BOLSTER ITS FINANCES SAID IT SOLD A 32 STAKE TO QUAKER HOLDINGS LTD FOR 5 MILLION PHYSICIANS SAID THE UNIT OF GUINNESS PEAT GROUP PLC A LONDONBASED INVESTMENT HOLDING COMPANY BOUGHT 14 MILLION NEW CLASS A COMMON SHARES FOR 350 A SHARE UNDER AN AGREEMENT QUAKER CAN PURCHASE AS MUCH AS ANOTHER 5 MILLION OF NEW CLASS A SHARES AFTER THE ANNOUNCEMENT FRIDAY PHYSICIANS' SHARES JUMPED 50 CENTS TO 4 IN NASDAQ STOCK MARKET TRADING AS PART OF THE TRANSACTION PHYSICIANS NAMED FOUR NEW BOARD MEMBERS RONALD LANGLEY A PRIVATE INVESTOR JOHN R HART AN INVESTMENT AND DEVELOPMENT EXECUTIVE ROBERT R BROADBENT A RETAIL CONSULTANT AND GARY H WEISS A GUINNESS DIRECTOR THEY SUCCEED D BRENT MULGREW OHIO STATE MEDICAL ASSOCIATION EXECUTIVE DIRECTOR STANLEY J LUCAS OHIO STATE MEDICAL ASSOCIATION PAST PRESIDENT WALTER A REILING JR OHIO STATE MEDICAL ASSOCIATION PRESIDENT AND ROBERT L DION FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER MR DION LEFT THE COMPANY EARLIER THIS YEAR MESSRS MULGREW LUCAS AND REILING RESIGNED AFTER PHYSICIANS BOUGHT ALL ITS CLASS B SHARES FROM THE STATE MEDICAL ASSOCIATION 9312130100 931213 TECHNOLOGY & ENVIRONMENT MAJOR FIRMS ARE TO JOIN DRIVE TO LEARN HOW BEST TO DEVELOP DATA SUPERHIGHWAY BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL THE GROUP INCLUDES AMERICAN TELEPHONE & TELEGRAPH CO APPLE COMPUTER INC CITICORP BELLSOUTH CORP INTERNATIONAL BUSINESS MACHINES CORP HEWLETTPACKARD CO AND CABLE LABORATORIES THE RESEARCH ARM OF THE CABLE INDUSTRY THE GROUP INTENDS TO RECOMMEND TO THE CLINTON ADMINISTRATION WAYS TO SET UP THE SYSTEM'S BASIC ARCHITECTURE THAT WILL MAKE IT EASY TO BOTH USE AND NAVIGATE ALONG THE HIGHWAY AT A NEWS CONFERENCE SCHEDULED FOR TODAY IN WASHINGTON DC THE GROUP CALLED THE CROSS INDUSTRY WORKING TEAM WILL ANNOUNCE ITS EFFORT TO PROMOTE AND ACCELERATE THE DEPLOYMENT OF AN ADVANCED INFORMATION NETWORK ACCORDING TO A NEWS RELEASE OBTAINED FROM A MEMBER COMPANY THE CLINTON ADMINISTRATION SUPPORTS THE GROUP'S EFFORTS WHICH INCLUDE PILOT PROJECTS AND A FIRST WHITE PAPER BY NEXT SPRING THERE'S BEEN A MUSICIAN HERE AND A MUSICIAN THERE AND WE'RE TRYING TO GET THEM UP ON THE STAGE TO MAKE A SYMPHONY SAID ROBERT KAHN PRESIDENT OF THE CORPORATION FOR NATIONAL RESEARCH INITIATIVES A NONPROFIT TECHNOLOGY THINKTANK THAT ORGANIZED THE GROUP WE WANT TO AVOID CACOPHONY HE ADDED DR KAHN WROTE THE PROTOCOL OR BASIC SOFTWARE LINKING COMPUTERS THAT TIES TOGETHER THE COMPUTER NETWORKS ON THE GLOBESPANNING INTERNET WHILE THE COMPANIES WILL EXPLORE DIFFERENT OPTIONS SEVERAL EXPERTS INDICATED THEY EXPECT THAT AN ADVANCED SUPERHIGHWAY WILL CONNECT TO THE INTERNET THE GROUP WHICH REFERS TO ITSELF AS THE XIWT AND REQUIRES A 20000 FEE FOR PRIMARY MEMBERS ENVISIONS A NETWORK THAT TRANSPORTS DATA INCLUDING VIDEO AND SOUND AT LEAST THREE TIMES THE SPEED OF THE FASTEST SPEEDS ON THE INTERNET THE GROUP ALSO PLANS TO FIND WAYS TO MAKE A SYSTEM MORE SECURE THAN THE INTERNET FOR THAT REASON MEMBERS OF THE BANKING INDUSTRY HAVE JOINED THE XIWT TO BRING A HEIGHTENED AWARENESS OF SECURITY SAYS COLIN CROOK CITICORP'S DIRECTOR OF TECHNOLOGY WE WANT IT TO HAVE THE RIGHT ATTRIBUTES SO THAT WE CAN USE IT DESPITE ITS OCCASIONAL DISRUPTIONS THE INTERNET HAS SEEN AN EXPLOSION IN THE NUMBER OF CORPORATE USERS BUT IT'S NOT SUITABLE YET FOR VERY HIGHLY RELIABLE MISSIONCRITICAL APPLICATIONS AND SERVICES ON WHICH BUSINESSES OPERATE SAID DR ALAN BARATZ IBM'S DIRECTOR OF STRATEGIC DEVELOPMENT 9312130099 931213 CREDIT MARKETS MUNIFIRM PLAN MEETS RESISTANCE POLITICALDONATION LIMITS SPUR PROTESTS FROM STATE OFFICIALS BY THOMAS T VOGEL JR AND JOHN CONNOR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PLANS TO LIMIT CAMPAIGN CONTRIBUTIONS BY MUNICIPAL UNDERWRITERS ARE RUNNING INTO STIFF RESISTANCE FROM A NUMBER OF INFLUENTIAL ORGANIZATIONS REPRESENTING LOCALGOVERNMENT OFFICIALS THE RESISTANCE HAS DRAWN A SHARP RESPONSE FROM SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT WHO HAS TAKEN A PERSONAL INTEREST IN ABOLISHING WHAT IS WIDELY DESCRIBED AS A PAYTOPLAY CULTURE IN THE MUNICIPAL BOND MARKET IN A PREPARED STATEMENT MR LEVITT SAID SUCH ATTEMPTS ARE SELFINTERESTED AND A MISUNDERSTANDING OF BOTH THE POTENTIAL PROBLEMS WE FACE AND THE PROPOSED SOLUTIONS WE CONTEMPLATE IN THE MUNICIPAL BOND MARKET WE HAVE AMPLE REASON TO BELIEVE THAT THERE ARE SIGNIFICANT PROBLEMS AND THAT WE MUST ADDRESS THEM HE ADDED GROUPS RANGING FROM THE NATIONAL ASSOCIATION OF STATE TREASURERS TO THE FLORIDA ASSOCIATION OF COUNTIES HAVE EXPRESSED VARYING DEGREES OF RESISTANCE TO THE SEC'S PLAN TO ADOPT A RULE THAT'S NOW BEING DRAWN UP BY THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT THE RULE WOULD PROHIBIT UNDERWRITERS THAT ARE SEEKING MUNICIPALBOND BUSINESS FROM MAKING CAMPAIGN CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS THE NATIONAL ASSOCIATION OF STATE TREASURERS FOR INSTANCE ARGUES THAT THE ISSUE CAN BE ADDRESSED AT THE STATE AND LOCAL LEVEL RATHER THAN THROUGH A NATIONAL RULING EARLIER THIS YEAR THE ORGANIZATION SENT A NOTE TO THE MSRB SAYING A PRELIMINARY VERSION OF THE PROPOSAL HAS SERIOUS CONSTITUTIONAL DEFECTS MILTON WELLS DIRECTOR OF FEDERAL RELATIONS AT THE TREASURERS' ASSOCIATION SAID THAT HE DIDN'T THINK THE TREASURERS ARE PLEASED AS BEING PERCEIVED AS BEING CROOKS AND THIEVES AND READY TO SELL OUT FOR 40 PIECES OF SILVER THE FLORIDA ASSOCIATION OF COUNTIES HAS CALLED ON ITS MEMBERS TO BOYCOTT 17 OF THE NATION'S LARGEST SECURITIES FIRMS FOR THEIR DECISION TO VOLUNTARILY LIMIT CAMPAIGN CONTRIBUTIONS IN ADVANCE OF AN OFFICIAL MSRB RULE A SAMPLE LETTER DISTRIBUTED BY THE ASSOCIATION TO COUNTY COMMISSIONERS AND INTENDED TO BE SENT TO THE 17 FIRMS READS I TAKE GREAT PERSONAL OFFENSE THAT YOU WOULD SUPPORT THE PREMISE THAT POLITICAL CONTRIBUTIONS PROVIDE A BASIS OR HAVE A DIRECT RELATIONSHIP IN THE SELECTION OF SECURITIES FIRMS THAT PARTICIPATE IN TRANSACTIONS IN WHICH I PLAY A FIDUCIARY ROLE AT LAST WORD 42 BONDUNDERWRITING FIRMS ARE PARTICIPATING IN THE VOLUNTARY PAYTOPLAY BAN LAUNCHED IN LATE OCTOBER BY THE 17 MAJOR BOND HOUSES WITH MR LEVITT'S ACTIVE SUPPORT THE NATIONAL LEAGUE OF CITIES WHICH RECENTLY ADOPTED ITS OWN RESOLUTION OPPOSING THE MSRB'S PROPOSAL IS SPEARHEADING AN EFFORT TO UNITE AS MANY AS 20 MAJOR STATE AND LOCAL ORGANIZATIONS IN CALLING ON THE SEC TO DELAY FOR A YEAR ITS INITIATIVE ON POLITICAL CONTRIBUTIONS FRANK SHAFROTH DIRECTOR OF REGULATORY AND LEGISLATIVE AFFAIRS FOR THE LEAGUE WHICH IS THE NATION'S LARGEST MUNICIPAL LOBBYING ORGANIZATION SAID THE MSRB PROPOSAL RAISES SERIOUS CONSTITUTIONAL AND FEDERALISM ISSUES THAT DEMAND FURTHER STUDY HE ADDED THAT MANY STATE AND LOCAL OFFICIALS VIEW THE QUESTION AS A GUT ISSUE BECAUSE STATE AND LOCAL OFFICIALS RUNNING FOR FEDERAL OFFICE COULDN'T TAKE WALL STREET CAMPAIGN MONEY UNDER THE PROPOSAL BUT INCUMBENT CONGRESSMEN COULD CAMPAIGN GIVING TO STATE AND LOCAL OFFICIALS BY MUNICIPAL UNDERWRITERS BECAME AN ISSUE EARLIER THIS YEAR AFTER A SPATE OF SCANDALS INVOLVING ALLEGATIONS THAT UNDERWRITERS MADE DONATIONS TO GET BUSINESS THE MSRB WILL MEET TODAY TO PUT THE FINAL TOUCHES ON ITS PROPOSAL TO BAR FIRMS FROM UNDERWRITING BONDS OF A STATE OR LOCAL JURISDICTION FOR TWO YEARS IF THEY HAVE MADE CONTRIBUTIONS TO OFFICIALS IN THAT JURISDICTION THE PROPOSAL CONTAINS A 250 EXEMPTION FOR CONTRIBUTIONS BY UNDERWRITERS' EMPLOYEES TO RACES WHERE THE EMPLOYEES ARE ELIGIBLE TO VOTE THE MSRB WILL SEND ITS RULE TO THE SEC FOR CONSIDERATION IN JANUARY THE SEC WHICH WILL SEEK PUBLIC COMMENT ON THE PROPOSAL COULD TAKE FINAL ACTION ON THE ISSUE IN MARCH BUT MANY STATE AND LOCAL OFFICIALS ARE HOPING THE PROPOSAL WILL NEVER GET THAT FAR IT'S A FAIRNESS ISSUE SAID MR SHAFROTH OF THE NATIONAL LEAGUE OF CITIES THE VAST MAJORITY OF THE MORE THAN 1100 MUNICIPAL OFFICIALS WHO APPROVED THE LEAGUE'S RESOLUTION BY ACCLAMATION NEVER RECEIVED ANY CAMPAIGN CONTRIBUTIONS FROM WALL STREET HE ADDED REPRESENTATIVES OF THE NATIONAL GOVERNORS ASSOCIATION THE GOVERNMENT FINANCE OFFICERS ASSOCIATION AND THE NATIONAL COUNCIL OF STATE HOUSING AGENCIES ARE AMONG THOSE WHO HAVE SAID THEIR GROUPS WOULD LIKE TO SEE REGULATORS STEP BACK AND TAKE MORE TIME TO ASSESS THE CONSTITUTIONAL AND FEDERALISM ASPECTS OF THE POLITICALCONTRIBUTIONS DEBATE THERE IS ALSO TALK OF LEGAL ACTION CARL CRAWFORD DIRECTOR OF NEWS AND COMUNICATIONS FOR THE FLORIDA ASSOCIATION OF COUNTIES SAID THAT THE GROUP WANTS TO LOOK INTO THE POSSIBILITY OF FILING A LAWSUIT AGAINST THE MSRB TO FIGHT THE PROPOSED RULE ONCE THE SEC APPROVES A POLITICALCONTRIBUTIONS RULE THE RULE COULD BE CHALLENGED UNDER AN EXPEDITED PROCEDURE THAT ALLOWS SUITS FILED ON NEWLY MINTED SEC ORDERS TO BE TAKEN DIRECTLY TO A FEDERAL APPEALS COURT ACCORDING CHRISTOPHER TAYLOR EXECUTIVE DIRECTOR OF THE MSRB I'M SORRY THAT SOME PEOPLE FEEL CALLED UPON TO INITIATE LEGAL ACTION IF THAT'S WHAT THEY'RE CONTEMPLATING SAID MR TAYLOR WE'RE JUST TRYING TO REMOVE ANY SUGGESTION OF REAL OR APPARENT CONFLICTS OF INTEREST IN THE BUSINESS OF UNDERWRITING MUNICIPAL BONDS HE SAID PRICES OF TREASURY SECURITIES DROPPED SHARPLY FRIDAY AMID NEWS OF IMPROVING CONSUMER CONFIDENCE AND A RISE IN COMMODITY PRICES PLAYERS STRESSED THAT THE MARKET HAS NOW ENTERED A YEAREND HOLIDAY MODE AS A RESULT THEY WERE RELUCTANT TO READ TOO MUCH INTO THE MARKET'S DECLINES THE MARKET WAS A LITTLE BIT UNDER PRESSURE BUT I DON'T SEE THIS TURNING INTO ANYTHING MAJOR SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS WE'RE IN A BROAD TRADING RANGE AND I THINK WE'RE GOING TO STAY HERE THROUGH THE BALANCE OF THE YEAR THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 5/8 POINT TO 100 16/32 A LOSS OF MORE THAN 625 FOR A BOND WITH A 1000 FACE AMOUNT ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE CLIMBED TO 620 UP FROM 615 ON THURSDAY THE 10YEAR NOTE DROPPED MORE THAN 1/2 POINT TO 100 1/32 TO YIELD 573 UP FROM 565 ON THURSDAY MOST OF THE LOSSES WERE POSTED FOLLOWING NEWS IN THE MORNING OF A SURGE IN CONSUMER CONFIDENCE THE UNIVERSITY OF MICHIGAN'S CONSUMERSENTIMENT INDEX JUMPED TO 877 IN EARLY DECEMBER FROM 812 IN NOVEMBER ACCORDING TO MARKET SOURCES WHO HAVE SEEN THE REPORT THE UNIVERSITY OF MICHIGAN FIGURES ARE MADE AVAILABLE ONLY TO SUBSCRIBERS THAT NEWS FOLLOWED A REPORT ON CONSUMER PRICES THAT CAME IN LARGELY AS EXPECTED THE LABOR DEPARTMENT REPORTED THAT THE CONSUMER PRICE INDEX ROSE 02 DURING NOVEMBER RIGHT IN LINE WITH MOST FORECASTS THE CORE RATE WHICH IS THE CPI EXCLUDING FOOD AND ENERGY ALSO CAME IN AS FORECAST WITH A 03 INCREASE HELPING ACCELERATE THE PRICE SLIDE ON FRIDAY WERE SURGING PRECIOUSMETAL AND ENERGY PRICES THAT PUSHED THE WIDELY WATCHED COMMODITY RESEARCH BUREAU INDEX TO NEW THREEYEAR HIGHS THE INDEX GAINED 141 POINTS FRIDAY TO END AT 22480 THE JUMP IN COMMODITY PRICES HAS COME AT A TIME WHERE THE MARKET IS INCREASINGLY NERVOUS ABOUT THE POSSIBILITY THAT THE FASTER PACE OF ECONOMIC GROWTH WILL ULTIMATELY FORCE THE FEDERAL RESERVE TO RAISE INTEREST RATES IN AN ATTEMPT TO STAVE OFF AN UPSWING IN INFLATION IN THE CORPORATE BOND MARKET PLAYERS THIS WEEK WILL BE FOCUSING ON A 200 MILLION OFFERING OF 10YEAR YANKEE NOTES FROM CHINA'S GUANGDONG ENTERPRISES HOLDINGS LTD WHICH IS EXPECTED TO COME ON WEDNESDAY ACCORDING TO SYNDICATE OFFICIALS YANKEE NOTES ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE US THE ISSUE WILL BE NONCALLABLE AND HAVE A RATING OF BAA3 RATING FROM MOODY'S INVESTORS SERVICE INC AND DOUBLEB FROM STANDARD & POOR'S CORP 9312130098 931213 POLITICS & POLICY CORPORATE AMERICA UNITED ON NAFTA DISCOVERS THAT COALITION BUILDING ON GATT IS TOUGHER BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA BY WALKING AROUND THE INTERCONTINENTAL HOTEL HERE YOU CAN HEAR CORPORATE AMERICA'S TRADE COALITION FRACTURE UPSTAIRS IN SUITE 1216 MICHAEL MAIBACH A LOBBYIST FOR SEMICONDUCTOR MAKER INTEL CORP PLOTS ATTACKS ON PARTS OF WORLD TRADE TALKS WITH LOBBYISTS ALISA MAYER OF CHRYSLER CORP AND MARJORIE CHORLINS OF MOTOROLA INC BETHLEHEM STEEL CORP EASTMAN KODAK CO AND ZENITH ELECTRONICS CORP ARE PART OF THEIR EFFORT TO PUT MORE MUSCLE IN DUMPING LAWS THAT LET COMPANIES SEEK RETALIATION AGAINST IMPORTERS WHO SELL GOODS AT UNFAIR PRICES IN A RESTAURANT DOWNSTAIRS WILLIAM BEDDOW A CATERPILLAR INC OFFICIAL HUDDLES WITH WASHINGTON LOBBYISTS CAL COHEN AND GARY HORLICK FIGURING OUT HOW TO BLOCK THE EFFORTS OF THE SUITE 1216 GROUP THEY'RE PART OF A COALITION OF US EXPORTERS INCLUDING INTERNATIONAL BUSINESS MACHINES CORP CARGILL INC PHILIP MORRIS COS AND HEWLETTPACKARD CO THAT ARGUES THEY'LL FACE MORE DUMPING COMPLAINTS FROM OTHER COUNTRIES IF THE GROUP UPSTAIRS IS SUCCESSFUL AS IT TURNED OUT A RESOLUTION WAS REACHED LAST NIGHT REGARDING ANTIDUMPING PROVISIONS IT ADOPTED MANY OF THE MEASURES ADVOCATED BY THE SUITE 1216 GROUP AND IS LIKELY TO INFURIATE THE EXPORTERS THE OTHER SIDE THOUGH COULD COMPLAIN THAT THE CHANGES DIDN'T GO FAR ENOUGH I WOULDN'T BE SURPRISED IF THERE'S REAL SCREAMING IN THE NEXT 24 HOURS A US OFFICIAL SAID LAST NIGHT THE COMPANIES REPRESENTED IN BOTH STRATEGY SESSIONS WERE AMONG THE UNITED BUSINESS COALITION THAT HELPED PRESIDENT CLINTON WIN CONGRESSIONAL APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT BUT US CORPORATIONS ARE SPLITTING OVER THE WORLD TRADE TALKS BEING RUN BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE THAT'S POLITICALLY IMPORTANT BECAUSE IN THE NAFTA DEBATE THE ADMINISTRATION RELIED ON COMPANIES TO CONVINCE LAWMAKERS THAT THE TRADE PACT WOULD BE GOOD FOR BUSINESS AND THUS GOOD FOR THE US ECONOMY MR CLINTON WON'T BE ABLE TO RELY ON SUCH POLITICAL PERSUASION IF COMPANIES DECIDE GATT WON'T BE GOOD FOR THEM THE CORPORATE BLOC ISN'T THERE ON GATT SAYS HARVEY BALE AN EXECUTIVE VICE PRESIDENT AT THE AMERICAN PHARMACEUTICAL ASSOCIATION SHAKING HIS HEAD OUTSIDE A RECEPTION WHERE COMPANY REPRESENTATIVES GATHER FROM BOTH SIDES THIS GATT AGREEMENT HASN'T WORKED SO FAR JUST AS IT IS HE SAYS COMPANIES CERTAINLY AREN'T GOING TO BE AS PRO' AS THEY WERE ON NAFTA IT'LL RANGE SOMEWHERE FROM OPPOSED TO LUKEWARM BUT ROBERT HALL A LOBBYIST FOR THE NATIONAL RETAIL FEDERATION IS PROGATT RIGHT NOW BECAUSE OF PROPOSALS TO OPEN TEXTILE MARKETS HE POINTS INSIDE THE RECEPTION AND SAYS WHAT YOU SEE IN THAT ROOM IS A BUNCH OF GUYS WHO ARE MY FRIENDS A BUNCH WILL BE HAPPY OVER THE GATT AGREEMENT A BUNCH WON'T BE HAPPY THERE ISN'T SOMETHING LIKE A SOLID MANUFACTURING BASE ANYMORE ONE PERSON WHO DOESN'T LOOK HAPPY AT THE MOMENT IS JOHN ALBERTINE A LOBBYIST FOR FRUIT OF THE LOOM INC HE PORES OVER A ONEPAGE DRAFT OF ISSUES NOT TO THE TEXTILE LOBBY'S LIKING ON THE TOP OF ITS LIST DEVELOPING COUNTRIES WANT TO REDUCE TEXTILE QUOTAS OVER 10 YEARS THE US TEXTILE COMPANIES WANT A 15YEAR PERIOD THEY DIDN'T GET THAT THOUGH IN A SETTLEMENT REACHED LATE LAST NIGHT WE DID EVERYTHING FOR NAFTA GRUMBLES MR ALBERTINE IF GATT REMAINS IN ITS CURRENT FORM WE'LL FIGHT IT IT'S CERTAINLY TO THESE COMPANIES' ADVANTAGE TO SQUEAL AS LOUDLY AS THEY CAN AS BLEARYEYED US TRADE NEGOTIATORS SCRAMBLE TO MEET A WEDNESDAY DEADLINE FOR COMPLETING THESE TALKS IF THE AGREEMENT IS WRAPPED UP BY THEN MR CLINTON CAN GET FASTTRACK AUTHORITY THAT FORCES CONGRESS TO VOTE ON THE TRADE PACT WITHOUT AMENDMENTS MOREOVER THE TERMS OF THE FASTTRACK APPROACH AMPLIFY COMPLAINTS BECAUSE TRADE DEALS CAN'T BE MODIFIED THERE'S LITTLE ROOM FOR CHANGES FOR THE DISGRUNTLED INDUSTRIES ONCE THEY TAKE EFFECT ALSO GATT ROUNDS SURFACE ONLY EVERY DECADE OR SO AND SO COMPANIES WON'T BE ABLE TO CHANGE THE TERMS FOR QUITE A WHILE HARRY FREEMAN A FORMER AMERICAN EXPRESS CO EXECUTIVE AND HEAD OF A COALITION OF CORPORATIONS THAT HAS PUSHED FOR THE TRADE PACT SCANS LOBBYISTS WALKING BY IN THE INTERCONTINENTAL LOBBY AND SHRUGS SURE THEY'RE MAD BUT IT WILL FADE BANKS AND FINANCIAL INSTITUTIONS SUCH AS AMERICAN EXPRESS HAVE OFTEN LED INDUSTRY CHEERLEADING FOR TRADE ACCORDS BUT THEY AREN'T LIKELY TO BE HELPED BY GATT CITICORP FOR ONE IS DISSATISFIED BECAUSE BANKS AREN'T GETTING MUCH INCREASED ACCESS TO FOREIGN MARKETS NEGOTIATORS ARE SAYING ONLY THAT THE US WILL APPROVE FOREIGN FINANCIALSERVICE COMPANIES' EXPANSION PLANS IF THEIR HOMECOUNTRY MARKETS ARE ABOUT AS OPEN AS THE US'S THE PRACTICAL EFFECT WILL BE THAT THE US WILL BATTLE IT OUT IN 1ON1 NEGOTIATIONS WITH SUCH COUNTRIES AS JAPAN AND SOUTH KOREA THAT'S HARDLY A DEAL THAT WOULD CAUSE BANKS TO CHEER OR TO FORK OVER MONEY FOR LOBBYING THE ASSEMBLAGE IN SUITE 1216 IS COINED THE GEPHARDTDOLE GROUP IN REFERENCE TO HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO AND SENATE MINORITY LEADER ROBERT DOLE R KAN TWO LAWMAKERS WHO WERE SPLIT OVER NAFTA BUT HAVE COME TOGETHER ON GATT TWO FORMER US TRADE NEGOTIATORS ALAN WOLFF A PARTNER AT DEWEY BALLANTINE AND BOB LIGHTHIZER A FORMER DOLE AIDE AND NOW A PARTNER AT SKADDEN ARPS SLATE MEAGHER & FLOM ARE SPEARHEADING THE LOBBYISTS THE GROUP'S CORPORATE PARTICIPANTS WHOSE EXECUTIVES WERE HIGHPROFILE NAFTA SUPPORTERS ARE UNHAPPY WITH GATT FOR A NUMBER OF REASONS INTEL ISN'T GETTING ENOUGH PATENT PROTECTION AND THE EUROPEAN COMMUNITY ISN'T LOWERING ITS SEMICONDUCTOR TARIFFS MUCH CHRYSLER AND MOTOROLA LIKE THE REST WANT STRONGER ANTIDUMPING LANGUAGE IN THE TRADE AGREEMENT NAFTA WAS A LOVE FEST AMONG THE MULTINATIONALS SAYS MR MAIBACH WHO HAS BEEN SLIPPING INTEL'S POSITION PAPERS AROUND TOWN THIS IS GOING TO BE BITTER REPRESENTATIVES HERE NOTE THAT OVER THE PAST FEW DAYS SEVERAL DISGRUNTLED EXECUTIVES INCLUDING ROBERT EATON CHRYSLER'S CHIEF EXECUTIVE OFFICER HAVE DELIVERED THEIR MESSAGE TO PRESIDENT CLINTON MR KANTOR OR ROBERT RUBIN HEAD OF THE NATIONAL ECONOMIC COUNCIL ANDREW GROVE INTEL CHIEF EXECUTIVE TOLD MR CLINTON HE WOULD OPPOSE GATT IF THE US DOESN'T WIN CERTAIN LICENSING RIGHTS THE CHIEF EXECUTIVES OF BOEING CO MCDONNELL DOUGLAS CORP AND UNITED TECHNOLOGIES CORP HAVE SENT SIMILAR MESSAGES BECAUSE THEY DON'T THINK THE CURRENT AGREEMENT'S TEXT INCLUDES ENOUGH RESTRICTIONS ON EUROPEAN GOVERNMENTS' SUBSIDIES TO AIRBUS INDUSTRIE THE CONSORTIUM THAT HAS BECOME A SERIOUS COMPETITIVE THREAT TO US AIRCRAFT MAKERS REPRESENTATIVES FOR THE CONFLICTING CORPORATE INTERESTS ARE BUTTING HEADS HERE AT A HEATED BRIEFING FOR VISITING CONGRESSMEN MR WOLFF WENT BACK AND FORTH WITH MR HORLICK AN O'MELVENY & MYERS ATTORNEY FOR THE COALITION OF BIG US EXPORTERS MR WOLFF ATTACKED THE PACT FOR NOT PROVIDING TOUGH ENOUGH ANTIDUMPING MEASURES MR HORLICK SAID PROPOSED CHANGES ARE TOO STRINGENT AND WOULD PUT US EXPORTERS AT RISK WHEN THEY SELL THEIR PRODUCTS ABROAD REP GEPHARDT HEARD MANY OF THE COMPLAINTS LAST WEEK DURING A CONGRESSIONAL DELEGATION SWING THROUGH GENEVA DURING A BREATHER HE ACKNOWLEDGED AT THE END OF THE DAY THERE ARE GOING TO BE COMPANIES THAT AREN'T GOING TO BE SATISFIED INDEED REPRESENTATIVES OF THE DOLEGEPHARDT GROUP COOL THEIR HEELS WITH DEMOCRATIC REPS NORM MINETA AND ROBERT MATSUI TWO CALIFORNIANS WHO ARE CONSIDERED SYMPATHETIC TO CORPORATE COMPLAINTS OVER GATT IT WAS MR MATSUI WHO DIRECTED HOUSE SUPPORT FOR NAFTA ASKED ABOUT GATT HE WON'T COMMENT 9312130097 931213 WHAT'S NEWS WORLDWIDE YELTSIN APPEARED TO WIN APPROVAL OF HIS NEW RUSSIAN CONSTITUTION VOTERS GAVE THE PRESIDENT AN IMPORTANT VICTORY BY NARROWLY APPROVING A CONSTITUTION THAT GREATLY EXPANDS HIS POWERS ACCORDING TO INITIAL RETURNS HOWEVER YELTSIN'S OPPONENTS THE COMMUNISTS AND ULTRANATIONALISTS FARED SURPRISINGLY WELL IN SIMULTANEOUS PARLIAMENTARY ELECTIONS EARLY INDICATIONS SUGGEST YELTSIN WILL HAVE TO CONTEND WITH A SIZABLE OPPOSITION BLOC IN PARLIAMENT THAT COULD SLOW ECONOMIC REFORM VOTER TURNOUT WAS LOW AND ELECTION OFFICIALS BLAMED THE HARSH WINTER WEATHER A SOCCER GAME ON TELEVISION AND GENERAL DISGUST WITH POLITICS RABIN AND ARAFAT FAILED TO REACH AN ACCORD BEFORE A WITHDRAWAL DEADLINE MEETING IN CAIRO THE ISRAELI PRIME MINISTER AND PLO LEADER WERE UNABLE TO RESOLVE DISPUTES OVER A PLAN TO START REMOVING ISRAELI TROOPS FROM THE GAZA AND JERICHO THEY AGREED TO DELAY THE ISRAELI WITHDRAWAL AT LEAST 10 DAYS RABIN REFUSED TO SAY WHETHER ISRAEL WOULD MAKE EVEN A SYMBOLIC GESTURE TODAY THE DEADLINE SET FOR THE PULLOUT TO BEGIN THE NEW SNAG WAS GREETED WITH ANGER IN THE OCCUPIED TERRITORIES RABIN SAID THE MAIN DISPUTE WAS OVER HOW MUCH LAND ISRAEL WILL VACATE AROUND THE WEST BANK TOWN OF JERICHO AND WHO WILL CONTROL BORDER CROSSINGS SOMALI PEACE TALKS COLLAPSED IN ETHIOPIA AND FACTION LEADERS WENT HOME RAISING FEARS OF NEW CLAN WARFARE AS US TROOPS ARE PREPARING TO LEAVE SOMALIA BY MARCH ONE OF THE SOMALI LEADERS GEN AIDID ACCUSED THE UN OF CONTRIBUTING TO THE TALKS' FAILURE BY INVITING SOME RIVAL FACTION LEADERS TO FORM A GOVERNMENT WITHOUT HIM MIT AND THE GOVERNMENT ARE DISCUSSING AN ANTITRUST SETTLEMENT THAT WOULD STRENGTHEN COLLEGES' ABILITY TO LIMIT STUDENT FINANCIALAID AWARDS A DRAFT SETTLEMENT HAS BEEN NEGOTIATED IN THE CASE IN WHICH THE GOVERNMENT SUED MIT OVER ITS PRACTICE OF JOINTLY SETTING STUDENT AID AWARDS WITH OTHER COLLEGES THE INTERIOR DEPARTMENT MOVED TO EASE RESTRICTIONS ON SOME PRIVATE TIMBERLANDS INHABITED BY THE NORTHERN SPOTTED OWL BUT THE AGENCY PLEDGED TO ENFORCE LOGGING RESTRICTIONS ON OTHER PRIVATE ACREAGE MORE AGGRESSIVELY THE PROPOSAL WOULD AFFECT INDIVIDUAL LANDOWNERS AS WELL AS LARGE COMPANIES A SURVEY OF NEARLY 800 URBAN BOYS FOUND THAT 22 OF THE YOUTHS AT 10 INNERCITY HIGH SCHOOLS OWN GUNS AND 12 SAY THEY CARRY THE WEAPONS ROUTINELY IN THE JUSTICE DEPARTMENT STUDY CONDUCTED IN FOUR STATES ONLY 6 OF THE STUDENTS WHO REPORTED USING GUNS SAID THEY HAD TAKEN HARD DRUGS A SIXTH VICTIM DIED FROM LAST WEEK'S LONG ISLAND RAIL ROAD SHOOTING SPREE THE 27YEAROLD WOMAN DIED WITHOUT REGAINING CONSCIOUSNESS FROM A NECK WOUND SHE WAS ONE OF A TOTAL OF 23 PEOPLE SHOT BY A GUNMAN LAST TUESDAY INSIDE A COMMUTER TRAIN POLICE ARRESTED A MAN AFTER THE SHOOTING AND CHARGED HIM WITH THE CRIME SERBS AND MUSLIMS FOUGHT FOR A STRATEGICALLY IMPORTANT SLIVER OF LAND IN EASTERN BOSNIA DESPITE EUROPEAN COMMUNITY PRESSURE ON THE SERBS TO YIELD TERRITORY MEANWHILE UN AID CONVOYS REACHED THE BESIEGED CITIES OF TUZLA AND SREBRENICA AND A THIRD CONVOY NEARED SARAJEVO IRA GUNMEN KILLED TWO POLICE OFFICERS IN A VILLAGE WEST OF BELFAST HOPING TO PUT PRESSURE ON BRITAIN TO AGREE WITH IRELAND ON A PEACE FORMULA FOR NORTHERN IRELAND SOURCES CLOSE TO THE IRISH REPUBLICAN ARMY SAID THE KILLINGS WERE INTENDED TO SHOW THAT THE IRA WAS PREPARED TO LAUNCH A NEW OFFENSIVE NEXT YEAR IF THE PEACE PROCESS FAILS TWO MILLION MORE PEOPLE WERE INFECTED WITH THE AIDS VIRUS IN THE LAST YEAR MOSTLY IN AFRICA WHERE TEENS AND YOUNG ADULTS ARE BEING INFECTED AT AN ALARMING RATE THE WORLD HEALTH ORGANIZATION SAID NEARLY 70 OF THE WORLD'S 15 MILLION PEOPLE INFECTED WITH THE VIRUS ARE IN AFRICA ACCORDING TO WHO THE INKATHA FREEDOM PARTY DENOUNCED SOUTH AFRICA'S FIRST ALLRACE GOVERNING BODY AND JOINED WITH RIGHTWING POLITICAL ALLIES IN TALKS ABOUT THE FUTURE OF CONSTITUTIONAL TALKS INKATHA WHICH IS HEADED BY ZULU LEADER BUTHELEZI CRITICIZED THE NEW COUNCIL FOR MAKING POLITICALLY MOTIVATED DECISIONS DIED JOZSEF ANTALL 61 HUNGARY'S PRIME MINISTER WHO TOOK OFFICE IN 1990 AFTER THE END OF COMMUNIST RULE IN BUDAPEST OF CANCER 9312130096 931213 BUSINESS BRIEF ASTRA AB DRUG MAKER AGREES TO FORM SOUTH AFRICA MARKETING UNIT SWEDISH PHARMACEUTICAL GROUP AB ASTRA REACHED AN AGREEMENT WITH ITS AGENT IN SOUTH AFRICA ADCOCK INGRAM TO FORM A JOINTLY OWNED MARKETING COMPANY IN SOUTH AFRICA ASTRA WILL OWN 60 OF THE NEW COMPANY ASTRA PHARMACEUTICALS PTY LTD WITH OPERATIONS SCHEDULED TO START ON APRIL 1 1994 ASTRA SAID INITIALLY THE UNIT WILL HAVE 65 EMPLOYEES IT SAID ANNUAL SALES OF ASTRA PRODUCTS IN SOUTH AFRICA AMOUNT TO ABOUT 120 MILLION KRONOR 144 MILLION SOUTH AFRICA OUGHT TO HAVE GOOD CHANCES OF BECOMING A SUBSTANTIAL PHARMACEUTICAL MARKET IN THE LONG TERM SAID ASTRA PRESIDENT HAKAN MOGREN THIS AGREEMENT IS ENTIRELY IN LINE WITH OUR STRATEGY OF INCREASING ASTRA'S INFLUENCE OVER MARKETING OF OUR PRODUCTS IN IMPORTANT MARKETS 9312130095 931213 BUSINESS BRIEF US HEALTHCARE INC NEW JERSEY ALLOWS COMPANY TO INCREASE PREMIUMS 2 US HEALTHCARE INC SAID NEW JERSEY INSURANCE REGULATORS APPROVED A 2 PREMIUM RATE INCREASE FOR THE YEAR BEGINNING JULY 1 1993 THE MANAGEDHEALTHCARE COMPANY HAD REQUESTED A 3 INCREASE THE NEW RATES APPLY TO MORE THAN 400000 COMMERCIAL GROUP HEALTH MAINTENANCE ORGANIZATION MEMBERS IN THE STATE AND BECOME EFFECTIVE AS EMPLOYERS RENEW HEALTH COVERAGE FOR THEIR EMPLOYEES THE BLUE BELL PA COMPANY SAID THE LOW RATE INCREASE REFLECTS IN PART SUCCESSFUL EFFORTS TO CONTROL MEDICAL COSTS U S HEALTHCARE HAS ABOUT 1550000 MEMBERS IN ITS MANAGEDCARE PROGRAMS IN NEW JERSEY NEW YORK PENNSYLVANIA DELAWARE CONNECTICUT MASSACHUSETTS NEW HAMPSHIRE MARYLAND AND THE DISTRICT OF COLUMBIA 9312130094 931213 CORRECTIONS & AMPLIFICATIONS KAZUAKI MATSUI IS NOT AN OFFICIAL OF JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AS WAS STATED IN AN ARTICLE THURSDAY MR MATSUI IS A DIRECTOR OF THE INSTITUTE FOR APPLIED ENERGY A MITICHARTERED RESEARCH CENTER THAT IS CONDUCTING COLDFUSION RESEARCH FOR MITI NEWCOR INC SAID NET INCOME FOR THE FISCAL YEAR ENDING IN OCTOBER IS EXPECTED TO BE SOMEWHAT BELOW THE RECORD PROFIT FROM OPERATIONS OF 5364000 OR 116 A SHARE A YEAR EARLIER INCLUDING AN ACCOUNTING ADJUSTMENT NET FOR FISCAL 1993 WAS 884000 OR 19 CENTS A SHARE FRIDAY'S SMALL STOCK FOCUS INCORRECTLY REPORTED THAT NEWCOR EXPECTS FISCAL 1994 EARNINGS TO FALL BELOW 19 CENTS A SHARE WORKERS RECENTLY FIRED FROM A HONEYWELL INC PLANT IN CHIHUAHUA MEXICO WERE PAID 35 TO 45 A WEEK IN WAGES AND BONUSES AN ARTICLE THURSDAY INCORRECTLY SAID THE WORKERS WERE PAID 35 TO 45 A DAY THE TELEPHONE NUMBER FOR A POLITICAL ACTION COMMITTEE OPPOSING OLLIE NORTH'S SENATE BID IS 1703NORTHNO FRIDAY'S WASHINGTON WIRE COLUMN PROVIDED AN INCORRECT NUMBER 9312130093 931213 LORAL TENTATIVELY AGREES TO BUY IBM'S FEDERAL SYSTEMS FOR NEARLY 15 BILLION BY JEFF COLE AND LAURIE HAYS STAFF REPORTERS OF THE WALL STREET JOURNAL LORAL CORP THE FASTGROWING DEFENSEELECTRONICS CONCERN HAS TENTATIVELY AGREED TO BUY INTERNATIONAL BUSINESS MACHINES CORP'S FEDERAL SYSTEMS CO UNIT IN A DEAL VALUED AT NEARLY 15 BILLION IBM AND NEW YORKBASED LORAL ARE EXPECTED TO ANNOUNCE THE DEAL AS EARLY AS TODAY THE FUSE ON THIS IS SHORT SAID ONE EXECUTIVE CLOSE TO THE TALKS IN RECENT DAYS OTHER BIDDERS INCLUDING MARTIN MARIETTA CORP GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO UNIT AND NORTHROP CORP HAVE DROPPED OUT OF THE AUCTIONSTYLE SALE ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE PRICE OF THE IBM UNIT HAS SOARED WELL BEYOND INITIAL EXPECTATIONS OF ABOUT 1 BILLION FORCING LORAL CHAIRMAN BERNARD L SCHWARTZ TO OFFER TO PAY AN UNUSUALLY HIGH PREMIUM FOR THE BUSINESS THE PRICE ALSO SETS UP A HANDSOME RETURN FOR IBM BUT A SUCCESSFUL PURCHASE BY THE ACQUISITIONMINDED MR SCHWARTZ WOULD PROPEL HIS COMPANY TO A LEADING ROLE IN SEVERAL KEY DEFENSE AND NONDEFENSE MARKETS LORAL'S STRENGTH IN INTEGRATED AVIONICS SYSTEMS FOR MILITARY AIRCRAFT WOULD BE SHARPLY BOOSTED BY THE IBM UNIT'S PROWESS IN SOFTWARE FOR SENSORS AND COMMUNICATIONS DEVICES SUCH AS RADARWARNING SYSTEMS ELECTRONIC COUNTERMEASURES GEAR AND COCKPIT DISPLAYS ABOUT HALF OF FEDERAL SYSTEMS' 22 BILLION IN ANNUAL REVENUE IS FOR DEFENSERELATED PRODUCTS THAT ALSO INCLUDE LEADING ANTISUBMARINE WARFARE AND WEAPONSSYSTEM SIMULATION TECHNOLOGY THE PURCHASE ALSO WOULD BRING LORAL LEADERSHIP IN PRODUCING SPACESHUTTLE SOFTWARE SYSTEMS AND CIVILIAN AIRTRAFFICCONTROL SYSTEMS AND IN PROVIDING COMPUTING SERVICES TO MAJOR FEDERAL AGENCIES SUCH AS THE FEDERAL AVIATION ADMINISTRATION AND THE INTERNAL REVENUE SERVICE THE UNIT HAD A PROFIT OF 71 MILLION LAST YEAR SPOKESMEN FOR IBM AND THE BIDDERS HAVE DECLINED TO COMMENT ON THE NEGOTIATIONS WHILE THE RUMORRIDDLED CONTEST FOR THE IBM UNIT HAS BEEN UNDER WAY FOR MORE THAN A MONTH LORAL'S LEADERSHIP IN THE BIDDING EMERGED ONLY WITHIN THE LAST WEEK SAY THOSE CLOSE TO THE AUCTION FOR IBM AND ITS NEW CHAIRMAN LOUIS V GERSTNER JR THE SALE WILL GENERATE FUNDS NEEDED TO CUT DEBT AND MAKE GOOD ON ITS PROMISE TO SLASH 7 BILLION FROM OPERATING EXPENSES BY 1996 THE SALE WILL FREE THE COMPANY OF COSTS ASSOCIATED WITH REAL ESTATE OVERHEAD AND SUPPORT FOR THE 11400 EMPLOYEES OF THE DIVISION WHICH IS BASED IN BETHESDA MD UNDER TERMS INCLUDED IN A SALE DOCUMENT TOTALING HUNDREDS OF PAGES IBM WILL RETAIN ONLY ITS MARKETING ARM FOR USE IN SELLING TO THE GOVERNMENT STANDARD COMPUTERS SUCH AS ITS PS/2 DESKTOP LINE LAST SUMMER UNDER THE DIRECTION OF FORMER CHAIRMAN JOHN AKERS IBM BEGAN LOOKING AT ALL OF ITS BUSINESSES WITH AN EYE TOWARD DIVESTING THOSE NOT IN ITS PRIMARY COMPUTERPRODUCTS LINE BUT THE DECISION TO SELL FEDERAL SYSTEMS WAS MADE BY MR GERSTNER JEROME YORK IBM'S CHIEF FINANCIAL OFFICER SAID IN AN EARLIER INTERVIEW THAT IBM IS NOT HAVING CASHFLOW PROBLEMS HE SAID THEN THAT PROCEEDS FROM THE SALE WILL BE INVESTED IN OTHER IBM BUSINESSES IN ADDITION TO REDUCING OPERATING EXPENSES WHILE LORAL'S PROPOSED MEANS OF FINANCING ISN'T CLEAR THE COMPANY HAS BEEN INCREASING LIQUIDITY RECENTLY SELLING 200 MILLION IN DEBENTURES AND FILING A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING 300 MILLION IN SECURITIES AT LEAST IN THE NEAR TERM IT MAY BE ABLE TO COMPLETE THE TRANSACTION USING BANK FINANCING OR OTHER TRADITIONAL SOURCES LORAL HAS TAKEN THE LEAD BECAUSE IT IS WILLING TO PAY A PRICE OTHER BIDDERS FEEL IS EXCESSIVE HOWEVER SAID A MANAGER FOR ONE RIVAL BIDDER YOU'RE BUYING BRAND NAME SO YOU'RE GOING TO PAY A LITTLE BIT MORE AND MOST OF THE STUFF IS VERY SOLID TOP MANAGERS AT HUGHES AIRCRAFT THE LOS ANGELESBASED AEROSPACE UNIT OF GENERAL MOTORS HAVE PRESSED HARD AT TIMES TO WIN THE BIDDING FEDERAL SYSTEMS IS THE GM UNIT'S RIVAL IN MARKETS FOR SOME AIRCRAFTAVIONICS PRODUCTS AIRTRAFFIC CONTROL SYSTEMS AND INTELLIGENTVEHICLE HIGHWAY SYSTEMS HOWEVER THE TWO COMPANIES ARE TEAMED IN SEEKING NAVY CONTRACTS TO PLACE WORKSTATIONS ON COMBAT SHIPS SUBMARINES AND OTHER LOCATIONS MARTIN MARIETTA LIKE HUGHES HAS STOOD TO GAIN FROM ACCESS TO IBM'S SATELLITECONTROL TECHNOLOGY IN ADDITION TO NORTHROP LARGE NUMBERS OF DEFENSE AND AEROPACE COMPANIES HAVE EXPRESSED SOME INTEREST IN FEDERAL SYSTEMS' ASSETS IN THE LAST MONTH MR SCHWARTZ HAS VOWED LORAL WILL SURVIVE AND GROW IN THE SPEEDING CONSOLIDATION OF THE DEFENSE INDUSTRY CAUSED BY DEEP CUTS IN POSTCOLD WAR MILITARY SPENDING UNDER THE CHAIRMAN'S TIGHT MANAGERIAL GRIP LORAL HAS GROWN STEADILY THROUGH AN AGGRESSIVE SERIES OF ACQUISITIONS LAST YEAR IT BOUGHT LORAL VOUGHT SYSTEMS THE FORMER LTV CORP MISSILES UNIT FOR 261 MILLION EARLIER ACQUISITIONS IN RECENT YEARS INCLUDED FORD AEROSPACE AND RELATED HOLDINGS OF GOODYEAR TIRE & RUBBER CO IN THE FISCAL YEAR ENDED MARCH 31 LORAL SALES INCREASED 16 TO 334 BILLION OPERATING EARNINGS ROSE BY A SIMILAR PERCENTAGE IGNORING AN ACCOUNTING CHANGE AND AFTERTAX CHARGE FOR EARLY DEBT EXTINGUISHMENT MORE RECENT FINANCIAL RESULTS ALSO HAVE SHOWN GROWTH AND SOME ANALYSTS HAVE BEEN PROJECTING MORE INCREASES AHEAD IN SALES AND EARNINGS IBM BASED IN ARMONK NY REPORTED A NARROWERTHANEXPECTED LOSS OF 48 MILLION IN ITS THIRD QUARTER ON ESSENTIALLY FLAT REVENUE OF 1474 BILLION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY LORAL SHARES CLOSED AT 3225 UNCHANGED AND IBM ROSE 1625 TO 5525 9312130092 931213 TECHNOLOGY US LONG DISTANCE DISCLOSES SEC PROBE STOCK PRICE FALLS 23 SAN ANTONIO US LONG DISTANCE CORP SAID THE SECURITIES AND EXCHANGE COMMISSION BEGAN AN INFORMAL INQUIRY INTO THE COMPANY TOUCHING OFF A 23 TUMBLE IN ITS STOCK PRICE THE LONGDISTANCE TELEPHONE AND OPERATOR SERVICES CONCERN SAID IT LEARNED OF THE INQUIRY LATE THURSDAY AND HAD RECEIVED NO ADDITIONAL DETAILS AN SEC SPOKESWOMAN DECLINED TO COMMENT ON THE MATTER IN LIGHT OF THE INQUIRY US LONG DISTANCE SAID IT IS DELAYING A 16MILLIONSHARE OFFERING UNTIL THE SEC INQUIRY IS COMPLETED THE STOCK OFFER BASED ON THURSDAY'S CLOSING PRICE WOULD HAVE RAISED ABOUT 28 MILLION IN NASDAQ STOCK MARKET TRADING FRIDAY US LONG DISTANCE SHARES FELL 4 TO CLOSE AT 1350 IN A STATEMENT FRIDAY PARRIS H HOLMES JR THE COMPANY'S CHAIRMAN NOTED THAT US LONG DISTANCE'S FISCAL 1993 FINANCIAL REPORT HAD BEEN APPROVED BY ARTHUR ANDERSEN & CO THAT STATEMENT PROMPTED SOME ANALYSTS TO CONCLUDE THAT THE FCC INQUIRY WAS FOCUSING ON THE COMPANY'S LATEST RESULTS GERARD MCMAHON DIRECTOR OF RESEARCH AT THOMAS JAMES ASSOCIATES IN ROCHESTER NY SAID HE THOUGHT THE SEC MAY HAVE A PROCEDURAL PROBLEM WITH THE WAY US LONG DISTANCE REPORTS ITS FIGURES IF THERE IS SOME SORT OF PROBLEM HERE IT PROBABLY HAS TO DO WITH A DISAGREEMENT OVER FORM AND NOT SUBSTANCE HE SAID 9312130091 931213 BUSINESS BRIEF CHEUNG KONG HOLDINGS LTD JOINT VENTURE IS ESTABLISHED TO ALTER AMUSEMENT PARK CHEUNG KONG HOLDINGS LTD HAS JOINED FAR EAST HOTELS & ENTERTAINMENT LTD TO TRANSFORM A HONG KONG AMUSEMENT PARK INTO COMMERCIAL AND RESIDENTIAL PROPERTY CHEUNG KONG AND FAR EAST HOTELS PLAN TO EQUALLY OWN A JOINT VENTURE TO ACQUIRE A SITE OF ABOUT 360000 SQUARE FEET FOR 480 MILLION HONG KONG DOLLARS US622 MILLION FOR THE REDEVELOPMENT ACCORDING TO A PUBLIC NOTICE FRIDAY THE COST IS CALCULATED AT A PRICE OF 1300 HONG KONG DOLLARS A SQUARE FOOT FAR EAST HOTELS WILL CONTRIBUTE ITS SHARE OF 240 MILLION HONG KONG DOLLARS BY SELLING A 50 STAKE IN THE PROPERTY TO THE VENTURE THE LAND IS HELD BY FAR EAST HOTELS WHICH IS CONTROLLED BY THE DEACON CHIU FAMILY AND IS CURRENTLY OCCUPIED BY THE LAI CHI KOK AMUSEMENT PARK AND SUNG DYNASTY THEME PARK CHEUNG KONG IS THE LISTED FLAGSHIP OF HONG KONG BUSINESSMAN LI KASHING'S FINANCIAL EMPIRE THE COMPANY HAS MAJOR INTERESTS IN INVESTMENT HOLDING AND PROPERTY DEVELOPMENT NEGOTIATIONS OF THE LAND USE WILL BEGIN WITH THE HONG KONG GOVERNMENT AS SOON AS POSSIBLE 9312130090 931213 MARKETING & MEDIA ADVERTISING ROSTER OF SUPER BOWL SPONSORS FILLS UP EARLY WITH NEW PLAYERS BY KEVIN GOLDMAN WITH SEVEN WEEKS LEFT TO SUPER BOWL XXVII AT THE GEORGIA DOME IN ATLANTA THE NBC NETWORK HAS SOLD ALL BUT EIGHT OF ITS 56 UNITS OF HALFMINUTE SPOTS THE NETWORK A UNIT OF GENERAL ELECTRIC IS IN BETTER SHAPE THAN IT WAS LAST YEAR AT THIS POINT AND IT IS GETTING A 6 INCREASE TO 900000 FROM 850000 FOR A 30SECOND COMMERCIAL DURING THE BIG GAME ON FRIDAY KEITH TURNER NBC'S VICE PRESIDENT OF SPORTS SALES SAID THE NETWORK IS CLOSE TO SIGNING DEALS ON SIX OF THE REMAINING EIGHT SPOTS BUT DECLINED TO IDENTIFY THE POTENTIAL SPONSORS SEVERAL MEDIA BUYERS PRIVATELY SAY THAT NBC MAY FETCH AS MUCH AS 925000 FOR EACH OF THE FEW REMAINING SPOTS NBC STANDS TO SCORE APPROXIMATELY 504 MILLION FOR THE EARLY EVENING PIGSKIN AND ADVERTISING FEST ON JAN 30 SUPER BOWL'S VIRTUAL SELLOUT IS SIGNIFICANT FOR BROADCASTERS THE NO ROOM AT THE INN SIGN IS BEING ERECTED EARLY AT A TIME WHEN NETWORKS STILL MUST GROPE FOR ADVERTISERS WHO WILL PAY A PREMIUM RATE NO ONE HAD DOUBTS OF COURSE THAT THE SUPER BOWL WOULD ATTRACT BLUECHIP HIGHSPENDING SPONSORS BUT THE BROADCAST NETWORKS ARE RELIEVED THAT NBC IS ACHIEVING THE ENVIABLE FEAT SO EASILY ESPECIALLY SINCE THE SUPER BOWL COMES DURING THE FIRST QUARTER WHEN ADVERTISERS ALSO WANT TO SPEND BIG DOLLARS ON CBS'S TELECAST OF THE WINTER OLYMPICS BUT DON'T LOOK FOR SOME OF LAST YEAR'S SUPER BOWL SPONSORS A CHANGE IN ADVERTISING STRATEGY CONCERN ABOUT THE RISING COST OF A 30SECOND SPOT AND THE ABSENCE OF A NEW PRODUCT TO LAUNCH HAVE SIDELINED SOME PREVIOUS SPONSORS OTHERS MAY EMPHASIZE DIFFERENT PRODUCTS THAN IN THE PAST AND A CATEGORY RELATIVELY NEW TO THE SUPER BOWL MOVIES IS SLOWLY GROWING NEW TO THE SUPER BOWL WILL BE CHRYSLER WHICH WILL USE THE MARQUEE EVENT TO INTRODUCE THE NEON CAR THE COMPANY'S LATEST ENTRY INTO THE SMALLVEHICLE MARKET THIS YEAR VIEWERS CAN EXPECT FIVE TO SEVEN ADS PROMOTING MAJOR MOVIES ALTHOUGH MR TURNER DECLINES TO BE SPECIFIC LAST YEAR HE SAID THERE WERE ONLY TWO ADS FOR MOVIES ABSENT FROM THE SUPER BOWL THIS YEAR ARE SEVERAL FORMER ADVERTISERS INCLUDING FORD MOTOR WHICH SPOTLIGHTED ITS NEW LINCOLNMERCURY MARK VIII A YEAR AGO GILLETTE WHICH LAST YEAR INTRODUCED A LINE OF MEN'S TOILETRIES AND VH CORP'S LEE APPAREL WHICH HIGHLIGHTED NEW EXECUTIONS OF ITS HUMOROUS MAYBE IT'S A BETTER FITTING JEAN CAMPAIGN ALSO SAY GOODBYE TO SERVISTAR WHICH MADE ITS FIRST SUPER BOWL APPEARANCE LAST YEAR TO ADDRESS RIVAL HOMECENTER CHAINS THE COMPANY SAYS IT IS REALLOCATING ITS AD BUDGET TO EMPHASIZE PRINT SUBARU OF AMERICA A UNIT OF FUJI HEAVY INDUSTRIES BOUGHT 90 SECONDS LAST YEAR FOR ADS DONE BY WIEDEN & KENNEDY THE AGENCY NO LONGER HAS THE ACCOUNT AND THE SUPER BOWL NO LONGER HAS SUBARU COOPERS & LYBRAND THE ACCOUNTING FIRM USED THE SUPER BOWL LAST YEAR TO INTRODUCE ITS FIRST TELEVISION ADVERTISING WHICH CERTAINLY WAS A CHANGE FROM THE USUAL ELABORATE SPOTS THAT PERMEATE THE EVENT IT POSITIONED ITSELF AS A PROBLEM SOLVING RESOURCE SOME FELT THE AD WAS TOO SOMBER BUT THE COMPANY'S AGENCY HILL HOLLIDAY CONNORS COSMOPULOS IN BOSTON SAID THE RECALL RESEARCH WAS HIGHLY FAVORABLE AND THE FIRM WILL SOON RETURN TO THE AIRWAVES BUT NOT THE SUPER BOWL PHILIP MORRIS'S MILLER BREWING WHICH HAD TWO HALFMINUTE SPOTS IN LAST JANUARY'S SUPER BOWL IS ABSENT FROM THE GAME THIS YEAR BUT WILL BE ONE OF THE SPONSORS OF THE PREGAME FESTIVITIES WHICH ARE ALSO CLOSE TO BEING SOLD OUT THE NETWORK SAYS WE HAVE A MARKETING PROGRAM OTHER THAN ADVERTISING IN THE BROADCAST OF THE SUPER BOWL SAYS A SPOKESMAN FOR MILLER WE HAVE A PARTNERSHIP WITH UPPER DECK MAKERS OF TRADING CARDS ANHEUSERBUSCH WILL BE THE EXCLUSIVE BEER SPONSOR IN THE GAME BROADCASTING BUD BOWL VI SOME OF THE COMPANIES WITH THE MOST ANTICIPATED ADS ARE LOATH TO COMMENT ON THEIR PLANS NIKE IS ADVERTISING THIS YEAR FOR THE PAST TWO YEARS THE ATHLETIC SPORTSWEAR MANUFACTURER PRODUCED ELABORATE ANIMATED CARTOONS WITH THENCHICAGO BULLS STAR MICHAEL JORDAN AND BUGS BUNNY MR JORDAN RETIRED FROM BASKETBALL EARLIER THIS YEAR A SPOKESMAN SAYS NIKE WON'T COMMENT ABOUT ITS COMMERCIAL INSTEAD LETTING THE SPOT SPEAK FOR ITSELF MCDONALD'S AND PEPSICO ALSO WON'T SAY WHAT THEY'RE UP TO PEPSICO USED THE LAST SUPER BOWL TO INTRODUCE CRYSTAL PEPSI WHICH HASN'T PROVEN TO BE A HIT WITH CONSUMERS ONE COMPANY AMERICAN EXPRESS WHICH HAS ADVERTISED IN THE PAST SEVERAL SUPER BOWL TELECASTS WON'T EVEN SAY WHETHER IT PURCHASED A SPOT WE DON'T WANT TO TIP OFF OUR COMPETITORS SAYS A SPOKESWOMAN OF COURSE NBC SAYS IT ISN'T SURPRISED THAT ADVERTISERS ARE CLAMORING FOR THE CHANCE TO GET ON THE SUPER BOWL RATINGS ROSE LAST JANUARY 8 OVER THE PREVIOUS YEAR REACHING 66 OF US HOMES WITH TELEVISION SETS ACCORDING TO AC NIELSEN IT'S STILL THE BIGGEST EVENT ON TELEVISION THERE IS SAYS MR TURNER THIS IS THE GAME ADVERTISERS WANT TO BE ASSOCIATED WITH FOR THEM IT'S A SLAM DUNK THE BALTIMORE CITY COUNCIL VOTED TO BAN OUTDOOR ADS FOR BEER WINE AND LIQUOR IN NEIGHBORHOODS AND COMMERCIAL STRIPS A MOVE THAT ADVOCATES CALLED A FIRST IN THE COUNTRY THE ORDINANCE BANS ALCOHOL ADVERTISING ON BILLBOARDS FREESTANDING SIGNS AND ON THE SIDES OF BUILDINGS EXEMPTED ARE BILLBOARDS ALONG INTERSTATE HIGHWAYS IN INDUSTRIAL AREAS AND IN SEVERAL BALTIMORE SPORTS VENUES SUCH AS MEMORIAL STADIUM AND CAMDEN YARDS THE BAN GOES INTO EFFECT IN JANUARY COMMUNITY ACTIVISTS IN BALTIMORE AND OTHER CITIES WHO SUPPORT ALCOHOLADVERTISING RESTRICTIONS HAVE CLAIMED THAT PRODUCERS AND DISTRIBUTORS CONTRIBUTE TO PROBLEMS IN THE INNER CITY BY TARGETING PEOPLE WHO LIVE THERE WITH ADS WHEN OUR YOUNGSTERS GET INVOLVED IN ALCOHOL THAT IS THE STARTING POINT FOR HARDCORE DRUGS SAID BEV THOMAS CHAIRWOMAN OF THE CITY WIDE LIQUOR COALITION FOR BETTER LAWS AND REGULATIONS A GROUP SUPPORTING THE BILL THE ADS ARE PREDOMINANTLY IN THE LOWINCOME COMMUNITIES AND WE FEEL THEY ARE TARGETING OUR CHILDREN A SPOKESWOMAN FOR THE DISTILLED SPIRITS COUNCIL OF THE US WHICH REPRESENTS LIQUOR PRODUCERS AND MARKETERS SAID ITS MEMBERS' ADS DON'T TARGET MINORS THERE IS NO RELIABLE BASIS FOR CONCLUDING THAT ADVERTISING AFFECTS CONSUMPTION LET ALONE ABUSE LUGGAGE ACCOUNT AMERICAN TOURISTER CO ACQUIRED IN AUGUST BY ASTRUM INTERNATIONAL CORP MOVED ITS ADVERTISING ACCOUNT TO LEO BURNETT CHICAGO FROM LEONARD MONAHAN LUBARS & KELLY OF PROVIDENCE RI BURNETT CREATES ADS FOR ASTRUM'S OTHER LUGGAGE UNIT SAMSONITE CORP BILLINGS COULDN'T BE DETERMINED 9312130089 931213 BUSINESS BRIEF PAGES INC NET FOR DECEMBER QUARTER IS ESTIMATED AT 37 MILLION PAGES INC EXPECTS TO REPORT NET INCOME OF ABOUT 37 MILLION OR ROUGHLY 63 CENTS A SHARE FOR THE QUARTER ENDING DEC 31 CHAIRMAN S ROBERT DAVIS SAID REVENUE WILL BE ABOUT 44 MILLION THERE ARE NO COMPARABLE YEAREARLIER FIGURES BECAUSE THE COMPANY RECENTLY CHANGED TO A CALENDAR YEAR FROM A FISCAL YEAR FOR THE YEAR ENDING DEC 31 THE COMPANY EXPECTS TO REPORT EARNINGS OF ABOUT 1 MILLION OR ROUGHLY 15 CENTS A SHARE ON REVENUE OF ABOUT 77 MILLION THE AMLIN OHIO EDUCATIONAL PUBLISHING COMPANY'S SCHOOL BOOK FAIR UNIT ACQUIRED 18 MONTHS AGO WILL ACCOUNT FOR ABOUT 50 MILLION OF PAGE'S EXPECTED 1993 REVENUE MR DAVIS SAID IN AN INTERVIEW THE UNIT SELLS BOOKS DIRECTLY TO CHILDREN THROUGH SCHOOL BOOK FAIRS THE SCHOOLS AND PARENT TEACHER ASSOCIATIONS THAT HOST THE FIVEDAY FAIRS GET AN AVERAGE COMMISSION OF 30 ON THE BOOKS SOLD 9312130088 931213 SATURN TRADEIN DEALS GAIN INTENSITY AS GM UNIT GIRDS FOR COMPETITION BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SATURN THE CAR COMPANY THAT PRIDES ITSELF ON NOT OFFERING CUTRATE DEALS OR REBATES NOW IS RESORTING TO OLDFASHIONED SALESMANSHIP BY CAPITALIZING ON HIGH RESALE VALUES SATURN DEALERS HAVE BEGUN TO OFFER TRADEIN VALUES THAT ALLOW OWNERS OF 19911992 SATURNS TO BUY NEW '94 SATURNS WITH NO MONEY DOWN AND IN SOME CASES DEALERS ARE CLAIMING THE RESULTING MONTHLY PAYMENTS ARE LIKELY TO BE EQUAL TO OR LESS THAN THE PAYMENTS ON THE VEHICLE TRADED IN ASSUMING IT IS IN GOOD CONDITION WITH ONLY WEEKS UNTIL THE LAUNCH OF THE NEON CHRYSLER CORP'S EAGERLY AWAITED NEW SMALL CAR SATURN DEALERS APPEAR TO BE PRIMING THE SALES PUMP FOR WHAT IS EXPECTED TO BE A DUEL BETWEEN THE TWO SMALL CARS ALSO SATURN DEALERS FACE THE FORMIDABLE CHALLENGE OF KEEPING SALES MOMENTUM GOING WHILE THEY AWAIT THE COMING OF NEW MODELS IN 1996 THEIR FIRST SINCE THE GENERAL MOTORS CORP UNIT WAS LAUNCHED IN THE 1991 MODEL YEAR THE DEALERS ARE DOING WHAT GOOD BUSINESS PEOPLE OF ANY KIND WOULD DO SAYS CHRISTOPHER CEDERGREN AN INDUSTRY CONSULTANT WITH AUTOPACIFIC INC THEY ARE PREPARING THEMSELVES FOR ANY POSSIBLE COMPETITIVE THREAT THAT COMES IN THE NEXT THREE TO NINE MONTHS AND I THINK THAT IS NEON BUT SATURN WHICH HAS PLEDGED IT WILL NEVER USE SALES INCENTIVES OR FLEET SALES TO PROP UP VOLUMES CLAIMS IT HASN'T SPENT A DIME ON INSTIGATING THE DEALERS' TRADEIN BLITZ STILL THE ADDED SALES VOLUME SHOULD HELP SATURN IN ITS THREEYEAR QUEST FOR PROFITABILITY THE TRADEIN TACTIC ACTUALLY SPREAD NATIONALLY LIKE A RUMOR AS DEALERS SHARED SAMPLES OF PROMOTIONAL MAILERS FOR EXAMPLE CLIFF FINDLAY A SATURN DEALER IN LAS VEGAS SENT A MAILER THIS FALL TO ABOUT 3500 OWNERS OF 19911992 SATURNS AND QUICKLY WATCHED HIS SLIM INVENTORY OF USED SATURNS SOAR TO 250 ENOUGH TO PROMPT HIM TO SELL A FEW OF HIS USED SATURNS TO DEALERS IN THE REGION MR FINDLAY NOW EXPECTS TO SELL ABOUT 175 USED SATURNS THIS MONTH UP FROM HIS USUAL MONTHLY VOLUME OF 50 THE DEALERS ARE CAPITALIZING ON SATURN RESALE VALUES THAT ARE AMONG THE HIGHEST IN THE CAR BUSINESS USED SATURNS IN GOOD CONDITION CURRENTLY FETCH 80 OR MORE OF THEIR ORIGINAL WHOLESALE VALUE A LEVEL THAT'S BEING MATCHED ONLY BY SOME LUXURY MODELS FROM TOYOTA MOTOR CORP'S LEXUS DIVISION SAY THE PUBLISHERS OF THE KELLEY BLUE BOOK AN IRVINE CALIF INDUSTRY GUIDE TO USEDCAR VALUES HOWEVER SOME SATURN DEALERS ARE OFFERING TRADEIN VALUES EQUAL TO 90 OF A USED SATURN'S ORIGINAL STICKER PRICE LESS RECONDITIONING COSTS THE DEALERS LIKE STOCKPILING HEALTHY SUPPLIES OF HOTSELLING USED CARS BECAUSE THEY TEND TO OFFER BETTER MARGINS THAN NEW CARS BUT ONCE ON THE LOT THE CARS MUST MOVE QUICKLY BECAUSE RESALE VALUES TEND TO DROP OVER TIME AND OFTEN WITHIN MONTHS IN FACT THE TRADEIN PROMOTIONS COULD DIE DOWN SOON IF SATURN'S PLANT IN SPRING HILL TENN KEEPS UP ITS ROBUST THREESHIFT PRODUCTION SCHEDULE WHICH STARTED LAST SUMMER THROUGH OCTOBER SATURN'S PRODUCTION LEVELS WERE ALREADY MORE THAN 57000 VEHICLES OR 33 AHEAD OF YEAREARLIER LEVELS AND GM ALREADY HAS DISCUSSED BUILDING A SECOND PLANT IF DEMAND MERITS 9312130087 931213 BUSINESS BRIEF BAKER HUGHES INC APPEALS COURT BACKS AWARD OF 103 MILLION TO TRW A FEDERAL APPEALS COURT UPHELD A 103 MILLION JUDGMENT AGAINST BAKER HUGHES INC HOUSTON STEMMING FROM A 1989 SUIT ALLEGING FRAUD BROUGHT BY TRW INC THE ACTION BY THE US FIFTH CIRCUIT COURT OF APPEALS IN NEW ORLEANS AFFIRMED AN APRIL 1992 JURY VERDICT AND JUDGMENT OF 77 MILLION AND ADDED INTEREST TRW BASED IN CLEVELAND SUED BAKER HUGHES AND ITS BOSTONBASED SUBSIDIARY BIRD MACHINE CO FOR FRAUD AFTER CENTRIFUGES TRW PURCHASED FROM BIRD FAILED AND BIRD DENIED THE MACHINES WERE FLAWED THE CUSTOMBUILT CENTRIFUGES WERE PURCHASED FOR USE IN CLEANING UP HAZARDOUS WASTE A SPOKESMAN FOR BAKER HUGHES SAID THE COMPANY IS CONSIDERING ITS OPTIONS AND PLANS TO SEEK A REHEARING 9312130086 931213 RENAULT OFFICIAL PREDICTS GROWTH IN EUROPE CAR SALES SPECIAL TO THE WALL STREET JOURNAL PARIS THE EUROPEAN CAR MARKET IS LIKELY TO EXPAND 4 TO 5 IN 1994 FOLLOWING AN EXPECTED DECLINE OF 15 OR MORE IN 1993 A SENIOR OFFICIAL OF FRANCE'S STATECONTROLLED RENAULT SA PREDICTED PATRICK FAURE RENAULT'S DEPUTY GENERAL MANAGER AND SALES DIRECTOR SAID FRENCH CAR SALES COULD EXPAND AT A SLIGHTLY FASTER PACE THAN THE EUROPEAN AVERAGE THE FRENCH CAR MANUFACTURERS' ASSOCIATION INDICATED RECENTLY THAT THE FRENCH MARKET COULD EXPAND BY 76 NEXT YEAR AFTER THIS YEAR'S 183 SLUMP MR FAURE SAID THAT AT PRESENT WE SEEM TO BE IN THE TROUGH OF THE RECESSION WE'RE STARTING TO SEE SIGNS OF AN UPTICK BUT IT'S STILL FAR FROM BEING A BOOM RENAULT'S COMMERCIAL POSITION SHOULD BE HELPED BY THE LAUNCH IN FEBRUARY OF THE LAGUNA WITH THE ARRIVAL OF THE LAGUNA RENAULT WILL HAVE LAUNCHED THREE NEW MODELS IN 20 MONTHS GIVING THE GROUP A YOUNGER MODEL RANGE THAN THAT OF ITS FRENCH RIVAL PSA PEUGEOT CITROEN PEUGEOT MAY HAVE A SLIGHT ADVANTAGE IN THE EARLY MONTHS OF NEXT YEAR HOWEVER AS IT WILL HAVE A COMPLETE RANGE OF DIESELENGINE CARS THE DIESEL VERSION OF THE LAGUNA WON'T BE OFFERED UNTIL LATER IN THE YEAR MR FAURE SAID RENAULT EXPECTS TO POST EARNINGS FOR 1993 THAT WILL BE THE LEAST BAD OF ANY EUROPEAN CAR MAKER HE DIDN'T ELABORATE RENAULT PREVIOUSLY REPORTED A PRETAX PROFIT OF ONE BILLION FRANCS FOR THE FIRST NINE MONTHS OF 1993 COMPARED WITH PROFIT OF 75 BILLION FRANCS A YEAR EARLIER COMMENTING ON THE DECISION BY THE MANAGEMENT OF SWEDEN'S AB VOLVO TO BACK AWAY FROM THE PLANNED MERGER OF THE TWO CAR GROUPS MR FAURE SAID VOLVO WANTS TO PURSUE THE ALLIANCE THAT HAS LINKED RENAULT AND VOLVO SINCE 1990 HE SUGGESTED THAT THE TWO GROUPS CAN PURSUE COMMERCIAL COOPERATION AND SOME ACTIVITIES SUCH AS THE JOINT DEVELOPMENT AND SHARING OF COMPONENTS LIKE ENGINES AND GEARBOXES WHICH WOULD GENERATE MUTUAL SAVINGS BUT HE SAID THERE CLEARLY ARE AREAS WHERE RENAULT AND VOLVO CANNOT PURSUE THEIR COLLABORATION NOTABLY THEIR JOINT LONGTERM INDUSTRIAL STRATEGY MR FAURE SAID THE ABORTED MERGER THEORETICALLY MAKES THE PRIVATIZATION OF RENAULT EASIER AS VOLVO'S 20 INTEREST IN RENAULT WOULD MAKE IT THE FRENCH GROUP'S NATURAL SHAREHOLDER OF REFERENCE THE FRENCH GOVERNMENT INDICATED IT WANTS TO PRIVATIZE RENAULT IN THE SECOND HALF OF 1994 9312130085 931213 AT&T TO GIVE FOREIGN UNITS MORE AUTONOMY EACH IS TO GET OWN CEO UNDER PLAN TO INCREASE REVENUE FROM OVERSEAS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO GRAPPLING WITH SLOW GROWTH IN THE US IS SETTING UP FOREIGN UNITS WITH THEIR OWN CHIEF EXECUTIVE OFFICERS TO PURSUE THE POTENTIALLY HUGE NEW MARKETS IN ASIA EUROPE AND LATIN AMERICA THE NEW CEOS ONE OF WHOM HAS ALREADY BEEN APPOINTED TO HEAD ASIAN OPERATIONS WILL HAVE THE POWER TO SET UP INDIVIDUAL COUNTRY OPERATIONS SET LOCAL PRICING FOR AT&T PRODUCTS AND SERVICES AND EVEN HUNT FOR MERGERS AND JOINT VENTURES TO HELP AT&T'S GLOBAL EXPANSION AT&T CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT ALLEN HAS BEEN FRUSTRATED WITH THE COMPANY'S SLOW PROGRESS IN THE FOREIGN MARKETS WHICH PROMISE FAR HIGHER GROWTH DESPITE HIS INITIAL GOAL TO DERIVE HALF OF AT&T'S REVENUE FROM OVERSEAS OPERATIONS BY 2000 FOREIGN SALES ACCOUNT FOR ONLY 24 OF ABOUT 65 BILLION IN TOTAL ANNUAL REVENUE TODAY MR ALLEN HAS BEEN FORCED TO BACK OFF SOMEWHAT AIMING TO ACHIEVE THE 50 MARK 10 YEARS FROM NOW MR ALLEN IS SAID TO BELIEVE THAT AT&T'S CURRENT STRUCTURE OVERSEAS IS A DRAG ON HIS GOAL WE'RE LAUNCHING SOMETHING NEW AS A RESULT AT&T WILL NEVER BE THE SAME MR ALLEN TOLD SENIOR OFFICERS A FEW WEEKS AGO IN A CONFERENCE CALL ACCORDING TO A TRANSCRIPT CIRCULATING AROUND AT&T BUT AT&T WILL BE FASTER MORE EFFECTIVE AND BETTER ABLE TO SEIZE THE ENORMOUS OPPORTUNITY THAT MARKETS OUTSIDE THE US REPRESENT FOR OUR COMPANY WHILE AT&T'S US BUSINESS GROWS AT LESS THAN 5 A YEAR CHINA OTHER NATIONS IN ASIA AND COUNTRIES IN LATIN AMERICA AND EASTERN EUROPE ARE MODERNIZING ARCHAIC PHONE SYSTEMS AND PROMISE BIG ORDERS CHINA IS EXPECTED TO ACQUIRE 12 BILLION IN NEW SWITCHING GEAR ALONE EVERY YEAR FOR THE NEXT THREE DECADES VIRTUALLY ALL MAJOR DECISIONS ARE MADE IN THE US REQUIRING FOREIGN PROPOSALS TO SNAKE THEIR WAY UP THROUGH MYRIAD DEPARTMENTS BEFORE GETTING APPROVAL THAT'S MUCH TOO FAR FROM OUR CUSTOMERS TO ACHIEVE ONSITE RAPID DECISIONMAKING SAID VICTOR PELSON CHIEF OF AT&T GLOBAL OPERATIONS THE MARKET IS CHANGING VERY RAPIDLY AT&T IS A RELATIVE NEWCOMER IN MANY OVERSEAS MARKETS THE US GOVERNMENT FORCED THE COMPANY TO SELL OFF ITS INTERNATIONAL BUSINESS IN THE EARLY 1920S THOSE OPERATIONS BECAME ITT CORP AT&T WASN'T ALLOWED BACK IN UNTIL AFTER ITS BREAKUP IN 1984 WHILE RIVALS ALCATELALSTHOM OF FRANCE WHICH ENDED UP OWNING THE ITT ASSETS AND SWEDEN'S LM ERICSSON HAVE BEEN ENTRENCHED FOR DECADES AS PART OF THE NEW REORGANIZATION AT&T HAS BEGUN CONSOLIDATING ITS OVERSEAS FACILITIES WHICH INCLUDE 39 PLANTS IN 24 COUNTRIES INTO THREE REGIONAL HUBS THE NEW ASIA/PACIFIC UNIT IS BASED IN HONG KONG A EUROPEAN UNIT BASED IN BRUSSELS WILL ALSO RUN MIDDLE EAST AND AFRICA BUSINESSES A LATIN AMERICA UNIT WILL BE BASED IN CORAL GABLES FLA HIRED TO HEAD AT&T'S ASIA UNIT IS WALTER SOUSA 50 YEARS OLD FORMERLY THE CHIEF OPERATING OFFICER OF HONG KONGBASED ASTEC PLC AND A 20YEAR VETERAN OF HEWLETTPACKARD CO'S ASIAN BUSINESS OTHER CEO APPOINTMENTS ARE EXPECTED EARLY NEXT YEAR THE NEW CEOS OF THESE UNITS WILL BE FULL MEMBERS OF AT&T'S POWERFUL GLOBAL OPERATIONS TEAM LED BY MR PELSON THE TEAM INCLUDES THE CHIEF EXECUTIVES OF AT&T'S FOUR GROUPS COMMUNICATION SERVICES NETWORK SYSTEMS MULTIMEDIA AND NCR CORP RECENTLY MR ALLEN ASSIGNED WILLIAM WARWICK REGARDED AS THE AT&T EXECUTIVE WHO TURNED AROUND AT&T'S AILING CONSUMER PHONE AND CHIP BUSINESSES TO BUILD AN AT&T CHINA UNIT MR PELSON SAID THE CHINA UNIT HAS BEEN GRANTED SPECIAL AUTONOMY UNDER THE REVAMPED MANAGEMENT STRUCTURE MR WARWICK WILL BE ALLOWED TO RUN HIS BUSINESS INDEPENDENTLY OF THE NEW ASIA CEO AND EXPAND THE COMPANY INTO A FULLFLEDGED SUPPLIER OF NETWORK EQUIPMENT TO THE CHINESE GOVERNMENT AND ITS CHIEF RESEARCH AND DEVELOPMENT COLLABORATOR 9312130084 931213 BUSINESS BRIEF PORSCHE AG RECALL IS SET TO FIX PROBLEM CAUSING FIRES IN 911 CARRERA GERMANY'S PORSCHE AG IS RECALLING ALMOST ALL THE 19891992 911 CARRERA SPORTS CARS IT SOLD IN THE US TO FIX A PROBLEM THAT HAS CAUSED 12 ENGINECOMPARTMENT FIRES THE COMPANY IS RECALLING 11346 CARS TO FIX A PROBLEM WITH A HEATER BLOWER THAT LED TO THE FIRES MEANWHILE THE AUTO MAKER IS ALSO RECALLING 1149 OF ITS 911 TURBO AND 911 AMERICA ROADSTER MODELS TO FIX A BRAKE PROBLEM ITS NORTH AMERICAN SALES ARM BASED IN NEVADA SAID IT IS UNAWARE OF ACCIDENTS DUE TO THE BRAKE PROBLEM THE RECALLS AFFECTING MORE THAN 12000 CARS ARE A SETBACK FOR PORSCHE WHICH LATELY HAS BEEN SELLING ABOUT 4000 CARS A YEAR IN THE US DOWN FROM MORE THAN 30000 IN THE MID 1980S AND IS FACING GROWING COMPETITION FROM JAPANESE AUTO MAKERS 9312130083 931213 BUSINESS BRIEF HUFFY CORP BICYCLE MANUFACTURER PLANS NEW PLANT STOCK BUYBACK HUFFY CORP DAYTON OHIO SAID IT PLANS TO BUILD A NEW 15 MILLION TO 20 MILLION BICYCLE MANUFACTURING PLANT HUFFY SAID THE NEW PLANT WHICH WILL PRODUCE MORE THAN ONE MILLION UNITS A YEAR WILL ALLOW THE COMPANY TO IMPROVE CUSTOMER SERVICE AND BOOST MARKET SHARE THE COMPANY EXPECTS TO PICK A SITE FOR THE PLANT IN THE NEXT SEVERAL WEEKS IT SHOULD BEGIN PRODUCTION IN LATE 1994 HUFFY HAS ONE BICYCLE PLANT IN CELINA OHIO HUFFY ALSO SAID ITS DIRECTORS AUTHORIZED THE COMPANY TO BUY BACK AS MUCH AS ONE MILLION COMMON SHARES IN THE OPEN MARKET FROM TIME TO TIME A SPOKESWOMAN SAID THE BUYBACK WILL ALLOW THE COMPANY TO PURCHASE SHARES WHEN THEIR PRICE FALLS OFFERING AN ATTRACTIVE OPPORTUNITY IT ALSO LETS THE COMPANY SUPPORT THE STOCK WHEN IT DROPS FOR NO FUNDAMENTAL REASON THE SPOKESWOMAN SAID 9312130082 931213 TECHNOLOGY BRIEF TOCOR II INC UNITS JUMPED 57 ON NEWS OF PLANNED SALE TO CENTOCOR UNITS OF DRUG RESEARCH COMPANY TOCOR II INC SOARED 57 IN TRADING ON NEWS THAT AFFILIATE CENTOCOR INC PLANS TO ACQUIRE THE COMPANY FOR ABOUT 90 MILLION IN STOCK CENTOCOR BASED IN MALVERN PA LAUNCHED TOCOR II TWO YEARS AGO TO RAISE FUNDS AND DEVELOP RESEARCH THE TOCOR UNITS CLOSED AT 3625 A SHARE UP 1325 A SHARE IN NASDAQ STOCK MARKET TRADING CENTOCOR OFFERED TO BUY ALL 22 MILLION UNITS OUTSTANDING OF TOCOR II AND TAKE CONTROL OF THE COMPANY'S PEPTIDE RESEARCH AND CERTAIN CASH ASSETS EACH UNIT CONSISTS OF ONE TOCOR II COMMON SHARE ONE SERIES T WARRANT TO BUY ONE CENTOCOR COMMON SHARE AND ONE CALLABLE WARRANT TO BUY ONE CENTOCOR COMMON SHARE CENTOCOR IS OFFERING 40 FOR EACH UNIT THE PRICE TOCOR HOLDERS ORIGINALLY PAID PAYABLE IN SHARES OF CENTOCOR COMMON BASED ON THE AVERAGE CLOSING PRICE OF THE STOCK OVER 30 TRADING DAYS CENTOCOR SAID IT EXPECTS TO ISSUE FROM 273 SHARES TO 32 SHARES PER UNIT CENTOCOR STOCK CLOSED AT 1225 DOWN 125 CENTS IN NASDAQ TRADING FRIDAY BASED ON THAT PRICE CENTOCOR WOULD ISSUE ABOUT 73 MILLION COMMON SHARES IN THE OFFER 9312130081 931213 BUSINESS BRIEF CONTINENTAL AG UNIT PLANS TO CUT PRODUCTION AT MAYFIELD KY TIRE PLANT GENERAL TIRE INC SAID IT IS SHIFTING SOME PASSENGERTIRE PRODUCTION TO OTHER PLANTS FROM ITS MAYFIELD KY FACILITY AFTER WORKERS THERE REJECTED A CONTRACT PROPOSAL GENERAL AN AKRON OHIO UNIT OF GERMANY'S CONTINENTAL AG SAID IT WOULD SHIFT 40 OF THE PLANT'S PASSENGERTIRE PRODUCTION OVER THE NEXT 30 DAYS CUTTING 190 WORKERS THE PLANT EMPLOYS 1600 IT ALSO SAID IT WILL FREEZE CAPITAL EXPENDITURES AT THE PLANT GENERAL EARLIER THIS YEAR ASKED THE UNION UNITED RUBBER WORKERS LOCAL 665 TO REOPEN ITS CONTRACT WHICH DOESN'T EXPIRE UNTIL OCTOBER 1994 THE COMPANY PROPOSED PAYING EMPLOYEES BASED ON PERFORMANCE AND SHIFTING TO ROTATING WORK SCHEDULES SUCH AS TWO DAYS ON FOLLOWED BY TWO DAYS OFF AND ALSO PROPOSED AN EARLYRETIREMENT SUPPLEMENT 9312130080 931213 BUSINESS BRIEF KAISER ALUMINUM CORP COMPANY TO TAKE CHARGES AND SELL PREFERRED SHARES KAISER ALUMINUM CORP SAID IN HOUSTON THAT IT EXPECTS TO TAKE AS MUCH AS 160 MILLION IN PRETAX CHARGES IN THE FOURTH QUARTER AND INTENDS TO SELL 75 MILLION IN PREFERRED STOCK THE CHARGES INCLUDE A PREVIOUSLY ANNOUNCED 30 MILLION TO 40 MILLION TO COVER THE COST OF RESTRUCTURING A PLANT IN SPOKANE WASH BETWEEN 35 MILLION AND 55 MILLION IN CHARGES ARE PLANNED FOR CERTAIN OTHER MATTERS A COMPANY SPOKESMAN SAID DECLINING TO SPECIFY WHAT THEY ARE IN ADDITION THE COMPANY WILL RECORD A 40 MILLION TO 65 MILLION CHARGE AGAINST STOCKHOLDERS' EQUITY BUT NOT AGAINST EARNINGS TO REFLECT A LOWERING OF THE RATE OF RETURN PROJECTED FOR ITS PENSION FUNDS THE COMPANY STRUGGLING BECAUSE OF DEPRESSED ALUMINUM PRICES IS 67OWNED BY MAXXAM INC WHICH ALSO HAS INTERESTS IN FOREST PRODUCTS AND REAL ESTATE 9312130078 931213 JAPAN'S MOVE ON RICE IMPORTS MAY CAUSE SPLIT BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE JAPANESE GOVERNMENT IS EXPECTED TO AGREE FORMALLY TO END ITS BAN ON RICE IMPORTS TODAY BUT A POSSIBILITY REMAINS THAT THE DECISION COULD SPLIT THE RULING COALITION PRIME MINISTER MORIHIRO HOSOKAWA AND OTHER CABINET MINISTERS HAVE ALREADY PUBLICLY ENDORSED THE MOVE WHILE THE LARGEST BLOC IN THE GOVERNING ALLIANCE THE SOCIALIST PARTY HAS YET TO APPROVE THE DECISION A TOP PARTY OFFICIAL SAID ON A TELEVISION TALK SHOW YESTERDAY THAT THE SOCIALISTS WERE STILL OPPOSED TO RICE IMPORTS AND REFUSED TO PROMISE THAT THE PARTY WOULD REMAIN IN THE COALITION JAPAN IS UNDER PRESSURE TO CONSENT THIS WEEK TO OPEN ITS RICE MARKET AS PART OF THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE MULTILATERAL NEGOTIATIONS TAKING PLACE IN GENEVA ARE SUPPOSED TO BE CONCLUDED BY WEDNESDAY MOST ANALYSTS HAVE DISMISSED THE SOCIALISTS' RECALCITRANCE AS PUBLIC HISTRIONICS MADE MERELY TO SHOW THE PARTY FAITHFUL THAT THE LEADERSHIP FOUGHT HARD TO AVOID RICE IMPORTS THE CONVENTIONAL WISDOM IS THAT IN THE END THE SOCIALISTS WILL GRUDGINGLY ACCEPT THE DECISION AND MAINTAIN SUPPORT FOR MR HOSOKAWA BUT MR HOSOKAWA HAS ONLY A THIN LEGISLATIVE MAJORITY AND THE DEFECTION OF JUST A FEW DISSIDENT SOCIALISTS COULD THREATEN HIS GOVERNMENT THE OTHER SIX PARTIES IN THE COALITION ARE EXPECTED TO GIVE THE PREMIER FULL SUPPORT THE QUESTION OF HOW THE SOCIALIST PARTY WILL RESOLVE THIS IS VERY DIFFICULT WATARU KUBO THE PARTY'S SECRETARY GENERAL SAID IN LEAVING THE GOVERNMENT WE WOULD HAVE TO SERIOUSLY CONSIDER WHAT IT WOULD MEAN TO DESTROY THE GOVERNMENT HE ADDED THE RULING COALITION TOOK POWER IN AUGUST ENDING 38 YEARS OF RULE BY THE LIBERAL DEMOCRATIC PARTY IF WE EASILY ALLOWED THE LDP TO COME BACK TO POWER OUR RESPONSIBILITY WOULD NOT BE LIGHT MR KUBO SAID MR KUBO SAID THE PARTY LEADERSHIP WOULD MEET AGAIN TODAY TO CONSIDER WHAT THEY WOULD DO AND REFUSED REPEATEDLY TO SAY WHICH WAY THE PARTY WAS LEANING MR HOSOKAWA'S PROBLEMS HAVE BEEN COMPOUNDED BY THE SEEMINGLY INEPT WAY HE HAS HANDLED THE ISSUE HE HAS REPEATEDLY ANNOUNCED PLANS TO PUT THE MATTER TO A CABINET VOTE ONLY TO DELAY A BIT LONGER HE FAILED INITIALLY TO REVEAL THE EXTENT OF CONCESSIONS JAPAN WOULD BE EXPECTED TO MAKE UNDER THE GATT PROPOSAL DRAWING HEAVY CRITICISM FROM THE OPPOSITION AND EVEN FROM SOME COALITION MEMBERS IF MR HOSOKAWA CAN SURVIVE THE RICE OPENING AS MOST ANALYSTS EXPECT HE STILL FACES A NUMBER OF CHALLENGES THE CURRENT SESSION OF PARLIAMENT IS SCHEDULED TO END WEDNESDAY BUT MR HOSOKAWA HAS YET TO WIN APPROVAL FOR AMBITIOUS POLITICAL REFORM LEGISLATION THE CENTERPIECE OF HIS AGENDA HE IS LIKELY TO ASK FOR AN EXTENSION OF THE CURRENT SESSION PERHAPS UNTIL THE END OF JANUARY BUT IT ISN'T CLEAR HE HAS THE NEEDED SUPPORT 9312130077 931213 NEWSPAPER GROUP RECEIVES CLEARANCE FOR SALES NETWORK BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT APPROVED A PLAN BY A GROUP OF DAILY AND WEEKLY NEWSPAPERS TO OPERATE A NETWORK TO SELL LOCAL NEWSPAPER ADVERTISING SPACE NATIONALLY THE NEWSPAPER ASSOCIATION OF AMERICA A TRADE ASSOCIATION OF DAILY AND WEEKLY NEWSPAPERS FORMED THE NATIONAL NEWSPAPER NETWORK TO SELL SPACE IN NEWSPAPERS ACROSS THE COUNTRY TO NATIONAL ADVERTISERS AT A SINGLE PRICE IN A LETTER TO THE ASSOCIATION ROBERT LITAN DEPUTY ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID THE DEPARTMENT HAD NO PLANS TO CHALLENGE THE NETWORK ON ANTITRUST GROUNDS WHILE THE DEPARTMENT WOULD BE CONCERNED IF THE EFFECT OF THE PROPOSED VENTURE WOULD BE TO INCREASE THE LIKELIHOOD THAT NNN OR ANY OF ITS MEMBERS COULD SUCCESSFULLY COORDINATE THEIR ACTIONS RESULTING IN HIGHER PRICES CHARGED TO ADVERTISERS MR LITAN'S LETTER SAID THE DEPARTMENT HAS CONCLUDED THAT THE PROPOSED VENTURE IS UNLIKELY TO HAVE SUCH EFFECTS NICK CANNISTRARO CHIEF MARKETING OFFICER OF THE ASSOCIATION SAID THE DECISION BY THE DEPARTMENT'S ANTITRUST DIVISION WILL BE AN IMPORTANT STEP IN NEWSPAPER EFFORTS TO GAIN LONG LOST NATIONAL ADVERTISING BUSINESS THIS WILL ALLOW US TO BE MUCH MORE COMPETITIVE BECAUSE WE CAN BE MUCH MORE FOCUSED IN OUR SELLING EFFORTS HE SAID THE NETWORK WILL BE OPERATIONAL BY JUNE THE NETWORK PLANS TO TARGET CERTAIN INDUSTRIES THAT SPEND LESS THAN 10 OF THEIR ADVERTISING BUDGETS ON NEWSPAPERS ACCORDING TO THE DEPARTMENT THESE INCLUDE TOILETRIES FOOD MEDICAL PRODUCTS HOUSEHOLD SUPPLIES ALCOHOLIC BEVERAGES AND AUTOMOBILES BECAUSE SO MUCH OF THEIR DECLINING ADVERTISING DOLLAR IS SPENT ELSEWHERE ANTITRUST OFFICIALS CONCLUDED THOSE INDUSTRIES HAVE AMPLE ALTERNATIVES TO NEWSPAPERS THE ALTERNATIVES PRECLUDE THE NETWORK FROM EXERCISING DOMINANT POWER OVER THE ADVERTISERS THE CENTRAL SELLING AND BILLING FACILITIES OF THE NETWORK ALLOW ADVERTISERS TO DELIVER THE SAME MESSAGE ABOUT THEIR PRODUCTS IN AS MANY LOCAL MARKETS AS THEY CHOOSE THIS IS A NEW SERVICE THAT NO INDIVIDUAL NEWSPAPER ACTING UNILATERALLY CAN OFFER TO ADVERTISERS MR LITAN WROTE NNN MAY THEREFORE HAVE THE PROCOMPETITIVE BENEFIT OF ENABLING NEWSPAPERS BETTER TO COMPETE WITH OTHER MEDIA FOR NATIONAL ADVERTISING THE NATIONAL NEWS NETWORK IS OPEN TO ALL NEWSPAPERS DAILY OR WEEKLY MEMBERSHIP IN THE ASSOCIATION ISN'T REQUIRED EACH NETWORK MEMBER'S RATES FOR ADVERTISING OTHER THAN THAT OBTAINED THROUGH THE NETWORK ARE KEPT CONFIDENTIAL NETWORK MEMBERS AREN'T BOUND BY EXCLUSIVE CONTRACTS AND ARE FREE TO SELL ADVERTISING OUTSIDE THE JOINT VENTURE 9312130076 931213 ECONOMY CONSUMERS ARE FACING LOW INFLATION THANKS TO DECLINES IN THE COST OF ENERGY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICAN CONSUMERS ARE FACING LESS IN THE WAY OF PRICE INCREASES THAN THEY WERE AT THIS TIME LAST YEAR THANK LOWER ENERGY COSTS THE LABOR DEPARTMENT SAID FRIDAY THAT CONSUMER PRICES INCHED UP 02 IN NOVEMBER AN INCREASE RESTRAINED LARGELY BY A 13 DROP IN ENERGY PRICES ENERGY PRICES HAVE RISEN ONLY FOUR TIMES THIS YEAR AND ONLY ONCE IN THE PAST SEVEN MONTHS AS A RESULT INFLATION SLOWED TO A 28 ANNUAL RATE IN THE FIRST 11 MONTHS OF THE YEAR COMPARED WITH A 29 ANNUAL RATE DURING THE YEAREARLIER PERIOD BUT EVEN EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS PRICES ARE INCREASING AT A SLOWER PACE THAN LAST YEAR THEY ARE UP AT A 31 ANNUAL RATE COMPARED WITH 33 LAST YEAR SEPARATELY THE UNIVERSITY OF MICHIGAN INDEX FOR CONSUMER CONFIDENCE JUMPED TO 877 IN EARLY DECEMBER FROM 812 IN NOVEMBER ACCORDING TO PEOPLE WHO HAVE SEEN THE REPORT THE RISE IN THE INDEX WHICH IS AVAILABLE ONLY TO PRIVATE SUBSCRIBERS SUGGESTS THAT THE MOOD OF AMERICANS IS IMPROVING THAT IS CONSISTENT WITH AN 11POINT SURGE IN THE CONFERENCE BOARD'S INDEX OF CONSUMER CONFIDENCE LAST MONTH ENERGY COSTS ACCOUNT FOR ROUGHLY 7 OF THE CONSUMER PRICE INDEX AND 5 OF CONSUMER PURCHASES GO TOWARD ENERGY EXPENSES MOREOVER LOWER ENERGY COSTS HAVE A BIG RIPPLE EFFECT ACROSS MANY GOODS AND SERVICES FOR INSTANCE HOUSING COSTS INCREASED A TINY 01 IN NOVEMBER AS PRICES FOR FUEL AND OTHER UTILITIES DROPPED AND PRIVATETRANSPORTATION COSTS FELL 01 REFLECTING A DOWNTURN IN THE PRICE OF MOTOR FUELS EVEN MORE ENCOURAGING IS THE BIG DROP IN OIL PRICES AFTER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ENDED ITS MEETING LATE LAST MONTH WITHOUT AGREEING TO REDUCE PRODUCTION A DECLINE THAT ISN'T REFLECTED IN THE LATEST PRICE REPORT ANALYSTS CONCLUDED THAT CONSUMER PRICES MAY VERY WELL BE RESTRAINED INTO NEXT YEAR WE CAN LOOK FORWARD TO MORE GOOD INFLATION NEWS IN 1994 BECAUSE OF LOWER ENERGY COSTS SAID JOSEPH LIRO SG WARBURG CHIEF ECONOMIST OF COURSE NOT EVERYTHING IS AFFECTED BY LOWER ENERGY COSTS AUTOMOBILEFINANCE CHARGES AND USEDCAR PRICES BOTH JUMPED IN NOVEMBER PUBLICTRANSPORTATION COSTS ROSE 29 LARGELY BECAUSE OF A 41 JUMP IN AIRLINE FARES BUT RECENT FARE CUTS BY TWA UNITED AIRLINES AMERICAN AIRLINES AND DELTA AIR LINES SUGGEST CONTINUED RESISTANCE ON THE PART OF CONSUMERS TO HIGH PRICES OVERALL AIRLINE FARES ARE UP ROUGHLY 13 FOR THE YEAR BECAUSE THIS YEAR'S DISCOUNTS AREN'T AS STEEP AS LAST YEAR'S ACCORDING TO MR LIRO THE LABOR DEPARTMENT ALSO SAID AVERAGE WEEKLY EARNINGS ROSE 03 IN NOVEMBER THE INCREASE STEMMED FROM A 03 RISE IN WEEKLY HOURS AND A 02 INCREASE IN HOURLY EARNINGS THOSE GAINS WERE PARTIALLY OFFSET BY THE SLIGHT RISE IN THE CONSUMER PRICE INDEX ALL FIGURES ARE ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR NOVEMBER NOVEMBER CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM NOVEMBER 1992 WERE 9312130075 931213 LETTERS TO THE EDITOR WHEN THERE'S A REASON TO INTERVENE WE MOVE YOUR NOV 29 EDITORIAL ANTITRUST IN REVERSE ATTACKING THE JUSTICE DEPARTMENT'S EFFORT TO BLOCK THE PROPOSED SALE BY GENERAL MOTORS OF ITS ALLISON TRANSMISSION DIVISION TO ZF FRIEDFRICHSHAFEN MISSES THE MARK ALLISON AND ZF IF ALLOWED TO MERGE WOULD CONTROL ROUGHLY 90 OF ALL SALES OF HEAVY DUTY AUTOMATIC TRANSMISSIONS THROUGHOUT THE WORLD YOU SUGGEST THAT THE REAGAN ADMINISTRATION AND ECONOMISTS OF THE CHICAGO SCHOOL WOULD NOT OPPOSE A TRANSACTION RESULTING IN A 90 MARKET SHARE INSTEAD ALLOWING THE MARKET TO SEEK ITS OWN STRUCTURAL REMEDY TO THE CONTRARY WE BELIEVE THAT MOST ECONOMISTS CHICAGO SCHOOL OR OTHERWISE WOULD SEE THAT INTERVENTION WAS NECESSARY TO PREVENT INCREASED CONCENTRATION IN A MARKET WITH SIGNIFICANT ENTRY BARRIERS INDEED UNDER THE MERGER GUIDELINES PROMULGATED BY THE REAGAN ADMINISTRATION AND AMENDED BY THE BUSH ADMINISTRATION AND WHICH REMAINS IN EFFECT UNDER THIS ADMINISTRATION SUCH A MERGER FALLS INTO THE LIKELY TO CHALLENGE CATEGORY WE WILL CONTINUE TO ENFORCE THE CLAYTON ACT AND APPLICABLE PRECEDENTS TO PREVENT MERGERS THAT ARE LIKELY TO LESSEN COMPETITION 9312130074 931213 ENVIRONMENT SEC RULE FORCES MORE DISCLOSURE BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL IN ITS ANNUAL REPORT LAST YEAR ROCKWELL INTERNATIONAL CORP SAID IT WAS INVOLVED IN A NUMBER OF REMEDIAL ACTIONS TO CLEAN UP HAZARDOUS WASTE BUT IN THE REPORT THAT IS DUE SHORTLY THERE WILL BE MUCH MUCH MORE ABOUT ROCKWELL'S ENVIRONMENTAL LIABILITIES WHICH SPREAD OVER 34 SITES TOTAL 130 MILLION WHY IS ROCKWELL NOW TELLING ALL BECAUSE LAST JUNE THE SECURITIES AND EXCHANGE COMMISSION ISSUED A STAFF ACCOUNTING BULLETIN WHICH HAS THE FORCE OF THE MOST STRINGENT ACCOUNTING RULES IT REQUIRES COMPANIES TO DISCLOSE CONSIDERABLY MORE THAN THEY WERE INCLINED TO ABOUT THEIR CURRENT AND POTENTIAL ENVIRONMENTAL LIABILITIES THE SEC PUT US THROUGH THE WRINGER ABOUT OUR LACK OF DISCLOSURE SO WE'RE GOING TO TELL A LOT MORE THIS YEAR SAYS LAWRENCE KOMATZ VICE PRESIDENT AND CONTROLLER FAILURE TO COMPLY WITH THE SEC'S NEW REQUIREMENT CAN RESULT IN FINES AND OTHER PENALTIES THUS ACCOUNTANTS SAY THE PRESSURE ON COMPANIES TO COMPLY IS GATHERING MOMENTUM RESULT INVESTORS WILL BE INUNDATED BY ENVIRONMENTALLIABILITY DATA NEXT YEAR WHEN 1993 ANNUAL REPORTS ARE ISSUED INDEED SOME FINANCIAL ANALYSTS WARN THAT COMPANIES WITH BIG LIABILITIES MAY SEE THEIR STOCK PRICES DECLINE BECAUSE OF THE BAD NEWS ABOUT CLEANUP COSTS IT WILL BE A PAINFUL PROCESS FOR MANY COMPANIES TO MAKE THESE DISCLOSURES WHICH IN SOME INSTANCES AMOUNT TO HUNDREDS OF MILLIONS OF DOLLARS SAYS JOHN TWELE AN INVESTMENT ANALYST AT AMERICAN EXPRESS CO'S IDS FINANCIAL SERVICES INC UNIT IN MINNEAPOLIS SOME DISCLOSURES MAY CAUSE INVESTORS TO SELL THEIR STOCK IN SOME OF THE BIGGEST AND MOST ADMIRED COMPANIES IN THE CHEMICAL AND MANUFACTURING INDUSTRIES HE ADDS INADEQUATE DISCLOSURE IS RAMPANT STUDIES SUGGEST PRICE WATERHOUSE WHICH CONDUCTED A RECENT SURVEY FOUND THAT 62 OF 523 COMPANIES SURVEYED SAID THEY HAVE KNOWN ENVIRONMENTAL EXPOSURES THAT HAVEN'T BEEN RECORDED IN THEIR FINANCIAL STATEMENTS MEANWHILE EXPERTS WARN THAT COMPANIES THAT THINK INSURANCE COVERAGE WILL TAKE CARE OF THEIR LIABILITIES WILL ENCOUNTER INCREASING RESISTANCE FROM INSURERS WORRIED ABOUT THEIR OWN FINANCIAL HEALTH ACCORDING TO BEST'S REVIEW AN INSURANCECOMPANY RATING PUBLICATION THE INSURANCE INDUSTRY IS CLEARLY UNDERRESERVED IF CALLED UPON TO FUND CURRENT ENVIRONMENTAL CLEANUP ESTIMATES WHILE THE SEC WON'T SAY WHICH COMPANIES IT HAS PRESSURED FOR GREATER DISCLOSURE OF ENVIRONMENTAL LIABILITIES ACCOUNTANTS SAY THE LIST INCLUDES ALUMINUM CO OF AMERICA CHEMICAL PRODUCERS SUCH AS DUPONT CO AND UNION CARBIDE CORP AND A VARIETY OF PETROLEUM AND PHARMACEUTICAL MANUFACTURERS WITH WASTE PROBLEMS AT THEIR PRODUCTION SITES OFFICIALS AT DUPONT AND ALCOA CONCEDE THAT THEY HAVE HAD TO RESPOND TO QUESTIONS FROM THE SEC BUT THEY INSIST THAT THEIR 1993 ENVIRONMENTALLIABILITY DISCLOSURES WON'T INCREASE MUCH FROM 1992 JOHN WULFF VICE PRESIDENT AND CONTROLLER OF UNION CARBIDE CALLED A REVIEW BY THE SEC OF A RECENT STOCK REGISTRATION A PAIN IN THE NECK HE SAYS THE COMPANY WILL ADD SOME SENTENCES ABOUT ENVIRONMENTAL LIABILITIES AND HOW TO ACCOUNT FOR THEM IN ITS NEXT ANNUAL REPORT INCREASED DISCLOSURE REQUIREMENTS WILL PARTICULARLY AFFECT COMPANIES THAT DON'T DISCLOSE THE EXTENT OF ENVIRONMENTAL LIABILITIES BECAUSE THEY THINK THEY AREN'T MATERIAL SAYS EDWARD TROTT A PARTNER AT KPMG PEAT MARWICK AND CHAIRMAN OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' ENVIRONMENTAL TASK FORCE UNDER CURRENT ACCOUNTING RULES COMPANIES AREN'T REQUIRED TO DISCLOSE LIABILITIES OF LESS THAN 5 OF EITHER THEIR PROFITS OR ASSETS LIABILITIES EXCEEDING THESE AMOUNTS ARE CONSIDERED MATERIAL ACCOUNTANTS SAY BUT CORPORATE FINANCIAL EXECUTIVES AND ACCOUNTANTS SAY THAT UNDER THE NEW SEC RULE COMPANIES WILL HAVE TO DISCLOSE SOME ENVIRONMENTAL LIABILITIES EVEN IF THEY FALL BELOW THE 5 THRESHOLD STARTING NEXT YEAR THE RULE WILL ALSO PREVENT COMPANIES FROM USING RECOVERIES FROM INSURANCE TO OFFSET ENVIRONMENTAL LIABILITIES AND THUS AVOID DISCLOSING THEM TO SHAREHOLDERS AND IT WILL GENERALLY STOP COMPANIES FROM DISCOUNTING THE LIABILITY TO A SMALLER AMOUNT THIS DISCOUNTING IS ACHIEVED BY FIGURING HOW MUCH MONEY TODAY INVESTED TO YIELD A PREDICTED AMOUNT WOULD BE NEEDED TO PAY A CONSIDERABLY BIGGER ENVIRONMENTAL OBLIGATION IN THE FUTURE RICHARD Y ROBERTS AN SEC COMMISSIONER RECENTLY TOLD A MEETING OF FINANCIAL EXECUTIVES IN NEW YORK THAT SOME COMPANIES WILL BE DRAWN AND QUARTERED BY THE SEC'S ENFORCEMENT DIVISION FOR INCONSISTENCIES AND LACK OF DISCLOSURE ABOUT ENVIRONMENTAL LIABILITIES IN THEIR SEC FILINGS FOR LACK OF DISCLOSURE THE SEC CAN STOP A COMPANY'S STOCK REGISTRATIONS ASK THE COURTS TO FORCE THE COMPANY TO PROVIDE MORE ENVIRONMENTALLIABILITY DATA AND FINE THE COMPANY UP TO 500000 FOR EACH VIOLATION 9312130073 931213 INTERNATIONAL BRIEF MACMILLAN INC LEHMAN BROTHERS AND BANKS WIN BERLITZ COURT RULING A BRITISH COURT RULED THAT LEHMAN BROTHERS INC AND TWO EUROPEAN BANKS DON'T HAVE TO RETURN ABOUT 140 MILLION IN PROCEEDS OF DISPUTED SHARES IN BERLITZ INTERNATIONAL INC TO THE ESTATE OF THE LATE ROBERT MAXWELL THE NEARLY TWO MILLION SHARES IN BERLITZ THE LANGUAGE SCHOOL WERE ORIGINALLY PART OF A 1989 STOCKLENDING ARRANGEMENT BETWEEN LEHMAN AND BISHOP'S GATE INVESTMENTS A FIRM OWNED BY MAXWELL BERLITZ WAS THEN OWNED BY MAXWELL'S MACMILLAN INC ACCOUNTANTS ADMINISTERING THE MAXWELL ESTATE HAD ALLEGED THE SHARES WERE INAPPROPRIATELY TRANSFERRED TO LEHMAN BROTHERS CREDIT SUISSE AND SWISS VOLKSBANK THEY SOUGHT RETURN OF THE PROCEEDS TO THE MAXWELL ESTATE IN A NEWS RELEASE LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO SAID OUR BELIEF THAT WE ACTED ENTIRELY PROPERLY IN OUR DEALINGS WITH THE MAXWELL GROUP HAS BEEN FULLY JUSTIFIED 9312130072 931213 BUSINESS BRIEF ABB ASEA BROWN BOVERI LTD UNIT WINS TWO CONTRACTS VALUED AT ABOUT 52 MILLION ABB INC A UNIT OF SWISSBASED ABB ASEA BROWN BOVERI LTD SAID IT WON TWO CONTRACTS VALUED AT ABOUT 52 MILLION TO PROVIDE LOCOMOTIVES AND BUILD A CONVERTER STATION UNDER ONE OF THE CONTRACTS WORTH ABOUT 25 MILLION THE STAMFORD CONN COMPANY'S ABB TRACTION INC UNIT WILL PROVIDE FIVE HIGHSPEED LOCOMOTIVES TO NEW JERSEY TRANSIT CORP THE UNIT WILL ALSO DESIGN AND BUILD A CONVERTER STATION FOR AMTRAK THE NATIONAL PASSENGER RAIL COMPANY IN A CONTRACT VALUED AT ABOUT 27 MILLION THE FACILITY WILL CONVERT ELECTRICAL POWER FOR USE BY AMTRAK'S ELECTRIC TRAINS AND WILL ALLOW NEW JERSEY TRANSIT TO MEET POWER NEEDS CREATED BY INCREASED TRAFFIC DEMAND IN THE NEW YORK/NEW JERSEY METROPOLITAN AREA 9312130071 931213 HEARD ON THE STREET AVON TURNS SILENT ON 4THQUARTER FIGURES PROMPTING FEARS THEY WON'T RING ANY BELLS BY SUEIN HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AVON PRODUCTS MAY BE BANGING ON EVERYBODY ELSE'S DOOR BUT THE FIRM HAS STOPPED CALLING ON WALL STREET AT A TIME WHEN THE CRITICAL HOLIDAY SEASON IS REACHING ITS PEAK THE DIRECT SELLER OF COSMETICS AND HOUSEHOLD ITEMS HAS SUDDENLY TURNED SILENT REFUSING TO REAFFIRM OFTREPEATED PROJECTIONS THAT FOURTHQUARTER SALES AND EARNINGS WOULD SURPASS LAST YEAR'S RESULTS FORMER EXECUTIVES FAMILIAR WITH THE SITUATION SAY AVON'S FOURTH QUARTER WHICH TYPICALLY GENERATES ABOUT 40 OF THE YEAR'S PROFIT IS LOOKING UNUSUALLY WEAK PARTICULARLY IN THE LACKLUSTER US MARKET THE NEW YORKBASED CONCERN HASN'T ALWAYS BEEN SO RELUCTANT TO TALK ABOUT ITS EARNINGS BACK IN MAY AVON'S CHIEF EXECUTIVE OFFICER JAMES PRESTON PREDICTED ANOTHER GOOD YEAR OF 10 TO 12 INCREASES IN PROFIT FROM CONTINUING OPERATIONS BUT FOR THIS YEAR'S FIRST NINE MONTHS AVON'S PROFIT FROM CONTINUING OPERATIONS ROSE ONLY 6 TO 1442 MILLION EXCLUDING A RESTRUCTURING CHARGE TAKEN IN 1992 THE MOST RECENT QUARTER WAS ESPECIALLY POOR EXCLUDING THE GAIN ON THE SALE OF A NONOPERATING ASSET AVON'S THIRDQUARTER EARNINGS FELL 12 TO 66 CENTS A SHARE NONTHELESS MR PRESTON PROJECTED POSITIVE FOURTHQUARTER SALES AND EARNINGS GROWTH ON SEPT 2 AND REITERATED IT TO ANALYSTS ON OCT 18 AND NOV 4 LAST YEAR AVON EARNED 144 A SHARE IN THE FOURTH QUARTER UP 12 FROM 1991 NOW HOWEVER COMPANY OFFICIALS INSIST IT'S TOO EARLY TO TELL WHAT THE CURRENT QUARTER WILL LOOK LIKE THERE'S NOTHING DEFINITIVE TO SAY ON THE FOURTHQUARTER RESULTS SAYS AN AVON SPOKESMAN ADDING THAT THE EARLIER COMMENTS WERE BASED ON INFORMATION WE HAD AT THAT TIME BUT FORMER AVON EXECUTIVES BELIEVE THE COMPANY HAS A PRETTY GOOD IDEA OF HOW FULL ITS CHRISTMAS STOCKING WILL BE WHILE MUCH OF AVON'S HOLIDAY BUSINESS DOESN'T OCCUR UNTIL THE VERY END OF THE QUARTER THEY NOTE THAT AVON USES AN EARLYTREND FORECASTING SYSTEM IN WHICH AVON REPRESENTATIVES IN CERTAIN MARKETS GET A HEAD START SELLING FROM AVON'S NEWEST CATALOGS ALLOWING THE COMPANY TO GAUGE WHAT THE QUARTER WILL LOOK LIKE THEY KNOW WHAT THE FOURTH QUARTER IS SAYS DAVID MITCHELL WHO RETIRED AS AVON'S CHIEF EXECUTIVE IN 1983 NO QUESTION ABOUT IT FOR THE PAST SEVERAL YEARS WALL STREET HAS CAST A KIND EYE TOWARD AVON AND ITS EFFORTS TO CUT COSTS AND CLEAN UP ITS BALANCE SHEET AVON'S STOCK WHICH JUMPED TO A CALENDARYEAR HIGH OF 49 IN 1991 WHILE THE COMPANY WAS REBUFFING AN UNFRIENDLY TAKEOVER ATTEMPT HAS SINCE CONTINUED TO MARCH UPWARDS PEAKING AT 64 3/8 EARLIER THIS YEAR WALL STREET'S LOVE AFFAIR WITH AVON STARTED TO TURN SOUR IN EARLY SEPTEMBER WHEN AVON REVEALED THAT ITS THIRD QUARTER WOULD FALL SHORT OF EXPECTATIONS AVON'S STOCK HAS SINCE SLUMPED CLOSING FRIDAY AT 51 1/4 THE THIRDQUARTER RESULT WAS SOMEWHAT MYSTIFYING SAYS DIANA TEMPLE OF SALOMON BROTHERS USUALLY THEIR BUSINESS PERKS UP WHEN CONSUMER CONFIDENCE IS BETTER AVON'S RECENT SILENCE HAS ANALYSTS REACHING FOR THE ALKASELTZER MOST REMAIN CAUTIOUS ON AVON'S STOCK EVEN THOUGH IT HAS SPENT THE PAST FEW MONTHS AT LOWS NOT SEEN SINCE THE BEGINNING OF THE YEAR I'M ANTSY SAYS JOSEPH KOZLOFF AN ANALYST AT SMITH BARNEY THEY'VE BEEN FAIRLY GOOD ABOUT GIVING DIRECTION AND THERE ISN'T A GOOD EXPLANATION WHY THEY'RE NOT DOING SO MY GUT SAYS THERE'S SOMETHING WRONG THE CURRENT STOCK PRICE OF 51 1/4 REFLECTS WALL STREET'S RECENT JITTERS BUT ANALYSTS SAY WORSETHANEXPECTED FOURTHQUARTER RESULTS COULD SEND AVON'S STOCK DOWN EVEN FURTHER ANALYSTS' ESTIMATES FOR THE QUARTER ARE IN THE 150 RANGE WHILE THE COMPANY'S SILENCE MIGHT SUGGEST THAT EARNINGS ESTIMATES SHOULD BE LOWERED ANALYSTS SAY THEY HAVE NO BASIS FOR REVISING THEIR ESTIMATES THE MAJORITY OF AVON'S SALES ARE DONE THROUGH ITS REPRESENTATIVES RATHER THAN THROUGH RETAIL OUTLETS SO THERE'S NO WAY FOR ANALYSTS TO INDEPENDENTLY DETERMINE THE COMPANY'S SALES AND CHANGE THEIR PROJECTIONS SMITH BARNEY'S MR KOZLOFF FOR INSTANCE HASN'T CHANGED HIS EARNINGS ESTIMATE OF 155 FOR THE FOURTH QUARTER BUT HE ISN'T SHOWING A LOT OF CONFIDENCE IN HIS NUMBERS WHO THE HELL KNOWS HE SAYS NO MORE BIG BLUES FIDELITY INVESTMENTS IS LOADING UP ON IBM STOCK THE BOSTON MUTUALFUND CONCERN SAYS THAT SEVERAL FIDELITY FUNDS ARE BUYING SHARES OF THE STRUGGLING COMPUTER COMPANY THE PURCHASES WERE REPORTED BY NEWSLETTER FIDELITY INSIGHT NEAL MILLER MANAGER OF FIDELITY NEW MILLENNIUM FUND HAS MADE INTERNATIONAL BUSINESS MACHINES HIS SECONDLARGEST POSITION BECAUSE HE EXPECTS A POSITIVE SURPRISE IN EARNINGS IBM'S MAINFRAME SALES PLUNGED 20 IN THE FIRST NINE MONTHS OF 1993 BUT HE THINKS THE PLUNGE IS SLOWING MOREOVER MR MILLER SAYS THERE ARE SIGNS OF A CULTURAL REVOLUTION AT THE ONCESTAID IBM THEY'RE WEARING OPEN COLLARS AND SPORTS COATS HE NOTES 9312130070 931213 INTERNATIONAL BRIEF GOTA BANK TWO SWEDISH BANKS CLEARED TO MERGE THEIR OPERATIONS TWO SWEDISH STATEOWNED BANKING GROUPS NORDBANKEN AND GOTA BANK RECEIVED A GOVERNMENT GOAHEAD TO MERGE THE ANNOUNCEMENT HAD BEEN WIDELY EXPECTED AS ALL PRIVATE BANKING GROUPS HAD WITHDRAWN THEIR BIDS FOR GOTA BANK UNDER THE BAILOUT PLAN 38 BILLION KRONOR 457 BILLION IN SOUR LOANS WILL BE TRANSFERRED TO A SEPARATELY CAPITALIZED BAD BANK AND GOTA'S REMAINING HEALTHY OPERATIONS SOLD TO ANOTHER SWEDISH STATEOWNED BANK NORDBANKEN WHILE NORDBANKEN'S TAKEOVER HAD BEEN EXPECTED THE NET COST OF GOTA'S OVERHAUL 269 BILLION KRONOR RAISED EYEBROWS UNDER THE COMPLEX RESCUE PLAN THE GOVERNMENT WILL FIRST INJECT 20 BILLION KRONOR INTO GOTA FINALLY UNDER A TEMPORARY RECAPITALIZATION SCHEME THE STATE WILL INJECT 31 BILLION KRONOR IN SHAREHOLDERS EQUITY INTO THE OVERHAULED HEALTHY GOTA BANK LEAVING IT IN COMPLIANCE WITH INTERNATIONAL CAPITAL ADEQUACY STANDARDS WITH A 9 CAPITAL RATIO THE GOVERNMENT WILL RECOUP THAT 31 BILLION KRONOR EQUITY INJECTION AS SOON AS NORDBANKEN'S PURCHASE OF GOTA IS FINALIZED 9312130069 931213 INTERNATIONAL BRIEF ILVA SPA CUTBACKS IN STEEL PRODUCTION ARE SET WITH EC MINISTERS AFTER MONTHS OF NEGOTIATION EUROPEAN COMMUNITY INDUSTRY MINISTERS AGREED ON A RESTRUCTURING PLAN FOR ITALY'S STATEOWNED STEEL GROUP ILVA SPA THE PLAN IS PART OF AN EC EFFORT TO REDUCE STEEL CAPACITY AND BOLSTER PRICES ACCORDING TO THE AGREEMENT REACHED FRIDAY ITALY WILL RECEIVE 48 BILLION ECU 543 BILLION TO HELP PAY FOR A REDUCTION OF TWO MILLION METRIC TONS IN HOTROLLED PRODUCTION CAPACITY IN THE EC AS A WHOLE A REDUCTION OF 25 MILLION METRIC TONS IS EXPECTED A METRIC TON IS 220462 POUNDS IN ADDITION 500000 ECU 565450 OF THE 48 BILLION ECU WILL BE TREATED AS A TAX CREDIT RATHER THAN A SUBSIDY APPROVAL OF THE PLAN IS EXPECTED AT A DEC 17 MEETING OF EC INDUSTRY MINISTERS ITALY'S INDUSTRY MINISTER PAOLO SAVONA SAID THE AGREEMENT WILL LEAVE ITALY WITH SOME ROOM FOR MANEUVERING SINCE A THIRD FURNACE AT THE TARANTO PLANT WILL REMAIN OPEN ALTHOUGH TWO OF TARANTO'S 11 FURNACES WILL BE SHUT DOWN TO ACCOUNT FOR 12 MILLION METRIC TONS OF CUTS 9312130068 931213 BUSINESS BRIEF LITTON INDUSTRIES' PLANNED SPINOFF CITED IN LOWER S&P RATING BEVERLY HILLS CALIF STANDARD & POOR'S CORP SAID IT LOWERED RATINGS ON LITTON INDUSTRIES INC DEBT VALUED AT ABOUT 430 MILLION THE MOVE WAS BASED ON THE PLANNED YEAREND SPINOFF OF LITTON'S COMMERCIAL OPERATIONS INTO WESTERN ATLAS INC IN A TAXFREE TRANSACTION THE RATING AGENCY SAID THE SPINOFF WILL REDUCE THE BUSINESS DIVERSITY OF LITTON WHICH WILL REMAIN IN DEFENSERELATED MARKETS S&P LOWERED ITS RATING ON SENIOR DEBT TO TRIPLEBPLUS FROM SINGLEAMINUS AND ITS RATING ON SUBORDINATED DEBT WAS DROPPED TO TRIPLEB FROM TRIPLEBPLUS THE RATING ON PREFERRED STOCK WAS LOWERED TO TRIPLEBPLUS FROM SINGLEAMINUS WITH THE RATING ON MIXED SECURITIES BEING LOWERED TO TRIPLEBPLUS/TRIPLEB FROM SINGLEAMINUS/TRIPLEBPLUS S&P AFFIRMED ITS A2 RATING ON LITTON'S COMMERCIAL PAPER LITTON WILL REMAIN IN MILITARYPRODUCTS LINES SUCH AS SHIP BUILDING AND ELECTRONICS WESTERN ATLAS WILL OPERATE BUSINESSES SUCH AS OILFIELD SERVICES AND INDUSTRIAL AUTOMATION 9312130067 931213 REVIEW & OUTLOOK EDITORIAL ASIDES WALMART'S HOT LOCATION ONE OF THE OFFTHEMARK NOTIONS EMANATING FROM ROSS PEROT DURING THE NAFTA DEBATE WAS THAT US GOODS ARE BROUGHT INTO MEXICO JUST LONG ENOUGH TO HAVE SOME LABOR ADDED AND ARE THEN SHIPPED RIGHT BACK TO THE STATES WE NOW HAVE SOME REALWORLD EXPERIENCE ON THIS MATTER ON NOV 30 WALMART OPENED AN OUTLET IN MONTERREY MEXICO AND WAS FORCED TO CLOSE THE DOORS OF ITS 208000SQUAREFOOT FACILITY FOR TWO HOURS BECAUSE OF AN OVERFLOW OF MEXICAN SHOPPERS NEVER BEFORE HAD WALMART HAD TO CLOSE BECAUSE OF THE DANGERS OF TOO MANY SHOPPERS MAYBE SOON MR PEROT HIMSELF WILL BE TAPPING INTO THIS LUCRATIVE RETAIL MARKET 9312130066 931213 POLITICS & POLICY FROM FAST TRACK' TO FRENCH FILMS MAKING SENSE OF WORLD TRADE TALKS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WITH A DEADLINE FOR WORLD TRADE TALKS SET FOR MIDNIGHT EST WEDNESDAY HERE ARE ANSWERS TO SOME QUESTIONS ABOUT THE GATT NEGOTIATIONS WHAT IS GATT GATT STANDS FOR THE GENERAL AGREEMENT ON TARIFFS AND TRADE AN ORGANIZATION THAT WAS SET UP IN GENEVA IN 1947 TO DEVISE RULES FOR INTERNATIONAL TRADE EVEN TRADE EXPERTS FIND GATT A BAFFLING INSTITUTION IT WORKS BY CONSENSUS AND OFTEN TAKES YEARS TO WORK OUT TRADE DISPUTESAND DECADES TO WORK OUT TARIFF CUTS NEVERTHELESS IT HAS HAD GREAT SUCCESS IT HAS SPONSORED SEVEN ROUNDS OF TRADE TALKS IN WHICH TARIFFS HAVE BEEN CUT TO AN AVERAGE OF 47 IN INDUSTRIALIZED NATIONS FROM 40 JUST AFTER WORLD WAR II WORLD TRADE HAS BOOMED GATT NOW IS OVERSEEING WIDERANGING TRADE NEGOTIATIONS CALLED THE URUGUAY ROUND THE TALKS WERE LAUNCHED IN PUNTA DEL ESTE URUGUAY IN SEPTEMBER 1986 PLANNERS ENVISIONED A ROUND THAT WOULD NOT ONLY CUT TARIFFS BUT ALSO REDUCE AGRICULTURAL AND TEXTILE SUBSIDIES OPEN MARKETS TO FINANCIALSERVICE AND COMPUTER COMPANIES AND EXTEND PATENT PROTECTION GLOBALLY THE ROUND WAS SO AMBITIOUS THAT IT IMMEDIATELY STALLED BECAUSE OF OBJECTIONS FROM PROTECTIONIST LOBBIES EFFORTS TO FINISH A GATT PACT HAVE FAILED IN EACH OF THE PAST THREE YEARS BUT THIS TIME NEGOTIATORS THINK THEY CAN CLOSE THE DEAL WHAT'S IN IT FOR THE US TARIFFS SHOULD COME TUMBLING DOWN IN INDUSTRIES AS DIVERSE AS MEDICAL EQUIPMENT SCIENTIFIC INSTRUMENTS PHARMACEUTICALS WOOD PAPER ALUMINUM CHEMICALS AND CONSTRUCTION EQUIPMENT AMONG OTHERS THAT MEANS A HOST OF US COMPANIES SHOULD BE ABLE TO EITHER SELL THEIR GOODS FOR LESS IN FOREIGN MARKETS OR KEEP MORE IN PROFIT EITHER WAY THAT SHOULD HELP EXPORTERS AND INCREASE JOBS WHAT'S THE DOWNSIDE THE US ALSO WOULD GIVE UP SOME PROTECTIONS FOR ITS OLDER INDUSTRIES JOBS IN THE TEXTILE AND APPAREL INDUSTRIES SHOULD CONTINUE THEIR STEADY MOVEMENT OFFSHORE IN ADDITION SUCH HIGHLY PROTECTED FARM CROPS AS SUGAR DAIRY GOODS AND PEANUTS WILL FACE STIFFER OVERSEAS COMPETITION PROBABLY FORCING SOME SMALL FAMILY FARMS TO CLOSE OF COURSE THE INCREASED COMPETITION SHOULD HELP RESTRAIN CONSUMER PRICES IN THESE AREAS THIS SOUNDS LIKE NAFTA IS GATT SIMILAR THE NORTH AMERICAN FREE TRADE AGREEMENT ELIMINATES TARIFFS AND REDUCES TRADE BARRIERS BETWEEN THREE COUNTRIES THE US MEXICO AND CANADA THE GATT DEAL INVOLVES 115 NATIONS JUST ABOUT THE ENTIRE WORLD ASIDE FROM CHINA AND THE FORMER COMMUNIST COUNTRIES BUT BECAUSE SO MANY NATIONS ARE INVOLVED IT'S MUCH HARDER TO REACH AN AGREEMENT IN PARTICULAR COUNTRIES WORRY ABOUT THE FREE RIDER PROBLEM NAMELY THAT SOME COUNTRIES WILL TAKE ADVANTAGE OF THOSE REDUCING TRADE BARRIERS IF THE US ELIMINATES ITS TARIFFS ON ELECTRONICS FOR INSTANCE WITHOUT GETTING EUROPE JAPAN AND KOREA AND OTHERS TO DO THE SAME FOREIGN COMPETITORS WOULD BE FREE TO TRY PUMPING UP EXPORTS TO THE US FROM A HOME BASE PROTECTED BY HIGH TARIFFS HOW BIG A DEAL IS GATT ECONOMICALLY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ESTIMATES THAT A BROAD DEAL IN GENEVA COULD ADD 270 BILLION ANNUALLY AN AMOUNT ROUGHLY EQUAL TO WHAT THE PENTAGON SPENDS EACH YEAR TO THE 30 TRILLION WORLD ECONOMY BY THE YEAR 2002 ECONOMISTS POINT OUT THAT'S ONLY AN ESTIMATE BUT IN ANY EVENT GATT IS A BIG DEAL IF NOTHING ELSE SHOWING THAT THE WORLD'S BIGGEST EXPORTING COUNTRIES CAN AGREE ON NEW RULES FOR TRADE SHOULD BUCK UP INVESTORS GLOBALLY ASIDE FROM TARIFF CUTS WHAT OTHER AREAS WOULD BE COVERED BY A TRADE PACT THOSE HAVE BEEN A SOURCE OF CONFLICT AND DISAPPOINTMENT THE US AND FRANCE BATTLED FOR SEVEN YEARS BEFORE FINALLY AGREEING LAST WEEK TO CUT AGRICULTURAL EXPORT SUBSIDIES BUT THAT DEAL WHICH WOULD CUT SUBSIDIES 21 OVER SIX YEARS WOULDN'T DO MUCH FOR SUCH COUNTRIES AS NEW ZEALAND AUSTRALIA AND ARGENTINA WHICH HAD BEEN COUNTING ON BIGGER CUTS SO THEY COULD INCREASE THEIR FARM EXPORTS PARTICULARLY TO EUROPE CONCERNING PATENTS GATT ISN'T MATCHING EXPECTATIONS EITHER A DRAFT TRADE AGREEMENT WOULD REQUIRE GATT NATIONS TO PROVIDE 20YEAR PATENT PROTECTION JUST AS MULTINATIONAL COMPANIES WANTED BUT THE PHARMACEUTICAL INDUSTRY IS UNHAPPY BECAUSE ANOTHER PROVISION OF THE ACCORD WOULD GIVE SUCH BIG DEVELOPING COUNTRIES AS INDIA 10 YEARS BEFORE THEY HAVE TO OFFER THE PROTECTION INDIA SAYS ITS DRUG INDUSTRY NEEDS TIME TO ADAPT TO THE NEW REGIME US DRUG COMPANIES SAY THE AGREEMENT WOULD LEGALIZE THEFT OF THEIR PATENTS FOR ANOTHER DECADE WHAT'S HOLDING UP THE PACT FOR THE US THE BIGGEST REMAINING ISSUE INVOLVES QUOTAS AND LEVIES ON US FILMS IN EUROPE PRIMARILY IN FRANCE FRANCE CURRENTLY REQUIRES THAT 60 OF EUROPEAN TV PROGRAMMING BE MADE IN EUROPE IT SAYS THE PROTECTION IS VITAL TO PRESERVING ITS CULTURAL IDENTITY HOLLYWOOD RESPONDS THAT THE PEOPLE OF EUROPE SHOULD BE ABLE TO WATCH SUCH MOVIES AS WAYNE'S WORLD ON TELEVISION IF THEY DON'T LIKE IT US FILM MAKERS SAY THEY COULD FLIP CHANNELS BIG MONEY IS INVOLVED THE US FILM AND VIDEO INDUSTRY NOW GARNERS 44 BILLION IN REVENUE FROM SALES IN WESTERN EUROPE CAN CONGRESS MODIFY THIS DEAL NO UNDER NEGOTIATING AUTHORITY GRANTED BY CONGRESS KNOWN SOMEWHAT PARADOXICALLY AS FAST TRACK THE US HAS UNTIL DEC 15 TO CONCLUDE A TRADE PACT DURING THE FOLLOWING FOUR MONTHS THE US AND OTHER COUNTRIES COULD WORK OUT FINAL DETAILS DURING THIS PERIOD US ADVISORY COMMITTEES WOULD ASSESS THE EFFECTS OF THE DEAL ON INDUSTRY PRESIDENT CLINTON THEN WOULD SIGN THE GATT ACCORD BY APRIL 15 SOMETIME AFTER THAT THE PRESIDENT WOULD SUBMIT TO CONGRESS A PACKAGE OF LEGISLATION THAT CHANGES US LAW TO CONFORM TO THE GATT DEAL UNDER FASTTRACK RULES CONGRESS COULD ONLY VOTE YES OR NO ON THE LEGISLATION BUT NOT REVISE IT EXPECT THE PRESIDENT TO WHEEL AND DEAL JUST LIKE HE DID WITH NAFTA TO GET LAWMAKERS TO APPROVE THE PACT WHO OPPOSES GATT MANY CONSUMER ENVIRONMENTAL AND LABOR GROUPS THAT OPPOSED NAFTA WILL OPPOSE GATT SO UNDOUBTEDLY WILL RALPH NADER PAT BUCHANAN ROSS PEROT AND JESSE JACKSON ALL OF THEM WORRY THAT THE TRADE PACT WOULD MAKE GATT POWERFUL ENOUGH TO OVERRULE US LAWS A NUMBER OF INDUSTRIES MAY JOIN IN OPPOSITION DEPENDING ON HOW THE FINAL DEAL COMES OUT SEMICONDUCTOR PHARMACEUTICAL TEXTILE AND STEEL COMPANIES MAY FIGHT THE PACT FEARING THAT GATT WILL BECOME A KIND OF SUPREME COURT OF TRADE FORGET ABOUT THE GIANT SUCKING SOUND OF NAFTA LURING JOBS TO MEXICO WE'LL BE HEARING A LOT INSTEAD ABOUT THE FACELESS BUREAUCRATS OF GATT STRIPPING THE US OF ITS SOVEREIGNTY WHAT HAPPENS IF THE GATT NATIONS DON'T STRIKE A DEAL BY DEC 15 FASTTRACK EXPIRES AND WITH IT SO DO THE NEGOTIATIONS THAT'S BECAUSE NO COUNTRY WOULD NEGOTIATE WITH THE US IF IT KNOWS THAT CONGRESS COULD REWRITE A DEAL THROUGH AMENDMENTS GATT HAS DIED AT LEAST TWICE BEFORE WHEN OTHER FASTTRACK DEADLINES RAN OUT BUT IN A FEAT OF TRADE RESURRECTION PRESIDENT BUSH WON A FASTTRACK RENEWAL IN 1991 AND PRESIDENT CLINTON DID THE SAME EARLIER THIS YEAR THIS TIME THOUGH THE DEADLINE SEEMS FINAL THE CLINTON ADMINISTRATION IS ITCHING TO MOVE ON TO HEALTH CARE WELFARE REFORM AND OTHER PRIORITIES IT DOESN'T WANT TO BATTLE IN CONGRESS OVER FASTTRACK JUST TO FACE YET ANOTHER GATT DEADLINE NEXT YEAR ON WEDNESDAY THE URUGUAY ROUND LIVES OR DIES 9312130065 931213 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED EIGHT NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 17 NEW LISTINGS FOR ITS NATIONAL MARKET SYSTEM INCLUDING 11 INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS INCLUDING TWO INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING ON THE FOLLOWING INITIAL OFFERINGS SUN COMMUNITIES INC FARMINGTON HILLS MICH UNDER SUI A REAL ESTATE INVESTMENT TRUST CAMCO INTERNATIONAL INC HOUSTON CAM A PROVIDER OF EQUIPMENT AND SERVICES FOR THE OIL AND GAS INDUSTRY G&L REALTY CORP BEVERLY HILLS CALIF GLR A REAL ESTATE INVESTMENT TRUST AND COASTCAST CORP RANCHO DOMINGUEZ CALIF PAR A MANUFACTURER OF GOLF CLUBS THE BIG BOARD ALSO ADDED THE FOLLOWING AMERICAN DEPOSITORY SHARES OF GRUPO CASA AUTREY SA DE CV MEXICO CITY ATY A DISTRIBUTOR OF PHARMACEUTICAL AND CONSUMER PRODUCTS MATLACK SYSTEMS INC WILMINGTON DEL MLK A TRUCK CARRIER OF BULK COMMODITIES AND VALSPAR CORP MINNEAPOLIS VAL A MANUFACTURER OF PAINTS AND COATINGS BOTH OF WHICH PREVIOUSLY TRADED ON THE AMEX AND SYRATECH CORP EAST BOSTON MASS SYR A FURNITURE AND GIFTWARE MANUFACTURER FORMERLY TRADING OVER THE COUNTER THE NASDAQ NATIONAL MARKET ADDED THE FOLLOWING INITIAL OFFERINGS POSITRON CORP HOUSTON POSI AND WARRANTS UNDER POSIW A MANUFACTURER OF MEDICAL IMAGING DEVICES US WIRELESS DATA INC COLORADO SPRINGS COLO USWDA A DEVELOPER OF CREDIT CARD AND CHECK VERIFICATION PRODUCTS CELLSTAR CORP CARROLLTON TEXAS CLST A DISTRIBUTOR OF CELLULAR TELEPHONES AND RELATED PRODUCTS FOAMEX INTERNATIONAL INC EAST PROVIDENCE RI FMXI A MAKER OF FOAM PRODUCTS MONTEREY PASTA CO DANVILLE CALIF PSTA A MAKER OF PASTA AND PASTA SAUCES GATEWAY 2000 INC NORTH SIOUX CITY SD GATE A DIRECT MARKETER OF PERSONAL COMPUTERS BROTHERS GOURMET COFFEE INC BOCA RATON FLA BEAN A COFFEE PRODUCTS WHOLESALER AND RETAILER CMC INDUSTRIES INC MEMPHIS TENN CMCI A MAKER OF TELECOMMUNICATIONS SYSTEMS AND EQUIPMENT SHAW GROUP INC BATON ROUGE LA SHAW A MAKER OF PIPING SYSTEMS SYLVAN LEARNING SYSTEMS INC COLUMBIA MD SLVN A PRIVATE PROVIDER OF EDUCATIONAL SYSTEMS VERITAS SOFTWARE CORP SANTA CLARA CALIF VRTS A DEVELOPER OF STORE MANAGEMENT PRODUCTS AND SOFTWARE QUALITY TOOLS THE FOLLOWING COMPANIES MOVED TO THE NASDAQ NATIONAL MARKET FROM THE SMALLCAP MARKET REPUBLIC SECURITY FINANCIAL CORP WEST PALM BEACH FLA RSFCP A SAVINGS BANK HOLDING COMPANY PIEMONTE FOODS INC GREENVILLE SC A DEVELOPER OF PIZZARELATED FOODS AND NETWORK IMAGING CORP RESTON VA IMGX WARRANTS UNDER IMGXW AND PREFERRED STOCK UNDER IMGXP A DEVELOPER OF DOCUMENT IMAGING SYSTEMS AND OPTICAL DISK STORAGE SYSTEMS CHC HELICOPTER CORP ST JOHN'S NEWFOUNDLAND CANADA FLYAF A PROVIDER OF HELICOPTER TRANSPORTATION SERVICES TRADING ON THE TORONTO STOCK EXCHANGE BEGAN TRADING ON THE NASDAQ MARKET SUTTON RESOURCES LTD RICHMOND BRITISH COLUMBIA CANADA STTZF A MINERAL RESOURCE COMPANY TRADING ON THE VANCOUVER STOCK EXCHANGE BEGAN TRADING ON THE NASDAQ MARKET AND CARDINAL BANCSHARES INC LEXINGTON KY CARD A BANK HOLDING COMPANY AND SAVINGS AND LOAN HOLDING COMPANY MOVED TO THE NASDAQ MARKET AFTER TRADING IN THE PINK SHEETS THE AMEX BEGAN TRADING THE INITIAL OFFERINGS OF UTI ENERGY CORP WAYNE PA UTI A CONTRACT DRILLING AND PRESSURE PUMPING COMPANY AND ARM FINANCIAL GROUP INC LOUISVILLE KY PERPETUAL PREFERRED SHARES UNDER ARMPR AN INSURANCE HOLDING COMPANY ALSO AMEX BEGAN TRADING OPTIONS ON SLM INTERNATIONAL INC AND ALLEN GROUP INC AM INTERNATIONAL INC MT PROSPECT ILL AM AND WARRANTS UNDER AMWS A GRAPHIC ARTS SUPPLIER JOINED THE AMEX FOLLOWING REORGANIZATION UNDER CHAPTER 11 THE AMEX LISTED BEAR STEARNS COS PUT AND CALL WARRANTS ON THE AMEXCREATED HONG KONG 30 INDEX HXP WS AND HXCWS RESPECTIVELY AND AMEX BEGAN TRADING IN SALOMON INC'S EQUITYLINKED SECURITIES TIED TO HEWLETTPACKARD CO COMMON STOCK THE PACIFIC STOCK EXCHANGE BEGAN TRADING OPTIONS ON QUANTUM HEALTH RESOURCES INC THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING PUT AND CALL OPTIONS ON COMCAST CORP SPECIAL CLASS A 9312130064 931213 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR RETAIL SALES HAVE BEEN INCREASING STEADILY FOR MORE THAN SIX MONTHS AND MERCHANTS ARE COUNTING ON THE TEMPO PICKING UP DURING THE HOLIDAY SHOPPING SEASON SNOW IN THE MIDWEST AND RAIN IN THE NORTHEAST KEPT SOME SHOPPERS HOME THE WEEKEND AFTER THANKSGIVING THE TRADITIONAL START OF THE SHOPPING SEASON SURVEYS SHOW RETAIL SALES WERE UP ABOUT 5 DURING THAT WEEKEND COMPARED WITH A YEAR EARLIER SEVERAL MERCHANTS HAD HOPED FOR EVEN LARGER GAINS SAID DAVID WYSS ECONOMIST AT DRI MCGRAW HILL BUT THEY HAVEN'T GIVEN UP YET HE ADDED MR WYSS SAID THE EARLY HOLIDAY SHOPPING PROBABLY HELPED BOOST RETAIL SALES BY 04 FOR THE MONTH OF NOVEMBER WHICH WOULD MARK THE EIGHTH MONTHLY INCREASE IN A ROW THE THANKSGIVING WEEKEND WAS A LITTLE BIT SOFT BUT THE NOVEMBER RETAIL SALES NUMBER IS STILL RESPECTABLE AFTER COMING OFF A VERY STRONG OCTOBER HE SAID WITH THE ECONOMY STRENGTHENING AND CONSUMER CONFIDENCE RISING RETAILERS ARE STILL HOPING FOR A SOLID HOLIDAY SHOPPING SEASON MR WYSS SAID A SURVEY OF SHOPPINGCENTER SALES A SEPARATE POLL OF CHAIN STORES AND A REPORT ON CREDITCARD CLEARANCES ALL INDICATE STRONGER RETAIL SALES HE SAID 9312130063 931213 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INVESTORS IN SOUTHWEST CHINA STAGED A TWODAY SITIN TO PROTEST ALLEGED ABUSES IN THE SALE OF NEWLY LISTED STOCKS HIGHLIGHTING PROBLEMS IN FLEDGLING SECURITIES MARKETS ABOUT 1000 PEOPLE IN KUNMING SOUGHT TO HALT DISTRIBUTION OF CERTIFICATES NEEDED TO BUY STOCKS IN TWO FIRMS THEY ACCUSED SELLERS OF BREAKING RULES BY GIVING COMMISSIONS TO ENCOURAGE SALES SELLING CERTIFICATES IN OTHER CITIES AND CONTINUING SALES AFTER A DEADLINE SIMILAR ALLEGATIONS ABOUT SHENZHEN'S EXCHANGE LAST YEAR SPARKED RIOTING BY THOUSANDS OF INVESTORS SEPARATELY CHINA'S CREDIT LOOSENING LED TO A 19 JUMP IN NOVEMBER INDUSTRIAL PRODUCTION FROM A YEAR EARLIER AFTER MONTHLY DROPS FOLLOWING A RECORD 30 INCREASE IN JUNE THE DECLINES HAD RESULTED FROM LENDING CURBS TO CUT INFLATION MEANWHILE CHINA WILL LIMIT IMPORTS OF CAR PARTS BY FOREIGN AUTO MAKERS IN THE COUNTRY TO ENCOURAGE THEM TO RELY ON MORE THAN 4000 DOMESTIC PARTS PRODUCERS BEIJING HOPES TO ELIMINATE MANY OF THOSE LOWVOLUME HIGHCOST ENTERPRISES AND BOLSTER STRONG ONES WITH FOREIGN TECHNOLOGY HONG KONG'S GOVERNOR INTRODUCED STRIPPEDDOWN LEGISLATION TO BROADEN DEMOCRATIC PARTICIPATION IN THE BRITISH COLONY GOV CHRIS PATTEN PUBLISHED THE BILL IN THE GOVERNMENT GAZETTE WHICH CHINA TERMED A MOVE TO THWART SINOBRITISH TALKS ON BROADER REFORMS CHINA MAINTAINS THAT THE PATTEN PLAN WOULD SAFEGUARD BRITISH INTERESTS IN HONG KONG ONCE IT REVERTS TO CHINESE CONTROL IN 1997 THE PROPOSALS FOR MUNICIPAL AND LEGISLATIVE ELECTIONS IN 1994 AND 1995 WOULD LOWER THE VOTING AGE TO 18 FROM 21 ABOLISH APPOINTED SEATS ON LOCAL GOVERNMENT BODIES AND ADJUST REPRESENTATION IN THE TERRITORY'S LEGISLATURE TOURISM ON ST KITTS HAS BEEN SOCKED BY POLITICAL UNREST WHICH PROMPTED CRUISE LINERS TO BYPASS THE CARIBBEAN ISLAND AND VACATIONERS TO CANCEL HUNDREDS OF HOTEL BOOKINGS A STATE OF EMERGENCY DECLARED DEC 2 COST THE TOURISM INDUSTRY ON THE TWOISLAND NATION OF ST KITTS AND NEVIS MORE THAN 500000 IN THE FIRST WEEK THE DECREE COULD BE LIFTED BY CHRISTMAS MEANWHILE THE GOVERNMENT SAID A BREAKDOWN OF LAW AND ORDER MAY REQUIRE HIRING MORE POLICE PROTESTS ERUPTED FROM GROWING POLITICAL OPPOSITION TO NARROWLY REELECTED INCUMBENTS FORMING A NEW GOVERNMENT ONE OF ONLY 12 BIBLES PRINTED ON PARCHMENT BY JOHANN GUTENBERG IN THE 15TH CENTURY WAS DISCOVERED IN A LOCKED ROOM IN RUSSIA'S STATE LIBRARY THE IZVESTIA NEWSPAPER SAID THE BIBLE OWNED BY A MUSEUM IN LEIPZIG GERMANY WAS AMONG TREASURES SUCH AS ARTWORKS AND GOLD OBJECTS THAT THE RED ARMY TOOK TO MOSCOW AS WORLD WAR II TROPHIES THE LIBRARY PUT A 4 MILLION VALUE ON ITS WELLPRESERVED EDITION OF THE GUTENBERG BIBLE CONSIDERED THE WORLD'S FIRST PRINTED BOOK SOUTH KOREA UNVEILED PLANS TO SELECT THE NATION'S FIRST PRIVATE MOBILETELEPHONE MAKER THE FEDERATION OF KOREAN INDUSTRIES A BUSINESS ALLIANCE WILL HANDLE FORMATION OF A CONSORTIUM OF COMPANIES WITHIN TWO MONTHS FOR THE PROJECT WITH 20 FOREIGN OWNERSHIP ALLOWED THE GOVERNMENT WILL ALLOW ONE COMPANY TO BUY AS MUCH AS A THIRD OF THE STATERUN MOBILEPHONE MONOPOLY KOREA MOBILE TELECOM CO WHICH WILL BE PRIVATIZED SOON ALLOWING OTHER COMPANIES TO PARTICIPATE A PREVIOUS DECISION TO AWARD THE PROJECT TO AN INTERNATIONAL CONSORTIUM WAS NULLIFIED IN AUGUST 1992 AMID NEPOTISM ALLEGATIONS THE EUROPEAN COMMUNITY'S TRADEMARK OFFICE IN MADRID WILL HAVE FIVE OFFICIAL LANGUAGES ENGLISH FRENCH GERMAN ITALIAN AND SPANISH APPLICATIONS MAY BE FILED IN ANY OF THE NINE EC LANGUAGES BUT APPLICANTS ALSO MUST DESIGNATE ONE OF THE FIVE ON THE OFFICIAL LIST AS A SECOND LANGUAGE THAT MAY BE USED IN CHALLENGING AN APPLICATION THE OFFICE IS TO BE FUNDED BY APPLICATION FEES AND SUCH SELFSUFFICIENCY WOULD BE IMPOSSIBLE IF ALL EC LANGUAGES COULD BE USED IN CONTESTED CASES KAZAKHSTAN'S SUPREME SOVIET OR PARLIAMENT VOTED TO DISBAND AND LET THE PRESIDENT RULE THE OILRICH CENTRAL ASIAN NATION BY DECREE UNTIL MARCH ELECTIONS IT ABOLISHED REGIONAL LEGISLATURES LEAVING POWER TO THE PRESIDENT'S ADMINISTRATORS THE LAWMAKERS WILL CONTINUE TO BE PAID AND RETAIN PRIVILEGES SUCH AS LEGISLATIVE IMMUNITY PENDING THE BALLOTING THEY ALSO ORDERED THE GOVERNMENT OF THE FORMER SOVIET REPUBLIC TO FIND THEM NEW JOBS PARLIAMENT AND MORE THAN 200 LEGISLATURES WERE ELECTED IN SOVIET TIMES THOUGH PARLIAMENT IS WIDELY REGARDED AS A RUBBER STAMP FOR PRESIDENT NURSULTAN NAZARBAYEV HE HAS COMPLAINED IT BLOCKED ECONOMIC REFORM A FOURTH OF THE NEW PARLIAMENT WILL BE PRESIDENTIALLY APPOINTED AUSTRALIA'S POPULATION IN MID1993 INCREASED JUST 1 FROM A YEAR EARLIER TO 176 MILLION THE SLOWEST GROWTH SINCE 1976 ATTRIBUTED TO A CONTINUED DECLINE IN IMMIGRATION THE US STATE DEPARTMENT WARNED AMERICAN CITIZENS TO LEAVE OR AVOID VISITING ALGERIA SAYING FOREIGNERS ARE TARGETS OF TERRORIST VIOLENCE IN THE NORTH AFRICAN COUNTRY 9312130059 931213 OUR AMERICAN THEATER OF BLOOD BY STANLEY CROUCH THE POPPING SOUND OF LEAD KILLING AND WOUNDING ON THE 533 LONG ISLAND TRAIN ECHOES AND RICOCHETS ACROSS OUR CULTURE WE FIND OURSELVES ONCE MORE HAVING TO THINK ABOUT THE LONG TRADITION OF CARNAGE THAT MAKES THREEDIMENSIONAL THE MOST DIRE FANTASIES OF THOSE WHO RESIDE IN OUR SPIRITUAL GARBAGE DUMPS ONE OF THE MOST FAMOUS WAS JOHN WILKES BOOTH WHOSE FRUSTRATIONS AND EMOTIONAL PROBLEMS FOUND SYMBOLIC EXPRESSION THROUGH MURDER HIS WORK DONE ABRAHAM LINCOLN MORTALLY WOUNDED IN THE MEZZANINE BOOTH MADE HIS EXIT AFTER A MELODRAMATIC DAGGERWAVING FLOURISH FROM THE STAGE OF FORD'S THEATER IF ANYTHING BOOTH'S THEATRICALITY SPEAKS DIRECTLY TO OUR TIME WHEN KILLERS WHO LACK THE KIND OF LITERAL AUDIENCES LINCOLN'S ASSASSIN HAD PLAY FOR TELEVISION AND FOR THE PAPERS OUR LONG ISLAND TRAIN KILLER CARRIED NOTES THAT EXPLAINED HOW HE FELT WHICH MEANT THAT IN THE EVENT OF DEATH PLEASE PUT MY WORDS IN THE ASSESSMENT SO IT WAS AS MUCH AS ANYTHING A PERFORMANCE IT WAS A PERFORMANCE THAT FITS IN QUITE WELL WITH THE RELATIONSHIP VIOLENCE AND RUTHLESS DOMINANCE HAVE IN THE WORST OF OUR POLITICS AND OUR POPULAR ENTERTAINMENTS IN BOTH THE HEROVICTIM HOLDS A HIGH POSITION PARTLY BECAUSE OUR COUNTRY WAS BORN IN REBELLION AGAINST AN EXTERNAL ORDER THAT TAXED BUT ACCEPTED NO OBJECTIONS TO POLICY PARTLY BECAUSE THE AMERICAN UNDERDOG HAS A TRADITION OF BITING THROUGH THE LEASH OF CHANGING POLICY THROUGH FRESH ARGUMENT OR THE VIOLENT CREATION OF CRISIS BUT THE MYSTERIOUS MISCALCULATIONS CENTRAL TO LUNACY EITHER IN THE INDIVIDUAL OR IN THE ORGANIZATION BUILT ON TRIGGERHAPPY PARANOIA CAN MISAPPROPRIATE THOSE TRADITIONAL ELEMENTS OF OUR CULTURAL SENSIBILITY BOOTH SAW HIMSELF AS A HEROVICTIM OF LINCOLN AND THE VICTORIOUS UNION ARMY THE KU KLUX KLAN SAW ITSELF A VICTIM OF RECONSTRUCTION PROTECTOR OF WHITE PURITY AND MUCH LATER SUCH A VICTIM OF THE FEDERAL GOVERNMENT AND THE CIVIL RIGHTS MOVEMENT THAT EITHER ITS MEMBERS OR ITS SYMPATHIZERS PERFORMED AN ACT OF REBELLION BY BLOWING UP FOUR LITTLE BLACK GIRLS IN A BIRMINGHAM CHURCH IN 1963 THOSE ROLES WERE APPROPRIATED BY THE LEFT IN THE REVOLUTIONARY THEATER OF THE LATE 1960S AND ARE THE BASIC IDEAS IN OUR MOST POMPOUSLY VIOLENT BLACK VIDEOS NOW SHOW BUSINESS AND IRRATIONAL OR VIOLENT POLITICS HAVE FUSED PLAYING THEMSELVES OUT IN A NUMBER OF CRASS CONTEMPORARY TRENDS MANY OF THEM QUITE PROFITABLE MUCH OF THIS IS TRUE BECAUSE OURS IS A TIME IN WHICH DEBILITATING VULGARITY IS TOO OFTEN MISCONSTRUED AS VITALITY A TWISTED ALLUSION TO THE FACT THAT DEMOCRATIC RICHNESS HAS OFTEN RISEN THROUGH RACIAL RELIGIOUS AND GENDER PREJUDICE AS WELL AS THE BOUNDARIES OF CLASS THIS MEANS THAT DECADENT SOLUTIONS TO BOREDOM OR TO THE LACK OF SERIOUS ENGAGEMENT BEYOND EARNING A LIVING HAVE DRAWN MORE THAN A FEW OF US INTO BECOMING CARNIVORE SPECTATORS WE CONSUME THE REPLACEMENTS FOR EMOTIONAL DEPTH THAT ARRIVE IN OUR BLOODY ACTION FILMS WHERE SHOCK STANDS IN FOR THE STIRRINGS OF EMPATHY WHEN AT A LOSS FOR CHARACTER BLOW SOMEONE'S HEAD OFF CHOP AWAY A LIMB SUBMIT TO THE PEAKS AND VALLEYS OF SADOMASOCHISM RATHER THAN RISE TO THE CHALLENGE OF EXPRESSING THE COMPLEX HUMANITY OUR EPIC CULTURE HAS IN SUCH GREAT STORE IF THAT IS NOT THE CASE THEN CREATE FORUMS IN WHICH PEOPLE'S INTIMATE LIVES BECOME THE EMBARRASSING GRIST FOR THE PARTS THAT THEY PLAY ON OUR TALK SHOWS WHERE WE CAN EASILY SEE THAT PRIVACY IS PERHAPS THE MOST ENDANGERED CONDITION IN OUR CULTURE IN THE POP WORLD CELEBRATING BLACK SCUM CULTURE THE PLAYING OUT OF EVERY STEREOTYPE ABOUT VIOLENCE LAZINESS DRINKING CRIME GAMBLING DRUGS AND AMORAL SEXUALITY PROVIDES AUDIO SAFARIS FOR THE SUBURBS AND INTIMIDATING ROLES FOR THE NICE KIDS WHO WANT TO PRETEND THEY'RE HOMEYS WHICH OFTEN MEANS THAT THEY SO CLOSELY IMITATE THE DRESSING AND TALKING STYLES OF THOSE WHOSE HEARTS ARE SPIRITUAL MUD PUDDLES THAT ONE IS AT A LOSS TO TELL WHERE THE ACTUAL STREET THUG STOPS AND THE COUNTERFEIT ONE BEGINS SO THIS CONFUSION OF THE VULGAR AND THE VITAL HAS LED TO CRUDENESS AND VIOLENCE BECOMING ACCEPTABLE EXPRESSIONS WAYS OF VENTILATING THE EMOTIONS PARTS ONE CAN PRACTICE AT HOME AND PERFORM IN PUBLIC OUR 533 SHOOTIST IS PART OF THAT THEATRICAL CULTURE GUN IN HAND HE WAS READING FOR A PART THAT IS A FACTOR MUCH MORE IMPORTANT THAN RACE OR ALL OF THE OTHER INTELLECTUAL GOULASH BEING SERVED AS AN EXPLANATORY MAIN COURSE RACE IS CHUCKED INTO THE POT BECAUSE OUR SHOOTIST LET IT BE KNOWN THAT HE HATED WHITE PEOPLE BLACK CONSERVATIVES AND ASIANS THE FACT IS THAT THE COMMUTER TRAIN SHOOTIST WAS TAKING ON THE ROLE OF AN AVENGER WHOSE CONCLUSION WAS THAT THOSE WHO COMMIT WRONGS TO HIS PEOPLE ARE SO GENERAL IN THEIR ACTIONS THAT ONE NEEDN'T EVEN LOOK FOR EXACT CULPRITS COLIN FERGUSON COULD HAVE BEEN ANYONE FROM ANY BACKGROUND WHO BELIEVED THAT THE ROLE OF CRUSADING TERMINATOR WAS AN EQUALOPPORTUNITY POSITION THAT WILLINGNESS TO STOP THE LIVES OF STRANGERS ON THE BASIS OF AN ABSTRACT CONCEPTION IS THE PROBLEM THOUGH WE WOULD BE IN MUCH TROUBLE WERE WE TO TRY AND FIGURE OUT HOW WE MIGHT PREVENT THE MAD FROM ACTING OUT THEIR FANTASIES WE CAN HOWEVER RECOGNIZE THAT PEOPLE SUCH AS THIS MAN CANNOT BE EXPLAINED BY DYSFUNCTIONAL FAMILIES OR PREVIOUS RESIDENCE IN THE CARIBBEAN WHERE BLACK PEOPLE FEEL GOOD ABOUT THEMSELVES HE IS NOT WHAT WE SHOULD EXPECT FROM THOSE BLACK PEOPLE WHO LACK A FEELING OF EMPOWERMENT OR WHO HAVE OVERDOSED ON AL SHARPTON AND JESSE JACKSON HE COMES FROM A MENTAL AND EMOTIONAL WORLD IN WHICH FANTASY TAKES ON THE CLOAK OF TERROR WHEN SOMEONE WHO WANTS HIS MOMENT CHOOSES THE SWIFT AND BRUTAL PATH WHERE REAL DEATH SHAPES THE SORT OF PERFORMANCE JOHN WILKES BOOTH WOULD UNDERSTAND QUITE WELL PART OF OUR TRAGEDY IS THAT THE BULLET THAT WENT INTO LINCOLN'S HEAD HAD NO MORE TO DO WITH THE HEROIC CHALLENGES OF OUR DEMOCRACY THAN THE SLUGS THAT MADE THE LONG ISLAND COMMUTER TRAIN A COACH OF BLOOD OR THE BOMB THAT MADE THAT CHURCH IN BIRMINGHAM THE LAST PLACE THOSE YOUNG BLACK GIRLS PRAYED MR CROUCH IS THE AUTHOR OF NOTES OF A HANGING JUDGE ESSAYS AND REVIEWS 19791989 OXFORD 1990 AND A 1993 RECIPIENT OF A MACARTHUR FOUNDATION GRANT 9312130058 931213 MANAGER'S JOURNAL DECK THE STORES WITH EASY CREDIT BY RALPH SHAFFER SOME RETAILER IS GOING TO MAKE A KILLING THIS CHRISTMAS SEASON BUT IT WON'T BE THE ONE WITH THE MOST INDEPTH INVENTORY OR THE ONE WITH THE APPEALING FOLKSY ADS OR THE ONE ALREADY MOVING FAST ON THE POPULARITY OF FLASHY TRENDS IN TOYS OR ELECTRONICS OR SPORTING GOODS AND IT WON'T NECESSARILY BE THE ONE WITH THE BEST PRICES EITHER THE MOST SUCCESSFUL MERCHANT IN THE FOURTH QUARTER WILL BE THE ONE WHO PRIES OPEN HIS CREDIT NICHE A LITTLE WIDER TO ADD TO HIS EXISTING CHRISTMAS SEASON MERCHANDISING STRATEGY THE US BUYING PUBLIC HAS FINALLY DRAGGED ITSELF BOOTSTRAPWISE OUT OF MUCH OF ITS RECESSIONARY DEBT WOES IT HAS LARGELY CLEANED UP ITS DEBT PORTFOLIO AND IS NOW TAKING ON NEW DEBT THAT IT CAN AFFORD THIS PAPER WAS AMONG THE FIRST TO NOTICE THE TREND AS IT REPORTED ON NOV 1 PART OF THE ABILITY OF CONSUMERS TO SPEND MORE IS THAT MANY AMERICANS HAVE GOTTEN THEIR DEBT DOWN TO A MORE MANAGEABLE LEVEL AND ARE FEELING MORE COMFORTABLE ABOUT SPENDING CONSUMER INSTALLMENT DEBT HAS BEEN EXPANDING SINCE THE BEGINNING OF THE YEAR DRAMATIC STATISTICAL CONFIRMATION OF THIS TREND WAS ISSUED LAST WEEK BY THE FEDERAL RESERVE BOARD WHICH REPORTED THAT CONSUMERS IN OCTOBER TOOK ON AN EXTRA 81 BILLION OF NEW INSTALLMENT DEBT THE LARGEST MONTHLY GAIN SINCE 1988 AND ALL INDICATIONS ARE THAT THIS IS NOT IRRESPONSIBLE BORROWING IN FACT ALSO REPORTED LAST WEEK WERE FIGURES THAT SHOWED MORTGAGE DELINQUENCIES AT A 19YEAR LOW FOR THE THIRD QUARTER THIS YEAR THIS IS JUST THE KIND OF RESPONSIBLE CONSUMER SPENDING ON DEBT THAT RETAILERS LOVE OF COURSE MOST STORES TODAY LARGE OR SMALL ALREADY HAVE AN ACTIVE CREDIT POLICY SALES PERSONNEL PUSH IT INSTORE DISPLAYS PROMOTE MONTHLY CREDIT PAYMENTS LOOKALIKE ADS SHOUT ABOUT 0 INTEREST AND DEFERRED PAYMENTS RETAILERS' BUYONCREDIT AGITATION CONTINUES TO ESCALATE SO WHAT'S THE NEW DEAL RETAILERS ALREADY USE ITS CREDIT POLICY TO A FAULT BUT TO A FAULT SAYS IT ALL BECAUSE THE BUYING PUBLIC IS CONFUSED ABOUT JUST HOW CREDIT BUYING WORKS MANY CUSTOMERS WONDER IF THEY ARE GETTING STUNG ON INSTALLMENT FINANCE CHARGES THEY AREN'T CLEAR ON WHAT THE GRACE PERIOD IS IF THE BILLING CYCLE HAS MUCH TO DO WITH WHEN AND HOW MUCH THEY PAY THEY HAVE TROUBLE RECONCILING THEIR PREVIOUS BALANCE WITH THE CURRENT BALANCE AFTER A PAYMENT HAS BEEN MADE IT'S THE FINANCE CHARGE APPLIED TO THE AVERAGE DAILY BALANCE THAT'S MURKY HEY WAIT A MINUTE I HEAR YOU SAY THAT'S JUST THE WAY THE CREDIT BUSINESS WORKS YOU USE IT YOU FOLLOW THE FORMULA YOU PAY FOR IT OK RETAIL CUSTOMERS ARE USED TO USING IT BUT THE REASON A GOOD MANY DON'T UNDERSTAND IT LIES IN THE FINE PRINT THE STUFF ON THE BACK OF BILLING STATEMENTS ON EXPLANATORY STORE SIGNS AT THE BOTTOM OF FULLPAGE ADS AND IN THE INDECIPHERABLE ROLLING CREDITS ON TV ALL THIS PROLIXITY MAKES CUSTOMERS LEERY SO THE SAVVY RETAILER WILL RECOGNIZE THAT CUSTOMERS WHO UNDERSTAND CREDIT TEND TO USE IT MORE AND LOOKING AT THE TREMENDOUS UPTICK IN CREDIT FIGURES HE WILL FIGURE OUT THAT THE NATURAL PLACE TO LOOK FOR ADDED CHRISTMAS SALES IS IN CREDIT HE WILL FORMULATE A STRATEGY FOR TWO GROUPS OF CUSTOMERS 1 THOSE WHO USE HIS COMPANY'S OWN CREDIT ACCOUNTS AND 2 ALL OTHER POTENTIAL CUSTOMERS THE PUBLICITY FOR THE STORE'S CAPTIVE ACCOUNTS WILL INCLUDE A STRONG DIRECTMAIL CAMPAIGNPREVIEW INVITATIONS SPECIAL EARLY AND LATE BUYING HOURS DATED DISCOUNTS AND OTHER BUYNOW INCENTIVES THAT'S NOT NEW BUT SUPERIMPOSED ON ALL THIS WILL BE REASONS TO USE THAT STORE'S SPECIFIC CREDIT TERMS REMEMBER WE NEVER CHARGE YOU A LATE PAYMENT FEE OR REMEMBER OUR FINANCE CHARGES ARE AS LOW AS YOU'LL FIND OR REMEMBER ON OUR DEFERRED PAYMENTS WE NEVER ADD AN INTERIM FINANCE CHARGE IN ADDITION THIS DIRECTMAIL BLITZ WILL BE BACKED UP WITH INSTORE GRAPHICS AND A SPECIAL TRAINING PLAN TO ADVISE PERSONNEL ON HOW TO PUSH THE NEW EASY CREDIT PLAN AND FOR THE OTHER NEW CREDIT PROSPECTS THE PITCH WILL GO SOMETHING LIKE THIS WE KNOW THIS HAS BEEN A TOUGH YEAR FOR MANY OF US SO PERHAPS OUR REVAMPED CREDIT PLAN COULD HELP YOU WITH YOUR CHRISTMAS SEASON BUDGET TAKE A NEW LOOK AT OUR PLAN WE HAVE UNDERSTANDABLE CREDIT TERMS THAT WILL SAVE YOU MONEY THEN THE MATERIAL WILL HIGHLIGHT DETAILS IF YOU PAY WITHIN 30 DAYS WITH A FIVEDAY GRACE PERIOD THERE'S NO FINANCE CHARGE FOR INSTALLMENTS OUR PLAN'S INTEREST IS LOWER THAN MOST AND WE HAVE EXTENDED AND DEFERRED PLANS TO HELP YOU AND MORE EVEN IF YOU PREFER USING ONE OF YOUR OTHER CREDIT CARDSWE'LL HONOR IT THE RETAILER WHO MAKES SURE HIS CREDIT PLAN LEADS THE COMPETITION AND WHO CAN EXPLAIN ITS INTRICACIES TO CUSTOMERS WILL HAVE A STUNNING OPPORTUNITY TO ADD SALES AND PROFITS TO HIS CHRISTMAS SEASON FIGURES THERE WILL BE NOTHING QUITE LIKE RIDING THE NEW CREDIT UPDRAFT MR SHAFFER IS A FORMER CORPORATE EXECUTIVE WRITING FROM SAN FRANCISCO 9312130057 931213 CLOSED END FUNDS CLOSEDEND FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPENENDED FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO NNYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE