LOCKHEED CORP CALABASAS CALIF LYNNE V CHENEY WAS ELECTED A DIRECTOR OF THIS MILITARY AEROSPACE AND ELECTRONICS CONCERN INCREASING THE BOARD'S SIZE TO 14 MEMBERS MRS CHENEY 52 YEARS OLD WAS CHAIRMAN OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES FROM 1986 TO 1993 AND CURRENTLY SERVES ON THE BOARD OF THE READER'S DIGEST ASSOCIATION SHE IS THE WIFE OF FORMER SECRETARY OF DEFENSE RICHARD B CHENEY 9312070141 931207 CARNIVAL SETS FINCANTIERI PACT MIAMI CARNIVAL CRUISE LINES INC SAID IT SIGNED A CONTRACT WITH AN ITALIAN SHIPYARD FINCANTIERI CANTIERI NAVALI ITALIANI SPA TO BUILD A NEW CRUISE SHIP FOR ITS HOLLAND AMERICA UNIT FOR 225 MILLION THE VESSEL IS EXPECTED TO BE COMPLETED BY SPRING 1996 CARNIVAL SAID FINCANTIERI HAS BUILT TWO SHIPS FOR HOLLAND AMERICA WITH A THIRD UNDER CONSTRUCTION IN ADDITION THE ITALIAN SHIPYARD IS UNDER CONTRACT WITH CARNIVAL TO BUILD A 95000TON VESSEL WHICH WOULD BE THE LARGEST PASSENGER CRUISE SHIP EVER BUILT 9312070139 931207 MARKETING & MEDIA MARKETSCAN NEW PRODUCTS HELP SALES FLOW BY KATHLEEN DEVENY THEY ARE PRODUCTS MOST CONSUMERS DON'T WANT TO THINK ABOUT UNTIL WATER RISES UP AROUND THEIR ANKLES DRAIN CLEANERS BUT THE HUMBLE HOUSEHOLD PRODUCTS HAVE BECOME UNLIKELY STARS OF THE SUPERMARKET IN RECENT MONTHS THANKS TO A FLURRY OF NEW PRODUCTS BACKED BY HEFTY AD BUDGETS SALES OF DRAIN CLEANERS INCREASED 269 DURING THE THIRD QUARTER COMPARED WITH THE YEAREARLIER PERIOD ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE DRIVING THAT GROWTH LIQUIDPLUMR BUILDUP REMOVER LAUNCHED EARLIER THIS YEAR BY CLOROX CO AND DRANO BUILDUP REMOVER FROM SC JOHNSON & SON INC MARKETERS SAY THE PRODUCTS TAKE A NEW APPROACH USING MICROORGANISMS TO PRODUCE ENZYMES THAT EAT ORGANIC BUILDUP INSIDE PIPES UNLIKE MORE CONVENTIONAL CLOGFIGHTERS TYPICALLY MADE WITH BLEACH THE NEW PRODUCTS AREN'T CAUSTIC CONSUMERS ARE URGED TO USE THEM EVERY TWO WEEKS TO PREVENT SLOW DRAINS FAR MORE FREQUENTLY THAN CONVENTIONAL DRAIN OPENERS COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LIST OF FASTESTGROWING PRODUCTS IS BASED ON SALES DATA FROM SUPERMARKET SCANNERS EACH QUARTER INFORMATION RESOURCES RANKS MORE THAN 323 PRODUCT CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE GROWTH COMPARED WITH THE YEAREARLIER PERIOD THE SUCCESS OF THE DRAIN CLEANERS UNDERSCORES THE FACT THAT INNOVATION CAN INVIGORATE EVEN THE MOST MUNDANE OF PRODUCT CATEGORIES MARKETING EXPERTS SAY NEWPRODUCT DEVELOPMENT HAS BECOME MORE IMPORTANT THAN EVER AS MOUNTING COMPETITION FROM PRIVATELABEL RIVALS MAKES IT MORE DIFFICULT FOR NATIONAL BRANDS TO RAISE PRICES THE NEW DRAIN OPENERS ARE SUCCEEDING MARKETING EXPERTS SAY BECAUSE THEY ARE SOLD UNDER FAMILIAR BRAND NAMES AND BECAUSE THEY CLAIM TO SOLVE A PROBLEM MANY CONSUMERS FIND IRRITATING INDEED NEW PRODUCTS CONTRIBUTED TO THE GROWTH OF MANY BESTSELLING CATEGORIES IN THE SUPERMARKETS REFLECTING A WAVE OF NEW BEVERAGES FROM SUCH POWERFUL MARKETERS AS COCACOLA CO AND PEPSICO INC SALES OF ICED TEA DRINKS MORE THAN TRIPLED DURING THE THIRD QUARTER SWEET SUCCESS A NEW PRODUCT FROM A UNIT OF NESTLE SA HELPED KEEP LIQUID DIETS ON THE LIST OF HOT SELLERS FUELED BY THE LAUNCH OF NEW FLAVORS SALES OF SIDEDISH MIXES SUCH AS QUAKER OATS CO'S NOODLE RONI ALSO SOARED IN MOST BASIC CATEGORIES IN THE SUPERMARKET THE ISSUE IS NOT REINVENTING THE WHEEL SAYS STEVE ROTH A DIRECTOR OF RESEARCH INTERNATIONAL CONSULTING NEW YORK IT'S CHANGING THE SHAPE OF IT 9312070138 931207 GOLDMAN PARTNERS MAY GET BONUSES OF OVER 5 MILLION BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMID THE RAGING WALL STREET BOOM PARTNERS AT PRIVATE INVESTMENT BANK GOLDMAN SACHS & CO STAND TO RECEIVE 5 MILLIONPLUS BONUSES FOR 1993 THAT HEFTY YEAREND PAYCHECK AUGURS WELL FOR OTHER WALL STREET WALLETS GOLDMAN'S 161 PARTNERS WILL DIVVY UP MOST OF A BONUS POOL CONSERVATIVELY ESTIMATED AT MORE THAN 18 BILLION FIGURES SUPPLIED BY GOLDMAN TO THE CANADIAN BOND RATING SERVICE INDICATE SLIGHTLY MORE THAN HALF OF GOLDMAN'S 8000 EMPLOYEES ALSO WILL BE PAID BONUSES FROM THE POOL BUT IF THE PARTNERS TAKE A NOTUNLIKELY MAJORITY OF THE TOTAL THEY'LL GET OVER 5 MILLION EACH GOLDMAN TRADITIONALLY IS THE FIRST OF THE MAJOR INVESTMENT BANKS TO DOLE OUT BONUSES ITS LARGESSE AND PROFITABILITY THIS YEAR INDICATES THAT SIZABLE BONUSES MAY BE LIKELY FOR MUCH OF THE INDUSTRY'S TOPTIER WORK FORCE MOST WALL STREET FIRMS PAY BONUSES IN JANUARY AND FEBRUARY AS A PRIVATE PARTNERSHIP GOLDMAN DOESN'T DISCLOSE ITS EARNINGS OR EXECUTIVE PAY AND DECLINED TO COMMENT BUT A REPORT TO THE CANADIAN BOND RATING SERVICE A MONTREALBASED DEBTRATING SERVICE PUTS GOLDMAN'S PRETAX PROFIT IN THE FIRST NINE MONTHS OF ITS FISCAL YEAR ENDED NOV 30 AT 23 BILLION ASSUMING A SIMILAR PERMONTH TOTAL FOR THE LAST THREE MONTHS OF THE FISCAL YEAR AND A CORPORATE TAX BITE OF 40 A HIGHEND ESTIMATE GIVEN GOLDMAN'S TAXFAVORED STATUS AS A PARTNERSHIP THE POT TO BE DISTRIBUTED AMONG EMPLOYEES RECEIVING BONUSES EXCEEDS 18 BILLION THE MULTIMILLIONDOLLAR PAYCHECKS AREN'T AN IMMEDIATE WINDFALL THE MONEY ESSENTIALLY IS A PENSION FUND AVAILABLE TO THE EXECUTIVES ONLY UPON RETIREMENT OR DEPARTURE FROM THE COMPANY HOWEVER PARTNERS CAN WITHDRAW INTEREST ON IT GOLDMAN'S PARTNER COMPENSATION IS SUBJECTIVE AND SPECIFIC TO EACH INDIVIDUAL BUT IS KEYED TO THE FIRM'S PROFITABILITY THE HUGE JUMP IN PRETAX PROFIT FROM 940 MILLION A YEAR EARLIER INDICATES THAT GOLDMAN'S TOP EXECUTIVES' BONUSES LIKELY WILL BE HUGE LAST YEAR ROBERT E RUBIN THEN COCHAIRMAN HAD INCOME OF 265 MILLION FOR GOLDMAN'S FISCAL YEAR ENDED NOV 30 WHICH REFLECTED HIS SHARE OF GOLDMAN'S PROFIT GOLDMAN IN RECENT YEARS HAD PAID MIDLEVEL EMPLOYEES WHO AREN'T PARTNERS YEAREND BONUSES EQUAL TO 20 TO 25 OF THEIR ANNUAL SALARIES 9312070137 931207 DIVIDEND NEWS COMPUTER SCIENCES CORP COMPUTER SCIENCES CORP EL SEGUNDO CALIF DECLARED A 3FOR1 STOCK SPLIT IN THE FORM OF A 200 COMMON STOCK DIVIDEND PAYABLE DEC 22 TO STOCK OF RECORD THE SAME DATE THE INFORMATION TECHNOLOGY SERVICES CONCERN HAD 17078000 AVERAGE SHARES OUTSTANDING AS OF OCT 1 THE END OF THE SECOND QUARTER A SPOKESMAN SAID THE SPLIT IS INTENDED TO MAKE THE STOCK MORE ACCESSIBLE TO INDIVIDUAL INVESTORS 9312070136 931207 INTERNATIONAL RIVAL LWT HOLDINGS REJECTS TAKEOVER BID BY GRANADA GROUP SPECIAL TO THE WALL STREET JOURNAL LONDON GRANADA GROUP PLC BECAME THE SECOND UK TELEVISION COMPANY IN AS MANY WEEKS TO LAUNCH A TAKEOVER BID FOR A SMALLER RIVAL HOWEVER THE STYLE AND POSSIBLY THE RESULT OF THE BIDS HAS BEEN VERY DIFFERENT ANALYSTS SAID GRANADA ANNOUNCED A SHARE OFFER FOR LWT HOLDINGS PLC THAT VALUES THE COMPANY AT 600 MILLION 8946 MILLION BASED ON SIX GRANADA SHARES FOR EVERY FIVE OF LWT LWT REJECTED IT MONDAY A WEEK EARLIER CARLTON COMMUNICATIONS PLC ANNOUNCED PLANS TO BUY CENTRAL INDEPENDENT TELEVISION PLC FOR 624 MILLION CENTRAL SAID IT WILL RECOMMEND THE OFFER TO ITS SHAREHOLDERS CARLTON HAS HELD JUST UNDER 20 OF CENTRAL SINCE 1987 THE GRANADA OFFER VALUES LWT SHARES AT 5805 PENCE EACH A 08 DISCOUNT TO THE STOCK'S CLOSING PRICE FRIDAY EXPLAINING ITS APPARENTLY LOW OFFER GRANADA SAID IN THE OPINION OF THE DIRECTORS OF GRANADA THE LWT SHARE PRICE AT THAT DATE INCLUDED A SIGNIFICANT SPECULATIVE BID PREMIUM LWT WHICH HOLDS THE WEEKEND BROADCASTING FRANCHISE FOR THE LONDON AREA SAID GRANADA'S OFFER DOESN'T REFLECT LWT'S PERFORMANCE AND PROSPECTS SEPARATELY GRANADA SAID PRETAX PROFIT FOR THE 53 WEEKS ENDED OCT 2 ROSE 53 TO 176 MILLION FROM 115 MILLION ON SIGNIFICANT GAINS IN ALL DIVISIONS GRANADA RAISED ITS DIVIDEND 14 TO 875 PENCE PER SHARE 9312070135 931207 BUSINESS BRIEF WOOLWORTH'S RATINGS ON 17 BILLION IN DEBT ARE CUT BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT LOWERED THE RATINGS ON WOOLWORTH CO LONGTERM DEBT TOTALING ABOUT 17 BILLION MOODY'S SAID IT DOWNGRADED THE RETAILER'S RATINGS TO SINGLEA3 FROM SINGLEA1 BECAUSE IT EXPECTED THAT THE COMPANY'S OPERATING PERFORMANCE WOULD NOT BE CONSISTENT WITH THE A1 RATING CATEGORY MOODY'S SAID WOOLWORTH HAS A LIMITED PORTFOLIO OF PROVEN MERCHANDISING CONCEPTS AND HAS HAD DIFFICULTY EXECUTING MERCHANDISING STRATEGIES CHANGING CONSUMER PREFERENCES AND A FUNDAMENTAL DECLINE IN LONGTERM DEMAND IN MANY OF WOOLWORTH'S MARKETS WILL MAKE IT DIFFICULT FOR WOOLWORTH TO REESTABLISH THE EARNINGS NEEDED TO STAY IN THE CATEGORY MOODY'S SAID MOODY'S SAID THAT DESPITE THE STRENGTH OF WOOLWORTH'S FOOT LOCKER BUSINESS AND THE COMPANY'S SOUND BALANCE SHEET THE GROWTH OF SUPERSTORES AND DISCOUNT RETAILERS HAS RENDERED THE TRADITIONAL WOOLWORTH VARIETY STORE A LESS COMPETITIVE RETAILING VEHICLE WOOLWORTH DECLINED TO COMMENT ON THE DOWNGRADE THE NEW YORK COMPANY OPERATES MORE THAN 9000 STORES IN NORTH AMERICA EUROPE AUSTRALIA AND ASIA UNDER TRADE NAMES INCLUDING WOOLWORTH KINNEY FOOT LOCKER AFTERTHOUGHTS AND CHAMPS SPORTS 9312070134 931207 WHO'S NEWS WOMAN CHOSEN BY PENN TO BE ITS NEXT PRESIDENT PHILADELPHIA THE UNIVERSITY OF PENNSYLVANIA NOMINATED JUDITH RODIN PROVOST OF YALE UNIVERSITY TO BE ITS NEXT PRESIDENT AND THE FIRST WOMAN TO HEAD AN IVY LEAGUE INSTITUTION MS RODIN 49 YEARS OLD IS A BEHAVIORAL PSYCHOLOGIST WHO HAS SERVED AS YALE'S PROVOST SINCE LAST YEAR AND HAD TAUGHT AT THE UNIVERSITY SINCE 1972 A PHILADELPHIA NATIVE SHE RECEIVED HER BACHELOR'S DEGREE IN PSYCHOLOGY FROM PENN IN 1966 AND HER DOCTORATE FROM COLUMBIA UNIVERSITY IN 1970 IF APPROVED BY PENN'S TRUSTEES AT A MEETING SCHEDULED FOR DEC 16 MS RODIN WOULD SUCCEED INTERIM PRESIDENT CLAIRE M FAGIN WHO TOOK OVER IN JULY WHEN SHELDON HACKNEY RESIGNED TO BECOME CHAIRMAN OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES THE PENN CAMPUS HAS BEEN EMBROILED THIS YEAR IN A DEBATE OVER POLITICAL CORRECTNESS AFTER A STUDENT WAS CHARGED WITH VIOLATING CAMPUS POLICIES ON RACIAL HARASSMENT BY CALLING A GROUP OF BLACK FEMALE STUDENTS WATER BUFFALO AFTER MUCH PUBLICITY THE WOMEN EVENTUALLY DROPPED THE CHARGES AND THE SCHOOL LAST MONTH RESCINDED ITS HATESPEECH CODE 9312070133 931207 TECHNOLOGY & SCIENCE AMA SAYS MANAGEDCARE HEALTH PLANS SHOULD ALLOW MORE DOCTORS TO PRACTICE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW ORLEANS DOCTORS WHO ARE BATTLING FOR JOB SECURITY WITH MAJOR HEALTH PLANS ARE ABOUT TO GET SOME SUPPORT FROM THE AMERICAN MEDICAL ASSOCIATION BUT PROBABLY LESS THAN SOME PHYSICIANS WANT IN RECENT MONTHS DOCTORS IN A VARIETY OF STATES HAVE BEEN UPSET TO LEARN THAT THEY CAN'T JOIN THE SERVICE ROLLS OF MAJOR MANAGEDCARE HEALTH PLANS OR ARE BEING DROPPED BY PLANS TO WHICH THEY BELONG SUCH RESTRICTIONS MEAN MAJOR LOSSES OF PATIENTS AND INCOME FOR DOCTORS WHO HAD COUNTED ON THE HEALTH PLANS FOR BUSINESS IN A LENGTHY COMMITTEE DEBATE YESTERDAY AT THE AMA'S CONVENTION IN NEW ORLEANS TEXAS PHYSICIANS URGED THE DOCTORS' ASSOCIATION TO TAKE A HARDLINE STAND AGAINST SUCH ACTION BY HEALTH PLANS DOCTOR TERMINATION FROM PLANS IS THE NO 1 HASSLE THAT THE TEXAS MEDICAL ASSOCIATION HAS WITH MANAGED CARE SAID B DAVID VANDERPOOL JR A DALLAS PHYSICIAN HEALTH PLANS HAVE SAID THEY ARE NARROWING THEIR LISTS OF APPROVED DOCTORS FOR VARIOUS REASONS INCLUDING EFFICIENCY PHYSICIANS HAVE COMPLAINED THAT THE CUTBACKS APPEAR ARBITRARY DR VANDERPOOL CITED RECENT EXPERIENCE IN HOUSTON WHERE 30 DOCTORS WERE DROPPED BY HEALTH PLANS RUN BY AETNA LIFE & CASUALTY CO SIMILARLY FLORIDA DOCTOR FREDERICK SCHILD SAID 100 PHYSICIANS IN HIS STATE WERE DROPPED BY A MAJOR MANAGEDCARE PLAN WITHOUT ANY REASON EXCEPT PROBABLY ECONOMIC DR SCHILD ADDED WE NEED TO HAVE DUE PROCESS IN MANAGED CARE THE TEXAS DELEGATION WHICH GENERALLY LEADS THE CONSERVATIVE WING OF THE AMA IS URGING THE AMA TO PUSH FOR FEDERAL LAWS THAT WOULD REQUIRE HEALTH PLANS TO ACCEPT ANY WILLING AND QUALIFIED PHYSICIAN A HANDFUL OF STATES CURRENTLY HAVE SUCH PROVISIONS BUT IN MOST OF THE US HEALTH PLANS CAN NARROW THEIR LIST OF APPROVED DOCTORS AS THEY SEE FIT THE AMA'S LEADERSHIP APPEARS TO BE OPTING FOR A MORE MODERATE COURSE IT PUT FORTH A 10POINT PLAN URGING THAT MANAGEDCARE PLANS APPROVE ANY DOCTOR WHO MEETS OBJECTIVE CRITERIA BASED PRIMARILY ON PROFESSIONAL COMPETENCE THE AMA TRUSTEES ACKNOWLEDGED THAT HEALTH PLANS MAY LIMIT THE NUMBER LOCATION AND SPECIALTY OF APPROVED DOCTORS BUT SAID THOSE CRITERIA SHOULD BE MADE PUBLIC THE AMA'S PRECISE POLICY WON'T BE DETERMINED UNTIL DELEGATES TO THE CONVENTION VOTE EITHER TODAY OR TOMORROW BUT BASED ON YESTERDAY'S DEBATE IT APPEARS LIKELY THAT THE TRUSTEES' FORMULATION WILL PREVAIL DOCTORS IN WISCONSIN OREGON AND CALIFORNIA SAID THEY ALREADY HAVE FORMED PHYSICIANOWNED GROUP PRACTICES AND WANT THE RIGHT TO PICK AND CHOOSE WHICH NEW DOCTORS JOIN THEIR OWN PRACTICES WE HAVE TO USE ECONOMIC CRITERIA IF WE'RE GOING TO SURVIVE SAID KATHLEEN WEAVER A PORTLAND ORE INTERNIST WHO IS PART OF A 10DOCTOR GROUP PRACTICE GOING ONE STEP FURTHER A CALIFORNIA DOCTOR CONTENDED THAT IF THE AMA TAKES TOO HARD A LINE AGAINST SELECTIVITY BY HEALTH PLANS IT COULD LOSE THOUSANDS OF MEMBERS WHO CURRENTLY RUN GROUP PRACTICES OF THEIR OWN 9312070132 931207 HIGH COURT WILL DECIDE MISSOURI CASE ON HIGHER TAXES FOR OUTOFSTATE GOODS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER STATES MAY IMPOSE SLIGHTLY HIGHER TAXES ON GOODS BOUGHT FROM OUTSIDE THE STATE THAN ON INSTATE PURCHASES THE JUSTICES WILL USE A BUSINESS TRADE GROUP'S CONSTITUTIONAL CHALLENGE TO MISSOURI'S TAX SYSTEM TO DECIDE THE ISSUE TENNESSEE IS THE ONLY OTHER STATE THAT HAS A SIMILAR TAX SYSTEM AND COULD BE IMMEDIATELY AFFECTED BY THE HIGH COURT'S RULING ACCORDING TO STATE TAX EXPERTS MISSOURI IMPOSES A UNIFORM 5725 USE TAX ON GOODS PURCHASED OUTSIDE THE STATE BUT USED OR STORED INSTATE THE STATE IMPOSES A 4225 SALES TAX ON PRODUCTS PURCHASED WITHIN THE STATE COUNTIES AND MUNICIPALITIES MAY COLLECT ADDITIONAL SALES TAXES ON GOODS BOUGHT WITHIN THEIR JURISDICTIONS EVEN WITH THE ADDITIONAL LOCAL LEVIES FACTORED IN THE TOTAL SALES TAX ON INSTATE TRANSACTIONS IS STILL LOWER IN MOST PARTS OF MISSOURI AS A RESULT IN MOST LOCALITIES RESIDENTS WHO BUY AN ITEM FROM A MISSOURI SELLER WOULD BE TAXED AT A LESSER RATE THAN NEIGHBORS WHO PURCHASE THE SAME ITEM THROUGH THE MAIL FROM A VENDOR IN ANOTHER STATE THE US SUPREME COURT HAS INTERPRETED THE CONSTITUTION AS PROHIBITING STATES AND LOCALITIES FROM DISCRIMINATING AGAINST INTERSTATE COMMERCE BUT A CHALLENGE TO THE STATE'S TAX SYSTEM ON THIS BASIS WAS REJECTED BY MISSOURI'S TOP COURT THE STATE COURT SAID THAT ANY DISCRIMINATION AGAINST INTERSTATE COMMERCE CAUSED BY THE MISSOURI SYSTEM WAS TOO INSIGNIFICANT TO BE CONSIDERED UNCONSTITUTIONAL INDEED THE STATE COURT FOUND THAT OVERALL THE TAX BURDEN ON INTERSTATE BUSINESS WAS ACTUALLY SMALLER THAN ON INSTATE BUSINESS THAT WAS BECAUSE OF THE ADDITIONAL SALES TAXES LEVIED BY SOME OF THE STATE'S MORE POPULOUS COUNTIES WITH LARGER CONSUMER MARKETS VIEWED IN TERMS OF TOTAL REVENUE COLLECTED THE STATE COURT CONCLUDED THE USE TAX ON OUTOFSTATE PURCHASES WAS LESS ONEROUS THAN THE AGGREGATE TAXES ON INSTATE TRANSACTIONS DEFENDING THE STATE COURT RULING ATTORNEYS FOR MISSOURI SAID IN A BRIEF THAT THE OVERALL EFFECT OF THE MISSOURI SALES/USE TAX STATUTES IS MORE IMPORTANT THAN INDIVIDUAL INSTANCES WHERE INEQUALITY EXISTED 9312070131 931207 AMERITECH PLANS TO SEEK PERMISSION FOR A TRYOUT IN LONGDISTANCE SERVICE BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL AMERITECH CORP IS SEEKING TO ENTER THE LONGDISTANCE MARKET AND COULD BE THE FIRST BABY BELL TO TAKE AIM AT THE 60 BILLION BUSINESS DOMINATED BY AMERICAN TELEPHONE & TELEGRAPH CO AMERITECH THIS WEEK IS EXPECTED TO ASK THE JUSTICE DEPARTMENT FOR PERMISSION TO START A TEST BY 1995 OFFERING LONGDISTANCE SERVICE FOR CALLS HEADING OUT OF ILLINOIS ONE OF THE FIVE MIDWEST STATES WHERE AMERITECH NOW HAS A VIRTUAL MONOPOLY ON LOCAL TELEPHONE SERVICE JUSTICE DEPARTMENT OFFICIALS ARE VIEWING THE PROPOSAL FAVORABLY ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN THAT COULD BE AN IMPORTANT FACTOR IN THE EFFORT TO WIN FINAL APPROVAL FROM US DISTRICT JUDGE HAROLD GREENE WHO OVERSEES THE CONSENT DECREE BY WHICH THE OLD AT&T WAS BROKEN UP AND THE BABY BELLS WERE FORMED A DECADE AGO ALL SEVEN BABY BELLS HAVE PUSHED HARD TO BE ALLOWED INTO THE LONGDISTANCE BUSINESS SPARKING LOUD OBJECTIONS FROM AT&T AND THE TWO OTHER MAJOR RIVALS IN THE MARKET MCI COMMUNICATIONS CORP AND SPRINT CORP OPPONENTS HAVE ARGUED THAT THE BABY BELLS SHOULDN'T BE ALLOWED IN LONGDISTANCE BECAUSE THEY ENJOY A MONOPOLY IN LOCAL PHONE SERVICE BUT AMERITECH HAS SOUGHT TO SIDESTEP THAT ARGUMENT BY OFFERING TO SURRENDER ITS OWN MONOPOLY RIGHTS EARLIER THIS YEAR THE CHICAGOBASED BELL COMPANY TOLD FEDERAL REGULATORS IT WOULD THROW OPEN ITS LOCALCALLING MARKET TO ALL COMERS IN EXCHANGE FOR THE RIGHT TO OFFER LONGDISTANCE SERVICES IN THE FIVE STATES IT SERVES RICHARD BROWN AMERITECH'S VICE CHAIRMAN WOULDN'T COMMENT ON THE NEW ILLINOIS PLAN BUT HE DID SAY THAT AMERITECH IS AGGRESSIVELY PURSUING ITS BROADER PLAN DUBBED CUSTOMERS FIRST TO OPEN UP ITS LOCAL PHONE MONOPOLY TO NEW COMPETITORS WE'RE AS POSITIVE ABOUT THE BENEFITS OF THIS PLAN FOR AMERICA AS EVER HE SAID A JUSTICE DEPARTMENT SPOKESMAN DECLINED TO COMMENT SOME CONSUMER ADVOCATES BELIEVE AMERITECH'S PLAN COULD GALVANIZE THE TELECOMMUNICATIONS MARKET ULTIMATELY LETTING THE BABY BELLS TAKE ON AT&T IN LONG DISTANCE AND OFFER MANY TYPES OF NEW SERVICES IT WOULD PROBABLY TRANSLATE INTO LOWER TOLL RATES A HIGHER QUALITY OF SERVICE MORE INNOVATIVE SERVICES BEING ROLLED OUT MORE QUICKLY AND OVERALL A MUCH MORE VIBRANT TELECOMMUNICATIONS MARKETPLACE SAID TERRENCE BARNICH FORMER CHIEF OF THE ILLINOIS COMMERCE COMMISSION WHICH REGULATES AMERITECH SERVICE EARLIER THIS YEAR HE COWROTE A PAPER URGING COMISSIONERS TO ALLOW AMERITECH TO CARRY LONGDISTANCE CALLS WITHIN ILLINOIS IN SOME CASES A BABY BELL COULD WELL OFFER CHEAPER LONGDISTANCE CALLING BECAUSE IT WOULDN'T HAVE TO PAY THE ACCESS CHARGES THAT AT&T AND RIVALS MUST NOW PAY TO THE BABY BELLS SUCH CHARGES WHICH ESSENTIALLY PAY A BABY BELL FOR HANDLING CALLS TO OR FROM CUSTOMERS IN ITS REGION NOW ACCOUNT FOR ABOUT 40 OF THE TOTAL COST OF A LONGDISTANCE CALL AMERITECH'S PLAN WOULD SEEK TO LIFT RESTRICTIONS THAT BAR IT FROM HANDLING ANY CALLS EVEN WITHIN ILLINOIS THAT CROSS A CERTAIN BOUNDARY AND ARE CONSIDERED LONGDISTANCE THOSE RULES FORCE AMERITECH AND THE OTHER BELL COMPANIES TO HAND OFF SUCH CALLS TO A LONGDISTANCE COMPANY TO CARRY ACROSS THE BOUNDARY EVEN THOUGH AMERITECH HAS PHONE LINES CAPABLE OF ROUTING THE CALL ITSELF UNDER THE AMERITECH PROPOSAL THE COMPANY WOULD BE ALLOWED TO HANDLE ALL CALLS EMANATING FROM ILLINOIS WHETHER THEY ARE MADE TO ANOTHER POINT WITHIN THE STATE A NEIGHBORING STATE OR TO ANOTHER COUNTRY BUT AMERITECH WOULD STOP SHORT OF HANDLING LONGDISTANCE HEADING INTO ITS TERRITORY LEAVING SUCH TRAFFIC TO AT&T AND OTHER LONGDISTANCE CARRIERS THAT RESTRICTION APPEARS AIMED AT QUELLING THE OBJECTIONS OF LONGDISTANCE COMPANIES THEY HAVE CONTENDED THAT A BABY BELL ONCE ALLOWED INTO LONG DISTANCE COULD USE ITS LOCAL PHONE MONOPOLY TO HOBBLE THE LONGDISTANCE CALLS TRANSMITTED BY OTHERS INTO ITS TERRITORY IT SEEMS UNLIKELY THAT AMERITECH WOULD BUILD A LONGDISTANCE NETWORK FROM SCRATCH FOR THE TEST INSTEAD IT WOULD SIMPLY LEASE LINES FROM OTHER TELECOMMUNICATIONS COMPANIES AMERITECH HOPES EVENTUALLY TO WIN APPROVAL TO PROVIDE LONGDISTANCE SERVICE IN ALL FIVE STATES IN ITS MARKET THE MOVE BY THE BABY BELLS TO ENTER THE LONGDISTANCE BUSINESS HAS GAINED SOME SUPPORTERS IN WASHINGTON WHERE SEVERAL BILLS GRANTING THEM THE ACCESS ARE PENDING IN CONGRESS BUT AMERITECH'S APPROACH HAS LESS SUPPORT AMONG ITS OWN FORMER SIBLINGS OF THE SIX OTHER BELL COMPANIES ONLY CALIFORNIABASED PACIFIC TELESIS GROUP HAS FULLY EMBRACED THE BROADER CUSTOMERS FIRST PLAN AND NEW YORKBASED NYNEX CORP HAS VOICED LIMITED SUPPORT THE OTHER BABY BELLS GENERALLY HAVE ARGUED THAT THEIR LOCAL MARKETS ALREADY HAVE PLENTY OF COMPETITION A LOT OF COMPANIES SAID AMERITECH'S GOVERNMENTAFFAIRS DIRECTOR SCOTT BONNEY WANT TO GET WITHOUT GIVING 9312070130 931207 MICRON SETTLES LITIGATION BOISE IDAHO MICRON TECHNOLOGY INC SAID IT SETTLED PATENTINFRINGEMENT LITIGATION BROUGHT AGAINST IT BY THORN EMI NORTH AMERICA INC ON TERMS WHICH EACH COMPANY CONSIDERS SATISFACTORY MICRON A SEMICONDUCTOR MAKER DIDN'T DISCLOSE TERMS OF THE SETTLEMENT YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MICRON FELL 150 OR 31 TO CLOSE AT 4650 9312070129 931207 WHO'S NEWS KINDERCARE LEARNING CENTERS INC KINDERCARE LEARNING CENTERS INC MONTGOMERY ALA JAMES H GARDNER CHIEF OPERATING OFFICER FOR THIS CHILDCARE PROVIDER HAS RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY SAID MR GARDNER 49 YEARS OLD WAS ALSO A MEMBER OF KINDERCARE'S BOARD A SUCCESSOR HASN'T YET BEEN NAMED 9312070128 931207 CREDIT RATINGS DAIWA'S DEBT RATINGS LOWERED BY MOODY'S QUALITY OF ASSETS CITED NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED ITS RATINGS FOR DAIWA BANK LTD'S LONGTERM AND SHORTTERM DEBT AND THAT OF ITS UNITS CITING DETERIORATING ASSET QUALITY AND A RECENT ACQUISITION THE RATING OF DAIWA'S LONGTERM DEBT WAS LOWERED TO SINGLEA3 FROM SINGLEA1 AFFECTING APPROXIMATELY 14 BILLION OF DEBT MOODY'S ALSO LOWERED DAIWA'S SHORTTERM DEBT RATING TO PRIME2 FROM PRIME1 DAIWA'S GROWING USE OF HIGHCOST FUNDS BORROWED FROM TRUST ACCOUNTS TO MAINTAIN COMPETITIVE YIELDS ON ITS TRUST PRODUCTS HAS WEAKENED ITS INTEREST MARGIN MOODY'S SAID WHILE OTHER OPERATIONS OF THE MAJOR COMMERCIAL BANK REMAIN VULNERABLE TO VOLATILE MARKET CONDITIONS AND DAIWA'S RECENT ACQUISITION OF OSAKA JAPANBASED COSMO SECURITIES CO A SECURITIES BROKERAGE HOUSE ALSO WEAKENS ITS OVERALL EARNINGS OUTLOOK MOODY'S SAID ULTIMATE RESOLUTION OF DAIWA'S ASSETQUALITY PROBLEM WILL LIKELY TAKE SEVERAL YEARS OR EVEN MORE MOODY'S SAID ALTHOUGH THE BANK'S STRONG OPERATING FRANCHISE IN OSAKA AND ITS ESTABLISHED POSITION IN CORPORATE PENSION MANAGEMENT SHOULD HELP IT MEET FUTURE CHALLENGES DAIWA BANK HAD COMBINED BANKING AND TRUST ACCOUNT ASSETS OF ABOUT 325 BILLION AS OF SEPT 30 9312070127 931207 POLITICS & POLICY FIREBREATHING UNIONIST BYWATER HAS BECOME A HERO FOR DISAFFECTED LOSERS OF NAFTA BATTLE BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL BOHEMIA NY LABOR MAY HAVE LOST THE BATTLE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT BUT THE RANKANDFILE GAINED A NEW HERO 73YEAROLD BILL BYWATER HE IS THE FIERY UNION LEADER WHO STOLE THE STAGE DURING AN ANTINAFTA BRIEFING IN AUGUST TO STARE INTO TELEVISION CAMERAS AND SHOUT A PLEDGE THAT LABOR WOULD SEEK POLITICAL REVENGE AGAINST LAWMAKERS WHO VOTED FOR THE TRADE PACT I SAID THE HELL WITH IT' HE SAYS I WAS ANGRY AND I WANTED PEOPLE TO KNOW IT NOW MR BYWATER HAS BECOME A SYMBOL FOR AN ARMY OF DISAFFECTED AMERICANS WHO LOST THE NAFTA BATTLE AND ARE UNCERTAIN OF WHERE TO CHANNEL THEIR ANGER NOT SINCE THE DAYS OF WILLIAM WINPISINGER WHO RULED THE INTERNATIONAL ASSOCIATION OF MACHINISTS IN THE 1970S HAS A LABOR LEADER BEEN SO FLAMBOYANTLY OUTSPOKEN HIS CRITICS CLAIM MR BYWATER'S SLASHANDBURN TACTICS ARE OUTDATED ALTHOUGH MANY UNIONISTS CELEBRATE HIS VIVIFICATION OF LABOR POLITICAL MIGHT HE'S GOT THE ORIGINAL LABOR MILITANCY SAYS HOWARD SAMUEL A RETIRED TOP AFLCIO OFFICIAL WHO HAS WORKED WITH MR BYWATER SINCE THE 1960S NOT EVERY LABOR LEADER HAS IT HE SOUNDS THE ALARM BELL THAT CAN HELP REKINDLE LABOR'S FIGHTING SPIRIT SAYS MR SAMUEL HEAD OF A LABORINDUSTRY TRADE COALITION THAT INCLUDES MR BYWATER MR BYWATER IS THE PRESIDENT OF ONE OF THE NATION'S SHRINKING UNIONS THE INTERNATIONAL UNION OF ELECTRONIC ELECTRICAL SALARIED MACHINE AND FURNITURE WORKERS AS THE US TELEVISIONMANUFACTURING INDUSTRY ERODED UNDER FOREIGN COMPETITION HIS UNION HAS DECLINED TO ABOUT 150000 MEMBERS FROM 350000 IN 1968 HE BECAME ONE OF THE FIRST UNION LEADERS PUSHING LABOR AWAY FROM ITS TRADITIONAL FREETRADE POSITION DEMOCRATIC SEN TOM HARKIN OF IOWA WHO VOTED FOR NAFTA HAS CALLED MR BYWATER THE PAUL REVERE OF TRADE HE UNDERSTANDS FIRSTHAND WHAT'S HAPPENING TO US INDUSTRY HE'S TOUGH THE SAME WAY GENERAL ELECTRIC CO'S JACK WELCH IS TOUGH AS A CEO SAYS PAT CHOATE A WASHINGTON ECONOMIST WHO WAS ON THE SAME SIDE AS MR BYWATER WHEN HE TEAMED UP WITH TEXAS BILLIONAIRE ROSS PEROT TO FIGHT NAFTA HE BRINGS TO THIS SOMETHING LABOR HASN'T DONE MUCH IN THE PAST AND THAT'S GETEVEN POLITICS IN THIS KIND OF POLITICS GETTING EVEN IS A LEGITIMATE EXERCISE OF POWER BUT MR BYWATER ISN'T LIKELY TO ASSUME PERSONAL COMMAND OF COMING UNION BATTLES ON OTHER ISSUES SUCH AS HEALTHCARE REFORM NAFTA WAS A GUT ISSUE FOR THE IUE AND MR BYWATER HAS NEVER BEEN A MOVER AND SHAKER IN ISSUES OTHER THAN TRADE HE'S MOST LIKELY IN HIS LAST TERM AS HEAD OF HIS UNION THOUGH HE SAYS HE WON'T DECIDE UNTIL 1996 WHEN HIS TERM EXPIRES LABOR EXPERTS ALSO ARGUE HIS HARDBALL TACTICS DON'T WORK ANYMORE AND THAT OTHER UNIONS ARE LIKELY TO DISTANCE THEMSELVES FROM HIS THREATS PARTICULARLY AS NEW ISSUES SURFACE AND THE NAFTA VOTE GETS FURTHER IN THE PAST THIS ISN'T A STYLE THAT WORKS IT'S OLDFASHIONED SAYS SAR LEVITAN A LABORRELATIONS EXPERT AT GEORGE WASHINGTON UNIVERSITY AND IT ISN'T A STYLE THAT WILL DO THE LABOR MOVEMENT MUCH GOOD LABOR CANNOT ISOLATE ITSELF AND FOR THE MOST PART I EXPECT THEY WILL GET BACK INTO THE FOLD IN MANY WAYS MR BYWATER IS A THROWBACK TO THE TOUGH IMAGE OF LABOR'S PAST LEADERS WITH HIS SCOWL TWICEBROKEN NOSE AND STREAM OF DOUBLE NEGATIVES AND PUTDOWNS HE CALLS JIM JONTZ HEAD OF THE ANTINAFTA CITIZENS TRADE CAMPAIGN A SISSY FOR NOT BEING MORE AGGRESSIVE IN CHARTING THE CAMPAIGN HE IS A SELFPROCLAIMED SOCIALIST WHO SEES A GREAT INJUSTICE HAPPENING TO THE RANKANDFILE AT THE HANDS OF MULTINATIONAL CORPORATIONS THE UNION LEADER IS A MAN WHOSE PAST UNIQUELY MOLDED HIM FOR HIS CURRENT ENDEAVORS A CHILD OF THE DEPRESSION MR BYWATER MOVED OFTEN WHILE HIS FATHER LOOKED FOR WORK LEAVING TRENTON NJ WHERE HE WAS BORN AND THEN HOPSCOTCHING AROUND QUEENS WHERE THE FAMILY LANDED ONE JOB AS JANITORS FOR A BUILDING I HAD TO LEAVE MY DOG SPARKY BEHIND IT KILLED ME HE RECALLS WE WERE A LITTLE BETTER THAN POOR THEN POOR AND THEN VERY POOR PRIVATELY HE REVEALS CERTAIN CHARMS FEW SEE IN THE MIDDLE OF A MEETING HE'LL ASK YOU DO YOU KNOW WHAT MY MOTHER USED TO CALL ME' SAYS HIS 67YEAROLD EXECUTIVE ASSISTANT JOAN MAN TAKING OFF HER BIG RHINESTONE GLASSES TO ROLL HER EYES WE'VE HEARD IT A THOUSAND TIMES BUT WE SORT OF LOOK AT EACH OTHER DROP OUR EYES AND SAY NO BILL' AND HE'LL SAY SWEET WILLIAM' AND HE'LL THINK IT'S JUST THE FUNNIEST THING TO UNDERSTAND WHY THE BATTLE OVER NAFTA MIGHT NOT BE OVER WATCH MR BYWATER WILDLY FLAIL HIS HANDS AND SCREAM IN HIS FAMILY ROOM HERE AS HE VOWS TO PUSH ELECTIONYEAR ATTACKS ON UNIONBACKED POLITICIANS WHO VOTED FOR THE TRADE PACT THEY'RE JERKS HE SAYS HE WON'T NAME THOSE HOUSE MEMBERS HE WANTS TO TARGET SAYING THAT WILL BE PLOTTED DURING MEETINGS SCHEDULED FOR JANUARY WITH AFLCIO OFFICIALS BUT SOME LIKELY TARGETS ARE DEMOCRATS TOM SAWYER OF OHIO AND NITA LOWEY OF NEW YORK I FEEL LIKE I'VE BEEN MADE THE NATIONAL POSTER CHILD FOR THE TOUGH POLITICAL DECISION SAYS REP SAWYER WHO INSISTS THE GETEVEN STRATEGY DOESN'T WORK WITH ME THE CONGRESSMAN WHOSE DISTRICT INCLUDES THE UNITED RUBBER WORKERS' HEADQUARTERS IS CONVINCED HIS NAFTA STANCE COST HIM I PROBABLY BOUGHT MYSELF A PRIMARY CHALLENGE REP LOWEY HOPES TO BUILD BRIDGES WITH UNION LEADERS WITH LEGISLATION ON WORKER SAFETY AMONG OTHER THINGS ONLY TIME WILL TELL IF UNION LEADERS HOLD A GRUDGE AGAINST HER SHE SAYS I WOULD HOPE UNIONS WOULD LET BYGONES BE BYGONES MR BYWATER SAYS HE PERSUADED HALF A DOZEN LAWMAKERS TO VOTE AGAINST NAFTA THREATENING TWO THE PRESIDENT WAS PUTTING PRESSURE ON THEM I SAID LET'S SEE IF THE PRESIDENT CAN HELP YOU ON ELECTION DAY' HE SAYS ONE REPUBLICAN IN NEW JERSEY INDICATED HE WOULD GO OUR WAY BUT HE DIDN'T WE'LL GO AFTER HIM REP BOB FRANKS A NEW JERSEY REPUBLICAN HEAVILY WOOED BY UNIONS INCLUDING MR BYWATER'S ACKNOWLEDGES HE'S PROBABLY THE ONE HE SAYS HE HASN'T BEEN DIRECTLY THREATENED BUT EVEN THE BROADBASED THREAT DOESN'T HOLD MUSTER HE CLAIMS IT BACKFIRED MR FRANKS SAYS THOSE TO WHOM THE TACTICS WERE EMPLOYED WENT THE OTHER WAY MR BYWATER ALSO HAS HAD CONFRONTATIONS WITH A HOST OF CLINTON ADMINISTRATION OFFICIALS THESE INCLUDED HEATED ARGUMENTS OVER NAFTA WITH LABOR SECRETARY ROBERT REICH AND US TRADE REPRESENTATIVE MICKEY KANTOR MR BYWATER LEFT A DISTINCT IMPRESSION WITH AN INYOURFACE TO A HIGH GOVERNMENT OFFICIAL SAYS MR HOFMAN BUT WITH LITTLE REAL EFFECT MY IMPRESSION IS THAT THIS IS HOW THEY OPERATED IN THE '30S '40S AND '50S BUT IT DIDN'T MEAN HE WAS GOING TO SEE THE SECRETARY OF LABOR ADOPT HIS SENSE OF THE WORLD THE LABORINDUSTRY COALITION'S MR SAMUEL ACKNOWLEDGES THAT MR BYWATER'S MESSAGE DOESN'T SIT WELL WITH SOME WHAT THE TYPICAL WORKER RESPONDS TO IS NOT WHAT THE TYPICAL INTELLECTUAL RESPONDS TO HE SAYS INTELLECTUALS DON'T RESPOND TO THE FIERY APPROACH OF BILL BYWATER BUT WHILE MR BYWATER CAN BE INTIMIDATING HE HEADS A UNION THAT DOESN'T PUMP THAT MUCH MONEY INTO POLITICAL CAMPAIGNS IT CONTRIBUTED ONLY ABOUT 129000 BETWEEN 1979 AND THIS SUMMER TO PRESIDENTIAL AND CONGRESSIONAL RACES WHAT THE UNION DOESN'T HAVE IN POLITICAL CONTRIBUTIONS MR BYWATER SAYS IT WILL MAKE UP FOR WITH MEMBERS WHO ARE WILLING TO CANVASS A DISTRICT HE SAYS THE UNION WILL TEAM UP WITH OTHER INDUSTRIAL UNIONS SUCH AS THE UNITED RUBBER WORKERS BUT EVEN THEY ARE A SHRINKING UNION MR BYWATER IS UNDETERRED BY HIS DETRACTORS THIS ISN'T OVER HE SAYS WITH A STEELY GAZE AND CLENCHED TEETH 9312070126 931207 MARKETING GOING FOR THE GOLD MERCHANDISERS AND RETAILERS PROMOTE THE OLYMPICS TWO YEARS IN ADVANCE BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA MOVE OVER BARNEY IZZY IS COMING STORE SHELVES THAT TODAY ARE SAGGING UNDER THE WEIGHT OF PURPLE DINOSAURS MAY SOON BE STUFFED WITH BLUE IZZIES AND OTHER PRODUCTS LINKED TO THE 1996 SUMMER OLYMPICS IN ATLANTA WHILE THOSE GAMES ARE STILL SOME TWO AND A HALF YEARS AWAY OFFICIALS HERE ARE TAKING ADVANTAGE OF THE CHRISTMAS SHOPPING SEASON AS WELL AS INTEREST IN THE WINTER OLYMPICS IN FEBRUARY TO BEGIN THEIR OWN PUSH FOR THE GOLD WE'RE STARTING MUCH EARLIER THAN EVER BEFORE SAYS ROBERT E HOLLANDER VICE PRESIDENT OF LICENSING FOR ATLANTA'S OLYMPIC COMMITTEE ABOUT 1 BILLION IN SALES IS DEFINITELY ACHIEVABLE HE ADDS REACHING THAT MARK MAY NOT BE EASY THE RATE OF GROWTH IN THE 12 BILLION INDUSTRY FOR LICENSED SPORTS MERCHANDISE HAS SLOWED TO THE SINGLE DIGITS FROM AS MUCH AS 18 A YEAR IN THE MID1980S ACCORDING TO THE LICENSING LETTER A MONTHLY TRADE PUBLICATION BASED IN BROOKLYN NY THE COMPETITION MEANWHILE IS FIERCE AS RECENTLY AS 1984 OLYMPIC OFFICIALS IN LOS ANGELES HAD A GOOD CHUNK OF THE MARKET TO THEMSELVES THESE DAYS OLYMPIC GOODS ENTER A MARKET ALREADY GLUTTED WITH PROFESSIONAL BASKETBALL FOOTBALL BASEBALL AND HOCKEY PARAPHERNALIA WHICH TOGETHER ACCOUNT FOR ALMOST TWOTHIRDS OF SPORTSMERCHANDISE SALES THE TIMING IS TRICKY SAYS KAREN RAUGUST EDITOR OF THE LICENSING LETTER ATLANTA HAS TO SUSTAIN INTEREST IN A 16DAY EVENT OVER THE NEXT TWO AND A HALF YEARS TRADITIONALLY OLYMPIC CITIES SELL THE BULK OF THEIR MERCHANDISE IN THE MONTHS PRECEDING THE GAMES TO KEEP BOTH RETAILERS AND CONSUMERS FROM GETTING BORED YOU CAN'T PUT JUST THE OLYMPIC RINGS OUT THERE MR HOLLANDER SAYS THE COMMITTEE AND ITS LICENSEES PLAN A FRESH COLLECTION OF OLYMPIC MERCHANDISE EVERY SIX MONTHS OR SO WITH NEW DESIGNS LOGOS AND COLORS FIELDCREST CANNON INC FOR INSTANCE HOPES TO SHIP CLOSE TO 100 MILLION IN SHEETS PILLOW CASES COMFORTERS BEACH TOWELS ROBES AND THE LIKE ALL BEARING OLYMPIC MARKS SAYS JACK O'GRADY VICE PRESIDENT OF THE EDEN NC TEXTILE CONCERN BUT THE LOOK WILL EVOLVE PRODUCTS WITH ATLANTA'S OLYMPIC TORCH WILL GIVE WAY TO PRODUCTS FEATURING SAY ARTWORK FROM PREVIOUS OLYMPICS AT SARA LEE CORP WHOSE CHAMPION AND HANES APPAREL DIVISIONS PLAN TO SELL HUNDREDS OF MILLIONS OF DOLLARS OF ATLANTA MERCHANDISE ACCORDING TO LISA HUDSPETH DIRECTOR OF OLYMPIC LICENSING A RECORD BREAKER COLLECTION IS PLANNED ILLUSTRATIONS OF ATHLETES SUCH AS CARL LEWIS AND MARK SPITZ ALONG WITH THEIR OLYMPIC MEDALS AND RECORDS WILL APPEAR ON SHIRTS AND SWEATSHIRTS OTHER BLUEPRINTS CALL FOR APPAREL AIMED AT FANS OF PARTICULAR OLYMPIC SPORTS LIKE CYCLING OR TENNIS OR AT PATRONS OF PARTICULAR OLYMPIC VENUES LIKE SAVANNAH GA THE SITE OF THE 1996 YACHTING COMPETITION EVEN IZZY ATLANTA'S MUCHMALIGNED MASCOT IS EXPECTED TO CONTRIBUTE SUBSTANTIALLY TO THE BOTTOM LINE TO SPARK INTEREST AMONG CHILDREN IZZY WILL STAR IN AT LEAST THREE HALFHOUR ANIMATED SPECIALS ON NETWORK TELEVISION BETWEEN NOW AND THE 1996 GAMES BOB SOLOMON CHAIRMAN AND CHIEF EXECUTIVE OF DAKIN INC A GIFT AND LICENSING COMPANY IN WOODLAND HILLS CALIF SAYS HIS COMPANY ALREADY IS PRODUCING SEVERAL SIZES OF A STUFFED IZZY DOLL RANGING IN PRICE FROM 5 TO 50 OFFICIALS ON ATLANTA'S OLYMPIC COMMITTEE NOTE THAT MERCHANDISE SALES SINCE SEPTEMBER 1990 WHEN ATLANTA WAS AWARDED THE GAMES ALREADY EXCEED 75 MILLION THAT COMPARES WITH ABOUT 100 MILLION IN TOTAL SALES FOR THE 1984 OLYMPICS THE BULK OF THOSE SALES NOT SURPRISINGLY HAS COME FROM STORES IN THE SOUTHEAST BUT MACY'S GIANT HERALD SQUARE STORE IN NEW YORK CITY IS DOING A BRISK BUSINESS IN SWEATSHIRTS AND MUGS WITH ATLANTA'S OLYMPIC LOGO AS ARE SEATTLE'S BON MARCHE AND CHICAGO'S CARSON PIRIE & SCOTT CALDOR CORP WITH 150 STORES IN THE NORTHEAST HAS JUST BEGUN SELLING ATLANTA MERCHANDISE IN ITS OUTLETS AND HUNDREDS OF OTHER STORES ACROSS THE COUNTRY ARE EXPECTED TO START STOCKING ATLANTA MERCHANDISE ONCE THE WINTER GAMES END WE'RE READY TO JUMP ON THE BANDWAGON SAYS MATTHEW SUDHALTER A DIVISIONAL MERCHANDISE MANAGER FOR STUARTS DEPARTMENT STORES WITH 20 SITES IN NEW ENGLAND THERE SHOULD BE PLENTY OF INTEREST WHY THE EARLY PUSH ATLANTA NEEDS A STAGGERING 159 BILLION TO STAGE THE GAMES ALL OF WHICH MUST BE RAISED FROM PRIVATE SOURCES THE SALE OF TELEVISION BROADCAST RIGHTS TICKETS AND CORPORATE SPONSORSHIPS WILL YIELD A FIXED NUMBER OF DOLLARS SAYS GARY STOKAN DIRECTOR OF THE CHAMPIONSHIP GROUP A SPORTSMARKETING FIRM IN ATLANTA BUT LICENSING HE SAYS IS THE INCOME STREAM THAT'S OPENENDED INDEED LICENSED PRODUCTS COULD ACCOUNT FOR AS MUCH AS 8 OF THE COST OF THE GAMES SAYS THE ATLANTA COMMITTEE'S MR HOLLANDER TO APPROACH THAT FIGURE ATLANTA LIKE OLYMPIC CITIES IN PREVIOUS YEARS IS TAKING A LESSISMORE APPROACH RATHER THAN GIVE HUNDREDS OF COMPANIES THE RIGHT TO MANUFACTURE OLYMPIC MERCHANDISE FEWER THAN 100 WILL BE BROUGHT ABOARD SAYS MR HOLLANDER TO DATE ABOUT 25 ARE SIGNED IN THAT WAY THE GAMES' ORGANIZERS HOPE TO AVOID A GLUT OF SIMILARLOOKING PRODUCTS WHILE MANUFACTURERS SAY THEY LIKE THE PACE OF ATLANTA'S PROGRAM THEY ARE LESS THRILLED WITH THE STIFF GUARANTEES AND ROYALTIES THE OLYMPIC COMMITTEE IS DEMANDING OF AND GETTING FROM POTENTIAL LICENSEES MOST COMPANIES ARE PAYING ROYALTIES OF 15 TO 20 OR ABOUT TWICE WHAT ORGANIZATIONS LIKE THE NATIONAL BASKETBALL ASSOCIATION RECEIVE SARA LEE MEANWHILE HAS AGREED TO GUARANTEE ATLANTA 20 MILLION REGARDLESS OF HOW WELL THE COMPANY'S SPORTSWEAR SELLS THESE NUMBERS ARE HIGHER THAN YOU'RE USED TO SAYS ROD S HINTON GENERAL MANAGER OF MERCHANDISING AND CREATIVE DESIGN AT LOGO 7 AN OLYMPIC LICENSEE AND MAKER OF SPORTSWEAR IN INDIANAPOLIS AT THE SAME TIME HE NOTES THAT ATLANTA HAS DONE A GOOD JOB OF LIMITING THE NUMBER OF LICENSEES AND THUS COMPETITORS THE THING YOU DON'T WANT TO SEE IS HIGH ROYALTIES AND GUARANTEES WITH EVERYONE IN THE WORLD IN ON IT HOW WILL ATLANTA FARE MS RAUGUST EDITOR OF THE LICENSING LETTER NOTES THAT ANY NEW ENTRY IN THE SPORTSMERCHANDISE BUSINESS IS TAKING A RISK TO DATE HOWEVER RETAILERS ARE ACCEPTING ATLANTA'S PRODUCTS AND LICENSEES ARE GETTING BEHIND THE LAUNCH SHE SAYS THEY'RE OFF TO A GOOD START 9312070125 931207 RAWSTEEL PRODUCTION ROSE 22 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 22 LAST WEEK TO 1856000 TONS FROM 1816000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 87 FROM THE 1707000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 882 OF ITS CAPABILITY LAST WEEK COMPARED WITH 863 THE PREVIOUS WEEK AND 79 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9312070123 931207 MERRILL LYNCH STOCK REPURCHASE NEW YORK MERRILL LYNCH & CO SAID DIRECTORS INCREASED BY 15 MILLION SHARES THE BROKERAGE AND INVESTMENT COMPANY'S AUTHORITY TO REPURCHASE ITS COMMON SHARES ABOUT ONE MILLION SHARES REMAIN AUTHORIZED FOR PURCHASE UNDER PREVIOUS ACTIONS SHARES WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING EMPLOYEE BENEFIT PLANS 9312070122 931207 WORLD MARKETS TOKYO STOCKS PLUNGE 36 AFTER JAPAN'S LEADERS FALTER ON QUICK ACTION TO FIND ECONOMIC HEALTH A WALL STREET JOURNAL ROUNDUP TOKYO SHARES PLUNGED 36 MONDAY LOGGING THIS YEAR'S SECONDDEEPEST POINT LOSS FOR THE BENCHMARK INDEX ON DISAPPOINTMENT ABOUT THE JAPANESE GOVERNMENT'S FALTERING COMMITMENT TO ACT QUICKLY TO BATTLE THE RECESSION LONDON EQUITIES HAD A MIXED PERFORMANCE IN DEALINGS DOMINATED BY TELEVISIONSECTOR TAKEOVER ACTIVITY HONG KONG STOCKS RALLIED AS INVESTORS FROM ABROAD BOUGHT AGGRESSIVELY ON BULLISHNESS ABOUT THE MARKET'S LONGTERM OUTLOOK AND TAIPEI SHARES' BULL RUN CONTINUED IN ANTICIPATION OF HUGE FLOWS OF CAPITAL INTO THE BOURSE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10934 DOWN 015 REFLECTING LOWER ASIA/PACIFIC MARKETS AND HIGHER AMERICAN AND EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 18909 UP 731 OR 4 WITH KUMPULAN GUTHRIE OF MALAYSIA POSTING AN 11 GAIN IN ITS LOCAL CURRENCY SEMICONDUCTOR STOCKS TRAILED AT 17786 DOWN 911 OR 49 WITH NIPPON CARBON OF JAPAN SLIDING 79 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH EDGED UP 060 POINT FRIDAY SANK 61897 TO 1684038 AFTER PLUMMETING 676 POINTS IN INTRADAY TRADING ON TUESDAY IN TOKYO THE NIKKEI ROSE 6011 POINTS TO CLOSE THE MORNING SESSION AT 1690049 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN FROM 2718 MILLION SHARES IN THE PREVIOUS SESSION LOSERS OVERWHELMED GAINERS 102074 AS THE PUMMELING CUT ACROSS MOST SECTORS THAT HAD RECOUPED RECENT LOSSES LAST WEEK THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 501 POINTS FRIDAY LOST 4625 OR 32 TO 141383 THE DEBACLE WAS A RESULT PRIMARILY OF ARBITRAGE SELLING AS MOST PARTICIPANTS REMAINED ON THE SIDELINES HOLDING ON TO SLIM HOPES THAT THE GOVERNMENT MUST TAKE A MORE AGGRESSIVE STANCE ON AN ECONOMIC FIX SOON BUYING INTEREST ALSO REMAINED PARALYZED AHEAD OF A REPORT EXPECTED THIS WEEK ON JAPAN'S THIRDQUARTER GROSS NATIONAL PRODUCT FRIDAY'S RELEASE OF THE QUARTERLY BUSINESSSENTIMENT SURVEY BY THE BANK OF JAPAN AND FRIDAY'S SPECIAL QUOTATION TO SETTLE PRICES FOR DECEMBER NIKKEI FUTURES CONTRACTS MARKET SENTIMENT WORSENED BADLY SINCE LAST WEEK AS MEMBERS OF PRIME MINISTER MORIHIRO HOSOKAWA'S GOVERNMENT REPEATEDLY DISTANCED THEMSELVES FROM LEGISLATORS' PLEDGE TO UNVEIL A NEW ECONOMIC STIMULUS PACKAGE AS EARLY AS TUESDAY A PROSPECT THAT PUSHED STOCKS UP SHARPLY LAST WEEK TO INTERRUPT A LONG AND DEEP SLIDE FOR THE STOCK MARKET BUT CABINET MEMBERS FRIDAY DENIED THAT THE GOVERMENT INTENDED TO MOVE QUICKLY AND MR HOSOKAWA SPEAKING MONDAY AT THE DIET OR PARLIAMENT ECHOED THOSE SENTIMENTS SAYING A GOVERNMENT PRIORITY REMAINS THE PASSAGE OF PREVIOUSLY ANNOUNCED STIMULUS MEASURES INCLUDING A SUPPLEMENTARY BUDGET THE CABINET ADOPTED LAST TUESDAY THE OPPOSITION LIBERAL DEMOCRATIC PARTY HAS ATTACKED THAT BUDGET AS TOO PUNY TO DO ANY GOOD IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 31 POINTS TO 32373 BUT THE FT 30STOCK INDEX FELL 102 POINTS TO 24384 VOLUME WAS 6019 MILLION SHARES COMPARED WITH 7491 MILLION SHARES IN THE PREVIOUS SESSION AN ACQUISITION BID IN THE TV SECTOR WHICH HAS HAD A RUNUP RECENTLY IN ANTICIPATION OF MAJOR MERGERS SENT THE STOCKS BOTH UP AND DOWN THE LATTER ON DISAPPOINTMENT ABOUT A BID PRICE THAT PROMPTED QUESTIONS ABOUT THE VALUE OF TAKEOVER TARGETS MEANWHILE EXPECTATIONS RESURFACED FOR ANOTHER BRITISH LENDINGRATE CUT BY EARLY NEXT MONTH AND THIS BOOSTED BANKING SHARES AND RELIEF THAT BRITAIN'S BUDGET ANNOUNCEMENT LAST WEEK DIDN'T SPARK ANY SERIOUS REBELLION AGAINST THE GOVERNMENT KEPT FOREIGN INVESTORS IN THE MARKET AS BUYERS IN FRANKFURT SHARES SLIPPED ENDING NEAR THE DAY'S LOWS AFTER FAILING TO HANG ON TO EARLY GAINS THE DAX 30STOCK INDEX EASED 181 POINTS TO 211880 THE WEEKEND DEFEAT OF GERMAN CHANCELLOR HELMUT KOHL'S PARTY IN A STATE ELECTION DIDN'T AFFECT THE MARKET PRICES WERE PRESSURED BY A WEAK OIL SECTOR HURT BY DECLINING WORLD OIL PRICES IN PARIS PRICES ENDED LITTLE CHANGED AS THE MARKET AWAITED WORD ON NEGOTIATIONS FOR A WORLD TRADELIBERALIZATION ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE FRANCE HAS BEEN INTRANSIGENT ON AGRICULTURAL ISSUES POSING AN OBSTACLE TO AGREEMENT IN AMSTERDAM STOCKS' MODEST YEAREND RALLY CONTINUED AS PRICES ROSE BROADLY ON ENTHUSIASM ABOUT GAINS AT EXCHANGES IN THE US LONDON AND ELSEWHERE IN EUROPE IN MILAN EQUITIES ROSE ON RELIEF ABOUT MINOR DAMAGE TO THE MARKET FROM RESULTS OF SUNDAY'S ELECTIONS IN SEVERAL ITALIAN CITIES AND ON A POSITIVE RECEPTION TO A PUBLIC OFFERING OF A PRIVATIZATION ISSUE IN BRUSSELS SHARES CLIMBED 1 TO POST A RECORD FOR THE SECOND CONSECUTIVE SESSION IN DEALINGS BOLSTERED BY DERIVATIVESRELATED TRADING AND A STRONGER BELGIAN FRANC IN ZURICH STOCKS SURVIVED A LATE ASSAULT OF PROFITTAKING TO CLOSE MARGINALLY HIGHER IN MEXICO CITY EQUITIES SOARED 27 AS THE MARKET SCORED ITS THIRD CONSECUTIVE RECORD HIGH ON OPTIMISM ABOUT MEXICAN ECONOMIC GROWTH PROSPECTS NEXT YEAR UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT STOCKS ALSO GOT A LIFT FROM WEEKEND COMMENTS BY US VICE PRESIDENT AL GORE THAT MEXICO WOULD MAKE A MAJOR ANNOUNCEMENT THIS WEEK REGARDING NAFTA FROM A RUMOR THAT TWO US RATING CONCERNS COULD SOON GIVE MEXICAN SOVERIGN DEBT AN INVESTMENTGRADE RATING AND FROM AN EXPECTED MOVE BY MORGAN STANLEY STRATEGIST BARTON BIGGS TO RAISE MEXICO'S WEIGHTING TO 13 FROM 10 IN HIS MODEL EMERGINGMARKETS PORTFOLIO IN SYDNEY SHARE PRICES ROSE MODERATELY RESISTING PRESSURE FROM THE TOKYO MARKET'S NOSE DIVE INVESTORS ANTICIPATED A GATT RESOLUTION FAVORABLE TO AUSTRALIA AND OVERSEAS INVESTORS' BUYING HELPED SUPPORT THE BOURSE IN HONG KONG THE MARKET ALSO WASN'T FAZED BY THE TOKYO LOSSES OR BY SINOBRITISH RELATIONS SOURED BY INTRANSIGENCE IN TALKS ON THE BRITISH COLONY'S POLITICAL FUTURE BEFORE IT REVERTS TO CHINA IN 1997 STOCK PRICES SURGED 34 TO THEIR HIGHEST LEVELS IN ABOUT THREE WEEKS BOLSTERED BY A FLURRY OF BUYING AND AN INITIAL PUBLIC OFFERING AND CHARGED BY A STRONG FUTURES MARKET AN APPROACH BY CHINA AND BRITAIN TO SEPARATE POLITICAL FROM ECONOMIC ISSUES STIMULATED RENEWED BUYING BY OVERSEAS INVESTORS ESPECIALLY THOSE IN THE US AND EUROPE WHO BELIEVE THE HONG KONG ECONOMY WILL REMAIN INTACT UNDER CHINESE SOVEREIGNTY IN TAIPEI IN THEIR FIFTH CONSECUTIVE ADVANCE EQUITIES JUMPED 22 TO A SEVENMONTH HIGH ON ANTICIPATION OF ABOUT 3 BILLION OF CAPITAL FLOWING INTO THE STOCK MARKET IN THE FIRST QUARTER FROM FOREIGN INSTITUTIONS TAIWAN FUNDS AND NEW BANKS AND ON EASING OF RESTRICTIONS ON FOREIGN INVESTMENT IN TAIWAN THE MARKET HAS CLIMBED 81 SINCE LAST WEDNESDAY 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 9312070120 931207 WHO'S NEWS PLYGEM TAPS OFFICIAL FROM TENNECO UNIT AS OPERATING CHIEF NEW YORK PLYGEM INDUSTRIES INC NAMED A TOP TENNECO INC EXECUTIVE TO THE NEWLY CREATED POSITION OF PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE JAN 1 MONTE R HAYMON 56 YEARS OLD SAID HE TOOK EARLY RETIREMENT AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TENNECO'S PACKAGING CORP OF AMERICA UNIT FOR AN EXCITING SITUATION AT PLYGEM A SUPPLIER OF WINDOWS DOORS VINYL SIDING AND OTHER PRODUCTS FOR HOME IMPROVEMENT WITH REVENUE OF 700 MILLION BETWEEN 1982 AND 1992 DURING MR HAYMON'S TENURE PACKAGING CORP'S SALES TRIPLED TO 21 BILLION A PLYGEM SPOKESWOMAN SAID THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE JEFFREY S SILVERMAN 48 HAS BEEN HANDLING THE DUTIES OF CHIEF OPERATING OFFICER WHICH MR HAYMON WILL ASSUME IN THE NEW POST TENNECO HOUSTON NAMED PAUL L STECKO FORMER VICE PRESIDENT AND GENERAL MANAGER AT INTERNATIONAL PAPER CO TO SUCCEED MR HAYMON MR STECKO 49 OVERSAW THREE OF INTERNATIONAL PAPER'S BUSINESSES 9312070119 931207 WHO'S NEWS ALLEGHENY POWER SYSTEM INC ALLEGHENY POWER SYSTEM INC NEW YORK KLAUS BERGMAN 62 YEARS OLD WAS ELECTED CHAIRMAN OF THIS UTILITY HOLDING COMPANY EFFECTIVE JAN 1 THE POST HAD BEEN VACANT SINCE THE RETIREMENT OF CHARLES B FINCH IN APRIL 1992 MR BERGMAN CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALLEGHENY AND CHAIRMAN AND CEO OF ITS PRINCIPAL SUBSIDIARIES INCLUDING POTOMAC EDISON CO MONONGAHELA POWER CO AND WEST PENN POWER CO 9312070117 931207 POLITICS & POLICY TWO WHITE HOUSE AIDES DEPART FOR PRIVATE SECTOR WASHINGTON HOWARD PASTER WHO RECENTLY RESIGNED AS PRESIDENT CLINTON'S TOP CONGRESSIONAL LOBBYIST HAS BEEN APPOINTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HILL & KNOWLTON INC MR PASTER 48 YEARS OLD WILL JOIN THE PUBLICRELATIONS UNIT OF WPP GROUP PLC JAN 1 BEFORE JOINING MR CLINTON'S STAFF THIS YEAR MR PASTER SERVED BRIEFLY AS HEAD OF HILL & KNOWLTON'S WASHINGTON OFFICE ANOTHER WHITE HOUSE AIDE WHO IS LEAVING FOR THE PRIVATE SECTOR DEPUTY CHIEF OF STAFF ROY NEEL AS EXPECTED HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE US TELEPHONE ASSOCIATION THE TRADE GROUP FOR THE REGIONAL AND LOCAL TELEPHONE COMPANIES MR NEEL ALSO 48 WILL JOIN THE LOBBYING GROUP FULL TIME MARCH 1 MEANTIME HE WILL HELP THE ASSOCIATION DEVELOP A STRATEGIC PLAN FOR THE UPCOMING LEGISLATIVE SESSION OF CONGRESS THE GROUP SAID SEPARATELY MR CLINTON IS PREPARING TO ANNOUNCE THAT NEW YORK LAWYER HAROLD ICKES WILL BECOME THE CAMPAIGN MANAGER FOR HIS DRIVE TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM MR ICKES 54 WAS A CLINTON CAMPAIGN AIDE LAST YEAR AND IS CONSIDERED AN ALLY OF HILLARY RODHAM CLINTON WHO IS HEADING THE HEALTHCARE EFFORT 9312070116 931207 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 3/4 LOW 2 3/4 NEAR CLOSING BID 2 3/4 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 303 30 TO 43 DAYS 335 44 TO 59 DAYS 332 60 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 345 30 DAYS 343 60 DAYS 343 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 273 TWO MONTHS 273 THREE MONTHS 278 SIX MONTHS 302 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 345 ONE MONTH 338 THREE MONTHS 345 SIX MONTHS BANKERS ACCEPTANCES 330 30 DAYS 326 60 DAYS 326 90 DAYS 327 120 DAYS 328 150 DAYS 329 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/2 3 3/8 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/2 ONE MONTH 3 1/2 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 699 60 DAYS 706 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 697 60 DAYS 707 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312070115 931207 WHO'S NEWS AVIALL A RYDER SPINOFF TAPS RETIRED EXECUTIVE TO BECOME CHAIRMAN DALLAS AVIALL INC NAMED ROBERT LAMBERT A FORMER SENIOR EXECUTIVE VICE PRESIDENT OF RYDER SYSTEM INC CHAIRMAN OF ITS SIXMEMBER BOARD THE ONLY AVIALL EXECUTIVE TO BE NAMED TO THE BOARD IS MARSHALL TAYLOR 47 PRESIDENT AND CHIEF EXECUTIVE HE HEADED RYDER'S AVIATION UNITS BEFORE THE SPINOFF THE OTHER BOARD MEMBERS ARE ROBERT FREDERICK 67 A RETIRED EXECUTIVE GENERAL ELECTRIC CO HENRY MCKINNELL 51 CHIEF FINANCIAL OFFICER OF PFIZER INC STEVEN REINEMUND 45 CHIEF EXECUTIVE OF THE FRITOLAY DIVISION OF PEPSICO INC AND HENRY WENDT 60 CHAIRMAN OF SMITHKLINE BEECHAM 9312070114 931207 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED DEC 3 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON JAN 1 1994 ITS REVENUE BONDS POMONA COLLEGE SERIES 1984 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON JAN 1 1994 475000 PRINCIPAL AMOUNT OF ITS STANFORD UNIVERSITY PROJECT SERIES C 650 BEARER BONDS DUE JAN 1 2003 AND ITS 650 REGISTERED BONDS DUE JAN 1 2003 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE CHELAN COUNTY PUBLIC UTILITY DISTRICT NO 1 WASHINGTON WILL REDEEM ON JAN 1 1994 ITS 5 ROCKY REACH HYDROELECTRIC SYSTEM REVENUE BONDS DUE JULY 1 2013 SEAFIRST CORPORATE AGENCY GLENDALE CALIF IS REDEMPTION AGENT CHICAGO WILL REDEEM ON JAN 1 1994 ITS SINGLE FAMILY MORTGAGE REVENUE BONDS 1978 SERIES A DUE JULY 1 2009 CONTINENTAL BANK CHICAGO IS TRUSTEE HOSPITAL AUTHORITY OF EAST CHICAGO IND WILL REDEEM ON JAN 1 1994 ITS 85 HOSPITAL FACILITY REVENUE BONDS SERIES A DUE JAN 1 2000 THE FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE HUDSON WISC WILL REDEEM ON JAN 1 1994 150000 PRINCIPAL AMOUNT OF ITS 775 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES A DUE JAN 1 1997 FIRST TRUST ST PAUL MINN IS TRUSTEE MADISON WISC WILL REDEEM ON JAN 3 1994 ITS WATERWORKS SYSTEM MORTGAGE REVENUE BONDS SERIES 1981 BANK ONE WISCONSIN TRUST CO WAUKEAHA WISC AND CHEMICAL BANK NEW YORK ARE PAYING AGENTS OKLAHOMA TURNPIKE AUTHORITY WILL REDEEM ON JAN 1 1994 THE FOLLOWING TURNPIKE REVENUE SYSTEM BONDS DUE JAN 1 2006 535000 PRINCIPAL AMOUNT OF ITS 47 SERIES A AND 200000 PRINCIPAL AMOUNT OF ITS 5 SERIES B BOATMEN'S FIRST NATIONAL BANK OF OKLAHOMA OKLAHOMA CITY IS SUCCESSOR TRUSTEE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY WILL REDEEM ON JAN 1 1994 THE FOLLOWING TRANSIT BONDS DUE JULY 1 OF THE GIVEN YEARS 73 SERIES A AND 735 SERIES B DUE 2012 775 DUE 2013 815 DUE 2014 CHEMICAL BANK IS FISCAL AGENT WILLIAMSPORT MUNICIPAL AUTHORITY PA WILL REDEEM ON JAN 1 1994 530000 PRINCIPAL AMOUNT OF ITS 5875 VARIOUSPURPOSE GUARANTEED LEASE REVENUE BONDS SERIES 1978 DUE JAN 1 1998 MELLON BANK PHILADELPHIA IS TRUSTEE GEORGIA POWER CO WILL REDEEM ON DEC 24 1993 THE FOLLOWING FIRST MORTGAGE BONDS 4 5/8 DUE OCT 1 1994 AND 4 7/8 DUE SEPT 1 1995 CHEMICAL BANK NEW YORK IS TRUSTEE NORTHERN STATES POWER CO WILL REDEEM ON DEC 22 1993 THE FOLLOWING FIRST MORTGAGE BONDS 8 DUE OCT 1 1999 AND MARCH 1 2001 AND 8 1/4 DUE JUNE 1 2001 AND ON JAN 3 1994 IT WILL REDEEM ITS 8 3/8 SERIES DUE JAN 1 2004 HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE 9312070113 931207 ECONOMY FLORIDA WELFARETOWORK PLAN'S SUCCESS IN STUDY MAY INFLUENCE WHITE HOUSE BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FLORIDA PROGRAM THAT STEERS WELFARE RECIPIENTS TOWARD JOBS HAS PRODUCED POSITIVE SHORTTERM RESULTS ACCORDING TO A STUDY THAT COULD INFLUENCE THE CLINTON ADMINISTRATION'S APPROACH TO REFORMING THE WELFARE SYSTEM THE ANALYSIS BY MANPOWER DEMONSTRATION RESEARCH CORP JOINS A GROWING BODY OF EVIDENCE THAT SUGGESTS IT'S POSSIBLE TO INCREASE EARNINGS FOR WELFARE RECIPIENTS AND REDUCE WELFARE SPENDING AT THE SAME TIME THE CLINTON ADMINISTRATION PLANS TO PRESENT ITS PROPOSAL EARLY NEXT YEAR BUT ALREADY IT HAS SAID THAT IT FAVORS IMPOSING A TWOYEAR LIMIT ON WELFARE STINTS AFTER WHICH RECIPIENTS WOULD HAVE TO WORK IN EXCHANGE FOR THEIR BENEFITS PROGRAMS SUCH AS FLORIDA'S PROJECT INDEPENDENCE ARE A CRITICAL FIRST STEP TO SWEEPING TIMELIMIT WELFARE REFORM SAID MDRC PRESIDENT JUDITH GUERON THE FUTURE CHALLENGE IS TO BUILD AND IMPROVE ON THIS BASE SHE SAID THE 1988 FEDERAL JOB OPPORTUNITIES AND BASIC SKILLS PROGRAM GAVE STATES LEEWAY TO EXPERIMENT WITH WELFARE REFORM FLORIDA'S PROJECT ONE OF THE NATION'S LARGEST EMPHASIZES JOBPLACEMENT SERVICES OVER TRAINING ALL SINGLE PARENTS AND UNEMPLOYED HEADS OF TWOPARENT WELFARE FAMILIES ARE REQUIRED TO PARTICIPATE THE MDRC STUDY FOCUSED ON 18000 SINGLE PARENTS WHO APPLIED FOR OR RECEIVED WELFARE BENEFITS IN NINE FLORIDA COUNTIES BETWEEN JULY 1990 AND AUGUST 1991 ABOUT 75 OF THE SAMPLE PARTICIPATED IN PROJECT INDEPENDENCE FOR THE STUDY THE REMAINDER WERE EXCUSED BUT STILL WERE ELIGIBLE FOR OTHER GOVERNMENT AID THE STUDY FOUND THAT AFTER A YEAR PROGRAM PARTICIPANTS ON AVERAGE EARNED 7 OR 157 MORE THAN THE CONTROL GROUP THEIR WELFARE PAYMENTS WERE REDUCED BY THAT AMOUNT AFTER ONE YEAR ABOUT 64 OF THE PROGRAM PARTICIPANTS WERE STILL RECEIVING WELFARE COMPARED WITH 69 OF THE CONTROL GROUP BUT THE PROGRAM HAS A SOBERING ASPECT SAID MDRC SENIOR RESEARCH ASSOCIATE JAMES KEMPLE A LEAD AUTHOR OF THE STUDY PARENTS WITH PRESCHOOL CHILDREN A GROUP RARELY STUDIED AND USUALLY NOT REQUIRED TO PARTICIPATE IN WELFARETOWORK PROGRAMS EXPERIENCED A 5 REDUCTION IN WELFARE PAYMENTS AND NO SIGNIFICANT INCREASE IN EARNINGS AT THE ONEYEAR MARK PARENTS WITH SCHOOLAGE CHILDREN INCREASED EARNINGS AN AVERAGE OF 11 OR 280 DURING THE FIRST YEAR MDRC STUDIED FLORIDA BECAUSE IT HAS ONE OF THE LARGEST AND MOST DIVERSE WELFARE POPULATIONS THE NONPROFIT RESEARCH GROUP ALREADY HAS STUDIED CALIFORNIA'S WELFARETOWORK PROGRAM AND IS IN THE PROCESS OF A SIXSTATE EVALUATION OF PROJECTS UNDER THE JOBS PROGRAM DR GUERON SAID 9312070112 931207 REXENE SUPPLIES KIMBERLY CLARK DALLAS REXENE CORP SAID THAT ITS UK SUBSIDIARY SIGNED A LONGTERM AGREEMENT WITH KIMBERLYCLARK CORP TO SUPPLY IT WITH PLASTIC FILM BACKSHEET IN ADDITION REXENE SAID IT IS PLANNING TO BUILD A 20 MILLION PLANT IN HUMBERSIDE COUNTY ENGLAND TO MAKE THE FILM BACKSHEET WHICH IS USED IN THE PRODUCTION OF DIAPERS AND TRAINING PANTS REXENE SAID THE PLANT IS EXPECTED TO BEGIN OPERATIONS LATE NEXT YEAR 9312070111 931207 TRUST SELLS SEAGRAM SHARES MONTREAL A FAMILY TRUST CONTROLLED BY SEAGRAM CO COCHAIRMAN CHARLES R BRONFMAN SOLD 37 MILLION SHARES OF SEAGRAM STOCK REDUCING THE FAMILY STAKE IN THE SPIRITS MAKER BY 215 TO 364 A SPOKESMAN FOR MR BRONFMAN SAID THE OPENMARKET SALE WAS FOR FAMILY FINANCIAL PLANNING REASONS AT SEAGRAM'S CLOSING PRICE OF 2675 DOWN 75 CENTS ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE SALE OF SHARES GENERATED ABOUT 99 MILLION SEAGRAM EXECUTIVES DECLINED TO COMMENT 9312070110 931207 FINANCING BUSINESS MFS COMMUNICATIONS CO MFS COMMUNICATIONS CO OMAHA NEB SAID IT EXPECTS PROCEEDS OF ABOUT 400 MILLION FROM THE ISSUANCE OF SENIOR DISCOUNT NOTES DUE 2004 THAT WERE REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION THE PROVIDER OF COMPETITIVEACCESS TELECOMMUNICATIONS SERVICES SAID PROCEEDS WILL BE USED TO PAY FOR THE EXPANSION OF ITS FIBEROPTIC NETWORKS AND SERVICES AND TO DEVELOP NEW NETWORKS AND SERVICES THE NOTES ARE EXPECTED TO BE SOLD IN JANUARY MANAGING THE UNDERWRITING WILL BE SALOMON BROTHERS INC BEAR STEARNS & CO BT SECURITIES CORP AND JP MORGAN SECURITIES INC 9312070108 931207 WHO'S NEWS RILEY TO TAKE HONG KONG POST NEW YORK IVERS RILEY THE AMERICAN STOCK EXCHANGE'S SENIOR VICE PRESIDENTDERIVATIVE SECURITIES WILL BECOME CHIEF EXECUTIVE OF THE HONG KONG FUTURES EXCHANGE UNDER MR RILEY THE AMEX BECAME THE NATION'S SECONDLEADING DERIVATIVES MARKET BEHIND THE CHICAGO BOARD OPTIONS EXCHANGE DERIVATIVES ARE SECURITIES SUCH AS FUTURES AND OPTIONS WHOSE VALUE DEPENDS ON THE PRICE OF OTHER SECURITIES MR RILEY 61 YEARS OLD SUCCEEDS FELLOW AMERICAN GARY KNIGHT 49 WHOSE THREEYEAR TERM EXPIRES MR KNIGHT HAS SAID HIS PLANS AFTER STEPPING DOWN ARE UNCLEAR BUT HE EXPECTS TO STAY IN HONG KONG MR RILEY'S MOVE IS EFFECTIVE JAN 3 THE AMEX HASN'T NAMED A SUCCESSOR FOR MR RILEY 9312070107 931207 FED EXGOVERNOR SEGER SETTLES CHARGES IN KROGER CO CASE BY PAYING 5000 BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FORMER FEDERAL RESERVE GOVERNOR MARTHA SEGER PAID 5000 TO SETTLE FEDERAL CHARGES THAT JUST FIVE MONTHS AFTER RESIGNING SHE ARRANGED AND ATTENDED A MEETING AT THE FED FOR KROGER CO EXECUTIVES WHO WERE UNHAPPY ABOUT A PROPOSED AGENCY RULE MS SEGER WHO LEFT THE FED BOARD IN MARCH 1991 AFTER SEVEN YEARS JOINED KROGER'S BOARD IN MAY 1991 THE CINCINNATI GROCERY CHAIN PAID HER 1500 FOR ATTENDING THE 45MINUTE MEETING IN AUGUST 1991 BETWEEN ITS CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICERS AND FED GOVERNOR JOHN LAWARE ACCORDING TO PAPERS FILED IN FEDERAL COURT HERE LIKE OTHER FEDERAL EMPLOYEES FORMER FED GOVERNORS ARE BARRED FROM APPEARING BEFORE THEIR FORMER EMPLOYER ON SOMEONE ELSE'S BEHALF WITH INTENT TO INFLUENCE GOVERNMENT POLICY FOR ONE YEAR AFTER THEY LEAVE THEIR JOBS ALERTED BY THE FED'S INSPECTOR GENERAL THE JUSTICE DEPARTMENT'S PUBLIC INTEGRITY SECTION BROUGHT CIVIL CHARGES AGAINST MS SEGER THE CHARGES WERE FILED AND SETTLED SIMULTANEOUSLY IN AUGUST BUT THE AGREEMENT ESCAPED PUBLIC NOTICE UNTIL THE INSPECTOR GENERAL RELEASED HIS SEMIANNUAL REPORT LAST WEEK IN MAKING THE 5000 PAYMENT TO THE TREASURY MS SEGER ACKNOWLEDGED TELEPHONING MR LAWARE'S OFFICE TO ARRANGE THE MEETING AND MAKING INTRODUCTIONS AT THE BEGINNING OF THE SESSION BUT SHE DENIED ANY WRONGDOING AND IN COURT FILINGS SHE SAID THAT SHE HADN'T INTENDED TO INFLUENCE THE FED SHE ADDED THAT SHE HADN'T SAID ANYTHING OF SUBSTANCE AFTER INTRODUCING THE KROGER EXECUTIVES WHO HAD CONCERNS ABOUT A FED REGULATION GOVERNING BANK LOANS TO HIGHLY LEVERAGED COMPANIES SUCH AS KROGER MS SEGER SAID SHE HAD BEEN SURPRISED TO RECEIVE THE 1500 CHECK FROM KROGER WHICH CAME WITH A LETTER SAYING THE COMPANY'S POLICY WAS TO PAY DIRECTORS THE EQUIVALENT OF THE FEE FOR ATTENDING A BOARD MEETING WHEN EXTRAORDINARY REQUESTS WERE MADE OF DIRECTORS' TIME MS SEGER AN ECONOMIST AND FORMER MICHIGAN STATE BANKING COMMISSIONER COULDN'T BE REACHED FOR COMMENT YESTERDAY HER ATTORNEY CARL RAUH SAID WE FELT VERY STRONGLY THAT SHE HADN'T DONE ANYTHING WRONG THIS MEETING WAS A RESPONSE TO A REQUEST FOR PUBLIC COMMENT BUT TO LITIGATE SOMETHING FOR TWO YEARS COSTS TENS OF THOUSANDS OF DOLLARS STEPHEN POTTS DIRECTOR OF THE OFFICE OF GOVERNMENT ETHICS RECENTLY CIRCULATED SUMMARIES OF THE SEGER CASE AND A SEPARATE CASE TO ALL FEDERAL AGENCIES DESCRIBING THEM AS PRECEDENT SETTING THE JUSTICE DEPARTMENT SAID THE TWO CASES ARE AMONG THE FIRST INSTANCES IN WHICH IT USED A PROVISION OF A 1989 LAW THAT ALLOWS THE DEPARTMENT TO SEEK CIVIL PENALTIES IN ETHICS CASES IN THE OTHER CASE ROCKWELL SCHNABEL A FORMER DEPUTY COMMERCE SECRETARY IN THE BUSH ADMINISTRATION PAID 5000 TO SETTLE CIVIL CHARGES THAT HE IMPROPERLY TELEPHONED AND WROTE TO THE VETERANS AFFAIRS DEPARTMENT IN 1991 AND 1992 ON BEHALF OF HIS FATHERINLAW'S COMPANY DEL MAR AVIONICS WHICH SUPPLIES SURGICAL AND MEDICAL INSTRUMENTS TO THE DEPARTMENT MR SCHNABEL ALSO DENIED ANY WRONGDOING 9312070106 931207 ENTERPRISE FINANCING SMALL BUSINESS NICHE FUNDS INCREASE VENTURECAPITAL INDUSTRY ASSETS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL SPECIALIZED FUNDS BOOST VENTURECAPITAL INDUSTRY ASSETS NEW INVESTMENTS IN VENTURECAPITAL FUNDS IN 1993 ARE EXPECTED TO EXCEED THE 25 BILLION RAISED LAST YEAR SAYS PRIVATE EQUITY ANALYST AN INDUSTRY NEWSLETTER IN WELLESLEY HILLS MASS THE TOTAL MAY EXCEED 28 BILLIONDOUBLE THE AMOUNT RAISED IN 1991 THE NEWSLETTER ADDS MUCH OF THIS INVESTING BOOM HAS BEEN FUELED BY GREATER INVESTOR INTEREST IN SMALLER NICHE FUNDS SAYS STEVEN GALANTE EDITOR OF PRIVATE EQUITY ANALYST AMONG SUCH FUNDS THE NORTH AMERICAN ENVIRONMENTAL FUND SAN DIEGO MEDICAL INNOVATION PARTNERS MINNEAPOLIS UNTERBERG HARRIS INTERACTIVE MEDIA SAN FRANCISCO AND HUMMER WINBLAD VENTURE PARTNERS IN EMERYVILLE CALIF MEDICAL INNOVATION PARTNERS WHICH SPECIALIZES IN EARLYSTAGE HEALTHCARE COMPANIES COMPLETED RAISING 35 MILLION FOR ITS SECOND FUND LAST MONTH NORTH AMERICAN ENVIRONMENTAL FUND WHICH INVESTS IN COMPANIES WORKING ON ENVIRONMENTAL PROBLEMS SUCH AS WASTEWATER HANDLING SAYS IT RAISED 30 MILLION THIS YEAR FROM A NUMBER OF INVESTORS INCLUDING SEVERAL MEXICAN COMPANIES AND WMX TECHNOLOGIES INC THE FUND RECENTLY INVESTED 5 MILLION TO ACQUIRE A 25 STAKE IN A MEXICAN WASTEWATER HANDLING COMPANY STILL RAISING CAPITAL FOR THE FUND HASN'T BEEN EASY ACCORDING TO THOMAS GEPHARDT A MANAGING PARTNER IT TOOK US A FULL YEAR TO RAISE THE MONEY HE SAYS BUT WITH THE NEW NORTH AMERICAN FREE TRADE AGREEMENT FINANCIAL INSTITUTIONS SHOULD BE MORE WILLING TO PROVIDE FINANCING FOR ENVIRONMENTAL PROJECTS IN MEXICO MR GEPHARDT SAYS INSTITUTIONAL INVESTORS NO LONGER BELIEVE THAT THE VENTURECAPITAL INDUSTRY IS OVERFUNDED SAYS MR GALANTE OF PRIVATE EQUITY ANALYST NOW THEY THINK THERE'S A SCARCITY OF CAPITAL HE ADDS PUBLIC PENSION FUNDS IN CALIFORNIA AND CONNECTICUT HAVE BEEN AMONG THIS YEAR'S BIGGEST VENTURECAPITAL INVESTORS BIOTECH COMPANIES TURN TO AN INNOVATIVE PRIVATE FINANCING DEVICE BECAUSE MANY PUBLIC INVESTORS ARE RELUCTANT TO INVEST IN THEM NUMEROUS SMALL BIOTECHNOLOGY COMPANIES HAVE TURNED TO PRIVATE INVESTMENTS IN PUBLIC EQUITY NICKNAMED PIPES THESE FINANCINGS LET COMPANIES SELL THEIR STOCK TO CERTAIN PRIVATE INVESTORS AND REGISTER THE OFFERING LATER WITH THE US SECURITIES AND EXCHANGE COMMISSION AND UNLIKE CONVENTIONAL PRIVATE PLACEMENTS WHICH HAVE TRADING RESTRICTIONS PIPES CAN BE FREELY TRADED AS SOON AS THE COMPANY REGISTERS THE SHARES WITH THE SEC SO FAR THIS YEAR 33 SMALL COMPANIES HAVE RAISED 420 MILLION THROUGH SUCH PRIVATE FINANCINGS SAYS RECOMBINANT CAPITAL A SAN FRANCISCO FINANCIALRESEARCH CONCERN THE PRIVATEFINANCING IDEA IS SO NEW THAT ONLY 22 MILLION WAS RAISED THIS WAY LAST YEAR ACCORDING TO FEINSTEIN PARTNERS A BOSTON MARKETRESEARCH CONCERN COMPANIES USING PIPES THIS YEAR INCLUDE ALPHABETA TECHNOLOGY AND XOMA WHICH RAISED 20 MILLION EACH UNIVAX WHICH RECEIVED ABOUT 11 MILLION AND T CELL SCIENCES AND ISIS WHICH EACH EXPECTS TO CLOSE SOON ON 18 MILLION IN FINANCINGS SUCH PRIVATE DEALS INTEREST STARTUP COMPANIES BECAUSE THEY CAN BE DONE QUICKLY WITH LOW TRANSACTION COSTS SAYS JOSEPH BARTLETT AN ATTORNEY WITH MAYER BROWN & PLATT NEW YORK INVESTORS LIKE THEM BECAUSE THE SHARES ARE PRICED 5 TO 10 LOWER THAN IN THE PUBLIC MARKET AND SOMETIMES AS MUCH AS 20 LOWER ALPHABETA SAYS IT COMPLETED ITS DEAL IN LESS THAN A WEEK WITHOUT A ROAD SHOW OR ANY ELABORATE MARKETING THE WORCESTER MASS BIOTECH COMPANY IS DEVELOPING CARBOHYDRATEBASED MEDICINES TO PREVENT AND TREAT INFECTION AND TO REDUCE CHOLESTEROL THOUGH SUCH PRIVATE PLACEMENTS ARE MOST ATTRACTIVE WHEN PUBLIC INVESTORS ARE SKITTISH SOME COMPANIES WILL CONTINUE TO USE PIPES TO FINANCE SPECIFIC DEVELOPMENT PROGRAMS SAYS MARK EDWARDS PRESIDENT OF RECOMBINANT INVESTORS COOL THEIR ARDOR FOR SOME SMALL ENVIRONMENTAL BUSINESSES THE EQUITY MARKETS HAVE PRACTICALLY SHUT DOWN FOR SMALL COMPANIES THAT PROVIDE ENVIRONMENTAL ENGINEERING AND CONSULTING SERVICES SAYS PAUL ZOFNASS PRESIDENT OF ENVIRONMENTAL FINANCIAL CONSULTING GROUP NEW YORK MOST SUCH COMPANIES HAVEN'T BEEN ABLE TO DO INITIAL PUBLIC OFFERINGS FOR MORE THAN A YEAR AND EVEN FOLLOWUP FINANCINGS BY THESE COMPANIES THAT WENT PUBLIC IN THE LATE 1980S HAVE BEEN RARE THIS YEAR THE LACK OF ACCESS TO CAPITAL HAS FORCED MOST ENVIRONMENTAL ENGINEERING COMPANIES WITH SALES OF LESS THAN 50 MILLION TO CONSIDER A SALE MERGER OR A STRATEGIC ALLIANCE SAYS MR ZOFNASS THE 1990 PASSAGE OF THE FEDERAL CLEAN AIR ACT SPURRED THE FORMATION OF HUNDREDS OF SMALL COMPANIES IN THE ENVIRONMENTAL ENGINEERING AND CONSULTING FIELD MANY EVEN WENT PUBLIC NOW THEY ARE HAVING A HARD TIME SAYS HOWARD ELLIS CHIEF EXECUTIVE OFFICER OF ENVIROPLAN INC A ROSELAND NJ MAKER OF AIRPOLLUTION MEASUREMENT SYSTEMS MUCH OF THE ANTICIPATED BUSINESS FROM A PROENVIRONMENTAL ADMINISTRATION HASN'T YET MATERIALIZED SAYS MR ZOFNASS IN FACT FEDERAL CUTS IN ENVIRONMENTAL EXPENDITURES HAVE FURTHER HURT THESE SMALL COMPANIES AND THEIR ABILITY TO RAISE MONEY MINORITY FUNDS SEE SQUEEZE ON ABILITY TO INVEST THE 33 MILLION APPROPRIATED BY THE FEDERAL GOVERNMENT FOR MINORITY VENTURECAPITAL FUNDS THIS FISCAL YEAR UNCHANGED FROM FISCAL 1993 IS STILL FAR SHORT OF INDUSTRY NEEDS AS DEMAND FOR CAPITAL ESCALATES SAYS DIANE THOMAS VICE PRESIDENT OF THE NATIONAL ASSOCIATION OF INVESTMENT COMPANIES THE WASHINGTON DC TRADE GROUP REPRESENTS VENTURE FUNDS INVESTING IN MINORITYOWNED BUSINESSES BY CONTRAST SMALL BUSINESS INVESTMENT COMPANIES THAT INVEST IN MAINSTREAM BUSINESSES WILL RECEIVE MORE THAN 300 MILLION FROM UNCLE SAM THIS FISCAL YEAR THAT'S A THREEFOLD INCREASE FROM FISCAL 1993 MINORITY VENTURE FUNDS RECEIVE MONEY FROM PRIVATE INVESTORS AND ALSO BORROW FROM THE FEDERAL GOVERNMENT VENTURE CAPITALISTS THEN INVEST IN MINORITYOWNED BUSINESSES BUT BECAUSE A LARGE AMOUNT OF FEDERAL BORROWINGS COME DUE THIS FISCAL YEAR MANY FUNDS WILL NEED ROLLOVER CAPITAL MS THOMAS EXPLAINS UNLESS CONGRESS APPROVES MORE MONEY FOR MINORITY VENTURE FUNDS NEXT YEAR MANY WILL HAVE TO SHARPLY CUT THEIR NEW INVESTMENTS IN MINORITYOWNED BUSINESSES MS THOMAS FEARS 9312070105 931207 TECHNOLOGY & SCIENCE A RIVAL'S LITTLE JOKE HAS INTEL LAUGHING ALL THE WAY TO COURT NO 1 CHIP MAKER SUES CYRIX SAYING COMPETITOR'S ADS INFRINGE ON ITS TRADEMARK BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL CYRIX CORP CALLS IT AN INSIDE JOKE INTEL CORP IS NOT AMUSED SO IT IS THAT INTEL THE WORLD'S LARGEST CHIP PRODUCER HAS SUED CYRIX A RELATIVELY SMALL BUT PESKY COMPETITOR OVER CYRIX'S SPOOF OF INTEL'S SLICK INTEL INSIDE ADVERTISING CAMPAIGN AND CORPORATE LOGO THE SUIT ALLEGES TRADEMARK INFRINGEMENT IT WAS FILED LATE LAST MONTH IN FEDERAL COURT IN SAN FRANCISCO AND ALSO NAMES CYRIX'S ADVERTISING AGENCY PRISCARO & HUKARI AND THE AGENCY'S TWO PRINCIPALS CYRIX ALSO IS ENGAGED IN LAWSUITS WITH INTEL THAT ALLEGE CYRIX'S CHIPS WHICH MIMIC MANY OF THE FUNCTIONS OF INTEL SEMICONDUCTORS INFRINGE ON INTEL PATENTS THAT CASE IS BUT A SLIVER OF INTEL'S EXTENSIVE LITIGATION AGAINST RIVALS INCLUDING ADVANCED MICRO DEVICES INC INDEED INTEL IS RENOWNED FOR SUING ANY COMPANY IT BELIEVES IS INTRUDING ON ITS COMPETITIVE TURF THE NEW SUIT AGAINST CYRIX STEMS FROM WHAT THE RICHARDSON TEXAS CHIP MAKER SAYS IS A PLAYFUL TWIST ON INTEL'S MONTHSOLD INTEL INSIDE CAMPAIGN INTEL IS SAID TO HAVE SPENT ROUGHLY 100 MILLION FOR ITS CREATIVE DEVELOPMENT TELEVISION AIR TIME AND PRINTMEDIA SPACE THE INTEL CAMPAIGN'S LOGO AN OBLONG SURROUNDING THE WORDS INTEL INSIDE APPEARS ON ALMOST ALL COMPUTERS BUILT AROUND INTEL CHIPS AS WELL AS IN ITS TV AND PRINT ADS CYRIX'S CAMPAIGN IS BUILT AROUND A SIMILAR LOGO BUT IN THE CYRIX VERSION THE OBLONG SURROUNDS THE WORD DITTO THE TYPEFACES AND GRAPHICS ARE SIMILAR TO INTEL'S ALTHOUGH THE COLOR SCHEMES ARE DIFFERENT CYRIX'S DITTO LOGO BEGAN APPEARING IN ADS IN THE COMPUTER TRADE PRESS LAST MONTH JODI SHELTON CYRIX'S DIRECTOR OF CORPORATE COMMUNICATIONS SAID INTEL SUED WITHIN DAYS OF THE CAMPAIGN'S DEBUT WE HAVE A SENSE OF HUMOR BUT UNFORTUNATELY SOME OF OUR COMPETITORS DO NOT SHE OBSERVED SHE SAID THE INTEL SUIT IS COMPLETELY ABSURD BUT NOT SURPRISING SHE NOTED THAT CYRIX'S SALES FOR THE FIRST NINE MONTHS OF 1993 ARE ABOUT 1/50TH OF INTEL'S 63 BILLION IN SALES FOR THE PERIOD WE ARE A NIT COMPARED TO THEM BUT EVERY TIME WE INTRODUCE A PRODUCT THEY SUE US SHE SAID NOW THEY SUE US FOR INTRODUCING ADS WE'RE BEGINNING TO MEASURE OUR SUCCESS BY WHETHER INTEL SUES US HOWARD HIGH SPOKESMAN FOR THE SANTA CLARA CALIF CHIP MAKER DECRIED CYRIX'S AD CAMPAIGN AND ITS CRITICISM OF INTEL'S SUIT WE FEEL LIKE THEY WERE ENTICING US TO SUE THEM WHEN THEY RELEASED THESE ADS MR HIGH SAID CYRIX IS DESPERATE FOR ATTENTION AND THEY PROBABLY FIGURED WE'D HAVE TO SUE THEM OVER THIS AND THEY'D GET SOME FREE PUBLICITY OUT OF IT 9312070104 931207 CORPORATE FOCUS ERICSSON RIDES DIGITAL CELLULAR WAVE TO BOOMING PROFIT AGGRESSIVE RESEARCH HAS PAID OFF BUT COST OF KEEPING OUT IN FRONT IS HIGH BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM FOR INVESTORS WHO TRUSTED THE CHIEF EXECUTIVE OF TELEFON AB LM ERICSSON THE GAMBLE HAS PAID OFF IN HIS FIRST TWO YEARS AT THE HELM IN 1990 AND 1991 LARS RAMQVIST RAISED EYEBROWS BY BOOSTING ERICSSON'S TECHNICAL DEVELOPMENT OUTLAYS BY MORE THAN 50 IN A BET THE SWEDISH COMPANY COULD GRAB A HEAD START IN NEWGENERATION DIGITAL CELLULAR SYSTEMS THE INVESTMENT BINGE SENT PROFIT PLUNGING NEARLY 60 DURING THAT PERIOD BUT MR RAMQVIST IGNORED THE CARPING FROM BIG US INSTITUTIONAL INVESTORS THAT CONTROL MORE THAN 40 OF ERICSSON'S STOCK THIS YEAR BOOMING SALES OF NEW DIGITAL CELLULAR SYSTEMS FUELED A NINEFOLD SURGE IN PRETAX PROFIT FOR THE THIRD QUARTER AND A 15FOLD RISE DURING THE FIRST NINE MONTHS AND ERICSSON'S BENCHMARK CLASS B STOCK'S PRICE MORE THAN DOUBLED BETWEEN JANUARY AND OCTOBER BUT NOW INVESTORS CONTINUE TO EXPECT A LOT WHEN HE UNVEILED THE ROBUST THIRDQUARTER FIGURES LAST MONTH MR RAMQVIST ALSO AMENDED THE FULLYEAR FORECAST DOWNWARD THE NEW PREDICTION THAT PROFIT WOULD SOMEWHAT MORE THAN DOUBLE WAS A CHANGE MORE IN STYLE THAN SUBSTANCE HE CLAIMED PROMPTED BY IRRELEVANT ESTIMATES FROM SOME ANALYSTS THAT 1993 PROFIT MIGHT TRIPLE OR EVEN QUADRUPLE HOWEVER WELLINTENTIONED HIS COMMENTS STRUCK A SOUR NOTE AMID THE EUPHORIA SWEEPING GLOBAL TELECOMMUNICATIONS STOCKS AS ALARMED US INVESTORS LAUNCHED A WAVE OF SELLING ERICSSON'S CLASS B SHARES PLUNGED 55 KRONOR OR 14 ON NOV 19 TO 358 KRONOR 4250 IN STOCKHOLM TRADING YESTERDAY ERICSSON CLASS B SHARES ROSE 11 KRONOR TO 365 KRONOR IN A RECENT INTERVIEW AT ERICSSON HEADQUARTERS MR RAMQVIST APPEARED SLIGHTLY SHELLSHOCKED BUT UNREPENTANT ABOUT THE FLAP MANY ANALYSTS WHO HAD FOLLOWED ERICSSON FOR YEARS AGREED THE MARKET REACTION WAS OVERDONE INDEED AS THE MOST BULLISH US ANALYSTS FRANTICALLY PRUNED THEIR FORECASTS LONDONBASED MERRILL LYNCH & CO ANALYST NEIL BARTON WAS RAISING HIS PROFIT ESTIMATE ON THE BASIS OF THE SURPRISINGLY BULLISH THIRD QUARTER HOWEVER A REASSESSMENT OF ERICSSON CLEARLY IS UNDER WAY MANY ANALYSTS EXPECT PROFIT TO CLIMB ABOUT 50 NEXT YEAR AS THE INITIAL WAVE OF EUROPEAN DIGITAL CELLULAR EQUIPMENT ORDERS ROLLS ON BUT NAGGING DOUBTS LINGER ABOUT LONGERTERM PROSPECTS ERICSSON EXECUTIVES CONCEDE IT IS BECOMING INCREASINGLY DIFFICULT TO LINE UP TRADE FINANCING FOR CHINA THE COMPANY'S FASTESTGROWING MARKET AS A RESULT FUTURE DELIVERIES TO CHINA COULD FALL SHORT OF EARLIER UPBEAT PROJECTIONS PROTRACTED RECESSIONS HAVE SLASHED VOLUME FROM VITAL MARKETS LIKE MEXICO AND SPAIN AND TRIMMED PROFIT MARGINS ON RECENT ORDERS FOR PUBLIC SWITCHING EQUIPMENT MOREOVER WITHOUT FANFARE TECHNICAL DEVELOPMENT SPENDING HAS CLIMBED SHARPLY THIS YEAR AND SEEMS VIRTUALLY CERTAIN TO ACCELERATE FURTHER NEXT YEAR ANALYSTS CAUTION THE BIG WORRY FOR INVESTORS IS THAT THE NEW SPLURGE IN RESEARCH SPENDING MIGHT ONCE AGAIN RESTRAIN PROFIT GROWTH AND CLOBBER THE STOCK YOU HAVE TO BE REALISTIC ABOUT THIS MR RAMQVIST SAYS WE'VE ACCEPTED THE CHALLENGE OF STAYING AT THE FOREFRONT OF TELECOMMUNICATIONS BUSINESSES BUT OBVIOUSLY I'M CONCERNED ABOUT THE CURRENT LEVEL OF DEVELOPMENT SPENDING 22 OF SALES IS TOO HIGH HE ADDS BUT THERE ARE NO SHORTCUTS AND THE LEVEL OF UNCERTAINTY AMONG CUSTOMERS ABOUT WHERE MARKETS ARE HEADED IS SO GREAT IN THIS BUSINESS THAT NOBODY IS SAFE AND IT HAS NOTHING TO DO WITH SIZE TO BE SURE NOBODY QUESTIONS ERICSSON'S SURVIVAL OR STUNNING SUCCESS IN THE HIGHFLYING CELLULAR INDUSTRY CELLULARDIVISION SALES SOARED 96 DURING THE THIRD QUARTER TO 624 BILLION KRONOR 7419 MILLION AND 81 FOR THE FIRST NINE MONTHS TO 169 BILLION KRONOR THE COMPANY DOESN'T DISCLOSE QUARTERLY OPERATING PROFIT FOR INDIVIDUAL DIVISIONS BUT ACCORDING TO MR RAMQVIST CELLULAR OPERATIONS HAVE ACCOUNTED FOR THE MAJORITY OF PROFIT GROWTH SO FAR THIS YEAR SOME ANALYSTS FRETTED THAT THE MOVE TO DIGITAL CELLULAR TECHNOLOGY WOULD UNLEASH CUTTHROAT COMPETITION FROM GIANT COMPANIES SUCH AS ALCATEL NV AND SIEMENS AG WHICH HAD MISSED THE INITIAL ANALOG PHASE OF CELLULAR DEVELOPMENT INSTEAD ERICSSON HAS MANAGED TO BOLSTER ITS STANDING MR RAMQVIST SAYS ERICSSON HAS SNAGGED MORE THAN 70 OF DIGITAL CELLULAR EQUIPMENT ORDERS IN EUROPE AND A 58 SHARE OF COMBINED ANALOG AND DIGITAL CELLULAR SYSTEMS IN THE US THE SWEDISH COMPANY HOLDS A 32 MARKET SHARE MEASURED AS THE NUMBER OF SUBSCRIBERS SERVED BY ERICSSONSUPPLIED EQUIPMENT ROUGHLY EQUAL TO THAT OF AMERICAN TELEPHONE & TELEGRAPH CO MOST OF THE 19901991 INVESTMENT BINGE FINANCED SIMULTANEOUS DEVELOPMENT OF DIGITAL CELLULAR SYSTEMS FOR SEPARATE STANDARDS ADOPTED BY EUROPE THE US AND JAPAN NO RIVAL HAS YET MATCHED THE BREADTH OF ERICSSON'S PRODUCT PROGRAMAND A SALES WINDFALL LOOMS FROM DELIVERIES TO JAPAN'S DIGITAL CELLULAR NETWORKS SLATED TO BEGIN OPERATIONS NEXT YEAR ERICSSON STRATEGISTS PREDICT THE NUMBER OF CELLULAR SUBSCRIBERS WORLDWIDE WILL QUADRUPLE OVER THE NEXT FIVE YEARS TO ABOUT 100 MILLION FROM 25 MILLION HOWEVER SOME INDUSTRY ANALYSTS ARE CONVINCED THAT EQUIPMENT ORDERS FROM EUROPEAN OPERATORS WILL NOSEDIVE AT LEAST TEMPORARILY IN 1995 AS OPERATORS TRY TO FILL SURPLUS CAPACITY IN THEIR SYSTEMS MR RAMQVIST BRUSHES OFF SUCH PREDICTIONS ARGUING PEOPLE SEEM WILLING TO PAY FOR THE NEW DIGITAL SERVICES SO WE EXPECT EXPANSION TO CONTINUE BESIDES THE ERICSSON CHIEF ADDS NEW OPPORTUNITIES ARE CERTAIN TO EMERGE SUCH AS THE SOCALLED PERSONAL COMMUNICATIONS SERVICES NETWORKS DUE TO BEGIN OPERATIONS IN THE US NEXT YEAR AND IN 1995 IF WE HADN'T HAD PCS THERE MIGHT HAVE BEEN SOME SLOWING OF GROWTH FORECAST IN 1996 AND 1997 THOUGH CERTAINLY NOT A FLATTENING OUT MR RAMQVIST SAYS THE PCS PROGRAM WILL KICK OFF A MASSIVE AUCTION OF PRIZED RADIO FREQUENCY AROUND THE US NEW OPERATORS AWARDED FREQUENCIES WILL BE ALLOWED TO CHOOSE WHICH TECHNOLOGY TO USE IN CONTRAST TO THE DYNAMIC CELLULAR BUSINESS ERICSSON'S FORMER FLAGSHIP DIVISION PUBLIC TELECOMMUNICATIONS HAS LOST MOMENTUM THE PAST FEW YEARS BUT WE'RE SPENDING A LOT OF MONEY TO GET A FOOTHOLD IN NEW SERVICES AND APPLICATIONS SUCH AS VIDEOONDEMAND AND MULTIMEDIA MR RAMQVIST SAYS EVEN MR RAMQVIST ADMITS THE NEW MULTIMEDIA ERA CAN MAKE YOU WONDER IS THIS A NEW CHALLENGE THAT WILL ALMOST KILL EVERYBODY IN THE INDUSTRY ERICSSON HAS OBVIOUSLY MADE THIS KIND OF HUGE INVESTMENT IN NEW TECHNOLOGY A COUPLE OF TIMES AND WE'VE SEEN A LIGHT AT THE END OF THE TUNNEL EVERY TIME HE ADDS I CAN'T SAY I KNOW EXACTLY WHAT WILL HAPPEN BUT WE'VE DONE OUR HOMEWORK CAREFULLY AND WE'RE IN THIS TO STAY 9312070103 931207 MARKETING & MEDIA NEW YORK TIMES SEES 45 MILLION CHARGE FOR FOURTH QUARTER NEW YORK NEW YORK TIMES CO SAID IT WILL TAKE A CHARGE IN ITS FOURTHQUARTER EARNINGS OF 45 MILLION OR THREE CENTS A SHARE AS A RESULT OF SEVERANCE AND RELATED CHARGES RESULTING FROM VOLUNTARY EARLY RETIREMENTS FROM THE COMPOSING ROOM OF THE NEW YORK TIMES NEWSPAPER EXCLUDING THE ACQUISITION OF THE BOSTON GLOBE AS WELL AS ACCOUNTING CHANGES AND OTHER SPECIAL ONETIME ITEMS IT EXPECTS FOURTHQUARTER 1993 EARNINGS WILL BE IN THE RANGE OF 19 MILLION OR 22 CENTS A SHARE TO 27 MILLION OR 32 CENTS A SHARE A YEARAGO THE COMPANY EARNED 16 MILLION OR 20 CENTS A SHARE NEW YORK TIMES ALSO EXPECTS 1993 EARNINGS TO RANGE FROM 59 MILLION OR 70 CENTS A SHARE TO 67 MILLION OR 80 CENTS A SHARE THIS COMPARES WITH OPERATING PROFIT OF 518 MILLION OR 66 CENTS A SHARE IN 1992 NEW YORK TIMES SAID ANNUAL OPERATING PROFIT FOR THE NEWSPAPER GROUP NOT INCLUDING THE EFFECT OF THE ACQUISITION OF THE BOSTON GLOBE AND THE 1993 SPECIAL ITEMS IS EXPECTED TO BE 123 MILLION TO 138 MILLION IN 1993 COMPARED WITH 129 MILLION IN 1992 SIMILARLY ANNUAL OPERATING PROFIT FOR THE MAGAZINE GROUP IS EXPECTED TO BE 11 MILLION TO 13 MILLION IN 1993 COMPARED WITH 10 MILLION IN 1992 AND BROADCASTING/INFORMATIONSERVICES GROUP IS EXPECTED TO BE 19 MILLION TO 21 MILLION IN 1993 COMPARED WITH 15 MILLION IN 1992 THE COMPANY ALSO SAID IT EXPECTS ITS FOREST PRODUCTS GROUP TO POST A LOSS OF 6 MILLION TO 8 MILLION IN 1993 COMPARED WITH A LOSS OF 9 MILLION IN 1992 NEW YORK TIMES HOLDS A MINORITY STAKE IN THE FOREST PRODUCTS GROUP 9312070102 931207 MARKETING & MEDIA DOW JONES SERVICE TO CARRY TEXT OF NEW YORK TIMES NEW YORK DOW JONES & CO SAID IT REACHED AGREEMENT WITH NEW YORK TIMES CO TO DISTRIBUTE MOST OF THE NEWS CONTENT OF THE NEW YORK TIMES NEWSPAPER ON ITS ELECTRONIC DOW JONES BUSINESS INFORMATION SERVICES MATERIAL CARRIED BY THE NEW YORK TIMES NEWS SERVICE WHICH DISTRIBUTES ABOUT 90 OF THE CONTENT OF THE DAILY NEW YORK TIMES WILL BE AVAILABLE ON THE SAME DAY OF PUBLICATION BEGINNING IN THE SPRING OF 1994 THE MATERIAL WILL BE AVAILABLE FOR 24 HOURS ON DOW JONES NEWS/RETRIEVAL AN ELECTRONIC INFORMATION SERVICE AND THROUGH DOWVISION WHICH DELIVERS MATERIAL DIRECTLY TO CUSTOMERS' INTERNAL COMPUTER SYSTEMS NEW YORK TIMES CO HAS AN AGREEMENT WITH MEAD CORP'S MEAD DATA CENTRAL INC UNIT TO ARCHIVE ITS MATERIAL IN THE NEXUS INFORMATION SERVICE AFTER 24 HOURS IN ADDITION TO THE FULL TEXT OF THE WALL STREET JOURNAL DOW JONES NEWS/RETRIEVAL OFFERS THE TEXT OF NUMEROUS PUBLICATIONS INCLUDING OTHER MAJOR NEWSPAPERS SUCH AS USA TODAY THE LOS ANGELES TIMES AND THE WASHINGTON POST DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE OTHER BUSINESS PUBLICATIONS ELECTRONIC NEWSWIRES DOW JONES TELERATE FINANCIAL INFORMATION AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS 9312070101 931207 COMMODITIES OIL FUTURES FALL AS MARKET REALIZES THAT OPEC IS UNLIKELY TO TAKE ANY ACTION TO BOOST PRICES BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES TUMBLED YESTERDAY AS THE MARKET CONTINUED TO ABSORB THE REALIZATION THAT OPEC IS UNLIKELY TO TAKE ANY ACTION TO PROP UP OIL PRICES THERE HAD BEEN SOME EXPECTATIONS THAT THE GROUP MIGHT CALL AN EMERGENCY MEETING BUT THOSE HOPES WERE DASHED LATE FRIDAY WHEN VENEZUELA'S OIL MINISTER SAID SUCH AN EVENT WAS UNLIKELY IN RECENT YEARS OIL MINISTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WOULD TYPICALLY ACT TO ENSURE CRUDE OIL PRICES WOULD REMAIN ABOVE 15 A BARREL PRICE DECLINES BELOW THAT LEVEL WERE SEEN AS UNDESIRABLE FOR THE ECONOMIES OF OPEC PRODUCERS BUT NOW WITHOUT OPEC INTERVENTION THERE AREN'T ANY SIGNPOSTS TO SHOW WHERE THE DECLINE WILL STOP SAID PAUL MLOTOK ANALYST FOR MORGAN STANLEY MARKETERS ARE WORRIED THAT PRICES WILL CONTINUE TO ERODE CRUDE FUTURES PRICES FOR JANUARY DELIVERY SLID YESTERDAY BY 40 CENTS A BARREL TO 1457 HEATING OIL PRICES FOR DELIVERY DURING THE SAME MONTH FELL BY 130 CENTS A GALLON TO 4456 CENTS WHILE JANUARY GASOLINE SLIPPED BY 111 CENTS A GALLON TO 4038 CENTS INVENTORIES APPEAR TO BE THE MAJOR PROBLEM ANALYSTS SAY EVEN WITH OPEC STICKING UNCHARACTERISTICALLY CLOSE TO ITS OUTPUT CEILING OF 245 MILLION BARRELS A DAY TOO MUCH OIL HAD ALREADY BEEN PUMPED AND PUT INTO STORAGE DURING THE SECOND AND THIRD QUARTERS OF THIS YEAR FOR PRICES TO RISE SIGNIFICANTLY MARKET DEMAND WOULD HAVE TO PROVIDE A DRAWDOWN OF INVENTORIES OF ONE MILLION BARRELS A DAY AT PRESENT HOWEVER ONLY 500000 BARRELS DAILY IS BEING TAKEN FROM INVENTORY TO SATISFY DEMAND ANALYSTS SAY SO WITH SO MUCH OIL AVAILABLE BUYERS ARE JUST STAYING ON THE SIDELINES IN ANTICIPATION OF LOWER PRICES AND BETTER BARGAINS ALSO DEPRESSING PRICES IS CONTINUED CONCERN THAT IRAQ MIGHT REENTER THE MARKET THE IRAQIS HAVE BEEN ONAGAIN AND THEN OFFAGAIN ABOUT PARTICIPATING IN THE ONETIME 16 BILLION SALE OF CRUDE FOR HUMANITARIAN PURPOSES OFFERED BY THE UNITED NATIONS SUCH A SALE COULD PUT A HEFTY 550000 BARRELS A DAY OF CRUDE INTO THE MARKET IF IT WENT ON FOR SIX MONTHS BUT INDUSTRY EXPERTS SAY IRAQ'S RETURN ISN'T IMMINENT IT COULD TAKE AS LONG AS SIX MONTHS TO BRING EVEN THE HUMANITARIAN SALE INTO PLAY ANALYSTS SAY IT'S UNLIKELY THAT IRAQ WILL RETURN TO THE MARKET THROUGH 1994 MARKET PARTICIPANTS ARE PUTTING TOO MUCH WEIGHT ON THAT POSSIBILITY SAID TOM BURNS MANAGER OF INTERNATIONAL ECONOMICS FOR CHEVRON CORP IN OTHER COMMODITY MARKETS YESTERDAY COFFEE FUTURES PRICES FELL AS TRADERS CONTINUED TO SPECULATE THAT AN EXPORTLIMITING AGREEMENT AMONG LATIN AMERICAN AND AFRICAN COFFEE PRODUCERS MAY NOT HOLD AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THE PRICE OF COFFEE FOR MARCH DELIVERY DECLINED 165 CENTS TO 7595 CENTS A POUND BRAZIL THE WORLD'S BIGGEST COFFEE PRODUCER PURCHASED 31000 BAGS OF COFFEE AT AN AUCTION FRIDAY AS PART OF THE EXPORTLIMITING AGREEMENT BUT THE MARKET SHRUGGED OFF THIS NEWS TRADERS ARE WORRIED THAT FINANCIAL PROBLEMS IN COLOMBIA AND OTHER LATIN AMERICAN COUNTRIES WILL FORCE THESE PRODUCERS TO ABANDON THEIR PLAN TO RETAIN 20 OF COFFEE EXPORTS IN AN EFFORT TO FORCE PRICES HIGHER GRAINS AND SOYBEANS WHEAT FUTURES PRICES ROSE AS BUYING OF US WHEAT BY FOREIGN USERS CONTINUED AT A BRISK PACE AT THE CHICAGO BOARD OF TRADE THE PRICE OF WHEAT FOR MARCH DELIVERY WAS UP THREE CENTS TO 364 A BUSHEL ANALYSTS SAID MANY FOREIGN COUNTRIES ARE TRYING TO LOCK IN SUPPLIES OF WHEAT THEY NEED IN ANTICIPATION OF A POTENTIAL RESOLUTION OF THE TALKS SURROUNDING THE GENERAL AGREEMENT ON TARIFFS AND TRADE A LIBERALIZED WORLDTRADE AGREEMENT IT IS FEARED WOULD CAUSE WORLD WHEAT PRICES TO RISE SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO AS A RESULT NORTH AFRICAN NATIONS THE PHILIPPINES AND PAKISTAN HAVE SIGNALED THEIR INTENTIONS TO BUY WHEAT 9312070100 931207 INTERNATIONAL EUROPEAN LABOR MOVEMENT LOSES GROUND RECESSION PLACES INDUSTRY ON NEW DEFIANT FOOTING BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL MECHELEN BELGIUM WHEN UNION FAITHFUL AT THE ALFRED TEVES GMBH PLANT HERE JOINED A GENERAL STRIKE THEY FIGURED THE COMPANY WOULD DO WHAT IT ALWAYS HAD DONE BEFORE CLOSE ITS DOORS INSTEAD THE AUTOPARTS MAKER BORROWED AN AMERICAN TACTIC RECRUITING 300 WORKERS TO BREAK THE PICKET LINE UNTIL NOW IT WAS ALWAYS POSSIBLE FOR UNIONS TO ASK FOR MORE BECAUSE PRODUCTIVITY AND THE ECONOMY WERE GROWING RAPIDLY SAYS PLANT MANAGER NORBERT STORME WHO RALLIED STRIKEBREAKERS IN A PARKING LOT DOWN THE ROAD THESE DAYS HE SAYS WE HAVE TO REDUCE OUR LIVING STANDARD AND THE UNIONS HAVE TO ACCEPT IT THAT'S THE MESSAGE TRADE UNIONS ARE HEARING THROUGHOUT EUROPE THE LABOR MOVEMENT'S LAST BASTION SPURRED BY SEVERE RECESSION AND A RISING RIGHTWING CHALLENGE TO LABOR EUROPEAN EMPLOYERS ARE CASTING OFF FOUR DECADES OF CLOSE COOPERATION WITH UNIONS AND TAKING ON THEIR WORKERS WITH NEW VIGOR UNIONS ARE FIGHTING BACK WITH STRIKES AND PROTESTS BUT BECAUSE THEY HAVE BEEN SLOW TO ADJUST TO BUSINESS GLOBALIZATION AND WORKFORCE CHANGES THEY ARE HAVING TROUBLE HOLDING THEIR GROUND THE ECONOMIC MISERY THREATENS TO UNDERMINE THE SOCIAL CONSENSUS BETWEEN UNIONS GOVERNMENTS AND INDUSTRY THAT HAS BEEN IN PLACE SINCE THE SECOND WORLD WAR TRADE UNIONS ARE GOING THROUGH A VERY DEEP STRUCTURAL CRISIS SAYS DENIS MACSHANE ASSOCIATE DIRECTOR OF THE EUROPEAN POLICY INSTITUTE IN GENEVA WITH PRIVATIZATION AND RECESSION EMPLOYERS DON'T WANT TO GIVE IN TO UNIONS ANY MORE WITH 18 MILLION OUT OF WORK THEY DON'T HAVE TO IN GERMANY VOLKSWAGEN AG TOLD THE IG METALL UNION THAT IT WOULD CUT 30000 JOBS UNLESS ITS MEMBERS ACCEPTED A FOURDAY WORKWEEK AND A 20 PAY CUT BASF AG AND LUFTHANSA ARE ALSO FORCING UNIONS TO ACCEPT LAYOFFS IN SPAIN WHERE UNEMPLOYMENT HAS HIT 224 THE GOVERNMENT HAS THREATENED TO FREEZE CIVIL SERVICE WAGES ELIMINATE LIFETIME EMPLOYMENT AND SHORTEN THE WORKWEEK WITH OR WITHOUT UNION CONSENT THERE'S A REALIZATION EVEN AMONG LEFT GOVERNMENTS THAT SOMETHING HAS TO CHANGE IN THE LABOR MARKET SAYS ZYGMUNT TYSZKIEWICZ SECRETARYGENERAL OF THE UNION OF INDUSTRIAL AND EMPLOYERS CONFEDERATIONS OF EUROPE IF UNIONS PERSIST IN HANGING ON TO EVERYTHING THEY'VE GAINED OVER THE YEARS AND NOT CHANGING THEY WILL BE TREATED AS IRRELEVANT THE THREAT FROM ONCEFRIENDLY GOVERNMENTS AND EMPLOYERS HAS PREDICTABLY RILED WORKERS AFTER A DECLINE IN THE NUMBER AND SEVERITY OF STRIKES THROUGH THE LAST DECADE THE NUMBER OF STOPPAGES ROSE LAST YEAR IN FRANCE GERMANY AND SPAIN THIS YEAR LOOKS WORSE IN FRANCE IN OCTOBER STRIKING WORKERS CLOSED PARIS AIRPORTS AND FORCED THE GOVERNMENT TO BACK DOWN FROM PLANS TO CUT 4000 JOBS AT MONEYLOSING AIR FRANCE MORE RECENTLY FRENCH COAL MINERS TRADED BLOWS WITH RIOT POLICE OVER LAYOFFS IN GERMANY 120000 BUILDING WORKERS TURNED OUT TO PROTEST THE LOSS OF THEIR WINTER LAYOFF PAYMENTS IN ITALY AND BELGIUM THE UNRAVELING OF GOVERNMENTS' SOCIAL PACTS WITH UNIONS LED TO GENERAL STRIKES SPANISH WORKERS HAVE ALSO THREATENED A GENERAL STRIKE THERE'S BEEN MORE HEADLINETYPE MOBILIZATION SAYS DAVID FODEN RESEARCH OFFICER FOR THE EUROPEAN TRADE UNION INSTITUTE NOBODY EXPECTS EUROPEAN UNIONS TO FADE FROM THE SCENE AS AMERICAN UNIONS DID IN THE LAST DECADE WITH NEARLY 50 MILLION MEMBERS IN WESTERN EUROPE TRADE UNIONS CLAIM 40 OF THE WORK FORCE HERE COMPARED WITH ABOUT 15 IN THE US AND 25 IN JAPAN JACQUES DELORS AND OTHER TOP POLITICIANS IN EUROPE WERE ONCE UNION OFFICIALS AND EVEN THE CONSERVATIVE CHRISTIAN DEMOCRATS SUPPORT UNIONS IN GERMANY THE CONSTITUTION PROTECTS UNION REPRESENTATION BUT LABOR HAS BEEN WEAKENING FOR SOME TIME A 1991 STUDY BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT FOUND THAT ALL EUROPEAN COUNTRIES BUT SWEDEN AND FINLAND SHOWED DECLINES IN UNIONIZATION BETWEEN 1980 AND 1988 IN BRITAIN REPRESENTATION HAS PLUNGED TO ABOUT 33 OF THE WORK FORCE NOW FROM OVER 50 IN 1980 FRANCE'S REPRESENTATION DROPPED BELOW 12 FROM 19 ITALY'S TO 39 FROM 50 AND HOLLAND'S TO 26 FROM 40 AS IN THE US EUROPEAN UNIONS HAVE HAD TROUBLE SPREADING THEIR POPULARITY FROM BLUECOLLAR FACTORY WORKERS TO OFFICE AND SERVICE WORKERS THEY'VE ALSO MADE LITTLE EFFORT TO JOIN FORCES IN EUROPE PREFERRING TO RELY ON AN OUTDATED COUNTRYBYCOUNTRY STRATEGY NOW BRITAIN HOPES TO SPREAD ITS LABOR POLICIES TO THE CONTINENT AND IT IS FINDING AN AUDIENCE AMONG THE RISING RIGHTWING LIBERAL PARTIES WHICH HAVE THRIVED AFTER THE FALL OF COMMUNISM AND THE WEAKENING OF SOCIALISTS IN WESTERN EUROPE UNIONS SEE THE BRITISH POSITION BEING ECHOED IN THE THINGS EUROPEAN COMPANIES ARE SAYING SAYS DAVID FEICKERT BRUSSELS REPRESENTATIVE FOR BRITAIN'S TRADE UNION CONGRESS IT IS QUITE ALARMING EVEN IN BELGIUM WHERE UNION MEMBERSHIP HAS HELD FIRM AT 55 OF THE WORK FORCE LABOR IS UNDER SEIGE PRIME MINISTER JEANLUC DEHAENE FACING A NATIONAL DEBT THAT IS 125 OF GDP AND UNEMPLOYMENT OF ABOUT 12 CALLED FOR CUTS IN SOCIAL BENEFITS AND WAGEINDEX INCREASES AND AN INCREASE IN VALUEADDED TAXES THE UNIONS RESPONDED WITH A GENERAL STRIKE THAT SOME HAVE CALLED THE COUNTRY'S LARGEST SINCE 1936 SHUTTING DOWN THE AIRPORT SEAPORTS TRAINS TELEVISION STATIONS ALL FIVE AUTO MAKERS AND MOST STORES BANKS AND SCHOOLS BUT THE UNIONS AREN'T EXACTLY CELEBRATING THOUGH THE GOVERNMENT AGREED TO TALK WITH THE UNIONS ABOUT ITS AUSTERITY PLAN THE PROGRAM HAS ALREADY CLEARED PARLIAMENT AND CAN'T BE CHANGED MUCH THERE'S ALSO NO SIGN THAT EMPLOYERS WILL RELAX PRESSURE ON UNIONS WE CAN'T PLAY AROUND ANYMORE SAYS JAN VAN HOLM LABOR DIRECTOR FOR THE FEDERATION OF BELGIAN INDUSTRY WHICH BELIEVES THE GOVERNMENT'S CUTBACKS DON'T GO FAR ENOUGH IN GERMANY FRANCE AND THE US THEY'D BE ONLY TOO HAPPY TO TAKE THE BUSINESS WITH MOST OF BELGIAN BUSINESS FOREIGN OWNED COMPANIES ARE THREATENING TO RELOCATE FACTORIES JAPANESE AND US BUSINESSES HAVE BEGUN CHALLENGING UNIONS IN BELGIUM'S COURTS THE TENSION IS EVIDENT HERE IN MECHELEN A SMALL TOWN ABOUT 20 MILES NORTH OF BRUSSELS STRIKERS ASSEMBLE AT 430 ON A FROSTY FOGGY MORNING IN HARDHATS AND PONCHOS HUDDLED AROUND THE BURNING TIRES AT 11 AM MR STORME AND SIX BUSLOADS OF WORKERS APPROACH THE ROADBLOCK AFTER A BRIEF CONFRONTATION WITH STRIKERS HE AGREES TO SEND THE WORKERS HOME TO AVOID VIOLENCE BUT HE DOESN'T SEE THE CONFLICT ENDING HERE WE HAVE TO DO SOMETHING TO BE MORE COMPETITIVE MR STORME SAYS TEVES A UNIT OF ITT HOLDING CO'S GERMAN SUBSIDIARY SAYS ITS CUSTOMERS ARE ALL OUTSIDE OF BELGIUM WE CAN'T AFFORD IN THIS DIFFICULT ECONOMIC SITUATION TO FURTHER HASSLE THESE PEOPLE WE HAVE TO DELIVER EVEN ON THE PICKET LINE SOME DOUBT THE EFFORT WE'VE HAD SOME BIG CROWDS BUT THE STRIKES DON'T DO ANYTHING SAYS A TEVES OFFICE WORKER SIPPING COFFEE WE WANT A LOT OF CHANGES BUT IT'S IMPOSSIBLE THE UNION JUST ISN'T AS STRONG AS IT USED TO BE 9312070099 931207 WHO'S NEWS SOUTHERN CO TAPS DAHLBERG AS PRESIDENT BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA SOUTHERN CO MARKING THE CLOSE OF A TURBULENT PERIOD NAMED AW DAHLBERG PRESIDENT AND SAID HE WILL SUCCEED EDWARD L ADDISON AS CHIEF EXECUTIVE OFFICER MR ADDISON 63 YEARS OLD HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OF THE UTILITY HOLDING COMPANY SINCE 1983 YESTERDAY HE WAS ELECTED TO THE UNOCCUPIED POSITION OF CHAIRMAN SIGNALING THE BEGINNING OF THE MANAGEMENT TRANSITION A SOUTHERN SPOKESMAN SAID THE COMPANY HAS A MANDATORY EXECUTIVE RETIREMENT AGE OF 65 MR ADDISON WILL RETIRE AFTER HE TURNS 65 IN FEBRUARY 1995 THE SPOKESMAN SAID AT THAT TIME THE 53YEAROLD MR DAHLBERG WILL ASSUME THE POSITION OF CHIEF EXECUTIVE MR DAHLBERG CHIEF EXECUTIVE AND PRESIDENT OF SOUTHERN'S GEORGIA POWER SUBSIDIARY AND H ALLEN FRANKLIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SOUTHERN CO SERVICES INC IN BIRMINGHAM ALA WERE SEEN AS THE FRONTRUNNERS FOR THE CHIEF EXECUTIVE'S SLOT IN EMERGING AS THE APPARENT WINNER MR DAHLBERG BRINGS WITH HIM 33 YEARS OF EXPERIENCE AT SOUTHERN INDEED IN RECENT YEARS MR DAHLBERG ALONG WITH MR FRANKLIN HAVE MORE OR LESS BEEN ORCHESTRATING THE FIRM SAID NATHAN PARTAIN AN ANALYST WITH DUFF & PHELPS IN NEW YORK MR ADDISON HAD BEEN PUSHING MORE AND MORE RESPONSIBILITY DOWN TO THAT LEVEL THE DEPARTURE OF MR ADDISON WILL CLOSE THE DOOR ON A PARTICULARLY TUMULTUOUS PERIOD FOR THE COMPANY ANALYSTS SAID IN THE PAST FIVE YEARS SOUTHERN CO HAS COME UNDER INVESTIGATION BY SEVERAL FEDERAL AGENCIES INCLUDING THE FEDERAL BUREAU OF INVESTIGATION AND THE INTERNAL REVENUE SERVICE LAST YEAR THE US ATTORNEY'S OFFICE DECIDED AGAINST SEEKING A CRIMINAL INDICTMENT OF THE COMPANY FOR CERTAIN PENSIONFUND TRANSACTIONS THAT SOUTHERN CO STEERED TO MR ADDISON'S SON SCOTT WHEN HE WAS A BROKER AT KIDDER PEABODY & CO IN THE PAST TWO YEARS THE COMPANY APPEARS TO HAVE REBOUNDED IN 1992 SOUTHERN POSTED EARNINGS OF 953 MILLION OR 302 A SHARE UP 88 FROM THE 876 MILLION OR 278 A SHARE REPORTED A YEAR EARLIER LAST YEAR SOUTHERN ACQUIRED A STAKE IN A BAHAMIAN FACILITY IT IS ALSO CHASING PROSPECTS IN MEXICO AUSTRALIA AND BEYOND IN A GLOBAL EXPANSION THAT ANALYSTS ARE APPLAUDING I WANT TO CONTINUE TO LOOK FOR MORE BUSINESS OVERSEAS MR DAHLBERG SAID HE ADDED HOWEVER THAT THE COMPANY WILL ALSO CONTINUE TO FOCUS ON ITS CORE BUSINESSES IN THIS COUNTRY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SOUTHERN CLOSED AT 43 UP 625 CENTS 9312070098 931207 TESORO PETROLEUM AMENDS PLAN SAN ANTONIO TESORO PETROLEUM CORP FILED AN AMENDMENT TO ITS PREVIOUS REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION RELATING TO A RECAPITALIZATION PLAN THE COMPANY SAID IT PLANS TO AMEND ITS PREVIOUS OFFER TO EXCHANGE NEW 975 SECURED NOTES DUE DEC 1 2000 FOR ABOUT 108 MILLION OF 1275 DEBENTURES INSTEAD THE COMPANY NOW PROPOSES TO EXCHANGE DEBENTURES OF A HIGHER INTEREST RATE THAN 975 BUT IT HASN'T YET DETERMINED THE NEW RATE IN ADDITION THE COMPANY SAID THE EXCHANGE WILL BE FOR 54 MILLION OF 1275 DEBENTURES HALF THE AMOUNT ORIGINALLY PLANNED IN ANOTHER CHANGE TO THE RECAPITALIZATION PLAN TESORO SAID IT WON'T RECLASSIFY CERTAIN PREFERRED SHARES INTO A NEW SERIES OF PREFERRED AS PREVIOULY ANNOUNCED INSTEAD IT PLANS TO RECLASSIFY CERTAIN PUBLIC PREFERRED SHARES INTO COMMON STOCK TERMS OF THAT RECLASSIFICATION HAVEN'T YET BEEN DETERMINED A SPOKESMAN SAID 9312070097 931207 ABREAST OF THE MARKET STOCKS CLOSE AT 371021 BUOYED TO NEAR RECORD LEVEL BY BONDS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE FINISHED JUST SHY OF A NEW HIGH AFTER SPENDING MUCH OF THE DAY IN RECORD TERRITORY BUOYED BY ROBUST GAINS IN BONDS THE DOW INDUSTRIALS EDGED UP 614 POINTS TO 371021 A FRACTION AWAY FROM THE RECORD 371077 STANDARD & POOR'S 500STOCK INDEX ADDED 154 TO 46643 ALSO APPROACHING A NEW HIGH BUT THE NASDAQ COMPOSITE INDEX SLIPPED 113 TO 77109 AS INVESTORS HAMMERED AWAY AT TECHNOLOGY STOCKS IN THE WAKE OF SOME DOWNBEAT COMMENTS ABOUT THE SEMICONDUCTOR INDUSTRY FROM MERRILL LYNCH VOLUME ON THE NEW YORK STOCK EXCHANGE BALLOONED TO 292 MILLION SHARES FROM 2683 MILLION SHARES FRIDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1219 TO 866 JOSEPH MCALINDEN STOCK STRATEGIST AT DILLON READ SUGGESTED THAT THE RALLY IN STOCKS MAY HAVE FADED BECAUSE INVESTORS ARE GETTING VERY NERVOUS ABOUT MAKING BIG BETS ON THE MARKET WITH STOCK PRICES SO HIGH WE ARE THREEPLUS YEARS INTO A BULL MARKET AND THERE'S A LOT OF APPREHENSION BECAUSE THERE HASN'T BEEN A CORRECTION SAID MR MCALINDEN BUT MR MCALINDEN SAID HE EXPECTS STOCKS WILL POWER HIGHER IN THE NEXT FEW DAYS CATCHING UP WITH BONDS AS HAS BEEN THE CASE FOR MOST OF THIS YEAR MY SENSE IS THAT ONCE INVESTORS DIGEST THIS DROP IN BOND YIELDS YOU WILL GET SOME BUYING COMING INTO THE MARKET SAID MR MCALINDEN WHO IS ADVISING HIS CLIENTS TO SELL INTO ANY RALLY BECAUSE HE EXPECTS A CORRECTION THOUGH LOWER INTEREST RATES PROVIDED A GENTLE HEADWIND FOR THE STOCK MARKET YESTERDAY A BRUTAL SELLOFF IN THE SEMICONDUCTOR GROUP TURNED OUT TO BE A DRAG ON STOCK PRICES IN NASDAQ STOCK MARKET TRADING INTEL TUMBLED 4 TO 59 1/2 WHILE APPLIED MATERIALS DROPPED 2 TO 35 3/4 ON THE BIG BOARD MEANWHILE MOTOROLA SHED 2 TO 94 1/8 TEXAS INSTRUMENTS 2 TO 62 1/8 MICRON TECHNOLOGY 1 1/2 TO 46 1/2 AVNET 1 TO 35 7/8 ANALOG DEVICES 1 TO 22 3/8 AND NATIONAL SEMICONDUCTOR 5/8 TO 15 THE SHARP LOSSES CAME AFTER MERRILL LYNCH TECHNOLOGY ANALYST THOMAS KURLAK SLASHED NEARTERM INVESTMENT RATINGS ON INTEL AND MOTOROLA TO NEUTRAL FROM BUY THE SELLING IN SEMICONDUCTOR STOCKS SPILLED OVER TO PRETTY MUCH EVERYTHING I AM LOOKING AT A LOT OF RED ON MY SCREEN SAID ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL GROUP WHICH SPECIALIZES IN TECHNOLOGY ISSUES DREYFUS JUMPED 1 7/8 TO 46 3/8 AFTER THE NEW YORK MUTUAL FUND COMPANY AGREED TO BE ACQUIRED BY MELLON BANK IN A 185BILLION STOCK SWAP SHARES OF MELLON IN PITTSBURGH SKIDDED 4 3/8 TO 53 THE BANK SAID THE TRANSACTION WILL SLOW THE GROWTH OF ITS PERSHARE EARNINGS IN THE NEXT TWO YEARS HANSON PLC'S AMERICAN DEPOSITARY RECEIPTS WERE THE MOST ACTIVELY TRADED ISSUE SLIPPING 1/4 TO 19 3/8 MORE THAN 31 MILLION ADRS CHANGED HANDS COMPARED WITH AVERAGE DAILY VOLUME OF ABOUT 15 MILLION ADRS ANALYSTS SAID MOST OF THE TRADING IN THE ADRS STEMMED FROM A TECHNICAL DIVIDEND PLAY ORCHESTRATED BY BEAR STEARNS BEAR STEARNS DIDN'T RETURN CALLS TO CONFIRM OR DENY THE TRADES LAST WEEK HANSON SAID IT WAS MAINTAINING ITS CURRENT DIVIDEND TYPICALLY THE COMPANY RAISES THE PAYOUT IN DECEMBER SEAGRAM SAGGED 3/4 TO 26 3/4 IN HEAVY TRADING ONE OF THE THREE TRUSTS THAT MANAGES FINANCES FOR SEAGRAM'S COCHAIRMAN CHARLES ROSNER BRONFMAN SOLD 37 MILLION SEAGRAM SHARES FOR NEARLY 100 MILLION THE SALE REDUCES THE BRONFMAN FAMILY'S STAKE IN THE COMPANY BY 6 TO ABOUT 58 MILLION SHARES ADRS OF MEXICAN COMPANIES JUMPED ON REPORTS THAT MORGAN STANLEY'S INFLUENTIAL STOCK STRATEGIST BARTON BIGGS WILL INCREASE MEXICO'S WEIGHTING IN THE BROKERAGE FIRM'S EMERGING MARKETS MODEL PORTFOLIO TO 13 FROM 10 SOURCES SAID MR BIGGS IS RECOMMENDING PURCHASE OF BLUE CHIPS SUCH AS TELEFONOS DE MEXICO WHICH ROSE 1 5/8 TO 59 3/4 ON HEAVY VOLUME OF 52 MILLION SHARES MR BIGGS COULD NOT BE REACHED FOR COMMENT BUT DETAILS OF HIS ASSET ALLOCATION CHANGES ARE EXPECTED TO BE RELEASED THURSDAY ADRS OF COMPANIES RELATED TO HONG KONG AND CHINA RALLIED AFTER A CHINESE GOVERNMENT REPRESENTATIVE SAID THE FUTURE OF HONG KONG WILL BE BRIGHT AND LIMITLESS AFTER CHINA TAKES CONTROL OF THE BRITISH COLONY HONG KONG TELECOMMUNICATIONS JUMPED 3 3/4 TO 60 7/8 SHANGHAI PETROCHEMICAL ADDED 3 1/8 TO 39 1/8 AND CHINA TIRE INCREASED 1 7/8 TO 21 AMERADA HESS LOST 5/8 TO 45 1/8 AFTER OPPENHEIMER & CO ANALYST PAUL TING SAID HE EXPECTS BIGGER OPERATING LOSSES FOR THE NEW YORK OIL AND GAS COMPANY THIS YEAR THE ANALYST SAID THE RECENT DROP IN CRUDE OIL PRICES IS SQUEEZING AMERADA HESS'S PROFIT MARGINS DAVE KANSAS CONTRIBUTED TO THIS ARTICLE 9312070096 931207 DIVIDEND NEWS FUND AMERICAN ENTERPRISES HOLDINGS INC FUND AMERICAN ENTERPRISES HOLDINGS INC NORWICH VT SAID IT WILL PROCEED WITH ITS PLANNED DISTRIBUTION TO SHAREHOLDERS OF ABOUT 75 OF ITS NEWLY CAPITALIZED WHITE RIVER CORP UNIT THE INVESTMENT COMPANY SAID IT DECLARED A DIVIDEND OF ONE WHITE RIVER SHARE FOR EVERY TWO SHARES OF FUND AMERICAN HELD PAYABLE DEC 22 TO SHAREHOLDERS OF RECORD DEC 14 THE COMPANY SAID CASH WILL BE PAID IN LIEU OF FRACTIONAL SHARES FUND AMERICAN SAID THE FAIR MARKET VALUE OF THE WHITE RIVER DISTRIBUTED STOCK WILL BE TREATED AS A TAXABLE DIVIDEND FOR FEDERAL INCOMETAX PURPOSES WHITE RIVER ESTIMATES THAT ITS NOV 30 BOOK VALUE WAS 2850 A SHARE OR 1425 A FUND AMERICAN SHARE FUND AMERICAN SAID IT HAS 95 MILLION SHARES OUTSTANDING WHITE RIVER AN INVESTMENT COMPANY BEGAN OPERATION WHEN IT WAS CAPITALIZED ON SEPT 24 WITH INITIAL SHAREHOLDER EQUITY OF 200 MILLION 9312070095 931207 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY NOVEMBER 24 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9312070094 931207 TECHNOLOGY & SCIENCE IN THE LAB FIRMS GIVE GREEN' CHEMISTS GREEN LIGHT BY JAMES P MILLER STAFF REPORTER ST LOUIS THE CHEMICAL TRADE KNOWS IT AS THE SEARCH FOR BENIGN BY DESIGN PRODUCTION METHODS HAVING CAPTURED MANY OF THE TOXINS FROM ITS SMOKESTACKS AND WASTE PIPES THE CHEMICAL INDUSTRY IS TURNING TO THE EMERGING GREEN CHEMISTRY MOVEMENT TO STOP POLLUTION AT ITS SOURCE THE BEST POLLUTIONABATEMENT PROGRAM IS DON'T MAKE IT IN THE FIRST PLACE SAYS A DUPONT CO SPOKESMAN THAT ALSO SAVES THE HEFTY COSTS OF TRANSPORTING AND TREATING THE CAPTURED POLLUTANTS MONSANTO CO TARGETING WHAT IT CALLS A DIRTY DOZEN OF SUCH PRODUCTION CHEMICALS AND BYPRODUCTS IS PURSUING ENVIRONMENTALLY FRIENDLIER SUBSTITUTES ALONG WITH OTHER MAJOR CHEMICAL MAKERS AND IT HAS SCORED SOME PROMINENT EARLY SUCCESSES ONE MONSANTO RESEARCHER 32YEAROLD MICHAEL STERN IN 1991 FOUND A NOVEL WAY TO SYNTHESIZE 4AMENODIPHENYLAMINE A COMMON CHEMICAL USED IN MANUFACTURING RUBBER WITHOUT PRODUCING HAZARDOUS BYPRODUCTS LIKE OTHER SCIENTISTS PRACTICING THE NEW CHEMISTRY DR STERN ADMITS TO OCCASIONALLY FEELING HIS WAY THE CHEMICAL PATHWAY HE DISCOVERED WAS LIKE FALLING OFF A LOG HE SAYS ONCE HE FIGURED OUT THAT THE COMPOUND'S REDDISH HUE REPRESENTED A VARIATION OF A WELLUNDERSTOOD CHEMICAL FORMULATION UNTIL THIS EPIPHANY DR STERN SAYS HE HADN'T REALIZED THAT HIS EXPERIMENTS HAD IN FACT BEEN PRODUCING THE DESIRED 4NDPA FOR A LONG TIME THE SAME FREEWHEELING APPROACH HAS HELPED MONSANTO RESEARCHER DENNIS P RILEY WHOSE LAB IS JUST DOWN THE HALL IN MONSANTO'S BUILDING Q HE IS TINKERING WITH A PATENTED METHOD THAT MAY PERMIT POLYURETHANE MAKERS TO SUBSTITUTE HARMLESS CARBON DIOXIDE FOR PHOSGENE A GAS SO POISONOUS IT HAS BEEN USED AS A CHEMICAL WEAPON MONSANTO DOESN'T EVEN MAKE POLYURETHANE BUT DENNIS IS A GUY YOU GIVE EXTRA ROPE TO SAYS DR PHILIP H BRODSKY DIRECTOR OF RESEARCH AND ENVIRONMENTAL TECHNOLOGY HE HAD A FANTASTIC IDEA DR RILEY SAYS HE HAD BEEN THINKING ABOUT NORMALLY BALKY CARBON DIOXIDE'S POTENTIAL AS A BASIC CHEMICAL BUILDINGBLOCK FOR 20 YEARS AT A CHRISTMAS VACATION IN DENVER IN 1988 DR RILEY RECALLS HE AND A SCIENTIST FRIEND WERE HAVING A BEER THE FRIEND TOLD HIM ABOUT HIS OWN PROBLEMS WORKING WITH POLYURETHANE I SAID WHAT'S A POLYURETHANE' AND HE DREW ME THE MOLECULE ON A COCKTAIL NAPKIN DR RILEY SAYS I SAW HOW WE COULD PUT IT TOGETHER WITHOUT USING PHOSGENE DR RILEY'S PROCESS INVOLVES MIXING CARBON DIOXIDE WITH AN AMMONIA DERIVATIVE KNOWN AS AN AMINE AND A BASE THAT PRODUCES CARBAMATES OR SPECIALIZED SALTS WHICH CAN THEN BE FORCED INTO A CONTROLLED REACTION THAT YIELDS EITHER URETHANE OR A PRECURSOR THE NEW APPROACH DOESN'T REQUIRE THE HIGH HEAT AND PRESSURE OR THE PROCESSING TIME OF AS MUCH AS 20 HOURS THAT PHOSGENIZATION REQUIRES MONSANTO IS NOW FIELDING LICENSING INQUIRIES SOME OF THE QUERIES COME FROM CHEMICAL CONCERNS IN COUNTRIES SUCH AS TAIWAN WHERE NEW PLANTS THAT WOULD USE PHOSGENE CAN'T BE BUILT BECAUSE OF SAFETY REGULATIONS NO MATTER HOW INGENIOUS THEIR LAB WORK HOWEVER ALL GREEN CHEMISTS FACE THE PROBLEM OF COMPARATIVE COST THE CHEMICAL INDUSTRY HAS BILLIONS OF DOLLARS OF EQUIPMENT ALREADY IN PLACE OR IN THE GROUND GIVEN THE CYCLICAL INDUSTRY'S CURRENT PRICE WEAKNESS AND EXCESS CAPACITY NEW PLANTS THAT COULD USE THE BENIGN DESIGNS AREN'T EXPECTED TO GO UP ANY TIME SOON THE MOMENT A CHEMIST PUTS PENCIL TO PAPER TO DESIGN THE WAY A CHEMICAL PRODUCT WILL BE MADE HE IS ALSO INTRINSICALLY DECIDING WHETHER TOXIC CHEMICALS WILL BE USED OR GENERATED AND WHAT THE WASTEDISPOSAL COSTS WILL BE DR PAUL ANASTAS HEAD OF THE NEW CHEMICALS BRANCH OF THE ENVIRONMENTAL PROTECTION AGENCY'S OFFICE OF TOXICS AND POLLUTION PREVENTION TOLD THE AMERICAN CHEMICAL SOCIETY RECENTLY GREEN SCIENTISTS FACE CHALLENGES IN THE THEORETICAL REALM AS WELL OFTEN THEIR WORK FLIES IN THE FACE OF DECADES OF RESEARCH ON THE MOST EFFECTIVE WAYS TO ALTER THE CHEMICAL BONDS OF A FEEDSTOCK THE PROBLEM IS THAT THE MOST RELIABLE SUBSTANCES HISTORICALLY ARE THE ONES MOST LIKELY TO WREAK ENVIRONMENTAL DAMAGE IF RELEASED FOR EXAMPLE DR STERN'S USE OF NITROBENZENE AS A SUBSTITUTE FOR CHLORINE WOULD REDUCE THE USE OF A COMPOUND THAT IS DRAWING INCREASING FIRE FROM ENVIRONMENTALISTS HIS DISCOVERY WOULD ELIMINATE MONSANTO'S TENS OF MILLIONS OF POUNDS OF HARDTODISPOSEOF CHLORINATED BRINE THAT EMERGES AS AN UNWANTED BYPRODUCT OF THE PRODUCTION PROCESS THE STANDARD PRACTICE FOR MAKING 4NDPA INVOLVES ACTIVATING CERTAIN CARBONHYDROGEN BONDS WITH CHLORINE THE CHLORINE ATOMS TENDERIZE THE MOLECULES SETTING THEM UP FOR FURTHER REACTIONS BUT DON'T FIND THEIR WAY INTO THE FINAL PRODUCT HENCE THE CHLORINATED BRINE DR STERN'S ALTERNATIVE ROUTE REPRESENTS A REAL BREAKTHROUGH SAYS MR BRODSKY DR STERN'S PROCESS IS NOW BEING STUDIED AT A NEARBY PILOT PLANT AND INITIAL RESULTS SUGGEST THE NEW REACTION WHICH USES CHEAPER RAW MATERIALS AND REQUIRES FEWER INTERMEDIATE STEPS WOULD WORK ON A COMMERCIAL SCALE 9312070093 931207 FOREIGN EXCHANGE DOLLAR EASES AGAINST MOST CURRENCIES AS FRUSTRATED BULLS TAKE THEIR PROFITS BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR EASED AGAINST MOST MAJOR CURRENCIES MONDAY AS FRUSTRATED BULLS TRIMMED THEIR POSITIONS IN THE US CURRENCY THE SITUATION BENEFITED THE SWISS FRANC WHICH ROSE SHARPLY AS PLAYERS SHIFTED FUNDS FROM THE DOLLAR THE MARK AND THE YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17015 MARKS DOWN FROM 17200 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10790 YEN DOWN FROM 10845 YEN STERLING WAS TRADING AT 15035 UP FROM 14920 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10785 YEN AND AT 17017 MARKS LAST WEEK MANY INVESTORS HAD BET THAT A STEADY STREAM OF US ECONOMIC DATA RELEASES WOULD FINALLY GIVE THE DOLLAR THE STAMINA TO BREAK SHARPLY HIGHER AGAINST THE MARK BUT AFTER WATCHING EACH DOLLAR RALLY SPUTTER FOLLOWING ONLY FEEBLE ADVANCES TRADERS TIRED OF THE WAITING GAME AND CASHED IN THEIR POSITIONS THAT PROFITTAKING SENT THE DOLLAR LOWER FRIDAY EVEN IN THE MIDST OF A VERY POSITIVE REPORT ON US JOB GROWTH DOLLAR SALES CONTINUED THROUGH MONDAY'S TRADING AS TRADERS TESTED LOWER LEVELS TO TRY TO ATTRACT NEW BUYING INTEREST PEOPLE ARE LOOKING AT THE DOLLAR WITH A CERTAIN DEGREE OF FRUSTRATION SAID JOHN NELSON DIRECTOR OF GLOBAL FOREIGN EXCHANGE AT BARCLAYS BANK IN NEW YORK YOU'RE SEEING PEOPLE EXITING THEIR LONGDOLLAR POSITIONS HE ADDED TRADERS EMPHASIZED THAT THE DOLLAR'S SLIDE ISN'T EXPECTED TO LAST LONG WITH STRONG US ECONOMIC GROWTH AND FALLING EUROPEAN INTEREST RATES PUSHING UP THE US CURRENCY TOWARD 180 MARKS SOONER OR LATER THERE IS STILL A BULLISH TREND FOR THE DOLLAR SAID RICH SHIMOKAWA FOREIGNEXCHANGE MANAGER AT SUMITOMO BANK LTD IN NEW YORK THIS IS A HEALTHY CORRECTION BUT FOR THE NEXT FEW DAYS THE DOLLAR IS LIKELY TO DECLINE UNTIL THE MARKET GETS TO A POSITION WHERE WE CAN SEE FRESH DOLLAR BUYING BARCLAYS'S MR NELSON SAID HE PREDICTED THAT THE DOLLAR COULD DROP BELOW 168 MARKS BEFORE THAT MIGHT OCCUR MEANWHILE THE SWISS FRANC ROSE STRONGLY ACROSS THE BOARD TRADERS SAID THE BUYING WAS FUELED BY THE MARKET'S BELIEF THAT INTEREST RATES IN SWITZERLAND WON'T FALL AS FAR OR AS FAST AS THOSE IN GERMANY WHILE THE SWISS ECONOMY LOOKS MORE PROMISING THERE'S A PERCEPTION WITHIN EUROPE THAT THE SWISS FRANC IS STRONG AND WILL REMAIN STRONG FROM AN INTERESTRATE PERSPECTIVE MR NELSON SAID THE SWISS FRANC RACKED UP PARTICULARLY STRONG GAINS AGAINST THE YEN WHICH WEAKENED AGAINST MOST CURRENCIES EXCEPT THE DOLLAR AS PLAYERS DUMPED DECLINING JAPANESE ASSETS AND PREPARED FOR ANOTHER INTEREST RATE CUT BY THE BANK OF JAPAN LATE IN NEW YORK THE DOLLAR TRADED AT 14620 SWISS FRANCS DOWN FROM 14900 FRANCS FRIDAY ELSEWHERE THE LIRA REBOUNDED AND FOREIGN INVESTORS RETURNED TO ITALIAN ASSETS AFTER RESULTS FROM WEEKEND MUNICIPAL ELECTIONS WEREN'T AS ALARMING AS MANY HAD FEARED 9312070092 931207 WHO'S NEWS BERRY PETROLEUM CO BERRY PETROLEUM CO TAFT CALIF THOMAS JAMIESON AND JOHN HAGG WERE ELECTED DIRECTORS OF THIS OIL AND GAS EXPLORATION AND PRODUCTION CONCERN MR JAMIESON 50 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF JACO OIL CO HIS APPOINTMENT INCREASES THE BOARD TO 12 MEMBERS MR HAGG 46 CHAIRMAN AND PRESIDENT OF NORTHSTAR ENERGY CORP SUCCEEDS JOHN HAWKINS 79 WHO RESIGNED 9312070091 931207 POLITICS & POLICY US PARTNERS AGREE TO INVITE RUSSIA TO JOIN LARGER SPACESTATION PROJECT BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US EUROPE CANADA AND JAPAN AGREED TO ASK RUSSIA TO JOIN THEM IN BUILDING AN INTERNATIONAL SPACE STATION THAT WOULD BE THE WORLD'S LARGEST COLLABORATIVE SCIENCE PROJECT THE US AND RUSSIAN SPACE AGENCIES EARLIER CERTIFIED THAT IT WAS TECHNICALLY FEASIBLE TO MERGE RUSSIA'S FUTURE MIR 2 SPACE STATION WITH A STILLUNBUILT ORBITING LABORATORY UNDER DESIGN FOR THE PAST 10 YEARS BY THE US AND ITS CURRENT FOREIGN PARTNERS BUT AT A MEETING YESTERDAY OF SPACEAGENCY OFFICIALS FROM THE US EUROPE CANADA AND JAPAN THE PARTNERS GAVE THE FINAL GOAHEAD TO INVITE RUSSIA TO JOIN THE PROJECT MOSCOW IS EXPECTED TO ACCEPT THE INVITATION AND SEAL THE DEAL WHEN VICE PRESIDENT AL GORE VISITS MOSCOW NEXT WEEK THE NEW LARGER SPACE STATION WOULD BE ASSEMBLED IN ORBIT STARTING IN 1997 AND IS TO BE FINISHED BY 2001 TWO YEARS EARLIER THAN WITHOUT RUSSIAN PARTICIPATION PRESIDENT CLINTON WON COMMITMENTS FROM KEY SPACESTATION BACKERS ON CAPITOL HILL LAST WEEK TO SUPPORT HIS ADMINISTRATION'S PLAN TO INCLUDE RUSSIA WHOSE CURRENT SPACE STATION MIR HAS BEEN IN ORBIT SINCE 1986 PLANS CALL FOR THE RUSSIANS TO SUPPLY NAVIGATION AND CONTROL INSTRUMENTS ESCAPE CAPSULES AND A MODULE FOR TWO COSMONAUTS TO LIVE AND WORK AND TO COLLABORATE ON DESIGNING A NEW SPACE SUIT AND ENVIRONMENTAL SYSTEMS THAT CONTROL BREATHING AIR AND WATER SUPPLY FOR ALL SIX SPACESTATION INHABITANTS THE US WHICH IS CONTRIBUTING MOST OF THE HARDWARE AND MONEY WOULD LEAD THE PROJECT THE EUROPEAN SPACE AGENCY AND JAPAN EACH ARE SUPPLYING A MODULE AND CANADA WILL CONTRIBUTE A MECHANICAL ARM FOR WORK IN OUTER SPACE US OFFICIALS SAID RUSSIAN PARTICIPATION WOULD SHAVE 2 BILLION OFF THE 19 BILLION US COST OF FINISHING THE PROJECT THE US ALREADY HAS SPENT ABOUT 10 BILLION IN PLANNING AND DEVELOPMENT COSTS EUROPE JAPAN AND CANADA ARE PICKING UP THE TAB FOR THEIR CONTRIBUTIONS THERE ARE NO ESTIMATES YET OF WHAT RUSSIA WOULD CONTRIBUTE THE SPACESTATION DEVELOPMENT CAME AS THE CREW OF THE US SPACE SHUTTLE ENDEAVOUR SUCCESSFULLY COMPLETED TWO KEY MAINTENANCE OPERATIONS IN TWO DAYS OF SPACE WALKS TO SERVICE THE ORBITING HUBBLE SPACE TELESCOPE AT LEAST THREE MORE DAYS OF SPACE WALKS ARE SCHEDULED TO REPAIR PROBLEMS WITH THE TELESCOPE'S VISION THE MISSION IS WIDELY REGARDED AS A TEST OF THE US SPACE PROGRAM'S ABILITY TO DO THE KIND OF EXTENSIVE ASSEMBLY WORK OUTSIDE THE CAPSULE THAT WOULD BE REQUIRED TO BUILD A SPACE STATION 9312070090 931207 SERVICE ECONOMY SEEMS RATHER CREAKY IN BRITAIN JUST NOW NOBODY WANTS TO BE A SERVANT OR BE CONFUSED FOR ONE RUDENESS MAKES THE POINT BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ALAN WATKINS ON A TRIP THROUGH BRITAIN WASN'T LOOKING FOR MUCH JUST A BREAKFAST OF TEA AND TOAST WITH JAM AND BUTTER THE THREE HOTELS WHERE HE STOPPED HAD OTHER IDEAS INSTEAD OF TEA AND TOAST ROOM SERVICE BROUGHT HIM COFFEE AND ROLLS INSTEAD OF THE JAM HE WANTED AND BUTTER HE GOT MARMALADE AND MARGARINE ONE MORNING THE HOTEL GOT THE TEA AND JAM RIGHT BUT BROUGHT HIM CROISSANTS ANOTHER DAY THE DESIRED TOAST APPEARED BUT WITH HONEY NOT JAM SOME DAYS HE GOT AN ASSORTMENT OF BREADS OTHER BREAKFASTS BROUGHT HIM AN EMBARRASSMENT OF MARMALADE JAM AND HONEY BUT NOT ONCE IN THREE WEEKS DID HE GET EXACTLY WHAT HE HAD ORDERED HOTELS ACT AS IF ONE IS LUCKY TO GET ANYTHING SAYS MR WATKINS A LONDON POLITICAL COLUMNIST ONE OF MR WATKINS'S HOTELS THE QUEENS HOTEL IN BRIGHTON SAYS IT KNOCKED 150 OFF HIS BILL THANKS TO HIS COMPLAINT HIS EXPERIENCE SOUNDS LIKE AN EPISODE OF FAWLTY TOWERS THE OLD BRITISH TV SERIES ABOUT A DISASTERPRONE INN WHERE BAD SERVICE WAS THE SPECIALITE DE LA MAISON STOP IN AT YE GRAPES PUB IN LONDON WHERE THE BARTENDER ANNOUNCES CLOSING TIME BY SAYING MOVE IT OUT DO YOU SPEAK ENGLISH THAT MEANS GET OUT OF THE BAR A WAITER IN AN EXPENSIVE RESTAURANT TELLS A LARGE PARTY TO HURRY UP AN ELECTRONICS STORE WON'T DEMONSTRATE ITS COMPUTER PRINTERS CHINESE RESTAURANTS WON'T DELIVER GROCERY CHECKOUT CLERKS WON'T BAG GROCERIES SHOEREPAIR SHOPS WON'T SHINE SHOES OBVIOUSLY OTHER COUNTRIES HAVE THEIR SERVICE PROBLEMS TOO AND SOME BRITISH BUSINESSES SUCH AS BRITISH AIRWAYS THE ROYAL MAIL AND LONDON TAXIS HAVE STANDARDS THAT WOULD PLEASE THE MOST PERSNICKETY AMERICAN BUT GARRY TOPPING AN ALABAMA TRAVEL AGENT WITH AUSTRALIAN ROOTS SAYS HE PREFERS SENDING TOURISTS TO THE CONTINENT WHICH HAS A PRETTY GOOD GRIP ON SERVICE IN LONDON HE SAYS HE FEELS AN URGE TO SLAP RATHER THAN THANK THE HOTEL DOORMAN EVEN IN THE AMERICAN SERVICE ECONOMY WHERE THE CUSTOMER IS KING OR ALWAYS RIGHT OR SOMETHING LIKE THAT EVERYBODY HAS TALES TO TELL ABOUT BAD TREATMENT BUT BRITISH BAD SERVICE IS GENETIC SAYS DAVID BURNHAM A COMPUTER CONSULTANT FROM HAMPSHIRE THOUGH HE TRAVELS OFTEN IN EUROPE AND THE US HE SAYS I CAN'T THINK OF ANOTHER COUNTRY WHERE THE SERVICE IS QUITE AS BAD AS IT IS OVER HERE AND I'M PATRIOTIC PART OF THE BLAME APPEARS TO FALL ON THE REMNANTS OF THE BRITISH CLASS SYSTEM UNDER WHICH ONLY SERVANTS SERVED WAITERS BUSBOYS AND SALESMEN LIKE TO REMIND CUSTOMERS THAT THEY ARE NOT SERVANTS A LITTLE RUDENESS PROVES THE POINT BAD SERVICE OFTEN IS TOLERATED BY THE BRITISH THEMSELVES BECAUSE OF ANOTHER EVIDENT NATIONAL QUIRK A DISINCLINATION TO MAKE A FUSS WE'RE HELD BACK BY THIS CULTURAL RESERVE SAYS KEITH RICHARDS OF BRITAIN'S CONSUMER ASSOCIATION WE DON'T HAVE THE ITALIAN TEMPERAMENT OR THE AMERICAN VIEW THAT IF SOMETHING IS WRONG IT SHOULD BE FIXED SO THINGS DON'T GET FIXED THE CONSUMER ASSOCIATION IN A STUDY THIS MONTH FOUND THAT BANKS TO NOBODY'S SURPRISE GENERALLY PROVIDE A SHODDY SERVICE TO MANY CUSTOMERS BOTCHING DIRECT DEBITS OR STANDING ORDERS FOR ONE IN FIVE PEOPLE IN THE PAST YEAR ITS STUDY OF GARAGES RATED ONLY TWO OF 36 AS GOOD AND SAYS RESEARCHER LIAM MCCORMACK WE CERTAINLY HAVEN'T SEEN MUCH EVIDENCE OF IMPROVEMENT THE CONSUMER ASSOCIATION'S PERSONAL SERVICE HOT LINE UNCOVERS ALL SORTS OF OUTRAGES AND SOME FEDUP BRITONS ARE SHEDDING THEIR RESERVE MICHAEL WINNER A LONDON FILM PRODUCER STARTED A RESTAURANT COLUMN IN THE SUNDAY TIMES THIS YEAR DEVOTED LARGELY TO CRITICIZING POOR SERVICE THE BRITISH ARE PARTICULARLY BAD AT GIVING SERVICE HE SAYS THEY WANT TO HAVE IT FOR THEMSELVES BUT NOT GIVE IT TO ANYBODY ELSE EVEN WHEN MR WINNER VISITS A RESTAURANT FOR A REVIEW PAD IN HAND HE SAYS THE SERVICE IS OFTEN SLOW SNOOTY OR WRONG ONE OF MR WINNER'S READERS WROTE HIM ABOUT A MANAGER OF LE GAVROCHE AN EXPENSIVE RESTAURANT WHOM SHE CALLED AFTER A BAD MEAL TO SEE IF THE PLACE HAD SIMPLY HAD AN OFF NIGHT ACCORDING TO HER LETTER THE MANAGER RESPONDED MADAM YOU WERE OUR OFF NIGHT AFTER THE LETTER WAS PUBLISHED ALBERT ROUX WHO OWNS LE GAVROCHE INVITED THE WOMAN BACK TO DINE WITH HIM IN MY RESTAURANTS THE CUSTOMER IS ALWAYS KING PROVIDING THE CUSTOMER IS POLITE HE SAYS BUT MR ROUX WHO IS FRENCH SAYS THAT'S NOT THE CASE ELSEWHERE IN BRITAIN THE CUSTOMER HAS NEVER BEEN RIGHT A RECENT STUDY BY THE BRITISH AUTOMOBILE ASSOCIATION FOUND THAT 60 OF RESTAURANTS FEEL CUSTOMERS ARE BADMANNERED HOPING TO PUT A FRIENDLIER FACE ON THINGS THE ENGLISH TOURIST BOARD HAS JUST LAUNCHED A WELCOME HOST PROGRAM THE DAYLONG 70 SEMINAR INCLUDES ADVICE ON MAKING CONVERSATION AND GIVING DIRECTIONS IT INTRODUCES SUCH CONCEPTS AS ANSWERING A TELEPHONE ON OR BEFORE A THIRD RING INSTEAD OF THE USUAL DOZEN OR TWO OBVIOUSLY A GOOD IDEA NO TO BE HONEST WE GET CONSIDERABLE DEBATE OVER THIS SAYS TRAINER ANGELINA BODEN PRIME MINISTER JOHN MAJOR'S GOVERNMENT MEANWHILE INTRODUCED A CITIZENS CHARTER TO BRING PUBLIC SERVICES UP TO SNUFF THE BRITISH STANDARDS INSTITUTE CREATED A NEW CERTIFICATION FOR SERVICE COMPANIES ALSO SPROUTING ARE AMERICANSTYLE CONSULTING GROUPS SUCH AS BEM LTD WHICH TRIES TO REFORM THE SERVICE INDUSTRY BY SENDING 2000 MYSTERY CUSTOMERS TO CHECK UP ON RETAIL AND FOOD OUTLETS THE FINDINGS AREN'T ENCOURAGING WHEN ONE OF THE SPIES ORDERED 96 BOTTLES OF CHAMPAGNE FROM A LARGE LIQUORSTORE CHAIN THE MANAGER LAUGHED CALLED HIM STUPID AND SAID THE ORDER REQUIRED A WEEK'S NOTICE ANOTHER BEM WORKER FELL ILL AFTER DINING AT A RESTAURANT WHICH RESPONDED TO THE NEWS WHAT DO YOU EXPECT IF YOU HAVE A PRAWN SANDWICH ON A HOT AFTERNOON TODAY MYSTERY CUSTOMER NEIL CALLAGHAN IS MAKING HIS ROUNDS IN LONDON'S WEST END HE TRIES TO BUY BIKING SHOES AT A SPORTINGGOODS STORE BUT THE CLERK IGNORES HIM HE THEN VISITS UPSCALE AUSTIN REED FOR A DRESS SHIRT THE SALESMAN LOOKS AT MR CALLAGHAN'S BACKPACK AND THE BOMBER JACKET HE IS WEARING AND SMIRKS AT AN ELECTRONICS SHOP MR CALLAGHAN SEEKS ADVICE ABOUT A LASERDISK PLAYER BUT THE CLERK LEGS CROSSED AND HANDS IN POCKETS DOESN'T LEAVE HIS PERCH AT THE OTHER END OF THE ROOM THIS IS BLOODY AWFUL MR CALLAGHAN SAYS BUT MR O'NEILL PREFERS FRIENDLY AMERICAN SERVICE INSINCERE THOUGH IT MAY BE TO THE BRITISH ALTERNATIVE AND THINGS STILL AREN'T GOING WELL FOR POOR MR WATKINS WHO SAYS HIS VAIN SEARCH FOR THE BREAKFAST OF HIS DREAMS HAS BEEN GOING ON FOR YEARS HE ONCE WENT TO A RESTAURANT THAT OFFERED BACON AND EGGS BACON AND SAUSAGE OR SAUSAGE AND EGGS HE ASKED FOR BACON SAUSAGE AND EGGS AND THE WAITRESS REFUSED MR WATKINS OFFERED TO PAY EXTRA BUT WAS TOLD THAT THE SIDE ORDER WOULD BE TOO DIFFICULT TO CALCULATE HE OFFERED TO DO THE ARITHMETIC NO THE WAITRESS TOLD HIM IF I DID IT FOR YOU EVERYONE WOULD WANT IT 9312070089 931207 BUSINESS BRIEF BOMBARDIER INC UNIT GETS GERMAN CONTRACT WITH VALUE OF 697 MILLION BOMBARDIER INC SAID ITS BOMBARDIER EURORAIL GROUP RECEIVED AN ORDER OF ABOUT 120 MILLION GERMAN MARKS US697 MILLION FROM TRANSPORTATION AUTHORITIES IN COLOGNE GERMANY FOR 40 LIGHTRAIL VEHICLES THE CONTRACT INCLUDES AN OPTION FOR 80 MORE VEHICLES WHICH WOULD BRING THE TOTAL VALUE OF THE ORDER TO ABOUT 360 MILLION MARKS THE MONTREAL TRANSPORTATIONEQUIPMENT MAKER SAID DELIVERY OF THE 40 VEHICLES WILL TAKE PLACE BETWEEN AUGUST 1995 AND FEBRUARY 1996 9312070088 931207 CREDIT RATINGS MASCOTECH INC MOODY'S INVESTORS SERVICE INC SAID IT IS CONSIDERING A POSSIBLE CREDITRATING UPGRADE THAT WOULD AFFECT ABOUT 670 MILLION OF MASCOTECH'S LONGTERM DEBT AND 216 MILLION OF PREFERRED STOCK THE MOVE FOLLOWS MASCOTECH'S RECENT ANNOUNCEMENT OF A SERIES OF DEBTREDUCTION MOVES INCLUDING PLANS SELL ITS ENERGYRELATED BUSINESSES FOR ABOUT 150 MILLION BY NEXT YEAR THE UPGRADE WOULD PLACE MASCOTECH'S SENIOR DEBT AT BA3 MOODY'S SAID ITS REVIEW WILL ASSESS THE OUTLOOK FOR FURTHER DEBT REDUCTION AND THE COMPANY'S STRATEGY FOR SUSTAINING IMPROVED PROFITABILITY IN ITS CORE AUTOMOTIVE BUSINESS MASCOTECH BASED IN TAYLOR MICH MAKES COMPONENTS FOR THE TRANSPORTATION INDUSTRY 9312070087 931207 YOUR MONEY MATTERS INVESTMENT DARTBOARD STOCKPICKERS AND THE DARTS ARE BOTH THROWN FOR A LOSS BY GEORGETTE JASEN AND JOHN R DORFMAN STAFF REPORTERS OF THE WALL STREET JOURNAL BETTER LUCK NEXT TIME THAT'S ABOUT THE BEST THAT CAN BE SAID FOR THE OUTCOME OF THIS COLUMN'S LATEST STOCKPICKING CONTEST THE MARKET AS A WHOLE IS TRADING NEAR RECORD HIGHS BUT ONLY ONE OF FOUR INVESTMENT PROFESSIONALS AND NONE OF A TEAM OF DART THROWERS PICKED A MONEYMAKING STOCK THE WINNER DID ONLY SLIGHTLY BETTER THAN THE DOW JONES INDUSTRIAL AVERAGE THE FOUR STOCKS SELECTED BY THE PROS FELL AN AVERAGE OF 74 COMPARED WITH A 214 AVERAGE DROP FOR THE FOUR STOCKS CHOSEN BY A FLING OF DARTS THE DOW JONES INDUSTRIAL AVERAGE GAINED 49 DURING THE PERIOD FROM JUNE 9 TO THE END OF NOVEMBER THE RESULTS PUT THE PROS A BIT FURTHER AHEAD OF THE DARTS IN THIS SERIES OF OVERLAPPING SIXMONTH CONTESTS THE SCORE IS NOW 25 TO 17 IN FAVOR OF THE PROFESSIONAL STOCKPICKERS THE MARGIN AGAINST THE DOW JONES INDUSTRIAL AVERAGE IS NARROWER THAT TALLY STANDS AT 22 TO 20 FOR THE PROS SINCE THE COMPETITION BEGAN IN ITS CURRENT FORMAT IN JULY 1990 THE AVERAGE GAIN HAS BEEN 80 FOR THE PROS 43 FOR THE INDUSTRIALS AND 25 FOR THE DARTS THE LATEST CONTEST DASHED THE CHANCES OF ELIZABETH BRAMWELL MANAGER OF THE GABELLI GROWTH FUND TO BECOME THE THIRD PERSON TO WIN FOUR OR MORE CONTESTS AFTER THREE WINS HER MOSTRECENT PICK WAS INACOM CORP AN OMAHA NEB MAKER OF COMPUTER EQUIPMENT WHOSE STOCK PRICE SLID 95 IN THE SIXMONTH PERIOD IN FIRST PLACE THIS TIME AROUND WAS GEORGE PUTNAM III PRESIDENT OF NEW GENERATION RESEARCH IN BOSTON AND EDITOR OF THE TURNAROUND LETTER HIS PICK LOMAS FINANCIAL CORP A MORTGAGESERVICING COMPANY IN DALLAS GAINED 67 IN THE PERIOD TO 8 FROM 750 THE SECONDPLACE FINISHER LARRY RICE CHIEF MARKET STRATEGIST FOR JOSEPTHAL LYON & ROSS IN NEW YORK PICKED MERCK & CO THE RAHWAY NJ PHARMACEUTICALS COMPANY ITS STOCK DECLINED 68 TO 3425 FROM 3675 AS IS THE CUSTOM IN THIS COLUMN THE TWO TOP FINISHERS HAVE BEEN INVITED TO TRY THEIR LUCK AGAIN MR PUTNAM AN EXPERT ON COMPANIES THAT ARE IN BANKRUPTCY PROCEEDINGS OR HAVE RECENTLY EMERGED FROM THEM IS GOING WITH NATIONAL CONVENIENCE STORES INC THE HOUSTON COMPANY WHICH OPERATES 725 STORES MOSTLY IN TEXAS COULD EARN 2 A SHARE IN ITS FIRST YEAR AFTER EMERGING FROM BANKRUPTCYLAW PROCEEDINGS EARLY THIS YEAR MR PUTNAM PREDICTS USING A NORMAL MARKET MULTIPLE THE STOCK WOULD BE IN THE HIGH 20S UP FROM 15125 YESTERDAY ON THE NASDAQ STOCK MARKET HE SAYS HE'D BUY THE STOCK INTO THE LOW 20S THE COMPANY USED BANKRUPTCY PROCEEDINGS TO SHED ABOUT 300 UNDERPERFORMING STORES MR PUTNAM SAYS AND STRAIGHTENED OUT ITS OPERATIONS HE SAYS THE TEXAS STORES WHICH OPERATE UNDER THE STOP N GO NAME ALSO HAVE BENEFITED FROM THE INTRODUCTION OF A STATE LOTTERY ABOUT A YEAR AND A HALF AGO THEY'RE MAKING MONEY SELLING LOTTERY TICKETS AND THE TICKET SALES ARE BRINGING MORE PEOPLE INTO THE STORES MR PUTNAM OBSERVES MR RICE'S PICK FOR THE COMING SIX MONTHS IS LIMITED INC THE COLUMBUS OHIO APPAREL RETAILER THE STOCK HAS BEEN BEATEN DOWN HE SAYS THE STREET IS FOCUSING TOO MUCH ON NEARTERM PROBLEMS INSTEAD OF LONGTERM STRENGTHS HE PREDICTS THAT THE SHARES WHICH CLOSED AT 17875 EACH YESTERDAY ON THE NEW YORK STOCK EXCHANGE WILL BE BACK OVER 20 SIX MONTHS FROM NOW THE STOCK TRADED CLOSE TO 30 EARLY THIS YEAR ALTHOUGH THE COMPANY HAS HAD INVENTORY PROBLEMS AND MISREAD SOME MARKETS MR RICE SAYS PROSPECTS FOR THE COMING YEAR ARE GOOD HE BASES HIS OPTIMISM ON ITS CONSUMER FRANCHISE AND DIVERSITY OF BUSINESSES AS WELL AS AN ANTICIPATED REBOUND IN CONSUMER SPENDING THE COMPANY'S OPERATIONS INCLUDE LIMITED AND LIMITED EXPRESS STORES AND VICTORIA'S SECRET STORES AND CATALOG THE TWO NEW CONTESTANTS JOINING THE FUN ARE ELIZABETH A PEARCE DIRECTOR OF RESEARCH AT ANDERSON CAPITAL MANAGEMENT IN SAN FRANCISCO AND HILTON HEMPHILL CHIEF INVESTMENT OFFICER AT HOURGLASS CAPITAL MANAGEMENT IN DALLAS MS PEARCE RECOMMENDS A COMPANY THAT HAS NO EMPLOYEES SAN JUAN BASIN ROYALTY TRUST THE FORT WORTH TEXAS ENTITY OWNS A 75 INTEREST IN A NATURAL GAS FIELD IN THE SAN JUAN BASIN IN NEW MEXICO THE ACTUAL DRILLING IS HANDLED BY BURLINGTON RESOURCES INC MS PEARCE LIKES SAN JUAN'S FAT MONTHLY DIVIDEND DURING THE PAST 12 MONTHS DIVIDENDS HAVE TOTALED 77 CENTS PROVIDING A YIELD OF 79 BASED ON YESTERDAY'S CLOSING PRICE OF 975 SHE FIGURES THE YIELD WILL PROVIDE STABILITY IF THE STOCK MARKET TURNS ROCKY AS SHE THINKS LIKELY THE INCOME IS TAXDEFERRED MAKING SAN JUAN AN ATTRACTIVE ALTERNATIVE TO MUNICIPAL BONDS IN HER OPINION SOME OR ALL OF THE DIVIDENDS ARE TREATED AS A RETURN OF AN INVESTOR'S ORIGINAL CAPITAL WHEN THE SHARES ARE EVENTUALLY SOLD THIS CAN RESULT IN A HIGHER CAPITALGAINS TAX THAN ON AN ORDINARY STOCK INVESTMENT THAT'S BECAUSE THE RETURN OF CAPITAL REDUCES AN INVESTOR'S COST BASIS IN THE SHARES I THINK NATURAL GAS PRICES ARE GOING TO GO UP MS PEARCE SAYS SO SHE BELIEVES THE DIVIDEND WILL BE GRADUALLY INCREASED THE FIELD IS LIKELY TO PRODUCE GAS FOR AN ADDITIONAL 20 YEARS SHE SAYS AND SHE ESTIMATES A FAIR VALUE FOR THE STOCK TO BE NORTH OF 13 MR HEMPHILL GIVES HIS STAMP OF APPROVAL TO STERLING SOFTWARE INC IN HIS HOME TOWN OF DALLAS STERLING SUPPLIES SOFTWARE FOR MAINFRAME COMPUTERS WHAT EXCITES MR HEMPHILL IS STERLING'S TOEHOLD IN ELECTRONIC DATA INTERCHANGE A PROCESS IN WHICH MERCHANTS CAN ORDER MERCHANDISE ELECTRONICALLY WITH BILLING AND PAYMENT HANDLED BY COMPUTER STERLING HAS A CHECKERED HISTORY MR HEMPHILL CONCEDES THEY HAVE HAD REPEATED WRITEOFFS BUT HE THINKS THE COMPANY HAS GOTTEN ITS ACT TOGETHER AND NOW HAS A LEADERSHIP ROLE IN A RAPIDLY GROWING NICHE OPERATING EARNINGS BEFORE WRITEOFFS WERE 122 A SHARE IN THE YEAR ENDED SEPT 30 AND HE SAYS THEY COULD JUMP TO 210 A SHARE IN THE YEAR IN PROGRESS THE STOCK CLOSED YESTERDAY ON THE BIG BOARD AT 28375 A SHARE FOR THE COMING SIX MONTHS THE PROS' PICKS WILL COMPETE WITH A DARTBOARD PORTFOLIO CONSISTING OF CHESAPEAKE CORP CSK FIRST FINANCIAL FUND FF GLACIER WATER SERVICES INC HOO AND WEYCO GROUP INC WEYS 9312070086 931207 WHO'S NEWS INFONOW CORP INFONOW CORP BOULDER COLO SAT TARA S KHALSA COFOUNDER OF THIS ELECTRONIC DISTRIBUTOR OF COMPUTER SOFTWARE STEPPED DOWN AS CHAIRMAN AND CHIEF EXECUTIVE MR KHALSA 40 YEARS OLD WILL REMAIN A DIRECTOR AND AN EMPLOYEE IN AN UNSPECIFIED POST SUCCEEDING HIM AS CHIEF EXECUTIVE IS MARK J BRONDER 42 CHIEF OPERATING OFFICER AND PRESIDENT MR BRONDER WILL RETAIN HIS POST AS PRESIDENT THE BOARD ELECTED DAVID BUNNELL CHAIRMAN MR BUNNELL 47 WHO HAD BEEN A DIRECTOR IS CHAIRMAN OF HYPERMEDIA COMMUNICATIONS INC SAN MATEO CALIF AND A FOUNDER OF SEVERAL COMPUTERINDUSTRY MAGAZINES 9312070085 931207 THE CAR BOOK NAMES ITS BEST BETS' FOR 1994 DETROIT GENERAL MOTORS CORP'S CHEVROLET BERETTA AND PONTIAC TRANS SPORT MODELS BOTH OF WHICH HAVE BEEN PANNED BY SOME AUTOMOTIVE CRITICS ARE AMONG THE CAR BOOK'S BEST BETS FOR 1994 CAR BUYERS JACK GILLIS A FORMER EMPLOYEE OF THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION AND THE AUTHOR OF THE CAR BOOK RATES NEW MODELS FOR CRASH WORTHINESS MAINTENANCE COSTS AND INSURANCE COSTS IN ADDITION TO RATINGS IN EACH CATEGORY HE LISTS OVERALL BEST BETS FOR CAR BUYERS IN THE 1994 EDITION PUBLISHED TODAY THE BOOK ALSO LISTS THE TRANS SPORT AND ITS SISTER VEHICLES THE OLDSMOBILE SILHOUETTE AND THE CHEVROLET LUMINA MINIVAN AS THREE OF THE SIX BEST MINIVANS OTHER BEST BETS ARE THE NISSAN SENTRA THE FORD TAURUS WAGON AND THE PLYMOUTH ACCLAIM THE BOOK PUBLISHED BY HARPERCOLLINS IN CONJUNCTION WITH THE CENTER FOR AUTO SAFETY ALSO LISTS TWO GM CARS THE BUICK ROADMASTER AND THE CADILLAC ELDORADO AMONG THE FIVE VEHICLES WITH THE WORST COMPLAINT HISTORY THE OTHER THREE VEHICLES ARE THE FORD CROWN VICTORIA AND THE CHRYSLER TOWN AND COUNTRY MINIVAN THE VEHICLES WITH THE LEAST COMPLAINTS ACCORDING TO THE BOOK ARE THE EAGLE SUMMIT WAGON THE LEXUS SC300 AND 400 COUPES THE MAZDA RX7 THE VOLKSWAGEN EUROVAN AND SATURN COUPES WAGONS AND SEDANS 9312070084 931207 AUTOMOBILES BY DOUGLAS LAVIN AND ANDREA PUCHALSKY TRACKING SYSTEMS FOR STOLEN CARS AREN'T JUST FOR THEFTS ANY MORE THEY'RE ALSO USED TO FOLLOW A DELIVERY TRUCK OR TO CHECK WHETHER A SECURITY GUARD IS SPENDING TOO MUCH TIME AT THE LOCAL DOUGHNUT SHOP PACTEL TELETRAC INGLEWOOD CALIF PIONEERED 24HOUR VEHICLE TRACKING IT SELLS THE SYSTEM TO BUSINESSES THAT MONITOR THEIR FLEETS AND TO AT LEAST ONE SECURITY COMPANY THAT WATCHES OVER ITS GUARDS IT HAS ALSO BEEN USED BY SUSPICIOUS SPOUSES TRYING TO TRACK PHILANDERING MATES THE COMPANY SAYS PACTEL HAS EXPANDED FROM ITS LOS ANGELES BASE TO DETROIT CHICAGO MIAMI HOUSTON AND DALLASFORT WORTH WITH ABOUT 30000 SYSTEMS IN USE LOJACK DEDHAM MASS PERHAPS THE BESTKNOWN PROVIDER OF TRACKING SYSTEMS SAYS IT IS STAYING AWAY FROM 24HOUR MONITORING LOJACK WHICH HAS INSTALLED MORE THAN 200000 SYSTEMS ONLY ACTIVATES ITS DEVICES WHEN A CAR IS REPORTED STOLEN LOJACK SAYS IT DOESN'T WANT TO PRY INTO ITS CUSTOMERS' AFFAIRS BUT OTHER COMPANIES ARE FOLLOWING PACTEL'S LEAD CODEALARM MADISON HEIGHTS MICH PROMOTES ITS TRACKING SYSTEM THIS WAY SAY SOMEONE IS USING YOUR CAR YOUR SON DAUGHTER YOUR SPOUSE THEY'RE LONG OVERDUE ARE THEY STUCK IN TRAFFIC ARE THEY JUST AROUND THE CORNER YOU'LL KNOW PRECISELY WHERE THEY ARE WITH THE PEACE OF MIND LOCATE FEATURE ALL YOU HAVE TO DO IS CALL THE ALARM COMPANY THEY'LL TELL YOU WHERE YOUR CAR IS ANYTIME MIAMIBASED SEEKER SYSTEM SAYS ITS SOUTH FLORIDA TRACKING SYSTEMWHICH HAS A PANIC BUTTONCOULD CUT ATTACKS ON TOURISTS IN RENTAL CARS THE PANIC BUTTON WORKS MUCH LIKE SIMILAR BUTTONS ON HOME ALARM SYSTEMS IT SENDS AN ALERT TO SEEKER WHICH THEN CONTACTS THE POLICE WITH YOUR LOCATION THE COMPUTER PINPOINTS YOU AND TURNS RED AND ALL SORTS OF BELLS AND WHISTLES GO OFF SAYS JAMES SENTARO PRESIDENT OF SEEKER DETROIT'S BIG THREE CAR MAKERS LIKE TO SAY THE DIFFERENCE IN QUALITY BETWEEN US AND JAPANESE AUTOS HAS NARROWED SO MUCH IT'S INSIGNIFICANT IT HAS NARROWED SINCE THE EARLY '80S AND LATE '70S WHEN DETROIT'S CARS WERE FULL OF DEFECTS BUT LATELY THE GAP HAS BEEN PRETTY STEADY AND IT'S STILL PLENTY WIDE SIX YEARS AGO ASIAN NAMEPLATES AVERAGED 143 PROBLEMS FOR EVERY 100 VEHICLES WHILE THE BIG THREE AVERAGED 175 PROBLEMS ACCORDING TO JD POWER & ASSOCIATES' INITIALQUALITY SURVEY THAT'S A 22 GAP THIS YEAR THE ASIAN AVERAGE WHICH INCLUDES KOREA'S HYUNDAI MOTOR WAS DOWN TO 94 PROBLEMS FOR 100 VEHICLES WHILE THE BIG THREE MAKERS HAD 113 PROBLEMS THAT'S A 20 DIFFERENCE THE GAP IS EVEN WIDER IF YOU EXCLUDE HYUNDAI WHICH HAD 194 PROBLEMS PER 100 VEHICLES WHO'S DRAGGING THE BIG THREE AVERAGE DOWN IT'S DETROIT'S WUNDERKIND OF THE MOMENT CHRYSLER WHICH HAS A SALESWEIGHTED AVERAGE OF 135 PROBLEMS PER 100 VEHICLES AND HAS THE ONLY TWO DOMESTIC NAMEPLATES DODGE AND EAGLE TO MAKE THE 10WORST LIST THERE'S ALSO THE LUXURY GAP IT'S GETTING SMALLER THERE JUST ISN'T AS MUCH DIFFERENCE BETWEEN LUXURY SEDANS AND AVERAGE CARS AS THERE USED TO BE IN 1987 MERCEDESBENZES BMWS A PORSCHE AND VOLVOS DOMINATED THE LIST OF CARS WITH AIR BAGS NEXT YEAR EVEN SUCH RELATIVELY INEXPENSIVE CARS AS THE CHRYSLER NEON WILL OFFER BOTH AIR BAGS AND ANTILOCK BRAKES DITTO FOR STIFF SIDEIMPACT PROTECTION AND ELECTRONIC FOURSPEED TRANSMISSIONS ONCE LUXURY ITEMS THEY'RE NOW ON DODGES AND FORDS THE TECHNOLOGY GAP BETWEEN LUXURY AND NEARLUXURY SEDANS CONTINUES TO NARROW SAYS SUSAN JACOBS OF JACOBS AUTOMOTIVE AN ANALYSIS FIRM THAT SPECIALIZES IN LUXURY CARS THE GAP IS NARROWING IN OTHER AREAS AS WELL CHEVROLET OFFERS 24HOUR ROADSIDE ASSISTANCE ONCE A LUXURY ITEM BOTH SATURN AND LEXUS ARE INDUSTRY LEADERS IN CUSTOMER ATTENTIVENESS AND NEARLUXURY CARS AS A GROUP REGULARLY SCORE BETTER THAN LUXURY CARS DO ON THE JD POWER INITIALQUALITY SURVEY CONSIDER BUICK AND MERCEDES MODELS IN 1988 BUICK HAD 174 PROBLEMS PER 100 VEHICLES AND MERCEDES HAD ONLY 115 PROBLEMS THIS YEAR BUICK AND MERCEDES TIED AT 95 BUT FEAR NOT FOR 50000 OR SO SOME ADDITIONAL GIZMOS ARE AVAILABLE SOME LEXUS MODELS HAVE A STEERING WHEEL THAT SLOWLY RETRACTS TO LET YOU OUT OF THE CAR AND RETURNS TO ITS PROPER PLACE AFTER YOU GET BACK IN INFINITI HAS A SIDEVIEW MIRROR THAT AUTOMATICALLY ANGLES DOWN WHEN THE CAR IS PUT INTO REVERSE THE IDEA IS TO GIVE YOU A BETTER VIEW OF THE GROUND IMMEDIATELY BEHIND THE CAR THE NARROW GAP BETWEEN LUXURY AND NEARLUXURY CARS CREATES AN OPPORTUNITY FOR SOME MIDMARKET SEDANS THE NISSAN MOTOR ALTIMA WHICH SELLS FOR AROUND 17000 WHEN GENEROUSLY EQUIPPED HAS BEEN A HOT SELLER IN PART BECAUSE IT HAS THE SAME RADICALLY ROUNDED LOOK AS ITS EXPENSIVE INFINITI SISTER THE J30 IT STANDS OUT SO EVEN THOUGH IT DOESN'T HAVE A LUXURY NAMEPLATE IT APPEALS TO BUYERS WHO WANT SOMETHING UNIQUE BOTH THE PONTIAC BONNEVILLE AND CHRYSLER'S NEW UPMARKET TWINS THE LHS AND THE NEW YORKER ARE TRYING TO TAKE ADVANTAGE OF THEIR DISTINCTIVE CURVES TO ATTRACT LEXUS AND BMW BUYERS BUT THE BONNEVILLE ISN'T SELLING AS WELL AS IT DID LAST YEAR AND CHRYSLER'S NEW CARS HAVEN'T BEEN DOING WELL EITHER CHRYSLER EVEN HAD TO CUT BACK PRODUCTION OF ITS NEW MODELS EARLIER THIS YEAR A SUBSIDIZED LEASE PACKAGE ON THE CARS HAS GOT THEM ROLLING AGAIN CHRYSLER'S AND PONTIAC'S PROBLEM MAY NOT BE THEIR CARS IT MAY SIMPLY BE THAT TRUE LUXURYCAR SHOPPERS WOULDN'T THINK OF GOING TO A PONTIAC SHOWROOM OR PARTICULARLY TO A CHRYSLER DEALER THE FORMER HOME OF THE TINNY KCAR THAT'S ONE AREA WHERE THE TRADITIONAL LUXURY BRANDS STILL HOLD THE UPPER HAND 9312070083 931207 LEISURE & ARTS ANIMALS CHRISTMAS BOOKS A HOLIDAY SAMPLER BY MANUELA HOELTERHOFF WHY ARE ELEPHANTS SO WRINKLED WHY DO THEY NEED TRUNKS WHAT HAPPENED TO JUMBO THESE ARE QUESTIONS MOST EVERYBODY HAS ASKED AT ONE TIME OR ANOTHER AND HAPPILY EMILY GWATHMEY HAS ADDRESSED THEM AND MANY OTHERS IN HER TRIBUTE TO THE BIGGEST OF THE BEASTS AN ENCHANTMENT OF ELEPHANTS POTTER 80 PAGES 20 THIS IS A SLIGHT LITTLE BOOK SAY THE SIZE OF ONE ELEPHANTINE TOENAIL BUT IN A CHARMING FASHION IT TELLS US EVERYTHING WE COULD POSSIBLY WANT TO KNOW ABOUT THESE 1200 POUNDERS WHO OFTEN DIE VERY GRUESOME DEATHS THOUGH GETTING HIT BY A TRAIN IS ADMITTEDLY A FAIRLY UNUSUAL WAY TO GO JUMBO FAILED TO LOOK BOTH WAYS BEFORE CROSSING THE TRACKS AND SO HE DIED IN 1885 HOLDING TOM THUMB IN HIS TRUNK HE DIDN'T HAVE A GLOVE COMPARTMENT THE MOST FAMOUS ELEPHANT EVER JUMBO MADE 1 MILLION FOR BARNUM THE YEAR HE ARRIVED IN NEW YORK FROM ETHIOPIA WITH FESTIVE STOPS ALONG THE WAY HE WAS BY NO MEANS THE ONLY STAR OF HIS KIND MS GWATHMEY REMINDS US OF THE SYRIAN HANNIBAL'S PERSONAL MOUNT WHO SKIDDED DOWN THE SNOWY ALPS TO A COMFORTABLE ESTATE OUTSIDE ROME WHERE HE WAS MUCH ADMIRED AS THE SOLE PACHYDERM SURVIVOR OF THE CARTHAGINIAN'S QUIXOTIC QUEST MOSTLY THOUGH IT ISN'T EASY BEING AN ELEPHANT THESE DAYS OR AN INDIAN TIGER EITHER COULDN'T MEN FIND LESS EXOTIC WAYS TO PRIME THE PUMP YOU WONDER READING ABOUT WHOLE TIGERS GROUND DOWN INTO APHRODISIACS WHY MUST IT BE TUSKS TIGER BONES AND RHINO HORNS HOW ABOUT COCKROACHES RAT TAILS AND SLUGS THAT DAY MAY COME SOON ENOUGH IN INDIA JUDGING BY TIGER WALLAHS HARPERCOLLINS 174 PAGES 35 WRITTEN BY THE HISTORIAN AND INDIA BUFF GEOFFREY C WARD WITH HIS WIFE DIANE RAINES WARD NEVERMIND THE ARDENT EFFORTS OF SEVERAL DEVOTED MENTHINGS LOOK BLEAK FOR THE BIG CATS OF THE SHRINKING JUNGLE ESSENTIALLY A SAD ACCOUNT OF PROJECT TIGER A FAILED ATTEMPT TO SET ASIDE LARGE LEAFY TRACTS TO SAVE THE TIGER FROM INDIA'S EXPLODING POPULATION SURELY IN NO NEED OF LOVE POTIONS TIGER WALLAHS WITH ITS LONG LAVISHLY ILLUSTRATED TEXT PERIODICALLY COMES ALIVE WITH THE SOUNDS OF TIGERS ROARING DEER BARKING AND BEST OF ALL HUMANS SHRIEKING WHEN THE TABBIES TAKE REVENGE THE DIM ORNITHOLOGIST WHO STUMBLED OFF IN SEARCH OF AN OWL SHOULD HAVE STAYED ON THE CLEARLY MARKED PATH A SLIGHTLY OPTIMISTIC LAST CHAPTER DESCRIBES RANTHAMBHORE A PROMISING NONGOVERNMENTAL CONSERVATION EFFORT THAT ATTEMPTS TO YOKE THE WELLBEING OF THE TIGER WITH THE WELFARE OF THE SURROUNDING VILLAGERS BY PROVIDING THEM WITH HEALTH CARE AND CONTRACEPTIVES BY CONTRAST AN UNUSUAL INSECT PATROL HAS DONE AN EFFECTIVE JOB PROTECTING THE BEAUTY OF A STRANGE OASIS INSIDE THE KALAHARI DESERT I MEAN THE TSETSE FLY WHOSE BITE SENDS CATTLE AND PEOPLE INTO POTENTIALLY LETHAL COMAS BUT DOES NOTHING TO WILDLIFE SO AN AMAZING ASSORTMENT OF EGRETS GIRAFFES ELEPHANTS RHINOS IMPALAS BATEARED FOXES HIPPOS AND LIONS FLUTTER STALK SCAMPER SNORT SNOOZE AND CRUNCH THEIR WAY THROUGH FRANS LANTING'S OKAVANGA AFRICA'S LAST EDEN CHRONICLE 168 PAGES 45 BEGINNING IN NIGERIA THE OKAVANGA DESCENDS INTO NORTHERN BOTSWANA WHERE IT FIZZLES OUT INTO A DELTA THAT IS THE WORLD'S LARGEST AND LEAST KNOWN THOUGH AN AIRSTRIP IN THE NEARBY TOWN OF MAUN MAY TAKE CARE OF THAT VERY SOON MR LANTING A PHENOMENALLY HARDY PHOTOGRAPHER STAYED THERE AN ENTIRE YEAR CAPTURING THE DRAMATIC SEASONAL CHANGES IN A PLACE THAT COMES ACROSS EVERY BIT AS INCONGRUOUS AND INSPIRING AS KILIMANJARO RISING ON THE EQUATOR MOST WONDERFUL OF ALL ARE HIS NIGHTTIME PICTURES SAY THE POD OF COMIC HIPPOS SOAKING IN A POND WITH THEIR SQUINTY EYES SHINING LIKE CANDLELIT PUMPKINS OR THE DETERMINED LIONESSES STEPPING OUT FOR SOME YUMMY IMPALA IT WASN'T A GOOD NIGHT WE SEE ONE BEAST GNAWING UNHAPPILY ON A TINY PLOVER MIXED WITH TERMITES IT IS NOT A NOBLE SIGHT AS WITH PEOPLE AND BEASTS NIGHTTIME BRINGS OUT THE REALLY INTERESTING TYPES WITH FUR AND FUNNY OUTFITS IN THE CORAL REEF WHEN THE UNDERWATER SHADOWS DEEPEN AND MOST CREATURES TURN IN FOR THE NIGHT THE REEF'S NOCTURNAL RESIDENTS START LEAVING THEIR SUBMARINE HOMES FOR SOME EXCITING EXPEDITIONS THE CORAL REEF AT NIGHT ABRAMS 192 PAGES 3995 IS THE COMBINED EFFORT OF TWO DIVERS THE PHOTOGRAPHER JEFF ROTMAN AND THE WRITER JOE LEVINE WHO FOLLOWED THE CREATURES AS THEY ENGAGED IN THEIR FAVORITE ACTIVITIES KILLING EATING AND MATING WITH SOME TIME OUT FOR POSING AN UPENDED MORAY EEL WOULD STAND OUT EVEN IN THE CREEPY STREETS OF MANHATTAN IT'S NOT ONLY THE TEETH BUT THE HOLES ABOVE SO DROLLY DESCRIBED IN A TYPICAL CAPTION ACCOMPANYING A STRIKING PHOTOGRAPH OF AN OPENMOUTHED MONSTER THE TWO NOSTRILS' VISIBLE ON ITS SNOUT ARE NOT USED FOR BREATHING BUT ARE INSTRUMENTAL IN FOLLOWING ODOR TRAILS IN DARKENED REEF TUNNELS AND AT NIGHT SOME MORAYS GET AS BIG AS COWS MORE OFTEN THOUGH HORROR GIVES WAY TO WHIMSY THERE ARE COUNTLESS PICTURES IN THIS IMMENSELY BEAUTIFUL BOOK THAT WILL BRIGHTEN ANYONE'S DARKEST HOUR PIROUETTING OCTOPUSES FOR INSTANCE OR THOSE FUNKY DECORATOR CRABS WHOSE CONCEPT OF ALLOVER PATTERNING INVOLVES TEARING OFF BITS AND PIECES OF THEIR SURROUNDINGS AND STICKING THEM ON THEIR BODIES 9312070082 931207 LEISURE & ARTS CHRISTMAS BOOKS A HOLIDAY SAMPLER BY DEBORAH SOLOMON THE LATEST ART STAR OF THE COFFEETABLE CIRCUIT IS DONATELLO LONG OVERSHADOWED BY OTHER RENAISSANCE ARTISTS THE LEGENDARY SCULPTOR IS NOW THE SUBJECT OF TWO NEW MONOGRAPHS EACH IS FILLED WITH TOPQUALITY PICTURES AND PROBABLY WEIGHS MORE THAN YOUR COFFEE TABLE DONATELLO SCULPTOR ABBEVILLE 376 PAGES 95 IS BY SIR JOHN POPEHENNESSY THE PROLIFIC BRITISH ART HISTORIAN HE NEVER MET A FACT HE DIDN'T LIKE AND HERE HE DEFTLY GATHERS DETAILS LARGE AND SMALL INTO THE DEFINITIVE STUDY OF THE ARTIST DONATELLO AND HIS WORLD ABRAMS 496 PAGES 95 BY JOACHIM POESCHKE INSTEAD OFFERS A ROMP THROUGH A DISTANT BUT GLITTERING ART WORLD WHAT MIGHT BE CALLED THE DUOMO SCENE OF 15THCENTURY FLORENCE DONATELLO LIVED A CENTURY BEFORE MICHELANGELO BUT HAD THE TEMPERAMENT OF A MODERN ARTIST THAT IS HE WAS AN INSPIRED BRAT VASARI HIS FIRST BIOGRAPHER DESCRIBES AN INCIDENT IN WHICH THE SCULPTOR HURLED A BRONZE HEAD OUT THE WINDOW WHEN THE MERCHANT WHO COMMISSIONED IT CLAIMED HE WAS BEING OVERCHARGED IN HIS ART DONATELLO WAS SIMILARLY COMBATIVE HE REFUSED TO HONOR THE MEDIEVAL CONCEPTION OF ARTISTS AS ANONYMOUS CRAFTSMEN AND HIS WORK MARKS THE TRANSITION FROM THE SCULPTURE OF THE MIDDLE AGES ABSTRACT OVERTLY RELIGIOUS AND CREATED IN THE SERVICE OF THE CHURCH TO SCULPTURE SAID TO GLORIFY MAN BUT THAT OF COURSE REALLY GLORIFIED THE ARTIST HIMSELF IF YOU PREFER YOUR RENAISSANCE ARTISTS IN A MORE SWEETLY DEVOUT MOLD THERE IS NO SHORTAGE OF BOOKS FOR YOU AMONG THEM IS FRA ANGELICO AT SAN MARCO YALE UNIVERSITY PRESS 338 PAGES 60 BY WILLIAM HOOD ONE OF THE MOST VISUALLY ENTICING BOOKS OF THE SEASON IN 1438 WHEN FRA ANGELICO WAS A FORTYSOMETHING FRIAR HE WAS COMMISSIONED TO DECORATE THE NEWLY BUILT DOMINICAN MONASTERY OF SAN MARCO IN FLORENCE THOUGH HE WENT FOR SWEEPING BIBLICAL THEMES HIS WORK STRIKES A NOTE OF OVERWHELMING CALM NO ONE LIKED IT MORE THAN ANOTHER SAINTED MARK MARK ROTHKO THE ABSTRACT EXPRESSIONIST HIMSELF A DEVOTEE OF GLOWING LIGHT AND MEDITATIVE SERENITY HE OFTEN DESCRIBED THE SAN MARCO FRESCOES AS THE ONLY ART IN ITALY WORTH MAKING THE TRIP TO SEE ROTHKO'S LESS IMPERIOUS FELLOW ABSTRACTIONIST LEE KRASNER GETS THE SACREDCOW TREATMENT IN KRASNER ABBEVILLE 126 PAGES 3295 BY ROBERT HOBBS THE BOOK THE FIRST FULLDRESS STUDY OF KRASNER FOLLOWS THE TRAJECTORY OF HER CAREER WITH ADMIRABLE LUCIDITY FROM BEGINNING TO END KRASNER WAS A LOYAL ABSTRACTIONIST HER EARLY WORK WAS ALL TIGHTLY COILED BRUSH STROKES THEY UNFURLED IN THE 1960S INTO GRANDLY ARCHING GESTURES STILL SHE WAS A MINOR FIGURE DISPLAYING LITTLE OF THE VISION OR ORIGINALITY TO BE FOUND IN THE WORK OF HER CELEBRATED COHORTS AS THE WIFE OF JACKSON POLLOCK THE MOST ORIGINAL OF THEM ALL KRASNER BECAME AN EXPERT AT PLAYING THE ROLE OF THE SUFFERING SPOUSE SHE WAS FOND OF RECOUNTING THE SACRIFICES SHE MADE ON BEHALF OF HER HUSBAND BUT HER MARRIAGE TO POLLOCK IN FACT ONLY HELPED HER CAREER BY TURNING HER INTO A HALLOWED MARTYR IN THE EYES OF HER ACOLYTES SHE DIDN'T GET GOING AS A PAINTER UNTIL AFTER POLLOCK'S DEATH IN 1956 YES HE OVERSHADOWED HER BEFORE THEN BUT WHO DIDN'T HE OVERSHADOW SOME ARTISTS SEEM CONTENT TO STAY IN THE SHADOWS THEY ARE INTERESTING PRECISELY BECAUSE THEY ESCHEW THE GRANDIOSE SUCH AN ARTIST WAS CHRISTIAN KOBKE A 19THCENTURY DANISH PAINTER HARDLY KNOWN IN THIS COUNTRY HE SPECIALIZED IN QUIET VIEWS OF COPENHAGEN AND UNPRETENTIOUS PORTRAITS OF HIS FAMILY AND FRIENDS SANFORD SCHWARTZ'S CHRISTEN KOBKE TIMKEN PUBLISHERS 153 PAGES 35 IS THE WORK OF A CRITIC'S CRITIC A WRITER WHOSE PROSE CAN BE AS RIVETING AS THE ART IT DESCRIBES KOBKE BY THE WAY IS THE MAIN FIGURE IN THE GOLDEN AGE OF DANISH PAINTING A TRAVELING EXHIBITION CURRENTLY AT THE LOS ANGELES COUNTY MUSEUM OF ART AN ACCOMPANYING CATALOG OF THE SAME TITLE HUDSON HILLS 237 PAGES 65 SHOWS US WHAT DANISH PAINTERS WERE UP TO IN THE YEARS WHEN THEIR COUNTRYMAN HANS CHRISTIAN ANDERSEN WAS PENNING THUMBELINA AND HIS OTHER UNFORGETTABLE TALES ANOTHER EXHIBITION CATALOG SET FREE ON BOOKSTORE SHELVES IS JOAN MIRO ABRAMS 484 PAGES 75 BY CAROLYN LANCHNER A PORTABLE VERSION OF THE ENORMOUS RETROSPECTIVE NOW AT NEW YORK'S MUSEUM OF MODERN ART MIRO IS THE ONE ESSENTIAL SURREALIST THOUGH THE MOMA SHOW ALMOST DOES HIM IN WITH ITS ALLINCLUSIVE APPROACH BY THE END OF THE EXHIBITION THE OMNIPRESENT STARS AND STICK FIGURES CAN MAKE YOU FEEL AS IF YOU'RE TRAPPED INSIDE SOME SIMULATED PREHISTORIC CAVE OR AN ALTAMIRA THEME PARK ONE ADVANTAGE MS LANCHNER'S BOOK HAS OVER HER SHOW IS THAT YOU CAN CLOSE IT AND SO AVOID SEEING THE ARTIST'S DUDS MIRO WAS AT HIS PEAK IN THE '20S AND '30S WHEN HE TRANSLATED IMAGES FROM HIS RURAL SPANISH CHILDHOOD A HORSE A LADDER A BEARDED FARMER INTO THE GLORIOUS LANGUAGE OF PARIS ABSTRACTION HE ALWAYS INSISTED THAT HE WAS NOT AN ABSTRACT ARTIST AND CRITICS REVIEWING THE SHOW HAVE BEEN DIVIDED OVER WHETHER HIS CLAIM WAS SINCERE PERSONALLY I THINK HE MEANT WHAT HE SAID HIS FANTASIES ARE RIVETING AS THIS BOOK SHOWS BECAUSE THEY'RE ROOTED IN THE REAL REALLIFE ISSUES ESPECIALLY THE MATTER OF PRICE AND ITS RELATION TO VALUE DO NOT NORMALLY CROP UP IN THE PLUMMY WORLD OF HIGHTICKET ART BOOKS SO MASTERPIECES OF THE METROPOLITAN MUSEUM OF ART BULFINCH PRESS 320 PAGES 3950 SEEMS WORTH SINGLING OUT AS THE BEST ARTBOOK BUY OF THE SEASON THE BOOK IS A COMPENDIUM OF THE NEW YORK COLOSSUS'S 300PLUS GREATEST HITS EACH GENEROUSLY REPRODUCED ON ITS OWN PAGE AND BORDERED BY A THOUGHTFUL CAPTION TO THUMB THROUGH THESE PAGES IS TO SEE A PRIVATE POSTMODERN SHOW MIXING IMAGES AND OBJECTS THAT DON'T RIGHTFULLY BELONG TOGETHER A SCULPTURE OF AN EGYPTIAN QUEEN AN EL GRECO VIEW OF TOLEDO A CURVY MIES VAN DER ROHE CHAIR AFTER A DECADE OF NONSTOP EXPANSION THE METROPOLITAN HAS BECOME SO INHOSPITABLY LARGE THAT A THOROUGH VISIT ENTAILS WEARING JOGGING SHOES AND CONSULTING A COMPASS TO FIND YOUR WAY AROUND IN PREPARATION YOU CAN READ THIS BOOK AT HOME AND WEAR YOUR SLIPPERS 9312070081 931207 LAW LEGAL BEAT GEORGIA RULING MAY AID LAWSUITS BY RAPE VICTIMS AGAINST MEDIA BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL A RULING BY THE GEORGIA SUPREME COURT APPEARS TO OPEN THE DOOR FOR INVASIONOFPRIVACY LAWSUITS AGAINST NEWS MEDIA THAT DISCLOSE RAPE VICTIMS' NAMES IN THE CASE GEORGIA'S HIGHEST COURT THREW OUT A 100000 JUDGMENT AGAINST A NEWSPAPER THAT PUBLISHED THE NAME OF AN INTENDED RAPE VICTIM FINDING THAT THE WOMAN LOST HER RIGHT TO PRIVACY WHEN SHE KILLED THE INTRUDER BUT THE COURT'S OPINION SPARING THE MACON TELEGRAPH IN MACON GA FROM A BIG DAMAGE AWARD IS BEING READ NONETHELESS AS BAD NEWS BY MEDIA ATTORNEYS THAT'S BECAUSE IT ESTABLISHES FOR THE FIRST TIME CIRCUMSTANCES UNDER WHICH SUCH SUITS MIGHT BE PERMISSIBLE ABSENT THE UNUSUAL CIRCUMSTANCES IN THE MACON CASE SAID WALTER H BUSH JR AN ATTORNEY AT THE MACON LAW FIRM ANDERSON WALKER & REICHERT WHO REPRESENTED THE TELEGRAPH THIS CASE CAN BE READ AS A BASIS FOR A SUIT FOR INVASION OF PRIVACY FOR THE PUBLICATION OF A NAME IN RAPE CASE MR BUSH SAID ALL STATES HAVE PASSED LAWS INTENDED TO SHIELD THE VICTIMS OF SEXUAL ASSAULT FROM PUBLICITY BY ESTABLISHING CRIMINAL AND CIVIL PENALTIES FOR VIOLATIONS THE PROHIBITIONS CLEARLY BAR PUBLIC OFFICIALS FROM RELEASING THE NAMES LESS CLEAR HAS BEEN WHETHER THE MEDIA CAN BE PUNISHED IF THEY LEARN THE NAMES AND PUBLISH THEM UNTIL NOW COURTS HAVE RULED THAT ONLY IN RARE INSTANCES CAN THE NEWS MEDIA BE PUNISHED FOR PUBLISHING TRUTHFUL INFORMATION OBTAINED LAWFULLY ABOUT MATTERS OF PUBLIC INTEREST INCLUDING A RAPE VICTIM'S NAME MOST RECENTLY THE US SUPREME COURT RULED IN JUNE 1989 THAT A DAMAGE AWARD TO A RAPE VICTIM IN JACKSONVILLE FLA VIOLATED THE FIRST AMENDMENT IN THAT CASE THE FLORIDA STAR A SMALL WEEKLY SERVING JACKSONVILLE'S BLACK COMMUNITY WAS SUED FOR INFLICTING EMOTIONAL DISTRESS AFTER PUBLISHING THE NAME OF A RAPE VICTIM THAT WAS INCLUDED IN A POLICE REPORT THE US SUPREME COURT DECISION OVERTURNING A 97500 DAMAGE AWARD FOR NEGLIGENCE EMPHASIZED THAT ITS DECISION WAS NARROWLY CONFINED TO THE CIRCUMSTANCES IN THAT CASE BUT AS A PRACTICAL MATTER NEWS ORGANIZATIONS IN FLORIDA HAVE SINCE CONSIDERED THEMSELVES FREE TO PUBLISH AND BROADCAST THE NAMES AND PHOTOS OF ALLEGED RAPE VICTIMS THE MOST RECENT EXAMPLE WAS DURING THE RAPE TRIAL OF WILLIAM KENNEDY SMITH IN PALM BEACH FLA THE GEORGIA CASE DIFFERED IN A KEY RESPECT THE INTENDED VICTIM KILLED THE PERPETRATOR WITH A SHOTGUN IN WHAT POLICE LATER DECIDED WAS JUSTIFIABLE HOMICIDE WHEN THE TELEGRAPH PUBLISHED HER NAME SHE COMPLAINED CITING THE STATE'S PROHIBITIONS THE NEWSPAPER NONETHELESS PUBLISHED HER NAME A SECOND TIME IN A FOLLOWUP STORY ABOUT THE ALLEGED ASSAILANT THE PAPER'S EDITORS REASONED THAT IT WAS ENTITLED TO DO SO BECAUSE THE DEATH OF THE ASSAILANT WAS A NEWSWORTHY EVENT BUT A JURY DISAGREED FINDING AGAINST THE TELEGRAPH ON GROUNDS OF INVASION OF PRIVACY IT AWARDED THE WOMAN 30000 IN COMPENSATORY DAMAGES AND 70000 IN PUNITIVE DAMAGES LAWYERS FOR THE PAPER ARGUED THAT BECAUSE OF THE SIMILARITY IN FACTS THE US SUPREME COURT'S DECISION IN THE FLORIDA CASE BARRED A DAMAGE AWARD IN THE GEORGIA CASE BUT THE GEORGIA HIGH COURT UNANIMOUSLY REASONED OTHERWISE RULING THAT THE DAMAGE AWARD WAS BARRED ONLY BECAUSE THE INTENDED VICTIM WAS INVOLVED IN WHAT WAS OTHERWISE IMPORTANT NEWS A HOMICIDE THAT POLICE RULED JUSTIFIABLE WHEN SHE SHOT THE ASSAILANT SHE BECAME THE OBJECT OF A LEGITIMATE PUBLIC INTEREST AND THE NEWSPAPER HAD THE RIGHT UNDER THE FEDERAL AND STATE CONSTITUTIONS TO ACCURATELY REPORT THE FACTS REGARDING THE INCIDENT INCLUDING HER NAME THE COURT SAID IN ITS RULING THE OPINION CAN THUS BE READ TO PERMIT SUITS FOR INVASION OF PRIVACY AGAINST MEDIA OUTLETS THAT DISCLOSE THE IDENTITY OF RAPE VICTIMS IN CASES THAT DON'T INVOLVE SOME ADDITIONAL NEWS EVENT LAWYERS SAY IT'S SOMETHING FOR NEWSPAPER ATTORNEYS TO KEEP IN MIND SAID ATLANTA ATTORNEY ALBERT M PEARSON THE VICTIM'S LAWYER IN THE CASE MACON TELEGRAPH PUBLISHING CO VS TATUM GEORGIA SUPREME COURT ATLANTA GA S93G1065 GREECE IS SET TO BECOME THE LAST EUROPEAN COMMUNITY COUNTRY TO ABOLISH THE DEATH PENALTY A MEASURE FORMALLY ABOLISHING THE PUNISHMENT WAS APPROVED IN PARLIAMENT LAST WEEK AND IS EXPECTED TO BE FINALIZED THIS WEEK AS PART OF A LARGER CRIMINALJUSTICE LAW PUT FORWARD BY THE NEW SOCIALIST GOVERNMENT THE CRIMINALJUSTICE BILL ALSO CONTAINS A CONTROVERSIAL MEASURE THAT CALLS FOR PRISONERS SUFFERING FROM AIDS TO BE RELEASED REGARDLESS OF THE CRIME THEY HAVE COMMITTED THEY HAVE ALREADY BEEN SENTENCED TO DEATH SO LET'S NOT SENTENCE THEM TWICE SAID THE JUSTICE MINISTER GEORGE KOUVELAKIS THE REGULATION CONCERNS THOSE WHO ACTUALLY SUFFER FROM AIDS RATHER THAN TO THOSE WHO CARRY HIV THE HUMAN IMMUNODEFICIENCY VIRUS THAT CAUSES THE DEADLY DISEASE THE MEASURE ALSO PROVIDES THAT ANYONE RELEASED WHO THEN COMMITS ANOTHER CRIME WOULD RETURN TO JAIL THE MEASURE ALREADY HAS PROMPTED REACTIONS FROM PRISONERS SUFFERING FROM OTHER TERMINAL DISEASES LIKE CANCER WHO ARGUE THE LEGISLATION IS DISCRIMINATORY 9312070080 931207 WHAT'S NEWS WORLDWIDE ARAFAT FAILED TO GET THE US TO INTERVENE IN IMPLEMENTING A PEACE PACT THE PLO LEADER PRESSED AN UNWILLING SECRETARY OF STATE CHRISTOPHER TO HELP ENSURE THAT ISRAELI FORCES WILL START WITHDRAWING FROM GAZA AND JERICHO WITHIN A WEEK'S TIME AS PROMISED CHRISTOPHER SAID HE WOULDN'T INTERPOSE HIMSELF IN DISCUSSIONS BETWEEN THE PALESTINIANS AND ISRAELIS ARAFAT WHO MET WITH CHRISTOPHER IN JORDAN HAS INSISTED THAT AN AGREEMENT FOR THE START OF ISRAELI TROOP WITHDRAWAL MUST BE COMPLETED BY MONDAY THE DEADLINE SET IN THE ISRAELPLO PEACE ACCORD ISRAEL'S RABIN HAS SUGGESTED THAT THE DEADLINE CAN'T BE MET PALESTINIAN GUNMEN ATTACKED A VAN IN THE WEST BANK KILLING A JEWISH SETTLER AND HIS TEENAGE SON AND WOUNDING THREE OF THE MAN'S OTHER CHILDREN HUNDREDS OF SETTLERS RESPONDED WITH ANGRY PROTESTS THE RUSSIANS WERE ASKED TO JOIN THE US EUROPE CANADA AND JAPAN IN BUILDING A SPACE STATION THAT WOULD BE THE WORLD'S LARGEST COLLABORATIVE SCIENCE PROJECT RUSSIA IS EXPECTED TO ACCEPT THE INVITATION WHEN VICE PRESIDENT GORE VISITS THERE NEXT WEEK A FLORIDA PROGRAM HAS SUCCEEDED IN STEERING WELFARE RECIPIENTS TOWARD JOBS ACCORDING TO A STUDY THAT COULD INFLUENCE CLINTON'S APPROACH TO WELFARE REFORM THE STUDY PROVIDES FURTHER EVIDENCE SUGGESTING IT IS POSSIBLE TO INCREASE EARNINGS FOR WELFARE RECIPIENTS AND CUT WELFARE SPENDING AT THE SAME TIME SERB FORCES SHELLED A MARKET AND OTHER PARTS OF SARAJEVO KILLING FIVE PEOPLE AND WOUNDING AT LEAST 27 DURING A FIVEHOUR BOMBARDMENT OF THE BOSNIAN CAPITAL SOME SHELLS FELL IN A CEMETERY WHERE MOURNERS WERE BURYING TWO CIVILIANS KILLED LAST WEEK PRESIDENT YELTSIN DOUBLED RUSSIA'S MINIMUM MONTHLY WAGE FOR GOVERNMENT WORKERS IN A BID FOR VOTER SUPPORT AHEAD OF SUNDAY'S PARLIAMENTARY ELECTIONS THE BENCHMARK WAGE LEVEL WAS RAISED TO 12 THOUGH THE AVERAGE MONTHLY WAGE IN RUSSIA IS ABOUT 60 SEPARATELY SOME MINERS WENT ON STRIKE BUT ARE EXPECTED TO RETURN TO WORK TODAY A FEDERAL JUDGE DISMISSED A CRIMINAL INDICTMENT CHARGING SEN DURENBERGER WITH FALSIFYING EXPENSE ACCOUNTS THE JUDGE RULED THAT US PROSECUTORS IMPROPERLY SUBMITTED PRIVILEGED SENATE RECORDS TO BUILD A CASE AGAINST THE MINNESOTA REPUBLICAN THE SUPREME COURT ALLOWED THE BOY SCOUTS TO EXCLUDE A BOY WHO HAD REFUSED TO ACKNOWLEDGE A DUTY TO GOD THE HIGH COURT REJECTING THE APPEAL OF THE 11YEAROLD ILLINOIS BOY LET STAND A RULING THAT SAID A FEDERAL LAW PROHIBITING BIAS IN PUBLIC ACCOMMODATIONS DOESN'T COVER THE BOY SCOUTS AN EAST GERMAN SPY CHIEF WAS CONVICTED OF TREASON AND BRIBERY AND SENTENCED TO SIX YEARS IN A GERMAN PRISON MARKUS WOLF CONSIDERED THE MOST SUCCESSFUL COMMUNIST INTELLIGENCE CHIEF DIRECTED 500 AGENTS IN WEST GERMANY AS WELL AS A NETWORK OF SPIES ABROAD ASTRONAUTS REPLACED FAULTY SOLAR POWER PANELS ON THE 3 BILLION HUBBLE TELESCOPE COMPLETING THE MOST IMPORTANT REPAIR JOB OF SHUTTLE ENDEAVOUR'S 11DAY MISSION THE ASTRONAUTS LABORED FOR MORE THAN SIX HOURS IN THE SECOND OF FIVE SCHEDULED SPACEWALKS VENEZUELA'S PRESIDENTELECT URGED HIS OPPONENTS TO JOIN WITH HIM IN SOLVING THE COUNTRY'S ECONOMIC AND SOCIAL PROBLEMS SPEAKING A DAY AFTER HE WON VENEZUELA'S PRESIDENTIAL ELECTION POPULIST LAWYER RAFAEL CALDERA SAID HE HOPED TO ALLAY ANY PUBLIC FEARS OF A NEW COUP ATTEMPT AFTER TWO COUPS IN 1992 THE US AND RUSSIA ARE DISCUSSING A PLAN TO STOP TARGETING THEIR LONGRANGE NUCLEAR MISSILES AT EACH OTHER PRESIDENT CLINTON TOLD REPORTERS THE MISSILES INSTEAD MAY BE AIMED INTO THE OCEAN US OFFICIALS SAID WHATEVER ARRANGEMENT EVENTUALLY IS MADE HOWEVER WON'T BE VERIFIABLE ACCORDING TO SEVERAL NUCLEAR EXPERTS CLINTON DEFENDED THE DECISION TO FLY SOMALI CLAN LEADER AIDID ABOARD A US JET TO PEACE TALKS IN ETHIOPIA LAST WEEK THE PRESIDENT SAID HIS SPECIAL ENVOY TO SOMALIA MADE THE DECISION WITHOUT TIME TO CONSIDER OTHER OPTIONS AIDID HAD BEEN THE TARGET OF AN INTENSE MANHUNT AFTER THE DEATHS OF PAKISTANI AND US PEACEKEEPERS DIED FRANK ZAPPA 52 INNOVATIVE COMPOSERMUSICIAN WHO BECAME ONE OF POP MUSIC'S PREMIER ICONOCLASTS SATURDAY IN LOS ANGELES OF PROSTATE CANCER 9312070079 931207 POLITICS & POLICY INDICTMENT OF DURENBERGER IS DISMISSED BY US JUDGE WASHINGTON A FEDERAL JUDGE DISMISSED A FELONY INDICTMENT CHARGING SEN DAVID DURENBERGER WITH FALSIFYING EXPENSES RULING THE PROSECUTION IMPROPERLY SUBMITTED PRIVILEGED SENATE RECORDS AS EVIDENCE BUT US DISTRICT JUDGE WARREN URBOM ALL BUT INVITED PROSECUTORS TO REINDICT SEN DURENBERGER RELIANCE UPON THE OFFENSIVE EVIDENCE DOES NOT APPEAR TO BE NECESSARY HE WROTE JUDGE URBOM BLASTED GOVERNMENT PROSECUTORS SAYING THEIR CONDUCT REPRESENTED EITHER OVERZEALOUS PROSECUTION OR REPEATED INADVERTENCE BORDERING ON RECKLESSNESS AMONG OTHER THINGS HE SAID THE PROSECUTORS CLAIMED THE GRAND JURY HAD NOT BEEN EXPOSED TO THE SENATE REPORTS SEN DURENBERGER R MINN WAS CHARGED WITH ILLEGALLY BILLING THE GOVERNMENT FOR LIVING EXPENSES IN MINNESOTA HE HAS BEEN DENOUNCED BY THE SENATE AND HIS LAW LICENSE WAS SUSPENDED OVER THE SAME ISSUE I AM GRATEFUL FOR THE JUDGE'S ORDER WHICH VINDICATES AN IMPORTANT CONSTITUTIONAL PRINCIPLE SAID THE SENATOR I HOPE IT ALSO REPRESENTS THE END OF THIS UNWARRANTED PROSECUTION JUSTICE DEPARTMENT OFFICIALS SAID THEY WERE STUDYING THE RULING AND HAD NO IMMEDIATE COMMENT 9312070078 931207 WHO'S NEWS SCOTTS CO SCOTTS CO MARYSVILLE OHIO JACK VAN FOSSEN 56 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MAKER AND MARKETER OF LAWN AND TURFCARE PRODUCTS MR VAN FOSSEN IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RED ROOF INNS INC HE SUCCEEDS JOSEPH L RICE III WHO RESIGNED RECENTLY 9312070077 931207 HARD SELL MADISON AVENUE SLOW TO GRASP INTERACTIVITY COULD BE LEFT BEHIND AN AD REVOLUTION IS LIKELY BUT WHAT WILL REPLACE JINGLES AND REPETITION VIRTUALREALITY BUBBLE YUM BY TIMOTHY K SMITH AND THOMAS R KING STAFF REPORTERS OF THE WALL STREET JOURNAL A PERFECTLY SINCERE ADVERTISEMENT FROM 1880 READS GROVE'S TASTELESS CHILL TONIC MAKES CHILDREN AND ADULTS AS FAT AS PIGS SURE THE MESSAGE SOUNDS INSANE TO MODERN EARS BUT THE SLOGAN'S CADENCE IS INSTANTLY COMFORTABLY RECOGNIZABLE SO LITTLE HAVE THE CONVENTIONS OF COMMERCIAL SPEECH CHANGED WHAT SOCIETY WANTS IN A DIETARY SUPPLEMENT MAY BE COMPLETELY REVERSED BUT MORE THAN A CENTURY LATER THE SYNTAX FOR MOVING THE GOODS REMAINS THE SAME NOW A NEW MEDIA AGE APPEARS TO BE DAWNING ONE IN WHICH MANY OF THE OLD RULES OF SALESMANSHIP WILL NO LONGER APPLY IN A DIGITAL INTERACTIVE WORLD IT IS HARD TO BELIEVE THAT ANYONE WILL SIT STILL FOR NUMBING REPETITIONS OF INTRUSIVE JINGLES OR FOR 30SECOND SPOTS OF UNREWARDING COMMERCIAL THEATER AND IN A WORLD WHERE PEOPLE CAN TALK BACK TO THEIR TELEVISION SETS THE AGEOLD QUESTION OF JUST HOW ADVERTISING WORKS AND WHETHER IT WORKS AT ALL MAY FINALLY BE ANSWERED THIS IS GOING TO MAKE THE EMPEROR PUT HIS CLOTHES BACK ON SAYS WILLIAM BACKER WHO JUST RETIRED AS VICE CHAIRMAN OF AD AGENCY BACKER SPIELVOGEL BATES WORLDWIDE A UNIT OF SAATCHI & SAATCHI CO WE'RE GOING TO GET CLOSER TO BEING ABLE TO ASCERTAIN THE CAUSES OF PERSUASION YET THE 138 BILLION ADVERTISING INDUSTRY SEEMS UNPREPARED FOR AN INTERACTIVE FUTURE THE AD BUSINESS IS STILL STRUGGLING TO RECOVER FROM A SEVERE RECESSION LAYOFFS AND OTHER CUTBACKS HAVE LEFT AD AGENCIES WITHOUT THE RESOURCES TO REINVENT THEMSELVES EVEN THOUGH THAT IS JUST WHAT THEY MAY HAVE TO DO GIVEN THE RECENT FLURRY OF MULTIMEDIA DEALMAKING FROM BELL ATLANTIC CORP'S PROPOSED ACQUISITION OF TELECOMMUNICATIONS INC TO THE BATTLE OVER PARAMOUNT COMMUNICATIONS INC WHILE THE RACE IS ON AMONG BIG MEDIA COMPANIES TO DEVELOP INTERACTIVE TECHNOLOGIES MANY AD AGENCIES AND ADVERTISERS SEEM TO BE STILL LACING UP THEIR TRACK SHOES A FEW OF THE BIGGER AGENCIES INCLUDING LEO BURNETT CO FOOTE CONE & BELDING COMMUNICATIONS INC OMNICOM GROUP INC'S DDB NEEDHAM AND WPP GROUP PLC'S OGILVY & MATHER ARE FORMALLY LOOKING INTO INTERACTIVITY INTERPUBLIC GROUP OF COS AN AGENCY HOLDING COMPANY IS SETTING UP A MULTIMEDIA LAB IN PART TO TEST INTERACTIVE ADS WHILE ITS MCCANNERICKSON AGENCY IS CREATING A SEPARATE INTERACTIVE UNIT BUT MOST AGENCY EFFORTS ARE SMALLSCALE AND HIGHLY THEORETICAL AD EXECUTIVES TEND TO PLAY DOWN INTERACTIVITY'S POTENTIAL THE IDEA OF PEOPLE SITTING IN THEIR LIVING ROOMS INTERACTING ROUND THE CLOCK IS JUST LUDICROUS SAYS JAYNE SPITTLER A VICE PRESIDENT WITH LEO BURNETT IT'S POSSIBLE OF COURSE THAT THE HUGE RECENT INVESTMENTS IN MULTIMEDIA COULD TURN OUT TO BE A GIANT INDUSTRIAL GAFFE LIKE THE GENERAL ASSUMPTION IN THE 1940S THAT EVERYONE WOULD SOON BE COMMUTING BY PERSONAL AIRPLANE BUT IF NOT COMING LATE TO THE INFORMATION SUPERHIGHWAY COULD BE ESPECIALLY DANGEROUS FOR ADVERTISING AGENCIES BECAUSE OTHER KINDS OF COMPANIES INCLUDING ENTERTAINMENT EMPIRES LIKE MICHAEL OVITZ'S CREATIVE ARTISTS AGENCY AND TIME WARNER INC ARE ALREADY WORKING ON A NEW GENERATION OF ADS FOR AN INTERACTIVE WORLD SO ARE SCORES OF STARTUP INTERACTIVETECHNOLOGY COMPANIES MANY OF THESE HAVE ALREADY TESTED INTERACTIVE ADS BUT THEY HAVE NEARLY ALWAYS DEALT DIRECTLY WITH ADVERTISERS EFFECTIVELY CUTTING OUT THE AD AGENCIES ALTOGETHER AD AGENCIES ARE GOING TO GET KILLED IF THEY DON'T WAKE UP SOON WARNS MARTIN NISENHOLTZ SENIOR VICE PRESIDENT AND DIRECTOR OF ELECTRONIC MARKETING AT OGILVY & MATHER'S DIRECTMARKETING UNIT IT'S THE LARGEST SINGLE CASE OF DENIAL I HAVE EVER SEEN BY RIGHTS MADISON AVENUE SHOULD BE AHEAD OF THE CROWD THE AD INDUSTRY FIRST BEGAN FLIRTING WITH INTERACTIVITY ABOUT 15 YEARS AGO LONG BEFORE IT BECAME THE FASHION IT IS TODAY IN RECENT YEARS BIG ADVERTISERS INCLUDING PEPSICO INC CHRYSLER CORP AND AMERICAN TELEPHONE & TELEGRAPH CO HAVE FIDDLED WITH INTERACTIVE TESTS BUT THE EFFORTS SO FAR HAVE BEEN ALMOST UNIFORMLY CRUDESHORT ON SALESMANSHIP AND DREARILY LONG ON GIMMICKS AN INTERACTIVE COKE TEST ON CANADA'S LE GROUPE VIDEOTRON CABLE SYSTEM TWO YEARS AGO GAVE VIEWERS THE OPTION OF WATCHING A COKE SPOT IN FOREIGN LANGUAGES AN INTERACTIVE CHEVROLET TRUCK ADVERTISEMENT TESTED LAST YEAR IN BARS WAS SO RUDIMENTARY THAT IT HAD NO SOUND NEWSWEEK INTERACTIVE A CDROM VERSION OF THE MAGAZINE OFFERS COMMERCIALS FOR AT&T AND FORD MOTOR CO'S LINCOLNMERCURY DIVISION AMONG OTHERS BUT GIVES USERS THE OPTION NOT TO WATCH THE ADS AT ALL NEWSWEEK SAYS IT IS TOO EARLY TO TELL WHETHER PEOPLE VOLUNTARILY TUNE IN TO USE A FILM ANALOGY THIS IS 1926 A YEAR FROM NOW 'THE JAZZ SINGER' WILL BE COMING OUT SAYS JOSHUA HARRIS PRESIDENT OF CONSULTANTS JUPITER COMMUNICATIONS ALLUDING TO THE TRANSITION FROM SILENT FILMS TO TALKIES TIME WARNER HOPES TO TAKE INTERACTIVE ADS A LEAP FURTHER WITH AN INTERACTIVE CABLE NETWORK IT IS LAUNCHING WITH ADS IN ORLANDO FLA NEXT SPRING YOU'LL HAVE VENUES A MALL FOR AUTOMOBILES AND ANOTHER MALL FOR DIFFERENT TYPES OF SHOPPING AND SERVICES SAYS BRUCE JUDSON GENERAL MANAGER OF MULTIMEDIA PRODUCTS AND SERVICES FOR THE COMPANY'S TIME INC UNIT SEVERAL ADVERTISERS INCLUDING CHRYSLER HAVE SIGNED ON FOR THE TEST EACH WILL DESIGN ITS OWN VIDEO STOREFRONT TO BECKON VIEWERS INSIDE TIME WARNER IS ALSO CONSIDERING CREATING AN INTERACTIVE CATALOG FOR ITS WARNER BROS STUDIO STORES USING BUGS BUNNY TO GUIDE VIEWERS THROUGH THE MERCHANDISE BUT TIME WARNER IS SKETCHY ABOUT OTHER DETAILS HOW THE MECHANICS WILL WORK WE DON'T KNOW YET MR JUDSON SAYS VIACOM INC WHICH IN PARTNERSHIP WITH AT&T IS SCHEDULED TO TEST ITS OWN INTERACTIVE CABLETV SYSTEM LATER NEXT YEAR IN CASTRO VALLEY CALIF ALSO PLANS TO EXPERIMENT WITH INTERACTIVE ADS THOUGH LIKE TIME WARNER IT WON'T DISCUSS SPECIFICS CERTAINLY THE POSSIBILITIES ARE ENDLESS AN INTERACTIVE CAR AD FOR EXAMPLE COULD PROVIDE AS MUCH INFORMATION AS ANY REASONABLE CUSTOMER COULD WANT SUGGESTS RICHARD M SMITH EDITOR IN CHIEF AND PRESIDENT OF WASHINGTON POST CO'S NEWSWEEK WANT TO SEE THE CAR IN GREEN JUST HIT A BUTTON WANT TO SEE THE TWODOOR MODEL HIT ANOTHER BUTTON PERHAPS MORE IMPORTANT AD EXECUTIVES SAY INTERACTIVE ADS WILL HELP ADVERTISERS COLLECT AND SIFT INFORMATION ABOUT POTENTIAL CUSTOMERS CHEVROLET'S INTERACTIVE TRUCK AD LAST YEAR FOR EXAMPLE WASN'T MUCH TO LOOK AT IT USED ONLY THE SIMPLEST COMPUTER GRAPHICS BUT IT ASKED VIEWERS WHO WANTED MORE INFORMATION TO PUNCH THEIR NAME AND ADDRESS INTO THE SYSTEM'S TABLETOP CONTROL BOX ALLOWING CHEVROLET TO COMPILE AN INSTANT MAILING LIST OF PROSPECTIVE CUSTOMERS THE AD WAS BEAMED VIA SATELLITE AND FM RADIO WAVES TO TV SCREENS IN SEVERAL HUNDRED BARS BY NTN COMMUNICATIONS INC AN INTERACTIVEGAME FIRM CHEVROLET DIDN'T PAY FOR THE TEST ALTHOUGH IT DID GIVE NTN BASED IN CARLSBAD CALIF A NEW TRUCK IN THE FUTURE THAT PROCESS WILL SURELY BE FAR MORE SOPHISTICATED PARTICULARLY WHEN THE INTERACTIVETV SET OR COMPUTER IS HOOKED UP IN AN INDIVIDUAL'S HOME AND MAY DOUBLE AS A DATE BOOK A FLOWERDELIVERY SERVICE FOR EXAMPLE MIGHT REMIND CONSUMERS ABOUT A SPOUSE'S IMMINENT BIRTHDAY AND SOLICIT AN ORDER THAT KIND OF SPECIFICITY THOUGH RAISES A FRIGHTENING SPECTER FOR AD AGENCIES FOR GENERATIONS AGENCIES HAVE ARGUED TO THEIR CLIENTS THAT ADVERTISING PLAYS A CRITICAL ROLE IN PROMOTING AND BUILDING BRANDS BUT IT HAS BEEN PRACTICALLY IMPOSSIBLE FOR MOST ADVERTISERS TO ASSESS JUST HOW A PARTICULAR COMMERCIAL INFLUENCED THEIR BUSINESS SO THEY HAVE SPENT LAVISHLY TO COVER MANY BASES I AM CERTAIN THAT HALF OF THE MONEY I SPEND ON ADVERTISING IS COMPLETELY WASTED GOES AN OLD SAW OFTEN ATTRIBUTED TO RETAILER JOHN WANAMAKER THE TROUBLE IS I DON'T KNOW WHICH HALF NOW THAT PRINCIPLE MAY CHANGE BECAUSE INTERACTIVITY MAY ALLOW ADVERTISERS TO GET THEIR HANDS ON REALTIME DATA TELLING THEM WHO WATCHED THEIR COMMERCIAL WHEN AND PRECISELY HOW THEY REACTED TO IT THE NEW RIGOR WOULD BE BAD NEWS FOR PRICEY AD RATES WHICH MAY NO LONGER BE BASED ON ESTIMATED AUDIENCE SHARE OR READERSHIP CLAIMS BUT ON ACTUAL NUMBERS IF FOR INSTANCE AN ADVERTISER MAKES AVAILABLE AN INTERACTIVE MESSAGE IT WILL PRESUMABLY BE ABLE TO TRACK HOW MANY USERS TAKE THE TROUBLE TO CALL IT UP ALL MEDIA HAVE BEEN MAKING UP NUMBERS FOR ADVERTISING FOR YEARS SAYS ROGER FIDLER DIRECTOR OF THE KNIGHTRIDDER INFORMATION DESIGN LABORATORY A RESEARCH ARM OF KNIGHTRIDDER INC NOBODY REALLY KNOWS FOR SURE HOW MUCH TIME IS SPENT WITH AN AD NOW FOR THE FIRST TIME THEY WILL HAVE SOME DATA ALL THIS ASSUMES OF COURSE THAT CONSUMERS CAN BE PERSUADED TO INTERACT WITH ADVERTISEMENTS THAT SHOULD BE RELATIVELY EASY FOR SOME PRODUCT CATEGORIES WHY NOT IN AN IDLE MOMENT SAIL A VIDEO CHARTER SLOOP UP THE VIRTUAL COAST OF MAINE BUT FOR OTHER THINGS ESPECIALLY DULL OR UNNECESSARY GOODS THAT HAVE BEEN SERVED SO WELL BY THE JINGLE IT WILL BE TRICKY LAUNDRY SOAP IS JUST NOT INTERESTING TO ME AND I'M THE ONE WHO DOES THE LAUNDRY IN MY HOUSE SAYS WALTER BENDER PRINCIPAL RESEARCH SCIENTIST AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S MEDIA LABORATORY AND NO ONE HAS YET SOLVED THE RIDDLE OF HOW TO SELL A POTATO CHIP OR CONDUCT A COLA WAR THROUGH AN INTERACTIVE MULTIMEDIA SERVICE INTERACTIVE ADVERTISING SEEMS BEST SUITED TO COMPLICATED THINGS LIKE CONSUMER ELECTRONICS FINANCIAL SERVICES AND CARS CHRYSLER FOR EXAMPLE SAYS IT HAS BEEN RECEIVING 48000 TO 60000 QUERIES A YEAR FROM POTENTIAL CUSTOMERS THROUGH THE PRODIGY ONLINE COMPUTER SERVICE A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO PRODIGY KNOWS SOMETHING ABOUT THE INDIVIDUALS WHO LOG ON TO THE SYSTEM AND IT SHOOTS DIFFERENT ADVERTISEMENTS TO DIFFERENT SUBSCRIBERS DEPENDING ON THEIR AGE THEIR SEX AND THE AREA OF THE SERVICE THEY ARE VISITING WHILE SUBSCRIBERS GO ABOUT THEIR INTERACTIVE BUSINESS READING THE NEWS OR PAYING BILLS FOR EXAMPLE COMMERCIAL MESSAGES APPEAR AT THE BOTTOM OF THE SCREEN INVITING THEM TO DIVE IN AND LEARN MORE PRODIGY CHARGES ADVERTISERS 27000 A MONTH FOR A FIVESCREEN AD WHICH IS VIEWED BY ABOUT 20000 PEOPLE A MONTH ABOUT 5000 OF THOSE USERS WILL REQUEST MORE INFORMATION WORKING OUT TO 540 FOR EACH QUERY THOSE WHO TAP INTO CHRYSLER'S MESSAGE SEE A FULLCOLOR IMAGE OF A CHRYSLER MODEL AND ARE GIVEN THE OPTION TO LOOK AT OTHER MODELS VIA A KIND OF ONSCREEN BROCHURE THE 48000 TO 60000 REQUESTS FOR MORE INFORMATION THE COMPANY GETS ANNUALLY THROUGH THE SYSTEM COMPARE WITH 35000 ANNUALLY THROUGH ITS TOLLFREE NUMBER ACCORDING TO JAMES CHERFOLI CHRYSLERPLYMOUTH MERCHANDISING MANAGER BUT IS IT REALLY INFORMATION THAT SELLS CARS MR CHERFOLI SAYS THE COMPANY HASN'T YET DETERMINED HOW MANY ONLINE PROSPECTS HAVE MADE ACTUAL PURCHASES JIM JULLO CHRYSLER'S DIRECTOR OF MARKETING OPERATIONS BREAKS CARBUYING DOWN INTO THREE PHASES NOTICING THE CAR IN THE FIRST PLACE GATHERING INFORMATION ABOUT IT AND GOING TO THE SHOWROOM INTERACTIVE PROGRAMS LIKE PRODIGY DO AN EXCELLENT JOB OF PHASE TWO MR JULLO SAYS BUT NOT MUCH IN THE FIRST AND THIRD PHASES PARTLY TO ADDRESS THAT PROBLEM CHRYSLER IS GETTING INVOLVED EARLY IN THE NEXT WAVE OF INTERACTIVE EXPERIMENTS BESIDES TIME WARNER'S ORLANDO TEST IT AGREED EARLIER THIS MONTH TO BECOME THE FIRST SPONSOR OF INTERACTIVE NETWORK INC A COMPANY IN MOUNTAIN VIEW CALIF THAT BEAMS INTERACTIVE SPORTS AND GAMESHOW PROGRAMS TO SUBSCRIBERS COCACOLA CO HAS ALREADY TRIED A SIMILAR ROUTE IN AN EXPERIMENT TWO YEARS AGO IN MONTREAL THE COMPANY SPONSORED A CONCERT BY CANADIAN POP STAR CELINE DION THAT WAS BROADCAST TO ABOUT 150000 HOMES SERVED BY LE GROUPE VIDEOTRON'S INTERACTIVETV SYSTEM DURING SIX COMMERCIAL INTERLUDES PREPARED WITH THE HELP OF COKE'S LONGTIME AD AGENCY MCCANNERICKSON VIEWERS WERE OFFERED FUN THINGS TO DO WITH THEIR REMOTE CONTROLS THEY WERE ASKED WHICH WAS THEIR FAVORITE COCACOLA PRODUCT IF THEY PICKED SPRITE UP POPPED A SPRITE AD THEY WERE GIVEN THE OPTION OF WATCHING COKE COMMERCIALS IN OTHER LANGUAGES JAPANESE TURNED OUT TO BE THE FAVORITE THEY WERE OFFERED A CHANCE TO PARTICIPATE IN A COKE PROMOTION OFFERING DENIM JACKETS AND MOUNTAIN BIKES THEY WERE GIVEN MULTIPLECHOICE TRIVIA QUIZZES ABOUT COKE AND AT THE END OF THE CONCERT THEY COULD PHONE A TOLLFREE NUMBER TO SEE HOW THEY HAD DONE AND WHETHER THEY HAD WON A PRIZE MCCANN WON'T COMMENT ON THE COST OR RESULTS A STEADY DIET OF SUCH STUNTS PROBABLY WOULDN'T BE SUSTAINABLE HOWEVER MANY PEOPLE STUDYING MULTIMEDIA TECHNOLOGIES SAY THAT IF ADVERTISING IS TO SUCCEED IN AN INTERACTIVE WORLD IT WILL SIMPLY HAVE TO BECOME BETTER THAN IT IS TODAY PRODUCTION VALUES CLEVERNESS THE ENGAGEMENT QUOTIENT THESE PERMIT THE ANSWER TO THE RIDDLE OF INTERACTIVE ADVERTISING SAYS VINCENT GROSSO PROJECT DIRECTOR FOR INTERACTIVE TELEVISION AT AT&T SOME INDUSTRY EXECUTIVES PREDICT A RETURN TO 1950SSTYLE ADVERTISERSPONSORED PROGRAMMING SPONSORSHIP COULD EVEN BECOME A STRAIGHT TRANSACTION THEY SAY AN ADVERTISER MIGHT OFFER TO PAY FOR A CUSTOMER'S PAYPERVIEW BROADWAY SHOW IF THE CUSTOMER AGREED TO ACCEPT COMMERCIALS WITH IT OTHERS IN THE INDUSTRY ARE EXPERIMENTING WITH THE STATEOFTHEART IN COMPUTER INTERACTIVITY THE VIDEO GAME CHILDREN CAN PLAY A NEW GAME CALLED MCDONALD'S TREASURE ISLAND ON THE SEGA GENESIS VIDEO SYSTEM PEPSICO'S FRITOLAY UNIT IS HAS LICENSED A VIDEO GAME ITS SECOND FEATURING THE COMMERCIAL CARTOON CHARACTER CHESTER CHEETAH LAST SUMMER A VIRTUALREALITY VIDEO GAME WAS SENT ON A TOUR OF THE NATION'S MALLS BY RJR NABISCO'S LIFESAVERS DIVISION PLAYERS STRAPPED ON GOGGLES AND GLOVES AND TRAVELED TO THE COMPUTERGENERATED PLANET BUBBLE YUM WHERE THEY TRIED TO COLLECT CHUNKS OF FLOATING BUBBLE GUM SHOOTING AT COMPETITORS AND TRYING TO AVOID A MEDDLESOME VIRTUAL BIRD FOR ALL OF THE FRESH EMPHASIS ON SEDUCTION THAT INTERACTIVITY SEEMS TO DEMAND SOME ADVERTISERS ARE LIKELY TO FIND WAYS TO MAKE ADS AS INTRUSIVE AS EVER AND MAYBE MORE SO A GLIMPSE OF THAT IS ON DISPLAY AT THE OFFICES OF GENERAL MEDIA PUBLISHING GROUP JUST FOUR BLOCKS WEST OF MADISON AVENUE KATHY KEATON PRESIDENT AND CHIEF OPERATING OFFICER OF THE MAGAZINE COMPANY DEMONSTRATES A COMPUTER IS SWITCHED ON A CDROM DISK IS INSTALLED AND THE LOGO OF PENTHOUSE MAGAZINE A GENERAL MEDIA PUBLICATIONAPPEARS ON THE SCREEN A VIDEO GAME ENSUES IN WHICH A BLONDE A BRUNETTE AND A REDHEAD UNDRESS AND CAVORT ON COMMAND THEY COULD BE WEARING CLOTHES BY REEBOK MS KEATON SUGGESTS AS SHE EXPLAINS THE SYSTEM'S ADVERTISING POTENTIAL THE COMPUTER FALLS IDLE AND THE DIGITAL IMAGE OF A NUDE MODEL IS FROZEN ON THE SCREEN SUDDENLY IT BECOMES APPARENT JUST HOW INTRUSIVE INTERACTIVE ADVERTISING HAS THE POTENTIAL TO BE SENSING THAT NOBODY HAS PAID ATTENTION FOR A FULL TWO MINUTES THE COMPUTER COMES ALIVE THE MODEL ROUSES HERSELF POUTS PRETTILY PEERS OUT FROM THE SCREEN AND DEMANDS WHAT AM I A SCREENSAVER 9312070076 931207 BUSINESS BRIEF HIBERNIA CORP COMPANY AGREES TO ACQUIRE FIRST CONTINENTAL BANCSHARES HIBERNIA CORP AGREED TO ACQUIRE FIRST CONTINENTAL BANCSHARES INC FOR 628 MILLION IN STOCK AND CASH CONTINUING AN ACQUISITION SPREE BY LOUISIANA'S LARGEST BANK CLOSELY HELD FIRST CONTINENTAL BASED IN GRETNA LA NEAR NEW ORLEANS HAS 396 MILLION IN ASSETS AND EIGHT BRANCHES THIS DEAL AND OTHER PENDING ACQUISITIONS WOULD INCREASE HIBERNIA'S ASSETS BY 900 MILLION OR 20 TO 55 BILLION THE PURCHASE PRICE WHICH INCLUDES 337 MILLION IN STOCK AND 291 MILLION IN CASH WILL BE USED TO PAY OFF HOLDERS OF FIRST CONTINENTAL'S DEBT AS WELL AS HOLDERS OF COMMON AND PREFERRED STOCK IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY HIBERNIA FELL 125 CENTS TO 725 9312070075 931207 BUSINESS BRIEF NISSAN MOTOR CO RECALL OF 33000 VANS MADE IN '87 '88 AND '90 IS SLATED NISSAN MOTOR CORP USA THE US UNIT OF JAPAN'S NISSAN MOTOR CO SAID IT IS RECALLING ABOUT 33000 1987 '88 AND '90 NISSAN VANS TO REPAIR A DEFECT THAT COULD LEAD TO ENGINECOMPARTMENT FIRES NISSAN SAID A BROKEN FAN BELT COULD CAUSE THE VANS TO OVERHEAT AND RESULT IN AN ENGINECOMPARTMENT FIRE THE COMPANY SAID THERE HAVE BEEN THREE REPORTED INJURIES RESULTING FROM THIS CONDITION TO RECTIFY THE PROBLEM NISSAN WILL REPLACE PARTS IN THE COOLING SYSTEM INCLUDING THE INSTALLATION OF A LONGLIFE FAN BELT NISSAN SAID IT STOPPED PRODUCING THIS TYPE OF VAN IN 1990 AND THAT THE RECALL AFFECTS VEHICLES IN THE US ONLY 9312070074 931207 LEISURE & ARTS STYLE CHRISTMAS BOOKS A HOLIDAY SAMPLER BY RAYMOND SOKOLOV THE LOUVRE HAS DEVOTED AN ENTIRE FLOOR OF ITS HUGE NEW RICHELIEU WING TO THE DECORATIVE ARTS FROM CERAMICS TO SILVER TO TEXTILES AND JEWELS THESE FABULOUSLY WORKED THREEDIMENSIONAL OBJECTS USUALLY GET SHORT SHRIFT FROM MUSEUMS AND FROM ART CRITICS WHOSE DEFINITION OF HIGH ART SEEMS TO CUT OUT EVERYTHING THAT ISN'T A PAINTING SO ALL PRAISE TO KNOPF FOR COMMITTING ITS RESOURCES SO LAVISHLY TO PUBLISHING BETTY RING'S SCHOLARLY EVEN CEREBRAL TWOVOLUME SURVEY OF GIRLHOOD EMBROIDERY AMERICAN SAMPLERS & PICTORIAL NEEDLEWORK 16501850 583 PAGES 125 BOXED SAMPLERS WERE SHOWPIECES OF NEEDLEWORK THAT GIRLS USED TO MAKE AT SCHOOL AS PART OF A PROPER FEMALE EDUCATION BUT MS RING'S AWESOME RESEARCH AND THE 623 ILLUSTRATIONS 376 IN COLOR SHOW HOW THIS USEFUL ACCOMPLISHMENT DEVELOPED ALL OVER EARLY AMERICA INTO AN ART FORM PRACTICED BY SOME VERY SOPHISTICATED ADOLESCENTS BRILLIANTLY INSTRUCTED BY EXPERT TEACHERS MS RING HAS IDENTIFIED MANY OF THESE ARTBRINGERS AND TRACED THE STYLES THEY KINDLED IN THEIR CLASSROOMS FROM THE SIMPLE ALPHABETS EVERYONE KNOWS TO ELABORATE NEOCLASSICAL SCENES OR MOURNING PICTURES EERILY PREMONITORY OF EDWARD GOREY AT HIS MOST ELDRITCH TO HERALDIC EMBLEMS PORTRAITS AND A SUMPTUOUS STRAWBERRY THIS IS ELEGANT STUFF ELEGANTLY PRESENTED THE SAME CAN BE SAID FOR THE MAGNIFICENT SURVEY TILES 100 YEARS OF ARCHITECTURAL DECORATION ABRAMS 236 PAGES 60 BY HANS VAN LEMMEN THE RANGE IS ENORMOUS FROM THE TANGLED MEDIEVAL MUDEJAR GEOMETRIES OF THE ALHAMBRA OUTSIDE GRANADA IN MOORISH SPAIN TO THE HUGE SUBWAY MAP COVERING A WALL OF A HIGHRISE APARTMENT BUILDING PUT UP IN PARIS IN 1986 MR VAN LEMMEN LIMITS HIMSELF TO EUROPE WHERE THE GREATEST DEGREE OF REFINEMENT IN TILES MAY HAVE BEEN REACHED IN THE 18TH CENTURY IN PORTUGAL ARRESTING EXAMPLES ARE NOW ON VIEW AT THE NATIONAL GALLERY'S PORTUGUESE BAROQUE SHOW INCLUDING A VERY LONG WALL DEPICTING LISBON IN STILLVIVID BLUE THE CHAPTER ON THE NEW WORLD WRITTEN BY SUSAN TUNICK NECESSARILY CONDENSED DOES HIT THE HIGH SPOTS NOTABLY THE ROOKWOOD TILES IN NEW YORK SUBWAY STATIONS THAT REMIND STRAPHANGERS OF THE SHAPE OF THINGS ABOVE GROUND BETTER STILL TRIBUTE IS PAID TO ROOKWOOD AND PEWABIC AND THE OTHER COMPANIES THAT COLLABORATED ON THE RICHLY GLAZED ARCHES OF THE LOBBY OF THE GUARDIAN BUILDING IN DETROIT 1929 EXTRAVAGANT AS MANY OF THESE TILED SPACES MAY LOOK ALL JUMBLED TOGETHER IN ONE PLACE THEY PALE BY COMPARISON WITH THE INTERIORS BULFINCH PRESS 235 PAGES 75 OF THE RICH AND FAMOUS PHOTOGRAPHED BY HORST THE LEGENDARY GERMANBORN VOGUE PHOTOGRAPHER BARBARA PLUMB WHO WROTE THE TEXT THAT WRAPS AROUND THE PICTURES ACCOMPANIED THE PHOTOGRAPHER ON MANY OF HIS SHOOTS AS PHOTOGRAPHY THESE COLOR SHOTS OF WRETCHED EXCESS EXPOSE WITH PERFECT CLARITY WHAT HAPPENS WHEN PEOPLE WITH NO TASTE WHATEVER HAVE TOO MUCH MONEY TO SPEND AND ARE ONLY TOO HAPPY TO KEEP ON SPENDING IT THE RESULT IN MOST OF THESE ROOMS IS OPULENT CLUTTER GLORIA VANDERBILT'S NIGHTMARE BEDROOM WITH WALLS AND CEILING COVERED WITH DOZENS OF CLASHING PANELS OF PATCHWORK FRANCO ZEFFIRELLI'S HALFMOROCCAN RETREAT STUFFED WITH BOOTY FROM ACROSS THE ORIENT IN MANY OF THESE PLACES NOTHING MATCHES ANYTHING IN COLOR OR STYLE IT IS AS IF THE OWNERS HAD BOUGHT ANTIQUE SHOPS AND MOVED IN THERE ARE EXCEPTIONS SEVERAL FRENCH NOBLE HOMES AND THE BOLIVIAN TIN MAGNATE ANTENOR PATINO'S VILLA IN PORTUGAL GOYAS AND TROMPE L'OEIL BLUE ARCHITECTURAL TILES WHERE AT LEAST THE SUMPTUARY NOTES HARMONIZE IN THE SAME DECORATIVE STYLE BUT MOSTLY THESE INTERIORS ARE TRYING TOO HARD TO DAZZLE AND SUCCEED ONLY IN MAKING US WANT TO TURN OUR EYES ELSEWHERE HAVING SQUINTED BRIEFLY AT THE LIGHTNING BOLT FRENETICISM OF OVERSCALED HERRINGBONE CONCOCTED BY THE SHAMELESS DECORATOR CHARLES DEAR FOR ANNE FORD UZIELLI ONE TURNS WITH RELIEF TO THE SIMPLICITIES OF LIFE WAY OUT WEST HARPERCOLLINS 400 PAGES 35 THIS IS JANE AND MICHAEL STERN'S 18TH BOOK ABOUT AMERICAN POPULAR CULTURE AND IT MAY WELL BE THEIR MOST SERIOUS ATTEMPT TO DELINEATE LIFE AS IT IS LIVED OUTSIDE THE PURVIEW OF ANY CONDE NAST PUBLICATION AT FIRST GLANCE YOU MIGHT SUPPOSE THAT THIS IS AN EXERCISE IN FOURCOLOR CAMP WITH ITS MANY PAGES OF COW POKES AND RODEO CHAMPS COYLY POSED HORSES AND PERIOD GRAPHICS INCLUDING OLDTIME POSTCARDS FROM WESTERN TOURIST SIGHTS AND MUCH OTHER WESTERN KITSCH OF COURSE THERE IS SOMETHING INTRINSICALLY COMICAL ABOUT A CHAPTER ON HORNED TOADS ILLUSTRATED BY A POSTCARD SHOWING A HORNED TOAD SMOKING A CIGARETTE BUT THE STERNS EXPLAIN THAT THE CARD TEACHES A LESSON IN BIOLOGY JUST AS THEY EXPLAIN THE HISTORY BEHIND THE INVENTION OF THE MYTHICAL JACKALOPE JACK RABBIT HEAD ANTELOPE HORNS THE STERNS ALWAYS MANAGE TO GET TO THE BOTTOM OF WESTERN LORE AND LEGEND AND HOKUM FROM BRANDS TO SAGUAROS BUT THEY ARE TOO CLEVER TO LET YOU FORGET THE BROADLY HUMOROUS EXPLOITATION THAT REAL WESTERNERS HAVE MADE OF THEIR HISTORY AND THEIR WIDE OPEN SPACES 9312070073 931207 SUN PLANS REFINERY ADDITION PHILADELPHIA SUN CO SAID IT WILL BUILD A 65 MILLION ADDITION TO ITS MARCUS HOOK PA PETROLEUM REFINERY THE PROJECT INCLUDES CONSTRUCTION OF A 34MILLIONGALLONAYEAR CYCLOHEXANE PLANT A CHEMICAL USED TO MAKE NYLON BENZENE A FEEDSTOCK FOR THE NEW PLANT WILL COME FROM THE PREVIOUSLY ANNOUNCED EXPANSION OF BENZENE PRODUCTION AT MARCUS HOOK SUN SAID THE PROJECT IS EXPECTED TO START UP AT THE END OF 1994 FLUOR DANIEL INC WAS SELECTED AS THE PRINCIPAL CONTRACTOR SUN SAID 9312070072 931207 LETTERS TO THE EDITOR THE LINNAEAN SOCIETY MAY I POINT OUT THAT IN PETER EDGE'S ALTOGETHER DELIGHTFUL LETTER OF NOV 19 ABOUT THE LOONS HE AND HIS MOTHER SAW ON THE CENTRAL PARK RESERVOIR IN APRIL 1929 HE AND CONSEQUENTLY THE EDITOR MISSPELLED THE NAME OF THE LEARNED SOCIETY OF THE ORNITHOLOGY WORLD IT IS THE LINNAEAN SOCIETY NOT LINNEAN NAMED AFTER THE GREAT SWEDISH BOTANIST CARL LINNAEUS FOUNDER OF THE MODERN SYSTEM OF BINOMIAL NOMENCLATURE UNDER WHICH ALL PLANTS AND ANIMALS ARE NOW CLASSIFIED THE LINNAEAN SOCIETY OF NEW YORK STILL EXISTS AND MEETS EVERY OTHER TUESDAY AT THE AMERICAN MUSEUM OF NATURAL HISTORY 9312070071 931207 WHO'S NEWS DIY HOME WAREHOUSE INC DIY HOME WAREHOUSE INC CLEVELAND GREGORY K JONES JOHN A SHIELDS AND MARK A TIMMERMAN WERE NAMED DIRECTORS OF THIS OPERATOR OF WAREHOUSETYPE HOME IMPROVEMENT CENTERS RAISING THE NUMBER OF BOARD SEATS TO EIGHT MR JONES 34 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RELIABLE OFFICE SUPERSTORES CO MR SHIELDS 50 IS FORMER PRESIDENT CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER OF FIRST NATIONAL SUPERMARKETS INC MR TIMMERMAN 32 IS A PARTNER WITH THE INVESTMENT BANKING FIRM WILLIAM BLAIR & CO 9312070070 931207 BUSINESS BRIEF VALERO ENERGY CORP FOURTHPERIOD CHARGE SEEN IN WAKE OF OILPRICE PLUNGE VALERO ENERGY CORP SAID IT EXPECTS TO TAKE A FOURTHQUARTER CHARGE OF 20 MILLION TO 25 MILLION TO WRITE DOWN THE VALUE OF ITS REFINERY INVENTORIES IN THE WAKE OF THE RECENT PLUNGE IN PETROLEUM PRICES VALERO SAID THE DROP IN PRICES ALSO WILL SIGNIFICANTLY LOWER FOURTHQUARTER OPERATING PROFIT IN THE 1992 FOURTH QUARTER VALERO HAD NET INCOME OF 82 MILLION OR 18 CENTS A SHARE ON REVENUE OF 3037 MILLION THE SAN ANTONIO TEXAS OIL REFINER SAID THE AMOUNT OF THE CHARGE WILL DEPEND ON PREVAILING MARKET PRICES AND THE SIZE OF INVENTORIES AT YEAR'S END 9312070069 931207 BUSINESS BRIEF GRAND METROPOLITAN PLC BURGER KING PLEDGES FUNDS FOR MINORITY OPPORTUNITIES BURGER KING CORP THE FASTFOOD CHAIN SAID IT EARMARKED 100 MILLION TO SUPPORT MINORITY FRANCHISEES AND SUPPLIERS OVER THE NEXT FIVE YEARS UNDER THE PLAN THE GRAND METROPOLITAN PLC SUBSIDIARY SAID IT WILL PROVIDE 10 MILLION A YEAR IN DEVELOPMENT FUNDS FOR QUALIFIED MINORITY FRANCHISEES AND 10 MILLION A YEAR AS STARTUP CAPITAL IN THE FORM OF LOAN GUARANTEES OR DIRECT INVESTMENTS FOR MINORITY SUPPLIERS TO THE BURGER KING SYSTEM THE FINANCIAL COMMITMENT GENERATED FROM BURGER KING'S REGULAR OPERATIONS IS PART OF THE COMPANY'S EFFORT TO PROMOTE OPPORTUNITIES FOR MINORITIES AMONG OTHER THINGS THE COMPANY PLEDGED 500000 A YEAR FOR FIVE YEARS TO SUPPORT TARGETED MINORITY COMMUNITY AND CIVIC EVENTS CURRENTLY 720 OF THE CHAIN'S 6000 US RESTAURANTS ARE OPERATED BY MINORITIES IN ADDITION ABOUT 2 TO 3 OF THE 17 BILLION IN SUPPLIES BOUGHT BY BURGER KING'S PURCHASING AGENCY ARE BOUGHT FROM MINORITYOWNED SUPPLIERS A SPOKESMAN SAID IN FISCAL 1993 BURGER KING HAD SYSTEMWIDE SALES OF 67 BILLION 9312070068 931207 WHO'S NEWS MEDICAL INNOVATIONS INC MEDICAL INNOVATIONS INC HOUSTON DAVID C HORN WAS NAMED CHIEF FINANCIAL OFFICER AND TREASURER OF THIS NURSINGCARE COMPANY MR HORN 47 YEARS OLD SUCCEEDS DAVID Y STUTTS WHO RESIGNED MR HORN WAS AN AUDIT PARTNER IN THE HOUSTON OFFICE OF ARTHUR YOUNG NOW ERNST & YOUNG 9312070067 931207 BUSINESS BRIEF OSHMAN'S SPORTING GOODS INC QUARTERLY LOSSES CONTINUED ADDITIONAL STORES MAY CLOSE OSHMAN'S SPORTING GOODS INC POSTED ANOTHER QUARTERLY LOSS AND SAID IT IS CONSIDERING CLOSING AN ADDITIONAL 30 TO 35 STORES AS PART OF THE RETAILER'S INCREASING EMPHASIS ON SUPERSTORES THE HOUSTON COMPANY'S THIRDQUARTER LOSS TOTALED 33 MILLION OR 57 CENTS A SHARE ON SALES OF 666 MILLION A YEAR EARLIER THE COMPANY HAD A LOSS OF 24 MILLION OR 41 CENTS A SHARE ON 69 MILLION IN SALES THE COMPANY WHICH BLAMED THE LOSS ON CALIFORNIA'S WEAK ECONOMY AND AGGRESSIVE COMPETITION SAID THAT AS EXPECTED IT WILL HAVE A FOURTHQUARTER PROFIT BUT A LOSS FOR ALL OF 1993 OSHMAN'S STOCK MEANWHILE SURGED 16 YESTERDAY UP 1 TO 725 ON A FAVORABLE COLUMN IN USA TODAY THE RETAILER HAS CLOSED 33 SMALL STORES IN THE PAST 2 1/2 YEARS AND EXPECTS TO CLOSE SEVEN MORE IN THE NEXT SIX MONTHS IT IS CONSIDERING SHUTTING AN ADDITIONAL 30 TO 35 UNPROFITABLE STORES WITHIN TWO YEARS 9312070064 931207 MONDAY'S MARKETS INDUSTRIALS CLIMB 614 NEAR A HIGH BUT ADVANCE FIZZLES IN AFTERNOON TRADING BONDS CLOSE STRONG BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL AFTER HOVERING IN RECORD TERRITORY MOST OF THE DAY THE DOW JONES INDUSTRIAL AVERAGE FAILED TO REACH A NEW HIGH DESPITE A SURGING BOND MARKET THE DOLLAR FELL THE INDUSTRIAL AVERAGE ROSE 614 POINTS TO 371021 AND STANDARD & POOR'S 500STOCK INDEX GAINED 154 TO 46643 BUT THE NASDAQ COMPOSITE INDEX FELL 113 TO 77109 THE INDUSTRIAL AVERAGE CLIMBED AS MUCH AS 17 POINTS BEFORE FADING LATE IN THE AFTERNOON TO FINISH JUST 056 POINT BELOW ITS RECORD OF 371077 THE STOCK MARKET WAS UNDER PRESSURE ALL DAY FROM SAGGING SEMICONDUCTOR STOCKS THE SEMICONDUCTOR SELLOFF SPARKED BY A MERRILL LYNCH DOWNGRADE OF THE GROUP WEIGHED HEAVILY ON THE NASDAQ COMPOSITE INDEX AMONG SEMICONDUCTOR STOCKS INTEL PLUNGED 4 TO 59 1/2 AND APPLIED MATERIALS SANK 2 TO 35 3/4 DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS SAID TROUBLE FOR SEMICONDUCTOR COMPANIES COULD TRANSLATE INTO TROUBLE FOR THE ECONOMY IF THE SEMICONDUCTOR COMPANIES SLOW DOWN YOU'VE GOT TO WORRY ABOUT THE ECONOMY NEXT YEAR HE SAID THEY GO INTO SO MANY PRODUCTS NOT JUST COMPUTERS BUT CARS HOUSEHOLD APPLIANCES THEY'RE UBIQUITOUS ANALYSTS SAID THE BOND MARKET RALLIED IN RESPONSE TO A FURTHER DROP IN OIL PRICES DESPITE SIGNS OF A STRENGTHENING ECONOMY BOND TRADERS DON'T SEEM TO BE FEARING A HEATING UP OF INFLATION ANALYSTS SAID PEOPLE ARE STARTING TO BELIEVE OIL HAS DECIDEDLY BROKEN DOWN BELOW 15 SAID JOSEPH R LIRO CHIEF ECONOMIST AT SG WARBURG WHEN OIL DOES DROP LIKE THIS IT USUALLY KEEPS INFLATION IN CHECK FOR THE SUCCEEDING YEAR OR SO MAJOR READINGS ON INFLATION ARE DUE OUT THURSDAY AND FRIDAY WITH THE RELEASE OF PRODUCER AND CONSUMER PRICES FOR NOVEMBER BUT EVEN NUMBERS THAT ARE A LITTLE STRONGER THAN EXPECTED MAY NOT BE DETRIMENTAL TO THE BOND MARKET MR LIRO SAID HE ADDED THAT IT WAS REMARKABLE THAT BOND PRICES HAVE RALLIED IN SPITE OF THE RECENT STRONG ECONOMIC NUMBERS WE'RE GOING TO GET REASSURING INDICATIONS ON INFLATION THIS WEEK MR LIRO SAID BUT THE DATA HAS THE POTENTIAL TO BE STRONGER THAN THE BOND MARKET WOULD HAVE BEEN COMFORTABLE WITH A FEW WEEKS AGO WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 015 TO 10934 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 292 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1219 ISSUES ROSE AND 866 FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED ABOUT ONE POINT OR ABOUT 10 FOR EACH 1000 FACE AMOUNT TO YIELD 616 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17015 MARKS AND 10790 YEN COMPARED WITH 17200 MARKS AND 10845 YEN FRIDAY 9312070061 931207 INTERNATIONAL BRIEF BAYERISCHE VEREINSBANK AG MUNICHBASED BANK REPORTS RESULTS FOR 10MONTH PERIOD BAYERISCHE VEREINSBANK AG A LARGE REGIONAL GERMAN BANK REPORTED THAT GROUP OPERATING PROFIT CLIMBED 27 IN THE FIRST 10 MONTHS OF THE YEAR COMPARED WITH 10/12THS OF FULL 1992 RESULTS GERMAN BANKS COMMONLY COMPARE RESULTS TO A FRACTION OF THE PREVIOUS YEAR THE BANK DIDN'T COMPARE RESULTS WITH THE FIRST 10 MONTHS OF 1992 THE RISE IN 10MONTH FULL OPERATING PROFIT TO 922 MILLION MARKS 536 MILLION FROM 724 MILLION MARKS A YEAR EARLIER WAS LED BY A SURGE IN THE BANK'S TRADING FOR ITS OWN ACCOUNT WHICH ROSE TO 241 MILLION MARKS FROM 115 MILLION MARKS THE MUNICHBASED BANK SAID IT WOULD INCREASE ITS 1993 DIVIDEND TO 16 MARKS A SHARE FROM THE 13 MARKS PAID IN 1992 9312070060 931207 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE HOLIDAY HIRING MATCHES LAST YEAR'S PACE BUT APPLICANTS ARE MORE UPSCALE NEIMAN MARCUS NOTES MORE PEOPLE WITH PROFESSIONAL BACKGROUNDS AMONG HOLIDAY JOB SEEKERS THIS YEAR MANY APPLICANTS HOPE TO LAND FULLTIME WORK AT BOMBAY CO A SURPRISING NUMBER OF WHITECOLLAR MOONLIGHTERS SEEK HOLIDAY JOBS THESE ARE PEOPLE WHO EITHER AREN'T GOING TO GET A BONUS OR WHO HAVE BEEN LAID OFF SAYS BILL GLOODLATTE VICE PRESIDENT FOR THE HOMEFURNISHINGS RETAILER BARNES & NOBLE HIRES 3000 TEMPORARY CHRISTMAS WORKERS FOR ITS 950 STORES MANY OF THEM COLLEGE GRADUATES HAVING TROUBLE FINDING FULLTIME JOBS NEW YORK'S CHOICE COURIER SYSTEMS WHICH SEEKS 300 FOOT MESSENGERS AND DRIVERS TO DELIVER CHRISTMAS GIFTS ALSO REPORTS MORE COLLEGESTUDENT APPLICANTS PREVIOUSLY WE DIDN'T HAVE THE LUXURY OF THAT MARKET SAYS PRESIDENT ED KATZ NOW WE DO SOME APPLICANTS ARE CHOOSY THOUGH RON COLLINS DISTRICT PERSONNEL MANAGER FOR JC PENNEY HAS TROUBLE FILLING JOBS IN TONY NORTH DALLAS TEMPORARY WORK NEW HYBRID VERSIONS APPEAR IN SOME PLACES SETTLING A DISPUTE OVER UNION CLAIMS THAT IT HIRES TOO MANY OUTSIDE TEMPORARY WORKERS AMERICAN TELEPHONE & TELEGRAPH AGREES TO ESTABLISH AN ADMINISTRATIVE INTERN POSITION AMONG CLERICAL WORKERS IN NEW JERSEY PARTICIPANTS WILL BE FULLTIME UNION WORKERS WITH FULL PAY AND BENEFITS BUT THEY WILL MOVE FROM JOB TO JOB AS DEMAND REQUIRES THEIR JOBS WILL LAST JUST NINE MONTHS THOUGH RHINO FOODS A SPECIALTYDESSERT MAKER IN BURLINGTON VT AVERTS LAYOFFS BY ARRANGING TEMPORARY PLACEMENTS FOR SOME PRODUCTION PEOPLE AT MAILORDER FIRM GARDENER SUPPLY AND ICECREAM MAKER BEN & JERRY'S THE PROGRAM RETAINS EMPLOYEES AND BOOSTS MORALE RHINO BOASTS AND EXCHANGE WORKERS BRING BACK GOOD IDEAS ON HOW TO IMPROVE THE COMPANY'S OWN OPERATIONS OPEN SEASON UNIONORGANIZING IN HEALTH CARE BECOMES A FREEFORALL RAPID JOB GROWTH DRAWS ORGANIZERS TO HEALTHCARE FACILITIES AFSCME THE SERVICE WORKERS AND TEACHERS' UNIONS ALL HAVE NURSES' DIVISIONS BUT MANY OTHERS GET INTO THE ACT INCLUDING THE STEELWORKERS AUTO WORKERS MINE WORKERS ALUMINUM BRICK AND GLASS WORKERS TEAMSTERS FOOD AND COMMERCIAL WORKERS LABORERS RETAIL WHOLESALE AND DEPARTMENT STORE WORKERS AND OFFICE AND PROFESSIONAL EMPLOYEES IT'S WHERE A LOT OF THE JOBS ARE SAYS AFLCIO SPOKESWOMAN COLLEEN O'NEILL BEN LEAL SECRETARYTREASURER OF TEAMSTERS LOCAL 856 IN SAN FRANCISCO ANTICIPATES MORE ORGANIZING EFFORTS IN PRIVATESECTOR HOSPITALS WHERE HE EXPECTS DECLINES IN JOB SECURITY ANOTHER UNION OFFICIAL SAYS HOSPITAL WORKERS ARE EASY TO ORGANIZE BECAUSE THEY OPERATE IN WHAT IS NEARLY A CASTE SYSTEM HEALTHCARE REFORM SPURS INTEREST IN UNIONIZATION AMONG DOCTORS SAYS THE 15000MEMBER CALIFORNIABASED UNION OF AMERICAN PHYSICIANS AND DENTISTS LIFTING RESTRAINTS ON REGIONAL TELEPHONE COMPANIES WOULD GENERATE HIGHPAYING BLUECOLLAR JOBS SAYS THE LIBERALLY INCLINED ECONOMIC POLICY INSTITUTE OVERALL DEREGULATION WOULD MEAN 36 MILLION NEW JOBS OVER 10 YEARS ACCORDING TO WEFA GROUP CONGRESS NEXT YEAR WILL DEBATE LETTING THE BABY BELLS PROVIDE LONGDISTANCE PHONE MANUFACTURING AND ELECTRONICINFORMATION SERVICES WHITE MEN'S CLUB ONLY 62 OF THE FEDERAL RESERVE'S HIGHESTPAID EMPLOYEES ARE MINORITIES AND JUST 176 ARE WOMEN REPORTS HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALES D TEXAS FED CHAIRMAN ALAN GREENSPAN SAYS THE CENTRAL BANK IS TRYING TO IMPROVE RECRUITMENT AND TRAINING OF WOMEN AND MINORITIES ET TU THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION ORDERS THE LABOR DEPARTMENT TO INVESTIGATE A RACEDISCRIMINATION COMPLAINT BY BLACK EMPLOYEES AT THE DEPARTMENT'S EMPLOYMENT AND TRAINING ADMINISTRATION THE CHARGES WERE FIRST FILED IN 1984 BUT THEY HIT PROCEDURAL ROADBLOCKS AND THEN WERE SPURNED BY THE BUSH ADMINISTRATION TEACHING JOBS HELP PACE UNEXPECTED GROWTH IN STATEGOVERNMENT EMPLOYMENT THE NUMBER OF JOBS IN PUBLIC COLLEGES AND UNIVERSITIES INCREASED 42 BETWEEN 1990 AND 1993 EVEN AS OTHER STATE EMPLOYMENT DROPPED 02 AND PRIVATE NONFARM JOBS DECLINED 13 REPORTS THE CENTER FOR THE STUDY OF THE STATES IN ALBANY NY EDUCATION STAFFING GREW AS TUITION INCREASES NONPERSONNEL COST CUTS AND GREATER USE OF PARTTIME FACULTY OFFSET CUTS IN STATE FUNDS IMPRESSIVE GAINS IN ENROLLMENT HELPED PROTECT FACULTY JOBS ALTHOUGH RELATIVELY FEWER STUDENTS ARE GRADUATING FROM HIGH SCHOOL COLLEGES ARE ATTRACTING A LARGER SHARE OF THOSE WHO DO AND THE NUMBER OF ADULTS RETURNING TO COLLEGE IS UP SHARPLY TOO OVERALL PUBLIC COLLEGE ENROLLMENT INCREASED TO 329 PER 1000 POPULATION FROM 311 PER 1000 IN 1977 REPORTS KENT HALSTEAD DIRECTOR OF RESEARCH ASSOCIATES IN WASHINGTON THE RISING DEMAND FOR PRISON GUARDS THEIR JOBS SURGED 108 IN THE 1980S COMPARED WITH A 135 RISE IN TOTAL EMPLOYMENT ALSO HELPED BOLSTER STATE JOB ROLLS THE CHECKOFF BLUE CROSS AND BLUE SHIELD OF MASSACHUSETTS AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION OFFER INSURANCE COVERAGE FOR EMPLOYEES' SAMESEX DOMESTIC PARTNERS RELOCATING EMPLOYEES SHOULD INCUR HOUSEHUNTING OR TEMPORARYLIVING EXPENSES BEFORE YEAREND BECAUSE THEY WON'T BE DEDUCTIBLE NEXT YEAR ADVISES PRUDENTIAL RELOCATION MANAGEMENT 9312070059 931207 REVIEW & OUTLOOK EDITORIAL A VOTE'S IMPORTANT MESSAGE EVERYONE IN THE WORLD KNOWS IT WHEN MOBS OF HINDUS AND MUSLIMS IN INDIA GO ON MURDEROUS RAMPAGES IT'S BIG NEWS BUT IN A WORLD IN WHICH NATIONS ARE BECOMING MORE INTERTWINED AT LEAST ECONOMICALLY IT'S IMPORTANT TO HAVE A MECHANISM THAT HELPS US GAUGE THE RELEVANCE OF THESE STRIKING EVENTS IN UNFAMILIAR PLACES ONE USEFUL MECHANISM IS A PUBLIC VOTE LAST WEEK'S VOTING IN INDIA SUGGESTS ITS PUBLIC HAS A LOT MORE COMMON SENSE THAN THE IMAGES OF RAMPAGE SUGGEST RECALL THAT WHEN MOBS TORE APART THE BABRI MOSQUE IN AYODHYA LAST YEAR EGGED ON BY THREE YEARS OF RHETORIC FROM THE BHARATIYA JANATA PARTY IT LOOKED LIKE INDIA WAS GOING TO IMPLODE THOUSANDS WERE KILLED IN THE ENSUING RIOTS WHICH IN MARCH EVEN SPILLED OVER TO COSMOPOLITAN BOMBAY INDIA SUDDENLY LOOKED LIKE A VERY FRIGHTENING PLACE PRIME MINISTER RAO SUSPENDED THE FOUR STATE GOVERNMENTS IN WHICH THE BJP HELD POWER LAST WEEK'S BALLOTS WERE TO RESTORE ELECTED GOVERNMENTS THERE IF THE BJP HAD ROARED BACK TO POWER THE FRACTURING OF A UNITARY INDIA COULD NOT BE DISCOUNTED IN THE EVENT INDIAN VOTERS STARED AT THE PROSPECT OF FURTHER EMPOWERING A SECTARIAN POLITICAL PARTY THAT HAD FOMENTED THE WORST HINDUMUSLIM VIOLENCE SINCE INDEPENDENCE AND BLINKED THE BJP WON POWER IN JUST ONE OF THE FOUR STATES IT HAD GOVERNED BEFORE WHILE THE CONGRESS PARTY WHICH RULES NATIONALLY PICKED UP TWO AND A SOCIALISTLED COALITION ONE THE BJP TOOK A MINOR SPANKING AS LOWERCASTE HINDUS DECIDED THAT THE MYSTICAL PRETENSIONS OF THE HINDU ELITES WHO LEAD THE BJP DIDN'T MATTER NEARLY AS MUCH AS THE PRETTY ROTTEN JOB THE PARTY HAD DONE GOVERNING INDIA IS PROUD OF ITS MIDDLE CLASS WHICH IS PERHAPS 25 OF THE POPULATION BUT THAT LEAVES 75 AMONG THE POOR SOME OF THEM DESPERATELY SO TO MANY OF THESE ECONOMIC OPPORTUNITY AND STABILITY SEEM MORE IMPORTANT THAN VIOLENT ASSERTIONS OF HINDU PRIDE FOR THE BJP THE LESSON MUST BE THAT IT HAS GONE AS FAR AS IT CAN PLAYING THE COMMUNAL CARD IT NEEDS TO SHOW IT CAN GOVERN SKILLFULLY AND THAT IT HAS MORE IDEAS TO OFFER THAN RIPPING DOWN MOSQUES THE BJP MADE A POINT OF ECONOMIC LIBERALISM IN THE PAST THIS WOULD BE A CONSTRUCTIVE BASE ON WHICH TO BUILD BOTH MAJOR PARTIES ALSO SAID THE ELECTIONS WHICH ACCOUNTED FOR ABOUT A THIRD OF THE POPULATION WERE A REFERENDUM ON PRIME MINISTER RAO MR RAO HAS MADE HIS NAME BY OPENING UP THE INDIAN ECONOMY MUCH OF WHAT HE AND FINANCE MINISTER MANMOHAN SINGH HAVE DONE SO FAR SUCH AS REMOVING BARRIERS TO FOREIGN INVESTMENT AND CUTTING TARIFFS IS MAINLY COMMON SENSE BUT THIS WAS UNCOMMON IN THE CONGRESS PARTY FOR GENERATIONS THE PARTY'S GOOD ELECTORAL PERFORMANCE THEN WAS A NOD FROM THE PUBLIC ON ECONOMIC LIBERALIZATION INDIAN VOTERS HAVE SHOWN THAT THEY ARE MORE INTERESTED IN GETTING ON WITH THINGS THAN THEY ARE IN SECTARIAN DISPUTES OR POLITICAL CARPING THIS IS GOOD TO KNOW IN MANY COUNTRIES THE NEWS IS MORE OFTEN DOMINATED BY POLITICIANS' OPINIONS OR SENSATIONAL EVENTS ONE OF THE GREAT BENEFITS OF PERIODIC ELECTIONS IS THAT THEY OFTEN SEND THE CLEAREST SIGNAL OF WHAT A COUNTRY'S PEOPLE ACTUALLY WANT 9312070058 931207 BUSINESS BRIEFS BUTLER MFG CO COMPLETED THE SALE OF ITS WALKER ELECTRICAL PRODUCTS DIVISION TO THE WIREMOLD CO WEST HARTFORD CONN FOR ABOUT 35 MILLION LCI INTERNATIONAL INC REACHED A DEFINITIVE AGREEMENT TO ACQUIRE TELEDIAL AMERICA OF NORTH CAROLINA INC CHARLOTTE NC FOR 55 MILLION VINTAGE PETROLEUM INC COMPLETED A SERIES OF ACQUISITIONS OF OIL AND GAS PROPERTIES FOR A TOTAL OF 137 MILLION THE PROPERTIES ARE LOCATED PRIMARILY IN SAN JOAQUIN COUNTY CALIF AND GALVESTON COUNTY TEXAS PARKER HANNIFIN CORP ACQUIRED THE 61 OF LDI PNEUTRONICS CORP HOLLIS NH IT DIDN'T ALREADY OWN TERMS WEREN'T DISCLOSED GENERAL ELECTRIC CO'S INDUSTRIAL AND POWER SYSTEMS UNIT RECEIVED A 26 MILLION ORDER TO SUPPLY POWERGENERATION EQUIPMENT FOR A COGENERATION POWER FACILITY IN CORINTH NY FOR INDECK ENERGY SERVICES INC 9312070057 931207 BUSINESS BRIEF TRIGEN ENERGY CORP UNITED THERMAL ACQUISITION FOR 648 MILLION IS PLANNED TRIGEN ENERGY CORP A WHITE PLAINS NY OWNER AND OPERATOR OF HEATING AND COOLING SYSTEMS SAID IT WILL ACQUIRE UNITED THERMAL CORP FOR ABOUT 648 MILLION BY DEC 20 TRIGEN HAS ACQUIRED MORE THAN 90 OF UNITED THERMAL'S OUTSTANDING STOCK FOR 450 A SHARE AND PLANS TO ACQUIRE THE REMAINDER FOR ABOUT THE SAME PRICE THROUGH A MERGER UNITED THERMAL OF NEW YORK CITY PROVIDES THERMAL ENERGY TO MORE THAN 1200 CUSTOMERS IN FOUR CITIES AND HAS ABOUT 112 MILLION IN ANNUAL SALES TRIGEN A PRIVATE COMPANY HAD ABOUT 76 MILLION IN SALES FOR THE FISCAL YEAR ENDED SEPT 30 9312070056 931207 PEPPERAND SALT TO DON'T GET MAD GET THIEVIN' BETWEEN TWO TRAITS THAT RUN DEEP AND THE OTHER IS THAT I'M CHEAP HARDPAPER COPIES ACCESSORIES AFTER THE FAX 9312070055 931207 WALL STREET SEEKS TO RESCUE ITS REPUTATION BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL BOCA RATON FLA SECURITIES BROKERAGE FIRMS ARE TAKING MEASURES DESIGNED TO CLEAN UP THE INDUSTRY'S IMAGE IF NOT ITS ACT WALL STREET IS HAVING THE MOST SUCCESSFUL YEAR IN ITS HISTORY BUT THAT VERY SUCCESS BROKERS AND THEIR BOSSES SAY IS MAKING THE DEEPPOCKETS BUSINESS A MAGNET FOR LAWSUITS AND A TARGET FOR UNPRECEDENTED LEVELS OF CONSUMER CONTEMPT SOME PEOPLE BELIEVE 10 OF THIS INDUSTRY OR MORE ARE MASS MURDERERS RAILS JOSEPH PLUMERI PRESIDENT OF SMITH BARNEY SHEARSON INC THE BROKERAGE UNIT OF PRIMERICA CORP MORE SPECIFICALLY SAYS MARK LACKRITZ PRESIDENT OF THE SECURITIES INDUSTRY ASSOCIATION THE PUBLIC ACCORDS OUR INDUSTRY WITH LESS RESPECT THAN LAWYERS HOW TO POLISH THE INDUSTRY'S IMAGE AND CONTROL LITIGATION COSTS ITS FASTESTGROWING EXPENSE AFTER HEALTH CARE WAS THE CHIEF TOPIC AT THE ANNUAL CONFERENCE OF THE SIA THE FIRMS' TRADE GROUP THE CONFERENCE ATTENDED BY 750 TOP INDUSTRY EXECUTIVES ENDED SATURDAY AT THE LAVISH BOCA RATON HOTEL & RESORT IN FLORIDA THE RESULTS OF THE RHETORIC THE SIA AND ITS MEMBER FIRMS WILL BE OVERHAULING THE BUSINESS' U4 AND U5 FORMS ESSENTIALLY THE PERMANENT RECORDS OF COMPLAINTS AND TERMINATION KEPT ON EVERY BROKER TO REQUIRE FIRMS TO PROVIDE MORE INFORMATION SUCH AS SPECIFICS ON WHY A BROKER LEFT SECURITIES EXECUTIVES WILL MEET WITH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS NEXT WEEK TO REWRITE THE INDUSTRY'S PAPERWORK AND BROKERAGE FIRMS WILL ALSO BE PUSHING REGULATORS AND CONGRESS TO LIMIT THE FIRMS' LEGAL LIABILITY FOR LIBEL IF THEY DISMISS A BROKER FOR CAUSE AND THEN DISCLOSE WHY ON THE U5 FORMS THE INDUSTRY HEARS THE CLOCK TICKING MUSHROOMING PROBLEMS OF PRUDENTIAL INSURANCE CO'S PRUDENTIAL SECURITIES UNIT WHICH SOLD THOUSANDS OF LIMITED PARTNERSHIPS IN THE 1980S THAT SINCE WENT SOUR HAVE DRAWN THE ATTENTION OF REGULATORS IF THE INDUSTRY DOESN'T POLICE ITSELF EXPELLING BAD BROKERS AND REINING IN THE HUGE TURNOVER RATES THAT DIMINISH SERVICE AND TARNISH THE INDUSTRY'S IMAGE REGULATORS WILL THIS CONCERN FOR THE INDUSTRY'S REPUTATION COMES AS BROKERAGE FIRMS ARE POSTING THE MOST PROFITABLE YEAR IN HISTORY THE PRETAX PROFITS OF BROKERAGE FIRMS TRADED ON THE BIG BOARD A PROXY FOR THE BROADER INDUSTRY WILL TOP 88 BILLION BY YEAR END THE SIA ESTIMATES A 42 LEAP OVER THE PREVIOUS RECORD IN 1992 IT'S VERY DANGEROUS TO BE PERCEIVED AS VERY SUCCESSFUL NOTES HARVEY PITT THE PROMINENT SECURITIES ATTORNEY WHO LECTURED ON THE PROLIFERATION OF LITIGATION PERHAPS THE BESTATTENDED PANEL DISCUSSION AT THE CONFERENCE KIDDER PEABODY & CO GENERAL COUNSEL JOHN LIFTIN BEMOANED THE INDUSTRY OF SECURITIESRELATED CLASSACTION LITIGATION THAT HAS SPRUNG UP AND URGED INVESTMENT BANKERS TO START ROUTINELY ADDING COUNSEL TO YOUR DEAL TEAMS KIDDER PEABODY IS A UNIT OF GENERAL ELECTRIC CO WHY IS IT SO HARD TO GET RID OF ROGUE BROKERS IT ISN'T IN THE SENSE THAT THE WORST ARE OFTEN DETECTED AND FIRED RELATIVELY SWIFTLY THE TROUBLE IS SAYS JOHN L STEFFENS HEAD OF MERRILL LYNCH & CO'S HUGE RETAIL SALES FORCE THEY OFTEN ARE SIMPLY HIRED ELSEWHERE UNDER THE CURRENT RULES UNLESS THE DEPARTING BROKER WAS FACING A FORMAL INTERNAL REVIEW FOR FRAUD OR VIOLATION OF INDUSTRY PRACTICES THE BROKER'S RECORD IS CLEAN AND IT DOESN'T RAISE ANY EYEBROWS IN THE INDUSTRY TO JUMP SHIP THERE'S A MOVING VAN MENTALITY ON WALL STREET SAYS MR PLUMERI MORE THAN 30 OF BROKERS HAVE SWITCHED FIRMS MORE THAN THREE TIMES THAT'S NUTS HE SAYS IN SOME CASES THE BROKERS ARE JUST TRADING UP TEMPTED BY HUGE UPFRONT BONUSES THAT CAN TOTAL 50 OF THEIR ANNUAL COMMISSIONS BUT OTHER BROKERS ARE ON THE MOVE BECAUSE THEY HAVE BEEN FIRED FOR CAUSE WHILE BROKERAGE FIRMS LIST THE REASON FOR TERMINATION ON THE U5 WHICH IS REGISTERED WITH THE STOCK EXCHANGES AND AVAILABLE TO OTHER FIRMS ANY CRITICISM OF THE EMPLOYEE CAN OPEN THE FIRM TO COSTLY CHARGES OF COMPLICITY OR DEFAMATION OF CHARACTER IN 1990 FOR EXAMPLE A DEAN WITTER BROKER SUCCESSFULLY SUED THE FIRM AND WON A 234 MILLION DEFAMATION AWARD HE CLAIMED THE FIRM NOW KNOWN AS DEAN WITTER DISCOVER & CO BUT THEN A SEARS ROEBUCK & CO UNIT HAD LIBELED AND SLANDERED HIM IN FILINGS WITH SECURITIES EXCHANGES AND IN A STATEMENT TO A POTENTIAL EMPLOYER BUT THE ENTHUSIASM FOR KICKING OUT RASCALLY BROKERS WENT ONLY SO FAR AT THE CONVENTION REP JOHN DINGELL POWERFUL HEAD OF THE HOUSE'S COMMITTEE ON ENERGY AND COMMERCE HAS CALLED FOR A THREE STRIKES AND YOU'RE OUT TREATMENT OF ROGUE BROKERS WITH MULTIPLE CUSTOMER COMPLAINTS TOP INDUSTRY OFFICIALS AGREED IN PRINCIPLE WHILE THEY WERE IN FLORIDA BUT THEY ADVOCATED GIVING BROKERS ADDITIONAL TIMES AT BAT AND FORMING A COMMITTEE TO STUDY THE ISSUE 9312070054 931207 LETTERS TO THE EDITOR ECOPLANS THAT AVOID TRAIN WRECKS IN YOUR NOV 8 EDITORIAL GO FISH YOU STATED THAT THE NUMBER OF BIOLOGISTS EMPLOYED BY THE CALIFORNIA DEPARTMENT OF FISH AND GAME HAS GROWN IN RECENT YEARS TWO POINTS MUST BE MADE TO PLACE THIS RISE IN PROPER CONTEXT FIRST A PORTION OF THE INCREASE WAS DUE TO THE CREATION OF AN IMPORTANT OFFICE WITHIN THE DEPARTMENT DESIGNED TO PROTECT CALIFORNIA'S MAJESTIC COASTLINE MARINE WILDLIFE AND VALUABLE HARBORS FROM COSTLY AND DISASTROUS OIL SPILLS SECOND ADDITIONAL BIOLOGISTS ARE PLAYING A MAJOR ROLE IN GOV PETE WILSON'S NATURAL COMMUNITIES CONSERVATION PLANNING PROGRAM AN UNPRECEDENTED EFFORT TO CONSERVE ENTIRE ECOSYSTEMS WHILE ALLOWING COMPATIBLE ECONOMIC DEVELOPMENT TO PROCEED THIS UNIQUE PROGRAM IS DESIGNED TO AVOID THE ECONOMIC AND ENVIRONMENTAL GRIDLOCK THAT OFTEN RESULTS FROM CONVENTIONAL APPLICATION OF THE ENDANGERED SPECIES ACT RECOGNIZING THE PIONEERING NATURE OF GOV WILSON'S PROGRAM SECRETARY OF THE INTERIOR BRUCE BABBITT ENDORSED THE PROGRAM AND ACTUALLY DELEGATED CERTAIN AUTHORITY UNDER THE ENDANGERED SPECIES ACT TO THE STATE SAYING THIS MAY BECOME AN EXAMPLE OF WHAT MUST BE DONE ACROSS THE COUNTRY IF WE ARE TO AVOID THE ENVIRONMENTAL AND ECONOMIC TRAIN WRECKS WE'VE SEEN IN THE LAST DECADE FINALLY WHILE GOV WILSON IS LEADING THE NATION IN THE INNOVATIVE IMPLEMENTATION OF THE ENDANGERED SPECIES ACT HE ALSO BELIEVES THAT REFORM IS NECESSARY IN THE FEDERAL LAW IN ORDER TO MAKE IT MORE CONSISTENT WITH THE TYPE OF ANTICIPATORY ECOSYSTEM PLANNING HE IS PURSUING IN CALIFORNIA ONLY THEN CAN WE PROVIDE EFFECTIVE PROTECTION FOR BIOLOGICAL DIVERSITY WITHOUT UNNECESSARILY FRUSTRATING ECONOMIC PROGRESS YOU ALLEGE THAT THE APPROPRIATED INCREASES FOR THE US FISH AND WILDLIFE SERVICE BETWEEN 198892 ARE IN ESSENCE DUE TO THE ENDANGERED SPECIES ACT ESA IN FISCAL 1988 ESA FUNDING REPRESENTED A MERE 5 OF THE SERVICE'S RESOURCE MANAGEMENT BUDGET AND 26 OF THE ITS TOTAL BUDGET IN FISCAL '92 ESA FUNDING REPRESENTED 7 OF THE RESOURCE MANAGEMENT AND 3 OF THE TOTAL BUDGET IN COMPARISON THE SERVICE'S LAND ACQUISITION BUDGET REPRESENTED 19 IN FISCAL '92 CONSTRUCTION 22 AND THE NATIONAL WILDLIFE REFUGE SYSTEM 40 OF THE RESOURCE MANAGEMENT BUDGET YOUR ASSERTION THAT THIS IS ENVIRONMENTALISM'S MOST RAPIDLY ADVANCING FRONT SHOULD SCARE NO ONE AWARE OF THE SMALL PERCENTAGE OF SERVICE FUNDING THAT THE ESA PROGRAM REPRESENTS I ALSO DISAGREE WITH THE COMPARISON BETWEEN ENVIRONMENTAL PROTECTION AGENCY REGULATORS AND THE FISH AND WILDLIFE SERVICE THE SERVICE IS THE PRIMARY FEDERAL AGENCY CHARGED WITH THE CONSERVATION NOT REGULATION OF FISH AND WILDLIFE RESOURCES ITS TRUST RESOURCES ADD MILLIONS OF DOLLARS TO LOCAL AND STATE ECONOMIES THROUGH BOTH CONSUMPTIVE AND NONCONSUMPTIVE PURSUITS THE REGULATIONS OR EXCISES ON THESE PURSUITS AND OTHERS WERE NOT CREATED TO IMPEDE A CITIZEN'S FORAYS INTO NATURE BUT RATHER TO ENSURE THAT OUR CHILDREN AND OUR CHILDRENS' CHILDREN WILL HAVE ACCESS TO RELATIVELY PRISTINE NATURAL AREAS 9312070053 931207 REVIEW & OUTLOOK EDITORIAL ASIDES FREE SPEECH REFRESHER THE CAMPUS SPEECH BATTLEFRONTS ARE STILL FEELING THE SHELL SHOCKS OF A CASE THIS FALL AT THE UNIVERSITY OF CALIFORNIARIVERSIDE A RAMBUNCTIOUS FRATERNITY THERE WAS IN THE PROCESS OF BEING BOOTED OVER A TSHIRT ADVERTISING BOTH A SOUTH OF THE BORDER FIESTA AND A JAMAICAN THEME PARTY IT SPORTED A MONTAGE OF IMAGES THAT INCLUDED BOTH DRINKING AND MEXICAN SCENES THE ACTUAL LOGO IS DEPICTED NEARBY SEE ACCOMPANYING ILLUSTRATION WSJ DEC 7 1993 THOUGH THE ILLUSTRATION WAS TAME BY THE STANDARD OF SOUVENIRS SOLD IN ONE OF THE ACTUAL MEXICAN CANTINAS IT FEATURED A CAMPUS CHICANO GROUP TOOK OFFENSE AND RAISED A RUCKUS JUST AS CENSORIOUS ADMINISTRATORS WERE LOWERING THE BOOM HOWEVER A SHOESTRING LEGAL OUTFIT CALLED THE INDIVIDUAL RIGHTS FOUNDATION INTERCEDED ON BEHALF OF THE FRAT AS IT HAS DONE ELSEWHERE THE IRF PREVAILED ON UNIVERSITY OFFICIALS TO HONOR THE FIRST AMENDMENT BUT THIS TIME THE SETTLEMENT HAD A NEW TWIST TWO SCHOOL ADMINISTRATORS HAVE TO ATTEND SEMINARS ON THE MEANING OF FREE SPEECH THIS LOOKS TO BE A LANDMARK VICTORY RECOGNIZING THE LEGAL PROTECTIONS THAT RESTRAIN THE UNIVERSITIES' INSTINCT TO POLICE THOUGHT 9312070052 931207 LETTERS TO THE EDITOR ONE FORM OF CHROMIUM IS NUTRITION SUPPLEMENT AN ARTICLE NOV 2 DISCUSSES RESEARCH LINKING CHROMIUM EXPOSURE TO LUNG CANCER RISK AND DNA DAMAGE IT IS IMPORTANT TO NOTE THAT CHROMIUM OCCURS IN TWO CHIEF FORMS KNOWN AS HEXAVALENT AND TRIVALENT IT HAS LONG BEEN KNOWN THAT EXPOSURE TO AIRBORNE SOURCES OF HEXAVALENT CHROMIUM INCREASES LUNG CANCER RISK AND CAN PRODUCE GENETIC DAMAGE HEXAVALENT CHROMIUM USUALLY OF INDUSTRIAL ORIGIN IS VERY UNSTABLE AND REACTS IN DESTRUCTIVE WAYS WITH LIVING CELLS IN CONTRAST THE TRIVALENT FORM OF CHROMIUM IS QUITE STABLE AND IN FACT IS AN ESSENTIAL NUTRIENT TOXICOLOGY TESTS SHOW THAT TRIVALENT CHROMIUM ADMINISTERED ORALLY IS REMARKABLY SAFE NO STUDIES HAVE LINKED EXPOSURE TO TRIVALENT CHROMIUM WITH INCREASED CANCER RISK OR TO ANY OTHER PATHOLOGY TRIVALENT CHROMIUM PLAYS A PHYSIOLOGICALLY ESSENTIAL ROLE IN SUPPORTING THE BODY'S SENSITIVITY TO THE IMPORTANT HORMONE INSULIN THERE ARE PROMISING THOUGH NOT YET CONCLUSIVE INDICATIONS THAT GOOD CHROMIUM NUTRITION MAY REDUCE RISK FOR CARDIOVASCULAR DISEASE DIABETES AND OTHER DISORDERS MILLIONS OF AMERICANS ARE NOW INCLUDING CHROMIUM IN THEIR DAILY SUPPLEMENTATION REGIMENS 9312070051 931207 BUSINESS BRIEF ENVIROTEST SYSTEMS CORP CONNECTICUT GRANTS RIGHT TO NEGOTIATE AUTOTEST PACT ENVIROTEST SYSTEMS CORP SAID IT WON THE RIGHT TO NEGOTIATE A CONTRACT WITH CONNECTICUT TO BE THE EXCLUSIVE AUTOEMISSIONS TESTING SERVICE FOR THE STATE THE DEAL WILL BRING THE TUCSON ARIZ COMPANY REVENUE OF 20 MILLION A YEAR FOR 7 1/2 YEARS OR 150 MILLION TOTAL THE CONNECTICUT CONTRACT IS SET TO BEGIN JAN 1 1995 ONCE A DEAL IS FINALIZED ENVIROTEST WILL ACQUIRE PROPERTY FOR AS WELL AS BUILD EQUIP AND STAFF 12 NEW AUTOEMISSIONS TESTING CENTERS IN CONNECTICUT IN ADDITION TO THE 19 IT ALREADY OPERATES IN THE STATE IN NASDAQ STOCK MARKET TRADING YESTERDAY ENVIROTEST SHARES ROSE 125 CENTS OR 05 TO CLOSE AT 2275 A SHARE THE COMPANY WENT PUBLIC LAST APRIL AT 16 A SHARE OVER THE PAST TWO MONTHS ENVIROTEST HAS WON A 400 MILLION SEVENYEAR CONTRACT FOR EMISSIONS TESTING IN PENNSYLVANIA AND A 475 MILLION SEVENYEAR PACT WITH THE DOWNSTATE NEW YORK REGION THAT INCLUDES NEW YORK CITY 9312070050 931207 PEP BOYS STOCK BUYBACK PHILADELPHIA PEP BOYSMANNY MOE & JACK AN AUTO PARTS AND SERVICE COMPANY SAID DIRECTORS APPROVED THE REPURCHASE OF AS MUCH AS 75 MILLION OF THE COMPANY'S COMMON SHARES THE COMPANY HAS ABOUT 61 MILLION SHARES OUTSTANDING AT CURRENT PRICES THAT SUM WOULD REPURCHASE ABOUT 28 MILLION SHARES THE SHARES WOULD BE USED TO FINANCE EMPLOYEE COMPENSATION AND BENEFIT PLANS OVER A 15YEAR PERIOD 9312070049 931207 BUSINESS BRIEF ITT CORP UNIT OF BALLY MANUFACTURING BUYS STAKE IN BALLY'S GRAND ITT CORP SAID IT SOLD ITS 12 INTEREST IN BALLY'S GRAND INC TO BALLY CASINO HOLDINGS INC A UNIT OF BALLY MANUFACTURING CORP FOR ABOUT 175 MILLION NEW YORKBASED ITT ACQUIRED ITS STAKE IN BALLY'S GRAND FOR 8 MILLION BY PURCHASING THE CASINO'S DEBT WHILE IT WAS OPERATING UNDER CHAPTER 11 PROTECTION OF THE FEDERAL BANKRUPTCY CODE IN LATE 1992 IN JULY ITT OFFERED TO ACQUIRE BALLY MANUFACTURING'S STAKE IN BALLY'S GRAND OR ALTERNATIVELY SELL ITS OWN STAKE AT THAT TIME ITT ALSO SAID IT HAD AGREED TO PAY 160 MILLION TO ACQUIRE THE DESERT INN HOTEL AND CASINO IN LAS VEGAS ITT WHICH HAS INTERESTS IN DEFENSE AUTOMOTIVE FINANCIALSERVICES INSURANCE TIMBER AND HOTEL INDUSTRIES SAID IT EXPECTS TO REPORT AN UNSPECIFIED GAIN ON THE SALE OF ITS STAKE IN NEVADABASED BALLY'S GRAND 9312070047 931207 WHERE SHAREHOLDER ACTIVISM IS PARAMOUNT BY JOHN POUND THIS WEEK TWO SIGNIFICANT TAKEOVER CONTESTS WILL MOVE INEXORABLY TOWARD CONCLUSION ONE THAT INVOLVING PARAMOUNT QVC AND VIACOM HAS BEEN WIDELY FOLLOWED THE OTHER INVOLVING MEDICAL CARE AMERICA AND SURGICAL CARE AFFILIATES HAS RECEIVED LESS ATTENTION THAT IS IRONIC BECAUSE THE SAGA THAT IS UNFOLDING AT MEDICAL CARE CONTAINS EQUALLY IF NOT MORE IMPORTANT SIGNALS ABOUT THE FUTURE DIRECTION OF CORPORATE CONTROL CONTESTS IN THE AMERICAN FINANCIAL MARKETPLACE IN THE PARAMOUNT DEAL A CLASSIC 1980SSTYLE BIDDING WAR HAS LED TO A COSTLY BATTLE THAT IS BEING PLAYED OUT IN AND WILL BE RESOLVED BY THE DELAWARE COURT AT MEDICAL CARE A SPURNED BID HAS INSTEAD LED TO A UNIQUE EFFORT BY SHAREHOLDERS TO INDUCE THE BOARD TO CHANGE ITS POSITION AND TO DO WHAT SHAREHOLDERS WANT THE MEDICAL CARE PROCESS IS REFLECTIVE OF THE PROGRESS THAT HAS BEEN MADE IN THE REALM OF INSTITUTIONAL INVESTOR ACTIVISM AND IS SALUTARY FROM A LEGAL ECONOMIC AND POLICY VIEWPOINT THE PARAMOUNTQVCVIACOM TAKEOVER BATTLE REPRESENTS THE LARGEST HOSTILE CONTROL CONTEST IN YEARS AND THE FIRST MAJOR TEST OF DELAWARE TAKEOVER LAW SINCE TIMEWARNER A MERGER AGREEMENT WITH VIACOM WAS ENTERED INTO BY THE PARAMOUNT BOARD INCLUDING EXTENSIVE LOCKUP PROVISIONS AN ALTERNATIVE BID FOR PARAMOUNT THEN EMERGED WHICH THE BOARD RESISTED THE BATTLE THEN MOVED TO THE DELAWARE COURT LAST WEEK THE DELAWARE CHANCERY COURT HANDED THE PARAMOUNT BOARD A STINGING INDICTMENT FINDING THAT THE ACTIONS OF THE BOARD WERE INCONSISTENT WITH THE INTERESTS OF SHAREHOLDERS AND SPECIFICALLY THAT THE BOARD HAD DONE AN INADEQUATE JOB OF INVESTIGATING THE QVC BID THE DECISION HAS BEEN SEEN AS AN IMPORTANT VICTORY FOR SHAREHOLDER RIGHTS CAREFUL CONSIDERATION SUGGESTS ONE MISSING PIECE IN THE PARAMOUNT EQUATION TO DATE THAT IS DIRECT INPUT AND A DIRECT VOICE FOR PARAMOUNT'S SHAREHOLDERS THOSE WHO MUST ULTIMATELY LIVE WITH THE CONSEQUENCES OF THE DECISIONS THAT ARE BEING MADE THE COURT FIGHT THAT HAS RAGED IS OSTENSIBLY TO PROTECT THE INTERESTS OF PARAMOUNT'S SHAREHOLDERS BUT TO DATE NO ONE HAS ASKED THE SHAREHOLDERS WHO ARE OSTENSIBLY BEING EITHER DAMAGED BY THE BOARD ACCORDING TO THE DELAWARE COURT OR HELPED BY THE BOARD TO INDICATE DIRECTLY HOW THEY FEEL ABOUT THE OUTCOME IN THE ABSENCE OF A DIRECT SHAREHOLDER VOICE THE RESULT IS JOUSTING BETWEEN AN EVERESCALATING NUMBER OF PARTIES WHO ARE NOT SHAREHOLDERS BUT PURPORT TO SPEAK FOR THEM THIS PATTERN IS TYPICAL OF THE TAKEOVER BATTLES DURING THE 1980S THE COURTS ARE ULTIMATELY ASKED TO REVIEW THE DIRECTORS' ACTIONS AND RULE ON WHETHER THEY HAVE MADE THE DECISIONS THAT SHAREHOLDERS WOULD HAVE WANTED TO OCCUR THE LACK OF SHAREHOLDER VOICE THAT HAS BEEN EVIDENT IN PAST TAKEOVER BATTLES IS AT ODDS WITH THE VIVID AND HEARTENING TRENDS IN CORPORATE GOVERNANCE THAT HAVE OCCURRED IN 1993 JUST MONTHS AGO THE FINANCIAL AND CORPORATE COMMUNITIES WERE RIVETED BY SUDDEN CHANGES IN DIRECTION THAT OCCURRED AT MAJOR AMERICAN CORPORATIONS THESE CHANGES OCCURRED PRECISELY BECAUSE LARGE INSTITUTIONAL SHAREHOLDERS EXERCISED THEIR VOICE COMMUNICATING THEIR VIEWS DIRECTLY TO CORPORATE BOARDS SEEN IN THIS LIGHT THE ACTIVITY THAT HAS BEEN OCCURRING AT MEDICAL CARE AMERICA STANDS AS A PROMISING CONTRAST TO THE TRADITIONAL TAKEOVER DYNAMICS AT MEDICAL CARE SHAREHOLDERS HAVE DEVELOPED A STRATEGY FOR EXERCISING THEIR COLLECTIVE VOICE AND HAVING A DIRECT IMPACT ON THE PROGRESS OF A MERGER PROPOSAL THE RESULT IS AN EMERGING MODEL FOR A NEW WAY OF ADJUDICATING TAKEOVERS WHICH REPLACES THE MACHINATIONS OF THOSE WHO WOULD SPEAK FOR SHAREHOLDERS WITH THE DIRECT VIEWS AND OPINIONS OF SHAREHOLDERS THEMSELVES THE MEDICAL CARE CONTEST BEGAN A FEW WEEKS AGO AFTER INITIAL PRIVATE OVERTURES WERE REBUFFED THE CHIEF EXECUTIVE OFFICER OF SURGICAL CARE AFFILIATES THE BIDDER MADE PUBLIC HIS INTEREST IN CONSUMMATING A MERGER WITH MEDICAL CARE AMERICA THROUGH A STOCK SWAP THE OFFER CARRIED THE PROSPECT OF A SUBSTANTIAL PREMIUM FOR MEDICAL CARE SHAREHOLDERS AND PERHAPS MORE IMPORTANT OFFERED THE PROSPECT OF MERGING A GROWING DYNAMIC COMPANY SURGICAL CARE WITH ONE MEDICAL CARE THAT HAD FOR THE PAST TWO YEARS EXHIBITED DISTRESSING PERFORMANCE BUT THE OFFER BY SURGICAL CARE WAS PUBLICLY REBUFFED BY DONALD STEEN CEO OF MEDICAL CARE MR STEEN STATED THAT A COMBINATION BETWEEN THE TWO COMPANIES WAS NOT APPROPRIATE AND THAT THE BOARD WOULD NOT HOLD DISCUSSIONS WITH OFFICIALS OF SURGICAL CARE ON THE SURFACE THE MEDICAL CARE BOARD'S BEHAVIOR WAS DISTRESSINGLY SIMILAR TO THAT RECENTLY EXCORIATED BY VICE CHANCELLOR JACOBS IN THE PARAMOUNT CASE THE BOARD REJECTED A PROPOSAL FOR A VALUEENHANCING STRATEGIC COMBINATION WITHOUT REVIEWING MATERIALS PREPARED BY SURGICAL CARE OR MEETING WITH SURGICAL CARE SHORTLY AFTER THE INITIAL REJECTION OF THE OFFER SEVEN MAJOR HOLDERS OF MEDICAL CARE CONVENED IN NEW YORK FOR A MEETING TO SHARE CONCERNS REPRESENTED AT THE MEETING WAS APPROXIMATELY 30 OF THE STOCK OF MEDICAL CARE THE INSTITUTIONAL HOLDERS DISCUSSED THE SITUATION AND ANALYZED WHAT EACH OF THEM COULD DO TO INFORM THE BOARD THAT THE PATH TAKEN TO DATE WAS OUT OF LINE WITH THEIR OWN DESIRES SHAREHOLDERS ADOPTED A PLAN OF ACTION SUGGESTED BY THE RECENT TRENDS IN THE CORPORATE GOVERNANCE ARENA AND THE VIVID WIDELY CHRONICLED EVENTS AT COMPANIES SUCH AS WESTINGHOUSE AND AMERICAN EXPRESS THEY MOVED TO MOBILIZE THE VOICE OF MEDICAL CARE'S INSTITUTIONAL SHAREHOLDERS TO MAKE IT AS CLEAR AS POSSIBLE AS QUICKLY AS POSSIBLE TO MEMBERS OF THE MEDICAL CARE BOARD THAT THE BOARD'S ACTIONS DID NOT REFLECT THEIR PREFERENCES AND CONCERNS AS SHAREHOLDERS OVER THE NEXT THREE WEEKS A REMARKABLE PROCESS UNFOLDED ON AN ENTIRELY INFORMAL BASIS MEDICAL CARE'S INSTITUTIONAL HOLDERS BEGAN A NETWORK OF COMMUNICATIONS WITH THE GOAL OF ENERGIZING ONE ANOTHER TO LOBBY THE MEDICAL CARE BOARD IN ADDITION THE SAME SEVEN SHAREHOLDERS WHO MET TOGETHER IN NEW YORK JOURNEYED TO DALLAS TO MEET WITH MEDICAL CARE'S CEO DONALD STEEN IN THE ENSUING DAYS LETTERS FROM MAJOR INSTITUTIONS WITH A SIGNIFICANT FINANCIAL STAKE IN MEDICAL CARE BEGAN TO APPEAR AT THE OFFICES AND HOMES OF THE COMPANY'S DIRECTORS AS THE DAYS PASSED THE INFORMAL CAMPAIGN BEGAN TO SHOW RESULTS ONE MEMBER OF THE MEDICAL CARE BOARD EXPRESSED PUBLIC SUPPORT FOR THE SHAREHOLDER POSITION AND CRITICIZED THE MANNER IN WHICH THE BOARD HAD HANDLED THE SURGICAL CARE PROPOSAL THEN AFTER THE MEETING WITH SHAREHOLDERS IN DALLAS MR STEEN CHANGED HIS POSITION HE INDICATED THAT THE SURGICAL CARE OFFER HAD BEEN INADEQUATE RATHER THAN NOT APPROPRIATE AND THAT HIGHER OFFERS WOULD BE CONSIDERED LAST WEEK THE PROCESS MOVED A STAGE FURTHER JOEL GORDON THE CEO OF SURGICAL CARE ANNOUNCED THAT HE WOULD WITHDRAW HIS OFFER IF MEDICAL CARE DID NOT SCHEDULE A MEETING WITH SURGICAL CARE BY TODAY AS LETTERS CONTINUED TO MOUNT MR STEEN ANNOUNCED THAT HE WAS WILLING TO MEET WITH SURGICAL CARE OFFICIALS TO DISCUSS AN OFFER THAT MEETING OCCURRED YESTERDAY THE MEDICAL CARE BOARD WILL REPORTEDLY NOW MEET TOMORROW TO REVIEW THE SITUATION THAT MEETING WILL OCCUR IN THE AFTERMATH OF PRELIMINARY DISCUSSIONS WITH SURGICAL CARE IN ADDITION IT WILL OCCUR AFTER ABOUT 20 MAJOR INSTITUTIONAL SHAREHOLDERS REPRESENTING OVER 40 OF MEDICAL CARE'S STOCK HAVE REPORTEDLY WRITTEN LETTERS TO EACH MEMBER OF THE MEDICAL CARE BOARD THESE LETTERS REPRESENT THE OPINIONS OF SOME OF THE LARGEST AND MOST PRESTIGIOUS INVESTING INSTITUTIONS IN THE US IN ADDITION 25 MORE INSTITUTIONS REPRESENTING AN ADDITIONAL 18 OF SHARES HAVE REPORTEDLY INDICATED THROUGH PHONE CONVERSATIONS WITH SHAREHOLDERS AND COMPANY OFFICIALS THAT THEY SUPPORT THE ORGANIZERS' WISHES THE STORY IS NOT YET OVER AT MEDICAL CARE THE COMPANY REMAINS PROTECTED BY A BEVY OF CHARTER AND BYLAW PROVISIONS THAT MAKE IT VIRTUALLY IMPOSSIBLE FOR SHAREHOLDERS TO TAKE MORE DIRECT ACTION TO PRESS THEIR CASE UNTIL LATE NEXT SPRING BUT THROUGH THIS UNIQUE CAMPAIGN THE BOARD AS WELL AS MEDICAL CARE'S FINANCIAL AND LEGAL ADVISERS HAVE BEEN BROUGHT FACE TO FACE WITH EVIDENCE THAT THE NATION'S MOST PRESTIGIOUS INVESTING INSTITUTIONS REPRESENTING A MAJORITY OF MEDICAL CARE'S SHARES DISAGREE SHARPLY WITH THE BOARD'S DECISION TO THWART THE SURGICAL CARE MERGER PROPOSAL A DECISION BY THE BOARD TOMORROW NOT TO ENTER IN FULL NEGOTIATIONS WITH SURGICAL CARE WOULD HAVE TO BE INTERPRETED AS EGREGIOUS WHEN MADE IN THE FACE OF DIRECT EVIDENCE PROVIDED BY SHAREHOLDERS THEMSELVES THAT SUCH NEGOTIATIONS ARE WHAT THEY WANT THE PROCESS THAT HAS ENSUED AND THE PROGRESS THAT HAS BEEN MADE AUGUR WELL FOR THE DEVELOPMENT OF A NEW MODEL FOR RESOLVING TAKEOVER SITUATIONS THE ACTIONS OF MEDICAL CARE'S SHAREHOLDERS SUGGEST THE BENEFITS THAT CAN FLOW IF SHAREHOLDERS CAN DEVISE WAYS TO MAKE THEIR OWN VIEWS HEARD DIRECTLY INSTEAD OF HAVING TO DEPEND ON EVERYONE ELSE THE COURTS THE LAWYERS THE PUBLIC RELATIONS PEOPLE THE INVESTMENT BANKS THE BIDDERS THEMSELVES TO DO THEIR JOB FOR THEM JUST AS IN PUBLIC GOVERNANCE IN CORPORATE GOVERNANCE THERE IS NO SUBSTITUTE FOR AN INFORMED INVOLVED SET OF CONSTITUENTS WHO ARE WILLING TO TAKE AN ACTIVE HAND IN MAKING THE PROCESS WORK MR POUND IS AN ASSOCIATE PROFESSOR OF PUBLIC POLICY AT HARVARD'S KENNEDY SCHOOL OF GOVERNMENT HE HAS ADVISED TAYLOR & CO A SHAREHOLDER OF MEDICAL CARE DURING THE ACTIVITIES DESCRIBED IN THIS ARTICLE 9312070046 931207 BUSINESS BRIEF BARNETT BANKS INC JUDGE REJECTS SUIT SEEKING TO SELL INSURANCE IN FLORIDA BARNETT BANKS INC LOST A ROUND IN ITS LEGAL BATTLE FOR THE RIGHT TO SELL INSURANCE IN FLORIDA A JUDGE IN US DISTRICT COURT IN JACKSONVILLE FLA YESTERDAY REJECTED BARNETT'S ASSERTION IN A LAWSUIT THAT FEDERAL STATUTES SHOULD OVERRIDE A STATE LAW PROHIBITING BANKHOLDING COMPANIES FROM SELLING INSURANCE A SPOKESMAN FOR BARNETT SAID THE COMPANY HAS APPEALED THE CASE TO THE US COURT OF APPEALS IN ATLANTA TOM GALLAGHER FLORIDA'S TREASURER AND INSURANCE COMMISSIONER HAILED THE RULING AS A VICTORY FOR CONSUMERS THE FLORIDA DEPARTMENT OF INSURANCE THE DEFENDANT IN THE CASE OPPOSES THE EFFORTS OF BANKS TO SELL INSURANCE PRIMARILY FOR FEAR OF COERCION WHEN INDIVIDUALS APPLY FOR LOANS MR GALLAGHER HAS SAID THE SUIT FOLLOWS BARNETT'S OCTOBER PURCHASE OF AN INSURANCE AGENCY IN BELLEVIEW FLA UNDER FEDERAL LAW BANKS ARE ALLOWED TO OWN AND OPERATE INSURANCE AGENCIES FROM TOWNS WITH LESS THAN 5000 RESIDENTS 9312070045 931207 BUSINESS BRIEF DUPONT CO ALLIANCE TO SELL PRODUCTS IN ASIA PACIFIC AREA FORMED DUPONT CO WILMINGTON DEL SAID IT FORMED AN ALLIANCE WITH MITSUI & CO OF JAPAN TO MARKET AND SELL PRODUCTS IN THE ASIA PACIFIC REGION BASED ON ADVANCED COMPOSITES TECHNOLOGIES THE CHEMICAL CONCERN SAID IT WILL SUPPORT THE ALLIANCE WITH RESEARCH AND DEVELOPMENT AND TECHNICAL SERVICE EXPERTISE FROM ITS APPLICATION DEVELOPMENT CENTER AT YOKOHAMA DUPONT'S ADVANCED MATERIAL SYSTEMS TECHNOLOGIES INTEGRATE THE COMPANY'S TRADITIONAL EXPERTISE IN POLYMERS FIBERS CERAMICS AND ENGINEERING DUPONT SAID ITS GOAL IS TO SHORTEN THE TIME REQUIRED TO COMMERCIALIZE ITS TECHNOLOGY BY PARTNERING WITH KEY CUSTOMERS IN ASIA PACIFIC THE RESULTING PRODUCTS CAN REPLACE METALS AND OTHER MATERIALS WHERE SUBSTANTIALLY INCREASED PERFORMANCE IS REQUIRED MANY APPLICATIONS EXIST IN FIELDS INCLUDING AEROSPACE AUTOMOTIVE INDUSTRIAL AND RECREATION DUPONT SAID MITSUI WILL BE RESPONSIBLE FOR PROMOTION AND SALES IN THE ASIA PACIFIC REGION 9312070044 931207 TWO IN DRESSERRAND CASE GET 5YEAR PRISON TERMS HOUSTON TWO MEN WERE SENTENCED TO FIVEYEAR PRISON TERMS BY A HARRIS COUNTY COURT JUDGE ON CHARGES OF COMMERCIAL BRIBERY AND THEFT OF TRADE SECRETS FROM DRESSERRAND CO LEADING THE INVESTIGATION WAS A PRIVATE SECURITY FIRM FAIRFAX GROUP LTD BASED IN FALLS CHURCH VA ONE OF ITS DETECTIVES TRISH GUESS POSED AS A PROSPECTIVE BUYER OF TRADE SECRETS TO ENSNARE MR WEIGHTMAN IN THE STING OPERATION ALSO SENTENCED FOLLOWING A TWOWEEK TRIAL LAST SEPTEMBER WAS MATTHEW MCGOWAN A FORMER DRESSERRAND SALESMAN DRESSERRAND IS A PARTNERSHIP FORMED BY INGERSOLLRAND CO WOODCLIFF LAKE NJ AND DRESSER INDUSTRIES INC DALLAS 9312070043 931207 CORRECTION IN GOOD HIDDEN NEWS ABOUT THE AIDS EPIDEMIC BY ROBERT ROOTBERNSTEIN DEC 2 TWO NUMBERS WERE INCORRECT THE NUMBER OF PEOPLE DIAGNOSED WITH AIDS AND REPORTED TO THE CENTERS FOR DISEASE CONTROL BETWEEN JANUARY AND SEPTEMBER 1992 WAS 36065 THE TOTAL FOR THE FIRST NINE MONTHS OF 1993 THUS INDICATES A 141 INCREASE FROM THE YEAREARLIER PERIOD 9312070042 931207 BUSINESS BRIEF HAWTHORNE FINANCIAL CORP CONCERN'S QUARTERLY PAYOUT IS SUSPENDED INDEFINITELY' HAWTHORNE FINANCIAL CORP HAWTHORNE CALIF AFTER POSTING LARGE LOSSES AND ASSET WRITEDOWNS OVER THE PAST YEAR SAID IT SUSPENDED INDEFINITELY ITS QUARTERLY DIVIDEND THE BOARD ACTION CAME IN AUGUST AND WAS COMMUNICATED TO SHAREHOLDERS BUT WASN'T ANNOUNCED IN A NEWS RELEASE UNTIL YESTERDAY ACKNOWLEDGED JERRO OTSUKI SENIOR VICE PRESIDENT AND TREASURER THE COMPANY DIDN'T MAKE ANY PAYOUT IN NOVEMBER SOME INVESTORS APPARENTLY WERE SURPRISED BY THE ANNOUNCEMENT WHICH SENT HAWTHORNE SHARES DOWN 12 OR 175 TO 1250 IN NASDAQ STOCK MARKET TRADING THE LAST PAYOUT IN THE AMOUNT OF 125 CENTS WAS PAID IN AUGUST MR OTSUKI SAID THE QUARTERLY DIVIDEND HAD BEEN 25 CENTS FOR SEVERAL YEARS UNTIL THE BOARD CUT IT IN HALF IN FEBRUARY THAT ACTION REFLECTED A DEMAND BY THE OFFICE OF THRIFT SUPERVISION THAT THE HOLDING COMPANY'S MAIN UNIT HAWTHORNE SAVINGS & LOAN ASSOCIATION INCREASE ITS LOSS RESERVES BY ABOUT 50 MILLION FOR THE NINE MONTHS ENDED SEPT 30 THE COMPANY POSTED A NET LOSS OF 99 MILLION OR 380 A SHARE AFTER 26 MILLION OF ASSET WRITEDOWNS 9312070041 931207 A REAL PEACE PLAN FOR ISRAEL BY BENJAMIN NETANYAHU LIKE A FOG BURNED AWAY BY AN UNFORGIVING SUN THE EUPHORIA SURROUNDING THE PLOISRAEL AGREEMENT HAS EVAPORATED UNDER THE HARSH GLARE OF REALITY IN THE MONTHS SINCE THE SIGNING OF THIS AGREEMENT PUBLIC OPINION IN ISRAEL HAS EXPERIENCED A SEA CHANGE THE INITIAL GUSH OF WIDEEYED HOPE HAS GIVEN WAY TO DOUBT FRUSTRATION AND DESPAIR THE FIRST REASON FOR THIS CHANGE IS THE RISING TIDE OF TERRORISM SINCE THE SIGNING CEREMONY IN WASHINGTON JEWS ARE BEING KNIFED MURDERED AND BURNED WITH ALMOST DAILY REGULARITY VARIOUS PALESTINIAN TERRORIST GROUPS ISSUE INCREASINGLY MILITANT EXHORTATIONS THAT THIS IS MERELY A PRELUDE TO A LARGER BLOODBATH ONCE THE ISRAELI ARMY VACATES THE TERRITORY THIS DOES NOT BODE WELL FOR A GENUINE PEACE A GOAL SHARED BY ALL ISRAELIS REGARDLESS OF THEIR POLITICAL DIFFERENCES SUCH A PEACE MUST BEGIN WITH THE ABANDONMENT OF VIOLENCE NOT WITH ITS INTENSIFICATION SEEING THE SPATE OF GRISLY MURDERS OF INNOCENT JEWS THE ISRAELI PUBLIC NATURALLY BEGINS TO ASK WHAT KIND OF PEACE IS THIS THERE ARE MANY POWERFUL REASONS FOR DOUBT YASSER ARAFAT PROMISED TO CONDEMN TERRORISM AT EVERY PUBLIC FORUM HE HAS DONE NOTHING OF THE KIND EVEN AT THE SIGNING CEREMONY ON THE WHITE HOUSE LAWN HE DECLINED TO MENTION THE SUBJECT WITH EACH FRESH ACT OF TERRORISM SINCE THEN HE HAS KEPT MUM THE ONE EXCEPTION A FEW OBLIGATORY SENTENCES SENT ON A FACSIMILE MACHINE FROM TUNIS WERE EXTRACTED FROM HIM BY PRESIDENT CLINTON THE WAY ONE PULLS A STUBBORN TOOTH FROM A RELUCTANT PATIENT ARAFAT HAS EQUALLY VIOLATED HIS PROMISE TO VIGOROUSLY ACT AGAINST THOSE PALESTINIANS PERPETRATING TERRORISM THERE IS ALWAYS AN EXPLANATION FIRST IT WAS SAID THAT HE CANNOT CONTROL THE HAMAS FUNDAMENTALISTS WHO ARE NOT MEMBERS OF THE PLO THEN WHEN THE PLO CONSTITUENT GROUPS OF HABASH AND HAWATMEH LAUNCHED ATTACKS IT WAS SAID THAT HE COULD NOT CONTROL THEM EITHER FINALLY WHEN MEMBERS OF HIS FATAH ORGANIZATION WERE CAUGHT IN THE MURDER OF JEWS IT WAS SAID THAT HE LACKS CONTROL OVER HIS OWN ORGANIZATION AS WELL IN PRACTICE THE PLO AND HAMAS JOINTLY ORGANIZE VIOLENT RIOTS AND THE PLO PERSISTENTLY DEMANDS THE RELEASE OF JAILED HAMAS KILLERS ALONGSIDE ITS OWN IF THE IDEA BEHIND THE PLOISRAEL AGREEMENT WAS THAT ONE BAND OF TERRORISTS WOULD PROTECT US FROM ANOTHER THE VERY OPPOSITE HAS HAPPENED THERE IS COLLUSION NOT COLLISION BETWEEN THE TWO GROUPS SO MUCH FOR THE FIRST PILLAR OF THE AGREEMENT THE PLO'S SUPPOSED ESPOUSAL OF ANTITERRORISM THE OTHER PILLAR OF THE AGREEMENT HAS ALSO PROVED EMINENTLY COLLAPSIBLE ARAFAT HAS FAILED TO DELIVER ON HIS PROMISE THAT THE PLO WOULD FORMALLY ABROGATE THE PLO CHARTER THAT CALLS FOR ISRAEL'S DESTRUCTION AFTER ALL HOW CAN YOU NEGOTIATE PEACE WITH SOMEONE WHO CONTINUES TO SEEK YOUR LIQUIDATION IN THE MONTHS SINCE OSLO HE HAS REFUSED TO CONVENE THE PALESTINE NATIONAL COUNCIL THE ONE BODY THAT HAS THE AUTHORITY TO ALTER THE PLO CHARTER HERE TOO EXPLANATIONS ARE READILY OFFERED ARAFAT IS UNABLE TO MUSTER THE NECESSARY VOTES HE LACKS THE NECESSARY AUTHORITY ETC THE APOLOGISTS DELIBERATELY MISS THE POINT ARAFAT IS UNABLE TO CHANGE THE CHARTER BECAUSE THE OVERWHELMING MAJORITY OF THE PLO INCLUDING ARAFAT HIMSELF CONTINUE TO OPENLY CLING TO THE GOAL OF ELIMINATING THE JEWISH STATE AND SEE THE CURRENT NEGOTIATIONS MERELY AS A STEPPING STONE TOWARD THAT END HOW TO SET THINGS STRAIGHT FIRST ISRAEL MUST FORCEFULLY DEMAND THAT THE PLO KEEP ITS END OF THE BARGAIN ALTHOUGH MY OPPOSITION TO THE AGREEMENT IS WELL KNOWN I HAVE SAID THAT A GOVERNMENT THAT I WOULD LEAD WOULD HONOR AGREEMENTS UNDERTAKEN BY THE PRESENT GOVERNMENT PROVIDING THESE ARE HONORED BY THE OTHER SIDE AS WELL AN AGREEMENT THAT IS SYSTEMATICALLY VIOLATED BY ONE PARTY WILL SOON BE VITIATED OF ANY MEANING SECOND PRIME MINISTER YITZHAK RABIN SHOULD DECLARE THE COMING REDEPLOYMENT OF THE ISRAELI ARMY FROM GAZA AS A TEST CASE DURING A TEST PERIOD OF BETWEEN ONE AND TWO YEARS IT WOULD BE POSSIBLE TO ASCERTAIN WHETHER THE PLO KEEPS ORDER AND SUPPRESSES TERRORISM AND WHETHER IT BREAKS AWAY FROM HAMAS AND THE OTHER TERRORIST GROUPS AND NULLIFIES ITS CHARTER THIRD ISRAEL MUST PRESENT A CLEAR VISION OF WHERE IT WANTS THE NEGOTIATIONS TO LEAD THE PRESENT GOVERNMENT'S POLICY IS INEXORABLY LEADING TO A COMPLETE ISRAELI WITHDRAWAL FROM THE DISPUTED TERRITORIES AND THE ESTABLISHMENT OF A PLO STATE PERCHED ATOP ISRAEL'S CITIES ONLY NINE MILES FROM THE SEA I AM CONVINCED THAT THIS WILL IMPERIL THE VERY SURVIVAL OF THE JEWISH STATE AND SCUTTLE ANY HOPE FOR A LASTING PEACE I PROPOSE AN ALTERNATIVE FOR PEACE TO BECOME A REALITY A BALANCE MUST BE STRUCK BETWEEN ISRAEL'S NEED FOR SECURITY AND THE PALESTINIANS' NEED TO CONDUCT THEIR OWN AFFAIRS SUCH A BALANCE CAN BE ACHIEVED BY A PEACE PLAN THAT WOULD DESIGNATE THE AREAS OF DENSE PALESTINIAN POPULATION AS AUTONOMOUS AREAS AND THE OPEN AND LARGELY UNPOPULATED LAND AS ISRAELI SECURITY ZONES WITHIN THE AUTONOMOUS AREAS THE PALESTINIANS WOULD RUN THEIR OWN LIVES WHILE ISRAEL WOULD RETAIN DIRECT CONTROL OF THE STRATEGIC TERRAIN SO VITAL FOR ITS DEFENSE AGAINST TERRORISM AND INVASION FROM THE EAST IN THE MIDDLE EAST THE ONLY PEACE THAT WILL ENDURE IS A PEACE THAT CAN BE DEFENDED SUCH A PEACE WILL CEASE BEING A DISTANT AND UNATTAINABLE VISION WHEN THE ARAB SIDE RECOGNIZES THIS REALITY AND FULFILLS ITS OBLIGATION TO STAMP OUT VIOLENCE AND TERROR MR NETANYAHU IS CHAIRMAN OF THE LIKUD PARTY OF ISRAEL AND AUTHOR OF A PLACE AMONG THE NATIONS BANTAM BOOKS 9312070040 931207 BUSINESS BRIEF PACIFIC HEALTH SYSTEMS INC UNIHEALTH AMERICA LOWERS ITS INTEREST IN FIRM TO 49 PACIFIC HEALTH SYSTEMS INC SAID ITS BIGGEST SHAREHOLDER UNIHEALTH AMERICA SOLD 4 OF THE COMPANY FOR 195 MILLION REDUCING ITS INTEREST TO 49 UNIHEALTH A NONPROFIT HEALTHCARE SYSTEM BASED IN BURBANK CALIF SOLD A 15 STAKE IN PACIFIC HEALTH CYPRESS CALIF IN AN INITIAL PUBLIC OFFERING IN 1985 UNIHEALTH HAS CONTINUED TO REDUCE ITS STAKE SINCE THEN SELLING 11 IN 1989 IN ADDITION TO OTHER LESS SIGNIFICANT TRANSACTIONS A UNIHEALTH SPOKESMAN SAID THE COMPANY DECIDED TO GIVE UP ITS CONTROLLING STAKE IN ORDER TO ALLOW PACIFIC HEALTH TO TAKE ADVANTAGE OF THE POOLING METHOD OF ACCOUNTING WHICH APPLIES TO ACQUISITIONS BY A COMPANY THAT ISN'T 50OWNED BY ANOTHER COMPANY PACIFIC HEALTH IS IN AN ACQUISITION MODE AND BEFORE THE SALE UNIHEALTH HAD OWNED 53 OF THE VOTING STOCK OF PACIFIC HEALTH THE COMPANIES SAID PACIFIC HEALTH A MANAGED CARE ORGANIZATION SERVES EMPLOYER GROUPS AND MEDICARE BENEFICIARIES IN CALIFORNIA OKLAHOMA OREGON TEXAS AND WASHINGTON STATE 9312070039 931207 INDONESIA SEES GROWTH OVER 6 JAKARTA INDONESIA GROSS DOMESTIC PRODUCT IN INDONESIA SHOULD GROW BETWEEN 66 AND 68 THIS YEAR AND AT LEAST AS MUCH IN 1994 IF CONDITIONS ARE BASICALLY UNCHANGED A CENTRAL BANK OFFICIAL SAID AT A NEWS CONFERENCE SOME PRIVATE ECONOMISTS THINK GROWTH COULD TOP 7 THIS YEAR THE CENTRAL BANK MAY BE STICKING WITH ITS CUSTOMARY CONSERVATISM IN CITING A LOWER RANGE GDP GREW 63 LAST YEAR ACCORDING TO THE GOVERNMENT'S FIGURE 9312070038 931207 BUSINESS BRIEF CYTOCARE INC MEDICAL CONCERN CONSIDERS SPLITTING UP ITS BUSINESSES CYTOCARE INC SAID IT IS CONSIDERING SPLITTING INTO SEVERAL PARTS AND IS MULLING STRATEGIES THAT INCLUDE POSSIBLE SPINOFFS JOINT VENTURES AND THE ESTABLISHMENT OF ROYALTY TRUSTS ERROL G PAYNE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PHARMACEUTICAL DEVELOPER AND MEDICALDEVICE MAKER SAID CYTOCARE MAY SPLIT INTO MORE THAN TWO INDEPENDENT BUSINESSES BY THE END OF 1994 WE HAVEN'T RECEIVED A FAIR VALUATION BY KEEPING BUSINESSES WITH SUCH A DIVERSE RISK PROFILE BUNDLED TOGETHER THE EXECUTIVE SAID CYTOCARE BASED IN IRVINE CALIF MAKES PRODUCTS TO TREAT KIDNEY AND URINARY DISEASES AND HAS A MEDICAL BIOLOGY DIVISION THAT IS RESEARCHING TREATMENTS FOR PROSTATE DISEASE MR PAYNE SAID CYTOCARE IS IN DISCUSSIONS WITH PARTNERS INTERESTED IN PLAYING A ROLE IN THE COMPANY'S RESHAPED INDEPENDENT BUSINESSES HE WOULDN'T BE MORE SPECIFIC CYTOCARE EXPECTS TO START RESHAPING ITSELF IN THE 1994 FIRST QUARTER HE SAID IN LATE NASDAQ STOCK MARKET TRADING CYTOCARE SHARES WERE QUOTED AT 7 UP 1125 9312070037 931207 BUSINESS BRIEF MATSUSHITA ELECTRIC INDUSTRIAL CO US ARM WILL CONSOLIDATE OPERATIONS OF FOUR UNITS MATSUSHITA ELECTRIC CORP OF AMERICA BASED IN SECAUCUS NJ SAID IT WILL CONSOLIDATE MARKETING AND SERVICE OPERATIONS OF FOUR OF ITS US CONSUMER ELECTRONICS UNITS MATSUSHITA IS THE US ARM OF JAPANESE CONSUMER ELECTRONICS GIANT MATSUSHITA ELECTRIC INDUSTRIAL CO ADMINISTRATIVE AND MARKETING FUNCTIONS OF PANASONIC CO PANASONIC CO WEST OF AMERICA QUASAR CO AND MATSUSHITA SERVICES CO WILL BE MERGED TO FORM MATSUSHITA CONSUMER ELECTRONICS CO TO START OPERATIONS FROM SECAUCUS ON APRIL 1 THE MOVE WILL ENABLE MATSUSHITA ELECTRIC CORP TO REACH OUT TO MORE MARKET SEGMENTS STRENGTHEN DISTRIBUTION CHANNELS AND ENHANCE PRODUCT DEVELOPMENT AND SERVICE SAID TED INOUE PRESIDENT OF PANASONIC CO AND OF THE NEW ENTITY MATSUSHITA ELECTRIC CORP POSTED SALES OF 61 BILLION IN FISCAL 1993 ENDED MARCH 31 9312070036 931207 REVIEW & OUTLOOK EDITORIAL RIEGLE KEEPS THE RTC HEADLESS AFTER 20 WEEKS OF COOLING HIS HEELS IN A WASHINGTON HOTEL STANLEY TATE FINALLY PACKED HIS BAGS AND WENT BACK TO MIAMI FOR GOOD HE WAS SUPPOSED TO BE BILL CLINTON'S PICK TO RUN THE RESOLUTION TRUST CORPORATION BUT HE DIDN'T COUNT ON LAMEDUCK SENATE BANKING CHAIRMAN DON RIEGLE'S STONEWALLING THE MICHIGAN SENATOR MAY HAVE GIVEN UP THE IDEA OF SAVING HIS POLITICAL SKIN AFTER THE KEATING FIVE SCANDAL BUT APPARENTLY NOT THE IDEA OF SPINNING HISTORY INTO BELIEVING HE WAS SOMEHOW A HERO OF THE S&L DEBACLE IN FACT MR TATE WAS VERY MUCH INTERESTED IN THE DEBACLE AND SPENT HIS TIME IN THE RIEGLE PURGATORY DELVING INTO WHAT ACTUALLY GOES ON AT THE RTC INCLUDING ITS LEGAL ACTIVITIES WHAT MR TATE FOUND WAS A MESS WITH LAWSUITS BEING BROUGHT WILLYNILLY AGAINST BANKERS AND FINANCIAL PROFESSIONALS WITHOUT REGARD FOR COSTEFFECTIVENESS LET ALONE THE PROSAIC MATTER OF GUILT OR INNOCENCE LOOKING BACK ON HOW SOME OF THESE LAWSUITS WERE FILED IT'S A WONDER ANYBODY WOULD WANT TO BECOME A DIRECTOR OF A BANK MR TATE TELLS US YOU CAN BE SUED FOR A DECISION YOU MADE FIVE YEARS BEFORE THE LOAN EVER WENT DOWN THE TUBES REAL ESTATE IS A FUNNY BUSINESS AND LAWYERS AREN'T EQUIPPED TO JUDGE WHETHER A LOAN WAS BAD AT THE TIME IT WAS MADE BEFORE COMING TO WASHINGTON MR TATE SPENT THREE YEARS ON THE RTC'S ADVISORY BOARD HE WAS NO SHRINKING VIOLET ON THE SUBJECT OF THE AGENCY'S MANAGERIAL INFIRMITIES THERE COULD HARDLY BE A BETTER CHOICE EDITORIALIZED THE HOMETOWN MIAMI HERALD WHICH CALLED THE SUCCESSFUL LOCAL DEVELOPER A RESCUER OF THE THOROUGHLY SCREWEDUP BARELY HAD HE TOUCHED DOWN AT WASHINGTON NATIONAL WHEN MR TATE FOUND HIMSELF THE TARGET OF ANONYMOUS LEAKERS IN THE FAT RTC BUREAUCRACY WHO TRIED TO PAINT HIM AS A CRONY OF DAVID PAUL THE EGREGIOUS CHAIRMAN OF FAILED CENTRUST SAVINGS IT SEEMS THAT AFTER READING ABOUT THE CENTRUST CASE MR TATE HAD ASKED FOR A BRIEFING WHEN THE RTC SENT ALONG A BIG FILE MARKED CONFIDENTIAL HE SENT IT BACK UNOPENED THOUGH SOMEHOW THAT PART WAS OVERLOOKED IN THE LEAKDRIVEN NEWS COVERAGE NOBODY WITH A REPUTATION FOR SERIOUSNESS HAS QUESTIONED MR TATE'S PROBITY AND HIS WELLINFORMED CRITICISM OF THE RTC HAS BEEN MAINLY DIRECTED AT ITS BUSINESS OPERATIONS FOR ALL THAT THE ONE AREA OF THE RTC THAT WAS MOST VEHEMENT AGAINST MY NOMINATION HE TELLS US WAS THE LEGAL DEPARTMENT MR TATE CONTINUES THAT'S WHERE THE PLUMS ARE HUNDREDS OF MILLIONS OF DOLLARS IN LEGAL FEES TO OUTSIDE COUNSEL FRANKLY THERE'S A LOT OF ABUSE YOU HAVE ATTORNEYS LEAVING RTC ON FRIDAY AND A WEEK FROM MONDAY THEY'RE GETTING RTC WORK FOR THEIR NEW FIRMS I FOUND ONE CASE WHERE THEY PAID MORE THAN 600 AN HOUR IN LEGAL FEES MR TATE MADE MORE THAN 40 PHONE CALLS TO MR RIEGLE TO INQUIRE ABOUT GETTING A DATE FOR CONFIRMATION HEARINGS ONLY TO BE TOLD BY AN AIDE TO STOP MAKING A PEST OF HIMSELF WE GUESS THE SENATOR PREFERS RUNNING THE AGENCY HIMSELF HIS COMMITTEE HAS PLAYED HOST TO A PARADE OF WHISTLEBLOWERS WHO TROT UP TO COMPLAIN ABOUT HOW THEIR SUPERVISORS LET THIS OR THAT ARCH VILLAIN OFF THE HOOK TO THEIR CREDIT THE CLINTONITES NOMINATED MR TATE IN THE FIRST PLACE BECAUSE THE RTC NEEDED SOMEBODY WHO COULD WHIP THE PLACE INTO SHAPE HE CAME IN DECLARING THAT HIS TENURE OUGHT TO BE JUDGED BY HOW QUICKLY HE COULD PUT HIMSELF OUT OF BUSINESS AND HE PROPOSED LEGISLATION TO PREVENT STAFF ATTORNEYS WHO GO INTO PRIVATE PRACTICE FROM GETTING THEIR SNOUTS INTO THE RTC FEE TROUGH FOR A YEAR THIS MIGHT BE JUST ANOTHER TALE OF WASHINGTON'S TOXICITY FOR MEN AND WOMEN REMEMBER ZOE BAIRD WHO'VE ACTUALLY DONE PRODUCTIVE WORK IN THE REAL WORLD BUT THE RTC HAS BECOME A LIABILITY TO THE WHOLE ECONOMY ITS LEGAL JIHAD AGAINST THE FINANCIAL PROFESSIONS NOW HAS BANKERS SCARED TO TAKE A CHANCE ON ENTREPRENEURS AND ITS CRAVING FOR BUREAUCRATIC IMMORTALITY PUTS A CONTINUING SPOOK INTO THE PROPERTY MARKETS MR TATE'S RETURN TO MIAMI DOESN'T BODE WELL FOR GETTING THIS MONKEY OFF THE COUNTRY'S BACK 9312070035 931207 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH COMPANY PLANS TO LICENSE HOMESHOPPING SOFTWARE AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK SAID IT PLANS TO LICENSE HOMESHOPPING SOFTWARE DEVELOPED BY ESHOP INC A PRIVATE CONCERN BASED SAN MATEO CALIF TERMS WEREN'T DISCLOSED ESHOP SAID ITS SOFTWARE INITIALLY WILL ALLOW A USER TO GAIN ACCESS TO A NUMBER OF SHOPPING SERVICES USING A HOME COMPUTER UNLIKE HOMESHOPPING NETWORKS AVAILABLE ON TV ESHOP'S SOFTWARE GRAPHICS PROVIDE AN INTERACTIVE SHOPPING FORMAT WITH THE ABILITY TO MOVE FROM ONE DEPARTMENT TO ANOTHER TO VIEW AVAILABLE MERCHANDISE TV HOME SHOPPING IS A FASTGROWING 2 BILLION INDUSTRY IT IS CONCEIVABLE THAT AT&T COULD USE ITS PHONE NETWORK TO DELIVER HOMESHOPPING SERVICES TO CUSTOMERS AN AT&T SPOKESWOMAN SAID 9312070034 931207 BUSINESS BRIEF CONVERSION INDUSTRIES INC TALKS SUSPENDED REGARDING PURCHASE OF STAKE IN ARC CONVERSION INDUSTRIES INC AND ARC INTERNATIONAL CORP OF TORONTO SAID THEY SUSPENDED NEGOTIATIONS ABOUT A POSSIBLE PURCHASE BY THE PASADENA CALIF COMPANY OF AN 18 STAKE IN ARC WE BOTH HAD TOO MUCH ON OUR PLATES RIGHT NOW SAID MATTHIAS LEPO CONVERSION INDUSTRIES' DIRECTOR OF CORPORATE FINANCE WE MAY OR MAY NOT START UP NEGOTIATIONS AGAIN HE ADDED THE COMPANIES DISCLOSED THE TALKS IN OCTOBER AFTER NEWS OF THE SUSPENSION WAS ANNOUNCED SHARES OF ARC A MAKER OF MOVIE AND SPECIALTYRESTAURANT EQUIPMENT FELL 375 CENTS TO 3375 A SHARE IN AMERICAN STOCK EXCHANGE LATE TRADING CONVERSION INDUSTRIES SHARES ALSO ON THE AMERICAN EXCHANGE FELL 375 CENTS OR 51 TO 1175 A SHARE CONVERSION INDUSTRIES FINANCES AND INVESTS IN GROWTH COMPANIES 9312070033 931207 SPEAKING OF BUSINESS A NEW KIND OF BULL A NEW KIND OF BEAR BY LINDLEY H CLARK JR THE CURRENT BULL MARKET IN STOCKS BEGAN IN OCTOBER 1987 WHEN THE DOW JONES INDUSTRIAL AVERAGE BOTTOMED AT 1738 IT IS ALREADY THE LONGEST SINCE WORLD WAR II ACCORDING TO FIGURES COMPILED BY DAVID POOLE OF VAN ECK SECURITIES AND IT'S LIKELY TO CONTINUE AT LEAST A FEW MONTHS LONGER NO MATTER HOW LONG IT LASTS THOUGH THIS HAS BEEN A VERY PECULIAR BULL MARKET INVESTORS ESPECIALLY IN THE LAST COUPLE OF YEARS HAVE BEEN PRETTY CAREFUL THERE HAS BEEN LITTLE OF THE EXUBERANCE THAT HAS CHARACTERIZED PREVIOUS BULL MARKETS IF THERE HAS BEEN A DOMINANT EMOTION IT HAS BEEN FEAR THERE HAS BEEN THE FEAR OF BEING TRAPPED IN LOWINTERESTRATE BANK CDS FOR EXAMPLE THIS HAS LED TO A MOVE INTO THE STOCK MARKET A MOVE MARKED BY A CAUTIOUS DETERMINATION TO MINIMIZE LOSSES THE RESULT IS THAT SO FAR THE INDUSTRIAL AVERAGE HAS RISEN LESS THAN 115 IN THE CURRENT BULL MARKET THAT COMPARES WITH 250 IN THE 198287 BULL PERIOD BOTH BULL MARKETS WERE INTERRUPTED BY BRIEF CORRECTIONS GIVING EACH OF THEM WHAT MR POOLE CALLS A FIRST LEG AND A SECOND LEG WHERE DO WE GO FROM HERE PAUL MCCULLEY OF UBS SECURITIES IS AMONG THOSE WHO BELIEVE WE ALREADY HAVE A BEAR MARKET IN BONDS HIS SCENARIO GOES SOMETHING LIKE THIS WE'RE EXPERIENCING A SHARP RISE IN ECONOMIC GROWTH SOME ANALYSTS ARE PREDICTING THAT THE GROSS DOMESTIC PRODUCT WILL SURGE AT AN ANNUAL RATE OF 4 TO 5 IN THE CURRENT QUARTER GOOD NEWS NOT REALLY GROWTH OF ANYTHING LIKE THAT WILL STOP THE MOVE TO DISINFLATION AND THREATEN PRICE MOVES IN THE OPPOSITE DIRECTION THAT WILL SURELY BRING IN THE FEDERAL RESERVE FED OFFICIALS HAVE WARNED THAT SHORTTERM RATES OF ZERO IN INFLATIONADJUSTED TERMS ARE NOT INDEFINITELY SUSTAINABLE MR MCCULLEY THINKS THE FED WILL TIGHTEN UP BY SPRING BUT IT COULD MOVE EVEN SOONER THAN THAT BERT DOHMEN WHO WRITES THE WELLINGTON LETTER THINKS THE US BOND MARKET LOOKS SICK ON A TECHNICAL BASIS AND HAS TRACED OUT A SIGNIFICANT TOP ON THE LONGTERM CHARTS IF THE BOND MARKET IS IN TROUBLE HE ASKS CAN THE STOCK MARKET BE FAR BEHIND THE STOCK MARKET BOOM MR DOHMEN SAYS HAS BEEN CAUSED NOT BY GREAT CORPORATE EARNINGS BUT BY FALLING INTEREST RATES ONCE INVESTORS REALIZE THAT THE DECLINE IN RATES IS OVER AND THE NEXT SIGNIFICANT MOVE WILL BE UP THEY'LL STOP BUYING AND START SELLING IF WE'VE HAD A MILD BULL MARKET AND WE HAVE YOU MIGHT THINK THAT SOMEONE PLANNED IT THAT WAY BUT YOU'D BE WRONG CERTAINLY THE CLINTON ADMINISTRATION WOULD HAVE PREFERRED STRONGER ECONOMIC GROWTH THIS YEAR WITH LARGER GAINS FOR EMPLOYMENT THE FEDERAL RESERVE WOULD HAVE PREFERRED STRONGER GROWTH TOO THE FED HAS DEMONSTRATED ITS DESIRE BY FLOODING THE BANKS WITH MONEY IT HAS BEEN APPARENT THOUGH THAT THE CENTRAL BANK HAS KEPT A CLOSE WATCH ON PRICES A STRONG FOURTH QUARTER TOGETHER WITH A MODEST RISE IN THE INFLATION RATE WOULD BE ENOUGH TO TRIGGER A MODEST FED TIGHTENING BLUE CHIP FINANCIAL FORECASTS PUBLISHED IN ALEXANDRIA VA INTERVIEWS 50 FORECASTERS EACH MONTH ON THE AVERAGE THE FORECASTERS EXPECT A STEADY BUT MODEST RISE IN INTEREST RATES THROUGH 1994 SUMMING UP THEIR VIEWS THE PUBLICATION SAID THE FEDERAL RESERVE IS EXPECTED TO ADOPT A RESTRICTIVE POLICY IN 1994 IN RESPONSE TO ACCELERATED GROWTH AND INFLATIONARY RISKS THE FED FUNDS RATE THE FEE BANKS CHARGE ON OVERNIGHT LOANS TO ONE ANOTHER IS EXPECTED TO RISE TO 375 BY THE END OF 1994 A RELATED GROUP OF FORECASTERS THOSE INTERVIEWED BY BLUE CHIP ECONOMIC INDICATORS THINK THAT A MODEST RISE IN INTEREST RATES WILL LEAD TO A MODEST RISE IN THE ECONOMY THEY DO LOOK FOR A SPURT IN THE CURRENT QUARTER BUT EXPECT GDP TO RISE BY 28 IN 1994 THIS FORECAST OF COURSE ASSUMES THAT THE FEDERAL RESERVE WILL BE AS SUCCESSFUL IN STEERING A FINANCIAL COURSE NEXT YEAR AS IT HAS BEEN THIS YEAR NO MATTER WHAT THAT FELLOW IN THE WHITE HOUSE WANTS WE PRIMARILY WANT STABLE PRICES WE WILL BE WILLING TO SACRIFICE A LITTLE GROWTH IF THAT'S WHAT IT TAKES TO KEEP INFLATION DOWN AT ANY RATE I HOPE THAT'S WHAT THOSE PEOPLE AT THE FED ARE SAYING IF THEY ARE WE MAY FOLLOW UP AN ANEMIC BULL MARKET WITH AN UNUSUALLY STRONG MARKET FOR A BEAR SOME THINGS MIGHT BE BETTER I SUPPOSE BUT SOME THINGS COULD BE A WHOLE LOT WORSE 9312070032 931207 LETTERS TO THE EDITOR YOU'RE FLOGGING A DEAD HORSE I AM DISAPPOINTED IN YOUR TREATMENT OF TELEDYNE INC IN THE NOV 5 ARTICLE SOME WEAPONS MAKERS ARE SAID TO CONTINUE ILLICIT FOREIGN OUTLAYS CONCERNING THE RICHARD HEI MATTER THE CONDUCT WAS OLD IN 1988 TELEDYNE DISCOVERED IT AND STOPPED IT AT TELEDYNE'S INITIATIVE NOT IN RESPONSE TO FEDERAL ACTION AS YOU STATED EMPLOYEES WERE DISCIPLINED AND DISCLOSURE WAS MADE TO THE US GOVERNMENT IN 1993 NEARLY FIVE YEARS AFTER MR HEI'S SERVICES WERE TERMINATED TELEDYNE RESOLVED THIS MATTER WITH THE JUSTICE DEPARTMENT IN RESOLVING THE HEI MATTER TELEDYNE DID NOT PLEAD TO NOR WERE THERE ALLEGATIONS OF BRIBERY OR IMPROPER INFLUENCE OF TAIWANESE OFFICIALS NEVERTHELESS YOU CHARACTERIZED PAYMENTS TO MR HEI AS ILLICIT YOU ALSO CITE MATERIAL FROM A SEALED FEDERAL CIVIL SUIT THE CONTENTS OF WHICH APPARENTLY HAVE BEEN SELECTIVELY DISSEMINATED TO YOUR REPORTER BUT DENIED TO TELEDYNE ACCORDING TO YOU THE SUIT CONCERNS TELEDYNE'S RELATIONSHIP WITH A RETIRED EGYPTIAN GENERAL WE HAVE NO BASIS ON WHICH TO RESPOND TO SELECTIVELY LEAKED ALLEGATIONS WE HAVE NOT SEEN I AND MY MANAGEMENT TEAM CONTINUE TO WORK HARD TO RESOLVE ISSUES ARISING FROM OLD CONDUCT AND TO HAVE TELEDYNE KNOWN FOR THE INTEGRITY OF ALL OF ITS ACTIVITIES 9312070031 931207 TECHNOLOGY BRIEF AMERICAN TELEPHONE & TELEGRAPH SIZE BREAKTHROUGH ACHIEVED IN MINUSCULE SILICON CHIPS AMERICAN TELEPHONE & TELEGRAPH CO SCIENTISTS SAID THEY DEVELOPED MINUSCULE SEMICONDUCTOR CHIP CIRCUITS THAT CAN OPERATE AT ROOM TEMPERATURE MAKING POSSIBLE MUCH SMALLER TELECOMMUNICATIONS EQUIPMENT MANY RESEARCHERS HAVE BELIEVED THAT SILICON CHIPS WITH FEATURES WHOSE COMPONENTS ARE ABOUT 01 MICRON IN SIZE A THOUSAND TIMES SMALLER THAN THE WIDTH OF A HUMAN HAIR CAN'T WORK UNLESS THEY CAN BE COOLED TO REMOVE HEAT COOLING MECHANISMS ADD BULK HOWEVER BUT RESEARCHERS AT AT&T'S BELL LABORATORIES SAID THE NEW EXPERIMENTAL HIGHSPEED DEVICES USE A TECHNIQUE THAT ELIMINATES LEAKAGE OF CURRENT AND THE RESULTING NEED TO BE COOLED SMALLER SIZE AND BETTER POWER CONSUMPTION MAKE CHIPS FASTER AND MORE PORTABLE A BIG PLUS IN THE EMERGING WORLD OF BATTERYOPERATED PERSONAL TELECOMMUNICATIONS SAID RANHONG YAN WHO LED THE TEAM THAT PRODUCED THE BELL LABS DEVICE 9312070030 931207 WILLIAMSONDICKIE PACT IN JAPAN FORT WORTH TEXAS WILLIAMSONDICKIE MANUFACTURING CO SAID THAT ITOCHU CORP A DIVERSIFIED TOKYOBASED HOLDING COMPANY AGREED TO DISTRIBUTE ITS CLOTHING PRODUCTS IN JAPAN BEGINNING IN 1994 CLOSELY HELD WILLIAMSONDICKIE WHOSE LINE OF WORK WEAR HAS BECOME SOMETHING OF A FASHION TREND AMONG YOUNGER US CONSUMERS ESTIMATED THAT THE PACT WOULD INITIALLY BRING IN AS MUCH AS AN ADDITIONAL 40 MILLION IN ANNUAL REVENUE THE COMPANY HAD ABOUT 425 MILLION IN REVENUE LAST YEAR A SPOKESMAN SAID 9312070029 931207 BUSINESS WORLD CONVERTING CALIFORNIA IN SPITE OF AID BY TIM W FERGUSON THE PLUMP FELLOW WITH THE WHITE HAIRS FLEW INTO LOS ANGELES ON ONE OF HIS REGULAR GIFTSPREADING ROUNDS THIS PAST WEEKEND IT WASN'T QUITE CHRISTMAS BUT SANTA CLAUS CLINTON WAS OFFERING WHAT HE COULD FROM HIS BAG OF PROGRAMS WHAT CALIFORNIA POLITICIANS WANT MOST THIS YEAR IS DEFENSECONVERSION MONEY THAT IS THE 195 BILLION NATIONAL SUGARPLUM DESIGNED TO MAKE ENTREPRENEURIAL BUSINESS PEOPLE OUT OF FOLKS USED TO WORKING TO GOVERNMENT SPECS IN LA THE PRESIDENT SPOTLIGHTED A 26 MILLION GRANT TO ROCKWELL INTERNATIONAL TO COME UP WITH A GIZMO FOR IDENTIFYING HAZARDOUS MATERIALS FROM FAR OFF HIS OPPOSITION IN WASHINGTON SHOULD BE PERFECTING A SIMILAR DEVICE FOR DISCERNING CLINTON TAX INCREASES AT LONG RANGE ENVIRONMENTAL TECHNOLOGY IS ONE OF CALIFORNIA'S BEST PROSPECTS OTHER FEDERAL FUNDS ARE AIMED AT REVVING UP ALTERNATIVES TO THE GASOLINEPOWERED AUTO BILLIONS CONTINUE TO POUR DOWN THE MASSTRANSIT DRAIN BUT THE GREATEST FASCINATION IS WITH THE ELECTRIC CAR IT CONTINUES TO ATTRACT ARMCHAIR INDUSTRIALISTS IF NOT DETROIT EVEN AS THE PRICE OF PETROL DROPS FASTER THAN SCIENTISTS CAN IMPROVE ON THE COST OF BATTERIES THE ELECTRIC CAR MAY BE THE REGION'S RIDE TO NOWHERE THE ONLY PLAYERS THAT SEEM TO WANT TO GET INTO IT ARE THOSE THAT WANT TO GET SUBSIDIES AND WOULDN'T SURVIVE FOR 10 MINUTES WITHOUT THEM SAYS DAVID FRIEDMAN WHO IS RESEARCHING THE AREA'S THOUSANDS OF LESSVISIBLE GROWTH COMPANIES IN A PROJECT SPONSORED BY AT&T AND THE CITY OF LOS ANGELES MR FRIEDMAN ALSO ACTIVE IN THE DEMOCRATIC LEADERSHIP COUNCIL FOLLOWED PRESIDENT CLINTON TO THE ROSTRUM AT THAT GROUP'S MEETING IN WASHINGTON LAST WEEK WITH CRITICISM OF THE WHITE HOUSE'S APPROACH TO RESTARTING THE CALIFORNIA ECONOMY HE SAYS IT FOCUSES TOO HEAVILY ON DEFENSEINDUSTRY DINOSAURS AND THEIR OBSOLESCENT UNION WORK FORCES THE ENTIRE LOCAL CONTRACTOR BASE ISN'T WAITING ON A FEDERAL BAILOUT WHILE A HALVING OF MILITARY MONEYS OVER A DECADE BEGINNING IN 1988 HAS AN UNDENIABLY ENERVATING EFFECT THE WILY SURVIVE YOU USUALLY HAVE TO LOOK WELL BELOW THE LEVEL OF THE MAJOR PENTAGON CONTRACTORS TO FIND THE SUCCESS STORIES TAKE A SMALL OPERATION CALLED ROTARY TECHNOLOGIES IN GARDENA NEAR SOUTH CENTRAL LA DONALD NORBERG A FORMER IBM SALESMAN TOOK THE COMPANY OUT OF BANKRUPTCY IN 1984 AND YES SLIMMED ITS PAYROLL DOWN TO FIVE BUT SALES ARE BACK TO 12 MILLION AND THOSE JOBS HE'S KEPT ARE GOOD ONES 18 AN HOUR FOR INSTANCE FOR A MACHINIST WHO BARELY SPEAKS ENGLISH ROTARY TECHNOLOGIES USED LICENSES FROM LOCKHEED TO DEVELOP PATENTED CUTTING MECHANISMS CAPABLE OF MILLING SURFACES DOWN TO TOLERANCES THAT WERE ONCE THE NEARLY EXCLUSIVE DOMAIN OF MILITARY AIRCRAFT NOW THESE SPECS ARE BEING DEMANDED BY QUALITYCONSCIOUS AUTOMAKERS FOR THEIR ENGINE BLOCKS MR NORBERG NOTES THAT LEAKS FROM UNDER THE HOOD ARE THE MOST FREQUENT WARRANTY COMPLAINTS THAT DETROIT GETS ON ITS NEW PRODUCTS HAVING PARTS BUTT CLEANLY AGAINST GASKETS IS THE WAY TO KEEP GREASE STAINS OFF THE DRIVEWAY WITH HIS ROTARY CARTRIDGE MR NORBERG SAYS CARMAKERS CAN ENJOY THAT PRECISION SPEED UP THEIR PRODUCTION LINES AND EXTEND THE LIVES OF THEIR CUTTING APPARATUS AND LA'S THE PLACE TO MANUFACTURE SUCH A THING WITH ITS WEALTH OF JOB SHOPS WE'RE BLESSED WITH SUPERB AEROSPACE SUBCONTRACTORS IN THIS AREA THESE GUYS ARE USED TO OUR TOLERANCES IF HE CAN GEAR UP MARKETING PERHAPS THROUGH AN ALLIANCE WITH A BIGGER NAME IN MILLING HE HOPES ROTARY'S INNOVATION WILL TAKE OFF THERE'S AN INTERNATIONAL TWIST TO THE STORY MR NORBERG SEES CONTINUED MOVEMENT OF ENGINEBLOCK PRODUCTION A HUGE AND DIRTY PROCESS LOTS OF METAL SHAVINGS AND DUST TO MEXICO UNTIL NAFTA ROTARY TECHNOLOGIES FACED A 20 TARIFF DIFFERENTIAL STEMMING FROM THE TUNGSTEN USED IN ITS PRODUCT SCORE ONE FOR BILL CLINTON ON THAT FRONT BUT MR NORBERG IS LESS ENAMORED OF THE CONVERSIONTECHNOLOGY PROGRAM WHICH HE SAYS OVERLOOKS THE STRIDES BEING MADE IN THE GRAY IRON BUSINESS HE RECALLS THE CRAP WE HAD TO GO THROUGH TO GET A 25000 RESEARCH GRANT AND 25000 DOESN'T GO VERY FAR IN THIS BUSINESS FORGET THE SUBSIDIES FOR FUTURISTIC CONCEPTS MR NORBERG SUGGESTS AND RECOGNIZE WHAT WORKS IN BASIC INDUSTRIES AT THE GROUND LEVEL HE POINTS TO FADAL ENGINEERING CO THE SAN FERNANDO VALLEYBASED MAKER OF MACHINE TOOLS FOR SMALL MANUFACTURERS THIS WAS AN INDUSTRY THE JAPANESE MINISTRY MITI SAID THEY WERE TAKING OVER AND FADAL IS CLEANING THEIR CLOCK BY EVERYBODY HE MEANS THE PRACTITIONERS OF INDUSTRIAL POLICY OR MANAGED TRADE OR TECHNOLOGIES OF TOMORROW OR WHATEVER TERM STATIST STEERING GOES BY NOW HE IS ONE GUY WITH A FEW TALENTED ASSOCIATES IN A SMALL SHOP WHO REPRESENTS THE KIND OF BOTTOMUP RESPONSE TO A CHANGED WORLD THAT EVENTUALLY WILL HELP TO LEAD CALIFORNIA BACK TO THE FOREFRONT OF THE NEW AMERICAN ECONOMY WHEN THAT DAY COMES TODAY'S FASHIONABLE SCHEMES SUCH AS THE ELECTRIC CAR ARE LIKELY TO BE LUMBERING ALONG AT THE PACE OF A CLINTON JOG WE CAN ONLY HOPE THEIR PRICE TAG HAS NOT REACHED PENTAGON PROPORTIONS BY THEN 9312070028 931207 BUSINESS BRIEF AIR PRODUCTS & CHEMICALS INC SUPPLIER OF INDUSTRIAL GASES EQUIPMENT TO BUILD 2 PLANTS AIR PRODUCTS & CHEMICALS INC SAID IT SIGNED TWO AGREEMENTS TO BUILD ONSITE STEAM REFORMING PLANTS TO SUPPLY HYDROGEN TO SHELL OIL CO'S AND ULTRAMAR INC'S CLEAN FUELS PROJECTS THE ALLENTOWN PA SUPPLIER OF INDUSTRIAL GASES AND RELATED EQUIPMENT SAID IT WILL OWN AND OPERATE THE PLANT THAT WILL SUPPLY HYDROGEN TO SHELL'S MARTINEZ CALIF REFINERY UNDER A LONGTERM SUPPLY CONTRACT THE PLANT WILL PROVIDE 90 MILLION STANDARD CUBIC FEET PER DAY OF HYDROGEN SHELL IS A UNIT OF ROYAL DUTCH/SHELL GROUP AIR PRODUCTS SAID IT WILL OPERATE THE PLANNED STEAMREFORMING PLANT ADJACENT TO ULTRAMAR'S WILMINGTON CALIF REFINERY UNDER A LONGTERM SUPPLY CONTRACT THE PLANT WILL SUPPLY 50 MILLION STANDARD CUBIC FEET A DAY OF HYDROGEN THE FACILITIES ALONG WITH A HYDROGEN PLANT UNDER CONSTRUCTION AT TOSCO CORP'S AVON CALIF REFINERY REPRESENT A CAPITAL INVESTMENT BY AIR PRODUCTS OF MORE THAN 150 MILLION 9312070027 931207 BUSINESS BRIEF ALLERGAN INC JUDGE DISMISSES CLASS ACTION AGAINST THERAPEUTICS MAKER THERAPEUTIC PRODUCTS MAKER ALLERGAN INC IRVINE CALIF SAID A FEDERAL JUDGE IN LOS ANGELES DISMISSED CLASSACTION LITIGATION AGAINST THE COMPANY STEMMING FROM ITS 1989 SPINOFF FROM A PREDECESSOR OF SMITHKLINE BEECHAM PLC THE LITIGATION WHICH CONSOLIDATED LAWSUITS FILED FOUR YEARS AGO IN PHILADELPHIA AND LOS ANGELES CLAIMED THAT ALLERGAN AND ITS FORMER PARENT SMITHKLINE BECKMAN CORP OMITTED MATERIAL FACTS AND MADE OTHER MISLEADING STATEMENTS ABOUT ALLERGAN AND ITS FUTURE PROSPECTS ALLERGAN WAS SPUN OFF FROM SMITHKLINE BECKMAN A PHILADELPHIA PHARMACEUTICAL COMPANY IN JULY 1989 WHEN SMITHKLINE MERGED WITH BEECHAM PLC A LONDONBASED PHARMACEUTICALS CONCERN WE MAINTAINED FROM THE OUTSET THAT THESE ALLEGATIONS WERE UNFOUNDED SAID WILLIAM C SHEPARD ALLERGAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SMITHKLINE BEECHAM HAD BEEN PREVIOUSLY DISMISSED FROM THE LITIGATION AN ATTORNEY FOR THE PLAINTIFFS COULDN'T BE REACHED FOR COMMENT ON THE DECISION JUDGE ALICEMARIE H STOTLER WHO DISMISSED THE SUIT AGAINST ALLERGAN ALSO ORDERED THE PLAINTIFFS TO PAY COURT COSTS IN AN AMOUNT THAT HASN'T YET BEEN DETERMINED THE ALLERGAN SPOKESMAN SAID 9312070026 931207 INTERNATIONAL BRIEF KONINKLIJKE AHOLD NV FOOD RETAILER'S 9MONTH NET ROSE 11 AS SALES GREW 28 DUTCH FOODS RETAILING GROUP KONINKLIJKE AHOLD NV SAID NET PROFIT IN THE FIRST NINE MONTHS OF 1993 ROSE 11 FROM A YEAR EARLIER SALES GREW 28 BUOYED BY FIRSTTIME CONSOLIDATIONS AND A STRONGER DOLLAR AHOLD BASED IN ZAANDAM SAID PROFIT INCREASED TO 2453 MILLION GUILDERS 1271 MILLION FROM 2202 MILLION GUILDERS SALES ROSE TO 2049 BILLION GUILDERS FROM 1599 BILLION GUILDERS THE COMPANY'S GLOBAL OPERATING BASE GREW WITH THE ACQUISITION OF A LARGE CHUNK OF THE PORTUGUESE SUPERMARKET SECTOR IT OWNS VIA ITS JMR JOINT VENTURE AHOLD'S WORLDWIDE SALES FROM ALL OPERATIONS WERE UP 28 TO 2049 BILLION GUILDERS FROM 1599 BILLION GUILDERS AHOLD REITERATED THAT IT EXPECTS 1993 NET EARNINGS TO RISE FROM A YEAR EARLIER PERSHARE EARNINGS FOR THE NINE MONTHS WERE 211 GUILDERS DOWN 04 FROM 212 GUILDERS WHILE SHARES OUTSTANDING INCREASED TO 1162 MILLION OR 13 FROM 1025 MILLION 9312070025 931207 MARKETING BRIEF INTERNATIONAL FAMILY ENTERTAINMENT TALKS HELD ON POSSIBLE BOOST IN BID FOR NOSTALGIA NETWORK INTERNATIONAL FAMILY ENTERTAINMENT INC SAID IT IS IN TALKS WITH NOSTALGIA NETWORK INC ABOUT BOOSTING ITS BID FOR THE LOS ANGELES CABLE COMPANY INTERNATIONAL FAMILY THE MEDIA COMPANY FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON LAST MONTH LAUNCHED A 296 MILLION TENDER OFFER FOR NOSTALGIA A BASICCABLE CHANNEL WITH PROGRAMMING AIMED AT VIEWERS 45 YEARS OLD AND OVER INTERNATIONAL FAMILY VIRGINIA BEACH VA SAID IT DISCUSSING WITH A SPECIAL COMMITTEE OF NOSTALGIA'S BOARD THE POSSIBILITY OF BOOSTING ITS BID TO 3 FOR EACH COMMON SHARE AND 300 FOR EACH PREFERRED SHARE OR A TOTAL OF 44 MILLION THE REVISED OFFER DEPENDS ON WHETHER NOSTALGIA IS WILLING TO COMPLETE DUE DILIGENCE OF ITS FINANCIAL RECORDS AND PREVENT CONCEPT COMMUNICATIONS INC FROM ACQUIRING A CONTROLLING STAKE IN NOSTALGIA AN INTERNATIONAL FAMILY SPOKESMAN SAID CONCEPT COMMUNICATIONS AN AFFILIATE OF THE UNIFICATION CHURCH HAD AN ESTIMATED 29 STAKE IN NOSTALGIA BEFORE RECENT STOCK PURCHASES LATE LAST MONTH CONCEPT SAID IT WAS SUSPENDING FURTHER PURCHASES INTERNATIONAL FAMILY OWNS THE FAMILY CHANNEL CABLE NETWORK 9312070024 931207 LETTERS TO THE EDITOR A ONEWOMAN ARMY FUNDED BY THE STATE I WAS INITIALLY HEARTENED TO READ YOUR ACCOUNT OF MARY LOU HOLTE THE SCRAPPY LOS ANGELES RESIDENT WAGING A ONEWOMAN WAR AGAINST CRIME PAGE ONE OCT 22 IT IS UNQUESTIONABLY THE CASE THAT MORE SUCH CITIZEN AWARENESS AND INVOLVEMENT IS GREATLY NEEDED HOWEVER YOU GLOSSED OVER AN IMPORTANT SUBTEXT WITH THE NOTATION THAT SHE LIVES ON STATE DISABILITY PAYMENTS DUE TO A CONGENITAL LUNG DEFECT AND YET DESPITE HER IMPAIRMENT SHE ENGAGES IN EXTENSIVE GRASSROOTS COMMUNITY ACTIVITIES OPERATES WHAT IS IN ESSENCE A ONEWOMAN DETECTIVE SERVICE AND EVEN RAN AFTER A COUPLE OF SUSPECTS IN A SHOOTING I FIND IT INTERESTING AMUSING AND TROUBLESOME THAT AN INDIVIDUAL OF SUCH IMMENSE TALENT AND RESOURCEFULNESS IS PRESUMED UNABLE TO UNDERTAKE GAINFUL EMPLOYMENT IN THIS INSTANCE IT APPEARS MS HOLTE HAS MADE HERSELF USEFUL IN OTHER WAYS THOUGH ONE MIGHT QUESTION THE APPROPRIATENESS OF BESTOWING CIVIC AWARDS ON SOMEONE WHO HAPPENED TO HAVE DECIDED TO EARN HER KEEP IN SOME MANNER AFTER ALL THE REAL PROBLEM LIES IN THE UNTOLD NUMBERS OF MALINGERERS SIMILARLY ENSCONCED ON THE PUBLIC DOLE FEW BOTHER TO DISCOVER WORTHY CAUSES TO OCCUPY THEIR TIME AND MANY NO DOUBT WIND UP ON THE RECEIVING END OF MS HOLTE'S SERVICES IT IS UNFORTUNATE THAT NO ONE IN MS HOLTE'S POSITION OF STATEFUNDED LEISURE IS LIKELY TO UNDERTAKE AN INVESTIGATION OF THE INCOMPETENT ADMINISTRATION OF CALIFORNIA'S WELFARE BUREAUCRACY THEREIN LIES THE SOURCE OF MORE DAMAGE TO THE STATE'S WELLBEING THAN ANYTHING THAT TAKES PLACE ON THE STREETS 9312070023 931207 LETTERS TO THE EDITOR HILLARY SHOULDN'T SNAP AT THOSE WHO DISAGREE HILLARY CLINTON'S INTEMPERATE OUTBURST AGAINST THE HEALTH INSURANCE INDUSTRY IN RECENT MONTHS SIMPLY BECAUSE OF ITS EFFORTS TO EXPOSE THE FLAWS IN THE CLINTON'S HEALTH PLAN WAS INAPPROPRIATE AND INDEFENSIBLE TO CHARGE THAT THE HEALTH INSURANCE INDUSTRY HAS BROUGHT US TO THE BRINK OF BANKRUPTCY IS HYSTERICAL AND ABSURD THIS SORT OF ROUGHANDTUMBLE TEDDY KENNEDYSTYLE RHETORIC SHOWS LITTLE APPRECIATION FOR THE DIGNITY OF HER HUSBAND'S OFFICE AND SURELY TRANSCENDS THE LIMITS OF MATURE AND RESPONSIBLE POLITICAL DEBATE EVEN ASSUMING THAT THE PRESIDENT'S WIFE IS AN APPROPRIATE PARTICIPANT IN SUCH GIVEANDTAKE IN THE FIRST PLACE THE CLINTON HEALTH PLAN WHAT THEY HAVE SO FAR PERMITTED US TO KNOW OF IT IS A DUBIOUS REMEDY BASED ON EVEN MORE DUBIOUS FIGURES FOR THE CRISIS THE CLINTONS INVENTED AS A JUSTIFICATION FOR IT SOME OF THOSE REMEDIES ARE OF SPECIAL AND GRAVE CONCERN TO THE ELDERLY OF WHICH I AM ONE ABRIDGING AS THEY DO OUR RIGHT TO ELECT THE MEDICAL CARE WE NEED AND ARE WILLING TO PAY FOR AT THE AGE WHEN WE ARE MOST LIKELY TO NEED SUCH CARE MRS CLINTON SHOULD UNDERSTAND THAT HER PLAN IS A LEGITIMATE SUBJECT OF DEBATE AND THAT HONEST DISAGREEMENT WITH HER IS NEITHER WICKED NOR PERVERSE CERTAINLY IT DOES NOT DESERVE THE ANGRY AND ARROGANT ATTACK THAT SHE INDULGED IN 9312070022 931207 WHAT'S NEWS BUSINESS AND FINANCE MELLON BANK AGREED TO ACQUIRE DREYFUS IN A STOCK SWAP VALUED AT 17 BILLION IN A BOLD MOVE TO GRAB A BIG CHUNK OF THE MUTUALFUND MARKET THE ACQUISITION THE BIGGEST EVER OF A MUTUALFUND COMPANY WILL GIVE MELLON THE LARGEST MUTUALFUND BUSINESS OWNED BY ANY BANK AND MESH DREYFUS'S LUCRATIVE PORTFOLIO OF MUTUAL FUNDS WITH THE BANK'S VAST PROCESSING CAPABILITIES AND CUSTOMER BASE US AND EUROPEAN COMMUNITY NEGOTIATORS STRUGGLED TO REACH A DEAL THAT WOULD STRENGTHEN THE CHANCES FOR A GLOBAL TRADE PACT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH IS UNDER A DEADLINE ONLY NINE DAYS AWAY THE TWO SIDES DID REPORT PROGRESS IN RESOLVING FARM ISSUES COMPANIES WORLDWIDE ARE HOPING TO GAIN A COMPETITIVE EDGE FROM A SUCCESSFUL NEGOTIATION OF A GATT ACCORD SOME SMALL BUSINESSES HAVE EVEN MORE RIDING ON THE TALKS THAN MULTINATIONALS STILL AN ACCORD WOULD BE NARROWER THAN ONCE HOPED FOR AND WOULD CREATE LOSERS AS WELL AS WINNERS AMERITECH COULD BECOME THE FIRST BABY BELL TO ENTER THE 60 BILLION LONGDISTANCE MARKET DOMINATED BY AT&T AMERITECH THIS WEEK IS EXPECTED TO ASK THE JUSTICE DEPARTMENT FOR PERMISSION TO START A TEST BY 1995 IN ILLINOIS THE WHITE HOUSE IS PREPARING TO UNVEIL AN INITIATIVE TO STIMULATE DOMESTIC ENERGY PRODUCTION BUT ALSO IS CONSIDERING CHARGING MAJOR CALIFORNIA OIL PRODUCERS 422 MILLION FOR ALLEGEDLY UNPAID ROYALTIES DATING BACK TO 1960 OIL PRICES TUMBLED AS THE MARKET CONTINUED TO ABSORB THE REALIZATION THAT OPEC IS UNLIKELY TO TAKE ANY ACTION TO PROP UP OIL PRICES BOND PRICES JUMPED AND THE DOW JONES INDUSTRIAL AVERAGE CLOSED JUST SHORT OF A RECORD THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED ONE POINT ITS YIELD FELL TO 616 INTEL'S STOCK DROPPED 63 AND MOTOROLA'S FELL 21 AFTER MERRILL LYNCH DOWNGRADED BOTH CHIP MAKERS TO NEARTERM NEUTRAL FROM BUY TOKYO SHARES PLUNGED 36 MONDAY ON DISAPPOINTMENT ABOUT THE JAPANESE GOVERNMENT'S FALTERING COMMITMENT TO ACT QUICKLY ON ITS RECESSION FORMER FED GOVERNOR MARTHA SEGER PAID 5000 TO SETTLE FEDERAL CHARGES THAT FIVE MONTHS AFTER RESIGNING SHE ARRANGED AND ATTENDED A MEETING AT THE FED FOR KROGER EXECUTIVES UNHAPPY ABOUT A PROPOSED RULE MOHAWK INDUSTRIES AGREED TO ACQUIRE ALADDIN MILLS IN A STOCK TRANSACTION VALUED AT ABOUT 4306 MILLION BROKERAGE FIRMS ARE TAKING MEASURES TO CLEAN UP THEIR IMAGES AND PRACTICES AMID LAWSUITS AND UNPRECEDENTED LEVELS OF CONSUMER CONTEMPT THE SUPREME COURT AGREED TO DECIDE WHETHER STATES MAY IMPOSE HIGHER TAXES ON GOODS FROM OUTSIDE THE STATE THAN ON INSTATE PURCHASES KODAK'S VICE PRESIDENT AND GENERAL MANAGER OF THE PROFESSIONAL PRINTING AND PUBLISHING IMAGING DIVISION RESIGNED TO BECOME CEO OF WH BRADY A COMPANY THAT IS ONETENTH THE SIZE OF THE DIVISION SHE HEADED AT KODAK GOLDMAN SACHS PARTNERS STAND TO RECEIVE 5 MILLIONPLUS BONUSES FOR 1993 A HEFTY YEAREND PAYCHECK THAT AUGURS WELL FOR OTHERS ON WALL STREET BONDS LEHMAN BROTHERS TREASURY INDEX 558683 UP 4324 COMMODITIES OIL 1457 A BARREL OFF 40 CENTS DOW JONES FUTURES INDEX 13712 OFF 086 SPOT INDEX 12422 UP 055 DOLLAR 10790 YEN OFF 055 17015 MARKS OFF 00185 9312070021 931207 MELLON TO BUY DREYFUS FOR 17 BILLION BY WALL STREET JOURNAL REPORTERS GABRIELLA STERN IN PITTSBURGH AND ROBERT MCGOUGH AND SARA CALIAN IN NEW YORK MELLON BANK CORP MOVING BOLDLY TO GRAB A BIG CHUNK OF THE MUTUALFUND MARKET AGREED TO ACQUIRE DREYFUS CORP IN A STOCK SWAP VALUED AT 17 BILLION THE ACQUISITION THE BIGGEST EVER OF A MUTUALFUND COMPANY WILL GIVE MELLON THE LARGEST MUTUALFUND BUSINESS OWNED BY ANY BANK AND MESH DREYFUS'S LUCRATIVE PORTFOLIO OF MUTUAL FUNDS WITH THE PITTSBURGH BANK'S VAST PROCESSING CAPABILITIES AND CUSTOMER BASE THE COMBINED ENTITY WILL MANAGE 215 BILLION IN ASSETS INCLUDING 84 BILLION IN MUTUALFUND ASSETS MELLON'S STOCK PLUMMETED NEARLY 8 ON THE NEWS AS INVESTORS EXPRESSED SKEPTICISM ABOUT THE BANK'S ABILITY TO ABSORB TWO BIG ACQUISITIONS IN A RELATIVELY BRIEF PERIOD EARLIER THIS YEAR MELLON ACQUIRED BOSTON CO FROM AMERICAN EXPRESS CO FOR 145 BILLION THOSE ARE TWO BIG GULPS FOR A COMPANY WITH A CURRENT STOCK MARKET VALUE OF ONLY 33 BILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MELLON FELL 4375 FROM FRIDAY'S CLOSE TO 53 A SHARE DREYFUS ROSE 4 OR 1875 TO 46375 MANY INVESTORS APPARENTLY FEEL MELLON MAY BE GETTING IN OVER ITS HEAD THIS COMPANY JUST DOESN'T LEARN COMPLAINED NANCY A BUSH AN ANALYST WITH BROWN BROTHERS HARRIMAN WHO LOWERED HER RATING ON MELLON'S STOCK TO MAY SELL FROM NEUTRAL MS BUSH WHO WAS AMONG SEVERAL ANALYSTS WHO LOWERED THEIR RATINGS SAID DREYFUS REPRESENTS ONE DEAL TOO MANY MELLON'S BID HAS A LARGER INDICATED VALUE THAN THE 913 MILLION ACQUISITION LAST YEAR OF TEMPLETON FUNDS BY FRANKLIN RESOURCES HOWEVER THE BANK IS BUYING DREYFUS AT A LOWER PERCENTAGE OF ASSETS UNDER MANAGEMENT THAN MANY PUBLICLY TRADED MUTUALFUND GROUPS COMMAND IN THE MARKET THE LOWER PRICE PARTLY REFLECTS THE FACT THAT MONEYMARKET FUNDS WHICH ARE BARELY PROFITABLE TO INVESTMENT MANAGERS MAKE UP 55 OF DREYFUS'S 80 BILLION IN ASSETS IT'S A VERY LOW PRICE WITHOUT QUESTION SAID STEVEN EISMAN AN ANALYST WITH OPPENHEIMER & CO WHO SAYS DREYFUS SHOULD BE SOLD FOR 55 A SHARE INDEED BECAUSE OF THE LOW OFFER ARBITRAGE INVESTORS WHO MAKE BIG STOCK BETS BASED ON MERGERS SAY THERE IS A GOOD CHANCE OF A COUNTEROFFER THAT COULD FORCE MELLON TO SWEETEN ITS BID I HAVE NEVER SEEN ON A FIRST DAY OF A DEAL ANNOUNCEMENT SUCH A LOW SPREAD LIKE THIS 28 CENTS BETWEEN THE TWO STOCK PRICES SAID THOMAS HANLEY A BANK ANALYST AT CS FIRST BOSTON THIS STOCK IS TRADING AS IF ANOTHER BANK IS GOING TO COME IN HERE AND MAKE ANOTHER BID THAT'S WHAT THE SPREAD IS TELLING YOU MELLON CHAIRMAN FRANK V CAHOUET SAID HE DOESN'T EXPECT ANY OTHER BIDS TO ARISE FOR DREYFUS INVESTMENT BANKERS SAY DREYFUS HAS HAD OTHER UNPUBLICIZED SUITORS IN THE PAST BUT HOSTILE TAKEOVERS OF MUTUALFUND COMPANIES ARE DIFFICULT BECAUSE BUYERS NEED APPROVAL FROM DIRECTORS OF EACH FUND MOREOVER THE BOARDS OF DREYFUS'S 130PLUS MUTUAL FUNDS COULD VOTE TO HIRE AN ENTIRELY DIFFERENT COMPANY TO RUN THE FUNDS REMOVING THE FUNDS' ASSETS FROM ANY HOSTILE BUYER'S GRASP ADDITIONALLY UNDER THE AGREEMENT DREYFUS MUST PAY MELLON A 50 MILLION TERMINATION FEE IF IT SCUTTLES THE DEAL MR CAHOUET ACKNOWLEDGES THAT THE ACQUISITION WILL HALVE MELLON'S RATE OF EARNINGS GROWTH TO 10 FROM 20 A YEAR IN THE FIRST TWO YEARS AFTER IT CLOSES BY THE END OF THE SECOND YEAR IT SHOULD BE NEUTRAL AND IN THE THIRD YEAR IT SHOULD BE POSITIVE I HAVE NO QUESTION IN MY MIND WHATSOEVER ABOUT OUR ABILITY TO ABSORB DREYFUS HE SAID THE MELLONDREYFUS TRANSACTION IS LIKELY TO ACCELERATE CONSOLIDATION OF MUTUALFUND COMPANIES BANKS AND BROKERAGE FIRMS SAYS WILLIAM SHIEBLER A SENIOR MANAGING DIRECTOR AT MARSH & MCLENNAN'S PUTNAM INVESTMENTS YOU'LL SEE BANKS BUYING BROKERAGE FIRMS BROKERAGE FIRMS IN SOME INSTANCES BUYING BANKS AND BOTH OF THOSE INSTITUTIONS BUYING MUTUALFUND COMPANIES BANKS HAVE BEEN HOT TO ENTER THE MUTUALFUND BUSINESS BECAUSE MUTUAL FUNDS HAVE BEEN SIPHONING AWAY BILLIONS OF DOLLARS FROM LOWYIELDING BANK SAVINGS ACCOUNTS HOWEVER IT IS UNLIKELY THAT OTHER BANKMUTUALFUND TRANSACTIONS WILL BE AS LARGE THIS IS A HUGE TRANSACTION I'M NOT SURE BANKS ARE GOING TO GET INTO IT THAT DEEP SAID JOHN B MCCOY CHAIRMAN OF BANC ONE CORP ONE OF A NUMBER OF BIG BANKS EXPECTED TO INCREASE THEIR MUTUALFUND BUSINESS IN COMING YEARS FOR MELLON THE NATION'S 21ST LARGEST BANK THE ACQUISITION WILL PROVIDE SUBSTANTIALLY MORE FEEPRODUCING BUSINESSES THAT CAN BALANCE RISKIER LENDING BUSINESSES ONCE THE DEAL IS COMPLETED ABOUT 52 OF MELLON'S ANNUAL REVENUE WILL COME FROM ACTIVITIES THAT PRODUCE FEES SUCH AS MUTUALFUND MANAGEMENT DREYFUS THE SIXTHLARGEST MUTUALFUND COMPANY HOPES TO CAPITALIZE ON MELLON'S BACKOFFICE TECHNOLOGY STRENGTH PARTICULARLY TO HANDLE THE GROWING 401K TAXFREE SAVINGS BUSINESS HOWEVER THE ACQUISITION WON'T INITIALLY SOLVE NEW YORKBASED DREYFUS'S LACK OF A BROAD ARRAY OF STOCK AND TAXABLEBOND FUNDS IN RECENT YEARS OTHER FUND COMPANIES WITH LARGER FUND SELECTIONS HAVE GAINED GROUND OR PASSED DREYFUS IN SIZE THE AGREEMENT IS THE CULMINATION OF WEEKS OF TALKS BETWEEN THE TWO COMPANIES THAT AT ONE POINT NOV 10 BROKE DOWN OVER SUCH MATTERS AS DREYFUS'S FEAR THAT MELLON WOULD SWOOP IN SLASH COSTS FIRE EMPLOYEES AND STRIP IT OF ITS AUTONOMY FRANK WASN'T SENSITIVE TO SOME OF THE NUANCES AND CULTURES OF A MONEYMANAGEMENT FIRM THE FIRST TIME AROUND SAID A PERSON CLOSE TO THE SITUATION BUT IN THE FOLLOWING WEEKS MR CAHOUET CHANGED TACTICS THE DAY BEFORE THANKSGIVING HE TELEPHONED DREYFUS CHAIRMAN HOWARD STEIN AND LATER FLEW OUT TO SEE HIM AT HIS LAGUNA NIGUEL CALIF HOME THE TWO MEN SPENT LAST WEDNESDAY AT MR STEIN'S CLIFFSIDE HOUSE OVERLOOKING THE OCEAN I SERVED THE COFFEE SAID MR STEIN ADDED MR CAHOUET WE PUT OUR FEET UP ON THE TABLE AND TALKED ABOUT THE FUTURE THEN LAST FRIDAY MR CAHOUET SAID HE MET WITH DREYFUS PRESIDENT JOSEPH S DIMARTINO IN THE NEW YORK AREA TO MAKE SURE THERE WAS THE RIGHT CHEMISTRY BETWEEN THEM SUNDAY THE BOARDS OF BOTH COMPANIES MET TO APPROVE THE DEAL UNDER THE AGREEMENT DREYFUS SHAREHOLDERS WILL RECEIVE 088017 MELLON COMMON SHARES FOR EACH OF THE 366 MILLION DREYFUS SHARES OUTSTANDING BASED ON MELLON'S CLOSING PRICE OF 53 A SHARE THE TRANSACTION TO BE ACCOUNTED FOR AS A POOLING OF INTERESTS HAS AN INDICATED VALUE OF 4665 PER DREYFUS SHARE OF COURSE PEOPLE WHO OWN DREYFUS MUTUAL FUNDS WON'T GET ANY PAYMENTS FROM MELLON IN THE DEAL THEY HAVE TO BE SHAREHOLDERS OF DREYFUS CORP TO GET THE MELLON STOCK KEY TO THE TRANSACTION IS WHAT MELLON WILL DO WITH SOME 718 MILLION IN CASH THAT DREYFUS HAS BANKED MELLON BELIEVES IT CAN GENERATE AN ANNUAL RETURN OF 11 ON THE MONEY AND THUS ALLOW THE TRANSACTION TO BREAK EVEN BY THE END OF THE SECOND YEAR THE CASH HOLDINGS OF DREYFUS REDUCE THE EFFECTIVE PURCHASE PRICE TO MELLON OPPENHEIMER'S MR EISMAN SAID THE TRUE PURCHASE PRICE IS ONLY ABOUT 26 MELLON WILL RECORD A 73 MILLION ONETIME AFTERTAX CHARGE FOR EXPENSES RELATING TO THE TRANSACTION AT THE TIME OF THE DEAL'S CLOSING EXPECTED TO BE IN MID1994 UNDER THE AGREEMENT MESSRS STEIN AND DIMARTINO WILL CONTINUE IN THEIR CURRENT POSITIONS AND BECOME MEMBERS OF MELLON'S BOARD AS WILL EDWARD J MCANIFF A PARTNER IN THE LOS ANGELES FIRM OF O'MELVENY & MYERS 9312070020 931207 TRADING UP FIRMS FAR AND WIDE ARE LOOKING TO GATT FOR COMPETITIVE EDGE BUT IT WOULD CREATE LOSERS AS WELL AS GAINERS AND IT WOULDN'T HELP EAST BLOC MOTHER OF ALL TARIFF CUTS' BY LAWRENCE INGRASSIA AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL IN STOKEONTRENT ENGLAND THE WORLD CAPITAL OF TABLEWARE WORKERS AT DUDSON GROUP'S FACTORY ARE BUSY MOLDING AND FIRING CLAY INTO FINE CHINA FOR CUSTOMERS THE WORLD OVER STACKED HIGH ARE FRUIT BOWLS FOR A CANADIAN RESTAURANT SOUP DISHES FOR ROADSIDE STOPS ON ITALY'S AUTOSTRADA TEACUPS FOR THE BELGIAN RAILWAY DINNER PLATES FOR A SINGAPORE HOTEL SOME ARE HEADED FOR THE US BUT NOT NEARLY AS MANY AS MANAGING DIRECTOR IAN DUDSON WOULD LIKE BECAUSE THE US SLAPS A STIFF 36 TARIFF ON TABLEWARE FOR RESTAURANTS AND HOTELS WE LOSE CONTRACTS IN AMERICA AT THE MOMENT BECAUSE WE ARE 5 OR 10 TOO EXPENSIVE HE NOTES THAT SOON MAY CHANGE IF POLITICIANS NEGOTIATING A NEW WORLDTRADE PACT FINALLY END SEVEN YEARS OF BICKERING AND REACH AN AGREEMENT TARIFFS ON TABLEWARE IMPORTED INTO THE US COULD DROP BY ABOUT ONETHIRD AND THAT IS ONLY ONE OF THE THOUSANDS OF PRODUCTS ON WHICH DUTIES COULD BE CUT BY THE 115 MEMBER COUNTRIES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE OFTEN LOST IN THE JARGON THE MANEUVERING AND THE ENDLESS STREAM OF STATISTICS EMANATING FROM THE GATT TALKS IN GENEVA IS THE FACT THAT A GREAT MANY REAL PEOPLE HAVE A LOT AT STAKE IN THE NEGOTIATIONS IN FACT THE SCOPE OF A GATT ACCORD WOULD DWARF THAT OF THE NORTH AMERICAN FREE TRADE AGREEMENT ASSUMING THE NEGOTIATORS CAN OVERCOME THE LATEST SNAGS THEY HAVE HIT IN THE LONG LONG BARGAINING BUSINESSES AROUND THE GLOBE ARE ANXIOUSLY AWAITING THE OUTCOME MULTINATIONAL MINING COMPANIES IN AUSTRALIA TINY TEXTILE PRODUCERS IN INDIA AND PAKISTAN SHOEMAKERS IN ITALY ELECTRONICS MANUFACTURERS IN MALAYSIA CARTOON PRODUCERS IN JAPAN FURNITURE MAKERS AND BREWERIES AND CHEMICAL COMPANIES IN THE US INDEED SOME SMALL BUSINESSES HAVE EVEN MORE RIDING ON THE TALKS THAN MULTINATIONALS WHICH SOMETIMES CAN DODGE BARRIERS BY SETTING UP UNITS ABROAD THERE'S A GREAT MISIMPRESSION THAT IT'S ONLY THE BIG GUYS INTERESTED IN A WORLD MARKET THAT'S BALONEY SAYS JOE RICHARDSON II HEAD OF A FURNITURE AND WOODPRODUCTS COMPANY IN SHEBOYGAN FALLS WIS THAT HOPES TO EXPAND ITS JAPANESE AND KOREAN SALES AND BEGIN TO SELL IN FRANCE AND GERMANY IN 20 YEARS DOING BUSINESS IN THE WORLD ECONOMY FOR US WILL BE AS ACCEPTED AS DOING BUSINESS IN ST LOUIS AND SAN FRANCISCO IF WE CAN ELIMINATE THE TARIFFS GIVEN THE COMPLEXITIES OF INTERNATIONAL TRADE IT IS IMPOSSIBLE TO MEASURE THE PRECISE BENEFITS OF A GATT AGREEMENT OR ON THE DOWNSIDE FAILURE BY THE DEC 15 NEGOTIATING DEADLINE BUT VARIOUS GROUPS HAVE ESTIMATED AN ACCORD COULD ADD 200 BILLION TO 270 BILLION TO THE WORLD'S ANNUAL ECONOMIC OUTPUT A DECADE FROM NOW EVEN SOME COMPANIES IN FRANCE WHICH HAS OFTEN OBJECTED TO PROPOSED GATT DEALS HAVE SAID A PACT WOULD BE GOOD FOR THEM AND FOR FRANCE OVERALL NOT THAT A GATT AGREEMENT WOULD BE A TRADE PANACEA THE PACT WOULD BE NARROWER THAN WHAT MANY HAD ONCE HOPED FOR DRUG COMPANIES WOULDN'T GET STRONG PATENT PROTECTIONS FOR AT LEAST A DECADE TO KEEP DEVELOPING COUNTRIES FROM COPYING THEIR PRODUCTS WESTERN BANKS WOULDN'T GAIN THE LEEWAY THEY HAD HOPED FOR TO ENTER DEVELOPING COUNTRIES AND THOSE DEVELOPING NATIONS MAY GET SMALLER CUTS THAN SOUGHT IN US TARIFFS ON TEXTILES MOREOVER THE ACCORD WOULD DO LITTLE IF ANYTHING TO HELP COUNTRIES IN THE FORMER SOVIET BLOC BECAUSE THEY AREN'T MEMBERS OF GATT THEY STILL FACE MANY BARRIERS TO TRADE WITH THE WEST MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST LESTER THUROW CONTENDS THAT GATT IS DEBATING BASICALLY TRIVIAL THINGS BACK AND FORTH WHILE IGNORING THE HUGE ISSUE OF HOW TO BRING EASTERN EUROPE INTO THE WORLD ECONOMIC SYSTEM AND THERE WILL BE LOSERS AS WELL WINNERS A MATTER THAT NEGOTIATORS PREFER TO PLAY DOWN FOR EVERY COMPANY THAT PROSPERS BECAUSE IT CAN INCREASE EXPORTS A BUSINESS IN THE COUNTRY THAT CUT TARIFFS IS LIKELY TO SUFFER AS A RESULT IT IS A MATTER OF DEBATE WHETHER A GATT ACCORD WOULD RESULT IN A NET INCREASE IN JOBS HOWEVER BY REDISTRIBUTING JOBS AMONG THE MOST EFFICIENT PRODUCERS OF ALL GOODS GATT WOULD GENERATE HIGHERSKILLED AND HIGHERPAYING JOBS SOME ANALYSTS SAY JOBS SUPPORTED BY EXPORTS PAY 17 MORE IN THE US THAN OTHER JOBS SO THE DECISION TO PROTECT INDUSTRIES THROUGH HIGH TARIFFS AMOUNTS TO PROTECTING LOWSKILL JOBS AT THE EXPENSE OF HIGHSKILL JOBS ARGUES RICHARD BLACKHURST A GATT OFFICIAL MANY COMPANIES DON'T NEED A LESSON IN ECONOMICS TO TELL THEM THAT GATT WOULD BE GOOD FOR THEM FOR DUDSON GROUP A FAMILYOWNED FIRM FOUNDED BY IAN DUDSON'S FOREBEARS IN THE 1800 LOW TARIFFS ARE CRITICAL TO FUTURE GROWTH BECAUSE OF BRITAIN'S SIZE DUDSON HAS LONG LOOKED ABROAD IT NOW EXPORTS ABOUT 55 OF ITS GOODS WHICH ARE MADE TO WITHSTAND RUNS THROUGH COMMERCIAL DISHWASHERS WITH HEAVY DETERGENTS BUT THE US BY FAR THE LARGEST BUYER OF COMMERCIAL TABLEWARE IS ONLY THE THIRDLARGEST CUSTOMER FOR ITS DURALINE UNIT'S PRODUCTS UNTIL ABOUT DECADE AGO WHEN THE AMERICAN TARIFF WAS CLOSE TO 50 DUDSON SOLD LITTLE IN THE US AS THAT TARIFF HAS SLOWLY DECLINED TO THE CURRENT 36 DUDSON'S EXPORTS TO AMERICA HAVE RISEN THEY NOW ACCOUNT FOR ABOUT 3 MILLION OF ITS 27 MILLION IN TOTAL SALES I THINK WE COULD POTENTIALLY INCREASE THAT BY 50 SAYS MR DUDSON SITTING IN A SHOWROOM SURROUNDED BY SAUCERS BOWLS POTS AND GRAVY BOATS IN MANY SHAPES AND COLORS IT WOULDN'T HAPPEN OVERNIGHT BUT WE COULD TARGET A LARGER PART OF THE MARKET WHERE AT THE MOMENT WE CAN'T GET NEAR SOME US MAKERS ON PRICE AND IF DURALINE'S SALES ROSE DUDSON COULD ADD TO ITS WORK FORCE OF 650 IN THIS DEPRESSED AREA IN THE MIDLANDS WHERE MANY JOBS HAVE BEEN LOST AS COAL MINES HAVE CLOSED CALZATURIFICIO FRATELLI ROSSETTI SPA A SHOEMAKER IN PARABIAGO ITALY IS HOPING FOR A REDUCTION IN TARIFFS IN JAPAN WITH A DUTY OF 27 AUSTRALIA 37 AND SOUTH AFRICA 45 INCLUDING A SPECIAL LEVY THE IMPORT DUTIES ARE SO HIGH THEY REALLY MAKE EXPORTING ALMOST IMPOSSIBLE SAYS DIEGO ROSSETTI EXECUTIVE VICE PRESIDENT FRATELLI ROSSETTI'S SHOES ARE EXPENSIVE ITS MEN'S SHOES RETAIL FOR ABOUT 350 AND ITS WOMEN'S SHOES FOR 250 IN THE US WHICH ACCOUNTS FOR ABOUT 10 OF ITS OVERALL SALES OF 70 BILLION LIRE ABOUT 40 MILLION BUT ITS PRICES ARE COMPETITIVE IN THE HIGHEND MARKET THANKS TO THE US'S RELATIVELY LOW DUTIES OF 8 1/2 TO 10 EVEN IF TARIFFS WERE REDUCED TO 20 IN OTHER MARKETS THAT WOULD BE REASONABLE MR ROSSETTI NOTES IF THAT HAPPENED HE FIGURES THE SHOEMAKER WOULD BE ABLE TO LIFT ITS EXPORTS TO 65 OF SALES FROM THE CURRENT 50 IN WISCONSIN MR RICHARDSON CHARTS HIS FURNITURE COMPANY'S GLOBAL GROWTH IN AN OFFICE NOT FAR FROM THE STRIP OF THE MULLET RIVER THAT HIS GREATGREATGRANDFATHER DIVERTED IN 1848 TO START A SAWMILL IT WOULD BE SO NEAT TO GO INTO A RESTAURANT IN EUROPE AND SEE RICHARDSON FURNITURE HE SAYS IT'S EXCITING ENOUGH TO SEE OUR STUFF IN A BAR IN BOSTON GATT WOULD REDUCE EUROPEAN FURNITURE TARIFFS IN MOST CATEGORIES SINCE THE LATE 1980S RICHARDSON BROTHERS CO WHICH HAS 500 EMPLOYEES HAS SOLD SOME FURNITURE TO KOREA AND JAPAN WHERE IT HAS A SALES REPRESENTATIVE BUT RICHARDSON BROTHERS IS LOOKING FOR TARIFF CUTS FROM SCANDINAVIAN NATIONS AND THE EUROPEAN COMMUNITY AFTER THE US FREETRADE AGREEMENT WITH CANADA TOOK EFFECT THE COMPANY'S FURNITURE SALES TO CANADA TRIPLED NOTES MR RICHARDSON CANADA'S 15 TARIFF ON FURNITURE FROM THE US WAS PHASED OUT IN JANUARY THE COMPANY EXPECTS SIMILAR INCREASES AS MEXICO'S 20 TARIFFS ARE REDUCED UNDER NAFTA BOY I TELL YOU WE'LL BE ABLE TO COMPETE REALLY WELL IF THEY GET RID OF THE TARIFFS MR RICHARDSON SAYS IT JUST AMAZES ME HOW WILD PEOPLE ARE FOR AMERICAN PRODUCTS PHILLY BEER JEFF WARE'S DREAM IS TO BUILD A BIRRERIA A BEER RESTAURANT IN ITALY AND SWITZERLAND BUT DOCK STREET BREWING CO'S ONLY FORAY TO EUROPE SO FAR HAS FLOPPED IN 1988 AND 1989 THE PHILADELPHIA BREWER SOLD 1300 CASES OF BEER TO A PARISIAN BUSINESSMAN IN A STORE HE HAD OPENED PITCHING US GOODS TO THE FRENCH THE PROBLEM A 24 TARIFF IN EUROPE THERE WAS A GOOD PUBLIC RESPONSE BUT THE PRICES WERE TOO HIGH SAYS MR WARE PRESIDENT OF DOCK STREET WHOSE AMBER BEER HAS WON TWO GOLD MEDALS FOR TASTE FROM A BELGIUM ORGANIZATION MONDE SELECTION OVER THE PAST TWO YEARS IT WAS REAL DISHEARTENING HE SAYS THE US EXPORTS TO ALL COUNTRIES ONLY SLIGHTLY MORE BEER THAN IT IMPORTS FROM THE NETHERLANDS IN PART BECAUSE THE US IMPOSES A DUTY OF ONLY 13 1/2 CENTS A CASE OR WELL UNDER 2 ON EUROPEAN IMPORTS BUT MR WARE WILL TEST THE WATERS AGAIN IF EUROPE'S TARIFFS ARE REDUCED AS PROPOSED IN THE TRADE TALKS HE AND HIS SICILIANBORN WIFE ROSEMARIE CERTO THE BREWING COMPANY'S MARKETING DIRECTOR TOURED THE ITALIAN SKI RESORT OF CORTINA D'AMPEZZO LAST SPRING TO SCOUT THE MARKET BIG COMPANIES STAND TO BENEFIT AS WELL MIM HOLDINGS LTD A MINING AND METAL COMPANY BASED IN MELBOURNE AUSTRALIA FACES TARIFFS AND OTHER BARRIERS IN BOTH INDUSTRIALIZED AND DEVELOPING COUNTRIES THE TARIFFS OFTEN AROUND 10 TO 12 FOR COPPER ALUMINUM ZINC AND OTHER METALS MAY SOUND REASONABLE BUT THEY ARE DIFFICULT TO OVERCOME IN THE TIGHTMARGIN PRICECOMPETITIVE COMMODITY BUSINESS MOREOVER TARIFFS ARE HIGHER THE MORE REFINED THE PRODUCT IMPORTING COUNTRIES HAVE TARIFFS OR BARRIERS THAT ARE PROPORTIONATE TO THE EXTENT OF ADDED VALUE GRUMBLES MIM SPOKESMAN COLIN MYERS FOR EXAMPLE THE EC IMPOSES A 10 DUTY ON IMPORTED COPPER RODS BUT VIRTUALLY NO DUTY ON RAW COPPER THE AUSTRALIANS FIGURE THAT SOME INEFFICIENT PRODUCERS WOULD BE FORCED OUT OF BUSINESS IF TARIFFS AND SUBSIDIES WERE REDUCED OPENING MARKETS FOR THEM LIKEWISE NALCO CHEMICAL CO NAPERVILLE ILL FIGURES GATT COULD BE A SHOT IN THE ARM BY CUTTING TARIFFS ON WATERTREATMENT PRODUCTS SAYS LARRY GESS DIRECTOR OF WORLD TRADE THE COMPANY PARTICULARLY HOPES FOR REDUCTIONS IN FASTGROWING COUNTRIES SUCH AS INDIA JAPAN SOUTH KOREA INDONESIA AND THAILAND INDONESIA'S TARIFFS ARE ABOUT 60 AND INDIA'S ARE AS HIGH AS 150 THOSE COULD BE REDUCED TO 40 OR 20 IN INDIA AND 65 IN INDONESIA THEY STAND TO BE VERY GOOD CUSTOMERS AS WE GET RID OF THE LIMITATIONS NOTES MR GESS WHO WILL BE LOBBYING IN GENEVA THIS WEEK AND NEXT IF WE HAVE AN AGREEMENT IT'S A TREMENDOUS STEP FOR US FOR ONE THING THE COMPANY SAYS IT WOULD MOST LIKELY AVOID HAVING TO OPEN NEW PRODUCTION FACILITIES IN INDIA DUPLICATING EXISTING PRODUCTION IN THE US AND ITALY IF IT COULD SELL CERTAIN PRODUCTS TO INDIA WITHOUT STEEP TARIFFS IF THEY STAY IN PLACE MR GESS SAYS THE COMPANY WILL PROBABLY EXPAND ITS SMALL PLANT OUTSIDE CALCUTTA TO MEET DEMAND DO WE DO THE SAME THING IN INDIA THAT WE'RE DOING IN THE US AND ITALY HE ASKS WE CAN JUST SHIP FROM HERE WE'D LIKE TO DO THAT BUT DUTIES ALMOST FORCE YOU TO SET UP SHOP THERE JAPAN'S ELECTRONICS COMPANIES ARE AMONG THOSE HOPING TO GAIN FROM TARIFF CUTS IN EUROPE CANADA AND THE US JAPAN ALSO LOOKS TO GAIN FROM THE US CAMPAIGN TO LIMIT EUROPE'S CURBS ON FOREIGN FILMS IT EXPORTS A LOT OF CARTOONS WHICH ARE AFFECTED BY THE EUROPEAN LIMITS EVEN SOME MULTINATIONALS THAT DON'T HAVE A DIRECT STAKE IN THE OUTCOME HAVE A CARE BECAUSE THEY ARE AFFECTED INDIRECTLY SWEDEN'S ERICSSON DOESN'T FACE HIGH TARIFFS ON ITS TELECOMMUNICATIONS PRODUCTS AND SWEDEN IMPOSES ONLY A 2 1/2 TO 5 DUTY ON SEMICONDUCTORS THAT ERICSSON IMPORTS BUT THE COMPANY IS HOPING THAT THE EC AGREES TO CUT ITS CURRENT DUTY OF 14 ON IMPORTED SEMICONDUCTORS THE REASON SWEDEN MAY SOMEDAY JOIN THE EC AND IF IT DOES IT WOULD HAVE TO ABIDE BY EC TARIFFS IT IS VERY IMPORTANT TO HAVE LOWER IMPORT COSTS FOR SEMICONDUCTORS BECAUSE A HIGHER DUTY WOULD AFFECT THE PRICE OF THE PRODUCT WE SELL AROUND THE WORLD EXPLAINS NILS LUNDIN AN ERICSSON SPOKESMAN THE HIGHER DUTY COULD COST ERICSSON SEVERAL HUNDRED MILLION DOLLARS A YEAR HE ESTIMATES BILL LANE WASHINGTON MANAGER FOR INTERNATIONAL ISSUES FOR CATERPILLAR INC CALLS GATT THE EQUIVALENT OF 14 NAFTAS THE PEORIA ILL MANUFACTURER FACES TARIFFS ON ITS TRACTORS BULLDOZERS AND EXCAVATORS OF 4 TO 11 IN THE EC 4 IN JAPAN AND ABOUT 15 IN DEVELOPING COUNTRIES UNDER PLANS NOW BEING DISCUSSED THESE WOULD BE ELIMINATED OVER FIVE YEARS IN A YETTOBEDETERMINED NUMBER OF COUNTRIES SELLING OVERSEAS SINCE 1925 CATERPILLAR LAST YEAR HAD EXPORTS OF 33 BILLION OUT OF TOTAL SALES OF ABOUT 10 BILLION WHEN IT COMES TO TARIFFS GATT IS THE MOTHER OF ALL CUTS SAYS MR LANE THE OPPORTUNITY HERE IS TO USE THE GATT TO ELIMINATE THIS TAX WHICH IS USED TO HINDER EXPORTS BY ELIMINATING THE TARIFF YOU ELIMINATE THE HOMEFIELD ADVANTAGE JACOB M SCHLESINGER IN TOKYO CONTRIBUTED TO THIS ARTICLE 9312070019 931207 HEARD ON THE STREET INTEL OTHER CHIP MAKERS ARE HEADED FOR A FALL OR A GOLDEN AGE DEPENDING ON WHO'S TALKING BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL WHAT IS YOUR OPINION OF INTEL'S STOCK BE CAREFUL YOUR ANSWER MAY PROVOKE AN ARGUMENT WALL STREET IS BICKERING FURIOUSLY OVER THE OUTLOOK FOR CHIP MAKERS SUCH AS INTEL WHOSE STOCK SANK 63 YESTERDAY AFTER MERRILL LYNCH DOWNGRADED BOTH INTEL AND MOTOROLA TO NEARTERM NEUTRAL FROM BUY THE BULLISH CAMP INCLUDES A NUMBER OF NEWER FOLLOWERS OF INTEL ARGUING THAT THE CHIP COMPANIES ARE ON THE VERGE OF A BALMY NEW NONCYCLICAL ERA THESE ANALYSTS ENVISION A SORT OF SEMICONDUCTOR GOLDEN AGE WHERE CHIP COMPANIES WILL GROW BY GREAT LEAPS AS THEY EXPAND INTERNATIONALLY THE OLD GUARD INCLUDING THE MERRILL ANALYST WHO SPARKED YESTERDAY'S SELLOFF TAKES A MORE CONSERVATIVE VIEW RELYING ON THE TRIEDANDTRUE VIEW OF INTEL AS A STOCK THAT RISES AND FALLS WITH ELEMENTS OF THE BROADER BUSINESS CYCLE IF HISTORY IS ANY GUIDE THESE SKEPTICS SAY INTEL AND SEMICONDUCTOR MAKERS AS A WHOLE GOT OVERHEATED AFTER A YEARLONG RALLY THROUGH THE FALL LEAVING THEM POISED FOR A DROP AS INDUSTRY SALES GROWTH NEXT YEAR SLOWS TO ABOUT ONETHIRD THE PACE OF 1993'S IT'S A DEBATE THAT HAS BEEN SWELLING IN RECENT MONTHS YESTERDAY THE OLD GUARD HELD SWAY AS SHARES OF INTEL FELL 4 TO 59 1/2 AFTER MERRILL'S DOWNGRADE MOTOROLA SANK 2 TO 94 1/8 WE'VE BEEN HERE BEFORE SAYS THOMAS KURLAK THE MERRILL ANALYST BASED ON HIS PREDICTION OF FLAT OR LOWER EARNINGS FOR INTEL'S FIRST QUARTER AND AN OVERALL SLOWDOWN IN THE INDUSTRY HE SAYS INTEL'S STOCK IS IN FOR A ROUGH SIX MONTHS OR SO THE IDEA THAT INTEL'S GROWTH MIGHT BEGIN TO SLOW ISN'T A REVOLUTIONARY OPINION ALL YEAR LONG OTHER ANALYSTS HAVE BEEN SAYING THE SAME THING IN APRIL IN FACT INTEL'S STOCK SOLD OFF SHARPLY AFTER A SLEW OF ANALYSTS QUESTIONED THE DURABILITY OF INTEL'S GOOD FORTUNE AS THE DOMINANT PLAYER IN THE SEMICONDUCTOR INDUSTRY INDEED THE EFFECT OF GRAVITY WAS BOUND TO BE FELT BY INTEL SOONER OR LATER THE COMPANY HAS BEEN SPORTING AN AFTERTAX PROFIT MARGIN OF 26 EQUAL TO THE GROSS PRETAX MARGIN OF MANY OF ITS COMPETITORS INTEL'S GROSS MARGINS ARE ABOVE 60 THE STOCK REACTED STRONGLY TO MR KURLAK'S COMMENTS HOWEVER IN PART BECAUSE HE HAS BEEN A TABLEPOUNDING BULL FOR A GOOD WHILE YOU CAN'T OVERSTATE HOW CLOSELY LINKED MR KURLAK IS WITH INTEL SAYS ONE LARGE INVESTOR WHO VIEWS HIM AS HAVING A GOOD PIPELINE INTO THE COMPANY MR KURLAK SAYS HE HAS RECOMMENDED THE STOCK FOR TWO YEARS MR KURLAK SAYS INTEL IS STILL A BUY ON A LONGTERM BASIS IN THE SHORT RUN HOWEVER HE BELIEVES EARNINGS IN THE FIRST QUARTER WILL BE FLAT TO DOWN AS A RESULT OF A BUMP IN THE COMPANY'S PRODUCT CYCLE THE COMPANY'S 486 CHIP WHICH HAS LED ITS STRONG SALES GROWTH LATELY HAS REACHED ITS PEAK IN SALES THIS YEAR SAYS MR KURLAK THE PROBLEM HE SAYS IS THAT SALES OF INTEL'S NEXT PRODUCT THE NEWER FASTER PENTIUM CHIP AREN'T CONTRIBUTING AS MUCH TO THE COMPANY'S BOTTOM LINE AS EXPECTED WHAT'S MORE MR KURLAK SAYS INTEL'S ORDERS HAVE BEGUN TO SOFTEN NOW THAT THE SEASONAL BULGE IN PC PRODUCTION HAS PEAKED OTHER EARLIER PREDICTIONS OF A DROP IN INTEL'S STOCK HAVE FAILED TO TAKE INTO ACCOUNT THE SEASONAL FACTOR AS A RESULT OF HIS ANALYSIS MR KURLAK HAS LOWERED HIS 1994 EARNINGS ESTIMATE TO 6 A SHARE FROM 720 THE STREET'S CONSENSUS IS ABOUT 590 THE NEW SCHOOL WASN'T SILENT YESTERDAY SEVERAL ANALYSTS RUSHED TO REITERATE THEIR BUY RECOMMENDATIONS ON THE STOCK RAJIV CHAUDHRI AN ANALYST AT GOLDMAN SACHS DEFENDED HIS OPINION ON THE STOCK SAYING INTEL WILL HAVE STRONG GROWTH NEXT YEAR ALONG WITH THE REST OF THE INDUSTRY WE WOULD VIEW WEAKNESS IN INTEL AS A BUYING OPPORTUNITY ADDS SHEARSON LEHMAN SEMICONDUCTOR ANALYST MICHAEL GUMPORT KIDDER PEABODY EVEN UPGRADED INTEL TO OUTPERFORM FROM NEUTRAL THE DOW JONES NEWS SERVICE REPORTED YESTERDAY MORNING IT CITED A STRONGERTHANEXPECTED PERSONALCOMPUTER MARKET AND A BELIEF THAT MOST INVESTORS' CONCERNS WERE ALREADY DISCOUNTED IN THE STOCK PRICE AROUND MIDAFTERNOON HAMBRECHT & QUIST JUMPED IN TO UPGRADE INTEL TO BUY FROM HOLD WITH A 25CENT BOOST IN ITS 1994 PROFIT ESTIMATE TO 6 A SHARE THE SAME AS MERRILL'S NEW TARGET OTHER INVESTORS CALLED THE SELLING YESTERDAY OVERDONE INTEL HAS BEEN A VOLATILE STOCK POINTS OUT PUTNAM COS' CHRIS AINLEY WHO FOLLOWS THE COMPANY AS AN ANALYST INVESTORS HAVE DONE WELL TO BUY THE STOCK WHENEVER IT HAS TAKEN A DIP HE SAYS INDEED INTEL HAS TRIPLED IN PRICE IN THE LAST TWO YEARS ALONE THE QUESTION IS WHETHER THIS IS THE LAST TIME IT WILL BOUNCE BACK SAYS MR AINLEY OVER THE SHORT TERM I'M NERVOUS JUST LIKE EVERYONE ELSE BUT LONG TERM I'M BULLISH ABOUT INTEL AND THE REST OF THE INDUSTRY SAYS MR AINLEY 9312070018 931207 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 FLORIDA POWER & LIGHT CO 135 MILLION OF FIRST MORTGAGE BONDS DUE DEC 1 2026 PRICED AS 705S AT 98421 TO YIELD 7175 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 82 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP AND WAS SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS & CO FLORIDA POWER IS A UNIT OF FPL GROUP INC STONECONSOLIDATED CORP 225 MILLION OF SENIOR SECURED NOTES DUE DEC 15 2000 PRICED AT PAR TO YIELD 1025 ACCORDING TO MCM CORPORATEWATCH THE NOTES WERE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC STONECONSOLIDATED IS A UNIT OF STONE CONTAINER CORP CUMMINS ENGINE CO 23 MILLION COMMON SHARES PRICED AT 49 APIECE THROUGH UNDERWRITERS LED BY SG WARBURG & CO FIRST MARYLAND BANCORP 150 MILLION OF NONCUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A 7875 DIVIDEND ACCORDING TO MCM CORPORATEWATCH THE PREFERRED SHARES NONCALLABLE FOR FIVE YEARS WERE SOLD FOR 25 EACH AT PAR AND ARE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FIRST MARYLAND BANCORP IS A UNIT OF ALLIED IRISH BANKS PLC FOAMEX INTERNATIONAL INC INITIAL OFFERING OF 107 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP BATTERY PARK CITY AUTHORITY NY 1407 MILLION SERIES 1993B JUNIOR REVENUEREFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 275 IN 1994 TO 52 IN 2023 BOTH MOODY'S AND S&P HAVE RATED THE BONDS SINGLEA HARRIS COUNTY TEXAS 245 MILLION SERIES 1993 BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE FIVEPART ISSUE INCLUDES 1103 MILLION IN ROAD AND REFUNDING BONDS WHICH ARE PRICED TO YIELD FROM 33 IN 1995 TO 54 IN 2015 902 MILLION IN HARRIS COUNTY FLOOD CONTROL DISTRICT IMPROVEMENT AND REFUNDING BONDS WHICH ARE PRICED TO YIELD FROM 265 IN 1994 TO 54 IN 2014 AND 2015 375 MILLION IN PERMANENTIMPROVEMENT REFUNDING BONDS WHICH ARE PRICED TO YIELD FROM 33 IN 1995 TO 535 IN 2012 37 MILLION IN PREMIUM CAPITALAPPRECIATION BONDS WHICH ARE TO YIELD FROM 535 IN 2006 TO 555 IN 2009 AND 32 MILLION IN PREMIUM CAPITALAPPRECIATION BONDS PRICED TO YIELD FROM 545 IN 2007 TO 565 IN 2011 OVERALL YIELDS RANGE FROM 265 IN 1994 TO 565 IN 2011 MOODY'S HAS RATED THE BONDS DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAPLUS RATING KING COUNTY WASH 2987 MILLION 1993 IMPROVEMENTREFUNDING BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP LEHMAN BROTHERS IS BELIEVED TO HAVE WON THE 1819 MILLION SERIES C UNLIMITEDTAX BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 487 YIELDS FOR REOFFERED BONDS RANGE FROM 31 IN 1995 TO 535 IN 2019 THE 1168 MILLION SERIES B VARIOUSPURPOSE LIMITEDTAX BONDS WERE APPARENTLY WON BY LEHMAN BROTHERS WITH A BID SETTING THE TRUE INTEREST COST AT 5029 YIELDS FOR REOFFERED BONDS RANGE FROM 345 IN 1996 TO 535 IN 2019 AND 2024 SACRAMENTO COUNTY CALIF SANITATION DISTRICTS FINANCING AUTHORITY 2176 MILLION 1993 REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 235 IN 1994 TO 54 IN 2023 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES GOLD 1655 IS BACKED BY FREDDIE MAC GOLD 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 710 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 176 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 800 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1993252 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993G41 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 CERTIFICATES THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 19942 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 195 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993253 IS BACKED BY THE AGENCY'S STRIPPED MORTGAGE BACKED SECURITIES TRUST 251 PRINCIPLEONLY SECURITIES WHICH ARE BACKED IN TURN BY 8 30YEAR MORTGAGEBACKEDSECURITIES CERTIFICATES ALLIANCE & LEICESTER BUILDING SOCIETY UK 150 MILLION OF 7125 EUROBONDS DUE JAN 14 2004 AT ISSUE PRICE 101095 VIA UBS LTD REOFFERED AT 9947 TO YIELD 72 A SPREAD OF 60 BASIS POINTS ABOVE COMPARABLE UK GILT FEES TWO POINTS BANCO MEDEFIN SA ARGENTINA 50 MILLION OF 85 EUROBONDS DUE DEC 15 1995 AT ISSUE AND REOFFER PRICE 99282 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND WEST MERCHANT BANK LTD BONDS YIELD SPREAD OF 470 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES ONE POINT PAYABLE SEMIANNUALLY BREMEN GERMAN STATE 200 MILLION MARKS OF STEPUP FIXEDRATE EUROBONDS DUE JAN 14 2009 AT ISSUE PRICE 1019 VIA MORGAN STANLEY GMBH AND BADENWUERTTEMBERGISCHE BANK REOFFERED AT 9995 COUPON 575 IN YEARS ONE TO EIGHT 725 THEREAFTER PUT OPTION EXERCISABLE ANNUALLY AT PAR FROM JANUARY 2002 TO 2008 FEES 25 CREDIT COMMERCIAL DE FRANCE SA FRANCE 100 MILLION SWISS FRANCS OF BONDS DUE JAN 11 1999 COUPON SIXMONTH SWISSFRANC LONDON INTERBANK OFFERED RATE LESS 00625 POINT PRICED AT 1005 VIA CREDIT SUISSE SAXONY GERMAN STATE 300 MILLION MARKS OF 6 EXTENDIBLE BONDS DUE JAN 6 2004 AT ISSUE PRICE 10125 VIA JP MORGAN GMBH REOFFERED AT 99075 TO YIELD 613 A MARGIN OF 30 BASIS POINTS OVER COMPARABLE GERMAN BUND INVESTOR HAS RIGHT TO EXTEND MATURITY FOR FIVE YEARS IN 2004 AND 2009 TO FINAL MATURITY DATE JAN 6 2014 IF EXTENDED COUPON IS RESET AT 7 FEES 25 SOCIETE CENTRALE DE CAISSE D'EPARGNE FRENCH 500 MILLION FRENCH FRANCS OF FLOATINGRATE BONDS DUE JUNE 2 2003 AT ISSUE AND REOFFER PRICE 10485 VIA BANQUE PARIBAS BONDS WILL TRADE INTERCHANGEABLY WITH 31 BILLION FRANCS OF OUTSTANDING IDENTICAL BONDS NEW ISSUE SIZE 36 BILLION FRANCS COUPON 10 BASIS POINTS ABOVE THE TAUX MOYENS DES EMPRUNTS D'ETAT FEES 035 9312070017 931207 WHO'S NEWS FIDELITY NEW YORK FEDERAL SAVINGS BANK FIDELITY NEW YORK FEDERAL SAVINGS BANK GARDEN CITY NY WILLIAM A WESP 44YEAROLD EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER OF THIS BANKING CONCERN WAS ELECTED A DIRECTOR INCREASING THE BOARD TO EIGHT MEMBERS 9312070016 931207 WHO'S NEWS DIAL CORP DIAL CORP PHOENIX THOMAS L GOSSAGE WAS ELECTED A DIRECTOR OF THIS CONSUMER PRODUCTS AND SERVICES CONCERN SUCCEEDING DANIEL E GILL 56 YEARS OLD WHO RESIGNED MR GOSSAGE 59 IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HERCULES INC 9312070015 931207 SBS ENGINEERING INC ALBUQUERQUE NM SBS ENGINEERING INC SAID A LETTER OF INTENT TO BUY IWL COMMUNICATIONS INC HAS BEEN TERMINATED BY IWL'S PRESIDENT SBS A MAKER OF FLIGHTSIMULATION SYSTEMS ANNOUNCED THE PROPOSED TRANSACTION IN OCTOBER THOUGH TERMS WEREN'T DISCLOSED SBS SAID THE ACQUISITION IF COMPLETED WOULD HAVE ADDED ABOUT 12 MILLION A YEAR TO THE COMPANY'S REVENUE SBS SAID IGNATIUS W LEONARDS PRESIDENT AND FOUNDER OF IWL MADE A DECISION AGAINST GOING FORWARD WITH THE DEAL NO FURTHER DETAILS WERE DISCLOSED AND MR LEONARDS DIDN'T RETURN PHONE CALLS IWL BASED IN HOUSTON SUPPLIES RADIO MICROWAVE AND SATELLITECOMMUNICATIONS SYSTEMS TO THE PETROLEUM INDUSTRY 9312070014 931207 CREDIT MARKETS TREASURYS SOAR AS INVESTORS APPEAR TO SHRUG OFF FEARS OF HIGH INFLATION FROM A REVIVING ECONOMY BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER WEEKS OF REPORTS SHOWING A STRENGTHENING US ECONOMY THE US TREASURY MARKET YESTERDAY APPEARED TO HAVE SHRUGGED OFF WORRIES THAT HAVE BOOSTED YIELDS JUST ONE TRADING SESSION AFTER DIGESTING A VERY STRONG EMPLOYMENT REPORT FOR NOVEMBER TREASURY PRICES SOARED THE BENCHMARK 30YEAR BOND ROSE ABOUT A POINT OR ABOUT 10 FOR A BOND WITH A 1000 FACE VALUE TO 101 5/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 616 FROM 623 ON FRIDAY FOR MUCH OF THE PAST SIX WEEKS INVESTORS HAVE BEEN PUMMELING TREASURY PRICES BY SELLING BONDS AT EACH SIGN OF ECONOMIC STRENGTH THEY WORRIED THAT MORE RAPID ECONOMIC GROWTH WOULD LEAD TO HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BUT INVESTORS SEEMED TO HAVE OVERCOME THESE FEARS MANY ARE NOW CONVINCED THAT EVEN THOUGH THE ECONOMY IS GROWING IT IS UNLIKELY TO LEAD TO SIGNIFICANTLY HIGHER INFLATION PROSPECTS FOR A STRONGER ECONOMY WERE GOOD NEWS FOR ONE COMPANY YESTERDAY IN PARTICULAR STONECONSOLIDATED CORP A UNIT OF STONE CONTAINER CORP A BIG MAKER OF NEWSPRINT AND LINERBOARD THE PARENT COMPANY HAS BEEN TRYING FOR MUCH OF THIS YEAR TO DEAL WITH A BURDENSOME DEBT LOAD BY SELLING NEW STOCKS OR BONDS DEMAND FROM INVESTORS WHO ARE CONVINCED THAT THE ECONOMY IS ON THE MEND HELPED THE CONCERN SELL 225 MILLION OF JUNKRATED BONDS YESTERDAY THAT INVESTOR SENTIMENT WOULD BE SO POSITIVE IN ADVANCE OF TWO IMPORTANT INFLATION REPORTS EITHER OF WHICH COULD PUNCTURE HOPES FOR CONTINUED LOW INFLATION SEEMS REMARKABLE ACCORDING TO RON CONNORS MANAGER OF GOVERNMENT TRADING AT BEAR STEARNS & CO INVESTORS ARE CERTAINLY BETTING ON AN ECONOMIC SLOWDOWN IN THE FIRST QUARTER AND IT MAY NOT BE A WISE MOVE I DISAGREE WITH THAT HE SAYS MY SENSE IS THAT IT WON'T SLOW DOWN THAT MUCH HE EXPLAINED BECAUSE OF ALL THE STRONG ECONOMIC REPORTS SINCE MIDOCTOBER WHEN THE 30YEAR BOND YIELD REACHED 579 MANY INVESTORS HAVE BEEN SITTING ON THE SIDELINES SAYS MR CONNOR BUT OVER THE PAST FEW TRADING SESSIONS THE CASH ON THE SIDELINES IS REALLY COMING BACK INTO THE MARKETPLACE HE SAYS MICHAEL STRAUSS CHIEF ECONOMIST AT YAMAICHI INTERNATIONAL AMERICA INC SAYS THE MARKET DANGEROUSLY DIGESTED THE EMPLOYMENT NEWS BY GIVING TOO MUCH SUPPORT TO SHORTERTERM SECURITIES AN OCCURRENCE REPEATED YESTERDAY THE COUPONEQUIVALENT YIELDS OF MANY SHORTTERM TREASURY SECURITIES DROPPED YESTERDAY WITH THE THREEMONTH BILL FOR EXAMPLE YIELDING 315 AT DAY'S END COMPARED WITH 317 ON FRIDAY MR STRAUSS SAYS THE STRENGTH EVIDENT IN THE ECONOMY IN THE LATEST SERIES OF ECONOMIC REPORTS WILL LEAD TO A MOVE TO BOOST SHORTTERM INTEREST RATES BY THE FEDERAL RESERVE BEFORE THE END OF THE FIRST QUARTER STRONG CAR AND TRUCK SALES DATA REPORTED FRIDAY FOR INSTANCE WILL TRIGGER ADDITIONAL AUTO PRODUCTION AND COULD LEAD AUTO MAKERS TO RAISE PRICES HE SAYS THE ONLY FACTOR KEEPING A LID ON A FED TIGHTENING IS THE CONTINUED SLIDE IN CRUDE OIL PRICES SAYS MR STRAUSS YESTERDAY CRUDE OIL FOR JANUARY DELIVERY TRADED ON THE NEW YORK MERCANTILE EXCHANGE DROPPED 40 CENTS TO 1457 OIL PRICES BEGAN SLIDING NOV 25 AFTER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FAILED TO AGREE TO PRODUCTION LIMITS YESTERDAY MARTIN MAURO A FIXEDINCOME STRATEGIST AT MERRILL LYNCH & CO SAID AT A NEWS CONFERENCE THAT HE EXPECTS THE FED TO TIGHTEN POLICY MODESTLY IN 1994 THIS EXPECTED MOVE COUPLED WITH NO SIGNIFICANT RISING INFLATION WILL RESULT IN HIGHER SHORTTERM YIELDS AND STEADY TO SLIGHTLY LOWER LONGTERM YIELDS HE SAID WE BELIEVE THE 30YEAR TREASURY BOND OFFERS GOOD LONGTERM VALUE AT A YIELD OF 625 OR HIGHER SAID MR MAURO CONTRIBUTING TO THE STRENGTH OF TREASURY PRICES YESTERDAY AND FRIDAY WAS A TOUCH OF BEARISHNESS AMONG WALL STREET FIRMS WHICH ARE RELUCTANT TO HOLD LARGE INVENTORIES OF BONDS IN ANTICIPATION OF CLIENT ORDERS AS A RESULT WHENEVER A LARGE NEW ORDER COMES IN MANY FIRMS ARE FORCED TO BUY THE BONDS IN THE OPEN MARKET THUS HELPING PUSH PRICES UP EVEN FURTHER THE WALL STREET POSITION IS VERY DEFENSIVE RIGHT NOW SAID MEAD L BRIGGS HEAD OF RISK MANAGEMENT AT DEUTSCHE BANK GOVERNMENT SECURITIES INC INVESTORS ARE COUNTING ON GOOD NEWS FROM TWO INFLATION REPORTS SCHEDULED TO BE RELEASED ON THURSDAY AND FRIDAY RESPECTIVELY THE PRODUCERPRICE INDEX AND THE CONSUMERPRICE INDEX CONSENSUS ON WALL STREET CALLS FOR NO CHANGE IN THE PPI INDEX FROM OCTOBER AND A 02 RISE IN THE CPI INDEX FROM OCTOBER SAID MR BRIGGS HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED DEC 9 THE 13WEEK BILLS MATURE MARCH 10 1994 AND THE 26WEEK BILLS MATURE JUNE 9 1994 FOR THE JUNKBOND MARKET THE SALE OF 225 MILLION OF SEVENYEAR NOTES BY STONECONSOLIDATED WAS A LANDMARK IT SHOWED THAT DESPITE A HEAVY DEBT LOAD AND DEPRESSED EARNINGS INVESTORS WERE WILLING TO TAKE A CHANCE ON A CYCLICAL COMPANY BECAUSE THEY BELIEVE THE ECONOMY IS GOING TO HELP IT FLOURISH MARK DURBIANO A JUNKBOND PORTFOLIO MANAGER AT FEDERATED INVESTORS SAID THAT THE PARENT COMPANY IS GOING TO BE A SURVIVOR BECAUSE IT'S A CYCLICAL COMPANY AND PRICES OF NEWSPRINT AND LINERBOARD ARE BOTTOMING OUT AND ARE GOING TO GO HIGHER THINGS CAN'T GET ANY WORSE HE SAID IN NOVEMBER STANDARD & POOR'S CORP COMMENTED THAT STONECONSOLIDATED'S BUSINESS POSITION IS BELOW AVERAGE DESPITE A SOMEWHAT IMPROVED COST PROFILE AS A LACK OF GRADE DIVERSITY MAKES EARNINGS VULNERABLE TO CHANGING MARKET CONDITIONS THE RATING AGENCY ALSO SAID PRICES FOR THE COMPANY'S PRODUCTS HAVE BEEN SEVERELY DEPRESSED IN RECENT YEARS REFLECTING OVERCAPACITY IN CORE NEWSPRINT MARKETS THE AGENCY SAID THAT EARNINGS WOULD IMPROVE OVER THE LONG TERM BUT ONLY GRADUALLY S&P RATED THE OFFERING SINGLEBPLUS MOODY'S INVESTORS SERVICE INC RATED THE ISSUE SINGLEB1 STONECONSOLIDATED PRICED ITS SEVENYEAR SENIOR SECURED NOTES AT PAR TO YIELD 1025 FAR BELOW EARLY EXPECTATIONS OF A YIELD AS HIGH AS 10625 ACCORDING TO MCM CORPORATEWATCH AN INFORMATION SERVICE OF MCCARTHY CRISANTI & MAFFEI INC A NEW YORK BROKERAGE FIRM THE LOWER YIELD IS A SIGN OF STRONG DEMAND AS IS THE DECISION OF THE FIRM TO INCREASE THE OFFERING SIZE FROM A PLANNED SIZE OF 200 MILLION THE DEBT SALE WAS OVERSUBSCRIBED AND PRICED LOWER THAN INITIAL MARKET TALK ACCORDING TO MARK FIELD MANAGING DIRECTOR AND HEAD OF HIGHYIELD DEBT AT SALOMON BROTHERS INC WHICH WAS LEAD UNDERWRITER THE COMPANY ALSO SOLD 300 MILLION OF STOCK IN AN INITIAL PUBLIC OFFERING IN CANADA AS NEWS SPREAD YESTERDAY ABOUT THE SUCCESS OF BOTH DEALS STONE CONTAINER'S 11875 COUPON SENIOR NOTES DUE 1998 ROSE 1 3/8 POINT OR 1375 FOR A BOND WITH A 1000 FACE VALUE TO 102 3/8 THE YIELD DROPPED TO 1123 FROM 116 RISING YEAREND DEMAND FOR MUNICIPAL BONDS CONTINUED TO DRIVE PRICES HIGHER MUNIS CLIMBED IN THIN TRADING FOR THE THIRD CONSECUTIVE TRADING DAY AND FINISHED WITH GAINS OF AS MUCH AS 1 3/8 POINTS YESTERDAY ALTHOUGH THE TREASURY BOND MARKET'S STRENGTH AIDED MUNIS YESTERDAY AND FRIDAY TRADERS SAID MUNIS ARE BECOMING INDEPENDENTLY STRONG BECAUSE OF BUYING THAT'S BEING DONE BEFORE ANOTHER ROUND OF HEAVY BOND CALLS NEXT MONTH BOTH INSTITUTIONS AND INDIVIDUAL INVESTORS HAVE BEEN SEEN SCRAMBLING TO PURCHASE WHATEVER BONDS ARE AVAILABLE TRADERS SAID IN LATE TRADING THE ALASKA HOUSING FINANCE CORP'S 590 BONDS DUE 2033 WERE UP 3/8 POINT AT 99 5/8 YIELDING 591 THE FLORIDA BOARD OF EDUCATION'S 5125 BONDS DUE 2022 FINISHED 1 3/8 STRONGER AT 95 3/4 YIELDING 540 IN THE TREASURY BOND MARKET PRICES WERE UP AS MUCH AS 26/32 YESTERDAY AFTERNOON MUNIS FAILED TO STRENGTHEN AS MUCH AS TREASURYS EARLIER THIS YEAR BECAUSE A DELUGE OF TAXEXEMPT ISSUANCE WEIGHED ON PRICES BUT THEY ARE NOW CATCHING UP AFTER LAGGING BEHIND US GOVERNMENT BONDS WITH YIELDS FALLING AS PRICES RISE MUNI ISSUERS ARE HURRYING OFFERINGS TO THE MARKET THE SESSION'S ISSUANCE WHICH WAS UNUSUALLY HEAVY FOR A MONDAY TOTALED MORE THAN 900 MILLION MORTGAGE SECURITIES FOLLOWED COMPARABLE US TREASURYS HIGHER YESTERDAY ALTHOUGH MOST BUYING WAS DONE BY WALL STREET DEALERS AMONG 65 ISSUES FOR DECEMBER DELIVERY GINNIE MAES ARE UP 13/32 AT 99 18/32 TO YIELD 660 FREDDIE MAC GOLDS AND FANNIE MAES ALSO WERE UP 13/32 AT 99 27/32 AND 99 20/32 RESPECTIVELY INSTITUTIONAL INVESTORS CHOSE TO BOW OUT OF YESTERDAY'S SESSION BUT MORTGAGE ANALYSTS AND TRADERS SAID THERE'S A GOOD CHANCE SUCH BUYERS WILL BECOME A FORCE IN THE FIRST QUARTER MANY OF THESE INVESTORS MAY SHIFT MONEY OUT OF US TREASURYS THEY SAID AS THAT MARKET IS SEEN BY MANY AS HAVING ALREADY POSTED THE BEST LEVELS OF THE CURRENT CYCLE THE BETTER OUTLOOK FOR MORTGAGES STEMS LARGELY FROM A GROWING BELIEF THAT PREPAYMENTS OR THE EARLY CALLS OF MORTGAGE BONDS STEMMING FROM REFINANCING OF THE UNDERLYING LOANS ARE GOING TO DROP OVER THE NEXT FEW MONTHS I THINK MAYBE PEOPLE SEE SOME LIGHT AT THE END OF THE REFINANCING WAVE SAID DAVID JACOBS HEAD OF MORTGAGEBACKED SECURITIES RESEARCH AT NOMURA SECURITIES INC HE SAID CURRENT COUPONS OR THOSE NOW IN PRODUCTION BY MORTGAGE BANKERS WILL PROBABLY BE THE BEST OF THE FIELD TODAY INVESTORS WILL GET ANOTHER HINT AT WHERE THE MARKET IS HEADED WHEN THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION RELEASE THEIR NOVEMBER PREPAYMENT REPORTS ABBY SCHULTZ AND JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE THE COUPONEQUIVALENT YIELD OF 13WEEK BILLS SOLD BY THE TREASURY MONDAY WAS 318 NOT 316 AS REPORTED IN TUESDAY'S CREDIT MARKETS COLUMN 9312070013 931207 TECHNOLOGY BRIEF TANDEM COMPUTERS INC UNIT'S PRODUCTS TO PREVENT COMPUTERNETWORK FAILURES TANDEM COMPUTERS INC AND ITS UNGERMANNBASS INC UNIT INTRODUCED SEVERAL PRODUCTS DESIGNED TO PREVENT FAILURES OF CLIENTSERVER COMPUTER NETWORKS SUCH NETWORKS WHICH ARE REPLACING MAINFRAME SYSTEMS FOR HANDLING CRUCIAL DATAPROCESSING JOBS ARE WIDELY BELIEVED TO BE MORE PRONE TO SERVICE INTERRUPTIONS THAN THE BIG MACHINES TANDEM IN CUPERTINO CALIF A LONGTIME SPECIALIST IN FAULTTOLERANT COMPUTING SAID ITS NEW NONSTOP ACCESS FOR NETWORKING PRODUCTS CAN REDUCE SUCH OUTAGES BY 82 THE PRODUCTS INCLUDE A CIRCUIT BOARD FOR IBMCOMPATIBLE PERSONAL COMPUTERS THAT HAS TWO DATA PORTS SO THAT IT CAN SWITCH TO AN ALTERNATE PATH FOR TRANSMITTING DATA IF ONE LINK GOES DOWN THE 199 BOARD IS SCHEDULED FOR SHIPPING IN THE FIRST THREE MONTHS OF 1994 THE FIRST PRODUCTS WORK WITH TANDEM COMPUTERS AS HUBS OF THE NETWORK UNGERMANNBASS PLANS TO LICENSE THE TECHNOLOGY SO THAT OTHER COMPANIES' COMPUTERS CAN BE USED IN THIS SERVER ROLE 9312070012 931207 TECHNOLOGY & SCIENCE CORANGE WILL BUY 15 STAKE IN CELLPRO FOR 110 MILLION MAKE OTHER PAYMENTS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL CELLPRO INC SAID CORANGE INTERNATIONAL LTD AGREED TO BUY A 15 STAKE IN CELLPRO OVER THE NEXT 15 MONTHS FOR 110 MILLION THE PURCHASE PRICE INDICATES A TOTAL VALUE FOR CELLPRO A TINY SEATTLE BIOTECHNOLOGY COMPANY THAT IS DEVELOPING CUTTINGEDGE PRODUCTS FOR TREATING CANCER AND OTHER DISEASES OF MORE THAN 730 MILLION THAT IS AN EYEPOPPING FIGURE GIVEN THE FACT THAT CELLPRO REVENUE THIS YEAR IS RUNNING AT AN ANNUALIZED RATE OF ABOUT 25 MILLION CELLPRO HAS NEVER BEEN PROFITABLE IT HAS LOSSES TOTALING 322 MILLION SINCE IT WAS FOUNDED IN 1989 MOREOVER IN ADDITION TO THE EQUITY INVESTMENT CORANGE A BERMUDABASED HOLDING COMPANY WHOSE UNITS INCLUDE EUROPEAN PHARMACEUTICAL AND DIAGNOSTIC SYSTEMS CONCERN BOEHRINGER MANNHEIM ALSO AGREED TO PROVIDE CELLPRO WITH PAYMENTS AND FEES TOTALING ANOTHER 110 MILLION CELLPRO'S STOCK CLIMBED 8 ON THE NEWS CLOSING AT 3325 UP 250 IN NASDAQ TRADING ITS SHARES HAVE RISEN 22 SINCE LATE NOVEMBER WHEN IT WAS TRADING AT 2725 THE DEAL AMOUNTS TO AN ENORMOUS VOTE OF CONFIDENCE FOR CELLPRO'S AVANTGARDE TECHNOLOGIES AND CLEARLY ANNOINTS IT AS THE LEADER IN THE HIGHSTAKES RACE TO DEVELOP SYSTEMS KNOWN AS CELL SEPARATORS THOSE SYSTEMS USE MONOCLONAL ANTIBODIES TO SEPARATE OUT SPECIFIC GROUPS OF BLOOD CELLS WHICH CAN THEN BE USED IN THERAPEUTIC DIAGNOSTIC AND RESEARCH APPLICATIONS FOR VARIOUS DISEASES PRINCIPALLY CANCER AND AUTOIMMUNE DEFICIENCY DISORDERS THE MARKET FOR EFFECTIVE CELLSEPARATION TECHNOLOGY IS CONSIDERED ENORMOUS IN ADDITION TO CELLPRO SUCH COMPANIES AS APPLIED IMMUNE SCIENCES INC AND SYSTEMIX INC HAVE BEEN WORKING ON CELLSEPARATION SYSTEMS BUT ANALYSTS SAY CELLPRO'S SYSTEM IS FURTHEST ALONG IT IS ALREADY BEING MARKETED IN EUROPE AND HAS COMPLETED PHASE III CLINICAL TRIALS ONE OF THE LAST STEPS OF THE PROCESS FOR MARKETING APPROVAL FROM THE US FOOD AND DRUG ADMINISTRATION UNDER THE TRANSACTION CORANGE WILL FIRST ACQUIRE 12 MILLION NEWLY ISSUED CELLPRO SHARES FOR 50 MILLION OR 4309 A SHARE FIFTEEN MONTHS AFTER THE INITIAL PURCHASES CORANGE WILL ACQUIRE ANOTHER 60 MILLION OF NEW CELLPRO SHARES FOR AT LEAST 4740 A SHARE CORANGE COULD PAY MORE FOR THOSE SHARES DEPENDING ON CELLPRO'S STOCK PRICE DURING THE 15MONTH PERIOD CELLPRO CURRENTLY HAS ABOUT 117 MILLION SHARES OUTSTANDING AFTER THE STOCK PURCHASES CORANGE WOULD OWN ABOUT 15 OF CELLPRO ON A FULLY DILUTED BASIS THE TRANSACTION CALLS FOR CELLPRO AND CORANGE TO TEAM UP IN SUCH MARKETS AS EUROPE THE FAR EAST AND LATIN AMERICA WHERE THE BOEHRINGER MANNHEIM UNIT IS STRONG BUT CELLPRO RETAINS THE NORTH AMERICAN MARKETING RIGHTS TO ITS PRODUCTS IT'S A GREAT DEAL FOR CELLPRO SAID GREGORY BROWN VICE PRESIDENT AND BIOTECH ANALYST AT VECTOR SECURITIES INTERNATIONAL INC IT REALLY PUTS THEM AHEAD OF THE PACK OFFICIALS OF CORANGE WHICH HAD 1992 SALES OF 32 BILLION COULDN'T BE REACHED FOR COMMENT THE DEAL MARKS ANOTHER BOLD FORAY BY ITS CHIEF EXECUTIVE OFFICER MAX LINK A FORMER TOP EXECUTIVE OF SANDOZ LTD WHO CAME TO CORANGE LAST YEAR MR LINK IS KNOWN FOR HIS AGGRESSIVE AND TO DATE USUALLY SUCCESSFUL BETS ON LEADINGEDGE BIOTECHNOLOGIES IN A TELEPHONE INTERVIEW MR LINK SAID CELLPRO'S CELLSEPARATION SYSTEMS HOLD A TWIN ALLURE FOR CORANGE THEY CAN BE APPLIED BY BOTH THE PHARMACEUTICAL AND DIAGNOSTIC DIVISIONS OF BOEHRINGER MANNHEIM RIGHT NOW BOEHRINGER IS CONSIDERED STRONGER IN DIAGNOSTICS THAN IN PHARMACEUTICALS MOREOVER CELLPRO IS THE ONLY COMPANY OPERATING IN THE AREA OF CELLSEPARATION TECHNOLOGY WITH ACTUAL SALES ALREADY MR LINK SAID THE PREMIUM MR LINK IS PAYING FOR CELLPRO AMOUNTS TO ROUGHLY 55 ABOVE CELLPRO STOCK'S TRADING RANGE JUST A FEW DAYS AGO AND IMPLIES A VALUE FOR CELLPRO OF NEARLY 300 TIMES ITS ANNUAL REVENUE FOR THE FISCAL SIX MONTHS ENDED SEPT 30 CELLPRO HAD A NET LOSS OF 64 MILLION OR 55 CENTS A SHARE ON REVENUE OF 13 MILLION THE RICH PREMIUM RAISED SOME EYEBROWS AMONG ANALYSTS BUT RICHARD D MURDOCK CELLPRO'S PRESIDENT AND CHIEF EXECUTIVE SAID CELLPRO IS WORTH IT YES THE PREMIUM IS SIGNIFICANT BUT OUR RESEARCH AND CORANGE'S TELLS US THAT THESE MARKETS ARE POTENTIALLY HUGE HE SAID IF THE MARKETS DEVELOP THE WAY WE THINK THEY WILL THE PREMIUM IS GOING TO SEEM SMALL 9312070011 931207 CIRCUIT CITY STORES SALES RICHMOND VA CIRCUIT CITY STORES INC SAID NOVEMBER SALES AT STORES OPEN MORE THAN ONE YEAR INCREASED 6 WHILE OVERALL SALES GAINED 25 TO 4105 MILLION FROM 3281 MILLION THE RETAILER OF CONSUMER ELECTRONICS GEAR AND APPLIANCES ADDED THAT SALES FOR THE QUARTER ENDED NOV 30 WERE 102 BILLION A 26 INCREASE FROM 8054 MILLION IN LAST YEAR'S THIRD QUARTER SALES AT STORES OPEN MORE THAN A YEAR GAINED 5 IN THE THIRD QUARTER COMPARED WITH LAST YEAR THE COMPANY PLANS TO RELEASE THIRDQUARTER EARNINGS NEXT TUESDAY 9312070010 931207 INTUIT INC AND VISA OFFER SOFTWARE PROGRAM FOR HOME BANKING SAN MATEO CALIF INTUIT INC AND VISA INTERNATIONAL UNVEILED A JOINTLY DEVELOPED FINANCIAL SERVICES SOFTWARE PROGRAM THAT THEY HOPE TO MAKE AN INDUSTRY STANDARD IN THE INCREASINGLY COMPETITIVE BANKBYCOMPUTER ARENA INTUIT A SOFTWARE DEVELOPER WHOSE QUICKEN PROGRAM IS A TOPSELLING FINANCIAL SOFTWARE PRODUCT FOR HOMECOMPUTER USERS AND VISA SAID THEIR NEW SOFTWARE WILL ENABLE USERS TO PERFORM BANKING TASKS FROM THEIR HOME COMPUTERS WITH THE TOUCH OF A BUTTON ADDITIONALLY CAPITALIZING ON VISA'S STRONG LINKS WITH BANKS ACROSS THE COUNTRY THE COMPANIES SAID THEY'VE BEEN ABLE TO DESIGN THE SOFTWARE SO THAT IT CAN BE USED BY CUSTOMERS OF ALMOST ALL OF THE COUNTRY'S 12000 BANKS AND OTHER FINANCIAL INSTITUTIONS WITHOUT MAJOR ADJUSTMENTS OR ADDITIONS TO THE CUSTOMERS' EXISTING COMPUTER SYSTEMS THAT MAKES THIS PRODUCT UNIQUE SAID SCOTT COOK INTUIT'S CHIEF EXECUTIVE IT'S A SIGNIFICANT ADVANCE COMPETITION AMONG MAKERS OF PERSONALFINANCE SOFTWARE HAS BEEN HEATING UP LATELY FOR EXAMPLE MICROSOFT CORP THE SOFTWARE CONCERN EXPECTS TO UNVEIL TODAY ITS MICROSOFT MONEY PRODUCT WHICH WILL ENABLE USERS TO PERFORM SOME OF THE SAME BANKING TASKS AS THE NEW PRODUCT DEVELOPED BY INTUIT AND VISA HOWEVER MICROSOFT MONEY'S HOME BANKING FEATURES INITIALLY WILL ONLY WORK FOR CUSTOMERS WHO BANK AT A HANDFUL OF INSTITUTIONS THAT HAVE AGREED TO PARTICIPATE IN THE SERVICE INTUIT'S MR COOK SAID THE NEW SOFTWARE FROM INTUIT AND VISA CAN BE USED BY CUSTOMERS OF ANY INSTITUTION WITH WHICH VISA IS AFFILIATED MEANING ALMOST ALL OF THE NATION'S FINANCIAL INSTITUTIONS 9312070009 931207 BIG THREE PROPOSE CAREMISSIONS PLAN RIVALING CALIFORNIA'S DETROIT DETROIT'S BIG THREE AUTO MAKERS ANNOUNCED THEIR NATIONAL PROPOSAL FOR REDUCING VEHICLE POLLUTANTS BUT INSISTED IT HAS NOTHING TO DO WITH THEIR OPPOSITION TO MANDATES THAT REQUIRE THEM TO SELL ZEROEMISSION VEHICLES OR ELECTRIC CARS BUT IN ANNOUNCING THEIR PLAN HERE THE AUTO MAKERS ALSO ACKNOWLEDGED THAT IT DOESN'T INCLUDE ANY PROVISIONS FOR SELLING ZEROEMISSION VEHICLES THEIR PLAN IS BEING OFFERED AS AN ALTERNATIVE TO CALIFORNIA'S TOUGH VEHICLEEMISSION PROGRAM WHICH 13 STATES IN THE NORTHEAST HAVE BEEN MOVING TO ADOPT THAT PLAN REQUIRES AUTO COMPANIES TO MAKE 2 OF THEIR SALES COME FROM ZEROEMISSION VEHICLES BY 1998 THROUGH THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION DETROIT'S BIG THREE ARE OFFERING TO INTRODUCE CARS BETWEEN 2001 AND 2003 THAT WILL BE CLEANER THAN WHAT IS CURRENTLY REQUIRED UNDER THE FEDERAL CLEAN AIR ACT OF 1990 THE AUTO MAKERS ALSO SAY THAT UNDER THEIR PLAN THEY INTRODUCE VEHICLES THAT ARE JUST AS CLEAN AS SOME REQUIRED UNDER CALIFORNIA'S TOUGHER PROGRAM BUT AT LEAST TWO STATES IN THE NORTHEAST ARE EXPECTED TO BALK AT THE PROPOSAL NEW YORK HAS SAID IT WOULD NOT ACCEPT ANY PROPOSAL THAT DOES NOT INCLUDE PROVISIONS FOR ZEROEMISSION VEHICLES AND MASSACHUSETTS HAS EXPRESSED CONCERNS OVER HOW THE AUTO MAKERS' VOLUNTARY PROPOSAL WOULD BE ENFORCED THE 13 NORTHEASTERN STATES HAVE SCHEDULED A PUBLIC HEARING ON DEC 1617 IN HARTFORD CONN TO FIELD QUESTIONS ABOUT THEIR REGIONAL ADOPTION OF THE CALIFORNIA PROGRAM ALSO THE STATES ARE EXPECTED TO SEPARATELY EVALUATE THE MERITS OF THE BIG THREE'S PROPOSAL TO SEE IF IT WILL YIELD POLLUTION REDUCTIONS THAT ARE CAPABLE OF MEETING THE INDIVIDUAL STATE'S CLEAN AIR GOALS UNDER FEDERAL LAWS 9312070007 931207 US AND EC STILL PURSUE TRADE ACCORD GATT TALKS MAKE PROGRESS ON SOME FARM ISSUES BUT PROBLEMS PERSIST BY BOB DAVIS AND JULIE WOLF STAFF REPORTERS OF THE WALL STREET JOURNAL WITH THE DEADLINE FOR A WORLD TRADE AGREEMENT ONLY NINE DAYS OFF US AND EUROPEAN COMMUNITY NEGOTIATORS STRUGGLED TO REACH A DEAL THAT WOULD STRENGTHEN THE CHANCES FOR A GLOBAL ACCORD THE TWO SIDES DID REPORT SOME PROGRESS IN RESOLVING FARM ISSUES EC TRADE COMMISSIONER SIR LEON BRITTAN AND US TRADE REPRESENTATIVE MICKEY KANTOR MET THROUGH THE NIGHT IN AN ATTEMPT TO RESOLVE PROBLEMS THE MAIN ISSUES SNAGGING THE DISCUSSIONS ARE THE US DEMAND THAT THE EC REDUCE QUOTAS ON FOREIGN FILMS AND TELEVISION PROGRAMS AND A US ATTEMPT TO LIMIT EC AIRCRAFT SUBSIDIES BOWMAN CUTTER A SENIOR ECONOMIC ADVISER TO PRESIDENT CLINTON SAID ALL ISSUES ARE STILL OUTSTANDING HE ADDED THAT MR KANTOR CALLED THE PRESIDENT TO REPORT THAT ONLY MARGINAL PROGRESS WAS MADE YESTERDAY BUT DURING NEGOTIATIONS AFTER THAT CALL THE TWO SIDES WERE ABLE TO CHIP AWAY AT SOME OF THE PROBLEMS THE US HOPES TO CUT A DEAL WITH THE EC AND THEN MOVE THE NEGOTIATIONS TO GENEVA FROM BRUSSELS TO SIGN UP THE 103 OTHER NATIONS THRASHING OUT GLOBAL TRADE TALKS THERE BUT MR CUTTER RAISED THE PROSPECT THAT THE US MIGHT DECIDE TO MOVE THE NEGOTIATIONS TO GENEVA EVEN WITHOUT A USEC DEAL MR KANTOR IS SCHEDULED TO TRAVEL TO GENEVA TODAY AND THEN RETURN TO THE US TOMORROW NOTHING IS DEAD YET NOTHING IS DONE YET MR CUTTER SAID EARLY YESTERDAY US AGRICULTURE SECRETARY MIKE ESPY AND EC AGRICULTURE COMMISSIONER RENE STEICHEN AGREED TO CHANGES IN A FARMTRADE ACCORD REACHED LAST YEAR TO MAKE THE DEAL MORE ACCEPTABLE TO FRANCE BUT FRANCE CONTINUED TO INSIST THAT THE CHANGES WEREN'T FINAL AND THAT IT COULD STILL BLOCK THE PACT WHAT I KNOW IS NOT ACCEPTABLE I SEE NO REASON FOR THERE TO BE A TRADE DEAL FRENCH FOREIGN MINISTER ALAIN JUPPE SAID THE TRADE TALKS HELD UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE FACE A DEC 15 CONGRESSIONAL DEADLINE GARY HUFBAUER A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN WASHINGTON DC SAID FRANCE AND THE US ARE USING THE LOOMING DEADLINE TO WRING OUT AS MANY CONCESSIONS AS POSSIBLE WHAT'S HAPPENING IS A FURIOUS HORSETRADING OF ISSUES HE ADDED AT THE SAME TIME IT WAS FIGHTING WITH THE US FRANCE PLUNGED THE EC INTO A MESSY BRAWL BY SETTING NEW CONDITIONS FOR ITS ACCEPTANCE OF A GATT DEAL IN A LETTER FRENCH PRIME MINISTER EDOUARD BALLADUR TOLD GERMAN CHANCELLOR HELMUT KOHL EC COMMISSION PRESIDENT JACQUES DELORS AND SIR LEON THAT FRANCE WOULDN'T SIGN A GATT ACCORD UNLESS THE EC AGREED TO TOUGHEN ITS TRADE LAWS THE US HAS ARGUED THAT A DRAFT GATT AGREEMENT MUST BE CHANGED TO PROTECT US ANTIDUMPING LAWS WHICH FORBID COUNTRIES FROM SELLING PRODUCTS IN THE US AT UNFAIRLY LOW PRICES FRANCE WANTS THE EC TO BE ABLE TO MATCH THE US ABILITY TO RETALIATE AGAINST A COUNTRY WHOSE TRADE PRACTICES ARE DEEMED IMPROPER BUT GERMAN ECONOMICS MINISTER GUENTER REXRODT IMMEDIATELY REJECTED THE FRENCH DEMANDS ARGUING THAT THERE SHOULDN'T BE ANY LINK BETWEEN GATT AND THE EC'S OWN TRADE RULES GERMANY AND BRITAIN HAVE BLOCKED EFFORTS TO TOUGHEN EC ANTIDUMPING LAWS BECAUSE THEY FEAR THE CHANGES WOULD RESULT IN EC PROTECTIONISM THE TWO NATIONS ALSO ARE BIG EXPORTERS WHOSE COMPANIES WANT TO REIN IN THE USE OF ANTIDUMPING STATUTES WORLDWIDE EC OFFICIALS WHO STARTED THE DAY OPTIMISTICALLY BECAME INCREASINGLY WORRIED ABOUT THE SOUR ATMOSPHERE BETWEEN FRANCE AND OTHER EC COUNTRIES MOREOVER THERE WERE SIGNS THAT FRANCE'S TOUGHER STANCE WAS MAKING IT HARDER FOR SIR LEON AND MR KANTOR TO RESOLVE THEIR DIFFERENCES EUROPEAN FOREIGN MINISTERS WAITED MOST OF THE DAY FOR SIR LEON TO BRIEF THEM ON HIS DISCUSSIONS WITH MR KANTOR THEY DECIDED TO POSTPONE THEIR OWN GATT DISCUSSIONS UNTIL TODAY TO GIVE SIR LEON AND MR KANTOR MORE TIME TO NEGOTIATE THE OUTLINE AGREEMENT ON FARM TRADE WOULD CHANGE THE FARM PACT NEGOTIATED AT THE END OF THE BUSH ADMINISTRATION THAT CALLS FOR A 21 CUT IN THE VOLUME OF FARMEXPORT SUBSIDIES OVER SIX YEARS THE CHANGES ENVISIONED WOULD PHASE IN MORE SLOWLY THE CUTS THE EC MUST MAKE THIS CHANGE WOULD ALLOW THE EC MAINLY FRANCE TO EXPORT EIGHT MILLION MORE TONS OF WHEAT AT SUBSIDIZED PRICES DURING THE SIXYEAR PERIOD THE US ALSO WOULD EXTEND TO EIGHT YEARS FROM SIX THE PEACE CLAUSE UNDER WHICH IT AGREES NOT TO CHALLENGE THE EC'S FARM PLAN KNOWN AS THE COMMON AGRICULTURAL POLICY IN RETURN THE EC WOULD OFFER IMPROVED ACCESS TO ITS MARKET FOR ABOUT 20 US PRODUCTS INCLUDING ALMONDS CITRUS AND OTHER FRESH FRUITS PORK PRODUCTS AND TURKEY PRODUCTS THE EC ALSO WOULD GUARANTEE CONTINUED US SALES OF CORN AND SORGHUM IN SPAIN AND PORTUGAL WHICH CURRENTLY TOTAL 23 MILLION TONS ANNUALLY BUT MR CUTTER THE WHITE HOUSE ECONOMIC OFFICIAL SAID THE TWO SIDES HADN'T COMPLETED THE DEAL AND PAUL DRAZEK A TRADE ANALYST FOR THE AMERICAN FARM BUREAU FEDERATION THE MAIN US AGRICULTURAL LOBBY SAID IT WASN'T CLEAR WHETHER US FARMERS WOULD BENEFIT FROM THE PROPOSED DEAL HE SAID THE US MAY HAVE TO INCREASE SUBSIDIES FOR FARM EXPORTS TO EUROPE THE OPPOSITE OF WHAT THE US HAS BEEN SEEKING MR DRAZEK ALSO SAID THAT BIG FARMEXPORTING NATIONS SUCH AS AUSTRALIA NEW ZEALAND OR BRAZIL WOULD HAVE A HARD TIME SWALLOWING THE DEAL BECAUSE IT DOESN'T CUT SUBSIDIES AS DEEPLY AS PLANNED THERE'S A POSSIBILITY WE'D OPPOSE IT TOO HE SAID OF THE FARM BUREAU THERE ARE PEOPLE WITHIN OUR ORGANIZATION WHO HAVE ALREADY SAID THE US HAS GONE TOO FAR IN ADDITION A FARM PACT COULD PROVE COSTLY FOR THE EC'S ALREADY STRAINED BUDGET SPAIN PORTUGAL AND OTHER SOUTHERN EUROPEAN COUNTRIES MAY DEMAND FINANCIAL COMPENSATION TO GO ALONG WITH THE DEAL 9312070006 931207 INTERNATIONAL GERMAN PARTY'S SETBACKS PUT KOHL IN AN UPHILL STRUGGLE FOR SURVIVAL POLITICAL SHIFT FOR COUNTRY COULD HAVE BIG IMPACT ON EUROPEAN POLICIES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT A SERIES OF SETBACKS HAS EVEN CHANCELLOR HELMUT KOHL'S LOYAL SUPPORTERS WONDERING WHETHER HE CAN RECOVER IN TIME FOR 1994 ELECTIONS HIS CHRISTIAN DEMOCRATIC UNION FACES A HEAVY CALENDAR OF 17 STATE AND LOCAL BALLOTS NEXT YEAR AS WELL AS THE NATIONAL ELECTION IN OCTOBER IN RECENT MEETINGS WITH MR KOHL REGIONAL PARTY GROUPS HAVE PLEADED WITH THE CHANCELLOR FOR NEW IDEAS AND TOUGHER DECISIONMAKING ON THE NATIONAL LEVEL WE ALL FEEL THAT WE ARE IN A CRISIS SITUATION SAYS HERMANN KUES A SENIOR OFFICIAL FOR THE CDU IN LOWER SAXONY WHAT HAPPENS DEPENDS ON WHETHER THE CDU CAN SHOW ITSELF TO BE A PARTY TAKING THE INITIATIVE WITH SOLUTIONS EARLY NEXT YEAR MR KOHL'S LATEST PROBLEMS INCLUDE HIS ILLFATED EFFORT TO NOMINATE CDU MEMBER STEFFEN HEITMANN TO SUCCEED PRESIDENT RICHARD VON WEIZSAECKER WAS BLOCKED BY HIS COALITION PARTNERS RAISING QUESTIONS ABOUT THE CHANCELLOR'S POLITICAL JUDGMENT AND HIS LEVERAGE IN THE GOVERNING COALITION THE RESIGNATION LAST WEEK OF THE CDULED GOVERNMENT IN THE EASTERN GERMAN STATE OF SAXONYANHALT OVER ALLEGATIONS OF PADDED MINISTERIAL INCOMES THE CRUSHING CDU DEFEAT IN MUNICIPAL ELECTIONS IN THE EASTERN GERMAN STATE OF BRANDENBURG THE PARTY RAN THIRD WITH ONLY 20 OF THE VOTE BEHIND THE SUCCESSOR PARTY TO EAST GERMANY'S COMMUNISTS RECESSION RISING UNEMPLOYMENT AND BALLOONING PUBLIC DEFICITS HAVE FUELED SPECULATION THAT GERMANY'S POLITICAL LANDSCAPE MIGHT BE IN FOR A MAJOR SHIFT POLITICAL PARTIES OF ALL STRIPES SENSE THAT GERMAN VOTERS NEED A CHANGE OR AT LEAST A NEW DIRECTION WITH CREDIBLE PROSPECTS FOR ECONOMIC RENEWAL WITH A NATIONAL ELECTION ONLY 10 MONTHS OFF CHANCELLOR KOHL'S APPROVAL RATINGS ARE AS LOW AS THEY'VE BEEN DURING HIS 11YEAR ADMINISTRATION TO BE SURE MR KOHL'S DEMISE HAS BEEN PREDICTED BEFORE EVEN HIS CRITICS CONCEDE MR KOHL IS AT HIS BEST WHEN HIS BACK IS AGAINST THE WALL HIS ABILITY TO STRIKE BACK HAS OFTEN STUNTED THE CAREERS OF SOME WHO SOUGHT TO EXPLOIT A PERCEIVED WEAKNESS THE CHANCES FOR AN ECONOMIC RECOVERY COMING TO MR KOHL'S RESCUE LOOK SLIM HOWEVER MOST ECONOMISTS DON'T SEE GERMANY GETTING BACK ON TRACK UNTIL 1995 AT THE EARLIEST THE STAKES IN MR KOHL'S SURVIVAL STRUGGLE STRETCH WELL BEYOND GERMANY WHAT HAPPENS TO HIM COULD RESHAPE GERMANY'S POLICIES IN EUROPE JOBS WILL BE THE MAXIM FOR MR KOHL'S SURVIVAL IF HE DOESN'T RADICALLY CHANGE THINGS THE COALITION COULD BE AT AN END SAYS JOACHIM KRAUSE DEPUTY DIRECTOR OF THE GERMAN SOCIETY FOR FOREIGN AFFAIRS A BONN THINK TANK IN ANY CASE THE PRIORITIES OF THE GOVERNMENT WILL BECOME LESS EUROPEAN AND MORE ABOUT JOBS IN GERMANY EUROPEAN COMMUNITY INITIATIVES OFTEN RISE OR FALL ON AGREEMENT FROM GERMANY THE COMMUNITY'S LARGEST ECONOMY AND BIGGEST FINANCIAL CONTRIBUTOR CHANCELLOR KOHL ALREADY HAS RUFFLED FEATHERS IN THE EC COMMISSION BY SUGGESTING THAT MONETARY UNION MIGHT TAKE A FEW YEARS LONGER TO COMPLETE THAN THE INITIALLY EXPECTED COMPLETION DATE OF 1997 BONN CURRENTLY IS RESISTING AN EC BORROWING PLAN TO FUND JOB PROGRAMS IN THE COMMUNITY AND HAS BLOCKED LANGUAGE IN AN EC WHITE PAPER CALLING FOR RAPID INTERESTRATE CUTS ANALYSTS ALSO QUESTION BONN'S FUTURE WILLINGNESS TO PROVIDE TROOPS FOR UNITED NATIONS PEACEKEEPING FORCES WHICH IN THE PAST HAS EARNED THE CHANCELLOR POLITICAL OPPOSITION THE OPINION POLLS NATURALLY HAVE CAUSED NERVOUSNESS IN THE CDU SAYS MICHAEL GLOS A SENIOR MEMBER OF THE CHRISTIAN SOCIAL UNION THE CDU'S BAVARIAN SISTER PARTY HE SAID PARTIES SENSE THAT GERMANS ARE CONCERNED ABOUT THE ECONOMY AND THEIR JOBS IT'S LIKE IN THE US PEOPLE AREN'T INTERESTED IN FOREIGNPOLICY SUCCESSES THE PERCEIVED WEAKNESS OF MR KOHL'S GOVERNMENT ALSO IS BEING REGISTERED IN GERMAN FINANCIAL MARKETS WHERE A POSSIBLE CHANGE OF GOVERNMENT NEXT YEAR COULD THWART A POLICY OF FISCAL RESTRAINT TO BRING DOWN PUBLICSECTOR DEFICITS WHICH ARE NOW NEARING MORE THAN 5 OF GERMANY'S GROSS DOMESTIC PRODUCT NORBERT WALTER DEUTSCHE BANK AG'S CHIEF ECONOMIST TOLD A MANAGEMENT SEMINAR YESTERDAY THAT POLITICAL UNCERTAINTY IN GERMANY MEANS THAT FINANCIAL MARKETS WILL BE WATCHING NEXT YEAR'S SERIES OF STATE LOCAL AND NATIONAL ELECTIONS MORE CLOSELY THAN THE BIWEEKLY MEETINGS OF THE BUNDESBANK'S POLICYSETTING COUNCIL THE DAYS ARE GONE WHEN WE IN GERMANY COULD LAUGH ABOUT ITALY WITH ITS FASCISTS AND COMMUNISTS MR WALTER WAS QUOTED AS SAYING BY THE GERMAN ECONOMIC NEWS SERVICE WE HAVE THE PROBLEM HERE THE STANDING OF THE GOVERNMENT COALITION PARTIES MR KOHL'S CDU THE CSU AND THE FREE DEMOCRATIC PARTY INDICATES THAT THE THREE COULDN'T FORM A MAJORITY GOVERNMENT IF ELECTIONS WERE HELD TODAY A NATIONWIDE POLL CONDUCTED LAST MONTH BY THE INSTITUTE FOR ELECTION RESEARCH IN MANNHEIM SHOWED THE CDU/CSU GARNERING 32 OF THE VOTE COMPARED WITH 438 IN THE MOST RECENT ELECTION IN DECEMBER 1990 SUPPORT FOR THE FDP WAS MEASURED AT AN UNCHANGED 6 BUT THE OPPOSITION SOCIAL DEMOCRATIC PARTY HAS SEEN SUPPORT RISING TO 39 FROM A 335 RESULT IN THE 1990 BALLOT THE LOSS OF SUPPORT HAS BEEN MOST DRAMATIC IN EASTERN GERMANY WHERE MR KOHL WAS CELEBRATED AS THE GUARANTOR OF A NEW PROSPEROUS FUTURE IN 1990 NOW ABOUT ONE IN FOUR WORKERS IS EITHER OUT OF WORK OR WITHOUT FULLTIME PERMANENT EMPLOYMENT WHERE EASTERN GERMANS ARE SEEN REGISTERING ANGER OVER A BROKEN PROMISE THAT THEY WOULDN'T BE WORSE OFF AFTER UNITY WESTERN GERMAN VOTERS ARE WORRIED ABOUT LOST PROSPERITY AND UNEMPLOYMENT AS GERMANY STRUGGLES THROUGH THE WORST RECESSION SINCE POSTWAR RECONSTRUCTION 9312070005 931207 MARKETING & MEDIA ADVERTISING SONY ELECTRONICS TURNS TO ITS SISTER IN HOLLYWOOD FOR CREATIVE AD IDEAS BY KEVIN GOLDMAN ONCE AGAIN HOLLYWOOD IS TEACHING MADISON AVENUE A FEW TRICKS SONY JUST CONCLUDED AN EXPERIMENT IN SYNERGY ITS ELECTRONICS UNIT SOLICITED CREATIVE IDEAS FROM THE COMPANY'S HOLLYWOOD STUDIOS INCLUDING COLUMBIA PICTURES ON HOW TO ADVERTISE A POINTANDSHOOT CAMCORDER THE EXPERIMENT WAS A SUCCESS AND EXECUTIVES AT SONY'S ELECTRONIC AND MOTION PICTURES DIVISIONS SAY THIS IS HOW ADVERTISING WILL BE DONE FROM NOW ON WHEN POSSIBLE BUT THEY INSIST THAT THE COMPANY'S AD AGENCY LEO BURNETT OF CHICAGO SHOULDN'T FEEL THREATENED ESPECIALLY SINCE THE AGENCY TOOK PART IN BRAINSTORMING SESSIONS FROM VIRTUALLY THE BEGINNING OF MARKETING PLANNING FOR THE HANDYCAM SNAP WE DON'T SEE THIS AS A THREAT SAYS BRIAN WILLIAMS SENIOR VICE PRESIDENT AT BURNETT WHO IS IN CHARGE OF THE SONY ACCOUNT THE CONCEPT OF THE AD CAME FROM SONY PICTURES ONCE THAT CONCEPT WAS DEVELOPED WE WORKED ON THE EXECUTION THE PRODUCTION AND THE PLACEMENT NEVERTHELESS SONY'S NEW STRATEGY WILL CERTAINLY MAKE MADISON AVENUE MORE UNEASY THE AD INDUSTRY WAS SHAKEN UP TWO YEARS AGO AFTER THE BIG HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY SNARED CREATIVE RESPONSIBILITIES FOR THE COCACOLA ACCOUNT FROM INTERPUBLIC GROUP'S MCCANNERICKSON SONY EXECUTIVES CONTEND THAT WON'T HAPPEN TO BURNETT WHICH WON SONY'S ELECTRONIC ADVERTISING INCLUDING CAMCORDERS AND TRINITRON TELEVISION SETS TWO YEARS AGO FROM SLATER HANFT MARTIN IN NEW YORK MICHAEL P SCHULHOF PRESIDENT AND CHIEF EXECUTIVE OF SONY CORP OF AMERICA IS CREDITED WITH BRINGING THE ELECTRONICS AND MOVIE UNITS TOGETHER BECAUSE SONY PICTURES WHICH INCLUDES COLUMBIA PICTURES IS IN THE BUSINESS OF TRYING TO CONNECT EMOTIONALLY WITH MOVIEGOERS MR SCHULHOF THOUGHT IT WOULD BE WORTHWHILE FOR THE HOLLYWOOD STUDIO TO BE BROUGHT IN ON THE ADVERTISING FOR THE NEW EIGHTMILLIMETER CAMERA SAYS SID GANIS EXECUTIVE VICE PRESIDENT AND PRESIDENT OF MARKETING AND DISTRIBUTION AT COLUMBIA PICTURES WITH A PRICE OF ABOUT 1000 THE CAMCORDER COMES WITH AN UNUSUAL FEATURE A THREEINCH LIQUID CRYSTAL DISPLAY VIEWING SCREEN WHICH MEANS THE CAMERA DOESN'T HAVE TO BE HELD TO THE EYE WHEN RECORDING THAT MEANS AMATEUR DIRECTORS NO LONGER HAVE TO HOLD THE CAMERA WITH TWO HANDS COLUMBIA CREATED THE TAGLINE FOR THE CAMPAIGN SINGLEHANDEDLY CHANGING ENTERTAINMENT THE FOURPAGE PRINT CAMPAIGN IS EXPECTED TO BEGIN NEXT WEEK IN TIME NEWSWEEK PEOPLE AND SPORTS ILLUSTRATED COLUMBIA PICTURES ALSO DEVELOPED THE CAMPAIGN'S CONCEPT TO SHOW HOW SNAP BUYERS CAN VIEW FULLLENGTH MOTION PICTURES VIRTUALLY ANYWHERE AS WELL AS RECORD EVERYDAY OCCURRENCES THUS THE CAMPAIGN'S THEME IS YOU CAN WATCH MOVIES MAKE MOVIES BE IN MOVIES WITH THE CAMCORDER GLOSSY PHOTOGRAPHS SHOW A YOUNG COUPLE DRESSED TO THE NINES VIDEOTAPING THEMSELVES DANCING AND YUPPIES PARTYING ON A BOAT IN A THIRD AD SNAP RESTS ON A KITCHEN COUNTERTOP SURROUNDED BY A FANCY COFFEE MAKER A PEELED GRANNY SMITH APPLE AND HERBAL VINEGAR FILLED WITH PEPPERCORNS THE CAMCORDER SHOWS SLEEPLESS IN SEATTLE A COLUMBIATRISTAR HOME VIDEO RELEASE TRANSLATION MORE SYNERGY NOT ALL OF SONY PICTURES' IDEAS WORKED HOWEVER THE STUDIO SUGGESTED POPCORN AND OTHER PARAPHERNALIA ASSOCIATED WITH A MOVIE THEATER FOR THE PAGE WITH THE HEADLINE YOU CAN WATCH MOVIES BUT JEFFREY S BROOKS SENIOR VICE PRESIDENT OF ADVERTISING AND MARKETING AT SONY ELECTRONICS VETOED IT WE SAID THAT IS TOO TRADITIONAL HE EXPLAINS WE WANTED TO MAKE THE PRODUCT MORE RELATABLE TO USE IN THE HOME AND POPCORN WASN'T THE WAY TO GO THE CREATIVE CROSSFERTILIZATION WON'T STOP WITH SNAP ALREADY SONY ELECTRONICS IS IN DISCUSSIONS WITH SONY PICTURES FOR ITS ADVERTISING THOUGHTS ON CAMPAIGNS FOR OTHER ELECTRONIC PRODUCTS NEXT YEAR TO THE GENERAL ADVERTISING COMMUNITY THIS MAY ALL SEEM LIKE AN UNUSUAL DIRECTION SAYS MR BROOKS BUT NOT TO SONY IN THE PAST EIGHT MONTHS ACTIVITY HAS BEEN TAKING PLACE HERE AND WE'RE STARTING TO COLOR OUTSIDE THE TRADITIONAL LINES HE NOTES THAT SONY MUSIC ARTISTS RANGING FROM STANLEY CLARK TO DEEP FOREST TO JOE SATRIANI PROVIDE THE MUSICAL BACKGROUND IN ADVERTISEMENTS FOR SONY'S COMPUTER PRODUCTS TRINITRON AND COMPACT DISK PLAYERS RESPECTIVELY MR GANIS SAYS THE QUESTION FROM SENIOR SONY EXECUTIVES WAS DO YOU HAVE A FRESH ANGLE LET'S SEE WHAT RESOURCES THE MOVIE COMPANY HAS TO OFFER THE HARDWARE COMPANY NOT ONLY DID MR GANIS AND HIS SONY PICTURES COLLEAGUES PRESENT THE CONCEPT VERBALLY FOR THE CAMCORDER ADS BUT THEY ALSO CREATED ILLUSTRATIONS OF THE PROPOSED ADS I'M NOT SURPRISED THAT SONY PICTURES WOULD WANT A PIECE OF THE ADVERTISING SAYS MR BROOKS IT'S A VERY FLUID SITUATION HERE WITH A MUCH GREATER UNDERSTANDING BETWEEN SONY DIVISIONS BUT FROM THE BEGINNING MR BROOKS SAYS IT WASN'T THE COMPANY'S INTENTION TO CHANGE THE RELATIONSHIP BETWEEN SONY ELECTRONICS AND ITS AD AGENCY IT WAS TO ENHANCE IT HE SAYS AND MR GANIS SAYS THAT IF ANY EYEBROWS WERE RAISED AT BURNETT EVERYONE WAS CALM WITHIN THE FIRST HOUR OF THE FIRST MEETING IT BECAME CLEAR TO EVERYONE WE WERE BENEVOLENT IN OUR INTENTION HE SAYS AS IF TO PROVE IT MR GANIS SAYS THE STUDIO WOULD LISTEN IF BURNETT HAS ANY IDEAS FOR MOVIE ADVERTISING BURNETT PEOPLE HE SAYS ARE WELCOME AT SONY PICTURES SAATCHI & SAATCHI CO PLC SAID IT WILL POST LOWERTHANEXPECTED PROFIT IN 1993 BECAUSE OF HIGHER SEVERANCE COSTS APPEARING BEFORE ANALYSTS AT THE ANNUAL PAINEWEBBER MEDIA CONFERENCE SAATCHI'S CHIEF EXECUTIVE CHARLES SCOTT SAID SAATCHI EXPECTS TO INCUR 15 MILLION US224 MILLION IN SEVERANCE COSTS IN 1993 THREE TIMES THE 5 MILLION IT PREVIOUSLY ANTICIPATED SAATCHI OFFICIALS SAID 2 TO 3 OF THE AGENCY'S 11500 EMPLOYEES WILL BE DISMISSED PARTIALLY OFFSETTING THE HIGHER SEVERANCE COSTS IN 1993 IS A 4 MILLION GAIN THE COMPANY SAID STEMMING FROM UNEXPECTEDLY FAVORABLE TERMS IN THE SUBLEASE OF SOME SURPLUS OFFICE SPACE SAATCHI HAD PREVIOUSLY WRITTEN OFF ABOUT 150 MILLION TO REFLECT SURPLUS REAL ESTATE COSTS THROUGH 2013 BEFORE YESTERDAY'S ANNOUNCEMENT SOME ANALYSTS HAD EXPECTED THE BRITISH HOLDING COMPANY WHICH OWNS AD AGENCIES INCLUDING SAATCHI & SAATCHI ADVERTISING AND BACKER SPIELVOGEL BATES TO POST A PRETAX PROFIT IN 1993 OF ABOUT 25 MILLION IN 1992 SAATCHI POSTED A HUGE LOSS AFTER TAKING A 600 MILLION WRITEDOWN IN GOODWILL RELATED TO SEVERAL ACQUISITIONS MR SCOTT SAID THE COMPANY INTENDS TO HIRE ONE OR TWO TOP EXECUTIVES IN THE FIRST QUARTER OF 1994 FOR ONE OR MORE OF ITS AD AGENCIES SAATCHI ALSO SAID IT WILL VACATE ITS PLUSH BERKELEY SQUARE QUARTERS IN LONDON WHERE MAURICE SAATCHI AND CHARLES SAATCHI MAINTAINED THEIR OFFICES CHARLES SAATCHI RESIGNED FROM THE SAATCHI BOARD LAST WEEK RETAINING AN UNSPECIFIED ROLE ON THE CREATIVE SIDE OF THE BUSINESS MAURICE SAATCHI WILL MOVE TO THE AGENCY'S WHITFIELD STREET HEADQUARTERS THE EMPLOYEE CUTBACKS COME AS SAATCHI IS ANTICIPATING 30 MILLION LESS IN REVENUE IN 1994 DUE TO THE LOSS OF TWO MAJOR ACCOUNTS IN THE LAST QUARTER OF 1993 CHRYSLER CORP'S JEEP EAGLE DIVISION AND HELENE CURTIS INDUSTRIES ROBERT COEN ADSPENDING FORECASTER WITH INTERPUBLIC GROUP'S MCCANNERICKSON PREDICTED A 52 INCREASE IN US AD SPENDING IN 1993 REPRESENTING A REDUCTION OF HIS PREVIOUS FORECAST OF 69 THE PERENNIALLY CHEERFUL MR COEN SEES 1994 SPENDING UP 63 COMPARED WITH THE MORE GLOOMY OUTLOOK OF HIS BRITISH FORECASTING COUNTERPART JOHN PERRISS CHAIRMAN OF SAATCHI & SAATCHI CO'S ZENITH MEDIA WORLDWIDE MR PERRISS PREDICTED A MEAGER 02 INCREASE FOR NORTH AMERICA IN 1993 AND A DECLINE OF 04 IN 1994 IN THE FIRST NINE MONTHS OF 1993 MR COEN SAID AD SPENDING DECREASED AMONG AIRLINES 27 BEER 14 CIGARETTES 9 SOFT DRINKS 6 FOOD COMPANIES 4 AND AUTO MAKERS 1 BRIGHT SPOTS WERE UTILITIES AND TELECOMMUNICATIONS UP 30 AND HOUSEHOLD CLEANERS AND WAX UP 19 MEDIA ACCOUNT JOHNSON & JOHNSON NEW BRUNSWICK NJ MOVED ITS 200 MILLION NETWORK TELEVISION MEDIA ACCOUNT OUT OF YOUNG & RUBICAM NEW YORK AS EXPECTED AND AWARDED IT TO INTERPUBLIC GROUP'S MCCANNERICKSON NEW YORK J&J'S OTHER AGENCIES INCLUDING INTERPUBLIC'S LINTAS OMNICOM GROUP'S DDB NEEDHAM AND SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING ALSO COMPETED FOR THE BUSINESS ACCOUNT BRISTOLMYERS SQUIBB AWARDED THE CLAIROL PROFESSIONAL PRODUCTS ACCOUNT TO AVRETT FREE & GINSBERG NEW YORK OMNICOM GROUP'S DDB NEEDHAM RESIGNED FROM THE BUSINESS EARLIER THIS YEAR 9312070004 931207 SMALL STOCK FOCUS SELLING IN SEMICONDUCTOR GROUP HURTS TECHNOLOGY SECTOR CAPS OVERALL GAINS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SEVERAL CROSSCURRENTS KEPT SMALLCOMPANY PRICES LARGELY UNCHANGED BUT THE TECHNOLOGY SECTOR WAS MOSTLY LOWER AS CHIP MAKERS FELL TRADERS SAID FIRM PRICES AND AN ATTEMPT TO BREAK THROUGH CLOSING RECORDS ON THE NEW YORK STOCK EXCHANGE WORKED IN FAVOR OF SMALLER STOCKS BUT PRESSURE FROM THE TECHNOLOGY GROUP THOUGHT BY MANY TO BE THE FOUNDATION OF STRENGTH AMONG SMALLCAPITALIZATION STOCKS REINED IN GAINS THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAP ISSUES TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES EDGED UP JUST 012 POINT TO 25398 BUT SELLING IN THE SEMICONDUCTOR GROUP LOPPED OFF 113 POINTS FROM THE NASDAQ COMPOSITE INDEX WHICH FINISHED AT 77109 LARGE SEMICONDUCTOR STOCKS FELL AFTER MERRILL LYNCH & CO ANALYST THOMAS KURLAK DOWNGRADED INTEL AND MOTOROLA TO NEARTERM NEUTRAL FROM BUY CITING CONCERNS OVER THE DEMAND FOR PERSONAL COMPUTERS BY THE CLOSE BOTH STOCKS HAD RECOUPED SOME OF THEIR LOSSES INTEL FINISHED 4 LOWER AT 59 1/2 AND MOTOROLA NYSE GAVE UP 2 TO 94 1/8 AMONG SMALLER CHIP ISSUES NOVELLUS SYSTEMS FELL 2 1/4 TO 28 1/2 BELL MICROPRODUCTS SHED 1/4 TO 8 1/2 AND CYPRESS SEMICONDUCTOR NYSE DROPPED 3/4 TO 12 1/8 ALL THREE COMPANIES ARE BASED IN SAN JOSE CALIF NASDAQ LOSERS BEAT OUT GAINERS 1535 TO 1415 ON NASDAQ NATIONAL MARKET VOLUME OF 245757400 SHARES COMPARED WITH 278274900 SHARES FRIDAY TOTAL NASDAQ VOLUME HIT 2921660000 MILLION SHARES DOWN FROM 327870000 ON FRIDAY MUCH OF THE REST OF THE TECH GROUP ALSO GOT SLAMMED AST RESEARCH IRVINE CALIF TUMBLED 2 1/8 TO 22 7/8 MICROPROSE OF HUNT VALLEY MD SANK 2 1/2 TO 11 1/4 AND ALTRON WILMINGTON MASS FELL 1 3/8 TO 13 3/8 COMPUSA NYSE A DALLAS OPERATOR OF COMPUTER STORES TUMBLED 2 7/8 TO 23 1/2 ON HEAVY VOLUME THE COMPANY SAID IT DIDN'T KNOW OF ANY CORPORATE EXPLANATION FOR THE ACTIVITY AN ALEX BROWN & SONS RATING CUT TO BUY FROM STRONG BUY CARRIED OLICOM 3 1/2 LOWER TO 10 1/4 THE DANISH COMPANY PROVIDES LOCALAREANETWORK SOFTWARE AND HARDWARE PRODUCTS IN THE HEALTHCARE GROUP CELLPRO A BOTHELL WASH BIOTECHNOLOGY CONCERN SURGED 2 1/2 TO 33 1/4 THE COMPANY SAID IT ENTERED A STRATEGIC ALLIANCE WITH CORANGE INTERNATIONAL UNDER WHICH CORANGE WILL INVEST 110 MILLION IN CELLPRO THROUGH THE PURCHASE OF CELLPRO COMMON STOCK MERRILL LYNCH RAISED ITS INVESTMENT RATING ON CELLPRO'S SHARES TO BUY FROM ABOVE AVERAGE CYTOCARE OF IRVINE CALIF JUMPED 1 1/8 TO 7 THE PHARMACEUTICALS AND MEDICALDEVICE FIRM SAID IT IS CONSIDERING SEPARATING ITS OPERATING BUSINESS UNITS DURING 1994 NEWS LATE FRIDAY THAT FARM & HOME FINANCIAL KANSAS CITY MO SIGNED A DEFINITIVE AGREEMENT TO MERGE WITH ROOSEVELT FINANCIAL GROUP SENT FARM & HOME 4 7/8 HIGHER TO 25 1/8 ROOSEVELT FINANCIAL CHESTERFIELD MO SLIPPED 1 1/2 TO 40 3/4 DURACRAFT ZOOMED 2 3/4 HIGHER TO 22 3/4 THE COMPANY'S CHIEF FINANCIAL OFFICER KEITH SEIDMAN BACKS 1993 EARNINGS OF 125 A SHARE THE HIGHER OF TWO NEW ESTIMATES FOR 1992 THE WHITINSVILLE MASS COMPANY WHICH MAKES HUMIDIFIERS SPACE HEATERS AND FANS EARNED 62 CENTS A SHARE OSHMAN'S SPORTING GOODS ROSE 1 TO 7 1/4 AFTER ANNOUNCING IT EXPECTS A FOURTHQUARTER PROFIT BUT THE HOUSTON SPORTING GOODS RETAILER REPORTED A THIRDQUARTER LOSS OF 57 CENTS A SHARE WIDER THAN THE 41CENT LOSS POSTED A YEAR EARLIER ALSO OSHMAN'S SAID IT LIKELY WILL CLOSE SEVEN MORE STORES WITHIN THE NEXT SIX MONTHS AND IS EVALUATING A PLAN TO ACCELERATE THE CLOSING OF AN ADDITIONAL 30 TO 35 STORES IN THE NEXT TWO YEARS IF THIS PLAN IS CARRIED OUT IT WILL PROBABLY RECORD A PRETAX CHARGE OF 14 MILLION TO 16 MILLION IN THE FOURTH QUARTER NASDAQ NATIONAL MARKET STOCKS THAT HIT HIGHS FOR THE YEAR TO DATE TOTALED 71 WHILE 36 ISSUES HIT LOWS 9312070003 931207 LAUREL SAVINGS FORMS COMPANY ALLISON PARK PA LAUREL SAVINGS ASSOCIATION SAID IT COMPLETED THE FORMATION OF A HOLDING COMPANY CALLED LAUREL CAPITAL GROUP INC EACH SHARE OF LAUREL SAVINGS COMMON STOCK NOW REPRESENTS ONE SHARE OF LAUREL CAPITAL COMMON STOCK THE COMPANY SAID THE HOLDING COMPANY WILL INCREASE ITS FLEXIBILITY ALLOWING IT TO OFFER A BROADER ARRAY OF FINANCIAL SERVICES 9312070002 931207 FOREST CITY ENTERPRISES INC CLEVELAND FOREST CITY ENTERPRISES INC SAID IT FORMED A LIMITED PARTNERSHIP TO INVEST IN A SPECIFIC POOL OF LAND THE LIMITED PARTNERSHIP CALLED GRANITE DEVELOPMENT PARTNERS LP HAS 47 MILLION IN CAPITAL AND A PROVISION TO RAISE 3 MILLION MORE THROUGH WARRANTS FOREST CITY PURCHASED 93 MILLION IN DEBT FROM THE PARTNERSHIP AND CONTRIBUTED 10 MILLION IN LAND THE LIMITED PARTNERSHIP PURCHASED ANOTHER 10 MILLION IN LAND FROM FOREST CITY THE LAND IN THE LIMITED PARTNERSHIP IS MAINLY IN OHIO FLORIDA MICHIGAN AND NEVADA FOREST CITY IS A REALESTATE DEVELOPER BUILDER AND OPERATOR 9312070001 931207 SWITCH TO NATURAL LOOK IN MAKEUP IS A WASHOUT FOR SOME COSMETICS FIRMS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR A PARTY CELEBRATING THE OPENING OF HER SOHO FASHION BOUTIQUE YATI ZAINUDIN SPORTS THE CUTTING EDGE OF FASHION A BLACK LEATHER BUSTIER NO BLUSH AND NO LIPSTICK I DON'T LIKE PUTTING TOO MANY THINGS ON MY FACE SHE SAYS THE NATURAL LOOK IS CHANGING THE WAY MILLIONS OF WOMEN BUY AND WEAR MAKEUP IT HAS ONE EDICT WEAR LESS MAKEUP OR LOOK AS IF YOU ARE AS A RESULT WOMEN FROM HARRIED WORKING MOTHERS TO 13YEAROLD MTV FANATICS ARE SHUNNING MULTICOLOR EYELIDS AND MAGENTA CHEEKS AS TOO TIME CONSUMING ARTIFICIAL OR JUST PLAIN TACKY AND THAT'S TAKING A HEAVY TOLL ON THE COSMETICS INDUSTRY WHICH STILL RELIES ON COLOR PRODUCTS FOR THE BULK OF ITS SALES MARKETERS SAY THE NATURAL LOOK IS PARTLY A REACTION AGAINST THE FLASHY JOAN COLLINS GLAMOUR OF THE '80S I DON'T USUALLY LIKE A WHOLE BUNCH OF MAKEUP ON MY FACE IT FEELS AND LOOKS DIRTY TO ME SAYS BELINDA CARLISLE THE 35YEAROLD POP STAR WHOSE FACE WAS PHOTOGRAPHED AU NATUREL FOR THE COVER OF HER NEW ALBUM REAL WHEN I WAS REALLY YOUNG AND INSECURE I WOULD SLAP ON A FACE FULL OF MAKEUP JUST TO GO OUT TO THE MARKET NOW I'M OLDER AND MORE COMFORTABLE WITH MYSELF FOR LEVI STRAUSS & CO'S GOT TO BE REAL CAMPAIGN AD AGENCY FOOTE CONE & BELDING COMMUNICATIONS DECIDED TO USE LESSTHANPERFECTLOOKING ACTORS WEARING AS LITTLE MAKEUP AS POSSIBLE THE KIDS WE SELL JEANS TO ARE VERY QUICK TO REJECT ARTIFICE SAYS FOOTE CONE'S GEOFF THOMPSON THE DOWNBEAT ECONOMY HAS PLAYED A ROLE AS WELL KEEPING MANY CONSUMERS AWAY FROM THE PRICEY RESTAURANTS AND FANCY PARTIES THAT MIGHT SEND WOMEN SHOPPING FOR A GLAMOROUS LOOK BUT THESE TRENDS HAVE HURT THE COSMETICS INDUSTRY'S UNIT SALES FOR EXAMPLE SALES OF BLUSH FELL NEARLY 11 IN THE YEAR ENDED SEPT 4 ACCORDING TO NIELSEN MARKETING RESEARCH AND SALES OF EYESHADOW DROPPED 86 WHILE EYELINER/BROW PENCIL SALES FELL 41 SALES OF NONCOLOR PRODUCTS MEANWHILE WERE FLAT OR INCREASED SLIGHTLY WHILE THE NATURAL LOOK HAS AFFECTED EVERY BIG COSMETICS MERCHANDISER SOME HAVE BEEN HIT HARDER THAN OTHERS INDUSTRY EXECUTIVES SAY L'OREAL WHICH IS MARKETED IN THE US BY COSMAIR INC AND MAYBELLINE INC HEDGED THEIR LOSSES BY CATCHING THE TREND EARLY AND STRESSING THE NEUTRALTONED PRODUCTS IN THEIR LINES SALES OF MAYBELLINE'S CREME DE COCOA READ LIGHT BROWN EYESHADOW JUMPED 19 THIS YEAR MAYBELLINE UNDERSTANDS THIS TREND AND IS TRYING TO ADJUST ITS APPROACH AND COLORATIONS SAYS KEVIN BROWETT DIVISIONAL VICE PRESIDENT AT KMART CORP OTHERS WEREN'T SO FORTUNATE NOTABLY REVLON INC WHICH IS FAMOUS FOR GLAMOROUS DARK COLORS AND DOMINATES THE NAIL POLISH AND LIPSTICK CATEGORIES LAST YEAR WHILE RIVALS RACED TO PRESENT CLEANFACED MODELS AND NEUTRAL COSMETICS SHADES REVLON SPENT MILLIONS ON ITS SHAKE YOUR BODY ADVERTISING CAMPAIGN WHICH FEATURED DANCING MODELS WITH BRIGHT CRIMSON LIPS THERE WAS PROBABLY MORE RED IN THAT AD THAN THERE SHOULD HAVE BEEN CONCEDES KATHERINE DWYER THE NEWLY INSTALLED EXECUTIVE VICE PRESIDENT OF MARKETING FOR REVLON'S COSMETICS AND FRAGRANCES IN THE US FOR NEXT SPRING REVLON IS BETTING THAT CONSUMERS WILL HAVE TIRED OF BLAND BEIGES AND BROWNS THE COMPANY IS BACKING VERY SIGNIFICANT INCREASES IN MARKETING SPENDING FOR AN AMBITIOUS NEW COLOR CAMPAIGN THAT REVLON HOPES WILL CATAPULT IT BACK INTO THE FASHION FOREFRONT ACCORDING TO GEORGE FELLOWS CHAIRMAN OF REVLON'S US UNIT ENTITLED EXOTIKA THE LINE WILL FEATURE PLUMSHADED LIPSTICKS AND NAIL POLISHES WE'RE STARTING TO SEE THE EMERGENCE OF DARK NEUTRALS SAYS MS DWYER IT'S AN INCOMING TREND THAT WILL TAKE 18 TO 24 MONTHS TO HIT THE MAINSTREAM BUT SOME COSMETICS EXPERTS BELIEVE THE NATURAL LOOK WILL PERSEVERE DESPITE REVLON'S EFFORTS UNLIKE THE FASHION INDUSTRY WHERE A STYLE CAN COME AND GO IN A MATTER OF WEEKS TRENDS IN COSMETICS OCCUR FAR LESS OFTEN AND A SHIFT CAN LAST AS LONG AS A DECADE IT'S YOUR FACE YOU'RE DEALING WITH SAYS LINDA WELLS EDITOR IN CHIEF OF ALLURE MAGAZINE MAKEUP IS YOUR IDENTITY SO WOMEN ARE VERY RELUCTANT TO MAKE DRAMATIC OR QUICK CHANGES OTHERS POINT TO MORE FUNDAMENTAL CHANGES IN LIFESTYLES THAT SUGGEST THAT THE DAY OF THE 20STEP MAKEUP ROUTINE MAY BE ENDING BABY BOOMERS WHO MAY HAVE ONCE ENJOYED EXPERIMENTING WITH FANCIER LOOKS NO LONGER CAN EFFECT THE POSES OF THEIR YOUTH SAYS STEVE BARNETT A PRINCIPAL AT GLOBAL BUSINESS NETWORK WHICH TRACKS CONSUMER BEHAVIOR AND PEOPLE ARE WEARING CASUAL ATTIRE IN SITUATIONS THEY WOULDN'T HAVE 10 YEARS AGO OR EVEN FIVE YEARS AGO ADDS WALTER K LEVY A RETAILING CONSULTANT IN ADDITION MANY WORKING WOMEN SAY THEY SIMPLY DON'T HAVE TIME FOR ANYTHING BUT A NATURAL LOOK AT THE LOCKER ROOM OF A NEW YORK HEALTH CLUB FEW WOMEN SPEND MORE THAN THREE MINUTES ON THEIR MAKEUP I DON'T WEAR A LOT OF MAKEUP BECAUSE I RUN AROUND ALL DAY AND I DON'T HAVE TIME SAYS KATHERINE RICE A 24YEAROLD INVESTMENT BANKER AS SHE SLAPS ON EYELINER AND AN ORANGETONED BLUSH MARY LAUDATI A SALESPERSON SAYS SHE PUTS ON HER MAKEUP EVERY MORNING IN HER CAR WHILE COMMUTING FROM LONG ISLAND I WAIT FOR TRAFFIC POCKETS AND PICK UP WHERE I LEFT OFF SHE EXPLAINS FEMALE EXECUTIVES CLIMBING THE CORPORATE LADDER DECRY HEAVY MAKEUP AS OVERLY SEXY AND UNPROFESSIONAL VICKI W KRAMER DIRECTOR OF OPTIONS INC A PHILADELPHIABASED CAREER AND HUMAN RESOURCES CONSULTANCY SAYS SHE HAS ADVISED CLIENTS TO WEAR LESS MAKEUP THE SAME WAY WE ADVISE PEOPLE NOT TO WEAR EXTRAORDINARILY FLASHY JEWELRY FINALLY MANY WOMEN SAY THE NATURAL LOOK HAS EVOLVED INTO A SOURCE OF PRIDE AND SELFESTEEM WHEN YOU GET TO A CERTAIN POINT IN YOUR LIFE YOU TEND TO DO THINGS FOR YOURSELF SAYS CAROLE A PRESLEY A MEMPHIS TENN CONSULTANT I THINK ITS PART OF THE MATURING PROCESS GETTING COMFORTABLE WITH WHO YOU ARE AS A RESULT EVEN AS THEY'RE EMPHASIZING NEUTRAL LIP AND NAIL COLORS COSMETICS COMPANIES ARE STUMBLING OVER THEMSELVES TO INTRODUCE PRODUCTS IN OTHER AREAS PARTICULARLY SKINCARE LINES FOR BABY BOOMERS MAYBELLINE WHICH SUCCESSFULLY INTRODUCED ITS REVITALIZING FOUNDATION EARLIER THIS YEAR IS TARGETING FOR SPRING A NUMBER OF NEW REVITALIZING PRODUCTS INCLUDING FIVE DIFFERENT KINDS OF SKIN TREATMENTS AIMED AT CONSUMERS 35 YEARS AND OLDER REVLON IS INTRODUCING A PRODUCT CALLED AGE DEFYING MAKEUP NEXT SPRING AND INTRODUCED A SKINCARE LINE CALLED RESULTS THIS YEAR IN THE LONG TERM WE CLEARLY HAVE TO BE IN ALL ASPECTS OF THE BUSINESS SAYS REVLON'S MR FELLOWS WE CAN'T BE KNOWN SOLELY AS A COLOR COMPANY THAT'S NOT A SMART THING TO DO 9312070143 931119 LETTERS TO THE EDITOR THE CLINTON PLAN PURE ARTISTRY WHILE MOST AMERICAN HOUSEHOLDS AND BUSINESSES ARE DISCUSSING THE MERITS OF HEALTH CARE REFORM AND SEARCHING FOR USEFUL INSIGHTS ON THE ISSUE THE WALL STREET JOURNAL HAS OFFERED AN ARTIST'S RENDERING SEE ACCOMPANYING ILLUSTRATION WSJ NOV 19 1993 OF PRESIDENT CLINTON'S HEALTH CARE REFORM PLAN PROVIDED BY REP DICK ARMEY THE REPUBLICAN PARTY'S CAMPAIGN REELECTION CHIEF YOUR FUTURE HEALTH PLAN EDITORIAL PAGE OCT 13 IT IS NOT SURPRISING THAT WHEN VIEWED THROUGH REP ARMEY'S POLITICAL PRISM HEALTH CARE REFORM BECOMES A DISTORTED TANGLE IN FAIRNESS WHY NOT CONSIDER A COMPARATIVE SCHEMATIC OF REP BOB MICHEL'S MEDICAL IRA PLAN WHICH REP ARMEY HAS ENDORSED AS A BETTER ALTERNATIVE TO PRESIDENT CLINTON'S HEALTH SECURITY ACT CLEARLY FUN DIAGRAMS DO LITTLE TO CLARIFY OUR CHOICE ALL THE ARTWORK IN THE WORLD WILL DO LITTLE TO FIX A HEALTH CARE SYSTEM THAT IS SLOWLY PUSHING OUR BUSINESSES FAMILIES AND GOVERNMENT TO BANKRUPTCY THE PRESIDENT AND FIRST LADY HAVE DONE THE HARD WORK AND PUT TOGETHER A VIABLE PLAN BACKED BY TOUGH ANALYSIS RIGID ACCOUNTING AND HARD STATISTICS OTHERS WHO HAVE OFFERED THEIR OWN PLANS HAVE GIVEN US LITTLE MORE THAN ROUGH OUTLINES AND ABSTRACT PROPOSALS WITH NO CONCRETE DATA THE DIFFERENCE BETWEEN THE PRESIDENT'S PLAN AND THE MICHEL PLAN IS LIKE COMPARING AN ARCHITECTURAL BLUEPRINT WITH A PENCILED STICKFIGURE CARTOON THEY CERTAINLY SHOULD NOT BE CONSIDERED AS EQUALS THE CLINTON PLAN IS THE ONLY PLAN THAT GUARANTEES EVERY SINGLE AMERICAN HEALTH COVERAGE THAT CAN NEVER BE LOST OR TAKEN AWAY WITHOUT RAISING 500 BILLION IN NEW TAXES ONLY THE CLINTON PLAN DEFINES A COMPREHENSIVE SET OF BENEFITS GUARANTEES EXTENSIVE NOT BAREBONES COVERAGE ENDS LIFETIME LIMITS BANS DISCRIMINATION FOR PREEXISTING CONDITIONS AND GUARANTEES PRESCRIPTION DRUGS FOR SENIOR CITIZENS AND ONLY THE CLINTON PLAN ACHIEVES UNIVERSAL COVERAGE BY BUILDING ON THE EXISTING SYSTEM OF INSURANCE THROUGH THE WORKPLACE RATHER THAN RADICALLY ALTERING THE WAY MOST AMERICANS GET THEIR COVERAGE THE BOTTOM LINE IS THAT OUR DEBATE ON HEALTH CARE REFORM MUST BE BASED ON THE COMPREHENSIVE CLINTON PLAN SEE RELATED LETTER LETTERS TO THE EDITOR HE PUTS A FRIGHT WIG ON GOP HEALTH PLAN WSJ DEC 6 1993 9311190024 YY93 MM12 9312070140 931122 WHY I READ TO MY CHILDREN BY CHRISTOPHER DE VINCK MOST NIGHTS I READ ALOUD TO MY CHILDREN BEFORE THEY SLEEP MR POPPER'S PENGUINS MY FATHER'S DRAGON TREASURE ISLAND AND JAMES AND THE GIANT PEACH HAVE BEEN SOME OF THEIR FAVORITES OVER THE YEARS I HAVE BEEN DOING THIS SINCE MY ELDEST SON WAS SMALL AND MY REASONS ARE MANY OH I BELIEVE THE PSYCHOLOGIST JEAN PIAGET WHEN HE SPEAKS ABOUT ASSIMILATION CHILDREN PICKING UP INFORMATION THAT FITS IN WITH WHAT THEY ALREADY KNOW MY CHILDREN HAVE HEARD THOUSANDS OF DIFFERENT SENTENCE PATTERNS OVER AND OVER AGAIN AS THEY SAT BESIDE ME DURING THOSE MANY NIGHTS TO BE SURE MY CHILDREN HAVE PICKED UP NEW WORDS ALONG THE WAY WHEN MY OLDEST SON DAVID WAS FOUR YEARS OLD HE WALKED AROUND THE HOUSE STATING HE FELT SOPORIFIC AFTER HE HEARD ABOUT THE SOPORIFIC EFFECTS LETTUCE HAD ON BEATRIX POTTER'S SLOTHFUL RABBITS KAREN LEARNED WHAT A BUNGALOW WAS AS SHE LISTENED TO HOW UNCLE WIGGILY CRAWLED OUT FROM HIS HOME AT THE BEGINNING OF EACH NEW ADVENTURE OF COURSE IT IS TRUE THAT A RICH READING BACKGROUND ADDS TO A CHILD'S INTELLECTUAL BAGGAGE I HAVE BEEN AN ENGLISH TEACHER FOR THE PAST 16 YEARS AND I HAVE HAD FOR THE MOST PART TWO TYPES OF STUDENTS THOSE WHO HAVE A RICH PERSONAL BACKGROUND AND THOSE WHO HAVE THIS PERSONAL EXPERIENCE AND A WIDE READING EXPERIENCE ALL CHILDREN COME TO SCHOOLS WITH A WIDE DIVERSITY OF PERSONAL EXPERIENCES I WOULD SAY ONLY 10 ALSO COME WITH A WIDE READING BACKGROUND THE CHILD WITH THE WIDEST PERSONAL AND READING BACKGROUND SEEMS TO CARRY THE MOST INTELLECTUAL BAGGAGE INTO MY CLASSROOM YEAR AFTER YEAR THIS IS THE CHILD WHO EVENTUALLY SCORES THE HIGHEST ON THE VERBAL SECTION OF THE SATS WHO IS ABLE TO MAKE SUDDEN AND CLEAR CONNECTIONS BETWEEN BOOKS AND LIFE WHO HAS THE STRONGEST SENSE OF WHAT IT MEANS TO LIVE A LIFE OF REFLECTION WHO IS THE STRONGEST WRITER THE SAT IS A VERY BIASED TEST IT IS BIASED AGAINST THOSE WHO DO NOT READ THINKING IS LOOKING AT EXPERIENCES AND MAKING CONCLUSIONS WRITING IS THE PHYSICAL EVIDENCE OF OUR THINKING THE MORE WE EXPERIENCE THE MORE INFORMATION WE HAVE INSIDE OUR MINDS AND OUR HEARTS THE MORE INFORMATION WE HAVE THE BETTER CONCLUSIONS WE CAN MAKE ABOUT OUR OWN LIVES BUT I READ ALOUD TO MY CHILDREN EACH NIGHT FOR REASONS THAT GO BEYOND PIAGET VOCABULARY WRITING AND INFORMATION RETRIEVAL I WANT EIGHTYEAROLD MICHAEL TO TASTE THE CHOCOLATE AS WILLIE WONKA GUIDES THE CHILDREN ON A GRAND TOUR OF HIS FACTORY I WANT KAREN TO SMELL THE FLOWERS FRANCIE NOLAN'S FATHER BOUGHT FOR HER IN A TREE GROWS IN BROOKLYN I WANT MY CHILDREN TO FEEL THE HUNGER RICHARD WRIGHT ENDURED IN BLACK BOY I WANT MY SON DAVID TO SMACK HIS HAND SOMEDAY AGAINST BOO RADLEY'S HOUSE IN TO KILL A MOCKINGBIRD I WANT MY DAUGHTER TO FEEL THE MOONLIGHT AGAINST HER BARE BREASTS AS DID ANNIE IN JAMAICA KINKAID'S GLORIOUS LITTLE BOOK ANNIE JOHN I READ ALOUD TO MY CHILDREN BECAUSE I WANT THEM TO FEEL THE HAND OF IVAN ILLYICH AGAINST THEIR CHEEK JUST BEFORE HE DIES I WANT MY CHILDREN TO SOMEDAY RECEIVE THE BLESSING OF FATHER ZOSIMA IN BROTHERS KARAMAZOV I WANT MY CHILDREN TO BELIEVE THAT IT CAN INDEED RAIN FLOWERS AS IT DID IN ONE HUNDRED YEARS OF SOLITUDE I WANT MY CHILDREN TO WATCH SYDNEY CARTON WALK UP THE STEPS TO THE GUILLOTINE I WANT THEM TO CARRY ADDIE'S COFFIN ALONG WITH FAULKNER IN AS I LAY DYING I WANT MY CHILDREN TO LISTEN TO REB SAUNDERS IN THE CHOSEN I WANT THE WATER FROM THE PUMP IN THE MIRACLE WORKER TO RUN AGAINST THE SMALL HANDS OF DAVID KAREN AND MICHAEL MRS KELLER ANNIE SULLIVAN SCREAMS OUT WITH JOY TO HELEN'S MOTHER MRS KELLER MRS KELLER SHE KNOWS HELEN KELLER FINALLY LEARNED THAT THESE FUNNY LITTLE SYMBOLS A B C D MEAN WORDS SENTENCES LANGUAGE LIFE FREEDOM SHE KNOWS READING MAKES POSSIBLE THE CONNECTION BETWEEN OUR MINDS AND THE NEAR MAGICAL NOTIONS DRAWN UP FROM OUR IMPOSSIBLE HEARTS I ALSO READ TO MY CHILDREN BECAUSE I LIKE THE FEEL OF THEIR WARMTH AGAINST MY ARMS AND THE SOUND OF THEIR QUIET BREATHS AS THEY LISTEN TO MY VOICE CIRCLING AROUND THEM NIGHT AFTER NIGHT READING ALOUD TO CHILDREN EVERY DAY GIVES THEM THE WIDEST ENTRY TO THAT PLACE WE CALL FREEDOM READING ALOUD TO CHILDREN BEGINS THE SLOW PROCESS OF EDUCATION THAT ENDS IN PARENTS AND TEACHERS CELEBRATING THEY KNOW THEY KNOW THEIR HEARTS AND MINDS HAVE MADE THE CONNECTIONS OUR CHILDREN ARE FREE THEY KNOW MR DE VINCK IS THE AUTHOR OF AUGUSTA AND TRAB A CHILDREN'S NOVEL JUST PUBLISHED BY FOUR WINDS SEE RELATED LETTER LETTERS TO THE EDITOR LOVE OF READING MUST BE NURTURED WSJ DEC 6 1993 9311220047 YY93 MM12 9312070066 931119 LETTERS TO THE EDITOR LOONS WERE TOURISTS EARLY IN THE CENTURY THE NOV 2 LEISURE & ARTS ARTICLE BY MARIE WINN ABOUT LOONS ON NEW YORK'S CENTRAL PARK RESERVOIR IS A VERY TRENCHANT PIECE MAKING A GOOD AND IMPORTANT POINT UNFORTUNATELY IT INVOLVES AN ERROR IN A MATERIAL FACT IT WAS NOT IN 1992 THAT LOONS PAID THEIR FIRST VISIT EVER TO THE RESERVOIR LUDLOW GRISCOM'S BIRDS OF THE NEW YORK CITY REGION NEW YORK 1923 STATES COMMON LOON OCCASIONALLY NOTED FLYING OVER ONCE ON THE RESERVOIR MAY 4 1913 AND MAY 10 1914 GRISCOM MAY 8 1919 HIX MY OWN RECORDS SHOW THAT I AND MY MOTHER A WELLQUALIFIED OBSERVER SAW THIS BIRD APRIL 1922 1929 ON THE MIDDLE RESERVOIR NOW A PLAYFIELD AND APRIL 2127 1929 ON THE NORTH RESERVOIR THESE SIGHTINGS WERE WELLKNOWN IN THE LOCAL BIRDING FRATERNITY AND SHOULD APPEAR IN THE ARCHIVES OF THE LINNEAN SOCIETY MY MOTHER ALSO SAW THE LOON AGAIN ON THE RESERVOIR ON MAY 23 1939 I HAVE NOT LIVED IN NEW YORK FOR ALMOST 60 YEARS BUT I WOULD NOT BE SURPRISED IF THE COMMON LOON HAD NOT PAID ALMOST AS MANY VISITS AS I HAVE SEE RELATED LETTER LETTERS TO THE EDITOR THE LINNAEAN SOCIETY WSJ DEC 7 1993 9311190025 YY93 MM12 9312070065 931108 REVIEW & OUTLOOK EDITORIAL GO FISH THE POWER CENTERS OF ENVIRONMENTALISM ARE SHIFTING INCREASINGLY AUTHORITY IS BEING EXERTED BY BUREAUCRACIES ONCE THOUGHT TO BE THE FRIENDLY ARM OF NATURISM SUCH AS THE US FISH AND WILDLIFE SERVICE STATE OFFICES MAY BE KNOWN AS FISH AND GAME LOOK AT THE NUMBERS THE OVERALL FEDERAL CIVILIAN WORK FORCE HASN'T GROWN MUCH RECENTLY BUT THE NUMBER OF REGULATORS AT FISH AND WILDLIFE HAS ALMOST DOUBLED SINCE 1985 SO FINDS THE CENTER FOR THE STUDY OF AMERICAN BUSINESS AT WASHINGTON UNIVERSITY IN ST LOUIS BY COMPARISON THE CSAB SHOWS THE EPA REGULATORY STAFF UP LESS THAN 40 IN THE SAME PERIOD SCARY ENOUGH COSTS HAVE RISEN EVEN FASTER AT BOTH AGENCIES AND THE BUSH ADMINISTRATION WAS A PARTICULARLY FERTILE PERIOD BETWEEN 198892 FISH AND WILDLIFE'S ANNUAL APPROPRIATION ROSE TO 764 MILLION FROM 426 MILLION AS CALIFORNIA SANK INTO A RECESSION AFTER 1990 ITS FISH AND GAME BIOLOGISTS ROSE TO 461 FROM 350 THE ESSENCE OF THE EXPLANATION TAKES THREE WORDS ENDANGERED SPECIES ACT WITH HUNDREDS GOING ON THOUSANDS OF TINY BIOLOGICAL VARIATIONS IN THE PROTECTIVE CUSTODY OF THIS LAW FISH AND WILDLIFE'S PURVIEW HAS EXPANDED ENORMOUSLY WHENEVER ACTIVITY INVOLVES OR IMPINGES ON THESE SPECIES F&W IS THE AGENCY ON THE SPOT MANAGERS OF THE GOVERNMENT'S VAST AND EXPANDING LAND HOLDINGS AND OF COURSE PRIVATE PROPERTY OWNERS MUST SHOW DUE DEFERENCE TO THESE SUDDENLY POWERFUL BUREAUCRATS THIS ROLE IS TAKING ON INTERNATIONAL ASPECTS STAFFERS OF THE AGENCY RECENTLY RELEASED A REPORT WARNING THAT ECONOMIC ACTIVITY SPURRED BY NAFTA WOULD ENTAIL ASSORTED ADDITIONAL ENVIRONMENTAL DANGERS ON THE BORDER WHICH COULD BE HANDLED BUT ONLY WITH AN INFUSION OF NEW F&W PERSONNEL ANOTHER SOURCE OF ITS GROWTH IS TRENDY CONCERN ABOUT THE SWAMPS MARSHES BOGS AND PUDDLES NOW KNOWN AS WETLANDS THE AGENCY SHARES WITH EPA AND THE CORPS OF ENGINEERS THE DUTY OF KEEPING HUMAN INTERLOPERS OUT OF THESE SACRED AREAS IF THAT WEREN'T ENOUGH THE NATIONAL BIOLOGICAL SURVEY BRUCE BABBITT'S TOP PRIORITY AT THE INTERIOR DEPARTMENT WILL BE SENDING FORTH F&W'S FINEST TO DOCUMENT FLORA AND FAUNA ACROSS THE LAND MR BABBITT SAYS THAT WILL LEAD TO MORE RATIONAL ECOSYSTEM PLANNING THE HOUSE JUST APPROVED THE BIOLOGICAL SURVEY BILL WHICH NOW GOES TO THE SENATE UNLIKE MANY GOVERNMENT DEPARTMENTS THE FEDERAL AND STATE FISH AND WILDLIFE UNITS ARE ABLE TO RAISE MONEY FOR THEMSELVES IN A MANNER OF SPEAKING AS WELL AS SPEND IT F&W SEEKS CRIMINAL AND CIVIL FINES AGAINST PEOPLE WHO TRAFFIC IN PROTECTED ANIMALS AND THEIR REMAINS MEANWHILE THIS POLITICALLY CORRECT AGENCY IMPEDES THE EFFORTS OF SOME ZOOS AND AQUARIUMS TO IMPORT SUCH CREATURES FOR A CURIOUS PUBLIC TO VIEW THE FEDS ALSO DRAW A 10 EXCISE ON SALES OF HUNTINGRELATED ARMS WHILE AT THE STATE LEVEL LICENSE FEES POUR IN TO DATE THESE BRANCHES OF OFFICIAL ENVIRONMENTALISM HAVE HAD A PRETTY FREE RIDE WITH LITTLE OF THE ORGANIZED INDUSTRY OPPOSITION THAT HOLDS EPA PARTLY IN CHECK EXCEPT FOR THE NATIONAL WILDERNESS INSTITUTE IN WASHINGTON AND A FEW OTHER PRIVATELY FUNDED WATCHDOGS NO ONE'S MAKING A FUSS YET A BRUSH WITH ONE OF THESE AGENCIES SAY BY A TANKERTRUCKER WHO SUFFERS A SPILL THAT TRICKLES INTO A DRAINAGE IS ENOUGH TO CONVINCE ANYONE OF THE SEVERE POLICE POWERS THEY WIELD AS THE AGENTS OF CONSERVATION BECOME EVER MORE ENMESHED IN CONTENTIOUS POLICY THEY SHOULD EXPECT THE POLITICAL FIRE TO ESCALATE AND HAVE NO DOUBT ENVIRONMENTALISM'S MOST RAPIDLY ADVANCING FRONT IS GOING LOOKING FOR RESISTANCE SEE RELATED LETTER LETTERS TO THE EDITOR ECOPLANS THAT AVOID TRAIN WRECKS WSJ DEC 7 1993 9311080178 YY93 MM12 9312070063 931105 BUYING BUSINESS SOME WEAPONS MAKERS ARE SAID TO CONTINUE ILLICIT FOREIGN OUTLAYS NOW A SERIES OF INVESTIGATIONS IS UNDER WAY IN AN EFFORT TO ENFORCE THE 1977 BAN SCRAMBLE IN AN AILING INDUSTRY BY ANDY PASZTOR AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL THE PROBLEM OF ILLICIT OVERSEAS PAYMENTS BY AMERICAN DEFENSE CONTRACTORS SUPPOSEDLY RESOLVED IN THE LATE 1970S IS BACK THEN AGAIN MAYBE IT NEVER WENT AWAY JUST A FEW YEARS AGO IN TAIPEI RICHARD HEI A MIDDLEMAN RENOWNED FOR HIS TIES TO TAIWAN'S MILITARY WAS SHUTTLING TAIWANESE GENERALS TO AMERICAN AEROSPACE EXECUTIVES' HOTEL ROOMS FOR MIDNIGHT CHATS OVER DRINKS OFTEN THE EXECUTIVES RECALL PLEASANTRIES TURNED TO BUSINESS PAPERS THAT THE FORMER MILITARY PILOT FILED WITH US TRADE OFFICIALS IN TAIPEI INDICATE THAT HE CROWED ABOUT HIS CUT ON US ARMS SALES TO TAIWAN 20 MILLION IN JUST THREE YEARS FROM CAIRO ANOTHER WELLCONNECTED CONSULTANT A RETIRED EGYPTIAN AIR FORCE GENERAL NAMED ALY MANSOUR ARRANGED FOR A PARADE OF EGYPTIAN OFFICERS TO VISIT A GENERAL ELECTRIC CO RADAR PLANT IN SYRACUSE NY SOME OF THE EGYPTIANS WERE ENTERTAINED AT A 5000 CLAMBAKE AND ON EXPENSESPAID WEEKENDS IN NEW YORK CITY AND A TOUR OF NIAGARA FALLS MR MANSOUR'S FIRM COLLECTED FAT FEES FOR HELPING GE WIN AN EGYPTIAN AIRDEFENSE RADAR CONTRACT VALUED AT 125 MILLION GE ITSELF SAYS NOW THE PARTYING MAY BE OVER IT'S BEING SQUELCHED BY A SPREADING SERIES OF NEW INVESTIGATIONS AND PROSECUTIONS INTO ALLEGEDLY ILLICIT PAYMENTS BY US COMPANIES A TELEDYNE INC UNIT IN FILINGS BY PROSECUTORS IN FEDERAL COURT IN LOS ANGELES ADMITS THAT IT HID FROM US AND TAIWANESE AUTHORITIES 32 MILLION IN ILLICIT COMMISSIONS PAID TO MR HEI'S TINY CONSULTING FIRM BETWEEN 1986 AND 1990 LITTON INDUSTRIES INC FACES POSSIBLE PROSECUTION ACCORDING TO LAWENFORCEMENT AND INDUSTRY OFFICIALS FOR ALLOWING FOUR OF ITS DIVISIONS TO SURREPTITIOUSLY FUNNEL MILLIONS MORE IN ALLEGEDLY ILLEGAL FEES TO THE CONSULTANT AND LORAL CORP WHICH SOLD MISSILES TO BOTH TAIWAN AND EGYPT IS BEING INVESTIGATED BY THE FEDERAL BUREAU OF INVESTIGATION THE PENTAGON AND JUSTICE DEPARTMENT FOR WHAT THE PENTAGON CONSIDERS IMPROPERLY COMBINING THE ACCOUNTING FOR THE DEALS AND PAYING AT LEAST 13 MILLION TO MR MANSOUR'S FIRM THE BUDDING SCANDAL IN TAIPEI ALONG WITH SIMILAR INVESTIGATIONS ROILING POLITICAL WATERS IN EGYPT SOUTH KOREA AND ISRAEL REFLECTS A DRAMATIC RESURGENCE OF US LAWENFORCEMENT INTEREST IN OVERSEAS INFLUENCE PEDDLING TAIWANESE AUTHORITIES HAVE HAD TO SHUN MR HEI AND COOPERATE WITH THE EXPANDING INQUIRY IN CAIRO INVESTIGATORS UNCOVERED SUSPICIOUS CASH PAYMENTS INFLATED FEES AND OTHER IMPROPRIETIES INVOLVING MR MANSOUR WHO WAS EGYPTIAN PRESIDENT HOSNI MUBARAK'S FRIEND AND FELLOW OFFICER WHEN BOTH SERVED IN THE MILITARY AS YOUNG MEN IN SOUTH KOREA US COMPANIES COMPLAIN THAT A MUSHROOMING CORRUPTION SCANDAL PROMPTING THE ARREST OR FIRING OF DOZENS OF GENERALS AND SENIOR CIVILIAN OFFICIALS HAS PARALYZED THAT COUNTRY'S DEFENSEPROCUREMENT BUREAUCRACY DEFENSE COMPANIES ARE FINDING IT HARD TO ESCAPE THE TAINT OF THE INVESTIGATIONS JUST LAST MONTH UNITED TECHNOLOGIES CORP FACED FRESH ALLEGATIONS BY CONGRESSIONAL INVESTIGATORS THAT EXECUTIVES AT ITS PRATT & WHITNEY UNIT LOOKED THE OTHER WAY WHILE ISRAELI DEFENSE OFFICIALS SIPHONED OFF TENS OF MILLIONS OF DOLLARS IN US MILITARY AID OVER THE YEARS A UNITED TECHNOLOGIES EXECUTIVE RECENTLY TOLD A HOUSE SUBCOMMITTEE THAT THE COMPANY IS EMBARRASSED THAT IT WAS AN UNWITTING PARTICIPANT IN A DECEPTION CONTRIVED BY THE OFFICIALS FEDERAL GRAND JURIES FROM LOS ANGELES TO WASHINGTON DC ARE DELVING INTO THE VARIOUS ALLEGATIONS A TASK FORCE OF AGENTS AND PROSECUTORS HAS BEEN ASSEMBLED SPECIFICALLY TO INVESTIGATE ALLEGATIONS OF PAYOFFS TO DEFRAUD THE PENTAGON A HOUSE SUBCOMMITTEE HEADED BY DEMOCRATIC REP JOHN DINGELL OF MICHIGAN IS SCHEDULED TO HOLD HEARINGS SOON THAT WILL FOCUS ON A WHISTLEBLOWER'S ALLEGATIONS THAT MR MANSOUR BRIBED EGYPTIAN MILITARY OFFICERS TO CAPTURE THE RADAR CONTRACT FOR GE GE LORAL AND LITTON ALL DENY VIOLATING THE LAW BUT GE SUSPENDED FOUR EXECUTIVES AND QUIETLY ADMITTED TO THE JUSTICE DEPARTMENT REPEATED VIOLATIONS OF ITS OWN PROCEDURES AND CERTAIN PENTAGON RULES IN DEALING WITH MR MANSOUR SOME PAYMENTS A GE REPORT CONCEDES MIGHT BE DEEMED AN IMPROPER POLITICAL CONTRIBUTION WITH THE US GOVERNMENT PAYING PART OF THE TAB NEVERTHELESS THE COMPANY SAYS THE DECISION TO VOLUNTARILY DISCLOSE THE ALLEGATIONS AGAINST MR MANSOUR TO THE GOVERNMENT IN 1992 COMPLIED FULLY WITH ITS INTERNAL ETHICS CODE MR MANSOUR COULDN'T BE REACHED FOR COMMENT DESPITE REPEATED ATTEMPTS THE SUBJECT OF PAYMENTS ABROAD IS RESURFACING JUST AS AMERICA'S DEFENSE INDUSTRY IS INCREASINGLY RELYING ON FOREIGN ORDERS TO KEEP PLANTS RUNNING AND CUSTOMER ACCESS HAS BECOME MORE IMPORTANT THAN EVER IN THE HIGHLY COMPETITIVE GLOBAL ARMS MARKET FOR MANY COMPANIES THE NEW ALLEGATIONS OF INFLUENCEPEDDLING OVERSEAS THREATEN TO TURN INTO A LEGAL AND PUBLICRELATIONS NIGHTMARE BACK HOME IT'S SIMPLY LOGICAL THAT THERE WILL BE MORE OF THESE FOREIGN CORRUPTION CASES AS DOMESTIC ORDERS DRY UP SAYS CHARLIE PARSONS HEAD OF THE FBI'S LOS ANGELES OFFICE WHICH IS INVESTIGATING MR HEI WITH DEFENSE COMPANIES DESPERATE TO HANG ON BY FINDING NEW BUSINESS AROUND THE WORLD HE ADDS AGENTS ARE FINDING MORE AND MORE INSTANCES OF KICKBACKS AND SUSPICIOUS PAYMENTS OUTSIDE OUR BORDERS SUCH ABUSES WERE SUPPOSED TO HAVE BEEN ENDED DURING THE CARTER ADMINISTRATION EXPLICITLY OUTLAWING PAYOFFS TO FOREIGN OFFICIALS OFTEN MADE THROUGH MIDDLEMEN THE 1977 FOREIGN CORRUPT PRACTICES ACT GAVE PROSECUTORS AN IMPORTANT ENFORCEMENT CLUB HUGE CORPORATE FINES AND LENGTHY PRISON SENTENCES FOR INDIVIDUAL OFFENDERS BUT AFTER A FEW EARLY HIGHPROFILE PROSECUTIONS FEDERAL WATCHDOGS SHIFTED THEIR EFFORTS ELSEWHERE MOREOVER UNCOVERING UNAUTHORIZED COMMISSIONS IS ESPECIALLY HARD BECAUSE OUTSIDE CORPORATE AUDITORS AND THE PENTAGON'S OWN TEAM OF AUDITORS IN MANY CASES SEE ONLY WHAT APPEARS TO BE LEGITIMATE CONSULTING AGREEMENTS THOSE DOCUMENTS WOULDN'T ALERT AUDITORS TO SECRET OR ORAL AGREEMENTS TO PAY CONSULTANTS IN RETURN FOR ILLICIT HELP IN OBTAINING BUSINESS IN FOREIGN COUNTRIES SO DESPITE ALL THE PAINSTAKINGLY CRAFTED REGULATIONS AND CONTRARY TO CONTRACTORS' PLEDGES TO TIGHTEN INTERNAL ETHICS RULES MANY BIG COMPANIES CONTINUED DOING BUSINESS THE OLD WAY FOR EXAMPLE THROUGH THE LATE 1980S GE CERTIFIED TO WASHINGTON AND CAIRO THAT IT WASN'T PAYING ANY COMMISSIONS TO MR MANSOUR SPECIFICALLY FOR HIS HELP IN SNARING THE RADAR CONTRACT BUT ACCORDING TO A CONFIDENTIAL REPORT PREPARED EARLIER THIS YEAR BY GE'S OUTSIDE COUNSEL A 275 MILLION SUBCONTRACT WITH MR MANSOUR'S FIRM UNITRA WAS PARTLY INTENDED TO RECOGNIZE THE MARKETING EFFORTS OF UNITRA PRIOR TO GE'S WINNING THE CONTRACT THE 133PAGE REPORT SUBMITTED TO THE JUSTICE DEPARTMENT BUT NEVER MADE PUBLIC ADDS THAT GE'S MANAGEMENT WAS SO EAGER TO HIRE MR MANSOUR'S FIRM THAT IT AGREED TO PAY ARTIFICIALLY HIGH FEES BEFORE THE SCOPE OF WORK UNDER THE SUBCONTRACT WAS DEFINED AND WITHOUT A CAREFUL REVIEW TO ENSURE THAT THE PRICE WAS REASONABLE MR MANSOUR TOLD INVESTIGATORS THAT SINCE BECOMING A CONSULTANT HE HAS MAINTAINED AN ARM'SLENGTH RELATIONSHIP WITH MR MUBARAK TELEDYNE INDUSTRIES WHICH PLEADED GUILTY TO FRAUD CHARGES LATE THIS SUMMER RELIED ON LARGELY THE SAME STRATEGY IN TAIWAN THE TELEDYNE INC UNIT PROMISED TO PAY MR HEI A MONTHLY RETAINER OF AS MUCH AS 65000 WITHOUT REQUIRING HIM TO FILE ANY REPORTS OR JUSTIFY HIS FEES ONCE THE COMPANY RECOGNIZED ITS POTENTIALLY HUGE LEGAL LIABILITY ITS OFFICIALS CREATED PHONY DOCUMENTS AND TRIED IN OTHER WAYS TO HIDE THEIR PAYMENT OF ILLEGAL COMMISSIONS ACCORDING TO INVESTIGATORS AND PAPERS FILED WITH THE CONTRACTOR'S GUILTY PLEA IN LOS ANGELES FEDERAL COURT LAST AUGUST MOREOVER WILLIAM RUTLEDGE WHO WAS THEN A TELEDYNE EXECUTIVE VICE PRESIDENT AND BECAME ITS CHAIRMAN LAST MARCH PERSONALLY APPROVED PAYING MR HEI'S FIRM 25 MILLION TO SETTLE A CIVIL LAWSUIT DEMANDING PAYMENT OF BACK COMMISSIONS ACCORDING TO LAWENFORCEMENT OFFICIALS IN AN INTERVIEW MR HEI CONFIRMS HE IS COOPERATING WITH THE US INVESTIGATION OF HIS TELEDYNE DEALINGS AND HIS CONTINUING WORK FOR LITTON WHICH DECLINES TO COMMENT BUT HE DENIES RECEIVING ILLEGAL COMMISSIONS FROM ANY COMPANY HE CONTENDS THAT HIS FIRM PROVIDED US CLIENTS ONLY ADMINISTRATIVE SERVICES SUCH AS ARRANGING FOR INTERPRETERS AND ACCOMMODATIONS AND HE DISMISSES HIS BOASTS OF EARNING 20 MILLION IN FEES BY SAYING WE MAY HAVE OVERSOLD OURSELVES HE CALLS TOTALLY RIDICULOUS PROSECUTORS' ASSERTIONS THAT HE ARRANGED LATENIGHT MEETINGS TO LAND CONTRACTS FOR US WEAPONS MAKERS TELEDYNE SAYS ITS CONTACT WITH MR HEI REPRESENTS OLD CONDUCT IT SAYS THE COMPANY IS COMMITTED TO HAVING THE BEST ETHICS AND COMPLIANCE PROGRAM POSSIBLE MR RUTLEDGE WON'T DISCUSS HIS ROLE IN SETTLING MR HEI'S 1990 CIVIL SUIT A 1993 DEFENSE DEPARTMENT AUDIT CONCLUDES THAT LORAL'S PAYMENTS TO MR MANSOUR'S FIRM IN EGYPT VIOLATED PENTAGON RESTRICTIONS AND THAT LORAL'S AEROSPACE UNIT SHOULD BE REQUIRED TO JUSTIFY THE PROPRIETY OF THE COMMISSIONS THE COMPANY HAS ACKNOWLEDGED TURNING OVER RECORDS TO INVESTIGATORS PROBING THE 252 MILLION MISSILE CONTRACTS LORAL CONTENDS THAT THE EGYPTIAN COMMISSIONS WERE ENTIRELY PROPER BECAUSE THEY WERE DISCLOSED EARLY ON TO THE US GOVERNMENT AND CAME OUT OF THE COMPANY'S PROFITS NOT TAX DOLLARS BUT LORAL HAS DECIDED TO TERMINATE ITS RELATIONSHIP WITH MR MANSOUR ANYWAY PENTAGON AUDITORS SAY THEY HAVEN'T BEEN ABLE TO ASCERTAIN WHETHER COMMISSIONS WERE INCLUDED IN THE ORIGINAL CONTRACT PRICE BOTH EGYPT AND TAIWAN HAVING SPENT A TOTAL OF ABOUT 63 BILLION ON US WEAPONRY SINCE 1986 WERE NATURAL TARGETS FOR MARKETING CAMPAIGNS BY US CONTRACTORS FOR MANY YEARS INVESTIGATORS CONTEND CAIRO WAS WHERE US CONTRACTORS MAY HAVE GONE TO THE GREATEST LENGTHS TO GAIN ENTREE TO THE MILITARY AND AN EDGE OVER THEIR RIVALS IN THIS FRENETIC WORLD MR MANSOUR STOOD OUT FOR HIS IMPECCABLE CONNECTIONS AS A YOUNG MAN HE WENT TO THE MILITARY ACADEMY AND FLEW JETS WITH MR MUBARAK THEY SERVED OVERLAPPING STINTS IN MOSCOW IN THE MID1960S AFTER LEAVING THE EGYPTIAN AIR FORCE AND GOING INTO CONSULTING MR MANSOUR BOASTED ABOUT RECRUITING A STABLE OF RECENTLY RETIRED GENERALS TO HELP GE LORAL LOCKHEED CORP HARRIS CORP ITT CORP AND OTHER CORPORATE CLIENTS LAND SOME 15 BILLION OF NEW CONTRACTS OSTENSIBLY MR MANSOUR'S JOB WAS TO SUPPLY INFORMATION ABOUT COMPETITORS SET UP ROUTINE MEETINGS WITH EGYPTIAN BUREAUCRATS AND PROVIDE GENERAL SUPPORT SERVICES SUCH AS TRANSLATORS AND OFFICE SPACE FOR CLIENTS IN REALITY CONTRACTORS SAW HIS VALUE IN STARKLY DIFFERENT TERMS WHEN GE WAS DEBATING WHETHER TO HIRE HIS FIRM INHOUSE MEMOS STRESSED HIS EXCELLENT RELATIONSHIPS WITH THE MINISTER OF DEFENSE AND KEY MINISTRY PERSONNEL AROUND THE SAME TIME THE AMERICAN EMBASSY IN CAIRO REASSURED PROSPECTIVE CLIENTS THAT MR MANSOUR ENJOYS A GOOD REPUTATION IN THE BUSINESS COMMUNITY AND WAS AN EXCELLENT TRADE CONTACT FOR US FIRMS THE PRAISE STOPPED ABRUPTLY IN MARCH 1992 ZIE HAK A GE ENGINEER IN CAIRO JOLTED TOP MANAGEMENT WITH A WHISTLEBLOWER'S LETTER TO CHAIRMAN JOHN F WELCH JR CONTENDING THAT THE INNOCUOUSSOUNDING DESCRIPTIONS OF MR MANSOUR'S ACTIVITIES WERE A SHAM IN HIS FIRST PRESS INTERVIEW ABOUT THE MATTER MR HAK ALLEGES GE PURPOSELY INCLUDED 11 MILLION OF FAT IN MR MANSOUR'S 275 MILLION SUBCONTRACT TO MAKE EVERY EGYPTIAN OFFICER HAPPY IMMEDIATELY AFTER RECEIVING MR HAK'S LETTER GE BEGAN INVESTIGATING AS REQUIRED UNDER CORPORATECOMPLIANCE POLICIES DRAFTED BY ONETIME COMPANY LAWYER ZOE BAIRD PRESIDENT CLINTON'S ILLFATED FIRST CHOICE FOR ATTORNEY GENERAL ONE OF MR HAK'S MAIN ALLEGATIONS WAS THAT MR MANSOUR WON OVER THE CHAIRMAN OF THE EGYPTIAN MILITARYPROCUREMENT COMMITTEE THAT AWARDED GE THE RADAR CONTRACT IN MARCH 1988 BY PROMISING HIM A LUCRATIVE JOB UPON HIS RETIREMENT MAJ GEN IHAB EL MOUSALAMY IN FACT DID RETIRE LATER THAT YEAR AND WENT TO WORK SOON AFTERWARD AS A CONSULTANT FOR MR MANSOUR'S FIRM THE REPORT BY GE'S OUTSIDE COUNSEL DISCLOSED MR MANSOUR ACCORDING TO THAT REPORT DENIES MAKING ANY PRECONTRACT PROMISES OF EMPLOYMENT BUT ACKNOWLEDGES PAYING THE GENERAL 64700 FROM NOVEMBER 1988 TO AUGUST 1992 FOR EGYPTIAN OFFICERS EARNING ONLY A FEW THOUSAND DOLLARS A YEAR SUCH PAYMENTS ARE A HUGE WINDFALL MR HAK'S LETTER ALSO ALLEGED THAT GE THROUGH MR MANSOUR PAID 25000 TO ANOTHER MEMBER OF THE RADARPROCUREMENT COMMITTEE MAJ GEN MOHAMED MOKHTAR IN THE INTERVIEW MR HAK SAYS HE WAS TOLD ABOUT THE ALLEGED BRIBE BY ANOTHER EGYPTIAN OFFICER AND A GE COLLEAGUE HUSSEIN RIZK WHO REPRESENTED THE COMPANY IN EGYPT AND IS A NEPHEW OF MR MANSOUR THE WHISTLEBLOWER QUOTES MR RIZK AS CALLING GEN MOKHTAR GE'S BACK DOOR TO GETTING THINGS DONE IN CAIRO MR RIZK DOESN'T RECALL ANY SUCH CONVERSATION AND MR MANSOUR DENIES BRIBING THE GENERAL ACCORDING TO THE GE REPORT NEITHER GEN MOUSALAMY NOR GEN MOKHTAR COULD BE REACHED FOR COMMENT EVEN WITH HELP FROM THE EGYPTIAN EMBASSY IN WASHINGTON AND THE US EMBASSY IN CAIRO THESE ARE RETIRED INDIVIDUALS A MUBARAK GOVERNMENT SPOKESMAN SAYS IF THEIR DEALINGS WITH AMERICAN COMPANIES ARE BAD THAT'S THEIR PROBLEM IN THE INTERVIEW MR HAK SAYS SEVERAL EGYPTIAN OFFICERS TOLD HIM THE DAILY STIPENDS THEY RECEIVED FROM MR MANSOUR OR HIS ASSOCIATES DURING TRIPS TO THE US WERE DUPLICATIVE AND THAT THEY RETURNED HOME WITH THE MONEY UNSPENT HE ALSO ALLEGES THAT ONE COLONEL WHO RECEIVED SUCH PAYMENTS INSTRUCTED FELLOW OFFICERS TO IGNORE TEST DEFECTS THE BRIBERY ACCUSATION MAY BE TOO OLD AND CIRCUMSTANTIAL TO WARRANT PROSECUTION BUT GE'S OWN REPORT CONFIRMS MANY OF MR HAK'S OTHER ASSERTIONS THE WHISTLEBLOWER CONTENDS AMONG OTHER THINGS THAT MR MANSOUR'S CONSULTING RESPONSIBILITIES AMOUNTED TO LITTLE MORE THAN HAVING TO ARRANGE FOR THE TRAVEL AND LIVING EXPENSES OF OFFICERS WHO WENT TO GE'S SYRACUSE PLANT TO OBSERVE TESTS AND LEARN HOW TO OPERATE THE AIRDEFENSE RADARS MORE THAN 50 OFFICERS VISITED THE US RUNNING UP ABOUT HALF A MILLION DOLLARS OF EXPENSES THE US GOVERNMENT THE GE REPORT CONCEDES PAID PART OF THE ENTERTAINMENT TAB THE PENTAGON'S INTERPRETATION OF THE RULES IS THAT ONLY EGYPT WAS PERMITTED TO PAY FOR THEIR TRAVEL AND ENTERTAINMENT IN THEIR OWN REPORT GE'S LAWYERS UNEQUIVOCALLY CONCLUDED THAT MR MANSOUR NEVER SHOULD HAVE BEEN ALLOWED TO PAY HUNDREDS OF THOUSANDS OF DOLLARS MUCH OF IT IN CASH TO REPRESENTATIVES OF A FOREIGN GOVERNMENT INSTEAD OF TRYING TO POLICE MR MANSOUR'S WORK CONSCIENTIOUSLY ACCORDING TO THE REPORT GE EXECUTIVES BRUSHED ASIDE INTERNAL WARNINGS AND SIMPLY ATTEMPTED TO JUSTIFY THE FEES THE CONSULTANT DEMANDED WE HAVE FOUND NO INDICATION THAT ANYONE WITHIN GE PERFORMED A CAREFUL REVIEW OF THE UNITRA SUBCONTRACT TO ENSURE THAT GE WAS RECEIVING FULL VALUE FOR ITS MONEY THE REPORT SAYS MARTIN MARIETTA CORP WHICH AGREED TO PURCHASE GE'S AEROSPACE BUSINESS LATE IN 1992 SAYS IT KNEW OF THE MANSOUR INVESTIGATION AT THE TIME MARTIN MARIETTA SAYS GE AGREED TO COVER UP TO 25 MILLION IN PENALTIES GROWING OUT OF THE INVESTIGATION GE REFERS QUESTIONS TO MARTIN MARIETTA AND SAYS MARTIN MARIETTA IS NOW RESPONSIBLE FOR THE MATTER IN ADDITION TO SEEKING DOCUMENTS FROM GE INCLUDING RECORDS OF MR WELCH'S INVOLVEMENT IF ANY WITH MR MANSOUR PETER CLARK THE WASHINGTONBASED PROSECUTOR IN CHARGE OF THE INQUIRY HAS SUBPOENAED RECORDS FROM LOCKHEED AND LORAL A LOCKHEED SPOKESMAN SAYS THE COMPANY HAS FULLY COOPERATED BY TURNING OVER DOCUMENTS TO THE JUSTICE DEPARTMENT TELEDYNE ALSO GOT INTO TROUBLE IN EGYPT BY RELYING ON ANOTHER PROMINENT CONSULTANT STARTING IN 1980 CONGRESSIONAL INVESTIGATORS SAY TELEDYNE PAID MILLIONS TO SAHARA OVERSEAS SERVICES CO A CONSULTING FIRM RUN BY RETIRED GEN SAYED ALI NADIM INCLUDING A 20 OVERHEAD MARKUP ON ALL SERVICES AND A LEASE FOR AN EGYPTIAN OFFICE THAT ALLEGEDLY COST TELEDYNE 10 TIMES THE GOING RATE FIVE YEARS INTO THE ARRANGEMENT ONE INTERNAL TELEDYNE MEMO PUT IT SUCCINCTLY SENIOR MANAGEMENT'S SECRET AGREEMENTS WITH GEN NADIM COMBINED WITH HIS PROCLIVITY FOR APPEALING DIRECTLY TO THE PRESIDENT OF TELEDYNE ELECTRONICS ANOTHER TELEDYNE INC UNIT RAISED A RED FLAG OF POTENTIAL VIOLATIONS THINGS ARE NOT BUSINESSLIKE AND TEND TO GET VERY MESSY THE DECEMBER 1985 DOCUMENT CONCLUDED THE WARNINGS DIDN'T DETER TELEDYNE FROM CONTINUING TO RELY ON GEN NADIM ACCORDING TO THE COMPLAINT IN A STILLSEALED WHISTLEBLOWER SUIT FILED BY A FORMER TELEDYNE PROGRAM MANAGER IN LOS ANGELES FEDERAL COURT THE COMPANY KNEW THAT GEN NADIM ILLEGALLY PURCHASED INFLUENCE IN EGYPT TO HELP LAND A 23 MILLION EGYPTIAN AIR FORCE CONTRACT THE 1992 LAWSUIT WHICH THE JUSTICE DEPARTMENT IS CONSIDERING JOINING ALSO CONTENDS THAT THE COMPANY TRIED TO HIDE 35 MILLION IN COST OVERRUNS AND FALSIFIED TESTS ON EGYPTBOUND ELECTRONIC EQUIPMENT TELEDYNE SAYS IT WON'T COMMENT ON PENDING LITIGATION GEN NADIM SAYS THAT HE NEVER PROVIDED INSIDE BIDDING INFORMATION TO TELEDYNE AND THAT EGYPTIAN OFFICIALS HAVE DETERMINED THAT HIS FIRM DIDN'T VIOLATE ANY EGYPTIAN LAWS THOUSANDS OF MILES AWAY TELEDYNE WAS DEEPLY INVOLVED WITH MR HEI LAUNCHED WITH LESS THAN 200000 MR HEI'S T & P CO CLAIMED TO HAVE NEGOTIATED COMMISSIONS FOR HELPING TELEDYNE OBTAIN AT LEAST SIX TAIWANESE CONTRACTS RANGING FROM COMPUTERS FOR JET FIGHTERS TO ANTISUBMARINE DEVICES FOR HELICOPTERS TELEDYNE TRIED TO DISGUISE MANY OF THOSE PAYMENTS AS POSTCONTRACT CONSULTING FEES ACCORDING TO ITS GUILTY PLEA THEN THINGS FELL APART IN MID1988 FEDERAL INVESTIGATORS SAY THEY BEGAN PORING OVER TELEDYNE'S BOOKS AS A RESULT OF WIRETAP EVIDENCE OBTAINED IN THE NATIONWIDE PENTAGON CORRUPTION PROBE DUBBED OPERATION ILL WIND WITHIN A YEAR THE COMPANY ADMITTED ITS ROLE IN THE SCHEME TO INFLUENCE PENTAGON CONTRACTS ABOUT THE SAME TIME FEDERAL AGENTS CONDUCTED A SURPRISE RAID ON THE COMPANY'S NORTHRIDGE CALIF FACILITY AS PART OF A SEPARATE CRIMINAL INQUIRY CARTING AWAY TRUCKLOADS OF DOCUMENTS RECOGNIZING ITS EXPOSURE OVERSEAS TELEDYNE SUDDENLY DECIDED TO CUT OFF MR HEI'S MONTHLY CHECKS THE COMPANY APPROACHED THE STATE DEPARTMENT AND ADMITTED FOR THE FIRST TIME IMPROPERLY PAYING COMMISSIONS TO MR HEI BUT THE DISCLOSURE COVERED LESS THAN HALF ITS TOTAL PAYMENTS WHAT TELEDYNE LEFT OUT WERE OTHER COMMISSION ARRANGEMENTS ON GOVERNMENTTOGOVERNMENT SALES WHERE GRUMMAN CORP AND UNITED TECHNOLOGIES' SIKORSKY HELICOPTER UNIT WERE THE PRIME CONTRACTORS IN AN INTERVIEW MR HEI CONFIRMS HE IS COOPERATING WITH THE US INVESTIGATION OF HIS TELEDYNE DEALINGS AND HIS CONTINUING WORK FOR LITTON WHICH DECLINES TO COMMENT BUT HE DENIES RECEIVING ILLEGAL COMMISSIONS FROM ANY COMPANY HE CONTENDS THAT HIS FIRM PROVIDED US CLIENTS ONLY ADMINISTRATIVE SERVICES SUCH AS ARRANGING FOR INTERPRETERS AND ACCOMMODATIONS AND HE DISMISSES HIS BOASTS OF EARNING 20 MILLION IN FEES BY SAYING WE MAY HAVE OVERSOLD OURSELVES HE CALLS TOTALLY RIDICULOUS PROSECUTORS' ASSERTIONS THAT HE ARRANGED LATENIGHT MEETINGS TO LAND CONTRACTS FOR U S WEAPONS MAKERS AT THE BEGINNING OF FEBRUARY 1990 THE ENRAGED CONSULTANT WENT PUBLIC WITH HIS COMPLAINTS HE SHOCKED TELEDYNE AND THE REST OF SOUTHERN CALIFORNIA'S DEFENSE INDUSTRY BY FILING A CIVIL ACTION IN LOS ANGELES COUNTY COURT SEEKING COMMISSIONS HE CLAIMED WERE DUE BARELY THREE WEEKS AFTER THE CIVIL ACTION WAS FILED MR RUTLEDGE THEN IN CHARGE OF TELEDYNE'S MANUFACTURING OPERATIONS SIGNED THE 25 MILLION CHECK SETTLING THE SUIT A SPOKESWOMAN FOR THE COMPANY SAYS MR RUTLEDGE WAS NOT INVOLVED AT ALL WITH MR HEI AND SIGNED THE CHECK BECAUSE HE WAS JUST THERE AT THE TIME THE CONTRACTOR THREW IN THE TOWEL WITHOUT EVER FORMALLY RESPONDING TO MR HEI'S ASSERTIONS OR FILING A SINGLE DOCUMENT TO CONTEST HIS CLAIMS JEREMY MARK CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR YOU'RE FLOGGING A DEAD HORSE WSJ DEC 7 1993 9311050031 YY93 MM12 9312070062 931102 ENVIRONMENT BY DAVE KANSAS NEW CHROMIUM RESEARCH HINTS AT GREATER DANGERS FROM EXPOSURE TO THE CHEMICAL A RECENT STUDY BY MAX COSTA DIRECTOR OF THE NEW YORK UNIVERSITY MEDICAL CENTER'S DEPARTMENT OF ENVIRONMENTAL MEDICINE SUGGESTS A DIRECT LINK BETWEEN CHROMIUM EXPOSURE AND LUNG CANCER MOREOVER DR COSTA'S STUDY OF HUDSON COUNTY NJ RESIDENTS UNCOVERED DISTINCT CHANGES IN DNA PROTEINS THAT HE SAYS COULD ONLY DERIVE FROM CHROMIUM THE COUNTY ONCE HOUSED SEVERAL CHROMIUM CHEMICAL FACILITIES THESE RESULTS INDICATE THAT THESE INDIVIDUALS LIVING IN HUDSON COUNTY NJ HAVE HAD EXTREMELY HIGH EXPOSURES PROBABLY OF A CHRONIC NATURE TO CHROMATE WROTE DR COSTA IN A LETTER TO STATE ENVIRONMENTAL OFFICIALS HE SAID HE BELIEVES THE INDIVIDUALS TESTED SHOWED A VERY HIGH RISK OF DEVELOPING LUNG CANCER DR COSTA'S RESEARCH WHICH HAS BEEN SUBMITTED TO PROFESSIONAL JOURNALS FOR PUBLICATION SUGGESTS THAT A BIOMARKER TEST CAN MEASURE CHROMIUM EXPOSURE THIS COULD BECOME A VERY VALUABLE TOOL IN TERMS OF UNDERSTANDING THE EXTENT OF DANGER FROM CHROMIUM SAYS GILBERT S OMENN DEAN OF THE UNIVERSITY OF WASHINGTON SCHOOL OF PUBLIC HEALTH DR OMENN SAYS THE STUDY MAY PROVIDE EVIDENCE FOR SEEKING STRICTER WORKPLACE CONTROLS FOR THOSE FACING POSSIBLE EXPOSURE TO CHROMIUM THE EXTENT OF THE DANGER OF THE ALTERED DNA RECORDED BY DR COSTA REMAINS UNCERTAIN BUT MANY SCIENTISTS INCLUDING DR COSTA BELIEVE THAT THE DAMAGE MAY AFFECT DNADIRECTED REPLICATION OF CELLS LEADING TO MUTATION AND THEN TO CANCER OTHERS CONTEND THAT THE DANGER MAY BE OVERSTATED BECAUSE ALTERATIONS COULD BE OCCURRING ON DEAD CELLS RESIDENTS OF PAPUA NEW GUINEA HAVE ESTABLISHED A KEY WILDLIFE PRESERVE HOME TO SOME OF THE LAST REMAINING UNDISTURBED RAINFOREST LAND IN THE WORLD PAPUA NEW GUINEA NOW HAS A 1000SQUAREMILE WILDLIFE RESERVE THAT COULD SET A NEW TONE FOR INTERNATIONAL CONSERVATION EFFORTS NYZS/THE WILDLIFE CONSERVATION SOCIETY BASED IN NEW YORK SPENT THE PAST SEVERAL YEARS NEGOTIATING WITH RESIDENTS FROM 20 PAPUA NEW GUINEA CLANS ATTEMPTING TO ESTABLISH THE RESERVE THIS CONTRASTS SHARPLY WITH TRADITIONAL CONSERVATION EFFORTS THAT HAVE APPEALED DIRECTLY TO NATIONAL GOVERNMENTS TO MANDATE RESERVES SUCH A TOPDOWN APPROACH TENDS TO ALIENATE NATIVE PEOPLES LIVING IN PROTECTED AREAS CONSERVATIONISTS SAY THE INDIGENOUS PEOPLES' LAND RIGHTS ARE VERY IMPORTANT SAYS DON HENRY DIRECTOR OF THE SOUTH PACIFIC PROGRAM AT THE WORLD WILDLIFE FUND WASHINGTON YOU CAN'T JUST BUILD A FENCE AND PUSH PEOPLE OUT THAT'S THE OLDFASHIONED VIEW THE WILDLIFE CONSERVATION SOCIETY COUNTERED MONETARY INDUCEMENTS OFFERED BY LOGGING AND DEVELOPMENT CONCERNS BY ESTABLISHING RESEARCH CENTERS IN THE AREA HELPING THE PEACE CORPS ESTABLISH WORK IN THE REGION AND PROMOTING ECOTOURISM THIS IS A TREMENDOUS OPPORTUNITY BECAUSE PROBABLY AS MUCH AS 70 OF THE COUNTRY IS STILL IN NATURAL FOREST COVER SAYS DONALD BRUNING CHAIRMAN OF ORNITHOLOGY AT THE WILDLIFE CONSERVATION SOCIETY MOST PLACES AROUND THE WORLD DON'T GET INTO PROTECTING MAJOR HABITATS UNTIL THEY'RE MOSTLY GONE THE RESERVE IS EXPECTED TO PROTECT SEVERAL SPECIES OF THE RARE BIRD OF PARADISE ALONG WITH OTHER BIRDS ANIMALS AND PLANTS THE WILDLIFE CONSERVATION SOCIETY IS ALSO TRYING TO CREATE CONSENSUSES FOR SIMILAR RESERVES IN THE CONGO VENEZUELA ZAIRE AND PANAMA EXPORTERS OF CLEANERENERGY TECHNOLOGIES STRUGGLE TO GAIN GROUND IN EAST ASIA DEMAND FOR ELECTRICITY IS GROWING FASTER IN EAST ASIA ESPECIALLY ALONG THE PACIFIC RIM THAN ANYWHERE ELSE IN THE WORLD AND DEMAND FOR POWERGENERATION EQUIPMENT HAS SPURRED US CLEANERENERGY COMPANIES TO PURSUE BUSINESS IN THE REGION FOR INSTANCE CHINA SPENDS ABOUT 10 BILLION TO 14 BILLION A YEAR ON ELECTRICPOWER PROJECTS AND INSTALLED CAPACITY IS EXPECTED TO NEARLY DOUBLE BY 2000 ANALYSTS SAY CHINA IS ALSO EXPECTED TO SPEND MORE THAN 90 BILLION ON NEW POWER EQUIPMENT BY THE TURN OF THE CENTURY BUT POLITICAL CONTROVERSIES ALONG WITH EXTRA COSTS ASSOCIATED WITH DEVELOPING POWERGENERATING FACILITIES THAT CAUSE LESS POLLUTION HAVE HAMPERED SOME EFFORTS FOR INSTANCE INSTALLING SCRUBBERS TO REDUCE EMISSIONS GENERALLY COSTS MORE THAN 100 MILLION IT HAS NOT BEEN AN EASY SELL SAYS ROBERT E NICKELL TECHNICAL DIRECTOR AT SGI INTERNATIONAL A COMPANY WORKING ON COALCLEANING TECHNOLOGY DR NICKELL'S COMPANY HAS RECENTLY SIGNED AGREEMENTS WITH THE GOVERNMENT OF SHANXI PROVINCE AND WITH LIAONING PROVINCE TO EVALUATE COALS FOR POSSIBLE TREATMENT COALRELATED PROGRAMS ARE EXTREMELY CRUCIAL IN THE EAST ASIAN REGION BECAUSE OF THE VAST RESERVES THERE CHINA FOR INSTANCE USES ABOUT 11 BILLION TONS OF COAL ANNUALLY MORE THAN ANY OTHER NATION AND 40 OF ITS NEW ENERGY SPENDING IS EXPECTED TO GO INTO COALFIRED POWER SOME CLEANAIR TECHNOLOGIES INCLUDE TREATING COAL TO REDUCE HAZARDOUS SULFURDIOXIDE AND NITROGENOXIDE EMISSIONS OR WASHING THE COAL TO REDUCE WATER CONTENT CURRENTLY CHINA WASHES LESS THAN 20 OF ITS COAL AND A NICKEL FOR A STRAW IZZY'S AN OHIO DELIRESTAURANT CHAIN CHARGES CUSTOMERS 11 CENTS EXTRA FOR TAKEOUT ORDERS IF CUSTOMERS FAIL TO PROVIDE THEIR OWN PACKAGING THE RESTAURANT SAYS THE CHARGE IS INTENDED TO HEIGHTEN CUSTOMER AWARENESS OF THE ENVIRONMENTAL COSTS OF PACKAGING HONESTLY CLEAN THE LINCOLN TUNNEL'S WHITE WALLS HAVE BEGUN TO APPROACH THAT COLOR AGAIN FOR THE FIRST TIME IN MORE THAN 20 YEARS LAYERS OF SOOT AND GRIME ARE BEING REMOVED BY AN ENVIRONMENTALLY SAFE CLANING LIQUID FROM DOMINION RESTORATION CALLED DR90 THAT CONTAINS NO DETERGENTS OR MINERAL ACIDS THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH OWNS AND MANAGES THE HUDSON RIVER TUNNEL SAYS IT SELECTED THE CLEANING LIQUID AFTER TESTING 48 COMPOUNDS SEE RELATED LETTER LETTERS TO THE EDITOR ONE FORM OF CHROMIUM IS NUTRITION SUPPLEMENT WSJ DEC 7 1993 9311020166 YY93 MM12 9312070124 931015 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9312070121 931013 YOUR FUTURE HEALTH PLAN BY DICK ARMEY THE AMERICAN HEALTH SECURITY ACT REDUCES THE BURDEN OF PAPERWORK AND ADMINISTRATION REGULATORY REQUIREMENTS DECLINE AND CONSUMERS EXPERIENCE A STREAMLINED AND SIMPLER SYSTEM AS WITH THE BUDGET EARLIER THIS YEAR THERE IS A DISPARITY BETWEEN WHAT THE ADMINISTRATION CLAIMS ABOUT ITS HEALTH CARE PLAN AND WHAT IT DOES A CLOSE ANALYSIS OF THE 239PAGE DRAFT CIRCULATING ON CAPITOL HILL REVEALS THAT THE CLINTON HEALTH PLAN WOULD CREATE 59 NEW FEDERAL PROGRAMS OR BUREAUCRACIES EXPAND 20 OTHERS IMPOSE 79 NEW FEDERAL MANDATES AND MAKE MAJOR CHANGES IN THE TAX CODE THE ACCOMPANYING CHART SEE ACCOMPANYING ILLUSTRATION WSJ OCT 13 1993 IS A SIMPLIFIED VERSION OF THE PLAN THE ACCOMPANYING GLOSSARY CITES SPECIFIC REFERENCES TO THE PAGE NUMBER IN THE DRAFT WHERE THE FUNCTIONS OF AN AGENCY OR PROGRAM ARE DESCRIBED UNLESS THERE ARE TOO MANY REFERENCES TO MENTION FOR CABINET LEVEL DEPARTMENTS OR THE FUNCTIONS ARE NOT DESCRIBED IN DETAIL SOME LOCAL FUNCTIONS IN FAIRNESS IT SHOULD BE NOTED THAT NOT ALL THE BOXES ON THE CHART ARE NEW CREATIONS SOME ARE EXISTING AGENCIES OR PROGRAMS GIVEN NEW ROLES IN OVERSEEING AND REGULATING THE NEW CLINTON HEALTH CARE BUREAUCRACY THE FEDERAL GOVERNMENT NOW SPENDS 42 CENTS OUT OF EVERY HEALTH CARE DOLLAR THE PLAN RELIES LARGELY ON THE VAST EXPANSION OF EXISTING POWERS A PICTURE'S WORTH A THOUSAND WORDS AND THIS FLOW CHART MAKES IT CLEAR THAT THE CLINTON PLAN IS A BUREAUCRATIC NIGHTMARE THAT WILL ULTIMATELY RESULT IN HIGHER TAXES REDUCED EFFICIENCY RESTRICTED CHOICE LONGER LINES AND A MUCH MUCH BIGGER FEDERAL GOVERNMENT AHCPR AGENCY FOR HEALTH CARE POLICY AND RESEARCH COLLECTS AND ANALYZES MEDICAL DATA SUPPLIED BY PORTS RESEARCH ACTIVITIES ARE CONDUCTED THROUGH INTRAMURAL AND EXTRAMURAL PROGRAMS USING THE MECHANISMS OF GRANTS CONTRACTS AND COOPERATIVE AGREEMENTS P CHA COUNTY HEALTH AUTHORITIES MONITORS HEALTH CARE IMPLEMENTATION AT THE COUNTY LEVEL DOD DEPARTMENT OF DEFENSE MAINTAINS AND OPERATES HEALTH CARE SYSTEM WITH DOCTORS AND HOSPITALS SEPARATE FROM THE CLINTON HEALTH CARE PLAN DOL DEPARTMENT OF LABOR REGULATES ALL CORPORATE ALLIANCES AND MONITORS PERFORMANCE OF CORPORATE AND REGIONAL ALLIANCE GRIEVANCE PROCEDURES GLOBAL BUDGET GOVERNMENTIMPOSED LIMIT ON HEALTH CARE SPENDING PER YEAR CORPORATE ALLIANCES ARE FORMED BY EMPLOYERS WITH MORE THAN 5000 EMPLOYEES TO PROVIDE HEALTH BENEFITS TO ELIGIBLE EMPLOYEES AND DEPENDENTS EITHER THROUGH A CERTIFIED SELFFUNDED EMPLOYEE BENEFIT PLAN OR THROUGH CONTRACTS WITH STATECERTIFIED HEALTH PLANS PP HMO HEALTH MAINTENANCE ORGANIZATION PROVIDER PLAN A MANAGED CARE PLAN THAT LIMITS CHOICE OF PHYSICIANS IN EXCHANGE FOR LOWER COSTS M&M MEDICARE AND MEDICAID GOVERNMENT HEALTH INSURANCE PROGRAMS FOR ELDERLY AND POOR AMERICANS RESPECTIVELY WITH COMBINED ANNUAL EXPENDITURES OF 276 BILLION AND RISING NCGME NATIONAL COUNCIL ON GRADUATE MEDICAL EDUCATION RATIONS NUMBER OF MEDICAL STUDENTS SPECIALIZING IN CERTAIN FIELDS BASED ON THE NATIONAL NEED FOR NEW PHYSICIANS IN SPECIFIC SPECIALTIES P PPO PREFERRED PROVIDER ORGANIZATION NETWORK OF PHYSICIANS AND HOSPITALS THAT HAVE ENTERED INTO AN ARRANGEMENT WITH AN INSURANCE COMPANY TO PROVIDE CARE FOR LOWER COSTS PWBA PENSION WELFARE AND BENEFITS ADMINISTRATION REGULATES HEALTH BENEFIT PLANS BY VIRTUE OF ADMINISTERING THE EMPLOYEE RETIREMENT INCOME SECURITY ACT ERISA WHICH WOULD BE EXPANDED TO INCLUDE FIDUCIARY AND ENFORCEMENT REQUIREMENTS FOR EMPLOYERS AND OTHERS SPONSORING HEALTH BENEFIT PLANS IN CORPORATE ALLIANCES P TREAS TREASURY DEPARTMENT LEVIES TAXES TO FUND GOVERNMENTRUN HEALTH SYSTEM VA DEPARTMENT OF VETERANS AFFAIRS RUNS INDEPENDENT HEALTH CARE SYSTEM FOR AMERICAN MILITARY VETERANS REP ARMEY R TEXAS IS CHAIRMAN OF THE HOUSE REPUBLICAN CONFERENCE SEE RELATED LETTER LETTERS TO THE EDITOR WHERE ARE THE DOCTORS WSJ NOV 1 1993 SEE RELATED LETTER LETTERS TO THE EDITOR THE CLINTON PLAN PURE ARTISTRY WSJ NOV 19 1993 SEE RELATED LETTER LETTERS TO THE EDITOR HE PUTS A FRIGHT WIG ON GOP HEALTH PLAN WSJ DEC 6 1993 9310130082 9311010093 9311240044 YY93 MM11 YY93 MM12 9312070048 931022 LOS ANGELES WOMAN TAKES ON THE HOODS INVADING HER HOOD MARY LOU HOLTE WAS ATTACKED AND DECIDED TO FIGHT BACK THE VIGILANTE OF VAN NUYS BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL VAN NUYS CALIF IN SOME WAYS MARY LOU HOLTE IS JUST ANOTHER CRIME STATISTIC FIVE YEARS AGO HER FORD PINTO WAS STOLEN THEN SHE WAS ASSAULTED IN AN ATTEMPTED RAPE SHE SCREAMED AND FOUGHT AND THE ATTACKER FLED BUT MS HOLTE HASN'T STOPPED FIGHTING SINCE SHE NOW WALKS HER NEIGHBORHOOD STREETS AT NIGHT WAGING A ONEWOMAN WAR AGAINST CRIME SHE MONITORS DRUG DEALERS PIMPS AND GANG MEMBERS AND REPORTS WHAT SHE SEES TO THE POLICE AT 5FOOT4 AND 110 POUNDS THE 45YEAROLD MS HOLTE OFTEN GOES NOSE TO CHEST WITH THOSE SHE VIEWS AS CREEPS AND DEMANDS THAT THEY SHAPE UP OR GET OUT OF HER NEIGHBORHOOD HER NEIGHBORHOOD IN THE VAN NUYS SECTION OF LOS ANGELES'S SPRAWLING SAN FERNANDO VALLEY WAS ONCE A RELATIVELY QUIET WORKINGCLASS AREA IN THE PAST DECADE THOUGH IT HAS ATTRACTED GANGS DRUGS AND PROSTITUTION POLICE SAY LIKE MANY OTHER CITY DWELLERS MS HOLTE IS ANGRY AND FRIGHTENED ABOUT WHAT IS HAPPENING AROUND HER URBAN LIFE SEEMS TO GET WORSE EACH YEAR THE STREETS ARE MORE DANGEROUS THE SIDEWALKS ARE DIRTIER THERE ARE MORE OF THEM WHOEVER THEY MIGHT BE BUT UNLIKE MOST WHO FEEL THAT WAY MS HOLTE TRANSLATES HER THOUGHTS INTO ACTION TO MANY PEOPLE MS HOLTE IS A LOCAL HERO A JOAN OF ARC SAYS ONE NEIGHBOR I ALWAYS FEEL MORE COMFORTABLE WHEN I SEE MARY LOU AROUND SAYS JAMES ZAMBITO ANOTHER RESIDENT A COP TELLS WITH A TOUCH OF DISBELIEF OF WATCHING HER AT 2 AM RUNNING AFTER A COUPLE OF SUSPECTS IN A SHOOTING POLICE SAY MS HOLTE HAS HELPED GET PAY PHONES REMOVED THAT WERE BEING USED BY DRUG DEALERS AND HELPED CLEAN UP A LOCAL 7ELEVEN STORE THE STORE HAD BEEN SELLING ALCOHOL TO MINORS AND BECOME A SITE FOR DRUG DEALS PUBLIC DRUNKENNESS AND PROSTITUTION AUTHORITIES PUT THE STORE ON PROBATION AND RESTRICTED ITS HOURS MARY LOU REALLY DOES SOME GOOD SAYS TIM MCBRIDE A LOS ANGELES POLICE CAPTAIN WHO HAS WORKED WITH HER SHE ANTAGONIZES THE BAD GUYS MS HOLTE PRONOUNCED HOLTEE HAS RECEIVED SEVERAL CIVIC AWARDS AND HAS BEEN CURSED THREATENED AND BEATEN ONE ASSAULT LEFT HER WITH CHRONIC NECK PAIN BUT HER DETERMINATION REMAINS INTACT IT'S A DANGEROUS WORLD AND IT DOESN'T DO ANY GOOD TO HIDE SHE SAYS WITH A SHRUG MS HOLTE WHO LIVES ON STATE DISABILITY PAYMENTS DUE TO A CONGENITAL LUNG DEFECT FORMED TOWNKEEPERS ACTION GROUP IN 1988 FOLLOWING THE ATTEMPTED RAPE SHE WENT DOORTODOOR RECRUITING MEMBERS MEETINGS ARE HELD AT A RETIREMENT HOME THE CROWD USUALLY SEVERAL DOZEN TENDS TO BE OVERWHELMINGLY OLDER AND MOSTLY WHITE IN A NEIGHBORHOOD THAT HAS SEEN THE PROPORTION OF NONWHITES DOUBLE IN THE PAST DECADE TO SOME 40 MS HOLTE'S CRITICS INCLUDING SOME POLICE SAY SHE IS AN ERRANT VIGILANTE WHO CAUSES MORE TROUBLE THAN SHE PREVENTS SOME CRITICS SAY SHE AND HER SUPPORTERS SEE NONWHITES BEHIND EVERY PROBLEM PAULA CAMPBELL A FIELD CONSULTANT FOR SOUTHLAND CORP FRANCHISER OF THE 7ELEVEN STORE CHAIN CALLS MS HOLTE A PREJUDICED WOMAN WHO TRIES TO TAKE LAW AND ORDER INTO HER OWN HANDS AT THE 7ELEVEN STORE THAT MS HOLTE TOOK ON MS CAMPBELL SAYS MS HOLTE WOULD APPROACH BLACKS IN THE STORE TO QUESTION THEM ABOUT THEIR ID THE STORE'S OWNER ABDUL GHULAMHUSSAIN PETITIONED A STATE COURT IN LOS ANGELES FOR A RESTRAINING ORDER AGAINST MS HOLTE LAST YEAR IN IT HE SAID SHE REPEATEDLY HARASSED AND INTIMIDATED CUSTOMERS BY INTERROGATING THEM REGARDING THEIR TYPE OF EMPLOYMENT PLACE OF RESIDENCE AND REASONS FOR SHOPPING IN MY STORE SHE ALSO ACCUSED CUSTOMERS OF BEING DRUG DEALERS AND PROSTITUTES HE SAID A RESTRAINING ORDER WAS GRANTED MS HOLTE IN RESPONSE GOT THE COURT TO ORDER THE STORE OWNER TO STAY AWAY FROM HER AS WELL MS HOLTE DENIES HAVING A RACIAL BIAS SHE SAYS SHE HAS BEEN ASSAULTED BY A WHITE A BLACK AND A HISPANIC MS HOLTE CAN OFTEN BE FOUND AT ORVILLE'S DOUGHNUT SHOP WHICH IS ALSO A LOCAL HANGOUT FOR SOME OF HER ADVERSARIES I WANT YOU OUT OF HERE A BEARDED SHIRTLESS MAN SHOUTS AT HER LATE ONE AFTERNOON RECENTLY HE HAS HAD CONFRONTATIONS WITH MS HOLTE BEFORE AND HE LOOMS THREATENINGLY OVER HER BUT SHE DOESN'T BUDGE AND HE LEAVES CURSING MS HOLTE GIVES A CHEERY WAVE TO A PRETTY YOUNG WOMAN WHO RETURNS THE GREETING SHE'S A HOOKER MS HOLTE CONFIDES SHE GIVES A YOUNG BOY A COLD STARE HE FLIPS AN OBSCENE GESTURE BACK SEARCH AND PJ TWO TEENAGERS SIT DOWN AND CHAT WITH HER ABOUT A CONTRACT THAT SUPPOSEDLY HAS BEEN PUT OUT ON A LOCAL PIMP WHEN PATROLLING THE SURROUNDING STREETS MS HOLTE CARRIES A NOTEBOOK AND PEN A LONGHANDLED FLASHLIGHT THAT DOUBLES AS A CLUB AND A SMALL CAN OF GREEN SPRAY PAINT TO FEND OFF AND MARK ANYONE WHO TRIES TO ATTACK HER LATE ONE NIGHT AT A DARKENED LARGELY EMPTY MINIMALL A 1970SMODEL CAR CARRYING SOME TEENAGERS DRIVES THROUGH THE PARKING LOT MS HOLTE MARCHES TOWARD THEM TO GET THE CAR'S LICENSE NUMBER THE VEHICLE'S OCCUPANTS SHOOT HER HARD LOOKS AND DRIVE OFF THEY ARE PROBABLY CRIPS SHE SAYS REFERRING TO A GROUP OF BLACK STREET GANGS MS HOLTE'S ROUNDS INCLUDE THE MOTELS ALONG BUSY SEPULVEDA BOULEVARD YOU HAVE PROSTITUTION HERE SHE ASKS ONE NIGHT MANAGER ACCUSINGLY HE NERVOUSLY ASSURES HER THAT SUCH THINGS AREN'T TOLERATED BUT AS MS HOLTE IS LEAVING SHE SEES A PROSTITUTE SHE KNOWS NAMED NICKI EMERGING FROM THE MOTEL WEARING A BLACK HALTER TOP AND LEOPARDDESIGN PANTS NICKI SAYS SHE HAS JUST FINISHED A TRICK MS HOLTE MAKES A NOTE THOUGH SHE HEARTILY DISAPPROVES OF WHAT THEY DO MS HOLTE SAYS SHE EMPATHIZES WITH MANY OF THE PROSTITUTES WHO SHE SEES AS VICTIMS TOO MS HOLTE SHOWS NO SYMPATHY TO ANYONE SHE CONSIDERS A CREEP SHE FOLLOWS A DRUNK WHO WANDERS INTO A LOCAL RESTAURANT THEN TAKES AWAY HIS BOTTLE OF VODKA WHEN HE LEAVES TO GO TO THE BATHROOM ON A STREET CORNER SHE CONFRONTS A TALL BEEFY GUY HOLDING AN OPEN BEER BOTTLE I DON'T WANT YOU DRINKING OUT HERE SHE SAYS YOU THE POLICE HE SHOOTS BACK NO BUT I KNOW THEM REAL WELL SHE SAYS THE MAN GIVES A DISMISSIVE SNORT AND LEAVES MS HOLTE GIVES SPECIAL ATTENTION TO THE CHILDREN OF THE STREET SHE HAS TWO SONS IN THEIR 20S BY A HUSBAND SHE SAYS DESERTED HER SHE SAYS SHE HASN'T SEEN THE YOUNGER SON SINCE HE LEFT HOME SEVERAL YEARS AGO A JUNIOR TOWNKEEPERS GROUP SHE TRIED TO START FIZZLED AFTER BYSTANDERS HECKLED AN ANTIGRAFFITI MARCH STILL SHE KEEPS TRYING ONE DAY AT ORVILLE'S SHE BUTTONHOLES A YOUTH NAMED CARLTON WHO DESCRIBES HIMSELF AS A FORMER TAGGER OR GRAFFITI SPRAYER MARY LOU MAKES EVERYONE BEHAVE HE SAYS BUT WHEN MS HOLTE URGES HIM TO HELP HER IDENTIFY CURRENT TAGGERS HE FLATLY REFUSES UNDETERRED MS HOLTE IS SOON BACK OUT WALKING HER BEAT I CAN'T SAVE THE WORLD OR LOS ANGELES OR EVEN VAN NUYS SHE SAYS BUT IF I CAN HELP CLEAN UP ONE LITTLE BIT I WILL BE HAPPY SEE RELATED LETTER LETTERS TO THE EDITOR A ONEWOMAN ARMY FUNDED BY THE STATE WSJ DEC 7 1993 9310220089 YY93 MM12 9312070008 931012 CORPORATE FOCUS CLAIMS OF BAD WATER CAUSE BAD BLOOD IN PENNSYLVANIA UTILITIES IN OTHER OLDER CITIES MAY SOON FACE WOES LIKE PG&W IN SCRANTON BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL SCRANTON PA IN THIS OLD MINING TOWN PEOPLE PAY THE HIGHEST RATES FOR WATER IN THE STATE AND SOME OF THE HIGHEST IN THE NATION BUT FEW EVER DRINK WHAT THEY PAY FOR THE WATER FROM PENNSYLVANIA GAS & WATER CO TASTES OVERCHLORINATED WHITES IN THE LAUNDRY COME OUT YELLOW SAYS THELMA HOWE SCANNING THE BOTTLED WATER SECTION OF A SUPERMARKET I DON'T SEE MYSELF DRINKING IT IN THE NEXT FIVE YEARS I HATE IT FOR A DECADE SCRANTON RESIDENTS HAVE BEEN AT WAR WITH PG&W WHICH WAS FINED AS A RESULT OF A 1983 OUTBREAK OF GIARDIA A SEVERE WATERBORNE INTESTINAL ILLNESS A UNIT OF PENNSYLVANIA ENTERPRISES INC OF WILKESBARRE PG&W HAS STRUGGLED TO UPGRADE ITS FILTRATION AND WATERMAIN SYSTEM BUT A TRUCE WITH CUSTOMERS AND REGULATORS IS NOWHERE IN SIGHT RATEPAYERS FOOT THE HEFTY BILL FOR CAPITAL IMPROVEMENTS BUT ARGUE THAT THE WATER WHILE NOW FREE OF GIARDIA IS TURBID AND FOULTASTING REGULATORS STILL SAY PG&W PROVIDES INADEQUATE SERVICE AND HAVE GRUDGINGLY AGREED TO RATE INCREASES STIPULATING SOME OF THE REVENUE BE USED TO REPAIR PIPES AND EQUIPMENT WE'VE HAD YEARS OF BAD WATER SAYS SID MARKOWITZ WHO OPERATES A NEWSSTAND DOWNTOWN THE PUBLIC INTEREST ISN'T PRIMARY TO THEM THE COMPANY NOTES INDEPENDENT CONSULTANTS VERIFIED THAT ITS FILTERED WATER IS FREE OF CONTAMINANTS AND MEETS INDUSTRY STANDARDS FOR TASTE ODOR AND COLOR OTHER WATER COMPANIES SERVING OLDER CITIES MAY SOON BE FACING PROBLEMS LIKE PG&W'S LAST APRIL THOUSANDS OF MILWAUKEEANS FELL ILL WITH THE WATERBORNE DISEASE CRYPTOSPORIDIOSIS AND THIS SUMMER AREAS OF MANHATTAN WENT ON BOILEDWATER ALERT WHEN HIGH LEVELS OF BACTERIA WERE FOUND IN DRINKING WATER EVERYWHERE WATERSHED LAND IS BEING DEVELOPED AND WATER MAINS CRUMBLING SIMULTANEOUSLY THE FEDERAL GOVERNMENT PLANS TO TIGHTEN PURIFICATION REQUIREMENTS UNDER THE SAFE DRINKING WATER ACT IF YOU NEGLECT THE WATER SYSTEM YOU'LL HAVE TO REBUILD ALMOST THE WHOLE THING WHICH WILL CAUSE A HUGE SURGE IN RATES SAYS JOSEPH RHODES JR VICE CHAIRMAN OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PG&W'S VICE PRESIDENT OF FINANCE JOHN KELL AGREES THAT THERE WERE ADMITTEDLY SOME WATERQUALITY PROBLEMS IN THE PAST BUT HE BELIEVES PEOPLE WOULD CONCEDE THE WATER HAS IMPROVED IF THEY WERE NOT REALLY BOTHERED BY THE RATE INCREASES MANY SCRANTONIANS ARE INCENSED AT UNDERWRITING IMPROVEMENTS TO A SYSTEM THEY FELT THE COMPANY ALLOWED TO DECLINE AND HAVE CONSISTENTLY FOUGHT RATE INCREASES PG&W CONCEDES MANY WATER MAINS ARE IN SUCH POOR CONDITION THAT ABOUT 40 OF THE WATER LEAVING ITS PLANTS IS UNACCOUNTED FOR MEANING IT PROBABLY LEAKS OUT TWENTY PERCENT IS THE INDUSTRY AVERAGE MR KELL SAYS THE COST OF IMPROVEMENTS HAS DEALT A BLOW TO BUSINESSES THAT USE LARGE QUANTITIES OF WATER ANGELICA HEALTH CARE INC A SCRANTON BUSINESS THAT LAUNDERS HOSPITAL LINENS SAYS ITS MONTHLY WATER BILL SHOT UP TO 12000 FROM ABOUT 6500 TWO YEARS AGO PUSHING THE PLANT TOWARD CLOSING UNTIL IT REDUCED WATER CONSUMPTION JAUNTY TEXTILE CORP PAYS THREE TIMES MORE FOR WATER THAN COMPETITORS ELSEWHERE IN THE STATE WHICH HAS DRIVEN POTENTIAL CUSTOMERS AWAY THE WATER WE GET FROM PG&W IS SO BAD SAYS CHIEF EXECUTIVE OFFICER PAUL CUCCOLO IF I WERE TO BUILD A DYE HOUSE TODAY I WOULDN'T DO IT IN SCRANTON THE UTILITY COMMISSION TWICE DENIED PG&W RATE INCREASES IN THE 1980S CITING POOR WATER QUALITY BUT RECENTLY THE COMPANY CONVINCED THE STATE IT NEEDED RATE RISES TO RECOUP ITS 175 MILLION CAPITAL WORKS INVESTMENT IT RECEIVED A 15 MILLION OR 110 RATE BOOST IN 1991 FOR THE SCRANTON AREA AND LAST AUGUST A 129 INCREASE PG&W HAD PAID FOR CONSTRUCTION BY ISSUING DEBT AND EQUITY FISCAL PRESSURES HAVE EASED SOMEWHAT BECAUSE OF THE RECENT RATE RISE FOR SCRANTON IN 1992 OPERATING PROFIT FROM THE WATER BUSINESS ROSE 11 TO 147 MILLION THE UTILITY COMMISSION GRANTED THE INCREASES RELUCTANTLY NOTING IN ITS LAST RATE ORDER THAT IT DID NOT AGREE THAT THE COMPANY IS CURRENTLY PROVIDING ADEQUATE WATER SERVICE IN AN UNUSUAL MOVE THE STATE MANDATED 29 MILLION OF THE RECENT 49 MILLION INCREASE BE USED SOLELY FOR WATERMAIN REPLACEMENT THE REMAINDER GOES TO TAXES THEY PG&W ARE THE ONLY PEOPLE THERE WE CAN WORK WITH SAYS MR RHODES WITHIN EIGHT OR NINE YEARS THE WHOLE CITY WILL HAVE DRINKABLE WATER SCRANTON RESIDENTS WERE ONCE PROUD OF THE PRISTINE MOUNTAIN WATER THAT FLOWED INTO THIS NARROW VALLEY SEPARATING THE POCONOS FROM THE WESTWARD ENDLESS RANGE BUT EVEN IN THE LATE 1970S WATER QUALITY WAS DETERIORATING TAP WATER OCCASIONALLY RAN BROWN SOMETHING PEOPLE ATTRIBUTED TO FLUSHING OF MAINS JAUNTY TEXTILE FIT ITS DYE HOUSE WITH SIX FILTERS DUE TO ERRATIC WATER QUALITY IN 1983 AND 1984 THE SCRANTON AREA WAS SHAKEN BY AN OUTBREAK OF GIARDIA THAT MADE 560 PG&W CUSTOMERS SICK THE STATE DEPARTMENT OF ENVIRONMENTAL RESOURCES WHICH INITIALLY THOUGHT GIARDIA WAS AN EXOTIC ITALIAN SPORTS CAR SAYS A SPOKESMAN FINED PG&W 320000 UNDER A CONSENT AGREEMENT WITH THE DEPARTMENT PG&W HAD TO BUILD EIGHT WATERFILTRATION PLANTS BY LATE 1992 AND REPLACE MANY MAINS IN EARLY 1993 THE COMPANY PAID A 220000 FINE FOR MISSING LAST YEAR'S CONSTRUCTION DEADLINE THE SOURCE OF THE CONTAMINATION WAS NEVER DETERMINED BUT THE CRISIS SHED LIGHT ON THE CRACKS IN PG&W'S SYSTEM REGULATORS MAINTAIN THAT PG&W'S PROBLEMS ARE FAR MORE SEVERE THAN THOSE OF OTHER LARGE PROVIDERS ACCORDING TO MARK CARMON NORTHEAST REGION COMMUNITY RELATIONS COORDINATOR FOR THE RESOURCES DEPARTMENT AND A PG&W CUSTOMER HIMSELF PG&W ACQUIRED SMALLER CONCERNS IN THE AREA IN 50 YEARS AGO JOINED THEM TOGETHER IN A WELLDONE 1940S ENGINEERING WAY AND DID NOTHING AFTER THAT AN ALLEGATION THE COMPANY DENIES THE LAST PLANT BEGAN OPERATING SEPT 30 AND NOW PG&W'S SOPHISTICATED FILTRATION SYSTEM SHOULD PROVIDE DRINKABLE WATER TO ITS 400000 RATEPAYERS I THINK THE FACT THAT PEOPLE DON'T DRINK THE WATER IS A MATTER OF PERCEPTION THAT'S RELATED TO THE PROBLEMS IN THE 1980S MR KELL SAYS CUSTOMERS AND SOME REGULATORS COUNTER THAT THE WATER COMING OUT OF THE PLANTS MAY BE FINE BUT ONCE IT PASSES THROUGH THE COMPANY'S ANTIQUATED MAINS IT TASTES DREADFUL AND REPLACING THOSE MAINS WILL TAKE YEARS JOSEPH PRICE HEAD OF A CITIZEN ADVOCACY GROUP RECALLS WATCHING HIS BATHTUB FILL WITH BLACK WATER A FEW YEARS AGO WHEN HE DREW A BATH AT RECENT HEARINGS RATEPAYERS REFERRED TO PG&W WATER AS CHLORINE COCKTAILS MR CUCCOLO SAID JAUNTY TEXTILES RECENTLY LOST FABRIC BEING DYED AT A COST OF 14000 BECAUSE OF CHLORINE SURGES THE QUESTION IS WHERE DID THE PERCEPTION OF BAD WATER COME FROM SAYS STATE CONSUMER ADVOCATE IRWIN POPOWSKY AN OMBUDSMAN FOR RATEPAYERS SCRANTON IS A DISTRESSED AREA THESE AREN'T THE KIND OF PEOPLE TO BUY SPRING WATER ON A LARK IT MUST BE SERIOUS FOR THEM TO DO THAT PEI IS THE HOLDING COMPANY THAT OWNS PENNSYLVANIA GAS & WATER CO WHICH PROVIDES NATURAL GAS IN CENTRAL AND NORTHEASTERN PENNSYLVANIA AND WATER SERVICE IN THE NORTHEASTERN PART OF THE STATE AND OTHER UNITS THAT MARKET NATURAL GAS SELL MATERIALS TO CONTRACTORS AND OWN REAL ESTATE SEE RELATED LETTER LETTERS TO THE EDITOR HERE IN SCRANTON THE WATER'S FINE WSJ DEC 6 1993 9310120068 YY93 MM12 9312060175 931206 BUSINESS BRIEF ROOSEVELT FINANCIAL AGREES TO ACQUIRE FARM & HOME IN 258 MILLION ACCORD CHESTERFIELD MO ROOSEVELT FINANCIAL GROUP INC AGREED TO ACQUIRE FARM & HOME FINANCIAL CORP FOR STOCK WITH A CURRENT VALUE OF 2831 A SHARE OR ABOUT 258 MILLION THE CROSSSTATE MARRIAGE FARM & HOME IS BASED IN NEVADA MO NEAR THE KANSAS STATE LINE WILL ADD TO ROOSEVELT'S PERSHARE EARNINGS NEXT YEAR THE THRIFT HOLDING COMPANY SAID THE TRANSACTION WHICH IS SUBJECT TO APPROVAL BY REGULATORS AND BY SHAREHOLDERS OF BOTH COMPANIES IS EXPECTED TO CLOSE BEFORE NEXT JUNE 30 ROOSEVELT WITH ABOUT 4 BILLION IN ASSETS ALSO HAS BRANCHES IN ILLINOIS ROOSEVELT'S ASSETS WILL EXPAND FURTHER WHEN IT CLOSES ITS PREVIOUSLY ANNOUNCED ACQUISITION OF HOME FEDERAL BANCORP OF MISSOURI WITH ITS 545 MILLION IN TOTAL ASSETS FARM & HOME IS A MAJOR SAVINGS INSTITUTION WITH 38 BILLION IN ASSETS AND BRANCHES IN MISSOURI TEXAS AND KANSAS TERMS OF THE DEFINITIVE PACT CALL FOR FARM & HOME HOLDERS TO SWAP EACH OF THEIR SHARES FOR 067 SHARE OF ROOSEVELT COMMON THE PROPOSAL WAS DISCLOSED FRIDAY EVENING AFTER THE MARKET'S CLOSE IN NASDAQ STOCK MARKET TRADING ROOSEVELT SHARES CLOSED UP 75 CENTS AT 4225 THE INDICATED 2831 A SHARE OF ROOSEVELT STOCK THE EXCHANGE RATIO PROVIDES TO FARM & HOME HOLDERS AT THAT PRICE REPRESENTS A SIGNIFICANT PREMIUM AS THE COMPANY'S SHARES CLOSED UNCHANGED AT 2025 FRIDAY IN NASDAQ TRADING THE TRANSACTION IS STRUCTURED TO QUALIFY FOR SOCALLED POOLING ACCOUNTING TREATMENT JOHN MORTON FARM & HOME'S CHIEF EXECUTIVE OFFICER SAID THE OPERATIONAL FIT BETWEEN THE TWO ENTITIES IS SUPERB PARTICULARLY FOR CREATING SPECIFIC MARKET SHARE STRENGTH AND BUSINESS LINE DIVERSITY ROOSEVELT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER STANLEY J BRADSHAW SAID WE ARE ALMOST DOUBLING ROOSEVELT'S RETAIL DEPOSIT FRANCHISE WITHOUT ASKING OUR SHAREHOLDERS TO SHOULDER THE BURDEN OF EARNINGS DILUTION HE SAID THE TRANSACTION ALSO ENHANCES THE DIVERSITY AND MARKET PRESENCE OF BOTH COMPANIES 9312060174 931206 BUSINESS BRIEF RUSSIAN TRUCK MAKER CATERPILLAR IN VENTURE TO BUILD FUEL SYSTEMS PEORIA ILL CATERPILLAR INC SAID IT AGREED WITH RUSSIA'S LEADING TRUCK MAKER TO FORM A JOINT VENTURE THAT WILL PRODUCE FUEL SYSTEMS FOR THE RUSSIAN PARTNER'S NEW LINE OF MIDRANGE DIESEL ENGINES UNDER THE AGREEMENT WITH RUSSIA'S AMO ZIL CATERPILLAR WILL OWN A 51 STAKE IN THE VENTURE TO BE KNOWN AS NOVODIESEL THE VENTURE WILL POSITION THE US MAKER OF HEAVY EQUIPMENT AND DIESEL ENGINES CATERPILLAR SAID TO PARTICIPATE IN A MARKET WHICH HAS SUBSTANTIAL SALES POTENTIAL FOR ALL SIZES OF DIESEL TRUCK ENGINES AND WILL HELP AMO ZIL PRODUCE MORE FUELEFFICIENT AND LESSPOLLUTING ENGINES AMO ZIL WILL CONTRIBUTE 100000 SQUARE FEET OF MANUFACTURING SPACE IN ITS MOSCOW FACILITY TO THE VENTURE CATERPILLAR SAID RUSSIAN MANAGERS AND WORKERS WILL STAFF THE FACILITY CATERPILLAR'S CONTRIBUTION WILL INCLUDE TECHNOLOGY A SMALL PERCENTAGE OF THE FUEL SYSTEMS PRODUCED BY THE VENTURE WILL BE FOR CATERPILLAR'S USE THE COMPANY NOTED CATERPILLAR CALLED THE FORMATION OF NOVODIESEL PART OF A MULTIPHASE STRATEGY FORMULATED BY CATERPILLAR AMOZIL AND PACCAR PACCAR INC A BELLEVUE WASH MAKER OF HEAVYDUTY TRUCKS IS A MAJOR CATERPILLAR ENGINE CUSTOMER IN JUNE THE THREE COMPANIES FORMED A VENTURE NOVOTRUCK TO DEVELOP A NETWORK OF DEALERS THROUGHOUT THE FORMER SOVIET UNION 9312060173 931206 BUSINESS BRIEFS MATRIX SERVICE CO TULSA OKLA DISCONTINUED ITS PREVIOUSLY ANNOUNCED NEGOTIATIONS TO ACQUIRE ALTAIR STRICKLAND INC SAYING BOTH COMPANIES AGREED THAT A COMBINATION OF MATRIX'S CONSTRUCTION MAINTENANCE SERVICES AND ALTAIR'S PETROLEUM REFINING ISN'T LIKELY AT THIS TIME PHILLIPS PETROLEUM CO'S GPM GAS CORP SUBSIDIARY BOUGHT NATURALGAS PLANT EQUIPMENT AND A GATHERING SYSTEM FROM AMERICAN OIL & GAS CORP AFFILIATES HOUSTON TERMS WEREN'T DISCLOSED DDI PHARMACEUTICALS INC MOUNTAINVIEW CALIF ENDED MERGER DISCUSSIONS WITH WITH CLOSELY HELD INTERNATIONAL BIOCLINICAL INC PORTLAND ORE WHICH WITHDREW FROM THE PROCESS AFTER DDI'S DIRECTORS WERE UNABLE TO AGREE ON A BASIS FOR PROCEEDING WITH THE MERGER REYNOLDS & REYNOLDS CO DAYTON OHIO AGREED TO BUY ALL OF THE ASSETS AND TO ASSUME CERTAIN LIABILITIES OF LAW PRINTING CO OXNARD CALIF TERMS WEREN'T DISCLOSED THE TRANSACTION IS EXPECTED TO BE COMPLETED IN EARLY JANUARY URS CORP SAID IT WON A CONTRACT FROM THE STATE OF CALIFORNIA DIVISION OF MINES AND GEOLOGY TO EVALUATE THE SEISMIC DESIGN OF THE STATE'S BUILDING CODES THE VALUE OF THE CONTACT WASN'T DISCLOSED CORRPRO COS MEDINA OHIO AGREED TO BUY THE ASSETS OF ITS SUPPLIER GOODALL ELECTRIC INC FORT COLLINS COLO THE AMOUNT WASN'T DISCLOSED AND THE TRANSACTION IS SUBJECT TO APPROVAL BY THE BOARDS OF EACH COMPANY GOODALL WHICH HAS ABOUT 100 EMPLOYEES HAD 1992 SALES OF LESS THAN 10 MILLION ANACOSTIA & PACIFIC CO CHICAGO SIGNED A DEFINITIVE AGREEMENT WITH CONRAIL INC TO BUY A 107MILE RAILWAY LINE THAT RUNS FROM SOUTHERN INDIANAPOLIS TO LOUISVILLE KY TERMS WEREN'T DISCLOSED THE ACQUISITION IS EXPECTED TO BE COMPLETED DURING THE FIRST QUARTER OF 1994 9312060172 931206 SUN TO BOOST CAPITAL SPENDING PHILADELPHIA SUN CO SAID IT PLANS TO INCREASE CAPITAL SPENDING IN 1994 BY 32 TO 790 MILLION THE OIL AND CHEMICAL COMPANY SAID MUCH OF THE INCREASED SPENDING WILL BE FOR EXPANSION AMONG THE GROWTH AREAS PLANNED ARE CHEMICALS PIPELINES MARKETING AND INTERNATIONAL OIL PRODUCTION 9312060171 931206 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ADDED NINE NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 12 NEW LISTINGS FOR ITS NATIONAL MARKET SYSTEM INCLUDING FIVE INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS INCLUDING ONE INITIAL OFFERING THE BIG BOARD BEGAN TRADING ON THE FOLLOWING INITIAL OFFERINGS IRVINE APARTMENT COMMUNITIES INC NEWPORT BEACH CALIF UNDER IAC A REAL ESTATE INVESTMENT TRUST PACTEL CORP WALNUT CREEK CALIF PTW A WIRELESS TELECOMMUNICATIONS COMPANY PREVIOUSLY PART OF PACIFIC TELESIS GROUP THE PACIFIC STOCK EXCHANGE ALSO LISTED PACTEL AND PAINEWEBBER PREMIER HIGH INCOME TRUST INC NEW YORK PHT A CLOSEDEND FUND ALSO FIRST AMERICAN FINANCIAL CORP SANTA ANA CALIF FAF A REAL ESTATE FINANCIAL SERVICES COMPANY FORMERLY TRADED OVERTHECOUNTER FRUIT OF THE LOOM INC CHICAGO FTL CLASS A SHARES AN APPAREL MAKER PREVIOUSLY TRADED ON THE AMEX AND VALLEY NATIONAL BANCORP WAYNE NJ VLY A BANK HOLDING COMPANY WHICH PREVIOUSLY TRADED OVERTHECOUNTER THE BIG BOARD ADDED THE AMERICAN DEPOSITORY SHARES OF GRUPO FINANCIERO SERFIN SA DE CV MEXICO CITY SFN A FINANCIAL SERVICES HOLDING COMPANY ALSO STATESMAN GROUP INC DES MOINES IOWA STG A FINANCIAL SERVICES HOLDING COMPANY WHICH PREVIOUSLY TRADED OVERTHECOUNTER AND AVIALL INC DALLAS AVL AN AVIATION SUPPORT INDUSTRY SERVICE GROUP AND A SPINOFF FROM RYDER SYSTEM INC THE NASDAQ MARKET LISTED FIVE INITIAL OFFERINGS WVS FINANCIAL CORP PITTSBURGH WVFC A SAVINGS BANK CONVERSION AIRPORT SYSTEMS INTERNATIONAL INC OVERLAND PARK KAN ASII AN AIRCRAFT RADIO NAVIGATION EQUIPMENT COMPANY ALLIANCE SEMICONDUCTOR CORP SAN JOSE CALIF ALSC A MAKER OF SEMICONDUCTOR MEMORY PRODUCTS PARKERVISION INC JACKSONVILLE FLA PRKR AN AUTOMATED VIDEO CAMERA CONTROL SYSTEM COMPANY AND HUMAN GENOME SCIENCES INC ROCKVILLE MD HGSI A COMPANY ENGAGED IN THE DISCOVERY OF HUMAN GENES APPLIED INNOVATION INC COLUMBUS OHIO AINN A MAKER OF DATA COMMUNICATIONS SWITCHING PRODUCTS AND SERVICES MOVED TO THE NASDAQ NATIONAL MARKET FROM THE SMALLCAP MARKET HEALTHWISE OF AMERICA INC NASHVILLE TENN HOAM A HEALTH MAINTENANCE ORGANIZATION COMPANY JOINED THE NASDAQ MARKET UPON DISTRIBUTION OF ITS SHARES BY SURGICAL CARE AFFILIATES INC THREE ISSUES FORMERLY TRADED IN THE PINK SHEETS MOVED TO THE NASDAQ NATIONAL MARKET INSILCO CORP MIDLAND TEX INSL A MAKER OF SPECIALTY CONSUMER AND COMPONENT PRODUCTS CELEX GROUP INC LOMBARD ILL CLXG A MARKETER OF MOTIVATIONAL AND SELFIMPROVEMENT PRODUCTS AND FIRST BANKING CO OF SOUTHEAST GEORGIA STATESBORO GA FBCG A BANK HOLDING COMPANY SPECIALTY EQUIPMENT COS BELVIDERE ILL SPEQ JOINED THE NASDAQ MARKET FOLLOWING REORGANIZATION UNDER CHAPTER 11 THE AMEX BEGAN TRADING THE INITIAL OFFERING OF CENTERPOINT PROPERTIES CORP CHICAGO CNT AN OWNER OF WAREHOUSE/INDUSTRIAL REAL ESTATE PROPERTIES AND THE COMMON SHARES OF SUNCOR INC TORONTO SU AN INTEGRATED OIL AND GAS COMPANY WHICH IS TRADED ON CANADIAN EXCHANGES THE AMEX ALSO BEGAN TRADING OPTIONS ON USXDELHI GROUP AND CHARTER GOLF INC THE CHICAGO BOARD OPTIONS EXCHANGE AND THE AMEX WILL BEGIN TRADING OPTIONS ON ATARI CORP ON DEC 10 AND BOTH EXCHANGES WILL BEGIN TRADING OPTIONS ON SPECTRUM INFORMATION TECHNOLOGIES INC ON DEC 8 THE CBOE AND THE PHILADELPHIA STOCK EXCHANGE TODAY WILL BEGIN TRADING OPTIONS ON TRANSPORTACION MARITIMA MEXICANA SA DE CV THE CBOE SAID IT WILL LIST LONGTERM OPTIONS TODAY ON BELL ATLANTIC CORP BEST BUY CO AND MCI COMMUNICATIONS CORP 9312060170 931206 TECHNOLOGY & HEALTH AMA IN POLICY REVERSAL MAY OPPOSE MAKING EMPLOYERS PAY FOR HEALTH CARE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW ORLEANS THE AMERICAN MEDICAL ASSOCIATION IS PARTING COMPANY WITH THE WHITE HOUSE ON HOW TO PAY FOR HEALTHCARE REFORM SPECIFICALLY WHETHER EMPLOYERS SHOULD HAVE TO PAY FOR WORKERS' MEDICAL INSURANCE DOCTORS FROM NEARLY A DOZEN STATES HAVE INTRODUCED RESOLUTIONS AT THE AMA'S CONVENTION HERE URGING THAT INDIVIDUALS INSTEAD OF THEIR EMPLOYERS BE ULTIMATELY RESPONSIBLE FOR BUYING HEALTH INSURANCE THOSE RESOLUTIONS AMOUNT TO A REVERSAL OF THE AMA'S POLICY OF THE PAST FEW YEARS WHICH HAS FAVORED EMPLOYER MANDATES BOWING TO MEMBERSHIP PRESSURE AMA TRUSTEES INDICATED THAT THEY ARE READY TO BUDGE OVER THE WEEKEND TRUSTEES DRAFTED WHAT THEY CALLED A MORE FLEXIBLE NEW PROPOSAL FOR FINANCING HEALTHCARE REFORM THAT NEW PROPOSAL SAYS THAT THE DOCTORS' GROUP WILL EXPLORE AND ADVANCE ALL CONCEPTS THAT ACCOMPLISH REASONABLE NONTAXFUNDED GUARANTEED COVERAGE LATER THIS WEEK THE AMA'S DELEGATES WILL VOTE TO ESTABLISH THE EXACT LANGUAGE OF THEIR NEW POSITION THE AMA'S RETREAT UNDERSCORES HOW HARD IT IS FOR THE CLINTON ADMINISTRATION TO RALLY BROAD SUPPORT FOR ITS FINANCING PROPOSALS IN THE PAST FEW MONTHS SMALLBUSINESS GROUPS HAVE RAILED AGAINST EMPLOYER MANDATES ARGUING THAT EVEN WITH SOME GOVERNMENT SUBSIDIES THEY WOULD FACE AN UNACCEPTABLE COST BURDEN IF THEY HAD TO SHOULDER EXTRA HEALTH INSURANCE BILLS FOR THEIR WORKERS DOCTORS AT THE AMA MEETING VOICED SYMPATHY FOR THE SMALLBUSINESS ARGUMENTS CENTRAL NEW YORK CANNOT SURVIVE WITH EMPLOYERMANDATED INSURANCE SAID DUANE CADY A DOCTOR IN LIVERPOOL NY WITH THIS ADDITIONAL TAX IT WOULD BE IMPOSSIBLE DOCTORS FROM COLORADO TEXAS FLORIDA AND OKLAHOMA CONCURRED WHILE OTHER DOCTORS SAID THE AMA SHOULD BE FLEXIBLE ON THE FINANCING ISSUE SO IT COULD SAVE ITS LOBBYING CLOUT FOR OTHER ISSUES THAT TOUCH MORE DIRECTLY ON PHYSICIANS' LIVES IN A REVIEW OF LOBBYING EFFORTS SO FAR THIS YEAR AMA TRUSTEES PORTRAYED THEMSELVES AS HAVING PROMPTED SIGNIFICANT CHANGES IN THE CLINTON HEALTH PLAN INCLUDING WINNING FOR DOCTORS THE RIGHT TO NEGOTIATE COLLECTIVELY ON FEE SCHEDULES WITH FEEFORSERVICE PLANS STILL THE AMA TRUSTEES IDENTIFIED PLENTY OF ADDITIONAL CHANGES THAT THEY WANT TO PURSUE WITH CONGRESS AMONG THESE ARE SEEKING A GUARANTEED DOCTOR'S SEAT ON THE PROPOSED SEVENMEMBER NATIONAL HEALTH BOARD LIMITING THE POWERS OF NEW HEALTH ALLIANCES TO REGULATE PRICES WINNING FOR DOCTORS THE RIGHT TO APPLY TO ANY HEALTH PLAN OF THEIR CHOICE REDUCING THE SCOPE OF THE GOVERNMENT'S PLANS TO CREATE MORE PRIMARYCARE DOCTORS AND FEWER SPECIALISTS WHILE PART OF THE AMA'S CLOUT IS DIRECTED AT WASHINGTON INSURANCE COMPANIES ARE SHAPING UP AS A FAVORITE TARGET TOO IN AN OPENING ADDRESS THE AMA'S EXECUTIVE VICE PRESIDENT JAMES TODD DECLARED GIANT INSURANCE COMPANIES POSE A CLEAR AND PRESENT DANGER TO THE ABILITY OF DOCTORS TO MAKE THE RIGHT DECISIONS 9312060168 931206 US BIG THREE TO UNVEIL PLAN FOR CLEANER CARS INDUSTRY TO PITCH ALTERNATIVE TO STRICT CALIFORNIA LAW AND ELECTRIC VEHICLES BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT DETROIT'S BIG THREE AUTO MAKERS WILL PRESENT TODAY A PROPOSAL FOR REDUCING VEHICLE EMISSIONS THAT ATTEMPTS TO PERSUADE STATES NOT TO ADOPT TOUGH RULES NOW IN EFFECT IN CALIFORNIA THAT WILL FORCE THE COMPANIES TO SELL ELECTRIC CARS BY 1998 ACCORDING TO A DOCUMENT OBTAINED BY THE WALL STREET JOURNAL THE BIG THREE AUTO MAKERS WILL PROPOSE SELLING CARS AND TRUCKS THAT ARE CLEANER THAN IS CURRENTLY REQUIRED UNDER THE FEDERAL CLEAN AIR ACT OF 1990 WHICH GIVES AUTO MAKERS UNTIL THE START OF THE 1995 MODEL YEAR NEXT FALL TO COMPLY WITH NEW EMISSION STANDARDS THE AUTO MAKERS WILL ARGUE THAT UNDER THEIR PROPOSAL THEY WILL INTRODUCE VEHICLES BETWEEN 2001 AND 2003 THAT WILL BE JUST AS CLEAN AS THOSE THAT THE GOVERNMENT MAY REQUIRE BY THE YEAR 2004 IF STATES FALL SHORT OF FEDERAL CLEAN AIR GOALS THE AUTO MAKERS WILL ALSO CONTEND THAT UNDER THEIR PLAN VEHICLES WILL BE JUST AS CLEAN AS THOSE REQUIRED IN CALIFORNIA UNDER THAT STATE'S SECOND LEVEL OF EMISSIONS RULES WHICH GO INTO EFFECT IN 1997 THE CALIFORNIA PROGRAM HAS COME UNDER CRITICISM BY THE AUTO MAKERS MOSTLY BECAUSE OF ITS ZEROEMISSION VEHICLE REQUIREMENT THAT FORCES AUTO MAKERS TO SELL ELECTRIC CARS BY 1998 THE BIG THREE WILL PRESENT THEIR PLAN AT A PRESS CONFERENCE HERE SCHEDULED BY THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION THE WASHINGTON LOBBYING GROUP THAT REPRESENTS GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP A SPOKESMAN FOR THE GROUP SAID THE AUTO MAKERS ARE PROUD OF THEIR PROPOSAL BUT DECLINED TO COMMENT ON DETAILS TO SUCCEED THE AUTO MAKERS MUST CONVINCE STATES PARTICULARLY IN THE NORTHEAST THAT THEIR PROPOSAL WILL HELP THE STATES MEET FEDERAL CLEAN AIR GOALS THAT IF MISSED COULD CAUSE STATES TO LOSE MILLIONS IN FEDERAL ASSISTANCE FOR HIGHWAYS AND OTHER PROJECTS STATES IN THE NORTHEAST HAVE ALREADY BANDED TOGETHER TO ADOPT CALIFORNIA'S CLEANAIR PROGRAM WHICH IS THE ONLY STATE PROGRAM CURRENTLY ALLOWED UNDER FEDERAL LAW IN THE OTHER STATES FEDERAL RULES NOW APPLY BUT THE BIG THREE FACE AN UPHILL BATTLE IN THE NORTHEAST WHERE THE AUTO MAKERS' LOBBYING GROUP HAS SUED THE STATES OF NEW YORK AND MASSACHUSETTS TO BLOCK THE ADOPTION OF CALIFORNIA STANDARDS NEW YORK'S COMMISSIONER OF ENVIRONMENTAL CONSERVATION THOMAS JORLING SAID HIS STATE WON'T ACCEPT ANY PLAN THAT DOES NOT INCLUDE A REQUIREMENT FOR PHASING IN ZEROEMISSION VEHICLES OR ELECTRIC CARS FURTHERMORE MR JORLING SAID NEW YORK WOULD NOT ADOPT ANY PROPOSAL MADE BY THE AUTO MAKERS UNLESS THEY ARE WILLING TO DROP THEIR LAWSUIT AGAINST THE STATE WE ARE NOT GOING TO BUY A PIG IN THE POKE MR JORLING SAID IT WOULD TAKE A TREMENDOUS BURDEN OF PROOF TO SHOW THAT A SUBSTITUTE PLAN IS AS GOOD AS A CALIFORNIA PLAN THE AUTO MAKERS' PROPOSAL WHICH THEY ENVISION GOING INTO EFFECT IN ALL 49 STATES EXCEPT CALIFORNIA EXCLUDES ANY REQUIREMENT FOR ZEROEMISSION VEHICLES WHICH ARE INTEGRAL TO CALIFORNIA'S CLEANAIR PROGRAM AND MUST BE INCLUDED IF THE CALIFORNIA APPROACH IS TAKEN CALIFORNIA REQUIRES AUTO MAKERS TO DEDICATE 2 OF THEIR SALES IN THE STATE TO ZEROEMISSION VEHICLES BY 1998 ZEROEMISSION VEHICLES ARE LIKELY TO BE CARS AND TRUCKS POWERED BY ELECTRICITY YET DESPITE HIGHPROFILE EFFORTS TO BUILD SUCH VEHICLES DETROIT'S BIG THREE HAVE BECOME INCREASINGLY CRITICAL OF THEIR SHORTCOMINGS THEY HAVE ARGUED ELECTRIC VEHICLES WILL LIKELY BE TOO EXPENSIVE TOO DIFFICULT TO MARKET AND TOO IMPRACTICAL BY 1998 MUCH OF THEIR CRITICISM HAS CENTERED ON BATTERY TECHNOLOGY WHICH HAS YET TO MATCH INTERNALCOMBUSTION ENGINES IN DELIVERING POWER AND SUSTAINED DRIVING RANGE 9312060167 931206 VENEZUELAN OIL FIRM SEEKS EQUAL CHANCES UNDER CLEAN AIR ACT WASHINGTON VENEZUELA'S NATIONAL OIL COMPANY IS STEPPING UP ITS EFFORTS TO BE TREATED THE SAME UNDER THE CLEAN AIR ACT AS DOMESTIC REFINERS IN SUPPLYING GASOLINE TO THE US ALIRIO PARRA VENEZUELA'S OIL MINISTER WAS IN WASHINGTON FRIDAY TO TALK TO STATE DEPARTMENT AND WHITE HOUSE OFFICIALS REGARDING AN EXEMPTION SOUGHT BY PETROLEOS DE VENEZUELA UNDER PROPOSED RULES FOR GASOLINE SHIPPED TO THE US BY FOREIGN REFINERS VENEZUELA IS A LEADING SOURCE OF OIL IMPORTS FOR THE US IT SUPPLIES THE US WITH MORE THAN 13 MILLION BARRELS OF CRUDE OIL AND PETROLEUM PRODUCTS A DAY INCLUDING SOME 70000 BARRELS A DAY OF GASOLINE SHIPPED MAINLY TO THE EAST COAST THE PROPOSED CLEAN AIR RULES DETERMINE THE AMOUNTS OF POLLUTIONCAUSING COMPONENTS ALLOWED IN MOTOR FUEL BEGINNING IN 1995 REFORMULATED GASOLINE MUST MEET CERTAIN SPECIFICATIONS BUT UNLIKE US REFINERS FOREIGN FIRMS WOULDN'T BE ABLE TO USE A FORMULA BASED ON THEIR 1990 GASOLINE PRODUCTION TO DETERMINE COMPLIANCE THIS HAS BECOME A NATIONAL ISSUE IN VENEZUELA WHERE 1 BILLION IS BEING INVESTED TO UPGRADE REFINERIES TO PROCESS GASOLINE SUITABLE FOR THE US ACCORDING TO PETROLEOS DE VENEZUELA THE RULES DISCRIMINATE AGAINST FOREIGN REFINERS IN VIOLATION OF INTERNATIONAL TRADE AGREEMENTS AND WOULD HAVE A SIGNIFICANT NEGATIVE IMPACT ON VENEZUELA'S ABILITY TO SUPPLY THE US GASOLINE MARKET WE ARE NOT ASKING FOR ANY ADVANTAGE SAID MR PARRA WE WANT TO HAVE THE SAME TREATMENT AS A US REFINER ON AVERAGE HE SAID PETROLEOS DE VENEZUELA'S GASOLINE WOULD HAVE LESS HARMFUL EMISSIONS THAN FUELS MARKETED BY US REFINERS THE VENEZUELAN COMPANY IS ASKING THE ENVIRONMENTAL PROTECTION AGENCY TO MODIFY THE PROPOSED REGULATIONS A DECISION IS DUE DEC 9312060166 931206 WHO'S NEWS PUBLIC SECURITIES ASSOCIATION PUBLIC SECURITIES ASSOCIATION NEW YORK R FENN PUTMAN 60 YEARS OLD MANAGING DIRECTOR OF THE MUNICIPALFINANCE DEPARTMENT AT LEHMAN BROTHERS INC WAS NAMED CHAIRMAN OF THIS SECURITIES INDUSTRY TRADE ASSOCIATION HE SUCCEEDS DON B TAGGART 46 WHO REMAINS A MEMBER OF THE BOARD ROBERT D MCKNEW 46 EXECUTIVE VICE PRESIDENT OF THE BANKING UNIT OF BANKAMERICA CORP SAN FRANCISCO WAS ELECTED VICE CHAIRMAN 9312060165 931206 INTERNATIONAL TAIWAN'S ACCOUNT SURPLUS JUMPS TAIPEI TAIWAN'S CURRENT ACCOUNT SURPLUS MORE THAN DOUBLED TO 146 BILLION IN THE THIRD QUARTER OF THIS YEAR FROM 575 MILLION IN THE YEAREARLIER PERIOD TAIWAN'S CENTRAL BANK SAID THE NATION'S MERCHANDISE TRADE SURPLUS IN THE THIRD QUARTER REACHED 323 BILLION WITH EXPORTS TOTALING 2114 BILLION AND IMPORTS AMOUNTING TO 1791 BILLION IN THE THIRD QUARTER OF 1992 TAIWAN'S MERCHANDISE TRADE SURPLUS WAS 220 BILLION WITH EXPORTS TOTALING 2047 BILLION AND IMPORTS TOTALING 1827 BILLION 9312060164 931206 REP PICKLE OF TEXAS A SENIOR TAX WRITER WILL RETIRE NEXT YEAR WASHINGTON TEXAS REP JJ JAKE PICKLE A PROTEGE OF LYNDON JOHNSON WHO BECAME ONE OF THE MOST SENIOR TAX WRITERS IN THE HOUSE WILL RETIRE NEXT YEAR AFTER MORE THAN THREE DECADES IN CONGRESS THE THIRDRANKING DEMOCRAT ON THE WAYS AND MEANS COMMITTEE MR PICKLE WAS AN EARLY VOICE IN WARNING OF THE SAVINGSANDLOAN CRISIS IN THE 1980S MORE RECENTLY HE PROMOTED LEGISLATION SEEKING TO STRENGTHEN THE PENSION BENEFIT GUARANTY CORP WHICH IS CHARGED WITH BACKING UP PRIVATE RETIREMENT PLANS MR PICKLE'S AGE HE TURNED 80 IN OCTOBER HAS DETRACTED FROM HIS INFLUENCE IN THE ROUGHANDTUMBLE POLITICS OF THE HOUSE HE REMAINS A SELFDEPRECATING KINDLY FIGURE WHOSE OVERSIGHT SUBCOMMITTEE HAS WON ATTENTION FOR ITS HEARINGS ON MEDICARE ABUSES AND TAX AVOIDANCE BY US SUBSIDIARIES OF FOREIGN CORPORATIONS MOST RECENTLY THE PANEL HAS BEEN WORKING TO GIVE THE INTERNAL REVENUE SERVICE NEW ENFORCEMENT TOOLS TO COMBAT ABUSES BY TAXEXEMPT ORGANIZATIONS WHERE INSIDERS HAVE ENRICHED THEMSELVES THROUGH HIGH SALARIES OR INTERESTFREE LOANS WITH MR PICKLE'S RETIREMENT REP CHARLES RANGEL D NY WILL MOVE INTO THE THIRDRANKING SLOT ON THE WAYS AND MEANS PANEL IF CHAIRMAN DAN ROSTENKOWSKI D ILL SHOULD STEP DOWN HIMSELF MR RANGEL WOULD HAVE A CLEAR SHOT TO CHALLENGE THE CURRENT RANKING DEMOCRAT REP SAM GIBBONS OF FLORIDA 9312060163 931206 TECHNOLOGY PANAMSAT REACHES PRELAUNCH ACCORDS WITH PROGRAMMERS GREENWICH CONN PANAMSAT LP SAID IT HAS REACHED PRELAUNCH AGREEMENTS TOTALING 958 MILLION WITH INTERNATIONAL TELEVISION PROGRAMMERS FOR SPACE ON THREE NEW SATELLITES THE CLOSELY HELD SATELLITE CONCERN THE FIRST PRIVATE COMPANY TO OFFER GLOBAL SATELLITE SERVICES SAID THE CUSTOMERS INCLUDE TURNER BROADCASTING SYSTEM INC CAPITAL CITIES/ABC INC'S ESPN INTERNATIONAL AND MEXICAN BROADCASTER GRUPO TELEVISA SA BROADCASTS WILL BEGIN AFTER A SATELLITE IS LAUNCHED IN MAY OVER THE ASIAPACIFIC REGION TO BE FOLLOWED BY TWO MORE LAUNCHES AROUND NOVEMBER 1994 AND IN MAY 1995 CLIENTS ON THE COMPANY'S SATELLITE CURRENTLY SERVING LATIN AMERICA INCLUDE BRITISH BROADCASTING CORP AND NHK JAPAN BROADCASTING CORP THE AGREEMENTS FILL LESS THAN A THIRD OF THE CAPACITY OF PANAMSAT'S FUTURE AVAILABLE SATELLITE SPACE SAID PRESIDENT FRED LANDMAN LAST YEAR PANAMSAT GENERATED 403 MILLION IN REVENUE WITH NET INCOME OF 171 MILLION AND HAS SAID THE NEW OPERATIONS MAY INCREASE REVENUE TENFOLD THE MOVE REPRESENTS PANAMSAT'S BRANCHING OUT INTO NEW AREAS VIA DIRECT BROADCAST SATELLITE TECHNIQUES SAID KEN MCGEE A TELECOMMUNICATIONS ANALYST WITH THE GARTNER GROUP IN STAMFORD CONN SUCH TECHNIQUES DELIVER LARGE AMOUNTS OF VIDEO IN COMPRESSED FORMATS AND REPRESENT AN EMERGING MARKET THAT CHALLENGES CURRENT PRIVATE BROADCASTING METHODS SUCH AS FIBEROPTIC CABLE TRANSMISSIONS 9312060162 931206 KODAK'S DEBT RATINGS ARE LOWERED BY S&P UNIT'S SPINOFF IS CITED NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON EASTMAN KODAK CO ROCHESTER NY AND RELATED ENTITIES CITING KODAK'S PLAN TO SPIN OFF ITS EASTMAN CHEMICALS UNIT ABOUT 7 BILLION OF DEBT IS AFFECTED S&P DOWNGRADED THE FOLLOWING SENIOR DEBT RATING TO TRIPLEBPLUS FROM SINGLEAMINUS SUBORDINATED DEBT RATING TO TRIPLEB FROM TRIPLEBPLUS 22 BILLION OF RULE 415 SENIOR SHELF DEBT RATING TO PRELIMINARY TRIPLEBPLUS FROM PRELIMINARY SINGLEAMINUS S&P SAID IT AFFIRMS ITS SINGLEA2 RATING ON THE COMPANY'S COMMERCIAL PAPER PRO FORMA FOR THE PLANNED CHEMICALS UNIT SPINOFF DEBT LEVERAGE IS ABOUT 69 AND 1992'S INTEREST COVERAGE IS 27 TIMES BOTH OUT OF LINE WITH FORMER RATINGS S&P SAID S&P SAID IT BELIEVES IMPROVED CASH FLOW FOR THE COMPANY WILL BE DIFFICULT TO ACHIEVE THE RATINGS DOWNGRADE REFLECTS LOSS OF THE WELLPOSITIONED CHEMICALS DIVISION WHICH HAD BROUGHT DIVERSITY TO KODAK'S BUSINESS PORTFOLIO THE RATING CHANGE ALSO IS DUE TO THE FIRM'S CONTINUING HEAVY DEBT BURDEN RELATIVE TO CASH FLOW AND LACKLUSTER PROFITABILITY UPGRADE POTENTIAL IS LIMITED BARRING A SUBSTANTIAL FALL IN DEBT S&P SAID S&P WHICH PLACED KODAK ON CREDITWATCH JUNE 15 MADE ITS ANNOUNCEMENT AFTER THE CLOSE OF TRADING KODAK OFFICIALS WEREN'T AVAILABLE FOR COMMENT 9312060161 931206 PACTEL CORP SHARES SHOW 11 PREMIUM IN FIRSTDAY TRADING NEW YORK SHARES OF PACTEL CORP WHICH WENT PUBLIC FRIDAY CLOSED AT AN 11 PREMIUM ABOVE THE OFFERING PRICE OF 23 REFLECTING INVESTOR INTEREST IN WIRELESS COMMUNICATIONS STOCKS PACTEL A CELLULAR AND PAGING COMMUNICATIONS COMPANY IS TO BE SPUN OFF FROM ITS BABY BELL PARENT PACIFIC TELESIS GROUP NEXT YEAR PACTEL'S SHARES CLOSED AT 2550 ON THE BIG BOARD ON VOLUME OF 253 MILLION SHARES THE SHARES TRADED AS HIGH AS 2650 THE 60 MILLION SHARE OFFERING RAISED 138 BILLION OF THE TOTAL 42 MILLION SHARES WERE OFFERED IN THE US AND THE REST IN INTERNATIONAL MARKETS PACIFIC TELESIS WHICH RETAINS AN 88 INTEREST IN THE COMPANY PLANS TO DISTRIBUTE PACTEL SHARES TO ITS SHAREHOLDERS AT A LATER DATE BASED ON PACTEL'S CLOSING PRICE OF 2550 FRIDAY AND THE 484 MILLION SHARES EXPECTED TO BE OUTSTANDING AFTER THE SPINOFF PACTEL WOULD HAVE AN INDICATED MARKET VALUE OF ABOUT 1234 BILLION PACIFIC TELESIS'S UNUSUAL STRATEGY TO SPIN OFF ITS WIRELESS BUSINESSES AT A TIME WHEN OTHER REGIONAL PHONE COMPANIES ARE EAGERLY SEEKING ACQUISITION TARGETS HAS BEEN COMMENDED BY SOME ANALYSTS INDUSTRY WATCHERS SAY THAT PACTEL WILL BE FREE OF THE REGULATORY CONSTRAINTS THAT HINDER ITS PARENT IN ADDITION THEY SPECULATE THAT PACTEL MAY USE ITS INDEPENDENCE TO ENTER NEW BUSINESSES INCLUDING LONGDISTANCE SERVICE 9312060160 931206 TECHNOLOGY & HEALTH US FIRMS GETTING JAPANESE ORDERS FOR BIG COMPUTERS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL THE JAPANESE GOVERNMENT IS AWARDING MORE SUPERCOMPUTER CONTRACTS TO US COMPANIES BUT US VENDORS AND TRADE OFFICIALS REMAIN SKEPTICAL OF A BREAKTHROUGH BECAUSE JAPANESE VENDORS HAVEN'T BEEN ABLE TO COMPETE FOR THE CONTRACTS THAT THE AMERICANS HAVE WON IN THE PAST TWO WEEKS THE JAPANESE GOVERNMENT HAS GIVEN THREE CONTRACT AWARDS TO US COMPANIES VALUED AT ABOUT 37 MILLION MOREOVER THE FOUR REMAINING SUPERCOMPUTER CONTRACTS SCHEDULED TO BE AWARDED THIS YEAR ALL REQUIRE MASSIVELY PARALLEL PROCESSING SUPERCOMPUTERS WHICH AREN'T MADE IN JAPAN FOR AT LEAST PART OF THE CONTRACT ACCORDING TO CRAY RESEARCH INC CRAY ADDED THAT THE JAPANESE MAY STILL GET THE LION'S SHARE OF THE ORDERS CRAY BASED IN EAGAN MINN HAS LONG BEEN THE WORLD LEADER IN TRADITIONAL VECTOR SUPERCOMPUTERS AND JUST ENTERED THE MASSIVELY PARALLEL MARKET SMALLER US AND EUROPEAN COMPANIES HAVE PIONEERED THE MASSIVELY PARALLEL FIELD JAPANESE OFFICIALS ARE TOUTING THE RECENT AWARDS AS A SIGN THAT NUMERICAL QUOTAS AREN'T NEEDED TO SPUR US SUPERCOMPUTER SALES BUT THE US REMAINS CAUTIOUS WE'RE RESERVING JUDGMENT AND MONITORING IMPLEMENTATION UNTIL ALL AWARDS ARE MADE SAID A COMMERCE DEPARTMENT SPOKESMAN SUPERCOMPUTERS HAVE BECOME A CLOSELY WATCHED MEASURE OF THE JAPANESE COMMITMENT TO OPENING ITS HIGHTECH MARKET IN PART BECAUSE THE MULTIMILLION DOLLAR MACHINES ARE EASY TO COUNT MOREOVER US FIRMS DOMINATE THE MARKET OUTSIDE OF JAPAN GOVERNMENT PROCUREMENT ACCOUNTS FOR MANY OF THE SALES AND THERE ARE THREE JAPANESE SUPERCOMPUTER MAKERS ALL CLAMORING FOR BUSINESS EARLIER THIS YEAR JAPAN ANNOUNCED THAT THE GOVERNMENT WOULD SUPPLEMENT ITS PLANNED PURCHASE OF FOUR SUPERCOMPUTERS WITH 11 ADDITIONAL PURCHASES ACCORDING TO CRAY THE FIRST FOUR SALES WENT TO THE JAPANESE MANUFACTURERS AS DID FOUR FROM THE SUPPLEMENTAL BUDGET BUT IN THE PAST TWO WEEKS CRAY RECEIVED AN ORDER FOR A VERY LARGE C916 TO REPLACE AN OLDER CRAY SUPERCOMPUTER AT MITI CRAY DECLINED TO DISCLOSE THE SIZE OF THE CONTRACT BUT SUCH MACHINES OFTEN COST AROUND 30 MILLION JAPANESE VENDORS DIDN'T COMPETE FOR THE ORDER PRESUMABLY BECAUSE CRAY AS THE ENTRENCHED SUPPLIER HAD AN INSURMOUNTABLE ADVANTAGE LAST WEEK THE GOVERNMENT ORDERED A SUPERCOMPUTER SYSTEM FROM FUJITSU LTD THE LARGEST OF THE JAPANESE VENDORS THAT INCLUDES A MASSIVELY PARALLEL PROCESSOR MACHINE MADE BY THINKING MACHINES CORP A SPOKESWOMAN FOR THINKING MACHINES BASED IN CAMBRIDGE MASS SAID THE 128PROCESSOR SYSTEM TYPICALLY SELLS FOR AROUND 5 MILLION FRIDAY THINKING MACHINES SAID IT ALSO RECEIVED AN ORDER FOR A SMALLER MACHINE FROM HOSEI UNIVERSITY VALUED AT A LITTLE OVER 1 MILLION AND LAST WEEK MASPAR COMPUTER CORP A CLOSELY HELD FIRM IN SUNNYVALE CALIF SAID DIGITAL EQUIPMENT CORP'S JAPAN UNIT RECEIVED AN ORDER FOR A SYSTEM THAT WILL INCLUDE A MASSIVELY PARALLEL MASPAR COMPUTER THE 16000 PROCESSOR SYSTEM TYPICALLY SELLS FOR MORE THAN 15 MILLION OF THE REMAINING CONTRACTS THIS YEAR TWO CALL FOR MASSIVELY PARALLEL MACHINES AND TWO OTHERS CALL FOR SYSTEMS THAT HAVE BOTH VECTOR AND MASSIVELY PARALLEL PARTS THE VECTOR MACHINE IS THE BIGGEST DOLLAR COMPONENT A CRAY SPOKESMAN SAID NOTING THAT CRAY HAS WON ONLY ONE CONTRACT IN THE PAST TWO YEARS AND ONLY FIVE OUT OF 62 JAPANESE GOVERNMENT AWARDS IN 10 YEARS HE SAID THE PATTERN HASN'T CHANGED MUCH SO FAR AS WE CAN TELL 9312060159 931206 FEDERALMOGUL CORP SECURITIES SOUTHFIELD MICH FEDERALMOGUL CORP SAID IT FILED WITH REGULATORS A SHELF REGISTRATION COVERING THE POSSIBLE SALE OF AS MUCH AS 300 MILLION OF SECURITIES THE AUTO PARTS MAKER SAID THE FILING WILL PROVIDE FEDERALMOGUL WITH GREATER FLEXIBILITY IN FUTURE SALES OF SECURITIES IN BOTH DEBT AND EQUITY MARKETS FEDERALMOGUL INTENDS TO USE THE NET PROCEEDS OF ANY SUCH SECURITIES SALES FOR GENERAL CORPORATE PURPOSES WHICH MAY INCLUDE REFINANCING BANK DEBT 9312060158 931206 TECHNOLOGY & HEALTH DELL COMPUTER TO TAP MACGREGOR TO HEAD DESKTOPS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP IS EXPECTED TO NAME A VETERAN DEVELOPER OF HIGHEND TECHNOLOGY SYSTEMS AS THE HEAD OF ITS DESKTOP COMPUTER OPERATIONS CONTINUING A YEARLONG MANAGEMENT BUILDUP THAT HAS CHANGED THE FACE OF THIS STUMBLING MAILORDER PERSONAL COMPUTER MARKETER THE AUSTIN TEXAS COMPANY IS EXPECTED TO ANNOUNCE TODAY THAT DOUGLAS B MACGREGOR FOUNDER OF SOLBOURNE COMPUTER INC A WORKSTATION MAKER WILL JOIN THE COMPANY AT YEAR'S END AS VICE PRESIDENT OF DESKTOP COMPUTERS MR MACGREGOR 41 YEARS OLD LAST YEAR WAS FIRED BY SOLBOURNE'S BOARD AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AFTER THE COMPANY STUMBLED IN ITS EFFORTS TO UNSEAT SUN MICROSYSTEMS INC AS MARKET LEADER IN THE WORKSTATION BUSINESS SINCE THEN HE HAS MANAGED WORKSTATION DEVELOPMENT AT DATA GENERAL CORP WESTBOROUGH MASS MR MACGREGOR'S ARRIVAL AT DELL WHERE HE WILL OVERSEE ALL OF THE COMPANY'S DESKTOP PC EFFORTS COMES AMID A FLURRY OF RECENT ADDITIONS TO THE COMPANY'S TECHNICAL AND DESIGN TEAMS IN ALL DELL HAS HIRED NEARLY TWO DOZEN NEW SENIOR EXECUTIVES IN THE PAST YEAR ITS BIGGEST SPURT OF HIRING SINCE THE LATE 1980S AND DELL HAS PUT OUT THE WORD THAT IT IS LOOKING FOR AT LEAST FIVE MORE HIRES ALL OF THEM IN NEWPRODUCT DEVELOPMENT ACCORDING TO A PERSON CLOSE TO THE COMPANY WHILE DELL OFFICIALS SAY THE HIRINGS ARE MEANT TO ROUND OUT A THIN PRODUCTDEVELOPMENT TEAM AND BEEF UP AN INTERNAL CORPORATE BUREAUCRACY THAT HASN'T KEPT UP WITH THE COMPANY'S GROWTH ANALYSTS SAY THE BUILDUP POINTS TO A SHIFT IN THINKING DELL HAS LONG INSISTED THAT PERSONAL COMPUTERS ARE COMMODITY PRODUCTS WITH LITTLE ROOM LEFT FOR INNOVATION THUS DELL'S THEORY HAS BEEN THAT COMPUTER COMPANIES WILL RISE OR FALL BASED ON THE STRENGTH OF THEIR DISTRIBUTION AND MARKETING SKILLS NOT ON THEIR TECHNOLOGICAL PROWESS BUT THE COMPANY'S ONCESOARING PROFITS PLUMMETED THIS YEAR WITH THE COMPANY'S FIRST QUARTERLY LOSS IN THE FISCAL SECONDQUARTER FOLLOWED BY A 60 DECLINE IN EARNINGS IN THE THIRDQUARTER THE BLAME WAS PLACED IN PART ON A LACK OF NOTEBOOKS AND ON A SHORTAGE OF HOME RUNS IN THE REST OF THE LINE IF THESE THINGS ARE SUCH A COMMODITY WHY DO YOU NEED ALL THIS HIGHPRICED TALENT ASKS ROBERT ANASTASI AN ANALYST AT ROBINSON HUMPHREY SID FERRALES DELL'S VICE PRESIDENT OF HUMAN RESOURCES NOTES THAT MANY OF THE NEW HIRES ARE AIMED SIMPLY AT SHORING UP A PRODUCTDEVELOPMENT EFFORT THAT HAS TRAILED SALES GROWTH DESPITE ITS RECENT NOTEBOOK WOES DELL IS EXPECTED TO GROW NEARLY 50 THIS FISCAL YEAR WHICH ENDS IN JANUARY TO ALMOST 3 BILLION IN SALES MR MACGREGOR WHO HAS NO EXPERIENCE IN PCS SAID HE HOPES TO STRIKE A BALANCE BETWEEN PUSHING THE DEVELOPMENT OF NEW TECHNOLOGIES AND KEEPING FOCUSED ON THE MAINSTREAM COMPUTER BUSINESS 9312060157 931206 EXXON CORP REACHES AGREEMENT IRVING TEXAS EXXON CORP SAID IT REACHED AN AGREEMENT IN NEGOTIATIONS WITH RUSSIA FOR ACREAGE OFFSHORE SAKHALIN ISLAND CLEARING THE WAY TO CONDUCT FEASIBILITY EVALUATIONS THE ACCORD IS AN INCREMENTAL STEP THAT WILL ALLOW FURTHER NEGOTIATIONS FOR A PRODUCTIONSHARING AGREEMENT FOR AN AREA OFFSHORE SAKHALIN THE AREA INCLUDES THE CHAYVO AND ODOPTU FIELDS EXXON SAID IT EXPECTS TO CONCLUDE THE PRODUCTIONSHARING AGREEMENT WITH THE RUSSIAN AND SAKHALIN ISLAND GOVERNMENTS DURING THE FIRST HALF OF 1994 9312060156 931206 WHO'S NEWS MITSUBISHI BANK LTD MITSUBISHI BANK LTD TOKYO HIROO NOZAWA 51 WILL SUCCEED YASUMASA GOMI 50 AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THE BANK OF CALIFORNIA UNIT MR NOZAWA NOW SERVES AS GENERAL MANAGER OF ITS CORPORATE BANKING DIVISION NO 1 IN TOKYO MR GOMI PLANS TO RETURN TO JAPAN IN THE FIRST HALF OF 1994 WITH HIS NEXT ASSIGNMENT YET TO BE ANNOUNCED THE BANK SAID 9312060155 931206 NATIONAL MEDICAL TO SELL REHAB HOSPITALS TO HEALTHSOUTH FOR AT LEAST 300 MILLION BY RHONDA L RUNDLE AND EMORY THOMAS JR STAFF REPORTERS OF THE WALL STREET JOURNAL NATIONAL MEDICAL ENTERPRISES INC PLAGUED OVER THE PAST TWO YEARS BY SCANDALS IN ITS PSYCHIATRIC BUSINESS IS SHEDDING ITS PHYSICAL REHABILITATION OPERATIONS FOR AT LEAST 300 MILLION TO REFOCUS ON ITS CORE ACUTECARE HOSPITALS THE COMPANY THE NATION'S LARGEST OPERATOR OF PHYSICAL REHABILITATION HOSPITALS AGREED TO SELL MOST OF THOSE FACILITIES TO HEALTHSOUTH REHABILITATION CORP OF BIRMINGHAM ALA HEALTHSOUTH WOULD ASSUME THE MANTLE OF LARGEST OPERATOR DOUBLING ITS ANNUAL REVENUE TO ABOUT 1 BILLION IF THE DEAL CLOSES REHAB HOSPITALS OFFER INTENSIVE TREATMENT TO HELP PATIENTS IMPROVE THEIR PHYSICAL CAPABILITIES AFTER A STROKE WORKPLACE INJURY OR OTHER TRAUMA JEFFREY BARBAKOW NATIONAL MEDICAL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN SANTA MONICA CALIF THAT THE TRANSACTION UNDERSCORES OUR DETERMINATION TO CONCENTRATE OUR RESOURCES IN OUR ACUTECARE HOSPITAL MARKETS THE COMPANY IS ALSO TRYING TO SELL ITS PSYCHIATRIC HOSPITALS SIX REHAB HOSPITALS TO BE KEPT ARE LOCATED ON THE SAME CAMPUS OR CLOSE TO NATIONAL MEDICAL ACUTECARE AND PSYCHIATRIC HOSPITALS NATIONAL MEDICAL IS UNDER SERIOUS FINANCIAL STRAIN BECAUSE IT FACES ENORMOUS LEGAL LIABILITIES IN PENDING INSURANCE COMPANY MALPRACTICE AND SHAREHOLDER LAWSUITS ACCUSING THE COMPANY OF BILLING FRAUD AND PATIENT ABUSE AT ITS PSYCHIATRIC HOSPITALS IT ALSO IS THE SUBJECT OF A JUSTICE DEPARTMENT INVESTIGATION OF SUSPECTED CRIMINAL MISCONDUCT BUT ANALYSTS TENDED TO ENDORSE THE COMPANY'S CONTENTION THAT THE DEAL WAS DRIVEN AS MUCH BY STRATEGIC CONSIDERATIONS AS BY THE NEED TO RAISE CASH I DOUBT THEY WOULD HAVE HAD TO DISMANTLE THE COMPANY QUITE THIS MUCH TO SURVIVE SAID MARGO VIGNOLA AN ANALYST AT SALOMON BROTHERS INC THEY ARE CONTRACTING BACK TO THEIR CORE BUSINESS AND SELLING OFF PROBLEMATIC BUSINESSES WHERE OTHER COMPANIES HAVE MORE EXPERTISE INVESTORS APPLAUDED THE DEAL PUSHING UP PRICES OF BOTH COMPANIES' STOCKS HEALTHSOUTH JUMPED 325 OR 19 TO 20 WHILE NATIONAL MEDICAL ROSE 54 OR 625 CENTS TO 12125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY THE 28 HOSPITALS AND RELATED OUTPATIENT FACILITIES TO BE SOLD ACCOUNT FOR ABOUT 80 OF NATIONAL MEDICAL'S TOTAL REHAB BEDS ELEVEN OF THE HOSPITALS ARE OWNED BY THE COMPANY AND THE OTHERS ARE LEASED THE 300 MILLION PRICE TAG COULD RISE SOMEWHAT DEPENDING ON THE VALUE OF CERTAIN INVENTORY AND RECEIVABLES AT THE TIME OF CLOSING WHICH THE COMPANIES ANTICIPATE BY THE END OF THE YEAR THE REHAB BUSINESS ACCOUNTED FOR ABOUT 16 OR 600 MILLION OF NATIONAL MEDICAL'S REVENUE OF 376 BILLION FOR THE YEAR ENDED MAY 31 1993 REHAB OPERATING PROFIT IN THE YEAR PLUMMETED 50 TO 61 MILLION FROM THE 112 MILLION POSTED IN FISCAL 1992 NATIONAL MEDICAL ENTERED THE REHAB BUSINESS IN 1985 WITH THE ACQUISITION OF A SMALL PENNSYLVANIABASED COMPANY THOSE OPERATIONS SOON GREW INTO AN INDUSTRY LEADER THAT NATIONAL MEDICAL TOUTED AS A GROWTH VEHICLE MORE RECENTLY HOWEVER NATIONAL MEDICAL'S REHAB OCCUPANCY RATES AND PROFIT HAVE SHRUNK AS HEALTHCARE PAYERS HAVE STEPPED UP PRICING PRESSURE AND DIRECTED MORE PATIENTS INTO OUTPATIENT TREATMENT HEALTHSOUTH APPARENTLY HOPES TO REVERSE THAT TREND BY CREATING A FORMIDABLE NATIONAL CHAIN THE ACQUISITION WHICH GEOGRAPHICALLY COMPLEMENTS OUR EXISTING NETWORK OF FACILITIES WILL FURTHER ENHANCE OUR ALREADYSTRONG POSITION WITHIN THE MANAGEDCARE MARKET SAID RICHARD M SCRUSHY CHAIRMAN AND CHIEF EXECUTIVE OFFICER AFTER THE TRANSACTION CLOSES HEALTHSOUTH WOULD HAVE 45 REHAB HOSPITALS 216 OUTPATIENT CLINICS AND FOUR SPECIALTY CENTERS IN 32 STATES THE EXECUTIVE BRUSHED ASIDE SOME ANALYSTS' CONCERN THAT THE COST MIGHT BE TOO HIGH HE ESTIMATED THAT HEALTHSOUTH IS PAYING ABOUT 109000 PER BED WHICH IS SIGNIFICANTLY LESS HE SAID THAN THE 150000PERBED COST OF NEW CONSTRUCTION HE SAID THE DEAL WOULD INCREASE HEALTHSOUTH'S EARNINGS PER SHARE IN THE COMING YEAR THOUGH HE DIDN'T SAY BY HOW MUCH HEALTHSOUTH SAID IT HAS BEEN FULLY INDEMNIFIED BY NATIONAL MEDICAL FOR ANY EXISTING LIABILITIES CHRISTI SULZBACH A NATIONAL MEDICAL SENIOR VICE PRESIDENT SAID THAT IN THE UNLIKELY EVENT THERE WERE LIABILITIES IN THE REHAB AREA ARISING FROM THE JUSTICE DEPARTMENT'S INVESTIGATION OF NATIONAL MEDICAL THOSE WOULD BE NME'S RESPONSIBILITY MS SULZBACH SAID THAT NONE OF THE REHAB FACILITIES WAS SERVED WITH SUBPOENAS OR SEARCH WARRANTS IN AUGUST WHEN THE FEDERAL BUREAU OF INVESTIGATION AS PART OF A CRIMINAL INVESTIGATION SWEPT THROUGH COMPANY HEADQUARTERS AND MORE THAN 20 OTHER LOCATIONS NATIONAL MEDICAL ALSO FACES A MAJOR LAWSUIT BY A GROUP OF INSURANCE COMPANIES ACCUSING THE COMPANY OF FILING HUNDREDS OF MILLIONS OF DOLLARS IN FRAUDULENT PSYCHIATRIC CLAIMS NATIONAL MEDICAL RECENTLY SETTLED TWO SIMILAR SUITS FOR A TOTAL OF AS MUCH AS 125 MILLION 9312060154 931206 FINANCING BUSINESS FARAH INC FARAH INC EL PASO TEXAS BEGAN AN OFFER TO EXCHANGE THE 3925000 OF ITS 5 CONVERTIBLE DEBENTURES OUTSTANDING DUE FEB 1 1994 FOR 85 CONVERTIBLE SUBORDINATED DEBENTURES DUE FEB 1 2004 THE APPAREL MAKER SAID THE EXCHANGE OFFER EXPIRES JAN 7 THE 5 DEBENTURES MAY BE CONVERTED INTO COMMON STOCK AT THE RATE OF 3762 A SHARE FARAH'S STOCK CLOSED AT 950 UP 125 CENTS IN TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE 9312060153 931206 WHO'S NEWS DIED ICHIRO ISODA 80 FORMER PRESIDENT AND CHAIRMAN OF SUMITOMO BANK FRIDAY IN OSAKA JAPAN OF HEART TROUBLE 9312060152 931206 WHO'S NEWS KELLOGG CO KELLOGG CO BATTLE CREEK MICH HAROLD A POLING RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FORD MOTOR CO WAS NAMED A DIRECTOR OF THIS FOOD CONCERN THERE ARE NOW 13 BOARD MEMBERS 9312060151 931206 TANDY CORP'S SALES RISE 19 FORT WORTH TEXAS TANDY CORP SAID US RETAIL SALES FOR NOVEMBER ROSE 19 TO 3951 MILLION FROM 3323 MILLION LAST YEAR THE COMPUTER AND CONSUMERELECTRONICS RETAILER SAID SALES IN STORES OPEN A YEAR OR MORE INCREASED 6 FROM THE PRIOR YEAR NOT INCLUDING SALES FROM STORES CLOSED IN ITS RECENT RESTRUCTURING 9312060150 931206 CANADA JOBLESS RATE DROPS OTTAWA CANADA'S UNEMPLOYMENT RATE DECLINED TO 11 OF THE WORK FORCE IN NOVEMBER FROM 111 IN OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID IT WAS THE FOURTH CONSECUTIVE MONTHLY DECLINE IN THE UNEMPLOYMENT RATE WHICH STOOD AT 116 IN JULY 9312060149 931206 MARKETING & MEDIA REUTERS BUYS STAKE IN FIRM THAT LINKS AD AGENCIES TO TV BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL REUTERS WHICH SELLS ELECTRONIC NEWS AND FINANCIALTRADING SERVICES SAID IT HAS BOUGHT A MINORITY STAKE IN A FLEDGLING FIRM THAT LINKS AD AGENCIES TO TELEVISION STATIONS BY COMPUTER ALLOWING THEM TO BUY AND SELL COMMERCIAL TIME ELECTRONICALLY REUTERS NEWMEDIA TECHNOLOGIES A UNIT OF REUTERS HOLDINGS PLC INVESTED 3 MILLION IN ADVALUE MEDIA TECHNOLOGIES INC A CLOSELY HELD FIRM WHOSE OTHER OWNERS INCLUDE WESTINGHOUSE ELECTRIC CORP'S WESTINGHOUSE BROADCASTING CO RADNOR VENTURE PARTNERS AN AFFILIATE OF SAFEGUARD SCIENTIFICS INC AND CAMBRIDGE TECHNOLOGY PARTNERS A SOFTWARE COMPANY PARTLY OWNED BY SAFEGUARD IN EXCHANGE FOR THE INVESTMENT REUTERS RECEIVES A MINORITY STAKE IN ADVALUE BUFORD SMITH PRESIDENT OF REUTERS NEWMEDIA SAID THE STAKE WAS GREATER THAN 20 DECLINING TO BE MORE SPECIFIC DAVID GRAVES PRESIDENT OF ADVALUE SAID THAT AS THE NUMBER OF TV CHANNELS GROWS AN ONLINE SERVICE SUCH AS ADVALUE WILL BE INCREASINGLY IN DEMAND RIGHT NOW MR GRAVES SAID THE BUYING AND SELLING OF SPOT OR REGIONAL COMMERCIAL TELEVISION TIME ROUGHLY A 16 BILLION MARKET IS INEFFICIENT ALMOST ALL THE ORDERS ARE AGREED TO VERBALLY THE CONTRACTS ARE ALMOST NEVER SIGNED THERE ARE A BLIZZARD OF REVISIONS AND ALL THAT IS DONE OVER THE PHONE ELECTRONIC MEDIABUYING IS FASTER AND REQUIRES LESS MANPOWER MR GRAVES SAID AND PERHAPS MOST IMPORTANT OF ALL HE SAID IT LEAVES AN ELECTRONIC PAPER TRAIL ADVERTISERS ARE DEMANDING A HIGHER LEVEL OF ACCOUNTABILITY FROM THEIR AGENCIES AND AGENCIES ARE DEMANDING STRICTER ACCOUNTABILITY FROM STATIONS HE SAID WESTINGHOUSE BROADCASTING'S FIVE TELEVISION STATIONS IN BOSTON BALTIMORE PHILADELPHIA PITTSBURGH AND SAN FRANCISCO ARE PARTICIPATING IN THE SERVICE TWO AD AGENCIES YOUNG & RUBICAM INC AND INTERPUBLIC GROUP OF COS' MCCANNERICKSON HAVE SIGNED MULTIYEAR AGREEMENTS TO SUBSCRIBE TO THE SERVICE SAID MR GRAVES SIX MORE STATIONS AND NINE MORE AGENCIES ARE TESTING IT HE ADDED ONE AGENCY EVALUATING THE SERVICE SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING GIVES MIXED REVIEWS TECHNOLOGICALLY IT SOUNDS SIMPLE BUT WE HAVEN'T BEEN ABLE TO GET THE BUGS OUT YET SAID SAM SOTIRIOU SENIOR VICE PRESIDENT AND DIRECTOR OF MEDIA RESEARCH ADVALUE WHICH HAS HAD THE SERVICE IN TEST FOR MORE THAN A YEAR SIGNED UP ITS FIRST SUBSCRIBERS MCCANN AND Y&R IN AUGUST IT SAID SUBSCRIPTION RATES FOR AGENCIES AND STATIONS WILL BE BASED ON HOW MUCH THEY USE THE SERVICE MR GRAVES SAID A MAJOR AGENCY COULD EXPECT ITS SUBSCRIPTION RATE TO BE IN THE LOW SIX FIGURES ADVALUE SAYS IT PLANS TO LAUNCH A RADIO VERSION EARLY NEXT YEAR FOLLOWED BY CABLE AND NETWORK TELEVISION SERVICES 9312060148 931206 ECONOMY OIL OUTPUT BY OPEC MEMBERS IS FALLING BUT RATE OF DECLINE TRAILS DROP IN PRICES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS FALLING BUT NOT AS FAST AS OIL PRICES FOR THE FIRST TIME IN YEARS ACCORDING TO OUTSIDE MONITORS OF OPEC THE EXPORTERS NOW ARE FULLY COMPLYING WITH THEIR QUOTAS AS A RESULT THE MONITORS SAID OPEC'S CRUDE OUTPUT IN NOVEMBER WAS DOWN 100000 TO 200000 BARRELS FROM OCTOBER AND SEPTEMBER LEVELS IT IS ACADEMIC NOW BUT FOR THE RECORD OPEC STUCK CLOSE TO ITS PRODUCTION CEILING IN NOVEMBER SAID EDWARD N KRAPELS PRESIDENT OF WASHINGTONBASED ENERGY SECURITY ANALYSIS INC WHICH TRACKS OIL SUPPLIES WORLDWIDE THE NEW PRODUCTION DISCIPLINE OBVIOUSLY HAS COME TOO LATE TO PREVENT OIL PRICES WHICH SETTLED BELOW 15 A BARREL IN THE US LAST WEEK FROM FALLING TO FIVEYEAR LOWS BUT SOME ANALYSTS SAID IT MAY HELP TO EASE THE OIL INDUSTRY'S OVERSUPPLY PROBLEM DURING THE WINTER MONTHS AS OIL DEMAND RISES SEASONALLY OPEC'S OIL MINISTERS ARE IN FACT BANKING ON THAT AND APPARENTLY AREN'T PLANNING AN EMERGENCY MEETING TO TRY TO FIRM UP THE EXTREMELY WEAK OIL MARKET UNLESS THE BOTTOM FALLS OUT THERE WON'T BE ANY SUCH MOVE ALTHOUGH THERE WILL BE STRICT QUOTA COMPLIANCE ALIRIO PARRA VENEZUELA'S OIL MINISTER WHO WAS IN THE US FRIDAY SAID IN AN INTERVIEW OPEC'S FOURTHQUARTER PRODUCTION CEILING SET IN SEPTEMBER IS 245 MILLION BARRELS A DAY BUT IT WAS THE REFUSAL OF THE OIL MINISTERS AT THEIR PRETHANKSGIVING MEETING TO BOW TO MARKET AND MEDIA PRESSURES BY FURTHER CUTTING THIS CEILING THAT LED TO LAST WEEK'S STEEP DROP OF MORE THAN 1 A BARREL IN OIL PRICES THE CLOSEST TO AN OFFICIAL FIGURE ON OPEC'S NOVEMBER PRODUCTION A CONSENSUS OF VARIOUS INDUSTRY ESTIMATES WON'T BE AVAILABLE UNTIL TODAY WHEN THE INTERNATIONAL ENERGY AGENCY RELEASES ITS MONTHLY OIL MARKET REPORT BUT THE RESULTS OF THE AGENCY'S SURVEY ARE LIKELY TO BE IN LINE WITH OTHERS THESE EARLY ESTIMATES FOR OPEC'S NOVEMBER OUTPUT GENERALLY RANGE BETWEEN 246 MILLION AND 247 MILLION BARRELS A DAY ENERGY SECURITY ANALYSIS ASSESSES OPEC OUTPUT AT THE LOWER END OF THE RANGE THE ENERGY COMPASS A LONDONBASED OIL PUBLICATION PUTS NOVEMBER PRODUCTION AT 24650000 BARRELS A DAY THE SLIGHT EXCESS OUTPUT OVER THE CEILING IS DUE TO IRAQ WHICH HAS AN OPEC QUOTA OF ONLY 400000 BARRELS A DAY BUT IS PRODUCING ABOUT 500000 BARRELS DAILY WHATEVER IRAQ PRODUCES DOESN'T REALLY AFFECT THE WORLDSUPPLY PICTURE SO LONG AS IRAQ REMAINS BANNED BY THE UNITED NATIONS FROM EXPORTING ITS OIL AND THE OTHER 11 MEMBERS INCLUDING KINGPIN SAUDI ARABIA ARE WITHIN THEIR QUOTAS THIS MEANS THAT TOTAL OPEC OUTPUT IS WELL BELOW ITS DECADEHIGH PRODUCTION OF 25 MILLION BARRELS A DAY AS RECENTLY AS SEPTEMBER THAT OVERPRODUCTION IS NOW SAID TO BE A FACTOR IN THE CURRENT EROSION OF OIL PRICES BECAUSE OF THE MONTH OR TWO IN TRANSIT TIME REQUIRED BY OIL TANKERS THOSE SUPPLIES JUST RECENTLY BEGAN REACHING US SHORES HELPING TO BALLOON DOMESTIC CRUDE INVENTORIES 9312060146 931206 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 13/16 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 49 DAYS 333 50 TO 89 DAYS 332 90 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 346 30 DAYS 344 60 DAYS 344 90 DAYS CERTIFICATES OF DEPOSIT 267 ONE MONTH 273 TWO MONTHS 273 THREE MONTHS 279 SIX MONTHS 303 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 345 ONE MONTH 335 THREE MONTHS 345 SIX MONTHS BANKERS ACCEPTANCES 333 30 DAYS 327 60 DAYS 328 90 DAYS 328 120 DAYS 330 150 DAYS 330 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/2 3 3/8 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/2 ONE MONTH 3 1/2 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 NOVEMBER 29 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 312 13 WEEKS 326 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 707 60 DAYS 714 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 705 60 DAYS 715 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312060145 931206 INTERNATIONAL WESTERN GERMANY'S UNEMPLOYMENT ROSE IN NOVEMBER BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT WESTERN GERMAN UNEMPLOYMENT ROSE AGAIN IN NOVEMBER AMID SIGNS OF ERODING CONFIDENCE IN CHANCELLOR HELMUT KOHL'S THREEPARTY GOVERNMENT COALITION WESTERN GERMANY'S JOBLESS TOTAL CLIMBED TO 241 MILLION IN NOVEMBER FROM 236 MILLION IN OCTOBER LIFTING THE JOBLESS RATE TO 78 FROM 76 THE FEDERAL LABOR OFFICE SAID FRIDAY AN ADDITIONAL 635700 WORKERS WERE REPORTED TO BE ON SHORTENED WORKING SCHEDULES THE LATEST JOBLESS TALLY UP BY MORE THAN A HALFMILLION FROM A YEAR AGO CONFIRMED PROJECTIONS THAT WESTERN GERMANY'S JOBS CRISIS COULD WORSEN IN COMING MONTHS AS INDUSTRIES CUT PAYROLLS TO REDUCE COSTS JOBLESSNESS EASED IN EASTERN GERMANY WHERE THE 115 MILLION JOBLESS TOTAL WAS 14000 LESS THAN IN OCTOBER REDUCING THE JOBLESS RATE TO 151 FROM 153 BUT ABOUT AN ADDITIONAL 14 MILLION EASTERN GERMANS ARE PROTECTED FROM JOBLESSNESS BY GOVERNMENT JOBCREATION PROGRAMS EARLY RETIREMENT AND SHORTENED SHIFTS HOPES FOR ECONOMIC RECOVERY ALSO WERE SET BACK BY A DECLINE IN INDUSTRY ORDER BOOKINGS IN OCTOBER THE ECONOMICS MINISTRY SAID THAT MANUFACTURING ORDERS EASED A PRELIMINARY 03 IN THE MONTH AFTER RISING BY A REVISED 22 MONTHLY RATE IN SEPTEMBER AFTER SIGNS OF STABILIZATION IN THE THIRD QUARTER ECONOMISTS NOW EXPECT 1993'S FOURTHQUARTER AND FIRSTQUARTER OF 1994 TO INDICATE A DIFFICULT RECOVERY FROM GERMANY'S WORST RECESSION SINCE POSTWAR RECONSTRUCTION CHANCELLOR KOHL CONCEDED FRIDAY THAT RECESSION RISING JOBLESSNESS AND A SERIES OF POLITICAL MISHAPS HAVE STEERED HIS COALITION GOVERNMENT INTO HEAVY SEAS WE HAVE DIFFICULT PROBLEMS MR KOHL SAID IN A TELEVISION INTERVIEW WE HAVE A TOUGH RECESSION AND THE POLLS SHOW THAT WE DON'T HAVE THE WIND AT OUR BACKS 9312060144 931206 FLIGHTSAFETY'S BUYBACK NEW YORK FLIGHTSAFETY INTERNATIONAL INC AUTHORIZED AN INCREASE IN ITS STOCKREPURCHASE PROGRAM TO FOUR MILLION COMMON SHARES FROM THREE MILLION FLIGHTSAFETY WHICH PROVIDES TRAINING FOR PILOTS AND AIRCRAFTMAINTENANCE TECHNICIANS SAID IT HAS REPURCHASED 24 MILLION SHARES UNDER THE PROGRAM SINCE ITS INITIATION IN FEBRUARY 9312060143 931206 WHO'S NEWS TIMES MIRROR CO TIMES MIRROR CO LOS ANGELES LARRY W WANGBERG 51 YEARS OLD GROUP VICE PRESIDENT WAS NAMED SENIOR VICE PRESIDENT OF THIS MEDIA COMPANY A NEW POST AND WILL CONTINUE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE TIMES MIRROR CABLE TELEVISION UNIT SENIOR VICE PRESIDENT DONALD F WRIGHT 59 WAS NAMED TO SUCCEED RICHARD T SCHLOSBERG III AS GROUP EXECUTIVE FOR THE COMPANY'S EASTERN NEWSPAPERS AND MAGAZINES MR WRIGHT CONTINUES AS SENIOR VICE PRESIDENT OF THE PARENT EDWARD E JOHNSON 49 SENIOR VICE PRESIDENT FOR PROFESSIONAL PUBLISHING WAS GIVEN THE ADDITIONAL RESPONSIBILITY OF OVERSEEING THE MATTHEW BENDER LEGALPUBLISHING UNIT HE ASSUMES THE RESPONSIBILITY FROM CURTIS A HESSLER WHO ALONG WITH MR SCHLOSBERG WAS NAMED AN EXECUTIVE VICE PRESIDENT 9312060142 931206 FHP UNIT CUTS 230 JOBS FOUNTAIN VALLEY CALIF FHP INC SAID IT CUT 230 OF ITS NEARLY 11000 STAFF POSITIONS TO MEET THE COSTCUTTING DEMANDS OF HEALTHCARE REFORM EVEN THOUGH FHP OFFERS A COSTEFFECTIVE SOLUTION TO SPIRALING HEALTHCARE COSTS OUR LARGEST CUSTOMERS THE FEDERAL GOVERNMENT AND EMPLOYER GROUPS ARE DEMANDING THAT WE CONTINUE TO CONTROL OUR EXPENSES THE MANAGED HEALTHCARE AND INSURANCE CONCERN SAID MOST OF THE JOBS ELIMINATED WERE ADMINISTRATIVE FHP IS A UNIT OF FHP INTERNATIONAL CORP 9312060141 931206 CHAMBERS DEVELOPMENT CO SALE PITTSBURGH CHAMBERS DEVELOPMENT CO SAID IT COMPLETED THE SALE OF ITS COLLECTION AND HAULING OPERATION IN CONWAY SC TO WASTE INDUSTRIES INC FOR ABOUT 5 MILLION CHAMBERS EXPECTS TO RECORD A GAIN ON THE TRANSACTION OF ABOUT 2 MILLION AND THE PROCEEDS WILL BE USED FOR DEBT REDUCTION AND GENERAL CORPORATE PURPOSES 9312060140 931206 CORPORATE FOCUS BCE FACES PROMISES AND PERILS OF TELECOMMUNICATIONS WITH JONES DEAL COMPANY BETS ON INTERLOCKING CABLE PHONES MULTIMEDIA BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL LAST WEEK'S FLURRY OF MOVES BY BCE INC LEAVES CANADA'S BIGGEST PUBLICLY TRADED COMPANY REFOCUSED ON TELECOMMUNICATIONS AND POISED TO GROW INTERNATIONALLY BY AGREEING TO INVEST AS MUCH AS 400 MILLION FOR A 30 INTEREST IN COLORADOBASED CABLETELEVISION OPERATOR JONES INTERCABLE INC WITH AN OPTION TO EVENTUALLY TAKE CONTROL BCE HAS TAKEN A SEAT AT THE HIGHSTAKES GAME OF DEVELOPING US MULTIMEDIA NETWORKS AND BY SELLING ITS TROUBLED FINANCIALSERVICES AND REALESTATE BUSINESSES BCE COMPLETES A THREEYEAR DRIVE TO SHED NONTELECOMMUNICATIONS ASSETS ACCUMULATED DURING THE 1980S THE BAD NEWS LOSSES ON ITS LATEST ASSET SALES ENSURE THAT BCE'S RUN AS CANADA'S MOST PROFITABLE COMPANY IN RECENT YEARS WILL END WITH A THUD THE 750 MILLION CANADIAN DOLLARS US563 MILLION IN FOURTHQUARTER WRITEOFFS ON THE SALE OF ITS MONTREAL TRUSTCO AND REALESTATE UNITS WILL LEAVE BCE IN THE RED FOR THE YEAR MARKET REACTION TO THE THURSDAY EVENING DISCLOSURES SEEMED CAUTIOUSLY UPBEAT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BCE SHARES CLOSED FRIDAY AT 3475 UP 25 CENTS WHILE THE ASSET WRITEDOWNS HAD BEEN LARGELY DISCOUNTED THE JONES DEAL WAS A BIT OF A SURPRISE SAYS JOHN GREINER AN ANALYST WITH WOOD GUNDY INC TELECOMMUNICATIONS IS A VERY EXCITING BUSINESS FOR THE NINETIES AND THEY AT BCE KNOW IT VERY WELL HE SAYS I THINK THEY DESERVE CREDIT FOR AN AGGRESSIVE MOVE BCE STILL CONFRONTS PLENTY OF CHALLENGES ITS BIGGEST OPERATING UNITS BELL CANADA AND 52OWNED NORTHERN TELECOM LTD ARE GOING THROUGH PAINFUL ADJUSTMENTS TO INTENSIFYING COMPETITION BELL CANADA CANADA'S BIGGEST TELEPHONE COMPANY IS SLASHING SPENDING TO COPE WITH NEW RIVALS IN ITS LONGDISTANCE BUSINESS NORTHERN TELECOM A MAJOR TELECOMMUNICATIONS EQUIPMENT MAKER TOOK A US1 BILLION SECONDQUARTER RESTRUCTURING CHARGE THAT CAUSED BCE TO POST A C147 MILLION LOSS FOR THE NINE MONTHS ENDED SEPT 30 AND AS PROMISING AS THE BRAVE NEW WORLD OF CONVERGING TELECOMMUNICATIONS TECHNOLOGIES SEEMS IT IS ALSO FRAUGHT WITH UNCERTAINTY THERE ARE A LOT OF UNKNOWNS INCLUDING REGULATORY DECISIONS TECHNOLOGICAL DEVELOPMENTS AND MARKET RESPONSE SAYS LR WILSON BCE'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER WE'RE PROBABLY A LITTLE MORE CAUTIOUS THAN SOME ABOUT PROSPECTS FOR THE MULTIMEDIA BUSINESS BUT WE BELIEVE CONVERGENCE IN SOME FORM IS GOING TO HAPPEN WE'RE PLACING SOME BETS ON SEVERAL FRONTS AND THE CABLE SIDE OF THE BUSINESS IS A BET THAT WE THINK MAKES SENSE MR WILSON SAYS THE JONES TIEUP REPRESENTS A MODEST RISK KIND OF STRATEGY HE ADDS WHILE THE BCE AGREED TO PAY A HEFTY PREMIUM TO THE MARKET PRICE FOR ITS JONES SHARES THE COMMITMENT IS DWARFED BY THE PROPOSED MULTIBILLIONDOLLAR MERGER OF BELL ATLANTIC CORP AND CABLE GIANT TELECOMMUNICATIONS INC FOR EXAMPLE AN EXISTING CABLETELEPHONE JOINT VENTURE BY BCE AND JONES IN THE HIGHLY DEREGULATED BRITISH MARKET WAS THE INSPIRATION FOR THEIR PROPOSED TIEUP IN THE US MARKET SAYS DEREK BURNEY CHAIRMAN AND CHIEF EXECUTIVE OF BCE'S INTERNATIONAL UNIT THE UNIT BCE TELECOM INTERNATIONAL INC MANAGES BCE'S INTERNATIONAL INVESTMENT AND CONSULTING INTERESTS MR BURNEY A LONGTIME CIVIL SERVANT WHO WAS CANADA'S AMBASSADOR TO THE US BEFORE JOINING BCE LAST JANUARY SAYS BCE'S EQUITY CONTRIBUTION TO JONES SHOULD PROVIDE ENORMOUS OPPORTUNITY TO GROW IN THE CABLE BUSINESS AND AS TELECOMMUNICATIONS TECHNOLOGIES CONVERGE AND CUSTOMERS SEEK MORE VARIED ENTERTAINMENT BCE'S TELEPHONE AND NETWORKMANAGEMENT EXPERTISE SHOULD HELP THE COMPANIES CASH IN ON ALL THE NEW SERVICES COMING THROUGH CABLE BCE'S CABLE BET FITS INTO ITS BROADER EFFORT TO EXPAND INTERNATIONALLY IN JANUARY BCE PAID MORE THAN US700 MILLION FOR A 20 STAKE IN MERCURY COMMUNICATIONS LTD A BRITISH TELEPHONE SUBSIDIARY OF CABLE & WIRELESS PLC AT BCE'S ANNUAL MEETING IN MAY MR WILSON TOLD SHAREHOLDERS THE COMPANY PLANS TO SPEND C2 BILLION INTERNATIONALLY OVER THE NEXT FIVE YEARS IN AN INTERVIEW FRIDAY MR WILSON SAID THAT FIGURE WAS SORT OF AN INDICATIVE TARGET THAT COULD INCREASE AS CIRCUMSTANCES DICTATE BCE TELECOM INTERNATIONAL MAY SEEK TO FINANCE THE JONES INVESTMENT BY ISSUING SHARES TO THE PUBLIC OR IN A PRIVATE PLACEMENT MR WILSON SAID THE TRANSACTION WON'T CLOSE FOR THREE TO FIVE MONTHS AND IT'S AN ADVANTAGEOUS TIME TO ACCESS CAPITAL MARKETS FOR THAT KIND OF DEVELOPMENT IN THIS INDUSTRY SEPARATELY BCE AND CABLE & WIRELESS ARE EXPLORING WAYS TO EXTEND THEIR PARTNERSHIP MR WILSON SAID ONE POSSIBILITY UNDER SERIOUS DISCUSSION AT THE MOMENT INVOLVES BUSINESS IN SOUTHEAST ASIA HE SAID HE DECLINED TO BE MORE SPECIFIC ON THE HOME FRONT THE PICTURE IS LESS ROSY BELL CANADA TWO MONTHS AGO ANNOUNCED PLANS TO SLASH PERSONNEL AND CAPITAL SPENDING NEXT YEAR THE COMPANY WHICH SERVES MORE THAN SEVEN MILLION CUSTOMERS IN ONTARIO AND QUEBEC HAS SEEN COMPETITORS CUT INTO ITS LONGDISTANCE EARNINGS FOLLOWING DEREGULATION OF THAT BUSINESS BELL CANADA'S HAND WAS FORCED AFTER REGULATORS REJECTED ITS BID TO RAISE LOCAL PHONE RATES TRADITIONALLY SUBSIDIZED BY LONGDISTANCE PROFITS THE DEVELOPMENTS PROMPTED CREDITRATING AGENCIES TO DOWNGRADE BELL CANADA'S DEBT CURRENTLY BELL CANADA ISN'T ALLOWED TO OPERATE CANADIAN CABLE BUSINESSES IN RECENT REGULATORY HEARINGS IT HAS URGED THE GOVERNMENT TO ALTER THAT IF REGULATORY CHANGES ENABLE THE ENTRANCE TO THE CABLE AND MULTIMEDIA ARENA THAT WOULD BE A HIGH PRIORITY MR WILSON SAYS THE MAJOR DETERMINANTS OF INVESTMENT IN OUR INDUSTRY TODAY ARE TECHNOLOGY AND REGULATION SAYS MR WILSON EVERY COUNTRY IS GOING THROUGH A LOT OF REGULATORY CHANGES AND THAT'S GOING TO BE IMPORTANT IN DETERMINING WHERE CAPITAL FLOWS MEANWHILE AT NORTHERN TELECOM JEAN MONTY FORMERLY HEAD OF BELL CANADA HAS TAKEN ON THE FORMIDABLE TASK OF SUPERVISING A RESTRUCTURING IN JULY HE ANNOUNCED PLANS TO LAY OFF 9 OF THE COMPANY'S 60000 WORKERS AND ADDRESS SOFTWARE PROBLEMS THAT HAVE HURT THE CORE SWITCHINGEQUIPMENT BUSINESS MR MONTY HAS SET SOME FAIRLY AMBITIOUS GROWTH TARGETS FOR NORTHERN TELECOM MR WILSON SAYS THE TORONTO UNIT AIMS TO RAISE ANNUAL REVENUES TO AROUND US12 BILLION BY 1997 FROM ABOUT US8 BILLION CURRENTLY MR WILSON SAYS AND IT IS SEEKING TO RESTORE A HEALTHY RETURN ON CAPITAL BACK TO SORT OF THE 15 LEVEL ANALYSTS SAY THAT REPRESENTS A TALL ORDER NOT ONLY MUST NORTHERN TELECOM FIX THE COMPLEX SOFTWARE PROBLEM IN ITS SWITCHING BUSINESS IT MUST ALSO PROVE IT CAN CARVE OUT A LEADERSHIP POSITION IN THE NEW TECHNOLOGIES FOR EMERGING MULTIMEDIA NETWORKS DESPITE THE DIFFICULTIES MR WILSON SAYS NORTHERN TELECOM'S MOMENTUM IS FORWARD 9312060139 931206 FRIENDLY FANS SADDLE UP TO HELP THIS COWBOY RIDE A ROUGH TRAIL BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS YOUR BOSS ANNOUNCES TO THE WORLD THAT YOU ARE A VALUABLE PART OF HIS OPERATION 850 ELEMENTARYSCHOOL PUPILS WRITE YOU FAWNING LETTERS AND ADULTS WHO HAVE NEVER MET YOU START A FAN CLUB TO HONOR YOU IT'S BEEN A PRETTY GOOD WEEK RIGHT NOT IF YOU'RE LEON LETT ON THANKSGIVING DAY IN THE CLOSING SECONDS OF A TENSE STRUGGLE THE 25YEAROLD DALLAS COWBOYS DEFENSIVE LINEMAN CAME FLYING THROUGH A PACK OF PLAYERS IGNORING THE ENTREATIES OF HORRIFIED TEAMMATES IN PURSUIT OF THE BALL AFTER A BLOCKED MIAMI DOLPHIN FIELDGOAL ATTEMPT HAD HE LEFT IT ALONE THE COWBOYS WOULD HAVE TAKEN POSSESSION AND RUN OUT THE CLOCK AS IT WAS THE DOLPHINS RECOVERED THE BALL AND KICKED THE WINNING FIELD GOAL AS TIME EXPIRED THIS CAME ON THE HEELS OF MR LETT'S SUPER BOWL GAFFE LAST JANUARY WHEN HE PREMATURELY CELEBRATED A TOUCHDOWN HE WAS ABOUT TO SCORE ALLOWING AN OPPONENT TO BAT THE BALL OUT OF HIS HAND IN TEXAS WHERE FOOTBALL IS A RELIGION MR LETT WAS HEAPED WITH ABUSE INCLUDING SOME VICIOUS MAIL IN THE WAKE OF THE SUPER BOWL AND AFTER HIS THANKSGIVING TURKEY IT LOOKED LIKE THE ABUSE WAS GOING TO START ALL OVER AGAIN SPORTS PAGES SPOKE OF A FIASCO A LETTDOWN AND ANOTHER CONFUSED AND INCOMPREHENSIBLE MISCUE BY A TWOTIME LOSER WHAT WAS HE THINKING MORE THAN ONE WRITER ASKED MR LETT CRIED HIS EYES OUT AFTER THE GAME ACCORDING TO HIS COACH AND HAS REFUSED TO TALK TO REPORTERS ISSUING ONLY A THREESENTENCE APOLOGY SAYING HE WAS DEEPLY HURT FOR HIS TEAM IF ANYONE NEEDED AN EMOTIONAL BOOST IT SEEMED IT WAS MR LETT THAT'S WHEN THE SUPPORT GROUP CAME TO THE RESCUE FIRST CAME COWBOYS COACH JIMMY JOHNSON WHO TOLD REPORTERS THE THANKSGIVING DAY LOSS WAS THE RESULT OF MANY THINGS AND INSISTED THAT MR LETT IS A BIG BIG PART OF THIS FOOTBALL TEAM AT ABOUT 300 POUNDS OF COURSE THAT'S A GIVEN STUDENTS AT HANBY ELEMENTARY SCHOOL IN NEARBY MESQUITE WROTE MR LETT A STACK OF LETTERS TELLING HIM TO BELIEVE IN HIMSELF A GROUP OF FRIENDS MEANWHILE FORMED THE LEON LETT FAN CLUB AND SAY THEY'VE BEEN OVERWHELMED BY AS MANY AS 1000 PHONE CALLS LEON WE LOVE YOU THE CLUB'S TSHIRTS SAY THE HATS LETT'S GO AS FOR MR LETT HE GETS HIS FIRST CHANCE TO REDEEM HIMSELF TONIGHT WHEN THE COWBOYS PLAY THE PHILADELPHIA EAGLES AT TEXAS STADIUM 9312060138 931206 BUSINESS BRIEF GENERAL ELECTRIC CO GE CAPITAL AGREES TO BUY BANK OF AUSTRIA SUBSIDIARY GE CAPITAL CORP THE FINANCIAL SERVICES SUBSIDIARY OF GENERAL ELECTRIC CO SAID IT SIGNED AN AGREEMENT TO ACQUIRE MERCURBANK FROM BANK OF AUSTRIA FOR 83 MILLION AS PART OF ITS PLAN TO EXPAND IN EUROPE VIENNABASED MERCURBANK A CONSUMER AND AUTO FINANCE COMPANY HAD 710 MILLION IN ASSETS IN SEPTEMBER IT PROVIDES CONSUMER CREDIT AND AUTOMOBILE LOANS AND LEASES TO ABOUT 100000 CUSTOMERS THROUGH 33 BRANCHES THE ACQUISITION OF MERCUR IS ANOTHER STEP IN GE CAPITAL'S FOCUSED APPROACH TO EXPANSION IN EUROPE AND IS OUR INITIAL ENTRY INTO THE CONSUMERORIENTED FINANCE MARKET IN AUSTRIA GE CAPITAL SAID THE AGREEMENT REQUIRES THE APPROVAL OF AUSTRIAN REGULATORS GE CAPITAL HAS 109 BILLION IN ASSETS 9312060137 931206 MARKETING & MEDIA WARNER BROS SIGNS TRIBUNE'S WGN TWO OTHERS IN RACE FOR FIFTH TV NETWORK BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S WARNER BROS SAID IT SIGNED UP TWO BROADCAST STATION AFFILIATES AND TRIBUNE CO'S CHICAGO SUPERSTATION WGN IN THE RACE TO LAUNCH A NEW FIFTH BROADCAST TELEVISION NETWORK AS A SUPERSTATION WGN'S LOCAL BROADCAST SIGNAL IS PICKED UP AND DISTRIBUTED VIA SATELLITE TO CABLE SYSTEMS NATIONWIDE THE DEAL CATAPULTS THE WB NETWORK AHEAD OF ANOTHER NEW NETWORK PLANNED BY PARAMOUNT COMMUNICATIONS INC AND CHRISCRAFT INDUSTRIES INC BY GUARANTEEING THAT THE WB NETWORK WILL BE SEEN IN 73 OF THE COUNTRY WHEN IT STARTS NEXT FALL EACH NEW NETWORK MUST REACH ABOUT 80 OF THE COUNTRY'S TV HOUSEHOLDS TO SECURE ADVERTISERS THE PARAMOUNT NETWORK WHICH PLANS A JANUARY 1995 LAUNCH CURRENTLY HAS DEALS TO REACH ABOUT 38 OF THE COUNTRY PARAMOUNT DECLINED TO COMMENT ON THE WARNER BROS ANNOUNCEMENT ALL OF PARAMOUNT'S COVERAGE IS THROUGH LOCAL BROADCAST STATIONS CURRENTLY NOT AFFILIATED WITH ANOTHER NETWORK WARNER BROS'S DEAL WITH WGN BY CONTRAST MEANS THE NEW NETWORK WILL BE AVAILABLE ONLY VIA CABLE IN SOME PARTS OF THE COUNTRY A DRAWBACK BECAUSE NOT EVERY HOUSEHOLD SUBSCRIBES TO CABLE IF WARNER BROS SIGNS LOCAL STATIONS IN AREAS WHERE WGN IS ALSO AVAILABLE THE WGN SIGNAL WILL BE BLACKED OUT THE OTHER TWO STATIONS SIGNED BY THE WB NETWORK ARE MINNEAPOLIS'S KLGT AND WMCC IN INDIANAPOLIS TRIBUNE CO'S SIX OTHER INDEPENDENT TELEVISION STATIONS ARE AFFILIATES OF THE WB NETWORK INITIALLY WGN WAS GOING TO BE A BACKUP AFFILIATE IF THE NETWORK COULDN'T FIND ANOTHER CHICAGO OUTLET BECAUSE THE WB NETWORK PROGRAMMING WOULD INTERFERE WITH WGN'S HEAVY SCHEDULE OF LOCAL SPORTS SINCE THE NETWORK WAS ANNOUNCED HOWEVER WARNER BROS HAS SCALED BACK THE ROLLOUT FROM TWO NIGHTS OF PROGRAMMING IN THE FIRST YEAR TO JUST ONE NIGHT MAKING IT EASIER FOR WGN TO SCHEDULE GAMES AROUND THE NETWORK SHOWS SAID DENNIS FITZSIMONS PRESIDENT OF TRIBUNE TELEVISION THE WGN AFFILIATION IS FOR THREE YEARS THE AFFILIATION WITH THE WB NETWORK IS ALSO EXPECTED TO HELP WGN BECAUSE MORE CABLE SYSTEMS ARE LIKELY TO START CARRYING IT AND WARNER BROS WILL DO NATIONAL PROMOTION SAID MR FITZSIMONS CURRENTLY TRIBUNE RUNS PROMOTIONS FOR THE STATION ONLY IN THE CHICAGO AREA 9312060136 931206 SPAIN'S GONZALEZ CLINTON WILL FOCUS ON ECONOMIC ISSUES DIVIDING EC US BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID WHEN SPANISH PRIME MINISTER FELIPE GONZALEZ MEETS PRESIDENT BILL CLINTON FOR THE FIRST TIME TODAY THE TWO LEADERS ARE LIKELY TO FIND THEY HAVE A LOT IN COMMON BOTH MEN FACE THE DAUNTING TASK OF REORGANIZING INEFFICIENT HEALTH CARE EDUCATIONAL AND INFRASTRUCTURE SYSTEMS AS PART OF AN EFFORT TO ENHANCE THE COMPETITIVENESS OF THEIR RESPECTIVE ECONOMIES BOTH LEADERS TOO ARE INVOLVED IN THE COMPLICATED PROCESS OF BUILDING A SINGLE MARKET WITH NEIGHBORING COUNTRIES BUT THEIR ATTENTION IS LIKELY TO FOCUS ON ISSUES THAT DIVIDE THE UNITED STATES AND EUROPE AND ARE OF VITAL ECONOMIC IMPORTANCE TO BOTH REGIONS INDEED AS THE TWO LEADERS MEET REPRESENTATIVES FROM THE U S AND THE EUROPEAN COMMUNITY WILL BE CONVENING IN BRUSSELS IN AN ATTEMPT TO HAMMER OUT A FINAL ACCORD THAT WILL CLEAR THE WAY FOR THE CONCLUSION OF THE URUGUAY ROUND OF WORLDTRADE TALKS KNOWN AS THE GENERAL AGREEMENT ON TARIFFS AND TRADE IF AN ECUS PACT IS SEALED TODAY A FINAL ACCORD AMONG GATT'S 105 MEMBER COUNTRIES MAY BE POSSIBLE BUT I CAN'T SAY IT'S PROBABLE BY A DEC 15 DEADLINE THE PRIME MINISTER EXPLAINED IN AN INTERVIEW AT THE MONCLOA PALACE HIS OFFICIAL RESIDENCE ON THE OUTSKIRTS OF MADRID EUROPE SHOULDN'T HAVE A COMPLEX ABOUT THESE NEGOTIATIONS BECAUSE EUROPE IS THE MOST OPEN FREETRADE ZONE IN THE WORLD THE REGION WHERE THE FLOW OF EXPORTS AND IMPORTS IS THE MOST FLUID MR GONZALEZ WHO AFTER 11 YEARS IN OFFICE IS EUROPE'S LONGESTSERVING SOCIALIST LEADER SAYS THE US SHOULD MAKE AN EFFORT TO UNDERSTAND EUROPE'S REQUEST TO PROTECT ITS ENTERTAINMENT INDUSTRY FROM US EXPORTS THIS CULTURAL EXCEPTION REPRESENTS ONE OF THE LAST HURDLES ON THE ROAD TO AN ECUS ACCORD SIMILARLY MR GONZALEZ 51 YEARS OLD ADVOCATES THE CREATION OF AN MULTINATIONAL ORGANIZATION WHICH THE US OPPPOSES TO OVERSEE INTERNATIONAL TRADE AND ACT AS AN ARBITRATOR IN TIMES OF CONFLICT ALTHOUGH A GATT ACCORD IS DESIRABLE BECAUSE IT WOULD STIMULATE INTERNATIONAL TRADE AND RAISE EXPECTATIONS MR GONZALEZ DOESN'T THINK A BREAKDOWN WOULD BE DEVASTATING TO THE WORLD ECONOMY BECAUSE THE CURRENT RULES WOULD REMAIN IN PLACE NEVERTHELESS AN AGREEMENT ON GATT COMING IN THE WAKE OF US APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT WITH MEXICO AND CANADA WOULD HELP SPUR WORLD ECONOMIC GROWTH AND GIVE ADDED IMPETUS TO EUROPEAN EFFORTS TO CREATE A SINGLE MARKET ECONOMIC RECOVERY WILL THEN BREATHE NEW LIFE INTO THE MAASTRICHT TREATY MR GONZALEZ SAID ALTHOUGH A GROWING NUMBER OF EUROPEANS FAVOR RELAXING THE FOUR REQUISITES FOR EUROPEAN CONVERGENCE AS A WAY TO HELP MEMBER COUNTRIES MEET THE DEADLINES FOR THE LAUNCH OF A SINGLE CURRENCY MR GONZALEZ BELIEVES EUROPE MAY BE RIGHT ON TARGET FOR UNIFICATION WHAT IS FAILING FROM THE POINT OF VIEW OF CONVERGENCE IS THE PUBLIC DEFICIT WHICH CONTRIBUTES TO GROWING DEBT BURDENS HE AFFIRMS IF THE ECONOMIC CYCLE BEGINS TO CHANGE IN 1994 AND THIS MEANS THAT THERE IS REASONABLE GROWTH IN 1995 AND 1996 THE TRUTH IS THAT THE DEFICITS WILL BEGIN TO DIMINISH ONCE THE UNIFICATION PROCESS BEGINS TO GATHER MOMENTUM THE EC WILL BE IN A POSITION TO ACCEPT NEW MEMBERS AND CAN EVEN CONSIDER EVENTUALLY CREATING A FREETRADE ZONE WITH THE AMERICAS IN A PARALLEL PROCESS THE NORTH ATLANTIC TREATY ORGANIZATION WILL HAVE TO REDEFINE ITS STRATEGY FOR A POSTCOLD WAR ERA ALTHOUGH IT IS VERY DIFFICULT TO KNOW WHAT ITS FUTURE WILL BE MR GONZALEZ SAYS THERE'S ONE THING EVERYONE AGREES ON THE ATLANTIC ALLIANCE WILL NOT ONLY REMAIN AS THE MOST IMPORTANT POLITICAL BOND BETWEEN EUROPE AND THE UNITED STATES BUT THAT IT'S ALSO A SECURITY LINK THAT NO ONE WANTS TO GET RID OF FOR SPAIN ACCESS TO NEW WORLD MARKETS IS VITAL IN JUST OVER A YEAR THE PESETA HAS BEEN DEVALUED THREE TIMES AND INTEREST RATES HAVE BEEN SLASHED IN AN EFFORT TO BOOST EXPORTS AND JUMPSTART THE SPUTTERING ECONOMY WHICH IS EXPECTED TO CONTRACT ALMOST 1 PERCENT THIS YEAR UNEMPLOYMENT NOW STANDS AT 229 THE HIGHEST RATE IN THE EUROPEAN UNION EQUALLY AS IMPORTANT TO SPAIN IS ATTRACTING NEW INVESTMENT FROM THE US AND OTHER FOREIGN COUNTRIES TO THAT END THE GOVERNMENT HAS TURNED TEXTBOOK SOCIALIST POLICY ON ITS HEAD BY INTRODUCING A RESTRICTIVE BUDGET AND IMPLEMENTING A SERIES OF STRUCTURAL REFORMS AIMED AT REDUCING SPAIN'S PRODUCTION COSTS AND TEARING DOWN THE BARRIERS TO JOB CREATION A FACT THAT HE WANTS TO MAKE CLEAR TO U S INVESTORS SPAIN IF IT CORRECTS SOME PROBLEMS SUCH AS THE RIGIDITY OF THE LABOR MARKET AND STABILIZES ITS MACROECONOMY STILL HAS SOME IMPORTANT COMPARATIVE ADVANTAGES FROM THE POINT OF VIEW OF COST AND GROWTH CAPACITY HE OBSERVES IN A YEAR OR TWO I BELIEVE SPAIN WILL ONCE AGAIN HAVE BECOME ATTRACTIVE TO FOREIGN INVESTORS 9312060135 931206 BUSINESS BRIEF MONSANTO CO SPECIAL CHARGE OF 7 MILLION TO BE TAKEN THIS QUARTER MONSANTO CO ST LOUIS SAID IT WILL TAKE AN AFTERTAX CHARGE OF 7 MILLION OR SIX CENTS A SHARE IN THE FOURTH QUARTER FOR THE ESTABLISHMENT OF A RESERVE TO COVER AMONG OTHER THINGS THE SALE OF CERTAIN NONSTRATEGIC PRODUCTS THE CHEMICAL CONCERN SAID THE RESERVE AND RELATED ACTIONS ALSO INCLUDES THE WITHDRAWAL FROM THE PYRIDINE RESEARCH PROGRAM IN ITS AGRICULTURAL GROUP AND THE CONSOLIDATION OF SOME MANUFACTURING CAPACITY MONSANTO SAID SEVERAL OF THE ACTIONS COVERED IN THIS RESERVE HAVE ALREADY BEEN ANNOUNCED SUCH AS THE PLANNED SALE OF ITS LINEAR ALKYL BENZENE SURFACTANT PRODUCT TO HUNTSMAN FINANCIAL CORP AND MONSANTO'S SHARES IN MONSANTO KASEI CO OF JAPAN IN THE FOURTH QUARTER OF 1992 MONSANTO EARNED 141 MILLION OR 114 A SHARE 9312060134 931206 SOUTHWEST AIR'S TRAFFIC CLIMBS DALLAS SOUTHWEST AIRLINES CO SAID ITS NOVEMBER TRAFFIC ROSE 185 FROM A YEAR EARLIER TO 140 BILLION REVENUE PASSENGER MILES A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE SOUTHWEST'S NOVEMBER LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 659 FROM 645 A YEAR EARLIER THE AIRLINE SAID TRAFFIC IN THE FIRST 11 MONTHS ROSE 213 TO 1535 BILLION REVENUE PASSENGER MILES LOAD FACTOR ROSE TO 679 FROM 648 9312060133 931206 INTERNATIONAL RUSSIA'S BUSINESSMEN LEARN HOW TO USE POLITICAL FINANCING TO WIELD INFLUENCE BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW ALONG WITH FANCY CARS AND EXPENSE ACCOUNTS RUSSIA'S NEW BUSINESSMEN ARE DISCOVERING ANOTHER TIMEHONORED TRAPPING OF CAPITALISM POLITICAL CLOUT THROUGH CAMPAIGN FINANCING AS THE UNPRECEDENTED CAMPAIGN FOR A NEW LEGISLATURE KICKS INTO HIGH GEAR SUCH EXPENSIVE TACTICS AS TELEVISION AND RADIO ADVERTISING AS WELL AS THE USUAL ROUND OF CROSSCOUNTRY STUMPING TOURS MAKE MONEY MORE IMPORTANT THAN EVER SOME POLITICAL WATCHERS ESTIMATE A CANDIDATE WILL NEED AT LEAST 10 MILLION RUBLES ABOUT 8100 TO MOUNT A STRONG CAMPAIGN SINCE THE CENTRAL BUDGET PROVIDES ONLY 50 MILLION RUBLES PER POLITICAL PARTY AND DOZENS OF CANDIDATES ARE RUNNING IN ANY GIVEN PARTY THE PARTIES ARE TURNING TO SUPPORTERS FOR FINANCING COMMERCIAL BANKS AND LARGE TRADING COMPANIES ARE SOME OF THE BIGGEST DONORS BUT SMALLERSCALE ENTREPRENEURS ALSO ARE GETTING INTO THE ACT THE WHOLE SUBJECT IS A BIT TABOO NOBODY LIKES TO TALK ABOUT HOW AND FROM WHERE THE MONEY COMES NOR HOW MUCH AND TO WHOM THE MONEY GOES RUSSIA'S YOUNG DEMOCRACY HASN'T YET ESTABLISHED FULLDISCLOSURE LAWS SO MONEY IS BEING GIVEN OVER UNDER AND AROUND THE TABLE EVEN THE CENTRAL ELECTION COMMISSION DOESN'T EXPECT TO BE ABLE TO STOP THE INEVITABLE ABUSES THERE'S ALWAYS ROOM FOR ABUSE WHERE THERE'S MONEY SAYS VALERY BAGIN HEAD OF FINANCING ISSUES FOR THE COMMISSION THE MOST IMPORTANT THING FOR US IS THAT THE ELECTIONS GET HELD BUT IT WOULD BE NAIVE TO THINK WE'LL BE ABLE TO CURB ALL THE VIOLATIONS THAT ARISE AS QUICKLY AS THE POLITICAL BLOCS ARE FIGURING OUT HOW TO RAISE FUNDS THE DONORS ARE LEARNING HOW TO USE FINANCING TO WIELD INFLUENCE IN NOVEMBER DEPUTY PRIME MINISTER YEGOR GAIDAR MET WITH HEADS OF SOME OF RUSSIA'S LARGEST COMMERCIAL BANKS TO TALK ABOUT THEIR PROBLEMS PARTICULARLY THEIR DEMANDS FOR LIMITS ON FOREIGN BANKS' ACCESS TO THE RUSSIAN MARKET A RADICAL REFORMER MR GAIDAR HAD LONG STAKED HIS REPUTATION ON LAISSEZFAIRE ECONOMICS AND AN OPEN MARKET BUT NOW HE ALSO HEADS THE FRONTRUNNER POLITICAL BLOC RUSSIA'S CHOICE MR GAIDAR CAME OUT OF THE MEETING SAYING THAT THE PRESENCE OF TOO MANY FOREIGN BANKS TOO EARLY WOULD CAUSE PROBLEMS WITHIN DAYS PRESIDENT BORIS YELTSIN BACKED THIS UP WITH A DECREE LIMITING FOREIGN BANKS' ACTIVITY UNTIL 1996 A RULING THAT CONTRADICTS HIS DECISION LAST SUMMER TO ALLOW THE BANKS GREATER ACCESS MR GAIDAR DENIED THE DEC 12 ELECTIONS HAD ANYTHING TO DO WITH THE DECISION BUT SOME BANKERS ARE PATTING THEMSELVES ON THE BACK FOR A CARD WELLPLAYED PROBABLY GAIDAR'S COMMENTS ARE THE RESULT OF THE FACT THAT AN ELECTION IS UNDER WAY SAYS A SMILING SERGEI ZVEREV DEPUTY GENERAL DIRECTOR OF MOST GROUP A BROADBASED COMPANY THAT INCLUDES MOST BANK A MAJOR PLAYER IN THE HARDCURRENCY BANKING MARKET THE HUGE PRIVATE INSURANCE COMPANY ASKA APPROACHED RUSSIA'S CHOICE TO OFFER SUPPORT WITH A SIMILAR GOAL IN MIND WITH 800 REGIONAL DIVISIONS AND SOME 100000 EMPLOYEES THE COMPANY HAS A VITAL INTEREST IN THE DEVELOPING INSURANCE LEGISLATION THE FIRST THING THEY ASKED WAS TO BE INVOLVED IN THE PROCESS AND TO BE ABLE TO DISCUSS THEIR PROBLEMS SAYS ARKADY MURASHEV A CHIEF CAMPAIGN ORGANIZER FOR RUSSIA'S CHOICE TOPPING THE LIST OF DONORS TO PEOPLE'S CHOICE A COALITION OF FOUR PARTIES ARE SUCH COMMERCIAL BUSINESSES AS MOST GROUP MENATEP BANK AND THE AVTOVAZ CAR FACTORY AS WELL AS THE RATHER UNLIKELY LENIN COLLECTIVE FARM MOST GROUP IS TARGETING MORE THAN ONE POLITICAL GROUP LIKE MANY BUSINESSES IT WANTS TO SUPPORT THE FULL SPREAD OF LIBERALMINDED CANDIDATES AND PARTIES TO HELP ASSURE THAT REFORMS PROCEED IT ALSO WANTS TO COVER ALL OF ITS BASES PERSONAL TIES ARE BEHIND MANY FUNDING DECISIONS MOST GROUP FOR EXAMPLE CLAIMS TO BE DONATING MOST HEAVILY TO A POLITICAL BLOC FORMED BY ECONOMIST GRIGORY YAVLINSKY MR YAVLINSKY ALSO A REFORMER BUT A LONGTIME RIVAL OF MR GAIDAR PROMOTES A MORE MOSCOWDOMINATED NATIONAL STRUCTURE AND SLOWER APPROACH TO ECONOMIC REFORMS THAN MR GAIDAR BUT PERHAPS MORE IMPORTANT MOST GROUP'S CHIEF GOT HIS START WORKING AS AN ECONOMIST IN MR YAVLINSKY'S THINK TANK UNLIKE THE BANKING OR INSURANCE LOBBIES BUSINESSMEN SUCH AS NIKOLAI ALYOKHIN AREN'T PURSUING ANY SPECIFIC AGENDA WITH THEIR DONATIONS RATHER THEY WANT TO PAVE THE WAY TO THE CORRIDORS OF POWER FOR ME WHAT'S IMPORTANT ISN'T A PROMISE THAT I CAN BUILD A ROAD OR FINISH BUILDING MY FACTORY BUT THAT THE PEOPLE I BELIEVE IN GET TO POWER SAYS MR ALYOKHIN 47 YEARS OLD WHO RUNS A CHAIN OF RETAIL SHOPS BASED IN THE PROVINCIAL CITY OF VORONEZH THEN I CAN GO TO THEM AND SAY I WANT TO BUILD ROADS OR FACTORIES OR BUY HELICOPTERS AND HAVE A MORE GLOBAL PLAN THEN THEY CAN HELP THROUGH THE LAWS AND NATURALLY BY USING THEIR GOOD CONTACTS AN EARLY FOUNDER OF A BRANCH OF THE NOWCENTRIST DEMOCRATIC PARTY OF RUSSIA MR ALYOKHIN SAYS HE MUST STILL SUPPORT THAT PARTY BUT HIS POLITICAL SYMPATHIES LIE WITH THE MORE REFORMMINDED RUSSIA'S CHOICE SO AS A THRIVING BUSINESSMAN HE'S FINANCING BOTH DONATING MORE THAN A MILLION RUBLES TO EACH BOTH DONORS AND RECIPIENTS USUALLY ARE RETICENT WHEN IT COMES TO TALKING ABOUT HOW MONEY GETS RAISED RECIPIENTS GENERALLY SAY THEIR DONORS VOLUNTEER SUPPORT WHILE BUSINESSMEN SAY THEY ARE APPROACHED BY PARTIES SEEKING FUNDS GENERALLY A COMBINATION IS AT WORK THE RULES ON CAMPAIGN DONATIONS LIMIT THE AMOUNT AN INDIVIDUAL OR COMPANY CAN GIVE TO A SINGLE CANDIDATE OR POLITICAL BLOC THE CEILING ON CORPORATE DONATIONS IS 150 MILLION RUBLES TO POLITICAL BLOCS AND 15 MILLION RUBLES TO INDIVIDUAL CANDIDATES RUSSIA HASN'T HAD THE TIME TO EVOLVE SUCH NICETIES AS POLITICAL ACTION COMMITTEES TO ENABLE DONORS TO KEEP GIVING TO WHOMEVER THEY WANT SO INSTEAD COMPANY DIRECTORS FUNNEL THE MONEY THROUGH VARIOUS DAUGHTER COMPANIES AND AFFILIATES I'M THE HEAD OF THREE COMPANIES SAYS MR ALYOKHIN I CAN GIVE A CERTAIN AMOUNT FROM EACH ONE SO THAT IT'S STILL WITHIN THE LAW TO BE SURE NOT EVERY CAMPAIGN IS SEARCHING FOR FUNDS THE AGRARIAN PARTY A POWERFUL CONSERVATIVE BLOC THAT HAS ABSORBED SOME OF THE OVERFLOW OF CANDIDATES FROM THE COMMUNIST PARTY CAN DRAW ON THE COMMUNICATIONS LINKS OF A VAST NETWORK OF STATE AND COOPERATIVE FARMS OF COURSE MONEY IS IMPORTANT BUT OTHER FACTORS ARE EVEN MORE IMPORTANT SAYS AGRICULTURAL UNION EXECUTIVE SECRETARY ALEXANDER MIKHAILOV WE DON'T WANT TO SEEK MONEY IT'S DEGRADING 9312060132 931206 MOVIES FILM INDUSTRY IN EUROPE SEEKS WIDER AUDIENCE BY CHARLES GOLDSMITH AND CHARLES FLEMING STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS IT'S 8 PM FRIDAY AT THE 25SCREEN KINEPOLIS THE WORLD'S BIGGEST THEATER COMPLEX AND THE ELECTRONIC TICKET COUNTERS IN THE LOBBY TELL THE SAD STORY OF EUROPE'S FILMMAKERS THE HOLLYWOOD BLOCKBUSTERS IN THE LINE OF FIRE THE FIRM AND JURASSIC PARK SELL OUT THE LAST FILLING SOME 2000 SEATS IN THREE ENGLISH AND ONE FRENCHDUBBED THEATER BUT IN TWO ROOMS SEATING ABOUT 200 EACH THE MUCHTOUTED FRENCH DRAMA GERMINAL BASED ON EMILE ZOLA'S BLEAK 19THCENTURY NOVEL ABOUT A COAL MINERS' STRIKE HAS 61 TICKETS AVAILABLE AND THE FRENCH PSYCHOLOGICAL THRILLER L'OMBRE DU DOUTE HAS SOLD JUST 15 WE HAVE NO PROBLEM WITH SHOWING EUROPEAN FILMS BUT GIVE US FILMS PEOPLE WANT TO SEE SAYS JOOST BERT WHOSE FAMILY IS PART OWNER OF KINEPOLIS MR BERT ISN'T ALONE IN BELIEVING THAT MOST EUROPEAN MOVIES ARE FAILING THEIR AUDIENCE WITH FILMS AN ELEMENT IN HEATED USEUROPE TRADE NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE MANY IN THE INDUSTRY ARE ASKING HOW CAN EUROPEAN FILMMAKERS BEST KNOWN FOR HIGHBROW ART FILMS ATTRACT MOVIEGOERS IN EUROPE AND FARTHER AFIELD MEANWHILE JACK LANG FRANCE'S FORMER CULTURE MINISTER STATES FLATLY IF CULTURE IS INCLUDED IN GATT IT WILL MEAN THE MENTAL COLONIZATION OF EUROPE BUT OTHER EUROPEANS BELIEVE USSTYLE MASSMARKETING TECHNIQUES COUPLED WITH MORE UNIVERSAL STORY LINES ARE PRECISELY WHAT EUROPE'S FILM WORLD NEEDS THE GATT DEBATE HAS GIVEN CAUSE FOR THOUGHT SAYS DANIEL TOSCAN DU PLANTIER CHAIRMAN OF THE FRENCH FILM EXPORT ASSOCIATION UNIFRANCE PROTECTION IS ALL VERY WELL ON CONDITION THAT YOU ALSO GO ONTO THE OFFENSIVE TAKING A LESSON FROM THE SUCCESS OF AMERICAN MOVIES THAT ARE DUBBED INTO LOCAL LANGUAGES WORLDWIDE UNIFRANCE HAS SELECTED 15 MAINLY DOWNMARKET FRENCH COMEDIES TO BE DUBBED AND SHOWN NEXT YEAR IN THE MASSMARKET AMERICAN MULTI CINEMA CIRCUIT OF 1700 THEATERS IN THE SOUTHERN US BRITISH FILMMAKER DAVID PUTTNAM WHOSE MOVIES INCLUDE THE OSCARWINNING CHARIOTS OF FIRE RECENTLY TOLD YOUNG FILMMAKERS IN LONDON TO TAKE A NEW APPROACH WE HAVE TO START FROM AN ACKNOWLEDGMENT OF THE FACT THAT WE HAVE FAILED THAT THE FILMS AREN'T VERY GOOD AT THE MOMENT THAT WHAT WE ARE LOSING IS OUR OWN AUDIENCE THE AUDIENCE HAS VOTED WITH ITS FEET WITH AN EXPRESSED PREFERENCE FOR AMERICAN FILMS THE US SHARE OF THE EUROPEAN CINEMA MARKET IS ABOUT 75 COMPARED WITH 60 IN 1984 AMERICAN MOVIES' SHARE OF THE FRENCH MARKET HAS BEEN DOUBLING SINCE 1979 TO MORE THAN 60 LAST YEAR US AUDIOVISUAL EXPORTS TO THE EUROPEAN COMMUNITY TOTALED 37 BILLION COMPARED WITH EC EXPORTS TO THE US OF 288 MILLION SUCH IMBALANCES HAVE LED TO TENSE NEGOTIATIONS OVER AUDIOVISUAL PRODUCTS IN THE GATT TALKS THE EC IS FIGHTING HARD TO ALLOW NATIONAL GOVERNMENTS TO CONTINUE SUBSIDIZING FILMS EITHER THROUGH A CULTURAL SPECIFICITY CLAUSE OR A GATT EXEMPTION FOR CULTURAL PRODUCTS FRANCE HAS THREATENED TO VETO ANY GATT AGREEMENT THAT LACKS SOME SUCH PROTECTION WITHOUT SUBSIDIES THE EC SAYS THERE IS NO WAY TO COMPETE AGAINST US FILMS AND THEIR NATURAL ADVANTAGE OF A HUGE DOMESTIC AUDIENCE THE EC ALSO WANTS TO RETAIN QUOTAS ON TV PROGRAMS PRODUCED OUTSIDE EUROPE TO KEEP OUT A BARRAGE OF US SITCOMS AND POLICE SHOWS WITH THE VEXING MATTER OF AGRICULTURE UNRESOLVED IN THE GATT TALKS FILMS HAVE BECOME A STRATEGIC ISSUE FOR NEGOTIATORS FRANCE IS DEMANDING CHANGES TO THE 1992 USEC BLAIR HOUSE ACCORD ON FARMSUBSIDY CUTS SO MANY TRADE EXPERTS EXPECT THE US TO MAKE LASTMINUTE CONCESSIONS ON FILMS TO ENTICE PARIS TO SUPPORT AN OVERALL PACKAGE WITH FARMSUPPORT REDUCTIONS EC OFFICIALS STRONGLY DEFEND THE NEED FOR CONTINUED SUBSIDIES TO KEEP THE EUROPEAN INDUSTRY ALIVE BUT THEY HAVE ALSO TRIED TO IMPRESS FILMMAKERS WITH THE NEED FOR MARKETMINDED RESTRUCTURING SOME IN THE INDUSTRY AGREE THERE ARE SOME REALLY GOOD EUROPEAN FILMS BUT THEY ARE OFTEN TOO SPECIFIC SO THEY ONLY REACH ONE COUNTRY OR ONE SORT OF PEOPLE SAYS VERONIQUE BAGNES SECRETARYGENERAL OF THE PARISBASED INTERNATIONAL UNION OF CINEMAS AN EXAMPLE SHE SAYS IS LAST YEAR'S FRENCH COMEDY LA CRISE WHICH POKED FUN AT THE HYPOCRISY OF SOME SOCIALIST OFFICIALS THEN IN POWER IN FRANCE THE MOVIE WAS A MUSTSEE FOR MANY IN FRANCE BUT IT HAD LIMITED SUCCESS ELSEWHERE AND IS DATED BY THE SOCIALISTS' FALL FROM POWER OTHERS SCOFF AT CRITICISM THAT ALL EUROPEAN FILMS HAVE NARROW STORY LINES NOTING THAT THE US HITS THREE MEN AND A BABY AND SCENT OF A WOMAN WERE MODELED AFTER LESSERKNOWN FRENCH AND ITALIAN WORKS RESPECTIVELY THE REAL PROBLEM THEY SAY IS A LACK OF CONFIDENCE AND COMMITMENT TO PROMOTE SUCH WORKS TO A WIDER AUDIENCE THE EC HAS A RELATIVELY NEW PROGRAM TO AID FILM DISTRIBUTION BUT EUROCINEMA THE LOBBYING GROUP FOR EC FILM PRODUCERS COMPLAINS THAT THE BUDGET OF 45 MILLION OVER FIVE YEARS IS INSUFFICIENT THE BRITISH FILM THE CRYING GAME RELEASED LAST YEAR MANAGED TO ESCAPE THE SMALLCIRCLE SYNDROME IT GROSSED 625 MILLION IN NORTH AMERICA AFTER ITS US DISTRIBUTOR MIRAMAX HEAVILY PROMOTED THE FILM AND ITS SECRET ABOUT A CHARACTER'S SEXUAL IDENTITY AN EC COMMISSION OFFICIAL SAYS THAT SUBSIDIES SHOULD BE ALLOWED FOR ART FILMS WITH A CHANCE OF ATTRACTING A REASONABLE AUDIENCE BUT THAT EUROPE'S INTELLECTUAL ELITE MUST GET OVER ITS AVERSION TO FILMS BEING CONSIDERED PART OF AN ENTERTAINMENT INDUSTRY THE SUBSIDY SYSTEM OF THE LAST 20 YEARS HAS MANAGED TO PRODUCE SOME MASTERPIECES BY PEOPLE LIKE GODARD AND FELLINI THE OFFICIAL SAYS BUT WE ALSO NEED OTHER FILMS THAT MY MOTHER WILL GO SEE SHE'S NO INTELLECTUAL AND SHE WON'T GO SEE GODARD EVERY OTHER SATURDAY 9312060131 931206 BUSINESS BRIEF BRIDGE OIL LTD US UNIT FILES WITH SEC FOR INITIAL PUBLIC OFFERING BRIDGE OIL USA INC DALLAS SAID IT HAS FILED WITH THE SECURITIES AND EXCHANGE COMMMISSION FOR A PROPOSED INITIAL PUBLIC OFFERING OF FOUR MILLION SHARES OF COMMON STOCK THE OIL AND NATURALGAS COMPANY IS A UNIT OF BRIDGE OIL LTD AN AUSTRALIAN COMPANY NET PROCEEDS WILL BE USED IN PART FOR THE PURCHASE OF CERTAIN ASSETS FOR A DIVIDEND PAYMENT TO THE PARENT COMPANY AND FOR GENERAL CORPORATE PURPOSES MORGAN STANLEY & CO WILL BE LEAD UNDERWRITER FOR THE OFFERING SEPARATELY SANTA FE ENERGY RESOURCES INC SAID BRIDGE USA AGREED TO BUY MOST OF SANTA FE'S ASSETS IN THE ANADARKO BASIN OF OKLAHOMA AND TEXAS AND ITS ROCKY MOUNTAIN STATES' INTERESTS EXCEPT FOR THE CANYON CREEK NATURALGAS FIELD IN WYOMING IN A TRANSACTION VALUED AT MORE THAN 51 MILLION IN CASH AND STOCK SUBJECT TO ADJUSTMENT SANTA FE SAID THE TRANSACTION IS EXPECTED TO CLOSE IN THE FIRST QUARTER OF 1994 9312060130 931206 TREASURY PLANS SALE OF 16 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO RAISE 123 BILLION IN NEW CASH WITH THE SALE THURSDAY OF 16 BILLION OF 52WEEK BILLS TO REDEEM 1478 BILLION IN MATURING BILLS THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS WILL BE DATED DEC 16 AND WILL MATURE DEC 15 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM THE CUSIP NUMBER FOR THE BILLS IS 912794M27 9312060129 931206 DIVIDEND NEWS TRANSCANADA PIPELINES LTD TRANSCANADA PIPELINES LTD CALGARY ALBERTA BOOSTED ITS ANNUAL DIVIDEND RATE NEARLY 10 TO 92 CANADIAN CENTS 69 US CENTS A SHARE FROM 84 CANADIAN CENTS A SHARE THE CONCERN'S NEXT QUARTERLY PAYMENT OF 23 CENTS A SHARE WILL BE MADE JAN 31 TO STOCK OF RECORD DEC 31 THE GASPIPELINE COMPANY'S EARNINGS HAVE BEEN IMPROVING STEADILY IN THE NINE MONTHS ENDED SEPT 30 IT EARNED C2668 MILLION UP FROM C2444 MILLION IN THE YEAREARLIER PERIOD 9312060128 931206 BUSINESS BRIEF TUCSON ELECTRIC POWER CO STATE AIDE BACKS RATE RISE BUT LESS THAN FIRM ASKED TUCSON ELECTRIC POWER CO SAID AN ARIZONA CORPORATION COMMISSION HEARING OFFICER RECOMMENDED A RATE INCREASE THAT WAS LESS THAN HALF OF WHAT THE UTILITY HAD REQUESTED THE HEARING OFFICER RECOMMENDED THAT THE COMMISSION APPROVE A 4 OR 226 MILLION RATE INCREASE IN JANUARY TUCSON ELECTRIC HAD ASKED FOR A 96 RATE INCREASE THAT WOULD HAVE RAISED AN ADDITIONAL 49 MILLION IN REVENUE ANNUALLY AT THE TIME THE TUCSON ARIZ COMPANY SAID IT NEEDED THE INCREASE TO RECOVER INCURRED COSTS AND TO MOVE THE COMPANY TOWARD FINANCIAL HEALTH FOLLOWING THE HEARING OFFICER'S RECOMMENDATION TUCSON ELECTRIC SAID IT BELIEVES IT PRESENTED VERY STRONG FACTUAL DOCUMENTATION TO SUPPORT OUR FULL REQUEST THE UTILITY SAID IT HADN'T HAD TIME TO REVIEW THE RECOMMENDED ORDER A DATE HASN'T BEEN SET FOR A HEARING IN WHICH THE COMMISSION WILL ISSUE ITS FINAL ORDER 9312060127 931206 RENAISSANCE PLANS 80 MILLION OFFERING OF STOCK GIVING WARBURG 585 MILLION BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TELEVISION STATION OPERATOR RENAISSANCE COMMUNICATIONS CORP PLANS AN 80 MILLION INITIAL PUBLIC OFFERING THAT WILL YIELD ITS MAJORITY OWNER WARBURG PINCUS CAPITAL CO LIMITED PARTNERSHIP 585 MILLION SINCE 1988 THE GREENWICH CONN BROADCASTING COMPANY HAS ACQUIRED SIX UNDERPERFORMING TV STATIONS AND TEAMED UP WITH FOX BROADCASTING CO TO AIM FOR A YOUNG ADULT TARGET AUDIENCE THE COMPANY FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 47 MILLION SHARES ESTIMATED TO BE PRICED AT 16 TO 18 A SHARE OF THE TOTAL 3760000 SHARES WILL BE OFFERED IN THE US AND 940000 OVERSEAS THROUGH GOLDMAN SACHS & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP ALTHOUGH NONE OF THE SHARES IS BEING SOLD BY INSIDERS RENAISSANCE WILL USE 585 MILLION OF THE PROCEEDS TO REDEEM ALL SERIES B PREFERRED SHARES FROM WARBURG AND WILL USE 153 MILLION TO REDUCE SENIOR DEBT TO 1536 MILLION THE OFFERING WILL REDUCE WARBURG'S COMMON STOCK HOLDINGS TO ABOUT 69 OF THE COMPANY FROM ALMOST 96 AT PRESENT EXISTING SHAREHOLDERS PAID AN AVERAGE 467 A SHARE FOR THEIR STAKE AFTER THE OFFERING THE COMPANY WILL HAVE 173 MILLION SHARES OUTSTANDING VALUING THE COMPANY AT 294 MILLION AT AN ASSUMED 17 OFFERING PRICE WARBURG IS MANAGED BY THE INVESTMENT BANK EM WARBURG PINCUS & CO THE COMPANY EXPECTS TO TRADE IN THE NASDAQ NATIONAL MARKET UNDER THE SYMBOL RRRR FIVE OF THE SIX RENAISSANCE STATIONS ARE AFFILIATES OF FOX BROADCASTING AND THE BROADCASTER SAYS ITS TARGET AUDIENCE IS ADULTS 18 TO 49 AND CHILDREN TWO TO 11 YEARS OLD THE FILING SAID THAT AMONG ITS OLDER THREE STATIONS THE YOUNGADULT AUDIENCE HAS INCREASED MORE THAN 40 DURING THE BROADCAST DAY AND MORE THAN 25 DURING PRIME TIME THE CHILDREN'S AUDIENCE WHICH WATCHES TV IN EARLY MORNING AND LATE AFTERNOON GREW MORE THAN 45 SINCE THE STATIONS WERE ACQUIRED THE COMPANY SAID RENAISSANCE BOUGHT THE FIRST THREE OF ITS SIX STATIONS IN 1989 AND 1990 IN THE MIAMI/FORT LAUDERDALE FLA AREA SACRAMENTO CALIF AND HARRISBURG PA THIS YEAR THE COMPANY BOUGHT THREE MORE STATIONS FROM CHASE COMMUNICATIONS INC LOCATED IN DENVER THE HARTFORD/NEW HAVEN CONN AREA AND INDIANAPOLIS THE FILING SAID THE COMPANY MIGHT SELL ONE OR MORE OF ITS STATIONS IN ORDER TO BUY STATIONS IN LARGER MARKETS BUT DOESN'T HAVE ANY TRANSACTIONS PLANNED RENAISSANCE SAID REVENUE HAS CLIMBED STEADILY OVER THE PAST FEW YEARS TO ABOUT 1164 MILLION IN 1992 ON A PRO FORMA BASIS UP FROM THE YEAREARLIER 889 MILLION THE COMPANY REPORTED A NET LOSS OF ABOUT 94 MILLION OR 503 A SHARE ON A PRO FORMA BASIS FOR 1992 COMPARED WITH NET INCOME OF 135 MILLION IN 1991 FOR THE FIRST NINE MONTHS OF 1993 THE SIX STATIONS REPORTED A 10 INCREASE IN TOTAL REVENUE AND 28 RISE IN BROADCAST CASHFLOW ON A PRO FORMA BASIS 9312060126 931206 PEPPERAND SALT ARE NOT ALWAYS RECIPROCATED USUALLY THOUGH IT COMES TOO LATE PAYCHECK MOUTH TO MOUTH RESUSCITATION 9312060124 931206 LETTERS TO THE EDITOR HE PUTS A FRIGHT WIG ON GOP HEALTH PLAN IT'S UNFORTUNATE THAT SEN JAY ROCKEFELLER RESORTS TO AD HOMINEM ATTACKS TO FURTHER THE CLINTON ADMINISTRATION'S PAINFULLY COMPLICATED HEALTH CARE PLAN IN HIS NOV 19 LETTER COUNTERING MY OCT 13 EDITORIAL PAGE ARTICLE YOUR FUTURE HEALTH PLAN HE'S CORRECT WHEN HE SAYS FUN DIAGRAMS DO LITTLE TO CLARIFY OUR CHOICE AND PROVES IT WITH A CARTOONISH ABSURDLY INACCURATE PORTRAYAL OF THE MICHEL/LOTT AFFORDABLE HEALTH CARE NOW ACT THERE IS NOTHING FUNNY NOR INACCURATE HOWEVER ABOUT THE DIAGRAM THAT RAN WITH MY OCT 13 ARTICLE I HAVE WRITTEN HEALTH CARE GURU IRA MAGAZINER TWICE NOW ASKING HIM TO TELL ME WHAT ELEMENT OF MY CHART IS INCORRECT AND HE HAS NOT DISPUTED IT SEN ROCKEFELLER'S SCHEMATIC INFERS THAT THE GOP ALTERNATIVE CUTS MEDICARE AND MEDICAID BUT THE CLINTON PLAN CUTS THESE ENTITLEMENTS BY A DRACONIAN 192 BILLION VS OUR MEAGER 10 BILLION REFORM IN MEDICAID HE SUGGESTS INSURERS CAN DENY BENEFITS FOR PREEXISTING CONDITIONS WHEN THE MICHEL/LOTT BILL SPECIFICALLY BARS SUCH PRACTICES HE TRIES TO SCARE OLDER WOMEN AND LOWINCOME FAMILIES WHEN OUR BILL SPECIFICALLY SUBSIDIZES LOWINCOME FAMILIES AND TARGETS MORE SERVICES TO POOR WOMEN AND CHILDREN THERE ARE NO NEW TAXES IN THE REPUBLICAN BILL LASTLY I AM NOT THE CAMPAIGN REELECTION CHIEF OF THE HOUSE REPUBLICANS BUT CHAIRMAN OF THEIR LEGISLATIVE CAUCUS I CAN'T HELP IT IF GOOD POLICY MAKES GOOD POLITICS AND THAT CLINTON'S BIG GOVERNMENT POLICIES HAVE RESULTED IN SWEEPING REPUBLICAN VICTORIES ACROSS THE COUNTRY THE CLINTON PLAN IS A BUREAUCRATIC NIGHTMARE THAT THREATENS THE QUALITY OF CARE FOR EVERY AMERICAN FAMILY IT SEEKS TO CAST THE TANGLESOME NET OF THE WELFARE STATE OVER AMERICA'S GREAT MIDDLE CLASS HAULING THEM INTO GOVERNMENT DEPENDENCY FOR THEIR HEALTH CARE THE MICHEL/LOTT BILL ENSURES THAT AMERICANS CAN CHANGE JOBS WITHOUT FEAR OF LOSING THEIR INSURANCE CONTAINS MEDICAL COSTS AND EXPANDS AFFORDABLE ACCESS TO THE UNINSURED IT DOES SO WITHOUT RAISING TAXES AND WITHOUT THE BIGGEST EXPANSION OF GOVERNMENT BUREAUCRACY IN FORTY YEARS 9312060123 931206 TRACKING THE ECONOMY BY ALAN YONAN JR A LABOR DEPARTMENT REPORT THIS WEEK WILL PROBABLY SHOW A SCANT 02 RISE FOR NOVEMBER MR SOHN SAID THAT SHOULD CONFIRM THAT OCTOBER'S 04 RISE IN THE CPI WAS A ONETIME BLIP TRIGGERED BY THE FEDERAL GASOLINE TAX INCREASE HE ADDED BUT GASOLINE PRICES AT THE RETAIL LEVEL ARE FALLING BECAUSE OF THE FAILURE OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO LIMIT CRUDE OIL OUTPUT AND MUCH OF THE IMPACT IS YET TO COME MR SOHN SAID EVEN MORE MEANINGFUL HAS BEEN THE INFLUENCE OF LABOR COSTS THE LARGEST SINGLE UNDERLYING FACTOR AFFECTING THE PRICE OF CONSUMER GOODS MR SOHN SAID HOURLY WAGES ARE GOING UP VERY SLOWLY AND PRODUCTIVITY GAINS HAVE BEEN QUITE SUBSTANTIAL AND I DON'T SEE LABOR COSTS RISING ANYTIME SOON HE SAID REALLY THE SITUATION IS JUST WHAT THE DOCTOR ORDERED THE ECONOMY IS PICKING UP SOME STEAM AND INFLATION IS ALMOST NONEXISTENT MR SOHN SAID 9312060122 931206 GENERALI SPA EXPECTS IMPROVEMENT OF 13 IN PREMIUM INCOME MILAN GENERALI SPA AN ITALIAN INSURANCE GROUP SAID IT EXPECTS PREMIUM INCOME FOR THE FIRST NINE MONTHS OF THE YEAR TO RISE 13 FROM THE YEAREARLIER PERIOD THE COMPANY SAID IT EXPECTS 679 BILLION LIRE 39 MILLION OF PREMIUM INCOME FOR THE PERIOD IT DIDN'T PROVIDE YEAREARLIER PREMIUM INCOME THE FIGURES WERE RELEASED AFTER AN EXECUTIVECOMMITTEE MEETING AT GENERALI'S HEADQUARTERS IN TRIESTE ITALY DIRECT ITALIAN UNDERWRITING FOR THE NINEMONTH PERIOD IS EXPECTED TO RISE 77 WITH LIFEINSURANCE UNDERWRITING UP 13 AND DAMAGE COVERAGE UP BY 48 GENERALI SAID IT EXPECTS TO SEE A SLIGHT IMPROVEMENT IN ITS DAMAGE UNDERWRITING AS A RESULT OF FEWER ACCIDENTS IN THE ITALIAN WORKING SECTOR IN THE LIFE SECTOR THE COMPANY DIDN'T GIVE AN EXPLANATION FOR THE EXPECTED IMPROVEMENT THE COMPANY WARNED THAT ITS FINANCIAL FIGURES THIS YEAR WILL BE SUBJECT TO VARIATIONS IN EXCHANGE RATES INVESTMENT IN THE NINEMONTH PERIOD IS EXPECTED TO SURPASS 288 BILLION LIRE UP 12 FROM A YEAREARLIER 2575 BILLION LIRE THE RISE IN INVESTMENT COMES AS A RESULT OF IMPROVEMENT IN FIXED INCOME AND SHARE PURCHASES THE COMPANY SAID BUT DIDN'T ELABORATE IT ADDED THAT IT EXPECTS BEYOND 20 IMPROVEMENT IN ITS INVESTMENTS NEXT YEAR BUT GAVE NO SPECIFIC LIRE FIGURES 9312060121 931206 INTERNATIONAL BRIEF BOMBARDIER INC COMPANY SETTLES DISPUTE IN CHANNEL TUNNEL PROJECT BOMBARDIER INC SAID IT WILL RECEIVE 700 MILLION FRENCH FRANCS 118 MILLION AND 25 MILLION SHARES IN EUROTUNNEL AS SETTLEMENT OF ITS CONTRACT DISPUTE WITH THE ANGLOFRENCH GROUPS INVOLVED IN THE ENGLISHCHANNEL TUNNEL PROJECT THE EUROTUNNEL SHARES TO BE ISSUED SUBJECT TO CONSENT OF EUROTUNNEL SHAREHOLDERS WOULD BE VALUED AT ABOUT ONE BILLION FRANCS BASED ON FRIDAY'S CLOSING PRICE ON THE PARIS EXCHANGE BOMBARDIER SAID IT AGREED NOT TO SELL THE SHARES UNTIL THE SHUTTLETRAIN CARS IT IS BUILDING FOR THE PROJECT ARE ALL COMMISSIONED AROUND THE END OF 1994 BOMBARDIER A TRANSPORTATIONEQUIPMENT MAKER IN MONTREAL HAD CLAIMED 339 BILLION FRANCS FOR COST OVERRUNS AND OTHER DAMAGES IT BLAMED ON TRANSMANCHE LINK THE CONSORTIUM BUILDING THE TUNNEL THE SETTLEMENT WAS APPROVED FRIDAY BY THE BOARDS OF EUROTUNNEL TRANSMANCHE LINK AND BOMBARDIER 9312060120 931206 HONG KONG'S HIGHFLYING PEREGRINE FACES A TEST BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG IN THE FIVE YEARS SINCE IT WAS FOUNDED BY TWO FORMER CITICORP EXECUTIVES PHILIP TOSE AND FRANCIS LEUNG THE PEREGRINE MERCHANT BANKING GROUP HAS BECOME A FORCE TO RECKON WITH IN HONG KONG FINANCE PEREGRINE ACCOUNTED FOR 16 OF ALL THE CAPITAL RAISED ON HONG KONG'S STOCK MARKET LAST YEAR INCLUDING TRANSACTIONS INVOLVING SEVERAL BIG MAINLAND CHINESE COMPANIES AND IT'S REGULARLY AMONG THE FIVE MOSTACTIVE STOCK TRADERS AMONG THE LOCAL EXCHANGE'S 600 MEMBER FIRMS PRETAX PROFIT FOR 1992 WAS 13 TIMES ITS LEVEL ONLY THREE YEARS EARLIER BY NURTURING OBSCURE COMPANIES AND OFTEN ACQUIRING BIG STAKES IN THEM PEREGRINE HAS BUILT UP A FORMIDABLE LIST OF LOYAL AND INCREASINGLY POWERFUL CLIENTS AS A RESULT MR TOSE A GAUNT BRITON WHO HAS WORKED IN HONG KONG FOR TWO DECADES HAS ACQUIRED THE STATUS OF A PINSTRIPED GENERAL IN CHINA'S FINANCIAL REVOLUTION IF YOU WISH TO BE INVOLVED IN DEALS IN HONG KONG AND CHINA YOU HAVE TO LISTEN TO PEREGRINE SAYS MICHAEL THOMAS AN EDINBURGH SCOTLAND FUND MANAGER FOR MARTIN CURRIE INVESTMENT MANAGEMENT LTD THEY HAVE THEIR FINGER ON THE PULSE MORE THAN ANYONE IN HONG KONG BUT NOW PEREGRINE IS SUFFERING GROWING PAINS ITS AGGRESSIVE HONG KONGSTYLE TACTICS HAVE BROUGHT IT TO THE ATTENTION OF REGULATORY AUTHORITIES AND THE TECHNIQUES THAT HAVE WORKED SO WELL IN HONG KONG ARE MAKING IT DIFFICULT FOR PEREGRINE TO BECOME A MAJOR INTERNATIONAL PLAYER TAKEN TOGETHER THESE DIFFICULTIES WILL TEST PEREGRINE'S ABILITY TO MEET ITS GOAL OF STANDING UP TO THE WORLD'S LEADING INVESTMENT BANKS IN ASIA'S BOOMING MARKETS LAST JULY PEREGRINE AND MERRILL LYNCH & CO TEAMED UP TO LEAD AN INITIAL PUBLIC OFFERING OF SHARES IN SHANGHAI PETROCHEMICAL CO TO BE SOLD SIMULTANEOUSLY IN THE US AND HONG KONG AT THE LAST MINUTE FRIGHTENED US INVESTORS CANCELED THEIR ORDERS FOR AROUND A THIRD OF THE ISSUES BECAUSE ANOTHER CHINESE OFFERING IN NEW YORK HAD FLOPPED UNDER HONG KONG'S RIGID RULES PEREGRINE AND MERRILL LYNCH WERE REQUIRED TO BUY A HUGE PORTION OF THE OFFERING THEMSELVES MR TOSE WAS FURIOUS HE TOLD THE SOUTH CHINA MORNING POST IF HONG KONG CANNOT GET ITS ACT TOGETHER IT IS GOING TO LOSE THIS INTERNATIONAL BUSINESS MORE RECENTLY PEREGRINE HAD A RUNIN WITH HONG KONG REGULATORS WHO ARE INTENT ON IMPROVING THE COLONY'S REPUTATION AMONG INTERNATIONAL INVESTORS LAST MONTH HONG KONG'S SECURITIES AND FUTURES COMMISSION REPRIMANDED PEREGRINE'S BROKERAGE ARM FOR ENGAGING IN TRADING ACTIVITY WHICH WAS OR WAS LIKELY TO BE PREJUDICIAL TO THE INTERESTS OF THE INVESTING PUBLIC THE COMMISSION SAYS THE ALLEGED MISCONDUCT WHICH OCCURRED IN 1991 AND 1992 INVOLVED PEREGRINE'S BUYING BACK OF SHARES IT HAD ITSELF EARLIER SOLD THROUGH OTHER BROKERS IN A MANNER WHICH MAY HAVE MISLED THE MARKET AS TO THE REAL DEMAND FOR THE STOCKS IN RESPONSE TO THE COMMISSION'S FINDINGS PEREGRINE AGREED TO PAY 35 MILLION HONG KONG DOLLARS US453075 TO THE STOCK EXCHANGE'S COMPENSATION FUND AND ACKNOWLEDGED THE COMMISSION'S COMPLAINT IN A NEWSPAPER ADVERTISEMENT IN AN ATTEMPT TO COPE WITH ITS GROWING PAINS PEREGRINE RECENTLY HIRED ALAN MERCER A FORMER SECURITIES AND FUTURES COMMISSION OFFICIAL TO BE ITS FIRST COMPLIANCE OFFICER THE FIRM'S ACTIVITIES ARE NOW TOO WIDESPREAD TO BE SUPERVISED ONLY BY ITS DIRECTORS SAYS MR MERCER ESPECIALLY IN THE MIDST OF HONG KONG'S GROWING THICKET OF SECURITIES RULES AND FOREIGN INVESTORS WHO TEND TO BE MORE LITIGIOUS THAN LOCALS ARE BECOMING MORE IMPORTANT TO PEREGRINE'S BUSINESS CERTAINLY PEREGRINE NEEDS TO BUILD A BROADER INTERNATIONAL BASE IF IT IS TO REDUCE ITS HEAVY DEPENDENCE ON HONG KONG WHICH ACCOUNTED FOR 91 OF 1992 PROFIT FOR PEREGRINE INVESTMENTS HOLDINGS LTD THE GROUP'S HOLDING COMPANY THAT'S WHY PEREGRINE IS SETTING UP JOINTVENTURE MERCHANT BANKS WITH LOCAL INDUSTRIALISTS FROM BRISBANE AUSTRALIA TO SEOUL SOUTH KOREA OFTEN USING OVERSEAS CHINESE AS ITS LOCAL PARTNERS SO FAR IT HAS MANAGED TO BECOME AN IMPORTANT UNDERWRITER OF NEW SHARES IN INDONESIA AND THE PHILIPPINES IN SOUTH KOREA HOWEVER THE BIG CONGLOMERATES ALREADY OWN STAKES IN POWERFUL LOCAL BROKERAGE FIRMS SO PEREGRINE HAS HAD TO SETTLE FOR COOPERATING WITH A SMALL COOKINGOIL COMPANY LESS THAN ONE YEAR AFTER STARTING UP THE JOINT VENTURE DONGBANG PEREGRINE SECURITIES COMPANY LTD ALREADY HAS REPLACED ITS SOUTH KOREAN HEAD OF RESEARCH WITH A BRITON WHOSE SPECIALTY IS IN SOUTHEAST ASIAN MARKETS AND REGULATIONS HAVE PREVENTED IT FROM TAKING STAKES IN ANY LOCAL INDUSTRIAL COMPANIES WHILE ITS LOCAL COMPETITORS SERVICE SOUTH KOREA'S PACESETTING SMALL INVESTORS THROUGH NATIONWIDE NETWORKS OF BRANCHES DONGBANG PEREGRINE HAS ONLY TWO RETAIL OUTLETS BOTH IN SEOUL IN SINGAPORE PEREGRINE FAILED TO MAKE THE CUT LAST YEAR WHEN AUTHORITIES CHOSE A FEW FOREIGN FIRMS TO BECOME MEMBERS OF THE LOCAL STOCK EXCHANGE MOST LOCAL MEMBERS OF THE EXCHANGE AREN'T INTERESTED IN JOINT VENTURES EITHER BECAUSE THEY'RE OWNED BY BANKS OR BECAUSE THEY CONSIDER PEREGRINE A REGIONAL COMPETITOR SAYS JUDD KINNE THE FIRM'S SINGAPOREBASED DIRECTOR SO PEREGRINE HAS HAD TO MAKE DO WITH SELLING FOREIGN SHARES TO SINGAPORE INVESTORS RATHER THAN TAKING A LEAD ROLE IN THE MARKET FOR LOCAL SHARES IN MALAYSIA PHILEO PEREGRINE SECURITIES SDN BHD A JOINT VENTURE OWNED BY PEREGRINE AND A MALAYSIAN SECURITIES FIRM HAS BUILT UP A REPUTATION OF BEING ABLE TO TRADE BIG BLOCKS OF STOCK BUT PHILEO PEREGRINE LAGS WELL BEHIND THE LOCAL LEADERS IN MALAYSIA'S IMPORTANT RETAIL MARKET KUALA LUMPUR'S MARKET IS DRIVEN LARGELY BY SMALL INVESTORS FROM THE CAPITAL THAT HURTS PHILEO PEREGRINE WHICH IS RESTRICTED UNDER MALAYSIAN RULES TO SERVING RETAIL CLIENTS ONLY IN THE AREA AROUND ITS HEADQUARTERS IN IPOH A CITY ABOUT 200 KILOMETERS FROM KUALA LUPUR YET FOR ALL ITS TROUBLES MR TOSE EXPRESSES CONFIDENCE THAT PEREGRINE CAN MAINTAIN AND EXPAND ITS ASIAN BUSINESS I THINK THERE WILL BE CHANGES IN PEREGRINE AS ASIAN MARKETS EVOLVE HE SAYS NOT HE QUICKLY ADDS THAT WE OURSELVES WILL HAVE TO UNDERGO GREAT CHANGES 9312060119 931206 INTERNATIONAL BRIEF FAG KUGELFISCHER KGAA OPERATING LOSS NARROWED DURING THE THIRD QUARTER FAG KUGELFISCHER KGAA SAID ITS THIRDQUARTER OPERATING LOSS NARROWED NOTICEABLY AND EXPECTS IMPROVEMENT TO CONTINUE IN THE FOURTH QUARTER WHILE THE GERMAN BALLBEARING MAKER DIDN'T DISCLOSE ANY SPECIFIC FIGURES IT ATTRIBUTED THE IMPROVEMENT TO ITS RESTRUCTURING PROGRAM GROUP SALES FOR THE FULL YEAR ARE EXPECTED TO BE AROUND 15 LOWER THAN IN 1992 AT ABOUT THREE BILLION MARKS 174 BILLION THE COMPANY ATTRIBUTED THAT DROP TO THE DIVESTITURE OF SOME SUBSIDIARIES AND UNITS INCLUDING A PLANT IN KUENSEBECK ITS HYDRAULIC BRAKE UNIT AND A DATAPROCESSING UNIT KUGELFISCHER SAID 10400 JOBS HAVE BEEN SHED IN THE FIRST NINE MONTHS OF THE YEAR OR 335 OF THE 31000 JOBS AT THE END OF 1992 BY THE END OF THE YEAR ONLY ABOUT HALF OF LAST YEAR'S NUMBER WILL REMAIN THE COMPANY SAID 9312060118 931206 UHAUL'S UNSOLICITED 3095 MILLION BID FOR PARTNERSHIPS COUNTERS RIVAL'S PLAN BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL UHAUL INTERNATIONAL INC OFFERED TO PAY 3095 MILLION FOR PARTNERSHIPS THAT OWN 139 SELFSERVICE STORAGE CENTERS IN AN UNSOLICITED BID THAT COULD TURN INTO A TAKEOVER BATTLE THE MOVE IS AN EFFORT BY THE PRIVATELY HELD TRUCK AND TRAILER RENTAL COMPANY TO SHARPLY ACCELERATE THE EXPANSION OF ITS ALREADY FASTGROWING STORAGE BUSINESS WHICH OPERATES NEARLY 700 FACILITIES IN THE US AND CANADA THE PROPOSAL BY UHAUL PHOENIX WILL VIE WITH A PLAN TO ROLL UP OR CONSOLIDATE THE 17 LIMITED PARTNERSHIPS AND CONVERT THEM INTO A PUBLICLY TRADED REALESTATE INVESTMENT TRUST THE ROLLUP PLAN HAS BEEN PROPOSED BY THE MAIN OWNERS OF SHURGARD INC A CLOSELY HELD SEATTLE COMPANY THAT OPERATES THE CENTERS UNDER MANAGEMENT AGREEMENTS WITH THE PARTNERSHIPS SHURGARD IS UNLIKELY TO GREET UHAUL'S BID FAVORABLY THE PROSPECTUS FOR SHURGARD'S PROPOSED CONVERSION VALUES THE ASSETS OF THE PARTNERSHIPS AT 3874 MILLION 25 HIGHER THAN UHAUL'S OFFER AND SHURGARD CLEARLY HOPES THAT THIS YEAR'S HOT MARKET FOR REAL ESTATE INVESTMENT TRUSTS WILL MAKE THE PARTNERSHIPS' STOCKMARKET VALUE EVEN HIGHER IN ADDITION UNDER A UHAUL TAKEOVER SHURGARD WOULD FACE THE LIKELY LOSS OF THE FEES FROM ITS CONTRACTS TO MANAGE THE STORAGE FACILITIES SHURGARD'S CONTROLLING SHAREHOLDER AND CHIEF EXECUTIVE OFFICER CHARLES K BARBO IS A GENERAL PARTNER OF ALL THE PARTNERSHIPS HE AND THE OTHER GENERAL PARTNERS SAID THEY WOULD MAKE A RECOMMENDATION ON UHAUL'S BID AND THEY ASKED THE LIMITED PARTNERS NOT TO ACCEPT IT BEFORE THEN THE UHAUL OFFER EXPIRES JAN 3 BOTH THE UHAUL BID AND THE ROLLUP PROPOSAL WOULD GIVE MORE LIQUIDITY TO THE LIMITED PARTNERS MOST OF WHOM HAVE SEEN THEIR INVESTMENTS DECLINE SHARPLY IN VALUE SINCE THE PARTNERSHIPS WERE FORMED BETWEEN 1979 AND 1986 ACCORDING TO THE SHURGARD PROSPECTUS THE PROPERTIES IN THE PARTNERSHIPS WOULD FETCH IN THE REAL ESTATE MARKET ONLY 78 OF THE ORIGINAL AMOUNT INVESTED BY THE PARTNERS BECAUSE THE PARTNERSHIP STAKES AREN'T WIDELY TRADED INVESTORS WHO WANTED TO CASH OUT HAVE BEEN FORCED TO ACCEPT EVEN LESS IN MANY CASES AS LITTLE AS HALF OF THE AMOUNT THEY PUT IN WHILE UHAUL'S BID IS ALL CASH THE ROLLUP PROPOSAL GIVES INVESTORS THE CHOICE OF STOCK IN THE NEW REIT OR NOTES THAT MATURE IN 2000 IF SHURGARD DECIDES TO FIGHT UHAUL ONE OPTION WOULD BE TO BORROW MONEY TO CHANGE THE ROLLUP OFFER TO ALL CASH ONCE THE CONSOLIDATION WAS COMPLETE THE NEW COMPANY WOULD THEN GO PUBLIC AND REPAY THE LOAN AN ACQUISITION BY UHAUL COULD HURT ITS RIVAL RYDER SYSTEM INC OF MIAMI WHICH RENTS TRUCKS AT MANY OF THE SHURGARD STORAGE CENTERS UHAUL WHICH IS CONTROLLED BY THE SHOEN FAMILY THROUGH ITS HOLDING COMPANY AMERCO HAS STORAGE FACILITIES IN ALL 50 STATES AND SIX CANADIAN PROVINCES AND HAS BEEN EXPANDING THROUGH ACQUISITIONS AND CONSTRUCTION HOMES ARE SCALING DOWN IN SIZE A UHAUL SPOKESWOMAN SAID ONE OF THE FIRST THINGS TO GO IS THEIR SPARE STORAGE SPACE 9312060117 931206 BUSINESS BRIEF NORTHEAST UTILITIES REGULATORS FINE COMPANY 237500 OVER LEAKY VALVE NORTHEAST UTILITIES HARTFORD CONN SAID IT WAS FINED 237500 BY THE NUCLEAR REGULATORY COMMISSION FOR SAFETY VIOLATIONS AT ITS MILLSTONE 2 NUCLEAR PLANT IN WATERFORD CONN THE FINE CAME IN CONNECTION WITH AN INCIDENT IN AUGUST INVOLVING A LEAKING VALVE IN A SYSTEM THAT PURIFIES WATER FOR THE COOLANT SYSTEM THE INCIDENT SHUT DOWN THE PLANT FOR A WEEK A NORTHEAST UTILITIES SPOKESMAN SAID THAT AN INVESTIGATION AFTER THE INCIDENT FOUND THAT THE VALVE HAD LEAKED MORE THAN 30 TIMES IN THE PREVIOUS TWO MONTHS AND BEEN REPAIRED WITH A SEALANT EACH TIME AFTER THE SEALING HADN'T WORKED A FEW TIMES THEY SHOULD HAVE SHUT THE PLANT DOWN HE SAID WHEN THE SEALANT COULDN'T CONTROL THE PROBLEM IN AUGUST THE PLANT AUTOMATICALLY SHUT DOWN AND WORKERS WERE EVACUATED NO RADIATION ESCAPED INTO THE ENVIRONMENT THE SPOKESMAN SAID HE SAID THE COMPANY HAS SINCE CHANGED ITS PROCEDURES AFTER INVESTIGATING AND REVIEWING NORTHEAST'S REPORT THE NRC SENT A MESSAGE THEY WERE VERY DISAPPOINTED IN NORTHEAST UTILITIES AND THEY DIDN'T WANT TO SEE IT HAPPEN AGAIN WE WERE VERY DISAPPOINTED IN OURSELVES 9312060116 931206 MARKETING BRIEF OSBORN COMMUNICATIONS CORP ACQUISITION PLANS ARE SET FOR SEVEN RADIO STATIONS OSBORN COMMUNICATIONS CORP SAID IT AGREED TO ACQUIRE SEVEN RADIO STATIONS FROM TWO COMPANIES PENDING APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION THE ACQUISITIONS WILL BRING TO 16 THE NUMBER OF STATIONS OWNED BY THE NEW YORKBASED OSBORN THE DIVERSIFIED COMMUNICATIONS COMPANY SAID IT AGREED TO ACQUIRE WAYVFM ATLANTIC CITY NJ FROM RADIO WAYV INC TERMS WEREN'T DISCLOSED OSBORN ALSO AGREED TO ACQUIRE SIX STATIONS FROM HERITAGE BROADCAST GROUP INC FOR 225 MILLION INCLUDING WKSFFM AND WWNCAM IN ASHEVILLE NC WOLZFM IN FORT MYERS FLA WFKSFM IN DAYTONA BEACH FLA AND WQENFM AND WAAXAM IN GADSDEN ALA 9312060115 931206 INTERNATIONAL FOILED MERGER SPURS OVERHAUL OF AB VOLVO ELECTION OF NEW BOARD SEEN IN JANUARY SALE LIKELY OF PERIPHERAL BUSINESSES BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AS AB VOLVO OFFICIALS SIFT THROUGH THE WRECKAGE OF THEIR FAILED MEGAMERGER WITH RENAULT OF FRANCE ABOUT ALL THEY CAN PREDICT WITH CONFIDENCE IS THAT THE SWEDISH AUTO MAKER WILL LOOK DRASTICALLY DIFFERENT IN A FEW MONTHS THAT NEW LOOK WILL HIGHLIGHT A RETURN OF STRATEGIC FOCUS TO CORE VEHICLE OPERATIONS AND PRUNING AMONG THE SPATE OF PERIPHERAL BUSINESSES FROM CIGARETTES AND MATCHES TO FOOD AND PHARMACEUTICALS ACCUMULATED AS COUNTERWEIGHTS TO THE VOLATILE AUTO INDUSTRY NONCORE BUSINESSES ARE LIKELY TO GO ON THE BLOCK TO RAISE AN ESTIMATED EIGHT BILLION KRONOR 9456 MILLION VOLVO NEEDS FOR ACUTE EQUITY INJECTIONS AT CAR AND TRUCK UNITS MEANWHILE PLENTY OF NEW FACES ARE DUE TO ARRIVE STARTING WITH A NEW BOARD NEARLY HALF OF VOLVO'S DIRECTORS RESIGNED IMMEDIATELY LAST WEEK WITH LONGTIME CHAIRMAN PEHR GYLLENHAMMAR REMAINING DIRECTORS ALSO OFFERED THEIR RESIGNATIONS THOUGH THEY AGREED TO CONTINUE IN A CARETAKER CAPACITY UNTIL THE NEW BOARD IS CHOSEN NO DATE HAS BEEN SET BUT VOLVO OFFICIALS SAID AN EXTRAORDINARY GENERAL MEETING TO ELECT A NEW BOARD LIKELY WILL BE IN EARLY JANUARY VOLVO OFFICIALS SUGGEST THAT FOR THE SAKE OF CONTINUITY THEY HOPE AT LEAST SOME INCUMBENTS CAN BE PERSUADED TO CONTINUE BUT AFTER THE BOARD'S HUMILIATING CAPITULATION ON THE PROPOSED RENAULT MERGER IT ISN'T CLEAR WHETHER ANY WOULD AGREE TO STAY OR BE ACCEPTABLE TO BIG INSTITUTIONAL INVESTORS WHO ARE EXPECTED TO TAKE A MUCH MORE ACTIVE ROLE IN RUNNING THE COMPANY THE BOARDROOM CARNAGE VAULTED VOLVO CHIEF EXECUTIVE SOEREN GYLL OUT OF MR GYLLENHAMMAR'S SHADOW ONTO CENTER STAGE A 53YEAROLD SWEDE WHO HAD DABBLED IN EVERYTHING FROM COMPUTERS TO STEEL BEFORE BECOMING VOLVO'S CHIEF EXECUTIVE 18 MONTHS AGO MR GYLL PULLED OFF A TRICKY BALANCING ACT IN RECENT WEEKS AND HE APPARENTLY MANAGED TO RETAIN CONFIDENCE OF BOTH INVESTORS AND STAFF IN THE PROCESS FIRST HE LOYALLY SUPPORTED THE RENAULT MERGER PLAN UNTIL IT WAS FINALLY DOOMED BY MOUNTING OPPOSITION FROM INVESTORS AND VOLVO EMPLOYEES THEN IN A TENSE BEHINDTHESCENES ABOUTFACE LAST WEEK MR GYLL FORWARDED TO MR GYLLENHAMMAR AND OTHER DIRECTORS DEMANDS FROM VIRTUALLY UNANIMOUS TOP MANAGEMENT THAT THE CORPORATE MARRIAGE PROPOSAL BE SCUTTLED FOLLOWING HIS RESIGNATION AFTER 22 YEARS AS VOLVO PRESIDENT OR CHAIRMAN MR GYLLENHAMMAR DROPPED SOME BARBED COMMENTS ABOUT MR GYLL'S RELATIVE INEXPERIENCE BUT MR GYLL COMMANDS CONFIDENCE AMONG VOLVO'S BIG INSTITUTIONAL SHAREHOLDERS A CRUCIAL ASSET AS HE ATTEMPTS TO KEEP VOLVO ON COURSE IN COMING WEEKS AMID FALLOUT FROM THE FAILED MERGER INVESTORS' INITIAL REACTION TO VOLVO'S BOARDROOM SHAKEUP WAS NEGATIVE THE COMPANY'S BENCHMARK CLASS B STOCK PLUNGED 17 KRONOR TO 441 KRONOR IN HEAVY TRADING HERE ON FRIDAY BUT ANALYSTS SAID THE DECLINE WAS EXAGGERATED BY PROFITTAKING BY SPECULATIVE INVESTORS WHO PILED INTO THE STOCK AS DOUBTS ABOUT THE RENAULT MERGER MOUNTED LAST WEEK VOLVO CLASS B SHARES ARE UP 29 FOR THE YEAR BUT 10 BELOW THE LEVEL AT WHICH THEY WERE TRADING BEFORE THE PROPOSED RENAULT MERGER WAS ANNOUNCED SOME ANALYSTS EXPECT PROSPECTS OF IMPROVING EARNINGS TO SPUR A RALLY IN THE STOCK IN COMING MONTHS DESPITE CONTINUED UNCERTAINTY ABOUT RELATIONS WITH RENAULT LONGERTERM WORRIES PERSIST HOWEVER RENAULT OFFICIALS HAVE BEEN GUARDED IN PUBLIC COMMENTS ABOUT THE PLAN'S COLLAPSE IN ONE WORRISOME HINT RENAULT CHAIRMAN LOUIS SCHWEITZER CAUTIONED THAT THE FRENCH COMPANY INTENDS TO REEVALUATE SOME PROPOSED COOPERATION SUCH AS DEVELOPMENT OF A JOINT PLATFORM TO REPLACE TOPOFTHELINE CAR MODELS AT BOTH COMPANIES LATE IN THE DECADE EXPECTED SAVINGS THROUGH SUCH JOINT MODEL DEVELOPMENT WAS A MAJOR FACTOR UNDERLYING THE MERGER PROPOSAL THE PROBLEM FOR VOLVO IS NOT ONE YEAR OR TWO YEARS OUT BUT FOR THE NEXT FIVE YEARS THEY ARE NOT BIG ENOUGH WITH ONLY 15 OF THE EUROPEAN MARKET AND THEY WILL HAVE TROUBLE FINANCING NEW MODELS IN THE NEXT DEVELOPMENT CYCLE SAID FRANCOIS COLLI AUTO ANALYST AT PARIBAS CAPITAL MARKETS GROUP IN LONDON VOLVO ALSO FACES MORE IMMEDIATE FINANCIAL PRESSURES UNDER A PRICEADJUSTMENT CLAUSE BASED ON CARDIVISION PROFITS BETWEEN 1990 AND 1993 THE SWEDISH COMPANY WILL BE FORCED TO PAY RENAULT ONE BILLION FRENCH FRANCS BY MID1994 MOREOVER VOLVO'S CAR DIVISION AND RENAULT'S TRUCK DIVISION NEED MAJOR EQUITY INJECTIONS SOON VOLVO ESTIMATED THAT ITS PART OF THOSE EQUITY INJECTIONS WOULD REACH EIGHT BILLION KRONOR BUT COMPANY OFFICIALS ACKNOWLEDGE THAT VOLVO MIGHT END UP PICKING UP MORE OF THE TAB IF RENAULT DECLINES TO INJECT CAPITAL IN VOLVO'S CAR DIVISION THUS DILUTING ITS 25 STAKE IN IT VOLVO MAY DECIDE TO ASK SHAREHOLDERS FOR NEW CAPITAL TO COVER AT LEAST PART OF THE OUTLAYS BUT DIVESTMENTS ARE ANOTHER OPTION ONE FOR WHICH MR GYLL HAS SHOWN A STRONG PREFERENCE THROUGHOUT HIS CAREER AUDREY CHOI IN BONN CONTRIBUTED TO THIS ARTICLE 9312060114 931206 INTERNATIONAL INVESTMENT BOOSTERS IN ZHUHAI CHINA INSIST THERE ARE ENOUGH PROJECTS FOR ALL BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL ZHUHAI CHINA BUSES STUFFED WITH FOREIGN INVESTORS RACE THROUGH THIS NEW CITY WITH FULL POLICE ESCORT FIRECRACKERS STRUNG FROM STREET LIGHTS EXPLODE IN HAZY BURSTS OF RED PAPER WE'RE SEVEN MINUTES FROM THE AIRPORT FOUR MINUTES TO THE RAILROAD AND 15 MINUTES TO THE PORT OR DOWNTOWN AN OFFICIAL PROCLAIMS OVER A LOUDSPEAKER TO THE MORE THAN 100 OVERSEAS CHINESE AND OTHER FOREIGNERS EMERGING FROM THE BUSES NEVER MIND THAT THE AIRPORT THE RAILROAD STATION THE PORT AND EVEN MUCH OF DOWNTOWN ARE STILL UNDER CONSTRUCTION THAT'S WHY THE FOREIGN INVESTORS HAVE BEEN INVITED HERE TO CONSIDER HELPING TO DEVELOP THIS SPECIAL ECONOMIC ZONE JUST NORTH OF THE THRIVING PORTUGUESEADMINISTERED TERRITORY OF MACAO WE HAVE 20 BILLION IN PROJECTS AVAILABLE BOASTS TIAN CHENGGANG DIRECTOR OF ZHUHAI'S COMMISSION OF FOREIGN ECONOMIC RELATIONS AND TRADE WE CAN ACCOMMODATE EVERYBODY IT'S BEEN A ROLLERCOASTER RIDE THIS YEAR FOR FOREIGN INVESTORS IN CHINA BUT JUDGING BY LAST WEEK'S BASH IN ZHUHAI ONE OF CHINA'S BIGGEST RECENT GATHERINGS OF PROSPECTIVE INVESTORS THE FRENZY OF INTEREST IN THE WORLD'S FASTESTGROWING MARKET REMAINS INTENSE CHINA'S BLISTERING 128 GROWTH RATE LAST YEAR GAVE WAY EARLIER THIS YEAR TO A STERN EFFORT BY BEIJING AT AUSTERITY AND CORRUPTION INFLATION AND FEARS OF HIGHER TAXES FLARED SEVERAL MONTHS AGO BUT ANY CONCERNS ABOUT THE COOLING EFFECT LASTING ARE DIM AMONG THE LOCAL OFFICIALS AND INVESTORS AT ZHUHAI'S FAIR PROJECTIONS THAT CHINA'S ECONOMY WILL GROW ABOUT 13 AGAIN THIS YEAR ARE BANDIED ABOUT BY ZHUHAI'S MAYOR LIANG GUANGDA A HONG KONG NEWSPAPER ARTICLE QUOTING CHINESE LEADER DENG XIAOPING AS SAYING THAT ECONOMIC GROWTH IS MORE IMPORTANT THAN AN ANTICORRUPTION DRIVE IS ALL THE BUZZ AMONG THE OVERSEAS CHINESE ENCOURAGED EVERYBODY AT THE FAIR IS LOOKING FOR OPPORTUNITIES TO MAKE A PROFIT NO MATTER HOW SMALL ZHUHAI ENTERPRISES HAVE SET UP BOOTHS TO MEET INVESTORS BUT THEIR STAFFS SPEND MUCH OF THE DAY IN SEARCH OF GIFTS OFFERED BY OTHER ENTERPRISES COATED PAPER BAGS WITH STRING HANDLES AND PRINTED LOGOS ARE THE MOST POPULAR OUTSIDE ASPIRING BUSINESSMEN IN RUMPLED SUITS LOITER IN THE HALLS DO YOU WANT TO INVEST IN A FACTORY WHISPERS ZENG XIAODONG HANDING OUT CARDS IDENTIFYING HIMSELF AS VICE GENERAL MANAGER OF A LOCAL PROPERTY DEVELOPER WE HAVE FACTORIES HOTELS AND APARTMENTS THE GETRICHNOW MOOD IS INFECTIOUS AT THE FIVESTAR YINDO HOTEL WHERE ZHUHAI IS PUTTING UP SEVERAL DOZEN OF THE NEARLY 1000 INVESTORS WHO HAVE COME A SIGN LISTS OFFICES FOR COMPANIES INCLUDING WEALTH COME INTERNATIONAL LTD AND POWERFUL ORGANIZATION I NEVER EXPECTED CHINA WOULD BE SO DEVELOPED MARVELS JIM WALKER GENERAL MANAGER OF CELTIC SHIPYARDS LTD A CANADIAN MAKER OF ALUMINUM BOATS WHO ON HIS FIRST VISIT IS TRYING TO DECIDE WHERE IN CHINA TO SET UP A FACTORY IN THE EYES OF SOME CHINESE OFFICIALS MR WALKER'S QUESTION IS WHAT THIS FAIR IS ALL ABOUT WHETHER FOREIGNERS WILL CHOOSE TO INVEST IN ZHUHAI OR SOMEWHERE ELSE IN CHINA IT IS ASSUMED THAT MOST WANT TO INVEST IN CHINA IF THEY HAVEN'T ALREADY INDEED MANY VISITORS AT THE FAIR ARE BEHIND THE MORE THAN 3300 FOREIGNBACKED COMPANIES THAT ALREADY HAVE INVESTED 2 BILLION SINCE THIS ONCETINY FARMING VILLAGE WAS DESIGNATED A SPECIAL INVESTMENT ZONE 13 YEARS AGO NOW THE FOREIGN COMPANIES ACCOUNT FOR AT LEAST 200 MILLION OF ZHUHAI'S 1 BILLION IN ANNUAL EXPORTS AND EMPLOY AT LEAST 100000 OF ZHUHAI'S 600000 PEOPLE FAIRS LIKE THIS ONE WHICH OFFERED MORE THAN 1000 PEOPLE FREE HOTEL ROOMS MEALS AND SIRENBLARING POLICE ESCORTS ARE AIMED AT REMINDING OLD INVESTORS AND PERSUADING NEWCOMERS THAT ZHUHAI UNDERSTANDS THEIR NEEDS BETTER THAN OTHER AREAS JOHNSON CS HO A CANADIAN WHO EMIGRATED FROM CHINA THREE DECADES AGO AND IS NOW DIRECTOR OF VANCOUVERBASED DRT RESOURCES LTD SAYS HE'S IMPRESSED WITH THE BUSINESS SAVVY OF THE SOUTHERN CHINESE THEY ARE MORE MARKET ORIENTED HE SAYS HOURS BEFORE SIGNING A MEMORANDUM OF UNDERSTANDING TO DEVELOP A 50 MILLION AMUSEMENT PARK ON A NEARBY ISLAND IN THE SOUTH CHINA SEA BUT AS ZHUHAI'S PLANNERS LIKE TO POINT OUT THIS IS JUST THE BEGINNING GATHERING FOR A GROUNDBREAKING AT THE RIBBONFESTOONED SITE OF A FUTURE TECHNOLOGY PARK INVESTORS WATCH AS LOCAL OFFICIALS PROUDLY UNVEIL A GRANITE FOUNDATION STONE FOR THE VAST PROJECT CARVED LARGE IN CHINESE CHARACTERS ARE THE WORDS THE FOUNDATION 9312060113 931206 FORD'S FIKE TO RETIRE FROM EUROPEAN UNIT DETROIT FORD MOTOR CO SAID WILLIAM H FIKE 57 YEARS OLD IS RETIRING AT THE END OF THIS MONTH AS PRESIDENT OF THE AUTO MAKER'S EUROPEAN UNIT MR FIKE WHO IN 1991 BECAME PRESIDENT OF FORD OF EUROPE INC IS ENDING A 28YEAR CAREER AT FORD THAT INCLUDED EXECUTIVE POSITIONS IN THE COMPANY'S AUTOMOTIVE COMPONENTS DIVISION IN LATIN AMERICA HE HEADED FORD OF BRAZIL INC AND HELPED TO ESTABLISH AUTOLATINA INC FORD'S JOINT VENTURE WITH VOLKSWAGEN AG IN SOUTH AMERICA MR FIKE'S POSITION WILL GO UNFILLED AS PART OF FORD'S PREVIOUSLY ANNOUNCED GOAL OF REDUCING ITS HOURLY AND SALARIED STAFF IN EUROPE TO 83000 BY THE END OF THIS YEAR FROM 115000 IN 1990 AFTER MR FIKE'S RETIREMENT HIS SUBORDINATES WILL REPORT DIRECTLY TO JAC NASSER CHAIRMAN OF FORD OF EUROPE INC 9312060112 931206 NASD WILL PROPOSE SPECIAL ARBITRATION TO COVER SOME CASES WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WILL PROPOSE SPECIAL ARBITRATION PROCEDURES TO HANDLE COMPLEX SECURITIES CASES OR CLAIMS TOTALING MORE THAN 1 MILLION NASD SENIOR ATTORNEY ELLIOTT CURZON SAID THE SPECIAL PROCEDURES WILL BE MORE SIMILAR TO CIVIL LITIGATION THAN MOST ARBITRATION PROCEEDINGS MR CURZON SAID FOR EXAMPLE HE SAID THE PROCEDURES WILL INCLUDE MORE CONFERENCES AMONG THE PARTIES AND WILL INVOLVE FAIRLY COMPLEX RULES COVERING RECORDS AND DATA THAT THE PARTIES MUST SHARE WITH EACH OTHER BEFORE A HEARING THE PROCEDURES ARE INTENDED TO GIVE CLAIMANTS IN LARGE OR COMPLEX CASES A BIT MORE CONFIDENCE IN THE FAIRNESS OF THE PROCEEDING MR CURZON SAID IN AN INTERVIEW THE SPECIAL PROCEDURES HAVE BEEN APPROVED BY THE NASD BOARD AND WILL BE FORWARDED TO THE SECURITIES AND EXCHANGE COMMISSION FOR ITS APPROVAL SAID MR CURZON WHO WILL DRAFT THE PROPOSAL FOR THE SEC A POOL OF SPECIALLY QUALIFIED ARBITRATORS WILL BE SELECTED TO HEAR THE COMPLEX CASES MR CURZON SAID ADDING THAT THE NASD HASN'T DECIDED WHAT THE PREREQUISITES FOR THE JOBS WILL BE ALTHOUGH THEY PROBABLY WILL INCLUDE EXTENSIVE EXPERIENCE IN ARBITRATION THE SPECIAL PROCEDURES WILL BE AVAILABLE FOR BOTH INVESTORS' COMPLAINTS AGAINST BROKERS AND COMPLAINTS BY BROKERS OR FIRMS AGAINST EACH OTHER MR CURZON SAID THE NASD ARBITRATION PROCESS CURRENTLY HANDLES ABOUT 5000 CASES A YEAR AND MR CURZON SAID HE EXPECTS THAT FEW OF THOSE CASES WOULD QUALIFY FOR THE SPECIAL ARBITRATION VERY FEW CASES SEEK DAMAGES OF AS MUCH AS 1 MILLION EVEN INCLUDING PUNITIVE DAMAGES WHICH ARE DESIGNED TO PUNISH DEFENDANTS FOR WRONGDOING MR CURZON SAID AND BECAUSE OF THE ADDITIONAL TIME RECORDS AND EXPENSE OF THE SPECIAL PROCEEDINGS MR CURZON SAID I SUSPECT A LOT OF PARTIES WON'T NECESSARILY WANT TO INVOLVE THEMSELVES WITH THE PROCEDURES 9312060111 931206 MARKETING & MEDIA GAYLORD ENTERTAINMENT AGREES TO PARTNERSHIP WITH BASS PRO SHOPS NASHVILLE TENN GAYLORD ENTERTAINMENT CO IN A MOVE THAT POSITIONS THE COMPANY FOR EXPANSION INTO VIDEO HOME SHOPPING SAID IT FORMED A PARTNERSHIP WITH BASS PRO SHOPS A CATALOG AND RETAIL SUPPLIER OF OUTDOOR SPORTING GOODS THE COUNTRYMUSIC AND COMMUNICATIONS CONCERN SAID IT WILL FINANCE AN EXPANSION OF BASS PRO OPERATIONS IN RETURN FOR A MINORITY INTEREST IN A NEWLY CREATED PARTNERSHIP COMPRISED OF MOST OF BASS PRO'S HOLDINGS TERMS OF THE AGREEMENT WEREN'T DISCLOSED IN ADDITION TO SELLING FISHING HUNTING AND OTHER OUTDOOR EQUIPMENT BASS PRO MAKES BOATS AND RUNS A 1200ACRE RESORT NEAR COUNTRYMUSIC HOTBED BRANSON MO UNDER THE NEW PARTNERSHIP BASS PRO A CLOSELY HELD COMPANY BASED IN SPRINGFIELD MO AIMS TO DEVELOP INFOMERCIALS AND HOMESHOPPING SHOWS IN ADDITION BASS PRO PLANS TO EXPAND ITS LODGE AND BUILD AT LEAST ONE MORE SPORTS EQUIPMENT SHOWROOM THE COMPANY'S 150000SQUAREFOOT OUTDOOR WORLD SHOWROOM IN SPRINGFIELD IS MISSOURI'S NO 1 TOURIST ATTRACTION AND EXPECTS FOUR MILLION VISITORS IN 1993 GAYLORD SAID GAYLORD PROVIDES LIVE COUNTRY MUSIC THROUGH NASHVILLE'S GRAND OLE OPRY AND TWO CABLE NETWORKS THE NASHVILLE NETWORK AND COUNTRY MUSIC TELEVISION THE BASS PRO DEAL MAKES SENSE A COMPANY SPOKESMAN SAID BECAUSE MEMBERS OF GAYLORD'S COUNTRYMUSIC AUDIENCE ARE TWICE AS LIKELY AS MOST AMERICANS TO PURSUE OUTDOOR SPORTS 9312060110 931206 WHO'S NEWS TEXAS INSTRUMENTS ALTERS MANAGEMENT SETS UP OFFICE OF THE CHIEF EXECUTIVE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TEXAS INSTRUMENTS INC RESHUFFLED ITS TOP MANAGEMENT MOVING TWO VETERAN MANAGERS INTO A NEW OFFICE OF THE CHIEF EXECUTIVE AND PROMOTING FOUR UPANDCOMERS TO NEW POSTS ANALYSTS SAID THE MOVES ANNOUNCED AT A COMPANY MEETING FRIDAY MUDDY THE SUCCESSION WATERS AT THE ELECTRONICS CONCERN WHILE SIGNALING THAT JERRY R JUNKINS TI'S 55YEAROLD CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT DOESN'T PLAN TO STEP DOWN ANY TIME SOON I DON'T READ ANYTHING MORE TO IT THAN JUNKINS WANTING TO BRING IN TWO KEY PEOPLE TO SIT ON EITHER SIDE OF HIM SAID DANIEL KLESKEN AN ANALYST AT ROBERTSON STEPHENS & CO IN SAN FRANCISCO TI SAID THE NEW OFFICE OF THE CHIEF EXECUTIVE PATTERNED AFTER SIMILAR SETUPS AT OTHER BIG SEMICONDUCTOR COMPANIES WOULD CONSIST OF MR JUNKINS WILLIAM B MITCHELL 57 WHO FORMERLY WAS AN EXECUTIVE VICE PRESIDENT IN CHARGE OF TI'S DEFENSE AND SOFTWARE GROUPS AND WILLIAM P WEBER 53 WHO RAN TI'S SEMICONDUCTOR BUSINESS UNDER THE NEW ARRANGEMENT MESSRS MITCHELL AND WEBER WILL HOLD THE NEW TITLE OF VICE CHAIRMAN MR WEBER HAS LONG BEEN VIEWED AS AN HEIR APPARENT TO MR JUNKINS PARTICULARLY IN LIGHT OF A RECENT TURNAROUND IN THE COMPANY'S SEMICONDUCTOR OPERATIONS SOME COMPANY WATCHERS THOUGH NOW QUESTION THAT STATUS AS MR WEBER WASN'T THE ONLY NEW VICE CHAIRMAN NAMED AND WASN'T GIVEN ANY OF MR JUNKINS'S OTHER TITLES IN THE TRANSITION MR JUNKINS SAID HE MADE THE MOVES TO ENABLE TI'S TOP MANAGEMENT TO SPEND MORE TIME WITH KEY CUSTOMERS AND PARTNERS PARTICULARLY IN INTERNATIONAL MARKETS IT'S NOT TRYING TO FIX SOMETHING IT'S JUST TRYING TO PREPARE FOR THE KIND OF GROWTH WE SEE AROUND THE WORLD HE SAID PEOPLE GET TITILLATED BY ORGANIZATIONAL CHANGES THAT'S NOT THE ISSUE HERE TO SUCCEED MR WEBER AT THE COMPUTER CHIP BUSINESS TI'S LARGEST UNIT THE COMPANY NAMED 40YEAROLD THOMAS J ENGIBOUS AS EXECUTIVE VICE PRESIDENT MR ENGIBOUS FORMERLY A SENIOR VICE PRESIDENT WAS RESPONSIBLE FOR TI'S APPLICATIONSPECIFIC CHIP BUSINESS A RECENT FOCUS OF THE COMPANY AS IT WORKED TO MOVE AWAY FROM THE COMMODITY MEMORYCHIP BUSINESS OTHER NEW EXECUTIVE VICE PRESIDENTS NAMED ARE WILLIAM F HAYES 50 THE FORMER CHIEF OF TI'S DEFENSE BUSINESS WHO NOW WILL OVERSEE NEW CORPORATE VENTURES AND THE COMPANY'S SOFTWARE BUSINESS GARY D CLUBB 48 AN EXECUTIVE VICE PRESIDENT OF THE DEFENSE BUSINESS WHO SUCCEEDS MR HAYES AND DAVID D MARTIN 54 FORMERLY A VICE PRESIDENT IN CHARGE OF INTERNATIONAL OPERATIONS AND CONSUMER PRODUCTS WHO WILL CONTINUE TO RUN TI'S MATERIALS AND CONTROLS BUSINESS CUSTOM MANUFACTURING AND ELECTRONIC PRODUCTS SUCH AS NOTEBOOK COMPUTERS PRINTERS AND EDUCATIONAL TOYS TEXAS INSTRUMENTS SHARES CLOSED FRIDAY AT 64125 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9312060109 931206 GLOBAL VIEW AS SHARE PRICES CLIMB BEWARE OF LIQUIDITY TRAPS BY GEORGE MELLOAN WITH ONE VERY IMPORTANT EXCEPTION NOT MUCH GOOD NEWS IS NEEDED THESE DAYS TO SEND STOCK PRICES MERRILY SKYWARD THAT ONE EXCEPTION IS JAPAN BUT THEN JAPAN DOESN'T HAVE ANY GOOD NEWS YET EVEN THE NIKKEI FEEBLY RECOVERED LAST WEEK FROM A MONDAY NOSEDIVE THAT SHOULD HAVE CAUSED SHIVERS IN BULL MARKETS ELSEWHERE NOWHERE IS THERE MORE BULLISHNESS THAN IN EUROPE WHERE BOTH THE LONDON FTSE AND FRANKFURT DAX STOCK INDICES LAST WEEK HIT NEW PEAKS MARKET WATCHERS ATTRIBUTED THE LONDON UPSURGE TO CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE'S PROMISE TO ERADICATE BRITAIN'S PUBLIC SECTOR BORROWING REQUIREMENT AND PUT THE GOVERNMENT INTO SURPLUS BY THE END OF THE CENTURY THE CHANCELLOR WONDER OF WONDERS ACTUALLY INTENDS TO CUT GOVERNMENT SPENDING NEXT YEAR BUT THE MAIN THRUST OF THE APRIL AND NOVEMBER BUDGET MESSAGES IS THAT BRITS WILL PAY OUT MORE AND MORE OF THEIR INCOME FOR TAXES AS THAT DRIVE TOWARD BUDGETARY BALANCE PROCEEDS EVEN THE SPENDING CUTS CENTER HEAVILY ON SUBSIDIES TO LOCAL GOVERNMENT THE UPSHOT BEING THAT LOCAL TAXES WILL GO UP RIGHT AWAY TO OFFSET REDUCED HELP FROM THE NATIONAL TREASURY MR CLARKE IS GOOD WITH NUMBERS AND EVEN HAS SOME USEFUL IDEAS FOR ENCOURAGING SMALL BUSINESS BUT THERE IS NO NEW THATCHERITE REVOLUTION IN SIGHT THERE IS EVEN LESS TO STIR THE SPIRIT OR EXPLAIN THE RISE IN THE DAX IN GERMANY THE BUNDESBANK CUT ITS SECURITIES REPURCHASE OR REPO RATE A BIT BUT LEFT ITS DISCOUNT AND LOMBARD RATES UNCHANGED THE DECLINE IN WESTERN GERMANY'S FACTORY ORDERS SEEMS TO HAVE BOTTOMED OUT BUT UNEMPLOYMENT STILL IS RISING GERMANY'S ECONOMIC PROSPECTS ARE BETTER THAN JAPAN'S BUT THERE ARE NO IMPORTANT SIGNALS OF ECONOMIC RECOVERY IN NEW YORK WHERE THE ECONOMIC NEWS WAS BEST OF ALL THE MARKET WAS MORE CAUTIOUS BUT NONETHELESS CONTINUED TO INCH BACK TOWARD THE NEW HIGH REACHED BY THE DOW IN NOVEMBER MAYBE NEW YORK PAID A BIT MORE ATTENTION THAN EUROPE TO THAT RED LIGHT THAT FLASHED IN JAPAN LAST MONDAY THIS IS NOT TO SAY THAT THERE IS NO GOOD NEWS IN THE WORLD PROSPECTS FOR A GATT ACCORD BEFORE THE END OF THE YEAR ARE MUCH IMPROVED AS THE US AND EUROPE MAKE SOME BARGAINING PROGRESS THE US RECOVERY IS BEGINNING TO LOOK LIKE THE REAL THING AS CONSUMER BUYING PICKS UP AND UNEMPLOYMENT DIPS A STRONG US RECOVERY COULD DO WONDERS FOR THE WORLD'S LESSER ECONOMIES IF THE GLOBAL ECONOMY PULLS OUT OF ITS SLUMP IT MAY PROVE THAT STOCK MARKETS WERE RIGHT ALL ALONG THE INFLATION NEWS ALSO REMAINS BULLISH WITH PRICE INDEXES AT LOW LEVELS ALMOST EVERYWHERE EXCEPT IN POSTCOMMUNIST OR THIRD WORLD COUNTRIES BUT SOME TRADERS MAY HAVE QUIVERED A BIT WHEN LAST WEEK BEGAN WITH A SHARP PLUNGE IN THE NIKKEI STOCK AVERAGE IN TOKYO AS THE EVENTS OF OCTOBER 1987 DEMONSTRATED FINANCIAL SHOCKS CAN BE LIKE A ROLLING BARRAGE STARTING IN TOKYO AND CIRCLING THE GLOBE WITH THE RISING SUN THAT NO SUCH THING HAPPENED IS REASSURING BUT IT DOESN'T DIMINISH THE WARNING CONTAINED IN TOKYO'S BRIEF DOWNWARD BLIP JAPAN IT WILL BE RECALLED WAS THE VICTIM OF A STOCK MARKET BUBBLE OR MORE PRECISELY THE BURSTING OF SUCH A BUBBLE IN THE 1990S EVEN AFTER LAST WEEK'S WOBBLY RECOVERY THE NIKKEI IS ONLY AT 47 OF THE HEADY LEVEL OF FOUR YEARS AGO ITS PRECIPITOUS DECLINE AND INABILITY TO SUSTAIN A RECOVERY DESPITE LIBERAL GOVERNMENT PUMP PRIMING DEMONSTRATES WHAT CAN HAPPEN WHEN MARKETS FALL VICTIM TO A LIQUIDITY TRAP LIQUIDITY THAT THE MARKETS THOUGHT THEY HAD SUDDENLY VANISHES AS SECURITIES PRICES PLUNGE BALANCE SHEETS EVERYWHERE PARTICULARLY IN BANKS IN THE CASE OF JAPAN SUDDENLY GO FROM LOOKING STRONG TO LOOKING FRIGHTENINGLY WEAK SHORTTERM INTEREST RATES OF LESS THAN 2 HAVE DONE LITTLE SO FAR TO OVERCOME THIS DANGEROUS WEAKNESS THAT'S WHY LAST MONDAY'S SUDDEN DECLINE SHOOK UP TOKYO'S FINANCIAL CROWD THE QUESTION IS WHETHER A JAPANESETYPE BUBBLE HAS BEEN INFLATING IN OTHER MARKETS WITH SIMILAR DANGERS THE ANSWER IS THAT SUCH A DANGER DOES EXIST AND SOME ECONOMISTS HAVE BEEN WARNING OF IT BUT IT SEEMS UNLIKELY THAT THE DAMAGE WOULD BE AS GREAT AS IN JAPAN THE BURST OF THE JAPANESE BUBBLE EXPOSED THE VERY SERIOUS WEAKNESSES OF THE JAPAN INC MODEL THAT SOME AMERICANS WERE WORSHIPPING ONLY A FEW YEARS AGO BECAUSE OF ITS KEIRETSU SYSTEM OF INTERLOCKING SHAREHOLDINGS WITH MAJOR BANKS AT THE CENTER OF THESE NETWORKS THERE WERE FEW BALANCE SHEETS THAT COULD ESCAPE THE SUDDEN EVAPORATION OF LIQUIDITY THE ABILITY TO RAISE CAPITAL CHEAPLY WHICH HAS BEEN SUCH A BOON TO JAPANESE INDUSTRY VANISHED AS WELL IN THE US THE RATIO BETWEEN STOCK PRICES AND CORPORATE EARNINGS THE P/E RATIO HAS RISEN TO INTERESTING LEVELS BUT NOWHERE NEAR THE FANTASTIC NUMBERS OF JAPAN'S BINGE GERMAN BANKS OWN CORPORATE SHARES BUT NO ONE WOULD ACCUSE THE BUNDESBANK OF SUPPLYING THE GERMAN MARKETS WITH AN EXCESS OF LIQUIDITY THE LONDON MARKET UNLIKE TOKYO IS BROADLY BASED AND LESS SUBJECT TO MAJOR TREMORS BUT THE US FEDERAL RESERVE HAS BEEN MORE THAN GENEROUS IN SUPPLYING LIQUIDITY IN THE 1990S AS MARKET ANALYST JAMES GRANT OBSERVED ON THE PAGE OPPOSITE LAST FRIDAY MUCH OF THIS MONEY HAS GONE INTO THE SECURITIES MARKETS PUMPING UP STOCKS AND UNTIL RECENTLY BONDS AS WELL CORPORATIONS HAVE BEEN FLOATING STOCK ISSUES MERRILY TO TAKE ADVANTAGE OF THE HIGH P/E RATIOS BOND FINANCING RAGES THE BANK OF ENGLAND'S NOVEMBER QUARTERLY BULLETIN REPORTED THAT INTERNATIONAL BOND FINANCING IN THE FIRST THREE QUARTERS OF 1993 EXCEEDED THE TOTAL RAISED DURING THE WHOLE OF 1992 IT DOESN'T TAKE MUCH IMAGINATION TO SEE THAT THE LARGE BUDGET DEFICITS AND REFINANCING NEEDS OF GOVERNMENTS FUEL DEMAND THE BOND MARKET ALREADY HAS STARTED TO SOFTEN SENDING YIELDS UPWARD FROM ATTRACTIVELY LOW LEVELS IF THE LIQUIDITY TRAP SHOULD SPRING THROUGHOUT THE SECURITIES MARKETS WOULD IT DAMP ECONOMIC RECOVERY MAYBE NOT UNLIKE IN JAPAN SECURITIES OWNERSHIP IN THE US HAS BEEN SPREAD BROADLY THROUGH MUTUAL AND PENSION FUNDS A BEAR MARKET WOULD AFFECT HOUSEHOLD BALANCE SHEETS BUT MAYBE NOT AS SERIOUSLY AS DID THE RECENT DEFLATION IN REAL ESTATE INDEED IF THE FED KEEPS PUMPING OUT MONEY THERE MAY BE A REFLATION IN REAL ASSETS AND AS MR GRANT SUGGESTS COMMODITIES SHOULD THE LIQUIDITY TRAP SNAP THE FED COULD TAKE SHORTTERM INTEREST RATES LOWER BUT AS WITH THE BANK OF JAPAN IT DOESN'T HAVE MUCH ROOM LEFT ON THE DOWNSIDE THAT'S ONE REASON WHY JAPAN'S PROBLEMS ARE AT LEAST WORTH NOTICING AS STOCK PRICES IN THE US AND EUROPE CLIMB TO EVER HIGHER LEVELS 9312060108 931206 RTC SELLS BULK OF HOMEFED'S DEPOSITS TO GREAT WESTERN 3 SAVINGS CONCERNS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RESOLUTION TRUST CORP ANNOUNCED THE SALE OF NEARLY ALL OF THE INSURED DEPOSITS OF HOMEFED BANK SAN DIEGO TO GREAT WESTERN FINANCIAL CORP AND THREE CALIFORNIA SAVINGS INSTITUTIONS THE SEALEDBID ACQUIRERS OF 134 BANKING OFFICES AND CERTAIN DEPOSITS IN TWO OTHERS WILL ASSUME A TOTAL OF ABOUT 47 BILLION OF DEPOSITS FROM THE FAILED THRIFT THEY WILL ALSO BUY 4934 MILLION OF HOMEFED'S CASH LOANS AND OTHER ASSETS THE WINNING BANKS IN THE NOV 19 AUCTION ALSO WILL PAY THE RTC PREMIUMS TOTALING 1638 MILLION TO REDUCE THE AGENCY'S HOMEFED DEPOSITPAYOFF OBLIGATIONS THE COMBINED PREMIUMS ARE THE LARGEST RECEIVED BY THE RTC FOR THE DEPOSITS OF ONE INSTITUTION THE RTC WILL ADVANCE AN ESTIMATED 4 BILLION TO THE ACQUIRING BANKS TO COVER THE HOMEFED DEPOSITS WHILE KEEPING ASSETS WITH A BOOK VALUE OF ABOUT 38 BILLION FOR LATER SALE THE ULTIMATE NET COST TO THE RTC IS EXPECTED TO BE ABOUT 13 BILLION THE AGENCY SAID DISPOSING OF THE ASSETS AND DEPOSIT RESPONSIBILITIES OF HOMEFED A LARGE FAILED THRIFT INSTITUTION UNDER THE RTC'S WING HAS BEEN A LONG AND TEDIOUS TASK FOR THE AGENCY THE HOMEFED EXERCISE HAS BEEN MARKED BY CHARGES BY THE RTC INSPECTOR GENERAL AND THE HOUSE BANKING COMMITTEE THAT THE AGENCY ALLOWED SIZABLE EXCESSIVE BILLINGS FOR COPYING AND OTHER SERVICES BY ACCOUNTANT PRICE WATERHOUSE CO AND OTHER CONTRACTORS GREAT WESTERN CHATSWORTH CALIF A 38 BILLION THRIFT WILL ACQUIRE MOST OF THE HOMEFED OFFICES AND DEPOSITS PAYING THE RTC A 1512 MILLION PREMIUM TO ACQUIRE 119 BRANCHES WITH DEPOSITS OF ABOUT 41 BILLION GREAT WESTERN ALSO AGREED TO ASSUME THE INSURED DEPOSITS OF ACCOUNTS WITH CHECKING PRIVILEGES AT TWO OTHER HOMEFED OFFICES THE RTC WILL DIRECTLY PAY OFF THE 36 MILLION IN INSURED SAVINGS AND OTHER ACCOUNTS WITHOUT CHECKING PRIVILEGES AT THOSE TWO BRANCHES GREAT WESTERN HAD LONG COVETED THE ATTRACTIVE DEPOSITS AND BRANCH NETWORK OF THE DEFUNCT HOMEFED GREAT WESTERN HAS WANTED TO IMPROVE ITS BRANCHES IN BOTH CALIFORNIA AND FLORIDA FOR FUTURE GROWTH OTHER WINNING BIDDERS IN THE HOMEFED AUCTION WERE FIRST INTERSTATE BANK OF CALIFORNIA LOS ANGELES A UNIT OF FIRST INTERSTATE BANCORP WHICH PAID 61 MILLION FOR 2465 MILLION IN DEPOSITS AT FOUR HOMEFED BRANCH OFFICES FIRST FEDERAL BANK OF CALIFORNIA SANTA MONICA CALIF A UNIT OF FIRSTFED FINANCIAL CORP WHICH PAID 29 MILLION FOR 1432 MILLION IN DEPOSITS AT THREE BRANCHES FAMILY SAVINGS BANK LOS ANGELES WILL IMMEDIATELY ACQUIRE ONE OF THE BRANCHES FROM FIRST FEDERAL HOME SAVINGS OF AMERICA IRWINDALE CALIF A UNIT OF HF AHMANSON & CO WHICH PAID 36 MILLION FOR 1914 MILLION IN DEPOSITS AT EIGHT BRANCHES FIRST FEDERAL SAVINGS & LOAN ASSOCIATION OF SAN BERNARDINO CALIF WILL ACQUIRE ONE OF THOSE BRANCHES FROM HOME SAVINGS 9312060107 931206 WHITE HOUSE CLEARS NEGOTIATED RATES ACT COVERING TRUCK FEES WASHINGTON PRESIDENT CLINTON SIGNED A BILL THAT LIMITS THE ABILITY OF DEFUNCT TRUCKING COMPANIES TO GO AFTER FORMER CUSTOMERS WHO NEGOTIATED LOW RATES DURING THE 1980S THE BILL CALLED THE NEGOTIATED RATES ACT IS AIMED AT BANKRUPTCY TRUSTEES WHO HAVE TRIED TO BILL TRUCKING CUSTOMERS FOR THE DIFFERENCE BETWEEN THE RATES THEY PAID AND THE OFFICIAL RATES FILED BY THE TRUCKER WITH THE INTERSTATE COMMERCE COMMISSION THE SUPREME COURT RULED IN 1990 THAT SUCH UNDERCHARGES WERE ILLEGAL AND THE POTENTIAL COST OF REPAYING THEM RAN INTO THE BILLIONS OF DOLLARS UNDER THE NEW LAW TRUCKING CUSTOMERS THAT GET UNDERCHARGE CLAIMS RELATED TO GOODS SHIPPED BEFORE SEPTEMBER 1990 CAN SETTLE THEM FOR 20 OF THE UNDERCHARGE AMOUNT OR 15 DEPENDING ON THE WEIGHT FOR SMALL BUSINESSES THE CLAIMS WOULD BE WIPED OUT COMPLETELY OR THEY CAN SEEK A RULING FROM THE ICC THAT THE RATES THEY PAID WERE LEGITIMATE EVEN IF THEY WERE LOWER THAN THE RATES ON FILE TRANSPORTATION UNIONS INCLUDING THE TEAMSTERS HAD OPPOSED THE LAW SAYING IT WOULD DEPRIVE WORKERS OF A CHANCE TO RECOVER UNPAID WAGES FROM THE BANKRUPTCY ESTATES OF DEFUNCT TRUCKING COMPANIES SUCH AS PIE NATIONWIDE INC BUT THE LAW PASSED BY WIDE MARGINS IN BOTH THE SENATE AND HOUSE IT REMOVES THE UNCERTAINTY AND IT LETS PEOPLE GET BACK TO THE BUSINESS THEY'RE SUPPOSED TO BE DOING SAID ED EMMETT PRESIDENT OF THE NATIONAL INDUSTRIAL TRANSPORTATION LEAGUE WHICH REPRESENTS CUSTOMERS OF TRUCKERS HE SAID TRUSTEES WILL STILL TRY TO PRESSURE SHIPPERS TO SETTLE CLAIMS THOUGH AND THAT THE BILL IS ONLY A SHORTTERM SOLUTION 9312060106 931206 IRANCONTRA REPORT TO BE RELEASED WITH FEW DELETIONS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A THREEJUDGE PANEL SAID IT SOON WILL RELEASE THE SPECIAL PROSECUTOR'S FINAL REPORT ON THE IRANCONTRA SCANDAL AND THE DOCUMENTS WILL BE LARGELY INTACT THE COURT NOT ONLY CONSIDERS IT APPROPRIATE BUT IN THE PUBLIC INTEREST THAT AS FULL A DISCLOSURE AS POSSIBLE BE MADE THE PANEL RULED FRIDAY WE ANTICIPATE DELETIONS IF ANY WILL BE MINOR RELEASE COULD COME WITHIN DAYS ACCORDING TO OFFICIALS AT THE US APPEALS COURT HERE THE DECISION IS A MAJOR VICTORY FOR PRESS ORGANIZATIONS WHICH HAD FEARED MAJOR PORTIONS WOULD BE SUPPRESSED BY FORMER REAGAN ADMINISTRATION OFFICIALS CRITICIZED IN ITS FINDINGS FILLING HUNDREDS OF PAGES THE REPORT IS THE MOST COMPLETE ACCOUNT YET OF INDEPENDENT COUNSEL LAWRENCE WALSH'S INVESTIGATION OF SECRET US ARMS SALES TO IRAN IN THE 1980S AND THE DIVERSION OF PROCEEDS FROM THOSE SALES TO FINANCE A GUERRILLA ARMY SEEKING TO OVERTURN THE SANDINISTA REGIME THEN IN NICARAGUA MR WALSH SUBMITTED HIS FINDINGS TO THE COURT LAST AUGUST BUT THE REPORT HAS REMAINED SECRET SINCE THEN TO PERMIT FORMER GOVERNMENT OFFICIALS TO RESPOND THESE RESPONSES NOW WILL BE PART OF A SPECIAL APPENDIX TO BE RELEASED WITH THE REPORT UNDER THE COURT ORDER FRIDAY SEPARATE CLASSIFIED MATERIAL FILED WITH MR WALSH'S REPORT WILL REMAIN PROTECTED BY THE COURT THE PANEL'S RULING CAME IN RESPONSE TO A MOTION FILED LAST WEEK BY THE SOCIETY OF PROFESSIONAL JOURNALISTS THE REPORTERS COMMITTEE FOR FREEDOM OF THE PRESS AND THE NATIONAL SECURITY ARCHIVE A PRIVATE RESEARCH GROUP LONG ACTIVE IN SEEKING RELEASE OF MATERIAL RELATED TO THE IRANCONTRA OPERATION THE SPEED AND WORDING OF THE DECISION DELIGHTED ATTORNEYS REPRESENTING THESE ORGANIZATIONS BRUCE SANFORD COUNSEL FOR THE PROFESSIONAL JOURNALISTS DESCRIBED THE ORDER AS A SURPRISINGLY STRONG STATEMENT OF THE PUBLIC INTEREST AT STAKE 9312060105 931206 ECONOMY SALES OF CARS LIGHT TRUCKS JUMP 123 AS BIG THREE BOOST THEIR MARKET SHARE BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT NEWVEHICLE SALES SURGED IN LATE NOVEMBER AS THE BIG THREE CONTINUED TO RACK UP MARKETSHARE GAINS AT THE EXPENSE OF JAPANESE AUTO MAKERS NORTH AMERICANBUILT CARS AND LIGHT TRUCKS HIT AN ANNUAL SELLING PACE OF 134 MILLION VEHICLES IN THE LAST 10 DAYS OF NOVEMBER ONLY THE SECOND TIME THE RATE HAS TOPPED 13 MILLION IN THE PAST TWO YEARS THAT COMPARES WITH AN 119 MILLION SELLING RATE A YEAR EARLIER AND A 124 MILLION RATE IN THE PREVIOUS 30 DAYS OVERALL THE AUTO INDUSTRY SOLD 343437 NORTH AMERICAN BUILT VEHICLES FROM NOV 21 TO NOV 30 A 123 INCREASE FROM A YEAR BEFORE TRUCK SALES SHOT UP 202 WHILE CAR SALES CLIMBED 69 FOR THE MONTH OF NOVEMBER THE INDUSTRY SOLD 1117436 NORTH AMERICANBUILT VEHICLES UP 104 THE RESURGENT AUTO SALES ALONG WITH SOME OTHER POSITIVE ECONOMIC INDICATORS MAY MEAN THE US ECONOMY IS FINALLY KICKING INTO HIGH GEAR DEALERS REPORT THAT SHOWROOM TRAFFIC IS UP AND THAT CUSTOMERS ARE BECOMING MORE UPBEAT BUYERS ARE IN A REAL POSITIVE STATE OF MIND SAID SCOTT BOGGESS SALES MANAGER OF A CHEVROLET DEALERSHIP IN MADISONVILLE KY EVEN IN CALIFORNIA WHERE THE ECONOMY REMAINS ROCKY SOME DEALERS REPORTED A STRONG NOVEMBER WE TURNED A LOT OF MERCHANDISE AND DECEMBER LOOKS TO BE BRIGHTER THAN NORMAL SAID ED BARWICK A CHRYSLER DEALER IN NAPA CALIF MR BARWICK SAYS HIS REGION HAS BEEN ROCKED BY THE GOVERNMENT'S DECISION TO CLOSE THE NEARBY MARE ISLAND NAVAL SHIPYARD BUT CAR BUYERS ARE STREAMING IN ANYWAY BECAUSE OF HOT NEW CHRYSLER PRODUCTS INCLUDING THE DODGE RAM PICKUP TRUCK THE BIG THREE AUTO MAKERS CAPTURED 743 OF THE US PASSENGERVEHICLE MARKET IN NOVEMBER UP FROM A 733 SLICE A YEAR EARLIER THE JAPANESE AUTO MAKERS SAW THEIR SHARE SLIP TO 225 OF THE MARKET FROM 233 A YEAR EARLIER OF THE BIG THREE JAPANESE COMPANIES ONLY NISSAN MOTOR CO POSTED A SALES GAIN GENERAL MOTORS CORP SOLD 375113 VEHICLES IN NOVEMBER A 136 INCREASE FROM A YEAR EARLIER CAR SALES ROSE 127 WHILE TRUCK SALES IMPROVED 151 GM'S HOTTEST SELLERS CONTINUED TO BE ITS CHEVROLET CAMARO AND PONTIAC FIREBIRD SPORTS CARS WHICH WERE REDESIGNED EARLIER THIS YEAR BUT GM ALSO GOT SOLID SALES INCREASES FROM MANY OF ITS MASSMARKET VEHICLES SUCH AS THE PONTIAC SUNBIRD COMPACT CAR WHICH SAW ITS VOLUME RISE 466 FROM A YEAR EARLIER FORD MOTOR CO SOLD 288041 CARS AND TRUCKS FOR THE MONTH A 131 IMPROVEMENT FROM A YEAR EARLIER TRUCK SALES SHOT UP 256 WHILE CAR SALES INCHED UP 28 HF BOECKMANN II WHO OWNS A BIG FORD DEALERSHIP IN SEPULVEDA CALIF SAID HE HAD STRONG DEMAND FOR ALL HIS MODELS EXCEPT THE BADLY DATED FORD TEMPO COMPACT CAR WHICH IS BEING REDESIGNED NEXT YEAR STRONG JAGUARS FORD'S JAGUAR UNIT SOLD 1356 CARS MORE THAN DOUBLE ITS YEARBEFORE SALES AND ITS BIGGEST MONTH SINCE DECEMBER 1990 JAGUAR RECENTLY LAUNCHED A CUTRATE TWOYEAR LEASE PROGRAM IN WHICH A BUYER CAN LEASE A 52000 XJ6 FOR 2500 DOWN AND 579 A MONTH SEPARATELY FORD ANNOUNCED THAT IT WILL STOP REPORTING CAR SALES EVERY 10 DAYS EFFECTIVE JANUARY AND REPORT THEM ONLY ON A MONTHLY BASIS GM MADE A SIMILAR ANNOUNCEMENT EARLIER LAST WEEK HONDA MOTOR CO SAW ITS NOVEMBER SALES SLIDE 97 REFLECTING A 16 DROP IN ITS TOP SELLER THE MIDSIZED ACCORD TOYOTA MOTOR CORP'S SALES DECLINED 32 NOTE THERE WERE 25 SELLING DAYS IN THE MOST RECENT MONTH AND 24 A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9312060104 931206 HANSON CROSSES ATLANTIC TO WOO INVESTORS BUT BRITISH SHY AWAY AS GROWTH SLOWS LEADERSHIP AGES BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON A TELEVISION COMMERCIAL IN THE US SHOWS A MYTHICAL WALL STREET BARON BOASTING ABOUT HIS POWER ONLY TO SEE HIS EMPIRE COLLAPSE WHEN THE STOCK MARKET GOES BUST THE MESSAGE IT'S A MISTAKE TO PREFER PAPER MONEY OVER REAL PRODUCTS SUCH AS TIMBER AND COAL THE AD FOR BRITAIN'S HANSON PLC IS MEANT TO PLUG THE COMPANY'S STRATEGY OF INVESTING BASIC INDUSTRIES BUT EAST OF THE ATLANTIC SOME THINK COMPANY FOUNDERS LORD HANSON AND LORD WHITE ARE BEGINNING TO PAY THE PRICE FOR BEING AS OPPORTUNISTIC AS THE STOCKSHUFFLING WALL STREET BARON THEY DERIDE AFTER SPENDING TWO DECADES BUILDING HANSON INTO A 156 BILLION CONGLOMERATE THROUGH ONE SWASHBUCKLING ACQUISITION AFTER ANOTHER THE TWO HAVE HIT A DRY PATCH BIG DEALS ARE SCARCE THE STOCK IS NO LONGER A HIGHFLIER AND HANSON'S BUSINESSES TIMBER COAL CHEMICALS BRICKS GRAVEL CIGARETTES FAIL TO ENCHANT LONDON'S FINANCIAL COMMUNITY MORE TELLING RECESSION AND A COAL STRIKE CAUSED A 21 DROP IN PRETAX PROFIT FOR THE FISCAL YEAR ENDED SEPT 30 FOR THE FIRST TIME IN ITS HISTORY HANSON FAILED TO RAISE ITS DIVIDEND HOPING TO CUT DEBT AND RAISE 1 BILLION 149 BILLION THE COMPANY HAS PUT VARIOUS DIVISIONS ON THE BLOCK AND LAST WEEK SAID IT PLANS TO ISSUE SHARES OF ITS HOMEBUILDING BUSINESS IN THE US AND THE UNITED KINGDOM MEANWHILE THE TWO FOUNDERS ARE IN THEIR SEVENTIES AND SPECULATION SWIRLS ABOUT WHETHER THEIR SUCCESSORS CAN FILL THEIR SHOES WITH SUCH MALAISE IN THE MOTHERLAND HANSON THE COMPANY IS DOING AGAIN WHAT LORD WHITE FOUNDER OF HANSON'S US ARM DID 20 YEARS AGO CROSSING THE ATLANTIC IN OCTOBER HANSON CLOSED A TRANSACTION TO BUY QUANTUM CHEMICAL CORP FOR 720 MILLION IN STOCK AND THE ASSUMPTION OF 25 BILLION IN DEBT THAT WILL BRING ANNUAL US REVENUE TO ABOUT 96 BILLION OR MORE THAN HALF OF HANSON'S TOTAL MORE IMPORTANTLY AS BRITISH INVESTORS UNLOAD HANSON STOCK AMERICANS ARE BUYING TODAY 27 OF HANSON SHARES TRADED SINCE 1986 AS AMERICAN DEPOSITARY RECEIPTS ON THE NEW YORK STOCK EXCHANGE ARE HELD BY US INVESTORS THAT'S UP FROM 14 JUST OVER TWO YEARS AGO SINCE HANSON BEGAN ITS US AD CAMPAIGN MORE THAN 15000 PEOPLE HAVE CALLED TO REQUEST AN ANNUAL REPORT AFTER HITTING A 52WEEK LOW OF 16875 HANSON ADRS RECOVERED TO 21 BY THE MIDDLE OF LAST WEEK BEFORE CLOSING FRIDAY AT 19625 IN COMPOSITE BIG BOARD TRADING HOWEVER THE SHARES STILL TRADE AT A DISCOUNT TO THE MARKET HANSON BRAGS IN ITS ADS ABOUT ITS 28YEAR 19 ANNUAL GROWTH IN PERSHARE EARNINGS BUT IN THE RECENTLY ENDED FISCAL YEAR PERSHARE EARNINGS ACTUALLY DECLINED MORE THAN 30 THESE DAYS HANSON EXECUTIVES TALK OF INCREASING ANNUAL EARNINGS AT TWICE THE RATE OF INFLATION FOR THE NEXT 20 YEARS WHILE MAINTAINING A DIVIDEND YIELD OF ABOUT 6 WITH STOCKS OF OTHER UK COMPANIES EXPECTED TO RISE IN THE NEXT THREE MONTHS HANSON SHARES NOW ARE DEAD MONEY SAID ONE ANALYST MOREOVER UK OBSERVERS CONTEND THAT THE COMPANY IS AT SEA WHEN IT COMES TO LONGTERM STRATEGY HANSON ISN'T A CREATURE OF INDUSTRY IT'S A CREATURE OF THE STOCK MARKET SAID A CONSULTANT WHO HAS DONE WORK FOR THE COMPANY THEIR MICROMANAGEMENT IS BRILLIANT BUT THEIR MACROMANAGEMENT IS NONEXISTENT THAT MIGHT BE ABOUT TO CHANGE DERRICK BONHAM LORD HANSON'S PROBABLE SUCCESSOR IN THE UK AND DAVID CLARKE LORD WHITE'S DESIGNATED SUCCESSOR IN THE US HAVE NONE OF THE FLAMBOYANCE LORDS HANSON AND WHITE BUT AS VETERAN HANSON EXECUTIVES THEY DO HAVE THEIR OWN PLANS AT THEIR URGING THE FOUNDERS AGREED TO SHED SOME SMALLER OPERATIONS THAT BOGGED DOWN MANAGEMENT WHILE CONTRIBUTING LITTLE TO PROFIT LAST MONTH THE COMPANY ANNOUNCED THE SALE OF ITS AXELSON OILEQUIPMENT BUSINESS TO WHEATLEY TXT CORP IN TULSA OKLA FOR 56 MILLION 832 MILLION AS WELL AS THE SALE OF ITS US OFFICEPRODUCTS GROUP FOR 110 MILLION TO CORPORATE EXPRESS OF AURORA COLO COMBINED WITH THE PLANNED ISSUE OF STOCK IN BEAZER ITS HOMEBUILDING DIVISION THE SALES COULD RAISE UP TO 1 BILLION IN THE NEXT 12 MONTHS BUSINESSES SUCH AS TOMMY ARMOUR GOLF PRODUCTS FABERWARE COOKWARE AND VALLEY POOL TABLES AND ELECTRONIC DART GAMES MIGHT BE THE NEXT TO GO IN AN INTERVIEW MR BONHAM PRESENTLY DEPUTY CHAIRMAN OF HANSON PLC AND MR CLARKE DEPUTY CHAIRMAN OF HANSON INDUSTRIES IN THE US SAID THE COMPANY'S GROWTH WILL COME FROM DULLBUTPREDICTABLE OPERATIONS SUCH AS AGGREGATES CHEMICALS COAL AND CIGARETTES AS THE US AND UK ECONOMIES IMPROVE HANSON WILL MAKE BOLTON ACQUISITIONS SUCH AS QUANTUM TO EXPAND THE BUSINESSES IT ENTERED DURING THE '80S MR BONHAM 50 YEARS OLD ALSO EXPRESSED INTEREST IN EXPANDING INTO THE PACIFIC RIM WHERE ECONOMIES ARE GROWING AT DOUBLEDIGIT RATES FOR THE TIME BEING HANSON PROBABLY WON'T MAKE MAJOR ACQUISITIONS BUT THAT COULD CHANGE WITH THE WIND WHEN SOMETHING BECOMES AVAILABLE SAID MR CLARKE 52 YEARS OLD HANSON HAS ALWAYS BEEN AN OPPORTUNISTIC COMPANY HE SAID THE PROBLEM IS WHERE DOES ONE LOOK FOR OPPORTUNITY INDEED WITH SURGING STOCK MARKETS IN THE US AND UK RUNNING AHEAD OF ANY RECOVERY ACQUISITIONS AREN'T THERE LORDS HANSON AND WHITE REFUSED TO BE INTERVIEWED FOR THIS ARTICLE BUT IN AN UNRELATED INTERVIEW LAST DECEMBER LORD WHITE RUED HAVING ASSEMBLED AN 8 BILLION WAR CHEST ONLY TO FIND PRICES TOO HIGH WE ACCUMULATED AN ENORMOUS AMOUNT OF CASH BASED ON THE PROBABILITY THAT SOONER OR LATER THERE WOULD BE A TURNDOWN IN THE MARKET SAID LORD WHITE WHO AT 70 REMAINS THE COMPANY'S SENIOR MERGERSANDACQUISITIONS MAN IT HASN'T HAPPENED HANSON'S FAILURE TO WIN ITS BIDS FOR RANKS HOVIS MCDOUGALL PLC A BREAD MAKER AND IMPERIAL CHEMICAL INDUSTRIES PLC A MAJOR BRITISH INDUSTRIAL CONCERN HAS SPARKED SPECULATION THAT THE FIRM HAS LOST ITS TOUCH BUT IN THE US INVESTORS HAVE COME TO VALUE OPERATING FLAIR A HANSON STRENGTH UNLIKE US CONGLOMERATES HANSON HASN'T SUFFERED FROM A REPUTATION OF INTEMPERATE SPENDING AND BOUNDLESS EXPANSION PROSPERING INSTEAD THROUGH FINANCIAL CONTROL HANSON DOESN'T RUN OPERATIONS IT HIRES PEOPLE THAT KNOW HOW TO RUN OPERATIONS SAID PETER LILLEY PRESIDENT OF EASTERN ASSOCIATED COAL CORP A UNIT OF HANSON'S PEABODY HOLDING A MAJOR COAL PRODUCER MANAGERS ARE REQUIRED TO DEVELOP AGGRESSIVE BUDGETS FOCUSING ON PROFIT CASH FLOW CAPITAL SPENDING AND RETURN ON INVESTMENT THEN ONCE HANSON APPROVES SUCH A BUDGET EACH MONTH IT GETS A REPORT FROM EVERY COMPANY COMPARING PERFORMANCE WITH BUDGET NUMBERS HANSON IS IN THE PROCESS OF APPLYING THIS RATIONALE TO QUANTUM MR CLARKE SAID HE IS BETTING THAT HANSON BOUGHT THE COMPANY AT THE BOTTOM OF THE DOWNTURN IN POLYETHYLENE A MAJOR QUANTUM PRODUCT SO IS POISED TO BENEFIT FROM A TURNAROUND IN ITS BEST YEAR 1988 QUANTUM HAD AN OPERATING PROFIT OF 760 MILLION NEARLY AS MUCH AS LAST YEAR'S EARNINGS FOR ALL OF HANSON'S US OPERATIONS HOWEVER QUANTUM'S OPERATING PROFIT LAST YEAR WAS A MERE 614 MILLION BUT HANSON CAN'T ALWAYS BET RIGHT FOR INSTANCE THE COAL STRIKE THAT BEGAN IN FEBRUARY IS LASTING FAR LONGER THAN ANTICIPATED THE STRIKE THE COMPANY SAID COST IT 125 MILLION IN ITS RECENTLY ENDED FISCAL YEAR OBSERVERS SAY LORD HANSON DIDN'T HELP WHEN HE ISSUED A STATEMENT IN JUNE ACCUSING THE UNION OF SABOTAGE BUT THE LORDS THESE DAYS ARE INCREASINGLY DIVORCED FROM THE BUSINESS OF HANSON PLC LORD WHITE RECENTLY MARRIED FOR THE THIRD TIME SUFFERS FROM BOUTS OF COLDS AND FLU AND IS SPENDING MORE TIME AT HIS CALIFORNIA HOME LORD HANSON WHO AT 71 IS QUITE FIT SPENDS THREE TO FOUR MONTHS A YEAR IN PALM SPRINGS CALIF AT THE LAST ANNUAL MEETING ACCORDING TO MR CLARKE LORD HANSON SAID HE AND LORD WHITE WOULD EVENTUALLY JUST FADE AWAY AND THEY ARE IN FACT DAY BY DAY FADING AWAY 9312060103 931206 BUSINESS BRIEF ANDERSEN GROUP INC CELLULAR TELEPHONE INTEREST IS TO BE SOLD TO CENTENNIAL ANDERSEN GROUP INC BLOOMFIELD CONN SAID IT SIGNED A LETTER OF INTENT TO SELL A NORTH CAROLINA CELLULAR TELEPHONE PROPERTY TO CENTENNIAL CELLULAR CORP FOR 5 MILLION CASH AND 107 MILLION OF CENTENNIAL CLASS A COMMON STOCK ANDERSEN WHICH HOLDS A 34 INTEREST IN THE PROPERTY SAID THAT THE CASH PORTION WILL BE USED TO PAY EXISTING OBLIGATIONS IT SAID IT EXPECTS TO RECEIVE ABOUT 34 MILLION IN STOCK WITH THE REMAINDER GOING TO PRIVATE INVESTORS WHO ARE ITS PARTNERS ANDERSEN SAID IT ORIGINALLY PAID 21 MILLION FOR ITS STAKE AND WILL RECORD A ONETIME AFTERTAX GAIN ON THE SALE IT DECLINED TO ESTIMATE THE SIZE OF THE GAIN PENDING CLOSING OF THE TRANSACTION ANDERSEN A DIVERSIFIED COMPANY HAS BUSINESSES IN DENTAL ALLOYS ELECTRONIC PARTS ULTRASONIC CLEANERS AND VIDEO EFFECTS EQUIPMENT CENTENNIAL IS BASED IN NEW CANAAN CONN 9312060102 931206 BUSINESS BRIEF IMPERIAL CHEMICAL INDUSTRIES PLC BRITISH CONCERN IS IN TALKS ON SELLING FIBERITE BUSINESS BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC SAID FRIDAY THAT IT IS IN PRELIMINARY TALKS THAT COULD LEAD TO THE SALE OF ITS USBASED FIBERITE COMPOSITES BUSINESS THE CHEMICAL COMPANY DIDN'T IDENTIFY THE OTHER PARTY IN THE TALKS NOR DID IT DISCUSS THE POSSIBLE TIMING OR PRICE DETAILS IN THE EVENT OF A SALE BEING CONCLUDED IT WOULD BE ACCOUNTED FOR AS THE DISPOSAL OF A DISCONTINUED BUSINESS AND WOULD INVOLVE A WRITEOFF OF ABOUT 100 MILLION 148 MILLION INCLUDING 77 MILLION OF PURCHASED GOODWILL ICI SAID ICI SAID THE FIBERITE COMPOSITES BUSINESS BASED IN TEMPE ARIZ HAD AN OPERATING LOSS OF 10 MILLION IN 1992 ON SALES OF 94 MILLION 9312060101 931206 BANAMEX AGREES TO FORM ALLIANCE WITH SWISS BANK SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY BANCO NACIONAL DE MEXICO SA MEXICO'S LARGEST BANK AGREED TO FORM A STRATEGIC ALLIANCE WITH SWISS BANK CORP TO PURSUE DERIVATIVE PRODUCTS ON MEXICAN SHARE ISSUES THE ALLIANCE IS SCHEDULED TO BEGIN OPERATIONS IN THE FIRST QUARTER OF 1994 ACCORDING TO BANAMEX AS THE BANK IS KNOWN BANAMEX ALSO SAID IT WILL FORM AN ALLIANCE WITH BANC ONE OF THE US IN CONSUMERCREDIT PROCESSING SPECIFICALLY IN THE AREA OF CREDIT CARDS SPECIFIC TERMS OF THE ASSOCIATIONS WEREN'T IMMEDIATELY KNOWN THIS IS AN EXAMPLE OF THE BEGINNING OF A TREND OF ASSOCIATIONS BETWEEN MEXICAN AND FOREIGN BANKS THAT IS EXPECTED TO INCREASE UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT SAID RODRIGO QUINTANILLA A MEXICAN BANK ANALYST WITH SOLOMON BROTHERS INC AT PRESENT BANAMEX IS THE ONLY SUCH MEXICAN BANK WITH FOREIGN ALLIANCES BANAMEX IS ALREADY WORKING WITH OHIOBASED BANC ONE IN THE AREA OF MODERNIZING BANAMEX'S COMPUTER AND COMMUNICATIONS SYSTEMS FOR SWISS BANK THE ALLIANCE REPRESENTS ITS FIRST WITH A LATIN AMERICAN FINANCIAL INSTITUTION THE ALLIANCE WILL SEEK TO PROVIDE MORE LIQUIDITY IN AN IMMEDIATE WAY TO THE MEXICAN MARKET IN SUCH AREAS AS OPTIONS DERIVATIVE PRODUCTS AND WARRANTS SAID SWISS BANK'S MEXICAN REPRESENTATIVE WINSTON LACAYO AT PRESENT MEXICO FORBIDS FULLSERVICE BANKING BY FOREIGN BANKS BUT PERMITS THEM TO ACCEPT DEPOSITS AND LEND TO PEOPLE WHO DON'T RESIDE IN MEXICO UNDER NAFTA THERE WILL BE THREE YEARS OF PROTECTION FOR MEXICO'S ONLY RECENTLY PRIVATIZED BANKS AFTER WHICH FOREIGN BANKS WILL BE ALLOWED TO DO BUSINESS THOUGH THEY WILL BE LIMITED IN TERMS OF MARKET SHARE TOGETHER FOREIGNBANK SUBSIDIARIES WON'T BE ALLOWED TO EXCEED 6 OF LOCAL MARKET SHARE WHEN NAFTA TAKES EFFECT IN 1994 GROWING TO 15 BY 2000 ALL LIMITS WILL BE GRADUALLY REMOVED THEREAFTER DUE TO LOCAL CAPITAL REQUIREMENTS THIS WILL LIMIT FOREIGN BANKS' LOAN PORTFOLIOS MEXICAN TREASURY OFFICIALS HAVE SAID THEY EXPECT TO ISSUE LICENSES TO A HANDFUL OF FOREIGN BANKING INSTITUTIONS THIS MONTH MANY MAJOR US BANKS ALREADY STAFF REPRESENTATIVE OFFICES IN MEXICO AMONG FOREIGN BANKS IN MEXICO ONLY CITICORP'S CITIBANK IS PERMITTED TO OPERATE FULLY DUE TO A HISTORICAL ANOMALY CITIBANK ESTABLISHED ITSELF IN MEXICO IN 1929 BEFORE THE PROMULGATION OF MODERN BANKING LEGISLATION FOR THE TIME BEING FOREIGN BANKS ARE ALSO LIMITED IN TERMS OF THEIR OWNERSHIP IN MEXICAN FINANCIAL INSTITUTIONS TO 10 IN BANKS AND 30 IN FINANCIAL HOLDING COMPANIES TO DATE SPANISH BANK BANCO BILBAO VIZCAYA SA IS THE LARGEST SHAREHOLDER IN THE SECTOR WITH A 20 STAKE IN GRUPO FINANCIERO PROBURSA SA GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO HOLDS A 49 STAKE IN GRUPO FINANCIERO SERFIN SA'S SMALL AND LESS RESTRICTIVE LEASING AND FACTORING BUSINESSES THE BANAMEXSWISS BANK ALLIANCE WILL WORK PRIMARILY THROUGH BANAMEX'S BROKERAGE SUBSIDIARY ACCIONES Y VALORES SA ACCIVAL 9312060100 931206 CONSUMERS UNION EXCHIEF OF FINANCE FACES CHARGES NEW YORK A FORMER CHIEF FINANCIAL OFFICER FOR CONSUMERS UNION PUBLISHER OF CONSUMER REPORTS MAGAZINE WAS INDICTED IN FEDERAL COURT IN WHITE PLAINS ON ONE COUNT OF CONSPIRACY AND 12 COUNTS OF MAIL FRAUD THE CHARGES STEM FROM AN ALLEGED SCHEME IN WHICH DAVID W GRANSTON DEMANDED AND RECEIVED ABOUT 100000 IN KICKBACKS FROM BROKERS IN EXCHANGE FOR CONSUMERS UNION PURCHASING GOODS AND SERVICES FROM THE BROKERS MR GRANSTON 56 YEARS OLD WILL BE ARRAIGNED DEC 8 EACH COUNT CARRIES A MAXIMUM SENTENCE OF FIVE YEARS IN JAIL AND A 250000 FINE MR GRANSTON WHO NOW LIVES IN NORTH EAST HARBOR MAINE WAS CHIEF FINANCIAL OFFICER AT CONSUMERS UNION FROM 1983 UNTIL HIS DISMISSAL IN APRIL 1991 HE COULDN'T BE REACHED TO COMMENT 9312060098 931206 BUSINESS BRIEF ASDA GROUP PLC RETAILER'S ALLIED UNIT IS SOLD TO CARPETLAND IN STOCK DEAL BRITISH FOOD RETAILER ASDA GROUP PLC SAID IT SOLD ITS ALLIED CARPET BUSINESS TO CARPETLAND CARPET CENTRES LTD AND HAS SUBSCRIBED FOR 8 MILLION 118 MILLION OF ORDINARY SHARES IN CARPETLAND FOR AN INITIAL 40 STAKE IN THE ENLARGED GROUP THE ENLARGED CARPETLAND BUSINESS WILL BE NAMED ALLIED ASDA SAID THAT TOGETHER THE ALLIEDCARPETLAND OPERATION WILL HAVE 200 STORES AND WILL BE THE UNITED KINGDOM'S LARGEST CARPET RETAILER IT ADDED THAT IT RESERVES THE RIGHT TO INCREASE ITS STAKE TO AS MUCH AS 50 DEPENDING UPON THE REALIZATION VALUE OF CARPETLAND ON A FLOTATION OR TRADE SALE AS PART OF THE TRANSACTION CINVEN LTD IS SUBSCRIBING FOR 5 MILLION OF 125 PREFERENCE SHARES AND ASDA IS SUBSCRIBING FOR 10 MILLION OF 125 REDEEMABLE LOAN STOCK CINVEN IS A MONEY MANAGER THAT INVESTS PENSIONFUND MONEY FOR AMONG OTHERS BRITISH COAL THE MAJORITY SHAREHOLDER IN CARPETLAND CARPETLAND WAS BOUGHT BY ITS MANAGEMENT BACKED BY CINVEN IN AUGUST 1991 9312060097 931206 REED INTERNATIONAL PLANS TO CUT SURPLUS IN ITS PENSION PLAN SPECIAL TO THE WALL STREET JOURNAL LONDON REED INTERNATIONAL PLC THE BRITISH ARM OF ANGLODUTCH GROUP REED ELSEVIER SAID THAT BECAUSE OF CERTAIN TAX CHANGES IN THE UNITED KINGDOM IT PLANS TO REDUCE THE SURPLUS IN ITS PENSION FUND TO NINE MILLION 134 MILLION THIS YEAR FROM 28 MILLION IN 1992 REED SAID THE DECISION TO TRIM THE SURPLUS FOLLOWS A CHANGE IN BRITISH TAX LAW LAST APRIL THAT REDUCED THE TAX CREDIT COMPANIES CAN TAKE THE CUT IN THE CREDIT HAS ADVERSELY AFFECTED THE DIVIDEND INCOME OF MANY BRITISH PENSION FUNDS AND OTHER COMPANIES HAVE TAKEN SIMILAR STEPS TO REDUCE THEIR SURPLUSES EVEN AFTER TAKING INTO ACCOUNT THE IMPACT OF THE LOWER DIVIDEND INCOME THERE IS STILL A VERY SUBSTANTIAL ACTUARIAL SURPLUS IN THE UK PENSION FUND WHICH COVERS REED ELSEVIER'S UKBASED EMPLOYEES SAID NIGEL STAPLETON CHIEF FINANCIAL OFFICER OF REED ELSEVIER REED SAID IT HADN'T MADE ANY EMPLOYER CONTRIBUTIONS TO THE PENSION FUND SINCE 1988 AND THAT THE SURPLUS EVEN AT THE REDUCED LEVEL IS SUFFICIENT ENOUGH TO ALLOW THE COMPANY TO CONTINUE NOT PAYING INTO THE FUND FOR SEVERAL YEARS TO COME REED SAID THE REDUCED SURPLUS WILL BE INCORPORATED IN THE 1993 RESULTS OF REED ELSEVIER'S COMBINED BUSINESS REED ELSEVIER AN INTERNATIONAL PUBLISHING GROUP WAS CREATED IN JANUARY BY THE MERGER OF THE BRITIAN'S REED INTERNATIONAL AND ELSEVIER NV OF THE NETHERLANDS NOTING THAT THERE WILL BE NO ADVERSE CASH FLOW IMPACT FROM THE REDUCTION REED SAID IT ALSO DOESN'T EXPECT ANY IMPACT ON 1993 PROFIT REED SAID THE PRETAX PROFIT CONTRIBUTION FROM THE OFFICIAL AIRLINE GUIDES ACQUISITION COMPLETED IN SEPTEMBER AND A SLIGHT IMPROVEMENT RECENTLY IN TRADING CONDITIONS IN THE BRITAIN AND THE US WOULD ALLOW IT TO MEET PROFIT EXPECTATIONS 9312060096 931206 HEARD ON THE STREET ZOLL MEDICAL IS FACING REGULATORY PROBLEMS OVER ITS DEFIBRILLATORS FDA REPORTS INDICATE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT GOES AROUND COMES AROUND WHICH COULD BE BAD NEWS FOR ZOLL MEDICAL ZOLL MAKES DEFIBRILLATORS ELECTRICPOWERED DEVICES TO RESTART HEARTS IN AN EMERGENCY ITS STOCK SOARED FOR MOST OF 1993 BECAUSE OF A COMPETITOR'S MANUFACTURING PROBLEMS BUT ZOLL ITSELF HAS REGULATORY PROBLEMS ACCORDING TO ASYETUNDISCLOSED INSPECTION REPORTS ON FILE WITH THE FOOD AND DRUG ADMINISTRATION SOME TRADERS BELIEVE THE REPORTS COULD LEAD TO FDA SANCTIONS AGAINST ZOLL SEVERAL FDA INSPECTION REPORTS PROVIDED TO THE WALL STREET JOURNAL SHOW THAT ZOLL BASED IN BURLINGTON MASS HAS REPEATEDLY FAILED TO PROPERLY NOTIFY THE AGENCY ABOUT MALFUNCTIONS WITH ITS DEFIBRILLATORS IN SOME CASES THE FDA PAPERS ASSERT REPORTS FILED ABOUT MALFUNCTIONS WITH ZOLL EQUIPMENT FAILED TO NOTE THAT THE PATIENT HAD DIED OTHER MALFUNCTIONS WEREN'T REPORTED TO THE FDA AT ALL SAY THE INSPECTION REPORTS INCLUDING CASES IN WHICH PATIENTS AND NURSES HAVE BEEN SHOCKED AND BURNED WHILE USING ZOLL DEFIBRILLATORS NASDAQTRADED ZOLL WHICH WENT PUBLIC LAST YEAR AT 10 SOARED THIS YEAR TO A HIGH OF 43 1/4 EVEN AT FRIDAY'S CLOSE OF 29 3/8 DOWN 1 7/8 ZOLL TRADES AT A RICH VALUATION OF 48 TIMES PERSHARE EARNINGS AND EIGHT TIMES BOOK VALUE AMID THE FDA SCRUTINY ZOLL'S PRESIDENT ROLF STUTZ HAS SOLD 36 OR 100000 OF HIS ZOLL SHARES IN RECENT MONTHS INCLUDING 30000 SHARES SOLD AT 35 IN EARLY SEPTEMBER ACCORDING TO REGULATORY FILINGS SOME OTHER OFFICERS ALSO HAVE SOLD SHARES ZOLL SAYS THE SALES AREN'T RELATED TO THE FDA SCRUTINY MR STUTZ'S SALES WERE PART OF A PLAN TO DIVERSIFY HIS HOLDINGS THE COMPANY SAYS IN ONE FDA REPORT DATED MAY 7 1993 AN FDA INSPECTOR NOTED NUMEROUS OCCASIONS FROM DECEMBER 1992 INTO THIS PAST MAY WHEN ZOLL FILED INCOMPLETE REPORTS WITH THE AGENCY ABOUT THE SEVERITY OF MALFUNCTIONS IN THE LATEST REPORT DATED OCT 1 THE AGENCY COMPLAINS THAT ZOLL REPORTED SIX SEPARATE 1993 COMPLAINTS ABOUT ITS DEVICES AS MALFUNCTIONS WHEN IT SHOULD HAVE REPORTED THEM AS DEATHS ALSO THE REPORT SAYS THE FIRM HASN'T TAKEN APPROPRIATE CORRECTIVE ACTION TO ADDRESS DEFIBRILLATOR FAILURES RELATED TO BATTERY PROBLEMS THE COMPANY SAYS THE REPORT IS REFERRING ONLY TO WHETHER ZOLL HAS BEEN PROPERLY INSTRUCTING EMERGENCY WORKERS ON HOW TO CHARGE BATTERIES IN AN INTERVIEW DUANE DESISTO ZOLL'S CHIEF FINANCIAL OFFICER CONFIRMS THE AUTHENTICITY OF THE LATEST FDA REPORT HE SAID I DON'T WANT TO GET DRAWN INTO THE SPECIFICS ALL I CAN SAY IS WE HAVE ADDRESSED ALL THE SPECIFICS OF THE REPORT MR DESISTO SAYS INVESTORS SHOULDN'T PANIC ABOUT WORD OF THE FDA CONCERNS CALLING ROUTINE THE LATEST FDA INSPECTION THAT LED TO THE OCT 1 REPORT THE THING WALL STREET SHOULD KEEP IN MIND IS THAT WE DON'T BELIEVE THERE IS ANY FINANCIAL IMPACT AS A RESULT OF THE LATEST INSPECTION THE BOTTOM LINE IS WE ARE GOING TO COMPLY TRADERS SAY THE PROBLEM IS THAT ZOLL CAN'T BE SURE WHETHER IT'S DOING TOO LITTLE TOO LATE TO AVOID FDA ACTION MR STUTZ THE ZOLL PRESIDENT TOLD THE FDA EARLIER THIS YEAR THAT HIS COMPANY WAS TAKING THE AGENCY'S CONCERNS SERIOUSLY AND WAS DOING ITS BEST TO COMPLY WITH REGULATIONS ANOTHER DEVELOPMENT LARGELY UNNOTICED UP TILL NOW IS THAT RODERICK BOUCHER WHO HAD BEEN ZOLL'S QUALITYASSURANCE DIRECTOR LEFT THE COMPANY IN APRIL ACCORDING TO THE FDA PAPERS MR BOUCHER WAS THE MAIN PERSON AT ZOLL WHO RESPONDED TO THE AGENCY'S CONCERNS ABOUT REPORTING DEFICIENCES REACHED FRIDAY MR BOUCHER SAID HIS LEAVING ZOLL WAS A VOLUNTARY SITUATION I'D BEEN THERE SINCE THE START OF THE COMPANY AND WAS READY FOR ANOTHER OPPORTUNITY MR BOUCHER REFERRED FDARELATED QUESTIONS TO ZOLL BUT HE DID SUGGEST THAT THE FDA PROBLEMS MERELY REFLECT MISUNDERSTANDINGS BETWEEN ZOLL AND THE FDA OVER JUST WHAT WAS REQUIRED TO BE REPORTED THE COMPANY HAS BROUGHT IN A NEW QUALITYASSURANCE MANAGER AND HAS BEEFED UP THE AREA MR DESISTO SAYS AS ALREADY REPORTED THE FDA HAS BEEN CRACKING DOWN ON PROBLEMS WITH SEVERAL DEFIBRILLATOR MAKERS INCLUDING ELI LILLY'S PHYSIOCONTROL UNIT AND VENTRITEX WHICH ALSO HAS SEEN ACCELERATED INSIDER SELLING UNTIL NOW ZOLL STOCK HAD LARGELY AVOIDED REGULATORYRELATED PLUNGES THE STOCK DID TUMBLE LAST JUNE WHEN ZOLL SAID IT WOULD RECALL 100 TO 200 DEFIBRILLATORS OVER A MALFUNCTIONING PART IT WOUND UP RECALLING MORE THAN THAT BUT NOT A FINANCIALLY SIGNIFICANT AMOUNT ZOLL SAYS 9312060095 931206 BUSINESS BRIEF CHEVRON CORP OIL COMPANY IS CONSIDERING REFINERY SALE TO LINCOLNSHIRE CHEVRON CORP SAN FRANCISCO SAID IT IS IN SUBSTANTIVE DISCUSSIONS TO SELL ITS REFINERY IN PHILADELPHIA TO LINCOLNSHIRE MANAGEMENT INC A PRIVATE INVESTMENT GROUP IN NEW YORK IN MAY CHEVRON PUT ITS PHILADELPHIA AND PORT ARTHUR TEXAS REFINERIES ON THE BLOCK AS PART OF A MAJOR RESTRUCTURING TO PARE ITS US REFINING OPERATIONS THE OIL COMPANY SAID IT HOPES TO REACH A DEFINITIVE AGREEMENT WITH LINCOLNSHIRE BEFORE THE END OF JANUARY IT DIDN'T DISCLOSE TERMS IF AN AGREEMENT IS COMPLETED LINCOLNSHIRE SAID IT PLANS TO CONTINUE OPERATING THE REFINERY AS AN INDEPENDENT MERCHANT REFINERY SERVING CUSTOMERS IN THE NORTHEASTERN US AND USING THE REFINERY'S PRESENT MANAGEMENT TEAM AND WORK FORCE CHEVRON HASN'T ANNOUNCED A BUYER FOR THE PORT ARTHUR REFINERY 9312060094 931206 LAW LEGAL BEAT US APPEALS COURT RULINGS SHOW ROLE OF PANEL MAKEUP IN OUTCOMES BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LUCK WAS A LIBERAL IN THE US APPEALS COURT HERE LAST MONTH TWO OF THE BIGGEST CASES OF THE YEAR INVOLVING GAY SOLDIERS AND BROADCAST INDECENCY RULES FELL BY LOTTERY TO A PANEL OF THE APPEALS COURT'S THREE REMAINING CARTER APPOINTEES IN ITS RULINGS THE PANEL DECLARED UNCONSTITUTIONAL THE PENTAGON'S BAN ON HOMOSEXUALS SERVING IN THE MILITARY AND STRUCK DOWN GOVERNMENT REGULATIONS AIMED AT INDECENT PROGRAMMING IN BOTH INSTANCES THE DECISIONS WERE HAILED AS POTENTIAL LANDMARK RULINGS AND RECEIVED MAJOR NATIONAL ATTENTION YET TO SOME OBSERVERS THE DECISIONS HAD AS MUCH TO DO WITH THE JUDGES WHO HEARD THE CASES AS WITH THE LEGAL ARGUMENTS THAT WERE MADE THE RULINGS HAVE FOCUSED RENEWED ATTENTION ON HOW COURTS ASSIGN PARTICULAR JUDGES TO HEAR CASES AND ON THE IMPORTANCE OF THE LUCK OF THE DRAW IN DETERMINING HOW CASES ARE DECIDED AS IS CUSTOMARY THE CASES WERE RANDOMLY ASSIGNED BUT THE PANEL THAT HEARD THEM ENDED UP BEING COMPRISED OF LIBERAL JUDGES ONLY A FACT ATTORNEYS AND OTHERS CONCEDE COULD EASILY HAVE AFFECTED THE OUTCOME THE PANELISTS WERE ABNER MIKVA PATRICIA WALD AND HARRY T EDWARDS THE RESULTS MIGHT WELL HAVE BEEN DIFFERENT IF THE PANELS HAD BEEN DOMINATED BY THE CONSERVATIVE WING OF THE COURT SAYS ALAN MORRISON A SENIOR ATTORNEY AT THE PUBLIC CITIZEN LITIGATION GROUP IT WAS CERTAINLY FORTUITOUS A STRANGE COINCIDENCE ADDS WILLIAM SCHWARZER DIRECTOR OF THE FEDERAL JUDICIAL CENTER THE RESEARCH ARM OF THE FEDERAL COURTS IN RECENT YEARS COURTS THROUGHOUT THE COUNTRY HAVE SET UP INCREASINGLY ELABORATE PROCEDURES THROUGH THE USE OF COMPUTERS TO AVOID THE APPEARANCE OF BIAS IN ASSIGNING CASES BUT AMONG POLITICALLY DIVERSE COURTS AND THE COURT HERE IS RENOWNED FOR THE IDEOLOGICAL SPLITS AMONG ITS MEMBERS THERE REMAINS THE CHANCE THAT THE SELECTION PROCESS WILL HAVE A SIGNIFICANT BEARING ON HOW CASES ARE DECIDED INDEED WHILE MOST ATTORNEYS BELIEVE THAT JUDGES LEAVE A PERSONAL MARK ON THEIR CASES TO SOME DEGREE THE COURT HERE PROBABLY HAS AN OPPORTUNITY TO DO SO MORE FREQUENTLY FOR ONE THING THE COURT'S DOCKET IS UNUSUAL IN THAT MOST OF ITS CASES INVOLVE THE FEDERAL GOVERNMENT CONFRONTING THE COURT WITH THE KINDS OF DIFFICULT PUBLICPOLICY QUESTIONS THAT TEND TO REQUIRE JUDGES TO EXERCISE THEIR OWN DISCRETION THE COURT ALSO HAS A HISTORY OF BEING BITTERLY DIVIDED ALONG POLITICAL LINES WITH A LONG LIBERAL TRADITION THAT WAS LARGELY EVISCERATED DURING THE REAGAN AND BUSH YEARS REPUBLICAN JUDGES NOW HOLD EIGHT OF THE 11 SEATS ON THE COURT THE DC CIRCUIT IS PROBABLY THE GREATEST EXAMPLE OF HOW THE SELECTION OF A PANEL CAN BE OUTCOME DETERMINATIVE FOR A CASE SAYS JONATHAN TURLEY A LAW PROFESSOR AT GEORGE WASHINGTON UNIVERSITY IT IS OFTEN VERY DIFFICULT TO EXPLAIN TO CLIENTS THAT THEIR LEGAL CASE DEPENDS SUBSTANTIALLY ON THE PANEL OF JUDGES THAT WILL HEAR IT HE ADDS CERTAINLY THE IDEA OF RANDOM JUSTICE CUTS BOTH WAYS CONSERVATIVELED PANELS HERE HAVE WRITTEN OPINIONS FOR THE COURT FOR INSTANCE REVERSING THE CONVICTION OF FORMER NATIONAL SECURITY AIDE OLIVER NORTH IN THE IRANCONTRA SCANDAL AND STRIKING DOWN THE INDEPENDENTCOUNSEL LAW THAT WAS USED TO PROSECUTE OTHER FORMER MEMBERS OF THE REAGAN ADMINISTRATION THE SUPREME COURT LATER REVIVED THE LAW SIMILARLY A CONSERVATIVE PANEL INCLUDING THENCIRCUIT JUDGE ANTONIN SCALIA ONCE REINSTATED A MAJOR LIBEL VERDICT AGAINST THE WASHINGTON POST ALTHOUGH THE FULL APPEALS COURT LATER OVERRULED THE PANEL LITIGANTS IN GENERAL CAN ASK THE FULL COURT TO RECONSIDER A PANEL'S DECISION OPENING UP AN IMPORTANT SAFETY VALVE IN EXTREME CASES YET BECAUSE OF GROWING CASELOADS COURTS ARE INCREASINGLY DISINCLINED TO GRANT SUCH REQUESTS ADDING GREATER IMPORTANCE TO PANEL DECISIONS THE JUDGES THEMSELVES HAVE TAKEN EXCEPTION TO THE IDEA THAT POLITICS AT ALL INVADES THE DECISIONMAKING PROCESS JUDGE EDWARDS ONCE ATTACKED AS MYTHS THE IDEA THAT JUDGES' PERSONAL VIEWS AFFECT HOW CASES ARE DECIDED INDEED VARIOUS STUDIES HAVE SHOWN THAT THE VAST MAJORITY OF APPEALSCOURT CASES ARE DECIDED UNANIMOUSLY IN PART BECAUSE THE ISSUES INVOLVED ARE FAIRLY NARROW AND TECHNICAL MOREOVER THE JUDGES DON'T ALWAYS VOTE ALONG PARTY LINES JUDGE WALD RECENTLY JOINED AN OPINION OF THE COURT HERE HOLDING THAT THE FEDERAL ELECTION COMMISSION ACTED UNCONSTITUTIONALLY IN A CASE AGAINST THE NATIONAL RIFLE ASSOCIATION DESPITE JOINING IN THE RECENT GAYRIGHTS CASE JUDGE MIKVA ONCE HELD THAT A PENTAGON RULE AGAINST ENLISTED MEN WEARING YARMULKES WHILE IN UNIFORM DIDN'T VIOLATE RELIGIOUS FREEDOM TIMOTHY DYK A LAWYER AT JONES DAY REAVIS & POGUE WHO ARGUED THE RECENT BROADCASTING CASE BEFORE THE APPEALS COURT MAINTAINS THAT EVEN MORE CONSERVATIVE PANELS OF THE COURT HAVE INDICATED IN PREVIOUS DECISIONS THAT THEY WOULD HAVE SUPPORTED THE MAJORITY VIEW HE SAYS THAT IT IS A MISTAKE TO SUGGEST THAT THE OUTCOME OF THAT CASE TURNED ON WHETHER IT WAS A LIBERAL OR CONSERVATIVE PANEL AND THAT PANEL COMPOSITION IN GENERAL PROBABLY MAKES LESS DIFFERENCE THAN MOST OF US THINK IT DOES YET EVEN THE APPEALS COURT ITSELF SEEMS TO ACKNOWLEDGE THAT THE SELECTION OF JUDGES CAN AFFECT THE OUTCOME GIVING ATTORNEYS MONTHS OF ADVANCE NOTICE WHO WILL BE HEARING THE CASES SO THEY CAN TAILOR THEIR ARGUMENTS OR REASSESS THEIR POSITIONS ON SETTLEMENT THAT'S A DISTINCTLY DIFFERENT TACK FROM SOME OTHER APPEALS COURTS AROUND THE COUNTRY WHICH DON'T REVEAL THE NAMES OF JUDGES UNTIL THE DAY OF ARGUMENT SAYS STEPHEN SALTZBURG ANOTHER GEORGE WASHINGTON PROFESSOR THEY PREFER TO HAVE THE ILLUSION THAT IN NO CASES SHOULD THE PARTIES OR THE LAWYERS TREAT THE PANEL AS BEING IMPORTANT SAYS MR SALTZBURG IN AN EXPANSIVE APPLICATION OF A CRIMINALLAW DOCTRINE A FEDERAL APPEALS COURT UPHELD A MURDER CONVICTION OF A RAPIST WHOSE VICTIM DIED A MONTH AFTER THE CRIME IN THE CASE THE 85YEAROLD VICTIM WAS HOSPITALIZED AND THEN TREATED IN AN ILLINOIS NURSING HOME SHE BECAME DEPRESSED AND STOPPED EATING FORCING THE NURSING HOME TO FEED HER THROUGH A SYRINGE AFTER SOME FOOD LODGED IN HER THROAT SHE ASPHYXIATED AND DIED DEATH WAS THE LAST LINK IN A SERIES OF EVENTS THAT BEGAN WITH THE ASSAULT SAID JUDGE RICHARD A POSNER WRITING FOR AN APPEALSCOURT PANEL IN CHICAGO LAST MONTH A CALIFORNIA STATE COURT ALLOWED A MURDER PROSECUTION IN A VERY SIMILAR CASE AND MANY CRIMINALLAW SPECIALISTS CALLED THAT DECISION A STRETCH OF THE SOCALLED FELONYMURDER RULE THE RULE IS A SPECIAL PRINCIPLE OF HOMICIDE LAW THAT KICKS IN WHEN SOMEONE DIES ACCIDENTALLY DURING THE COMMISSION OF A CRIME SUCH DEATHS THOUGH UNINTENTIONAL ARE CONSIDERED FIRSTDEGREE MURDER IN THE CLASSIC EXAMPLE AN ARMED ROBBER WHO ACCIDENTALLY SHOOTS A BYSTANDER WOULD BE CHARGED WITH FIRSTDEGREE MURDER RATHER THAN THE LESSER CHARGE OF MANSLAUGHTER THE PROPOSITION THAT RAPING AND BEATING AN 85YEAROLD WOMAN CREATES A RISK OF DEATH REQUIRES NO DISCUSSION JUDGE POSNER WROTE IN UPHOLDING THE RAPIST'S 60YEAR SENTENCE OF COURSE THERE ARE DANGERS IN INFERRING CONSEQUENCE FROM SEQUENCE BUT THEY ARE SLIGHT WHEN AS IN THIS CASE THE EVENT NOT ONLY FOLLOWS THE ACT CLOSELY IN TIME BUT IS THE KIND OF EVENT FREQUENTLY PRODUCED BY THE KIND OF ACT ATTORNEYS FOR THE RAPIST HAD ARGUED AMONG OTHER THINGS THAT THE NURSE WHO FED THE WOMAN WAS NEGLIGENT THE RULING SETS NO LIMIT AS FAR AS I'M CONCERNED TO THE THEORIES THAT PROSECUTORS CAN CONCOCT SAID ROBERT T MARKOWSKI AN ATTORNEY AT CHICAGO LAW FIRM JENNER & BLOCK FOR DEFENDANT RANDY L BRACKETT IT BECOMES A REAL GUESSING GAME WITH REGARD TO WHAT CAUSED WHAT AND WHAT WOULD HAVE HAPPENED OTHERWISE HE SAID KEENE CORP FILED FOR BANKRUPTCYLAW PROTECTION FRIDAY TWO DAYS AFTER A FEDERAL APPEALS COURT SCUTTLED ITS ATTEMPT TO RESOLVE THOUSANDS OF ASBESTOS CLAIMS THROUGH A MANDATORY SETTLEMENT CLASS ACTION THE FORMER ASBESTOS MANUFACTURER SAID IT FILED FOR PROTECTION IN NEW YORK FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE TO PRESERVE ITS ASSETS AFTER THE SECOND US CIRCUIT COURT OF APPEALS RULED WEDNESDAY ATTORNEYS FOR SOME ASBESTOS VICTIMS BEGAN TO COLLECT ON BONDS BACKING UP MILLIONS OF DOLLARS IN PREVIOUS VERDICTS THEY MADE A RUN ON THE BANK SAID STUART RICKERSON KEENE'S GENERAL COUNSEL KEENE HAS ABOUT 112 MILLION IN ASSETS AND 54 MILLION IN LIABILITIES MAINLY ITS ESTIMATED POTENTIAL LIABILITY FOR ASBESTOS CLAIMS THE COMPANY'S ONLY OPERATING SUBSIDIARY REINHOLD INDUSTRIES INC WHICH MAKES ADVANCED COMPOSITE MATERIALS FOR AEROSPACE DEFENSE AND COMMERCIAL USES ISN'T PART OF THE BANKRUPTCYCOURT FILING KEENE SAID THOUGH A SMALL PLAYER AMONG THE COMPANIES EMBROILED IN ASBESTOS LAWSUITS KEENE AND ITS CHAIRMAN GLENN BAILEY HAD TAKEN A HIGHPROFILE ROLE IN CAMPAIGNING FOR CHANGES IN THE COURTS AND CONGRESS TO RESOLVE THE LITIGATION ASBESTOS ONCE WIDELY USED IN INSULATION AND SHIPBUILDING CAN CAUSE CANCER AND LUNG DISEASE YEARS AFTER EXPOSURE KEENE CURRENTLY FACES ABOUT 100000 PERSONALINJURY CLAIMS MAINLY FROM PEOPLE EXPOSED AT WORKSITES AND ITS LIMITEDFUND SETTLEMENT PROPOSAL WOULD HAVE RESOLVED THOSE SUITS AS WELL AS FUTURE CLAIMS THE SETTLEMENT ATTEMPT HAD BEEN APPROVED BY US DISTRICT JUDGE JACK B WEINSTEIN ONE OF THE LEADERS IN FEDERAL COURTS' EFFORTS TO RESOLVE THE MOUNTING ASBESTOS LAWSUITS THE APPEALS COURT HOWEVER REBUFFED KEENE'S APPROACH AND SUGGESTED THE COMPANY'S ATTEMPTS SHOULD BE MADE THROUGH BANKRUPTCY COURT RATHER THAN A MANDATORY CLASS ACTION THE RULING WAS SEEN AS A SETBACK FOR INNOVATIVE EFFORTS TO SETTLE MASSIVE ASBESTOS CLAIMS AND IT RAISES QUESTIONS ABOUT HOW OTHER ATTEMPTS WILL FARE ON APPEAL VICTIMS' ATTORNEYS WHO HAD OPPOSED THE KEENE PLAN AS UNFAIR SAID BANKRUPTCYPROCEEDINGS WOULD ENSURE THAT ASBESTOS CLAIMANTS ARE TREATED AS FAIRLY AS OTHER CREDITORS IT WAS THE APPROPRIATE THING TO DO TO RESOLVE THE CREDITORS' LIABILITIES SAID FREDERICK M BARON OF DALLAS LAW FIRM BARON & BUDD OTHER LAWYERS HOWEVER AGREED WITH KEENE THAT BANKRUPTCY PROCEEDINGS COULD EAT UP MUCH OF THE ASSETS THAT OTHERWISE WOULD GO TO ASBESTOS CLAIMANTS ANYTIME THERE'S A BANKRUPTCY PROCEEDING YOU HAVE A MUCH HIGHER AMOUNT OF TRANSACTION COSTS SAID PERRY WEITZ OF NEW YORK LAW FIRM WEITZ & LUXENBERG WHO REPRESENTED CURRENT ASBESTOS CLAIMANTS IN THE KEENE CLASS ACTION KEENE HAS ASKED THE ENTIRE APPEALS COURT TO RECONSIDER LAST WEEK'S RULING WHICH WAS BY A THREEJUDGE PANEL THAT REQUEST IS PENDING NOTED DAVID VLADECK WAS NAMED DIRECTOR OF THE PUBLIC CITIZEN LITIGATION GROUP SUCCEEDING ALAN MORRISON MR MORRISON 55 YEARS OLD HAD BEEN DIRECTOR OF THE PUBLICINTEREST FIRM SINCE FOUNDING IT WITH CONSUMER ADVOCATE RALPH NADER IN 1972 HE WILL CONTINUE AS A SENIOR ATTORNEY AT THE FIRM MR VLADECK 42 HAS BEEN AN ATTORNEY WITH THE GROUP SINCE 1977 WADE LAMBERT AND JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9312060093 931206 INTERNATIONAL WASHINGTON INSIGHT SURGING ARMS RACE IN ASIA FORCES RIFT BETWEEN THE WHITE HOUSE AND CONGRESS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE EMERGING ARMS RACE IN ASIA IS CREATING A RIFT BETWEEN CONGRESS AND THE CLINTON ADMINISTRATION THE ADMINISTRATION WANTS MORE FLEXIBILITY IN SEEKING TO CURB THE SPREAD OF WEAPONS OF MASS DESTRUCTION OFFICIALS SAY THE PRESIDENT HAS A GREATER CHANCE OF SUCCESS IF HE IS FREE TO DICKER WITH VARIOUS COUNTRIES ON A REGIONAL BASIS BUT CONGRESS FAVORS PUNISHING NUCLEAR MISCREANTS ONEBYONE DENYING THEM US AID OR ACCESS TO US MARKETS HOUSE AND SENATE ARMSPROLIFERATION EXPERTS FEAR THAT GIVING THE DOMESTICALLY ORIENTED MR CLINTON FLEXIBILITY WOULD LEAD HIM TO INCREASE HIGHTECH EXPORTS NOT TO PURSUE NONPROLIFERATION ONE THING IS CLEAR THE US HAS LITTLE TIME LEFT BEFORE SEVERAL ASIAN COUNTRIES HAVE WEAPONS OF MASS DESTRUCTION AND THE MEANS TO DELIVER THEM IF WE LET THIS THING CONTINUE TO SPIN OUT OF CONTROL ON THE BASIS THAT THE POLITICS HERE IS TOO SENSITIVE TO DEAL WITH THEN WE'RE GOING TO BLOW A REALLY IMPORTANT OPPORTUNITY WARNS HENRY SOKOLSKI WHO WRESTLED WITH THIS PROBLEM AS A PENTAGON OFFICIAL IN THE BUSH ADMINISTRATION WE'VE GOT THREETOFIVE YEARS HERE THE EASIER THING TO DO IS DEAL WITH THIS SITUATION BEFORE IT HAPPENS RIGHT NOW CHINA AND INDIA ARE THE LEADERS OF THE ASIAN ARMS RACE BOTH ARE BUILDING SPACE PROGRAMS WITH BARGAINBASEMENT DEALS FOR MISSILE TECHNOLOGY FROM RUSSIA SPACE TECHNOLOGY IS DIFFICULT TO CONTROL BECAUSE THE UPPERSTAGE ROCKET MOTORS EXOTIC GUIDANCE SYSTEMS AND RELATED TECHNOLOGY NEEDED TO LAUNCH COMMUNICATIONS SATELLITES AND OTHER PEACEFUL HARDWARE ARE ALSO THE KEYS TO SUPERACCURATE BALLISTIC MISSILES AND MISSILES WITH MULTIPLE WARHEADS RECENT INDICATIONS THAT CHINA IS DEVELOPING SUCH WEAPONS WHICH HAVE THE POWER TO HIT AND DESTROY ALMOST ANY KNOWN DEFENSE INSTALLATION ARE UNSETTLING PARTICULARLY IN ASIA INDIA WHICH IS BELIEVED TO HAVE CONTINUING CONTACT WITH RUSSIAN WEAPONS SCIENTISTS WILL BE UNDER GREAT PRESSURE TO RESPOND THE SUBORDINATE PLAYERS IN THE REGION PAKISTAN AND TAIWAN ALSO WILL BE DRIVEN TO EXPAND THEIR WEAPONS PROGRAMS AS THE RACE GATHERS MOMENTUM JAPAN SOUTH KOREA AND INDONESIA WILL FIND IT INCREASINGLY HARD TO STAY ON THE SIDELINES THESE ARE NOW ALL POWERS WITH THE MONEY AND THE INDUSTRIAL BASES TO MAKE THEIR PART OF THE WORLD PROFOUNDLY MORE DANGEROUS AS THE BUSH ADMINISTRATION LEARNED RATHER PAINFULLY FROM SADDAM HUSSEIN NATIONS PLANNING WEAPONS OF MASS DESTRUCTION DO MUCH OF THEIR SHOPPING IN THE US HIDING THEIR REAL GOALS BEHIND THE CLAIMS THEY HAVE THE BEST OF INTENTIONS ADMINISTRATION OFFICIALS SEE AN OPPORTUNITY TO PURSUE A MORE FLEXIBLE APPROACH WITH INDIA AND PAKISTAN BOTH COUNTRIES RECENTLY HAVE INFORMED THE US THAT THEY MIGHT ENGAGE IN A NEW ARMSCONTROL WALTZ IF THE OTHER SIDE TAKES THE FIRST STEP WE MAY HAVE A NEW OPENING HERE SAYS A CLINTON ADMINISTRATION OFFICIAL WE WANT TO SEE IN THE MONTHS AHEAD IF WE CAN EXPLOIT IT BUT YOU CAN'T DO IT IF THE LAWS ARE COUCHED IN NARROW ARMSCONTROL OBJECTIVES THE NEW FLEXIBLE APPROACH IS BURIED IN DRAFT LANGUAGE FOR FOREIGN AID REFORM IT ALSO WILL APPEAR IN A PENDING REVISION OF THE EXPORT ADMINISTRATION ACT BOTH ARE LIKELY TO GRATE ON PROLIFERATION EXPERTS IN CONGRESS WHO LEARNED FROM IRAQ THAT THE PROMISE OF NEW EXPORTS CAN TEMPT PRESIDENTS TO BEND THE RULES I WILL NOT ALLOW MY AMENDMENT TO BE JETTISONED UNDER THE GUISE OF FOREIGNAID REFORM GROUSED SEN LARRY PRESSLER R SD IN A RECENT LETTER TO PRESIDENT CLINTON THE PRESSLER AMENDMENT CUT OFF AID TO PAKISTAN IN 1990 UNLESS THE PRESIDENT COULD DECLARE THAT THE COUNTRY WASN'T MAKING A NUCLEAR WEAPON BOTH THE ADMINISTRATION'S AND CONGRESS' METHODS MAY HAVE VIRTUES AND DRAWBACKS BUT THERE IS LITTLE TIME LEFT TO ARGUE MORE HIGHTECHNOLOGY CUSTOMERS ARE ON THEIR WAY PAKISTAN IS ABOUT TO TEST THE CLINTON APPROACH WITH A CHARM CAMPAIGN AIMED AT RESTARTING A 14 BILLION DEAL STALLED BY THE PRESSLER AMENDMENT FOR 60 F16S THERE ARE BIG SUGARPLUMS HERE INCLUDING THE PROMISE OF MORE WORK FOR THE FIGHTER PLANE'S 4000 SUBCONTRACTORS BUT THE DOWNSIDE IS THAT THE F16 PROBABLY WOULD BE THE DELIVERY VEHICLE FOR PAKISTAN'S NUCLEAR WEAPONS SELLING THE INGREDIENTS OF CHEMICAL BIOLOGICAL AND NUCLEAR WEAPONS AND THE VEHICLES TO CARRY THEM IS A BUSINESS THAT CAN'T BE MEASURED IN MERE DOLLARS AND JOBS IT COULD ALSO COST MILLIONS OF LIVES AND CREATE A WORLD THAT WOULD MAKE THE BALANCE OF TERROR OF THE OLD COLD WAR LOOK LIKE THE GOOD OLD DAYS WHEN PROBLEMS WERE SIMPLE WHAT THE US NEEDS NOW IS A NANCY REAGAN AMENDMENT A POLITICAL MECHANISM TO JUST SAY NO AND TO GIVE THE LEVERAGE AND THE DETERMINATION TO ELICIT THE SAME RESPONSE FROM ALLIES BOTH NEW AND OLD 9312060091 931206 AS MORE PREGNANT WOMEN WORK BIAS COMPLAINTS RISE BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL PREGNANCYDISCRIMINATION COMPLAINTS TO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION HIT A SIXYEAR HIGH REFLECTING THE IMPACT OF WIDESPREAD LAYOFFS AND MOUNTING WORKPLACE TENSION OVER SEX ROLES AFTER DECLINING FOR SEVERAL YEARS COMPLAINTS TO THE EEOC ABOUT ALLEGED PREGNANCYRELATED FIRINGS INCREASED IN EACH OF THE PAST TWO YEARS ACCORDING TO THE AGENCY'S LATEST DATA PREGNANCYBIAS FILINGS ROSE 27 TO 3543 IN THE YEAR ENDED SEPT 30 THE HIGHEST LEVEL SINCE 1987 THAT FOLLOWED AN 11 INCREASE IN THE PREVIOUS YEAR PROPELLING THE RISE IS A COMBINATION OF THE CONTINUING PERSISTENCE OF SEX DISCRIMINATION IN THE ECONOMY AND A HEIGHTENING PUBLIC AWARENESS NOT ONLY THAT SEX DISCRIMINATION IS ILLEGAL BUT THAT IT IS POSSIBLE TO DO SOMETHING ABOUT IT SAYS JOHN C HENDRICKSON THE EEOC'S REGIONAL ATTORNEY IN CHICAGO LANDMARK EVENTS SUCH AS THE 1991 CLARENCE THOMASANITA HILL CONGRESSIONAL HEARINGS ON SEXUAL HARASSMENT AS WELL AS THE 1993 PASSAGE OF THE FEDERAL FAMILY AND MEDICAL LEAVE ACT GUARANTEEING PREGNANCY LEAVE HAVE LEFT WOMEN MORE AWARE OF THEIR RIGHTS JUST AS A WAVE OF CORPORATE DOWNSIZING HAS ALSO MADE THEM MORE VULNERABLE TO FIRING A BABY BOOMLET IN THE WORKPLACE ALSO HELPS ACCOUNT FOR THE RISE THOUGH FERTILITY RATES GENERALLY REMAIN FLAT THE PROPORTION OF WOMEN WHO HAVE GIVEN BIRTH IN THE PAST YEAR WHO ARE ALSO EMPLOYED ROSE TO 54 IN 1992 FROM 51 IN 1988 CONTINUING A STEADY INCREASE FROM ONLY 31 IN 1976 CENSUS BUREAU DATA SHOW WITH MORE WORKING WOMEN GETTING PREGNANT THERE IS A BIGGER GROUP OF WOMEN TO DISCRIMINATE AGAINST SAYS PAMELA THOMASON THE EEOC'S REGIONAL ATTORNEY IN LOS ANGELES THE CIVIL RIGHTS ACT OF 1991 INCREASED THE INCENTIVE TO FILE SEXBIAS LAWSUITS BY GIVING PLAINTIFFS THE RIGHT TO COMPENSATORY AND PUNITIVE DAMAGES AS WELL AS TO A JURY TRIAL AN OPTION THAT HEIGHTENS PLAINTIFFS' CHANCES OF VICTORY A 1988 RAND CORP STUDY IN CALIFORNIA WHERE STATE LAW HAS LONG ENTITLED WRONGFULTERMINATION PLAINTIFFS TO A JURY TRIAL SHOWED THAT JURIES FAVORED PLAINTIFFS IN TWOTHIRDS OF 120 WRONGFULFIRING SUITS BETWEEN 1980 AND 1986 INDEED JURIES HAVE TURNED IN SOME EYEPOPPING VERDICTS IN WHAT MAY BE THE LARGEST PREGNANCYDISCRIMINATION AWARD TO AN INDIVIDUAL SO FAR A STATECOURT JURY IN SAN JOSE CALIF LAST MONTH AWARDED 27 MILLION INCLUDING 15 MILLION IN PUNITIVE DAMAGES TO LANA AMBRUSTER A 28YEAROLD FORMER CLAIMS ADJUSTOR FOR CALIFORNIA CASUALTY MANAGEMENT CO IN SAN MATEO CALIF MS AMBRUSTER CLAIMED HER BOSS THREATENED TO FIRE HER IF SHE RETURNED FROM HER HONEYMOON PREGNANT THEN PLACED HER ON WRITTEN PROBATION TWO MONTHS LATER WHEN SHE TOLD HIM SHE WAS EXPECTING A CHILD SAYS STEVEN REAVES AN OAKLAND CALIF ATTORNEY FOR MS AMBRUSTER SHE WAS FIRED TWO MONTHS LATER CALIFORNIA CASUALTY CONTENDED IN THE TRIAL THAT MS AMBRUSTER'S PERFORMANCE HAD BEEN UNSATISFACTORY FOR A SIGNIFICANT LENGTH OF TIME BEFORE HER PREGNANCY AND THAT SHE HAD BEEN WARNED ABOUT IT THE COMPANY SAID IT HAS STRONG NONDISCRIMINATION POLICIES AND A GOOD TRACK RECORD ON PREGNANCY LEAVE IT ALSO SAID THE ALLEGEDLY DISCRIMINATORY REMARKS BY MS AMBRUSTER'S MANAGER WERE TAKEN LIGHTLY BY OTHER EMPLOYEES CALIFORNIA CASUALTY HAS SEVERAL WEEKS TO APPEAL THE VERDICT OR TO SEEK A NEW TRIAL JOB DISCRIMINATION COMPLAINTS GENERALLY DECLINED IN THE LATE 1980S DUE TO LAX ENFORCEMENT BY THE EEOC AND A SERIES OF SUPREME COURT DECISIONS THAT MADE SUCH LAWSUITS HARDER TO WIN ATTORNEYS SAY THE LATEST GENERATION OF EMPLOYED WOMEN IS MORE LIKELY TO TAKE AMBIGUOUS OR POTENTIALLY DISCRIMINATORY REMARKS SERIOUSLY THE 20 AND 30YEAROLDS WHO ARE HAVING CHILDREN TODAY GREW UP IN AN ENVIRONMENT WHERE THEY EXPECTED TO BE TREATED EQUALLY SAYS KATHLEEN LUCAS A SAN FRANCISCO EMPLOYMENTLAW ATTORNEY DEA K KNAPP 28 A FORMER ACCOUNT MANAGER IN THE TAMPA FLA OFFICE OF CPS SYSTEMS INC A PRIVATE SOFTWARE CONCERN BASED IN DALLAS ALLEGES IN A SEVENPAGE AFFIDAVIT TO THE EEOC THAT HER BOSS MADE REMARKS IN HER PRESENCE LIKE DEA IS NOT ALLOWED TO GET PREGNANT WHEN SHE TOLD HER BOSS SHE WAS PREGNANT SHE SAYS HE CRITICIZED HER TIMING IN CONCEIVING A CHILD WHO WOULD BE BORN DURING THE SECOND QUARTER THE COMPANY'S BUSIEST PERIOD OF THE YEAR SHE ALSO ALLEGES HER BOSS TOLD HER HE WOULDN'T HIRE ANY MORE MARRIED WOMEN OF CHILDBEARING AGE MS KNAPP WAS FIRED LAST JUNE SHORTLY AFTER SHE RETURNED FROM MATERNITY LEAVE RONALD BROWN A DALLAS ATTORNEY FOR CPS DECLINES SPECIFIC COMMENT ON MS KNAPP'S ASSERTIONS ABOUT HER BOSS BUT SAYS THE COMPANY CAN REFUTE THEM ALL MS KNAPP WAS FIRED FOR DOCUMENTED PERFORMANCE PROBLEMS THAT BEGAN MORE THAN A YEAR BEFORE HER PREGNANCY LEAVE MR BROWN SAYS CPS HAS STRONG ANTIDISCRIMINATION POLICIES AND MANY WOMEN EMPLOYEES HAVE SUCCESSFULLY TAKEN PREGNANCY LEAVE WITHOUT CONSEQUENCES HE SAYS SOME LAWYERS SAY DOWNSIZING ALSO PLAYS A ROLE AMID INTENSE PRESSURE TO CUT COSTS SOME BOSSES MAY NOT EVEN BE CONSCIOUS THAT THEY'RE LESS WILLING TO ACCOMMODATE UNUSUAL CIRCUMSTANCES AND IN THE PROCESS DISCRIMINATE AGAINST PREGNANT EMPLOYEES THOMAS DICKSON A TAMPA FLA ATTORNEY ADDS THAT IN MANY LAYOFFS WORKERS ARE CUT WHO MAY BE A LITTLE MORE EXPENSIVE TO HAVE ON THE PAYROLL AND THE PREGNANT EMPLOYEE IS CERTAINLY ONE OF THOSE ALSO DRIVING THE TREND IS THE GROWING ROLE OF WOMEN'S WAGES IN SUPPORTING MANY FAMILIES LABOR DEPARTMENT DATA SHOW THAT MEN LOST NINE TIMES MORE JOBS THAN WOMEN IN THE 199091 RECESSION AND GAINED ONLY ABOUT ONETHIRD AS MANY JOBS AS WOMEN SINCE THEN AS A RESULT MS LUCAS SAYS SHE SEES MORE COUPLES INCLUDING MANY WITH HIGHINCOME JOBS WHO ARE WILLING TO SUE OVER ALLEGED BIAS TO PROTECT THE FAMILY'S ECONOMIC FUTURE FOR MANY WOMEN A JOB LOST DURING PREGNANCY IS THE LAST ONE THEY WILL FIND FOR A LONG TIME MAUREEN ST LAURENT 33 A FORMER BOOKKEEPER FOR A NOWDEFUNCT WARD HILL MASS MANUFACTURER SAYS THAT SHORTLY AFTER SHE TOLD HER BOSSES SHE WAS PREGNANT IN 1990 THEY OFFERED HER A DEMOTION TO A TYPISTRECEPTIONIST'S JOB EVEN THOUGH SHE COULDN'T TYPE AND FIRED HER WHEN SHE REFUSED IT SHE THEN FILED AN EEOC COMPLAINT HER LAWSUIT IS PENDING FOUR MONTHS PREGNANT SHE SET OUT TO FIND ANOTHER JOB BUT AS I GOT LARGER THE INTERVIEWS GOT SHORTER I'D WALK IN THE DOOR AND THE INTERVIEWER'S EYES WOULD GET WIDE THEN SHRINK DOWN AGAIN I KNEW THEY WEREN'T HIRING ME BECAUSE I WAS PREGNANT BUT I COULDN'T DO ANYTHING ABOUT IT AFTER HER BABY WAS BORN MS ST LAURENT GOT CALLS FOR TEMPORARY JOBS BUT COULDN'T FIND CHILD CARE ON SHORT NOTICE DISCOURAGED SHE AND HER HUSBAND HAVE BORROWED MONEY FROM THEIR PARENTS AND EXPANDED THEIR CREDITCARD DEBT TO GET BY ON HER HUSBAND'S INCOME AS A FEDERAL EMPLOYEE 9312060090 931206 ASSETS IN LATIN AMERICA SPARK INTEREST BANKERS SEE VALUE IN OFFERING REPACKAGED SECURITIES BY TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK LATIN AMERICA'S INCREASINGLY PROSPEROUS CONSUMERS ARE GENERATING LARGE NEW POOLS OF CAPITAL REPRESENTING AUTO LOAN PAYMENTS CREDITCARD RECEIPTS AND TOLLROAD FARES WHETTING THE APPETITE OF INVESTMENT BANKERS HERE WHO WOULD LIKE TO REPACKAGE THEM FOR YIELDSTARVED US INVESTORS WALL STREET ALREADY HAS TARGETED THESE LOANS RECEIPTS AND OTHER CURRENCYDENOMINATED INCOME STREAMS AS COLLATERAL FOR A NEW WAVE OF HIGHYIELDING ASSETBACKED SECURITIES NEXT YEAR BANKERS LOVE THE IDEA BECAUSE THE WELL OF MORE CONVENTIONAL ASSETBACKED DEALS IS BEGINNING TO DRY UP AND THEIR ENTHUSIASM HAS GROWN IN RECENT WEEKS FOLLOWING AN IMPRESSIVE OFFERING OF BONDS BACKED BY TOLLS PAID BY DRIVERS ALONG A NEW HIGHWAY IN MEXICO POTENTIAL OBSTACLES MUST BE NAVIGATED HOWEVER BEFORE THIS REVVEDUP NEW MARKET TAKES OFF FOREMOST IS THE PROBLEM OF LONGTERM CURRENCY RISK MOREOVER MANY MARKET PARTICIPANTS BELIEVE THESE POOLS OF DOMESTIC ASSETS ARE STILL TOO SHALLOW TO FLOAT A LARGE NUMBER OF DEALS SOON TO CREATE AN ASSETBACKED SECURITY BANKERS REDIRECT PAYMENTS FROM CREDIT CARDS AUTO LOANS TRADE RECEIVABLES OR OTHER ASSETS INTO A TRUST CALLED A SPECIAL PURPOSE VEHICLE OR SPV BECAUSE THESE PAYMENTS ARE RELIABLE BANKERS CAN USE THEM AS COLLATERAL TO BACK A NEW OFFERING OF BONDS CALLED ASSETBACKEDS THE SPV CHANNELS THE LOAN PAYMENTS TO BONDHOLDERS AS INTEREST AND PRINCIPAL IN SIX YEARS THE VOLUME OF LATIN AMERICAN ASSETBACKED ISSUANCE HAS GROWN TO ABOUT 5 BILLION BUT LATELY THE FLOW OF DOLLARDENOMINATED DEALS HAS SLOWED WITH MEXICO AND ARGENTINA CLOSE TO FULL INVESTMENTGRADE STATUS COMPANIES THERE CAN ISSUE BONDS DIRECTLY TO FOREIGN INVESTORS AT HISTORICALLY LOW INTEREST RATES MAKING TRADITIONAL ASSETBACKED DEALS AN EXPENSIVE ALTERNATIVE TO FILL THIS VOID BANKERS ARE HOPING TO SPUR SECURITIZATION OF TRUE ASSETS OR POOLS OF LOCAL CAPITAL SUCH AS RESIDENTIAL MORTGAGES AUTO LOANS AND PERHAPS EVEN PAYMENTS FOR CREDITCARD PURCHASES ALL GENERATED BY LATIN AMERICAN CONSUMERS AND DENOMINATED IN LOCAL CURRENCIES SALOMON BROTHERS BROKE THE ICE IN EARLY NOVEMBER WITH THE TRIBASA TOLL ROAD DEAL A WELLSUBSCRIBED PRIVATEPLACEMENT OFFERING OF 18YEAR SECURITIES BACKED BY PESO TOLLS PAID BY DRIVERS ALONG A NEW HIGHWAY IN MEXICO THE OFFERING DESPITE 105 COUPON EASILY COULD HAVE FLOUNDERED IT WAS LAUNCHED JUST DAYS BEFORE BANCO DE MEXICO LET THE PESO SLIP BELOW ITS CUSTOMARY INTERVENTION LEVEL JARRING INTERNATIONAL MARKETS AND RAISING UNCERTAINTY ABOUT THE LONGTERM PESODOLLAR EXCHANGE RATE YET INVESTOR DEMAND FOR THE BONDS REMAINED STRONG AS BUYERS SHRUGGED OFF A 21 DEPRECIATION OF THE PESO THAT WEEK TOLLROAD ASSETS ARE CHEAP SAID WAYNE D LYSKI A PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT CORP YOU GET A GOOD RUNNING YIELD AND THE DEBT WILL BE A STRONG PERFORMER IN BOTH UP AND DOWN MARKETS USING CONSERVATIVE MEASURES OF FUTURE TRAFFIC FLOW AND POSSIBLE PESO DEVALUATION SCENARIOS ALLIANCE DETERMINED THAT INVESTORS WERE PROTECTED FROM DEFAULT EVEN IF THE MEXICAN PESO WERE DEVALUED BY 35 MORE TOLLROAD DEALS ARE PLANNED BANKERS SAID AND MEXICO HAS TARGETED NEW TYPES OF LOCAL RECEIVABLES TO SECURITIZE NEXT YEAR TOPPING THE LIST ARE PAYMENTS FOR SEWAGE WATER PURIFICATION AND WATERDELIVERY SERVICES THE SUCCESS OF THE TRIBASA OFFERING AND A SIMILAR DEAL BY LEHMAN BROTHERS LAST YEAR SURPRISED SOME OF WALL STREET'S SAVIEST CORPORATE FINANCIERS ARGENTINA MEANWHILE HAS AN EDGE OVER ITS LATIN AMERICAN NEIGHBORS THAT COULD LEAD TO A SURGE IN SECURITIZATION OF LOCAL REVENUE STREAMS NEXT YEAR BANKERS SAID THE COUNTRY ALSO IS SHAKING OFF YEARS OF INEFFICIENT HIGHCOST AUTOLOAN FINANCING THAT FORCED ARGENTINES TO PAY FOR AUTOS SOMETIMES YEARS BEFORE RECEIVING THEIR CARS RECENTLY LOWER INTEREST RATES AND AN IMPROVED ECONOMY HAS FUELED A BOOM IN ARGENTINA'S AUTO INDUSTRY RAISING THE NEED FOR MORE INNOVATIVE APPROACHES TO AUTOLOAN FINANCING THAT SET THE STAGE FOR ARGENTINA'S FIRST AUTOLOANBACKED DEAL ANNOUNCED IN LONDON LAST MONTH THE 50 MILLION THREEYEAR ISSUE WAS OFFERED JOINTLY IN THE EUROBOND AND US 144A MARKETS BY CITIBANK INTERNATIONAL PRICED AT A SPREAD OF 424 BASIS POINTS ABOVE THE TREASURY'S ONEYEAR BILL WHILE THE MARKET FOR LATIN AMERICAN CONSUMERLENDING ASSETS THAT COULD BE SECURITIZED HAS BEEN GROWING IT STILL ISN'T RIPE ENOUGH IN MANY COUNTRIES TO SUPPORT THE KIND OF ASSETBACKED BUSINESS GENERATED IN THE US CITIBANK'S PORTFOLIO OF AUTO LOANS IN ARGENTINA TOTALS ONLY 140 MILLION NOTED OUSSAMA A NASR VICE PRESIDENT IN INTERNATIONAL CORPORATE FINANCE AT CITICORP FINANCIAL MARKETS INC IN CONTRAST THE SIZE OF ASSETBACKED ISSUES BY THE BIG THREE US AUTOMAKERS AVERAGE 1 BILLION BUT WHAT CITIBANK'S PORTFOLIO LACKS IN DEPTH IS MORE THAN MADE UP IN QUALITY NASR ADDED WHICH COULD HELP BOOST ISSUANCE DOWN THE ROAD IF OTHER OBSTACLES BLOCKING INCREASED LATIN AMERICAN ASSETBACKED ISSUANCE SEEM FAMILIAR IT'S BECAUSE MANY ARE THE SAME ONES THAT HAVE BEEN THWARTING STRUCTURED FINANCE DEALS IN EUROPE FOR YEARS EUROPE AND LATIN AMERICA UNLIKE THE UNITED STATES DO NOT HAVE THE UNIFORM COMMERCIAL CODES TAX STATUTES AND OTHER FEATURES ESSENTIAL TO THIS MARKET SAID CITICORP'S MR NASR YOU ESSENTIALLY HAVE TO REINVENT THE WHEEL PESODENOMINATED ASSETBACKED DEALS ALSO REQUIRE MORE LEGAL ACCOUNTING AND CREDIT SUPPORT WORK TO COMPENSATE FOR THE ADDITIONAL FOREIGN EXCHANGE RISK SAID ANDREW QUALE AN ATTORNEY WITH SIDLEY & AUSTIN WHO HAS HELPED STRUCTURE SEVERAL DEALS IN THE PAST MOREOVER MEXICO ARGENTINA AND CHILE MAY NEED MORE TIME TO SHOW THEY HAVE EMERGED FOR GOOD FROM YEARS OF LOW GROWTH AND HIGH INFLATION POTENTIAL INVESTORS SAID SO UNTIL CONSUMERLOAN MARKETS MATURE LATIN AMERICAN FINANCIAL GROUPS BANKS AND INSURANCE COMPANIES WILL CONTINUE TO LEAN TOWARD SECURITIZING DOLLARDENOMINATED INCOME STREAMS FROM TRADE RECEIVABLES FACTOR RECEIVABLES AND EXPORTS SUCH AS PETROLEUM FUEL OIL COPPER ALUMINUM AND STEEL 9312060089 931206 QUAKER STATE CHARGED WITH WASTE VIOLATION IN FEDERAL LAWSUIT PHILADELPHIA THE JUSTICE DEPARTMENT FILED A FEDERAL LAWSUIT IN HANCOCK COUNTY WVA CHARGING QUAKER STATE CORP WITH VIOLATING STATE AND FEDERAL HAZARDOUSWASTE LAWS AT THE COMPANY'S NEWELL WVA OIL REFINERY THE AMOUNT SOUGHT IN THE SUIT WASN'T DISCLOSED AND AN ENVIRONMENTAL PROTECTION AGENCY SPOKESMAN WOULD SAY ONLY THAT IT WAS SUBSTANTIAL QUAKER STATE OIL SAID IT WILL VIGOROUSLY CONTEST THE LAWSUIT CHARGING THE JUSTICE AND EPA DEPARTMENTS WITH GROSS MISREPRESENTATION OF THE FACTS ALTHOUGH COMPANY OFFICIALS HAVEN'T YET SEEN THE SUIT GROUNDWATER MONITORING DATA AND CONSULTANT REPORTS INDICATE THAT DRINKING WATER SUPPLIES HAVEN'T BEEN AFFECTED MOREOVER QUAKER STATE SAID IT HAD TWO YEARS AGO VOLUNTARILY INITIATED ACTION TO STUDY AND RECOVER LOCALIZED POCKETS OF PETROLEUM ON GROUNDWATER AT THE REFINERY THE EPA SIMULTANEOUSLY ISSUED A UNILATERAL ORDER FOR THE COMPANY TO BEGIN A COMPREHENSIVE CLEANUP OF ALL HAZARDOUSWASTE RELEASES AT THE FACILITY INCLUDING MORE THAN ONE FOOT OF FLOATING PETROLEUM IN THE GROUNDWATER AT THE SITE THE JUSTICE DEPARTMENT COMPLAINT CHARGES THAT QUAKER STATE WHICH IS BASED IN OIL CITY PA ILLEGALLY OPERATED FOUR INGROUND WASTE BASINS WITHOUT A PERMIT RESIDENTIAL HOUSING IS LOCATED ONETENTH OF A MILE FROM THE SITE THOUGH NO DETERMINATION WAS MADE AS TO WHETHER DRINKING WATER WAS CONTAMINATED 9312060088 931206 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS THE 52WEEK PERCENTAGE CHANGE IN STOCK MARKET PRICE PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN CCHICAGO TTORONTO 9312060087 931206 REGIONAL RESILIENCE TUMBLING OIL PRICES WON'T BATTER TEXAS THE WAY '86 CRASH DID ECONOMY HAS DIVERSIFIED FIRMS ARE LEAN AND GAS PLAYS A LARGER ROLE NOW FINGERS ARE CROSSED AT 15 BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON IS IT 1986 FOR THE OIL PATCH ALL OVER AGAIN THE PAST WEEKS' DROP IN OIL PRICES TO FIVEYEAR LOWS IS EERILY REMINISCENT OF THE BEGINNING OF 1986'S PRECIPITOUS PLUNGE WHEN CRASHING PRICES TOOK EVERYTHING THEY TOUCHED DOWN WITH THEM SKYSCRAPERS IN THIS CITY THE NATION'S FOURTH LARGEST EMPTIED SO QUICKLY THEY BECAME KNOWN AS SEETHROUGHS NEWLY BUILT SUBDIVISIONS TURNED OVERNIGHT INTO GHOST TOWNS BANKS COLLAPSED AND TEXAS' OIL EXPLORATION BUSINESS LOST 131000 JOBS QUITE ABRUPTLY THE GREAT TEXAS BOOM WENT BUST BUT BASED ON LOCAL ACCOUNTS FROM THE EXECUTIVE SUITE TO MAIN STREET AND ALL THE WAY TO WALL STREET THINGS ARE CONSIDERABLY DIFFERENT THIS TIME AROUND THE OIL INDUSTRY HAS RETOOLED TO ADAPT MORE SWIFTLY TO GYRATING PRICES THE OVERALL ECONOMY OF THE NATION'S THIRD MOST POPULOUS STATE HAS DIVERSIFIED AWAY FROM ENERGY AND EVERYONE HAS BEEN FORCED TO DIM THAT TEXASSIZED OPTIMISM IN FACT AT LEAST ONE ECONOMIST PROJECTS THAT THE TEXAS ECONOMY ACTUALLY WILL BENEFIT FROM OIL PRICES IN THE 15ABARREL RANGE MUCH AS THE BROADER US ECONOMY IS EXPECTED TO GAIN FROM THINGS LIKE CHEAPER GASOLINE AND HEATING OIL MORE SIGNIFICANT TO HOUSTON'S ENERGY INDUSTRY AND THE REST OF THE STATE'S THOUGH IS THAT NATURALGAS EXPLORATION MAY HAVE SURPASSED OIL IN IMPORTANCE TO THE ECONOMY SAYS HOUSTON MAYOR BOB LANIER SO FAR GAS PRICES HAVEN'T PLUNGED LIKE OIL'S MORE THAN IN THE PAST THE CITY HAS BECOME A HOME OFFICE TO BIG ENERGY COMPANIES THAT INCREASINGLY ARE SPENDING MOST OF THEIR EXPLORATION DOLLARS OVERSEAS THESE DAYS HOUSTON IS LESS A TEXAS DRILLER'S AND WILDCATTER'S HAVEN IN ADDITION THE 1986 COLLAPSE PROVIDED TEXANS WITH A DOSE OF HUMILITY THAT SHOULD SAND AWAY ANY RESIDUAL RELIANCE ON PERIODIC OIL BOOMS EXECUTIVES HAVE GOTTEN RID OF THE ATTITUDE THAT WE'RE FAT AND HAPPY AND WE'RE GOING TO MAKE A LOT OF MONEY 'CAUSE GOD MADE US SMART MR LANIER SAYS THAT'S GOOD BECAUSE GOD DIDN'T MAKE US THAT SMART AND NOW EVERYBODY KIND OF HAS TO WORK FOR A LIVING THERE'S PAIN BUT NO PANIC IN THE OFFICE OF RAYMOND PLANK THE 72YEAROLD FOUNDER AND CHAIRMAN OF ONE OF THIS CITY'S LARGEST OIL COMPANIES APACHE CORP ON HIS WALL HANGS A POSTER THAT IS EMBLEMATIC OF THE SLIMMEDDOWN SURVIVORS OF THE 1986 CRASH IT SHOWS TWO HANDS WRINGING THE LAST DROP OF CRUDE POSSIBLE FROM AN OILY RAG THROUGH ACQUISITIONS AND DRILLING APACHE HAS RAISED ITS OIL AND GAS RESERVES SEVENFOLD IN THE PAST DECADE EVEN AS US RESERVES DWINDLE BUT AT THE SAME TIME ITS PAYROLL HAS SHRUNK TO 1055 PEOPLE FROM 1265 MOST OF OUR INDUSTRY HAS SHAPED UP FINANCIALLY MR PLANK SAYS AND NOBODY BUT NOBODY HAS RISKED GETTING FLABBY AGAIN IN THE MID1980S THE COUNTRY'S BIGGEST OIL COMPANY EXXON CORP BASED IN IRVING TEXAS SLASHED MORE THAN 40000 JOBS NOW WITH 95000 EMPLOYEES EXXON HAS ITS LOWEST HEAD COUNT SINCE 1924 WITH THAT MANY OILINDUSTRY JOBS LONG GONE BUSINESSES THROUGHOUT THE OIL PATCH SIMPLY HAVE FOUND OTHER CUSTOMERS FAMED BOOTMAKER ROCKY CARROLL OF HOUSTON ONCE CATERED PREDOMINANTLY TO STRIKEITRICH OIL MEN SEEKING OUT HIS 1000PLUS CUSTOMMADE OSTRICH AND ALLIGATOR BOOTS NOW HE SAYS HE IS TOO BUSY TO NOTICE THAT OIL PRICES HAVE DROPPED HE IS STITCHING TOGETHER SEVERAL DOZEN NEW ORDERS FROM TWO HOSPITALS A SOFTDRINK COMPANY AND A CHEVY DEALER TODAY'S SHARPLY LOWER OIL PRICES COULD PROVE A WASH FOR THE TEXAS ECONOMY STRIKING FOR THE STATE THAT BUILT ITSELF ON THE BACK OF WILDCATTERS IT HAS DIVERSIFIED SIGNIFICANTLY SINCE 1986 SAYS JARED HAZLETON DIRECTOR OF THE CENTER FOR BUSINESS AND ECONOMIC ANALYSIS AT TEXAS A&M UNIVERSITY IN COLLEGE STATION OIL PRICES ARE MORE IMPORTANT TO US AS CONSUMERS THAN AS PRODUCERS HE SAYS TEXANS BENEFIT LIKE EVERYONE ELSE WHEN LOWER CRUDE PRICES BRING LOWER PRICES TO THE GASOLINE PUMP BUT THE STATE ECONOMY GETS AN ADDED BENEFIT FROM LESS COSTLY CRUDE BECAUSE TEXAS IS HOST TO THE NATION'S LARGEST CONCENTRATION OF REFINERIES AND PETROCHEMICAL PLANTS WHICH BUY OIL AND TURN IT INTO PRODUCTS BASED ON HIS COMPUTER MODELS MR HAZLETON SAYS THAT A DROP OF ANOTHER FEW DOLLARS A BARREL ACTUALLY COULD BE GOOD FOR THE STATE CLEARLY SOMETHING DIFFERENT IS GOING ON AT THE HEIGHT OF THE OIL BOOM IN 1981 THE TEXAS OIL AND GAS INDUSTRY ACCOUNTED FOR FULLY ONEQUARTER OF THE GROSS STATE PRODUCT AND AN EVEN HIGHER 28 OF TEXAS' TAX REVENUE TODAY OIL MAKES UP LESS THAN 12 OF THE STATE'S ECONOMY AND BRINGS IN LESS THAN 7 OF THE TAXES IN HOUSTON THE NATION'S OIL CAPITAL AND THE BIG CITY MOST HURT BY THE 1986 CRASH THE OIL EXPLORATION PORTION OF THE ECONOMY CLIMBED AS HIGH AS 68 NOW IT'S 42 THAT 1986 SCENARIO WAS AN ENTIRELY DIFFERENT SITUATION SAYS TAMMY LESTER A TAX ANALYST IN THE STATE COMPTROLLER'S OFFICE PERSONAL INCOME IN TEXAS GREW 41 IN 1992 HALF A PERCENTAGE POINT AHEAD OF THE REST OF THE COUNTRY MOST ECONOMISTS BELIEVE INCOME GROWTH AGAIN WILL EXCEED THE NATIONAL AVERAGE THIS YEAR CHRISTMAS RETAIL SALES ARE EXPECTED TO RISE ABOUT 65 FROM LAST YEAR ACCORDING TO A WALL STREET JOURNAL SURVEY OF THE STATE'S ECONOMISTS AND HOME PRICES IN MUCH OF TEXAS ARE RISING NOW THAT THE OVERSUPPLY HAS WITHERED AWAY THE MOST STRIKING CHANGE CAN BE SEEN IN THE FORTUNES OF GLOBAL MARINE INC A BETTHERANCH COMPANY THAT LEASES OFFSHORE DRILLING RIGS IN THE GULF OF MEXICO AND AROUND THE WORLD WEEKS BEFORE GLOBAL MARINE FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN EARLY 1986 ITS DEBT SOARED TO 12 BILLION OUR DEBT SERVICE AT THAT TIME WAS 20 MILLION A MONTH SAYS DAVID HERASIMCHUK VICE PRESIDENT OF MARKET DEVELOPMENT NOW IT'S 30 MILLION A YEAR HE SAYS AND TOTAL DEBT HAS SHRUNK TO 225 MILLION THIS ISN'T TO SAY THE PLUNGE IN OIL PRICES WON'T INJURE THE INDUSTRY BUT IT WON'T BE CRIPPLING HE ADDS ALAN STRUTH CHIEF ECONOMIST FOR PHILLIPS PETROLEUM CO IN BARTLESVILLE OKLA SAYS HE WAS PULLED INTO A MANAGEMENTCOMMITTEE MEETING LAST WEEK TO EXPLAIN THE PLUNGE IT'S BEEN A LONG TORTUOUS DECLINE THAT BEGAN WAY BACK IN MARCH HE TOLD PHILLIPS EXECUTIVES PRICES THIS YEAR PEAKED AT 2114 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE AND THEY HAVE FALLEN 29 SINCE THEN FRIDAY THE SPOT PRICE CLOSED AT 1497 UP TWO CENTS ALMOST HALF THE DECLINE HAS COME SINCE OCTOBER THE DROP ACCELERATED AFTER THE LATENOVEMBER MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IN VIENNA THE OIL MINISTERS WERE PRESENTED WITH DATA SHOWING THERE WAS TOO MUCH OIL AVAILABLE IN THE WORLD SURPRISING BOTH THE INDUSTRY AND WORLD FINANCIAL MARKETS THEY AGREED TO DO NOTHING NOW IT'S A 5050 BET THAT WE'RE GOING TO BREAK 1250 SAYS MR STRUTH IN A VIEW THAT ECHOES THE BEARISH SENTIMENT OF THE INDUSTRY AND MANY OIL TRADERS ADDS ROBERT MEHALL A SENIOR VICE PRESIDENT OF DIAMOND SHAMROCK CORP WE'RE ENTERING INTO AN ERA OF THE NEXT YEAR OR TWO WHERE WE'LL HAVE WEAK CRUDE PRICES DIAMOND SHAMROCK A REFINER AND MARKETER BASED IN SAN ANTONIO IS AN EXAMPLE OF A TEXAS OIL COMPANY THAT LIKES LOWER CRUDE PRICES IT BUYS 200000 BARRELS OF THE STUFF A DAY MR MEHALL SAYS THAT AS CRUDE PRICES HAVE FALLEN PROFIT MARGINS AT THE SERVICESTATION PUMP HAVE RANGED FROM 13 CENTS TO 16 CENTS A GALLON SEVERAL PENNIES BETTER THAN NORMAL THAT'S BECAUSE DIAMOND SHAMROCK AND OTHER REFINERMARKETERS HAVE KEPT RETAIL GASOLINE PRICES FROM FALLING AS SWIFTLY AS WHOLESALE PRICES IN ADDITION LOWER FUEL PRICES CAN BOOST THE ECONOMY AND INCREASE DEMAND FOR GASOLINE MR MEHALL SAYS EVEN A COMPANY LIKE TEXACO INC A PRODUCER OF 730000 BARRELS OF CRUDE DAILY AROUND THE WORLD ISN'T BATTERED BY LOWER PRICES TEXACO BUYS AN EQUAL AMOUNT OF OIL DAILY AT THE CURRENT LOW COST TO FEED ITS REFINERIES SAYS ALFRED DECRANE CHAIRMAN THE COST OF OUR RAW MATERIALS IS GOING DOWN SO THERE ARE SOME OFFSETS HE SAYS WHILE THE 29 PRICE PLUNGE THIS YEAR IS STEEP EQUIVALENT IN PERCENTAGE TERMS TO A 1074POINT DROP IN THE DOW JONES INDUSTRIAL AVERAGE IT ISN'T AS SEVERE AS 1986 WHEN PERBARREL PRICES FELL MORE THAN 58 BRIEFLY MOVING INTO SINGLE DIGITS BERNARD PICCHI A NEW YORK OIL ANALYST AT KIDDER PEABODY & CO SAYS OF THE PRICE SLIDE THIS IS NO CATASTROPHE SMELLING A BUYING OPPORTUNITY HE HAS RERECOMMENDED SOME OIL STOCKS IN A REPORT ISSUED DEC 1 HE TITLED ONE SECTION JUST LIKE 1986 DON'T BET ON IT THAT YEAR SAUDI ARABIA FLOODED THE MARKET WITH OIL IN AN ATTEMPT TO REGAIN MARKET SHARE THE KINGDOM HAD LOST DURING THE PREVIOUS FIVE YEARS WHEN IT GOT WHAT IT WANTED SAUDI ARABIA CURTAILED OIL SALES AND PRICES DOUBLED TO NEARLY 18 BY THE END OF THE YEAR THOUGH NOT BEFORE SLAMDUNKING THE OIL PATCH ECONOMY BEFORE THIS LATEST PRICE FALL OPEC'S MINISTERS ALREADY HAD CUT PRODUCTION EARLIER IN THE YEAR BROUGHT WARDAMAGED KUWAIT BACK INTO THE FOLD AND FIGURED THE GROUP HAD DONE ENOUGH BUT MR PICCHI SAYS THE MINISTERS NOW FACE AN OVERSUPPLY PROBLEM EQUALLY CAUSED BY INCREASED OPEC PRODUCTION AND BY OIL ON THE MARKET FROM SUCH AREAS AS THE NORTH SEA YEMEN COLOMBIA AND A HANDFUL OF OTHER SPOTS THE MARKET ALSO CAN'T PREDICT THE LEVEL OF FUTURE RUSSIAN OIL EXPORTS NOR A TIMETABLE FOR LIFTING THE EMBARGO ON IRAQI OIL SALES WHAT 15ABARREL OIL MEANS FOR OIL COMPANIES LIKE APACHE IS HARD BUT NOT LETHAL TIMES SINCE THE END OF SUMMER APACHE'S STOCK HAS PLUNGED ABOUT 11 A SHARE EQUIVALENT TO 670 MILLION OR ONETHIRD OF ITS MARKET CAPITALIZATION MR PLANK THE CHAIRMAN SAYS HE IS REACTING TO THE PRICE PLUNGE THE SAME WAY A DRIVER ON A MOUNTAIN ROAD WOULD TO AN AVALANCHE I WANT TO STOP THE CAR ON DEC 1 HE CANCELED PLANS TO LEASE THREE MORE FLOORS IN APACHE'S HOUSTON HEADQUARTERS BUILDING IN THE ELEVATOR HE TOLD THE COMPANY'S PRESIDENT WILLIAM JOHNSON TO COME UP WITH ALTERNATIVE BUDGETS FOR 1994 THAT INCLUDE THE POSSIBILITY OF CONTINUED 15 CRUDE AND EVEN LOWER PRICES AN HOUR LATER HE RAN A MEETING IN WHICH EXECUTIVES DISCUSSED POSSIBLY ACQUIRING TWO OIL FIRMS THAT MAY NOT SURVIVE PAIN AND SUFFERING FOR SOMEBODY ELSE REPRESENT OPPORTUNITY FOR US HE SAYS APACHE'S GROWTH HAS COME IN LARGE PART FROM ACQUISITIONS THAT HAVEN'T ADDED MUCH TO ITS OWN COST STRUCTURE WHEN IT BOUGHT 511 MILLION OF OIL AND GAS FIELDS FROM AMOCO CORP IN JULY 1991 APACHE RETAINED JUST 130 OF THE 700 AMOCO EMPLOYEES WHO RAN THE FIELDS AFTER ITS 125 MILLION PURCHASE THIS YEAR FROM HALLHOUSTON OIL CO APACHE KEPT NO ONE SUCH LEANNESS SHOWS ONE REASON OIL COMPANIES' EFFECT ON THE REGIONAL ECONOMY HAS LESSENED AND WHY THEY CAN WEATHER LOW PRICES BETTER BUT IF OIL PRICES WERE TO DROP TO UNEXPECTED LEVELS AND ESPECIALLY IF THEY DRAGGED NATURALGAS PRICES DOWN WITH THEM IT WOULD BE ANOTHER STORY THE INDUSTRY HAS POSITIONED ITSELF TO SURVIVE WITH OIL PRICES OF 15 TO 18 A BARREL AND GAS PRICES OF AT LEAST 150 TO 2 A THOUSAND CUBIC FEET SAYS VICTOR BURK OF ARTHUR ANDERSEN & CO COMPANIES HAVE LAID OFF SO MANY PEOPLE ALREADY BUT THEY'LL PROBABLY HAVE TO AGAIN IF PRICES FALL BELOW THOSE RANGES FOR A SUSTAINED PERIOD HE BELIEVES MANY COMPANIES ALREADY ARE PUTTING CAPITALSPENDING PLANS UNDER THE MICROSCOPE THROUGH MUCH OF THE YEAR NATURALGAS PRICES HAVE MOVED INDEPENDENTLY OF OIL BUT IN THE PAST WEEK THEY HAVE SLID A LITTLE SETTLING FRIDAY AT 215 UP 18 CENTS IN LARGE PART BECAUSE GAS COMPETES DIRECTLY WITH OIL FOR SOME USES THEY HAVE HELD UP IN NO SMALL MEASURE BECAUSE WINTER IS TO NATURAL GAS WHAT THE SUMMER DRIVING SEASON IS TO GASOLINE THOMAS DRISCOLL AN OIL ANALYST AT SALOMON BROTHERS INC SAYS WITH CRUDE PRICES AS WEAK AS THEY ARE ONCE THE PEAK WINTER HEATING SEASON ENDS GAS PRICES COULD DROP DRAMATICALLY IF THE DROP LASTS FOR MORE THAN A FEW MONTHS LAYOFFS WILL BEGIN HE EXPECTS MR STRUTH PHILLIPS PETROLEUM'S CHIEF ECONOMIST IS RELUCTANT EVEN TO CONTEMPLATE THE POSSIBILITY OF MORE STAFF CUTS WE'VE GONE THROUGH THE FAT WE'VE GONE THROUGH THE MUSCLE SO WE'D HAVE TO CUT OFF THE LIMBS HE SAYS 9312060086 931206 INTERACTIVE MEDIA LED 1992 GROWTH IN COMMUNICATIONS BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERACTIVE SOFTWARE COMPANIES EMERGED AS ONE OF THE FASTESTGROWING SEGMENTS OF THE COMMUNICATIONS INDUSTRY IN 1992 INVESTMENT BANKING COMPANY VERONIS SUHLER & ASSOCIATES INC NOTED IN ITS ANNUAL INDUSTRY SURVEY THE SURVEY FOR THE FIRST TIME INCLUDED 30 PUBLIC SOFTWARE COMPANIES THAT OFFER CONSUMERS ENTERTAINMENT AND INFORMATION ON AN INTERACTIVE BASIS IN A DIGITAL FORMAT VERONIS SUHLER FOUND THAT THE SECTOR'S REVENUE LAST YEAR ROSE 21 TO 34 BILLION AND OPERATING PROFIT ROSE AN IMPRESSIVE 56 TO 3089 MILLION OVERALL COMMUNICATIONS INDUSTRY OPERATING PROFIT IN 1992 ROSE 18 TO 1809 BILLION AND REVENUE GREW 64 TO 137 BILLION IN 1991 OPERATING PROFIT FELL 48 ON A 58 REVENUE INCREASE THE SURVEY ANALYZED THE RESULTS OF 349 PUBLICLY REPORTING COMPANIES IN 11 CATEGORIES TELEVISION AND RADIO BROADCASTING CABLETV FILMED ENTERTAINMENT RECORDED MUSIC NEWSPAPER PUBLISHING MAGAZINE PUBLISHING BOOK PUBLISHING BUSINESS INFORMATION SERVICES ADVERTISING AGENCIES INTERACTIVE DIGITAL MEDIA AND MISCELLANEOUS COMMUNICATIONS LOOKING AHEAD THE SURVEY FORECASTS THAT SPENDING ON THE COMMUNICATIONS INDUSTRY WILL GROW AT A 61 COMPOUND ANNUAL RATE TO A PROJECTED 26834 BILLION IN 1997 FROM 20002 BILLION IN 1992 THE 1997 PROJECTION COMPRISES ADVERTISER SPENDING OF 11303 BILLION AND CONSUMER SPENDING OF 15532 BILLION VERONIS SUHLER SAYS THE TECHNOLOGY OF THE 1990S WILL BE INTERACTIVE BUT SUCH PRODUCTS WON'T HAVE A MEASURABLE IMPACT ON THE MEDIA UNTIL THE LATTER PART OF THE NEXT FIVE YEARS IT SEES CONSUMER SPENDING RISING AT A 6 COMPOUND ANNUAL RATE DOWN FROM THE 78 RATE OF THE ROUGHLY FIVEYEAR PERIOD ENDED IN MARCH 1993 THE STUDY CALCULATED THAT CONSUMERS SPENT 38197 EACH ON MEDIA IN 1992 UP 55 FROM 1991 IT FORECASTS THAT HOME VIDEO RECORDED MUSIC AND CONSUMER BOOKS WILL LEAD SPENDING OVER THE NEXT FIVE YEARS WHILE FEDERALLY MANDATED ROLLBACKS IN CABLETELEVISION RATES WILL MAKE CABLETV THE SLOWESTGROWING CATEGORY IN THAT PERIOD IN 1992 REVENUE OF PUBLICLY REPORTING CABLE COMPANIES SYSTEMS AND NETWORK OPERATORS GREW 97 TO 18 BILLION WHILE OPERATING INCOME ROSE 22 TO 37 BILLION RADIO AND TELEVISION BOUNCED BACK FROM A SHARP DECLINE IN 1991 WITH REVENUE UP 5 TO 194 BILLION OPERATING PROFIT ROSE 20 TO 245 BILLION 9312060085 931206 OPEC'S OIL OUTPUT DROPS BUT PRICE DECLINE IS FASTER OIL PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS FALLING BUT NOT AS FAST AS OIL PRICES FOR THE FIRST TIME IN YEARS ACCORDING TO OUTSIDE MONITORS OF OPEC THE EXPORTERS NOW ARE FULLY COMPLYING WITH THEIR QUOTAS AS A RESULT THE MONITORS SAID OPEC'S CRUDE OUTPUT IN NOVEMBER WAS DOWN 100000 TO 200000 BARRELS FROM OCTOBER AND SEPTEMBER LEVELS IT IS ACADEMIC NOW BUT FOR THE RECORD OPEC STUCK CLOSE TO ITS PRODUCTION CEILING IN NOVEMBER SAID EDWARD N KRAPELS PRESIDENT OF WASHINGTONBASED ENERGY SECURITY ANALYSIS INC WHICH TRACKS OIL SUPPLIES WORLDWIDE THE NEW PRODUCTION DISCIPLINE OBVIOUSLY HAS COME TOO LATE TO PREVENT OIL PRICES WHICH SETTLED BELOW 15 A BARREL IN THE US LAST WEEK FROM FALLING TO FIVEYEAR LOWS BUT SOME ANALYSTS SAID IT MAY HELP TO EASE THE OIL INDUSTRY'S OVERSUPPLY PROBLEM DURING THE WINTER MONTHS AS OIL DEMAND RISES SEASONALLY 9312060084 931206 ENTERPRISE SMALL HIGHTECH COMPANIES SEEK US LOANS TO SURVIVE TRANSITION FROM SHRINKING MILITARY TO COMMERCIAL MARKET INTENSIFIES NEED BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SOME CAMPAIGN TALK ON HIGHTECH IS COMING BACK TO HAUNT THE CLINTON ADMINISTRATION DURING LAST YEAR'S PRESIDENTIAL CAMPAIGN BILL CLINTON AND ESPECIALLY AL GORE PROMOTED SUPPORT FOR SMALL HIGHTECHNOLOGY COMPANIES AS THE KEY TO CREATING JOBS OF THE FUTURE NOW THESE COMPANIES TIRED OF WAITING ARE PRESSING THE ADMINISTRATION FOR ACTION TO BACK UP THE RHETORIC THEIR PRESSURE MAY BE NUDGING THE ADMINISTRATION IT IS CONSIDERING AT LEAST ONE NEW LOAN PROGRAM THE TECHNOLOGY COMMUNITY WAS VERY HOPEFUL THERE WAS A CHANGE COMING BECAUSE OF VICE PRESIDENT GORE'S INTEREST AND ALL THE CAMPAIGN TALK SAYS MILTON STEWART VICE CHAIRMAN OF THE ACADEMY OF TECHNOLOGY ENTREPRENEURS AND INNOVATORS BASED IN PHOENIX BUT NOW THEY'RE DISAPPOINTED THINGS ARE TAKING SO LONG IT SEEMS THERE'S NOT ENOUGH FOLLOWTHROUGH HE ADDS PUSHING THEIR COMPLAINTS TO CONGRESSIONAL COMMITTEES WHITE HOUSE AIDES AND SMALL BUSINESS ADMINISTRATION OFFICIALS THESE COMPANIES ARE ASKING FOR NEW GOVERNMENT LOAN PROGRAMS AND A SPECIAL FUND TO MAKE LOANS TO HIGHTECH CONTRACTORS MOVING FROM MILITARY TO COMMERCIAL MARKETS SUCH HELP IS NEEDED THEY ARGUE BECAUSE THE INABILITY TO GET WORKING CAPITAL AND OTHER FINANCING FROM LENDERS IS THREATENING THE SURVIVAL OF MANY SMALL FIRMS CLINTON ADMINISTRATION OFFICIALS WHO INSIST THEY ARE LISTENING SAY AT LEAST ONE MAJOR NEW PROGRAM IS IN THE WORKS THE SBA IS ACTIVELY CONSIDERING A SPECIAL GUARANTEEDLOAN PROGRAM FOR TECHNOLOGYBASED COMPANIES A TOP AGENCY OFFICIAL SAYS WHILE DETAILS HAVEN'T YET BEEN WORKED OUT FOR THE PROGRAM WHICH WON'T BE ANNOUNCED UNTIL NEXT YEAR IT WOULD BE PATTERNED AFTER THE SBA'S BASIC LOANGUARANTEE PROGRAM THE AGENCY OFFICIAL SAYS THE PROPOSAL FITS IN WITH SBA ADMINISTRATOR ERSKINE BOWLES'S INTERESTS AS WELL AS WITH A MANDATE FROM VICE PRESIDENT GORE'S REPORT ON REINVENTING GOVERNMENT TO REVIEW THE SBA'S LOAN PROGRAMS MR STEWART OF THE TECHNOLOGY ACADEMY HAS PROPOSED A PILOT PROGRAM THAT WOULD GUARANTEE FROM 100 TO 1000 BANK LOANS OVER A YEAR OR TWO TO TECHNOLOGYBASED BUSINESSES IN EACH OF THE SBA'S 10 REGIONS THE BANKS WOULD RECEIVE TECHNICAL INFORMATION AND SUPPORT FROM SEVERAL BANKING AND SMALLBUSINESS ORGANIZATIONS MR STEWART BELIEVES A SUCCESSFUL PILOT PROGRAM WOULD HELP BRING DOWN THE BARS IN THE BANKING INDUSTRY WHICH IS GENERALLY AGAINST LOANS TO TECHNOLOGYBASED FIRMS DESPITE A STRONG MARKET FOR NEW HIGHTECH STOCK ISSUES MANY SMALL HIGHTECH BUSINESS OWNERS SAY THEIR OWN SITUATION IS DIFFICULT ALTHOUGH THEY NEED CREDIT TO EXPAND AND CAPITAL TO OPERATE FINANCIAL INSTITUTIONS ARE NERVOUS ABOUT LENDING TO FIRMS THAT CAN'T OFFER MANY ASSETS AS COLLATERAL IT WAS TIME TO RENEW MY CREDIT LINE AND I WALKED INTO MY BANK WITH 2 MILLION WORTH OF CONTRACTS IN MY HAND FROM THE AIR FORCE AND MCDONNELL DOUGLAS CORP SAYS DAVID COLVIN PRESIDENT OF TRIANGLE RESEARCH & DEVELOPMENT CORP A SMALL NORTH CAROLINA MEDICAL AND TECHNICAL RESEARCH FIRM THEY GAVE ME 60 DAYS TO FIND ANOTHER BANK THAT WAS 60 DAYS AGO MR COLVIN SAYS THAT AFTER EIGHT SUCCESSFUL YEARS WITH ONE BANK HE HAD HOPED TO GET A 50 INCREASE IN HIS LINE OF CREDIT INSTEAD HE SAYS THE BANK DENIED THAT REQUEST WANTING THE COMPANY TO ACQUIRE MORE ASSETS SUCH AS BUILDINGS AND EQUIPMENT AS COLLATERAL THE 15EMPLOYEE COMPANY DOESN'T ACQUIRE MANY SUCH HARD ASSETS BECAUSE IT OFTEN FORMS JOINT VENTURES WITH MANUFACTURERS AND MARKETING CONCERNS MR COLVIN SAYS BASICALLY BANKS ARE TECHNOLOGICALLY IGNORANT AND THEY DON'T WANT TO LEARN ANYTHING HE COMPLAINS BANKS' LACK OF FAMILIARITY WITH TECHNOLOGY IS AN EXTRA HURDLE THESE COMPANIES FACE IN ADDITION TO THOSE THAT CONFRONT ALL SMALL BUSINESSES MR STEWART A FORMER SBA CHIEF COUNSEL FOR ADVOCACY TOLD A CONGRESSIONAL HEARING LAST MONTH HE SUGGESTS THAT THE GOVERNMENT ESTABLISH A NEW TECHNOLOGY ADVISORY SERVICE FOR BANKS AS WELL AS AN SBA GUARANTEEDLOAN PROGRAM JUST FOR HIGHTECH COMPANIES FORMER DEFENSE CONTRACTORS SAY THEY IN PARTICULAR NEED HELP SECURING FINANCING GREG FRISBY PRESIDENT OF FRISBY AIRBORNE HYDRAULICS INC OF FREEPORT NY MOVED HIS FIRM IN THE LATE 1980S FROM RELYING ON THE DEPARTMENT OF DEFENSE FOR 90 OF ITS WORK TO FINDING 75 OF ITS CONTRACTS IN THE COMMERCIAL MARKETPLACE AS THE US MILITARY BUDGET SHRINKS THAT TRANSITION IS A GOAL OF MANY FORMER DEFENSE CONTRACTORS BUT IT HAS UNEXPECTED PITFALLS FOR INSTANCE MR FRISBY CLAIMS HE LOST A MAJOR CONTRACT A YEARANDAHALF AGO TO A FOREIGNBASED COMPETITOR THAT GOT HELP FROM ITS GOVERNMENT IN FINANCING THE UPFRONT COSTS OF BUILDING PROTOTYPES AND PARTS FURTHERMORE MR FRISBY SAYS BANKS OFTEN AREN'T WILLING TO FINANCE PROJECTS IN THE AIRCRAFT INDUSTRY WHEN IT TAKES SEVERAL YEARS OF SPENDING BEFORE CONTRACT PAYMENTS BEGIN WHEN YOUR COMPETITORS AREN'T OUTCOMPETING YOU THEY'RE JUST OUTFINANCING YOU YOU CAN'T WIN NO MATTER HOW MANY TOTALQUALITYMANAGEMENT PROGRAMS YOU HAVE MR FRISBY SAYS HIS COMPANY CUT 20 OF ITS WORK FORCE EARLIER THIS YEAR AND NOW HAS 80 WORKERS IN A REPORT RELEASED LAST MONTH BUSINESS EXECUTIVES FOR NATIONAL SECURITY A WASHINGTON GROUP REPRESENTING ABOUT 1500 BUSINESS EXECUTIVES INVOLVED IN DEFENSE AND SECURITY PROPOSES THAT THE GOVERNMENT ESTABLISH A FUND FOR DEFENSE CONVERSION AN ORGANIZATION THAT WOULD OFFER LONGTERM LOANS TO DEFENSE FIRMS TRYING TO ENTER PRIVATE MARKETS THE GROUP SUGGESTS THAT THE FUND BE A COALITION OF VENTURE CAPITAL CONCERNS WITH THE US GOVERNMENT AS AN INITIAL INVESTOR THE GROUP ALSO WANTS AN EXPANSION OF BUSINESS DEVELOPMENT PROGRAMS TO HELP SMALL TECHNICAL FIRMS WITH MARKETING AND BUSINESS PLANNING TO HELP TAKE THEIR QUALITY PRODUCTS TO APPROPRIATE MARKETS CONGRESS IS SET TO ADDRESS THE FINANCING NEEDS OF SMALL HIGHTECH COMPANIES NEXT YEAR AMONG OTHER MEASURES LAWMAKERS WILL CONSIDER A BILL INTRODUCED BY DEMOCRATIC REP PAUL KANJORSKI OF PENNSYLVANIA TO SET UP A FUND TO HELP PRIVATE COMPANIES INVOLVED IN BRINGING FEDERAL PATENTS AND TECHNOLOGIES TO THE COMMERCIAL MARKETPLACE IN ADDITION MANY BELIEVE HIGHTECH VENTURES WILL BENEFIT FROM THE SBA'S RECENT EXPANSION AND OVERHAUL OF ITS SMALL BUSINESS INVESTMENT COMPANY PROGRAM THE PROGRAM SUPPORTS VENTURECAPITAL FIRMS THAT OFTEN MAKE HIGHRISK INVESTMENTS HOWEVER MR COLVIN OF TRIANGLE RESEARCH ARGUES WE NEED AN ENTIRELY NEW FINANCIAL INSTITUTION THAT SITS BETWEEN THE CONSERVATIVE BANKS AND THE TRADITIONAL VENTURECAPITAL INDUSTRY THAT WANTS TO OVERCONTROL YOUR BUSINESS 9312060083 931206 TECHNOLOGY & HEALTH MOTOROLA AND IN FOCUS SYSTEMS VENTURE SETS PACT WITH SANYO FOR FLAT DISPLAYS BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL MOTIF INC A JOINT VENTURE OF MOTOROLA INC AND IN FOCUS SYSTEMS INC SIGNED AN AGREEMENT WITH TOTTORI SANYO OF TOKYO AIMED AT HELPING TO ESTABLISH A VIABLE FLATPANEL DISPLAY INDUSTRY IN THE US AND AT LAUNCHING AMERICAN DISPLAY TECHNOLOGY IN JAPAN HENRY LOWENSOHN ONE OF MOTIF'S TWO CHIEF EXECUTIVE OFFICERS SAID IN AN INTERVIEW THAT THE PACT CALLS FOR SANYO TO BUY MOTIF'S SOCALLED ACTIVEADDRESSING MICROCHIPS WHICH ALLOW RELATIVELY INEXPENSIVE SCREENS CALLED PASSIVEMATRIX DISPLAYS TO HANDLE FULLMOTION COLOR VIDEO SANYO THE WORLD'S THIRDLARGEST MAKER OF PASSIVEMATRIX SCREENS WILL USE THE CHIPS TO MAKE ITS OWN SCREENS AND SUPPLY MOTIF WITH LIQUIDCRYSTAL CELLS WHICH MOTIF WILL CONNECT TO ITS ACTIVEADDRESSING CHIPS TO INCREASE PRODUCTION OF SCREENS AT A PLANT IN WILSONVILLE ORE MOTOROLA BASED IN SCHAUMBURG ILL WILL MAKE THE ACTIVEADDRESSING CHIPS FOR MOTIF WHICH ALONG WITH IN FOCUS IS BASED IN WILSONVILLE THE ALLIANCE WILL HELP MOTIF INITIATE THE FIRST LARGESCALE PRODUCTION OF ADVANCED LIQUIDCRYSTAL DISPLAYS IN THE US AND PROMOTE MOTIF'S ACTIVEADDRESSING TECHNOLOGY AS A STANDARD FOR VIDEO LCDS MR LOWENSOHN ASSERTED MOTIF IS SEEKING SIMILAR ALLIANCES WITH ONE OR TWO OTHER BIG JAPANESE OR SOUTH KOREAN MAKERS OF PASSIVEMATRIX SCREENS ACTIVE ADDRESSING IS CONSIDERED A POTENTIAL THREAT TO STEAL SOME BUSINESS AWAY FROM JAPAN'S 3 BILLION ACTIVEMATRIX DISPLAY INDUSTRY ACTIVE MATRIX IS AN EXPENSIVE DEFECTPLAGUED PROCESS IN WHICH MANUFACTURERS PUT TRANSISTORS BEHIND EVERY SINGLE PIXEL OF A SCREEN TO SIMULTANEOUSLY RECEIVE SIGNALS CARRYING FULLMOTION COLOR VIDEO BUT IT HAS ALLOWED JAPANESE FIRMS TO DOMINATE THE RAPIDLY GROWING MARKET FOR COLORVIDEOQUALITY SCREENS USED IN PORTABLE COMPUTERS AND OTHER DEVICES DESPITE COSTS OF 1200 OR MORE FOR SUCH SCREENS DEMAND FAR EXCEEDS SUPPLY AT THE MOMENT AN EARLIER TECHNOLOGY PASSIVEMATRIX SCREENS ARE TOO SLOW TO PROVIDE GOODQUALITY VIDEO BECAUSE THEY PROCESS SIGNALS SEQUENTIALLY IN ROWS AND COLUMNS BUT ACTIVEADDRESSING TECHNOLOGY USES INTEGRATED CIRCUITS LOCATED OFFSCREEN TO SIGNAL ALL PIXELS CONSTANTLY AND SIMULTANEOUSLY DISPLAY EXPERTS SUCH AS JOSEPH CASTELLANO PRESIDENT OF STANFORD RESOURCES INC SAY ACTIVE ADDRESSING PRODUCES COLOR VIDEO THAT'S NEARLY AS GOOD AS ACTIVE MATRIX BUT COSTS 25 TO 30 LESS TO MANUFACTURE BLACKANDWHITE VIDEO SCREENS USING ACTIVE ADDRESSING COST HALF AS MUCH TO MAKE HE SAYS IT'S A GOOD TECHNOLOGY MR CASTELLANO SAID YOU STILL GET BETTERLOOKING AND FASTER DISPLAY WITH ACTIVE MATRIX BUT IT'S A BIG IMPROVEMENT OVER THE CONVENTIONAL PASSIVE MATRIX MOTIF FACES COMPETITION FROM OPTREX A JOINT VENTURE OF MITSUBISHI ELECTRIC CORP AND ASAHI GLASS CO THAT'S EXPLORING AN ADDRESSING TECHNIQUE MR CASTELLANO SAID IT ALSO MUST GET ITS ACTIVEADDRESSING SCREENS TO THE MARKET BEFORE OTHER JAPANESE COMPANIES BRING MORE ACTIVEMATRIX CAPACITY ON LINE IMPROVE MANUFACTURING QUALITY AND DRIVE DOWN PRICES MR LOWENSOHN IS OPTIMISTIC THAT MOTIF CAN HAVE A MAJOR MARKET PRESENCE WITHIN 18 MONTHS PARTICULARLY WITH SUPPLIERS SUCH AS SANYO HE SAID PRODUCTION AT THE WILSONVILLE PLANT WILL REACH AN ANNUAL RATE OF 300000 DISPLAYS BY THAT TIME FOR A SMALL INCREMENTAL AMOUNT THOSE THAT DON'T WANT TO PAY THE VERY HIGH PRICE FOR ACTIVE MATRIX CAN GET COLORVIDEO PERFORMANCE HE SAID 9312060082 931206 WINTERTHUR SUBSIDIARY TO ACQUIRE CHATEAU A CANADIAN INSURER SPECIAL TO THE WALL STREET JOURNAL ZURICH WINTERTHUR INSURANCE CO OF SWITZERLAND SAID ITS CANADIAN SUBSIDIARY CITADEL OF TORONTO AGREED TO ACQUIRE CHATEAU INSURANCE WHICH OPERATES IN ONTARIO AND QUEBEC PROVINCES A WINTERTHUR SPOKESMAN DECLINED TO DISCLOSE TERMS OF THE TRANSACTION BUT SAID THE COMPANY WILL ACQUIRE CHATEAU INSURANCE AT FAVORABLE CONDITIONS THE ACQUISITION IS SUBJECT TO APPROVAL BY CERTAIN AUTHORITIES WINTERTHUR SAID CHATEAU A REGIONAL NONLIFE INSURER BASED IN TORONTO HAS ANNUAL PREMIUM VOLUME OF ABOUT 20 MILLION CANADIAN DOLLARS US15 MILLION CHATEAU WHICH FOCUSES ON SMALL AND MEDIUMSIZE COMMERCIAL INSURANCE RISKS WILL BE INTEGRATED INTO CITADEL WINTERTHUR SAID CHATEAU'S GEOGRAPHICAL EMPHASIS PORTFOLIO AND DISTRIBUTION CHANNEL IDEALLY SUPPLEMENT WINTERTHUR'S CANADIAN OPERATIONS WINTERTHUR SAID WINTERTHUR SAID IT EXPECTS TO ACHIEVE ANNUAL PREMIUM VOLUME OF ABOUT C200 MILLION IN CANADA AFTER THE ACQUISITION IS COMPLETED 9312060081 931206 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ASANTE TECHNOLOGIES INC INITIAL 2 MILLION SHARES VIA SMITH BARNEY SHEARSON INC BROTHERS GOURMET COFFEES INITIAL 42 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP CHARTWELL RE CORP INITIAL 22 MILLION SHARES VIA SALOMON BROTHERS COASTCAST CORP INITIAL 2 MILLION SHARES VIA BEAR STEARNS & CO DEBARTOLO REALTY CORP INITIAL 316 MILLION SHARES VIA MORGAN STANLEY & CO DIGIDESIGN INC INITIAL 16 MILLION SHARES VIA ROBERSTON STEPHENS & CO FOAMEX INTERNATIONAL INC INITIAL 107 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE GATEWAY 2000 INC INITIAL 109 MILLION SHARES VIA GOLDMAN SACHS & CO HOME HOLDINGS INC INITIAL OFFERING OF UP TO 134 MILLION SHARES VIA LEHMAN BROTHERS INFINITY BROADCASTING CORP 56 MILLION CLASS A SHARES VIA LEHMAN BROTHERS INLAND STEEL 4 MILLION SHARES VIA GOLDMAN SACHS INTERMEDIA COMMUNICATIONS OF FLORIDA INC 21 MILLION SHARES VIA BEAR STEARNS INTERPORE INTERNATIONAL INITIAL 2 MILLION SHARES VIA PRUDENTIAL SECURITIES INC JP REALTY INC INITIAL 96 MILLION SHARES VIA MERRILL LYNCH & CO LUTINE CAPITAL CORP INITIAL 125 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE OXFORD RESOURCES INITIAL 33 MILLION SHARES VIA PRUDENTIAL SECURITIES PACIFICARE HEALTH SYSTEMS 500000 CLASS A SHARES VIA DEAN WITTER REYNOLDS INC PACIFIC GULF PROPERTIES INC INITIAL 54 MILLION SHARES VIA ALEX BROWN & SONS INC PRIME RETAIL INC INITIAL 135 MILLION SHARES VIA GOLDMAN SACHS QUIKTURN DESIGN SYSTEMS INC INITIAL 24 MILLION SHARES VIA MORGAN STANLEY RACOTEK INC INITIAL 4 MILLION SHARES VIA ALEX BROWN & SONS SIGNET STAR HOLDINGS INC INITIAL 59 MILLION SHARES VIA SALOMON BROTHERS TACO CABANA INC 2 MILLION SHARES VIA MONTGOMERY SECURITIES UTI ENERGY CORP INITIAL 29 MILLION SHARES VIA BEAR STEARNS WHOLE FOODS MARKET INC 26 MILLION SHARES VIA ROBERTSON STEPHENS & CO KING COUNTY WASH 2987 MILLION OF VARIOUS 1993 IMPROVEMENT REFUNDING BONDS VIA COMPETITIVE BID NEW YORK STATE DORMITORY AUTHORITY 180 MILLION OF SERIES 1993C STATE UNIVERSITY EDUCATIONAL FACILITIES REVENUE BONDS VIA COMPETITIVE BID MARYLAND DEPARTMENT OF TRANSPORTATION 3328 MILLION OF REFUNDING BONDS VIA COMPETITIVE BID CALIFORNIA DEPARTMENT OF WATER RESOURCES 190 MILLION OF WATERSYSTEM REVENUE BONDS VIA COMPETITIVE BID BATTERY PARK CITY AUTHORITY NY 139 MILLION OF BONDS VIA A BEAR STEARNS GROUP DEKALB COUNTY GA 123 MILLION BONDS VIA A SMITH BARNEY SHEARSON GROUP HARRIS COUNTY TEXAS 250 MILLION OF REFUNDING BONDS VIA A GOLDMAN SACHS GROUP MICHIGAN HOSPITAL FINANCE AUTHORITY 128 MILLION OF REFUNDING BONDS VIA A GOLDMAN SACHS GROUP MICHIGAN MUNICIPAL BOND AUTHORITY 102 MILLION SERIES 1993 STATE REVOLVING FUND REVENUE BONDS VIA A BEAR STEARNS GROUP NEW YORK CITY 6564 MILLION FISCAL 1994 SERIES E AND F GENERAL OBLIGATION BONDS VIA A PRUDENTIAL SECURITIES GROUP NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP 329 MILLION OF BONDS VIA A BEAR STEARNS GROUP NEW YORK STATE MEDICAL CARE AUTHORITY 1517 MILLION OF BONDS VIA A MERRILL LYNCH GROUP 9312060080 931206 POLITICS & POLICY LABOR SECRETARY TO STRONGLY SUPPORT' STRICTER WORKPLACE SAFETY REGULATIONS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH IS PREPARED TO TELL CONGRESS HE BACKS A CONTROVERSIAL BILL THAT WOULD FORCE COMPANIES WITH 11 OR MORE EMPLOYEES TO SET UP WORKERMANAGEMENT TEAMS TO IMPROVE WORKPLACE SAFETY IN A DRAFT OF A LETTER TO SEN EDWARD KENNEDY D MASS AND REP WILLIAM FORD D MICH THE SPONSORS OF THE MEASURE TO OVERHAUL THE WORKPLACE SAFETY LAW MR REICH SAYS I AM PLEASED TO ADVISE YOU THAT THE DEPARTMENT OF LABOR WILL STRONGLY SUPPORT YOUR LEGISLATION THE LETTER IS AWAITING WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET APPROVAL THE BILL WHICH IS STRONGLY BACKED BY ORGANIZED LABOR WOULD REQUIRE ALL EMPLOYERS TO ESTABLISH SAFETY AND HEALTH PROGRAMS AIMED AT PREVENTING EMPLOYEE INJURIES AND ILLNESSES INCLUDING WORKER TRAINING AND EDUCATION IT WOULD STEP UP PROTECTION FOR WHISTLEBLOWERS IN JOBSAFETY CASES AND IT WOULD INCREASE FEDERAL CRIMINAL PENALTIES FOR VIOLATIONS OF THE OCCUPATIONAL SAFETY AND HEALTH ACT BUSINESS GROUPS VEHEMENTLY OPPOSE THE BILL CONTENDING IT WOULD MANDATE A HOST OF COSTLY NEW SAFETY REGULATIONS FOR US COMPANIES CONSERVATIVE REPUBLICANS SUCH AS REP WILLIAM GOODLING OF PENNSYLVANIA SAY IT WOULD SIMPLY RAISE COSTS FOR SMALL BUSINESSES AND OTHERS AND THAT THE CLINTON ADMINISTRATION INSTEAD SHOULD REWARD COMPANIES WITH GOOD SAFETY RECORDS MR GOODLING SAYS FOR EXAMPLE THERE WERE FEWER WORKPLACE FATALITIES LAST YEAR THAN IN ANY YEAR SINCE THE 1930S MR REICH'S SUPPORT FOR THE BILL IS A VICTORY FOR ITS SPONSORS LAST SPRING MR REICH ANGERED MR FORD IN TESTIMONY BEFORE THE HOUSE EDUCATION AND LABOR COMMITTEE BY DECLINING TO BACK THE CHAIRMAN'S PLAN INSTEAD MR REICH SAID HE WOULD STUDY THE PROPOSAL WITH MR REICH'S LETTER CIRCULATING IN WASHINGTON BUSINESS GROUPS ARE GRUMBLING THAT HE IS PROVIDING PART OF THE CLINTON ADMINISTRATION'S PAYBACK TO ORGANIZED LABOR AFTER ANGERING UNIONS OVER THE NORTH AMERICAN FREE TRADE AGREEMENT LABOR DEPARTMENT OFFICIALS DECLINED TO COMMENT ON THE DRAFT LETTER OR ITS MOTIVES SAYING ONLY THAT THE ADMINISTRATION'S STAND ON THE BILL WILL BE PUBLIC SOON IN THE LETTER MR REICH SAID THAT EVEN BEFORE THE LEGISLATION PASSES THE LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION WILL MOVE AHEAD WITH REGULATORY EFFORTS TO REQUIRE ALL EMPLOYERS TO ESTABLISH COMPREHENSIVE OCCUPATIONAL SAFETY AND HEALTH PROGRAMS THEY THEN WOULD BE REGULARLY CERTIFIED BY EITHER PRIVATESECTOR EXPERTS OR EMPLOYEE REPRESENTATIVES IN ADDITION TO THE WORKPLACE COMMITTEES THE BILL WOULD CREATE SPECIAL REQUIREMENTS FOR THE CONSTRUCTION INDUSTRY TO BEEF UP SAFETY EFFORTS MOREOVER THE LEGISLATION WOULD MAKE LAW A STRING OF LIMITS FOR AIR CONTAMINANTS EFFORTS BY OSHA TO CREATE SUCH LIMITS THROUGH RULEMAKING WERE STRUCK DOWN BY FEDERAL COURTS 9312060079 931206 SMALL STOCK FOCUS NATURE'S BOUNTY AND GENERAL NUTRITION LOOK PEPPY TO MANAGER DESPITE RUNUP BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL IN A YEAR WHEN INVESTORS HAVE BEEN OUTRIGHT NASTY TO MANY HEALTHCARE AND DRUG ISSUES THEY'VE TAKEN A SHINE TO A PAIR OF HOT VITAMIN STOCKS NATURE'S BOUNTY AND GENERAL NUTRITION HAVE SEEN THEIR RESPECTIVE STOCK PRICES TREBLE FROM 52WEEK LOWS ON THE NASDAQ STOCK MARKET THE FORMER A BOHEMIA NY PRODUCER AND DISTRIBUTOR OF VITAMINS AND HEALTHFOOD SUPPLEMENTS MUSCLED ITS WAY TO NEW 12MONTH HIGHS LATE LAST WEEK THE STOCK WHICH FETCHED AROUND 7 JUST OVER A YEAR AGO CLOSED FRIDAY AT 20 1/2 UP 1/2 FOLLOWING A GAIN OF 2 3/8 OR 14 ON HEAVY VOLUME THURSDAY PRICES REFLECT A 2FOR1 STOCK SPLIT EFFECTIVE AUG 24 GENERAL NUTRITION A PITTSBURGHBASED PRODUCER AND DISTRIBUTOR OF VITAMINS NUTRITIONAL SUPPLEMENTS AND PERSONALCARE PRODUCTS IS TRADING SHY OF ITS 52WEEK HIGH OF 30 1/2 BUT IS WELL UP ON ITS 12MONTH LOW OF 9 3/4 IT CLOSED FRIDAY AT 27 1/4 DOWN 1/4 JAY TRACEY PORTFOLIO MANAGER OF OPPENHEIMER MANAGEMENT'S DISCOVERY FUND IS A COMMITTED FAN OF BOTH STOCKS FOR A START HE THINKS THE BABYBOOM GENERATION WILL ACCELERATE ITS VITAMINPOPPING HABIT AS A COSTCONSCIOUS MEANS OF PREVENTIVE HEALTH I BELIEVE THAT ATTENTION TO FITNESS IS A LONGTERM TREND HE SAYS THE PERCEPTION THAT VITAMIN SUPPLEMENTS ARE A RELATIVELY INEXPENSIVE WAY TO KEEP DOCTORS' BILLS DOWN APPEARS TO BE CATCHING ON IN THIS ERA OF HEALTHCARE COST CONTROL HE ADDS THERE IS THE RISK HOWEVER THAT THE TREND WILL PROVE A FAD HE ACKNOWLEDGES THE FUND MANAGER NOTES THAT BOTH COMPANIES HAVE BEEN CAREFUL WITH RESPECT TO THEIR PRODUCT LABELING AND THUS AREN'T LIKELY TO RUN AFOUL OF FOOD AND DRUG ADMINISTRATION CONCERNS ABOUT EXAGGERATED CLAIMS IN THE VITAMIN AND HEALTHSUPPLEMENT INDUSTRY CONGRESS HE NOTES IS ALSO REVIEWING THE ISSUE NATURE'S BOUNTY PRODUCES AROUND 50 OF THE PRODUCTS IT SELLS THROUGH ITS DISTRIBUTION CHANNELS GENERAL NUTRITION PRODUCES 30 FOR NOW MR TRACEY IS FOCUSING ON IMPRESSIVE GROWTH RATES AT BOTH COMPANIES PARTICULARLY NATURE'S BOUNTY WHERE SALES INCREASES AT THE MAILORDER DISTRIBUTOR HAVE AVERAGED MORE THAN 30 IN THE PAST EIGHT QUARTERS HE THINKS THE STOCK TRADING AT A MULTIPLE OF 25 TIMES HIS EARNINGS ESTIMATE FOR THE CURRENT YEAR HAS A SOLID CHANCE OF APPRECIATING 30 OVER THE NEXT SEVERAL MONTHS THE STOCK TOUCHED A 52 WEEKHIGH OF 21 FRIDAY WHAT IMPRESSES ME MOST IS THE WAY THEY'VE DELIVERED EXCEPTIONAL MARGINS ON ACCELERATING SALES HE SAYS IF THEY CAN KEEP IT UP AND CONTINUE TO BEAT UPWARDLY REVISED EARNINGS ESTIMATES IT'S GOING TO CONTINUE TO BE A VERY GOOD STOCK MR TRACEY THINKS THE COMPANY CAN POST EARNINGS PER SHARE FOR THE FISCAL YEAR ENDING IN SEPTEMBER 1994 OF 80 CENTS UP FROM 53 CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED EARNINGS OF 47 TO 49 CENTS IN THAT YEAREARLIER PERIOD FOR THE YEAR ENDING IN SEPTEMBER 1995 HE SEES 110 A SHARE OR A 400 INCREASE FROM THE 28 CENTS A SHARE REPORTED IN FISCAL 1992 OVER THE NEXT THREE YEARS HE SAYS THE COMPANY CAN ACHIEVE 35 ANNUAL EARNINGS GROWTH SUCH RAPID GROWTH ASIDE MR TRACEY IS GIVING A SLIGHTLY HIGHER WEIGHTING IN HIS PORTFOLIO TO GENERAL NUTRITION A NATIONWIDE CHAIN WITH FAR BIGGER SALES VOLUME THAN NATURE'S BOUNTY IT'S A MORE MATURE COMPANY WITH GREATER SPONSORSHIP ON WALL STREET AND THEREFORE IT'S A MORE PREDICTABLE PLAY HE SAYS IT'S REASONABLE TO PAY A LITTLE MORE FOR GENERAL NUTRITION HE ADDS NOTING THAT THE STOCK IS TRADING AT 27 TIMES HIS ESTIMATE FOR FORWARD EARNINGS OF 1 A SHARE AS IT STANDS 13 OF THE 600 MILLIONASSET FUND IS IN GENERAL NUTRITION AND 1 IN NATURE'S BOUNTY HE NOTES THAT STORE UPGRADES AT GENERAL NUTRITION OUTLETS APPEAR TO BE HELPING SALES SUCH THAT THE COMPANY IS LIKELY TO ACHIEVE 30 EARNINGS GROWTH IN THE MEDIUM TERM ROLAND GILLIS WHO RUNS BOSTONBASED KEYSTONE GROUP'S S4 EQUITY FUND LIKES GENERAL NUTRITION ON SIMILAR GROUNDS IT'S A SPECIALITYGROWTH RETAILER WITH THE LARGEST MARKET SHARE AROUND 10 IN A FRAGMENTED INDUSTRY HE ESTIMATES THE STOCK CAN REACH THE HIGH 30S WITHIN 12 MONTHS ANALYSTS AT FIDELITY INVESTMENTS IN BOSTON RATE BOTH STOCKS A BUY NOTING THAT VITAMIN USAGE APPEARS TO BE PICKING UP AND THAT BOTH COMPANIES SEEM TO BE EXPANDING THEIR CUSTOMER BASE THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES GAINED 095 POINT OR 038 TO 25386 FOR THE WEEK THE RUSSELL 2000 INDEX GAINED 371 POINTS OR 148 AND THE NASDAQ COMPOSITE INDEX ADDED 1737 POINTS OR 225 THE INDEX STILL LIES 636 POINTS OR 244 FROM ITS CLOSING HIGH SET ON NOV 2 MEDIMMUNE SANK 4 1/4 TO 11 3/4 AFTER SLIDING 7 OR 30 THURSDAY AFTER A FOOD AND DRUG ADMINISTRATION PANEL SAID THE COMPANY NEEDS TO DO FURTHER CLINICAL TRIALS FOR ITS RESPIRATORY VIRUS DRUG RESPIGAM ON FRIDAY SMITH BARNEY SHEARSON AND ALEX BROWN & SONS DOWNGRADED MEDIMMUNE'S SHARES VLSI TECHNOLOGY TUMBLED 4 1/2 TO 10 1/8 THE COMPANY SAID APPLE COMPUTER INTENDS TO RESCHEDULE AND IN SOME CASES CANCEL ORDERS FOR SEVERAL VLSI PRODUCTS VLSI SAID EARNINGS COULD BE LOWERED BY 15 CENTS A SHARE DURING THE FIRST HALF OF 1994 AS A RESULT BRODERBUND SOFTWARE SKIDDED 5 1/2 TO 41 3/4 LATE THURSDAY THE COMPANY SAID FISCAL FIRSTQUARTER REVENUE WILL BE ABOUT 33 MILLION DOWN FROM ANALYSTS' ESTIMATES OF 34 MILLION TO 39 MILLION BRODERBUND SAID IT EXPECTS EARNINGS FOR THE QUARTER TO BE 60 CENTS TO 63 CENTS A SHARE COMPARED WITH ANALYSTS' FORECASTS OF 55 CENTS TO 63 CENTS BEAR STEARNS LOWERED ITS RATING ON BRODERBUND TO AVOID FROM HOLD CYTOCARE SHOT UP 1 1/2 TO 5 7/8 THE COMPANY SAID A RESEARCH TEAM DISCOVERED A NOVEL RECOGNITION OF A PROSTATESPECIFIC MEMBRANE/CYTOSOLIC ANTIGEN THAT COULD LEAD TO A TREATMENT FOR PROSTATE CANCER ENZON JUMPED 7/8 TO 5 7/8 THE COMPANY SAID IT HAS RECEIVED A LETTER FROM THE FDA STATING THAT ITS ONCASPAR LEUKEMIA DRUG IS APPROVABLE THE LICENSE TO MARKET THE DRUG WILL BE GRANTED WHEN PRODUCT LABELING ISSUES ARE RESOLVED ON THE NEW YORK STOCK EXCHANGE HEALTHSOUTH REHABILITATION ROSE 3 1/4 TO 20 THE COMPANY SAID IT AGREED TO BUY 28 REHABILITATION HOSPITALS AND 45 OUTPATIENT REHABILITATION CENTERS FROM NATIONAL MEDICAL ENTERPRISES ALSO LISTED ON THE BIG BOARD NATIONAL MEDICAL WHICH INCHED UP 5/8 TO 12 1/2 SAID IT WILL SELL THE FACILITIES FOR ABOUT 300 MILLION IN CASH PLUS THE NET BOOK VALUES OF CERTAIN INVENTORY RECEIVABLES AND PREPAYMENTS SUBJECT TO CERTAIN ADJUSTMENTS CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9312060078 931206 DIVIDEND NEWS AMERICAN PRESIDENT COS AMERICAN PRESIDENT COS OAKLAND CALIF DECLARED A 2FOR1 STOCK SPLIT AND SAID IT WOULD RAISE ITS DIVIDEND RATE THE STOCK SPLIT PAYABLE JAN 28 TO SHAREHOLDERS OF RECORD DEC 31 WILL INCREASE THE COMPANY'S OUTSTANDING COMMON SHARES TO 268 MILLION FROM 134 MILLION THE COMPANY'S BOARD ALSO SAID THE QUARTERLY DIVIDEND RATE WOULD RISE TO 20 CENTS A SHARE FROM 15 CENTS THE NEW RATE WILL AMOUNT TO 10 CENTS A SHARE ON THE POSTSPLIT SHARES AMERICAN PRESIDENT PROVIDES CONTAINER TRANSPORTATION SERVICES THROUGH A NETWORK OF TRUCK RAIL AND OCEAN TRANSPORT LINES 9312060077 931206 INSTANT FIX ON DATA KEEPS ANALYSTS BUSY BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL WITHIN MINUTES OF THE GOVERNMENT'S RELEASE FRIDAY MORNING OF GOOD NEWS ON THE JOB FRONT DOZENS OF WALL STREET ECONOMISTS WERE ZAPPING COMMENTARIES TO THE DESKTOP COMPUTERS OF THE NATION'S MONEY MANAGERS OTHER PROGNOSTICATORS CHIMED IN BY FAX OFFERING YET MORE OPINIONS AND CHARTS GARNISHED WITH HANDWRITTEN BLURBS LIKE SAMPLE VOTING RESULTS ON ELECTION NIGHT AND PLAYBYPLAY COMMENTARY OF PRO FOOTBALL GAMES WALL STREET HAS MOVED FULL SPEED INTO INSTANT ECONOMIC ANALYSIS BUT WHILE FIRMS ARE PUSHING MORE SUCH ANALYSIS AND ADVICE THAN EVER BEFORE IT'S AN OPEN QUESTION WHETHER THIS FLOOD OF INFORMATION HELPS OR HINDERS INVESTORS WHO MUST WADE THROUGH IT IT INCREASES MARKET VOLATILITY AND THE VOLUME OF BUSINESS BUT IT DOES NOT NECESSARILY IMPROVE PERFORMANCE SAYS HENRY KAUFMAN HIMSELF A ONETIME MARKET SOOTHSAYER AT SALOMON BROTHERS INC HE NO LONGER SELLS HIS OWN ANALYSIS BUT USES IT TO MANAGE BOND INVESTMENTS FOR HIMSELF AND OTHERS SIGNIFICANTLY OUTPERFORMING STANDARD BONDMARKET INDEXES IN THE PROCESS BECAUSE THE BARRAGE OF ADVICE FROM WALL STREET HELPS SPUR A HERD MENTALITY AMONG INVESTORS THE SMARTEST ONES MAY BE THOSE WHO REFUSE TO FOLLOW IT SAYS WILLIAM GROSS MANAGING DIRECTOR OF PACIFIC INVESTMENT MANAGEMENT CO OF NEWPORT BEACH CALIF UNDER THE CIRCUMSTANCES YOU DISCIPLINE YOURSELF TO FOCUS LONGERTERM HE SAYS WALL STREET FOR ITS PART CONTENDS THAT IT'S ONLY TRYING TO GIVE CUSTOMERS WHAT THEY WANT THE SHORTTERM FOCUS OF MANY BIG INSTITUTIONAL INVESTORS INCREASINGLY CALLS FOR MORE DAYTODAY ECONOMIC GUIDANCE THE FIRMS ARGUE RIGHTLY OR WRONGLY THE PEOPLE WHO BUY AND SELL BONDS AND STOCKS AROUND THE WORLD HAVE BECOME CONVINCED THAT A DAILY DATA FIX HOLDS THE KEY TO SUCCESS SAYS STEPHEN ROACH CHIEF ECONOMIST OF MORGAN STANLEY & CO IN THE PAST YEAR MORGAN STANLEY HAS TRIED TO OBLIGE THOSE PEOPLE BY REVVING UP ITS FAX MACHINES AND MOVING INTO OTHER ELECTRONIC MEDIA BUT WITH SO MANY FIRMS HAWKING INSTANT INSIGHTS IT'S NO EASY TASK TO BE HEARD ABOVE THE DIN ABOUT 50 FIRMS PEDDLE ECONOMIC RESEARCH TO INSTITUTIONAL INVESTORS ACCORDING TO TECHNIMETRICS INC IN RETURN FOR THEIR OPINIONS THE FIRMS EITHER COLLECT FEES FROM CLIENTS DIRECTLY OR LOOK TO BE COMPENSATED INDIRECTLY THROUGH THE TRADING COMMISSIONS THEIR CLIENTS GENERATE A WHOLE INDUSTRY OF ELECTRONIC DATA SERVICES HAS GROWN UP TO DELIVER SUCH ADVICE TO CUSTOMERS' DESKS IN SECONDS FOR INSTANCE ROUGHLY TWO DOZEN FIRMS REACH CUSTOMERS THROUGH FIRST CALL CORP AN ELECTRONIC DISTRIBUTION SYSTEM THAT SPECIALIZES IN REAL TIME DELIVERY OF RESEARCH OTHER POPULAR CONDUITS INCLUDE QUOTRON SYSTEMS BLOOMBERG BUSINESS NEWS AND DOW JONES/TELERATE A UNIT OF DOW JONES & CO WHICH PUBLISHES THE WALL STREET JOURNAL THE TELECOMMUNICATIONS REVOLUTION HAS CHANGED OUR WAY OF DOING BUSINESS SAYS MICHAEL EVANS OF THE EVANS GROUP AN ECONOMICRESEARCH SHOP HIS FIRM COLLECTS A MONTHLY FEE STARTING AT 150 FOR A BASIC SERVICE FOR ECONOMIC RESEARCH MOSTLY FROM STOCK AND BOND MONEY MANAGERS IT SHARES THE FEE WITH SEVERAL ELECTRONIC VENDORS THAT CARRY ITS SERVICE TO MAKE DRY STATISTICS EASIER TO SWALLOW ECONOMISTS HAVE DEVELOPED A FASTFOOD APPROACH TO MARKETING THEIR THOUGHTS SHUNNING MEATY ANALYSIS FOR PITHY SOUNDBITESIZED PHRASES GREAT NUMBERS BUT NEXT MOVE PROBABLY UP ONE ECONOMIST WROTE OF RECENT CONSUMERPRICE NUMBERS A DAMPER ON THE OUTLOOK FOR A MORE PERKY EXPANSION SAID ANOTHER OF AN EARLIER REPORT ON JOBLESS CLAIMS FOR TIMEPRESSED INVESTORS SUCH BREVITY IS A BLESSING I RELY A LOT ON FAXES AND GRAVITATE TOWARDS THINGS THAT ARE SHORT AND VISUALLY ORIENTED SAYS ARTHUR MICHELETTI CHIEF ECONOMIST AT BAILARD BIEHL & KAISER A CALIFORNIA INVESTMENT FIRM BUT IT'S A BIG CHANGE FROM THE DAYS WHEN ECONOMIC STUDY WAS A PONDEROUS WEIGHTY AFFAIR TWENTY YEARS AGO WE WEREN'T EXPECTED TO COMMENT UNTIL WE GOT THE FULL GOVERNMENT REPORT IN THE MAIL RECALLS BROWN BROTHERS HARRIMAN CO'S CHIEF ECONOMIST EDWARD CAMPBELL EVEN THREE OR FOUR YEARS AGO ECONOMIC REPORTS AT FIRMS SUCH AS MORGAN STANLEY WERE ORIENTED TOWARD MORE QUASIACADEMIC RESEARCH SAYS MR ROACH EVEN THESE DAYS CORPORATE CLIENTS OF THE FIRM'S INVESTMENT BANKING DEPARTMENT STILL PREFER THE OLD WAY HE SAYS AS DO MOST JAPANESE AND EUROPEAN INVESTORS BUT ALTHOUGH MR ROACH AND HIS STAFF CONTINUE TO PRODUCE SUCH LENGTHY THINK PIECES A GROWING PORTION OF THEIR WORK NOW IS GEARED TOWARD WHAT HE REFERS TO AS TRANSACTIONORIENTED ADVICE MEANWHILE AT BEAR STEARNS & CO AN ECONOMIST SITS AT THE TRADING DESK TO BROADCAST INSTANT ECONOMIC FEEDBACK TO THE FIRM'S OFFICES AROUND THE WORLD CHIEF ECONOMIST LAWRENCE KUDLOW A FORMER OFFICE OF MANAGEMENT AND BUDGET OFFICIAL IN THE REAGAN ADMINISTRATION CONDUCTS INTERACTIVE TELEPHONE CONFERENCES TWICE A MONTH WITH CLIENTS AND IS HIMSELF A REGULAR ON BUSINESSNEWS TELEVISION SHOWS I'M THERE FOR CSPAN WHENEVER THEY WANT ME SAYS MR KUDLOW THE ACKNOWLEDGED LEADER OF SUCH USER FRIENDLY ECONOMIC ANALYSIS IS EDWARD HYMAN JR WHO LEFT A WALL STREET FIRM SEVERAL YEARS AGO TO FORM INTERNATIONAL STRATEGY & INVESTMENT GROUP INC FOR 14 YEARS MONEY MANAGERS HAVE RATED HIM WALL STREET'S TOP ECONOMIST IN INSTITUTIONAL INVESTOR MAGAZINE'S POLL ONE OF HIS CLAIMS TO FAME POPULARIZING THE DAILY FAXING OF ECONOMIC COMMENTS AND THE CHARTING OF DATA TO POINT OUT ECONOMIC SHIFTS IF IT MOVES WE'LL CHART IT MR HYMAN LIKES TO SAY HE PEPPERS HIS DAILY AND WEEKLY REPORTS WITH SHORT HANDWRITTEN BLURBS AND ARROWS ONE RECENT COMMENTARY ON A CHART ON COMMODITY PRICES READ SIMPLY INFLATION WORRY CURRENTLY MR HYMAN IS WORKING ON UPTOTHEMINUTE SURVEYS OF BUSINESS TRENDS AMONG MANUFACTURERS AND BANKLOAN OFFICERS COMPUTERS HAVE BROUGHT A VERY CLEAR VIEW OF BUSINESS RIGHT UP TO SPEED HE SAYS MR HYMAN SAYS THE MARKET'S APPETITE FOR QUICKFIX ADVICE HAS GROWN OUT OF THE FASHION AMONG INVESTORS FOR SHORTTERM MARKET TIMING THE USE OF FINANCIAL FUTURES AND THE INCREASING INTERNATIONALIZATION OF INVESTMENTS A BIG COMMUNITY OF INVESTORS HAS A SHORTERTERM FOCUS HE SAYS ALTHOUGH SEVERAL OF MR HYMAN'S CLIENTS SAY THAT THEY WELCOME HIS INSIGHTS ON CURRENT DATA THEY HAVEN'T FOUND HIS LONGERTERM FORECASTS TO BE AHEAD OF THE PACK INDEED THE CRAZE FOR INSTANT FEEDBACK MAY DAMAGE NOT HELP INVESTORS IN THE LONG RUN SOME CRITICS SAY FOR INSTANCE KNEEJERK ANALYSIS OF LAST YEAR'S FOURTHQUARTER DATA RESULTED IN MANY OVERLY BULLISH FORECASTS FOR THIS YEAR'S ECONOMIC GROWTH AND IN FEW CORRECT CALLS ON THE PLUNGE IN INTEREST RATES WHETHER THE ECONOMY GROWS 3 OR 35 IN THE NEXT QUARTER AND WHETHER BUSINESS INVENTORIES ARE POSITIVE OR NEGATIVE OFTEN HAS NO STRUCTURAL BEARING ON THE LONGER TREND OF THE ECONOMY OR INTEREST RATES SAYS MICKEY LEVY CHIEF ECONOMIST AT NATIONSBANC CAPITAL MARKETS THEN WHY DOES MR LEVY FAX SHORT COMMENTS ON THE LATEST STATISTICS TO HIS CLIENTS THAT'S MARKETING HE SAYS 9312060076 931206 CANADA'S NEW GOVERNMENT CANCELS AIR TERMINAL PACT OTTAWA CANADIAN PRIME MINISTER JEAN CHRETIEN CANCELED A GOVERNMENT CONTRACT TO LEASE TWO TERMINALS AT TORONTO'S LESTER B PEARSON INTERNATIONAL AIRPORT TO PEARSON DEVELOPMENT CORP MR CHRETIEN SAID THE CONTRACT WAS REACHED THROUGH A FLAWED PROCESS THE CONTRACT WAS SIGNED BY THE PREVIOUS PROGRESSIVE CONSERVATIVE GOVERNMENT SEVERAL WEEKS BEFORE THE COUNTRY'S OCT 25 FEDERAL ELECTION THE AWARD PROMPTED ALLEGATIONS THAT THE CONSERVATIVE GOVERNMENT WAS REWARDING SOME INFLUENTIAL SUPPORTERS WHO HAD AN INTEREST IN PEARSON DEVELOPMENT A CLOSELY HELD CONCERN THE COMPANY DENIED THAT THE CONTRACT WAS POLITICALLY MOTIVATED PEARSON WHICH HAS THREE TERMINALS IS CANADA'S LARGEST AIRPORT ACCOUNTING FOR ABOUT ONETHIRD OF CANADA'S AIR PASSENGER TRAFFIC THE GOVERNMENT HASN'T DECIDED WHETHER TO INVITE NEW BIDS TO OPERATE THE TWO TERMINALS 9312060075 931206 LETTERS TO THE EDITOR GOVERNMENT DEFEATS ITS OWN GOOD EFFORTS IN HIS NOV 23 LETTER CRITICIZING YOUR NOV 2 EDITORIAL THE EMOTIONAL SPECIES ACT GEORGE FRAMPTON OF THE INTERIOR DEPARTMENT INJECTED UNINTENDED IRONY INTO HIS REPLY DISCUSSING THE ABILITY TO ACHIEVE A JOINT VICTORY FOR ENDANGERED SPECIES AND HUMANS HE REFERRED TO THE SOLUTION TO OVERPUMPING OF THE EDWARDS AQUIFER IN THE TEXAS CASE INTERIOR SECRETARY BRUCE BABBITT MET WITH LOCAL AND STATE OFFICIALS AND TOLD THEM THEY NEEDED A GROUNDWATER MANAGEMENT PLAN THE TEXAS LEGISLATURE CAME UP WITH A GOOD ONE PROBLEM SOLVED WELL NOT QUITE IT WAS ALSO REPORTED RECENTLY THAT THE GOOD SOLUTION TO THE EDWARDS AQUIFER PROBLEM WAS NOT GOOD ENOUGH FOR THE JUSTICE DEPARTMENT IT SEEMS THE SOLUTION VIOLATES THE VOTING RIGHTS ACT FORCING THE ISSUE BACK TO SQUARE ONE ACCORDING TO SECRETARY CISNEROS A PROPONENT OF THE SOLUTION SO WE ARE STILL WITHOUT AN EXAMPLE OF A WIN/WIN SITUATION THE FEDERAL GOVERNMENT'S HAVING VETOED ITS OWN WORTHY ATTEMPT 9312060074 931206 REVIEW & OUTLOOK EDITORIAL ASIDES COUNTING HEADS A RATHER QUIET AUTUMN QUARTER IS WINDING DOWN AT STANFORD WHICH UNDER NEW PRESIDENT GERHARD CASPER IS STUDYING HOW TO HONE THE CURRICULUM AND KEEP COSTS IN LINE CAMPUS CONSERVATIVES WHO RECENTLY HELD THEIR OWN COMING OUT DAY IN THE MAIN PLAZA HAVE A SUGGESTION THE STANFORD REVIEW COMBED THE NEW STUDENT DIRECTORY AND FOUND ALL OF THREE MAJORS IN FEMINIST STUDIES THE SCHOOL ITSELF COUNTS 12 MAJORS FOR THE PROGRAM WHICH NEVERTHELESS COSPONSORS 70 COURSES NO DOUBT EACH OF THE 70 WILL BE DEFENDED BY THEIR CREATORS AS TOO VITAL TO WESTERN CIV TO DROP IN ANY PROPOSED RATIONALIZATION OF THE CURRICULUM 9312060073 931206 SEC OFFICIAL WANTS REPOSITORY TO GIVE INVESTORS SECONDARYMARKET DISCLOSURE BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MUNICIPAL BOND INVESTORS SHOULD HAVE A NATIONAL REPOSITORY TO PROVIDE READY ACCESS TO INFORMATION THAT COULD AFFECT THE PRICE OF MUNIS IN THE SECONDARY MARKET SAID SECURITIES AND EXCHANGE COMMISSIONER RICHARD ROBERTS SAYING THE LACK OF SECONDARYMARKET DISCLOSURE POSES ONE OF THE MORE SERIOUS CUSTOMERPROTECTION PROBLEMS IN THE MUNI MARKET MR ROBERTS PROVIDED FRESH INSIGHTS ON SEC EFFORTS TO REMEDY THESE PROBLEMS IN AN ADDRESS IN NEW YORK FRIDAY COPIES OF HIS REMARKS WERE RELEASED HERE MR ROBERTS SAID THE SEC STAFF HAS BEEN WORKING FURIOUSLY TO DEVELOP AN INTERPRETATIVE RELEASE SPELLING OUT THE DISCLOSURE OBLIGATIONS OF MUNICIPAL BOND ISSUERS UNDER THE ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS WITH AN EYE TOWARD COMMISSION ACTION NO LATER THAN FEBRUARY OF NEXT YEAR HE ADDED THAT SOME RULEMAKING ACTION BY THE SEC WILL BE NEEDED TO COMPLEMENT THE INTERPRETATIVE RELEASE HIS EMBRACE OF A NATIONAL REPOSITORY FOR SECONDARYMARKET DISCLOSURE MATERIAL RESPONDS TO CONCERNS RAISED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT AND OTHERS THE MSRB WARNED THE SEC THAT ANY SECONDARYMARKET DISCLOSURE INITIATIVE WOULD FALL SHORT OF THE MARK UNLESS INVESTORS AND OTHER MARKET PARTICIPANTS HAVE READY CENTRALIZED ACCESS TO DISCLOSURE INFORMATION THE MSRB SAYS ITS MUNICIPAL SECURITIES INFORMATION LIBRARY COULD DO THE JOB THE SEC STAFF HAS SUGGESTED THE POSSIBILITY OF A RULE TO PROHIBIT DEALERS FROM RECOMMENDING OUTSTANDING MUNIS TO CUSTOMERS UNLESS THE ISSUERS OF THOSE SECURITIES AGREE TO MAKE CONTINUING DISCLOSURE OF MATERIAL FACTS RELATIVE TO THEIR BONDS THIS CAUSED THE PUBLIC SECURITIES ASSOCIATION A BOND TRADE GROUP TO FRET THAT SUCH A RULE COULD FREEZE THE SECONDARY MARKET MR ROBERTS SAID THESE CONCERNS COULD BE PARTIALLY MITIGATED BY MAKING SUCH A RULE APPLY ONLY TO FUTURE ISSUES MUNI ISSUERS ARE LARGELY EXEMPT FROM THE FEDERAL SECURITIES LAWS BUT NOT TO ANTIFRAUD PROVISIONS BY EMPHASIZING THE LEGAL DUTIES OF MUNI ISSUERS UNDER THESE PROVISIONS THE SEC WILL BE SERVING NOTICE TO STATE AND LOCAL BOND ISSUERS THAT IT INTENDS TO ENFORCE THE ANTIFRAUD PROVISIONS ON ISSUERS IF WARRANTED AND THAT IT IS BENT ON CORRECTING WHAT MR ROBERTS CALLED THE GAPING DISCLOSURE DEFICIENCY IN THE SECONDARY MUNI MARKET ON A RELATED FRONT MR ROBERTS SAID THE SEC LATER THIS MONTH IS LIKELY TO CONSIDER STEPS TO INCREASE THE AMOUNT OF SECONDARY MARKET INFORMATION AVAILABLE TO TAXEXEMPT MONEY MARKET FUNDS 9312060072 931206 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION LIGHT SAVERS USA INC AN INITIAL PUBLIC OFFERING OF 1250000 COMMON SHARES VIA WERBELROTH SECURITIES INC AND SEABOARD SECURITIES INC PEGASUS GOLD INC AND PEGASUS GOLD FINANCE CORP A SHELF OFFERING OF UP TO 150 MILLION OF DEBT SECURITIES GUARANTEES COMMON SHARES AND WARRANTS VIA GOLDMAN SACHS & CO PAGING NETWORK INC A SHELF OFFERING OF UP TO 600 MILLION OF DEBT SECURITIES VIA GOLDMAN SACHS MERRILL LYNCH & CO AND PRUDENTIAL SECURITIES INC SALOMON INC A SHELF OFFERING FOR 5 BILLION OF MEDIUMTERM NOTES VIA SALOMON BROTHERS INC 9312060071 931206 WHAT'S NEWS BUSINESS AND FINANCE TRADE TALKS BETWEEN THE US AND THE EUROPEAN COMMUNITY RAN INTO SOME UNEXPECTED ROADBLOCKS BECAUSE OF FRENCH CONCERNS ON AGRICULTURAL AND OTHER ISSUES US AND EC TRADE OFFICIALS ARE SCHEDULED TO MEET TODAY TO COMPLETE A DEAL YESTERDAY NEGOTIATORS WERE AT ODDS OVER ISSUES THEY ASSUMED HAD BEEN AGREED UPON BUT THEY FELT THEY MADE ENOUGH PROGRESS IN RESOLVING DIFFERENCES THAT A DEAL COULD STILL BE REACHED TODAY SALES OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS SURGED IN THE LAST 10 DAYS OF NOVEMBER AS THE BIG THREE CONTINUED TO RACK UP MARKETSHARE GAINS AT THE EXPENSE OF THE JAPANESE DETROIT'S BIG THREE AUTO MAKERS PLAN TO PRESENT TODAY A PROPOSAL FOR REDUCING VEHICLE EMISSIONS THAT ATTEMPTS TO PERSUADE STATES NOT TO ADOPT CALIFORNIA'S TOUGH RULES THAT FORCE THE FIRMS TO SELL ELECTRIC CARS BY 1998 PRUDENTIAL INSURANCE NOTIFIED 11 OF ITS AGENTS THAT THEY CAN NO LONGER WRITE NEW PROPERTY AND CASUALTY POLICIES IN A FURTHER STEP TO REDUCE SUCH POLICIES IN THE WAKE OF LAST YEAR'S LOSSES FROM HURRICANE ANDREW PRUDENTIAL ALSO REACHED A SETTLEMENT WITH FLORIDA TO CUT ITS MARKET SHARE THERE NATIONAL MEDICAL ENTERPRISES PLANS TO SELL ITS PHYSICAL REHABILITATION OPERATIONS TO HEALTHSOUTH REHABILITATION FOR AT LEAST 300 MILLION TO REFOCUS ON ITS CORE ACUTECARE HOSPITALS LABOR SECRETARY ROBERT REICH IS PREPARED TO TELL CONGRESS HE BACKS A CONTROVERSIAL BILL THAT WOULD FORCE COMPANIES WITH 11 OR MORE EMPLOYEES TO SET UP WORKERMANAGEMENT TEAMS TO IMPROVE WORKPLACE SAFETY MAJOR AIRLINES SLASHED DOMESTIC AIRFARES BY AS MUCH AS 35 IN AN EFFORT TO LURE WINTER TRAVELERS TEXAS INSTRUMENTS RESHUFFLED ITS TOP MANAGEMENT IN MOVES THAT ANALYSTS SAID MUDDY THE SUCCESSION WATERS AT THE ELECTRONICS CONCERN PARAMOUNT NEGOTIATED WITH TELECOMMUNICATIONS AND LIBERTY MEDIA TO JOIN FORCES TO ACQUIRE ALMOST HALF OF TURNER BROADCASTING FIVE MONTHS BEFORE AGREEING TO BE ACQUIRED BY VIACOM COURT DOCUMENTS SHOW DOW CHEMICAL AND CORNING WERE ABSOLVED BY A FEDERAL JUDGE OF LIABILITY IN FEDERAL BREASTIMPLANT LITIGATION BROUGHT AGAINST DOW CORNING A JOINT VENTURE OF THE TWO COMPANIES SONY'S PRESIDENT BRUSHED OFF CRITICISM THAT SONY HAS BEEN SLOW TO DEVELOP A MULTIMEDIAPRODUCT STRATEGY TIME WARNER'S WARNER BROS SAID IT SIGNED UP TWO BROADCAST STATION AFFILIATES AND A TRIBUNE STATION IN THE RACE TO LAUNCH A FIFTH TV NETWORK BONDS LEHMAN BROTHERS TREASURY INDEX 554359 UP 2538 COMMODITIES OIL 1497 A BARREL UP TWO CENTS DOW JONES FUTURES INDEX 13798 UP 170 SPOT INDEX 12367 UP 015 DOLLAR 10845 YEN OFF 042 17200 MARKS OFF 00025 9312060070 931206 ECONOMY ECONOMIC RECOVERY PICKING UP STEAM JOBLESS RATE SKIDS TO 64 AS FIRMS ADD WORKERS INTEREST RATES ARE KEY BY LUCINDA HARPER AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AFTER MORE THAN TWO YEARS OF SPUTTERING AND HESITATION THE US ECONOMY IS FINALLY BEGINNING TO ACT THE WAY IT'S SUPPOSED TO AMERICANS ARE BUYING CARS HOMES MICROWAVES AND VACUUM CLEANERS BUSINESSES ARE INVESTING HEAVILY IN COMPUTERS AND MACHINERY AND THE NATION'S FACTORIES ARE BEGINNING TO ADD WORKERS AFTER SEVEN MONTHS OF CUTBACKS CONSTRUCTION JOBS ARE ALSO ON THE RISE THE MAGIC ELIXIR GIVING THE ECONOMY A MUCH HEALTHIER AND MORE ROBUST STEP THE LOWEST INTEREST RATES IN MORE THAN TWO DECADES THEY ARE FINALLY KICKING IN AND STIMULATING THE SECTORS OF THE ECONOMY THAT NORMALLY LEAD RECOVERIES HOUSING AUTOS AND BUSINESS EQUIPMENT THE BOOST IN HOUSING HAS ALSO LED TO HIGHER SALES OF FURNITURE AND HOME APPLIANCES THE RESULTS ARE EMPLOYMENT GAINS IN MANY OF THESE SECTORS AND A RECOVERY THAT'S BEGINNING TO LOOK SMELL AND FEEL LIKE THE REAL THING LOW INTEREST RATES ARE ONE OF THE STRONGEST THINGS THE US ECONOMY HAS GOING FOR IT SAYS MARK OBRINSKY SENIOR ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION IN WASHINGTON MANY ECONOMISTS HAVE BOOSTED THEIR ESTIMATES FOR FOURTHQUARTER ECONOMIC GROWTH TO ABOVE 40 AT AN ANNUAL RATE IN PART BECAUSE THEY EXPECT HEADY GROWTH IN AREAS OF THE ECONOMY MOST AFFECTED BY LOW INTEREST RATES OF COURSE LOW INTEREST RATES ARE HARDLY THE PANACEA FOR ALL THE ECONOMY'S ILLS THERE ARE STILL FORMIDABLE PROBLEMS SUCH AS DEFENSE CUTBACKS AND WEAK EXPORTS COMMERCIAL REAL ESTATE IS LAGGING AND DESPITE IMPROVEMENTS IN THE LABOR MARKET JOBS REMAIN FAIRLY HARD TO COME BY AND PART OF THE FASTER GROWTH MAY NOT HAVE MUCH TO DO WITH LOW INTEREST RATES AFTER WATCHING ITS BACKLOG GROW 16 TO MORE THAN 140 MILLION AT SEPT 30 FROM JUNE 30 DIEBOLD INC REALIZED IT HAD TO INCREASE MANUFACTURING EMPLOYMENT TO CATCH UP WITH DEMAND SO IN THE PAST THREE MONTHS THE COMPANY INCREASED ITS MANUFACTURING WORK FORCE BY 16 TO ABOUT 700 SAYS SPOKESWOMAN MARY ANN JACKSON DIEBOLD MAKES AUTOMATED TELLER MACHINES ELECTRONIC AND PHYSICAL SECURITY SYSTEMS AND SOFTWARE FOR THE FINANCIAL AND COMMERCIAL MARKETS MS JACKSON SAYS LOW INTEREST RATES PLAYED A LITTLE PART IN THE COMPANY'S EXPANSION BUT LOW INTEREST RATES ARE PLAYING A BIG ROLE IN SETTING THE ECONOMY UP FOR STRONGER GROWTH ALAN BLINDER OF PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS SAYS INCREASES IN CONSUMER PURCHASES OF DURABLE OR LONGLASTING GOODS BUSINESS PURCHASES OF EQUIPMENT AND HOMEBUILDING ACCOUNT FOR ALMOST ALL OF THE GROWTH SO FAR THIS YEAR IN GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US THIS ACROSSTHEBOARD PICKUP IN ITEMS SENSITIVE TO INTEREST RATES IS QUITE NEW DESPITE THE FACT THAT RATES HAVE BEEN AT HISTORICALLY LOW LEVELS FOR MORE THAN A YEAR INTEREST RATES SEEMED TO HAVE THEIR FIRST BIG IMPACT ON BUSINESS INVESTMENT IN CAPITAL EQUIPMENT WHICH HAS BEEN GROWING AT DOUBLEDIGIT ANNUAL RATES LOW INTEREST RATES ARE CRITICAL TO BUSINESS INVESTMENT SAYS JIM MEIL MANAGER OF ECONOMIC ANALYSIS FOR AUTO COMPONENTPARTS MAKER EATON CORP IN CLEVELAND WHEN INTEREST RATES ARE HIGH MR MEIL SAYS BUSINESSES TEND TO REPAIR OLD MACHINERY ADD LABOR INSTEAD OF EQUIPMENT OR GO OUT OF BUSINESS AT AZON INC A KALAMAZOO MICH MAKER OF MACHINERY TO INSTALL WINDOWS AND DOORS CAPITAL INVESTMENT IS UP 30 FROM A YEAR AGO I GIVE A LOT OF CREDIT TO LOW INTEREST RATES SAYS AZON CHAIRMAN JAMES DUNSTAN RATES ALSO KICKED IN FAIRLY EARLY TO SPUR MORTGAGE REFINANCINGS NEXT TO COME AROUND WAS THE AUTO SECTOR AND THE FINAL LINK THE HOUSING MARKET NOW SEEMS TO BE IMPROVING AS WELL SALES OF NEW HOMES FELL SLIGHTLY IN OCTOBER BUT ARE UP ROUGHLY 10 FROM A YEAR AGO HOUSING STARTS HAVE BEEN UP FOR THE PAST THREE MONTHS AND IN OCTOBER WERE UP NEARLY 15 OVER A YEAR AGO EXISTINGHOME SALES HAVE ALSO BEEN STRONG THE CLINTON ADMINISTRATION'S ECONOMIC STRATEGY IS HEAVILY DEPENDENT ON INTEREST RATES THE ADMINISTRATION'S DEFICITREDUCTION PROGRAM IS BOUND TO RESTRAIN ECONOMIC GROWTH WHITE HOUSE ECONOMISTS FIGURE BUT THE KICK FROM LOW INTEREST RATES COULD LARGELY OFFSET THAT TO MAKE THIS STRATEGY WORK YOU NEED A BIG BANG ON INTEREST RATES EARLY MR BLINDER SAYS SO FAR SO GOOD BUT THE STRATEGY ALSO REQUIRES THAT THE ECONOMY RESPOND IN THE TRADITIONAL FASHION TO FALLING INTEREST RATES FOR A TIME IT WASN'T CLEAR THAT WAS HAPPENING PARTICULARLY IN THE HOUSING INDUSTRY THE ONE PIECE OF THE PUZZLE THAT HADN'T FALLEN INTO PLACE WAS HOUSING AND IT'S JUST IN THE LAST THREE MONTHS THAT IT HAS THAT GOES A LONG WAY TOWARDS BOLSTERING OUR CONFIDENCE MR BLINDER SAYS THE WHITE HOUSE IS PARTICULARLY PLEASED WITH THE SURGE IN PRIVATE INVESTMENT SPENDING MR BLINDER SAYS HE EXPLAINS THAT THE ADMINISTRATION WANTS TO SWITCH SPENDING AWAY FROM CONSUMPTION AND GOVERNMENT SPENDING AND TOWARDS INVESTMENT INCLUDING IN THIS PARTICULAR CONTEXT CONSUMER DURABLES AS INVESTMENT JUST WHY IT TOOK SO LONG FOR INTEREST RATES TO KICK IN IS A MYSTERY THERE ARE SOME THEORIES LYLE GRAMLEY CONSULTING ECONOMIST FOR THE MORTGAGE BANKERS ASSOCIATION SAYS THAT UNCERTAINTY ABOUT PRESIDENT CLINTON'S ECONOMIC PLAN AND THE HEALTHCARE PROPOSAL MAY BE PARTLY TO BLAME THERE HAS BEEN A RECENT RUNUP IN INTEREST RATES BUT MOST ANALYSTS DON'T THINK IT THREATENS THE PACE OF THE RECOVERY IN FACT IT MAY BE THAT THE INCREASE IN RATES IS ACTUALLY EGGING THE ECONOMY ON WITH RESPECT TO THE HOUSING MARKET PEOPLE NOW FEEL BOTTOM HAS BEEN HIT WITH LOW INTEREST RATES AND ARE NOW RUSHING IN THERE TO BUY HOMES SAYS KURT KARL OF THE WEFA GROUP IN SUBURBAN PHILADELPHIA THE UPTICK IN THE HOUSING MARKET SEEMS TO BE SPREADING QUICKLY TO INDUSTRIES THAT SUPPLY HOME PRODUCTS LEVITZ FURNITURE CORP IN BOCA RATON FLA HAD RECORD SALES IN NOVEMBER WHICH CHAIRMAN BOB ELLIOTT ATTRIBUTES TO THE HOUSING TURNAROUND WHEN YOU SELL A HOME YOU FIX IT UP AND WHEN YOU BUY ONE YOU FIX IT UP TO MEET YOUR OWN TASTES SAYS JOHN W HECHINGER JR CHAIRMAN OF HECHINGER CO A HOMEIMPROVEMENT CHAIN BASED IN LANDOVER MD NOVEMBER SALES AT HECHINGER WERE UP 24 FROM A YEAR AGO WHAT IS ENCOURAGING ABOUT ALL THIS PICKUP IN ECONOMIC ACTIVITY IS THAT IT FINALLY SEEMS TO BE HAVING AN IMPACT ON THE LABOR MARKET AS WELL DMI FURNITURE INC BASED IN LOUISVILLE KY FINDS THAT LOW INTEREST RATES ALSO HAVE BOOSTED DEMAND FOR ITS HOME AND OFFICE FURNITURE AND REDUCED THE COST OF FINANCING THE COMPANY'S CURRENT EXPANSION PROJECT SAYS JOSEPH G HILL CHIEF FINANCIAL OFFICER LOWER INTEREST RATES ARE PART OF THE REASON THAT DEMAND FOR OUR GOODS IS UP HE SAYS DMI IS EXPANDING ITS MANUFACTURING AND DISTRIBUTION OPERATIONS IN HUNTINGBURG IND TO MEET RISING DEMAND IN THE NEXT MONTH THE COMPANY WILL BEGIN HIRING WORKERS FOR THE OPERATION IT NEEDS 30 TO 35 NEW WORKERS THE COMPANY EMPLOYS ABOUT 550 PEOPLE IN ADDITION TO INCREASING EMPLOYMENT DURING NOVEMBER MANUFACTURERS BOOSTED THE AVERAGE WORKWEEK BY ONETENTH OF AN HOUR TO 417 HOURS THE HIGHEST SINCE THE END OF WORLD WAR II FACTORY OVERTIME WAS ALSO UP A TENTH OF AN HOUR A RECENT SURVEY BY THE EMPLOYMENTSERVICE COMPANY MANPOWER INC SUGGESTS CONTINUED STRENGTH IN THE FIRST QUARTER OF NEXT YEAR THE STRONGEST SECTORS THE REPORT FOUND ARE DURABLEGOODS MANUFACTURING AND FINANCE INSURANCE AND REAL ESTATE THESE ARE TWO KEY INDUSTRIES THAT OFTEN FUEL FOLLOWUP ACTIVITY IN OTHER SECTORS SAYS MANPOWER PRESIDENT MITCHELL FROMSTEIN IN OTHER ECONOMIC NEWS THE JOINT ECONOMIC COMMITTEE TOLD THE LABOR DEPARTMENT THAT ITS PLAN TO SWITCH TO A NEW HOUSEHOLD JOBLESS SURVEY AND NOT CONTINUE THE OLD ONE AS A COMPARISON IS UNACCEPTABLE THE NEW SURVEY WHICH IS MEANT TO CALCULATE UNEMPLOYMENT MORE ACCURATELY THROUGH THE USE OF COMPUTERS AND A REVAMPED QUESTIONNAIRE IS TO BE USED BEGINNING WITH THE JANUARY 1994 UNEMPLOYMENT REPORT DEPARTMENT ANALYSTS SAY THE NEW SURVEY WILL LIKELY PRODUCE A HIGHER UNEMPLOYMENT RATE IT WILL ALSO MAKE IT DIFFICULT FOR ECONOMISTS TO COMPARE LABORMARKET CONDITIONS BEFORE 1993 WITH THOSE AFTER 1993 KATHARINE ABRAHAM COMMISSIONER OF LABOR STATISTICS SAID THE DEPARTMENT DOES NOT HAVE THE BUDGET TO CONDUCT BOTH THE NEW AND OLD SURVEYS AND THAT THE PART OF THE JOBS REPORT BASED ON BUSINESS PAYROLL DATA WON'T CHANGE MUCH THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS INTENDED TO GAUGE THE HEALTH OF THE ECONOMY ROSE 05 IN OCTOBER AFTER A 02 GAIN IN SEPTEMBER NINE OF THE 11 INDICATORS MAKING UP THE INDEX GAVE IT A BOOST THE MONEY SUPPLY AND A STATISTIC BASED ON LATE DELIVERIES ROUNDED TO ZERO WEIGHED IT DOWN THE DEPARTMENT IS NOW USING A NEW SYSTEM IN WHICH EACH INDICATOR HAS A SLIGHTLY DIFFERENT WEIGHT THAN UNDER THE OLD WAY TO COMPUTE THE LEADING INDEX AT BUSINESSCYCLE PEAKS THE AVERAGE LEAD TIME IS 116 MONTHS UNDER THE NEW SYSTEM COMPARED WITH 83 MONTHS UNDER THE OLD SYSTEM AT TROUGHS THE NEW LEAD TIME IS 31 MONTHS COMPARED WITH 42 MONTHS IN THE OLD METHOD THE COMMERCE DEPARTMENT ALSO SAID FACTORY ORDERS FOR MANUFACTURED GOODS ROSE 12 TO 25839 BILLION IN OCTOBER AFTER A 07 RISE IN SEPTEMBER DURABLEGOODS ORDERS ROSE A STRONG 26 WHILE ORDERS FOR NONDURABLE GOODS FELL SLIGHTLY ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 05 RISE IN THE INDEX FOR OCTOBER AND A 02 RISE FOR SEPTEMBER THE SEASONALLY ADJUSTED INDEX NUMBERS 1987=100 FOR OCTOBER AND THE CHANGE FROM SEPTEMBER ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 114 UP FROM 113 IN THE PREVIOUS MONTH 9312060069 931206 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CRA FINANCE LTD 300 MILLION TWOPART ISSUE OF GUARANTEED NOTES ACCORDING TO MCM CORPORATEWATCH THE FIRST PART 200 MILLION IN NOTES DUE DEC 1 2003 WAS PRICED AT 9985 TO YIELD 652 A SPREAD OF 73 BASIS POINTS ABOVE TREASURYS THE SECOND PART 100 MILLION IN NOTES DUE DEC 1 2013 WAS PRICED AT 9942 TO YIELD 718 A SPREAD OF 75 BASIS POINTS ABOVE COMPARABLE TREASURYS BOTH PARTS ARE NONCALLABLE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FARMERS & MECHANICS BANK 1653125 COMMON SHARES SOLD AT 10 APIECE ACCORDING TO THE COMPANY THE BANK IS IN THE PROCESS OF CONVERTING FROM MUTUAL TO STOCK OWNERSHIP HAMBURG GERMAN MUNICIPALITY 100 MILLION MARKS OF STEPUP BONDS DUE JAN 7 2014 AT ISSUE PRICE 1014 VIA TRINKAUS & BURKHARDT KGAA COUPON 6 FIRST 10 YEARS 7 THEREAFTER PUT OPTION EXERCISABLE AT PAR ON 2004 AND 2013 INTEREST PAYMENT DATE FEES 25 JG SUMMIT CAYMAN LTD PHILIPPINES PARENT 260 MILLION OF CONVERTIBLE EUROBONDS DUE DEC 23 2003 AT ISSUE PRICE PAR VIA SALOMON BROTHERS INDICATED COUPON 35 TO 375 BONDS CONVERTIBLE INTO CLASS B SHARES OF PARENT COMPANY JG SUMMIT HOLDINGS INC AT INDICATED PREMIUM 10 TO 15 FROM MARCH 1994 TO NOVEMBER 2003 TERMS TO BE FIXED THIS WEEK BONDS CALLABLE FROM DECEMBER 1996 AT PAR SUBJECT TO SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE FOR 30 CONSECUTIVE DAYS GUARANTOR PARENT FEES 25 MOBIL AUSTRALIA FINANCE CO US PARENT 100 MILLION SWISS FRANCS OF PUBLIC BONDS DUE JAN 27 1999 PRICED AT 1004 COUPON SIXMONTH SWISS FRANC LONDON INTERBANK OFFERED RATE LESS 01875 VIA SWISS BANK CORP NICHIMEN CORP JAPAN 10 BILLION YEN OF REVERSECOUPON FLOATINGRATE EURONOTES DUE MARCH 17 1998 AT ISSUE PRICE 101595 VIA SANWA INTERNATIONAL PLC REOFFERED AT 10027 ANNUAL COUPON 275 UNTIL MARCH 17 1997 THEREAFTER SEMIANNUAL COUPON OF SIXMONTH YEN LIBOR LESS 0125 POINT PUT OPTION EXERCISABLE IN MARCH 1997 AT PAR FEES 1625 9312060068 931206 TECHNOLOGY EPA MOVES TO HALT SALES OF 4 METREX GERM KILLERS WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY HALTED SALES OF FOUR MEDICAL STERILIZATION SOLUTIONS MANUFACTURED BY METREX RESEARCH CORP PARKER COLO THE SOLUTIONS ARE USED TO DESTROY BACTERIA SPORES FUNGI AND VIRUSES ON MEDICAL EQUIPMENT IN DOCTORS' OFFICES THEY ARE METRICIDE ACTIVATED DIALDEHYDE SOLUTION METRICIDE PLUS 14 METRICIDE PLUS 28 AND METRICIDE PLUS 30 ACCORDING TO THE EPA THESE PRODUCTS REPRESENT 15 TO 25 OF THE MARKET FOR MEDICAL STERILIZATION SOLUTIONS THE EPA SAID IT TOOK THE ACTION BECAUSE THE SOLUTIONS FAILED EFFICACY TESTS CONDUCTED BY THE FOOD AND DRUG ADMINISTRATION THE EPA REGULATES MEDICAL STERILIZATION SOLUTIONS UNDER THE FEDERAL INSECTICIDE FUNGICIDE AND RODENTICIDE ACT THE AGENCY SAID IT CALLED FOR THE HALT IN SALES ONLY AFTER THE METREX CORP UNIT DECLINED TO PERFORM A VOLUNTARY RECALL IN A STATEMENT ISSUED FRIDAY METREX SAID IT REGRETS THIS MISUNDERSTANDING WITH THE EPA AND IS PRESENTLY WORKING WITH THE AGENCY TO RESOLVE THEIR DIFFERENCES THE COMPANY ALSO SAID IT HAD RECENTLY SUBMITTED NEW TEST DATA TO THE AGENCY AND BELIEVES THAT ALL OUTSTANDING ISSUES CAN BE RESOLVED QUICKLY 9312060067 931206 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SPAIN'S CABINET APPROVED DRAFT LAWS AND A DECREE AIMED AT EASING RIGID LABOR REGULATIONS WHILE UNIONS THREATENED A GENERAL STRIKE NEXT MONTH TO PROTEST THE REFORMS AND A CIVIL SERVANTS' PAY FREEZE THE GOVERNMENT WANTS TO CUT THE UNEMPLOYMENT RATE NOW 23 AND MAKE THE LABOR MARKET ADAPTABLE TO MEET NEEDS OF BUSINESS AND WORKERS SUCH AS WOMEN TRYING TO ENTER THE WORK FORCE THE LEGISLATION SENT TO PARLIAMENT WOULD END THE GOVERNMENT MONOPOLY ON JOB PLACEMENTS FOR THE UNEMPLOYED EXPAND CRITERIA FOR LAYOFFS LOOSEN COLLECTIVE BARGAINING AND EASE CURBS ON JOB CLASSIFICATIONS THE DECREE WHICH TAKES EFFECT TOMORROW ALLOWS APPRENTICESHIPS FOR YOUNG WORKERS AND PARTTIME CONTRACTS UNION PROTESTS BROKE UP NEGOTIATIONS WITH THE GOVERNMENT AND EMPLOYERS ON THE REFORMS AND A THREEYEAR WAGE MODERATION POLICY BUSINESSES TOO CRITICIZED THE REFORMS SAYING THEY DIDN'T GO FAR ENOUGH RUSSIA AND BELARUS AGREED TO MERGE THEIR MONETARY SYSTEMS STARTING JAN 1 BELARUS WAS ONE OF FIVE FORMER SOVIET REPUBLICS THAT AGREED IN SEPTEMBER TO FORM A MONETARY UNION WITH RUSSIA BASED ON THE RUBLE BUT THREE OF THEM COULDN'T MEET DEMANDING TERMS ON ECONOMIC STABILIZATION AND REFORMS AND INTRODUCED THEIR OWN NEW CURRENCIES BELARUS USES A TEMPORARY CURRENCY CALLED THE PAYMENT CERTIFICATE BELARUS AND RUSSIA ALSO WILL REMOVE ALL CUSTOMS BARRIERS ON THEIR SHARED BORDER BY DEC 15 TO FOSTER CLOSER ECONOMIC UNION THE CZECH PARLIAMENT ABOLISHED THE 75YEAROLD STATE MONOPOLY ON TOBACCO PRODUCTS AND BANNED ADVERTISING THEM LAWMAKERS OPENED CIGARETTE PRODUCTION TO ANY CZECH OR FOREIGN ENTERPRISE THAT GETS A LICENSE STARTING JAN 1 ALL DOMESTIC AND IMPORTED CIGARETTE PACKS MUST BEAR GOVERNMENTISSUED STAMPS SINCE THE LATE 18TH CENTURY CENTRAL EUROPEAN COUNTRIES TRADITIONALLY RESERVED THE SECTOR FOR THE STATE THE CZECH BAN ON PROMOTING TOBACCO PRODUCTS APPLIES TO BILLBOARDS THE MEDIA MOVIE THEATERS AND PUBLIC TRANSIT TURKMENISTAN LAUNCHED A PROGRAM TO PUT OWNERSHIP OF STATE COMPANIES IN PRIVATE HANDS AND ATTRACT FOREIGN INVESTMENT TO THE FORMER SOVIET REPUBLIC THE SELLOFFS WILL BEGIN WITH SMALL SHOPS AND RESTAURANTS AND UNFINISHED CONSTRUCTION PROJECTS COULD BE OFFERED PREFERENCE WILL BE GIVEN TO JOINT VENTURES WITH FOREIGN PARTICIPATION ECONOMIC REFORM HAS BEEN SLOW AND OUTPUT HAS PLUNGED IN THE CENTRAL ASIAN REPUBLIC ALMOST 90 OF WHICH IS DESERT MOST OF THE ECONOMY IS LINKED TO AGRICULTURE OIL AND NATURAL GAS AS THE VAST MAJORITY OF ROMANIANS HAVE NEVER HEARD OF A MUTUAL FUND THE MANAGER OF THE COUNTRY'S FIRST FUND SAID HE HOPES IT CAN CONTRIBUTE TO DEVELOPMENT OF A CAPITAL MARKET AND CHANNEL SAVINGS INTO PRODUCTIVE INVESTMENTS THE MUTUAL FUND OF BUSINESS PEOPLE IS ADMINISTERED BY THE SAFI SA INVESTMENT FIRM MANAGED BY GEORGE DANIELESCU A FORMER ROMANIAN FINANCE AND INDUSTRY MINISTER THE FUND PLANS TO SERVE INDIVIDUALS AND COMPANIES OFFER LOWINTEREST LOANS AND ADVISE ON AVAILABLE CAPITAL SOURCES AND EVENTUALLY TO OPERATE ON THE MONEY MARKET MORE THAN 5900 OR 20 OF LEBANON'S CIVIL SERVANTS HAVE BEEN DISMISSED IN AN UNPRECEDENTED GOVERNMENT PURGE BECAUSE OF WIDESPREAD CORRUPTION IN LEBANON INTERNATIONAL DONORS HAVE BEEN RELUCTANT TO PROVIDE AID FOR REBUILDING THE COUNTRY AND ITS ECONOMY RAVAGED BY CIVIL WAR FROM 197590 PRIME MINISTER RAFIK HARIRI SAID 1805 GOVERNMENT EMPLOYEES WERE FIRED FOR UNJUSTIFIABLY PROLONGED ABSENCES MANY FLED DURING THE WAR BUT REMAINED ON THE GOVERNMENT PAYROLL OFFICIALS SAID 700 WORKERS WERE LET GO FOR ALLEGEDLY TAKING BRIBES AND 3400 RESIGNED TO ESCAPE CORRUPTION INVESTIGATIONS JAPANESE EXECUTIVES ARE SNAPPING UP A COMIC BOOK THAT EXPLAINS HOW TO DEAL PROPERLY WITH GANGSTERS THE COMIC BOOK CONTAINS NINE STORIES ABOUT ILLEGAL SCHEMES THAT GANGSTERS AND ORGANIZEDCRIME SYNDICATES USE FOR EXAMPLE ONE STORY CONCERNS A SPECULATOR WHO IS BACKED BY AN ILLEGAL SYNDICATE AND ASKS A COMPANY TO BUY BACK ITS OWN STOCK AT UNREASONABLY HIGH PRICES THE BOOK DESCRIBES HOW PEOPLE MAY USE THE LAW TO PROTECT THEMSELVES AND SPECIFIES ACTIONS UNDER ITS PROVISIONS THE LAW ALLOWS AUTHORITIES TO DESIGNATE ANY GROUP AS AN ORGANIZEDCRIME GANG IF A CERTAIN NUMBER OF ITS MEMBERS HAVE CRIMINAL RECORDS IT ALSO PROVIDES FOR CLAMPDOWNS ON NONVIOLENT CRIMINAL ACTS SUCH AS COERCION LOANSHARKING INTERVENTION IN CIVIL SUITS ILLICIT GAMBLING AND BLACKMAIL RUSSIA'S BIRTH RATE DROPPED 12 LAST YEAR TO AN AVERAGE OF 14 CHILDREN PER WOMAN FAR BELOW THE 216 RATE NEEDED FOR POPULATION STABILITY OFFICIALS CITED UNCERTAINTY ABOUT MARKET REFORMS POVERTY AND WORSENING PUBLIC HEALTH TO COUNTER WESTERN CRITICS CHINA EARLY NEXT YEAR WILL BEGIN PUBLISHING A MONTHLY MAGAZINE LAUDING THE COUNTRY'S HUMANRIGHTS ACHIEVEMENTS THE HONG KONG NEWSPAPER MING PAO SAID THE US HAS LINKED RENEWAL OF CHINA'S PREFERENTIAL TRADE STATUS NEXT YEAR TO IMPROVED HUMAN RIGHTS 9312060066 931206 MERRILL INVESTORS ACCEPT SETTLEMENT AND HEAVY LOSSES BULK OF CLASSACTION PLAINTIFFS QUIT THEIR COURT FIGHT OVER SOURED PARTNERSHIP BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL BOCA RATON FLA MANY MERRILL LYNCH & CO INVESTORS WITH SOURED LIMITED PARTNERSHIPS SEEM TO BE WILLING TO SWALLOW BIG LOSSES RATHER THAN CONTINUE TO BATTLE THE BIG BROKERAGE FIRM IN COURT ROUGHLY 85 OF INVESTORS IN A CLASSACTION SUIT AGAINST MERRILL HAVE ACCEPTED A PROPOSED SETTLEMENT THAT OFFERS THEM ON AVERAGE JUST TWO CENTS FOR EACH DOLLAR THEY INVESTED IN THE PARTNERSHIPS PEOPLE FAMILIAR WITH THE CASE SAID ACCEPTING THE SETTLEMENT BARS INVESTORS FROM FILING SIMILAR CLAIMS AGAINST MERRILL IN THE FUTURE LAST MONTH MERRILL OFFERED TO SETTLE THE SUIT FILED IN A CHICAGO FEDERAL COURT BY 16500 INVESTORS IN ARVIDA/JMB PARTNERS LPII A 234 MILLION PARTNERSHIP THAT BOUGHT RAW LAND TO DEVELOP HOMES INVESTORS HAD UNTIL DEC 1 TO OPT OUT OF THE SETTLEMENT WHICH OFFERED 6 MILLION BEFORE ATTORNEY'S FEES ONLY 15 TO 17 OF THEM OPTED OUT THE PEOPLE FAMILIAR WITH THE CASE SAID THE SETTLEMENT RESULTS STUNNED PLAINTIFFS' ATTORNEYS WHO HAD AGGRESSIVELY URGED INVESTORS TO OPT OUT IT'S PITIFUL IT REALLY IS SAYS MICHAEL CRIDEN A MIAMI LAWYER REPRESENTING CLIENTS WITH PARTNERSHIP CLAIMS AGAINST MERRILL DESPITE LOSING THE BULK OF THEIR INITIAL INVESTMENT IN THE ARVIDA II PARTNERSHIP SOME INVESTORS TOLD MR CRIDEN IT'S NOT WORTH THE AGGRAVATION MERRILL HAS BEEN GOOD TO ME THE LAWYER SAID BIG BROKERAGE FIRMS INCREASINGLY ARE WORRIED ABOUT LIABILITY FROM SOURED PARTNERSHIPS IN THE WAKE OF A RECENT REGULATORY SETTLEMENT BY PRUDENTIAL SECURITIES INC THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT AS REPORTED AGREED IN OCTOBER TO PAY AT LEAST 371 MILLION TO SETTLE FEDERAL AND STATE ALLEGATIONS THAT INVESTORS WERE MISLED INTO BUYING PARTNERSHIPS IN THE 1980S BUT JOHN L STEFFENS MERRILL'S BROKERAGE CHIEF SAYS THE FIRM ISN'T PARTICULARLY WORRIED ABOUT ITS EXPOSURE HE SAYS MERRILL STOPPED MARKETING LEVERAGED PARTNERSHIP DEALS AS EARLY AS 1983 MR STEFFENS DECLINED TO SAY HOW MANY PARTNERSHIP SUITS MERRILL FACES OR HOW MUCH IT HAS PAID OUT IN SETTLEMENTS PROBABLY WITH THE EXCEPTION OF ARVIDA II WE DON'T HAVE A HECK OF A LOT OF PROBLEMS WITH SOURED PARTNERSHIPS HE SAID WE DON'T BELIEVE WE HAVE ANY SIGNIFICANT LIABILITY INVESTORS HAVE RECEIVED JUST 20 IN DISTRIBUTIONS FOR EACH 1000 UNIT SINCE THE ARVIDA II PARTNERSHIP WAS LAUNCHED IN 1989 IT APPEARS UNLIKELY THAT THE LIMITED PARTNERS WILL RECOVER MUCH IF ANY OF THEIR CAPITAL INVESTMENT IN THE PARTNERSHIP ACCORDING TO A NOTICE MAILED TO INVESTORS IN APRIL BESIDES THE 6 MILLION SETTLEMENT MERRILL AND JMB REALTY CORP WHOSE ARVIDA CO AFFILIATE WAS THE DEVELOPER OF THE PROPERTIES ARE OFFERING TO DEFER SOME MANAGEMENT FEES THE CASH PORTION OF THE SETTLEMENT COMES TO ABOUT 4 MILLION AFTER ATTORNEY'S FEES IN THE CLASSACTION COMPLAINT INVESTORS ALLEGED THAT BECAUSE OF THE LURE OF OVER 20 MILLION IN SELLING COMMISSIONS MERRILL LYNCH IGNORED THE COLLAPSING REALESTATE MARKET AND SIGNED ON TO BE THE SELLING AGENT FOR THE PARTNERSHIP MERRILL HAS VIGOROUSLY DENIED THE ALLEGATIONS THE BULK OF THE PARTNERSHIP'S LOSSES STEMMED FROM A BIG RESIDENTIAL PROPERTY PLANNED FOR ORANGE COUNTY CALIF JUST BEFORE THE CALIFORNIA REALESTATE CRASH A FINAL TALLY ON THE NUMBER OF INVESTORS WHO HAVE OPTED OUT OF THE ARVIDA SETTLEMENT IS EXPECTED TO BE COMPLETED THIS WEEK A HEARING TO DETERMINE THE FAIRNESS OF THE PLANNED SETTLEMENT IS SET FOR LATER THIS MONTH IN THE CHICAGO FEDERAL COURT 9312060065 931206 FOREIGN EXCHANGE CANADIAN DOLLAR'S OUTLOOK APPEARS BRIGHT DESPITE POLICY BUDGET PRESSURES BY ANDREW WILLIS AND DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK ALTHOUGH BUDGET WOES AND POLICY DOUBTS CONTINUE TO WEIGH ON THE CANADIAN DOLLAR SOME ANALYSTS SAY THE OUTLOOK FOR THE CURRENCY IS BRIGHTENING EVEN BULLISH ANALYSTS ACKNOWLEDGE THE DIFFICULTY OF CUTTING CANADA'S FEDERAL AND PROVINCIAL BUDGET DEFICITS AND THEY AGREE THAT THE NEW LIBERAL GOVERNMENT HASN'T PROVED ITS FISCAL AND MONETARY FORTITUDE BUT THE BUDGET ANGST PREVAILING IN CURRENCY MARKETS IS OVERDONE THEY SAY ECONOMIC GROWTH SHOULD TAKE SOME PRESSURE OFF THE BUDGETS THEY CONTEND AND FOREIGN INVESTORS CONTINUE TO BUY UP CANADIAN BONDS SUPPORTING THE CURRENCY THE CANADIAN DOLLAR COULD COME UNDER NEARTERM PRESSURE AS WE HIT BUDGET SEASON IN EARLY 1994 BUT THE LONGTERM FUNDAMENTALS CALL FOR AN APPRECIATION IN THE CURRENCY SAYS JOHN JOHNSON SENIOR ECONOMIST AT ROYAL BANK OF CANADA IN TORONTO FRIDAY'S EMPLOYMENT DATA HELPED CONFIRM A PICTURE OF AN ECONOMY RETURNING TO HEALTH ANALYSTS SAY CANADA'S NOVEMBER EMPLOYMENT ROSE BY 59000 AND THE EVEN DISTRIBUTION OF THE INCREASE AMONG PARTTIME AND FULLTIME JOBS MEN AND WOMEN AND MANUFACTURING AND SERVICE SECTORS POINTS TO A BROADBASED IMPROVEMENT SAYS ANITA LAURIA ECONOMIST AT SALOMON BROTHERS INC GAINS IN MANUFACTURERS' SHIPMENTS AND A RISE IN CANADA'S MERCHANDISE TRADE SURPLUS ALSO BODE WELL FOR THE ECONOMY MS LAURIA SAYS CYCLICAL IMPROVEMENT IN THE ECONOMY SHOULD HELP THE FISCAL OUTLOOK SAYS MR JOHNSON WE BELIEVE FINANCE MINISTER PAUL MARTIN'S TARGET OF A 25 BILLION CANADIAN DEFICIT IN 199697 A DEFICIT THAT WOULD BE 3 OF GDP IS STILL ACHIEVABLE HE SAYS THE DEFICIT FOR THE FISCAL YEAR ENDED MARCH 1994 IS ESTIMATED AT C46 BILLION 345 BILLION SOME ANALYSTS ARE MORE CAUTIOUS THE FISCAL SITUATION IS EXTREMELY UNSETTLING SAYS CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORK CONSULTING FIRM HE NOTES THAT PROVINCIAL DEBT WHICH AMOUNTS TO ONETHIRD OF THE TOTAL DEBT IS BEYOND THE CONTROL OF THE FEDERAL GOVERNMENT IT RAISES QUESTIONS OF CREDITWORTHINESS HE SAYS THOSE CONCERNS MAY INTENSIFY AS THE FEBRUARY BUDGET ANNOUNCEMENT APPROACHES BUT THIS YEAR FOREIGN INVESTORS HAVE GIVEN CANADIAN BONDS A VOTE OF CONFIDENCE FOREIGN PURCHASES OF CANADIAN SECURITIES HIT C458 BILLION IN THE FIRST NINE MONTHS OF 1993 THREE TIMES THE VOLUME OF THE EQUIVALENT PERIOD IN 1992 IN SEPTEMBER FOREIGN HOLDINGS OF CANADIAN DEBT HIT AN ALLTIME HIGH OF C2718 BILLION LOW INFLATION A GRADUALLY IMPROVING TRADE BALANCE AND COMMODITY PRICES THAT APPEAR POISED TO RISE ALL SUPPORT BOTH THE CANADIAN CURRENCY AND BOND MARKETS MR JOHNSON SAYS AND OVERSEAS BUYERS CONTINUE TO LINE UP FOR CANADIAN DEBT IN THE PAST TWO WEEKS ONTARIO HAS ISSUED 12 BILLION MARKS 6966 MILLION OF 10YEAR EUROBONDS AND C750 MILLION OF 30YEAR BONDS BOTH AT HISTORICALLY LOW SPREADS TO CANADA'S GOVERNMENT BONDS DESPITE HAVING BEEN ISSUED ON THE HEELS OF A PROVINCIAL CREDIT DOWNGRADE EVEN REVELATION OF A SOARING FEDERAL DEFICIT DIDN'T WRECK THE PARTY FINANCE MINISTER MARTIN'S ANNOUNCEMENT LAST MONDAY THAT THE FISCAL 1994 DEFICIT WAS C134 BILLION LARGER THAN THE APRIL PROJECTION DIDN'T DAMP ENTHUSIASM AT WEDNESDAY'S AUCTION OF C25 BILLION OF FEDERAL THREEYEAR BONDS THE FINANCING DREW FOREIGN AS WELL AS DOMESTIC INTEREST WITH THE 002POINT SPREAD BETWEEN HIGH AND LOW BIDS REFLECTING STRONG DEMAND BOND TRADERS SAID FOREIGN TOLERANCE OF CANADA'S FREESPENDING WAYS IS DUE IN PART TO THE FACT THAT THE COUNTRY IS NOT ALONE IN RUNNING BUDGET DEFICITS ANALYSTS SAY GERMANY'S PUBLICSECTOR BUDGET DEFICIT WILL HIT 160 BILLION MARKS FOR THE CURRENT FISCAL YEAR MORE THAN 5 OF GDP NOTES ECONOMIST PATTI CROFT OF WOOD GUNDY INC IN TORONTO WHO SEES THE FOUR LARGEST EUROPEAN ECONOMIES TURNING IN DEFICITS THAT AVERAGE 7 OF GDP FOR FISCAL 199394 ABOVE THE 63 OF GDP ESTIMATED FOR CANADA AND THE 40 FOR THE US WOOD GUNDY CALLS FOR A C125 EXCHANGE RATE IN LATE 1994 COMPARED WITH THE CURRENT C133 ROYAL BANK'S CALL IS FOR C126 BY LATE 1994 MANY TRADERS HOWEVER EXPECT TO SEE A RATE OF C135 WITHIN THE NEXT THREE MONTHS IN THE NEAR TERM UNCERTAINTY ABOUT THE REAPPOINTMENT OF BANK OF CANADA GOVERNOR JOHN CROW WILL KEEP PRESSURE ON THE CURRENCY ANALYSTS AGREE AND NERVOUSNESS ABOUT THE GOVERNMENT'S FISCAL POLICIES WILL REACH A PITCH AS THE FEBRUARY BUDGET APPROACHES THEY SAY LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT C13286 DOWN FROM C13305 LATE THURSDAY THE DOLLAR ALSO TRADED AT 17200 MARKS AND 10845 YEN COMPARED WITH 17225 MARKS AND 10887 YEN THURSDAY ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10845 YEN AND AT 17153 MARKS 9312060064 931206 COMMODITIES COFFEE FUTURES ARE DRIFTING AS TRADERS SEEK BETTER INDICATION OF HOW NEW CARTEL WILL FARE BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON COFFEE FUTURES PRICES ARE HOVERING IN NO MAN'S LAND AS TRADERS AWAIT DEFINITIVE INDICATIONS OF WHETHER A NEWLY FORMED CARTEL WILL SUCCEED OR FLOUNDER COFFEE FOR MARCH DELIVERY SURGED TO A PEAK OF 85 CENTS A POUND IN SEPTEMBER FROM 65 CENTS EARLIER THIS YEAR IN ANTICIPATION OF THE FORMATION OF THE CARTEL THE ASSOCIATION OF COFFEE PRODUCING COUNTRIES ON OCT 1 PRODUCERS FROM LATIN AMERICA AFRICA AND ASIA BEGAN WITHHOLDING 20 OF THEIR USUAL EXPORTS FROM WORLD MARKETS DURING MONTHS WHEN AVERAGE PRICES ARE BELOW 80 CENTS A POUND THE CARTEL INTENDS TO RAISE PRICES WELL ABOVE 80 CENTS A POUND BRAZILIAN OFFICIALS HAVE SAID ONCE THE TARGET IS REACHED IT INTENDS TO RELEASE MORE SUPPLIES YET SINCE THE EXPORTLIMITING AGREEMENT TOOK EFFECT THE MARCH COFFEE FUTURES CONTRACT HAS FALLEN INSTEAD TAPERING OFF TO FRIDAY'S SETTLING PRICE OF 7760 A POUND THE REASON FOR THE DECLINE ANALYSTS SAY IS THAT THE MARKET IS SKEPTICAL ABOUT THE UNITY OF COFFEE PRODUCERS WHICH HAVE A HISTORY OF FLOODING WORLD MARKETS WITH EXPORTS WHENEVER PRICES RISE NEW YORK FUTURES PRICES ARE RANGETRADING BETWEEN 75 AND 80 CENTS A POUND BECAUSE OF THE UNCERTAINTY SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH YET OTHER ANALYSTS NOTE THAT THE EXPORTLIMITING AGREEMENT IS SUCCEEDING IN CURTAILING WORLD SUPPLIES OF COFFEE DESPITE MARKET CYNICISM COFFEE EXPORTS ARE FALLING SAYS PETER GREENHALGH DIRECTOR OF COFFEE RESEARCH AT LANDELL MILLS COMMODITIES STUDIES LTD A BRITISH CONSULTING FIRM IN OCTOBER AND NOVEMBER MONTHLY EXPORTS AVERAGED 488 MILLION BAGS EACH CONTAINING 132 POUNDS OF COFFEE HE SAYS THIS COMPARES WITH MONTHLY AVERAGES OF 62 MILLION BAGS IN THE FIRST NINE MONTHS AND 65 MILLION LAST YEAR WE ARE AT LAST WITNESSING HIGHER CONSUMPTION THAN EXPORTS AND CONSUMER STOCKS ARE SLIDING MR GREENHALGH SAYS FOR THE MOMENT INVENTORIES ARE MORE THAN ADEQUATE TO MEET DEMAND EVEN THOUGH WORLD CONSUMPTION EXCEEDED OUTPUT FOR THREE YEARS RUNNING HE SAYS THE MAJOR QUESTION AFFECTING THE PRICE OF COFFEE HE ADDS IS WHETHER EXPORTS WILL CONTINUE TO FALL A LARGE DEFICIT BETWEEN EXPORTS AND CONSUMPTION WILL REDUCE CONSUMER STOCKS SWIFTLY AND BOOST PRICES MR GREENHALGH SAYS MEANWHILE THE MARKET IS FOCUSING ITS ATTENTION ON THE EXPORTLIMITING EFFORTS OF BRAZIL THE WORLD'S LARGEST COFFEE PRODUCER SAYS NEIL ROSSER AN ANALYST AT ED&F MAN COFFEE LTD BRAZIL'S EXPORT WITHHOLDINGS IN OCTOBER AND NOVEMBER WERE ONLY A THIRD OF WHAT THEY SHOULD HAVE BEEN UNDER THE EXPORTLIMITING AGREEMENT THIS SCUTTLED THE PSYCHOLOGICAL ADVANTAGE OF PRODUCERS MR ROSSER SAYS THE MARKET IGNORED THE EXPORTLIMITING PROGRESS IN COLOMBIA WHICH WITHHELD 400000 BAGS AND LOWER SHIPMENTS FROM CENTRAL AMERICA AND AFRICA HE SAYS THE CARTEL WILL HOLD IF THE MAJOR PRODUCERS BRAZIL AND COLOMBIA LEAD THE WAY AND RETAIN COFFEE SAYS LAWRENCE EAGLES COMMODITY ANALYST AT LONDON BROKERAGE FIRM GNI LTD MR EAGLES CONTENDS THAT IN THE FIRST QUARTER NEXT YEAR BRAZILIAN SHIPMENTS WILL BE SHARPLY LOWER THE BRAZILIANS ARE INVOLVED IN A WILY SCHEME WHERE FARMERS WILL REPAY LOANS FROM THE GOVERNMENT WITH COFFEE HE SAYS AS A RESULT HE PREDICTS THE NATION WILL BEGIN TO WITHHOLD MORE COFFEE AND PRICES WILL RISE NEXT YEAR NEVERTHELESS OTHERS INSIST IT WILL BE DIFFICULT TO MONITOR PRODUCERS AND COFFEE COULD LEAK ONTO THE MARKET EXCEPT FOR THE US CONSUMING NATIONS DON'T SEEM WORRIED ABOUT THE CARTEL MAINLY BECAUSE PRICES ARE FAR BELOW LEVELS SEEN IN THE 1980S REFLECTING ITS CONCERNS THE US THE WORLD'S BIGGEST COFFEE CONSUMER QUIT THE INTERNATIONAL COFFEE ORGANIZATION WHICH REPRESENTS PRODUCING AND CONSUMING NATIONS THERE WAS GREAT DISAPPOINTMENT ABOUT THE US WITHDRAWAL BECAUSE IT WAS ONE OF THE FOUNDING MEMBERS OF THE ICO SAYS VALDEMAR LEAO BRAZIL'S LONDON COFFEE REPRESENTATIVE THE NEW EXPORTLIMITING CARTEL WAS FORMED AFTER AN ICO AGREEMENT TO STABILIZE PRICES WITHIN SPECIFIED RANGES COLLAPSED THIS YEAR SINCE IT WAS AN EMERGENCY PRODUCERS NEEDED TO PROTECT THEIR OWN INTERESTS MR LEAO SAYS THIS WEEK KEY MEMBERS OF THE ICO WILL MEET TO DECIDE WHETHER THE ORGANIZATION SHOULD BE REDUCED TO A MERE ADMINISTRATIVE AND STATISTICAL BODY SIMILAR TO WHEAT AND SUGAR ORGANIZATIONS THE US COFFEE TRADE HOLDS DIFFERING VIEWS ABOUT THE US PULLOUT FROM THE ICO GEORGE BOECKLIN PRESIDENT OF THE NATIONAL COFFEE ASSOCIATION WHICH REPRESENTS US MANUFACTURERS AND MULTINATIONAL CORPORATIONS SAYS HIS MEMBERS FAVOR AN UNFETTERED MARKET YET TED LINGLE DIRECTOR OF THE SPECIALITY COFFEE ASSOCIATION OF AMERICA ASSERTS THAT THE WITHDRAWAL WAS A MISTAKE HE BELIEVES THE US SHOULD ACTIVELY PARTICIPATE IN THE ICO TO IMPROVE TRADE RELATIONS PARTICULARLY WITH LATIN AMERICA MEMBERSHIP WOULD ALSO HELP ENSURE THAT CONSUMERS RECEIVE UNINTERRUPTED SUPPLIES OF POPULAR QUALITY COFFEE MR LINGLE SAYS 9312060063 931206 BUSINESS BRIEF MOBILEMEDIA CORP PROVIDER OF PAGING SERVICES BUYS METROMEDIA PAGING MOBILEMEDIA CORP SAID THAT IT COMPLETED ITS ACQUISITION OF METROMEDIA PAGING SERVICES INC WHICH IT RENAMED MOBILEMEDIA COMMUNICATIONS INC MOBILEMEDIA A RIDGEFIELD PARK NJ PROVIDER OF PAGING SERVICES PURCHASED METROMEDIA FROM SOUTHWESTERN BELL CORP LOCAL AREA TELECOMMUNICATIONS INC WHICH PROVIDES LOCAL DIGITAL MICROWAVE DISTRIBUTION SERVICES FORMED MOBILEMEDIA CORP TO MAKE THE ACQUISITION MOBILEMEDIA SAID THAT IT FINANCED THE ACQUISITION THROUGH VARIOUS LIMITED PARTNERSHIPS MANAGED BY HELLMAN & FRIEDMAN A SAN FRANCISCO INVESTMENT FIRM THAT MADE A 150 MILLION EQUITY INVESTMENT IN MOBILEMEDIA CORP THE BALANCE OF THE FINANCING CAME FROM A PUBLIC OFFERING OF MOBILEMEDIA COMMUNICATIONS' 210 MILLION SENIOR NOTES AND FROM A 100 MILLION CREDIT FACILITY 9312060062 931206 MARKETING & MEDIA ADVERTISING FORECASTS OF AD SPENDING SUGGEST A RECOVERY IS STILL YEARS AWAY BY KEVIN GOLDMAN MADISON AVENUE CAN SAVE THE CHAMPAGNE FOR A FEW MORE YEARS FORECASTERS WHO TEND TO ERR ON THE SIDE OF OPTIMISM PROJECT LITTLE GROWTH IN OVERALL AD SPENDING FOR THE NEXT SEVERAL YEARS AD AGENCIES ARE LOOKING FOR ANY GOOD NEWS BECAUSE THE RECOVERY HAS BEEN PAINFULLY SLOW SINCE 1991 THE WORST YEAR FOR ADVERTISING IN THREE DECADES BUT AD EXECUTIVES WON'T BE GETTING THE NEWS THEY HOPED FOR TODAY THE FIRST DAY OF THE WEEKLONG PAINEWEBBER MEDIA CONFERENCE IN NEW YORK THIS MORNING SAATCHI & SAATCHI'S ZENITH MEDIA IS EXPECTED TO ANNOUNCE A 1994 FORECAST OF JUST 3 GROWTH IN TOTAL US AD SPENDING NEXT YEAR TO 882 BILLION BUT WHEN ADJUSTED FOR INFLATION ZENITH SAID ITS PROJECTION IS FOR A DECLINE OF 04 LAST WEEK ANOTHER FORECAST BY MYERS REPORTS PROJECTED 1994 AD SPENDING WOULD INCREASE 7 TO 921 BILLION BUT THE JUMP WOULD BE ONLY 2 WHEN ADJUSTED FOR INFLATION AND WILKOFSKY GRUEN ASSOCIATES WHICH WON'T BE PARTICIPATING AT THE CONFERENCE SEES AN INCREASE NEXT YEAR OF 7 TO ABOUT 902 BILLION IT DIDN'T RELEASE AN INFLATIONADJUSTED FIGURE THE NEWSPAPER INDUSTRY CONTINUES TO SUFFER THE MOST ZENITH FORECASTS A 1994 NEWSPAPER AD SPENDING DECLINE OF 14 WHEN ADJUSTED FOR INFLATION MYERS SEES A DECLINE OF 1 NEWSPAPERS AREN'T DOING WELL BECAUSE OF THE RETAIL ENVIRONMENT AND DEPARTMENT STORES CONTINUING TO BE OFF SAYS JACK MYERS PRESIDENT OF MYERS REPORTS STEVEN WINRAM ZENITH'S DIRECTOR OF MEDIA RESEARCH SAYS EVEN MORE THAN MAGAZINES NEWSPAPERS WILL BE STRUGGLING OVER THE NEXT SEVERAL YEARS TO PROVE THEIR RELEVANCE IN A TECHNOLOGYDRIVEN MEDIA WORLD IF YOU CAN GET NEWS WHENEVER YOU WANT IT FROM A PERSONAL COMPUTER SOME PEOPLE FIND IT VERY DIFFICULT TO SEE AD REVENUE GROWING IN NEWSPAPERS THE FORECASTERS' OUTLOOK FOR MAGAZINES ISN'T MUCH BETTER WITH ZENITH PREDICTING A DECLINE OF 05 AND MYERS EXPECTING MAGAZINE SPENDING TO BE FLAT THAT CONTRADICTS THE BULLISH PROJECTIONS AND BUZZ AMONG MAGAZINE PUBLISHERS THAT AD SPENDING IS GOING TO BE DOWNRIGHT HEALTHY THIS YEAR'S FOURTH QUARTER IS THE BEST FOURTH QUARTER WE'VE HAD IN YEARS SAYS HAROLD SHAIN PUBLISHER AND GENERAL MANAGER OF NEWSWEEK WE'RE OPTIMISTIC ABOUT 1994 ECONOMICALLY THINGS ARE TURNING AROUND AND WE HOPE TO ENJOY SOME OF THAT MR SHAIN SAYS THE INCREASES ARE PRETTY MUCH ACROSS CATEGORIES THE PUBLISHERS INFORMATION BUREAU DOESN'T HAVE FOURTHQUARTER FIGURES YET BUT JAMES R GRUTHIE THE ASSOCIATION'S EXECUTIVE VICE PRESIDENT OF MARKETING DEVELOPMENT SAYS AD SPENDING THROUGH OCT 31 IS STRONG FOR EXAMPLE DOMESTIC PASSENGERCAR AD SPENDING IS UP 23 FROM A YEAR EARLIER TO 344 MILLION AUTO AD PAGES ARE UP 25 TO 5373 ANOTHER STRONG CATEGORY IS TOILETRIES AND COSMETICS UP 98 IN REVENUE TO 655 MILLION AND UP 49 IN PAGES TO 12800 NOT SURPRISINGLY CIGARETTE AND TOBACCO AD SPENDING IN MAGAZINES CONTINUES ITS DECLINE DOWN 92 IN REVENUE TO 167 MILLION AND DOWN 105 TO 2798 PAGES FORECASTERS REMAIN MOST UPBEAT ABOUT CABLE AND BROADCAST TELEVISION WITH ZENITH FORECASTING 08 REAL GROWTH 43 BEFORE INFLATION MYERS IS MORE BULLISH PREDICTING 5 GROWTH AFTER INFLATION FOR BROADCAST NETWORKS AND 10 FOR CABLE TELEVISION THERE IS CONTINUED GROWTH IN BROADCAST NETWORKS SAYS MR WINRAM ESPECIALLY SINCE TIME WARNER AND PARAMOUNT COMMUNICATIONS ARE BOTH TRYING TO LAUNCH SEPARATE NEW NETWORKS MYERS EXPECTS GROWTH OF 3 AFTER INFLATION IN RADIO AND ZENITH WEIGHS IN WITH A PROJECTED DECLINE OF 04 OVERALL MR WINRAM SAYS WE'VE BEEN WORRYING ABOUT THE US FOR A WHILE MR WINRAM WHO IS BASED IN LONDON SEES TROUBLING TRENDS ACROSS THE ATLANTIC INCLUDING CONTINUED GROWTH IN PRIVATELABEL PRODUCTS FURTHER KNOCKING THE ESTABLISHED BRANDS MR WINRAM DOESN'T AGREE WITH THE CONVENTIONAL WISDOM THAT LARGE COMPANIES WILL INCREASE AD SPENDING TO COMBAT THE CHEAPER PRIVATELABEL GOODS WE'RE NOT GOING TO SEE THE DYNAMIC ADVERTISING GROWTH ANYMORE HE SAYS WITH SUCH DOWNBEAT FORECASTS MADISON AVENUE MAY EMBRACE THIS MORNING'S SCHEDULED PRESENTATION AT THE PAINEWEBBER CONFERENCE BY THE EVERCHEERFUL ROBERT COEN OF INTERPUBLIC GROUP'S MCCANNERICKSON HIS FORECAST IS ONE THAT AN INDUSTRY ON THE ROPES CAN USUALLY EMBRACE MR COEN DIDN'T RETURN PHONE CALLS FRIDAY BUT HIS PREDICTION IS USUALLY THE ROSIEST FOR INSTANCE HE PREDICTED 1993 US AD SPENDING TO BE 804 BILLION A 58 INCREASE HE ALSO PROJECTED WORLDWIDE AD SPENDING AT 1696 BILLION IN 1993 A 4 RISE HIS INFLATIONADJUSTED RATE COULDN'T BE DETERMINED THE OUTLOOK FOR THE ADVERTISING WORLD BEYOND 1994 CONTINUED PESSIMISM FORECASTERS SAY IN ITS REPORT TO BE RELEASED TODAY ZENITH SAYS ADVERTISERS HAVE BECOME INWARD LOOKING IN THE SEARCH FOR COMPETITIVE ADVANTAGE COMPETITIVENESS IS ABOUT BEING LEANER AND FITTER NOT EXPANDING VOLUME ABOUT CUTTING COSTS NOT INCREASING BUDGETS LOW GROWTH AND LOW INFLATION NOW SHAPE THE RECOVERY ADVERTISING CAN EXPECT RECOVERY WILL BE MODEST IN LINE WITH THE TOUGHER ECONOMIC ENVIRONMENT CHARLES SAATCHI WHO ALONG WITH HIS BROTHER MAURICE FOUNDED SAATCHI & SAATCHI PLC IN 1970 RESIGNED AS A DIRECTOR OF THE HOLDING COMPANY EFFECTIVE IMMEDIATELY THE COMPANY SAID IN A STATEMENT THAT THE 50YEAROLD MR SAATCHI WHOSE PASSION IS ART COLLECTING STEPPED ASIDE TO CONCENTRATE ON HIS CREATIVE ROLE FOR THE GROUP IT DIDN'T ELABORATE AND MR SAATCHI WASN'T AVAILABLE FOR COMMENT HE WILL BECOME THE COMPANY'S HONORARY PRESIDENT A NEWLY CREATED POSITION THE COMPANY DIDN'T DISCLOSE HIS NEW RESPONSIBILITIES THE ACTION CAME AFTER A BOARD MEETING AT THE COMPANY'S HEADQUARTERS IN LONDON LAST THURSDAY CITIBANK CITICORP'S CITIBANK CONSOLIDATED DIRECT MARKETING FOR NORTH AMERICAN CONSUMER BANKING OPERATIONS WITH INTERPUBLIC GROUP'S LOWE DIRECT THE BIG ACCOUNT WAS PREVIOUSLY SPLIT AMONG SEVERAL AGENCIES INCLUDING FCB DIRECT A UNIT OF FOOTE CONE & BELDING COMMUNICATIONS CHICAGO CITIBANK SAID FCB DIRECT CRAMERKRASSELT WPP GROUP'S OGILVY & MATHER DIRECT AND YOUNG & RUBICAM'S WUNDERMAN WORLDWIDE ALSO PITCHED FOR THE BUSINESS BILLINGS COULDN'T BE DETERMINED TAMBRANDS TAMBRANDS INC AWARDED ITS ESTIMATED 25 MILLION INTERNATIONAL ADVERTISING ACCOUNT TO OMNICOM GROUP'S BBDO NEW YORK WHICH HANDLES TAMBRANDS' 25 MILLION DOMESTIC ACCOUNT TAMBRANDS' EUROPEAN ADVERTISING WAS PREVIOUSLY HANDLED BY EURO RSCG PARIS ACCOUNT NORA BEVERAGES USA A UNIT OF MONTREALBASED NORA BEVERAGES INC KNOWN FOR NAYA BOTTLED WATER HAS PARTED WAYS WITH AD AGENCY ANGOTTI THOMAS HEDGE NEW YORK FIVE US AND CANADIAN AGENCIES ARE COMPETING FOR THE ESTIMATED 3 MILLION ACCOUNT SAID STEWART LEVITAN NORA USA'S VICE PRESIDENT AND GENERAL MANAGER WHO'S NEWS ROBERT IGIEL 53YEAROLD SENIOR VICE PRESIDENT AT THE ARTS & ENTERTAINMENT CABLE NETWORK WAS NAMED EXECUTIVE VICE PRESIDENT AND DIRECTOR OF BROADCAST AND PROGRAMMING AT YOUNG & RUBICAM NEW YORK MR IGIEL AND BETH ROCKWOOD Y&R EXECUTIVE VICE PRESIDENT AND DIRECTOR OF MEDIA PLANNING WERE NAMED ASSOCIATE DIRECTORS OF THE AGENCY'S NEW YORK MEDIA OPERATIONS 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 9312060061 931206 WHAT'S NEWS WORLDWIDE VIOLENCE ERUPTED IN ISRAEL AND CHRISTOPHER MET WITH SYRIA'S LEADER A PALESTINIAN BOARDED A BUS OUTSIDE TEL AVIV AND FATALLY SHOT A RESERVIST BEFORE BEING KILLED BY TROOPS IT WAS THE FIRST MAJOR ATTACK INSIDE ISRAEL SINCE THE SIGNING OF THE ISRAELPLO PEACE PACT ISRAELI OFFICIALS WARNED OF POSSIBLE FURTHER ATTACKS BY OPPONENTS OF THE ACCORD AS ISRAEL PREPARES TO TRANSFER POWER TO THE PLO IN GAZA AND JERICHO SECRETARY OF STATE CHRISTOPHER MEANWHILE HELD TALKS WITH SYRIA'S ASSAD AND SAID DAMASCUS PLEDGED TO HELP DETERMINE THE FATE OF SEVEN ISRAELI MIAS IN LEBANON IN CAIRO A PALESTINIAN NEGOTIATOR SAID DISCUSSIONS WITH ISRAEL FAILED TO RESOLVE A DISPUTE OVER SECURITY ARRANGEMENTS RELATED TO THE PEACE PACT VENEZUELANS ELECTED RAFAEL CALDERA THEIR PRESIDENT FOR THE SECOND TIME IN 25 YEARS ACCORDING TO EXIT POLL RESULTS CALDERA 77 CAMPAIGNED AGAINST THE ECONOMIC REFORMS OF FORMER PRESIDENT CARLOS ANDRES PEREZ SUSPENDED FROM OFFICE IN MAY ON CHARGES THAT HE MISUSED PUBLIC FUNDS CALDERA WAS PRESIDENT FROM 1969 TO 1974 ITALIAN LEFTISTS BEAT BACK A CHALLENGE BY NEOFASCISTS INCLUDING MUSSOLINI'S GRANDDAUGHTER TO WIN THE MAYOR'S POSTS IN NAPLES AND ROME INCOMPLETE RETURNS SHOWED THE VICTORIES WILL GIVE THE LEFT MOMENTUM GOING INTO NATIONAL ELECTIONS EXPECTED NEXT SPRING CREATING THE POSSIBILITY THE EXCOMMUNISTS COULD GOVERN ITALY FOR THE FIRST TIME MAMMOGRAPHY'S BENEFITS ARE UNCLEAR FOR WOMEN IN THEIR 40S BUT THE SCREENING REDUCES CANCER DEATHS AMONG OLDER WOMEN THE NATIONAL CANCER INSTITUTE SAID THE AGENCY RETREATED FROM GUIDELINES URGING WOMEN IN THEIR 40S TO GET MAMMOGRAMS EVERY YEAR OR TWO SUGGESTING INSTEAD THAT THEY CONSULT THEIR DOCTORS A THREEJUDGE PANEL ANNOUNCED IT SOON WILL RELEASE A SPECIAL PROSECUTOR'S FINAL REPORT ON THE IRANCONTRA SCANDAL ADDING THAT THE DOCUMENTS WILL BE LARGELY INTACT THE DECISION WAS VIEWED AS A VICTORY FOR NEWS ORGANIZATIONS WHICH FEARED PORTIONS MIGHT BE SUPPRESSED BY FORMER REAGAN ADMINISTRATION OFFICIALS KOHL'S PARTY SUFFERED A MAJOR SETBACK IN LOCAL ELECTIONS IN GERMANY'S EASTERN STATE OF BRANDENBURG THE CHANCELLOR'S CHRISTIAN DEMOCRATS FINISHED BEHIND THE OPPOSITION SOCIAL DEMOCRATS THE RESULTS WERE SAID TO REFLECT DISILLUSIONMENT IN FORMER EAST GERMANY WITH PROMISES OF SWIFT PROSPERITY UNDER A UNIFIED GOVERNMENT THE AMA IS SPLITTING WITH THE WHITE HOUSE OVER THE ISSUE OF WHETHER EMPLOYERS SHOULD HAVE TO PAY FOR WORKERS' MEDICAL INSURANCE DOCTORS FROM NEARLY A DOZEN STATES HAVE INTRODUCED RESOLUTIONS AT THE AMA'S CONVENTION URGING THAT INDIVIDUALS INSTEAD OF THEIR EMPLOYERS BE ULTIMATELY RESPONSIBLE HEALTH OFFICIALS MINIMIZED THE RISK OF CASUAL TRANSMISSION OF THE AIDS VIRUS AFTER TWO CHILDREN CONTRACTED IT THROUGH CONTACT BETWEEN INFECTED BLOOD AND BROKEN SKIN IN ONE CASE THE VIRUS WAS TRANSMITTED BY A RAZOR SHARED BY TWO TEENS US OFFICIALS SAID IN THE OTHER A BOY'S BLOOD PENETRATED HIS BROTHER'S SKIN RASH RESEARCHERS SAID ANGOLA'S UNITA REBEL MOVEMENT INSISTED IT HAD REACHED A CEASEFIRE ACCORD WITH THE GOVERNMENT OVER THE WEEKEND HOWEVER THE GOVERNMENT'S CHIEF NEGOTIATOR SAID NO UNDERSTANDING WAS REACHED DURING MORE THAN TWO WEEKS OF TALKS IN ZAMBIA BOSNIAN GOVERNMENT FORCES CAME UNDER ATTACK ON THREE FRONTS AS FOG AND ICE VIRTUALLY SHUT DOWN AN INTERNATIONAL AID AIRLIFT INTO SARAJEVO FOR A SECOND DAY ESPECIALLY HEAVY WEEKEND FIGHTING WAS REPORTED IN THE NORTHWESTERN BIHAC REGION WHERE THE BOSNIAN ARMY CLASHED WITH SUPPORTERS OF A BREAKAWAY MUSLIM LEADER A LETTER BOMB BLAST INJURED VIENNA'S MAYOR HELMUT ZILK WHO HAS BEEN AN OUTSPOKEN PROPONENT OF MINORITY RIGHTS IN AUSTRIA ZILK 66 WAS RUSHED TO THE HOSPITAL WITH INJURIES TO HIS LEFT ARM LATER POLICE DEFUSED ANOTHER BOMB SENT TO A LEGISLATOR BRINGING TO SIX THE NUMBER OF EXPLOSIVE DEVICES SENT TO HUMANRIGHTS ACTIVISTS SINCE FRIDAY SPACEWALKING SHUTTLE ASTRONAUTS SPENT EIGHT HOURS REPAIRING THE HUBBLE SPACE TELESCOPE DISCARDING A TWISTED SOLAR PANEL AND REPLACING FAULTY GYROSCOPES ON THE 3 BILLION TELESCOPE THE SHUTTLE CREW PLANNED FOUR MORE SPACEWALKS TO CORRECT FLAWS THAT HAVE BLURRED THE TELESCOPE'S FOCUS AND LED TO OTHER PROBLEMS 9312060060 931206 LEISURE & ARTS BOOKSHELF GETTING LEAN MARRYING WELL SELLING SEX BY AMY GAMERMAN IN HER BESTSELLING FITNESS GUIDE STOP THE INSANITY SIMON & SCHUSTER 363 PAGES 22 SUSAN POWTER MAKES A MODEST PROPOSAL LOSE A LITTLE WEIGHT GAIN SOME STRENGTH AND YOUR WHOLE LIFE WILL CHANGE TRAVEL ALL OVER THE COUNTRY APPEAR ON NATIONAL TELEVISION WRITE A BOOK SIGN FOR YOUR OWN TV SHOW REALISTIC HEY IT HAPPENED TO HER MS POWTER IS ONE OF A HANDFUL OF WOMEN WHO THROUGH HARD WORK A LITTLE PLASTIC SURGERY AND A LOT OF SAVVY MARKETING CAME FROM NOWHERE TO ATTAIN THE VERY PINNACLE OF THE AMERICAN DREAM A JUICY BOOK CONTRACT IT HELPS IF YOU ONCE WEIGHED 260 POUNDS AS MS POWTER DID BACK IN THE DAYS WHEN SHE WAS A DEPRESSED DALLAS DIVORCEE SNACKING ON THE COUCH WHILE WATCHING WORKOUT VIDEOS AFTER FAILING AT EVERY DIET SHE DECIDED TO EAT ONLY THINGS THAT WERE VERY LOW IN FAT AND HAD NO TASTE SUCH AS BROWN RICE AND LENTIL LOAF SHE SHELVED JANE FONDA AND WENT FOR LONG WALKS THAT TURNED INTO GYM WORKOUTS SHE GREW LEAN THEN SHE HAD A TUMMY TUCK SHAVED HER HEAD AND GOT HER OWN INFOMERCIAL NOW MORE PEOPLE WANT HER AUTOGRAPH THAN DOLLY PARTON'S THAT'S JUST ONE OF THE INSPIRATIONAL STORIES IN THE BOOK WHICH ALSO IS STUFFED WITH FOOD TABLES SHOWING HOW YOU'D HAVE TO EAT 800 GRAPES TO GET THE FAT OF ONE CHOCOLATE CHIP COOKIE AND MANY PHOTOS OF THE AUTHOR WAXING AND WANING LIKE THE MOON IF YOU'RE STILL HUNGRY FOR MORE WHEN YOU'VE FINISHED THE BOOK YOU CAN SUBSCRIBE TO MS POWTER'S AUDIO NEWSLETTER ADVERTISED INSIDE THE JACKET FOR IMPORTANT INFORMATION ON EATING BREATHING AND MOVING OR YOU COULD JUST EAT 800 GRAPES GEORGETTE MOSBACHER AUTHOR OF FEMININE FORCE SIMON & SCHUSTER 286 PAGES 22 AND THE SELFDECLARED CEO OF MY OWN LIFE PUTS HER TRUST IN COSMETICS AND NOT JUST BECAUSE SHE PEDDLES HER OWN LINE ON CABLE TV STATISTICS SHOW THAT WHEN WOMEN IN MENTAL INSTITUTIONS IMPROVE IN CONDITION THE FIRST THING THEY ASK FOR IS THEIR LIPSTICK SHE CHIRPS WE CAN ONLY HOPE THAT THOSE WOMEN ARE IN AN INSTITUTION THAT GETS CABLE MS MOSBACHER'S TIPS FOR HER FELLOW FEMALES ARE WORTH THEIR WEIGHT IN PRICEY EYE SHADOW IN A CHAPTER ENTITLED YOU WANT THAT MAN HERE'S HOW TO GET HIM SHE FLAUNTS THE TECHNIQUE THAT HELPED HER SNARE THREE RICH HUSBANDS THE CURRENT ONE IS FORMER COMMERCE SECRETARY ROBERT MOSBACHER WHAT A MAN LIKES MOST TO TALK ABOUT IS HIMSELF SHE WRITES AND SUGGESTS THESE OPENERS DOES THAT RED HANKY SIGNIFY ANYTHING' OR HAVE YOU ALWAYS WORN A MOUSTACHE' IS HE LEFTHANDED YOU CAN DEVELOP A WHOLE CONVERSATION RIGHT THERE STALK YOUR PREY IN FAO SCHWARZ ON SATURDAYS WHEN IT'S LOADED WITH DIVORCED MEN AND THEIR CHILDREN AND DON'T BE SHY ABOUT POPPING THE QUESTION THE AUTHOR DID THREE TIMES NONE OF THEM SAID YES THE FIRST TIME YOU JUST KEEP TALKING OVER THAT NO' UNTIL YOU GET A YES MS MOSBACHER WOULD SURELY APPLAUD IVANA TRUMP'S NEW NOVEL FREE TO LOVE POCKET BOOKS 504 PAGES 23 FOR ITS COVER ALONE A TESTAMENT TO THE POWER OF COSMETICS IT SHOWS THE AUTHOR WEARING PINK FEATHERS AND SEVERAL POUNDS OF THE STUFF WHAT'S MORE MS TRUMP'S HEROINE KATRINKA IS AT HER MAKEUP TABLE WHEN WE FIRST MEET HER STROKING A FAINT TRACE OF BLUSHER ALONG THE HIGH RIDGE OF HER CHEEKS BY PAGE TWO WE KNOW ALL ABOUT HER JEWELRY YELLOW DIAMONDS HER SUIT CHANEL HER PERFUME FRACAS AND HER HANDBAG CROCODILE KATRINKA SHARES MORE WITH HER CREATOR THAN A HEAP OF COUTURE CLOTHING SHE ALSO HAS A LOUTISH EXHUSBAND AND A CUTE IRON CURTAIN ACCENT CAMILLE MARCHETTA MS TRUMP'S GHOSTWRITER MASTERFULLY CAPTURES THE HEROINE'S GARBLED SYNTAX IN LINES SUCH AS TELL HIM I DO COME AND I DID NEVER HEAR HER MENTION HIS NAME AFTER 504 PAGES YOU'LL END UP SPEAKING ENGLISH AS A SECOND LANGUAGE YOURSELF KATRINKA RUNS A LITTLE HOTEL CHAIN BUT ALEX ADAMS THE MOTHER OF ALL MADAMS PRESIDED OVER A MINIEMPIRE I MIGHT WELL HAVE BEEN ONE OF THE HIGHESTEARNING SELFMADE WOMEN IN THE COUNTRY UP THERE WITH MRS FIELDS AND DONNA KARAN AND DIANE VON FURSTENBERG SHE BRAGS WITH THE HELP OF COAUTHOR WILLIAM STADIEM IN MADAM 90210 VILLARD 284 PAGES 22 MS OR IS IT MME ADAMS WHOSE COMMENTARY PUNCTUATES SORDID TALES FROM HER BORDELLO COULD TEACH LEE IACOCCA A THING OR TWO SHE TOOK OVER A SLEEPY CALLGIRL SERVICE I HAD THREE YOUNG BOYS TO SUPPORT AND SEND TO CATHOLIC SCHOOL AND TRANSFORMED IT INTO THE NEIMANMARCUS OF SEX HOW DID SHE DO IT WELL ALONG WITH SENDING NEW RECRUITS FOR MAKEOVERS BIKINI WAXES AND SILICONE IMPLANTS I'D HAVE TO EXPLAIN TO THEM THAT THE CUSTOMER IS ALWAYS RIGHT LIKE MANY CEOS MS ADAMS HAD TO FIGHT OFF A HOSTILE TAKEOVER ATTEMPT FROM ONE OF HER OWN GIRLS ONLY TO BE SUNK BY A FORMER BUSINESS ASSOCIATE THE LOS ANGELES POLICE DEPARTMENT WHICH SHE HAD ASSISTED OVER THE YEARS AS AN INFORMER I NEVER FELT MORE BETRAYED IN MY LIFE SHE GRIPES MS ADAMS WHO GOT OFF WITH 18 MONTHS' PROBATION IS NOW RETIRED BUT SHE'S STILL THE CEO OF HER OWN LIFE 9312060059 931206 SPAIN'S ENDESA WELCOMES CHANGES IN ELECTRIC SECTOR SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S STATERUN ELECTRICITY UTILITY EMPRESA NACIONAL DE ELECTRICIDAD SA OR ENDESA SAID IT WELCOMED THE RESTRUCTURING OF SPAIN'S ELECTRIC SECTOR DESPITE THE NEGATIVE IMPACT ON ENDESA'S EARNINGS THE REORGANIZATION SCRAPS ENDESA'S GOVERNMENTGRANTED PRIVILEGES WHICH WILL CAUSE A DROP IN THE COMPANY'S EARNINGS OF LESS THAN 5 A YEAR ENDESA SAID BUT A STRING OF ASSET ACQUISITIONS BY ENDESA ALSO INCLUDED IN THE RESTRUCTURING WILL HELP STRENGTHEN ITS POSITION IN THE RETAIL MARKET AND DIVERSIFY ITS POWER MIX AWAY FROM COAL THE COMPANY ADDED ENDESA PUTS A POSITIVE VALUE ON THE ACCORD WHICH WILL HELP CONSOLIDATE ITS POSITION IN THE SPANISH ELECTRICAL SECTOR GUARANTEEING THE COMPANY'S EFFICIENCY AND PROFITABILITY ENDESA SAID THE NEW LEGISLATIVE FRAMEWORK WAS OFFICIALLY SIGNED LATE THURSDAY BY INDUSTRY AND ENERGY MINISTER JUAN MANUEL EGUIAGARAY AND THE CHAIRMEN OF SPAIN'S MAJOR UTILITIES UNDER THE NEW FRAMEWORK ENDESA'S ASSETS WILL NO LONGER BE VALUED ON A SEPARATE BASIS FROM THE PRIVATE SECTOR SINCE ENDESA SPENT 600 BILLION PESETAS 423 BILLION IN 1985 BUYING ASSETS TO HELP PRIVATESECTOR UTILITIES PAY OFF THEIR DEBTS THE GOVERNMENT HAS INFLATED THE VALUE OF THE STATERUN GENERATOR'S ASSETS BY ABOUT 38 THIS ASSET VALUE WAS THEN USED IN A PRICING SYSTEM FOR ELECTRICITY BETWEEN THE UTILITIES WHICH WAS BASED ON THE RATE OF RETURN EACH UTILITY RECEIVES ON ITS ASSETS THESE ARE SOME OF THE ACQUISITIONS AGREED ON WITHIN THE FRAMEWORK ENDESA WILL BUY FROM IBERDROLA SA THE LEADING PRIVATESECTOR UTILITY ALL OF THE HYDROELECTRIC AND FUELGAS ASSETS CURRENTLY HELD BY ITS HIDROELECTRICA DE CATALUNA UNIT ENDESA WILL CREATE A SUBSIDIARY TO OPERATE THE ASSETS WHILE HIDRUNA WILL CONTINUE TO HOLD A 15 STAKE IN THE ASCO II NUCLEAR PLANT NO PRICE WAS GIVEN ENDESA'S ELECTRICAS REUNIDAS DE ZARAGOZA SA SUBSIDIARY WILL PAY 1520 BILLION PESETAS FOR IBERDROLA'S HYDROELECTRIC ASSETS AND MARKETS IN THE NORTHERN PYRENEES REGION ENDESA SAID ENDESA WILL BUY IBERDROLA'S 4 STAKE IN FUERZAS ELECTRICAS DE CATALUNA SA RAISING ITS STAKE IN FECSA TO 49 NO PRICE WAS GIVEN ENECO A COMPANY HELD EQUALLY BY ENDESA AND CIA SEVILLANA DE ELECTRICIDAD SA WILL BUY IBERDROLA'S 25 STAKE IN THE HYDROELECTRIC GENERATOR SALTOS DEL GUADIANA SA FOR 50 BILLION PESETAS ENDESA WILL BUY 115 IN SOCIEDAD AGUAS DE BARCELONA SA A WASTESERVICES AND WATER UTILITY ENDESA DIDN'T GIVE A PRICE OR SAY WHOM IT WOULD BUY THE STAKE FROM ENDESA WILL BUY 25 OF UNION FENOSA'S 465 STAKE IN THE NUCLEAR PLANT TRILLO I IBERDROLA WILL ALSO BUY 25 OF UNION FENOSA'S HOLDING IN TRILLO I RAISING ITS STAKE TO 49 HIDROELECTRICA DEL CANTABRICO SA WILL BUY 7 OF FENOSA'S STAKE RAISING HIDROCANTABRICO'S STAKE TO 14 NO PRICE WAS GIVEN 9312060058 931206 BIG AIRLINES CUT DOMESTIC FARES AS MUCH AS 35 BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR AIRLINES TRYING TO LURE WINTER TRAVELERS OUT OF HIBERNATION SLASHED DOMESTIC AIRFARES BY AS MUCH AS 35 NORTHWEST AIRLINES THE FOURTHLARGEST AIRLINE AND A UNIT OF WINGS HOLDINGS INC INITIALLY MATCHED ITS RIVALS AND THEN YESTERDAY ADDED ANOTHER PROMOTION WITH FARE CUTS OF AS MUCH AS 30 FOR DOMESTIC TRAVEL BETWEEN DEC 13 AND JAN 5 THE NORTHWEST SALE WHICH EXCLUDES TRAVEL ON DEC 23 AND 24 AND ON JAN 2 ALSO ENDS ON FRIDAY IT WAS UNCLEAR LATE YESTERDAY WHETHER OTHER AIRLINES WOULD MATCH THE NORTHWEST INITIATIVE AMR CORP'S AMERICAN AIRLINES WHICH WAS THE FIRST TO BEST THE TWA OFFER SAID ITS RESPONSE WASN'T AN ATTEMPT TO RECOUP TRAFFIC LOST DURING THE FLIGHT ATTENDANTS' STRIKE LAST MONTH THE WALKOUT RESULTED IN AMERICAN FLYING PLANES LESS THAN HALF FULL FOR THREE DAYS DURING THE THANKSGIVING PERIOD THE HEAVIEST TRAVEL WEEK OF THE YEAR AN AMERICAN SPOKESMAN SAID THE COMPANY EXTENDED ITS PROGRAM SO IT COULD DISSEMINATE ADS THROUGH NEXT WEEK TO ATTRACT MORE PASSENGERS THE PROMOTIONAL ACTIVITY COMES AMID THE SEASONALLY SLUGGISH WINTERTRAVEL PERIOD WHEN THE WEATHER TURNS COLD PLANES TYPICALLY EMPTY OUT AIRPLANE OCCUPANCIES AS MEASURED BY LOAD FACTOR OR THE PROPORTION OF SEATS FILLED FELL BELOW 60 INDUSTRYWIDE LAST WINTER FROM NEARLY 76 IN THE PEAK SUMMER MONTH OF AUGUST THAT DROPOFF TYPICALLY SENDS AIRLINES SCRAMBLING TO LURE PASSENGERS WITH DISCOUNTS UNDER THE PROMOTIONS OFFERED BY THE MAJOR CARRIERS A SATURDAYNIGHT STAY IS REQUIRED DEPARTURES ON TUESDAYS WEDNESDAYS AND SATURDAYS GENERALLY OFFER THE BEST SAVINGS WITH SMALLER SAVINGS ON OTHER DAYS THERE ARE ALSO VARIOUS OTHER RESTRICTIONS 9312060057 931206 MCDONNELL TO CEASE WORK AT PLANT CUT 1150 JOBS ST LOUIS MCDONNELL DOUGLAS CORP SAID IT WILL CEASE OPERATIONS AT AIR FORCE PLANT 3 IN TULSA OKLA ELIMINATING 1150 JOBS IN THE NEXT YEAR AS PART OF CONTINUING CONSOLIDATION AND COST CUTTING HOWEVER 380 NEW JOBS WILL BE CREATED ELSEWHERE IN OKLAHOMA TO PERFORM NEW MODIFICATION AND CREWTRAINING WORK ON THE CONTROVERSIAL C17 MILITARYTRANSPORT PROGRAM LEAVING A NET JOB LOSS IN THE STATE OF 770 JOBS THE DEFENSE COMPANY WHICH HAS 72000 WORKERS HAS CUT 60000 JOBS SINCE MID1990 SEPARATELY THE COMPANY SAID DAVID O SWAIN 51 YEARS OLD WILL LEAVE HIS POSITION AS CHIEF OF THE C17 PROGRAM TO BECOME MANAGER OF THE COMPANY'S NEW AIRCRAFT AND MISSILE PRODUCTS UNIT AIR FORCE AND COMPANY MANAGERS HAVE FACED CRITICISM IN CONGRESS AND THE PENTAGON OVER DEVELOPMENT PROBLEMS WITH THE TRANSPORT PLANE MR SWAIN WILL REPORT TO JAMES M SINNETT 54 NEWLY APPOINTED SENIOR VICE PRESIDENT OF THE NEW AIRCRAFT AND MISSILE UNIT MR SWAIN WILL BE SUCCEEDED BY DONALD R KOZLOWSKI 55 WHO IS NOW MANAGER OF HIGH SPEED CIVIL TRANSPORT RESEARCH 9312060056 931206 ABREAST OF THE MARKET CLINTON VS KENNEDY SIMILARITIES IN THE STOCK MARKET BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL FLIP ON YOUR RADIO DO YOU HEAR MOON RIVER CHECK THE MARQUEE AT YOUR LOCAL MOVIE THEATER IS WEST SIDE STORY PLAYING WELL IT'S NOT 1961 IN THE REAL WORLD BUT IN THE STOCK MARKET IT'S LATE 1961 REVISITED SAYS NED DAVIS MR DAVIS A NOKOMIS FLA STOCKMARKET RESEARCHER WHO IS RESPECTED FOR HIS TECHNICAL AND HISTORICAL INSIGHTS SEES STRIKING SIMILARITIES BETWEEN THE STOCK MARKET'S BEHAVIOR UNDER JOHN F KENNEDY AND ITS BEHAVIOR SO FAR UNDER BILL CLINTON THE SIMILARITIES BEGAN DURING THE ELECTION CAMPAIGNS OF 1960 AND 1992 AS IT LOOKED INCREASINGLY LIKELY THAT A YOUNG DEMOCRAT WOULD REPLACE AN OLDER REPUBLICAN STOCKS DIPPED ONCE MR KENNEDY AND MR CLINTON TOOK THE REINS STOCKS REVERSED AND BEGAN TO CLIMB DURING MR KENNEDY'S TERM STOCKS TOPPED OUT IN DECEMBER 1961 DRIFTED SIDEWAYS FOR A FEW MONTHS AND BEGAN TO TUMBLE IN APRIL 1962 A NASTY BEAR MARKET DRAGGED THE DOW JONES INDUSTRIAL AVERAGE DOWN 27 IS HISTORY ABOUT TO REPEAT ITSELF MR DAVIS THINKS SO HE POINTS TO A FLOCK OF SIMILARITIES BETWEEN THE MARKET CLIMATE THEN AND NOW IN 1961 STOCKS WERE SELLING FOR MORE THAN 20 TIMES THE PREVIOUS FOUR QUARTERS' EARNINGS THE SAME IS TRUE TODAY THE HIGH STOCK PRICES IN 1961 AS TODAY HAD PUSHED THE AVERAGE DIVIDEND YIELD ON STOCKS DOWN TO WELL UNDER 3 A TRADITIONAL WARNING ZONE BY ALMOST ANY MEASURE BOTH 1961 AND 1993 ARE AMONG THE MOST EXPENSIVE MARKETS IN HISTORY AND IN BOTH CASES THE HIGH VALUATIONS HAD PERSISTED FOR AN UNUSUALLY LONG TIME A YEAR OR MORE PEOPLE WHO ARE SAYING WE'RE SAFE NOW FROM A MARKET DECLINE ARE POINTING TO LOW INTEREST RATES SAYS MR DAVIS BUT HE ADDS INTEREST RATES WERE MUCH LOWER THEN AND THAT DIDN'T PREVENT THE SCORCHING 1962 BEAR MARKET IN NOVEMBER 1961 INFLATION WAS RUNNING AT LESS THAN 1 VS PERHAPS 3 TODAY THE INTEREST RATE ON TREASURY BILLS WAS ABOUT 25 VS JUST OVER 3 TODAY AND LONGTERM TREASURY BONDS YIELDED ABOUT 4 VS ABOUT 6 TODAY BOTH MR KENNEDY AND MR CLINTON CAME INTO OFFICE INTENDING TO CONCENTRATE ON DOMESTIC AFFAIRS AND GET THE ECONOMY MOVING AGAIN MR DAVIS SAYS BUT BOTH HAD TO DEVOTE CONSIDERABLE TIME TO FOREIGN CRISES MR KENNEDY HAD TO DEAL WITH THE BERLIN WALL AND THE FAILED BAY OF PIGS INVASION IN CUBA MR CLINTON HAS WRESTLED WITH PROBLEMS IN THE FORMER YUGOSLAVIA SOMALIA AND HAITI THE STOCK MARKET TODAY AS IN THE FALL OF 1961 IS CHARACTERIZED BY MIXED TECHNICAL INDICATORS AND A LOT OF CHURNING MR DAVIS SAYS TECHNOLOGY STOCKS WERE LEADERS IN BOTH MARKETS AND IN EACH CASE THE PIPELINE WAS GUSHING WITH NEWLY ISSUED STOCKS MICHAEL MURPHY A MONEY MANAGER AND INVESTMENTNEWSLETTER WRITER IN HALF MOON BAY CALIF RAISES ANOTHER PARALLEL PRESIDENT KENNEDY BECAME FURIOUS WHEN STEEL INDUSTRY EXECUTIVES RAISED PRICES AFTER HE THOUGHT THEY HAD PROMISED NOT TO MR MURPHY THINKS MR CLINTON WILL GET INTO A SIMILAR TUSSLE PERHAPS WITH THE DRUG INDUSTRY IN HIS NEWSLETTER OVERPRICED STOCK SERVICE MR MURPHY WROTE IN APRIL 1962 PRESIDENT CLINTON SORRY KENNEDY CALLED THE STEEL EXECUTIVES SOBS AND A NASTY BEAR MARKET BEGAN LET'S SEE APRIL 1994 SHOULD BE JUST ABOUT WHEN THE DRUG MANUFACTURERS KILL THE PRICE CONTROL PART OF THE HEALTHCARE PLAN AND PRESIDENT KENNEDY SORRY CLINTON CALLS THEM SOBS AND OTHER MONEY MANAGERS ARE STARTING TO ARGUE ABOUT THE 1962EQUALS1994 PARALLEL NOW THAT IT HAS BEEN RAISED BY MR DAVIS AND MR MURPHY ONE WHO REJECTS THE PARALLEL IS ELAINE GARZARELLI QUANTITATIVE ANALYST AT LEHMAN BROTHERS TO BEGIN WITH MS GARZARELLI SAYS STOCKS AREN'T TOO HIGH EVEN IF SOME TRADITIONAL YARDSTICKS SUGGEST THEY ARE SHE SAYS IT'S IMPORTANT TO ADJUST CORPORATE EARNINGS FOR ONETIME WRITEOFFS AND FOR ACCOUNTING CHANGES ONCE THAT'S DONE SHE SAYS STOCK PRICES ARE REASONABLE PRESIDENT CLINTON SHE BELIEVES IS FAR MORE PROBUSINESS THAN PRESIDENT KENNEDY WAS KENNEDY HAD A WAR ON BIG BUSINESS SHE SAYS CLINTON HAS GOT BUSINESS ON HIS SIDE IN 1962 MS GARZARELLI SAYS 90 OF INVESTMENT ADVISERS WERE BULLISH TODAY FEWER THAN HALF ARE MANY STOCK MARKET ANALYSTS VIEW SENTIMENT AS A CONTRARY INDICATOR INDUSTRIAL PRODUCTION PEAKED IN 1962 MS GARZARELLI SAYS BUT IT ISN'T LIKELY TO PEAK IN THE CURRENT CYCLE UNTIL LATE 1994 AT THE EARLIEST FINALLY SHE SAYS THE INTERESTRATE CLIMATE IS BETTER NOW THAN IN 1962 LONGTERM BOND YIELDS REMAIN BELOW PRIORYEAR LEVELS WHICH IS CONSIDERED A GOOD SIGN AND SHORTTERM INTEREST RATES MOVED UP DRAMATICALLY BEFORE THE 1962 DECLINE WHICH SHE DOESN'T THINK WILL HAPPEN THIS TIME THERE ARE A LOT OF PARALLELS SAYS STEVEN LEUTHOLD OF LEUTHOLD GROUP IN MINNEAPOLIS BUT HISTORY ISN'T A XEROX MACHINE MR LEUTHOLD SAYS HIS TECHNICAL MARKET INDICATORS WERE IN SADDER SHAPE IN 1962 THAN THEY ARE NOW ON THE OTHER HAND HE SAYS MOST BIG INSTITUTIONAL INVESTORS WERE BUYANDHOLD TYPES BACK IN 1962 BUT TODAY ARE QUICKER ON THE TRIGGER VICTOR SPERANDEO PRESIDENT OF RAND MANAGEMENT IN SHORT HILLS NJ SAYS A CRUCIAL QUESTION IS WHAT THE FEDERAL RESERVE BOARD WILL DO THE FED WAS BEGINNING TO TIGHTEN IE RESTRICT THE MONEY SUPPLY IN LATE 1961 HE SAYS IF THE FED DOES THAT AGAIN HE THINKS THE MARKET WOULD HIT THE SKIDS LARRY WACHTEL A MARKET ANALYST AT PRUDENTIAL SECURITIES SAYS THAT THE PARALLEL IS APT BUT THAT POLITICS IS ONLY ONE OF MANY INGREDIENTS THAT INFLUENCE THE STOCK MARKET IN HIS VIEW THE MAJOR THREAT TO THE BULL MARKET WOULD BE RISING INTEREST RATES HE DOESN'T EXPECT RATES TO RISE MUCH UNLESS WE GET A MORE VIGOROUS ECONOMY THAN WE ARE PRESENTLY SEEING STOCK PRICES CLIMBED SLIGHTLY AFTER A GOVERNMENT REPORT PROVIDED MORE SIGNS OF A FIRMING ECONOMY THE DOW JONES INDUSTRIAL AVERAGE GAINED 196 POINTS TO 370407 STANDARD & POOR'S 500STOCK INDEX ROSE 178 TO 46489 AND THE NASDAQ COMPOSITE INDEX JUMPED 549 TO 77222 CONTINUING A RECOVERY THAT PUSHED THE INDEX UP 23 LAST WEEK NEW YORK STOCK EXCHANGE VOLUME SWELLED TO 2683 MILLION SHARES UP FROM 2531 MILLION SHARES THURSDAY ADVANCING ISSUES OUTPACED DECLINERS 1207 TO 809 FOR THE WEEK THE DOW INDUSTRIALS INCHED UP 05 AND THE S&P ADDED 04 STOCK PRICES TRADED IN A NARROW BAND ALL DAY FRIDAY IN SPITE OF A LABOR DEPARTMENT REPORT SHOWING THAT NONFARM PAYROLLS JUMPED A BIGGERTHANEXPECTED 208000 LAST MONTH AND THE UNEMPLOYMENT RATE FELL TO A SURPRISING 64 FROM 68 THE NEWS WHILE WELCOME TO STOCK INVESTORS STIRRED FEARS THAT THE PICKUP IN THE ECONOMY MAY BE FORESHADOWING INFLATION AND HIGHER INTEREST RATES PACTEL WAS ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD RISING TO 25 1/2 FROM AN INITIAL OFFERING PRICE OF 23 THE COMPANY A GROUP OF BUSINESSES SPUN OFF BY PACIFIC TELESIS GROUP SOLD 60 MILLION COMMON SHARES LATE THURSDAY THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS AND SALOMON BROTHERS PACIFIC TELESIS ADDED 1/4 TO 57 7/8 IN BRISK TRADING GENERAL MOTORS CRUISED 1 1/2 POINTS HIGHER TO 55 ON NEWS OF ROBUST CAR SALES IN LATE NOVEMBER FORD EDGED UP 5/8 TO 62 7/8 AND CHRYSLER ROSE 5/8 TO 54 1/8 MICROSOFT GAINED 2 7/8 TO 85 3/4 IN NASDAQ TRADING THE REDMOND WASH SOFTWARE COMPANY IS INVADING THE BOOMING MARKET FOR CHILDREN'S SOFTWARE PART OF ITS NEW PUSH TO SELL PROGRAMS FOR HOMECOMPUTER USERS STOCKS OF PUBLISHING COMPANIES RALLIED ON THE EXPECTATION THAT MANY OF THESE FIRMS WILL BE MAKING UPBEAT PRESENTATIONS AT PAINEWEBBER'S MEDIA CONFERENCE THIS WEEK DOW JONES WHICH PUBLISHES THIS NEWSPAPER JUMPED 1 7/8 TO 38 7/8 ON THE BIG BOARD HITTING A NEW 52WEEK HIGH AND NEW YORK TIMES CLASS A SHARES SOARED 2 7/8 TO 28 1/8 ON THE AMERICAN STOCK EXCHANGE ALSO HIGHER WERE AH BELO CLASS A SHARES WHICH BOUNCED UP 4 1/8 TO 49 5/8 TOUCHING A 52WEEK HIGH ON THE BIG BOARD NATIONAL MEDICAL ENTERPRISES ADDED 5/8 TO 12 1/2 THE COMPANY SAID IT REACHED A DEFINITIVE AGREEMENT TO SELL 28 REHABILITATION HOSPITALS AND 45 OUTPATIENT REHABILITATION CENTERS TO HEALTHSOUTH REHABILITATION FOR ABOUT 300 MILLION IN CASH NATIONAL MEDICAL SAID IT EXPECTS TO RECORD AN UNSPECIFIED THIRDQUARTER GAIN ON THE SALE SHAW INDUSTRIES TUMBLED 4 TO 42 3/4 KIDDER PEABODY ANALYST DAVID DWYER SLICED HIS ESTIMATES FOR SECONDQUARTER PROFITS TO 45 CENTS A SHARE FROM A PREVIOUS FORECAST OF 52 CENTS A SHARE 9312060054 931206 LEISURE & ARTS CRITIQUE GRAND DELUSION FRENCH FILMS VS GATT BY RAYMOND SOKOLOV AS THE DEC 15 DEADLINE FOR COMPLETING THE GENERAL AGREEMENT ON TARIFFS AND TRADE DRAWS EVER CLOSER AN ENDGAME SCENARIO RIGHT OUT OF A B MOVIE LOOKS INCREASINGLY PLAUSIBLE HERE IS WHAT MIGHT HAPPEN THE FRENCH HAVING APPEARED TO YIELD ON THE MAIN REMAINING PROBLEM AGRICULTURE WILL REFUSE TO BUDGE ON THE MOVIES THE TALKS COLLAPSE AND THE CHILL OF MERCANTILIST WINTER FREEZES THE WORLD'S ECONOMY BUT THE FRENCH SMILE SERENELY AND CONTINUE SUBSIDIZING THEIR FILM INDUSTRY AND DOING THEIR BEST TO KEEP HOLLYWOOD FROM COMPETING ON AN EQUAL BASIS FOR THEIR THEATRICAL AND TELEVISION SCREENS THE POLITE WORD FOR THIS POLICY IS EXCEPTION CULTURELLE CULTURAL EXCEPTION IT MEANS TO PUT MOVIES AND SOME OTHER CULTURAL VENTURES ON A SPECIAL PEDESTAL ABOVE THE FRAY OF FREEMARKET FORCES ABOUT TO BE UNLEASHED ON COLBERT'S CHILDREN BY GATT THE FRENCH HAVE MANY REASONS FOR WANTING TO CONTINUE TO PROTECT THEMSELVES FROM HOLLYWOOD AND TO FAVOR THEIR OWN INSULAR INDUSTRY WITH SUBSIDY AND WITH ASSISTANCE IN DISTRIBUTION THEY POINT TO THE ONCE GLORIOUS ITALIAN FILM INDUSTRY NOW ALL BUT VANISHED BECAUSE ITALIANS STAY HOME AND WATCH THEIR COMPARATIVELY UNREGULATED TELEVISION SYSTEM THE FRENCH ALSO SEIZE THE HIGH GROUND AND SNIFF ABOUT NOT WANTING TO THINK OF CULTURE AS SOMETHING THAT CAN BE BOUGHT AND SOLD CULTURE IS THE SOUL AND IT IS WHAT MAKES THE FRENCH FRENCH THE NEW FRENCH CULTURE MINISTER JACQUES TOUBON SAID RECENTLY THAT JURASSIC PARK IS A THREAT TO FRENCH IDENTITY ONE IS TEMPTED TO POINT OUT THAT THE WORD JURASSIC IS ITSELF FRENCH FROM THE JURA MOUNTAINS WHERE THE FIRST JURASSIC FOSSILS WERE FOUND BUT IT IS LATE IN THE GAME TO BE TAKING CHEAP SHOTS AT INSECURE FRENCH FUNCTIONARIES EXPRESSING A NATIONAL COMPLEX ABOUT LOST CULTURAL INFLUENCE IN THE OUTSIDE WORLD THE FACT THAT FRENCH FILMS NO LONGER COMPETE FOR THE ATTENTION OF FOREIGN AUDIENCES AS THEY DID IN THE DAYS OF JEAN RENOIR MARCEL CARNE AND FRANCOIS TRUFFAUT IS SOMETHING OFFICIALLY BLAMED ON THE INSENSITIVITY OF NONFRENCH VIEWERS AND OF COURSE ON THE CRASS SAVOIR FAIRE OF AMERICAN FILM PROMOTERS THE POSSIBILITY SUGGESTED A WHILE AGO IN THESE PAGES THAT FRENCH FILMS NO LONGER STRIKE A UNIVERSAL NOTE PRECISELY BECAUSE OF THE SYSTEM OF STATE SUBSIDY WAS DISMISSED JUST NOW IN A FRONTPAGE ESSAY IN LE MONDE AS STUPIDITY MUCH OF THIS DISPUTE IS PROBABLY UNNECESSARY SINCE GATT TECHNICIANS KEEP SAYING THAT THE AGREEMENT WOULD NOT PROHIBIT THE STATUS QUO OF SUBSIDY IN FRANCE THE RESTRICTIONS ON NONFRENCH TELEVISION PROGRAMMING ARE OBVIOUSLY NOT POPULAR WITH AMERICAN COMPANIES BUT IT ISN'T HARD TO SEE WHY PEOPLE USED TO RULING THE CULTURAL ROOST FIND IT INCONGRUOUS THAT SO MUCH OF WHAT APPEARS ON THEIR TV SCREENS SHOULD BE DUBBED SITCOMS SET IN US SUBURBIA IMAGINE THE REVERSE IN WHICH OUR PRIME TIME WAS FILLED WITH GASTONS AND MARIECLAIRES CONDUCTING MARITAL DISPUTES IN BADLY SYNCHED AND STILTED ENGLISH OR CAPESWINGING FRENCH COPS SOLVING CRIMES PASSIONNELS IN THE SHADOW OF THE EIFFEL TOWER THE IDEAL GATT AGREEMENT ON CULTURE SHOULD PROBABLY DISTURB THE STATUS QUO AS LITTLE AS POSSIBLE LEAVING THE FRENCH BUREAUCRACY TO PURSUE ITS DREAMS OF GLORY BUT PREVENTING ANY INCREASE IN CHAUVINIST RESTRICTIONS AND PARANOID TARIFFS THE FRENCH PEOPLE SHOULD AFTER ALL HAVE SOME SAY IN THIS AND THEY ARE VOTING EVERY DAY WITH THEIR ZAPPEURS CLICKING ON USMADE PROGRAMS HOWEVER VILE SOMEHOW THE BEST OF AMERICAN PROGRAMMING DOESN'T ALWAYS MAKE IT ONTO FRENCH SCREENS THE STATUS QUO PROVIDES PARISIAN FILMGOERS WITH WHAT MAY BE THE WORLD'S RICHEST ARRAY OF MOVIES IN THEATERS IN A RECENT WEEK FIGAROSCOPE LISTED 273 FILMS PLAYING IN 100 HOUSES THERE WERE REVIVALS OF CLASSICS FRENCH AMERICAN BRITISH AS WELL AS CURRENT FILMS FROM AROUND THE PLANET FIGAROSCOPE'S CHOICE OF EIGHT NEW RELEASES INCLUDED FOUR FRENCH TWO AMERICAN ONE CANADIAN AND ONE FINNISH JURASSIC PARK WAS INDEED ON VIEW AT 16 PARISIAN VENUES BUT MR TOUBON HAD JUST AS MANY THEATERS IN WHICH HE COULD REAFFIRM HIS NATIONAL IDENTITY BY WATCHING LES MARMOTTES THE MARMOTS A VERY HOMEGROWN ROMANTIC COMEDY IN WHICH SEVERAL PAIRS OF FRENCH YUPPIES REPAIR TO A SKI VILLAGE AND BECOME EMBROILED IN AMOROUS DIFFICULTIES FINANCED BY THE INDEPENDENT TELEVISION CHANNEL CANAL PLUS LES MARMOTTES IS ATTRACTIVE FLUFF THAT WOULD REMIND AN AMERICAN OF THIRTYSOMETHING OR THE BIG CHILL LIKE ALMOST EVERY OTHER LIVING FRENCH CITIZEN MR TOUBON PROBABLY ALSO WENT TO SEE LES VISITEURS THE VISITORS A TRULY HILARIOUS TIMETRAVEL FARCE IN WHICH A GROSS BUT GOODHEARTED MEDIEVAL KNIGHT AND HIS SQUIRE FIND THEMSELVES TRANSPORTED TO TODAY THERE THEY MEET THE KNIGHT'S DIRECT DESCENDANT A COUNTESS THIS CHARACTER'S MUMBLING ARISTOCRATIC SPEECH CONVULSED ALL OF FRANCE THE ODD WAY SHE SAYS OK CAUGHT ON WITH FRENCH TEENAGERS PERHAPS THIS IS AN EXAMPLE OF WHAT LE MONDE RECENTLY CALLED THE PARASITICAL ENGLISH INFECTION OF THE FRENCH TONGUE BUT IT OCCURRED BECAUSE OF THE MOST POPULAR FRENCH FILM IN FRANCE IN MANY YEARS AND THAT FILM'S UPROARIOUS HUMOR IS BUILT ON INTRICATE JOKING OVER FRENCH DICTION THE KNIGHT AND SQUIRE CONVERSE IN THE ARCHAIC LANGUAGE OF FRENCH MEDIEVAL ROMANCE THE COUNTESS SPEAKS HER HIGHBORN BROGUE AND THE SQUIRE FALLS IN WITH A BAG LADY GIVEN TO OUTBURSTS OF BROAD MODERN STREET SLANG WOULD LES VISITEURS WORK FOR FOREIGN AUDIENCES IF PROPERLY PROMOTED WHY NOT A LOT WOULD BE LOST IN TRANSLATION BUT ENGLISH HAS ITS ARCHAIC SPEECH ITS ARISTOCRATIC AND STREET DIALECTS ONCE THE SUBTITLES WERE IN PLACE THE REST WOULD BE GRAVY SAUCE OR IS IT UNEQUIVOCALLY TRUE AS FRENCH APOLOGISTS FOR THE POOR PERFORMANCE OF MOST FRENCH FILMS IN THE US MARKET HAVE OFTEN SAID THAT TODAY'S US AUDIENCES WON'T GO TO FOREIGN FILMS A SERIOUS TEST OF THIS PROPOSITION IS ABOUT TO TAKE PLACE A WELLKNOWN AND GIFTED FRENCH DIRECTOR CLAUDE BERRI HAS MADE A TWOHOURPLUS VERSION OF GERMINAL EMILE ZOLA'S MONUMENTAL REALIST NOVEL OF MISERY SET IN A FRENCH COALMINING TOWN THE FILM IS UNREMITTINGLY GRIM THE CAMERA FAITHFUL TO ZOLA'S RELENTLESS REPORTAGE IN THE LATE 19TH CENTURY FOLLOWS STARVING SOOTBLACK MINERS INTO THE PIT PEERS INTO THEIR HOVELS EXPLORES THE DECADENCE OF THE HOME LIFE OF THE MINE'S OWNERS AND THEN EXPLODES INTO A BLOODY STRIKE MR BERRI'S GERMINAL IS IN NO SENSE A STUFFY FILMIZATION OF A CLASSIC IT MAKES THE SOCIAL PROTEST IN THE BRITISH LITERARY FILMS OF JAMES IVORY LOOK LIKE PRETTY TEA PARTIES IN GERMINAL PEOPLE DIE IN A GHASTLY MINE ACCIDENT AND ANGRY WOMEN CASTRATE A SHOPKEEPER WHO WON'T EXTEND THEM CREDIT HOLDING HIS BLOODY MANHOOD UP FOR ALL TO SEE GERMINAL SAID TO BE THE MOST EXPENSIVE FRENCH FILM EVER MADE ALSO HAS GERARD DEPARDIEU AS ITS STAR AND IT HAS US DISTRIBUTION SONY CLASSICS WILL BE SCREENING IT FOR A FEW DAYS LATER THIS MONTH IN LOS ANGELES SO THAT IT CAN QUALIFY FOR THE OSCARS US NEGOTIATORS FOR GATT MIGHT POINT TO THIS INTERNATIONAL EVENT A FRENCHMADE FILM BASED ON A FRENCH SOCIALIST NOVEL BROUGHT TO THE US BY A JAPANESE COMPANY AS A MODEL OF WHAT FREE EXCHANGE CAN MEAN 9312060053 931206 MANAGER'S JOURNAL WAY TO JAPANESE HEART IS THROUGH THE MAIL BY JUSTIN DOEBELE SOME OF RETAILING'S HOUSEHOLD NAMES ARE DISCOVERING A WAY TO DODGE JAPAN'S FRUSTRATING DISTRIBUTION SYSTEM AND TAP INTO THE CONSUMER MARKET LL BEAN LANDS' END PATAGONIA AND OTHER CATALOGDRIVEN COMPANIES ARE ESTABLISHING A FOOTHOLD IN JAPAN WHERE MAILORDER SALES ARE EXPECTED TO MUSHROOM TO 50 BILLION A YEAR BY THE END OF THE DECADE FROM ABOUT 12 BILLION A YEAR NOW DIRECT MARKETING THROUGH CATALOGS IS ONE ANSWER TO THE PERENNIAL COMPLAINT OF US FIRMS THAT THE JAPANESE DISTRIBUTION SYSTEM IS A STRUCTURAL TRADE BARRIER THAT BLOCKS ACCESS TO A LUCRATIVE CONSUMER MARKET PATAGONIA'S CATALOG SALES TOOK OFF AFTER IT BEGAN PUBLISHING JAPANESELANGUAGE VERSIONS LATE LAST YEAR THE JAPANESE CATALOG DRAMATICALLY INCREASED SALES SAYS KATSUMI FUJIKURA THE COMPANY'S JAPAN MARKETING DIRECTOR PATAGONIA IS TARGETING A 42 JUMP IN MAILORDER SALES NEXT YEAR TO 25 MILLION INDUSTRY HEAVYWEIGHTS LL BEAN AND LANDS' END ALSO ARE MAKING HEADWAY IN JAPAN LL BEAN'S CATALOG SALES NEARLY DOUBLED TO 26 MILLION IN 1992 FROM 14 MILLION IN 1991 EVEN THOUGH IT OFFERS ONLY A JAPANESELANGUAGE INSERT IN ITS TRADITIONAL CATALOG THE COMPANY THROUGH A JOINT VENTURE HAS OPENED TWO RETAIL STORES IN JAPAN IN LESS THAN A YEAR PART OF A PLANNED FIVESTORE CHAIN LANDS' END MEANWHILE HAS BEGUN TO RECRUIT STAFF IN JAPAN FOR A JAPANBASED OPERATION COMPLETE WITH JAPANESELANGUAGE CATALOGS AND YENDENOMINATED GOODS ACCORDING TO COMPANY OFFICIALS THE LAUNCH IS SET FOR 1994 JAPAN PRESENTS OPPORTUNITIES FOR DIRECT MARKETING SAYS FRED ELLIOTT INTERNATIONAL TRADE SPECIALIST WITH THE COMMERCE DEPARTMENT HE HAS BEEN LEADING ANNUAL TRIPS TO JAPAN FOR US DIRECT MARKETERS SINCE 1991 AND CLAIMS THAT US FIRMS ENJOY AN ADVANTAGE OVER JAPANESE RIVALS BECAUSE OF THEIR EXPERIENCE IN THE COMPETITIVE US MARKETPLACE US COMPANIES GENERALLY FIND THE JAPANESE POSTAL SYSTEM RELATIVELY EFFICIENT AND EVEN HELPFUL SOME 50 MAJOR POST OFFICES IN JAPAN DISPLAY FOREIGN CATALOGS AND TAKE ORDERS THERE ARE PITFALLS HOWEVER JAPAN LACKS A WELLDEVELOPED MAILINGLIST INDUSTRY MAILING LISTS ARE OFTEN DIRTY WARNS MR ELLIOTT MEANING THEY MAY INCLUDE INCORRECT ADDRESSES OR BE OUT OF DATE BUT SUPPORT SERVICES ARE COMING ON LINE FOR US MARKETERS FROST INTERNATIONAL GROUP BASED IN OREGON RENTS A DATABASE OF 25 MILLION JAPANESE NAMES THAT CAN BE TAILORED INTO CLEARLY FOCUSED LISTS THE MAILORDER INDUSTRY IN JAPAN IS BEING DRIVEN BY THE SAME FORCE THAT PROPELS THE US MARKET WHO HAS TIME TO SHOP JAPANESE LIVES ARE GROWING MORE HECTIC AND MORE WOMEN ARE JOINING THE WORK FORCE THE STRONGEST CATALOG SALES SAYS PATAGONIA'S MR FUJIKURA COME FROM URBAN AREAS LIKE TOKYO THE INDUSTRY ALSO HAS GONE A LONG WAY TO CHANGE THE IMAGE OF QUESTIONABLE QUALITY THAT HAS HAMPERED THE MARKET IN JAPAN IT USED TO BE AN UNRELIABLE MINOR BUSINESS SAYS MR FUJIKURA THIS IMAGE IS BEING DISPELLED AS MORE COMPANIES RUSH TO OFFER QUALITY GOODS AT PRICES OFTEN BELOW THOSE OF DEPARTMENT STORES THE INDUSTRY HAS PLENTY OF ROOM TO GROW IF THE US MARKET IS ANY GUIDE MAILORDER SALES IN JAPAN ARE JUST 13 OF TOTAL RETAIL SALES WHILE THEY ARE 48 OF US RETAIL SALES AND THE JAPANESE HAVE YET TO BECOME JADED BY AN AVALANCHE OF UNSOLICITED MAIL THE AVERAGE JAPANESE RECEIVES 166 PIECES OF MAIL A YEAR VS MORE THAN 600 FOR AMERICANS SOME JAPANESE ARE EVEN WILLING TO GO TO GREAT LENGTHS TO GET MAILORDER MERCHANDISE AS SURPRISED LANDS' END OFFICIALS FOUND ON A RECENT TRIP TO JAPAN WHERE FASHION MAGAZINES WERE RUNNING ARTICLES EXPLAINING HOW TO ORDER FROM US CATALOGS THE INTERNATIONAL CACHET OFFERED BY THE PRODUCTS OF US AND OTHER FOREIGN FIRMS HELPS THEM CASH IN ON THE JAPANESE MARKET INDUSTRY EXECUTIVES SAY AMERICAN COMPANIES' PRODUCTS HAVE AN EDGE IN THE IMAGE BUSINESS SAYS MR FUJIKURA BUT WHILE A RECOGNIZED US BRAND NAME MIGHT PERSUADE A SHOPPER TO MAKE A FIRST PURCHASE MR FUJIKURA CAUTIONS THAT US COMPANIES MUST ALSO HAVE THE QUALITY TO ENSURE REPEAT BUSINESS PATAGONIA'S APPROACH TO QUALITY INCLUDES CUSTOMERSERVICE REPRESENTATIVES WHO DON'T PUSH PRODUCTS BUT WILL OFFER ADVICE FOR EXAMPLE TO A JAPANESE CUSTOMER ON THE BEST CLOTHES TO TAKE ON A US BACKPACKING TRIP MR FUJIKURA SAYS PATAGONIA ALSO PROMOTES AN IMAGE OF ENVIRONMENTAL AWARENESS THROUGH ITS INVOLVEMENT IN ENVIRONMENTAL CAUSES IN JAPAN DIRECT MARKETERS SEEKING TO ESTABLISH BUSINESS IN JAPAN SHOULD BE PREPARED TO MAKE A SUSTAINED COMMITMENT OVER A PERIOD OF YEARS SAYS A COMMERCE DEPARTMENT BROCHURE GIVEN TO MEMBERS OF THIS YEAR'S TRADE DELEGATION SUCH PATIENCE CAN PRODUCE DIVIDENDS ONCE A US COMPANY HAS HOOKED THE LEGENDARY CUSTOMER LOYALTY OF THE JAPANESE THE JAPANESE SPEND MORE RETURN LESS AND BUY MORE OFTEN THAN AMERICANS MAILORDER EXECUTIVES SAY MR ELLIOTT WARNS THERE IS NO SINGLE PATH TO SUCCESS IN THE JAPANESE MAILORDER MARKET BUT HE RECOMMENDS TAKING THE PLUNGE THE INDUSTRY IS JUST GETTING GOING HE SAYS GET ESTABLISHED NOW MR DOEBELE IS A WRITER BASED IN NEW YORK HE LIVED IN JAPAN FOR THREE YEARS COVERING BUSINESS AND FINANCE IN ASIA 9312060052 931206 LORENZO LOSES ROUND IN BID FOR CLEARANCE ON AIRLINE WASHINGTON TRANSPORTATION DEPARTMENT LAWYERS SAID FRANK LORENZO SHOULD BE DENIED PERMISSION TO START AN AIRLINE ECHOING UNION OFFICIALS WHO BLAMED HIM FOR SAFETY PROBLEMS AT EASTERN AIRLINES WHILE THE GOVERNMENT IS STILL TWO STEPS AWAY FROM A FINAL DECISION IN THE MATTER THE RECOMMENDATION BY THE TRANSPORTATION DEPARTMENT'S PUBLIC COUNSEL FRIDAY GREATLY INCREASES THE ODDS AGAINST MR LORENZO'S COMPANY ATX INC WHICH IS SEEKING TO LAUNCH LOWFARE SERVICE FROM BALTIMORE AND OTHER AIRPORTS TRANSPORTATION SECRETARY FEDERICO PENA DELAYED A DECISION ON THE MATTER LAST OCTOBER IN LARGE PART TO HEAR FROM THE PUBLIC COUNSEL WHICH IS SUPPOSED TO ARGUE FOR THE PUBLIC INTEREST IN SUCH MATTERS IN ITS RECOMMENDATION FRIDAY THE COUNSEL SAID EASTERN HAD A DISMAL SAFETY COMPLIANCE RECORD AND EXTREME LABOR PROBLEMS WHILE MR LORENZO WAS IN CHARGE AND THAT ATX DOESN'T HAVE THE MANAGERIAL COMPETENCE OR COMPLIANCE DISPOSITION TO WIN PERMISSION TO FLY EASTERN CEASED OPERATIONS THREE YEARS AGO ATX OFFICIALS INSISTED THE RECOMMENDATION WASN'T A SEVERE SETBACK BUT THEY ALSO FUMED THAT THE LAWYERS WERE MOTIVATED BY POLITICS THE PUBLIC COUNSEL'S OFFICE MADE UP OF LAWYERS FROM THE TRANSPORTATION DEPARTMENT AND THE FEDERAL AVIATION ADMINISTRATION MADE ITS RECOMMENDATION WITHOUT CONSULTING WITH ADMINISTRATION POLICY MAKERS ACCORDING TO TRANSPORTATION DEPARTMENT OFFICIALS 9312060051 931206 GM ORDERS RECALL OF SPORTS CARS TO CHECK FUEL LINE BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SAID IT WILL LAUNCH A RECALL THIS WEEK TO CHECK FOR A PROBLEM THAT COULD CAUSE ENGINECOMPARTMENT FIRES IN SOME OF ITS MOST POPULAR SPORTS CARS GM SAID THE RECALL WILL INVOLVE 6807 CAMARO Z28 FIREBIRD FORMULA AND FIREBIRD TRAN AM MODELS EQUIPPED WITH 57LITER V8 ENGINES THE SISTER MODELS WHICH ARE SOLD BY GM'S CHEVROLET AND PONTIAC DIVISIONS WERE REDESIGNED EARLIER THIS YEAR AND HAVE BEEN A HIT IN THE MARKET OWNERS ARE TO BE NOTIFIED THIS WEEK TO TAKE THEIR CARS TO CHEVY OR PONTIAC DEALERS FOR INSPECTION AND POSSIBLE REPAIR GM SAID THE NATIONAL HIGHWAY TRANSPORTATION SAFETY ADMINISTRATION IS BEING NOTIFIED IN A BULLETIN TO DEALERS CHEVY SAID THAT IN SOME OF THE VEHICLES THE FUEL LINE MAY PASS TOO CLOSE TO AN EMISSIONSCONTROL VALVE ON THE EXHAUST MANIFOLD THE VALVE COULD GET HOT ENOUGH TO MELT A HOLE IN THE FUEL LINE THE COMPANY SAID FUEL LEAKING FROM SUCH A HOLE COULD CAUSE A FIRE ALTHOUGH A SPOKESMAN SAID NO ENGINE FIRES HAVE BEEN REPORTED GM IS TELLING DEALERS TO INSPECT THE FUELLINE ROUTING AND FIX IT IF IMPROPER ANY HEATDAMAGED FUEL LINES ARE TO BE REPLACED A GM SPOKESMAN SAID THE PROBLEM WAS DISCOVERED DURING INSPECTIONS AT THE STE THERESE QUEBEC ASSEMBLY PLANT WHERE THE CARS ARE BUILT THE MAJORITY OF THE AFFECTED CARS HAVEN'T YET BEEN DELIVERED TO RETAIL CUSTOMERS GM SAID SEPARATELY CHEVROLET CONFIRMED THAT IT HAS ADVISED DEALERS OF A POTENTIAL PROBLEM INVOLVING AUTOMATIC TRANSMISSIONS OFFERED ON THE FULLSIZE CAPRICE SEDAN AND ON ITS C K S AND T SERIES OF TRUCKS CHEVY SAID IT ISN'T RECALLING THE VEHICLES ONLY ADVISING DEALERS WHAT TO LOOK FOR IN MAKING TRANSMISSION REPAIRS IN A SERVICE BULLETIN TO DEALERS CHEVY SAID CERTAIN HYDRAMATIC 4L60E ELECTRONICALLY CONTROLLED FOURSPEED AUTOMATIC TRANSMISSIONS MAY EXHIBIT A CONDITION OF NO REVERSE AND/OR LACK OF POWER IN SECOND GEAR IT SAID THIS MAY RESULT FROM AN IMPROPERLY ADJUSTED SHIFT LINKAGE A CHEVY SPOKESMAN SAID THAT FIVE SUCH CASES HAVE SHOWN UP IN WARRANTYCLAIMS REPORTS AND THAT THERE HAVEN'T BEEN ANY ACCIDENTS OR INJURIES ASSOCIATED WITH THE PROBLEM THE SPOKESMAN COULDN'T SAY HOW MANY VEHICLES COULD BE AFFECTED 9312060050 931206 TECHNOLOGY & HEALTH MAMMOGRAM STARTING AGE RISES TO 50 UNDER NEW FEDERAL RECOMMENDATIONS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL A US GOVERNMENT AGENCY ISSUED NEW RECOMMENDATIONS ON ROUTINE MAMMOGRAPHY CONCEDING THE BENEFITS ARE UNCLEAR FOR WOMEN IN THEIR 40S AND REAFFIRMING THAT SCREENING REDUCES CANCER DEATHS AMONG OLDER WOMEN THE NEW POLICY PULLS BACK FROM EARLIER GUIDELINES THAT RECOMMENDED WOMEN RECEIVE MAMMOGRAMS EVERY YEAR OR TWO FROM 40 TO 49 SUGGESTING INSTEAD THAT WOMEN IN THEIR 40S DISCUSS SCREENING WITH THEIR DOCTORS THE POLICY STILL RECOMMENDS REGULAR SCREENING EVERY YEAR OR TWO FOR WOMEN 50 AND OLDER THE AMERICAN CANCER SOCIETY WHICH HAS LONG PROMOTED THE BENEFITS OF MAMMOGRAPHY SAID IT WILL CONTINUE TO RECOMMEND TESTING FOR WOMEN IN THEIR 40S AFTER WEEKS OF PUBLIC DEBATE THE NATIONAL CANCER INSTITUTE ON FRIDAY SAID THAT WHILE STUDIES CONCLUSIVELY PROVE MAMMOGRAPHY CUTS BREASTCANCER DEATHS BY A THIRD AMONG WOMEN 50 AND OLDER STUDIES AMONG WOMEN IN THEIR 40S ARE STATISTICALLY INCONCLUSIVE EXPERTS DO NOT AGREE ON THE ROLE OF MAMMOGRAPHY FOR WOMEN AGES 40 TO 49 THE NCI SAID TO DATE RANDOMIZED CLINICAL TRIALS HAVE NOT SHOWN A STATISTICALLY SIGNIFICANT BENEFIT FOR WOMEN UNDER 50 THE NCI'S CONCLUSIONS FOLLOW ANALYSIS OF EIGHT MAJOR CLINICAL TRIALS IT'S SIMPLE DISAPPOINTING BUT SIMPLE EXPLAINED EDWARD SONDIK DEPUTY DIRECTOR OF NCI'S DIVISION OF CANCER PREVENTION AND CONTROL FOR WOMEN 40 TO 49 FOLLOWED FOR FIVE TO SEVEN YEARS AFTER THE START OF SCREENING THERE IS NO DIFFERENCE IN BREAST CANCER DEATHS BETWEEN THOSE WHO RECEIVED MAMMOGRAMS AND THOSE WHO DID NOT AFTER STUDYING THOSE SAME WOMEN FOR A DECADE DR SONDIK NOTED WE START TO SEE A DIFFERENCE IN MORTALITY BUT THAT DIFFERENCE ISN'T STATISTICALLY SIGNIFICANT WE DON'T KNOW IF IT'S REAL OR DUE TO CHANCE STUDIES IN SWEDEN AND ENGLAND CONTINUE TO PROBE FOR POSSIBLE BENEFITS OF MAMMOGRAPHY FOR WOMEN IN THEIR 40S BUT FOR NOW IN THE FACE OF INCONCLUSIVE DATA DR SONDIK SAYS EXPERTS CAN ONLY AGREE TO DISAGREE YOUNGER WOMEN HAVE A LOWER INCIDENCE OF BREAST CANCER AND SMALLER NUMBERS MAKE IT HARDER TO DRAW A STATISTICALLY RELEVANT CONCLUSION THEY ALSO HAVE DENSER BREAST TISSUE IN WHICH MALIGNANT LUMPS ARE MORE DIFFICULT TO DETECT UNCONVINCED THE AMERICAN CANCER SOCIETY IS HEWING TO ITS OLD LINE NEARLY TWO MILLION WOMEN IN THE US WILL BE DIAGNOSED WITH BREAST CANCER IN THE 1990S AND ABOUT 460000 WILL DIE THE SOCIETY SAYS ABOUT 20 OF THESE CASES WILL HIT WOMEN IN THEIR 40S BLASTING NCI'S NEW GUIDELINES AS CONFUSING AND ALIENATING THE SOCIETY INSISTS THAT INCONCLUSIVE STUDY DATA ALONE AREN'T GROUNDS FOR ABANDONING MAMMOGRAMS FOR WOMEN IN THEIR 40S NCI'S DR SONDIK COUNTERS AS A SCIENCE AGENCY WE FEEL IT'S OUR ROLE TO SAY WHAT WE KNOW AND WHAT WE DON'T KNOW HE STRESSED THERE IS NO CHANGE IN THE GUIDELINES FOR WOMEN 50 AND OLDER AND URGED THERE BE NO SLACKENING FOR THIS GROUP NOR IS THERE ANY CHANGE IN THE BELIEF THAT WOMEN WITH A FAMILY HISTORY OF BREAST CANCER SHOULD BE SCREENED REGULARLY WHILE THE INSURANCE INDUSTRY HAS YET TO REACT TO THE NEW POLICY SOME FEAR THAT COMPANIES WILL SEE THE ABSENCE OF A FEDERAL MANDATE AS AN EXCUSE TO DENY REIMBURSEMENT FOR WOMEN IN THEIR 40S THE AMERICAN CANCER SOCIETY HAS URGED INSURANCE COMPANIES NOT TO RETREAT FROM MAMMOGRAPHY COVERAGE 9312060048 931206 JAPAN PROPOSAL COULD BE BOOST FOR TRANSPLANTS ALLOWING REMOVAL OF ORGANS FROM DEAD MAY ALTER ATTITUDES DRUG MARKET SPECIAL TO THE WALL STREET JOURNAL LONDON A JAPANESE GOVERNMENT PROPOSAL TO ALLOW A DEAD PERSON'S ORGANS TO BE REMOVED IS EXPECTED TO GIVE THE RAPIDLY GROWING GLOBAL MARKET FOR ORGAN TRANSPLANTS A LIFT ACCORDING TO JAPANESE NEWS REPORTS A GOVERNMENT ADVISORY COMMITTEE PROPOSED THAT ORGANS FROM PEOPLE CERTIFIED AS BRAIN DEAD SHOULD BE GIVEN THE GOAHEAD FOR REMOVAL IF ADOPTED BY THE GOVERNMENT THIS WOULD END JAPAN'S STATUS AS THE ONLY MAJOR MARKET IN THE WORLD WHERE ORGAN TRANSPLANTS HAVE BEEN TABOO THERE HAS BEEN A CULTURAL ANTIPATHY FOR ORGAN TRANSPLANTS IN JAPAN THIS HAS FORCED JAPANESE WHO NEED A TRANSPLANT TO GO TO HONG KONG AUSTRALIA OR SOMEWHERE ELSE SAYS ERLING REFSUM PHARMACEUTICALS ANALYST AT NOMURA INTERNATIONAL IN LONDON TYPICALLY THE ADVISORY GROUP'S PROPOSALS ARE FOLLOWED BY THE GOVERNMENT IF APPROVED THE AFFLUENT JAPANESE MARKET COULD PROVE A KEY GROWTH AREA FOR THE DRUG COMPANIES THAT ARE ACTIVE IN THE AREA TWO COMPANIES STAND OUT IN THE FIELD SANDOZ AG OF SWITZERLAND AND JAPAN'S FUJISAWA PHARMACEUTICAL CO IN ZURICH SANDOZ'S SHARES WERE QUOTED AT 3890 SWISS FRANCS 259930 DOWN 20 FRANCS FUJISAWA SHARES ROSE IN JAPAN TO CLOSE 90 YEN HIGHER AT 1080 YEN 993 PETER MCDOUGALL DRUG ANALYST AT BARCLAYS DE ZOETE WEDD LTD IN LONDON SAYS THE MOVE WOULD GIVE THE TRANSPLANT INDUSTRY A HUGE BOOST MR MCDOUGALL POINTS OUT THE JAPANESE MARKET IS THE WORLD'S THIRD LARGEST FOR DRUG MANUFACTURERS OPENING THE JAPANESE MARKET COULD ADD ANOTHER 10 TO THE GLOBAL IMMUNOSUPPRESSANT INDUSTRY IN THE NEXT 10 YEARS HE SAYS IMMUNOSUPPRESSANTS HELP THE BODY FIGHT ORGAN REJECTION IN TRANSPLANTS THE RECOMMENDATION OF THE JAPANESE GOVERNMENT COMMITTEE COINCIDENTLY COMES AFTER FUJISAWA'S INTRODUCTION IN JUNE OF ITS IMMUNOSUPPRESSANT PROGRAF FK506 SANDOZ MARKETS THE WORLD'S NO 1 IMMUNOSUPPRESSANT SANDIMMUN THE DRUG IS SANDOZ'S STAR PRODUCT WITH SALES ACCOUNTING FOR 15 OF THE COMPANY'S TOTAL REVENUE PROFIT FROM SANDIMMUN SALES ACCOUNT FOR 20 OF THE COMPANY'S BOTTOM LINE SALES HAVE BEEN GROWING IN DOUBLEDIGITS FOR THE PAST SIX YEARS AND ARE EXPECTED TO CONTINUE AT THAT PACE FOR THE FORSEEABLE FUTURE MR MCDOUGALL SAYS WHEN FUJISAWA'S PROGRAF WAS LAUNCHED INITIAL REVENUE WERE FORECAST AT 100 MILLION YEN FOR THE YEAR IT SOON WILL BE AVAILABLE IN THE US IN LATE NOVEMBER A US FOOD & DRUG ADMINISTRATION COMMITTEE RECOMMENDED APPROVAL OF THE USE OF PROGRAF IN LIVER TRANSPLANTS WHICH ACCOUNT FOR ABOUT 20 OF ALL ORGAN TRANSPLANTS THIS IS A VERY POSITIVE THING FOR SANDOZ AS FUJISAWA ISN'T A DANGEROUS COMPETITOR AND SANDOZ IS THE WORLDWIDE LEADER SAYS MIRKO SANGIORGIO ANALYST AT BANK JULIUS BAER SALES OF SANDIMMUN TOTALED 111 BILLION SWISS FRANCS IN 1992 AND ARE EXPECTED TO GROW 13 TO TOP 125 BILLION FRANCS IN 1993 IN TWO YEARS SALES COULD REACH TWO BILLION FRANCS WORLDWIDE A SPOKESMAN FOR SANDOZ IN BASEL SWITZERLAND WELCOMED THE PROPOSAL IN JAPAN AND NOTED THAT SANDIMMUN IS THE ONLY REGISTERED IMMUNOSUPPRESSANT FOR KIDNEY TRANSPLANTS IN JAPAN THIS IS OBVIOUSLY GOOD NEWS HE SAID ORGAN TRANSPLANTS HAVE GROWN MARKEDLY IN THE DEVELOPED WORLD IN RECENT YEARS PARTLY AS A RESULT OF TECHNOLOGY BUT ALSO BECAUSE THERE ARE SEVERAL INTERNATIONAL ORGANIZATIONS THAT PROVIDE A DONOR MATCHING SERVICE HOWEVER THE GAP BETWEEN THE NUMBER OF PATIENTS REQUIRING ORGANS AND THE SUPPLY OF ORGANS HAS WIDENED 9312060047 931206 THE OUTLOOK TAXES WILL GO HIGHER SO WILL SPENDING FALL BY FRED R BLEAKLEY NEW YORK JUST WHEN IT SEEMED CONSUMERS HAD SOBERED UP FROM THE LATE 1980S STATISTICS REMIND US THEY ARE STILL BORROWING FROM THE FUTURE TO SPEND MORE BESIDES CHARGING MORE PURCHASES TO CREDIT CARDS WAGE EARNERS HAVE LET THEIR SAVINGS RATE SLIDE LOWER AND LOWER WHILE THIS TENDENCY TO SPEND RATHER THAN SAVE HAS KEPT THE ECONOMY AFLOAT THIS YEAR AND IS NOW GIVING IT A REAL KICK THINGS ARE NOT LIKELY TO STAY THAT WAY BIG SPENDERS INDIVIDUALS WITH TAXABLE INCOME OVER 115000 AND MARRIED COUPLES FILING JOINTLY WITH INCOMES OVER 140000 WILL TAKE A MAJOR TAX HIT NEXT YEAR THEY WILL PAY 36 INSTEAD OF 31 ON TAXABLE INCOME OVER THOSE AMOUNTS THOSE EARNING ABOVE 250000 WILL PAY 396 ON THE INCREMENT AN EXISTING PHASEOUT OF DEDUCTIONS WILL CARRY THE EFFECTIVE RATE SEVERAL POINTS HIGHER FOR SOME AND THE 145 MEDICARE LEVY WILL NO LONGER APPLY ONLY TO THE FIRST 135000 OF INCOME THE CHOICE FOR MANY PEOPLE FACED WITH A RETROACTIVE RISE IN 1993 TAXES AS WELL WILL BE WHETHER TO HIT THE BRAKES ON SPENDING OR TO DIP INTO SAVINGS TO MAINTAIN IT THIS IS AMONG THE ECONOMY'S MOST PRESSING QUESTIONS AS PREDICTIONS FOR NEXT YEAR'S GROWTH RATE NOW RANGE EVEN WIDER THAN USUAL ECONOMIST NEAL SOSS OF FIRST BOSTON FOR ONE THINKS INDIVIDUALS WILL CUT A LITTLE OUT OF BOTH THEIR SPENDING AND THEIR SAVINGS A LOW SAVINGS RATE IS DANGEROUS BECAUSE OVER THE LONG RUN IT FORCES THE GOVERNMENT AND COMPANIES TO PAY MORE FOR MONEY PUTTING THEM AT A DISADVANTAGE INTERNATIONALLY AND THE US DOES HAVE A LOW SAVINGS RATE JAPAN AND GERMANY HAVE LONG HAD RATES TWO TO THREE TIMES THAT OF THE US MOREOVER AMERICA'S HAS BEEN SLIPPING FROM 52 OF ADJUSTED GROSS INCOME LAST YEAR SAVINGS FELL TO AN AVERAGE OF JUST UNDER 42 FOR THE FIRST NINE MONTHS THIS YEAR THIS IS A WARNING SIGN SAYS DONALD STRASZHEIM CHIEF ECONOMIST OF MERRILL LYNCH & CO PEOPLE CAN SPEND FASTER THAN THEY EARN NOW AND THEN BUT NOT ON AND ON THE RATE IS COMING DOWN BECAUSE EXPENDITURES ARE GROWING FASTER THAN INCOME IT'S COMPLETELY NORMAL FOR THE SAVINGS RATE TO DECLINE IN THE EARLY STAGES OF AN ECONOMIC RECOVERY NOTES H ERIC HEINEMANN CHIEF ECONOMIST OF LADENBURG THALMANN & CO BUT THE SAVINGS RATE IS NOW SENDING A YELLOW SIGNAL ON FUTURE SPENDING LEVELS BECAUSE IT HAS BEEN DECLINING FROM SUCH A LOW POINT HE ADDS IN THE 1970S IT HAD RUN IN THE 9 TO 10 RANGE THERE ARE SEVERAL REASONS WHY CONSUMER SPENDING NEXT YEAR MAY BE WEAKER THAN MANY EXPECT FOR ONE BABY BOOMERS ARE CREEPING TOWARD THE AGE WHEN RETIREMENT RATHER THAN THE NEXT PROMOTION IS ON THEIR MINDS SOME SIGNS OF SPENDING RESTRAINT ARE ALREADY SHOWING GIVEN THERE'S A 14YEAR HIGH IN THE SALE OF EXISTING HOMES WE'RE NOT SEEING AS MUCH REPAIR AND MODERNIZATION EXPENDITURES AS MIGHT BE EXPECTED MR HEINEMANN NOTES MORE OF INCOME WOULD HAVE GONE INTO SAVINGS THIS YEAR BUT FOR THE BOOMING STOCK AND BOND MARKETS SAYS IRWIN KELLNER CHIEF ECONOMIST AT CHEMICAL BANKING CORP STOCKS ALONE HAVE GAINED 380 BILLION THIS YEAR BESIDES GIVING INVESTORS PROFITS TO SPEND SUCH A RISE TENDS TO MAKE THEM FEEL RICHER AND THUS IN LESS NEED OF SAVINGS THE SOCALLED WEALTH EFFECT HOWEVER THERE MAY NOT BE AS MUCH PUNCH LEFT IN THE WEALTH EFFECT AS STOCK AND BOND PRICES MEANDER CONSUMER SPENDING ALSO GOT EXTRA HELP THIS YEAR FROM ALL THE REFINANCING OF MORTGAGES THOUGH NOT A PART OF THE INCOME/SAVINGS RATE CALCULATION THE BENEFITS OF THOSE FIXEDRATE LOANS AT LOWER RATES WILL CONTINUE FOR YEARS BUT A TREND TO HIGHER RATES SUCH AS MANY ECONOMISTS EXPECT WOULD PRESUMABLY THROTTLE DOWN THE REFINANCING MEANWHILE EVEN THOUGH A TILT TOWARD SAVINGS MAY WELL BE IN THE OFFING THE ACTUAL SAVINGS RATE MAY STILL DECLINE WITH LITTLE JOB AND WAGE GROWTH EXPECTED IT WILL BE TOUGHER TO STASH MONEY AWAY ALSO THE CLINTON TAX ACT STRIKES A DIRECT BLOW AT SAVINGS THROUGH REDUCTIONS IN THE AMOUNT OF INCOME THAT CAN FLOW TAXFREE INTO SAVINGS PROGRAMS LIKE KEOGH AND 401K PLANS INDEED WITHOUT NEW INCENTIVES EITHER TO BUSINESS FOR INVESTMENTS OR TO INDIVIDUALS FOR STOCK AND BOND PURCHASES WHAT WE HAVE IS A TAX POLICY THAT IS ANTICAPITAL FORMATION SAYS MICHAEL COSGROVE A DALLAS ECONOMIST WHO WRITES A NEWSLETTER THE ECONOCLAST THE NEW CUTOFF FOR TAXFREE INVESTMENTS FOR INDIVIDUALS AS WELL AS MARRIED COUPLES IS 150000 OF ADJUSTED GROSS INCOME DOWN FROM ALMOST 236000 LIMITING TAXFREE INVESTMENTS TO A PERCENTAGE OF 150000 INSTEAD OF THE HIGHER FIGURE WILL AFFECT NOT ONLY KEOGH 401K AND SOME PROFITSHARING PLANS BUT ALSO THE MAXIMUM ACCRUALS UNDER CORPORATE DEFINEDBENEFIT PLANS SOME 60 BILLION A YEAR FLOWS INTO 401K PLANS THESE DAYS UNLESS EMPLOYERS KICK IN EXTRA MONEY OR DEVISE NEW PLANS TO COMPENSATE EXECUTIVES THE AMOUNT AVAILABLE TO AFFECTED INDIVIDUALS FOR RETIREMENT AS WELL AS CURRENT INVESTMENT WILL BE SIGNIFICANTLY REDUCED SAYS DAVID PLACE A CONSULTANT AT PRICE WATERHOUSE ADDING MOST PEOPLE DON'T KNOW THIS YET WHILE SOME INDIVIDUALS MAY CUT SPENDING TO MAKE THE SAME PENSION OR PROFITSHARING CONTRIBUTIONS NOT ALL WILL MY CONCLUSION IS THE TAX INCREASE WILL CUT INTO SAVINGS AND GENERATE MORE PRESSURE FOR THE GOVERNMENT TO BORROW ABROAD SAYS DALE JORGENSON A PROFESSOR AT HARVARD UNIVERSITY AND THAT RAISES OTHER QUESTIONS FOR ECONOMIC FORECASTERS CHIEF AMONG THEM HOW HIGH WOULD INTEREST RATES HAVE TO GO AND WITH WHAT ECONOMIC IMPACT TO ATTRACT FOREIGN INVESTORS AWAY FROM THEIR OWN MARKETS 9312060046 931206 LEISURE & ARTS TELEVISION DIVINE MISS M AS MME ROSE BY ROBERT GOLDBERG IRVING BERLIN AND COLE PORTER BOTH TURNED IT DOWN BUT JEROME ROBBINS ARTHUR LAURENTS AND STEPHEN SONDHEIM DIDN'T AND SO ONE OF THE CLASSIC MUSICAL COMEDIES WAS BORN IN 1959 GYPSY THE STORY OF ROSE HOVICK THE ULTIMATE STAGE MOTHER FROM HELL AND HER DAUGHTER LOUISE WHO WOULD GROW UP TO BE THE QUEEN OF THE STRIPPERS GOD WILL PROTECT US MADAME ROSE USED TO SAY BUT TO BE SURE CARRY A HEAVY CLUB ROSE CARRIED JUST SUCH A CUDGEL AND SHE USED IT OFTEN PRODDING HER CHILDREN ONWARD BEATING DOWN ANYONE WHO STOOD IN THEIR WAY HER LIFE WAS A MESS BUT IT BECAME THE TEMPLATE FOR A GREAT STAGE ROLE ONE THAT SERVED ETHEL MERMAN ROSALIND RUSSELL ANGELA LANSBURY AND MOST RECENTLY TYNE DALY WELL NOW BETTE MIDLER COMES TO GYPSY CBS SUNDAY 811 PM EST AND IT'S A LOGICAL EVEN INSPIRED PAIRING OF PERFORMER AND MATERIAL SASSY AND BRASSY THE DIVINE MISS M BRINGS JUST THE RIGHT BRAND OF OBNOXIOUS CHARM TO HER ROLE SHE HAS THE FLOUNCE AND THE BOUNCE THE SASHAY AND THE STRUT THE FLAMING RED HAIR THE IMPERIOUS FOREFINGER AND THE MOUTH THAT JUST WON'T QUIT AND OF COURSE SHE KNOWS HOW TO BELT OUT A TUNE MS MIDLER HAS NOT HAD MUCH SUCCESS WITH HER RECENT SCREEN ROLES FOR THE BOYS HOCUS POCUS SO IT'S A PLEASURE TO SEE HER FITTING RIGHT INTO THE STORY OF MADAME ROSE IN THE MIDST OF THE GREAT DEPRESSION A SINGLE MOTHER WITH THREE EXHUSBANDS AND TWO YOUNG GIRLS IS DREAMING OF VAUDEVILLE GLORY ON THE ORPHEUM CIRCUIT SHE LACKS MONEY TALENT AND A SPOUSE BUT SHE HAS AMBITION IN SPADES BY SHEER FORCE OF HER DOMINEERING WILL SHE DRAGS HER KIDS OFF TO AUDITIONS THRUSTS THEM ONTO THE STAGE AND INTO PAYING JOBS AS BABY JUNE AND HER NEWSBOYS SOME PEOPLE CAN BE CONTENT PLAYING BINGO AND PAYING RENT SHE SINGS NOT HER HAULING HER TROUPE ACROSS AMERICA SHE MEETS A WARMHEARTED FORMER AGENT HERBIE THE ALWAYS APPEALING PETER RIEGERT HE FLIRTS WITH HER YOU LOOK LIKE A PIONEER WOMAN WITHOUT A FRONTIER SHE FLIRTS BACK AFTER THREE HUSBANDS IT TAKES A LOT OF BUTTER TO GET YOU BACK IN THE FRYING PAN AND SOON THEY'RE ON THE ROAD AS ONE BIG PSEUDOFAMILY TAKING THEIR SHIRLEY TEMPLE ACT FROM CHEYENNE TO TOPEKA TO WALLA WALLA EVENTUALLY OF COURSE THE ACT WILL GROW STALE FOR HERBIE THE GIRLS AND THE AUDIENCES FOR EVERYONE EXCEPT ROSE AND EVEN AFTER A TRANSFUSION OF DANCING COWS AND TOREADORABLES IT'S OBVIOUS THAT THE TROUPE AND THE FAMILY IS DESTINED TO SPLIT UP THERE'S PLENTY OF HEARTACHE AHEAD FOR MADAME ROSE BUT THERE'S ALSO THE DUBIOUS PRIDE OF INTRODUCING HER UGLY DUCKLING DAUGHTER LOUISE INTO THE ROCKBOTTOM WORLD OF BURLESQUE LOUISE CYNTHIA GIBB WILL LEARN FROM THE PROS TO BE A STRIPPER ALL YOU NEED TO HAVE IS NO TALENT AS IT TURNS OUT TO HAVE NO TALENT IS NOT ENOUGH A GIMMICK HELPS TOO SINGS A STRIPPER IN ONE OF THE GREAT VERSES OF MUSICAL THEATER ONCE I WAS A SHLEPPER NOW I'M MISS MAZEPPA AND SO THE FUTURE MONARCH OF THE STRIPTEASE IS BORN GYPSY ROSE LEE HER MOTHER IS LEFT TO FUME ON THE SIDELINES I WAS BORN TOO SOON AND STARTED TOO LATE I COULD'VE BEEN BETTER THAN ANY OF YOU CBS IS CROWING ABOUT THIS PRODUCTION AS A MAJOR MUSICAL DRAMATIC EVENT AND IT HAS A CERTAIN RIGHT AS FAR AS I CAN TELL THIS IS THE FIRST EVER MADEFORTV MUSICAL COMEDY THE CAST IS STRONG RIGHT DOWN TO INCIDENTAL CHARACTERS PLAYED BY ED ASNER AND ANDREA MARTIN SO IS THE BACKSTAGE TALENT THE COSTUMES ARE BY BOB MACKIE THE DIRECTION BY EMILE ARDOLINO DIRTY DANCING SISTER ACT AS A HOLIDAY SPECIAL GYPSY IS WELLPOSITIONED A MEGAPRODUCTION STACKED UP AGAINST ALL THOSE ANIMATED RUDOLPH SPECIALS IT'S GOOD OLDFASHIONED FAMILY ENTERTAINMENT A TRIFLE SOMBER PERHAPS BUT IN THE END EVERYTHING COMES UP ROSES AND THE ENDURING SONGS WHEREVER YOU GO I HAD A DREAM ARE FUN TO HEAR AGAIN BUT LIKE ROSE HOVICK GYPSY HASN'T AGED ALL THAT WELL THE PATHOS OF THE GRASPING CENTRAL CHARACTER IS STILL POWERFUL BUT AS MUSICAL THEATER GYPSY FEELS OLD ESPECIALLY AFTER THE INTERVENING YEARS OF FOSSE AND SONDHEIM AND JUST A LITTLE LONG ON CUTESY KITSCH OF COURSE MS MIDLER IS THE QUEEN OF KITSCH THE MISTRESS OF HIGH CAMP AND IF ANYONE CAN MAKE THIS HOKEY MATERIAL PLAY IT'S HER SHE POURS HERSELF INTO THIS ROLE EVERY WINK AND NOD EVERY BUMP AND GRIND UNTIL SHE'S FAIRLY EXPLODING OFF THE SCREEN WHILE IT'S ALWAYS A TREAT TO WATCH THE DIVINE ONE THE EXUBERANCE EVENTUALLY BEGINS TO FEEL LIKE A FULL FRONTAL ASSAULT THIS GYPSY IS ARTFULLY ALMOST INTIMATELY STAGED BUT IT RAISES THE QUESTION OF WHETHER MUSICAL COMEDIES BELONG ON THE SCREEN AT ALL ESPECIALLY THE SMALL SCREEN WHAT WORKS IN THE THEATER UNDER THE WARM LIGHTS AND THE PROSCENIUM ARCH SEEMS AWKWARD AND OUT OF PLACE IN THE COLDLY FACTUAL MEDIUM OF TELEVISION I LOVE MUSICALS BUT ALL THIS BREAKING INTO SONG STUFF COMES OFF AS HOPELESSLY DATED ON THE SCREEN THE PACING IS TOO SLOW THE PLOTTING IS TOO ARTIFICIAL IN AN MTV ERA WHEN SO MUCH MONEY IS POURED INTO MAKING THREE MINUTES OF MUSIC LOOK FLASHY AND EXCITING THE SCREEN MUSICAL SEEMS SO LANGUID SO STAGEY SO OUT OF TOUCH THAT IT'S MORE INTRIGUING FOR REASONS OF CULTURAL ARCHAEOLOGY THAN ANY CURRENT VIBRANCY NO WONDER THE FORMAT IS DEADER THAN THE VARIETY SHOW AND THAT'S PRETTY DEAD 9312060045 931206 NYNEX UNIT'S RATES COULD BE REDUCED BY 297 MILLION JUDGE RECOMMENDS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN ADMINISTRATIVE LAW JUDGE RECOMMENDED A 297 MILLION REDUCTION IN PHONE CHARGES FOR NEW YORK TELEPHONE CO'S CONSUMERS BEGINNING IN JANUARY ACCORDING TO THE STATE'S ATTORNEY GENERAL A SPOKESWOMAN FOR THE STATE DEPARTMENT OF PUBLIC SERVICE ONE OF SEVERAL PARTIES WHO ASKED FOR A RATE REDUCTION FOR NEW YORK TELEPHONE SAID HER AGENCY HAD ASKED FOR A RATE REDUCTION OF 204 MILLION BECAUSE IT THOUGHT NEW YORK TELEPHONE COULD BE COMPETITIVE AND PROVIDE GOODQUALITY SERVICE WITH LOWER REVENUE THE CONSUMER PROTECTION BOARD WHICH HAD SOUGHT A REDUCTION OF 4682 MILLION OR 85 SAID IT WAS DISAPPOINTED WITH THE JUDGE'S RECOMMENDATION THE BOARD ADDED THAT THE JUDGE'S RECOMMENDATION DIDN'T REFLECT NEW YORK TELEPHONE'S PLANS TO CUT COSTS NEXT YEAR THE ASSOCIATED PRESS REPORTED NEW YORK TELEPHONE SAID THE RECOMMENDATIONS WERE A STEP BACKWARD BECAUSE THEY WERE BASED ON OLD INFLEXIBLE RATE CASE METHODS THAT ARE NO LONGER APPLICABLE GIVEN THE INTENSIFYING COMPETITION FROM NEWCOMERS THE COMPANY SAID IT THOUGHT THE STATE PUBLIC SERVICE COMMISSION WILL COME TO A VERY DIFFERENT DECISION REGARDING THE RATE REDUCTION WHEN IT MEETS LATER THIS MONTH NEW YORK TELEPHONE HAS NOT ASKED FOR A RATE INCREASE FOR 1994 THE PUBLIC SERVICE COMMISSION'S FINAL DECISION HAS IMPLICATIONS FOR OTHER STATE UTILITIES THE ATTORNEY GENERAL'S OFFICE SAID IT IS ALSO LIKELY TO BE WATCHED CLOSELY BY OTHER PHONE COMPANIES AND THEIR REGULATORS NYNEX CORP THE PARENT OF NEW YORK TELEPHONE SAID THE PUBLIC SERVICE COMMISSION OPENED THIS PROCEEDING SPECIFICALLY TO DEVELOP NEW REGULATION FOR A COMPETITIVE MARKETPLACE LIKE SOME OF ITS BABY BELL SIBLINGS NYNEX IS PRESSING REGULATORS TO ADOPT MOREFLEXIBLE REGULATIONS THAT WILL ENABLE IT TO BETTER COMPETE WITH A HOST OF NEW COMPETITORS INVADING ITS TURF INCLUDING FIBEROPTIC PROVIDERS IN THE FUTURE RIVAL BELLS AND CABLE COMPANIES ALSO ARE EXPECTED TO VIE FOR THE NEW YORK REGION'S LUCRATIVE TELEPHONE BUSINESS BUT EVEN AS THE COMPANY ATTEMPTS TO MEET THE COMPETITION BY CUTTING COSTS IT HAS BEEN TAKEN TO TASK BY STATE REGULATORS FOR PROVIDING SHODDY CUSTOMER AND REPAIR SERVICES IN SEPTEMBER THE STATE ATTORNEY GENERAL ASKED REGULATORS TO FORCE NYNEX TO IMPROVE ITS CUSTOMER SERVICE ARGUING THAT NEW YORK TELEPHONE HAS THE WORST SERVICE QUALITY OF THE STATE'S 40 LOCAL TELEPHONE COMPANIES IN A STATEMENT NEW YORK TELEPHONE DECRIED THE JUDGE'S RECOMMENDATION FOR A RATE REDUCTION BECAUSE IT TURNS A BLIND EYE TO THE TREMENDOUS CHANGES TAKING PLACE IN THIS STATE'S TELECOMMUNICATIONS INDUSTRY AND PRETENDS THAT WE FACE NO GREATER RISK THAN A DECADE AGO BUT THE ATTORNEY GENERAL'S OFFICE WELCOMED THE JUDGE'S RECOMMENDATION BECAUSE IT WOULD PROTECT CONSUMERS FROM PAYING FOR NEW YORK TELEPHONE'S CHARITABLE DONATIONS AS WELL AS FOR LEGAL EXPENSES THAT BELONG TO OTHER NYNEX COMPANIES IN JULY THE ATTORNEY GENERAL'S OFFICE CHARGED THAT NEW YORK TELEPHONE PROPOSED TO HAVE TELEPHONE CUSTOMERS PAY FOR THE NEARLY 2 MILLION IT CONTRIBUTES TO TELEPHONE PIONEERS OF AMERICA AN ORGANIZATION OF RETIRED TELEPHONECOMPANY EMPLOYEES A COMPANY SPOKESMAN DENIED THAT NEW YORK TELEPHONE HAD PASSED NONPHONE COSTS TO CUSTOMERS SAYING IT HAD MADE LEGITIMATE BUSINESS EXPENSES 9312060043 931206 CREDIT MARKETS BOND MARKET'S SWINGS ARE LIKELY TO SHRINK BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK THIS HAS BEEN A GREAT YEAR FOR THE BOND MARKET BUT NOW THAT THE ECONOMY IS HEATING UP ARE THE GOOD TIMES GONE IF YOU'RE LOOKING FOR 20 RETURNS ON 30YEAR TREASURY BONDS THE ANSWER IS YES MONEY MANAGERS SAY BUT THEY AREN'T PREDICTING INSTANT ARMAGEDDON FOR THE BOND MARKET THEY EXPECT BOND YIELDS TO ZIGZAG IN A NARROWER RANGE THAN IN THE RECENT PAST AT LEAST UNTIL THE ECONOMY HEATS UP ENOUGH TO IGNITE INFLATION FOR INVESTORS WHO CAN MAKE DO WITH A BOND'S INCOME ALONE NOT CAPITAL GAINS THE MANAGERS SAY THE PROMISING PLACES TO LOOK INCLUDE HIGHQUALITY CORPORATE BONDS PLAINVANILLA MORTGAGEBACKED SECURITIES TAXEXEMPT MUNICIPAL BONDS AND FIVE TO 10YEAR TREASURYS ONE POSITIVE OMEN FOR THE BOND MARKET CAME FRIDAY BOND YIELDS DROPPED DESPITE THE USUALLY BONDPUNISHING NEWS THAT THE UNEMPLOYMENT RATE HAD DROPPED IN THIS CASE TO 64 THE LOWEST SINCE JANUARY 1991 THE BENCHMARK 30YEAR TREASURY BOND YIELD FELL TO 623 FROM 628 THURSDAY WORRIES ABOUT THE REVIVING ECONOMY IN RECENT WEEKS PUSHED DOWN THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ABOUT SEVEN POINTS OR ABOUT 70 FOR A BOND WITH 1000 FACE VALUE BUT THE SELLING EASED IN THE PAST WEEK AS INVESTORS BECAME MORE CONVINCED THAT A STRONGER ECONOMY DOESN'T NECESSARILY MEAN HIGHER INFLATION THE BANE OF THE FIXEDINCOME MARKET FRIDAY'S JOBS REPORT SHOWS THAT THE ECONOMY IS GROWING ABOVE TREND WHICH COULD LEAD TO INFLATIONARY PRESSURES SAYS DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO BUT THE FEDERAL RESERVE WILL RAISE SHORTTERM INTEREST RATES IF NECESSARY IN ORDER TO PREVENT ANY MEANINGFUL ACCELERATION OF INFLATION HE SAYS THIS YEAR INVESTORS COULD PRACTICALLY CLOSE THEIR EYES PICK A BOND AND MAKE MONEY INVESTORS IN GENERAL TREASURY FUNDS CHALKED UP AN AVERAGE CUMULATIVE RETURN OF 149 FOR THE FIRST 10 MONTHS OF THIS YEAR ACCORDING TO LIPPER ANALYTICAL SERVICES IT'S GOING TO BE MUCH HARDER TO GET THESE TYPES OF CAPITAL GAINS UNLESS THE ECONOMY GOES BACK INTO RECESSION SO THE ROOM TO MOVE DOWNWARD IN RATES IS PROBABLY PRETTY LIMITED SAYS STEVE WOOD DIRECTOR OF FINANCIAL MARKETS RESEARCH AT BA SECURITIES A UNIT OF BANKAMERICA CORP FRIDAY'S EMPLOYMENT REPORT WHICH SHOWED THE HIGHEST AMOUNT OF FACTORY OVERTIME SINCE THE GOVERNMENT BEGAN COLLECTING THE DATA IN 1956 TELLS YOU THE ECONOMY IS PERFORMING BETTER THAN BEFORE SAYS MR WOOD THIS MEANS TODAY'S HIGHER INTEREST RATES ARE LIKELY TO BE MAINTAINED NEXT YEAR AND THEY MAY EVEN GO A BIT HIGHER HE ADDS BUT WHILE THE ECONOMY SEEMS HEALTHIER IT ISN'T YET EXPERIENCING THE KIND OF GROWTH THAT FUELS INFLATION INFLATION IS UNLIKELY TO ACCELERATE IN ANY MEANINGFUL SENSE IT WILL PROBABLY STAY IN A 3 TO 3 1/2 RANGE SAYS MR JOHNSON OF FIRST CHICAGO THE RESULT IN HIS VIEW WILL BE A LESSVOLATILE BOND MARKET IN WHICH RATES MOVE LESS IN THE NEXT YEAR THAN THEY HAVE IN THE PAST THAT OPINION IS SHARED BY WILLIAM GROSS HEAD OF FIXEDINCOME INVESTMENTS AT PACIFIC INVESTMENT MANAGEMENT CO WHICH MANAGES MORE THAN 40 BILLION FOR THE PAST THREE YEARS IT'S BEEN LIKE A ROLLER COASTER IN WHICH INVESTORS HAVE HAD A GREAT TIME RIDING THE VOLATILE MARKET FOR THE PRICE APPRECIATION HE SAYS NOW WE'RE SHIFTING TO A MERRYGOROUND IN WHICH INVESTORS RIDE A MUCH MORE PLACID RIDE BASICALLY THINGS WON'T CHANGE THAT MUCH IN THAT ENVIRONMENT INVESTORS HAVE TO HAVE AN UTTERLY DIFFERENT STRATEGY THAN WHAT THEY'VE HAD OVER THE PRECEDING YEARS MR GROSS SAYS INVESTORS NEED TO BE MUCH MORE SELECTIVE ABOUT THE BONDS THEY BUY LONGTERM BONDS FOR MANY PROBABLY AREN'T THE WAY TO GO WITH THE CURRENT LOW YIELDS SMALLER SWINGS CAN RESULT IN BIGGER LOSSES IF BOND YIELDS WERE TO RISE ONE PERCENTAGE POINT TO 7 FOR EXAMPLE INVESTORS WOULD TAKE AN 18 LOSS IN PRINCIPAL BUT IN THE DAYS OF HIGHER YIELDS A ONEPERCENTAGEPOINT JUMP TO 11 WOULD BRING A 10 LOSS IN PRINCIPAL IF YOUR FUND IS LEADING THE GOVERNMENTFUND SECTOR THIS YEAR YOU'VE GOT A LONG FUND SAYS JOHN RECKENTHALER EDITOR OF THE MORNINGSTAR MUTUAL FUNDS NEWSLETTER IT DOESN'T MEAN YOUR FUND MANAGER IS A GENIUS IT MEANS YOU'VE GOT INTERESTRATE SENSITIVITY BE AWARE THAT IF YOU ARE IN A LONG FUND IT MIGHT BE TIME TO SHIFT INTO SOMETHING SHORT FOR THIS REASON MANY FUND MANAGERS ARE STARTING TO UNLOAD THEIR LONGTERM TREASURY BONDS IN FAVOR OF SHORTERTERM SECURITIES ESPECIALLY THOSE MATURING IN FIVE TO 10 YEARS KEITH BRODKIN CHAIRMAN OF MASSACHUSETTS FINANCIAL SERVICES AGREES IF YOU INVEST IN SHORT TO INTERMEDIATETERM BOND FUNDS OVER A THREE TO FIVEYEAR PERIOD IT'S AWFULLY HARD TO GET HURT HE SAYS SOME SECTORS THAT HAVE UNDERPERFORMED THIS YEAR MIGHT BE WORTH A SECOND LOOK IN THE COMING YEAR EXPERTS SAY THIS DOESN'T NECESSARILY MEAN RUSHING OUT AND BUYING A LOT OF JUNK BONDS SAYS MR GROSS OF PIMCO IT MEANS LOOKING INTO SECTORS OF THE BOND MARKET THAT HAVE BEEN NEGLECTED AND DAMAGED GOVERNMENT FUNDS THAT OWN MORTGAGEBACKED SECURITIES FOR EXAMPLE MAY BE A GOOD IDEA AS INTEREST RATES FELL THIS YEAR AND HOMEOWNERS REFINANCED RISING PREPAYMENTS INFLICTED A SEVERE BEATING ON THESE SECURITIES AS HOMEOWNERS PAID OFF THEIR LOANS EARLY HOLDERS OF MORTGAGE SECURITIES UNEXPECTEDLY GOT THEIR MONEY BACK AND HAD LITTLE CHOICE BUT TO REINVEST IT AT LOWER RATES BUT WITH INTEREST RATES CHANGING LITTLE INVESTORS IN PLAINVANILLA MORTGAGEBACKED SECURITIES COULD EARN AS MUCH AS 125 PERCENTAGE POINTS MORE IN ANNUAL YIELD THAN IN TREASURY SECURITIES WITH THE SAME MATURITIES PIMCO'S MR GROSS SAYS MUNICIPAL BONDS ARE HIGH ON THE BUY LIST FOR MANY MONEY MANAGERS WHO STILL CALL THEM A BARGAIN AN INVESTOR WHO IS CONCERNED ABOUT INTEREST RATES GOING UP SHOULD THINK ABOUT TAXEXEMPT BONDS SAYS FRAZIER EVANS SENIOR ECONOMIST AT COLONIAL INVESTMENT SERVICES MOREOVER THIS YEAR'S FLOOD OF MUNICIPALSECURITIES ISSUES HAS PUSHED MUNI YIELDS HIGHER RELATIVE TO TREASURYS ON AN AFTERTAX BASIS ANOTHER ALTERNATIVE IS CORPORATE BONDS WITH LITTLE OR NO CALL PROTECTION MR GROSS SAYS THIS WOULD BE A COMPLETE REVERSAL RELATIVE TO PAST STRATEGY HE SAYS DURING THE BOND MARKET'S RALLY SUCH SECURITIES WERE SHUNNED BY INVESTORS WHO WANTED TO AVOID HAVING THEIR BONDS CALLED AWAY AS RATES DROPPED BUT WITH INTEREST RATES APPEARING TO STABILIZE THE SECURITIES ARE LESS LIKELY TO BE CALLED AND THEIR YIELDS TEND TO BE HIGHER THAN THOSE POSSESSING CALL PROTECTION FOR INVESTORS THE EUROPEAN BOND MARKETS MIGHT ALSO BE WORTH A LOOK IF YOU CAN STOMACH THE CONSIDERABLE RISK OF SHIFTING CURRENCY RATES MR GROSS SAYS FOREIGN MARKETS ARE STILL REFLECTING POOR ECONOMIC SCENARIOS AND A POTENTIAL FOR SHARPLY LOWER RATES HE SAYS FALLING RATES MEAN RISING PRICES AND A SHOT AT SIGNIFICANT CAPITAL GAINS BUT DON'T WAIT TOO LONG TO CONSIDER WHICH WAY TO GO IN THE BOND MARKET THE PROBLEM IS THAT MOST INVESTORS WILL NOT CHANGE UNTIL THEY SUFFER PAIN SAYS JAY GOLDINGER CHIEF INVESTMENT OFFICER AT CAPITAL INSIGHT INC IN BEVERLY HILLS CALIF VERY FEW INVESTORS WILL ANTICIPATE A LOSS AND GET OUT BEFOREHAND THE BOND MARKET SHRUGGED OFF NEWS OF STRONGERTHANEXPECTED JOB GROWTH AND POSTED STRONG GAINS THE PRICE OF THE 30YEAR TREASURY BOND ROSE MORE THAN 5/8 POINT OR MORE THAN 625 FOR A BOND WITH 1000 FACE VALUE TO 100 5/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 623 FROM 628 PRICES OF TREASURYS MATURING IN THREE TO 10 YEARS ALSO POSTED MODEST GAINS WHILE THOSE MATURING IN LESS THAN THREE YEARS WERE LITTLE CHANGED TO SLIGHTLY LOWER TRADING WAS DOMINATED BY THE LABOR DEPARTMENT'S REPORT THAT NONFARM PAYROLL EMPLOYMENT ROSE BY 208000 JOBS IN NOVEMBER ABOVE FORECASTS CENTERING ON AN INCREASE OF 168000 THE INITIAL RESPONSE WAS VIOLENT SWINGS IN PRICES WITHIN THE FIRST 15 MINUTES THE PRICE OF THE 30YEAR BOND BOUNCED BACK AND FORTH IN A RANGE OF ABOUT TWOTHIRDS OF A POINT BEFORE RISING BY DAY'S END ANALYSTS SAID THE EMPLOYMENT REPORT WAS GOOD NEWS FOR THE ECONOMY AND SHOULD HAVE BEEN BEARISH FOR THE BOND MARKET THE NUMBER WAS RELATIVELY STRONG BUT IT LOOKED LIKE THE PEOPLE WHO HAD TO SELL HAD ALREADY SOLD SAID JERRY ZUKOWSKI ECONOMIST AT PAINEWEBBER INC TRADERS WHO TOOK POSITIONS AHEAD OF THE EMPLOYMENT REPORT APPEARED TO HAVE SET MOSTLY SHORTS MEANING THEY HAD SOLD BORROWED SECURITIES IN HOPES OF PRICES FALLING ON THE NEWS SO THAT THEY COULD BUY THE SECURITIES BACK AT CHEAPER LEVELS AND POCKET THE DIFFERENCE WHEN TRADERS MOVED TO COVER THESE SHORTS THE BUYING HELPED PUSH PRICES HIGHER LATER IN THE DAY HELPING TO LIFT THE MARKET WAS A SENSE THAT THIS WEEK'S ECONOMIC NEWS MAY BE ON THE BULLISH SIDE FOR TREASURYS DEALERS SAID ON THURSDAY AND FRIDAY THE GOVERNMENT IS TO RELEASE REPORTS ON PRODUCER AND CONSUMER PRICES RESPECTIVELY WHICH ARE EXPECTED TO SHOW THAT WHILE THE ECONOMY HAS PICKED UP STEAM IT HASN'T YET GENERATED SIGNIFICANT INFLATIONARY PRESSURES THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9312060042 931206 HOOGOVENS PRICES PART 2 OF STOCK OFFER AT 2070 A SHARE SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM HOOGOVENS & STAALFABRIEKEN NV SAID IT IS PRICING THE SECOND PART OF A TWOSTAGE PUBLIC OFFERING OF NEW STOCK AT 40 GUILDERS 2070 A SHARE ANALYSTS SAID THE PRICE WAS ON THE HIGH END OF EXPECTATIONS THE STOCK IS BEING OFFERED TO PRIVATE INVESTORS UNTIL DEC 7 WITH CURRENT HOOGOVENS SHAREHOLDERS GIVEN PREFERENCE IN THE EVENT OF OVERSUBSCRIPTION THE FIRST STAGE OF THE OFFER WAS RESTRICTED TO INSTITUTIONAL INVESTORS AND TO THE DUTCH GOVERNMENT WHICH HOLDS A 123 STAKE IN THE COMPANY THE INITIAL STAGE OF THE OFFER CLOSED THURSDAY AND WAS OVERSUBSCRIBED HOOGOVENS SAID IT DECLINED TO ELABORATE AT 40 GUILDERS A SHARE THE NEW STOCK ON OFFER FROM THE COMPANY IS PRICED AT A DISCOUNT TO THE STOCK'S CURRENT MARKET VALUE OF 4310 GUILDERS ON THE AMSTERDAM EXCHANGE THE NEW HOOGOVENS STOCK BEING SOLD UNDER THE OFFER IS IN THE FORM OF DUTCH DEPOSITARY RECEIPTS KNOWN HERE AS CERTIFICATES LIKE MANY OTHER DUTCH COMPANIES HOOGOVENS PLACES THE BULK OF ITS ACTUAL SHARES AND THE ACCOMPANYING VOTING RIGHTS WITH A TRUST THAT IS FRIENDLY TO COMPANY MANAGEMENT THE TRUST IN TURN ISSUES THE DEPOSITARY RECEIPTS OR CERTIFICATES WHICH HAVE FULL DIVIDEND AND ECONOMIC RIGHTS TO THE UNDERLYING STOCK EACH CERTIFICATE HAS A NOMINAL VALUE OF 20 GUILDERS WHICH IS ONE 50TH OF THE 1000GUILDER FACE VALUE OF THE UNDERLYING STOCK HELD IN TRUST THE HOOGOVENS CERTIFICATES AREN'T CONVERTIBLE INTO THE UNDERLYING STOCK A TOTAL OF 83 MILLION CERTIFICATES ARE ON OFFER IN THE TWOTRANCHE SHARE ISSUE THAT NUMBER COULD BE INCREASED BY ABOUT 750000 CERTIFICATES TO MEET EXTRA DEMAND AT THE 40 GUILDER ISSUE PRICE THAT WOULD REPRESENT PROCEEDS OF AT LEAST 330 MILLION GUILDERS 1553 MILLION IF THE ISSUE IS FULLY SUBSCRIBED 9312060041 931206 ENVIROTEST SYSTEMS IN COLORADO TUCSON ARIZ ENVIROTEST SYSTEMS CORP SAID COLORADO SELECTED IT TO BE THE STATE'S AUTOEMISSIONS TESTING SERVICE COVERING DENVER AND THE CITY'S SURROUNDING COUNTIES INCLUDING BOULDER ENVIROTEST SAID THE CONTRACT WOULD RESULT IN ANNUAL REVENUE OF ABOUT 20 MILLION AND BE VALUED AT 140 MILLION OVER THE SEVEN YEARS OF THE AGREEMENT THE COLORADO ACCOUNT IS THE THIRD CONTRACT ENVIROTEST HAS WON IN THE PAST TWO MONTHS HAVING RECENTLY PICKED UP SIMILAR ASSIGNMENTS FOR PENNSYLVANIA AND DOWNSTATE NEW YORK 9312060040 931206 TRIGEN COMPLETES PURCHASE WHITE PLAINS NY TRIGEN ENERGY CORP SAID IT COMPLETED THE ACQUISITION OF MORE THAN 90 OF UNITED THERMAL CORP FOR 450 A SHARE OR A TOTAL OF ABOUT 65 MILLION TRIGEN A DEVELOPER OF HEATING AND COOLING SYSTEMS SAID IT ACQUIRED 835 OF ITS UNITED THERMAL STOCK FROM CATALYST ENERGY CORP A CLOSELY HELD NEW YORK ENERGY CONCERN AND ANOTHER 65 STAKE FROM OTHER UNITED THERMAL SHAREHOLDERS 9312060039 931206 WHO'S NEWS WAINOCO OIL CORP WAINOCO OIL CORP HOUSTON GERALD B FAUDEL WAS NAMED TO THE NEW POST OF VICE PRESIDENT SAFETY AND ENVIRONMENTAL AFFAIRS AT THIS OIL AND GAS COMPANY HE WAS DIRECTOR OF SAFETY AT WAINOCO'S FRONTIER REFINING INC UNIT 9312060038 931206 WHO'S NEWS NATIONAL CONVENIENCE STORES INC NATIONAL CONVENIENCE STORES INC HOUSTON BRIAN FONTANA 36 YEARS OLD FORMER VICE PRESIDENTTREASURER OF THIS CONVENIENCESTORE CONCERN WAS NAMED VICE PRESIDENTCHIEF FINANCIAL OFFICER FILLING A VACANCY 9312060037 931206 INTERNATIONAL KOREA'S KIM SHOWS OPENNESS ON RICE ISSUE BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE TIGHTLY SEALED RICE MARKET HERE MAY BE ABOUT TO CRACK SLIGHTLY AND WITH IT SOME SUPPORT FOR SOUTH KOREA'S POPULAR PRESIDENT KIM YOUNG SAM PRIME MINISTER HWANG IN SUNG SAID OVER THE WEEKEND THAT SEOUL'S EFFORTS TO EXCLUDE ITS RICE MARKET FROM ANY LIBERALIZED GLOBALTRADING FRAMEWORK WAS MEANINGLESS HE WAS SPEAKING FROM GENEVA WHERE NEGOTIATORS WERE TRYING TO HAMMER OUT A COMPROMISE IN THE URUGUAY ROUND OF WORLDTRADE TALKS PAST SOUTH KOREAN GOVERNMENTS HAVE VOWED TO PREVENT FOREIGN RICE FROM ENTERING THE COUNTRY LIKE THE JAPANESE SOUTH KOREANS REGARD IMPORTED RICE AS A THREAT TO THEIR ANCIENT AGRARIAN CULTURE THE NATION'S FARMING COMMUNITY WHICH HAS DWINDLED TO 131 OF THE TOTAL POPULATION FROM 447 IN THE PAST DECADE REMAINS POLITICALLY POWERFUL IN PRESIDENTIAL ELECTIONS LAST YEAR ALL THREE LEADING CANDIDATES SAID THEY WOULD RESIST INTERNATIONAL PRESSURE FOR SOUTH KOREA TO OPEN ITS MARKET TO IMPORTED RICE WHICH IS MUCH CHEAPER THAN LOCALLY HARVESTED GRAIN THAT INCLUDED MR KIM SOUTH KOREA'S FIRST CIVILIAN PRESIDENT IN 30 YEARS WHO IS NOW FACING A REAL CHALLENGE TO HIS POPULARITY SINCE HE TOOK OFFICE IN FEBRUARY MR KIM HAS LED A HIGHPROFILE CAMPAIGN TO REFORM THE COUNTRY'S CORRUPT POLITICAL ESTABLISHMENT AND HAS REAPED APPROVAL RATINGS OF ABOVE 70 BUT REVERSING HIS STANCE ON THE RICE ISSUE IS SIPHONING OFF SOME OF THAT GOODWILL WHICH COULD HINDER HIS REFORM DRIVE ALTHOUGH THE KIM ADMINISTRATION HAS SKILLFULLY DELIVERED A SERIES OF BOLD ECONOMIC REFORMS IT FACES A FORMIDABLE ARRAY OF IMPORT BARRIERS THAT MUST BE REMOVED IF SOUTH KOREA IS TO REALIZE ITS AMBITION TO BE A MEMBER OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT DIPLOMATS AND SCHOLARS SAY PRESIDENT KIM WAS CAUGHT OFF GUARD BY THE SPEED WITH WHICH THE URUGUAY ROUND UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE GAINED MOMENTUM IN GENEVA AS LATE AS LAST MONTH THE PRESIDENT REMAINED FAITHFUL TO HIS CAMPAIGN PLEDGE TO KEEP THE COUNTRY'S RICE MARKET CLOSED THE PROSPECT OF CONCESSIONS ON RICE IMPORTS BY JAPAN MADE SOUTH KOREA'S POSITION UNREALISTIC DIPLOMATS SAY AND EVEN SOUTH KOREA'S FARMERS HAVE RESIGNED THEMSELVES TO LIBERALIZATION IT WASN'T UNTIL PRESIDENT KIM RETURNED FROM THE ASIAPACIFIC ECONOMIC COOPERATION SUMMIT LAST MONTH IN SEATTLE THAT HE BEGAN EMPHASIZING THE IMPORTANCE OF INTERNATIONALIZING THE COUNTRY'S ECONOMY WHICH ANALYSTS PERCEIVED AS AN ATTEMPT TO PREPARE SOUTH KOREA FOR THE INEVITABLE 9312060036 931206 LAW JUDGE ABSOLVES DOW CHEMICAL CORNING OF LIABILITY IN BREASTIMPLANT CASES BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE ABSOLVED DOW CHEMICAL CO AND CORNING INC OF LIABILITY IN FEDERAL BREASTIMPLANT LITIGATION BROUGHT AGAINST DOW CORNING CORP A JOINT VENTURE OF THE TWO COMPANIES US DISTRICT JUDGE SAM C POINTER JR IN BIRMINGHAM ALA WHO IS SUPERVISING ALL FEDERAL IMPLANT CASES SAID THERE ISN'T EVIDENCE THAT THE TWO PARENT COMPANIES PARTICIPATED IN DECISIONS INVOLVING MANUFACTURE OF SILICONE BREAST IMPLANTS HE HELD OPEN THE POSSIBILITY HE COULD LATER CHANGE HIS MIND IF PLAINTIFF ATTORNEYS TURN UP EVIDENCE OF SUCH INVOLVEMENT THROUGH FACTFINDING PROCEEDINGS THE IMMEDIATE EFFECT OF THE INTERLOCUTORY OR INTERMEDIATE RULING IS TO TENTATIVELY DROP DOW CHEMICAL AND CORNING FROM SOME 3000 EXISTING FEDERAL CASES OVER SILICONE BREAST IMPLANTS AN ADDITIONAL 4000 STATECOURT LAWSUITS NAMING DOW CHEMICAL AND 3000 NAMING CORNING AREN'T AFFECTED THOUGH JUDGE POINTER'S REASONING MIGHT BE PERSUASIVE IN THOSE ACTIONS AS WELL DOW CORNING BASED IN MIDLAND MICH HAS MANUFACTURED SILICONE PRODUCTS FOR DECADES AND FOR YEARS WAS THE LEADING MANUFACTURER OF BREAST IMPLANTS CONTAINING SILICONE GEL IT ALSO WAS THE CHIEF SUPPLIER TO OTHER MANUFACTURERS OF THE GEL ITSELF WHICH THOUSANDS OF WOMEN ALLEGE CAUSES AUTOIMMUNE ILLNESSES AND SEVERE DEFORMITIES THE FOOD AND DRUG ADMINISTRATION HAS SHARPLY LIMITED THE SALE OF THE DEVICES AND DOW CORNING HAS DROPPED OUT OF THE BREASTIMPLANT BUSINESS JUDGE POINTER'S RULING IF IT STANDS AND ESPECIALLY IF ENDORSED BY STATE COURTS COULD HAVE A GREAT IMPACT ON THE FUTURE COURSE OF THE SILICONEIMPLANT LITIGATION DOW CORNING IS A FORTUNE 500 COMPANY WITH 1992 SALES OF 2 BILLION BUT IT DOESN'T HAVE THE DEEP POCKETS OF THE TWO PARENTS COMBINED DOW CHEMICAL HAD NEARLY 19 BILLION IN 1992 SALES AND CORNING HAD 37 BILLION THERE ARE AN ESTIMATED 12000 EXISTING BREASTIMPLANT CASES AND THOUSANDS OF OTHERS COULD BE FILED AS OTHER WOMEN GET SICK SO THE JUDGE'S RULING BY POSSIBLY TAKING THE PARENT COMPANIES OUT OF THE PICTURE COULD CONCEIVABLY LEAD TO A TIME WHEN TOTAL LIABILITY OUTSTRIPS DOW CORNING'S ABILITY TO PAY THE CASES ARE NOWHERE NEAR THAT POINT NOW MOREOVER THE RULING COULD SERVE AS A WEAPON IN DOW CORNING'S ARSENAL OF ARGUMENTS AS IT SEEKS TO PICK UP LESS OF THE TAB IN A PROPOSED 475 BILLION GLOBAL BREASTIMPLANT SETTLEMENT DOW CORNING HAS BEEN NEGOTIATING WITH OTHER DEFENDANTS BAXTER INTERNATIONAL INC AND BRISTOLMYERS SQUIBB CO OVER WHICH MANUFACTURER WILL PAY WHAT PORTION OF TOTAL LIABILITY IN THAT GLOBAL SETTLEMENT IF THE SETTLEMENT ULTIMATELY GETS APPROVED BY JUDGE POINTER IF DOW CORNING CAN ARGUE THAT ITS POCKETS AREN'T SO DEEP THAT COULD CONCEIVABLY HELP IT PICK UP A SMALLER PART OF THE TAB THIS DECISION COULD ENABLE THEM TO SAY THIS IS ALL WE'RE GOING TO PUT UP' SAID HOUSTON PLAINTIFF LAWYER HARRY DURANT RALPH I KNOWLES JR AN ATLANTA LAWYER WHO IS COCHAIRMAN OF THE PLAINTIFF LAWYERS COMMITTEE SUPERVISING THE CONSOLIDATED FEDERAL CASES IN BIRMINGHAM PROMISED THE ISSUE OF THE PARENT COMPANIES' LIABILITY WILL BE REVISITED AFTER MORE DISCOVERY FACTFINDING TAKES PLACE JUDGE POINTER'S RULING SPECIFICALLY NOTED THAT THERE MIGHT BE REASON TO VACATE THESE SUMMARY JUDGMENTS BECAUSE OF THE DISCOVERY OF ADDITIONAL INFORMATION OR INDEED BECAUSE OF A CHANGE OF LAW IN ONE OR MORE JURISDICTIONS IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE CORNING INC SHARES JUMPED 1625 TO 28 WHILE DOW CHEMICAL SHARES ROSE 625 CENTS TO 58625 9312060035 931206 MEDICINE DRUG FIRMS SHARE RISKS WITH CARE GIVERS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MERCK & CO CHAIRMAN P ROY VAGELOS CASUALLY DROPPED A BOMBSHELL LAST MONTH AT THE MEDCO CONTAINMENT SERVICES INC SHAREHOLDERS MEETING THE PHARMACEUTICAL GIANT IS OFFERING TO SELL ITS PROSTATE DRUG PROSCAR TO HEALTH PLANS WITH A MONEYBACK GUARANTEE THE SIMPLE WARRANTY WIDELY ATTACHED TO CONSUMER PRODUCTS UNTIL RECENTLY WOULD HAVE APPEARED DESPERATE AND UNSEEMLY IN THE PHARMACEUTICAL INDUSTRY TODAY IT'S CONSIDERED CUTTINGEDGE MARKETING MERCK'S GUARANTEE IS ONE OF MANY TYPES OF RISKSHARING AGREEMENTS DRUG MANUFACTURERS ARE NEGOTIATING WITH BIG MANAGEDCARE AND HOSPITAL BUYERS THE RISK INVOLVES DRUGCOMPANY PROMISES THAT COULD COST THEM BIG BUCKS BUT REFUSING TO CUT SUCH DEALS COULD COST THEM EVEN MORE IN RISK SHARING AT ITS SIMPLEST THE DRUG COMPANY OFFERS A WARRANTY TO GET PEOPLE TO TRY THEIR DRUGS THE MOST EXTREME FORM OF RISK SHARING CALLED CAPITATION HAS FAR MORE POWERFUL COMPETITIVE IMPLICATIONS RATHER THAN GET PAID BY THE PILL A PHARMACEUTICAL COMPANY AGREES TO SUPPLY A HEALTHMAINTENANCE ORGANIZATION WITH A DRUG FOR A PER CAPITA OR LUMP SUM OVER A CERTAIN PERIOD OF TIME REGARDLESS OF HOW MUCH IT USES THE COMPANY RUNS THE RISK THAT THE HMO WILL USE MORE THAN ANTICIPATED EATING INTO PROFITS BUT IN RETURN THE DRUG COMPANY IS GUARANTEED THE HMO'S BUSINESS AND COMPETITORS ARE LEFT OUT IN THE COLD CLEARLY IF CAPITATION CATCHES ON IT WILL PAY TO BE THE FIRST DRUG COMPANY TO STRIKE SUCH DEALS SPARKED IN PART BY THE FEAR THAT MERCK WILL USE MEDCO TO MOVE INTO CAPITATION IN A BIG WAY OTHER DRUG COMPANIES HAVE BEEN FURIOUSLY TRYING TO FIGURE OUT HOW BEST TO PLAY THE RISKSHARING GAME PFIZER INC RECENTLY TOLD ANALYSTS IT IS PURSUING RISKSHARING AGREEMENTS SCHEIN PHARMACEUTICAL INC A GENERICDRUG COMPANY SAYS IT IS DEVELOPING CAPITATED PROGRAMS SMITHKLINE BEECHAM PLC AND BRISTOLMYERS SQUIBB CO ARE ALSO SAID TO BE EXPLORING CAPITATION BUT THE COMPANIES DECLINED TO COMMENT WE'RE WORKING AROUND THE CLOCK TRYING TO FIGURE OUT HOW WE CAN BEST GIVE THE CUSTOMERS SOMETHING THEY WANT WHICH IS PREDICTABILITY OF COST SAYS RICHARD J MARKHAM PRESIDENT OF MARION MERRELL DOW INC WHICH IS MULLING SEVERAL RISKSHARING OPTIONS DRUGCOMPANY INTEREST IN RISKSHARING AGREEMENTS IS VERY RECENT IN FEBRUARY GROUP HEALTH COOPERATIVE OF PUGET SOUND HELD A CEO SUMMIT OF DRUGCOMPANY EXECUTIVES TO TALK ABOUT CREATIVE WAYS TO CONTROL COSTS BUT THE SUBJECT OF CAPITATION DREW MINIMAL INTEREST SAYS PHILLIP M NUDELMAN PRESIDENT OF GROUP HEALTH NOW THERE IS RESOUNDING INTEREST AND SEVERAL MAJOR DRUGCOMPANY CHIEF EXECUTIVE OFFICERS FLY TO HIS SEATTLE OFFICE EACH MONTH TO TALK ABOUT SUCH PARTNERSHIPS HE SAYS SOME OBSERVERS THINK ANTICIPATION OF RISKSHARING IS DRIVING THE RECENT FLURRY OF MERGERS AND ACQUISITIONS IN THE DRUG INDUSTRY THE MERGER BETWEEN MERCK AND MEDCO THE SNAPPING UP OF GENERIC DRUG COMPANIES AND MARKETING ALLIANCES BETWEEN DRUG COMPANIES ARE ALL MOVES TO GET THE INFORMATION AND PRODUCTS NECESSARY TO MAKE SUCH DEALS WORK SAYS THOMAS E GARDNER PRESIDENT OF DUN & BRADSTREET HEALTHCARE INFORMATION DEVISING A RISKSHARING AGREEMENT ESPECIALLY IF IT INVOLVES CAPITATION IS FRAUGHT WITH PROBLEMS DRUG COMPANIES WANT SOME INFLUENCE OVER DRUG USAGE TO LIMIT THEIR FINANCIAL EXPOSURE BUT HOSPITALS DOCTORS AND HEALTH PLANS DON'T READILY GIVE UP CONTROL OF DRUG USAGE TO A DRUG COMPANYUNLESS THE COMPANY LIKE MERCK OWNS A BUSINESS LIKE MEDCO WHICH HEALTH PLANS HIRE TO INFLUENCE DRUG USAGE AND COST EARLIER THIS YEAR MEDCO GAVE A GLIMPSE OF ITS RISKSHARING PLANS WHEN IT CREATED A PROGRAM PROMISING HEALTHPLAN CUSTOMERS THAT IT CAN REDUCE TOTAL HOSPITAL MEDICAL AND DRUG COSTS FOR DIABETES PATIENTS BY A TARGET AMOUNT OVER TWO TO THREE YEARS IT PROMISES TO REIMBURSE THE HMO FOR ANY COSTS OVER THE TARGET THE PROMISE COULD COST MEDCO UP TO TENS OF MILLIONS OF DOLLARS SAYS WAYNE T GATTINELLA MEDCO EXECUTIVE VICE PRESIDENT OF MARKETING BUT IF IT WORKS THE HEALTH PLAN'S DIABETES COST DECLINES EVEN THOUGH ITS DRUG USAGE AND MEDCO'S REVENUES INCREASES FIVE HEALTH PLANS HAVE SIGNED ONTO THE PROGRAM WHICH WILL BEGIN IN JANUARY MEDCO SENDS DIABETES PATIENTS WHO ORDER INSULIN THROUGH ITS MAILORDER OPERATION OR OTHER RETAIL PHARMACIES QUARTERLY BROCHURES AND NEWSLETTERS PROVIDING SELFHELP NUTRITION AND LIFESTYLE TIPS IT ALSO PROVIDES A TOLLFREE NUMBER STAFFED BY NURSES AND PHARMACISTS TO ANSWER QUESTIONS STARTING NEXT MONTH MEDCO WILL CONTACT PATIENTS IF THEIR SELFREPORTED HEALTH SURVEYS INDICATE THEIR CONDITION IS WORSENING IT WILL ALSO DIRECTLY REMIND PATIENTS TO REFILL THEIR PRESCRIPTIONS THE PROGRAM IS VOLUNTARY AND SO FAR 65000 PATIENTS HAVE ENROLLED MEDCO IS ANTICIPATING 120000 BY THE END OF THE FIRST QUARTER NEXT YEAR MR GATTINELLA SAYS IN SUCH PROGRAMS TOTAL COSTS MAY DECLINE BUT DRUG USE MAY INCREASE MR GATTINELLA SAYS THAT'S AN OBVIOUS BENEFIT FOR THE DRUG COMPANY INVOLVED IN THIS CASE ELI LILLY & CO WHICH SELLS INSULIN JUST GETTING PEOPLE TO REFILL THEIR PRESCRIPTIONS AND TAKE THEIR MEDICATION ON SCHEDULE COULD BE A BOON SURVEYS SHOW THAT ABOUT HALF OF DIABETES PATIENTS FAIL TO FILL AND FOLLOW THEIR PRESCRIPTIONS MEDCO PLANS SIMILAR PROGRAMS FOR HIGH BLOOD PRESSURE HIGH CHOLESTEROL AND ENLARGED PROSTATES ALL LIKELY TO USE MERCK DRUGS MR GATTINELLA SAYS A PROGRAM FOR DEPRESSION IS ALSO PLANNED ELI LILLY IS HELPING TO PAY FOR THE DIABETES PROGRAM'S PATIENT COMMUNICATIONS SUCH AS THE NEWSLETTERS BUT ISN'T FINANCIALLY AT RISK MEDCO ANTICIPATES FUTURE PROGRAMS WILL INVOLVE THE DRUG COMPANY SHARING SOME OF THE FINANCIAL RISK MR GATTINELLA SAYS BESIDES BENEFITING FROM COST PREDICTABILITY BIG DRUG BUYERS LIKE THE CHANGES THEY SEE IN DRUGCOMPANY MARKETING BEHAVIOR AFTER RISK SHARING IS PUT INTO PLACE RATHER THAN PUSHING DOCTORS TO PRESCRIBE MORE AND MORE DRUGS THEY SAY DRUG COMPANY SALESPEOPLE ARE WORKING TOWARD APPROPRIATE USAGE COLUMBIA HEALTHCARE CORP ADMINISTRATORS FOR EXAMPLE SAY THEY HAVE SEEN A BIG DIFFERENCE IN HOFFMANNLA ROCHE INC'S SALESPEOPLE AFTER IT STRUCK A RISKSHARING DEAL FOR ROCHE'S INJECTABLE ANTIBIOTIC ROCEPHIN THE DRUG IS SUPPOSED TO BE GIVEN ONCE A DAY BUT MANY PHYSICIANS IN THE BIG HOSPITAL NETWORK OUT OF HABIT PRESCRIBE TWO OR MORE DAILY DOSES MAKING THE DRUG FAR MORE EXPENSIVE THAN OTHER ANTIBIOTICS UNDER ITS RISKSHARING AGREEMENT ROCHE IS RESPONSIBLE FOR GETTING PHYSICIANS TO USE THE DRUG PROPERLY OR IT WILL REFUND THE EXCESS ALTHOUGH IT'S TOO EARLY FOR ANY HARD MEASURE COLUMBIA OFFICIALS SAY ROCHE'S SALESPEOPLE ARE WORKING CLOSELY WITH HOSPITAL PHARMACISTS TO GET PHYSICIANS TO USE THE DRUG CORRECTLY EVEN THOUGH IT MEANS FEWER UNIT SALES SPECIAL BROCHURES AND VIDEOTAPES HAVE BEEN CREATED AND INFECTIOUSDISEASE EXPERTS ARE AVAILABLE TO CONDUCT SEMINARS ON THE APPROPRIATE USE OF ROCEPHIN VOLUNTARY HOSPITALS OF AMERICA A BIG HOSPITAL BUYING GROUP STRUCK A SIMILAR DEAL FOR ROCEPHIN RECENTLY BUT SOME HMOS AREN'T JUMPING ON THE CAPITATION BANDWAGON THE INDUSTRY IS ALWAYS LOOKING FOR INNOVATIVE WAYS TO DO BUSINESS SO YOU DON'T FOCUS ON THE UNIT PRICE SAYS DALE KRAMER DIRECTOR OF MATERIEL SERVICES OF KAISER PERMANENTE MEDICAL CARE PROGRAM IN NORTHERN CALIFORNIA THE GIANT HMO ISN'T OPPOSED TO LOOKING AT CAPITATION PROPOSALS BUT HE SAYS WE HAVEN'T FIGURED OUT A WAY THAT MAKES SENSE FOR US DRUG COMPANIES ARE NEGOTIATING DEALS WITH MANAGEDCARE CUSTOMERS AND HOSPITALS THAT PUT THEM AT FINANCIAL RISK INCLUDING MONEYBACK GUARANTEES AND COST CAPS 9312060034 931206 WORLD MARKETS FOREIGN CASH FLOODS INTO TAIWAN BOURSE LURED BY UNDERVALUED STOCKS AND EASING OF CONTROLS BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN THE FLOOD OF FOREIGN CAPITAL THAT HAS SENT ASIAN STOCK MARKETS SOARING THIS YEAR FINALLY IS LAPPING AT TAIWAN'S SHORES IN THE PAST MONTH FOREIGN INSTITUTIONAL INVESTORS HAVE BEEN ATTRACTED TO TAIWAN'S STOCK MARKET BY TWO FACTORS THE TAIWAN GOVERNMENT IS MOVING TO LOOSEN CONTROLS ON THE FLOW OF FOREIGN CAPITAL INTO AND OUT OF THE STOCK MARKET AND SHARES PARTICULARLY BLUE CHIPS LOOK UNDERVALUED RELATIVE TO OTHER ASIAN STOCKS WILLIAM MCGRATH TAIWAN COUNTRY MANAGER AT SG WARBURG SECURITIES TAIWAN LTD SAID INVESTORS ARE SAYING I'VE JUST GOT TO GET SOME TAIWAN WEIGHTING' THEY'RE AFRAID THEY'RE GOING TO MISS TAIWAN'S RIDE INDEED VOLUME FRIDAY HIT AN EIGHTMONTH HIGH WARBURG AND BARING SECURITIES LATE LAST MONTH SOLD ABOUT 135 MILLION IN NEW SHARES OF THE LONDONLISTED FORMOSA FUND EARLIER THIS YEAR THAT MIGHT HAVE BEEN A HARD SELL BUT DEMAND WAS OVERWHELMING WARBURG WITH 70 MILLION OF SHARES GOT ORDERS FOR ABOUT 200 MILLION AND BARING SAID IT GOT AN EVEN LARGER RESPONSE THE STORY IS THE SAME AT TAIWAN'S SECURITIES AND EXCHANGE COMMISSION WHICH PROCESSES INSTITUTIONAL INVESTORS' APPLICATIONS TO INVEST IN TAIWANESE SHARES ONLY GOVERNMENTAPPROVED INSTITUTIONS MAY INVEST DIRECTLY IN TAIWAN'S STOCK MARKET SINCE THE BEGINNING OF NOVEMBER WHEN REGULATORS ANNOUNCED THEY WOULD RELAX SEVERAL RULES GOVERNING FOREIGN INVESTMENT 20 INSTITUTIONS HAVE APPLIED TO INVEST A TOTAL OF 146 BILLION THAT SUM REPRESENTS ONEFOURTH OF THE 577 BILLION THAT FOREIGNERS HAVE APPLIED TO BRING INTO TAIWAN SINCE THE MARKET WAS OPENED TO FOREIGN INVESTMENT IN EARLY 1991 THE SEC SAID TOTAL APPROVED FOREIGN INVESTMENT STANDS AT 273 BILLION OF WHICH 2 BILLION HAS BEEN REMITTED TO TAIWAN FOR INVESTMENT WITH 323 MILLION OF IT COMING IN LAST THE MONTH ALONE THE TAIWAN BOURSE SAID THAT LAST MONTH FOREIGN INVESTMENT IN SHARES HIT A RECORD HIGH WITH NET BUYING OF 2963 MILLION THE GOVERNMENT'S EFFORTS TO RELAX REGULATIONS PROMISE TO ATTRACT EVEN MORE MONEY LAST MONTH THE GOVERNMENT DOUBLED THE CEILINGS FOR INDIVIDUAL INSTITUTIONS' INVESTMENTS TO 200 MILLION AND FOR ALL FOREIGN INVESTMENT TO 5 BILLION THE JUMP IN APPLICATIONS LAST MONTH REFLECTED THE RESPONSE BY SEVERAL INSTITUTIONS SEEKING TO INCREASE THEIR EXPOSURE TO THE NEW LIMITS AND SOME FUND MANAGERS ARE EAGER TO PUSH FOR EVEN MORE ALSO ATTRACTING MONEY IS THE PROSPECT THAT ONEROUS CONTROLS ON REPATRIATION OF PROFITS WILL BE REMOVED SOON TAIWAN AUTHORITIES ARE MOVING TO AMEND LAWS TO ELIMINATE RESTRICTIONS ON THE FLOW OF FOREIGNERS' CAPITAL OUT OF THE COUNTRY THOSE CHANGES COULD BE IN PLACE BY MID1994 MAKING TAIWAN ACCESSIBLE TO MANY US INSTITUTIONS AT WHICH FUND MANAGERS WERE UNWILLING TO INVEST UNDER PREVIOUS RULES THE ULTIMATE ATTRACTION IS TAIWANESE STOCKS FOR YEARS TAIWAN WAS CONSIDERED AMONG THE MOST OVERVALUED STOCK MARKETS IN ASIA EVEN AS IT SLUMBERED THROUGH A PROLONGED BEAR MARKET BUT THE RAPID RISE OF SHARE PRICES IN HONG KONG MALAYSIA SINGAPORE AND THAILAND THIS YEAR HAS CHANGED THAT SUDDENLY TAIWAN'S SHARES LOOK INEXPENSIVE AND OTHER MARKETS OVERPRICED SOME RECENT VALUE HAS DISAPPEARED AS THE TAIWAN MARKET HAS TAKEN OFF IN THE WAKE OF AN UNEXPECTED VICTORY IN LOCAL ELECTIONS BY THE COUNTRY'S RULING KUOMINTANG THE MARKET'S INDEX ROSE ABOUT 10 LAST WEEK AND IS UP 36 FOR THIS YEAR IN TOKYO MONDAY THE NIKKEI PLUNGED 61717 POINTS OR 35 TO CLOSE THE MORNING SESSION AT 1684218 AS MARKET HOPES EVAPORATED THAT THE GOVERNMENT WOULD TAKE STRONG STEPS TO STIMULATE THE ECONOMY ON FRIDAY TOKYO STOCKS ENDED FLAT TO SLIGHTLY LOWER THOUGH A BUYING BOUT BY INSTITUTIONS RESCUED THEM FROM INTRADAY LOWS LONDON SHARES ROSE MODERATELY AFTER LATE BUYING ERASED EARLY LOSSES FRANKFURT PRICES GAINED LIFTING THE MAIN INDEX TO A SECOND CONSECUTIVE RECORD FINISH IN TECHNICALLY DRIVEN TRADING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10949 UP 047 REFLECTING INCREASES IN MARKETS IN ALL REGIONS SAVINGS AND LOAN STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9841 UP 187 OR 194 WITH GREAT WESTERN FINANCIAL OF THE US POSTING A 278 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 10227 DOWN 226 OR 216 WITH ARABIAN OIL OF JAPAN SLIDING 449 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 33344 POINTS THURSDAY INCHED UP 060 POINT TO 1745935 REBOUNDING FROM A 16 LOSS ON PROFITTAKING EARLY IN THE SESSION BUT RETREATING ISSUES SWAMPED ADVANCING ISSUES 729283 ON THE FIRST SECTION WHERE FRIDAY'S VOLUME WAS ESTIMATED AT 270 MILLION SHARES DOWN SHARPLY FROM 4466 MILLION SHARES A DAY EARLIER THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 2125 POINTS THURSDAY LOST 501 TO 146011 AFTER A 1993 LOW LAST MONDAY CRUSHED THE NIKKEI 21 IN THE PAST MONTH SHARE PRICES FROM TUESDAY THROUGH FRIDAY GAINED 91 ON CONFIDENCE THAT THE JAPANESE GOVERNMENT THIS WEEK WILL TAKE STEPS INCLUDING AN INCOME TAX CUT TO STIMULATE THE RECESSIONARY ECONOMY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 103 POINTS TO 32342 REBOUNDING FROM A SESSION LOW OF 32122 THE FT 30STOCK INDEX ADDED 31 POINTS TO 24486 VOLUME RETURNED TO A MORE NORMAL 7491 MILLION SHARES COMPARED WITH 105 BILLION SHARES A DAY EARLIER THE SELLING PARTLY ON PROFITTAKING BEGAN ON WORRIES THAT LONG BONDS IN THE US WOULD FALL SIGNALING HIGHER INTEREST RATES BUT LONDON BUYING PICKED UP AFTER THE US MARKETS OPENED AND THOSE FEARS WEREN'T REALIZED AND HOPES FOR LOWER BRITISH LENDING RATES WERE REVIVED AFTER FRANCE'S CENTRAL BANK CUT ITS MONEY MARKET RATES IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1008 POINTS TO A NEW HIGH OF 212061 FOR A 7337POINT GAIN FOR LAST WEEK FUNDS WERE STARTING TO MAKE YEAREND PICKS PRIOR TO THE QUIET CHRISTMAS HOLIDAYS THE GERMAN CENTRAL BANK'S DECISION LAST WEEK TO LOWER ONLY A MINOR INTEREST RATE WAS INTERPRETED AS A SIGN THAT BENCHMARK RATES WON'T BE CUT AGAIN THIS YEAR IN PARIS DESPITE THE FRENCH RATE CUT PRICES SAGGED UNTIL LATE IN THE DAY WHEN A TURNAROUND LEFT STOCKS UP 13 ON BUYING BY US INVESTORS AND A REPORT THAT FRANCE WAS OPTIMISTIC ABOUT CONCLUDING A WORLD TRADE LIBERALIZATION ACCORD IN MADRID STOCKS WERE BOOSTED BY A CUT IN SPAIN'S BENCHMARK INTEREST RATE AND ADVANCES IN THE FUTURES MARKET IN ZURICH PRICES SURGED 11 LED BY DRUG AND FOOD ISSUES IN BRUSSELS SHARES RALLIED 11 TO A RECORD ON STRONG VOLUME FROM HEDGING IN DERIVATIVE PRODUCTS IN MEXICO CITY STOCKS CLIMBED 23 TO A SECOND STRAIGHT RECORD EXTENDING THE RALLY FROM THE NEW CANADIAN GOVERNMENT'S APPROVAL OF THE NORTH AMERICAN TRADE ACCORD THAT ALSO INVOLVES THE US IN HONG KONG SHARES ROSE DEFYING CONCERNS ABOUT FALTERING SINOBRITISH TALKS ON POLITICAL REFORMS IN THE BRITISH COLONY BEFORE IT REVERTS TO CHINA IN 1997 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 9312060033 931206 LETTERS TO THE EDITOR THE CRISIS OF ILLEGAL IMMIGRATION YOUR OCT 27 CAPITAL JOURNAL COLUMN INDICATES YOU DON'T BELIEVE ILLEGAL IMMIGRATION IS A PROBLEM AND YOU DON'T BELIEVE THE US SHOULD DO ANYTHING TO DEAL WITH IT WHEN YOU SAY THE GOAL SHOULD BE TO BETTER CONTROL THE FLOW OF ILLEGAL ALIENS DO YOU MEAN WE SHOULD PROVIDE TRANSPORTATION SET UP SPECIAL BORDER CHECKPOINTS JUST FOR ILLEGALS OR MAYBE GIVE OUT 2000 GREEN CARDS EVERY DAY ON A FIRSTCOME FIRSTSERVED BASIS WHILE ILLEGAL IMMIGRATION HITS CALIFORNIA HARDEST ITS COSTS ARE NOT LIMITED TO THE GOLDEN STATE DONALD HUDDLE OF RICE UNIVERSITY ESTIMATES THAT IN 1992 AFTER SUBTRACTING TAXES PAID BY ILLEGAL IMMIGRANTS GOVERNMENT SERVICES PROVIDED TO ILLEGALS COST THE TAXPAYERS 119 BILLION UNLESS WE DO SOMETHING SOON DR HUDDLE ESTIMATES THE NET COST OF ILLEGAL IMMIGRATION OVER THE NEXT DECADE WILL TOTAL AN INCREDIBLE 1864 BILLION FOR THESE REASONS I HAVE INTRODUCED A PACKAGE OF LEGISLATION DESIGNED TO DEAL WITH THIS GROWING CRISIS FROM A NUMBER OF APPROACHES MY BILLS WOULD STRENGTHEN THE BORDER PATROL AND WOULD MAKE IT MUCH HARDER FOR ILLEGALS TO OBTAIN WELFARE AND OTHER BENEFITS AS WELL AS JOBS THE TWIN CARROTS DRAWING THEM HERE AND YES THEY WOULD ALSO REFORM OUR CITIZENSHIP LAWS A PROPOSAL SINCE ENDORSED BY GOV PETE WILSON I HAVE NOT BEEN ADVOCATING THESE POSITIONS FOR OVER THREE YEARS BECAUSE I'M SEARCHING FOR NEW ENEMIES NOR AM I DEMONIZING ALIENS TO SCORE CHEAP POLITICAL POINTS IN FACT I REPRESENT A DISTRICT THAT IS SOME 30 LATINO AND THAT BRINGS UP A CRUCIAL POINT THAT TOO MANY PEOPLE IGNORE THE DISTINCTION BETWEEN LEGAL AND ILLEGAL IMMIGRANTS WE ARE A NATION OF IMMIGRANTS AND I SUPPORT LEGAL IMMIGRATION IN FACT WE HAVE THE WORLD'S MOST GENEROUS LEGAL IMMIGRATION POLICY ADMITTING MORE LEGAL IMMIGRANTS EACH YEAR THAN ALL OF THE OTHER NATIONS OF THE WORLD COMBINED BUT IN ORDER TO PRESERVE THE NATIONAL CONSENSUS ON LEGAL IMMIGRATION THE US MUST QUICKLY ACT TO SOLVE THE GROWING CRISIS CAUSED BY VIRTUALLY UNCHECKED ILLEGAL IMMIGRATION THAT'S WHAT I'M FIGHTING TO ACCOMPLISH 9312060032 931206 MARKETING & MEDIA SONY PRESIDENT BRUSHES OFF CRITICISM OF STRATEGY FOR A MULTIMEDIA FUTURE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO DEFENDING SONY CORP'S STRENGTHS IN ITS TRADITIONAL AUDIO AND VIDEO LINES SONY PRESIDENT NORIO OHGA REMAINS A SKEPTIC WHEN IT COMES TO THE MULTIMEDIA FUTURE WHAT IS MULTIMEDIA HE ASKS IN NEWSPAPERS AND MAGAZINES THE WORD APPEARS EVERYWHERE BUT THERE'S NO CONCERTED IDEA AS TO WHAT IT IS MR OHGA BRUSHES ASIDE CRITICISM THAT SONY HAS BEEN SLOW TO DEVELOP A STRATEGY FOR MULTIMEDIA PRODUCTS COMMONLY CONSIDERED THOSE PLAYING SOFTWARE THAT COMBINES TEXT VIDEO IMAGES GRAPHICS AND SOUND BUT HE SAYS THAT WHILE THE MULTIMEDIA MARKET TAKES SHAPE HE'S CONVINCED THAT THE JAPANESE COMPANY'S CORE BUSINESS REMAINS STRONG MR OHGA'S COMMENTS WERE MADE IN HIS FIRST INTERVIEW SINCE SONY'S FOUNDER AND CHAIRMAN AKIO MORITA SUFFERED A CEREBRAL HEMORRHAGE LAST WEEK MR OHGA WHO TOOK OVER SONY'S OPERATIONAL HELM MORE THAN FOUR YEARS AGO SAID MR MORITA'S ILLNESS CAME AS A SHOCK AND THERE IS NO CLEAR INDICATION WHEN HE MAY BE ABLE TO RETURN TO WORK MANY ANALYSTS HAD EXPECTED SONY WHICH IS NOT ONLY ONE OF THE WORLD'S BESTKNOWN CONSUMER ELECTRONICS HARDWARE COMPANIES BUT ALSO OWNER OF COLUMBIA PICTURES AND CBS RECORDS TO DOMINATE THE MULTIMEDIA MARKET INSTEAD SEVERAL OF SONY'S MULTIMEDIA PRODUCTS SUCH AS THE DATA DISCMAN AND THE SOCALLED BOOKMAN WHICH DISPLAY INFORMATION STORED ON COMPACT DISKS HAVE YET TO FIND BROAD ACCEPTANCE IN THE MARKETPLACE MEANWHILE SONY HAS BEEN SLOW TO FIGURE OUT HOW TO INTEGRATE THE ACTIVITIES OF ITS ENTERTAINMENT COMPANIES AND HARDWARE DIVISIONS ALL THIS COMES AT A TIME WHEN SONY'S SALES AND PROFITS ARE BEING HAMMERED BY THE APPRECIATION OF THE YEN AND STAGNATION IN THE COMPANY'S CORE PRODUCT LINES SUCH AS TELEVISIONS VIDEOCASSETTE RECORDERS AND CAMCORDERS A STRONG YEN MAKES JAPANESE PRODUCTS MORE EXPENSIVE OVERSEAS AND REDUCES THE VALUE OF OVERSEAS SALES WHEN TRANSLATED INTO YEN MR OHGA HOWEVER INSISTS THAT SONY'S PROBLEMS ARE ARTIFICIAL CONSEQUENCES OF THE YEN'S STRENGTH CONCERNING THE COMPANY'S TRADITIONAL AUDIOVISUAL PRODUCTS HE SAID IT'S TRUE THAT OUR SALES ARE DOWN BUT ON A LOCALCURRENCY BASIS OUR SALES ARE EXPANDING MR OHGA CONTINUED IN VOLUME SALES WE HAVE GROWTH THE SONY PRESIDENT HOWEVER ISN'T EXACTLY CLEAR WHEN IT COMES TO WHAT HE PLANS FOR SONY IN THE FUTURE WHEN ASKED FOR HIS GOALS OVER THE NEXT FIVE TO 10 YEARS HE RESPONDED WITH A LENGTHY LECTURE ABOUT THE VIRTUES OF THE MINIDISC A NEW DIGITAL AUDIO PRODUCT THAT PLAYS 25INCH RECORDABLE COMPACT DISKS THE MINIDISC HOWEVER IS OFF TO A SLOW START SINCE SONY INTRODUCED THE PRODUCT JUST OVER A YEAR AGO ITS FACTORIES HAVE AVERAGED ONLY ABOUT 80 PRODUCTION CAPACITY WITH THIS INNOVATIVE NEW FORMAT WE ARE TRYING TO ESTABLISH A NEW MARKET MR OHGA SAID AS FAR AS MULTIMEDIA IS CONCERNED MR OHGA IS CONVINCED THE MARKET WILL BE MORE COMPLEX THAN IS COMMONLY ASSUMED USERS ARE SO DIVERSE THAT THINKING A SINGLE MULTIMEDIA DEVICE WILL BE ABLE TO SATISFY ALL THEIR DIVERSE NEEDS IS I THINK INCORRECT HE SAID EVEN WITH TODAY'S PACE OF TECHNOLOGICAL CHANGE MR OHGA THINKS THAT PACKAGED MEDIA SUCH AS VIDEOTAPES AND COMPACT DISKS BOTH SONY STRENGTHS WILL CONTINUE TO BE VERY POPULAR NEVERTHELESS MR OHGA SAID HE THINKS ELECTRONIC DISTRIBUTION OF ENTERTAINMENT AND OTHER SOFTWARE WILL GROW IN POPULARITY OVER THE YEARS IN THAT VEIN HE OFFERED OBLIQUE SUPPORT TO THE PLANS OF SONY CORP OF AMERICA PRESIDENT MICHAEL SCHULHOF WHO HAS EXPRESSED AN INTEREST IN BRINGING IN A TELEPHONE COMPANY OR CABLE OPERATOR AS A PARTNER IN SONY'S MOVIE AND MUSIC OPERATIONS THERE ARE SO MANY SUITORS MR OHGA SAID WE ARE WATCHING ALL THE BOYS COME BY IN ORDER TO SEE WHICH ONE IS THE MOST HANDSOME 9312060031 931206 BID FOR TURNER BROADCASTING SYSTEM REVEALED IN PARAMOUNT BATTLE PAPERS BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FIVE MONTHS BEFORE AGREEING TO BE ACQUIRED BY VIACOM INC PARAMOUNT COMMUNICATIONS INC NEGOTIATED WITH TELECOMMUNICATIONS INC AND LIBERTY MEDIA INC TO JOIN FORCES IN AN ATTEMPT TO ACQUIRE ALMOST HALF OF TURNER BROADCASTING SYSTEM INC THE ABORTED TALKS WERE DISCLOSED IN INTERNAL PARAMOUNT DOCUMENTS AND OTHER CONFIDENTIAL MATERIALS FILED IN THE COURT BATTLE PITTING PARAMOUNT AND VIACOM AGAINST QVC NETWORK INC WHICH IS MOUNTING A RIVAL 103 BILLION BID FOR PARAMOUNT THE DOCUMENTS WERE FILED IN DELAWARE SUPREME COURT WHERE PARAMOUNT AND VIACOM ARE SEEKING TO OVERTURN A LOWER COURT RULING IN QVC'S FAVOR THE DOCUMENTS SHOW THAT IN THE MONTHS BEFORE THE PARAMOUNT TAKEOVER BATTLE ALL THE COMPANIES INVOLVED WERE JOCKEYING FOR POSITION IN THE ENTERTAINMENT INDUSTRY AND DISCUSSING DEALS WITH EACH OTHER AND OTHER PARTIES VIACOM FOR EXAMPLE DISCUSSED A PURCHASE OF CASTLE ROCK ENTERTAINMENT INC LATER ACQUIRED BY TURNER AFTER NEGOTIATIONS WITH PARAMOUNT BROKE DOWN DOCUMENTS SHOW THEY SHOW THAT THE TALKS BETWEEN PARAMOUNT TCI AND LIBERTY FELL APART BUT THEY ALSO PROVIDE THE FIRST DETAILS OF HOW JOHN MALONE PRESIDENT OF TCI AND CHAIRMAN OF LIBERTY TRIED TO STRIKE A DEAL WITH PARAMOUNT BEFORE BACKING QVC IN ITS HOSTILE OFFER FOR PARAMOUNT THOUGH THEY HAVE AGREED TO SELL THEIR QVC STAKE TCI AND LIBERTY CONTROL 22 OF QVC PARAMOUNT WAS PREPARED EARLIER THIS YEAR TO FORM A MAJOR ALLIANCE WITH MR MALONE AND TCI THE DOCUMENTS SHOW THAT IS IRONIC NOW THAT PARAMOUNT'S CHOSEN PARTNER VIACOM IS SUING TCI CLAIMING THAT MR MALONE IS TRYING TO MONOPOLIZE THE CABLE TELEVISION INDUSTRY A DELAWARE CHANCERY COURT RULED NOV 24 THAT PARAMOUNT MUST DROP DEFENSES THAT PREVENTED QVC FROM PURSUING ITS OFFER PARAMOUNT HAS APPEALED AND QVC ON SATURDAY ASKED THE DELAWARE SUPREME COURT TO SUSTAIN ITS LOWERCOURT VICTORY IN THE TAKEOVER BATTLE THE DELAWARE SUPREME COURT IS SCHEDULED TO HEAR THE CASE ON THURSDAY QVC AND VIACOM HAVE BEEN VYING FOR CONTROL OF PARAMOUNT FOR ALMOST THREE MONTHS QVC HAS OFFERED CASH AND STOCK VALUED AT 8616 A SHARE WHILE VIACOM IS OFFERING CASH AND STOCK VALUED AT 7886 A SHARE OR 98 BILLION IN DEPOSITIONS AND OTHER COURT PAPERS FILED BY BOTH SIDES IT WAS REVEALED THAT MR MALONE INITIALLY WASN'T INCLINED TO BACK QVC AND TOLD PARAMOUNT CHAIRMAN MARTIN DAVIS THAT QVC CHAIRMAN BARRY DILLER WAS CONSIDERING A HOSTILE BID IT WAS WIDELY KNOWN THAT BEFORE AGREEING TO MERGE WITH VIACOM PARAMOUNT HAD EXPLORED MANY OTHER POTENTIAL DEALS INCLUDING A MERGER WITH TURNER THOUGH DETAILS NEVER CAME TO LIGHT TCI WITH A 23 STAKE IS ONE OF TURNER'S LARGEST SHAREHOLDERS AND MR MALONE SAID IN A DEPOSITION THAT HE ATTEMPTED TO ACT AS A MARRIAGE BROKER ACCORDING TO AN APRIL 29 LETTER TO MR MALONE MR DAVIS PROPOSED THAT PARAMOUNT WOULD BUY OUT TIME WARNER INC'S 20 TURNER STAKE AND CONTRIBUTE IT TO LIBERTY MEDIA PARAMOUNT IN TURN WOULD HAVE RECEIVED LIBERTY SHARES GIVING IT A 43 VOTING STAKE LIBERTY IN TURN WAS TO END UP WITH A 17 STAKE IN PARAMOUNT THE PLAN ALSO CALLED FOR TCI TO PUT ITS 23 TURNER STAKE INTO LIBERTY AND ALSO HAVE A 43 STAKE IN LIBERTY BUT THE PLAN WAS TABLED BECAUSE OF REGULATORY UNCERTAINTIES ACCORDING TO MR MALONE'S DEPOSITION AFTER PARAMOUNT AGREED TO THE VIACOM ACQUISITION MR MALONE AGREED TO BACK QVC'S BID FOR PARAMOUNT HE WAS FORCED BY REGULATORS TO WITHDRAW FROM THAT DEAL A TURNER SPOKESWOMAN DECLINED TO COMMENT THE DOCUMENTS ALSO INDICATE THAT THERE WAS AT LEAST SOME CONCERN AMONG PARAMOUNT INSIDERS THAT THE MERGER AGREEMENT BETWEEN PARAMOUNT AND VIACOM CONTAINED UNFAIR PROVISIONS DONALD ORESMAN AN EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND DIRECTOR COMPLAINED IN INTERNAL NOTES THAT VIACOM'S EARLIER TENDER OFFER OF 80 A SHARE FOR PARAMOUNT INCLUDED ONEROUS CONDITIONS MR ORESMAN WHO ALSO IS PARAMOUNT'S LARGEST MANAGEMENT SHAREHOLDER WITH 36 MILLION SHARES RECOMMENDED THAT PARAMOUNT KEEP ITS POISON PILL ANTITAKEOVER DEFENSE TO PROTECT AGAINST VIACOM'S COERCIVE OFFER 9312060030 931206 POLITICS & POLICY CLINTON'S UNUSUAL BUDGETREVIEW PLANS ATTEMPT TO DEAL WITH INVESTMENT GOALS SPENDING CAPS BY MICHAEL K FRISBY AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE TITLE OF THE FOURPARAGRAPH MEMO THE WHITE HOUSE SENT TO THE CABINET WEDNESDAY WAS ROUTINE BUREAUCRATESE FISCAL 1995 BUDGET DECISION PROCESS THE MESSAGE HOWEVER WASN'T IN CONTRAST TO HIS RECENT PREDECESSORS MR CLINTON PLANS SEPARATE BUDGETREVIEW SESSIONS WITH THE HEAD OF EACH MAJOR AGENCY FIRST THE MEMO SAID WHITE HOUSE BUDGET OFFICIALS WILL OUTLINE THEIR RECOMMENDATIONS AND THEN AGENCY HEADS GET TO TELL THE PRESIDENT WHERE THE RECOMMENDATIONS ARE OFF COURSE BUT COLLEGIALITY IT SEEMS GOES JUST SO FAR AFTER HEARING ALL OF THE COMPLAINTS MR CLINTON WILL DECIDE WHAT WILL GO INTO THE BUDGET THOSE DECISIONS WILL BE FINAL AND WILL BE SHARED WITH YOU SHORTLY BEFORE THE CHRISTMAS HOLIDAY BUDGET DIRECTOR LEON PANETTA AND ECONOMIC ADVISER ROBERT RUBIN WROTE AS IF TO SUGGEST THAT THEY HAVEN'T MUCH CONFIDENCE IN MR CLINTON'S ABILITY TO SAY NO TO A PASSIONATE PLEA FOR MORE MONEY OR IN THE CABINET'S FEALTY TO SPENDING RESTRAINT THEY ADDED IN THE INTEREST OF FAIRNESS AMONG CABINET SECRETARIES AND TO THE PRESIDENT YOU SHOULD NOT SEEK ADDITIONAL DISCUSSION WITH THE PRESIDENT ON THESE MATTERS IN PARTICULAR IT WOULD BE INCONSISTENT WITH THIS PROCESS TO RERAISE ISSUES WITH THE PRESIDENT AFTER FINAL DECISIONS ARE MADE THE MEMO IS AN OBVIOUS ATTEMPT TO IMPOSE SOME DISCIPLINE ON MR CLINTON'S UNDISCIPLINED DECISIONMAKING STYLE WHICH IS CRUCIAL IF MR CLINTON IS TO GET HIS BUDGET TO CONGRESS BY THE FEB 7 TARGET THE DECISIONS TO BE MADE IN THE NEXT THR EE WEEKS WHICH OF MR CLINTON'S CHERISHED INVESTMENTS TO PUSH AND WHICH TO ABANDON LARGELY DETERMINE WHAT THE PRESIDENT'S AGENDA WILL BE NEXT YEAR ALTHOUGH THE WHITE HOUSE CLEARLY HOPES TO CONCENTRATE ON HEALTH CARE THE INTENSIVE SPENDINGCUT FEVER OF THE PAST COUPLE OF MONTHS ISN'T LIKELY TO DISAPPEAR IN THE BUDGET MEETINGS THAT BEGAN LAST WEEK AT THE WHITE HOUSE MOST OF THE FACES ARE THE SAME AS THOSE AROUND THE TABLE WHEN MR CLINTON FASHIONED HIS ECONOMIC PLAN IN JANUARY AND FEBRUARY INCLUDING TREASURY SECRETARY LLOYD BENTSEN VICE PRESIDENT AL GORE WHITE HOUSE ECONOMIST LAURA TYSON AND WHITE HOUSE AIDES GENE SPERLING AND GEORGE STEPHANOPOULOS ALTHOUGH MR PANETTA HAS A LARGE ROLE HE IS NO RICHARD DARMAN WHO VIRTUALLY CONTROLLED BUDGET POLICY IN THE BUSH YEARS THE ONE NEW FACE IS THAT OF PRESIDENTIAL ADVISER DAVID GERGEN WHO IS EMERGING AS ONE OF THE ADMINISTRATION'S DEFICIT HAWKS IN THE MIDST OF HIS CRUSADE TO CUT SPENDING REP TIMOTHY PENNY TELEPHONED MR GERGEN TO SEE IF THE WHITE HOUSE WAS UP FOR A ROUND OF LET'S MAKE A DEAL THE MINNESOTA DEMOCRAT SAYS HE WANTED TO FORESTALL A MAJOR ASSAULT FROM THE WHITE HOUSE ON HIS BILL TO REDUCE SPENDING BY 90 BILLION OVER THE NEXT FIVE YEARS MR GERGEN WAS INTERESTED IN A POSSIBLE COMPROMISE BUT MR PENNY SAYS THAT MR GERGEN ACKNOWLEDGED THAT THE SENTIMENT IN THE WHITE HOUSE WAS STRONG AGAINST IT IN THE END THE WHITE HOUSE DECIDED TO STEAMROLL REP PENNY'S PROPOSAL AND DID BUT REP PENNY SAYS HE IS PLEASED THAT A KINDRED SPIRIT LIKE MR GERGEN IS AT THE PRESIDENT'S TABLE THIS TIME AROUND AT THE ROOT OF MR CLINTON'S BUDGET DILEMMA ARE THE TIGHT CAPS ON SPENDING THAT HE ACCEPTED AS PART OF LAST SUMMER'S DEFICITREDUCTION LAW I HONESTLY DON'T THINK THERE WERE MANY MEMBERS OF THE CABINET WHO REALLY UNDERSTOOD THE IMPLICATIONS OF WHAT WAS HAPPENING MR PANETTA SAYS THE ADMINISTRATION IS CLEARLY BETWEEN A ROCK AND A HARD PLACE SAYS ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE IT LAID OUT AN AMBITIOUS SET OF INVESTMENT INITIATIVES IN ITS 1994 BUDGET SO AMBITIOUS THAT THEY EXCEEDED THE BUDGET CAPS THEN IN PLACE SINCE THEN WE HAVE LOWERED THE BUDGET CAPS MAKING THE PROBLEM EVEN MORE DIFFICULT BY LAW TOTAL DISCRETIONARY SPENDING THE MONEY THAT CONGRESS APPROPRIATES ANNUALLY FOR EVERYTHING FROM BUILDING SUBMARINES TO PAYING PARK RANGERS IS ESSENTIALLY FROZEN FOR FIVE YEARS AT LAST YEAR'S LEVEL OF ABOUT 550 BILLION THE LAW DOESN'T EVEN ALLOW INCREASES TO COVER INFLATION DISCRETIONARY SPENDING ACCOUNTS FOR ONLY ABOUT A THIRD OF ALL FEDERAL OUTLAYS BUT INCLUDES NEARLY ALL OF MR CLINTON'S INVESTMENT AGENDA TO MAKE ROOM FOR INVESTMENTS IN TRAINING TECHNOLOGY EDUCATION AND THE LIKE MR CLINTON MUST COME UP WITH CUTS SOMEPLACE ELSE IT IS AS MR PANETTA SAYS A ZEROSUM GAME MANY CLINTON AIDES WOULD GLADLY CUT MORE FROM DEFENSE THAN MR CLINTON ALREADY HAS BUT STRONG OBJECTIONS FROM DEFENSE SECRETARY LES ASPIN AND SENATE ARMED SERVICES CHAIRMAN SAM NUNN D GA TOGETHER WITH UNEASINESS OVER HOTS SPOTS FROM KOREA TO BOSNIA AND THE WEAKNESS OF THE DEFENSEDEPENDENT CALIFORNIA ECONOMY MAKE THAT OPTION UNAPPEALING FOR NOW MR CLINTON IS CONCENTRATING ON SPENDING REDUCTIONS OR FEE INCREASES OUTSIDE OF DEFENSE BUT HE MUST PICK THESE CUTS CAREFULLY IF THEY ARE TOO UNPOPULAR ON CAPITOL HILL PIVOTAL APPROPRIATIONS COMMITTEES WILL IGNORE BOTH THE PROPOSED CUTS AND THE INVESTMENTS ADMINISTRATION OFFICIALS SAY ONE SOLUTION IS LIKELY TO BE TO LEAVE THE TOTAL SIZE OF THE DEFENSE BUDGET ALONE BUT TO TRY TO STUFF IT WITH THINGS THAT THE PENTAGON HASN'T TRADITIONALLY HAD TO PAY FOR SUCH AS PEACEKEEPING AND TRAINING FOR LAIDOFF DEFENSE WORKERS ALREADY ROB SHAPIRO AN ECONOMIST WITH THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL ARGUES THAT WITH CUTS IN MEDICARE AND MEDICAID FUNDING THE HEALTHCARE PLAN AND WITH DEFENSE CUTS OFF LIMITS THE ADMINISTRATION MUST TURN THE HATCHET TO GOVERNMENT SUBSIDIES MR SHAPIRO ESTIMATES THAT 250 BILLION COULD BE SAVED OVER FIVE YEARS BY SLASHING SUBSIDIES AND TAX BREAKS HE WOULD FOR INSTANCE INCREASE USER FEES TO PAY FOR AIR TRAFFIC CONTROLLERS AND HARBOR MAINTENANCE WHILE STOPPING OIL AND TIMBER TAX BREAKS RECOGNIZING THE POLITICAL HEAT THESE CUTS WOULD GENERATE MR SHAPIRO RECOMMENDS THAT A COMMISSION BE CREATED SIMILAR TO THE ONE THAT DECIDES WHICH MILITARY BASES TO CLOSE THAT COULD PICK THE SUBSIDIES TO CUT AND HAVE CONGRESS VOTE ON THEM AS A PACKAGE SUCH A PLAN MR SHAPIRO SAYS WOULD LEAVE THE PRESIDENT ENOUGH MONEY FOR SUCH PROGRAMS AS WELFARE REFORM AND WORKER RETRAINING ADMINISTRATION OFFICIALS AREN'T BACKING THE POLITICALLY SENSITIVE CUTS PROPOSED BY MR SHAPIRO BUT THEY CONCEDE THAT A LOT OF UNPOPULAR CHOICES WILL BE PUT ON THE TABLE MR SPERLING FOR INSTANCE SAYS THE CUTTING HAS REACHED THE POINT WHERE THERE WILL BE CUTBACKS ON PROGRAMS THAT PROBABLY AREN'T BAD BUT THERE JUST WON'T BE MONEY TO PAY FOR THEM INSIDE THE WHITE HOUSE MESSRS SPERLING AND STEPHANOPOULOS ARE VIEWED AS TWO STRONG ADVOCATES OF THE POSITION THAT THE PRESIDENT HAS MADE ENOUGH CUTS AND IT IS TIME TO FOCUS ON THE INVESTMENT AGENDA ONE MAJOR FRUSTRATION FOR THEM AND OTHERS IS THAT THE ACTUAL DEFICIT MAY WELL COME IN BELOW PROJECTIONS BUT SPENDING STILL WILL BE RESTRICTED BY THE CEILINGS SET IN LAW LAST SUMMER MR GERGEN MEANWHILE SUPPORTS SOME INVESTMENTS BUT SAYS THAT CUTS MUST BE FOUND TO FUND THEM I THINK THERE IS A GOOD DEAL TO THE NOTION OF CUTTING IN SOME AREAS SO THAT YOU CAN INVEST IN OTHERS MR GERGEN SAYS I LIKE THE NOTION OF CUT INVEST AND GROW IN FACT HE HAS BACKED PAYING FOR 100000 NEW POLICE AND A COMPREHENSIVE JOBRETRAINING PROGRAM MOREOVER WHITE HOUSE AIDES POINT OUT THAT IN THE END THE ADMINISTRATION IS LIKELY TO EMBRACE SOME OF THE SPECIFIC SPENDING CUTS THAT MR PENNY AND REP JOHN KASICH R OHIO PROPOSED AND NEARLY GOT THROUGH THE HOUSE OF REPRESENTATIVES THE PROBLEM WITH THE PENNYKASICH BILL THE WHITE HOUSE AIDES SAY IS THAT THE ADMINISTRATION IS COUNTING ON MANY OF THOSE MONEYSAVING PROPOSALS TO MEET THE EXISTING SPENDING CAPS HAD PENNYKASICH PASSED THE WHITE HOUSE AND THE CABINET WOULD HAVE BEEN FORCED TO COME UP WITH ADDITIONAL CUTS TO MEET THE CAPS THE TASK SAYS DEPUTY TREASURY SECRETARY ROGER ALTMAN IS VERY TOUGH BUT IT'S DOABLE IT REQUIRES US TO BE VERY TOUGHMINDED IN PRESERVING THE PRESIDENT'S INVESTMENT AND FINANCING THE INCREASES IN THOSE INVESTMENTS THROUGH REDUCTIONS ELSEWHERE BARBARA ROSEWICZ CONTRIBUTED TO THIS ARTICLE 9312060029 931206 RETAILING JEWELERS BET HONEST IMAGE PRICE CUTS AND GIMMICKS WILL MAKE SALES GLITTER BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL NEVER MIND CHRISTMAS IN THE HEART OF MONTANA SOME FOLKS ARE DREAMING OF A WHITE NEW YEAR'S EVE THAT'S BECAUSE SHARPLES JEWELRY IN CHINOOK GUARANTEES THAT IF IT SNOWS THREE INCHES OR MORE THAT DAY ITS CUSTOMERS WILL GET A FULL REFUND FOR ANYTHING THEY BUY BETWEEN NOW AND CHRISTMAS HEADING INTO THIS YEAR'S CRUCIAL CHRISTMAS SEASON AGGRESSIVE PROMOTION HAS BECOME THE NORM IN THE ONCESTAID JEWELRY BUSINESS FACED WITH INTENSE COMPETITION FROM HOME SHOPPING CHANNELS LOWMARGIN DISCOUNT RETAILERS WAREHOUSE CLUBS AND OTHERS BOTH INDEPENDENT AND CHAIN JEWELERS ARE LOOKING FOR GIMMICKS BOOSTING ADVERTISING SLASHING PRICES AND MARKETING THEMSELVES AS HONEST EXPERTS IN A WORLD WHERE THE MERCHANDISE IS OFTEN LESS THAN WHAT IT SEEMS WHETHER ALL THIS WILL PRODUCE SIGNIFICANT GAINS THIS CHRISTMAS ISN'T CLEAR AFTER SEVERAL BLEAK HOLIDAY SEASONS THAT DROVE MANY INDEPENDENT JEWELERS OUT OF BUSINESS LAST CHRISTMAS TURNED OUT TO BE STRONGER THAN EXPECTED FOR MOST JEWELERS ZALE CORP FOR EXAMPLE POSTED 11 SALES GAINS IN STORES OPEN A YEAR OR MORE WHILE TIFFANY & CO RECORDED A 14 INCREASE AND DIAMOND DEALERS SAY THEIR SALES THIS SUMMER WERE STRONGER THAN A YEAR AGO INDUSTRY ANALYSTS ARE ALL OVER THE MAP IN THEIR EXPECTATIONS FOR THIS CHRISTMAS SEASON AND THANKSGIVING WEEKEND DIDN'T ERASE THE UNCERTAINTY DESPITE AN AGGRESSIVE AD CAMPAIGN ZALE REPORTED A 5 SALES DECLINE IN STORES OPEN A YEAR OR MORE BUT TWO COMPETITORS STERLING INC A 934STORE CHAIN BASED IN AKRON OHIO AND BEN BRIDGE JEWELERS INC A 46STORE WEST COAST CHAIN BASED IN SEATTLE WASH POSTED DOUBLEDIGIT SALES GAINS IN STORES OPEN A YEAR OR MORE AND MOST JEWELRY CHAINS HAVE INCREASED INVENTORIES A SIGN OF CONFIDENCE STILL MANY JEWELERS FIGURE THEY NEED NEW TRICKS LIKE THE ONE SHARPLES JEWELRY HAS POPULARIZED JAMIE SHARPLES GOT THE IDEA LAST YEAR FROM FARMERS' BADWEATHER INSURANCE POLICIES AND PAID 3 OF HIS GROSS SALES BETWEEN THANKSGIVING AND CHRISTMAS AS A PREMIUM TO WORLDWIDE WEATHER INC OF GREAT NECK NY HIS SALES FOR THE PERIOD SOARED TO 135000 FROM AN AVERAGE OF 90000 IN EARLIER YEARS AND IT DIDN'T SNOW OTHER PROMOTIONAL SCHEMES ARE POPPING UP A FAYETTEVILLE ARK JEWELER SHIPS OUT CHRISTMAS CATALOGS ON VIDEOCASSETTES ONE IN CEDAR RAPIDS IOWA HAS EMPLOYEES FEED COINS INTO EXPIRED PARKING METERS LEAVING NOTES ADVISING THE OWNERS WHO SAVED THEM FROM TICKETS A WEST CHESTER PA JEWELER MAILS OUT TINY SHOVELS CUSTOMERS CAN USE TO DIG FOR JEWELS IN A SMALL GOLD MINE SET UP AT THE SHOP BIGNAME JEWELERS ARE ALSO MORE AGGRESSIVE STARTING ON THANKSGIVING ZALE THE NATION'S BIGGEST JEWELRY CHAIN OPERATOR BEGAN ADVERTISING ON TELEVISION FOR THE FIRST TIME SINCE 1986 AS PART OF A 35 MILLION CHRISTMAS AD CAMPAIGN MANY JEWELERS ARE ALSO STOCKING UP ON LOWERQUALITY PRODUCTS THAT THEY CAN SELL AT LOWER PRICES TAKE TENNIS BRACELETS THE FLEXIBLE GOLDANDDIAMOND BRACELETS THAT WERE VERY POPULAR LAST CHRISTMAS EVERYBODY WANTS TO HAVE THE LOWEST PRICE POINT ON THEM AND A LOT OF CONSUMERS DON'T UNDERSTAND THE TREMENDOUS VARIATION IN THE QUALITY OF DIAMONDS OUT THERE SAYS ED BRIDGE PRESIDENT OF BEN BRIDGE JEWELERS ANDREAS LUDWIG ZALE'S ACTING CHIEF EXECUTIVE SAYS HE HAS SEEN TENTHOFACARAT TENNIS BRACELETS FOR 99 WITH DIAMONDS HE SNEERS AT AS LITTLE BROWN DOTS ON THE CHAIN A PURVEYOR OF THE TENTHCARAT BRACELETS GARY S GORDON OWNER OF SAMUEL GORDON JEWELERS IN OKLAHOMA CITY DEFENDS THE PRODUCT THESE DAYS HE SAYS IT IS IMPORTANT TO HAVE SOMETHING FOR EVERY POCKETBOOK MR LUDWIG SAYS ZALE'S GORDON DIVISION IS OFFERING A MUCH BIGGER SELECTION THIS FALL OF 10KARAT GOLD JEWELRY WHICH OFFERS MORE BULK FOR THE BUCK THAN 14 18 OR 24KARAT GOLD THE GORDON DIVISION IS ALSO RUNNING A RADIO CAMPAIGN STRESSING 50OFF SALES MR LUDWIG SAYS THAT COMPETITION HAS DRIVEN THE MARKDOWNS AND LED TO DETERIORATION OF HIS COMPANY'S GROSS MARGIN TIFFANY HAS BROADENED ITS CHRISTMAS SELECTION WITH A NEW ACCESSORY LINE FOR MEN IN STAINLESS STEEL THE RETROSTYLED STREAMERICA LINE MEANT TO EVOKE 1930S DESIGNS IS FOR TIFFANY MODERATELY PRICED AND IT IS SELLING VERY WELL SAYS DANA L TELSEY AN ANALYST FOR CJ LAWRENCE TIFFANY AND OTHER HIGHEND JEWELERS STILL HOPE TO LURE BACK HIGH ROLLERS FOLLOWING THE REPEAL LAST AUGUST OF THE 10 LUXURY TAX HARRY WINSTON INC NEW YORK SENT A PRIVATE MAILING TO CUSTOMERS IN AUGUST AND MADE NOTE OF THE REPEAL OF THE BURDEN AGAIN IN ITS CHRISTMAS CATALOG MAINSTREAM JEWELERS ARE ALSO SELLING THE NOTION THAT THEY CAN OFFER QUALITY EXPERTISE SERVICE AND WORKMANSHIP SAYS JAMES S PORTE PRESIDENT OF THE JEWELRY MARKETING INSTITUTE IN NEW YORK THAT'S TIMELY NOW LAST MONTH ABC'S PRIMETIME LIVE NEWS SHOW ACCUSED SOME JEWELERS AND DIAMOND MERCHANTS AS WELL AS RH MACY & CO OF MISREPRESENTING THE QUALITY AND VALUE OF STONES THEY'VE SOLD THE SHOW ALSO SUGGESTED THAT HOME SHOPPING NETWORK INC INFLATES THE SUGGESTED RETAIL VALUE OF DIAMOND JEWELRY IT SELLS BOTH MACY AND HOME SHOPPING NETWORK RESPONDED THAT THEIR DIAMONDS WERE FAIRLY PRICED AND THAT THEY HAVE LIBERAL RETURN POLICIES FOR DISSATISFIED CUSTOMERS TO DRIVE HOME AN IMAGE OF EXPERTISE AND HONESTY MR GORDON THE OKLAHOMA CITY JEWELER DEVELOPED A CHECKLIST FOR POTENTIAL CUSTOMERS IT ADVISES SHOPPERS TO ASK COMPETITORS WHETHER THEY GUARANTEE IN WRITING THE COLOR AND CLARITY GRADING OF THEIR DIAMONDS EMPLOY CERTIFIED GEMOLOGISTS AND MAKE AVAILABLE A MICROSCOPE ON PREMISES AMONG OTHER THINGS HE CREDITS THE LIST ALONG WITH GUARANTEES AND EDUCATIONAL BROCHURES WITH RAISING HIS SALES 20 PERCENTAGE POINTS IN A YEAR JEWELRY RETAILERS ARE ALSO SHARPENING THEIR SERVICE OPERATIONS MR GORDON OFFERS CUSTOMERS FREE CLEANING ENGRAVING SOLDERING INSPECTIONS AND OTHER SERVICES TIFFANY IS OPENING ITS NEW YORK STORE ON SUNDAYS CARLYLE & CO AN 82STORE CHAIN IN GREENSBORO NC IS PROMOTING EXTENDED WARRANTIES AND OFFERING APPRAISALS AND MINOR WATCH REPAIRS WHILE PEOPLE WAIT IT DOESN'T COST MUCH MONEY TO DO A LOT OF THESE THINGS SAYS JOHN COHEN COCHIEF EXECUTIVE AND THEY'RE THINGS STORES LIKE WALMART AREN'T IN A POSITION TO OFFER 9312060028 931206 TECHNOLOGY BRIEF VARIAN ASSOCIATES INC ORDERS IN 2 MONTHS SURGED FOR SEMICONDUCTOR PRODUCTS VARIAN ASSOCIATES INC SAID ORDERS FOR ITS SEMICONDUCTOR PRODUCTS SURGED TO 130 MILLION IN OCTOBER AND NOVEMBER ALONE TOPPING THE PREVIOUS QUARTERLY HIGH OF 103 MILLION FOR THAT BUSINESS THE PALO ALTO CALIF MAKER OF ELECTRONIC DEVICES SAID THE ORDER SURGE CAME FROM CUSTOMERS IN THE US ASIA AND EUROPE AS SEMICONDUCTOR MAKERS SCRAMBLED TO FILL BURGEONING PRODUCT NICHES IN THE WIRELESS COMMUNICATIONS FIELD AS WELL AS IN GENERAL TELECOMMUNICATIONS AND PERSONAL COMPUTERS VARIAN SHARES ROSE 4375 OR 84 TO 5650 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY MAKES ELECTRONIC COMPONENTS FOR SCIENTIFIC INDUSTRIAL MEDICAL TELECOMMUNICATIONS AND DEFENSE MARKETS 9312060027 931206 JAPANESE PAPER FIRMS CONSIDERING SUBSIDIES TO TRIM LABOR COSTS TOKYO JAPAN'S TWO LARGEST PAPER MAKERS ARE LOOKING AT THE POSSIBILITY OF USING SUBSIDIES FROM THE GOVERNMENT TO SHAVE LABOR COSTS AS SOME OTHER MANUFACTURERS HAVE BEEN DOING NIPPON PAPER INDUSTRIES LTD AND NEW OJI PAPER CO ARE STUDYING WHETHER THEY ARE ELIGIBLE TO RECEIVE EMPLOYMENT ADJUSTMENT SUBSIDIES THAT JAPAN'S GOVERNMENT HAS JUST EXPANDED TO INCLUDE THE PAPER INDUSTRY THE SUBSIDIES ARE AIMED AT HELPING COMPANIES IN INDUSTRIES DESIGNATED AS IN RECESSION MAINTAIN EMPLOYMENT LEVELS IN EFFECT BY SUBSIDIZING THEIR EFFORTS TO STREAMLINE OPERATIONS TO COMBAT RECESSION SPOKESMEN FOR THE TWO COMPANIES SAID THEY WERE CONSIDERING WHETHER THEY CAN APPLY THE SUBSIDIES TO THEIR OPERATIONS JAPAN'S LABOR MINISTRY SAID LAST WEEK THAT THE SUBSIDIES WHICH PROVIDE PART OF THE WAGES FOR WORKERS WHO RECEIVE EXTRA DAYS OFF WITH PARTIAL PAY OR WHO TRANSFER TO AFFILIATES WILL NOW APPLY TO THE PAPERBOARD PAINT AND SOFTDRINK INDUSTRIES STEEL AND AUTOMOBILE MAKERS ARE ALREADY MAKING USE OF THE SUBSIDIES AS THEY LAY OFF WORKERS FOR A FEW DAYS EACH MONTH THE SUBSIDIES ARE FOR WAGES THEY WOULD STILL HAVE TO PAY WORKERS BECAUSE OF LABOR AGREEMENTS POLICYMAKERS FEAR SERIOUS INCOME LOSSES WOULD WORSEN ALREADY FLAGGING CONSUMER CONFIDENCE AS THE ECONOMY STRUGGLES TO EMERGE FROM ITS LONG RECESSION THE SUBSIDIES ARE FUNDED THROUGH MANDATORY PAYMENTS BY ALL JAPANESE COMPANIES BUT ARE CONTROLLED BY THE GOVERMENT THE NIPPON PAPER SPOKESMAN SAID HIS COMPANY IS STUDYING WHETHER IT CAN RECEIVE COMPENSATION FOR OFFERING PAID VACATIONS OR FOR TEMPORARILY CLOSING PLANTS THE JAPANESE PAPER INDUSTRY HAS RECENTLY BEEN BURDENED BY OVERCAPACITY 9312060026 931206 TECHNOLOGY VLSI SAYS APPLE DELAYS CANCELS ORDERS STOCK PRICE FALLS 31 SAN JOSE CALIF VLSI TECHNOLOGY INC SAID APPLE COMPUTER INC DELAYED OR CANCELED ORDERS FOR SEVERAL VLSI MICROCHIP PRODUCTS DEPRESSING THE OUTLOOK FOR RESULTS IN THE FIRST HALF OF 1994 VLSI SHARES TUMBLED 450 OR 31 TO 10125 IN NASDAQ STOCK MARKET TRADING TAKING THAT IMPACT INTO ACCOUNT ANALYSTS NOW EXPECT VLSI TO REPORT A PROFIT OF 10 CENTS TO 12 CENTS A SHARE IN THE 1994 FIRST QUARTER AND 13 CENTS TO 15 CENTS IN THE SECOND QUARTER FOR A FIRSTHALF FORECAST RANGING FROM 23 CENTS TO 27 CENTS A SHARE THE COMPANY INDICATED IN THE 1993 FIRST HALF VLSI HAD EARNINGS OF 805000 OR TWO CENTS A SHARE AFTER A WRITEDOWN OF ABOUT 1 MILLION REVENUE IN THE PERIOD TOTALED 2453 MILLION VLSI A MAKER OF CUSTOM MICROCHIPS FOR SPECIFIC COMPUTING COMMUNICATIONS AND INDUSTRIAL APPLICATIONS HASTENED TO ADD THAT IT EXPECTS TO REMAIN STRATEGIC PARTNERS WITH APPLE AND TO CONTINUE WORKING WITH THE PERSONAL COMPUTER MAKER IN DEVELOPING NEW CUSTOM CHIP PRODUCTS FOR APPLE'S PRODUCT LINE MOREOVER A VLSI SPOKESWOMAN SAID THE COMPANY EXPECTS SOME GROWTH FROM OTHER NEW INTEGRATED CIRCUITS SUCH AS ITS PENTIUM AND SCAMP 4 CHIPSETS TO OFFSET THE LOST AND DELAYED ORDERS FRIDAY'S STOCK PLUNGE WAS THE SECOND THIS FALL FOR THE MICROCHIP MAKER IN OCTOBER VLSI SHARES FELL 14 IN ONE DAY DESPITE STRONG QUARTERLY PROFITS DUE TO INVESTOR ANXIETY ABOUT THE DILUTIVE EFFECTS OF A SIXMILLIONSHARE STOCK OFFERING 9312060025 931206 KAZAKHSTAN SETS PACT FOR OIL GAS VENTURE WITH WESTERN GROUP SPECIAL TO THE WALL STREET JOURNAL MOSCOW KAZAKHSTAN AND A CONSORTIUM OF WESTERN OIL COMPANIES ON FRIDAY SIGNED AN AGREEMENT TO EXPLORE AND DEVELOP WHAT COULD BE A LARGE OIL AND GAS FIELD OFF THE COAST OF THE FORMER SOVIET REPUBLIC IN THE CASPIAN SEA AN INITIAL PROTOCOL FOR THE AGREEMENT WAS SIGNED IN JUNE FINANCIAL DETAILS WEREN'T RELEASED BUT COMPANY OFFICIALS SAID INVESTMENTS COULD TOTAL BETWEEN 20 BILLION AND 60 BILLION OVER THE LIFE OF THE PROJECT ACCORDING TO A STATEMENT ISSUED BY THE KAZAKH GOVERNMENT THE COMPANIES INVOLVED ARE MOBIL CORP OF THE US ITALY'S AGIP SPA BRITISH GAS PLC SHELL EXPLORATION BV OF THE NETHERLANDS FRANCE'S TOTAL SA AND A PARTNERSHIP OF BRITISH PETROLEUM CO AND NORWAY'S STATOIL COMPANY OFFICIALS SAID INITIAL SIGNING BONUSES TO BE PAID TO THE KAZAKH GOVERNMENT IMMEDIATELY ARE IN THE TENS OF MILLIONS OF DOLLARS THE WESTERN COMPANIES AGREED TO FORM A CONSORTIUM WITH A STATEOWNED KAZAKH CONCERN KAZAKHSTANCASPISHELF THE VENTURE WILL EXPLORE AND DEVELOP FIELDS BELIEVED TO BE HOLDING BETWEEN 40 BILLION AND 100 BILLION BARRELS OF CRUDE OIL AND 15 TRILLION CUBIC METERS OF NATURAL GAS KAZAKH OFFICIALS SAID BOLTABEK KUANDYKOV DIRECTOR OF KAZAKHSTANCASPISHELF AND DEPUTY MINISTER OF ENERGY AND FUEL SAID NO WELLS HAVE BEEN DRILLED IN THE FIELDS MAKING ESTIMATION OF RESERVES DIFFICULT FIRST PRODUCTION IS EXPECTED AROUND 2002 SAID AXEL COMMICHAU PRESIDENT OF MOBIL OIL KAZAKHSTAN INC OFFICIALS WOULDN'T ESTIMATE WHAT PRODUCTION LEVELS MIGHT BE 9312060024 931206 HUD PRESSES FREDDIE MAC FANNIE MAE TO CUT MORTGAGE LOANPURCHASE LIMITS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IN A RARE BOUT OF MUSCLEFLEXING IS EXHORTING FREDDIE MAC AND FANNIE MAE TO LOWER THEIR MORTGAGE LOANPURCHASE LIMITS FOR 1994 TO MATCH THE DROP IN A HOUSING PRICE INDEX HUD MADE ITS VIEWS KNOWN LATE LAST WEEK AFTER THE FEDERAL HOME LOAN MORTGAGE CORP SAID IT WAS LEAVING ITS LOANPURCHASE LIMIT UNCHANGED FOR 1994 AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION SAID IT WOULD TAKE MORE TIME TO DECIDE THE QUESTION BUT DETAILED REASONS WHY THE LIMIT SHOULD REMAIN THE SAME FREDDIE MAC AND FANNIE MAE BOTH WERE TAKEN ABACK WHEN HUD SECRETARY HENRY CISNEROS REACTED TO THEIR STATEMENTS BY URGING THEM TO LOWER THEIR LOAN LIMITS TO HELP LOW AND MODERATEINCOME HOMEBUYERS THEY ARE EXPECTED TO SEEK HIGHLEVEL TALKS WITH HUD THIS WEEK TO DISCUSS THE MATTER HOW THE ISSUE IS RESOLVED IS OF CONSIDERABLE INTEREST TO THE MORTGAGE FINANCE COMMUNITY NOT ONLY FOR NEARTERM BUSINESS REASONS BUT ALSO AS A SIGN OF HOW THE TWO COMPANIES' RELATIONSHIP WITH THE FEDERAL GOVERNMENT WILL EVOLVE THE DISPUTE OVER AIDING LOW TO MODERATEINCOME HOMEBUYERS COMES AT A TIME WHEN FEDERAL RESOURCES ARE STRAINED AND FANNIE MAE AND FREDDIE MAC ARE ENJOYING HEFTY PROFITS BY PURCHASING MORTGAGES AND PACKAGING THEM INTO SECURITIES THE TWO CONGRESSIONALLY CHARTERED SHAREHOLDEROWNED COMPANIES HELP INCREASE THE SUPPLY AND REDUCE THE COST OF MONEY FOR HOME MORTGAGES THE MATTER WILL HAVE TO BE DECIDED SOON SO MORTGAGE LENDERS CAN BE CERTAIN ABOUT THE 1994 LOAN PURCHASE LIMITS THE LOAN LIMIT REFLECTS THE MAXIMUM LOAN THAT CAN BE PURCHASED BY FANNIE MAE OR FREDDIE MAC MORTGAGE BANKERS AND A BANK GROUP ALREADY HAVE ASKED HUD TO BACK OFF THE LOAN LIMIT FOR SINGLEFAMILY CONVENTIONAL MORTGAGES IS NOW 203150 IT WOULD BE 197100 FOR 1994 IF THE COMPANIES FOLLOW THE 296 DECLINE IN THE FEDERAL HOUSING FINANCE BOARD'S HOUSEPRICE INDEX FREDDIE MAC DOESN'T THINK HUD HAS THE STATUTORY AUTHORITY TO COMPEL IT TO REVERSE ITS DECISION AND HAS NO PLANS TO REDUCE ITS LOAN LIMIT COMPANY OFFICIALS INDICATED FANNIE MAE WHICH SAID LAST WEEK THAT IT WOULD MAKE A DECISION BY THE END OF THE YEAR EVEN WHILE WARNING THAT LOWERING THE LIMIT WOULD HURT THE HOUSING MARKET WON'T HAVE ANY FURTHER COMMENT UNTIL WE COMPLETE OUR REVIEW OF THE QUESTION SAID FANNIE MAE SPOKESMAN DAVID JEFFERS IN URGING A REDUCTION IN THE LOANPURCHASE LIMITS HUD SAID IT HAS GENERAL REGULATORY RESPONSIBILITY OVER THE TWO COMPANIES THAT INCLUDES REGULATION OF PERFORMANCE IN PUBLIC SERVICES AND INSURING THAT THE BENEFITS OF THEIR PROGRAMS ARE AVAILABLE TO LOW AND MODERATEINCOME AMERICANS RESIDENTS OF URBAN NEIGHBORHOODS AND OTHER UNDERSERVED BORROWERS THE CURRENT FLAP WAS SPARKED BY A NEARLY 3 DROP IN A HOUSING PRICE INDEX ON WHICH THE TWO MORTGAGE FINANCE GIANTS CALCULATE THE MAXIMUM SIZE OF THE HOME LOANS THEY BUY AFTER FREDDIE MAC AND FANNIE MAE ANNOUNCED THEIR PLANS RELATIVE TO THE INDEX CHANGE MR CISNEROS URGED THEM TO FOLLOW THE INDEX DOWN AS THEY HAVE FOLLOWED IT UP OVER THE YEARS BY NOT REDUCING THEIR LOAN LIMITS FANNIE MAE AND FREDDIE MAC ARE DILUTING THEIR FOCUS ON PROVIDING REQUIRED PUBLIC PURPOSE BENEFITS TO LOWERINCOME HOMEBUYERS THE SECRETARY SAID THE MORTGAGE BANKERS ASSOCIATION AND THE AMERICAN BANKERS ASSOCIATION SAID CUTTING THE LOAN LIMITS WON'T HELP HOMEBUYERS AND COULD ROIL REALESTATE MARKETS IN HIGHCOST AREAS THE IMPACT OF LOWER MORTGAGE LIMITS COULD PREVENT MANY DESERVING BORROWERS FROM BUYING THEIR OWN HOMES SAID WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS GROUP 9312060023 931206 PRUDENTIAL INSURANCE MOVES FURTHER TO REDUCE PROPERTY CASUALTY EXPOSURE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL INSURANCE CO OF AMERICA IS TAKING FURTHER STEPS TO SCALE DOWN ITS PRESENCE IN PROPERTY AND CASUALTY INSURANCE IN THE WAKE OF LAST YEAR'S NEARLY 1 BILLION LOSS ON HURRICANE ANDREW PRUDENTIAL HAS NOTIFIED 2200 OR 11 OF ITS INSURANCE AGENTS THAT THEY CAN NO LONGER WRITE NEW PROPERTY AND CASUALTY POLICIES THE AFFECTED AGENTS WHO ARE LOCATED ACROSS THE COUNTRY ACCOUNT FOR 17 OF PRUDENTIAL'S 18 BILLION IN ANNUAL PROPERTY AND CASUALTY PREMIUMS PRUDENTIAL WILL CONTINUE TO RENEW OLD POLICIES WRITTEN BY THE AGENTS IN A SEPARATE MOVE PRUDENTIAL AS PART OF A SETTLEMENT REACHED WITH THE FLORIDA INSURANCE COMMISSIONER HAS AGREED TO PAY A YEAR'S WORTH OF HOMEOWNERS' INSURANCE PREMIUMS FOR ANY PRUDENTIAL POLICYHOLDER IN THE STATE WHO SWITCHES TO ANOTHER COMPANY PRUDENTIAL AGREED TO MAKE THE PAYMENTS IN RETURN FOR BEING ALLOWED TO REDUCE ITS MARKET SHARE IN THE STATE AND THEREBY REDUCE ITS POTENTIAL FOR A BIG HURRICANE LOSS PRUDENTIAL SAYS THE OFFER EXTENDS TO ITS 32000 POLICYHOLDERS IN THE MIAMI AREA IF EVERY POLICYHOLDER TOOK IT IT WOULD COST US 20 MILLION SAID A PRUDENTIAL SPOKESMAN BUT WE DON'T BELIEVE THEY WILL ALL TAKE IT HURRICANE ANDREW WHICH DEVASTATED PARTS OF SOUTH FLORIDA IN AUGUST 1992 COST THE NEWARK NJ COMPANY 940 MILLION WIPING OUT THE NET WORTH OF ITS PROPERTY AND CASUALTY UNIT AND FORCING PRUDENTIAL TO INVEST 900 MILLION IN THE SUBSIDIARY TO KEEP IT AFLOAT SINCE THEN PRUDENTIAL HAS ANNOUNCED PLANS TO SELL PART OF ITS PROPERTY AND CASUALTY REINSURANCE COMPANY TO THE PUBLIC IN PART TO RAISE CAPITAL THE COMPANY ALSO HAS COMPLETED A STUDY OF HOW BEST TO ALLOCATE ITS CAPITAL PRUDENTIAL DENIES IT HAS LOST INTEREST IN THE PROPERTY AND CASUALTY BUSINESS BUT INSURANCE EXPERTS ARE SKEPTICAL THEIR ACTIONS SEEM TO BELIE THEIR WORDS SAID FREDERICK TOWNSEND A CONSULTANT WITH TOWNSEND & SCHUPP IN HARTFORD CONN HE OBSERVED THAT UNLIKE PRUDENTIAL'S FLAGSHIP LIFE INSURANCE BUSINESS THE PROPERTY AND CASUALTY BUSINESS IS EXTREMELY UNPREDICTABLE AND MIGHT MAKE PRUDENTIAL UNCOMFORTABLE THE SETTLEMENT PRUDENTIAL REACHED IN FLORIDA WILL HELP EASE THE DISRUPTION NOW ROCKING THE STATE'S HOMEOWNER INSURANCE MARKET TO STEM AN EXODUS OF INSURERS FROM FLORIDA THE STATE RECENTLY PASSED A LAW THAT FORBIDS COMPANIES FROM REDUCING THEIR BUSINESS BY MORE THAN 5 A YEAR IN THE STATE AND MORE THAN 10 IN ANY COUNTY INSURERS WANTED TO DROP POLICIES ON THE COAST AND ADD SOME ON THE INSIDE SAID FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER WE WOULDN'T LET THEM DO THAT AS INSURERS HAVE DROPPED POLICYHOLDERS THE STATE HAS BEEN FORCED TO PICK UP THE SLACK BECOMING THE INSURER OF LAST RESORT FOR HOMEOWNERS THE STATE'S HOMEOWNER UNDERWRITING ASSOCIATION WHICH BY LAW MUST CHARGE MORE THAN THE COMMERCIAL MARKET IS NOW FLORIDA'S THIRDLARGEST INSURER BEHIND STATE FARM MUTUAL INSURANCE CO AND ALLSTATE CORP THE STATE PROGRAM HAS 250000 POLICYHOLDERS OR 12 OF THE FLORIDA HOMEOWNER INSURANCE MARKET AND EXPECTS AS MANY AS 600000 WITHIN A YEAR SOME COMPANIES ARE SEEING OPPORTUNITY IN THE DISLOCATION SAFEWAY INSURANCE CO A CLOSELY HELD PROPERTY AND CASUALTY INSURER IN CHICAGO RECENTLY BECAME THE FIRST INSURER TO APPLY FOR AN INSURANCE LICENSE IN THE STATE SINCE THE HURRICANE ACCORDING TO STATE OFFICIALS THERE'S SOME EVIDENCE THAT THE MARKET IS COMING BACK SAID JAMES BAX CHAIRMAN OF THE FLORIDA UNDERWRITING ASSOCIATION HE IS CONFIDENT THAT PROFIT OPPORTUNITIES WILL ENCOURAGE COMPANIES TO WRITE MORE BUSINESS DESPITE THE RISK OF A BIG STORM THE ONLY THING THAT WOULD SCREW EVERYTHING UP IS ANOTHER BIG HURRICANE AS FOR PRUDENTIAL THE COMPANY NOW MUST BRACE FOR AN OUTCRY FROM THE 2200 AGENTS WHOSE ACTIVITIES HAVE BEEN LIMITED THE TARGETED AGENTS ARE THOSE WHO SPECIALIZE IN SELLING TO AFFLUENT CUSTOMERS THE BULK OF PRUDENTIAL'S 20000 INSURANCE AGENTS SELL TO MIDDLECLASS CUSTOMERS NO CHANGES ARE PLANNED FOR THOSE AGENTS ALTHOUGH THE AFFECTED AGENTS ARE LICENSED TO SELL BOTH LIFE AND PROPERTY INSURANCE MANY OF THEM DEPEND ON PROPERTY INSURANCE FOR THEIR LIVELIHOOD JOHN SARACINO AN AGENT IN BUCKS COUNTY PA WHO HAS BEEN WITH PRUDENTIAL MORE THAN TWO DECADES CHARGED THAT AS MANY AS 1200 AGENTS COULD LOSE THEIR JOBS HE SAID THE AGENTS PLAN TO FIGHT THE MOVE IT'S A DISGRACE HE SAID THEY TELL US RIGHT WHEN THE HOLIDAYS COME UP THAT WE'RE GOING TO BE FIRED PRUDENTIAL COUNTERS THAT NO ONE IS BEING FIRED BUT ACKNOWLEDGES THAT SOME 200 AGENTS WILL BE OFFERED OTHER MARKETING OPPORTUNITIES WITHIN THE COMPANY MR SARACINO SAID PRUDENTIAL IS MOTIVATED BY A DESIRE TO RAISE CAPITAL PRUDENTIAL WILL GET TO KEEP COMMISSIONS THAT WOULD HAVE GONE TO AGENTS FOR RENEWAL BUSINESS HE SAID BUT PRUDENTIAL SAID THE ACTION IS INTENDED TO ENCOURAGE THE AGENTS TO FOCUS ON LIFE INSURANCE DISABILITY INCOME INSURANCE AND ANNUITIES JOHN SNYDER A SENIOR VICE PRESIDENT AT AM BEST CO AN INSURANCE RATING AGENCY SAID PRUDENTIAL IS UNLIKELY TO TAKE THE PROPERTY AND CASUALTY BUSINESS AWAY FROM ITS MIDDLEMARKET AGENTS HE SAID THE PROPERTY BUSINESS IS TOO TIGHTLY LINKED WITH THE LIFE INSURANCE BUSINESS IN THAT MARKET ANOTHER REASON MIGHT BE THE POTENTIAL FOR LABOR UNREST PRUDENTIAL'S MIDDLEMARKET AGENTS WHO LOOK TO HOMEOWNER AND CAR INSURANCE TO AUGMENT THEIR LIFE INSURANCE BUSINESS ARE NOW IN CONTRACT NEGOTIATIONS WITH THE COMPANY THE AGENTS HAVE ALREADY REJECTED TWO CONTRACTS NEGOTIATED FOR THEM BY THEIR UNION COMPENSATION AND HEALTH BENEFITS ARE AMONG THE ISSUES IN DISPUTE 9312060022 931206 WALMART DEFENDS QUALITY OF ITS SEIKOBRAND WATCHES BENTONVILLE ARK WALMART STORES INC COUNTERING ALLEGATIONS LAST WEEK BY THE FLORIDA ATTORNEY GENERAL SAID THAT SEIKOBRAND WATCHES IT SELLS IN ITS STORES DO CARRY WARRANTIES AND ARE OF FIRST QUALITY SIMILAR TO THOSE SOLD BY AUTHORIZED SEIKO DEALERS FLORIDA'S ATTORNEY GENERAL ROBERT A BUTTERWORTH ALLEGED THAT SEIKO WATCHES SOLD AT WALMART'S ARE GREY MARKET GOODS MADE ABROAD FOR SALE ABROAD AND IMPORTED WITHOUT THE MANUFACTURER'S CONSENT SEIKO CORP OF TOKYO SAID SUCH WATCHES ARE OF LOWER QUALITY THAN WATCHES IT MAKES FOR SALE IN THIS COUNTRY AND SEIKO WON'T HONOR WARRANTIES ON THEM IN A REQUEST TO ENFORCE A SUBPEONA FOR COMPANY RECORDS FILED THURSDAY IN STATE CIRCUIT COURT IN LEON COUNTY FLA MR BUTTERWORTH SAID THAT WALMART FRAUDULENTLY MISLED CONSUMERS TO BELIEVE THE WATCHES CARRIED SEIKO WARRANTIES AND WERE OF THE SAME QUALITY AS WATCHES SOLD THROUGH AUTHORIZED SEIKO DEALERS ROBERT K RHOADS WALMART'S GENERAL COUNSEL RESPONDED IN A WRITTEN STATEMENT THAT IT APPEARS THAT ONE OR MORE OF OUR JEWELRY ASSOCIATES IN FLORIDA MISTAKENLY ADVISED CUSTOMERS THAT THE WATCHES IT SOLD CARRIED THREEYEAR MANUFACTURER'S WARRANTIES MR RHOADS SAID THE WATCHES DO CARRY WARRANTIES FROM THE VENDORS BIG BEN NINETY OF SUNRISE FLA AND DALTON INC NEW YORK WE APOLOGIZE FOR THAT MISTAKE MR RHOADS SAID ADDING THAT INFORMATION EXPLAINING THE WARRANTIES HAS BEEN DISTRIBUTED TO EMPLOYEES HE ALSO CITED WALMART'S GUARANTEE TO EXCHANGE OR FULLY REFUND ANY PRODUCT WITH WHICH A CUSTOMER IS DISSATISFIED OFFICIALS AT SEIKO CORP OF AMERICA COULDN'T BE CONTACTED OVER THE WEEKEND NEITHER COULD REPRESENTATIVES OF BIG BEN NINETY NOR OF DALTON 9312060021 931206 LETTERS TO THE EDITOR LOVE OF READING MUST BE NURTURED IN REGARD TO CHRISTOPHER DE VINCK'S NOV 27 EDITORIAL PAGE ESSAY WHY I READ TO MY CHILDREN MR DE VINCK BELIEVES THAT THE CHILDREN WITH A WIDE READING BACKGROUND ARE THE ONES BEST EQUIPPED TO DO WELL IN HIS ENGLISH CLASSROOM HE'S ABSOLUTELY RIGHT BUT HE'S NOT RIGHT WHEN HE ASSUMES THAT CHILDREN WHO LACK THIS BACKGROUND WERE NOT READ TO AT HOME I'M ALSO AN ENGLISH TEACHER AND HAVE HAD LEGIONS OF PARENTS DURING MY 22 YEARS IN THE CLASSROOM TELL ME THEY'VE READ TO THEIR CHILDREN TAKEN THEM TO THE LIBRARY BOUGHT THEM BOOKS AND THEN WATCHED SADLY AS THEIR CHILDREN GREW OLDER AND RARELY PICKED UP A BOOK FOR PLEASURE MOST PARENTS DO READ TO THEIR CHILDREN THE REAL CULPRIT IN THE READING CRISIS IS THE SCHOOLS SCHOOLS DO VERY LITTLE TO HELP STUDENTS DEVELOP AS INDEPENDENT AVID READERS THE WHOLE EDUCATIONAL ESTABLISHMENT TEACHERS ESPECIALLY NEEDS TO STOP BLAMING PARENTS AND ACCEPT RESPONSIBILITY FOR BRINGING A LOVE OF BOOKS TO CHILDREN WE ADULTS SHOULD PLAN OUR OWN READING IN THE SAME SPIRIT THAT MR DE VINCK CHOOSES BOOKS TO READ TO HIS CHILDREN FOR IN TRYING TO KEEP UPTODATE IN OUR PROFESSIONAL FIELDS WE FAIL TO READ FOR THE LONG HAUL TO FURNISH OUR INNER LIVES WHICH IS THE ROLE LITERATURE PLAYS BEST MOST OF US WILL EXPERIENCE GREAT JOY AND DEEP SORROW AS WE GROW OLDER BUT IF WE CAN MANAGE OVER THE YEARS TO SPEND SOME OF OUR FREE MOMENTS WITH AUSTEN DICKENS AND TROLLOPE WE MIGHT HAVE A BIT MORE STRENGTH TO RIDE OUT THE WORST AND PERHAPS A GREATER CAPACITY TO SAVOR THE BEST 9312060020 931206 BUSINESS & RACE BY LEON E WYNTER THE ANNUAL HISPANIC MARKETING CONFERENCE IS CALLED SE HABLA ESPANOL SPANISH SPOKEN HERE BUT ONE OF THE HOTTEST TOPICS AT THIS YEAR'S MEETING IN NEW YORK WAS HOW TO REACH HISPANIC CONSUMERS WITH ADS ON ENGLISHLANGUAGE TELEVISION AT THE CONFERENCE SPONSORED BY HISPANIC BUSINESS MAGAZINE LAST MONTH SOME ADAGENCY REPRESENTATIVES EXPRESSED CONCERN ABOUT WHETHER CLIENTS WOULD THINK SUCH AN APPROACH MADE SENSE WE HAVE A VERY DIFFICULT TIME CONVINCING COORS THAT ENGLISHLANGUAGE PROGRAMMING WILL SELL BEER TO HISPANICS OBSERVED JOHN D'ACIERNO OF GSD&M ADVERTISING AUSTIN TEXAS BUT PANEL MODERATOR RADAMES SOTO PRESIDENT OF BLUE PEARL A NEW YORK PRODUCTION COMPANY THAT CREATES TV SHOWS FOR HISPANICS IN ENGLISH ADVISED MR D'ACIERNO TO GO BY THE NUMBERS 60 OF HISPANIC TVWATCHERS TUNE PRIMARILY TO ENGLISHLANGUAGE PROGRAMS AND THESE VIEWERS MAKE UP THE YOUNGEST MOST AFFLUENT PART OF THE MARKET EARLY BIGMARKET EFFORTS TO TAILOR SOME ENGLISHLANGUAGE PROGRAMMING TO HISPANIC VIEWERS ALREADY SEEM TO BE PAYING OFF FOX TELEVISION FOR INSTANCE HAS SUCCESSFULLY LAUNCHED A COMEDY SHOW CALLED CULTURE CLASH IN LOS ANGELES DALLAS AND HOUSTON IT PLANS TO EXPAND IT NATIONALLY OVER THE NEXT YEAR IN ADDITION TRIBUNE ENTERTAINMENT HAS WON STRONG RATINGS FOR ITS COMEDY COMPADRES SHOW IN LOS ANGELES DESPITE THESE DEVELOPMENTS SPANISHLANGUAGE RADIO AND TV STILL GETS ALMOST ALL OF THE TINY 1 OF US MARKETING DOLLARS AIMED AT HISPANICS BUT IN LIGHT OF NEW VIEWERSHIP STUDIES THAT SHOW AMONG OTHER THINGS THAT THE SIMPSONS IS THE FAVORITE SHOW OF HISPANICS MR D'ACIERNO SEES SIGNS OF A SHIFT WE CAN SEE THINGS NOW THAT WE DIDN'T SEE BEFORE HE SAYS ACCULTURATED SECONDGENERATION HISPANICS ARE THE FASTEST GROWING SEGMENT THAT IS VERY IMPORTANT AS MINORITYOWNED CONSTRUCTION FIRMS CONTINUE TO HAVE GREAT DIFFICULTY GETTING GOVERNMENT CONTRACTS A SMALLCONTRACTORS' INDUSTRY GROUP OFFERS SOME IDEAS ON HOW TO IMPROVE MATTERS A REPORT BY THE REGIONAL ALLIANCE FOR SMALL CONTRACTORS AND THE NEW YORK BUILDING CONGRESS NOTES THAT IN 1991 MINORITYOWNED FIRMS RECEIVED ONLY 1 OF THE REVENUE FROM CONSTRUCTION CONTRACTS WITH NEW YORK STATE AGENCIES A KEY REASON THE INDUSTRY GROUP FOUND WAS THAT MOST MINORITYOWNED FIRMS ARE SMALL AND THE SELECTION AND PAYMENT PROCESSES TYPICALLY FAVOR LARGER OR BETTERKNOWN OPERATIONS SMALLER FIRMS ARE HANDICAPPED BY THEIR DIFFICULTY IN GETTING CONSTRUCTION BONDS FROM SURETY COMPANIES AND THEIR CASHFLOW PROBLEMS ARE EXACERBATED BY THE TENDENCY OF PUBLIC AGENCIES TO DELAY PROGRESS PAYMENTS AS LONG AS POSSIBLE IN ADDITION SMALLER FIRMS ARE DISPROPORTIONATELY INCONVENIENCED BY COMPLICATED DUPLICATIVE AGENCYCERTIFICATION PROCESSES AMONG THE INDUSTRY GROUP'S RECOMMENDATIONS ARE FOR STATE GOVERNMENTS TO SECURE BONDING COMMITMENTS FROM SURETY COMPANIES ON BEHALF OF MINORITY FIRMS AND TO ESTABLISH A ONESTOP CERTIFICATION PROCESS FOR ALL AGENCIES' WORK IN ADDITION AGENCIES SHOULD MAKE PROGRESS PAYMENTS EVERY TWO WEEKS ON ANY PROJECT UNDER 500000 THE GROUP SAID THE GROUP'S REPORT ALSO SUGGESTED THAT GOVERNMENTS COMPILE A LIST OF QUALIFIED MINORITY SUBCONTRACTORS AND SHARE IT WITH ANY GENERAL CONTRACTORS WITH WHICH IT WORKS DOES THE SUCCESS OF THE JOY LUCK CLUB AUGUR AN ASIAN FILM BOOM IN THE US THE MOVIE BASED ON AMY TAN'S NOVEL HAS GROSSED 22 MILLION AND IS STILL FILLING THEATERS AND SEVERAL FILMS FEATURING ASIANS ARE IN THE WORKS BUT JOY LUCK'S PATH TO SUCCESS SUGGESTS THAT THE FATE OF THESE FILMS WILL DEPEND LESS ON THEIR ETHNICITY THAN ON THEMATIC CONTENT THE MARKETING OF JOY LUCK NOW IN 600 THEATERS AFTER EIGHT WEEKS STRESSED THE UNIVERSALITY OF THE STORIES SHARED BY MOTHERS AND DAUGHTERS AND LITTLE ATTEMPT WAS MADE TO TARGET ASIANAMERICAN AUDIENCES THE FILM'S EXECUTIVE PRODUCER JANET YANG CONCLUDES THAT MAINSTREAM SUCCESS FOR ASIANAMERICAN THEMES REQUIRES FINDING THAT PART OF AN ETHNIC CULTURE WHICH IS INDIGENOUS AND TRUE AND THEN CREATING A POINT OF ACCESS FOR A LARGER AUDIENCE TO RELATE TO IT STEPHEN GONG OF PACIFIC FILM ARCHIVES AN ASIAN FILM CENTER AT THE UNIVERSITY OF CALIFORNIA BERKELEY CONCURS RATHER THAN THIS BEING AN ASIANAMERICAN MOMENT I THINK IT IS PART OF A LARGER SUSTAINED TIME PERIOD WE LIVE IN DEALING WITH REAL ISSUES OF DIFFERENCE IN THE UNITED STATES AND FINDING DIFFERENT STORIES TO TELL HE SAYS BY TAKING ITS MESSAGE TO THEIR STREETS KENTUCKY FRIED CHICKEN IS GETTING BACK TO BASICS WITH AFRICANAMERICAN CONSUMERS TO BOOST ITS POPCORN CHICKEN ITEM WITH CHICAGO BLACKS THE PEPSICO UNIT THREW PARKINGLOT PARTIES AT 29 SELECTED NEIGHBORHOOD STORES LAST SUMMER REPLETE WITH DANCE CONTESTS AND PRIZES AFTER THE PROMOTION ARRANGED BY CHICAGO CONSULTING FIRM RESOURCE ASSOCIATES INTERNATIONAL POPCORN CHICKEN SALES IN THE TARGETED STORES ROSE 16 FROM YEAREARLIER FIGURES BUOYED BY THIS EFFORT RAI THEN SUGGESTED THAT KFC GIVE FINANCIAL SUPPORT TO HIGHSCHOOL MARCHING BANDS AND ARRANGE PARADES FOR THEM IN ADDITIONAL TARGET NEIGHBORHOODS BANDS BEARING KFC BANNERS AND SOMETIMES EVEN WEARING KFC UNIFORMS MARCHED THROUGH SOME CHICAGO AND DETROIT AREAS ON NINE DIFFERENT WEEKENDS THIS FALL KFC HAS ALSO IDENTIFIED 500 STORES THAT PRIMARILY CATER TO BLACKS AND CREATED NEW MENUS PROVIDED EMPLOYEE UNIFORMS WITH AUTHENTIC AFRICAN KENTE CLOTH AND EVEN SUPPLIED BACKGROUND MUSIC CHOSEN FOR BLACK TASTES THE CHANGES HAVE BEEN MADE IN 300 OF THE STORES 9312060019 931206 LETTERS TO THE EDITOR HERE IN SCRANTON THE WATER'S FINE WE TAKE STRONG EXCEPTION TO YOUR OCT 12 ARTICLE CLAIMS OF BAD WATER CAUSE BAD BLOOD IN PENNSYLVANIA FIRST REGARDING YOUR REFERENCE TO SCRANTON AS AN OLD MINING TOWN MINES HAVE NOT OPERATED IN SCRANTON SINCE THE 1950S FOUR DECADES AGO ALTHOUGH WE ARE PROUD OF OUR ROOTS IN THE MINING INDUSTRY SCRANTON HAS SUCCESSFULLY MOVED BEYOND THAT ERA AND IS A GREAT PLACE IN WHICH TO WORK AND LIVE ON THE ISSUES OF WATER QUALITY IN SCRANTON AND PENNSYLVANIA GAS & WATER'S RELATIONSHIP WITH ITS CUSTOMERS LET'S CLARIFY SEVERAL MISCONCEPTIONS YOUR UNREALISTIC CLAIM THAT FEW PEOPLE DRINK THE WATER GAVE THE IMPRESSION THAT SCRANTON IS RIFE WITH WATERQUALITY PROBLEMS SUCH PROBLEMS DID EXIST IN THE PAST PRIOR TO FILTRATION HOWEVER THIS IS NO LONGER TRUE FOLLOWING ONE OF THE MOST AGGRESSIVE FILTERPLANT CONSTRUCTION PROGRAMS IN THE US PG&W BUILT EIGHT STATEOFTHEART WATER TREATMENT PLANTS IN JUST FIVE YEARS AT A COST OF 190 MILLION ALTHOUGH YOU ACKNOWLEDGE THAT SCRANTON'S WATER IS NOW FILTERED AND MEETS INDUSTRY STANDARDS IT IMPLIES THAT WATER QUALITY IS DEGRADED AS IT MAKES ITS WAY THROUGH AN ANTIQUATED DISTRIBUTION SYSTEM PG&W HAS AN EXTENSIVE WATERQUALITY MONITORING PROGRAM IN PLACE AND HAS INVESTED MORE THAN 67 MILLION IN WATERDISTRIBUTION SYSTEM IMPROVEMENTS AN INDEPENDENT CONSULTANT USING AN OUTSIDE CERTIFIED LABORATORY PERFORMED A TWOYEAR WATER QUALITY EVALUATION IN THE SCRANTON AREA THAT SUPPORTED PG&W'S TESTING RESULTS THE DATA FROM BOTH TESTS SUBSTANTIATE THAT PG&W WATER IN SCRANTON MEETS PRIMARY STANDARDS AT CUSTOMER TAPS 100 OF THE TIME AND SECONDARY STANDARDS 99 OF THE TIME 9312060018 931206 WHO'S NEWS FOREST OIL CORP FOREST OIL CORP DENVER THREE EXECUTIVES WERE GIVEN NEW POSITIONS DAVID H KEYTE 37 YEARS OLD FORMERLY CONTROLLER WAS NAMED VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER KENTON M SCROGGS 41 BECOMES A VICE PRESIDENT HE REMAINS TREASURER JOAN C SONNEN 40 FORMERLY DIRECTOR OF FINANCIAL AND GENERAL ACCOUNTING WAS NAMED CONTROLLER 9312060017 931206 DOCTOR IS PICKED TO HEAD AGENCY ON HIGHWAY SAFETY BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID HE WILL NOMINATE RICARDO MARTINEZ A 38YEAROLD PHYSICIAN TO LEAD THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION DR MARTINEZ'S CHOICE IS A COMPROMISE OF SORTS BETWEEN DETROIT WHICH PREFERRED SOMEBODY WITH AN AUTOMOTIVE BACKGROUND AND ITS CRITICS WHICH WANTED A CARSAFETY ADVOCATE WHILE HE HAS HAD LOOSE AFFILIATIONS WITH AUTO SAFETY GROUPS DR MARTINEZ HAS APPROACHED AUTO INJURIES AS A HEALTHCARE ISSUE SOMETHING THAT IS INCREASINGLY IN VOGUE THE NHTSA HASN'T HAD A DOCTOR AT ITS HELM SINCE CONGRESS CREATED IT IN 1966 TO SET AUTOSAFETY STANDARDS UNTIL LAST MONTH WHEN HE TOOK A JOB WITH THE EMORY UNIVERSITY INJURY PREVENTION CENTER IN ATLANTA DR MARTINEZ WAS AFFILIATED WITH STANFORD UNIVERSITY WHERE HE SPECIALIZED IN TRAUMA CARE AND AUTOMOTIVE MEDICINE HE HAD BEEN TRANSPORTATION SECRETARY FEDERICO PENA'S CANDIDATE TO LEAD THE CARSAFETY AGENCY SINCE THE SUMMER BUT THE WHITE HOUSE'S BACKGROUND REVIEW DRAGGED ON FOR MONTHS IN THE MEANTIME MR PENA TOOK OVER PERSONAL REVIEW OF THE NHTSA DECISION ON WHETHER TO TRY TO FORCE A 1 BILLION RECALL OF GM PICKUP TRUCKS WITH SIDESADDLE GAS TANKS BY THE TIME DR MARTINEZ'S SENATE CONFIRMATION HEARINGS ARE COMPLETED MR PENA AND THE NHTSA STAFF MAY WELL HAVE MADE THAT DECISION BUT FOLLOWING THROUGH ON IT WOULD STILL BE DR MARTINEZ'S BIGGEST TASK IF THE TRANSPORTATION DEPARTMENT PUSHES AHEAD AGAINST GM IN ADDITION THE AGENCY IS TRYING TO WRITE RULES TO PREVENT INJURIES FROM VEHICLES THAT ROLL OVER AND TO LIMIT HEAD INJURIES IN OTHER TYPES OF CRASHES IT'S STILL UNCLEAR HOW FAR THE NHTSA WILL GO TO DICTATE DESIGN DECISIONS TO AUTO MAKERS DR MARTINEZ IS UNLIKELY TO ATTRACT STRONG OPPOSITION IN THE SENATE STILL THE ALCOHOLIC BEVERAGE INDUSTRY WAS SAID TO HAVE HAD CONCERNS ABOUT DR MARTINEZ WHO HAS WRITTEN ARTICLES CRITICAL OF ALCOHOL ADVERTISING AND SOME CONGRESSMEN INCLUDING REP ROBERT CARR D MICH HAVE EXPRESSED CONCERNS ABOUT HIS LACK OF ENGINEERING BACKGROUND REP CARR WHO CHAIRS THE HOUSE TRANSPORTATION APPROPRIATIONS SUBCOMMITTEE HAS PUSHED FOR CHRISTOPHER HART TO BE NAMED DEPUTY ADMINISTRATOR AT THE NHTSA BUT NO DECISION WAS ANNOUNCED ABOUT MR HART A FORMER NATIONAL TRANSPORTATION SAFETY BOARD MEMBER WHO AT ONE POINT WAS CONSIDERED FOR THE TOP SPOT BOTH MEN WOULD HELP FULFILL PRESIDENT CLINTON'S DRIVE FOR DIVERSITY DR MARTINEZ IS HISPANIC WHILE MR HART IS BLACK 9312060016 931206 COSMETIC CENTER NOVEMBER SALES SAVAGEMD COSMETIC CENTER INC A 49STORE SPECIALTY RETAILER SAID NOVEMBER SALES ROSE 191 TO 111 MILLION FROM 93 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR INCREASED 53 9312060015 931206 UNEMPLOYMENT RATE IN IRELAND LONDON IRELAND'S UNEMPLOYMENT RATE FELL TO A SEASONALLY ADJUSTED 177 IN NOVEMBER FROM 178 IN OCTOBER THE CENTRAL STATISTICS OFFICE SAID WITHOUT SEASONAL ADJUSTMENT IRELAND'S UNEMPLOYMENT RATE ROSE TO 174 IN NOVEMBER FROM 173 IN OCTOBER THE FIGURES REFLECT INDIVIDUALS IN IRELAND'S WORK FORCE WHO ARE RECEIVING UNEMPLOYMENT BENEFITS OR UNEMPLOYMENT ASSISTANCE AS WELL AS JOBLESS WORKERS WHO AREN'T CURRENTLY ENTITLED TO BENEFITS THE NUMBER OF PEOPLE CONSIDERED UNEMPLOYED IN NOVEMBER WAS UP 500 FROM OCTOBER AND UP 700 FROM A YEAR EARLIER 9312060014 931206 COMCAST SWITCH ON S&P 500 NEW YORK STANDARD & POOR'S CORP SAID IT WILL REPLACE COMCAST CLASS A SHARES ON THE S&P 500 WITH COMCAST CLASS A SPECIAL SHARES THE CHANGE WILL TAKE EFFECT FRIDAY S&P SAID COMCAST CLASS A SPECIAL SHARES HAVE MORE LIQUIDITY AND ARE MORE ACTIVELY TRADED THAN THE COMCAST CLASS A SHARES THERE ARE ABOUT 96 MILLION COMCAST CLASS A SPECIAL SHARES OUTSTANDING AND 50 MILLION COMCAST CLASS A SHARES CLASS A SPECIAL SHARES HAVE NO VOTING POWER WHILE CLASS A SHARES EACH HAVE ONE VOTE COMCAST PHILADELPHIA IS A CABLE AND CELLULARCOMMUNICATIONS COMPANY 9312060013 931206 OLD AMERICA STORES SALES ROSE HOWE TEXAS OLD AMERICA STORES INC SAID SALES IN NOVEMBER ROSE 121 TO 111 MILLION FROM 99 MILLION A YEAR EARLIER THE ARTS AND CRAFTS RETAILER SAID SALES FOR THE MONTH IN STORES OPEN A YEAR OR MORE FELL 34 FOR THE 42 WEEKS THE COMPANY SAID SALES ROSE 16 TO 745 MILLION FROM 642 MILLION A YEAR AGO WITH SALES AT STORES OPEN A YEAR OR MORE UP 07 9312060012 931206 CORRECTIONS & AMPLIFICATIONS A CHART ACCOMPANYING FRIDAY'S ARTICLE ON RETAIL SALES SHOULD HAVE SHOWED FEDERATED DEPARTMENT STORES INC WITH A 27 SALES INCREASE FOR NOVEMBER THE CHART INCORRECTLY SHOWED A 09 INCREASE TRADING SUMMARIES FOR THE NEW YORK AND AMERICAN STOCK EXCHANGES FOR THE WEEK ENDED FRI NOV 26 WERE INCORRECT BECAUSE OF MISCALCULATION BY THE ASSOCIATED PRESS THE SOURCE OF THE FIGURES CORRECTED RESULTS APPEAR TODAY ON PAGE C2 OF THE MONEY & INVESTING SECTION IN THE DIARIES PORTION OF THE STOCK MARKET DATA BANK 9312060011 931206 MARKETING & MEDIA CBS'S JAY KRIEGEL A SENIOR OFFICIAL TO LEAVE COMPANY BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JAY KRIEGEL THE CBS INC SENIOR VICE PRESIDENT WHO OVERSEES POLICY AND TECHNOLOGY ISSUES WILL LEAVE THE COMPANY AT THE END OF THE 1994 FIRSTQUARTER TO PURSUE OTHER BUSINESS OPPORTUNITIES MR KRIEGEL'S DEPARTURE HAD BEEN RUMORED FOLLOWING THE END OF A FRUSTRATING AND EMBARRASSING EPISODE FOR CBS IN OCTOBER WHEN IT FAILED TO REACH AN AGREEMENT WITH CABLE SYSTEMS TO COMPENSATE IT FOR THE USE OF CBS BROADCAST SIGNALS THE FIGHT WITH THE CABLE SYSTEMS PROVOKED INTENSE DISCORD WITHIN CBS OVER WHETHER THE COMPANY SHOULD ABANDON ITS BROADCASTONLY STRATEGY INSISTED UPON BY CHAIRMAN LAURENCE TISCH AND VENTURE INTO CABLE PROGRAMMING AS CAPITAL CITIES/ABC INC AND GENERAL ELECTRIC CO'S NBC HAVE DONE MR KRIEGEL WAS ONE OF THE KEY ARCHITECTS OF THE FEDERAL CABLE LEGISLATION ALLOWING STATIONS TO BE PAID FOR USE OF THEIR PROGRAMMING WHILE ABC AND NBC USED THE LAW TO LAUNCH NEW CABLE CHANNELS CBS FIRST INSISTED ON CASH FOR ITS SIGNALS WHICH THE CABLE SYSTEMS REFUSED TO PAY AND THEN TRIED TO FIND A CONCEPT FOR A CABLE CHANNEL WHICH CABLE SYSTEMS REFUSED TO CARRY WHEN IT BECAME APPARENT THAT CABLE SYSTEMS MIGHT DROP THE CBS STATIONS BECAUSE THEY COULDN'T REACH AN AGREEMENT CBS AGREED TO LET ITS SIGNALS BE USED FOR FREE FOR ONE YEAR MR KRIEGEL WHO IS 53 YEARS OLD AND NEWLY MARRIED SAID HE IS LEAVING BECAUSE IT IS TIME FOR A CHANGE HE SAID HE EXPECTS TO KEEP WORKING IN THE TELECOMMUNICATIONS AREA POSSIBLY AS A CONSULTANT AND HOPES TO BE INVOLVED IN SOME INTERNATIONAL WORK SINCE JOINING CBS IN 1988 MR KRIEGEL ONCE AN AIDE TO FORMER NEW YORK MAYOR JOHN LINDSAY HAS OVERSEEN THE RECRUITMENT OF A MANAGEMENT TEAM THAT TURNED THE NETWORK AROUND FROM THIRD PLACE TO FIRST HE ALSO SUPERVISED LOBBYING EFFORTS THAT RESULTED IN THE CABLE LAW AND IN THE DISMANTLING OF STRICT FEDERAL RESTRICTIONS ON THE NETWORKS' ABILITY TO OWN AND SYNDICATE THEIR OWN SHOWS MR KRIEGEL'S DUTIES ARE EXPECTED TO BE DIVIDED UP AMONG OTHER CBS EXECUTIVES MARTIN FRANKS CBS'S VICE PRESIDENT IN WASHINGTON AND THE ONE PERSON WHO REPORTED DIRECTLY TO MR KRIEGEL WILL NOW REPORT TO HOWARD STRINGER PRESIDENT OF THE CBS BROADCAST GROUP 9312060010 931206 TRADE ACCORD BY US AND EC RUNS INTO SNAGS GATT DEAL IS STILL POSSIBLE TODAY BUT PROBLEMS PERSIST ON FRENCH ISSUES BY BOB DAVIS AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL A TRADE DEAL BETWEEN THE US AND EUROPEAN COMMUNITY WHICH SEEMED TO BE WITHIN REACH LAST FRIDAY RAN INTO SOME UNEXPECTED ROADBLOCKS OVER THE WEEKEND BECAUSE OF FRENCH CONCERNS ABOUT AGRICULTURE AND OTHER ISSUES US TRADE REPRESENTATIVE MICKEY KANTOR AND EC TRADE MINISTER SIR LEON BRITTAN ARE STILL SCHEDULED TO MEET IN BRUSSELS TODAY TO COMPLETE THE DEAL BUT YESTERDAY IN GENEVA NEGOTIATORS FROM BOTH SIDES FOUND THEMSELVES AT ODDS OVER ISSUES THAT THEY ASSUMED HAD BEEN AGREED UPON THE DISAGREEMENTS BECAME SO BITTER THAT AT ONE POINT THE TWO SIDES CONSIDERED CALLING OFF TODAY'S MEETING BUT WHEN THE NEGOTIATORS FINISHED WORK AFTER MIDNIGHT LAST NIGHT IN GENEVA BOTH SIDES FELT THEY HAD MADE ENOUGH PROGRESS IN RESOLVING THEIR DIFFERENCES THAT A DEAL COULD STILL BE REACHED TODAY IN PARIS PRIME MINISTER EDOUARD BALLADUR BELIEVES THERE HAS BEEN EXCESSIVE OPTIMISM ABOUT THE PROGRESS IN THE TALKS IN RECENT DAYS A FRENCH GOVERNMENT SPOKESMAN SAID THE CHIEF OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH OVERSEES WORLD TRADE TALKS SAID IT WAS ESSENTIAL FOR THE US AND EC TO RESOLVE THEIR DIFFERENCES TODAY IF A DEAL ISN'T CUT SAID GATT DIRECTOR GENERAL PETER SUTHERLAND WE'RE IN A VERY SERIOUS CRISIS THAT COULD THREATEN THE GATT TALKS WHICH ARE UNDER A CONGRESSIONAL DEADLINE TO REACH A GLOBAL DEAL BY DEC 15 THE GATT TALKS WHICH HAVE STAGGERED ALONG FOR SEVEN YEARS HAVE BROKEN DOWN REPEATEDLY OVER A USFRENCH BATTLE ON AGRICULTURE IN TALKS LAST WEEK THOUGH THE US AND EC HAD COME TO A TENTATIVE AGREEMENT TO MODIFY AN EARLIER DEAL REQUIRING A 21 CUT IN SUBSIDIZED EC FARM EXPORTS OVER SIX YEARS THE US HAD AGREED TO A FORMULA THAT WOULD ALLOW THE EC TO MAKE SMALLER CUTS IN THE EARLIER YEARS UNDER THE MODIFIED PLAN FRANCE WOULD HAVE BEEN ABLE TO SELL ABOUT ANOTHER EIGHT MILLION TONS OF SUBSIDIZED WHEAT OVER THE SIXYEAR PERIOD IN EXCHANGE THE US WOULD GET GREATER ACCESS TO EUROPEAN AGRICULTURAL MARKETS IT WASN'T CLEAR HOWEVER EXACTLY WHAT THAT ACCESS WOULD ENTAIL APART FROM AGRICULTURE THE BIGGEST ISSUE DIVIDING THE US AND THE EC CONCERNS MOVIES AND HOME VIDEOS FOR YEARS THE MOVIE INDUSTRY HAS CRITICIZED EUROPE'S QUOTA SYSTEM WHICH LIMITS HOLLYWOOD'S MARKET SHARE PARTICULARLY IN FRANCE THERE 60 OF TELEVISION PROGRAMMING MUST BE MADE IN EUROPE AND BOXOFFICE TAXES ON US FILMS ARE USED TO SUBSIDIZE THE FRENCH FILM INDUSTRY THE MOVIE INDUSTRY IS AMONG THE MOST IMPORTANT CONTRIBUTORS TO THE DEMOCRATIC PARTY AND THE CLINTON ADMINISTRATION HAS MADE ITS TRADE COMPLAINTS A TOP PRIORITY THE US IS PRESSING FOR A DEAL THAT WOULD LIMIT TAXES ON U S FILMS AND GUARANTEE ACCESS TO NEW SATELLITE AND CABLE STATIONS IN EUROPE BUT IT'S FAR FROM CLEAR THAT THE FRENCH GOVERNMENT WHICH CONSIDERS HOLLYWOOD THE ADVANCE TROOPS OF US CULTURAL IMPERIALISM WILL GO ALONG STILL THE US AND EC HAVE MADE PROGRESS ON OTHER FRONTS THE TWO SIDES AGREED TO PUT ASIDE A BITTER FIGHT OVER STEEL WHICH HAD THREATENED TO HOLD UP THE NEGOTIATIONS UNDER THAT PLAN THE EC WOULD CONTINUE TO PRESS IN THE COURTS OR GATT TO OVERTURN US DECISIONS HOLDING EUROPEAN STEEL COMPANIES IN VIOLATION OF US UNFAIRSUBSIDY AND DUMPING LAWS BUT THE EUROPEANS WOULDN'T DEMAND THAT THOSE ISSUES BE RESOLVED BY DEC 15 WITH THE DEAL THE US AND EUROPE WOULD PRESS OTHER TRADING PARTNERS TO ELIMINATE TARIFFS ON STEEL IN ADDITION US NEGOTIATORS SAID THEY HAD WON EC APPROVAL FOR TARIFF CUTS IN TEXTILES OF SUBSTANTIALLY LESS THAN THE 50 REDUCTION THAT THE BUSH ADMINISTRATION HAD BEEN WILLING TO MAKE THE US WAS ALSO PRESSING THE EC TO HALVE ITS TARIFFS ON SEMICONDUCTORS FROM 14 BUT IT WASN'T CLEAR WHETHER THE EC WOULD GO THAT FAR IF THE US AND EC ARE ABLE TO STRIKE A DEAL THEY WOULD TRY TO SELL THE PACKAGE FIRST TO JAPAN AND THEN TO THE OTHER 102 NATIONS IN THE GATT DURING THE NEXT 10 DAYS UNDER NEGOTIATING AUTHORITY GRANTED BY CONGRESS THE US MUST DECLARE THAT IT IS READY TO ENTER INTO A TRADE PACT BY DEC 15 BUT THE CLINTON ADMINISTRATION DOESN'T HAVE TO COMPLETE EACH PORTION OF THE DEAL INDEED WITH CONGRESS OUT OF SESSION UNTIL THE END OF JANUARY IT'S CLEAR THAT NEGOTIATORS WOULD CONTINUE TO WORK OUT DETAILS WELL PAST THE DEADLINE NEVERTHELESS NEGOTIATORS MUST STRIKE THE BASIC POLITICAL COMPROMISES BY DEC 15 IN ORDER FOR THE PACKAGE TO GO FORWARD IN CONGRESS UNDER SOCALLED FASTTRACK PROCEDURES UNDER FASTTRACK CONGRESS CAN VOTE YES OR NO ON A TRADE PACT BUT CAN'T MAKE CHANGES WITHOUT SUCH AUTHORITY US BARGAINERS WOULDN'T BE ABLE TO NEGOTIATE TRADE DEALS BECAUSE TRADING PARTNERS KNOW CONGRESS WOULD BE ABLE TO REWRITE BIG CHUNKS OF AN ACCORD THE US HAS BEEN EMPHASIZING TARIFF REDUCTIONS IN THE GATT TALKS WITH THEIR OBVIOUS BENEFITS FOR COMPANIES AS A WAY TO BUILD SUPPORT FOR THE ACCORD IN CONGRESS WHILE MOST LAWMAKERS HAVE YET TO FOCUS ON THE TRADE DEAL A NUMBER OF BIG COMPANIES HAVE BECOME CONCERNED THAT THE GATT PACKAGE WOULD OVERRIDE US TRADE LAWS INCLUDING DUMPING STATUTES DESIGNED TO KEEP OUT IMPORTS DEEMED TO BE UNFAIRLY PRICED LAWMAKERS WOULD QUICKLY PICK UP ON THOSE FEARS CLINTON TRADE OFFICIALS REALIZE THE CHALLENGE FOR THE ADMINISTRATION ISN'T WHO'S AGAINST A GATT DEAL BUT WHO'S FOR IT SAID ALAN WOLFF WHO REPRESENTS SEMICONDUCTOR AND STEEL COMPANIES AND HAS RALLIED CORPORATE LOBBYISTS TO RAISE THE SOVEREIGNTY QUESTION WHILE COMPANIES MAY BE RELUCTANT TO OPPOSE THE ADMINISTRATION ON A TRADELIBERALIZATION PACT THEY MAY WELL SIT ON THE SIDE AS CONSUMER ENVIRONMENTAL AND LABOR GROUPS CAMPAIGN AGAINST THE ACCORD TO TRY TO HEAD OFF OPPOSITION THE US HAS BEEN TRYING TO ENLIST EUROPE IN ITS CALL TO REWRITE PARTS OF A DRAFT GATT ACCORD THAT WOULD RESTRICT DUMPING PROVISIONS