MARTIN MARIETTA CORP BETHESDA MD SAID IT FILED A REGISTRATION STATEMENT TO SELL AS MUCH AS 19 OF ITS MARTIN MARIETTA MATERIALS INC AGGREGATES BUSINESS IN A PUBLIC STOCK OFFERING THE AEROSPACE CONCERN SAID IN JANUARY IT WAS CONSIDERING SELLING ALL OR PART OF THE UNIT AS PART OF AN OVERALL RESTRUCTURING AFTER THE SALE MARTIN MARIETTA WILL OWN 83 OF THE COMPANY OR 81 IF THE UNDERWRITER'S OVERALLOTMENT IS EXERCISED THE MANAGING UNDERWRITER WILL BE MORGAN STANLEY & CO 9312090123 931209 USAIR TRAFFIC ROSE IN NOVEMBER ARLINGTON VA USAIR GROUP INC SAID NOVEMBER TRAFFIC HELPED BY THE FLIGHT ATTENDANTS' STRIKE AT RIVAL AMERICAN AIRLINES JUMPED 13 TO 304 BILLION REVENUE PASSENGER MILES FROM 268 BILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE CARRIER SAID THAT ITS LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ALSO CLIMBED SOLIDLY TO 62 FROM 56 NOVEMBER TRAFFIC WAS FAVORABLY IMPACTED BY THE STRIKE AGAINST ANOTHER MAJOR AIRLINE LAST MONTH USAIR NOTED IN A DEMURE REFERENCE TO THE FLIGHT ATTENDANTS' FIVEDAY STRIKE AGAINST AMERICAN THE STRIKE CRIMPED THE AMR CORP UNIT'S ABILITY TO MAINTAIN SCHEDULED SERVICE AND DROVE MANY POTENTIAL AMERICAN CUSTOMERS TO OTHER CARRIERS 9312090122 931209 REVIEW & OUTLOOK EDITORIAL ASIDES IMPOSING ONE'S VIEWS A FOOTNOTE TO THE APPLE FLAP DISCUSSED ABOVE SEE RELATED EDITORIAL REVIEW & OUTLOOK EDITORIAL BITE OF THE APPLE WSJ DEC 9 1993 ONE OF THE POPULAR KNOCKS AGAINST POLITICALLY ACTIVE EVANGELICAL CHRISTIANS IS THAT THEY WOULD IMPOSE THEIR VIEWS ON EVERYONE ELSE WE GUESS WHAT HAPPENED TO THE PEOPLE IN WILLIAMSON COUNTY IS SUPPOSED TO BE SOMETHING DIFFERENT 9312090121 931209 INTERNATIONAL AIR FRANCE PLANS TO CUT WORK FORCE BY 2100 NEXT YEAR BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL AIR FRANCE WILL REDUCE ITS WORK FORCE BY 2100 PEOPLE OR ABOUT 5 NEXT YEAR THROUGH EARLY RETIREMENTS AND NATURAL ATTRITION THE IMPORTANT THING TO KNOW IS IT'S ONLY VOLUNTARY DEPARTURES A SPOKESWOMAN SAID THERE ARE NO FIRINGS IN OCTOBER UNIONS AT STATEOWNED AIR FRANCE STAGED A HIGHPROFILE WEEKLONG STRIKE TO PROTEST PLANS FOR 4000 LAYOFFS AND REDUCED OVERTIME PAY THE GOVERNMENT BACKED DOWN IN THE UGLY CONFRONTATION AGREEING TO SCRAP THE PLAN FOR FIRINGS THENCHAIRMAN BERNARD ATTALI HANDED IN HIS RESIGNATION AMID THE DISPUTE SINCE THEN THE AIRLINE HAS MET EXTENSIVELY WITH UNIONS AND THE NATIONAL FUND FOR EMPLOYMENT A GOVERNMENT AGENCY THAT PROVIDES FUNDING FOR WORKERS TAKING EARLY RETIREMENT THE FNB AS IT IS KNOWN IN FRENCH THIS WEEK AGREED TO MAKE PAYMENTS TO 1100 AIR FRANCE WORKERS TAKING VOLUNTARY EARLY RETIREMENT AND THE AIRLINE EXPECTS AN ADDITIONAL 1000 PEOPLE TO LEAVE DURING THE YEAR AS A RESULT OF NORMAL TURNOVER NONE OF THEM WILL BE REPLACED YESTERDAY'S ANNOUNCEMENT PRECEDES BIGGER NEWS EXPECTED NEXT WEEK ON MONDAY THE NEW AIR FRANCE CHAIRMAN CHRISTIAN BLANC AND HIS MANAGEMENT TEAM ARE EXPECTED TO UNVEIL A SET OF STRATEGIC POINTS GOALS THEY BELIEVE THE AIRLINE MUST ACHIEVE TO RETURN TO PROFITABILITY MANAGEMENT AND THE UNIONS WILL THEN SPEND THE FOLLOWING MONTH DEVISING A SPECIFIC PLAN FOR ACHIEVING THOSE GOALS IT'S A WAY OF WORKING THAT IS A BIT DIFFERENT THE SPOKESWOMAN SAID MANAGEMENT GIVES THE GUIDELINES AND THEN WE ALL WORK TO ACHIEVE THEM THE POINT IS TO MAKE THE UNIONS MORE INVOLVED IN THE DECISIONMAKING PROCESS PRIOR TO THE STRIKE AIR FRANCE WAS EXPECTED TO HAVE A LOSS OF ABOUT 55 BILLION FRENCH FRANCS 939 MILLION THIS YEAR BUT FRENCH TRANSPORT MINISTER BERNARD BOSSON HAS SAID THE STRIKES PUSHED THE AIRLINE'S LOSSES TO MORE THAN SEVEN BILLION FRANCS THE AIRLINE WOULDN'T CONFIRM MR BOSSON'S FORECAST 9312090120 931209 CENTRAL HOLDING TO POST CHARGE CLINTON TOWNSHIP MICH CENTRAL HOLDING CO SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF ABOUT 2 MILLION OR 53 CENTS A SHARE BECAUSE OF THE SALE OF THE MAIN OFFICE BUILDING OF ITS COLONIAL CENTRAL SAVINGS BANK UNIT AS A RESULT THE FINANCIAL SERVICES CONCERN SAID IT EXPECTS TO REPORT A NET LOSS IN THE SAME PERIOD CENTRAL HOLDING SHARES CLOSED UNCHANGED AT 5 IN NASDAQ STOCK EXCHANGE TRADING 9312090119 931209 TECHNOLOGY TEXAS INSTRUMENTS' DEVICE TRIPLES SPEED OF COMPUTER CHIPS DALLAS TEXAS INSTRUMENTS INC CAPPING A DECADE OF WORK SAID IT HAS DEMONSTRATED IN THE LAB A NEW TYPE OF SEMICONDUCTOR DEVICE THAT WORKS THREE TIMES AS FAST AS CONVENTIONAL COMPUTER CHIPS THE ELECTRONICS GIANT SAID THE NEW CHIP OPERATING AT ROOM TEMPERATURE USES QUANTUMMECHANICAL TECHNIQUES THAT REDUCE BY AS MUCH AS 50 TIMES THE SIZE OF SOME OF THE SEMICONDUCTOR'S PARTS SMALLER PARTS IN TURN SPEED UP THE CHIP'S PERFORMANCE SINCE THE ELECTRONS DON'T HAVE TO TRAVEL AS FAR TO DO THE SAME AMOUNT OF WORK THE SMALLER THESE DEVICES ARE THE FASTER THEY CAN OPERATE SAID JOHN RANDALL A SENIOR MEMBER OF TEXAS INSTRUMENTS' TECHNICAL STAFF THOUGH MR RANDALL SAID THE NEW CHIPS COULD EVENTUALLY REPLACE TODAY'S SEMICONDUCTORS INCLUDING THOSE NOW MADE BY TEXAS INSTRUMENTS HE SAID THE DEVICES ARE STILL PROHIBITIVELY EXPENSIVE TO MAKE MR RANDALL SAID THE CHIPS PROBABLY WON'T BE WIDELY AVAILABLE FOR FIVE OR SIX YEARS THIS IS STILL VERY MUCH A LABORATORY PROJECT HE SAID THE TEXAS INSTRUMENTS' TECHNIQUE BASED ON PRINCIPLES OF QUANTUM PHYSICS ESSENTIALLY BUILDS ON A PRACTICE LONG THOUGHT TO BE LITTLE MORE THAN AN INTHELAB NOVELTY THE IDEA IS THAT ELECTRONS UNDER CERTAIN CONDITIONS CAN ACT AS WAVES ALLOWING THEM TO PASS THROUGH BARRIERS THAT PREVIOUSLY WOULD HAVE STOPPED THEM THE USE OF WAVELENGTH FILTERS INSTEAD OF TRADITIONAL CIRCUITRY TO DIRECT THE PATH OF THE ELECTRONS CUTS DOWN ON THE SIZE OF THE DEVICES AND CAN CUT THE NUMBER OF TRANSISTORS NEEDED IN A CHIP THOUGH OTHER SEMICONDUCTOR COMPANIES INCLUDING JAPAN'S FUJITSU LTD HAVE SHOWN THAT QUANTUMMECHANICAL DEVICES CAN WORK IN EXTREMELY COLD TEMPERATURES TEXAS INSTRUMENTS IS THE FIRST COMPANY TO DEMONSTRATE THE CHIPS AT ROOM TEMPERATURE TEXAS INSTRUMENTS' WORK WAS PRESENTED IN A PAPER THIS WEEK AT THE INTERNATIONAL ELECTRON DEVICES MEETING IN WASHINGTON 9312090118 931209 ACCOUNTING COSTS ANOTHER TAX BY ARTHUR P HALL HERE'S A STUNNING PIECE OF INFORMATION THAT VICE PRESIDENT AL GORE'S NATIONAL PERFORMANCE REVIEW REPORT MISSED FOR 90 OF US CORPORATIONS THOSE WITH LESS THAN 1 MILLION IN ASSETS THE TOTAL COST OF COMPLYING WITH THE 1990 FEDERAL INCOME TAX CODE EXCEEDED THEIR INCOME TAX LIABILITY BY 390 IN LAYMAN'S TERMS THIS MEANS THAT FOR EVERY 100 IN TAXES PAID BY AMERICA'S SMALL BUSINESSES 390 WAS PAID BY THESE BUSINESSES TO COMPLY WITH THE TAXES THAT'S GOOD NEWS FOR ACCOUNTANTS BUT THESE COSTS OBVIOUSLY HAMPER BUSINESS PRODUCTIVITY AND SPEAK TO THE NEED FOR MAJOR REFORMS IN THE TAX CODE WHILE THESE NUMBERS ATTEST TO HOW SMALL BUSINESS IS HURT BY THE COSTS OF TAX COMPLIANCE BIG BUSINESS IS BY NO MEANS IMMUNE DATA FROM A NEW TAX FOUNDATION STUDY CONDUCTED BY PROFS JOEL SLEMROD OF THE UNIVERSITY OF MICHIGAN AND MARSHA BLUMENTHAL OF THE UNIVERSITY OF ST THOMAS SHOWS THAT THE ESTIMATED 1992 TOTAL COST OF INCOME TAX COMPLIANCE FOR THE FORTUNE 500 AMOUNTED TO 1055 BILLION RESULTING IN A PERCOMPANY AVERAGE OF 211 MILLION THE FEDERAL INCOME TAX SYSTEM ACCOUNTS FOR ABOUT 70 OF THIS COST STATE AND LOCAL INCOME TAX COMPLIANCE ACCOUNTS FOR THE REMAINING 30 THERE WAS NEAR UNANIMITY AMONG SURVEY RESPONDENTS NEARLY ALL OF WHOM WERE TAX EXECUTIVES THAT THE LAST MAJOR TAX SIMPLIFICATION BILL THE TAX REFORM ACT OF 1986 ACTUALLY ADDED COMPLEXITY TO THE INCOME TAX SYSTEM AND INCREASED COMPLIANCE COSTS INDEED MANY OF THE ACT'S PROVISIONS WOULD PROBABLY HAVE FAILED ANY REASONABLE COSTBENEFIT CRITERIA IN FACT THE FEDERAL CORPORATE INCOME TAX SYSTEM SEEMS LIKELY TO FAIL COSTBENEFIT TESTS FOR MOST COMPANIES WITH LESS THAN 250 MILLION IN ASSETS BECAUSE OF ECONOMIES OF SCALE IN INCOME TAX COMPLIANCE COMPANIES BELOW THE 250 MILLION ASSET LEVEL BEAR RELATIVE COSTS OF COMPLIANCE AT LEAST 13 TIMES GREATER THAN THOSE BORNE BY THE LARGEST US CORPORATIONS COMPANIES WITH MORE THAN 10 BILLION IN ASSETS THE APPROXIMATELY 5500 COMPANIES WITH MORE THAN 250 MILLION IN ASSETS REPRESENTING ABOUT 015 OF ALL US CORPORATIONS ACCOUNT FOR ABOUT THREEQUARTERS OF ALL FEDERAL CORPORATE INCOME TAX REVENUES THE CORPORATE INCOME TAX CODE IS PARTICULARLY DAMAGING FOR CORPORATIONS WITH LESS THAN 1 MILLION IN ASSETS THESE CORPORATIONS' COLLECTIVE 1990 TAX LIABILITY AMOUNTED TO ABOUT 41 BILLION BUT THEIR 1990 COST OF COMPLIANCE WAS ABOUT 159 BILLION THE COMPLIANCE COST ESTIMATE COMES FROM APPLYING A LABOR COST ESTIMATE TO THE HOURS OF COMPLIANCE TIME THAT A 1983 IRSCOMMISSIONED ARTHUR D LITTLE INC SURVEY FOUND IT TOOK COMPANIES ON AVERAGE TO COMPLY WITH TAX FORMS 1120 AND 1120S THE CORPORATION AND SUBCHAPTER S CORPORATION INCOME TAX FORMS TAKING THE AVERAGE LABOR COSTS FOR THE IRS AND ARTHUR ANDERSEN A LARGE ACCOUNTING FIRM YIELDS A LABOR COST ESTIMATE OF 34 AN HOUR THE ARTHUR D LITTLE SURVEY FOUND THAT IT TOOK BUSINESSES 1388 HOURS TO COMPLY WITH FORM 1120 AND 1258 HOURS TO COMPLY WITH FORM 1120S WHILE THE 1983 STUDY IS NOT AN IDEAL VEHICLE WITH WHICH TO MEASURE THE COSTS OF TAX COMPLIANCE IT IS NONETHELESS EFFECTIVE AS NOTED EARLIER THE 1986 TAX SIMPLIFICATION LEGISLATION ACTUALLY INCREASED COMPLEXITY FOR COMPANIES WITH LESS THAN 1 MILLION IN ASSETS MEANING THE 1983 STUDY REPRESENTS A CONSERVATIVE ESTIMATE OF THE COSTS OF TAX COMPLIANCE FOR BIG BUSINESS THE SLEMROD/BLUMENTHAL SURVEY FOUND THAT TAX EXECUTIVES BELIEVE THE FEDERAL CORPORATE INCOME TAX CODE IS MOST COMPLEX IN TWO GENERAL AREAS 1 CAPITAL COST RECOVERY AND 2 THE RULES PERTAINING TO FOREIGNSOURCE INCOME THE TOP TWO SURVEY MENTIONS DEPRECIATION AND THE CORPORATE ALTERNATIVE MINIMUM TAX PERTAIN TO CAPITAL COST RECOVERY THE TAX REFORM ACT OF 1986 INTRODUCED THE AMT AND THE THIRD MOST MENTIONED AREA OF COMPLEXITY UNIFORM INVENTORY CAPITALIZATION THE 1986 ACT ALSO COMPLICATED THE EXISTING RULES PERTAINING TO FOREIGNSOURCE INCOME FOR THE FORTUNE 500 COMPLYING WITH THE RULES FOR FOREIGNSOURCE INCOME ALONE ACCOUNTS FOR 455 OF THE COST OF FEDERAL COMPLIANCE 667000 FOR THE AVERAGE FIRM THIS DATA SHOULD BE SYNTHESIZED USING A COSTBENEFIT RULE THAT SETS 3 AS A LIMIT FOR THE RATIO OF COST COMPLIANCE TO INCOME TAX REVENUE THAT APPROXIMATES THE RATIO OF TOTAL COMPLIANCE COSTS TO TOTAL FEDERAL INCOME TAX REVENUE FOR CORPORATIONS WITH MORE THAN 250 MILLION IN ASSETS THE 3 RULE IS ALSO CONSISTENT WITH EVIDENCE FROM AUSTRALIA AND THE UNITED KINGDOM A 1991 STUDY OF RELATIVELY LARGE BUSINESSES IN AUSTRALIA SHOWED A 32 RATIO OF COMPLIANCE COSTS TO TAX REVENUE A 1989 STUDY OF RELATIVELY SMALL BUSINESSES IN THE UK DISCOVERED A RATIO OF 222 THE COST OF COMPLYING WITH A TAX SYSTEM BURDENS BUSINESS JUST LIKE A TAX ITSELF FOR EACH BUSINESS COMPLIANCE COSTS ACT AS A TAX SURCHARGE FOR 1990 THE ESTIMATED SIZE OF THAT SURCHARGE FOR ALL CORPORATIONS AMOUNTED TO 408 BILLION FOR ALL BUSINESSES CORPORATIONS PARTNERSHIPS AND SOLE PROPRIETORSHIPS THE SURCHARGE AMOUNTED TO AN ESTIMATED 112 BILLION 123 BILLION FOR 1993 SUFFICE IT TO SAY THERE ARE A LOT OF OTHER MORE USEFUL COMMODITIES AMERICAN BUSINESSES COULD BE SPENDING THEIR MONEY ON ONE WAY CONGRESS AND THE CLINTON ADMINISTRATION COULD GIVE BUSINESSES A TAX CUT WOULD BE TO DEVELOP A COSTBENEFIT CRITERION TO REDUCE COMPLIANCE COSTS IF A 3 RULE HAD BEEN APPLIED TO THE 1990 TAX YEAR CORPORATIONS COULD HAVE SAVED UP TO 379 BILLION BUSINESSES COULD HAVE SAVED UP TO 1085 BILLION GRANTING BUSINESSES SUCH A COMPLIANCECOST TAX CUT WOULD LIBERATE A SUBSTANTIAL SUM OF MONEY FOR THE EXPANSION OF PAYROLLS AND CAPITAL INVESTMENTS AND WOULD LIKELY RAISE REVENUE FOR THE TREASURY BY INCREASING BUSINESS'S TAXABLE INCOME REDUCING THE COMPLIANCE BURDEN OF THE TAX CODE MAY NOT BE A POPULAR MOVE WITH SOME TAX LAWYERS ACCOUNTANTS OR WASHINGTON TAX LOBBYISTS WHOSE LIVELIHOODS ARE DEPENDENT ON A COMPLICATED TAX STRUCTURE BUT IT WOULD GO A LONG WAY TOWARD ALLOWING AMERICAN BUSINESS TO REDIRECT TALENTED PERSONNEL TO MORE PRODUCTIVE OCCUPATIONS AND INCREASE PROFITS MR HALL IS AN ECONOMIST AT THE TAX FOUNDATION IN WASHINGTON 9312090117 931209 TRIMAS TO REDEEM PREFERRED ANN ARBOR MICH TRIMAS CORP A DIVERSIFIED MANUFACTURER SAID IT WILL REDEEM ALL OF THE SHARES OUTSTANDING OF ITS 100 CONVERTIBLE PARTICIPATING PREFERRED STOCK MASCOTECH INC WHICH OWNS ALL OF THE SHARES OUTSTANDING OF THE TRIMAS PREFERRED STOCK SAID IT WILL CONVERT THOSE SHARES INTO APPROXIMATELY 78 MILLION SHARES OF TRIMAS COMMON STOCK VALUED AT ABOUT 177 MILLION MASCOTECH WAS ISSUED THE SHARES IN 1988 AS PARTIAL PAYMENT FOR TRIMAS'S PURCHASE OF NINE MASCOTECH DIVISIONS TRIMAS SAID IT WILL REALIZE A NET DIVIDEND SAVINGS OF 61 MILLION ANNUALLY ON THE CONVERSION BASED ON THE DIFFERENCE BETWEEN THE PREFERRED DIVIDEND RATE AND THE COMMON'S UPON COMPLETION OF THE CONVERSION MASCOTECH WILL OWN 159 MILLION SHARES OR 43 OF TRIMAS'S COMMON OUTSTANDING 9312090116 931209 AT&T PLANS A VENTURE IN PERU NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO AND TELE 2000 A PERUVIAN TELECOMMUNICATIONS CONCERN SAID THEY AGREED TO INSTALL A 35 MILLION DIGITAL CELLULARTELEPHONE SYSTEM IN PERU AT&T SAID THAT THE VENTURE MARKS ITS ARRIVAL IN PERU'S TELECOMMUNICATIONSEQUIPMENT MARKET AND THAT CLOSELY HELD TELE 2000 WILL EVENTUALLY BASE ITS CELLULAR SERVICES ON AN AT&T DIGITAL SWITCH FOR WIRELESS APPLICATIONS SEPARATELY BOTH COMPANIES ANNOUNCED A JOINT PROJECT TO INSTALL A FIBEROPTIC RING IN LIMA TO IMPROVE TELE 2000'S CABLETELEVISION TRANSMISSION CAPABILITIES 9312090115 931209 WHO'S NEWS KENDALL INTERNATIONAL INC KENDALL INTERNATIONAL INC MANSFIELD MASS WILLIAM REINHARDT FORMER CHIEF OPERATING OFFICER OF BOC HEALTH CARE GROUP WAS ELECTED A DIRECTOR TO FILL A VACANCY ON THE BOARD OF THE MEDICALSUPPLY COMPANY 9312090114 931209 KAUFMAN & BROAD TENDER OFFER LOS ANGELES KAUFMAN & BROAD HOME CORP SAID THAT BASED ON A PRELIMINARY COUNT IT HAS ACCEPTED MORE THAN 23 MILLION OF ITS SPECIAL COMMON SHARES IN ITS 19ASHARE TENDER OFFER THE HOMEBUILDING COMPANY HAD OFFERED TO BUY BACK ALL 51 MILLION SHARES OF THE STOCK OUTSTANDING IN ADDITION SUNAMERICA INC'S SUN LIFE INSURANCE CO OF AMERICA UNIT HAS AGREED TO SELL KAUFMAN & BROAD ITS WARRANTS TO BUY NEARLY 24 MILLION SHARES OF THE SPECIAL COMMON KAUFMAN & BROAD WILL PAY 19 A SHARE MINUS THE 696 WARRANT EXERCISE PRICE FOR THE WARRANTS MERRILL LYNCH & CO IS DEALERMANAGER FOR THE TENDER OFFER 9312090113 931209 SEC IS PROBING STOCK TRADING IN VIACOM INC INQUIRY INVOLVES PURCHASES BY CHAIRMAN AND WMS AMID PARAMOUNT BATTLE BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING TRADING IN VIACOM INC SHARES BEFORE AND AFTER ITS ACQUISITION AGREEMENT WITH PARAMOUNT COMMUNICATIONS INC INCLUDING PURCHASES BY VIACOM CHAIRMAN SUMNER REDSTONE AND WMS INDUSTRIES INC A COMPANY IN WHICH MR REDSTONE HAS A MAJOR STAKE THE SEC DECLINED TO COMMENT AND VIACOM OFFICIALS SAID THE CABLETELEVISION COMPANY HASN'T BEEN CONTACTED BY THE AGENCY AND IS UNAWARE OF ANY INVESTIGATION BUT ONE OFFICIAL FAMILIAR WITH THE PROBE SAID IT IS AN ACTIVE INQUIRY DECLINING TO GIVE DETAILS GIVEN THE TRADING AND MAGNITUDE OF THE DEAL AN INQUIRY ISN'T UNUSUAL HE ADDED WORD OF THE SEC INVESTIGATION COMES AS THE DELAWARE SUPREME COURT PREPARES TO HEAR AN APPEAL TODAY BY PARAMOUNT AND VIACOM OF A LOWERCOURT RULING AGAINST THEIR FRIENDLY ACQUISITION AGREEMENT LAWYERS FAMILIAR WITH THE CASE SAID THE STATE HIGH COURT COULD RULE AS EARLY AS TODAY SINCE THE LAUNCH OF THE VIACOM INQUIRY SEC INVESTIGATORS HAVE BEGUN TO EXPLORE OTHER ISSUES THE OFFICIAL FAMILIAR WITH THE THE PROBE SAID ADDING AS THIS THING GOES ON THE UNIVERSE OF ISSUES EXPANDS HE DECLINED TO ELABORATE ACCORDING TO PEOPLE FAMILIAR WITH THE PROBE THE SEC WEEKS AGO BEGAN THE INVESTIGATION INTO HEAVY BUYING OF VIACOM SHARES BY MR REDSTONE BEFORE VIACOM AGREED IN SEPTEMBER TO ACQUIRE PARAMOUNT THIS WEEK IT WAS DISCLOSED THAT WMS A COMPANY 249OWNED BY MR REDSTONE AGGRESSIVELY ACQUIRED VIACOM SHARES AFTER THE AGREEMENT WAS ANNOUNCED AND JUST AFTER QVC NETWORK INC LAUNCHED A RIVAL BID FOR PARAMOUNT MR REDSTONE'S PURCHASES OF VIACOM SHARES IN JULY AND AUGUST MEANWHILE HELPED BOLSTER THE PRICE OF THE THINLY TRADED SECURITIES SHORTLY BEFORE VIACOM RESUMED PREVIOUSLY STALLED MERGER TALKS WITH PARAMOUNT WMS'S LATER PURCHASES APPEARED TO HAVE HELPED PROP UP THE STOCK PRICE AT A CRITICAL TIME VIACOM CLASS B SHARES WERE THEN THE LARGEST COMPONENT OF VIACOM'S OFFER IN THE PARAMOUNT TAKEOVER BATTLE THE BUYING BY MR REDSTONE AND OTHERS HAS BEEN AN IMPORTANT ISSUE AS INVESTORS HAVE SOUGHT TO VALUE COMPETING CASHANDSTOCK OFFERS BY VIACOM AND QVC HEAVY BUYING OF VIACOM SHARES COULD BOOST THE VALUE OF VIACOM'S BID WHICH IS CURRENTLY VALUED AT 95 BILLION QVC'S BID IS CURRENTLY VALUED AT 102 BILLION YESTERDAY NEW DETAILS ABOUT THE TIMING OF INVESTMENTS BY MR REDSTONE AND TWO TOP WMS EXECUTIVES IN EACH OTHER'S COMPANIES RAISED ADDITIONAL QUESTIONS ABOUT WHETHER THE TRADES WERE SOMEHOW LINKED FOR MUTUAL BENEFIT MR REDSTONE'S STOCK BUYING TOGETHER WITH HIS PUBLIC DISCLOSURE ON OCT 12 OF PLANS TO ACQUIRE MORE THAN 25 OF WMS APPEARS TO HAVE DRIVEN UP THE PRICE OF WMS STOCK JUST BEFORE WMS'S PRESIDENT SOLD MOST OF HIS WMS HOLDINGS AROUND THE SAME TIME WMS LAUNCHED ITS OWN THREEWEEK BUYING SPREE FOR VIACOM STOCK A SPOKESMAN FOR VIACOM DENIED THERE WAS ANY QUIDPROQUO CONNECTION BETWEEN MR REDSTONE'S PURCHASES OF WMS STOCK AND THE WMS PURCHASES OF VIACOM STOCK THE SPOKESMAN SAID MR REDSTONE HAS BEEN BUYING WMS STOCK FOR NEARLY 10 YEARS INCLUDING THE FIRST PART OF THIS YEAR HE ADDED THE SUGGESTION THAT THERE'S ANY CONNECTION BETWEEN THAT AND A WMS PURCHASE OF VIACOM STOCK IS LUDICROUS MR REDSTONE PUBLICLY DISCLOSED ON OCT 12 THAT HE HAD BOUGHT 281000 SHARES OF WMS BETWEEN JULY 22 AND SEPT 27 BOOSTING HIS STAKE TO JUST UNDER 25 AT PRICES RANGING FROM 2250 TO 2725 A SHARE AT THE SAME TIME HE ALSO ANNOUNCED HE WAS SEEKING ANTITRUST APPROVAL TO BOOST HIS WMS STAKE BEYOND 25 THOSE DISCLOSURES HELPED FUEL A 2625 GAIN THAT DAY IN WMS SHARES WHICH CLOSED AT A RECORD HIGH OF 31 ON THE NEW YORK STOCK EXCHANGE TWO DAYS LATER ON OCT 14 WMS PRESIDENT NEIL D NICASTRO BEGAN SELLING OFF 220000 SHARES OF WMS STOCK SOME 210000 SHARES WERE RELATED TO THE EXERCISE OF STOCK OPTIONS HE SOLD THE SHARES AT PRICES RANGING FROM 3125 TO 31875 FOUR DAYS LATER HE ENDED HIS SELLOFF WHICH LEFT HIM WITH ONLY 2000 WMS SHARES MR NICASTRO DIDN'T RETURN CALLS SEEKING COMMENT WMS'S HEAVY BUYING OF VIACOM SHARES BEGAN AROUND THE SAME TIME BETWEEN THE LAST WEEK OF SEPTEMBER AND MIDOCTOBER IT BOUGHT 500000 CLASS B SHARES OR ABOUT 20 OF THE TRADING VOLUME OF VIACOM STOCK DURING THE PERIOD EARLIER THIS WEEK WMS CHAIRMAN LOUIS NICASTRO THE FATHER OF NEIL NICASTRO DENIED THAT ANYONE CONNECTED WITH VIACOM HAD ENCOURAGED HIM TO BUY THE VIACOM SHARES A PERSON CLOSE TO VIACOM NOTED THAT THE STOCK PRICE OF WMS WHICH MAKES PINBALL MACHINES VIDEO GAMES AND CASINO GAMBLING EQUIPMENT HAS BEEN RISING THIS YEAR ALONG WITH OTHER GAMERELATED STOCKS AND PARTLY BECAUSE OF RECENT PROFITS FROM ITS HIT VIDEO GAME MORTAL KOMBAT MR REDSTONE HAS DEFENDED HIS OWN CONTROVERSIAL PURCHASES OF VIACOM STOCK JUST PRIOR TO STRIKING A CASHANDSTOCK DEAL WITH PARAMOUNT AS PART OF A LONGSTANDING FULLY DISCLOSED STOCKPURCHASE PROGRAM HE ADDED THAT THEY TOOK PLACE AFTER INITIAL TALKS WITH PARAMOUNT ENDED IN JULY AT A TIME WHEN HE DID NOT BELIEVE TALKS WOULD RESUME BUT THE TALKS DID RESUME IN AUGUST AND MR REDSTONE STOPPED BUYING STOCK THEN IN SEPTEMBER WHEN MR REDSTONE'S PURCHASES WERE REPORTED HE ALSO SAID HE HAD RECEIVED NO INQUIRY ABOUT THEM FROM THE SEC VIACOM SHARES ROSE IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY REFLECTING A BELIEF AMONG TRADERS THAT NEWS OF THE CONTROVERSIAL STOCKBUYING BY WMS MAY HURT VIACOM'S CHANCES OF WINNING THE PARAMOUNT TAKEOVER BATTLE THE COMPANY THAT WINS THE TAKEOVER BATTLE WOULD HAVE TO ISSUE MASSIVE AMOUNTS OF NEW SHARES WHICH COULD DEPRESS ITS STOCK PRICE VIACOM B SHARES CLOSED AT 44625 UP 875 CENTS A SHARE WARREN GETLER CONTRIBUTED TO THIS ARTICLE 9312090112 931209 YOUR MONEY MATTERS MORTGAGE FEES ARE TEMPTING DESPITE RISE BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL IF MORTGAGE INTEREST RATES TURNED THE CORNER AND HEADED UP WHILE YOU WERE STILL WAITING FOR THEM TO HIT BOTTOM YOU'RE NOT ALONE THOUSANDS OF HOMEOWNERS ON THE BRINK OF REFINANCING THEIR MORTGAGES DELAYED LOCKING IN RATES OF 7 OR LESS IN HOPES OF SEEING THEM DROP FURTHER NOW THEY'RE KICKING THEMSELVES FOR MISSING THE 28YEAR LOW IN RATES THEIR MISTAKE THE EXPERTS SAY WAS IN TRYING TO TIME THE MARKET RATHER THAN TAKE A KNOWN SAVINGS OF ALL INTEREST RATES IN THE DEPOSIT AND LOAN FIELD MORTGAGE RATES ARE THE MOST FICKLE SAYS ROBERT K HEADY PUBLISHER OF THE BANK RATE MONITOR EVEN THE BEST ECONOMISTS HAVE A LOUSY RECORD AT CALLING MARKET SWINGS HE SAYS BUT MISSING THE BOTTOM DOESN'T MEAN MISSING THE BOAT DESPITE THE JUMP OF ABOUT A HALF POINT SINCE MIDOCTOBER MORTGAGE INTEREST RATES ARE ONLY BACK TO WHERE THEY WERE LAST SUMMER THIRTYYEAR FIXEDRATE MORTGAGES ARE STILL AVAILABLE FOR 75 WITH NO POINTS AND FINANCIAL ADVISERS SAY THAT'S DARN GOOD WE ARE STILL TALKING ABOUT THE BEST RATES IN 25 YEARS SAYS CARRIE STAPLES OF SIGMA FINANCIAL SERVICES A GREAT FALLS VA MORTGAGEBROKERAGE CONCERN IT IS NOTHING TO CRY ABOUT WHAT IS IMPORTANT IS HOW MUCH MONEY YOU CAN SAVE SO SIT DOWN AND WORK OUT THE NUMBERS IF THERE'S A SAVINGS THE EXPERTS SAY TAKE IT IF RATES HEAD DOWN YOU CAN ALWAYS REFINANCE AGAIN THE FIRST STEP IS TO FIGURE THE MONTHLY SAVINGS IN PRINCIPAL AND INTEREST THEN CALCULATE HOW LONG YOU NEED TO OWN THE HOME BEFORE YOU'LL ACTUALLY BENEFIT FROM THE REFINANCING THAT MEANS DIVIDING THE TOTAL UPFRONT REFINANCING COSTS BY THE MONTHLY SAVINGS MINUS THE INCOMETAX INCREASE THAT COMES FROM A LOWER MORTGAGE DEDUCTION PEOPLE WITH BIG MORTGAGES MAY BE SURPRISED AT HOW QUICKLY EVEN A MODEST DROP IN RATES CAN TRANSLATE INTO SAVINGS IF WE ARE TALKING A NO POINTS' MORTGAGE IT IS VERY EASY TO JUSTIFY EVEN A HALFPOINT SAVINGS SAYS MARK T DONOHUE A PRINCIPAL WITH CHESTNUT HILL FINANCIAL GROUP BROOKLINE MASS ON A 200000 MORTGAGE FOR EXAMPLE CLOSING COSTS OF 1500 CAN BE PAID OFF IN ABOUT TWO YEARS WITH JUST A HALFAPERCENTAGEPOINT SAVINGS HE SAYS SOME LENDERS OFFER NO COST MORTGAGES WHERE ALL CHARGES AND CLOSING FEES ARE COVERED BY A SOMEWHAT HIGHER MORTGAGE RATE THAT MEANS THERE IS NO PAYBACK PERIOD TO CALCULATE AND THAT IS A PLUS FOR REFINANCERS BUT THESE HIGHERRATE NOCOST MORTGAGES HAVE BEEN THE FIRST TO BE REFINANCED WHEN RATES FELL AND LENDERS LOST MONEY SO TO DISCOURAGE BORROWERS LENDERS ARE MAKING NOCOST LOANS LESS DESIRABLE BY BOOSTING THE RATE SAYS GREG GRAPSAS A LOAN OFFICER WITH AMERICAN NATIONAL MORTGAGE CORP SILVER SPRING MD THEY ARE NOT AS GOOD A DEAL AS THEY USED TO BE A BETTER BARGAIN THESE DAYS HE SAYS MAY BE MORTGAGES ON WHICH BORROWERS BUY DOWN THEIR RATE BY PAYING POINTSTHE UPFRONT INTEREST CHARGES CALCULATED AS A PERCENTAGE OF THE LOAN AMOUNT THAT'S BECAUSE THE ZEROPOINT MORTGAGE RATE HAS GONE UP MORE QUICKLY THAN RATES FOR THE ONEPOINT OR TWOPOINT LOAN BUT POINTS CAN CAUSE A TAX HEADACHE FOR REFINANCERS THEY CAN'T BE DEDUCTED IN THE YEAR OF REFINANCING BUT MUST BE AMORTIZED OVER THE LIFE OF THE MORTGAGE STILL THEY MAY BE WORTH CONSIDERING FOR PEOPLE WHO BOTH PLAN TO STAY PUT AND THINK INTEREST RATES ARE HEADED UP WAYNE SACCHETTI OF WALPOLE MASS FOR EXAMPLE IS PLANNING TO PAY TWO POINTS OR 2 OF HIS LOAN AMOUNT TO REDUCE THE RATE ON A 15YEAR MORTGAGE TO 65 SINCE HE PLANS TO STAY IN HIS HOUSE FOR THE FULL LIFE OF THE MORTGAGE THE POINTS WILL RAISE HIS EFFECTIVE RATE TO 682 BUT THAT'S FAR BETTER THAN THE 7 1/8 MORTGAGE HE COULD GET WITHOUT THE POINTS REMEMBER THOUGH POINTS ALSO EXTEND THE BREAKEVEN POINT ON A REFINANCING GIVEN THE DIFFERENCE IN PRINCIPAL AND INTEREST PAYMENTS IT WILL TAKE MR SACCHETTI JUST UNDER FIVE YEARS TO SAVE ENOUGH TO BREAK EVEN ON THE POINTS HE'S PAYING LOST TAX DEDUCTIONS AND INVESTMENT OPPORTUNITIES WOULD MAKE THE BREAKEVEN POINT EVEN LONGER NOT EVERYONE NEEDS THE STABILITY OFFERED BY 15 OR 30YEAR FIXEDRATE MORTGAGES IF YOU'RE SURE THAT YOU WON'T OWN THE HOUSE FOR MORE THAN A FEW YEARS THERE ARE SEVERAL PRODUCTS THAT WILL SHAVE POINTS OFF YOUR MORTGAGE RATE SOME OFFER FIXED RATES FOR FIVE OR SEVEN YEARS AT WHICH TIME THE MORTGAGE BECOMES DUE IN FULL WITH A CONDITIONAL RIGHT TO REFINANCE OTHERS OFFER FIXED RATES THAT CONVERT TO A ONEYEAR ADJUSTABLE RATE MORTGAGE AFTER A SET NUMBER OF YEARS AND OF COURSE THERE IS THE ONEYEAR ADJUSTABLE MORTGAGE RATES HERE ARE STILL IN THE 45 RANGE WITH THE TYPICAL TWOPERCENTAGEPOINT ANNUAL CAP AND SIXPOINT LIFETIME CAP ON RATES THESE MORTGAGES OFFER GREAT SAVINGS TO PEOPLE WHO KNOW THEY'LL OWN THEIR HOME FOR ONLY A FEW YEARS OR WHO ARE WILLING TO GAMBLE THAT INTEREST RATES WON'T RISE ENOUGH TO ERASE THEIR INITIAL SAVINGS THOSE WHO HAVEN'T YET STARTED THEIR PAPERWORK SHOULDN'T DAWDLE SAYS MS STAPLES NOTING THAT IT TYPICALLY TAKES ABOUT 45 DAYS TO CLOSE A REFINANCING SHE SAYS YOU CAN LOCK IN YOUR RATE AT ANY TIME BUT MIGHT GET A BETTER RATE IF YOUR PAPERWORK IS ALREADY IN PROGRESS SOME WHO HAVE YET TO APPLY FOR A REFINANCING MAY WORRY THAT BY THE TIME THEY FINISH THE APPLICATION PROCESS RATES WILL BE HIGH ENOUGH TO MAKE THEIR EXISTING MORTGAGE LOOK LIKE A BARGAIN IT'S A GAMBLE SAYS MR GRAPSAS BUT A SMALL ONE YOU HAVE TO BE WILLING TO ANTE UP THE APPLICATION FEE HE SAYS AFTER THAT HE SAYS YOU HAVE NOTHING TO LOSE 9312090111 931209 BOND DEALERS REVEAL NEW DETAILS OF BAN ON POLITICAL DONATIONS WASHINGTON THE VOLUNTARY BAN ON POLITICAL CONTRIBUTIONS BY MUNICIPALBOND DEALERS WILL COVER THE FIRMS' LAWYERS AND POSSIBLY EMPLOYEES' SPOUSES ACCORDING TO NEW STRICT DETAILS RELEASED YESTERDAY AT LEAST 42 SECURITIES FIRMS INCLUDING MOST OF WALL STREET'S BIG FINANCIAL HOUSES AND MANY OF THE LARGEST REGIONAL CONCERNS HAVE AGREED TO THE VOLUNTARY BAN ON POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS WHO AWARD BOND BUSINESS THE INITIAL AGREEMENT UNVEILED OCT 18 BY 17 WALL STREET FIRMS THAT HAD BEEN WORKING ON THE BAN FOR MORE THAN A YEAR PROHIBITED CONTRIBUTIONS FROM THE FIRMS THEIR POLITICALACTION COMMITTEES TOP EXECUTIVES AND MUNICIPALFINANCE SPECIALISTS THE EXPANDED GROUP OF FIRMS YESTERDAY RELEASED MORE DETAILS OF THE AGREEMENT INCLUDING A REQUIREMENT THAT BOND UNDERWRITERS' CONTRACTS WITH THEIR LAWYERS CONTAIN A PROHIBITION AGAINST POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS THE AGREEMENT ALSO CALLS FOR PARTICIPATING FIRMS TO CLEAR IN ADVANCE ANY POLITICAL ACTIVISM BY THE SPOUSES OF EMPLOYEES AFFECTED BY THE BAN THE VOLUNTARY BAN IS PART OF A MULTIPRONGED EFFORT TO END THE APPEARANCE THAT BOND DEALERS ARE BUYING BUSINESS BY SUPPORTING THE ELECTIONS OF OFFICIALS THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER THE PAYTOPLAY PRACTICE IS ALSO A REALITY WE HAVE AMPLE REASON TO BELIEVE THAT THERE ARE SIGNIFICANT PROBLEMS AND THAT WE MUST ADDRESS THEM SEC CHAIRMAN ARTHUR LEVITT SAID IN A STATEMENT MR LEVITT IS PRESSING OTHER MUNICIPALFINANCE PROFESSIONALS INCLUDING LAWYERS AND ADVISERS TO ADOPT SIMILAR RESTRICTIONS BUT IS MEETING SOME RESISTANCE I REMAIN CONCERNED BY RECENT REPORTS OF RESOLUTIONS AND ATTEMPTED BOYCOTTS OF VOLUNTARY INDUSTRY EFFORTS TO END PAYTOPLAY PRACTICES HE SAID BOYCOTTING THE PROGRESS WE'VE MADE IS COUNTERPRODUCTIVE TO OUR COMMON GOAL OF INCREASING THE INTEGRITY AND PUBLIC CONFIDENCE SO VITAL TO THE MARKET UPON WHICH OUR TOWNS CITIES AND STATES DEPEND 9312090110 931209 JP MORGAN PLANS TO RAISE ITS DIVIDEND AND BUY BACK SHARES NEW YORK JP MORGAN & CO SAID IT IS RAISING ITS DIVIDEND 133 AND PLANS TO REPURCHASE AS MANY AS SEVEN MILLION COMMON SHARES THE COMPANY SAID ITS EXCELLENT FINANCIAL PERFORMANCE AND STRONG CAPITAL BASE SUPPORT THE MOVES WITH CAPITAL LEVELS RISING AND LENDING STILL SLOW A GROWING NUMBER OF BIG BANKS HAVE CHOSEN TO USE THEIR EXCESS CAPITAL TO REPURCHASE SHARES OR INCREASE DIVIDENDS WHILE MORGAN'S DIVIDEND INCREASE WAS EXPECTED THE SHARE REPURCHASE WAS A POSITIVE SURPRISE SAID STEPHEN BERMAN BANKING ANALYST AT NATWEST SECURITIES THE REPURCHASE REPRESENTS ABOUT 35 OF MORGAN'S SHARES OUTSTANDING THE QUARTERLY DIVIDEND WILL RISE TO 68 CENTS FROM 60 CENTS A SHARE YESTERDAY JP MORGAN'S SHARES CLOSED UP 150 AT 7275 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THEY NEED TO DO THIS KIND OF STUFF IT HAS BEEN A PRETTY LOUSY STOCK FOR THE LAST COUPLE OF YEARS SAID MR BERMAN THE SHARE REPURCHASE WILL LESSEN THE DILUTIVE IMPACT ON PERSHARE EARNINGS OF INCREASING EQUITY THROUGH ITS EMPLOYEE BENEFIT PLANS THE COMPANY SAID IT HAS REPURCHASED ABOUT TWO MILLION SHARES FOR ITS EMPLOYEE BENEFITS PLANS THIS YEAR IT WILL DISCONTINUE ITS DIVIDEND REINVESTMENT AND STOCK REPURCHASE PLAN WHICH OFFERED A 3 DISCOUNT ON MARKET PRICES 9312090109 931209 WHO'S NEWS VOLKSWAGEN NAMES WARRILOW PRESIDENT CEO OF US ARM AUBURN HILLS MICH LANGUISHING VOLKSWAGEN AG NAMED CLIVE B WARRILOW PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS US SALES ARM EFFECTIVE JAN 1 SUCCEEDING JOHN E KERR WHO MUTUALLY AGREED WITH THE GERMAN AUTO MAKER TO RESIGN VOLKSWAGEN WOULDN'T COMMENT ON THE CIRCUMSTANCES SURROUNDING THE DEPARTURE OF MR KERR MR WARRILOW 65 YEARS OLD IS VOLKSWAGEN OF AMERICA INC'S SECOND NEW PRESIDENT AND CEO IN EIGHT MONTHS WILLIAM J YOUNG RESIGNED IN APRIL AMID QUALITY AND PRODUCTAVAILABILITY PROBLEMS VW'S US OPERATIONS REMAINED SHAKY UNDER MR KERR WHO SUCCEEDED MR YOUNG SO FAR THIS YEAR VOLKSWAGEN'S SALES HAVE DROPPED 372 TO 44430 VEHICLES THE AUTO MAKER'S SHARE OF THE US CAR AND TRUCK MARKET IS BARELY 1 VOLKSWAGEN CONTINUES TO EXPERIENCE FINANCIAL TROUBLES IN GERMANY WHICH PUTS HEAVY PRESSURE ON ITS US SALES ARM ANALYSTS SAY THE AUTO MAKER RECENTLY ANNOUNCED A FOURDAY WORKWEEK IN GERMANY IN AN EFFORT TO PREVENT MASSIVE LAYOFFS MR WARRILOW WILL CONTINUE AS PRESIDENT OF VOLKSWAGEN CANADA INC A POSITION HE HAS HELD SINCE 1989 HE JOINED THE COMPANY IN 1963 AS AN ACCOUNTANT FOR VW'S SOUTH AFRICAN OPERATION A VOLKSWAGEN OF AMERICA SPOKESMAN SAID HE COULDN'T COMMENT ON WHETHER THERE WILL BE A SHIFT IN THE AUTO MAKER'S SALES AND MARKETING STRATEGY UNDER THE DIRECTION OF MR WARRILOW 9312090108 931209 LIFECELL PACT WITH MEDTRONIC THE WOODLANDS TEXAS LIFECELL CORP SAID IT AGREED IN PRINCIPLE WITH MEDTRONIC INC TO DEVELOP HEART VALVES USING CERTAIN LIFECELL TECHNOLOGY TERMS WEREN'T DISCLOSED LIFECELL A MEDICAL PRODUCTS CONCERN SAID THE TWO COMPANIES ARE NEGOTIATING A CONTRACT THAT CALLS FOR JOINT DEVELOPMENT AND CLINICAL TRIALS OF PORCINE TISSUE HEART VALVES BASED ON LIFECELL'S TISSUEENGINEERING TECHNOLOGY MEDTRONIC A MEDICAL DEVICE COMPANY IN MINNEAPOLIS WOULD RECEIVE RIGHTS TO COMMERCIAL DISTRIBUTION OF THE PRODUCTS RESULTING FROM THE DEVELOPMENT PROGRAM 9312090107 931209 NOVELL'S NET FELL 1 FOR FISCAL 4TH PERIOD EUROPEAN SALES HURT PROVO UTAH NOVELL INC SAID NET INCOME FOR ITS FOURTH QUARTER ENDED OCT 30 FELL 1 TO 689 MILLION OR 22 CENTS A SHARE NOVELL A NETWORKING SOFTWARE CONCERN WHICH HAS GROWN RAPIDLY OVER THE PAST FEW YEARS SAID FOURTHQUARTER RESULTS WERE CRIMPED BY CONTINUING WEAK SALES IN EUROPE NOVELL MAY ALSO BE FEELING THE EFFECTS OF A BRUISING BATTLE WITH MICROSOFT CORP THE SOFTWARE GIANT NOVELL IS ATTEMPTING TO ASSAULT MICROSOFT'S HEGEMONY IN PERSONALCOMPUTER OPERATING SYSTEMS BY PITTING ITS UNIX OPERATING SYSTEM AGAINST MICROSOFT'S POPULAR WINDOWS OPERATING SYSTEM NOVELL'S REVENUE JUMPED 19 TO 3092 MILLION FROM 2601 MILLION NOVELL EARNED 696 MILLION OR 23 CENTS A SHARE A YEAR EARLIER FOR THE YEAR NOVELL HAD A NET LOSS OF 352 MILLION OR 11 CENTS A SHARE INCLUDING 320 MILLION OF WRITEDOWNS IN THE THIRD QUARTER RELATED TO RESEARCHANDDEVELOPMENT EFFORTS AND CERTAIN ACQUISITIONS REVENUE ROSE 20 TO 112 BILLION FROM 933 MILLION IN THE PRIOR FISCAL YEAR NOVELL EARNED 249 MILLION OR 81 CENTS A SHARE 9312090106 931209 WELLSFORD ACQUIRES 2 PROPERTIES NEW YORK WELLSFORD RESIDENTIAL PROPERTY TRUST SAID IT ACQUIRED TWO MULTIFAMILY PROPERTIES IN THE SUBURBS OF PHOENIX FOR 228 MILLION THE REALESTATE INVESTMENT TRUST OWNS 33 MULTIFAMILY PROPERTIES CONTAINING 9300 UNITS IN THE SOUTHWEST AND ROCKY MOUNTAIN REGIONS WELLSFORD FUNDED THE PURCHASES WITH PROCEEDS FROM A PREFERRED SHARE OFFERING 9312090105 931209 ENTERPRISE FIRMS SEE MORE FRAUD RISK IN MEWA HEALTH COVERAGE RECENT CASE SHOWS VULNERABILITY EVEN THROUGH USE OF LEGITIMATE INSURERS BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL MORE SMALL EMPLOYERS ARE FALLING PREY TO HEALTHINSURANCE FRAUD EVEN WHEN THEY USE LEGITIMATE INSURERS IN BANDING TOGETHER FOR COVERAGE A RECENT CRIMINAL CASE INVOLVING WORLD LIFE & HEALTH INSURANCE CO AT ONE TIME A STATELICENSED INSURER IN KING OF PRUSSIA PA HIGHLIGHTS THAT VULNERABILITY INTERNATIONAL CON ARTISTS USED WORLD LIFE TO BILK MILLIONS OF DOLLARS FROM DOZENS OF SMALL BUSINESSES AND OTHERS AROUND THE COUNTRY ACCORDING TO CRIMINAL CHARGES FILED LAST WEEK BY THE US ATTORNEY IN PHILADELPHIA FEDERAL COURT LAWENFORCEMENT OFFICIALS VIEW THE CASE AS A WORRISOME AND SOPHISTICATED NEW VARIATION OF SOCALLED MEWA FRAUD IN A MEWA OR MULTIPLE EMPLOYER WELFARE ARRANGEMENT NUMEROUS SMALL BUSINESSES PAY INTO A CENTRAL POOL TO PROVIDE THEIR EMPLOYEES WITH HEALTHINSURANCE COVERAGE BY JOINTLY PAYING BILLS AND SHARING THE RISKS SMALL COMPANIES CAN BETTER AFFORD HEALTH BENEFITS MEWAS HAVE BECOME MORE POPULAR AMONG SMALL BUSINESSES IN RECENT YEARS AS HEALTH INSURANCE HAS GOTTEN COSTLIER AND TOUGHER TO OBTAIN THOUGH MANY SUCH BUSINESS ASSOCIATIONS ARE HONEST SOME MEWAS HAVE HAD PROBLEMS RANGING FROM INCOMPETENT ADMINISTRATORS TO OUTRIGHT FRAUD LAWENFORCEMENT OFFICIALS SAY DOZENS OF ALLEGEDLY CROOKED MEWA OPERATORS HAVE BEEN INDICTED ON FEDERAL OR STATE CRIMINAL CHARGES DURING THE PAST THREE YEARS THESE OPERATORS TAKE MONEY FROM SMALL BUSINESSES BUT THEN FAIL TO PAY EMPLOYEES' HEALTH CLAIMS AUTHORITIES SAY REGULATORS ALSO HAVE TRIED TO DISCOURAGE MEWAS THROUGH CIVIL ACTIONS ARGUING THAT ONLY LICENSED INSURANCE COMPANIES WITH GOVERNMENTMANDATED RESERVE FUNDS TO PAY CLAIMS ARE FINANCIALLY SECURE ENOUGH TO SELL INSURANCE THE SCAM INVOLVING WORLD LIFE IS A FRIGHTENING FORM OF MEWA FRAUD BECAUSE SMALL BUSINESSES BELIEVED THEY WERE DEALING WITH A WELLESTABLISHED INSURANCE CARRIER LAWENFORCEMENT OFFICIALS SAY STARTING IN 1989 FOUR MEWAS PURCHASED INSURANCE FROM WORLD LIFE WHICH AT THAT TIME HAD BEEN A LICENSED INSURER IN PENNSYLVANIA FOR ABOUT 30 YEARS BY GOING THROUGH A STATELICENSED INSURER THE MEWAS SEEMED TO SATISFY REGULATORS' WORRIES ABOUT THE UNREGULATED AND SELFFUNDED NATURE OF THESE ASSOCIATIONS BUT WORLD LIFE OFFICIALS THEN TOOK A STEP THAT UNRAVELED THAT SAFETY NET ACCORDING TO LAWENFORCEMENT OFFICIALS WHILE OFFICIALLY REMAINING THE MEWAS' INSURER WORLD LIFE PASSED MOST HEALTHCARE PREMIUMS AND CLAIMSPAYING RESPONSIBILITY ALONG TO A GROUP OF FOREIGN COMPANIES THAT PURPORTED TO BE REINSURERS REINSURANCE IS A COMMON AND OFTEN LEGITIMATE PRACTICE IN WHICH AN INSURANCE COMPANY PASSES ALONG SOME CLAIMSPAYING RISKS TO OTHER INSURERS UNFORTUNATELY AND APPARENTLY UNKNOWINGLY WORLD LIFE OFFICIALS TIED UP WITH SOMEONE WHOM LAWENFORCEMENT AUTHORITIES NOW DESCRIBE AS ONE OF THE BIGGEST INSURANCE FRAUDS IN RECENT TIMES A MAN NAMED ALAN TEALE THE FOREIGN REINSURERS WERE IN FACT SHELL COMPANIES CREATED BY MR TEALE AND OTHERS TO DEFRAUD POLICYHOLDERS ACCORDING TO THE CRIMINAL CHARGES FILED LAST WEEK AGAINST MR TEALE AND HIS WIFE CHARLOTTE RENTZ MS RENTZ WAS NAMED AS A COCONSPIRATOR IN CONNECTION WITH THAT CASE AND AN INDICTMENT EARLIER THIS YEAR BY A FEDERAL GRAND JURY IN MOBILE ALA MR TEALE AND MS RENTZ LAST WEEK PLEADED GUILTY TO FRAUD AND RACKETEERING CHARGES MR TEALE WAS SENTENCED TO 17 YEARS IN PRISON HIS WIFE RECEIVED A 13YEAR PRISON TERM THE FEDERAL COURT ALSO ORDERED THEM TO PAY 50 MILLION IN RESTITUTION FOR THEIR VARIOUS INSURANCE SCAMS THAT HAVE VICTIMIZED PEOPLE RANGING FROM ENTREPRENEURS TO STAR ATHLETES PENNSYLVANIA INSURANCE REGULATORS DECLARED WORLD LIFE INSOLVENT AND CLOSED IT IN MID1991 FORMER COMPANY OFFICIALS HAVE DENIED ANY WRONGDOING IN THEIR DEALINGS WITH MR TEALE AND NO CHARGES HAVE BEEN FILED AGAINST THEM LAWENFORCEMENT OFFICIALS SAY OTHER FRAUDULENT OPERATORS CONTINUE TO TAKE ADVANTAGE OF THE MEWA FORMAT IN THE PAST THREE OR FOUR YEARS THE ALAN TEALES OF THE COUNTRY HAVE ESTABLISHED HUNDREDS OF MOSTLY OFFSHORE INSURANCE COMPANIES BACKED BY WORTHLESS ASSETS SAYS ROBERT MCKEE THE SPECIAL AGENT IN CHARGE OF THE DEPARTMENT OF LABOR'S OFFICE OF LABOR RACKETEERING IN PHILADELPHIA WHICH HELPED TO PROSECUTE MR TEALE AND HIS WIFE THESE BOGUS INSURANCE COMPANIES OFTEN OFFER INSURANCE AND REINSURANCE TO MEWAS MR MCKEE ADDS MANY COUNTRIES REGULATE THE INSURANCE INDUSTRY FAR MORE LOOSELY THAN THE US SAYS HERB CLARK CHIEF OF STAFF OF THE FLORIDA DEPARTMENT OF INSURANCE FEDERAL AUTHORITIES BROKE UP A MAJOR OFFSHORE SCAM LAST YEAR WITH THE FRAUD INDICTMENTS IN PHILADELPHIA FEDERAL COURT AND SUBSEQUENT GUILTY PLEAS OF FIVE MEN CONNECTED WITH CABOT DAY INSURANCE CO THREE CURRENTLY ARE SERVING PRISON TERMS THE OTHER TWO MEN ARE AWAITING SENTENCING CABOT DAY WHICH NOW IS DEFUNCT OPERATED OUT OF DENVER BUT WAS CHARTERED IN THE BRITISH VIRGIN ISLANDS IT AND A RELATED ENTITY SOLD INSURANCE AND REINSURANCE TO SEVERAL MEWAS AROUND THE US AND LEFT 3500 INDIVIDUALS WITH MORE THAN 57 MILLION IN UNPAID MEDICAL BILLS FEDERAL OFFICIALS SAY ALEXVALE FURNITURE INC OF TAYLORSVILLE NC WAS ONE OF THE MANY SMALL COMPANIES LEFT WITH UNPAID HEALTHINSURANCE CLAIMS BY CABOT DAY BUT UNLIKE MOST VICTIMIZED BUSINESSES ALEXVALE MANAGED TO GET THOSE CLAIMS PAID BY PURSUING THE LIABILITY INSURANCE OF THE BROKER WHO HAD SOLD THE MEWA POLICY THE EFFORT CONSUMED ABOUT TWO YEARS AND HUNDREDS OF HOURS OF WORK SAYS EN BATEMAN VICE PRESIDENT OF HUMAN RESOURCES FOR THE CLOSELY HELD FURNITURE MAKER IT WAS A BIG DIVERSION OF CORPORATE RESOURCES THAT TOOK TIME AND MONEY AWAY FROM TRYING TO IMPROVE HEALTH BENEFITS AT THE 600EMPLOYEE CONCERN MR BATEMAN ADDS REGULATORS URGE SMALL BUSINESSES TO TAKE SOME BASIC PRECAUTIONARY STEPS BEFORE BUYING HEALTH INSURANCE FOR EMPLOYEES FOR INSTANCE THEY SHOULD VERIFY THAT THE INSURER IS LICENSED IN THEIR STATE SAYS FLORIDA'S MR CLARK REGULATORS SAY SMALL BUSINESSES ALSO SHOULD FIND OUT IF ANY OF THEIR INSURANCE COVERAGE WILL BE PASSED ALONG TO REINSURERS AN EMPLOYER SHOULD REQUEST A REINSURER'S FINANCIAL STATEMENTS AND DETERMINE WHAT ASSETS IT HAS TO PAY OFF CLAIMS IN THE WORLD LIFE CASE FEDERAL LAWENFORCEMENT OFFICIALS SAY THE BOGUS FOREIGN REINSURERS EXAGGERATED THEIR ASSETS WHICH INCLUDED VASTLY OVERVALUED PENNY STOCKS AND WORTHLESS TREASURY BILLS ISSUED BY AN INDIAN TRIBE OPERATING OUT OF A DALLAS OFFICE BUILDING 9312090104 931209 FINANCING BUSINESS TELEPHONE & DATA SYSTEMS INC TELEPHONE & DATA SYSTEMS INC CHICAGO SAID ITS AMERICAN PAGING INC UNIT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 35 MILLION NEWLY ISSUED COMMON SHARES REPRESENTING A 175 STAKE THE TELECOMMUNICATIONS COMPANY CALLED API A PROVIDER OF ONEWAY WIRELESS MESSAGING SERVICES WITH OPERATIONS CONCENTRATED IN FLORIDA THE MIDWEST AND MIDATLANTIC REGIONS AS OF SEPT 30 IT PROVIDED SERVICE TO 432000 PAGERS THE COMPANY ESTIMATED THE IPO PRICE WILL BE BETWEEN 12 AND 14 A SHARE UNDERWRITERS WILL BE GRANTED AN OVERALLOTMENT OPTION FOR AS MUCH AS 525000 ADDITIONAL SHARES PROCEEDS WILL BE USED TO REPAY ABOUT 42 MILLION OF DEBT TO TDS WITH REMAINING NET PROCEEDS USED FOR GENERAL CORPORATE PURPOSES THE OFFERING WILL BE MANAGED BY GOLDMAN SACHS & CO MERRILL LYNCH & CO AND SALOMON BROTHERS INC 9312090103 931209 SEVERAL AIRLINES EXTEND CHRISTMAS FARE DISCOUNTS CHICAGO SEVERAL BIG AIRLINES EXTENDED THE CHRISTMAS HOLIDAY PROMOTION LAUNCHED LAST WEEK OFFERING AIRFARE DISCOUNTS OF AS MUCH AS 30 TRANS WORLD AIRLINES AND UAL CORP'S UNITED AIRLINES ARE NOW OFFERING THE LOWER FARES UNTIL DEC 15 FOR TRAVEL BETWEEN DEC 13 AND JAN 5 PREVIOUSLY THE NATION'S MAJOR CARRIERS HAD SET AN EXPIRATION DATE OF FRIDAY THE PROMOTION WHICH WAS INITIATED BY NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC REQUIRES A SATURDAYNIGHT STAY 9312090102 931209 POLITICS & POLICY IN GLOBAL TRADE DRAMA MOVIE MAN JACK VALENTI STARS AS CHIEF DEFENDER OF HOLLYWOOD'S HONOR BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S THE PITCH WE CALL THE MOVIE BREAKDOWN IN GENEVA THE WORLD ECONOMY IS IN THE TANK BIG SHOTS FROM AROUND THE WORLD ARE SITTING AROUND A TABLE TRYING TO CUT A TRADE DEAL BIGGEST DEAL EVER THEN THIS LITTLE TOUGH GUY FROM HOLLYWOOD STANDS UP AND SAYS THERE'S NO DEAL WITHOUT ME FELLAS' AND WALKS OUT THE US GOVERNMENT TYPES FOLLOW HIM OUT THE DOOR YEAH THERE'S NO DEAL WITHOUT HOLLYWOOD THEY SAY IT'S GOT MONEY IT'S GOT DRAMA AND IT'S GOT THE ALPS WASHINGTON THAT MELODRAMA MAY NOT MAKE IT TO YOUR LOCAL THEATER BUT IT JUST MIGHT PLAY OUT SOON AT GLOBAL TRADE TALKS IN GENEVA THE STAR JACK VALENTI PRESIDENT OF THE MOTION PICTURE ASSOCIATION OF AMERICA MR VALENTI PERHAPS WASHINGTON'S PREMIER LOBBYIST SAYS HE HAS ALREADY EXTRACTED A PLEDGE FROM PRESIDENT CLINTON THAT THE US WON'T SIGN A TRADE PACT IN WHICH HOLLYWOOD IS TREATED SHABBILY AND US TRADE REPRESENTATIVE MICKEY KANTOR SAYS HE'LL MAKE GOOD ON THAT PROMISE EUROPEAN QUOTAS AND LEVIES ON US FILMS ARE DEALBREAKERS MR KANTOR SAYS EITHER THEY GO OR AT LEAST GET MODIFIED OR THE US WON'T SIGN ON TO THE GLOBAL TRADE PACT BEING NEGOTIATED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR VALENTI'S ABILITY TO GET HOLLYWOOD'S AGENDA PLACED AT THE VERY CENTER OF US TRADE POLICY IS A TESTAMENT TO HIS TENACITY AND TO THE MOVIE INDUSTRY'S CACHET AND CASH JUST THIS PAST WEEKEND MR CLINTON ATTENDED A FUNDRAISER AT THE OFFICE OF AGENT MICHAEL OVITZ AND THEN A 25000ACOUPLE DINNER HOSTED BY MARVIN DAVIS FORMER OWNER OF TWENTIETH CENTURY FOX TOTAL HAUL FOR THE DEMOCRATIC PARTY 2 MILLION THESE GUYS ARE VERY POWERFUL SAYS HARRY FREEMAN WHO HEADS AN INDUSTRY GROUP THAT SUPPORTS GATT HOLLYWOOD HAS A LEGITIMATE GRIPE WITH EUROPE ESPECIALLY FRANCE WHICH REQUIRES THAT 60 OF PROGRAMMING SHOWN ON FRENCH TELEVISION BE MADE IN THE EUROPEAN COMMUNITY TRADE EXPERTS SAY BUT EVEN WITH THE RESTRICTIONS THE MOVIE AND VIDEO INDUSTRY GARNERS 44 BILLION IN SALES TO WESTERN EUROPE IT'S RIDICULOUS TO MAKE HOLLYWOOD A MAKEORBREAK ISSUE SAYS GARY HUFBAUER A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK BECAUSE A WHOLE RANGE OF US INDUSTRIES WOULD LOSE IF THE GATT TALKS FAIL NEVERTHELESS MR VALENTI A 72YEAROLD BANTAMWEIGHT KNOWN FOR HIS ORATORICAL FLOURISHES HAS MADE THE MOVIE INDUSTRY THE STAR OF THE GLOBAL TRADE DRAMA THE FORMER AIDE TO LYNDON JOHNSON WHO HAS WON A STRING OF HIGHPROFILE VICTORIES OVER THE BROADCAST INDUSTRY ON THE ISSUE OF SYNDICATING TELEVISION SHOWS HAS SOMEHOW MANAGED TO PRESERVE HOLLYWOOD'S IMAGE AS A HOMETOWN INDUSTRY EVEN THOUGH SEVERAL MAJOR STUDIOS HAVE BEEN ACQUIRED BY JAPANESE COMPANIES NOW GATT IS HIS TOP PRIORITY THIS IS SO CRUCIAL SO INDISPENSABLE FOR OUR FUTURE MR VALENTI SAYS OF THE TRADE SPAT DURING THE PRESIDENTIAL RACE HOLLYWOOD KICKED IN 254000 TO THE CLINTON CAMPAIGN AND 17 MILLION TO THE DEMOCRATIC PARTY IN SOCALLED SOFT MONEY CONTRIBUTIONS USED FOR GETOUTTHEVOTE DRIVES AND OTHER PARTYBUILDING EFFORTS THAT AREN'T LIMITED BY FEDERAL ELECTION LAWS AT THE SAME TIME THE SUPPORT OF BARBRA STREISAND RICHARD DREYFUS AND OTHER MOVIE STARS GAVE THE CLINTON CAMPAIGN AN AURA OF KENNEDYSTYLE GLAMOUR WITH MR CLINTON IN OFFICE MR VALENTI MOVED TO BUILD ON THIS GOODWILL IN OCTOBER HE ARRANGED FOR A CONTINGENT OF MOVIE MOGULS ACTORS AND SCREEN WRITERS TO MEET WITH THE PRESIDENT FOR AN HOUR THERE MR VALENTI PRESSED HIS GATT CONCERNS AND HE SAYS HE CAME AWAY WITH A PLEDGE THAT AUDIOVISUAL WOULDN'T BE SINGLED OUT FOR UNACCEPTABLE RESTRICTIONS MR VALENTI QUICKLY CALLED REPORTERS TO MAKE IT KNOWN THAT THE PRESIDENT IS PUBLICLY SUPPORTING US AT THE SAME TIME HE WAS WORKING CAPITOL HILL IN MAY MAJORITY LEADER RICHARD GEPHARDT D MO INTRODUCED A RESOLUTION URGING THE US TRADE REPRESENTATIVE TO INSIST THAT THE GATT NEGOTIATIONS TAKE CARE OF THE MOVIE INDUSTRY AND OTHERS WITH COPYRIGHT PROBLEMS AT LEAST 233 LAWMAKERS HAVE SIGNED ON TO THE RESOLUTION THE ADMINISTRATION KNOWS CONGRESS WILL HOLD ITS FEET TO THE FIRE SAYS FORMER US TRADE REPRESENTATIVE ROBERT STRAUSS MR VALENTI ALSO FOUND A READY ALLY IN MR KANTOR THE CURRENT US TRADE REPRESENTATIVE WHO WAS THE CLINTON CAMPAIGN CHAIRMAN AND HAILS FROM LOS ANGELES WITH CALIFORNIA REELING FROM DEFENSE CUTS FALLING REALESTATE PRICES AND OTHER ECONOMIC BAD NEWS MR KANTOR IMMEDIATELY UNDERSTOOD THE IMPORTANCE OF BUCKING UP MOVIE STUDIOS THAT'S THE FASTESTGROWING EMPLOYER IN SOUTHERN CALIFORNIA SAYS MR KANTOR WHEN CALIFORNIA IS VERY IMPORTANT TO THIS ADMINISTRATION JETTING TO BRUSSELS LAST WEEK TO NEGOTIATE WITH THE EC OVER MOVIES AND OTHER ISSUES MR KANTOR AND HIS AIDE CHUCKLED OVER A VALENTI LETTER CAJOLING THEM TO GREATER EFFORTS OVER THE WEEKEND MR VALENTI SENT TWO AIDES TO GENEVA TO WORK WITH US TRADE OFFICIALS ON A COMMON POSITION THE DEAL THE US WOULDN'T PRESS THE EC TO DROP ITS QUOTAS ON EXISTING BROADCAST CHANNELS SO LONG AS THE EC DIDN'T APPLY QUOTAS TO SUCH NEW TECHNOLOGIES AS SATELLITE TELEVISION OR CABLE CHANNELS THE EC CAN HOLD ON TO EXISTING MEDIA SO LONG AS THEY OPEN UP NEW ONES SAYS BOWMAN CUTTER A SENIOR CLINTON ECONOMIC OFFICIAL THE US ALSO WANTS CHANGES IN THE EC'S FILM SUBSIDIES WHICH ARE PAID FOR IN GOOD MEASURE BY LEVIES ON US MOVIES BUT MR VALENTI MAY HAVE MET HIS NEGOTIATING MATCH IN FRANCE A COUNTRY WHOSE ELITE PRIDES ITSELF ON BEING THE INTELLECTUAL SOUL OF EUROPE BUT WHOSE MASSES PREFER HOLLYWOOD EXTRAVAGANZAS IN TRADE NEGOTIATIONS THE EC IS SUPPOSED TO NEGOTIATE FOR ALL ITS MEMBER NATIONS BUT FRANCE BY BEING OBDURATE OFTEN PULLS THE EC TO ITS POSITION ON TUESDAY FOR INSTANCE THE US AGREED TO REWRITE A USEC FARM DEAL WHICH THE US INSISTED IT NEVER WOULD REWRITE BECAUSE OF FRENCH INTRANSIGENCE THERE'S NO TRADE ISSUE THAT FRANCE CARES MORE ABOUT THAN THE MOVIES WHAT IS AT STAKE AND THEREFORE AT RISK IN THE CURRENT NEGOTIATIONS IS THE RIGHT OF EVERY COUNTRY TO CREATE ITS OWN IMAGES FRENCH PRESIDENT FRANCOIS MITTERRAND SAID IN OCTOBER A SOCIETY WHICH ABANDONS THE MEANS OF DEPICTING ITSELF WOULD SOON BE AN ENSLAVED SOCIETY SO AFTER NEARLY 23 STRAIGHT HOURS OF NEGOTIATING EARLY THIS WEEK IN BRUSSELS THE EC REJECTED THE US PROPOSAL TO THIS MOMENT THERE ISN'T ONE CENTIMETER ONE MILLIMETER OF GIVE ON THE PART OF THE FRENCH SAYS MR VALENTI MR KANTOR CALLED IT QUITS ON THE BRUSSELS MEETING NOW THE US AND EC ARE LOOKING FOR WAYS AROUND THE PROBLEM MR KANTOR TALKED WITH MR VALENTI BY TELEPHONE YESTERDAY TO DISCUSS POSSIBLE SOLUTIONS BUT FRENCH FOREIGN MINISTER ALAIN JUPPE WARNS AMERICAN CLAIMS ARE UNACCEPTABLE FOR THE EC ALAN DONNELLY A MEMBER OF THE EUROPEAN PARLIAMENT WAS IN WASHINGTON YESTERDAY PEDDLING ONE IDEA A ONEYEAR MORATORIUM ON EXTENDING BROADCAST QUOTAS WHILE THE US AND EC CONTINUE NEGOTIATIONS HE SAYS MR VALENTI HEARD HIM OUT ON THE PROPOSAL BUT WAS NONCOMMITTAL US MOVIE INDUSTRY OFFICIALS SAY THEY'RE NOT INTERESTED IN THE MORATORIUM BECAUSE THEY WOULD LOSE LEVERAGE THEY NOW HAVE WITH A GATT DEAL HINGING ON THE MOVIES THIS LEAVES MR DONNELLY TO WONDER OUT LOUD DO YOU THINK JACK VALENTI WILL RELENT 9312090101 931209 LETTERS TO THE EDITOR HE MUST THINK WE'RE A BUNCH OF AIRHEADS WE HERE AT EPA'S OFFICE OF ENFORCEMENT AIR DIVISION GOT A GOOD LAUGH OUT OF THE ARTICLE ON HOW BEST TO SOLVE OUR AIR POLLUTION PROBLEMS EPA'S LATEST MANDATE EVERYONE INTO THE CARPOOL BY DAVID ANDREW PRICE EDITORIAL PAGE NOV 8 TO THINK THAT EPA COULD ENFORCE RULES TO CONTROL EPISODIC EMISSIONS LIKE TELLING PEOPLE NOT TO USE THEIR MOTORBOATS OR LAWN MOWERS ON HOT SMOGGY DAYS IS A JOKE YOUR AUTHOR HAS NOT THOUGHT IT THROUGH IN HIS HASTE TO APPEASE HIS CORPORATE CLIENTS WHO MIGHT BE INCONVENIENCED BY CARPOOLING AND OTHER OPTIONS FOR COMPLIANCE IT IS HARD ENOUGH TO ENFORCE CARPOOLING/MASS TRANSIT RULES BUT LAWN MOWERS THINK ABOUT IT WE DON'T KNOW FOR SURE THAT TODAY'S AIR POLLUTION IS GOING TO BE IN VIOLATION OF THE STANDARD AND THUS REQUIRE EPISODIC CONTROLS UNTIL AFTER IT IS TOO LATE TO WARN EVERYONE NOT TO USE LAWN MOWERS AND MOTORBOATS AND IF HE/YOU ARE SUGGESTING THAT WE PRESUME THAT TOMORROW IS GOING TO BE BAD WE ONLY HAVE A FEW HOURS TO GET THAT INFORMATION OUT TO THE PUBLIC MOST PEOPLE ARE NOT NEWS HOUNDS LIKE READERS OF THE JOURNAL SO THERE WILL BE A LARGE POPULATION THAT NEVER GETS THE WORD PERHAPS WE SHOULD PRESUME THAT THE NEXT WEEK OR MONTH IS GOING TO BE BAD AND SAY NO LAWN MOWING OR MOTORBOATING FOR THE NEXT WEEK OR MONTH DO YOU KNOW HOW MANY SCOFFLAWS WOULD BE OUT ON THE WATER DO YOU KNOW HOW MANY ADDITIONAL COMPLIANCE INSPECTORS WE WOULD HAVE TO HIRE SOMETHING WE FEEL SURE YOU WOULD OBJECT TO IN ORDER TO CHASE DOWN EVEN HALF OF THESE SCOFFLAWS AND WITH WHAT BUDGET INCREASE DO WE HIRE THEM ALL LARGE BUSINESSES IN THE SMOGGIEST CITIES OF THE COUNTRY HAVE A NUMBER OF OPTIONS NOT JUST CARPOOLING EG TRANSIT SUBSIDIES AND OTHER OPTIONS THAT WERE MENTIONED IN THE ARTICLE TO REDUCE EMISSIONS FROM ONLY A PORTION OF THEIR COMMUTERS SO THE HEADLINE EVERYONE INTO THE CARPOOL WAS AN EXAGGERATION SOMETHING THAT IS TYPICAL OF THOSE WHO LIKE TO TAKE CHEAP SHOTS AT ENVIRONMENTAL CLEANUP EFFORTS 9312090100 931209 WORLD MARKETS TOKYO STOCKS SINK ON GOVERNMENT INSTABILITY BUT EUROPEAN BOURSES RALLY SOME TO NEW HIGHS A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES PLUMMETED 23 WEDNESDAY IN TOKYO ON GROWING CONCERN THAT JAPAN'S GOVERNING COALITION COULD COLLAPSE JEOPARDIZING EFFORTS TO RESCUE THE ECONOMY BUT SHARES RALLIED 12 IN LONDON 15 IN FRANKFURT AND 21 IN MEXICO CITY EACH TO A NEW CLOSING HIGH AND JUMPED 13 IN PARIS ALL FUELED BY DOMESTIC FACTORS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10903 DOWN 069 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 20682 UP 889 OR 45 WITH KUMPULAN GUTHRIE OF MALAYSIA POSTING A 19 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 6602 DOWN 347 OR 5 WITH NICHIRO OF JAPAN SLIDING 68 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 6311 POINTS TUESDAY SANK 39554 TO 1650795 ON THURSDAY IN TOKYO THE NIKKEI INDEX ROSE 30623 POINTS TO CLOSE THE MORNING SESSION AT 1681418 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 270 MILLION SHARES UP FROM 2176 MILLION SHARES A DAY EARLIER LOSERS FAR OUTNUMBERED GAINERS 831190 AND ALMOST ALL SECTORS WERE LOWER EXCEPT FOR MAKERS OF SEMICONDUCTOR MANUFACTURING EQUIPMENT ON A STRONG EARNINGS OUTLOOK THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 675 POINTS TUESDAY TUMBLED 2407 OR 17 TO 139654 THE MARKET WAS SPOOKED BY SIGNS THAT THE SOCIALIST PARTY THE LARGEST PARTY IN JAPAN'S RULING COALITION MIGHT NOT SUPPORT PRIME MINISTER MORIHIRO HOSOKAWA'S INITIATIVE TO ACCEPT SOME RICE IMPORTS IN A COMPROMISE TO HELP CONCLUDE GLOBAL TRADELIBERALIZATION NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE SOCIALISTS' OPPOSITION TO THE MARKETOPENING PLAN RAISED DOUBTS ABOUT THE STABILITY OF THE COALITION GOVERNMENT AND IN TURN ITS ABILITY TO PRODUCE ACTION SOON TO ADDRESS JAPAN'S RECESSION ALSO THE GOVERNMENT'S POPULARITY IN OPINION POLLS PLUNGED THE NIKKEI HAS LOST MOST OF LAST WEEK'S GAINS THAT BUILT UP ON SIGNS THE GOVERNMENT WOULD MOVE QUICKLY TO BOOST THE ECONOMY THE TOKYO MARKET WASN'T AFFECTED BY A LATEAFTERNOON NEWS REPORT THAT FINANCE MINISTER HIROHISA FUJII SAID THE GOVERNMENT WOULD CONSIDER A NEW INJECTION OF PUBLIC FUNDS INTO INVESTMENT TRUSTS AIMED AT THE STOCK MARKET DEEP AS THEIR TUMBLE WAS TOKYO STOCKS HAD SUNK EVEN LOWER WEDNESDAY BUT WERE PULLED UP BY A LATE RALLY WHEN A TRADING HOUSE TRIED TO COVER A LARGE NUMBER OF MARCH NIKKEI FUTURES POSITIONS BUT MISTAKENLY BOUGHT DECEMBER POSITIONS THEN SCRAMBLED TO BUY BACK MARCH FUTURES WHICH HELPED SPUR A FRENZIED ROUND OF SHORT COVERING OR BUYING TO REPLACE BORROWED STOCK THAT HAD BEEN SOLD EARLIER THAT LED THE NIKKEI TO REGAIN MORE THAN 300 POINTS IN THE FINAL HALFHOUR OF TRADING THE LATE SURGE ALSO WAS A RESULT PARTLY OF A LATE NEWS REPORT THAT TWO CONSERVATIVE PARTIES IN THE COALITION WILL PROPOSE LAND PURCHASES TO SHORE UP PROPERTY PRICES BENEFITING BANKS THAT HAVE HUGE NONPERFORMING LOANS TIED UP IN REAL ESTATE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SOARED 401 POINTS TO A RECORD 32774 NEAR THE INTRADAY PEAK OF 32795 THE FT 30STOCK INDEX ADVANCED 246 POINTS OR 1 TO 24544 VOLUME ROSE SHARPLY TO 8212 MILLION SHARES FROM 6897 MILLION SHARES A DAY EARLIER THE RALLY FOLLOWED UNEXPECTEDLY STRONG ACTION FOR BRITISH GOVERNMENT BONDS OR GILTS A BANK OF ENGLAND AUCTION OF 3 BILLION 448 BILLION IN GILTS WAS 219 TIMES OVERSUBSCRIBED FAR GREATER THAN MARKET EXPECTATIONS THE STRONG RECEPTION WHICH RESULTS IN YIELDS DECLINING IN THE GILTS MARKET MADE STOCK DIVIDEND YIELDS MORE ATTRACTIVE AND THUS SHARES RELATIVELY INEXPENSIVE INVESTORS RECENTLY HAVE BEEN FOCUSING LESS ON CORPORATE STATEMENTS WHICH HAVE BEEN CAUTIOUSLY OPTIMISTIC AND MORE ON BUYING STOCKS WITH GOOD DIVIDEND YIELDS THE GILT AUCTION ALSO REVITALIZED MARKET SPECULATION ABOUT A BRITISH LENDINGRATE REDUCTION STRONG GILTS INDICATE LITTLE INFLATION GIVING THE CENTRAL BANK MORE ROOM TO EASE MONETARY POLICY THE STOCK MARKET ALSO GOT A BOOST FROM ROBUST FUTURES TRADING IN FRANKFURT FOLLOWING TWO DAYS OF CONSOLIDATION AND PROFITTAKING THE DAX 30STOCK INDEX RALLIED 3267 POINTS OR 15 TO A RECORD 214813 TOPPING THE HIGH SET ONLY LAST FRIDAY THE DAX ALSO MARKED A RECORD INTRADAY HIGH OF 215029 BANKING AND MANUFACTURING SHARES MADE STRIKING GAINS IN PARIS EQUITIES SURGED 13 ON OPTIMISM ABOUT A GATT DEAL AS WELL AS A REMARKABLE STRENGTHENING BY THE FRENCH FRANC IN CURRENCY DEALINGS THOUGH GATT NEGOTIATIONS DIDN'T PRODUCE ANY FRESH DEVELOPMENTS THE MARKET WAS ENCOURAGED BY NEGOTIATORS' COMMENTS THAT LIFTED HOPES THE US AND EUROPEAN COMMUNITY WILL CEMENT AN ACCORD BY A DEADLINE NEXT WEDNESDAY THE RALLY ALSO WAS FUELED BY STRENGTH IN THE INDEX FUTURES AND BOND MARKETS IN MEXICO CITY AFTER PAUSING TUESDAY FOR PROFITTAKING STOCKS JUMPED 21 TO A RECORD CLOSE RESUMING WHAT HAS BEEN A SEEMINGLY UNSTOPPABLE RALLY SINCE PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT WITH THE US AND CANADA PRICES ALSO WERE BUOYED BY A SHARP DROP IN PRIMARY MONEYMARKET RATES IN SYDNEY STRONG BUYING OF NATURAL RESOURCES AND MINING STOCKS FOLLOWING A RISE IN BASEMETAL PRICES HELPED PUSH SHARE PRICES UP ACROSS THE BOARD AND THE BENCHMARK INDEX SCORED A 11 GAIN IN HONG KONG SHARES ROSE TO POST A SECOND STRAIGHT RECORD HIGH THOUGH DEALINGS WERE SUBDUED MOSTLY DRIFTING BUT HIGHLIGHTED BY INITIAL GAINS ERASED BY PROFITTAKING AND PURCHASES REEMERGING TO RECOUP THE LOSSES IN SEOUL PRICES SURGED 16 LED BY SMALL ISSUES WITH HIGH ASSET VALUES PER SHARE ON RENEWED EXPECTATIONS SOUTH KOREA WILL ABOLISH THE 10 LIMIT ON A SINGLE MAJOR SHAREHOLDER IN EACH COMPANY THIS OWNERSHIP CHANGE COULD SPARK A WAVE OF MERGERS AND ACQUISITIONS TARGETED AT THESE SOCALLED ASSET ISSUES BLUE CHIPS ALSO SOARED IN A BANDWAGON EFFECT IN SINGAPORE PROFITTAKING LEFT STOCKS SLIGHTLY LOWER AFTER STRONG GAINS IN THE PREVIOUS SESSION IN MANILA THE RECENT BULL RUN CONTINUED AS EQUITIES CLIMBED AMONG CORPORATE DEVELOPMENTS IN LONDON HANSON RALLIED 6 PENCE OR 23 TO 2665 PENCE 398 THE ANGLOAMERICAN INDUSTRIAL CONGLOMERATE'S COALMINING OPERATIONS AND OTHER COAL OPERATORS TENTATIVELY AGREED WITH A US MINING UNION ON A LABOR CONTRACT TO END A SEVENMONTH STRIKE 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 9312090099 931209 BUSINESS BRIEF SNET SETS CHARGE IN THE FOURTH QUARTER TOTALING 259 MILLION NEW HAVEN CONN SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP SAID IT WILL TAKE A 259 MILLION OR 408 A SHARE CHARGE IN THE FOURTH QUARTER THE COMPANY SAID 204 MILLION OF THE CHARGE INCLUDES COSTS TO REDUCE THE WORK FORCE ABOUT 2500 OVER THE NEXT TWO YEARS INCLUDING AS MANY AS 1500 LAYOFFS STARTING IN JANUARY THE CHARGE ALSO INCLUDES ABOUT 45 MILLION OR 71 CENTS A SHARE FOR PLANNED REFINANCINGS ANNOUNCED IN OCTOBER THE EXPECTED 1993 REFINANCINGS SHOULD REDUCE ANNUAL INTEREST COSTS 6 MILLION TO 8 MILLION THE COMPANY ALSO SAID PRESIDENT DANIEL J MIGLIO 53 YEARS OLD WAS NAMED CHAIRMAN EFFECTIVE JAN 1 SUCCEEDING WALTER H MONTEITH 63 WHO WILL RETIRE JAN 1 MR MIGLIO CONTINUES AS CHIEF EXECUTIVE AND THE TELECOMMUNICATIONS COMPANY SAID IT FORMED A NEW OFFICE OF THE PRESIDENT THAT WILL INCLUDE MR MIGLIO DONALD R SHASSIAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER RONALD M SERRANO SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT AND ROBERT F NEAL SENIOR VICE PRESIDENTORGANIZATION DEVELOPMENT FOR THE 1992 FOURTH QUARTER SOUTHERN NEW ENGLAND POSTED NET INCOME OF 40 MILLION OR 64 CENTS A SHARE ON REVENUE OF 4059 MILLION FOR THE LATEST NINE MONTHS IT HAD A NET LOSS OF 941 MILLION OR 148 A SHARE INCLUDING AN ACCOUNTING CHARGE OF 2202 MILLION OR 347 CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SOUTHERN NEW ENGLAND CLOSED AT 3575 A SHARE DOWN 75 CENTS 9312090097 931209 NEW YORK COTTON EXCHANGE AGREES TO ACQUIRE NYFE NEW YORK THE NEW YORK COTTON EXCHANGE SAID IT AGREED TO ACQUIRE THE NEW YORK FUTURES EXCHANGE OR NYFE A SMALL FUTURESTRADING UNIT OF THE NEW YORK STOCK EXCHANGE THE PURCHASE PRICE WHICH INVOLVED A CASH PAYMENT BY THE COTTON EXCHANGE WASN'T DISCLOSED THE ACQUISITION WILL HAVE LITTLE IMPACT ON NYFE FLOOR TRADERS WHO ALREADY SHARE TRADINGFLOOR SPACE WITH COTTON EXCHANGE TRADERS AMONG OTHER THINGS THE NYFE TRADES A SMALL STOCKINDEX FUTURES CONTRACT PAUL TUDOR JONES CHAIRMAN OF THE COTTON EXCHANGE SAID THE ACQUISITION WAS PART OF THE EXCHANGE'S EFFORT TO ACHIEVE A BROADLY DIVERSIFIED PRODUCT MIX WHICH NOW INCLUDES STOCK UTILITY AND COMMODITY INDICES IN ADDITION TO FUTURES CONTRACTS BASED ON AGRICULTURAL PRODUCTS INTEREST RATES AND CURRENCIES 9312090096 931209 GM IS SAID TO BE NEAR PACT TO BUILD CARS IN POLAND DETROIT GENERAL MOTORS CORP EXPANDING ITS PUSH INTO EASTERN EUROPE IS SAID TO BE CLOSE TO SIGNING A DEAL TO ASSEMBLE AS MANY AS 30000 CARS A YEAR IN POLAND ALSO GM SAID IT IS STUDYING WHETHER TO BUILD AUTO PARTS IN THAT COUNTRY WHILE THE TWO INITIATIVES REPRESENT RELATIVELY SMALL INVESTMENTS FOR THE AUTO MAKER THEY PROVIDE POLAND WITH A BIGNAME VOTE OF CONFIDENCE IN ITS EFFORTS TO OPEN THE COUNTRY'S ECONOMY GM OFFICIALS IN TURN HOPE THEIR GESTURE WILL HELP TO SELL MORE CARS IN A MARKET WITH LARGE GROWTH POTENTIAL GM OFFICIALS HOPE TO CLOSE A DEAL THIS MONTH TO ASSEMBLE ASTRA MODELS IN A JOINT VENTURE WITH THE STATEOWNED POLISH AUTO MAKER FSO WHOSE FORMAL NAME IS FABRYKA SAMOCHODOW OSOBOWYCH THE TENTATIVE AGREEMENT CALLS FOR GM TO INVEST ABOUT 25 MILLION TO CONVERT PART OF AN FSO PLANT NEAR WARSAW FOR FINAL ASSEMBLY OF PAINTED BODIES PRODUCED IN THE WEST ACCORDING TO POLAND'S MINISTRY OF INDUSTRY A CONTRACT IS READY TO BE SIGNED AS EARLY AS MONDAY GM AND FSO HAVE BEEN IN DISCUSSIONS FOR MORE THAN TWO YEARS OVER THIS PROJECT AND HAVE SEVERAL TIMES SIGNALED IMMINENT CONTRACT SIGNINGS ONLY TO HAVE THE DEAL RUN INTO COMPLICATIONS ORIGINALLY DISCUSSED AS A 75 MILLION INVESTMENT FOR THE GM PURCHASE OF FSO ASSETS DEAL TERMS HAVE BEEN PROGRESSIVELY SCALED BACK TO THE CURRENT 25 MILLION 9312090095 931209 ECONOMY FASB MAY SEEK TO EXPAND DISCLOSURE ON DERIVATIVES NEW YORK THE FINANCIAL ACCOUNTING STANDARDS BOARD VOTED TO CONSIDER FORCING BANKS AND OTHER COMPANIES TO DISCLOSE MORE INFORMATION ABOUT THE RISKS OF THEIR INVESTMENTS IN DERIVATIVE SECURITIES THE FASB THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS ADDED THE PROJECT ON DERIVATIVES SUCH AS OPTIONS AND INTERESTRATE SWAPS TO ITS AGENDA YESTERDAY THE FASB HOPES TO ISSUE A PROPOSAL IN THE FIRST QUARTER OF 1994 AND A FINAL RULE ON DISCLOSURES BY THE THIRD QUARTER IN TIME TO APPLY TO 1994 FINANCIAL STATEMENTS ACCORDING TO HALSEY BULLEN AN FASB PROJECT MANAGER THE PROJECT WILL CONSIDER REQUIRING BANKS AND CORPORATIONS TO DISCLOSE IN FOOTNOTES THE IMPACT OF INTERESTRATE CHANGES ON THEIR ASSETS LIABILITIES AND FINANCIAL HEALTH ACCORDING TO TIMOTHY LUCAS FASB RESEARCH DIRECTOR MR LUCAS SAID THAT THE FASB DECIDED TO TACKLE THE PROJECT FOLLOWING PRESSURE FROM THE SECURITIES AND EXCHANGE COMMISSION AND FEDERAL BANK REGULATORS FOR MORE DISCLOSURE ABOUT THE RISKS OF HOLDING DERIVATIVES 9312090094 931209 ITT TO SPIN OFF RAYONIER PAPER UNIT CONCENTRATE ON ITS HIGHERRETURN LINES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP SAID IT PLANS TO SPIN OFF ITS SLUGGISH TIMBER AND PAPER UNIT PREFERRING TO CONCENTRATE ON FASTERGROWING HIGHERRETURN BUSINESSES ITT'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER RAND V ARASKOG SAID THAT THE ITT RAYONIER UNIT HAS GOOD CASH FLOW AND A STRONG BALANCE SHEET BUT THAT THE SPINOFF WILL FREE ITT FROM THE LONG WAIT FOR A RETURN ON THE HEAVY INVESTMENTS REQUIRED IN THE PAPER INDUSTRY WE'VE PUT THEM INTO A POSITION WHERE THEY CAN BE STRONG AND INDEPENDENT HE SAID THE MOVE IS THE LATEST STEP THAT MR ARASKOG HAS TAKEN SINCE EARLY 1992 TO RESTRUCTURE THE CONGLOMERATE AND BOLSTER ITS EARNINGS AND STOCK PRICE ANALYSTS AND INVESTORS APPROVED OF THE DECISION TO SPIN OFF TO SHAREHOLDERS THE RAYONIER UNIT WHICH HAD ALMOST 1 BILLION IN REVENUE LAST YEAR IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ITT SHARES ROSE 2375 TO CLOSE AT 91125 NOT FAR FROM ITT'S 52WEEK HIGH OF 9475 AFTER THE SPINOFF ITT WOULD STILL OPERATE SEVEN WIDERANGING BUSINESSES ITT HARTFORD INSURANCE WHICH HAD 98 BILLION IN REVENUE LAST YEAR AUTOMOTIVE EQUIPMENT WITH 35 BILLION IN REVENUE DEFENSE AND ELECTRONICS WITH 21 BILLION FINANCIAL SERVICES WITH 2 BILLION FLUID TECHNOLOGY WITH 11 BILLION COMMUNICATIONS AND INFORMATION SERVICES WITH 11 BILLION AND SHERATON HOTELS WITH 780 MILLION IN REVENUE RAYONIER'S BUSINESS IS VERY CAPITALINTENSIVE AND CYCLICAL COMPARED WITH ITT'S OTHER BUSINESSES SAID JACK KELLY AN ANALYST WITH GOLDMAN SACHS & CO BY SPINNING IT OFF THE COMPANY CAN SMOOTH OUT ITS EARNINGS ANALYSTS PROJECTED THAT THE NEW COMPANY RAYONIER INC WILL HAVE A MARKET VALUE OF ABOUT 900 MILLION RAYONIER'S BOOK VALUE IS ESTIMATED AT BETWEEN 650 MILLION AND 700 MILLION THE NEW COMPANY WILL HAVE ABOUT 30 MILLION COMMON SHARES OUTSTANDING OF WHICH ITT WON'T OWN ANY ANALYSTS PROJECTED THAT THE SHARES WOULD TRADE AT ABOUT 25 TO 30 APIECE BASED ON THE TRADING MULTIPLES OF OTHER FOREST INDUSTRY STOCKS UNDER TERMS OF THE SPINOFF HOLDERS OF ITT COMMON STOCK WILL RECEIVE ONE RAYONIER SHARE FOR EVERY FOUR ITT COMMON SHARES HELD HOLDERS OF ITT'S 225 CONVERTIBLE SERIES N CUMULATIVE PREFERRED STOCK WILL RECEIVE ONE SHARE OF RAYONIER FOR EVERY 31595 SHARES HELD THE RAYONIER ANNOUNCEMENT PROMPTED ANALYSTS TO ASK WHETHER ITT MAY BE PLANNING TO FURTHER UNWIND THE COMPANY JACK MODZELEWSKI AN ANALYST WITH PAINEWEBBER INC SAID ITT WOULD HAVE A BREAKUP VALUE OF BETWEEN 130 AND 140 A SHARE BUT ITT CHIEF FINANCIAL OFFICER ROBERT A BOWMAN THREW SOME COLD WATER ON THAT THINKING INSISTING THAT WE SHOULDN'T SEE THIS DEAL AS ANYTHING MORE THAN IT IS MR MODZELEWSKI SAID STILL HE BELIEVES ITT LIKELY WILL CONTINUE TO MOVE IN THE DIRECTION OF STEPS TO MAXIMIZE THE VALUE OF VARIOUS BUSINESSES WHICH COULD MEAN MORE SPINOFFS MR ARASKOG TOOK HEAVY CRITICISM IN THE EARLY 1990S OVER HIGH EXECUTIVE SALARIES AND LETHARGIC STOCK PERFORMANCE HE INSTITUTED A MORE PERFORMANCEBASED COMPENSATION PLAN AND LAST YEAR BEGAN THE FIRST OF SEVERAL STEPS TO FOCUS ITT'S FARFLUNG BUSINESSES THE COMPANY SOLD ITS REMAINING STAKE IN THE ALCATEL TELECOMMUNICATIONS VENTURE REALIZING A PRETAX GAIN OF 942 MILLION IT ALSO TOOK MORE THAN 1 BILLION IN CHARGES TO RESTRUCTURE ITS INSURANCE BUSINESS AND ABOUT 700 MILLION IN CHARGES TO RESTRUCTURE ITS FINANCIAL SERVICES UNIT FOR NOW WHAT WE DID WITH RAYONIER IS A STANDALONE SITUATION SAID MR ARASKOG BUT WE HAVE A CONSIDERABLE AMOUNT OF FLEXIBILITY AT ITT AND WE BELIEVE THE CHANGES WE HAVE MADE LEAVE US WITH SOME PRETTY ROBUST BUSINESSES BUT WE HAVE FLEXIBILITY WITH RESPECT TO FUTURE DECISIONS WE JUST HAVE TO SEE HOW IT GOES MR BOWMAN SAID THE RAYONIER SPINOFF WILL TRIM ABOUT 45 CENTS TO 50 CENTS A SHARE FROM ITT'S EARNINGS NEXT YEAR PAINEWEBBER ESTIMATES ITT WILL HAVE AN OPERATING PROFIT OF ABOUT 645 A SHARE IN 1993 RAYONIER HAS BEEN A QUESTION MARK IN ITT'S PORTFOLIO FOR MORE THAN A DECADE ACQUIRED IN 1968 FOR ABOUT 293 MILLION IN STOCK ITT ATTEMPTED TO SELL THE UNIT IN 1981 A SALE VALUED AT 25 BILLION HOWEVER FELL APART WHEN PAPERPULP PRICES COLLAPSED THEY'VE WANTED TO SELL THIS BUSINESS FOR A LONG TIME SAID MARK ROGERS A PAPER AND FORESTPRODUCTS ANALYST WITH PRUDENTIAL SECURITIES BUT THEY HAVEN'T FOUND ANY TAKERS HE SAID RAYONIER PRODUCES WOOD PRODUCTS AS WELL AS DISSOLVING PULP USED IN HIGHEND PAPER PRODUCTS SUCH AS PHOTOGRAPHIC PAPER BUT THAT PART OF THE INDUSTRY SUFFERS FROM A LOT OF EXCESS CAPACITY AND LOW PRICES THIS MARKET IS CONSIDERED A MATURE AND STABLE BUSINESS SAID RICHARD STORAT VICE PRESIDENT OF ECONOMICS AND MATERIALS FOR THE AMERICAN FOREST AND PAPER ASSOCIATION AND CAPACITY FOR DISSOLVING PULP WILL BE FAIRLY CONSTANT OVER THE NEXT THREE YEARS HE ADDED RAYONIER ALSO OWNS ABOUT 15 MILLION ACRES OF TIMBER IN THE US AND NEW ZEALAND PARTLY AS A RESULT OF MORE STRINGENT ENVIRONMENTAL REGULATIONS TIMBER PRICES HAVE REMAINED STRONG A SPOKESMAN FOR RAYONIER SAID MOODY'S INVESTORS SERVICE INC SAID IT WOULD MAINTAIN ITS BAA2 RATING ON RAYONIER DEBT STANDARD & POOR'S CORP HOWEVER PLACED RAYONIER ON ITS CREDITWATCH REVIEW FOR A POSSIBLE DOWNGRADE S&P GIVES RAYONIER THE SAME RATING AS ITS SINGLEAPLUS ITT DEBT RATING 9312090093 931209 INTERNATIONAL MATSUSHITA PLANS TO SHIFT WORKERS IN RESTRUCTURING TOKYO MATSUSHITA ELECTRIC INDUSTRIAL CO ANNOUNCED A CORPORATE RESTRUCTURING THAT WILL SHIFT SOME 6000 ADMINISTRATIVE WORKERS TO JOBS IN SALES AND THE DEVELOPMENT OF NEW MARKETS OVER THE NEXT THREE YEARS PRESIDENT YOICHI MORISHITA SAID ABOUT 30 OF OUR 20000 ADMINISTRATIVE PERSONNEL WILL BE TRANSFERRED TO SALES AND MARKETING JOBS PARTICULARLY IN THE CREATION OF NEW MARKETS SUCH AS MULTIMEDIA THE JAPANESE ELECTRONICS GIANT ALSO ANNOUNCED MEASURES CLARIFYING RESPONSIBILITIES OF MANAGEMENT IT SAID IT WILL HAVE A RESEARCH AND DEVELOPMENT COMMITTEE HEADED BY MR MORISHITA SET THEMES FOR PRODUCT R&D AND SALES MAJOR JAPANESE COMPANIES TO COPE WITH THE ECONOMIC SLOWDOWN HAVE BEEN TRANSFERRING EMPLOYEES OUT OF LESSNEEDED POSITIONS INTO OTHER JOBS SUCH AS SALES AND MARKETING IN ORDER TO DRUM UP REVENUE AND PROFIT MATSUSHITA WHICH MAKES PANASONIC QUASAR AND TECHNICS BRAND EQUIPMENT IS THE WORLD'S LARGEST MAKER OF CONSUMER ELECTRONICS 9312090092 931209 DISTRICT OF COLUMBIA SCHOOLS CONSIDER PRIVATE MANAGERS WASHINGTON THE DISTRICT OF COLUMBIA'S SCHOOL SUPERINTENDENT HAS PROPOSED HIRING A PRIVATE FIRM TO MANAGE 10 TO 15 OF ITS WORSTPERFORMING SCHOOLS BEGINNING NEXT SEPTEMBER WHEN WE LOOK AT OUR OVERALL PERFORMANCE IT IS CLEAR WE CANNOT CONTINUE TO TINKER AROUND THE EDGES OF EDUCATIONAL REFORM SAID FRANKLIN SMITH WHO HEADS THE 165SCHOOL DISTRICT WE HAVE TO MAKE RADICAL CHANGES IN THE WAY WE DO BUSINESS DR SMITH WHO MUST WIN THE SUPPORT OF THE SCHOOL BOARD SAID NO DECISION HAD BEEN MADE AS TO WHICH SCHOOLS OR WHICH MANAGEMENT COMPANY HE HAD IN MIND BUT A SCHOOL BOARD DELEGATION TRAVELED YESTERDAY TO BALTIMORE WHERE EDUCATION ALTERNATIVES INC MANAGES NINE PUBLIC SCHOOLS AND SAID YESTERDAY IT HAD WON A CONTRACT TO RUN TWO MORE THE MINNESOTA COMPANY ALSO MANAGES A PUBLIC ELEMENTARY SCHOOL IN FLORIDA DR SMITH SAID HE ALSO FAVORED HIRING A PRIVATE COMPANY TO RUN A PROGRAM FOR 11THGRADE AND 12THGRADE STUDENTS WITH POOR READING SKILLS AND IS DISCUSSING A PROPOSAL TO PLACE A HIGH SCHOOL UNDER THE MANAGEMENT OF AN UNNAMED FORTUNE 500 COMPANY WHICH WOULD DONATE FUNDS AND PERSONNEL 9312090090 931209 CLINTON PICK TO RUN AUTO SAFETY AGENCY WAS A CONSULTANT FOR GM IN PICKUP CASE BY DOUGLAS LAVIN AND DANIEL PEARL STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION'S PICK TO HEAD THE FEDERAL AUTO SAFETY AGENCY WAS HIRED AS A CONSULTANT IN GENERAL MOTORS CORP'S COURTROOM DEFENSE OF ITS CONTROVERSIAL 197387 PICKUP TRUCKS VEHICLES THE AGENCY ASKED GM TO RECALL DR RICARDO MARTINEZ WAS A MEDICAL CONSULTANT FOR FAILURE ANALYSIS ASSOCIATES OF MENLO PARK CALIF A FIRM WHICH HAS PROVIDED DETAILED ANALYSES OF ACCIDENT REPORTS AND CRASH TESTS IN GM'S DEFENSE OF THE PICKUPS THE ADMINISTRATION KNEW OF THE CONSULTING WORK A SPOKESMAN SAID BUT DIDN'T SEE IT AS A PROBLEM STILL THE ADMINISTRATION IS ONLY NOW INVESTIGATING WHETHER DR MARTINEZ'S WORK WOULD BAR HIM FROM PARTICIPATING IN THE DEBATE OVER THE SAFETY OF GM'S SIX MILLION PICKUPS WITH SIDEMOUNTED GASOLINE TANKS THE PICKUP CASE IS THE SINGLE LARGEST ISSUE PENDING BEFORE THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION BUT IT MAY BE RESOLVED BEFORE A NEW NHTSA ADMINISTRATOR IS CONFIRMED A SPOKESMAN SAID THE ADMINISTRATION HAS COMPLETE CONFIDENCE IN DR MARTINEZ DR MARTINEZ DID NOT RETURN PHONE CALLS SOME CRITICS OF GM ON THE PICKUP SAFETY ISSUE SAID THE CONTROVERSY SHOULD NOT JEOPARDIZE THE NOMINATION OF WHAT THEY REGARD AS A QUALIFIED PICK IT DOESN'T CONCERN ME SAID CLARENCE DITLOW DIRECTOR OF THE CENTER FOR AUTO SAFETY WHICH HELPED INITIATE AN INVESTIGATION INTO THE PICKUPS' SAFETY IT WAS A SMALL AMOUNT OF CONSULTING INCIDENTAL TO HIS ONGOING ACTIVITIES FOR BOTH PLAINTIFFS AND DEFENDANTS OTHERS SAID DR MARTINEZ SHOULD RECUSE HIMSELF FROM DEBATE ON THE PICKUP AND SAID THE WORK FOR FAILURE ANALYSIS NEEDS FURTHER EXAMINATION IT COULD BECOME AN ISSUE IN THE CONFIRMATION PROCESS SAID RALPH NADER A CRITIC OF GM DR MARTINEZ AN EXPERT IN AUTOACCIDENT INJURIES CONSULTED REGULARLY FOR FAILURE ANALYSIS FOR THE PAST FEW YEARS WORK DISCLOSED BY THE DETROIT FREE PRESS HE HELPED THE FIRM REVIEW AUTOPSY REPORTS OF SHANNON MOSELEY A GEORGIA TEENAGER WHOSE DEATH IN A GM PICKUP LED TO A 105 MILLION VERDICT AGAINST THE COMPANY THIS YEAR FAILURE ANALYSIS SAID THE AUTO MAKER IS APPEALING THAT VERDICT BUT DR MARTINEZ WAS NOT ASKED TO EXAMINE THE SAFETY OF THE GM PICKUPS SAID ROGER MCCARTHY THE CHIEF EXECUTIVE OFFICER OF FAILURE ANALYSIS HE WORKED LESS THAN ONE HOUR ON THE MOSELEY AUTOPSY TO CLARIFY A MEDICAL NOTATION MR MCCARTHY SAID DR MARTINEZ'S INCOME FROM CONSULTING FOR FAILURE ANALYSIS WAS LESS THAN 6000 A YEAR FOR THE PAST TWO YEARS MR MCCARTHY SAID AND CALLED THE MATTER A TEMPEST IN A TEAPOT GM FOR ITS PART NOTED THAT DR MARTINEZ ALSO HAS SERVED ON THE BOARD OF ADVOCATES FOR HIGHWAY AND AUTO SAFETY AN AUTO INDUSTRY CRITIC AND SAID DR MARTINEZ IS A FAIRMINDED RESEARCHER WHO'S BEEN WILLING TO LEND HIS EXPERTISE TO BOTH SIDES OF THE SAFETY DEBATE 9312090089 931209 MARKETING & MEDIA MEDIA COMPANIES PREDICT MODERATE RISE IN EARNINGS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MEDIA COMPANIES PREDICTED MODERATE IMPROVEMENTS IN EARNINGS FOR THE FOURTH QUARTER AND FOR NEXT YEAR AND SEVERAL ANNOUNCED NEW ELECTRONIC PRODUCTS THEY EXPECT WILL BOOST FUTURE RESULTS TRIBUNE CO TOLD A PAINEWEBBER GROUP INC MEDIA CONFERENCE THAT THE COMPANY'S 1993 NET INCOME WILL EXCEED 1992 RESULTS AND WILL FALL WITHIN THE RANGE OF ANALYSTS' ESTIMATES OF 250 TO 260 A SHARE IN 1992 THE CHICAGOBASED PUBLISHING AND BROADCAST CONCERN EARNED 182 A SHARE TRIBUNE EXECUTIVES ADDED THAT 1994 NET INCOME SHOULD EXCEED 1993 RESULTS IN A PRESENTATION BY DOW JONES & CO CHAIRMAN AND CHIEF EXECUTIVE OFFICER PETER R KANN PREDICTED THAT THE COMPANY WHICH PUBLISHES THE WALL STREET JOURNAL WILL REPORT 1993 NET INCOME OF 146 TO 150 A SHARE UP FROM 106 A SHARE IN 1992 THE YEAREARLIER FIGURE INCLUDED A ONETIME CHARGE OF 19 CENTS A SHARE FROM ADOPTION OF TWO ACCOUNTING STANDARDS AND A WRITEDOWN OF INVESTMENTS EXCLUDING THE SPECIAL CHARGES EARNINGS WILL RISE ABOUT 18 THIS YEAR MR KANN SAID WITHOUT GIVING A SPECIFIC FORECAST MR KANN ALSO SAID HE EXPECTS 1994 TO BE ANOTHER UP YEAR IN EARNINGS FOR DOW JONES INCLUDING MODEST ADVERTISING LINAGE GAINS AT THE WALL STREET JOURNAL HE SAID REVENUE AND EARNINGS ARE EXPECTED TO IMPROVE AT ALL OF THE COMPANY'S OPERATIONS INCLUDING ITS INFORMATION SERVICES DIVISION AMONG THE NEW VENTURES TRUMPETED BY NEWSPAPER PUBLISHING EXECUTIVES PULITZER PUBLISHING CO BASED IN ST LOUIS SAID IT IS BUYING A ONETHIRD INTEREST IN A PROVIDER OF INTERACTIVE EDUCATIONAL PROGRAMMING FOR TELEVISION RXL COMMUNICATIONS MICHAEL E PULITZER CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WILL INVEST 5 MILLION TO CREATE A JOINT VENTURE CALLED RXL PULITZER WHICH WILL EXTEND OUR INVOLVEMENT IN NEW COMMUNICATIONS TECHNOLOGY AND PROVIDE AN ENTRANCE INTO A NONADVERTISING BASED BUSINESS DOW JONES SAID IT EXPECTS TO MARKET AN INTERACTIVE EDITION OF THE WALL STREET JOURNAL BY THE FALL OF 1994 WHICH WILL ALLOW JOURNAL STORIES AND OTHER FEATURES TO BE CALLED UP ON PERSONAL COMPUTERS KENNETH BURENGA PRESIDENT AND CHIEF OPERATING OFFICER OF DOW JONES SAID A PROTOTYPE OF THE INTERACTIVE EDITION HAS BEEN PRODUCED AND IS BEING TESTED WITH REGARD TO TELEVISION VENTURES MR KANN SAID DOW JONES'S ASIAN BUSINESS NEWS TELEVISION CHANNEL WHICH STARTED BROADCASTING JUST A MONTH AGO HAS BEGUN SELLING ADVERTISING THE SINGAPOREBASED CHANNEL IS OWNED JOINTLY BY DOW JONES TELECOMMUNICATIONS INC TELEVISION NEW ZEALAND AND SINGAPORE BROADCASTING CO IN RESPONSE TO A QUESTION MR KANN SAID THAT IF THE ASIAN BUSINESS NEWS CHANNEL DOES WELL DOW JONES WILL TRY TO LAUNCH A SIMILAR SERVICE IN EUROPE AND WOULD EVENTUALLY CONSIDER GETTING INTO CABLE TELEVISION INVOLVING FINANCIAL NEWS IN THE US IN ITS PRESENTATION INFINITY BROADCASTING CORP SAID IT PLANS TO ACQUIRE ADDITIONAL RADIO STATIONS UNTIL IT REACHES OWNERSHIP LIMITS SET BY THE FEDERAL COMMUNICATIONS COMMISSION THE COMPANY CURRENTLY OWNS 25 STATIONS IN 13 MARKETS AND SAID IT WILL CONCENTRATE ITS EXPANSION IN THE NATION'S TOP 10 RADIO MARKETS MEL KARMAZIN CHIEF EXECUTIVE SAID RADIO EARNINGS FOR THE INDUSTRY AT A WHOLE ARE EXPECTED TO GROW AT A 7 COMPOUNDED ANNUAL GROWTH RATE BUT THAT INFINITY EXPECTS TO EXCEED THAT RATE 9312090088 931209 HONEYWELL'S FIRING OF OVER 20 WOMEN IN MEXICO MAY TEST NAFTA UNIONS SAY BY BOB ORTEGA AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL IN A CASE THAT UNIONS ASSERT COULD BECOME A TEST OF WORKERS' RIGHTS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT HONEYWELL INC WAS ACCUSED OF ILLEGALLY FIRING AT LEAST 20 WOMEN FOR UNION ORGANIZING AT A PLANT IN CHIHUAHUA MEXICO JUAN MORALES OTERO AN ATTORNEY REPRESENTING THE FIRED WORKERS SAID THE FIRINGS VIOLATED THEIR RIGHTS TO ORGANIZE WHICH ARE PROTECTED UNDER THE MEXICAN CONSTITUTION HE SAID THE WOMEN HAD BEEN LEADING AN EFFORT TO FORM A UNION AT THE PLANT WHOSE ALMOST 500 WORKERS EARN BETWEEN 35 AND 45 A DAY IN WAGES AND BONUSES A HONEYWELL SPOKESWOMAN SAID THE TERMINATIONS WERE PART OF A PREVIOUSLY PLANNED STAFF REDUCTION AT THE PLANT WHICH MAKES BUILDINGCONTROL PRODUCTS BUT SHE ADDED THAT THE WOMEN VIOLATED WORKPLACE RULES BY LEAVING THEIR POSTS WITHOUT WRITTEN PERMISSION FROM MANAGEMENT ASKED IF THE WOMEN WERE ORGANIZING WHEN THEY WERE AWAY FROM THEIR POSTS THE SPOKESWOMAN SAID IT IS IMMATERIAL WHAT THEY WERE DOING SHE NOTED THAT HONEYWELL BASED IN MINNEAPOLIS SUPPORTED NAFTA AND THE LABOR SIDE AGREEMENTS IN MEXICO CITY BENEDICTO MARTINEZ A LEADER IN THE AUTHENTIC LABOR FRONT A LABOR ADVOCACY GROUP SAID THE GROUP WOULD CONSIDER SENDING THE HONEYWELL CASE TO THE LABOR COMMISSION THAT WAS CREATED UNDER THE LABOR SIDE PACT TO NAFTA BUT THE ENFORCEMENT MECHANISMS OF THE LABOR COMMISSION ARE GENERALLY CONSIDERED VERY WEAK BY UNIONISTS NAFTA TAKES EFFECT JAN 1 1994 ONE GOVERNMENT OFFICIAL IN MEXICO CITY NOTED THAT THE LABOR PACT ISN'T RETROACTIVE BUT HE SAID THAT IF THE DISPUTE IS UNRESOLVED IN JANUARY THE TERMS OF THE LABOR SIDE PACT MAY BE APPLIED THE TEAMSTERS AND THE UNITED ELECTRICAL WORKERS TWO UNIONS REPRESENTING HONEYWELL WORKERS IN THE US CALLED ON PRESIDENT CLINTON YESTERDAY TO CARRY THROUGH ON ASSURANCES THAT NAFTA WON'T INCREASE LABORRIGHTS VIOLATIONS IN MEXICO THE UNIONS WHICH SAID THEY WILL LEND FINANCIAL SUPPORT TO THE MEXICAN WORKERS ALSO ORGANIZED PROTESTS AT HONEYWELL FACILITIES IN TORONTO AND CHICAGO PRESIDENT CLINTON AND NAFTA SUPPORTERS IN CONGRESS TOLD THE AMERICAN PEOPLE THAT WORKERS' RIGHTS WOULD BE PROTECTED ON BOTH SIDES OF THE BORDER THESE FIRINGS PROVIDE THE FIRST TEST OF WHETHER THAT IS TRUE TEAMSTERS PRESIDENT RON CAREY SAID IN A STATEMENT AS A PRACTICAL MATTER FEW INDEPENDENT ORGANIZING EFFORTS IN MEXICO RECEIVE CRUCIAL LEGAL RECOGNITION IF THEY AREN'T PART OF THE UNION COLLECTIVES TIED TO THE MEXICAN GOVERNMENT FREEDOM OF ASSOCIATION IS ONE OF THE BROAD LABOR PRINCIPLES AGREED TO BY CANADA MEXICO AND THE US IN THE SIDE PACT ON LABOR 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 9312090087 931209 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG SO YOU'RE BUYING A COMPUTER FOR THE FAMILY AND YOU NEED SOME GOOD KIDS' SOFTWARE TO RUN ON IT ESPECIALLY SINCE YOU JUSTIFIED THE PURCHASE OF THE THING BY ASSURING YOURSELF IT'D BE GOOD FOR THE CHILDREN HERE'S A QUARTET OF NEW KIDS' PROGRAMS I THINK FIT THE BILL FOR MOST FAMILIES THESE TITLES AREN'T BORING OR VIOLENT AND DON'T REQUIRE A CDROM DRIVE ALL ARE AVAILABLE THIS HOLIDAY SEASON OR WILL BE SOON IN VERSIONS FOR BOTH IBMCOMPATIBLES AND APPLE COMPUTER'S MACINTOSH MACHINES ZURK'S LEARNING SAFARI THIS IS A MARVELOUS COLLECTION OF SKILLBUILDING GAMES FOR PRESCHOOLERS FROM A NEW COMPANY CALLED SOLEIL SOFTWARE PALO ALTO CALIF THE PACKAGE CENTERS ON ANIMALS AND SETTINGS NATIVE TO AFRICA THE MOST INTERESTING IS MAYA'S ADVENTURE IN WHICH MAYA THE LION CUB ACTUALLY WALKS AND TURNS AS YOU MOVE THE MOUSE ENCOUNTERING OTHER ANIMALS SOME OF WHICH HELP HER FIND A PATH HOME THROUGH THE TALL GRASS THERE ARE ALSO ALPHABET GAMES JIGSAW PUZZLES A MATCHING GAME AN ONSCREEN ANIMAL PICTURE BOOK AND A PAIR OF CLEVER HIDEANDSEEK GAMES IT COMES WITH A NICE BOOKLET FOR PARENTS THAT INCLUDES SUGGESTIONS FOR ADDED NONCOMPUTER ACTIVITIES AND A STORY TO READ ALOUD UNFORTUNATELY I CAN ONLY RECOMMEND THE MACINTOSH VERSION OF THIS TERRIFIC 60 PROGRAM FOR AVERAGE USERS THE IBMCOMPATIBLE VERSION WHICH DOESN'T REQUIRE WINDOWS CAN BE SO TRICKY AND FRUSTRATING TO INSTALL DEPENDING ON YOUR PARTICULAR COMPUTER HARDWARE THAT I THINK IT'S BEST RESERVED FOR THE TECHNICALLY ADEPT WHAT A SHAME CREATIVE WRITER THE FIRST ENTRY BY MICROSOFT INTO KIDS' SOFTWARE IS A FANCIFUL YET POWERFUL WORDPROCESSING PROGRAM FOR CHILDREN EIGHT TO 14 WITH EITHER MACS OR IBMS RUNNING WINDOWS THE EMPHASIS HERE IS ON IMAGINATION AND CREATIVITY TO ACHIEVE THAT THE ACTUAL WORD PROCESSOR IN CREATIVE WRITER IS EMBEDDED IN AN ENTIRE FANTASY WORLD CALLED IMAGINOPOLIS A GOOFYLOOKING CARTOON CHARACTER NAMED MCZEE LEADS USERS INTO A COLORFUL BUILDING WITH FLOORS HOUSING A WRITING STUDIO THE BASIC PROGRAM A PROJECTS WORKSHOP AN IDEA WORKSHOP AND A LIBRARY THERE ARE LOTS OF SOUNDS AND SPECIAL EFFECTS THE WORD PROCESSOR ITSELF HAS MOST OF THE FUNCTIONS OF ADULT PROGRAMS INCLUDING TEXT THAT WRAPS AROUND PICTURES A LIMITED CHOICE OF FONTS AND TYPE SIZES A SPELLING CHECKER AND THESAURUS BUT THERE ARE ALSO COLORFUL BACKGROUND DESIGNS AND BORDERS FUNNY SOUNDS ANIMATIONS JOKES AND A SYSTEM FOR TURNING WORDS INTO SECRET CODE THERE'S A FEATURE CALLED THE SPLOT MACHINE THAT CREATES THOUSANDS OF STORY STARTERS NONSENSE SENTENCES TO PROMPT THE YOUNG WRITER SUCH AS THE LAUGHING ANTEATER DARTED QUICKLY INTO YOUR DESK THE PROJECT WORKSHOP HOLDS STEPBYSTEP GUIDES THAT CREATE BANNERS CARDS AND MOOSEPAPERS USING THE 65 PROGRAM IS RATHER DIFFERENT FROM USING SAY MICROSOFT WORD AND IT'LL DRIVE SOME GROWNUPS NUTS EVEN THOUGH YOU CAN SKIP MCZEE AND MOST OF THE BUILDING MENUS AND ICONS ARE COLORFUL AND ARRANGED IN SHORT GROUPS TO CHANGE A FONT TYPE SIZE OR STYLE JUST PAINT OVER EXISTING TEXT AFTER MAKING A SELECTION FROM THE MENU IN STANDARD PROGRAMS YOU HAVE TO FIRST HIGHLIGHT THE WORDS BEING CHANGED EXPERIENCED COMPUTER USERS WILL NOTE THAT CREATIVE WRITER BORROWS SOME FEATURES FROM OUTSTANDING PREDECESSORS SUCH AS BRODERBUND SOFTWARE'S KID PIX AND PRINT SHOP BUT MICROSOFT HAS SUCCEEDED IN CREATING SOMETHING NEW SOMETHING THAT IS AN ENTIRE KIDS' THINKING ENVIRONMENT THE EVEN MORE INCREDIBLE MACHINE THIS IS A FASCINATING 50 GAME FOR OLDER CHILDREN AND ADULTS IN WHICH YOU SOLVE PUZZLES BY CONSTRUCTING ANIMATED RUBE GOLDBERGLIKE MACHINES OUT OF PARTS THAT RANGE FROM THE MUNDANE PULLEYS NAILS AND GEARS TO THE SILLY MICE DYNAMITE AND TRAMPOLINES FOR INSTANCE IN THE EASY FIRST PUZZLE YOU'RE ASKED TO USE THREE BOWLING BALLS TO PUSH A BASKETBALL THROUGH A HOOP YOU DO IT BY DROPPING ONE ONTO A MOUSE WHICH RUNS AROUND A LITTLE WHEEL WHICH YOU ATTACH TO A CONVEYOR BELT AND YOU GET THE IDEA I FOUND THIS PROGRAM ADDICTIVE AND CHALLENGING AND I EXPECT THAT IT WOULD APPEAL ESPECIALLY TO CHILDREN WHO LIKE BUILDING THINGS THE PUBLISHER DYNAMIX AN ARM OF SIERRA ONLINE COARSEGOLD CALIF HAS ISSUED SEPARATE VERSIONS FOR IBMS RUNNING PLAIN DOS AND THOSE THAT RUN WINDOWS AND FOR MACINTOSHES IN ADDITION THE NEW VERSION FEATURES A SORT OF VIRTUALREALITY FEELING YOU MOVE THE MOUSE AND IT SEEMS YOU YOURSELF ARE MOVING AROUND IN THE THEME PARK AND EVEN INSIDE BUILDINGS AS BEFORE THE PROGRAM IS LOADED WITH FACTS AND FIGURES AND PICTURES OF DINOSAURS NARRATION AND SEVERAL GAMES THERE'S A SEPARATE CDROM VERSION WITH MORE MOVIE CLIPS OF MOVING DINOSAUR MODELS SO FAR THE PROGRAM IS AVAILABLE ONLY FOR IBMCOMPATIBLES BUT A MAC VERSION IS DUE EARLY NEXT YEAR YOUR CHILDREN WILL ENJOY USING ALL FOUR OF THESE PROGRAMS ON THEIR NEW COMPUTERS AS SOON AS YOU PARENTS GET THE DARNED THINGS SET UP 9312090086 931209 ECONOMY WHITE HOUSE SEEKS 30 BILLION IN SPENDING CUTS PANETTA SAYS 1995 BUDGET WILL STUDY EVERYTHING INCLUDING ENTITLEMENTS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS FACING A 30 BILLION PREDICAMENT AS IT TRIES TO WHITTLE AWAY SPENDING FOR FISCAL 1995 BUDGET DIRECTOR LEON PANETTA SAID MR PANETTA SAID FEDERAL AGENCIES HAVE SUBMITTED PROGRAM REQUESTS THAT ARE ABOUT 20 BILLION ABOVE THE SPENDING LIMITS SET IN LAST SUMMER'S DEFICITREDUCTION LAW IN ADDITION HE SAID THE WHITE HOUSE BUDGET OFFICE MUST FIND AN ADDITIONAL 10 BILLION TO FINANCE CONGRESSIONALLY MANDATED PAY RAISES AND TO COPE WITH TECHNICAL CHANGES IN THE SPENDING LIMITS CAUSED BY CHANGES IN THE ADMINISTRATION'S INFLATION FORECAST MR PANETTA IN AN INTERVIEW WITH A SMALL GROUP OF REPORTERS INSISTED THAT EVERYTHING IS ON THE TABLE AS PRESIDENT CLINTON'S AIDES SCOUT FOR CUTS THAT WOULD ENABLE HIM TO FUND PET PROJECTS SUCH AS WORKER TRAINING IN THE BUDGET FOR FISCAL 1995 WHICH BEGINS NEXT OCT 1 WHILE SOME IN THE ADMINISTRATION AS WELL AS THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL HAVE PUSHED FOR WELFARE REFORM TO BE A FOCUS NEXT YEAR MR PANETTA SAID THERE NEEDS TO BE SOME REALITY CHECKS AND THAT HEALTH CARE WOULD BE THE NO 1 PRIORITY HE REASONED THAT MANY OF THE SAME HOUSE AND SENATE COMMITTEES MUST CONSIDER BOTH ISSUES IT IS KIND OF DIFFICULT TO WALK BOTH OF THOSE TRACKS AT THE SAME TIME HE SAID MR PANETTA SAID A WELFARE PLAN WOULD BE FILED EARLY IN THE YEAR BUT ISN'T LIKELY TO BE ENACTED NEXT YEAR UNLESS HEALTH CARE PICKS UP STEAM AND IS COMPLETED BY LATE SPRING BUT MOST BELIEVE THAT A HEALTH PLAN WON'T BE ENACTED BEFORE THE FALL AND MAY TAKE UNTIL EARLY 1995 ILLUSTRATING THAT THE ADMINISTRATION IS WILLING TO CONSIDER POLITICALLY SENSITIVE MEASURES MR PANETTA SUGGESTED THAT THEY WOULD HAVE TO LOOK AT MEANS TESTING FOR ENTITLEMENTS OR REDUCING BENEFITS PAID TO UPPERINCOME AMERICANS HE SAID THERE IS NO SUPPORT FOR RAISING TAXES LEAVING SPENDING CUTS AS THE ONLY OPTION AND ONE THAT PLACES ENTITLEMENTS ON THE TABLE I'VE ALWAYS FELT THAT WHEN YOU LOOK AT ENTITLEMENTS GENERALLY THAT'S ONE OF THE OPTIONS THAT YOU OUGHT TO LOOK AT AS ONE OF THE WAYS TO DEAL WITH IT HE SAID OF MEANS TESTING MR PANETTA SAID THE PUBLIC IS PREPARED FOR A DISCUSSION OF THE BENEFITS RECEIVED BY PEOPLE AT THE HIGHEST INCOME LEVELS MR PANETTA HOWEVER DIDN'T SAY WHETHER THE BUDGET PRESIDENT CLINTON SENDS TO CONGRESS IN FEBRUARY WILL INCLUDE PROPOSALS FOR MEANS TESTING A BUDGET OFFICE SPOKESMAN SAID THAT THE IDEA WILL PROBABLY BE DEBATED BY A SENATE COMMISSION REVIEWING THE ISSUE OF ENTITLEMENTS THE TERM ENTITLEMENTS REFERS TO GOVERNMENT PROGRAMS SUCH AS FARM SUBSIDIES AND MEDICARE WHICH DON'T REQUIRE ANNUAL APPROPRIATIONS BY CONGRESS DESPITE THE BUDGET CRUNCH MR PANETTA SAID THERE ARE SEVERAL INVESTMENT AREAS THAT MR CLINTON WANTS TO FUND CHIEF AMONG THEM HE SAID ARE PROGRAMS FOR CHILDREN SUCH AS HEAD START AND EDUCATION TECHNOLOGY AND SCIENCE INITIATIVES AND PROGRAMS THAT HELP COMMUNITIES AND INDIVIDUALS ADJUST TO MILITARY BASE CLOSINGS MR PANETTA NOTED THAT LAST YEAR THE ADMINISTRATION HAD EXPECTED TO BE ABLE TO SPEND 294 BILLION ON SUCH INVESTMENTS IN FISCAL 1995 BUT HE PREDICTED THAT HE WOULD ONLY BE ABLE TO FIT ABOUT 16 BILLION OF IT UNDER THE TOUGH BUDGET CAPS BUT MR PANETTA DASHED THE HOPES OF THOSE TAKING AIM AT THE DEFENSE BUDGET IT IS UNLIKELY HE SAID THAT MR CLINTON WOULD EMBRACE ANY CUTS BEYOND THOSE HE OUTLINED IN APRIL HE PREDICTED THAT SOME WITHIN THE ADMINISTRATION MAY TRY TO CUT DEFENSE MORE DEEPLY BUT SAID MY SENSE IS THAT THE PRESIDENT FEELS VERY STRONGLY THAT HE IS GOING TO PROTECT WHERE THE DEFENSE BUDGET IS RIGHT NOW MR PANETTA SAID THAT PRELIMINARY ADMINISTRATION ESTIMATES SUGGEST THAT THE FISCAL 1998 DEFICIT MAY BE NARROWER THAN THE ADMINISTRATION'S LAST OFFICIAL PROJECTION OF 180 BILLION THE CHANGE REFLECTS UPDATED ECONOMIC FORECASTS AND TECHNICAL FACTORS THAT ARE LIKELY TO CHANGE AGAIN BEFORE THE WHITE HOUSE ISSUES A NEW OFFICIAL PROJECTION IN FEBRUARY FISCAL 1998 IS THE FINAL YEAR OF THE FIVEYEAR BUDGET MR CLINTON SUBMITTED THIS YEAR THE CAPS ON SPENDING WON'T BE ALTERED BY A CHANGE IN THE DEFICIT OUTLOOK MOREOVER MR PANETTA SAID THE ADMINISTRATION'S FISCAL RESTRAINT HAS PRODUCED CONVERTS IN THE WHITE HOUSE AND THERE IS NOW CONSIDERABLY LESS PRESSURE TO USE SPENDING AS A TOOL TO SPARK THE ECONOMY THERE'S A SENSE THAT WHAT WE DID ON THE BUDGET WAS THE RIGHT THING TO DO AND WE'VE GOT TO STAY ON THAT PATH HE SAID AT A LUNCH WITH REPORTERS YESTERDAY MR CLINTON CONCEDED THAT IT IS GOING TO BE VERY TOUGH BUT THE ADMINISTRATION MUST CUT SPENDING AND HE PREDICTED THAT THE TOUGH CHOICES CAN BE MADE IF THERE IS A CONSENSUS IN CONGRESS WHILE MR CLINTON EMPHASIZED THE IMPORTANCE OF REDUCING THE DEFICIT HE SAID IT WOULD BE WRONG TO MAKE A FETISH OUT OF IT THAT WOULD PROMOTE A RECESSION 9312090085 931209 ECONOMY FED STUDY FINDS ECONOMY RISING IN MOST REGIONS CALIFORNIA IS STILL SLUGGISH BUT BUSINESS SENTIMENT SEEMS TO BE IMPROVING BY DAVID WESSEL AND DAVID MULHOLLAND STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AN UPBEAT FEDERAL RESERVE SURVEY OF REGIONAL ECONOMIC CONDITIONS ADDED TO MOUNTING EVIDENCE THAT THE US ECONOMY IS IMPROVING SIGNIFICANTLY NEARLY EVERYWHERE BUT CALIFORNIA REPORTS WERE GENERALLY MORE OPTIMISTIC THAN THOSE OF THIS SUMMER THE FED SAID IN A SUMMARY OF SURVEYS MADE BY ITS 12 REGIONAL BANKS IN PREPARATION FOR A DEC 21 MEETING OF FED POLICY MAKERS ECONOMIC ACTIVITY CONTINUED TO EXPAND AT A MODERATE PACE THROUGH THE END OF NOVEMBER IN CALIFORNIA HOWEVER THE SAN FRANCISCO FEDERAL RESERVE BANK SAID MANUFACTURING CONSTRUCTION TRADE AND FINANCIAL SECTORS REMAIN SLUGGISH IT DID NOTE THAT BUSINESS SENTIMENT SEEMS TO BE IMPROVING AFTER AN UNSEASONABLY SLOW START RETAILERS ACROSS THE COUNTRY SAY SALES PICKED UP AFTER THANKSGIVING AND THEY ARE INCREASINGLY OPTIMISTIC ABOUT CHRISTMAS SALES THE FED FOUND BUT RETAILERS IN THE NORTHEAST AND MIDWEST EXPECT TO RELY MORE HEAVILY THAN USUAL ON PROMOTIONS NEW ENGLAND RETAILERS FORESEE A TOUGH COMPETITIVE HOLIDAY SEASON THE BOSTON FED SAID ALL ARE GOING ALL OUT' TO ATTRACT SHOPPERS OFFERING COUPON PROMOTIONS LONGER STORE HOURS AND LARGE DISCOUNTS BEGINNING IN MIDNOVEMBER REPORTS FROM MANUFACTURERS WERE GENERALLY OPTIMISTIC ALTHOUGH THE FED NOTED THAT EMPLOYMENT GAINS REMAIN MUTED DEMAND IS STRONG FOR CONSTRUCTIONRELATED GOODS AUTOS AND PARTS AND CONSUMER DURABLES THE ATLANTA FED SAID THAT THE SHIPBUILDING INDUSTRY IS IMPROVING AS A RESULT OF NEW ORDERS FOR FLOATING CASINOS RETRENCHMENT IN AEROSPACE IS HURTING THE ECONOMY OF WESTERN WASHINGTON HOWEVER AND CUTBACKS IN DEFENSE AND SPACE PROGRAMS ARE SHOWING UP AS LAYOFFS IN SEVERAL PLACES AN INCREASE IN HOMEBUILDING IS ADDING TO THE VIGOR OF THE ECONOMY IN MOST REGIONS THE FED SAID IT'S VIRTUALLY IMPOSSIBLE IN GRAND FORKS ND TO FIND CONSTRUCTION WORKERS A MEMBER OF A MINNEAPOLIS FED ADVISORY COMMITTEE SAID BUT JOBS AT NEAR THE MINIMUM WAGE REMAIN IN SCARCE SUPPLY 225 PEOPLE RECENTLY APPLIED FOR 16 JOBS PAYING 450 AN HOUR IN EASTERN NORTH DAKOTA WAGE INCREASES AND PRICES FOR FINAL GOODS GENERALLY WERE SAID TO BE STABLE THE FED SAID ALTHOUGH SEVERAL DISTRICTS REPORTED THAT PRICES FOR LUMBER AND OTHER BUILDING MATERIALS HAVE RISEN SINCE OCTOBER A RECENT MINNEAPOLIS FED POLL FOUND 54 OF THOSE SURVEYED EXPECT PRICES TO INCREASE 3 OR LESS OVER THE NEXT YEAR IN CONTRAST ONLY 27 A YEAR EARLIER WERE THAT OPTIMISTIC ABOUT INFLATION BOSTON GRADUAL ECONOMIC EXPANSION REPORTED ALTHOUGH RETAIL SALES WERE MODEST AT BEST AND ONLY WEAK GROWTH WAS SEEN IN COMMERCIAL REAL ESTATE MANUFACTURERS EXPERIENCED STRONG GAINS FOR CONSUMER DURABLES MODERATE GAINS FOR MACHINERY AND LOSSES IN AEROSPACE AND DEFENSE AND MEDICAL INSTRUMENTS NEW YORK STRONG RETAIL SALES AND LARGE MANUFACTURINGJOB INCREASES IN NEW JERSEY HELPED THE OUTLOOK DESPITE A FLAT REALESTATE MARKET AND MIXED LOAN DEMAND PHILADELPHIA MANY SECTORS POSTED MODERATE GAINS MANUFACTURERS EXPECT INCREASED ORDERS TO CONTINUE DESPITE ONLY SLIGHT INCREASES IN LOAN DEMAND HOME SALES AND CONSTRUCTION PICKED UP MOST REALTORS FELT THIS IS IN RESPONSE TO THE PERCEPTION THAT MORTGAGE RATES HAD BOTTOMED OUT CLEVELAND STRONG INCREASES IN AUTO LEASING AND HEALTHY DEMAND FOR BOTH CONSTRUCTION AND MACHINERY CONTRIBUTED TO EXPANDING ECONOMIC ACTIVITY RETAIL SALES ADVANCED MORTGAGELOAN DEMAND FLATTENED OUT WHILE AUTOLOAN DEMAND STRENGTHENED RICHMOND CONTINUING MANUFACTURING GAINS AND INCREASED RETAIL SALES FUELED AN ECONOMIC UPTURN HELPED ALONG BY IMPROVING HOME SALES HOUSING STARTS AND TOURISM PORT ACTIVITY WAS FLAT WHILE LOAN DEMAND WENT UP SLIGHTLY AGRICULTURE SHOWED MIXED RESULTS ATLANTA MODERATE EXPANSION RESUMED AFTER SLOW GROWTH IN EARLY FALL A SURGE IN SALES OF NONDURABLES AND A STRONG SHOWING BY SINGLEFAMILY HOMES POWERED THE UPTURN MANUFACTURERS OF BUILDING MATERIALS AND COMMERCIAL TRUCKS HAVE BENEFITED FROM THE STRENGTHENING HOUSING MARKET INFLATION REMAINED STABLE ALTHOUGH PRICES FOR LUMBER AND BUILDING MATERIALS HAVE INCREASED CHICAGO ECONOMIC EXPANSION PICKED UP MOMENTUM AS SUPPLIERS WERE HELPED BY INCREASED AUTO DEMAND GAINS WERE ALSO POSTED IN RETAIL CONSUMERDURABLE AND BUILDINGMATERIAL SALES LOAN DEMAND WAS UP WHILE AGRICULTURE SUFFERING FROM THE SUMMER'S FLOODS WAS DOWN ST LOUIS ECONOMIC ACTIVITY CONTINUES TO GROW SUMMER FLOODING DAMAGED THE FARM SECTOR BUT GAVE A BOOST TO THE CONSTRUCTION INDUSTRY WHICH HAS RIPPLED OUT TO INCREASE CONSUMER DEMAND ESPECIALLY FOR AUTOS AND AUTO LOANS MANUFACTURING HAS ALSO INCREASED MINNEAPOLIS HOLIDAY RETAIL SALES WERE STRONG CONSTRUCTION REMAINED VIGOROUS AND MANUFACTURING POSTED SOLID GAINS MINING FORESTRY AND AGRICULTURE SHOWED MIXED RESULTS KANSAS CITY MODERATE GROWTH CONTINUED WITH LOW INFLATION RETAIL SALES AND REALESTATE ACTIVITY INCREASED FURTHER DESPITE FLAT MANUFACTURING AND FARM SECTORS AND A SLOWDOWN IN OIL AND GAS PRODUCTION LOAN DEMAND IMPROVED DALLAS MANUFACTURERS REPORTED STEADY GROWTH AND HOME CONSTRUCTION REMAINED HEALTHY RETAIL SALES INCREASED SLIGHTLY AND BUSINESSSERVICE COMPANIES HAD SLOWLY GROWING DEMAND AGRICULTURE WAS UP COMMERCIAL LOANS WERE FLAT AND OIL AND GAS WERE DOWN SAN FRANCISCO CALIFORNIA WAS WEAK IN ALL SECTORS EXCEPT AGRICULTURE WHILE THE OTHER STATES IN THE REGION WERE STRONG IN MOST SECTORS UTAH AND IDAHO POSTED ROBUST RETAIL SALES CONSTRUCTION IMPROVED IN WASHINGTON AND OREGON THE BANKING SECTOR WAS LACKLUSTER IN CALIFORNIA AND BRIGHT ELSEWHERE IN THE REGION 9312090084 931209 POLITICS & PEOPLE A NEW FOCUS TO THE HOMELESS PROBLEM BY ALBERT R HUNT AS WINTER APPROACHES THE USUAL DEBATE OVER WHY THERE'S HOMELESSNESS IN SUCH A PROSPEROUS COUNTRY GOES LIKE THIS OR B THE HOMELESS CHOOSE THEIR LOT ARE BASICALLY BEYOND HELP AND WE INSTEAD SHOULD WORRY ABOUT PREVENTING THEM FROM BOTHERING OTHERS WITH THAT DEBATE NOTES ANDREW CUOMO THE ASSISTANT SECRETARY OF HOUSING AND URBAN DEVELOPMENT FOR COMMUNITY PLANNING AND DEVELOPMENT WE HAVE WASTED 10 YEARS MR CUOMO AND HIS BOSS HUD SECRETARY HENRY CISNEROS WANT TO AVOID THESE FALSE CHOICES AND FOCUS ON THE ROOT PROBLEM OF THE CHRONICALLY HOMELESS TREATMENT FOR ALCOHOL AND DRUG ABUSE OR MENTAL ILLNESS INADEQUATE HOUSING FOR SURE IS A PROBLEM FOR THE URBAN HOMELESS BUT GOVERNMENT'S CHIEF FAILURE HAS BEEN NOT TO DEAL WITH THE HOMELESS IN TERMS OF DRUGS OR ALCOHOL OR MENTAL ILLNESS THE HOMELESS ADVOCATES FELT THERE WAS STRONGER PUBLIC SUPPORT IF THEY ARGUED ABOUT HOUSING RATHER THAN ADDICTION NOTES MR CUOMO WHO RAN A HOMELESS EFFORT IN NEW YORK BEFORE ASSUMING HIS CURRENT POST NOW HE'S TRYING TO PERSUADE THE CLINTON ADMINISTRATION TO SWITCH THIS EMPHASIS IN A MAJOR WAY ALREADY SECRETARY CISNEROS HAS DOUBLED HUD'S HOMELESS BUDGET TO 800 MILLION AND HE AND MR CUOMO ARE PUSHING TO DOUBLE IT AGAIN FOR FISCAL 1995 THAT WON'T BE EASY IN AN INCREDIBLY TIGHT FISCAL CLIMATE INTERIOR SECRETARY BRUCE BABBITT IN HIS BUDGET SESSION WITH THE PRESIDENT THIS WEEK CRACKED THIS BLOODLETTING PROCESS IS INTERESTING NOT ONLY IS MONEY SCARCE BUT SOME OF THE DEMOCRATIC LEADERSHIP COUNCIL TYPES SELFSTYLED NEW DEMOCRATS ARGUE THAT MORE SPENDING FOR THE HOMELESS IS OLD DEMOCRATIC POLITICS APPEALING TO THE CONSTITUENCIES OF YESTERDAY THEY'RE WRONG ANDREW CUOMO AND HENRY CISNEROS AREN'T SIMPLY TRYING TO THROW MORE MONEY AT AN INSOLUBLE PROBLEM BY CHANGING THE FOCUS TO TREATMENT TRYING TO PRIVATIZE SOME OF THE HOMELESS EFFORT AND ASKING FRESH QUESTIONS THEY ARE LAUNCHING AN INNOVATIVE INITIATIVE THIS IS THE MOST AGGRESSIVE AND BEST APPROACH WE'VE SEEN AT THE FEDERAL LEVEL NOTE HOMELESS EXPERTS ALICE BAUM AND DONALD BURNES AUTHORS OF A RECENTLY ACCLAIMED BOOK A NATION IN DENIAL WHICH OFFERS A DEVASTATING CRITIQUE OF PAST APPROACHES TO THE HOMELESS THE ARCHITECTS OF MANY OF THE HOMELESS PROGRAMS OVER THE PAST DECADE FREQUENTLY VETERAN POVERTY WARRIORS OF THE 1970S ACCUSTOMED TO THINKING OF SOCIAL ILLS IN TERMS OF POVERTY AND DISEMPOWERMENT MADE THREE TRAGIC MISTAKES IN DIAGNOSING THE PROBLEMS OF HOMELESS MR BURNES AND MS BAUM WRITE THEY CONFUSED HOMELESSNESS WITH POVERTY THEY MISTOOK DISABLING ALCOHOLISM DRUG ADDICTION AND MENTAL ILLNESS FOR LACK OF OPPORTUNITY AND THEY EQUATED DISAFFILIATION WITH LACK OF POLITICAL POWER THE EMPHASIS THEY NOTE WAS ON MORE AND MORE RESIDENTIAL SHELTERS WHICH INCREASED ABOUT SIXFOLD OVER THE PAST DECADE WHILE THE PROBLEM IF ANYTHING GOT WORSE THE AUTHORS SPENT SEVERAL YEARS WORKING WITH A CHURCHBASED ORGANIZATION CREATED TO HELP THE POOR AND HOMELESS IN WASHINGTON AND REACHED A MUCH DIFFERENT CONCLUSION WHAT WE SAW INSTEAD WERE PEOPLE FRUSTRATED AND ANGERED BY PERSONAL LIVES OUT OF CONTROL THEY WERE ENTRAPPED BY ALCOHOL AND DRUG ADDICTIONS MENTAL ILLNESS LACK OF EDUCATION AND SKILLS AND SELFESTEEM SO LOW IT WAS OFTEN MANIFESTED AS SELFHATE THIS MAY BE A BIT OVERSIMPLIFIED MARTHA BURT OF THE URBAN INSTITUTE WHICH HAS CONDUCTED AN EXTENSIVE STUDY OF THE HOMELESS CALCULATES THERE ARE ABOUT 600000 HOMELESS AT ANY GIVEN TIME ABOUT ONETHIRD OF WHOM FALL INTO THE CHRONIC CATEGORY THE OTHERS ARE MORE VICTIMS OF MACROECONOMICS THERE HAVE BEEN ALMOST NO GAINS IN REAL WAGES FOR THE WORKING POOR OVER THE PAST TWO DECADES WHO SHIFT IN AND OUT OF HOMELESSNESS MR CUOMO AGREES TALKING ABOUT THE CHURNING STATE OF HOMELESSNESS BUT HE FEELS HUD NOW HAS TO FOCUS ON THE MORE TANGIBLE CHRONICALLY HOMELESS WHO HAVE BEEN DENIED OPPORTUNITY FOR THE BASIC TREATMENT AND SERVICES THEY NEED THERE ARE A NUMBER OF LOCAL SUCCESS STORIES THAT OFFER HOPE IN PORTLAND ORE THE CITY IS WAGING AN INTENSE COMPREHENSIVE ATTACK COMBINING RESOURCES OF LOCAL AND FEDERAL GOVERNMENT HOMELESS ADVOCATES AND THE BUSINESS COMMUNITY TO OFFER A RANGE OF SERVICES FOR DRUG AND ALCOHOL ABUSE AND MENTAL ILLNESS PORTLAND REPORTS AN IMPRESSIVELY HIGH SUCCESS RATE IN KEEPING PEOPLE CLEAN AND SOBER OR STABILIZED IF MENTALLY ILL MR CUOMO TALKS ABOUT SIMILAR COMPREHENSIVE EFFORTS THE FIRST IS A NEW INITIATIVE IN WASHINGTON WITH A HEAVY EMPHASIS ON THE PRIVATE SECTOR WE NEED TO CONTRACT OUT A LOT MORE SERVICE TO THE PRIVATE SECTOR HE SAYS HE KNOWS THIS WON'T BE EASY WHEN HE TRIED SOME SIMILAR MEASURES IN NEW YORK CITY HE WAS ROUNDLY DENOUNCED BY THE MUNICIPAL UNIONS AND HOMELESS ADVOCATES THE SON OF THE GOVERNOR OF NEW YORK RECALLS WITH A GRIN THE TIME THAT HOUSING ADVOCATE ROBERT HAYES CASTIGATED HIM AS A CARDCARRYING MEMBER OF THE HERITAGE FOUNDATION AND IT'S NOT CHEAP IT'S ESTIMATED THAT THE TREATMENT OF THESE HOMELESS PEOPLE COSTS IN THE NEIGHBORHOOD OF 30000 A YEAR OR ABOUT 6 BILLION TO REACH ALL THE CHRONICALLY HOMELESS THEN THERE'S THE MATTER OF INVOLUNTARY COMMITMENT OF HOMELESS PEOPLE FIERCELY OPPOSED BY CIVIL LIBERTARIANS ONLY 10 DAYS AGO THE DEATH OF HOMELESS 43YEAROLD YETTA ADAMS ATTRACTED ATTENTION BECAUSE SHE DIED RIGHT ACROSS THE STREET FROM HUD SHE HAD DECLINED HELP FROM SHELTER OPERATORS AND MENTAL HEALTH PROFESSIONALS MR CUOMO STRADDLES NOTING THAT EXPERTS TELL YOU WHERE TREATMENT ISN'T VOLUNTARY IT USUALLY IS NOT EFFECTIVE BUT THEN OFFERING A VERY BROAD INTERPRETATION OF WHEN UNSTABLE PEOPLE ARE IN IMMINENT DANGER TO THEMSELVES AND THUS CAN BE INVOLUNTARILY TREATED RATIONAL PEOPLE DON'T WANT TO SLEEP ON PARK BENCHES BUT THERE'S NO AMBIVALENCE IN THE 36YEAROLD ASSISTANT SECRETARY'S INSISTENCE THAT THE ADMINISTRATION HAS TO START ADDRESSING THE REAL PROBLEMS FORCEFULLY THERE'S A BACKLASH AGAINST THE HOMELESS BUILDING HE SAYS NOTING THE PLETHORA OF ANTIVAGRANCY AND ANTIHARASSMENT LAWS BEING PASSED SEVERAL YEARS AGO WASHINGTON ENACTED A RIGHTTOSHELTER ACT AND THEN VOTED TO REPEAL IT WHATEVER THE OPPOSITION FROM THE FISCAL CONSERVATIVES AND SOCALLED NEW DEMOCRATS HE ALSO FIGURES HE HAS SOME POWERFUL ALLIES IN THE WHITE HOUSE WE OUGHT TO FORGET THE WORD HOMELESS MR CUOMO SAYS IF WE TALKED ABOUT THE MENTALLY ILL SAY IT WOULD BE A MUCH DIFFERENT DISCUSSION SOME HOMELESS ADVOCATES HAVE PERPETUATED THE RHETORIC AND MYTH OF A ROMANTICIZED POPULATION LET'S DISPENSE WITH THE ROMANTICISM AND RHETORIC HE SAYS AND START DEALING WITH THE PROBLEM 9312090083 931209 POLITICS & POLICY CLINTON NOT POSITIVE' US CAN AVOID CRISIS IN SHOWDOWN WITH NORTH KOREA BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON EXPRESSED A BLEAK OUTLOOK FOR THE STANDOFF WITH NORTH KOREA AND THE POSSIBILITY THAT THE COUNTRY IS BUILDING A NUCLEAR WEAPON MR CLINTON TOLD REPORTERS I HOPE WE ARE NOT HEADED TOWARD A FULLBLOWN CRISIS HOWEVER HE ALSO SAID I HOPE WE CAN AVOID ONE BUT I AM NOT POSITIVE THAT WE CAN HE ADDED THAT IF A CONFRONTATION DOES COME THE US WILL DO WHAT WE NEED TO DO THE PRESIDENT SOUNDING A NEW NOTE OF PESSIMISM ON BREAKING A STALEMATE OVER NUCLEAR INSPECTIONS DECLARED THAT THE U S HAD LOOKED AT ALL POSSIBLE CONTINGENCIES AND I HOPE WE ARE NOT HEADED TOWARD A FULLBLOWN CRISIS THE US HAS DECLARED UNACCEPTABLE NORTH KOREA'S PROPOSAL TO ALLOW LIMITED INSPECTIONS OF SOME OF ITS NUCLEAR SITES NORTH KOREA WOULD SEVERELY RESTRICT INSPECTIONS OF WHAT EXPERTS CONSIDER ITS TWO MOST IMPORTANT NUCLEAR FACILITIES FOR THE PAST FEW DAYS THE CLINTON ADMINISTRATION HAS CONSULTED WITH JAPAN SOUTH KOREA AND OTHER US ALLIES ABOUT WHAT COURSE TO TAKE THE MOST LIKELY STEP WOULD BE TO ATTEMPT TO PERSUADE THE UNITED NATIONS TO IMPOSE STIFF ECONOMIC SANCTIONS AGAINST NORTH KOREA IF IT DOESN'T COOPERATE WITH INTERNATIONAL INSPECTORS RECENTLY MR CLINTON HAD TRIED TO SOUND UPBEAT WHEN DISCUSSING THE DISPUTE BUT NOW A SENIOR WHITE HOUSE OFFICIAL WARNS THE CLOCK IS TICKING I AM CONFIDENT THAT IF GOD FORBID ANY KIND OF CONFLICT SHOULD COME WE COULD DO WHAT WE NEED TO DO MR CLINTON SAID MR CLINTON'S REMARK THAT HE WASN'T POSITIVE A CRISIS COULD BE AVOIDED WASN'T IN THE WHITE HOUSE TRANSCRIPT OF THE SESSION BUT SEVERAL REPORTERS WHO ATTENDED HAD THE QUOTE IN THEIR NOTES THE WHITE HOUSE ATTRIBUTES THE DISCREPANCY TO DEFICIENCIES IN ITS TAPE RECORDING REPORTERS WEREN'T ALLOWED TO TAPE THE SESSION MR CLINTON ALSO TURNED THE SHOOTING IN NEW YORK INTO AN APPEAL FOR APPROVAL OF HIS ANTICRIME BILL IN CONGRESS IN PARTICULAR HE SAID THE KILLING OF FIVE PASSENGERS AND THE WOUNDING OF 18 OTHERS ON A COMMUTER TRAIN TUESDAY MIGHTN'T HAVE OCCURRED IF A PROVISION IN THE SENATEPASSED BILL BANNING WEAPONS WITH LARGE CLIPS WAS LAW I HOPE VERY MUCH THAT WHEN THE CONGRESS COMES BACK THEY WILL PASS IT HE ADDED MR CLINTON ALSO SAID HIS ADMINISTRATION WAS LOOKING INTO BROADENING LAWS TO REQUIRE REGISTRATION OF HANDGUNS AND TIGHTENING LICENSING REQUIREMENTS FOR GUNSHOP OWNERS HE SAID HE ALSO WAS CONTEMPLATING AN AMNESTY DAY ON WHICH OWNERS OF ILLEGAL GUNS COULD TURN THEM IN WITHOUT PENALTY AT THE MEETING WITH REPORTERS MR CLINTON HAD NOTHING BUT FAVORABLE WORDS FOR THE FEDERAL RESERVE BOARD I HAVE NO CRITICISM OF THE FEDERAL RESERVE BOARD SINCE I'VE BEEN PRESIDENT HE SAID I THINK THAT THEY HAVE BEHAVED RESPONSIBLY THAT IS THE INTEREST RATES HAVE CONTINUED TO COME DOWN THEY'VE DONE NOTHING TO TRY TO BREAK THE RECOVERY HE ADDED THAT HE OPPOSED LEGISLATION TO CURB THE FED'S INDEPENDENCE THE US HE SAID IS BASICALLY WELLSERVED BY A MORE INDEPENDENT FED SEPARATELY MR CLINTON SIGNED THE NORTH AMERICAN FREE TRADE AGREEMENT CAPPING A HARDFOUGHT BATTLE IN CONGRESS FOR ITS APPROVAL THE MEASURE REDUCES TRADE BARRIERS OVER 15 YEARS AMONG THE US MEXICO AND CANADA THIS WHOLE ISSUE TURNED OUT TO BE A DEFINING MOMENT FOR OUR NATION MR CLINTON SAID IN AN EFFORT TO SOOTHE THE BRUISED FEELINGS OF ORGANIZED LABOR HE ALSO PLEDGED TO CREATE THE WORLD'S BEST WORKER TRAINING AND RETRAINING SYSTEM 9312090082 931209 TECHNOLOGY & SCIENCE JAPANESE FUNDS WARM A CONFERENCE OF COLD FUSION' DIEHARDS IN MAUI BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL MAUI HAWAII THE SCIENTIFICALLY BELEAGUERED FEW WHO STILL BELIEVE IN ENERGY FROM ROOMTEMPERATURE NUCLEAR FUSION HAVE BEEN SIPPING GRATEFULLY ON A JAPANESE TONIC AT THIS LUXURY RESORT RESEARCHERS AT THE FOURTH ANNUAL INTERNATIONAL CONFERENCE ON COLD FUSION SKEPTICS CALLED THE FIRST A SEANCE OF BELIEVERS LEARNED THAT THE JAPANESE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MITI IS LAUNCHING A MAJOR RESEARCH EFFORT TO FIND OUT IF COLD FUSION IS REAL KAZUAKI MATSUI OF MITI TOLD THE GATHERING THAT MITI HAS ORGANIZED WHAT IT CALLS THE NEW HYDROGEN ENERGY PROJECT IN COOPERATION WITH KEY JAPANESE COMPANIES AND UNIVERSITIES WITH A PROPOSED BUDGET EQUAL TO 30 MILLION OVER THE NEXT FOUR YEARS THE JAPANESE ARE MAKING THEIR RESEARCH COMMITMENT DESPITE THE EXTREME SKEPTICISM THAT HAS HUNG OVER CLAIMS OF COLD FUSION INITIALLY MADE BY A PAIR OF CHEMISTS IN MARCH 1989 AT A UNIVERSITY OF UTAH NEWS CONFERENCE THE CHEMISTS MARTIN FLEISCHMANN OF BRITAIN AND B STANLEY PONS NOW CONDUCT EXPERIMENTS IN A 50000SQUAREFOOT LABORATORY THE JAPANESE COMPANY TECHNOVA RUNS IN SOUTHERN FRANCE MITI'S NAME FOR THE NEW PROJECT CAREFULLY AVOIDS THE TERM COLD FUSION A THEORY THAT HYDROGEN ATOMS CAN UNDERGO NUCLEAR FUSION AT ROOM TEMPERATURES IN SMALL RODS OF PALLADIUM METAL SATURATED WITH THE HEAVY FORM OF HYDROGEN CALLED DEUTERIUM COLD FUSION BELIEVERS ASSERT THAT THEIR EXPERIMENTS RELEASE MORE ENERGY AS HEAT THAN THEY CONSUME ELECTRICALLY BUT MOST PHYSICISTS SAY THAT THE EXPERIMENTS FAIL TO PRODUCE EVIDENCE OF NUCLEAR REACTIONS AND THEREFORE THE HEAT MEASUREMENTS MUST BE WRONG THE GOAL OF THE JAPANESE NEW HYDROGEN ENERGY PROJECT IS TO CONFIRM AND DEMONSTRATE AN EXCESS HEATGENERATION PHENOMENON AND IF SUCH A PHENOMENON IS CONFIRMED TO MAKE EXCESS HEAT GENERATION CONTROLLABLE DR MATSUI SAID THE PROGRAM IS BEING SUPPORTED BY JAPANESE ELECTRIC UTILITIES AND COMPANIES SUCH AS TOSHIBA CORP AND NIPPON STEEL CORP AND WILL COOPERATE WITH THE UTILITYSUPPORTED ELECTRIC POWER RESEARCH INSTITUTE IN THE US THE MAJOR AMERICAN SOURCE OF FUNDS FOR COLD FUSION EXPERIMENTS MANY RESEARCHERS HERE CLAIM THEY ARE SLOWLY OVERCOMING THE PROBLEMS OF PROVING COLD FUSION TO BE A REAL PHENOMENON BUT THE SKEPTICISM CONTINUES AND AT LEAST ONE PROMINENT COLD FUSION RESEARCHER BACKED OFF FROM HIS 1990 CLAIMS OF HAVING DETECTED SMALL TELLTALE BURSTS OF NEUTRONS REGARDED AS A SIGN OF NUCLEAR REACTIONS IN A COLD FUSION EXPERIMENT IT WAS PHYSICIST STEVEN JONES OF BRIGHAM YOUNG UNIVERSITY IN PROVO UTAH WHOSE OWN WORK ON COLD FUSION SURFACED AT THE SAME TIME AS THAT OF DRS PONS AND FLEISCHMANN DR JONES CLAIMED AT THE TIME TO HAVE ACHIEVED FAR LOWER LEVELS OF ENERGY IN HIS EXPERIMENTS AND WAS ACCORDED CORRESPONDINGLY HIGHER LEVELS OF CREDIBILITY BY THE SCIENTIFIC COMMUNITY DR JONES REPORTED HERE HOWEVER THAT AN IMPROVED NEUTRON DETECTOR HAD CONSISTENTLY FAILED OVER THE LAST TWO YEARS TO DETECT SUCH NEUTRON BURSTS AS HE DESCRIBED IN 1990 THIS INDICATES THE EARLIER CLAIMS WERE BASED ON ARTIFACTS OR ERRORS IN THE DETECTORS HE SAID HE STANDS BY HIS INITIAL 1989 CLAIM THAT EXTREMELY LOW RATES OF COLD FUSION CAN OCCUR MEANWHILE RESEARCHERS AT SRI INTERNATIONAL THE MENLO PARK CALIF CONCERN CARRYING OUT THE LARGEST US COLD FUSION EXPERIMENT UNDER A CONTRACT WITH THE ELECTRIC POWER RESEARCH INSTITUTE ARE BEGINNING TO UNDERSTAND WHY SOME EXPERIMENTS PRODUCE EXCESS HEAT AND OTHERS DON'T REPORTED MICHAEL MCKUBRE HEAD OF THE SRI TEAM DR MCKUBRE SAID THE SRI RESEARCHERS HAVE FOUND THAT THEY CONSISTENTLY GET EXCESS HEAT IF THE LOADING OF THE PALLADIUM ROD REACHES 95 DEUTERIUM ATOMS FOR EACH 100 PALLADIUM ATOMS BUT NO ONE CAN YET FIGURE OUT WHY SOME PIECES OF PALLADIUM WILL LOAD UP WITH THIS CRITICAL LEVEL OF DEUTERIUM ATOMS WHILE OTHERS WON'T AND NOBODY HAS CLEARED AWAY THE BIGGEST CLOUD OVER COLD FUSION THE GENERAL ABSENCE IN THE EXPERIMENTS OF SOME KIND OF NUCLEAR ASH IN THE FORM OF XRAYS GAMMA RADIATION NEUTRONS OR ATOMS OF NEWLY CREATED HELIUM OR TRITIUM A TRIPLY HEAVY FORM OF HYDROGEN DR FLEISCHMANN SAID IN AN INTERVIEW THAT HE AND DR PONS ARE CONTINUING TO GET ABOUT FOUR TIMES AS MUCH POWER OUT OF THE EXPERIMENTS AS IS PUT IN BUT THE AMOUNT OF EXCESS POWER IS NOW UP TO 150 TO 170 WATTS COMPARED WITH THOUSANDTHS OF A WATT FOUR YEARS AGO THIS YEAR WE'RE TRYING TO GET 300 TO 500 WATTS OF EXCESS POWER DR FLEISCHMANN SAID NONE OF THIS IMPRESSED THE CRITICS I STILL DEMAND REPRODUCIBILITY AND I DON'T SEE IT FORTHCOMING SAID JOHN R HUIZENGA A RETIRED PHYSICIST AND CHEMIST WHO LED THE US PANEL THAT SAID IN 1989 IT COULD FIND NO CONVINCING EVIDENCE OF NUCLEAR FUSION IN THE COLD FUSION CLAIMS AND DOUGLAS R O MORRISON A PARTICLE PHYSICIST FROM SWITZERLAND SAID NOTHING IN THE MEETING CHANGED HIS MIND THAT COLD FUSION IS A CASE OF PATHOLOGICAL SCIENCE WHERE SCIENTISTS ARE SEEING ONLY WHAT THEY WANT TO SEE 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 9312090081 931209 XEROX TO CUT 10000 JOBS SHUT FACILITIES CHARGES OF 854 MILLION ARE PLANNED NET LOSS IS LIKELY FOR FULL YEAR BY LAURIE HAYS AND GAUTAM NAIK STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK XEROX CORP SAID IT WILL CUT AT LEAST 10000 JOBS SHUTTER SOME FACILITIES AND TAKE CHARGES TOTALING 854 MILLION LIKELY PRODUCING A LOSS FOR THE YEAR AS THE COMPANY IMPOSES ITS THIRD RESTRUCTURING IN AS MANY YEARS THE 10000 JOBS AMOUNT TO 10 OF XEROX'S WORK FORCE HALF OF THE TOTAL WILL BE SLASHED FROM THE PAYROLL NEXT YEAR WITH THE OTHER HALF COMING BY 1996 XEROX SAID THE COMPANY WILL TAKE A CHARGE OF 700 MILLION RELATED TO THE RESTRUCTURING IT WILL TAKE AN ADDITIONAL CHARGE OF 154 MILLION IN ANTICIPATION OF A SETTLEMENT OF AN ANTITRUST LAWSUIT THE CUTBACKS FOLLOW THE SLASHING OF 2500 JOBS IN THE PAST TWO YEARS IN AN EARLIER REORGANIZATION AND A 778 MILLION CHARGE IN LATE 1992 TO END XEROX'S ILLFATED FORAY INTO FINANCIAL SERVICES THE MAGNITUDE OF THE NEW REDUCTIONS CAUGHT SOME ANALYSTS BY SURPRISE XEROX SHARES SURGED 5625 OR 7 TO CLOSE AT 86375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BUT THE REDUCTIONS DREW FIRE FROM A UNION THAT REPRESENTS ABOUT 10 OF XEROX'S US EMPLOYEES I'M ANGRY THAT WE GOT INTO THIS POSITION SOMEBODY SHOULD HAVE SEEN IT COMING SAID ANTHONY COSTANZA OF THE AMALGAMATED CLOTHING AND TEXTILE WORKERS UNION HE CALLED THE CUTS DEVASTATING ESPECIALLY FOR THE ROCHESTER NY AREA WHICH HAS RECENTLY BEEN HIT HARD BY PLANNED JOB CUTS OF 10000 AT EASTMAN KODAK CO YET XEROX HAD A PARTICULARLY STRONG THIRD QUARTER AND WASN'T SHOWING ANY SIGNS OF AILING FINANCIALLY BEFORE THE TWO CHARGES WERE ANNOUNCED YESTERDAY XEROX WAS EXPECTED TO POST NET INCOME THIS YEAR OF 654 MILLION OR 525 A SHARE REBOUNDING FROM A LOSS OF 1 BILLION IN 1992 BECAUSE OF SPECIAL ITEMS THE NEW CHARGE WILL BE EQUAL TO 682 A SHARE PAUL ALLAIRE XEROX CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT THE LATEST RESTRUCTURING WON'T STEER THE COMPANY AWAY FROM ITS EMPHASIS ON DOCUMENT SERVICES PRINTERS AND COPIERS INSTEAD MR ALLAIRE SAID THE REDUCTIONS TAKE AIM AT ACCELERATING THE FINAL STAGES OF HIS OVERALL PLAN TO IMPROVE XEROX'S COMPETITIVENESS AGAINST RIVALS INCLUDING THE JAPANESE WE ARE GOING TO MAKE THE COMPANY MORE PRODUCTIVE MORE CUSTOMERORIENTED AND BRING NEW PRODUCTS TO MARKET MORE QUICKLY BY TRIMMING SOME OPERATIONS AND INVESTING IN TECHNOLOGY TO IMPROVE THE OUTPUT AT THE REMAINING PLANTS MR ALLAIRE SAID XEROX SAID IT HADN'T YET DECIDED EXACTLY WHAT FACILITIES OR BUSINESS AREAS WILL BE AFFECTED ANALYSTS ESTIMATE THE LATEST CUTBACKS COULD REDUCE XEROX'S COSTS BY 100 MILLION TO 200 MILLION IN THE FIRST YEAR ALONE CURT ROHRMAN OF FIRST BOSTON SAID THE SCALE OF THE RESTRUCTURING INDICATES A FORCEFUL MOVE BY MR ALLAIRE TO BECOME EVEN MORE COMPETITIVE IT'S ON THE ORDER OF CHANGE THAT'S POSSIBLE WHEN YOU REENGINEER YOUR CORPORATION MR ROHRMAN SAID WE ARE JUST NOW STARTING TO SEE THESE TYPES OF RESTRUCTURINGS THESE GUYS ARE AHEAD OF THE CURVE MR ALLAIRE SAID XEROX'S RECENTLY HIRED CHIEF FINANCIAL OFFICER BARRY ROMERIL HAD BEEN WORKING ON THE PLAN SINCE SEPTEMBER MR ROMERIL HAS A REPUTATION FOR BEING AN EFFECTIVE COSTCUTTER FROM HIS DAYS AT BRITISH TELECOMMUNICATIONS LTD WHICH HE LEFT IN JULY MOST OF THE TRIMMING WILL BE MADE THROUGH OUTRIGHT LAYOFFS AND SOME ATTRITION XEROX WON'T OFFER EARLYRETIREMENT INCENTIVES XEROX HAS BEEN ASKING ITS WORKERS TO FIND WAYS TO INCREASE PRODUCTIVITY MR ALLAIRE SAID ASSEMBLYLINE WORKERS HAVE EVALUATED HOW THEY COULD ACHIEVE THEIR WORK FASTER AND BETTER AND HAVE TAKEN SMALL STEPS TOWARD THEIR GOALS XEROX OFFICIALS AND EMPLOYEES HAVE BEEN WORKING ON HUNDREDS OF INITIATIVES WORLDWIDE TO SAVE MONEY AND CUT BACK ON THE PAYROLL MANY SERVICES SUCH AS DIAGNOSING THE REASONS FOR A BROKEN COPIER ARE NOW DONE OVER THE TELEPHONE WITH A REPRESENTATIVE DIRECTING THE REPAIR INSTEAD OF MAKING A SERVICE CALL IN SOME CASES A COMPUTER LINK WITH THE PRODUCT CAN PROVIDE THE REPAIR INFORMATION XEROX HAS BEEN LEADING A GRADUAL BUT FARREACHING TRANSFORMATION IN THE DOCUMENT BUSINESS AWAY FROM OLDLINE COPIERS AND TOWARD COMPUTERS AND DIGITAL TECHNOLOGY IT IS FORMING ALLIANCES WITH MICROSOFT CORP AND OTHER SOFTWARE MAKERS TO INTEGRATE PERSONAL COMPUTERS AND DIGITAL COPIERS AND LET WORKERS COPY AND FAX DOCUMENTS OUT OF THEIR DESKTOP PCS XEROX HAS FAILED TO TRANSFORM SOME OF ITS CUTTINGEDGE TECHNOLOGIES INTO BIGSELLING PRODUCTS FOR ITSELF MOST NOTABLY THE GRAPHICAL USER INTERFACE FOR THE PERSONAL COMPUTER WHICH IT INVENTED BUT XEROX'S LEANER OPERATIONS COULD NOW MAKE IT EASIER FOR THE COMPANY TO COMMERCIALIZE ITS TECHNOLOGY SAID JAMIE KIGGEN ANALYST AT PRUDENTIAL SECURITIES RESEARCH THE COMPANY RECENTLY UNVEILED A NEW SILVERLESS FILM THAT COULD THREATEN KODAK'S DOMINANCE OF THE 18 BILLION GRAPHIC ARTS FILM MARKET AND XEROX'S COMPETITORS ARE AT LEAST A YEAR OR TWO AWAY FROM MATCHING THE COMPANY'S DOCUTECH DIGITAL PRINTING SYSTEM WHOSE OUTPUT MATCHES THE QUALITY OF OFFSET PRINTING MR KIGGEN SAID 9312090080 931209 LEISURE & ARTS TOP 10 PRIMETIME PROGRAMS COMPILED BY NIELSEN MEDIA RESEARCH COPYRIGHT 1993 9312090079 931209 ECONOMY RULES TO SPUR BANK LOANS INVESTMENTS IN LOWERINCOME AREAS ARE PROPOSED BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION FORMALLY PROPOSED RULES TO PROD BANKS TO BOOST LENDING SERVICES AND INVESTMENT IN LOW AND MODERATEINCOME AREAS WINNING GUARDED APPLAUSE FROM BANKS COMMUNITY GROUPS AND CONGRESS THE PROPOSALS ARE DESIGNED TO MEET PRESIDENT CLINTON'S PLEDGE TO INCREASE LOANS FOR HOUSING SMALL BUSINESS AND CONSUMERS IN THESE AREAS WHILE ALSO REDUCING PAPERWORK BURDENS ON BANKS THE NEW RULES WHICH ARE LARGELY SIMILAR TO A DRAFT VERSION CIRCULATED LAST MONTH ARE STILL SUBJECT TO PUBLIC COMMENT AND FINAL REGULATORY APPROVAL THE 1977 COMMUNITY REINVESTMENT ACT SAID FEDERALLY INSURED BANKS AND THRIFTS HAVE A CONTINUING AND AFFIRMATIVE OBLIGATION TO HELP MEET THE CREDIT NEEDS OF THE COMMUNITIES WHERE THEY OPERATE BUT THE CURRENT RULES HAVE BEEN WIDELY CONDEMNED FOR GENERATING MOUNTAINS OF PAPERWORK WITHOUT SPURRING LENDING IN LOW AND MODERATEINCOME NEIGHBORHOODS EUGENE LUDWIG THE COMPTROLLER OF THE CURRENCY SAID THE NEW RULES SHOULD SPUR BILLIONS OF DOLLARS OF LENDING IN AREAS WHERE BUSINESSES AND INDIVIDUALS FREQUENTLY FIND IT DIFFICULT TO GET CREDIT UNDER THE PROPOSALS BANKS WOULD BE JUDGED BY COMPARING THEIR SHARE OF THE LENDING MARKET IN LOW AND MODERATEINCOME AREAS WITH THE MARKET SHARE IN THEIR TOTAL SERVICE AREA IN GENERAL BANKS WHOSE MARKET SHARE OF REPORTED LOANS IN SUCH AREAS SIGNIFICANTLY EXCEEDS THEIR MARKET SHARE IN OTHER AREAS WOULD RECEIVE OUTSTANDING RATINGS WHILE BANKS WITH MARKET SHARES THAT ARE ROUGHLY COMPARABLE IN THE TWO AREAS WOULD GET SATISFACTORY RATINGS AND THOSE THAT HAVE A LOWER SHARE OF THE MARKET IN POOR AREAS THAN IN WEALTHIER AREAS WOULD RECEIVE LESSTHANSATISFACTORY RATINGS BANKS ALSO WOULD BE JUDGED ON THE BRANCHES AND OTHER SERVICES THEY PROVIDE IN LOW AND MODERATEINCOME AREAS AS WELL AS THE INVESTMENTS THEY MAKE IN COMMUNITYDEVELOPMENT INSTITUTIONS AND HOUSING PROGRAMS SPECIALIZED BANKS ESTABLISHED TO RUN CREDITCARD OPERATIONS OR TO CARRY OUT WHOLESALE RATHER THEN RETAIL ACTIVITIES WOULD BE JUDGED ON THEIR INVESTMENT PROGRAMS SMALL BANKS THOSE WITH ASSETS OF LESS THAN 250 MILLION WOULD FACE STREAMLINED EXAMINATION PROCEDURES AND LESS EXTENSIVE DATACOLLECTION REQUIREMENTS THAN LARGE BANKS ABOUT 80 OF THE NATION'S 11000 BANKS HAVE ASSETS BELOW 250 MILLION BUT THESE BANKS ACCOUNT FOR ONLY ABOUT 15 OF THE TOTAL LOANS MADE YESTERDAY BANK REPRESENTATIVES PRAISED THE DIFFERENTIAL TREATMENT FOR SMALL BANKS WHILE CONSUMER GROUPS SAID THE PROPOSAL IS TOO EASY ON SMALL BANKS SEVERAL COMMUNITY AND CONSUMER GROUPS HOWEVER CALLED THE OVERALL POLICY A MOVE IN THE RIGHT DIRECTION UNDER THE PROPOSAL LARGE BANKS WOULD BE REQUIRED TO COLLECT AND MAKE PUBLIC EXTENSIVE INFORMATION ON THE NUMBER OF LOANS THEY PURCHASE MAKE OR DENY FOR HOME PURCHASES HOME IMPROVEMENTS SMALL BUSINESS SMALL FARMS AND TO CONSUMERS THEY WOULD ALSO HAVE TO CODE THE LOANS BY CENSUS TRACT TO GIVE REGULATORS THE INFORMATION THEY NEED TO COMPARE LENDING PATTERNS IN RELATIVELY POOR AND RELATIVELY RICH AREAS ONE PART OF THE PROPOSAL PARTICULARLY APPLAUDED BY BANKERS WOULD GIVE BANKS THE OPTION OF WORKING WITH COMMUNITY GROUPS TO DRAFT THEIR OWN COMMUNITYLENDING GOALS ALONG WITH A PLAN FOR MEETING THOSE GOALS OFFICIALS FROM THE COMPTROLLER'S OFFICE THE FEDERAL DEPOSIT INSURANCE CORP THE OFFICE OF THRIFT SUPERVISION AND THE FEDERAL RESERVE BOARD HAVE WORKED ON THE REGULATIONS FOR MONTHS BANKS ARE EXPECTED TO COMPLAIN ABOUT CERTAIN DATAREPORTING BURDENS PARTICULARLY FOR SMALLBUSINESS LOANS WHILE COMMUNITY GROUPS ARGUE THAT BANKS SHOULD BE FORCED TO PROVIDE EVEN MORE DATA THAN THE REGULATORS ARE PROPOSING THEY WANT BANKS TO REPORT ON LOAN APPLICATIONS DENIALS AND APPROVALS BY RACE AND GENDER CURRENTLY THIS INFORMATION IS REPORTED ONLY ON MORTGAGE LOANS DONALD OGILVIE EXECUTIVE VICE PRESIDENT OF THE AMERICAN BANKERS ASSOCIATION SAID THE TRADE GROUP APPROVED OF THE SIMPLIFIED REQUIREMENTS FOR SMALL BANKS AND THE OPPORTUNITY FOR LARGE BANKS TO WORK OUT THEIR LENDING PLANS WITH COMMUNITY GROUPS HE SAID HOWEVER THAT WE'RE NERVOUS ABOUT THE NEW REPORTING REQUIREMENTS FOR SMALLBUSINESS LOANS IN PARTICULAR UNDER THE NEW RULES A LENDER COULD PAY A HIGH PRICE FOR RECEIVING THE LOWEST COMMUNITYREINVESTMENT RATING CURRENTLY BANKS THAT RECEIVE A LOW RATING CAN BE DENIED PERMISSION TO ACQUIRE ANOTHER BANK OR TO EXPAND SERVICES BANKS THAT DON'T MAKE SUCH APPLICATIONS DON'T FACE A REGULATORY PENALTY REGULATORS WOULD HAVE THE AUTHORITY UNDER THE NEW RULES TO ISSUE CEASEANDDESIST ORDERS AND IMPOSE CIVIL MONETARY PENALTIES ON LENDERS WITH THE LOWEST RATING 9312090078 931209 US SURGICAL CORP SHARPLY EXPANDS COSTCUTTING PLAN BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NORWALK CONN US SURGICAL CORP SHARPLY EXPANDING ITS COSTCUTTING EFFORTS SAID IT WILL TAKE A 125 MILLION FOURTHQUARTER CHARGE TO CUT ITS WORK FORCE 4 TO 7 AND SELL OR CONSOLIDATE OPERATIONS THE MAKER OF SURGICAL STAPLERS AND OTHER MEDICAL EQUIPMENT ALSO SAID IT EXPECTS ITS FIRST ANNUAL LOSS IN 10 YEARS AMID STIFF COMPETITION AND LARGE HOSPITAL INVENTORIES ONCE A DARLING OF INVESTORS US SURGICAL SAID IT EXPECTS LOSSES BOTH FOR THE FOURTH QUARTER AND FOR NEXT YEAR'S FIRST QUARTER EXTENDING LOSSES IN THE PREVIOUS TWO QUARTERS THE COMPANY DECLINED TO GIVE MORE SPECIFIC ESTIMATES IT LAST REPORTED AN ANNUAL LOSS IN 1983 IN 1992 THE NORWALK CONN COMPANY REPORTED FOURTHQUARTER NET OF 379 MILLION OR 64 CENTS A SHARE ON SALES OF 322 MILLION AND REPORTED EARNINGS FOR THE YEAR OF 1389 MILLION OR 232 A SHARE ON SALES OF 12 BILLION IN THIS YEAR'S FIRST QUARTER THE COMPANY EARNED 36 MILLION OR 61 CENTS A SHARE ON SALES OF 3263 MILLION COMPETITION FROM JOHNSON & JOHNSON'S ETHICON DIVISION HURT US SURGICAL MORE THAN THE COMPANY AND ANALYSTS EXPECTED SAID JONATHAN OSGOOD AN ANALYST WITH ALEX BROWN & SONS INC I THINK IT'S INEVITABLE THEY'LL HAVE TO TAKE MORE STEPS TO CUT COSTS HE SAID HE ADDED THAT THE COMPANY EVENTUALLY MIGHT HAVE TO CUT ITS 1000MEMBER SALES FORCE WHICH IS TO REMAIN UNTOUCHED BY THE PRESENT CUTS ACCORDING TO A US SURGICAL SPOKESWOMAN FOR THE YEAR MR OSGOOD ESTIMATED A LOSS OF 177 A SHARE AFTER THE CHARGE COMPARED WITH HIS EARLIER EXPECTATION OF A PERSHARE PROFIT OF 15 CENTS ACCORDING TO US SURGICAL'S CHAIRMAN LEON C HIRSCH INVENTORIES ON HOSPITAL AND DISTRIBUTOR SHELVES ARE STILL INORDINATELY HIGH HE SAID THE COMPANY DOESN'T EXPECT INVENTORIES TO FALL SIGNIFICANTLY UNTIL AFTER NEXT YEAR'S FIRST QUARTER MR OSGOOD SAID HE EXPECTS FALLING INVENTORIES TO HELP THE COMPANY POST A PROFIT OF ABOUT 12 CENTS A SHARE IN 1994 DOWN FROM HIS FORECAST OF 50 CENTS JUST TWO MONTHS AGO US SURGICAL ANNOUNCED PLANS TO LAY OFF 700 OF ITS 8000 EMPLOYEES CUT ITS QUARTERLY DIVIDEND BY 73 AND REDUCE EXECUTIVE PAY THOSE MEASURES WERE COVERED BY A THIRDQUARTER CHARGE OF 6 MILLION THE BULK OF THE FOURTHQUARTER CHARGE WILL COVER THE COSTS OF CONSOLIDATING OPERATIONS PRINCIPALLY IN EUROPE SPOKESWOMAN MARIANNE SCIPIONE SAID THE COMPANY IS SCRAPPING PLANS TO CENTRALIZE SOME EUROPEAN OPERATIONS AT A 380000SQUAREFOOT FACILITY NEAR PARIS AND IS WRITING DOWN THE VALUE OF THAT FACILITY SHE SAID THE COMPANY ALSO PLANS TO DIVEST ITSELF OF PRODUCTION FACILITIES IN GERMANY AND MIGHT CONSOLIDATE SOME CONNECTICUT OPERATIONS THE PLAN ALSO CALLS FOR A REDUCTION OF 300 TO 500 EMPLOYEES LARGELY MANAGEMENT LEVEL WORKERS EXPECTED TO LEAVE THROUGH ATTRITION MS SCIPIONE SAID THE MOST RECENT CUTS ARE EXPECTED TO TAKE SEVERAL MONTHS SOME LAYOFFS MIGHT BE NECESSARY SHE SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE US SURGICAL CLOSED AT 21 DOWN 50 CENTS IN HEAVY TRADING THAT PRICE REPRESENTS A DECLINE OF 74 FROM THE COMPANY'S 52WEEK HIGH OF 7950 A SHARE 9312090077 931209 MARKETING & MEDIA ADVERTISING WILL AYER BUY RINEY TRY ASKING HAL RINEY HIMSELF REPLY 5050' BY KEVIN GOLDMAN HAL RINEY WARNS NOT TO PLACE BETS THAT HIS AD AGENCY WILL BE ACQUIRED BY AYER A PURCHASE VIRTUALLY EVERYONE ON MADISON AVENUE ANTICIPATES NOT JUST YET ANYWAY I WOULD SAY TODAY THAT THERE IS A 5050 CHANCE THAT IT WILL HAPPEN MR RINEY SAID YESTERDAY IN AN INTERVIEW FROM HIS HEADQUARTERS IN SAN FRANCISCO THE AGENCY'S CHAIRMAN AND CHIEF EXECUTIVE WHOSE SMOOTH FOLKSY VOICE IS RECOGNIZABLE IN COMMERCIALS FOR SUCH CLIENTS AS ALAMO RENTACAR ADDED SO DON'T BET YOU WON'T MAKE ANY MONEY YET AYER FOUNDED 124 YEARS AGO AND ONE OF THE LAST OF THE INDEPENDENT GIANTS HAS HIGH HOPES OF SNARING HAL RINEY & PARTNERS STARTED A MERE SEVEN YEARS AGO JERRY J SIANO AYER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY THAT HE PERSONALLY CALLED MR RINEY ABOUT THREE MONTHS AGO TO SEE WHETHER AN ACQUISITION WAS POSSIBLE WE'RE ONLY 50 THERE NOW MR SIANO SAID BUT WE'RE SERIOUS ABOUT GETTING IT DONE WE TURNED DOWN BEING A FINALIST IN THE NATIONAL CAR RENTAL REVIEW THAT SHOWS HOW SERIOUS WE ARE TO BE WITH RINEY IF AYER WERE AWARDED THE NATIONAL ACCOUNT IT WOULD CREATE A CONFLICT WITH RINEY WHICH HAS ALAMO THIS ISN'T THE FIRST TIME AYER HAS GONE AHUNTING LAST YEAR IT HELD PROLONGED SOME WOULD SAY TORTUOUS NEGOTIATIONS WITH KETCHUM COMMUNICATIONS A PITTSBURGH AD AGENCY BUT THOSE TALKS ULTIMATELY COLLAPSED AS BOTH SIDES CITED PHILOSOPHICAL DIFFERENCES ABOUT HOW THE COMBINED AGENCIES WOULD OPERATE AYER WITH DOMESTIC BILLINGS LAST YEAR OF 7544 MILLION NEEDS A CREATIVE JOLT TO LIFT IT FROM ITS TORPOR IT RECENTLY LOST ITS PRESTIGIOUS ROLE AS AMERICAN TELEPHONE & TELEGRAPH'S LEAD AGENCY TO FCB/LEBER KATZ PARTNERS AND THE ACCOUNTS IT HAS WON LATELY WONDER BREAD PEP BOYS BAYER COUGH AND COLD MEDICINE AND WOLVERINE'S FOOTWARE HAVEN'T COMPENSATED FOR SOME RECENT ACCOUNT LOSSES MR SIANO IS QUICK TO POINT OUT THAT AYER IS IN THE FINALS FOR THE PIZZA HUT AND CELLULAR ONE REVIEWS WE HAVE MORE BUSINESS OPPORTUNITIES THAN WE HAVE HAD IN A WHILE HE SAYS CHEERFULLY CRITICS HOWEVER ARE LESS SANGUINE ARGUING THAT HIGH GROWTH IS UNLIKELY FOR AYER UNLESS IT SNAPS UP ANOTHER AGENCY SUCH AS RINEY WHICH HAD BILLINGS LAST YEAR OF 350 MILLION LIKE RINEY AYER IS KNOWN FOR HOMESPUN FEELGOOD ADS FOR EXAMPLE AYER CREATED THE OLD REACH OUT AND TOUCH SOMEONE CAMPAIGN FOR AT&T RINEY CREATED THE INVITING ADS FOR ALAMO WHERE ALL THE MILES ARE FREE THE ACQUISITION WHICH MR SIANO ENVISIONS AS A PARTNERSHIP WOULD SOLVE PROBLEMS FOR BOTH AGENCIES FOR AYER IT WOULD AUGMENT ITS STRONG NEW YORK BASE WITH A FORMIDABLE PRESENCE ON THE WEST COAST AND IT WOULD BRING IN TALENT FROM AN AGENCY CONSIDERED CREATIVELY SOLID FOR RINEY THE MARRIAGE COULD PROVIDE SOME SUPPORT IN ITS ATTEMPTS TO GROW AYER'S FARFLUNG NETWORK OF OFFICES WOULD BE HELPFUL IN CONDUCTING BUSINESS IN THE US AND ABROAD IN AUGUST RINEY MERGED ITS NEW YORK SHOP WITH ANGOTTI THOMAS HEDGE EFFECTIVELY SHUTTING DOWN ITS OWN OFFICE THERE AFTER SEVEN YEARS OF TRYING TO ESTABLISH A BEACHHEAD IN MANHATTAN FURTHERMORE A MERGING OF THE TWO OPERATIONS WOULDN'T RESULT IN ANY CLIENT CONFLICTS FOR INSTANCE AYER HANDLES THE CORPORATEIMAGE ADVERTISING FOR GENERAL MOTORS WHILE RINEY HAS THE ASSIGNMENT FOR SATURN A CAR MANUFACTURED BY GENERAL MOTORS A HEFTY AUTOMOBILE ACCOUNT HAS ELUDED AYER FOR QUITE SOME TIME AND IT WOULD LOVE TO BE INVOLVED WITH THE LIKES OF SATURN MR RINEY WHO IN THE LATE 1950S WORKED AS ART DIRECTOR AT AYER'S OFFICE IN SAN FRANCISCO SINCE CLOSED SAYS HE HAS A GREAT DEAL OF RESPECT FOR AYER PERHAPS MORE THAN SOME IT'S UNCLEAR HOW THE TWO MANAGEMENT TEAMS WOULD MESH AD INDUSTRY OBSERVERS HAVE OFTEN SPECULATED ABOUT 62YEAROLD MR RINEY'S LINE OF SUCCESSION FOR HIS PART 58YEAROLD MR SIANO QUICKLY DISMISSES ANY SPECULATION THAT HE COULD BE OUT THE DOOR VOLUNTARILY OR NOT IF AND WHEN THE RINEY ACQUISITION IS FINALIZED WHY WOULD I LEAVE AT THIS POINT HE ASKS RHETORICALLY WE HAVE NO DEBT AYER IS ON THE OFFENSIVE MR SIANO SAID HE CONSIDERED OTHER AGENCIES BEFORE SETTLING ON RINEY CITING AMMIRATI & PURIS AS AN EXAMPLE INDUSTRY EXECUTIVES DOUBT THAT AMMIRATI WOULD HAVE BEEN INTERESTED AND SENIOR EXECUTIVES THERE COULDN'T BE REACHED FOR COMMENT AS FOR AN AYERRINEY AGENCY MR RINEY SAYS NO FURTHER TALKS ARE SCHEDULED UNTIL NEXT WEEK SINCE WORD LEAKED OUT THAT AYER OPENED DISCUSSIONS WITH HAL RINEY & PARTNERS MR RINEY DISCLOSES THAT HE'S RECEIVED OTHER UNSOLICITED OFFERS BUT IN HIS TRADEMARK MELLIFLUOUS VOICE HE ADDS THAT HE ISN'T INTERESTED DDB NEEDHAM GERALD GERMAIN THE 51YEAROLD VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER AT DDB NEEDHAM SAID HE IS LEAVING THE AGENCY IN APRIL TO PURSUE NEW INTERESTS SUCCEEDING HIM IS KEITH BREMER THE 39YEAROLD TREASURER OF OMNICOM GROUP PARENT OF DDB AND OTHER AGENCIES DDB ALSO SAID KEN KAESS PRESIDENT OF THE AGENCY'S LOS ANGELES UNIT WAS NAMED ONE OF THREE EXECUTIVE VICE PRESIDENTS AND MANAGING PARTNERS IN THE FLAGSHIP NEW YORK OFFICE MR KAESS 39 FILLS THE JOB PREVIOUSLY HELD BY KENT DEFELIECE WHO DIED EARLIER THIS YEAR J WALTER THOMPSON WPP GROUP'S J WALTER THOMPSON NAMED RON BURNS ITS NORTH AMERICAN CHIEF EXECUTIVE TO THE ADDITIONAL TITLE OF GROUP PRESIDENT MR BURNS 49 ASSUMES RESPONSIBILITY FOR THOMPSON'S MEXICO OPERATIONS AND ALONG WITH NORTH AMERICAN CHAIRMAN JIM PATTERSON ITS FLAGSHIP NEW YORK OFFICE 9312090076 931209 LAW S&P IS BACKED IN COURT RULING ON DISCLOSING DATA BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STANDARD & POOR'S CORP AND OTHER FINANCIALDATA PUBLISHERS ARE ENTITLED TO THE SAME CONSTITUTIONAL PROTECTION AS JOURNALISTS A FEDERAL JUDGE RULED AND GENERALLY CAN'T BE REQUIRED TO DISCLOSE INFORMATION THEY GATHER FROM SOURCES THE DECISION IS CONSIDERED AN IMPORTANT VICTORY FOR THE FINANCIALRATINGS INDUSTRY WHICH HAS FACED INCREASING ATTEMPTS BY COMPANIES TO GET COURTORDERED ACCESS TO SUCH INFORMATION IN THIS CASE PAN AM CORP WANTED MATERIAL CONCERNING AN S&P REVIEW OF DELTA AIR LINES' ABORTED PLAN TO FINANCE PAN AM'S BANKRUPTCYCOURT REORGANIZATION PAN AM IS SUING DELTA FOR BACKING OUT OF THAT PLAN LAST SUMMER A BANKRUPTCYCOURT JUDGE IN MANHATTAN ORDERED S&P TO TURN OVER DOCUMENTS RELATED TO ITS MEETINGS CORRESPONDENCE AND OTHER COMMUNICATIONS WITH DELTA REGARDING THE PAN AM DEAL WHEN THE RATINGS AGENCY A DIVISION OF MCGRAWHILL INC REFUSED THE BANKRUPTCY JUDGE ORDERED IT TO PAY CONTEMPTOFCOURT PENALTIES OF 1000 A DAY US DISTRICT JUDGE LORETTA PRESKA HOWEVER REVERSED THE BANKRUPTCY JUDGE FINDING THAT RATINGS AGENCIES FALL UNDER THE BROAD PROTECTIONS OF FREEDOM OF THE PRESS SHE SAID IN HER DECISION THAT S&P WAS FUNCTIONING AS A JOURNALIST BECAUSE IT WAS GATHERING INFORMATION WITH THE INTENT TO DISSEMINATE IT TO THE PUBLIC AS A PUBLISHER OF PUBLICLY DISTRIBUTED FINANCIAL RATINGS ANALYSIS AND COMMENTARY S&P IS AS A MATTER OF LAW DESERVING OF THE FULL BREADTH OF FIRST AMENDMENT SAFEGUARDS JUDGE PRESKA SAID IN HER OPINION ALTHOUGH OTHER COURTS HAVE EXTENDED SOME PRESS PROTECTIONS TO PUBLISHERS OF FINANCIAL DATA LAWYERS SAID JUDGE PRESKA'S RULING IS BROADER AND MORE STRONGLY WORDED THAN ANY PREVIOUS DECISION IN ADDITION INDUSTRY ATTORNEYS SAID THE NEW YORK DECISION BY JUDGE FRESCA WILL PROVE MORE VALUABLE THAN THE OTHERS BECAUSE NEW YORK IS HOME TO THE RATING AGENCIES AND FINANCIAL MARKETS THIS REALLY MAKES CLEAR THAT THE RATING AGENCIES ARE PART OF THE FINANCIAL PRESS SAID VICTOR KOVNER OF NEW YORK LAW FIRM LANKENAU KOVNER & KURTZ ATTORNEY FOR S&P IF THE AGENCIES' DOCUMENTS WEREN'T PROTECTED MR KOVNER SAID IT WOULD HAVE IMPAIRED THE CONFIDENCE OF THE PUBLIC IN THE RATINGS S&P OFFICIALS SAID THAT IF CONFIDENTIALITY WASN'T GUARANTEED COMPANIES WOULDN'T BE AS FORTHCOMING IN THE INFORMATION THEY GIVE TO RATINGS AGENCIES THE RATING PROCESS IS AKIN TO A PENITENT AND A PRIEST SAID WILLIAM P FARLEY ASSOCIATE GENERAL COUNSEL AT MCGRAWHILL IF THE COMPANIES ARE GOING TO TELL US ALL THEIR SINS WE HAVE TO PROTECT THE CONFIDENTIALITY OF THE PROCESS UNDER WHAT IS KNOWN AS JOURNALISTS' PRIVILEGE COURTS CAN'T COMPEL JOURNALISTS OR IN THIS CASE RATINGS AGENCIES TO TURN OVER UNPUBLISHED MATERIAL EXCEPT WHEN THE INFORMATION IS HIGHLY RELEVANT TO THE CASE NECESSARY OR CRITICAL TO MAINTAINING THE CLAIM AND NOT OBTAINABLE FROM OTHER AVAILABLE SOURCES JUDGE PRESKA SAID THAT PAN AM SHOULDN'T EVEN TRY TO GET THE INFORMATION FROM S&P UNTIL THE AIRLINE HAS EXHAUSTED ALL OTHER AVENUES ROBERT LANZA AN ATTORNEY FOR PAN AM'S CREDITORS COMMITTEE WHICH JOINED PAN AM IS SUING DELTA DECLINED TO COMMENT ON WHETHER JUDGE PRESKA'S RULING WOULD BE APPEALED HE SAID HE HADN'T YET DISCUSSED THE POSSIBLE ALTERNATIVES WITH THE COMMITTEE AN ATTORNEY FOR PAN AM COULDN'T BE REACHED FOR COMMENT 9312090075 931209 LEISURE & ARTS BOOKSHELF A LIFE OF SACHEVERELL SITWELL BY ROGER KIMBALL AH THE SITWELLS EDITH OSBERT SACHEVERELL HOW DISTANT THEY SEEM NOW HOW STRANGE HOW IRRELEVANT YET IN THE LATE 'TEENS AND 1920S THESE WAYWARD CHILDREN OF AN ECCENTRIC BARONET TOOK LITERARY LONDON BY STORM IT WAS THEIR POETRY YES BUT ALSO THEIR PERSONAE THEIR CALCULATED AESTHETICISM THEIR COY EXCESSIVELY SELFCONSCIOUS CAMPAIGN AGAINST THE PHILISTINE ALWAYS UPPER CASE MY DEARS AS SARAH BRADFORD NOTES IN SPLENDOURS AND MISERIES A LIFE OF SACHEVERELL SITWELL FARRAR STRAUS & GIROUX 486 PAGES 35 HER CHARMING BIOGRAPHY OF SACHEVERELL THE YOUNGEST LEAST WELLKNOWN OF THE THREE THE SITWELLS MADE GOOD COPY THEY WERE ARISTOCRATS THEY WERE PHYSICALLY OUTSTANDING ALL BEING SIX FOOT OR MORE AND THERE WERE THREE OF THEM EVELYN WAUGH A YOUNGER CONTEMPORARY AND WARY ADMIRER OF THE SITWELLS UNDERSTOOD PERFECTLY THEIR ATTRACTION FOR A DRAB WEARY POSTWAR WORLD THEY RADIATED AN AURA OF HIGH SPIRITS ELEGANCE IMPUDENCE UNPREDICTABILITY WAUGH WROTE THEY DECLARED WAR ON DULLNESS BUT LITERARY FASHION IS A FICKLE THING BY THE 1930S THE CULTURAL TEMPERATURE HAD CHILLED WYNDHAM LEWIS SPOKE FOR THE PREVAILING VIEW WHEN HE WROTE CONTEMPTUOUSLY OF THESE INCORRIGIBLY NAUGHTY' DELICATELY SHELLSHOCKED WISTFULLY AGECOMPLEXED WARTIME PETER PANS THE SITWELLS ENJOYED WHAT BRADFORD CALLS A RENAISSANCE IN THE EARLY 1940S BUT THE DAMAGE WAS DONE INCREASINGLY THEY WERE REGARDED AS PERIOD PIECES CURIOSITIES TODAY THE JUDGMENT OF POSTERITY ECHOES THE FAMOUS DISMISSAL PENNED BY THE CRITIC FR LEAVIS IN THE 1930S THE SITWELLS BELONG TO THE HISTORY OF PUBLICITY RATHER THAN THAT OF POETRY MS BRADFORD NOTES THAT IT IS NOT THE WHOLE STORY NOT QUITE THE WHOLE STORY AMONG THE MANY VIRTUES OF THIS ENTERTAINING BOOK IS HER UNFAILING ABILITY TO APPRECIATE BOTH THE ATTRACTIONS OF THE SITWELLS' PRIVILEGED SILLINESS AND ITS FOLLY AS THE AUTHOR OF BOOKS ON SUBJECTS AS VARIOUS AS PORT WINE AND CESARE BORGIA SHE UNDERSTANDS THAT ECCENTRICITY AND ACHIEVEMENT ARE OFTEN INSEPARABLE ABOUT SACHIE AS HE WAS INVARIABLY CALLED BRADFORD FRANKLY ADMITS THAT HE WAS AN EXTREMELY SOLIPSISTIC WRITER WHO LIKE HIS SISTER EDITH DEPLOYED WORDS FOR THEIR SOUNDS OR TO CONVEY SENSATION RATHER THAN SENSE HE BELONGED TO THE WORLD OF UNICORNS AND HARLEQUINS AND FARFLUNG FANTASIES AT THE SAME TIME SHE EMPHASIZES SACHIE'S UNERRING SENSE FOR THE BEAUTIFUL AND THE UNUSUAL AND AN ABSOLUTE CONFIDENCE IN THE VALIDITY OF HIS OWN AESTHETIC SENSATIONS NOT ONLY IN HIS POETRY HIS FIRST VOLUME THE PEOPLE'S PALACE APPEARED IN 1918 WHEN HE WAS 21 BUT ALSO IN NUMEROUS TRAVEL WRITINGS HIS BOOKS ON MUSICIANS MOZART LISZT SCARLATTI HIS STUDIES OF BAROQUE ART AND HIS UNCLASSIFIABLE ENTERTAINMENTS OF THE IMAGINATION SACHIE USED WRITING PRIMARILY AS AN OCCASION TO EXPLORE THE GEOGRAPHY OF HIS OWN FEELINGS AND PERCEPTIONS HIS AESTHETIC ANTENNAE WERE ALWAYS ATWITTER BUT MOST READERS WHO ACCOMPANY SACHIE THROUGH THE CATHEDRALS AND MUSEUMS OF EUROPE OR THE MUSIC OF LISZT DO SO LESS FOR INFORMATION THAN FOR THE EXHIBITION OF A SENSIBILITY FOR SACHIE ART WAS NOT SO MUCH A REVELATION OF REALITY AS A VACATION FROM ITS INSISTENTLY UNPLEASANT FEATURES LIKE HIS SIBLINGS HE LEARNED TO REGARD HIS FATHER AS A RELIABLE SOURCE OF UNPLEASANTNESS SIR GEORGE RERESBY SITWELL HAD BEEN A FORMIDABLE STUFFED SHIRT FROM A TENDER AGE HIS OWN FATHER DIED WHEN HE WAS TWO WHEN ASKED A LITTLE LATER WHO ARE YOU THE TODDLER REPLIED I AM GEORGE SITWELL BARONET I AM FOUR YEARS OLD AND THE YOUNGEST BARONET IN ENGLAND MS BRADFORD SUGGESTS THAT EMOTIONALLY IT WAS A DISTINCTION HE COULD CLAIM FOR MOST OF HIS LIFE SIR GEORGE MORE OR LESS TYRANNIZED HIS FAMILY UNTIL HIS DEATH THE PRIMARY SCENE OF HIS DOMINION WAS RENISHAW THE 400YEAROLD FAMILY PILE WHOSE BROODING PRESENCE MS BRADFORD COMPARES TO DAPHNE DU MAURIER'S MANDERLEY EDITH WHO RUTHLESSLY DISAPPOINTED HER FATHER BY NOT BEING BORN MALE SUFFERED PARTICULARLY FROM HIS MEDDLING NEGLECT BUT EVERYONE SUFFERED FROM SIR GEORGE'S TIGHTFISTED CONTROL OF THE FAMILY FINANCES NOT THAT HIS FAMILY DID NOT PROVIDE AMPLE GROUNDS FOR PRUDENT WORRY IN THE LATE 1940S SACHIE'S INDEBTEDNESS WAS OVER 20000 POUNDS AN ENORMOUS SUM THAT WAS MANY TIMES HIS ANNUAL INCOME IN THIS SACHIE WAS HIS MOTHER'S SON LADY IDA IN AN EFFORT TO CONCEAL HER PROFLIGACY FROM HER HUSBAND HAD RESORTED TO AN UNSCRUPULOUS BANKRUPT WHO SWINDLED HER OUT OF THOUSANDS OF POUNDS AND INVOLVED HER IN A FRAUD THAT SENT HER TO PRISON FOR THREE MONTHS IN 1915 WHEN SACHIE WAS AT ETON ACCORDING TO MS BRADFORD THE EFFECT OF THIS HUMILIATION WAS DEVASTATING ON SACHIE PSYCHOLOGICALLY SHE WRITES IT LED TO A FLIGHT FROM REALITY FOR THE REST OF HIS LIFE HE WOULD BE UNABLE TO FACE UP TO UNPLEASANT FACTS THIS INCAPACITY WAS BOTH A LIABILITY AND A BLESSING IT CONTRIBUTED MIGHTILY TO SACHIE'S INVETERATE IRRESPONSIBILITY AND SELFCENTEREDNESS BUT IT ALSO UNDERWROTE HIS PECULIAR GENIUS AND ALLOWED HIM AT 91 TO DECLARE THAT IT'S WONDERFUL TO BE ALIVE MS BRADFORD TITLED ONE OF HER CHAPTERS EMBARCATIONS FOR CYTHERA AFTER WATTEAU'S FAMOUS PAINTING SHE REMARKS THAT ITS DEPICTION OF LOVERS EMBARKING FOR THE ISLAND OF VENUS IN SEARCH OF BEAUTY AND PLEASURE WAS A SYMBOL FOR SACHIE'S OWN AESTHETIC JOURNEYS BUT IN CONTEMPLATING THOSE JOURNEYS WE ARE REMINDED THAT IT HAS ALWAYS BEEN A QUESTION WHETHER THE LOVERS ARE NOT IN FACT DEPARTING FROM THE ENCHANTED ISLAND 9312090074 931209 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 CONNECTICUT LIGHT & POWER CO 125 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE DEC 1 2025 PRICED AS 7375S AT 9858 TO YIELD 7492 ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE PRICED AT A SPREAD OF 115 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH A COMPETITIVE BID WON BY LEHMAN BROTHERS INC CONNECTICUT LIGHT & POWER IS A UNIT OF NORTHEAST UTILITIES CONSOLIDATED NATURAL GAS CO 150 MILLION OF DEBENTURES DUE DEC 1 2013 PRICED AS 6625S AT 98873 TO YIELD 6728 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS & CO FAIRFAX FINANCIAL HOLDINGS LTD 100 MILLION OF NOTES DUE DEC 15 2003 PRICED AS 775S AT 99815 TO YIELD 7777 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 210 BASIS POINTS ABOVE TREASURYS RATED TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC HOSPITALITY FRANCHISE SYSTEMS INC 150 MILLION OF SENIOR NOTES DUE DEC 15 1998 PRICED AS 5875S AT 99679 TO YIELD 595 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO IMCERA GROUP INC 100 MILLION OF DEBENTURES DUE DEC 15 2013 PRICED AS 7S AT 99256 TO YIELD 707 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 73 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO INTERPOOL INC 60 MILLION OF CONVERTIBLE EXCHANGEABLE SUBORDINATED NOTES DUE 2018 PRICED TO PAY 525 SEMIANNUALLY ON JUNE 15 AND DEC 15 THE NOTES WILL BE CONVERTIBLE INTO SHARES OF INTERPOOL COMMON STOCK AT 2337 A SHARE AT THE COMPANY'S OPTION THE NOTES COULD BE EXCHANGED IN WHOLE BUT NOT IN PART FOR INTERPOOL'S 525 CONVERTIBLE PREFERRED STOCK ON OR AFTER DEC 15 1994 BUT BEFORE DEC 15 2016 LEAD MANAGER FOR THE OFFERING IS SMITH BARNEY SHEARSON INC NEW JERSEY BELL TELEPHONE CO 100 MILLION OF DEBENTURES DUE DEC 15 2024 PRICED AS 68S AT 98575 TO YIELD 6912 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 15 YEARS WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS RATED TRIPLEA BY MOODY'S AND DOUBLEAPLUS BY S&P THE ISSUE WAS SOLD IN A COMPETITIVE BID WON BY MORGAN STANLEY & CO NEW JERSEY BELL IS A UNIT OF BELL ATLANTIC CORP PNC BANK NA 250 MILLION OF BANK NOTES DUE DEC 15 1994 PRICED INITIALLY AT PAR TO YIELD 364 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES ARE RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PNC BANK NA IS A UNIT OF PNC BANK CORP CONTINENTAL AIRLINES INC INITIAL PUBLIC OFFERING OF SEVEN MILLION PRIMARY SHARES OF CLASS B COMMON STOCK PRICED AT 20 APIECE THROUGH LEAD UNDERWRITER MERRILL LYNCH & CO UTI ENERGY CORP INITIAL OFFERING OF 29 MILLION COMMON SHARES PRICED AT 8 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO WHOLE FOODS MARKET INC 2556520 COMMON SHARES SOLD AT 20 APIECE IN AN OFFERING MANAGED BY ROBERTSON STEPHENS & CO SUN COMMUNITIES INC INITIAL OFFERING OF 51 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC MARYLAND DEPARTMENT OF TRANSPORTATION 288 MILLION REFUNDING BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 4425 YIELDS RANGE FROM 225 IN 1994 TO 46 IN 2005 BOTH MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA MICHIGAN MUNICIPAL BOND AUTHORITY 102 MILLION STATE REVOLVING FUND REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 31 IN 1995 TO 54 IN 2014 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP 7025 MILLION SERIES 1993D AND SERIES 1993E BONDS PRICED BY A BEAR STEARNS & CO GROUP THE 3372 MILLION SERIES 1993D NEWMONEY BONDS ARE PRICED TO YIELD FROM 32 IN 1995 TO 547 IN 2014 YIELDS FOR THE 3652 MILLION SERIES 1993E REFUNDING BONDS RANGE FROM 44 IN 2000 TO 538 IN 2016 AND 2021 BOTH MOODY'S AND S&P HAVE RATED THE BONDS SINGLEA FITCH INVESTORS SERVICE INC HAS ASSIGNED A SINGLEAPLUS RATING THE NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP IS A PUBLICBENEFIT CORPORATION OF THE STATE OF NEW YORK TENNESSEE VALLEY AUTHORITY 15 BILLION TWOPART ISSUE OF POWER BONDS PRICED BY UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 1 BILLION OF BONDS DUE DEC 15 1996 WAS PRICED AS 46S AT 99814 TO YIELD 4667 THE BONDS WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 19 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 500 MILLION OF BONDS DUE DEC 15 2043 WAS PRICED AS 6875S AT 96492 TO YIELD 7133 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993255 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPS TRUST 253 WHICH IS BACKED IN TURN BY 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 353 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 1993254 IS BACKED BY STRIPPED MORTGAGE BACKED SECURITIES TRUST 251 PRINCIPAL ONLY WHICH IS BACKED IN TURN BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 84839 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 343 MONTHS BANCO SAFRA SA BRAZIL 150 MILLION OF 775 EUROBONDS DUE DEC 16 1996 AT ISSUE AND REOFFER PRICE 99842 VIA BEAR STEARNS INTERNATIONAL LTD BONDS YIELD 781 A SPREAD OF 330 BASIS POINTS ABOVE 4375 US TREASURY OF NOVEMBER 1996 FEES ONE PAYABLE SEMIANNUALLY CHEUNG KONG FINANCE CAYMAN LTD HONG KONG PARENT 500 MILLION OF STEPUP FLOATINGRATE EURONOTES DUE JANUARY 2001 AT ISSUE AND REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 60 BASIS POINTS IN FIRST THREE YEARS THEREAFTER RISING TO LIBOR PLUS 70 BASIS POINTS PUT AND CALL OPTION EXERCISABLE AT PAR ON EVERY INTEREST PAYMENT DATE FROM JANUARY 1997 GUARANTOR CHEUNG KONG HOLDINGS LTD FEES 0375 FIRST 3 PLC SPECIALPURPOSE VEHICLE 92 MILLION OF MORTGAGEBACKED FLOATINGRATE EURONOTES DUE OCTOBER 2016 AT ISSUE PRICE PAR VIA BARING BROTHERS & CO REOFFERED AT 9983 NOTES SECURED ON SECOND RESIDENTIAL MORTGAGES ORIGINATED FROM FIRST NATIONAL BANK EXPECTED AVERAGE LIFE FOUR YEARS PAYABLE QUARTERLY AT 0375 POINT ABOVE THREEMONTH POUND LIBOR NOTES CALLABLE AT PAR ON JANUARY 1999 FEES 042 GENERAL ELECTRIC CAPITAL CORP US PARENT 100 MILLION SWISS FRANCS OF 4 PUBLIC BONDS DUE JAN 19 2001 PRICED AT 102625 VIA MERRILL LYNCH BANK FEES 25 GOTHENBURG SWEDISH MUNICIPALITY 120 MILLION SWISS FRANCS OF 4125 PRIVATELY PLACED NOTES DUE JAN 25 1999 PRICED AT 10225 VIA SWISS BANK CORP FEES 15 KLABIN FABRICADORA DE PAPEL E CELULOSE SA BRAZIL 60 MILLION OF 10 EUROBONDS DUE DEC 20 2001 AT ISSUE AND REOFFER PRICE 9889 VIA JP MORGAN SECURITIES LTD BONDS YIELD 1021 TO MATURITY A MARGIN OF 475 BASIS POINTS OVER COMPARABLE US TREASURY PUT OPTION EXERCISABLE ON DEC 20 1998 AT 9881 TO YIELD 101 A MARGIN OF 500 BASIS POINTS OVER COMPARABLE TREASURY GUARANTOR PARENT INDUSTRIAS KLABIN FABRICADORA DE PAPEL E CELULOSE FEES 1125 PAYABLE SEMIANNUALLY LANDESBANK RHEINLANDPFALZ GIROZENTRALE GERMANY 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE DEC 29 2005 AT ISSUE AND REOFFER PRICE 995 VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE SEMIANNUALLY AT 025 POINT BELOW SIXMONTH DOLLAR LIBOR MAXIMUM COUPON 8 MINIMUM 5 FEES 05 LIPPO TREASURY LTD BRITISH VIRGIN ISLANDS HONG KONG PARENT 90 MILLION OF PRIVATELY PLACED CONVERTIBLE 125 EUROBONDS DUE DEC 31 2000 AT PAR VIA SWISS BANK CORP ZURICH GUARANTOR LIPPO LTD HONG KONG CONVERTIBLE INTO LIPPO LTD ORDINARY SHARES FROM FEB 1 1994 TO DEC 15 2000 AT CONVERSION PREMIUM 22 FINAL TERMS FIXED DEC 13 FEES TWO LKB BADENWUERTTEMBERG FINANCE NV GERMAN PARENT 40 BILLION YEN OF 35 EUROBONDS DUE JAN 26 2004 AT ISSUE AND REOFFER PRICE 99668 VIA NOMURA INTERNATIONAL PLC AND MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 354 A SPREAD OF 20 BASIS POINTS OVER SERIES 157 JAPANESE GOVERNMENT BOND GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG FEES 0325 MITSUI USA INC JAPANESE PARENT 10 BILLION YEN OF 34 EUROBONDS DUE APRIL 27 2001 AT ISSUE AND REOFFER PRICE 10031 VIA SAKURA FINANCE INTERNATIONAL LTD BONDS YIELD 335 LAUNCHED OFF BORROWER'S EURO MEDIUMTERMNOTE PROGRAM KEEPWELL AGREEMENT WITH MITSUI & CO FEES 061 NSK LTD JAPAN 20 BILLION YEN OF 31 EUROBONDS DUE MARCH 24 1998 AT ISSUE PRICE 100325 VIA YAMAICHI INTERNATIONAL EUROPE LTD REOFFERED AT PAR TO YIELD 31 FEES 1625 NSK LTD JAPAN 10 BILLION YEN OF 28 EUROBONDS DUE MARCH 24 1998 AT ISSUE PRICE 101575 VIA FUJI INTERNATIONAL FINANCE PLC REOFFERED AT 10025 TO YIELD 2735 PUT OPTION EXERCISABLE AT PAR ON MARCH 24 1997 FEES 1625 SWEDEN SOVEREIGN 50 BILLION YEN OF 35 EUROBONDS DUE JAN 12 2004 AT ISSUE AND REOFFER PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD BONDS YIELD 35 FEES 0325 WORLD BANK SUPRANATIONAL 100 MILLION AUSTRALIAN DOLLARS OF 55 EUROBONDS DUE JAN 15 1997 AT ISSUE PRICE 1009 VIA COMMONWEALTH BANK OF AUSTRALIA AT 994 BONDS YIELD 572 AFTER DEDUCTING FEES OF 15 9312090073 931209 LEISURE & ARTS FILM A YOUNG CON ARTIST OLD MEN ON ICE AND A WEIRD LADY BY JULIE SALAMON QUITE OFTEN THE WORST THING THAT CAN HAPPEN TO A PLAY OF IDEAS IS TO PUT IT ON FILM THOUGHTS THAT SPARKLE IN THE ARTIFICIAL VACUUM OF THEATER CAN SEEM PAINFULLY SELFCONSCIOUS IN THE REALITY OF FILM BUT REWORKING A PLAY TO MAKE IT MORE REALISTIC MORE ACCEPTABLE TO THE CAMERA'S REQUIREMENTS CAN KILL ITS MAGIC SOMETIMES YOU WONDER WHY ANYONE BOTHERS THE ANSWER TO THAT MAY BE FOUND IN SIX DEGREES OF SEPARATION THE CLEVER SCREEN ADAPTATION OF JOHN GUARE'S BRILLIANTLY FUNNY PLAY WORKING FROM MR GUARE'S SCRIPT DIRECTOR FRED SCHEPISI HAS COME UP WITH A KIND OF CINEMATIC THEATRICALITY THAT GIVES FREE REIN TO THE WRITER'S SHREWD BITING OBSERVATIONS ON UPSCALE LIFE IN MANHATTAN AS WELL AS ART RACE CLASS AND FAMILY THIS IS THAT RARE OCCASION THAT A PLAY REALLY WORKS ON THE SCREEN MR SCHEPISI AN INTELLIGENT FILMMAKER HAS ALWAYS BEEN DRAWN TO THE MAGICAL AND THE SPIRITUAL AND HE IS GOOD WITH COMEDY ONE OF HIS BEST MOVIES WAS THE MARVELOUS ROXANNE STEVE MARTIN'S CONTEMPORARY COMIC VERSION OF CYRANO DE BERGERAC IT HELPS TOO THAT MR GUARE'S SATIRE HAS A HILARIOUS PLOT FIRED BY THE KIND OF ABSURDITY THAT CAN ONLY BE FOUND IN REAL LIFE MR GUARE HEARD ABOUT A YOUNG BLACK MAN A STREET HUSTLER WHO CONNED A WEALTHY NEW YORK COUPLE INTO BELIEVING THAT HE WAS AN IVY LEAGUE SCHOOL CHUM OF THEIR CHILDREN AND THAT HE WAS SIDNEY POITIER'S SON MR GUARE UNDERSTOOD THE MANY COMIC RAMIFICATIONS OF THIS PARTICULAR HUSTLE AND IT SEEMS THAT HE HAS MINED EVERY ONE OF THEM IN HIS FICTIONAL VERSION OF THE EVENT THE RICH COUPLE THE KITTREDGES ARE HUSTLERS THEMSELVES FLAN DONALD SUTHERLAND THE HUSBAND IS AN ART DEALER WHO PUTS TOGETHER FABULOUS DEALS OF DUBIOUS PROPRIETY THROUGH ERUDITE SLEIGHT OF HAND LIKE PAUL WILL SMITH THE YOUNG BLACK CON ARTIST FLAN INSINUATES HIMSELF INTO HIS CLIENTS' GOOD GRACES WITH FLATTERY AND INTELLIGENCE HE FIGURES OUT WHAT THEY WANT FROM HIM AND THEN HE DELIVERS IT OUISA STOCKARD CHANNING IS THE ABSURDIST IN THE FAMILY SHE LIKES THE HIGHSTAKES GAME SHE AND FLAN PLAY BUT SHE IS ALWAYS AWARE THAT IT IS AT SOME LEVEL RIDICULOUS PAUL HAS MUCH TO OFFER THE KITTREDGES HE GIVES THEM A CHANCE TO INGRATIATE THEMSELVES WITH THEIR CHILDREN BY HELPING ONE OF THEIR FRIENDS HE SHOWS UP AT THEIR APARTMENT BLEEDING PRETENDING TO BE A MUGGING VICTIM HE IS BLACK THUS SATISFYING SOME HYPOTHETICAL DESIRE THEY'VE HAD AS RICH WHITE LIBERALS TO BEFRIEND A BLACK PERSON AND HE IS THE PERFECT BLACK PERSON FOR THEM IVY LEAGUE POLITE AND HE IS IF NOT A CELEBRITY HIMSELF THE SON OF A CELEBRITY AND NOT JUST ANY CELEBRITY BUT SIDNEY POITIER THE SYMBOL OF RACIAL HARMONY FOR THE KITTREDGE'S GENERATION PAUL TURNS OUT TO BE NONE OF THOSE THINGS EXCEPT POLITE BUT WHAT HE IS TURNS OUT TO BE MORE COMPLICATED THAN THE OBVIOUS THERE IS A MURKY PSYCHOLOGICAL UNDERPINNING TO HIS CON GAME HE DOESN'T TAKE ENOUGH MONEY FROM THE KITTREDGES OR THE OTHER PEOPLE HE FOOLS TO MAKE MONEY THE EXPLANATION FOR HIS CON FOR MR GUARE THE WAY THE KITTREDGES AND THE OTHER PEOPLE TAKEN IN BY PAUL TELL THE STORY IS AS IMPORTANT AS THE STORY ITSELF AND WHERE AND HOW THE STORY IS TOLD THE KITTREDGES TELL THE STORY OVER AND OVER IN VARIOUS SETTINGS IN THEIR LUXE APARTMENT IN ART GALLERIES IN RESTAURANTS FILMMAKERS ALWAYS TALK ABOUT MAKING THE LANDSCAPE A CHARACTER USUALLY HOWEVER IT JUST LOOKS LIKE SCENERY WITH HIS MISCHIEVOUS CUTTING HOWEVER MR SCHEPISI HAS MANAGED TO MAKE THE KITTREDGE'S ENVIRONMENTS IF NOT ANOTHER CHARACTER AT LEAST PART OF THE MOVIE'S IRONIC UNDERCURRENT AND HE HAS BEAUTIFULLY ILLUSTRATED SOME OF MR GUARE'S MUSINGS WITH RESONANT PICTURES WHEN FOR EXAMPLE FLAN KITTREDGE RECALLS ASKING HIS CHILDREN'S SECOND GRADE TEACHER WHY THE ART HER PUPILS PRODUCED WAS SO WONDERFUL COMPARED WITH THE FIRST GRADE AND THE THIRD GRADE CLASS HER ANSWER I KNOW WHEN TO TELL THEM TO STOP IN THESE LUXURIOUS PLACES THE KITTREDGES MEET PAUL'S OTHER VICTIMS AND THEIR STORY BECOMES PART OF THE KITTREDGES' STORY THAT IS THE SERIOUS PART OF THE PLAY THAT EVERYONE IS CONNECTED TO EVERYONE ELSE WITHIN SIX DEGREES THAT BEHIND COCKTAIL PARTY ANECDOTES ARE REAL PEOPLE WITH COMPLICATED LIVES MR GUARE AND THE STRONG CAST MANAGE TO MAKE THESE CHARACTERS AND THEIR SITUATION SO VIVID THE POIGNANCY DOESN'T RING FALSE THE JOKES ARE NEVER CHEAP ONCE IN A WHILE A MOVIE COMES ALONG THAT SEEMS PERFECTLY TARGETED FOR THIS NEWSPAPER'S DEMOGRAPHICS I'M TALKING ABOUT GRUMPY OLD MEN THE NEW JACK LEMMONWALTER MATTHAU COMEDY ABOUT ELDERLY NEIGHBORS WHO HAVE SPENT MOST OF THEIR LIVES FIGHTING WITH ONE ANOTHER THE MOVIE CATCHES UP WITH THEM WHEN A FOXY MIDDLEAGED WOMAN NAMED ARIEL ANNMARGRET MOVES ACROSS THE STREET OPENING A NEW FRONT FOR THEIR ONGOING BATTLES DESPITE THE NUMEROUS PREDICTABLE JOKES ABOUT GERIATRIC SEX THE MOVIE IS VERY APPEALING FOR NUMEROUS SURPRISING REASONS MANY OF THEM HAVE TO DO WITH ICE FISHING IN MINNESOTA THE FILM IS SET IN A SMALL TOWN IN MINNESOTA IN THE WINTER THE GRUMPY OLD MEN ARE RETIRED AND SPEND THEIR DAYS FISHING INSIDE LITTLE SHACKS SET UP ON THE ICE THEY DROP THEIR LINES THROUGH HOLES DRILLED THROUGH THE ICE FLOOR THEN LISTEN TO MUSIC OR READ OR DRINK BEER WHILE THEY WAIT I LIKED SEEING THIS ODD COMMUNITY OF WINTERTIME FISHERMEN CARRYING ON THEIR FEUDS AND WISECRACKING IN THESE LITTLE SHACKS ON THE ICE IN A GENTLE WAY THE FILM GETS ACROSS THE WAY THE RELATIONSHIP BETWEEN THESE MEN IS CONNECTED TO THIS STRANGE PLACE AND ITS FROZEN LEISURE THE DIRECTOR DONALD PETRIE IS VERY GOOD AT GETTING ACROSS A SENSE OF COMMUNITY HE DID IT WELL WITH THE WORKINGCLASS GIRLS IN MYSTIC PIZZA AND HE DOES IT AGAIN WITH THESE OLD MEN IN MINNESOTA THE SCRIPT BY 29YEAROLD MARK STEVEN JOHNSON A MINNESOTAN HAS A NICE WHIMSICALITY HE'S A YOUNG MAN WHO RESPECTS HIS ELDERS WELL ENOUGH NOT TO CONDESCEND TO THEM NOT SURPRISINGLY THE ACTORS ARE GREAT ALL AROUND ESPECIALLY BURGESS MEREDITH AS THE LEMMON CHARACTER'S LUSTY 94YEAROLD FATHER AND ANNMARGRET CAN STILL GIGGLE GIRLISHLY WHEN SHE MAKES AN ANGEL IN THE SNOW AND NOT SEEM AT ALL SILLY A DANGEROUS WOMAN IS WHAT THEY CALL AN ACTOR'S MOVIE THIS MEANS THE ACTORS ARE GIVEN THE CHANCE TO PLAY PEOPLE WHO ARE OFF IN SOME WAY MARTHA DEBRA WINGER THIS MOVIE'S WEIRD HEROINE IS A NEARSIGHTED CHILD IN A GROWNUP BODY THE KIND OF CHARACTER WHOSE DEVOTION TO TRUTH MUST ALWAYS LEAD TO CATASTROPHE FRANCES BARBARA HERSHEY THE AUNT WHO TAKES CARE OF HER IS NOT MUCH OLDER THAN MARTHA SHE'S INVOLVED WITH A MARRIED MAN THE POLITICIAN SHE WORKS FOR MACKEY GABRIEL BYRNE THE HANDYMAN DROPS INTO THEIR LIFE HE'S A SPIRITUAL DRUNK WITH STRONG SEXUAL URGES MOVING AT A LANGUID PACE THE MOVIE'S ACTION OFTEN FEELS FORCED SIMPLY AN EXCUSE FOR ELABORATELY CONTRIVED EXPRESSIONS OF MADNESS OF RAGE OF SORROW VIDEO TIP JOHN GUARE WROTE THE SCRIPT FOR A WONDERFUL MOVIE LOUIS MALLE'S ATLANTIC CITY A FANTASY ABOUT CASINOS AND LOVE BAD LUCK AND THE SMELL OF FISH BURT LANCASTER AS AN OLD NUMBERS RUNNER AND SUSAN SARANDON AS A CROUPIERINTRAINING ARE TERRIFIC 9312090072 931209 WHO'S NEWS KARCHER IS OFFERED A POST IF HE REFINANCES HIS DEBT ANAHEIM CALIF THE BOARD OF CARL KARCHER ENTERPRISES INC AS EXPECTED SAID CARL N KARCHER WOULD BE NAMED CHAIRMAN EMERITUS OF THE FASTFOOD COMPANY IF HE COMPLETES A COMPLICATED REFINANCING OF HIS 23750000 PERSONAL BANK DEBT THAT IS IN DEFAULT MR KARCHER 76 YEARS OLD WAS OUSTED AS CHAIRMAN OF THE COMPANY WHICH OPERATES THE CARL'S JR CHAIN IN A NASTY BATTLE WITH THE BOARD IN OCTOBER THE DEBT TO UNION BANK OF SAN FRANCISCO IS SECURED BY 39 MILLION SHARES OF COMPANY STOCK MR KARCHER OWNS TO RETIRE THE LOAN MR KARCHER AND INVESTORS WILLIAM P FOLEY II AND RON LANE HAVE PLANNED A LIMITEDPARTNERSHIP DEAL THAT IS EXPECTED TO BE COMPLETED TOMORROW MR FOLEY IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FIDELITY NATIONAL FINANCIAL INC AN IRVINE CALIF TITLE INSURER AND MR LANE IS A NEWPORT BEACH CALIF REALESTATE INVESTOR CARL KARCHER ENTERPRISES HAS INVITED MESSRS FOLEY AND LANE TO JOIN THE BOARD WHICH NOW HAS SEVEN MEMBERS PROVIDED THAT MR KARCHER'S DEBT IS REFINANCED MR KARCHER WHO FOUNDED THE COMPANY 52 YEARS AGO REMAINS ON THE BOARD A SPOKESMAN FOR MR KARCHER SAID THE FORMER CHAIRMAN LOOKS FORWARD TO WORKING WITH THE NEW BOARD IN REBUILDING CARL'S JR INTO THE SUCCESSFUL CHAIN IT DESERVES TO BE 9312090071 931209 MARKETSCAN WINE IS BOTTLED IN MORE SHAPES AND SIZES BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LIKE KETCHUP AND DETERGENT YOUR FAVORITE CHARDONNAY MAY SOON COME IN A SIZE FOR EVERY OCCASION FOLLOWING THE LEAD OF OTHER CONSUMERPRODUCT COMPANIES US WINERIES HAVE STARTED PAYING MORE ATTENTION TO PACKAGE SIZES WINE MAKERS ARE FINDING OUT SAYS JEANMICHEL VALETTE OF HAMBRECHT & QUIST INC SAN FRANCISCO THAT PACKAGING CAN BE A REAL IMPORTANT PART OF A PRODUCT'S APPEAL NOT JUST A PRETTIER LABEL BUT A FUNCTIONALLY DIFFERENT PACKAGE SO IF YOU'RE TAKING A LUNCH BREAK ON THE SKI SLOPES YOU CAN OPEN UP A 187 MILLILITER SCREWCAP BOTTLE THE SIZE THAT USED TO BE FOUND ONLY ON PLANES BUT CAN NOW BE BOUGHT IN SUPERMARKETS AND AT MOUNTAINTOP SKI CAFES IF YOU'RE EXPECTING LOTS OF RELATIVES FOR THE HOLIDAYS YOU CAN TRY A FIVELITER BAGINABOX AND FOR AN INTIMATE DINNER WITH A TEMPERATE DATE UNCORK A 500 MILLILITER BOTTLE WHICH HOLDS FOUR GLASSES INSTEAD OF THE SIX IN THE STANDARD 750 MILLILITER BOTTLE THE SIZES THEMSELVES AREN'T NEW BAGINABOX FOR INSTANCE WAS COPIED FROM AUSTRALIA MORE THAN A DECADE AGO AS AN ALTERNATIVE PACKAGE FOR JUG WINE BUT LATELY SOME OF THE BIGGER WINERIES HAVE BEEN SPENDING MORE TO MARKET A VARIETY OF SIZES OTHERS HAVE BRANCHED OUT OF THE STANDARD BOTTLE FOR THE FIRST TIME AND SOME WINERIES ARE GIVING THE PACKAGES AN UPSCALE TWIST USING THEM FOR VARIETAL WINES WHOSE SHARE OF THE US MARKET HAS RISEN STEADILY VARIETAL WINES SUCH AS CHARDONNAYS ARE IDENTIFIED WITH A PARTICULAR GRAPE WHILE JUG OR GENERIC WINES ARE BLENDED THE USE OF SUCH THINGS AS APPROPRIATE PACKAGING IS ESSENTIAL FOR THE SURVIVAL OF THE WINE INDUSTRY SAYS LARRY WILLIAMS OF JORDAN WINERY SONOMA CALIF WHICH IN MARCH BEGAN SELLING ITS 1991 VINTAGE CHARDONNAY AND CABERNET SAUVIGNON IN 500 MILLILITER BOTTLES DRUNK DRIVING LAWS AND WARNINGS ABOUT ALCOHOL'S HEALTH DANGERS HAVE LED AMERICANS TO CUT BACK THEIR DRINKING WINE CONSUMPTION FELL TO 170 GALLONS PER CAPITA IN 1992 FROM 181 GALLONS IN 1988 SAYS THE WINE INSTITUTE SAN FRANCISCO A DECLINE OF 4 IS EXPECTED THIS YEAR THE PICTURE LOOKS BRIGHTER IN DOLLAR TERMS BECAUSE THE SHIFT IN DEMAND TO VARIETALS FROM LESS EXPENSIVE GENERIC WINES HAS INCREASED DOLLAR SALES BUT EVEN BY THIS YARDSTICK GOMBERG FREDRIKSON & ASSOCIATES IN SAN FRANCISCO EXPECTS SALES OF CALIFORNIA TABLE WINES TO BE FLAT THIS YEAR AS THEY ADOPT MORE USERFRIENDLY PACKAGING WINERIES ARE BETTING THAT CONSUMERS WILL TRADE IMAGE AND STATUS FOR CONVENIENCE AND VALUE CONVENIENCE IS CERTAINLY THE CATCHWORD FOR MARKETERS OF MINIBOTTLES WHICH ARE PRICED AT ABOUT 125 TO 140 EACH AND USUALLY SELL IN FOURPACKS THE BOTTLES ARE GETTING WINE INTO NEW PLACES LIKE TINY RESTAURANTS AND DELIS FOR GLEN ELLEN WINERY SONOMA CALIF THE SIZE IS ANOTHER WAY TO GET EXPOSURE ON THE RETAIL SHELF SAYS TIM WALLACE FORMER MARKETING DIRECTOR THE BENZIGER FAMILY RECENTLY SOLD THE WINERY TO HEUBLEIN INC IF SMALL SIZES SELL BIG SIZES ARE DOING EVEN BETTER THIS MAY SEEM TO CONFLICT WITH THE TREND TOWARD DECLINING CONSUMPTION BUT WINERIES SAY LARGER SIZES ARE MORE CONVENIENT FOR SOCIAL GATHERINGS FOR REGULAR IMBIBERS NEW CLOSURES KEEP THE WINE FRESHER OVER A LONGER PERIOD SUTTER HOME IN ST HELENA CALIF WHICH STARTED SELLING 15 LITER SIZES IN AUGUST USES SHORTER BOTTLES THAT FIT BETTER IN REFRIGERATORS AND COME WITH A TWISTOFF ALUMINUM TOP WINERIES HAVE TURNED TO MAGNUMS OR THE 15 LITER BOTTLE TO LURE FRUGAL YUPPIES AS WELL AS JUGWINE DRINKERS WHO ARE TRADING UP TO VARIETALS ANOTHER MOTIVE AN OVERSUPPLY OF WINE HAS FORCED MANY PREMIUM WINERIES TO LOWER PRICES TO COMPETE SAYS JAMES FOX A SAN FRANCISCO CONSULTANT AND LARGER SIZES ARE A WAY TO CUT PRICES WITHOUT SEEMING TO BUT ROGER TRINCHERO SUTTER HOME'S PRESIDENT SAYS THE DISCOUNT ISN'T MUCH ABOUT 50 CENTS OFF THE PRICE OF TWO 750S SO FAR THIS YEAR EIGHT OF THE TOP 10 NEW DOMESTIC WINE PRODUCTS IN SUPERMARKETS HAVE BEEN IN MAGNUMS SAYS INFORMATION RESOURCES INC'S INFOSCAN SERVICE ABOUT 15 HAVE BEEN INTRODUCED SINCE MARCH THEN THERE'S BAGINABOX WHICH AFTER LANGUISHING FOR YEARS NOW GARNERS BRISK SALES WHEN WINE IS POURED FROM THE THREETO FIVELITER PACKAGE THE METALLIZED PAPER AND PLASTIC BAG COLLAPSES AROUND THE REMAINDER KEEPING OUT AIR THAT SPOILS THE WINE SAYS WINE GROUP INC RIPON CALIF PRICES RANGE FROM 999 TO 1699 FOR A VARIETAL WINE IN A FIVELITER BOX WHILE THE BAGINABOX PACKAGING HARDLY CONJURES UP TRADITIONAL IDEAS ABOUT WINE WINE GROUP IS TRYING TO POLISH ITS PRODUCT'S IMAGE TWOTHIRDS OF ITS BOXWINE BUSINESS NOW CONSISTS OF LOWEND VARIETALS THREE YEARS AGO ALL ITS BOXES HELD GENERIC WINE AGGRESSIVE ADVERTISING HAS HELPED SALES TOO SAYS RICH CARTIERE OF THE WINE BUSINESS INSIDER SONOMA CALIF WINE GROUP SPENT 10 MILLION IN THE PAST TWO YEARS TOUTING BOX WINES THAT'S A BIG DEAL IN THE WINE INDUSTRY HE SAYS MEANWHILE A FEW PIONEERING WINERIES ARE PROMOTING A SIZE THAT THEY SAY IS NEITHER TOO BIG NOR TOO SMALL THE 500 MILLILITER BOTTLE JORDAN WINERY'S MR WILLIAMS SAYS THE SIZE APPROVED FOR USE IN THE US IN 1991 IS CLOSER TO THE PERCAPITA CONSUMPTION OF THE DINING COUPLE THAT PROVIDES SOME SAVINGS FOR CONSUMERS BECAUSE THEY DON'T HAVE TO BUY MORE THAN THEY CAN DRINK BUT ACCEPTANCE IS A LONG WAY OFF COMPETITION FROM 375 MILLILITER OR HALF BOTTLES WHICH ARE ALSO MAKING INROADS IN RESTAURANTS IS A BIG OBSTACLE RESTAURANTS AND RETAILERS SAY MORE WINERIES WILL HAVE TO PROMOTE THE BOTTLE SIZE BEFORE THEY WILL CARRY IT NOT EVERYBODY BELIEVES THE PACKAGES MEET A CONSUMER NEED MICHAEL KAPON PRESIDENT OF ACKER MERRALL & CONDIT CO SAYS THE MINIBOTTLE AND BAGINABOX ARE GIMMICKS SUITABLE ONLY FOR POPCULTURE WINE HE NOTES THAT AFFORDABLE GADGETS LIKE 10 VACUUM PUMPS ALLOW WINE TO BE STORED AFTER UNCORKING JOHN SHELDON A WINE EDUCATOR IN NEW YORK WORRIES THAT THE USE OF VERY SMALL BOTTLES AND PLASTIC OR METAL CONTAINERS WILL RUIN THE TASTE BUT THOMAS HENICKKLING ASSOCIATE PROFESSOR OF OENOLOGY AT CORNELL UNIVERSITY SAYS THAT IF MADE RIGHT SUCH CONTAINERS WON'T HARM WINE BESIDES HE SAYS IN THE US MOST WINES ARE BOUGHT AND CONSUMED WITHIN A FEW DAYS WHY NOT MAKE IT MORE CONVENIENT FOR A MAJORITY OF PEOPLE TO HAVE THEIR WINES 9312090070 931209 LEISURE & ARTS THE GALLERY TWO MUSEUM SHOWS SURMOUNT ITALIAN CRISIS BY FREDERIKA RANDALL BOLOGNA ITALY ON A DAZZLING LATE OCTOBER MORNING ROWS OF DIGNIFIEDLOOKING ELDERLY MEN SIT FACING SOUTH AT CAFE TABLES ON BOLOGNA'S CENTRAL PIAZZA MAGGIORE STORING UP THE UV RAYS LIKE SOLAR BATTERIES VETERANS OF 70 SOME WINTERS UNDER THE BLEAK PO VALLEY FOG THESE GENTLEMEN REMEMBER HOW THE KIDS TENDING THE FREEZING HERDS IN THE FIELDS USED TO WARM THEIR BARE FEET IN THE STEAMING COW PATS AND THEY CAN TELL YOU THE COMING DUSKY GLOOM IS NO JOKE THAT'S WHY THEY'RE STOCKING UP ON SUNSHINE WHILE THEY SIT BACK TO SAVOR ONE MORE TIME THE BUZZ OF THE STREET LIFE THE RED AND OCHER LIGHT WARMED BY THE ROOF TILES AND TERRA COTTA WITH A SMALL FLOURISH OF CIVIC PRIDE ONE OF THEM POINTS OUT THE LOCATION OF THE JUSTOPENED MUSEUM DEDICATED TO GIORGIO MORANDI IN THE CITY HALL ACROSS THE SQUARE IN PALAZZO D'ACCURSIO WHILE ANOTHER INDICATES WHERE I'LL FIND THE LUDOVICO CARRACCI SHOW AT THE CIVIC ARCHAEOLOGICAL MUSEUM A FEW STEPS OFF THE OTHER SIDE OF THE PIAZZA CIVIC PRIDE IT'S A TOUGH MOMENT FOR ALL THAT AS ITALY GROANS AND THREATENS TO CRACK UNDER THE MANY PAST SINS OF MALGOVERNO BAD GOVERNMENT BUT BOLOGNA IS ONE CITY WHERE THE PUBLIC ADMINISTRATION SHINES WHERE SERVICES AND AMENITIES WORK WHERE PRIDE IN SHORT IS JUSTIFIED AND WITH TWO ATTRACTIVE NEW MUSEUMS THE MORANDI AND THE MUSEUM OF MEDIEVAL ART MAJOR EXHIBITS LIKE THE ONE ON CARRACCI AND AMBITIOUS PLANS TO ADAPT THE FORMER STATE TOBACCO WORKS INTO A NEW HOME FOR THE MUNICIPAL MODERNART GALLERY THE CITY GOVERNMENT IS PROVING IT HAS A KNACK FOR ARTS MANAGEMENT AS WELL AS FOR MUNICIPAL SERVICES WORTHY OF A VISIT ALL BY ITSELF THE EXHIBIT DEVOTED TO CARRACCI 15551619 IS SPONSORED BY BOLOGNA'S NATIONAL PICTURE GALLERY AND THE KIMBELL ART MUSEUM AND WILL TRAVEL TO THE KIMBELL IN FORT WORTH TEXAS AFTER IT CLOSES HERE ON SUNDAY LUDOVICO WAS ONE OF A TRIO OF CARRACCIS INCLUDING AGOSTINO AND HIS MORE FAMOUS COUSIN ANNIBALE WHO IN THE LATE 16TH CENTURY DECORATED MANY MANY YARDS OF CHURCH AND PALACE WALLS HERE IN THE FAMILY'S NATIVE CITY ANNIBALE WOULD MOVE ON TO ROME THIS SHOW ILLUSTRATES LUDOVICO'S VAST PRODUCTION RANGING FROM PRESCRIBED MANNERIST RELIGIOUS SUBJECTS TO A FRESCO CYCLE ON JASON AND MEDEA CHARACTERISTIC SOMBER HUES AND A NATIVE PO VALLEY NATURALISM INFLUENCED BY THE VENETIANS GAVE THE STAYATHOME CARRACCI A PARTICULAR INTEREST OF HIS OWN ESPECIALLY IN A HARSH LATE FLAGELLATION AND IN THE MARVELOUS TROIKA OF SANT'ANGELO SAN FRANCESCO AND SAN DOMENICO HUDDLED IN A CONSPIRATORIAL POSE AS FOR MORANDI 18901964 HE WAS AN ARTIST WHOSE EGO CAST SO SMALL A SHADOW HE IS EASY TO UNDERRATE AND HARD TO BUILD A LEGEND AROUND THIS RETIRING FIGURE WHO WAS BORN AND DIED IN THIS CITY RANKS AMONG ITALY'S FOREMOST MODERN PAINTERS YET AFTER A BRIEF YOUTHFUL DIP INTO FUTURISM AND A METAPHYSICAL PERIOD IN THE 1920S HE VEERED OFF ON AN EXTREMELY PERSONAL TACK LEAVING OTHERS TO FIGURE OUT WHERE HE BELONGS IN THE PANORAMA OF MODERN ART TO COMPLICATE THINGS FURTHER HIS SUBJECTS WERE IMPOSSIBLY TACITURN APART FROM SOME LANDSCAPES MORANDI DID MOSTLY REPEATED STILL LIFES PORTRAITS ONE IS TEMPTED TO SAY OF A FAVORITE GROUP OF HOUSEHOLD BOTTLES TINS AND VASES OBJECTS WITH SO LITTLE CACHET THAT EVEN FRIENDLY CRITICS GRAB FOR THE TERM PETIT BOURGEOIS BUT THE NEW MORANDI MUSEUM 200 WORKS INCLUDING 59 PAINTINGS 11 WATERCOLORS AND 75 ETCHINGS IN A 15ROOM SPACE NICELY CARVED OUT OF THE SPREADING RENAISSANCE WING OF PALAZZO D'ACCURSIO IS DESTINED TO REFUTE THE VIEW THAT MORANDI WAS MERELY A MINOR PAINTER OR A REPETITIOUS ONE THE MUSEUM'S COLLECTION THE CENTERPIECE OF WHICH IS A LARGE GIFT OF ARTWORKS TO THE CITY FROM THE ARTIST'S SISTER IS SCANT ON THE '20S AND '30S BUT STRONG ON THE POSTWAR PERIOD IT SHOWS MORANDI'S ALMOST SPIRITUAL POWERS OF CONCENTRATION AS HE APPLIED THEM TO THE THINGS OF THIS WORLD HIS VARYING COMPOSITIONS OF VESSELS IN EARTH TONES AND WHITE ARE CHARGED WITH A SUPERNATURAL ENERGY THAT SEEMS TO MAKE THEIR ATOMIC PARTICLES DANCE THE RESTLESS ENERGY ALL BUT INVISIBLE IN REPRODUCTIONS OF THESE WORKS DEPENDS ON PROPER LIGHTING WHICH THIS GALLERY OFFERS AND THE CHANCE FOR VIEWERS TO INSPECT THE BUSY TRACKS OF THE BRUSH STROKES THAT CREATE THE FLAT AND CURVED PLANES OF THE IMAGES AS WELL AS THE VERY AIR HE PAINTED AROUND THEM OVER THE DECADES THOSE FIRM PLANES SEEM TO WAVER AND GROW MORE TENUOUS OR MORE FLUID SO THAT OILS DONE IN THE LAST FEW YEARS OF MORANDI'S LIFE COME TO RESEMBLE THE EXTRAORDINARY WATERCOLORS OF THE SAME PERIOD JUST BERRYCOLORED STAINS ON CRISP WHITE PAPER DELIGHTFUL OVERALL THE MUSEUM HAS A FEW DETAILS THAT DON'T WORK THE ENTRANCE IS HARD TO FIND AND A SINGLE ELEVATOR WITH A CAPACITY OF 11 IS FAR TOO SMALL TO HANDLE THE CROWDS I SAW ON A WEEKEND NEVER MIND TAKE THE ELEGANT HERRINGBONE BRICK STAIRWAY ATTRIBUTED TO BRAMANTE TO THE GROUNDFLOOR COURTYARD WHERE YOU CRUNCH OVER A LAYER OF RICE ON YOUR WAY OUT SHADES OF THE WEDDINGS PERFORMED HERE DESPITE THIS EFFECTIVE SHOWCASE MORANDI WILL PROBABLY REMAIN HARD TO LOVE FOR THOSE WHO LIKE THEIR ARTISTS TO BE HOTHEADS AND FIREBRANDS INSTEAD HIS SOFTVOICED APPROACH OFFERS LESSONS IN MODESTY TO QUOTE UMBERTO ECO IN A SPEECH INAUGURATING THE MUSEUM A QUALITY THAT ALSO GOES FOR THE BRIGHT CULTIVATED PROVINCIAL CITY OF BOLOGNA MS RANDALL IS A WRITER IN ROME 9312090068 931209 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN PC SURGE PROTECTOR SALES CLIMB BUT SOME DEVICES MAY BE REDUNDANT ELECTRONICS MAKERS CHURN OUT PRODUCTS CURTIS MANUFACTURING IN JAFFREY NH JUST ADDED 10 NEW MODELS RETAILERS PUSH THE GOODS AND SOME UTILITIES MARKET THEIR OWN PROTECTION AGAINST VOLTAGE SPIKES BUT COMPAQ FOR ONE NOTES THAT SINCE MID'92 ITS COMPUTERS HAVE HAD BUILTIN PROTECTION STILL MANY CONSUMERS FIND THE DEVICES A MUST A MONROEVILLE PA RADIO SHACK WITH 12 TO 15 MODELS PRICED FROM 7 TO 70 SAYS SALES HAVE RISEN 20 TO 30 OVER LAST YEAR RETAILERS CARRY MODELS RANGING FROM A SINGLEOUTLET DEVICE FOR A FEW DOLLARS UP TO 150 SYSTEMS POTOMAC ELECTRIC POWER CO RENTS SURGE PROTECTORS FOR 12 AND 22 A MONTH THAT OFFER BATTERYBACKUP OF 15 AND 30 MINUTES NEXT ON THE HORIZON FROM UTILITIES WHOLEHOUSE PROTECTION THERE IS NO BLACK MAGIC JUST TAILORING THE SURGE PROTECTORS TO MEET A HOME'S VARIED NEEDS SAYS MAREK SAMOTYJ OF THE ELECTRIC POWER RESEARCH INSTITUTE IN PALO ALTO CALIF A CHEEKY AD FOR CURTIS DEVICES SHOWS ITS PRESIDENT STRAPPED INTO A MOCK ELECTRIC CHAIR SHIELDED BY ITS PROTECTOR OFF THE CUFF NO LONGER COLLECTORS ARE MASSING TO CULTIVATE THEIR HOBBY THE NATIONAL CUFF LINK SOCIETY GROWS TO 3200 MEMBERS IN TWO YEARS THANKS LARGELY TO PROMOTION BY EUGENE KLOMPUS PRESIDENT AND A COLLECTOR SINCE HE WAS 12 YEARS OLD THE PROSPECT HEIGHTS ILL GROUP HAS A ZILLION CATEGORIES OF COLLECTORS MR KLOMPUS SAYS IT'S A FAMILY ACTIVITY HE ADDS BUT ARE CUFF LINKS A BIG DEAL IN COLLECTIBLES THAT REMAINS TO BE SEEN SAYS TERRY KOVEL OF KOVELS' ANTIQUES AND COLLECTIBLES PRICE LIST IN CLEVELAND STILL MS KOVEL NOTES THE PEZ GROUP THE CIGARBAND GROUP THE BEADED PURSE GROUP GOT STARTED THE SAME WAY A PENCHANT FOR FRENCH CUFFS HELPS SHE SAYS INDEED CAROL KONOP OWNER OF THE SHIRT STORE IN NEW YORK SAYS SALES OF HER CUSTOMMADE SHIRTS WITH FRENCH CUFFS HAVE CLIMBED 20 IN THE PAST SIX YEARS THE MASS MARKET HAS CAUGHT ON TO FRENCH CUFFS SHE SAYS AND WITH THE CUFFS COMES THE NEED FOR THE LINKS FROM MODERN TO ANTIQUEY SHE SAYS RAISE A GLASS AND THE PROFITS URGE RESTAURANTS WITH NOVEL ALCOHOL PROMOS NEW YORK'S MONTRACHET FIGURES HALF A GLASS OF A COSTLY AFTERDINNER BRANDY IS BETTER THAN NONE SO IT POURS HALFGLASSES OF CORDIALS THAT USUALLY SELL FOR 6 TO 35 A GLASS CALVADOS IS VERY EXPENSIVE BUT YOU DON'T NEED THAT MUCH SAYS WINE DIRECTOR DANIEL JOHNNES THE RITZCARLTON SAN FRANCISCO HOTEL ROLLS A BLUELIT VODKA CART INTO ITS LOBBY LOUNGE WITH 16 ICY PRICEY BRANDS AND DRINK SALES RISE ABOUT 18 A SECOND CART IS ON THE WAY SOME RESTAURANTS SUCH AS SQUARE ONE IN SAN FRANCISCO TOUT HALFGLASSES OF EXPENSIVE VINTAGE WINES THE TACTIC KEPT US FROM LOSING WINE SALES AS PEOPLE DRINK LESS SAYS SOMMELIER PETER GRANOFF FRED HALPERT OF BRAVA TERRACE ST HELENA CALIF IN ZINFANDEL COUNTRY DREAMS UP RIBS AND ZIN NIGHT AND WINTER DINNER VOLUME NEARLY TRIPLES DRINKS ACCOUNT FOR 20 TO 30 OF SALES AT FULLSERVICE RESTAURANTS SAYS THE NATIONAL RESTAURANT ASSOCIATION THE HALFGLASS STRATEGY CAN ADD UP TO MORE THAN THE PRICE OF A BOTTLE SAYS MORT HOCHSTEIN OF NATION'S RESTAURANT NEWS POUCH SLOUCHES US CONSUMERS DON'T COTTON TO REFILLS FOR LIQUID DETERGENTS AND SUCH IN STANDUP POUCHES SAYS PACKAGING MAGAZINE EUROPEANS AND CANADIANS LONG USED TO BUYING MILK AND JUICE IN POUCHES ARE MORE ACCEPTING OF THE REFILLS MENOPAUSE IS DISCUSSED AT WORK MORE OPENLY AMONG WOMEN AND MEN SAYS A REPORT OF A SURVEY BY WYETHAYERST LABORATORIES A DIVISION OF AMERICAN HOME PRODUCTS CORP THE WOMEN POLLED SAID THEY BELIEVE THEY ARE HANDLING MENOPAUSE WELL DESPITE THE HOT FLASHES MOOD SWINGS AND FATIGUE AIRFARE HOSTAGES WHO ARE FORCED TO STAY OVER A SATURDAY NIGHT ON BUSINESS TRIPS IN ORDER TO GET CHEAP FARES FIND A BREAK AT NOVOTEL NEW YORK THE HOTEL'S SATURDAY NIGHT SURVIVAL KIT INCLUDES A 5 COUPON FOR A PHONE CALL HOME PARING NONPROFIT BOARDS MAKES SENSE TO MANY BUT POLITICS CAN BE STICKY IN A SECTOR WHERE IT ISN'T UNCOMMON FOR A BOARD TO LIST 100 MEMBERS DOWNSIZING SPARKS A GROWING NUMBER OF INQUIRIES SAYS NANCY AXELROD HEAD OF THE NATIONAL CENTER FOR NONPROFIT BOARDS WASHINGTON LARGE UNWIELDY BOARDS ARE NOT ONLY EXPENSIVE THEY CAN PUT POWER IN THE HANDS OF A FEW COMMITTEE MEMBERS BUT SHRINKING CAN TAKE TIME AND MAY POSE PROBLEMS WHEN DIRECTORS ARE BIG FUNDRAISERS THE AMERICAN LUNG ASSOCIATION TOOK A COUPLE OF YEARS TO LAY PLANS BEFORE CUTTING ITS BOARD IN 1990 TO 27 MEMBERS FROM AS MANY AS 130 THE NEW BOARD MAKES QUICKER BETTER DECISIONS SAYS LUNG ASSOCIATION OFFICIAL SUZANNE BLISS THE FORMER BOARD MEMBERS NOW COMPRISE A HOUSE OF DELEGATES THAT MEETS ANNUALLY TO NETWORK AND DISCUSS ISSUES STILL SOME OF THE 116 LOCAL LUNG GROUPS MISS THE OLD WAY OF HAVING MORE VOICES ON THE NATIONAL BOARD SAYS MRS BLISS THE AMERICAN ASSOCIATION OF MUSEUMS PLANS TO CUT ITS BOARD TO 21 FROM 75 IT'S VERY DIFFICULT TO HAVE A DISCUSSION WITH 75 PEOPLE SAYS EDWARD ABLE JR THE GROUP'S EXECUTIVE DIRECTOR BRIEFS SAMI INC TIBURON CALIF OFFERS A BIG WATERPROOF BIB FOR COMMUTERS WHO DRIBBLE COFFEE AND DRIVE ELSEWHERE ON THE SHIRT FRONT ONE OF THE TOP SELLERS IN AMERICAN AIRLINES' INFLIGHT GIFT CATALOG IS A TIEBAR WITH A PULLDOWN CELLOPHANE SHADE THAT PROTECTS CRAVATS FROM SPILLS 9312090067 931209 HEARD ON THE STREET BEARISH JAPANESE INCITE FOREIGN STAMPEDE OF BULLS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FOREIGN INVESTORS ARE RUSHING IN WHERE THE JAPANESE FEAR TO TREAD SHRUGGING ASIDE A 19 DECLINE IN THE TOKYO MARKET SINCE OCTOBER FOREIGNERS INCLUDING US INVESTMENT AND RETIREMENT FUNDS HAVE RECENTLY SNAPPED UP JAPANESE STOCKS WORTH A NET 215 BILLION IN THE SAME PERIOD JAPANESE COMPANIES AND PRIVATE INVESTORS HAVE SOLD OFF SHARES VALUED AT A NET 384 BILLION FOR FOREIGN BARGAIN HUNTERS THE TOKYO MARKET HAS ALL THE HALLMARKS OF A CLASSIC STOCKMARKET BUYING OPPORTUNITY WHEN THE SENTIMENT IS THIS BAD MY EYES START TO SPARKLE SAYS ELIZABETH ALLAN WHO RUNS THE JAPAN FUND FOR NEW YORK'S SCUDDER STEVENS & CLARK FOREIGN INVESTORS CAN PLAY THE JAPANESE MARKET BOTH THROUGH MUTUAL FUNDS AND AMERICAN DEPOSITARY RECEIPTS OVER THE PAST FEW YEARS MANY BIG JAPANESE COMPANIES HAVE MOVED TO LIST THEIR SHARES IN THE US AS ADRS WHICH TRADE ON US STOCK EXCHANGES JUST LIKE ANY OTHER STOCK WHAT INTRIGUES BULLISH FOREIGN FUND MANAGERS MOST IS THE EXTREME PESSIMISM PLAGUING JAPAN DURING THE PAST TWO MONTHS JAPANESE ECONOMISTS AND STOCK ANALYSTS HAVE TURNED INCREASINGLY BEARISH EVEN NOMURA SECURITIES ONCE THE MARKET'S BIGGEST CHEERLEADER NOW HAS ANALYSTS WHO PREDICT THE NIKKEI MAY HIT 12000 ON WEDNESDAY IT CLOSED AT 1650795 DOWN 39554 POINTS IN THE MORNING TRADING SESSION THURSDAY THE NIKKEI ROSE 30623 TO 1681418 THE SOUR MOOD IS A GOOD SIGN CONTRARIANS ARGUE THE JAPANESE ARE IGNORING THE POSITIVE NEWS ABOUT JAPAN AND THAT MEANS THERE ARE BARGAINS IN THE MARKET WHAT THESE FOREIGN BUYERS SEE IS A POWERFUL ECONOMY WITH FUNDAMENTAL STRENGTH WHICH IN THE FUTURE WILL BOAST SOME VERY PROFITABLE COMPANIES PARTICULARLY IN THE ELECTRONICS SECTOR EVEN SO WHY SHOULD SOME FOREIGNERS LIKE JAPAN IF THE LOCALS DON'T FOR ONE THING FOREIGNERS HAVE LESS OF THEIR TOTAL ASSETS INVESTED HERE SO THEY ARE MORE WILLING TO RISK BUYING INTO A FALLING MARKET AND WITH STOCKS IN THE US EUROPEAN AND OTHER ASIAN MARKETS AT NEARRECORD LEVELS INTERNATIONAL FUND MANAGERS ARE ON THE PROWL FOR BARGAINS TOKYO OFFERS SOME THEY SAY SO FAR THE FOREIGN BET ON TOKYO HASN'T WORKED OUT AS BADLY AS IT MIGHT SEEM BECAUSE MANY OF THE JAPANESE STOCKS THAT FOREIGNERS OWN HAVE BEEN RELATIVELY GOOD PERFORMERS FOR INSTANCE SUPERMARKET GIANT ITOYOKADO WHICH TRADES ON THE NASDAQ STOCK MARKET AS AN ADR HAS RECENTLY SCORED MODEST GAINS DESPITE THE PLUNGE IN THE TOKYO MARKET ITOYOKADO HAS 209 OVERSEAS OWNERSHIP MUCH HIGHER THAN FOREIGNERS' 5 STAKE IN THE OVERALL MARKET FOREIGNERS ARE ALSO FOCUSING ON ELECTRONICS MANUFACTURERS MS ALLAN LIKES SOME OF JAPAN'S BETTERKNOWN ELECTRONICS EXPORTERS INCLUDING SONY AND CANON BOTH OF WHICH TRADE ON US MARKETS SHE FORECASTS A WEAKER YEN OVER THE NEXT YEAR JAPAN'S CURRENCY HAS ALREADY FALLEN 6 FROM ITS HIGH IN AUGUST AND THAT SHOULD BOOST JAPAN'S EXPORT COMPETITIVENESS IF THE YEN WEAKENS A LOT OF JAPAN'S BOMBEDOUT BLUE CHIPS WILL START TO LOOK PRETTY GOOD MS ALLAN SAYS BOTH SONY AND CANON ARE GOOD SOLID COMPANIES THAT HAVE BEEN BURNED BY THE YEN JOHN ALKIRE PRESIDENT OF MORGAN STANLEY ASSET MANAGEMENT BELIEVES THE MARKET IS IN THE FINAL STAGE OF A BEAR MARKET THAT BEGAN FOUR YEARS AGO HE WARNS THAT THE NIKKEI COULD FALL TO 14300 EVEN LOWER BUT HE SAYS HE'S ALREADY ACCUMULATING STOCK IT COULD BE SIX MORE WEEKS OR SIX MONTHS BUT WE'RE NEAR THE END WITH THE JAPANESE DUMPING STOCKS INDISCRIMINATELY GOOD COMPANIES ARE MOVING LOWER WITH BAD ARGUE THE BULLS MR ALKIRE TRACKS STOCKS THAT EITHER TRADE BELOW THE VALUE OF THEIR UNDERLYING ASSETS OR ARE AT LOW MULTIPLES COMPARED WITH THE AMOUNT OF CASH THEY GENERATE BY BOTH COUNTS HE SAYS HITACHI ELECTRONICS IS A BUY HE'S ALSO KEEN ON JAPANESE COMPANIES THAT ARE CUTTING COSTS IN THE FACE OF JAPAN'S ECONOMIC DOWNTURN MR ALKIRE CITES NISSAN MOTOR WHICH IS CLOSING FACTORIES CUTTING OUT ALL THE OVERTIME IT'S LIKE CHRYSLER 15 YEARS AGO OMRON A MAKER OF ELECTRONIC COMPONENTS IS ANOTHER COSTCUTTER SAYS MARK FAWCETT WHO MANAGES SEVERAL JAPANESE FUNDS FOR INDOSUEZ GARTMORE ASSET MANAGEMENT JAPAN LTD THEY CAUGHT ON QUICKLY TO JAPAN'S DOWNTURN SO THEY CUT THEIR CAPITAL SPENDING AND REDUCED HIRING THEIR RECURRING PROFITS HAVE FALLEN 75 OVER THE PAST TWO YEARS BUT NOW THEY'RE SEEING EARNINGS GROWTH MR FAWCETT DESPITE BEING BEARISH ON THE OVERALL MARKET IS STILL BETTING HEAVILY ON CONSUMER ELECTRICAL COMPANIES LIKE SONY AND PIONEER ELECTRONIC WAGERING THE YEN WILL WEAKEN IN THE COMING YEAR HE ALSO THINKS CELLULAR TELECOMMUNICATIONS WILL BOOM IN ASIA AND IS LOADING UP ON RELATED JAPANESE COMPANIES LIKE CELLULARPHONE PARTS MAKERS TOYO COMMUNICATION EQUIPMENT AND KYOCERA EVEN THE BULLISH FUND MANAGERS ARE GIRDING FOR A DIFFICULT MARKET AHEAD IN JAPAN AND SAY THERE ARE PLENTY OF STOCKS TO AVOID WE'VE NEVER BEEN BIG ON THE BANKS IN JAPAN SAYS SCUDDER'S MS ALLAN SHE RECKONS NOW IS NO TIME TO START WITH ITS VIOLENT MOOD SWINGS THE TOKYO MARKET ISN'T FOR THE FAINTHEARTED MS ALLAN SAYS SHE EXPECTS A ROLLERCOASTER JAPANESE STOCK MARKET IN THE COMING WEEKS BUT SAYS PEOPLE WHO CAN STOMACH A LITTLE VOLATILITY SHOULD BE IN THIS MARKET THERE ARE GOOD COMPANIES HERE 9312090066 931209 MARKETING & MEDIA NOTED TV NEWS GENERAL ELECTRIC CO'S NBC NEWS AND NIPPON TELEVISION SAID THEY AGREED TO CREATE A WIDERANGING GLOBAL NEWSGATHERING PARTNERSHIP THE AGREEMENT WHICH TAKES EFFECT JAN 1 WILL GIVE NIPPON TELEVISION ACCESS TO NBC NEWS CREWS AND TECHNOLOGY IN THE DIVISION'S CAIRO FRANKFURT AND TEL AVIV BUREAUS WHILE NBC NEWS WILL BE ABLE TO USE NTV'S RESOURCES IN BEIJING SEOUL AND TOKYO NTV WILL CONTINUE AS AN INTERNATIONAL AFFILIATE OF NBC NEWS CHANNEL NBC'S 24HOUR AFFILIATE NEWS SERVICE INTHEAIR RADIO INFLIGHT PHONE CORP SAID IT ENTERED INTO AN EXCLUSIVE AGREEMENT WITH CAPITAL CITIES/ABC INC'S ABC RADIO NETWORKS TO OFFER AIRLINE PASSENGERS 12 CHANNELS OF LIVE NEWS SPORTS ENTERTAINMENT AND MUSIC PROGRAMMING THE 24HOUR AUDIO SERVICE FLIGHTLINK ONTHEAIR WILL PROVIDE TALKRADIO PROGRAMMING FROM SOURCES SUCH AS NEW YORK'S WABCAM AND LOS ANGELES'S KABCAM 9312090065 931209 POLITICS & POLICY WHITE HOUSE MAY SPUR STATE MASSTRANSIT PLANS WASHINGTON THE CLINTON ADMINISTRATION IS EXPECTED TO ANNOUNCE IT IS WORKING ON A TRANSPORTATION INITIATIVE THAT COULD ENCOURAGE STATES TO SPEND MORE MONEY ON MASS TRANSIT INSTEAD OF HIGHWAYS WHILE THE ADMINISTRATION'S PLAN TO DEVISE A SOCALLED NATIONAL TRANSPORTATION SYSTEM ARE STILL PRELIMINARY THE INTENT IS TO SPUR STATES TO CHOOSE TRANSPORTATION PROJECTS THAT FIT INTO A LARGER PLAN INSTEAD OF BUILDING HIGHWAYS SIMPLY BECAUSE FUNDS ARE AVAILABLE ADMINISTRATION OFFICIALS SAID THE ADMINISTRATION'S INITIATIVE COULD BE THE START OF A DRIVE TO REPLACE THE SWEEPING 1991 INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT THAT LAW WHICH EXPIRES IN 1997 GAVE STATES SOME FLEXIBILITY IN SPENDING ABOUT 80 BILLION ON HIGHWAYS OR ON OTHER USES RANGING FROM BUYING BUSES AND RAILCARS TO BUILDING BICYCLE LANES BUT LESS THAN 3 OF THE MONEY APPROPRIATED SO FAR HAS BEEN USED FOR NONHIGHWAY PURPOSES ACCORDING TO THE GENERAL ACCOUNTING OFFICE TRANSPORTATION SECRETARY FEDERICO PENA IS EXPECTED TO SUBMIT AN UNALTERED NATIONAL HIGHWAY SYSTEM PLAN TO CONGRESS TODAY 9312090063 931209 WHAT'S NEWS BUSINESS AND FINANCE XEROX PLANS TO CUT AT LEAST 10000 JOBS OR 10 OF ITS WORK FORCE SHUTTER SOME FACILITIES AND TAKE 854 MILLION IN CHARGES PROBABLY PRODUCING A LOSS FOR THE YEAR AS THE COMPANY IMPOSES ITS THIRD RESTRUCTURING IN AS MANY YEARS THE NEWS SENT XEROX SHARES UP 5625 OR 7 TO 86375 THE FED OFFERED AN UPBEAT SURVEY OF REGIONAL ECONOMIC CONDITIONS ADDING TO MOUNTING EVIDENCE THAT THE US ECONOMY IS IMPROVING SIGNIFICANTLY NEARLY EVERYWHERE BUT CALIFORNIA RETAILERS SAID SALES PICKED UP AFTER THANKSGIVING AND THEY ARE OPTIMISTIC ABOUT CHRISTMAS THE FED FOUND THE SEC IS INVESTIGATING TRADING IN VIACOM STOCK BEFORE AND AFTER ITS ACQUISITION ACCORD WITH PARAMOUNT INCLUDING PURCHASES BY VIACOM'S REDSTONE AND WMS INDUSTRIES IN WHICH REDSTONE HAS A MAJOR STAKE ITT PLANS TO SPIN OFF ITS TIMBER AND PAPER UNIT TO CONCENTRATE ON FASTERGROWING HIGHERRETURN BUSINESSES ANALYSTS PROJECTED THAT THE NEW COMPANY RAYONIER WILL HAVE A MARKET VALUE OF ABOUT 900 MILLION LOTUS AND IBM ENDED A SECRET PACT IN WHICH LOTUS GAVE IBM A PORTION OF THE REVENUE FROM ITS NOTES SOFTWARE LOTUS ALSO AGREED TO DEVELOP MORE SOFTWARE THAT RUNS ON IBM'S OS/2 PERSONAL COMPUTER OPERATING SYSTEM TRADE NEGOTIATORS INCHED TOWARD COMPLETION OF A WORLD TRADE PACT WHILE CONTINUING LASTMINUTE BICKERING OVER MOVIES FINANCIAL SERVICES AND RELIEF AGAINST THE DUMPING OF GOODS BELL ATLANTIC AND AT&T MAY HAVE TO MAKE SIGNIFICANT CONCESSIONS TO GAIN THE JUSTICE DEPARTMENT'S ANTITRUST CLEARANCE TO BUY TELECOMMUNICATIONS AND MCCAW RESPECTIVELY THE DOW JONES INDUSTRIALS HIT A RECORD FOR A SECOND DAY ON A SURGE IN ECONOMICALLY SENSITIVE STOCKS BOND PRICES HELD STEADY THE INDUSTRIALS CLIMBED 1565 TO 373453 S&P'S 500STOCK INDEX FELL 047 TO 46629 TOKYO STOCKS PLUMMETED 23 ON GROWING CONCERN THAT JAPAN'S GOVERNING COALITION COULD COLLAPSE JEOPARDIZING EFFORTS TO RESCUE THE ECONOMY NISSAN IS TAKING THE EXTRAORDINARY STEP OF BUYING BACK AND CRUSHING SOME OF ITS 1987 TO 1990 MINIVANS AFTER THREE UNSUCCESSFUL RECALLS TO FIX THEM THE WHITE HOUSE FORMALLY PROPOSED RULES TO PROD BANKS TO BOOST LENDING SERVICES AND INVESTMENT IN LOW AND MODERATEINCOME AREAS MASSACHUSETTS GENERAL AND BRIGHAM & WOMEN'S INTEND TO MERGE IN A BID TO SLASH COSTS BY 20 AND CREATE THE NATION'S LARGEST HOSPITAL NEWS CORP DROPPED AN UNPOPULAR PLAN TO CREATE A SHARECAPITAL STRUCTURE THAT INCLUDED SUPER VOTING STOCK LITTON INDUSTRIES SAID ITS NONDEFENSE SPINOFF WILL BUY DRESSER INDUSTRIES' 295 STAKE IN WESTERN ATLAS FOR 558 MILLION IN CASH AND NOTES MEDICAL CARE AMERICA AGREED TO SHOW ITS BOOKS TO SUITOR SURGICAL CARE AFFILIATES TAKING ANOTHER RELUCTANT STEP IN THE DIRECTION OF A MERGER AGREEMENT MEDICAL CARE ALSO DISCLOSED THAT IT HAS BEEN APPROACHED BY OTHER PARTIES INTERESTED IN SETTING UP A DEAL BONDS LEHMAN BROTHERS TREASURY INDEX 558962 OFF 392 COMMODITIES OIL 1459 A BARREL OFF 11 CENTS DOW JONES FUTURES INDEX 13858 UP 010 SPOT INDEX 12426 OFF 011 DOLLAR 10888 YEN UP 143 17075 MARKS UP 00055 9312090062 931209 LETTERS TO THE EDITOR ADVICE FOR RUSSIA'S REAL FRIENDS AS ADVISER TO THE RUSSIAN GOVERNMENT JEFFREY SACHS IS NO DOUBT JUSTIFIABLY ANXIOUS TO SEE HIS RECOMMENDATIONS IMPLEMENTED BY RUSSIA ARTICLE ON THE IMF AND RUSSIA OCT 25 IT IS ALL THE MORE IMPORTANT THEREFORE THAT MR SACHS'S ADVICE BE BASED ON A PROPER APPRECIATION OF THE ECONOMIC SOCIAL AND POLITICAL COMPLEXITIES OF RUSSIA AND ON A KEENER KNOWLEDGE AND UNDERSTANDING OF ACTUAL IMF POLICIES AND PRACTICES THAN HE DISPLAYS IN THE ARTICLE FIRST THE IMF DOES NOT AS HE STATED RIGIDLY PURSUE DEFICIT REDUCTION OR FREE EXCHANGE RATES WE DO EMPHASIZE HOWEVER BOTH IN RUSSIA AND ELSEWHERE THAT PRINTING MONEY TO FINANCE A BUDGET DEFICIT LEADS TO INFLATION AS REGARDS EXCHANGE RATES STABILIZATION IS CERTAINLY POSSIBLE WITH FLEXIBLE EXCHANGE RATES AS SHOWN SUCCESSFULLY BY LATVIA AND LITHUANIA WHICH HAVE FOLLOWED THE RIGHT FINANCIAL POLICIES IN ADDITION DESPITE WHAT MR SACHS SAYS THE IMF HAS SUPPORTED FINANCIALLY MANY SUCCESSFUL ADJUSTMENT PROGRAMS INCLUDING SEVERAL WITH WHICH HE HIMSELF WAS ASSOCIATED THAT HAVE OPTED FOR A FIXEDEXCHANGERATE POLICY FOR THIS TO WORK THE GOVERNMENT MUST BE ABLE TO MAKE TIGHT BUDGET AND MONETARY POLICIES STICK FROM THE OUTSET OTHERWISE THE FIXED EXCHANGE RATE WILL BECOME QUICKLY OVERVALUED LEADING TO A LOSS OF EXPORT COMPETITIVENESS A FLOOD OF IMPORTS AND CAPITAL FLIGHT AND HENCE TO PAINFUL ECONOMIC CONTRACTION OF THE VERY SORT THAT WE ALL WISH TO AVOID IS THERE ANY SERIOUS GROUP OF ECONOMISTS THAT DISPUTES THESE BASIC ECONOMIC PRINCIPLES AND HAVE FIXED EXCHANGE RATES BEEN SO SUCCESSFUL IN PRACTICE THE SAD EXPERIENCES OF MANY IMF MEMBER COUNTRIES THAT HAVE TRIED THEM WITHOUT THE NEEDED SUPPORTING POLICIES SHOW THAT THEY ARE NOT A UNIVERSAL PANACEA THE CASE OF RUSSIA MONTHLY INFLATION AVERAGING MORE THAN 20 DURING THE PAST TWO YEARS AND STILL AT THAT LEVEL AMPLY DEMONSTRATES THAT PEGGING THE RUBLE EXCHANGE RATE WOULD HAVE BEEN AN IRRESPONSIBLE POLICY LEADING TO A QUICK DEPLETION OF ANY STABILIZATION FUND WITH NO IMPROVEMENT IN ECONOMIC PERFORMANCE MR SACHS COMPLAINS THAT DEBT RELIEF IS TOO SLOW IN COMING HOWEVER HE IGNORES THE FACT THAT UPON THE OUTSET OF RUSSIA'S DEBT CRISIS AN EFFECTIVE FREEZING OF DEBT PAYMENTS JUST AS IN THE MACY BANKRUPTCY HE MENTIONS OCCURRED AS HE WELL KNOWS A FORMAL RESTRUCTURING OF DEBT AS WITH ANY BANKRUPT COMPANY TAKES MUCH LONGER TO ARRANGE HE ALSO COMPLAINS THAT THE IMF DOES NOT PROVIDE SHORTTERM LIQUIDITY YET THIS IS PRECISELY WHAT THE IMF HAS DONE IN THE FORM OF A LARGE LOAN TO RUSSIA IN MID1993 UNFORTUNATELY THE RESULTS IN TERMS OF ACHIEVING FINANCIAL STABILIZATION HAVE BEEN MEAGER CAN IT BE SERIOUSLY SUGGESTED THAT THE LESSON IS THAT THE IMF SHOULD HAVE PROVIDED EVEN MORE MONEY IN SUPPORT OF A FAILED EFFORT I DOUBT THAT MOST PROVIDERS OF IMF FUNDS INCLUDING CENTRAL BANKS FROM ITS 178 MEMBERS WOULD ENDORSE SUCH A POSITION THE ONLY RESPONSIBLE POLICY IS FOR THE FRIENDS OF RUSSIA INCLUDING THE IMF TO CONTINUE TO LINK MAJOR FINANCIAL ASSISTANCE TO ACTUAL PERFORMANCE IN OVERCOMING RUSSIA'S ENORMOUS ECONOMIC PROBLEMS 9312090061 931209 GATT TEAMS PUSH FINAL EFFORTS TO SET GLOBAL TRADE PACT AS DEADLINE LOOMS BY ASRA Q NOMANI AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA TRADE NEGOTIATORS INCHED TOWARD COMPLETION OF A WORLD TRADE AGREEMENT WHILE CONTINUING LASTMINUTE BICKERING OVER SUCH ISSUES AS MOVIES FINANCIAL SERVICES AND RELIEF AGAINST THE DUMPING OF GOODS A BAZAARLIKE ATMOSPHERE PREVAILED AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHERE OFFICIALS WERE BATTLING NEXT WEDNESDAY'S DEADLINE TO COMPLETE AN ACCORD A DIZZYING NUMBER OF DEMANDS AND GRIPES AROSE YESTERDAY INCLUDING NEGOTIATIONS OVER THE SEASONALITY OF CUSTOMS DUTIES ON APPLES AND GRAPES MARKET ACCESS FOR TROPICAL WOOD AND TARIFFS ON CONSUMER ELECTRONICS BUT US AND OTHER NEGOTIATORS BELIEVED THAT OTHER THAN MOVIES MOST OF THE SQUABBLING WAS LITTLE MORE THAN AN 11THHOUR FLURRY OF DEALMAKING AS THE PACT IS WRAPPED UP ONE OF THE BIGGEST ISSUES THAT EMERGED WAS RICE TRADE NEGOTIATORS PRESENTED SOUTH KOREA AND JAPAN WITH A PLAN IN WHICH THEY WOULD HAVE TO OPEN THEIR RICE MARKETS AN IMPORTANT DEMAND FOR THE US RICE INDUSTRY AND ITS SUPPORTERS ON CAPITOL HILL SOUTH KOREA'S AGRICULTURE MINISTER HUH SHIN HAENG RESPONDED THAT AT THIS TIME WE CANNOT DO IT EVEN IF IT CAUSES A CRISIS IN THE TRADE TALKS BUT THE STATEMENTS WERE CONSIDERED MAINLY POLITICAL POSTURING DIRECTED AT THE AUDIENCE BACK HOME WHERE PROTESTERS HAVE TAKEN TO THE STREETS TO OPPOSE AN OPENING OF THE RICE MARKET INDEED HOURS LATER SOUTH KOREAN PRESIDENT KIM YOUNG SAM ANNOUNCED THAT HIS NATION WILL ALLOW RICE IMPORTS IN ORDER TO HELP CONCLUDE THE GATT TALKS WE ARE ON THE VERGE OF BEING ISOLATED FROM THE WORLD ACCORDINGLY WE HAVE NO CHOICE BUT TO ADOPT THIS CRITICAL POSITION PRESIDENT KIM SAID IN A TELEVISED ADDRESS THURSDAY MORNING KOREAN TIME A FIGHT BETWEEN THE US AND EUROPEAN COMMUNITY ON AUDIOVISUAL ISSUES HOWEVER REMAINS A MAJOR OBSTACLE TO CONCLUDING THE DEAL THE US WANTS THE EC TO LIMIT ITS BROADCAST QUOTAS ON US PROGRAMMING AND TO RESHAPE ITS FINANCIAL SUBSIDIES TO THE EUROPEAN MOVIE INDUSTRY WHICH NOW ARE FINANCED LARGELY BY LEVIES ON US MOVIES US TRADE REPRESENTATIVE MICKEY KANTOR SAID HE HAD BEEN TALKING WITH BRUSSELS AND GENEVA BY TELEPHONE ALL DAY AND HAD MADE PROGRESS IN RESOLVING THE DISPUTE BUT JACK VALENTI PRESIDENT OF THE MOTION PICTURE ASSOCIATION OF AMERICA SAID THE EUROPEANS WEREN'T WILLING TO COMPROMISE AT ALL THEY DON'T WANT TO MAKE A DEAL HE SAID THEY WANT TO EXCLUDE AUDIOVISUAL ISSUES BY REFUSING TO DO ANY NEGOTIATING THE US HAS SAID THAT UNLESS HOLLYWOOD'S COMPLAINTS ARE RESOLVED IT WOULD WALK AWAY FROM A TRADE PACT PRESIDENT CLINTON WEIGHED IN ON THE ISSUES BY SAYING THAT HOLLYWOOD'S COMPLAINTS ARE A VERY BIG ISSUE FOR THE US BECAUSE THE INDUSTRY IS A BIG EXPORTER AND A LARGE EMPLOYER IN CALIFORNIA AND NEW YORK ADDRESSING FRENCH ASSERTIONS THAT US MOVIES REPRESENTED A KIND OF CULTURAL IMPERIALISM MR CLINTON SAID THAT THE EMERGENCE OF NEW TECHNOLOGIES IN THE SATELLITE AND CABLE FIELD SHOULD ALLOW EUROPEAN COUNTRIES TO RUN LOCAL PROGRAMMING AS WELL AS HOLLYWOOD FARE IF THIS IS A CULTURAL CLAIM RATHER THAN A PROTECTIONIST CLAIM WE SHOULD BE ABLE TO WORK THROUGH THIS HE SAID DESPITE THE REMAINING DISPUTES JOHN SCHMIDT THE US'S TOP GATT NEGOTIATOR SAID WE'RE IN A CLOSEOUT PHASE BARGAINERS SHUFFLED IN AND OUT OF THE GATT HEADQUARTERS ALL DAY HERE SOMETIMES RACING UP THE STAIRS FROM THE MAIN LOBBY TO FLEE THE HORDE OF REPORTERS CORDONED OFF BEHIND VELVET ROPES AT A MEETING OF HEADS OF TRADE DELEGATIONS GATT DIRECTOR GENERAL PETER SUTHERLAND SAID BARGAINING ON MARKET ACCESS AND TARIFF CUTS WILL END MONDAY THE TEXTS RELATING TO THIS AND ALL OTHER PARTS OF THE TALKS ARE SUPPOSED TO BE COMPLETED THE DAY BEFORE IT IS A RACE AGAINST TIME SAID MR SUTHERLAND MARVELING AT THE SUDDEN CLAMOR FOR BETTER DEALS THE 116 COUNTRIES IN GATT ARE PRESSING TO MEET WEDNESDAY'S DEADLINE FOR ENDING THE NEGOTIATIONS WHICH HAVE DRAGGED ON FOR SEVEN YEARS IF THE TALKS ARE COMPLETED BY THEN PRESIDENT CLINTON WILL HAVE SOCALLED FASTTRACK AUTHORITY FOR THE TRADE LEGISLATION IN THE US CONGRESS A PROCESS BY WHICH LAWMAKERS WOULDN'T BE ABLE TO AMEND THE LEGISLATION AGRICULTURE REMAINED AN OUTSTANDING ISSUE ARCHIBALD LANUS ARGENTINA'S TOP GATT NEGOTIATOR SAID SEVERAL COUNTRIES WERE EXAMINING AGRICULTURAL TERMS LINE BY LINE INCLUDING PROPOSALS THE US AND EC SETTLED ON TO CHANGE THE BLAIR HOUSE ARRANGEMENT REACHED LAST YEAR IN WASHINGTON IN BRUSSELS EC COMMISSION PRESIDENT JACQUES DELORS SAID HE WAS NOW OPTIMISTIC ABOUT A GATT DEAL BEING CONCLUDING BY NEXT WEEK THOUGH HE STILL FRETTED ABOUT THE USEC AUDIOVISUAL DISPUTE GATT OFFICIALS IN GENEVA SAID FINANCIAL SERVICES AND TAXES ARE TWO OTHER ISSUES STUMPING THE NEGOTIATORS US FINANCIALSERVICE COMPANIES SUCH AS NEW YORKBASED CITICORP ARE LOBBYING FOR A TWOTIERED PROPOSAL IN WHICH THE US WOULD START LIMITING FOREIGN FINANCIAL SERVICES FROM BUSINESS IN THE US IN RETALIATION AGAINST COUNTRIES THAT IT CLAIMS CURB ACCESS TO THEIR FINANCIAL MARKETS THE PROPOSAL WOULDN'T RESTRICT THE ENTRY OF COUNTRIES WITH FAVORABLE CONDITIONS US COMPANIES SAY THEY ARE PUSHING THE POSITION BECAUSE THEY WEREN'T ABLE TO WIN MARKETOPENING CONCESSIONS DURING THE TALKS BUT NEGOTIATORS FROM SOME COUNTRIES WERE WINCING AT THE PLAN A GATT OFFICIAL SAID THAT SOME HAVE INDICATED THEY WOULD WITHDRAW FINANCIALSERVICE CONCESSIONS ON THE TABLE IF THE US INSISTS ON ITS POSITION JAPAN IS CONSIDERED PARTICULARLY RESISTANT MEANWHILE THERE WAS GRUMBLING OVER TERMS THE US PRESENTED TO BOLSTER GATT PROVISIONS OVER WHAT NATIONS CAN DO IF IT FINDS IMPORTERS DUMPING GOODS IN THEIR MARKETS AT PRICES DEEMED TO BE UNFAIR WHILE LEAVING A MEETING JEANMARIE METZGER FRANCE'S CHIEF GATT NEGOTIATOR GRIPED THE AMERICANS HAVE MADE ENORMOUS DEMANDS THE US ALSO HAS COME UNDER FIRE FOR PUSHING A PLAN THAT WOULD ALLOW NATIONS TO TAX THE CORPORATE INCOME OF FOREIGN FIRMS DIFFERENTLY THAN IT DOES US COMPANIES THE US INSISTS THE PROPOSAL WOULDN'T BE USED AS A TRADE BARRIER BUT IT HASN'T YET CONVINCED KEY NEGOTIATORS PARTICULARLY FROM EUROPEAN COUNTRIES NEGOTIATORS FROM MANY DEVELOPING COUNTRIES EXPRESSED SOME OF THE MOST FRUSTRATION YESTERDAY SAYING THE US AND EC HAVE GAINED THE MOST FROM THEIR AGREEMENT THIS WEEK OVER AGRICULTURE AND MANUFACTURED GOODS THE TALKS CALLED THE URUGUAY ROUND FOR ITS STARTING PLACE IN PUNTA DEL ESTE URUGUAY ARE SUPPOSED TO BOOST THE ECONOMIES OF MANY OF THOSE DEVELOPING COUNTRIES IT'S FOR THE NORTHERN HEMISPHERE SAID ERNESTO TIRONI CHIEF GATT NEGOTIATOR FOR CHILE WHICH IS SEEKING EQUAL DUTIES FOR ITS APPLE AND GRAPE EXPORTS TO THE EC UNDER THE CURRENT OFFER THE DUTIES WOULD RISE SHARPLY DURING THE SEASON THAT CHILE EXPORTS ONE UNUSUAL BENEFICIARY FROM THE GATT TALKS IS THE WORLD TRADE ORGANIZATION'S BOOKSTORE IT'S HAWKING URUGUAY ROUND SWEATSHIRTS JULIE WOLF IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9312090060 931209 BUSINESS BRIEF PEPSICO INC PEPSICOLA CREATES VENTURE TO MAKE JUICEBASED DRINKS PEPSICOLA INTERNATIONAL A UNIT OF PEPSICO INC OF PURCHASE NY SAID IT CREATED A GLOBAL JOINT VENTURE TO PRODUCE AND MARKET TROPICAL FRUIT DRINKS THE JUICEBASED DRINKS WILL BE MARKETED UNDER THE SEASON'S HARVEST BRAND NAME BY A PARTNERSHIP INCLUDING PEPSICO WORLD TRADING CO A UNIT OF SOMERS NYBASED PEPSICOLA INTERNATIONAL AND ARCTIC BEVERAGES PEPSI'S LARGEST INDIAN FRANCHISED BOTTLER THE NAME OF THE PARTNERSHIP IS PURE & NATURAL INC INITIAL DISTRIBUTION IS PLANNED FOR THE UNITED KINGDOM CANADA AND THE CARIBBEAN WITH OTHER MARKETS TO FOLLOW IN THE US THE DRINKS WILL BE SOLD THROUGH INDEPENDENT DISTRIBUTORS TO ETHNIC AND SPECIALTY STORES IN MAJOR METROPOLITAN AREAS ON THE EAST AND WEST COASTS THE VENTURE HARKS BACK TO A 1990 AGREEMENT BETWEEN PEPSI AND INDIA FOR THE BEVERAGE COMPANY TO AID INDIAN EXPORTS A PEPSI SPOKESMAN SAID THE COMPANY DECLINED TO ESTIMATE SALES OR MARKETING EXPENSES 9312090059 931209 WHAT'S NEWS WORLDWIDE ISRAEL HAS UNDERTAKEN A MASSIVE TROOP BUILDUP IN THE OCCUPIED LANDS PLEDGING TO FIGHT TERROR WITH ALL OUR STRENGTH PRIME MINISTER RABIN TOOK THE UNUSUAL STEP OF ANNOUNCING THAT ISRAEL HAS DEPLOYED OVER 14000 SOLDIERS TO CURB ATTACKS IN THE WEST BANK AND GAZA STRIP HE DESCRIBED THE DEPLOYMENT FIVE DAYS BEFORE PALESTINIAN SELFRULE IS TO BEGIN IN GAZA AND JERICHO AS TREMENDOUS MEANWHILE A JEWISH SETTLER WAS SHOT IN BETHLEHEM AND SEVERAL DEMONSTRATIONS IN JERUSALEM TURNED VIOLENT AMID INCREASING SIGNS ISRAEL MAY POSTPONE THE TROOP WITHDRAWAL SCHEDULED TO BEGIN MONDAY UNDER AN ISRAELPLO PACT SECRETARY OF STATE CHRISTOPHER NOTING THAT THE DEADLINE FOR BEGINNING THE PULLOUT IS IN JEOPARDY SAID THE US WOULDN'T OBJECT TO A SHORT DELAY CLINTON EXPRESSED CONCERN ABOUT A FULLBLOWN CRISIS WITH NORTH KOREA OVER NUCLEAR INSPECTIONS BUT HE ADDED THAT IF THERE IS A CONFLICT HE IS SURE THE US CAN DO WHAT WE NEED TO DO SEPARATELY NORTH KOREA ADMITTED IN AN OFFICIAL COMMUNIQUE THAT ITS ECONOMY HAD SUFFERED GRIM TRIALS AND WAS IN A GRAVE SITUATION A HEALTHRESEARCH FIRM SAID THE CLINTON HEALTHCARE PLAN WILL COST EMPLOYERS AND INDIVIDUALS MORE THAN THE WHITE HOUSE ANTICIPATES BUT IT SAID THE ADMINISTRATION'S OVERALL FINANCING PROPOSALS ARE SOUND THE COMPANY LEWINVHI RELEASED A 186PAGE ANALYSIS OF THE PRESIDENT'S PLAN FOR UNIVERSAL HEALTH COVERAGE FORMER PRIME MINISTER THATCHER TOOK THE WITNESS STAND BEFORE AN ARMSTOIRAQ INQUIRY IN LONDON OFFERING NO APOLOGIES FOR THE UK GOVERNMENT'S 1988 APPROVAL TO SELL SOPHISTICATED GEAR TO BAGHDAD THAT WAS USED TO MAKE WEAPONS WHILE ADMITTING HER GOVERNMENT MADE ERRORS SHE TREATED THE ISSUE AS UNIMPORTANT NATO INTENDS TO CONDUCT JOINT MILITARY EXERCISES WITH FORMER SOVIET BLOC STATES NEXT YEAR UNDER A PLAN SET FOR APPROVAL AT AN ALLIANCE MEETING NEXT MONTH ASPIN SAID SPEAKING IN BRUSSELS THE DEFENSE SECRETARY ALSO REASSERTED THE US POSITION THAT NATO MUST EXPAND ITS MEMBERSHIP TO INCLUDE EASTERN EUROPEAN NATIONS SEN KAY BAILEY HUTCHISON WAS INDICTED FOR A SECOND TIME ON ETHICS CHARGES STEMMING FROM HER TENURE AS TEXAS STATE TREASURER IN SEPTEMBER THE GOP LAWMAKER WAS INDICTED ON CHARGES SHE USED EMPLOYEES TO PERFORM PERSONAL AND POLITICAL CHORES CHARGES WERE DROPPED AFTER A GRAND JUROR WAS FOUND TO HAVE A PENDING THEFT CHARGE ASTRONAUTS COMPLETED THE MOST CRITICAL REPAIRS TO THE HUBBLE SPACE TELESCOPE AS THE CREW OF SPACE SHUTTLE ENDEAVOUR NEARED THE END OF ITS MISSION SCIENTISTS WON'T KNOW FOR SEVEN TO 13 WEEKS WHETHER THE TELESCOPE'S NEWLY INSTALLED CORRECTIVE LENSES ARE A SUCCESS WINNIE MANDELA WAS REELECTED HEAD OF THE WOMEN'S WING OF THE AFRICAN NATIONAL CONGRESS IN SOUTH AFRICA ACHIEVING A REMARKABLE COMEBACK AFTER A KIDNAPPING CONVICTION AND ALLEGATIONS OF INFIDELITY THE ESTRANGED WIFE OF ANC LEADER NELSON MANDELA REMAINS POPULAR AMONG YOUNG BLACKS BECAUSE OF HER CONFRONTATIONAL STYLE A GERMAN COURT SENTENCED TWO NEONAZIS TO MAXIMUM PRISON TERMS IN A 1992 FIREBOMBING THAT KILLED THREE TURKS THE SENTENCES LIFE IMPRISONMENT FOR ONE DEFENDANT AND 10 YEARS IN JAIL FOR A SECOND MAN TREATED AS A JUVENILE UNDER GERMAN LAW WERE HAILED BY HUMANRIGHTS ACTIVISTS WHO ARE SEEKING TO STEM ANTIFOREIGNER VIOLENCE RUSSIAN PARTIES MADE THEIR FINAL FREE CAMPAIGN BROADCASTS BEFORE SUNDAY'S PARLIAMENTARY ELECTIONS AND REFERENDUM ON A NEW CONSTITUTION YELTSIN MEANWHILE WAS IN BRUSSELS TO SIGN A TRADE ACCORD WITH EUROPEAN COMMUNITY LEADERS WHO ARE HOPING THE PACT WILL HELP THE PRESIDENT POLITICALLY THOUSANDS OF ROMANIANS MARCHED IN BUCHAREST PARODYING A BOLSHEVIK PARADE AND SHOUTING FOR THE RESIGNATION OF PRESIDENT ILIESCU IN THE CAPITAL'S BIGGEST LABOR PROTEST SINCE THE FALL OF THE COMMUNIST GOVERNMENT FOUR YEARS AGO TWO MILLION WORKERS STAGED TWOHOUR WARNING STRIKES ACROSS THE COUNTRY TO VENT THEIR ANGER AT LOW WAGES A SPECIAL PANEL WAS SET UP IN EL SALVADOR TO INVESTIGATE ARMED GROUPS BUT PRESIDENT CRISTIANI SAID THERE WASN'T ANY EVIDENCE OF A RESURGENCE IN DEATHSQUAD ACTIVITY THE NEW PANEL PLANS TO USE FOREIGN CONSULTANTS IN ITS EFFORT TO PROBE A WAVE OF RECENT KILLINGS 9312090055 931209 BUSINESS BRIEF POCO PETROLEUMS LTD CONCERN PLANS MORE DRILLING NEAR ALBERTA DISCOVERY WELL POCO PETROLEUMS LTD SAID IT PLANS TO DRILL SEVERAL MORE WELLS NEAR AN ALBERTA DISCOVERY WELL THAT HAS STRUCK GAS THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID FLOWTEST RESULTS FROM THE HAMBURGAREA WELL WHICH IS JOINTLY OWNED BY POCO AND NORTHSTAR ENERGY CORP CALGARY SUGGEST THE WELL COULD PRODUCE 20 MILLION CUBIC FEET A DAY OF NATURAL GAS AND 800 BARRELS A DAY OF ASSOCIATED LIQUIDS POCO SAID IT EXPECTS PRODUCTION FROM THE WELL TO START EARLY IN 1995 POCO'S CHIEF FINANCIAL OFFICER JOHN FERGUSON ESTIMATED THAT POCO'S SHARE OF THE NEW WELL'S OUTPUT COULD AMOUNT TO 5 OF ITS CURRENT GAS PRODUCTION CURRENTLY BETWEEN 180 MILLION AND 190 MILLION CUBIC FEET OF GAS DAILY HE SAID THE HAMBURG DISCOVERY IS SO SIGNIFICANT TO POCO THAT THE COMPANY PLANS TO DRILL SEVEN OR EIGHT MORE WELLS IN THE REGION DURING 1994 9312090054 931209 CORRECTIONS & AMPLIFICATIONS THE COUPONEQUIVALENT YIELD OF 13WEEK BILLS SOLD BY THE TREASURY MONDAY WAS 318 NOT 316 AS REPORTED IN TUESDAY'S CREDIT MARKETS COLUMN 9312090053 931209 TECHNOLOGY BRIEF SMITHKLINE BEECHAM PLC NORTH AMERICAN OFFICIAL SAYS PRICE OF TAGAMET WILL DROP JEAN PIERRE GARNIER VICE PRESIDENT OF SMITHKLINE BEECHAM PLC'S NORTH AMERICAN PHARMACEUTICALS OPERATIONS SAID THE COMPANY PLANS TO SLASH THE PRICE OF ITS TOPSELLING ULCER DRUG TAGAMET WHEN ITS PATENT EXPIRES NEXT APRIL MR GARNIER'S STATEMENT MADE AT A MEDIA DINNER IN LONDON WASN'T A SURPRISE AS MOST ANALYSTS EXPECT THAT SEVERE PRICE CUTS WILL BE NEEDED IF TAGAMET IS TO KEEP ITS MARKET SHARE IN THE FACE OF A GENERICDRUG ONSLAUGHT MR GARNIER DECLINED TO SPECIFY THE EXTENT OF THE PRICE CUT BUT INDUSTRY ANALYSTS SAY IT'S PROBABLE THE PRICE WOULD DROP TO A THIRD OF ITS CURRENT LEVELS SMITHKLINE RECENTLY BEGAN OFFERING 10 REBATES ON TAGAMET THE MOVE WAS AIMED DIRECTLY AT GRABBING MARKET SHARE AWAY FROM THE MORE EXPENSIVE ZANTAC MEDICATION MADE BY ARCHRIVAL GLAXO HOLDINGS PLC 9312090052 931209 BUSINESS BRIEF POLICY MANAGEMENT SYSTEMS CORP RELEASE OF AUDIT IS DELAYED BY ACCOUNTANTS' DIFFICULTIES POLICY MANAGEMENT SYSTEMS CORP SAID AN INTERNAL AUDIT BY COOPERS & LYBRAND WON'T BE RELEASED UNTIL EARLY 1994 THE ACCOUNTING FIRM'S AUDIT OF THE COLUMBIA SC SOFTWARE COMPANY HAS BEEN SLOWED BY UNFORESEEN DIFFICULTY IN ACCUMULATING AND VERIFYING CERTAIN HISTORICAL DATA SAID G LARRY WILSON CHAIRMAN AND PRESIDENT IN A LETTER TO STOCKHOLDERS THE COMPANY'S FINANCIAL REPORTING IS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION IN APRIL THE COMPANY SAID ITS FIRSTQUARTER RESULTS WOULD BE WELL BELOW EXPECTATIONS AND ITS SHARE PRICE FELL 43 IN RESPONSE SINCE THEN THE FIRM'S FINANCIAL REPORTING HAS BECOME THE SUBJECT OF FEDERAL AND INTERNAL INVESTIGATIONS SEVERAL SHAREHOLDERS HAVE SUED ALLEGING THAT MANAGEMENT MISREPRESENTED THE COMPANY'S FINANCIAL HEALTH THE COMPANY ALSO SAID YESTERDAY THAT IT SIGNED AN AGREEMENT WITH VITAL FORSIKRING OF NORWAY THAT WILL GENERATE MORE THAN 150 MILLION IN REVENUE OVER SEVEN YEARS 9312090051 931209 BUSINESS BRIEF VIDEOCART INC COMPANY FILES TO OBTAIN PROTECTION FROM CREDITORS VIDEOCART INC WHICH HAD BEEN STRUGGLING TO CONVINCE SUPERMARKETS TO ACCEPT ITS SHOPPINGCART VIDEO SCREEN TECHNOLOGY FILED FOR PROTECTION FROM CREDITORS IN FEDERAL BANKRUPTCY COURT IN CHICAGO THE CHAPTER 11 FILING CAME LESS THAN A MONTH AFTER THE COMPANY'S OUTSIDE AUDITORS ARTHUR ANDERSEN & CO RESIGNED AND AFTER TWO SUPERMARKET CHAINS ABANDONED TESTS OF VIDEOCART'S TECHNOLOGY THOSE TESTS INVOLVED VIDEO SCREENS WHICH ARE BOLTED ONTO SHOPPINGCART HANDLES THAT PICK UP SIGNALS GUIDING CONSUMERS TO SPECIALS THROUGHOUT THE STORE SCREENS ALSO COULD DISPLAY NEWS SUPPLIED BY GANNETT CO'S USA TODAY NEWSPAPER IN A BRIEF NEWS RELEASE CHAIRMAN AND CHIEF EXECUTIVE OFFICER RONALD E SPEARS WAS QUOTED AS SAYING HE HOPES TO REORGANIZE THE COMPANY AROUND VIDEOCART'S INTELLECTUAL PROPERTY ASSETS COMPANY OFFICIALS COULDN'T BE REACHED TO ELABORATE 9312090050 931209 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRAZIL'S AMBITIOUS PLAN TO DEFEAT UNRELENTING HIGH INFLATION WAS SET BACK WHEN A CABINET MEMBER RESIGNED BECAUSE HE OPPOSES THE ECONOMIC STABILIZATION PROPOSALS THAT ALSO WOULD PHASE IN A NEW CURRENCY JERONIMO MOSCARDO A CAREER DIPLOMAT WHO WAS CULTURE MINISTER FOR JUST THREE MONTHS LAMBASTED ECONOMY MINISTER FERNANDO HENRIQUE CARDOSO'S PROGRAM TO STANCH INFLATION WHICH COULD HIT A 2600 RATE THIS YEAR PRESIDENT ITAMAR FRANCO'S GOVERNMENT ALREADY FACED HIGH POLITICAL ODDS AGAINST THE PLAN IN THE LEGISLATURE WHICH IS REELING FROM A CORRUPTION SCANDAL THE PLAN UNVEILED TUESDAY REQUIRES HUGE SPENDING CUTS AND A 5 ACROSSTHEBOARD TAX INCREASE FOR NEXT YEAR UNPALATABLE AHEAD OF ELECTIONS SCHEDULED FOR OCTOBER THE PLAN WOULD CREATE A PRICE REFERENCE INDEX INTENDED TO LEAD TO A STABLE NEW CURRENCY THE FIFTH SINCE 1986 MR MOSCARDO OPPOSES CUTS IN CULTURE AND MILITARY SPENDING AND ANY STRATEGY THAT DIRECTLY OR INDIRECTLY PEGS BRAZIL'S CURRENCY TO THE US DOLLAR CHINA WILL ISSUE COINS COMMEMORATING THE DEC 26 CENTENARY OF THE REVOLUTIONARY LEADER MAO TSETUNG'S BIRTH ONE BATCH FOR DOMESTIC BUYERS WILL BE MINTED IN GOLD AND SILVER VERSIONS AND ANOTHER FOR OVERSEAS COLLECTORS WILL CONSIST OF TWO GOLD AND TWO SILVER COINS WITH FOUR DIFFERENT PORTRAITS OF THE COMMUNIST PARTY CHAIRMAN AT DIFFERENT STAGES OF HIS LIFE CHINA ALSO MIGHT ISSUE A GOLD COIN HONORING DENG XIAOPING THE 89YEAROLD PARAMOUNT LEADER WHO HAS SAID THAT TO GET RICH IS GLORIOUS SIX GERMAN GOVERNMENT MINISTRIES WILL MOVE THEIR MAIN OFFICES TO BERLIN BY 1999 WHEN EIGHT MORE AGENCIES WILL HAVE OUTLETS THERE UNDER A PLAN ADOPTED BY THE CABINET PARLIAMENT VOTED IN 1991 TO MAKE BERLIN THE CAPITAL BUT THE GOVERNMENT HAS BEEN SLOW TO SCHEDULE THE SWITCH FROM BONN EVEN NOW OFFICIALS SAID UNFORESEEN PROBLEMS COULD SKEW THE TIMETABLE TO ACCOMMODATE EMPLOYEES FROM THE 14 MINISTRIES AN ESTIMATED 12000 NEW APARTMENTS WILL BE NEEDED IN BERLIN IN OCTOBER PRODDED BY BIG CORPORATE INVESTORS IN EASTERN GERMANY TO HELP THEIR PLANNING THE GOVERNMENT SET THE YEAR 2000 AS THE INTENDED TARGET DATE FOR THE CAPITAL'S MOVE RUSSIA IS AUCTIONING 18 OF THE COUNTRY'S LARGEST OIL REFINERY OMSKNEFTORGSINTEZ FOR PRIVATIZATION VOUCHERS THE SIBERIAN ENTERPRISE HAS A RATED CAPACITY OF 560000 BARRELS OF OIL A DAY BUT IN THIS YEAR'S FIRST 10 MONTHS IT REFINED 400000 BARRELS DAILY THE AUCTION TO RUN THROUGH JAN 10 WILL TRANSFER OWNERSHIP BUT WON'T RAISE ANY CAPITAL ROSNEFT THE STATE OIL HOLDING COMPANY WILL RETAIN A CONTROLLING 38 OF THE REFINER'S SHARES AND 51 OF THE VOTING STOCK MANAGERS AND WORKERS AT THE REFINERY OWN 30 AND 14 IS RESERVED FOR AUCTIONS TO ETHNIC MINORITIES OF RUSSIA'S FAR NORTH AND PIPELINE WORKERS CHINA'S FIVE SPECIAL ECONOMIC ZONES HAD A COMBINED TRADE DEFICIT OF 132 BILLION IN THIS YEAR'S FIRST 10 MONTHS THE CHINA DAILY SAID IN THE SOUTHERN COASTAL CITIES OF SHENZHEN SHANTOU XIAMEN AND ZHUHAI AND THE ISLAND PROVINCE OF HAINAN IMPORTS TOTALED 1149 BILLION AND EXPORTS 1017 BILLION HAINAN'S IMPORTS MORE THAN DOUBLED TO 13 BILLION FROM A YEAR EARLIER THE ZONES SET UP IN THE 1980S TO ATTRACT FOREIGN INVESTMENT OFFER PREFERENTIAL TAX RATES THEIR IMPORTS INCLUDED ELECTRICAL AND TEXTILE MACHINERY AUTOS SHIPS AND STEEL VIETNAM REPORTED STELLAR INDUSTRIAL GROWTH IN HANOI THAT LED TO AN AVERAGE 105 EXPANSION IN THE CAPITAL'S ECONOMIC OUTPUT IN THE PAST TWO YEARS GROWTH IN PRODUCTION OF ELECTRIC AND ELECTRONIC GOODS SOARED 88 LAST YEAR COMPARED WITH 13 IN 1991 AND COULD JUMP 131 THIS YEAR THE VIETNAM NEWS AGENCY SAID THE HEALTHY EXPANSION WAS ATTRIBUTED TO COMPANY RESTRUCTURINGS BETTER PRODUCTION TECHNIQUES AND IMPROVEMENTS IN PLANTS AND INFRASTRUCTURE FOREIGN INVESTMENT PROJECTS IN HANOI SO FAR THIS YEAR TOTAL 112 WITH OVERALL CAPITALIZATION OF 114 BILLION MEANWHILE VIETNAM SAID IT WAS LOSING ITS FIGHT AGAINST CORRUPTION AND SMUGGLING IN THE FIRST 10 MONTHS CORRUPTION CASES ALMOST DOUBLED FROM A YEAR EARLIER TO 918 WITH EMBEZZLEMENT MOST COMMON GRAFT IS PERVASIVE FROM STATE MINISTRIES TO CUSTOMS AND TAX OFFICES POLICE AND COURTS STATE NEWSPAPERS SAID ABOUT 2600 OFFICIALS HAVE BEEN DISCIPLINED FOR BRIBERY ABOUT 17000 CASES INVOLVED SMUGGLING TRADING IN ARMS EXPLOSIVES AND DRUGS DEALING IN FAKE GOODS AND EVADING TAXES NORTH KOREA OUSTED KIM TAL HYON AS PLANNING CHIEF AND DEPUTY PRIME MINISTER IN WHAT ANALYSTS TERMED A MOVE TO REVIVE THE FLOUNDERING ECONOMY MR KIM A NEPHEW OF THE AUTOCRATIC LEADER KIM IL SUNG WAS SUCCEEDED IN THE PLANNING POST BY HONG SOK HYONG ALSO A RELATIVE OF THE PRESIDENT SRI LANKA'S LARGE ELEPHANT POPULATION HAS DWINDLED TO ABOUT 3000 AND DESPITE PROTECTIVE MEASURES THE ANIMALS COULD VANISH AS JUNGLES ARE LOST TO A GROWING HUMAN POPULATION AND ELEPHANTS ARE KILLED BY FARMERS FOR DAMAGING CROPS OR BY POACHERS IN THE TUSK TRADE 9312090049 931209 SMALL STOCK FOCUS GATEWAY 2000'S NEW SHARES JUMP 28 AMID KEEN INTEREST IN COMPUTER ISSUES BY KYLE POPE AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL SHARES OF GATEWAY 2000 JUMPED MORE THAN 28 ON THEIR FIRST DAY OF TRADING REFLECTING A MARKET FOR PERSONALCOMPUTER STOCKS THAT CONTINUES TO SIZZLE THE NORTH SIOUX CITY SD MAILORDER COMPUTER MARKETER CLOSED AT 19 1/4 IN THE DAY'S MOST ACTIVE NASDAQ TRADING AFTER OPENING AT 20 3/4 PER SHARE AND TRADING AS HIGH AS 21 1/2 THE OFFERING OF 109 MILLION SHARES AT 15 EACH RAISED 1635 MILLION THE BIGGEST NEW PERSONALCOMPUTER ISSUE THIS YEAR THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES GAINED 034 POINT TO 25437 GATEWAY TOPPED THE RUSSELL 2000'S AND THE NASDAQ STOCK MARKET'S MOSTACTIVE LISTS WITH TURNOVER OF ABOUT 112 MILLION SHARES ANALYSTS CONDITIONED BY ONE OF THE HOTTEST NEWISSUE MARKETS IN YEARS SAID THEY WEREN'T SURPRISED BY GATEWAY'S JUMP PARTICULARLY IN LIGHT OF A SURGE OF INTEREST IN COMPUTERS AMONG FIRSTTIME BUYERS THE RETURNS IN THE IPO MARKET ARE SMALLER THAN WHAT THEY WERE A FEW MONTHS AGO I THINK INVESTORS WILL LOOK BACK ON THE GATEWAY ISSUE AS ONE OF THE BETTERPERFORMING IPOS A NEAR 30 JUMP ON THE FIRST DAY ISN'T BAD SAID KATHY SMITH AN ANALYST WITH RENAISSANCE CAPITAL CORP IN GREENWICH CONN TONY HITSCHLER PRESIDENT OF BRANDYWINE ASSET MANAGEMENT IN WILMINGTON DEL SAID HIS GROUP BOUGHT INTO THE GATEWAY IPO BUT IMMEDIATELY FLIPPED THE STOCK PROFITING ON THE SHORTTERM PRICE MOVE WE THINK THE STOCK ACHIEVED OUR TARGET HE SAID WHILE PROFIT MARGINS AT MANY PC COMPANIES HAVE BEEN STRAINED BY FALLING PRICES DEMAND FOR THE MACHINES IS SOARING MANY OF THE MOSTPOPULAR PRODUCTS ARE STILL ON BACKLOG AND ANALYSTS PREDICT A CHRISTMAS SELLING SEASON THAT COULD MATCH LAST YEAR'S THE HOTTEST ON RECORD AT GATEWAY SALES THROUGH THIS YEAR'S FIRST NINE MONTHS TOTALED 118 BILLION COMPARED WITH 11 BILLION FOR ALL OF 1992 ITS NET INCOME JUMPED 41 TO 686 MILLION FOR THE NINE MONTHS WHILE NET PROFIT MARGINS FOR THE MOST RECENT QUARTER CAME IN AT 59 MUCH WIDER THAN MOST OF GATEWAY'S COMPETITORS DESPITE ITS STRONG BALANCE SHEET THE COMPANY'S PROSPECTUS RAISED SOME EYEBROWS BECAUSE OF AN UNUSUALLY LARGE TAKE BY THE COMPANY'S FOUNDERS WHO GAVE UP ONLY 15 OF THE COMPANY WHILE GETTING MORE THAN HALF THE OFFERING PROCEEDS AND ANALYSTS NOTE THAT GATEWAY'S GOOD FORTUNES LIKE MOST OF ITS COMPETITORS' WILL HOLD ONLY AS LONG AS PC SALES CONTINUE TO BOOM ALREADY SOME INDUSTRY WATCHERS HAVE BEGUN TO WARN ABOUT A POSSIBLE INVENTORY GLUT EARLY NEXT YEAR AS THE CHRISTMAS RUSH FADES IN OTHER ACTION SHARES OF SMALLCAPITALIZATION GOLDMINING COMPANIES JUMPED AS GOLD FOR FEBRUARY DELIVERY SHOT UP 640 TO 38570 ON NEW YORK'S COMMODITY EXCHANGE ROYAL OAK MINES GAINED 5/16 TO 5 AMAX GOLD ROSE 3/4 TO 7 1/4 AND BATTLE MOUNTAIN GOLD ADDED 1/2 TO 9 7/8 ONE OF THE SESSION'S BIGGEST GAINERS WAS INGLES MARKETS UP 2 3/8 TO 11 3/8 THE ASHEVILLE NC OPERATOR OF A SUPERMARKET CHAIN BOOSTED ITS QUARTERLY DIVIDEND TO 165 CENTS FROM 825 CENTS PAYABLE DEC 27 TO SHAREHOLDERS OF RECORD AS OF DEC 17 AN INITIAL BUY RATING FROM HANCOCK INSTITUTIONAL EQUITY SERVICES DROVE DS BANCOR'S STOCK PRICE UP 3 TO 21 1/2 THE DERBY CONN COMPANY OWNS SAVINGS AND LOANS STARSIGHT TELECAST ROSE 3 1/2 TO 21 3/4 THE FREMONT CALIF CONCERN SAID IT SIGNED AN AGREEMENT WITH PHILIPS CONSUMER ELECTRONICS CO TO INCORPORATE STARSIGHT'S INTERACTIVE ONSCREEN TELEVISION PROGRAM GUIDE AND VIDEOCASSETTE RECORDER CONTROL SERVICE TECHNOLOGY INTO MAGNAVOX AND PHILIPS VCRS AND TVS TERMS WERE NOT DISCLOSED A STANDOUT LOSER WAS CONDOR SERVICES DOWN 1 1/4 TO 6 1/4 THE INSURER BASED IN EL SEGUNDO CALIF SAID ABOUT 17 MILLION OF PREMIUM FUNDS COLLECTED BY AN INDEPENDENT AGENCY UNDER CONTRACT WITH CONDOR ARE UNACCOUNTED FOR LOEWENSTEIN FURNITURE GROUP OF POMPANO BEACH FLA LOST 2 3/4 TO 11 AFTER THE CLOSE YESTERDAY THE COMPANY SAID IT EXPECTS FOURTHQUARTER NET INCOME OF 870000 OR 18 CENTS A SHARE NOT INCLUDING A CHARGE OF 348000 FROM A WRITEOFF OF DEFERRED LOAN COSTS AND ANOTHER CHARGE OF 501000 RELATED TO A MODIFICATION OF CERTAIN STOCKPURCHASE RIGHTS A YEAR EARLIER LOEWENSTEIN EARNED 21 CENTS A SHARE WEAKER THIRDQUARTER EARNINGS LOPPED 2 OFF HUFFMAN KOOS'S SHARE PRICE CAUSING THE RIVER EDGE NJ FURNITURE COMPANY TO FINISH AT 7 HUFFMAN KOOS SAID NET INCOME FOR THE PERIOD SLIPPED TO 11 CENTS A SHARE FROM 15 CENTS A YEAR EARLIER TRO LEARNING SCHAUMBURG ILL FELL 2 TO 8 1/2 FISCAL 1994 EARNINGS COULD BE NEGATIVELY AFFECTED TO THE TUNE OF 30 CENTS A SHARE THE COMPANY SAID DUE TO AN INVESTMENT OF MORE THAN 3 MILLION IT EXPECTS TO MAKE TO DEVELOP A COMPREHENSIVE BASIC SKILLS CURRICULUM FOR CORPORATIONS ADDITIONALLY TRO A DEVELOPER OF MICROCOMPUTERBASED INTERACTIVE INSTRUCTIONAL AND TESTING SYSTEMS REPORTED FISCAL FOURTHQUARTER NET INCOME FROM CONTINUING OPERATIONS OF 34 CENTS A SHARE DOWN SLIGHTLY FROM 36 CENTS A YEAR EARLIER NASDAQ NATIONAL MARKET STOCKS THAT HIT HIGHS FOR THE YEAR TO DATE TOTALED 36 WHILE 24 ISSUES HIT LOWS CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9312090048 931209 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/2 HIGH 2 1/2 LOW 2 3/4 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 330 30 TO 49 DAYS 325 50 TO 239 DAYS 338 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 341 30 DAYS 341 60 DAYS 340 90 DAYS CERTIFICATES OF DEPOSIT 265 ONE MONTH 271 TWO MONTHS 272 THREE MONTHS 278 SIX MONTHS 301 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 340 ONE MONTH 335 THREE MONTHS 342 SIX MONTHS BANKERS ACCEPTANCES 326 30 DAYS 321 60 DAYS 321 90 DAYS 323 120 DAYS 324 150 DAYS 325 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/8 3 1/4 ONE MONTH 3 3/8 3 1/4 TWO MONTHS 3 7/16 3 5/16 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 7/16 ONE MONTH 3 7/16 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 609 JAPAN 3 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY DECEMBER 6 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 327 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 698 60 DAYS 705 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 695 60 DAYS 705 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 9312090047 931209 ECONOMY HEALTHPLAN COST OUTLOOK IS TOO ROSY BUT BASIC FINANCING WORKS FIRM SAYS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A RESPECTED HEALTHRESEARCH FIRM SAID THE CLINTON HEALTHCARE PLAN WILL COST EMPLOYERS AND INDIVIDUALS MORE THAN THE WHITE HOUSE PROJECTS BUT IT SAID THE ADMINISTRATION'S OVERALL FINANCING PROPOSALS ARE SOUND THE COMPANY LEWINVHI A UNIT OF VALUE HEALTH INC RELEASED A 186PAGE ANALYSIS OF PRESIDENT CLINTON'S PROPOSAL TO GUARANTEE HEALTH COVERAGE TO ALL AMERICANS IT CONCLUDED THAT THE WHITE HOUSE CAN SUCCESSFULLY PAY FOR ITS PLAN THROUGH ITS STRATEGY OF WRINGING SAVINGS FROM CURRENT PUBLIC HEALTH PROGRAMS RAISING THE EXCISE TAX ON CIGARETTES AND OTHER TOBACCO PRODUCTS AND HOLDING DOWN MEDICAL COSTS THROUGH COMPETITION AND CONTROLS ON HEALTH INSURANCE PREMIUMS THE PLAN'S FINANCING STRUCTURE WORKS SAID LAWRENCE LEWIN CHAIRMAN AND CHIEF EXECUTIVE OF LEWINVHI IT MEETS THE PRESIDENT'S REQUIREMENT OF PROVIDING UNIVERSAL COVERAGE AND IT DOES SO WITHOUT RELYING ON AN INCREASE IN BROADBASED INCOME TAXES BUT LEWINVHI DISAGREED WITH THE WHITE HOUSE ON WHAT PREMIUMS WOULD BE REQUIRED TO PAY FOR THE HEALTH BENEFITS IT PROPOSES THE ADMINISTRATION PROJECTS THAT THE AVERAGE PREMIUM ONCE THE SYSTEM IS FULLY PHASED IN WOULD BE 2388 FOR AN INDIVIDUAL THE COMPANY'S ESTIMATE IS 2732 THE WHITE HOUSE PROJECTS THE PREMIUM FOR A TWOPARENT FAMILY WITH CHILDREN WOULD BE 5388 LEWINVHI PUTS IT AT 5975 AS A RESULT OF THE HIGHER PREMIUM PROJECTIONS LEWINVHI ESTIMATES THAT THE SUBSIDIES PROPOSED FOR BUSINESSES AND LOWINCOME INDIVIDUALS WOULD COST 37 BILLION MORE DURING THE FIRST FIVE YEARS OF THE PLAN THAN THE ADMINISTRATION SAYS 153 BILLION INSTEAD OF THE WHITE HOUSE ESTIMATE OF 116 BILLION HOWEVER THE LEGISLATION THAT THE PRESIDENT SUBMITTED TO CONGRESS ADDS A 45 BILLION CUSHION TO THE OVERALL SUBSIDY FIGURE COUNTING THAT THE LEWINVHI SUBSIDY ESTIMATES COME IN 8 BILLION LOWER THAN THE WHITE HOUSE PROJECTIONS LEWINVHI BASED IN FAIRFAX VA IS ONE OF THE FEW ORGANIZATIONS OUTSIDE THE GOVERNMENT WITH THE COMPUTER MODELS NEEDED TO ANALYZE COMPLEX HEALTHCARE LEGISLATION ADMINISTRATION OFFICIALS MEMBERS OF CONGRESS AND NUMEROUS PUBLIC INTEREST GROUPS RESPECT THE FIRM AND BELIEVE ITS EVALUATIONS TO BE CREDIBLE WHITE HOUSE OFFICIALS WHO HAD BEEN NERVOUS ABOUT THE LEWINVHI REVIEW SAID THEY WERE PLEASED BY THE CONCLUSIONS TO HAVE SOMEONE COME OUT AND CONFIRM THE FACT THAT OUR ESTIMATE OF THE SUBSIDIES ARE CONSERVATIVE AND THAT WE GET SUBSTANTIAL DEFICIT REDUCTION IS I THINK REALLY A CRITICAL FINDING SAID KENNETH THORPE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ECONOMIST WHO OVERSAW THE ADMINISTRATION'S NUMBERCRUNCHING OPERATION THE WHITE HOUSE PREDICTS THE SAVINGS IN PUBLIC HEALTH SPENDING THROUGH THE YEAR 2000 WILL RESULT IN A 58 BILLION REDUCTION IN THE FEDERAL BUDGET DEFICIT LEWINVHI SAYS THE SHRINKAGE WILL BE 25 BILLION THE ADMINISTRATION'S FINANCING ESTIMATES HAVE BEEN CRITICIZED BY LAWMAKERS IN BOTH PARTIES AND DESPITE THE REPORT'S CONCLUSIONS LEWINVHI OFFICIALS EXPRESSED SOME DOUBT AT A NEWS CONFERENCE ABOUT THE FEASIBILITY OF SOME OF THE ADMINISTRATION'S SAVINGS PROJECTIONS THERE IS A LOT OF POTENTIAL FAT IN THE SYSTEM WHETHER YOU CAN GET IT OUT THIS WAY NO ONE KNOWS SAID ROBERT RUBIN LEWINVHI'S PRESIDENT I'VE BEEN ON RECORD SAYING THAT I THINK IT WILL BE DIFFICULT BUT NOT NECESSARILY UNDOABLE THE REPORT CONTAINS A NUMBER OF OTHER ESTIMATES THAT COULD CAUSE POLITICAL DIFFICULTIES FOR THE WHITE HOUSE FOR EXAMPLE THE ADMINISTRATION HAS BEEN SAYING THAT OVERALL EMPLOYER SPENDING ON HEALTH WON'T RISE UNDER THE CLINTON PLAN EVEN THOUGH THE WHITE HOUSE IS PROPOSING TO REQUIRE ALL FIRMS TO CONTRIBUTE TO PAYING THEIR WORKERS' HEALTH PREMIUMS LEWINVHI ESTIMATES THAT THE TOTAL COST TO EMPLOYERS IN 1998 THE FIRST YEAR THE CLINTON PLAN WOULD BE FULLY PHASED IN WOULD BE 293 BILLION HIGHER THAN UNDER THE CURRENT SYSTEM ALMOST ALL OF THE INCREASE HOWEVER WOULD COME FROM FIRMS THAT CURRENTLY DON'T INSURE THEIR WORKERS LEWINVHI OFFICIALS SAID THE COMPANY ANALYZED THE CLINTON PLAN ON ITS OWN INITIATIVE AND PAID FOR THE PROJECT ITSELF THE UNDERTAKING WASN'T SPONSORED BY ANY GOVERNMENT AGENCY OR PRIVATE GROUP MR LEWIN SAID 9312090046 931209 BUSINESS BRIEF PROVIDENCE HEALTH CARE INC COMMONWEALTH ASSOCIATES TRIES AGAIN TO REPLACE BOARD PROVIDENCE HEALTH CARE INC SAID A DELAWARE CHANCERY COURT RULED THAT COMMONWEALTH ASSOCIATES DIDN'T DELIVER ENOUGH SHAREHOLDER CONSENTS TO REPLACE PROVIDENCE'S BOARD BUT THE NEW YORK INVESTMENT BANKING FIRM HAS ALREADY MOUNTED ANOTHER ATTEMPT AND CONTENDS IT HAS CONSENTS REPRESENTING 55 OF THE SHARES OUTSTANDING OF PROVIDENCE COMMONWEALTH'S FIRST ATTEMPT INVOLVED SHAREHOLDERS OF RECORD AUG 27 WHILE THE SECOND INVOLVES SHAREHOLDERS OF RECORD NOV 11 PROVIDENCE A BEREA OHIO NURSING HOME OPERATOR SAID THE VALIDITY OF THIS MOST RECENT GROUP OF CONSENTS WILL AGAIN BE CONTESTED BY THE COMPANY COMMONWEALTH WHICH LED PROVIDENCE'S PUBLIC OFFERING SAID IN AUGUST THAT IT WANTED TO REPLACE PROVIDENCE'S BOARD SAYING IT WAS DISSATISFIED WITH THE ISSUER'S MANAGEMENT AND DISAPPOINTED WITH ITS RESULTS 9312090045 931209 BUSINESS BRIEF CISTRON BIOTECHNOLOGY INC FIRM ALLEGES IMMUNEX CORP USED PATENT TRADE SECRETS CISTRON BIOTECHNOLOGY INC SAID IT SUED IMMUNEX CORP ALLEGING MISAPPROPRIATION OF TRADE SECRETS IN A PATENT COVERING RECOMBINANT HUMAN INTERLEUKIN1 BETA CISTRON WHICH SAID IT IS THE EXCLUSIVE LICENSEE OF THE PATENT FILED THE SUIT IN US DISTRICT COURT IN NEW JERSEY IMMUNEX IS 535OWNED BY AMERICAN CYANAMID CO THE PINE BROOK NJ BIOTECHNOLOGY CONCERN IS SEEKING UNSPECIFIED DAMAGES INTERLEUKIN1 BETA IS A HUMAN IMMUNESYSTEM REGULATOR PRODUCED BY WHITE BLOOD CELLS THAT MAY HAVE APPLICATIONS IN TREATING CANCER AND WOUNDS CISTRON CLAIMS THAT THE SEATTLEBASED BIOTECHNOLOGY FIRM COPIED THE SEQUENCE OF THE PATENT LICENSED BY CISTRON IT CLAIMS IMMUNEX RAISED SUBSTANTIAL SUMS OF MONEY BY OBTAINING ITS OWN PATENT ON THE TECHNOLOGY AND ALLEGEDLY IMPROPERLY CLAIMING TO BE ITS INVENTOR AN IMMUNEX SPOKESWOMAN DECLINED TO COMMENT 9312090044 931209 BUSINESS BRIEF TELEDYNE INC GROUP OF SHAREHOLDERS SUES 12 CURRENT FORMER OFFICERS FOUR TELEDYNE INC SHAREHOLDERS SUED 12 TOP CURRENT AND FORMER OFFICERS OF THE COMPANY ALLEGING THE EXECUTIVES ENGAGED IN A CONTINUING COURSE OF ILLEGAL CONDUCT THE SUIT CLAIMS THE ALLEGED ILLEGAL CONDUCT DAMAGED TELEDYNE'S GOODWILL AND PROFITABILITY IN A 96PAGE COMPLAINT FILED IN STATE COURT IN LOS ANGELES EUGENE J BASS HERMAN KRANGEL LILLIAN KRANGEL AND MARSHALL WOLF RECOUNTED PREVIOUSLY REPORTED ACTS BY TELEDYNE OFFICIALS THAT INCLUDED SELLING SUBSTANDARD OR IMPROPERLY TESTED ELECTRONIC SWITCHES TO THE GOVERNMENT THE SUIT SEEKS UNSPECIFIED DAMAGES AND THE RETURN OF SALARIES AND OTHER REMUNERATION FROM THE DEFENDANT OFFICERS A TELEDYNE SPOKESWOMAN CONFIRMED THAT THE SUIT HAS BEEN FILED AND THAT THE COMPANY HAS SEEN IT SHE SAID TELEDYNE HAS NO COMMENT ON THE SUIT'S ALLEGATIONS 9312090043 931209 BUSINESS BRIEF UNITED DOMINION INDUSTRIES LTD STAKE IN DOMINION BRIDGE TO BE SOLD TO NEW COMPANY UNITED DOMINION INDUSTRIES LTD SAID IT AGREED IN PRINCIPLE TO SELL A MAJORITY INTEREST IN ITS DOMINION BRIDGE UNIT TO A NEW COMPANY OWNED PRIMARILY BY A MONTREAL INVESTOR GROUP UNITED DOMINION WILL OWN 15 OF THE NEW COMPANY'S COMMON SHARES AND WILL RECEIVE PREFERRED SHARES WITH A FACE AMOUNT EQUIVALENT TO DOMINION BRIDGE'S BOOK VALUE OR ABOUT 25 MILLION CANADIAN DOLLARS US189 MILLION UNITED DOMINION SAID IT ALSO AGREED TO PROVIDE ADDITIONAL CAPITAL FOR POSSIBLE FUTURE RESTRUCTURING OF DOMINION BRIDGE WHICH COULD RESULT IN A CHARGE OF UP TO 5 MILLION AGAINST UNITED DOMINION'S FOURTHQUARTER EARNINGS DOMINION BRIDGE HAD AN OPERATING LOSS OF ABOUT 7 MILLION FOR THE FIRST NINE MONTHS OF 1993 SALES FOR THE YEAR ARE EXPECTED TO TOTAL 160 MILLION THE NEW COMPANY WILL RETAIN THE DOMINION BRIDGE NAME AND WILL BE CONTROLLED BY MANSON GROUP A PRIVATELY HELD MAKER OF INDUSTRIAL INSULATION PRODUCTS UNITED DOMINION CHARLOTTE NC IS AN INDUSTRIAL ENGINEERING AND CONSTRUCTION CONCERN 9312090042 931209 BUSINESS BRIEF GEORGIAPACIFIC CORP UNIT SIGNS AGREEMENT TO SELL ENVELOPEMAKING BUSINESS GEORGIAPACIFIC CORP ATLANTA SAID ITS GP ENVELOPE HOLDINGS INC UNIT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS ENVELOPEMANUFACTURING BUSINESS TO A NEW COMPANY SPONSORED BY STERLING GROUP INC IN A STATEMENT GEORGIAPACIFIC DIDN'T DISCLOSE THE SALE PRICE BUT SAID IT EXPECTS TO RECEIVE 110 MILLION TO 120 MILLION IN PROCEEDS THE TRANSACTION INCLUDES 15 PLANTS THAT EMPLOY ABOUT 2500 PEOPLE ALL OF THE FACTORIES ARE OPERATED AS MAINWELL ENVELOPES AND WISCO ENVELOPES GEORGIAPACIFIC SAID IT EXPECTS TO COMPLETE THE SALE EARLY IN THE FIRST QUARTER OF 1994 SUBJECT TO APPROVAL BY THE COMPANY'S BOARD AND REGULATORS STERLING GROUP IS A PRIVATE FINANCIAL GROUP BASED IN HOUSTON 9312090041 931209 INTERNATIONAL BRIEF WINTERTHUR SWISS INSURANCE CO FIRM'S 28 STAKE IN HELVETIA TO BE SOLD TO SMALL INSURER WINTERTHUR SWISS INSURANCE CO ZURICH SAID IT IS SELLING ITS 28 STAKE IN THE HELVETIA VERSICHERUNGEN INSURANCE GROUP TERMS WEREN'T DISCLOSED BUT AT THE CURRENT SHARE PRICE THE STAKE WOULD BE VALUED AT ABOUT 300 MILLION FRANCS 51 MILLION THE BUYER WAS A SMALL INSURER PATRIA LEBENSVERSICHERUNG WITH WHICH HELVETIA ALREADY HAS A PARTNERSHIP THE TRANSACTION WOULD BOOST PATRIA'S STAKE TO 39 SWISS ANALYSTS APPLAUDED WINTERTHUR'S DECISION BECAUSE IT WILL BE ABLE TO USE THE PROCEEDS FOR MORE PROFITABLE INVESTMENTS A WINTERTHUR SPOKESMAN SAID THE GROUP WILL INVEST THE MONEY IN MORE PROMISING INSTRUMENTS BUT DIDN'T ELABORATE 9312090040 931209 BUSINESS BRIEF US LONG DISTANCE CORP COMPANY AGREES TO AMEND TERMS OF ITS CREDIT FACILITY US LONG DISTANCE CORP SAID IT AGREED TO AMEND THE TERMS OF ITS LOAN AGREEMENT WITH BELL ATLANTIC CAPITAL CORP A UNIT OF BELL ATLANTIC CORP PHILADELPHIA THE AMENDMENT WOULD REDUCE THE INTEREST RATE ON THE SAN ANTONIO TELECOMMUNICATIONS COMPANY'S REVOLVING LINE OF CREDIT TO 05 PERCENTAGE POINT ABOVE THE PRIME RATE FROM THE CURRENT 1375 PERCENTAGE POINTS AND WOULD LOWER CERTAIN FEES IT ALSO LETS US LONG DISTANCE IMMEDIATELY REPAY ANY PART OF THE LINE OF CREDIT WITH SURPLUS CASH THE COMPANY SAID IT USED THAT ABILITY TO REPAY 16 MILLION OF ITS CURRENT BORROWINGS UNDER THAT CREDIT FACILITY LEAVING A BALANCE OF 96 MILLION THE COMPANY SAID BORROWINGS UNDER THE CREDIT FACILITY WHICH GENERALLY HAVE RANGED FROM 25 MILLION TO 35 MILLION ARE USED TO ADVANCE TO CERTAIN BILLING CUSTOMERS AS MUCH AS 80 OF THE AMOUNTS OF THEIR ACCOUNTS RECEIVABLE UNDER THE AGREEMENT WHICH IS SUBJECT TO DEFINITIVE DOCUMENTATION BELL ATLANTIC WILL PROVIDE A THREEYEAR REVOLVING CREDIT LINE CONSISTING OF 45 MILLION IN THE FIRST AND SECOND YEARS AND AT US LONG DISTANCE'S OPTION 60 MILLION IN THE THIRD YEAR 9312090039 931209 EXPORTING LABOR WESTERN EUROPE FINDS THAT IT'S PRICING ITSELF OUT OF THE JOB MARKET WORK FLEES TO EAST EUROPE EC TAKES A HARD LOOK AT EMPLOYER MANDATES SO MUCH FOR 1992' EUPHORIA BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL THE GERMAN GARMENT COMPANY ADOLF AHLERS AG EMPLOYED SOME 5000 MANUAL WORKERS IN GERMANY BACK IN 1970 TODAY IT STILL EMPLOYS 5000 WORKERS BUT ONLY 40 OF THEM ARE IN GERMANY MOST OF THE OTHER JOBS HAVE BEEN MOVED TO SRI LANKA AND MOST RECENTLY TO POLAND FOR JAN AHLERS SON OF THE FOUNDER AND NOW CHIEF EXECUTIVE THE REASON IS SIMPLE IT COSTS 40 MARKS PER HOUR 25 TO HIRE A MANUAL LABORER IN GERMANY INCLUDING BENEFITS IN POLAND THE FIGURE IS 270 MARKS 168 PRODUCTIVITY THERE IS ALMOST AS HIGH AND THE QUALITY IS GOOD 90 OF ITS POLISH PRODUCTION WHICH INCLUDES PIERRE CARDIN SPORTSWEAR MADE UNDER LICENSE IS SOLD IN THE WEST IN THE GARMENT INDUSTRY MR AHLERS SAYS BLUNTLY YOU HAVE TO GO EAST EVEN WHEN EUROPE'S CURRENT RECESSION FINALLY ENDS UNEMPLOYMENT IS APT TO KEEP RISING THE MAIN REASON WEST EUROPEAN NATIONS ARE PRICING THEMSELVES OUT OF JOBS PARTICULARLY LOWSKILLED ONES IN A TREND THAT GOVERNMENTS CAN'T OR WON'T REVERSE AS MANUFACTURING COSTS HAVE SOARED IN RECENT YEARS COMPANY AFTER COMPANY IS RELOCATING PART OF ITS PRODUCTION MANY ARE NOW BEING LURED BY POSTCOMMUNIST EASTERN EUROPE WHICH IS EMERGING AS A LOWCOST AND POTENTIALLY HIGHGROWTH REGION ON THEIR DOORSTEP A KIND OF EUROPEAN MEXICO AND SOUTHEAST ASIA ROLLED INTO ONE A SURVEY OF 10000 COMPANIES BY THE GERMAN CHAMBER OF COMMERCE AND INDUSTRY SHOWS THAT 30 OF MANUFACTURERS ARE CONSIDERING PLANS TO SHIFT SOME PRODUCTION IN THE NEXT THREE YEARS WITH EASTERN EUROPE HEADING THE LIST OF DESTINATIONS THE CHAMBER ESTIMATES THIS RELOCATION WILL CREATE 250000 JOBS ABROAD ANNUALLY FOR THE NEXT THREE YEARS WHILE TEXTILE AND CLOTHING COMPANIES ARE LEADING THE EXODUS THEY ALONE ACCOUNT FOR 70 OF THE JOB LOSSES IN WESTERN EUROPEAN MANUFACTURING IN THE PAST FOUR YEARS MANY LABORINTENSIVE INDUSTRIES ARE FOLLOWING THAT IS GOOD NEWS FOR HUNGARY POLAND AND THE CZECH REPUBLIC THE EASTERN COUNTRIES MOST FAVORED DESPITE THE MANY DIFFICULTIES INVOLVED IN RELOCATING THERE BUT THE FLIP SIDE IS DIRE FOR WESTERN EUROPE IT MEANS A FURTHER EROSION OF ITS COMPETITIVE POSITION AND MORE LAYOFFS EC UNEMPLOYMENT HAS DOUBLED IN THE PAST 15 YEARS AND NOW STANDS AT 11 OF THE WORK FORCE WITH NO LETUP IN SIGHT OF 1500 CHIEF EXECUTIVES ACROSS THE CONTINENT WHO TOOK PART IN A RECENT SURVEY FOR UNITED PARCEL SERVICE 43 EXPECT TO CUT JOBS IN THE NEXT 12 MONTHS THE MOOD HAS GROWN SO BLEAK THAT GOVERNMENTS FOR WHOM UNEMPLOYMENT IS NOW THE BIGGEST AND MOST EXPLOSIVE ISSUE ARE FINALLY TAKING A HARD LOOK AT THE ROOT CAUSES BUT THEIR FINDINGS PROVIDE LITTLE SOLACE SOME OF THE SOCIAL AND LABOR POLICIES PUT IN PLACE OVER THE PAST 40 YEARS TO WARD OFF POVERTY IT NOW TURNS OUT ARE IN FACT INCREASING SOCIAL MISERY THAT IS BECAUSE THE STATUS QUO WITH ITS TANGLE OF LABOR REGULATIONS AND RISING COSTS FOR EMPLOYERS ACTS AS A MAJOR DISINCENTIVE TO JOBCREATION AND A POWERFUL INCENTIVE TO MOVING PRODUCTION ELSEWHERE IT'S TYPICAL OF THE QUIRKS OF THE SYSTEM THAT WAGES IN SOME INDUSTRIES INCLUDING TEXTILES HAVE CONTINUED TO RISE SHARPLY DESPITE RECESSION AND LAYOFFS IN SPAIN FOR EXAMPLE AVERAGE WAGES HAVE RISEN BY MORE THAN 6 THIS YEAR EVEN THOUGH THE ECONOMY IS CONTRACTING AND UNEMPLOYMENT IS 22 THE HIGHEST IN THE EC AMID THE FLOOD OF STATISTICS NOW BEING PORED OVER ONE INTERNATIONAL COMPARISON STANDS OUT BETWEEN 1970 AND 1990 THE NUMBER OF PEOPLE EMPLOYED IN THE US ROSE 52 WHILE REAL LABOR COSTS WAGES AND NONWAGE CHARGES AFTER ADJUSTMENT FOR INFLATION ROSE ABOUT 10 IN THE 12NATION EUROPEAN COMMUNITY THIS RATIO WAS REVERSED REAL LABOR COSTS SOARED 60 WHILE EMPLOYMENT ROSE 10 NOT NEARLY ENOUGH TO PROVIDE WORK FOR THE GROWING NUMBERS IN SEARCH OF IT TODAY THOSE WITHOUT SPECIAL SKILLS HAVE LITTLE HOPE OF FINDING WORK AND EVEN WELLTRAINED INDUSTRIAL WORKERS ARE AT RISK A RECENT OPINION POLL IN FRANCE FOR EXAMPLE FOUND THAT 68 OF PEOPLE NOW PERSONALLY FEAR THEY MIGHT LOSE THEIR JOBS EVEN WHEN THE ECONOMY PICKS UP AGAIN EXPERIENCE SUGGESTS UNEMPLOYMENT WON'T DROP MUCH IF AT ALL A STUDY BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SHOWS THAT EUROPE AS A WHOLE HAS FAILED TO CREATE ANY NET NEW JOBS IN THE PRIVATE SECTOR OVER THE PAST 20 YEARS THE ONLY JOB GROWTH WAS IN THE NONCOMMERCIAL STATE SECTORGOVERNMENT BUREAUCRACIES SEEKING TO DIG THEIR WAY OUT OF THIS HOLE MANY WEST EUROPEAN NATIONS ARE FOR THE FIRST TIME CONSIDERING ACTION THAT WHILE STILL UNPALATABLE WOULD HAVE SEEMED IMPOSSIBLE A DECADE AGO AT AN EC SUMMIT MEETING TOMORROW JACQUES DELORS PRESIDENT OF THE COMMUNITY'S EXECUTIVE COMMISSION IS DUE TO DELIVER A MAJOR REPORT ON JOBS AND COMPETITIVENESS THAT HE HOPES WILL SPUR GOVERNMENT ACTION DRAFTERS OF THE REPORT SAY THE ANSWER IS NOT TO CUT WAGES IN THE HOPE OF MATCHING POLISH OR SRI LANKAN LEVELS INSTEAD IT IS EMPLOYERS' MANDATORY NONWAGE COSTS SUCH AS SOCIAL SECURITY AND HEALTH INSURANCE THAT ARE THE TARGET AT THE SAME TIME TRAINING MUST BE IMPROVED TO RAISE WORK FORCE SKILLS AND WAGE INCREASES KEPT TO LESS THAN PRODUCTIVITY GAINS A FEW STEPS ARE ALREADY BEING TAKEN SPAIN'S GOVERNMENT IS CHANGING LEGISLATION THAT MAKES IT DIFFICULT AND PROHIBITIVELY EXPENSIVE TO FIRE WORKERS IN THE HOPE THAT COMPANIES WON'T AVOID HIRING FOR THIS REASON GERMANY HAS DONE A LONG STUDY PINPOINTING STRUCTURAL DEFICIENCIES THAT MAKE IT UNCOMPETITIVE ITALY HAS ENDED THE PRACTICE OF AUTOMATIC WAGE RISES LINKED TO INFLATION AND FRANCE IS CONSIDERING CUTS IN COMPULSORY BENEFIT LEVIES FOR FIRMS THAT HIRE LOWWAGE WORKERS BUT ANY MEASURES TO ROLL BACK THE COMPREHENSIVE WELFARE STATE EC NATIONS HAVE CREATED IN THE POSTWAR PERIOD ARE POLITICALLY PERILOUS SPAIN ITALY AND BELGIUM ARE ALREADY BEING GRIPPED BY WAVES OF STRIKES AND PROTESTS AGAINST CUTBACKS AND GERMANY AND FRANCE COULD BE NEXT INCREASINGLY 1994 IS BEING BILLED AS A YEAR OF LABOR STRIFE IF ANYTHING THAT WILL SPEED THE EXODUS OF MANUFACTURING JOBS IN WESTERN EUROPE LABOR IS BECOMING AN ENDANGERED SPECIES SAYS THOMAS RIECKER DRIVING HIS BMW THROUGH THE SNOWLADEN COUNTRYSIDE OF SLOVAKIA MR RIECKER IS MANAGING DIRECTOR OF AN AUSTRIAN COMPANY THAT MAKES CUTLERY BERNDORF BESTECK GMBH TWO YEARS AGO IT INVESTED 5 MILLION IN A SLOVAK CUTLERY COMPANY DESPITE MISGIVINGS ABOUT POLITICAL STABILITY AND WHETHER WESTERN STANDARDS COULD BE MET THE EAST IS ONLY WORTH SOMETHING IF YOU CAN GET THE QUALITY RIGHT JUST HAVING LOW WAGES ISN'T ENOUGH MR RIECKER NOTES SOME DOUBTS STILL LINGER BUT THE FIRM PRODUCED 25 MILLION FORKS AND SPOONS IN ITS FIRST YEAR AND BERNDORF IS AIMING TO INCREASE THAT TO SIX MILLION AND START MAKING KNIVES TOO TO IMPROVE QUALITY AND PRODUCTIVITY BERNDORF HAS PUT IN NEW TOILETS AS WELL AS NEW MACHINERY AT THE DINGY SLOVAK FACTORY IN A RURAL AREA 100 MILES EAST OF BRATISLAVA PRODUCTION SO FAR IS FAIRLY SIMPLE INCLUDING AIRLINE CUTLERY TECHNICALLY SOPHISTICATED ITEMS OF STERLING SILVER AND SILVERPLATE ARE STILL MADE IN AUSTRIA BUT MR RIECKER HOPES TO TAKE ADVANTAGE OF LOW WAGES AND RISING PRODUCTIVITY TO MOVE MORE SOPHISTICATED PRODUCTION TO SLOVAKIA AS WELL HIS LOGIC HAS BECOME A TRUMP CARD FOR THE NATIONS OF THE EAST IN PRAGUE WARSAW AND BUDAPEST FOREIGNTRADE OFFICIALS WAX LYRICAL WHEN DESCRIBING THEIR ADVANTAGES A SKILLED WORK FORCE EAGER TO LEARN WESTERN TECHNIQUES WAGES A FRACTION OF THOSE IN THE WEST AND ABOVE ALL THEIR OWN DYNAMIC PROSPECTS FOR GROWTH COMPARED WITH WESTERN EUROPE'S STAGNATION IN PRAGUE CZECHINVEST A NEW GOVERNMENT AGENCY DESIGNED TO HELP FOREIGN INVESTORS SOLVE ANY PROBLEMS THEY MIGHT HAVE PRODUCES GRAPHICS SHOWING THAT A GERMAN AUTO WORKER EARNS IN NINE HOURS WHAT A CZECH AUTO WORKER IS PAID IN A MONTH AND UNLIKE MEXICO SAYS JAN A HAVELKA CZECHINVEST'S DIRECTOR WE WERE ARTIFICIALLY DROPPED TO A LOW ECONOMIC LEVEL BY THE FORMER COMMUNIST REGIME BUT WE HAVE INHERITED AN EXTREMELY WELLTRAINED WORK FORCE SUCH TALK IS SWEET MUSIC TO MANY WESTERN CORPORATE EARS AGREEMENTS BETWEEN THESE EASTERN NATIONS AND THE EC ENSURE THAT MOST OF THEIR PRODUCTS WON'T FACE STIFF TARIFFS EVEN DAIMLERBENZ AG GERMANY'S BLUECHIP AUTO MAKER IS NOW CONSIDERING THE CZECH REPUBLIC AS THE SITE OF A PLANNED NEW PLANT ALONGSIDE FRANCE GERMANY AND THE UK ACCOMPANYING THE SALES PITCH ARE SOME REAL SUCCESSES A GERMAN SUBSIDIARY OF TRW INC THE CLEVELAND AUTOPARTS MAKER SET UP A COMPANY NEAR PRAGUE A YEAR AGO AFTER AN INITIAL PERIOD OF SUBCONTRACTING IT MAKES SWITCHES FOR OILPRESSURE GAUGES AMONG OTHER THINGS WITH CAREFUL TRAINING AND STRICT MANAGEMENT SUPERVISION IT HAS SEEN THE PRODUCTIVITY OF SOME OF ITS CZECH WORKERS DOUBLE TO ALMOST THE SAME LEVEL AS THEIR GERMAN COUNTERPARTS ACCORDING TO RONY VOGEL THE PLANT'S GERMAN MANAGER AS A RESULT SOME LOWSKILLED WORKERS BACK IN GERMANY HAVE BEEN LAID OFF WITH THE EMERGENCE OF EASTERN EUROPE AS A LOWCOST MANUFACTURING BASE IN THEIR BACKYARD SOME EXECUTIVES ARE STARTING TO WONDER WHETHER EUROPEAN CORPORATIONS WERE RIGHT TO FOCUS SO HEAVILY ON INVESTMENTS IN WESTERN EUROPE FUELED BY THE EC'S 1992 PROGRAM WHICH STROVE TO REMOVE INTERNAL TRADE BARRIERS AND CREATE A TRUE COMMON MARKET EUROPEAN COMPANIES INCREASED THEIR INVESTMENTS IN THE EC BY A STAGGERING 800 BETWEEN 1984 AND 1989 BUT THE EUPHORIA TRIGGERING THAT SPREE HAS LONG GONE MOST FORECASTS SHOW THE EC WILL CONTINUE TO HAVE AT BEST SLUGGISH GROWTH IN THE NEXT FEW YEARS AND ITS PLANS FOR FURTHER INTEGRATION HAVE BECOME BOGGED DOWN BY CONTRAST MARKETS ELSEWHERE THAT EUROPEAN COMPANIES NEGLECTED IN THEIR RUSH TO INVEST IN EUROPE ESPECIALLY IN ASIA HAVE MUCH BRIGHTER PROSPECTS ALTHOUGH THE CREATION OF A SINGLE MARKET IS STILL WIDELY VIEWED IN WESTERN EUROPE AS A HISTORIC ACCOMPLISHMENT EVEN SOME GOVERNMENTS ACKNOWLEDGE THAT EUROPE MAY HAVE MISSED GOOD OPPORTUNITIES OVERSEAS IN A WIDERANGING REPORT ON GERMANY'S STRUCTURAL PROBLEMS ISSUED EARLIER THIS YEAR THE BONN GOVERNMENT STATES THAT THE NEGLECT OF MANY DYNAMIC MARKETS IN SOUTHEAST ASIA NORTH AND LATIN AMERICA GIVES SUBSTANTIAL CAUSE FOR CONCERN GERMAN COMPANIES IN FACT HAVE BEEN QUICK TO CATCH THEIR FOOTING HELPED BY GEOGRAPHICAL PROXIMITY AND LONGSTANDING HISTORICAL TIES WITH THE REGION THEY AND AUSTRIAN FIRMS ARE LEADING THE MOVE EAST THE US IS CATCHING UP FAST IT NOW IS THE SECOND LARGEST FOREIGN INVESTOR IN THE CZECH REPUBLIC AND A BIG PLAYER IN HUNGARY AND POLAND TOO FRANCE AND OTHER WESTERN EUROPEANS ALSO ARE LOOKING TO THE EASTERN LABOR MARKETS SECURIDEV A FRENCH LOCK MAKER JOINED WITH A GERMAN PARTNER TO BUY A HUNGARIAN COMPANY ELZETT TWO YEARS AGO AND NOW MAKES MANY OF ITS HOUSEHOLD LOCKS THERE PROFIT MARGINS ON THESE PRODUCTS ARE SLIM SO SECURIDEV HAS BENEFITED FROM HUNGARIAN WAGE LEVELS THAT ARE ABOUT 25 OF FRENCH ONES EVEN THOUGH PRODUCTIVITY IS STILL LOWER GILLES BERTAUX DEPUTY DIRECTOR GENERAL OF THE FRENCH COMPANY SAYS RELOCATING HAS HELPED US TO COMPETE IN MARKETS WHERE WE WERE DOING BADLY BEFORE HE ADDS DON'T TAKE THE HUNGARIANS FOR UNDERDEVELOPED THEY ARE VERY SOPHISTICATED INEVITABLY FOR COUNTRIES FORCED INTO THE STRAITJACKET OF SOVIET CENTRAL PLANNING FOR 40 YEARS THERE ARE STILL MANY PROBLEMS SPEAKING OF SLOVAK WORKERS WHO SOMETIMES WANDER OFF THE PRODUCTION LINE TO GO SHOPPING MR RIECKER OF BERNDORF SAYS I SOMETIMES WONDER WHETHER THEY HAVE THE STAMINA TO WORK FOR EIGHT HOURS BUT BACK HOME THESE COMPANIES FACE PROBLEMS THAT ARE JUST AS INTRACTABLE IF NOT MORE SO SECURIDEV'S GERMAN PARTNER ROTO FRANK AG IS REQUIRED TO GIVE ITS WORKERS IN GERMANY A FIVEMINUTE BREAK EVERY HOUR AND IT IS FREQUENTLY THE TARGET OF STRIKES BY MILITANT UNIONS IN HUNGARY THESE THINGS JUST DON'T EXIST SAYS GERHARD FRANK A ROTO FRANK BOARD MEMBER ALSO MISSING ARE RIGID LABOR RULES IN SPAIN IT CAN TAKE MORE THAN TWO YEARS TO NEGOTIATE LAYOFFS AND THE BANK OF SPAIN ESTIMATES THAT EACH DISMISSAL COSTS AN AVERAGE OF 32000 BY CONTRAST IN EASTERN EUROPE UNPRODUCTIVE WORKERS CAN BE LAID OFF QUICKLY AND SEVERANCE PAY USUALLY IS JUST TWO OR THREE MONTHS' WAGES IF THAT MR RIECKER SAYS SOME OF HIS SLOVAK WORKERS PACKED UP AND LEFT OF THEIR OWN ACCORD BECAUSE THEY COULDN'T KEEP UP WITH THE PACE SET BY BERNDORF'S AUSTRIAN MANAGERS SPAIN AND PORTUGAL MAY END UP BEING THE BIGGEST LOSERS IF PRODUCTION DOES CONTINUE TO MOVE TO EASTERN EUROPE BOTH ENJOYED A BOOM AFTER THEY JOINED THE EC IN 1986 AS LOWCOST PRODUCERS INSIDE THE COMMUNITY BUT NOW THEY FACE STIFF COMPETITION FROM THE OTHER SIDE OF EUROPE TEXTILES AND CLOTHING ARE A PRIME EXAMPLE PORTUGAL WHICH HAS A SIZABLE INDUSTRY FOR YEARS BENEFITED FROM A RELATIVELY LOWCOST BASE BUT NOW ITS DOMESTIC INDUSTRY IS UNDER INTENSE COST PRESSURE AS IS THE REST OF WESTERN EUROPE'S OVER THE PAST FOUR YEARS THE EUROPEAN CLOTHING AND TEXTILE INDUSTRY HAS SHED 434000 JOBS WITH MORE THAN 150000 VANISHING IN 1992 ALONE AS 2000 COMPANIES SHUT DOWN AT THE SAME TIME EAST EUROPEAN PLANTS HAVE BEEN BOOMING LARGELY BECAUSE OF MASS SUBCONTRACTING BY WESTERN COMPANIES THE VOLUMES PRODUCED UNDER THESE ARRANGEMENTS HAVE TRIPLED SINCE 1988 ACCORDING TO AN EC STUDY POLAND HAS LEAPT INTO THE TOP RANKS OF NATIONS TRADING WITH THE COMMUNITY IN TEXTILES AND CLOTHING ALONGSIDE ASIAN LANDS THE SPEED OF TRANSFORMATION OF THAT INDUSTRY AND OTHERS IS GIVING MANY PAUSE THE RISE OF EASTERN EUROPE AS A LOWCOST MANUFACTURING BACKYARD WILL EVENTUALLY PROVIDE NEW MARKETS FOR MANY WESTERN COMPANIES SAVING AND PERHAPS CREATING JOBS FOR BETTERTRAINED WORKERS BUT BARRING SOME DECISIVE GOVERNMENT ACTION THE SHORTERTERM OUTLOOK FOR MOST AND THE LONGERTERM PROSPECTS FOR THE UNSKILLED LOOKS BLEAK PRAGUE IS CLOSER TO PARIS THAN ROME OR MADRID SAYS JEAN ARTHUIS A FRENCH SENATOR IN A REPORT ON THE CONSEQUENCES OF INDUSTRIAL RELOCATION AS EASTERN EUROPE ADAPTS ITS INDUSTRY TO HIGHER QUALITY AND BETTER PRODUCTIVITY HE WARNS THE COMPETITION ON COSTS WILL BE COMPREHENSIVE BRUTAL AND IRREVOCABLE 9312090038 931209 FOREIGN EXCHANGE DOLLAR ADVANCES AGAINST YEN SPURRED BY GROWING FEARS OF TURMOIL IN JAPAN BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GROWING CONCERN OVER JAPAN'S ECONOMIC AND POLITICAL SITUATION LIFTED THE DOLLAR AGAINST THE YEN WEDNESDAY THE DOLLAR WAS SLUGGISH AGAINST MOST OTHER CURRENCIES THOUGH RISING MODERATELY AGAINST THE MARK AND EASING IN RELATION TO STERLING THE FRENCH FRANC MEANWHILE ROSE AGAINST THE MARK RETURNING TO ITS FORMER NARROW RANGE IN EUROPE'S EXCHANGE RATE MECHANISM FOR THE FIRST TIME SINCE IT WAS SENT REELING IN THIS SUMMER'S EUROPEAN CURRENCY CRISIS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17075 MARKS UP FROM 17020 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10888 YEN UP FROM 10745 YEN STERLING WAS TRADING AT 14950 UP FROM 14925 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10873 YEN AND AT 17095 MARKS THE YEN DREW THE MOST INTEREST IN WEDNESDAY'S TRADING DEALERS SAID WEAKENING EARLY IN THE DAY ALONG WITH ANOTHER DROP IN THE TOKYO STOCK MARKET AND GROWING SIGNS OF POLITICAL TURMOIL IN JAPAN THE JAPANESE CURRENCY DROPPED FURTHER LATER IN THE DAY AS CONFUSION OVER SOME COMMENTS BY US FEDERAL RESERVE GOVERNOR WAYNE ANGELL CAUSED SOME AGGRESSIVE DOLLAR BUYING TRADERS WERE WORRIED THAT INCREASING SIGNS OF TENSION WITHIN JAPAN'S RULING COALITION OVER THE ISSUE OF RICE IMPORTS COULD DERAIL URGENTLY NEEDED GOVERNMENT ACTION TO HELP STIMULATE THE ECONOMY AND THEY ADDED THAT THE RICE CONFLICT COULD EVEN IMPERIL THE SURVIVAL OF THE SHAKY COALITION OVER THE LONGER TERM JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA IS WIDELY EXPECTED TO REVERSE A DECADESOLD JAPANESE POLICY AND LIFT A BAN ON RICE IMPORTS WITHIN THE NEXT FEW DAYS BUT THE PLANNED MOVE APPARENTLY HAS RILED THE SOCIALIST PARTY WHICH FORMS THE LARGEST BLOC IN THE SEVENPARTY RULING COALITION AND WHICH COULD POSSIBLY BRING DOWN THE GOVERNMENT IF IT WITHDREW ITS SUPPORT THERE'S A RISK THAT MR HOSOKAWA'S GOVERNMENT IS IN TROUBLE SAID JACK GRIFFEN MANAGER OF CORPORATE FOREIGN EXCHANGE AT FUJI BANK IN NEW YORK EVEN IF THE GOVERNMENT RIDES OUT THE CONTROVERSY ANALYSTS WORRY THAT THE TURMOIL WILL DELAY FURTHER ACTION TO STIMULATE JAPAN'S ECONOMY AND PARTICULARLY TAX CUTS THAT MANY OBSERVERS HAVE URGED THE JAPANESE TO IMPLEMENT THAT CONCERN PUSHED UP THE DOLLAR TO AROUND 10840 YEN IN ASIAN AND EARLY EUROPEAN TRADING THE US CURRENCY ADDED TO THOSE GAINS WHEN A WIRE SERVICE REPORTED THAT THE FED'S MR ANGELL HAD SAID IN LONDON THAT HE WOULD LIKE TO SEE THE DOLLAR AT ABOUT 120 YEN THOUGH MR ANGELL DENIED HE HAD SAID THAT TRADERS SAID THE INITIAL REPORT TOUCHED OFF A SHARP ROUND OF DOLLAR BUYING PUSHING THE CURRENCY TO AN INTRADAY HIGH OF 10920 YEN AND MR ANGELL'S DENIAL FAILED TO SAP MUCH OF THE DOLLAR'S STRENGTH AS PLAYERS DECIDED THAT JAPAN'S BLEAK ECONOMIC SITUATION MAKES IT MORE COMFORTABLE TO BE IN DOLLARS TO ME IT'S NOT AN ECONOMY THAT I WOULD BE A VERY BIG INVESTOR IN SAID FUJI BANK'S MR GRIFFEN ADDING THINGS ARE DEFINITELY GOING TO GET WORSE BEFORE THEY GET BETTER 9312090037 931209 SHOP TALK COMPUTER LINKS ERODE HIERARCHICAL NATURE OF WORKPLACE CULTURE GROUPWARE' NETWORKS GROW OPENING NEW AVENUES OF COOPERATION CONFLICT CORPORATE NERVOUS SYSTEM' BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL EMPLOYEES OF CHEMICAL BANKING CORP HAD BEEN SHAKEN BY WORKFORCE CUTS REORGANIZATIONS AND A PENDING MERGER RUMORS OFTEN RACED THROUGH THE RANKS SAPPING PRODUCTIVITY AND MORALE BUT BRUCE HASENYAGER FOUND A WAY TO SQUELCH THE GOSSIP IN THE BANK'S CORPORATESYSTEMS DIVISION THE SENIOR VICE PRESIDENT LET EMPLOYEES POST ANONYMOUS QUESTIONS ON AN ELECTRONICBULLETIN BOARD ACCESSIBLE TO ANYONE WHO WAS ON THE OFFICE COMPUTER NETWORK THEN HE RESPONDED TO THE QUESTIONS ONLINE IT BECAME A POWERFUL TOOL FOR BUILDING TRUST MR HASENYAGER SAYS WE COULD KILL OFF THE CRAZY RUMORS WHEN IT WAS WHISPERED AROUND THE WATER COOLER THAT PART OF OUR GROUP'S WORK MIGHT BE CONTRACTED OUT TO IBM I HAD A WAY TO TELL EVERYONE AT ONCE THAT IT WAS BALONEY BUT CHEMICAL'S ELECTRONIC WATER COOLER SOON SPUN OUT OF CONTROL WHEN MR HASENYAGER RESIGNED LAST YEAR FOLLOWING THE COMPLETION OF CHEMICAL'S MERGER WITH MANUFACTURERS HANOVER TRUST HIS SUCCESSOR BECAME UNCOMFORTABLE WITH THIS UNRULY FORUM AFTER BARBED CRITICISM OF MANAGEMENT BEGAN APPEARING ON THE SYSTEM THE NEW EXECUTIVE PULLED THE PLUG COMPUTER NETWORKS AND THE STICKY MANAGEMENT ISSUES THEY PRESENT ARE SPREADING ACROSS THE WORKPLACE IN THE FIRST WAVE OF DESKTOP COMPUTERIZATION WORKERS GENERALLY USED THEIR MACHINES TO PERFORM TASKS IN ISOLATION SUCH AS WRITING CREATING A FINANCIAL SPREADSHEET OR DESIGNING GRAPHICS OR PRODUCTS BUT AS MORE AND MORE OFFICE COMPUTERS ARE TIED TOGETHER IN NETWORKS USING CABLES OR PHONE LINES SERVERS THAT STORE DATA AND DIRECT TRAFFIC AND A NEW CLASS OF SOFTWARE CALLED GROUPWARE THE NATURE OF PERSONAL COMPUTING IS CHANGING AND OFFICE LIFE IS CHANGING ALONG WITH IT ELECTRONIC MAIL IS PROBABLY THE SIMPLEST AND MOST FAMILIAR FORM OF GROUPWARE IN WHICH NOTES ARE ZAPPED ACROSS A NETWORK BETWEEN TWO DESKTOP PCS MORE SOPHISTICATED GROUPWARE PROGRAMS CONNECT MANY PEOPLE TOGETHER AT THE SAME TIME OFTEN FUNCTIONING LIKE A SUITE OF ELECTRONIC CONFERENCE ROOMS WHERE MANY CONVERSATIONS CAN TAKE PLACE AT THE SAME TIME THE PROGRAMS CAN ALSO COLLECT THESE SILENT CONVERSATIONS AND CREATE AN ELECTRONIC TRANSCRIPT AND THEY ARE NOT LIMITED TO WORDS SOME GROUPWARE PROGRAMS CAN SIFT SORT AND TRANSMIT SCANNED IMAGES SOUND AND EVEN VIDEO BECAUSE THEY ENABLE HUNDREDS OF WORKERS TO SHARE INFORMATION SIMULTANEOUSLY GROUPWARE NETWORKS CAN GIVE LOWLY OFFICE WORKERS INTELLIGENCE PREVIOUSLY AVAILABLE ONLY TO THEIR BOSSES NETWORKS ALSO CAN GIVE THE RANKANDFILE NEW ACCESS THE ABILITY TO JOIN IN ONLINE DISCUSSIONS WITH SENIOR EXECUTIVES IN THESE INTERACTIONS PEOPLE ARE JUDGED MORE BY WHAT THEY SAY THAN BY THEIR RANK ON THE CORPORATE LADDER THE CULTURAL EFFECT IS ENORMOUS SAYS BILL WILSON A MANAGER AT JOHNSON & HIGGINS A NEW YORK INSURANCE BROKERAGE FIRM THAT LINKS ITS PROFESSIONAL STAFF WITH NEW NETWORK SOFTWARE IT'S HELPING TO DISSOLVE THE OLD CORPORATE HIERARCHY STUDIES BY THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND OTHERS SHOW THAT GROUPWARE CAN MAKE DESIGN AND SALES TEAMS MORE EFFICIENT SAVE TIME AND BRINGS COMPANIES CLOSER TO CUSTOMERS AND SUPPLIERS LOTUS DEVELOPMENT CORP PRESIDENT JIM MANZI SAYS HIS COMPANY'S NOTES SOFTWARE FOR NETWORKS CREATES ELECTRONIC KEIRETSU HIGHTECH VERSIONS OF INTEGRATED JAPANESE BUSINESS GROUPS SALES OF NOTES DOUBLED THIS YEAR TO 100 MILLION BUT THE PROLIFERATION OF NETWORKS CAN ALSO BRING UNINTENDED TENSIONS IN A CORPORATE CULTURE WHERE INFORMATION IS ALREADY JEALOUSLY GUARDED SOME COMPANIES ARE FINDING EMPLOYEES UNWILLING TO SHARE THEIR BEST WORK IN NETWORK DISCUSSIONS MANAGERS LIKE THE ONES AT CHEMICAL OFTEN FEEL THE NEED TO CONTROL WHAT GOES OUT ACROSS THE NETWORK AND SOFTWARE SUCH AS NOTES CAN RAISE THE STAKES BY RECORDING WHEN SOMEONE FAILS TO MEET A COMMITMENT SUCH AS FINISHING A REPORT ON TIME AND THEN MAKE THIS FAILURE PLAIN TO HUNDREDS OF COLLEAGUES ANOTHER PROBLEM WITH NETWORKS AND GROUPWARE CAN BE INFORMATION OVERLOAD TO HELP SIFT THROUGH IT ALL SOFTWARE MAKERS ARE WORKING ON AGENTS NEW TYPES OF PROGRAMS THAT ROAM THE NETWORK TO LOOK FOR INFORMATION THEIR KEEPER COULDN'T OTHERWISE FIND SOME NETWORKS EVEN OFFER A NOVEL WAY TO HOLD DOWN UNWANTED INFORMATION BOZO FILTERS THAT CAN BE ACTIVATED SECRETLY BY A NETWORK USER TO BLOCK OUT MESSAGES FROM THE PEOPLE HE OR SHE REALLY DOESN'T WANT TO HEAR FROM THE PROMISE AND PERILS OF NETWORKS ARE COMING INTO FOCUS AS MORE AND MORE WORKPLACES GET WIRED FORRESTER RESEARCH OF CAMBRIDGE MASS FORECASTS THAT 22 MILLION OFFICE PCS OR NEARLY HALF OF THOSE IN THE US WILL BE NETWORKED BY THE END OF NEXT YEAR UP 54 FROM 1992 THAT PACE IS REFLECTED IN THE SURGING SALES AND STOCK PRICES OF NETWORK EQUIPMENT AND SOFTWARE MAKERS SUCH AS CISCO SYSTEMS INC 3COM CORP CABLETRON SYSTEMS INC NOVELL INC LOTUS AND OTHERS LIKE THE TELEPHONE GROUPWARE ISN'T VERY USEFUL UNLESS THE PEOPLE YOU NEED TO REACH ARE USING IT BUT WHEN SMALL GROUPS WITHIN A COMPANY LINK UP THE NETWORK OFTEN SPREADS RAPIDLY TO OTHER PARTS OF THE ORGANIZATION A PROCESS FIRST BOSTON CORP ANALYST PAUL JOHNSON CALLS THE KUDZU EFFECT ALLUDING TO THE PROLIFIC VINE AT CHASE MANHATTAN BANK IT SPREAD RAPIDLY AFTER ITS INTRODUCTION IN 1991 AND NOW LINKS 5200 BANKERS WORLDWIDE IT'S BECOMING A TEAM MEMORY OR CORPORATE NERVOUS SYSTEM SAYS CRAIG GOLDMAN THE CHIEF INFORMATION OFFICER THIS NEW ELECTRONIC LANDSCAPE CAN FOSTER AN EGALITARIAN SENSE OF EMPOWERMENT AMONG EMPLOYEES OR IT CAN BE A TOOL OF AUTHORITARIAN MANAGERS LEADING TO LOSS OF WORKPLACE PRIVACY FOR BETTER OR WORSE IT'S A POWERFUL MEANS OF AMPLIFYING THE STYLE AND CHARACTER OF A COMPANY AND ITS MANAGERS MR HASENYAGER SAYS AT MTV NETWORKS GROUPWARE BECAME A NEW WEAPON FOR THE AFFILIATE SALES FORCE WHEN THE VIACOM INC UNIT WAS BATTLING LAST SUMMER AGAINST RIVAL TURNER BROADCASTING SYSTEM INC'S CARTOON CHANNEL TRYING TO GET CABLE OPERATORS TO CARRY MTV'S NEW COMEDY CENTRAL NETWORK INSTEAD SALESMEN IN SOME AREAS WERE MEETING UNEXPECTED RESISTANCE THEN A SALESWOMAN IN CHICAGO DISCOVERED THAT A CABLE SYSTEM IN HER TERRITORY HAD BEEN OFFERED A SPECIAL TWOYEAR ROCKBOTTOM PRICE BY CARTOON CHANNEL SHE TYPED THIS INTELLIGENCE INTO A GROUPWARE NETWORK THAT TRACKS MOST DAYTODAY ACTIVITY OF THE SALES FORCE OTHERS NOTICED THAT ANOTHER SALESMAN IN FLORIDA HAD ALSO HEARD SOMETHING ABOUT A NEW MORE AGGRESSIVE DEAL FROM THE COMPETITION SUDDENLY IT CLICKED WE'D FIGURED OUT THEIR GAME SAYS KRIS BAGWELL THE YOUNG MTV SALESMAN WHO HELPED DESIGN THE NEW NETWORK TOP MTV EXECUTIVES WERE TOLD OF THE TACTIC AND WERE ABLE TO COUNTERATTACK BY CHANGING THEIR OWN PRICING AND TERMS SAVING SEVERAL PENDING DEALS ACCORDING TO MR BAGWELL HE SAYS GROUPWARE GIVES MANAGEMENT A BETTER TOOL TO FOLLOW WHAT IS GOING ON IN THE FIELD LET'S SAY WE NEED TO KNOW ABOUT EVERY SALES CALL LAST MONTH ON A COX SYSTEM WHERE NICKELODEON WAS DISCUSSED HE SAYS OR WE NEED TO KNOW WHAT PEOPLE WERE HEARING ABOUT COMEDY CENTRAL'S LOCAL AD SALES IN THE SOUTHEAST LAST QUARTER WITH A COUPLE OF MOUSE CLICKS YOU CAN DRILL IN AND FIND WHAT YOU NEED AT COOPERS & LYBRAND'S ATLANTA OFFICE WILLIAM JENNINGS DIRECTOR OF FRAUDINVESTIGATION SERVICES USED GROUPWARE TO WIN A CONTRACT THAT HE SAYS HE WOULDN'T HAVE KNOWN ABOUT OTHERWISE USING A SYSTEM THAT ELECTRONICALLY CLIPS AND CATEGORIZES NEWS WIRES HE CAME ACROSS A REPORT OF A FOODSERVICE COMPANY IN HAWAII THAT HAD AN INVENTORYTHEFT PROBLEM APPARENTLY COVERED UP BY FRAUD HE QUICKLY TURNED TO AN INHOUSE NOTES DATABASE AND DISCOVERED THAT PEOPLE IN COOPERS & LYBRAND'S LOS ANGELES OFFICE KNEW PEOPLE AT THE VICTIMIZED COMPANY AFTER ONLINE CONSULTATIONS HE DECIDED TO OFFER COOPERS & LYBRAND'S SERVICES TO FERRET OUT THE FRAUD CLICKING INTO ANOTHER GROUPWARE DATABASE WHICH CROSSINDEXED THE BACKGROUND AND SKILLS OF 900 AUDITORS HE SEARCHED FOR SOMEONE WITH PRIOR LAWENFORCEMENT EXPERIENCE A CPA AND FAMILIARITY WITH FOODSERVICE INVENTORIES WE FOUND HIM IN DALLAS AND PUT HIM ON A PLANE THE NEXT DAY COOPERS GOT THE CONTRACT AND THE CLIENT GOT THE RIGHT MAN FOR THE JOB THAT IN SOME ORGANIZATIONS NETWORKS AND GROUPWARE BREACH THE LINES OF COMMAND AT WRIGHTPATTERSON AIR FORCE BASE IN OHIO WHICH USES NETWORK SOFTWARE MADE BY QUALITY DECISION MANAGEMENT OF TAUNTON MASS RANK DOESN'T REALLY MATTER WHEN YOU'RE ONLINE SAYS LT COL DONALD POTTER AN ENLISTED MAN COULD SEND A MESSAGE TO A COLONEL FIVE YEARS AGO HE SAYS THERE WOULDN'T HAVE BEEN AN EASY WAY FOR A SERGEANT TO SHARE AN IDEA WITH A COLONEL SHORT OF MAKING A FORMAL APPOINTMENT TO GO SEE HIM IN HIS OFFICE AT JOHNSON & HIGGINS THE INSURANCE FIRM GROUPWARE LETS MANAGERS IDENTIFY TALENT THAT THEY MIGHT NOT OTHERWISE HAVE KNOWN ABOUT SAYS JOHN DEITCHMAN A SENIOR VICE PRESIDENT WHEN MARY JO DIRKES A YOUNG EMPLOYEE IN CHICAGO POSTED A PARTICULARLY WELLCRAFTED MEMO ON THE NETWORK ABOUT THE FIRM'S EFFORTS IN WORKERS' COMPENSATION SHE GOT KUDOS FROM TOP MANAGEMENT IN NEW YORK AND BROADENED RESPONSIBILITIES IN THE PAST MR DEITCHMAN SAYS I WOULDN'T HAVE THOUGHT OF GOING TO HER FOR HELP BECAUSE SHE'S RELATIVELY NEW AND HADN'T DEVELOPED THE TRADITIONAL NETWORK OF PERSONAL CONTACTS IN THE FIRM THE NETWORK ALSO ALTERED THE CHAIN OF COMMAND IN MS DIRKES'S OFFICE SHE NOW GETS REQUESTS FOR HELP FROM AROUND THE FIRM VIA THE NETWORK WHEN A CLIENT IN OHIO NEEDED SOMEONE WITH EXPERIENCE IN CUTTING WORKPLACE INJURIES IN PLASTICS FACTORIES MS DIRKES CLICKED INTO A GROUPWARE DATABASE TO FIND AN EXPERT THAT COULD HELP BEFORE PEOPLE WOULD HAVE CALLED OR SENT A MEMO TO MY BOSS THEN HE'D ASSIGN IT TO ME SHE SAYS NOW I DO IT ON MY OWN HOW DOES HER BOSS FEEL ABOUT THIS I'M ESSENTIALLY OUT OF THE LOOP AND THAT'S THE WAY I WANT IT SAYS HER SUPERVISOR DAVID NORTH PROBLEMS NOW GET RESOLVED AT THE LOWEST PRACTICAL LEVEL FREEING ME TO WORK ON MOREPRESSING POLICY AND STRATEGY ISSUES BUT SOME EMPLOYEES ARE LEERY OF THE IDEA THAT EVERYONE KNOWS WHAT EVERYONE ELSE IS DOING IT'S A DOUBLEEDGED SWORD SAYS MR BAGWELL THE MTV SALESMAN IT HELPS YOU DO YOUR JOB AND EVERYONE CAN SEE IF YOU'RE WORKING HARD AND MAKING SALES BUT IF YOU AREN'T THAT BECOMES OBVIOUS TOO YOUR MANAGER CAN SEE RIGHT AWAY WHETHER YOU'RE MAKING THREE CALLS A DAY OR EIGHT DONALD SHEA A COOPERS & LYBRAND PARTNER SAYS THAT WHEN THE LOTUS NOTES SYSTEM WAS FIRST INSTALLED THIS SUMMER THERE WAS SOME CONCERN ABOUT BIG BROTHER YES IT'S EASIER FOR ME TO KEEP TRACK OF HOW EVERYONE IS DOING BUT THE WHOLE POINT IS TO BECOME MORE OPEN HE SAYS THE SYSTEM ALSO LETS HIM TRACK PEOPLE WHO HELP MAKE A SALE EVEN IF THEY DON'T GET THE COMMISSION I CAN RECORD ASSISTS JUST LIKE A HOCKEY COACH BEFORE NOTES IT WAS DIFFICULT TO CAPTURE THAT LEVEL OF DETAIL AND A LOT OF GOOD WORK WENT UNRECOGNIZED LYNDA M APPLEGATE A HARVARD BUSINESS SCHOOL PROFESSOR WHO HAS STUDIED THE ORGANIZATION EFFECT OF GROUPWARE SAYS THAT WITH THE NEW TECHNOLOGY INSTEAD OF MANAGING DATA COMPUTERS ARE BEING USED IN EFFECT TO MANAGE NETWORKS OF RELATIONSHIPS BETWEEN PEOPLE WITH GROUPWARE SHE SAYS COMPANIES MUST DECIDE WHO CAN SHARE WITH WHOM OR WHO HAS THE AUTHORITY TO CHANGE ADD TO OR APPROVE A DOCUMENT WRITTEN BY A COWORKER AND SOMEONE HAS TO DECIDE WHO HAS ACCESS TO THE NETWORK AND WHAT INFORMATION IS BETTER KEPT PRIVATE BUT AT SOME ORGANIZATIONS KNOWLEDGE IS POWER AND SHARING DOESN'T COME EASILY THIS BECAME CLEAR AT PRICE WATERHOUSE WHICH USES NOTES TO CONNECT 18000 PROFESSIONALS IN AN MIT STUDY OF AN UNNAMED COMPANY WHICH OTHERS CONFIRM WAS THE BIG ACCOUNTING FIRM PROF WANDA ORLIKOWSKY FOUND EVIDENCE THAT SOME JUNIOR EMPLOYEES WOULDN'T SHARE INFORMATION ON THE NETWORK BECAUSE OF THE FIRM'S INTENSELY COMPETITIVE CULTURE AS ONE EXPLAINED TO PROF ORLIKOWSKY THE CORPORATE PSYCHOLOGY MAKES THE USE OF NOTES DIFFICULT PARTICULARLY IN THE CONSULTANT CAREER PATH WHICH CREATES A BACKSTABBING AGGRESSIVE ENVIRONMENT ANOTHER SAID I'M TRYING TO DEVELOP AN AREA OF EXPERTISE THAT MAKES ME STAND OUT IF I SHARED THAT WITH YOU YOU'D GET THE CREDIT AND NOT ME POWER IN THIS FIRM IS CLIENT BASE AND TECHNICAL ABILITY NOW IF YOU PUT THIS INFORMATION IN A NOTES DATABASE YOU LOSE POWER PRICE WATERHOUSE SAYS IT IS HAPPY WITH NOTES SOME EMPLOYEES BALK AT THE ADDED STRUCTURE THAT NETWORKS CAN ENFORCE WHEN GROUPWARE IS USED TO MANAGE PROJECTS FOR EXAMPLE IT CAN BE SET UP TO SPECIFY WHO IN A WORK GROUP MUST GET WHAT DONE AND WHEN THEN IT CAN RECORD WHETHER A TASK WAS HANDLED SATISFACTORILY SOMETIMES THE PROCESS GOT IN THE WAY OR WAS INFLEXIBLE IF AN EMPLOYEE DECIDED TO SKIP A STEP OR TRY SOMETHING UNPLANNED SO WE ADDED WAYS TO OVERRIDE THE SYSTEM WHEN CIRCUMSTANCES REQUIRED IT SAYS CHARLES RILEY A SENIOR VICE PRESIDENT AT YOUNG & RUBICAM INC THE NEW YORK ADVERTISING FIRM IN A PILOT PROJECT IN THE FIRM'S SAN FRANCISCO OFFICE IN WHICH NOTES WAS USED TO COORDINATE ADVERTISING FOR CHEVRON CORP FROM THE INITIAL MARKETING CONCEPT INTO PRODUCTION SOME PEOPLE FELT THERE WAS TOO MUCH RELIANCE ON THE COMPUTER AND NOT ENOUGH FACETOFACE COMMUNICATIONS HE SAYS OTHERS WERE STILL WRITING PAPER MEMOS TO EACH OTHER THOUGH THE SAME INFORMATION WAS ON THE NETWORK OR HOLDING MEETINGS OVER THINGS THAT HAD ALREADY BEEN DECIDED ONLINE WHEN GROUPWARE ISN'T DESIGNED FOR THE WAY PEOPLE REALLY WORK IT CAN CAUSE A BACKLASH THE COORDINATOR A FIRSTGENERATION GROUPWARE PRODUCT FROM ACTION TECHNOLOGIES INC ELICITED THIS REACTION MICHAEL SHRAGE OF MIT'S CENTER FOR COORDINATION SCIENCE CALLS IT A SOCIAL SPREADSHEET BECAUSE OF ITS INFLEXIBILITY AND THE WAY THAT IT RIGIDLY CATEGORIZED INTEROFFICE COMMUNICATIONS IN ORAL CONVERSATION THERE ARE ALL KINDS OF QUALIFIERS OR CUES THAT ARE IMPLICIT AND WELL UNDERSTOOD SAYS PATRICIA SEYBOLD OF THE SEYBOLD OFFICE COMPUTING GROUP IN BOSTON BUT IN GROUPWARE YOU DON'T SEE THESE CUES AND MUCH OF WHAT IS IMPLICIT IN THE EVERYDAY GIVEANDTAKE OF THE WORKPLACE IN OTHER WORDS LET'S DO LUNCH' WHEN YOU DON'T REALLY MEAN IT HAS TO BE MADE EXPLICIT THOMAS WHITE ACTION'S CHIEF EXECUTIVE SAYS OF THE COORDINATOR WE LEARNED OUR LESSON IN A BIG WAY THE PROGRAM HAS SINCE BEEN SOLD TO ANOTHER COMPANY AND ACTION HAS BEEN SUCCESSFUL WITH OTHER GROUPWARE PRODUCTS ESTHER DYSON AN INDUSTRY CONSULTANT SAYS MANAGERS MUST THINK CAREFULLY ABOUT HOW THEIR COMPANY INTERACTS BEFORE EMBRACING GROUPWARE LEST THEY SIMPLY AUTOMATE RELATIONSHIPS THAT DIDN'T WORK TO BEGIN WITH EVERYONE SAYS GROUPWARE CREATES A FLATTER MORE DEMOCRATIC ORGANIZATION BUT THAT REALLY ONLY HAPPENS IF THE ORGANIZATION IS READY FOR IT 9312090036 931209 INTERNATIONAL BRIEF DEUTSCHE BANK AG GERLING AFFILIATE TO PURCHASE BELGIUM'S NAMURASSURANCES DEUTSCHE BANK AG'S GERLING INSURANCE AFFILIATE AGREED TO ACQUIRE A BELGIAN CREDITINSURANCE COMPANY IN A MOVE THAT WOULD MAKE GERLING ONE OF EUROPE'S LEADING SUPPLIERS OF EXPORTRISK INSURANCE THE GERMAN INSURER GERLINGKONZERN VERSICHERUNGSBETEILIGUNGS AG SAID IT AGREED TO ACQUIRE A 54 STAKE IN NAMURASSURANCES DE CREDIT SA A CLOSELY HELD CREDITINSURANCE CONCERN BASED IN NAMUR BELGIUM ONCE THAT TRANSACTION IS COMPLETED GERLING SAID IT WOULD LAUNCH A PUBLIC OFFER FOR ALL OF NAMURASSURANCES' SHARES OUTSTANDING TERMS OF THE AGREEMENT WEREN'T DISCLOSED BUT OFFICIALS CLOSE TO THE TRANSACTION SAID THE CASH DEAL VALUES ALL OF NAMURASSURANCES AT 2 BILLION TO 3 BILLION BELGIAN FRANCS 563 MILLION TO 845 MILLION NAMURASSURANCES DOES HALF OF ITS BUSINESS IN FRANCE AND HAS OPERATIONS IN THE NETHERLANDS LUXEMBOURG AND BRITAIN GERLING IS GERMANY'S SECONDLARGEST CREDITINSURANCE COMPANY AND HAS A SUBSTANTIAL PRESENCE IN SWITZERLAND GERLING IS 30OWNED BY DEUTSCHE BANK WITH THE REST IN THE HANDS OF THE GERLING FAMILY 9312090035 931209 YELTSIN NO NEW DEMOCRAT BY ANDREW NAGORSKI SINCE AMERICANS LOVE ELECTORAL HORSE RACES WHERE THEY CAN CHEER FOR THE FORCES OF GOOD AGAINST THE FORCES OF EVIL THEIR NATURAL INCLINATION AFTER THIS SUNDAY'S ELECTIONS IN RUSSIA WILL BE TO ASK DID THE GOOD GUYS WIN BUT THAT IS THE WRONG QUESTION THE RIGHT ONE IS WHAT DOES THIS MEAN FOR DEMOCRACY IN RUSSIA THE DIFFERENCE BETWEEN THOSE TWO QUESTIONS IS ILLUSTRATED BY A COMPARISON BETWEEN THE RESULTS OF THE POLISH ELECTIONS IN SEPTEMBER AND THE PROBABLE OUTCOME OF THE RUSSIAN CONTEST IN POLAND THE LEADING REFORMERS LOST TO THE FORMER COMMUNISTS BUT DEMOCRACY STILL WON IN RUSSIA THE PROREFORM PARTIES ARE LIKELY TO DEFEAT THE COMMUNISTS BUT DEMOCRACY MAY STILL LOSE IF POLAND CAN NOW LEGITIMATELY CLAIM TO HAVE DEMONSTRATED ITS COMMITMENT TO DEMOCRATIC PRINCIPLES WITH ALL THE KEY PLAYERS ON THE POLITICAL SCENE FROM PRESIDENT LECH WALESA TO THE FORMER COMMUNISTS ACCEPTING A COMMON SET OF WRITTEN AND UNWRITTEN BASIC RULES OF BEHAVIOR IN VICTORY OR DEFEAT THIS IS FAR FROM THE CASE IN RUSSIA THERE UNPREDICTABILITY REMAINS THE NORM AND NO CONSENSUS EXISTS ABOUT WHAT CONSTITUTES FAIR PLAY ONE BIG REASON IS THE ERRATIC PERFORMANCE OF PRESIDENT BORIS YELTSIN HE DESERVES FULL CREDIT FOR HIS ROLE IN BRINGING DOWN THE SOVIET UNION AND THE TATTERED REMAINS OF ITS TOTALITARIAN SYSTEM BUT HE IS A TRANSITIONAL FIGURE WITH LITTLE UNDERSTANDING OF HOW TO FOSTER DEMOCRATIC BEHAVIOR AND BUILD DEMOCRATIC INSTITUTIONS FOR A COUNTRY TO NAVIGATE THE PASSAGE FROM TOTALITARIANISM TO DEMOCRACY ITS LEADERS MUST SEEK TO STEADILY REDUCE THE ARBITRARINESS OF POLITICS AND SPECIFICALLY OF THEIR OWN DECISIONS NEW WRITTEN AND UNWRITTEN RULES CANNOT BE IMPOSED OVERNIGHT THEY MUST STEADILY EVOLVE CITIZENS MUST FEEL INCREASINGLY REASSURED THAT SUCH RULES WILL BE RESPECTED BOTH BY THE LEADERSHIP AND THE OPPOSITION SOME ELEMENTS OF PREDICTABILITY OF DEMOCRATIC ORDER RATHER THAN SIMPLY THE ABSENCE OF THE TOTALITARIAN STRAITJACKET SHOULD BE MAKING THEMSELVES FELT IN THEIR LIVES THAT IS HARDLY THE CASE IN MR YELTSIN'S RUSSIA THE RUSSIAN PRESIDENT'S INSTINCT IS TO RULE BY DECREE ISSUING THEM BY THE HUNDREDS AND PERIODICALLY ISSUING A DECREE TO RESCIND A PREVIOUS DECREE SOMETIMES ALL IN THE SAME DAY DURING HIS CONFRONTATION WITH THE RUSSIAN PARLIAMENT MR YELTSIN ANNOUNCED THAT HE WOULD SUBMIT TO NEW ELECTIONS IN JUNE BUT AFTER SENDING IN THE TANKS HE REVERSED HIMSELF THE NEW RUSSIAN CONSTITUTION THAT VOTERS ARE TO APPROVE OR DISAPPROVE OF ON SUNDAY IS FOR ALL PRACTICAL PURPOSES A DECREE SUBJECT TO A QUASIREFERENDUM NO PRETENSE WAS MADE OF CONSULTING WITH POLITICAL GROUPS TO GET THEIR INPUT INTO THE DRAWING UP OF SUCH A CRUCIAL DOCUMENT DURING THE CAMPAIGN MR YELTSIN HAS EVEN WARNED HIS OPPONENTS AGAINST CRITICIZING ITS PROVISIONS THE GUARANTEE THAT THE PROVISIONS FOR SWEEPING PRESIDENTIAL POWERS WILL NOT BE ABUSED IS SUPPOSED TO BE PROVIDED BY NONE OTHER THAN MR YELTSIN HIMSELF THEIR MAN YELTSIN AIDES ARGUE HARBORS NO DICTATORIAL AMBITIONS BUT EVEN IF ONE ASSUMES THE BEST INTENTIONS OF MR YELTSIN WHAT ASSURANCE IS THERE THAT SOMEONE ELSE WON'T END UP AS PRESIDENT WHO HAS RADICALLY DIFFERENT IDEAS MR YELTSIN HAS HARDLY PUT TO REST PERSISTENT RUMORS OF ILLHEALTH AND HEAVY DRINKING OFFERING ONLY THE LAMEST OF DENIALS I NEVER DRINK SO MUCH THAT I GET DRUNK HE TOLD A TELEVISION INTERVIEWER LAST MONTH SOME OF MR YELTSIN'S FAILURES INADVERTENTLY BOLSTER HIS CASE THAT HE CANNOT BE WRITTEN OFF AS A NEW TYRANT HE BLOCKED SEVERAL EXTREMIST PARTIES FROM RUNNING IN THE ELECTIONS BUT THERE IS PLENTY OF REAL OPPOSITION FROM THE UNREPENTANT COMMUNISTS CENTRISTS AND EVEN REFORMERS WHO DISAGREE WITH HIM ON EVERYTHING FROM THE CONSTITUTION TO REGIONAL RIGHTS IF THE ELECTIONS CANNOT BE DISMISSED AS A SHAM NEITHER CAN THE NEW PARLIAMENT BE COUNTED OUT AS EASILY AS HE IS HOPING ENDOWED WITH MORE LEGITIMACY THAN THEIR PREDECESSORS THE NEW DEPUTIES ARE UNLIKELY TO ROLL OVER AND PLAY DEAD THEY WILL ALMOST CERTAINLY CHALLENGE HIM MORE OFTEN THAN HE EXPECTS THIS LEAVES RUSSIAN POLITICS IN LIMBO SOMEWHERE BETWEEN TOTALITARIANISM AND NORMAL DEMOCRATIC PRACTICE COMPARED TO THE ELECTIONS OF 1989 AND 1990 CONDUCTED BY THE COMMUNIST PARTY THESE ARE SUPERDEMOCRATIC ELECTIONS SAYS DEPUTY PRIME MINISTER SERGEI SHAKHRAI WHO HAS FORMED HIS OWN POLITICAL PARTY COMPARED TO WHAT ELECTIONS SHOULD BE THESE ARE FAR FROM DEMOCRATIC ELECTIONS FOR RUSSIA EVEN A SYSTEM TINGED WITH A RELATIVELY MILD BRAND OF AUTHORITARIANISM REPRESENTS PROGRESS AND SHOULD BE RECOGNIZED AS SUCH BUT PROGRESS TOWARD POLITICAL STABILIZATION HAS BEEN DISTRESSINGLY SLOW THIS IN TURN LESSENS THE CHANCES FOR ECONOMIC STABILIZATION SINCE THE ARBITRARINESS AND SHAKINESS OF POLITICAL INSTITUTIONS PROVIDES IDEAL CONDITIONS FOR THE FLOURISHING CORRUPTION AND ORGANIZED CRIME THAT MANY RUSSIANS NOW ERRONEOUSLY EQUATE WITH MODERN CAPITALISM THE DANGER IS THAT SUNDAY'S ELECTIONS WILL DO LITTLE TO REASSURE RUSSIANS THAT A NEW SENSE OF ORDER IS EMERGING IN THEIR LIVES BASED ON DEMOCRATIC PRINCIPLES THE LONGER SUCH A STATE OF AFFAIRS EXISTS THE GREATER THE DANGER OF BACKSLIDING ON DEMOCRACY IN THE FUTURE FOR THAT BORIS YELTSIN BEARS A SPECIAL RESPONSIBILITY MR NAGORSKI IS NEWSWEEK'S WARSAW BUREAU CHIEF AND AUTHOR OF THE BIRTH OF FREEDOM SHAPING LIVES AND SOCIETIES IN THE NEW EASTERN EUROPE SIMON & SCHUSTER 1993 9312090033 931209 IN MEXICO'S NAFTALIFE THEY'LL SING SWING SWEET LOEWEN'S CHARIOT' BY TAMSIN CARLISLE STAFF REPORTER OF THE WALL STREET JOURNAL BURNABY BRITISH COLUMBIA A COMPANY HERE THINKS NAFTA WILL HAVE GRAVE CONSEQUENCES LOEWEN GROUP INC PLANS TO EXPAND ITS FASTGROWING FUNERALSERVICE EMPIRE SOUTH OF THE RIO GRANDE THE PLANS ARE BASED IN PART ON MEXICO'S CATHOLICINFLUENCED CULTURE AND A PRECOLUMBIAN HERITAGE THAT MAKES THE DAY OF THE DEAD A HUGE NATIONAL OBSERVANCE SOMETHING LIKE HALLOWEEN THE TIMING IS RIGHT TO EXPAND BEYOND OUR CURRENT BOUNDARIES GIVEN THE OPPORTUNITIES PROVIDED BY THE NORTH AMERICAN FREE TRADE AGREEMENT SAYS LOEWEN'S CHAIRMAN AND CHIEF EXECUTIVE RAY LOEWEN TO START WITH THE COMPANY IS ACQUIRING A TIJUANA FUNERAL HOME AND CREMATORIUM THE MEXICAN FACILITIES ARE JUST ACROSS THE BORDER FROM A LARGE CONCENTRATION OF LOEWEN'S US ASSETS THE 41 FUNERAL HOMES IT OWNS IN CALIFORNIA THE 1 MILLION ACQUISITION IS A TINY INVESTMENT FOR LOEWEN WHICH AT LAST COUNT OWNED 519 FUNERAL HOMES 56 CEMETERIES AND 27 CREMATORIUMS ACROSS THE US AND CANADA THIS YEAR LOEWEN HAS SPENT MORE THAN 150 MILLION EXPANDING ITS US AND CANADIAN OPERATIONS AND IT RECENTLY AGREED TO ACQUIRE THREE PUERTO RICAN FUNERAL HOMES AND A CEMETERY FOR A FURTHER 10 MILLION BUT THE INITIAL PUSH INTO MEXICO MAY BE THE START OF SOMETHING BIG THE AREA IS STEEPED IN TRADITIONAL FUNERAL SERVICES FUNERALS IN MEXICO ARE REGARDED AS A REAL CELEBRATION OF LIFE SAYS LOEWEN'S SENIOR VICE PRESIDENT FINANCE ROBERT GARNETT LOEWEN ISN'T ALONE IN TAKING A LIVELY INTEREST IN THE MARKET POTENTIAL OF DEATH IN MEXICO ITS MAIN COMPETITOR HOUSTONBASED SERVICE CORP INTERNATIONAL SAYS IT ALSO HAS PLANS TO EXPAND SOUTH OF THE BORDER ALTHOUGH IT DECLINES TO ELABORATE IN OTTAWA MEXICAN EMBASSY CULTURAL ATTACHE FERNANDO DELMAR SAYS MEXICAN CATHOLICS ATTACH ROUGHLY THE SAME IMPORTANCE TO FUNERALS AS DO THEIR US COUNTERPARTS BUT HE ADDS THAT HIS GOVERNMENT CONSIDERS DEATH RITES TO BE OF SUFFICIENT SOCIAL IMPORTANCE THAT THE STATE PROVIDES FUNERALS FOR DECEASED MEXICAN CITIZENS WHOSE FAMILIES CAN'T AFFORD PRIVATE CEREMONIES HOWEVER THERE'S A SOCIAL STIGMA ATTACHED TO MAKING DO WITH A GOVERNMENT FUNERAL SAYS MR GARNETT HE HOPES LOEWEN WILL BECOME A LEADING PURVEYOR OF MORE PRESTIGIOUS ALTERNATIVES IN MEXICO AS THE COUNTRY'S ECONOMY STRENGTHENS 9312090032 931209 BUSINESS BRIEF ADOLPH COORS CO DISTRIBUTION OF CLEAR BEER TO BE EXPANDED NATIONALLY COORS BREWING CO SAID IT WILL EXPAND DISTRIBUTION OF ZIMA ITS CLEAR MALT BEVERAGE NATIONALLY FEB 7 THE COMPANY A UNIT OF ADOLPH COORS CO INTRODUCED ZIMA IN THREE TEST MARKETS IN SEPTEMBER 1992 AND EXPANDED THE BRAND'S DISTRIBUTION TO 30 OF THE US IN TWO WAVES IN 1993 COORS SAID IT WILL AGGRESSIVELY ADVERTISE THE BRAND USING BILLBOARDS RADIO AND TV AND PRINT ADS IN ALTERNATIVE NEWSPAPERS ZIMA HAS BEEN IDENTIFIED BY ANALYSTS AS ONE OF THE MOST SUCCESSFUL NEW BRANDS INTRODUCED BY BREWERS IN THE PAST TWO YEARS BUT ITS INTRODUCTION HAS BEEN EXPENSIVE MARKETING AND PROMOTIONAL SUPPORT FOR ZIMA WAS CITED BY COORS AS ONE REASON FOR LOWER EARNINGS IN THE THIRD QUARTER 9312090031 931209 BUSINESS BRIEF EASTMAN KODAK CO COMPANY SHELVES RELOCATION OF IMAGING HEADQUARTERS EASTMAN KODAK CO PUT ON INDEFINITE HOLD ITS PLANS TO MOVE THE COMPANY'S REGIONAL US AND CANADA HEADQUARTERS FOR IMAGING TO WASHINGTON DC IN A STATEMENT GEORGE FISHER KODAK'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY FACED BIGGER ISSUES IN GENERATING GROWTH AND IMPROVING PROFITS THAT MUST BE ADDRESSED BEFORE ANY SUCH MOVES TAKE PLACE ANALYSTS HAD CHIDED THE PROPOSED MOVE AS ODD AND PREMATURE WHEN IT WAS ANNOUNCED IN SEPTEMBER WHILE KODAK WAS STILL LOOKING FOR A NEW CEO KODAK A PHOTOGRAPHY HEALTHCARE AND CHEMICAL CONCERN BASED IN ROCHESTER NY HAD SAID THE PROPOSED RELOCATION OF ABOUT 200 SENIOR IMAGING EXECUTIVES WOULD BRING THE COMPANY'S DIVISION CLOSER TO ITS CUSTOMERS AND MARKETS 9312090030 931209 BUSINESS BRIEF GTE CORP UNIT TO PAY 36 MILLION TO SETTLE FEDERAL CLAIMS GTE GOVERNMENT SYSTEMS CORP IN WASHINGTON AGREED TO PAY 36 MILLION TO SETTLE FEDERAL CLAIMS THAT THE COMPANY OVERCHARGED ON GOVERNMENT LEASES GTE A UNIT OF GTE CORP IN STAMFORD CONN IMPROPERLY INCREASED THE OVERHEAD RATE IT BILLED THE FEDERAL GOVERNMENT BY CHARACTERIZING CAPITALEQUIPMENT LEASES AS OPERATING LEASES ACCORDING TO THE JUSTICE DEPARTMENT IN A STATEMENT THE COMPANY DENIED WRONGDOING AND DESCRIBED THE SITUATION AS DIFFERENCES REGARDING THE INTERPRETATION OF FINANCIAL STANDARDS THE SETTLEMENT FOLLOWED A THREEYEAR INVESTIGATION BY THE JUSTICE AND DEFENSE DEPARTMENTS 9312090029 931209 INTERNATIONAL BRIEF HANSON PLC SHARES RISE 23 ON NEWS OF COAL UNION AGREEMENT SHARES OF HANSON PLC ROSE 23 FOLLOWING NEWS THAT A TENTATIVE AGREEMENT WAS REACHED WITH THE UNITED MINE WORKERS IN THE US OVER A LONGRUNNING STRIKE IN LONDON STOCK EXCHANGE TRADING YESTERDAY HANSON SHARES CLOSED AT 2665 PENCE 398 UP SIX PENCE THE COAL STRIKE WHICH BEGAN IN FEBRUARY AND AFFECTED THE ANGLOAMERICAN CONGLOMERATE'S PEABODY COAL CO UNIT COST HANSON 125 MILLION 1867 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 HANSON SAYS THE STRIKE WAS COSTING THE COMPANY ABOUT 25 MILLION A MONTH DURING THE FINAL QUARTER OF THE FISCAL YEAR THE SETTLEMENT STILL NEEDS TO BE RATIFIED BY UNION MEMBERS THE UNION IS EXPECTED TO PRESENT THE DETAILS OF THE AGREEMENT TO ITS MEMBERS NEXT WEEK 9312090028 931209 INTERNATIONAL BRIEF CHEUNG KONG HOLDINGS LTD LARGE FUNDRAISING ACTIONS HAVE SOME PREDICTING DEALS CHEUNG KONG HOLDINGS LTD OF HONG KONG RAISED 500 MILLION IN THE EUROBOND MARKET ITS SECOND SUCH FUNDRAISING EFFORT IN ABOUT THREE MONTHS SOME ANALYSTS SPECULATE THAT THE CASH MAY BE EARMARKED FOR CHINA WHILE SUCH CASHRAISING EXERCISES AREN'T UNUSUAL FOR A COMPANY OF CHEUNG KONG'S SIZE ANALYSTS SAID THE DIVERSIFIED PROPERTY COMPANY DOESN'T APPEAR TO HAVE ANY PRESSING NEED FOR FUNDS ITS CASH FLOW FROM PROPERTY SALES ARE ENOUGH TO FINANCE ANY PROJECTS ANNOUNCED TO DATE THE LATEST SALE OF SEVENYEAR FLOATINGRATE NOTES WAS PRECEDED BY A SEPTEMBER ISSUE THAT SAW THE COMPANY ENTER THE EUROBOND MARKET FOR THE FIRST TIME IN THAT OFFERING CHEUNG KONG RAISED 500 MILLION THROUGH THE SALE OF FIVEYEAR FIXEDRATE NOTES 9312090027 931209 NONFARM PRODUCTIVITY IMPROVED IN THIRD PERIOD WASHINGTON PRODUCTIVITY OF NONFARM BUSINESSES GREW AT A 43 ANNUAL RATE IN THE THIRD QUARTER SOMEWHAT BETTER THAN THE 39 PACE ESTIMATED EARLIER THE BUREAU OF LABOR STATISTICS SAID ACCORDING TO BUREAU ESTIMATES THE THIRDQUARTER IMPROVEMENT FOLLOWS TWO QUARTERS OF DECLINING PRODUCTIVITY A MEASURE OF OUTPUT PER HOUR OF WORK OVER THE PAST YEAR PRODUCTIVITY HAS IMPROVED ONLY 15 IN THE PRECEDING YEAR IT IMPROVED 34 THE LATEST REVISIONS SHOW THAT OUTPUT ROSE AT A 44 ANNUAL RATE IN THE THIRD QUARTER EVEN THOUGH THE NUMBER OF HOURS WORKED GREW AT A 01 RATE UNIT LABOR COSTS AN IMPORTANT INFLATION GAUGE WERE UP AT A 17 RATE IN THE THIRD QUARTER AND HAVE CLIMBED 2 OVER THE PAST YEAR PRODUCTIVITY HAS BEEN GROWING FASTER IN MANUFACTURING THAN OTHER SECTORS OVER THE PAST SEVERAL YEARS BUT THAT WASN'T THE CASE IN THE THIRD QUARTER WHEN MANUFACTURING PRODUCTIVITY GREW AT A 31 PACE PRODUCTIVITY OF NONFINANCIAL CORPORATIONS INCREASED AT A 35 ANNUAL RATE IN THE THIRD QUARTER A BIT LESS THAN THE 39 RATE IN THE SECOND QUARTER IT'S UP 19 OVER THE PAST YEAR 9312090026 931209 BUSINESS BRIEF BOEING CO INTERNATIONAL LEASE FINANCE ORDERS SEVEN NEW JETLINERS BOEING CO SAID INTERNATIONAL LEASE FINANCE CORP HAS ORDERED SEVEN NEW JETLINERS VALUED AT 525 MILLION THE ORDER BY THE AMERICAN INTERNATIONAL GROUP UNIT BASED IN NEW YORK INCLUDES ONE 747400 JUMBO JET THAT IS THE FIRST OF THAT MODEL ORDERED BY ANY CUSTOMER THIS YEAR THE ORDER ALSO INCLUDES FIVE 757200S AND ONE 767300 EXTENDEDRANGE PLANE DELIVERIES WILL BEGIN IN 1995 INTERNATIONAL LEASE BASED IN BEVERLY HILLS CALIF HAS TAKEN DELIVERY OF 160 NEW BOEING JETS INCLUDING 32 IN 1993 DELIVERIES TO THE LEASING COMPANY ARE SLATED TO INCREASE TO 38 NEW AIRLINERS IN 1994MEANING ILFC WILL TAKE DELIVERY OF MORE BOEING AIRCRAFT THAN ANY OTHER CUSTOMER IN 1994 SO FAR THIS YEAR AMID SEVERE WEAKNESS IN NEWJET PURCHASES BY HARDPRESSED AIRLINES SEATTLEBASED BOEING HAS ANNOUNCED ORDERS FOR 233 AIRCRAFT VALUED AT ABOUT 146 BILLION 9312090025 931209 CORPORATE FOCUS NUCOR CORP STEELS ITSELF FOR BATTLE OF THE LOOKALIKES KING OF LOWCOST MINIMILLS IS BESET BY RIVALS MANY OF ITS OWN MAKING BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH NUCOR CORP WHICH BUILT A REPUTATION AS KING OF LOWCOST MINIMILLS IS FINDING THAT THE DAYS OF EASY VICTORIES ARE OVER NUCOR HAS CONSISTENTLY REPORTED PLUMP PROFITS EVEN DURING INDUSTRY SLUMPS BY LURING AWAY CUSTOMERS FROM THE BIG INTEGRATED MILLS AND MOVING AGGRESSIVELY INTO NEW TECHNOLOGIES BUT THE COMPANY'S SUCCESS HAS SPAWNED A WAVE OF IMITATORS DUBBED NUCOR LOOKALIKES BY INDUSTRY ANALYSTS WHICH ARE CROWDING ONTO THE TRAIL BLAZED BY NUCOR MOREOVER WHILE STEEL PRICES ARE EXPECTED TO FALL UNDER THE WEIGHT OF THE NEW STEELMAKING CAPACITY AND A SURGE OF IMPORTS NUCOR MUST PAY MORE FOR HIGHQUALITY SCRAP METAL WHICH IT TRANSFORMS INTO FINISHED STEEL NUCOR'S NEW COMPETITORS ARE DIFFERENT THAN THE BIG INTEGRATED MILLS IT TOOK ON IN THE PAST RATHER THAN BEING SLOWMOVING AND INEFFICIENT THE LOOKALIKES ARE MINIMILLS THAT OPERATE LIKE NUCOR MAKING THEM HARDER TO BEAT AT THE SAME TIME INTEGRATED MILLS ARE SCRAMBLING TO COMPETE TOO WITH SOME EVEN BUILDING THEIR OWN MINIMILLS NUCOR'S SINGLE BIGGEST ADVANTAGE OVER TIME WAS THE LACK OF CHANGE AMONG COMPETITORS SAYS JOHN JACOBSON A SWARTHMORE PA CONSULTANT ADD TO THIS THE SURGING PRICE OF SCRAP TOPGRADE SCRAP HAS SHOT UP MORE THAN 50 TO ABOUT 165 A TON DURING THE PAST YEAR AND NUCOR FACES PLENTY OF PROBLEMS AS IT FIGHTS TO KEEP ITS LEAD POSITION IN THE INDUSTRY PETER MARCUS AN ANALYST AT PAINEWEBBER CONTENDS NUCOR'S COST ADVANTAGE IN FLATROLLED PRODUCTS ALREADY HAS BEEN ERODED BY SOARING SCRAP PRICES COMPARED WITH INTEGRATED MILLS THAT DON'T RELY ON SCRAP NUCOR HAS ALREADY LOST ITS COST ADVANTAGE COMPARED TO ITS LOWESTCOST INTEGRATED COMPETITORS IN FLATROLLED PRODUCTS SAYS MR MARCUS BUT HE EMPHASIZES THE COMPANY IS STILL MAKING A LOT OF MONEY FOR THE FIRST NINE MONTHS OF 1993 THE COMPANY EARNED 87 MILLION UP 61 FROM 541 MILLION THE YEAR EARLIER HOWEVER MR MARCUS FRETS THAT PROFIT COULD SUFFER BECAUSE FOREIGN PRODUCERS ARE POISED TO PUMP FAR MORE STEEL INTO THE US MARKET BY NEXT YEAR THAT WOULD PUSH DOWN PRICES HURTING A WIDE RANGE OF US STEEL PRODUCERS MINIMILLS USUALLY PASS HIGHER SCRAP PRICES THROUGH TO CUSTOMERS IN PRODUCT PRICES AND THEY ARE DOING THIS AGAIN NOW NUCOR FOR INSTANCE RECENTLY INCREASED THE PRICE OF ITS HOT AND COLDROLLED PRODUCTS BY 15 A TON OR ABOUT 425 EFFECTIVE DEC 18 THE QUESTION IS WHETHER NUCOR AND OTHERS CAN CONTINUE THIS PRACTICE SCRAP PRICES ALWAYS GO UP DURING ECONOMIC RECOVERIES BECAUSE GENERATION OF ADDITIONAL SCRAP LAGS BEHIND THE SURGE IN DEMAND FOR STEEL FROM INDUSTRIES THAT FASHION NEW PRODUCTS OLD REFRIGERATORS AND CARS BECOME SCRAP ONLY AFTER SOMEONE BUYS NEW ONES TO REPLACE THEM BUT THE EMERGENCE OF NUCOR LOOKALIKES AT THE SAME TIME THAT SOME INTEGRATED MILLS ARE ALSO ADOPTING SCRAPBASED STEELMAKING TECHNOLOGY IS RESHAPING THE SCRAP MARKET WHAT WE MAY SEE IN THE FUTURE IS SCRAP PRICES GOING UP OR STAYING HIGH BUT PRODUCT PRICES FALLING OR REMAINING EVEN SAYS DONALD F BARNETT AUTHOR OF A BOOK ON THE RISE OF US MINIMILLS NUCOR IS RESPONDING BY BUILDING A 330000TON IRON CARBIDE PLANT IN TRINIDAD AND TOBAGO IRON CARBIDE IS ONE OF SEVERAL SUBSTITUTES FOR SCRAP BUT IT CAN BE USED ONLY IN MIXTURE WITH SCRAP TO MAKE STEEL IN NUCOR'S MILLS WE'RE DEFINITELY TRYING TO LESSEN OUR TOTAL RELIANCE ON SCRAP SAYS JOHN CORRENTI NUCOR'S PRESIDENT AND CHIEF OPERATING OFFICER BUT EVEN WITH HIGHER SCRAP PRICES MR CORRENTI INSISTS THAT NUCOR ISN'T HAVING ANY PROBLEM STAYING PROFITABLE NUCOR HAS GOOD REASON TO WORRY ABOUT A SCRAP SHORTAGE THE COMPANY IS PLANNING TO DOUBLE THE SIZE OF ITS STATEOFTHEART STEEL PLANTS IN CRAWFORDSVILLE IND AND HICKMAN ARK TO FOUR MILLION TONS OF COMBINED ANNUAL OUTPUT MEANWHILE OTHER COMPANIES ARE COMING ON LINE WITH SIMILAR PLANTS INCLUDING IPSCO INC A LEADING CANADIAN STEELMAKER WHICH IS BUILDING A 360 MILLION PLANT AND COSTEEL INC AND DOFASCO INC WHICH HAVE JOINED FORCES TO BUILD A 300 MILLION PLANT IN KENTUCKY JUST 100 MILES FROM CRAWFORDSVILLE SAMUEL SIEGEL NUCOR'S VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER SAYS THE ADDITIONAL CAPACITY AT NUCOR'S PLANTS WILL BRING ECONOMIES OF SCALE AND HELP KEEP THE COMPANY FIRMLY COMPETITIVE IN EVERY BUSINESS WE'RE IN WE HAVE SIGNIFICANT COMPETITION SAYS MR SIEGEL WE CAN'T DO MUCH ABOUT PRICE BECAUSE WE DON'T HAVE PROPRIETARY PRODUCTS THAT'S WHY WE CONCENTRATE ON CONTROLLING OUR COSTS MR CORRENTI SAYS NUCOR'S OWN CAPACITY EXPANSION AND THAT OF THE LOOKALIKES WILL COME MAINLY AT THE EXPENSE OF THE WEAKER INTEGRATED MILLS WE'VE NEVER BUILT A MILL BECAUSE THERE WAS AN OPEN MARKET FOR IT HE SAYS WE'VE ALWAYS TAKEN OUR SHARE OUT OF SOMEONE ELSE'S BEHIND USUALLY THE FOREIGNERS EVEN SO MR CORRENTI CONCEDES NUCOR IS HUNKERING DOWN FOR A TOUGHER FIGHT HE SAYS NUCOR'S GROWTH MEASURED IN PRODUCTION AND PROFIT MIGHT COME A LITTLE SLOWER IN THE FUTURE THAN IT HAS DURING THE PAST THREE YEARS FEW COMPANIES HAVE HAD SUCH A LONG PERIOD OF UNINTERRUPTED GROWTH WHEN F KENNETH IVERSON NUCOR'S 68YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER BECAME PRESIDENT IN 1965 NUCOR WAS A SMALL MAKER OF STEEL JOISTS WITH SALES OF 223 MILLION BY 1992 THE COMPANY HAD SALES OF 162 BILLION AND WILL RANK AS THE NATION'S FOURTHLARGEST STEEL PRODUCER BY THE END OF NEXT YEAR MR IVERSON IS CLOSELY IDENTIFIED WITH NUCOR'S PAST VICTORIES AND SOME ANALYSTS WONDER WHETHER THE COMPANY CAN KEEP ITS MOMENTUM AFTER HIS EVENTUAL RETIREMENT MR IVERSON RECENTLY UNDERWENT ELECTIVE SURGERY TO REPLACE A HEART VALVE AND NOW WORKS TWOHOUR DAYS HE IS EXPECTED TO PUT IN FULL DAYS BY EARLY NEXT YEAR MR CORRENTI MR IVERSON'S HEIR APPARENT IS CONSIDERED A CAPABLE IF LESS COLORFUL MANAGER MEANWHILE NUCOR OFFICIALS WANT TO PRESERVE THEIR HYPERLEAN MANAGEMENT STRUCTURE WHICH FEATURES ONLY 22 PEOPLE AT CORPORATE HEADQUARTERS BUT THIS TOO HAS ITS DOWNSIDE NUCOR'S LEAN MANAGEMENT MEANS SOME TALENTED EMPLOYEES ARE FORCED TO LEAVE BECAUSE THERE AREN'T ENOUGH TOP POSTS FOR THEM TO BE PROMOTED INTO THREE UPANDCOMING NUCOR MANAGERS LED BY KEITH BUSSE FORMER GENERAL MANAGER OF THE COMPANY'S CRAWFORDSVILLE PLANT RECENTLY LEFT TO LAUNCH THEIR OWN MINIMILL THE THREE MAKE NO SECRET THAT THEIR PRIMARY AIM IS TO COMPETE WITH NUCOR 9312090024 931209 INTERNATIONAL BRIEF UNILEVER NV ANGLODUTCH GROUP TO SELL ITS 30 HOLDING IN GAMMA UNILEVER NV SAID IT WILL SELL ITS NEARLY 30 STAKE IN GAMMA HOLDING NV THE ANGLODUTCH CONSUMERPRODUCTS GROUP BASED IN ROTTERDAM SAID IT EVENTUALLY WILL PLACE THE GAMMA SHARES WITH INSTITUTIONAL INVESTORS BUT DIDN'T IDENTIFY POSSIBLE BUYERS GAMMA PRODUCES HOUSEHOLD DECORATIONS AND FABRICS AS WELL AS SOME LIGHT INDUSTRIAL PRODUCTS THE COMPANY SAID THE MARKET VALUE OF ITS GAMMA SHARES IS ABOUT 200 MILLION GUILDERS 1049 MILLION UNILEVER CURRENTLY OWNS ABOUT 21 MILLION GAMMA SHARES A SPOKESMAN SAID UNILEVER FIRST ACQUIRED GAMMA STOCK IN 1964 THE DISPOSAL OF THE GAMMA STAKE IS IN LINE WITH UNILEVER'S POLICY OF CONCENTRATING FINANCIAL RESOURCES IN ITS CORE ACTIVITIES THE COMPANY SAID UNILEVER IS ONE OF THE WORLD'S LARGEST MAKERS OF HOUSEHOLD AND PERSONALCARE PRODUCTS FOODS AND SPECIALTY CHEMICALS 9312090023 931209 BUSINESS BRIEF GTE CORP AIRFONE SUBSIDIARY FINISHES TESTING OF INFLIGHT CALLS GTE AIRFONE A UNIT OF GTE CORP SAID IT COMPLETED SUCCESSFUL TESTING OF GROUNDTOAIR TELEPHONE CALLS ON ITS INFLIGHT TELEPHONE SYSTEM OAK BROOK ILLBASED GTE AIRFONE SAID IT EXPECTS TO GET GOVERNMENT CERTIFICATION FOR THE SERVICE IN MIDDECEMBER THE SYSTEM WILL BE IN PLACE ON DELTA AIR LINES UNITED AIRLINES AND USAIR SHUTTLE AIRCRAFT IN THE FIRST QUARTER OF 1994 GTE SAID CUSTOMERS WHO WANT INFLIGHT PHONE CALLS WILL RECEIVE ACCOUNT NUMBERS AND PERSONAL IDENTIFICATION NUMBERS FROM GTE WHICH THEY CAN THEN PASS ON TO CALLERS A SPOKESWOMAN SAID WHEN AIRFONE CUSTOMERS BOARD THEY WILL REGISTER TO RECEIVE CALLS BY SLIDING THEIR ACCOUNT CARDS THROUGH A SLOT IN THE PHONE WHICH TELLS THE SYSTEM WHERE CUSTOMERS ARE LOCATED THE ONBOARD PHONES WON'T RING RATHER PASSENGERS WILL BE NOTIFIED OF INCOMING CALLS BY A MESSAGE ON A DISPLAY ON THE PHONE THE SPOKESWOMAN SAID 9312090022 931209 BUSINESS BRIEF TRINOVA CORP COMPANY TO TAKE A CHARGE TO SETTLE BRAZIL TAX DISPUTE TRINOVA CORP SAID IT WILL TAKE A CHARGE TO EARNINGS OF 47 MILLION OR 16 CENTS A SHARE IN THE FOURTHQUARTER TO SETTLE A BRAZILIAN TAX DISPUTE SEPARATELY TRINOVA SAID IT HAS AGREED TO SELL THE STAFFA MOTOR OPERATIONS OF ITS VICKERS INC SUBSIDIARY TO KAWASAKI HEAVY INDUSTRIES LTD OF TOKYO FOR AN AMOUNT IT DIDN'T DISCLOSE THE MAUMEE OHIO COMPANY SAID IT DECIDED TO SELL THE STAFFA UNIT WHICH BUILDS HYDRAULIC MOTORS FOR INDUSTRIAL MACHINERY BECAUSE IT OFFERED NO STRATEGIC FIT FOR THE COMPANY TRINOVA MANUFACTURES AND DISTRIBUTES PARTS AND SYSTEMS FOR THE AUTOMOTIVE AEROSPACE AND DEFENSE INDUSTRIES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TRINOVA SHARES SLIPPED 25 CENTS TO CLOSE AT 3250 9312090021 931209 BUSINESS BRIEF MINNESOTA MINING & MANUFACTURING ALLIANCE WITH DOW CORNING TO SELL FIREPROTECTION LINE DOW CORNING CORP AND MINNESOTA MINING & MANUFACTURING CO AGREED TO COMBINE THEIR FIREPROTECTION PRODUCTS INTO AN ALLIANCE THAT WILL SELL BOTH COMPANIES' LINES THROUGH 3M'S DISTRIBUTOR NETWORK THE TWO COMPANIES PREVIOUSLY HAVE BEEN SEPARATE PARTICIPANTS IN THE FIELD ALTHOUGH THEIR PRODUCT LINES GENERALLY ARE AIMED AT DIFFERENT APPLICATIONS BEGINNING FEB 1 DOW CORNING'S FIRESTOPPING PRODUCTS WILL BE SOLD THROUGH 3M'S DISTRIBUTOR NETWORK UNDER THE 3M NAMEPLATE FIRESTOPPING MATERIALS TYPICALLY ARE USED TO PREVENT OR RETARD A FIRE'S PASSAGE FROM ONE ROOM TO ANOTHER DOW CORNING A JOINT VENTURE BETWEEN DOW CHEMICAL CO OF MIDLAND MICH AND CORNING INC OF CORNING NY SAID THE LINK WITH ST PAUL MINNBASED 3M WILL ALLOW IT TO FOCUS ON OUR STRENGTHS AS A SILICONE SUPPLIER 9312090020 931209 BUSINESS BRIEFS KELSEYHAYES GROUP A UNIT OF VARITY CORP HAS ENTERED A CONTRACT WITH FORD MOTOR CO FOR THE JOINT DEVELOPMENT AND DESIGN OF BRAKE SYSTEMS FOR 1997 UTILITY VEHICLES AND PICKUP TRUCKS TERMS WEREN'T DISCLOSED ONE VALLEY BANCORP OF WVA INC SAID SHAREHOLDERS APPROVED ITS PENDING PURCHASE OF MOUNTAINEER BANKSHARES OF WVA INC THE TRANSACTION IS VALUED AT ABOUT 121 MILLION PPG INDUSTRIES INC SAID MEMBERS OF THE ALUMINUM BRICK AND GLASS WORKERS UNION AT ITS CREIGHTON PA PLANT RATIFIED A NEW THREEYEAR LABOR PACT THE CONTRACT COVERS 260 TO 270 WORKERS AT THE AUTOMOBILE WINDSHIELD PLANT IMO INDUSTRIES INC COMPLETED THE SALE OF ITS BARKSDALE CONTROLS BUSINESS TO MARK CONTROLS CORP FOR 286 MILLION UNITED AIRLINES A UNIT OF UAL CORP SIGNED AN AGREEMENT WITH THAI AIRWAYS INTERNATIONAL LTD TO COOPERATE IN PROMOTIONS AND MARKETING PROGRAMS AND TO COORDINATE FLIGHT SCHEDULES 9312090019 931209 TELECOMMUNICATIONS COMPETITION IS URGED BY CALIFORNIA AGENCY SAN FRANCISCO CALIFORNIA'S PUBLIC UTILITIES COMMISSION HAS PROPOSED OPENING UP THE STATE TO UNFETTERED TELECOMMUNICATIONS COMPETITION THE AGENCY RELEASED AN 86PAGE TREATISE ON STATE TELECOMMUNICATIONS STRATEGY THAT PROPOSES STREAMLINING CURRENT REGULATIONS AND TAKING OTHER STEPS TO PROMOTE COMPETITION AMONG TELEPHONE AND CABLETELEVISION COMPANIES THE IDEA THE AGENCY SAID IS TO OPEN MARKETS TO COMPETITION AND THEREBY STIMULATE THE PRIVATE DEVELOPMENT OF NEW TYPES OF TELECOMMUNICATIONS AND VIDEO SERVICES BRINGING INNOVATIVE NEW PRODUCTS INTO OUR BUSINESSES HOMES AND COMMUNITIES THE AGENCY'S PROPOSALS GO BEYOND ANYTHING ENVISIONED TO DATE BY PROMOTERS OF THE CLINTON ADMINISTRATION'S PLANNED NATIONAL DATA SUPERHIGHWAY THE COMMISSION IS PROPOSING TO OVERHAUL THE TRADITIONAL SYSTEM FOR REGULATING LOCAL TELEPHONE SERVICE THE AGENCY SAID THE PLAN IS SAID TO ALLOW ANY COMPANY THAT CAN MEET CERTAIN QUALITY AND SERVICE STANDARDS TO COMPETE FREELY TO PROVIDE LOCAL TELECOMMUNICATIONS SERVICES ANYWHERE IN THE STATE CURRENTLY IN CALIFORNIA AND THROUGHOUT THE COUNTRY COMPETITION FOR TELEPHONE AND VIDEO SERVICE IS CONSTRAINED BY VARIOUS REGULATIONS AFFECTING PHONE AND CABLE COMPANIES IT ISN'T CLEAR HOW OR WHETHER CALIFORNIA'S PROPOSAL MIGHT CONFLICT WITH FEDERAL LAW OR HOW THE AGENCY INTENDS TO IMPLEMENT THE PLAN PUC OFFICIALS COULDN'T BE REACHED TO COMMENT 9312090018 931209 FEDERAL PROBE SOUGHT OF KHAN'S TESTIMONY IN ICN TAKEOVER CASE NEW YORK A FEDERAL JUDGE ASKED THE US ATTORNEY'S OFFICE TO INVESTIGATE STOCKBROKER RAFI KHAN'S TESTIMONY IN RECENT HEARINGS THAT STEMMED FROM MR KHAN'S BID TO GAIN CONTROL OF ICN PHARMACEUTICALS INC IN A PREVIOUS HEARING US DISTRICT JUDGE JOHN SPRIZZO HAD SAID HE WOULD CONSIDER REFERRING MR KHAN'S TESTIMONY TO FEDERAL PROSECUTORS TO INVESTIGATE WHETHER HE HAD COMMITTED PERJURY YESTERDAY THE JUDGE SAID HE WAS NOT GOING TO ASK THE ATTORNEY'S OFFICE TO LIMIT THE SCOPE OF THE INVESTIGATION AN ICN ATTORNEY SAID LAST WEEK JUDGE SPRIZZO GRANTED ICN'S REQUEST TO BLOCK MR KHAN'S ATTEMPT TO TAKE CONTROL OF THE COMPANY AFTER FINDING THAT MR KHAN DEFRAUDED THE BRITISH GOVERNMENT IN A 1986 SECURITIES SCHEME MR KHAN'S ATTORNEY SAID HE PLANS TO APPEAL THE DECISION MR KHAN PLANS ON GOING FORWARD THE ATTORNEY SAID WHILE HE DISAGREES WITH JUDGE SPRIZZO'S FINDINGS HE WILL INCLUDE THE FINDINGS IN HIS SOLICITING MATERIALS BUT WILL SAY THAT HE DISAGREES WITH THE FINDINGS ICN'S ANNUAL MEETING WHICH WAS TO BE THIS MONTH HAS BEEN POSTPONED UNTIL FEB 1 AN ICN SPOKESWOMAN SAID 9312090017 931209 TECHNOLOGY CHIEF INDICATOR DROPS FOR THE CHIP INDUSTRY SAN JOSE CALIF THE SEMICONDUCTOR INDUSTRY'S CHIEF INDICATOR DROPPED SLIGHTLY IN NOVEMBER MAINLY BECAUSE OF A SEASONAL SALES SLOWDOWN THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID THE BOOKTOBILL RATIO FOR NOVEMBER WAS 099 COMPARED WITH 100 IN OCTOBER AND 113 A YEAR AGO WHEN CHIP ORDERS WERE AT NEARRECORD LEVELS THE NOVEMBER RATIO MEANS THAT FOR EVERY 100 OF CHIPS SHIPPED THE INDUSTRY RECEIVED 99 OF ORDERS CHIP ORDERS FOR NOVEMBER BASED ON A THREEMONTH MOVING AVERAGE ROSE SLIGHTLY TO 22 BILLION FROM 219 BILLION IN OCTOBER THE LATEST NOVEMBER ORDERS WERE 158 ABOVE YEAREARLIER ORDERS TOTALING ABOUT 19 BILLION CHIP SHIPMENTS INCHED UP TO 221 BILLION FROM 22 BILLION IN OCTOBER NOVEMBER SHIPMENTS WERE 317 ABOVE YEAREARLIER SHIPMENTS OF 168 BILLION 9312090016 931209 MDC HOLDINGS INC SETS PLAN TO ACQUIRE REMAINDER OF AFFILIATE DENVER MDC HOLDINGS INC SAID IT AGREED TO ACQUIRE ALL COMMON AND PREFERRED SHARES OF RICHMOND HOMES INC A 45OWNED CONSOLIDATED AFFILIATE THAT IT DOESN'T ALREADY OWN THE HOMEBUILDING AND MORTGAGE CONCERN SAID IT AGREED TO PAY 161 MILLION TO BASE ASSETS TRUST TO ACQUIRE 1990 SHARES OR 20 OF RICHMOND HOMES COMMON STOCK AS WELL AS 1400 SHARES OF RICHMOND HOMES CLASS A PREFERRED STOCK AND A GENERALPARTNERSHIP INTEREST IN THE ROCK CREEK INVESTMENT PARTNERSHIP A BOULDER COLO BONDHOLDING PARTNERSHIP BASE ASSETS A LIQUIDATING TRUST OPERATED BY THE CALIFORNIA DEPARTMENT OF INSURANCE ACQUIRED THE HOLDINGS ALONG WITH 31 MILLION MDC COMMON SHARES WHEN THE STATE INSURANCE DEPARTMENT TOOK OVER EXECUTIVE LIFE INSURANCE CO LOS ANGELES IN APRIL 1991 MDC ALSO SAID IT WILL BUY ALL 3500 SHARES OR A 35 STAKE OF RICHMOND HOMES COMMON STOCK OWNED BY LARRY MIZEL AND DAVID D MANDARICH FOR 2 MILLION TO 35 MILLION IN MDC COMMON SHARES THE COMPANY SAID THE FINAL PRICE WILL BE BASED ON A VALUATION OF RICHMOND HOMES BY AN INDEPENDENT ADVISER TO BE RETAINED BY A COMMITTEE ESTABLISHED BY MDC'S BOARD MR MIZEL IS CHAIRMAN AND CHIEF EXECUTIVE OF MDC AND MR MANDARICH IS THE COMPANY'S EXECUTIVE VICE PRESIDENT FOR REAL ESTATE ADDITIONALLY MDC SAID IT PLANS TO BUY 26 MILLION SHARES OR 13 OF ITS OWN COMMON STOCK FROM BASE ASSETS FOR A PERSHARE PRICE OF AT LEAST 575 BASED ON A FORMULA 9312090015 931209 WHO'S NEWS SMART & FINAL NAMES LAVERTY TO EXTRA POST OF CHIEF EXECUTIVE LOS ANGELES ROGER M LAVERTY III PRESIDENT OF SMART & FINAL INC WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER EFFECTIVE JAN 1 MR LAVERTY 46 YEARS OLD WILL SUCCEED ROBERT J EMMONS WHO CONTINUES AS CHAIRMAN OF BOTH THE WHOLESALE GROCERY CHAIN AND OF A NEWLY FORMED EXECUTIVE OPERATING COMMITTEE THAT INCLUDES MR LAVERTY AND MARTIN A LYNCH EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE CHANGES ARE PART OF A MANAGEMENT TRANSITION THAT BEGAN LAST JANUARY WHEN MR LAVERTY A LONGTIME COMPANY EXECUTIVE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER THE CHIEF OPERATING OFFICER TITLE WILL NOW BE DROPPED A SPOKESWOMAN SAID CONCURRENTLY SMART & FINAL DESIGNATED ITS LOS ANGELES OFFICE WHERE MR LAVERTY WORKS AS THE COMPANY'S HEADQUARTERS THE COMPANY'S MAIN OFFICES HAD BEEN IN SANTA BARBARA CALIF HOME TO SMART & FINAL'S CONTROLLING SHAREHOLDER CASINO USA THE US UNIT OF FRANCE'S GROUPE CASINO SCA DR EMMONS 59 IS CHIEF EXECUTIVE OF CASINO USA 9312090014 931209 WHO'S NEWS WACHOVIA CORP WACHOVIA CORP ATLANTA JERRY D CRAFT 46 YEARS OLD WAS APPOINTED EXECUTIVE VICE PRESIDENT OF THIS BANK HOLDING COMPANY ALSO IN CHARGE OF ITS CONSUMER CREDITSERVICES DIVISION THE POSITION HAS BEEN VACANT FOR MORE THAN A YEAR MR CRAFT WHO HAS BEEN WITH WACHOVIA SINCE 1982 WILL CONTINUE AS MANAGER OF WACHOVIA BANK CARD SERVICES INC AND WILL HAVE RESPONSIBILITY FOR THE COMPANY'S MORTGAGE BANKING AND SALES FINANCE ACTIVITIES 9312090012 931209 INTERNATIONAL FRENCH GDP ROSE IN QUARTER PARIS BUOYANT CONSUMER SPENDING HELPED THE FRENCH ECONOMY TO EMERGE FROM ITS SHALLOW RECESSION IN THE SECOND AND THIRD QUARTERS OF THIS YEAR THE NATIONAL STATISTICS INSTITUTE SAID THIRDQUARTER GROSS DOMESTIC PRODUCT ROSE BY AN INFLATIONADJUSTED 02 FOLLOWING A SIMILAR GAIN IN THE PREVIOUS QUARTER THE 02 GROWTH IN THE SECOND QUARTER REPRESENTED A DOWNWARD REVISION FROM THE 03 INCREASE ESTIMATED BY THE INSTITUTE 9312090011 931209 BUSINESS BRIEF SNYDER OIL CORP CONCERN TO ACQUIRE RIGHTS TO DRILL UNION PACIFIC LANDS SNYDER OIL CORP SAID IT SIGNED A LETTER OF INTENT GRANTING WARRANTS TO PURCHASE TWO MILLION COMMON SHARES AT 25TO27 APIECE TO A UNIT OF UNION PACIFIC CORP IN EXCHANGE FOR DRILLING RIGHTS ON UNDEVELOPED ACREAGE IN COLORADO SNYDER AN OIL AND NATURAL GAS COMPANY SAID THE TRANSACTION WILL ABOUT DOUBLE ITS POTENTIAL PRESENCE IN COLORADO'S WATTENBERG AREA GIVING IT ACCESS TO ABOUT 1800 NEW LOCATIONS UNDER TERMS OF THE AGREEMENT WHICH IS STILL SUBJECT TO APPROVALS AND OTHER CONDITIONS THE UNION PACIFIC UNIT UNION PACIFIC RESOURCES CORP WILL RETAIN A ROYALTY POSITION AND THE RIGHT TO A 50 WORKING INTEREST IN EACH WELL SNYDER SAID IT WILL DRILL A MINIMUM OF 300 WELLS IN THE FIRST THREE YEARS AND ITS 1994 TO 1999 DRILLING BUDGET COULD SUBSTANTIALLY INCREASE AS A RESULT OF ITS DRILLING PLANS FOR THESE PROPERTIES 9312090010 931209 INTERNATIONAL NEWS CORP SCRAPS ITS PLAN OF SUPER' STOCK BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA NEWS CORP SCRAPPED AN UNPOPULAR PLAN TO CREATE A SHARECAPITAL STRUCTURE THAT WOULD HAVE ALLOWED THE MEDIA COMPANY TO FORM STRATEGIC ALLIANCES THROUGH THE ISSUE OF SHARES WHILE PRESERVING THE CONTROL OF ITS BIGGEST SHAREHOLDER RUPERT MURDOCH INVESTORS WELCOMED THE CHANGE IN PLANS SENDING NEWS CORP'S SHARES SOARING 84 TO A1084 US727 A GAIN OF 84 AUSTRALIAN CENTS IN SYDNEY TRADING YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AFTERNOON NEWS CORP AMERICAN DEPOSITARY RECEIPTS WERE QUOTED AT 5625 UP 3 NEVERTHELESS NEWS CORP WATCHERS EXPECT MR MURDOCH TO PURSUE HIS STRATEGY ALBEIT IN ANOTHER GUISE SOME PEOPLE CONTEND THAT MR MURDOCH'S MOTIVES LIE MORE WITH DEVISING A WAY TO OUST CERTAIN OF HIS FAMILY MEMBERS FROM THE COMPANY THAN WITH PURSUING COMMERCIAL ALLIANCES AT THE ANNUAL MEETING IN OCTOBER MR MURDOCH UNVEILED HIS PLAN TO ASK AUSTRALIAN SECURITIES REGULATORS TO BEND THE RULES TO ALLOW THE INTRODUCTION OF NEW SHARES HE DISCLOSED FEW DETAILS THEN OTHER THAN TO SAY THAT SUCH SUPERVOTING STOCK WOULD BE DISTRIBUTED IN THE FORM OF BONUS SHARES OR A FREESCRIP ISSUE TO EXISTING SHAREHOLDERS HOWEVER AS THE SPECIFICS GRADUALLY EMERGED PARTLY THROUGH ARTICLES IN NEWS CORP NEWSPAPERS AUSTRALIAN INVESTMENT INSTITUTIONS WHICH ANALYSTS ESTIMATE HOLD AROUND 40 OF THE STOCK BECAME INCREASINGLY IRATE IT WAS THAT ANGER AS WELL AS LIKELY REGULATORY DELAYS THAT PROMPTED NEWS CORP TO BACK DOWN INVESTORS CONTENDED THAT THE PLAN WOULD DISADVANTAGE MINORITY SHAREHOLDERS BY ENABLING MR MURDOCH TO INCREASE HIS HOLD OVER NEWS CORP WITHOUT PAYING FOR IT FURTHER AUSTRALIA'S ATTORNEY GENERAL MICHAEL LAVARCH FEARED THAT ANY MOVE BY AUSTRALIA TO ALLOW SUCH A SHARECAPITAL STRUCTURE COULD HAVE FARREACHING CONSEQUENCES FOR THE COUNTRY'S FOREIGNINVESTMENT RULES DESPITE THE WITHDRAWAL OF THE NEWS CORP PLAN MR LAVARCH INTENDS TO CONTINUE A STUDY OF THE IMPLICATIONS OF PERMITTING AUSTRALIAN COMPANIES TO ISSUE SHARES WITH VARIOUS VOTING RIGHTS REACHED AT HIS LONDON OFFICE MR MURDOCH DECLINED TO COMMENT BUT A PERSON FAMILIAR WITH NEWS CORP'S INTENTIONS SAID THE COMPANY INTENDS TO PURSUE ALTERNATIVES THAT WOULD ALLOW MR MURDOCH TO ISSUE SHARES TO POTENTIAL PARTNERS WITHOUT DILUTING HIS STAKE WHICH CURRENTLY EQUALS ABOUT 30 ON A FULLY DILUTED BASIS ONE SUCH OPTION THE PERSON SAID MIGHT BE TO REVISIT A PROPOSAL NEWS CORP PUT BEFORE THE STOCK EXCHANGE THREE YEARS AGO TO ISSUE A NEW CLASS OF SHARES WITH LIMITED VOTING RIGHTS ANOTHER OPTION IN NEWS CORP'S ARSENAL WOULD BE TO DELIST THE COMPANY IN AUSTRALIA AND BASE IT ON ANOTHER EXCHANGE SUCH AS LONDON WHERE ITS SHARES ALREADY TRADE AND WHERE THE COMPANY MIGHT BE PERMITTED TO ISSUE SUPERVOTING STOCK NEWS CORP WAVED THIS THREAT THREE YEARS AGO WHEN IT WAS NEGOTIATING THE CREATION OF LIMITEDVOTING SHARES REGARDLESS OF THE ROUTE THE NEED TO IMPLEMENT SOME KIND OF NEW SHARECAPITAL STRUCTURE APPEARS TO BE GROWING MORE URGENT A PERSON CLOSE TO THE SITUATION SAID NEWS CORP NOW IS IN TALKS WITH POTENTIAL PARTNERS AND NEEDS A WAY TO CEMENT THE BUSINESS TIES VIKTOR SHVETS WHO TRACKS NEWS CORP FOR BROKERAGE FIRM MCINTOSH & CO IN SYDNEY SAID THAT THE DESIRE OF RUPERT MURDOCH TO STRENGTHEN HIS INTEREST IN CRUDEN MURDOCH'S FAMILY COMPANY ALSO PLAYED A PART IN DESIGNING THE SUPERVOTING PLAN UNDER MR MURDOCH'S PROPOSAL HE COULD HAVE SOLD SOME OF HIS ORDINARY NEWS CORP SHARES TO RAISE CASH TO BUY CERTAIN FAMILY MEMBERS OUT OF CRUDEN INVESTMENTS PTY LTD MEANWHILE HOLDING OR INCREASING CRUDEN'S STAKE IN NEWS CORP MR SHVETS SAID 9312090009 931209 REVIEW & OUTLOOK EDITORIAL THE US GOT IT RIGHT AT THE SUGGESTION OF UN SECRETARYGENERAL BOUTROS BOUTROSGHALI THE GOVERNMENT OF EL SALVADOR HAS EMPOWERED A SPECIAL PANEL TO INVESTIGATE WHETHER RIGHTWING DEATH SQUADS HAVE BEEN REVIVED TO WIPE OUT MARXIST GUERRILLAS WHO HAVE COME IN FROM THE COLD ONE SPIN ON THESE EVENTS NOW POPULAR IS THAT THE RIGHT IS ATTEMPTING TO THWART A LIKELY ELECTORAL VICTORY IN NEXT MARCH'S ELECTIONS BY THE PROGRESSIVES WHO DISARMED IN GOOD FAITH IN ADVANCE OF THE VOTE PERHAPS PRESIDENT ALFREDO CRISTIANI'S TIMELY APPOINTMENT OF THIS NEW PANEL WILL HELP REVEAL THE FAR MORE COMPLEX STORY OF EL SALVADOR'S RETURN TO DEMOCRACY THE GENERAL THESIS OF THE AMERICAN LEFT IN THE '80S WAS THAT THE US WAS SUPPORTING THE WRONG SIDE IN THE SALVADORAN CONFLICT IN THIS VIEW THE FMLN REBELS REPRESENTED THE MAJORITY OF SALVADORANS AND THEY TOOK UP ARMS MERELY TO DEFEND THE WILL OF THE PEOPLE AND TO PREVENT THEIR OWN ANNIHILATION BY GOVERNMENT DEATH SQUADS DEATH SQUADS DID COMMIT THOUSANDS OF MURDERS THROUGH THE 1980S BUT THE NUMBER OF SUCH ATROCITIES COMMITTED BY THE SALVADORAN GOVERNMENT DECLINED DRAMATICALLY TOWARD THE END OF THE DECADE MEANWHILE CIVILIANS CONTINUED TO BE KILLED OR MAIMED BY TERRORIST ATTACKS LAND MINES OR THE GUERRILLAS' POPULAR EXECUTIONS AND WHENEVER THE REBELS CALLED FOR POPULAR UPRISINGS THE POPULOUS STAYED HOME IN HEAVILY MONITORED ELECTIONS THE SALVADORAN PEOPLE DEFEATED THE REBELS' POLITICAL SURROGATES THE GUERRILLAS WERE OFFERED GENEROUS TERMS FOR SURRENDER WHEN THE SALVADORAN GOVERNMENT SAT DOWN WITH THEM IN UNSPONSORED PEACE TALKS LAST YEAR AFTER SOME ARMTWISTING FROM THE US TO FULFILL THEIR SIDE OF THE PEACE AGREEMENT THE GUERRILLAS WERE SUPPOSED TO HAVE TURNED IN ALL OF THEIR WEAPONS LATE LAST YEAR WHEN THEY FAILED TO DO SO THE UN PUBLICLY CHASTISED THEM THE GUERRILLAS TURNED IN MORE WEAPONS AND SAID THAT TOOK CARE OF THEIR SIDE OF THE BARGAIN THAT WAS FALSE IN MAY A HUGE ARMS CACHE EXPLODED IN AN UNDERGROUND GARAGE IN MANAGUA NICARAGUA REVEALING HUNDREDS OF AUTOMATIC WEAPONS SURFACETOAIR MISSILES AND EXPLOSIVES OF THE TYPE USED BY SALVADORAN GUERRILLAS THE GUERRILLAS DENIED ANY CONNECTION AS THE EVIDENCE BECAME INCONTROVERTIBLE A GUERRILLA LEADER ACKNOWLEDGED THAT THE WEAPONS BELONGED TO HIS GROUP DOZENS OF SIMILAR STASHES WERE DISCOVERED IN NICARAGUA AND EL SALVADOR THE GOVERNMENT PULLED BACK ON SOME OF ITS PEACE ACCORD COMMITMENTS AND AN AIR OF DISTRUST DEVELOPED THE ARMS CACHE STORIES HURT THE GUERRILLAS' STANDING IN POLLS IN SEPTEMBER A COALITION OF MODERATE LEFTISTS AND THE MAJORITY OF THE FMLN GUERRILLA COMMAND ANNOUNCED REUBEN ZAMORA'S CANDIDACY FOR PRESIDENT MR ZAMORA WAS A LEFTIST POLITICAL LEADER WHO HAD SUCCESSFULLY DISTANCED HIMSELF FROM THE REBELS' MORE MILITANT WING HOWEVER THE ZAMORA CANDIDACY ALIENATED A LARGE FACTION OF THE OLD REBEL WARRIORS LESSER CONFLICTS HAVE LED TO INTERNECINE KILLINGS AMONG THE GUERRILLAS IN THE PAST IT IS AMID THIS VOLATILE POLITICAL MIX OF BROKEN PROMISES FEUDS AND SCORESETTLING THAT POLITICAL KILLINGS IN EL SALVADOR ARE ON THE RISE AGAIN WHILE US NEWS REPORTS HAVE FOCUSED ON THE KILLING OF SEVERAL LEFTWING POLITICIANS WHAT HAS RARELY BEEN REPORTED IS THAT SEVERAL MEMBERS OF THE RIGHTWING ARENA PARTY HAVE ALSO BEEN KILLED THERE HAVE BEEN AND STILL ARE A LOT OF NASTY PEOPLE DOING NASTY THINGS ON BOTH SIDES OF THE IDEOLOGICAL SPECTRUM IN EL SALVADOR BUT THE OVERWHELMING MAJORITY OF SALVADORAN PEOPLE ARE GOOD HARDWORKING DEMOCRATS THE US SPENT MOST OF THE 1980S TRYING TO MINIMIZE THE POWER OF THE FORMER AND INCREASE THE RIGHTS OF THE LATTER WHILE US POLICY MADE MISTAKES IT WAS GENERALLY SUCCESSFUL IN ITS GOAL OF KEEPING EL SALVADOR OUT OF THE CONTROL OF THE KIND OF PEOPLE WHO RUINED NICARAGUA NOW EL SALVADOR IS ABOUT TO HOLD ANOTHER ELECTION IN WHICH THE PEOPLE HAVE A WIDER FIELD OF OPTIONS AVAILABLE TO THEM THAN EVER BEFORE THAT LOOKS TO US LIKE A SUCCESS DESERVING SUPPORT 9312090008 931209 ABREAST OF THE MARKET INDUSTRIALS SET RECORD AT 373453 BUT BROADER MARKET AVERAGES SAG BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE POWERED TO ANOTHER HIGH AS INVESTORS SNAPPED UP A HOST OF ECONOMICALLY SENSITIVE STOCKS BUT BROADER MARKET AVERAGES SAGGED THE DOW INDUSTRIALS CLIMBED 1565 TO 373453 BREAKING THE RECORD SET JUST A DAY EARLIER STANDARD & POOR'S 500STOCK INDEX EASED 047 TO 46629 AND THE NASDAQ COMPOSITE INDEX DROPPED 146 TO 76789 VOLUME ON THE BIG BOARD BALLOONED TO 3125 MILLION SHARES FROM 277 MILLION SHARES TUESDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1065 TO 1001 ANALYSTS SAID THE DOW INDUSTRIALS WERE HELPED BY MORE SIGNS THAT THE ECONOMY IS GROWING IN ITS BEIGE BOOK REPORT RELEASED YESTERDAY THE FEDERAL RESERVE BOARD SAID THAT ECONOMIC ACTIVITY CONTINUED TO EXPAND AT A MODERATE PACE AND REFLECTS A MORE OPTIMISTIC OUTLOOK THAN DURING THE SUMMER THOUGH THE NEWS LIFTED SOME OF THE CYCLICAL STOCKS THAT MAKE UP THE DOW ANALYSTS CAUTIONED THAT THE GAINS WERE NOT BROADBASED THE DOW IS BEING DRIVEN BY A HANDFUL OF STOCKS SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER ALUMINUM CO OF AMERICA FOR INSTANCE JUMPED 3 1/4 TO 72 1/2 ACCOUNTING FOR ALMOST HALF OF THE RISE IN THE DOW GAINS IN CATERPILLAR JP MORGAN AND EASTMAN KODAK ALSO CONTRIBUTED HEAVILY TO THE DOW'S ADVANCE MR GALLAGHER SAID HE IS CONCERNED ABOUT THE MARKET'S HEALTH ESPECIALLY BECAUSE BROADER MARKET AVERAGES SUCH AS THE S&P ARE STUMBLING EVEN AS THE DOW IS HITTING NEW HIGHS THE OVERALL MARKET IS NOT EXHIBITING SIGNS OF LASTING STRENGTH SAID MR GALLAGHER THERE ARE A LOT OF WARNING FLAGS HERE BUT I DON'T THINK PEOPLE ARE WORRYING ABOUT THEM BECAUSE OF THE SEASONALITY STOCKS ARE TYPICALLY SEEN AS RISING IN DECEMBER AND JANUARY A CONTINUED DROP IN OIL PRICES PROPELLED THE DOW JONES TRANSPORTATION AVERAGE HIGHER THE INDEX OF 20 TRANSPORTATION STOCKS ROSE 876 TO 176746 COMING WITHIN STRIKING RANGE OF AN ALLTIME HIGH AMR THE PARENT OF AMERICAN AIRLINES EDGED UP 3/4 TO 68 1/4 DELTA AIR LINES ADDED 3/4 TO 59 1/2 AND UAL THE PARENT OF UNITED AIRLINES CLIMBED 5/8 TO 150 5/8 MEANWHILE OIL STOCKS SANK CHEVRON SLID 1 TO 86 MOBIL 1 5/8 TO 73 5/8 EXXON 3/8 TO 62 1/4 AND BRITISH PETROLEUM 1 1/8 TO 58 SHARES OF PRECIOUSMETALS PRODUCERS RALLIED AS GOLD PRICES HEADED UP AMERICAN BARRICK GAINED 1 TO 28 1/8 NEWMONT MINING 3 TO 56 AND HOMESTAKE MINING 3/4 TO 21 1/2 XEROX SOARED 5 5/8 TO 86 3/8 THE PHOTOCOPYING CONCERN SAID IT WILL CUT ITS WORK FORCE BY ABOUT 10000 EMPLOYEES AS PART OF A RESTRUCTURING THAT WILL RESULT IN A FOURTHQUARTER CHARGE OF ABOUT 700 MILLION OR 682 A SHARE AFTER TAXES MICROSOFT SKIDDED 2 TO 83 1/2 IN NASDAQ STOCK MARKET TRADING GOLDMAN SACHS'S TECHNOLOGY ANALYST RICK SHERLUND LOWERED HIS EARNINGS ESTIMATES FOR THE COMPANY CITING CONCERNS THAT A MAJOR PRODUCT INTRODUCTION MAY BE DELAYED ITT SURGED 2 3/8 TO 91 1/8 THE COMPANY SAID IT PLANS TO SPIN OFF ITT RAYONIER ITS FORESTPRODUCTS UNIT TO SHAREHOLDERS IN A SPECIAL DIVIDEND DISTRIBUTION JP MORGAN CLIMBED 1 1/2 TO 72 3/4 CITING ITS EXCELLENT FINANCIAL PERFORMANCE THE BANKING CONCERN RAISED ITS QUARTERLY DIVIDEND 133 TO 68 CENTS AND SAID ITS BOARD APPROVED THE REPURCHASE OF UP TO SEVEN MILLION COMMON SHARES EASTMAN KODAK ROSE 1 1/8 TO 62 1/2 THE PHOTOGRAPHIC GIANT PUT AN INDEFINITE HOLD ON PLANS TO MOVE ITS HEADQUARTERS SAYING THAT IT MUST DEAL WITH BIGGER ISSUES FIRST SUCH AS BOOSTING PROFITABILITY IN ITS IMAGING AND HEALTH BUSINESS PACIFIC GAS & ELECTRIC TOPPED THE MOST ACTIVE LIST EASING 1/4 TO 34 1/2 A SPOKESMAN SAID THE ACTIVITY LIKELY WAS RELATED TO A DIVIDEND THE COMPANY WILL PAY NEXT MONTH CONTINENTAL AIRLINES' CLASS B SHARES SLID 1 1/8 TO 20 1/2 IN HEAVY TRADING THE COMPANY SOLD SEVEN MILLION ADDITIONAL CLASS B SHARES PRICED AT 20 EACH NEWS CORP'S AMERICAN DEPOSITARY RECEIPTS JUMPED 3 TO 56 1/4 THE COMPANY WITHDREW ITS PLAN TO ISSUE A NEW CLASS OF SHARES WITH SUPER VOTING RIGHTS BOEING SLIPPED 1 3/8 TO 39 5/8 EUROPE'S AIRBUS INDUSTRIE CONSORTIUM WON AN 801MILLION ORDER FOR SIX LONGHAUL JETS FROM CATHAY PACIFIC AIRWAYS FORMERLY A LOYAL BOEING CUSTOMER THE BLOW WAS SOFTENED BY A BOEING ANNOUNCEMENT THAT INTERNATIONAL LEASE FINANCE HAS ORDERED SEVEN MORE NEW JETLINERS FROM BOEING VALUED AT ABOUT 525 MILLION NOVELL LOST 1 TO 23 1/2 ON NASDAQ WERTHEIM SCHRODER LOWERED ITS INVESTMENT RATING ON THE STOCK TO AVERAGE FROM ABOVE AVERAGE GENERAL MOTORS' CLASS H SHARES WHICH REPRESENTS AN INTEREST IN GM'S HUGHES AIRCRAFT UNIT GAINED 1 3/8 TO 39 5/8 THE WALL STREET JOURNAL YESTERDAY REPORTED THAT THE AIRCRAFT UNIT PLANS TO BUILD A 660MILLION SATELLITE SYSTEM THAT WOULD VAULT HUGHES INTO THE HEATED US LONGDISTANCE AND SPECIALIZED TELEPHONE MARKET AMERICAN DEPOSITARY RECEIPTS OF BRITISH COMPANIES RALLIED ALONG WITH THE UK STOCK MARKET VODAFONE ROSE 1 5/8 TO 85 7/8 BRITISH AIRWAYS 2 1/4 TO 67 AND BRITISH TELECOMMUNICATIONS 7/8 TO 70 7/8 ADRS OF MEXICAN COMPANIES ALSO FOLLOWED THE MEXICAN MARKET HIGHER TELEFONOS DE MEXICO WAS ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD GAINING 1 1/2 TO 61 9312090007 931209 WHO'S NEWS MONTGOMERY WARD PRESIDENT QUITS AFTER 14 MONTHS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO MONTGOMERY WARD & CO SAID ITS NO 2 EXECUTIVE PRESIDENT HAROLD D KAHN RESIGNED AFTER JUST 14 MONTHS WITH THE CLOSELY HELD RETAILER OFFICIALS WOULDN'T SAY WHY MR KAHN ABRUPTLY LEFT THE COMPANY ON TUESDAY BUT A SPOKESWOMAN SAID HIS DEPARTURE WAS MUTUALLY AGREED UPON BETWEEN MR KAHN AND BERNARD F BRENNAN CHAIRMAN CHIEF EXECUTIVE OFFICER AND 51 OWNER THE 48YEAROLD MR KAHN WHO HAD SPENT MORE THAN 15 YEARS WITH RH MACY & CO BEFORE JOINING MONTGOMERY WARD COULDN'T BE REACHED FOR COMMENT HIS DUTIES WILL BE ASSUMED BY SEVERAL OTHER EXECUTIVES THE COMPANY SAID THE MOVE COMES AS SALES OF APPAREL REMAIN LACKLUSTER MR KAHN WAS BROUGHT IN TO BOLSTER THE APPAREL DIVISION AND DURING HIS BRIEF TENURE THE COMPANY ADDED SEVERAL NAME BRANDS INCLUDING BILL BLASS LEE AND REEBOK APPAREL HAS NOT BEEN THE STRONGEST PART OF OUR BUSINESS BUT IT IS AN AREA WHERE WE ARE DEEPLY COMMITTED SAID SPOKESWOMAN SARINA BUTLER MR KAHN JOINS A GROWING ROSTER OF HIGHRANKING EXECUTIVES WHO HAVE LEFT THE COMPANY IN RECENT YEARS THIS YEAR THE VICE CHAIRMAN FOR APPAREL THE TOP JEWELRYBUSINESS EXECUTIVE AND THE CHIEF PUBLICRELATIONS EXECUTIVE HAVE LEFT MORE THAN A DOZEN HIGHLEVEL EXECUTIVES HAVE DEPARTED SINCE THE RETAILER WENT PRIVATE IN A 38 BILLION EMPLOYEELED BUYOUT IN 1988 MR KAHN'S DEPARTURE ACCOMPANIES A SHIFT IN STRATEGY FOR MONTGOMERY WARD WHICH HAD 1992 SALES OF 58 BILLION YESTERDAY THE COMPANY SAID IT PLANS TO OPEN TWO NEW STORES NEXT YEAR THAT SELL ONLY APPLIANCES FURNITURE AND CONSUMER ELECTRONICS THOSE HAVE BEEN THE BESTPERFORMING OF MONTGOMERY WARD'S DIVISIONS ALTHOUGH PROFIT MARGINS ARE GENERALLY HIGHER FOR APPAREL THAN FOR APPLIANCES AND CONSUMER ELECTRONICS MONTGOMERY WARD'S LATEST RETAILING CONCEPT CALLS FOR OPENING STORES WITH ABOUT 45000 SQUARE FEET ABOUT HALF THE SIZE OF A REGULAR STORE IN MARKETS SMALLER THAN THE MAJOR CITIES IN WHICH THE RETAILER NORMALLY OPERATES WE FELT WE COULD BE A DOMINANT PLAYER IN THOSE MARKETS IF WE FOCUSED ON OUR TWO STRONGEST FORMATS SAID MS BUTLER REFERRING TO THE CONSUMER ELECTRONICSAPPLIANCES AND FURNITURE MARKETS SHE ADDED THAT THE COMPANY ISN'T ABANDONING ITS STRATEGY OF OPENING FULLSIZED STORES AND THAT IT PLANS TO OPEN 10 SUCH STORES NEXT YEAR JUST ONE LESS THAN IN 1993 IN A RELATED ANNOUNCEMENT MONTGOMERY WARD SAID IT IS PURSUING ACQUISITIONS AND PARTNERSHIPS TO DEVELOP ELECTRONIC HOMESHOPPING CAPABILITIES 9312090006 931209 MONEYFUND ASSETS ROSE IN LATEST WEEK TAXFREE YIELDS FELL NEW YORK YIELDS ON TAXFREE MONEYMARKET FUNDS WERE LOWER WHILE ASSETS GREW IN THE WEEK ENDED TUESDAY ASSETS OF 337 TAXEXEMPT FUNDS TWO MORE THAN THE PREVIOUS WEEK INCREASED BY 285 BILLION TO 11032 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 64 DAYS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE INCREASE IN ASSETS TO YEAREND TAX PLANNING BY INVESTORS MR FRANK SAID THE INFLOW OF NEW MONEY IS AFFECTING YIELDS DRIVING THEM LOWER AS THE SUPPLY OF NEW TAXEXEMPT SECURITIES REMAINS FLAT BECAUSE OF THE APPROACHING HOLIDAY SEASON IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 273 IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 630 TAXABLE FUNDS FOUR MORE THAN THE PREVIOUS WEEK SWELLED BY 1348 BILLION TO 49160 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 1160 BILLION OF THE INFLOW WHILE INDIVIDUAL INVESTORS PUT IN 188 BILLION THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 269 WHILE THE 30DAY SIMPLE YIELD INCHED UP TO 268 FROM 267 THE 30DAY COMPOUND YIELD CREPT TO 272 FROM 271 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS WAS SHORTENED BY ONE DAY TO 60 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9312090005 931209 INTERNATIONAL AS CHINA REFORMS STATE SECTOR MILLIONS OF WORKERS FACE LAYOFFS OR RELOCATIONS BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING SHI YOUCAI DOESN'T GET MUCH REST THESE DAYS SINCE DECEMBER LAST YEAR WHEN BEIJING LIGHT BUS CO TRANSFERRED HIM TO AN ACCOUNTING JOB AT ITS NEW PARTS SUPPLIER MR SHI SAYS HIS WORKLOAD HAS INCREASED SO MUCH THAT HE NOW DOES IN ONE MONTH WHAT HE DID IN A YEAR IN HIS PREVIOUS JOB WITH THE MINIBUS MAKER'S LABOR UNION THAT WOULDN'T BE A PROBLEM HE SAYS EXCEPT THAT AT THE NEW COMPANY SET UP BY BEIJING LIGHT BUS TO ABSORB SURPLUS WORKERS THE PAY IS TOO LOW AND CONTROL BY THE PARENT COMPANY IS TOO TIGHT MR SHI ISN'T THE ONLY WORKER GRUMBLING AS CHINA'S AILING STATE ENTERPRISES SEEK TO RAISE EFFICIENCY BY REASSIGNING JOBS TENS OF MILLIONS OF WORKERS STAND TO BE AFFECTED IT'S PART OF THE BRAVE NEW WORLD ENVISIONED FOR CHINA'S STATE SECTOR BY THE COUNTRY'S LEADERS LAST MONTH THE COMMUNIST PARTY CENTRAL COMMITTEE CAME UP WITH A REFORM PACKAGE THAT CALLS ON STATE ENTERPRISES MORE THAN A THIRD OF WHICH NOW OPERATE AT A LOSS TO EXPERIMENT WITH CORPORATE SYSTEMS THOUGH FULLSCALE PRIVATIZATION ISN'T IN THE WORKS THE CHANGES WOULD REQUIRE STATE ENTERPRISES TO DEFINE THEIR OWNERSHIP STRUCTURES A NECESSARY STEP BEFORE ANY ASSETS CAN BE SOLD AND TAKE MORE RESPONSIBILITY FOR THEIR OWN MANAGEMENT AND FINANCES SOME STATE COMPANIES BEGAN THE PROCESS IN THE PAST YEAR AND BEIJING HAS ANNOUNCED THAT IT WILL CHOOSE 100 LARGE AND MIDSIZE STATE ENTERPRISES TO CONVERT INTO LIMITED LIABILITY COMPANIES REFORM OF THE STATE SECTOR IS DEEMED CRUCIAL INDEED CHINA'S TOP LEADERSHIP HAS REALIZED THAT OTHER PROBLEMS CAN'T BE SOLVED UNLESS THAT OF STATE ENTERPRISES IS SAYS FAN GANG OF THE CHINESE ACADEMY OF SOCIAL SCIENCES CHINA'S SPECIALIZED BANKS FOR EXAMPLE CAN'T BECOME SELFSUSTAINING COMMERCIAL BANKS UNTIL THEY ARE FREED FROM HANDING OUT LOANS WHICH OFTEN TURN OUT TO BE SUBSIDIES TO STATE ENTERPRISES CHINA'S ECONOMY IS IN SOME WAYS BETTER PREPARED THAN EVER TO DEAL WITH ITS DECREPIT STATE INDUSTRIES THE RAPID GROWTH OF THE PRIVATE SECTOR IN RECENT YEARS MEANS THAT WORKERS LAID OFF BY STREAMLINING STATE COMPANIES HAVE MORE JOB OPPORTUNITIES STILL WHILE SOME STATE COMPANIES ALREADY HAVE SUCCESSFULLY TRANSFORMED THEMSELVES INTO MORE EFFICIENT COMPANIES MANY MORE HAVE YET TO TRY WHEN THEY DO THE CONSEQUENCES COULD BE DIRE FOR THE COUNTRY'S WORKERS MA JIANTANG A RESEARCH FELLOW AT THE STATE COUNCIL'S DEVELOPMENT RESEARCH CENTER ESTIMATES THAT 30 OF THE STATE SECTOR'S 100 MILLION STRONG WORK FORCE ARE EXTRANEOUS AND SHOULD EVENTUALLY BE LAID OFF OR FOUND NEW POSITIONS THE PROBLEM IS WHAT TO DO WITH THESE PEOPLE HE SAYS THEY WILL HAVE TO DEPEND ON THE SOCIAL SECURITY NETWORK BUT IT CAN'T KEEP UP YANSHAN PETROCHEMICAL CO FACES JUST THIS PROBLEM AT ITS SPRAWLING COMPLEX SOUTHEAST OF BEIJING THE COMPANY EMPLOYS ALMOST 50000 WORKERS AND ALTOGETHER OVERSEES 100000 PEOPLE INCLUDING WORKERS' FAMILY MEMBERS AND RETIREES BESIDES ITS OIL REFINERIES YANSHAN PETROCHEMICAL OPERATES HOSPITALS SCHOOLS KARAOKE BARS AND EVEN ITS OWN POLICE STATION AT THE COMPLEX ALL PART OF THE CRADLETOGRAVE PROVISIONS OF THE STATE SECTOR EVEN WITH THOSE BURDENS THE COMPANY MANAGED TO REGISTER PROFIT OF 600 MILLION YUAN 1036 MILLION FOR 1992 AND IT EXPECTS HEALTHY RESULTS THIS YEAR TOO ACCORDING TO XU DEXIN HEAD OF YANSHAN'S PUBLICRELATIONS DEPARTMENT IT HAS BIGGER AMBITIONS TO BECOME A MULTINATIONAL PETROCHEMICAL CONCERN AND PERHAPS SEEK A PUBLIC LISTING IN THE US TO DO SO MANAGEMENT RECKONS IT WILL HAVE TO SLASH THE COMPANY'S WORK FORCE BY ONETHIRD OVER THE NEXT YEAR BUT WE'RE NOT LIKE FOREIGN COMPANIES SAYS MR XU WE CAN'T PUSH WORKERS OUT WITHOUT A JOB WE HAVE TO SET UP COMPANIES FOR THEM SO THEIR EARNINGS WON'T BE CUT AND THE REORGANIZATION WON'T RESULT IN SOCIAL UNREST YANSHAN HAS ALREADY PLACED 4000 SURPLUS WORKERS IN NEW POSITIONS LARGELY BY SETTING UP SUBSIDIARIES THAT ARE EXPECTED TO GENERATE THEIR OWN INCOME THE RESULTS HAVE BEEN MIXED BEIJING YANSHAN SUPPLY INDUSTRY GENERAL CO FORMERLY A LOSSPLAGUED PLASTICS PROCESSOR UNDER YANSHAN PETROCHEMICAL HAS TURNED A PROFIT AND PROVIDED 900 NEW POSITIONS SINCE YANSHAN PETROCHEMICAL PUT NEW MANAGERS IN CHARGE A YEAR AGO SAYS A BEIJING YANSHAN OFFICIAL FOR MANY OTHER COMPANIES SET UP AT THE END OF LAST YEAR IT'S HARD TO SAY WHO'S DOING WELL AND WHO'S DOING BADLY A BEIJING YANSHAN OFFICIAL SAYS YANSHAN PETROCHEMICAL IS GIVING THEM PERSONNEL LOANS AND EQUIPMENT AS SUPPORT CLOSURES WILL BE A BIG PROBLEM ONLY WHEN THESE COMPANIES HAVE TO DEPEND WHOLLY ON THE MARKET SHUNTING PROBLEM OPERATIONS AND EXCESS WORKERS FROM ONE ENTERPRISE TO ANOTHER OFTEN DOES LITTLE TO SOLVE THE UNDERLYING PROBLEMS OF STATE ENTERPRISES THE NO 1 HOSTEL BELONGING TO ONE OF YANSHAN PETROCHEMICAL'S FACTORIES FOR EXAMPLE RECENTLY TOOK ON WORKERS FROM THE FACTORY IN ADDITION TO AN UNPROFITABLE NURSERY AS A RESULT WE'RE SUPPORTING THE NURSERY THE FACTORY CAN'T RESOLVE THE PROBLEM SO THEY GIVE IT TO US COMPLAINS A HOSTEL PERSONNEL OFFICER WE ALSO HAVE TOO MANY PEOPLE SOME SHOW UP BUT DON'T WORK SOME DON'T COME TO WORK AT ALL IT'S WORSE THAN AT THE FACTORY SOME SUBSIDIARIES REFUSE TO TAKE WORKERS WHO ARE UNQUALIFIED THE GENERAL MANAGER OF ONE THRIVING YANSHAN PETROCHEMICAL SUBSIDIARY SAYS FOR THOSE WHO HAVE BRAWN BUT NO BRAINS LET THEM GO TO THE PIG FARMS OR THE CHICKEN FARMS AS FACTORIES SET UP MORE AND MORE SUBSIDIARIES COMPETITION AMONG THEM GETS ROUGHER IN ADDITION TO THE PARTS COMPANY THAT EMPLOYS MR SHI BEIJING LIGHT BUS HAS SET UP 18 SIMILAR SMALL FIRMS OUTSIDE THE WALLED PERIMETER OF THE MAIN FACTORY WHICH EMPLOYS 2500 PEOPLE WHILE MR SHI SAYS HIS COMPANY WILL EKE OUT A SMALL PROFIT THIS YEAR THE MINIBUS PARTS RETAILER ACROSS THE STREET HASN'T BEEN SO LUCKY AFTER OPENING IN JANUARY IT RACKED UP LOSSES TOTALING 100000 YUAN 17270 BEFORE NEW MANAGEMENT FROM BEIJING LIGHT BUS TOOK OVER IN OCTOBER THE NEW MANAGERS HAVE BEGUN TO TURN THINGS AROUND BUT BUSINESS IS PRETTY TOUGH BECAUSE THERE ARE TOO MANY SPAREPARTS COMPANIES SIGHS SALESMAN ZHAO JIANSHAN 9312090004 931209 TECHNOLOGY EPA SAYS FUEL ADDITIVE MAY NOT POSE HEALTH RISK WASHINGTON AN AUTOMOBILE FUEL ADDITIVE WHOSE USE WAS REQUIRED BY THE 1990 CLEAN AIR ACT DOESN'T APPEAR TO POSE SERIOUS HEALTH RISKS TO THE GENERAL PUBLIC ACCORDING TO A NEW REPORT BY THE ENVIRONMENTAL PROTECTION AGENCY THE STUDY WHICH FOLLOWS UP ON AN INVESTIGATION BY THE CENTERS FOR DISEASE CONTROL REPRESENTS THE EPA'S MOST DEFINITIVE RESPONSE TO DATE TO ANECDOTAL REPORTS OF DIZZINESS HEADACHES AND NAUSEA AMONG SOME INDIVIDUALS WHO WERE EXPOSED TO THE FUEL ADDITIVE METHYL TERTIARY BUTYL ETHER OR MTBE MTBE IS A METHANOLDERIVED SUBSTANCE USED TO DILUTE GASOLINE IN ORDER TO LOWER EMISSIONS OF CARBON MONOXIDE THE REPORT LEAVES OPEN THE QUESTION OF WHETHER MTBE POSES MORE SUBTLE HEALTH RISKS TO INDIVIDUALS ESPECIALLY SUSCEPTIBLE TO CHEMICAL EXPOSURE NOR DOES IT RESOLVE WHETHER MTBE IS A HEALTH RISK FOR PEOPLE IN EXTREMELY COLD AREAS THE LATTER CONCERN HAS BEEN RAISED BY OFFICIALS IN ALASKA WHERE THE GREATEST NUMBER OF HEALTH COMPLAINTS ABOUT MTBE WERE RAISED THE EPA STUDY SAYS EVIDENCE ALASKANS SUFFERED HEALTH EFFECTS DUE TO MTBE IS INCONCLUSIVE THE REPORT ALSO SAYS THAT STUDIES IN NEW JERSEY SHOW NO DIFFERENCES IN SYMPTOMS REPORTED BY THOSE MOST EXPOSED TO AUTO EMISSIONS SUCH AS MECHANICS IN AREAS WHERE MTBE WAS USED 9312090003 931209 TECHNOLOGY & SCIENCE TOP HOSPITALS IN BOSTON PLAN FOR A MERGER BY GEORGE ANDERS AND STEVE STECKLOW STAFF REPORTERS OF THE WALL STREET JOURNAL BOSTON TWO OF THE NATION'S MOST PRESTIGIOUS HOSPITALS MASSACHUSETTS GENERAL AND BRIGHAM & WOMEN'S PLAN TO MERGE IN A BID TO SLASH COSTS BY 20 AND CREATE THE NATION'S LARGEST MEDICAL CENTER THE PROPOSED MERGER DRAMATIZES A CONSOLIDATION TREND THAT HAS BEEN SWEEPING THE HEALTHCARE INDUSTRY HOSPITALS NATIONWIDE HAVE BEEN RACING TO MERGE THIS YEAR AS A WAY TO CUT COSTS AND COMPETE MORE EFFECTIVELY FOR BIG CONTRACTS WITH MANAGEDCARE COMPANIES PRESIDENT CLINTON'S HEALTH REFORM PROPOSALS HAVE FURTHER FUELED THE TREND EXECUTIVES FROM THE TWO HOSPITALS SAID THEY EXPECT SOME OF THE BIGGEST COST SAVINGS TO COME FROM COMBINING ADMINISTRATIVE AREAS SUCH AS FINANCE AND COMPUTER SERVICES THEY SAID IT IS TOO EARLY TO TELL HOW MANY OF THE HOSPITALS' 17500 EMPLOYEES MAY LOSE THEIR JOBS OR EVEN WHO WILL BE IN CHARGE TOGETHER THE BUDGETS OF THE TWO HOSPITALS TOTAL ABOUT 12 BILLION BY TEAMING UP TWO HARVARD MEDICAL SCHOOL TEACHING AFFILIATES WILL CREATE AN 1800BED MEDICAL CENTER WITH WORLDRENOWNED DEPARTMENTS IN HEART SURGERY CANCER TREATMENT AND NEUROLOGY EXECUTIVES FROM THE TWO HOSPITALS SAID THEY EXPECT SOME OF THE BIGGEST COST SAVINGS TO COME FROM COMBINING ADMINISTRATIVE AREAS SUCH AS FINANCE AND COMPUTER SERVICES THEY SAID IT IS TOO EARLY TO TELL HOW MANY OF THE HOSPITALS' 20000 EMPLOYEES MAY LOSE THEIR JOBS OR EVEN WHO WILL BE IN CHARGE TOGETHER THE BUDGETS OF THE TWO HOSPITALS TOTAL ABOUT 12 BILLION ELLEN LUTCH TRAGER A BOSTON HEALTHCARE CONSULTANT SAID ALL HOSPITALS TODAY MUST CONSIDER JOINING FORCES WITH COMPETITORS IF HOSPITALS DON'T FORM ALLIANCES AFFILIATIONS OR HEALTHCARE SYSTEMS THE HOSPITALS WHO ARE LEFT ALONE WILL NOT SURVIVE SHE SAID THE DEAN OF HARVARD MEDICAL SCHOOL DANIEL TOSTESON TOOK A MOMENT YESTERDAY TO NUDGE OTHER HOSPITALS TO JOIN FORCES DR TOSTESON SAID HE HOPES THE MERGER ACCORD WILL BE THE FIRST OF MANY CONSTRUCTIVE REARRANGEMENTS INVOLVING OTHER HARVARDAFFILIATED HOSPITALS NANCY KANE A PROFESSOR AT THE HARVARD SCHOOL OF PUBLIC HEALTH PREDICTED THAT THE MASSACHUSETTS GENERALBRIGHAM & WOMEN'S MERGER COULD HELP SLOW A MEDICAL ARMS RACE IN BOSTON BUT SHE CAUTIONED THAT THE TWO HOSPITALS MAY NEED FIVE TO 20 YEARS TO FULLY INTEGRATE PATIENT CARE IN FACT ROBERT BOYD HEAD OF THE MAIN DOCTOR'S GROUP AT MASSACHUSETTS GENERAL AND A SUPPORTER OF THE MERGER SAID NOT ALL PHYSICIANS HAVE EMBRACED THE PROPOSAL HE ADDED THAT THE PROJECTED COST SAVINGS OF 240 MILLION A YEAR WON'T HAPPEN UNLESS DOCTORS AGREE TO SWITCH TO CHEAPER FORMS OF PATIENT CARE OF THE TWO HOSPITALS BRIGHAM & WOMEN'S HAS GREATER EXPERIENCE IN DEALING WITH THE COST PRESSURES OF MANAGED CARE BECAUSE OF ITS CLOSE TIES TO THE HARVARD COMMUNITY HEALTH PLAN A MAJOR HEALTHMAINTENANCE ORGANIZATION WE WANT TO PRESERVE THE BEST OF BOTH HOSPITALS SAID BRIGHAM & WOMEN'S PRESIDENT H RICHARD NESSON BUT WHEN ASKED HOW DEPARTMENTS MIGHT BE CONSOLIDATED HE SAID WE'VE JUST COME TOGETHER WE NEED A LITTLE TIME STILL THE MERGER OF MASSACHUSETTS GENERAL AND BRIGHAM & WOMEN'S MAKES A LOT OF SENSE SAID JEROME GROSSMAN PRESIDENT OF NEW ENGLAND MEDICAL CENTER A 500BED RIVAL BOSTON HOSPITAL HE PREDICTED THAT BOSTON OVER THE NEXT FEW YEARS WILL SEE A CONSOLIDATION OF ACADEMIC MEDICAL CENTERS DOWN TO TWO THREE OR FOUR CURRENTLY THE CITY HAS 12 TEACHING HOSPITALS DR GROSSMAN SAID THAT WHILE HIS HOSPITAL ISN'T SEEKING AN OUTRIGHT MERGER IT'S IN NEGOTIATIONS WITH SOME SMALL SUBURBAN HOSPITALS TO FORM A NETWORK OF CARE 9312090001 931209 JONES'S HOUSE OF TUDOR DIVERSIFIES ITS HELP AMID LOSSES BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT ISN'T A LOT OF FUN BEING PAUL TUDOR JONES II THESE DAYS FOR THE FIRST TIME SINCE HE STARTED TUDOR INVESTMENT CORP A DECADE AGO THE COMMODITIES TRADER IS POSTING LOSSES FUNDS THAT MAKE UP MOST OF HIS 17 BILLION IN ASSETS UNDER MANAGEMENT ARE DOWN BETWEEN 2 AND 3 A GALLING DISAPPOINTMENT AT A TIME WHEN OTHER WELLKNOWN HEDGE FUNDS ARE RACKING UP 30PLUS RETURNS MR JONES'S FUMBLE COINCIDES WITH A RADICAL CHANGE IN TUDOR'S MANAGEMENT FOR THE FIRST TIME HE IS ENTRUSTING ANOTHER MANAGER WITH CLIENT FUNDS IN AUGUST MR JONES WOOED JAMES PALLOTTA AWAY FROM BOSTON'S ESSEX INVESTMENT MANAGEMENT CO WHERE MR PALLOTTA HAD BEEN DIRECTOR OF RESEARCH MR PALLOTTA IS NOT A COMMODITIES TRADER BUT A STOCK PICKER ACCORDING TO PEOPLE FAMILIAR WITH TUDOR'S MANAGEMENT HE IS THE FIRST OF SEVERAL SPECIALISTS MR JONES INTENDS TO HIRE TO BROADEN TUDOR'S INVESTMENT STRATEGY AND DIMINISH THE EMPHASIS ON COMMODITIES FUTURES AND CURRENCIES BY EARLY NEXT YEAR MR JONES IS EXPECTED TO ADD A BOND EXPERT MR PALLOTTA IS ALREADY MANAGING 300 MILLION MOST OF IT CULLED FROM TUDOR'S LARGEST FUND THE 750 MILLION G5 FUND WHICH INVESTS GLOBALLY MR PALLOTTA WILL ADD ANOTHER 100 MILLION IN ASSETS EARLY NEXT YEAR WHICH WILL BE RAISED FROM OUTSIDE INVESTORS ACCORDING TO PEOPLE FAMILIAR WITH THE FUNDS MR PALLOTTA LITTLEKNOWN OUTSIDE THE HEDGEFUND COMMUNITY IS WELLRESPECTED FOR HIS TRACK RECORD AND INVESTING ACUMEN IN THE FIVE YEARS THAT MR PALLOTTA SHARED MANAGEMENT OF ESSEX'S 1 BILLION HEDGE FUND WITH THE FIRM'S FOUNDER JOSEPH MCNAY THE FUND'S ANNUAL RETURNS AVERAGED 235 IN 1991 HIS BEST YEAR THE FUND WAS UP 71 NEGOTIATIONS TO HIRE MR PALLOTTA BEGAN ABOUT A YEAR AGO RIVALS SPECULATE MR PALLOTTA HAS AGREED TO SHARE WITH MR JONES THE 20 CUT OF PROFITS THAT MANAGERS USUALLY DEMAND RECYCLED FOOTWEAR WHILE MR JONES HAS BEEN KNOWN TO SLIP ON A PAIR OF SNEAKERS ONCE THE PROPERTY OF ACTOR BRUCE WILLIS FOR LUCK MR PALLOTTA TAKES A MORE FUNDAMENTAL APPROACH TO INVESTING HE PORES OVER FINANCIAL STATEMENTS AND VISITS THE COMPANIES HE INVESTS IN SO REGULARLY SAY COMPETITORS THAT HE WAS BETTER KNOWN TO MEMBERS OF THOSE MANAGEMENTS THAN TO ESSEX CLIENTS HE HAS A VIRTUALLY PHOTOGRAPHIC MEMORY FOR THE TRADING HISTORIES AND FUNDAMENTALS OF A HUGE NUMBER OF STOCKS SAYS TIMOTHY STRAUSS HEAD OF HANCOCK INSTITUTIONAL EQUITY SERVICES MR PALLOTTA IS ALSO FAR MORE LOWKEY THAN HIS NEW BOSS MR JONES FLIES BY HELICOPTER FROM HIS WESTCHESTER HOME TO HIS WALL STREET OFFICE EACH DAY MEANWHILE MR PALLOTTA A NATIVE OF BOSTON'S NORTH END IS COMMUTING WEEKLY BY CAR TO NEW YORK WHILE TUDOR'S BOSTON OFFICES ARE BEING BUILT YET MR PALLOTTA HAS ALREADY BEEN BITTEN BY THE GLAMOUR OF INVESTING ON A GLOBAL SCALE HE WAS EXCITED TO BE PART OF A SMALL GROUP OF INVESTORS INCLUDING MR JONES AND JULIAN ROBERTSON OF TIGER MANAGEMENT CO WHO HOSTED FORMER BRITISH PRIME MINISTER MARGARET THATCHER FOR LUNCH A MONTH AGO NEITHER MR PALLOTTA NOR MR JONES RETURNED PHONE CALLS BUT PEOPLE FAMILIAR WITH TUDOR'S MANAGEMENT SAY MR PALLOTTA'S ARRIVAL SIGNALS A NEEDED CHANGE IN MR JONES'S INVESTMENT STRATEGY MR JONES IS LAGGING BEHIND SOME COMMODITY TRADERS WHO HAVE ALREADY DIVERSIFIED AWAY FROM BROAD MARKET BETS TO MORE FUNDAMENTAL RESEARCH IT'S A NECESSARY MOVE ON PAUL'S PART TO COMPETE IN THE FUTURE IN AN EVERMORE COMPETITIVE FIELD SAYS A PERSON CLOSE TO TUDOR THOUGH MR JONES'S MAIN FUNDS ARE ONLY OFF ABOUT 2 HIS DRAWDOWN THE CLOSELY WATCHED SLIDE FROM PEAK TO TROUGH IS CLOSER TO 10 ACCORDING TO ONE MONEY MANAGER THE SLIDE BEGAN IN OCTOBER 1992 BY COMPARISON QUANTUM FUND UNDER THE AUSPICES OF GEORGE SOROS IS UP 45 FOR THE YEAR TO DATE MOORE GLOBAL HEADED BY MR JONES'S FRIEND LOUIS BACON IS UP 30 AND TIGER MANAGEMENT'S FUNDS ARE UP ROUGHLY 32 ACCORDING TO ONE MONEY MANAGER TUDOR FUNDS HAVE LOST ONLY ONE INVESTOR SO FAR BUT OTHERS WHO INVEST WITH MR JONES ARE PLEASED BY HIS EFFORTS TO REMAKE THE FIRM EVERYONE'S A HUMAN BEING SAYS HENRY SWEICA WHO MANAGES FUNDS THAT HAVE INVESTED ABOUT 100 MILLION WITH MR JONES PAUL'S GOING THROUGH A RESTRUCTURING WHEN YOU GET VERY LARGE IT REDUCES YOUR FLEXIBILITY DESPITE DISTRIBUTIONS OF PROFITS TO HIS INVESTORS MR JONES'S ASSETS UNDER MANAGEMENT HAVE QUINTUPLED SINCE 1987 WHEN HE HAD ABOUT 300 MILLION UNDER MANAGEMENT MEANWHILE HIS RETURNS HAVE SUNK FROM A STUNNING 201 IN 1987 TO 25 IN EACH OF THE LAST TWO YEARS THIS YEAR'S LOSSES ARE FORCING MR JONES TO CONFRONT FOR THE FIRST TIME THE REALITIES OF RUNNING A LARGE OPERATION TUDOR INVESTMENT CORP NOW HAS MORE THAN 120 EMPLOYEES AND ANNUAL EXPENSES THAT TOP 25 MILLION WHICH EAT UP ABOUT HALF OF THE ANNUAL FEE MR JONES CHARGES ON TOP OF HIS CUT OF ANY PROFITS AND TUDOR'S STAFF CONTINUES TO GROW MR JONES RECENTLY ADDED A SHORTTERM BOND SPECIALIST TO MAKE BETTER USE OF THE MONEY TUDOR PREVIOUSLY LET LANGUISH IN CASHEQUIVALENTS WHILE MR JONES MAY BE VENTURING AFIELD WITH CLIENT FUNDS FOR THE FIRST TIME HE HAS EXPERIMENTED IN THE PAST WITH HIS FIRM'S PROPRIETARY FUNDS IN 1986 FOR EXAMPLE HE SET UP TUDOR SYSTEMS CORP TO BUILD COMPUTER SYSTEMS FOR TRADING THIS EFFORT CULMINATED WITH AN ARTIFICIALINTELLIGENCEBASED COMPUTER DESIGNED TO REPLICATE MR JONES'S THINKING THIS SYSTEM WHICH A FORMER EMPLOYEE SAYS COST MORE THAN 1 MILLION TO BUILD WAS DUBBED MADONNA IN HONOR OF THE SINGER MR JONES ONCE ADMIRED THE COMPUTER WORKED FINE WITH HISTORICAL DATA BUT FELL FLAT WHEN IT CAME TO MANAGING ACTUAL MONEY SAYS ONE TRADER AND IS NO LONGER RUNNING TIGER MANAGEMENT'S FUNDS HAVE RETURNED ABOUT 52 SO FAR THIS YEAR A MONEY & INVESTING ARTICLE YESTERDAY INCORRECTLY REPORTED THE FUNDS WERE UP 32 9312090064 931105 ECONOMY CLINTON EXPANDS ATTACK ON LOAN BIAS AS DATA SHOW A CONTINUING PROBLEM BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS EXPANDING ITS ATTACK AGAINST LENDING DISCRIMINATION BY TARGETING INDEPENDENT MORTGAGE COMPANIES THAT AREN'T SUPERVISED BY FEDERAL BANKING REGULATORS THE ANNOUNCEMENT BY ATTORNEY GENERAL JANET RENO AND HOUSING SECRETARY HENRY CISNEROS CAME AS THE GOVERNMENT ANNOUNCED NEW FIGURES SHOWING CONTINUED RACIAL DISPARITY IN MORTGAGELENDING PATTERNS THE DENIAL RATES FOR BOTH BLACKS AND WHITES FELL ONE PERCENTAGE POINT EACH FROM 1991 BUT THE DISPARITIES BETWEEN BLACK AND WHITE APPROVAL AND DENIAL RATES PERSIST FED MEMBER LAWRENCE LINDSEY TOLD THE SENATE BANKING COMMITTEE DURING A HEARING ON MORTGAGE DISCRIMINATION THE REGULATORS CLINTON ADMINISTRATION OFFICIALS AND SENATORS AT THE HEARING ALL EXPRESSED DISMAY THAT THE LATEST ROUND OF FIGURES COLLECTED FROM 9073 LENDERS UNDER THE HOME MORTGAGE DISCLOSURE ACT DIDN'T SHOW IMPROVEMENT SINCE THE FED STARTED RELEASING REJECTIONRATE DATA TWO YEARS AGO REGULATORS HAVE TOUGHENED ENFORCEMENT OF FAIRLENDING LAWS AND MANY LENDERS HAVE LAUNCHED EFFORTS TO INCREASE THE NUMBER OF MORTGAGES THEY MAKE TO MINORITIES BUT PROGRESS HAS BEEN SLOW WE'RE NOT ENCOURAGED BY THE 1992 DATA ANDREW HOVE CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP TOLD THE PANEL HE SAID IT'S BECOMING CLEAR THAT THE PROCESS WILL BE SLOW AND DIFFICULT CHANGING LENDING PATTERNS INVOLVES SUSTAINED LONGTERM COMMITMENT BY DEPOSITORY INSTITUTIONS REGULATORS COMMUNITIES AND CONSUMERS HE SAID WE RECOGNIZE THAT STILL MORE WORK NEEDS TO BE DONE IN THE PAST SEVERAL MONTHS ALL BANK REGULATORS HAVE STEPPED UP THEIR POLICING OF FAIRLENDING LAWS IN ADDITION THE JUSTICE DEPARTMENT OPERATING ON REFERRALS FROM BANK REGULATORS IS INVESTIGATING ABOUT SIX LENDERS FOR POSSIBLE DISCRIMINATION TWO BANKS UNDER INVESTIGATION ARE BARNETT BANKS INC OF JACKSONVILLE FLA AND SHAWMUT NATIONAL CORP IN HARTFORD CONN YESTERDAY MS RENO AND MR CISNEROS ANNOUNCED THAT THE JUSTICE DEPARTMENT AND HUD HAVE LAUNCHED A JOINT EFFORT TO SEARCH FOR POSSIBLE LENDING DISCRIMINATION BY INDEPENDENT MORTGAGE COMPANIES BANKERS THAT AREN'T ATTACHED TO BANKS MORTGAGE BANKERS BOTH THOSE OWNED BY BANKS AND THOSE THAT AREN'T MAKE MORE THAN HALF OF THE NATION'S MORTGAGES SOME INDEPENDENT MORTGAGE BANKERS ARE AMONG THE LARGEST LENDERS IN THE COUNTRY A HUD OFFICIAL SAID THE AGENCY'S AUTHORITY COVERS LENDERS THAT MAKE LOANS INSURED BY THE FEDERAL HOUSING ADMINISTRATION THE NEWS IN THE LATEST DATA WASN'T ENTIRELY BAD ALTHOUGH THE DISPARITY IN REJECTION RATES BETWEEN WHITE AND BLACK APPLICANTS REMAINS HIGH MORE BORROWERS OF ALL RACES ARE GETTING MORTGAGES PART OF THE INCREASE REFLECTS THE APPEAL OF LOW INTEREST RATES WHICH ARE DRAWING MORE PEOPLE INTO THE HOUSING MARKET BUT REGULATORS SAY SOME OF THE INCREASE MAY BE THE RESULT OF NEW PROGRAMS TO MAKE IT EASIER FOR LOWINCOME BORROWERS TO GET MORTGAGES CONVENTIONAL HOMEPURCHASE LOANS FOR BORROWERS WHOSE INCOME IS BELOW THE MEDIAN FAMILY INCOME IN THEIR AREA ROSE 271 LAST YEAR MORE THAN DOUBLE THE RATE OF INCREASE FOR LOANS TO BORROWERS WHOSE INCOMES ARE EQUAL TO OR GREATER THAN THE MEDIAN IN ADDITION MR LINDSEY REPORTED THAT LOANS TO BLACKS ROSE 259 LAST YEAR FROM 1991 WHILE LOANS TO WHITES ROSE 205 LOANS TO HISPANICS ROSE 76 AND LOANS TO ASIANS ROSE 56 SEPARATELY THE ASSOCIATED PRESS REPORTED THAT FLEET FINANCIAL GROUP INC'S FLEET BANK UNIT IS BEING EXAMINED BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY FOR POSSIBLE CONSUMERLENDING DISCRIMINATION IN THREE STATES A SPOKESWOMAN FOR THE AGENCY AN ARM OF THE TREASURY DEPARTMENT WOULDN'T IDENTIFY OTHER BANKS THAT ARE BEING STUDIED AND SAID THE REVIEW DIDN'T SIGNAL THAT FLEET BANK OR THE OTHERS WERE ACCUSED OF WRONGDOING FLEET DECLINED TO COMMENT SEE RELATED LETTER LETTERS TO THE EDITOR SWEET CHARITY WILL KILL A BANK WSJ DEC 9 1993 9311050014 YY93 MM12 9312090057 931103 PEACE SIGN ISRAEL'S RALLYING CRY JERUSALEM MUST STAY UNITED' LOSES STEAM SOME NOW SAY ARABS DESERVE TO SHARE POWER IN A CITY WITHOUT WALLS WARFARE THE VOTERS PICK A NEW MAYOR BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM FROM THE BALCONY OF HER HILLTOP APARTMENT IN A JEWISH NEIGHBORHOOD HERE ELLEN SHMUELOFF LOOKS OUT AT A SWEEPING EXPANSE OF ARAB NEIGHBORHOODS AND TALKS ABOUT A CHANGE OF HEART FOR YEARS MS SHMUELOFF LIKE OTHER ISRAELIS VOWED THAT JERUSALEM MUST REMAIN UNIFIED UNDER ISRAELI RULE ISRAELIS WILL NEVER GIVE IN TO PALESTINIAN DEMANDS TO ESTABLISH A PALESTINIAN CAPITAL IN THE BIBLICAL CITY'S EASTERN HALF THEY INSISTED JERUSALEM MAYORAL CANDIDATE EHUD OLMERT A MEMBER OF THE RIGHTWING LIKUD PARTY EVEN MADE HIS FIERCE OPPOSITION TO A DIVIDED JERUSALEM A CENTERPIECE OF HIS CAMPAIGN AND SWEPT INTO OFFICE YESTERDAY DEFEATING 83YEAROLD INCUMBENT TEDDY KOLLEK JERUSALEM'S MAYOR FOR THE PAST 28 YEARS YET BEYOND THE RHETORIC AND THE AGITATING OF POLITICIANS THE ISRAELI CONSENSUS ON THE JERUSALEM ISSUE IS BEGINNING TO CRUMBLE IN THE AFTERGLOW OF THE SEPTEMBER PEACE ACCORD BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION MANY ISRAELIS ARE REEXAMINING THEIR DECADESOLD OPPOSITION AND WONDERING WHETHER SHARING POWER WITH THE CITY'S LARGE ARAB MINORITY MIGHT HELP USHER IN LASTING PEACE THERE IS NO LONGER A CLEAR CONSENSUS ABOUT JERUSALEM SAYS MS SHMUELOFF 42 EVERYTHING I THOUGHT WAS A RED LINE NO LONGER IS THERE'S A NEW FEELING OF COMPROMISE SHE ADDS WHEN YOU LOOK AROUND AND SEE A NEW WORLD BEING CREATED AND A CHANCE FOR PEACE THEN YOU START CHANGING EVEN BASICALLY HELD VALUES THAT CONCILIATORY MOOD CROSSES PARTY LINES AND IS EVIDENT EVEN AMONG THOSE WHO VOTED FOR MR OLMERT I'M A LIKUD VOTER IN MY BLOOD I ALWAYS WAS I ALWAYS WILL BE VOLUNTEERS MENACHEM HAHIMIAN A 34YEAROLD JERUSALEM CAB DRIVER BUT MR HAHIMIAN WHO LIVES IN A JEWISH NEIGHBORHOOD IN EAST JERUSALEM SAYS HE WOULDN'T MIND IF ALL THE ARAB NEIGHBORHOODS THERE WERE GIVEN POLITICAL AUTONOMY I DON'T EVEN CARE IF THEY WANT TO PUT A PALESTINIAN FLAG UP ON THE TEMPLE MOUNT HE SAYS REFERRING TO THE HOLY SITE IN EAST JERUSALEM WHERE A MUSLIM MOSQUE SITS ATOP THE REMAINS OF THE FIRST JEWISH TEMPLE LET THEM PUT A THOUSAND FLAGS THERE IF IT BRINGS PEACE THE JERUSALEM ISSUE WASN'T THE ONLY FACTOR DECIDING YESTERDAY'S MAYORAL RACE MR KOLLEK'S ADVANCING AGE AND DECLINING HEALTH MOST CERTAINLY LOOMED LARGER IN VOTERS' MINDS IN ANY CASE BOTH MR KOLLEK AND MR OLMERT AGREED THAT JERUSALEM MUST REMAIN UNIFIED UNDER ISRAELI RULE THEY DIFFERED ONLY IN DEGREE MR KOLLEK IS SEEN AS MORE MODERATE AND OPEN TO NEGOTIATIONS ABOUT SOME SORT OF POWERSHARING COMPROMISE THAN THE MORE CONSERVATIVE MR OLMERT LIKE THE TWO CANDIDATES MOST ISRAELIS STILL STOP SHORT OF SUPPORTING ARAB DEMANDS FOR A PALESTINIAN CAPITAL IN THE CITY'S EASTERN HALF YET MANY PEOPLE INTERVIEWED INCLUDING SEVERAL WHO VOTARE OPEN TO A LESS SWEEPING ARRANGEMENT SUCH AS THE PALESTINIANS RULING THEIR OWN SECTION OF JERUSALEM THE FUTURE THEY ENVISION DOESN'T INCLUDE WALLS OR BARRIERS IN THE ANCIENT CITY JUST A SINGLE OPEN JERUSALEM WITH ISRAELI AND PALESTINIANS SHARING GOVERNMENT POWER HOW AND ALONG WHAT LINES THE CITY WOULD BE DIVIDED IS STILL VERY MUCH UP IN THE AIR SOME ISRAELIS ADVOCATE A BOROUGH SYSTEM FOR EXAMPLE WHILE THE MOST EXTREME WOULD LIKE TO SEE A REDIVISION OF JERUSALEM INTO EASTERN AND WESTERN HALVES JUST AS IT WAS BEFORE THE 1967 ARABISRAELI WAR EXCEPT WITHOUT THE WALLS AND THE WARFARE ISRAELIS' SHIFTING ATTITUDE TOWARD JERUSALEM REPRESENTS A REMARKABLE TURNABOUT IF JERUSALEM IS INDEED DIVIDED IN SOME WAY MANY BELIEVE IT ULTIMATELY WILL LEAD TO AN INDEPENDENT PALESTINIAN STATE THE PALESTINIANS HAVE CHANGED SAYS NIR SHMUELOFF ELLEN SHMUELOFF'S 17YEAROLD SON MAYBE IT WAS THE OCCUPATION OR THE INTIFADA OR JUST THE YEARS BUT THEY'RE A NATION NOW AND THEY AREN'T GOING TO GIVE UP THEIR DREAM JUST LIKE WE DIDN'T THE SEPTEMBER PEACE ACCORD TOOK WHAT COULD PROVE TO BE THE FIRST STEP TOWARD A PALESTINIAN STATE BY CALLING FOR SELFRULE IN GAZA AND THE WEST BANK CITY OF JERICHO IT DIDN'T TOUCH ON THE POLITICAL HOT BUTTON OF JERUSALEM STIPULATING THAT TALKS ON THAT TOPIC WOULD BEGIN THREE YEARS INTO A FIVEYEAR AUTONOMY PERIOD IN THE WEST BANK AND GAZA YET ALREADY SOME OF ISRAEL'S LEADING POLITICIANS ARE SHOWING SIGNS OF FLEXIBILITY ABOUT PALESTINIAN RULE IN JERUSALEM IN A RECENT SPEECH BEFORE THE LABOR PARTY YOSSI BEILIN DEPUTY FOREIGN MINISTER AND ONE OF THE ARCHITECTS OF THE ISRAELPLO ACCORD SUGGESTED ALLOWING THE PALESTINIANS TO RUN PART OF JERUSALEM AND PRIME MINISTER YITZHAK RABIN'S RULING COALITION HAS OPPOSED TWO PARLIAMENTARY BILLS PRESENTED BY THE OPPOSITION THAT WOULD REQUIRE AT LEAST 80 OUT OF THE 120 KNESSET MEMBERS TO APPROVE ANY CONCESSIONS ON PALESTINIAN RULE IN JERUSALEM THE BILLS THE GOVERNMENT COMPLAINED WOULD TIE ITS HANDS IN NEGOTIATING JERUSALEM'S STATUS MR OLMERT FOR HIS PART SAID IN A VICTORY SPEECH LAST NIGHT THAT HE SUPPORTS THE STATUS QUO IN JERUSALEM AND THAT HE WANTS TO BE A MAYOR FOR EVERYONE ARABS INCLUDED SOME OF HIS SUPPORTERS ARE HOPING HE WILL GO FURTHER ISRAELI JOURNALIST YAIR SHELEG 29 A RELIGIOUS JEW WHO LIVES IN EAST JERUSALEM SAYS HE HAS CHANGED HIS MIND ABOUT JERUSALEM AND NOW BELIEVES THAT IN THE INTEREST OF PEACE THE PALESTINIANS HAVE A RIGHT TO SELFGOVERNMENT IT CAN'T BE VIEWED AS AN EITHER/OR SITUATION EITHER WE CONTROL OR THEY DO HE SAYS AS LONG AS JEWS LIVING IN EAST JERUSALEM CAN REMAIN CITIZENS OF ISRAEL THEN THE ISSUE OF PALESTINIAN SOVEREIGNTY IN PALESTINIAN NEIGHBORHOODS DOESN'T BOTHER ME CERTAINLY NOT ALL ISRAELIS ARE IN SUCH A CONCILIATORY MOOD IN MS SHMUELOFF'S LIVING ROOM IN A STONE APARTMENT BUILDING IN PISGAT ZE'EV ONE OF SEVERAL JEWISH NEIGHBORHOODS BUILT IN PARTS OF JERUSALEM CAPTURED BY ISRAEL IN 1967 EIGHT ISRAELIS WHO HAVE GATHERED TO DISCUSS THE JERUSALEM ISSUE QUICKLY FALL INTO LOUD DEBATE WHY ARE WE EVEN TALKING ABOUT THIS YELLS AN INFURIATED ELI LEVY 40 A FORMER PROFESSIONAL SOCCER PLAYER WHO NOW WORKS IN CITY HALL WE SHOULDN'T EVEN BE TALKING ABOUT SHARING POWER IN JERUSALEM BORN IN JERUSALEM 40 YEARS AGO MR LEVY SKETCHES A CHILDHOOD SPENT IN A DIVIDED CITY THE UGLY WALL CUTTING JERUSALEM IN TWO THE BULLETS HE AND HIS FRIENDS DODGED AS JORDANIAN SNIPERS SHOT AT THEM FROM EAST JERUSALEM'S ABANDONED BUILDINGS HE RECALLS HIS TERROR DURING THE 1967 WAR WHEN HE SPENT A WEEK FEARING DEATH IN A BOMB SHELTER AND EMERGED TO DISCOVER INSTEAD THAT THE ISRAELIS HAD WON THE WAR AND THAT JERUSALEM WAS REUNITED BUT HIS JERUSALEM ISN'T NIR SHMUELOFF'S JERUSALEM MR SHMUELOFF MS SHMUELOFF'S 17YEAROLD SON CAME OF AGE DURING THE PALESTINIAN UPRISING KNOWN AS THE INTIFADA NEARLY SIX YEARS OF THE INTIFADA HAS ALREADY EFFECTIVELY REDIVIDED THE CITY HE SAYS HE MAY LIVE IN EAST JERUSALEM BUT HE AND HIS FRIENDS SHOP EAT AND SOCIALIZE IN WHAT ISRAELIS STILL CALL JEWISH JERUSALEM THE WESTERN HALF OF THE CITY THEY DON'T SIT IN ARAB COFFEE SHOPS OR WANDER IN THE ARAB MARKET IN THE OLD CITY AS THEIR PARENTS AND COUNTLESS FOREIGN TOURISTS USED TO DO MR SHMUELOFF HAS NEVER EVEN SET FOOT IN THE ARAB NEIGHBORHOOD THAT SITS RIGHT NEXT TO HIS OWN IF YOU HAD ASKED ME BEFORE I WOULD HAVE SAID THAT A COMPROMISE ON JERUSALEM WAS OUT OF THE QUESTION HE SAYS BUT NOW I THINK WE HAVE NO CHOICE IF THEY DON'T GET PART OF JERUSALEM THERE WILL NEVER BE PEACE HERE ISRAELIS' MOREACCEPTING ATTITUDE IS LARGELY BORN OF PRAGMATISM VAST NEIGHBORHOODS OF EAST JERUSALEM ARE ALREADY ARAB STRONGHOLDS JUST TAKE A LOOK FROM THE TOP OF A HILL IN THE EASTERN PART OF TOWN AT THE SITE OF A LARGE UNFINISHED BUILDING THAT BEFORE THE 1967 WAR WAS INTENDED TO SERVE AS THE SUMMER PALACE OF JORDAN'S KING HUSSEIN FROM THIS VANTAGE POINT A STARTLING SIGHT UNFOLDS STARTING WITH THE KALANDIA PALESTINIAN REFUGEE CAMP FAR OFF IN THE DISTANCE DOWN INTO A HUGE EMPTY VALLEY THAT IS NOW SLATED TO BE THE SITE OF 7500 NEW PALESTINIAN HOUSING UNITS PAST A SERIES OF ARAB VILLAGES THAT BACK RIGHT UP TO THE DAMASCUS GATE OF THE OLD CITY OF JERUSALEM THERE IS A NEARLY UNBROKEN STRETCH OF PALESTINIAN LAND ISRAELIS ESPECIALLY THOSE WHO LIVE OUTSIDE JERUSALEM IN TEL AVIV OR HAIFA DON'T KNOW OR REALLY CARE ABOUT THESE AREAS SAYS AN ISRAELI WHO HAS BEEN INVOLVED IN SOME GOVERNMENT DISCUSSIONS ABOUT THE JERUSALEM ISSUE MOST OF THEM DON'T CONSIDER THIS JERUSALEM AND SO WHEN THE TIME COMES TO GIVE THE PALESTINIANS A CAPITAL IN JERUSALEM THIS IS THE PLACE WHERE ISRAELIS COULD COMPROMISE JERUSALEM WHICH LITERALLY MEANS FOUNDATION OF PEACE IN HEBREW HAS BEEN CAUGHT IN AN OFTEN BLOODY TUGOFWAR BETWEEN JEWS MUSLIMS AND LATER CHRISTIANS FOR VIRTUALLY ALL OF ITS 4000YEAR HISTORY JUDAISM WAS FOUNDED HERE AND THE CITY WAS JUDAISM'S POLITICAL AND SPIRITUAL CENTER IN BIBLICAL TIMES CHRISTIANITY TOO WAS BORN IN JERUSALEM WHERE JESUS PREACHED AND WAS CRUCIFIED AND FOR ISLAM THE CITY IS HOLY AS THE PLACE WHERE THE KORAN SAYS THE PROPHET MOHAMMED LEAPED INTO HEAVEN ASTRIDE HIS HORSE A SITE COMMEMORATED WITH THE DOME OF THE ROCK MOSQUE IN THE CITY'S EASTERN HALF FOR YEARS SOME ISRAELIS HELD ON TO THE HOPE THAT THE ARABS LIVING IN JERUSALEM COULD BE ASSIMILATED AS ISRAELI CITIZENS UNDER ISRAELI RULE JERUSALEM'S ARABS ARE STILL JORDANIAN CITIZENS SHORTLY AFTER THE 1967 WAR JERUSALEM'S MAYOR KOLLEK ASKED MICHAEL ROMANN NOW A GEOGRAPHY PROFESSOR AT TEL AVIV UNIVERSITY TO CONDUCT A STUDY ON THE IMPLICATIONS OF REUNITING THE CITY I WAS SO OPTIMISTIC WE ALL WERE WE THOUGHT IF WE IMPROVED THEIR THE EAST JERUSALEM ARABS' ECONOMIC LIFE IF INFRASTRUCTURE AND PUBLICHEALTH SERVICES GOT BETTER THEY WOULD ACCEPT ISRAELI POLITICAL SOVEREIGNTY HERE SAYS MR ROMANN 58 WHO GREW UP CLOSE TO THE OLD ISRAELIJORDANIAN BORDER I MEAN WE HAD ARABS LIVING IN HAIFA AND JAFFA IN 1948 AND THEY BECAME ISRAELIS WE THOUGHT THE SAME THING WOULD HAPPEN IN JERUSALEM BUT WE DID ALL THAT AND THEY STILL DIDN'T WANT US EVEN ISRAELIS WHO OPPOSE DIVIDING THE CITY ARE NO LONGER CONFIDENT THAT THEY WILL PREVAIL MOSHE POLLAK A JEWISH WEST BANK SETTLER WHO IS CHAIRMAN OF HEBREW UNIVERSITY'S STATISTICS DEPARTMENT NOTES THAT ISRAELI SOCIETY HAS CHANGED SOCIALIST KIBBUTZIM ARE ADOPTING CAPITALIST TRAPPINGS ISRAELI FOLK SINGERS HAVE BEEN REPLACED BY MADONNA THE ISRAELPLO ACCORD MARKED A REAL BREAK WITH OUR PAST HE SAYS AND I AM SCARED THAT ULTITHAT BREAK IS LEADING TO JERUSALEM AN ANNUAL MARCH TO JERUSALEM LAST MONTH COMMEMORATING A BIBLICAL TRADITION IN WHICH JEWS MADE A PILGRIMAGE TO THE TEMPLE IN JERUSALEM ON CERTAIN HOLIDAYS VIVIDLY DEMONSTRATES THE CHANGE THAT HAS TAKEN PLACE AMONG ISRAELIS IN BIBLICAL TIMES THE MARCH ENDED AT THE TEMPLE IN EASTERN JERUSALEM YET MARCHERS NOW DON'T STRAY NEAR THE EASTERN PART OF TOWN STICKING TO THE PRE1967 BOUNDARIES OF WESTERN JERUSALEM DRESSED IN COMPANY TSHIRTS AND FLUORESCENT BASEBALL CAPS THOUSANDS OF ISRAELIS PARADE PAST THE NEW SOCCER STADIUM THE LARGEST MALL IN THE MIDDLE EAST AND A SCULPTURE GARDEN ON THE WAY TO A PARK AT ONE POINT A SMALL GROUP OF MARCHERS BEGINS SINGING JERUSALEM OF GOLD ONE OF THE MOST FAMOUS ISRAELI SONGS TO COME OUT OF THE 1967 WAR A SONG THAT CELEBRATES THE CAPTURE OF EAST JERUSALEM SITES LIKE THE OLD CITY AND THE TEMPLE MOUNT BUT THEIR VOICES FADE AFTER THE FIRST STANZA EMBARRASSED THAT THEY HAVE FORGOTTEN THE WORDS THEY QUICKLY TAKE UP A NEW SONG MARCHING THROUGH THE STREETS BELTING OUT THEIR COMPANY JINGLE ABOUT BETTER MORTGAGES AT LOWER INTEREST RATES THE ISRAELI WRITER YEHUDA AMICHAI HAS BEEN CALLED THE POET OF JERUSALEM THE CITY BOTH DIVIDED AND UNIFIED HAS BEEN ONE OF THE MAJOR THEMES OF HIS POETRY SINCE THE 1960S SITTING IN HIS HOME ON WHAT WAS ONCE THE BORDER BETWEEN ISRAELI AND JORDANIANRULED JERUSALEM HE SAYS THERE IS ROOM IN THE CITY FOR BOTH PALESTINIAN AND ISRAELI VISIONS IT IS PROBABLY TOO SOON TO COME UP WITH A PERMANENT SOLUTION TO THE PROBLEM OF JERUSALEM HE SAYS THE BITTERNESS AND HATRED THAT HAVE MARKED THE RELATIONS BETWEEN JEWS AND ARABS MUST FIRST BE RESOLVED BUT HE THINKS ISRAELI POLITICIANS WHO SPEAK ABOUT ISRAELI SOVEREIGNTY IN JERUSALEM IN TERMS OF FOREVER AND ETERNAL ARE MAKING A MISTAKE EVEN POETS AND LOVERS HE SAYS DON'T USE THE WORD FOREVER' ANYMORE SEE RELATED LETTERS LETTERS TO THE EDITOR GIVE OR TAKE A THOUSAND YEARS WSJ DEC 9 1993 9311030018 YY93 MM12 9312090056 931108 NEWEST MANDATE EVERYONE INTO THE CARPOOL BY DAVID ANDREW PRICE THANKS TO AN ACT OF CONGRESS THE ODDS ARE FAIRLY GOOD THAT YOUR COMPANY WILL SOON BE GETTING INTO THE PASSENGER TRANSPORTATION BUSINESS BUT WAIT YOU SAY WHAT OUR COMPANY WANTS TO FOCUS ON IS MAKING AND SELLING WIDGETS WE DON'T HAVE ANY INTEREST IN PASSENGER TRANSPORTATION AND WE DON'T KNOW ANYTHING ABOUT IT BUT IF YOUR COMPANY HAS MORE THAN 100 EMPLOYEES AT A SITE IN OR NEAR A LARGE CITY YOUR COMPANY WILL PROBABLY BE SUBJECT IN 1994 TO YET ANOTHER DISTRACTING FEDERAL MANDATE THE EMPLOYER TRIP REDUCTION REQUIREMENT OF THE 1990 CLEAN AIR ACT AMENDMENTS THIS RELATIVELY OBSCURE MANDATE WHICH HAS BEEN LYING IN WAIT FOR THE PAST SEVERAL YEARS MAKES EMPLOYERS RESPONSIBLE FOR INCREASING THE NUMBER OF PASSENGERS PER VEHICLE IN TRIPS BETWEEN HOME AND WORK BY NEXT MONDAY AFFECTED STATES WILL HAVE TO SUBMIT PLANS UNDER WHICH THEY WILL CALCULATE THE AVERAGE NUMBER OF PASSENGERS PER VEHICLE IN THEIR AREAS EMPLOYERS WILL THEN BE REQUIRED TO DRAW UP THEIR OWN PLANS THAT CONVINCINGLY DEMONSTRATE THAT THE AVERAGE FOR THEIR EMPLOYEES WILL RISE TO 125 OF THAT FIGURE OVER A FOURYEAR PERIOD AMONG THE APPROACHES SUGGESTED BY THE ENVIRONMENTAL PROTECTION AGENCY ARE PARKING CHARGES FOR EMPLOYEES WHO DRIVE ALONE EMPLOYER SUBSIDIES FOR CARPOOLS AND PUBLIC TRANSIT FOURDAY WORK WEEKS AND EMPLOYERSUPPLIED SHUTTLES FOR LUNCHHOUR ERRANDS THE 1990 LEGISLATION MAKES EMPLOYER TRIP REDUCTION PROGRAMS COMPULSORY IN NINE REGIONS COVERING AMERICA'S BIGGEST CITIES WHERE OZONE POLLUTION IS HIGHEST THE EPA ESTIMATES THAT THE PROGRAMS WILL AFFECT THE EMPLOYERS OF 12 MILLION TO 13 MILLION AMERICAN WORKERS IN ADDITION TO THE REGIONS WHERE EMPLOYER TRIP REDUCTIONS ARE DIRECTLY MANDATED BY THE CLEAN AIR ACT THERE ARE MANY MORE WHERE STATE AND LOCAL OFFICIALS ARE LIKELY TO ADOPT SUCH REQUIREMENTS AS A WAY OF MEETING ANOTHER SET OF FEDERAL MANDATES UNDER A SEPARATE PROVISION OF THE 1990 LAW IF A REGION WAS NOT MEETING FEDERAL OZONE STANDARDS IN 1990 IT IS REQUIRED TO REDUCE EMISSIONS OF OZONECAUSING POLLUTANTS BY 15 BY NOVEMBER 1996 THE REQUIREMENTS IMPOSED BY THE ACT UPON STATES AND LOCALITIES ARE NOT EASY TO MEET AS THE SITUATION NOW STANDS SOME WILL HAVE LITTLE CHOICE BUT TO ADOPT EMPLOYER TRIP REDUCTION PROGRAMS EVEN THOUGH THE PROGRAMS ARE COSTLY AND HAVE ONLY A SLIGHT EFFECT ON POLLUTION A 1992 GENERAL ACCOUNTING OFFICE STUDY CONCLUDED THAT TRANSPORTATION CONTROL MEASURES SUCH AS EMPLOYER TRIP REDUCTION PROGRAMS COULD BE EXPECTED TO REDUCE CARBON MONOXIDE AND OZONEFORMING HYDROCARBONS BY 3 OR LESS THE PROGRAMS WILL HAVE LITTLE EFFECT ON POLLUTION BECAUSE CARS HAVE BECOME CLEANER AND BECAUSE COMMUTING ACCOUNTS FOR A DECLINING SHARE OF VEHICLE TRAVEL FROM ABOUT ONETHIRD IN 1969 TO A QUARTER IN 1990 YET THE COST OF THE PROGRAMS INCLUDING SURVEYS OF COMMUTING PLAN DEVELOPMENT AND PLAN IMPLEMENTATION WILL BE SIGNIFICANT THE EMPLOYER MANDATES IN THE CLEAN AIR ACT ARE A CLASSIC EXAMPLE OF FEDERAL LAWMAKING DRIVEN BY SYMBOLISM RATHER THAN SOBER THINKING THE ENVIRONMENTAL PROBLEM THAT THEY ADDRESS IS REAL CONFUSINGLY WHILE THE OZONE LAYER IN THE STRATOSPHERE IS OUR ALLY EXCESSIVE OZONE AT GROUND LEVEL IS HARMFUL TO PEOPLE'S LUNGS BUT THE INEFFECTIVENESS OF TRANSPORTATION CONTROLS WAS KNOWN AS EARLY AS 1983 WHEN THE FEDERAL HIGHWAY ADMINISTRATION REPORTED ITS FINDINGS ON THE ISSUE SUMMARIZING THE VIEWS OF STATE TRANSPORTATION AND AIR QUALITY OFFICIALS NATIONWIDE WHAT SEEMS TO HAVE OVERRIDDEN FACTS AND LOGIC IS A BLIND ANTICAR BIAS AT THE EPA AND AMONG SOME IN CONGRESS THUS ALTHOUGH THERE ARE WAYS TO CUT OZONE AT LESS COST THE EPA HAS REJECTED THE MOST COSTEFFECTIVE ALTERNATIVES BECAUSE OZONE FORMS MORE EASILY IN HOT WEATHER HIGH OZONE OCCURS IN MOST CITIES ONLY ON A HANDFUL OF SUMMER DAYS TARGETING THOSE DAYS WOULD BE BETTER FOR BOTH THE PUBLIC HEALTH AND THE LOCAL ECONOMY GOVERNMENTS IN THE WASHINGTON DC REGION SOUGHT TO DO EXACTLY THAT WITH A PROPOSAL TO BAN LAWN MOWING WITH GASPOWERED MOWERS AND RECREATIONAL POWER BOATING ON HIGHOZONE DAYS WHILE THOSE LIFESTYLE DISRUPTIONS ARE THEMSELVES UNDESIRABLE WASHINGTONAREA OFFICIALS CONCLUDED REASONABLY THAT OCCASIONAL LIMITS ON MOWER AND BOAT ENGINES WHICH ARE DIRTIER THAN CAR ENGINES WOULD GIVE MORE OZONECUTTING BANG FOR THE BUCK NONETHELESS THE EPA AND SOME ENVIRONMENTAL GROUPS HAVE CONTENDED THAT PERIODIC MEASURES CANNOT BE CREDITED TOWARD CLEAN AIR ACT REQUIREMENTS NOR ARE EMPLOYER TRIP REDUCTIONS THE LAST WORD IN ANTICAR MEASURES UNLESS LOCALITIES ARE ALLOWED TO TARGET HIGHOZONE DAYS THE TIGHTER POLLUTION RESTRICTIONS THAT TAKE EFFECT AFTER 1996 WILL PROBABLY FORCE THEM TO ADOPT EVEN MORE DRACONIAN MEASURES SUCH AS A 2 PER GALLON INCREASE IN GAS TAXES AND A FREEZE ON PUBLIC AND PRIVATE PARKING SPACES MEASURES THAT HAVE ALREADY BEEN PROPOSED FOR SAN FRANCISCO AND BOSTON RESPECTIVELY EMBRACING ENVIRONMENTAL PROTECTION DOES NOT HAVE TO MEAN A DIVORCE FROM ECONOMIC RATIONALITY BUT THE EMPLOYER TRIP REDUCTION MANDATES ARE JUST THE KIND OF POINTLESS BURDEN THAT CONTRIBUTES TO THE ERRONEOUS IMAGE OF ENVIRONMENTALISM AS LUDDISM LOCALITIES SHOULD BE GIVEN THE LEEWAY TO AVOID THOSE MANDATES AND OTHER ANTICAR MEASURES WHILE LETTING THEIR RESIDENTS BREATHE CLEANER AIR MR PRICE IS AN ATTORNEY IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR HE MUST THINK WE'RE A BUNCH OF AIRHEADS WSJ DEC 9 1993 9311080035 YY93 MM12 9312090058 931025 INTERNATIONAL WASHINGTON INSIGHT IMF'S MEDICINE FOR RUSSIAN ECONOMY DRAWS CRITICISM FOR BEING TOO STRONG BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SHOULD RUSSIA AND OTHER BANKRUPT COUNTRIES GET THE SAME TREATMENT FROM THE INTERNATIONAL MONETARY FUND THAT RH MACY & CO IS GETTING FROM A US BANKRUPTCY COURT HARVARD PROFESSOR JEFFREY SACHS AN ADVISER TO THE RUSSIAN GOVERNMENT SAYS THE ANSWER IS YES HE ARGUES THAT BANKRUPT NATIONS DESERVE THE SAME HELP THAT COMPANIES GET WHEN THEY REORGANIZE UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IMMEDIATE PROTECTION FROM CREDITORS AND A QUICK INFUSION OF LIQUIDITY I APPLAUD THE TOUGH STANCE THE IMF TAKES IN PUSHING COUNTRIES TO DO THE RIGHT THINGS SUCH AS MOVING TOWARD MARKET ECONOMIES AND IMPOSING FISCAL AND MONETARY DISCIPLINE MR SACHS SAYS BUT HE SAYS THE IMF PAYS TOO LITTLE ATTENTION TO THE STRAINS THAT ITS ADJUSTMENT PROGRAMS IMPOSE THE SYSTEM SIMPLY DOESN'T PROVIDE SHORTTERM LIQUIDITY HE SAYS THE IMF IS AN EASY TARGET FOR CRITICISM ITS JOB IS TO DELIVER BAD NEWS AND TO PRESCRIBE STRONG MEDICINE AND NEW HABITS THIS MISSION AND THE IMF'S LARGE INGROWN AND OFTEN SECRETIVE BUREAUCRACY MAKES THE FUND HARD TO LOVE TRANSFORMING THE FORMER SOVIET STATES INTO MODERN MARKETORIENTED ECONOMIES IS BY FAR THE MOST DIFFICULT TASK THE AGENCY HAS FACED SINCE IT WAS ESTABLISHED IN 1944 TO HELP REBUILD WARTORN ECONOMIES THE SACHS CRITIQUE ALSO OVERLOOKS SIGNIFICANT PROGRESS IN RUSSIA TOWARD ECONOMIC PRIVATIZATION AND BUILDING MODERN ECONOMIC INSTITUTIONS IMF OFFICIALS ARE PUZZLED BY THE SACHS ATTACK WE AND JEFF THINK THAT THESE COUNTRIES SHOULD DO THE SAME THING AND WE HELP EACH OTHER SAYS JOHN ODLINGSMEE WHO DIRECTS THE FUND'S PROGRAMS IN THE FORMER SOVIET STATES WHAT'S MORE RUSSIA'S ECONOMIC ADJUSTMENT HAS BEEN COMPLICATED BY POLITICAL DIFFERENCES OVER MONETARY POLICY SUBSIDY LEVELS AND THE PACE OF PRIVATIZATION THE US SUPPORTS THE WAY THE IMF HAS TIED AID TO MOSCOW'S PROGRESS TOWARD A FREEMARKET ECONOMY SENIOR OFFICIALS STRESS THAT THE IMF MUST CONTINUE TO LOOK FOR THE PROPER COMBINATION OF DISCIPLINE AND ENCOURAGEMENT SO THAT RUSSIA SEES THE REFORM PROCESS AS A LADDER TO CLIMB RATHER THAN A WALL TO SCALE SOME OFFICIALS THINK THE IMF COULD HAVE DONE MORE TO STRENGTHEN THE HAND OF REFORMERS LAST SPRING AND SUMMER THUS GIVING THEM MORE CLOUT IN RUSSIA'S POLITICAL DEBATES NORMALLY DEBATES OVER IMF POLICIES HAVE LITTLE RELEVANCE TO MOST AMERICANS BUT THE PACE AND SUCCESS OF EFFORTS TO BUILD A FUNCTIONING MARKET ECONOMY IN RUSSIA WILL INFLUENCE US SECURITY POLICIES AND TRADE OPPORTUNITIES FOR YEARS TO COME LAWRENCE SUMMERS TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS CITES A RUSSIAN PROVERB TO MAKE THE POINT YOU DON'T WANT TO BE CAUGHT IN THE WOODS WITH A WOUNDED BEAR MR SACHS WHO HAS EARNED FAME AND FORTUNE BY ADVISING POLAND ESTONIA AND RUSSIA ON HOW TO TRANSFORM THEMSELVES FROM COMMUNIST TO CAPITALIST ECONOMIES IS QUICK TO CRITICIZE THE IMF FOR BEING TOO RIGID AND HARSH STABILIZATION IS EASIER THAN IT LOOKS IF YOU GET THE RIGHT JUMPSTART HE SAYS IN THE IMF WAY ALL THE PAIN IS AT THE BEGINNING LIQUIDITY AND STABILITY COME AT THE END IN REAL LIFE THE HELPING HAND COMES AT THE BEGINNING HE NOTES THAT WHEN COMPANIES SUCH AS MACY SEEK BANKRUPTCYLAW PROTECTION TO REORGANIZE THEY IMMEDIATELY FREEZE DEBT REPAYMENT OBLIGATIONS AND WIN NEW LINES OF CREDIT TO MEET SHORTTERM LIQUIDITY NEEDS BY CONTRAST MR SACHS SAYS AFTER RUSSIA SAID IT COULDN'T PAY ITS DEBTS IT TOOK MOSCOW MONTHS TO NEGOTIATE FORMAL RELIEF FROM DEBT PAYMENTS AND EVEN LONGER TO LINE UP CREDIT FROM MAJOR INDUSTRIAL NATIONS AND THE IMF WHAT'S MORE HE CONTENDS THE IMF TENDS TO IMPOSE CONTRACTIONARY POLICIES ON COUNTRIES TOO QUICKLY IT RIGIDLY PURSUES DEFICIT REDUCTION AND FREE EXCHANGE RATES A MOVE THAT GENERALLY SLASHES PURCHASING POWER IN THE SHORTTERM IF ONE LOOKS AT HIGH INFLATION COUNTRIES THAT HAVE LICKED INFLATION THIS IS ALMOST ALWAYS DONE WITH PEGGED EXCHANGE RATES THAT ALLOW A MORE GRADUAL ADJUSTMENT TO WORLD MARKET FORCES MR SACHS SAYS THEY DISCIPLINE COMPANIES AND GOVERNMENT WHILE GIVING ECONOMIES MORE TIME TO ADJUST TO WORLD MARKET FORCES HE EXPLAINS MR ODLINGSMEE REJECTS THIS CHARACTERIZATION OF IMF POLICIES WE'RE OPENMINDED ABOUT FIXED OR FLEXIBLE RATES NOTING THAT THE FUND HAS SUPPORTED THE USE OF PEGGED EXCHANGE RATES BY ISRAEL BOLIVIA MEXICO AND OTHER COUNTRIES THAT HAVE CARRIED OUT SUCCESSFUL ADJUSTMENT PROGRAMS THERE'S PLENTY OF ROOM FOR DEBATE OVER THE DETAILS OF ANY DEVELOPMENT PROGRAM BUT IMF OFFICIALS ARE SENSITIVE ABOUT ACCEPTING TOO MUCH CREDIT OR BLAME WE'RE JUST ONE OF THE PLAYERS ON THE SCENE MR ODLINGSMEE SAYS WE'RE NOT ALLPOWERFUL SEE RELATED LETTER LETTERS TO THE EDITOR ADVICE FOR RUSSIA'S REAL FRIENDS WSJ DEC 9 1993 9310250164 YY93 MM12 9312080181 931208 MUTUAL FUNDS MUTUAL FUNDS AT BANKS SHOW LITTLE PROFIT BY ROBERT MCGOUGH AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL BY CREATING THEIR OWN FAMILIES OF MUTUAL FUNDS BANKS HAVE BEEN WAGING A LARGELY SUCCESSFUL WAR IN RECENT YEARS TO RECAPTURE SOME OF THE MONEY THEY LOST TO MUTUAL FUNDS BUT THEY'VE YET TO TURN BIG PROFITS IN THE MUTUALFUND BUSINESS THE 17 BILLION ACQUISITION OF FUND GIANT DREYFUS CORP BY MELLON BANK CORP ANNOUNCED MONDAY ACCELERATES THE BANKING INDUSTRY'S HEADLONG RUSH INTO MANAGING MUTUAL FUNDS UNTIL RECENTLY BANKS HAVE BEEN GROWING THEIR OWN FUNDS AT A FURIOUS RATE RATHER THAN BUYING OUTSIDE FUND GROUPS RIGHT NOW IT'S A GAME OF GET ASSETS UNDER MANAGEMENT AND WE'LL WORRY ABOUT MAKING MONEY LATER' SAYS THOMAS LANNAN A PARTNER AT CONSULTANT DELOITTE & TOUCHE IN BOSTON BUT EVENTUALLY IT'S THE BOTTOM LINE THAT COUNTS AND UNLESS THAT BEGINS TO IMPROVE SOME BANKFUND WATCHERS BELIEVE THAT IN A FEW YEARS SOME BANKS WILL GIVE UP AND BEGIN DUMPING THEIR OWN FUNDS OF COURSE WHILE BANKS MIGHT NOT BE MAKING A LOT OF MONEY FOR THEMSELVES THEY'RE DOING WELL FOR CLIENTS BANKMANAGED FUNDS HAVE PERFORMED AS WELL AS NONBANK FUNDS THE PROPOSED ACQUISITION OF DREYFUS BY MELLON WOULD CREATE THE LARGEST BANKOWNED MANAGER OF MUTUAL FUNDS IN THE COUNTRY WITH 84 BILLION IN FUND ASSETS THAT COMPARES WITH 26 BILLION FOR THE SECONDLARGEST BANK MANAGER OF MUTUAL FUNDS PNC FINANCIAL CORP THE FEDERAL GLASSSTEAGALL ACT USED TO BE INTERPRETED TO PROHIBIT BANKS FROM SELLING AND MANAGING MUTUAL FUNDS THOUGH THERE ARE STILL REGULATORY RESTRICTIONS BANKS HAVE FOUND LOOPHOLES TO MANAGE AND SELL MUTUAL FUNDS AS LONG AS THEY ARE NOT THE UNDERWRITER OF THE FUNDS THAT THEY ADVISE A ROLE THAT CAN BE ASSIGNED TO AN OUTSIDE DISTRIBUTOR BANKS HAVE GROWN AT A RAPID RATE AS MUTUALFUND MANAGERS EVEN WITHOUT ACQUISITIONS BANKS MANAGE 116 OF MUTUALFUND ASSETS UP FROM 109 IN 1992 ACCORDING TO BOSTON CONSULTANT CERULLI ASSOCIATES INC NOTABLY BANKS NOW MANAGE 55 OF STOCK AND BOND FUNDS A 67 JUMP FROM THE 33 THEY MANAGED IN 1992 STOCK AND BOND FUNDS PAY HIGHER FEES AND ARE POTENTIALLY FAR MORE PROFITABLE TO MONEY MANAGERS THAN MONEYMARKET FUNDS BUT IT'S BEEN HARD FOR BANKS TO REAP THAT POTENTIAL PROFIT SAY SOME BANKFUND ANALYSTS TO EARN A PROFIT A MUTUAL FUND HAS TO GROW TO A CERTAIN SIZE OR THE REVENUE IT PAYS ITS MANAGER EACH YEAR WON'T BE ENOUGH TO COVER THE COST OF RUNNING THE OPERATION A LOT OF BANKMANAGED FUNDS HAVEN'T ACHIEVED THAT CRITICAL MASS YET THE AVERAGE TAXABLEBOND FUND IN THE MUTUALFUND INDUSTRY HAS 339 MILLION IN ASSETS ACCORDING TO DATA FROM LIPPER ANALYTICAL SERVICES INC QUOTED BY CERULLI BUT THE AVERAGE BANKMANAGED TAXABLEBOND FUND HAS 127 MILLION IN ASSETS ONE RULE OF THUMB IS THAT A FUND MUST HAVE 100 MILLION IN ASSETS BEFORE IT BREAKS EVEN THE GAP IN SIZE IS MORE REMARKABLE IN BALANCED FUNDS INVESTING IN BOTH STOCKS AND BONDS A FAVORITE OF THE CONSERVATIVE INVESTORS BUYING THROUGH BANKS BANKRUN BALANCED FUNDS AVERAGED 90 MILLION IN ASSETS COMPARED WITH 336 MILLION FOR THE FUND INDUSTRY IN GENERAL BECAUSE OF THEIR SMALL SIZE MANY BANKMANAGED FUNDS ARE LOSING MONEY SAYS KURT CERULLI PRINCIPAL OF CERULLI A LOT OF THEM WILL NEVER REACH BREAKEVEN I THINK A LOT OF BANKS HAVE UNDERESTIMATED THE COST OF RUNNING SMALL FUNDS THE NEED FOR CRITICAL MASS WAS SEEN BY MANY ANALYSTS AS A DRIVING FORCE IN FIRST UNION CORP'S ACQUISITION OF LIEBER & CO MANAGER OF EVERGREEN FUNDS THIS YEAR IT WAS ONE OF A NUMBER OF FACTORS BEHIND THE ACQUISITION OF DREYFUS BY MELLON I THINK IT IS THE BEGINNING OF A TREND FOR BANKS SAYS BRUCE MCEVER PRESIDENT OF BERKSHIRE CAPITAL CORP AN INVESTMENT BANK SPECIALIZING IN MONEYMANAGEMENT DEALS GIVEN THE BEWILDERING ARRAY OF MUTUAL FUNDS IN THE MARKETPLACE IT'S HARD FOR ALL BUT THE BESTKNOWN FUND GROUPS TO ATTRACT INVESTORS' ATTENTION AND MONEY BUT OTHERS SEE A TIME WHEN BANKS ESPECIALLY SMALLER ONES WILL THEMSELVES BE SELLERS OF THE UNPROFITABLE FUND GROUPS THEY ONCE STARTED WITH SUCH HIGH HOPES IN A COUPLE OF YEARS THE BANKS WITH PROPRIETARY FUND GROUPS WILL LOOK TO UNLOAD THEM SAYS MR CERULLI AFTER YEARS OF LOSSES HE EXPECTS MANY BANK FUND GROUPS WILL USE UP THEIR INTERNAL POLITICAL CAPITAL AND GET SOLD TO OTHER LARGER BANK GROUPS OR TO TRADITIONAL MUTUALFUND MANAGERS AND ANY TYPE OF CONSOLIDATION AMONG MUTUAL FUNDS RUN BY BANKS OR OTHERWISE WILL SURELY ACCELERATE WHEN FINANCIAL MARKETS RUN INTO TROUBLE CHASE MANHATTAN FUND GROUP PAUL KLUG WHO RUNS CHASE MANHATTAN'S VISTA FUND GROUP SAYS THAT FIRM WITH 55 BILLION IN US MUTUALFUND ASSETS HAS GROWN TO A PROFITABLE SIZE BECAUSE WE'RE LOOKING TO FASHION THE BUSINESS LIKE A TRADITIONAL MUTUALFUND COMPANY NOT LIKE A TRADITIONAL BANKPROPRIETARY BUSINESS WHILE VISTA FUNDS GET SOLD THROUGH BANK BRANCHES THREEFOURTHS OF ITS SALES ARE MADE THROUGH OUTSIDE BROKERS WHAT ALSO SETS VISTA APART IS THAT ITS FUNDS HAVE HAD SUCH STRONG RETURNS THAT THEY ARE IN DEMAND BY OUTSIDE BROKERS IN ANY CASE IT REMAINS CLEAR THAT BANKS HAVE BECOME POWERFUL SELLERS OF MUTUAL FUNDS THE INVESTMENT COMPANY INSTITUTE A FUND TRADE GROUP FOUND THAT 14 OF ALL STOCK AND BONDFUND SALES IN EARLY 1992 WERE MADE THROUGH BANKS INCLUDING FUNDS MANAGED BY FIRMS OTHER THAN BANKS MOST WATCHERS SAY THAT NUMBER HAS GROWN SOMEWHAT AND COULD RISE TO AS MUCH AS 25 OF STOCK AND BONDFUND SALES BANKS WANT TO GET INTO THE FUND BUSINESS ACCORDING TO A SURVEY TAKEN AT THE ANNUAL CONVENTION OF THE AMERICAN BANKERS ASSOCIATION 438 OF BANKS BELIEVE SELLING MUTUAL FUNDS AND INSURANCE IS A HIGH PRIORITY AND OF THOSE BANKS THAT ARE LOSING MARKET SHARE MORE THAN 65 SAID THEY'RE LOSING IT TO MUTUAL FUNDS IT'S NO DISASTER IF BANKS LOSE DEPOSITS BECAUSE WITH LITTLE DEMAND STILL FOR LOANS BANKS DON'T HAVE MANY WAYS TO USE DEPOSITS BANKS HAVE YET TO START RAISING DEPOSIT RATES TO KEEP CUSTOMERS' DEPOSITS RATHER THEY HAVE OPENED KIOSKS TO SELL FUNDS AND OTHER PRODUCTS SUCH AS INSURANCE IN EFFECT THEY WANT TO KEEP CUSTOMERS IN THE BANK BUT OFF THE BALANCE SHEET WHILE IT MAY BE HARD FOR MANY BANKS TO TURN A PROFIT MANAGING THEIR OWN FUNDS IT'S QUITE A DIFFERENT MATTER WHEN IT COMES TO BANKS SELLING OTHERS' FUNDS MUCH AS SECURITIES BROKERS DO THE BIG NEWS IN THE FUND INDUSTRY IS THAT BANKS ARE TAKING MARKET SHARE AWAY FROM BROKERAGE FIRMS SAYS RICHARD DAVIES PRESIDENT OF FIRST CHICAGO INVESTMENT SERVICES CURRENTLY ONLY ABOUT 10 TO 15 OF FIRST CHICAGO'S MUTUALFUND SALES ARE OF INHOUSE FUNDS AND THE REMAINDER ARE MANAGED BY OUTSIDE FIRMS WE ARE INTERESTED IN GETTING MORE AGGRESSIVE MR DAVIES SAYS I DON'T KNOW IF THAT MEANS PURCHASING A MUTUAL FUND COMPANY OR NOT BUT THE WAYS IN WHICH SOME BANKS MARKET FUNDS HAVE GOTTEN THEM INTO HOT WATER WITH REGULATORS WHO ARE FINDING THAT MANY BANKS HAVEN'T SUFFICIENTLY DISCLOSED THAT MUTUAL FUNDS AREN'T FEDERALLY INSURED AND THAT INVESTORS CAN SUFFER LOSSES LAST MONTH THE OFFICE OF THE COMPTROLLER OF THE CURRENCY WARNED BANKS AT THE ANNUAL CONVENTION OF THE AMERICAN BANKERS ASSOCIATION THAT THEY WEREN'T SUFFICIENTLY DISCLOSING THE RISKS IN MUTUAL FUNDS I AM VERY UNHAPPY FROM WHAT I HAVE HEARD AND SEEN THAT SOME BANKS ARE NOT COMPLYING WITH OUR GUIDELINES IN THIS AREA SAID EUGENE LUDWIG COMPTROLLER OF THE CURRENCY REGULATORS IN BANKS ACROSS THE US ARE SCOURING MARKETING LITERATURE FOR SUFFICIENT DISCLOSURE IF THEY'RE OFFERING MUTUAL FUNDS TO CUSTOMERS WE WANT TO SEE WHAT THE MARKETING MATERIALS LOOK LIKE AN OCC SPOKESWOMAN SAID THAT'S NOT TO SAY REGULATORS OPPOSE THE PUSH BY BANKS INTO MUTUAL FUNDS BUT JUST THAT THERE NEEDS TO BE FULL DISCLOSURE TO INVESTORS IN AN INTERVIEW FRANK NEWMAN UNDERSECRETARY OF THE TREASURY FOR DOMESTIC FINANCE WOULDN'T DISCUSS THE MELLON ACQUISITION BUT HE SAID THE CLINTON ADMINISTRATION SUPPORTS THE TENET THAT BANKS HAVE TO ADAPT TO THE TIMES HE ADDED THE ATTITUDE OF THIS ADMINISTRATION IS IF THAT'S WHAT CONSUMERS WANT THEN REGULATORS SHOULDN'T STAND IN THE WAY 9312080180 931208 AMR CORP FORECASTS SIGNIFICANT' LOSS STEMMING FROM STRIKE AT AMERICAN AIR BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL FORT WORTH TEXAS AMR CORP SAID IT EXPECTS TO REPORT A SIGNIFICANT LOSS IN THE FOURTH QUARTER AND FOR THE FULL YEAR BECAUSE OF LAST MONTH'S FIVEDAY FLIGHT ATTENDANTS STRIKE AGAINST ITS AMERICAN AIRLINES UNIT MICHAEL J DURHAM AMERICAN'S CHIEF FINANCIAL OFFICER SAID IN A STATEMENT THAT PRELIMINARY ESTIMATES INDICATE THE STRIKE WILL REDUCE AFTERTAX EARNINGS FOR THE CURRENT QUARTER ENDING DEC 31 BY MORE THAN 160 MILLION NEWS OF AMR'S PROJECTED LOSS WAS APPARENTLY NO SURPRISE ON WALL STREET WHERE THE COMPANY'S SHARES ROSE 1625 YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TO CLOSE AT 6750 SEVERAL ANALYSTS HAD LOWERED THEIR FOURTHQUARTER ESTIMATES FOR AMR JUST AFTER THE STRIKE ENDED NOV 22 TO ROUGHLY BREAK EVEN FROM A PROFIT OF 150 A SHARE BY THE TIME THE ANNOUNCEMENT WAS MADE YESTERDAY THOUGH THE CONSENSUS ESTIMATE OF AMR'S FOURTHQUARTER LOSS WAS LOWER STILL A LOSS OF 102 A SHARE ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WHICH POLLED 11 AIRLINE ANALYSTS ALTHOUGH AMR HAD SAID THE STRIKE WOULD CAUSE THE COMPANY TO LOSE MONEY IT HADN'T SPELLED OUT HOW MUCH UNTIL NOW AND THE AMOUNT MR DURHAM DISCLOSED YESTERDAY WAS HIGHER THAN THE 100 MILLION PRETAX NUMBER THAT HAD BEEN BANDIED ABOUT WALL STREET IN RECENT WEEKS NOT EVEN AMR COULD EXPLAIN WHY ITS SHARES CLOSED UP FOR THE DAY ALTHOUGH ITS INVESTOR RELATIONS DIRECTOR BELLA GOREN NOTED THAT THE STOCK WAS DOWN EARLY IN THE DAY AND VOLUME WAS HALF ITS USUAL LEVEL OF ABOUT 600000 SHARES I DON'T KNOW WHAT TO SAY THERE'S NO REASON I WOULD KNOW WHY THE COMPANY'S STOCK ROSE SHE SAID AIRLINES OFTEN LOSE MONEY DURING THE FOURTH QUARTER AS TRAVELERS CUT BACK THEIR FLYING AFTER THE SUMMER IN THE YEARAGO QUARTER AMR HAD A NET LOSS OF 200 MILLION OR 266 A SHARE ON REVENUE OF 358 BILLION BEFORE SEVERAL SPECIAL ITEMS AMR'S FOURTHQUARTER LOSS LAST YEAR WAS 166 MILLION OR 220 A SHARE AMR'S NET LOSS FOR THE FULL YEAR 1992 WAS 935 MILLION OR 1249 A SHARE MORE THAN HALF OF WHICH WAS THE RESULT OF ACCOUNTING CHANGES EXCLUDING THE ACCOUNTING CHANGES AMR'S LOSS WOULD HAVE BEEN 416 MILLION OR 556 A SHARE REVENUE FOR THE FULL YEAR WAS 1358 BILLION IT WAS LAST YEAR THAT AMERICAN LAUNCHED A FARE OVERHAUL THAT ULTIMATELY LED TO AN ALLOUT SUMMER FARE WAR THAT CAUSED HUGE LOSSES AT ALL CARRIERS AMR MADE ITS ANNOUNCEMENT ABOUT THIS YEAR'S LOSS AT THE SAME TIME IT SAID THAT AMERICAN'S NOVEMBER TRAFFIC PLUMMETED 168 FROM A YEAR AGO ALSO BECAUSE OF THE STRIKE AMERICAN FLEW 628 BILLION REVENUE PASSENGER MILES COMPARED WITH 755 BILLION IN NOVEMBER 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE AMERICAN'S NOVEMBER LOAD FACTOR OR PERCENTAGE OF SEATS FILLED FELL TO 514 FROM 591 A YEAR AGO FOR THE YEARTODATE AMERICAN SAID ITS REVENUE PASSENGER MILES STAYED VIRTUALLY FLAT AT 8940 BILLION COMPARED WITH 8936 BILLION LAST YEAR LOAD FACTOR FOR THE 11 MONTHS DROPPED TO 605 FROM 64 9312080179 931208 FLYING SOUTH US AIRLINES COMPETE FOR LATIN AMERICA RUFFLE SOME FEATHERS AMERICAN UNITED IMPROVE SERVICE BUT OVERMATCH SMALL NATIONAL CARRIERS THE CRUSH AT MIAMI AIRPORT BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL IT MAY BE THE IDEAL AIRLINE MARKET COMPETITION IS WEAK ECONOMIES ARE GROWING AND TRAVELERS HAVE A PENCHANT FOR FLYING FIRST CLASS THE MARKET IS LATIN AMERICA AND US AIRLINES ARE SLUGGING IT OUT FOR THEIR PIECE OF THE SKY WHILE THE BATTLE IS BRINGING SHARPLY IMPROVED SERVICE TO THE REGION IT IS ALSO BRUISING THE MUCH SMALLER AIRLINES OF CENTRAL AND SOUTH AMERICA AND THE CARIBBEAN AMERICAN AIRLINES ALONE FLIES TO 51 CITIES IN THE REGION EACH DAY THREATENING THE VERY EXISTENCE OF SOME OF THE FOREIGN CARRIERS IT'S NOT POSSIBLE TO COMPETE WITH MOHAMMED ALI SAYS FERNANDO ENRIQUE DOZO AIRPOLICY DIRECTOR OF AEROLINEAS ARGENTINAS THE ARGENTINE FLAG CARRIER WE HAVE ONLY SEVEN INTERNATIONAL PLANES AMERICAN HAS 99 INTERNATIONAL PLANES THE EXTENT OF THE THREAT CAN BE SEEN AT THE AMERICAN AIRLINES COUNTERS AT MIAMI INTERNATIONAL AIRPORT WHICH HAS EMERGED AS A KEY BATTLEGROUND FOR AIR SUPREMACY OVER THE AMERICAS ON A RECENT SATURDAY FLIGHT MONITORS SHOWED PLANES ARRIVING FROM BOGOTA COLOMBIA LIMA PERU PANAMA CITY PANAMA AND TWO CITIES IN ECUADOR LINES WERE FORMING FOR FLIGHTS TO CARACAS VENEZUELA AND SAN JUAN PUERTO RICO IN OTHER LINES PASSENGERS WERE MAKING CONNECTIONS FOR BERLIN VIA CHICAGO AND FOR ZURICH VIA NEW YORK FROM ITS FOURYEAROLD HUB HERE AMERICAN FLIES DAILY TO 24 CENTRAL AND SOUTH AMERICAN CITIES AND 16 IN THE CARIBBEAN INCLUDING SUCH OBSCURE ONES AS SANTA CRUZ BOLIVIA AND SAN PEDRO SULA HONDURAS AMERICAN A UNIT OF AMR CORP IS LEADING A HUGE NEW FORMATION OF US AIRLINES FLYING FROM MIAMI AND OTHER US GATEWAYS TO THE VAST MARKET STRETCHING FROM MEXICO DOWN TO THE TIP OF SOUTH AMERICA THE COMPETITION REALLY TOOK OFF ABOUT THREE YEARS AGO FIRST AMERICAN BOUGHT EASTERN AIRLINES' SOUTHERN ROUTES BEFORE EASTERN WENT DOWN IN BANKRUPTCY THEN UAL CORP'S UNITED AIRLINES NOW AMERICAN'S CHIEF US RIVAL IN LATIN AMERICA ACQUIRED ROUTES FROM PAN AMERICAN WORLD AIRWAYS IN PAN AM'S LIQUIDATION MEANWHILE CONTINENTAL AIRLINES HAS BEEN ADDING FLIGHTS TO MEXICO CENTRAL AMERICA AND THE CARIBBEAN AND DELTA AIR LINES IS CONSIDERING SIMILAR MOVES THE EXPANSION HAS BROUGHT TO THE REGION MULTIPLE DAILY NONSTOP FLIGHTS PUNCTUALITY SPLASHY ADVERTISING POWERFUL COMPUTER RESERVATIONS SYSTEMS AND FREE MILEAGE AWARDS REVOLUTIONARY FEATURES IN LATIN AMERICA AS A RESULT OF THESE DEVELOPMENTS AND THE REGION'S STRONG ECONOMIES MORE TRAVELERS AND FREIGHT ARE FLYING ON NORTHSOUTH ROUTES AIRFARES HAVE DROPPED AND SERVICE HAS MARKEDLY IMPROVED THE NUMBER OF FLIGHTS FROM THE US TO LATIN AMERICA HAS SOARED 69 IN THE PAST THREE YEARS WITH TRIPLEDIGIT INCREASES TO CENTRAL AMERICA AND DEEP SOUTH AMERICA ACCORDING TO NEW YORK AIRLINE CONSULTANTS SH&E INC THIS YEAR THE LOWEST ROUNDTRIP FARE ON SAY THE MIAMICARACAS ROUTE HAS FALLEN TO 198 FROM 340 AIRCARGO TARIFFS BETWEEN THE US AND CHILE HAVE DECLINED 25 SINCE AMERICAN AND CHICAGOBASED UNITED ENTERED THE MARKET SAYS ONE CHILEAN AIRLINE EXECUTIVE AS FOR SERVICE CONSIDER VARIG THE BRAZILIAN CARRIER NO LONGER COMBINES SAO PAULO AND RIO DE JANEIRO ON ITS FLIGHTS FROM MIAMI TO MATCH US CARRIERS VARIG NOW SERVES BRAZIL'S LARGEST CITIES NONSTOP SUCH CHANGES ARE GOOD FOR TRAVELERS BUT ARE HURTING LATIN AMERICA'S MOSTLY SMALL MONEYLOSING AIRLINES AMERICAN AND UNITED IN PARTICULAR ARE FORCING THE LATIN AMERICAN AIRLINES TO GET THEIR ACTS TOGETHER SAYS ROBERT C BOOTH AN AVIATION CONSULTANT IN MIAMI USED TO LESSROBUST COMPETITION FROM EASTERN AND PAN AM IN THEIR WANING DAYS MANY LATIN AMERICAN CARRIERS NOW ARE HEMORRHAGING MONEY IN THEIR EFFORTS TO COMPETE WITH AMERICAN AND UNITED AND TO COPE WITH BIG CHANGES AT HOME SUCH AS NEW DOMESTIC AND REGIONAL COMPETITORS AN END TO GOVERNMENT SUBSIDIES AND PRIVATIZATION THE BALLGAME HAS CHANGED CONSIDERABLY SAYS ROBERT PAPKIN A WASHINGTON ATTORNEY WHO REPRESENTS SEVERAL LATIN AMERICAN AIRLINES HIS CLIENTS HE SAYS ARE BEING EXPOSED TO A WORLD OF COMPETITION TOO MUCH TOO FAST THE INVASION HAS SPURRED SOME CALLS TO ERECT DEFENSES WE HAVE TO PROTECT OUR OWN AREAS SAYS JACK MILES AN EXECUTIVE AT NEWLY PRIVATIZED AEROPERU IN LIMA NOTING AMERICAN'S GREAT STRIDES IN THE REGION HE SAYS US AIRLINES FOR THE TIME BEING SHOULD BE RESTRAINED FOR THE AIRLINES SOUTH AMERICA VS NORTH AMERICA IS A CASE OF DAVID AND GOLIATH LATIN AMERICA'S ENTIRE JET FLEET CONSISTS OF ONLY ABOUT 700 AIRCRAFT AMERICAN AND UNITED EACH HAVE ABOUT THAT MANY PLANES DESPITE LOWER LABOR RATES LATIN AMERICAN CARRIERS' LACK OF BUYING POWER SMALL HOME MARKETS AND BLOATED WORKFORCES RENDER THEIR COSTS 25 HIGHER THAN THOSE OF THEIR US RIVALS AND FOR MANY LATIN AMERICAN AIRLINES THEIR US ROUTES ARE AMONG THEIR MOST IMPORTANT AND NOW ARE MOST AT RISK SOME ARE BEGINNING TO FIGHT BACK BY PURSUING INNOVATIVE STRATEGIES OR BY TEAMING UP WITH OTHER AIRLINES IN THE REGION AND BEYOND BUT A GROWING NUMBER OF AIRLINES AND GOVERNMENTS ARE STIFFENING THEIR OPPOSITION TO WHAT THEY SEE AS PREDATORY PRACTICES BY US CARRIERS AIRLINES IN SUCH COUNTRIES AS COSTA RICA BOLIVIA GUATEMALA AND JAMAICA HAVE AT VARIOUS TIMES ACCUSED US CARRIERS OF PRICECUTTING CAPACITYDUMPING AND PREDATORY SCHEDULING ALL CHARGES THAT US AIRLINES DENY PARTICULARLY VULNERABLE ARE AIRLINES IN COUNTRIES THAT HAVE EMBRACED THE SAME FREEMARKET AVIATION POLICIES THE US ESPOUSES MEXICO CHILE COSTA RICA VENEZUELA AND GUATEMALA HAVE ALL SIGNED LIBERAL AVIATION TREATIES WITH THE US OTHER COUNTRIES INCLUDING COLOMBIA AND BRAZIL HAVE MORE THAN ONE CARRIER SERVING THE US MEANING MORE THAN ONE US AIRLINE CAN RECIPROCATE US TRANSPORTATION SECRETARY FEDERICO PENA DID LITTLE TO EASE FEARS ABOUT US AIR POWER WHEN HE WARNED INTERNATIONAL AIRLINE CHIEFS RECENTLY THAT THE US WILL VIGOROUSLY DEFEND ALL OF ITS EXISTING AIR TREATIES AND SEEK TO LIBERALIZE THOSE IT VIEWS AS RESTRICTIVE YOU CAN RUN BUT YOU CAN'T HIDE HE TOLD THEM IN A SPEECH IN DALLAS WHICH WAS POORLY RECEIVED BY THE FOREIGN EXECUTIVES PRESENT BUT DUKING IT OUT WITH THE NORTH AMERICANS CAN BE UGLY VARIG WHICH GETS ABOUT 17 OF ITS INTERNATIONAL REVENUE FROM THE US HAS BEEN LOSING MONEY ON THOSE ROUTES SINCE 1991 WHEN BRAZIL SIGNED A TREATY WITH THE US ALLOWING EACH SIDE TO OFFER 52 MORE FLIGHTS WE LIKE COMPETITION SAYS VARIG CHAIRMAN RUBEL THOMAS BUT THE MARKET HASN'T GROWN BY HALF IN THE PAST TWO YEARS THUS VARIG DOESN'T EXPECT ITS US ROUTES TO BE PROFITABLE AGAIN UNTIL 1995 HE SAYS UNDER MOST CIRCUMSTANCES IT IS EASY FOR THE US CARRIERS TO DOMINATE FOR INSTANCE US AIRLINES HAD ONLY 34 OF THE USCHILE MARKET IN 1990 ACCORDING TO TRANSPORTATION DEPARTMENT FIGURES THROUGH AUGUST OF THIS YEAR AMERICAN AND UNITED FLEW AWAY WITH HALF OF THE MARKET WHICH HAS GROWN BY 56 SINCE 1990 AND TODAY US CARRIERS OFFER 62 OF THE SEATS AVAILABLE BETWEEN THE TWO COUNTRIES US MARKET SHARE AND CAPACITY HAVE GROWN SIMILARLY ELSEWHERE IN THE REGION SOMETIMES IT FEELS LIKE WE'RE IN THE MIDDLE OF A FIGHT BETWEEN TWO BIG AMERICANS SAYS JOSE LUIS IBANEZ PRESIDENT AND 55 OWNER OF LADECO A CHILEAN AIRLINE THE TRANSPORTATION DEPARTMENT LENDS SOME CREDENCE TO THIS VIEW TOO I DON'T KNOW HOW MUCH AMERICAN'S BATTLE PLANS TAKE INTO ACCOUNT THE LOCAL AIRLINES SAYS ONE OFFICIAL BUT EVERYTHING AMERICAN DOES IS COUCHED IN TERMS OF HOW TO DEAL WITH UNITED NONSENSE RETORTS ARNOLD J GROSSMAN AMERICAN'S VICE PRESIDENT OF INTERNATIONAL PLANNING WE DON'T WANT TO PUT ANYBODY OUT OF BUSINESS HE SAYS HE DENIES SUGGESTIONS THAT BECAUSE WE CAN'T MAKE MONEY IN THE US WE PUT PLANES ON INTERNATIONAL ROUTES AMERICAN ISN'T LEADING THE PRICE CUTTING IN LATIN AMERICA HE SAYS AND WE DON'T OPERATE TO LOSE MONEY AS FOR UNITED HE ADDS IT'S HARDER TO GET INTO THE MARKET WHEN YOU'RE NO 2 IN JUST THREE YEARS AMERICAN JETTED TO FIRST PLACE AMONG US CARRIERS FLYING TO THE REGION AND SECOND OVERALL BEHIND AEROMEXICO IN FLIGHTS BETWEEN THE US AND LATIN AMERICA AEROMEXICO OPERATES 24 OF THE FLIGHTS ACCORDING TO SH&E AND AMERICAN HAS MORE THAN 22 WITH MIAMI AS ITS MAIN BEACHHEAD NOT EVEN UNITED CAN OFFER AS MANY FLIGHT COMBINATIONS IN MIAMI AND THE OTHER LATIN AIRLINES CAN ONLY DELIVER THEIR NORTHBOUND PASSENGERS TO US GATEWAYS AND LET US CARRIERS FLY THEM ON TO OTHER DESTINATIONS US AIRLINES ALSO SERVE LATIN AMERICA FROM NEW YORK DALLAS LOS ANGELES AND OTHER CITIES US AIRLINES ARE FLOCKING TO LATIN AMERICA BECAUSE OF A NORTHSOUTH TRAVEL BOOM SPARKED BY THE REGION'S UNPRECEDENTED POLITICAL STABILITY AND RECENT ECONOMIC STRENGTH LATIN STOCK MARKETS ARE HITTING NEW HIGHS INFLATION HAS MOSTLY COME UNDER CONTROL AND TRADE BARRIERS ARE FALLING THE REGION ALSO HOLDS PROMISE AS A VACATION SPOT FOR NORTH AMERICANS AS A RESULT LATIN AMERICA LONG A BACKWATER FOR THE INDUSTRY HAS BECOME A GROWING AND LUCRATIVE MARKET FOR US AIRLINES TWO DECADES AGO THE REGION ACCOUNTED FOR JUST 3 OF GLOBAL AVIATION IT NOW ACCOUNTS FOR 5 AND IS SECOND ONLY TO THE ASIAPACIFIC REGION IN PROJECTED GROWTH THROUGH THE DECADE IN CONTRAST TO MOST OF THEIR OTHER MARKETS ALL THE US PASSENGER CARRIERS EXCEPT FOR LATECOMER UNITED ARE EARNING PROFITS IN THE REGION A VISIT TO THE MIAMI AIRPORT SUGGESTS WHY AND HOW THE FOREIGN AIRLINES DESPITE THE ADDED COMPETITION ARE BENEFITING TOO ON A RECENT DAY OT FULGHUM JR HEAD OF A GEORGIA PAPEREQUIPMENT COMPANY STOOD IN LINE AT THE COUNTER OF AVIATECA A GUATEMALAN CARRIER FOR A FLIGHT TO MANAGUA NICARAGUA I NEVER HEARD OF AVIATECA UNTIL YESTERDAY MR FULGHUM SAYS BUT ALL FLIGHTS TO MANAGUA ON US AIRLINES WERE BOOKED SOLID FOR TWO DAYS BEA SMITH AN AMERICAN MISSIONARY IN BELIZE IS RETURNING THERE FROM MIAMI ON TACA INTERNATIONAL AIRLINES OF EL SALVADOR SHE SAYS SHE HAS BEEN REALLY BLESSED BY THE GROWTH OF FLIGHTS TO CENTRAL AMERICA NOW YOU CAN GET OUT OF BELIZE ANY DAY IN THE MORNING OR IN THE AFTERNOON THE NEW FLIGHTS ARE BRINGING AN INFLUX OF US TOURISTS SHE ADDS BUT THE GROWTH OF FLIGHTS HAS ALSO BROUGHT BITTER DISPUTES IN MAY AMERICAN ANNOUNCED THAT IT WAS ADDING A SECOND DAILY NONSTOP BETWEEN MIAMI AND SANTIAGO CHILE WHEN CHILEAN AIRLINES COMPLAINED THAT THIS WOULD SWAMP THE MARKET THE LOCAL GOVERNMENT BLOCKED AMERICAN'S PLAN AND TURNED THE MATTER OVER TO CHILE'S ANTITRUST COMMISSION TIRED OF WAITING FOR CHILE'S RESPONSE AMERICAN IN OCTOBER FILED A COMPLAINT AGAINST THE CHILEAN GOVERNMENT AND THREE LOCAL AIRLINES WITH THE US TRANSPORTATION DEPARTMENT IT ALLEGED THE CHILEAN GOVERNMENT WAS VIOLATING TERMS OF ITS AIR TREATY IN FILINGS OVER THE DISPUTE UNITED WHICH ALSO FLIES DAILY TO SANTIAGO FROM MIAMI AND IS A DISTANT SECOND TO AMERICAN IN THE REGION SUGGESTED THAT THE US SHOULD GIVE LATIN AMERICA BREATHING ROOM WHILE ITS AIRLINES RESTRUCTURE AND BECOME COMPETITIVE IT IS NAIVE TO ASSUME THAT FOREIGN GOVERNMENTS WILL BE PREPARED TO DEFER TO MARKET FORCES IF THEY BELIEVE SUCH A DECISION COULD CONSTITUTE A DEATH SENTENCE FOR THEIR CARRIERS JAMES E GOODWIN UNITED'S SENIOR VICE PRESIDENT INTERNATIONAL SAID AT THE TIME BUT LAST MONTH THE TRANSPORTATION DEPARTMENT SIDED WITH AMERICAN AND PROPOSED SLASHING CHILE'S LADECO AIRLINE TO FOUR WEEKLY SANTIAGOMIAMI FLIGHTS FROM SEVEN AND HALVING THE EIGHT WEEKLY RUNS TO MIAMI BY LANCHILE ANOTHER CHILEAN CARRIER IN THE WAKE OF THAT DECISION THE PARTIES ARRIVED AT A COMPROMISE AMERICAN GETS ITS EXTRA FLIGHT BUT ONLY FOR 4 1/2 MONTHS A YEAR DURING HIGH SEASONS AND CHILE'S AIRLINES GET THE RIGHT TO OFFER MORE FLIGHTS TO THE US THOUGH IT IS UNCLEAR THAT THEY WANT TO OR ARE ABLE TO DO SO LADECO'S MR IBANEZ SAYS IT WOULD BE TOTALLY UNREASONABLE FOR THE US TO RETALIATE AGAINST CHILEAN AIRLINES DO YOU THINK ANY OTHER COUNTRY IN LATIN AMERICA IS GOING TO WANT TO SIGN AN OPENSKIES TREATY WITH THE US IF THE US PLAYS HARDBALL WITH CHILE HE SAYS WHILE THE CHILEAN COMPROMISE AVERTED A MAJOR FIGHT THE ISSUE HAS NOT BEEN PUT TO BED AT ALL CONTENDS MR BOOTH THE MIAMIBASED CONSULTANT THIS WAS A PATCH JOB TO KEEP WORLD WAR III FROM HAPPENING IF SIMILAR DISPUTES FLARE UP AGAIN HE SAYS LATIN COUNTRIES WITH LIBERAL US AIR TREATIES MAY ABANDON THOSE AGREEMENTS WHILE OTHER GOVERNMENTS WILL CONTINUE TO RESTRICT ACCESS TO THEIR MARKETS ALREADY ARGENTINA IN OCTOBER ORDERED AMERICAN AND UNITED TO CUT THEIR FLIGHTS TO BUENOS AIRES CLAIMING THE US CARRIERS WERE FLYING MORE THAN ALLOWED BY TREATY ECUADOR HAS PUT OFF RENEGOTIATING ITS AIR TREATY WITH THE US A NEW TIFF BETWEEN UNITED AND THE SAN JOSE COSTA RICA AIRPORT HAS LED THE US TO BLOCK A PLAN BY TWO COSTA RICAN AIRLINES TO FLY TO TAMPA FLA FACED WITH LITTLE CHOICE SOME LATIN CARRIERS ARE TRYING TO BEAT THE US AIRLINES AT THEIR OWN GAME MOST ARE UPGRADING THEIR FLEETS THROUGH LEASES AND ARE IMPROVING PASSENGER SERVICES SOME AIRLINES ARE SEEKING ALLIANCES VARIG IS NEGOTIATING A DEAL WITH DELTA THAT WOULD GIVE THE BRAZILIAN CARRIER'S CUSTOMERS ACCESS TO DELTA'S FREQUENTFLIER PLAN FIVE CENTRAL AMERICAN CARRIERS MOST LINKED BY EQUITY TO EL SALVADOR'S TACA ALREADY BUY PLANES INSURANCE AND FUEL TOGETHER AND COORDINATE SCHEDULES FIFTEEN CARRIERS IN LATIN AMERICA RECENTLY HIRED MR BOOTH TO STUDY THE FEASIBILITY OF CREATING A MULTIAIRLINE FREQUENTFLIER PROGRAM YOU'D HAVE TO BE TOTALLY MAD TO ACCEPT THAT WE ARE GOING TO PERMIT AMERICAN TO CARRY ALL OF OUR BUSINESS SAYS LADECO'S MR IBANEZ 9312080178 931208 WHO'S NEWS KELLOGG CO KELLOGG CO BATTLE CREEK MICH WILLIAM J MAYER 38 YEARS OLD FORMERLY CORPORATE MEDICAL DIRECTOR WAS NAMED TO THE NEW POST OF VICE PRESIDENT MEDICAL AFFAIRS OF THIS FOOD CONCERN 9312080177 931208 CREDIT MARKETS TREASURY PRICES CHANGE LITTLE AS INVESTORS AWAIT TWO INFLATION REPORTS TO BE RELEASED THIS WEEK BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND PRICES CHANGED LITTLE AS INVESTORS WAITED ON THE SIDELINES IN ADVANCE OF TWO INFLATION REPORTS SCHEDULED TO BE RELEASED TOMORROW AND FRIDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 101 2/32 ITS YIELD WAS UNCHANGED AT 616 PARTLY BECAUSE OF THE INFLATION REPORTS AND PARTLY BECAUSE THE YEAR IS NEARING AN END INVESTORS LARGE AND SMALL WERE RELUCTANT TO MAKE BIG CHANGES IN THEIR TREASURY HOLDINGS THERE IS VERY LITTLE CUSTOMER ACTIVITY SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA INC MOST ACCOUNTS ARE ON THE SIDELINES WAITING THIS MONTH OUT COMMENTS FROM SEVERAL FEDERAL RESERVE OFFICIALS ADDED TO THE SLIGHTLY NEGATIVE TONE IN THE MARKET IN PARTICULAR ANALYSTS SAID THOSE BY FED VICE CHAIRMAN DAVID MULLINS MAY HAVE SET THE STAGE FOR A TIGHTENING OF MONETARY POLICY DURING THE FIRST HALF OF NEXT YEAR DURING AN APPEARANCE IN WASHINGTON MR MULLINS ARGUED THAT WHILE THERE IS NO EVIDENCE THAT INFLATION PRESSURES HAVE ALREADY BUBBLED UP THERE ARE SOME EARLY WARNING SIGNALS FOR THE CENTRAL BANK TO BE CONCERNED ABOUT MR MULLINS ADDED THAT THE FED CANNOT AFFORD TO WAIT UNTIL HIGHER INFLATION IS EVIDENT IN ECONOMIC STATISTICS BEFORE RAISING INTEREST RATES THE MARKET STARTED THE DAY WITH A RISE EXTENDING GAINS POSTED FRIDAY AND MONDAY BUT THE RALLIES GENERATED ONLY MODEST BUYING INTEREST FROM LARGE INSTITUTIONAL INVESTORS MANY BIG INVESTORS HAVING PROFITED FROM THE DROP IN YIELDS THIS YEAR HAVE CLOSED THEIR BOOKS FOR 1993 INSTEAD MOST BUYING DURING THE PAST FEW DAYS HAS BEEN FROM TRADERS CLOSING OUT SHORT POSITIONS A SHORT SALE IS A BET THAT PRICES WILL FALL IN WHICH A TRADER SELLS A BORROWED SECURITY IN HOPES OF REPLACING IT AT A LOWER PRICE AND POCKETING THE DIFFERENCE HOWEVER THE MARKET QUICKLY RAN OUT OF STEAM AND TURNED SOUTH YESTERDAY MORNING ONCE THE SHORTCOVERING BUYING PETERED OUT TRADERS WHO HAD GAMBLED THE MARKET WOULD CONTINUE TO RISE HAD TO SELL TRADERS STRESSED THAT THE PRICE SWINGS WITH THE PRICE ON THE 30YEAR BOND DOWN AS MUCH AS 2/3 POINT HAD LITTLE FUNDAMENTAL BASIS IT WAS A RANGETRADING DAY SAID WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES VAN SILER A MANAGING PARTNER AT RJ WALLS & CO AGREED IT'S JUST A TECHNICAL MARKET HE SAID MANY MARKET PLAYERS ARE BIDING THEIR TIME AHEAD OF KEY INFLATION DATA TOMORROW THE LABOR DEPARTMENT IS SCHEDULED TO RELEASE THE NOVEMBER PRODUCERPRICE INDEX REPORT WHICH WILL BE FOLLOWED FRIDAY BY THE CONSUMERPRICE INDEX FOR THE MONTH BOTH ARE EXPECTED TO BE RELATIVELY FAVORABLE FOR THE BOND MARKET ALTHOUGH TRADERS SAID THE MARKET ALREADY HAS PRICED ITSELF FOR GOOD INFLATION NEWS TODAY TRADERS AND INVESTORS WILL HAVE TO CONTEND WITH THE FEDERAL RESERVE'S BEIGE BOOK REPORT WHICH PRESENTS ANECDOTAL EVIDENCE OF ECONOMIC CONDITIONS IN THE 12 FEDERAL RESERVE DISTRICTS LATE IN YESTERDAY'S SESSION PRICES CREPT UP IN RESPONSE TO FIGURES SHOWING A SLOWDOWN IN CONSUMER SPENDING THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED SALES AT CHAIN AND DEPARTMENT STORES FELL 22 DURING THE FIRST WEEK OF DECEMBER FROM NOVEMBER THE COMMENTS BY THE FED'S MR MULLINS HELPED SEND PRICES LOWER AT MIDMORNING BUT FED WATCHERS SAID THEY PRESENTED MORE OF A LONGERTERM HURDLE TO THE MARKET THAN AN IMMEDIATE ONE THE FED IS WRESTLING WITH THE QUESTION NOT OF WHETHER THEY SHOULD TIGHTEN BUT WHEN SAID DAVID RESLER CHIEF ECONOMIST AT NOMURA SECURITIES INTERNATIONAL INC MR MULLINS SAID THAT WE HAVE NOTHING TO FEAR IN TERMS OF AN IMMEDIATE THREAT OF INFLATION BUT THE FED ISN'T WORRIED ABOUT WHAT IS GOING TO HAPPEN NEXT WEEK NEXT MONTH OR EVEN NEXT QUARTER IT IS CONCERNED ABOUT LAYING THE GROUNDWORK THROUGH A POLICY MISSTEP FOR AN OUTBREAK OF INFLATION SOMEWHERE IN THE FUTURE FOR THAT REASON MANY ANALYSTS NOW SAY THAT SHOULD THE ECONOMY CONTINUE TO EXPAND AT A HEALTHY PACE OF 3 OR HIGHER IN THE EARLY PART OF 1994 THE FED WILL ACT TO RAISE INTEREST RATES DURING THE SPRING OF 1994 BY RAISING RATES THE FED WOULD HOPE TO KEEP ECONOMIC GROWTH FROM ACCELERATING TO A POINT AT WHICH THERE WOULD BE A RESURGENCE OF INFLATION IF THEY WANT TO DO THEIR JOBS PROPERLY THEY CAN'T WAIT UNTIL INFLATION IS A PROBLEM SAID MR MCCARTHY OF STONE & MCCARTHY THEY HAVE TO TRY AND PREEMPT IT RJR NABISCO INC'S BONDS SHRUGGED OFF NEWS THAT ITS PARENT RJR NABISCO HOLDINGS CORP WILL TAKE A FOURTHQUARTER CHARGE RJR NABISCO HOLDINGS SAID IT WILL TAKE A RESTRUCTURING CHARGE OF 32 CENTS A DILUTED SHARE OR 445 MILLION THE MAJOR SOURCE OF THE FOURTHQUARTER CHARGE IS WORK FORCE REDUCTION OF ABOUT 6000 JOBS IN THE TOBACCO AND FOOD OPERATIONS THE CHARGE HAD BEEN EXPECTED BY THE MARKET AND IT WILL HAVE LITTLE IMPACT ON THE COMPANY OVER THE LONG TERM ACCORDING TO EDWARD MALLY DIRECTOR CORPORATE BOND RESEARCH AT SALOMON BROTHERS INC AS A RESULT THE PRICES OF RJR NABISCO INC BONDS DIDN'T MOVE IT'S A LITTLE BIT OF A HIT NOW FOR SOME SAVINGS IN THE FUTURE THE CORPORATEBOND SECTOR RESPONDED WITH A COLLECTIVE YAWN SAID MR MALLY THE NEW ISSUE MARKET WAS QUIET WITH ONLY THREE NEW ISSUES TOTALING 670 MILLION SOLD YESTERDAY FLORIDA POWER CO HELD A COMPETITIVE BID NORTHERN STATES POWER CO SOLD A TWOPART DEAL TOTALING 170 MILLION AND DEAN WITTER DISCOVER & CO INCREASED ITS OFFERING OF FLOATINGRATE DEBT TO 400 MILLION TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH MOST PRICES ENDING UNCHANGED MUNICIPALBOND BUYING TOOK A WHILE TO GET GOING BUT THERE WERE EVENTUALLY ENOUGH PURCHASES TO SIGNIFICANTLY BOOST PRICES OF SOME ACTIVELY TRADED ISSUES IN LATE TRADING YESTERDAY THE FLORIDA BOARD OF EDUCATION'S 5125 BONDS DUE 2022 WERE 5/8 STRONGER AT 96 1/2 YIELDING 536 THE NEW YORK STATE POWER AUTHORITY'S 525 BONDS DUE 2018 WERE UP 3/4 AT 98 1/4 YIELDING 534 ALTHOUGH MUNIS HAVE RISEN FOR FOUR SESSIONS WITHOUT A RESPITE THEY STILL HAVE PLENTY OF ROOM TO RISE ON BUYING THAT'S BEING DONE BEFORE HEAVY BOND CALLS NEXT MONTH MARKET PARTICIPANTS SAY THE BOND CALLS SEMIANNUAL COUPON PAYMENTS AND REDEMPTIONS DUE IN JANUARY ARE EXPECTED TO PUT AS MUCH AS 35 BILLION IN INVESTORS' POCKETS AND WITH FEDERAL INCOMETAX INCREASES IN PLACE MUCH OF THAT MONEY IS EXPECTED TO FLOW RIGHT BACK INTO THE TAXEXEMPT BOND MARKET THE DAY'S LARGEST ISSUE WAS NEW YORK CITY'S 6087 MILLION FISCAL 1994 SERIES E F AND G GENERAL OBLIGATION BONDS PRICED BY A PRUDENTIAL SECURITIES GROUP THE 4587 MILLION SERIES E AND F BONDS ARE PRICED TO YIELD FROM 370 IN 1995 TO 595 IN 201114 YIELDS FOR THE 150 MILLION SERIES G REFUNDING BONDS RANGE FROM 370 IN 1995 TO 598 IN 201517 ALTHOUGH THERE'S BEEN TALK ABOUT A LIKELY SLOWDOWN IN MUNICIPAL ISSUANCE THERE'S STILL NO SIGN OF ONE NEXT SESSION AT LEAST 900 MILLION MORE BONDS MAY DEBUT MORTGAGE SECURITIES PUT IN A STRONG PERFORMANCE YESTERDAY LARGELY HOLDING THEIR VALUE AS THE TREASURY MARKET POSTED SLIGHT DECLINES THE YIELD SPREAD BETWEEN CURRENT COUPON SECURITIES AND THE TREASURY'S 10YEAR NOTE WIDENED SLIGHTLY BUT GENERALLY HELD TO THE TIGHT LEVELS EVIDENT OVER THE PAST SEVERAL SESSIONS PART OF THE REASON FOR THE TIGHTENING IS THAT CURRENT COUPONS HAVE BEEN MORE IN DEMAND THAN CLASSES OF REAL ESTATE MORTGAGE INVESTMENT CONDUITS DEALERS SAY THE ONLY MORTGAGE SECURITIES TO SUFFER SOME THIS SESSION WERE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION PASSTHROUGHS WITH COUPONS OF 85 AND HIGHER THESE BONDS WERE HURT BY NEWS THAT THE VETERANS ADMINISTRATION WOULD BE ENCOURAGING VETERANS HOLDING MORTGAGES WITH RATES OF 85 AND HIGHER TO REFINANCE THAT WOULD TRIGGER PREPAYMENTS IN SECURITIES CURRENTLY NOT SUFFERING HIGH RATES OF PREPAYMENTS GINNIE MAE 85S FOR INSTANCE WERE ENDING DOWN 7/32 THIS SESSION COMPARED WITH A 2/32 GAIN IN GINNIE MAE 65S THE CURRENT COUPON GINNIES WERE TRADING AT 99 22/32 IN CONVENTIONAL SECURITIES FREDDIE MAC GOLD 65S FOR DECEMBER DELIVERY WERE ENDING DOWN 2/32 AT 99 27/32 AND FANNIE MAE 65S WERE ENDING DOWN 2/32 AT 99 20/32 THE 10YEAR NOTE WHICH IS USED AS A PRICING BENCHMARK FOR CURRENT COUPON MORTGAGES WAS ENDING DOWN 2/32 AT 100 15/32 FOR A YIELD OF 5685 9312080176 931208 NATIONAL INTERGROUP REDEMPTION DALLAS NATIONAL INTERGROUP INC SAID IT WILL REDEEM 88000 SHARES OF ITS 5 CUMULATIVE CONVERTIBLE PREFERRED STOCK ON JAN 15 HOLDERS OF THE SHARES WILL BE ENTITLED TO RECEIVE THE 125 QUARTERLY DIVIDEND TO BE PAID ON JAN 15 9312080175 931208 MARKETING & MEDIA NEWSPAPER PUBLISHERS SAY AD SALES ARE UP PREDICT BETTER RESULTS NEW YORK NEWSPAPER COMPANIES SAY ADVERTISING SALES ARE BEGINNING TO REBOUND EVEN IN TOUGH MARKETS SUCH AS NEW YORK AND BALTIMORE AND THEY CAUTIOUSLY PREDICT BETTER DAYS AHEAD AT THE ANNUAL PAINEWEBBER GROUP INC MEDIA CONFERENCE LANCE R PRIMIS PRESIDENT AND CHIEF OPERATING OFFICER OF NEW YORK TIMES CO SAID THAT ALTHOUGH AD VOLUME WILL BE FLAT FOR THE YEAR AS A WHOLE OCTOBER LINAGE ROSE 5 WITH NOVEMBER EVEN BETTER THE AD REBOUND IS STRONGER AT THE BOSTON GLOBE RECENTLY PURCHASED BY NEW YORK TIMES TOTAL AD SALES ARE EXPECTED TO RISE 10 IN THE FOURTH QUARTER EVEN THE LOS ANGELES TIMES TURNED IN INCREASED ADVERTISING LINAGE IN OCTOBER SAID RICHARD T SCHLOSBERG III SENIOR VICE PRESIDENT OF TIMES MIRROR CO REFLECTING THE FIRST SUBSTANTIAL PERIODOVERPERIOD INCREASE IN MORE THAN A YEAR THE COMPANY ALSO REPORTED ESPECIALLY GOOD INCREASES IN ADVERTISING REVENUE AT ITS EAST COAST PAPERS NEWSDAY IN NEW YORK AND THE BALTIMORE SUN IN OCTOBER ANALYSTS CAUTION THAT IT'S STILL TOO EARLY TO TELL IF THE GOOD FALL RESULTS ARE A REAL TREND NEWSPAPER COMPANIES ARE REPORTING SIGNS OF HOPE ON THE HORIZON BUT ONE MONTH DOESN'T MAKE A TREND SAID CHRISTOPHER DIXON MEDIA ANALYST FOR PAINEWEBBER THE FIRST QUARTER OF 1994 WILL BE VERY IMPORTANT IN DETERMINING WHETHER THIS IS A REAL TREND THE FACT THAT THE COMPANIES HAVE WORKED TO CUT COSTS AND FIND OTHER REALISTIC SOURCES OF REVENUE IS ALSO GOOD NEWS SAID MR DIXON MOST COMPANIES CITED ACQUISITIONS OR JOINT VENTURES IN NEW TECHNOLOGIES AMONG THEIR NEW REVENUE SOURCES MIAMIBASED KNIGHTRIDDER INC ANNOUNCED THAT IT AGREED TO ACQUIRE TECHNIMETRICS INC A NEW YORK COMPANY THAT SPECIALIZES IN FINANCIAL DATABASES JACK FONTAINE SENIOR VICE PRESIDENT OF KNIGHTRIDDER DECLINED TO GIVE THE VALUE OF THE DEAL BUT SAID TECHNIMETRICS WILL ADD ABOUT 135 MILLION IN REVENUE IN 1994 MR FONTAINE SAID THAT KNIGHTRIDDER'S BUSINESS INFORMATION SERVICES GROUP WHICH IS GROWING MUCH FASTER THAN THE NEWSPAPER BUSINESS WILL BE ABLE TO MAKE GOOD USE OF TECHNIMETRICS DATA ABOUT STOCKBROKERS AND INSTITUTIONAL INVESTORS FOR EXAMPLE 9312080174 931208 AMOCO DOESN'T SEE NATURALGAS PRICES FOLLOWING OIL LOWER CHICAGO AMOCO CORP THE LARGEST OWNER OF NATURALGAS RESERVES IN NORTH AMERICA DOESN'T EXPECT GAS PRICES TO BE HEAVILY INFLUENCED BY PLUNGING OIL PRICES THEODORE ECK CHIEF ECONOMIST SAID MR ECK CONCEDED THAT CURRENT GAS PRICES WHICH HAVE BEEN HOVERING AT LEVELS SLIGHTLY HIGHER THAN 2 PER THOUSAND CUBIC FEET OR SLIGHTLY BELOW THOSE OF A YEAR AGO AREN'T AS STRONG AS THE COMPANY HAD EXPECTED MR ECK HAD FORECAST THAT GAS PRICES THIS DECEMBER WOULD BE ABOUT 10 HIGHER THAN A YEAR AGO THE STRENGTH OF THE GAS MARKET IN THE FOURTH QUARTER OF 1992 BOOSTED AMOCO'S RESULTS THE COMPANY HAD NET INCOME OF 548 MILLION OR 110 A SHARE ON REVENUE OF 724 BILLION EARNINGS IN THAT YEAREARLIER QUARTER BENEFITED FROM A SURGE IN GAS PRICES FOLLOWING DAMAGE TO GULF COAST PRODUCTION AND REFINERY FACILITIES BY HURRICANE ANDREW NO SUCH SURGE IS EXPECTED THIS YEAR WARM WEATHER IN THE MIDWEST IS HELPING KEEP PRICES STEADY AND DEMAND LOW BUT IN A SWITCH FROM TRADITIONAL NATURALGAS MARKET THINKING HE SAID GAS PRICES AREN'T FOLLOWING OIL OVER A CLIFF YOU HAVE TO HAVE A BREAK WITH TRADITION EVENTUALLY HE SAID IN RECENT YEARS GAS PRICES HAVE FOLLOWED THE FORMULA OF MAINTAINING ROUGHLY A 1TO9 RATIO TO OIL PRICES BUT THE RECENT FALL OF CRUDE OIL TO BELOW 15 HAS SEEN THAT RATIO RISE IN THE DIRECTION OF 7TO1 YET SOME INDUSTRY OFFICIALS HAVE EXPECTED GAS PRICES TO FALL ENOUGH TO BRING BACK THE OLD RATIO I DON'T THINK IT WILL HAPPEN SAID MR ECK HIS REASONS INCLUDE THE PLETHORA OF NEW GASBURNING ELECTRIC PLANTS WHOSE FUELSWITCHING ABILITY IS LARGELY LIMITED TO LOWSULFUR CLEANBURNING DISTILLATE FUEL OIL WHICH IS PRICED ABOVE CRUDE ANOTHER FACTOR IS THE GROWING MARKET FOR TRADING NATURALGAS FUTURES CONTRACTS WHICH SOME INDUSTRY OFFICIALS BELIEVE IS ALSO HELPING TO PROP UP PRICES 9312080173 931208 WHO'S NEWS CST ENTERTAINMENT IMAGING INC CST ENTERTAINMENT IMAGING INC LOS ANGELES JODY SHAPIRO PRESIDENT AND CHIEF OPERATING OFFICER WAS ELECTED A DIRECTOR OF THIS DIGITALCOLORING SYSTEM CONCERN MR SHAPIRO 38 YEARS OLD INCREASES BOARD MEMBERSHIP TO EIGHT 9312080172 931208 WHO'S NEWS MUELLER INDUSTRIES INC MUELLER INDUSTRIES INC DALLAS WILLIAM D O'HAGAN 52 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS COPPERTUBE MANUFACTURER SUCCEEDING HARVEY L KARP 66 WHO WILL CONTINUE AS CHAIRMAN MR O'HAGAN JOINED MUELLER IN JUNE 1992 AND WAS NAMED PRESIDENT OF THE COMPANY LAST DECEMBER 9312080171 931208 REVIEW & OUTLOOK EDITORIAL FRENCH GALL IF A PERSON WALKS INTO A CROWDED ROOM WITH A BOMB STRAPPED TO HIS CHEST AND THREATENS TO PUSH THE DETONATOR THIS PUTS HIM IN A STRONG NEGOTIATING POSITION AT LEAST IN THE SHORT TERM BUT IF HIS IMMEDIATE DEMANDS ARE MET OTHER NATIONS MAY BE LESS WILLING TO GET IN A ROOM WITH HIM IN THE FUTURE AND SO WE COME TO FRANCE'S STRATEGY IN THE GATT ROUND ON MONDAY NIGHT FRANCE BROUGHT A BOMB TO THE GATT NEGOTIATIONS IT WAS A SERIES OF EXTRA DEMANDS DELIVERED AT THE 11TH HOUR REQUIRING MAJOR CONCESSIONS FROM BOTH THE US AND FRANCE'S EC PARTNERS FRANCE WANTS GUARANTEES SO THAT FARMERS FROM OTHER EC COUNTRIES RATHER THAN FRENCH FARMERS WILL BEAR THE BURDEN IF MORE LAND MUST BE TAKEN OUT OF PRODUCTION THAN CURRENTLY FORESEEN BY THE PROPOSED AGRICULTURAL REFORMS FRANCE WANTS THE EC TO ADOPT NEW AND TOUGHER TRADE WEAPONS FOR FUTURE COMMERCIAL SKIRMISHES FRANCE ALSO CALLED ON THE US TO ALLOW MORE GENEROUS ACCESS TO TEXTILES AND REITERATED ITS OPPOSITION TO INCREASED ACCESS FOR AMERICAN FILMS AND TV SHOWS IF FRANCE'S DEMANDS AREN'T MET THEN THE WHOLE PLACE BLOWS UP THE GATT ROUND FAILS THE EC IS THROWN INTO IMMEDIATE CRISIS TRANSATLANTIC RELATIONS GROW DISMAL THE CONTINENTAL RECESSION DEEPENS SO AMID ALL THE GRUMBLING GERMANY'S GUNTHER REXRODT SAID FRANCE WAS GOING TOO FAR FRANCE IS IN FACT WINNING SOME CONCESSIONS DIPLOMATS AT THE TALKS ARE SAID TO BE IMPRESSED WITH THE WAY FRENCH OFFICIALS ARE SCORING POINTS OFF THEIR THREE TARGETS THE US THEIR EC PARTNERS AND FRENCH PUBLIC OPINION ESSENTIALLY THE FRENCH NEGOTIATORS TRY TO WIN US CONCESSIONS AND WHERE THAT FAILS THEY TRY TO PERSUADE OTHER EUROPEAN NATIONS TO COMPENSATE THEM FOR ANY PAIN ALL THE WHILE SHOWING THEIR VOTERS THAT THEY ARE DRIVING A HARD BARGAIN SOME OF THE FRENCH POSITIONS HAVE MERIT IF BY THREATENING TO STOCKPILE TRADE WEAPONS THE FRENCH CAN INDUCE THE US TO DROP ITS OWN WEAPONS SUCH AS SUPER 301 THAT WOULD BE TO THE GOOD BUT WE WONDER WHAT THE LONGTERM IMPLICATIONS OF THIS STRATEGY ARE GOING TO BE IN THE AUDIOVISUAL SPHERE WHICH HAS EMERGED AS ONE OF THE STICKING POINTS THE FRENCH NEGOTIATORS ARE PAINTING THEMSELVES AS CULTURAL LUDDITES FRANCE IS SEEKING TO RESTRICT TRADE IN WHAT ARE TO EUROPE NEW AND GROWING MEDIA SECTORS PAYPERVIEW AND SATELLITE TV THIS IS PEOPLES' LEISURE TIME THE OFFICIAL FRENCH POSITION IS THAT EUROPEAN CITIZENS SHOULD BE RESTRICTED IN THE WAYS THEY CAN ENJOY THEMSELVES IN REALITY IT IS SIMPLY NOT GOING TO BE POSSIBLE AS THE NEGOTIATORS SEEM TO BELIEVE TO SHUT EUROPE OFF FROM THE INFORMATION REVOLUTION NOR CAN IT BE GOOD FOR FRENCH BUSINESS IF FRANCE OR EUROPE DEVELOPS A REPUTATION AS A NATION THAT OPPOSES TECHNOLOGICAL ADVANCE SIMPLY BECAUSE OF THE DISLOCATIONS THAT ACCOMPANY PROGRESS WE ALSO WONDER IF AS THE REXRODT STATEMENT INDICATES IT ISN'T BEGINNING TO SEEM THAT FRANCE IS TAKING ADVANTAGE OF GERMAN FRIENDSHIP THERE'S NO QUESTION OF A SERIOUS BREAK BETWEEN FRANCE AND GERMANY BUT IT CERTAINLY IS POSSIBLE THAT THESE SORTS OF CASES WEAR AWAY GERMAN PATIENCE THE FRENCH GOVERNMENT HAS ALSO BLOWN AN OPPORTUNITY TO SHIFT PUBLIC PERCEPTIONS OF GLOBAL TRADE FRANCE IS A SUPERB EXPORTING COUNTRY THE VAST MAJORITY OF ITS BUSINESSMEN SUPPORT GATT BUT THEY WERE VERY LATE TO RAISE THEIR VOICES AND THEY HAVE NOT PUT THEIR CASE TO THE FRENCH PEOPLE WITH ANY CLARITY THERE IS STILL SOCIAL PRESSURE AGAINST FREE TRADE AND THE FRENCH POSITIONS REINFORCE THE PREJUDICE THAT TRADE IS A ZEROSUM GAME IN WHICH NATIONS TRY TO PLUNDER EACH OTHER PEOPLE WHO BELIEVE THAT ARE GOING TO HAVE TROUBLE ADAPTING TO THE GLOBAL ECONOMY IT IS INTERESTING TO CONTRAST THIS ATTITUDE TO THE SPIRIT OF WONDERFUL COOPERATION THAT FRAMED THE DRIVE TO A EUROPEAN SINGLE MARKET MOST LIKELY THE REMAINING DISPUTES SUCH AS AUDIOVISUAL WILL BE RESOLVED FRANCE COULD BE ALLOWED TO CONTINUE SUBSIDIES TO PROTECT THE JOBS OF ITS TECHNICIANS IN RETURN THOSE SUBSIDIES COULD BE DECOUPLED FROM REVENUE DRAWN FROM AMERICAN IMPORTS AND THE FRENCH GOVERNMENT WOULD ALLOW ITS PEOPLE THE FREEDOM TO CHOOSE AMONG THE RANGE OF AUDIOVISUAL OPTIONS THAT ARE AVAILABLE TO CITIZENS OF OTHER FREE NATIONS FOR NOW FRANCE IS BEING DRAGGED KICKING AND SCREAMING INTO THE FUTURE IT'S QUITE A SCENE 9312080170 931208 JWP PLANS TO SELL TELECOM UNIT RYE BROOK NY JWP INC SAID IT SIGNED A LETTER OF INTENT TO SELL ITS JWP TELECOM INC UNIT TO MORTEK CORP AS PART OF A STRATEGY TO CONCENTRATE ON ITS CORE MECHANICAL AND ELECTRICAL CONTRACTING BUSINESS TERMS WEREN'T DISCLOSED JWP TELECOM IS A SUPPLIER OF VARIOUS TELECOMMUNICATIONS SYSTEMS AND SERVICES MORTEK A CLOSELY HELD COMPANY BASED IN FREDERICK MD SUPPLIES INTERACTIVE SOFTWARE PRODUCTS TO THE BABY BELL TELEPHONE COMPANIES AND OTHER CUSTOMERS JWP PROVIDES VARIOUS TECHNICAL SERVICES 9312080169 931208 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT JOHN F SMITH WAS NAMED GENERAL MANAGER OF THE COMPANY'S ALLISON TRANSMISSION DIVISION EFFECTIVE JAN 1 HE SUCCEEDS ROBERT M CLARK WHO'S RETIRING MR SMITH 42 YEARS OLD HAS BEEN VICE PRESIDENT OF PLANNING AT GM EUROPE SINCE 1989 PRIOR TO THAT APPOINTMENT HE HELD SEVERAL MANAGEMENT POSITIONS WITHIN THE GM FINANCIAL STAFF MR SMITH IS NO RELATION TO THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN F SMITH JR MR CLARK 62 BEGAN HIS GM CAREER IN 1952 HE WAS NAMED GENERAL MANAGER OF ALLISON TRANSMISSION IN 1987 9312080168 931208 MARK IV STOCK BUYBACK AMHERST NY MARK IV INDUSTRIES INC SAID ITS BOARD APPROVED THE REPURCHASE OF AS MANY AS FOUR MILLION COMMON SHARES OR 10 OF ITS COMMON STOCK OUTSTANDING A SPOKESWOMAN SAID THE BOARD SIMPLY WANTED THE OPTION TO PURCHASE SHARES FROM TIME TO TIME ON THE OPEN MARKET OR THROUGH PRIVATELY NEGOTIATED TRANSACTIONS AT PRICES IT CONSIDERS ATTRACTIVE MARK IV WHICH MAKES PRODUCTS AND SYSTEMS FOR POWER TRANSFER FLUID HANDLING MASS TRANSIT AND TRAFFIC CONTROL AND THE PROFESSIONAL AUDIO MARKETS HAS ABOUT 407 MILLION COMMON SHARES OUTSTANDING 9312080167 931208 WHO'S NEWS AES PLANS NEW UNIT TO FOCUS ON CHINA SHIFTS MANAGEMENT ARLINGTON VA AES CORP SAID IT WILL ESTABLISH A PUBLICLY TRADED COMPANY TO CONCENTRATE ON DEVELOPING POWER PROJECTS IN CHINA AND ALSO ANNOUNCED A MANAGEMENT REORGANIZATION REFLECTING THE GROWING IMPORTANCE OF THE INTERNATIONAL POWER MARKET THE INDEPENDENT POWER PRODUCER WHICH BUILDS POWER PLANTS AND SELLS ELECTRICITY TO ELECTRIC UTILITIES ALSO SAID IT WOULD ENACT A 3FOR2 STOCK SPLIT ON JAN 15 FOR SHAREHOLDERS OF RECORD THAT DAY AND THE COMPANY SAID IT WILL CHANGE TO A 3 ANNUAL STOCK DIVIDEND FROM QUARTERLY DIVIDEND OF 25 CENTS PAYABLE IN EITHER CASH OR STOCK THE CHANGE WILL SAVE ABOUT 20 MILLION TO 25 MILLION A YEAR TO BE USED FOR INVESTMENT OPPORTUNITIES AES SAID IT WILL FILE LATER THIS MONTH WITH THE SECURITIES AND EXCHANGE COMMISSION TO RAISE ABOUT 150 MILLION IN AN INITIAL PUBLIC OFFERING FOR ITS CHINA OPERATING COMPANY AES CHINA GENERATING CO AES SAID IT PLANS TO INVEST 50 MILLION AND RETAIN SIGNIFICANT STAKE IN THE NEW COMPANY AES'S DECISION TO ESTABLISH A BUSINESS SOLELY FOCUSED ON CHINA UNDERSCORES THE IMPORTANCE OF THE EAST ASIAN POWER GENERATION MARKET CHINA IS EXPECTED TO SPEND AS MUCH AS 350 BILLION ON POWER GENERATION IN THE NEXT TEN YEARS ACCORDING TO A US DEPARTMENT OF ENERGY REPORT AES ALSO SAID DENNIS W BAKKE PRESIDENT WILL ASSUME THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER EFFECTIVE JAN 1 MR BAKKE 48 YEARS OLD SUCCEEDS ROGER W SANT 62 WHO WILL REMAIN AS CHAIRMAN BOTH MR BAKKE AND MR SANT WILL CONTINUE AS MEMBERS OF THE OFFICE OF THE CEO ROGER F HEMPHILL JR 50 EXECUTIVE VICE PRESIDENT WILL CONCENTRATE ON THE CHINESE MARKET MR HEMPHILL A MEMBER OF THE OFFICE OF THE CEO WILL BE NAMED PRESIDENT AND CEO OF AES CHINA GENERATING COMPANY 9312080166 931208 WHO'S NEWS YANKEE ENERGY SYSTEM INC YANKEE ENERGY SYSTEM INC MERIDEN CONN PHILIP T ASHTON 59 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED CHAIRMAN OF THIS ENERGY CONCERN EFFECTIVE FEB 25 HE WILL SUCCEED WILLIAM O BAILEY 67 WHO IS RETIRING 9312080165 931208 UNITED AIR TRAFFIC ROSE 11 CHICAGO UNITED AIRLINES SAID ITS NOVEMBER TRAFFIC ROSE 11 TO 797 BILLION REVENUE PASSENGER MILES FROM 716 BILLION REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 669 FROM 625 FOR THE YEAR TO DATE THE UAL CORP UNIT SAID IT FLEW SLIGHTLY MORE THAN 93 BILLION REVENUE PASSENGER MILES UP 95 FROM 849 BILLION REVENUE PASSENGER MILES IN 1992 LOAD FACTOR FOR THAT PERIOD WAS 675 COMPARED WITH 678 9312080164 931208 AMERICAN FREIGHTWAYS RATES HARRISON ARK AMERICAN FREIGHTWAYS CORP SAID ITS SUBSIDIARY AMERICAN FREIGHTWAYS INC WILL RAISE SOME RATES JAN 1 ITS INTERSTATE COMMON CARRIER FREIGHT RATES WILL INCREASE 28 BUT MINIMUM CHARGES WON'T CHANGE THE MOTOR CARRIER TRANSPORT COMPANY SAID IT EXPECTS 1994 COSTS TO INCREASE MORE THAN 28 BUT IT WILL OFFSET ADDITIONAL COSTS THROUGH INCREASED OPERATING EFFICIENCIES 9312080163 931208 TECHNOLOGY ATHENA NEWDRUG FILING SOUTH SAN FRANCISCO CALIF ATHENA NEUROSCIENCES INC SAID IT SUBMITTED A NEWDRUG APPLICATION TO THE FOOD AND DRUG ADMINISTRATION FOR ZANAFLEX FOR TREATMENT OF MUSCLE SPASMS DUE TO MULTIPLE SCLEROSIS AND SPINAL CORD INJURY THE DRUG ATHENA'S FIRST OUT OF THE PIPELINE WAS LICENSED FROM SANDOZ PHARMA LTD ATHENA IS DEVELOPING TREATMENTS FOR NEUROLOGICAL DISORDERS 9312080162 931208 TEXAS JOURNAL SUDDENLY TEXAS HAS A GOOD SHOT TO WIN A PENNANT BY JEFF D OPDYKE THE SPRINGTIME CRY PLAY BALL IS MONTHS AWAY BUT ORGANIZERS OF THE NEW TEXASLOUISIANA PROFESSIONAL BASEBALL LEAGUE ARE ALREADY WARMING UP THE SIXTEAM MINOR LEAGUE ANNOUNCED LAST WEEK WILL BRING THE BOYS OF SUMMER TO BEAUMONT TYLER AMARILLO AND THE RIO GRANDE VALLEY AS WELL AS TO LAFAYETTE AND ALEXANDRIA IN LOUISIANA FOR AN 84GAME SEASON RUNNING FROM MEMORIAL DAY TO LABOR DAY BACKERS INCLUDE US REP JOHN BRYANT A DEMOCRAT FROM DALLAS AND CARL WESTCOTT CHAIRMAN AND CHIEF EXECUTIVE OF CARROLLTONBASED WESTCOTT COMMUNICATIONS INC AN OPERATOR OF SPECIALIZED SATELLITE TV NETWORKS UNLIKE TRADITIONAL MINOR LEAGUES THE TEXASLOUISIANA LEAGUE WON'T SERVE AS PART OF MAJOR LEAGUE BASEBALL'S FARM SYSTEM INSTEAD IT WILL BE ONE OF ONLY THREE INDEPENDENT MINOR LEAGUES IN THE COUNTRY ORGANIZERS CHOSE TEXAS BECAUSE OF THE RELATIVE SCARCITY OF MINORLEAGUE BALL IN THE STATE THOUGH HOME TO 17 MILLION PEOPLE TEXAS HAS ONLY THREE MINORLEAGUE TEAMS THE EL PASO DIABLOS SAN ANTONIO MISSIONS AND MIDLAND ANGELS ALL PART OF MINORLEAGUE BASEBALL'S TEXAS LEAGUE WHICH INCLUDES FIVE OUTOFSTATE TEAMS VIRGINIA AND NORTH CAROLINA WITH TWOTHIRDS THE POPULATION SUPPORT 15 MINORLEAGUE TEAMS THOUGH OF COURSE THEY DON'T HAVE THE ASTROS AND RANGERS THE TEXASLOUISIANA LEAGUE ALREADY LOOKING TO ADD TWO TEAMS HOPES TO RIDE THE SURGE IN MINORLEAGUE BASEBALL'S POPULARITY ATTENDANCE NATIONWIDE JUMPED TO 30 MILLION THIS YEAR FROM 175 MILLION IN 1984 BYRON PIERCE THE NEW LEAGUE'S PRESIDENT PREDICTS IT WILL DRAW ONE MILLION PEOPLE IN ITS FIRST SEASON THE CITIES THAT ARE GETTING MINORLEAGUE TEAMS MAY SEE MAJOR BENEFITS THE TEXAS LEAGUE REPORTS THAT ITS TEAMS GENERATE 4 MILLION TO 7 MILLION A YEAR FOR LOCAL ECONOMIES ONE CLOUD AMID THE SUNSHINE FIVE OF THE CITIES IN THE NEW LEAGUE PREVIOUSLY HAD TEAMS THAT PLAYED IN THE TEXAS LEAGUE THEY ULTIMATELY FAILED TO DRAW ENOUGH FANS TO SURVIVE 9312080161 931208 INTERNATIONAL MALAYSIAN ECONOMIC FORECAST KUALA LUMPUR THE MALAYSIAN INSTITUTE OF ECONOMIC RESEARCH EXPECTS THE COUNTRY'S ECONOMY TO CONTINUE EXPANDING BY 8 OR MORE ANNUALLY OVER THE NEXT TWO YEARS DRIVING THE EXPANSION OVER THE NEXT TWO YEARS THE INSTITUTE SAID WILL BE HEFTY SPENDING ON INFRASTRUCTURE PROJECTS AS WELL AS BUOYANT CONSUMER SPENDING THE INDEPENDENT THINK TANK PREDICTS THAT MALAYSIA'S INFLATIONADJUSTED GROSS DOMESTIC PRODUCT WILL GROW 82 NEXT YEAR AND 8 IN 1995 COMPARED WITH AN ESTIMATED 83 THIS YEAR 9312080160 931208 INTERNATIONAL PHILIPPINE INFLATION RATE MANILA THE PHILIPPINES THE PHILIPPINES' INFLATION RATE IN NOVEMBER REMAINED UNCHANGED AT 8 FROM OCTOBER BUT WAS LOWER THAN THE 85 REGISTERED IN NOVEMBER 1992 THE NATIONAL STATISTICS OFFICE REPORTED 9312080159 931208 LEISURE & ARTS NEW LABEL FOR NEW MUSIC BY ROXANE ORGILL WHEN BMG CLASSICS LAUNCHED A NEW LABEL DEVOTED TO CONTEMPORARY MUSIC CALLED CATALYST THE NEWS RAISED A FEW EYEBROWS DID THIS MEAN THAT A CONSERVATIVE COMPANY THE HOME OF RCA VICTOR WAS PUTTING MONEY INTO THE KIND OF DISSONANT RIGOROUSLY INTELLECTUAL MUSIC THAT REGULARLY CAUSES CONCERTGOERS TO HEAD FOR THE EXIT HARDLY CATALYST WILL SPECIALIZE IN LISTENABLE ACCESSIBLE CONTEMPORARY MUSIC REPORTS GUENTER HENSLER PRESIDENT OF BMG CLASSICS IF THAT SOUNDS LIKE AN OXYMORON REMEMBER PHILIP GLASS'S EINSTEIN ON THE BEACH THE FOURANDAHALF HOUR NOINTERMISSION OPERA THAT SOLD OUT THE METROPOLITAN OPERA HOUSE TWICE IN 1976 WHEN ITS COMPOSER WAS STILL A RELATIVE UNKNOWN THE ORIGINAL RECORDING ON CBS/SONY CLASSICAL IS STILL IN PRINT THIS YEAR HENRYK GORECKI SYMPHONY NO 3 AN ELEKTRA NONESUCH RECORDING WAS NO 1 ON THE BILLBOARD CLASSICAL CHART FOR 41 WEEKS NEW MUSIC WITH CROWD APPEAL IS OUT THERE THE TASK FOR CATALYST IS TO IDENTIFY IT PREFERABLY BEFORE ELEKTRA NONESUCH OR OTHER COMPANIES DO I KNOW IT WHEN I HEAR IT SAYS TIM PAGE CATALYST'S EXECUTIVE PRODUCER WHO IS ALSO A MUSIC CRITIC AND FORMER RADIO HOST AFTER ALL THOSE YEARS ON THE RADIO PLAYING THINGS PEOPLE CALLED UP ABOUT AND WROTE IN ABOUT IT'S ALMOST LIKE A MYSTICAL SENSE I KNEW THAT THE GORECKI WAS GOING TO BE A MONSTER I PLAYED THE RECORD THE FIRST RECORDING ON ERATO AGAIN AND AGAIN ON MY SHOW NEW OLD AND UNEXPECTED ON NEW YORK RADIO STATION WNYC I NAMED IT THE RECORD OF THE YEAR IN 1986 WHEN I WAS AT THE NEW YORK TIMES BEING A MUSIC CRITIC FIRST AT THE TIMES AND SINCE 1987 AT NEWSDAY AND NEW YORK NEWSDAY HAS GIVEN MR PAGE EXPERTISE THAT WILL COME IN HANDY AS A RECORD PRODUCER BUT HE'S THE FIRST TO ADMIT THAT WEARING THOSE TWO HATS PUTS HIM IN A TRICKY POSITION ETHICALLY SPEAKING IN THE EFFORT TO AVOID A CONFLICT OF INTEREST MR PAGE AND HIS NEWSDAY BOSS PHYLLIS SINGER HAVE DECIDED THAT HE WILL NOT REVIEW PERFORMANCES BY CATALYST ARTISTS OR WRITE FEATURES ON THEM HE WILL PROBABLY CONTINUE REVIEWING RECORDINGS SAID MS SINGER BUT NOT BY ANY OF THE LABELS HE'S WORKING FOR THAT WOULD MEAN RCA VICTOR RCA VICTOR RED SEAL AND DEUTSCHE HARMONIA MUNDI ALL PART OF BMG CLASSICS BUT REGARDLESS OF HOW HIS CRITICAL DUTIES ARE RESTRICTED THERE IS STILL THE APPEARANCE OF A CONFLICT WHICH CAN HURT A CRITIC'S CREDIBILITY I'M USED TO WEARING DIFFERENT KINDS OF HATS ANSWERS MR PAGE I JUST HAVE TO MAKE ABSOLUTELY SURE WHICH HAT I'VE GOT ON AT ANY GIVEN MOMENT THE HAT HE WORE AS HOST OF NEW OLD AND UNEXPECTED FOR 11 YEARS IS CERTAINLY IN EVIDENCE IN CATALYST'S INITIAL ECLECTIC SET OF FIVE COMPACT DISCS SONGS AND VIEWS OF THE MAGNETIC GARDEN BY ALVIN CURRAN PREVIOUSLY AVAILABLE ONLY ON A PRIVATE ITALIAN LABEL AND A RADIO FAVORITE IS A COLLAGE OF SOUNDS FROM SWALLOWS THE SEA FROGS AND BEES AS WELL AS THE SLIGHTLY MORE EXPECTED SYNTHESIZER CHIMES AND FLUGELHORN FROM MUSICA SACRA A PROFESSIONAL CHORUS COMES OF ETERNAL LIGHT AN ALBUM OF A CAPPELLA MUSIC BY MEREDITH MONK OLIVIER MESSIAEN ROBERT MORAN AND OTHERS THE ALBUM INCLUDES GYORGY LIGETI'S LUX AETERNA WHICH MANY WILL REMEMBER FROM THE FILM SCORE TO 2001 A SPACE ODYSSEY VIOLINIST MARIA BACHMANN MAKES HER DEBUT IN AN ALBUM OF VIRTUOSO VIOLINANDPIANO WORKS WITH PIANIST JON KLIBONOFF INCLUDING THE LYRICAL SONATA FOR VIOLIN AND PIANO THAT JOHN CORIGLIANO WROTE FOR HIS FATHER THE NEW YORK PHILHARMONIC'S CONCERTMASTER IN 1963 THE ALBUM'S TITLE WORK FRATRES MEANING BROTHERS OR COMRADES BY ARVO PART IS AN AUSTERE SET OF VARIATIONS ON A SIMPLE CHORDAL THEME CALLING TO MIND A BACH CHORALE ON GLASS ORGAN WORKS DONALD JOYCE PLAYS A RANGE OF PHILLIP GLASS'S ORGAN MUSIC FROM 1969 TO 1980 ON AN INSTRUMENT IN COLLEGEDALE TENN THAT MANY ORGANISTS REGARD AS A NATIONAL TREASURE FINALLY THE MUSIC OF SCOTSMAN JAMES MACMILLAN LITTLE KNOWN HERE IS COLLECTED ON VENI VENI EMMANUEL WHICH FEATURES PERCUSSIONIST EVELYN GLENNIE SO FAR THE MACMILLAN DISC IS CREATING THE BIGGEST BUZZ PRESUMABLY BECAUSE OF MS GLENNIE A VERITABLE SUPERSTAR IN ENGLAND SHE IS A STRIKING PERFORMER WHOSE PRODIGIOUS GIFTS WITH CHIMES CASTANETS AND TRIANGLE SEEM ALL THE MORE PRODIGIOUS IF YOU KNOW THAT SHE IS DEAF THE CD IS CLEVERLY PACKAGED TO LOOK LIKE AN EVELYN GLENNIE PRODUCT HER PICTURE AND NAME ARE ON THE COVER HER NAME IS ON THE SPINE NEVER MIND THAT THE SPECTACULAR PERCUSSION CONCERTO LASTS ONLY 26 MINUTES AND THAT FOR THE OTHER 41ANDAHALF MINUTES YOU GET THE SCOTTISH CHAMBER ORCHESTRA PLAYING OTHER MILDER MACMILLAN COMPOSITIONS IN ENGLAND THE CD MADE THE CLASSICAL CHART IN MUSIC WEEK MAGAZINE FOR NINE WEEKS THIS FALL AND IN THE US MADE THE TOP10 LIST IN THE DECEMBER ISSUE OF CLASSIC CD MAGAZINE CATALYST'S NEXT FOUR ALBUMS WILL CONSIST OF EARLY PIANO MUSIC OF JOHN CAGE A REISSUE OF SPIKE JONES' COMPOSITIONS THE FIRST GUY TO INCORPORATE NOISE INTO MUSIC AND HE DID IT WITH HUMOR SAYS MR PAGE TOBY TWINING MUSIC A GROUP THAT MR PAGE DESCRIBES AS THE SWINGLE SINGERS CROSSED WITH MEREDITH MONK AND WORKS BY FIVE YOUNG COMPOSERS INFECTED WITH THE HIV VIRUS WITH OFFERINGS LIKE THESE CATALYST SHOULD HAVE NO PROBLEM STANDING OUT IN THE CLASSICALMUSIC MARKET WHICH IS SATURATED WITH PRODUCT INCLUDING A RIDICULOUS AMOUNT OF DUPLICATION THE STANDARD REPERTOIRE HAS BEEN RECORDED TO DEATH NOTES MR PAGE CLASSICAL MUSIC'S ONLY CHANCE OF SURVIVAL HE BELIEVES LIES IN NEW MUSIC AND NEW APPROACHES TO OLD MUSIC SO WHILE CONDUCTOR ROGER NORRINGTON AND PIANIST MAURIZIO POLLINI LEND FRESH EARS TO BEETHOVEN'S SYMPHONIES AND CHOPIN'S PRELUDES RESPECTIVELY CATALYST WILL DO ITS PART TO KEEP THE NEWMUSIC FOUNTAIN FLOWING WITH THE LIKES OF MR CURRAN'S GARDEN THE SEA ROLLS BEES BUZZ THE COMPOSER SINGS WORDLESSLY AND BLOWS A BIT ON THE FLUGELHORN A JEW'S HARP TWANGS SOFTLY FROGS PEEP AND THE EFFECT IS ASTOUNDINGLY WEIRDLY BEAUTIFUL YOU MIGHT CALL IT NEW AGE WITH BRAINS SAYS MR PAGE IN THE ENTHUSIASTIC FRIENDLY VOICE ONE REMEMBERS SO WELL FROM HIS RADIO DAYS 9312080158 931208 CONTINENTAL AIRLINES TRAFFIC OFF HOUSTON CONTINENTAL AIRLINES SAID NOVEMBER TRAFFIC FELL 19 TO 32 BILLION REVENUE PASSENGER MILES FROM 326 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE CONTINENTAL SAID ITS NOVEMBER LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE TO 635 FROM 602 YEARTODATE TRAFFIC FELL 14 TO 39 BILLION REVENUE PASSENGER MILES FROM 3956 BILLION A YEAR EARLIER LOAD FACTOR SLID TO 633 FROM 636 9312080157 931208 ENSERCH RAISES '94 BUDGET DALLAS ENSERCH CORP SAID IT RAISED ITS 1994 CAPITAL SPENDING BUDGET TO 238 MILLION FROM THE 213 MILLION IT EXPECTS TO SPEND THIS YEAR THE ENERGY COMPANY SAID THE BUDGET IS ABOUT EVENLY DIVIDED BETWEEN ITS OIL AND GAS EXPLORATION AND PRODUCTION BUSINESS AND ITS NATURAL GAS TRANSMISSION AND DISTRIBUTION BUSINESSES THE COMPANY SAID IT WOULD MAKE ADJUSTMENTS TO THE BUDGET IF NEEDED WE ARE PREPARED TO ADJUST OUR EXPLORATION AND PRODUCTION SPENDING QUICKLY IN RESPONSE TO MATERIAL FLUCTUATIONS IN PRODUCT PRICES SAID DAVID BIEGLER CHAIRMAN OF ENSERCH 9312080156 931208 WHO'S NEWS LUKENS MEDICAL CORP LUKENS MEDICAL CORP RIO RANCHO NM DAVID L BELLITT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF DISPOSABLESURGICAL PRODUCTS EFFECTIVE JAN 1 MR BELLITT 45 YEARS OLD WAS MOST RECENTLY PRESIDENT OF AMSCO ENGINEERING SERVICE A DIVISION OF AMSCO INTERNATIONAL INC A PITTSBURGH MEDICALPRODUCTS CONCERN HE WILL SUCCEED JAMES A WIMBUSH 58 WHO WILL REMAIN CHAIRMAN 9312080155 931208 INTERNATIONAL WESTERN GERMANY'S GDP ROSE 05 IN THIRD PERIOD FRANKFURT WESTERN GERMANY'S GROSS DOMESTIC PRODUCT EDGED UPWARD IN THE THIRD QUARTER FOR THE SECOND PERIOD IN A ROW BUT HOPES OF A SUSTAINED RECOVERY WERE SPOILED BY ECONOMISTS' PREDICTIONS OF A RELAPSE IN THE MONTHS AHEAD THE FEDERAL STATISTICS OFFICE SAID WESTERN GERMAN GDP ROSE 05 FROM THE SECOND QUARTER BUT WAS DOWN 14 FROM THE YEAREARLIER PERIOD THE THIRD QUARTER RESULT WHICH WAS AS EXPECTED COPIED A 05 QUARTERONQUARTER RISE IN THE SECOND QUARTER SUPPORTING GOVERNMENT ASSURANCES THAT GERMANY'S RECOVERY WAS UNDER WAY GDP MEASURES AN ECONOMY'S TOTAL OUTPUT OF GOODS AND SERVICES BUT MOST ECONOMISTS EXPECT WESTERN GERMANY'S ECONOMY TO CONTRACT OR STAGNATE IN THE FOURTH AND FIRST QUARTERS BEFORE SHOWING SIGNS OF A MORE SUSTAINABLE RECOVERY LATER IN 1994 THE REASON THEY SAY IS THAT RECENT MILD GAINS IN DEMAND COME FROM AN EXTREMELY LOW LEVEL AFTER MORE THAN A YEAR OF DECLINES ECONOMISTS ARE PREDICTING THE WESTERN GERMAN ECONOMY COULD CONTRACT BY AS MUCH AS 2 FOR THE FULL 1993 YEAR FORECASTS FOR 1994 STILL RANGE FROM MILD GROWTH OR STAGNATION TO ANOTHER SMALL CONTRACTION 9312080154 931208 WHO'S NEWS WESTERN WASTE INDUSTRIES WESTERN WASTE INDUSTRIES LOS ANGELES RAMSEY G DILIBERO A DIRECTOR OF THIS WASTEMANAGEMENT CONCERN WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER MR DILIBERO 64 YEARS OLD MOST RECENTLY SERVED AS CHIEF EXECUTIVE OFFICER OF BROWNINGFERRIS INTERNATIONAL INC A SUBSIDIARY OF BROWNINGFERRIS INDUSTRIES INC 9312080153 931208 INTERNATIONAL JAPANESE BUSINESS GETS SET TO IMPORT RICE EVEN AS PLAN TO LIFT BAN DRAWS DISSENT BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHILE JAPANESE LEADERS BRACE FOR OPPOSITION TO THEIR PLAN TO LIFT A BAN ON RICE IMPORTS BUSINESSES HERE ARE MANEUVERING ABROAD TO EXPLOIT A NEW DOMESTIC MARKET PRIME MINISTER MORIHIRO HOSOKAWA AND OTHER TOP CABINET MINISTERS REVERSING A DECADESOLD JAPANESE POLICY SAID THE COUNTRY SHOULD ACCEPT A PROPOSAL FROM NEGOTIATORS IN THE SOCALLED URUGUAY ROUND OF WORLD TRADE TALKS TO IMPORT A SET AMOUNT OF RICE OVER THE NEXT SIX YEARS TOKYO HAD SAID LATE LAST MONTH THAT IT HAD AGREED WITH THE US ON A PLAN TO OPEN JAPAN TO RICE IMPORTS BEFORE THE CABINET OFFICIALLY ADOPTS THE PLAN FRIDAY HOWEVER MR HOSOKAWA MUST SETTLE DISSENT IN HIS FRAGILE GOVERNING ALLIANCE THE SOCIALISTS WHO FORM THE LARGEST BLOC IN THE SEVENPARTY RULING COALITION HAVE BEEN STAUNCH OPPONENTS OF RICE IMPORTS IF THEY DON'T SUPPORT THE IMPORT PLAN THEY COULD FURTHER HOBBLE THE GOVERNMENT AND POSSIBLY EVEN BRING IT DOWN STILL JAPANESE BUSINESSES AREN'T WAITING FOR THE POLITICAL DUST TO SETTLE BECAUSE THEY BELIEVE IT'S JUST A MATTER OF TIME BEFORE JAPAN ALLOWS RICE IMPORTS THEY ARE ALREADY EXPLORING WAYS TO CASH IN ESPECIALLY BY SETTING UP JOINT VENTURES OR INVESTMENT DEALS TO CULTIVATE RICE IN PADDIES FROM CHINA TO AUSTRALIA A SIMILAR TWIST OCCURRED A FEW YEARS AGO WHEN JAPAN EASED BARRIERS TO LUCRATIVE BEEF IMPORTS AMID GREAT PUBLICITY RATHER THAN PROVIDING A HUGE BOON TO EXPORTERS THE MOVE SET OFF A JAPANESE CORPORATE SHOPPING SPREE WITH BUSINESSES BUYING UP STAKES IN CATTLE RANCHES FROM THE US TO AUSTRALIA SEEING A SIMILAR OPPORTUNITY NOW MASAO MURAYAMA AN AGRIBUSINESSMAN FROM THE RURAL CITY OF OKAYAMA IN WESTERN JAPAN ALREADY IS PROVIDING RICECULTIVATION EXPERTISE TO A FARM IN NORTHERN CHINA IN A JOINT VENTURE THAT HE HOPES WILL GROW INTO A BASE TO EXPORT RICE TO JAPAN MR MURAYAMA SAYS HE AIMS TO PRODUCE TOP QUALITY CHINESEGROWN RICE THAT WOULD SELL FOR HALF THE GOING PRICE IN JAPAN THE 53YEAROLD RICE CHAINSTORE OPERATOR ALSO WILL TRAVEL TO AUSTRALIA NEXT YEAR TO LOOK AT THE PROSPECTS FOR RICE CULTIVATION THERE THOUGH THE AMOUNT OF RICE IMPORTED WILL REMAIN SMALL FOR SEVERAL YEARS JAPAN'S MAMMOTH TRADING COMPANIES ARE ALSO PLANNING TO EXPLOIT THE OPENING BY SERVING AS THE MIDDLEMEN HANDLING IMPORTS OVER THE YEARS VARIOUS JAPANESE TRADING COMPANIES HAVE APPROACHED AUSTRALIAN RICE GROWERS WITH A VARIETY OF WAYS TO COOPERATE SAYS SIMON SCHWEIGERT REPRESENTATIVE IN JAPAN FOR THE AUSTRALIAN RICE GROWERS COOPERATIVE THE DISCUSSIONS HAVE ALWAYS BEEN UNDER THE PROVISO THAT JAPAN OPEN ITS RICE MARKET SPOKESMEN FOR SEVERAL TRADING COMPANIES DECLINED TO COMMENT ON THEIR PLANS FOR RICE IMPORTS BUT A SPOKESMAN FOR ITOCHU CORP SAID THAT OVER THE LONG TERM THERE'S PLENTY OF OPPORTUNITY UNDER THE RICEIMPORT PLAN PROPOSED IN GENEVA THIS WEEK JAPAN WOULD ALLOW IMPORTS EQUALING 4 OF ITS RICE MARKET IN 1995 GRADUALLY INCREASING THAT AMOUNT TO 8 OVER THE NEXT SIX YEARS AFTER THAT JAPAN WOULD FORMALLY REPLACE ITS IMPORT BAN WITH TARIFFS MR HOSOKAWA AND OTHER OFFICIALS PORTRAYED THE ARRANGEMENT AS A VICTORY SAYING THEY HAD MANAGED TO AVOID A STRONGER PROPOSAL THAT WOULD HAVE FORCED THEM TO REPLACE THE BAN WITH TARIFFS IMMEDIATELY BUT IT'S A SYMBOLIC REVERSAL FOR A GOVERNMENT THAT LONG VOWED NEVER TO IMPORT A SINGLE GRAIN OF RICE 9312080152 931208 CHICAGO BOARD OF TRADE REVERTS TO 930 OPENING CHICAGO THE CHICAGO BOARD OF TRADE SAID THE OPENING OF TRADING IN AGRICULTURAL FUTURES AND OPTIONS CONTRACTS WILL RETURN TO 930 AM CENTRAL TIME ON MONDAY DEC 20 THE CBOT CHANGED ITS OPENING TIME IN JULY TO 830 AM ON THE HOPE THE MOVE WOULD ATTRACT MORE BUSINESS FROM EUROPEAN AND SOUTH AMERICAN USERS AND FUND INVESTMENT MANAGERS BUT CBOT MEMBERS THEN PETITIONED FOR A NOV 30 VOTE THAT RESULTED IN THE EXCHANGE REVERTING TO ITS OLD OPENING TIME THE CORRESPONDING MARKETS ON THE MIDAMERICA COMMODITY EXCHANGE WILL ALSO OPEN AT 930 AM CENTRAL TIME 9312080151 931208 WHO'S NEWS A&P NAMES CHRISTIAN HAUB TO SUCCEED WOOD AS PRESIDENT OF GROCERY RETAILER BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL MONTVALE NJ GREAT ATLANTIC & PACIFIC TEA CO NAMED CHRISTIAN WE HAUB PRESIDENT AND CHIEF OPERATING OFFICER PLACING HIM IN A HIGHLEVEL POSITION AT THE GROCERY COMPANY HIS FATHER CONTROLS MR HAUB 29 YEARS OLD SUCCEEDS JAMES WOOD AS PRESIDENT HE IS THE YOUNGEST SON OF ERIVAN HAUB THE PRINCIPAL OWNER OF TENGELMANN GROUP A GERMAN FOOD RETAILER WITH A 52 STAKE IN A&P MR WOOD 62 WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER THROUGH APRIL 30 1998 PREVIOUSLY MR WOOD'S CONTRACT HAD BEEN SCHEDULED TO EXPIRE APRIL 30 1995 ANALYSTS EXPRESSED SOME SURPRISE AT MR HAUB'S APPOINTMENT CITING HIS MINIMAL OPERATING EXPERIENCE AND RELATIVE YOUTH IT'S NOT A GREAT DISASTER OR A GREAT BOON FOR THE COMPANY IN A FINANCIAL SENSE SAID GARY GIBLEN AN ANALYST WITH PAINEWEBBER HE IS VERY YOUNG AND AT THIS POINT COMPLETELY UNDEREXPERIENCED AT THIS POINT HE DOESN'T HAVE THE STRENGTH TO BE A TURNAROUND AGENT A&P ONE OF THE LARGEST GROCERY RETAILERS IN NORTH AMERICA COULD USE A REVERSAL OF FORTUNE IN THE FISCAL YEAR ENDED LAST FEBRUARY GROSS SALES DECLINED TO 105 BILLION FROM 116 BILLION AND THE COMPANY REPORTED A LOSS OF 1895 MILLION OR 258 A SHARE INCLUDING ABOUT 164 MILLION IN CHARGES MOREOVER SALES AT STORES OPEN AT LEAST ONE YEAR HAVE CONTINUED TO SLIDE IN THE SECOND QUARTER ENDED SEPT 11 SAMESTORE SALES A KEY BAROMETER OF A RETAILER'S HEALTH SLIPPED 17 A&P HAD NARROWED SAMESTORE LOSSES TO JUST BELOW 1 IN THE FISCAL FIRST QUARTER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A&P FELL 375 CENTS TO 2775 DESPITE THE DIFFICULT FINANCIAL ENVIRONMENT MR HAUB DOESN'T BELIEVE WHOLESALE CHANGES ARE NECESSARY I THINK YOU HAVE TO IMPLEMENT CHANGES BUT THEY WILL ONLY COME OUT OVER A PERIOD OF TIME HE SAID DRASTIC CHANGES COULD UPSET THE COMPANY MORE IT'S IMPORTANT TO KNOW THE VISION OF THE COMPANY AND THEN BRING THE COMPANY IN THAT DIRECTION BY MAKING SMALL LITTLE CHANGES EVERY DAY AND EVERY WEEK MR HAUB HAS BEEN GROOMED TO EVENTUALLY RUN A GROCERYSTORE CHAIN SINCE HIS YOUTH WHILE GROWING UP THE YOUNGER MR HAUB WORKED EVENINGS AND WEEKENDS AT HIS FATHER'S GROCERY STORES IN GERMANY HE LATER UNDERWENT A TRAINING PROGRAM AT TENGELMANN RIDING DELIVERY TRUCKS SETTING UP PRODUCE WORKING IN THE BACK ROOM AND HANDLING CUSTOMER SERVICE I GREW UP IN A FAMILY OF FOOD RETAILERS MR HAUB SAID I'VE BEEN EXPOSED TO THE BUSINESS AS LONG AS I CAN THINK OF STILL ANALYSTS WONDER ABOUT MR HAUB'S LARGESCALE OPERATING EXPERIENCE AT AGE 27 HE JOINED A&P AS A VICE PRESIDENT ASSISTING IN DEVELOPMENT AND STRATEGIC PLANNING LATER HE ACQUIRED RESPONSIBILITY FOR REALESTATE PROJECTS BUT MR HAUB HAS LITTLE EXPERIENCE RUNNING A FARFLUNG AND COMPLEX RETAILING OPERATION THIS COMPANY HAS A TREMENDOUS AMOUNT OF POTENTIAL GOOD STORES AND STRONG BUYING POWER SAID DEBRA J LEVIN AN ANALYST WITH MORGAN STANLEY BUT THEY HAVEN'T FOCUSED THEIR EFFORTS LIKE OTHER GROCERY CHAINS HAVE THEY REALLY NEED SOMEBODY WITH EXTENSIVE OPERATING AND INDUSTRY EXPERIENCE AND DEDICATION TO CHANGE THINGS AND TURN IT AROUND MR HAUB DOESN'T REALLY OFFER THAT WHOLE PACKAGE MR HAUB DOES BRING ONE THING TO A&P STABILITY HIS APPOINTMENT SECURES A TRANSITION PROCESS THAT IS EXPECTED TO TAKE NEARLY FIVE YEARS MOREOVER MR HAUB'S INVOLVEMENT ENSURES THAT TENGELMANN WILL MORE THAN LIKELY REMAIN INVESTED IN A&P ANALYSTS SAID MR HAUB WHO HAS BEEN A DIRECTOR SINCE BEING HIRED BY A&P TWO YEARS AGO PREVIOUSLY WAS WITH THE INVESTMENT BANKING FIRM OF DILLON REED & CO NEW YORK HE IS AN MBA GRADUATE OF THE UNIVERSITY OF ECONOMICS IN VIENNA AUSTRIA HE ALSO IS A DIRECTOR OF TENGELMANN GROUP 9312080150 931208 LETTERS TO THE EDITOR ALZHEIMER'S DRUG NEEDS INDIVIDUALLY SET DOSE DR WILLIAM T ELLIOTT'S OCT 28 LETTER DEFENDING THE DECISION BY KAISER PERMANENTE NORTH CALIFORNIA TO NOT CARRY TACRINE THA COGNEX FOR THE TREATMENT OF ALZHEIMER'S DISEASE OFFERS SELFSERVING RHETORIC AND MISSTATES FACTS FAR FROM A BENEVOLENT DECISION FOR THE SAFETY OF PATIENTS THAT DR ELLIOTT DESCRIBES THE LOCAL KAISER DISAPPROVAL OF COGNEX HAS THE APPEARANCE OF A POLITICAL AND COSTCUTTING DECISION COGNEX WAS FIRST REPORTED BY MY COLLEAGUES AND I IN THE NEW ENGLAND JOURNAL OF MEDICINE IN 1986 CONTRARY TO DR ELLIOTT'S STATEMENT NONE OF OUR DATA OR CONCLUSIONS WERE DISPROVED DESPITE AN EXTREMELY EXTENSIVE AND INTIMIDATING INVESTIGATION BY THE FOOD AND DRUG ADMINISTRATION THE AGENCY SETTLED BY PUBLISHING A LETTER OF INNUENDO COGNEX WORKS BEST AT AN INDIVIDUALLY DETERMINED DOSE THAT IS SLIGHTLY BELOW SIGNS OF ACUTE TOXICITY AT THE PROPER DOSE THERE SHOULD BE NONE OF THE NAUSEA VOMITING DIARRHEA HEADACHES OR MUSCLE ACHES THAT DR ELLIOTT COMPLAINS OF INDEED PRESENCE OF SUCH SIGNS IMPLIES THAT THE DOSE IS TOO HIGH REGARDING THE FDAINDUCED LIVER SCARE COGNEX IS ASSOCIATED WITH RISES IN LIVER ENZYMES NOT LIVER DAMAGE IN 20 TO 30 OF CASES THESE RISES IN LIVER ENZYMES HAVE ALWAYS RETURNED TO NORMAL OFTEN PATIENTS WITH RISES IN LIVER ENZYMES WILL SHOW NO SIGNIFICANT ABNORMALITY UPON REINTRODUCTION TO COGNEX THE RESPONSE TO COGNEX IS VARIABLE OFTEN IT WILL APPEAR THAT THE PATIENT'S SYMPTOMS WERE TURNED BACK SIX MONTHS TO TWO YEARS IN THE MORE SERIOUSLY ILL ALZHEIMER PATIENTS THE DEGREE OF COGNITIVE IMPROVEMENT CAN BE SUBTLE THE PATIENT ON COGNEX MAY NOW ASSIST IN FEEDING CLOTHING AND BATHING TO A CARETAKER THIS IS OFTEN THE DIFFERENCE BETWEEN HOME CARE AND PAYING 40000 A YEAR FOR A NURSING HOME 9312080149 931208 WHO'S NEWS NATIONAL COMPUTER SYSTEM INC NATIONAL COMPUTER SYSTEM INC MINNEAPOLIS JEAN B KEFFELER WAS ELECTED TO THE BOARD OF THIS INFORMATION SERVICES CONCERN MS KEFFELER IS THE VICE CHAIR OF THE UNIVERSITY OF MINNESOTA BOARD OF REGENTS AND PRESIDENT OF KEFFELER CO A MANAGEMENT CONSULTING FIRM THE ELECTION EXPANDS THE BOARD TO 10 MEMBERS 9312080148 931208 INTERACTIVE NETWORK SIGNS PACT CULVER CITY CALIF INTERACTIVE NETWORK INC SAID IT SIGNED AN AGREEMENT WITH THE GAME SHOW CHANNEL TO JOINTLY PRODUCE INTERACTIVE PROGRAMMING TERMS WEREN'T DISCLOSED SCHEDULED TO BEGIN BROADCASTING IN 1994 THE GAME SHOW CHANNEL IS A PARTNERSHIP BETWEEN SONY PICTURES ENTERTAINMENT TELEVISION GROUP UNITED VIDEO CABLE VENTURES LP AND MARK GOODSON PRODUCTIONS INTERACTIVE NETWORK OPERATES A SUBSCRIPTION ENTERTAINMENTTELEVISION SYSTEM 9312080147 931208 RHYME SOARS WHILE REASON PALES AFTER ONE TOO MANY BRITISH ALES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON HE'S NOT EXACTLY DYLAN THOMAS OR SCOTT F FITZGERALD BUT BERT STEVENS HAS A WAY WITH WORDS AFTER A FEW PINTS THE 80YEAROLD MR STEVENS WHO TOOK UP WRITING AFTER A CAREER AS A PRECISION GRINDER LAST WEEK WON BRITAIN'S FIRST ANNUAL CONTEST FOR DRUNKEN POETS MR STEVENS'S BUBBLY VERSE TOPPED 1000 OTHER INTOXICATING ENTRIES EACH WRITTEN BY AN AUTHOR WHO HAD CONSUMED 60 OUNCES OF BEER OR SIX GLASSES OF WINE OR LIQUOR MR STEVENS WHO DRAFTED HIS PRIZEWINNING ENTRY AFTER KNOCKING BACK A FEW AT THE HALF MOON PUB IN CRAWLEY SOUTH OF LONDON IS POSITIVELY TIPSY I'M WHAT YOU CALL AN OVERNIGHT SUCCESS AT 80 SAYS THE BOOZY POET ALL THIS NEWFOUND FAME HAS GONE TO MY HEAD SUBMISSIONS POURED IN FROM BRITAIN AND IRELAND AND SOME BOMBED BARDS SENT ENTRIES FROM THE US AND NEW ZEALAND ONE STUDENT FROM BELFAST SENT IN A CRUMPLED ENTRY WITH BEER AND GRASS STAINS THE CONTEST IS A BIT OF A PROTEST AT THE BORINGNESS OF POETRY TODAY SAYS COLM O'ROURKE OWNER OF LITTLE PUB CO THE CONTEST'S SPONSOR THIS IS TO BRING BACK JOLLY DRINKING POETRY THAT REALLY RHYMES A FEW SOBER POETS CRASHED THE PARTY BUT MR O'ROURKE SAYS THEIR ENTRIES WERE EASY TO SPOT THOSE WERE THE ONES THAT DIDN'T RHYME AND WERE DEPRESSING BORING AND SANCTIMONIOUS HE SAYS THE JUDGES FROM A BIRMINGHAM LITERARY CLUB CONSIDERED ONLY POEMS WITH DRINKING THEMES MR STEVENS'S DESCRIBED A TIME TRAVELER WHO OFFERS HORSERACING TIPS TO BARFLIES AT MURPHY'S SALOON TO WIT STOOD WIDEEYED WITH WONDER A SIGHT TO BEHOLD SOME CONTESTANTS TOOK DEFEAT BADLY I'VE WORKED HARD AT IT SAYS LIAM O'MEARA AN OUTOFWORK ACCOUNTANT FROM DUBLIN WHO FILED 27 ENTRIES I'VE IMBIBED BY THE RULES HE BLAMES HIS POOR SHOWING ON A HANDICAP HE WAS DRINKING GUINNESS WHICH HE THINKS IS MUCH STRONGER THAN MR STEVENS'S MUSE JOHN BULL BITTER LITTLE PUB CO GAVE MR STEVENS 1500 AND A 288PINT BARREL OF BEER BUT THE POET COULDN'T FIT THE BARREL IN HIS CAR AND BESIDES HE SAYS EVEN MY CAPACITY IS RATHER TAKEN OVER BY 288 PINTS 9312080146 931208 FINANCING BUSINESS WESTCOAST ENERGY INC WESTCOAST ENERGY INC VANCOUVER BRITISH COLUMBIA SAID IT SOLD 100 MILLION CANADIAN DOLLARS 756 MILLION PRINCIPAL AMOUNT OF DEBENTURES TO A CANADIAN UNDERWRITING GROUP LED BY RBC DOMINION SECURITIES INC FOR NET PROCEEDS OF C98950000 THE VANCOUVER PIPELINE COMPANY SAID IT PLANS TO USE THE PROCEEDS TO REPAY COMMERCIAL PAPER IT ISSUED TO FINANCE AN EXPANSION OF ITS GASPIPELINE SYSTEM WESTCOAST SAID THE 830 DEBENTURES MATURE DEC 30 2013 IT SAID THE ISSUE IS SUBJECT TO CANADIAN PROVINCIAL SECURITIES COMMISSION APPROVALS 9312080145 931208 WHO'S NEWS SAFECARD SERVICES INC SAFECARD SERVICES INC CHEYENNE WYO PAUL G KAHN 49 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CREDITCARD SERVICE COMPANY FILLING POSTS THAT HAVE BEEN VACANT FOR ABOUT A YEAR MR KAHN FORMERLY WAS PRESIDENT AND CEO OF AT&T UNIVERSAL CARD SERVICES A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO PETER HALMOS AND STEVEN J HALMOS SAFECARD'S FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER RESPECTIVELY LEFT THE COMPANY LAST DECEMBER FOLLOWING DISPUTES WITH THE SAFECARD BOARD 9312080144 931208 INTERNATIONAL JAPANESE IN TRADE TALKS WITH US YIELD A BIT ON NUMERICAL BENCHMARKS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE OFFICIALS PROPOSED A SET OF NUMERICAL BENCHMARKS TO HELP MEASURE THE OPENNESS OF THE NATION'S TELECOMMUNICATIONS MARKET LEADING US NEGOTIATORS TO SAY THAT THEY ARE MAKING SOME HEADWAY IN TALKS AIMED AT CUTTING JAPAN'S HUGE TRADE SURPLUS ALTHOUGH JAPANESE OFFICIALS SAID THE NUMBERS COULD BE USED ONLY TO GAUGE ONGOING PROGRESS NOT AS A TARGET FOR THE FUTURE THE PROPOSAL APPEARS TO BRIDGE SOME OF THE PHILOSOPHICAL GAP BETWEEN THE TWO GOVERNMENTS JAPAN HAS LONG ARGUED THAT THE INCLUSION OF NUMBERS IN TELECOMMUNICATIONS OR ANY OTHER TRADE SECTOR WOULD LEAD TOWARD MANAGED TRADE WE THINK IT'S A POSITIVE SIGN THAT JAPAN'S PROPOSAL INCLUDED QUANTITATIVE CRITERIA SAID A US OFFICIAL INVOLVED IN THE TALKS IN PREVIOUS MONTHS AMERICAN OFFICIALS HAD CRITICIZED JAPAN FOR FOOTDRAGGING IN THE BILATERAL TRADE TALKS TO BE SURE A GAP STILL EXISTS BETWEEN THE TWO SIDES THE AMERICAN NEGOTIATOR BRIEFING REPORTERS ON THE CONDITION OF ANONYMITY ADDED THAT THERE REMAINS A CLEAR DIFFERENCE IN THE TYPES OF CRITERIA THAT THE TWO SIDES ARE DISCUSSING AN OFFICIAL AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY OR MITI SAID JAPAN SPECIFICALLY PROPOSED SUCH MEASURES AS TRACKING THE PERCENTAGE OF GOVERNMENT CONTRACTS THAT ARE AWARDED UNDER COMPETITIVE BIDDING PROCEDURES HE SAID JAPAN DIDN'T SUGGEST MEASURING FACTORS SUCH AS SALES OR MARKET SHARE OUR PROPOSAL MAY NOT NECESSARILY BE THE SAME AS WHAT SOME PEOPLE ON THE US SIDE HAVE IN MIND THE MITI OFFICIAL SAID BUT WE ARE ANSWERING THE REQUEST FROM THE US SIDE FOR SOME KIND OF MEASURABLE PROGRESS IN FOREIGN PROCUREMENT YESTERDAY'S FRAMEWORK TALKS COVERING JAPAN'S TELECOMMUNICATIONS MARKET ARE PART OF A BROADER SET OF NEGOTIATIONS AIMED AT REDUCING THE TRADE IMBALANCE IN SPECIFIC SECTORS AND IN TOTAL THE TWO GOVERNMENTS ARE HOPING TO CONCLUDE AN AGREEMENT IN TELECOMMUNICATIONS AND IN OTHER SECTORS BY FEB 11 WHEN PRIME MINISTER MORIHIRO HOSOKAWA IS TO MEET WITH PRESIDENT CLINTON IN WASHINGTON IN ADDITION TO TELECOMMUNICATIONS NEGOTIATORS WILL MEET LATER THIS MONTH TO DISCUSS GOVERNMENT PROCUREMENT OF MEDICAL EQUIPMENT COMPUTERS AND SUPERCOMPUTERS THE MITI OFFICIAL SAID JAPAN HAD ALSO PROPOSED SOME FORM OF NUMERICAL MEASURES IN NEGOTIATIONS OVER THE AUTO INDUSTRY IN OCTOBER HE SAID HE COULDN'T SAY WHETHER JAPAN WOULD PROPOSE BENCHMARKS IN ALL SECTORS JAPAN IS HOLDING FAST HOWEVER ON ITS OBJECTION TO ANY AGREEMENT THAT TRIES TO SET A FUTURE OUTCOME AN APPROACH MANY CLINTON ADMINISTRATION OFFICIALS HAVE ENDORSED WE HAVE ADMITTED THAT SOME CRITERIA CAN BE USED THE MITI OFFICIAL SAID BUT CERTAINLY WE ARE NOT PROPOSING ANYTHING THAT WILL DESCRIBE THE FUTURE THE US HOWEVER MAY HAVE A LARGER HEADACHE TO RESOLVE UNDER THE JULY FRAMEWORK AGREEMENT IN PRINCIPLE THE TWO SIDES AGREED TO THE BASIC PRINCIPLE OF TWOWAY DIALOGUE A PHRASE THE JAPANESE HAVE INTERPRETED AS A LICENSE TO PUSH FOR CHANGES IN THE US PROCUREMENT SYSTEM FOR INSTANCE THE MITI OFFICIAL ARGUES THAT UNDER STATISTICS COLLECTED FOR THE GENERAL AGREEMENT ON TARIFFS AND TRADE A WORLD TRADE BODY JAPAN'S GOVERNMENT TELECOMMUNICATIONS PROCUREMENT IS FAR MORE OPEN THAN THAT OF THE US SINCE JULY IT'S BEEN OUR BELIEF THAT THE US WOULD ADDRESS ATTEMPTS TO CHANGE THEIR SYSTEM SAID THE OFFICIAL IT'S SURPRISING TO US THEY'RE SO RESISTANT TO HAVING THEIR SYSTEM REVIEWED THEY'RE SORT OF LOSING THE MORAL HIGH GROUND IN THE ARGUMENT THE US HOWEVER INSISTS THAT JAPAN'S REQUESTS ARE OUT OF LINE PROPOSALS TO CHANGE THE US PROCUREMENT SYSTEM ARE INCONSISTENT WITH THE FRAMEWORK SAID THE US TRADE OFFICIAL WE THINK OUR COUNTERPARTS ARE USING THE MEDIA TO CONFUSE THE SITUATION 9312080143 931208 REVIEW & OUTLOOK EDITORIAL ASIDES CUOMO KICKS NAFTA WHILE GOVERNORS THROUGHOUT THE REVIVING RUST BELT AND THRIVING SOUTHWEST ENDORSED NAFTA NEW YORK'S GOVERNOR MARIO CUOMO DID NOT INDEED THIS WEEK HE BLAMED THE ANTICIPATION OF THE PASSAGE OF NAFTA FOR SOME OF LAST MONTH'S INCREASE IN HIS STATE'S UNEMPLOYMENT NUMBERS WE GUESS THIS HAS TO MEAN JOBS RELOCATING TO MEXICO OR CANADA NOT SOME COMPETING US STATE AMONG THE COMPANIES REDUCING JOBS IN NEW YORK A UNION OFFICIAL WHO DIDN'T BLAME NAFTA LISTED MILLER BREWING GRUMMAN UNITED AIRLINES MARTIN MARIETTA QUALITY INN AND CITIBANK OUR OWN VIEW WOULD BE THAT DESPITE THE WISHES OF FAMILY MEMBERS AND FRIENDS MR CUOMO IS PREPARING FOR A REELECTION RACE AND THE BLAME FOR SOME NEW YORK JOB DEPARTURES WILL BE LAID OFF ON NAFTA RATHER THAN THE STATE'S HIGH TAXES 9312080141 931208 FINANCING BUSINESS EARL SCHEIB INC EARL SCHEIB INC BEVERLY HILLS CALIF SAID IT WILL SUSPEND ITS 45CENTSASHARE DIVIDEND BECAUSE OF A QUARTERLY LOSS A SPOKESWOMAN SAID THE COMPANY WILL CONSIDER REINSTATING THE DIVIDEND AT ITS NEXT QUARTERLY MEETING MARCH 9 THE OPERATOR OF A CHAIN OF AUTOPAINT SHOPS SAID IT HAD A LOSS OF 48000 OR ONE CENT A SHARE FOR ITS SECOND QUARTER ENDED OCT 31 COMPARED WITH YEAREARLIER EARNINGS OF 760000 OR 17 CENTS A SHARE THE COMPANY REPORTED REVENUE FOR THE QUARTER FELL 13 TO 133 MILLION FROM 153 MILLION A YEAR EARLIER 9312080140 931208 FINANCING BUSINESS THERMO CARDIOSYSTEMS INC THERMO CARDIOSYSTEMS INC WALTHAM MASS SAID IT WILL SELL IN EUROPE AT PAR 30 MILLION OF NONINTERESTBEARING CONVERTIBLE SUBORDINATED DEBENTURES DUE 1997 THE DEBENTURES WILL BE CONVERTIBLE INTO SHARES OF COMMON STOCK AT A PRICE OF 2174 WHICH REPRESENTS AN 8 CONVERSION PREMIUM OVER THE STOCK'S CLOSING PRICE MONDAY THE COMPANY ALSO GRANTED TO THE MANAGERS OF THE OFFERING AN OVERALLOTMENT OPTION TO PURCHASE AN ADDITIONAL 3 MILLION PRINCIPAL AMOUNT OF DEBENTURES THE TRANSACTION IS EXPECTED TO CLOSE JAN 5 THERMO CARDIOSYSTEMS A PUBLICLY TRADED SUBSIDIARY OF THERMEDICS INC A UNIT OF THERMO ELECTRON CORP DEVELOPS IMPLANTABLE VENTRICULARASSIST DEVICES 9312080139 931208 CAMPO ELECTRONICS SALES RISE NEW ORLEANS CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC SAID NOVEMBER SALES MORE THAN DOUBLED TO 175 MILLION FROM A YEAREARLIER 76 MILLION THE SPECIALTY RETAILER SAID SALES IN STORES OPEN A YEAR OR MORE ROSE 33 TO 96 MILLION FROM 72 MILLION SALES IN THE FIRST QUARTER ENDED NOV 30 ALSO MORE THAN DOUBLED TO 433 MILLION FROM 205 MILLION COMPARABLESTORE SALES ROSE 26 TO 242 MILLION FROM 192 MILLION THE COMPANY ATTRIBUTED THE IMPROVEMENTS TO THE OPENING OF STORES AND TO THE ACQUISITION OF SHREVEPORT REFRIGERATION INC IN JULY 9312080138 931208 MARKETING & MEDIA ADVERTISING INTERPUBLIC GROUP SHOPS TO HANDLE GM'S BILLIONDOLLAR MEDIA BUYING BY KEVIN GOLDMAN IT'S BEGINNING TO LOOK A LOT LIKE CHRISTMAS AT INTERPUBLIC GROUP GENERAL MOTORS IS EXPECTED TO ANNOUNCE TODAY THAT IT IS CONSOLIDATING ITS NEARLY 1 BILLION MEDIABUYING ASSIGNMENT AT LINTASWORLDWIDE AND MCCANNERICKSON TWO ADVERTISING AGENCIES OWNED BY INTERPUBLIC MEDIA BUYING NOW IS SPLIT IN A COMPLEX MANNER AMONG AT LEAST FOUR AD AGENCIES WITH OTHER TIES TO GENERAL MOTORS LINTAS MCCANN LEO BURNETT AND D'ARCY MASIUS BENTON & BOWLES LINTAS AND MCCANN WILL FORM A THIRD OPERATION WITH EMPLOYEES OF BOTH AGENCIES TO HANDLE THE MASSIVE ASSIGNMENT THE NEW AGENCY WILL BE THE ADMINISTRATIVE RESPONSIBILITY OF LINTASCAMPBELLEWALD BASED IN DETROIT INDUSTRY OFFICIALS SAY THE GM NATIONAL TELEVISIONBUYING ASSIGNMENT IS VALUED AT OVER 500 MILLION AND PRINT BUYING IS ABOUT 300 MILLION MEDIA BUYING MAY NOT BE AS GLAMOROUS AS CREATING AN AD CAMPAIGN BUT THE ASSIGNMENT IS AS CRITICAL IT IS TESTIMONY TO AN AGENCY'S STRATEGIC ABILITY TO NEGOTIATE THE BEST PRICE AND TO MOST EFFECTIVELY USE THE ARRAY OF TELEVISION AND PRINT CHOICES JUST AS THEY ARE PITTED AGAINST EACH OTHER IN CREATIVE REVIEWS ADVERTISING AGENCIES COMPETE FOR MEDIA BUYING AND LOSING A MEDIABUY ASSIGNMENT CREATES AS LARGE A TREMOR AS LOSING A CREATIVE ASSIGNMENT FOR INSTANCE IT WAS BIG NEWS ON MADISON AVENUE EARLIER THIS WEEK WHEN JOHNSON & JOHNSON MOVED ITS 200 MILLION NETWORK TELEVISION MEDIA ACCOUNT TO MCCANN FROM YOUNG & RUBICAM INTERPUBLIC EXECUTIVES COULDN'T BE REACHED BECAUSE THEY WERE IN DAYLONG PLANNING SESSIONS AND PREPARING FOR THIS MORNING'S PRESENTATION AT THE PAINEWEBBER MEDIA CONFERENCE LINTAS AND MCCANN DECLINED TO COMMENT A GM SPOKESMAN SAYS WE ARE EXPECTING TO ANNOUNCE SOMETHING ON MEDIA BUYING SHORTLY BUT I CAN'T CONFIRM OR DENY ANY DETAILS THAT ARE COMING OUT OF SPECULATION GENERAL MOTORS WILL BECOME THE SECOND MAJOR AUTO MAKER THIS YEAR TO CENTRALIZE MEDIA BUYING IN MAY CHRYSLER SELECTED OMNICOM GROUP'S BBDO NORTH AMERICA TO HANDLE ITS 400 MILLION MEDIA BUYING AND PLANNING ASSIGNMENT PREVIOUSLY HANDLED BY THREE AGENCIES BOZELL CONTINUES TO DEVELOP CHRYSLER'S ADS AS DOES BBDO BUT THE CRITICAL ASSIGNMENT OF PLACING THE ADS IS HANDLED BY A NEW DIVISION PENTACOM FORMED BY BBDO AFTER IT RECEIVED THE NOD AT THE TIME CHRYSLER'S VICE PRESIDENT FOR MARKETING JOHN B DAMOOSE SAID THAT THE NO 3 AUTO MAKER MADE THE MOVE TO REDUCE TREMENDOUS WASTE AND INEFFICIENCY IN OUR MEDIA BUYING BY HAVING ONE AGENCY HANDLE THE ASSIGNMENT GENERAL MOTORS STANDS TO SAVE MONEY BY REDUCING ADMINSTRATIVE COSTS AND PAPERWORK REDUNDANCIES ALSO GM WOULD BENEFIT FROM A SINGLE ALLPOWERFUL SHOP WITH THE FINANCIAL CLOUT TO NEGOTIATE LOWER AD RATES FROM TELEVISION NETWORKS MAGAZINES AND NEWSPAPERS PHILIP GUARASCIO MARKETING AND ADVERTISING GENERAL MANAGER FOR GM'S NORTH AMERICAN OPERATIONS WAS UNAVAILABLE YESTERDAY BUT HE TOLD ADWEEK A TRADE PUBLICATION IN AUGUST THAT WHATEVER WE END UP DOING IT WILL BE BASED ON STRATEGY AND BEING MORE EFFICIENT NOT JUST ON CUTTING COSTS THE NEWS COULDN'T COME AT A BETTER TIME FOR LINTAS WHICH MADISON AVENUE HAS ALL BUT COUNTED OUT AS A MAJOR AGENCY SINCE IT LOST TWO BIG ACCOUNTS THIS YEAR THE 61 MILLION DIET COKE ACCOUNT AND THE CREATIVE ASSIGNMENT FOR THE 80 MILLION PERSONALCOMPUTER ACCOUNT FROM INTERNATIONAL BUSINESS MACHINES IT RETAINED THE MEDIABUYING ASSIGNMENT FOR THE IBM ACCOUNT LAST YEAR LINTAS ALSO LOST THE 60 MILLION MASTERCARD ACCOUNT THE GM ASSIGNMENT IS A WELCOME SHOT IN THE ARM SOME PEOPLE CLOSE TO THE AGENCY SAID LINTAS PITCHED ITS HEART OUT THERE ISN'T EXPECTED TO BE A CHANGE IN CREATIVE ASSIGNMENTS AS A RESULT OF THE MEDIABUYING CONSOLIDATION LINTAS HANDLES CHEVROLET ADS MCCANN DOES BUICK AND GMC TRUCKS AND GM'S CREDIT CARD WITH MASTERCARD BURNETT DOES OLDSMOBILE ADS AND DMB&B HANDLES CADILLAC AND PONITAC GM HAS OTHER AGENCIES INCLUDING AYER WHICH HANDLES THE CORPORATE IMAGE ASSIGNMENT AND HAL RINEY & PARTNERS WHICH DOES THE SATURN ADS GM IS EXPECTED TO ANNOUNCE DETAILS THIS MORNING BUT THE NEWS IS CLEARLY FAVORABLE FOR INTERPUBLIC THE MORE MEDIABUYING ACCOUNTS AN AGENCY WINS THE MORE COMPETITIVE IT CAN BE PART OF AN AGENCY'S ATTRACTIVENESS IS THE CLOUT IT HAS WITH THE MEDIA INCLUDING TELEVISION MAGAZINES AND NEWSPAPERS AND THE AGENCY THAT HANDLES THE MEDIA BUYING IS PRIVY TO ALL DECISIONS MADE FROM A MARKETING STANDPOINT SO IT GENERALLY IS AWARE OF WHAT THE AGENCY DOING THE CREATIVE WORK IS UP TO THAT'S VERY HELPFUL WHEN CONDUCTING NEWBUSINESS PITCHES A 90SECOND TELEVISION SPOT STARRING ACTOR MEL GIBSON THAT URGES VIEWERS TO PROTECT YOUR RIGHT TO USE VITAMINS AND SUPPLEMENTS IS DRAWING FIRE FROM CONSUMER ACTIVISTS WHO CALL IT A CRASS LOBBYING PITCH FROM THE DIETARYSUPPLEMENT INDUSTRY THE SPOT WHICH HAS AIRED AS A FREE PUBLICSERVICE ANNOUNCEMENT AND AS A PAID AD ON CABLE AND LOCAL TELEVISION STATIONS SHOWS A NIGHTTIME RAID OF A SUBURBAN HOME WITH GUNS DRAWN THE AGENTS DESCEND ON MR GIBSON IN THE KITCHEN WHO PROTESTS HEY GUYS IT'S ONLY VITAMINS THE SPOT ASSERTS THAT THE FOOD AND DRUG ADMINISTRATION IS CONSIDERING CLASSIFYING MOST VITAMINS AND OTHER SUPPLEMENTS AS DRUGS THE FDA HAS ALSO CONDUCTED RAIDS ON DOCTORS' OFFICES AND HEALTH FOOD STORES COULD RAIDS ON INDIVIDUALS BE NEXT THE SPOT WAS PRODUCED BY HEALTH FREEDOM TASK FORCE A SAN FRANCISCO GROUP THAT OPPOSES THE PROPOSED REGULATIONS AND HAS SENT A LONGER CELEBRITY VIDEO TO MEMBERS OF CONGRESS PAT MOONEY A SPOKESMAN FOR THE GROUP AND THE FOUNDER OF SUPERNUTRITION LIFE EXTENSION RESEARCH INC A HIGHPOTENCYVITAMIN MANUFACTURER SAID THE TASK FORCE IS COMPOSED OF CELEBRITIES WHO WERE AFRAID OF LOSING THEIR SUPPLEMENTS CONSUMERPROTECTION GROUPS LED BY CENTER FOR SCIENCE IN THE PUBLIC INTEREST ARE ASKING BROADCAST AND CABLE STATIONS NOT TO AIR THE SPOT CALLING IT A CRASS EFFORT ON THE PART OF THE VITAMIN INDUSTRY TO USE STAR POWER TO LOBBY CONGRESS TO PASS LEGISLATION EXEMPTING IT FROM THE NUTRITIONAL LABELING AND EDUCATION ACT THE FDA HAS PROPOSED APPLYING TO DIETARY SUPPLEMENTS THE SAME STANDARDS FOR HEALTH CLAIMS ON FOOD LABELS MR MOONEY SAID THE TASK FORCE HAS WORKED WITH LIKEMINDED INDUSTRY AND CONSUMER GROUPS BUT IT ISN'T A FRONT FOR HIS OR ANY OTHER COMPANY I'M JUST IN THIS AS A TEEDOFF CITIZEN HE SAID 9312080137 931208 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY NUCLEAR THREAT LEADERSHIP WANTED BY HEATHER WILSON NORTH KOREA'S NUCLEAR THREAT BUILDS DAILY EARLY LAST MONTH AS NORTH KOREA MADE MENACING NOISES ABOUT THE POSSIBILITY OF UNITED NATIONS SANCTIONS AND INCREASED ITS TROOPS ALONG THE DEMILITARIZED ZONE PRESIDENT CLINTON ACKNOWLEDGED THAT THE NORTH KOREANS' LIKELY DEVELOPMENT OF NUCLEAR WEAPONS IS A GRAVE ISSUE FOR THE US AT THE SAME TIME HE ADMITTED THAT THERE IS A LOT OF DISAGREEMENT ABOUT WHAT WE SHOULD DO TO STOP THEM THIS DESPITE A YEAR OF RHETORIC SAYING THAT COUNTERING PROLIFERATION IS ONE OF HIS TOP FOREIGN POLICY PRIORITIES OF COURSE NORTH KOREA IS NOT THE ONLY THREAT ALTHOUGH THE NUCLEAR CLUB USED TO BE ONE OF THE WORLD'S MOST EXCLUSIVE IT IS NO LONGER AS MORE AND MORE STATES ASPIRE TO MEMBERSHIP OR ACHIEVE IT THE COLLAPSE OF THE SOVIET UNION TRANSFORMED A ONCE UNIFIED MILITARY COMMAND STRUCTURE WITH CONTROL OVER AN ARSENAL OF SOME 28000 WARHEADS INTO A LOOSELY AFFILIATED COMMONWEALTH THAT INCLUDES FOUR NUCLEARARMED REPUBLICS MORE IMPORTANT THE SPREAD OF COMPUTERS AND ADVANCED TECHNOLOGY AND THE GROWTH OF SCIENTIFICALLY TRAINED ELITES IS MAKING IT POSSIBLE FOR LESS WEALTHY STATES ALL AROUND THE WORLD TO BEGIN TO DEVELOP AND MAINTAIN A NUCLEAR CAPABILITY PRACTICAL EFFORTS TO CONTROL PROLIFERATION CONTINUE TO FLOUNDER TWO YEARS AGO SENS SAM NUNN D GA AND RICHARD LUGAR R IND SET ASIDE 800 MILLION FOR ASSISTANCE TO THE FORMER SOVIET UNION TO DISMANTLE NUCLEAR WEAPONS BOGGED DOWN IN BUREAUCRACY ONLY 91 MILLION HAS BEEN SPENT ON PERIPHERAL ACTIVITIES IN 1992 SEN HANK BROWN R COLO SPONSORED LEGISLATION TO ALLOW FORMER SOVIET BOMB BUILDERS TO COME TO AMERICA BUT THE IMMIGRATION AND NATURALIZATION SERVICE STILL CAN'T DECIDE HOW TO WRITE THE REGULATIONS WHAT THEN IS TO BE DONE A COMPREHENSIVE NONPROLIFERATION PROGRAM WOULD FOCUS ON DEVELOPING NEW DEFENSIVE TECHNOLOGIES AND ENHANCING INTELLIGENCE IT WOULD ALSO ACCELERATE THE DISMANTLING OF THE FORMER SOVIET ARSENAL AND ENSURE THAT FORMER SOVIET BOMB BUILDERS DO NOT PLY THEIR TRADE IN HOSTILE COUNTRIES IT WOULD STRENGTHEN EXPORT CONTROLS TO DETER POTENTIAL PROLIFERANTS FINALLY IT WOULD EMPOWER SINGLE WASHINGTON AGENCIES TO IMPLEMENT THE DIFFERENT ELEMENTS OF THE NONPROLIFERATION PROGRAM WITH SPECIFIC GUIDANCE FROM THE WHITE HOUSE NONE OF THIS HOWEVER HAS HAPPENED THE CLINTON ADMINISTRATION HAS LARGELY FAILED TO DEVELOP COHERENT POLICIES TO MEET THE PROLIFERATION CHALLENGE A SUMMER TASK FORCE ON NONPROLIFERATION DID CULMINATE IN A SEPTEMBER SPEECH TO THE UN ANNOUNCING A NEW POLICY BUT THAT POLICY HAS SEVERAL FLAWS TO BEGIN WITH IT EMPHASIZES MULTILATERAL STRATEGIES INCLUDING THE HARMONIZATION OF EXPORT CONTROLS AND THE COORDINATION OF SANCTIONS ALTHOUGH AN ACTIVIST DIPLOMACY IS NOT OBJECTIONABLE PER SE THERE ARE PEOPLE IN THE ADMINISTRATION WHO CONSIDER MULTILATERAL DIPLOMACY TO BE INCONSISTENT WITH DEVELOPING THE MILITARY CAPABILITY TO DEFEND AGAINST PROLIFERANTS WHEN DIPLOMACY FAILS DURING LAST SUMMER'S REVIEW THERE WERE STRONG DISAGREEMENTS BETWEEN THE STATE AND DEFENSE DEPARTMENTS ABOUT DEVELOPING A COUNTERPROLIFERATION CAPABILITY IT APPEARS NOW THAT THE STATE MULTILATERALISTS HAVE WON IMPROVING OUR DEFENSES AND DEVELOPING MILITARY OPTIONS HAS RECEIVED ALMOST NO SUPPORT FROM THE WHITE HOUSE THE NEW CLINTON POLICY ALSO LOOSENS CONSTRAINTS ON THE EXPORT OF MISSILE TECHNOLOGY IN DEFERENCE TO US INDUSTRY WHICH WANTS TO ENTER THE INTERNATIONAL COMMERCIAL SPACE MARKET DESPITE CAVEATS ABOUT SELLING ONLY TO COUNTRIES THAT SUPPORT NONPROLIFERATION IT WILL BE MORE DIFFICULT FOR THE US TO PERSUADE OTHER COUNTRIES NOT TO EXPORT MISSILE TECHNOLOGY TO THEIR FRIENDS IF WE EXPORT TO OURS MOREOVER TODAY'S FRIENDS THINK OF IRAN BEFORE THE FALL OF THE SHAH CAN BECOME TOMORROW'S ENEMIES BUREAUCRATIC POLITICS CONTINUE TO BEDEVIL US NONPROLIFERATION STRATEGY AS WELL THERE ARE NOW AT LEAST THREE DIRECTORATES AT THE NATIONAL SECURITY COUNCIL WITH OVERLAPPING RESPONSIBILITIES FOR NONPROLIFERATION THE INTELLIGENCE COMMUNITY'S NONPROLIFERATION CENTER CLAIMS TO BE THE FOCAL POINT FOR INTELLIGENCE POLICY BUT IT DOES NOT COORDINATE CLOSELY WITH DEFENSE AND THE DEPARTMENT OF ENERGY BOTH OF WHICH SPEND MILLIONS OF DOLLARS EACH YEAR ON RESEARCH ANALYSIS AND THE COLLECTION OF DATA ON NONPROLIFERATION THE MAN IN CHARGE OF ALL MATTERS RELATING TO THE FORMER SOVIET UNION AT STATE STROBE TALBOTT IS NOT ACTIVELY INVOLVED IN NONPROLIFERATION MATTERS WHICH ARE LEFT INSTEAD TO AMBASSADOR JIM GOODBY AND SO ON THE SUMMER TASK FORCE FAILED TO CUT THROUGH THIS BUREAUCRATIC GORDIAN KNOT THESE ARE SERIOUS FLAWS IT IS TRUE THAT THE ACQUISITION OF WEAPONS OF MASS DESTRUCTION WILL OFTEN BE DRIVEN BY REGIONAL FACTORS LARGELY BEYOND US INFLUENCE AND THAT THE US WILL BE UNABLE TO DETER THE USE OF THESE WEAPONS SIMPLY BY POSSESSING A NUCLEAR DETERRENT OF ITS OWN BUT THAT MAKES IT ALL THE MORE ESSENTIAL THAT THE US DEVELOP A COHERENT STRATEGY INTELLIGENCE AND DEFENSE AT A MINIMUM WE MUST DEVELOP MORE ACCURATE REALTIME INTELLIGENCE TO LOCATE PRECISELY NUCLEAR WARHEADS AND DELIVERY VEHICLES AND THEN INTEGRATE THAT INFORMATION WITH WEAPONS SYSTEMS CAPABLE OF DESTROYING THEM IN A WAR AGAINST A NUCLEARARMED ENEMY SCUDBUSTING CANNOT BE LEFT TO LUCK WE MUST ALSO DEVELOP THE ABILITY TO INTERCEPT BALLISTIC MISSILES IN THE ASCENT PHASE INTERCEPTING WARHEADS IN THE MOMENTS BEFORE IMPACT A SIGHT MADE FAMILIAR AS PATRIOT MISSILES FIRED AT INCOMING SCUDS IN THE GULF WAR IS NOT GOOD ENOUGH IF A NUCLEAR WEAPON IS ON BOARD PREEMPTIVE STRIKES THERE ARE CIRCUMSTANCES IN WHICH THE US SHOULD BE PREPARED TO USE MILITARY FORCE PREEMPTIVELY TO DESTROY THE WEAPONS OF MASS DESTRUCTION OF ANOTHER STATE LIKEWISE WE SHOULD HAVE THE ABILITY TO ACT COVERTLY TO DISABLE OR DESTROY THOSE WEAPONS IT ISN'T NECESSARY TO SPELL OUT IN ADVANCE THE PRECISE CIRCUMSTANCES IN WHICH WE WOULD DO SO BUT PROLIFERANTS MUST NEVER BE ALLOWED TO ASSUME THAT THE US WILL WAIT TO BE ATTACKED WITH NUCLEAR WEAPONS BEFORE WE WILL ACT CERTAINLY WE SHOULD NOT FAIL TO DEVELOP THESE MILITARY CAPABILITIES BECAUSE WE ARE AFRAID OF THE CONTROVERSY THAT MIGHT ENSUE AND OF COURSE DESPITE THE BEST EFFORTS OF THE MULTILATERALISTS THE US SHOULD BE PREPARED TO ACT ALONE IF IT IS IN OUR NATIONAL INTEREST TO DO SO ONE POLICY ONE AGENCY IT MAY BE TOO LATE TO SALVAGE THE NUNNLUGAR PROGRAM TO ASSIST THE FORMER SOVIET UNION IF ANYTHING IS TO BE ACCOMPLISHED THE WASHINGTON INTERAGENCY COMMUNITY SHOULD AGREE ON A GENERAL POLICY APPROVED BY THE PRESIDENT AND ONE AGENCY PROBABLY THE DEFENSE DEPARTMENT SHOULD BE EMPOWERED TO CARRY IT OUT WE SHOULD ABANDON THE NOTION OF NEGOTIATING FORMAL GOVERNMENTTOGOVERNMENT AGREEMENTS REQUIRING RATIFICATION INSTEAD THE US SHOULD FOCUS ITS EFFORTS ON PRACTICAL ASSISTANCE IN AREAS WHERE WE CAN MAKE THE MOST DIFFERENCE THIS WOULD INCLUDE EFFORTS TO IMPROVE ACCOUNTABILITY AND THE SAFE STORAGE OF NUCLEAR MATERIALS AND THE ENVIRONMENTALLY SAFE DESTRUCTION OF ICBMS AND THEIR FUEL SOVIET SCIENTISTS THE US MUST COORDINATE ITS INTELLIGENCE AND IMMIGRATION ACTIVITIES TO ENSURE THAT BOMB BUILDERS WHO ARE LEAVING THE FORMER SOVIET UNION CAN COME TO AMERICA LIMITS TO TECHNOLOGY EXPORTS THE US SHOULD SEEK TO STRENGTHEN THE MISSILE TECHNOLOGY CONTROL REGIME RATHER THAN WEAKEN IT BY TRYING TO DISTINGUISH BETWEEN ACCEPTABLE COMMERCIAL SPACE LAUNCH SALES AND UNACCEPTABLE MISSILE ACTIVITIES THESE LIMITATIONS WILL CONTINUE TO BE UNPOPULAR WITH THE US SPACE AND MISSILE INDUSTRY BUT TO DO OTHERWISE SENDS THE WRONG MESSAGE TO OTHER SUPPLIERS OF MISSILE TECHNOLOGY COUNTERING PROLIFERATION IS NOT ABOUT BUILDING A NEW CONSENSUS THAT NONPROLIFERATION IS IMPORTANT THAT CONSENSUS HAS EXISTED FOR MANY YEARS AMONG THE VAST MAJORITY OF STATES AND WILL CONTINUE TO BE IMPOSSIBLE TO ACHIEVE WITH STATES DETERMINED TO ACQUIRE NUCLEAR WEAPONS RATHER COUNTERING PROLIFERATION IS ABOUT DECIDING TO USE US RESOURCES AND INFLUENCE TO PREVENT PROLIFERATION WHERE POSSIBLE TO ASSIST COUNTRIES IN A RAPID AND FLEXIBLE WAY WHEN OPPORTUNITIES ARISE TO DISMANTLE WEAPONS AND TO DEFEND AGAINST PROLIFERANTS WHEN OUR DIPLOMATIC EFFORTS FAIL MS WILSON IS PRESIDENT OF KEYSTONE INTERNATIONAL AN ALBUQUERQUE NM CONSULTING GROUP SHE WAS DIRECTOR FOR DEFENSE POLICY AND ARMS CONTROL ON THE NATIONAL SECURITY COUNCIL 198991 THIS ARTICLE IS ADAPTED FROM A LONGER ONE APPEARING THIS MONTH IN THE NATIONAL INTEREST 9312080136 931208 PEPPERAND SALT ONE VERSED IN LEARNING A TO Z I'M TRUDGING STILL THE ROAD TO B IN MY OPINION IS AN EYESORE 9312080135 931208 VIETNAM WAR CDROM TITLE NEW YORK CBS NEWS NEW YORK TIMES CO AND APPLE COMPUTER INC SAID THEY WILL PRODUCE AN INTERACTIVE CDROM TITLE ON THE VIETNAM WAR BASED ON REPORTING AND NEWS ARCHIVES OF THE TWO NEWS ORGANIZATIONS THE FIRST INTERACTIVE CDROM VENTURE FOR BOTH NEWS COMPANIES THE SOFTWARE ENCYCLOPEDIA WILL CONTAIN FILM AND VIDEOTAPE FROM CBS NEWS A UNIT OF CBS INC AND MORE THAN 700 NEWS ARTICLES FROM THE TIMES THE SPOKESMAN FOR THE TIMES SAID THE CDROM INITIALLY WILL BE MADE FOR USE IN MACINTOSH COMPUTERS PRICE HASN'T BEEN DETERMINED APPLE'S STARCORE SOFTWARE GROUP WILL PUBLISH AND MARKET THE TITLE 9312080134 931208 WHO'S NEWS GACCIONE TO BE HEILEMAN CEO DALLAS HICKS MUSE & CO SAID RICHARD F GACCIONE WILL BE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF G HEILEMAN BREWING CO AFTER THE INVESTMENT FIRM COMPLETES ITS 390 MILLION ACQUISITION OF THE CLOSELY HELD BEER COMPANY NEXT MONTH MR GACCIONE 46 YEARS OLD WAS MOST RECENTLY A SENIOR VICE PRESIDENT AT BRISTOLMYERS SQUIBB CO AS PRESIDENT AND CEO HE WILL SUCCEED THOMAS J RATTIGAN 56 WHO ALSO CONTINUES TO BE HEILEMAN'S CHAIRMAN UNTIL HICKS MUSE TAKES OVER WHEN THE INVESTMENT FIRM ANNOUNCED THE ACQUISITION NOV 1 IT SAID WILLIAM J TURNER WOULD SUCCEED MR RATTIGAN AS CHAIRMAN 9312080133 931208 INSIDE TRACK BUSINESS IS BOOMING FOR BROKERS HANDLING RESTRICTEDSTOCK SALES BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL NEVER BEFORE HAVE SO MANY EXECUTIVES OF SMALL COMPANIES BECOME OVERNIGHT MILLIONAIRES ON PAPER AT LEAST THE PROBLEM FOR MANY OF THEM IS CONVERTING BIG PAPER PROFITS IN THEIR COMPANIES' STOCK INTO READY CASH IT'S DIFFICULT FOR THESE INSIDERS TO SELL EVEN PART OF THEIR HOLDINGS WITHOUT SPOOKING THE MARKET VIOLATING SECURITIES AND EXCHANGE COMMISSION RULES OR TRIGGERING A SHAREHOLDER SUIT I CAN'T USE A SHARE OF MY STOCK TO BUY A LIFT TICKET AT SUN VALLEY SAYS RICHARD ST JOHN PRESIDENT OF SCANDINAVIAN BROADCASTING CO WHO HAS A VACATION HOME AT THE SKI RESORT ENTER THE 144 BROKER A SPECIALIST WHO HANDLES THE SALE BY CORPORATE OFFICERS DIRECTORS AND OTHERS OF RESTRICTED STOCK RESTRICTED STOCK IS STOCK OBTAINED WITHOUT GOING THROUGH A PUBLIC OFFERING COMPANIES OFTEN GIVE RESTRICTED STOCK OR SELL IT AT BELOWMARKET PRICES TO FOUNDERS EXECUTIVES AND OTHER COMPANY INSIDERS WHEN THOSE INSIDERS SELL THEIR RESTRICTED SHARES THE TRANSACTIONS ARE REGULATED BY THE SEC'S RULE 144 BUSINESS IS BOOMING FOR THE 144 BROKERS THE STOCK MARKET HAS BEEN STRONG THIS YEAR AND THE NUMBER OF INITIAL PUBLIC OFFERINGS AND SECONDARY OFFERINGS HAS SET A RECORD CREATING A NEW CLASS OF WEALTHY ENTREPRENEURS NOW THEY WANT TO TURN SOME OF THEIR PAPER INTO GOLD THROUGH NOVEMBER SALES OF RESTRICTED STOCK THIS YEAR TOPPED SUCH SALES FOR ALL OF 1992 ACCORDING TO CDA/INVESTNET INC A FORT LAUDERDALE FLA FIRM THAT TRACKS INSIDER TRADING EVER SINCE LAST APRIL RULE 144 SALES HAVE EXPLODED SAYS ROBERT GABELE PRESIDENT OF CDA/INVESTNET RULE 144 SALES BY CORPORATE INSIDERS TEND TO TRACK A RISING STOCK MARKET AND WE'RE AT THE TAIL END OF AN EXTENDED BULL MARKET HE SAYS COMPETITION TO HANDLE THESE TRANSACTIONS IS FIERCE SAYS WILLIAM BOYD MANAGING DIRECTOR OF ALEX BROWN & SONS OF BALTIMORE HE SAYS EVERY BIG BROKERAGE FIRM HAS A CORPORATESERVICES DEPARTMENT OR GROUP OF BROKERS WHO SPECIALIZE IN THESE TRADES THESE TOP OFFICERS ARE SO VISIBLE EVERY BROKER WANTS TO CALL THEM HE SAYS BROKERAGE FIRMS DON'T MAKE MUCH MONEY SELLING BLOCKS OF EXECUTIVES' SHARES FOR COMMISSIONS THAT RANGE FROM FIVE CENTS TO 12 CENTS A SHARE BUT FOR A SHARP BROKER EAGER TO GATHER ASSETS AND PROVIDE SERVICES FOR WEALTHY INDIVIDUALS RULE 144 SALES CAN LEAD TO A BIG PAYOFF DOWN THE ROAD SAYS PERRIN LONG BROKERAGE INDUSTRY ANALYST AT FIRST OF MICHIGAN CORP ALL KINDS OF GOOD THINGS CAN COME FROM IT IF THE BROKER DOES AN EFFECTIVE JOB FOR THE EXECUTIVE IT GIVES HIS FIRM A FOOT IN THE DOOR TO SUGGEST WAYS TO INVEST THE PROCEEDS AFTER THE STOCK IS SOLD LATER THE BROKER CAN DO ESTATE AND RETIREMENT PLANNING FOR THE EXECUTIVE AND FRIENDS SELL LIFE INSURANCE AND HELP SET UP EXECUTIVEBENEFIT PLANS FOR THE COMPANY THE BROKER CAN EVEN BRING IN INVESTMENTBANKING BUSINESS FOR HIS FIRM IF THE EXECUTIVE'S COMPANY LATER DECIDES TO SELL ADDITIONAL STOCK TO THE PUBLIC IT'S A HOOK TO GET THEM INTO THE ENTREPRENEUR'S BUSINESS SAYS MICHAEL STOLPER A SAN DIEGO CONSULTANT WHO HELPS WEALTHY INDIVIDUALS CHOOSE MONEY MANAGERS TAKE RICHARD GADBOIS III A 144 BROKER FOR PRUDENTIAL SECURITIES WHO RUNS A FIVEPERSON GROUP IN IRVINE CALIF OPERATING IN ORANGE COUNTY HE HAS BUILT HIS BUSINESS BY TARGETING CALIFORNIA ENTREPRENEURS AND THEN ADDING CLIENTS THROUGH NETWORKING RICH HAS A KNACK FOR KNOWING PEOPLE WHO HAVE MONEY SAYS ROBERT GRAY CHAIRMAN OF ST JOHN KNITS INC AN IRVINEBASED MAKER OF WOMEN'S FASHION CLOTHING IN ADDITION TO SELLING STOCK FOR INSIDERS MR GADBOIS OPERATES AS A MIDDLEMAN PUTTING EXECUTIVES TOGETHER WITH MONEY MANAGERS EXECUTIVEBENEFIT CONSULTANTS AND ESTATE PLANNERS MOST OF WHOM COME FROM OUTSIDE PRUDENTIAL A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA MR GADBOIS SAYS HE HAS HELPED WIN INVESTMENTBANKING BUSINESS FOR PRUDENTIAL ADDING THAT HE HAS GROSSED MORE THAN 1 MILLION A YEAR IN COMMISSIONS AND FEES FOR HIS FIRM OVER THE PAST FIVE YEARS MR GADBOIS GETS MANY LEADS BY COLDCALLS TO EXECUTIVES A TYPICAL CALL BY ONE OF HIS CREW GOES SOMETHING LIKE THIS MR EXECUTIVE I SEE THAT YOUR STOCK HAS HIT A NEW HIGH TODAY DO YOU THINK IT MAKES SENSE TO LIGHTEN UP A BIT ON YOUR HOLDINGS NOT EVERYONE TAKES THE ADVICE TAKE THERESE E MYERS PRESIDENT OF QUARTERDECK OFFICE SYSTEMS INC A SANTA MONICA CALIF SOFTWARE DISTRIBUTOR SHE STILL HOLDS 15 MILLION SHARES OF HER COMPANY'S STOCK THAT WAS VALUED AT 39 MILLION AT THE BEGINNING OF 1992 WHEN QUARTERDECK WAS SELLING AT 26 A SHARE TODAY WITH THE STOCK SELLING FOR A LITTLE OVER 2 A SHARE MS MYERS' STAKE IS WORTH ONLY ABOUT 3 MILLION I DIDN'T SELL EVEN THOUGH MY TAX ACCOUNTANTS ADVISED ME TO DO THAT SAYS MS MYERS I'M IN IT FOR THE LONG TERM I BELIEVE IN THE COMPANY A COMMON MISTAKE SAYS MR GADBOIS ENTREPRENEURS FALL IN LOVE WITH THEIR STOCK AND BECOME OBLIVIOUS TO THE DOWNSIDE EXPOSURE OF THEIR CONCENTRATED HOLDINGS SELLING RESTRICTED STOCK CAN BE A HEADACHE HOWEVER FOR INSTANCE DURING ANY 90DAY PERIOD AN INSIDER'S SALES OF RESTRICTED SHARES MUST BE LESS THAN 1 OF THE COMPANY'S TOTAL SHARES OUTSTANDING OR NO MORE THAN THE AVERAGE VOLUME OF THE STOCK IN THE MOST RECENT FOUR WEEKS PRECEEDING THE SALE WHICH EVER IS GREATER IN ADDITION THE INSIDER MUST HAVE HELD THE SHARES FOR AT LEAST TWO YEARS FOR DISCLOSURE PURPOSES INSIDERS CAN SELL RESTRICTED SHARES ONLY AFTER WAITING 48 HOURS AFTER A PUBLIC ANNOUNCEMENT OR EARNINGS RELEASE SO INVESTORS HAVE THE SAME INFORMATION AND TRANSACTIONS MUST BE REPORTED TO THE SEC WHERE THE SALES BECOME A MATTER OF PUBLIC RECORD MR GADBOIS ADVISES HIS CLIENTS TO BEGIN A REGULAR PROGRAM OF SELLING SHARES SUCH AS A SMALL AMOUNT EVERY QUARTER SO THEY CAN DIVERSIFY THEIR ASSETS SLOWLY AND NOT CALL ATTENTION TO THE SALES THAT WAY THEY DON'T END UP AS A HEADLINE IN THE WALL STREET JOURNAL'S INSIDE TRACK COLUMN HE SAYS BUT MOST EXECUTIVES DON'T SELL STOCK ON A REGULAR BASIS SAYS JESSE BRILL SECURITIES COUNSEL FOR DEAN WITTER REYNOLDS INC COMPANIES SHAREHOLDER GROUPS AND ANALYSTS ENCOURAGE EXECUTIVES TO HOLD THEIR STOCK THROUGH THICK AND THIN HE SAYS INDEED EXECUTIVES TYPICALLY SELL ONLY WHEN THEY ARE NEARING RETIREMENT WHEN THEY NEED MONEY TO BUY A HOME OR FOR OTHER SIMILAR REASONS MANY 144 BROKERS SAY THEY ARE COGNIZANT OF THE LONGRUN POTENTIAL OF THEIR BUSINESS AND THEREFORE DON'T SPEND MUCH TIME CALLING EXECUTIVES WITH STOCK TIPS TO BE SUCCESSFUL YOU HAVE TO WORK AT IT VERY CAREFULLY AND NOT UPSET PEOPLE SAYS MR LONG THE BROKERAGEINDUSTRY ANALYST SAYS MR GADBOIS THIS IS NOT THE TYPE OF BUSINESS WHERE YOU CALL THE CEO WITH THE IDEA OF THE WEEK 9312080132 931208 US PERMITS JET PURCHASES BY SYRIA FROM KUWAIT WASHINGTON AMID RISING HOPES THAT SYRIANISRAELI PEACE TALKS WOULD RESUME SOON THE CLINTON ADMINISTRATION AGREED TO PERMIT SYRIA TO PURCHASE THREE USMADE BOEING 727 COMMERCIAL JETS FROM KUWAIT EARLIER THIS WEEK SYRIAN PRESIDENT HAFEZ AL ASSAD TOLD SECRETARY OF STATE WARREN CHRISTOPHER WHO IS VISITING THE REGION THAT DAMASCUS WOULD HELP INVESTIGATE THE FATE OF SEVEN ISRAELI SOLDIERS MISSING IN LEBANON FOR NEARLY A DECADE SYRIA HAS A STRONG INFLUENCE OVER LEBANON'S GOVERNMENT THE RECIPROCAL GESTURES BY SYRIA AND THE US ARE PART OF AN EFFORT BY MR CHRISTOPHER DURING HIS TRIP TO REIGNITE PEACE TALKS THAT HAVE BEEN STALLED SINCE SEPTEMBER BETWEEN THE TWO MIDDLE EAST NATIONS YESTERDAY MR CHRISTOPHER SAID IN JERUSALEM THAT PRESIDENT ASSAD HAD EXPRESSED HIS READINESS TO RESUME THE TALKS ACCORDING TO WIRESERVICE REPORTS MR CHRISTOPHER IS SCHEDULED TO RETURN TO DAMASCUS TOMORROW FOR MORE TALKS WITH MR ASSAD US PERMISSION IS REQUIRED FOR KUWAIT TO SELL SYRIA THE THREE AGING JETS SUCH SALES TO DAMASCUS ARE BANNED BECAUSE SYRIA IS ON A US LIST OF NATIONS THAT SUPPORT TERRORISM A DEPARTMENT SPOKESWOMAN IN WASHINGTON SAID THE ACTION DOESN'T SIGNAL ANY CHANGE IN THE SANCTIONS IMPOSED ON SYRIA 9312080130 931208 WHO'S NEWS DISSIDENT ELECTED TO SL'S BOARD MT LAUREL NJ SL INDUSTRIES INC SAID ITS SHAREHOLDERS ELECTED AS A DIRECTOR WARREN LICHTENSTEIN THE NOMINEE OF A DISSIDENT SHAREHOLDER GROUP THAT LAUNCHED A PROXY CONTEST FOR THE BOARD SEAT MR LICHTENSTEIN SUCCEEDS MARTIN SOLOMON AS A DIRECTOR AT THE MAKER OF ENGINEERED PRODUCTS MR SOLOMON AND WILMER J THOMAS JR RESIGNED AS DIRECTORS AFTER SL AGREED TO REPURCHASE 507361 SL SHARES HELD BY MESSRS SOLOMON AND THOMAS STEEL PARTNERS LP SOUGHT MR LICHTENSTEIN'S ELECTION AS A DIRECTOR AFTER SL REFUSED TO OFFER STEEL PARTNERS REPRESENTATION ON THE SL BOARD STEEL PARTNERS OWNS ABOUT 4 OF SL'S SIX MILLION SHARES OUTSTANDING 9312080129 931208 HARCOURT GENERAL INC EXPECTS 36 INCREASE IN 4THQUARTER PROFIT NEWTON MASS HARCOURT GENERAL INC EXPECTS TO REPORT NET INCOME OF ABOUT 27 MILLION OR 34 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER UP 36 FROM A RESTATED 199 MILLION OR 25 CENTS A SHARE IN THE YEAREARLIER PERIOD PROFIT FROM CONTINUING OPERATIONS WHICH EXCLUDES HARCOURT'S SOONTOBESHED CINEMA UNIT ROSE TO ABOUT 39 CENTS A SHARE FROM 28 CENTS A SHARE SAID ROBERT TARR CHIEF EXECUTIVE OFFICER REVENUE FOR THE QUARTER ENDED OCT 31 WAS APPROXIMATELY 906 MILLION UP 11 FROM A RESTATED 8149 MILLION RESULTS WERE BUOYED BY OPERATINGPROFIT GAINS IN THE COMPANY'S INSURANCE AND RETAILING OPERATIONS WHICH MORE THAN OFFSET DECLINES IN PUBLISHING AND PROFESSIONAL SERVICES A NEW BUSINESS LINE THAT INCLUDES THE DRAKE BEAM & MORAN OUTPLACEMENT CONCERN THEATERS WERE EXCLUDED FROM THE REVENUE FIGURES IN BOTH YEARS MR TARR GAVE NO FIGURES FOR THE SPINOFF GC COS GC'S RESULTS FOR THE PERIOD WILL BE REPORTED SEPARATELY MR TARR ALSO SAID HARCOURT EXPECTS AN AFTERINFLATION INCREASE IN PROFIT FROM CONTINUING OPERATIONS FOR THE CURRENT FISCAL YEAR AMID A TOUGH ENVIRONMENT FOR TEXTBOOK SALES AS FOR GC WHOSE STOCK IS TRADING ON A WHENISSUED BASIS IN ADVANCE OF THE DEC 15 SEPARATION MR TARR SAID THE FIRSTQUARTER OPERATING OUTLOOK WAS DIMMED BECAUSE THIS CHRISTMAS IS NOT GOING TO BE AS GOOD AS LAST CHRISTMAS BECAUSE OF A LACK OF BIG SCREEN HITS FOR THE FISCAL YEAR JUST ENDED HARCOURT EXPECTS TO REPORT NET INCOME OF ABOUT 171 MILLION OR 215 A SHARE DOWN 65 FROM 4945 MILLION OR 625 A SHARE IN 1992 WHICH INCLUDED A ONETIME GAIN OF 530 A SHARE FOR DEBT PURCHASED AT A DISCOUNT AND A 46CENTASHARE CHARGE FOR FUTURE RETIREMENT BENEFITS PROFIT FROM CONTINUING OPERATIONS IS EXPECTED AT 208 A SHARE INCLUDING 15 CENTS A SHARE RELATED TO A LEGAL SETTLEMENT COMPARED WITH 136 A SHARE REVENUE ROSE TO APPROXIMATELY 366 BILLION FROM 326 BILLION 9312080128 931208 LETTERS TO THE EDITOR PROFILE OF BLACK VOTERS IS HARDLY CONSERVATIVE ROBERT WOODSON'S THE INDEPENDENT BLACK VOTER EDITORIAL PAGE NOV 15 MAKES RATHER PROMISCUOUS USE OF SURVEY RESULTS FROM THE HBO/JOINT CENTER SURVEY FROM JUNE 1992 IN TWO INSTANCES MR WOODSON CITES FINDINGS FROM THE SURVEY TO SHOW THAT AFRICANAMERICAN LEADERS ARE UNREPRESENTATIVE OF THEIR FOLLOWERS IN THE PUBLIC IN BOTH INSTANCES HIS USE OF THESE FINDINGS IS MISLEADING FIRST HE CITES SURVEY FINDINGS SUGGESTING THAT 88 OF ALL AFRICANAMERICANS SUPPORT SCHOOL VOUCHERS THESE RESULTS ARE FROM A FOLLOWUP QUESTION ON SCHOOL CHOICE NOT VOUCHERS PRIOR TO BEING ASKED A QUESTION ON SUPPORT FOR SCHOOL CHOICE BLACK RESPONDENTS WERE ASKED A SCREENING QUESTION HAVE YOU HEARD OR READ ABOUT ANY OF THE CHOICE IN EDUCATION' PROPOSALS BEING DISCUSSED IN THIS YEAR'S ELECTION CAMPAIGN ONLY 345 ANSWERED IN THE AFFIRMATIVE AND ONLY THOSE RESPONDENTS WHO ANSWERED IN THE AFFIRMATIVE WERE ASKED FOR THEIR POSITION ON SCHOOL CHOICE EIGHTYEIGHT PERCENT OF THE 345 OF AFRICANAMERICANS ANSWERING IN THE AFFIRMATIVE INDICATED SUPPORT FOR SCHOOL CHOICE IT WOULD BE MORE THAN A LITTLE MISLEADING TO CONCLUDE THAT IF THIS DEBATE WAS MORE WIDELY KNOWN THEN SUPPORT WOULD FINALLY REACH THAT 88 LEVEL THIS IS BECAUSE THOSE RESPONDENTS WHO HAD READ OR HEARD ABOUT CHOICE IN EDUCATION ARE NOT A CROSSSECTION OF BLACK AMERICA PEOPLE WITH CHILDREN IN PRIVATE OR PAROCHIAL SCHOOLS MIDDLE CLASS AND UPPERINCOME PEOPLE REPUBLICANS AND MORE HIGHLY EDUCATED PEOPLE ARE MORE LIKELY TO BE AWARE OF CAMPAIGN DEBATES ON SCHOOL CHOICE SECOND MR WOODSON CITES FINDINGS FROM THE HBO/JOINT CENTER SURVEY THAT SUGGEST THE AFRICANAMERICAN PUBLIC IS CONSERVATIVE THE FINDINGS HE CITES ARE FROM A QUESTION ON SELFIDENTIFIED IDEOLOGY IE RESPONDENTS WERE ASKED TO RATE THEMSELVES AS BEING LIBERAL MODERATE OR CONSERVATIVE THESE FINDINGS TAKEN BY THEMSELVES MEAN VERY LITTLE SUBSTANTIVELY OF THE 33 OF THE BLACK RESPONDENTS WHO IDENTIFIED THEMSELVES AS CONSERVATIVE 79 OF THEM FAVOR AFFIRMATIVE ACTION 76 BELIEVE DEFENSE SPENDING SHOULD BE CUT DRAMATICALLY WITH THE SAVINGS GOING TO URBAN INITIATIVES 81 THINK TOO LITTLE MONEY IS BEING SPENT ON EDUCATION 83 FAVOR AFROCENTRIC EDUCATION 80 FAVOR GOVERNMENT INITIATIVES HELPING YOUNG BLACK MALES TWOTHIRDS ARE DEMOCRATS AND 75 RATE JESSE JACKSON FAVORABLY IF THIS IS BOB WOODSON'S PROFILE OF A BLACK CONSERVATIVE SO BE IT BUT HE SHOULD MAKE CLEAR THAT BLACK CONSERVATISM EQUATES WITH GOVERNMENT ACTIVISM 9312080127 931208 TEXAS JOURNAL WASTE COMPANY VOWS TO CHANGE ITS WAYS BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL MOBLEY ENVIRONMENTAL SERVICES INC IS TRYING TO CLEAN UP ITS ACT AFTER A SERIES OF REBUKES FROM TEXAS REGULATORS THE KILGOREBASED COMPANY HAS TIGHTENED CONTROLS IN ITS HAZARDOUSWASTE BUSINESS IT HAS ALSO NAMED A NEW CHIEF EXECUTIVE OFFICER THE FIRST FROM OUTSIDE THE FOUNDING MOBLEY FAMILY AND TO DEAL WITH AN INDUSTRY SLUMP IT IS DIVERSIFYING MOVING INTO MEXICO AND SEEKING NEW SOURCES OF WASTE I THINK MANAGEMENT'S ON A RESCUE MISSION SAYS HUGH HOLMAN AN ANALYST WITH ALEX BROWN & SONS BALTIMORE THE COMPANY IS IN DEEP WATER AND TRYING TO MAKE ITS WAY TO SHORE BUT IT'S VERY TOUGH TO STAY ON COURSE WHEN YOU'RE BAILING HOW DID MOBLEY WIND UP IN A PRECARIOUS POSITION PARTLY BECAUSE HAZARDOUS WASTE ITS BIGGEST BUSINESS IS A SHRINKING MARKET THE HIGH COST OF DISPOSAL HAS SPURRED COMPANIES TO GENERATE LESS OF IT BUT MOBLEY'S HAZARDOUSWASTE FACILITY OPERATED IN TINY WINONA BY ITS GIBRALTAR CHEMICAL RESOURCES INC UNIT ALSO HAS RUN INTO PROBLEMS OF ITS OWN SINCE 1990 THE PLANT HAS REPORTED AT LEAST 10 SPILLS OR AIRBORNE EMISSIONS SAYS THE TEXAS NATURAL RESOURCE CONSERVATION COMMISSION MOST INCIDENTS RESULTED FROM THE MIXING OF INCOMPATIBLE WASTES REGULATORS SAY ON JAN 7 FOR INSTANCE AN UNEXPECTED CHEMICAL REACTION LIFTED A YELLOWGREEN CLOUD CONTAINING NITROGEN DIOXIDE AND HYDROGEN BROMIDE INTO THE AIR ABOVE THE PLANT THE ACCIDENT SPARKED A ROUND OF PICKETING BY A COMMUNITY GROUP MOTHERS ORGANIZED TO STOP ENVIRONMENTAL SINS OR MOSES WHICH HAS LOGGED HUNDREDS OF COMPLAINTS OF NOXIOUS ODORS POLLUTED GROUND WATER AND HEALTH PROBLEMS THAT MEMBERS SAY WERE CAUSED BY THE PLANT IT ALSO PROMPTED THE FEDERAL BUREAU OF INVESTIGATION AND THE ENVIRONMENTAL PROTECTION AGENCY TO INVESTIGATE POSSIBLE CRIMINAL VIOLATIONS AT THE FACILITY THE COMPANY SAYS IT IS COOPERATING WITH THE INQUIRY BUT BELIEVES NO WRONGDOING OCCURRED AFTER ANOTHER ACCIDENT IN SEPTEMBER STATE REGULATORS BARRED THE FACILITY FROM ACCEPTING WASTE SHIPMENTS THEY LIFTED THE BAN AFTER ONLY 10 DAYS BUT IT HAS HAD LASTING IMPACT MANY CUSTOMERS ARRANGED NEW LONGTERM DISPOSAL CONTRACTS AND THE PLANT'S REVENUES HAVE DROPPED BY HALF IN OCTOBER THE COMPANY LAID OFF 70 OF THE PLANT'S 165 EMPLOYEES IN THIS YEAR'S FIRST NINE MONTHS MOBLEY HAD A NET LOSS OF 61 MILLION COMPARED WITH PROFIT OF 23 MILLION A YEAR EARLIER THE LOSS INCLUDED A ONETIME CHARGE OF 46 MILLION PARTLY FOR SEVERANCE COSTS FROM THE LAYOFFS AND LEGAL AND CONSULTING EXPENSES FROM REGULATORY PROBLEMS REVENUE MEANWHILE FELL 15 TO 277 MILLION SOON AFTER THE LAYOFFS THE FOUNDER'S SON JOHN MOBLEY STEPPED ASIDE AS CEO KEEPING ONLY THE CHAIRMAN'S TITLE TAKING HIS PLACE WAS MICHAEL STARK WHO HAD BEEN MOBLEY'S PRESIDENT AND CHIEF OPERATING OFFICER FOR A YEAR AFTER SIX YEARS AS HEAD OF WASTETREATMENT OPERATIONS AT TETRA TECHNOLOGIES INC A HOUSTON CHEMICAL RECYCLER THE 50YEAROLD MR STARK WITH A BACKGROUND IN TURNAROUNDS AND STARTUPS WAS PREPARED TO COUNTER THE HAZARDOUSWASTE SLUMP HE HAS CUT COSTS CONSOLIDATING THE SALES FORCE AND MOVING AWAY FROM SMALLPACKAGE WASTE GENERATORS AND HE IS CONTINUING THE COMPANY'S SEARCH FOR NEW WASTE BUSINESS HE EXPECTS MOBLEY TO SHOW A PROFIT BY THE FIRST QUARTER OF 1994 BUT MR STARK ALSO HAS HAD TO DEAL WITH THE FALLOUT FROM THE WINONA FACILITY'S PROBLEMS HE ACKNOWLEDGES MINOR AND REPEATED INCIDENTS AT THE PLANT BUT ADDS THAT IT HAS GREATLY IMPROVED ITS CONTROLS IN RECENT MONTHS PROCEDURES REQUIRED UNDER A TNRCC ORDER ISSUED IN JULY WERE EITHER IN PLACE OR BEING IMPLEMENTED AT THE TIME OF THE SEPTEMBER ACCIDENT HE SAYS THE INCIDENT OCCURRED HE ADDS BECAUSE OF A GAP IN THE PRESCRIBED PROCEDURES AND DURING THE SHUTDOWN THE COMPANY REFINED ITS CONTROLS TO AVOID A REPETITION THE TNRCC ORDERED MOBLEY TO HAVE TWO CONSULTING FIRMS MONITOR THE FACILITY THROUGH YEAR'S END GIBRALTAR MAY HAVE SOME OF THE BEST HANDLING PROCEDURES IN THE STATE BECAUSE OF THE REQUIREMENTS WE PLACED ON IT SAYS KENNETH RAMIREZ THE COMMISSION'S DEPUTY EXECUTIVE DIRECTOR FOR LEGAL SERVICES AND COMPLIANCE PLANT OPPONENTS THOUGH SAY THE COMPANY HASN'T DONE ENOUGH TO ADDRESS THEIR CONCERNS THE MOSES GROUP DEMANDS THAT MR STARK MOVE TO THE WINONA AREA AND THAT MOBLEY INSTALL A THOROUGH AIRMONITORING SYSTEM WITH A SIREN TO WARN NEIGHBORS OF ACCIDENTAL RELEASES THE COMPANY HAS PROPOSED A MORE MODEST MONITORING SYSTEM THE TNRCC IS CONSIDERING THE ISSUE MR STARK SAYS HE WOULD LOVE TO LIVE IN THE COUNTRY AROUND WINONA IF HIS WIFE WEREN'T A CITY PERSON WHO WANTS TO STAY IN TYLER AT THE SAME TIME MR STARK MAKES CLEAR THAT MOBLEY'S FUTURE LIES OUTSIDE BOTH THE GIBRALTAR FACILITY AND THE US HAZARDOUSWASTE BUSINESS HE PLANS TO EXPAND THE COMPANY'S ROLE AS A RECYCLER OF NONHAZARDOUS OILY WASTE INTO FUELS AND OTHER PRODUCTS RECYCLING OILY WASTE FROM MACHINE LUBRICANTS UNDERGROUND STORAGE TANKS AND OTHER PETROLEUM PRODUCTS THAT HAVE BEEN MIXED WITH WATER IS THE COMPANY'S FASTESTGROWING BUSINESS AND GENERATED NEARLY ONEQUARTER OF TOTAL REVENUE LAST YEAR IN OCTOBER THE COMPANY DOUBLED ITS OILWASTE RECYCLING CAPACITY BY OPENING A FACILITY IN BAYTOWN PERHAPS MORE IMPORTANT FOR THE LONG TERM THE COMPANY IN MARCH ENTERED INTO A JOINT VENTURE WITH MEXICO'S CEMEX SA A BIG CEMENT MAKER TO SET UP TWO FUELBLENDING PLANTS IN MEXICO THE FIRST OF THE PLANTS WHICH WILL BLEND VARIOUS HAZARDOUS WASTES INTO FUEL FOR USE IN CEMENT KILNS IS SCHEDULED TO OPEN BY MID1994 SOME ENVIRONMENTALISTS CRITICIZE THE CEMEX DEAL SAYING IT IS A WAY FOR MOBLEY TO ESCAPE SCRUTINY FROM US REGULATORS COMPANY OFFICIALS SAY THE PLANT IS BEING BUILT TO EPA STANDARDS THE VENTURE 25OWNED BY MOBLEY IS EXPECTED TO CONTRIBUTE SUBSTANTIALLY TO EARNINGS BY 1995 IT ALSO GIVES THE COMPANY A FOOTHOLD IN THE POTENTIALLY LUCRATIVE MEXICAN HAZARDOUSWASTE MARKET THE VENTURE SAYS ALEX BROWN'S MR HOLMAN COULD BE A HUGE HOME RUN FOR MOBLEY 9312080126 931208 SOI TO BUY AMERICAN CABINET HIALEAH FLA SOI INDUSTRIES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE AMERICAN CABINET INC FOR 13 MILLION SHARES OF SOI STOCK THE RECORD DATE FOR THE STOCK TRANSACTION IS JAN 1 AN SOI SPOKESMAN SAID IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE SHARES OF SOI CLOSED UNCHANGED AT 325 GIVING THE PROPOSED TRANSACTION AN INDICATED VALUE OF 42 MILLION SOI HAS 103 MILLION COMMON SHARES OUTSTANDING AMERICAN CABINET IS A KITCHEN AND BATHROOM FIXTURES MANUFACTURER BASED IN CONWAY ARK WITH NET INCOME FOR THE FISCAL YEAR ENDED MAY 31 OF 220000 ON SALES OF 206 MILLION SOI A HOLDING COMPANY WITH INTERESTS IN LIGHTING AND VIDEO PRODUCTION SAID THE ACQUISITION WILL HAVE A POSITIVE EFFECT ON EARNINGS 9312080125 931208 WHO'S NEWS UNOCAL'S PRESIDENT IS GIVEN ADDED POST OF CHIEF EXECUTIVE LOS ANGELES UNOCAL CORP PRESIDENT ROGER C BEACH WILL ASSUME THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER NEXT MAY SUCCEEDING RICHARD J STEGEMEIER IN AN EXPECTED MOVE THAT ISN'T LIKELY TO CHANGE THE COMPANY'S RECENT STRATEGY THE COMPANY SAID MR STEGEMEIER WILL REMAIN CHAIRMAN AFTER HE RETIRES AS A COMPANY EMPLOYEE MR BEACH 57 YEARS OLD WHO HAS SERVED AS THE BIG OIL COMPANY'S NO 2 EXECUTIVE SINCE JUNE 1992 WILL RETAIN HIS JOB AS PRESIDENT ANALYSTS SAID THE PERSONNEL CHANGE IS LIKELY TO HAVE LITTLE IMPACT ON UNOCAL'S BUSINESS BECAUSE MR BEACH PLAYED A BIG ROLE IN DRAWING UP ITS LONGTERM STRATEGY AND ALSO HAS TAKEN ON INCREASINGLY MORE RESPONSIBILITY FOR DAYTODAY OPERATIONS AS CHIEF OPERATING OFFICER IN LIGHT OF MR BEACH'S ROLE AND THE WIDESPREAD EXPECTATION THAT HE WOULD BE NAMED CHIEF EXECUTIVE THE TIMING OF THE FORMAL ANNOUNCEMENT BECOMES KIND OF MOOT SAID THOMAS C LEWIS GROUP VICE PRESIDENT OF ENERGY RESEARCH FOR DUFF & PHELPS THE COMPANY SAID THE APPOINTMENT IS EFFECTIVE FOLLOWING THE FIRM'S ANNUAL MEETING NEXT APRIL DURING MR STEGEMEIER'S NEARLY SIXYEAR TENURE AS CHIEF EXECUTIVE THE COMPANY SOLD MORE THAN 2 BILLION OF ASSETS CLOSED UNPROFITABLE OPERATIONS AND LAID OFF NEARLY 10 OF ITS WORK FORCE AFTER SLASHING CAPITAL EXPENDITURES FOR 1992 THE COMPANY BOOSTED SPENDING ON DEVELOPMENT OF OIL AND NATURAL GAS THIS YEAR AND HAS REPORTED GAINS IN OPERATING EARNINGS FOR ALL THREE QUARTERS 9312080124 931208 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB AS HE DEALS WITH THE HORRIFYING POSSIBILITIES THAT COULD FLOW FROM ALLOWING NORTH KOREA TO COMPLETE A NUCLEAR WEAPON RISKS TO AMERICAN SOLDIERS JAPAN AND SOUTH KOREA RACING TO BUILD THEIR OWN NUCLEAR ARMS WAR ON THE KOREAN PENINSULA PRESIDENT CLINTON IS FLIRTING WITH A MORE SUBTLE DANGER HE RISKS CREATING THE IMPRESSION THAT HAVING A HIGHPROFILE NUCLEARWEAPONS PROGRAM IS THE WAY TO WIN ATTENTION AND GOODIES IN THE WORLD TODAY WHATEVER THE OUTCOME OF THE NAILBITING SHOWDOWN WITH NORTH KOREA THAT CAN'T BE THE SIGNAL THE WORLD SENDS TO NUCLEAR WANNABES IN IRAN LIBYA AND PAKISTAN THERE'S NO FOOLPROOF WAY TO AVOID THIS DANGER CARROTS AND STICKS WILL ALWAYS BE NEEDED AND THE TOP PRIORITY FOR NOW IS SIMPLY TO FIGURE SOME COMBINATION THAT WORKS WITH NORTH KOREA'S UTTERLY IRRATIONAL REGIME BUT OVER TIME THERE'S ANOTHER APPROACH THE US AND ITS ALLIES SHOULD START PONDERING ALMOST WITHOUT NOTICE A SMALL BUT GROWING NUMBER OF COUNTRIES SEEM TO HAVE TURNED AWAY FROM THEIR NUCLEAR AMBITIONS SOUTH AFRICA ARGENTINA BRAZIL BELARUS AND SO FAR AT LEAST KAZAKHSTAN IT'S TIME TO FIGURE OUT HOW TO SHOWER BLESSINGS ON SUCH STATES AFTER THEY DO THE RIGHT THING RATHER THAN ON THOSE WHO DO THE WRONG THING AT THE MOMENT THE RISK OF SENDING THE WRONG SIGNAL ARISES FOR TWO REASONS THE FIRST IS THE SHIFTING TONE MR CLINTON HAS USED IN TRYING TO STOP NORTH KOREA'S ILLEGAL NUCLEAR PROGRAM HE HAS TRIED TALKING TOUGH WE HAVE TO BE VERY FIRM ABOUT IT HE SAID ON NOV LATELY HE'S TRIED TALKING SWEETER HE HAS TOLD NORTH KOREA THAT EXPANDED TIES AND INTERNATIONAL AID ARE POSSIBLE IF IT BEHAVES AND WHEN NORTH KOREA THIS WEEK GAVE A CLEARLY INADEQUATE RESPONSE TO DEMANDS IT HONOR ITS COMMITMENT TO ACCEPT INTERNATIONAL NUCLEAR INSPECTIONS MR CLINTON CHOSE TO STRESS THE POSITIVE AT LEAST THEY CAME FORWARD WITH SOME KIND OF RESPONSE THE ADMINISTRATION SAYS IT IS SIMPLY TRYING TO BROADEN OUT ITS DISCUSSIONS WITH NORTH KOREA TO GET AWAY FROM STERILE ARGUMENTS OVER NARROW ISSUES TO A VISION OF THE BROADER RELATIONSHIPS AND RISKS IT'S ALSO CLEAR THAT THE US SIMPLY DOESN'T HAVE ANY GOOD MILITARY OPTIONS EITHER FOR TAKING OUT THE NORTH KOREAN NUCLEAR PROGRAM BY AIR STRIKE OR FOR NEATLY REPELLING A MILITARY MOVE BY A MISCALCULATING NORTH KOREA SO A SHIFT IN TONE IS UNDERSTANDABLE STILL SOME HAVE CONCLUDED THAT GOOD THINGS COME TO THOSE WHO HAVE A BOMB COOKING IN THE OVEN THE SECOND REASON THE US RISKS SENDING THE WRONG SIGNAL LIES HALFWAY AROUND THE GLOBE IN THE NEW NATION OF UKRAINE UKRAINE ISN'T DEVELOPING NUCLEAR WEAPONS RATHER THE COUNTRY INHERITED THEM BY THE HUNDREDS WHEN THE OLD SOVIET UNION DISINTEGRATED AND LEFT ITS ARMS SCATTERED AROUND THE OLD EMPIRE UKRAINE SAYS IT WILL GET RID OF ITS NUKES BUT ITS NATIONALISTIC PARLIAMENT CAN'T BRING ITSELF TO DO IT IT WANTS THREE THINGS COMPENSATION FOR TURNING THE WEAPONS OVER TO RUSSIA AID FROM THE WEST AND AMERICAN SECURITY GUARANTEES ALREADY UKRAINE HAS BEEN OFFERED A PIECE OF A 20YEAR 10 BILLION DEAL IN WHICH THE US WILL TAKE THE HIGHLY ENRICHED URANIUM FROM OLD SOVIET NUCLEAR WEAPONS BUT A SPLIT IN COMPENSATION BETWEEN RUSSIA AND UKRAINE MUST BE WORKED OUT AGAIN IT'S HARD TO ESCAPE THE IMPRESSION THAT REWARDS GO TO THOSE WHO HANG ONTO THEIR NUCLEAR PROGRAMS FOR A WHILE IN UKRAINE THE BUSH ADMINISTRATION WAS MORE AT FAULT IN CREATING THAT IMPRESSION THAN IS THE CLINTON ADMINISTRATION AS THE SOVIET UNION COLLAPSED THE BUSH STATE DEPARTMENT FAWNED OVER THE FORMER SOVIET REPUBLICS THAT HAD NUCLEAR ARMS ON THEIR SOIL WHILE GIVING SCANT ATTENTION TO THE NONNUCLEAR ONES THE LESSON WASN'T LOST IN THE REGION THE TICKET TO ATTENTION IS NUCLEAR WEAPONS THE LINE BETWEEN INCENTIVES AND BRIBES IN THE NONPROLIFERATION GAME WILL ALWAYS BE A THIN ONE BUT ONE THING THE US AND THE REST OF THE INTERNATIONAL COMMUNITY COULD DO TO ESCAPE THAT GRAY AREA WOULD BE TO SHOW THAT IN ALL ITS WORRYING ABOUT THOSE WHO DO WRONG THE WORLD WON'T FORGET THOSE WHO DO RIGHT PRESIDENT CLINTON IS ON THAT TRACK WITH BELARUS THE TINY FORMER SOVIET REPUBLIC THAT HAS DUTIFULLY GIVEN UP THE 76 NUCLEAR WARHEADS IT INHERITED AMERICAN AID IS OPENING UP AND MR CLINTON PLANS TO STOP IN MINSK WHEN HE'S IN THE REGION NEXT MONTH THE WHITE HOUSE SAYS THOSE ARE GOOD GESTURES IN DEALING WITH THE CURRENT NORTH KOREAN CRISIS THE BROADER TASK IS TO SHOW THAT PYONGYANG IS BEING OFFERED INCENTIVES NOT BRIBES SEN JOHN GLENN AN OHIO DEMOCRAT AND LONGTIME STICKLER ON NONPROLIFERATION WARNS A LOT OF THOSE NATIONS WHO WOULD LIKE TO HAVE NUCLEAR WEAPONS ARE GOING TO LOOK AT HOW WE TREAT NORTH KOREA AND DECIDE WHETHER THEY WANT TO GO AHEAD OR NOT 9312080123 931208 COAL PRODUCERS AND MINERS' UNION REACH LABOR PACT BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE UNITED MINE WORKERS UNION AND MAJOR COAL PRODUCERS REACHED A TENTATIVE LABOR PACT THAT GUARANTEES UNION MEMBERS JOBS IN EXCHANGE FOR RELAXED WORK RULES THE AGREEMENT COMES AFTER A SEVENMONTH STRIKE THAT CAME TO INCLUDE 17700 WORKERS IN SEVEN STATES A MAJOR ISSUE IN THE STRIKE INVOLVED COAL PRODUCERS' INCREASINGLY COMMON PRACTICE OF SETTING UP NONUNION MINES THE UMW SAID ITS MEMBERS WOULD VOTE ON THE CONTRACT WITH THE BITUMINOUS COAL OPERATORS ASSOCIATION BY TUESDAY THE FIVEYEAR PACT WOULD COVER SOME 60000 MINERS THE UNION SAID NEITHER SIDE WOULD DISCLOSE DETAILS OF THE TENTATIVE CONTRACT UMW PRESIDENT RICHARD TRUMKA SAID IN A STATEMENT THAT THE CONTRACT GUARANTEES BETTER WAGES AND PENSIONS WHILE PROTECTING OUR HEALTH CARE AND WORKING CONDITIONS HE ADDED THAT IT INCLUDES THE STRONGEST JOB SECURITY AND JOBOPPORTUNITY GUARANTEES OF ANY NATIONAL BITUMINOUS COAL WAGE AGREEMENT THE PACT IS BELIEVED TO GUARANTEE UNION WORKERS ABOUT 60 OF NEW JOBS MR TRUMKA HAD DEMANDED 100 THE CONTRACT ALSO IS SAID TO INCLUDE MAJOR CHANGES IN WORK RULES UNDER THE NEW PACT MINERS WOULD STILL WORK 40 HOURS A WEEK BUT THEY WOULD NOT BE PAID EXTRA FOR WEEKEND WORK AND THEY COULD BE SCHEDULED FOR AS MUCH AS 10 HOURS A DAY THE PREVIOUS CONTRACT LIMITED THE WORK DAY TO EIGHT HOURS THE WORKRULE CHANGES COULD PUT UNION MINES ON PAR WITH NONUNION OPERATIONS IN TERMS OF PRODUCTIVITY SAID RON MCMAHAN OF RESOURCE DATA INTERNATIONAL A DENVER CONSULTING FIRM THAT TRACKS ENERGY ISSUES FOR COMPANIES THAT WOULD ELIMINATE THE DETRIMENT THAT'S USUALLY ASSOCIATED WITH UNION MINES ADDED RAFAEL A VILLAGRAN AN ANALYST WITH LEHMAN BROTHERS THIS IN TURN COULD DIMINISH A COMPANY'S DESIRE TO OPEN NONUNION MINES AND LEAD TO MORE UNION VICTORIES THE CONTRACT ALSO IS SAID TO INCLUDE WAGE INCREASES CHANGES IN THE COAL WORKERS' HEALTH PLAN AND A BONUS FOR UNION MEMBERS 9312080122 931208 SCHUMER TO INTRODUCE BILL TO LIMIT GUN PURCHASES WASHINGTON REP CHARLES SCHUMER PLANS TO INTRODUCE LEGISLATION THAT WOULD REQUIRE PURCHASERS OF HANDGUNS TO HAVE A BUYER'S CARD AND LIMIT SUCH PURCHASES TO ONE A MONTH UNDER THE PROPOSED LEGISLATION THE CARD WOULD BE ISSUED AFTER AN EXTENSIVE BACKGROUND CHECK INCLUDING A FINGERPRINT SEARCH AND A REVIEW OF AVAILABLE CRIMINAL AND MENTAL HEALTH RECORDS THE PROPOSAL WHICH THE NEW YORK DEMOCRAT PLANS TO ANNOUNCE TODAY WITH JIM AND SARAH BRADY ALSO WOULD OUTLAW GUN SHOWS BY REQUIRING LICENSED GUN DEALERS TO SELL THEIR WARES ONLY AT A PLACE OF BUSINESS LISTED ON THE DEALER'S LICENSE MR SCHUMER CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON CRIME HOPES TO BENEFIT FROM THE MOMENTUM OF THE RECENT PASSAGE OF THE BRADY BILL WHICH IMPOSES A FIVEDAY WAITING PERIOD BEFORE A HANDGUN PURCHASE THAT BILL WAS NAMED AFTER MR BRADY WHO WAS WOUNDED IN AN ASSASSINATION ATTEMPT ON PRESIDENT REAGAN AND WHO WITH HIS WIFE FOUGHT FOR APPROVAL OF THE MEASURE THOUGH PRESIDENT CLINTON HAS SAID A NATIONAL GUN REGISTRATION SYSTEM WHICH THE SCHUMER BILL WOULD PROVIDE SHOULD BE CONSIDERED THE BUYER'S IDENTIFICATION CARD WOULD LIKELY FACE A TOUGH BATTLE IN CONGRESS 9312080121 931208 BUSINESS BRIEF DEERE & CO'S PROFIT JUMPS TO A RECORD FOR FISCAL 4TH PERIOD MOLINE ILL DEERE & CO BUOYED BY IMPROVED SALES OF ITS FARM EQUIPMENT IN NORTH AMERICA REPORTED RECORD PROFIT OF 1095 MILLION OR 141 A SHARE FOR THE FISCAL FOURTH QUARTER ENDED OCT A YEAR EARLIER THE MAKER OF AGRICULTURAL AND INDUSTRIAL EQUIPMENT EARNED 42 MILLION OR FIVE CENTS A SHARE A GAIN OF 268 MILLION FOR ACCOUNTING CHANGES AND TAXRATE BENEFITS BOOSTED EARNINGS IN THE LATEST QUARTER REVENUE ROSE 15 TO 218 BILLION FROM 19 BILLION THE QUARTER'S SHARP IMPROVEMENT IN OPERATING RESULTS REFLECTED BETTER PRICING PRODUCTIVITY IMPROVEMENTS AND THE CONTINUED STRONG CONTRIBUTION FROM FINANCIAL SERVICES SAID CHAIRMAN HANS W BECHERER WORLDWIDE PRODUCTION TONNAGE ROSE 31 FROM A YEAR EARLIER FOR THE FULL YEAR DEERE POSTED A NET LOSS OF 9209 MILLION OR 1191 A SHARE COMPARED WITH EARNINGS OF 374 MILLION OR 49 CENTS A SHARE A YEAR EARLIER RESULTS WERE HURT BY A 111 BILLION CHARGE FOR POSTRETIREMENT BENEFITS AND AN 80 MILLION CHARGE FOR RESTRUCTURING OVERSEAS OPERATIONS BEFORE THE CHARGES AND GAINS DEERE HAD EARNINGS OF 2863 MILLION OR 370 A SHARE REVENUE FOR THE YEAR ROSE 11 TO 775 BILLION FROM 696 BILLION DEERE EXPECTS ITS PRODUCTION TONNAGE IN 1994 TO BE ABOUT 9 ABOVE 1993'S OUTPUT MR BECHERER SAID AND RESULTS FROM EQUIPMENT OPERATIONS ARE EXPECTED TO IMPROVE SIGNIFICANTLY IN 1994 DESPITE THE PROFIT REPORT DEERE SHARES PLUNGED 3375 TO 70375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9312080120 931208 CHANCELLOR RETAINS ADVISERS BOSTON CHANCELLOR CORP SAID IT HAS RETAINED INVESTMENT ADVISERS TO AID IT IN IDENTIFYING AND EVALUATING VARIOUS FINANCIAL ALTERNATIVES INCLUDING THE POSSIBLE SALE OF THE TRANSPORTATIONEQUIPMENT LEASING COMPANY THE INVESTMENT ADVISERS WERE NOT IDENTIFIED THE COMPANY SAID IT WAS PLEASED WITH THE AMOUNT OF INTEREST SHOWN BY VARIOUS PARTIES ABOUT AN INVESTMENT OPPORTUNITY IN CHANCELLOR 9312080119 931208 MARKETING & MEDIA CANADA MAY CUT ITS TOBACCO TAXES TO CURB SMUGGLING BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN GOVERNMENT SAID IT IS CONSIDERING CUTTING TOBACCO TAXES TO CURB THE HUGE MARKET IN CANADA FOR SMUGGLED CIGARETTES APPEALS FOR A TAX CUT ARE COMING FROM THE TOBACCO INDUSTRY CANADIAN RETAILERS AND THE PROVINCE OF QUEBEC WHERE IT'S ESTIMATED 50 OF CIGARETTE VOLUME IS SMUGGLED THE GOVERNMENT HAS ATTEMPTED TO COMBAT SMUGGLING BY TIGHTENING BORDER CONTROLS AND TOUGHENING PENALTIES FOR THOSE CAUGHT SMUGGLING BUT THE ACTIONS HAVE HAD LITTLE IMPACT ON THE ILLICIT TRADE THAT IS ESTIMATED TO TOTAL MORE THAN 1 BILLION CANADIAN DOLLARS US7562 MILLION ANNUALLY DAVID ANDERSON CANADA'S REVENUE MINISTER SAID YESTERDAY THAT HE WILL CONSULT WITH THE PROVINCES ABOUT THE FEASIBILITY OF A CUT IN FEDERAL AND PROVINCIAL TAXES ON CIGARETTES TOBACCO TAXES HAVE GONE UP SO SHARPLY IN THE LAST THREE OR FOUR YEARS THAT PEOPLE FEEL IT IS VERY MUCH AN OVERTAXED COMMODITY MR ANDERSON SAID THE TAX INCREASES WERE AIMED AT DISCOURAGING SMOKING TAXES ON A PACK OF CANADIAN CIGARETTES ARE ABOUT FIVE TIMES THE AVERAGE US LEVEL A ROLLBACK IN CANADIAN TAXES WOULD LOWER THE DOMESTIC SELLING PRICE FOR CIGARETTES AND REDUCE THE INCENTIVE TO SMUGGLE THE CONTRABAND SMOKES ARE MAINLY CANADIANMADE CIGARETTES THAT ARE EXPORTED TO THE US DUTYFREE AND REROUTED ILLEGALLY TO CANADA WHERE THEY ARE SOLD AT CUTRATE PRICES CIGARETTE EXPORTS IN THE FIRST 10 MONTHS OF THIS YEAR TOTALED 145 BILLION UP 85 FROM THE YEAR EARLIER MOST OF THE EXPORTS ARE BELIEVED TO HAVE BEEN SOLD ILLEGALLY IN CANADA ILLEGAL CIGARETTE SALES HAVE CAUSED HEAVY TAX LOSSES FOR CANADA'S FEDERAL AND PROVINCIAL GOVERNMENTS ONE INDUSTRY SPONSORED STUDY ESTIMATED THAT FEDERAL AND PROVINCIAL GOVERNMENTS INCURRED LOSSES TO SMUGGLING IN 1992 OF A COMBINED C16 BILLION SOME PROVINCES PARTICULARLY QUEBEC HAVE URGED THE FEDERAL GOVERNMENT TO ROLL BACK TOBACCO TAXES AT A RECENT MEETING OF FEDERAL AND PROVINCIAL FINANCE MINISTERS MONIQUE GAGNONTREMBLAY QUEBEC'S FINANCE MINISTER SAID QUEBEC WOULD REDUCE ITS PROVINCIAL TOBACCO TAXES UNILATERALLY IF THE OTHER PROVINCES WEREN'T WILLING TO PARTICIPATE IN A FEDERALPROVINCIAL TAXREDUCTION PLAN SUCH A MOVE WOULD LOWER CIGARETTE PRICES IN QUEBEC AND ENCOURAGE SMOKERS IN NEIGHBORING PROVINCES TO BUY CIGARETTES THERE HEALTH GROUPS ARE OPPOSED TO A TAX CUT THE CANADIAN NONSMOKERS' RIGHTS ASSOCIATION A LOBBY GROUP SAID A REDUCTION IN TOBACCO LEVIES WILL FURTHER REDUCE GOVERNMENT TAX REVENUE AND LEAD TO AN INCREASE IN TOBACCO CONSUMPTION NEW BRUNSWICK PROVINCE LOWERED PROVINCIAL TOBACCO LEVIES TWO YEARS AGO TO COMBAT SMUGGLING ALLAN MAHER THE PROVINCE'S FINANCE MINISTER SAID THE REDUCTION DROVE UP TOBACCO CONSUMPTION IN THE PROVINCE BUT DIDN'T RECAPTURE LOST REVENUE 9312080118 931208 WHO'S NEWS FREQUENCY ELECTRONICS RESHUFFLES MANAGERS TO KEEP DEFENSE JOBS MITCHEL FIELD NY WORRIED THAT A FEDERAL INDICTMENT WILL JEOPARDIZE ITS 32 MILLION BUSINESS RELATIONSHIP WITH THE DEFENSE DEPARTMENT FREQUENCY ELECTRONICS INC ANNOUNCED A RESHUFFLING OF FOUR TOP EXECUTIVES CHARGED WITH CONTRACT FRAUD THE HIGHTECHNOLOGY DEFENSE CONTRACTOR SAID MARVIN BLOCH VOLUNTARILY RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER TOOK A LEAVE OF ABSENCE AS PRESIDENT AND AGREED TO LIMIT HIS ACTIVITIES ON THE COMPANY'S BOARD HE WILL SERVE AS THE COMPANY'S CHIEF SCIENTIST AND WILL BE SUCCEEDED BY BOARD MEMBER GEN JOSEPH P FRANKLIN AS CHAIRMAN AND CHIEF THE OFFICE OF PRESIDENT WILL REMAIN VACANT A FEDERAL GRAND JURY LAST MONTH INDICTED FREQUENCY AND FOUR SENIOR MANAGERS ON 18 COUNTS OF CONTRACT FRAUD IN CONNECTION WITH MORE THAN 5 MILLION IN CLAIMS SUBMITTED ON SIX DEFENSE DEPARTMENT CONTRACTS GEN FRANKLIN SAID THAT ABRAHAM LAZAR A DIRECTOR AND RETIRED OFFICER OF THE COMPANY WILL CEASE TO PARTICIPATE IN BOARD MEETINGS PENDING THE OUTCOME OF THE INDICTMENT THE TWO OTHER INDICTED OFFICIALS HARRY NEWMAN TREASURER AND MARVIN NORWORTH CONTRACTS MANAGER WILL WORK FOR ONE OF FREQUENCY'S SUBSIDIARIES THE COMPANY EARLIER CALLED THE CHARGES WHOLLY UNJUSTIFIED SAYING IT INTENDS TO VIGOROUSLY CONTEST THEM TYPICALLY THE DEFENSE DEPARTMENT SUSPENDS AN INDICTED COMPANY AND BARS IT FROM GETTING ANY NEW GOVERNMENT CONTRACTS WE FELT IF WE MADE THESE PERSONNEL CHANGES WE COULD LIMIT THE IMPACT OF ANY TEMPORARY SUSPENSION SAID GEN FRANKLIN A DEFENSE DEPARTMENT SPOKESMAN DECLINED COMMENT 9312080117 931208 ALTA ENERGY TO ACQUIRE STAKE DENVER ALTA ENERGY CORP SAID IT WILL ACQUIRE THE REMAINING 5 OF SOCORRO PETROLEUM CO THAT IT DOESN'T OWN IN EXCHANGE FOR 185868 NEWLY ISSUED ALTA SHARES ALTA AN OIL AND NATURAL GAS COMPANY SAID IT HAD 3739707 COMMON SHARES OUTSTANDING PRIOR TO THE TRANSACTION THE 5 INTEREST IS OWNED BY AN ALTA DIRECTOR 9312080116 931208 INTERNATIONAL AIRBUS IS AWARDED 801 MILLION ORDER BY CATHAY AIR A WALL STREET JOURNAL ROUNDUP EUROPE'S AIRBUS INDUSTRIE CONSORTIUM WON AN 801 MILLION ORDER FOR SIX LONGHAUL JETS FROM CATHAY PACIFIC AIRWAYS FORMERLY A LOYAL BOEING CO CUSTOMER THE TYPE OF PLANE ORDERED THE 260SEAT A340300 COMPETES WITH THE BOEING 777B A BOEING SPOKESMAN IN SEATTLE CONFIRMED THE COMPANY HAD FOUGHT EXTREMELY HARD TO AVERT THE ADDITIONAL ORDERS GOING TO THE EUROPEAN CONSORTIUM WHICH IS COMPOSED OF AEROSPATIALE OF FRANCE THE DEUTSCHE AIRBUS UNIT OF DAIMLERBENZ AG BRITISH AEROSPACE PLC AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN JOHN BAILEY ASIA EDITOR FOR FLIGHT INTERNATIONAL AN AVIATION INDUSTRY WEEKLY TERMED THE ORDER A VERY SIGNIFICANT BREAKTHROUGH FOR AIRBUS CATHAY SAT ON THE DESIGN COMMITTEE OF THE 777 HE ADDED IN 1992 CATHAY PLACED FIRM ORDERS FOR 11 BOEING 777AS AND TOOK OPTIONS ON 11 777BS WHICH HAVE A LONGER RANGE AN INDIVIDUAL CLOSE TO CATHAY SAID THE AIRLINE NOW IS UNLIKELY TO EXERCISE ITS OPTIONS ON THE 777BS IT'S VERY UNLIKELY YOU'D HAVE BOTH A340S AND 777BS THE INDIVIDUAL SAID THEY PRETTY MUCH SERVE THE SAME PURPOSE CATHAY WHOSE FLEET CONSISTS OVERWHELMINGLY OF BOEING AIRCRAFT HAS TAKEN OPTIONS ON AN ADDITIONAL EIGHT A340300S AN AIRLINE SPOKESMAN SAID IT ALSO HAS FIRM ORDERS FOR 10 A330S TO BE DELIVERED BY THE END OF 1996 CATHAY CHAIRMAN PETER SUTCH SAID THE A340 AIRCRAFT WOULD ENABLE THE HONG KONGBASED CARRIER TO OFFER MORE NONSTOP SERVICE BETWEEN THE COLONY AND EUROPE RECENTLY A COMMITTEE AT CATHAY RECOMMENDED THAT A SINGLE AIRCRAFT BE DEDICATED TO LONG NONSTOP ROUTES WITH RELATIVELY LOW PASSENGER LOADS AS PART OF THE AIRLINE'S DRIVE FOR EFFICIENCY AND COST CUTS THE PROBLEM FOR BOEING IS THAT THE 777BS WOULDN'T BE AVAILABLE TO CATHAY UNTIL THE END OF THE DECADE IT'S A QUESTION OF TIMING SAID CATHAY'S CHIEF SPOKESMAN PHIL BURFORD THERE'S NO SIMILAR BOEING AIRCRAFT AVAILABLE AT THE MOMENT UNDER THE AGREEMENT WITH AIRBUS CATHAY WILL LEASE FOUR A340200S A MODEL SIMILAR TO THE 300S IN OCTOBER 1994 THEY WILL BE REPLACED BY THE PURCHASED AIRCRAFT STARTING IN MID1996 THE LEASED AIRCRAFT WERE ORIGINALLY ORDERED BY PHILIPPINE AIRLINES WHICH DEFERRED THEIR DELIVERY AIRBUS HAS BEEN TRYING HARD TO ELBOW ITS WAY INTO ASIA CURRENTLY REGARDED AS THE MOST PROMISING AVIATION MARKET IN THE WORLD LAST MONTH IT RECEIVED A 700 MILLION CHINESE ORDER FOR SIX A340 JETS THE A340S EACH WILL BE EQUIPPED WITH FOUR ENGINES FROM CFMINTERNATIONAL SA A JOINT VENTURE BETWEEN GENERAL ELECTRIC CO OF THE US AND SNECMA OF FRANCE THE ENGINE ORDER IS A BLOW TO ROLLSROYCE PLC WHICH PROVIDE ENGINES FOR THE BOEING 777S 9312080115 931208 ECONOMY LATE PAYMENTS ON MORTGAGES AT 19YEAR LOW HOMEOWNERS WERE HELPED BY LOW INTEREST RATES 3RDQUARTER DATA SHOW BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL LATE PAYMENTS ON RESIDENTIAL MORTGAGES HAVE PLUNGED TO THE LOWEST LEVEL IN 19 YEARS INDICATING THAT HOMEOWNERS CONTINUE TO BENEFIT FROM HISTORICALLY LOW INTEREST RATES INSTALLMENTS PAST DUE BY 30 DAYS OR MORE ON ONETOFOURUNIT RESIDENTIAL MORTGAGES FELL TO 421 OF ALL SUCH LOANS IN THE THIRD QUARTER DOWN FROM 439 IN THE SECOND QUARTER ACCORDING TO A SURVEY BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA THAT IS THE LOWEST LEVEL SINCE THE THIRD QUARTER OF 1974 DELINQUENCIES HIT A RECESSIONARY PEAK OF 526 IN THE SECOND QUARTER OF 1991 AND HAVE BEEN FALLING AND RISING SINCE THEN ON A DECLINING TRAJECTORY SINCE THE SECOND HALF OF 1992 GRADUAL GAINS IN EMPLOYMENT AND LOWER INTEREST RATES HAVE HELPED REDUCE DELINQUENCIES EVEN THOUGH DELINQUENCIES TICKED UP SOMEWHAT IN THE FIRST HALF OF THIS YEAR MANY HOMEOWNERS CONTINUE TO TAKE ADVANTAGE OF RATES HOVERING AT A QUARTERCENTURY LOW TO CUT THEIR MONTHLY PAYMENTS DELINQUENCIES IN ALL REGIONS AND IN ALL CATEGORIES OF LOANS SHOWED IMPROVEMENT WITH THE ROARING HOUSING MARKETS OF THE MIDWEST AND SOUTH LEADING THE WAY WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION SAID THE DECLINE IS YET ANOTHER SIGN THAT THE ECONOMY CONTINUES TO IMPROVE FOR ONCE IT'S STRAIGHTFORWARD ACROSSTHEBOARD GOOD NEWS HE SAID IF THERE WAS ANY SURPRISE IT WAS IN THE SIZE OF THE IMPROVEMENT MR LASKO SAID THAT WITH EMPLOYMENT CONTINUING TO RISE DELINQUENCIES COULD FALL EVEN FARTHER PERHAPS TO AS LOW AS 4 THE ONLY CLOUD IN THE PICTURE IS CALIFORNIA HE SAID ONLY TWO STATES POSTED YEAROVERYEAR INCREASES IN DELINQUENCIES CALIFORNIA'S DELINQUENCIES ROSE TO 409 IN THE THIRD QUARTER FROM 389 IN THE YEAREARLIER QUARTER AND PENNSYLVANIA'S CLIMBED TO 503 FROM 487 FORECLOSURES ALSO FELL NATIONALLY ALTHOUGH THEY CONTINUED TO RISE IN THE WEST AND NORTHEAST THE PERCENTAGE OF LOANS IN FORECLOSURE GREW IN CALIFORNIA 126 IN THE THIRD QUARTER FROM 122 IN THE SECOND QUARTER AND IN NEW YORK JUMPED TO 167 FROM 155 IT'S NOT A SIGN THAT THINGS ARE GETTING WORSE BUT THINGS ARE CATCHING UP WITH THE INEVITABLE MR LASKO SAID NOTING THAT FORECLOSURES ARE A LAGGING INDICATOR OF HOW THE ECONOMY IS DOING NEVERTHELESS SOME ANALYSTS CAUTION THAT THE DIVE IN DELINQUENCIES DOESN'T NECESSARILY MEAN THE ECONOMY IS HEATING UP BUT ONLY THAT PEOPLE ARE CLEARING UP THEIR PERSONAL BALANCE SHEETS AND TAKING ADVANTAGE OF LOW INTEREST RATES I DON'T THINK IT'S A SYMPTOM OF AN IMPROVING ECONOMY SAID TODD ZIMMERMAN AN ANALYST WITH ZIMMERMAN ASSOCIATES IN CLINTON NJ EVERYBODY'S HUNKERED DOWN REFINANCING PUTTING THEIR CREDIT CARDS IN THEIR DRAWERS IT'S JUST THE LATEST SIGN OF A LONG BELTTIGHTENING 9312080114 931208 INTERNATIONAL FERRUZZI'S MONTEDISON UNIT FACES ADDITIONAL CHARGES MILAN INVESTIGATORS OPENED ANOTHER CHAPTER IN THE MONTEDISON SPA CORRUPTION PROBE CHARGING THAT AN ADDITIONAL 500 BILLION LIRE 297 MILLION MAY HAVE BEEN SIPHONED OFF FROM THE CHEMICAL GIANT BETWEEN 1984 AND 1986 POLICE ARRESTED MARIO SCHIMBERNI THE 70YEAROLD FORMER MONTEDISON CHAIRMAN ON CHARGES OF MAKING FALSE FINANCIAL DISCLOSURES AND ILLEGAL PROFIT DISTRIBUTION DURING HIS 19801987 TENURE MONTEDISON IS THE MAIN OPERATING UNIT OF FERRUZZI FINANZIARIA SPA MILAN PROSECUTORS PREVIOUSLY ARRESTED FORMER TOP MANAGERS AND FAMILY MEMBERS OF THE FERRUZZIMONTEDISON GROUP ON CHARGES OF ILLEGALLY SIPHONING OFF SOME 435 BILLION LIRE TO COVER POLITICAL BRIBES AND LOSSES STEMMING FROM A FAILED ATTEMPT TO CORNER THE SOYBEAN MARKET IN CHICAGO RAUL GARDINI WHO SUCCEEDED MR SCHIMBERNI AS CHAIRMAN COMMITTED SUICIDE IN JULY SHORTLY AFTER HE WAS IMPLICATED IN ITALY'S CORRUPTION SCANDAL SEPARATELY PROSECUTORS ALSO ARRESTED ALESSANDRO PATELLI FORMER TREASURER OF THE FEDERALIST NORTHERN LEAGUE PARTY FOR ALLEGEDLY ACCEPTING 200 MILLION LIRE IN ILLEGAL CAMPAIGN CONTRIBUTIONS FROM MONTEDISON STATE TELEVISION REPORTED 9312080113 931208 WORLD MARKETS PRICES END MIXED IN BIGGEST BOURSES BUT RALLY IN SOME ASIANPACIFIC MARKETS TO RECORD HIGHS A WALL STREET JOURNAL ROUNDUP STOCK PRICES FINISHED MIXED TUESDAY IN TOKYO AND IN LONDON AND FRANKFURT AS EUROPEAN BOURSES PUT IN A LACKLUSTER PERFORMANCE AS NEGOTIATIONS ON A WORLD TRADE PACT CONTINUED TOKYO DEALINGS WERE EXTREMELY THIN AS INVESTORS CONTINUED TO AWAIT SIGNS OF JAPANESE GOVERNMENT MEDICINE FOR THE ANEMIC ECONOMY AS WELL AS ECONOMIC DATA LATER THIS WEEK BUT AMONG OTHER ASIAN AND PACIFIC EXCHANGES RALLIES PUSHED STOCKS UP TO RECORDS IN HONG KONG SINGAPORE MANILA AND BANGKOK WHILE SYDNEY PRICES SCORED SOLID GAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10972 UP 038 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 19793 UP 884 OR 47 WITH KUMPULAN GUTHRIE OF MALAYSIA POSTING A 13 GAIN IN ITS LOCAL CURRENCY PIPELINE STOCKS TRAILED AT 13254 DOWN 228 OR 17 WITH ENRON OF THE US SLIDING 33 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUNGED 61897 POINTS MONDAY ROSE 6311 TO 1690349 BUT LOSERS OUTNUMBERED GAINERS 536455 IN TOKYO WEDNESDAY THE NIKKEI INDEX FELL 41114 POINTS TO CLOSE THE MORNING SESSSION AT 1649235 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A THIN 220 MILLION SHARES LITTLE CHANGED FROM 2215 MILLION SHARES A DAY EARLIER THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SANK 4625 POINTS MONDAY ROSE 675 TO 142061 ARBITRAGE AND OTHER INDEXLINKED DEALINGS ACCOUNTED FOR MOST OF THE TOKYO ACTIVITY BIG INSTITUTIONAL INVESTORS WERE MOSTLY INACTIVE GIVEN THE UNCERTAINTY ABOUT ANY GOVERNMENTSTIMULUS STEPS AND QUESTIONS ABOUT A POSSIBLE JAPANESE DISCOUNTRATE CUT THE NIKKEI ROSE EARLY IN THE SESSION AS ARBITRAGERS COVERED SHORT OR OVERSOLD POSITIONS STAKED A DAY EARLIER IN A STRATEGY BASED ON FURTHER MARKET DECLINES AND INVESTMENT TRUSTS BOUGHT SHARES IN A NEW 300STOCK INDEX BUT THEN THE NIKKEI BOUNCED UP AND DOWN WITH THE MOVES EXAGGERATED BY THE LIGHT VOLUME LATE IN THE DAY THE BANK OF JAPAN GOVERNOR INDICATED THE CENTRAL BANK WON'T LOOSEN MONETARY POLICY SOON AND THE COMMENTS SENT THE NIKKEI DOWN FROM ITS HIGHS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FINISHED UNCHANGED AT 32373 THE FT 30STOCK INDEX FELL 86 POINTS TO 24298 VOLUME WAS 6897 MILLION SHARES COMPARED WITH 6019 MILLION SHARES A DAY EARLIER THE FT 100 SPENT MOST OF THE DAY MODERATELY LOWER BEFORE A LATE BUYING WAVE PULLED IT OUT OF NEGATIVE TERRITORY WORRIES ABOUT THE NEGOTIATIONS FOR LIBERALIZED WORLDTRADE RULES UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE PERMEATED THE MARKET PROVIDING AN EXCUSE TO SNAG PROFITS AS OPTIMISM AT THE BOURSE REMAINED HIGH AND INVESTORS FOUND LITTLE FUNDAMENTAL REASON TO SELL EXPECTATIONS THAT BRITAIN WILL LOWER ITS BASE LENDING RATE PERHAPS NEXT MONTH FUELED BUYING IN SOME SECTORS SUCH AS BANKS AND BUILDING COMPANIES IN FRANKFURT THE DAX 30STOCK INDEX FELL 334 POINTS TO 211546 NEAR THE DAY'S LOW OF 201370 ON LIGHT VOLUME LAST WEEK'S MOMENTUM WOUND DOWN AS THE MARKET BEGAN TO SEEK A NEW DIRECTION THE EFFORT FOR A GATT ACCORD INFLUENCED THE MARKET'S MOOD SOMEWHAT AS ALTERNATING WAVES OF POSITIVE AND LESS POSITIVE NEWS EMERGED FROM THE BRUSSELS NEGOTIATIONS IN PARIS STOCKS WEAKENED AS DISCOURAGED PARTICIPANTS TOOK PROFITS AFTER EXPECTED AGREEMENT BY US AND EUROPEAN COMMUNITY NEGOTIATORS ON A GATT ACCORD WAS DELAYED FOLLOWING AN OVERNIGHT MARATHON AN ACCORD WAS HELD UP BY ISSUES RAISED LARGELY BY THE FRENCH IN MILAN EQUITIES ROSE ON RENEWED FOREIGN BUYING AND INCREASED CONFIDENCE IN PASSAGE OF ITALY'S 1994 BUDGET AS WELL AS THE MARKET'S TECHNICAL DEADLINES EARLY NEXT WEEK IN MADRID SHARE PRICES EDGED HIGHER IN A SHOWING THAT WAS STRONGER THAN EXPECTED BETWEEN HOLIDAY CLOSURES OF THE MARKET MONDAY AND TODAY IN STOCKHOLM PRICES CLIMBED 14 IN A BROADBASED RALLY LIFTED BY A SHARP GAIN FOR VOLVO WHICH HAD LAGGED BEHIND THE MARKET'S PACE SINCE LAST WEEK'S FAILED MERGER WITH RENAULT OF FRANCE VOLVO SHARES SOARED 26 SWEDISH KRONOR OR 6 TO 461 KRONOR 5555 A REVERSAL AFTER PROFITTAKING BY INVESTORS WHO HAD FAVORED THE TWO AUTO MAKERS' COMBINATION THE STOCK HAD CLIMBED 17 IN THE WEEK BEFORE THE MERGER WAS CALLED OFF IN ZURICH STOCKS EASED AFTER PROFITTAKING WIPED OUT EARLY STRENGTH IN SYDNEY SHARES ROSE ABOUT 1 BOOSTED BY A RALLY IN STOCKINDEX FUTURES CONTRACTS AND BUYING SUPPORT FOR NATURAL RESOURCE METAL AND MINERAL ISSUES IN ANTICIPATION OF HIGHER WORLD COMMODITY PRICES AND BECAUSE OF STRONG BASEMETAL PRICES IN LONDON IN HONG KONG SHARES RALLIED 13 TO A RECORD FINISH TOPPING THE HIGH SET NOV 15 AND MARKING THE THIRD CONSECUTIVE GAIN EVEN AFTER LATE PROFITTAKING SLASHED MORE THAN HALF THE SESSION'S EARLY GAINS THE MAIN INDEX HAS CLIMBED 54 SINCE LAST FRIDAY THE BULLISHNESS WAS FUELED BY BUYING OF HONG KONG SHARES POPULAR IN LONDON TRADING AND BY STRONG DECEMBER HANG SENG INDEX FUTURES THE MARKET DISCOUNTED POLITICAL JITTERS SPARKED BY THE LATEST IMPASSE IN SINOBRITISH RELATIONS OVER THE BRITISH COLONY'S PROPOSED WIDENING OF DEMOCRACY INVESTORS WERE MORE OPTIMISTIC ABOUT ECONOMIC GROWTH IN HONG KONG REFLECTING CHINA'S PROSPERITY IN SINGAPORE AFTER A DOWNTURN IN THE PREVIOUS SESSION THE MARKET WAS REVIVED BY BLUECHIP BUYING WHICH HELPED PROPEL THE BENCHMARK INDEX UP TO A RECORD HONG KONG AND US FUNDS BOUGHT HEAVILY ON SINGAPORE'S ECONOMIC AND CORPORATE FUNDAMENTALS IN MANILA SHARES SOARED 31 TO A RECORD IN HECTIC TRADING IN TAIPEI EQUITIES FELL ON PROFITTAKING AFTER THE MARKET'S MAIN INDEX HAD RISEN 81 IN FIVE CONSECUTIVE SESSIONS IN SEOUL STOCKS SLIPPED ON WIDESPREAD SENTIMENT THAT THE MARKET LACKED ENERGY FOR FURTHER ADVANCES BUT IN BANGKOK STOCKS SHOT UP 47 TO A RECORD FINISH THE SET INDEX RALLIED 6515 POINTS TO 144256 WHICH REPRESENTS A 61 JUMP FOR THIS YEAR 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 9312080112 931208 LAW LEGAL BEAT XEROX AGREES TO ISSUE CERTIFICATES IN ORDER TO SETTLE ANTITRUST SUIT BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL XEROX CORP AGREED TO A 225 MILLION SETTLEMENT OF A CLASSACTION ANTITRUST SUIT ALLEGING THAT IT SUPPRESSED COMPETITION IN THE SALE AND SERVICE OF PARTS FOR HIGHVOLUME PHOTOCOPIERS AND PRINTERS PLAINTIFFS' LAWYERS IN THE CASE SAID THE AGREEMENT IS STILL SUBJECT TO COURT APPROVAL IT IS THE FIRST MAJOR ANTITRUST SETTLEMENT REACHED SINCE A US SUPREME COURT DECISION AGAINST EASTMAN KODAK CO LAST YEAR MADE IT EASIER FOR LARGE MANUFACTURERS TO BE SUED FOR LOCKING OUT SMALLER COMPANIES THAT WANT TO OFFER REPAIR SERVICES AND SELL SPARE PARTS THE SETTLEMENT INVOLVING ALLEGATIONS SIMILAR TO THE KODAK CASE WILL REQUIRE XEROX TO ISSUE 225 MILLION IN TRANSFERABLE CERTIFICATES TO MORE THAN 200 INDEPENDENT SERVICE OPERATORS AND 25000 XEROX CUSTOMERS THE CERTIFICATES WILL ALLOW FOR THE PURCHASE OF XEROX PRODUCTS ULTIMATELY FUNNELING THE COMPANY'S EXPENDITURES IN THE SETTLEMENT BACK TO ITSELF HOW MUCH THE SETTLEMENT ACTUALLY WILL COST THE COMPANY ISN'T CLEAR THE CUSTOMERS ARE INCLUDED BECAUSE OF THE HIGHER AMOUNTS THEY ALLEGEDLY ENDED UP PAYING FOR REPAIRS AND PARTS A SPOKESMAN FOR XEROX DECLINED TO COMMENT AND SAID THE COMPANY WOULD ISSUE A STATEMENT TODAY AFTER FILING NECESSARY DISCLOSURE PAPERS WITH THE SECURITIES AND EXCHANGE COMMISSION PLAINTIFFS' LAWYERS SAID THE SETTLEMENT WAS LARGELY BROUGHT ABOUT BY THE SUPREME COURT'S KODAK DECISION WHICH SHARPLY LIMITED THE LEGAL JUSTIFICATIONS THAT A COMPANY MAY OFFER FOR ANTICOMPETITIVE PRACTICES THIS AND XEROX'S LARGE POSSIBLE EXPOSURE IN THIS CASE WERE IMPORTANT FACTORS IN PERSUADING XEROX TO REACH THIS SETTLEMENT SAID STEPHEN BERRY OF WASHINGTON LAW FIRM BERRY & LEFTWICH MR BERRY AND DALLAS ATTORNEY MIKE MCKOOL HANDLED THE CASE FOR PLAINTIFFS THE CASE IS PENDING IN FEDERAL COURT IN MARSHALL TEXAS THE PLAINTIFFS ALLEGED THAT XEROX REFUSED TO SELL PARTS TO INDEPENDENT OPERATORS FOR THE SALE AND SERVICE OF HIGHVOLUME COPIERS AND PRINTERS IN THE US ACCORDING TO CANNATA REPORT AN INDUSTRY NEWSLETTER 30 OF THE 18 BILLION COPIER INDUSTRY'S REVENUE COMES FROM SERVICE CONTRACTS PLAINTIFFS ALLEGED THAT XEROX'S ATTEMPT TO LOCK OUT THE INDEPENDENT OPERATORS AND MONOPOLIZE THE MARKET ALLOWED THE COMPANY TO OVERCHARGE FOR ITS HIGHVOLUME EQUIPMENT PARTS AND SERVICE BY 10 TO 15 THE TRANSFERABLE CERTIFICATES TO BE PAID OUT UNDER THE SETTLEMENT WILL BE NEGOTIABLE MEANING THAT THEY CAN BE CASHED IN THROUGH BROKERS WHO CAN IN TURN RESELL THEM OR TURN THEM IN FOR XEROX PARTS AND SOFTWARE SAID A PERSON CLOSE THE SETTLEMENT WHO ASKED NOT TO BE IDENTIFIED SEVERAL HUGE CLASSACTION SUITS HAVE BEEN SETTLED IN A SIMILAR WAY LAST MARCH A FEDERAL JUDGE APPROVED A SETTLEMENT IN WHICH THE NATION'S BIGGEST AIRLINES AGREED TO PAY 458 MILLION IN TRAVEL COUPONS TO SETTLE ALLEGATIONS THAT THEY USED A COMPUTERIZED SYSTEM TO MUTUALLY RAISE TICKET PRICES THE COUPONS WERE GOOD FOR DISCOUNTS ON FUTURE TRAVEL SIMILARLY GENERAL MOTORS CORP AGREED EARLIER THIS YEAR TO ISSUE 1000 COUPONS THAT COULD BE USED TOWARD THE PURCHASE OF NEW GM TRUCKS TO SIX MILLION OWNERS OF PICKUPS WITH ALLEGEDLY FIREPRONE SIDEMOUNTED GAS TANKS THAT AGREEMENT IS AWAITING APPROVAL OF A FEDERAL JUDGE IN PHILADELPHIA SUCH ARRANGEMENTS HAVE WORKED AS AN INCENTIVE FOR CORPORATE DEFENDANTS TO SETTLE BECAUSE AT LEAST PART OF WHAT THEY PAY OUT RETURNS TO THE COMPANY IN THE FORM OF SALES THUS MAKING THE SETTLEMENTS LESS COSTLY THAN PAYING CASH THE XEROX SETTLEMENT HOWEVER DIFFERS SUBSTANTIALLY FROM THE OTHERS BECAUSE THE CERTIFICATES CAN BE SOLD FOR CASH CLAIMANTS WILL BE USING THEM BASICALLY LIKE MONEY SAID THE PERSON CLOSE TO THE SETTLEMENT WHO ASKED NOT TO BE IDENTIFIED THE AGREEMENT ALSO REQUIRES XEROX TO PROVIDE INDEPENDENT SERVICE OPERATORS FUTURE ACCESS TO XEROX PARTS AND SOFTWARE FOR THE HIGHVOLUME COPIERS AND PRINTERS THE PLAINTIFFS' LAWYERS SAID IT WAS XEROX'S REFUSAL TO GRANT THIS ACCESS THAT LED TO THE LAWSUIT A PENDING SUIT AGAINST KODAK ANOTHER GIANT IN THE HIGHSPEED COPIER MARKET INVOLVES SIMILAR ALLEGATIONS KODAK ADOPTED A POLICY IN 1985 OF REFUSING TO SELL REPLACEMENT PARTS TO CUSTOMERS UNLESS THEY PROMISED NOT TO HAVE THEIR EQUIPMENT SERVICED BY INDEPENDENT OPERATORS TO GET AROUND THAT BAN INDEPENDENTS HAVE HAD TO POSE AS CUSTOMERS MAKE DO WITH LESSER QUALITY PARTS OR BUY PARTS FROM COPIER DEALERS WILLING TO VIOLATE THEIR AGREEMENTS NOT TO RESELL THAT SUIT BROUGHT BY 18 SERVICE OPERATORS IN 1987 ACCUSED KODAK OF VIOLATING FEDERAL ANTITRUST LAW BY LINKING THE SALE OF PARTS TO THE SALE OF SERVICE THE US SUPREME COURT RULED LAST YEAR THAT THE SERVICE COMPANIES HAD PRODUCED SUFFICIENT EVIDENCE OF WRONGDOING TO PROCEED TO TRIAL SEPARATELY XEROX CONFIRMED THAT IT AGREED TO A 217 MILLION SETTLEMENT WITH SUNRISE SYSTEMS INC TO SETTLE A LAWSUIT ACCUSING XEROX OF BREACH OF CONTRACT AND FAILURE TO ACT IN GOOD FAITH A FEDERAL JUDGE IN DALLAS LAST YEAR ENTERED A 234 MILLION JUDGMENT AGAINST XEROX IN THE CASE AFTER A JURY VERDICT FOR SUNRISE SUNRISE WAS A DALLAS COMPUTER COMPANY FOUNDED BY FIVE FORMER XEROX EMPLOYEES IN 1981 TO DEVELOP NOTEBOOK COMPUTERS FOR XEROX THE COMPANY ALLEGED THAT IT WAS FORCED INTO BANKRUPTCYPROCEEDINGS IN 1984 AFTER XEROX ENDED ITS CONTRACT WITH THE COMPANY AND REFUSED TO PAY A 13 MILLION TERMINATION FEE THE SETTLEMENT IS SUBJECT TO FINAL APPROVAL BY A BANKRUPTCY COURT IN DALLAS A KEY PROSECUTION WITNESS IN THE WORLD TRADE CENTER BOMBING TRIAL IDENTIFIED TWO JURORS INSTEAD OF ANY OF THE DEFENDANTS AS RESEMBLING THE MEN HE SAW HOURS BEFORE THE BLAST THE WITNESS GAS STATION ATTENDANT WILLIE HERNANDEZ MOOCH OF JERSEY CITY NJ WAS EXPECTED TO BE AN IMPORTANT COG IN THE GOVERNMENT'S CASE TYING AT LEAST TWO OF THE FOUR DEFENDANTS TO THE YELLOW RENTAL VAN THAT INVESTIGATORS CONTEND CARRIED THE BOMB INTO THE GARAGE BENEATH THE TWIN SKYSCRAPERS BUT ASKED TO DESCRIBE PASSENGERS IN AN EARLY MORNING CARAVAN THAT INCLUDED THE VAN MR MOOCH ON TWO OCCASIONS GLANCED AT THE FOUR DEFENDANTS DRESSED NEATLY IN SUITS AND TIES AND SEATED NEXT TO THEIR LAWYERS AND THEN POINTED TO A CASUALLY DRESSED JUROR SAYING IT WAS A PERSON LIKE THAT ONE THE ERRONEOUS IDENTIFICATIONS ARE UNLIKELY TO PROVIDE A MAJOR SETBACK TO THE PROSECUTION WHICH HAS MADE A PLODDING BUT THOROUGH PRESENTATION OF EVIDENCE ALLEGEDLY LINKING THE DEFENDANTS TO THE FEB 26 BOMBING MR MOOCH AN AMIABLE MAN WHO SPOKE THROUGH A SPANISHLANGUAGE INTERPRETER LATER TESTIFIED THAT HE HAD CORRECTLY RECOGNIZED TWO OF THE DEFENDANTS FROM PICTURES PRESENTED BY THE GOVERNMENT AFTER THE BOMBING THE JURORS SELECTED ALSO BORE FAINT RESEMBLANCES TO THE TWO DEFENDANTS A FEDERAL JUDGE REDUCED ONE OF THE FRAUD SENTENCES OF DON R DIXON FORMER CHAIRMAN OF DEFUNCT VERNON SAVINGS & LOAN ASSOCIATION OF DALLAS MR DIXON WHO HAS BEEN IN PRISON NEARLY THREE YEARS WAS SENTENCED TO TWO CONSECUTIVE FIVEYEAR TERMS CITING MR DIXON'S BEHAVIOR IN PRISON AND HIS ILL HEALTH JUDGE A JOE FISH OF DALLAS LAST WEEK REDUCED MR DIXON'S SENTENCE ENOUGH TO MAKE HIM ELIGIBLE FOR PAROLE IMMEDIATELY HIS LAWYER SAID WHEN HE WILL BE RELEASED IS UP TO THE PAROLE BOARD SAID HIS LAWYER WILLIAM M RAVKIND OF DALLAS PROSECUTORS HANDLING MR DIXON'S CASE COULDN'T BE REACHED FOR COMMENT VERNON WAS CLOSED BY FEDERAL REGULATORS IN 1987 AT A COST TO TAXPAYERS OF 13 BILLION AN INVESTOR CHARGED WITH EXPOSING FIVE DIFFERENT BROKERAGE HOUSES TO 29 MILLION IN LOSSES IN A FREERIDING SCHEME PLEADED GUILTY TO ONE COUNT OF SECURITIES FRAUD PETER S ADLER 50 OF NEW YORK AND MIAMI ADMITTED EXECUTING SUCH A SCHEME AT PAINE WEBBER INC FROM DECEMBER 1987 THROUGH FEBRUARY 1988 MR ADLER WHO WAS CHARGED IN A FIVECOUNT INDICTMENT A YEAR AGO IS SCHEDULED TO BE SENTENCED FEB 25 WHEN HE FACES A MAXIMUM OF FIVE YEARS IN PRISON AND A FINE OF UP TO 250000 HE PREVIOUSLY AGREED TO PAY 230164 TO SETTLE CIVIL CHARGES FILED BY THE SECURITIES AND EXCHANGE COMMISSION IN A FREERIDING SCHEME INVESTORS BUY STOCK WITH LITTLE OR NO MONEY DOWN IF THE STOCK GOES UP IN VALUE INVESTORS SELL IT REIMBURSE THE BROKERAGE FIRM THAT PUT UP THE PURCHASE PRICE AND POCKET THE DIFFERENCE IF THE STOCK DROPS IN VALUE FREERIDERS HAVE NO INTENTION OF REIMBURSING THE BROKERAGE FIRMS THAT COVERED THE MARGIN COST OF THE STOCK SEC RULES PROHIBIT THIS KIND OF INVESTING ANNE NEWMAN CONTRIBUTED TO THIS ARTICLE 9312080109 931208 TEXAS JOURNAL AS DEADLINE NEARS BULLETTRAIN BACKERS DEVISE PLAN TO TAKE THE VENTURE PUBLIC BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS BULLETTRAIN BACKERS FACING A STATEIMPOSED DEADLINE ARE COUNTING ON AN UNUSUAL FINANCING SCHEME THAT INCLUDES TAKING THE VENTURE PUBLIC OFFICIALS OF TEXAS TGV CORP THE CONSORTIUM THAT WAS AWARDED THE FRANCHISE TO BUILD THE 68 BILLION RAIL SYSTEM WON'T SAY MUCH ABOUT THEIR EFFORTS BUT PEOPLE FAMILIAR WITH THEIR PLAN SAY IT INCLUDES OFFERING 200 MILLION OF EURONOTES THAT COULD BE CONVERTIBLE INTO AN EQUITY STAKE IN THE 200MILESPERHOUR TRAIN SOURCES ALSO SAY THE COMPANY IS TENTATIVELY PLANNING AN INITIAL PUBLIC OFFERING IN THREE YEARS ALTHOUGH THE FINANCING INVOLVES DEBT TEXAS TGV BELIEVES THAT THE CONVERTIBLE FEATURE SHOULD SATISFY STATE REQUIREMENTS THAT IT COME UP WITH 170 MILLION IN EQUITY FINANCING COMMITMENTS BY THE END OF THE YEAR OR FACE DEFAULTING ON ITS FRANCHISE AGREEMENT WE ARE WORKING HARD TO SATISFY THE DEC 31 FINANCING MILESTONE SAID TEXAS TGV CHAIRMAN GLENN BIGGS IN A STATEMENT WE PROPOSE TO MEET THE EQUITYFINANCING COMMITMENT THROUGH A PLANNED OFFERING OF CONVERTIBLE EQUITY NOTES BUT A BIGGER QUESTION IS WHETHER THE DEAL WILL SATISFY INVESTORS THE NOTES NOW BEING PROMOTED TO EUROPEAN AND US INSTITUTIONAL INVESTORS FACE SEVERAL OBSTACLES FOR ONE THING NO ONE HAS EVER BUILT A HIGHSPEED BULLET TRAIN IN THIS COUNTRY LET ALONE CONVINCED CARENAMORED TEXANS TO USE IT IN ADDITION INVESTORS ARE BEING ASKED TO BUY CONVERTIBLE DEBT IN A PROJECT THAT CURRENTLY HASN'T ANY PUBLIC SHARES OUTSTANDING THAT IS WEIRD SAYS GARY KLESCH CHAIRMAN OF KLESCH & CO LTD A LONDON INVESTMENTBANKING FIRM WHEN TOLD OF THE DEAL IT CLEARLY IS UNUSUAL ALTHOUGH I GUESS IT'S JUST A REFLECTION OF HOW FROTHY THE MARKETS ARE WHEN PEOPLE CAN START ISSUING CONVERTIBLES INTO SECURITIES THAT AREN'T EVEN PUBLICLY TRADED ADDS MARK HUNT HEAD OF CONVERTIBLE RESEARCH AT SMITH BARNEY SHEARSON IN NEW YORK IT'S VIRTUALLY UNHEARD OF TO DO A CONVERTIBLE ON A COMPANY THAT HAS NO PUBLICLYTRADED STOCK BUT YOU'VE GOT THE SPECULATIVE APPEAL OF GETTING IN ON THE GROUND FLOOR IF IT DOESN'T WORK OUT YOU'VE GOT A STRUCTURE THAT ALLOWS YOU TO GET YOUR MONEY OUT IN A REASONABLE PERIOD THE 200 MILLION IN CONVERTIBLE EQUITY NOTES WHICH CARRY A 3 COUPON WILL NOT BE PRICED AND SOLD UNTIL FRIDAY ACCORDING TO MCM CORPORATEWATCH OF LONDON AN INFORMATION SERVICE OF MCCARTHY CRISANTI & MAFFEI INC A NEW YORK SECURITIESRESEARCH FIRM MCM CORPORATEWATCH EXPECTS THE NOTES TO BE PRICED TO YIELD BETWEEN 90 AND 10 PERCENTAGE POINT ABOVE THE SEVENYEAR US TREASURY NOTE THAT MEANS AN INVESTOR WOULD EARN ABOUT A 63 ANNUAL RETURN ACCORDING TO MCM CORPORATEWATCH TEXAS TGV HAS THE OPTION TO REPAY THE DEBT AFTER THREE YEARS IF TEXAS TGV FOLLOWS THROUGH ON PLANS TO HOLD AN INITIAL PUBLIC OFFERING HOLDERS OF THE NOTES WILL HAVE THE OPTION OF CONVERTING THE NOTES TO STOCK IF THEY DO THAT THEIR ANNUAL RETURN WILL RISE TO ABOUT 68 TEXAS TGV OFFICIALS SAY THEY CAN'T TALK ABOUT THE DEAL IN DETAIL BECAUSE IT IS BEING SOLD IN THE US UNDER A SECURITIES AND EXCHANGE COMMISSION RULE THAT ALLOWS IT TO BE MARKETED ONLY TO QUALIFIED INSTITUTIONAL BUYERS WITH AT LEAST 100 MILLION IN ASSETS THEY SAY SEC RULES PROHIBIT THEM FROM COMMENTING UNTIL AT LEAST 40 DAYS AFTER THE TRANSACTION CLOSES THE COMPANY IS SCHEDULED TO DISCUSS THE PLAN AT A DEC 17 MEETING OF THE TEXAS HIGH SPEED RAIL AUTHORITY BOARD THE STATE AGENCY THAT IS REGULATING THE DEVELOPMENT OF THE HIGHSPEED RAILWAY MCM CORPORATEWATCH SAYS THE DEAL WILL BE FINAL DEC 17 THE INVESTMENT BANKERS COORDINATING THE TRANSACTION SG WARBURG IN LONDON AND DILLON READ & CO IN NEW YORK AND DALLAS ALSO DECLINED COMMENT OR DID NOT RETURN PHONE CALLS THE FINANCING DEADLINE IS VIEWED AS A MAKEORBREAK EVENT FOR THE TRAIN BECAUSE THE COMPANY LAST YEAR COULDN'T COME UP WITH THE MONEY PROMPTING THE TEXAS HIGH SPEED RAIL AUTHORITY BOARD TO GRANT A CONTROVERSIAL 12MONTH EXTENSION IF THEY MAKE THIS COMMITMENT THEN I FEEL THE PROJECT CERTAINLY IS MORE VIABLE FINANCIALLY THAN IT EVER HAS BEEN SAYS TEXAS HIGH SPEED RAIL CHAIRMAN HERSHEL PAYNE A FORT WORTH ATTORNEY THE KEY TO THE FINANCING SCHEME WILL BE WHETHER THE TEXAS ATTORNEY GENERAL SIGNS OFF ON IT AS MEETING THE TERMS OF THE FRANCHISE AGREEMENT BUT THE AGREEMENT STATES THE COMPANY NEED ONLY PROVIDE LETTERS FROM INVESTMENTBANKING FIRMS STATING THEY ARE HIGHLY CONFIDENT OF THEIR ABILITY TO RAISE THE FUNDS MARC BURNS EXECUTIVE DIRECTOR OF THE RAIL AUTHORITY SAYS THE PLAN IF IT IS SUCCESSFUL IS SIGNIFICANT BECAUSE IT WILL BE THE FIRST TIME OUTSIDE INVESTORS HAVE GIVEN THE TRAIN A VOTE OF CONFIDENCE STILL SOME ANALYSTS SPECULATE THAT THE NOTES ARE BEING MARKETED IN EUROPE IN PART TO FIND INVESTORS WHO AREN'T FAMILIAR WITH THE RISKS OF THE PROJECT IT DOESN'T SOUND LIKE THEIR PLAN IS THAT THE FOUNDING INVESTORS ARE SIMPLY PONYING UP THE MONEY THEMSELVES MR BURNS SAYS BUT EVEN IF THE COMPANY DOES MEET THE FINANCING DEADLINE IT FACES MORE CONTROVERSY MR PAYNE SAYS HE EXPECTS TO REVISE OTHER KEY DEADLINES IN THE FRANCHISE AGREEMENT TO ACCOMMODATE DELAYS IN COMPLETING AN ENVIRONMENTAL STUDY THAT LIKELY MEANS SERVICE BETWEEN DALLAS/FORT WORTH AND HOUSTON PROMISED TO BEGIN IN 1998 WON'T START UNTIL THE YEAR 2000 WHEN YOU HAVE A CONSTRUCTION PROJECT IN EXCESS OF 6 BILLION THINGS JUST HAPPEN IN THE INTERIM SAYS MR PAYNE 9312080108 931208 INSTITUTIONAL SHARE OF US EQUITIES SLIPS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BIG INVESTORS AREN'T AS BIG AS THEY USED TO BE AT LEAST IN THE STOCK MARKET PENSION FUNDS AND OTHER INSTITUTIONS HELD 468 OF ALL US STOCKS AS THIS YEAR BEGAN DOWN SHARPLY FROM A 1990 PEAK OF 505 ACCORDING TO A NEW STUDY SEVERAL FORCES ARE AT WORK SMALL INVESTORS ARE BUYING MORE INDIVIDUAL STOCKS ERODING INSTITUTIONS' SHARE AND AT THE GROWING NUMBER OF COMPANIES THAT ALLOW EMPLOYEES TO PICK THEIR OWN RETIREMENT INVESTMENTS MANY WORKERS ARE AVOIDING STOCKS IN FAVOR OF BONDS THE REDUCED INSTITUTIONAL INFLUENCE MAY COME AS RELIEF TO PEOPLE WHO FRETTED IN THE 1980S THAT PENSION FUNDS MUTUAL FUNDS INSURANCE COMPANIES FOUNDATIONS BANK TRUSTS AND OTHER INSTITUTIONS WERE AMASSING TOO MUCH POWER IN TOO FEW HANDS THIS DOESN'T NECESSARILY NEGATE THE TREND OF CONCENTRATED STOCK OWNERSHIP BUT PAUSES IT SAYS CAROLYN KAY BRANCATO WHO COMPILED THE SURVEY CALLED THE BRANCATO REPORT IT IS PUBLISHED IN PARTNERSHIP WITH VICTORIA GROUP INC A FAIRFAX VA CONSULTING FIRM THE BRANCATO SURVEY IS ONE OF THE FIRST UPDATES SINCE 1990 OF FIGURES TRACKING THE ECONOMIC CLOUT OF INSTITUTIONS THE PHENOMENAL GROWTH OF INSTITUTIONAL OWNERSHIP WAS ORIGINALLY DOCUMENTED IN 1988 BY THE COLUMBIA UNIVERSITY LAW SCHOOL INSTITUTIONAL INVESTOR PROJECT WHERE DR BRANCATO WAS CHIEF ECONOMIST AS RECENTLY AS 1980 THE PROJECT FOUND INSTITUTIONS CONTROLLED JUST ONETHIRD OF THE US STOCK MARKET WHICH DR BRANCATO DEFINES AS ALL SECURITIES TRADED BY US INVESTORS INCLUDING FOREIGN STOCKS THE PHENOMENAL 1980S GROWTH WAS PROPELLED BY FEDERAL LAW WHICH FORCED CORPORATIONS TO SET ASIDE FUNDS FOR PROMISED PENSIONS AND BY THE 1987 STOCKMARKET CRASH WHICH DROVE MANY SMALL INVESTORS TO THE PERCEIVED RELATIVE PROTECTION OF MUTUAL FUNDS HERE CLASSIFIED AS INSTITUTIONS BUT INSTITUTIONS LOST GROUND IN RECENT YEARS AS SMALL INVESTORS SHOWED RENEWED CONFIDENCE IN PICKING THEIR OWN STOCKS DR BRANCATO'S UPDATED FIGURES SHOW MEANWHILE THE ROLE OF OLDFASHIONED DEFINEDBENEFIT PENSION PLANS HAS DIMINISHED AS MANY COMPANIES RESTRUCTURE AND OVERHAUL THEIR PENSION SYSTEMS UNDER THE OLDFASHIONED PLANS COMPANIES ARE RESPONSIBLE FOR INVESTING RETIREES' MONEY AND CORPORATE SPONSORS TEND TO BE BIG BUYERS OF STOCK BUT MANY COMPANIES NOW OFFER DEFINEDCONTRIBUTION PLANS GIVING INDIVIDUALS MORE DISCRETION OVER WHERE TO PUT THEIR RETIREMENT INVESTMENTS THE RESULT INSTITUTIONS HELD 2681 TRILLION IN STOCKS AT THE END OF 1992 A 48 JUMP FROM THE 1812 TRILLION HELD IN 1990 BUT OVERALL MARKET VALUE OF STOCKS OUTSTANDING GREW AN EVEN FASTER 56 IN THE SAME PERIOD TO 5541 TRILLION THE STUDY SHOWS THE GIANTS WOUND UP WITH A SMALLER PIECE OF A MUCHBIGGER PIE BUT INSTITUTIONS ARE HARDLY IN RETREAT THEY REMAIN THE DOMINANT OWNERS OF THE LARGEST COMPANIES IN THE COUNTRY EVEN IF THE PERCENTAGE OWNERSHIP IS DOWN A FEW POINTS SAYS JAMES HEARD PRESIDENT OF INSTITUTIONAL SHAREHOLDER SERVICES A CONSULTING FIRM AND SOME INSTITUTIONS ARE ACTUALLY INCREASING THEIR CLOUT STATE AND LOCAL PENSION FUNDS FOR EXAMPLE HAVE SHARPLY INCREASED THEIR STOCKHOLDINGS STOCKS REPRESENTED 478 OF PUBLIC PENSIONFUND HOLDINGS IN 1992 UP FROM 397 IN 1990 THERE'S SIGNIFICANCE TO THE INCREASE DR BRANCATO SAYS LONG THE MOST VOCAL OF INVESTOR ACTIVISTS THESE FUNDS HAVE MORE REASON THAN EVER TO HOLD MANAGERS' FEET TO THE FIRE WHEN A COMPANY DOESN'T PERFORM WELL RALPH WHITWORTH PRESIDENT OF THE SOONTOFOLD UNITED SHAREHOLDERS ASSOCIATION SAYS THAT AS LONG AS THE ACTIVISM CONTINUES INDIVIDUALS NEEDN'T WORRY ABOUT HOW MUCH STOCK THEY OWN RELATIVE TO THE INSTITUTIONS THE BEST THING THAT EVER HAPPENED TO SMALL SHAREHOLDERS IS THAT SOME LARGE ONES HAVE COME ALONG TO LOBBY FOR INCREASED STOCKHOLDER VALUE HE SAYS ALLOWING INDIVIDUALS TO PIGGYBACK ON THEIR SUCCESSES BUT OTHERS FRET THAT INSTITUTIONS MAY BE ABLE TO GET ACCESS TO INFORMATION THAT INDIVIDUALS DON'T HAVE GIVING THEM AN EDGE OVER SMALL INVESTORS FRIENDLY TIES BROWN BROTHERS HARRIMAN & CO'S NEW RELATIONSHIP INVESTING FUND IS SET TO BEGIN PLOWING 475 MILLION INTO MIDSIZE COMPANIES BEGINNING EARLY NEXT YEAR THE INVESTMENT BANKING FIRM'S 1818 FUND II A LIMITED PARTNERSHIP HELD ITS FINAL CLOSING FRIDAY AND IS REVIEWING SEVERAL DOZEN COMPANIES FOR POTENTIAL INVESTMENTS BROWN BROTHERS SAID THE FUND INCLUDES A 75 MILLION INVESTMENT FROM THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM A BIG ADVOCATE OF RELATIONSHIP INVESTING UNDER WHICH INVESTORS TRY TO LEND A HELPING HAND TO MANAGEMENT TO IMPROVE CORPORATE PERFORMANCE CALPERS THIS YEAR PLEDGED 125 MILLION TO A RELATIONSHIP FUND BEING PUT TOGETHER BY DILLON READ & CO FOR THE 1818 FUND NAMED FOR THE YEAR OF BROWN BROTHERS' FOUNDING OFFICIALS INCLUDING SEVERAL FORMER MERGER SPECIALISTS WILL SEEK TO NEGOTIATE PRIVATE INVESTMENTS IN MIDSIZE COMPANIES FOR THE FUND ENVISIONED ARE 10 TO 25 STAKES TO BE HELD PERHAPS FOUR TO SIX YEARS WITH THE FUND GENERALLY TAKING ONE BOARD SEAT UNLIKE THE DILLON READ FUND WHICH INTENDS TO INVEST IN CORPORATE TURNAROUNDS THE BROWN BROTHERS FUND WILL CONCENTRATE ON HEALTHY WELLMANAGED COMPANIES THAT NEED NEW CAPITAL TO GROW MICHAEL LONG A BROWN BROTHERS PARTNER SAYS AN EARLIER BROWN BROTHERS FUND OF THIS TYPE GOT UNDER WAY IN EARLY 1991 WITH 325 MILLION IN INVESTMENTS AND ANNUAL TOTAL RETURNS HAVE EXCEEDED 30 LAWRENCE TUCKER ANOTHER BROWN BROTHERS PARTNER SAYS THAT FUND MOSTLY CONTAINED MONEY FROM LONGTIME BROWN BROTHERS CLIENTS IN THE FINANCIALSERVICES BUSINESS WHO TRUSTED THE FIRM'S CONCEPT MR TUCKER SAYS BUT IN VIEW OF THE FIRST FUND'S TRACK RECORD THE NEW FUND HAS ATTRACTED 190 MILLION FROM PUBLIC AND CORPORATE PENSION FUNDS INCLUDING THOSE OF MASSACHUSETTS LOS ANGELES COUNTY AND AS A 25 MILLION INVESTOR THE WORLD BANK MINIMUM INVESTMENTS ARE 10 MILLION 9312080107 931208 WHO'S NEWS MERCK'S ZABRISKIE IS NAMED CHAIRMAN CHIEF OF UPJOHN VAGELOS HEIR UNCLEAR BY DOUGLAS LAVIN AND ELYSE TANOUYE STAFF REPORTERS OF THE WALL STREET JOURNAL KALAMAZOO MICH UPJOHN CO WHICH HAS BEEN WITHOUT A CHAIRMAN SINCE APRIL NAMED JOHN L ZABRISKIE AN EXECUTIVE VICE PRESIDENT AT MERCK & CO AS CHAIRMAN AND CEO EFFECTIVE JAN 3 WHILE THE APPOINTMENT FILLS A LEADERSHIP VACUUM AT UPJOHN IT DOES LITTLE TO CLARIFY SUCCESSION AT MERCK WHERE DR ZABRISKIE WAS A CONTENDER FOR THE NO 1 SPOT NO SINGLE CONTENDER HAS EMERGED AS THE MOST LIKELY SUCCESSOR FOR MERCK'S CHAIRMAN P ROY VAGELOS WHO IS SCHEDULED TO RETIRE NEXT YEAR FOR UPJOHN THE APPOINTMENT APPARENTLY MEANS THE COMPANY NO LONGER IS FOR SALE RIGHT NOW DR ZABRISKIE SAID REMAINING INDEPENDENT IS THE BEST WAY FOR UPJOHN TO CONTINUE TO MEET OBLIGATIONS TO ITS SHAREHOLDERS AND EMPLOYEES SPECULATION THAT UPJOHN COULD BE FOR SALE WAS EXACERBATED WHEN IN THE PAST FEW MONTHS TWO OF THE COMPANY'S THREE VICE CHAIRMEN ANNOUNCED PLANS TO LEAVE THE LONG ABSENCE OF SENIOR LEADERSHIP LED SOME INVESTORS TO BELIEVE UPJOHN WAS IN PLAY SAID RONALD NORDMANN A PHARMACEUTICALS ANALYST WITH PAINEWEBBER INC INVESTORS RELIEVED THAT AN EXPERIENCED DRUG COMPANY EXECUTIVE WAS PLACED AT UPJOHN'S HELM DROVE THE STOCK UP YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WHERE IT WAS QUOTED AT 31125 UP 625 CENTS HOWEVER SOME ANALYSTS CAUTIONED THAT THE STOCK PROBABLY WILL DROP BECAUSE THE COMPANY WILL NO LONGER BE CONSIDERED A LIKELY TAKEOVER TARGET WITH A PHD IN ORGANIC CHEMISTRY FROM THE UNIVERSITY OF ROCHESTER DR ZABRISKIE 54 YEARS OLD IS AN EXPERIENCED MANUFACTURING EXECUTIVE NONETHELESS ANALYSTS CAUTION THAT HE WILL BE ABLE TO DO LITTLE TO REVERSE AN ANTICIPATED SLIDE IN UPJOHN'S EARNINGS AS KEY PATENTS EXPIRE IN THE SHORT TERM THE PROBLEMS CAN ONLY BE RESOLVED BY A MIRACLE BUT THE REAL QUESTION IS HOW THE COMPANY WANTS TO POSITION ITSELF FOR THE LONG TERM AND THAT'S WHERE MR ZABRISKIE WILL PLAY A MAJOR ROLE SAID HEMANT K SHAH AN INDEPENDENT ANALYST IN WARREN NJ DR ZABRISKIE WAS NOT AVAILABLE FOR COMMENT HE HAS A RECORD OF ACCOMPLISHMENT AT MERCK SAID JAMES P KEENEY A PHARMACEUTICAL ANALYST AT MABON SECURITIES CORP UPJOHN GETS A VERY SEASONED EXECUTIVE WITH BOTH MARKETING AND MANUFACTURING EXPERIENCE TO JOIN WHEN THE COMPANY IS CLEARLY AT A CROSSROADS MR KEENEY SAID IN OCTOBER PATENTS EXPIRED ON UPJOHN'S INSOMNIA AND ANXIETY DRUGS HALCION AND XANAX AND UPJOHN FACES STIFF COMPETITION FROM GENERICS ON THOSE DRUGS AND OTHERS GENERICS WILL ALSO BE COMPETING WITH UPJOHN'S ANSAID AN ARTHRITIS DRUG CLEOSIN TOPICAL AN ACNE DRUG AND IN 1997 ROGAINE A HAIR GROWTH DRUG IN RESPONSE UPJOHN IS CUTTING ITS STAFF FROM ABOUT 19000 EMPLOYEES TO 17500 BY THE END OF 1994 UNTIL NOW UPJOHN LACKED MUCH MANAGEMENT STRENGTH TO GUIDE IT THROUGH A PERIOD OF NEW COMPETITION AND CUTBACKS THEODORE COOPER UPJOHN'S CHAIRMAN AND CEO DIED IN APRIL FROM CANCER IN AUGUST THE COMPANY'S VICE CHAIRMAN MARK NOVITCH ANNOUNCED HIS RETIREMENT EFFECTIVE DEC 20 AND IN SEPTEMBER VICE CHAIRMAN WILLIAM U PARFET A GREATGRANDSON OF THE COMPANY'S PRINCIPAL FOUNDER RESIGNED DR ZABRISKIE SEEMS TO OFFER THE SEASONED MANAGEMENT EXPERTISE UPJOHN NEEDS HE WAS AMONG A HANDFUL OF TOP EXECUTIVES COMPRISING MERCK'S INNER MANAGEMENT CIRCLE DUBBED THE CHAIRMAN'S STAFF AND HE WAS VIEWED AS ONE OF SEVERAL LEADING CANDIDATES TO SUCCEED DR VAGELOS A CURRENT CONTENDER FOR MERCK'S CHAIRMANSHIP IS MARTIN J WYGOD CHAIRMAN OF MEDCO CONTAINMENT SERVICES INC WHICH RECENTLY MERGED WITH MERCK IN A WRITTEN STATEMENT DR VAGELOS CONGRATULATED DR ZABRISKIE CREDITING HIM WITH GREAT CONTRIBUTIONS TO MERCK DR ZABRISKIE HAD RESPONSIBILITY FOR MERCK'S MANUFACTURING AND PUBLIC AFFAIRS SINCE MARCH 1991 PREVIOUSLY HE HEADED THE COMPANY'S HUMAN HEALTH MARKETING DIVISIONS IN THE US AND CANADA 9312080106 931208 WHO'S NEWS BIG O TIRES INC BIG O TIRES INC ENGLEWOOD COLO FRANK L CARNEY WAS NAMED TO THE BOARD OF THIS TIRE AND AUTOMOTIVESERVICES RETAILER MR CARNEY 55 YEARS OLD WAS A COFOUNDER IN 1958 OF PIZZA HUT NOW A UNIT OF PEPSICO HIS APPOINTMENT EXPANDS BOARD MEMBERSHIP TO NINE 9312080105 931208 RETAILING TO HAVE A VERY POLITICALLY CORRECT CHRISTMAS WRAP NONVIOLENT FAIRY TALES IN RECYCLED PAPER BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL CHRISTMAS LIST MAKERS BE WARNED SANTA HAS BECOME POLITICALLY CORRECT THIS SEASON KIDS HANKERING FOR A MORTAL KOMBAT VIDEO GAME MAY HAVE TO MAKE DO WITH THE DINOSAUR'S JOURNEY TO HIGH SELFESTEEM BOARD GAME AND INSTEAD OF MINKS THEIR PARENTS COULD END UP WITH SWEATERS KNIT FROM RECYCLED SODA BOTTLES GIFTS THAT SEND A MESSAGE OR ESPOUSE A CAUSE ARE MOVING INTO RETAILING'S MAINSTREAM TURNING UP ON THE SHELVES OF TOYS R US AND THE PAGES OF THE LL BEAN CATALOG THOUGH SUCH GOODS AREN'T ABOUT TO ECLIPSE THE FRIVOLOUS EXCESSES OF CHRISTMASES PAST THEY OCCUPY AN EXPANDING NICHE IN THE GIFT MARKET THE BODY SHOP COSMETIC CHAIN'S AUSTERE BROWNPAPER SHOPPING BAGS SET THE SEASON'S TONE THEIR SLOGAN BE CONCERNED ABOUT THE FUTURE YOU'LL SPEND THE REST OF YOUR LIFE THERE AND THE SEVENTH GENERATION CATALOG A COLCHESTER VT PURVEYOR OF EARTHFRIENDLY PRODUCTS LIKE RECYCLED SHOES PREACHES GIVE A GIFT WITH MEANING FOR THOSE INCLINED TO WEAR CAUSES ON THEIR SLEEVES MEANINGFUL GIFTS ABOUND AMONG THE SHEARLING SLIPPERS AND POCKET KNIVES IN LL BEAN'S HOLIDAY CATALOG ARE UNTREATED UNBLEACHED AND UNDYED BATHROBES AND NIGHTSHIRTS SAID TO BE EASIER ON THE ENVIRONMENT FOR 85 APIECE PATAGONIA INC SELLS FLEECE SWEATERS FASHIONED FROM PLASTIC BOTTLES MELTED DOWN MADE INTO FIBER AND SPUN INTO YARN SHOPPING IN THE HANDS OF THIS NEW BREED OF MARKETER CAN BECOME AN ACT OF ALTRUISM CHOCOHOLICS CAN ASSUAGE GUILT BY MUNCHING CANDY BARS FROM CLOUD NINE INC A HOBOKEN NJ COMPANY THAT DONATES 10 OF GROSS PROFITS TO HELP RAINFOREST DWELLERS IN FEBRUARY FLORISTS' TRANSWORLD DELIVERY ASSOCIATION WILL BEGIN SELLING 10 BAGS OF POTPOURRI MADE FROM ROSES RECYCLED FROM FLOATS IN THE TOURNAMENT OF ROSES PARADE THE PROCEEDS GO TO CHILDREN'S HOSPITALS AROUND THE HOUSE SEASONAL TOUCHES CAN REFLECT A MORE INCLUSIVE AND ECOFRIENDLY SPIRIT AVON PRODUCTS INC OFFERS A NEW NATIVITY SCENE FOR CHILDREN FEATURING EITHER BLACK OR WHITE FIGURINES HALLMARK CARDS INC IS EXPANDING AND PROMOTING CHRISTMAS NATURALS CARDS AND GIFT WRAP MADE OF RECYCLED PAPER MANY BABY BOOMER PARENTS TAKE TOY SHOPPING PARTICULARLY SERIOUSLY WHEN PARENTS TODAY BUY FOR KIDS THEY WANT TO REINFORCE VALUES AND TEACH THEM ABOUT THE WORLD SAYS BILL MILLER GENERAL MANAGER OF THE FAO SCHWARZ TOY STORE ON NEW YORK'S FIFTH AVENUE HE SAYS MULTIRACIAL DOLLS AND STUFFED ANIMALS WHOSE SALES BENEFIT THE NATIONAL WILDLIFE FEDERATION HAVE BEEN SELLING BRISKLY THIS YEAR DIVERSITY OF ANOTHER SORT IS BEING MARKETED BY LITTLE TIKES CO A UNIT OF RUBBERMAID INC THIS SEASON IT INTRODUCED WHEELCHAIR RAMP & FRIEND THE FIRST DOLLHOUSE FIGURE FROM A MAJOR TOY COMPANY TO FEATURE A PERSON WITH A DISABILITY THE PLASTIC FIGURINE IN HIS WHEELCHAIR IS SELLING WONDERFULLY A LITTLE TIKES SPOKESWOMAN SAYS PARENTAL CONCERN OVER GRAPHIC VIOLENCE AND THE CONCERN OF PROFESSIONALS THAT CERTAIN CHILDREN ARE SENSITIVE TO BLOODY TALES WILL PROBABLY HELP SALES OF WESTERN PUBLISHING CO'S EXPURGATED FAIRY TALES CLASSICS FROM WHICH VIOLENCE OR ACTIONS THAT MAY FRIGHTEN YOUNGER READERS HAVE BEEN DELETED IN THE UPDATED LITTLE GOLDEN BOOK VERSION LITTLE RED RIDING HOOD AND HER GRANDMOTHER AREN'T EATEN BY THE WOLF GRANNY SCARES HIM OFF FEW COMPANIES SELL SENSITIVITY AS ASSIDUOUSLY AS CENTER FOR APPLIED PSYCHOLOGY INC IN KING OF PRUSSIA PA ITS CHILDSWORK/CHILDSPLAY CATALOGS OFFER GAMES BOOKS AND TOYS AIMED AT TENDER YOUNG PSYCHES THE FACE YOUR FEELINGS BOARD GAME TEACHES ABOUT EMOTIONS A MIND YOUR MANNERS GAME AIMS TO IMPART SOCIAL SKILLS AND THE DINOSAUR'S JOURNEY TO HIGH SELFESTEEM SPEAKS FOR ITSELF IN JULY THE COMPANY OPENED ITS FIRST RETAIL OUTLET THE CHILD DEVELOPMENT STORE OUTSIDE PHILADELPHIA LAWRENCE E SHAPIRO A PRACTICING CHILD PSYCHOLOGIST WHO IS THE COMPANY'S FOUNDER SAYS SALES HAVE BEEN SO STRONG THAT HE PLANS TO OPEN 10 MORE IN THE NEXT TWO YEARS DESPITE MANY PARENTS' MISGIVINGS THOUGH VIOLENCE AND GLAMOUR ARE STILL THE MAINSTAYS OF THE 17 BILLION TOY BUSINESS AFTER 34 YEARS MATTEL INC'S BARBIE REMAINS THE TOP FASHION DOLL AND RETAIL SALES OF ACCLAIM ENTERTAINMENT INC'S MORTAL KOMBAT A GORY MARTIALARTS VIDEO GAME WILL DO MORE IN SALES THAN ALL THE PC TOYS AND GAMES COMBINED THIS CHRISTMAS SAYS GARY JACOBSON A TOY ANALYST FOR KIDDER PEABODY INC NONETHELESS TOY MAKERS SAY THEY ARE ATTEMPTING TO RESPOND TO THE GROWING NUMBER OF CUSTOMERS WHO DEMAND ALTERNATIVES AT A TOYS R US STORE IN MANHATTAN DHERESA MATTHEWS SAYS SHE HAS STRICKEN MORTAL KOMBAT AND CAPCOM USA'S STREET FIGHTER 2 VIDEO GAMES FROM HER 10YEAROLD SON'S GIFT LIST THEY'RE TOO VIOLENT SHE SAYS HE'S AROUND ENOUGH OF THAT OUTSIDE THE HOME INSTEAD SHE SELECTS A TALKING EDUCATIONAL GAME AND A SMALL TOY COMPUTER AS A SOP SHE ALSO BUYS SOME GI JOE MEGA MARINES ACTION FIGURES FROM HASBRO INC NOW PROMOTED AS A LINE OF BIOTECH FIGHTERS TOYS HAVE REFLECTED RACIAL DIVERSITY SINCE AT LEAST 1968 THE YEAR OF THE FIRST BLACK DOLL IN THE BARBIE LINE BUT THIS CHRISTMAS THE ASSORTMENT IS THE WIDEST EVER AND TOY MAKERS ARE STRIVING FOR MORE AUTHENTICITY HASBRO'S PLAYSKOOL UNIT HAS INTRODUCED KIDS OF COLOR SAID TO BE THE FIRST AFRICANAMERICAN CLOTH DOLLS FOR INFANTS SHARON HARTLEY PLAYSKOOL'S SENIOR VICE PRESIDENT OF MARKETING SAYS THE COMPANY USED TO PUT AFRICANAMERICAN HEADS ON WHITE DOLLS THIS TIME HASBRO TURNED TO BLACKOWNED OLMEC TOYS INC TO HELP DEVELOP AND LAUNCH A LINE THAT IS DRESSED IN TRADITIONAL KENTE CLOTH BUT SUCH PRODUCTS AREN'T SHOOINS MATTEL'S SHANI DOLL INTRODUCED IN 1991 HAS AFRICANAMERICAN FEATURES AND A HIPPER WARDROBE THAN THE BARBIE LINE SHE MIMICS THE LATEST SOUL TRAIN SHANI COMES WITH DOC MARTENSLIKE BOOTS BUT SHANI HASN'T SOLD BEYOND OUR EXPECTATIONS SAYS LISA MCKENDALL A SPOKESWOMAN WE ARE STILL WORKING ON IT NOR DOES A GREEN IMAGE GUARANTEE SALES IN 1990 TIGER ELECTRONICS INC INTRODUCED A LINE OF ACTION FIGURES INSPIRED BY THE ANIMATED ECOWARRIOR SERIES FROM TURNER BROADCASTING SYSTEM INC THAT'S NOW KNOWN AS THE NEW ADVENTURES OF CAPTAIN PLANET THE TOY PACKAGED WITH ECOLOGICAL TIPS AND MADE FROM RECYCLED MATERIALS HAD A FAST START BUT SALES SOON FLAGGED CAPTAIN PLANET MAY HAVE BEEN AHEAD OF HIS TIME TIGER PULLED THE TOY FROM MASS DISTRIBUTION AND THIS YEAR BEGAN OFFERING IT EXCLUSIVELY AT KMART CORP STORES WHERE BOTH TIGER AND TURNER REPORT STRONG SALES NOTING THAT THE TOY HAS DONE PHENOMENALLY WELL IN EUROPE TIGER SPOKESMAN MARC ROSENBERG SAYS SOME OF THOSE MARKETS ARE JUST GREENER THAN THE US 9312080103 931208 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ILLITERACY HAS FALLEN GLOBALLY FOR THE FIRST TIME UNESCO SAID IN A WORLD EDUCATION REPORT THE AGENCY'S TWOYEAR STUDY FOUND 905 MILLION ADULTS WERE ILLITERATE IN 1990 DOWN 42 FROM 945 MILLION IN 1980 THE REPORT WAS ISSUED IN PARIS BY THE UNITED NATIONS EDUCATION SCIENTIFIC AND CULTURAL ORGANIZATION ONE WEEK BEFORE THE FIRST GLOBAL EDUCATION SUMMIT IN NEW DELHI INVOLVING THE NINE MOST POPULOUS COUNTRIES WITH 72 OF ALL ILLITERATES ILLITERACY CONTINUED TO RISE IN AFRICA WHERE UNESCO SAID EDUCATION NEEDS TO FOCUS ON WOMEN TO ENCOURAGE THEM TO HAVE FEWER CHILDREN IN SUBSAHARAN AFRICA THE NUMBER OF ILLITERATES ROSE 45 TO 138 MILLION FROM 132 MILLION AS THE CONTINENT'S ADULT POPULATION GREW A THIRD TO 250 MILLION AND EDUCATION SPENDING FELL TO 76 A STUDENT FROM 83 WAR AND SOCIAL UPHEAVAL HAMPERED EDUCATION IN THE THIRD WORLD AND COUNTRIES OF THE FORMER SOVIET BLOC UNESCO SAID DEVELOPED COUNTRIES SPEND 53 OF GROSS NATIONAL PRODUCT ON EDUCATION AND LESS DEVELOPED COUNTRIES 33 POSTAL EMPLOYEES IN INDIA BEGAN A NATIONWIDE STRIKE TO DEMAND PAY RAISES AND IMPROVED WORKING CONDITIONS ABOUT 80 OF THE COUNTRY'S 600000 LETTER CARRIERS AND OTHER POSTAL WORKERS WALKED OUT LETTERS ARE THE MAIN FORM OF PERSONAL COMMUNICATION IN INDIA WHERE PHONES ARE RARE AND LONGDISTANCE RATES WIDELY UNAFFORDABLE LAST YEAR THE POSTAL SERVICE HANDLED 150 BILLION PIECES OF MAIL MORE THAN 5000 UNIDENTIFIED FLYING OBJECTS HAVE BEEN REPORTED IN CHINA AND TAIWAN ACCORDING TO RESEARCHERS WHO MET IN BEIJING FOR THE FIRST SINOTAIWAN UFO SYMPOSIUM THE UFO RESEARCHERS SAID SOME OF THE SIGHTINGS INCLUDING THOSE BY ASTRONOMICAL OBSERVATORIES AND CIVILIAN AND MILITARY PILOTS CANNOT BE EXPLAINED BY GENERAL KNOWLEDGE OR CURRENT SCIENTIFIC FINDINGS CHINA'S XINHUA NEWS AGENCY REPORTED IN THE LATEST ONE ON AUG 7 TWO HATLIKE OBJECTS WERE OBSERVED ABOVE TAIPEI'S AIRPORT FOR 15 MINUTES GUNMEN KILLED A RUSSIAN BUSINESSMAN AND HIS DRIVER IN MOSCOW AND STOLE A BRIEFCASE CONTAINING 250000 IT WAS THE THIRD ATTACK ON BUSINESS EXECUTIVES IN A WEEK THE RUSSIAN AGRICULTURE BANK'S CHAIRMAN AND A MOSCOW TRADING FIRM'S DIRECTOR WERE MURDERED LAST WEEK THE BANKER'S DEATH PROMPTED SEVERAL COMMERCIAL BANKS AND FOREIGNCURRENCY EXCHANGES TO CLOSE YESTERDAY TO PROTEST UNDERWORLD KILLINGS OF AT LEAST SIX COMMERCIAL BANKERS AND DOZENS OF ENTREPRENEURS THIS YEAR RUSSIA'S 1600 BANKS ARE RICH EXTORTION TARGETS IN THE DEVELOPING ECONOMY JAPAN HAD 1765 DOCTORS FOR EVERY 100000 PEOPLE AS OF LAST DEC 31 UP FROM 1713 TWO YEARS EARLIER CONTINUING TO EXCEED THE GOVERNMENT'S TARGET OF 150 THE HEALTH AND WELFARE MINISTRY SAID THE NUMBER OF PHYSICIANS TOTALED 219704 A 37 INCREASE FROM DEC 31 1990 WHILE DENTISTS TOTALED 77416 UP 46 AND PHARMACISTS TOTALED 162021 UP 76 THE DENTIST TOTAL REPRESENTED 622 PER 100000 PEOPLE A 23 INCREASE FROM THE END OF 1990 CHINA THE WORLD'S SIXTHLARGEST GOLD PRODUCER WITH 400 TONS OF RESERVES SAID IT WOULD ALLOW FOREIGN COMPANIES TO INVEST IN ITS GOLD MINES NEXT YEAR RULES ARE BEING DRAWN UP NOW FOR SELECTIVE INTRODUCTION OF INVESTMENT AND TECHNOLOGY FROM ABROAD CHINA WHICH HAS LONG REGARDED GOLD AS A STRATEGIC METAL MONOPOLIZED MINING AND SALES KEPT PRODUCTION FIGURES SECRET AND BARRED FOREIGN INVOLVEMENT IT BEGAN CHANGING ITS GOLD POLICY IN SEPTEMBER WHEN IT BROUGHT PRICES CLOSER TO WORLD RATES TO STIMULATE PRODUCTION CHINA ALSO HAS DROPPED SUBSIDIES AND DISCONTINUED LOWINTEREST LOANS FOR GOLD PRODUCERS NORTH KOREA TRYING TO ATTRACT INVESTMENT FROM ABROAD TO HELP RESCUE THE ECONOMY SAID FOREIGNERS WOULDN'T NEED VISAS IF THEY ENTERED PROPOSED FREETRADE ZONES ON DESIGNATED ROUTES WITHOUT PASSING THROUGH OTHER PARTS OF THE COUNTRY THE ACCESS RULES DESIGNED TO MAINTAIN SECURITY ARE THE LATEST ECONOMIC MEASURES BY THE ISOLATED HARDLINE COMMUNIST GOVERNMENT WHICH LAST MONTH SAID IT WOULD ALLOW OPERATIONS BY FOREIGN BANKS NORTH KOREA ISOLATED SINCE THE GLOBAL COLLAPSE OF COMMUNIST REGIMES AND AID DONORS APPROVED LAWS LAST YEAR TO ENCOURAGE FOREIGN INVESTMENT TAX INCENTIVES WERE OFFERED FOR JOINT VENTURES EARLIER THIS YEAR THE GOVERNMENT AGREED TO LET FOREIGN COMPANIES LEASE LAND AS PART OF THE PLAN TO SET UP THE FREETRADE ZONES ON THE EAST COAST YET NORTH KOREA'S ATTRACTION TO FOREIGN INVESTORS IS UNCERTAIN AS THE GOVERNMENT BATTLES INTERNATIONAL ALLEGATIONS THAT IT IS DEVELOPING NUCLEAR WEAPONS NORTH KOREA ALSO PLANS TO PARTICIPATE IN DEVELOPING A PORT RAILROADS HIGHWAYS AND AIRPORT IN THE TUMAN RIVER BASIN BORDER AREA WITH CHINA AND RUSSIA A GALLUP POLL ON BRITONS' GENERAL KNOWLEDGE FOUND THAT JUST 33 KNEW KENNETH CLARKE IS THE COUNTRY'S FINANCE CHIEF 10 THAT PETE SAMPRAS OF THE US WON THIS YEAR'S PRESTIGIOUS WIMBLEDON TENNIS TITLE AND 35 THAT TCHAIKOVSKY WROTE THE 1812 OVERTURE RUSSIAN GOVERNMENT AGENCIES ESTIMATED INFLATION LAST MONTH RAN BETWEEN 12 AND 17 THE LOWEST THIS YEAR WHEN MONTHLY RATES HAVE HOVERED BETWEEN 20 AND 25 RECENT MOVES TO TIGHTEN MONETARY POLICY AND TRIM THE BUDGET DEFICIT HELPED SLOW RAMPANT INFLATION 9312080102 931208 US AND EC REACH ACCORD ON FARM TRADE DEAL SENDS INCOMPLETE PACT TO FULL GATT TALKS TOUGH ISSUES REMAIN BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL AFTER SEVEN YEARS OF HAGGLING THE US AND EUROPEAN COMMUNITY FINALLY STRUCK AN ACCORD ON FARM TRADE THAT SEEMS ACCEPTABLE TO FRANCE ENABLING THEM TO BRING A BROAD IF INCOMPLETE TRADE DEAL TO THE GLOBAL TALKS IN GENEVA BUT THE US AND EC COULDN'T RESOLVE THEIR DIFFERENCES OVER EC MOVIE QUOTAS AND CIVILAIRCRAFT SUBSIDIES AND IT'S STILL FAR FROM CLEAR WHETHER THE TENTATIVE AGREEMENT ON AGRICULTURE WILL CLINCH THE WORLD TRADE PACT THE LACK OF AGREEMENT ON MOVIES AND AIRCRAFT FRUSTRATED THE US AND EUROPEAN OFFICIALS WHO WANTED TO BRING A COMPLETED ACCORD WITH THEM TO GENEVA AND NEGOTIATE AS FULL ALLIES THE NEGOTIATIONS NOW SHIFT FROM BRUSSELS TO GENEVA WHERE THE 116 NATIONS INVOLVED IN THE WORLD TRADE TALKS HELD UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WILL TRY TO WRAP UP A DEAL BY NEXT WEDNESDAY AFTER THAT CONGRESSIONALLY SET DEADLINE US OFFICIALS LOSE THEIR AUTHORITY TO NEGOTIATE A TRADE DEAL UNDER SPECIAL PROCEDURES THAT PREVENT CONGRESS FROM AMENDING THE PACT WE CAN HAVE A SUCCESSFUL CONCLUSION OF THE TRADE TALKS US TRADE REPRESENTATIVE MICKEY KANTOR SAID AT A NEWS CONFERENCE IN BRUSSELS I AM ACTUALLY CONFIDENT THAT CAN BE DONE THE ASSENT OF FRANCE WHICH HAS REGULARLY TORPEDOED A GATT DEAL IS CRUCIAL FRENCH FOREIGN MINISTER ALAIN JUPPE SAID THAT VERY IMPORTANT PROGRESS HAS BEEN MADE ON AGRICULTURE A PREVIOUS USEC FARM ACCORD NEGOTIATED UNDER THE BUSH ADMINISTRATION HAS BEEN PROFOUNDLY MODIFIED IN THE MANNER DESIRED BY FRANCE MR JUPPE HOWEVER STOPPED SHORT OF FULLY ENDORSING THE NEW FARM ACCORD SAYING FRANCE'S APPROVAL WAS CONTINGENT ON AN INTERNAL EC AGREEMENT THAT NO ADDITIONAL CONCESSIONS WOULD BE REQUIRED OF EC FARMERS THE NEW FARM ACCORD WOULD SLOW THE RATE AT WHICH FRANCE AND OTHER EC COUNTRIES MUST MAKE 21 CUTS IN THE VOLUME OF SUBSIDIZED EXPORTS OVER SIX YEARS AS A RESULT THE EC MAINLY FRANCE IS EXPECTED TO BE ABLE TO SELL AN ADDITIONAL EIGHT MILLION TONS OF WHEAT AT SUBSIDIZED PRICES OVER THAT PERIOD THE US REPEATEDLY HAD SAID IT WOULDN'T RENEGOTIATE THE BUSHERA FARM AGREEMENT KNOWN AS THE BLAIR HOUSE ACCORD BUT YESTERDAY ADMINISTRATION OFFICIALS FINALLY CONCEDED THAT THEY HAD IN EXCHANGE A SENIOR US TRADE OFFICIAL SAID THE EC AGREED TO DEEPER CUTS IN OVERALL TARIFFS THAN THE US THE US WOULD CUT ITS TARIFFS AN AVERAGE OF 43 THE US SAID WHILE THE EC WOULD CUT ITS TARIFFS AN AVERAGE OF 50 THERE'S A PRICE TO BE PAID FOR WANTING TO NEGOTIATE TWICE ON SOMETHING BUT THE OFFICIAL DIDN'T PROVIDE DETAILS OF THE TARIFF CUTS SO IT WAS HARD TO JUDGE WHETHER THE US GAINED DEEPER CONCESSIONS FROM THE EC THAN IT WOULD HAVE WITHOUT AN AGRICULTURAL DEAL FOR INSTANCE THE US HAS BEEN PUSHING THE EC TO HALVE ITS 14 TARIFFS ON SEMICONDUCTORS IT WASN'T CLEAR YESTERDAY WHETHER THE US HAD ACHIEVED THAT GOAL AND IF IT HAD WHETHER THAT WOULD BE SUFFICIENT TO SATISFY THE POLITICALLY POTENT SEMICONDUCTOR INDUSTRY INDUSTRY LOBBYISTS WANT THE EC TO ELIMINATE ITS COMPUTERCHIP TARIFFS COMPLETELY ALTHOUGH IT'S FAR FROM CERTAIN THAT NEGOTIATORS WILL BE ABLE TO CONCLUDE A WORLD TRADE PACT SIMILAR EFFORTS HAVE COLLAPSED IN EACH OF THE PAST THREE DECEMBERS THE OUTLINES OF A POTENTIAL DEAL ARE BECOMING CLEAR GONE IS THE UTOPIAN NOTION THAT THE GATT TALKS COULD PRODUCE A NEW WORLD ORDER IN TRADE WHERE DEVELOPING NATIONS WOULD OPEN THEIR MARKETS TO US BANKS AND HIGHTECHNOLOGY COMPANIES IN EXCHANGE FOR GREATER ACCESS TO US TEXTILE APPAREL AND FARM MARKETS THE DEAL BEING PUSHED BY THE US AND LARGELY SECONDED BY THE EC IS MUCH NARROWER BUT PROBABLY MORE SALABLE IN CONGRESS IT FEATURES TARIFF REDUCTIONS FOR BIG MANUFACTURERS PLUS SPECIAL EFFORTS FOR SUCH POLITICALLY FAVORED INDUSTRIES AS MOVIES AND TEXTILES US NEGOTIATORS HAVE LARGELY GIVEN UP HOPES OF MAKING BIG STRIDES FOR BANKS AND SECURITIES FIRMS IN THE CURRENT ROUND OF TALKS INSTEAD THEY WANT TO RESERVE THE RIGHT TO MUSCLE SMALLER COUNTRIES LATER ON IN ONEONONE TALKS ON FINANCIAL SERVICES WE'LL WIND UP WITH TARIFF REDUCTIONS AND WITH MORE MODEST STEPS IN THE DIRECTION OF A NEW TRADE AGENDA SAID BOWMAN CUTTER A SENIOR ECONOMIC ADVISER TO PRESIDENT CLINTON THAT CONFORMS MORE WITH REALITY BIG INSTITUTIONS DON'T MOVE IN BIG STEPS SOME HIGHGROWTH INDUSTRIES ASSERT THAT THE CLINTON TEAM IS SHORTCHANGING THEM AND THREATEN TO WITHHOLD SUPPORT THEY'RE WORRIED ABOUT ISSUES LIKE TEXTILES WHICH MORE OR LESS TAKE A DEFENSIVE POSTURE RATHER THAN MAKING GAINS IN HIGHTECH SECTORS SAID HARVEY BALE SENIOR VICE PRESIDENT OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION EVEN THOUGH PHARMACEUTICALS ARE IN LINE FOR TARIFF CUTS MR BALE HAS PRESSED THE ADMINISTRATION TO INSIST ON GREATER PATENT PROTECTION IN DEVELOPING COUNTRIES YESTERDAY MR KANTOR THE TRADE REPRESENTATIVE SAID THAT US PRIORITIES INCLUDE ELIMINATING RESTRICTIONS ON US MOVIES IN EUROPE AND REDUCING EC SUBSIDIES FOR CIVIL AIRCRAFT BUT THE US WILL HAVE TROUBLE ON BOTH FRONTS IN THE CIVILAIRCRAFT DISPUTE THE U S WANTS THE EC TO AGREE TO SLASH GOVERNMENT SUBSIDIES FOR NEW AIRCRAFT WHICH UNDER GATT RULES NOW CAN EQUAL 33 OF A PROJECT'S COST BUT AT THE SAME TIME THE US WANTS TO INCREASE THE SUBSIDIES THAT GOVERNMENTS CAN PROVIDE FOR APPLIED RESEARCH PROJECTS UNDER A DRAFT TRADE AGREEMENT THOSE SUBSIDIES COULDN'T TOTAL MORE THAN 25 OF THE PROJECT'S COST IN ONE OF GATT'S MANY IRONIES THE US HAD INSISTED ON THE 25 SUBSIDY CAP DURING THE BUSH ADMINISTRATION WHICH OPPOSED SOCALLED INDUSTRIAL POLICY NOW THE CLINTON ADMINISTRATION WHICH FAVORS AN ACTIVIST APPROACH TO GOVERNMENT RESEARCH FINDS THE CAP TOO RESTRICTIVE CONCERNING THE MOVIES MR KANTOR SAID HE WAS MINDFUL OF EUROPEAN COMPLAINTS THAT HOLLYWOOD FILMS UNDERMINE LOCAL CULTURE BUT THE US WANTS THE EC TO LIMIT QUOTAS ON US PROGRAMMING SHOWN ON EC TELEVISION AND WANTS A SHARE OF FRENCH TAXES ON BLANK VIDEOTAPES SIR LEON BRITTAN THE EC'S TRADE MINISTER REJECTED THE US STANCE SAYING AMERICAN COMPANIES AREN'T ENTITLED TO THE REVENUE WHICH GOES TO SUBSIDIZE THE FRENCH FILM INDUSTRY 9312080100 931208 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 2 15/16 HIGH 2 LOW 2 NEAR CLOSING BID 2 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 330 30 TO 49 DAYS 325 50 TO 239 DAYS 338 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 343 30 DAYS 342 60 DAYS 342 90 DAYS CERTIFICATES OF DEPOSIT 266 ONE MONTH 271 TWO MONTHS 271 THREE MONTHS 278 SIX MONTHS 303 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 3375 ONE MONTH 3375 THREE MONTHS 342 SIX MONTHS BANKERS ACCEPTANCES 330 30 DAYS 324 60 DAYS 324 90 DAYS 325 120 DAYS 326 150 DAYS 327 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 7/16 3 5/16 ONE MONTH 3 7/16 3 5/16 TWO MONTHS 3 7/16 3 5/16 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 7/16 ONE MONTH 3 7/16 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 610 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY DECEMBER 6 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 327 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 696 60 DAYS 703 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 694 60 DAYS 704 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 9312080099 931208 TEXAS JOURNAL HAVE YOURSELF A MERRY TEXAS CHRISTMAS AN ARRAY OF PRODUCTS MADE BY THE BRAIN OR BRAWN OF TEXANS BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL IF BUY AMERICAN DOESN'T HIT CLOSE ENOUGH TO HOME THIS HOLIDAY SEASON HOW ABOUT BUY TEXAN FROM CARS TO COSMETICS IT'S POSSIBLE TO DECK THE HALLS COMPLETELY WITH TEXASMADE GOODS AS KRISTINE MOSSINGHOFF A MARKETING SPECIALIST AT THE TEXAS DEPARTMENT OF COMMERCE SAYS WE'VE DONE A GOOD JOB OF DIVERSIFYING OUR ECONOMY IT'S NOT JUST OIL AND GAS AND COWS ANYMORE SO PUTTING ASIDE OIL AND GAS AND COWS FOR THE MOMENT HERE'S A SAMPLING OF PRODUCTS EITHER MADE BY THE SWEAT OF TEXAS LABOR INVENTED BY TEXAS ENTREPRENEURS OR DESIGNED BY TEXAS ARTISTS OR ALL OF THE ABOVE DO REAL TEXANS WEAR SLACKS WELL THEY DEFINITELY MAKE THEM HAGGAR APPAREL CO OF DALLAS SAYS ITS NEW WRINKLEFREE COTTON SLACKS WHICH SELL FOR ABOUT 40 ARE CUT AND SEWN AT HAGGAR PLANTS IN THE RIO GRANDE VALLEY MOREOVER THE COMPANY SAYS THAT ABOUT 40 OF THE COTTON USED FOR THE PANTS COME FROM TEXAS HAGGAR BY THE WAY TAKES CREDIT FOR THE EARLIEST MASS PRODUCTION OF PANTS AS WELL AS FOR COINING THE WORD SLACKS IN THE EARLY 1940S HOW ABOUT A KITE DESIGNED TO LOOK LIKE A FALCON WITH ITS WINGS FLAPPING IN THE AIR OR A FLYING PTERODACTYL GAYLA INDUSTRIES INC THE NATION'S BIGGEST MANUFACTURER OF KITES MAKES ALL OF ITS PLASTIC KITES IN TEXAS AT TWO HOUSTONAREA PLANTS ALL THE COMPONENTS ARE BOUGHT IN TEXAS SAYS COMPANY VICE PRESIDENT JOHN MIRCH THE PRICE 2 FOR SIMPLE VARIETIES AND UP TO 15 FOR PLASTIC STUNT KITES COMPAQ COMPUTER CORP SAYS ITS NEW 1399 PRESARIO 425 OCCUPIES 30 LESS SPACE THAN A STANDARD PERSONAL COMPUTER BUT PERHAPS MORE IMPORTANT UNLIKE THE COMPANY'S SMALLER NOTEBOOK COMPUTERS WHICH ARE MADE IN SINGAPORE THE PRESARIO IS ASSEMBLED AT COMPAQ'S HOUSTON PLANT ONE CAVEAT FOR PURISTS THE PARTS COME FROM ALL OVER THE WORLD DEJADISC INC A SAN MARCOS RECORD LABEL THAT SPECIALIZES IN TEXAS SINGERS AND SONGWRITERS SELLS SEVEN COMPACT DISKS AND CASSETTES THAT OFFER ALLTEXAS SELECTIONS AMONG THEM PASTURES OF PLENTY A COLLECTION OF AUSTIN SINGERS PERFORMING SONGS BY WOODY GUTHRIE TRASHMAN SHOES A ROCKANDROLL ALBUM BY THE AUSTIN BAND SHOULDERS AND LOVE & TRUST A COUNTRY FOLKSTYLE COLLECTION OF SONGS BY AUSTIN SINGER MICHAEL FRACASSO IF YOUR KIDS MUST HIT EACH OTHER OVER THE HEAD THEY MIGHT TRY BONK BLOCKS SOFT FABRIC BUILDING BLOCKS FROM RETROTOYS IN DALLAS THE BLOCKS WHICH ARE MADE IN DALLAS USING MATERIALS BOUGHT IN TEXAS COME IN BAGS OF 10 THAT COST ABOUT 9 FOR THE SMALLEST ONES AND 32 FOR THE BIGGEST 4 INCHES BY 6 INCHES BY 12 INCHES THE 1994 CHEVROLET CAPRICE WITH A BASE PRICE OF 18995 WITH DUAL AIR BAGS AND AUTOMATIC TRANSMISSION IS ONE TEXAS PRODUCT THAT ALMOST WASN'T GENERAL MOTORS CORP HAD PLANNED TO CONSOLIDATE ITS CAPRICE PRODUCTION IN EITHER MICHIGAN OR ARLINGTON AFTER HEAVY LOBBYING BY GOV ANN RICHARDS THE COMPANY CHOSE ARLINGTON EFFECTIVE THIS PAST AUGUST SO WHILE ONLY HALF OF ALL CAPRICES USED TO BE MADE IN TEXAS THIS MODEL YEAR ALL OF THE ESTIMATED 80000 CAPRICES WILL BE ASSEMBLED IN GM'S ARLINGTON PLANT WHICH EMPLOYS 3500 OTHER ARLINGTONMADE CARS THE CADILLAC FLEETWOOD WHICH SELLS FOR A BASE PRICE OF 33990 AND THE BUICK ROADMASTER WITH A BASE PRICE OF 23999 CHRISTOPHER JACOBS IS SELLING A GADGET THAT HE CLAIMS WILL FOIL CAR THIEVES THE STOP ACTION DEVICE INVENTED BY MR JACOBS AND SOLD BY HIS MIDLAND COMPANY JACOBS ELECTRONICS INC SELLS FOR 8995 AND FEATURES A HIDDEN SWITCH THAT MUST BE FLIPPED WHEN STARTING THE CAR IF A THIEF STARTS THE CAR WITHOUT FLIPPING THE SWITCH THE VEHICLE WILL SPUTTER AND DIE AFTER MOVING ONLY ABOUT 12 FEET IT CERTAINLY FITS WITH THE ROLLERCOASTER ECONOMY ABOUT 40 OF ALL TRAMPOLINES BOUGHT IN THE US ARE MADE IN TEXAS AT JUMPKING INC'S PLANTS IN GARLAND AND WEATHERFORD JUMPKING HAS GONE THROUGH A NUMBER OF CORPORATE PARENTS SINCE TEXAS ENTREPRENEURS STARTED A FORERUNNER OF THE COMPANY IN THE EARLY 1950S IT IS NOW OWNED BY WESLO INC OF LOGAN UTAH WHICH ITSELF IS A UNIT OF WEIDER FITNESS & HEALTH INC OF WOODLAND HILLS CALIF BUT JUMPKING TRAMPOLINES ARE STILL STITCHED ASSEMBLED AND PACKAGED IN TEXAS RECREATIONAL MODELS RANGE IN PRICE FROM 20 FOR A TINY EXERCISER TO 269 FOR A BACKYARD TRAMPOLINE THAT IS 14 FEET IN DIAMETER WHAT WOULD CHILDREN DO IF THEY COULDN'T BUY TIES FOR THEIR DADS SORRY BUY SOMETHING USEFUL IS NOT THE RIGHT ANSWER SO IF THE KIDS ARE LOOKING FOR A DESIGNEDINTEXAS TIE THEY MIGHT CONSIDER THE MULTICOLORED SILK TIES MADE BY COSETTE ORIGINALS OF AUSTIN THE TIES GO FOR ABOUT 65 AND COME IN 12 COLORS INCLUDING ULTRAVIOLET AND EMERALD THE FADDISH TOPSYTAIL HAIR ARRANGER WHICH SELLS FOR 10 IS A TEXAS SUCCESS STORY THE BESTSELLING PONYTAIL GIZMO WAS CREATED BY TOMIMA EDMARK A 36YEAROLD FROM DALLAS WHEN SHE WAS EXPERIMENTING WITH HER KNITTING NEEDLES IN HER LONG BLOND HAIR THE PLASTIC TOPSYTAILS ARE MADE AT TWO LOCAL PLASTICS FACTORIES INCLUDING ONE OWNED BY MERIDIAN PRODUCTS CORP WHICH IS COOWNED BY DALLAS MAYOR STEVE BARTLETT AND THE INSTRUCTION MANUAL THAT GOES WITH THE TOPSYTAIL IS PRINTED AT A LOCAL SHOP MS EDMARK SAYS THAT SHE HAS THREE COPYRIGHTINFRINGEMENT LAWSUITS PENDING AGAINST COPYCAT PRODUCTS NONE OF WHICH IS MADE IN TEXAS MARY KAY COSMETICS INC OF DALLAS MAKES ABOUT 80 OF ITS PRODUCTS AT ITS REGAL ROW PLANT INCLUDING A HOLIDAY LINE OF COLORCOORDINATED LIPSTICKS FOR 9 AND NAIL POLISHES FOR 5 FOR REBELS STEVE JACKSON GAMES OF AUSTIN MAKES SOME MACABRE ROLEPLAYING GAMES INCLUDING VAMPIRE THE MASQUERADE WHICH SELLS FOR 1995 PLUS ANOTHER 1995 FOR THE COMPANY'S BASIC ROLEPLAYING SET PLAYERS PRETEND THEY ARE VAMPIRES AND MANY DIE ALONG THE WAY ANOTHER GAME FROM STEVE JACKSON CAR WARS IN WHICH PLAYERS CAN BUY WEAPONS AND ARMOR WHILE SEEKING TO DISABLE OTHER PLAYERS' CARS CHOCOLATIER REX MORGEN OFFERS NOVELTIES IN A HOLIDAY THEME ALL POURED AND SCULPTED BY A FEW DOZEN WORKERS IN HIS TINY DALLAS FACTORY THE MOST ELABORATE IS A 20 HOLLOW WHITECHOCOLATE CHRISTMASTREE ORNAMENT INSIDE ARE TINY CHOCOLATE STARS BELLS AND TOYS ON THE SIMPLER SIDE MORGEN CHOCOLATE INC ALSO MAKES MOLDED TOY SOLDIERS ROCKING HORSES AND SNOWMEN ALL SELLING FOR 2 TO 5 APIECE NEED A PAIR OF SHOES WELL YOU'RE GOING TO HAVE A HARD TIME FINDING ANY THAT ARE ACTUALLY MANUFACTURED IN THE STATE BUT YOU CAN FIND SOME THAT ARE DESIGNED BY TEXANS AND SOLD BY TEXAS COMPANIES BEWARE THOUGH THEY AREN'T EXACTLY NORMAL SHOES FOR INSTANCE 30YEAROLD AUSTINITE PETER ALTMAN HAS INVENTED NITEWALKERS SLIPPERS WITH FLASHLIGHTS BUILT IN HIS COMPANY LUMATEC INDUSTRIES INC SELLS ONE VERSION THAT CLICKS ON THROUGH THE HEEL FOR 20 AND A STUFFED BEAGLE VERSION WHICH CLICKS ON BY TOUCHING THE NOSE FOR 30 THEN THERE'S THE KAEPA CLASSIC A TENNIS SHOE WITH DOUBLE LACES THAT WAS INVENTED BY THOMAS ADAMS OF SAN ANTONIO MR ADAMS A FORMER CATHOLIC PRIEST SAYS HE BROKE HIS SHOELACES WHILE PLAYING TENNIS THEN RETIED THEM AT THE BASE OF THE ANKLE HE DISCOVERED THAT A SHOE TIED TWICE IS MORE STABLE MR ADAMS IS NO LONGER ASSOCIATED WITH THE SHOE BUT KAEPA INC OF SAN ANTONIO SELLS IT FOR ABOUT 50 9312080098 931208 TUESDAY'S MARKETS INDUSTRIALS CLIMB 867 TO RECORD BOEING SEARS BOOST GAUGE BONDS EASE AND DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE LIMPED TO A RECORD AMID A MODEST SLUMP IN BOND PRICES THE DOLLAR WAS MIXED THE DOW INDUSTRIALS GAINED 867 POINTS TO 371888 STANDARD & POOR'S 500STOCK INDEX ROSE 033 TO 46676 BUT THE NASDAQ COMPOSITE INDEX FELL 174 TO 76935 THE INDUSTRIAL AVERAGE BEGAN THE DAY ONLY A HALF POINT SHY OF THE PREVIOUS HIGH OF 371077 SET ON NOV 16 IT MANAGED TO EKE OUT ONLY A MEAGER GAIN DESPITE SHARP JUMPS IN BOEING WHICH CLIMBED 2 1/8 TO 41 AFTER SALOMON BROTHERS UPGRADED ITS INVESTMENT RATING ON THE STOCK AND SEARS WHICH ADDED 2 1/8 TO 54 1/4 ON A REBOUND FROM RECENT WEAKNESS THE OVERALL MARKET ALSO WAS SLUGGISH WITH ADVANCING ISSUES BARELY OUTPACING DECLINERS WE'VE ALREADY SEEN THE BIG INITIAL PUSH FROM INVESTORS' CHANGING PERCEPTIONS ABOUT THE ECONOMY SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH NOW WE'RE WAITING FOR SOMETHING NEW TO DEVELOP BUT HE ADDED HE WAS ENCOURAGED THAT THE DOW INDUSTRIALS FINISHED AT A RECORD DESPITE FLAGGING BOND PRICES WHAT WE'VE HAD SINCE MIDOCTOBER IS A STOCK MARKET THAT HAS MANAGED TO HOLD UP QUITE WELL IN THE FACE OF RISING INTEREST RATES HE SAID AMID THE MARKET'S OVERALL LACKLUSTER PERFORMANCE ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS IN ST LOUIS CAUTIONED INVESTORS NOT TO EXPECT FIREWORKS FROM THIS MARKET IT'S A STEADYEDDY BULL MARKET THAT JUST BATTLES ITS WAY UP HE SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 038 TO 10972 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2765 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1053 ISSUES ROSE AND 999 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE SLIPPED LESS THAN 1/8 POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 616 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17020 MARKS AND 10745 YEN COMPARED WITH 17015 MARKS AND 10790 YEN MONDAY 9312080097 931208 RULE OF LAW A CANADIAN JUDGE TRIES UNSUCCESSFULLY TO SILENCE THE MEDIA BY MURRAY B LIGHT BUFFALO NY THE SETTING WAS A QUIET DAY LAST JULY IN THE ONTARIO CITY OF ST CATHARINES A COMMUNITY OF SOME 130000 LOCATED ABOUT 40 MILES FROM BUFFALO VIOLENT CRIME RARELY INTRUDED IN THE LIVES OF RESIDENTS IN THE GARDEN CITY BEHIND THE CLOSED DOORS OF THE COURTROOM THIS JULY 5 ONTARIO JUSTICE FRANCIS KOVACS IMPOSED A RIGID GAG ORDER ON THE PROCEEDINGS OF THE TRIAL OF KARLA HOMOLKA ACCUSED IN THE DEATHS OF TWO LOCAL TEENAGE SCHOOLGIRLS THE JUDGE SAID HIS ORDER WAS INTENDED TO INSURE A FAIR TRIAL LATER FOR HOMOLKA'S ESTRANGED HUSBAND PAUL TEALE WHO IS CHARGED IN CONNECTION WITH THE SAME DEATHS AS WELL AS A MULTITUDE OF RAPES THE BAN THE JUDGE SAID WOULD REMAIN IN EFFECT UNTIL TEALE'S TRIAL LATE IN 1994 OR PERHAPS NOT UNTIL 1995 CANADIAN OFFICIALS VALIANTLY ATTEMPTING TO CARRY OUT THEIR DUTIES OF ENFORCING THE JUDICIAL ORDER HAVE LEARNED HOW DIFFICULT IT IS TO ENFORCE IN A WORLD OF ELECTRONIC BULLETIN BOARDS PERSONAL COMPUTERS AND AN ALLINVASIVE MEDIA ACROSS THE BORDER TODAY FIVE MONTHS AFTER THE JUDGE ISSUED HIS ORDER IT IS THE CENTERPIECE OF A MASSIVE CONTROVERSY THAT HAS CAPTURED MEDIA ATTENTION IN CANADA THE US AND EVEN EUROPE IT IS IRONIC MOST OBSERVERS AGREE THAT HAD THE GAG ORDER NOT BEEN ISSUED INTEREST IN THE CASE WOULD HAVE SLOWLY WITHERED AWAY UNTIL THE TIME FOR THE TEALE TRIAL NEARED BUT FORBIDDEN FRUIT SOWS SEEDS OF HEIGHTENED CURIOSITY NOW IT IS THE JUDGE'S BAN RATHER THAN THE SENSATIONAL MURDER CASE THAT IS IN THE SPOTLIGHT THE WASHINGTON POST ON NOV 23 PUBLISHED A DETAILED ACCOUNT OF THE SERIES OF SEX AND TORTURE KILLINGS ALLEGEDLY COMMITTED BY HOMOLKA AND TEALE A YOUNG MIDDLECLASS COUPLE FROM ST CATHARINES THE STORY WRITTEN BY A MEMBER OF THE POST'S TORONTO BUREAU RECOUNTED MANY BUT CERTAINLY NOT ALL OF THE LURID DETAILS THAT WERE HEARD BY THE 50 OR 60 PERSONS IN THE ST CATHARINES COURT THE PUBLICATION BY THE POST GIVEN WASHINGTON'S DISTANCE FROM CANADA DID NOT STIR MUCH INTEREST IN THE US OR CANADA BUT THAT ALL CHANGED ON SUNDAY NOV 28 WHEN THE BUFFALO NEWS THE DETROIT NEWS AND FREE PRESS PUBLISHED THE POST STORY BOTH OF THESE BORDER CITY NEWSPAPERS HAVE SOME CIRCULATION IN CANADA THE BUFFALO NEWS WAS CONTACTED SATURDAY NOV 27 BY CANADIAN OFFICIALS WHO HAD GOTTEN WIND OF THE FACT THAT IT WAS PLANNING TO REPRINT THE POST STORY THEY OUTLINED TO NEWS CIRCULATION OFFICIALS THE POSSIBLE LEGAL RAMIFICATIONS TO OUR CANADIAN DISTRIBUTORS AND OTHERS IN DISTRIBUTION OF OUR PAPERS IN CANADA GIVEN THIS DEVELOPMENT THE DECISION WAS MADE TO ELIMINATE THE POST STORY FROM THE SUNDAY PAPERS DESTINED FOR CANADA THE CONCENTRATION OF CANADIAN AUTHORITIES AT THE BRIDGE ENTRANCES TO CANADA SUNDAY MORNING PROVED THE DECISION TO BE THE RIGHT ONE NEWS TRUCKS WERE STOPPED EVERY BUNDLE OF PAPERS WAS CHECKED WHEN THE POST STORY WAS NOT FOUND ENTRY INTO CANADA WAS PERMITTED BUT CANADIAN AUTHORITIES COULD NOT LEGALLY STOP CANADIANS THROUGHOUT THE DAY FROM CROSSING OVER INTO THE BUFFALO AREA AND PURCHASING COPIES OF THE NEWS WITH THE STORY OF ONE OF THE MOST HORRENDOUS SENSATIONAL MULTIPLE MURDER CASES IN CANADIAN HISTORY AND CROSS THE BORDER THEY DID IN GREAT NUMBERS UP UNTIL THIS DAY COMPUTER BULLETIN BOARDS AND DATA NETWORKS IN SOUTHERN ONTARIO SPREAD THE RUMORS ABOUT THE CASE THAT HAD BEEN RAPIDLY MULTIPLYING SINCE THE JUDGE'S INFORMATION BAN HAD BEEN IMPOSED NEWS TRAVELS FAST RUMORS EVEN MORE RAPIDLY GIVEN THE OPPORTUNITY TO LEARN THE SOLID FACTS IN A NEWS STORY CANADIANS WERE QUICK TO RESPOND BUT SO TOO WERE CANADIAN AUTHORITIES NIAGARA REGIONAL POLICE PERMITTED PERSONS RETURNING TO CANADA TO TAKE IN ONLY ONE COPY OF THE BUFFALO NEWS OTHER COPIES WERE SEIZED AND 61 PERSONS WERE ARRESTED AND TEMPORARILY DETAINED FOR HAVING MULTIPLE COPIES OF THE NEWS THE EVENTS OF SUNDAY THE 28TH BECAME THE SPARK FOR THE MEDIA BARRAGE THAT FOLLOWED THE DEBATE ON THE PUBLICATION BAN WILL CERTAINLY CONTINUE UNTIL THE JAN 31 APPEAL OF JUDGE KOVACS' ORDER IS HEARD BY A HIGHER CANADIAN COURT THE APPEAL HAS BEEN FILED BY VARIOUS CANADIAN NEWSPAPER AND BROADCAST MEDIA WHATEVER DECISION IS REACHED CERTAINLY WILL NOT STILL THE ARGUMENTS FOR AND AGAINST SUCH COURT ORDERS GIVEN TODAY'S SOPHISTICATED COMMUNICATIONS NETWORKS IT IS DIFFICULT TO BELIEVE THAT ANY CANADIAN INTERESTED IN THE CASE HAS BEEN PREVENTED FROM LEARNING SOME OF THE FACTS AS THE TORONTO GLOBE & MAIL SAID EDITORIALLY DEC 1 WHEN A LAW IS SO WIDELY FLOUTED AND FORCES THE AUTHORITIES TO SUCH LENGTHS TO ENFORCE IT IT IS SOMETIMES A SIGNAL THAT IT WAS MISCONCEIVED TO BEGIN WITH IMPOSITION OF CENSORSHIP DEPRIVES THE CITIZENRY OF THE RIGHT TO KNOW IN A TIMELY MANNER WHAT TRANSPIRES IN THEIR COURTS WAS THE 12YEAR SENTENCE FOR HOMOLKA TOO LENIENT FOR THE CRIMES COMMITTED INTERESTINGLY ENOUGH THE ATTORNEY FOR TEALE OPPOSED THE NEWS BLACKOUT IT WAS ONLY THE PROSECUTION HOMOLKA'S ATTORNEY AND THE JUDGE WHO APPROVED OF IT WERE THEY CONCERNED ABOUT CITIZEN REACTION TO WHAT MOST EXPECT WAS A PLEA BARGAIN STRUCK FOR HOMOLKA HOW CAN INTELLIGENT RATIONAL PUBLIC DISCUSSION OF THE SENTENCE BE CARRIED ON WITHOUT KNOWLEDGE OF WHAT TRANSPIRED CLOSED TRIALS BREED PROBLEMS A BUFFALO NEWS EDITORIAL SAID SECRECY STIRS SUSPICIONS OF DEALS AND COVERUPS IT ALSO BELIES A CERTAIN JUDICIAL ARROGANCE THAT DISTRUSTS THE ABILITY OF CITIZENS TO KNOW THE FACTS EVALUATE THEM AND REACH FAIR CONCLUSIONS BLACKING OUT TELEVISION SIGNALS FROM THE US AND BANNING NEWSPAPERS WITH OFFENDING STORIES SERVES ONLY TO INFURIATE THE CITIZENRY AND GENERATE DISDAIN FOR A SYSTEM THAT FORCES SUCH ODIOUS ANTIDEMOCRATIC PROCEDURES EXPERIENCE IN THE US HAS PROVEN THAT FAIR TRIALS CAN BE HELD DESPITE EVEN AN AVALANCHE OF PUBLICITY ABOUT A CASE THE GOOD THAT HOPEFULLY WILL EMERGE FROM THIS CONTROVERSY IS A REALIZATION THAT THE POWER OF THE COURTS IN CANADA TO CLOSE PROCEEDINGS TO PUBLIC AND PRESS MUST BE MODIFIED IT IS COUNTERPRODUCTIVE AND UNWORKABLE IN THIS AGE OF SOPHISTICATED TELECOMMUNICATIONS IT BREEDS SUSPICION AND RUMORS AND HAS NO PLACE IN A DEMOCRATIC SOCIETY MR LIGHT IS EDITOR AND SENIOR VICE PRESIDENT OF THE BUFFALO NEWS 9312080096 931208 AGNICO'S ACQUISITION OF GOLDEX TORONTO AGNICOEAGLE MINES LTD SAID SHAREHOLDERS OF GOLDEX MINES LTD APPROVED AGNICO'S ACQUISITION OF THE GOLDEX SHARES IT DOESN'T ALREADY OWN AGNICO WHICH HOLDS A MAJORITY STAKE IN GOLDEX WILL ACQUIRE THE REMAINING 46 BY ISSUING 036 OF AN AGNICO COMMON SHARE FOR EACH GOLDEX SHARE FOR A TOTAL OF 27 MILLION AGNICO SHARES AGNICO WHICH HAS 363 MILLION SHARES OUTSTANDING PLANS TO COMBINE GOLDEX WITH AN AGNICO UNIT IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET AGNICO CLOSED AT 14 UP 375 CENTS AND GOLDEX CLOSED AT 5125 UP 375 CENTS BOTH COMPANIES ARE TORONTO MINING CONCERNS AGNICO SAID IT PLANS TO EXPLORE AND DEVELOP A GOLDEX PROPERTY NEAR VAL D'OR QUEBEC IN JANUARY 9312080095 931208 COGNOS RESTRUCTURING CHARGE OTTAWA COGNOS INC SAID IT WILL TAKE A RESTRUCTURING CHARGE OF ABOUT 15 MILLION CANADIAN DOLLARS US11 MILLION FOR THE THIRD QUARTER ENDED NOV 30 THE COMPUTERSOFTWARE COMPANY SAID THE CHARGE WAS A RESULT OF THE IMPACT OF SUBLEASING SOME OF ITS EXCESS OFFICE SPACE COGNOS SAID IT EXPECTS TO REPORT THIRDQUARTER PRETAX PROFIT OF ABOUT C25 MILLION EXCLUDING THE RESTRUCTURING CHARGE ON REVENUE OF ABOUT C375 MILLION THE COMPANY'S THIRDQUARTER RESULTS ARE DUE DEC 21 IN THE 1992 THIRD QUARTER COGNOS HAD A NET LOSS OF C69 MILLION OR 54 CANADIAN CENTS A SHARE ON REVENUE OF C376 MILLION COGNOS ALSO SAID ITS BOARD ADOPTED A SHAREHOLDER RIGHTS PLAN TO PROTECT ITS HOLDERS FROM ACQUISITION TACTICS THAT COULD DENY THEM THE OPPORTUNITY TO REALIZE THE FULL VALUE OF THEIR INVESTMENT 9312080094 931208 CORRECTIONS & AMPLIFICATIONS JOEL E SMILOW CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PLAYTEX FP GROUP INC DIRECTOR THOMAS H LEE SIX OTHER OFFICERS AND DIRECTORS A CHARITABLE TRUST IN MR SMILOW'S NAME AND TRUSTS ON BEHALF OF THE CHILDREN OF VICE CHAIRMAN HERCULES P SOTOS WILL BE PAID ABOUT 58 MILLION FROM THE REDEMPTION OF PREFERRED STOCK THEY HOLD AS PART OF PLAYTEX'S PLANNED RECAPITALIZATION THE GROUP HOLDS 219 OF A TOTAL 265 MILLION IN SERIES B PREFERRED STOCK THAT WILL BE REDEEMED AN ARTICLE THURSDAY INCORRECTLY STATED THAT THE MANAGEMENT GROUP WOULD RECEIVE 265 MILLION FROM THE REDEMPTION OF PREFERRED STOCK WUNDERMAN WORLDWIDE A UNIT OF YOUNG & RUBICAM INC WASN'T A CONTENDER FOR A DIRECTMARKETING ACCOUNT FROM CITICORP'S CITIBANK MONDAY'S ADVERTISING COLUMN INCORRECTLY STATED THAT WUNDERMAN DID COMPETE FOR THE ACCOUNT 9312080093 931208 TEXAS JOURNAL HEARD IN TEXAS ANALYSTS BELIEVE AMBER'S STORES NEEDS MORE POLISH FOR IT TO SHINE BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS AT FIRST BLUSH AMBER'S STORES MIGHT APPEAR TO BE A GOOD VALUE TO INVESTORS SHOPPING FOR A CHEAP STOCK THIS CHRISTMAS SEASON AFTER ALL THE ARTS AND CRAFTS RETAILER'S SHARES HAVE PLUMMETED ABOUT 70 SINCE JANUARY AND NOW TRADE AT ONLY NINE TIMES NEXT YEAR'S PROJECTED EARNINGS BUT MANY ANALYSTS WARN THAT VALUE SHOPPERS SHOULD RESIST THE URGE TO BUY AS THE COMPANY FACES PROBLEMS STEMMING FROM A RAPID EXPANSION AND NEW COMPETITION IN MANY MARKETS THIS COMPANY HAS TO PROVE TO INVESTORS IT CAN PRODUCE SALES AND EARNINGS AND RIGHT NOW THAT IS QUESTIONABLE SAYS CLIFFORD L HAIGLER RESEARCH DIRECTOR AT SOUTHCOAST CAPITAL AUSTIN WHO ONCE WAS A BIG FAN BUT NOW RATES THE STOCK MERELY HOLD WHEN AMBER'S WENT PUBLIC AT 7 A SHARE IN AUGUST 1992 IT WAS PROMOTED AS THE UPANDCOMING COMPETITOR TO CATEGORY KILLER MICHAEL'S STORES BY JANUARY INVESTORS HAD BID UP THE SHARES TO A HIGH OF 1850 HEARTENED BY MONTHS OF STRONG SALES GAINS AND A NINEMONTH EARNINGS REPORT THAT SHOWED A 55 PROFIT INCREASE FROM A YEAR EARLIER SINCE THEN HOWEVER AMBER'S HAS BEEN ON A DOWNSWING ALTHOUGH THE STOCK CLIMBED 22 LAST WEEK ITS PRICE IS STILL ONLY ABOUT 550 A SHARE AND FOR THE THIRD QUARTER ENDED OCT 31 AMBER'S EARNINGS PLUNGED 94 TO 37000 OR ONE CENT A SHARE WHAT'S WORSE EVERY MONTH SINCE MARCH AMBER'S SAMESTORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR HAVE FALLEN NOVEMBER NUMBERS WERE OFF 68 FROM A YEAR EARLIER OCTOBER'S WERE DOWN 16 TO SAY THE LEAST I'VE BEEN VERY DISAPPOINTED MR HAIGLER CONCLUDES WHILE AN ARGUMENT CAN BE MADE THAT AMBER'S MIGHT BE A GOOD BET FOR THE LONG TERM MANY ANALYSTS AREN'T VERY EXCITED ABOUT AMBER'S PROSPECTS IN THE SHORT TERM THROUGHOUT THE YEAR ANALYSTS HAVE CONTINUALLY REVISED DOWNWARD THEIR EARNINGS ESTIMATES FOR THE COMPANY THE CURRENT CONSENSUS IS FOR A PROFIT OF 27 CENTS TO 35 CENTS A SHARE FOR THE FISCAL YEAR ENDING JAN 31 LESS THAN HALF SOME EARLIER FORECASTS A YEAR EARLIER AMBER'S EARNED 65 CENTS A SHARE AMBER'S TWOFOLD PROBLEMS OVERAMBITIOUS GROWTH AND INCREASED COMPETITION HAVE COMBINED TO SQUEEZE PROFIT MARGINS TO 17 THIS YEAR FROM 98 A YEAR EARLIER AND AN ANEMIC RETAIL ENVIRONMENT HASN'T HELPED EITHER IN THE PAST YEAR AMBER'S WHICH OPENED ITS FIRST STORE IN 1985 IN COLLEGE STATION HAS GROWN TO 36 STORES FROM 16 THAT PROVED TO BE FASTER THAN THEY COULD MANAGE SAYS DENNIS TELZROW ANALYST AT EPPLER GUERIN & TURNER IN DALLAS THE LEAD UNDERWRITER FOR AMBER'S INITIAL PUBLIC OFFERING WITH BUYING DISTRIBUTION STORE MANAGERS WITH EVERYTHING THEY DIDN'T HAVE THE PEOPLE IN PLACE TO GROW AS RAPIDLY AS THEY DID ANALYSTS RELATE THAT DURING THE SPRING SHOPPERS FOUND AMBER'S SHELVES DEVOID OF PRODUCTS THAT HAD BEEN ADVERTISED IN WEEKLY FLIERS IT'S WHAT LEGENDARY OHIO STATE FOOTBALL COACH WOODY HAYES WOULD CALL PROBLEMS WITH BLOCKING AND TACKLINGTHE FUNDAMENTALS MR TELZROW SAYS AT THE SAME TIME THE RETAILER FACED NEW COMPETITION IN SMALL MARKETS SUCH AS WACO COLLEGE STATION AND JOPLIN MO WHERE AMBER'S ONCE WAS THE ONLY GAME IN TOWN FROM CHAINS SUCH AS IRVINGBASED MJDESIGNS AND OKLAHOMA CITY'S HOBBY LOBBY STORES RAUSCHER PIERCE REFSNES ANALYST DENNIS VAN ZELFDEN REPORTS THAT IN THOSE MARKETS AMBER'S SAMESTORE SALES HAVE SLUMPED 20 TO 30 WHICH IS VERY SIGNIFICANT WHEN YOU HAVE SUCH A SMALL BASE OF STORES TO BEGIN WITH INDICATIVE OF THE CUTTHROAT COMPETITION AMBER'S FACES IN THE SUBURBS OF FORT WORTH AMBER'S SHARES A PARKING LOT WITH MJDESIGNS WHERE ON A RECENT EVENING AMBER'S HAD THREE CASH REGISTERS OPERATING BUT ONLY TWO TALLYING SALES ITS COMPETITOR OPERATED SEVEN REGISTERS ALL LINED WITH CUSTOMERS STILL THERE ARE SOME SIGNS OF HOPE ANALYSTS NOTE THAT AMBER'S APPEARS TO HAVE CURBED ITS HUNGER FOR RAPID GROWTH THE COMPANY HASN'T OFFICIALLY SAID SO BUT LAMAR ROBERTS AMBER'S CHIEF FINANCIAL OFFICER CONCEDES THAT THERE ARE INDICATORS OUT THERE THAT TELL YOU AMBER'S SHOULD SLOW ITS GROWTH AMBER'S SAID EARLIER THIS YEAR IT PLANS TO GROW TO 50 STORES BY EARLY 1995 HOWEVER MR ROBERTS NOW SAYS THE COMPANY IS COMMITTED TO JUST THREE NEW OUTLETS IN THE COMING YEAR THERE ARE OTHER SIGNS OF ENCOURAGEMENT THE COMPANY HAS RECENTLY BEEFED UP ITS MANAGEMENT INFRASTRUCTURE AMONG OTHER THINGS BY HIRING AS PRESIDENT TRACY J MANDART FORMER PRESIDENT AND CHIEF OPERATING OFFICER AT HJ WILSON CO AN OFFPRICE RETAILING CHAIN AND ALTHOUGH AMBER'S STILL HAS A NUMBER OF MIDLEVEL MANAGERS TO ADD OVER THE COMING YEAR ADMINISTRATIVE EXPENSES SHOULD BEGIN TO FALL BACK IN LINE WITH SALES ANALYSTS EXPECT THE COMPANY TO GENERATE SALES AND EARNINGS GROWTH OF AT LEAST 25 OVER THE NEXT FIVE YEARS MR TELZROW MEANTIME POINTS OUT THAT THE COMPANY IS DEBTFREE AND AT TODAY'S PRICE TRADES AT BARELY ABOVE BOOK VALUE TOTING ALL THESE FACTORS UP MR TELZROW RATES THE COMPANY A LONGTERM BUY ALTHOUGH SHORTTERM HE EXPECTS IT TO CONTINUE STRUGGLING BABBAGE'S THE DALLAS CONSUMER SOFTWARE RETAILER TRADED AT MORE THAN FIVE TIMES ITS AVERAGE DAILY VOLUME AS ITS STOCK TUMBLED MORE THAN 23 LAST WEEK LOSING 6375 A SHARE TO CLOSE AT 21 EARLY IN THE WEEK BABBAGE'S SAID NOVEMBER SAMESTORE SALES WERE OFF 10 AND PERFORMANCE WAS SIGNIFICANTLY HAMPERED BY DISAPPOINTING SALES OF VIDEOGAME SYSTEMS AND SOFTWARE DURING THE THANKSGIVING WEEKEND ANALYSTS NOTE THE WEAK SALES REFLECT THE FACT THAT MASSMERCHANDISERS SUCH AS WALMART AND KMART STORES ARE MOVING IN ON BABBAGE'S TURF WESTCOTT COMMUNICATIONS' SHARES SURGED MORE THAN 11 TO CLOSE AT 42875 AFTER ANNOUNCING FRIDAY THAT IT ACQUIRED TELATRAIN INC CHATTANOOGA TENN FOR 60376 WESTCOTT SHARES THE SHARES HAVE A POSTSPLIT VALUE OF 21 EACH GIVING THE DEAL AN INDICATED VALUE OF 13 MILLION LAST MONTH WESTCOTT ANNOUNCED A 2FOR1 STOCK SPLIT PAYABLE DEC 6 WESTCOTT DALLAS OPERATES SPECIALIZED SATELLITE TV NETWORKS TELATRAIN DEVELOPS AND PRODUCES INSTRUCTIONAL AND TRAINING VIDEOS AND INTERACTIVE COMPUTERSOFTWARE PRODUCTS ORYX ENERGY DALLAS DROPPED MORE THAN 3 A SHARE OR 13 CLOSING AT 1750 MOODY'S INVESTORS SERVICES NOTED THAT THE TREND TOWARD WEAKER OIL PRICES REFLECTED IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES' RECENT DECISION NOT TO SEEK PRODUCTION CUTS WILL PRESSURE INDEPENDENT ENERGY PRODUCERS SUCH AS ORYX BOMBAY CO FORT WORTH JUMPED 475 OR MORE THAN 11 TO CLOSE AT 4675 THE UPSCALE FURNISHINGS RETAILER REPORTED NOVEMBER SAMESTORE SALES WERE UP 24 FROM A YEAR EARLIER THE COMPANY ALSO ANNOUNCED A 3FOR2 STOCK SPLIT PAYABLE DEC 31 TO HOLDERS OF RECORD DEC 14 9312080092 931208 ENTERPRISE FOCUS ON FRANCHISING SUBWAY SANDWICH CHAIN INVESTIGATION BY FTC IS CLOSED BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL A LEGAL CLOUD HAS LIFTED AT THE HUGE SUBWAY CHAIN THE FEDERAL TRADE COMMISSION HAS FORMALLY CLOSED AN INVESTIGATION OF THE FRANCHISEMARKETING PRACTICES OF DOCTOR'S ASSOCIATES INC FRANCHISER OF THE POPULAR SUBWAY SANDWICHES & SALADS FORMAT THE FRANCHISER WAS INFORMED OF THE DECISION NOV 15 AN FTC SPOKESWOMAN CONFIRMED YESTERDAY AS A MATTER OF POLICY THE FTC HADN'T PREVIOUSLY ACKNOWLEDGED THE EXISTENCE OF ITS PROBE ACCORDING TO THE FRANCHISER AN INFORMAL INQUIRY BECAME A FORMAL INVESTIGATION LAST MARCH WHEN THE FTC MADE BROAD REQUESTS FOR DOCUMENTS FROM THE CHAIN THE PROBE APPEARED TO WIDEN IN JUNE WHEN SOME FRANCHISEES SAID THE FTC WAS CONDUCTING A CONFIDENTIAL SURVEY OF MANY CURRENT AND FORMER SUBWAY FRANCHISEES IT ISN'T CLEAR EXACTLY WHAT THE FTC WAS LOOKING FOR IN ITS INVESTIGATION BUT SOME CURRENT AND FORMER SUBWAY FRANCHISEES HAVE COMPLAINED THAT THE FRANCHISER MISLED THEM ABOUT PROSPECTIVE SALES AND EARNINGS DOCTOR'S ASSOCIATES HAS ACKNOWLEDGED THAT MANY SUBWAY FRANCHISES ARE UNPROFITABLE BUT IT DEFENDS ITS MARKETING PRACTICES THE FTC TOLD DOCTOR'S ASSOCIATES THAT IT NOW APPEARS THAT NO FURTHER ACTION IS WARRANTED BY THE COMMISSION AT THIS TIME THE AGENCY DIDN'T EXPLAIN WHY IT DROPPED THE INVESTIGATION SUBWAY WOULD MUCH RATHER FOCUS ON STRENGTHENING ITS FRANCHISE SYSTEM THAN ON WRANGLING WITH THE REGULATORY AUTHORITIES AND WE ARE PLEASED THAT THIS MATTER IS BEHIND US SAYS NEIL A SIMON A WASHINGTON DC LAWYER WHO REPRESENTED DOCTOR'S ASSOCIATES DURING THE FTC PROBE AS USUAL THE FTC SAYS THAT CLOSURE OF THE INVESTIGATION SHOULDN'T BE SEEN AS A FINDING THAT NO VIOLATIONS OCCURRED THE FEDERAL AGENCY ALSO SAYS IT RESERVES THE RIGHT TO TAKE SUCH FURTHER ACTION AS THE PUBLIC INTEREST MAY REQUIRE SOUTH AFRICA DRAWS MORE FRANCHISERS BUT SOME REMAIN SKITTISH WITH APARTHEID ABOLISHED AND FREE ELECTIONS SCHEDULED FOR APRIL THE STILLTROUBLED NATION NOW IMPRESSES MANY US FRANCHISERS AS A MARKET WORTH ENTERING RELATIVELY UNTAPPED SOUTH AFRICA IS ONE OF THE MORE LUCRATIVE MARKETS TO LOOM FOR MASTER LICENSEES AND FRANCHISEES SAYS JOSEPH R LUNSFORD CHAIRMAN OF FRANCHISE CONCEPTS INC THE ATLANTA MANAGEMENT COMPANY FOR FOUR FRANCHISE CHAINS ONE CHAIN PROFESSIONAL CARPET SYSTEMS SIGNED ON A MASTER LICENSEE IN JOHANNESBURG IN SEPTEMBER 1992 THE FIRST FRANCHISE IS TO OPEN IN FEBRUARY AND THE MASTER LICENSEE EXPECTS TO OVERSEE AT LEAST 100 FRANCHISES WITHIN FIVE YEARS MR LUNSFORD SAYS MICHAEL A AMIES VICE PRESIDENT OF SIBLEY INTERNATIONAL A WASHINGTON CONSULTING FIRM SAYS THERE'S A BURNING ENTREPRENEURIAL SPIRIT IN SOUTH AFRICA ESPECIALLY AMONG BLACKS WHOSE AMBITIONS WERE LONG FRUSTRATED SOME PEOPLE SEE FRANCHISING WITH ITS ABILITY TO CREATE RETAIL AND DISTRIBUTION NETWORKS QUICKLY AS PRECISELY WHAT SOUTH AFRICA'S DEPRESSED REGIONS WILL NEED TO BUILD UP THEIR SMALLBUSINESS SECTORS THUS SIBLEY HAS A CONTRACT WITH THE US AGENCY FOR INTERNATIONAL DEVELOPMENT TO PROMOTE THE FRANCHISING CONCEPT IN SOUTH AFRICA BESIDES INTRODUCING US FRANCHISERS TO SOUTH AFRICA SIBLEY IS ENCOURAGING BLACKOWNED BUSINESSES THERE TO BECOME FRANCHISERS OF COURSE SOME US FRANCHISERS STILL EXPRESS RESERVATIONS ABOUT MOVING INTO SOUTH AFRICA AND SIBLEY SAYS NONE OF THE BESTKNOWN CHAINS ARE THERE CURRENTLY FUTUREKIDS INC A LOS ANGELES FRANCHISER OF COMPUTERTRAINING SERVICES SAYS IT IS NEGOTIATING WITH THREE SOUTH AFRICAN GROUPS INTERESTED IN BECOMING MASTER LICENSEES OR FRANCHISEES BUT THIS ISN'T A MAJORITY PRIORITY FOR US BECAUSE WE STILL HAVEN'T BEEN TO BRITAIN OR GERMANY SAYS PETER MARKOVITZ FUTUREKIDS PRESIDENT IT SEEMS POSSIBLE THERE COULD STILL BE A CIVIL WAR IN SOUTH AFRICA WARNS MR MARKOVITZ WHO WAS BORN IN THAT COUNTRY AND STILL HAS FAMILY THERE IOWASTYLE CURBS FEARED BY FRANCHISERS FAIL TO SPREAD SO FAR IOWA'S FRANCHISE LAW WHICH TOOK EFFECT LAST YEAR GAVE FRANCHISEES BROADER RIGHTS SUCH AS PROTECTION OF THEIR TERRITORIES FROM ENCROACHMENT THE ACT ALSO HELPED START BATTLES THIS YEAR FOR LOOSELY SIMILAR LAWS IN AT LEAST EIGHT OTHER STATES INCLUDING CALIFORNIA NEW YORK AND TEXAS SO FAR NO SUCH CURBS HAVE BEEN APPROVED SAYS DAVID J KAUFMANN A NEW YORK ATTORNEY FOR FRANCHISERS IN ADDITION LAWYERS SAY MILDER MEASURES TO CURB FRANCHISERS WERE PROPOSED THIS YEAR IN AT LEAST FOUR STATES BUT NONE HAS BEEN ENACTED IT MAY BE WISHFUL THINKING HOWEVER FOR FRANCHISERS TO CONCLUDE THAT MOST LEGISLATORS BELIEVE FRANCHISING ISN'T BROKEN AND DOESN'T NEED TO BE FIXED MOST LEGISLATORS STILL KNOW LITTLE ABOUT FRANCHISING IT'S NOT AN ISSUE ON THE FRONT BURNER IN MOST STATES SAYS MR SIMON THE WASHINGTON LAWYER FOR DOCTOR'S ASSOCIATES AND OTHERS TOUGH FRANCHISING BILLS MOST LIKELY WILL REAPPEAR NEXT YEAR IN SEVERAL OF THE SAME STATES PLUS SOME NEW ONES HE ADDS OTHERS PREDICT THAT THE NEXT MAJOR FIREFIGHT BETWEEN FRANCHISERS AND FRANCHISEES WILL TAKE PLACE EARLY NEXT YEAR IN FLORIDA FASTFOOD FRANCHISEES THERE HAVE BEEN PUSHING FOR A FRANCHISE LAW EVEN TOUGHER THAN IOWA'S FRANCHISERS ARE CHALLENGING THE IOWA LAW AS UNCONSTITUTIONAL A FEDERAL COURT IN DES MOINES ALREADY HAS SHOT DOWN ONE ASPECT OF THE LAW ITS CLAIM TO APPLY RETROACTIVELY TO OLD CONTRACTS THAT RULING IS BEING APPEALED THE US SUPREME COURT HAS REFUSED TO REVIEW A CLOSELY WATCHED SOUTH CAROLINA COURT RULING THAT UPHELD THE STATE'S TAXATION OF ROYALTIES PAID BY TOYS R US INC TO ITS GEOFFREY INC UNIT THE REFUSAL REINFORCES FRANCHISERS' FEARS THAT MORE STATES WILL SEEK TO TAX ROYALTY INCOME EVEN IF FRANCHISERS DON'T HAVE ANY EMPLOYEES OR TANGIBLE PROPERTY IN THE STATES ALTHOUGH GEOFFREY ISN'T A FRANCHISER THE REASONING THAT SOUTH CAROLINA USED TO TAX GEOFFREY MIGHT ALSO APPLY TO FRANCHISERS BRIEFS RHODEWORTHY ENTERPRISES INC THE JEFFERSONVILLE PA FRANCHISER OF HOMETOWN AUTO SERVICE OUTLETS OFFERS ITS 11 FRANCHISEES ANNUAL GETAWAY WEEKENDS THE FIRM'S PRESIDENT DAVID RHODE AND OTHER TOP OFFICIALS WILL FILL IN GRATIS FOR ABSENT FRANCHISEES PIRATE COPIES OF CONTINENTAL FRANCHISE REVIEW APPEAR PROMPTING THE ENGLEWOOD COLO NEWSLETTER TO REMIND SUBSCRIBERS OF ITS COPYRIGHT A NEW ONEHOUR VIDEOTAPE PRODUCED BY THE PRACTICING LAW INSTITUTE AND THE INTERNATIONAL FRANCHISE ASSOCIATION EXPLAINS SWEEPING CHANGES THAT FRANCHISERS SOON MAY HAVE TO MAKE IN THEIR OFFERING CIRCULARS FRANCHISERS MUST COMPLY WITH STATE DISCLOSURE RULES THAT ARE EXPECTED TO BE STRENGTHENED SOON 9312080091 931208 MARKETING & MEDIA TIMES MIRROR EXPECTS SLOW START' IN '94 HINTS AT MORE STAFF CUTS CONSOLIDATIONS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL TIMES MIRROR CO SIGNALING CONTINUING DIFFICULTIES AT ITS FLAGSHIP LOS ANGELES TIMES NEWSPAPER AND IN ITS ONCEBOOMING LEGAL PUBLISHING UNIT SAID IT EXPECTS A SLOW START IN 1994 BUT THE COMPANY ADDED THAT IT WILL REPORT IMPROVED OPERATING RESULTS IN THE CURRENT FOURTH QUARTER THE LOS ANGELESBASED MEDIA CONCERN WHICH DIDN'T SPECIFICALLY PROJECT EARNINGS FOR EITHER THE FOURTH QUARTER OR NEXT YEAR HINTED AT PLANS FOR MORE STAFF REDUCTIONS AND CONSOLIDATIONS BY YEAREND THE COMPANY DIDN'T ELABORATE BUT IT IS THOUGHT THAT THESE LATEST CONSOLIDATIONS ARE MOST LIKELY IN THE NONNEWSPAPER OPERATIONS IN ITS MOST THOROUGH PUBLIC DISCUSSION OF ITS MATTHEW BENDER & CO LEGAL PUBLISHING UNIT TIMES MIRROR SAID THAT WHILE OPERATING PROFIT AT THE UNIT IS DOWN LESS THAN 10 THIS YEAR FROM 1992 PROFIT AND REVENUE WILL CONTINUE TO DROP NEXT YEAR THE MATTHEW BENDER UNIT OFTEN OVERLOOKED BY OUTSIDERS IS BELIEVED BY ANALYSTS TO HAVE PROVIDED NEARLY ONETHIRD OF TIMES MIRROR'S OPERATING PROFIT IN RECENT YEARS THE DISCLOSURES WERE MADE YESTERDAY IN WIDERANGING REMARKS TO FINANCIAL ANALYSTS BY SEVERAL OF THE COMPANY'S TOP OFFICERS AT THE ANNUAL PAINEWEBBER GROUP INC MEDIA CONFERENCE IN NEW YORK LITTLE AFFECTED BY THE NEWS TIMES MIRROR STOCK FELL 125 CENTS TO 34875 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ROBERT F ERBURU CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT PROFIT CONTINUES TO BE DEPRESSED AT THE LOS ANGELES TIMES BY REGIONAL CONDITIONS WE AREN'T COUNTING ON MUCH IF ANY IMPROVEMENT IN THE SOUTHERN CALIFORNIA ECONOMY HE TOLD ANALYSTS NEW RATE REGULATIONS ALSO WILL HAMPER RESULTS IN THE COMPANY'S CABLETELEVISION OPERATIONS HE SAID MR ERBURU SAID TIMES MIRROR'S NET INCOME FOR 1993 WILL INCLUDE 145 PER SHARE IN ONETIME GAINS WHICH HAVE BEEN ANTICIPATED HE SAID THE RESULTS ALSO WILL INCLUDE 30 CENTS A SHARE IN ONETIME CHARGES THE FIRST TIME CHARGES OF THIS SIZE HAVE BEEN MENTIONED BY THE COMPANY AND THE APPARENT INDICATOR OF FURTHER CONSOLIDATIONS IN THE CURRENT QUARTER IN THE FIRST NINE MONTHS OF THIS YEAR TIMES MIRROR HAS REPORTED ONETIME GAINS OF 39 CENTS A SHARE IMPLYING THAT FOURTHQUARTER GAINS WILL TOTAL ABOUT 106 A SHARE TO DATE THE COMPANY HAS REPORTED TWO CENTS A SHARE IN CHARGES INDICATING FOURTHQUARTER CHARGES OF ABOUT 28 CENTS A SHARE IN CHARGES IN THE 1992 FOURTH QUARTER TIMES MIRROR REPORTED A NET LOSS OF 617 MILLION OR 48 CENTS A SHARE ON 101 BILLION IN REVENUE RESULTS AS REPORTED AT THE TIME INCLUDED ONETIME CHARGES TOTALING 86 CENTS A SHARE FOR PERSONNEL CUTS AT THE LOS ANGELES TIMES AND STAFF REDUCTIONS AND OTHER CHANGES AT THE MATTHEW BENDER UNIT WITH ADJUSTMENTS TO REFLECT ACCOUNTING CHANGES AFTERTAX PROFIT FROM OPERATIONS IN THE YEARAGO QUARTER TOTALED 34 CENTS A SHARE MR ERBURU WAS POINTING TO THIS FIGURE AS THE BASE FROM WHICH OPERATING PROFIT IS EXPECTED TO CLIMB THIS QUARTER MR ERBURU TOGETHER WITH RICHARD T SCHLOSBERG III NEWLYNAMED EXECUTIVE VICE PRESIDENT RESPONSIBLE FOR NEWSPAPER OPERATIONS SAID THAT SIGNS OF IMPROVEMENT ARE EMERGING AT TIMES MIRROR'S EASTERN PUBLICATIONS WHICH INCLUDE NEWSDAY NEW YORK NEWSDAY THE BALTIMORE SUN AND THE HARTFORD COURANT MARGINS AT NEWSDAY ESPECIALLY ARE IMPROVING AFTER STAFF CUTS AND OTHER COST REDUCTIONS AND A RECENT UPTURN IN ADVERTISING LINAGE MR SCHLOSBERG SAID MR SCHLOSBERG SAID THAT CIRCULATION FOR TIMES MIRROR'S NEWSPAPERS IS EXPECTED TO BE RELATIVELY FLAT IN 1994 HE SAID ADVERTISING RATES ARE EXPECTED TO INCREASE ABOUT 4 NEXT YEAR AT THE EASTERN NEWSPAPERS HOWEVER AT THE LOS ANGELES TIMES ADVERTISING GROWTH WILL DEPEND ON THE REGIONAL ECONOMY HE SAID MOREOVER COST REDUCTIONS WILL CONTINUE TO BE IMPERATIVE FOR MEANINGFUL MARGIN IMPROVEMENT SAID MR SCHLOSBERG SUGGESTING THAT MORE STAFF CUTS COULD BE IN THE OFFING AT THE LOS ANGELES TIMES WHERE SOME 2000 POSITIONS OR ABOUT 25 OF THE WORK FORCE HAVE BEEN ELIMINATED SINCE 1990 OVERALL WE EXPECT MODEST REVENUE GROWTH BUT SUBSTANTIAL PROFIT IMPROVEMENT NEXT YEAR IN THE NEWSPAPER GROUP MR SCHLOSBERG ADDED ON THE NONNEWSPAPER SIDE WHICH RECENTLY HAS ACCOUNTED FOR NEARLY HALF OF TIMES MIRROR'S REVENUE AND ABOUT THREEQUARTERS OF ITS OPERATING PROFIT RESULTS CONTINUE TO BE HAMPERED BY THE DOWNTURN AT THE MATTHEW BENDER UNIT THE UNIT'S FORTUNES HAVE TUMBLED WITH THE 1990S DECLINE IN THE LAW TRADE SAID CURTIS A HESSLER MR HESSLER NEWLYNAMED EXECUTIVE VICE PRESIDENT IN CHARGE OF THE NONNEWSPAPER OPERATIONS SAID RESULTS CONTINUE TO BE STRONG IN OTHER PARTS OF THE TECHNICAL PUBLISHING BUSINESS MR HESSLER ALSO ANNOUNCED THAT TIMES MIRROR HAS FORMED TWO UNNAMED BUSINESS GROUPS TO PURSUE NEW CONSUMERMEDIA INTERESTS ONE GROUP WILL DEVELOP SPECIALINTEREST TELEVISION CHANNELS HE SAID THE OTHER WILL CREATE MULTIMEDIA ENTERTAINMENT AND EDUCATIONAL SOFTWARE FOR CONSUMER USE ANN E DILWORTH VICE PRESIDENT INTERNATIONAL WILL ASSUME RESPONSIBILITY FOR THE GROUPS MR HESSLER SAID 9312080090 931208 EPA SETS RULE CONCERNING RADIOACTIVEWASTE STORAGE WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY SAID THE PUBLIC MUST BE PROTECTED FROM THE EFFECTS OF LONGTERM STORAGE OF RADIOACTIVE WASTE FOR 10000 YEARS BUT THE FINAL RULE WHICH WAS ISSUED YESTERDAY APPLIES ONLY TO THE ENERGY DEPARTMENT'S WASTE ISOLATION PILOT PLANT A CONVERTED SALT MINE NEAR CARLSBAD NM WHERE THE DEPARTMENT PLANS TO STORE RADIOACTIVE WASTE FROM NUCLEAR WEAPONS PLANTS UNDER PREVIOUS REGULATIONS ISSUED IN 1985 THE FACILITY WOULD HAVE BEEN REQUIRED TO PROTECT THE PUBLIC FROM THE RELEASE OF SUCH WASTE FOR ONLY 1000 YEARS THE NEW RULE DOESN'T SPECIFY HOW TO ENSURE THE LONGERTERM PROTECTION BUT A SPOKESWOMAN SAID THE EPA WOULD ISSUE COMPLIANCE CRITERIA NEXT YEAR 9312080089 931208 POSTAL SERVICE POSTS LOSS OF 371 MILLION FOR 1993 WASHINGTON THE POSTAL SERVICE SAID IT HAD A 371 MILLION LOSS FOR FISCAL 1993 SIGNIFICANTLY SMALLER THAN THE 500 MILLION DEFICIT PROJECTED EARLIER BY POSTAL OFFICIALS THE AGENCY ALSO SAID IT HAS ELIMINATED THROUGH RESTRUCTURING ABOUT 25000 JOBS THAT DON'T INVOLVE THE PROCESSING AND DELIVERY OF MAIL LAST YEAR THE AGENCY REDUCED ITS WORK FORCE BY 47000 LARGELY THROUGH EARLY RETIREMENTS POSTAL SERVICE OFFICIALS SAID THE NARROW LOSS WOULDN'T AFFECT THE AGENCY'S PLAN TO INCREASE POSTAGE RATES IN 1995 YESTERDAY IN A SPEECH TO THE POSTAL GOVERNING BOARD POSTMASTER GENERAL MARVIN RUNYON SAID THE AGENCY ALSO PAID 537 MILLION IN ONETIME DEBTREFINANCING COSTS AND REIMBURSED THE FEDERAL GOVERNMENT 850 MILLION FOR PAST RETIREMENT COSTS OF POSTAL EMPLOYEES 9312080088 931208 HUGHES AIRCRAFT SEEKS TO LAUNCH PHONE SERVICE GM UNIT COULD HOOK UP WITH INDUSTRY PLAYERS ON THE SATELLITE SYSTEM BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES HUGHES AIRCRAFT CO PLANS TO BUILD A 660 MILLION SATELLITE SYSTEM THAT WOULD VAULT THE COMPANY INTO THE HEATED MARKET FOR US LONGDISTANCE AND SPECIALIZED TELEPHONE SERVICES EXECUTIVES OF HUGHES GENERAL MOTORS CORP'S AEROSPACE UNIT CONFIRMED THEIR APPLICATION TO THE FEDERAL COMMUNICATIONS COMMISSION FOR PERMISSION TO LAUNCH AND OPERATE TWO HIGHPOWERED SATELLITES IN 1998 THE HIGHFREQUENCY SATELLITE SYSTEM CALLED SPACEWAY WOULD ACCOMMODATE MORE THAN 11500 SIMULTANEOUS TWOWAY VIDEO DATA OR VOICE TRANSMISSIONS ON DEMAND FROM HOMES AND BUSINESSES THROUGH THE USE OF NEW LOWPOWER TRANSMITTERS AND 26INCHWIDE DISHES IF THE PLAN IS APPROVED HUGHES MIGHT EVENTUALLY HOOK UP WITH EXISTING PLAYERS IN THE LONGDISTANCE BUSINESS ALTHOUGH IT IS ALSO LIKELY TO BE AN OPERATOR ON ITS OWN HUGHES'S PLATE ALREADY IS FULL OF EXPENSIVE NEW VENTURES THAT THE COMPANY HOPES WILL TAKE ADVANTAGE OF ITS LEADING POSITION IN THE SATELLITE BUSINESSVENTURES THAT COULD INCREASINGLY CHALLENGE GROUNDBASED TELEPHONE AND CABLE COMPANIES NEXT WEEK THE COMPANY WILL LAUNCH THE FIRST OF TWO SATELLITES FOR ITS 600 MILLION DIRECTV SATELLITETOHOME TELEVISION SERVICE THE SERVICE BEGINS IN 1994 AND WILL OFFER AS MANY AS 150 CHANNELS OF ENTERTAINMENT SPORTS AND SPECIALINTEREST PROGRAMMING WHEN FULLY OPERATIONAL HUGHES'S TOP MANAGEMENT SAYS IT IS MEASURING THE RISKS CAREFULLY IF YOU JUST LEAP INTO THESE THINGS THERE COULD BE PROBLEMS SAID STEVEN D DORFMAN SENIOR VICE PRESIDENT OF HUGHES'S SPACE AND TELECOMMUNICATIONS OPERATIONS BUT HE ADDED AS A CONSEQUENCE WE MOVE CAUTIOUSLY AND WITH GOOD RISK MANAGEMENT TECHNICALLY AND FINANCIALLY HUGHES MANAGERS SAID THAT WITH THE LATEST VENTURE AS WITH DIRECTV THEY ARE LIKELY TO REDUCE THEIR FINANCIAL EXPOSURE BY TAKING ON PARTNERS IN THE SATELLITETOHOME TV PROJECT INVESTMENTS FROM US SATELLITE BROADCASTING INC OF ST PAUL MINN AND FROM A NATIONAL RURAL TV COOPERATIVE MAKE UP MORE THAN 40 OF THE TOTAL COST OF THE PROJECT IN EXCHANGE FOR SERVICES OR USE OF SATELLITE CAPACITY WITH SPACEWAY WHICH HUGHES HOPES WILL ATTRACT 600000 SUBSCRIBERS EVENTUAL PARTNERS AND CUSTOMERS COULD INCLUDE SUCH BIG PLAYERS IN LONGDISTANCE AS AMERICAN TELEPHONE & TELEGRAPH CO MCI COMMUNICATIONS CORP SPRINT CORP OR IF REGULATORY RESTRICTIONS ARE RELAXED AMERITECH CORP AND OTHER BABY BELL COMPANIES PEOPLE FAMILIAR WITH HUGHES'S LATEST EFFORT SAID THE COMPANY ALREADY HAS TESTED THOSE WATERS IN TALKS WITH SOME TELEPHONESERVICE PROVIDERS AMONG THEM SOUTHWESTERN BELL CORP THERE WILL BE LOTS OF OPPORTUNITIES FOR REGIONAL OPERATING COMPANIES TO PARTICIPATE SAID PAUL BACHAR CHIEF OF HUGHES'S NEWVENTURES UNIT FOR TELECOMMUNICATIONS AT HUGHES SPACEWAY IS BEING TOUTED LARGELY AS A SUPPLEMENT TO GROUND TELEPHONE LINES INCLUDING NEW FIBEROPTIC NETWORKS DESIGNED TO CARRY HIGH DATARATE CALLS SUCH AS THOSE FOR VIDEO TELEPHONES AND COMPUTER TRANSMISSIONS BUT MR DORFMAN SAID THAT IN BRIEFING FCC OFFICIALS ON THE PROPOSAL HE FOUND THE REGULATORS RECEPTIVE TO SPACEWAY AS A SERVICE TO CHALLENGE GROUNDBASED SYSTEMS COMPETITIVELY EVEN SO THE HUGHES PROPOSAL STILL MUST WIN APPROVAL OVER OTHER APPLICANTS FOR THE SAME PART OF THE LITTLEUSED KABAND RADIO FREQUENCY SPECTRUM INCLUDING THOSE WHO WANT TO USE IT FOR CELLULARTV BROADCASTS THE FCC COULDN'T CONFIRM HUGHES'S APPLICATION LATE YESTERDAY AN EDGE FOR HUGHES IS THAT ITS PROPOSAL WILL OFFER SERVICE ANYWHERE IN THE US WHERE A CUSTOMER INSTALLS RECEIVING AND SENDING EQUIPMENT WHILE COMPETITORS WILL DEVELOP SIMILAR SYSTEMS EVENTUALLY HUGHES THINKS IT CAN GRAB THE LEAD BECAUSE OF MARKET KNOWLEDGE ACQUIRED FROM SELLING PRIVATE COMPANYWIDE SATELLITE NETWORKS TO CHEVRON CORP WALMART STORES INC AND OTHERS SUCH SYSTEMS USE SMALL SATELLITE DISHES FOR CONFERENCING SENDING FINANCIAL DATA CREDITCARD APPROVALS AND OTHER APPLICATIONS SPACEWAY THOUGH DOESN'T REQUIRE COMMUNICATION TRANSFERS THROUGH CENTRAL SWITCHING HUBS AND CAN CARRY SUCH TRANSMISSIONS AS MEDICAL XRAYS OR COMPLEX MULTIMEDIA COMPUTER IMAGES WITH MUCH HIGHER DATA VOLUMES IT ALSO COULD BE USED FOR HOME VIDEOTELEPHONE CALLS AS WITH ITS DIRECTV VENTURE HUGHES AIMS FOR THE HARDWARE TO COST LESS THAN 1000 FOR EACH SYSTEM COMPARED WITH 10000 FOR COMPARABLE EQUIPMENT NOW PERCALL CHARGES ALSO WILL HAVE TO BE COMPETITIVE WITH GROUND SYSTEMS IF HUGHES IS TO ATTRACT THE 600000 SUBSCRIBERS IT WANTS UNDERPINNING SPACEWAY IS LOWPOWER HOMETRANSMISSION TECHNOLOGY THAT EFFICIENTLY COMPRESSES DIGITAL SIGNALS AND PROCESSORS ON BOARD ITS SATELLITES THAT CAN RECEIVE AND REROUTE MICROWAVES TO TELEPHONE COMPANIES BUSINESSES AND HOMES ON THE GROUND HUGHES ALSO ENVISIONS SPOT BEAM TRANSMITTERS ON THE SATELLITES DIVIDING THE US INTO 24 REGIONS FOR DIRECTING CALLS 9312080087 931208 TEXAS JOURNAL DEAR SADDAM ENCLOSED ARE MAPS AND KEYS TO BY MARJORIE NEEDHAM HOUSTON A MOCK TERRORIST ATTACK AGAINST HOUSTON LIGHTING & POWER CO'S SOUTH TEXAS NUCLEAR POWER PLANT BLEW UP BEFORE IT COULD GET STARTED ITS PROBLEMS BEGAN WHEN RUDERFINN INC A CHICAGO PUBLICRELATIONS FIRM INVITED REPORTERS FROM AT LEAST A DOZEN NEWSPAPERS TO WATCH A TEAM OF RENTATERRORISTS' ATTEMPT TO INFILTRATE THE MATAGORDA COUNTY PLANT ON MONDAY HOUSTON LIGHTING & POWER IS WILLING TO LET THE MEDIA OBSERVE WELL MAYBE NOT THAT WILLING HL&P A HOUSTON INDUSTRIES INC UNIT SAYS IT OCCASIONALLY ALLOWS REPORTERS TO ATTEND MORE CONVENTIONAL SECURITY TRAINING SESSIONS BUT NEVER LETS ANYONE SEE A MOCK ATTACK YOU WOULD BE PROVIDING A VISUAL OUTLINE FOR SOMEBODY WHO WANTS TO BREACH THE SECURITY SYSTEM A PLANT SPOKESMAN SAYS MOREOVER HL&P SAYS THE WOULDBE ATTACKERS DENNIS COLLINS AND HIS COMPANY NUCLEAR SECURITY SERVICES CORP OF CLARENDON HILLS ILL WILL BE AT THE PLANT ON MONDAY ONLY TO PROVIDE SECURITY INSTRUCTION REPORTERS WELCOME THEY WON'T CARRY OUT A MOCK ASSAULT THOUGH THEY DO TRY TO SEIZE THE PLANT ON A REGULAR BASIS MR COLLINS SAYS THEY HAVE NEVER SUCCEEDED IT WAS ON MR COLLINS'S BEHALF THAT RUDERFINN INVITED THE PRESS BUT EVEN HE SEES THE WISDOM OF NOT HAVING SPECTATORS FOR ASSAULTS ON THE PLANT IF WE DID THE BAD GUYS MIGHT BE OUT THERE LYING IN THE BUSHES TO SEE WHAT THEY CAN LEARN HE SAYS KRISTEN IZYDOR A RUDERFINN ACCOUNT EXECUTIVE FOR THE SECURITY FIRM SAYS SHE IS UNDER ORDERS FROM HL&P TO REFER ALL INQUIRIES TO THE UTILITY I DON'T KNOW WHAT TO TELL YOU SHE SAYS 9312080086 931208 TEXAS JOURNAL ECONOMIC FOCUS THE ABATEMENT BOOM ARE CITIES TOO GENEROUS BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL BERNARD WEINSTEIN IS ADAMANT THAT APPLE COMPUTER INC SHOULDN'T GET A TAX ABATEMENT IN EXCHANGE FOR BUILDING A NEW 80 MILLION FACILITY IN WILLIAMSON COUNTY BUT UNLIKE MOST OPPONENTS THE UNIVERSITY OF NORTH TEXAS ECONOMIST ISN'T CONCERNED ABOUT THE COMPUTER COMPANY'S POLICY OF PROVIDING HEALTHCARE BENEFITS TO PARTNERS OF HOMOSEXUAL EMPLOYEES RATHER HE ARGUES ABATEMENTS IN GENERAL ARE BAD PUBLIC POLICY TAX ABATEMENTS HAVE JUST GOTTEN OUT OF HAND HE SAYS MANY COMMUNITIES ARE GIVING AWAY THE STORE INDEED THE HOOPLA OVER WILLIAMSON COUNTY COMMISSIONERS' CONTROVERSIAL DECISION LAST WEEK TO DENY A 750000 TAX ABATEMENT AND THEIR FLIPFLOP YESTERDAY WHEN THEY VOTED TO OFFER A NEW INCENTIVE PACKAGE OF ROUGHLY EQUAL VALUE HAVE OBSCURED A MORE FUNDAMENTAL ECONOMICDEVELOPMENT QUESTION ARE TEXAS COMMUNITIES GIVING AWAY TOO MUCH IN THEIR QUEST FOR NEW BUSINESS CERTAINLY ECONOMIC BOOSTERS AROUND TEXAS AND AROUND THE US DIDN'T THINK SO IN THE CASE OF APPLE WHICH HAD MADE PLANS TO BUILD A CUSTOMERSERVICE CENTER JUST NORTH OF AUSTIN THAT WOULD EVENTUALLY EMPLOY AS MANY AS 1700 NO SOONER DID WILLIAMSON COUNTY RESCIND ITS OFFER TO FOREGO 750000 IN TAXES OVER SEVEN YEARS THAN DOZENS OF OFFERS FROM OTHER LOCALES BEGAN TO POUR INTO APPLE'S CUPERTINO CALIF HEADQUARTERS FLOODING FAX MACHINES AND EVEN SNARLING THE COMPANY'S INTERNAL COMMUNICATIONS SAN ANTONIO'S ECONOMIC DEVELOPMENT FOUNDATION FOR ONE SENT VIA OVERNIGHT MAIL A PROPOSAL OUTLINING A WIDE RANGE OF INCENTIVES INCLUDING FREE OR INEXPENSIVE LAND FOR A CAMPUS FUNDS FOR WORKER RECRUITMENT AND TRAINING AND 10YEAR TAX ABATEMENTS FROM THE CITY AND COUNTY ON UP TO 100 OF THE VALUE OF IMPROVEMENTS APPLE MIGHT MAKE SAN ANTONIO BANKS OFFERED TO PROVIDE A POOL OF BELOWMARKETRATE HOME MORTGAGES TO RELOCATING APPLE EMPLOYEES ALL TO NO AVAIL APPLE YESTERDAY ACCEPTED WILLIAMSON COUNTY'S REVISED OFFER TAX INCENTIVES ARE NOTHING NEW IN TEXAS STEPHEN F AUSTIN SUSPENDED PROPERTY TAXES TO ATTRACT SETTLERS TO HIS COLONY BUT ABATEMENTS WERE RARE UNTIL OIL PRICES COLLAPSED IN THE 1980S AND COMMUNITIES BEGAN TO AGGRESSIVELY OFFER THEM TO ATTRACT NEW BUSINESSES OR ENCOURAGE EXISTING EMPLOYERS TO EXPAND BY 1992 675 BILLION IN PROPERTY HAD BEEN EXEMPTED FROM SCHOOL DISTRICT TAX ROLLS ALONE UP FROM 603106 IN 1985 PROPONENTS ARGUE THAT SUCH INCENTIVES DON'T COST TAXING AUTHORITIES ANYTHING THAT'S BECAUSE ABATEMENTS TYPICALLY COVER ONLY THE VALUE OF IMPROVEMENTS TO A PROPERTYIMPROVEMENTS THAT THEORETICALLY WOULDN'T HAVE BEEN MADE WITHOUT AN INCENTIVE AND EVEN THOSE WHO ARE SQUEAMISH ABOUT GRANTING THEM SAY THERE'S LITTLE CHOICE IN THIS DAY AND AGE OF PENNYPINCHING CORPORATIONS NO ONE LIKES TAX ABATEMENTS SAYS DALLAS MAYOR STEVE BARTLETT BUT WE'VE FOUND THAT IN ORDER TO BE COMPETITIVE WITH OTHER AREAS WE HAVE TO AGREE TO GIVE UP SOME OF THE INCREASES IN PROPERTY TAXES THAT WE OTHERWISE WOULDN'T HAVE GOTTEN IRONICALLY STUDIES HAVE SHOWN THAT THE ECONOMIC INCENTIVES THEMSELVES TYPICALLY AREN'T THE DECIDING FACTOR IN A COMPANY RELOCATION MUCH MORE IMPORTANT ISSUES SUCH AS THE AVAILABILITY OF SKILLED WORKERS AND QUALITY OF LIFE WHAT'S MORE CRITICS SAY THERE ARE HIDDEN COSTS TO TAX ABATEMENTS IT'S REALLY A FORM OF TAX SHIFTING SAYS DR WEINSTEIN WHO NOTES THAT EXISTING TAXPAYERS END UP BEARING AN ADDED BURDEN FOR POLICE AND FIRE SERVICE ROAD MAINTENANCE AND SO ON TAX ABATEMENT IN MY EXPERIENCE CREATES A LOT OF RESENTMENT IN THE COMMUNITY HE SAYS RECOGNIZING SUCH PITFALLS SOME TEXAS COMMUNITIES HAVE TIGHTENED THEIR ABATEMENT POLICIES AUSTIN FOR INSTANCE HASN'T GRANTED ANY ABATEMENTS SINCE 1991 AND EL PASO NOW REQUIRES ANY ABATEMENT CANDIDATES TO GUARANTEE THE CREATION OF NEW JOBS THAT PAY BETTER THAN THE MINIMUM WAGE AMONG OTHER THINGS I THINK WE'VE BEEN VERY WISE IN NOT GIVING AWAY THE WHOLE FARM SAYS ROBERTO FRANCO EL PASO'S DIRECTOR OF ECONOMIC DEVELOPMENT THEY'RE COMING TEXANS BETTER START BRUSHING UP ON THEIR SPANISH KORN/FERRY INTERNATIONAL AN EXECUTIVESEARCH FIRM RECENTLY POLLED SOME 350 MEXICAN CLIENT COMPANIES AND FOUND THAT 57 EXPECT TO INCREASE THEIR BUSINESS ACTIVITY IN TEXAS AS A RESULT OF THE NORTH AMERICAN FREE TRADE AGREEMENT A SURPRISING 20 MOSTLY IN THE FOOD AND BEVERAGE ENERGY AND PETROCHEMICAL STEEL AND FINANCIAL BUSINESSES SAID THEY EXPECT TO OPEN AN OFFICE OR FACILITY IN TEXAS OF THIS GROUP 35 PLAN TO EXPAND IN HOUSTON 34 IN DALLAS 28 IN SAN ANTONIO AND 3 IN AUSTIN 9312080085 931208 INTERNATIONAL BRIEF MALAYAN UNITED INDUSTRIES BHD COMPANY BUYS 528 STAKE IN LIPPO GROUP'S TRAVEL UNIT MALAYAN UNITED INDUSTRIES BHD A DIVERSIFIED COMPANY ACQUIRED 528 OF MORNING STAR HOLDINGS LTD FOR HK2299 MILLION US298 MILLION FROM THE INDONESIANCONTROLLED LIPPO GROUP THE PURCHASE IS MUI'S FIRST ACQUISITION SINCE LAST MONTH'S SALE OF ITS BANK AND FINANCE COMPANY AND SIGNALS ITS INTENT ON FURTHER EXPANSION ABROAD MORNING STAR A HOTEL AND TRAVELSERVICES COMPANY IS LISTED ON THE HONG KONG STOCK EXCHANGE MUI BASED IN KUALA LUMPUR MALAYSIA ALSO SAID IT HAS ACQUIRED A 30 STAKE IN KERRY FINANCIAL SERVICES LTD A HONG KONGBASED CONCERN CONTROLLED BY THE FAMILY OF MALAYSIAN TYCOON ROBERT KUOK HOCK NIEN FOR HK60 MILLION 9312080084 931208 LETTERS TO THE EDITOR HOW ABOUT THE MILK OF HUMAN KINDNESS LET'S FACE IT WHENEVER A FEMALE JOURNALIST STARTS A SENTENCE WITH LET'S FACE IT IT'S A SURE THING SHE'S ABOUT TO DELIVER A RIDICULOUS SEXIST SLUR AGAINST MEN I REFER TO KAREN KOMAN'S OTHERWISE INTELLIGENT PIECE WRONG WAY TO A MOTHERFRIENDLY WORKPLACE EDITORIAL PAGE NOV 24 IN WHICH SHE SAYS THIS LET'S FACE IT IF MEN HAD OPERATIVE BREASTS THEY WOULD BLITHELY PUMP MILK ALONGSIDE THE OFFICE WATER COOLERS AND BRAG ABOUT WHO PRODUCED THE MOST MILK HEY THANKS A LOT IN THE FOLLOWING PARAGRAPH SHE WRITES ABOUT A WOMAN WHO MATTEROFFACTLY SET UP HER ELECTRIC PUMP ON THE COUNTER IN THE WOMEN'S LOUNGE WHEN ANY OF US HEADED FOR THE TOILETS SHE WOULD GREET US WITH PERFECT EQUANIMITY AND GO BACK TO HER TASK NO BIG DEAL TO HER OR TO US I SEE NO DIFFERENCE BETWEEN THESE TWO SCENARIOS EXCEPT THAT MS KOMAN FOUND IT NECESSARY TO ATTACK MEN IN THE FICTITIOUS ONE WHY SUCH CHEAP POTSHOTS ARE ALL TOO COMMON AMONG WOMEN WHO DECRY SEXISM EXCEPT WHEN IT APPLIES TO MEN 9312080082 931208 ELDERS SEES REDUCED CRIME FROM LEGALIZING DRUGS WASHINGTON SURGEON GENERAL JOYCELYN ELDERS SAID LEGALIZING DRUGS WOULD PROBABLY REDUCE CRIME IN THE US DR ELDERS WHO WAS KNOWN FOR MAKING CONTROVERSIAL STATEMENTS DURING HER TENURE AS DIRECTOR OF THE ARKANSAS HEALTH DEPARTMENT MADE THE COMMENT AFTER A SPEECH AT THE NATIONAL PRESS CLUB QUESTIONED WHETHER LEGALIZING DRUGS SHOULD BE CONSIDERED AS A WAY TO REDUCE VIOLENCE DR ELDERS REPLIED THAT'S REALLY A VERY TOUGH QUESTION I DO FEEL THAT WE WOULD MARKEDLY REDUCE OUR CRIME RATE IF DRUGS WERE LEGALIZED BUT I DON'T KNOW ALL OF THE RAMIFICATIONS OF THIS I DO FEEL THAT WE NEED TO DO SOME STUDIES SHE ADDED SOME OF THE COUNTRIES THAT HAVE LEGALIZED DRUGS CERTAINLY HAVE SHOWN THAT THERE HAS BEEN A REDUCTION IN THEIR CRIME RATE AND THERE HAS BEEN NO INCREASE IN THEIR DRUG USE RATE THE WHITE HOUSE IMMEDIATELY DISTANCED ITSELF FROM HER REMARKS STRESSING THAT PRESIDENT CLINTON OPPOSES THE LEGALIZATION OF DRUGS AND THE SURGEON GENERAL'S OFFICE ISSUED A STATEMENT A FEW HOURS LATER SAYING THAT THE ADMINISTRATION ISN'T CONSIDERING SUCH MEASURES AND THAT DR ELDERS' REMARKS WERE HER OWN PERSONAL OBSERVATIONS 9312080081 931208 LEISURE & ARTS BOOKSHELF THE GREAT VIRGINIAN FROM OUTSIDE IN BY DAVID SHRIBMAN FACTS AS JOHN ADAMS ONCE SAID ARE STUBBORN THINGS ELUSIVE ALSO SO IN A SEASON IN WHICH THE PUBLISHING WORLD TRIES TO SELL A TED KENNEDY BIOGRAPHY THAT'S MUCH LIKE A NOVEL IT'S ONLY FITTING THAT WE ALSO SHOULD BE PRESENTED WITH A NOVEL THAT IS MUCH LIKE A BIOGRAPHY THUS MAX BYRD'S JEFFERSON A NOVEL BANTAM 424 PAGES 2295 AT LEAST THIS BOOK OFFERS TRUTHINPACKAGING WHICH IS NOT A SMALL THING BUT JUST AS JOE MCGINNESS'S THE LAST BROTHER PRESENTED READERS WITH VEXING PROBLEMS SO DOES MR BYRD'S JEFFERSON DOUBTS LINGER AND MULTIPLY PARAGRAPH BY PARAGRAPH UNTIL WE ARE LEFT WONDERING IS THIS PART TRUE IS THAT MADE UP MAYBE THIS SENTENCE AND NOT THE NEXT OR IS IT THE OTHER WAY AROUND IN ANY CASE BELIEVE IT OR NOT AND BELIEVABLE OR NOT THIS LITTLE NOVEL ABOUT THE THIRD PRESIDENT OF THE US IS A BRISK AND PLEASANT READ THERE'S CONSTITUTIONAL HISTORY SOME MUSINGS ABOUT THE NEED FOR A BILL OF RIGHTS THERE'S STATECRAFT IN MOST OF THIS BOOK JEFFERSON IS ENGAGED TRYING TO ESTABLISH THE YOUNG US AS A LEGITIMATE PLAYER ON THE DIPLOMATIC SCENE THERE ARE MORAL QUESTIONS SLAVERY THE FRENCH REVOLUTION THE MEANING OF LOVE EVEN SCANDAL A FIXATION WITH BORDELLOS AND SOME TANTALIZING SUGGESTIONS THAT JEFFERSON HAD A LIAISON WITH A MARRIED WOMAN WHILE ABROAD BUT THE SURPRISING THING IS HOW MUCH SENSE A NOVELIST CAN MAKE AND HOW MANY THINGS A NOVELIST CAN SAY THAT A HISTORIAN CAN'T CONVENTIONAL BIOGRAPHERS SHY AWAY FOR EXAMPLE FROM TALKING OF THE SWIFT PINEAPPLISH TOP OF LAFAYETTE'S HEAD BREATHES THERE AN ACADEMIC WHO WOULD NOTE THAT JEFFERSON STROKES THE BINDINGS OF HIS BOOKS THE WAY ANOTHER MAN WOULD STROKE A WOMAN AND WHEN WAS THE LAST TIME A UNIVERSITY PRESS CAME FORTH WITH A BIOGRAPHY THAT MIGHT DESCRIBE THE YOUNG THOMAS JEFFERSON AS ALL COLLAPSIBLE ELBOWS AND KNEES AND SAY OF LAFAYETTE THAT THERE WAS SOMETHING ABOUT HIM THAT JUST MISSED BEING TRULY IMPRESSIVE THAT TURNED AT THE LAST MOMENT DESPERATE OR COMICAL JEFFERSON SHARES THE STAGE HERE WITH A MAN NAMED WILLIAM SHORT AN ASTERISK IN HISTORY WHOM MR BYRD RESCUES FROM OBSCURITY AND INSTALLS AS THE NARRATOR IN LIFE HE WAS JEFFERSON'S PERSONAL SECRETARY AND PROTEGE WHILE THE VIRGINIAN WAS AMBASSADOR TO THE COURT OF LOUIS XVI IN THE NOVEL HE IS AN ENGAGING PRESENCE GIVEN TO INSIGHT AND INTROSPECTION THIS BEING A NOVEL EVEN ONE THAT WAS METICULOUSLY RESEARCHED IN ALL THE RESPECTABLE PLACES THERE'S NO WAY TO TELL WHERE THE DIALOGUE CAME FROM BUT REAL OR IMAGINED IT IS GRIPPING TO WATCH JEFFERSON REASON HIS WAY THROUGH PARIS SOCIETY PARRYING CHARGES THAT AMERICA THAT YOUNGSTER ON THE WORLD STAGE HADN'T YET PRODUCED A GOOD POET JEFFERSON'S ANSWER IS REASONABLE ENOUGH THOUGH LACED WITH IRONY GIVE US TIME OR AT LEAST AS LONG AS THE GREEKS HAD BEFORE THEY PRODUCED A HOMER OR THE ROMANS A VERGIL OR THE FRENCH A RACINE OF COURSE OUR GIANTS CAME IN OUR YOUTH WASHINGTON FRANKLIN JEFFERSON MADISON AND REGRETTABLY ARE SCARCE IN OUR MATURITY ALONG THE WAY MR BYRD CONVEYS A NUMBER OF JEFFERSONIAN TIDBITS LIKE THE FACT THAT THE MASTER OF MONTICELLO WAS OFTEN STRICKEN WITH HEADACHES THAT RENDERED HIM UNABLE TO WORK FOR WEEKS JEFFERSON WAS A COMPULSIVE REDECORATOR OF ROOMS AND HOUSES HE STUDIED FOR 15 HOURS AT A TIME AT THE COLLEGE OF WILLIAM AND MARY HE WROTE DOWN THE TEMPERATURE EVERY MORNING HE COULDN'T ABIDE HIS OWN MOTHER THE FAMILY CEMETERY WAS ONE OF THE FIRST THINGS HE DESIGNED AT MONTICELLO HE LIKED TO COLLECT RECIPES HE WAS IN SHORT ONE OF THE MOST COMPELLING FIGURES OF HIS TIME OR OF ANY OTHER MR BYRD RAISES THE QUESTION OF WHETHER JEFFERSON REPEATEDLY TRIED TO SEDUCE HIS BEST FRIEND'S WIFE ONCE EVEN SNEAKING INTO THE ROOM WHERE THE WOMAN WAS UNDRESSING OR MAYBE HE DIDN'T MR BYRD DOESN'T KNOW FOR SURE NEITHER DO WE BUT HE DOES LINGER ON ONE MARIA COSWAY AS JEFFERSON HIMSELF MAY HAVE MRS COSWAY HERSELF A PAINTER WAS THE WIFE OF A RENOWNED ENGLISH MINIATURIST SHE WAS FLIRTATIOUS AND INDEPENDENT PERHAPS TOO MUCH SO FOR JEFFERSON PATSY JEFFERSON TJ'S DAUGHTER ABSOLUTELY HATED HER BUT JEFFERSON WAS DRAWN TO HER MAYBE IN LIFE SURELY IN THE NOVEL YOU WOULD HAVE NEEDED A HEART BLINDER THAN STONE MR BYRD WRITES NOT TO KNOW WHAT LAY IN THE AIR BETWEEN THEM MRS COSWAY ENDED UP A WIDOW AND FINALLY A NUN AND YET FOR ALL THE FASCINATING LITTLE FACTOIDS AND THE INTRIGUING LITTLE EXCHANGES THERE IS ONE PHRASE SIX WORDS ONLY BUT SIX POTENT WORDS THAT ARE INDISPUTABLY TRUE THIS EPIPHANY APPEARS AT THE TOP OF PAGE 315 TUCKED INNOCENTLY INSIDE A CLAUSE BUT FOR ME AT LEAST ITS TRUTH SHOT OUT ACROSS THE PAGE IT IS THIS SIMPLE THOUGHT NOBODY HAS BEEN INSIDE THAT HEAD NOT EVEN NOW 9312080080 931208 AMERITECH SEEKS TO PROVIDE LONGDISTANCE SERVICES CHICAGO AMERITECH CORP AS EXPECTED PROPOSED A TRIAL PROGRAM IN ITS REGION TO PROVIDE LONGDISTANCE TELEPHONE SERVICE BEGINNING IN 1995 WHICH WOULD MAKE IT THE FIRST BABY BELL TO ENTER THE 60 BILLION MARKET AMERITECH ASKED THE JUSTICE DEPARTMENT TO APPROVE A WAIVER TO THE CONSENT DECREE THAT BROKE UP THE OLD AMERICAN TELEPHONE & TELEGRAPH CO IN 1984 AS PART OF ITS PROPOSAL THE BABY BELL OFFERED TO OPEN ITS LOCAL TELEPHONE MARKET TO COMPETITORS THE PROPOSED TRIAL WOULD BEGIN IN ILLINOIS AND THE FOUR OTHER STATES THAT AMERITECH SERVES WOULD BE PHASED IN THE PLAN IS OPPOSED VIGOROUSLY BY LONGDISTANCE COMPANIES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO THE LONGDISTANCE PROVIDERS ARGUE THE BABY BELLS SHOULDN'T BE ALLOWED INTO THEIR MARKET WHILE CONTINUING TO WIELD MONOPOLY POWER OVER THEIR OWN TERRITORIES THE PROPOSAL WHICH REQUIRES THE APPROVAL OF THE US DISTRICT COURT IN WASHINGTON IS FAVORED BY JUSTICE STAFF IN ADDITION IT HAS RECEIVED AN EARLY FAVORABLE REVIEW FROM JOHN DINGELL DMICH CHAIRMAN OF THE POWERFUL HOUSE ENERGY AND COMMERCE COMMITTEE HE RECENTLY PROPOSED A BILL THAT WOULD EASE FEDERAL RULES BARRING THE BELLS FROM THE LONGDISTANCE BUSINESS 9312080079 931208 GIFTED KIDS THE HIDDEN DISADVANTAGED BY MEREDITH BURKE I LIKE SURE BETS ONE IS THAT A RECENT EDUCATION DEPARTMENT REPORT DETAILING THE NATION'S NEGLECT OF GIFTED CHILDREN AND RECOMMENDING A MORE CHALLENGING CURRICULUM WILL BE IGNORED NO MAKE THAT REJECTED FOR AT LEAST HALF A CENTURY WE AS A NATION HAVE CONTINUALLY REJECTED RESEARCH FINDINGS ABOUT THE GIFTED BECAUSE REALITY REFUSES TO BE POLITICALLY CORRECT AMERICANS PERSIST IN APPLYING THE POLITICAL CONCEPT ALL MEN ARE CREATED EQUAL TO THE INTELLECTUAL REALM WITH PAINFUL AND COSTLY RESULTS EVEN MORE PERVERSELY WE LOOSEN THIS STRAITJACKET FOR THOSE WHO FALL BELOW THE MEAN WHILE TIGHTENING IT FOR THOSE WHO LAND ABOVE FOR FIVE DECADES EDUCATORS HAVE DISCOUNTED THE FINDINGS OF THE DEFINITIVE CONTINUING STUDY OF GIFTED CHILDREN BEGUN IN THE 1920S THEY HAVE ACTUALLY ABANDONED GRADE ACCELERATION A PRACTICE STRONGLY ENDORSED BY STUDY DIRECTOR LEWIS TERMAN THEY ASSAIL ABILITY GROUPING WHILE ENCOURAGING THE PROLIFERATION OF SPECIAL PROGRAMS FOR THE LEARNING DISABLED FOR THOSE OF LIMITED ENGLISH PROFICIENCY AND FOR THOSE OTHERWISE HANDICAPPED ANOTHER SURE BET IS THAT THESE VERY EDUCATORS ARE UNACQUAINTED WITH THE FINDINGS OF LETA HOLLINGSWORTH IN THE LATE '30S AND EARLY '40S ABOUT HIGHLY GIFTED CHILDREN A TRAILBLAZER PSYCHOLOGIST MS HOLLINGSWORTH PAINSTAKINGLY STUDIED AND FOLLOWED THE DEVELOPMENT OF A NUMBER OF CHILDREN WITH IQS ABOVE 180 LIKE MANY SUBSEQUENT RESEARCHERS SHE OBSERVED THAT IN TERMS OF VOCABULARY LEVEL OF ANALYTIC THOUGHT AND ATTENTION SPAN THESE CHILDREN LIVED ON A DIFFERENT PLANET FROM THEIR AVERAGE AGEMATES TO THOSE WHO ARGUED AGAINST ABILITY GROUPING SHE NOTED THAT CHILDREN LIKE ADULTS CHOOSE AS FRIENDS AND LEADERS CHILDREN WHO ARE BRIGHTER BUT NOT TOO MUCH BRIGHTER THAN THEY SHE CONCLUDED THAT SOCIALIZING THE VERY GIFTED WOULD NOT BE ACHIEVED BY MIXING THEM WITH CHILDREN TOO FAR BELOW THEIR INTELLECTUAL LEVEL YET MOST PROGRAMS FOR GIFTED STUDENTS MAINLY BEGUN THREE DECADES AFTER MS HOLLINGSWORTH DOCUMENTED THEIR NEED HAVE BEEN INADEQUATE ALTHOUGH NOW OFFERED BY ABOUT TWOTHIRDS OF PUBLIC SCHOOLS THEY ARE GENERALLY NOMINAL TWO TO THREE HOURS A WEEK AND UNRELATED TO THE SCHOLASTIC DEMANDS OF CHILDREN WHO HAVE MASTERED AT LEAST HALF THE CURRICULUM BEFORE THE START OF A SCHOOL YEAR THE CASE AT THE ELEMENTARY LEVEL MOREOVER THESE PROGRAMS HAVE BEEN A PRIME TARGET OF BUDGETCUTTERS I HAVE BECOME CONVINCED THAT THE BEST WAY TO SAFEGUARD AND EXPAND THESE PROGRAMS IS FOR ADVOCATES FOR THE GIFTED TO USE THE SAME LEGAL TOOLS THOSE FOR THE DISABLED HAVE IF A SCHOOL CLAIMS IT SEEKS TO PROVIDE APPROPRIATE EDUCATION TO ALL COMERS AS REQUIRED BY LAW IN MANY STATES I PROPOSE THAT PARENTS INDIVIDUALLY OR COLLECTIVELY FILE SUIT TO OBTAIN SUCH AN EDUCATION FOR THEIR GIFTED CHILDREN BOTH THE WASHINGTONBASED NATIONAL ASSOCIATION FOR GIFTED CHILDREN AND ITS MANY STATE BRANCHES AND THE NATIONAL GIFTED CHILDREN'S COORDINATOR OF MENSA CAN PROVIDE COPIOUS EVIDENCE ABOUT THE HARM CAUSED BY NEGLECTING THESE CHILDREN'S SPECIAL NEEDS FOR EXAMPLE THE PSYCHIC COSTS OF CLASSROOM STULTIFICATION WERE EVIDENT IN THE YOUNG PARTICIPANTS IN AN INNOVATIVE CUPERTINO CALIF PROGRAM FOR FIRST THROUGH THIRDGRADERS WHOSE CLASSROOM PERFORMANCE HAD BEEN FAR BELOW THEIR TESTED POTENTIAL IN HER 1980 BOOK GIFTEDNESS CONFLICT AND UNDERACHIEVEMENT JOANNE RAND WHITMORE FOUND THAT PARTICIPANTS UNIFORMLY DESCRIBED THEIR PREVIOUS TEACHERS CURRICULA AND CLASSMATES AS STUPID BORING AND INTOLERANT OF ALTERNATIVE WAYS OF VIEWING THE WORLD OR PERFORMING A TASK THESE VERY YOUNG STUDENTS SUMMONED THE ONLY DEFENSE AT THEIR DISPOSAL THEY TUNED OUT AND PSYCHOLOGICALLY WITHDREW FROM THE CLASSROOM DESPITE THE CUPERTINO PROGRAM'S RECORD OF SUCCESS IN REENGAGING THESE STUDENTS THE DISTRICT DISBANDED IT THREE YEARS AGO WE NEED TO DEMOLISH THE CLAIM THAT MIXEDABILITY CLASSROOMS CAN MEET THE NEEDS OF THE VERY GIFTED WHEN WE CONSIDER THAT THE ABILITY RANGE AMONG THE GIFTED IS AS VAST AS THAT AMONG THE RETARDED WE CAN BETTER APPRECIATE THE UNSUITABILITY OF THE MIXEDABILITY CLASSROOM FOR NURTURING CHILDREN AT EITHER EXTREME THE EDUCATION DEPARTMENT WARNS US THAT THE FUTURE OF OUR COUNTRY IS AT STAKE AS WE NEGLECT OUR GIFTED AND NEGATIVELY STEREOTYPE AND RIDICULE HIGHACHIEVERS IRONICALLY EVEN AS SEVERAL SOUTHERN STATES HAVE ESTABLISHED SPECIAL RESIDENTIAL HIGH SCHOOLS FOR GIFTED SCIENCE STUDENTS HIGHTECH CALIFORNIA HAS BEEN FORCED TO REDUCE ITS ALREADY LIMITED STATE PROGRAM FOR ITS MOST PROMISING YOUTH WE CANNOT AFFORD TO ALLOW LOCAL ACTIONS TO STULTIFY THE DEVELOPMENT OF WHAT IS PROPERLY VIEWED AS A NATIONAL RESOURCE THOSE WHO WOULD HOOT AT THE IDEA OF ONESIZEFITSALL CLOTHING ARE ALSO THE ONES WHO UNCRITICALLY OR CRAVENLY ACCEPT THE IDEA OF ONESIZE SCHOOLING UNDER ONESIZE CLOTHING THE RICH WOULD HIRE THEIR OWN TAILORS UNDER OUR PREVAILING ONESIZE PUBLIC SCHOOLING THE AFFLUENT OPT THEIR CHILDREN OUT THE TRUE VICTIMS ARE THE BRIGHT CHILDREN OF THE ECONOMICALLY AND SOCIALLY DISADVANTAGED IT IS THEIR LOT TO SUFFER FROM A MISPLACED EGALITARIANISM THAT CONFUSES SAMENESS OF OFFERINGS WITH EQUALITY OF OPPORTUNITY MS BURKE IS A SOCIAL POLICY ANALYST WRITER AND ADJUNCT FACULTY MEMBER AT SAN JOSE STATE UNIVERSITY 9312080078 931208 CORPORATE FOCUS HEINZ'S 25 JUMP IN 2NDPERIOD PROFIT MASKS WEAKNESS BEHIND ONETIME GAINS CURRENCY PROBLEMS AND HIGHER TAXES TAKE TOLL BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL IN RECENT YEARS HJ HEINZ CO HAS BEEN SPICING UP ITS EARNINGS WITH SPECIAL ITEMS THE LATEST QUARTER WAS NO EXCEPTION YESTERDAY HEINZ POSTED NET INCOME OF 1931 MILLION OR 75 CENTS A SHARE INCLUDING A 24CENT GAIN ON THE SALE OF ASSETS FOR THE FISCAL SECOND QUARTER ENDED OCT 27 THAT'S 25 HIGHER THAN THE 1542 MILLION OR 60 CENTS A SHARE EARNED A YEAR EARLIER BUT STRIP AWAY THE ONETIME GAINS AND THE PITTSBURGH FOOD COMPANY'S QUARTERLY EARNINGS WERE 51 CENTS A SHARE OR ABOUT 16 BELOW LAST YEAR'S THEIR BUSINESS IS LACKLUSTER SAID NOMI GHEZ AN ANALYST WITH GOLDMAN SACHS & CO BUT THEIR MAIN PROBLEM IS THAT TWO YEARS AGO THEY HAD A SLUMP IN THEIR BUSINESS AND INSTEAD OF ADMITTING IT THEY STARTED INCLUDING NONRECURRING ITEMS IN THE RESULTS THEY WERE SHOWING THAT CREATED AN ARTIFICIALLY HIGH BASE OF EARNINGS THAT THEY CAN NO LONGER MATCH HEINZ SHARES CLOSED YESTERDAY AT 37 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE STOCK HASN'T PARTICIPATED IN THE OVERALL MARKET RALLY AND MANY ANALYSTS HAD BEEN LOWERING ESTIMATES IN RECENT WEEKS WITH THE CONSENSUS FOR HEINZ TO EARN IN THE RANGE OF 50 CENTS TO 55 CENTS A SHARE EXCLUDING THE GAINS HEINZ SAID ITS CORE PRODUCTS WHICH INCLUDE KETCHUP 9LIVES CAT FOOD STARKIST TUNA AND OREIDA FROZEN POTATOES ARE SHOWING SOLID GROWTH THOUGH IT CONCEDES WEIGHT WATCHERS DIET CLASSES AND FROZEN FOODS ARE STRUGGLING WE'RE NOT LOOKING FROM QUARTER TO QUARTER WE'RE LOOKING AT THE NEXT THREE TO FIVE YEARS MANAGING FOR GROWTH A SPOKESMAN SAID TO BE SURE ANY WEAKNESS IN HEINZ'S PROFIT IS LINKED TO THE SLUMP IN THE OVERALL FOOD INDUSTRY WHICH FACES SEVERE PRICING PRESSURES AND SLOW GROWTH IN THE US BUT HEINZ WHICH GETS MORE THAN 40 OF ITS EARNINGS FROM BUSINESSES ABROAD HAS PROVEN PARTICULARLY VULNERABLE TO FOREIGN CURRENCY FLUCTUATIONS ESPECIALLY FROM THE UK AND ITALY AS THE POUND AND LIRA HAVE FALLEN SHARPLY AGAINST THE DOLLAR ANALYSTS WERE SURPRISED BY HOW HARD FOREIGN CURRENCIES HIT HEINZ IN THE QUARTER CURRENCY PROBLEMS REDUCED TOTAL SALES BY 7 AND EARNINGS BY EIGHT CENTS A SHARE AND COULD SLASH 15 CENTS OFF ANNUAL PERSHARE EARNINGS HEINZ SAID A HIGHER CORPORATE TAX RATE ALSO HURT PROFITABILITY THE QUARTERLY TAX RATE WAS 37 COMPARED WITH 31 IN THE YEAREARLIER PERIOD HEINZ ANTICIPATES A RATE OF 36 OR 37 FOR THE REST OF THE FISCAL YEARTHOUGH IT HOPES TO BRING IT DOWN TO 35 COMPARED WITH LAST YEAR'S UNUSUALLY LOW RATE OF 26 MEANWHILE SALES WERE 181 BILLION UP 4 FROM 174 BILLION A YEAR EARLIER HEINZ REPORTED UNIT SALES INCREASES IN OREIDA STARKIST PET FOOD AND KETCHUP IT ALSO BOOSTED KETCHUP POTATO AND TUNA PRICES DURING THE PERIOD BUT AT WEIGHT WATCHERS ATTENDANCE AT ITS DIET CLASSES WAS DOWN 10 IN THE QUARTER ACCORDING TO THE COMPANY BECAUSE OF THE WEAK ECONOMY AND THE SEASONALITY OF THE DIET INDUSTRY WHICH TENDS TO PERK UP AFTER THE HOLIDAYS UNIT SALES OF WEIGHT WATCHERS FROZEN FOODS DECREASED IN THE DOUBLE DIGITS ACCORDING TO HEINZ WHICH POINTED OUT THAT IT RECENTLY RAISED PRICES THE BRAND REMAINS MIRED IN A PROTRACTED BATTLE WITH SUCH LOWFAT FROZENFOOD RIVALS AS LEAN CUISINE AND HEALTHY CHOICE IN LIGHT OF SUCH WEAKNESSES HEINZ HAS BEEN IN A COSTCUTTING MODE FOR THREE YEARS IT CUT EMPLOYMENT 10 IN SEPTEMBER 1991 AND ANOTHER 10 EARLIER THIS YEAR THE COMPANY IS PURSUING AN AGGRESSIVE WORLDWIDE ACQUISITION STRATEGY AND HAS RECEIVED HIGH MARKS ON WALL STREET FOR ITS ACQUISITION LAST YEAR OF NEW ZEALAND'S WATTIE'S LTD A LARGE FOOD CONCERN LONGER TERM THEY'RE ONE OF THE BETTER SITUATED COMPANIES INTERNATIONALLY AND THEY'VE DONE A LOT TO BRING THEIR COSTS IN LINE SAID DEAN WITTER REYNOLDS INC'S LAWRENCE ADELMAN A LONGTERM QUESTION IS WHO WILL SUCCEED CHAIRMAN ANTHONY JF O'REILLY THE COMPANY SAID MR O'REILLY WILL REMAIN AT THE HELM AT LEAST UNTIL HE TURNS 60 IN 1996 AND ADDED THAT THE QUESTION OF A SUCCESSOR DOESN'T ARISE AT THIS TIME THERE'S NO HORSE RACE AT ONE TIME DAVID W SCULLEY A DIRECTOR AND SENIOR VICE PRESIDENT IN CHARGE OF WEIGHT WATCHERS AND OREIDA AMONG OTHER BUSINESSES WAS CONSIDERED THE CLEAR FRONTRUNNER HOWEVER MR SCULLEY A BROTHER OF FORMER APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY HASN'T YET MANAGED TO TURN WEIGHT WATCHERS AROUND MEANWHILE MR O'REILLY HAS PROMOTED A FEW OTHER EXECUTIVES WHO ARE NOW CONSIDERED CONTENDERS FOR THE TOP JOB ACCORDING TO PEOPLE CLOSE TO THE COMPANY THEY INCLUDE WILLIAM C SPRINGER PRESIDENT OF HEINZ NORTH AMERICA AND WILLIAM R JOHNSON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE STARKIST FOODS UNIT BOTH OF WHOM WERE NAMED SENIOR VICE PRESIDENTS AND DIRECTORS IN SEPTEMBER ANOTHER CANDIDATE LUIGI RIBOLLA A SENIOR VICE PRESIDENT IN CHARGE OF EUROPEAN OPERATIONS AND A MEMBER OF THE BOARD IN THE LATEST PERIOD'S RESULTS AN INCREASE IN MARKETING SPENDING HIGHER THAN ANALYSTS HAD EXPECTED TOOK A BIG BITE OUT OF EARNINGS THE COMPANY BOOSTED SPENDING ON ADVERTISING AND PROMOTIONS 13 IN THE QUARTER NEARLY DOUBLE THE MARKETING EXPENDITURE INCREASE IN THE FIRST QUARTER MR ADELMAN SAID THAT THEY SPENT A LOT MORE TO DRIVE THE VOLUMES UP OVERALL VOLUMES WERE UP 3 FOR THE QUARTER BUT MARKETING EXPENDITURES WERE UP 13 ANALYSTS EXPECT LITTLE GROWTH IN EARNINGS EXCLUDING GAINS IN THE FISCAL YEAR WHICH ENDS IN APRIL 1994 LAST SPRING HEINZ TOLD ANALYSTS TO EXPECT EARNINGS OF ABOUT 270 A SHARE FOR THE YEAR BUT THE COMPANY SUBSEQUENTLY AGREED TO SELL ITS NEAR EAST SPECIALTY RICE UNIT CHICO SAN RICE CAKES AND ITS ITALIAN CONFECTIONARY BUSINESS THE COMPANY NOW SAYS THAT WHILE IT STILL EXPECTS TO ACHIEVE EARNINGS IN THE 270 RANGE THAT RESULT WILL INCLUDE THE GAIN FROM ASSET SALES SOME ANALYSTS HAD ASSUMED 270 WOULD BE AN OPERATING NUMBER WHICH IT NOW WON'T BE SAID WILLIAM LEACH AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP ONE OF MORE THAN A DOZEN ANALYSTS WHO HAVE RECENTLY CUT EARNINGS ESTIMATES FOR THE YEAR ACCORDING TO THOMSON FINANCIAL'S FIRST CALL THE COMPARISON WITH LAST YEAR IS DIFFICULT HEINZ REPORTED NET INCOME OF 153 A SHARE BUT THAT REFLECTED RESTRUCTURING CHARGES OF 45 CENTS A SHARE AND ACCOUNTINGRELATED CHARGES OF 51 CENTS MOST ANALYSTS USE 249 AS LAST YEAR'S EARNINGS THAT FIGURE EXCLUDES THE CHARGES PATRICIA DAVIS CONTRIBUTED TO THIS ARTICLE 9312080077 931208 COMMODITIES SILVER FUTURES LEAD A RALLY IN PRECIOUS METALS AS MIDDLE EASTERN INVESTORS SNAP UP CONTRACTS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL SILVER FUTURES PRICES LED A RALLY IN PRECIOUSMETALS MARKETS AS MIDDLE EASTERN AND OTHER INVESTORS BOUGHT SILVER FUTURES CONTRACTS IN ABUNDANCE AT NEW YORK'S COMMODITY EXCHANGE THE PRICE OF SILVER FOR MARCH DELIVERY CLIMBED 88 CENTS AN OUNCE TO 4945 WHILE THE ACTIVELY TRADED FEBRUARY GOLD FUTURES CONTRACT WAS UP 150 TO 37930 AN OUNCE THE RATIO OF THE PRICE OF SILVER TO GOLD'S PRICE FELL TO 77 TO 1 ONLY TWO MONTHS AGO THIS RATIO WAS HOVERING AT 88 TO 1 THE MAIN REASON FOR THE SHOW OF STRENGTH BY SILVER FUTURES PRICES HAS BEEN HEAVY BUYING BY MIDDLE EASTERN INVESTOR SYNDICATES ANALYSTS SAID GOLD HAS REALLY NOT ATTRACTED THAT TYPE OF DEMAND BUT IT CONTINUES TO BENEFIT FROM THE STRENGTH IN SILVER SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH A WEEK AGO THE ROUT IN WORLD OIL PRICES WAS EXERTING DOWNWARD PRESSURE ON PRECIOUS METALS PRICES AS WELL BUT THE METALS MARKET APPEARS TO HAVE SHRUGGED OFF THAT NEGATIVE IMPULSE NOW TRADERS APPEAR TO BE FOCUSING ON THE EXPANSION OF THE US ECONOMY AND EXPECTATIONS THAT A SIMILAR RECOVERY WILL FOLLOW IN EUROPE IF EUROPE'S ECONOMY DOES FOLLOW THE LEAD OF THE US MANY ANALYSTS SEE GOLD PRICES RISING HIGHER THAN 400 AN OUNCE NEXT YEAR I THINK THIS IS ALL A BUILDUP SAID IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING FOR CREDITSUISSE SINCE THE BEGINNING OF AUGUST IF YOU LOOK AT THE CHARTS WE'VE BEEN BUILDING IN BOTH GOLD AND SILVER YESTERDAY SILVER FUTURES PRICES BROKE THROUGH RESISTANCE POINTS OR THE LEVELS AT WHICH INVESTORS HAD PLACED ORDERS TO BUY FUTURES CONTRACTS AT THESE LEVELS COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY AND OTHER SMALLER INVESTORS BECAME BUYERS MORE THAN IN OTHER COMMODITY MARKETS INVESTOR DEMAND OF THIS KIND TENDS TO DRIVE RALLIES IN PRECIOUSMETALS MARKETS PRECIOUS METALS ARE SENSITIVE TO INFLATION AND THE SURGE IN INVESTMENT IN PRECIOUS METALS IS AN INDICATION THAT MANY INVESTORS ARE BETTING ON AN UPTICK IN INFLATION IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS GRAIN FUTURES PRICES CONTINUED TO SURGE BECAUSE OF STRONG DEMAND FROM GRAIN EXPORTERS AND OTHERS AT THE CHICAGO BOARD OF TRADE CORN FOR MARCH DELIVERY WAS UP 325 CENTS TO 29475 A BUSHEL WHILE THE ACTIVELY TRADED JANUARY SOYBEAN FUTURES CONTRACT ROSE 425 CENTS TO 684 A BUSHEL AFTER TRADING ON MONDAY THE US AGRICULTURE DEPARTMENT RELEASED A REPORT SHOWING LARGERTHANEXPECTED EXPORT INSPECTIONS FOR CORN SOYBEANS AND WHEAT THAT SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO IS AN INDICATION THAT DEMAND FOR THESE GRAINS IS STRONG MEANWHILE US GRAINPROCESSING COMPANIES CONTINUE TO BUY IN AN EFFORT TO LOCK IN SUPPLIES OF GOODQUALITY GRAIN WHICH IS SCARCE BECAUSE OF LAST SUMMER'S RELATIVELY LOW CROP PRODUCTION ENERGY AFTER TRADING IN A VERY BROAD 52CENT RANGE JANUARY CRUDE OIL FUTURES GAINED 13 CENTS FOR THE DAY TO SETTLE AT 1470 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE CRUDE PRICES WERE BUFFETED BY A COUPLE OF PENDING DEVELOPMENTS INCLUDING WORD OF A MEETING OF ARAB OIL PRODUCERS SET TO BEGIN TODAY SOME TRADERS APPARENTLY BELIEVE THAT MEMBERS OF THAT GROUP SOME OF WHOM ALSO ARE MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES MIGHT TAKE ACTION TO SHORE UP SLIDING OIL PRICES SIMILARLY THE CLINTON ADMINISTRATION IS EXPECTED TO PRESENT A PLAN TOMORROW TO AID DOMESTIC ENERGY PRODUCTION JANUARY CRUDE CONTRACTS TRADED AS LOW AS 1451 A BARREL AND AS HIGH AS 1503 9312080075 931208 COX SOUTHWESTERN BELL AGREE TO FORM A 49 BILLION CABLETV PARTNERSHIP BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COX ENTERPRISES INC AND SOUTHWESTERN BELL CORP SAID THEY AGREED TO FORM A CABLE PARTNERSHIP WITH 49 BILLION IN ASSETS THAT WILL EXPLOIT CABLETELEVISION TELEPHONE AND INTERACTIVEMEDIA OPPORTUNITIES IN EACH OTHER'S MARKETS THE TWO COMPANIES WILL CREATE A THIRD CLOSELY HELD COMPANY BASED IN ATLANTA THAT WILL INITIALLY RETAIN THE NAME OF COX'S CABLE SUBSIDIARY COX CABLE COMMUNICATIONS EXECUTIVES FROM COX AND SOUTHWESTERN ARE CALLING THE NEW COMPANY A GROWTH VEHICLE AND SAID IT WOULD MOVE QUICKLY TO EXPAND ITS SUBSCRIBER BASE TO AT LEAST FOUR MILLION CUSTOMERS FROM 16 MILLION BY BUYING CABLE OPERATORS OR SWAPPING INTERESTS IN THEIR VENTURE FOR CABLE SYSTEMS IF THE COMPANY DOES REACH THAT LEVEL COX CABLE WOULD BECOME THE NATION'S THIRDLARGEST CABLE SYSTEM OPERATOR BEHIND TIME WARNER INC AND TELECOMMUNICATIONS INC WHICH RECENTLY AGREED TO BE ACQUIRED BY BELL ATLANTIC CORP WE RECOGNIZED YOU HAVE TO HAVE A CERTAIN AMOUNT OF VOLUME TO PLAY IN THIS BUSINESS ANYMORE SAID JAMES O ROBBINS PRESIDENT OF COX CABLE BEFORE THE BELL ATLANTIC DEAL WE THOUGHT IF YOU COULD GET TO THREE MILLION CABLE SUBSCRIBERS YOU COULD BE A PLAYER COX CABLE IS THE NATION'S SIXTHLARGEST CABLE OPERATOR THE MOVE REFLECTS THE GROWING BELIEF AMONG TELEPHONE AND CABLE COMPANIES THAT THEY ARE IN MATURING BUSINESSES WITH LITTLE OPPORTUNITY FOR GROWTH ONE SOLUTION IS TO REINVENT THEMSELVES AS MULTIMEDIA CONCERNS AND OFFER EXPANDED SERVICES ALLIANCES BETWEEN THE TWO INDUSTRIES ARE BEING DRIVEN BY A CONVERGENCE OF TECHNOLOGY WHICH MEANS BOTH CABLETV WIRES AND PHONE LINES ULTIMATELY WILL BE ABLE TO DELIVER THE SAME INFORMATION TO THEIR CUSTOMERS BY JOINING FORCES CABLE AND PHONE COMPANIES CAN EXPAND THEIR COVERAGE AREAS AND EXCHANGE MANAGEMENT EXPERTISE IN ADDITION TO THE BELL ATLANTICTCI TRANSACTION BELLSOUTH CORP HAS AGREED TO INVEST IN PRIME CABLE IN THE LATEST JOINT VENTURE COX A FAMILYOWNED MEDIA CONGLOMERATE IS CONTRIBUTING 21 CABLE SYSTEMS VALUED AT 33 BILLION SOUTHWESTERN IS SUPPLYING 16 BILLION IN CASH OR CABLE SYSTEMS IT HASN'T ANNOUNCED WHICH OF ITS CABLE SYSTEMS WILL BE PART OF THE VENTURE THE TWO COMPANIES VALUED COX'S CABLE SYSTEMS AT 11 TIMES ITS APPROXIMATE ANNUAL CASH FLOW OF 300 MILLION THE COX CONTRIBUTION IS EFFECTIVELY LOWERED TO 23 BILLION SINCE THE PARTNERSHIP HAS AGREED TO GIVE COX A 1 BILLION PREFERRED PARTNERSHIP INTEREST IN THE COMPANY WHICH WILL CARRY A FIXED COUPON RATE IF THIS WERE A CORPORATION INSTEAD OF A PARTNERSHIP IT WOULD BE EQUIVALENT TO PREFERRED STOCK SAID JOHN DILLON CHIEF FINANCIAL OFFICER OF COX IN EXCHANGE COX WILL GET A 60 INTEREST IN THE COMPANY AND MR ROBBINS PRESIDENT OF COX CABLE WILL BE CHIEF EXECUTIVE SOUTHWESTERN BELL WILL OWN 40 OF THE COMPANY WITH OPTIONS TO RAISE THAT STAKE TO 50 BETWEEN THE THIRD AND FIFTH YEAR OF THE PARTNERSHIP IF THE COMPANIES BRING IN A NEW PARTNER SOUTHWESTERN HAS THE OPTION TO ACHIEVE OWNERSHIP PARITY WITH COX BOTH COX AND SOUTHWESTERN WILL HAVE TWO SEATS ON AN EXECUTIVE COMMITTEE AND SAY THEY WILL JOINTLY RUN THE NEW COMPANY THE AGREEMENT GIVES SOUTHWESTERN BELL THE SAN ANTONIOBASED REGIONAL PHONE COMPANY A HIGHPROFILE VEHICLE FOR PURSUING CABLE OPPORTUNITIES AND OFFERING PHONE SERVICE OUTSIDE ITS FIVESTATE REGION THE 21 CABLE SYSTEMS THAT COX WILL CONTRIBUTE TO THE NEW VENTURE ARE SPRINKLED THROUGHOUT THE TERRITORIES OF SOUTHWESTERN BELL'S BABY BELL RIVALS PROVIDING READY ACCESS TO NEW TELEPHONE MARKETS JAMES KAHAN SENIOR VICE PRESIDENT OF STRATEGIC PLANNING AT SOUTHWESTERN BELL SAID THE COMPANY HASN'T YET TARGETED ITS FIRST COMPETITOR BUT AS WE EXPAND OUTSIDE OUR FIVE STATES WE'RE GOING TO BE IN SOMEBODY'S BACKYARD HE SAID COX'S MR ROBBINS SAID THE TWO COMPANIES DIDN'T HAVE TIME TO WORK OUT VALUATIONS ON COX'S PROGRAMMING INTERESTS WHICH INCLUDE A STAKE IN THE DISCOVERY CHANNEL AND SOME UNITED KINGDOM SHOWS BUT THOSE MIGHT BE FOLDED INTO THE NEW COMPANY LATER HE SAID THERE ARE NO CURRENT PLANS TO BRING COX'S INVESTMENT IN THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INC INTO THIS DEAL COX HAS AGREED TO CONTRIBUTE 500 MILLION TOWARD QVC NETWORK INC'S OFFER FOR PARAMOUNT SAID MR KAHAN AT SOUTHWESTERN BELL I'M PERSONALLY NOT CONVINCED THAT BUYING A STUDIO IS THE RIGHT WAY TO ACHIEVE THE STRATEGIC OBJECTIVES WE HAVE WHILE MR ROBBINS SAID THE VENTURE WILL SCAN THE LANDSCAPE FOR PROGRAMMING OPPORTUNITIES HE EMPHASIZED THAT ITS FIRST THRUST WILL BE TO INCREASE THE NUMBER OF CUSTOMERS ON THE DISTRIBUTION SIDE BECAUSE OF REGULATORY RESTRICTIONS COX CANNOT BRING ITS CABLE OPERATIONS IN OKLAHOMA CITY AND LUBBOCK TEXAS WHICH FALL IN SOUTHWESTERN BELL'S REGIONAL TELEPHONE TERRITORY INTO THE NEW PARTNERSHIP IN ADDITION SOUTHWESTERN SAID IT WON'T CONTRIBUTE THE TWO CABLE PROPERTIES IT BOUGHT EARLIER THIS YEAR FROM HAUSER COMMUNICATIONS SOUTHWESTERN BELL EXECUTIVES WOULDN'T COMMENT ON REPORTS THAT THEY ARE NEGOTIATING TO BUY WOMETCO CABLE CO AND GEORGIA CABLE TELEVISION WOMETCO IS OWNED BY ROBERT M BASS OF HOUSTON WHO ALSO OWNS 80 OF GCTV BUT A PERSON FAMILIAR WITH THE SITUATION SAID THE NEW PARTNERSHIP WILL MAKE IT EASIER TO BUY WOMETCO AND THAT DEAL IS STILL EXPECTED THE JOINT VENTURE WILL HAVE ENOUGH CASH AND BORROWING POWER TO BUY CABLE PROPERTIES WITHOUT ADDITIONAL CONTRIBUTIONS FROM EITHER PARTNER ACCORDING TO MR KAHAN AT SOUTHWESTERN BELL TELECOMMUNICATIONS EXPERTS THOUGH CAUTION THAT THE INDUSTRY MAY BE GETTING FLOODED WITH TOO MUCH MONEY CHASING TOO FEW QUALITY CABLE OPERATORS WE'RE QUICKLY GETTING TO THE POINT WHERE THERE IS GOING TO BE A SHORTAGE OF PROPERTIES AND VALUES ARE GOING TO GO UP SAID BRIAN DEEVY PRESIDENT OF DANIELS & ASSOCIATES A DENVER INVESTMENTBANKING FIRM SPECIALIZING IN TELECOMMUNICATIONS MR ROBBINS SAID COX CABLE MIGHT EVENTUALLY BRING ITS 25 INTEREST IN TELEPORT COMMUNICATIONS GROUP INTO THE NEW COMPANY A MOVE THAT WOULD UNDERSCORE HOW COMPLEX ALLIANCES BETWEEN PHONE AND CABLE MIGHT BECOME TELEPORT WHICH IS ONE OF THE WORLD'S LARGEST COMPETITIVEACCESS TELEPHONE PROVIDERS LAST WEEK ANNOUNCED PLANS TO ORGANIZE CABLE OPERATORS IN LARGE MARKETS TO COMPETE AGAINST REGIONAL PHONE COMPANIES SUCH AS SOUTHWESTERN BELL COX HAS BEEN TALKING WITH SOUTHWESTERN BELL SINCE LATE SPRING IN MAY THE TWO COMPANIES COMPLETED A TELEPHONE AND CABLETV PARTNERSHIP IN THE UK THE AGREEMENT ANNOUNCED YESTERDAY IS EXPECTED TO BE COMPLETED BY THE END OF THE FIRST QUARTER OF 1994 AND THE PARTNERSHIP FORMED AT THE END OF THE THIRD QUARTER IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SOUTHWESTERN BELL SHARES GAINED 125 CENTS TO CLOSE AT 4350 A SHARE LESLIE CAULEY IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9312080074 931208 TEXACO EXPECTS TO COMPLETE PACT ON OIL WITH RUSSIA BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL WHITE PLAINS NY TEXACO INC SAID IT EXPECTS TO FINALIZE AN AGREEMENT EARLY NEXT YEAR WITH THE RUSSIAN GOVERNMENT TO DEVELOP A SERIES OF HUGE OIL FIELDS AT A COST OF 2 BILLION TO 3 BILLION THE COMPANY ALSO SAID IT'S IN THE FINAL STAGES OF PUTTING TOGETHER A CONSORTIUM TO DEVELOP THOSE FIELDS THE 11 FIELDS ARE IN THE TIMAN PECHORA AREA OF RUSSIA 1100 MILES NORTHEAST OF MOSCOW TEXACO WHICH IS ALREADY RESTORING PRODUCTION TO IDLE WELLS IN RUSSIA'S SUTORMIN FIELD IN WESTERN SIBERIA HAS BEEN WORKING IN THE TIMAN PECHORA AREA FOR AT LEAST THREE YEARS RECOVERABLE RESERVES ARE ESTIMATED AT 24 BILLION BARRELS PRODUCTION COULD PEAK AT 230000 BARRELS A DAY ROUGHLY THE OUTPUT OF A SMALL OILPRODUCING COUNTRY THE AGREEMENT WOULD CREATE THE LARGEST COMMERCIAL PROJECT IN RUSSIA AND IT COULD BECOME ONE OF THE COMPANY'S CORE CASH GENERATORS PETER I BIJUR TEXACO'S SENIOR VICE PRESIDENT OF INTERNATIONAL OIL OPERATIONS TOLD ANALYSTS YESTERDAY AT THE COMPANY'S HEADQUARTERS HERE TEXACO IS PUSHING TO INCREASE ITS INTERNATIONAL OIL AND GAS OUTPUT AND THE TIMAN PECHORA VENTURE IS MOST IMPORTANT MR BIJUR SAID IT COULD BE A KEY ELEMENT IN TEXACO'S FUTURE SAID WILLIAM RANDOL OIL ANALYST FOR SALOMON BROTHERS INC TO DATE THE COMPANY HAS SPENT 50 MILLION ON THE PROJECT TEXACO SAID IT WON'T PROCEED UNLESS IT RECEIVES PARLIAMENTARY APPROVAL OF ITS AGREEMENT TO SHARE PRODUCTION WITH THE RUSSIAN GOVERNMENT A NOD FROM THE PARLIAMENT WOULD LEGALIZE THE AGREEMENT PREVENTING COMPLICATIONS ARISING FROM THE REPUBLIC'S EXPORT TAX MANY PROJECTS IN RUSSIA HAVE RUN INTO TROUBLE BECAUSE OF THE TAX WHICH LEVIES A CHARGE OF 5 ON EACH BARREL OF EXPORTED OIL TEXACO EXECUTIVES WHO SAY PARLIAMENTARY APPROVAL IS PROBABLE ARE PUTTING TOGETHER A CONSORTIUM WITH TWO VERY LARGE US OIL COMPANIES AND ONE EUROPEAN COMPANY SAID THOMAS HAZEN THE TEXACO EXECUTIVE HEADING THE PROJECT HE DECLINED TO IDENTIFY THE COMPANIES TEXACO WILL RETAIN 30 OF THE VENTURE WHICH MR HAZEN SAID COULD ADD 300 MILLION A YEAR TO TEXACO'S CASH FLOW FOR 18 YEARS INITIAL PRODUCTION COULD BEGIN AS EARLY AS 1997 WITH OUTPUT ESTIMATED AT 50000 BARRELS DAILY THE GIANT ROMAN TREBSA FIELD WOULD BE BROUGHT ON LINE FIRST THE CONSORTIUM IS AIMING TO MOVE ITS PRODUCTION OUT VIA THE PECHORA SEA MOVING THE OIL BY WATER WOULD ALLOW THE GROUP TO CIRCUMVENT RUSSIA'S DETERIORATING PIPELINE SYSTEM MR HAZEN SAID SO FAR THE RUSSIAN GOVERNMENT HAS DRILLED 130 EXPLORATORY WELLS IN THE REGION WITH 60 OF THEM STRIKING OIL THAT'S A PHENOMENAL RATE MR HAZEN SAID TYPICALLY IF YOU GET A 10 STRIKE RATE YOU'RE DOING WELL HE SAID MUCH OF THE OIL IS OF THE SAME QUALITY AS BRENT CRUDE A HIGHGRADE NORTH SEA CRUDE 9312080073 931208 BUSINESS BRIEF POWER CORP OF CANADA HOLDING COMPANY FORMED FOR LAND PROJECT IN CHINA POWER CORP OF CANADA AND CHINA INTERNATIONAL TRUST & INVESTMENT CORP SAID THEY FORMED A HONG KONGBASED HOLDING COMPANY TO HELP DEVELOP THE PUDONG ECONOMIC ZONE OUTSIDE SHANGHAI THE EQUALLY OWNED VENTURE CITICPOWER INVESTMENTS CO WILL HOLD TWOTHIRDS OF A JOINT VENTURE TO BE FORMED WITH SHANGHAI ZHANGJIANG HITECH PARK DEVELOPMENT CO TO DEVELOP UP TO ONE SQUARE KILOMETER OF LAND IN PUDONG AN INITIAL INVESTMENT OF ABOUT 45 MILLION WILL BE USED TO DEVELOP ROADS COMMUNICATIONS ELECTRICITY AND OTHER INFRASTRUCTURE FOR PUDONG'S HIGHTECH SECTOR A POWER SPOKESMAN SAID WORK IS TO BEGIN WITHIN MONTHS POWER IS A MONTREAL HOLDING COMPANY WITH INTERESTS IN FINANCIAL SERVICES AND COMMUNICATIONS CITIC IS AN INVESTMENT COMPANY OWNED BY THE CHINESE GOVERNMENT SHANGHAI ZHANGJIANG IS CONTROLLED BY THE CITY OF SHANGHAI 9312080072 931208 SMALL STOCK FOCUS PRICES EDGE UP LIFTED BY DOW RECORD BUT NASDAQ COMPOSITE DROPS SLIGHTLY BY CAITLIN MOLLISON AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCK PRICES TILTED TO THE POSITIVE SIDE IN LATE TRADING AS THE DOW JONES INDUSTRIAL AVERAGE JUMPED TO A CLOSING HIGH THE INDUSTRIAL AVERAGE FINISHED UP 867 POINTS OR 023 TO 371888 PAST THE PREVIOUS RECORD OF 371077 ALTHOUGH SMALLER STOCKS LANGUISHED MOST OF THE DAY IN SLOW TRADING OBSERVERS SAID THE GROUP GOT A SMALL SHOT IN THE ARM FROM THE NEW YORK STOCK EXCHANGE'S PERFORMANCE SLIGHTLY WEAKER BOND PRICES THREATENED TO TAKE GROUND FROM THE RUSSELL 2000 INDEX BUT THE BAROMETER MANAGED TO EDGE 005 POINT HIGHER TO 25403 THE INDEX MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES NASDAQ ISSUES FINISHED MARGINALLY LOWER THE MARKET'S COMPOSITE INDEX DROPPED 174 POINTS OR 023 TO 76935 DECLINERS TOPPED NASDAQ GAINERS 1592 TO 1408 ON NASDAQ NATIONAL MARKET VOLUME OF 245722200 SHARES AND TOTAL VOLUME OF 296400800 THESE FIGURES WERE ABOUT ON PAR WITH VOLUME OF 246188900 SHARES AND TOTAL VOLUME OF 292659600 ON MONDAY AFTER THE MARKET CLOSED AN INITIAL PUBLIC OFFERING OF GATEWAY 2000 SHARES WAS PRICED AT 15 A SHARE OR THE TOP END OF THE PROPOSED 13 TO 15 RANGE THROUGH LEAD UNDERWRITER GOLDMAN SACHS AND COMANAGER PAINEWEBBER THE NORTH SIOUX CITY SD COMPANY IS THE LEADING DIRECT MARKETER OF PERSONAL COMPUTERS IN THE US THERE'S BEEN A LOT OF INTEREST IN THE DEAL AND I THINK IT WILL TRADE WELL TODAY SAID KATHLEEN SMITH AN ANALYST AT RENAISSANCE CAPITAL IN GREENWICH CONN THE FACT THAT IT PRICED AT THE HIGH END OF THE RANGE IS A POSITIVE THE COMPANY OFFERS GOOD VALUE AND SERVICE RENAISSANCE WHICH PROVIDES RESEARCH ON IPO'S TO INSTITUTIONS SAID THAT WHILE THE COMPANY FACES SOME RISK OF SEEING ITS OPERATING MARGINS COME UNDER PRESSURE IN AN EXTREMELY COMPETITIVE INDUSTRY GATEWAY IS THE MOST PROFITABLE MAKER OF VALUEPRICED PCS AND IS EXPANDING IN EUROPE AT 15 A SHARE THE COMPANY WOULD TRADE AT A MULTIPLE OF 10 TIMES EXPECTED 1994 EARNINGS BUT OTHER ANALYSTS HAVE SAID THE PC BUSINESS IS CONSOLIDATING AROUND NAMEBRAND MANUFACTURERS AND THERE'S A QUESTION AS TO HOW WELLKNOWN A BRAND NAME GATEWAY IS THE OTHER MAJOR QUESTION IS WHETHER THE DIRECTMAIL CHANNEL IS THE BEST DISTRIBUTION MODE FOR PCS THEY SAID AMONG NEW OFFERINGS CELLSTAR JUMPED TO 13 1/2 FROM ITS DEBUT PRICE OF 11 1/2 A SHARE THE CARROLLTON TEXAS CELLULARTELEPHONE SUPPLIER SAID IT WILL USE PROCEEDS TO REPAY DEBT AND FOR WORKING CAPITAL TO SUPPORT THE GROWTH OF OPERATIONS ELSEWHERE IN THE COMMUNICATIONS GROUP PAIRGAIN TECHNOLOGIES CERRITOS CALIF CLIMBED 2 5/8 TO 13 1/8 FOLLOWING AN INITIAL BUY RATING FROM OLDE DISCOUNT THE BROKERAGE FIRM SAID THAT AS THE NEED GROWS FOR HIGHSPEED DATA TRANSMISSION AND BETTER DATA QUALITY AND RELIABILITY DEMAND SHOULD ACCELERATE FOR PAIRGAIN'S LOWCOST FIBEROPTICQUALITY PRODUCTS FRESH CHOICE WAS UP 2 TO 23 ALEX BROWN & SONS RAISED ITS RATING ON THE SANTA CLARA CALIF OPERATOR OF CASUAL UPSCALE RESTAURANTS TO STRONG BUY FROM BUY ON THE DOWN SIDE ALPHA 1 BIOMEDICALS DROPPED 4 1/8 TO 14 3/8 THE BETHESDA MD PHARMACEUTICALS FIRM SAID THAT BECAUSE OF MANUFACTURING DIFFICULTIES IT WON'T BE ABLE TO SUPPLY ITS THYMOSIN ALPHA 1 HEPATITIS DRUG TO SCICLONE PHARMACEUTICALS AS SCHEDULED SCICLONE BASED IN SAN MATEO CALIF DROPPED 1 1/8 TO 23 1/4 SHARES OF BABBAGE'S FELL 2 1/4 TO 17 1/2 IN RESPONSE TO THE COMPANY'S SLUGGISH SALES IN THE PAST FEW WEEKS SAID LYNN DETRICK AN ANALYST WITH WILLIAMS MCKAY JORDON & CO MS DETRICK SAID THE DALLAS COMPANY TOLD ANALYSTS THAT ITS SALES THROUGH LAST WEEKEND HADN'T IMPROVED MUCH FROM THEIR 10 DECLINE IN NOVEMBER SOFTWARE ETC STORES OF EDINA MINN WHICH LIKE BABBAGE'S OPERATES STORES THAT SELL SOFTWARE FOR HOME COMPUTERS FELL 2 3/4 TO 11 1/2 TUESDAY MORNING A DALLAS DISCOUNTSTORE OPERATOR SHED 1 1/4 TO 6 1/4 THE COMPANY SAID SALES FOR THE FISCAL FOURTH QUARTER ENDED DEC 4 FELL 6 TO 481 MILLION FROM 512 MILLION A YEAR EARLIER SAMESTORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR FELL ABOUT 18 ANOTHER RETAILER PROFFITT'S FELL 3 1/8 TO 21 3/4 THE ALCOA TENN COMPANY'S CHIEF FINANCIAL OFFICER JULIA BENTLEY SAID THE SHARE PRICE MIGHT HAVE DROPPED BECAUSE OF CONCERNS OVER THE OVERALL RETAIL ENVIRONMENT AND PROFFITT'S NOVEMBER COMPARABLESTORE SALES RESULTS THE DEPARTMENTSTORE CHAIN'S NOVEMBER SAMESTORE SALES ROSE BY WHAT MS BENTLEY CALLED A LACKLUSTER 23 NASDAQ NATIONAL MARKET STOCKS THAT HIT HIGHS FOR THE YEAR TO DATE TOTALED 76 WHILE 47 ISSUES HIT LOWS RICHARD SILVERMAN EXECUTIVE VICE PRESIDENT AND HEAD TRADER AT REICH & CO DOESN'T ANTICIPATE THAT ANY BIG BETS WILL BE MADE BEFORE THURSDAY OR FRIDAY WHEN THE LABOR DEPARTMENT RELEASES NOVEMBER PRODUCER AND CONSUMER PRICE DATA HE ADDED THAT THE JANUARY EFFECT ALSO HAS HELD BACK BUYING THE SEASONAL TREND IS THE RESULT OF MARKET PLAYERS BUYING BACK STOCKS THEY SOLD OFF AT THE END OF THE YEAR STOCKS THAT HAVE FALLEN PRECIPITOUSLY DURING THE YEAR OFTEN ARE DUMPED BY YEAR END TO TAKE THE LOSSES FOR TAX PURPOSES INSTITUTIONS ALSO TEND TO SELL LAGGARDS TO SHORE UP THEIR PORTFOLIOS BEFORE THE NEW YEAR EXAMPLES OF THIS PHENOMENON MR SILVERMAN SAID INCLUDE AMBER'S STORES WHICH CLOSED 1/4 LOWER AT 5 1/4 DOWN FROM ITS HIGH THIS YEAR OF 16 3/4 IN JANUARY AND HELEN OF TROY WHICH ENDED YESTERDAY'S SESSION 1/2 LOWER TO 14 1/2 DOWN FROM ITS HIGH OF 19 7/8 IN MAY 9312080071 931208 IF HUMAN DARTBOARDS THRILL YOU BE SURE TO CATCH THIS SHOW A TRAVELING TROUPE IS PACKING NIGHTCLUBS BY PERFORMING VARIOUS GROTESQUE ACTS BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SALT LAKE CITY IT IS NEARLY MIDNIGHT AT CLUB DV8 AND THE OVERFLOW CROWD TO SEE THE JIM ROSE CIRCUS SIDESHOW GAPES AS MR ROSE EASES HIMSELF FACE DOWN ONTO A PILE OF BROKEN GLASS WITH HIS WISPY GOATEE INCHES FROM THE COLORED SHARDS MR ROSE SUDDENLY STOPS JUMPS UPRIGHT AND THEATRICALLY SNATCHES A PIECE OF PAPER OUT OF THE GLASS PILE PAPER CUTS HE GROWLS WADDING IT UP AND TOSSING IT INTO THE CROWD THEY'RE THE WORST STEP RIGHT UP FOR THE LATEST TWIST IN CARNIVAL HUMOR THE GEEK SHOW GEEKS ONCE DREW GAWKERS TO CARNIVAL SIDESHOWS BY PERFORMING SUCH GROTESQUERIES AS EATING GLASS AND BITING THE HEADS OFF LIVE CHICKENS MR ROSE A 36YEAROLD FORMER STREET PERFORMER FROM SEATTLE WHO SOMETIMES BILLS HIMSELF AS JIMMY THE GEEK DOESN'T USE CHICKENS BUT HE AND HIS TROUPE ARE MAKING GEEKS CHIC AMONG BORED YOUNG MUSIC FANS AT NIGHTCLUBS AND HALLS BY ADOPTING SOME OF THE OLD SIDESHOWS' MORE BIZARRE ACTS ON THIS NIGHT FOR EXAMPLE MR ROSE HAS ALREADY STAPLED A 5 BILL TO HIS FOREHEAD GROUND OUT A CIGARETTE ON HIS TONGUE WITH A STERN WARNING ABOUT THE DANGERS OF SMOKING AND SHOVED A LONG NAIL UP HIS LEFT NOSTRIL HIS WIFE BEBE THE CIRCUS QUEEN HAS TOSSED DARTS INTO HIS BACK THE REST OF THE SHOW FEATURES A SWORD SWALLOWER A TATTOOED MAN WHO GULPS DOWN LIVE WORMS AND THE TORTURE KING WHO GRINS MANIACALLY AS HE PUSHES METAL PINS THROUGH HIS CHEEKS AS THE TORTURE KING SHOVES HIS FACE IN FRONT OF A HISSING BLOWTORCH MR ROSE CROONS BEEOOTIFUL TORTURE KING INTO THE MICROPHONE AND SHOUTS IT'S FAINTING ROOM ONLY TONIGHT STRANGE BUT PERHAPS THE STRANGEST OF ALL IS THAT THE AUDIENCE SEEMS TO LOVE THIS MASOCHISTIC MAYHEM AT DV8 A NIGHTSPOT THAT USUALLY FEATURES HARDROCK BANDS THE LINE WAITING TO SEE MR ROSE'S SHOW STRETCHES TOWARD THE HEADQUARTERS OF THE MORMON CHURCH TWO BLOCKS AWAY HUNDREDS OF FANS ARE TURNED AWAY WHEN THE SHOW SELLS OUT MR ROSE WHO IS MASTER OF CEREMONIES TAUNTS THE SQUEAMISH DURING THE MORE DISTURBING ACTS SUCH AS MR LIFTO WHO HEFTS A PAIR OF STEAM IRONS FROM HOOKS PIERCED THROUGH VARIOUS BODY PARTS YOU'RE NOT LOOKING MR ROSE SHOUTS AT THE AUDIENCE YOU DON'T GET YOUR MONEY'S WORTH IF YOU DON'T LOOK GEEK FANS ARE UNEASY ABOUT THEIR APPRECIATION FOR THE ACTS IT'S KIND OF DEMENTED TO ACTUALLY ENJOY WATCHING PEOPLE THROWING DARTS AT EACH OTHER SAYS KATHARINE HEALEY A 21YEAROLD PRESCHOOL TEACHER WHO HAS PAID 12 AND WAITED OUTSIDE DV8 FOR MORE THAN AN HOUR TO SEE THE SHOW HER COMPANION ROBERT ISON 23 SAYS MR ROSE'S PERFORMANCE OFFERS AN ALTERNATIVE TO THE STAGNANT ROCK MUSIC SCENE IT'S LIKE WATCHING MAGICIANS AND JUGGLERS BUT WITHOUT THE ILLUSION SAYS MR ISON HE'S THE BARNUM & BAILEY OF THE '90'S MR ROSE INSISTS THAT THE ACTS IN HIS SHOW ARE FOR REAL MR ROSE AND HIS UNUSUAL TROUPE DO SEEM TO HAVE STRUCK A CHORD THEY WERE THE SURPRISE HIT OF LAST YEAR'S LOLLAPALOOZA ROCK TOUR AND HAVE DRAWN SELLOUT CROWDS ACROSS THE US AND EUROPE THIS YEAR SALLY JESSE RAPHAEL HAS HAD HIM ON HER TV SHOW AND RECENTLY MR ROSE ACQUIRED THAT SHOWBIZ STATUS SYMBOL AN AGENT FROM WILLIAM MORRIS THERE'S SO MUCH HIGH TECH AND LIP SYNCHING IN THE MUSIC BUSINESS THESE DAYS THAT YOUNG PEOPLE ARE LOOKING FOR SOMETHING REAL AND JIM IS VERY REAL SAYS STEPHANIE DORGAN OWNER OF THE CROCODILE CAFE A SEATTLE GRUNGEBAND HANGOUT THAT IS PACKED WHENEVER MR ROSE PERFORMS THERE MR ROSE EVEN SEEMS TO HAVE WON OVER HIS MORE SKITTISH CRITICS WHEN THE LOLLAPALOOZA TOUR WENT TO ST PAUL MINN LAST YEAR CITY COUNCILMAN DAVID THUNE THREATENED TO WITHHOLD THE SHOW'S CITY PERMITS IF MR LIFTO PERFORMED HIS ROUTINE WE WANTED TO MAKE SURE MR LIFTO WASN'T EXPOSING HIMSELF IN FRONT OF 10000 PEOPLE AT A CITYSPONSORED EVENT MR THUNE RECALLS THE SHOW WENT ON AFTER MR LIFTO PROMISED TO CURB HIS ACT MR THUNE WHO BROUGHT HIS FAMILY SAYS HE ENJOYED IT THIS IS THE SAME THING THAT MAKES PEOPLE DRIVE PAST TRAFFIC ACCIDENTS AT FIVE MILES AN HOUR HE SAYS IT WAS WONDERFULLY STRANGE ROBERT BOGDAN A SYRACUSE UNIVERSITY SOCIOLOGIST WHO HAS STUDIED FREAK SHOWS SAYS THEY FLOURISHED UP TO THE 1920S BECAUSE PEOPLE STILL FOUND THE GROTESQUE TO BE EXOTIC BUT THOSE SIDESHOWS HE SAYS HAD LIMITS THE ELEPHANT MAN NEVER MADE IT AS A BIGTIME ATTRACTION BECAUSE HE WAS TOO UGLY HE SAYS THE SIDESHOW IS PRACTICING A NEW FORM OF INYOURFACE ENTERTAINMENT THAT STRETCHES LIMITS MR BOGDAN SAYS INDEED IT IS THE ANTISOCIAL ASPECT OF MR ROSE'S SHOW THAT DRAWS HIS AUDIENCES HE SAYS THEY'RE TAUNTING THE ADULT WORLD SAYS MR BOGDEN THIS IS THE OTHER SIDE OF THE SYMPHONY AND HIGH ART THE STUFF IS SO VILE IT BECOMES AN ATTRACTION IN ITSELF MR ROSE MAY ALSO BE TAPPING INTO THE CURRENT MAINSTREAM FASCINATION WITH BODY PIERCING AND TATTOOING WHEN SASSY MAGAZINE PICKED ITS SASSIEST GIRL IN AMERICA FOR 1993 IT CHOSE 15YEAROLD STEPHANIE HOWELL AND RAN A COVER PHOTO OF HER NOSE RING AND ALL JACK KAPLAN OWNER OF BODY BASICS A CHICAGO TATTOO AND BODY PIERCING PARLOR SAYS TEENAGE GIRLS BEGAN COMING IN DEMANDING HE PUT RINGS THROUGH THEIR NAVELS RECENTLY AFTER THE ROCK BAND AEROSMITH RELEASED A VIDEO SHOWING A YOUNG WOMAN GETTING A NAVEL RING MR ROSE HONED HIS CRAFT PERFORMING ON STREETCORNERS IN SEATTLE PARIS AND VENICE BEACH CALIF THE SECRET TO SUCCESSFUL GEEKDOM IS BODY CONTROL AND MENTAL TOUGHNESS MR ROSE SAYS BEFORE HE RECLINES ON A PILE OF GLASS FOR EXAMPLE HE CAREFULLY STUDIES THE CONTOURS OF THE PILE TO AVOID SHARP EDGES I PROBABLY KNOW MORE ABOUT LYING IN BROKEN GLASS THAN ANYONE ON EARTH HE SAYS SO FAR THE STUNT HASN'T LEFT ANY SERIOUS CUTS HE SAYS NONETHELESS EVEN MR ROSE HAS HIS LIMITS WHEN HE DECIDED TO ADD DARTTHROWING TO HIS ACT HE SAYS HE LET HIS WIFE TOSS THREE DARTS INTO HIS BACK TO SEE IF HE COULD STAND IT I SAID STOP THAT'S ENOUGH I CAN DO THIS' WHO THE HELL WANTS TO PRACTICE BEING A HUMAN DARTBOARD MR ROSE REJECTS SUGGESTIONS THAT HIS POPULARITY IS PART OF A LARGER FAD FOR TATTOOING AND BODY PIERCING PARTICULARLY WITHIN SOME WEST COAST CULTS I'M PROBABLY AN INFLUENCE AMONG SOME OF THEM BUT HUMAN PINCUSHIONS AND TATTOOS ARE REALLY OLD CIRCUS STUFF HE SAYS MY SHOWS ARE CROWDED WITH MICROSOFT PEOPLE JOHNNY MAINSTREAM TYPES WHO ARE INTERESTED IN SEEING THE HUMAN BODY IN AN UNFAMILIAR SITUATION WHILE HE DOES TRY TO HORRIFY HIS AUDIENCE MR ROSE TEMPERS THE ACT WITH HUMOR I MAKE IT SEEM LIKE THE WORLD'S GREATEST PARTY TRICK YOU CLAP AND SCREAM AND THEN YOU HANG AROUND AFTERWARD AND BUY A TSHIRT SOME FANS CROWD AROUND AFTER SHOWS SEEKING MR ROSE'S AUTOGRAPH ON BAGS OF BROKEN GLASS THEY HAVE COLLECTED FROM THE STAGE AT DV8 THIS NIGHT THE CROWD LOOKS MORE LIKE A COLLEGE REUNION THAN A CULT EDWARD RICHARDS A 37YEAROLD BUSINESS CONSULTANT ADMITS HE HAD TO LEAVE DURING ONE OF THE SHOW'S RAWEST ACTS IN WHICH A PERFORMER KNOWN AS MATT THE TUBE CROWLEY INGESTS AND THEN REGURGITATES A MIXTURE OF BEER CHOCOLATE SAUCE KETCHUP AND MAALOX BUT HIS WIFE LINDA STAYED TO WATCH IF PEOPLE WILL PAY TO SEE THIS MR RICHARDS SAYS THEY'LL PAY TO SEE ANYTHING 9312080070 931208 ENVIRONMENT MANAGING WASTE BY JEFF BAILEY WHAT MAY BE THE LAST VIETNAM WARERA STOCKPILE OF NAPALM IS LIKELY TO BE DESTROYED AFTER SEVERAL BUNGLED EFFORTS BEGINNING NEXT YEAR THE NAPALM ABOUT 23 MILLION POUNDS OF THE NOTORIOUS STUFF SITS IN ABOUT 35000 DRUMS AT A US NAVAL WEAPONS COMPLEX IN FALLBROOK CALIF INLAND FROM SAN DIEGO THE NAVY'S PROBLEMS GETTING RID OF THE NAPALM ONE OF THE SIMPLEST OF THE LEFTOVER WEAPONS AND WASTES IN THE DEFENSE DEPARTMENT'S EXOTIC ARSENAL HELPS SHOW WHY THE MASSIVE CLEANUP OF MILITARY SITES IS GOING TO BE SO COMPLEX AND COSTLY A NAVY SPOKESMAN RICHARD WILLIAMSON HASTENS TO POINT OUT IT'S NOT OUR NAPALM THE AIR FORCE DROPPED IT OFF IN FALLBROOK IN 1972 WHEN THE WAR ENDED IN 1975 IT NEVER CAME BACK TO PICK UP THE NAPALM HE SAYS DURING THE 1980S THE NAVY ON THREE OCCASIONS HIRED CONTRACTORS WHO PLANNED TO BREAK DOWN THE FLAMMABLE GOOP INTO ITS THREE CONSTITUENT PARTS 33 GASOLINE 21 BENZENE AND A STICKY 46 POLYSTYRENE AND THEN SELL THEM BUT THE CONTRACTORS RAN INTO EITHER TECHNICAL OR FINANCIAL PROBLEMS MEANWHILE INCREASING NUMBERS OF THE CANNISTERS HAVE SPRUNG LEAKS REQUIRING PATCHING AND REPACKAGING NOW THE NAPALM IS A SMALL PART OF A 250 MILLION DEFENSE CLEANUP CONTRACT UP FOR GRABS IN THE REGION AND MANY MAJOR WASTEHANDLING COMPANIES ARE EXPECTED TO BID THE NAVY STILL HOPES TO RECYCLE THE NAPALM AND SELL THE PARTS BUT AT THIS POINT MR WILLIAMSON SAYS THE WHOLE SLEW COULD BE REMOVED AND BURNED THESE DAYS NAPALM IS A READYMIX WEAPON WITH ITS CONSTITUENTS COMBINED JUST BEFORE AN AIRCRAFT TAKES OFF THE NAVY SAYS THAT MINIMIZES THE AMOUNT OF UNUSED NAPALM THAT MUST BE STORED NORMAN LEVINE A PHD CANDIDATE IN GEOLOGY AT PURDUE UNIVERSITY CAME UP WITH A DISSERTATION TOPIC BACK IN 1991 MAPPING INDIANA'S ROCK FORMATIONS WATER TABLES AND OTHER GEOLOGICAL FACTORS TO CHOOSE THE SAFEST SITES POSSIBLE FOR HAZARDOUSWASTE DUMPS UNGLAMOROUS YES BUT POTENTIALLY VERY PROFITABLE I WANTED SOMETHING THAT HAD REALWORLD USAGE SAYS MR LEVINE WHO EXPECTS TO HAND IN HIS FINISHED STUDY NEXT MARCH IT WAS CERTAINLY TIMELY WHEN HE STARTED THE ENVIRONMENTAL PROTECTION AGENCY WAS PRODDING EVERY STATE TO DEMONSTRATE ITS OWN CAPACITY TO HANDLE HAZARDOUS WASTES AND THREATENING TO WITHHOLD CLEANUP MONEY EARMARKED UNDER THE FEDERAL SUPERFUND LAW FROM STATES THAT FAILED TO DO SO MR LEVINE SET ABOUT ANALYZING SOIL TYPES EARTHQUAKE PATTERNS FLOODING HISTORIES FEEDING IT ALL INTO A SINGLE DATABASE IT'S LIKE HAVING A PANEL OF EXPERTS AT YOUR FINGERTIPS HE SAYS BEFORE HE COULD FINISH HOWEVER THE NEED FOR NEW HAZARDOUSWASTE DUMPS ALL BUT VANISHED SURPRISING EVEN THE EPA IT SEEMS CHEMICAL AND MANUFACTURING COMPANIES HAVE FOUND WAYS TO REDUCE SHARPLY THE TOXIC WASTES THEY GENERATE AND SUPERFUND AND OTHER CLEANUPS OF OLD DUMP SITES HAVE MOVED AHEAD MORE SLOWLY THAN EXPECTED FURTHER KEEPING DOWN THE STREAM OF HAZARDOUS WASTES TODAY THE TOXICDUMP BUSINESS HAS A GLUT OF CAPACITY AND DISPOSAL PRICES HAVE TUMBLED AS FOR EACH STATE DEMONSTRATING ITS CAPACITY THE EPA HAS ESSENTIALLY SAID NEVER MIND HE'S A LITTLE LATE SAYS HUGH HOLMAN A WASTEINDUSTRY ANALYST AT ALEX BROWN & SONS IN BALTIMORE I'D BE SURPRISED IF WE BUILD ANY NEW HAZARDOUSWASTE LANDFILLS WE'LL PROBABLY CLOSE SOME BEFORE THEY'RE FULL UNDAUNTED MR LEVINE IS PUSHING AHEAD HIS COMPUTER MAP COULD BE OF USE IN LOCATING GARBAGE DUMPS AND NATURAL GAS PIPELINES HE SAYS THERE'S GOING TO BE A NEED LOOK FOR VIRGINIA TO RIVAL PENNSYLVANIA SOON AS THE EAST COAST'S DUMP KING INCREASING AMOUNTS OF VIRGINIA DISPOSAL CAPACITY HAVE COME INTO THE HANDS OF BIG GARBAGEHAULING COMPANIES AND THEY CAN BE EXPECTED TO MARKET THAT CAPACITY AGGRESSIVELY TO COMMUNITIES UP AND DOWN THE ATLANTIC COAST CHAMBERS DEVELOPMENT HAS TWO BIG DUMPS IN THE STATE AND TAKES TRASH BY RAIL CAR FROM AS FAR AWAY AS BOSTON AND NEW JERSEY BROWNINGFERRIS INDUSTRIES WON TWO NEW PERMITS EARLIER THIS YEAR FOR MAJOR DUMPS IN THE STATE AND HAS BEEN TRYING TO WIN LONGTERM DISPOSAL CONTRACTS WITH COMMUNITIES IN MARYLAND AND OTHER STATES AND BRAMBLES INDUSTRIES A BIG AUSTRALIAN WASTE CONCERN WITH OPERATIONS IN THE US RECENTLY BOUGHT A BIG VIRGINIA DUMP IN THE DEVELOPMENT STAGE THE COMBINED PERMITTED DAILY CAPACITY OF DUMPS IN VIRGINIA NOW FAR EXCEEDS THE STATE'S OWN TRASH GENERATION MEANWHILE NEW YORK AND NEW JERSEY THE ONLY MAJOR MARKETS ACTUALLY SHORT ON DISPOSAL CAPACITY ARE CLOSE BY PRICES BETWEEN 25 AND 45 A TON MAKE VIRGINIA AN ATTRACTIVE ALTERNATIVE FOR MUNICIPALITIES THAT SEND THEIR TRASH ELSEWHERE MANY EAST COAST CITIES PAY 60 A TON OR MORE THE INCREASED COMPETITION COULD FURTHER HURT BIG TRASH INCINERATORS IN THE PHILADELPHIA AREA THAT HAVE HAD TO CUT PRICES TO ATTRACT TRASH PENNSYLVANIA IN AN EFFORT TO ASSURE ITSELF OF DISPOSAL CAPACITY WITH THE LATEST ENVIRONMENTAL SAFEGUARDS PERMITTED HUGE AMOUNTS OF DUMP AND INCINERATOR CAPACITY TO COME ON LINE IN RECENT YEARS LITTER LOS ANGELES COUNTY EXTRACTS METHANE FROM ITS HUGE PUENTE HILLS DUMP PROCESSES IT INTO NATURAL GAS AT A NEW 15 MILLION PLANT AND USES THE FUEL TO RUN BULLDOZERS AND OTHER TRASHHANDLING VEHICLES AS BOOM TIMES FADE IN THE TRASH BUSINESS THE INDUSTRY'S TRADE GROUP THE NATIONAL SOLID WASTE MANAGEMENT ASSOCIATION FEELS PINCHED TOO STAFF HAS BEEN CUT 25 TO 95 PEOPLE SINCE 1990 9312080069 931208 INSURERS ORDERED TO PAY AMOCO FOR LAWSUIT COSTS LOS ANGELES A FEDERAL DISTRICT COURT JURY ORDERED MORE THAN 90 EUROPEAN INSURANCE COMPANIES TO PAY AMOCO CORP A TOTAL OF 4264 MILLION IN DAMAGES STEMMING FROM PRODUCTLIABILITY LAWSUITS INVOLVING IRRIGATION AND SEWER PIPE AFTER A FIVEWEEK TRIAL AND FOUR WEEKS OF DELIBERATION THE JURY FOUND THAT THE INSURERS ACTED IN BAD FAITH AND BEHAVED UNREASONABLY WHEN THEY REFUSED TO PAY FOR THE DEFENSE AND SETTLEMENT OF THE LIABILITY SUITS AMOCO SOLD THE BUSINESS WHICH MANUFACTURED LARGEDIAMETER FIBERGLASS REINFORCED PIPES IN THE EARLY 1980S BUT YEARS LATER THE COMPANY WAS HIT WITH SIX LAWSUITS CLAIMING THAT THE PIPES WERE DEFECTIVE AMOCO ULTIMATELY SETTLED THREE OF THE SUITS AND WON THE OTHER THREE THE COMPANY IN TURN SUED ITS INSURANCE CARRIERS ALLEGING THAT THEY UNREASONABLY REFUSED TO PARTICIPATE IN DISCUSSIONS TO RESOLVE THE LIABILITY CASES AND FAILED TO REIMBURSE AMOCO FOR THE EVENTUAL SETTLEMENT COSTS RONALD M OSTER THE LEAD ATTORNEY REPRESENTING AMOCO SAID THAT THE JURY AWARDED 40 MILLION IN COMPENSATORY DAMAGES AND 3864 MILLION IN PUNITIVE DAMAGES AGAINST THE INSURANCE COMPANIES INCLUDING 50 LLOYD'S OF LONDON SYNDICATES 9312080068 931208 ECONOMY RJR NABISCO TO CUT 95 OF WORK FORCE TAKE 4THQUARTER CHARGE OF 445 MILLION BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJR NABISCO HOLDINGS CORP SAID IT WILL ELIMINATE 6000 JOBS OR 95 OF ITS WORK FORCE REFLECTING ITS CHAIRMAN'S GRIM VIEW OF THE DOMESTIC TOBACCO MARKET THE RESTRUCTURING WILL RESULT IN A FOURTHQUARTER CHARGE OF 445 MILLION OR 32 CENTS A SHARE IN A RECENT INTERVIEW RJR CHAIRMAN CHARLES M HARPER SAID THE US TOBACCO MARKET RJR'S MOST IMPORTANT MARKET IS NOT A GROWTH BUSINESS ONCE TOBACCO PROFITS STABILIZE AFTER THIS YEAR'S DEVASTATING CIGARETTE PRICE WAR MR HARPER SAID I DON'T EXPECT DOMESTIC TOBACCO EARNINGS WILL BUILD AT ALL NONETHELESS MR HARPER STILL HAS SET AMBITIOUS PROFITGROWTH GOALS FOR RJR AS A WHOLE RJR'S LARGER RIVAL PHILIP MORRIS COS RECENTLY ANNOUNCED PLANS TO ELIMINATE 14000 JOBS OR 8 OF ITS WORLDWIDE WORK FORCE AND CLOSE AS MANY AS 40 PLANTS DESPITE PHILIP MORRIS'S MORE OPTIMISTIC VIEW OF THE US TOBACCO MARKET PHILIP MORRIS LAST WEEK SHUT ONE OF MILLER BREWING CO'S BREWERIES AS PART OF THOSE PLANS ANALYSTS ALSO EXPECT RJR TO CLOSE OR CURTAIL OPERATIONS AT SOME PLANTS RJR DECLINED TO IDENTIFY HOW THE JOB CUTS WOULD BE DIVIDED BETWEEN ITS TOBACCO AND FOOD BUSINESSES RJR HAD ALREADY ANNOUNCED PLANS TO CUT 1000 TOBACCOCOMPANY JOBS WHICH ARE INCLUDED IN THE 6000 FIGURE ITS DOMESTIC TOBACCO BUSINESS HAS ABOUT 8500 EMPLOYEES AND THE COMPANY HAS 63000 EMPLOYEES WORLDWIDE RJR'S MR HARPER SAID YESTERDAY THAT THE JOB CUTS COMBINED WITH CUTS IN RJR'S MARKETING BUDGET WILL ADD AN AVERAGE OF 250 MILLION A YEAR IN PROFITS ON THE FORECAST OF THE SIZABLE PROFIT GAINS RJR'S STOCK JUMPED 4 CLOSING UP 25 CENTS AT 650 IN HEAVY TRADING ON THE NEW YORK STOCK EXCHANGE STILL SOME ANALYSTS WERE DISAPPOINTED THAT THE SAVINGS OVER TIME WILL NOT BE GREATER THE CHARGE IS BIGGER THAN I THOUGHT BUT THE COSTSAVINGS AREN'T SAYS S LEIGH FERST TOBACCO ANALYST AT PRUDENTIAL SECURITIES INC DESPITE HIS DOUR VIEW OF THE TOBACCO BUSINESS MR HARPER HAS AN AGGRESSIVE GROWTH PLAN RELYING ON FOOD INTERNATIONAL TOBACCO AND ACQUISITIONS SOME ANALYSTS SAY MR HARPER IS PREPARING TO INCREASE EARNINGS BY 20 A YEAR WITH THE COSTCUTTING PROGRAM MR HARPER SAID WE ARE SETTING THE STAGE FOR EARNINGS GROWTH IN 1994 SOME ANTITOBACCO ACTIVISTS CLAIM THAT THE TOBACCO COMPANIES ARE HIGHLIGHTING THE NUMBER OF JOBS AT RISK WITH WEAKER TOBACCO PROFITS IN ORDER TO PUT PRESSURE ON PRESIDENT CLINTON NOT TO SHARPLY RAISE THE TOBACCO TAX THE JOB CUTS ARE BAD NEWS IN WINSTONSALEM NC WHERE RJR'S TOBACCO BUSINESS IS LOCATED RJ REYNOLDS HAS PLAYED SUCH A MAJOR ROLE IN THIS COMMUNITY IT'S NOT AN EASY THING TO ACCEPT THAT THEIR STRENGTH WILL BE SOMEWHAT DIMINISHED SAID FRED NORDENHOLZ PRESIDENT OF THE GREATER WINSTONSALEM CHAMBER OF COMMERCE WHEN A MAJOR EMPLOYER LIKE RJ REYNOLDS IS UNDER PRESSURE IT'S FELT THROUGHOUT THE COMMUNITY RJR ALSO SAID IT WILL CUT CORPORATE OVERHEAD AS WELL AS ITS PROMOTION AND MERCHANDISING SPENDING RJR HAS AN ESTIMATED MARKETING BUDGET OF 25 BILLION AND TOBACCO RETAILERS SAY RJR HAS ALREADY CUT ITS PAYMENTS TO THEM FOR GIVING PROMINENT DISPLAY TO THE COMPANY'S BRANDS AND ADVERTISEMENTS RJR AND OTHER TOBACCO COMPANIES ARE ALSO USING FEWER COUPONS CIGARETTEINDUSTRY PROFITS HAVE BEEN SHARPLY REDUCED THIS YEAR BY A CIGARETTE PRICE WAR LAUNCHED IN APRIL BY PHILIP MORRIS WHEN IT ANNOUNCED PLANS TO SLASH PREMIUM CIGARETTE PRICES BY 40 CENTS A PACK RECENTLY RJR AND OTHERS HAVE BEGUN TO MODESTLY RAISE PRICES AGAIN 9312080067 931208 BUSINESS BRIEF BANK OF BOSTON CORP BANK OF NEW YORK TO BUY CONCERN'S FACTORING BUSINESS BANK OF BOSTON CORP SAID IT PLANS TO SELL ITS FACTORING BUSINESS TO BANK OF NEW YORK CO FINANCIAL TERMS WERE NOT DISCLOSED A SPOKESWOMAN FOR BANK OF BOSTON SAID THE BANK WILL REALIZE A GAIN FROM THE SALE UNDER TERMS OF THE SALE AGREEMENT BANK OF NEW YORK WILL ASSUME THE DIVISION'S 230 MILLION LOAN PORTFOLIO AND 38 BILLION FACTORING VOLUME THE TRANSACTION IS EXPECTED TO CLOSE DURING THE FIRST HALF OF 1994 FACTORS BUY ACCOUNTS RECEIVABLE AT A DISCOUNT AND TAKE OVER THE JOB OF COLLECTING ALL THE MONEY DUE THE DIVISION EMPLOYS ABOUT 200 PEOPLE IN BOSTON CHARLOTTE NC MONTREAL AND TORONTO BANK OF BOSTON SAID MOST OF THEM WILL BE OFFERED OPPORTUNITIES TO CONTINUE AS EMPLOYEES FOR THE BANK OF NEW YORK 9312080066 931208 BUSINESS BRIEF HEALTHMOR INC FIRM'S UNIT BUYS DIVISION OF RECKITT & COLMAN CANADA HEALTHMOR INC SAID ITS CANADIAN SUBSIDIARY HMI INC PURCHASED THE HOUSEHOLD RENTAL SYSTEMS DIVISION OF RECKITT & COLMAN CANADA INC FOR 49 MILLION HEALTHMOR A CLEVELAND SELLER OF VACUUM CLEANERS AND FILTRATION EQUIPMENT SAID THE TRANSACTION SHOULD ADD 15 CENTS TO 22 CENTS A SHARE TO ANNUAL EARNINGS IN THE FIRST YEAR FOR THE YEAR ENDED SEPT 30 HEALTHMOR EARNED 49 MILLION OR 151 A SHARE THE ACQUIRED UNIT RENTS CARPETCLEANING MACHINES AND SELLS CARPETCLEANING PRODUCTS THE TRANSACTION ALSO INCLUDES AN EARNOUT PROVISION UNDER WHICH HEALTHMOR COULD PAY AN ADDITIONAL 19 MILLION OVER 10 YEARS DEPENDING ON BUSINESS EXPANSION AND REVENUE GENERATION RECKITT & COLMAN CANADA IS A UNIT OF RECKITT & COLMAN PLC OF BRITAIN 9312080065 931208 FOREIGN EXCHANGE DOLLAR GAINS A BIT ON MARK BUT EASES AGAINST YEN BULLS' FRUSTRATION GROWS BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR EDGED MARGINALLY HIGHER AGAINST THE MARK BUT EASED AGAINST THE YEN DISMISSING ADDITIONAL BULLISH NEWS TRADERS STUBBORNLY DECLINED TO AGGRESSIVELY BUY THE US CURRENCY STERLING WEAKENED BUT TRADERS DESCRIBED THE MOVE AS PROFITTAKING ON THAT CURRENCY'S RECENT RISE RATHER THAN A SIGN OF DOLLAR STRENGTH ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10767 YEN AND AT 17046 MARKS WITH TRADING ALREADY SLOWING AHEAD OF THE HOLIDAY SEASON MANY DEALERS SPENT THE DAY PONDERING THE DOLLAR'S RECENT SLIDE WHICH OCCURRED DESPITE A MYRIAD OF RECENT EVENTS THAT ORDINARILY WOULD FUEL DOLLAR BUYING LAST WEEK TRADERS NOTED PROFITTAKING REPEATEDLY QUASHED ANY CHANCE OF A STRONG DOLLAR RALLY DESPITE A STEADY STREAM OF EXTREMELY GOOD US ECONOMIC NEWS THAT PATTERN REMAINED INTACT YESTERDAY AS THE MARKET SHRUGGED OFF BULLISH COMMENTS BY A FEDERAL RESERVE BOARD MEMBER AND REFUSED TO PUSH THE DOLLAR HIGHER FEDERAL RESERVE BOARD GOVERNOR DAVID MULLINS SAID THAT THE US CENTRAL BANK PLANS TO ESSENTIALLY ELIMINATE INFLATION AND ADDED THAT THE NEXT FEW WEEKS WILL BE A VERY IMPORTANT TIME FOR MONETARY POLICY TRADERS INTERPRETED MR MULLINS'S COMMENTS AS A SIGN THAT THE FED COULD MOVE TO TIGHTEN US INTEREST RATES SOON TO NIP ANY INFLATION PRESSURES IN THE BUD THAT GENERALLY WOULD BE BULLISH FOR THE DOLLAR BY RAISING THE POSSIBILITY OF HIGHER YIELDS ON DOLLARDENOMINATED DEPOSITS BUT EVEN SO TRADERS REFUSED TO MAKE MAJOR PURCHASES OF THE DOLLAR NOTING THAT THE US CURRENCY'S REPEATED FAILURE TO ADVANCE HAS LEFT INVESTORS WONDERING WHETHER THEY HAVE SEEN THE LAST OF THE DOLLAR'S RECENT RALLY SOON AFTER THE COMMENTS BY MR MULLINS TRADERS NOTED THE DOLLAR STAGED A HALFHEARTED RALLY RISING TO A HIGH AROUND 17060 MARKS BUT AT THAT LEVEL THE DOLLAR WAS RUNNING OUT OF STEAM AND THERE WAS NO FOLLOWTHROUGH BUYING TO DRIVE IT HIGHER SAID PETER WILD SENIOR VICE PRESIDENT AT BANK JULIUS BAER & CO IN NEW YORK THE MARKET'S TRYING TO GET A FEEL FOR WHERE THE NEXT BIG MOVE IS SAID PETER WADKINS SENIOR VICE PRESIDENT AT MTB BANK IN NEW YORK ADDING THAT EACH DAY INCREASING NUMBERS OF DOLLAR BULLS ARE BECOMING DISCOURAGED THE DOLLAR NOW ISN'T MAKING ANY MAJOR FORWARD PROGRESS MR WADKINS SAID AT SOME POINT SOMETHING HAS GOT TO GIVE WE CAN'T KEEP SITTING HERE THE WAY WE HAVE BEEN THERE'S GOING TO BE FRUSTRATION AMONG THE DOLLAR BULLS FOR SOME TIME TO COME SAID EZRA ZASK PRESIDENT OF EZRA ZASK ASSOCIATES A CONNECTICUT FUND MANAGER HE ADDED THAT WITH STOCK AND BOND MARKETS IN EUROPE CONTINUING TO RALLY THE DOLLAR PROBABLY WILL BE UNDERCUT AS US INVESTORS SWITCH FUNDS INTO ASSETS THERE IF YOU LOOK AT WHERE THE CAPITAL HAS BEEN FLOWING OVER THE PAST COUPLE OF WEEKS IT HAS BEEN TO EUROPEAN MARKETS AND EMERGING MARKETS HE SAID THAT'S ALMOST ENTIRELY BECAUSE THE BOND AND STOCK MARKETS IN THOSE COUNTRIES CONTINUE TO SET RECORD HIGH AFTER RECORD HIGH HE ADDED 9312080064 931208 ECONOMY SHORTTERM INTEREST RATES TO BE LIFTED FED'S VICE CHAIRMAN MULLINS INDICATES BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE VICE CHAIRMAN DAVID MULLINS MADE CLEAR THAT THE FED WILL BOOST SHORTTERM INTEREST RATES BUT HE CAREFULLY AVOIDED GIVING CLUES AS TO WHEN IN REMARKS AT THE AMERICAN ENTERPRISE INSTITUTE MR MULLINS CHARACTERIZED CURRENT FED POLICY AS ACCOMMODATIVE A STANCE HE SAYS THE FED WON'T MAINTAIN INDEFINITELY BUT HE SUGGESTED THAT SUCH A POLICY HAS BEEN APPROPRIATE GIVEN THE LONG LIST OF CONTRACTIONARY FORCES ON THE HORIZON THE FED HAS BEEN HOLDING SHORTTERM INTEREST RATES STEADY SINCE SEPTEMBER 1992 WALL STREET ANALYSTS WIDELY ANTICIPATE THAT THE FED WILL BEGIN MOVING RATES UP EARLY NEXT YEAR ALTHOUGH THE FOURTHQUARTER LOOKS STRONG AND THE DOWNSIDE RISK TO THE RECOVERY APPEARS TO BE LESSENING MR MULLINS CITED SEVERAL FACTORS THAT ARE LIKELY TO KEEP THE ECONOMY FROM OVERHEATING THESE INCLUDE PRESIDENT CLINTON'S DEFICITREDUCTION PROGRAM CONTINUED CORPORATE RESTRUCTURING THE SHRINKAGE OF THE DEFENSE INDUSTRY THE WEAKNESS OF EXPORTS AND THE ECONOMIC ILLS OF CALIFORNIA DESPITE THE FACT THAT I AM A CENTRAL BANKER MR MULLINS ADDED I AM NOT OPPOSED TO GROWTH I AM OPPOSED TO INFLATION THEY AREN'T SYNONYMOUS MODERATE ECONOMIC GROWTH HE SAID ISN'T DESTINED TO PRODUCE INFLATIONARY PRESSURES BUT HE ALSO SAID THAT THE FED'S GOAL IS TO ELIMINATE INFLATION AND THAT HE SEES A ONCEINADECADE OPPORTUNITY TO REDUCE THE UNDERLYING RATE OF INFLATION BALANCING HIS REMARKS TO AVOID ANY IMPACT ON FINANCIAL MARKETS MR MULLINS NOTED THAT BROAD MEASURES OF MONEY AND CREDIT AREN'T GROWING MUCH PRODUCTIVITY SEEMS TO BE IMPROVING AND COMPETITIVE PRESSURES ARE RESTRAINING PRICE INCREASES BUT ALTHOUGH THESE ARE ALL SIGNS THAT INFLATION IS UNDER CONTROL HE ALSO POINTED TO SOME HARBINGERS OF INFLATION NARROWER MEASURES OF THE MONEY SUPPLY HAVE BEEN GROWING COMMODITY PRICES APPEAR TO BE TURNING UP AND LONGTERM INTEREST RATES HAVE RISEN LATELY 9312080063 931208 BUSINESS BRIEF STRATUS COMPUTER INC ACQUISITION OF ISIS DISTRIBUTED AGREED UPON FOR 24 MILLION STRATUS COMPUTER INC SAID IT AGREED TO BUY ISIS DISTRIBUTED SYSTEMS INC A CLOSELY HELD ITHACA NY SOFTWARE COMPANY FOR 24 MILLION IN CASH AND STRATUS STOCK ISIS WHICH WILL HAVE SALES OF UNDER 3 MILLION THIS YEAR HAS DEVELOPED TECHNOLOGY FOR ENSURING RELIABILITY OF COMPUTER PROGRAMS THAT INVOLVE NUMEROUS COMPUTERS ON NETWORKS STRATUS OF MARLBOROUGH MASS MAKES LARGE FAULTTOLERANT COMPUTERS THAT CONTINUE OPERATING EVEN IF PARTS BREAK RECENTLY IT STARTED ACQUIRING SOFTWARE COMPANIES IN AN EFFORT TO EXPAND ITS SLOWING GROWTH PAUL R JONES FORMERLY STRATUS'S VICE PRESIDENT ENGINEERING WILL HEAD THE NEW UNIT HE SAID STRATUS'S WELLKNOWN NAME AND LARGE SALES AND SERVICE ORGANIZATION SHOULD HELP ISIS EXPAND RAPIDLY BEYOND ITS CURRENT BASE OF 75 CUSTOMERS WHICH INCLUDES THE NEW YORK STOCK EXCHANGE AND OTHER FINANCIAL INSTITUTIONS 9312080062 931208 FINANCING BUSINESS LEAR SEATING CORP LEAR SEATING CORP SOUTHFIELD MICH SAID IT IS OFFERING 145 MILLION OF SUBORDINATED DEBENTURES DUE 2002 PROCEEDS WILL BE USED TO REDEEM 14 SENIOR SUBORDINATED DEBENTURES OUTSTANDING DUE 2000 LEHMAN BROTHERS IS THE LEAD UNDERWRITER FOR THE OFFERING THE MAKER OF AUTOMOBILE SEATS SAID 9312080060 931208 BUSINESS BRIEF F N WOLF & CO NASD PANEL RECOMMENDS FINE TOTALING 22 MILLION A NATIONAL ASSOCIATION OF SECURITIES DEALERS REGIONAL COMMITTEE HAS RECOMMENDED A 22 MILLION FINE AGAINST BROKERAGE FIRM F N WOLF & CO AND SUSPENSION OF THREE PRINCIPALS BECAUSE OF ALLEGED SECURITIES VIOLATIONS NASDAQ'S ATLANTA REGIONAL COMMITTEE URGED ONE TO TWOYEAR SUSPENSIONS FOR FRANKLIN WOLF THE FIRM'S PRESIDENT AND PRINCIPALS RICHARD SULLIVAN AND JAMES PETRANTIS MR WOLF DIDN'T RETURN CALLS MR SULLIVAN DECLINED TO COMMENT AND MR PETRANTIS COULDN'T BE REACHED THE RECOMMENDED PENALTIES STEM FROM ALLEGED VIOLATIONS AT F N WOLF WHILE THE FIRM SOLD STOCK IN TREATS INTERNATIONAL ENTERPRISES INC A CANADIAN FOOD COMPANY A LAWYER REPRESENTING F N WOLF SAID THE FIRM HAS ALREADY APPEALED THE PENALTIES WHICH WILL BE STAYED UNTIL THE APPEALS PROCESS IS EXHAUSTED A SPOKESMAN FOR NASDAQ WOULD NEITHER CONFIRM NOR DENY THE RECOMMENDED PENALTIES OR VIOLATIONS STEMMING FROM THE ATLANTA OFFICE'S FINDINGS AN F N WOLF OFFICIAL CONFIRMED DETAILS OF THE FINDINGS 9312080059 931208 REGULATORY CHOKEHOLD REFORM PENSION REFORM BY ALVIN D LURIE ERISA HAS BEEN ALMOST TOTALLY REFORMED BY AMENDMENTS MODIFICATIONS ADDITIONS REVISIONS OF ADDITIONS AND CONTRACTION OF BENEFITS ARE PENSIONS TODAY STRONGER FOR IT IF YOU WEIGH THE BROADER COVERAGE AND LARGER BENEFITS OF THOSE WHOSE PLANS HAVE SURVIVED AGAINST THE LOST PENSIONS OF THOSE WHOSE EMPLOYERS HAVE SIMPLY GIVEN UP ON THEIR PLANS THAT IS NOT AN EASY CALL TAKE SOMETHING AS SIMPLE AS WHAT THE ESTIMATED 43 MILLION PEOPLE IN PRIVATE PENSION PLANS CAN DO WITH THEIR MONEY WHEN THEY LEAVE A PLAN THE MERE LISTING OF THE RULES IN THIS AREA ALONE LET ALONE A DESCRIPTION OF THE ACTUAL RULES BOGGLES THE MIND ROLLOVERS PLANTOPLAN TRANSFERS SPECIAL SPOUSAL RIGHTS AND WAIVERS LUMPSUM DISTRIBUTIONS 10YEAR AVERAGING EXCISE TAXES ON NONGRANDFATHERED DISTRIBUTIONS ESTATE TAX EXCLUSIONS INCIDENTAL DEATH BENEFITS FIVEYEAR DISTRIBUTIONS NOT TO BE CONFUSED WITH FIVEYEAR PARTICIPATION OR FIVEYEAR AVERAGING TO MENTION JUST A FEW OF THE MORE THAN 60 SEPARATE TAX RULES ALL OF WHICH MUST BE JUGGLED AND MELDED TO ARRIVE AT A SATISFACTORY COURSE OF ACTION REGULATORY OVERSIGHT UNDER ERISA FALLS PRINCIPALLY IN THE HANDS OF THREE SEPARATE GOVERNMENT AGENCIES THE INTERNAL REVENUE SERVICE THE LABOR DEPARTMENT AND THE PENSION BENEFIT GUARANTY CORP MANY OTHERS HAVE LESSER RESPONSIBILITIES SUCH AS THE SECURITIES AND EXCHANGE COMMISSION THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION AND THE SOCIAL SECURITY ADMINISTRATION EACH OF THESE AGENCIES IS ANSWERABLE TO OVERSIGHT COMMITTEES IN THE SENATE AND THE HOUSE JEALOUS OF THEIR JURISDICTION AND THAT HAS LED TO SCORES OF AMENDMENTS OF ERISA RESULTING IN MASSIVE RULE CHANGES EVERY NEW CONGRESSIONAL BILL PRODUCES ITS OWN SLEW OF NEW REGULATIONS EXAMPLE THE TAX REFORM ACT OF 1986 GAVE RISE TO MORE THAN 600 PAGES OF NEW PENSION REGULATIONS THESE EVOKED SUCH HOWLS FROM THE PENSION COMMUNITY THAT THEY HAD TO BE WITHDRAWN AND REPROPOSED ON SEVERAL OCCASIONS AND ONLY BECAME FINAL WITH SOME SIMPLIFICATIONS SEVERAL MONTHS AGO SOME SEVEN YEARS LATER CHANGES IN THE PENSION RULES HAVE NECESSITATED REPEATED AMENDMENTS OF INDIVIDUAL PLANS PLAN AMENDMENTS IN TURN BRING A NEW ROUND OF LEGAL ACTUARIAL AND CONSULTANT FEES IT HAS BEEN ESTIMATED THAT THE COST TO EMPLOYERS FOR CONTINUAL PLAN UPDATES HAS APPROACHED 100 BILLION IN THE POSTERISA YEARS THE FEES PAID TO PROFESSIONALS TO ACHIEVE COMPLIANCE HAVE BEEN ESTIMATED IN A STUDY COMMISSIONED BY THE PENSION BENEFIT GUARANTY CORP TO AVERAGE 5364 PER PARTICIPANT FOR LARGECOMPANY PLANS AND 45545 FOR SMALL PLANS ONE MUST NOT ASSUME FROM ALL THIS THAT MOST PENSION PLANS ACTUALLY COMPLY WITH THE RULES NOT IN THE LEAST THERE WAS AND CONTINUES TO BE MASSIVE NONCOMPLIANCE ONE CAN HARDLY EXPECT ADHERENCE TO RULES THAT EVEN EXPERTS CANNOT UNDERSTAND WE ARE REALLY LARGELY OPERATING WITH TWO BODIES OF LAW THE OFFICIAL AND THE VULGATE WITH THE LATTER PREDOMINATING BECAUSE OF THE INCOMPREHENSIBILITY OF THE FORMER IF THERE IS ONE WORD THAT EVERYONE CAN AGREE CHARACTERIZES PENSION REFORM IT IS OVERKILL THE RULES HAVE SIGNIFICANTLY HALTED THE GROWTH AND ALTERED THE DESIGN OF PENSION PLANS FORCING MANY EMPLOYERS TO DROP TRADITIONAL PLANS AND IF NOT TO ABANDON SUCH FRINGE BENEFITS ALTOGETHER SWITCH TO PROFITSHARING 401K AND SIMPLIFIED EMPLOYEE PENSION DESIGNS WHERE THE RULES ARE SIMPLER TO SATISFY AND NO INSURANCE PREMIUMS ARE EXACTED ONE INDICATION OF CORPORATE FRUSTRATION WITH TRADITIONAL PENSION PLANS COMES FROM DATA SHOWING THAT FOR THE 12MONTH PERIOD ENDED SEPT 30 1992 10064 DEFINEDBENEFIT PLANS AND 11629 DEFINEDCONTRIBUTION PLANS WERE TERMINATED BY EMPLOYERS THESE WERE ONLY PARTIALLY OFFSET BY 370 NEW DEFINEDBENEFIT PLANS AND 11853 NEW DEFINEDCONTRIBUTION PLANS MANY OF THE LATTER BEING 401K PLANS WHERE THE EMPLOYEE CONTRIBUTES MUCH IF NOT ALL OF THE FUNDING A STUDY RECENTLY RELEASED BY TWO ECONOMISTS FROM COLUMBIA AND HARVARD HAS FOUND THAT THE PORTION OF AMERICA'S WORK FORCE ACTUALLY COVERED BY ANY COMPANY RETIREMENT PLAN IS SHRINKING AT A RAPID RATE DOWN TO 43 FROM 49 ONLY A DECADE AGO THERE HAVE BEEN MANY EFFORTS TO SIMPLIFY ERISA SINCE ITS INCEPTION BUT THE PALTRY RESULTS TO DATE ARE GREATLY OVERSHADOWED BY THE CONTINUAL COMPLICATIONS THAT HAVE BEEN ADDED THE CLINTON ADMINISTRATION NOT DAUNTED BY THE SISYPHEAN TASK IT WILL FACE IN ACHIEVING HEALTH REFORM HAS JUST RECENTLY ANNOUNCED PROPOSED FARREACHING FURTHER CHANGES IN THE PENSION LAWS IT MUST NOT BE TAKEN AS A GIVEN THAT THE PRIVATE PENSION MOVEMENT WHICH IN JUST THE 40 YEARS FOLLOWING WORLD WAR II AMASSED CLOSE TO 3 TRILLION IN PENSION ASSETS WILL JUST KEEP PAYING THE PIPER THE INCREASING NUMBER OF PLAN TERMINATIONS IS A CLEAR SIGN THAT THE SYSTEM IS BUCKLING UNDER ITS REGULATORY WEIGHT THE MONUMENTAL NEW BURDENS ON EMPLOYERS OF COPING WITH HEALTH REFORM WOULD SURELY BE ENOUGH TO PRECIPITATE MATTERS OF COURSE THE GOVERNMENT COULD THEN MANDATE PENSIONS FOR ALL EMPLOYERS BUT THAT WILL NOT WORK UNLESS IT ALSO MANDATES THAT AN EMPLOYER KEEP CONTRIBUTING TO ITS PLAN EVEN IF DRIVEN OUT OF BUSINESS BY ITS COSTS A MORE REALISTIC SOLUTION WOULD BE A MASSIVE REFORM OF PENSION REFORMAND OF THE CLINTON HEALTH REFORM AS WELL A GUIDING PRINCIPLE FOR BOTH COULD BE DO NOT SEE HOW MANY REGULATORS CAN DANCE ON THE HEADS OF THE REGULATED MR LURIE AN ATTORNEY IN NEW YORK WAS THE FIRST ASSISTANT COMMISSIONER OF INTERNAL REVENUE IN CHARGE OF ADMINISTERING ERISA 9312080058 931208 INTERNATIONAL BOEING WINS JET ORDER VALUED AT 500 MILLION SEATTLE BOEING CO IS EXPECTED TO ANNOUNCE TODAY AN ORDER FOR AIRLINERS VALUED AT MORE THAN 500 MILLION FROM INTERNATIONAL LEASE FINANCE CORP INCLUDING THE MANUFACTURER'S FIRST ORDER THIS YEAR FOR A 747 JUMBO JET THE ORDER WAS CONFIRMED BY PEOPLE FAMILIAR WITH THE AGREEMENT WHILE THEY PROVIDED NO DETAILED BREAKDOWN OF OTHER AIRCRAFT TYPES IN THE ORDER IT IS ALSO SAID TO INCLUDE A HANDFUL OF LARGER TWINENGINE MODEL 767300 AND 757200 AIRLINERS THE SINGLE 747400 INCLUDED IN THE SALE IS VALUED AT 140 MILLION TO 165 MILLION ON BOEING PRICE LISTS AMID A SEVERE DOWNTURN IN AIRCRAFT ORDERS FROM STRUGGLING AIRLINES PROSPERING INTERNATIONAL LEASE FINANCE HAS EMERGED IN THE LAST FEW YEARS AS A STRONG BOEING CUSTOMER THE BEVERLY HILLS CALIF LEASING COMPANY IS A UNIT OF NEW YORKBASED INSURANCE CONCERN AMERICAN INTERNATIONAL GROUP INC 9312080057 931208 INTERNATIONAL FRANCE IS GETTING WHAT IT WANTS BY TAKING HARD LINE ON GATT US YIELDS ON FARM ACCORD AND ACCEPTS DEMANDS FOR ENFORCEMENT GROUP BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRENCH STUBBORNNESS OVER THE GATT WORLDTRADE TALKS IS STARTING TO PAY OFF AN OVERALL TRADE ACCORD ACCEPTABLE TO THE EUROPEAN COMMUNITY THE US AND THE REST OF THE WORLD STILL IS FAR FROM COMPLETE BUT PARIS WHICH HAS TAKEN A RISKY HARDLINE STANCE OVER AN AGREEMENT AND STILL REMAINS OFFICIALLY CAUTIOUS ABOUT THE CHANCES OF A DEAL IS UNMISTAKABLY FEELING RELIEF BACKED INTO WHAT SEEMED AN IMPOSSIBLE POSITION JUST WEEKS AGO FRANCE IS NOW WINNING ACCEPTANCE OF SOME OF ITS KEY POSITIONS THE MOST IMPORTANT BREAKTHROUGH CAME THIS WEEK WITH A NEW ECUS COMPROMISE OVER AGRICULTURE THE ISSUE THAT HAD LONG THREATENED TO DERAIL THE SOCALLED URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN EFFECT THE US HAS SHIFTED ITS POSITION RENEGOTIATING A PREVIOUS FARM ACCORD WITH THE EC THAT FRANCE HAD DEEMED UNACCEPTABLE AND THAT WASHINGTON HAD SAID WASN'T TO BE TOUCHED SPEAKING WITH SOME SATISFACTION I CAN SAY WE HAVE SERIOUSLY ADVANCED MATTERS JEAN PUECH THE FRENCH AGRICULTURE MINISTER TOLD REPORTERS FRANCE HAS ALSO APPARENTLY WON US ACCEPTANCE OF ANOTHER OF ITS DEMANDS THE ESTABLISHMENT OF A NEW WORLDTRADE ORGANIZATION THAT WOULD ENSURE FAIR PLAY AND IT HAS SUCCESSFULLY TURNED SOME DISPUTES WITH THE US INCLUDING THE ONE OVER AGRICULTURE INTO MATTERS THAT NOW NEED ONLY BE RESOLVED WITH ITS EC PARTNERS GERMANY BRITAIN AND SOME OF ITS OTHER PARTNERS ARE SO ANXIOUS FOR A GATT AGREEMENT FRANCE CALCULATES THAT THEY WILL BE FAR EASIER TO MANIPULATE THAN WASHINGTON IN PARTICULAR PARIS IS SEEKING TO PERSUADE ITS PARTNERS TO COMPENSATE ITS FARMERS FOR ANY LOSSES THEY MIGHT INCUR IT IS ALSO DEMANDING THAT THE EC ARM ITSELF WITH TOUGH TRADERETALIATION MEASURES IF WASHINGTON INSISTS ON KEEPING ITS OWN WEAPONS UNTIL NOW BRITAIN AND GERMANY HAVE REJECTED SUCH PROPOSALS FEARING THAT NEW RETALIATORY MEASURES GO AGAINST THE SPIRIT OF GATT BY LEADING TO MORE PROTECTIONISM NOT LESS PARIS STILL HAS SOME WAY TO GO BEFORE IT CAN CROW VICTORY FOR ONE THING IT STILL ISN'T CLEAR THAT THERE WILL BE A FINAL ACCORD ONE BIG REMAINING STICKING POINT WITH THE US IS THE FRENCH DEMAND TO EXEMPT CULTURE FROM FREE TRADE IN SERVICES NONETHELESS THE CONSERVATIVE FRENCH GOVERNMENT OF EDOUARD BALLADUR HAS MADE SUBSTANTIAL HEADWAY BY STICKING TO THE TOUGH POSITIONS IT FIRST ANNOUNCED LAST MAY UNTIL THE RECENT BREAKTHROUGHS PARIS SEEMED STUCK IN A DEAD END WITH EVEN MR BALLADUR TALKING ABOUT BEING CAUGHT IN A TRAP REJECTING A GATT ACCORD OUTRIGHT WOULD ISOLATE FRANCE HARM ITS ECONOMY AND CAUSE HAVOC WITH ITS EC PARTNERS BUT ACCEPTING AN AGREEMENT THAT SEEMED TO JEOPARDIZE ITS FARMERS WOULD HAVE BEEN AGAINST FRENCH NATIONAL INTERESTS MR BALLADUR ARGUED LURKING IN THE BACKGROUND WAS ALSO THE FEAR OF A MODERNDAY PEASANT'S REVOLT THAT COULD SPARK MASS SOCIAL UNREST IN RECESSIONHIT FRANCE EVEN NOW THERE ARE SUBSTANTIAL WORRIES ABOUT THE POSITION FRANCE HAS TAKEN IN COMMENTS THAT CAUSED AN UPROAR VALERY GISCARD D'ESTAING THE FORMER FRENCH PRESIDENT WARNED LAST WEEK THAT IF THERE IS A FAILURE AND EVEN IF THE RESPONSIBILITY LIES ELSEWHERE IT WILL BE FRANCE THAT WILL BE BLAMED BEHIND THE SCENES TOO MR BALLADUR HAS BEEN CAUGHT IN A DOMESTIC POLITICAL TRAP MR GISCARD D'ESTAING HEADS ONE FACTION IN HIS GOVERNMENT THAT STRONGLY FAVORS A GATT AGREEMENT ARGUING THAT FRANCE AS A MAJOR EXPORTER OF GOODS AND SERVICES WOULD LOSE HEAVILY IF NO DEAL WAS DONE BUT THE GAULLIST CONSERVATIVE FACTION TO WHICH MR BALLADUR HIMSELF BELONGS STILL HAS DEEPSEATED PROTECTIONIST INSTINCTS AND HAS BEEN FAR MORE GUARDED ABOUT THE MERITS OF A GATT AGREEMENT IF NOT DOWNRIGHT HOSTILE TREADING CAUTIOUSLY MR BALLADUR FIRST SOUGHT TO BROADEN THE FRENCH POSITION SHIFTING THE FOCUS AWAY FROM THE SOLE ISSUE OF AGRICULTURE TO A MORE COMPREHENSIVE LIST OF DEMANDS HE THEN EMBARKED ON INTENSIVE NEGOTIATIONS WITH FRANCE'S EC PARTNERS TRYING TO CAPITALIZE ON ANY DOUBTS ABOUT GATT THEY MIGHT HAVE MOST RECENTLY HE HAS SOUGHT TO ASSUAGE THE NATION'S FARMERS BY ANNOUNCING THIS MONTH THAT THEY WILL RECEIVE FRESH SUBSIDIES OF 15 BILLION FRANCS 257 MILLION IN FRANCE SUCH MANEUVERING HAS CREATED A CLIMATE OF POLITICAL CORRECTNESS IN WHICH IT WAS HARD UNTIL RECENTLY EVEN FOR GATT ADVOCATES TO SPEAK OUT IN FAVOR OF AN ACCORD BUSINESS EXECUTIVES FOR THE MOST PART HAVE HELD THEIR TONGUES WHILE THE MEDIA HAVE PRINTED DIATRIBES AGAINST PURPORTED US HEGEMONY ONE MAGAZINE L'EXPRESS RAN A COVER WITH A PICTURE OF A DINOSAUR RAGING OVER PARIS AND THE HEADLINE CULTURE THE AMERICAN ASSAULT BUT THIS APPROACH EXACERBATED A GROWING RIFT WITH FRANCE'S MOST IMPORTANT PARTNER GERMANY WHOSE EXPORT INDUSTRIES STAND TO GAIN MUCH FROM FREER ACCESS TO INTERNATIONAL MARKETS SO ENLISTING THE SUPPORT OF PRESIDENT FRANCOIS MITTERRAND MR BALLADUR SOUGHT TO PERSUADE GERMAN CHANCELLOR HELMUT KOHL THAT FRANCOGERMAN RELATIONS WERE JUST AS IMPORTANT AS A NEW TRADE ACCORD THE ARGUMENT APPEARS TO HAVE BEEN PERSUASIVE AFTER SEVERAL ROUNDS OF TOPLEVEL MEETINGS AN AIDE TO MR MITTERRAND SAID LAST WEEK THAT EUROPEAN COHESION IS SOLID KOHL TOLD US CLEARLY THAT HE IS BOTH EUROPEAN AND PROGATT HE WANTS AN ACCORD AND TO AVOID A EUROPEAN CRISIS AT THE SAME TIME A CARTOON IN THE DAILY LIBERATION THIS WEEK SHOWED MR BALLADUR IN HIS BEDROOM TWISTING AND TURNING HIS ARMS AND LEGS INTO EVER MORE CONTORTED POSITIONS WHEN HIS WIFE ASKS WHY HE REPLIES I'M TRYING TO FIND A WAY TO SIGN THE GATT AGREEMENT WITHOUT APPEARING TO WANT TO 9312080056 931208 BUSINESS BRIEF SOFTWARE HOLDINGS INC UNIT FINISHES TENDER OFFER TO BUY CORPORATE SOFTWARE CS ACQUISITION CORP SAID IT COMPLETED ITS TENDER OFFER TO PURCHASE FOR CASH ALL COMMON SHARES OUTSTANDING OF CORPORATE SOFTWARE INC FOR 15 A SHARE THE ACQUISITION COMPANY WHICH INCLUDES CORPORATE SOFTWARE MANAGEMENT AND OUTSIDE INVESTORS SAID 4402199 SHARES HAD BEEN TENDERED VALIDLY AND NOT WITHDRAWN REPRESENTING ABOUT 70 OF THE SHARES OUTSTANDING WHICH EXCEEDS THE MINIMUM CONDITION CS ACQUISITION SAID IT WILL BEGIN PAYING FOR VALIDLY TENDERED SHARES AS SOON AS PRACTICABLE CS ACQUISITION ALSO ANNOUNCED THAT ITS PARENT COMPANY SOFTWARE HOLDINGS INC WILL ACQUIRE FROM CERTAIN MEMBERS OF CORPORATE SOFTWARE'S MANAGEMENT 237759 SHARES OF CORPORATE SOFTWARE COMMON STOCK IN EXCHANGE FOR AN EQUITY INVESTMENT IN SOFTWARE HOLDINGS CS ACQUISITION FORMERLY GARDEN ACQUISITION CORP WAS ORGANIZED BY INFORMATION PARTNERS INC AND BAIN CAPITAL INC BOTH BASED IN BOSTON IN COOPERATION WITH MANAGEMENT OF CORPORATE SOFTWARE TO PURCHASE ALL SHARES OUTSTANDING OF CORPORATE SOFTWARE A CANTON MASS SOFTWARESERVICES CONCERN 9312080055 931208 ABREAST OF THE MARKET STOCKS SET RECORD AT 371888 AIDED BY GAINS IN A VARIETY OF CYCLICALS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE PLODDED TO A NEW HIGH HELPED BY GAINS IN A BROAD ARRAY OF CYCLICAL STOCKS THE INDEX OF 30 BLUECHIP STOCKS ROSE 867 POINTS TO 371888 SURPASSING ITS OLD RECORD OF 371077 SET NOV 16 STANDARD & POOR'S 500STOCK INDEX EDGED UP 033 TO 46676 BUT THE NASDAQ COMPOSITE INDEX EASED 174 TO 76935 EVEN SOME LAGGING SPECIALIZED STOCK MARKET INDEXES GAINED GROUND THE DOW JONES UTILITY AVERAGE WHICH MANY ANALYSTS CONSIDER A LEADING INDICATOR OF INTEREST RATES SURGED 171 POINTS TO 22752 ADVANCING FOR THE SECOND STRAIGHT DAY THIS WEEK VOLUME ON THE NEW YORK STOCK EXCHANGE FELL TO 277 MILLION SHARES FROM 292 MILLION SHARES MONDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1053 TO 999 STOCKS CLIMBED IN SPITE OF A REPORT FROM JOHNSON REDBOOK THAT SHOWED SALES AT THE NATION'S RETAILERS FALLING A SEASONALLY ADJUSTED 22 IN THE FIRST WEEK OF DECEMBER FROM NOVEMBER THE REPORT ALSO NOTED THAT SALES IN THE FIRST WEEK OF DECEMBER CLIMBED 65 FROM THE YEARAGO PERIOD THOUGH THE REPORT SEEMED TO CONTRADICT RECENT EVIDENCE THAT THE ECONOMY IS IMPROVING SOME ECONOMISTS SAID THAT ISN'T NECESSARILY THE CASE JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG SAID THAT THE JOHNSON REDBOOK DATA WERE SKEWED BECAUSE THEY COMPARE THE SALES FOR THE FIRST WEEK OF DECEMBER WITH THE SALES RATE FOR ALL OF DECEMBER 1992 AND SINCE SALES LAST DECEMBER STARTED AT A CRAWL BUT PICKED UP SIGNIFICANTLY NEAR CHRISTMASTIME THE DATA CAN BE MISLEADING IT'S NOT USUALLY A PROBLEM EXCEPT WHEN WE KNOW SALES ARE GOING TO BE HEAVILY WEIGHTED TOWARD THE LAST WEEKS OF THE MONTH AS WAS THE CASE LAST DECEMBER AND IS LIKELY TO BE THE CASE THIS DECEMBER SAID MR LIRO DESPITE THE AMBIGUITY MANY RETAIL STOCKS SLIPPED ON THE NEWS DAYTON HUDSON LOST 1 TO 69 5/8 DILLARD DEPARTMENT STORES 1/8 TO 40 1/4 MAY DEPARTMENT STORES 1/4 TO 42 1/8 AND WALMART STORES 3/8 TO 27 5/8 BUT SEARS ROEBUCK A COMPONENT OF THE DOW ADVANCED SMARTLY RISING 2 1/8 TO 54 1/4 AFTER SLUMPING THE PREVIOUS DAY A GAIN IN OIL PRICES PUSHED OIL STOCKS HIGHER AND BOOSTED THE DOW INDUSTRIALS CHEVRON ADDED 3/8 TO 87 AND TEXACO EDGED UP 3/8 TO 62 7/8 BOTH STOCKS ARE COMPONENTS OF THE DOW RJR NABISCO WAS ONE OF THE MOST HEAVILY TRADED STOCKS ON THE BIG BOARD RALLYING 1/4 TO 6 1/2 THE FOOD AND TOBACCO GIANT SAID IT WILL TAKE A FOURTHQUARTER RESTRUCTURING CHARGE OF 445 MILLION MOSTLY TO COVER A 6000PERSON REDUCTION IN EMPLOYEES BOEING SURGED 2 1/8 TO 41 SALOMON BROTHERS RAISED ITS RATING ON BOEING TO BUY FROM HOLD BROWNINGFERRIS INCREASED 1 3/8 TO 27 1/4 AND WMX TECHNOLOGIES GAINED 1 5/8 TO 27 1/2 INVESTORS WERE REPORTEDLY SPECULATING THAT ENVIRONMENTALSERVICE COMPANIES WILL MAKE UPBEAT COMMENTS AT A GOLDMAN SACHS INVESTMENT CONFERENCE TODAY SEPARATELY A PRUDENTIAL SECURITIES ANALYST MADE POSITIVE REMARKS ABOUT BOTH STOCKS XEROX DROPPED 1 1/4 TO 80 3/4 THE PHOTOCOPYING CONCERN AGREED TO A 225 MILLION SETTLEMENT OF A CLASSACTION ANTITRUST SUIT ALLEGING THAT IT SUPPRESSED COMPETITION IN THE SALE AND SERVICE OF HIGHVOLUME PHOTOCOPIERS DEERE PLUNGED 3 3/8 TO 70 3/8 IN SPITE OF POSTING SHARPLY HIGHER EARNINGS IN THE FOURTH QUARTER AFTER THE PROFIT REPORT SMITH BARNEY SHEARSON ANALYST TOBIAS LEVKOVICH DOWNGRADED DEERE TO NEUTRAL FROM OUTPERFORM MR LEVKOVICH LOWERED HIS EARNINGS ESTIMATE FOR FISCAL 1994 TO 475 A SHARE FROM 525 AMR SOARED 1 5/8 TO 67 1/2 THE GAINS CAME EVEN AS ITS AMERICAN AIRLINES SUBSIDIARY SAID THAT THE PRETHANKSGIVING DAY STRIKE BY ITS FLIGHT ATTENDANTS UNION WILL REDUCE AFTERTAX PROFIT BY MORE THAN 160 MILLION AS A RESULT AMERICAN SAID AMR WILL REPORT A SIGNIFICANT LOSS FOR THE FOURTH QUARTER AND A LOSS FOR THE YEAR GERBER PRODUCTS TUMBLED 1 5/8 TO 26 5/8 GOLDMAN SACHS DOWNGRADED THE STOCK TO MARKET UNDERPERFORMER FROM MARKET PERFORMER SYNOPTICS COMMUNICATIONS SANK 1 TO 24 3/4 ON NASDAQ DONALDSON LUFKIN & JENRETTE LOWERED ITS INVESTMENT RATING OF THE STOCK TO MODERATELY ATTRACTIVE FROM VERY ATTRACTIVE SHARES OF SOME TELEPHONE COMPANIES EASED AFTER THE WALL STREET JOURNAL REPORTED THAT AMERITECH IS SEEKING TO ENTER THE LONGDISTANCE MARKET SPRINT LOST 7/8 TO 32 3/8 AND ON NASDAQ MCI COMMUNICATIONS FELL 3/8 TO 25 ST JUDE MEDICAL SLID 7/8 TO 27 3/4 THE COMPANY AGREED TO BUY ELECTROMEDICS FOR 90 MILLION IN CASH AND STOCK WHIRLPOOL SLIPPED 1/8 TO 61 1/2 THE COMPANY SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SELL ITS ITALIAN REFRIGERATORCOMPRESSOR BUSINESS TO EMBRACO SA FOR 106 MILLION BAXTER INTERNATIONAL CLIMBED 1/4 TO 22 3/4 THE COMPANY'S BAXTER HEALTHCARE UNIT ENTERED INTO A DISTRIBUTION ALLIANCE WITH CATHOLIC HEALTHCARE WEST THAT WILL GENERATE 250 MILLION IN MEDICAL SUPPLY PURCHASES OVER FIVE YEARS 9312080054 931208 BUSINESS BRIEF WHIRLPOOL CORP EMBRACO AGREES TO ACQUIRE COMPRESSOR BUSINESS IN ITALY WHIRLPOOL CORP SAID IT AGREED TO SELL ITS ITALIAN REFRIGERATORCOMPRESSOR BUSINESS TO EMBRACO SA A BRAZILIAN COMPANY IN WHICH IT HOLDS A MINORITY STAKE FOR 106 MILLION THE BENTON HARBOR MICH MAKER OF MAJOR HOME APPLIANCES SAID THE TRANSACTION INVOLVES A FACILITY IN RIVA DI CHIERI ITALY WHICH MAKES ASPERA BRAND COMPRESSORS AND A FIVEYEAR AGREEMENT TO PROVIDE COMPRESSORS TO WHIRLPOOL EUROPE RIVA DI CHIERI ALSO SUPPLIES COMPRESSORS TO MANY NONWHIRLPOOL CUSTOMERS PRIMARILY IN EUROPE WHIRLPOOL SAID THE MOVE WOULD ENABLE IT AND EMBRACO TO MAKE MORE EFFECTIVE USE OF THEIR NOW SEPARATE COMPRESSORMANUFACTURING CAPABILITIES AND BROADBASED TECHNOLOGIES EMBRACO CURRENTLY MAKES COMPRESSORS AT A PLANT IN JOINVILLE BRAZIL WHIRLPOOL SAID THE TRANSACTION WHICH IS SUBJECT TO SETTLEMENT ADJUSTMENTS AT CLOSING HAS BEEN APPROVED BY THE BOARDS OF BOTH COMPANIES AND IS PENDING GOVERNMENT APPROVAL 9312080053 931208 BUSINESS BRIEF CANDELA LASER CORP DORNBUSH GROUP OF INVESTORS SEEK TO INCREASE SIZE OF BOARD ROBERT EARL DORNBUSH AND KIRK TERRY DORNBUSH OF THE SAN FRANCISCO INVESTMENT FIRM DORNBUSH GROUP INC ASKED CANDELA LASER CORP TO INCREASE THE SIZE OF ITS BOARD OF DIRECTORS TO SIX FROM FOUR IN A DEC 6 LETTER TO CANDELA LASER'S CHAIRMAN KENNETH D ROBERTS ROBERT DORNBUSH ASKED THAT HE AND AN INDIVIDUAL HE DESIGNATES BE ELECTED TO THE PROPOSED NEW BOARD SEATS IN THE LETTER WHICH ACCOMPANIED A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR DORNBUSH CITED AN IMMEDIATE NEED FOR INDIVIDUALS WHO BRING DIFFERENT PERSPECTIVES AND NEW STRENGTHS TO CANDELA'S BOARD CANDELA A WAYLAND MASS MEDICAL LASER DEVELOPER HAD NO COMMENT SAID VICE PRESIDENT RICHARD OLSEN THE DORNBUSH GROUP HOLDS 410220 COMMON SHARES OR A 79 STAKE IN THE COMPANY ACCORDING TO THEIR LAST SEC FILING 9312080052 931208 REVIEW & OUTLOOK EDITORIAL SOVEREIGN IMPUNITY THE STATE DEPARTMENT SAYS IT'S CRACKING DOWN ON DIPLOMATS WHO REFUSE TO PAY TRAFFIC TICKETS SO IT SURE SEEMS STRANGE THAT STATE SHOULD EVEN THINK ABOUT GRANTING IMMUNITY TO A MAN LINKED TO THE BIGGEST BANK HEIST IN HISTORY YET SOVEREIGN IMMUNITY IS EXACTLY WHAT THE LAWYERS FOR SHEIK ZAYED BIN SULTAN ALNAHYAN THE MONARCH OF ABU DHABI ARE ASKING FROM THE CLINTON ADMINISTRATION REMEMBER THE BANK OF CREDIT & COMMERCE INTERNATIONAL OR BCCI THAT'S THE CORRUPT BANKING EMPIRE THAT BILKED DEPOSITORS AROUND THE GLOBE OF BILLIONS OF DOLLARS YET ITS FULL STORY REMAINS A MYSTERY THE SHEIK IS BEING SUED IN AN AMERICAN COURT FOR 15 BILLION FOR ACTIONS RELATED TO BCCI A SUIT THAT AN IMMUNITY GRANT WOULD WIPE OUT IN THE ANNALS OF DIPLOMACY THE SHEIK'S REQUEST MAY RETIRE THE PRIZE FOR CHUTZPAH THIS LEGAL PLOY MIGHT ALSO BE LAUGHED OUT OF TOWN SAVE FOR THE CLOUT OF HIS LAWYERS SHEIK ZAYED IS REPRESENTED BY PATTON BOGGS & BLOW THE FORMER FIRM OF WASHINGTON INFLUENCE BROKER AND NOW COMMERCE SECRETARY RON BROWN ACCORDING TO A SURVEY OF FILINGS MADE UNDER THE FOREIGN AGENT REGISTRATION ACT THE SHEIK PAYS THE FIRM WELL FOR ITS INFLUENCE FROM MARCH 1991 TO JUNE 1993 PATTON BOGGS RECEIVED 117 MILLION FROM THE ABU DHABI GOVERNMENT OR THE ABU DHABI INVESTMENT AUTHORITY IN A SIMILAR ROUGHLY TWOYEAR PERIOD ABU DHABI ALSO PAID MORE THAN 3 MILLION TO ROBINSON LAKE LERER & MONTGOMERY FOR PUBLIC RELATIONS DESPITE THESE FEES FOR IMAGEHELP BOTH FIRMS HAVE KEPT QUIET ABOUT THE SHEIK'S SOVEREIGNIMMUNITY REQUEST THIS LACK OF ATTENTION WILL CHANGE THIS WEEK HOWEVER WHEN HOUSE BANKING CHAIRMAN HENRY GONZALEZ HOLDS A HEARING ON THE MATTER HE'S RESPONDING TO A REQUEST BY HARRY ALBRIGHT THE TRUSTEE FOR FIRST AMERICAN A US BANK THAT TURNED OUT TO HAVE BEEN A SECRET BCCI SUBSIDIARY IN A LETTER TO MR ALBRIGHT CHAIRMAN GONZALEZ SAID IT WOULD BE A TERRIBLE PRECEDENT TO ALLOW A GRANT OF IMMUNITY TO A PERSON ENGAGED IN NEFARIOUS BANKING ACTIVITIES IN THE UNITED STATES SOVEREIGN IMMUNITY IS OF COURSE A WELLKNOWN LEGAL PRINCIPLE BUT IT HAS TRADITIONALLY BEEN RESERVED FOR ACTS OF STATE NOT OF PRIVATE COMMERCE THE LAWYERS WE'VE ASKED SAY STATE HAS NEVER GRANTED THE ABSOLUTE IMMUNITY IN US COURTS FOR BOTH CIVIL AND CRIMINAL MATTERS THAT THE SHEIK NOW WANTS ESPECIALLY SINCE THE SHEIK HIMSELF IS SUING IN A US COURT TO COLLECT SOME 280 MILLION FROM FIRST AMERICAN BANK SHEIK ZAYED WANTS TO USE AMERICAN LAW WHEN IT SERVES HIS INTERESTS BUT BE IMMUNE FROM IT WHEN SOMEONE HAS A CLAIM ON HIM THE SHEIK'S HIRED GUNS HAVE BEEN ARGUING IN RESPONSE TO ANYONE WHO RAISES QUESTIONS ABOUT HIS ROLE THAT HE IS JUST ANOTHER VICTIM OF BCCI YET HIS CASE WOULD BE MORE CREDIBLE IF HIS AGENTS HADN'T PACKED A PLANE FULL OF CRITICAL FILES FROM BCCI'S LONDON OFFICE IN 1990 AND BROUGHT THEM TO ABU DHABI WHERE THEY REMAIN INACCESSIBLE TO US INVESTIGATORS A YEAR LATER AFTER BCCI WAS SEIZED KEY BCCI OFFICIALS WERE TAKEN TO ABU DHABI AND HAVE BEEN HELD SINCE UNDER GOVERNMENT HOUSE ARREST BETWEEN ABU DHABI'S TRIAL PROCEEDINGS THIS MEANS THEY CAN'T TESTIFY IN AMERICAN COURTS AND NOW SHEIK ZAYED ASKS HIS LAWYERS TO INFLUENCE THE CLINTON ADMINISTRATION TO DO A DIPLOMATIC END RUN AROUND US LAW IS THIS THE WAY MOST VICTIMS BEHAVE THE BROADER POINT HERE GOES BEYOND THE SHEIK TO THE INTEGRITY OF THE US FINANCIAL SYSTEM DESPITE THE MAGNITUDE OF BCCI'S THEFT WE STILL KNOW LITTLE ABOUT IT NOR DO WE KNOW HOW IT CAME TO SECRETLY OWN FIRST AMERICAN ONE OF THE LARGEST BANKS IN THE NATION'S CAPITAL A BANK RUN BY BELTWAY POWER BROKERS CLARK CLIFFORD AND ROBERT ALTMAN WITH JUSTICE AND THE FEDERAL RESERVE SEEMINGLY UNINTERESTED MR ALBRIGHT'S CIVIL SUIT IS THE BEST WAY TO FIND OUT WHAT REALLY HAPPENED PERHAPS THE GONZALEZ HEARING COULD EXPLORE NOT JUST SOVEREIGN IMMUNITY BUT WHETHER THE US SHOULD INSTEAD BE DEMANDING EXTRADITION 9312080051 931208 TEXAS JOURNAL LETTERS TO THE EDITOR YOU RECENTLY LABELED WILLIAMSON COUNTY AND THE MINYARD GROCERY CHAIN AS LOSERS IN YOUR WINNERS AND LOSERS COLUMN DUE TO THEIR ACTIONS RELATING TO MORAL ISSUES I'D LABEL THEM WINNNERS THREE WILLIAMSON COUNTY COMMISSIONERS OPPOSED PROPERTY TAX BREAKS TO COMPANIES THAT WOULD OFFER HEALTHCARE BENEFITS TO SAMESEX DOMESTIC PARTNERS OF THE COMPANY'S EMPLOYEES ONE ONLY NEEDS TO LOOK AT THE FLIGHT OF FAMILIES AND FAMILYOWNED BUSINESSES FROM AUSTIN TRAVIS COUNTY NORTHWARD TO ROUND ROCK WILLIAMSON COUNTY TO UNDERSTAND THE CONTRASTING ELECTORATES OF THE TWO COUNTIES SUCH MIGRATION IS PRINCIPALLY DUE TO A DESIRE TO AVOID THE DECREASING QUALITY OF EDUCATION AND INCREASING CRIME RATE AND TAX BURDEN CHARACTERISTIC OF AUSTIN TODAY TO ENCOURAGE BEHAVIOR THAT IS THE ROOT CAUSE OF MODERN SOCIETY'S PROBLEMS AS IS THE CASE IN AUSTIN WOULD BE CONTRARY TO THE WANTS OF THE ELECTORATE MAKING UP WILLIAMSON COUNTY YOU SHOULD HAVE LABELED WILLIAMSON COUNTY A WINNER FOR HAVING COMMISSIONERS WITH THE COURAGE TO VOTE AS THEIR CONSTITUENTS WOULD WANT WHETHER IT IS POLITICALLY CORRECT OR NOT REGARDING MINYARD'S REFUSAL TO SELL AN ISSUE OF DISCOVER MAGAZINE DUE TO NUDITY ON THE COVER YOU IMPLY THAT BY MINYARD NOT SELLING THE ONE ISSUE PEOPLE WOULD BE SO OFFENDED BY ITS CENSORSHIP AS TO SHOP ELSEWHERE BUT PERHAPS MINYARD UNDERSTOOD THAT FAMILIES MIGHT AVOID THEIR STORES TO PREVENT THEIR CHILDREN FROM BEING CONFRONTED WITH NUDE PHOTOGRAPHS AT THE CHECKOUT LINE IF TRUE THEN MINYARD IS THE WINNER BY THEIR ACTIONS AND DISCOVER THE LOSER 9312080050 931208 BUSINESS BRIEF TUESDAY MORNING CORP RETAILER'S SAMESTORE SALES FELL 18 THROUGH DEC 4 TUESDAY MORNING CORP SAID SAMESTORE SALES SLUMPED 18 THROUGH DEC 4 WHILE TOTAL SALES ARE DOWN 6 TO 481 MILLION FROM 512 MILLION A YEAR EARLIER THE DALLASBASED SPECIALTY RETAILER SAID SALES HAVE BEEN VERY DISAPPOINTING PRIMARILY DUE TO INCREASED DISCOUNTING BY OTHER RETAILERS DURING THE 1992 FOURTHQUARTER THE COMPANY HAD SALES OF 71 MILLION AND EARNINGS OF 65 MILLION OR 71 CENTS A SHARE IN TRADING ON THE NASDAQ STOCK MARKET YESTERDAY TUESDAY MORNING STOCK CLOSED AT 625 DOWN 125 OR ABOUT 17 TUESDAY MORNING SAID IT PLANS ADDITIONAL HOLIDAY PROMOTIONS AND TO REALIGN BUYING OPERATIONS SO TOP EXECUTIVES HAVE MORE INPUT MARK E JARVIS CHIEF FINANCIAL OFFICER SAID TUESDAY MORNING BOUGHT SOME INVENTORY TOO EARLY MISSING PRICE CUTS THAT CAME IN THE FALL 9312080049 931208 TEXAS JOURNAL LETTERS TO THE EDITOR REGARDING THE NOV 3 ARTICLE ON SAVING DOWNTOWN DALLAS URBAN SPRAWL IS THE BYPRODUCT OF THE FEDERAL HIGHWAY SYSTEM IT IS APPROPRIATE THAT THE FEDERAL GOVERNMENT HELP REVERSE THE TREND THROUGH THE FUNDING OF PUBLICTRANSIT PROJECTS LIKE DART'S LIGHTRAIL LINE THIS PROJECT WILL MAKE DOWNTOWN MORE ATTRACTIVE FOR LIVING AND WORKING DOWNTOWN DALLAS WILL BE EVEN MORE ATTRACTIVE WHEN TEXAS TGV HIGHSPEED TRAINS BEGIN LINKING OUR AREAS WITH HOUSTON AUSTIN AND SAN ANTONIO PEOPLE WILL BE MORE INCLINED TO ENJOY THE AMBIANCE OF DOWNTOWN NIGHT LIFE WHEN THEY KNOW THAT FREQUENT DEPARTURES OF DART OR TGV TRAINS OFFER A DEPENDABLE HARRIEDFREE TRIP TO THEIR DESTINATION 9312080048 931208 INTERNATIONAL LLOYD'S OF LONDON OFFER TO COMPENSATE ITS WORSTHIT INVESTORS RAISES CRITICISM BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LLOYD'S OF LONDON UNVEILED A 900 MILLION 135 BILLION OFFER OF COMPENSATION FOR ITS WORSTHIT INVESTORS AND IMMEDIATELY RAN INTO A HAIL OF CRITICISM THE LONGAWAITED PLAN IS DESIGNED TO COMPENSATE INVESTORS IN THE 305YEAROLD INSURANCE MARKET FOR LOSSES INCURRED DURING THE 1980S BY 130 LLOYD'S SYNDICATES WHOSE MANAGERS ARE NOW BEING ACCUSED OF NEGLIGENCE THE PLAN AIMS TO AVOID COSTLY AND DRAWNOUT LITIGATION BY INDIVIDUAL INVESTORS KNOWN AS NAMES WHO WERE SUBJECT TO UNLIMITED LIABILITY BUT THE PLAN OFFERS LESS SUPPORT THAN MANY INVESTORS HAD HOPED FOR COVERING ONLY ONETHIRD OF THE 27 BILLION LOSSES IN DISPUTE IT ALSO FAILS TO OFFER ANY PROTECTION AGAINST FURTHER LOSSES EXPECTED TO MATERIALIZE UNDER THE SAME POLICIES IN THE NEXT FEW YEARS WHILE REQUIRING THOSE WHO ACCEPT IT TO FOREGO ANY FUTURE OPPORTUNITY OF LEGAL ACTION THUS PASSAGE OF THE PLAN IS UNCERTAIN IT'S UNACCEPTABLE AND WE ARE REJECTING IT SAID CHRISTOPHER STOCKWELL THE CHAIRMAN OF AN ORGANIZATION CALLED LLOYD'S NAMES ACTION GROUP WORKING PARTY REPRESENTING SOME 17000 INVESTORS I DON'T THINK IT HAS ANY APPEAL WHATEVER CONCURRED CLIVE FRANCIS WHO COORDINATES AN ASSOCIATION OF INVESTORS IN ONE OF THE 130 LLOYD'S SYNDICATES A FORMER FIGHTER PILOT AND PROPERTY BROKER HE IS ONE OF HUNDREDS OF LLOYD'S INVESTORS WHO HAVE SUFFERED PERSONAL RUIN WITH LOSSES IN HIS OWN CASE TOTALING MORE THAN 2 MILLION IN THE PAST FIVE YEARS AND THE PROSPECT OF MORE TO COME REJECTION OF THE PLAN WOULD LEAD TO YEARS OF LITIGATION BETWEEN NAMES AND THEIR AGENTS POTENTIALLY CAUSING A FURTHER DETERIORATION IN LLOYD'S ALREADY DENTED PUBLIC IMAGE OVER THE PAST THREE YEARS LLOYD'S HAS RUN UP LOSSES TOTALING MORE THAN 5 BILLION AND FIGURES FOR 1991 DUE TO BE ANNOUNCED NEXT YEAR UNDER LLOYD'S SYSTEM OF ACCOUNTING THREE YEARS IN ARREARS ARE EXPECTED TO SHOW A FURTHER LOSS OF BETWEEN 15 BILLION AND 2 BILLION UNDER THE PROPOSALS AROUND 21000 NAMES WOULD BE CREDITED WITH AMOUNTS RANGING FROM A FEW POUNDS EACH TO AS MUCH AS 1 MILLION DEPENDING ON THEIR EXPOSURE TO THE MARKET NO ONE WOULD GET MORE THAN ABOUT 60 OF THEIR LOSSES AND MANY WOULD GET A LOT LESS WHAT IS MORE REFUNDS WOULD BE OFFSET AGAINST THE TOTAL AMOUNT THAT NAMES ARE DUE TO PAY IN CLAIMS RATHER THAN BE RETURNED AS CASH THE FUNDS FOR THESE SPECIAL CREDITS WOULD COME FROM LLOYD'S CENTRAL CONTINGENCY FUND AND FROM CONTRIBUTIONS FROM THE ERRORS AND OMISSIONS INSURERS AND LLOYD'S AGENTS WHO WOULD OTHERWISE FACE CLAIMS AGAINST THEM IN LITIGATION OVER THE LOSSES LLOYD'S HAS MADE CLEAR THAT THE PLAN WILL GO THROUGH ONLY IF IT IS APPROVED BY A SUFFICIENTLY LARGE MAJORITY OF INVESTORS NAMES HAVE UNTIL THE END OF JANUARY TO DECIDE WHETHER TO ACCEPT EVEN IF IT DOESN'T GO THROUGH LLOYD'S OFFICIALS SAY THE HISTORIC INSURANCE MARKET WILL STAY IN BUSINESS LLOYD'S RECENTLY WON A NEW LEASE ON LIFE BY OPENING ITS DOORS TO INVESTMENT FUNDS AND OTHER PROVIDERS OF CORPORATE CAPITAL ACCORDING TO LLOYD'S CHAIRMAN DAVID ROWLAND 860 MILLION HAS ALREADY BEEN COMMITTED TO THE MARKET FOR 1994 IN THE FORM OF CORPORATE CAPITAL ENABLING LLOYD'S TO REVERSE A DECLINE IN ITS CAPACITY TO TAKE ON BUSINESS FOR THE FIRST TIME FOR SEVERAL YEARS 9312080047 931208 BUSINESS BRIEF ALUMINUM CO OF AMERICA SUBSIDIARY TO MAKE BUMPERS FOR NEW 1995MODEL TOYOTA ALUMINUM CO OF AMERICA PITTSBURGH SAID IT RECEIVED A PURCHASE ORDER FROM TOYOTA MOTOR MANUFACTURING GEORGETOWN KY A UNIT OF TOYOTA MOTOR CORP AICHI JAPAN TO SUPPLY FRONT AND REAR ALUMINUM BUMPERS FOR A NEW TOYOTA MODEL THE AVALON BEGINNING IN THE 1995 MODEL YEAR TERMS WEREN'T DISCLOSED ALCOA SAID ITS TIFTON ALUMINUM UNIT WILL MANUFACTURE THE BUMPERS AT ITS PLANT IN DELHI LA THE COMPANY SAID IT EXPECTS FULFILLMENT OF THE ORDER TO CREATE AS MANY AS 15 JOBS AT THE PLANT THE BUMPERS WILL BE SHIPPED TO TOYOTA'S ASSEMBLY PLANT IN GEORGETOWN WHICH IS BEING EXPANDED TO BUILD THE AVALON ALCOA SAID 9312080046 931208 TREASURY PLANS SALE OF 26 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 115 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 26 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 3750 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING MARCH 17 1994 AND JUNE 16 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794J54 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794L28 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9312080045 931208 BUSINESS BRIEF CHYRON CORP TV GRAPHICS CONCERN TO BUY 2 UNITS OF SPANISH PARTNER CHYRON CORP A MELVILLE NY MAKER OF TELEVISION GRAPHICS SYSTEMS SAID IT AGREED TO BUY THE TWO US OPERATING SUBSIDIARIES OF ITS SPANISHOWNED MAJORITY SHAREHOLDER PESA INC PESA AGREED TO TRANSFER TO CHYRON 100 OF THE STOCK OF ITS TWO UNITS PESA SWITCHING SYSTEMS INC OF HUNTSVILLE ALA AND PESA MICRO COMMUNICATIONS INC OF MANCHESTER NH IN RETURN PESA WHICH BOUGHT AN 81 INTEREST IN CHYRON IN 1991 WHEN THE NEW YORK COMPANY EMERGED FROM BANKRUPTCY WILL GET 10000 SHARES OF NEWLY ISSUED 80 CHYRON PREFERRED STOCK PESA IS A UNIT OF PESA ELECTRONICA SA A MADRID BROADCAST ELECTRONICS COMPANY PESA SWITCHING MAKES WIDEBAND SWITCHING SYSTEMS USED FOR COMMUNICATIONS AND PESA MICRO SUPPLIES TRANSMISSIONRELATED RADIO FREQUENCY COMPONENTS TO THE BROADCAST INDUSTRY 9312080044 931208 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A/S EKSPORTFINANS THE NORWEGIAN BANKS' FINANCING AND EXPORT CREDIT INSTITUTE LTD AN OFFERING OF UP TO 200 MILLION OF WARRANTS BUTLER INTERNATIONAL INC AN OFFERING OF 15 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES WITH AN ADDITIONAL 225 MILLION FOR OVERALLOTMENTS VIA THOMAS JAMES ASSOCIATES INC MFS COMMUNICATIONS CO AN OFFERING OF 6516 MILLION OF SENIOR DISCOUNT NOTES VIA SALOMON BROTHERS INC BEAR STEARNS & CO BT SECURITIES CORP AND JP MORGAN SECURITIES INC PROCYTE CORP AN OFFERING OF 25 MILLION COMMON SHARES VIA WERTHEIM SCHRODER & CO AND DAIN BOSWORTH INC SCICLONE PHARMACEUTICALS INC AN OFFERING OF 2 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND SMITH BARNEY SHEARSON INC YPF SOCIEDAD ANONIMA AN OFFERING OF 350 MILLION OF NEGOTIABLE OBLIGATIONS VIA FIRST BOSTON MERRILL LYNCH & CO AND SALOMON BROTHERS 9312080043 931208 BUSINESS BRIEFS LIBERTY CORP SIGNED A LETTER OF INTENT TO PURCHASE ALL THE REAL ESTATE ASSETS OF SCANA DEVELOPMENT CORP A SUBSIDIARY OF SCANA CORP FOR 915 MILLION IN CASH THE PROPERTIES TO BE ACQUIRED INCLUDE RESIDENTIAL COMMERCIAL AND INDUSTRIAL PROJECTS IN SOUTH CAROLINA MIDWEST EXPRESS THE MILWAUKEEBASED AIRLINE HAS ORDERED 12 BEECH 1900D AIRLINERS VALUED AT ABOUT 50 MILLION THE PLANES WILL BE DELIVERED BY BEECH AIRCRAFT A UNIT OF RAYTHEON CO SHORELINE FINANCIAL CORP WILL ACQUIRE THE SOUTH HAVEN MICH BRANCH OFFICE OF GREAT LAKES BANCORP FOR AN UNDISCLOSED AMOUNT BROOKLYN UNION GAS CO SIGNED A LONGTERM NATURALGAS SUPPLY CONTRACT WITH A MINORITYOWNED ENERGY FIRM ICC ENERGY CORP DALLAS THE 10YEAR 40 MILLION CONTRACT CALLS FOR DELIVERY OF FIVE MILLION CUBIC FEET OF NATURAL GAS DAILY COOPER INDUSTRIES INC ACQUIRED THE REMAINING 585 OF HOME FITTINGS ESPANA SA'S SHARES OUTSTANDING FROM SEVERAL PRIVATE INVESTORS TERMS WEREN'T DISCLOSED HOFESA A SPANISH COMPANY WILL BE A UNIT OF COOPER'S KIRSCH DIVISION AND WILL INCREASE KIRSCH'S EUROPEAN PRESENCE 9312080042 931208 BUSINESS BRIEF FLUOR CORP PROFIT POSTED FOR 4THPERIOD AGAINST YEAREARLIER LOSS FLUOR CORP REBOUNDING FROM A YEARAGO LOSS REPORTED NET INCOME OF 48 MILLION OR 59 CENTS A SHARE IN THE FISCAL FOURTHQUARTER ENDED OCT 31 AND BOOSTED ITS DIVIDEND EIGHT CENTS TO 13 CENTS A SHARE SALES FOR THE PERIOD WERE 22 BILLION UP 20 FROM 18 BILLION IN 1992 THE IRVINE CALIF ENGINEERING AND CONSTRUCTION FIRM HAD A NET LOSS OF 59 MILLION OR 73 CENTS A SHARE AFTER FLUOR'S DIVESTMENT OF ITS UNPROFITABLE LEADPRODUCTS BUSINESS A SPOKESWOMAN FOR FLUOR SAID THAT THE COMPANY'S IMPROVED RESULTS THIS YEAR STEMMED FROM COSTCUTTING MOVES AND INCREASED EFFICIENCY RATHER THAN MARKET CONDITIONS FOR THE FISCAL YEAR FLUOR HAD NET OF 167 MILLION OR 203 A SHARE COMPARED WITH NET OF 58 MILLION OR SEVEN CENTS A SHARE A YEAR AGO THE 1992 RESULTS INCLUDED AFTERTAX CHARGES OF 129 MILLION RELATED TO THE DIVESTMENT AND TO NEW POSTRETIREMENT BENEFIT ACCOUNTING STANDARDS BACKLOG FOR FISCAL 1993 WAS 148 BILLION A NOTCH ABOVE 147 BILLION A YEAR EARLIER 9312080041 931208 YIELDS ON CDS END WEEK LITTLE CHANGED NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE COMPANIES WERE GENERALLY FLAT IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCHED UP TO 275 FROM 274 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 445 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS EASED TO 323 FROM 324 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 456 FROM 452 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE ROSE TO 282 FROM 281 THE AVERAGE YIELD ON FIVEYEAR JUMBOS SLID TO 463 FROM 464 ACCORDING TO BANXQUOTE 9312080040 931208 BUSINESS BRIEF PEER REVIEW ANALYSIS INC DIRECTORS AUTHORIZE MERGER WITH CORE MANAGEMENT INC PEER REVIEW ANALYSIS INC BOSTON SAID ITS BOARD AUTHORIZED A MERGER AGREEMENT WITH CORE MANAGEMENT INC A CLOSELY HELD LOS ANGELES COMPANY SUBJECT TO THE FILING OF AN SEC REGISTRATION STATEMENT THE STATEMENT FORM S4 IS EXPECTED TO TAKE AT LEAST THREE TO FOUR WEEKS TO PREPARE IF THE SHAREHOLDERS OF BOTH COMPANIES APPROVE THE MERGER CORE SHAREHOLDERS WOULD RECEIVE ABOUT 45 OF THE STOCK IN PEER REVIEW GEORGE C CARPENTER IV 35 YEARS OLD CORE'S CHIEF EXECUTIVE WOULD BECOME CEO OF PEER REVIEW WHILE ALFRED LEWIS 37 CURRENTLY PEER REVIEW'S CEO AND PRESIDENT WOULD BE ITS PRESIDENT HEADQUARTERS ARE TO REMAIN IN BOSTON PEER REVIEW PROVIDES HEALTHCARE MANAGEMENT FOR INSURERS AND CORPORATIONS CORE MANAGES DISABILITY PROGRAMS FOR INSURANCE PLANS 9312080038 931208 POLITICS & POLICY CLINTON TAPS PHILIP LADER TO BE DEPUTY CHIEF OF STAFF WASHINGTON PRESIDENT CLINTON CHOSE HIS LONGTIME FRIEND PHILIP LADER TO BE DEPUTY CHIEF OF STAFF MR LADER WHO IS NOW DEPUTY DIRECTOR FOR MANAGEMENT AT THE WHITE HOUSE BUDGET OFFICE IS BEST KNOWN AS THE FOUNDER OF THE RENAISSANCE WEEKEND THE TALKFEST AND NETWORKING EXTRAVAGANZA THAT MR CLINTON HAS ATTENDED ON NEW YEAR'S EVE FOR MANY YEARS THE 47YEAROLD FORMER UNIVERSITY PRESIDENT ONCE RAN UNSUCCESSFULLY FOR GOVERNOR OF SOUTH CAROLINA IN THE WHITE HOUSE THIS YEAR HE HAS GAINED A REPUTATION FOR HARD WORK AND A MASTERY OF THE DETAILS OF GOVERNMENT HE HAD BEEN SLATED TO MOVE UP AND BECOME MR CLINTON'S PERSONNEL DIRECTOR INSTEAD HE NOW WILL BECOME IN EFFECT THE WHITE HOUSE'S CHIEF OPERATING OFFICER HE SUCCEEDS ROY NEEL WHO WILL BECOME HEAD OF THE US TELEPHONE ASSOCIATION SEPARATELY NEW YORK LAWYER HAROLD ICKES WHO WILL RUN THE ADMINISTRATION'S HEALTHCARE INITIATIVE FOR HILLARY RODHAM CLINTON IS IN LINE EVENTUALLY TO BE NAMED A DEPUTY CHIEF OF STAFF FOR POLITICAL OUTREACH IN THAT JOB HE WOULD HAVE CHARGE NOT ONLY OF HEALTH CARE MR CLINTON'S TOP PRIORITY FOR NEXT YEAR BUT ALSO CONTACTS WITH CONGRESS INTEREST GROUPS AND STATE AND LOCAL OFFICIALS 9312080037 931208 BUSINESS BRIEF F&C INTERNATIONAL INC PACT SIGNED WITH INVESTOR TO FILE REORGANIZATION PLAN F&C INTERNATIONAL INC SAID IT SIGNED AN AGREEMENT WITH AN INVESTOR TO FILE A REORGANIZATION PLAN IN US BANKRUPTCY COURT THE CINCINNATIBASED FRAGRANCE AND FLAVOR MAKER FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN LATE APRIL AFTER ALLEGING THAT ITS FOUNDER AND FORMER CHAIRMAN SCHEMED TO INFLATE PROFITS F&C SAID IT SIGNED AN AGREEMENT WITH HANSPETER WILD OWNER OF THE GERMANYBASED RUDOLF WILD GROUP COMPANIES WHICH MAKES FOOD INGREDIENTS UNDER THE PLAN F&C WOULD OPERATE AS A STAND ALONE COMPANY DR WILD WOULD BECOME ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND GARY REIMER A RUDOLF WILD EXECUTIVE WOULD BECOME CHIEF FINANCIAL OFFICER THE COMPANY SAID THE PLAN MUST BE SUBMITTED TO COURT BY DEC 17 F&C SAID IT COULD EMERGE FROM CHAPTER 11 BY MIDMARCH 9312080036 931208 TECHNOLOGY FRENCH GERMAN PHONE CONCERNS FORM VENTURE ON BUSINESS COMMUNICATIONS BY JAMES PRESSLEY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE STATEOWNED TELEPHONE COMPANIES OF FRANCE AND GERMANY ANNOUNCED AMBITIOUS PLANS FOR A JOINT VENTURE JOINING THE BATTLE FOR GLOBAL BUSINESS COMMUNICATIONS THE DEAL ANNOUNCED BY FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM FALLS WELL SHORT OF A MERGER BUT THE MEMORANDUM OF UNDERSTANDING SIGNED YESTERDAY WOULD LINK MOST OF THE TWO GIANT COMPANIES' VOICE AND DATA SERVICES FOR BUSINESS NETWORKS THE TWO COMPANIES ALSO SAID THEY WERE URGENTLY SEEKING A US PARTNER AND NOTED WITHOUT ELABORATION THAT THEY WOULD SOON CONCLUDE NEGOTIATIONS WITH AMERICAN TELEPHONE & TELEGRAPH CO ON THE SUBJECT EARLIER THIS FALL WHEN THE TWO EUROPEAN COMPANIES SAID THEY WERE SEEKING A CLOSE LINKUP THEY DENIED REPORTS THAT THEY WERE NEAR A THREEWAY DEAL WITH AT&T YESTERDAY AT&T ACKNOWLEDGED THAT IT HAD TALKED WITH THE FRENCH AND GERMAN COMPANIES BUT WOULDN'T COMMENT FURTHER FRANCE TELECOM AND DEUTSCHE BUNDESPOST WILL HOLD EQUAL SHARES IN THE STILL UNNAMED PARTNERSHIP WHICH THEY SAY WILL OFFER COMPANIES OPERATING IN MORE THAN ONE COUNTRY ONESTOP SHOPPING FOR ALL THEIR COMMUNICATIONS NEEDS THE NEW VENTURE TO BE BASED IN BRUSSELS WILL BE BOLSTERED BY A FIVEYEAR INVESTMENT OF ONE BILLION EUROPEAN CURRENCY UNITS 113 BILLION THE NEW COMPANY EXPECTS TO BEGIN OPERATIONS IN 1995 AND POST SALES OF ABOUT 15 BILLION ECUS IN ITS FIRST YEAR THE DEAL COMES AT A TIME WHEN PHONE COMPANIES WORLDWIDE ARE RACING TO FORM ALLIANCES BIG ENOUGH TO SATISFY THE GROWING COMMUNICATIONS APPETITES OF COMPANIES THAT OPERATE IN MORE THAN ONE COUNTRY THE BIGGEST DEAL TO DATE WAS BRITISH TELECOMMUNICATIONS PLC'S AGREEMENT IN JUNE TO SPEND 43 BILLION FOR A 20 STAKE IN MCI COMMUNICATIONS CORP YESTERDAY'S FRANCOGERMAN ANNOUNCEMENT SET OFF ALARM BELLS AT BRITAIN'S TOP TWO TELECOMMUNICATIONS COMPANIES BRITISH TELECOM AND CABLE & WIRELESS PLC JAMES ROSS CHIEF EXECUTIVE OFFICER OF CABLE & WIRELESS SAID IT WAS TIME FOR GOVERNMENTS TO TAKE STOCK OF BARRIERS TO COMPETITION IN BOTH CONTINENTAL EUROPE AND THE US SPEAKING SPECIFICALLY OF THE FRANCOGERMAN DEAL MR ROSS SAID CABLE & WIRELESS FEELS THAT ANY APPROVAL FOR AN ALLIANCE BETWEEN TWO SUCH DOMINANT CARRIERS SHOULD BE ACCOMPANIED BY THE GENUINE OPENINGUP OF THEIR OWN MARKETS BRITISH TELECOM EXECUTIVES ECHOED THAT SENTIMENT THE BIG UNANSWERED QUESTION SAID GRAHAM WILDE OF LONDON TELECOMMUNICATIONS CONSULTANCY CIT RESEARCH IS WHAT SEGMENT OF THE INTERNATIONAL MARKET THE NEW ALLIANCE WILL TARGET MOST AGGRESSIVELY MOST ATTENTION SO FAR HAS BEEN DEVOTED TO THE TELECOMMUNICATIONS NEEDS OF HUGE MULTINATIONALS WITH OPERATIONS AROUND THE WORLD SUCH AS GENERAL MOTORS CORP OR INTERNATIONAL BUSINESS MACHINES CORP INDEED FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM ALREADY JOINTLY OWN AN OPERATION EUNETCOM THAT FOCUSES ON THIS ALTHOUGH EUNETCOM WILL BE FOLDED INTO THE NEW VENTURE MR WILDE SUGGESTED THAT THE OVERALL EMPHASIS MAY NOW BE SHIFTING TOWARD A LOWER END OF THE MARKET TARGETING SMALLER COMPANIES IN EUROPE IS A SENSIBLE WAY FOR THEM TO GO BECAUSE THE TOP OF THE MARKET IS VERY CROWDED THE CHAIRMEN OF BOTH COMPANIES VOICED INTEREST IN THIS MARKET SEGMENT IN THEIR JOINT NEWS CONFERENCE IN BRUSSELS WHERE THEY ALLUDED TO THE NEEDS OF SMALL AND MIDSIZE BUSINESSES ESPECIALLY THOSE BASED IN EUROPE 9312080035 931208 POWER LINES SHORTCIRCUIT SALES HOMEOWNERS CLAIM BY ALIX M FREEDMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE LEGAL BATTLES OVER THE PURPORTED HAZARDS OF HIGHVOLTAGE POWER LINES HAVE SHIFTED FROM HEALTH TO REAL ESTATE THE NEW BREED OF PLAINTIFFS ARE PEOPLE LIKE JEAN AND MARTIN COVALT OWNERS OF A SPACIOUS VILLA IN SAN CLEMENTE CALIF WITH AVOCADO ORCHARDS SAUNAS AND A POWER LINE RUNNING THROUGH THEIR BACKYARD SOON AFTER THE COVALTS BOUGHT THE HOUSE IN 1989 SAN DIEGO GAS & ELECTRIC CO WORKERS ADDED EIGHT MORE WIRES TO THE LINE AND CRANKED UP THE CURRENT THE FALLOUT NEAR THE FAMILY SWIMMING POOL THE ELECTROMAGNETIC FIELDS OR EMFS PRODUCED BY THAT CURRENT ROSE TO ABOUT 10 TIMES THE LEVEL THAT SOME PEOPLE DEEM SAFE THE EMF READINGS WERE ALSO EXTREMELY HIGH IN THE BEDROOM OF THE COVALTS' TWO INFANTS LAST YEAR AFTER AN EPIDEMIOLOGIST DISPATCHED BY SDG&E FAILED TO ALLAY THEIR FEARS THE FRANTIC COUPLE PUT THEIR HOUSE UP FOR SALE IT DIDN'T DRAW A SINGLE OFFER EVEN AFTER ITS PRICE WAS CUT IN HALF TO 750000 CONVINCED THE HOUSE IS UNSELLABLE THE COVALTS HAVE STOPPED MAKING THEIR 6000AMONTH MORTGAGE PAYMENTS AND ARE WONDERING WHEN THEIR BANK WILL FORECLOSE JUST BEFORE THANKSGIVING THE COVALTS DELIVERED A JOLT OF THEIR OWN THEY JOINED WITH 22 NEIGHBORS IN A CLASSACTION LAWSUIT AGAINST SDG&E WE SANK EVERY DIME INTO THIS HOUSE BECAUSE WE THOUGHT WE WOULD LIVE HERE FOR 20 YEARS MS COVALT SAYS THE UTILITY HAS BASICALLY RUINED OUR LIVES AND DESTROYED US SIGNIFICANTLY THE LAWSUIT DOESN'T ALLEGE THAT ANYONE'S HEALTH HAS BEEN DAMAGED BY PROXIMITY TO THE POWER LINES INSTEAD THESE PLAINTIFFS IN TONY SAN CLEMENTE ALONG WITH AN INCREASING NUMBER OF ANGRY HOMEOWNERS NATIONWIDE ARE SAYING THAT THEY SHOULD BE COMPENSATED BECAUSE THE VALUE OF THEIR PROPERTY HAS FALLEN DUE TO A PERCEIVED HEALTH RISK NOT SURPRISINGLY SDG&E OFFICIALS TAKE A DIFFERENT VIEW THIS IS A GROUP OF WELLTODO HOMEOWNERS WHO PURCHASED THEIR HOME AT THE PEAK OF THE CALIFORNIA REALESTATE MARKET AND APPEAR TO BE LOOKING FOR A DEEP POCKET TO MITIGATE THEIR LOSS IN WEALTH SAYS GREG BARNES AN SDG&E LAWYER FOR TWO DECADES SCIENTIFIC DEBATE HAS RAGED HOW DANGEROUS ARE THE EMFS THAT EMANATE FROM EVERY WIRE THROUGH WHICH A CURRENT RUNS ALTHOUGH THE RISKS ARE BELIEVED TO BE LOW SOME SCIENTISTS HAVE FOUND AN ASSOCIATION BETWEEN CHILDHOOD CANCER AND POWER LINES AND SIMILAR RISKS AMONG OCCUPATIONALLY EXPOSED WORKERS A YEAR AGO RESEARCHERS FROM SWEDEN'S PRESTIGIOUS KAROLINSKA INSTITUTE REPORTED FINDING UP TO A FOURFOLD HIGHER LEUKEMIA RATE AMONG SWEDISH CHILDREN LIVING NEAR POWER LINES A COMPANION STUDY RELEASED AT THE SAME TIME BY THE NATIONAL INSTITUTE OF OCCUPATIONAL HEALTH ALSO IN SWEDEN SHOWED THAT MALE WORKERS EXPOSED TO APPROXIMATELY THE SAME LEVELS OF EMF HAD THREE TIMES THE RATE OF A CERTAIN KIND OF LEUKEMIA STILL CERTAIN OTHER STUDIES OF WORKERS HAVE FOUND NO UNUSUAL CANCER LEVELS AND HEALTH PROBLEMS AMONG EXPOSED WORKERS AND NO ONE HAS FIGURED OUT HOW EMFS MAY CAUSE CANCER AND HOW MUCH EXPOSURE MIGHT BE PERILOUS THE UTILITY INDUSTRY WHICH IS NOW SPENDING MORE THAN 15 MILLION A YEAR TO FUND EMF STUDIES SAYS THE EVIDENCE IS INCONCLUSIVE UNTIL NOW PLAINTIFFS CHARGING THAT POWER LINES CAUSED THEIR CANCER HAVE HAD SCANT SUCCESS BUT CONTINUING SCIENTIFIC CONTROVERSY AND RISING PUBLIC AWARENESS HAVE PRODUCED PLAINTIFFS LIKE THE COVALTS THE BIGGEST ENERGIZER COURTS IN STATES INCLUDING CALIFORNIA FLORIDA AND NEW YORK NOW ALLOW LAWSUITS THAT BYPASS THE MEDICAL ISSUES TO FOCUS SOLELY ON THE ECONOMIC IMPACT OF HOME BUYERS' FEARS LAST MONTH IN A LANDMARK CASE BROUGHT AGAINST THE POWER AUTHORITY OF THE STATE OF NEW YORK THE STATE'S COURT OF APPEALS RULED THAT LANDOWNERS WHOSE PROPERTY IS SEIZED BY UTILITIES FOR NEW CONSTRUCTION CAN SEEK DAMAGES WHEN CANCERPHOBIA LOWERS THE VALUE OF THE REST OF THEIR PROPERTY THE JUDGE SAID THAT PROPERTY OWNERS MUST PRESENT CREDIBLE TANGIBLE EVIDENCE OF THAT FEAR PLAINTIFFS' LAWYERS CONTEND THE RULING ALSO APPLIES TO HOMEOWNERS WHOSE LAND HASN'T ACTUALLY BEEN SEIZED BY A UTILITY BUT WHO LIVE NEAR NEW OR EXISTING LINES ALTHOUGH THEIR CLAIMS ARE LARGELY UNTESTED PLAINTIFFS' NEW LIBERTY TO SKIP THE SCIENCE HAS UTILITIES BRACED FOR MORE SUITS AND MORE PAYOUTS PROPERTY DEVALUATION CASES ARE GOING TO BE A MAJOR SOURCE OF LITIGATION AGAINST UTILITIES SAYS MICHAEL WITHEY A SEATTLE LAWYER WHO IS LEADING THE NASCENT EMF BAR'S CRUSADE THEY ARE CHEAPER TO BRING THAN PERSONALINJURY CASES BECAUSE YOU DON'T HAVE TO CONDUCT MINITRIALS ON THE SCIENCE UTILITY OFFICIALS INSIST THAT EMFS POSE NO THREAT EITHER TO HEALTH OR REAL ESTATE VALUES BUT SOME ARE JITTERY ABOUT THE SHEER NUMBERS OF POTENTIAL LITIGANTS TO DATE TRANSMISSION LINES WHICH ARE HIGHLY VISIBLE AND CARRY POWER CROSSCOUNTRY AT HIGH VOLTAGE HAVE GRABBED THE HEADLINES STILL THE LESS IMPOSING DISTRIBUTION LINES THAT RUN THROUGH AMERICA'S NEIGHBORHOODS ARE FAR MORE UBIQUITOUS AND CLOSER TO HOMES AND THESE TOO CAN GENERATE HIGH LEVELS OF EMF THE POTENTIAL IMPACT OF THESE SUITS MAY BE GREATER BECAUSE IT'S A LOT EASIER TO FIND SOMEONE WHO MERELY LIVES NEAR A POWER LINE THAN SOMEONE WITH SUBSTANTIAL EMF EXPOSURE WHO HAS DIED OF CANCER SAYS MARK WARNQUIST A LAWYER WHO REPRESENTS THE UTILITY INDUSTRY IN PLEASANTVILLE NY HOWARD REISS BLAMES A CONSOLIDATED EDISON CO POWER LINE 75 FEET FROM HIS HOUSE FOR DRIVING HIM FROM HIS INTENDED RETIREMENT HOME FEARFUL FOR HIS HEALTH HE PUT HIS HOUSE UP FOR SALE IN APRIL AND STOPPED COUNTING AFTER 89 PROSPECTIVE BUYERS TROOPED THROUGH HIS HOUSE FIRST PRICED AT 400000 AND NOW AT 275000 WITHOUT A SINGLE OFFER IN GUILFORD CONN KEVIN BRUNELLE ACCUSES CONNECTICUT LIGHT & POWER CO OF WREAKING HAVOC ON HIS MARRIAGE AND HIS DREAM HOME A TWOFAMILY HOUSE LOCATED IN THE SHADOWS OF THE UTILITY'S SUBSTATION IN 1991 AFTER HIS STREET GAINED MEDIA NOTORIETY FOR WHAT RESIDENTS CHARACTERIZED AS AN UNUSUALLY HIGH INCIDENCE OF EMFRELATED CANCER HIS TENANTS MOVED OUT AND WHEN ONE OF HIS SONS DEVELOPED A TUMOR IN HIS LEG HIS WIFE AND CHILDREN DECAMPED TOO UNABLE TO HANDLE HIS MOUNTING DEBTS MR BRUNELLE PUT HIS HOUSE APPRAISED AT 140000 IN 1986 ON THE MARKET FOR 118000 EVENTUALLY HIS BANK FORECLOSED THE HOUSE WAS SOLD LAST MONTH AFTER BEING LISTED AT 69900 DEREK BENHAM A NEW HOMEOWNER IN OAKLAND CALIF SAYS WHEN A REALTOR RECENTLY TRIED TO SHOW HIM A HOUSE A STONE'S THROW AWAY FROM A TRANSMISSION LINE HE AND HIS WIFE JUST TURNED AROUND AND SPLIT DAVID BOLTON A HOUSTON APPRAISER DID A STUDY SEVERAL MONTHS AGO SHOWING THAT 100 PROPERTIES BORDERING A TRANSMISSION LINE SOLD FOR 13 TO 30 LESS THAN 100 COMPARABLE PROPERTIES AWAY FROM THE LINE BUT IN THE SAME NEIGHBORHOOD THE UTILITY INDUSTRY TELLS A DIFFERENT STORY KANSAS CITY POWER & LIGHT CO IS JUST THE LATEST TO RELEASE A STUDY CONCLUDING THAT POWER LINES HAVE NO IMPACT ON PROPERTY PRICES UTILITY OFFICIALS ARGUE THAT THE ECONOMY NOT FEAR OF EMFS IS THE PRIME CULPRIT BEHIND SLUGGISH REALESTATE SALES AND WHILE MANY UTILITIES ARE TRYING TO REROUTE OR RECONFIGURE WIRING ON NEW LINES TO REDUCE EMF LEVELS THEY SAY THE EXPENSE OF REJIGGERING EXISTING LINES MAKES NO SENSE SINCE EMFS ARE AN UNPROVEN HAZARD BUT SOME HOMEOWNERS SAY SUCH OBDURACY HAS MADE COURT THEIR LAST RESORT AT A TOWN MEETING WITH CON EDISON CO THIS PAST SUMMER PLEASANTVILLE RESIDENTS ENTREATED THE UTILITY TO BURY THE LINE BUT OFFICIALS CITED A 10 MILLIONPERMILE FIGURE OFFERING ONLY TO STUDY THE MATTER FURTHER NOW SOME IRATE RESIDENTS HAVE PUT OUT LEGAL FEELERS THEY'VE PUSHED US TO THE POINT WHERE WE HAVE NO OTHER ALTERNATIVES SAYS MR REISS A CON EDISON SPOKESMAN REPLIES THAT THE UTILITY'S CONCERN IS NOT THE MONEY BUT THE ABSENCE OF INFORMATION ABOUT WHAT LEVELS OF EMF MAY BE UNSAFE SIMILARLY DR MARK MCCARTIN WHO BROUGHT THE CLASS ACTION AGAINST SDG&E LAST NOVEMBER SAYS THAT HE AND HIS NEIGHBORS ARE FIGHTING FOR THE HEALTH OF THEIR KIDS AND WOULD GET OUT OF THEIR HAIR FOREVER IF THE UTILITY WOULD SIMPLY MOVE ITS LINE TO AN UNPOPULATED AREA BUT MR BARNES SDG&E'S LAWYER ESTIMATES THAT MOVING THE THREEMILE LINE IN QUESTION WOULD COST A PROHIBITIVE 18 MILLION THE PLAINTIFFS HE ADDS TURNED DOWN SDG& E'S OFFER TO RECONFIGURE THE LINE TO CANCEL OUT SOME OF THE MAGNETIC FIELDS THAT WOULD HAVE REDUCED EMF LEVELS BY UP TO 70 FOR A MERE 76000 IT ISN'T CLEAR IF LINELINKED PROPERTY CLAIMS WILL TURN INTO THE NEXT ASBESTOS LITIGATION SINCE EMFS ARE SO OMNIPRESENT FLOWING FROM CELLULAR PHONES HAIRDRYERS AND VDTS PLAINTIFFS' LAWYERS SUSPECT JURORS WILL REQUIRE LAND OWNERS TO OFFER POWERFUL PROOF THAT EMFS TRULY WERE THE CAUSE OF DECLINING PROPERTY VALUES AND THINGS MIGHT PROVE TRICKY EVEN FOR HOMEOWNERS ARMED WITH REAMS OF MARKET DATA RECENTLY FOR EXAMPLE DOROTHY ENGLISH WAS FORCED TO TAKE A 70000 LOSS ON HER FEASTERVILLE PA HOUSE LOCATED JUST 100 FEET FROM PHILADELPHIA ELECTRIC CO'S POWER LINE MS ENGLISH WHO WANTS TO SUE THE UTILITY CLAIMS THE PROPERTY REGISTERED DANGEROUS LEVELS OF EMF BUT DEBORAH TAYLOR THE NEW BUYER SAYS THE LINE NEVER FAZED HER WHY WAS THE HOUSE SUCH A BARGAIN IT DIDN'T SHOW VERY WELL BECAUSE THEY HAD THREE DOGS AND 10 CATS AND THE LITTER BOXES ON THE WALLTOWALL CARPETS COULD MAKE YOU GAG MS TAYLOR SAYS 9312080034 931208 BUSINESS BRIEF HAWAIIAN ELECTRIC INDUSTRIES INC UTILITY SEEKS RATE INCREASE OF 134 FOR ISLAND OF HAWAII HAWAIIAN ELECTRIC INDUSTRIES INC SAID ITS ELECTRIC UTILITY SUBSIDIARY SERVING THE BIG ISLAND OF HAWAII FILED A REQUEST FOR A 134 RATE INCREASE WITH THE HAWAII PUBLIC UTILITIES COMMISSION THE REQUESTED INCREASE EQUAL TO 158 MILLION IN ANNUAL REVENUE IS BASED ON A 124 RETURN ON AVERAGE COMMON EQUITY THE HONOLULUBASED HOLDING COMPANY SAID THE COMMISSION GRANTED A 13 RETURN ON EQUITY 14 MONTHS AGO THE RATE BOOST IS NEEDED FOR NEW TRANSMISSION AND DISTRIBUTION LINES ON HAWAII ONE OF THE FASTEST GROWING ISLANDS IN THE STATE A COMPANY SPOKESMAN SAID A COMMISSION RULING ON THE REQUEST BY THE HAWAII ELECTRIC LIGHT CO UNIT IS REQUIRED WITHIN 10 MONTHS 9312080033 931208 THE GAUSSMETER A HOT NEW GADGET BY ALIX M FREEDMAN THE BACKLASH AGAINST THE ELECTRIFICATION OF AMERICA HAS INTENSIFIED ENTREPRENEURIAL INTEREST IN AN OBSCURE GIZMO THE GAUSSMETER UNTIL THE LATE 1980S THE GAUSSMETER SO NAMED BECAUSE EMF RADIATION IS MEASURED IN UNITS CALLED MILLIGAUSS WAS A GADGET USED BY RESEARCH LABS AND A FEW GARAGE TINKERERS TODAY SOME 30 FIRMS HAWK USERFRIENDLY VERSIONS OF THE HANDHELD DEVICE WHICH COST ABOUT 200 AND PROVIDE A DIGITAL READOUT OF MAGNETICFIELD STRENGTH THE TARGET AUDIENCE THOSE BENT ON QUANTIFYING ONE OF THE MOST EPHEMERAL CONTAMINANTS OF THE INFORMATION AGE THERE'S NO WAY TO KNOW WHERE THERE IS A FIELD WITHOUT A GAUSSMETER NONE OF YOUR SENSES WORK EXPLAINS LOUIS SLESIN EDITOR OF MICROWAVE NEWS WHICH TRACKS EMFRELATED DEVELOPMENTS SOME GAUSSMETER PEDDLERS THANK ESCALATING MEDIA COVERAGE FOR THEIR GROWING MARKET THE MEDIA HAVE BROUGHT THE LEVEL OF AWARENESS OF THE GENERAL PUBLIC TO A FERVOR THAT WAS UNKNOWN BEFORE SAYS JOE NOWLAN A PRODUCT MANAGER AT WALKER SCIENTIFIC INC ONE OF THE MAJOR MANUFACTURERS IN HOUSTON SHERRY CHESHIRE IS ABOUT TO BUY A GAUSSMETER TO KEEP TABS ON HER ALMA MATER A JUNIOR HIGH SCHOOL LOCATED ABOUT FIVE YARDS FROM A HOUSTON LIGHTING & POWER CO TRANSMISSION LINE I'D LIKE TO HELP KEEP THE SCHOOL DISTRICT INFORMED MS CHESHIRE EXPLAINS THE GADGET'S APPEAL PERSISTS DESPITE THE FACT THAT THERE'S NO AGREEMENT ON HOW TO INTERPRET ITS READINGS SOME ACTIVISTS SAY THAT ANYTHING OVER TWO OR THREEMILLIGAUSS IS DANGEROUS HIGH VOLTAGE LINES CAN OFTEN EXCEED 100 MILLIGAUSS AT CLOSE RANGE BUT FALL OFF WITH DISTANCE THE UTILITIES ALSO FUEL THE GAUSSMETER'S POPULARITY BY OFFERING FREE HOME MEASUREMENTS PACIFIC GAS & ELECTRIC CO THE NATION'S LARGEST INVESTOROWNED UTILITY SAYS THAT LAST YEAR 558 CUSTOMERS REQUESTED READINGS IN THEIR HOMES THROUGH OCTOBER OF THIS YEAR THAT FIGURE WAS 4052 MARTHA MCNEAL THE COMPANY'S EMF PROGRAM DIRECTOR SAYS THE SURGE IS DUE IN PART TO AN INSERT TOUTING THE SERVICE THAT THE COMPANY'S 123 MILLION CUSTOMERS RECEIVED WITH THEIR BILLS WHY SUCH LARGESSE BY TAKING MEASUREMENTS OF HOT SPOTS GENERATED BY OTHER OFFENDING APPLIANCES UTILITIES CAN DIVERT CUSTOMER ATTENTION FROM THEIR POWER LINES INDUSTRY CRITICS SAY IT'S MISLEADING TO HAVE PEOPLE THINK THE ONLY SOURCE OF MAGNETIC FIELDS IS POWER LINES ASSERTS MS MCNEAL FOR ALL THE HOOPLA SOME MARKETERS ADMIT THAT THE GAUSSMETER MAY PROVE MORE FASHIONABLE THAN PROFITABLE THE BUSINESS IS SO DEPENDENT ON MEDIA REPORTS THAT MANUFACTURERS ARE SOMETIMES CAUGHT SHORT WHEN FRESH NEWS HITS PRICE RESISTANCE IS ANOTHER PROBLEM NEIGHBORS TEND TO SHARE THE SAME GAUSSMETER AND THE GRATIS VISITS FROM THE UTILITIES HAS HELD DOWN OTHER SALES WHAT'S MORE A SLEW OF MANUFACTURERS ARE ALL TARGETING A GROUP THAT EVEN IF GROWING REMAINS TINY WHEN KARL RILEY OWNER OF MAGNETIC SCIENCES INTERNATIONAL SAYS HE RECENTLY PRODUCED A LARGE INVENTORY OF GAUSSMETERS TO HANDLE UNFORESEEN CONSUMER YEARNINGS HE'S TALKING 400 UNITS AS WALKER SCIENTIFIC'S MR NOWLAN PUTS IT THIS ISN'T THE NEXT BARBIE DOLL 9312080032 931208 HEARD ON THE STREET NATHAN'S FAMOUS HAS THE FIXINGS FOR A HOT STOCK BUT INVESTORS DON'T SEEM TO RELISH THE FIRM BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NATHAN'S FAMOUS IS THE RESTAURANT STOCK WALL STREET FORGOT WHILE OTHER RESTAURANT STOCKS HAVE BEEN SOARING FOR NO APPARENT REASON SHARES OF THE NEW YORK HOTDOG CHAIN HAVE BEEN AS COLD AS A DAYOLD WEINER THERE'S JUST NO INTEREST SAYS EE BUZZY GEDULD OF HERZOG HEINE GEDULD MR GEDULD'S FIRM IS ONE OF SEVERAL THAT HAVE MADE A MARKET WHAT THERE IS OF IT IN NATHAN'S SINCE THE SHARES BEGAN TRADING ON NASDAQ IN FEBRUARY BUT WALL STREET WHICH HAS BEEN PERFECTLY WILLING TO BID UP SUCH TRENDY NEW STOCKS AS BOSTON CHICKEN SNAPPLE BEVERAGE AND A HOST OF STEAKHOUSE STOCKS MIGHT BE MISSING OUT ON A GOOD THING NATHAN'S IS A DEBTFREE COMPANY WITH AN INTERESTING BUSINESS PLAN WHICH INCLUDES THE OPENING OF NATHAN'S OUTLETS IN SOME CALDOR AND HOME DEPOT STORES BOTH POTENTIALLY LUCRATIVE ALLIANCES THE RELATIONSHIP WITH HOME DEPOT ONE OF WALL STREET'S MOSTLOVED STOCKS IS A PARTICULARLY POSITIVE DEVELOPMENT CALDOR HAS OPENED NATHAN'S OUTLETS IN 48 OF ITS STORES AND SAYS IT INTENDS TO OPEN MORE HOME DEPOT HAS PUT A NATHAN'S IN ONE SUBURBAN ATLANTA LOCATION AND WE'LL BE ADDING SOME MORE IN THIS COMING YEAR SAYS A HOME DEPOT SPOKESMAN IT'S WORKED OUT WELL THEY'RE A GOOD COMPANY WE THINK THEY HAVE A GOOD PRODUCT MORE IMPORTANT THE COMPANY'S STOCK PRICE HASN'T RUMBLED AHEAD OF ITSELF AFTER COMING PUBLIC IN FEBRUARY AT 9 A SHARE NATHAN'S HAS BARELY BUDGED IT CLOSED YESTERDAY AT 7 7/8 UP 1/8 IN SLEEPY TRADING OF 4300 SHARES THAT PRICE ISN'T TOO FAR ABOVE BOOK VALUE OF 6 A SHARE SO WHY HAS NATHAN'S STOCK BEEN SUCH A DOG COMPARED WITH OTHER INITIAL PUBLIC OFFERINGS STANDARD & POOR'S EMERGING & SPECIAL SITUATIONS NEWSLETTER RECOMMENDED NATHAN'S STOCK BEFORE THE IPO BUT BLAMES THE SHARES' ENSUING MALAISE ON THE STREET'S INATTENTION IT RECENTLY SWITCHED ITS OPINION TO SELL THE NEWSLETTER'S ROBERT NATALE SAYS THERE JUST WASN'T ANY REAL SPONSORSHIP FOR THE STOCK AND I'M GETTING LESS FAVORABLE TOWARD RESTAURANT STOCKS ANYWAY NATHAN'S WAS UNDERWRITTEN SOLELY BY LADENBURG THALMANN AND DIDN'T ATTRACT INTEREST ASIDE FROM THE LADENBURG ANALYST ROGER LIPTON MR LIPTON AS MIGHT BE EXPECTED HAS A BUY RATING ON THE STOCK IPO EXPERTS ADVISE SMALL INVESTORS TO SHY FROM THE HOT IPOS AND INSTEAD CONSIDER THE ONES THAT HAVE FALLEN TO ATTRACTIVE PRICES MONTHS AFTER THEIR LAUNCH NATHAN'S IS TRADING AT 13 BELOW ITS IPO PRICE THE STOCK TRADES AT A HARDLY OUTRAGEOUS 20 TIMES PROJECTED EARNINGS FOR THE YEAR ENDING IN MARCH BASED ON ESTIMATES OF 39 CENTS A SHARE AND 15 TIMES THE FOLLOWING YEAR'S PROJECTED EARNINGS NATHAN'S PLANS TO WOO THE INVESTMENT COMMUNITY STARTING NEXT YEAR BUT SO FAR IT IS TAKING A LOW PROFILE SAYS PRESIDENT WAYNE NORBITZ FROM HIS OFFICE IN WESTBURY NY I WANT TO MAKE SURE WE FIRST SHOW STEADY QUALITATIVE GROWTH THERE ARE 169 NATHAN'S OUTLETS INCLUDING FRANCHISES JUST 15 SITES ARE COMPANYOWNED INDEED SOME POTENTIAL INVESTORS HAVE BEEN PUT OFF THAT NATHAN'S MANAGEMENT HASN'T BUILT STORES AS QUICKLY AS HOPED BUT PART OF THE REASON IS THAT NATHAN'S IS GOOD AT HOLDING OUT FOR BETTER LEASE TERMS ALSO THERE HAS BEEN TEMPORARY SELLING PRESSURE ON THE STOCK FROM ORIGINAL PREIPO INVESTORS WHO AREN'T PART OF CURRENT MANAGEMENT WE'RE STILL GOING TO SEE SOME OF IT WARNS MR NORBITZ CITING A SALE OF 100000 SHARES RECENTLY BY THE GROUP ANOTHER RISK IN THE STOCK IS THAT AMERICA IS SUPPOSEDLY ON A HEALTH KICK HOT DOGS AND FRIES ARE RELATIVELY HIGH IN FAT CONTENT AS THE NATHAN'S PROSPECTUS WARNS DRYLY BUT EVEN THAT RISK COULD BE OVERBLOWN AMERICANS ARE BUYING RECORD AMOUNTS OF BACON AND SEEM TO BE BACKSLIDING IN THEIR EAT HEALTHY DRIVES AFTER ALL MCDONALD'S STOCK JUST HIT A HIGH WHAT'S GOOD FOR THE BURGER MAY BE GOOD FOR THE HOT DOG NATHAN'S OPENED ON CONEY ISLAND IN 1916 AND STILL HAS THAT ORIGINAL OUTLET BUT SAYS MR NORBITZ THAT'S THE PAST OF NATHAN'S WE'RE SEEING A DETERIORATION IN SALES AND PROFITS OF THE CONEY ISLAND AND OTHER ORIGINAL STORES THE REAL GROWTH WILL BE IN NEW OUTLETS NATHAN'S PLANS 13 NEW COMPANYOWNED RESTAURANTS IN THE NEW YORK AREA WHERE ITS NAME IS WELLKNOWN NATHAN'S ALSO IS IN DISCUSSIONS TO EXPAND TO CALIFORNIA BECAUSE OF ALL THE DISPLACED NEW YORKERS THERE SAYS MR NORBITZ 9312080031 931208 GLUT OF NEW REIT ISSUES FORCES SOME POSTPONEMENTS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS EAGER TO SNAP UP INITIAL OFFERINGS OF REALESTATE INVESTMENT TRUSTS EARLIER THIS FALL NOW ARE CHOKING ON THE NEARLY 3 BILLION IN NEW ISSUES SCHEDULED FOR EARLY THIS MONTH UNDERWRITERS HAVE BEEN FORCED TO POSTPONE THE OFFERINGS OF THREE SHOPPINGCENTER DEVELOPERS MACERICH CO OF LOS ANGELES GLIMCHER REALTY TRUST OF COLUMBUS OHIO AND JP REALTY OF SALT LAKE CITY IN MEETINGS WITH POTENTIAL INVESTORS THEY SIMPLY COULDN'T LINE UP ENOUGH BUYERS AT FAVORABLE PRICES VETERAN INVESTORS SAY IN ADDITION PRIME RETAIL INC OF CHICAGO POSTPONED ITS OFFERING UNTIL NEXT YEAR BEFORE THE MARKETING EFFORT BEGAN WALL STREET'S UNDERWRITING MACHINE IS MORE EFFICIENT AT DELIVERING PRODUCT THAN INVESTORS ARE AT ABSORBING WHAT'S BEEN THROWN AT THEM SAID BRUCE GARRISON A REIT ANALYST AT KIDDER PEABODY & CO EVEN IF THE BOND MARKET HAD NOT TURNED DOWN WHEN IT DID THERE WAS CLEARLY TOO MUCH PRODUCT SAID MIKE KIRBY AN ANALYST WITH GREEN STREET ADVISORS OF NEWPORT BEACH CALIF IT WAS LIKE PUSHING A PIG THROUGH A SNAKE THE DEMAND FOR REITS IS SENSITIVE TO THE MOVEMENT OF LONGTERM INTEREST RATES WHEN THE GOVERNMENTBOND MARKET SLUMPED ABOUT A MONTH AGO AND LONGTERM INTEREST RATES BEGAN TO EDGE UP THE DIVIDENDS OF 7 AND ABOVE OFFERED BY MOST NEW REITS BEGAN TO LOOK LESS ATTRACTIVE TO INVESTORS YESTERDAY THE TREASURY'S BENCHMARK 30YEAR BOND YIELDED 616 AFTER POSTING A TOTAL RETURN OF MORE THAN 20 FOR THE FIRST 10 MONTHS OF 1993 EQUITY REIT SHARES BEGAN TO TRADE DOWN IN NOVEMBER THEY FELL NEARLY 6 RECENT OFFERINGS HAVE BEEN EQUITY REITS WHICH OWN PROPERTY RATHER THAN MORTGAGES MANY OF THE YIELDORIENTED MUTUAL FUNDS THAT WERE NEWCOMERS TO THE REIT MARKET SUCH AS UTILITY FUNDS BEGAN TO SELL THEIR SHARES TO SATISFY REDEMPTION REQUESTS A LOT OF FIRMS WERE BUYING THESE STOCKS BECAUSE THEY WERE PERFORMING WELL NOT BECAUSE THEY KNEW WHAT THEY WERE BUYING SAID MR GARRISON WHEN REDEMPTION REQUESTS CAME IN THEY OFTEN SOLD THE REALESTATE STOCKS FIRST AS A RESULT UNDERWRITERS OF FUTURE OFFERINGS MAY HAVE TO OFFER INVESTORS HIGHER RETURNS THAN THEY PLANNED MACERICH DIDN'T WANT TO PRICE IN AN UNSTABLE MARKET SAID RAYMOND MIKULICH HEAD OF THE REALESTATE INVESTMENT BANKING GROUP AT LEHMAN BROTHERS INC LEAD UNDERWRITER OF THE DEAL SMART BUSINESSMEN DON'T PRICE INTO A VOLATILE MARKET UNDERWRITERS WERE ALSO RELUCTANT TO PRESS AHEAD IF SHARE PRICES WERE LIKELY TO DROP IMMEDIATELY AFTER THE OFFERING AS HAS OCCURRED WITH SOME RECENT DEALS GETTING A DEAL DONE THAT DOESN'T TRADE WELL IS NOT IN THE INTEREST OF ANYONE SAID STEVEN KANTOR WHO RUNS THE REALESTATE INVESTMENT BANKING GROUP AT PAINEWEBBER INC LEAD UNDERWRITER OF THE POSTPONED GLIMCHER OFFERING UNDERWRITERS FOR PRIME RETAIL INDICATED IT POSTPONED ITS OFFERING SO THAT IT COULD APPROACH INVESTORS USING THE COMPANY'S YEAREND RESULTS THE POSTPONEMENTS ARE EXPECTED TO COMPLICATE MATTERS FOR THE 20 OTHER REIT OFFERINGS CURRENTLY IN REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION IF YOU PUT OFF EVERYTHING THAT WAS SCHEDULED IN DECEMBER INTO JANUARY WHICH WAS ALREADY A CROWDED MONTH I DON'T THINK YOU'VE SOLVED THE PROBLEM SAID MR KIRBY ANALYSTS EXPECT UNDERWRITERS TO BECOME MORE SELECTIVE ABOUT FUTURE OFFERINGS THE BAR WILL BE RAISED BY INVESTMENT BANKERS THAT HAVE FOUND IT HARD TO GET REITS SOLD SAID MR GARRISON 9312080030 931208 FEDERAL CENTER VENTURE GETS A US CONTRACT TO RUN OFFICE PROJECT WASHINGTON THE GENERAL SERVICES ADMINISTRATION AWARDED A CONTRACT VALUED AT AS MUCH AS 42 MILLION TO FEDERAL CENTER ASSOCIATES TO PROVIDE MANAGEMENT SERVICES FOR A FEDERAL OFFICE COMPLEX TO BE DEVELOPED HERE OVER THE NEXT 20 YEARS GSA ADMINISTRATOR ROGER JOHNSON SAID THE COMPANY WILL PROVIDE OVERALL COORDINATION AND INTEGRATION OF A FULL RANGE OF PROFESSIONAL SERVICES TO DEVELOP THE SOUTHEAST FEDERAL CENTER INCLUDING GENERAL MANAGEMENT DESIGN AND CONSTRUCTION MANAGEMENT FCA IS A JOINT VENTURE OF JBG COS OLYMPIA & YORK COS USA AND MORSE DIESEL INTERNATIONAL OTHER CONSULTING FIRMS COLLABORATING WITH FCA INCLUDE FLORANCE EICHBAUM ESOCOFF KING HARTMANCOX WALLACE ROBERTS & TODD PARSONS BRINKERHOFF QUADE & DOUGLAS INC AND JERDE PARTNERSHIP GSA PLANS TO DEVELOP THE SOUTHEAST FEDERAL CENTER INTO AN OFFICE AND RETAIL COMPLEX THAT EVENTUALLY WILL ACCOMMODATE 23000 FEDERAL WORKERS IN 56 MILLION SQUARE FEET OF OFFICE SPACE THE CENTER WILL BE DEVELOPED IN PHASES WITH THE CURRENT AND INITIAL PHASE TARGETED FOR COMPLETION BY THE YEAR 2000 THE PROJECT IS ONE OF 200 FEDERAL CONSTRUCTION PROJECTS NOW BEING REVIEWED BY GSA AS PART OF ITS TIMEOUT AND REVIEW INITIATIVE 9312080029 931208 DARK PROPHECY NEW TEST TELLS WHOM A CRIPPLING DISEASE WILL HIT AND WHEN GENE RESPONSIBLE FOR ATAXIA HAS SAME FLAW AS THOSE CAUSING SOME CANCERS THE STUTTER' IN THE DNA BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL AMY JO SNIDER A COLLEGE SENIOR HAS PUT HER CAREER PLANS AND ROMANTIC LIFE ON HOLD UNTIL SHE SETTLES A GNAWING QUESTION ABOUT HER GENETIC LEGACY DURING HER CHRISTMAS BREAK THE CHARLESTON SC STUDENT PLANS TO BE TESTED FOR A GENE THAT CAUSES ATAXIA A DISEASE WITHOUT A CURE THAT DESTROYS THE BRAIN CELLS GOVERNING MUSCLE CONTROL THE DISORDER CRIPPLED AND ULTIMATELY KILLED HER FATHER IN MIDDLE AGE BECAUSE OF A RECENT BREAKTHROUGH IN GENETIC RESEARCH THE 21YEAROLD MISS SNIDER WILL BE ABLE TO FIND OUT WHETHER SHE INHERITED THE DISEASE AND IF SO HOW SOON AND HOW HARD ATAXIA MAY STRIKE HER I WANT TO BE TESTED BEFORE I START TO SHOW SYMPTOMS SHE SAYS UNFLINCHINGLY I'M GRADUATING IN MAY AND I HAVE TO START PLANNING MY LIFE AS AGONIZING AS THE KNOWLEDGE MIGHT BE SHE SAYS THE UNCERTAINTY IS WORSE IF I'M IN LIMBO IT'S NOT FAIR TO PEOPLE AROUND ME SHE SAYS I CAN'T DEAL WITH NOT KNOWING IN THE IMMEDIATE YEARS AHEAD MILLIONS OF PEOPLE WILL FACE SIMILAR DILEMMAS AS RESEARCHERS CONTINUE TO DISCOVER THE FLAWS IN HUMAN GENES THAT CAUSE DISEASES THE GENE RESPONSIBLE FOR ATAXIA WAS IDENTIFIED EARLIER THIS YEAR BY HARRY ORR AT THE UNIVERSITY OF MINNESOTA IN MINNEAPOLIS AND HUDA ZOGHBI AT THE BAYLOR COLLEGE OF MEDICINE IN HOUSTON THE RESEARCHERS THEN MADE ANOTHER SIGNIFICANT DISCOVERY THE GENE KNOWN AS SCA1 HAS A FLAW A STRIKINGLY VISIBLE MUTATION THAT IS COMMON TO OTHER INHERITED NEUROLOGICAL DISORDERS AS WELL AS SOME CANCERS THE MUTATION WHICH SCA1 SHARES WITH THE GENES THAT CAUSE NEUROLOGICAL DISEASES SUCH AS FRAGILE X HUNTINGTON'S DISEASE KENNEDY'S DISEASE AND MYOTONIC DYSTROPHY CONSISTS OF AN ABNORMAL REPETITION OF THREELETTER SEGMENTS OF THE GENETIC CODE A KIND OF GENETIC STUTTER THE ABILITY TO IDENTIFY THESE TRIPLET REPEATS MAY GREATLY ACCELERATE THE DISCOVERY OF OTHER GENES THAT CAUSE DISEASE AND PROVIDE CLUES TO THE MECHANICS OF INHERITED DISEASE LAST WEEK TWO RESEARCH TEAMS ANNOUNCED THAT THEY LOOKED FOR SUCH CODE REPEATS TO DISCOVER THE GENE THAT CAN LEAD TO CANCERS OF THE COLON UTERUS AND OVARY IN SHORT ORDER A BLOOD TEST WILL BE ABLE TO IDENTIFY THE ONE OUT OF EVERY 200 PEOPLE WHO CARRY THAT CANCER GENE BEARERS OF THE CANCER GENE MAY BE DISMAYED TO FIND OUT THEY HAVE IT BUT THEY WILL BE IN A POSITION TO GET CONSTANT MONITORING AND EARLY TREATMENT WHICH COULD SAVE THEIR LIVES FOR VICTIMS OF AN INCURABLE GENETIC DISEASE SUCH AS ATAXIA TESTING IS LIKE JUDGMENT DAY MOREOVER THEY FACE A NEW AND CHILLING KIND OF BIOLOGICAL PROPHECY BECAUSE THE NUMBER OF TRIPLET REPEATS WITHIN THE SCA1 GENE CAN BE USED TO FORECAST ROUGHLY WHEN AND HOW SEVERE THE ONSLAUGHT OF ATAXIA MAY BE THE DISCOVERY OF SCA1 CROWNED A FERVENT EIGHTYEAR COLLABORATION WITH A MOMENT OF QUIET EUREKA IN 1985 DR ZOGHBI IN HOUSTON WAS STUDYING ATAXIA IN A LARGE AFRICANAMERICAN FAMILY IN TEXAS WHILE DR ORR IN MINNEAPOLIS WAS TRACKING THE DISEASE IN MIDWESTERN CLANS MANY OF DUTCH DESCENT IN A FIELD RIFE WITH FIERCE RIVALRIES THE TWO RESEARCHERS SHUCKED THEIR EGOS AND SHARED THEIR DATA THE ZOGHBIORR COLLABORATION IS A SPECTACULAR STORY SAYS ROBERT CURRIER A NEUROLOGIST AND ATAXIA SPECIALIST AT THE UNIVERSITY OF MISSISSIPPI THEY COULD HAVE HIDDEN INFORMATION FROM EACH OTHER THEY COULD HAVE GONE AT IT TOOTH AND NAIL BUT THEY SHARED IT ALL THE WAY NEITHER LAB COULD MOVE THROUGH IT ALONE DR ORR EXPLAINS HE LIKENS THEIR GENE QUEST TO THE JOB OF A PLUMBER WHO GETS A SERVICE CALL FROM SOMEWHERE IN THE UNITED STATES AND THEN MUST LOCATE THE TROUBLE SPOT IN THE RIGHT STATE CITY BLOCK AND HOUSE FIRST THEY MAPPED THE AREA USING CERTAIN DNA MARKERS UNIQUE SEGMENTS OF GENETIC CODE NARROWING THEIR SEARCH TO A PART OF CHROMOSOME SIX THEN THEY CLONED GREAT SWATCHES OF GENES IN YEAST FOR FURTHER STUDY IN EARLY 1993 DRS ORR AND ZOGHBI DIVIDED UP THEIR TARGET AREA USING PROBES TO EXAMINE IT BIT BY BIT SMACK IN THE MIDDLE THEY SPIED A PECULIAR GENE IN WHICH THREE CHEMICAL BUILDING BLOCKS OF DNA CYTOSINE ADENINE AND GUANINE CAME TOGETHER TO SPELL OUT 'CAG' OVER AND OVER AGAIN IN A COMPARATIVE ANALYSIS OF DNA FROM HEALTHY AND SICK PEOPLE THEY FOUND NORMAL GENES HELD 25 TO 36 OF THESE CAG' REPEATS WHILE MUTANT GENES EXPANDED CONTAINING 43 TO 81 CAG REPEATS BLATANT TYPOS IN THE BIOLOGICAL BLUEPRINT THIS IS THE SORT OF THING YOU DREAM ABOUT AS A SCIENTIST HE SAYS WHEN IT HAPPENS IT LEAVES YOU SPEECHLESS THEIR ELATION WAS TEMPERED BY THE SOBER DISCOVERY THAT THEY COULD COUNT THE CAG' REPEATS AND PREDICT TO WITHIN A DECADE OR TWO HOW SOON AND HOW HARD THE DISEASE WOULD STRIKE THE MORE CAG REPEATS THE EARLIER AND MORE SEVERE THE ATAXIA WHILE THE LINK WASN'T PERFECT DR ORR SAYS YOU COULD CERTAINLY SAY WHETHER THE ATAXIA IS GOING TO BE A JUVENILE CASE A MIDADULT CASE OR A LATEADULT CASE WE WERE AMAZED BY IT SAYS DR ZOGHBI I DECIDED TO PUT IT ON A GRAPH WHEN I SAW WHAT IT LOOKED LIKE I SAID OH MY GOODNESS' IT WAS CHILLING SCIENTISTS HAD EARLIER OBSERVED LINKS BETWEEN SUCH TRIPLET REPEATS AND TIME OF DIAGNOSIS IN HUNTINGTON'S DISEASE BUT THESE EARLIER LINKS WERE NOT AS CLEARLY PREDICTIVE AS THE ONES FOUND BY DRS ORR AND ZOGHBI SAYS C THOMAS CASKEY A NOTED BAYLOR GENETICIST THEIR DATA IS BEAUTIFUL THE GROWING SIGNIFICANCE OF TRIPLET REPEATS IN HUMAN GENETICS HAS HELPED SOLVE A PUZZLE THAT HAS LONG STUMPED CLASSICAL GENETICISTS SCHOOLED IN THE TRADITION OF THE MONK MENDEL WITH HIS SWEET PEAS SINCE GENES WERE SUPPOSED TO BE STABLE HOW COULD INHERITED DISEASES WORSEN FROM GENERATION TO GENERATION ONE ANSWER MUTATIONS THAT GROW IN THE SCA1 GENE RESEARCH HAS SHOWN THAT THE NUMBER OF TRIPLE REPEATS CAN INCREASE FROM GENERATION TO GENERATION TRIGGERING A WORSENING OF THE ILLNESS THE CONCEPT THAT GENES CAN EXPAND CAUSING INCREASINGLY SEVERE DISEASE IS A PHENOMENON THAT'S NEW TO US SAYS ARNOLD GALE A NEUROLOGIST AND SPOKESMAN FOR THE MUSCULAR DYSTROPHY ASSOCIATION IT'S GRATIFYING AND A BIT ALARMING TO FIND FIVE DISEASES POP UP WITH THIS SAME GENETIC MECHANISM ADDS DAVID NELSON ANOTHER BAYLOR GENETICIST BEYOND LINKING SCA1 WITH THE RETARDATION OF FRAGILE X THE MOVEMENT DISORDER AND DEMENTIA OF HUNTINGTON'S AND THE MUSCULAR DEGENERATION OF KENNEDY'S AND MYOTONIC DYSTROPHY AND WITH COLON CANCER EXPERTS FEEL MORE SUCH GENES MAY SOON BE UNEARTHED I CAN'T BEGIN TO TELL YOU HOW MUCH EXCITEMENT THERE IS FINALLY AFTER ALL THESE YEARS THERE IS HOPE FOR BETTER DIAGNOSIS AND TREATMENT SAYS DONNA GRUETZMACHER SPOKESWOMAN FOR THE NATIONAL ATAXIA FOUNDATION WHICH REPRESENTS ABOUT 150000 PATIENTS SUFFERING FROM 60 TYPES OF ATAXIA THERE ARE NO FIRM FIGURES ON HOW MANY PEOPLE SUFFER FROM SCA1 ATAXIA WHICH OFTEN RESULTS IN COMPLETE DISABILITY AND DEATH I'D LIKE THEM TO FIND THE GENE AND REMOVE IT CUT IT OUT SO I WOULD BE FINE SAYS TEREESS BASTION A 30YEAROLD MARKETING SPECIALIST IN LONG BEACH CALIF MS BASTION LOST HER MOTHER AND BROTHER TO ATAXIA BEFORE THE DISORDER UNHINGED HER OWN SENSE OF BALANCE HER WISH FOR A PROCEDURE TO DISARM THE ATAXIA GENE SEEMS A LONG SHOT AT BEST THE NEURONS TARGETED BY ATAXIA ARE TUCKED AWAY IN THE CEREBELLUM AND BRAIN STEM BEYOND THE REACH OF CURRENT GENETHERAPY TOOLS SAYS DR ORR HE IS MORE OPTIMISTIC ABOUT DRUG THERAPY HE AND DR ZOGHBI ARE GENETICALLY ENGINEERING A MOUSE STRAIN TO STUDY HOW THE SCA1 GENE PRODUCES A PROTEIN THAT KILLS BRAIN CELLS IF SUCH A PROTEIN IS FOUND RESEARCHERS MIGHT DESIGN MOLECULES TO BLOCK IT UNTIL SUCH DESIGNER DRUGS ARE DEVISED THE SCA1 GENE TEST ACTS AS A KIND OF BIOLOGICAL CRYSTAL BALL RATHER THAN WAITING FOR LOVED ONES TO STUMBLE AND SLUR THEIR SPEECH THE FIRST SYMPTOMS OF ATAXIA FAMILIES AT RISK CAN BE SCREENED BUT THE TEST MAY SIMPLY REPLACE FEAR OF THE UNKNOWN WITH FEAR OF THE KNOWN A LOT OF PEOPLE ARE SCARED TO FIND OUT PUT YOURSELF IN THEIR PLACE SAYS JIM DEVLIN LEADER OF AN ATAXIA SUPPORT GROUP IN MARINA DEL REY CALIF WHEELCHAIRBOUND AND FIERCELY ARTICULATE THE 57YEAROLD MR DEVLIN FORCES OUT A PAINFUL QUESTION IF I WERE YOUR BROTHER HE ASKS WOULD YOU WANT TO KNOW FOR THOSE WITHOUT SYMPTOMS A GENETIC PROPHECY LIKE SCA1 RESEMBLES AN EVIL SPELL FROM A FAIRY TALE FOR THESE PEOPLE THE SPELL IS CAST SAYS LARRY SCHUT A MINNEAPOLIS NEUROLOGIST WHOSE FAMILY TREE WAS BLIGHTED BY ATAXIA IT MAY BE 20 OR 30 YEARS BUT THEY WILL GET IT CAREER FAMILY AND INSURANCE DECISIONS HANG IN THE BALANCE I LIKEN IT TO TELLING SOMEONE THEY HAVE AN HIVPOSITIVE BLOOD TEST BUT NO SIGNS OF AIDS SAYS DR SCHUT WE'RE DEALING WITH PEOPLE WHO ARE PERFECTLY NORMAL BUT WHO WILL BECOME ILL YOU DON'T KNOW WHO'S GOING TO JUMP OFF THE BRIDGE OR WHO WILL TAKE IT WELL THAT'S WHY DR CURRIER IN MISSISSIPPI APPROACHES SCREENING GINGERLY TEN YEARS AGO LONG BEFORE A PRECISE GENE TEST WAS AVAILABLE HE GAVE A GIFTED YOUNG GUITARIST A ROUGH PROGNOSIS OF ATAXIA BASED ON OLDER TISSUETYPING TECHNOLOGY STILL HEALTHY THE YOUTH TOOK IT STOICALLY THEN LATER FIRED A GUN INTO HIS CHEST EMOTIONAL TURBULENCE UNLEASHED BY TESTING CAN REND FAMILIES IN A RECENTLY TESTED PACIFIC COAST CLAN ONE FAMILY MEMBER WHO HAS THE GENE LASHED OUT AT RELATIVES WHO TESTED NEGATIVE ACCUSING THEM OF COLLUSION WITH RESEARCHERS SUCH RUPTURES ARE VERY POIGNANT AND VERY PREDICTABLE SAYS NANCY WEXLER A HUNTINGTON'S EXPERT IMAGINE THE RIFTS IN THE NUCLEAR FAMILY IT'S EXPLOSIVE PEOPLE WHO ARE UNAFFECTED FEEL GUILTY PEOPLE WHO ARE AFFECTED FEEL ENRAGED SHE ADDS PRESYMPTOMATIC SCREENING NEEDS TO BE DONE WITH EXTREME CAUTION AND EXTENSIVE COUNSELING JOSEPH MARTIN A NEUROLOGIST WHO IS CHANCELLOR OF THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO BELIEVES THAT ABSENT TREATMENT ONLY A MINORITY OF PEOPLE WILL WANT TO KNOW JANE BLAKELY A TELEPHONE COMPANY EMPLOYEE IN TACOMA WASH WAS ONE OF THAT MINORITY A SINGLE WOMAN OF 45 WHO HAS SPENT THE LAST DOZEN YEARS CARING FOR AN ELDERLY MOTHER WITH ATAXIA SHE SAYS I WANTED TO KNOW WE HAD TO DO SOME FAMILY AND FINANCIAL PLANNING SO WHEN THE TEST BECAME AVAILABLE THIS PAST SUMMER MS BLAKELY SUBMITTED HER BLOOD SAMPLE AND GOT GOOD NEWS MINE WAS NORMAL I WAS JUST ECSTATIC SHE SAYS BUT HER RELIEF IS BITTERSWEET I CHOSE NOT TO HAVE CHILDREN I SHIED AWAY FROM ANY INVOLVEMENTS SHE SAYS HAD SHE KNOWN HER GENETIC FATE SOONER SHE ADDS I MIGHT HAVE ACTED DIFFERENTLY CONVERSELY SOME ATAXIA PATIENTS NOW ARE CHOOSING TO CONCEIVE CHILDREN ONLY TO FACE A PRENATAL TESTING DILEMMA IN WAYNESBORO MISS PAM SHIMA A COURT REPORTER WITH MILD ATAXIA WHO ALREADY HAD TWO SONS BECAME PREGNANT AGAIN THIS YEAR SHE UNDERWENT PRENATAL SCREENING BUT MISCARRIED JUST AFTER HER FETUS TESTED NEGATIVE FOR THE GENE MRS SHIMA NOW SAYS SHE WON'T TEST HER SONS AGED TWO AND 13 LIFE ABOUNDS WITH RISKS SHE REASONS WHEN MY TEENAGER GETS BEHIND THE WHEEL OF A CAR AND SAYS SEE YOU AFTER MIDNIGHT' THEN I'LL BE WORRIED MORE SO THAN WHETHER HE'LL BE IN A WHEELCHAIR AT AGE 45 FOR NOW SHE ADMITS I'M MORE WORRIED ABOUT WHETHER I'LL BE AROUND TO SEE MY YOUNGEST SON PLAY BASEBALL IN LONG BEACH CALIF DAWN DIZON A 31YEAROLD AIRCRAFT ENGINEER IS HAPPILY EXPECTING HER FIRST CHILD IN FEBRUARY SHE SUFFERS FROM EARLY ATAXIA AND STRIVES TO KEEP IT IN CHECK WITH TREMORCONTROLLING DRUGS AND EXERCISE BUT SHE DIDN'T UNDERGO PRENATAL SCREENING OF HER FETUS OUR CHILD HAS A 5050 CHANCE OF GETTING IT SHE CONCEDES BUT SHE THINKS THAT BY THE TIME IT'S OLD ENOUGH TO HAVE SYMPTOMS THERE WILL PROBABLY BE A TREATMENT BESIDES SHE SAYS LIFE IS A GIFT EVEN WHEN ILLNESS IS PART OF THE LEGACY I WOULDN'T HAVE WANTED MY PARENTS NOT TO HAVE ME JUST BECAUSE I HAPPEN TO HAVE ATAXIA PREVIEWING ONE'S GENETIC FATE STRIKES SOME AS A WAY TO RATIONAL ORDERED EXISTENCE AND OTHERS AS A ROAD TO SPIRITUAL RUIN I'M VERY SURE I CAN DEAL WITH THE KNOWLEDGE SAYS MS SNIDER THE CHARLESTON COLLEGE STUDENT OF HER FORTHCOMING TEST IT'S NOT GOING TO RUIN MY LIFE BUT IT WILL CHANGE IT TESTING POSITIVE MAY MEAN FORGOING HAVING CHILDREN OR GIVING UP HER DREAM OF BECOMING A SPEECH THERAPIST ABOVE ALL SHE ACKNOWLEDGES IT MAY SHORTEN HER LIFE IF I KNOW I'M GOING TO BE CONTRACTING SYMPTOMS SHE DECLARES STOUTLY I'LL HAVE TO ACHIEVE THINGS SOONER BUT TO WANDA COX A LOS ANGELES COMPUTER SPECIALIST WHO WAS SURPRISED BY ATAXIA WHEN SHE FELL OFF HER BIKE AT AGE 40 A PREDICTIVE TEST MIGHT HAVE HURT MORE THAN IT HELPED IF YOU'RE TOLD YOU'LL BE SICK BY AGE 40 YOU'LL LOOK FOR SYMPTOMS SHE SAYS ARGUING THAT DETERMINISM LEADS TO DESPAIR IF I KNEW I WAS GOING TO BE HIT BY A CAR NEXT WEEK LIFE WOULD BE IRREVOCABLY CHANGED SAYS MS COX DO I WANT TO KNOW HELL NO 9312080028 931208 BUSINESS BRIEF HEXCEL CORP DEFENSE CONTRACTOR FILES FOR BANKRUPTCY PROTECTION HEXCEL CORP OF PLEASANTON CALIF FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION THE MAKER OF SPECIAL COMPOSITES RESINS AND OTHER MATERIALS USED BY THE MILITARY AND BY AEROSPACE COMPANIES HAS BEEN IN A TAILSPIN BECAUSE DEFENSE SPENDING ON SYSTEMS THAT USE ITS MATERIALS HAS PLUNGED IN RECENT YEARS HEXCEL SAID THE BANKRUPTCY FILING MADE IN SAN FRANCISCO ALLOWS THE COMPANY TO RESTRUCTURE ITS FINANCIAL OBLIGATIONS WHILE CONTINUING TO OPERATE IT SAID THE FILING BECAME NECESSARY AFTER THE COLLAPSE OF NEGOTIATIONS WITH LENDERS OVER A REORGANIZATION PLAN THAT ENVISIONED A 40 MILLION EQUITY INFUSION FROM AN UNDISCLOSED INVESTOR AND A RESTRUCTURING OF CERTAIN DEBT FOR THE NINE MONTHS ENDED SEPT 30 HEXCEL HAD A NET LOSS OF 563 MILLION OR 768 A SHARE INCLUDING A 50 MILLION RESTRUCTURING CHARGE REVENUE FOR THE NINE MONTHS WAS 260 MILLION 9312080027 931208 STONE CONTAINER UNIT SAYS ITS PUBLIC OFFERING TO TOTAL 3495 MILLION MONTREAL STONECONSOLIDATED CORP SAID ITS INITIAL PUBLIC OFFERING OF UNITS WILL TOTAL 462 MILLION CANADIAN DOLLARS US3495 MILLION WITH EACH UNIT PRICED AT C2800 AND COMPRISING 100 COMMON SHARES AT C14 A SHARE AND 14 CONVERTIBLE DEBENTURES AT C100 EACH THE SHARES REPRESENT 254 OF STONECONSOLIDATED'S COMMON STOCK OUTSTANDING THE 10YEAR DEBENTURES PAY 8 INTEREST ANNUALLY AND ARE CONVERTIBLE BEGINNING NEXT JUNE 30 INTO 6211 COMMON SHARES PER DEBENTURE REPRESENTING A CONVERSION PRICE OF C1610 A COMMON SHARE THE UNDERWRITING SYNDICATE IS LED BY SCOTIAMCLEOD INC AND BURNS FRY LTD SEPARATELY STONECONSOLIDATED SAID IT WILL ISSUE US225 MILLION IN SENIOR SECURED NOTES MATURING DEC 15 2000 AND PAYING 1025 INTEREST SALOMON BROTHERS INC IS UNDERWRITING THE NOTES BOTH TRANSACTIONS ARE SCHEDULED TO CLOSE DEC 17 STONECONSOLIDATED A MONTREAL NEWSPRINT MAKER IS A UNIT OF STONE CONTAINER CORP CHICAGO 9312080026 931208 BUSINESS BRIEF FREEPORTMCMORAN COPPER & GOLD PLAN IS SET TO SELL GENERATORS AT INDONESIAN MINING UNIT FREEPORTMCMORAN COPPER & GOLD INC SAID ITS INDONESIAN SUBSIDIARY SIGNED A LETTER OF INTENT TO SELL 200 MILLION OF ELECTRICALGENERATION ASSETS TO A VENTURE THAT WILL SELL POWER TO FREEPORT'S MINING OPERATIONS UNDER THE AGREEMENT DUKE ENERGY CORP AND POWERLINK CORP EACH WILL OWN 30 OF THE VENTURE AS WILL FREEPORT'S INDONESIAN UNIT AN INDONESIAN INVESTOR WILL OWN THE REMAINING 10 DUKE ENERGY IS AN AFFILIATE OF DUKE POWER CO CHARLOTTE NC POWERLINK IS A SUBSIDIARY OF CANADA'S NORTHSTAR ENERGY CORP THE VENTURE WILL ACQUIRE DIESELPOWERED GENERATORS IN TWO PHASES IT WILL PURCHASE EXISTING ASSETS IN MID1994 FOR MORE THAN 100 MILLION THEN PURCHASE ASYETUNBUILT ASSETS IN MID1995 THE COMPANY SAID IT IS SELLING THE ASSETS TO IMPROVE CASH FLOW AT THE COPPER AND GOLD MINES IN IRIAN JAYA INDONESIA 9312080025 931208 BUSINESS BRIEF MEDICAL CARE AMERICA INC BOARD MEETS TO CONSIDER SUITOR'S REQUEST FOR DATA UNDER INCREASING PRESSURE FROM SHAREHOLDERS THE BOARD OF MEDICAL CARE AMERICA INC WILL MEET TODAY TO CONSIDER A REQUEST BY POTENTIAL SUITOR SURGICAL CARE AFFILIATES INC FOR AN INSIDE LOOK AT THE COMPANY'S FINANCIAL RECORDS THE ANNOUNCEMENT FOLLOWS A MONDAY MEETING IN NEW YORK BETWEEN DONALD STEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MEDICAL CARE IN DALLAS AND JOEL GORDON CHAIRMAN AND CHIEF EXECUTIVE OF SURGICAL CARE A SPOKESMAN FOR SURGICAL CARE IN NASHVILLE TENN SAID THE COMPANY WAS AS EAGER AS EVER TO PURSUE ITS MERGER PROPOSAL THE DECISION ISN'T AN EASY ONE FOR MEDICAL CARE WHILE A SIZABLE PORTION OF THE COMPANY'S SHAREHOLDERS APPARENTLY SEE SURGICAL CARE AS AN ATTRACTIVE POTENTIAL MERGER PARTNER IT IS ALSO A CURRENT COMPETITOR THE TWO COMPANIES ARE THE LARGEST US OPERATORS OF OUTPATIENTSURGERY CENTERS 9312080024 931208 ST JUDE MEDICAL AGREES TO BUY ELECTROMEDICS IN 90 MILLION DEAL ST PAUL MINN ST JUDE MEDICAL INC SAID IT REACHED A DEFINITIVE AGREEMENT TO ACQUIRE ELECTROMEDICS INC OF ENGLEWOOD COLO IN A CASH AND STOCK TRANSACTION VALUED AT 90 MILLION IN THE TRANSACTION ST JUDE SAID ELECTROMEDICS SHARES CAN BE EXCHANGED FOR EITHER CASH OF 6375 A SHARE OR ST JUDE COMMON STOCK AT A RATE OF 02287 SHARES FOR EACH ELECTROMEDICS COMMON SHARE ELECTROMEDICS SHAREHOLDERS WILL HAVE THE RIGHT TO CONVERT THEIR SHARES TO CASH ST JUDE COMMON STOCK OR A COMBINATION OF BOTH LAST MONTH ELECTROMEDICS WHICH MAKES BLOOD MANAGEMENT AND BLOOD CONSERVATION EQUIPMENT AND RELATED DISPOSABLE DEVICES RECEIVED AN ACQUISITION PROPOSAL FROM MEDTRONIC INC AT 6125 A SHARE IN CASH OR COMMON STOCK AFTER THE COMPANY HIRED DAIN BOSWORTH INC TO HELP IT CONSIDER ITS STRATEGIC ALTERNATIVES MEDTRONIC WOULDN'T COMMENT ON THE STATUS OF ITS PROPOSAL AND ELECTROMEDICS COULDN'T BE REACHED TO COMMENT ST JUDE A HEART VALVE MAKER SAID THE ACQUISITION WILL SIGNIFICANTLY INCREASE ITS PRESENCE IN THE OPENHEART SURGERY EQUIPMENT AND DISPOSABLES MARKET AND FITS WELL WITH ITS EXISTING PRODUCT OFFERINGS ELECTROMEDICS SAID THE TRANSACTION WITH ST JUDE WILL BE VERY BENEFICIAL AS THE COMPANY STRIVES TO BRING NEW PRODUCTS TO MARKET AND TO FURTHER PENETRATE THE WORLDWIDE OPENHEART SURGERY AND BLOOD PROCESSING/HANDLING MARKETS 9312080023 931208 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN MOST STATES WON'T ENACT BIG TAX INCREASES NEXT YEAR ANALYSTS PREDICT STRONGER ECONOMIC GROWTH GENERATES HIGHER STATE REVENUES REDUCING BUDGETARY WOES ALSO VOTERS ARE IN AN ANTIINCUMBENT MOOD SO RAISING TAXES WOULD BE ESPECIALLY RISKY SAYS STEVEN D GOLD DIRECTOR OF THE CENTER FOR THE STUDY OF THE STATES IN ALBANY NY THUS HE PREDICTS HARDLY ANY STATES WILL RAISE TAXES SIGNIFICANTLY IN 1994 STATE FINANCES GENERALLY LOOK MORE SOLID THAN THEY HAVE IN RECENT YEARS ACCORDING TO PRELIMINARY RESULTS OF A SURVEY BY THE NATIONAL CONFERENCE OF STATE LEGISLATURES BUT CALIFORNIA STILL FACES MAJOR HEADACHES AND MICHIGAN PROBABLY WILL RAISE SOME STATE TAXES TO REPLACE LOCAL PROPERTY TAXES FOR SCHOOLS GOLD PREDICTS STATETAX INCREASES IN 1993 SHRANK TO THEIR LOWEST LEVEL IN FIVE YEARS SOME STATES MAY CUT TAXES IN NEW JERSEY GOVELECT WHITMAN VOWS TO REDUCE THE STATE'S PERSONAL INCOME TAX RATE BY 30 OVER THREE YEARS GENEROSITY MAY BE ESPECIALLY REWARDING THIS MONTH CONSIDERING MAKING A LARGE GIFT TO YOUR CHILDREN GRANDCHILDREN OR ANYONE ELSE TO BE SAFE DO IT BEFORE DEC 31 BECAUSE CONGRESS MAY CHANGE THE RULES NEXT YEAR TAX ADVISERS WARN UNDER CURRENT LAW ANYONE CAN GIVE UP TO 10000 A YEAR TO ANYONE ELSE WITHOUT OWING ANY GIFT TAX YOU MAY PAY SOMEONE ELSE'S SCHOOL TUITION OR MEDICAL BILLS DIRECTLY WITHOUT HAVING THOSE PAYMENTS COUNT TOWARD THE 10000AYEAR LIMIT GIFTS TO CHARITY SHOULD ALSO BE MADE PROMPTLY TO NAIL DOWN 1993 INCOMETAX DEDUCTIONS DON'T WAIT UNTIL DEC 31 TO TELL A BROKER TO SEND SOME OF YOUR STOCK TO CHARITY ACT NOW AND ASK FOR CONFIRMATION THE SECURITIES WERE RECEIVED BY THE CHARITY IN 1993 ADVISES ROBERT GARNER OF ERNST & YOUNG DONORS ALSO MAY WANT TO ASK CHARITIES IF GIFTS MAY BE CHARGED ON A CREDIT CARD IF YOU CHARGE A GIFT NOW AND PAY NEXT YEAR YOU STILL CAN DEDUCT IT IN 1993 SAYS STANLEY BREITBARD OF PRICE WATERHOUSE LAWYERS WHO DON'T DIVULGE INFORMATION ABOUT SOME CLIENTS MAY FACE BIG FINES THE IRS IS TAKING ACTION AGAINST LAWYERS WHO DON'T DISCLOSE DETAILED INFORMATION ABOUT CLIENTS FROM WHOM THEY RECEIVE CASH FEES OF MORE THAN 10000 IN A SINGLE TRANSACTION OR IN TWO OR MORE RELATED TRANSACTIONS MANY LAWYERS RELY ON LAWYERCLIENT PRIVILEGE FOR NOT DISCLOSING ALL THE INFORMATION REQUIRED ON FORM 8300 BUT THE IRS SAYS SEVERAL COURT CASES SUPPORT ITS POSITION AND IT WILL CRACK DOWN ON LAWYERS WHO DON'T COMPLY IRS OFFICIALS SAID YESTERDAY THEY WILL BEGIN HITTING SOME LAWYERS WITH STIFF PENALTIES FOR INTENTIONAL DISREGARD OF THE RULES THAT PENALTY IS THE GREATER OF 25000 OR THE AMOUNT OF CASH RECEIVED IN EACH TRANSACTION NOT TO EXCEED 100000 IN FISCAL 1993 THE IRS ASSESSED 17 MILLION IN PENALTIES IN 1034 CASES INVOLVING NONLAWYERS THE IRS SAYS INFORMATION ON FORM 8300 HELPS IT DETECT NONFILING UNREPORTED INCOME AND MONEY LAUNDERING UNFAIR SOME LAWYERS REPLY GERALD LEFCOURT A NEW YORK LAWYER CALLS THIS A RADICAL CHANGE FROM PAST PRACTICE AND A TERRIBLE DEVELOPMENT WAIT A FEW WEEKS TO BUY THAT FANCY NEW LUXURY CAR AND SAVE UP TO 200 IN TAXES PEOPLE BUYING A NEW CAR THIS YEAR FOR MORE THAN 30000 OWE A 10 LUXURY TAX ON THE AMOUNT ABOVE 30000 BUT UNDER THE NEW TAX LAW SIGNED AUG 10 BY PRESIDENT CLINTON THE 1994 THRESHOLD RISES TO 32000 MORE PEOPLE FILE TAX RETURNS FOR THEIR HOUSEHOLD EMPLOYEES IN THE AFTERMATH OF ZOE BAIRD'S WOES EARLIER THIS YEAR THE IRS RECEIVED 13 MORE OF THESE RETURNS IN THIS YEAR'S FIRST HALF THAN IT DID A YEAR AGO SECONDQUARTER RETURNS ROSE NEARLY 10 TO ABOUT 422000 CONGRESS RECESSED WITHOUT EASING THE RULES BUT MAY DO SO NEXT YEAR STATE AND LOCAL GOVERNMENTS ISSUED A RECORD VOLUME OF TAXEXEMPT BONDS THIS YEAR TO TAKE ADVANTAGE OF LOWER INTEREST RATES THE PUBLIC SECURITIES ASSOCIATION ESTIMATES THAT 278 BILLION OF LONGTERM TAXFREE DEBT WAS ISSUED THIS YEAR UP FROM THE PREVIOUS RECORD OF 2294 BILLION LAST YEAR MORE BIG GIFTS OF ART STREAM IN TO MUSEUMS THANKS PARTLY TO THE NEW LAW KPMG PEAT MARWICK RECENTLY DONATED ITS CORPORATE COLLECTION OF AMERICAN CRAFTS TO THE RENWICK GALLERY OF THE NATIONAL MUSEUM OF AMERICAN ART AT THE SMITHSONIAN INSTITUTION PEAT MARWICK CITES THE NEW TAX LAW AS AN IMPORTANT FACTOR IN ITS DECISION NEW YORK'S METROPOLITAN MUSEUM OF ART HAS RECEIVED VALUABLE ART DONATIONS SINCE THE NEW LAW WAS SIGNED AUG 10 AND WILL GET MORE MAJOR GIFTS SOON SAYS ASHTON HAWKINS EXECUTIVE VICE PRESIDENT A PROVISION OF THE NEW LAW ENCOURAGES TAXPAYERS TO DONATE ART STOCKS BONDS REAL ESTATE AND OTHER PROPERTY THAT HAS INCREASED IN VALUE DONORS MAY DEDUCT A CHARITABLE GIFT'S FAIR MARKET VALUE NOT JUST ITS COST OR SOME OTHER BASIS WITHOUT WORRYING ABOUT THE ALTERNATIVE MINIMUM TAX UNDER THE OLD LAW MANY PEOPLE COULD DEDUCT ONLY THE GIFT'S COST THUS FINANCIAL PLANNERS URGED CLIENTS TO DELAY GIFTS UNTIL THE NEW LAW WAS SIGNED THE CHANGE IS ENORMOUSLY IMPORTANT FOR CHARITABLE GIVING SAYS G WILLIAM CLAPP OF BESSEMER TRUST BRIEFS TAXPAYERS EARMARKED 276 MILLION ON THEIR 1992 RETURNS FOR THE PRESIDENTIAL ELECTION CAMPAIGN FUND DOWN FROM 296 MILLION THE PREVIOUS YEAR AND A RECORD 41 MILLION ON 1980 RETURNS NO SHORTAGE OF WORK THE TAX COURT FACED A BACKLOG OF 38798 CASES AS OF OCT 31 BUT THAT WAS DOWN FROM 39644 THE PREVIOUS MONTH 9312080022 931208 BUSINESS BRIEF MEDCO CONTAINMENT SERVICES INC COMPANY WELLPOINT HEALTH SET JOINT PACT TO BUY FIRM WELLPOINT HEALTH NETWORKS INC AND MEDCO CONTAINMENT SERVICES INC SAID THEY REACHED AN AGREEMENT TO JOINTLY ACQUIRE PROFESSIONAL CLAIMS SERVICES INC FOR 24 MILLION PROFESSIONAL CLAIMS SERVICES KNOWN AS PROSERV IS A PHARMACEUTICAL BENEFITS MANAGEMENT AND BILLING COMPANY THAT IS A SUBSIDIARY OF BLUE CROSS AND BLUE SHIELD OF WESTERN NEW YORK INC WELLPOINT IS A MANAGED CARE COMPANY THAT IS A UNIT OF BLUE CROSS OF CALIFORNIA A NONPROFIT CONCERN IN WOODLAND HILLS CALIF MEDCO CONTAINMENT MONTVALE NJ IS A PROVIDER OF MANAGED PRESCRIPTION DRUG PROGRAMS WELLPOINT AND MEDCO ARE EQUAL PARTNERS IN THE PROPOSED ACQUISITION SLATED FOR COMPLETION BY THE END OF THE YEAR A WELLPOINT SPOKESMAN SAID 9312080021 931208 INTERNATIONAL BRIEF SIEBE PLC PRETAX PROFIT CLIMBED 17 IN SIX MONTHS TO SEPT 30 UK ENGINEERING CONCERN SIEBE PLC SAID THAT PRETAX PROFIT ROSE 17 IN THE SIX MONTHS ENDED SEPT 30 TO 942 MILLION 1417 MILLION THE COMPANY ALSO RAISED ITS DIVIDEND TO 366 PENCE 55 CENTS FROM 33275 PENCE FOR THE YEAREARLIER HALF SIEBE POSTED PRETAX PROFIT OF 803 MILLION SIEBE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BARRIE STEPHENS SAID THE RESULTS DEMONSTRATE THE WISDOM OF BUILDING UP OUR PRESENCE IN THE FASTGROWING PROCESS CONTROLS SECTOR AND IN THIS REGARD OUR US OPERATIONS ARE ESPECIALLY IMPORTANT NONUNITED KINGDOM SALES ACCOUNTED FOR 8276 MILLION OR 924 OF TOTAL GROUP SALES SIEBE SAID THE COMPANY ADDED THAT THE RESULTS INCLUDED A FULL SIX MONTHS' CONTRIBUTION FROM ITS GERMAN OPERATIONS EBERLE GMBH AND SCHMIDT ARMATUREN GESMBH ACQUIRED IN APRIL 9312080020 931208 WHAT'S NEWS WORLDWIDE THE US HAS CONCEALED OVER 200 NUCLEAR TESTS SINCE THE 1940S OFFICIALS SAID THE ENERGY DEPARTMENT LAUNCHING A NEW ERA OF OPENNESS ABOUT THE WEAPONS PROGRAMS SAID IT CONCEALED 204 UNDERGROUND BLASTS AT ITS NEVADA TEST SITE ABOUT ONEFIFTH OF TOTAL TESTS TO PREVENT THE FORMER SOVIET UNION FROM LEARNING ABOUT THE US ARSENAL THE DEPARTMENT ALSO PROVIDED DATA ABOUT 800 RADIATION TESTS ON HUMANS SOME OF WHOM WERE UNAWARE OF THE RISKS ENERGY SECRETARY O'LEARY SAID SHE WAS STUNNED TO LEARN THAT 18 CIVILIANS WERE INJECTED WITH PLUTONIUM IN THE 1940S TO DETERMINE WHAT DOSES WORKERS MIGHT BE EXPOSED TO SAFELY THE GOVERNMENT DISCLOSED THAT US STOCKPILES OF PLUTONIUM TOTAL 335 METRIC TONS STORED AT WEAPONS SITES IN WASHINGTON STATE SOUTH CAROLINA COLORADO IDAHO AND NEW MEXICO SURGEON GENERAL ELDERS SAID SHE BELIEVES THE LEGALIZATION OF ILLICIT DRUGS WOULD MARKEDLY REDUCE OUR CRIME RATE SHE SAID SOME COUNTRIES HAVE LEGALIZED DRUGS AND CUT THEIR CRIME RATES WITH NO INCREASE IN DRUG USE THE WHITE HOUSE SPOKESWOMAN RESPONDED BY TELLING REPORTERS THAT CLINTON DOESN'T SUPPORT LEGALIZING DRUGS MINE WORKERS AND COAL FIRMS REACHED A TENTATIVE LABOR PACT THAT GUARANTEES JOBS TO UNITED MINE WORKERS MEMBERS IN EXCHANGE FOR RELAXED WORK RULES THE AGREEMENT COMES AFTER A SIXMONTH STRIKE THAT CAME TO INCLUDE 17700 WORKERS IN SEVEN STATES UNION MEMBERS ARE TO VOTE ON THE CONTRACT BY TUESDAY SOUTH AFRICAN BLACKS TOOK SEATS IN GOVERNMENT FOR THE FIRST TIME AS PART OF A MULTIRACIAL COUNCIL THAT WILL HAVE WIDE POWERS AHEAD OF DEMOCRATIC ELECTIONS ON APRIL 27 THE HISTORIC OCCASION ENDING 340 YEARS OF WHITE RULE PROMPTED A SYMBOLIC PROTEST BY ABOUT 30 RIGHTWING WHITES WHO SEIZED AN ABANDONED FORT OUTSIDE PRETORIA CLINTON ASSURED SOUTH KOREA'S PRESIDENT THAT THE US WOULDN'T BACK OFF IN ITS INSISTENCE THAT NORTH KOREA AGREE TO FULL INSPECTIONS OF ITS NUCLEAR PLANTS THE WHITE HOUSE SAID DURING A PHONE CONVERSATION THE LEADERS AGREED THAT NORTH KOREA'S LATEST PROPOSAL ON INSPECTIONS REMAINS INADEQUATE A LONE GUNMAN OPENED FIRE ABOARD A PACKED NEW YORK COMMUTER TRAIN DURING THE EVENING RUSH HOUR KILLING FOUR PASSENGERS AND WOUNDING 17 OTHERS POLICE SAID THE ASSAILANT WAS SUBDUED BY THREE PASSENGERS AND TAKEN INTO CUSTODY AFTER THE SHOOTING WHICH TOOK PLACE AT A LONG ISLAND RAIL ROAD STATION IN GARDEN CITY ARABS STONED A FUNERAL PROCESSION FOR TWO JEWISH SETTLERS IN THE WEST BANK DRAWING GUNFIRE FROM MOURNERS AND SOLDIERS SEPARATELY SECRETARY OF STATE CHRISTOPHER TOLD ISRAEL THAT SYRIA IS READY TO RESUME TALKS WITH THE ISRAELIS THE CLINTON ADMINISTRATION HAS AGREED TO LET SYRIA BUY THREE USMADE BOEING 727 COMMERCIAL JETS FROM KUWAIT A LOS ANGELES JUDGE SENTENCED DAMIAN WILLIAMS 20 TO 10 YEARS IN PRISON THE MAXIMUM SENTENCE IN THE BEATING OF A TRUCK DRIVER AND OTHER MOTORISTS AT THE START OF LAST YEAR'S RIOTS IN THE CITY THE JUDGE SAID WILLIAMS DESERVED THE HARSHEST POSSIBLE SENTENCE FOR SHOWING NO REMORSE SERBS AGAIN ARE BLOCKING THE DELIVERY OF CLOTHES AND OTHER WINTER SUPPLIES TO MILLIONS OF CIVILIANS IN BOSNIA DESPITE A RECENT PLEDGE TO ALLOW AID CONVOYS TO PASS UNHINDERED UN OFFICIALS SAID EIGHT HINDU POLITICIANS WERE ARRESTED AFTER CHALLENGING THE INDIAN GOVERNMENT TO TAKE THEM INTO CUSTODY OVER THE DESTRUCTION OF A 16THCENTURY MOSQUE IN AYODHYA A YEAR AGO THE TOP OFFICIALS OF THE NATIONALIST BHARATIYA JANATA PARTY WERE ARRESTED IN LUCKNOW CAPITAL OF UTTAR PRADESH STATE WHERE THE DISPUTED MOSQUE IS LOCATED BRAZIL UNVEILED A PLAN TO FIGHT RUNAWAY INFLATION BY CUTTING SPENDING BOOSTING TAXES AND GRADUALLY PHASING IN A NEW CURRENCY THE NATION'S STOCK MARKETS REACTED WITH SKEPTICISM CURRENTLY RUNNING AT 36 A MONTH INFLATION FOR ALL OF 1993 IS EXPECTED TO REACH 2600 BRAZIL'S HIGHEST RATE YET DIED DON AMECHE 85 VERSATILE LEADING MAN OF 1930S AND '40S FILMS WHOSE COMEBACK IN THE 1980S BROUGHT HIM AN ACADEMY AWARD MONDAY IN SCOTTSDALE ARIZ OF PROSTATE CANCER FELIX HOUPHOUETBOIGNY 88 IVORY COAST PRESIDENT WHO RULED 33 YEARS MAKING HIM AFRICA'S LONGESTSERVING LEADER IN ABIDJAN OF PROSTATE CANCER 9312080019 931208 WHAT'S NEWS BUSINESS AND FINANCE THE US AND THE EUROPEAN COMMUNITY REACHED AN AGREEMENT ON FARM TRADE THAT SEEMS ACCEPTABLE TO FRANCE ENABLING THEM TO DELIVER A BROAD IF INCOMPLETE TRADE AGREEMENT TO THE GLOBAL TALKS IN GENEVA BUT THE US AND EC COULDN'T RESOLVE THEIR DIFFERENCES OVER EC MOVIE QUOTAS AND SUBSIDIES FOR CIVILAIRCRAFT HUGHES AIRCRAFT PLANS TO BUILD A 660 MILLION SATELLITE SYSTEM THAT WOULD VAULT THE GM UNIT INTO THE US LONGDISTANCE TELEPHONE MARKET GM IS EXPECTED TO ANNOUNCE TODAY THAT IT IS CONSOLIDATING ITS NEARLY 1 BILLION MEDIABUYING ASSIGNMENT AT TWO AD AGENCIES OWNED BY INTERPUBLIC COX ENTERPRISES AND SOUTHWESTERN BELL AGREED TO FORM A PARTNERSHIP WITH 49 BILLION IN ASSETS THAT WILL EXPLORE CABLETV PHONE AND INTERACTIVE MEDIA IN EACH OTHER'S MARKETS THE FRENCH AND GERMAN STATEOWNED TELEPHONE COMPANIES ANNOUNCED PLANS FOR A JOINT VENTURE RJR NABISCO PLANS TO ELIMINATE 6000 JOBS OR 95 OF ITS WORK FORCE REFLECTING ITS CHAIRMAN'S GRIM VIEW OF THE DOMESTIC TOBACCO MARKET UNDERWRITERS POSTPONED NEW ISSUES OF REALESTATE INVESTMENT TRUSTS FOR THREE DEVELOPERS BECAUSE THEY COULDN'T GET ENOUGH BUYERS AT FAVORABLE PRICES INVESTORS ARE CHOKING ON THE NEARLY 3 BILLION IN NEW ISSUES SCHEDULED FOR EARLY THIS MONTH XEROX AGREED TO A 225 MILLION SETTLEMENT OF A CLASSACTION ANTITRUST SUIT ALLEGING IT SUPPRESSED COMPETITION IN THE SALE AND SERVICE OF PHOTOCOPIER AND PRINTER PARTS THE PLAINTIFFS SAID UAL AND ITS UNIONS APPEAR TO BE NARROWING THE PRICE GAP IN THE UNIONS' PLANS TO ACQUIRE A MAJORITY STAKE IN THE UNITED AIR CARRIER AMR EXPECTS TO REPORT A SIGNIFICANT LOSS FOR THE FOURTH QUARTER AND FULL YEAR BECAUSE OF LAST MONTH'S FLIGHT ATTENDANTS STRIKE AGAINST AMERICAN AIR THE DOW JONES INDUSTRIAL AVERAGE ROSE TO A RECORD AND BOND PRICES FELL THE AVERAGE GAINED 867 TO 371888 APPLE WILL PROCEED WITH PLANS TO BUILD A SERVICE CENTER IN WILLIAMSON COUNTY TEXAS IT WON FINANCIAL INCENTIVES FROM THE COUNTY WHICH INITIALLY OPPOSED THEM BECAUSE OF APPLE'S BENEFITS POLICY FOR HOMOSEXUALS HEINZ REPORTED A 25 JUMP IN PROFIT TO 1931 MILLION FOR ITS SECOND QUARTER BUT WITHOUT A GAIN ON THE SALE OF ASSETS ITS EARNINGS WOULD HAVE FALLEN LATE MORTGAGE PAYMENTS PLUNGED TO THE LOWEST LEVEL IN 19 YEARS INDICATING HOMEOWNERS CONTINUE TO BENEFIT FROM HISTORICALLY LOW INTEREST RATES UPJOHN NAMED JOHN ZABRISKIE AN EXECUTIVE VICE PRESIDENT AT MERCK CHAIRMAN AND CEO EFFECTIVE JAN 3 JAPANESE TRADE OFFICIALS PROPOSED A SET OF NUMERICAL BENCHMARKS TO HELP MEASURE THE OPENNESS OF THE NATION'S TELECOMMUNICATIONS MARKET THE PROPOSAL LED US NEGOTIATORS TO SAY THEY ARE MAKING HEADWAY IN TALKS AIMED AT CUTTING JAPAN'S HUGE TRADE SURPLUS EUROPE'S AIRBUS CONSORTIUM WON AN 801 MILLION ORDER FOR SIX LONGHAUL JETS FROM CATHAY PACIFIC AIRWAYS FORMERLY A LOYAL BOEING CUSTOMER EUROPEAN CAR SALES SLID 96 IN NOVEMBER A MORE MODERATE DROP THAN IN MONTHS PAST REFLECTING ROBUST GROWTH IN THE BRITISH CAR MARKET BUT THE EUROPEAN AUTO INDUSTRY STILL EXPECTS AROUND A 16 DROP FOR ALL OF 1993 LLOYD'S OF LONDON UNVEILED A 135 BILLION OFFER OF COMPENSATION FOR ITS WORSTHIT INVESTORS A PROPOSAL THAT IMMEDIATELY RAN INTO A HAIL OF CRITICISM STOCKS VOLUME 276531220 SHARES DOW JONES INDUSTRIALS 371888 UP 867 TRANSPORTATION 175870 UP 235 UTILITIES 22752 UP 171 BONDS LEHMAN BROTHERS TREASURY INDEX 559354 UP 671 COMMODITIES OIL 1470 A BARREL UP 13 CENTS DOW JONES FUTURES INDEX 13848 UP 136 SPOT INDEX 12437 UP 015 DOLLAR 10745 YEN OFF 045 17020 MARKS UP 00005 9312080018 931208 BUSINESS BRIEF GREAT AMERICAN COMMUNICATIONS JOINT REORGANIZATION PLAN CONFIRMED FOR PARENT UNITS GREAT AMERICAN COMMUNICATIONS CO PART OF FINANCIER CARL H LINDNER'S BUSINESS EMPIRE SAID THE US BANKRUPTCY COURT CONFIRMED A JOINT PREPACKAGED PLAN OF REORGANIZATION FOR GREAT AMERICAN AND TWO SUBSIDIARIES GACC HOLDING CO AND NEW GACC HOLDINGS INC THE PLAN WILL REDUCE DEBT AND PREFERREDSTOCK OBLIGATIONS TO 433 MILLION FROM 910 MILLION THE COMPANY SAID GREAT AMERICAN WHICH OWNS TELEVISION AND RADIO STATIONS NATIONWIDE HAS BEEN STAGGERING UNDER 625 MILLION OF DEBT INCURRED WHEN THE CINCINNATI COMPANY ACQUIRED TAFT BROADCASTING CO IN 1987 THE COMPANY SAID ITS ANNUAL FIXED CHARGES INTEREST AND PREFERREDSTOCK DIVIDENDS WILL BE REDUCED TO 41 MILLION FROM MORE THAN 94 MILLION GREAT AMERICAN IS 403OWNED BY AMERICAN FINANCIAL CORP THE LINDNER FAMILY'S CLOSELY HELD HOLDING COMPANY 9312080017 931208 UAL UNIONS APPEAR CLOSER TO BUYOUT PACT PRICE GAP WHICH HALTED EARLIER TALKS SEEMS TO BE GETTING NARROWER BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP AND ITS UNIONS WHICH ARE SEEKING TO ACQUIRE A MAJORITY STAKE IN THE COMPANY APPEAR TO BE NARROWING THE PRICE GAP THAT LED TO THE COLLAPSE OF THEIR FIRST ROUND OF BUYOUT NEGOTIATIONS THREE WEEKS AGO IN NEW YORK YESTERDAY THE TWO SIDES BEGAN DISCUSSING A NEW UAL PROPOSAL THAT THE UNIONS SCALE BACK THE STAKE THEY ARE SEEKING TO 501 FROM 60 ACCORDING TO SOME OF THOSE PRESENT THE PARENT OF UNITED AIRLINES ALSO SUGGESTED THAT THE UNIONS SWEETEN THE CASH DEBT AND PREFERRED STOCK PORTION OF THE PREVIOUS OFFER AND THE PARTIES DISCUSSED STRUCTURING THE TRANSACTION SO THAT THE UNION GROUP COULD RAISE ITS STAKE TO THE 60 IT INITIALLY SOUGHT PROVIDED THE COMPANY'S STOCK MEETS CERTAIN PERFORMANCE CRITERIA THE EXISTENCE OF THE NEW COMPANY PROPOSAL WAS REPORTED BY THE WASHINGTON POST IN MIDNOVEMBER UAL REJECTED AS INADEQUATE THE UNIONS' PROPOSAL TO ACQUIRE 60 OF THE COMPANY WHICH THE UNIONS VALUED AT 55 BILLION OR 16567 A SHARE ON A PERSHARE BASIS THE OFFER CONSISTED OF ABOUT 100 IN NEW COMMON STOCK THAT WOULD BE ISSUED AFTER THE COMPANY SET UP A LOWCOST CARRIER FOR SHORTHAUL ROUTES AND THE UNIONS AGREED TO BILLIONS OF DOLLARS IN CONCESSIONS THE ROUGHLY 66 A SHARE REMAINING WOULD HAVE BEEN MADE UP OF CASH DEBT AND PREFERRED STOCK UAL'S INVESTMENT ADVISER CS FIRST BOSTON INC VALUED THE WHOLE OFFER HOWEVER AT ONLY ABOUT 140 A SHARE AT THAT TIME UAL ADVISERS INDICATED THEY WANTED THE NONEQUITY PORTION OF THE TRANSACTION TO EXCEED 100 A SHARE BUT ACCORDING TO INDIVIDUALS CLOSE TO THE NEGOTIATIONS UAL IN RECENT DAYS HAS SUGGESTED IT MIGHT AGREE TO A DEAL IF THE NONEQUITY PORTION OF THE OFFER WAS APPROXIMATELY 95 A SHARE IT COULDN'T BE LEARNED WHAT THE TOTAL PERSHARE VALUE OF SUCH A TRANSACTION WOULD BE UNION NEGOTIATORS SAID YESTERDAY THEY WERE HEARTENED BY UAL'S LATEST SUGGESTIONS AND BELIEVED THAT THE PARTIES COULD HAMMER OUT AN AGREEMENT A PRESENTATION TO UNION NEGOTIATORS IN NEW YORK LAST WEEK BY STEPHEN M WOLF UAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WENT A LONG WAY IN CONVINCING LABOR OF HIS SINCERITY IN WORKING OUT THE DIFFERENCES A UNION OFFICIAL SAID ONE BIG STICKING POINT REMAINS HOWEVER UAL HASN'T YET FIGURED OUT HOW TO APPEASE THE MACHINISTS UNION MEMBERS WHO VOWED TO LEAVE THE NEGOTIATIONS IF THE COMPANY SOLD ITS FLIGHT KITCHENS AS PLANNED THE MACHINISTS UNION OPPOSED THE SALE OF THOSE CATERING OPERATIONS BECAUSE THEY EMPLOY ABOUT 5200 OF ITS MEMBERS UAL SAID IT IS BOUND BY A CONTRACT TO SELL THE KITCHENS AND UNABLE TO CANCEL IT THE MACHINISTS UNION HAS ARGUED THAT THE LOSS OF MORE THAN 5000 JOBS IN SUCH A SALE WOULD MAKE IT VERY DIFFICULT FOR ITS REMAINING MEMBERS TO SHOULDER THE LEVEL OF LABOR CONCESSIONS NEEDED TO COMPLETE THE UAL EQUITY PURCHASE THE NEGOTIATIONS IN NEW YORK YESTERDAY FOCUSED ON RESOLVING THE CONCERNS OF THE MACHINISTS ACCORDING TO PARTICIPANTS AND GETTING THEM TO STICK WITH THEIR PARTNERS UNITED'S PILOTS UNION TO COMPLETE THE MAJORITYSTAKE PURCHASE ONE OPTION UAL HAS UNDER CONSIDERATION ACCORDING TO INDIVIDUALS FAMILIAR WITH THE PLANS IS A REDUCTION IN THE AMOUNT OF CONCESSIONS THE MACHINISTS HAVE TO MAKE TO ACCOUNT FOR THE CONTRIBUTIONS THAT WOULD HAVE BEEN MADE BY THE KITCHEN WORKERS UNITED'S OTHER MAJOR UNION REPRESENTING FLIGHT ATTENDANTS DROPPED OUT OF THE TALKS IN THE SUMMER IN A DISPUTE WITH THE COMPANY OVER ITS OPENING A FOREIGN BASE FOR ATTENDANTS BUT THE FLIGHT ATTENDANTS HAVE RECENTLY INDICATED THAT THEY WANT TO REJOIN THE DISCUSSIONS THE UNIONS AND THE COMPANY HAVE BEEN NEGOTIATING IN EARNEST FOR THE PAST TWO MONTHS THOUGH THE TALKS BEGAN LATE IN THE SPRING UAL HAS SAID IT MUST LOWER ITS LABOR COSTS TO BECOME MORE COMPETITIVE WITH LOWFARE CARRIERS THAT SPECIALIZE IN SHORTERROUTE FLIGHTS THE UNION TRANSACTION WOULD GIVE UNITED BILLIONS OF DOLLARS OF LABOR CONCESSIONS SIGNIFICANTLY LOWERING ITS OPERATING COSTS BUT IF THAT FAILS UAL HAS SAID IT WOULD BE FORCED TO SHED FLIGHT AND MAINTENANCE OPERATIONS AND CONTRACT OUT THOUSANDS OF UNITED JOBS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY UAL FELL 875 CENTS TO 150 9312080015 931208 INTERNATIONAL CAR SALES FELL 96 IN EUROPE IN NOVEMBER BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BONN THANKS TO ROBUST GROWTH IN THE BRITISH CAR MARKET EUROPEAN CAR SALES SLID JUST 96 IN NOVEMBER A MORE MODERATE DROP THAN IN MONTHS PAST NEVERTHELESS THE EUROPEAN INDUSTRY STILL EXPECTS AROUND A 16 DROP FOR ALL OF 1993 AND BASICALLY STAGNANT MARKETS NEXT YEAR IN THE FIRST 11 MONTHS OF THE YEAR NEW CAR REGISTRATIONS IN 17 WESTERN EUROPEAN COUNTRIES FELL 143 TO 107 MILLION UNITS FROM 124 MILLION UNITS IN THE SAME PERIOD LAST YEAR ACCORDING TO PROVISIONAL FIGURES PROVIDED BY THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION AN INDUSTRY GROUP IN BRUSSELS IN NOVEMBER ALONE THE MARKET SLIPPED TO 869620 UNITS FROM 961830 UNITS ONCE AGAIN THE UNITED KINGDOM WAS THE CLEAR STANDOUT POSTING A 194 INCREASE IN NOVEMBER AND A 126 INCREASE IN THE YEAR TO DATE BECAUSE UK SALES ARE RECOVERING FROM AN EXTREMELY DEPRESSED LEVEL AFTER THREE YEARS OF DECLINE HOWEVER THE UK COULD EXPERIENCE SEVERAL YEARS OF 10PLUS GROWTH BEFORE IT RETURNS TO PEAK LEVELS SAYS BOB BARBER EUROPEAN AUTO ANALYST AT JAMES CAPEL IN LONDON FROM ITS PEAK IN 1989 THE UK MARKET FELL ABOUT 30 BEFORE BEGINNING TO PICK BACK UP THIS YEAR MR BARBER NOTES THERE WERE OTHER BRIGHT SPOTS TOO AMONG SMALLER MARKETS DENMARK SWEDEN AND NORWAY POSTED GAINS IN CAR SALES OF 273 13 AND 67 RESPECTIVELY AND OVERALL THE NUMBERS SHOWED SIGNS OF A MILD DECELERATION OF WHAT HAS BEEN THE SEVEREST EROSION IN THE EUROPEAN CAR MARKET SINCE WORLD WAR II NEW CAR REGISTRATIONS IN FRANCE FOR EXAMPLE FELL ONLY 116 IN NOVEMBER COMPARED WITH A 167 DROP IN THE YEAR TO DATE WHILE ITALY LOST ONLY 78 LAST MONTH COMPARED WITH A 211 DROP IN THE FIRST 11 MONTHS STILL INDUSTRY OBSERVERS CAUTIONED AGAINST OPTIMISM THAT THE MODERATION IN THE RATE OF DECLINE INDICATED A TURNAROUND ON THE HORIZON PARTICULARLY IN THE TWO LARGEST MARKETS IN EUROPE GERMANY AND ITALY INDUSTRY OBSERVERS EXPECT CONTINUED SLUGGISHNESS OFFSETTING GAINS MADE IN THE UK AND OTHER SMALLER MARKETS DECEMBER SALES ARE ALSO EXPECTED TO SHOW A SHARP EROSION LAST YEAR A NUMBER OF TAX AND OTHER INCENTIVES ENCOURAGED STRONG YEAREND BUYING THAT WON'T BE DUPLICATED THIS YEAR ANALYSTS SAY 9312080014 931208 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 DEAN WITTER DISCOVER & CO 400 MILLION OF FLOATINGRATE NOTES DUE DEC 15 1995 PRICED INITIALLY AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL FLOAT AND PAY MONTHLY AT 25 BASIS POINTS OVER ONEMONTH COMMERCIAL PAPER RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION OF FIVEYEAR CALLABLE DEBENTURES DUE DEC 10 1998 PRICED TO YIELD 5311 AND 800 MILLION OF 10YEAR NONCALLABLE DEBENTURES DUE DEC 10 2003 PRICED TO YIELD 5842 THE FIVEYEAR DEBENTURES WERE PRICED AT 99953125 WITH A 53 COUPON THE 10YEAR DEBENTURES WERE PRICED AT 996875 WITH A 58 COUPON THE FIVEYEAR DEBENTURES ARE CALLABLE ON OR AFTER DEC 10 1996 WITH THE FIRST INTEREST PAYMENT FOR BOTH ISSUES SCHEDULED FOR JUNE 10 1994 FLORIDA POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE DEC 1 2023 PRICED AS 7S AT 99375 TO YIELD 705 ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY JP MORGAN SECURITIES INC FLORIDA POWER IS A UNIT OF FLORIDA PROGRESS CORP NORTHERN STATES POWER CO 170 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS PRICED BY UNDERWRITERS LED BY KIDDER PEABODY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 100 MILLION OF FIRST MORTGAGE BONDS DUE DEC 1 2000 WAS PRICED AS 575S AT 99483 TO YIELD 5841 THE BONDS WERE PRICED AT A SPREAD OF 38 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 70 MILLION OF FIRST MORTGAGE BONDS DUE DEC 1 2005 WAS PRICED AS 6125S AT 99079 TO YIELD 6235 THE BONDS WERE PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P AMERICA ONLINE INC ONE MILLION COMMON SHARES PRICED AT 66 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CELLSTAR CORP INITIAL PUBLIC OFFERING OF 69 MILLION SHARES PRICED AT 1150 APIECE THROUGH LEAD UNDERWRITER LADENBURG THALMANN & CO ACCORDING TO THE COMPANY GATEWAY 2000 INC INITIAL PUBLIC OFFERING OF 109 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH GOLDMAN SACHS & CO AND PAINEWEBBER INC ACCORDING TO THE COMPANY GREENSTONE RESOURCES LTD 68 MILLION SPECIAL WARRANTS SOLD BY AN UNDERWRITING GROUP LED BY NESBITT THOMSON INC RAISING 154 MILLION CANADIAN DOLLARS US116 MILLION ACCORDING TO THE COMPANY EACH SPECIAL WARRANT IS CONVERTIBLE INTO ONE COMMON SHARE AS WELL AS HALF A SHAREPURCHASE WARRANT CONVERSION OF THE SPECIAL WARRANTS WILL RESULT IN A TOTAL OF 243 MILLION GREENSTONE SHARES AND 34 MILLION PURCHASE WARRANTS OUTSTANDING ADDITIONALLY IF ALL THE PURCHASE WARRANTS ARE EXERCISED THE COMPANY SAID IT WILL RAISE AN ADDITIONAL C91 MILLION INFINITY BROADCASTING CORP 56 MILLION CLASS A COMMON SHARES PRICED AT 30 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC STONECONSOLIDATED CORP INITIAL PUBLIC OFFERING OF 165000 UNITS AT C2800 US211792 APIECE THROUGH UNDERWRITERS INCLUDING SCOTIAMCLEOD INC BURNS FRY LTD AND SALOMON BROTHERS INC EACH UNIT INCLUDES 100 COMMON SHARES AT C14 US1059 A SHARE AND 14 CONVERTIBLE DEBENTURES AT C100 A DEBENTURE THE DEBENTURES WHICH MATURE DEC 31 2003 PAY INTEREST AT 8 A YEAR THE DEBENTURES ARE CONVERTIBLE BEGINNING JUNE 30 1994 INTO 6211 COMMON SHARES FOR EACH DEBENTURE REPRESENTING A CONVERSION PRICE OF C1610 A SHARE STONE CONSOLIDATED IS A UNIT OF STONE CONTAINER CORP ARIZONA TRANSPORTATION BOARD 1797 MILLION 1993 SERIES BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS FOR THE SUBORDINATED TRANSPORTATION EXCISETAX BONDS RANGE FROM 325 IN 1995 TO 485 IN 2005 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P DEKALB COUNTY GA 1266 MILLION SERIES 1993 WATER AND SEWER REVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 265 IN 1994 TO 542 IN 2023 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA NEW YORK CITY 6087 MILLION FISCAL 1994 SERIES E SERIES F AND SERIES G GENERALOBLIGATION BONDS PRICED BY A PRUDENTIAL SECURITIES INC GROUP THE 4587 MILLION SERIES E AND SERIES F BONDS ARE PRICED TO YIELD FROM 37 IN 1995 TO 595 IN 201114 YIELDS FOR THE 150 MILLION SERIES G REFUNDING BONDS RANGE FROM 37 IN 1995 TO 598 IN 201517 MOODY'S HAS RATED THE BONDS BAA1 S&P HAS ASSIGNED A SINGLEAMINUS RATING AND FITCH INVESTORS SERVICE INC HAS ASSIGNED A SINGLEAMINUS RATING NEW YORK STATE DORMITORY AUTHORITY 180 MILLION SERIES 1993C STATE UNIVERSITY EDUCATIONAL FACILITIES REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5539 YIELDS FOR REOFFERED BONDS RANGE FROM 35 IN 1995 TO 56 IN 2023 MOODY'S HAS RATED THE BONDS BAA1 AND S&P HAS ASSIGNED A TRIPLEBPLUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 510 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 19943 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS CELULOSE NIPOBRASILEIRA SA BRAZIL 175 MILLION OF 9375 EUROBONDS DUE DEC 21 2003 AT ISSUE AND REOFFER PRICE 9948 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 9457 A SPREAD OF 375 BASIS POINTS ABOVE COMPARABLE US TREASURY PUT OPTION EXERCISABLE ON FIFTH ANNIVERSARY AT 9689 TO YIELD 9 A MARGIN OF 390 BASIS POINTS OVER FIVEYEAR US TREASURY GUARANTOR COMPANHIA VALE DO RIO DOCE FEES ONE PAYABLE SEMIANNUALLY DRESDNER FINANCE BV GERMAN PARENT 475 MILLION MARKS OF 5375 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE JAN 12 1999 AT ISSUE PRICE 115 VIA DRESDNER BANK AG WARRANTS EXERCISEABLE TO PURCHASE ORDINARY SHARES OF DRESDNER BANK AG AT 440 MARKS A PREMIUM OF 158 OVER MONDAY'S CLOSING SHARE PRICE EXERCISABLE FROM JAN 26 1994 TO JAN 5 1999 WARRANT HOLDERS HAVE OPTION TO EXTEND WARRANTS ANNUALLY FROM ORIGINAL MATURITY DATE TO FINAL MATURITY DATE OF JANUARY 2001 PROVIDED SHARE PRICE FALLS BELOW EXERCISE PRICE GUARANTOR DRESDNER BANK AG FEES 225 LESS 0125 FOR LEAD MANAGER NEW BRUNSWICK CANADIAN PROVINCE 200 MILLION CANADIAN DOLLARS OF 775 EUROBONDS DUE JAN 13 2014 AT ISSUE PRICE 101175 VIA WOOD GUNDY INC REOFFERED AT 99125 TO YIELD 784 A SPREAD OF 100 BASIS POINTS ABOVE 75 CANADIAN GOVERNMENT NOTE OF 2003 FEES 25 SHOCHIKU CO JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 16 1997 WITH EQUITY PURCHASE WARRANTS CARRYING 0875 COUPON AT PAR VIA UNION BANK OF SWITZERLAND WARRANTS EXERCISABLE FROM JAN 10 1994 TO DEC 11 1997 TO PURCHASE COMPANY SHARES FINAL TERMS TO BE FIXED FRIDAY FEES 1625 TAISEI CORP JAPAN 10 BILLION YEN OF 305 EUROBONDS DUE MARCH 19 1998 AT ISSUE PRICE 1015 VIA NIKKO EUROPE PLC REOFFERED AT 100125 TO YIELD 302 FEES 1625 TAISEI CORP JAPAN 10 BILLION YEN OF 27 EUROBONDS DUE MARCH 19 1998 AT ISSUE PRICE 101475 VIA FUJI INTERNATIONAL FINANCE PLC REOFFERED AT 1002 TO YIELD 265 PUT OPTION EXERCISABLE MARCH 19 1997 AT PAR FEES 1725 TAISEI CORP JAPAN 30 BILLION YEN OF 38 EUROBONDS DUE MARCH 19 2001 AT ISSUE PRICE 101625 VIA YAMAICHI INTERNATIONAL EUROPE LTD REOFFERED AT 100075 TO YIELD 379 FEES 1875 TODA CORP JAPAN 10 BILLION YEN OF REVERSECOUPON EUROBONDS DUE MARCH 24 1998 AT ISSUE PRICE PAR VIA MITSUBISHI FINANCE INTERNATIONAL PLC REOFFERED AT 997 ANNUAL COUPON 3 TO MARCH 24 1997 THEREAFTER SEMIANNUAL COUPON AT 0125 POINT BELOW SIXMONTH YEN LONDON INTERBANK OFFERED RATE PUT OPTION EXERCISABLE MARCH 24 1997 AT PAR FEES 03 YODOGAWA STEEL WORKS LTD JAPAN 300 MILLION OF 175 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE DEC 23 1997 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC WARRANTS EXERCISABLE JAN 14 1994 TO DEC 10 1997 TO PURCHASE COMPANY SHARES AT TERMS TO BE FIXED MONDAY INDICATED PREMIUM 25 FEES 225 LESS 02 FOR LEAD MANAGER 9312080012 931208 MUNI RULES BOARD TO DELAY STARTUP OF CAMPAIGN CODES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID THAT ITS STRICT RULES COVERING CAMPAIGN CONTRIBUTIONS BY MUNICIPALBOND UNDERWRITERS WILL TAKE EFFECT AT LEAST TWO MONTHS LATER THAN PREVIOUSLY ANNOUNCED THE BOARD LAST MONTH PROPOSED THAT MUNICIPALBOND DEALERS WHO MAKE POLITICAL CONTRIBUTIONS SHOULD BE BARRED FOR TWO YEARS FROM DOING BUSINESS WITH THE CITIES AND STATES WHERE THE POLITICIANS SERVE THE RULE WAS TO COVER POLITICAL CONTRIBUTIONS BEGINNING JAN BUT THE BOARD SAID IT IS CONCERNED THAT THE JAN 1 EFFECTIVE DATE DOESN'T GIVE DEALERS TIME TO IMPLEMENT EFFECTIVE PROCEDURES FOR COMPLIANCE WITH THE RULE AS A RESULT THE EFFECTIVE DATE WILL BE DELAYED BY AT LEAST TWO MONTHS THE BOARD SAID THE BOARD MAY ALSO BEEF UP ITS PROPOSED RULE COVERING BOND FIRMS' DISCLOSURE OF CAMPAIGN CONTRIBUTIONS A STEP THAT WOULD ADDRESS CONCERNS VOICED BY SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT THE BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT WILL MEET MONDAY TO FINALIZE ITS PROPOSED RULE IT SAID IT WILL SEND ITS PROPOSAL TO THE SEC FOR CONSIDERATION NO LATER THAN MIDJANUARY MR LEVITT HAS WORKED CLOSELY WITH THE 17 BONDUNDERWRITING FIRMS THAT VOLUNTARILY AGREED THIS FALL TO STOP MAKING POLITICAL CONTRIBUTIONS HE IS TO MEET WITH LEADERS OF THE INITIATIVE IN NEW YORK TODAY TO REVIEW IMPLEMENTING DETAILS NEW PARTICIPANTS AND FURTHER STEPS COULD BE ANNOUNCED AFTER THAT MEETING PEOPLE FAMILIAR WITH THE MATTER SAID 23 COMPANIES ARE CONSIDERING JOINING THE BAN THEY INCLUDE EDWARD D JONES & CO CHICAGO CORP LEBENTHAL & CO LEGG MASON WOOD WALKER INC MILLER & SCHROEDER FINANCIAL INC DAIN BOSWORTH INC FIRST ALBANY CORP FIRST CHICAGO CAPITAL MARKETS INC TUCKER ANTHONY INC STONE & YOUNGBERG AND SHAWMUT BANK MEANWHILE THE NATIONAL LEAGUE OF CITIES IN A RESOLUTION ADOPTED AT ITS ANNUAL MEETING SAID IT OPPOSES ADOPTION OF THE BOARD'S PROPOSED RULE IN ITS CURRENT FORM AND ARGUED THAT ANY NEW FEDERAL RULES ON POLITICAL CAMPAIGN CONTRIBUTIONS SHOULD APPLY EQUALLY TO FEDERAL STATE AND LOCAL OFFICIALS THE NATION'S LARGEST MUNICIPAL LOBBYING ORGANIZATION THE LEAGUE SAID IT TAKES EXCEPTION TO THE PRESUMPTION THAT IF AN ELECTED OFFICIAL ACCEPTS A LEGITIMATE CAMPAIGN CONTRIBUTION FROM A MUNICIPAL SECURITIES PROFESSIONAL THEN THAT ELECTED OFFICIAL WILL BE UNABLE TO CARRY OUT HIS OR HER FIDUCIARY RESPONSIBILITY TO THE TAXPAYERS 9312080011 931208 LEISURE & ARTS ARCHITECTURE A MUSEUM KEEPS GROWING IN BROOKLYN BY EVE M KAHN BROOKLYN NY THE PAST STILL HOVERS OVER THE WEST WING OF THE BROOKLYN MUSEUM EVEN THOUGH THE GALLERIES THERE HAVE JUST BEEN RENOVATED TO STARK CONTEMPORARY WHITENESS TWO ARCHITECTS WHO BELIEVE IN HONORING BUT NOT QUOTING FROM ARCHITECTURAL HISTORY COLLABORATED ON THE PROJECT WHICH OPENED LAST WEEK JAMES STEWART POLSHEK IS A NEW YORKBASED MASTER OF RESPECT FOR CONTEXT WHO HAS REJUVENATED CARNEGIE HALL ARATA ISOZAKI IS A PUCKISH AND BOLD JAPANESE DESIGNER WHO ARRANGES FUNDAMENTAL FORMS LIKE PYRAMIDS TETRAHEDRA AND MARILYN MONROE'S CURVES INTO OPUSES LIKE LOS ANGELES' MUSEUM OF CONTEMPORARY ART THE ARCHITECTS' COLLABORATION WAS SMOOTH AND SYNERGISTIC I'M TOLD WITH EMPLOYEES AND PRINCIPALS SHUTTLING BETWEEN CONTINENTS WHILE MR POLSHEK'S OFFICE HANDLED THE BULK OF THE WORKLOAD VISITORS TO THE WING'S THREE STORIES OF GALLERIES WILL UNDOUBTEDLY BE OCCUPIED FOR YEARS TRYING TO GUESS WHICH ARCHITECT CHOSE WHICH MOTIF AND WHAT THESE COMPLICATED AND SELFCONFIDENT 31 MILLION SPACES SIGNIFY IN A MUSEUM THAT HAS ALWAYS BEEN SO AMBITIOUS AND SO THWARTED RIGHT NOW THE MUSEUM IS A SILLY 500FOOTLONG SLICE OF NEOCLASSICISM WITH A FROSTED LIMESTONE FRONT AND A PLAIN BRICK BACK THE GREAT NEOCLASSICAL FIRM OF MCKIM MEAD & WHITE DESIGNED IT IN 1893 AS ONE FACADE OF A SQUARE OF FOUR COURTYARDS THAT WOULD HOUSE AN INSTITUTE TEACHING EVERYTHING FROM MUSIC TO BOTANY BROOKLYN AT THE TIME WAS AN INDEPENDENT CITY THAT WOULD REQUIRE GRAND CENTRAL INSTITUTIONS BUT AFTER BROOKLYN BECAME A MERE BOROUGH IN 1898 THE INSTITUTE RAN OUT OF MONEY AND NARROWED ITS FOCUS TO ART SINCE THEN IT HAS FLOUNDERED ARCHITECTURALLY IN A FIT OF MINIMALISM JUST BEFORE AND AFTER WORLD WAR II MODERNISTS SWEPT AWAY THE FRONT STAIRS CARVED OUT A STREAMLINED FIRSTFLOOR LOBBY AND RAN A STREAMLINED STAIRCASE UP THE BACK WALL LIKE A ZIPPER LATER MODERNISTS STRIPPED MORE INTERIOR DETAIL AND FURTHER DEFILED THE BACK WALL WITH CONCRETE NOW HELP IS ON THE WAY MAYBE A MASTER PLAN FOR THE MUSEUM BY MR POLSHEK AND MR ISOZAKI CURRENTLY AWAITS FUNDING AND IS ONLY A LITTLE LESS GRANDIOSE THAN THE INSTITUTE'S THE ARCHITECTS WON A 1986 COMPETITION TO RESTORE THE EXISTING STRUCTURE AND EXTEND IT IN A JUMBLE NEARLY AS LARGE AS MCKIM'S HOPEDFOR SQUARE USING SOME STRAIGHTFACED CLASSICISM PAVILIONS COPIED FROM MCKIM'S AND SOME STRIPPEDDOWN FORMS SUCH AS A CENTRAL OBELISK OF SHEER LIMESTONE AND ATRIA WITH PLAIN TUBES FOR COLUMNS IF MONEY IS EVER RAISED FOR THIS ELEGANT BAGGY MONSTER THE WEST WING WILL PROVIDE A TRANSITION ZONE FROM RESTORED GALLERIES IN THE OLD BUILDING TO FUTURISTIC NEW CORRIDORS TWICE AS WIDE AS ANY THE MUSEUM HAS KNOWN EVEN THEN THE NEW WING SHOULD MORE THAN HOLD ITS OWN IT OPENS NOW WITH A WHOOSH ITS GLASS DOORS WITH STEELFRAMED RECTANGULAR PANES A POLSHEK SIGNATURE SEAL OFF THE WING FROM THE REST OF THE MUSEUM WHICH CURRENTLY ENJOYS NO SOPHISTICATED CLIMATE CONTROLS YOU'LL SEE DUSTY VENTS GAPING BETWEEN PAINTINGS IN OLDER GALLERIES AND ORDINARY AIR CONDITIONERS SUNK INTO WALLS A STACCATO SERIES OF ROOMS WITH MCKIMDESIGNED CEILING HEIGHTS OF UP TO 23 FEET RUNS IN A STRAIGHT LINE ON EACH WESTWING FLOOR A FOYER A 100FOOTLONG GALLERY A STAIR LANDING A 40FOOTSQUARE PAVILION AND A STUBBY NICHE THAT WILL BE PIERCED INTO A HALLWAY WHEN THE REST OF THE MASTER PLAN TAKES HOLD I FELT DISAPPOINTED AT FIRST BY THE GALLERIES' MATERIALS A NEUTRAL AND ARGUABLY STERILE BACKDROP OF PALE MAPLE FLOORS GRAY GRANITE BASEBOARDS FLOORTOCEILING LIMESTONE DOOR SURROUNDS AND ORIGINAL PURPLE TREADS ON THE STAIRCASE THAT'S ALWAYS THE CASE WITH MUSEUMS THE END RESULT IS DECEPTIVELY SIMPLE SAYS DAVID GAULD DIRECTOR OF MR ISOZAKI'S NEW YORK OFFICE ONLY AFTER MR GAULD'S GUIDED TOUR DID I APPRECIATE THE BRASS FLOOR OUTLETS CHOSEN TO BLEND WITH FLOORBOARDS DESPITE CONTRAST WITH STEEL DOORS OR THE LINEAR DIFFUSERS AIR SUPPLY SLOTS THAT SLINK AROUND MOST ROOMS A FEW FEET BELOW THE CEILINGS OR THE GRAY LACQUEREDWOOD RECTANGULAR COMPARTMENTS MORE POLSHEKISMS MOUNTED ON INNER WALLS OF THE DOORWAYS TO HIDE AND CONCENTRATE EACH GALLERY'S MECHANICAL CONTROLS IN ONE THRUMMING NODE THE SEXIEST PARTS OF THE ROOMS ARE AMAZINGLY ENOUGH THE FLOORBOARD PATTERNS CONCENTRIC SQUARES IN THE SQUARE PAVILIONS POLSHEK AGAIN AND THE FALSE CEILINGS HUNG FROM STEEL STUDS IN EVERY ROOM SOME OF THE CEILINGS ARE ARCHED SOME ARE FLAT AND SOME TAPERED UP TO SQUAREPANED SKYLIGHTS LIKE OTHERS IN THE REST OF THE MUSEUM IN OTHER WORDS THE WESTWING CEILINGS GAVE THE ARCHITECTS THEIR ONLY CHANCES TO LET LOOSE A BIT IN SPACES THAT HAD TO STAY PLAIN IN THE PRESENCE OF ART AND COULD NOT DISRUPT THE BUILDING'S LANDMARK SHELL THE CEILINGS ALSO EXPRESS MR ISOZAKI'S TASTE FOR DISARRAY THEY WERE THE ONLY PLACE YOU COULD HAVE SOME DIFFERENCE IN THE ROOMS HE SAYS HIS USUAL FLAMBOYANCE IS MORE OBVIOUSLY ON VIEW IN A SPECIAL EXHIBITION ON THE FOURTH FLOOR OF THE NEW WING UP UNTIL FEB 27 WHICH DISPLAYS 21 MODELS 162 SILKSCREENS AND DRAWINGS AND 500 PHOTOGRAPHS OF WHAT HE'S BEEN DOING FROM 1960 UNTIL NOW THE MODELS CARVED FROM MAGNOLIA ARE ENTHRALLING AND MAKE SOME BUILDINGS SEEM SUBLIME ESPECIALLY A CYLINDRICAL CONVENTION CENTER WITH A STAIR PEELING OFF ONE FACADE NOW BEING DESIGNED FOR NARA JAPAN THERE IS MUCH CLEVERNESS TOO FOR INSTANCE A 1990 DISNEY HEADQUARTERS IN FLORIDA WITH AN ENTRANCE SHAPED LIKE A SILHOUETTE OF MICKEY'S EARS THERE'S EVEN A HINT THAT MR ISOZAKI WILL BE ABLE TO TOLERATE THE SLOW PACE OF THE BROOKLYN MUSEUM'S PHASEBYPHASE CONSTRUCTION SCHEDULE CLUSTERS IN THE AIR IS AN IMAGINARY 1962 PLAN FOR MODULAR DWELLINGS SET HIGH ABOVE STREETS ON STALKS AND ABLE TO SPREAD LIKE TREETOPS OVER THE YEARS BY TAKING ON ADDITIONAL MODULES THE RIZZOLI MONOGRAPH THAT GOES WITH THE SHOW SPEAKS OF MR ISOZAKI'S SOLO ARCHITECTURE AS OUT OF PLACE AND EXTRAORDINARY IDEAL FOR THE URBAN MONUMENT IN THE POSTIDEAL SOCIETY BUT THE BEST DESCRIPTION OF MR ISOZAKI'S WORK AS TEMPERED BY MCKIM'S AND MR POLSHEK'S CAN BE FOUND IN A CAPTION FOR A CIRCA1744 BC QUARTZITE RELIEF PORTRAIT OF A PHARAOH IN THE THIRDFLOOR MARTHA A AND ROBERT S RUBIN GALLERIES THAT SHELTER A WELLEDITED SELECTION FROM THE MUSEUM'S RENOWNED EGYPTIAN COLLECTION IT TURNS OUT THAT THE EGYPTIANS DISLIKED MECHANICAL RIGIDITY AND AIMED FOR ART THAT WAS WELLBALANCED RATHER THAN TRULY SYMMETRICAL FOR ORDER OR EQUILIBRIUM WITH SOME FLEXIBILITY 9312080010 931208 POSTAL SERVICE POSTS LOSS OF 371 MILLION FOR 1993 WASHINGTON THE POSTAL SERVICE SAID IT HAD A 371 MILLION LOSS FOR FISCAL 1993 SIGNIFICANTLY SMALLER THAN THE 500 MILLION DEFICIT PROJECTED EARLIER BY POSTAL OFFICIALS THE AGENCY ALSO SAID IT HAS ELIMINATED APPROXIMATELY 25000 JOBS THAT DON'T INVOLVE THE PROCESSING AND DELIVERY OF MAIL THROUGH RESTRUCTURING LAST YEAR THE AGENCY REDUCED ITS WORK FORCE BY 47000 LARGELY THROUGH AN EARLYRETIREMENT PLAN POSTAL SERVICE OFFICIALS SAID THE NARROWER LOSS WOULDN'T AFFECT THE AGENCY'S PLAN TO INCREASE POSTAGE RATES IN 1995 9312080009 931208 LETTERS TO THE EDITOR GRIZZLY BEAR FACTS IT IS A MATTER OF UTMOST URGENCY TO GET STEVEN S MAY OF BELLEVUE WASH LETTERS NOV 17 MOVED TO THE SAFETY OF AN EASTERN STATE WHERE HE WILL NEVER ENCOUNTER A VICIOUS GRIZZLY BEAR WHILE IT IS TRUE THAT CLOSE ENCOUNTERS WITH GRIZZLY BEARS CAN HAVE SERIOUS EVEN TRAGIC CONSEQUENCES IT IS NOT BECAUSE THE BEAR IS VICIOUS AN UNFORTUNATE BIT OF ANTHROPOMORPHISM ON MR MAY'S PART THE GRIZZLY BEAR IS HUGE AND WILD AN OMNIVOROUS PREDATOR THAT WILL PROTECT ITS TERRITORY OR ITS YOUNG THE ONLY WAY IT KNOWS HOW IT WILL NOT SEEK YOU OUT A MOSQUITO WILL SEEK YOU OUT NOW THERE'S VICIOUSNESS IF YOU MUST CALL IT SUCH THE USE OF A TERM LIKE VICIOUS SUGGESTS A MINDSET THAT HOLDS ALL CREATURES ALL HABITATS EXPENDABLE IN THE WAKE OF HUMAN PROLIFERATION THAT IS WRONG 9312080008 931208 INTERNATIONAL BRAZIL UNVEILS PLAN TO FIGHT INFLATION WITH NEW CURRENCY SPENDING CUTS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO BRAZIL UNVEILED A NEW PLAN TO FIGHT ITS RUNAWAY INFLATION BUT STOCKMARKET REACTION ILLUSTRATED THE GENERAL SKEPTICISM THAT THE LATEST PROGRAM WILL BE ANY MORE SUCCESSFUL THAN PREVIOUS ATTEMPTS TO ARREST RISING PRICES AND A FALLING CURRENCY FINANCE MINISTER FERNANDO HENRIQUE CARDOSO YESTERDAY ANNOUNCED A PROPOSAL TO CUT SPENDING INCREASE TAXES AND GRADUALLY PHASE IN A NEW CURRENCY AS PART OF BRAZIL'S SIXTH MAJOR ATTEMPT IN SEVEN YEARS TO QUELL INFLATION CURRENTLY RUNNING AT 36 A MONTH INFLATION FOR 1993 IS EXPECTED TO REACH 2600 BRAZIL'S HIGHESTEVER RATE THE PLAN IS INNOVATIVE IN THE SENSE THAT IT SEEKS TO AVOID SHOCKTHERAPY THAT IS MEASURES SUCH AS WAGEANDPRICE FREEZES OR FINANCIAL CONFISCATIONS THAT HAVE BEEN TRIED UNSUCCESSFULLY IN THE PAST INSTEAD IT SEEKS TO BRING PUBLIC FINANCES UNDER CONTROL AS A FIRST STEP TOWARD INTRODUCING A STABLE CURRENCY WHY REPEAT ERRORS MR CARDOSO ASKED IN ANNOUNCING THE MEASURES WE CHOSE A MORE CREATIVE PATH AND ARE ASKING SOCIETY TO COLLABORATE THAT HOWEVER IS PART OF THE PROBLEM CRITICS SAY TAXPAYERS ARE LIKELY TO OBJECT TO HIGHER TAXES AT A TIME WHEN CONGRESS IS INVOLVED IN A MAJOR CORRUPTION SCANDAL AND OTHERS SAY THE PROCESS OF MOVING GRADUALLY FROM ONE CURRENCY TO ANOTHER IS FRAUGHT WITH RISK AND COMPLICATION THIS WILL GENERATE PROBLEMS IN CONGRESS AND RESISTANCE IN THE PRIVATE SECTOR PREDICTS ECONOMIST CELSO MARTONE WHO CALLS THE PLAN A BANDAID ROBERTO MACEDO ANOTHER ECONOMIST SAYS THE PLAN IS SERIOUS BUT HAS LIMITED OBJECTIVES AND FACES VERY BIG OBSTACLES THEIR DOUBTS WERE SHARED BY BRAZIL'S MARKETS YESTERDAY WITH BOTH THE SAO PAULO AND RIO STOCK EXCHANGES FALLING BY 1 THE CENTERPIECE OF THE PLAN IS A SCHEME TO ELIMINATE A PROJECTED BUDGET DEFICIT OF 22 BILLION NEXT YEAR THE GOVERNMENT HOPES TO ACHIEVE THIS BY RAISING ALL TAXES BY 5 AND BY TOUGH SPENDING CUTS INCLUDING THE POSSIBLE EXTINCTION OF SOME MINISTRIES AND THE REINING IN OF SALARIES AT STATE COMPANIES ECONOMISTS AND BUSINESSMEN HAIL THE GOVERNMENT'S DETERMINATION TO BALANCE THE BUDGET AND SAY IT'S THE FIRST TIME THE STATE SHOWS WILLINGNESS TO PAY PART OF THE PRICE OF STABILIZATION BUT MANY PEOPLE SAY THAT RATHER THAN RAISING TAXES WHICH COULD LEAD BUSINESSES TO MARK UP PRICES TO REFLECT HIGHER COSTS THE GOVERNMENT COULD RAISE FUNDS BY ACCELERATING ITS PLODDING PRIVATIZATION PROGRAM YESTERDAY THAT PROGRAM SUFFERED ANOTHER SETBACK WHEN THE PLANNED SALE OF PETROCHEMICAL COMPANY PETROQUIMICA UNIAO WAS CANCELED IF THE GOVERNMENT GETS CONGRESSIONAL APPROVAL FOR THE DEFICIT PROPOSAL IT INTENDS TO MOVE ON TO THE SECOND PART OF THE PLAN GRADUALLY PHASING IN A NEW CURRENCY AS A FIRST STEP THE GOVERNMENT WOULD INTRODUCE A NEW UNIT OF ACCOUNT WHOSE VALUE WILL FLUCTUATE DAILY ACCORDING TO INFLATION JUST AS A CURRENCY DOES TAXES WOULD BE CALCULATED IN THIS UNIT OF ACCOUNT AND THE GOVERNMENT COULD ALSO ISSUE BONDS DENOMINATED IN IT IF THIS UNIT OF ACCOUNT MEETS WITH BROAD ACCEPTANCE IT COULD THEN BECOME THE COUNTRY'S CURRENCYMARKING THE FIFTH TIME BRAZIL HAS ADOPTED A NEW CURRENCY SINCE 1986 ECONOMISTS SAY THE EFFORT TO CREATE A STABLE CURRENCY IS A VARIATION OF ARGENTINA'S DECISION TO PEG ITS CURRENCY TO THE DOLLAR FORMER PLANNING MINISTER ANTONIO DELFIM NETTO DESCRIBES IT AS A BASTARDIZED DOLLARIZATION OF BRAZIL'S CURRENCY THE CRUZEIRO REAL BUT THEN ASKS BANKER IGOR CORNELSEN WHY NOT MAKE THE DOLLAR A CURRENCY IN THIS COUNTRY TOO EVERYBODY ALREADY REFERS TO THE DOLLAR WHEN BUYING A HOUSE OR A CAR 9312080007 931208 BUSINESS BRIEF REYNOLDS METALS WEIGHS RESTRUCTURING TO PARE DOWN FABRICATING OPERATIONS RICHMOND VA REYNOLDS METALS CO IN YET ANOTHER SIGN OF THE STING OF SLUMPING ALUMINUM PRICES SAID IT IS CONSIDERING RESTRUCTURING ITS FABRICATING OPERATIONS WHICH COULD FORCE A 150 MILLION TO 225 MILLION AFTERTAX CHARGE THE RESTRUCTURING WHICH ON A PERSHARE BASIS COULD RESULT IN A 250 TO 375 CHARGE IN A YETUNDETERMINED QUARTER MAY INCLUDE LAYOFFS AND CLOSINGS THE COMPANY SAID IT HASN'T DECIDED WHEN THE RESTRUCTURING WOULD TAKE PLACE OR WHAT COMBINATION OF LAYOFFS AND CLOSINGS WOULD BE INVOLVED REYNOLDS POSTED A LOSS OF 7488 MILLION OR 1256 A SHARE INCLUDING A 6396 MILLION ACCOUNTING CHARGE IN 1992 ANALYSTS SAID LOW ALUMINUM PRICESCAUSED BY A WORLDWIDE GLUTARE PUSHING PRODUCERS TO DUMP INEFFICIENT OPERATIONS AND FOCUS ON FEWER PRODUCT LINES EACH COMPANY IS SYSTEMATICALLY PRUNING SELECTED PORTIONS OF ITS ASSET BASE ESPECIALLY FABRICATEDPRODUCT OPERATIONS THAT DON'T MEET SATISFACTORY RETURNS SAID JOHN C TUMAZOS AN ANALYST WITH DONALDSON LUFKIN & JENRETTE THE WORLD'S THIRDBIGGEST ALUMINUM PRODUCER SAID ITS LARGEST OPERATION UNDER SCRUTINY INVOLVES ITS SHEETANDPLATE PLANT IN MCCOOK ILL WHICH EMPLOYS 1200 WORKERS THE PLANT SERVES THE AEROSPACE AUTOMOTIVE BEVERAGECONTAINER AND CONSTRUCTION INDUSTRIES REYNOLDS EXPECTS TO MAKE A DECISION CONCERNING THE MCCOOK PLANT WITHIN 60 DAYS REYNOLDS ALREADY HAS DISCLOSED SOME ELEMENTS OF THE RESTRUCTURING WITHIN THE PAST FEW WEEKS IT TOLD EMPLOYEES AT ITS LOUISVILLE KY PLANT THAT IT'S SHUTTING ITS OPERATION THERE THAT MAKES EXTRUDED SHAPES SUCH AS WINDOW FRAMES AND DOOR COMPONENTS ELIMINATING 80 OF THE PLANT'S 200 JOBS REYNOLDS WILL CONTINUE MAKING EXTRUDED SHAPES AT OTHER FACILITIES AND REYNOLDS SAID IT IS DUMPING ITS IRRIGATIONTUBING MANUFACTURING OPERATION IN TORRANCE CALIF SLASHING 45 JOBS THE FACILITY WILL CONTINUE AS A DISTRIBUTION CENTER WITH SIX WORKERS REYNOLDS EMPLOYS 30000 WORKERS A SPOKESWOMAN DECLINED TO IDENTIFY OTHER FACILITIES UNDER STUDY 9312080006 931208 ASPIN PLANS INITIATIVE TO DETER USE OF ARMS OF MASS DESTRUCTION WASHINGTON DEFENSE SECRETARY LES ASPIN SAID HE IS LAUNCHING A US INITIATIVE TO DETER THE USE OF NUCLEAR CHEMICAL AND BIOLOGICAL WEAPONS OF MASS DESTRUCTION NOTING THAT MORE THAN 20 COUNTRIES NOW POSSESS OR ARE DEVELOPING SUCH WEAPONS AND THAT 12 COUNTRIES HAVE OPERATIONAL BALLISTIC MISSILES HE SAID IT'S NO LONGER SUFFICIENT TO SIMPLY TRY TO REDUCE THE SPREAD OF THE WEAPONS THE THREAT IS REAL AND THE THREAT IS UPON US TODAY NOT IN THE FUTURE HE SAID IN A SPEECH HERE THE HEART OF THE NEW DEFENSE COUNTERPROLIFERATION INITIATIVE MR ASPIN SAID IS TO DEVELOP NEW MILITARY CAPABILITIES TO COUNTER THE THREAT AS EXAMPLES HE LISTED MAKING BOMBS THAT CAN REACH UNDERGROUND FACILITIES AND IMPROVING THE US MILITARY'S ABILITY TO HUNT MOBILE MISSILES A WEAKNESS THAT BECAME EVIDENT DURING THE GULF WAR ANOTHER PENTAGON OFFICIAL SAID THE MILITARY WILL PURSUE RESEARCH IN VACCINE PRODUCTION TO COUNTER BIOLOGICAL WEAPONS WIDEAREA CHEMICAL DETECTION AND SURVEILLIANCE AND DETECTION OF NUCLEAR MATERIALS MR ASPIN MENTIONED THE CURRENT CONFRONTATION WITH NORTH KOREA ONLY IN PASSING SAYING THAT IN THAT COUNTRY OUR GOAL IS STILL PREVENTION WE'RE STILL LOOKING FOR A NONNUCLEAR PENINSULA AND A STRONG NONPROLIFERATION REGIME BOB GASKIN A MILITARY STRATEGIST AT BUSINESS EXECUTIVES FOR NATIONAL SECURITY A WASHINGTON RESEARCH GROUP SAID IT APPEARED TO HIM THAT THE NEW INITIATIVE WAS DRIVEN BY CONCERN ABOUT NORTH KOREAN WEAPONRY WHEN YOU LOOK AT THE LIST OF THE THINGS THEY WANT TO DO AND COMPARE IT WITH WHAT THEY CAN'T DO WITH NORTH KOREA THEY'RE IDENTICAL SAID MR GASKIN WHO STUDIED KOREAN MILITARY QUESTIONS BEFORE RETIRING FROM THE AIR FORCE 9312080005 931208 ECONOMY OCTOBER CREDIT USE GREW AT RATE OF 127 WASHINGTON AMERICANS' USE OF CREDIT JUMPED AT A 127 ANNUAL RATE IN OCTOBER THE FEDERAL RESERVE SAID LARGELY ON THE STRENGTH OF AUTO LOANS THE INCREASE SUGGESTS ROBUST FOURTHQUARTER GROWTH IN CONSUMER SPENDING THE BIG RISE COMES ON TOP OF SEPTEMBER'S REVISED 96 RATE AND CONTINUES A STEADY RISE IN CONSUMER CREDIT SINCE JANUARY HESITANCY TO USE CREDIT HAS DISAPPEARED SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST IN CHICAGO LOANS FOR AUTOMOBILES EXPANDED THE MOST DURING OCTOBER LEAPING AT A 175 ANNUAL RATE AFTER AN 84 RATE IN SEPTEMBER REVOLVING CREDIT WHICH INCLUDES LOANS FOR BANK AND DEPARTMENTSTORE CARDS GREW AT A 138 ANNUAL RATE AFTER A 131 RATE THE MONTH BEFORE OTHER TYPES OF LOANS INCLUDING SCHOOL TAX AND MOBILEHOME CREDIT GREW AT A 54 ANNUAL RATE FOLLOWING A 67 RATE IN SEPTEMBER HOMEEQUITY LINES OF CREDIT WEREN'T INCLUDED IN THE FED'S FIGURES FOR THE LAST TWO YEARS PEOPLE HAVE BEEN REPAIRING THEIR BALANCE SHEETS IF WE NEEDED A BELL TO TELL US WHEN THIS WAS DONE THIS IS IT SAID GARY CIMINERO CHIEF ECONOMIST FOR FLEET FINANCIAL GROUP IN PROVIDENCE RI WHILE MANY ECONOMISTS EXPECT CONSUMER SPENDING TO CONTINUE TO GROW THEY DOUBT THAT THE EXPANSION IN CONSUMER CREDIT WILL CONTINUE AT OCTOBER'S STRONG RATE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR OCTOBER IN BILLIONS AND PERCENTAGE CHANGES FROM SEPTEMBER AT AN ANNUAL RATE 9312080004 931208 MARKETING & MEDIA PURCHASES OF SHARES SPARK QUESTIONS ON VALUE OF VIACOM BID FOR PARAMOUNT BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL VIACOM INC FACED NEW QUESTIONS ABOUT THE VALUE OF ITS 94 BILLION CASHANDSTOCK BID FOR PARAMOUNT COMMUNICATIONS INC WITH THE DISCLOSURE THAT WMS INDUSTRIES INC A COMPANY 249 OWNED BY VIACOM'S CHAIRMAN BOUGHT VIACOM STOCK AGGRESSIVELY JUST AFTER A RIVAL BID FOR PARAMOUNT EMERGED THE PURCHASES BY WMS REPORTED YESTERDAY IN THE NEW YORK TIMES APPEAR TO HAVE HELPED PROP UP THE PRICE OF VIACOM CLASS B SHARES AT A TIME WHEN THE BIGGEST COMPONENT OF VIACOM'S OFFER THEN VALUED AT ABOUT 75 BILLION WAS VIACOM B STOCK EXECUTIVES OF BOTH COMPANIES DENIED THAT WMS'S PURCHASE OF 500000 VIACOM CLASS B SHARES WAS PART OF A PLAN BY VIACOM OR ITS CHAIRMAN SUMNER REDSTONE TO SUPPORT VIACOM'S STOCK PRICE IN THE FACE OF A COMPETING BID BY QVC NETWORK INC INDEED A SPOKESMAN FOR VIACOM SAID THAT VIACOM EXECUTIVES ONLY LEARNED OF THE WMS STOCK PURCHASES MONDAY NIGHT HOWEVER THE WMS PURCHASES ACCOUNTED FOR ABOUT 20 OF THE TRADING VOLUME OF VIACOM B SHARES BETWEEN THE LAST WEEK OF SEPTEMBER AND MIDOCTOBER A PERIOD WHEN MR REDSTONE HAD SUSPENDED HIS OWN PROGRAM OF BUYING VIACOM STOCK BECAUSE OF HIS PENDING TAKEOVER BID MR REDSTONE'S OWN EARLIER PURCHASES OF VIACOM STOCK IN JULY AND AUGUST HAD ALREADY DRAWN CRITICISM FROM QVC BECAUSE THEY BOLSTERED VIACOM'S STOCK PRICE JUST BEFORE VIACOM RESUMED MERGER TALKS WITH PARAMOUNT THAT CULMINATED IN A FRIENDLY MERGER AGREEMENT SEPT 12 QVC MADE A COMPETING 96 BILLION BID ON SEPT 20 AND HAS SINCE RAISED THE BID TO 102 BILLION IT SHARPENS THE QUESTIONS' LISBETH BARRON A MEDIA ANALYST AT SG WARBURG & CO SAID THE WMS PURCHASES RAISE QUESTIONS ABOUT THE LONGTERM VALUE OF THE STOCK PORTION OF VIACOM'S 95 BILLION CASHANDSTOCK OFFER REGARDLESS OF WHETHER YOU ACCEPT THAT REDSTONE DIDN'T KNOW ABOUT THE WMS PURCHASES WHEN YOU PUT THEM TOGETHER WITH HIS EARLIER BUYING OF VIACOM STOCK IT SHARPENS THE QUESTIONS ABOUT THE LONGTERM VALUE OF VIACOM'S STOCK WITHOUT THE IMPACT OF EXTERNAL INFLUENCES ON ITS TRADING SHE SAID THE CONTROVERSY OVER THE STOCK PURCHASES EMERGED ON THE EVE OF A DELAWARE SUPREME COURT HEARING SCHEDULED FOR TOMORROW THE HEARING COMES ON VIACOM'S AND PARAMOUNT'S APPEAL OF A DELAWARE CHANCERYCOURT ORDER TEMPORARILY BLOCKING THEIR MERGER THE CHANCERY COURT RULED NOV 24 THAT DIRECTORS OF NEW YORKBASED PARAMOUNT SHOULD HAVE SOUGHT MORE INFORMATION ABOUT QVC'S BID AND THE COURT INVALIDATED A STOCKOPTION AGREEMENT THAT WOULD HAVE MADE ANY RIVAL BIDS MORE EXPENSIVE WMS IS A CHICAGOBASED MAKER OF PINBALL MACHINES VIDEOARCADE GAMES AND CASINOGAMBLING EQUIPMENT AND OWNS STAKES IN THREE HOTELCASINOS IN PUERTO RICO MR REDSTONE OWNS 249 OF WMS'S STOCK AS WELL AS ABOUT 75 OF NEW YORKBASED VIACOM LOUIS NICASTRO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WMS SAID WMS BOUGHT THE VIACOM SHARES AT A TOTAL COST OF ABOUT 27 MILLION BECAUSE HE BELIEVED THAT IF VIACOM PREVAILED IN ACQUIRING PARAMOUNT THAT IT WOULD BE A GOOD INVESTMENT WE THOUGHT THIS WAS A TWOPLUSTWOMAKEFIVE THING MR NICASTRO SAID THAT WHILE HE SPEAKS WITH MR REDSTONE AND VIACOM GENERAL COUNSEL PHILIPPE DAUMAN FROM TIME TIME HE DIDN'T INFORM THEM OF THE STOCK PURCHASES AND DIDN'T MAKE THE PURCHASE AT THE SUGGESTION OF THEM OR ANY INTERMEDIARY NOBODY TOUTED IT TO ME I MADE THE CALL HE ADDED A SPOKESMAN FOR MR REDSTONE DENIED THAT THE VIACOM CHAIRMAN CONTROLS WMS DESPITE HIS BIG STOCK POSITION BECAUSE HE DOESN'T HAVE THE RIGHT TO NAME ANY DIRECTORS THE SPOKESMAN CALLED IT A PURELY PASSIVE INVESTMENT SINCE THE WMS PURCHASES WHICH WERE MADE AT AN AVERAGE PRICE OF 54 A SHARE THE PRICE OF VIACOM B SHARES HAS TUMBLED CHIEFLY BECAUSE THE CABLETV CONCERN HAS RAISED ITS BID TWICE VIACOM B SHARES CLOSED AT 4375 UP 1 OR 23 IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE 9312080003 931208 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9312080002 931208 WORKPLACE TEXAS COUNTY REVERSES COURSE ON APPLE PLANT BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL IT LOOKS AS THOUGH APPLE COMPUTER INC WILL BE GOING TO WILLIAMSON COUNTY AFTER ALL COMMISSIONERS IN THE CENTRAL TEXAS COUNTY WHO LAST WEEK EFFECTIVELY KILLED APPLE'S PLAN TO BUILD A BIG SERVICE FACILITY LARGELY BECAUSE OF THEIR CONCERN ABOUT A COMPANY BENEFITS POLICY REGARDING HOMOSEXUALS YESTERDAY REVERSED COURSE BY A 32 VOTE THEY APPROVED A PACKAGE OF SOME 750000 OF FINANCIAL INCENTIVES FOR THE COMPANY APPLE SAID IT NOW PLANS TO PROCEED WITH CONSTRUCTION OF THE 80 MILLION SERVICE CENTER WHICH IS EXPECTED TO PROVIDE 1700 JOBS THE COMMISSIONERS' REVERSAL CAPPED A STRANGE CHAIN OF EVENTS THAT THRUST LITTLE GEORGETOWN TEXAS 40 MILES NORTH OF AUSTIN INTO THE NATIONAL LIMELIGHT THE EPISODE UNDERSCORES THE FACT THAT ALTHOUGH GAY MEN AND LESBIANS HAVE MADE GAINS IN GETTING MORE RECOGNITION AND BENEFITS AT SOME BIG CORPORATIONS THEY STILL HAVE A LONG WAY TO GO UNTIL LAST WEEK WILLIAMSON COUNTY WAS BEST KNOWN AMONG TEXANS AS A PLACE IN TRANSITION FROM THE CATTLE FARMS AND SMALL FARMS OF RURAL TEXAS TO THE BEDROOM COMMUNITIES AND SUBURBS OF AUSTIN KNOWN FOR ITS LIBERAL WAYS THE APPLE FLAP REFLECTED THE COLLISION OF THOSE CONFLICTING VALUES APPLE HAD ASKED THE COUNTY FOR TAX ABATEMENTS SO IT COULD BUILD A SERVICE CENTER IN THE SOUTHERN REACHES OF THE COUNTY ALTHOUGH THE FACILITY WOULD BRING MANY JOBS IN THE MINDS OF SOME OF THE COMMISSIONERS AND AT LEAST SOME OF THEIR CONSTITUENTS IT MEANT SOMETHING ELSE HOMOSEXUALS IN THEIR TOWN TWO COMMISSIONERS JERRY MEHEVEC AND GREG BOATWRIGHT EXPRESSLY SAID THEY VOTED AGAINST THE TAXINCENTIVE PACKAGE BECAUSE OF CONCERN OVER APPLE'S POLICY OF EXTENDING BENEFITS TO THE DOMESTIC PARTNERS OF GAY AND LESBIAN EMPLOYEES THE PACKAGE WAS DEFEATED 32 THAT VOTE DISMAYED TEXAS GOV ANN RICHARDS WHO HAD AVIDLY COURTED APPLE BEHIND THE SCENES SHE BEGAN PRESSURING COUNTY OFFICIALS TO RECONSIDER WHILE CONTINUING TO WOO APPLE THE VOTE ALSO TRIGGERED AN OUTPOURING OF EDITORIAL SCORN MOST OF TEXAS'S BIG NEWSPAPERS DECRIED THE COMMISSIONERS' VOTE AS A BOW TO PREJUDICE MORE IMPORTANT SAY COMMISSION OFFICIALS WAS THE OUTSPOKEN CRITICISM BY THE COUNTY'S BUSINESS COMMUNITY OVER THE WEEKEND THE CHAMBER OF COMMERCE IN ROUND ROCK THE TOWN CLOSEST TO THE SITE OF THE PROPOSED FACILITY PRIVATELY CONTACTED COMMISSIONERS AND ASSAILED THEM OVER THE DECISION THEY SAID IT WOULD BE A BLOW TO BUSINESS IN THIS AREA FOREVER SAID MIKE HEILIGENSTEIN A COMMISSIONER WHO STRONGLY SUPPORTED THE APPLE PLANT MEANWHILE CITIES ACROSS THE STATE AND IN SEVERAL OTHER STATES LINED UP TO TRY TO GET THE APPLE PLANT DALLAS MAYOR STEVE BARTLETT MADE A SALES PITCH TO APPLE AS DID OFFICIALS FROM TARRANT COUNTY WHERE FORT WORTH IS LOCATED EVEN THE DALLASBASED BAPTIST FOUNDATION OF TEXAS A RELIGIOUS ORGANIZATION OFFERED TO SELL APPLE LAND FOR THE NEW COMPLEX THE HEAT ON COMMISSIONERS ESCALATED OVER THE WEEKEND WHEN THE AUSTIN AMERICANSTATESMAN NEWSPAPER PUBLISHED A POLL INDICATING THAT 50 OF WILLIAMSON COUNTY'S RESIDENTS OPPOSED THE COMMISSION'S REJECTION OF APPLE 37 APPROVED BUT MR HAYS ALSO REMARKED LAST WEEK THAT HE DIDN'T BELIEVE GOVERNMENT SHOULD MEDDLE IN A COMPANY'S INTERNAL AFFAIRS MR HEILIGENSTEIN LOCAL BUSINESS LEADERS AND OTHER APPLE SUPPORTERS SAW THAT AS AN OPENING OVER THE WEEKEND THEY TRIED TO WORK OUT A FORMULA THAT WOULD ENABLE HIM TO SWITCH HIS VOTE CATHY BONNER HEAD OF TEXAS'S DEPARTMENT OF COMMERCE SAID GOV RICHARDS AND OTHER STATE OFFICIALS ALSO GOT INVOLVED AFTER BEING CONTACTED BY MR HAYS HIMSELF AT ONE POINT THE COMMISSIONERS OFFERED TO BUILD A ROAD INTO THE APPLE SITE APPLE REJECTED THAT OFFER AS INADEQUATE THE DEAL EVENTUALLY HAMMERED OUT BY THE VARIOUS NEGOTIATORS ISN'T MUCH DIFFERENT FROM THE ORIGINAL BUT IT WAS DIFFERENT ENOUGH TO ENABLE MR HAYS TO CHANGE HIS VOTE UNDER THE NEW INCENTIVE PACKAGE APPLE WILL GET SOME 750000 OF TAX REIMBURSEMENTS AS OPPOSED TO THE STRAIGHT TAX FORGIVENESS IT WOULD HAVE RECEIVED UNDER THE ORIGINAL PLAN MOREOVER APPLE HAS AGREED TO GRANT THE COUNTY FREE RIGHTS OF WAY FOR CERTAIN FUTURE COUNTY IMPROVEMENTS SUCH AS ROADS LAST WEEK I WAS ASKED TO VOTE TO USE TAXPAYER DOLLARS TO SUBSIDIZE AND THEREFORE TACITLY ENDORSE A BENEFITS POLICY WITH WHICH I DISAGREE MR HAYS SAID YESTERDAY IN A WRITTEN STATEMENT TODAY'S VOTE DOES NOTHING OF THE KIND HE COULDN'T BE REACHED TO ELABORATE APPLE SAID IT EXPECTS THE FACILITY TO OPEN IN 1995 BUT THE CONFLICT IN GEORGETOWN IS ALMOST CERTAIN TO FLARE AGAIN ELSEWHERE IN THE FUTURE FOR ONE THING HIGHTECH COMPANIES WHICH MANY ECONOMISTS BELIEVE WILL CONTRIBUTE MUCH OF THE NATION'S JOB GROWTH IN THE FUTURE TEND TO HAVE MORE LIBERAL EMPLOYMENT POLICIES AS THEY EXPAND THEIR GEOGRAPHIC REACH THEY'RE LIKELY TO ENCOUNTER SIMILAR RESISTANCE THE LESSON OF THE WILLIAMSON COUNTY AFFAIR SAID MS BONNER OF THE STATE COMMERCE DEPARTMENT IS THAT ANY COMMUNITY SHOULD THINK TWICE BEFORE LETTING A SMALL GROUP OF PEOPLE TURN AWAY GOOD JOBS MICHAEL TOTTY CONTRIBUTED TO THIS ARTICLE 9312080001 931208 WHO'S NEWS GENETIC THERAPY INC GENETIC THERAPY INC GAITHERSBURG MD STEPHEN G MARCUS 40 YEARS OLD WAS NAMED VICE PRESIDENT OF CLINICAL AND REGULATORY AFFAIRS A NEW POSITION AT THIS COMPANY WHICH DEVELOPS HUMAN GENE THERAPY PRODUCTS MR MARCUS WAS MOST RECENTLY VICE PRESIDENT MEDICAL AND REGULATORY AFFAIRS AT SYSTEMIX INC A MEDICAL TESTING AND RESEARCH COMPANY 9312080131 931117 LETTERS TO THE EDITOR GRIZZLY HYSTERIA YOUR ENVIRONMENTAL REPORT OCT 1 REGARDING GRIZZLY BEARS IS TYPICAL OF THE ENVIRONMENTAL MOVEMENT HYSTERIA AND HALFTRUTHS YOU MAINTAIN THAT GRIZZLIES ARE ONLY FOUND IN ALASKA MONTANA AND WYOMING NOT TRUE THEY ARE ALSO FOUND IN IDAHO AND WASHINGTON EVEN AMONG THE ENVIRONMENTAL GROUPS THERE IS DISAGREEMENT ABOUT INCREASING THE AREAS OF GRIZZLY HABITAT BECAUSE TO DO SO WILL SURELY INCREASE THE NUMBER OF HUMAN DEATHS FROM THESE VICIOUS ANIMALS SEE RELATED LETTER LETTERS TO THE EDITOR GRIZZLY BEAR FACTS WSJ DEC 8 1993 9311170023 YY93 MM12 9312080111 931126 ABORTION AND THE HEALTH PLAN FATAL COERCION BY GREG ERLANDSON THE FEDERAL GOVERNMENT MAY SOON TRY TO FORCE CARDINAL JOHN O'CONNOR OF NEW YORK AND HIS FELLOW BISHOPS TO PAY FOR THE ABORTIONS OF THEIR DIOCESAN EMPLOYEES AND THEIR FAMILIES IN FACT HEALTH CARE REFORM AS PROPOSED BY THE CLINTON ADMINISTRATION WILL REQUIRE THE CHURCH OF JESUS CHRIST OF LATTERDAY SAINTS THE SOUTHERN BAPTIST CONVENTION THE NATIONAL RIGHT TO LIFE COMMITTEE AND EVEN THE CATHOLIC PUBLISHING COMPANY I WORK FOR TO DO THE SAME FOR ALL THEIR EMPLOYEES AND FAMILIES THIS RADICAL COMPONENT OF THE CLINTON HEALTH CARE PACKAGE HAS BEEN LITTLE NOTED UP TO NOW MOST OF THE MORAL DEBATE HAS FOCUSED ON THE FACT THAT SOME ABORTIONS WILL BE PAID FOR WITH TAX DOLLARS AND THAT EVERY WORKING PERSON IN THE COUNTRY COULD BE FORCED TO PAY PREMIUMS FOR A CORE MEDICALBENEFITS PACKAGE THAT WILL INCLUDE ABORTION AS ONE OF ITS SERVICES BOTH OF THESE ISSUES ARE OF SERIOUS SOCIAL AND MORAL CONCERN BUT THE EVIL GENIUS OF THE CLINTON PROPOSAL IS THAT IT WILL COOPT EVERYONE INCLUDING THOSE LEADERS AND INSTITUTIONS THAT HAVE BEEN MOST OUTSPOKENLY CRITICAL OF ABORTION BY MAKING ABORTION A REQUIREMENT OF THE BASIC HEALTHBENEFITS PACKAGE THE CLINTONS WOULD USE THE MIGHT OF FEDERAL LAW TO FORCE A HOST OF COMPANIES FOUNDATIONS AND ORGANIZATIONS TO CHOOSE BETWEEN CLOSING THEIR DOORS FOR GOOD AND SUBSIDIZING WHAT THEY UNDERSTAND TO BE THE DESTRUCTION OF HUMAN LIFE THE IMPLICATIONS OF THE CLINTON PROPOSAL ARE AS FARREACHING AS THE SUPREME COURT'S ROE V WADE DECISION 20 YEARS AGO AND POTENTIALLY AS DISRUPTIVE HOWEVER DIVIDED THE COUNTRY MAY BE ABOUT WHETHER ABORTION IS AN ETHICAL PUBLIC POLICY A CONSENSUS HAS EMERGED ON THE MATTER OF PUBLIC PAYMENT FOR ABORTION IF ABORTION IS A CHOICE IT IS A PRIVATE CHOICE AND PAYMENT FOR IT SHOULD BE LEFT TO THE INDIVIDUAL THAT IS THE MESSAGE OF THE ANNUAL HYDE AMENDMENT DEBATES ABOUT THE FEDERAL FUNDING OF ABORTION THAT MESSAGE IS VIRTUALLY UNCHANGED EVEN WITH A STRONGLY PROCHOICE PRESIDENT IN THE WHITE HOUSE BUT NOW ON A SCALE THAT BEGGARS THE IMAGINATION THE CLINTON ADMINISTRATION IS SEEKING TO IGNORE THE GENUINE DIVISIONS THAT EXIST ON THIS ISSUE BY INSTITUTIONALIZING ABORTION AS A MEDICAL RIGHT EMPLOYERS WILL BE COERCED INTO HELPING TO PAY FOR THIS RIGHT BECAUSE ABORTION WILL BE MANDATED AS ONE OF THE CORE BENEFITS THAT EVERY INSURER MUST OFFER REVEALINGLY THE ACTUAL HEALTH CARE LEGISLATION DOES NOT USE THE WORD ABORTION BUT ABORTION SUPPORTERS HAVE ALREADY FORCED BOTH BILL AND HILLARY CLINTON TO PUBLICLY ADMIT THAT THE CODE PHRASE PREGNANCYRELATED SERVICES INCLUDES ABORTION AS WELL AS SUCH NECESSARY GOODS AND SERVICES AS PRENATAL CARE THE CLINTON HEALTH CARE PACKAGE IS A MORAL TROJAN HORSE USING THE PERCEIVED CRISIS IN HEALTH CARE TO SUBVERT THE CURRENT MORAL DEBATE ABOUT ABORTION IN AMERICA THE PLAN'S SOCALLED EMPLOYERMANDATE PROVISIONS WILL MEAN THAT EVERY EMPLOYER NO MATTER HOW MORALLY OPPOSED TO ABORTION WILL BE GIVEN NO CHOICE BUT TO PAY FOR THE EXTINGUISHING OF UNBORN HUMAN LIVES THE WHITE HOUSE HAS TAKEN TO TRUMPETING ITS CONSCIENCE CLAUSE A LEGAL EXCEPTION THAT WOULD BE GRANTED TO THOSE HOSPITALS AND DOCTORS THAT WOULD OBJECT TO PERFORMING ABORTIONS BUT SUCH A CLAUSE NECESSARY AS IT IS DOES NOT IN ANY WAY PROTECT HOSPITALS OR DOCTORS AS EMPLOYERS THEY WOULD STILL BE SUBJECT TO THE EMPLOYER MANDATE AND WOULD BE REQUIRED TO PAY FOR AN ABORTION OBTAINED BY AN EMPLOYEE OR A MEMBER OF HIS OR HER FAMILY THE CLINTONS ALSO SAY THAT THEIR PROPOSAL WILL NOT EXPAND ABORTION COVERAGE CLAIMING THAT ALMOST ALL PRIVATE INSURANCE PLANS COVER ABORTION BUT SOME STATES HAVE IN FACT BANNED ABORTION AS A REQUIRED ELEMENT OF BASIC INSURANCE PLANS A BAN THAT HAS WITHSTOOD JUDICIAL CHALLENGE THE AVAILABLE EVIDENCE SUGGESTS THAT ABORTION COVERAGE IS MORE COMMON IN HEALTH MAINTENANCE ORGANIZATIONS BUT IS LESS COMMON IN FEEFORSERVICE AND EMPLOYERS' SELFFUNDED PLANS WHICH COVER 65 OF AMERICAN WORKERS THE BOTTOM LINE HOWEVER IS THAT THE DECISION OF WHETHER TO OFFER ABORTION COVERAGE WILL NO LONGER BE LEFT TO THE EMPLOYER CHURCHES COMPANIES AND ORGANIZATIONS OBJECTING TO THIS COERCIVE ATTEMPT TO REVOLUTIONIZE THE NATION'S ABORTION POLICY WOULD DO WELL TO BAND TOGETHER AND SPEAK OUT NOW WHEN THE FINAL SHAPE OF THE HEALTH CARE REFORM IS STILL IN FLUX OTHERWISE IN THE NOT TOO DISTANT FUTURE THE ONLY WORDING THAT WILL MATTER ON THE NATION'S ABORTION BILLS WILL BE PAYMENT DUE IN 30 DAYS MR ERLANDSON IS EDITORINCHIEF OF OUR SUNDAY VISITOR THE NATION'S LARGEST CATHOLIC PUBLISHING HOUSE BASED IN HUNTINGTON IND SEE RELATED LETTER LETTERS TO THE EDITOR SEPARATION OF CHURCH AND HEALTH CARE WSJ DEC 8 1993 9311260141 YY93 MM12 9312080110 931124 WRONG WAY TO A MOTHERFRIENDLY WORKPLACE BY KAREN KOMAN LIFE MAGAZINE'S DECEMBER ISSUE WITH ITS COVER OF A NUDE MOTHER AND NURSING INFANT AT HER BREAST HAS SOME STORE OWNERS SCURRYING TO REMOVE IT FROM THE USUAL DISPLAY AREAS THE SUBJECT OBVIOUSLY MAKES SOME PEOPLE UNCOMFORTABLE SMALL WONDER THEN THAT WHEN CYNTHIA MANFREDI MD HAD TO PUMP BREAST MILK FOR HER INFANT DAUGHTER SHE WENT INTO THE SUPPLY ROOM OF THE CHICAGO HOSPITAL WHERE SHE WORKED SURROUNDED BY SALINE SOLUTION AND CARDIOFIBULATORS SHE WOULD STAND IN THIS GRIM LITTLE CLOSET AND EXPRESS HER MILK A SCENE SHE DESCRIBED IN A NEWSPAPER INTERVIEW THANKS TO THIS CRUSADING DOCTOR WHO NOW WORKS AT AMOCO CORP NURSING MOTHERS HAVE A SPARKLING NEW LACTATION STATION FOUR CUBICLES EACH WITH ITS OWN ELECTRIC BREAST PUMP ON THE 38TH FLOOR OF AMOCO'S CHICAGO HEADQUARTERS THIS NEIMAN MARCUS OF NURSING STATIONS PROVIDES PADDED ARMCHAIRS PRIVACY CURTAINS GLOSSY MAGAZINES AND LACTATION CONSULTANTS AMOCO SPENDS 12000 ANNUALLY TO RUN THIS MARVEL AND THIS SUMMER WAS ONE OF 15 US COMPANIES CITED BY UNICEF AS A MOTHERFRIENDLY WORKPLACE JUST WHEN IT LOOKS AS IF THE NATIONAL DEBATE OVER WOMEN'S RIGHTS IS ON A HIGHER PLANE ALONG COMES THE LATEST RIDICULOUS BATTLEGROUND THE OFFICE LACTATION ROOM WORKING MOTHERS ACROSS THE COUNTRY HAVE STARTED CALLING FOR SPECIAL DESIGNATED PLACES TO PUMP BREAST MILK STOKING THE ISSUE ARE ABSURD MEDIA ACCOUNTS OF LACTATING WOMEN WHO HUNCH OVER TOILETS CRINGE AS THEIR BREAST PUMPS SQUEAK AND BARRICADE THEMSELVES IN SPARE OFFICES SO COWORKERS DON'T SURPRISE THEM THE JEFFERSON CITY MO DEPARTMENT OF HEALTH JUST SPENT 1300 TO BUILD A LACTATION ROOM FOR ITS EMPLOYEES THIS AFTER A STATE DIETITIAN TOLD THE ASSOCIATED PRESS THAT TO PUMP MILK IN A RESTROOM IS LIKE TELLING SOMEONE TO GO EAT YOUR LUNCH IN THE BATHROOM SOME MISSOURI LAWMAKERS DECLARE THIS UNAUTHORIZED USE OF STATE FUNDS AND THE LACTATION ROOM AN AVANTGARDE THING I DON'T THINK IT'S AVANTGARDE I THINK IT'S UNNECESSARY TO DEMYSTIFY THE ISSUE FOR NONPARENTS MOTHER'S MILK CAN BE EXPRESSED AND STORED FOR BABY'S ONTIME FEEDING BY THE BABYSITTER ALL THAT IS NEEDED IS A FREE 10 MINUTES IN THE WORKPLACE RESTROOM A CHAIR TO SIT ON AND A PUMP IT CAN BE A MANUAL PUMP THAT FITS EASILY INTO A PURSE ALSO A PLACE TO STORE THE MILK A SMALL INSULATED BAG FOR THE BOTTLE IS FINE I'VE KNOWN WORKING MOTHERS TO PUMP MILK WHILE IN CARS PLANES AND IN THE BACK OF A TV NEWS VAN ON THE WAY TO A STORY IT'S IRONIC THAT THE SAME WOMEN WHO UNDOUBTEDLY WOULD BE INCENSED IF BREASTFEEDING IN PUBLIC WERE BANNED ARE LOBBYING FOR PRIVATEOFFICE SPACE FOR PUMPING BREAST MILK PART OF THIS COMES FROM WOMEN'S UNFORTUNATE NEUROSES ABOUT THEIR BODIES AND BODY IMAGE VISIT ANY HEALTH CLUB AND YOU'LL FIND SEPARATE SHOWER STALLS FOR WOMEN NOT THE VAST COMMUNAL SHOWERS OF MEN'S LOCKER ROOMS UPTIGHT AS WE ARE ABOUT OUR BODIES WE ROUTINELY SHY AWAY FROM HAVING EVEN OUR OWN SEX SEE US PARTIALLY DISROBED LET'S FACE IT IF MEN HAD OPERATIVE BREASTS THEY WOULD BLITHELY PUMP MILK ALONGSIDE THE OFFICE WATER COOLERS AND BRAG ABOUT WHO PRODUCED THE MOST MILK WHEN I WORKED AT A ST LOUIS TV STATION ANOTHER REPORTER WHO WAS A NEW MOTHER CHOSE TO FEED HER BABY BREAST MILK NATURALLY SUPERIOR TO FORMULA AS LONG AS POSSIBLE SHE MATTEROFFACTLY SET UP HER ELECTRIC PUMP ON THE COUNTER IN THE WOMEN'S LOUNGE WHEN ANY OF US HEADED FOR THE TOILETS SHE WOULD GREET US WITH PERFECT EQUANIMITY AND GO BACK TO HER TASK NO BIG DEAL TO HER OR TO US IT'S AN UNFAIR EXTRAVAGANCE THAT WOULD HAVE EMPLOYERS SURRENDER SPACE AND THOUSANDS OF DOLLARS FOR STATEOFTHEART LACTATION ROOMS TO SEEK SUCH ACCOMMODATIONS UNDERSCORES THE ODDLY PRUDISH PERCEPTION THAT HUMAN BREAST MILK IS UNNEEDED UNSPEAKABLE AND THEREFORE UNACCEPTABLE EVEN SO THIS IS AN ANCILLARY WOMEN'S ISSUE AND DETRACTS FROM THE IMPORTANT ONES SALARY PARITY ALTERNATE WORK SCHEDULES DECENT MATERNITY LEAVES AND ONPREMISES DAY CARE SUCH REAL BENEFITS WOULD TRULY MAKE THE WORKPLACE MOTHERFRIENDLY MS KOMAN IS A MOTHER AND JOURNALIST IN ST LOUIS MO SEE RELATED LETTER LETTERS TO THE EDITOR HOW ABOUT THE MILK OF HUMAN KINDNESS WSJ DEC 8 1993 9311240093 YY93 MM12 9312080104 931115 THE INDEPENDENT BLACK VOTER BY ROBERT WOODSON ED ROLLINS'S STATEMENT LAST WEEK LATER RETRACTED THAT THE SUCCESSFUL GUBERNATORIAL CAMPAIGN OF CHRISTINE TODD WHITMAN DONATED WALKING AROUND MONEY TO SUPPRESS THE BLACK VOTE IN NEW JERSEY SHOULD IGNITE AN ANGRY REPRISAL AND NOT JUST BECAUSE IT BREATHES LIFE INTO AN ELITIST FALSE AND DEMEANING VIEW OF BLACK VOTERS THE ROLLINS STATEMENTS INDICT THE STRONGEST INSTITUTION IN THE BLACK POPULATION THE CHURCH WHILE ALSO PERPETUATING A NUMBER OF UNFORTUNATE AND MISLEADING TRENDS RELATED TO BLACK POLITICAL ACTIVITY LEFT OUT OF MANY ACCOUNTS OF THE ROLLINS AFFAIR IS THE DAMAGE THAT HIS STATEMENTS HAVE DONE TO THE BLACK RELIGIOUS TRADITION AT A TIME WHEN A LARGE PORTION OF THE PROBLEMS FACING BLACKS ARE MORAL IN NATURE RANGING FROM OUTOFWEDLOCK BIRTH TO DRUG USE RELIGION OFFERS ONE OF THE FEW REFUGES BUT MR ROLLINS IN ASSERTING THAT A FEW BLACK MINISTERS ARE ON THE TAKE STRIKES A GREAT BLOW TO ALL BLACK MINISTERS AND REDUCES THEM TO NOTHING MORE THAN CYNICAL POLITICAL OPERATIVES IN THE PROCESS THE ALLEGATIONS ALSO RAISE THE PROFILE OF MISERY MERCHANTS LIKE THE REVS JESSE JACKSON AND AL SHARPTON WHO WRAP THEMSELVES IN RELIGIOUS CLOTHING BUT WHO HAVE PERSONAL AND PARTISAN MOTIVES IN CALLING FOR INVESTIGATIONS OF THE WHITMAN CAMPAIGN RELIGION IS ONLY ONE PART OF THE EQUATION HOWEVER THE POLITICAL EMPOWERMENT OF BLACKS ESPECIALLY IN THE POSTVOTING RIGHTS ACT ERA HAS LED TO THE ANOINTMENT OF A FEW BLACK POWER BROKERS WHO ARE REGULARLY LOOKED TO BY POLITICAL CANDIDATES AS FIGURES WHO CONTROL BLACK VOTES THIS PATERNALISTIC NOTION THAT BLACKS ARE MANIPULABLE PAWNS WHO WAIT FOR THE COLLECTIVE NODS OF THEIR LEADERS BEFORE THEY DARE TO ACT IS REINFORCED BY MR ROLLINS'S ASSERTIONS THAT KEEPING BLACK MINISTERS FROM PREACHING ABOUT THE ELECTION WOULD KEEP BLACKS FROM VOTING FOR JIM FLORIO THE SHORTCOMINGS OF A POWER BROKER STRATEGY HAVE BEEN HIGHLIGHTED BY A SERIES OF RECENT ISSUEBASED POLLS REVEALING THE BLACK POPULATION TO BE FIERCELY INDEPENDENT REGARDING ISSUES THAT AFFECT THEIR LIVES AND THEIR CHILDREN'S FUTURES FOR EXAMPLE A RECENT STUDY BY THE WASHINGTONBASED JOINT CENTER FOR POLITICAL AND ECONOMIC STUDIES SHOWED THAT ALTHOUGH A DISPROPORTIONATE SHARE OF BLACKS IN LEADERSHIP POSITIONS OPPOSED A SCHOOL VOUCHER PROGRAM 88 OF THEIR CONSTITUENTS WHO WERE SURVEYED WERE IN FAVOR OF SCHOOL CHOICE ANOTHER STUDY BY THE JOINT CENTER RELEASED LAST YEAR FOUND THAT 33 OF BLACKS IDENTIFY THEMSELVES AS CONSERVATIVE WHILE MODERATE RECEIVED 30 AND LIBERAL ONLY 28 THESE NUMBERS ILLUSTRATE THE GULF BETWEEN THE BLACK RANKANDFILE AND THE SELFPROCLAIMED BLACK LEADERS WHO ARE ALMOST UNIFORMLY IN THE LIBERAL CAMP NEITHER THE CIVIL RIGHTS LEADERSHIP NOR BLACK PASTORS HAVE THE POWER TO DICTATE HOW THEIR CONSTITUENTS WILL THINK AND ACT STRATEGIES BASED ON THE ASSUMPTION THAT THEY DO HAVE BEEN LAUGHABLE FAILURES BRET SCHUNDLER'S MAYORAL VICTORY IN JERSEY CITY IS AN EXCELLENT CASE IN POINT TO DEFEAT THIS REPUBLICAN THE DEMOCRATIC NATIONAL COMMITTEE INVESTED 35000 TO IMPORT THE SERVICES OF THE MOST FAMOUS BLACK MINISTER THE REV JESSE JACKSON TO SHEPHERD BLACK VOTERS TO THE OTHER SIDE THE RESULTS MR SCHUNDLER GARNERED 40 OF THE BLACK VOTE BLACK VOTERS ALSO EXHIBITED THEIR INDEPENDENT THINKING IN THE RECENT MAYORAL ELECTION IN DETROIT WHERE IN SPITE OF OPPOSITION FROM A NUMBER OF BLACK PASTORS DEMOCRAT DENNIS ARCHER WON HIS SEAT WITH MAJORITY SUPPORT FROM BLACK VOTERS POLITICAL INDEPENDENCE AMONG BLACKS IS NOT A NEW TREND IN 1985 NEW JERSEY GOV TOM KEAN A WHITE REPUBLICAN WON REELECTION WITH A WHOPPING 60 OF THE BLACK VOTE SIMILARLY IN 1974 WHEN BLACK RADICAL LEROI JONES NOW AMIRI BARAKA RALLIED MORE THAN 60 MINISTERS TO OPPOSE THE REELECTION OF BLACK DEMOCRAT KEN GIBSON AS NEWARK'S MAYOR BLACKS MADE THEIR CHOICE INDEPENDENTLY AND BY AN OVERWHELMING MAJORITY VOTED TO RETURN MR GIBSON TO HIS SEAT BLACKS WHO VOTED FOR MR SCHUNDLER OR FOR MRS WHITMAN WERE NOT PEOPLE WHOSE POCKETS WERE BULGING WITH WALKING AROUND FUNDS THEY WERE PARENTS CONCERNED ABOUT THE QUALITY OF EDUCATION THEIR CHILDREN WERE RECEIVING THEY WERE HARDWORKING INDIVIDUALS WHO WANTED THEIR TAX DOLLARS USED MOST EFFECTIVELY AND EFFICIENTLY THEY WERE PEOPLE WHO RESONATED WITH THE VALUES AND ISSUES PROMOTED BY THE CANDIDATES WHO WON THEIR VOTE IT FOLLOWS THAT WHEN MR SCHUNDLER AND MRS WHITMAN TALKED ABOUT ISSUES LIKE SCHOOL CHOICE TAX CUTS AND TRADITIONAL VALUES VOTERS BUT PARTICULARLY BLACK VOTERS RESPONDED LET THIS BE A LESSON FOR OTHER REPUBLICAN CANDIDATES WHO ALL TOO OFTEN EXPECT THEIR SUPPORT FOR CIVIL RIGHTS TO AUTOMATICALLY WIN THEM BLACK SUPPORT THE STATEMENTS BY MR ROLLINS ARE EVIDENCE OF HIS FAILURE TO TRUST THE POWER OF HIS OWN CANDIDATE'S MESSAGE HE WOULD HAVE SERVED HER FAR BETTER HAD HE USED HIS AUTHORITY TO PROMULGATE HER STAND ON THE ISSUES INSTEAD OF BRAGGING ABOUT THE SUPPRESSION OF VOTES THAT HE WRONGLY ASSUMED TO BE PREORDAINED FOR HER OPPONENT MR WOODSON IS PRESIDENT OF THE NATIONAL CENTER FOR NEIGHBORHOOD ENTERPRISE IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR PROFILE OF BLACK VOTERS IS HARDLY CONSERVATIVE WSJ DEC 8 1993 9311150066 YY93 MM12 9312080142 931028 LETTERS TO THE EDITOR WHY WE REJECTED ALZHEIMER'S DRUG YOUR OCT 5 EDITORIAL PAGE CARRIED AN OPINION PIECE BY HARRY SCHWARTZ HMOS ANOTHER ROADBLOCK FOR ALZHEIMER'S DRUG REPORTING THAT THE NEW ALZHEIMER'S DRUG TACRINE COGNEX WAS UNDER SCRUTINY FROM A NUMBER OF HEALTH CARE ORGANIZATIONS INCLUDING OURS THE NORTHERN CALIFORNIA REGION OF KAISER PERMANENTE MR SCHWARTZ CRITICIZED OUR REVIEW OF THE DRUG SUGGESTING THAT REVIEWS OF THIS TYPE AND TREATMENT DECISIONS BASED ON THOSE REVIEWS ARE AN EXAMPLE OF MANAGED CARE AT ITS WORST BUT A FURTHER EVALUATION OF THE PROCESS THAT WENT INTO OUR DECISION SUGGESTS ANOTHER CONCLUSION THAT THIS IS AN EXAMPLE OF MANAGED CARE AT ITS BEST SINCE THE PROCESS HIGHLIGHTS PATIENT PROTECTION THROUGH ITS FOCUS ON ASSURING THE SAFETY AND EFFICACY OF DRUGS PRESCRIBED FOR OUR PATIENTS DECISIONS IN OUR PROCESS ARE MADE BY PHYSICIANS AND PHARMACISTS NOT BY ADMINISTRATORS COST WAS NOT A FACTOR IN THE TACRINE DECISION IN FACT THERE ARE MANY FAR MORE EXPENSIVE DRUGS ON OUR KAISER PERMANENTE NORTHERN CALIFORNIA REGION FORMULARY INCLUDING THOSE THAT ARE THE SOLE AVAILABLE MEDICATION FOR A PARTICULAR DISEASE IN SITUATIONS WHERE MORE THAN ONE DRUG EXISTS FOR TREATMENT OF A DISEASE WE EVALUATE THEM FIRST FOR SAFETY AND EFFICACY IF BOTH OR ALL ARE ESSENTIALLY EQUAL IN SAFETY AND EFFECTIVENESS WE THEN SEEK THE LEAST COSTLY THAT IS THE WAY IT SHOULD BE IF WE AND OTHER HEALTH CARE PROVIDERS ARE GOING TO BE RESPONSIVE TO SOCIETY'S NEED TO REDUCE UNNECESSARY MEDICAL COSTS WHILE ASSURING THE QUALITY OF MEDICAL CARE MR SCHWARTZ SUGGESTS THAT PHYSICIANS IN OUR ORGANIZATION ARE UNDER PRESSURE TO PRESCRIBE DRUGS OR EVEN TO PRACTICE MEDICINE WITHIN STRICT GUIDELINES THE REALITY IS THAT THE ONLY STANDARDS WE HOLD OUR PHYSICIANS TO ARE THE STANDARDS OF QUALITY CARE TACRINE IS NOT A NEW DRUG IT WAS FIRST STUDIED IN REGARD TO ALZHEIMER'S PATIENTS IN THE MID1980S THE FIRST STUDY RECEIVED INTENSE SCRUTINY FROM THE SCIENTIFIC COMMUNITY AND THE DATA AND STUDY WERE SUBSEQUENTLY DISCREDITED RESULTS OF SEVERAL NEW STUDIES PUBLISHED LAST YEAR WERE MET WITH MODEST ENTHUSIASM BY THE MEDICAL COMMUNITY SINCE TACRINE WAS FOUND TO PROVIDE SOME SYMPTOMATIC RELIEF IN A SMALL NUMBER OF PATIENTS BUT THE IMPROVEMENTS WERE SLIGHT SIGNIFICANTLY THE DRUG WAS NOT WELL TOLERATED BY THE PATIENTS MOST OF WHOM WERE ELDERLY NAUSEA VOMITING DIARRHEA HEADACHE AND MUSCLE ACHES WERE COMMON AS WERE ABNORMAL BLOOD TESTS INDICATING LIVER TOXICITY DESPITE ITS PROBLEMS AND THE RESERVATIONS ABOUT IT TACRINE REPRESENTED THE ONLY POTENTIAL TREATMENT FOR AN INCURABLE DISEASE AND WAS APPROVED FOR LICENSING BY THE FDA FOLLOWING THAT APPROVAL WE IN KAISER PERMANENTE'S NORTHERN CALIFORNIA REGION INITIATED OUR PROCESS FOR DECIDING IF THE DRUG WAS EFFECTIVE AND SAFE ENOUGH TO RECOMMEND FOR GENERAL USAGE FOR OUR ALZHEIMER'S PATIENTS FIRST OUR 15 CHIEFS OF NEUROLOGY AND THEN OUR FORMULARY COMMITTEE OF PHYSICIANS AND PHARMACISTS REVIEWED THE AVAILABLE DATA AND DISCUSSED DIFFERENT ASPECTS OF CARE THERE WAS ACKNOWLEDGEMENT THAT THERE MAY BE PATIENTS WITH EARLY ALZHEIMER'S WHO ARE AFFLICTED WITH AMNESTIC MEMORY DEFICIT WHO MIGHT BENEFIT FROM THE MEDICINE BUT THE MAJORITY OF PATIENTS WOULD NOT THE RESULTS WERE TOO PRELIMINARY THE RISKS FOR PATIENTS TOO HIGH THE BENEFITS MINIMAL THE DECISION BASED SOLELY ON THE CRITERIA OF THE DRUG'S SAFETY AND EFFECTIVENESS WAS UNANIMOUS THIS WAS NOT A DRUG WE WOULD RECOMMEND FOR GENERAL USAGE IT WOULD THEREFORE NOT BE PLACED ON OUR FORMULARY WHAT DOES THIS DECISION MEAN FOR OUR PATIENTS AND OUR PHYSICIANS FIRST IT IS IMPORTANT TO UNDERSTAND THAT AT KAISER PERMANENTE OUR FORMULARLY IS ONLY ADVISORY PHYSICIANS ARE NOT STRICTLY BOUND BY IT MEDICINES THAT ARE NOT LISTED ON THE FORMULARY ARE STILL PAID FOR IF PATIENTS HAVE PRESCRIPTION COVERAGE BECAUSE OUR FORMULARY HAS BEEN CREATED BY EXPERTS IN THEIR FIELDS AMONG OUR NEARLY 3500 PHYSICIANS THE FORMULARY CARRIES A LOT OF WEIGHT IT DOES NOT HOWEVER TAKE PRECEDENCE OVER THE PATIENTDOCTOR RELATIONSHIP INDIVIDUAL TREATMENT DECISIONS BY PHYSICIANS HAVE ALWAYS BEEN MOST HIGHLY VALUED IN OUR GROUP AND WILL CONTINUE TO BE EVIDENCE OF THAT IS THE FACT THAT ABOUT 10 OR SOME 30 MILLION35 MILLION OF THE COST OF DRUGS PRESCRIBED BY OUR PHYSICIANS WAS FOR DRUGS NOT ON OUR FORMULARY SEE RELATED LETTER LETTERS TO THE EDITOR ALZHEIMER'S DRUG NEEDS INDIVIDUALLY SET DOSE WSJ DEC 8 1993 9310280089 YY93 MM12 9312070174 931207 CLINTON AIDES SEEK TO BOOST US OIL DRILLING ENERGY PRODUCERS ALSO FACE CRACKDOWN ON ROYALTIES ALLEGEDLY LEFT UNPAID BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PREPARING TO UNVEIL AN INITIATIVE TO STIMULATE DOMESTIC ENERGY PRODUCTION BUT ALSO IS CONSIDERING WHETHER TO CHARGE MAJOR CALIFORNIA OIL PRODUCERS 422 MILLION FOR ALLEGEDLY UNPAID ROYALTIES DATING BACK TO 1960 THE GASANDOIL INITIATIVE TO BE ANNOUNCED BY THE ENERGY DEPARTMENT THURSDAY WILL LAUNCH GOVERNMENT STUDIES AIMED AT FINDING WAYS TO INCREASE OFFSHORE DRILLING IN THE GULF OF MEXICO REDUCING REGULATORY BURDENS ON OIL REFINERS AND EXPANDING TAX BREAKS FOR OIL PRODUCERS THE INITIATIVE APPEARS TO CONFLICT WITH A PROPOSAL THE INTERIOR DEPARTMENT IS CONSIDERING TO COLLECT BETWEEN 200 MILLION AND 422 MILLION FROM SEVERAL UNSPECIFIED MAJOR CALIFORNIA OIL PRODUCERS TO COVER A POSSIBLE SHORTFALL IN ROYALTY PAYMENTS DUE THE FEDERAL GOVERNMENT BETWEEN 1960 AND 1992 THAT PROPOSAL INCLUDED IN A REPORT FROM THE DENVER OFFICE OF THE DEPARTMENT'S MINERALS MANAGEMENT SERVICE FOLLOWS RECENT SETTLEMENTS THE CITY OF LONG BEACH CALIF AND THE STATE OF CALIFORNIA REACHED WITH SEVERAL MAJOR OIL COMPANIES THE CITY AND STATE GOVERNMENTS HAD ALLEGED THE COMPANIES LOWERED LOCAL ROYALTY PAYMENTS BY KEEPING POSTED CRUDEOIL PRICES LOWER THAN ACTUAL VALUE THE COMPANIES THAT AGREED TO SETTLE WERE ATLANTIC RICHFIELD CO WHICH PAID 225 MILLION UNOCAL CORP WHICH PAID 77 MILLION AND TEXACO INC CHEVRON CORP MOBIL CORP AND ROYAL DUTCH/SHELL GROUP'S US UNIT WHICH EACH PAID 45 MILLION EXXON CORP STILL IS LITIGATING THE MATTER JOHN BARCLAY A SPOKESMAN FOR THE INTERIOR DEPARTMENT'S MINERALS MANAGEMENT SERVICE IN WASHINGTON SAID THE DENVER OFFICE'S REPORT IS JUST A WORKING DOCUMENT AMONG THE UNRESOLVED QUESTIONS HE SAID WERE WHETHER ANY EFFORT TO RETRIEVE THE MONEY WOULD BE COST EFFECTIVE AND WHETHER THE STATUTE OF LIMITATIONS HAS EXPIRED FOR COLLECTING THE LARGEST PORTION OF THE ALLEGEDLY UNPAID ROYALTIES THE OFFSHOREDRILLING STUDY THAT WILL BE PROPOSED IN THE OILANDGAS INITIATIVE WILL BE UNDERTAKEN JOINTLY BY THE ENERGY AND INTERIOR DEPARTMENTS IT WILL EXAMINE A VARIETY OF OPTIONS TO INCREASE EXPLORATION IN LESSDEVELOPED TRACTS THAT HAVE ATTRACTED MINIMAL ATTENTION SO FAR ACCORDING TO DEPUTY ENERGY SECRETARY WILLIAM WHITE THE OPTIONS INCLUDE ALLOWING PRODUCERS TO RECOVER CERTAIN COSTS BEFORE MAKING ROYALTY PAYMENTS REDUCING ROYALTY PAYMENTS FOR CERTAIN FUTURE LEASES AND LOWERING THE MINIMUM BID TO ACQUIRE LEASING RIGHTS THE DEREGULATION STUDY WILL BE PERFORMED BY THE ENERGY DEPARTMENT AND THE ENVIRONMENTAL PROTECTION AGENCY IT WILL EXAMINE THE POSSIBILITY OF ADOPTING SITESPECIFIC REGULATORY STANDARDS FOR OIL REFINERS UNDER THE CLEAN AIR ACT THE INDUSTRY CONSIDERS THE CURRENT UNIFORM STANDARDS TOO RIGID ON THE TAX FRONT THE ADMINISTRATION IS CONSIDERING MOREGENEROUS EXPENSING RULES FOR PRODUCERS' GEOLOGICAL AND GEOPHYSICAL COSTS IT ALSO WILL REVIEW POSSIBLE TAX CHANGES TO PROMOTE OIL PRODUCTION IN MARGINAL STRIPPER WELLS OVERALL THE OILANDGAS INITIATIVE HAS BEEN SCALED BACK CONSIDERABLY FROM THE AMBITIOUS PACKAGE OF TAX INITIATIVES RESEARCHANDDEVELOPMENT SUBSIDIES AND REGULATORYRELIEF MEASURES LISTED EARLIER THIS YEAR IN A DRAFT OF THE MEASURE MANY OF THESE ITEMS ENERGY DEPARTMENT OFFICIALS LATER SAID REPRESENTED ONLY A WISH LIST COLLECTED FROM INDUSTRY OTHERS WERE REJECTED AT THE INSISTENCE OF THE TREASURY AND A BUDGETCONSCIOUS WHITE HOUSE BUT MR WHITE IN AN INTERVIEW DEFENDED THE FINAL PLAN AS A VERY MAJOR STEP IN THE RIGHT DIRECTION ALBEIT ONLY ONE STEP OUT OF MANY THAT NEED TO BE TAKEN 9312070173 931207 WHO'S NEWS KODAK'S TOP FEMALE EXECUTIVE RESIGNS TO BE PRESIDENT CEO AT WH BRADY BY TIMOTHY D SCHELLHARDT STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO'S TOPRANKING FEMALE EXECUTIVE RESIGNED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WH BRADY CO A COMPANY ONETENTH THE SIZE OF THE DIVISION SHE HEADED AT KODAK THE DEPARTURE OF KATHERINE M HUDSON 46YEAROLD VICE PRESIDENT AND GENERAL MANAGER OF KODAK'S PROFESSIONAL PRINTING AND PUBLISHING IMAGING DIVISION SURPRISED THE HUGE PHOTOGRAPHICPRODUCTS CONCERN BASED IN ROCHESTER NY AT MILWAUKEEBASED BRADY WHICH MAKES COATED FILM AND INDUSTRIAL IDENTIFICATION PRODUCTS SHE WILL SUCCEED PAUL G GENGLER 62 WHO IS RETIRING HER APPOINTMENT IS EFFECTIVE JAN 1 MS HUDSON A CAREER KODAK EMPLOYEE AND A CORPORATE VICE PRESIDENT SINCE JANUARY 1988 IS CREDITED WITH TRIPLING EARNINGS IN KODAK'S GRAPHIC ARTS BUSINESS IN THE 18 MONTHS SHE HEADED THE PRINTING AND PUBLISHING IMAGING DIVISION BETWEEN JANUARY 1992 AND LAST JUNE HER DUTIES EXPANDED WHEN THE PROFESSIONAL IMAGING DIVISION WAS COMBINED WITH HER DIVISION IN JUNE IN AN INTERVIEW MS HUDSON SAID THAT SHE KIND OF GOT HOOKED ON BRADY AND REALLY INTRIGUED ABOUT THE 80YEAROLD COMPANY AFTER AN EXECUTIVE RECRUITER APPROACHED HER OVER THE SUMMER ABOUT THE POSITION I USUALLY SAY THANKS BUT NO THANKS' WHEN A HEADHUNTER CALLS SHE SAID BUT AFTER FORMER KODAK CEO KAY WHITMORE ANNOUNCED HE WAS LEAVING IN AUGUST I THOUGHT MAYBE I SHOULD LISTEN TO THE GUY MS HUDSON SAID SHE HASN'T EVEN MET GEORGE FISHER KODAK'S NEW CEO THAT'S SORT OF GOOD NEWS SINCE AS I UNDERSTAND IT HIS PRIORITIES HAVE BEEN TO DEAL WITH PROBLEMS FIRST BRADY HAD ANNUAL SALES OF 243 MILLION IN THE YEAR ENDED JULY 31 AND EARNED 169 MILLION OR 233 A SHARE TO DESCRIBE THE SIZE OF HER KODAK DIVISION MS HUDSON SAID JUST STICK ANOTHER ZERO AT THE END OF BRADY'S SALES AT BRADY SHE EXPECTS TO FOCUS ON WHAT SHE CALLS THE TWO GS GLOBALIZATION AND VALUECREATING GROWTH INTERNATIONAL SALES ACCOUNT FOR ABOUT ONETHIRD OF BRADY'S REVENUE AND SHE SEES THAT PERCENTAGE INCREASING TO ABOUT 50 MS HUDSON IS KNOWN FOR BEING AN OUTSPOKEN EXECUTIVE WHO KEEPS COMBAT BOOTS A SWORD AND A HOCKEY STICK IN HER OFFICE AND HAS BEEN UNAFRAID TO VOICE HER CRITICISM OF THE PROBLEMPLAGUED KODAK DURING HER TENURE WITH KODAK SHE TOOK GREAT LENGTHS TO BE ACCESSIBLE SOMETIMES HAVING DELI DAYS WHERE EMPLOYEES TOOK A NUMBER FROM A DELICATESSEN DISPENSER OUTSIDE HER DOOR AND WAITED TO TALK SHE SAYS THAT BECAUSE BRADY IS A SMALLER COMPANY OF 2000 EMPLOYEES SHE EXPECTS TO SPEND MORE TIME OUTSIDE THE OFFICE THAN INSIDE SHE ALSO SAYS SHE WILL BRING HER COMBAT BOOTS AND OTHER STUFF WITH HER TO BRADY AT KODAK A SUCCESSOR TO HER SLOT IS EXPECTED TO BE NAMED WITHIN A WEEK 9312070172 931207 INTERNATIONAL JAPAN'S LEADER SEEMS TO BACK AWAY FROM STIMULUS PLAN BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO PRIME MINISTER MORIHIRO HOSOKAWA AND OTHER JAPANESE OFFICIALS SEEMED TO BACKTRACK YESTERDAY FROM STATEMENTS MADE LAST WEEK SUGGESTING THEY WERE HAMMERING TOGETHER A NEW EMERGENCY ECONOMIC PACKAGE TO ADDRESS THE NATION'S WORSENING RECESSION THE CHANGE OF TONE IS ANOTHER INDICATION OF THE TROUBLES MR HOSOKAWA IS HAVING TRYING TO FORGE ECONOMIC POLICY AND PROMOTE HIS LEGISLATIVE AGENDA LAST WEEK'S ENCOURAGING WORDS ABOUT ADDITIONAL STIMULUS MEASURES HALTED A STOCKMARKET COLLAPSE THE APPARENT EVAPORATION OF THE PLANS YESTERDAY REIGNITED THE SLIDE AS THE NIKKEI 225STOCK INDEX FELL 61897 POINTS OR 36 TO CLOSE THE DAY AT 1684038 MEANWHILE THE OPPOSITION LIBERAL DEMOCRATIC PARTY IS SHOWING NEW STRENGTH AND WILLINGNESS TO GRIND THE GOVERNMENT TO A HALT MR HOSOKAWA IS TRYING TO WIN RAPID PARLIAMENTARY APPROVAL FOR THE ECONOMIC STIMULUS PACKAGE THAT HE ANNOUNCED IN SEPTEMBER BUT HE LOST ANOTHER CRUCIAL DAY YESTERDAY WHEN THE LDP TURNED BUDGET HEARINGS INTO AN INQUISITION ON CAMPAIGN CONTRIBUTIONS MR HOSOKAWA HAD RECEIVED FROM A SCANDALTAINTED TRUCKING COMPANY THE LDP IS ALSO REPORTEDLY GUMMING UP THE DELIBERATIONS BY RAISING QUESTIONS ABOUT MEDIA BIAS AND THE SEPARATION OF CHURCH AND STATE ANOTHER STORM CLOUD EMERGED FROM WITHIN MR HOSOKAWA'S SEVENPARTY COALITION A TOP OFFICIAL OF THE SOCIALIST PARTY THE LARGEST GROUP IN THE GOVERNING ALLIANCE SAID HIS PARTY WAS OPPOSED TO A PROPOSAL TO END JAPAN'S BAN ON RICE IMPORTS IN AN ATTEMPT TO WRAP UP THE LATEST ROUND OF GLOBAL TRADE TALKS THE US HAS AGREED TO LET JAPAN WAIT SIX YEARS BEFORE REPLACING THE BAN WITH TARIFFS IN RETURN JAPAN WOULD HAVE TO ALLOW MINIMUM ACCESS TO IMPORTS DURING THAT PERIOD MR HOSOKAWA IS EXPECTED TO ACCEPT THAT PROPOSAL AS SOON AS TODAY BUT STRONG SOCIALIST OPPOSITION COULD THREATEN HIS GOVERNMENT AMID ALL THE COMMOTION MR HOSOKAWA'S PLANS TO WIN APPROVAL OF POLITICAL REFORM LEGISLATION BY YEAR'S END HIS TOP PRIORITY UPON TAKING OFFICE IN AUGUST ARE NOW ALL BUT DEAD THE BILLS PASSED THE LOWER HOUSE OF PARLIAMENT LAST MONTH BUT STILL MUST CLEAR THE UPPER HOUSE THE CURRENT SESSION OF PARLIAMENT IS SET TO END DEC 15 MR HOSOKAWA IS EXPECTED TO ASK FOR AN EXTENSION OF THE SESSION PERHAPS STRETCHING UNTIL THE END OF JANUARY MOST ANALYSTS AND POLITICIANS STILL SAY THAT DESPITE THE GROWING TUMULT MR HOSOKAWA AND HIS GOVERNMENT WILL ULTIMATELY WIN APPROVAL OF THE REFORM BILLS AND WILL SURVIVE WELL INTO NEXT YEAR MR HOSOKAWA STILL SEEMS TO RETAIN HIS TREMENDOUS POPULARITY ONE TELEVISION NEWS STATION SAID MR HOSOKAWA WON THE SUPPORT OF 683 OF THE RESPONDENTS IN A WEEKEND POLL THOUGH THAT WAS DOWN FROM 736 TWO WEEKS EARLIER BUT MORE ANALYSTS ARE RAISING THE POSSIBILITY THAT THE GOVERNMENT COULD BECOME UNGLUED OVER THE NEXT MONTH ONE PARLIAMENT MEMBER IN THE RULING COALITION SAID YESTERDAY THAT HE THINKS THERE'S ONLY A 60 CHANCE THAT THE REFORMS WILL PASS BY JANUARY AND THAT FAILURE WOULD LEAD TO DISSOLUTION OF THE GOVERNMENT A WEEK AGO MR HOSOKAWA AND VARIOUS CABINET MEMBERS INDICATED THEY WERE EXPLORING NEW MEASURES TO BOLSTER THE ECONOMY AND THE MARKET BUT IN PARLIAMENT YESTERDAY MR HOSOKAWA SAID HIS TOP PRIORITY IS WINNING PASSAGE OF THE SEPTEMBER PACKAGE HE SAID NEW MEASURES MAY BE ANNOUNCED LATER IN THE MONTH AS PART OF THE DRAFTING OF THE REGULAR BUDGET FOR THE FISCAL YEAR BEGINNING NEXT APRIL 1 AT A NEWS CONFERENCE MASAYOSHI TAKEMURA THE CHIEF CABINET SECRETARY ALSO TRIED TO DISTANCE THE GOVERNMENT FROM LAST WEEK'S HINTS SAYING THAT THE GOVERNMENT NEVER HAD PLANNED TO ANNOUNCE A NEW EMERGENCY ECONOMIC PACKAGE THIS WEEK A BIG REASON OFFICIALS SAY IS THE LDP'S OBSTRUCTION THE LDP SAYS A FINANCE MINISTRY OFFICIAL IS LOOKING FOR EVERY WAY TO DELAY MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE 9312070171 931207 TOP AIRLINES PLAN PROMOTION TO DROP US FARES BY 30 BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO DOMESTIC AIRFARES WILL FALL AS MUCH AS 30 ON FLIGHTS STARTING NEXT WEEK AS MAJOR AIRLINES TRY TO STIR UP YEAREND TRAVEL DEMAND THE THREE BIGGEST US AIRLINES MATCHED A PROMOTION LAUNCHED ON SUNDAY BY NO 4 NORTHWEST AIRLINES IT OFFERED DISCOUNTS OF AS MUCH AS 30 FOR DOMESTIC TRAVEL BETWEEN NEXT MONDAY AND JAN 5 NORTHWEST AIRLINES A UNIT OF CLOSELY HELD WINGS HOLDINGS INC SAID THE PROGRAM EXCLUDES THREE DAYS DEC 22 DEC 23 AND JAN 2 AND REQUIRES A SATURDAYNIGHT STAY TICKETS HAVE TO BE PURCHASED BY FRIDAY AMERICAN AIRLINES A UNIT OF AMR CORP SAID IT WOULD MATCH THE DOMESTIC FARE CUTS SET BY NORTHWEST AND EXPAND THE DISCOUNTS TO ITS ENTIRE DOMESTIC SYSTEM UNITED AIRLINES A UNIT OF UAL CORP AND DELTA AIR LINES SAID THEY WOULD MATCH THE CUTS AT LEAST IN COMPETING MARKETS AND MAY EXPAND THE DISCOUNTS BEYOND THEM THE HOLIDAY SALE COMES ON THE HEELS OF A SEPARATE PROMOTION LAUNCHED LAST WEEK BY TRANS WORLD AIRLINES THAT PROMOTION WHICH ALSO EXPIRES FRIDAY REDUCES TICKET PRICES AS MUCH AS 35 ON DOMESTIC TRAVEL BETWEEN JAN 6 AND MARCH 31 THE PROGRAM ALSO REQUIRING SATURDAYNIGHT STAYS WAS SIMILARLY MATCHED BY THE OTHER MAJOR AIRLINES AS WITH PAST PROMOTIONS THE SHORT PERIOD FOR THE TWO SALES AS WELL AS THEIR LEVEL OF RESTRICTIONS SHOULD KEEP THE DISCOUNTED FARES FROM HURTING AIRLINE PROFITS MUCH ANALYSTS SAID NONETHELESS ONE MAJOR AIRLINE TRIED TO SWIM AGAINST THE TIDE OVER THE WEEKEND CONTINENTAL AIRLINES ATTEMPTED BUT FAILED TO RAISE FARES BY 10 TO 20 ON ADVANCEPURCHASE TICKETS ACCORDING TO TRAVEL AGENTS THE MOVE APPEARED TO HAVE BEEN THWARTED BY DELTA AND USAIR GROUP INC WHICH DIDN'T GO ALONG WITH THE INCREASE AIRLINES HAVE BEEN USING THE WEEKENDS TO INTRODUCE FARE INCREASES BECAUSE NEW RULES FROM THE DEPARTMENT OF JUSTICE PROHIBIT CARRIERS FROM SIGNALING FUTURE PRICE INCREASES IN THE COMPUTERRESERVATION SYSTEM BY PUTTING IN FARE INCREASES OVER THE WEEKEND WHEN FEW TRAVELERS BUY TICKETS CARRIERS WON'T LOSE CUSTOMERS IF RIVALS DON'T MATCH THE MOVE 9312070170 931207 INTERNATIONAL MARKUS WOLF CHIEF OF EAST GERMANY'S SPIES IS CONVICTED BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL DUESSELDORF GERMANY MARKUS WOLF EAST GERMANY'S LEGENDARY SPYMASTER WAS CONVICTED OF TREASON AND BRIBERY AND SENTENCED TO SIX YEARS IN PRISON WIDELY CONSIDERED THE MOST SUCCESSFUL COMMUNIST INTELLIGENCE CHIEF MR WOLF 70 YEARS OLD RAN 500 AGENTS IN WEST GERMANY AS WELL AS A NETWORK OF SPIES WHO PENETRATED OTHER WESTERN GOVERNMENTS AND THE NORTH ATLANTIC TREATY ORGANIZATION THE DISCOVERY IN 1974 OF HIS MOST FAMOUS MOLE GUENTER GUILLAUME A TOP OFFICIAL IN THE WEST GERMAN GOVERNMENT FORCED THE RESIGNATION OF CHANCELLOR WILLY BRANDT THE DUESSELDORF COURT ALLOWED MR WOLF TEMPORARILY TO REMAIN FREE ON BAIL HIS LAWYERS DECLARED AFTER SENTENCING THAT THEY WOULD APPEAL MR WOLF WHOSE CAREER AT THE TOP OF EAST GERMAN INTELLIGENCE SPANNED 33 YEARS IS ONE OF A HANDFUL OF TOP EAST GERMAN OFFICIALS IN THE THREE YEARS SINCE GERMAN UNIFICATION TO BE CONVICTED FOR DEEDS IN OFFICE A NUMBER OF THOSE WHO HAVE BEEN CHARGED WERE RELEASED BECAUSE OF OLD AGE AND POOR HEALTH AMONG THEM WAS FORMER PARTY CHIEF ERICH HONECKER WHO YESTERDAY WAS TAKEN UNCONSCIOUS TO A HOSPITAL IN CHILE WHERE HE HAS LIVED WITH HIS WIFE SINCE BEING FREED IN JANUARY HE HAD BEEN DIAGNOSED AS HAVING ADVANCED LIVER CANCER CONTROVERSY OVER THE CHARGES AGAINST MR WOLF LIKELY WILL CONTINUE AT LEAST THROUGH 1994 WHEN GERMANY'S HIGHEST COURT IS TO DECIDE WHETHER FORMER EAST GERMAN AGENTS CAN BE TRIED FOR ESPIONAGE MR WOLF WHO CRITICIZED THE PROCEEDINGS AS POLITICAL SCORESETTLING HAS MAINTAINED THAT IT WAS ABSURD TO PROSECUTE HIM FOR ACTIVITIES NO DIFFERENT FROM THOSE OF HIS WEST GERMAN COUNTERPARTS AT THE OUTSET OF HIS SEVENMONTH TRIAL THE FORMER LIEUTENANT GENERAL IN THE MINISTRY OF STATE SECURITY ASKED POINTEDLY WHICH COUNTRY AM I SUPPOSED TO HAVE BETRAYED SEVERAL LEADING MEMBERS OF GERMANY'S INTELLIGENCE COMMUNITY HAVE SIDED WITH MR WOLF NOTING THAT HIS DEEDS EARNED HIM CRIMINAL PROSECUTION WHILE A FORMER WEST GERMAN SPYMASTER KLAUS KINKEL HAS BECOME GERMANY'S FOREIGN MINISTER 9312070169 931207 WHO'S NEWS CONRAIL INC CONRAIL INC PHILADELPHIA GERALD T GATES 39 WAS NAMED VICE PRESIDENT MECHANICAL SUCCEEDING JOHN R NUSSRALLAH 46 WHO BECOMES MANAGING DIRECTOR INSOURCING OF THIS RAILFREIGHT TRANSPORTATION COMPANY MR GATES WAS MOST RECENTLY ASSISTANT VICE PRESIDENT OPERATIONS PLANNING AND ADMINISTRATION 9312070168 931207 AMERICAN PRESIDENT TO BUY SHIPS OAKLAND CALIF AMERICAN PRESIDENT COS SAID IT AGREED TO BUY THREE NEW DIESELPOWERED SHIPS FROM SOUTH KOREA'S DAEWOO SHIPBUILDING AND HEAVY MACHINERY LTD FOR ABOUT 190 MILLION THE TRANSPORTATION CONCERN SAID IT WOULD FINANCE THE PURCHASES WITH FUNDS FROM A RECENT DEBT ISSUE AND INTERNALLY GENERATED CASH FLOW IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AMERICAN PRESIDENT WAS QUOTED AT 55 A SHARE UP 375 CENTS 9312070167 931207 WHO'S NEWS ARVIN INDUSTRIES INC ARVIN INDUSTRIES INC COLUMBUS IND WILLIAM D GEORGE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SC JOHNSON & SON INC AND IVAN W GORR CHAIRMAN AND CHIEF EXECUTIVE OF COOPER TIRE & RUBBER CO WERE ELECTED DIRECTORS OF THIS SUPPLIER OF AUTOMOTIVE PARTS AND RELATED PRODUCTS AND SERVICES FILLING VACANCIES ON THE BOARD 9312070166 931207 WHO'S NEWS CENCALL COMMUNICATIONS CORP CENCALL COMMUNICATIONS CORP DENVER BOB MCKENZIE 49 YEARS OLD WILL STEP DOWN AS CHIEF OPERATING OFFICER OF THIS WIRELESS COMMUNICATIONS CONCERN FEB 1 FOR HEALTH REASONS THE COMPANY SAID A CENCALL SPOKESMAN SAID THE COMPANY DOESN'T PLAN TO NAME A NEW CHIEF OPERATING OFFICER 9312070165 931207 FIFTH THIRD ACQUISITION CINCINNATI FIFTH THIRD BANCORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE NATIONAL BANCORP OF KENTUCKY LEXINGTON KY FOR 13 MILLION FIFTH THIRD EXPECTS THE TRANSACTION WILL CLOSE IN THE SECOND QUARTER OF 1994 NATIONAL BANCORP WHICH HAS 102 MILLION IN ASSETS HAS TWO UNITS FIRST NATIONAL BANK OF FALMOUTH AND NATIONAL BANK OF CYNTHIANA FIFTH THIRD HAS 114 BILLION IN ASSETS 9312070164 931207 WHO'S NEWS ARON TO RELINQUISH DUTIES NEW YORK CARL R ARON CHAIRMAN OF A WIRELESS DATA COMMUNICATIONS JOINT VENTURE BETWEEN RAM BROADCASTING CORP AND BELLSOUTH CORP SAID HE WILL RELINQUISH HIS ROLE AS CHIEF EXECUTIVE OFFICER OF THE VENTURE THE VENTURE RAM MOBILE DATA PROVIDES WIRELESS DATA AND PAGING SERVICES ON HANDHELD DEVICES IN MORE THEN 6300 US CITIES MR ARON 50 YEARS OLD SAID HE WILL CONCENTRATE ON DEFINING OVERALL STRATEGY FOR THE VENTURE AND WILL TURN OVER OPERATING RESPONSIBILITY TO OTHERS RAM BROADCASTING SAID IT HAS BEGUN A SEARCH AND WILL NAME A NEW CHIEF EXECUTIVE OFFICER SOON SEPARATELY GEORGE PAPPAS 54 WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT OPERATIONS AT THE JOINT VENTURE HE HAD BEEN PRESIDENT OF RAM/BSE PAGINGHAWAII A RAM MOBILE DATA DIVISION 9312070163 931207 INTERNATIONAL FOR VENEZUELA'S PRESIDENTELECT PROMISES COLLIDE WITH PROBLEMS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL POPULIST RAFAEL CALDERA WON VENEZUELA'S PRESIDENTIAL ELECTION SUNDAY BY TAPPING DEEP DISCONTENT WITH THE ECONOMIC AUSTERITY PROGRAMS OF HIS PREDECESSORS BUT ANALYSTS SAY THE 77YEAROLD MR CALDERA WHO WAS OUTPACING HIS THREE MAIN RIVALS WITH ABOUT 31 OF THE VOTE MAY SOON DISCOVER THAT ECONOMIC POPULISM IS MORE USEFUL AS AN ELECTORAL PLANK THAN AS A PRESCRIPTION FOR RUNNING A DEEPLY TROUBLED COUNTRY SUCH AS VENEZUELA THE CARIBBEAN NATION IS PLAGUED BY AN ANEMIC ECONOMY HIGH INFLATION AN ENORMOUS PUBLIC DEFICIT AND A DAMAGING DEPENDENCE ON ITS OIL EXPORTS THERE IS A NEED FOR SOME VERY TRAUMATIC CHANGES AND NO ROOM AT ALL FOR OLDSTYLE POLITICS SAYS OSCAR GARCIA MENDOZA PRESIDENT OF BANCO VENEZOLANO DE CREDITO IT WAS PARTLY NOSTALGIA FOR HAPPIER ECONOMIC TIMES THAT DREW SUPPORT FOR MR CALDERA WHO WAS VENEZUELA'S PRESIDENT FROM 1969 TO 1974 THE ELECTIONS WERE CALLED AFTER PRESIDENT CARLOS ANDRES PEREZ WHO HAD INTRODUCED A SERIES OF UNPOPULAR MARKETORIENTED REFORMS WAS FORCED OUT OF OFFICE LAST MAY IN A CORRUPTION SCANDAL WITH PRESIDENTIAL ELECTIONS SET FOR A DOZEN LATIN AMERICAN COUNTRIES OVER THE NEXT 18 MONTHS MR CALDERA'S WIN SHOULD HEARTEN THE REGION'S LEFTISTS WHO HAVE BEEN SWAMPED BY LATIN AMERICA'S RECENT EMBRACE OF THE FREE MARKET IN BRAZIL AND PANAMA IN PARTICULAR LEFTIST CANDIDATES ARE WELLPOSITIONED TO EXPLOIT FRUSTRATION WITH MARKETORIENTED PROGRAMS EVEN THOUGH THESE PROGRAMS HAVE BEEN ONLY HALFHEARTEDLY APPLIED IN SOME CASES AT A NEWS CONFERENCE YESTERDAY MR CALDERA PLEDGED TO FOLLOW THROUGH ON A CAMPAIGN PROMISE TO DO AWAY WITH AN UNPOPULAR VALUEADDED TAX MR CALDERA'S CAMPAIGN WAS MARKED BY SHARP CONTRADICTIONS BETWEEN THE SIGNALS HE SENT TO VOTERS AND THOSE HE SENT TO INVESTORS ON THE CAMPAIGN TRAIL HE BLASTED PRESIDENT PEREZ'S FREEMARKET PLAN AS AN ILLFATED ECONOMIC PACKAGE HE INCLUDED A PARTY MADE UP OF FORMER LEFTIST GUERRILLAS IN HIS POLITICAL COALITION AND DISCUSSED FORMING A CARTEL OF LATIN DEBTOR NATIONS TO CONFRONT THEIR CREDITORS BUT IN CONTACTS WITH THE INVESTMENT COMMUNITY MR CALDERA'S TEAM PIPED A MORE PROBUSINESS TUNE OUR GREATEST PRIORITY WILL BE OPENING UP SPACES FOR PRIVATE INVESTMENT MR CALDERA'S ECONOMIC ADVISER ASDRUBAL BAPTISTA TOLD THE AMERICAN CHAMBER OF COMMERCE A US BUSINESS GROUP SOME SAY THAT WHATEVER HIS PHILOSOPHICAL LEANINGS MR CALDERA WILL BE RESTRAINED BY THE GRIM REALITIES HE WILL INHERIT UPON TAKING OFFICE IN FEBRUARY POLITICALLY HE WILL HAVE TO ACCOMMODATE A SPLINTERED CONGRESS NOT TO MENTION A WARY MILITARY THAT ATTEMPTED TWO COUPS IN 1992 ON THE ECONOMIC FRONT HE MUST CONTEND WITH THE DECLINE IN OIL PRICES TO THEIR LOWEST LEVELS IN FIVE YEARS OIL ACCOUNTS FOR 80 OF THE COUNTRY'S FOREIGNEXCHANGE EARNINGS WE HAVE TO LEARN THAT NOTHING IN THIS WORLD COMES FOR FREE SAYS JUAN CARLOS GOMEZ CORPORATE PLANNING COORDINATOR FOR PETROLEOS DE VENEZUELA THE STATEOWNED OIL COMPANY THE COMPANY HAS BEEN PRESSING FOR A TAX ON GASOLINE WHICH AT AROUND 20 CENTS A GALLON IS CHEAPER IN VENEZUELA THAN ALMOST ANYWHERE ELSE IN THE WORLD REVENUE WOULD GO TOWARD REDUCING THE COUNTRY'S BALLOONING DEFICIT BUT DURING THE CAMPAIGN MR CALDERA'S TEAM SEEMED UNWILLING TO BACK SUCH A MOVE IT IS NOT A SUBSIDY TO CHARGE GASOLINE BELOW WHAT IS CALLED THE INTERNATIONAL PRICE MR BAPTISTA TOLD THE AMERICAN CHAMBER OF COMMERCE SOME ANALYSTS SAY MR CALDERA'S RELUCTANCE TO SPEAK OF SUCH PAINFUL STEPS WAS SIMPLY A MATTER OF SHREWD POLITICS THEY NOTE IT MIGHT HAVE BEEN POLITICAL SUICIDE TO HAVE ADVOCATED MORE AUSTERITY IN A COUNTRY WHERE REAL WAGES HAVE FALLEN NEARLY 50 OVER THE PAST DECADE BUT OTHERS SAY THAT BY NOT HAVING SPOKEN MORE REALISTICALLY ABOUT THE CHALLENGES FACING VENEZUELA MR CALDERA MAY ONLY BE INCREASING THE TRAUMA WHEN THE DAY OF RECKONING COMES 9312070162 931207 WHO'S NEWS FLAGSTAR COS FLAGSTAR COS SPARTANBURG SC GAYLON SMITH FORMERLY A VICE PRESIDENT OF DOMESTIC AND INTERNATIONAL FRANCHISING FOR ARBY'S INC WAS NAMED VICE PRESIDENT OF FRANCHISE DEVELOPMENT FOR DENNY'S A UNIT OF THIS RESTAURANT AND FOOD SERVICES COMPANY MR SMITH 49 YEARS OLD SUCCEEDS SAMUEL WILENSKY WHO HAS TAKEN A POSITION IN FIELD SUPPORT WITH DENNY'S 9312070161 931207 WHO'S NEWS SEAGULL ENERGY CORP SEAGULL ENERGY CORP HOUSTON JAMES A WATT WAS NAMED VICE PRESIDENT OF EXPLORATION FOR THIS NATURALGAS COMPANY MR WATT 43 YEARS OLD WAS A VICE PRESIDENT OF NERCO OIL & GAS INC A SUBSIDIARY OF RTZ CORP THAT WAS ACQUIRED EARLIER THIS YEAR BY LOUISIANA LAND & EXPLORATION CO MR WATT SUCCEEDS JAMES G BLANKENSHIP 65 WHO WILL CONTINUE AS A SENIOR EXPLORATION CONSULTANT 9312070160 931207 MOHAWK AGREES ON ACQUISITION OF ALADDIN MILLS STOCK TRANSACTION IS VALUED AT SOME 4306 MILLION MOHAWK'S SHARES SURGE BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA MOHAWK INDUSTRIES INC CONTINUING ITS AGGRESSIVE EXPANSION AGREED TO ACQUIRE ALADDIN MILLS INC IN A STOCK TRANSACTION VALUED AT APPROXIMATELY 4306 MILLION THE MOVE WOULD SOLIDIFY MOHAWK'S NO 2 STANDING IN THE RAPIDLY CONSOLIDATING CARPET INDUSTRY PUSHING ITS ANNUAL REVENUE WELL ABOVE 1 BILLION FOR THE FIRST TIME ALADDIN CLOSELY HELD AND BASED IN DALTON GA ALSO WOULD GREATLY BROADEN MOHAWK'S RESIDENTIAL CARPET LINE AND GIVE THE COMPANY ITS FIRST FIBERMAKING CAPABILITY UNDER TERMS OF THE AGREEMENT MOHAWK WILL ISSUE APPROXIMATELY 136 MILLION COMMON SHARES IN A POOLING OF INTERESTS THAT GIVES THE LORBERBAUM FAMILY WHICH CONTROLS ALADDIN 42 OF MOHAWK STOCK AND TWO SEATS ON AN EXPANDED BOARD BUT THE LORBERBAUMS PLAN TO SELL PART OF THAT STAKE TO THE PUBLIC SOMETIME NEXT YEAR ACCORDING TO AN ALADDIN SPOKESMAN ALAN LORBERBAUM ALADDIN'S PRESIDENT COULDN'T BE REACHED FOR COMMENT THE MERGER IS SUBJECT TO SEVERAL CONDITIONS INCLUDING APPROVAL BY FEDERAL REGULATORS AND SHAREHOLDERS ALADDIN MAY TERMINATE THE AGREEMENT IF MOHAWK SHARES TRADE AT AN AVERAGE PRICE OF BELOW 27 DURING THE FIVE DAYS ENDING DEC 10 MOHAWK MEANWHILE CAN EXIT FROM THE DEAL IF THE AVERAGE SHARE PRICE CLIMBS ABOVE 35 DURING THE SAME PERIOD THE TRANSACTION IS THE LATEST AND LARGEST IN A RECENT STRING OF ACQUISITIONS AT MOHAWK WHICH REPORTED JUST 279 MILLION IN ANNUAL REVENUE IN APRIL 1992 WHEN IT WENT PUBLIC WITH ALADDIN ADDED TO THE MIX MOHAWK'S ANNUAL REVENUE WILL HIT APPROXIMATELY 14 BILLION SAID FRANK O'NEILL EDITOR OF FLOOR FOCUS AN INDUSTRY PUBLICATION EARLIER THIS YEAR MOHAWK PAID 155 MILLION FOR FIELDCREST CANNON INC'S CARPET AND RUG OPERATIONS WHICH INCLUDE THE KARASTAN AND BIGELOW BRANDS BEFORE THAT THE COMPANY BOUGHT AMERICAN RUG CRAFTSMEN INC FOR 20 MILLION AND HORIZON INDUSTRIES INC FOR 865 MILLION EVEN AFTER THE MERGER WITH ALADDIN MOHAWK WILL REMAIN FAR BEHIND INDUSTRY JUGGERNAUT SHAW INDUSTRIES INC AND ITS 232 BILLION IN ANNUAL REVENUE BUT MOHAWK'S BROAD COMMERCIAL AND RESIDENTIAL PRODUCT LINES WILL KEEP IT COMPETITIVE WITH SHAW IN MOST MARKETPLACES THEY'RE CLEARLY GOING TO BE ONE OF THE MEGAPLAYERS IN THE INDUSTRY MS LOEPKER SAID UNLIKE MOST OTHER LARGE CARPET MAKERS ALADDIN HAS GROWN INTERNALLY RATHER THAN THROUGH ACQUISITIONS BY INVESTING HEAVILY IN EQUIPMENT75 MILLION OVER FIVE YEARSAND PLACING A PREMIUM ON QUICK DELIVERY OF PRODUCTS ALADDIN HAS INCREASED ITS SALES 20 ANNUALLY OVER THE PAST FIVE YEARS ACCORDING TO DAVID L KOLB MOHAWK CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALADDIN GENERATED NET INCOME OF 19 MILLION ON REVENUE OF 414 MILLION FOR THE FISCAL YEAR ENDED JUNE 27 1993 ACCORDING TO AN ALADDIN SPOKESMAN ALADDIN HAS CONCENTRATED IN LESSEXPENSIVE RESIDENTIAL CARPETING AN AREA WHERE MOHAWK HASN'T BEEN A MAJOR FACTOR IN ADDITION ALADDIN BRINGS TO MOHAWK A LARGE LINE OF BATH RUGS AND A FASTGROWING FIBERMAKING OPERATION ALADDIN IS ONE OF A HANDFUL OF CARPET MAKERS THAT PRODUCES SOME OF ITS OWN POLYPROPYLENE THE FIBER THAT MANY CARPETS ARE MADE OF SEPARATELY MOHAWK SAID IT MAY BE SUBJECT TO A TAX LIABILITY OF UP TO 245 MILLION THE COMPANY SAID IT LEARNED THAT THE INTERNAL REVENUE SERVICE IS CHALLENGING CERTAIN DEDUCTIONS TAKEN BY A COMPANY THAT IS THE PARENT OF A CONSOLIDATED TAX GROUP IN WHICH MOHAWK WAS PREVIOUSLY A MEMBER THE MATTER INVOLVES INTEREST DEDUCTIONS ON INTERCOMPANY INDEBTEDNESS BY THE FORMER PARENT MOHAWK SAID IT IS INDEMNIFIED AGAINST THE LIABILITY AND DOESN'T EXPECT TO BE MATERIALLY AFFECTED THE COMPANY ADDED THAT IT WILL VIGOROUSLY CONTEST THE CASE 9312070159 931207 WHO'S NEWS CHARTERED FEDERAL SAVINGS BANK CHARTERED FEDERAL SAVINGS BANK BRISTOL VA INVESTMENT ADVISER ROBERT E TORRAY 56 YEARS OLD WAS ELECTED A DIRECTOR OF THIS SAVINGS BANK INCREASING THE BOARD TO 10 NEWLY NAMED EXECUTIVE VICE PRESIDENTS ARE RONALD E BEW 48 RETAIL BANKING A FORMER SENIOR VICE PRESIDENT FOR CRESTAR BANK AND RICHARD W BUCHANAN 38 FINANCE AND CREDIT ADMINISTRATION FORMERLY THE BANK'S SENIOR VICE PRESIDENT LENDING 9312070158 931207 WHO'S NEWS AMCAST INDUSTRIAL CORP AMCAST INDUSTRIAL CORP DAYTON OHIO JOHN H SHUEY 47 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MANUFACTURER OF METAL PRODUCTS INCLUDING VALVES AND PLUMBING PARTS MR SHUEY FORMERLY WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE ALSO HEADED THE COMPANY'S FLOWCONTROL BUSINESSES HE SUCCEEDS LEO W LADEHOFF 61 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9312070157 931207 WHO'S NEWS PROTEON INC PROTEON INC WESTBOROUGH MASS BRUCE J BERGMAN 52 YEARS OLD FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF XYLOGICS INC WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A MEMBER OF THE BOARD PROTEON'S ACTING PRESIDENT ELLIOT HONAN 56 WILL CONTINUE AS VICE PRESIDENT OF FINANCE AND ADMINISTRATION CHIEF FINANCIAL OFFICER AND A BOARD MEMBER PROTEON IS A COMPUTER NETWORKING CONCERN 9312070156 931207 WHO'S NEWS AIRSENSORS INC AIRSENSORS INC CERRITOS CALIF NORMAN L BRYAN WAS ELECTED A DIRECTOR SUCCEEDING AT BRIX 48 WHO DIDN'T STAND FOR REELECTION MR BRYAN 52 IS VICE PRESIDENT OF MARKETING FOR PACIFIC GAS & ELECTRIC CO AIRSENSORS MAKES GASEOUS FUEL EQUIPMENT THAT ALLOWS ENGINES TO OPERATE ON CLEAN FUELS AND PROVIDES CONVERSION EQUIPMENT FOR VARIOUS MOTOR VEHICLES AND ENGINES 9312070155 931207 KAUFMAN & BROAD BUYBACK LOS ANGELES HOMEBUILDER KAUFMAN & BROAD CORP SAID IT WILL BUY BACK 286 MILLION OF ITS SPECIAL COMMON STOCK WARRANTS FROM SUNAMERICA INC'S SUN LIFE UNIT KAUFMAN & BROAD WILL PURCHASE 2377000 WARRANTS AT 19 A SHARE LESS A 696ASHARE EXERCISE PRICE THE COMPANY SAID 9312070154 931207 LEISURE & ARTS PHOTOGRAPHY CHRISTMAS BOOKS A HOLIDAY SAMPLER BY AMY GAMERMAN BACK IN THE '50S KEN CASE WAS THE ATOMIC COWBOY DRIVING HERDS OF HORSES AND CATTLE OVER GROUND ZERO OF THE GOVERNMENT'S NUCLEAR TEST SITE HIS BOSS WAS THE ATOMIC ENERGY COMMISSION WHICH WANTED TO TEST THE EFFECTS OF RADIATION ON ANIMALS IN 1984 CASE COWBOY HAT STILL AT A JAUNTY ANGLE POSED FOR HIS PICTURE WITH A PHOTOGRAPH OF AN ATOMIC MUSHROOM CLOUD CLASPED IN HIS HANDS HE HAD LOST HIS SPLEEN AND SEVERAL FEET OF HIS INTESTINES TO CANCER WITHIN TWO YEARS HE AND HIS WIFE WERE DEAD CASE'S IMAGE AND HIS STORY ARE CAPTURED IN CAROLE GALLAGHER'S EXTRAORDINARY BOOK AMERICAN GROUND ZERO MIT PRESS 427 PAGES 50 SHE SPENT SEVEN YEARS INTERVIEWING AND PHOTOGRAPHING HUNDREDS OF PEOPLE IN SIX DOWNWIND STATES THE LOWUSE SEGMENT OF THE POPULATION CHILLINGLY DESCRIBED IN ONE SECRET GOVERNMENT MEMO TESTSITE WORKERS SOLDIERS AND UPRIGHT MORMON FAMILIES WHO RAN OUTSIDE TO ADMIRE THE RADIOACTIVE PINK CLOUDS FLOATING OVER THEIR HOUSES SPEAK OF YEARS OF SICKNESS OF SPOUSES LOST TO CANCER OF AFFLICTED CHILDREN BUT MS GALLAGHER FORGOES SENSATIONAL IMAGERY FOR PORTRAITS THAT ARE AS STOIC AS HER SUBJECTS EDWARD SHERIFF CURTIS WAS ALSO A PHOTOGRAPHER WITH A MISSION IN 1898 HE EMBARKED ON A 30YEAR PROJECT TO PHOTOGRAPH AND DOCUMENT MORE THAN 80 NORTH AMERICAN INDIAN NATIONS LUGGING HIS CAMERA AND GLASS PLATES ON EXPEDITIONS TO THE NORTHWEST THE SOUTHWEST AND ALASKA WORD PASSES FROM TRIBE TO TRIBE CURTIS WROTE TRIBES THAT I WON'T REACH FOR FOUR OR FIVE YEARS YET HAVE SENT WORD ASKING ME TO COME AND SEE THEM CURTIS'S 20VOLUME WORK LANGUISHED FOR YEARS IN RAREBOOK ROOMS BUT NOW SOME OF HIS FINEST IMAGES HAVE BEEN CULLED BY CHRISTOPHER CARDOZO FOR NATIVE NATIONS BULFINCH PRESS 160 PAGES 60 A SEPIATONED GLIMPSE INTO A VANISHED WORLD OF WHALERS BASKET MAKERS DUCK HUNTERS AND POTTERS CURTIS'S ORIGINAL CAPTIONS ARE ARTIFACTS IN THEMSELVES HER EYES ARE THOSE OF A FAWN OF THE FOREST QUESTIONING THE STRANGE THINGS OF CIVILIZATION UPON WHICH IT GAZES FOR THE FIRST TIME HE WROTE OF A MOJAVE GIRL WHO STARES INTO THE CAMERA HER FACE MARKED WITH SLASHES OF BLACK PAINT LIKE TEAR TRACKS ANOTHER LOST WORLD IS CAPTURED IN VANDERZEE PHOTOGRAPHER 18861983 ABRAMS 192 PAGES 3995 A RETROSPECTIVE OF THE WORK OF THE BLACK PHOTOGRAPHER AND DOCUMENTOR OF THE HARLEM RENAISSANCE EVERYONE VISITED JAMES VANDERZEE'S HARLEM STUDIO BLUES SINGERS PREACHERS SOLDIERS BACK FROM WORLD WAR I ADAM CLAYTON POWELL SR AND JR VANDERZEE IN TURN TOOK HIS CAMERA INTO BEAUTY SALONS TO FINE PARLORS ON STRIVER'S ROW TO FUNERAL HOMES AND CHURCHES CREATING A COMPOSITE PORTRAIT OF A PROSPEROUS VIBRANT AND THOROUGHLY SELFCONTAINED COMMUNITY CHARLES M CONLON'S IMAGES HELP BURNISH THE GLOW OF BASEBALL'S GOLDEN AGE ABRAMS 198 PAGES 2995 NEAL MCCABE AND HIS SISTER CONSTANCE MCCABE HAVE DRAWN THEIR BOOK FROM THE 8000 GLASSPLATE NEGATIVES THAT CONLON SNAPPED FOR VARIOUS SPORTS PUBLICATIONS BETWEEN 1904 AND 1942 NOW OWNED BY THE SPORTING NEWS THE PHOTOGRAPHS OF GEORGE PLATT LYNES COME FROM ANOTHER ARCHIVE THE KINSEY INSTITUTE FOR RESEARCH IN SEX GENDER AND REPRODUCTION LYNES A FASHION PHOTOGRAPHER ACTIVE IN THE '30S AND '40S KEPT HIS PHOTOGRAPHS OF MALE NUDES UNDER WRAPS THEIR EXPLICIT EROTICISM COULD HAVE LANDED HIM IN JAIL FOR YEARS ONLY SCHOLARS SCIENTISTS AND OTHER PROFESSIONALS IN THE WORDS OF KINSEY DIRECTOR JUNE MACHOVER REINISCH COULD INSPECT THEM NOW WE CAN IN GEORGE PLATT LYNES BULFINCH PRESS 158 PAGES 60 ROBERT MAPPLETHORPE CLEARLY OWED A BIG DEBT TO LYNES WHOSE LANGUOROUS PORTRAITS BALANCHINE DANCERS PERFORMING NUDE A GUY SHOWING OFF HIS TATTOOS ARE AS IMMACULATELY LIT AND ELEGANTLY FRAMED AS XRATED FASHION SHOTS RICHARD AVEDON HAS ASSEMBLED HIS FASHION PHOTOS AND OTHER WORK FROM A LONG CAREER IN AN AUTOBIOGRAPHY RANDOM HOUSE 284 PLATES 100 CURIOUSLY THE PICTURES ENTOMBED IN THIS SLABLIKE BOOK LOOKED MORE POWERFUL IN THE MAGAZINES THIS IS PARTLY THE FAULT OF THE BOOK'S WEIRD JUXTAPOSITIONS A FASHION MODEL OPPOSITE A NAPALM VICTIM JANIS JOPLIN NEXT TO A 1949 PHOTO OF A LITTLE GIRL IN CENTRAL PARK THESE PAIRINGS ARE MEANT TO SERVE AS COMMENTS ON THE ILLUSIONS OF YOUTH AND POWER IN FACT THEY'RE FORCED OBVIOUS AND OFTEN TASTELESS AN AUTOBIOGRAPHY IS A PICTORIAL SALAD WHOSE VARIOUS INGREDIENTS CELEBRITIES BLUECOLLAR WORKERS CORPSES IN THEIR CATACOMBS THE PHOTOGRAPHER'S DYING FATHERMAKE FOR VISUAL AND THEMATIC INDIGESTION A FAR MORE WINNING RETROSPECTIVE IS WALKER EVANS THE HUNGRY EYE ABRAMS 366 PAGES 60 WHICH GIVES A WIDEANGLE VIEW OF THE CAREER OF A GREAT AMERICAN PHOTOGRAPHER WHO UNDERSTOOD THE POWER PHOTOGRAPHS COULD ACHIEVE IN BOOK FORM EVANS IS BEST KNOWN FOR THE IMAGES OF SOUTHERN SHARECROPPERS HE PUBLISHED IN LET US NOW PRAISE FAMOUS MEN ALONGSIDE JAMES AGEE'S TEXT THOSE PICTURES ARE INCLUDED HERE BUT THE REVELATION IS HIS STUDIES OF URBAN LIFE HIS LYRICAL IMAGES OF THE BROOKLYN BRIDGE AND HIS SHOTS OF PEOPLE CAUGHT UNWITTINGLY ON THE NEW YORK SUBWAY SNAPPED WITH A HIDDEN CAMERA THAT HE OPERATED USING A FLEXIBLE CABLE RUNNING DOWN HIS SLEEVE LEE FRIEDLANDER COLLECTS HIS OWN URBAN ICONS IN LETTERS FROM THE PEOPLE DISTRIBUTED ART PUBLISHERS 88 PAGES 95 MR FRIEDLANDER KNOWN FOR HIS PAINTERLY PHOTOS OF JAZZ MUSICIANS FEMALE NUDES AND SMALLTOWN MONUMENTS HERE TAKES ON THE SEEMINGLY IMPOSSIBLE TASK OF PHOTOGRAPHING LANGUAGE FROM ASTENCILED ON A GLASS PANE SCRAWLED ON A STUCCO WALLTO ZAN UNLIT ELECTRIC SIGN HANGING OVER AN EMPTY CITY STREET SEEMINGLY CAUGHT NAPPING HAVING ESTABLISHED HIS ALPHABET MR FRIEDLANDER TURNS HIS LENS ON THE ERUPTION OF WORDS THAT SURROUNDS USFROM OBSCENITIES SPRAYED AND SCRATCHED ON WALLS AND TREES TO THIS BIT OF POESY SCRAWLED ON A RIVERSIDE ESPLANADE EVERYDAY I CALLS A PHONE TO HER EVERY NIGHT I DREAMS FOR HER 9312070153 931207 WHO'S NEWS INTERNATIONAL JENSEN INC INTERNATIONAL JENSEN INC LINCOLNSHIRE ILL MARC T TANENBERG 42 YEARS OLD FORMERLY VICE PRESIDENT STRATEGIC PLANNING AND BUSINESS DEVELOPMENT OF AAR CORP WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF SPEAKERS AND OTHER AUDIO PRODUCTS FOR AUTOMOBILE AND HOME LISTENING HE SUCCEEDS DONALD J COWIE 47 WHO WAS PROMOTED TO THE NEWLY CREATED POST OF GROUP VICE PRESIDENT ORIGINAL EQUIPMENT MANUFACTURING IN ADDITION THE COMPANY NAMED DAVID M MARINELLO 49 FORMERLY VICE PRESIDENT BRANDED PRODUCTS MARKETING AND SALES TO THE NEW POST OF SENIOR VICE PRESIDENT MARKETING AND SALES FOR BRANDED PRODUCTS 9312070152 931207 LYONDELL PETROCHEMICAL CREDIT HOUSTON LYONDELL PETROCHEMICAL CO SAID IT OBTAINED A FIVEYEAR 400 MILLION REVOLVING CREDIT FACILITY FROM A GROUP OF 18 BANKS LED BY THE TEXAS COMMERCE BANK SUBSIDIARY OF CHEMICAL BANKING CORP AND CONTINENTAL BANK CORP THE LINE OF CREDIT IS AN INCREASE FROM LYONDELL'S CURRENT 300 MILLION FACILITY WHICH WAS SCHEDULED TO EXPIRE NEXT JULY THE NEW CREDIT FACILITY RUNS THOUGH DECEMBER 1998 THE COMPANY SAID 9312070151 931207 WORKPLACE COMPANIES USE TV TO REACH THEIR WORKERS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH BIG BROTHER MAY NOT BE WATCHING YOU BUT AT A GROWING NUMBER OF COMPANIES HE'S TALKING TO YOU WHEN FORD MOTOR CO MADE A SURPRISE ANNOUNCEMENT IN OCTOBER THAT ALEXANDER J TROTMAN WOULD BE ITS NEXT CHAIRMAN THOUSANDS OF FORD EMPLOYEES HEARD THE NEWS BEFORE THE FIRST REPORTER REACHED THE TELEPHONE THE WORKERS SAW MR TROTMAN'S PRESS CONFERENCE LIVE ON SOME 2300 TV SETS IN FORD FACTORIES AND OFFICES ACROSS THE US PART OF A SOPHISTICATED INTERNAL TV NETWORK OPERATED BY FORD MORE THAN 90 MAJOR COMPANIES IN NORTH AMERICA HAVE THEIR OWN TV SATELLITE OR CABLE NETWORKS ACCORDING TO A SURVEY FROM KJH COMMUNICATIONS AN ATLANTA CONSULTING FIRM THE COMPANIES USE TV FOR RUMOR CONTROL TO BOOST WORKERS' INVOLVEMENT TO SMOOTH OPERATIONS IN EMERGENCIES AND TO CUT MILLIONS OF DOLLARS IN TRAVEL COSTS FOR TRAINING AND NEW PRODUCT BRIEFINGS THERE ARE DANGERS TO CORPORATE TELEVISION NETWORKS SAYS JAY CONGER AN EXPERT IN ORGANIZATIONAL BEHAVIOR AT MCGILL UNIVERSITY IN MONTREAL FOR ONE ANY COMPANY CAN ALSO USE TELEVISION TO PROMOTE THE CORPORATE CULTURE AND MAKE SURE EMPLOYEES MARCH IN LOCK STEP EXECUTIVES ALSO HAVE TO BE AWARE THAT THEIR TELEVISION APPEARANCES CAN HAVE UNFORESEEN EFFECTS A CLASSIC EXAMPLE OF THAT OCCURRED IN 1983 WHEN FRANK BORMAN THEN CHAIRMAN OF EASTERN AIRLINES WARNED HIS EMPLOYEES ON INTERNAL CABLE TELEVISION THAT THE AIRLINE MIGHT GO BANKRUPT UNLESS WORKERS MADE CONCESSIONS WHEN WORD OF THE SPEECH LEAKED OUT CUSTOMERS REDEEMED 2 MILLION IN EASTERN TICKETS WITHIN TWO DAYS EVEN SO MR CONGER BELIEVES PRIVATE TV NETWORKS DO FAR MORE GOOD THAN HARM IF THEY KNOW AS MUCH AS POSSIBLE WHAT'S HAPPENING IT ACTUALLY RAISES THEIR COMFORT LEVEL EVEN THOUGH THE CHANGES MAY BE NEGATIVE HE SAYS REACHING OUT TO EMPLOYEES IS CRITICAL WHEN A COMPANY MUST REPORT BAD NEWS OR WHEN THERE'S DOUBT ABOUT A COMPANY'S FUTURE LOUIS V GERSTNER JR FOR EXAMPLE HAS APPEARED ON THE INTERNATIONAL BUSINESS MACHINES CORP NETWORK EIGHT TIMES SINCE HE BECAME CHAIRMAN OF THE TROUBLED COMPUTER MAKER IN MARCH IN NOVEMBER HE DID AN INTERNAL TOWN MEETING ON INTERACTIVE TELEVISION AND EMPLOYEES AT SOME 250 LOCATIONS IN THE US AND CANADA PEPPERED THE CHAIRMAN WITH QUESTIONS FOR 90 MINUTES PEOPLE ARE ENTHUSIASTIC ABOUT SEEING THE CHAIRMAN REGULARLY HAVING HIM DELIVER THE STRAIGHT TALK ABOUT THE STATE OF THE BUSINESS SAYS JOHN BUKOVINSKY IBM'S DIRECTOR OF EMPLOYEE AND MANAGEMENT COMMUNICATIONS TV CAN ALSO BE INVALUABLE IN EMERGENCIES IN 1991 WHEN FOG AT THE MEMPHIS AIRPORT STRANDED THOUSANDS OF FEDERAL EXPRESS CORP PACKAGES THE COMPANY'S TV NETWORK GAVE DETAILED LIVE REPORTS TO WORKERS THROUGHOUT THE DAY AS A RESULT REMOTE LOCATIONS WERE ABLE TO ADJUST STAFF LEVELS AND DELIVERY ROUTES IT COULD HAVE BEEN A LOT WORSE SAYS JOE HOPKINS FEDERAL EXPRESS'S MANAGER OF VIDEO PRODUCTIONS FEDERAL EXPRESS ALSO USES ITS TV NETWORK TO DELIVER BAD NEWS TO EMPLOYEES WHEN THE COMPANY DECIDED TO DROP PACKAGE DELIVERY BETWEEN EUROPEAN COUNTRIES LAST YEAR AND DISMISS 4000 EUROPEAN EMPLOYEES THE COMPANY WENT ON TELEVISION TO INFORM ITS US WORKERS OF THE MOVE AND ASSURE THEM THAT THEIR JOBS WERE SECURE EUROPEAN WORKERS GOT THE BAD NEWS IN PERSON MUCH OF WHAT OCCURS ON CORPORATE TV IS MUNDANE BUSINESS JC PENNEY CO USED TO FLY HUNDREDS OF BUYERS TO DISTRICT HEADQUARTERS WHEN IT BROUGHT OUT A NEW LINE OF WOMEN'S DRESSES NOW THE COMPANY PUTS THE GARMENTS ON TELEVISION SHOWING UP TO 1500 DRESSES USING 24 DIFFERENT LIVE MODELS CHRYSLER CORP HAS ONE OF THE BIGGEST PRIVATE TV NETWORKS IN THE COUNTRY WHICH IT USES TO TARGET 5000 CHRYSLER DEALERS EACH OF WHOM HAS A SPECIAL SATELLITE DISH TO RECEIVE CHRYSLER PROGRAMMING RUDY SANDOVAL WHO OWNS A SMALL DODGE DEALERSHIP IN LAS CRUCES NM SAYS HIS MECHANICS NOW RECEIVE MUCH OF THEIR TRAINING FROM TELEVISION COURSES BROADCAST BY CHRYSLER IT'S QUITE HANDY SAYS MR SANDOVAL WE DON'T HAVE TO TRAVEL FORD STARTED ITS FIRST TV BROADCASTS IN 1984 AT THE TIME FORD WAS JUST RECOVERING FROM SEVERAL FACTORY CLOSINGS AND HUGE CUTS IN ITS HOURLY WORK FORCE FORD'S SENIOR MANAGERS WANTED A BETTER WAY TO COMMUNICATE TO WORKERS WHAT THEY WERE DOING AND HOW THEY WERE RESHAPING THE BUSINESS SAYS GENE MCKELVEY WHO SUPERVISES FORD'S TV NETWORK FORD BEGAN WITH JUST ONE MONTHLY NEWS PROGRAM BUT BY 1989 IT WAS BROADCASTING DAILY TODAY THE DAILY FORD NEWS PROGRAM WHICH IS BROADCAST EACH DAY AT 10 AM AND REPEATED THROUGHOUT THE DAYIS WATCHED BY 60 OF BLUECOLLAR EMPLOYEES AND 40 TO 45 OF WHITECOLLAR EMPLOYEES ACCORDING TO INTERNAL SURVEYS FORD EXECUTIVES SAY THEIR TV NEWS OPERATIONS COST ABOUT 1 MILLION A YEAR TO OPERATE FORD'S GOAL WAS TO MAKE ITS TV SYSTEM A CREDIBLE SOURCE OF INFORMATION FOR ITS EMPLOYEES WHICH MEANT TELLING THE BAD NEWS AS WELL AS THE GOOD FOR EXAMPLE FORD REGULARLY TELEVISES THE PRESS CONFERENCE IT HOLDS AFTER IT RELEASES ITS QUARTERLY FINANCIAL RESULTS DURING 1991 AND 1992 WHEN FORD WAS PILING UP BILLIONS OF DOLLARS IN LOSSES FORD EMPLOYEES WATCHED AS FORD'S VICE PRESIDENT OF FINANCE DAVID N MCCAMMON FIELDED TOUGH QUESTIONS FROM JOURNALISTS IN THE LATE 1980S FORD TV CARRIED SEVERAL STORIES ON THE CONTROVERSY OVER FORD AMBULANCES THAT WERE PRONE TO FIRES IT WAS A TOUCHY PAINFUL SUBJECT SAYS MR MCKELVEY BUT IT WAS REALITY OF COURSE SOME OF THE STORIES FORD DOES RUN ARE SHEER PUFF RECENTLY THE FORD DAILY NEWSCAST FEATURED A 45SECOND STORY ABOUT FORD EXECUTIVE WILLIAM CLAY FORD JR ATTENDING A DEDICATION CEREMONY FOR DEARBORN'S WILLIAM FORD ELEMENTARY SCHOOL AND WHEN THE CHIEF EXECUTIVES OF THE BIG THREE AUTO MAKERS ACCOMPANIED PRESIDENT BUSH ON A TRADE MISSION TO JAPAN LAST YEAR FORD AIRED EXTENSIVE REPORTS FROM AN UNTESTED REPORTER HAROLD A POLING JR FORD'S CHAIRMAN AT THE TIME I TOLD THE JAPANESE HE REPORTED IF THEY DON'T DO SOMETHING ABOUT THEIR TRADE DEFICIT THEN I WON'T BE SURPRISED IF CONGRESS DOES THIS IS RED POLING REPORTING FROM TOKYO 9312070150 931207 AMERADA HESS CORP REFINERY NEW YORK AMERADA HESS CORP SAID IT WILL DISCONTINUE OPERATIONS AT ITS SMALL PETROLEUM REFINERY IN PURVIS MISS ON JAN 15 BECAUSE OF WEAK MARKET CONDITIONS HESS SAID THE PLANT WHICH HAS THE CAPACITY TO REFINE 30000 BARRELS A DAY OF CRUDE WILL BE MOTHBALLED AND KEPT IN SHAPE SO THAT IT COULD START UP IF MARKET CONDITIONS IMPROVE THE REFINERY HAS 160 WORKERS HESS SAID IT WILL OFFER AN EARLYRETIREMENT AND SEVERANCE PROGRAM A NUMBER OF EMPLOYEES WILL BE OFFERED JOBS AT THE COMPANY'S OIL TERMINAL IN PURVIS AND AT OTHER COMPANY REFINERIES HESS SAID 9312070149 931207 TURNER UNIT'S RENOVATION JOB NEW YORK TURNER CONSTRUCTION CO SAID IT RECEIVED A 57 MILLION CONTRACT TO RENOVATE THE NEW YORK HEADQUARTERS OF MUTUAL OF AMERICA LIFE INSURANCE CO THE TURNER CORP UNIT SAID CONSTRUCTION IS ALREADY UNDER WAY TO RETROFIT THE 35STORY 670000SQUAREFOOT PARK AVENUE BUILDING TURNER SAID IT EXPECTS TO COMPLETE THE PROJECT IN MAY 1995 9312070148 931207 STATE REGULATION SUGGESTED FOR VIATICAL' COMPANIES WASHINGTON DC A MODEL ACT INTENDED TO REGULATE THE DEVELOPING MARKET FOR LIFE INSURANCE POLICIES OF TERMINALLY ILL PATIENTS WAS ADOPTED BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS THE ACT CALLED THE VIATICAL SETTLEMENT MODEL ACT SEEKS TO ADDRESS CONCERNS THAT VIATICAL COMPANIES WHICH BUY LIFE INSURANCE POLICIES AT A DISCOUNT FROM THE TERMINALLY ILL MAY SOMETIMES FAIL TO ADEQUATELY INFORM PATIENTS OF THE IMPLICATIONS OF SUCH SALES THE MODEL LAW WHICH WILL BE RECOMMENDED TO STATE LEGISLATORS RECOMMENDS PROVISIONS SUCH AS AGREEDUPON PAYMENT AMOUNTS AND DELIVERY DATES EXPLANATION OF TAX ISSUES AND REMINDERS THAT SUCH SALES MAY AFFECT MEDICAID COVERAGE AND GOVERNMENT BENEFITS IT ALSO REQUIRES VIATICAL FIRMS TO BE LICENSED BY STATE INSURANCE DEPARTMENTS AND TO SUBMIT ANNUAL REPORTS THE MODEL LEGISLATION WAS DRAWN UP BY REGULATORS WITH INPUT FROM INSURANCE AND VIATICAL COMPANIES AS WELL AS PEOPLE WHO HAVE AIDS A VAST MAJORITY OF VIATICAL CLIENTS ARE AIDS PATIENTS AT PRESENT ONLY FOUR STATES CALIFORNIA NEW MEXICO KANSAS AND NEW YORK REGULATE THE INDUSTRY WHILE UTAH PROHIBITS THEM ALTOGETHER ABOUT 200 MILLION IN LIFE INSURANCE PROCEEDS WAS TRANSFERRED THIS YEAR BY VIATICAL CONCERNS IN THE US ACCORDING TO INDUSTRY SOURCES WHO SAY THE FIGURE IS DOUBLING ANNUALLY 9312070147 931207 IF CLINTON ORDERS DOUBLE CHEESE AND ALL THE TOPPINGS IT'S A CRISIS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL HOW'S THIS FOR A SLICE OF LIFE DOMINO'S PIZZA INC SAYS ORDERS ROSE 11 WHEN AMY FISHER OR EITHER OF THE BUTTAFUOCOS WAS ON THE TABLOID TV SHOW A CURRENT AFFAIR WHEN BASKETBALL'S MICHAEL JORDAN RETIRED AT A DAYTIME PRESS CONFERENCE LUNCHTIME PIZZA ORDERS SET A NATIONAL RECORD SUCH ARE THE RESULTS OF THE PIZZA METER FOR 1993 THE FOURTH EDITION OF DOMINO'S ATTEMPT TO LINK PIZZA SALES DELIVERYPERSON SOCIOLOGY AND ACTUAL EVENTS THE LOGIC IS THAT DIALING DOMINO'S IS A SIGN THAT PEOPLE ARE REALLY ENGROSSED IN A TV SHOW AND AREN'T WILLING TO SWEAT OVER A HOT MICROWAVE WE GET TO SEE AMERICANS AS THEY REALLY ARE SAYS TIM MCINTYRE DOMINO'S NATIONAL DIRECTOR OF COMMUNICATIONS WHO RUNS THE SURVEY HIS STAFF INTERVIEWS MORE THAN 200 DRIVERS AND CORRELATES THEIR OBSERVATIONS WITH ACTUAL SALES DATA FOR PARTICULAR PERIODS HE CONCEDES THAT WE TAKE GREAT PRIDE IN HOW UNSCIENTIFIC OUR SURVEY IS BUT HE NOTES THAT SOME OBSERVATIONS MAKE SENSE DOMINO'S BECAME INTERESTED IN PIZZA SOCIOLOGY DURING THE REAGAN ADMINISTRATION WHEN A WASHINGTON FRANCHISEE OBSERVED THAT HE COULD TELL WHEN A CRISIS WAS BREWING BY SOARING NIGHTTIME ORDERS AT THE WHITE HOUSE AND THE CENTRAL INTELLIGENCE AGENCY AFTER WE PUBLICIZED THAT CIA ORDERS DRIED UP SAYS MR MCINTYRE PIZZA ORDERS FROM THE CLINTONS AND THEIR WORKAHOLIC STAFFERS ARE UP 31 FROM THE BEST BUSH YEAR AND WHEN HILLARY IS OUT OF TOWN PIZZA ORDERS RISE 18 ABOVE NORMAL NATIONALLY THE BIGGEST PIZZA DAY OF THE YEAR WAS WHEN THE HOUSE VOTED ON THE CLINTON BUDGET THE FIRST TIME THE BIGGEST DAY WASN'T A SPORTS EVENT BUT THE CLINTON BUDGET HAS BEEN BAD FOR DELIVERY PEOPLE SINCE IT PASSED TIPPING HAS DECLINED BY 4 NATIONALLY 8 IN THE HOUSE AND 13 AMONG HOUSE REPUBLICANS DOMINO'S DELIVERY PEOPLE SAY OTHER TIPPING NEWS THE BEST TIPPERS ARE ADVERTISING FIRMS NONPROFIT ORGANIZATIONS AND MILITARY BASES THE WORST TV STUDIOS INVESTMENT BANKERS AND LAWYERS AND THEN THERE ARE REGIONAL FACTORS SINCE THE FAT CONTENT OF CHINESE FOOD WAS PUBLICIZED THIS FALL SUNDAY EVENING PIZZA ORDERS ARE UP 7 NATIONALLY AND 34 IN NEW YORK LOS ANGELENOS MOSTLY ORDER VEGGIE TOPPINGS EXCEPT AFTER DISASTERS FOLLOWING RIOTS OR EARTHQUAKES THEY ORDER MEAT TOPPINGS 64 OF THE TIME AND DELIVERY PEOPLE SAY NEW JERSEYITES ARE 12 MORE LIKELY TO ASK FOR EXTRA NAPKINS 9312070146 931207 WHO'S NEWS RIEDEL ENVIRONMENTAL PICKS NEW PRESIDENT PORTLAND ORE RIEDEL ENVIRONMENTAL TECHNOLOGIES INC SAID BILL SPICER CHIEF FINANCIAL OFFICER SUCCEEDED FOUNDER ART RIEDEL AS CHIEF EXECUTIVE AND PRESIDENT THE COMPANY ALSO ANNOUNCED THAT IT HIRED GORDIAN GROUP LP A NEW YORK INVESTMENT BANKING FIRM TO NEGOTIATE WITH CREDITORS AND A POTENTIAL INVESTOR RIEDEL LIKE MANY OF ITS COMPETITORS IN THE ENVIRONMENTAL CLEANUP BUSINESS IS STRUGGLING BECAUSE OF THE SLUGGISH ECONOMY AND OTHER PROBLEMS IT HAD A NINEMONTH NET LOSS OF 23 MILLION OR 60 CENTS A SHARE RIEDEL DIDN'T SAY WHY MR SPICER SUCCEEDED MR RIEDEL WHO WILL REMAIN CHAIRMAN OF THE COMPANY RIEDEL ALSO DIDN'T IDENTIFY THE POTENTIAL INVESTOR HOWEVER IT SAID ANY TRANSACTION WITH THE POTENTIAL INVESTOR IS CONTINGENT ON A RESTRUCTURING OF RIEDEL'S CAPITAL STRUCTURE THE DETAILS OF WHICH HAVE NOT BEEN DETERMINED IN LATE AMERICAN STOCK EXCHANGE TRADING YESTERDAY RIEDEL WAS UP 125 CENTS AT 250 9312070145 931207 SOFTKEY WORDSTAR SPINNAKER AMEND PACT FOR PLANNED MERGER TORONTO SOFTKEY SOFTWARE PRODUCTS INC WORDSTAR INTERNATIONAL INC AND SPINNAKER SOFTWARE CORP HAVE AMENDED THEIR PREVIOUSLY ANNOUNCED MERGER AGREEMENT UNDER THE AMENDED MERGER OF THE THREE COMPUTER SOFTWARE COMPANIES SPINNAKER SHAREHOLDERS WILL NOW RECEIVE BETWEEN 1599 AND 1641 WORDSTAR COMMON SHARES FOR EACH SPINNAKER COMMON SHARE DEPENDING ON THE NUMBER OF SPINNAKER COMMON SHARES SUBSCRIBED FOR UNDER THE PREVIOUSLY ANNOUNCED SPINNAKER RIGHTS OFFERING TO BE COMPLETED IN CONJUNCTION WITH THE MERGER IN THE EVENT OF THE MERGER ONLY OF SOFTKEY AND SPINNAKER SOFTKEY SHAREHOLDERS WILL NOW RECEIVE BETWEEN 2194 AND 2252 SPINNAKER COMMON SHARES FOR EACH SOFTKEY COMMON SHARE AGAIN DEPENDING ON THE NUMBER OF SPINNAKER COMMON SHARES SUBSCRIBED FOR UNDER THE SPINNAKER RIGHTS OFFERING THE COMPANIES SAID THE AMENDMENT WAS MADE TO QUANTIFY THE RISK AND ELIMINATE THE UNCERTAINTY ASSOCIATED WITH LITIGATION BETWEEN SPINNAKER AND SOFTWARE PUBLISHING CORP SPINNAKER SAID AN ARBITRATION PANEL ORDERED IT ON DEC 3 TO PAY 14 MILLION PLUS INTEREST AND ATTORNEY'S FEES TO SOFTWARE PUBLISHING FOR BREACH OF CONTRACT DAMAGES SPINNAKER SAID IT DOESN'T EXPECT THE DECISION TO AFFECT ITS MERGER PLANS UNDER THE ORIGINAL MERGER AGREEMENT THE WORDSTAR/SPINNAKER EXCHANGE RATIO IN THE THREEPARTY MERGER WOULD RANGE FROM 1615 TO 1657 AND THE SOFTKEY/SPINNAKER EXCHANGE RATIO IN THE TWOPARTY MERGER WOULD RANGE FROM 2172 TO 2230 IN EACH CASE DEPENDING ON THE SUBSCRIPTION RATE UNDER THE SPINNAKER RIGHTS OFFERING IN ADDITION THE PARAMETERS OF EACH EXCHANGERATIO RANGE WERE TO BE SUBJECT TO THE ABOVEMENTIONED CONTINGENCY ADJUSTMENT THE NEW EXCHANGE RATIOS ARE NO LONGER SUBJECT TO THE CONTINGENCY ADJUSTMENT 9312070144 931207 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN COMMUNITY FOREIGN MINISTERS WATERED DOWN A PROPOSED ECRUSSIAN DECLARATION TO REFLECT THE SLOW PACE OF TALKS ON A TRADE AND COOPERATION PACT REVISIONS MUST BE APPROVED BY RUSSIAN NEGOTIATORS BUT EC OFFICIALS HOPE THE DECLARATION CAN BE SIGNED WHEN RUSSIAN PRESIDENT BORIS YELTSIN MEETS IN BRUSSELS WITH TRADEBLOC LEADERS THURSDAY THE DAY BEFORE AN EC SUMMIT BEGINS A PROVISION IN THE DRAFT DECLARATION INDICATING AGREEMENT ON THE MAIN PRINCIPLES OF THE COOPERATION PACT WAS DELETED AFTER EC FOREIGN MINISTERS COMPLAINED ABOUT RESOLUTION OF SEVERAL ISSUES THE EC HAD HOPED TO COMPLETE THE TRADE AND COOPERATION ACCORD BEFORE THE SUMMIT TO GIVE MR YELTSIN A BOOST IN RUSSIA'S DEC 12 PARLIAMENTARY ELECTIONS IN A BID FOR QUICK COMPLETION OF THE PARTNERSHIP EC MEMBERS LAST MONTH AGREED ON TRADE CONCESSIONS TO RUSSIA BUT SNAGS DEVELOPED ON ISSUES SUCH AS EC MARKET ACCESS FOR RUSSIAN ALUMINUM AND RUSSIAN CURBS ON FOREIGN BANK OPERATIONS THE INDIAN GOVERNMENT PROMISED TO SHIELD FARMERS FROM AN INTERNATIONAL PATENTPROTECTION PLAN THAT WOULD FORCE THEM TO PAY ROYALTIES ON HIGHYIELD SEEDS OFFICIALS FEAR PROPOSED GLOBAL TRADE RULES COULD RUIN SMALL FARMERS IN INDIA WHERE ALMOST TWOTHIRDS OF THE 880 MILLION PEOPLE DEPEND ON AGRICULTURE FARMERS SAY THAT THE PATENTPROTECTION PLANS WOULD GIVE US SEED COMPANIES RIGHTS OVER SEEDS USED IN INDIA AND THAT A NEW TRADE TREATY WOULD REDUCE INDIAN FARMING SUBSIDIES SUCH AS FOR SEEDS INDIA PLANS LEGISLATION TO LET FARMERS PAY FOR PATENTED SEEDS TO PRODUCE ROYALTYFREE SEEDS FOR SUBSEQUENT CROPS UKRAINE'S GOVERNMENT TRYING TO COPE WITH 70 MONTHLY INFLATION AND A CHRONIC FUEL SHORTAGE JACKED UP PRICES OF FOOD ENERGY AND TRANSPORTATION PRICES OF BREAD MILK EGGS MEAT AND OTHER STAPLES TRIPLED AMID UKRAINE'S COLDEST WINTER IN EIGHT DECADES ELECTRICITY RATES MORE THAN DOUBLED IN RURAL AREAS AND MORE THAN TRIPLED IN CITIES SUBWAY AND BUS FARES SOARED FIVEFOLD UKRAINE RELIES ON FUEL FROM RUSSIA WHICH PLANS TO START CHARGING WORLD PRICES EARLY NEXT YEAR COLOMBIA VENEZUELA AND MEXICO WORKED OUT DETAILS OF A FREETRADE PACT WHICH IS TO BE SIGNED IN JANUARY THE AGREEMENT COVERING A COMBINED MARKET OF 145 MILLION PEOPLE IS THE LATEST EFFORT BY LATIN AMERICAN COUNTRIES SEEKING TO OPEN THEIR ONCEPROTECTIONIST ECONOMIES SEPARATELY AN ISLAMIC GATHERING IN MALAYSIA WAS URGED TO FORM AN ISLAMIC TRADE AND ECONOMIC FORUM TO STRENGTHEN ECONOMIC COOPERATION AND REDUCE TRADE BARRIERS BETWEEN ISLAMIC AND OTHER NATIONS ISLAMIC COUNTRIES PRODUCE 50 OF THE WORLD'S CRUDE OIL AND EXPORT 40 OF RAW MATERIALS CONSTRUCTION OF A NUCLEAR REACTOR IN NORTHERN JAPAN IS BEING DEFERRED FOR A YEAR TO RESOLVE COMPENSATION TO FISHERMEN WITH RIGHTS TO WORK IN NEARBY WATERS ELECTRIC POWER DEVELOPMENT CO PLANS TO BUILD THE ADVANCED THERMAL REACTOR IN OMAMACHI ON HONSHU THE LARGEST OF JAPAN'S FOUR MAIN ISLANDS CONSTRUCTION WORK ON A DEMONSTRATION REACTOR NOW IS TO BEGIN IN APRIL 1997 AND THE PLANT COULD START OPERATING IN MARCH 2003 WESTERN GERMAN INDUSTRIAL COMPANIES PLEDGED TO INCREASE THEIR PURCHASING IN EASTERN GERMANY TO 1453 BILLION BY 1995 OR TWICE LAST YEAR'S TOTAL THE PLEDGE WAS MADE IN A MEETING WITH GERMAN CHANCELLOR HELMUT KOHL ON REBUILDING THE EASTERN REGION BANKS AND INSURERS SAID THEY HAD FAILED TO MAKE GOOD ON EARLIER COMMITMENTS BY EACH SECTOR TO INVEST 580 MILLION IN THE REGION ABOUT 20 OF GERMAN GOVERNMENT PROCUREMENT IN THE FIRST HALF WAS MADE IN EASTERN GERMANY THE UNITED NATIONS CONVENTION ON THE LAW OF THE SEA WHICH COVERS ALMOST ALL USES OF OCEANS AND THEIR RESOURCES WAS RATIFIED BY THE REQUIRED 60 COUNTRIES ALLOWING IT TO TAKE EFFECT NOV 16 1994 THE CONVENTION WAS OPENED FOR SIGNING IN DECEMBER 1982 FOLLOWING NINE YEARS OF NEGOTIATIONS THE ACCORD HAS BEEN SIGNED BY 159 STATES BUT 99 HAVE YET TO RATIFY IT INCLUDING JAPAN FRANCE AND RUSSIA AMONG MAJOR INDUSTRIAL NATIONS THE US GERMANY AND BRITAIN HAVEN'T SIGNED THE TREATY MAINLY BECAUSE OF OBJECTIONS TO PROVISIONS FOR MINING OREBEARING ROCKS ON THE OCEAN BED BEYOND NATIONAL JURISDICTION THE CONVENTION DECLARES THOSE DEPOSITS OF NICKEL COPPER MANGANESE AND COBALT TO BE A COMMON HERITAGE THE US REGARDS THE SEABED MINING RULES AS RESTRICTIVE AND INIMICAL TO PRIVATE ENTERPRISE MANY COUNTRIES ARE ALREADY APPLYING OTHER PARTS OF THE 320ARTICLE CONVENTION SUCH AS GIVING COASTAL STATES THE RIGHT TO ESTABLISH TERRITORIAL LIMITS AND EXCLUSIVE ECONOMIC ZONES TO CONTROL NATURAL RESOURCES INCLUDING FISH AND MINERALS ABOUT 120000 TEACHERS IN ECUADOR ENDED A TWOMONTH STRIKE THAT HAD TURNED VIOLENT AND PROMPTED AN ARMYENFORCED CLAMPDOWN THE GOVERNMENT WHICH LAST YEAR GOT TOUGH ON INFLATION AND THE BUDGET DEFICIT AGREED TO TEACHERS' DEMANDS FOR A 50 WAGE INCREASE MANY MOSCOW BANKS WILL SHUT TODAY IN A ONEDAY PROTEST OF LAST WEEK'S KILLING OF A BANKING EXECUTIVE THE SEVENTH THIS YEAR RUSSIAN INVESTIGATORS TERMED THESE CONTRACT MURDERS BY ORGANIZED CRIME WHICH HAS BLOSSOMED ALONG WITH CAPITALISTIC PURSUITS