OSAKA JAPAN SUNTORY LTD WILL WITHDRAW FROM BEERSALES OPERATIONS OVERSEAS BECAUSE OF DECLINING PROFITABILITY RESULTING FROM THE YEN'S APPRECIATION COMPANY OFFICIALS SAID SUNTORY JAPAN'S TOP WHISKEY MAKER IS THE FIRST JAPANESE BREWER TO WITHDRAW FROM THE OVERSEAS BEER MARKET BUT INDUSTRY EXECUTIVES SAID OTHER MAKERS MAY FOLLOW SUIT AS THEY RESTRUCTURE OPERATIONS TO OVERCOME THE RECESSION SUNTORY BEGAN EXPORTING BEER TO THE US AND EUROPE AROUND 1983 THE COMPANY SIGNED A LICENSE AGREEMENT WITH A CANADIAN BREWER FOR THE MANUFACTURE OF ITS BRANDS FOR EXPORT TO THE US THE COMPANY'S BEER SALES OVERSEAS HOWEVER DROPPED BELOW THE PROFITABLE LINE OF ONE MILLION CASES IN 1992 THE OFFICIALS SAID 9312060007 931206 BRITISH AIR'S TRAFFIC RISES LONDON BRITISH AIRWAYS PLC SAID ITS PASSENGER TRAFFIC WAS UP 92 IN NOVEMBER FROM A YEAR EARLIER NOVEMBER TRAFFIC ROSE TO 371 BILLION REVENUE PASSENGER MILES FROM 339 BILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR THE PERCENTAGE OF AVAILABLE SEATS FILLED EDGED DOWN TO 643 FROM 645 9312060006 931206 NOLAND NOVEMBER SALE ROSE NEWPORT NEWS VA NOLAND CO SAID NOVEMBER SALES GREW 57 TO 332 MILLION FROM 314 MILLION A YEAR EARLIER THE WHOLESALE DISTRIBUTOR OF PLUMBING HEATING AND OTHER INDUSTRIAL PRODUCTS SAID SALES FOR THE FIRST 11 MONTHS OF 1993 ROSE 26 TO 3792 MILLION FROM 3692 MILLION 9312060005 931206 ONTARIO CHOOSES CAESARS CIRCUS CIRCUS HILTON TO BUILD RUN WINDSOR CASINO BY SUZANNE MCGEE AND PAULINE YOSHIHASHI STAFF REPORTERS OF THE WALL STREET JOURNAL A CONSORTIUM OF THREE US GAMBLING AND HOSPITALITY CONCERNS HAS WON THE RIGHT TO BUILD AND OPERATE THE PROVINCE OF ONTARIO'S FIRST CASINO A 300MILLION PROJECT DESTINED FOR THE RECESSIONSTRICKEN BORDER COMMUNITY OF WINDSOR ONTARIO THE ONTARIO GOVERNMENT CHOSE A GROUP COMPOSED OF CAESARS WORLD INC CIRCUS CIRCUS ENTERPRISES INC AND HILTON HOTELS CORP TO CONSTRUCT THE PROJECT SUBJECT TO REACHING A FINAL CONTRACT THE DECISION GIVES THE VICTORS A FOOT IN THE DOOR OF THE CANADIANGAMING MARKET AT A TIME WHEN THE US INDUSTRY IS HUNTING FOR EXPANSION OPPORTUNITIES ABROAD TO DATE ONLY THREE COMMERCIAL CASINOS OPERATE IN CANADA WHILE SOME PROVINCES STILL BAN ANYTHING OTHER THAN BINGO GAMES AND SIMILIAR ACTIVITIES FOR CHARITY BUT TIMES ARE CHANGING AS PROVINCIAL GOVERNMENTS MUST COME TO GRIPS WITH RISING COSTS AND PLUMMETING TAX REVENUES LEGALIZED GAMBLING IS EMERGING FOR SOME AS AN ATTRACTIVE WAY OF IMPROVING FINANCES ALREADY VENDORS OF GAMBLING EQUIPMENT SUCH AS VIDEOLOTTERY TERMINALS ARE FINDING CANADA TO BE A GROWTH MARKET WHILE ONTARIO HAS NO IMMEDIATE PLANS TO LAUNCH ADDITIONAL CASINOS A STUDY PREPARED FOR THE PROVINCIAL GOVERNMENT SAID THAT AS MANY AS SIX MORE GAMING FACILITIES COULD BE BUILT IN MAJOR CITIES AND BORDER COMMUNITIES STRATEGICALLY AND PSYCHOLOGICALLY THE DECISION IS IMPORTANT BECAUSE IT POSITIONS THE COMPANIES FOR POSSIBLE FUTURE EXPANSION IN CANADA AND SHOWS THAT THEY'RE WILLING TO BECOME GLOBAL GAMBLING COMPANIES SAID DENNIS FORST AN ANALYST WITH HANCOCK INSTITUTIONAL EQUITY SERVICES DETAILS OF THE CASINO REMAIN SKETCHY AHEAD OF A PRESS CONFERENCE SCHEDULED FOR TODAY BUT THE 75000SQUAREFOOT FACILITY IS EXPECTED TO COST THE PARTNERS ABOUT 300 MILLION TO BUILD AND COULD GENERATE A MINIMUM OF 300 MILLION IN REVENUE ANNUALLY FROM ITS 2000 SLOT MACHINES AND 125 TABLE GAMES THIS IS A GREAT LOCATION BECAUSE THEY CAN DRAW ON ABOUT FIVE MILLION PEOPLE IN THE IMMEDIATE MARKET AREA SAID WILLARD BROWN SENIOR VICEPRESIDENT OF DEAN WITTER IN BOSTON ABOUT 80 OF THE CASINO'S PATRONS ARE EXPECTED TO COME FROM THE US INCLUDING THE CITY OF DETROIT JUST ACROSS THE ST CLAIR RIVER FROM WINDSOR THE WINNING BIDDERS ARE EXPECTED TO HAVE THE WINDSOR CASINO UP AND RUNNING BY JANUARY 1996 IN THE MEANTIME CITY OFFICIALS HAVE TURNED OVER THE BUILDING THAT USED TO HOUSE WINDSOR'S ART GALLERY TO SERVE AS A HOME FOR A 40000 SQUARE FOOT INTERIM CASINO SET TO OPEN NEXT APRIL ANALYSTS DESCRIBE THE CASINO AS A SIGNIFICANT VENTURE ALTHOUGH SMALLER THAN THE TAJ MAHAL CASINO IN ATLANTIC CITY NJ WITH STRONG POTENTIAL REVENUES NOT ONLY FROM GAMBLING ITSELF BUT FROM THE HOTEL WHICH WILL FORM A PART OF THE PROJECT NO OTHER CASINOS WILL BE BUILT IN THE VICINITY OF WINDSOR ON THE CANADIAN SIDE OF THE BORDER ALTHOUGH THERE HAS LONG BEEN TALK OF ESTABLISHING A GAMBLING FACILITY IN DETROIT TO TAP THE SAME MARKET ONE OF THE MOST ATTRACTIVE IN NORTH AMERICA THE VENTURE IS DIFFERENT FROM US CASINOS IN SEVERAL WAYS THE ONTARIO GOVERNMENT WILL RETAIN OWNERSHIP OF THE PROJECT GIVING THE CONSORTIUM THE CONSTRUCTION CONTRACT AND A MANAGEMENT FEE ALSO SOME CONSTRAINTS WILL BE IMPOSED ON THE WAY THE ESTABLISHMENT OPERATES FOR INSTANCE ONTARIO LAWS DON'T ALLOW PATRONS TO DRINK AT THE GAMING TABLES INVESTORS REACTED STRONGLY TO THE NEWS DRIVING SHARES OF ALL THREE SUCCESSFUL BIDDERS HIGHER AFTER THE ANNOUNCEMENT WAS MADE IN NEW YORK STOCK EXCHANGE TRADING FRIDAY CAESARS STOCK ENDED AT 5275 A SHARE UP 3375 WHILE HILTON SAW ITS SHARE PRICE JUMP TO 50875 A SHARE UP 375 CIRCUS CIRCUS SHARES ENDED THE DAY AT 37875 A SHARE UP 150 OSCAR SURIS IN DETROIT CONTRIBUTED TO THIS ARTICLE 9312060004 931206 DUTCH NEWCAR REGISTRATIONS ACCORDING TO THE CENTRAL BUREAU OF STATISTICS NEWCAR REGISTRATIONS ROSE TO 36141 IN OCTOBER FROM 30321 IN SEPTEMBER THE TOTAL IN OCTOBER 1992 WAS 36754 THE BUREAU ALSO SAID ACTUAL SALES OF NEW CARS IN SEPTEMBER ROSE NEARLY 12 IN PRICEADJUSTED TERMS FROM AUGUST EVEN THOUGH THEY WERE DOWN 31 FROM SEPTEMBER 1992 JANUARYSEPTEMBER CAR SALES WERE 68 LOWER IN PRICEADJUSTED TERMS COMPARED WITH THE LIKE PERIOD IN 1992 9312060003 931206 ROBERN HOLDERS APPROVE NAME NEW YORK ROBERN INDUSTRIES INC SAID SHAREHOLDERS APPROVED A CHANGE IN THE COMPANY'S NAME TO WINSTAR COMMUNICATIONS INC THE COMPANY THROUGH ITS TWO DIVISIONS PROVIDES LONGDISTANCE PHONE SERVICE TO US CUSTOMERS AND SELLS BEAUTY AND SPORTS PRODUCTS THE CHANGE REFLECTS THE COMPANY'S PLAN TO EXPAND ITS COMMUNICATIONS BUSINESS IN OCTOBER THE COMPANY CHANGED ITS NASDAQ STOCK MARKET SYMBOL TO WCII IN ANTICIPATION OF SHAREHOLDER APPROVAL OF THE NEW NAME 9312060002 931206 MARKETING & MEDIA BARRON'S ANNUAL PRICE WILL RISE TO 129 IN '94 NEW YORK DOW JONES & CO SAID THE ANNUAL SUBSCRIPTION PRICE FOR BARRON'S NATIONAL BUSINESS AND FINANCIAL WEEKLY WILL RISE TO 129 FROM 119 EFFECTIVE JAN 3 1994 THE NEWSSTAND PRICE WILL REMAIN 250 A COPY THE ANNUAL SUBSCRIPTION PRICE OF BARRON'S WAS LAST RAISED IN JANUARY 1993 THE NEWSSTAND PRICE HAS BEEN THE SAME SINCE LATE 1990 DOW JONES ALSO PUBLISHES THE WALL STREET JOURNAL AND OTHER BUSINESS PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS 9312060001 931206 BUSINESS BRIEF SNYDER OIL CORP CHARGE OF 11 MILLION SET FOR EARLY DEBT REDEMPTION SNYDER OIL CORP SAID IT PLANS TO TAKE A CHARGE OF 11 MILLION OR FIVE CENTS A COMMON SHARE IN THE FOURTH QUARTER FOR THE RECENT EARLY REDEMPTION OF SUBORDINATED DEBT IN THE 1992 FOURTH QUARTER THE FORT WORTH TEXAS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY HAD NET INCOME OF 48 MILLION OR 21 CENTS A SHARE ON REVENUE OF 35 MILLION 9312030188 931203 BUSINESS BRIEF BIOCRAFT LABORATORIES INC INVESTOR SUIT CLAIMS FIRM FAILED TO REVEAL DEFICIENCIES A FLORIDA INVESTOR SUED BIOCRAFT LABORATORIES INC A GENERIC DRUG MAKER CHARGING THE COMPANY FAILED TO DISCLOSE MANUFACTURING DEFICIENCIES BEFORE ACTION BY THE FOOD AND DRUG ADMINISTRATION IN A LAWSUIT FILED IN FEDERAL COURT IN NEWARK NJ HAROLD DIETRICHSON ALLEGED THAT BIOCRAFT OFFICIALS KNEW ITS PHARMACEUTICAL PRODUCTS DIDN'T COMPLY WITH THE MANUFACTURING PRACTICES RULES BEFORE THE FDA ISSUED AN INSPECTION REPORT LAST MONTH DISCUSSING MANUFACTURING DEFICIENCIES THE SUIT ALSO ALLEGES THAT AFTER THE FDA ANNOUNCEMENT THE COMPANY CONTINUED TO ISSUE MISLEADING STATEMENTS THE COMPANY CALLED THE CHARGES COMPLETELY UNFOUNDED AND SAID IT WILL DEFEND THIS MATTER VIGOROUSLY A SPOKESWOMAN FOR THE LAW FIRM REPRESENTING MR DIETRICHSON SAID THREE OTHER PLAINTIFFS HAVE FILED SIMILAR COMPLAINTS AGAINST BIOCRAFT 9312030187 931203 INDIA'S EXPORTS KEEP SURGING NARROWING TRADE GAP SHARPLY NEW DELHI INDIA'S EXPORTS ARE CONTINUING TO SURGE THOUGH AT A SLIGHTLY SLOWER RATE THAN A FEW MONTHS AGO THE GROWTH COMBINED WITH STAGNANT IMPORTS HAS NARROWED THE COUNTRY'S TRADE DEFICIT DRASTICALLY PROVISIONAL DATA RELEASED BY THE GOVERNMENT SHOW THAT INDIA'S TRADE DEFICIT CONTRACTED TO 569 MILLION IN THE FIRST SEVEN MONTHS OF THE FISCAL YEAR WHICH BEGAN APRIL 1 FROM 272 BILLION A YEAR EARLIER EXPORTS ROSE 20 TO 1213 BILLION FROM APRIL THROUGH OCTOBER COMPARED WITH 1009 BILLION A YEAR EARLIER THAT PUTS GROWTH ABOVE THE YEAR'S TARGET OF 15 BUT BELOW THE 27 GROWTH ACHIEVED IN THE FISCAL FIRST QUARTER OFFICIALS ATTRIBUTE THE SLOWDOWN TO A NATIONWIDE TRANSPORT STRIKE IN SEPTEMBER AND THE BOMBAYBASED CENTRE FOR MONITORING THE INDIAN ECONOMY ESTIMATES THE FISCAL YEAR WILL END WITH 17 GROWTH IN EXPORTS MEANWHILE IMPORTS FROM APRIL THROUGH OCTOBER EDGED DOWN 09 TO 127 BILLION FROM 1282 BILLION A YEAR EARLIER OFFICIALS SAID THAT THE DROP RESULTED PARTLY FROM DECLINING PETROLEUM PRICES BUT THAT IT'S WORRYING BECAUSE IT ALSO REFLECTS SLUGGISH DEMAND CAUSED BY THE SLOW GROWTH OF DOMESTIC INDUSTRIAL PRODUCTION 9312030186 931203 BUSINESS BRIEF GENERAL ELECTRIC CO CREDITCARD RECEIVABLES OF EXXON TO BE ACQUIRED GE CAPITAL CORP THE FINANCIALSERVICES ARM OF GENERAL ELECTRIC CO SAID IT AGREED TO PURCHASE EXXON CORP'S CREDITCARD RECEIVABLES AND OPERATE THE CREDITCARD BUSINESS ONE OF THE LARGEST IN THE PETROLEUM INDUSTRY TERMS WEREN'T DISCLOSED NOR WAS THE SIZE OF THE PORTFOLIO BUT INDUSTRY NEWSLETTER CREDIT CARD NEWS ESTIMATES THAT AT THE END OF 1992 EXXON HAD 72 MILLION ACCOUNTS AND HAD ISSUED 13 MILLION CARDS CHARGE VOLUME WAS ESTIMATED AT 247 BILLION RECEIVABLES ARE TYPICALLY LOWER THOUGH THE NEWSLETTER DOESN'T ESTIMATE THEM EXXON IRVING TEXAS SAID IT WOULD TRANSFER CREDITCARD ISSUING BILLING AND COLLECTION TO GE CAPITAL WHICH IT SAID HAS BETTER SYSTEMS TO RUN THE BUSINESS THE SALE IS EXPECTED TO BE COMPLETED BY THE THIRD QUARTER OF 1994 GE IS BASED IN FAIRFIELD CONN 9312030185 931203 HILO AUTOMOTIVE SALES ROSE HOUSTON HILO AUTOMOTIVE INC SAID ITS NOVEMBER SAMESTORE SALES INCREASED 21 FROM A YEAR EARLIER THE AUTOPARTS RETAILER'S TOTAL SALES ROSE 12 TO 162 MILLION FROM 145 MILLION 9312030184 931203 BUSINESS BRIEF PLACER DOME INC PLAN IS SET TO SELL OFF STAKE THAT MERGER MIGHT PRODUCE PLACER DOME INC SAID IT PLANS TO SELL TO UNDERWRITERS THE 16 STAKE IN PRIME RESOURCES GROUP INC THAT IT WOULD RECEIVE UNDER A PROPOSED MERGER OF PRIME AND STIKINE RESOURCES LTD PRIME AND STIKINE TOGETHER OWN THE ESKAY CREEK GOLD AND SILVER PROJECT PLACER SAID IT WOULD RECEIVE 92 MILLION CANADIAN DOLLARS US69 MILLION IN THE TRANSACTION PLACER CURRENTLY HOLDS AN INTEREST IN ESKAY CREEK A MAJOR PROJECT IN BRITISH COLUMBIA THROUGH ITS 44 STAKE IN STIKINE ALL THREE COMPANIES ARE CANADIAN MINING CONCERNS LAST MONTH PLACER AGREED TO TENDER ITS STAKE IN STIKINE TO PRIME WHICH PLANS TO ISSUE SHARES FOR ALL STIKINE SHARES THAT OFFER MUST BE APPROVED BY PRIME SHAREHOLDERS AT A MEETING DEC 14 PLACER SAID IT WILL RECORD A SUBSTANTIAL GAIN FROM THE SALE THE PURCHASING UNDERWRITERS ARE BUNTING WARBURG INC AND RBC DOMINION SECURITIES INC 9312030183 931203 US SHOE REPORTS STRONGER SALES CINCINNATI US SHOE CORP REPORTING A SECOND MONTH OF STRONGER SALES MOMENTUM SAID SAMESTORE SALES ROSE NEARLY 10 FOR THE FOUR WEEKS ENDED NOV 27 SALES OF US SHOE'S RETAILING OPERATIONS WERE 1898 MILLION ON 2284 STORES COMPARED WITH 1793 MILLION A YEAR AGO ON A STORE BASE OF 2479 US SHOE REPORTED AN 8 INCREASE IN SALES FOR ITS WOMEN'S APPAREL GROUP SALES FROM US SHOE'S LENSCRAFTERS UNIT ROSE 4 WHILE FOOTWARE DECREASED 1 9312030182 931203 CHRYSLER RAISES QUARTERLY PAYOUT 33 HAVING SHED JUNKGRADE CREDIT RATING BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP REFLECTING ITS STRONG EARNINGS AND IMPROVED CREDIT RATING BOOSTED ITS QUARTERLY DIVIDEND BY 33 TO 20 CENTS A SHARE THE MOVE WAS WIDELY EXPECTED ON WALL STREET AND HAD LITTLE APPARENT EFFECT ON CHRYSLER'S STOCK PRICE YESTERDAY CHRYSLER SHARES WERE QUOTED AT 5350 DOWN 50 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE IN MAY CHRYSLER CHAIRMAN ROBERT J EATON SAID AN INCREASE IN THE DIVIDEND WAS UNLIKELY UNTIL CHRYSLER DUMPED ITS JUNKGRADE CREDIT RATING CHRYSLER CLEARED THIS HURDLE IN SEPTEMBER AND OCTOBER WHEN THE TWO BIGGEST DEBT RATING AGENCIES RAISED CHRYSLER'S RATING TO INVESTMENT GRADE CHRYSLER FOR MANY YEARS THE SHAKIEST OF THE BIG THREE US AUTO MAKERS HAS EMERGED AS DETROIT'S STAR PERFORMER THIS YEAR FOR THE THIRD QUARTER CHRYSLER REPORTED A PROFIT OF 423 MILLION OR 113 A SHARE MORE THAN DOUBLE LAST YEAR'S THIRDQUARTER EARNINGS OF 202 MILLION OR 62 CENTS A SHARE REVENUE ROSE 54 TO 971 BILLION FROM 922 BILLION ANALYST JOHN CASESA OF WERTHEIM SCHRODER & CO PREDICTED THAT CHRYSLER WILL BOOST ITS PAYOUT REPEATEDLY IN COMING YEARS THERE WILL BE SEVERAL MORE OF THESE HE SAID RONALD GLANTZ OF DEAN WITTER REYNOLDS SEES ANOTHER DIVIDEND INCREASE COMING AS SOON AS THE FOURTH QUARTER OF NEXT YEAR HOWEVER MR EATON WHO HAS VOWED TO BUILD UP A 75 BILLION CASH CUSHION BEFORE THE NEXT DOWNTURN IN THE AUTO MARKET WAS MORE CIRCUMSPECT OUR STRONG PERFORMANCE IS NO REASON FOR US TO GET COMPLACENT HE SAID IN A STATEMENT ANNOUNCING THE DIVIDEND INCREASE THE FOURTHQUARTER DIVIDEND OF 20 CENTS A SHARE UP FROM 15 CENTS IN THE THIRD QUARTER WILL BE PAYABLE JAN 15 TO SHAREHOLDERS OF RECORD DEC 15 CHRYSLER'S DIVIDEND HAD BEEN AT 15 CENTS SINCE THE SECOND QUARTER OF 1991 WHEN CHRYSLER SLASHED IT FROM 30 CENTS A SHARE DURING A NASTY DOWNTURN IN THE AUTO MARKET DURING CHRYSLER'S BRUSH WITH BANKRUPTCY IN THE LATE 1970S AND EARLY 1980S THE COMPANY STOPPED PAYING A DIVIDEND FOR NEARLY FIVE YEARS 9312030181 931203 WESTINGHOUSE GETS KUWAIT JOBS PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT RECEIVED TWO CONTRACTS VALUED AT 42 MILLION FROM KUWAIT TO REBUILD THREE SUBSTATIONS THAT WERE DAMAGED DURING THE IRAQI OCCUPATION THE COMPANY SAID THE WORK WILL REQUIRE TWO YEARS TO COMPLETE 9312030180 931203 WHO'S NEWS SHAWMUT REVAMPS MORTGAGE UNIT PUTS JOHN DUNN IN CHARGE OF RUNNING IT BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL SHAWMUT NATIONAL CORP IS REORGANIZING ITS MORTGAGE UNIT FOLLOWING A FEDERAL RESERVE BOARD DETERMINATION THAT THE BANK FAILED TO MEET ITS OBLIGATIONS UNDER THE FAIRLENDING LAWS SHAWMUT CONFIRMED THAT EXECUTIVE VICE PRESIDENT JOHN DUNN WHO FORMERLY RAN THE BANK'S BRANCH SYSTEM TOOK OVER MANAGEMENT OF SHAWMUT MORTGAGE EARLIER THIS WEEK TAKING THE OFFICE FORMERLY OCCUPIED BY DONALD GRIGLEY PRESIDENT OF THE MORTGAGE UNIT IN ADDITION SHAWMUT IS EXPECTED TO REVAMP SOON ITS CORPORATE STRUCTURE SO THAT THE MORTGAGE COMPANY WILL BECOME A SUBSIDIARY OF ONE OF ITS BANKS RATHER THAN A UNIT OF ITS HOLDING COMPANY THE FEDERAL RESERVE HAS REQUESTED THIS CHANGE WHICH ESTABLISHES MORE DIRECT FEDERAL BANKREGULATORY AUTHORITY OVER THE MORTGAGE OPERATION SHAWMUT OFFICIALS SAID EFFECTIVE MANAGEMENT RESPONSIBILITY FOR SHAWMUT MORTGAGE WAS QUIETLY GIVEN TO MR DUNN AFTER THE FED'S DECISION LAST MONTH WHICH RESULTED IN A DENIAL OF THE BANK'S APPLICATION TO ACQUIRE NEW DARTMOUTH BANK OF MANCHESTER NH THREE EXECUTIVES OF SHAWMUT MORTGAGE ALSO RESIGNED AFTER THE FED DURING THE NEW DARTMOUTH REVIEW QUESTIONED THE ACCURACY OF FAIRLENDING DISCLOSURES THAT THE THREE HAD A ROLE IN PREPARING THE MOVES BY SHAWMUT WHICH IS BASED IN HARTFORD CONN ARE PART OF AN EFFORT TO SATISFY THE FED AND GET EVENTUAL APPROVAL FOR THE NEW DARTMOUTH BID ALTHOUGH A SHAWMUT SPOKESMAN SAID MR GRIGLEY REMAINS PRESIDENT OF SHAWMUT MORTGAGE BANK OFFICIALS WHO SPOKE ON CONDITION OF ANONYMITY SAID MR DUNN IS BEING REFERRED TO INTERNALLY AS PRESIDENT DOESN'T REPORT TO MR GRIGLEY AND OCCUPIED MR GRIGLEY'S OFFICE AT SHAWMUT MORTGAGE IN WEST HARTFORD LAST MONDAY MR GRIGLEY CONTINUES TO HAVE MANAGEMENT RESPONSIBILITY FOR OTHER ASPECTS OF CONSUMER LENDING DON GRIGLEY IS PRESIDENT AND CHIEF EXECUTIVE OF THE MORTGAGE COMPANY A SHAWMUT SPOKESMAN SAID JOHN DUNN HAS BEEN BROUGHT IN TO RUN IT MR GRIGLEY WHO IS ON VACATION AND MR DUNN COULDN'T BE REACHED FOR COMMENT THE SPOKESMAN ADDED THAT SHAWMUT WAS HAPPY WITH MR GRIGLEY'S PERFORMANCE AT THE MORTGAGE COMPANY AND SAID HE WASN'T BEING HELD RESPONSIBLE FOR ANY SHORTCOMINGS NOTED BY THE FED IN THE NEW DARTMOUTH APPLICATION HE CONFIRMED THAT MR DUNN TOOK MR GRIGLEY'S OFFICE AND SAID SHAWMUT HASN'T DETERMINED TO WHOM MR DUNN WILL REPORT IN HIS NEW ROLE OBVIOUSLY THE MORTGAGE COMPANY IS STILL A DYNAMIC SITUATION AND THERE COULD BE MORE CHANGES THE SPOKESMAN SAID THERE'S A FEELING THAT IT NEEDS MORE ATTENTION AND NEW RESOURCES TO GUIDE IT HE SAID MR DUNN HAS ASSUMED THE DAYTODAY MANAGEMENT RESPONSIBILITIES OF JOHN BRADY WHO WAS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF SHAWMUT MORTGAGE UNTIL HE RESIGNED LAST MONTH THE SPOKESMAN SAID TWO OTHER SHAWMUT MORTGAGE OFFICIALS ALSO RESIGNED AT THE TIME AND DECLINED TO COMMENT ON THE REASONS FOR THE RESIGNATIONS OR WHETHER THEY WERE ASKED TO RESIGN THE THREE OFFICIALS HELPED SUPPLY THE RAW DATA USED TO FILE SHAWMUT'S STATEMENTS UNDER THE HOME MORTGAGE DISCOSURE ACT WHOSE ACCURACY WAS FAULTED BY THE FED MR BRADY DENIED THAT HIS RESIGNATION WAS CONNECTED WITH THE FED'S OBJECTIONS AND SAID I LEFT THE BANK FOR REASONS OF MY OWN SEPARATELY SHAWMUT BAYBANKS INC AND EIGHT SMALLER BANKS YESTERDAY REACHED A SETTLEMENT WITH THE MASSACHUSETTS ATTORNEY GENERAL TO SETTLE THE STATE'S PROBE OF POSSIBLE DISCRIMINATORY LENDING PRACTICES THE BANKS AGREED TO NEW PRACTICES THAT COULD INCREASE THEIR LENDING IN LOWINCOME AREAS AND TO MAKE AS MUCH AS 2 MILLION IN RESTITUTION FOR 130 MINORITY APPLICANTS WHO WERE DENIED MORTGAGES IN 1990 THE APPLICANTS' DENIALS WERE UNEARTHED IN A STUDY BY THE FEDERAL RESERVE IN BOSTON 9312030179 931203 BETHLEHEM STEEL UNIT CONTRACT SPARROWS POINT MD BETHLEHEM STEEL CORP'S BETHSHIP UNIT WAS AWARDED A 337 MILLIONPLUS CONTRACT BY THE US MARITIME ADMINISTRATION FOR WORK ON THREE VESSELS ACQUIRED TO UPGRADE ITS READY RESERVE FLEET SAID DAVID WATSON PRESIDENT OF THE SHIPYARD 9312030178 931203 FINLAND PLANS MOVES TO AID EMPLOYMENT STIMULATE ECONOMY HELSINKI FINLAND AP THE FINNISH GOVERNMENT ANNOUNCED MEASURES AIMED AT CUTTING UNEMPLOYMENT AND STIMULATING THE ECONOMY AMID THE COUNTRY'S WORST RECESSION THIS CENTURY THE PACKAGE INCLUDES A 2 CUT IN INCOME TAX HIGHER WELFARE BENEFITS AND A REDUCTION IN SOCIALSECURITY PAYMENTS FOR SMALL AND MIDSIZE COMPANIES NEXT YEAR THE MAIN PROBLEM IN OUR ECONOMY IS UNEMPLOYMENT PRIME MINISTER ESKO AHO SAID AT A NEWS CONFERENCE THIS PACKAGE IS AIMED AT ENCOURAGING DEMAND AND INCREASING EMPLOYMENT PLANNED INCREASES IN NEXT YEAR'S TAXES WILL BE PARTLY REDUCED AND BENEFITS PAID TO FAMILIES WITH CHILDREN WILL BE INCREASED OTHER DETAILS WILL BE DECIDED LATER THE MEASURES WILL INCREASE NEXT YEAR'S BUDGET BY 23 BILLION MARKKAA 394 BILLION WHICH MEANS THE GOVERNMENT WILL HAVE TO BORROW MORE SAID FINANCE MINISTER IIRO VIINANEN ON THE WHOLE THE EFFECTS OF THIS PACKAGE WILL BE MORE POSITIVE THAN THE FEW BILLION EXTRA WE HAVE TO BORROW FINLAND'S FOREIGN DEBT STANDS AT A RECORD 263 BILLION MARKKAA AND UNEMPLOYMENT PEAKED AT 203 IN OCTOBER THE GOVERNMENT ALSO PLANS TO EXTEND SALES TAX TO SERVICES INCLUDING PUBLIC TRANSPORT HOTELS MEDICINES AND MOVIE TICKETS THE NEW 12 TAX WILL COME INTO EFFECT IN JUNE 9312030177 931203 WHO'S NEWS BEN FRANKLIN RETAIL STORES INC BEN FRANKLIN RETAIL STORES INC CAROL STREAM ILL JOHN B MENZER 42 YEARS OLD EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER WAS NAMED PRESIDENT OF THIS FRANCHISER OF VARIETY AND CRAFT STORES MR MENZER WHO CONTINUES AS CHIEF OPERATING OFFICER SUCCEEDS DALE D WARD 43 WHO RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AND AS A DIRECTOR DAVID A BRAINARD 35 FORMERLY VICE PRESIDENT ACCOUNTING AND FINANCE WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SUCCEEDING MR MENZER 9312030176 931203 DANISH JOBLESS RATE DROPS COPENHAGEN DENMARK'S OCTOBER UNEMPLOYMENT RATE FELL TO 124 OF THE WORK FORCE FROM 125 THE MONTH BEFORE THE DANISH NATIONAL STATISTICS AGENCY SAID THAT THE SEASONALLY ADJUSTED FIGURE OF UNEMPLOYMENT WAS 347200 COMPARED WITH 349300 IN SEPTEMBER 9312030175 931203 SULLIVAN TO LEAD PARTNERSHIP NEW YORK BARRY F SULLIVAN WAS NAMED PRESIDENT OF THE NEW YORK CITY PARTNERSHIP AND CHAMBER OF COMMERCE AND INDUSTRY MR SULLIVAN 62 YEARS OLD IS THE CITY'S DEPUTY MAYOR FOR FINANCE AND ECONOMIC DEVELOPMENT AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OF BANKING COMPANY FIRST CHICAGO CORP HE SUCCEEDS RONALD K SHELP WHO RESIGNED LAST MONTH TO RESUME HIS BUSINESS CAREER PARTNERSHIP ACTIVITIES INCLUDE A SUMMER JOBS PROGRAM A HOUSING PARTNERSHIP A CAMPAIGN AGAINST DRUGS IN THE WORKPLACE AND A PROGRAM TO PREPARE SENIOR BUSINESS EXECUTIVES FOR COMMUNITY LEADERSHIP ROLES 9312030174 931203 MEN'S WEARHOUSE SALES JUMP FREMONT CALIF MEN'S WEARHOUSE SAID SALES FOR THE MONTH ENDED NOV 27 JUMPED 448 TO 223 MILLION FROM 154 MILLION A YEAR EARLIER THE BUSINESSSUIT DISCOUNT RETAILER SAID SAMESTORE SALES GREW 189 IN THE SAME PERIOD THE COMPANY ATTRIBUTED THE GROWTH TO A BIGGER SELECTION OF CLOTHES 9312030173 931203 DILLARD DEPARTMENT STORE SALES LITTLE ROCK ARK DILLARD DEPARTMENT STORES INC SAID SAMESTORE SALES FOR THE MONTH ENDED NOV 27 WERE FLAT COMPARED WITH A YEAR EARLIER THE RETAILER'S TOTAL SALES CLIMBED 33 TO 4263 MILLION FROM 4127 MILLION 9312030172 931203 INTERNATIONAL TROUBLES OF PEREZ LEAVE TONY MANSION ON SHAKY GROUND SITE WAS BELIEVED TO BE MUSEUM FOR VENEZUELA'S EXLEADER NOW ITS USE IS IN QUESTION BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RUBIO VENEZUELA THERE'S A BEAUTIFULLY REFURBISHED COLONIALSTYLE MANSION SITTING OFF SIMON BOLIVAR SQUARE HERE AND THAT'S ALL IT'S DOING SITTING WHILE NOBODY IN THE TOWN WAS EVER TOLD FOR SURE WHAT THE BUILDING WAS SUPPOSED TO BECOME WORD LEAKED OUT DURING THE LAVISH RECONSTRUCTION THAT THE MANSION WAS GOING TO BE THE CARLOS ANDRES PEREZ PRESIDENTIAL MUSEUM AND LIBRARY AND WHY WOULD MR PEREZ WANT TO KEEP IT SO SECRET WELL THE MUSEUM RAN INTO A LITTLE TIMING PROBLEM WHEN CONSTRUCTION BEGAN MR PEREZ WAS THE PRESIDENT OF VENEZUELA BUT AFTER SURVIVING TWO MILITARY COUP ATTEMPTS LAST YEAR HE WAS SUSPENDED FROM OFFICE IN MAY ON CHARGES OF MISHANDLING 175 MILLION IN SECRET GOVERNMENT FUNDS HE THEN WAS OUSTED AT THE END OF AUGUST THE 70YEAROLD MR PEREZ VEHEMENTLY DENIES THE ALLEGATIONS BUT HAVING A MYSTERIOUSLY FINANCED MUSEUM DEDICATED TO SOMEONE WHO'S OPENLY REVILED BY THE POPULATION AND IS THREATENED WITH JAIL DOESN'T SOUND LIKE A WINNING IDEA HE CAN FORGET ABOUT HAVING THINGS LIKE HIS UNDERPANTS DISPLAYED THERE SAYS JOSE CONTRERAS A LOCAL RESIDENT NO ONE WANTS TO SEE EVEN A PAINTING OF HIM THE ONLY THING HE'D BE ABLE TO EXHIBIT THERE IS HIS CASKET ANOTHER RESIDENT HAS ANOTHER SUGGESTION HE CAN DISPLAY HIS SWISS CHECKBOOK SAYS OIL ENGINEER JAIRO FLORES MR PEREZ STEADFASTLY DENIES HAVING FOREIGNBANK ACCOUNTS MR CONTRERAS IS IN FACT THE ONLY PERSON WHO CATEGORICALLY STATES THAT THE BUILDING WAS GOING TO BE A MUSEUM FOR MR PEREZ HE SHOULD KNOW HE WAS IN CHARGE OF THE BUILDING'S MAINTENANCE BUT HE QUIT A COUPLE OF MONTHS AGO BECAUSE THERE WAS NOTHING TO DO MEANWHILE ALL OTHERS CLAIM THEY DON'T KNOW ANYTHING ABOUT A CARLOS ANDRES PEREZ MUSEUM EVEN THOUGH THE BUILDING IS ON THE SITE WHERE MR PEREZ ONCE LIVED VENEZUELAN NEWSPAPERS IDENTIFIED THE ARCHITECT AS GRAZIANO GASPARINI THE NATIONAL DIRECTOR OF HISTORICAL ARTISTIC AND ENVIRONMENTAL PATRIMONY BUT AS SOON AS A VISITOR WALKS INTO HIS OFFICE HE HANDS THE VISITOR A PIECE OF PAPER WITH TWO NAMES ON THEM THEY'RE THE ARCHITECTS HE SAYS I WAS JUST CALLED UPON TO CORRECT SOME ERRORS THEY MADE ONE OF THE TWO ARCHITECTS MR GASPARINI IDENTIFIED ALVARO VISCONTI SAYS IN A TELEPHONE INTERVIEW THAT THE BUILDING IS FOR A PRECOLOMBIAN ART MUSEUM HE SETS AN APPOINTMENT TO EXPLAIN THE PROJECT BUT DOESN'T SHOW UP TWO DAYS LATER AFTER FAILING TO RETURN DOZENS OF PHONE CALLS HE CALLS TO SAY HE'S NOT SURE WHAT THE BUILDING WILL BE USED FOR WHAT I KNOW IS IT'S A SPACE FOR A MUSEUM HE SAYS HE ALSO CLAIMS HE DOESN'T KNOW WHO'S FINANCING IT OR EVEN WHO'S PAYING HIM RUMOR HAS IT IN VENEZUELA THAT THE MANSION AS WELL AS A RESIDENCE BUILT ACROSS THE STREET WERE FINANCED BY THE CISNEROS FAMILY A BUSINESS DYNASTY BUT A SPOKESMAN FOR ORGANIZACION CISNEROS SAYS WE DON'T HAVE ANYTHING TO DO WITH IT HE SAYS THAT IT WAS PROBABLY FINANCED BY LOCAL BUSINESSMEN OR PUBLIC FUNDS HENCE THE MYSTERY EVERYBODY'S GOING FULLOUT TRYING TO STONEWALL SAYS THE SPOKESMAN WHO REQUESTED ANONYMITY THEN THERE'S CECILIA MATOS MR PEREZ'S QUASIOFFICIAL MISTRESS WHOSE BANK ACCOUNTS ARE BEING INVESTIGATED AS PART OF THE PROBE INTO THE SUSPENDED PRESIDENT'S FINANCES MR CONTRERAS SAYS SHE USED TO COME REGULARLY TO CHECK ON THE PROGRESS OF THE REFURBISHING WHICH INCLUDED RECOBBLING THE STREET BUT A LAWYER FOR MS MATOS HAS DENIED PUBLICLY THAT SHE HAS ANYTHING TO DO WITH ANY MUSEUM AS FOR MR PEREZ HE SAYS HE KNOWS THAT SOME PEOPLE HAVE BEEN PUTTING UP THESE HOUSES IN RUBIO AND THEY COULD BE USED AS A PRESIDENTIAL LIBRARY BUT THE EXPRESIDENT WHO ISN'T IN JAIL BUT AWAITS TRIAL ON THE CORRUPTION CHARGES CLAIMS HE HAS NOTHING TO DO WITH IT AND HE HASN'T DECIDED WHETHER HE WOULD ACCEPT THE HONOR IT WON'T BE FOR ME HE SAID IN AN INTERVIEW IT WILL BE FOR THE PEOPLE OF RUBIO IN FACT 10 MONTHS AFTER THE COMPLETION OF THE BUILDINGS THE PEOPLE OF RUBIO CAN THINK OF ALL SORTS OF USES FOR THE HOUSES OTHER THAN A CARLOS ANDRES PEREZ MUSEUM AND LIBRARY WHAT DO WE NEED A CARLOS ANDRES PEREZ MUSEUM FOR ASKS MR FLORES THE TOWN COUNCILMAN IT WOULD BE THE MOST UNWANTED PUBLIC WORK IN THE CITY IT WOULD BE A MONUMENT TO WASTE AND CORRUPTION HE DID NOTHING FOR RUBIO IN HIS NINE YEARS AS PRESIDENT I LIKE THE CONSTRUCTION SAYS MAYOR PEDRO FERNANDEZ IT'S MARVELOUS IT COULD BE VERY USEFUL MR FERNANDEZ FAVORS MOVING CITY HALL THERE OTHERS SUGGEST RUBIO A CITY IN THE WESTERN PART OF VENEZEULA NEAR THE COLOMBIA BORDER MOVE ITS DILAPIDATED MUSEUM THERE BUT THERE'S A PROBLEM YOU CAN'T MOVE INTO A HOME YOU DON'T OWN AND SINCE NOBODY KNOWS FOR SURE WHO OWNS THESE BUILDINGS THEY DON'T KNOW WHOM TO CONTACT WE'RE TRYING TO FIND OUT NOW WHO OWNS IT AND CLAIM THE BUILDING FOR THE TOWN SAYS MR FLORES IN THE MEANTIME THE BUILDINGS ARE LIKELY TO REMAIN WHAT MR GASPARINI THE ARCHITECTURAL CONSULTANT CALLS THE MUSEUM OF THIN AIR 9312030171 931203 SHE CLAPPED HARD BUT THE CLAPPER GAVE HER NO REASON TO APPLAUD BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL EDNA HUBBS WAS GIVEN THE CLAPPER AS A CHRISTMAS PRESENT A COUPLE OF YEARS AGO BUT THE DEVICE WHICH TURNS APPLIANCES ON AND OFF WHEN PEOPLE CLAP THEIR HANDS HAS TURNED OFF MS HUBBS LAST WEEK A NEW YORK STATE APPEALS COURT IN AUBURN LAUGHED OFF HER CLAIM THAT SHE INJURED HERSELF BY CLAPPING TOO HARD IN AN EFFORT TO GET THE CLAPPER TO WORK MS HUBBS 80 YEARS OLD SAYS HER HANDS WERE HURT AND AS A RESULT SHE COULDN'T PEEL POTATOES I NEVER ATE SO MANY BAKED POTATOES IN MY LIFE SHE SAYS I TELL YOU IT WASN'T FUNNY NONE OF MY ELDERLY FRIENDS WANT CLAPPERS AS SHOWN ON TELEVISION ADVERTISEMENTS USERS ATTACH A SOUNDACTIVATED SWITCH TO THE TV BED LIGHT OR WHATEVER AND CLAP TWICE TO ACTIVATE THE SWITCH MS HUBBS HOWEVER COULDN'T GET HER CLAPPER TO WORK BEFORE RETURNING IT TO THE STORE SHE SAYS SHE GAVE ONE LAST HARD CLAP INJURING HER HANDS IN THE PROCESS MS HUBBS WHO SAYS SHE NEEDED AN OPERATION TO REPAIR THE DAMAGE SUED A STATE TRIAL COURT DISMISSED MOST OF THE LAWSUIT BUT ALLOWED PART OF THE CASE DEALING WITH BREACH OF WARRANTY TO CONTINUE JOSEPH ENTERPRISES THE SAN FRANCISCOBASED MAKER OF THE DEVICE APPEALED IN ITS RULING THE APPEALS COURT DETERMINED THAT MS HUBBS'S INJURY WAS CAUSED BY THE EXTRA HARD CLAP AND NOT BECAUSE OF A DEFECT IN THE DEVICE JOSEPH PEDOTT OWNER OF JOSEPH ENTERPRISES SAYS DIRECTIONS INCLUDED IN THE PACKAGE ADVISE PEOPLE WHO FIND CLAPPING DIFFICULT TO USE A CLICKER INSTEAD THEY CAN BUY IT FROM US FOR 250 HE SAYS MR PEDOTT SAYS HE HAS SOLD MILLIONS OF CLAPPERS THANKS IN PART TO A TV COMMERCIAL THAT IS PLAYED TO THE MILITARY MARCHING CHANT SOUND OFF THE CLAPPER CLAP CLAP THE HUBBS CASE WASN'T THE FIRST CLAPPER SUIT A WOMAN HAD CLAIMED THAT HER TELEVISION SET BURNED AFTER SHE TRIED TO CLAP IT ON ANOTHER USER HAD CHARGED THAT FIRE SPEWED OUT OF THE CLAPPER AFTER SHE ATTACHED IT TO HER LIGHT SWITCH BOTH CLAIMANTS LOST THEIR CASES MR PEDOTT SAYS MS HUBBS WHO SUFFERS FROM ARTHRITIS SAYS HER HANDS ARE LESS PAINFUL FOLLOWING THE OPERATION ALTHOUGH DISAPPOINTED WITH THE OUTCOME OF HER LAWSUIT SHE SAYS I'M NOT EATING BAKED POTATOES ANYMORE 9312030170 931203 WOLOHAN LUMBER SALES UP SAGINAW MICH WOLOHAN LUMBER CO SAID IT HAD NOVEMBER SALES OF 343 MILLION A 40 INCREASE FROM A YEAR AGO ELEVENMONTH SALES WERE 3515 MILLION UP 94 FROM THE SAME PERIOD OF 1992 9312030169 931203 BUSINESS BRIEF FORD DOE JOIN IN EFFORT TO EXPLORE HYBRID VERSIONS OF ELECTRIC VEHICLES DETROIT FORD MOTOR CO AND THE US DEPARTMENT OF ENERGY ARE ENTERING INTO A 122 MILLION JOINT RESEARCH PROGRAM THAT WOULD ALLOW THE AUTO MAKER TO EXPLORE HYBRID FORMS OF ELECTRIC VEHICLES THAT ARE EXPECTED TO RUN LONGER AND FARTHER THAN CARS POWERED SOLELY BY ELECTRICITY THE PROJECT TO BE FUNDED EQUALLY BY THE DOE AND A GROUP THAT INCLUDES FORD AND ITS SUPPLIERS IS ONE OF SEVERAL THE GOVERNMENT IS SPONSORING TO HELP FOSTER ALTERNATIVES TO INTERNALCOMBUSTION ENGINES THE PROGRAMS HELP TRANSFER DEFENSE TECHNOLOGIES TO THE PRIVATE SECTOR WHILE HELPING DETROIT'S BIG THREE TO ADDRESS REGULATORY CHALLENGES BROUGHT ON BY POLLUTION CONCERNS CHIEF AMONG THOSE REGULATORY HURDLES IS A CALIFORNIA REQUIREMENT THAT CALLS FOR ALL MAJOR AUTO MAKERS DOING BUSINESS IN THAT STATE TO BEGIN SELLING SOME ZEROEMISSION VEHICLES OR ELECTRICPOWERED CARS BY 1998 A GOAL THAT THE BIG THREE HAVE BEEN PUSHING TO REPEAL THEY RECEIVED A BOOST TWO WEEKS AGO WHEN JANANNE SHARPLESS A STAUNCH ADVOCATE OF ELECTRIC VEHICLES RESIGNED AS CHAIRWOMAN OF THE CALIFORNIA AIR RESOURCES BOARD AMID POLITICAL PRESSURE FROM OUTSIDE BUSINESS INTERESTS SOURCES WITHIN CARB HAVE BEGUN TO SPECULATE THAT THE AUTO MAKERS ARE INCREASING THEIR RESEARCH INTO HYBRID VEHICLES IN THE HOPES THAT SUCH HYBRIDS WILL ONE DAY PASS AS ZEROEMISSION VEHICLES IN CALIFORNIA BUT A SPOKESMAN FOR THE AIRQUALITY AGENCY SAID AN ELECTRIC CAR AIDED BY ANOTHER ENERGY SOURCE WOULD HAVE TO BE 200 TIMES CLEANER THAN A CONVENTIONAL CAR TO MEET THE STATE'S ZEROEMISSION STANDARD I DON'T KNOW IF THE AUTO MAKERS CAN MAKE HYBRIDS WITH EMISSION LEVELS THAT LOW THE CARB SPOKESMAN SAID FORD'S PROGRAM WHICH MARRIES ELECTRICVEHICLE TECHNOLOGY TO THAT OF INTERNALCOMBUSTION ENGINES FOLLOWS A SIMILAR JOINT VENTURE ANNOUNCED IN SEPTEMBER BETWEEN GENERAL MOTORS CORP AND THE DOE FOR 138 MILLION HOWEVER AS OF NOW THE AUTO MAKERS ARE CONTINUING TO CONDUCT MORE OF THEIR ADVANCED RESEARCH IN ELECTRIC VEHICLES EVEN THOUGH THE CARS HAVE LIMITED MARKET POTENTIAL DUE TO THE SLOW PACE OF BATTERY TECHNOLOGY FORD FOR EXAMPLE HAS 260 EMPLOYEES CURRENTLY WORKING ON ELECTRICVEHICLE EFFORTS WHILE THE HYBRID PROGRAM IS ONLY EXPECTED TO EMPLOY ABOUT 20 FORD STAFFERS 9312030168 931203 THURSDAY'S MARKETS STOCKS INCH UP BONDS DROP DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS INCHED HIGHER IN QUIET TRADING AHEAD OF TODAY'S RELEASE OF EMPLOYMENT DATA FOR NOVEMBER BOND PRICES FELL DESPITE A DROP IN OIL PRICES AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE ROSE 503 POINTS TO 370211 STANDARD & POOR'S 500STOCK INDEX GAINED 122 TO 46311 AND THE NASDAQ COMPOSITE INDEX CLIMBED 292 TO 76673 ANALYSTS SAID INVESTORS HARDLY REACTED TO SEVERAL ECONOMIC REPORTS RELEASED YESTERDAY BECAUSE THEY WERE FOCUSED ON THE JOBS DATA COMING TODAY STOCKS WERE HELD IN CHECK MOST OF THE DAY BY A FLAGGING BOND MARKET BOND INVESTORS WERE ESPECIALLY CAUTIOUS AHEAD OF THE EMPLOYMENT DATA TENDING TO IGNORE ANOTHER DROP IN OIL PRICES THAT CARRIED THE PRICE PER BARREL TO 1495 THE LOWEST LEVEL SINCE NOVEMBER 1988 THE RECENT STRING OF POSITIVE ECONOMIC REPORTS IS SEEN AS POSSIBLY TRANSLATING INTO A STRONG JOBS REPORT WHICH COULD SPARK FURTHER SELLING OF BONDS OVERSEAS TOKYO SHARES CONTINUED THEIR REBOUND GAINING 19 AS INVESTORS BET THE GOVERNMENT WILL TAKE STEPS TO REVIVE THE ECONOMY IN EUROPE GERMAN AND SWISS SHARES CLIMBED TO RECORD HIGHS ON INTEREST RATE CUTS BY THE GERMAN DUTCH AND BELGIAN CENTRAL BANKS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 063 TO 10902 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2531 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1168 ISSUES ROSE AND 846 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 628 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17225 MARKS AND 10887 YEN COMPARED WITH 17235 MARKS AND 10875 YEN WEDNESDAY 9312030167 931203 ICH REDEEMS PREFERRED STOCK LOUISVILLE KY ICH CORP SAID IT COMPLETED THE REDEMPTION OF ITS SERIES 1987C 16 PREFERRED STOCK OUTSTANDING AS A RESULT OF THE 50 MILLION REDEMPTION AS WELL AS A 50 MILLION REDEMPTION SEPT 30 OF 11 PREFERRED STOCK THE COMPANY REDUCED ITS ANNUAL DIVIDEND REQUIREMENTS BY 135 MILLION BOTH STOCK SERIES WERE ISSUED IN PRIVATE PLACEMENTS IN 1987 9312030166 931203 VF CORP TO REDEEM NOTES WYOMISSING PA APPAREL COMPANY VF CORP SAID IT WILL REDEEM ON JAN 15 ALL OF ITS 100 MILLION 8 NOTES DUE IN 1997 AT 100 OF PRINCIPAL PLUS ACCRUED INTEREST 9312030165 931203 BASIN EXPLORATION INC DENVER BASIN EXPLORATION INC SAID IT COMPLETED THE ACQUISITION OF 224 OIL AND NATURAL GAS WELLS AND 114 UNDEVELOPED LOCATIONS IN WYOMING FOR 147 MILLION FROM PRIVATE OWNERS IT WOULDN'T IDENTIFY THE OIL AND GAS EXPLORATION COMPANY ALSO SAID IT COMPLETED THE PUBLIC OFFERING OF THREE MILLION COMMON SHARES AT 1175 A SHARE PROCEEDS WERE USED TO FUND THE WYOMING ACQUISITION AND TO REDUCE CERTAIN BANK DEBT BASIN CURRENTLY HAS 104 MILLION SHARES OUTSTANDING 9312030164 931203 50OFF STORES' NOVEMBER SALES SAN ANTONIO TEXAS 50OFF STORES INC SAID ITS COMPARABLESTORE SALES ROSE 19 IN THE FOUR WEEKS ENDED NOV 26 FROM A YEAR EARLIER THE RETAILER SAID TOTAL SALES FOR THE PERIOD ROSE 13 TO 20 MILLION FROM 177 MILLION THE COMPANY ALSO POSTED A LOSS OF 15 MILLION OR 14 CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED OCT 29 COMPARED WITH A PROFIT OF 1 MILLION OR 10 CENTS A SHARE A YEAR EARLIER SALES IN THE PERIOD ROSE 43 TO 454 MILLION FROM 435 MILLION 9312030163 931203 INTERNATIONAL JAPAN'S DIRECTOR OF DEFENSE RESIGNS IN FLAP OVER SPEECH BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S DEFENSE CHIEF WAS FORCED TO RESIGN THURSDAY AFTER SUGGESTING THE COUNTRY AMEND ITS PACIFIST CONSTITUTION KEISUKE NAKANISHI DIRECTORGENERAL OF JAPAN'S DEFENSE AGENCY WAS THE FIRST CABINET MEMBER IN THE FOURMONTHOLD COALITION TO STEP DOWN THE FLAP OVER HIS CONTROVERSIAL REMARKS MADE IN A SPEECH EARLIER THIS WEEK ESSENTIALLY SHUT DOWN PARLIAMENT THURSDAY AND WAS A DEBILITATING DISTRACTION FOR THE GOVERNMENT AT AN EXTREMELY DELICATE TIME MR NAKANISHI'S SUGGESTIONS ECHO AN INCREASINGLY POPULAR VIEW IN JAPAN THAT THE NATION SHOULD DROP ITS POSTWAR BAN ON THE DISPATCH OF TROOPS OVERSEAS THE FAMOUS PEACE CLAUSE INSERTED BY GEN DOUGLAS MACARTHUR DURING THE AMERICAN OCCUPATION IN 1946 WAS INTENDED AS A CAP ON JAPANESE MILITARISM AND HAS BEEN A PILLAR OF JAPANESE DIPLOMACY EVER SINCE IT'S NOT IN THE BEST INTEREST OF THE JAPANESE PEOPLE TO STICK WITH A CONSTITUTION HALF A CENTURY OLD SAID MR NAKANISHI A MEMBER OF THE CONSERVATIVE JAPAN RENEWAL PARTY HE AND OTHERS HAVE ARGUED THAT THE CONSTITUTION DOESN'T SUIT CHANGES IN JAPAN AND IN THE WORLD THEY INSIST THEY AREN'T SEEKING GREATER MILITARY CLOUT BUT WANT THE NATION OFTEN CRITICIZED FOR SHUNNING GLOBAL RESPONSIBILITIES TO PARTICIPATE MORE FULLY IN UNITED NATIONS PEACEKEEPING OPERATIONS JAPAN WAS BERATED BY THE US AND OTHERS FOR FAILING TO JOIN THE ALLIES IN THE 1991 GULF WAR AFTER A WRENCHING NATIONAL DEBATE JAPAN LAST YEAR SENT TROOPS TO HELP UN EFFORTS IN CAMBODIA ALTHOUGH THEY WERE LIMITED TO NONCOMBAT ROLES MR NAKANISHI SAID IN HIS SPEECH THAT THE CAMBODIA MISSION WAS TECHNICALLY A VIOLATION OF THE CONSTITUTION AND THAT THE DOCUMENT SHOULD BE REVISED TO MORE CLEARLY ALLOW SUCH EFFORTS STILL MR NAKANISHI'S PROPOSAL WAS ONE HOT POTATO TOO MANY FOR THE RULING COALITION WHICH ALREADY IS TRYING TO CHANGE A NUMBER OF OTHER LONGSTANDING FUNDAMENTAL JAPANESE POLICIES PRIME MINISTER MORIHIRO HOSOKAWA'S TOP PRIORITY IS OVERHAULING JAPAN'S BASIC ELECTORAL RULES BY THE END OF THE YEAR A PLAN THAT IS RUNNING INTO SOME TROUBLE IN PARLIAMENT NEXT WEEK MR HOSOKAWA IS EXPECTED TO ANNOUNCE AN END TO JAPAN'S BAN ON RICE IMPORTS A MOVE CONSIDERED NECESSARY FOR THE COMPLETION OF THE SOCALLED URUGUAY ROUND OF WORLD FREETRADE TALKS THE FLAGGING ECONOMY IS FORCING THE GOVERNMENT TO ACCELERATE PLANS TO REFORM THE NATION'S TAX CODE MR HOSOKAWA DISAVOWED MR NAKANISHI'S COMMENTS AND SAID THEY DIDN'T REPRESENT GOVERNMENT POLICY MR NAKANISHI'S SPEECH WAS PARTICULARLY EMBARRASSING FOR THE GOVERNMENT BECAUSE THE SEVENPARTY COALITION ALSO INCLUDES THE SOCIALIST PARTY WHICH HAS STAUNCHLY OPPOSED ANY CHANGES TO JAPAN'S CONSTITUTION THE SOCIALISTS JOINED THE RULING COALITION OVER THE SUMMER BECAUSE OF AN AGREEMENT AMONG THE PARTIES ON POLITICAL REFORM SOCIALIST PARTY STALWARTS HAD OBJECTED STRONGLY TO JOINING HANDS WITH MR NAKANISHI'S RENEWAL PARTY AND MR HOSOKAWA IS WORRIED ABOUT ANY POLICY SPLITS THAT COULD TEAR APART THE DELICATE ALLIANCE THE SOCIALIST PARTY LEADER YESTERDAY BLASTED MR NAKANISHI THE ISSUE HOWEVER WON'T GO AWAY LATER THIS MONTH UN SECRETARY GENERAL BOUTROS BOUTROSGHALI IS SCHEDULED TO VISIT TOKYO HE IS EXPECTED TO PRESS THE GOVERNMENT TO PLAY A GREATER ROLE IN THE PEACEKEEPING OPERATIONS JAPANESE PRESS REPORTS THURSDAY NIGHT SAID THAT MR NAKANISHI WOULD BE REPLACED BY KAZUO AICHI A FORMER ENVIRONMENT MINISTER WHO ALSO IS A MEMBER OF THE RENEWAL PARTY 9312030162 931203 WHO'S NEWS EQUITABLE COS EQUITABLE COS NEW YORK INVESTMENT BANKING AND SECURITIES FIRM DONALDSON LUFKIN & JENRETTE AN EQUITABLE SUBSIDIARY NAMED KARL R WYSS 53 YEARS OLD A MANAGING DIRECTOR IN ITS MERCHANT BANKING GROUP MR WYSS IS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LEAR SIEGLER INC 9312030161 931203 WHO'S NEWS PHOENIX RE CORP PHOENIX RE CORP NEW YORK WENDY LUSCOMBE 42 YEARS OLD WAS ELECTED A DIRECTOR OF THIS REINSURANCE COMPANY EXPANDING THE BOARD TO 10 MEMBERS MS LUSCOMBE CURRENTLY SERVES AS A NONEXECUTIVE DIRECTOR OF BERKELEY COMMERCIAL THE COMMERCIAL INVESTMENT ARM OF BERKELEY GROUP PLC OF THE UNITED KINGDOM 9312030160 931203 NORTH KOREA'S NUCLEAR MOVES GO UNWATCHED UNABLE TO VERIFY INTENTIONS UN SECURITY COUNCIL IS FREE TO PICK UP ISSUE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL THE DIRECTOR OF THE INTERNATIONAL ATOMIC ENERGY AGENCY HANS BLIX SAYS HIS AGENCY CAN NO LONGER VERIFY THAT NORTH KOREA'S NUCLEAR ACTIVITIES REMAIN PEACEFUL DR BLIX'S STATEMENT MADE YESTERDAY BEFORE THE AGENCY'S BOARD OF GOVERNORS IN VIENNA CAME AS US AND UNITED NATIONS OFFICIALS ARE REVIEWING TOUGHER STEPS THAT THEY MAY HAVE TO TAKE TO DEAL WITH NORTH KOREA'S NINEMONTHLONG REFUSAL TO COMPLY WITH ITS TREATY OBLIGATIONS DAVID KYD A SPOKESMAN FOR THE IAEA SAID THAT SINCE THE AGENCY CAN'T PERFORM ITS DUTIES IN NORTH KOREA THE UN SECURITY COUNCIL IS FREE TO TAKE UP THE ISSUE AT ANY TIME THE GAME IS NOT TOTALLY OVER BUT WE'RE CLOSE TO THAT HE ADDED SAYING THAT IF NORTH KOREA DECIDED TO PERMIT AN IAEA INSPECTION NEXT WEEK THE AGENCY MIGHT BE ABLE TO RESTORE SOME OF ITS MONITORING CAPABILITIES US OFFICIALS WHO ASKED NOT TO BE IDENTIFIED SAY THE US REMAINS HOPEFUL THAT A DIPLOMATIC SOLUTION CAN BE ARRANGED IF NOT THE US COULD ASK THE UN TO IMPOSE ECONOMIC SANCTIONS AGAINST THE ALREADY ISOLATED STALINIST NATION ON THE NBC EVENING NEWS YESTERDAY PRESIDENT CLINTON SAID I'M DOING WHAT I CAN NOW TO DEFUSE THIS CRISIS AND TO GIVE THE NORTH KOREANS A WAY TO JOIN THE COMMUNITY OF NATIONS AND TO ENTER A DIALOGUE WITH THE SOUTH WHEN ASKED ABOUT THE POSSIBILITY OF A US MILITARY BUILDUP IN KOREA THE PRESIDENT SAID THAT I WOULDN'T RULE IT OUT BUT HE ADDED I STILL THINK THERE'S A CHANCE THAT WE CAN PUT THEM IN A POSITION WHERE THEY CAN CRAWL BACK OFF THAT LEDGE THEY'RE ON ANY ECONOMIC SANCTIONS WOULD REQUIRE HELP FROM CHINA WHERE OFFICIALS HAVE EXPRESSED DOUBTS OVER WHETHER SUCH STEPS WOULD WORK NORTH KOREA RECEIVES FOOD AND ENERGY SUPPLIES BY RAIL AND TRUCK FROM CHINA BUT SOME EXPERTS BELIEVE THAT THE BORDER AREA MAY NOT BE EASILY CLOSED BECAUSE IT IS PARTLY CONTROLLED BY LOCAL WARLORDS WHO GAIN MONEY FROM SMUGGLING NORTH KOREA ALSO RECEIVES OIL SHIPMENTS FROM IRAN BY SEA AND TANKERS MIGHT BE STOPPED BY AN INTERNATIONAL BLOCKADE OF ITS PORTS NORTH KOREAN OFFICIALS HAVE REPEATEDLY WARNED THAT ANY MOVE TO TIGHTEN ECONOMIC SANCTIONS COULD PROVOKE A MILITARY RESPONSE ONE OF THE PENTAGON'S DIFFICULTIES IN PLANNING TO DEFEND SOUTH KOREA IS THAT 70 OF NORTH KOREA'S 11 MILLIONMAN MILITARY IS ARRAYED WITHIN 60 MILES OF THE BORDER THIS FORWARD POSITIONING WHICH HAS BEEN EVIDENT FOR YEARS MAKES IT RELATIVELY EASY TO MOUNT A SURPRISE ATTACK ON SEOUL WHICH IS JUST 25 MILES SOUTH OF THE BORDER WITHIN ARTILLERY RANGE YESTERDAY A PENTAGON SPOKESMAN SAID THERE ARE NO CURRENT MOVES TO INCREASE THE 37000 US TROOPS STATIONED IN SOUTH KOREA OR TO RAISE THEIR STATUS OF ALERT HOWEVER OTHER OFFICIALS SAID PLANNERS WERE STUDYING LONGSTANDING PLANS TO RAPIDLY REINFORCE US AND SOUTH KOREAN FORCES ON THE PENINSULA IN THE EVENT OF AN ATTACK FROM THE NORTH THE PLANS CALL FOR MASSIVE REINFORCEMENTS BY AIR AND SEA USING A SERIES OF MOTHBALLED BASES KEPT IN READINESS FOR US FORCES AND EMERGENCY AIRSTRIPS INCLUDING TWO THAT USE PART OF THE FREEWAY SYSTEM JUST SOUTH OF SEOUL ONE OFFICIAL SAID THE PLAN'S FOCUS IS ON BLUNTING A CONVENTIONAL ATTACK BECAUSE PLANNERS BELIEVE NORTH KOREA DOESN'T YET HAVE THE WEAPONS OR DELIVERY VEHICLES TO SUSTAIN A NUCLEAR STRIKE UNDER THE NUCLEAR NONPROLIFERATION TREATY NORTH KOREA IS OBLIGED TO OPEN ITS NUCLEAR FACILITIES TO INTERNATIONAL INSPECTION THE NATION ANNOUNCED IT WAS WITHDRAWING FROM THE TREATY LAST MARCH BUT LATER SUSPENDED THE MOVE PENDING DISCUSSIONS WITH THE US THE FIRST GOAL OF THE TALKS WAS TO OPEN NORTH KOREA TO REGULAR INSPECTIONS BY THE IAEA SO FAR THEY HAVEN'T PRODUCED ANY MAJOR CONCESSIONS ALTHOUGH MR KYD THE IAEA SPOKESMAN SAID THAT NORTH KOREA INFORMED THE AGENCY ON WEDNESDAY THAT ITS INSPECTORS MIGHT BE PERMITTED A VERY LIMITED INSPECTION TO REPLACE VIDEOTAPES AND BATTERIES THAT POWER THE AGENCY'S MONITORING EQUIPMENT AT YONGBYON A NUCLEAR RESEARCH SITE NORTH OF PYONGYANG THE IAEA REJECTED THE OFFER HE SAID ASSERTING THAT ITS MANDATE REQUIRES A FULL INSPECTION OF REGULARLY VISITED FACILITIES AT THE SITE THE IAEA HAS USED ROBOT CAMERAS AND SEALS TO MAKE SURE THAT NUCLEAR FUEL ISN'T DIVERTED FROM A RESEARCH REACTOR AT YONGBYON BUT THE MONITORING EQUIPMENT IS CURRENTLY OUT OF ORDER THE US ALSO MONITORS THE FACILITY BY SATELLITES WHICH WOULD GIVE SOME WARNING IF NORTH KOREA DECIDED TO REMOVE A PORTION OF THE FUEL IN THE OPERATING REACTOR FOR WEAPONS PURPOSES AS THEY BURN URANIUM FUEL RESEARCH REACTORS CREATE PLUTONIUM WHICH IS THE EXPLOSIVE METAL USED IN NUCLEAR WARHEADS THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9312030159 931203 THOUGH JEWELRYAUCTION PRICES SOAR ONLY INVEST FOR LOVE AND LONG TERM BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL GENEVA HAS THE TIME COME FOR INVESTORS TO JUMP INTO THE FINEJEWELRY MARKET FOLLOWING THE TOP PRICES PAID AT AUCTIONS HERE IN NOVEMBER ONLY IF YOU INVEST FOR LOVE NOT QUICK MONEY SAY THE EXPERTS DIAMONDS MAY BE A GIRL'S BEST FRIEND BUT TO MAKE A SIGNIFICANT PROFIT INVESTORS MAY HAVE TO HANG ON TO THEM FOREVER THAT SAID FOR FINEJEWELRY LOVERS WHO DO THINK LONG TERM NOW COULD BE THE TIME TO BUY EXPERTS SAY BUT THEY ADD THAT INVESTORS SHOULD BUY PIECES THAT ARE APPEALING TO THEM AND NOT TRY TO MAKE OBJECTIVE PURCHASES THERE IS A LOT OF HIGHQUALITY JEWELRY COMING ON THE MARKET SAYS DAVID BENNETT DIRECTOR OF THE EUROPEAN JEWELS AND PRECIOUSOBJECTS DIVISION AT SOTHEBY'S IN GENEVA OWNED BY SOTHEBY'S HOLDINGS INC FRANCOIS CURIEL WHO HEADS INTERNATIONALJEWEL SALES AT CHRISTIE'S ADDS THAT BUYERS CAN ALSO BENEFIT FROM REASONABLE PRICES PRICES HAVE STRENGTHENED RECENTLY BUT THEY HAVEN'T GONE WILD SUGGESTS MR CURIEL AUCTION PRICES ARE WITHIN THEIR ESTIMATES THE JEWELRY MARKET IS STRONG MR CURIEL SAYS SUPERB STONES FETCH TOP PRICES AND GOODQUALITY ONES ARE ENJOYING ANNUAL APPRECIATION OF AROUND 2 TO 4 AND HE BELIEVES THE JEWELRY MARKET COULD SEE GOOD STEADY GROWTH IN THE FUTURE BUYING FINE JEWELRY ALSO HAS A NUMBER OF OTHER PLUSES THE EXPERTS SAY IT IS A WAY OF DIVERSIFYING ASSETS AND JEWELRY IS EASILY TRANSPORTED AND IS A LOT MORE BEAUTIFUL THAN STOCKS AND BONDS THE MARKET HOWEVER ISN'T AS LIQUID AS SECURITIES YOU CAN'T TAKE JEWELS INTO AN AUCTION HOUSE AND EXPECT MONEY IN YOUR POCKET THE NEXT DAY AUCTIONS ARE PREPARED MONTHS AHEAD YOU CAN IMPRESS THE NEIGHBORS WITH GLITTERING GEMS BUT THERE'S NO INTEREST PAID ON A NECKLACE IN GENEVA LAST MONTH SOME SPECTACULAR GEMS WERE ON THE AUCTION TABLE AT THE FIVESTAR BEAU RIVAGE HOTEL SOTHEBY'S SET A WORLD RECORD FOR A JEWELRY AUCTION SELLING 701 MILLION IN THREE SESSIONS INCLUDING A RARE 10036 CARAT TOPQUALITY FLAWLESS DIAMOND FOR 1188 MILLION AT THE HOTEL RICHEMOND RIVAL AUCTIONEERS CHRISTIE'S OWNED BY CHRISTIES INTERNATIONAL PLC SOLD THE ARCHDUKE JOSEPH DIAMOND RING ONCE OWNED BY THE GREATGRANDSON OF EMPEROR LEOPOLD II OF THE HOUSE OF HAPSBURG FOR 646 MILLION AT 7854 CARATS CHRISTIE'S SAID THE DIAMOND WAS THE LARGEST HIGHESTQUALITY HISTORIC DIAMOND TO EVER COME ON THE MARKET THIS YEAR BOTH AUCTION HOUSES SAY THEIR WORLDWIDE JEWELRY SALES HAVE SOARED SOTHEBY'S CLAIMS TO HAVE MORE THAN DOUBLED VOLUME IN 1993 COMPARED WITH LAST YEAR AT CHRISTIE'S REVENUE FROM JEWELRY WAS UP 40 FOR THE PERIOD SOTHEBY'S MR BENNETT SAYS THE ASTONISHING RESULT OF THE BEAU RIVAGE SALE WAS DUE TO SUPERB MATERIAL THERE ARE ALWAYS PEOPLE IN THE WORLD MAKING MONEY WHO LIKE THEIR WIVES TO WEAR SPECTACULAR JEWELRY HE SAYS AND JEWELRY IS SUCH AN INTERNATIONAL COMMODITY AUCTIONEERS SAY GROWTH AT THE MOMENT IS PUSHED BY DEMAND FROM THE MIDDLE EAST AND ASIA PLUS SOME SOUTH AMERICAN BUYERS THERE ARE SIGNS OF A PICKUP IN THE US THEY SAY BUT EUROPE REMAINS LACKLUSTER EXCEPT FOR ITALY WHERE MR CURIEL SAYS THERE IS A GREAT APPETITE FOR FINE JEWELRY DEMAND IS PARTICULARLY STRONG FOR DIAMONDS DIAMONDS ARE WHAT PRIVATE COLLECTORS AND DEALERS ARE AFTER AT THE MOMENT MR CURIEL SAYS COLORED DIAMONDS ARE MOST DESIRED HE ADDS AT CHRISTIE'S GENEVA SALE LONDON DEALER LAURENCE GRAFF PAID 411 MILLION FOR A PURPLISH PINK DIAMOND THAT HE CHRISTENED THE GRAFF PINK WHO BUYS JEWELRY MEN THE EXPERTS SAY IF A WOMAN DOESN'T WEAR JEWELRY YOU KNOW THE MAN HAS NO INTEREST IN IT HARRY HOFMANN OWNER OF HARRY HOFMANN & CO SAYS WHAT SHOULD A BUYER LOOK FOR BUY QUALITY NOT QUANTITY THE QUALITY OF THE STONE COUNTS NOT ITS SIZE SAYS MR BENNETT GET TO KNOW THE QUALITY STANDARDS USED IN THE TRADE DIAMONDS FOR EXAMPLE ARE GRADED ACCORDING TO CUT CLARITY COLOR AND CARAT WEIGHT TIFFANY & CO THE US JEWELERS PROVIDES BOOKLETS ON HOW TO BUY DIAMONDS AND PEARLS AT ITS EUROPEAN SHOPS GET AN INTERNATIONALLY ACCEPTED CERTIFICATE OF AUTHENTICITY WHEN BUYING CERTAIN DIAMONDS PARTICULARLY COLORED STONES BUY A DESIGNER PIECE IF JEWELRY COMES FROM A FAMOUS SHOP WITH A DISTINCT STYLE IT CAN ADD TO THE PRICE WEAR A RECOGNIZABLE DESIGNER PIECE AT A PARTY SAYS MR HOFMANN AND THERE'S INSTANT PRESTIGE HISTORY CAN ADD TO VALUE IF A JEWEL BELONGED TO AN ARCHDUKE THERE'S A LITTLE PLUS MR CURIEL SUGGESTS LOOK AT UNDISCOVERED PERIODS STARTING OUT TODAY I WOULD BUY JEWELRY FROM THE 1960S AND 1970S THERE'S A LOT OF POTENTIAL SAYS MR HOFMANN POINTING TO AN ELABORATE BROACH FOR 35000 SWISS FRANCS 23500 IT COST DOUBLE WHEN FIRST SOLD ASK QUESTIONS MR BENNETT SAYS TOO FEW PEOPLE ASK QUESTIONS ABOUT WHAT THEY BUY PRESALE VIEWINGS PROVIDE AN OPPORTUNITY TO QUERY AUCTIONHOUSE STAFF YOU DON'T HAVE TO BE RICH TO BUY JEWELRY THOUGH IT HELPS SAYS MR BENNETT MR CURIEL SAYS YOU CAN PICK UP A COLLECTION OF INTERESTING PIECES AT AUCTIONS FOR 50000 OVER A FOUR TO FIVEYEAR PERIOD FOR THOSE WITH A LOWER BUDGET THERE ARE SALES WITH WORTHWHILE JEWELRY STARTING AT 800 FOR A GOOD PIECE MR CURIEL ADVISES POTENTIAL BUYERS TO FIRST SIT IN ON AUCTIONS WITHOUT BUYING AND TO VISIT JEWELRY SHOPS THEN IF YOU BUY FOR LOVE MR CURIEL SAYS YOU COULD GET A NICE SURPRISE WITH THE PRICE DEVELOPMENT 9312030158 931203 INTERNATIONAL CLINTON WEIGHS A MEETING WITH ASSAD IF IT COULD AID MIDEAST PEACE EFFORTS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON COULD MEET WITH SYRIAN PRESIDENT HAFEZ AL ASSAD NEXT MONTH IF THE ADMINISTRATION DETERMINES THAT SUCH A SESSION WOULD BOLSTER MIDDLE EAST PEACE EFFORTS MIDEAST PEACE PROSPECTS RECENTLY HAVE BOGGED DOWN AMID A FAMILIAR PATTERN OF ESCALATING VIOLENCE IN ISRAEL AND THE OCCUPIED TERRITORIES FOLLOWING THE BRIGHT PROMISE OF SEPTEMBER'S PEACE ACCORD BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION NEARLY FOUR DOZEN ISRAELIS AND PALESTINIANS HAVE BEEN KILLED SINCE THE AGREEMENT WAS SIGNED THERE HAS BEEN NO PROGRESS IN TALKS BETWEEN EITHER ISRAEL AND SYRIA OR ISRAEL AND LEBANON AND JORDAN IS UNWILLING TO MOVE TOWARD A PEACE TREATY AHEAD OF ITS ARAB BRETHREN MR CLINTON'S DECISION ABOUT WHETHER TO HOLD A MEETING WITH MR ASSAD WILL DEPEND ON THE RESULTS OF A WEEKLONG MIDEAST TRIP BEGINNING TONIGHT BY SECRETARY OF STATE WARREN CHRISTOPHER SENIOR US OFFICIALS SAY MR CHRISTOPHER WILL BE SOUNDING OUT BOTH MR ASSAD AND ISRAELI PRIME MINISTER YITZHAK RABIN ABOUT THEIR WILLINGNESS TO RESUME SERIOUS NEGOTIATIONS THERE'S NO WAY WE'RE GOING TO PUT THIS ON THE TABLE UNTIL WE KNOW THE DISPOSITION OF THE PARTIES A SENIOR US OFFICIALS SAID ANOTHER SENIOR AIDE EMPHASIZED THAT THE IDEA FOR THE CLINTONASSAD MEETING WAS ONLY IN THE PLANNING STAGES AND IS SOMETHING THAT WOULD BE CONSIDERED DEPENDING WHERE WE ARE WITH REGARD TO THE RESPONSES OF MESSRS ASSAD AND RABIN MR CHRISTOPHER TRAVELING IN EUROPE YESTERDAY SOUGHT TO DAMP OVERALL EXPECTATIONS FOR PROGRESS DURING HIS MIDDLE EAST TRIP I WOULD NOT URGE YOU TO ANTICIPATE ANY KIND OF BREAKTHROUGH HE TOLD REPORTERS BUT US OFFICIALS ALSO ARE CONSIDERING A CLINTONASSAD MEETING ACCORDING TO A TOP OFFICIAL INVOLVED IN MIDEAST POLICY AS A WAY OF KEEPING AN INCREASINGLY SUSPICIOUS MR ASSAD ENGAGED IN THE PEACE PROCESS ISRAEL AND THE PALESTINIANS ALREADY ARE ENGAGED IN NEGOTIATIONS JORDAN AND ISRAEL HAVE AGREED ON AN AGENDA FOR TALKS AND LEBANON WON'T ACT UNTIL SYRIA WHICH HEAVILY INFLUENCES THAT COUNTRY GIVES THE GREEN LIGHT AS A RESULT MR CHRISTOPHER IS CONCENTRATING ON MR ASSAD WHO IS THE KEY FIGURE NEEDED TO ACHIEVE COMPREHENSIVE MIDDLE EAST PEACE MR CLINTON WILL BE IN EUROPE NEXT MONTH FOR A NORTH ATLANTIC TREATY ORGANIZATION SUMMIT MEETING AS WELL AS A SUMMIT SESSION IN MOSCOW WITH RUSSIAN PRESIDENT BORIS YELTSIN THE MEETING WITH MR ASSAD MAY BE HELD IN GENEVA US OFFICIALS SAY THE POSSIBILITY OF A CLINTONASSAD MEETING WAS REPORTED THIS WEEK IN A NEWSPAPER COLUMN BY ROWLAND EVANS AND ROBERT NOVAK ISRAELI AND PLO OFFICIALS ARE WORKING TOWARD A DEC 13 DEADLINE WHEN ISRAEL IS SUPPOSED TO BEGIN WITHDRAWING ITS TROOPS FROM GAZA AND THE WEST BANK TOWN OF JERICHO IN THE FIRST PHASE OF THEIR AGREEMENT AS THEY CONTINUE BARGAINING OVER THE INTERPRETATION OF THE BROAD ACCORD THEY SIGNED IN SEPTEMBER EXTREMISTS ON BOTH SIDES ARE TRYING TO SCUTTLE THE PLAN YESTERDAY IN HEBRON ON THE ISRAELIOCCUPIED WEST BANK JEWISH SETTLERS FIRED WEAPONS SMASHED WINDOWS AND SLICED PALESTINIANS' CAR TIRES IN RESPONSE TO THE KILLING OF A JEW THE PREVIOUS DAY ACCORDING TO WIRESERVICE REPORTS THE VIOLENCE AND THE PROSPECT OF THE WITHDRAWAL OF ISRAELI TROOPS WHICH IS STRONGLY OPPOSED BY ISRAELI HARDLINERS HAVE CAUSED DOMESTIC POLITICAL PROBLEMS FOR MR RABIN THIS IN TURN HAS PREVENTED HIM FROM MOVING FORWARD IN TALKS WITH SYRIA ISRAELI OFFICIALS SAY THAT MR RABIN CAN'T OVERLOAD THE POLITICAL CIRCUITS WITH COMPROMISES WITH SYRIA UNTIL THE AGREEMENT WITH THE PALESTINIANS HAS BEEN FULLY WORKED OUT DURING HIS RECENT VISIT TO WASHINGTON HOWEVER MR RABIN PRIVATELY TOLD OFFICIALS THAT HE WOULD BE PREPARED TO MOVE ON BOTH THE SYRIAN AND JORDANIAN TRACKS ONCE THE IMPLEMENTATION OF THE AGREEMENT WITH THE PALESTINIANS BEGINS THIS WEEK HOWEVER MR RABIN PUBLICLY WARNED THAT HE IS MORE CONCERNED WITH WORKING OUT AN AGREEMENT THAT MEETS ISRAEL'S SECURITY NEEDS THAN HE IS WITH MEETING A SPECIFIC DATE REGARDING SYRIA US OFFICIALS BELIEVE THAT MR ASSAD HAS MADE THE FUNDAMENTAL DECISION TO NEGOTIATE PEACE WITH ISRAEL BUT THERE IS A LONG PERIOD OF COMPLEX BARGAINING AHEAD SYRIA IS DEMANDING THAT ISRAEL AGREE TO WITHDRAW FROM THE GOLAN HEIGHTS WHICH IT OCCUPIED IN THE 1967 SIXDAY WAR BEFORE IT TELLS MR RABIN WHAT KIND OF PEACE IT WILL AGREE TO ISRAEL WANTS TO KNOW MR ASSAD'S DEFINITION OF PEACE BEFORE IT TALKS ABOUT WITHDRAWAL FROM GOLAN 9312030157 931203 INTERNATIONAL HONG KONG RETAIL SALES UP 10 HONG KONG HONG KONG PROVISIONAL RETAIL SALES JUMPED 10 IN SEPTEMBER FROM THE YEAR EARLIER TO 153 BILLION HONG KONG DOLLARS US198 BILLION ACCORDING TO FIGURES RELEASED BY THE GOVERNMENT THE RISE WAS ATTRIBUTED TO A STRONG GROWTH IN SPENDING ON CLOTHING AND FOOTWEAR AND CONSUMER DURABLE GOODS OTHER THAN MOTOR VEHICLES 9312030156 931203 RACE TO MAKE SUBSTITUTE BLOOD HEATS UP RESEARCHERS AROUND THE WORLD SEE A BIG MARKET BY STEPHEN D MOORE AND TERENCE ROTH SPECIAL TO THE WALL STREET JOURNAL AS HEALTH OFFICIALS IN EUROPE PONDER NEW CONTROLS FOR BLOOD PRODUCTS PRODDED BY YET ANOTHER TAINTEDBLOOD SCANDAL EARLIER THIS YEAR SCIENTISTS ARE CLOSING IN ON WHAT MAY BE THE BEST SAFEGUARDS OF ALL RESEARCHERS AROUND THE WORLD ARE RACING TO COAX SCARCE BLOOD PROTEINS FROM GENETICALLY ENGINEERED BACTERIA AND TO PRODUCE WHAT MANY BELIEVE IS THE ULTIMATE SOLUTION ARTIFICIAL BLOOD THE PROBLEM IS THAT EVEN CAREFULLY TESTED BLOOD IS STILL PERFECTLY CAPABLE OF TRANSMITTING DISEASE SAYS RICHARD DEWOSKIN CHAIRMAN OF NORTHFIELD LABORATORIES INC OF THE US CURRENT LEADER IN THE RACE TO MANUFACTURE ARTIFICIAL BLOOD HOWEVER MUCH YOU TEST THAT UNIT OF BLOOD STILL CARRIES WITH IT THE DISEASE HISTORY OF THE DONOR AND THERE WILL ALWAYS BE POTENTIAL FOR TRANSMITTING UNDISCOVERED DISEASES AS WE'VE LEARNED SO TRAGICALLY THE QUEST FOR ADDED SAFETY HAS TRANSFORMED THE BLOODPRODUCTS BUSINESS INTO A BIOTECHNOLOGY SHOWCASE MOST OF THE RESEARCH ACTION REMAINS CONCENTRATED IN THE US BUT SEVERAL PIONEERING AMERICAN LABS ARE UNITS OF EUROPEAN PHARMACEUTICAL GIANTS ENSURING THAT NEW DISCOVERIES WILL SWIFTLY CROSS THE ATLANTIC MANY SCIENTISTS STILL CONSIDER ARTIFICIAL BLOOD THE HOLY GRAIL OF BLOOD RESEARCH AND AT LEAST HALF A DOZEN PHARMACEUTICAL COMPANIES ARE ENGAGED IN A HIGHSTAKES COMPETITION FOR THE FIRST SUCCESSFUL PRODUCT BULLISH ANALYSTS PREDICT THAT A SURROGATE PRODUCT ABLE TO CARRY OXYGEN IN THE SAME WAY AS WHOLE BLOOD COULD APPEAR BY THE END OF THE DECADE AND EVENTUALLY CAPTURE BETWEEN 20 AND 40 OF THE 20 BILLIONAYEAR WHOLEBLOOD MARKET SOME OBSERVERS REGARD THAT TIMETABLE WITH PLENTY OF SKEPTICISM WE WERE HEARING THE SAME PROMISES 10 YEARS AGO FROM THE COMPANIES WORKING ON ARTIFICIAL BLOOD GRUMBLES OVE BERSEUS DIRECTOR OF A HOSPITALLINKED BLOOD BANK IN OEREBRO SWEDEN IN ADDITION MOST EXPERTS BELIEVE IT WILL BE GENERATIONS BEFORE ARTIFICIAL BLOOD OR GENETICALLY ENGINEERED BLOOD PRODUCTS FULLY REPLACE NATURAL PRODUCTS THE COMPLEX MANUFACTURING PROCESSES ALONE WILL PUSH RETAIL COSTS FAR ABOVE WHAT CONSUMERS PAY FOR BLOOD AND BLOOD PRODUCTS DRAWN FROM THE ARMS OF DONORS BUT PHARMACEUTICAL CONCERNS SEE ONLY A RICH MARKET ON THE HORIZON AND SKEPTICISM DOESN'T FIGURE MUCH INTO THEIR EQUATIONS THE INDUSTRY ALREADY HAS PRODUCED ONE REPLACEMENT FOR PLASMADERIVED PRODUCTS MAJOR DRUG MAKERS HAVE LAUNCHED GENETICALLY ENGINEERED BLOOD PRODUCTS SUCH AS FACTOR VIII THE MAIN CLOTTING PROTEIN IN WHICH HEMOPHILIACS ARE DEFICIENT RECOMBINANT COPIES OF OTHER BLOOD PROTEINS FIGURE PROMINENTLY IN MANY COMPANIES' RESEARCH PIPELINES THE PROCESS FOR PRODUCING RECOMBINANT GENES OR GENESPLICING IN THIS CASE INVOLVES IMPLANTING THE GENE FOR COAGULANT FACTOR VIII INTO BACTERIA SOAKING IN GIANT VATS OF BROTH WHERE THE WONDER BUGS PROCEED TO PRODUCE THE PROTEIN IN ABUNDANT AMOUNTS AS THEY MULTIPLY BUT IT'S A COMPLEX CUTTINGEDGE SCIENCE AND THE NEWGENERATION BLOOD PROTEINS ARE FAR MORE EXPENSIVE THAN THEIR PREDECESSORS AMONG THE PLASMADERIVED PRODUCTS THE ADVANTAGE IS THAT THE NEW PRODUCTS OFFER AN IMMENSE SAFETY PREMIUM BECAUSE THEY AREN'T MADE FROM PLASMA THE HIGHPROTEIN BLOOD COMPONENT THAT CAN TRANSMIT DISEASE AS EASILY AS WHOLE BLOOD THE BIGGEST GENESPLICING BREAKTHROUGHS SO FAR ARE A PAIR OF FACTOR VIIIS RECOMBINATE FROM BAXTER INTERNATIONAL INC AND KOGENATE FROM THE MILES INC UNIT OF BAYER AG BOTH DRUGS WERE APPROVED BY THE US FOOD AND DRUG ADMINISTRATION WITHIN THE PAST 12 MONTHS BUT REMAIN AT RELATIVELY EARLY STAGES OF THEIR GLOBAL INTRODUCTIONS THE DRIVE FOR SAFER PRODUCTS IS PART OF WHY ALL OF US ARE INVOLVED IN RECOMBINANT FACTOR VIII SAYS A SPOKESMAN FOR MILES MILES ESTIMATES THAT GLOBAL SALES OF THE CURRENT PLASMADERIVED FACTOR VIII WILL REACH 850 MILLION THIS YEAR ANALYSTS PREDICT RECOMBINATE AND KOGENATE WILL EACH HIT PEAK SALES OF 250 MILLION TOWARD THE END OF THE 1990S PITFALLS REMAIN WITH HEALTHCARE COSTS UNDER INCREASING PRESSURE WORLDWIDE THE HIGH COST OF RECOMBINANT FACTOR VIII REMAINS A MAJOR HURDLE TO ITS BROADER USE THE ANNUAL COST FOR HEMOPHILIACS OF RECOMBINANT FACTOR VIIIS HAS JUMPED TO ROUGHLY 70000 COMPARED WITH ABOUT 50000 FOR THE PLASMADERIVED VERSIONS ANALYSTS CALCULATE BUT THE GAP COULD NARROW AS INDUSTRY COMPETITION INCREASES AND PRODUCTION METHODS FOR RECOMBINANT PRODUCTS MATURE RECOMBINANT FACTOR VIII HASN'T EXACTLY BEEN AN OVERNIGHT SUCCESS MILES SPENT 12 YEARS AND ABOUT 300 MILLION TO DEVELOP KOGENATE THOUGH THE PROGRAM BEGAN IN 1982 AND HAD HELP FROM GENENTECH INC WHICH CLONED THE FACTOR VIII PROTEIN FOR MILES DEVELOPMENT LANGUISHED UNTIL THE AIDS EPIDEMIC PROVIDED ADDED URGENCY ANALYSTS SAY SAYS GEORGE SCANGOS RESEARCH DIRECTOR FOR MILES'S US BIOTECHNOLOGY ARM LOOKING BACK THE ENTIRE INDUSTRY WAS SOMEWHAT NAIVE ABOUT RECOMBINANT FACTOR VIII IN TERMS OF THE SIZE AND COMPLEXITY OF THE PROTEIN AND HOW IT'S ADMINISTERED THIS HAS BEEN THE MOST TECHNOLOGICALLY DEMANDING BIOTECH PROJECT YET THE RECOMBINANT FACTOR VIIIS ALSO WERE DOGGED BY A BITTER LEGAL BRAWL OVER PATENT RIGHTS THAT DRAGGED THROUGH US COURTS FOR YEARS EARLIER THIS YEAR BAXTER AGREED TO A 105 MILLION SETTLEMENT WITH RHONEPOULENC RORER INC WHICH OWNS RIGHTS TO A KEY PURIFICATION PATENT IN THE PRODUCTION PROCESS FOR RECOMBINANT FACTOR VIII THE MILES SPOKESMAN SAYS THE COMPANY HAS REACHED AN AGREEMENT WITH ALL CONCERNED IN THE PATENT DISPUTE BUT DECLINES TO ELABORATE ANALYSTS ESTIMATE THAT UP TO A HALFDOZEN RECOMBINANT FACTOR VIIIS AND OTHER GENETICALLY ENGINEERED BLOOD PROTEINS COULD BE ON THE MARKET BY THE END OF THE DECADE SWEDEN'S PHARMACIA AB HAS BEGUN EARLY CLINICAL TRIALS OF ITS OWN MODIFIED VIII A 1996 LAUNCH IS POSSIBLE COMPANY OFFICIALS SAY IF CLINICAL TESTS FULFILL THEIR EARLY PROMISE AND PHARMACIA ENCOUNTERS NO PATENT PROBLEMS NOT CONTENT WITH THEIR RECOMBINANT FACTOR VIIIS BOTH MILES AND BAXTER HAVE FORGED LINKS WITH SMALL BIOTECHNOLOGY COMPANIES TO PURSUE AN UNUSUAL APPROACH KNOWN AS GENE THERAPY GEARED TO HEMOPHILIACS WHO ARE BORN WITH DEFECTIVE FACTOR VIII GENES THE PROCESS WOULD IMPLANT A NEW FUNCTIONING GENE IN LIVER OR BLOODVESSEL CELLS THAT COULD ACTIVATE THE BODY'S OWN FACTOR VIII PRODUCTION AND ELIMINATE THE NEED FOR SYNTHETIC MEDICINES DR SCANGOS THE MILES RESEARCH DIRECTOR DESCRIBES GENE THERAPY AS AN EXTENDEDRELEASE DELIVERY SYSTEM FOR FACTOR VIII INSTEAD OF AN INJECTION ONCE A WEEK WE'RE WORKING TOWARD A TREATMENT WHICH COULD LAST A MONTH SIX MONTHS MAYBE A YEAR WE STILL AREN'T SURE AT PRESENT THE THERAPY MUST BE INDIVIDUALIZED FOR EACH PATIENT MAKING IT CUMBERSOME AND EXPENSIVE SCIENTISTS TAKE CELLS FROM THE PATIENT INFECT THEM WITH A HARMLESS VIRUS CARRYING THE MISSING GENE AND THEN REINJECT THE MODIFIED CELLS INTO THE PATIENT BUT EVENTUALLY I'M SURE WE WILL GET TO MORE SOPHISTICATED SYSTEMS WHERE THE MISSING FACTOR VIII GENE COMES IN A LITTLE GLASS VIAL AND ONCE INJECTED IS CAPABLE OF HOMING IN ON THE DESIRED CELLS IN THE BODY DR SCANGOS PREDICTS THE THERAPY HAS WORKED IN EXPERIMENTS ON ANIMALS HE ADDS AND THE TECHNOLOGY IS MOVING EXTRAORDINARILY RAPIDLY BUT THERE STILL ARE A NUMBER OF TECHNICAL HURDLES TO OVERCOME WHICH IF WE'RE LUCKY COULD TAKE THREE OR FOUR YEARS TO SOLVE IF NOT IT COULD BE MORE LIKE 10 TO 12 YEARS IN ANOTHER BLOODPRODUCT VENTURE THE BAYER UNIT HAS ASSEMBLED A FLOCK OF SPECIALLY BRED SHEEP IN SCOTLAND THAT PRODUCE IN THEIR MILK A SYNTHETIC FORM OF A BLOOD PROTEIN CALLED ALPHA ONE ANTITRIPSIN WHICH IS USED TO TREAT CONGENITAL EMPHYSEMA THE GENE TO PRODUCE IT WAS SUCCESSFULLY INSERTED IN A SHEEP EMBRYO AND PASSED ON TO SUBSEQUENT GENERATIONS 9312030155 931203 P&G TO ACQUIRE TISSUE MAKER IN GERMANY VPSCHICKEDANZ PURCHASE VALUED AT 580 MILLION INCLUDES MAJOR BRANDS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO ENTERING THE 7 BILLION EUROPEAN TISSUEPRODUCT MARKET AND CONTINUING ITS OVERSEAS EXPANSION AGREED TO ACQUIRE VPSCHICKEDANZ AG A GERMAN MANUFACTURER OF FACIAL AND TOILET TISSUES THE COMPANIES DIDN'T DISCLOSE TERMS OF THE CASH TRANSACTION BUT PEOPLE FAMILIAR WITH THE SALE VALUED IT AT ABOUT ONE BILLION MARKS 580 MILLION THE MOVE IS P&G'S FIRST VENTURE IN TOILET AND FACIAL TISSUES OUTSIDE NORTH AMERICA THE ACQUISITION WILL GIVE P&G SUCH MAJOR BRANDS AS TEMPO PAPER HANDKERCHIEFS AND BESS TOILET TISSUES WHICH HAVE ABOUT 5 OF THE EUROPEAN MARKET AS WELL AS CAMELIA FEMININEPROTECTION PADS CERTINA ADULTINCONTINENCE PRODUCTS AND DEMAK'UP COTTON PADS USED TO REMOVE MAKEUP THE BRANDS ARE STRONG SELLERS IN GERMANY AND SOME ALSO HAVE A LARGE PRESENCE ELSEWHERE IN EUROPE BECAUSE OF ANTICOMPETITION CONCERNS THE SALE WON'T INCLUDE VPSCHICKEDANZ'S DIAPER BUSINESS WHICH IS TO BE SOLD TO A THIRD PARTY VPSCHICKEDANZ WHICH IS BASED IN NUREMBERG AND EMPLOYS ABOUT 3750 HAD 1992 SALES OF ABOUT 800 MILLION EXCLUDING DIAPERS SALES WERE SLIGHTLY MORE THAN 600 MILLION P&G SAID VPSCHICKEDANZ IS A UNIT OF CLOSELY HELD GUSTAV & GRETE SCHICKEDANZ HOLDING KG A DIVERSIFIED CONCERN BASED IN FUERTH GERMANY WITH INTERESTS IN MAILORDER CATALOGS AND FINANCIAL SERVICES SCHICKEDANZ SAID IT NO LONGER CONSIDERED TISSUE PRODUCTS A CORE BUSINESS A NUMBER OF US AND EUROPEAN COMPANIES PRIMARILY PAPERPRODUCT MAKERS WERE SAID TO HAVE BEEN INTERESTED IN VPSCHICKEDANZ AT LEAST ONE US COMPANY DALLASBASED KIMBERLYCLARK CORP PREVIOUSLY INDICATED AN INTEREST IN THE GERMAN COMPANY AND AGREED TO FORM A JOINT VENTURE WITH IT BUT THE VENTURE FELL APART OVER VARIOUS ISSUES INCLUDING THE EUROPEAN RECESSION SOME ANALYSTS AND INVESTORS QUESTIONED P&G'S PLAN TO ACQUIRE VPSCHICKEDANZ AT A TIME WHEN EUROPE'S ECONOMY REMAINS WEAK MOREOVER THE EUROPEAN TISSUE MARKET IS MARKED BY SOME OVERCAPACITY AND IS QUITE PRICECOMPETITIVE HOWEVER P&G SAID IT SEES A LARGE POTENTIAL MARKET IN EUROPE WHERE PERCAPITA CONSUMPTION OF TISSUES IS ABOUT 20 BELOW US LEVELS ADDITIONALLY P&G SAID IT MAY USE SCHICKEDANZ'S FACILITIES TO INTRODUCE PAPER TOWELS INTO EUROPE WHERE TOWEL CONSUMPTION IS 30 OF US LEVELS P&G MAKES BOUNTY THE NO 1 PAPER TOWEL BRAND IN THE US AS WELL AS THE TOP TOILET TISSUE BRAND CHARMIN AND THE NO 2 FACIAL TISSUE BRAND PUFFS EDWIN L ARTZT CHAIRMAN OF P&G SAID THE ACQUISITION IS PART OF THE COMPANY'S GLOBALIZATION STRATEGY AND WILL INCREASE P&G'S ANNUAL PAPERPRODUCT SALES IN EUROPE BY 18 TO 37 BILLION P&G ALREADY SELLS DISPOSABLE DIAPERS AND FEMININEPROTECTION PRODUCTS IN EUROPE BONITA AUSTIN AN ANALYST WITH LEHMAN BROTHERS SAID P&G IS LIKELY TO UPGRADE VPSCHICKEDANZ'S PRODUCTS BUT THAT WILL INVOLVE PERSUADING EUROPEANS TO PAY MORE FOR AMERICANSTYLE TISSUE WHICH IS SOFTER AND THICKER THE CINCINNATI CONSUMER PRODUCTS COMPANY SAID THE ACQUISITION WILL HAVE A NEUTRAL OR SLIGHTLY POSITIVE EFFECT ON EARNINGS IN THE NEXT 12 MONTHS THE TRANSACTION IS SUBJECT TO APPROVAL BY THE EUROPEAN COMMUNITY IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY P&G STOCK WAS QUOTED AT 5675 UP 125 CENTS 9312030154 931203 BUSINESS BRIEFS HARLEYSVILLE NATIONAL CORP AGREED TO ACQUIRE SECURITY NATIONAL BANK OF POTTSTOWN PA WHICH HAS MORE THAN 36 MILLION IN ASSETS FOR ABOUT 53 MILLION IN HARLEYSVILLE STOCK GTE CORP'S GTE DATA SERVICES INC UNIT SIGNED A MULTIYEAR 22 MILLION CONTRACT TO PROVIDE AN ONLINEBILLINGSERVICES SYSTEM TO MERCURY COMMUNICATIONS LTD A TELECOMMUNICATIONS UNIT OF CABLE & WIRELESS PLC OF LONDON EDO CORP ACQUIRED THE ASSETS OF AUTOMOTIVE NATURAL GAS INC MILTON WIS A PRODUCER OF NATURALGASREFUELING STATIONS WITH ANNUAL SALES OF ABOUT 15 MILLION ARKANSAS BEST CORP'S LARGEST SUBSIDIARY ABF FREIGHT SYSTEM INC WILL INCREASE ITS FREIGHT RATES APPROXIMATELY 45 EFFECTIVE JAN 1 OMNICARE INC AGREED TO BUY CLOSELY HELD ENLOE DRUGS INC A DECATUR ILL PHARMACEUTICALSERVICES COMPANY FOR AN UNDISCLOSED AMOUNT OF CASH EW SCRIPPS CO COMPLETED THE SALE OF ITS MEMPHIS TENN TELEVISION AND RADIO STATIONS TO ATLANTABASED ELLIS COMMUNICATIONS FOR 65 MILLION 9312030153 931203 CONSORTIUM WINS BID FOR A MAJORITY STAKE IN PHILIPPINE SHIPYARD MANILA THE PHILIPPINES A DARKHORSE CONSORTIUM OUTBID BY A SURPRISING 33 MARGIN ITS OPPONENT IN THE PRIVATIZATION OF THE PHILIPPINES'S LARGESTCAPACITY SHIPYARD THE CONSORTIUM LED BY JG SUMMIT HOLDINGS INC OF THE PHILIPPINES BID 203 BILLION PESOS 743 MILLION FOR 8767 OF PHILIPPINE SHIPYARD & ENGINEERING CORP OR PHILSECO A 128ACRE SHIPYARD IN SUBIC BAY THE CONSORTIUM ALSO INCLUDES SINGAPORE'S JURONG SHIPYARD LTD AND SEMBAWANG SHIPYARD LTD THE ONLY OTHER BIDDER A GROUP THAT INCLUDED AN AFFILIATE OF SINGAPORE'S KEPPEL CORP OFFERED 153 BILLION PESOS THE GOVERNMENT HAD SET AN INDICATIVE PRICE OF 13 BILLION PESOS FOR THE SHIPYARD THE RESULTS WON'T BE OFFICIAL UNTIL THE GOVERNMENT'S COMMITTEE ON PRIVATIZATION ENDORSES THE BIDDING PROBABLY WITHIN A FEW DAYS EVEN THEN JAPAN'S KAWASAKI HEAVY INDUSTRIES LTD PHILSECO'S MINORITY HOLDER HAS 30 DAYS TO EXERCISE AN OPTION TO TOP THE BID BY 5 DORIS HO CHIEF EXECUTIVE OFFICER OF MAGSAYSAY LINES INC KAWASAKI'S PHILIPPINE PARTNER DIDN'T WANT TO DISCUSS HER COMPANY'S PLANS WE'RE BASICALLY JUST THINKING ABOUT IT SHE SAID THEY MAY HAVE A LOT TO THINK ABOUT MANY ANALYSTS WERE SURPRISED AT THE SIZE OF THE CONSORTIUM'S BID DESPITE THE PHILSECO YARD'S 300000DEADWEIGHTTON DOCK WHICH DWARFS THE 20000TON CAPACITY OF ITS BIGGEST LOCAL RIVALS I THOUGHT 15 BILLION PESOS WAS TOPS SAID PHILSECO PRESIDENT FELICIANO SALONGA BASED ON OUR PAST TRACK RECORD THE HIGHER BID CERTAINLY LOOKS A LOT BUT THESE INVESTORS ARE BUYING THE POTENTIAL SINGAPOREBASED ANALYSTS SAID THE YARD WON'T IMMEDIATELY GENERATE ENOUGH REVENUE OR PROFIT TO JUSTIFY SUCH A PRICE IT ISN'T COMMERCIALLY FEASIBLE TO DO ANY MAJOR WORK AT THE YARD IN THE MEDIUM TERM ONE ANALYST SAID BECAUSE THE YARD'S MACHINERY AND EQUIPMENT MUST BE UPGRADED THESE ANALYSTS ADDED HOWEVER THAT THE LONGERTERM PROSPECTS ARE BRIGHT 9312030152 931203 WEATHERFORD PREFERRED SHARES HOUSTON WEATHERFORD INTERNATIONAL INC SAID 14012 OF ITS 2625 CONVERTIBLE EXCHANGEABLE CUMULATIVE PREFERRED SHARES WERE REDEEMED AT 25263 A SHARE FOR A TOTAL OF 353985 THE ENERGY SERVICES AND MANUFACTURING COMPANY SAID HOLDERS OF THE REMAINING 571693 PREFERRED SHARES CONVERTED THEIR STOCK INTO ABOUT 1555000 COMMON SHARES AFTER THE TUESDAY REDEMPTION DEADLINE AS OF SEPT 30 WEATHERFORD HAD 459 MILLION COMMON SHARES OUTSTANDING 9312030151 931203 SKIRESORT FEES TO US ARE FAULTED IN REPORT BEAVER CREEK COLO A STUDY COMMISSIONED BY THE US DEPARTMENT OF AGRICULTURE SHOWS THAT LARGE SKI RESORTS PAY TOO LITTLE IN FEES FOR THE USE OF FOREST SERVICE LAND WHILE SMALL RESORTS PAY TOO MUCH A DEPARTMENT OFFICIAL SAID ASSISTANT AGRICULTURE SECRETARY JIM LYONS SAID HE WILL BEGIN MEETING TODAY WITH SKIAREA OPERATORS TO RESTRUCTURE THE 16 MILLION IN FEES PAID ANNUALLY BY 137 RESORTS HE SAID HE HOPES A NEW FEE STRUCTURE CAN BE IN PLACE BY THE BEGINNING OF THE 19941995 SKI SEASON SPEAKING AT A SKIINGINDUSTRY CONFERENCE AT THIS SKI RESORT MR LYONS SAID THE GOAL OF THE ADMINISTRATION WILL BE TO DETERMINE FAIR MARKET VALUE FOR THE LAND THAT SKI AREAS LEASE WHICH COULD RAISE THE TOTAL AMOUNT OF MONEY COLLECTED EACH YEAR JON REVEAL VICE PRESIDENT OF SKI OPERATIONS FOR ASPEN SKIING CO SAID LOWER FEES WOULD HELP SMALLER AREAS STAY IN BUSINESS BUT HE SAID HE COULDN'T PREDICT IF HIGHER FEES AT BIG RESORTS SUCH AS ASPEN WOULD RESULT IN HIGHER LIFTTICKET PRICES 9312030150 931203 BED BATH & BEYOND SALES RISE SPRINGFIELD NJ BED BATH & BEYOND INC SAID NOVEMBER SALES ROSE ABOUT 33 TO 354 MILLION FROM 266 MILLION WHILE COMPARABLESTORE SALES ROSE 13 SALES FOR THE THIRD QUARTER ROSE 43 TO 809 MILLION AND SALES AT STORES OPEN MORE THAN A YEAR ROSE 13 THE COMPANY OPERATES A CHAIN OF SUPERSTORES THAT SELL HOME FURNISHINGS 9312030148 931203 WHO'S NEWS STUDENT LOAN MARKETING ASSOCIATION STUDENT LOAN MARKETING ASSOCIATION WASHINGTON THIS STUDENTLOAN FINANCIAL INTERMEDIARY NAMED DENISE M BOUTROSS 41 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THOSE DUTIES HAD BEEN PERFORMED BY THE CHIEF OPERATING OFFICER ALBERT L LORD WHO RESIGNED IN OCTOBER MS BOUTROSS HAD BEEN EXECUTIVE VICE PRESIDENT AND GLOBAL HEAD OF DERIVATIVES AT DKB FINANCIAL PRODUCTS INC ALSO TWO SENIOR VICE PRESIDENTS WERE NAMED EXECUTIVE VICE PRESIDENTS ROBERT D FRIEDHOFF 38 SERVICING AND LYDIA M MARSHALL 44 MARKETING 9312030147 931203 INTERNATIONAL WORLD ECONOMY AS GATT NEGOTIATORS LABOR FOR ACCORD THE QUESTION ARISES WHAT IF THEY FAIL BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ONE COMMON DESCRIPTION OF GLOBAL TRADE TALKS COMPARES THEM TO RIDING A BICYCLE IF YOU DON'T KEEP PEDALING FORWARD YOU'LL FALL DOWN AND GET HURT PERHAPS FEAR OF FALLING EXPLAINS WHY NEGOTIATORS SUDDENLY ARE RUSHING TO WRITE A NEW TRADE TREATY BEFORE A DEC 15 DEADLINE AFTER SEVEN YEARS OF TEDIOUS MEETINGS UNDER THE AUSPICES OF THE 116NATION GENERAL AGREEMENT ON TARIFFS AND TRADE A FINAL DRAFT MAY BE READY NEXT WEEK BUT HOW COMPREHENSIVE IT WILL BE REMAINS UNCLEAR AND THE COMPLEX POLITICAL AND ECONOMIC ISSUES IT MUST RESOLVE LEAVES FAILURE ALL TOO POSSIBLE SO IF TALKS DO COLLAPSE FOR SOME REASON WOULD WORLD TRADE TRULY SUFFER OR WOULD IT GLIDE ALONG AT THE SAME OLD SPEED NO FASTER PERHAPS BUT AT SOMETHING LIKE THE HEALTHY 7 GROWTH RATE OF LAST YEAR ACCORDING TO FRED BERGSTEN THE PERIPATETIC ECONOMIST WHO MADE THE BICYCLE ANALOGY PART OF THE TRADE JARGON AND MANY OF HIS PEERS FAILURE WOULD IN FACT BRING PAIN AND LOTS OF IT THEY SAY INTERNATIONAL TRADE ISSUES HAVE GROWN SO COMPLEX THAT ONLY A BROAD NEW AGREEMENT CAN PREVENT RANCOROUS NEW DISPUTES OF GREAT POTENTIAL HARM WITHOUT AN UPDATED AND UNIVERSAL SET OF RULES IN PLACE NATIONS WITH TRADE COMPLAINTS COULD RESORT TO PUNITIVE ACTIONS AND REACTIONS WHENEVER THEY FEEL SOMEHOW CHEATED THAT WOULD STIFLE THE ECONOMIC GROWTH THEY NEED SO BADLY IT CAN'T BE BUSINESS AS USUAL IF THERE IS NO NEW AGREEMENT ASSERTS MR BERGSTEN DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS A THINK TANK HERE THAT'S PARTLY DUE TO A COUNTRY THAT NO LONGER EXISTS THE FORMER SOVIET UNION IN COLD WAR DAYS ALLIED INDUSTRIAL NATIONS OFTEN GLOSSED OVER ECONOMIC SQUABBLES THEIR SECURITY NEEDS KEPT THEM FROM PUSHING DISPUTES TO THE OUTER LIMITS BUT THAT RESTRAINT IS GONE NOW THE EXPERTS SAY NO NATION THE US ABOVE ALL SEEMS WILLING TO SACRIFICE POSSIBLE COMMERCIAL GAIN FOR THE SAKE OF SOME GREATER INTERNATIONAL GOOD INSTEAD EACH GATT MEMBER DEMANDS ITS FULL SHARE AND IS READY TO ACT ACCORDINGLY THIS CONTENTIOUS MOOD IS AGGRAVATED BY THE SORRY STATE OF SO MANY LEADING ECONOMIES THE EUROPEAN COMMUNITY AND JAPAN ARE SUNK DEEP INTO RECESSION THE US IS RECOVERING BUT SLOWLY AS THE RECENT CONGRESSIONAL FIGHT OVER TRADE WITH MEXICO SHOWED THERE'S WIDESPREAD FEAR THAT FOREIGN COMMERCE DESTROYS MORE JOBS THAN IT CREATES NO SPIRIT OF GENEROSITY WILL SOFTEN ECONOMIC QUARRELS IN THE YEARS AHEAD WITHOUT A COMPREHENSIVE GATT AGREEMENT THE EXPERTS SAY THINGS CAN ONLY GET WORSE BUT THE LESS COMPLETE IT IS THEY WARN THE FEWER QUARRELS IT WILL PREVENT ONE REASON IS THAT THE POSTCOLD WAR WORLD HAS SEEN THREE DISTINCT TRADING GROUPS EMERGE EUROPE THE AMERICAS AND AN ASIA THAT MAY NOT INCLUDE THE US FOREVER WITHOUT NEW GLOBAL RULES THESE COULD BECOME RIVAL BLOCS DEFENSIVE AND ANTAGONISTIC TOWARD EACH OTHER TRADE AND INVESTMENT THEN WOULD BE DISTORTED AND INHIBITED THAT WOULD BE VERY DANGEROUS THROWING US BACK TO A SYSTEM OF PREFERENTIAL TRADING AGREEMENTS SAYS JEFFREY ROSENSWEIG OF THE EMORY BUSINESS SCHOOL IN ATLANTA HE THINKS SUCH A DISINTEGRATION INTO TRADING BLOCS WOULD CAUSE GREAT ECONOMIC WASTE THROUGH SUCH ACTIONS AS PROTECTING INEFFICIENT PRODUCERS MICHAEL BORRUS OF THE BERKELEY ROUNDTABLE ON THE INTERNATIONAL ECONOMY WORRIES THE US MIGHT SOMEDAY LOSE ITS KEY ASIAN ROLE IN A GATTLESS WORLD OF THREE HOSTILE BLOCS ALTHOUGH ASIANS NEED THE AMERICAN MARKET HE SAYS THE US DOESN'T USE THAT POWER EFFECTIVELY TO EXPAND ITS OWN ECONOMIC PLACE THERE A VIEW SHARED BY BRIE COLLEAGUE LAURA TYSON ON LEAVE AS PRESIDENT CLINTON'S SENIOR ECONOMIC ADVISER THAT'S WHY OPEN AND EQUAL ACCESS REMAINS THE KEY TO EXPANDING TRADE MR BORRUS SAYS GLOBAL ECONOMIC CHANGES MAKE IT WORSE HOWEVER IMPERFECTLY THE PENDING GATT DEAL WOULD BE THE FIRST TO REGULATE THE EXPANDING COMMERCE IN HIGHLY SENSITIVE AGRICULTURE AND SERVICES JAPAN'S STUBBORN EFFORTS TO PROTECT RICE FARMERS AND FRANCE ITS MOVIE MAKERS SHOW HOW TOUCHY THESE ISSUES CAN BE WITHOUT BETTER RULES SUCH DISPUTES CAN ONLY GROW IN VOLUME AND INTENSITY FINALLY FAILURE WOULD MEAN LOST OPPORTUNITIES ACCORDING TO MICKEY KANTOR WASHINGTON'S CHIEF NEGOTIATOR A SUCCESSFUL GATT WOULD INCREASE WORLD ECONOMIC GROWTH BY 6 TRILLION OVER THE NEXT DECADE AND CREATE TWO MILLION US JOBS OVER 13 YEARS SUCH NUMBERS INCLUDE GREAT GUESSWORK BUT ECONOMISTS GENERALLY AGREE THAT A BROAD GATT AGREEMENT WILL PRODUCE NEW WEALTH THEY SEE ONLY LOSSES IF THE EFFORT FAILS 9312030146 931203 JAPAN SAYS YEN'S RISE CAUSED DROP IN EXPORTS OF INDUSTRIAL PLANTS SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S INDUSTRIALPLANT EXPORTS IN THE SIX MONTHS THROUGH SEPT 30 FELL 13 FROM THE YEAR BEFORE TO 478 PLANTS REFLECTING THE YEN'S APPRECIATION WHICH MADE JAPAN'S EXPORTS MORE EXPENSIVE FOR FOREIGN BUYERS THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REPORTED THE TOTAL VALUE OF PLANT EXPORTS REMAINED AROUND THE SAME LEVEL AS THE YEAREARLIER PERIOD AT 558 BILLION DOWN ONLY 04 THE REPORT SAID 14 LARGE PLANTS WHICH COST 100 MILLION AND MORE CONTRIBUTED TO PUSHING UP THE OVERALL VALUE BUT IT OFTEN TAKES SEVERAL MONTHS FOR A LARGESCALE PLANTS TO BE EXPORTED AFTER SIGNING OF THE CONTRACT AND 13 OF THE LARGE PLANTS' CONTRACTS WERE SIGNED LAST YEAR BEFORE THE YEN BEGAN TO STRENGTHEN THE REPORT SAID THE NUMBER OF SMALLER CONTRACTS THAT WERE SIGNED MOSTLY THIS YEAR DECLINED DUE TO THE APPRECIATION BY THE YEN MITI SAID THE YEN'S STRENGTHENING ALSO ENCOURAGED JAPANESE PLANT ENGINEERING COMPANIES TO INCREASE PROCUREMENT OF CONSTRUCTION MATERIALS OVERSEAS MITI SAID OF THE TOTAL 762 BILLION CONTRACTS FOR PLANT EXPORTS SIGNED DURING THE APRILSEPTEMBER PERIOD 26 OF CONSTRUCTION MATERIALS ARE TO BE PROCURED OVERSEAS THE REPORT SAID BREAKDOWN OF PLANT EXPORTS BY DESTINATION SHOWS THAT ASIA ACCOUNTED FOR 314 CASES VALUED AT 352 BILLION OR 63 OF THE OVERALL PLANT EXPORTS EXPORTS TO LATIN AMERICA TOTALED 34 CASES AND 270 MILLION 9312030145 931203 CORRECTIONS & AMPLIFICATIONS GENERAL MOTORS CORP'S CHEVROLET DIVISION SOLD 293 MORE CARS AND TRUCKS IN MIDNOVEMBER THAN A YEAR EARLIER THE COMPANY'S OLDSMOBILE DIVISION SOLD 273 MORE UNITS AND THE SATURN UNIT POSTED A 133 SALES DECLINE AN ARTICLE FRIDAY NOV 26 INCORRECTLY REPORTED THAT CHEVROLET'S SALES ROSE 91 OLDSMOBILE'S FELL 77 AND SATURN'S ROSE 195 9312030144 931203 UK'S LADBROKE SEEKS NEW CHIEF EXECUTIVE FOR HILTON SUBSIDIARY SPECIAL TO THE WALL STREET JOURNAL LONDON UK HOTELS AND LEISURE COMPANY LADBROKE GROUP PLC SAID YESTERDAY THAT IT IS SEEKING A NEW CHIEF EXECUTIVE OFFICER FOR ITS HILTON INTERNATIONAL HOTELS SUBSIDIARY THE JOB IS CURRENTLY HELD BY MICHAEL HIRST WHO IS ALSO CHAIRMAN OF THE UNIT LADBROKE SAID THAT THE SEARCH IS WELL ADVANCED THE COMPANY ALSO SAID THE MOVE IS DESIGNED TO STRENGTHEN THE SENIOR MANAGEMENT OF THE GROUP SO THAT IT IS WELLPOSITIONED TO TAKE FULL ADVANTAGE OF ANTICIPATED IMPROVEMENTS IN THE WORLD ECONOMY LADBROKE SAID THAT DISCUSSIONS WITH MR HIRST OVER HIS FUTURE ROLE ARE PROCEEDING AMICABLY MR HIRST MEANWHILE RECENTLY SOLD 125000 LADBROKE SHARES MORE THAN HALF OF HIS HOLDINGS LADBROKE SAID THE SALE WAS TOTALLY UNCONNECTED WITH THE DISCUSSIONS AND HAD TO DO WITH MR HIRST'S PERSONAL FINANCIAL PLANNING LADBROKE OPERATES BETTING PARLORS AS WELL AS RETAIL HOMEIMPROVEMENT STORES UNDER THE NAME OF TEXAS HOMECARE 9312030143 931203 CARREGISTRATION DROP CONTINUES IN FRANCE SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH CAR REGISTRATIONS IN NOVEMBER FELL 12 FROM THE YEAREARLIER LEVEL FOR A DECLINE OF 167 IN THE FIRST 11 MONTHS OF 1993 ACCORDING TO PROVISIONAL FIGURES RELEASED BY THE AUTO MANUFACTURERS ASSOCIATION MEANWHILE FRENCH CAR PRODUCTION SLUMPED 32 IN OCTOBER FROM A YEAR EARLIER BRINGING THE DECLINE OVER THE FIRST 10 MONTHS OF THE YEAR TO 152 ACCORDING TO AUTO INDUSTRY FIGURES RELEASED YESTERDAY EXPORTS FELL 26 IN OCTOBER AND 125 FOR THE FIRST 10 MONTHS OF THE YEAR CAR REGISTRATION FIGURES SHOW THAT RENAULT SA AND PSA PEUGEOT CITROEN SA SUSTAINED THE BIGGEST DROPS IN NOVEMBER TO THE BENEFIT OF FOREIGN MANUFACTURERS THE PEUGEOT CITROEN GROUP'S REGISTRATIONS FELL BY 138 IN NOVEMBER TO 46100 GIVING A MARKET SHARE OF 293 REGISTRATIONS OF RENAULT CARS FELL 15 TO 45200 FOR A MARKET SHARE OF 287 REGISTRATIONS OF IMPORTED CARS WERE DOWN ONLY 76 IN NOVEMBER THEIR MARKET SHARE WAS 42 9312030142 931203 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK GARY I FRIEND 38 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT GOVERNMENT RELATIONS AND MARKETING OF THIS BUSINESSINFORMATION SERVICES COMPANY MR FRIEND WAS PREVIOUSLY DIRECTOR GLOBAL GOVERNMENT MARKETING AND POLICY FOR THE COMPANY ALSO REID H GEARHART 38 WAS NAMED VICE PRESIDENT COMMUNICATIONS A NEW POSITION MR GEARHART HAD BEEN ASSISTANT VICE PRESIDENT COMMUNICATIONS 9312030141 931203 GLOBAL NATURAL RESOURCES WELL HOUSTON GLOBAL NATURAL RESOURCES INC SAID IT DISCOVERED NATURAL GAS AT A WELL IN THE HIGH ISLAND BLOCK 23L ABOUT 40 MILES EAST OF GALVESTON TEXAS THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID GAS FLOWED AT THE RATE OF 19 MILLION CUBIC FEET A DAY ALONG WITH 400 BARRELS OF CONDENSATE THROUGH OPENINGS OF VARIOUS SIZES AT DEPTHS RANGING FROM 12440 TO 13100 FEET GLOBAL IS THE OPERATOR OF THE WELL AND OWNS A 50 INTEREST THE REMAINDER IS OWNED BY THREE OTHER INVESTORS 9312030140 931203 FINANCING BUSINESS FLETCHER CHALLENGE CANADA LTD FLETCHER CHALLENGE CANADA LTD SAID ITS TIMBERWEST FOREST LTD UNIT WILL OFFER TO THE PUBLIC A 49 STAKE IN THE UNIT FOR A TOTAL OF 1976 MILLION CANADIAN DOLLARS US1482 MILLION THE RECENTLY CREATED UNIT WHICH WILL ACQUIRE MOST OF FLETCHER'S LOGGING AND LUMBER OPERATIONS WILL ISSUE 152 MILLION COMMON SHARES AT C13 EACH THE OFFERING WILL BE UNDERWRITTEN BY A SYNDICATE OF CANADIAN SECURITIES DEALERS CLOSING IS EXPECTED AROUND DEC 15 FLETCHER CHALLENGE CANADA VANCOUVER BRITISH COLUMBIA IS A PUBLICLY TRADED UNIT OF FLETCHER CHALLENGE LTD NEW ZEALAND THE CANADIAN FORESTPRODUCTS COMPANY DISCLOSED PLANS FOR THE TIMBERWEST OFFERING IN OCTOBER BUT HADN'T SET TERMS 9312030139 931203 LETTERS TO THE EDITOR A LAND OF PROMISE FOR BUSINESS VENTURES YOUR OCT 21 ARTICLE MEXICAN SMALLBUSINESS OWNERS SAY STIMULUS PLAN IGNORES THEIR PROBLEMS IN WHICH WE ARE QUOTED ALTHOUGH ACCURATE OVERALL PRESENTS A RATHER ONESIDED PORTRAYAL OF OUR VIEWS ALTHOUGH THE PACTO ECONOMIC PLAN DOES NOT DIRECTLY ADDRESS THE LACK OF COMPETITIVE FINANCING FOR MEDIUM AND SMALL BUSINESSES IT WILL CERTAINLY STIMULATE THE ECONOMY THROUGH OTHER MEASURES THIS WILL MEAN BETTER PERFORMANCE FOR ALL BUSINESSES THE PROBLEM FOR SMALL AND MEDIUMSIZE BUSINESSES WILL BE HOW TO FINANCE GROWTH BOTH OF US DECIDED TO LEAVE JOBS IN THE US IN ORDER TO RETURN TO MEXICO AND OPEN OUR BUSINESS AS A RESULT OF THE DEREGULATION ECONOMIC OPENING INCREASING PRICE STABILITY AND IMMENSE IMPROVEMENT IN THE QUALITY OF GOVERNMENT THAT HAS TAKEN PLACE SINCE THE LATE '80S THE CORRUPTION AND RED TAPE WE HAVE FACED AS ENTREPRENEURS HAS BEEN AT A PETTY BUREAUCRAT LEVEL WHENEVER WE'VE MANAGED TO GAIN ACCESS TO HIGHER LEVELS OF GOVERNMENT WE'VE FOUND RECEPTIVE PUBLIC SERVANTS WILLING TO MAKE THINGS WORK THIS IS A MAJOR BREAK WITH THE PAST OUR PROBLEM WITH MEXICAN SOCIAL SECURITY IMSS WAS A RESULT OF ITS INEFFICIENT MANAGEMENT RATHER THAN CORRUPT BEHAVIOR FOR MORE THAN TWO YEARS WE RECEIVED AND HAD TO REPLY TO COLLECTION BILLINGS FOR EMPLOYEES WHO HAD LEFT OUR COMPANY LONG BEFORE THE FIRST BILL CAME ALONG REPLYING TO THIS INCORRECT BILLING WAS EXPENSIVE AND TIME CONSUMING BUT WE NEVER FACED A BRIBE REQUEST FROM THE IMSS THEIR EXPLANATION WAS THAT THEY HAD MORE THAN A 12MONTH LAG IN FEEDING INFORMATION TO THEIR COMPUTERS ALTHOUGH MUCH HAS TO BE DONE TO IMPROVE PETTY CORRUPTION OVERREGULATION AND PROBLEMS CREATED BY LACK OF INFRASTRUCTURE CONSIDERABLE PROGRESS HAS BEEN MADE MOST IMPORTANT THE TREND TO IMPROVEMENT CONTINUES WE BELIEVE MEXICO IS ONE OF THE MOST PROMISING PLACES IN WHICH TO DO BUSINESS IN THE WORLD 9312030138 931203 TECHNOLOGY & HEALTH MICROSOFT ENTERS KIDS' SOFTWARE MARKET WITH PROGRAMS FOR HOMECOMPUTER USE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP IS INVADING THE BOOMING MARKET FOR CHILDREN'S SOFTWARE PART OF ITS NEW PUSH TO SELL PROGRAMS FOR HOMECOMPUTER USERS THE REDMOND WASH SOFTWARE CONCERN SAID IT WILL FORMALLY ANNOUNCE ITS FORAY INTO KIDS' SOFTWARE ON TUESDAY WHEN IT INTRODUCES A WRITING PROGRAM AND AN ART PROGRAM FOR CHILDREN AGES 8 TO 14 TO WOO KIDS AND PARENTS MICROSOFT HAS PLOTTED SEVERAL NOVEL MARKETING TACTICS A PLAN TO SELL THROUGH THE SOFTWARE EQUIVALENT OF TUPPERWARE PARTIES FOR EXAMPLE AND ANOTHER TO PEDDLE KIDS' SOFTWARE OVER TELEVISION HOMESHOPPING NETWORKS MICROSOFT HAS BEEN ABSENT FROM THE RAPIDLY GROWING CHILDREN'S SOFTWARE MARKET WHERE COMPANIES SUCH AS BRODERBUND SOFTWARE INC AND ELECTRONIC ARTS INC HAVE CARVED OUT SIGNIFICANT BUSINESS UNTIL NOW KIDS' SOFTWARE WAS TOO SMALL TO BE ON OUR RADAR SCREENS SAID KRIS FORBES A MANAGER OF MICROSOFT'S NEW KIDS PRODUCT UNIT BUT WE SAW THAT THIS COULD REALLY BE THE WAY INTO THE HOME AND THE HOME IS WHERE THE GROWTH IS THE PUSH INTO CHILDREN'S MARKETS IS PART OF MICROSOFT'S EFFORT TO ENTER MARKETS THAT CAN OFFSET SLOWING GROWTH IN ITS TRADITIONAL ARENAS MICROSOFT HAS TARGETED HOMEPC USERS WITH A BROAD LINE OF PRODUCTS MARKETED UNDER THE NAME MICROSOFT HOME AMONG OTHER SOFTWARE IN THE HOME PRODUCT LINE GAME ENCYCLOPEDIA DESKTOP PUBLISHING AND PERSONALFINANCE PROGRAMS MICROSOFT'S FIRST CHILDREN'S OFFERING CALLED CREATIVE WRITER COMBINES FEATURES OF WORDPROCESSING AND DESKTOP PUBLISHING CAPABILITIES IN THE 6495 PROGRAM A PURPLE BUCKTOOTHED CARTOON CHARACTER NAMED MCZEE GUIDES THE USER THROUGH TASKS SUCH AS WRITING TEXT CHOOSING TYPEFACES FOR HEADLINES LAYING OUT NEWSLETTERS AND PRINTING BANNERS THE OTHER PROGRAM FINE ARTIST HELPS CHILDREN CREATE COMPUTER ARTWORK MICROSOFT QUIETLY BEGAN SELLING THE WRITING PROGRAM LATE LAST MONTH IN A FEW SOFTWARE STORES IT PLANS TO SHIP THE 6495 ART PROGRAM NEXT YEAR BUT THE REAL MARKETING PUSH WILL BEGIN THIS MONTH WITH A LARGE DIRECTMARKET MAILING AND TV SPOTS ON ABOUT A DOZEN CABLE CHANNELS MICROSOFT SAYS IT HAS ALSO AGREED TO SELL ITS KIDS' SOFTWARE LATER THIS MONTH OVER QVC NETWORK INC'S TV HOMESHOPPING CHANNEL ANOTHER MARKETING STRATAGEM THE FAMILY TECHNOLOGY NIGHT OR WHAT MICROSOFT'S MS FORBES CALLS THE TUPPERWARE MODEL OF MARKETING UNDER THE PROGRAM MICROSOFT EMPLOYEES WILL RUN FREE EVENING COMPUTER SEMINARS FOR PARENTS AND TEACHERS FEATURING THE COMPANY'S CHILDREN'S SOFTWARE MICROSOFT ALSO PLANS TO UNVEIL TUESDAY A NEW VERSION OF ITS PERSONALFINANCE SOFTWARE MICROSOFT MONEY THAT CONTAINS A FEATURE THAT ENABLES CONSUMERS TO USE THEIR PCS TO DO LIMITED BANKING TASKS SUCH AS FUND TRANSFERS BETWEEN ACCOUNTS THE HOMEBANKING FEATURE WILL INITIALLY BE USEFUL ONLY TO CONSUMERS WITH ACCOUNTS AT THREE REGIONAL BANKS THAT HAVE AGREED TO PARTICIPATE IN THE SERVICE US BANCORP FIRST NATIONAL BANK OF CHICAGO AND MICHIGAN NATIONAL BANK BUT MICROSOFT SAYS IT IS NEGOTIATING SIMILAR AGREEMENTS WITH OTHER BANKS 9312030137 931203 GANTOS REPORTS LOWER SALES SALES FOR THE 43 WEEKS ENDED NOV 27 WERE 1605 MILLION DOWN 9 SALES FOR STORES OPEN THROUGHOUT BOTH PERIODS DECREASED 9 THE WOMEN'S APPAREL CONCERN ADJUSTED ITS SALES FIGURES TO EXCLUDE SALES FROM THE 41 STORES IT BEGAN CLOSING LAST MONTH 9312030136 931203 DRESDNER BANK HYPOBANK POST HIGHER PROFITS SPECIAL TO THE WALL STREET JOURNAL FRANKFURT TRIPLEDIGIT GROWTH IN OWNACCOUNT TRADING EARNINGS PUSHED UP OPERATING PROFIT AT BOTH DRESDNER BANK AG AND BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG HYPOBANK THE TWO BANKS WHICH RELEASED 10MONTH EARNINGS DATA THURSDAY ALSO JOINED THE RANKS OF GERMAN FINANCIAL INSTITUTIONS THAT HAVE EITHER SAID THEY WILL INCREASE THEIR 1993 DIVIDEND OR SAID A DIVIDEND INCREASE IS LIKELY HYPOBANK ANNOUNCED IT WOULD INCREASE ITS 1993 DIVIDEND TO 145 MARKS FROM 13 MARKS A YEAR EARLIER ABOUT ONE MARK OF THE INCREASE IS BECAUSE OF CHANGES IN THE GERMAN CORPORATETAX STRUCTURE DRESDNER BANK WAS LESS DIRECT BUT JUERGEN SARRAZIN CHAIRMAN OF DRESDNER'S MANAGEMENT BOARD SAID THAT FROM A CURRENT STANDPOINT THE BANK DOES WANT TO PASS ON THE SAVINGS TO SHAREHOLDERS THAT WOULD MEAN A ONEMARK INCREASE TO 13 MARKS DRESDNER BANK GERMANY'S SECONDLARGEST BANK RELIED HEAVILY ON ITS FIXEDINCOME TRADING DIVISION WHERE IT SAID BOTH TURNOVER AND PROFIT INCREASED STRONGLY THE BANK'S PORTFOLIO OF FIXEDINCOME SECURITIES ALSO EXPANDED 54 FROM THE END OF DECEMBER TO 556 BILLION MARKS 3229 BILLION ON THE WHOLE GROUP TRADING PROFIT SURGED 129 OVER 10/12THS OF THE FULL 1992 RESULT TO 536 MILLION MARKS OPERATING PROFIT CLIMBED A MORE MODEST 16 TO 16 BILLION MARKS AT HYPOBANK SECURITIES TRADING ALSO WAS MORE IMPORTANT THAN FOREIGNEXCHANGE TURNOVER IN THE 214 JUMP IN TRADING PROFIT OVER 10/12THS OF FULL1992 RESULTS TO 196 MILLION MARKS OPERATING PROFIT ROSE 28 TO 826 MILLION MARKS NEITHER BANK COMPARED ALL ELEMENTS IN ITS EARNINGS TO ABSOLUTE 10MONTH EARNINGS FROM 1992 ALTHOUGH DRESDNER DID SAY OPERATING PROFIT INCREASED 225 ON THAT BASIS BECAUSE OF A CHANGE IN BANK REPORTING PRACTICES THIS YEAR RESULTS RELEASED AT THIS TIME LAST YEAR AREN'T DIRECTLY COMPARABLE BASED ON A 10/12THS COMPARISON RESULTS WERE BROADLY IN LINE WITH THOSE REPORTED BY COMMERZBANK AND BERLINER HANDELS UND FRANKFURTER BANK BHFBANK DURING THE PAST WEEK COMMERZBANK EARNINGS ROSE 18 AND BHF EARNINGS ROSE 20 ON AN ABSOLUTE BASIS COMMERZBANK RESULTS CLIMBED AN IMPRESSIVE 52 DRESDNER'S EARNINGS WERE SOMEWHAT BETTER THAN WE WERE EXPECTING WHILE HYPOBANK'S OPERATING PROFIT WAS IN LINE TO SLIGHTLY BETTER THAN FORECAST SAID ROBERT LAW BANKING ANALYST WITH LEHMAN BROTHERS INTERNATIONAL IN LONDON HE SAID HE HAD EXPECTED DRESDNER'S PROFIT TO CLIMB TO ONLY 145 BILLION MARKS BECAUSE OF INCREASED PROVISIONING FOR LOANS INSTEAD THE BANK KEPT THE SAME PACE IT SHOWED IN THE FIRST SIX MONTHS OF THE YEAR OTHER BANKS SUCH AS BHFBANK SAID THEY PICKED UP THE PACE OF PROVISIONING IN LIGHT OF ECONOMIC CONDITIONS RISK PROVISIONING INCREASED 24 AT DRESDNER BANK TO 125 BILLION MARKS AND 26 AT HYPOBANK TO 923 MILLION MARKS DRESDNER'S MR SARRAZIN SAID THE GROUP'S RISK PROVISIONING EQUALS 072 OF OUTSTANDING LENDING VOLUME UP 011 PERCENTAGE POINT FROM A YEAR EARLIER THE ACTUAL BADLOAN RATIO HAS BEEN 0203 OVER THE LONGER TERM BUT HAS RISEN TO 06 FOR THE PAST FIVE YEARS AT BOTH BANKS THE EARNINGS FIGURES NO MATTER HOW YOU LOOK AT THEM ARE STRONG INCREASES MR LAW ADDED 9312030135 931203 UTILITIES REGULATIONS FACE OVERHAUL IN CALIFORNIA CALIFORNIA GOV PETE WILSON PROPOSED TO OVERHAUL STATE REGULATION OF ELECTRIC AND NATURALGAS UTILITIES BY CONSOLIDATING OVERSIGHT AGENCIES AND CALLING FOR LESS ADVERSARIAL HEARINGS ON CONSTRUCTION OF NEW POWER PLANTS THE REFORM PACKAGE FIRST MENTIONED IN THE GOVERNOR'S 1994 BUDGET INCLUDES ABOLISHING THE STATE'S ENERGY COMMISSION AND REORGANIZING THE PUBLIC UTILITIES COMMISSION TO ENCOURAGE NEGOTIATION RATHER THAN FORMAL COURTROOM PROCEEDINGS THE GOAL ACCORDING TO MR WILSON IS TO ELIMINATE OVERLY BURDENSOME AND DUPLICATIVE REGULATION WHILE INCREASING RELIANCE ON MARKET FORCES TO DETERMINE GENERATION AND TRANSMISSION OF POWER THE PROPOSAL IS SUBJECT TO APPROVAL BY STATE LAWMAKERS A SPOKESMAN FOR SCECORP A ROSEMEAD CALIF UTILITY SAID THAT INDUSTRY LEADERS EXPECTED THE PROPOSAL ADDING THAT THERE IS NO DISSENSION AMONG ELECTRIC UTILITIES ABOUT THE NEED TO SIMPLIFY REGULATION 9312030134 931203 AMBER'S STORES SALES DALLAS AMBER'S STORES INC SAID SALES AT STORES OPEN AT LEAST A YEAR FELL 68 IN NOVEMBER FROM A YEAR EARLIER THE ARTS AND CRAFTS RETAILER SAID TOTAL SALES FOR THE MONTH INCREASED 35 TO 84 MILLION FROM 62 MILLION SAMESTORE SALES SO FAR THIS FISCAL YEAR ARE DOWN 65 WHILE TOTAL SALES ARE UP 51 TO 458 MILLION FROM 303 MILLION 9312030133 931203 INTERNATIONAL TRADERS IN TOKYO TRY TO STAY AFLOAT AS NIKKEI SURGES STOCK INDEX'S RECENT SWINGS BEFUDDLE SOME INVESTORS RISE LIKENED TO TIDAL WAVE BY QUENTIN HARDY AND JATHON SAPSFORD STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO MASAHIKO TSUYUZAKI A ONETIME CHAMPION SURFER THESE DAYS IS RIDING THE REALLY BIG WAVES IN THE TOKYO STOCK MARKET THE STOCK TRADER AT JAPAN'S TACHIBANA SECURITIES CO ARRIVED AT WORK THURSDAY HOPING FOR A RETURN TO CALM AFTER THE WILD UPS AND DOWNS OF RECENT DAYS INSTEAD THE TOKYO MARKET SURGED LIKE A TSUNAMI OR TIDAL WAVE WITH THE NIKKEI STOCK AVERAGE RISING 761 POINTS IN TWO HOURS THE WAVE BROKE AFTER LUNCH AS THE BENCHMARK AVERAGE PLUNGED 427 POINTS TO CLOSE AT 1745875 STILL UP 33344 POINTS OR 2 ON THE DAY THOUGH IT WAS QUITE A RIDE THURSDAY'S TRADING DIDN'T MATCH WEDNESDAY'S 718POINT RALLY MONDAY'S 647POINT WIPEOUT OR LAST WEEK'S PLUNGES OF 496 AND 556 POINTS IT'S REALLY CRAZY SAYS MR TSUYUZAKI AND NOT TEMPORARY CRAZINESS EITHER IN THE PAST 18 MONTHS ALONE THE NIKKEI AVERAGE HAS MOVED BY ROUGHLY THREE PERCENTAGE POINTS ON 23 SEPARATE TRADING DAYS IN ANY OF THE DEVELOPED WORLD'S OTHER MARKETS A 1 DAILY MOVE IS A BIG DEAL DURING THE PERIOD THE NIKKEI HAS ZOOMED AS HIGH AS 20895 AND PLUNGED TO 14309 ONLY TO END UP ABOUT WHERE IT STARTED IT'S MISERABLE SAYS BRIAN HOPKINSON A FUND MANAGER WITH FIDUCIARY TRUST CO WITH JAPAN THIS YEAR YOU'VE JUST HAD TOO MUCH STOCK OR TOO LITTLE MR TSUYUZAKI AND OTHER TRADERS SAY SUCH GYRATIONS AREN'T CAUSED BY ANY SHIFT IN FUNDAMENTALS BUT BY THE HERD MENTALITY AMONG TOKYO INVESTORS ON THURSDAY FOR EXAMPLE HE SAYS THERE WAS NEARPANIC BUYING ON REPORTS THAT THE GOVERNMENT PLANS NEW MEASURES TO HELP THE BATTERED MARKET PEOPLE WHO DUMPED STOCKS TWO DAYS AGO SUDDENLY BOUGHT AS IF THEY WERE AFRAID TO MISS OUT SAYS MR TSUYUZAKI THIN TRADING VOLUME ALSO IS EXACERBATING THE PRICE MOVES THURSDAY'S RISE FOLLOWED AN ANNOUNCEMENT THAT PRIME MINISTER MORIHIRO HOSOKAWA WILL SOON ANNOUNCE A TAX CUT AND OTHER MEASURES DESIGNED TO BOOST THE ECONOMY THAT'S IMPORTANT BUT THE TAX CUT EXPECTED TO BE BETWEEN FIVE TRILLION YEN AND 10 TRILLION YEN 46 BILLION AND 92 BILLION HAS BEEN EXPECTED FOR MONTHS SO WHEN THE MARKET SURGED THURSDAY MORNING I JUST LOOKED AT IT AND SAID WHY' SAYS ALAN LIVSEY STRATEGIST AT KLEINWORT BENSON INTERNATIONAL INC WE'VE KNOWN FOR WEEKS THAT THERE WOULD BE A TAX CUT ANNOUNCED IN EARLY DECEMBER AFTER ALL THE SWINGS HE SAYS THE FOREIGNERS ARE TOTALLY LOST INCLUDING THIS ONE THIS DOESN'T HAPPEN IN OTHER MAJOR MARKETS ADDS KEITH DONALDSON STRATEGIST AT SALOMON BROTHERS ASIA LTD WHO SAYS TOKYO'S PEAKS AND PLUNGES MAKE IT SEEM MORE LIKE AN EMERGING MARKET THAN ONE OF THE WORLD'S LARGEST I THOUGHT THE TOKYO MARKET WAS MATURING BUT THIS WEEK SHOWS IT'S NOT BOTH MEN STILL SAY THERE'S A TECHNIQUE FOR SUCCESSFULLY RIDING THE NIKKEI THROUGH SUCH MADNESS HOWEVER IT'S JUST A MATTER OF IGNORING THE DAILY ACTION AS THEY AND OTHERS SEE IT THE MARKET HAS SHUDDERED ITS WAY DOWN OVER THE PAST WEEK TO ACCOMMODATE PROJECTED LOWER CORPORATE EARNINGS BARRING THE OCCASIONAL 1000POINT HICCUP MANY ANALYSTS SAY THE NIKKEI WILL TRADE BETWEEN 16000 AND 18000 FOR THE NEXT FEW MONTHS 9312030132 931203 WHO'S NEWS FIELDCREST CANNON INC FIELDCREST CANNON INC EDEN NC WILLIAM E FORD AND W DUKE KIMBRELL WERE ELECTED TO THE BOARD OF THIS MAKER OF BED SHEETS AND BATH TOWELS MR FORD 67 IS FORMER PRESIDENT OF VMI AMERICAS INC A DUTCHOWNED MAKER OF EQUIPMENT FOR THE TIRE INDUSTRY HE IS NOW A SENIOR ADVISER TO A UNITED NATIONS ECONOMIC DEVELOPMENT PROJECT IN CHINA MR KIMBRELL 68 IS CHAIRMAN OF PARKDALE MILLS INC A YARN MAKER IN GASTONIA NC FC DUMAINE 91 A FIELDCREST DIRECTOR SINCE 1953 RESIGNED BRINGING TO EIGHT THE NUMBER OF FIELDCREST DIRECTORS 9312030131 931203 WHO'S NEWS AST RESEARCH INC AST RESEARCH INC IRVINE CALIF SEAN CORKERY A 12YEAR VETERAN OF APPLE COMPUTER INC WAS NAMED VICE PRESIDENT OF EUROPEAN OPERATIONS OF THIS PERSONAL COMPUTER COMPANY AS WELL AS MANAGING DIRECTOR OF ITS AST IRELAND LTD UNIT MR CORKERY 35 YEARS OLD WAS INSTRUMENTAL IN ESTABLISHING A BEACHHEAD FOR APPLE'S EUROPEAN MACINTOSH OPERATIONS IN CORK IRELAND MOST RECENTLY HE SERVED AS SENIOR DIRECTOR REGIONAL OPERATIONS FOR APPLE PACIFIC MANAGING APPLE'S OPERATIONS IN JAPAN AUSTRALIA THE FAR EAST LATIN AMERICA AND CANADA 9312030130 931203 POLITICS & POLICY TENNESSEE DEMOCRAT'S RIVAL HEALTHCARE PLAN INSPIRES INDUSTRY SUPPORT ADMINISTRATION WRATH BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN PRESIDENT CLINTON GOES BEFORE THE DEMOCRATIC LEADERSHIP COUNCIL THIS MORNING MANY WILL BE LOOKING OVER HIS SHOULDER AT A YOUNG TENNESSEE CONGRESSMAN WHO IS NEXT IN LINE TO SPEAK JIM COOPER A FELLOW RHODES SCHOLAR AND DLC LOYALIST MR COOPER HAS GIVEN THE WHITE HOUSE FITS BY PITCHING A RIVAL HEALTHREFORM PLAN THAT THREATENS TO STEAL PRECIOUS BIPARTISAN SUPPORT FROM THE ADMINISTRATION'S BILL IN CONGRESS HILLARY RODHAM CLINTON HERSELF LASHED OUT AT THE COOPER ALTERNATIVE THIS FALL AND WHITE HOUSE HEALTH CZAR IRA MAGAZINER AND DEPUTY TREASURY SECRETARY ROGER ALTMAN MET WITH DLC LEADERS AND THE CONGRESSMAN YESTERDAY TO EMPHASIZE COMMON GROUND AND COOL THE RHETORIC EXPECTED TODAY ON THE SURFACE MR COOPER IS AN UNLIKELY RIVAL A SMART GOLFPLAYING SOUTHERN POLICY WONK WHO IS EVEN RUNNING FOR THE SENATE SEAT VACATED BY MR CLINTON'S OWN VICE PRESIDENT AL GORE JUST 39 YEARS OLD HE FITS THE NEW DEMOCRAT LABEL APPROPRIATED BY MR CLINTON'S DLC CENTRIST ALLIES BUT THIS VERY CLOSENESS ONLY ADDS TO THE FERVOR NOW OVER HOW THE FRAMEWORK OF THE HEALTHCARE DEBATE IS DEFINED THE PRESIDENT SAYS THE DECIDING ISSUE IS UNIVERSAL COVERAGE HIS BILL GUARANTEES IT MR COOPER'S DOESN'T MR COOPER SAYS THE MORE IMPORTANT ISSUE IS GOVERNMENT REGULATION HIS BILL SHUNS MANDATES AND WOULD CONTROL MEDICAL COSTS BY STIMULATING MARKET COMPETITION THE ADMINISTRATION HE SAYS WOULD RESORT TO GOVERNMENT CONTROLS DOMINATED BY A BUREAUCRACY OF 1800 NURSES AND UNSEEN UNKNOWN HIGHSCHOOL GRADUATES ALL OUR BILLS ARE FIRST COUSINS MR COOPER SAYS WHAT WE WANT IS A FAMILY REUNION THIS REALLY IS A BATTLE BETWEEN THE OLD DEMOCRAT AND THE NEW DEMOCRAT WHETHER YOU BELIEVE THE PHILOSOPHY OF ENTITLEMENT OR THE PHILOSOPHY OF EMPOWERMENT THE NEW DEMOCRAT LABEL DISGUISES THE FACT THAT MUCH OF THIS IS VERY OLD POLITICS INDEED MR COOPER'S PROBUSINESS AGENDA SUITS HIS RURAL OVERWHELMINGLY WHITE SOUTHERN DISTRICT AND TENNESSEE IS HOME FOR SOME OF THE NATION'S LARGEST FORPROFIT HOSPITAL COMPANIES AND HEALTHCARE PROVIDERS RATHER THAN BEING A YOUNG REBEL IT CAN BE ARGUED THAT THIS FORMER GOVERNOR'S SON IS ONLY TRADING ONE GENERATION OF ELITES EMBODIED BY HIS POLITICAL BANKING FAMILY FOR ANOTHER SYMBOLIZED BY THE YOUNG PROFESSIONAL ESTABLISHMENT SURROUNDING THE DLC AND ITS FREQUENT ALLIES AT THE NEW REPUBLIC MAGAZINE MR COOPER'S BILL EMBRACED BY THE NEW REPUBLIC'S EDITORS IS A DARLING FOR WASHINGTON PUNDITS WHO SEE IT AS THE HEART OF WHATEVER COMPROMISE EVENTUALLY EMERGES FROM CONGRESS AND IT HAS BECOME A LIFE RAFT FOR MANY IN THE HEALTH INDUSTRY WHO WOULD BLUNT THE PRICE CONTROLS IN OTHER HEALTHREFORM PROPOSALS NOT SURPRISINGLY MR COOPER HAS BECOME A MAGNET FOR CAMPAIGN CONTRIBUTIONS FROM THE HEALTHCARE INDUSTRY MR COOPER'S SENATE CAMPAIGN EXPECTS TO RAISE 17 MILLION THIS YEAR ALONE AND HAD ALREADY COLLECTED 904000 IN THE FIRST SIX MONTHS HE SHUNS THE POLITICAL ACTION COMMITTEE CONTRIBUTIONS THAT ONCE DOMINATED HIS RACES BUT ACCORDING TO A RECENT STUDY BY THE CONSUMER ORGANIZATION CITIZEN ACTION MR COOPER LED THE HOUSE AND ALMOST ALL OF CONGRESS IN CONTRIBUTIONS FROM LARGE DONORS ASSOCIATED WITH THE HEALTH INDUSTRY WITH 153000 THROUGH JUNE 30 THE TENNESSEE DEMOCRAT'S PROMINENCE IN THE HEALTH DEBATE HAS HELPED WIN SUPPORT FROM NASHVILLEBASED HOSPITAL CHAINS THAT SEE HIM AS A TEMPERING INFLUENCE ON THE ADMINISTRATION HE BRINGS A MODERATE VIEWPOINT TO OPERATE FROM SAYS PARKER SHERRILL A VICE PRESIDENT FOR GOVERNMENT RELATIONS AT HEALTHTRUST INC WITH ANNUAL REVENUE OF ABOUT 23 BILLION INDIVIDUALS ASSOCIATED WITH HEALTHTRUST AND ITS LARGER RIVAL HCAHOSPITAL CORP OF AMERICA GAVE AT LEAST 17000 TO THE COOPER CAMPAIGN AT A FUNDRAISER LAST MAY AND HEALTHTRUST EXECUTIVES HAVE SINCE HELPED TO RAISE MORE FROM THE INDUSTRY AN EVENT LAST WEEK HAD TO BE SCRAPPED BECAUSE THE CONGRESSMAN STAYED IN WASHINGTON TO VOTE ON CAMPAIGNFINANCE REFORM LEGISLATION BUT ROBERT DAVIDSON THE COOPER CAMPAIGN TREASURER ESTIMATES THAT ABOUT 30000 WAS PLEDGED OR RECEIVED NONETHELESS FROM DONORS WHO WERE TO ATTEND THE RECEPTION AT THE NASHVILLE HOME OF HEALTHTRUST'S CHIEF EXECUTIVE OFFICER CLAYTON MCWHORTER THE MIX OF FORCES MAKES FOR ODD ALLIANCES IN A STATE WHERE THE INDUSTRY HAS MORE THAN A CASUAL LEADERSHIP ROLE NASHVILLE MAYOR PHIL BREDESEN WHO FOUNDED A HEALTHMAINTENANCE ORGANIZATION AND MADE MILLIONS IN THE HEALTHCARE BUSINESS IS RUNNING FOR GOVERNOR NEXT YEAR AND BILL FRIST A YOUNGER BROTHER IN THE FAMILY THAT OVERSEES HCA IS CHALLENGING DEMOCRATIC INCUMBENT SEN JAMES SASSER ALSO UP FOR REELECTION NEXT YEAR MR COOPER'S CONTRIBUTIONS INCLUDE 1000 FROM LEE BARFIELD A NASHVILLE ATTORNEY WHO SPECIALIZES IN REPRESENTING DOCTORS AND HOSPITALS AND WHO NOW IS ASSOCIATED WITH THE CHALLENGE TO MR SASSER AT THE SAME TIME LABOR IS SO DISENCHANTED WITH MR COOPER THAT FRED THOMPSON HIS LIKELY REPUBLICAN RIVAL IS MAKING OVERTURES TO UNION LEADERS SUCH AS STATE AFLCIO PRESIDENT JAMES NEELEY HIS PLAN IS NOT OUR PLAN SAYS MR NEELEY OF THE DEMOCRAT'S HEALTH BILL THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES HAS MEMBERS IN TENNESSEE ALREADY WORKING PHONE BANKS AGAINST THE COOPER PLAN IT'S RUNNING A SIMILAR CAMPAIGN IN LOUISIANA HOME OF THE DLC CHAIRMAN SEN JOHN BREAUX WHO IS SPONSORING A COMPANION BILL IN THE SENATE AND LABOR IS MOBILIZING TO TRY TO PERSUADE COSPONSORS TO REMOVE THEIR NAMES FROM THE COOPER BILL THIS SPLIT WITH LABOR IS TELLING IN MEASURING MR COOPER AGAINST THE MAN HE OFTEN RESEMBLES VICE PRESIDENT GORE BOTH ARE THE SONS OF PATRICIAN FAMILIES BUT MR GORE HAS MORE OF A POPULIST STREAK OWED TO HIS FATHER AND THE ACTIVISM OF THE 1960S IN THIS SENSE HE AND MR CLINTON ARE MORE TRANSITION FIGURES FOR THEIR PARTY WHILE MR COOPER WHO DIDN'T GET OUT OF HARVARD LAW SCHOOL UNTIL 1980 IS SINGLEMINDED IN HIS DEVOTION TO THE CONSERVATIVE MARKET PHILOSOPHY OF THAT DECADE AND HIS FRESHMAN DEMOCRATIC CLASS IN 1982 MINDFUL OF HIS REPUTATION FOR ARROGANCE MR COOPER KNOWS HE TOO CAN BE HURT BY THE RECENT SNIPING HE SAYS REPEATEDLY THAT HIS PLAN IS ALREADY CLOSER TO THE ADMINISTRATION'S PLAN THAN ANY OTHER ALTERNATIVE AND WHILE MRS CLINTON HAS SPOKEN KINDLY OF A SENATE REPUBLICAN ALTERNATIVE HE ARGUES THAT HIS MAKES MUCH MORE OF A COMMITMENT TO MEETING THE NEEDS OF THE POOR WE'RE BRAVER THAN LBJ HE SAYS UNIVERSAL COVERAGE IS A GOOD GOAL AND I AGREE WITH THE PRESIDENT'S TIMETABLE 1998 MR COOPER INSISTS BUT HE ARGUES FOR ENACTING FIRST A BILL THAT WILL PROVIDE INCENTIVES TO BUY HEALTH INSURANCE THEN COMING BACK WITH A SECOND PIECE OF LEGISLATION BEFORE THE 1996 ELECTION THAT WOULD FILL IN THE GAPS AND PROVIDE COVERAGE TO THOSE STILL WITHOUT IT MR COOPER DEVELOPED HIS HEALTH BILL IN CLOSE CONSULTATION WITH THE JACKSON HOLE GROUP A LOOSEKNIT BAND OF ACADEMICS AND HEALTHINDUSTRY REPRESENTATIVES WHO FATHERED THE THEORY OF MANAGED COMPETITION MR COOPER LIKES TO SAY HIS BILL IS THE PUREST FORM OF MANAGED COMPETITION BUT EVEN IT DIFFERS WITH THE JACKSON HOLE PLAN IN AREAS SUCH AS THE EMPLOYER MANDATE LIKE THE PRESIDENT AND UNLIKE MR COOPER THE JACKSON HOLE MEMBERS WOULD REQUIRE ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF THEIR WORKERS' HEALTH INSURANCE JACKSON HOLE WANTED UNIVERSAL COVERAGE SAYS PAUL ELLWOOD A COFOUNDER OF THE GROUP HE HAS STOOD UP TO A LOT OF PRESSURE HE'S GOING TO BE A REAL FORCE IN SHAPING THIS BILL SAYS THE DLC'S PRESIDENT AL FROM OF MR COOPER BUT LIBERALS PALE TO HEAR SOUTHERN MODERATES TALK AGAIN OF SAVING THE CLINTON PRESIDENCY HE'S A RHODES SCHOLAR SAYS REP FORTNEY PETE STARK D CALIF THEY HAVE THAT DOBERMAN PINSCHER STARE THEY SMILE AT YOU BUT YOU DON'T WANT TO HOLD OUT YOUR HAND TO THEM A HUGE PHOTO IN MR COOPER'S HOUSE OFFICE SHOWS HIS FATHER SITTING A HALF CENTURY AGO BETWEEN ANOTHER PRESIDENT AND FIRST LADY FRANKLIN AND ELEANOR ROOSEVELT AT A 1940 PUBLIC WORKS DEDICATION IN TENNESSEE I DO LIKE TO FIGHT FOR WHAT I BELIEVE IN SAYS MR COOPER I'M NOT ASHAMED TO EAT CROW AND IF YOU'RE GOING TO HAVE TO EAT CROW YOU MIGHT AS WELL EAT IT HOT 9312030129 931203 CORPORATE FOCUS WITH RIVALS NEAR NYNEX TRIES TO PLEASE EDGY CLIENTS FIRM PROCEEDS CAUTIOUSLY AS CABLE TV SNAKES INTO THE PHONE INDUSTRY BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR YEARS NYNEX CORP HAS ALIENATED SOME OF ITS MOST PROFITABLE CUSTOMERS WITH SHODDY SERVICE LAGGING TECHNOLOGY AND HIGH PRICES NOW THE LOCAL PHONE COMPANY IS SCRAMBLING TO GET BACK IN THEIR GOOD GRACES BEFORE THEY TURN TO NEW RIVALS CABLE COMPANIES AND OTHER BABY BELLS AS CABLETV AND PHONE COMPANIES JOCKEY AND CONVERGE IN THE WAKE OF BELL ATLANTIC CORP'S MASSIVE PLANNED ACQUISITION OF TELECOMMUNICATIONS INC ALL SEVEN LOCAL BELL COMPANIES WILL FACE NEW COMPETITION BUT NOWHERE IS THE THREAT MORE REAL AND MORE IMMEDIATE THAN IN NYNEX'S NORTHEASTERN TURF WHICH RIVALS HAVE LONG COVETED FOR THE RICHES OF ITS NEW YORK BUSINESS CLIENTELE THE BIGGEST THREAT COMES FROM TIME WARNER INC AND BABY BELL RIVAL U S WEST INC WHICH PAID 25 BILLION FOR A 25 STAKE IN TIME WARNER'S CABLE AND ENTERTAINMENT BUSINESSES IN JULY TIME WARNER QUIETLY APPLIED FOR APPROVAL TO OFFER PHONE SERVICES ON CABLE SYSTEMS IN ROCHESTER NY AND ALBANY NY IT ALSO HAS ASKED THE STATE PUBLIC SERVICE COMMISSION TO PERMIT PHONE SERVICE IN THE NEW YORK CITY MARKET WHERE TIME WARNER SERVES ALMOST A MILLION SUBSCRIBING CABLE HOMES IN ADDITION ANOTHER BIG CABLE OPERATOR CABLEVISION SYSTEMS CORP WITH 21 MILLION HOMES IN LONG ISLAND AND ELSEWHERE HAS FILED A SIMILAR REQUEST WITH THE STATE THE PRESSURE ON NYNEX WILL INCREASE IF CABLEVISION SELLS OUT IT IS SAID TO HAVE TALKED WITH BABY BELLS U S WEST AND AMERITECH CORP AMONG POSSIBLE SUITORS YET SO FAR NYNEX SEEMS TO BE RESPONDING CAUTIOUSLY IT HAS AVOIDED A CABLEBUYING BINGE TO OFFER NEW PHONE SERVICE IN OTHER BABY BELL MARKETS INSTEAD FOCUSING ON OVERSEAS VENTURES NYNEX ALSO HAS INKED A 12 BILLION PASSIVE INVESTMENT IN VIACOM INC TO AID THAT COMPANY'S EFFORT IN THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INC WHICH OWNS SOFTWARE SUCH AS PROGRAMMING RATHER THAN CABLE SYSTEMS AND RATHER THAN PUMP BILLIONS INTO A MAJOR REBUILDING OF ITS PHONE SYSTEMS AS BELL RIVAL PACIFIC TELESIS GROUP HAS JUST ANNOUNCED IN A 16 BILLION EFFORT IN CALIFORNIA NYNEX IS SPENDING SLOWLY AND FOCUSING ON FREEING ITSELF OF REGULATORY RESTRICTIONS NYNEX VICE CHAIRMAN FREDERIC SALERNO ACKNOWLEDGES THE COMPETITIVE THREAT BUT SAYS THE COMPANY NEEDS LESS REGULATION BEFORE IT CAN JUSTIFY SPENDING BILLIONS REBUILDING ITS NETWORK STATE RULES FORCES NYNEX TO GIVE REFUNDS TO CUSTOMERS IF IT EARNS MORE THAN A CERTAIN RETURN ON ITS REGULATED PHONE BUSINESS RIVALS SUCH AS BELL ATLANTIC HAVE INCENTIVEBASED RULES THAT ENCOURAGE AGGRESSIVE INVESTMENT MR SALERNO COMPLAINS WE HAVE TO HAVE THE ABILITY TO PROVIDE CABLE SERVICES IN THE AREAS U S WEST WILL TARGET HE SAYS TO MAKE SURE CUSTOMERS STAY WITH US YESTERDAY NYNEX'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM FERGUSON TOLD REPORTERS THE COMPANY PLANS TO BUILD AN INTERACTIVE NETWORK ACROSS ITS TERRITORY WHICH COVERS NEW YORK AND NEW ENGLAND BUT THE COMPANY HASN'T DECIDED YET WHERE IT WILL BEGIN CONSTRUCTION HOW EXTENSIVE THE NETWORK SHOULD BE OR HOW MUCH IT IS WILLING TO SPEND FOR THE PAST FEW YEARS NYNEX HAS SPENT ABOUT 2 BILLION ANNUALLY DEPLOYING FIBEROPTIC LINES THAT COULD ONE DAY BE USED TO PROVIDE INTERACTIVE SERVICES TO BE SURE NYNEX HAS STRUGGLED WITH FACTORS IT CAN'T CONTROL INCLUDING A WEAK NEW ENGLAND ECONOMY A TOUGH REGULATORY ENVIRONMENT AND THE DEMANDS OF SERVING MANHATTAN HOME TO SOME OF THE WORLD'S RICHEST AND MOST EXACTING TELECOMMUNICATIONS CUSTOMERS BUT EVEN NYNEX INSIDERS CONCEDE THAT PART OF THE PROBLEM IS THEIR OWN FAULT AS THE COMPANY WAS SLOW TO ROLL OUT NEW SERVICES RELUCTANT TO CUT PRICES AND AT TIMES LOUSY AT SERVING CUSTOMERS AS FAR AS MARKETING WE HAD AN AWFUL LOT TO LEARN SAYS DOUGLAS MELLO A GROUP VICE PRESIDENT AT NYNEX'S NEW YORK TELEPHONE WHO WILL BECOME THE PARENT COMPANY'S TOP SALES EXECUTIVE IN JANUARY NYNEX'S REPUTATION FOR CUSTOMER SERVICE IS SO INFAMOUS THAT EXECUTIVES AT OTHER BABY BELLS POINT TO IT PRIVATELY AS AN EXAMPLE OF WHAT HAPPENS WHEN A PHONE COMPANY FAILS TO KEEP UP WITH CHANGES IN THE MARKETPLACE AT ONE BABY BELL SALES MANAGERS REGULARLY IMPLORE THEIR STAFFS TO NOT LET THE COMPANY BECOME ANOTHER NYNEX ENCOURAGING THEM TO MAINTAIN GOOD RELATIONS WITH CUSTOMERS IN MANHATTAN ALONE UPSTART PHONE SERVICES SUCH AS METROPOLITAN FIBER SYSTEMS INC HAVE SIPHONED OFF ABOUT 200 MILLION FROM NYNEX IN JUST THE PAST FOUR YEARS IN THE MARKET FOR HIGHSPEED PIPELINES KNOWN AS T1 LINES THE UPSTARTS INSTALLED THE VOICEANDDATA LINES IN A FEW DAYS COMPARED WITH ALMOST A FULL MONTH AT NYNEX AND AT CHEAPER RATES NYNEX COUNTERS THAT IT HAS TRIMMED THE INSTALLATION WAIT TO SEVEN BUSINESS DAYS FROM 19 AND THAT IT HAS CUT PRICES IN HALF FROM A FEW YEARS AGO BUT SMALLER RIVALS STILL SERVE THE CUSTOMER FASTER AND THEIR RATES REMAIN ABOUT 10 LOWER FOR T1 SERVICE BATTLE OVER DS3 IN ANOTHER TYPE OF SERVICE KNOWN AS DS3 UPSTART TELEPORT TELECOMMUNICATIONS GROUP INC WHICH IS PARTLY OWNED BY CABLE GIANT TCI BEAT NYNEX TO MARKET BY MONTHS WHEN TELEPORT IN 1985 SOUGHT STATE APPROVAL TO OFFER DS3 SERVICE TO BUSINESS CLIENTS NEW YORK TELEPHONE WAS UNABLE TO OFFER AN ALTERNATIVE ITS RESPONSE IT ASKED STATE OFFICIALS TO TURN DOWN TELEPORT'S REQUEST REASONING THAT SUCH A SERVICE SHOULD ONLY BE OFFERED BY THE PHONE COMPANY THE STATE REJECTED THAT ARGUMENT INSTEAD ORDERING NEW YORK TELEPHONE TO START OFFERING THE SAME SERVICE IN THE MID1980S CUSTOMERS HAD TO WAIT ALMOST A FULL YEAR TO GET NEW YORK TELEPHONE TO INSTALL SOME PRIVATE LINE SERVICES WHILE SOME RIVALS OFFERED THE SAME SERVICES IN LESS THAN ONETHIRD THE TIME AS LATE AS 1989 THE NEW YORK SYSTEM WAS STILL CHARGING BUSINESS CLIENTS EXTRA FEES FOR LINKUPS TO FIBEROPTIC LINES EVEN THOUGH MOST BABY BELLS WERE OFFERING THOSE SAME CONNECTIONS FREE OF CHARGE TO KEEP CUSTOMERS HAPPY SUCH ACTS ARE NO SMALL TRANSGRESSION CONSIDERING THAT IN MANHATTAN 90 OF NYNEX'S PROFITS COME FROM CORPORATE ACCOUNTS JEFF MARSHALL SENIOR MANAGING DIRECTOR OF COMMUNICATION TECHNOLOGIES AT BEAR STEARNS & CO IN NEW YORK SAYS HE HAD TO WAIT SIX MONTHS FOR A SPECIAL PHONE CONNECTION FROM NEW YORK TELEPHONE SIMPLY BECAUSE HIS FIRM WASN'T IN THE RIGHT BUILDING AT THE RIGHT TIME TO GET QUICKER SERVICE EVERYONE HAD TO WAIT THAT LONG HE SAYS THAT'S WHY WE HAD TO BECOME VERY AGGRESSIVE SO MR MARSHALL TURNED TO MFS NOW MFS PROVIDES PRIVATE LINES THAT COST BEAR STEARNS LESS THAN 50 A MONTH BACK IN 1988 THE SAME SERVICES WERE PROVIDED BY NYNEX AT A COST OF SOME 3000 A MONTH MR MARSHALL SAYS HE STILL DOES BUSINESS WITH NYNEX'S NEW YORK UNIT HOWEVER AND HE NOTES ITS PERFORMANCE BEGAN TO IMPROVE THE MINUTE THERE WAS COMPETITION IN THE MARKETPLACE BROOKS BROTHERS A US RETAILING UNIT OF BRITAIN'S MARKS & SPENCER PLC USES MFS FOR INTERNAL TOLLFREE LINES AND OTHER SERVICES JOSEPH MCCOURT DIRECTOR OF COMMUNICATIONS PRAISES MFS FOR TAKING THE EXTRA STEP TO MEET HIS NEEDS AND WHAT ABOUT NEW YORK TELEPHONE'S SERVICE IT'S AVERAGE HE SAYS HE PLANS TO USE MFS FOR REGULAR LOCAL PHONE SERVICE WHENEVER IT BECOMES AVAILABLE 9312030128 931203 PIER 1 IMPORTS INC SALES INCREASED FORT WORTH TEXAS PIER 1 IMPORTS INC SAID COMPARABLESTORE SALES FOR THE FOUR WEEKS ENDED NOV 27 ROSE 9 FROM A YEAR EARLIER TOTAL SALES INCREASED 14 TO 557 MILLION FROM 489 MILLION PIER 1 IS A SPECIALTY RETAILER OF FURNISHINGS 9312030127 931203 LOW OIL PRICES TO GIVE ASIA ECONOMIC BOOST FASTGROWING AREA NATIONS ARE EXPECTED TO BENEFIT FROM CHECK ON INFLATION BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE RECENT DECLINE IN GLOBAL OIL PRICES SHOULD BE A BOON TO MOST OF ASIA'S FASTGROWING ENERGYHUNGRY ECONOMIES COMING AT A TIME WHEN INFLATION IS THE BIGGEST THREAT TO HEALTHY ECONOMIC GROWTH ANALYSTS SAY THE SLIDE IN ENERGY COSTS IS GOOD NEWS FOR MOST COUNTRIES IN THE REGION AND EVEN FOR ASIA'S BIGGEST OIL EXPORTER INDONESIA THE IMPACT WILL BE DIMINISHED BY THE COUNTRY'S DECREASING DEPENDENCE ON OIL REVENUE IT'S THE REVERSE OF AN OIL SHOCK SAYS RANJAN PAL REGIONAL ECONOMIST AT JARDINE FLEMING BROKING LTD IN HONG KONG IT'S VERY TIMELY BECAUSE DEMAND IN ASIA IS GROWING VERY RAPIDLY OIL PRICES FELL AS LOW AS 1521 IN NEW YORK ON MONDAY COMPARED WITH A LEVEL OF 18 A BARREL IN OCTOBER PRICES HAVE SINCE RECOVERED SLIGHTLY CLOSING AT 1548 A BARREL WEDNESDAY IN NEW YORK THE DROP EARLY THIS WEEK CAME IN THE WAKE OF LAST WEEK'S FAILURE OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO CUT ITS PRODUCTION QUOTAS AND IRAQ'S ANNOUNCEMENT THAT IT WOULD ALLOW LONGTERM MONITORING OF ITS WEAPONSMAKING POTENTIAL BY THE UNITED NATIONS TRADERS VIEWED BAGHDAD'S DECISION AS A PRELUDE TO THE LIFTING OF UN SANCTIONS THAT WOULD ALLOW THE SALE OF IRAQI CRUDE ON INTERNATIONAL MARKETS FOR THE FIRST TIME IN THREE YEARS GIVEN OPEC'S DISARRAY AND IRAQ'S EAGERNESS TO EARN HARD CURRENCY MANY ANALYSTS PREDICT THAT PRICES WILL CONTINUE TO DROP IN THE MONTHS AHEAD PERHAPS AS LOW AS 10 A BARREL OTHERS CONTEND THAT OPEC WILL HAVE NO CHOICE BUT TO ACT SHOULD PRICES APPROACH THAT LEVEL NOTHING CAN CONCENTRATE A CARTEL'S MIND AS QUICKLY AS A RAPID DECLINE IN THE PRICE OF THEIR PRODUCT SAYS AJAY KAPUR CHIEF ECONOMIST FOR PEREGRINE BROKERAGE LTD IN HONG KONG MEANWHILE ANALYSTS AGREE THAT EVEN A SHORTTERM DECLINE IN PRICES WILL BENEFIT THE REGION OIL CONSUMPTION HAS JUMPED MORE THAN 50 IN THE LAST DECADE WITH MUCH OF THE DEMAND COMING FROM NONPRODUCERS SUCH AS TAIWAN AND SOUTH KOREA INDEED MORE THAN 65 OF THE 15215 BARRELS OF OIL THAT ASIA CONSUMED DAILY LAST YEAR WERE IMPORTED FROM OUTSIDE THE REGION I THINK THAT IS ONE OF THE MAJOR REASONS THAT INFLATION IS RUNNING LOWER THAN PEOPLE EXPECTED IN MALAYSIA THAILAND KOREA TAIWAN AND SINGAPORE SAYS SANJOY CHOWDHURY CHIEF ECONOMIST FOR THE ASIAPACIFIC REGION AT MERRILL LYNCH & CO IN SINGAPORE REFERRING TO THE SOFTENING OF OIL PRICES IN THE PAST FEW MONTHS THE OTHER REASON FOR THE POSITIVE INFLATION PICTURE OF LATE HAS BEEN A DECLINE IN FOOD PRICES BUT BEYOND ENERGY AND FOOD SOME ECONOMISTS WORRY THAT THE REGION IS ON THE VERGE OF A CONSUMPTION BOOM THAT COULD RAPIDLY PUSH UP PRICES INTEREST RATES HAVE FALLEN STOCK PRICES HAVE RISEN TOURIST ARRIVALS ARE UP AND DOMESTIC INVESTMENT DUE TO THE REGION'S MANY INFRASTRUCTURE PROJECTS IS ALSO ON THE UPSWING ALL THAT POINTS TO AN ACCELERATION IN DOMESTIC DEMAND THAT COULD LEAD TO RISING INFLATION THAT IS THE BIGGEST THREAT TO ASIAN ECONOMIC AND STOCKMARKET GROWTH IN THE NEXT SIX MONTHS SAYS KEITH FERGUSON CHIEF REGIONAL ECONOMIST AT BARCLAYS DE ZOETE WEDD ASIA LTD DECLINING OIL PRICES COULD HELP BLUNT THE OVERALL PRICE RISES PREVENTING THE REGION'S ANXIOUS CENTRAL BANKERS FROM TIGHTENING THEIR RESPECTIVE MONEY SUPPLIES PERHAPS MORE IMPORTANT DECLINING ENERGY PRICES WILL HELP IMPROVE THE INFLATION OUTLOOK IN THE US WHICH MEANS INTEREST RATES THERE WILL BE LESS LIKELY TO RISE THAT INCREASES THE CHANCES THAT AMERICAN INVESTORS WILL CONTINUE TO POUR MONEY INTO THE REGION'S STOCK MARKETS IN SEARCH OF HIGHER RETURNS THAN THEY CAN GET AT HOME THE BENEFITS OF LOWER ENERGY PRICES SHOULD PARTICULARLY HELP TAIWAN AND KOREA WHICH ARE ABOUT TO EXPERIENCE A REVIVAL OF EXPORT GROWTH ACCORDING TO MR FERGUSON IT'S COMING RIGHT AT THE SWEET SPOT IN THEIR CYCLE HE SAYS FOR THE PHILIPPINES AND INDIA WHICH HAVE LARGE EXTERNAL DEBTS AND ARE DESPERATELY IN NEED OF FOREIGN EXCHANGE DECLINING ENERGY PRICES COULD HELP FORESTALL BALANCEOFPAYMENTS DIFFICULTIES IN BOTH COUNTRIES THE GOVERNMENT SETS OIL PRICES MAKING UP THE DIFFERENCE IN PRICE RISES THROUGH SUBSIDIES BUT IF THE PRICE FALLS BELOW THE STATEREGULATED LEVEL THE GOVERNMENT MAKES A PROFIT JAPAN THOUGH AN OIL IMPORTER DOESN'T STAND TO BENEFIT MUCH FROM THE SLIDING PRICES AS ITS ECONOMY BATTLES BACK TO HEALTH INDONESIA THE REGION'S LARGEST OIL EXPORTER STANDS TO BE THE BIGGEST LOSER OFFICIALS IN JAKARTA HAVE GIVEN A PRELIMINARY TARGET OF 17 A BARREL FOR THE COUNTRY'S 1994 BUDGET DUE TO BE RELEASED IN JANUARY THAT NOW APPEARS TOO HIGH SHOULD OIL PRICES REMAIN BELOW THAT LEVEL THE GOVERNMENT WOULD EXPERIENCE AN INCOME SHORTFALL BASED ON CURRENT ESTIMATES FORCING IT TO CUT SPENDING I THINK THERE IS INCREASING CONCERN ABOUT IT AMONG POLICYMAKERS IN JAKARTA SAYS MR CHOWDHURY CALCULATING A WORSTCASE SCENARIO OF AN OIL PRICE OF 10 A BARREL AND A DOLLARFORDOLLAR COMPLEMENTARY DECLINE IN GOVERNMENT SPENDING MR KAPUR OF PEREGRINE ESTIMATES THAT INDONESIA'S GDP GROWTH NEXT YEAR COULD BE TRIMMED BY 12 PERCENTAGE POINTS TO 59 FROM HIS CURRENT PROJECTION OF 71 BUT HE IS QUICK TO POINT OUT THAT SUCH A SCENARIO IS HIGHLY UNLIKELY BECAUSE THE GOVERNMENT WOULD NOT ALLOW SUCH A DRASTIC CUT IN SPENDING OTHER ECONOMISTS AGREE ARGUING THAT INDONESIA IS MUCH LESS VULNERABLE TO PRICE DECLINES TODAY WHEN 28 OF ITS TOTAL REVENUE COMES FROM OIL EXPORTS THAN IN 1982 WHEN THE FIGURE WAS 60 THE SAME GOES FOR MALAYSIA AND CHINA THE REGION'S TWO OTHER OIL EXPORTERS BOTH ARE MUCH LESS DEPENDENT ON OIL REVENUE THAN THEY WERE EVEN FIVE YEARS AGO INDEED THE IMPACT OF A PRICE SLIDE ON CHINA IS NEUTRAL IN THE WORDS OF ONE INDUSTRY ANALYST BECAUSE THE COUNTRY IS ON THE VERGE OF BECOMING A NET OIL IMPORTER EASILY THE REGION'S LARGEST PRODUCER CHINA PUMPED ONLY 8 MORE OIL THAN IT CONSUMED LAST YEAR BUT BECAUSE OF ITS STRAINED TRANSPORTATION NETWORK MUCH OF ITS CRUDE IS EXPORTED THROUGH NORTHERN OUTLETS NEAR WHERE IT IS PRODUCED WHILE THE COUNTRY'S FASTGROWING COASTAL REGIONS IN THE SOUTH HAVE BEEN FORCED TO IMPORT FALLING PRICES WOULD EASE INFLATION IN THE SOUTH WHILE CUTTING REVENUE IN THE NORTH FINALLY ASIA'S AIRLINES WILL ALSO BENEFIT FROM LOWER OIL PRICES BUT DON'T COUNT ON SEEING CUTS IN FARES ANYTIME SOON THIS COMES AT A VERY OPPORTUNE TIME BECAUSE IT MITIGATES VERY DEEP PROBLEMS IN THE AIRLINE BUSINESS IN ASIA SAYS JARDINE FLEMING ANALYST SHELDON KASOWITZ PRICE COMPETITION SLUGGISH TRAFFIC AND NEW ENTRANTS ARE ALL CUTTING INTO PROFITS HE ADDS MAKING IT EXTREMELY UNLIKELY THAT THE REGION'S CARRIERS WILL PASS ALONG THEIR FUEL SAVINGS TO CONSUMERS 9312030126 931203 BUSINESS BRIEF QUICK & REILLY GROUP INC FIRM TO POST OVER 60 RISE IN FISCAL 3RDQUARTER PROFIT NEW YORK DISCOUNT BROKERAGE FIRM QUICK & REILLY GROUP INC SAID IT EXPECTS TO REPORT FISCAL THIRDQUARTER EARNINGS TO BE IN THE RANGE OF 93 CENTS TO 97 CENTS A SHARE AN INCREASE OF OVER 60 FROM THE 56 MILLION OR 57 CENTS A SHARE FOR THE YEAR EARLIER PERIOD ENDED NOV 27 CHAIRMAN LESLIE C QUICK JR SAID THE GAINS REFLECT CONTINUED STRONG INVESTOR INTEREST IN THE SECURITIES MARKETS AS WELL AS BRANCH OFFICE EXPANSION MORE AGGRESSIVE MARKETING AND COST CONTROLS 9312030125 931203 TECHNOLOGY & HEALTH RESEARCHERS LINK TWO BACTERIA STRAINS TO KAWASAKI SYNDROME IN CHILDREN BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS SAID THEY HAVE LINKED TWO STRAINS OF POWERFUL BACTERIA TO KAWASAKI SYNDROME A LEADING CAUSE OF HEART DISEASE IN CHILDREN IF CONFIRMED BY OTHER SCIENTISTS THE FINDINGS COULD LEAD TO MORE EFFECTIVE TREATMENT FOR THE ILLNESS AND TO TESTS THAT COULD ENABLE DOCTORS TO DIAGNOSE IT MORE QUICKLY KAWASAKI SYNDROME AFFLICTS BETWEEN 3000 AND 5000 INFANTS AND YOUNG CHILDREN IN THE US EACH YEAR AND THOUSANDS MORE IN OTHER COUNTRIES ESPECIALLY JAPAN IN 15 TO 25 OF CASES THE ILLNESS TRIGGERS A MASSIVE IMMUNE SYSTEM RESPONSE THAT ATTACKS BLOOD VESSELS PARTICULARLY CORONARY ARTERIES LEADING TO CHRONIC HEART PROBLEMS AND SOMETIMES DEATH TREATMENT WITH A BLOOD PROTEIN CALLED GAMMA GLOBULIN PREVENTS OR REDUCES HEART DAMAGE IN MANY CASES BUT GENERALLY ONLY WHEN IT IS ADMINISTERED WITHIN 10 DAYS OF THE ONSET OF THE SYNDROME SINCE DOCTORS DON'T KNOW THE CAUSE OF KAWASAKI SYNDROME AND SINCE ITS SYMPTOMS INCLUDING FEVER INFLAMMATION AND RASH MIMIC MANY CHILDHOOD DISEASES TIMELY DIAGNOSIS IS DIFFICULT THERE ARE THOUSANDS OF CASES A WEEK THAT WALK INTO PEDIATRICIANS' OFFICES WITH SIMILAR SYMPTOMS SAID DONALD YM LEUNG HEAD OF PEDIATRIC ALLERGY/IMMUNOLOGY AT THE NATIONAL JEWISH CENTER FOR IMMUNOLOGY AND RESPIRATORY MEDICINE IN DENVER YOU NEED QUICK DIAGNOSIS TO START PROMPT THERAPY DR LEUNG LED A TEAM OF RESEARCHERS WHO IDENTIFIED TWO BACTERIA THAT SECRETE TOXINS THAT CAN UNLEASH EXPLOSIVE AND HARMFUL IMMUNESYSTEM REACTIONS AS POSSIBLE CAUSES OF THE SYNDROME IN A STUDY INVOLVING 16 KAWASAKI PATIENTS THEY FOUND A PREVIOUSLY UNKNOWN STRAIN OF STAPHYLOCOCCUS KNOWN FOR CAUSING TOXICSHOCK SYNDROME WOUND INFECTIONS AND ACUTE FOOD POISONING IN 11 AND A STRAIN OF STREPTOCOCCUS WHICH CAUSES STREP THROAT AND RHEUMATIC FEVER IN TWO OTHERS TOXINPRODUCING BACTERIA WERE FOUND IN JUST ONE OF 15 OTHER CHILDREN WITH FEVERS AND RASHES BUT WITHOUT THE SYNDROME WHO SERVED AS A CONTROL IT'S THE FIRST LEAD WE'VE HAD INTO ONE OF THE POTENTIAL CAUSES OF THE ILLNESS SAID DAVID R FULTON A COAUTHOR OF THE REPORT AND CHIEF OF PEDIATRIC CARDIOLOGY AT THE NEW ENGLAND MEDICAL CENTER'S FLOATING HOSPITAL BOSTON WHERE THE CHILDREN WERE TREATED SCIENTISTS AT THE UNIVERSITY OF MINNESOTA ALSO PARTICIPATED IN THE STUDY THE RESULTS ARE IN THE CURRENT ISSUE OF LANCET A BRITISH MEDICAL JOURNAL ONE REASON THE CAUSE OF THE SYNDROME HAS ELUDED RESEARCHERS SINCE IT WAS FIRST IDENTIFIED IN JAPAN IN 1967 IS THAT THE STAPHYLOCOCCUS STRAIN APPEARS HARMLESS IN ROUTINE LABORATORY CULTURES USED TO DETECT THE PRESENCE OF HARMFUL BACTERIA THE RESEARCHERS SAID THEY USED MORE ADVANCED TECHNIQUES AS WELL AS CLUES FROM PREVIOUS RESEARCH AT THE NATIONAL JEWISH CENTER TO FIND EVIDENCE THAT THE BACTERIA PRODUCED POISONS THAT SPURRED THE ATTACK ON CORONARY VESSELS IN ADDITION TO A DIAGNOSTIC TEST SCIENTISTS SAID A BETTER UNDERSTANDING OF THE CAUSE OF THE ILLNESS COULD LEAD TO IMPROVED TREATMENT IN SOME PATIENTS EVEN TIMELY INFUSION OF GAMMA GLOBULIN DOESN'T PREVENT DAMAGE TO THE HEART VESSELS AND SUBSEQUENT DISEASE 9312030124 931203 IBM IS TOP COMPANY FOR DEVELOPING GLOBAL EXECUTIVES HARVARD SURVEY SAYS BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP RANKS AS THE WORLD'S MOST HIGHLY REGARDED COMPANY IN DEVELOPING INTERNATIONAL EXECUTIVES CONCLUDES A NEW HARVARD UNIVERSITY SURVEY OF 929 SENIOR EXECUTIVES IN 30 COUNTRIES IBM OFFICIALS ATTRIBUTE THE RANKING TO THE PERSONAL INVOLVEMENT OF CHAIRMAN LOUIS V GERSTNER IN TOP MANAGERS' CAREER DEVELOPMENT AS WELL AS THE COMPANY'S HEAVY RELIANCE ON FOREIGN NATIONALS FOR OVERSEAS POSTS SURVEYED EXECUTIVES SAID BOTH EFFORTS WILL BECOME MORE COMMON AMONG COMPANIES COMMITTED TO GROOMING GLOBAL MANAGERS THE HARVARD STUDY APPARENTLY UNIQUE IN ITS BROAD SCOPE WAS SPONSORED BY AMROP INTERNATIONAL AN INTERNATIONAL PARTNERSHIP OF EXECUTIVE RECRUITERS AND IS SET FOR RELEASE NEXT WEEK THOSE POLLED WORK FOR MORE THAN 500 DIFFERENT COMPANIES AROUND THE WORLD IN THE SURVEY FOUR OTHER BIG MULTINATIONAL CONCERNS RANKED JUST AFTER IBM IN DEVELOPING THEIR INTERNATIONAL EXECUTIVES ROYAL DUTCH/SHELL GROUP UNILEVER PLC PROCTER & GAMBLE CO AND ABB ASEA BROWN BOVERI AG THOUGH 94 OF SURVEYED EXECUTIVES SAID DEVELOPING INTERNATIONAL EXECUTIVES WAS VITALLY IMPORTANT TO THEIR BUSINESSES ONLY 46 TERMED THEIR COMPANIES SUCCESSFUL IN FILLING INTERNATIONAL EXECUTIVE JOBS THESE EXECUTIVES ARE SAYING THAT IF THEY DON'T FIND BETTER WAYS TO DEVELOP GLOBAL EXECUTIVES THEY WILL BE HANDICAPPED AND PERHAPS BEATEN BY THEIR COMPETITION SAID C DOUGLAS CALDWELL VICE CHAIRMAN OF AMROP INTERNATIONAL AND CHAIRMAN OF CALDWELL PARTNERS A SEARCH FIRM IN TORONTO THOSE COMPANIES WHOSE CEOS ARE ACTIVELY INVOLVED IN EXECUTIVE CAREER DEVELOPMENT REPORT GREATER SUCCESS INTERNATIONALLY THAN THOSE WHOSE CEOS ARE NOT THE HARVARD REPORT SAID IBM FOR EXAMPLE GETS MORE THAN 50 OF ITS BUSINESS FROM OUTSIDE THE US MR GERSTNER THE NEW CHIEF EXECUTIVE IMITATES HIS PREDECESSOR JOHN AKERS BY ANNUALLY REVIEWING DETAILED CAREER DEVELOPMENT PLANS FOR THE COMPUTER CONCERN'S 1500 SENIOR MANAGERS GERALD CZARNECKI SENIOR VICE PRESIDENT OF HUMAN RESOURCES AND ADMINISTRATION SAID IN AN INTERVIEW THE REVIEW INCLUDES CHECKING WHETHER EXECUTIVES ARE GIVEN OPPORTUNITIES TO GAIN INTERNATIONAL EXPERIENCE MR CZARNECKI ADDED ABOUT 15 TO 20 OF THESE TOP EXECUTIVES HAVE WORKED ABROAD AND THAT PROPORTION WILL KEEP GOING UP HE SAID TO IMPROVE A COMPANY'S BATTING AVERAGE IN THIS AREA 69 OF THE SURVEY RESPONDENTS SAID THEIR CHIEF EXECUTIVE OFFICER WILL FORMULATE STRATEGIES FOR INTERNATIONAL CAREER DEVELOPMENT WITHIN FIVE YEARS UP FROM THE 38 TODAY POLLED EXECUTIVES PREDICTED SIMILARLY LARGE GAINS IN THE CEO'S EXPECTED INVOLVEMENT IN HIRING ASSIGNING AND ASSURING PROMOTIONS OF SUCCESSFUL INTERNATIONAL EXECUTIVES I ALWAYS HAVE AND WILL CONTINUE TO DRIVE THE ISSUE OF MULTINATIONAL EXPERIENCE FOR EXECUTIVES SAID STEPHEN KAUFMAN PRESIDENT AND CEO OF ARROW ELECTRONICS INC A BIG DISTRIBUTOR OF ELECTRONIC COMPONENTS IN MELVILLE NY I CONSIDER THAT A PRIME ROLE OF A CEO HE ADDED ARROW HAS 5000 EMPLOYEES WORLDWIDE INCLUDING 1600 IN EUROPE THE HARVARD STUDY ALSO DETECTED A SHIFT AWAY FROM BIG COMPANIES' TRADITIONAL PRACTICE OF SENDING EXECUTIVES OVERSEAS FROM THEIR HEADQUARTERS MORE THAN HALF OF THOSE SURVEYED NOW TRANSFER PEOPLE ABROAD FROM THE COMPANY'S HOME COUNTRY BUT JUST 34 EXPECT TO DO SO IN THE FUTURE INSTEAD 74 SAID THEY WILL RECRUIT MORE FOREIGN NATIONALS UP FROM 45 TODAY IBM ALSO IS ALTERING ITS STRATEGIES FOR DEVELOPING INTERNATIONAL MANAGERIAL TALENT MR CZARNECKI DISCLOSED ONLY A HANDFUL OF THE 25 OR 30 IBM EXECUTIVES WITH GLOBAL REPONSIBILITIES NOW COME FROM COUNTRIES OTHER THAN THE US HE NOTED WE WANT TO INCREASE THE INVOLVEMENT OF MORE SENIOR MANAGEMENT FROM OUTSIDE THE US HE CONTINUED HE SAID IBM INTENDS TO DO THIS BY BRINGING MORE FOREIGN EXECUTIVES HERE FOR ASSIGNMENTS AT HEADQUARTERS OR AT OPERATING DIVISIONS 9312030123 931203 WHO'S NEWS INGERSOLLRAND CO INGERSOLLRAND CO WOODCLIFF LAKE NJ J FRANK TRAVIS 57 YEARS OLD PRESIDENT OF THE TORRINGTON CO BEARINGS AND COMPONENTS UNIT OF THIS MANUFACTURER OF INDUSTRIAL EQUIPMENT WAS PROMOTED TO THE ADDITIONAL POSITION OF EXECUTIVE VICE PRESIDENT A NEW POST 9312030122 931203 INTERNATIONAL HANSON AIMS TO RAISE UP TO 148 BILLION BY FLOATING 2 UNITS SELLING OTHER LINES BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON PRESSED BY HIGH DEBT AND REDUCED EARNINGS HANSON PLC SAID THAT IT WILL FLOAT ON THE MARKET ITS HOUSEBUILDING BUSINESS AND THAT IT WILL MAKE OTHER DISPOSALS RAISING AS MUCH AS 1 BILLION 148 BILLION THE ANGLOAMERICAN CONGLOMERATE YESTERDAY REPORTED PRETAX PROFIT FOR THE YEAR ENDED SEPT 30 FELL 21 TO 102 BILLION FROM 129 BILLION THE YEAR BEFORE THE RESULTS WERE A BIT WORSE THAN ANALYSTS EXPECTED AND INVESTORS' UNHAPPINESS WAS COMPOUNDED BY THE FACT THAT THE COMPANY FAILED TO RAISE ITS DIVIDEND HANSON SHARES IN LONDON FELL 16 PENCE TO 2685 PENCE IN THE US WHERE SHARES ARE TRADED AS AMERICAN DEPOSITARY RECEIPTS HANSON FELL 1375 TO 19625 THIS IS THE FIRST TIME SINCE THE COMPANY'S FOUNDATION THAT WE'VE NOT ANNOUNCED A DIVIDEND INCREASE AT THIS TIME OF THE YEAR SAID DERRICK BONHAM CHIEF EXECUTIVE OF HANSON PLC HE BLAMED LOWER PROFITS CAUSED BY A COAL STRIKE IN THE US AND RECESSIONS IN THE US AND UK HANSON WILL PAY A QUARTERLY DIVIDEND OF 285 PENCE A SHARE ON JAN 4 FOR THE FIRST TIME EVER HANSON EXECUTIVES CALLED A NEWS CONFERENCE TO ANNOUNCE RESULTS THE COMPANY HAS BEEN TRYING TO BURNISH ITS IMAGE IN THE WAKE OF FAILED TAKEOVER BIDS IN THE UK AND THE END OF NEARLY TWO DECADES OF UNBROKEN EARNINGS INCREASES EXECUTIVES SAID THE COMPANY PLANS BY THE END OF MARCH TO FLOAT ON THE STOCK MARKET BEAZER HOMES ITS UK BUILDER THAT LAST YEAR SOLD 282 MILLION OF HOUSES LIKEWISE HANSON INDUSTRIES THE US ARM WILL OFFER ON THE MARKET 70 OF BEAZER HOMES USA INC THE US HOMEBUILDING UNIT BEAZER OF THE US WILL ALSO MAKE A 125 MILLION OFFERING OF SENIOR NOTES IN THE MOST RECENT FISCAL YEAR BEAZER HOMES SOLD ABOUT 2100 HOMES FOR 274 MILLION ANALYSTS SAID THAT BASED ON UK PRICE/EARNINGS RATIO OF 28 TO 30 FOR HOUSING CONCERNS WITHOUT DEBT THE BEAZER SPINOFF COULD ALONE RAISE ALMOST 1 BILLION IN A ROUNDABOUT CONFIRMATION OF THAT BALLPARK FIGURE A HANSON EXECUTIVE SAID THAT INCLUDING OTHER DISPOSALS HANSON HOPES TO RAISE AS MUCH AS 1 BILLION IN THE NEXT 12 MONTHS HANSON HAS SAID IT WILL SELL SMALLER UNITS SUCH AS FABERWARE COOKWARE THAT AREN'T BIG ENOUGH TO MAKE A LARGE IMPACT ON ITS BOTTOM LINE IT HAS ALREADY AGREED TO SELL HANSON OFFICE PRODUCTS FOR 110 MILLION AND THE AXELSON OILEQUIPMENT BUSINESS FOR 56 MILLION IT IS THE 25 BILLION IN DEBT THAT HANSON ASSUMED THROUGH ITS RECENT QUANTUM CHEMICAL ACQUISITION IN THE US THAT IS DRIVING DISPOSALS THE COMPANY'S DEBTTOEQUITY RATIO STOOD AT 86 FOR THE YEAR ENDED SEPT 30 IN ADDITION THE COAL STRIKE WHICH HAS DRAGGED ON SINCE FEBRUARY HAS COST HANSON 125 MILLION SO FAR EXECUTIVES DEFENDED THEIR STANCE IN THE STRIKE SAYING THEY DIDN'T WANT TO SACRIFICE LONGTERM PROFITABILITY OF THE UNIT PEABODY HOLDING FOR A SHORTTERM GAIN IN THE COMPANY'S NEWS RELEASE LORD HANSON CHAIRMAN SAID A POSITIVE RECOVERY IS NOW EVIDENT IN MOST OF OUR MAJOR MARKETS AND WE BELIEVE TRADING PROFIT WILL CONTINUE TO IMPROVE IN 1994 HOWEVER FINANCE DIRECTOR WILLIAM LANDUYT WARNED THAT HANSON'S NET INTEREST EXPENSE IN 1994 WILL INCREASE ABOUT 275 MILLION FURTHER IN THE YEAR ENDING SEPT 30 1994 HANSON WILL HAVE SIGNIFICANT EXCEPTIONAL PROFIT BECAUSE OF THE PLANNED DISPOSALS IN THE 1993 FISCAL YEAR SUCH PROFITS WERE 24 MILLION DOWN FROM 172 MILLION IN FISCAL 1992 9312030121 931203 WHO'S NEWS STARRETT HOUSING CORP STARRETT HOUSING CORP NEW YORK INVESTOR PAUL MILSTEIN 71 YEARS OLD WAS ELECTED CHAIRMAN OF THE FOURMEMBER BOARD OF THIS CONSTRUCTION CONCERN HE SUCCEEDS HENRY BENACH 76 WHO WILL RETIRE DEC 31 MR MILSTEIN ALSO WAS CHAIRMAN BETWEEN 1967 AND 1977 9312030120 931203 TECHNOLOGY AGENCY ENDS WAIT FOR INTUIT TO MERGE WITH CHIPSOFT INC MENLO PARK CALIF INTUIT INC SAID THE JUSTICE DEPARTMENT ENDED THE WAITING PERIOD FOR INTUIT'S PROPOSED MERGER WITH CHIPSOFT INC AND CLEARED THE WAY FOR THE UNION OF TWO POWERHOUSES OF PERSONALFINANCE SOFTWARE FACED WITH GOVERNMENT ANTITRUST OBJECTIONS INTUIT ON WEDNESDAY DISCLOSED THAT IT TERMINATED AN OPTION TO ACQUIRE LEGAL KNOWLEDGE SYSTEMS INC IN EXCHANGE FOR RELINQUISHING RIGHTS TO THE TAXPREPARATION SOFTWARE MAKER INTUIT SAID THE JUSTICE DEPARTMENT IN INFORMAL TALKS INDICATED IT WOULD CUT SHORT THE WAITING PERIOD FOR THE CHIPSOFT MERGER THE AGENCY LIFTED THE WAITING PERIOD YESTERDAY INTUIT AND CHIPSOFT NOW PLAN TO HOLD SHAREHOLDER MEETINGS DEC 10 TO RATIFY THE MERGER WHICH IS EXPECTED TO CLOSE SHORTLY THEREAFTER INTUIT STOCK CLOSED AT 41125 DOWN 625 CENTS IN NASDAQ STOCK MARKET TRADING INTUIT CREATOR OF POPULAR PROGRAMS FOR PERSONAL AND SMALLBUSINESS FINANCE SUCH AS QUICKEN IN SEPTEMBER AGREED TO ACQUIRE CHIPSOFT IN A STOCK SWAP VALUED AT ABOUT 300 MILLION INTUIT SAID IT PAID LEGAL KNOWLEDGE SHAREHOLDERS 13 MILLION IN CONNECTION WITH TERMINATION OF ITS AGREEMENT THE PAYMENT IS TO BE ACCOUNTED FOR AS INDIRECT COSTS OF THE CHIPSOFT MERGER AND ISN'T EXPECTED TO HAVE MAJOR IMPACT ON INTUIT'S FINANCIAL RESULTS SEPARATELY INTUIT SAID JAMES HEEGER VICE PRESIDENT OF OPERATIONS WILL ASSUME THE ROLE OF VICE PRESIDENT AND GENERAL MANAGER OF INTUIT'S SUPPLIES BUSINESS THAT POSITION WAS HELD BY THOMAS LEFEVRE WHO RESIGNED BUT WILL CONTINUE AS A CONSULTANT 9312030119 931203 YOUR MONEY MATTERS WEEKEND REPORT UNDERFUNDED PENSION PLAN DON'T PANIC YET BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL FOR MILLIONS OF PEOPLE COUNTING ON COMPANY PENSIONS TO SEE THEM THROUGH THE GOLDEN YEARS OF RETIREMENT THE NEWS LAST WEEK FROM THE PENSION BENEFIT GUARANTEE CORP WAS CHILLING THE GOVERNMENT AGENCY WHICH INSURES PRIVATE PENSION PLANS SAID THE ALREADY SERIOUS PROBLEM OF UNDERFUNDING IN MANY CORPORATE PLANS GREW A LOT WORSE LAST YEAR AT THE 50 MOSTUNDERFUNDED PRIVATE PENSION PLANS IT SAID THE GULF BETWEEN THE BENEFITS PROMISED TO FUTURE RETIREES AND THE MONEY SET ASIDE TO PAY FOR THOSE BENEFITS WIDENED BY NEARLY A THIRD IN 1992 TO A WHOPPING 3805 BILLION AT A TIME WHEN MANY WORKERS' SENSE OF SECURITY HAS ALREADY BEEN SEVERELY UNDERMINED BY WAVE AFTER WAVE OF MERGERS BUYOUTS AND CORPORATE RETRENCHMENTS THE NEWS COULD ONLY FUEL ANXIETY BUT DOES THE REPORT REALLY MEAN THAT EMPLOYEES OF COMPANIES WITH UNDERFUNDED PLANS FACE PENURY INSTEAD OF A SECURE PENSION IN THEIR OLD AGE NOT LIKELY IT'S REALLY ONLY A REPORTING ILLUSION SAYS DREW DEMAKIS DIRECTOR AND SENIOR CONSULTANT WITH ROGERS CASEY & ASSOCIATES A PENSIONCONSULTING FIRM TO UNDERSTAND WHY YOU HAVE TO LOOK BEHIND ALL THE SCARY HEADLINES PART OF THE STORY IS THAT THE NATION'S BALANCESHEET WATCHDOGS THE FINANCIAL ACCOUNTING STANDARDS BOARD AND THE SECURITIES AND EXCHANGE COMMISSION HAVE TOUGHENED UP THE ASSUMPTIONS THAT COMPANIES MUST USE TO FORECAST FUTURE PENSION OBLIGATIONS WHEN THE NEW ACCOUNTING STANDARDS WERE APPLIED THE PAPER LOSSES OF PENSION FUNDS SOARED BUT THE REAL ROOT OF THE CURRENT UNDERFUNDING PROBLEM ISN'T CORPORATE CHICANERY OR NEGLECT BUT THE SHARP DROP IN INTEREST RATES DURING THE PAST FEW YEARS DIFFERENT INTERESTRATE ASSUMPTIONS CAN RADICALLY CHANGE THE PRESENT VALUE OF COMPANIES' FUTURE PENSION COSTS THE LOWER THE INTEREST RATE THE MORE MONEY A COMPANY MUST SET ASIDE TODAY IN ORDER TO COVER A GIVEN PENSION LIABILITY TOMORROW THIS IS ONLY SLIGHTLY MORE COMPLICATED THAN UNDERSTANDING INSTRUCTIONS ON HOW TO PROGRAM A VCR BUT FOR THE SAKE OF ILLUSTRATION COMPARE A PENSION PLAN WITH THE SITUATION OF THE HYPOTHETICAL YOUNG FAMILY WHO HAVE STARTED A COLLEGE SAVINGS PLAN TO FUND COLLEGE TUITION EXPENSES FOR THEIR NEWBORN CHILD THE YOUNGS FIGURE THAT A FOURYEAR COLLEGE EDUCATION WILL COST 150000 BY THE TIME THEIR CHILD STARTS CLASSES IN 2011 IMAGINE THAT LONGTERM INTEREST RATES WERE STILL 10 AS THEY WERE JUST A FEW YEARS AGO THE YOUNGS COULD HAVE BOUGHT 27000 OF ZEROCOUPON TREASURY BONDS YIELDING 10 WHICH WOULD MATURE IN 18 YEARS AT A FACE VALUE OF 150000 INTEREST ON ZEROCOUPON BONDS ISN'T PAID OUT IN CASH BUT IS DISCOUNTED FROM THE BOND'S PRICE IN SUCH A WAY THAT THEY REACH FACE VALUE AT MATURITY UNFORTUNATELY FOR THE YOUNGS HOWEVER RATES ARE NO LONGER IN DOUBLEDIGIT TERRITORY AT TODAY'S RATES OF LESS THAN 7 THEY'D HAVE TO PUT 45000 IN ZEROCOUPON BONDS TODAY TO MEET THOSE SAME TUITION COSTS BY THE TIME JUNIOR GETS TO COLLEGE THE RESULT ALL THINGS BEING EQUAL FALLING INTEREST RATES HAVE CAUSED THE PRESENT VALUE OF THE YOUNGS' TUITION LIABILITY TO RISE BY 66 BY THE SAME TOKEN WHEN INTEREST RATES CHANGE ACTUARIES HAVE TO CHANGE THE AMOUNT OF MONEY THAT MUST BE EARMARKED TO OFFSET COMPANIES' FUTURE PENSION LIABILITIES AND BECAUSE PENSION LIABILITIES TEND TO BE QUITE LONGTERM THEY QUICKLY INFLATE AS INTEREST RATES FALL AS A RULE OF THUMB FOR EVERY ONEPERCENTAGEPOINT DECLINE IN INTEREST RATES YOU CAN EXPECT A 20 INCREASE IN LIABILITIES FIGURES ANN O'CONNELL NATIONAL DEFINEDBENEFIT BUSINESS LEADER FOR THE ACCOUNTING FIRM COOPERS & LYBRAND AS IF THIS WEREN'T BAD ENOUGH FALLING INTEREST RATES ARE COINCIDING WITH A LONG PERIOD IN WHICH COMPANIES HAVE CUT BACK ON CONTRIBUTIONS TO THEIR PENSION PLANS FOR THE MOST PART THEY DIDN'T DO THAT TO SAVE MONEY BUT TO COMPLY WITH TAX LAWS WHEN PLANS ARE FULLY FUNDED COMPANIES CAN'T JUST ADD CONTRIBUTIONS EVEN IF THEY WANT TO JUST AS THE INTERNAL REVENUE SERVICE SETS 2000 ANNUAL LIMITS ON MR YOUNG'S CONTRIBUTIONS TO HIS INDIVIDUAL RETIREMENT ACCOUNT THE IRS ALSO PUTS FULLFUNDING LIMITATIONS ON TAXDEDUCTIBLE CONTRIBUTIONS COMPANIES MAKE TO PENSION PLANS CONTRIBUTIONS CAN'T SIGNIFICANTLY EXCEED THE AMOUNTS NEEDED TO KEEP THE PLANS FULLY FUNDED INDEED A LARGE PERCENTAGE OF PLANS WERE FULLY FUNDED UNTIL A STROKE OF AN ACTUARY'S PEN PUSHED THEM INTO THE RED PEOPLE GET CONFUSED BY WHAT THEY'RE READING REGARDING THE ACCOUNTING REQUIREMENTS SAYS MS O'CONNELL THEY'RE CONFUSING THE FINANCIAL REPORTING WITH THE FUNDING AND JUMPING TO THE CONCLUSION THAT A CHANGE IN THE ACCOUNTING REFLECTS A CHANGE IN THE ACTUAL FUNDING LEVELS THE CONFLUENCE OF THESE TWO TRENDS DECLINING INTEREST RATES AND DECLINING CONTRIBUTIONS MAY HAVE GONE UNNOTICED EXCEPT BY ACTUARIES HAD THE SEC NOT BECOME CONCERNED ABOUT UNDERFUNDING BECAUSE OF SINKING INTEREST RATES THE SEC ANNOUNCED IT WANTS COMPANIES TO REDUCE A KEY RATE USED TO CALCULATE FUTURE LIABILITIES TO 7 FROM THE 8 OR MORE THAT MANY COMPANIES CURRENTLY USE SO WHAT'S THE BOTTOM LINE FOR WOULDBE RETIREES CORPORATIONS THAT COME UP SHORT HAVE SEVERAL WAYS TO RETURN THEIR PENSION PLANS TO FULLY FUNDED STATUS LIKE THE YOUNGS WHO MIGHT DECIDE OVER TIME THAT COLLEGE WAS REALLY GOING TO COST MORE THAN THE 150000 THEY PREDICTED MANY COMPANIES COULD SAVE MORE IN FACT AS LONG AS A COMPANY IS STILL A GOING CONCERN IT'S REQUIRED BY LAW TO SET ASIDE ADDITIONAL CONTRIBUTIONS IF ITS PENSION PLAN IS UNDERFUNDED BUT MOST COMPANIES ALSO HAVE OTHER WAYS TO DEAL WITH THE PROBLEM FOR INSTANCE THEY MIGHT CHANGE CERTAIN ASSUMPTIONS USED TO FIGURE THEIR LONGTERM LIABILITIES SUCH AS SALARY GROWTH RATES AND THE TENURE OF THEIR WORKERS IN FACT MANY COMPANIES PROBABLY WILL DO JUST THAT SINCE THEY CURRENTLY USE VERY GENEROUS ASSUMPTIONS ABOUT WAGE INCREASES AND OTHER FACTORS THAT TEND TO OVERSTATE THEIR FUTURE PENSION COSTS TYPICALLY COMPANIES FORECAST WAGE GROWTH RATES OF 5 REFLECTING A HISTORY OF HIGHER INFLATION SAYS MR DEMAKIS OF ROGERS CASEY IN THE FUTURE HE SAYS THEY MAY NOT EXPERIENCE THE SALARY GROWTH THEY'RE FORECASTING THEN OF COURSE THERE'S ALWAYS THE POSSIBILITY THAT INTEREST RATES WILL SIMPLY GO BACK UP CAUSING COMPANIES TO BECOME FULLY FUNDED OR EVEN OVERFUNDED WITHOUT LIFTING A FINGER WHEN INFLATION RISES AND INTEREST RATES GO UP THIS WHOLE SITUATION WILL GO INTO REVERSE SAYS SCOTT ELLIOTT MANAGER OF QUALITATIVE CONSULTING FOR CALLAN ASSOCIATES INC A PENSIONCONSULTING FIRM BECAUSE COMPANIES HAVE SO MUCH ROOM TO MANEUVER BEING AN EMPLOYEE IN AN UNDERFUNDED PLAN REALLY IS ONLY AN ISSUE IF THE PLAN TERMINATES COOPERS & LYBRAND'S MS O'CONNELL SAYS IF YOUR EMPLOYER IS A VIABLE GOING CONCERN YOU HAVE LITTLE TO WORRY ABOUT AND EVEN IF WORST CAME TO WORST AND THE COMPANY WENT OUT OF BUSINESS THE PENSION BENEFIT GUARANTEE CORP WOULD COVER A LOT OF THE UNMET LIABILITIES THUS WORKERS AT MOST COMPANIES MAY HAVE LITTLE TO WORRY ABOUT AND SHOULD GET USED TO THE NATURAL CYCLE OF UNDERFUNDING AND OVERFUNDING EXPERTS SAY AS INTEREST RATES GO THROUGH THEIR NORMAL CYCLE OF RISING AND FALLING THIS DANCE BETWEEN REGULATORS AND PENSION ACTUARIES WILL RECUR BUT SUCH CONTROVERSY IS LIKELY TO ACCELERATE THE TREND AMONG EMPLOYERS TO DISSOLVE THEIR COMPANY PENSION PLANS AND REPLACE THEM EITHER WITH NOTHING AT ALL OR WITH DEFINED CONTRIBUTION PLANS WHERE EMPLOYEES NOT THE COMPANIES TAKE ON THE RISK OF NOT HAVING ENOUGH TO RETIRE ON LONGTERM CAREER EMPLOYEES WOULD BE BETTER OFF WITH A COMPANY PENSION THAN WITH A DEFINEDCONTRIBUTION PLAN SAYS MS O'CONNELL COMPANY PLANS ARE ADJUSTED FOR INFLATION AND THE INVESTMENT RISK IS ON THE EMPLOYER RATHER THAN ON THE EMPLOYEE SHE SAYS SO IF THE PLAN DOESN'T EARN AS MUCH AS EXPECTED THE EMPLOYER MUST MAKE UP THE SHORTFALL 9312030118 931203 ECONOMY CRUDE OIL FUTURES PRICES SKID TO BELOW 15 A BARREL NEW YORK CRUDE OIL FUTURES PRICES FELL BELOW 15 A BARREL AS BEARISH DATA CONTINUED TO FLOW INTO THE MARKETPLACE THE PRICE OF CRUDE FOR JANUARY DELIVERY TUMBLED BY 53 CENTS A BARREL TO 1495 A BARREL IN TUMULTUOUS TRADING PARTICULARLY DEPRESSING PRICES WERE NUMBERS RELEASED BY THE ENERGY DEPARTMENT THAT SHOWED OIL INVENTORIES IN THE US CONTINUED TO GROW SHARPLY LAST WEEK INFORMATION FROM THE AMERICAN PETROLEUM INSTITUTE HAD INDICATED A SIMILAR TREND ADDING TO PRESSURE ON PRICES WERE REPORTS THAT UNUSUALLY SEVERE WEATHER WHICH HAD BEEN HAMPERING THE FLOW OF OIL FROM THE PROLIFIC OIL FIELDS OF THE NORTH SEA AND THE REPUBLICS OF THE FORMER SOVIET UNION WAS FINALLY BREAKING UP CONTINUED CONCERN THAT IRAQ AND THE UNITED NATIONS ARE MOVING CLOSER TO A COMPROMISE THAT WOULD ALLOW IRAQI CRUDE INTO THE MARKET ALSO HUNG OVER THE MARKETPLACE 9312030117 931203 TECHNOLOGY MOTOROLA LAUNCHES NEW SYSTEMS SCOTTSDALE ARIZ MOTOROLA INC SAID ITS GOVERNMENT AND SYSTEMS TECHNOLOGY GROUP INTRODUCED FOUR NEW SATELLITE COMMUNICATIONS SATCOM SYSTEMS FOR SHIPBOARD AND MILITARY USE THE TURNKEY SYSTEMS ARE DESIGNED TO ENABLE EASY INSTALLATION BY ONE SEAMAN OR SOLDIER AND TO WITHSTAND HARSH ENVIRONMENTAL CONDITIONS THE SYSTEMS MAY INCLUDE REMOTE CONTROL AND ENCRYPTION FEATURES MOTOROLA BASED IN SCHAUMBURG ILL PRODUCES AN ARRAY OF COMMUNICATIONS DEVICES AND ELECTRONIC COMPONENTS LED BY PAGERS CELLULAR PHONES TWOWAYRADIOS AND MICROCHIPS 9312030116 931203 PRUDENTIAL INFLATED VALUE OF TWO FUNDS NOT ONE WHISTLEBLOWER'S LAWYER SAYS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA INFLATED THE VALUE ON BOTH REALESTATE FUNDS IT SOLD TO PENSION PLANS NOT JUST ON ONE FUND CLAIMS AN ATTORNEY REPRESENTING A SENIOR PRUDENTIAL OFFICIAL IN A WHISTLEBLOWER LAWSUIT NANCY ERIKA SMITH WHO REPRESENTS DEMOTED PRUDENTIAL OFFICIAL MARK JORGENSEN SAID THAT HER CLIENT'S ALLEGATIONS OF INFLATED RETURNS AT THE PRUDENTIAL REAL ESTATE INVESTMENT ACCOUNT OR PRISA ALSO APPLY TO PRISA II PRUDENTIAL'S OTHER HIGHLY SUCCESSFUL REALESTATE FUND ALLEGATIONS ABOUT PRISA HAVE BEEN PREVIOUSLY REPORTED BUT THE QUESTIONS ABOUT PRISA II ARE NEW MR JORGENSEN'S LAWSUIT DETAILS ALLEGED FRAUD IN PRISA NOT IN PRISA II BUT MS SMITH SAID SHE PLANS TO PRESENT EVIDENCE IN COURT ABOUT BOTH FUNDS THERE WAS A SYSTEMATIC PROCEDURE OF SUBSTANTIALLY INFLATING RETURNS MS SMITH SAID PRUDENTIAL HAS SAID MR JORGENSEN'S ALLEGATIONS ARE GROUNDLESS BUT DECLINED TO COMMENT ON MS SMITH'S ASSERTIONS ABOUT PRISA II WE WILL RESPOND IN COURT SAID A SPOKESMAN THE QUESTIONS ABOUT WHETHER PRUDENTIAL INFLATED RETURNS ON ITS FUNDS WORRY PENSIONFUND MANAGERS WHO FEAR THEY MIGHT HAVE TO RESTATE INVESTMENT RETURNS IF MR JORGENSEN'S ALLEGATIONS PROVE CORRECT ALTHOUGH MR JORGENSEN OBVIOUSLY IS A DISGRUNTLED EMPLOYEE FUND MANAGERS ARE RELUCTANT TO DISMISS COMPLETELY HIS ALLEGATIONS BECAUSE OF HIS STANDING IN THE INDUSTRY BEFORE JOINING PRUDENTIAL MR JORGENSEN 52 YEARS OLD EARNED PRAISE FOR HIS WORK AS A CONSULTANT TO A LARGE PENSION FUND THE CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM PRISA II WITH ASSETS LISTED AT 600 MILLION IS ONE OF THE COUNTRY'S MOST SUCCESSFUL REALESTATE FUNDS IN THE LAST FIVE YEARS ITS RETURNS CAME IN SIXTH AMONG 79 FUNDS RANKED BY TOWNSEND GROUP A CLEVELANDBASED CONSULTING FIRM THE FUND IS NOW TRYING TO RAISE ANOTHER 200 MILLION FROM INVESTORS PRUDENTIAL HAS SAID MR JORGENSEN'S ALLEGATIONS AROSE AFTER PRUDENTIAL DEMOTED HIM FROM HIS POSITION AS A FUND MANAGER BUT IN A LAWSUIT FILED NOV 4 AGAINST PRUDENTIAL IN NEW JERSEY SUPERIOR COURT IN NEWARK MR JORGENSEN ALLEGED THAT HE WAS DISMISSED BECAUSE HE BLEW THE WHISTLE ON THE INFLATED APPRAISALS OF REALESTATE PROPERTIES IN A LETTER THAT PRUDENTIAL SENT TO INSTITUTIONAL INVESTORS LAST WEEK IN RESPONSE TO MR JORGENSEN'S LAWSUIT THE COMPANY SAID IT PLANS TO HIRE AN INDEPENDENT THIRD PARTY TO REVIEW THE VALUES OF PROPERTIES HELD BY PRISA BUT MAKES NO MENTION OF PRISA II THE LETTER ALSO SAID THAT THE ONLY SIGNIFICANT APPRAISAL ISSUE IS THAT OF THE NEW YORK HILTON A MANHATTAN HOTEL WORTH SEVERAL HUNDRED MILLION DOLLARS MS SMITH HOWEVER SAID OTHER PROPERTIES ARE INVOLVED INCLUDING AN OFFICE BUILDING IN DOWNTOWN MANHATTAN LOCATED AT 130 JOHN ST OWNED BY PRISA II PRUDENTIAL SAID THAT APPRAISALS ON ITS PROPERTIES WERE MADE BY OUTSIDE APPRAISAL FIRMS AND THAT THE COMPANY DID NOT CHALLENGE THEIR JUDGMENTS MS SMITH SAID THE EVIDENCE WILL SHOW THAT PRUDENTIAL INFLUENCED THE APPRAISAL PROCESS THE APPRAISERS WEREN'T AS INDEPENDENT AS PRUDENTIAL MAKES IT SOUND SHE SAID PRUDENTIAL DECLINED TO COMMENT ON THE APPRAISALS 9312030115 931203 MARKETING & MEDIA US NEWS MEDIA SCRAMBLE TO COMPLY WITH ORDER IN CANADIAN MURDER CASE BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL A JUDGE'S ORDER IN A GRISLY CANADIAN MURDER CASE IS FORCING A NUMBER OF US MEDIA OUTLETS TO SCRAMBLE TO COMPLY WITH A SWEEPING PUBLICATION BAN FOR THE FIRST TIME IN ITS HISTORY NEWSWEEK MAGAZINE PULLED A STORY FROM THE 50000 COPIES IT SELLS IN CANADA WEEKLY A BUFFALO NY NEWSPAPER FACED SEIZURE OF ITS USUAL SHIPMENTS TO CANADA IF IT DIDN'T REMOVE A STORY FROM ITS FRONT PAGE AFFILIATES OF THE NBC TELEVISION NETWORK IN COMMUNITIES ALONG THE US /CANADA BORDER OPTED TO SHOW A VERSION OF A CURRENTAFFAIRS SHOW THAT BLACKED OUT 30 SECONDS OF INFORMATION ABOUT THE MURDERS ALL THIS IS HAPPENING THANKS TO AN UNUSUALLY TOUGH PUBLICATION BAN IMPOSED BY A CANADIAN COURT AHEAD OF THE TRIAL OF ONE OF TWO PEOPLE CHARGED IN THE MURDERS OF TWO TEENAGED GIRLS IN SOUTHWESTERN ONTARIO WHILE ONE DEFENDANT KARLA HOMOLKA HAS ALREADY BEEN CONVICTED OF MANSLAUGHTER AND SENTENCED TO 12 YEARS IN JAIL HER ESTRANGED HUSBAND CHARGED WITH MURDER MIGHT NOT GO TO TRIAL FOR ANOTHER TWO YEARS IN THE MEANTIME CITIZENS IN BOTH ONTARIO AND UPSTATE NEW YORK ARE EAGERLY SEARCHING FOR INFORMATION ON THE CASE BUT THE JUDGE IN MS HOMOLKA'S TRIAL BARRED SPECTATORS AND FOREIGN MEDIA FROM THE COURTROOM WHILE BANNING PUBLICATION OF PRETRIAL TESTIMONY ISN'T UNUSUAL IN CANADA THE SWEEPING NATURE OF THE BAN IMPOSED ON THE HANDFUL OF RELATIVES AND CANADIAN MEDIA ALLOWED TO ATTEND THE TRIAL ASTONISHED EVEN CANADIAN REPORTERS USED TO SUCH RESTRICTIONS UNDER THE TERMS OF THAT ORDER NOW UNDER APPEAL BY CANADIAN PAPERS NO ONE MAY DISCLOSE ANY OF THE PROCEEDINGS OTHER THAN THE VERDICT AND SENTENCE UNTIL THE TRIAL OF MS HOMOLKA'S HUSBAND PAUL TEALE IS COMPLETE THAT MAY BE TWO YEARS FROM NOW BUT WHILE US AND INTERNATIONAL MEDIA ARE PUTTING TOGETHER DETAILS OF THE MURDERS AND THE TRIAL US NEWSPAPERS MAGAZINES AND BROADCAST OUTLETS ARE TRYING TO MAKE SURE THAT INFORMATION DOESN'T MAKE IT BACK TO CANADA FOR EXAMPLE THE WASHINGTON POST IS REFUSING TO MAIL BACK COPIES OF AN ISSUE CONTAINING AN EXTENSIVE STORY ON THE MURDERS AND THE TRIAL TESTIMONY TO ADDRESSES IN CANADA A BUFFALO NEWSPAPER REPRINTED THE STORY BUT SUBSTITUTED ANOTHER ARTICLE IN EDITIONS IT SELLS IN CANADA TO AVOID SEIZURE OF THE PAPERS AND PROTECT DISTRIBUTORS FROM ARREST AND CRIMINAL CHARGES THE CANADIAN CUSTOMS FOLKS LOOKED THROUGH EVERY PILE OF PAPERS WE SENT ACROSS THE BORDER TO MAKE SURE THE HOMOLKA STORY WASN'T THERE SAID STAN EVANS MANAGING EDITOR OF THE BUFFALO NEWS ANY CANADIAN CROSSING THE BORDER WHO BOUGHT MORE THAN ONE COPY HAD TO GIVE IT UP WHEN THEY RETURNED HOME BUFFALO TV STATIONS WERE AMONG THE MOST VOCAL OPPONENTS OF THE PUBLICATION BAN WHEN IT WAS IMPOSED LAST SUMMER BUT EVEN THEY NOW ARE SEEKING WAYS TO AVOID INADVERTENTLY BROADCASTING BANNED INFORMATION SINCE SIGNALS CAN BE PICKED UP IN CANADA ONLY A FEW MILES AWAY FOR EXAMPLE WHEN NBC'S CURRENTAFFAIRS SHOW NOW AIRED A SEGMENT ON THE MURDERS THE TRIAL AND THE PUBLICATION BAN ON WEDNESDAY ITS BUFFALO AFFILIATE WGRZTV OPTED TO AIR A VERSION WITH 30 SECONDS OF DEAD AIR REPLACING THE PORTION OF THE PROGRAM THAT DISCUSSED INFORMATION SURROUNDING THE MURDERS THAT'S COVERED BY THE BAN LET'S FACE IT THIS ISN'T LIKE THE PENTAGON PAPERS OR WATERGATE SAID STEPHEN COHEN PRESIDENT OF THE TELEVISION STATION OUR POSITION IS THAT WE'LL LIVE WITH THE PROHIBITIONS EVEN THOUGH WE ABHOR THEM MR COHEN WHO SPENT TWO YEARS NEGOTIATING ACCESS TO US COURTROOMS FOR THE CABLE COURT TV CHANNEL IN CONTROVERSIAL CASES SUCH AS THE RODNEY KING BEATING DESCRIBES THE SITUATION AS AN UNCOMFORTABLE POSITION TO BE IN AS A BROADCASTER BUT HE SAID HE HAS TO RESPECT CANADIAN COURT ORDERS AS HE WOULD THOSE ISSUED BY A US COURT UNLIKE THE CANADIAN SYSTEM WHICH ALLOWS FOR SUCH BANS US COURTS AVOID PLACING RESTRICTIONS ON THE REPORTING OF A TRIAL INSTEAD US COURTS FOCUS ON ORDERING JURORS TO AVOID NEWSPAPER OR TV REPORTS ABOUT A CASE AND REJECT JURORS WHO AREN'T CONSIDERED OBJECTIVE A TOTAL OF 16 NBC AFFILIATES OPTED TO AIR THE VERSION CONTAINING THE BLANKEDOUT INFORMATION THAT WAS A RELIEF TO CANADIAN CABLE COMPANIES SUCH AS TORONTOBASED ROGERS CABLESYSTEMS WHICH FACES CRIMINAL CHARGES IF IT DOESN'T BLACK OUT ANY OFFENDING DETAILS WE HAVE TO MONITOR 10 TELEVISION SIGNALS 18 HOURS A DAY SAYS PHIL LIND VICE CHAIRMAN OF THE UNIT OF ROGERS COMMUNICATIONS INC IT'S IMPOSSIBLE WE'RE GETTING HUNDREDS OF COMPLAINTS FROM SUBSCRIBERS WHO FIND IT OFFENSIVE YESTERDAY ROGERS SAID IT WOULD FILE ITS OWN APPEAL OF THE BAN ARGUING IT SHOULDN'T SERVE AS A CENSOR OF PROGRAMMING SERVICES DESPITE THE BEST EFFORTS OF LAWENFORCEMENT OFFICIALS AND EVEN THE MEDIA ITSELF DETAILS OF THE CRIMES AND THE TRIAL ARE SPREADING LIKE WILDFIRE COPIES OF THE WASHINGTON POST STORY WERE HANDED OUT TO SUBWAY PASSENGERS IN TORONTO AND OTHER TRANSIT PASSENGERS FOUND ON BUS AND SUBWAY SEATS TRANSCRIPTS OF THE SEGMENT OF THE TABLOID TV SHOW A CURRENT AFFAIR DEALING WITH THE MURDERS YESTERDAY A RETIRED POLICE OFFICER WAS ARRESTED AND CHARGED WITH VIOLATING THE BAN BY MAILING 200 PHOTOCOPIES OF THE WASHINGTON POST STORY A WEEK AFTER HE HAD ATTEMPTED TO MAIL OUT COPIES OF A BRITISH NEWSPAPER'S ARTICLE ON THE SUBJECT COPIES OF NEWSWEEK'S REVIEW OF THE CASE PUBLISHED THIS WEEK ARE ALSO CROPPING UP IN CANADA EVEN THOUGH THE MAGAZINE REPLACED IT IN COPIES SOLD HERE WITH AN ITEM ON THE DEAD SEA SCROLLS NO ONE HERE REMEMBERS EVER DOING ANYTHING LIKE THIS IN CANADA BEFORE SAID CAROL SULLIVAN A SPOKESWOMAN FOR THE MAGAZINE BUT THE REALITY IS IF WE SELL IN CANADA WE HAVE TO ABIDE BY CANADIAN LAWS AT LEAST ONE US MEDIA OUTLET HOWEVER WAS SEEKING TO CHALLENGE THE BAN THE TORONTO STAR REPORTED THAT A BUFFALO DISK JOCKEY STATIONED HIMSELF ON THE US SIDE OF THE PEACE BRIDGE BORDER CROSSING AND USING A LOUDSPEAKER BROADCAST DETAILS OF THE WASHINGTON POST STORY AT THE TOP OF HIS LUNGS TO CANADIANS ON THE OTHER SIDE 9312030114 931203 KROCH'S & BRENTANO'S AGREES TO BE SOLD TO BUSINESSHIP ACQUISITION MARKS ENTRANCE OF CHAIN'S NEW OWNER INTO RETAIL BOOKSELLING BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO KROCH'S & BRENTANO'S INC THE VENERABLE BUT FISCALLY STRAPPED BOOKSTORE CHAIN AGREED TO BE ACQUIRED BY BUSINESSHIP INTERNATIONAL INC OF CORAL GABLES FLA TERMS OF THE TRANSACTION WHICH IS EXPECTED TO CLOSE AT YEAR END WEREN'T DISCLOSED BUT THERE APPEARS TO BE CHANGE IN STORE FOR THE 86YEAROLD CHAIN WHICH AGREED TO BE ACQUIRED BY A COMPANY WITH NO BOOKRETAILING EXPERIENCE BATTERED BY COMPETITION FROM THE INCREASING NUMBER OF BOOK SUPERSTORES IN THE REGION CHICAGO'S WIDESTKNOWN BOOKSELLER SWITCHED THIS YEAR TO A DISCOUNT FORMAT FROM ITS FULLSERVICE STANCE AND LATER CLOSED MOST OF ITS SUBURBAN OUTLETS REDUCING THE NUMBER OF ITS STORES TO NINE FROM A PEAK OF 19 AS ITS FINANCIAL CONDITION WORSENED CHAIRMAN CARL A KROCH ADVANCED 71 MILLION TO PAY OFF TRADE CREDITORS AT A DISCOUNT AND IN THE PROCESS ACQUIRED THE 80 STAKE IN THE COMPANY THAT HAD BEEN HELD BY AN EMPLOYEE STOCKOWNERSHIP PLAN MR KROCH EMERGED AS THE SOLE OWNER OF KROCH'S & BRETANO'S HE PROMISED TO MAKE ANNOUNCEMENTS EARLY NEXT YEAR REGARDING PLANS FOR EXPANSION AND DEVELOPMENT AT KROCH'S & BRENTANO'S MR ASHEMIMRY IS THE FOUNDER OF BUSINESSKID WHICH SELLS PRODUCTS DESIGNED TO ENCOURAGE ENTREPRENEURSHIP IN YOUNGSTERS AND IS PART OF BUSINESSHIP'S START LEARNING INC UNIT ANOTHER OF THE COMPANY'S HOLDINGS IS ISLAMIC EDUCATIONAL GIFTWARE BUSINESS TAREEG ALNOOR JOSEPH VINCENT EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF BUSINESSHIP STRESSED THAT THE HOLDING COMPANY WILL LEAVE SELECTION OF THE BOOKSTORE CHAIN'S PRODUCT TO THE MANAGEMENT OF KROCH'S & BRENTANO'S WHICH IS BEING RETAINED AND WILL CONTROL DAYTODAY OPERATIONS HE DECLINED TO ELABORATE FURTHER ON THE HOLDING COMPANY'S PLANS FOR THE BOOKSTORE CHAIN BEYOND SAYING THAT BUSINESSHIP IS MERGING ITS STRATEGIC VISION WITH KROCH'S & BRENTANO'S MANAGEMENT'S VISION AND WILL UNDERWRITE THE FINANCIAL SIDE OF IT 9312030113 931203 REVIEW & OUTLOOK EDITORIAL ASIDES NEW COMBINATION REMEMBER HOW INTEGRAL WAS THE LOCKER IN YOUR HIGHSCHOOL DAYS AT A GROWING NUMBER OF SOUTHERN CALIFORNIA CAMPUSES THOSE CLANGING DOORS ARE FALLING QUIET FACED WITH RAMPANT VANDALISM AND OTHER HEADACHES CENTERED ON THE COMPARTMENTS ADMINISTRATORS ARE CHOOSING TO RIP THEM OUT AND LET STUDENTS HAUL AROUND ALL THEIR BOOKS AND OTHER BELONGINGS IN THEIR BACKPACKS WAIT'LL THE BACKINJURY LAWYERS GET WORD TODAY OR YEARS FROM NOW 9312030112 931203 BUSINESS BRIEF ADIA SA GROUP LOSS IN '93 EXPECTED TO BE ABOUT 746 MILLION SWISS TEMPORARYEMPLOYMENT SERVICES GROUP ADIA SA EXPECTS ITS FULLYEAR 1993 GROUP NET LOSS TO APPROXIMATE THE 112MILLIONFRANC 746 MILLION LOSS IT ALREADY REPORTED FOR THE FIRST NINE MONTHS OF THE YEAR ADIA HAD A 1992 FULLYEAR NET LOSS OF 219 MILLION FRANCS FOLLOWING A 1991 PROFIT OF 25 MILLION FRANCS ADIA ALSO SAID THAT AFTER A CAPITAL OPERATION THE COMPANY'S DEBT SHOULD DECLINE TO 5924 MILLION FRANCS FROM 7854 MILLION FRANCS AT THE END OF LAST SEPTEMBER AT THE END OF 1991 DEBT OUTSTANDING WAS 15 BILLION FRANCS ADIA SAID IT HAD AN OPERATING PROFIT IN THE FIRST NINE MONTHS OF THE YEAR OF 334 MILLION FRANCS COMPARED WITH A LOSS OF 83 MILLION FRANCS IN THE SAME PERIOD IN 1992 9312030111 931203 SMALL STOCK FOCUS TECHNOLOGY TELECOMMUNICATION STOCKS REVERSE WEAKNESS AND LEAD INDEXES UP BY CAITLIN MOLLISON AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN AN ABOUTFACE FROM EARLY WEAKNESS SMALLCOMPANY STOCKS WERE TUGGED HIGHER NEAR THE CLOSE ALTHOUGH LOWER BOND PRICES DAMPED ENTHUSIASTIC BUYING ACCORDING TO ROBERT ANTOLINI HEAD OF OVERTHECOUNTER TRADING AT DONALDSON LUFKIN & JENRETTE LATE BUYING OF TECHNOLOGY AND TELECOMMUNICATION STOCKS HELPED THE MAJOR INDEXES CHALK UP GAINS SMALLER STOCKS SUCH AS AW COMPUTER SYSTEMS MOUNT LAUREL NJ CLIMBED 5/8 TO 3 7/8 STARSIGHT TELECAST FREMONT CALIF JUMPED 2 1/8 TO 18 1/4 AND SHARED TECHNOLOGIES WETHERSFIELD CONN ROSE 3/8 TO 4 1/4 THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES ROSE 030 TO 25291 ON NASDAQ THE COMPOSITE INDEX ROARED BACK FROM A TWOPOINT DEFICIT YESTERDAY MORNING TO GAIN 292 POINTS OR 038 AND END AT 76673 BUT ADVANCING ISSUES LAGGED BEHIND DECLINERS 1470 TO 1493 ON NASDAQ NATIONAL MARKET VOLUME OF 250990000 SHARES DOWN FROM 277920000 SHARES WEDNESDAY TOTAL VOLUME FELL TO 299133000 SHARES FROM 323880000 ALTHOUGH MANY TECH STOCKS CLIMBED SEVERAL SANK ON DISAPPOINTING COMPANY NEWS FOR EXAMPLE MEDIMMUNE GAITHERSBURG MD SKIDDED 7 OR 30 TO 16 A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL SAID THE COMPANY NEEDS TO DO FURTHER CLINICAL TRIALS ON ITS RESPIRATORY VIRUS DRUG RESPIGAM LIKELY PAVING THE WAY FOR THE FDA TO FOLLOW THE COMMITTEE'S RECOMMENDATION AND THEREBY DELAYING THE PRODUCT'S LAUNCH BUT MERRYGOROUND ENTERPRISES ADDED 1 1/8 TO 6 1/2 EVEN THOUGH THE APPAREL CONCERN REPORTED A THIRDQUARTER LOSS OF 385 MILLION AND A 23 DROP IN NOVEMBER SAMESTORE SALES ANALYSTS SAID INVESTORS WERE RESPONDING BULLISHLY TO NEWS THAT THE COMPANY'S FOUNDER AND CHAIRMAN LENNY WEINGLASS HAS TAKEN OVER MERCHANDISING STRATEGY AT THE FIRM THE ANNOUNCEMENT THAT LENNY WEINGLASS IS GOING TO BE TAKING OVER MERCHANDISING COMPLETELY AND STUART LUCAS IS GOING TO BE OUT OF THE PICTURE IS GOOD NEWS SAID ANITA WAGER A RETAILING ANALYST AT PAINEWEBBER MR LUCAS RESIGNED ON WEDNESDAY AS PRESIDENT OF MERCHANDISING GENZYME DROPPED 2 TO 29 ON HEAVY VOLUME THE CAMBRIDGE MASS DRUG MAKER SAID THE COST OF PRODUCING CEREDASE A DRUG USED IN THE TREATMENT OF GAUCHER DISEASE MAY INCREASE BY 22 MILLION ANNUALLY THE COMPANY SAID IN A NEWS RELEASE THAT IT IS UNCERTAIN AT THIS TIME WHETHER AND TO WHAT EXTENT ANY OF THESE COSTS WILL BE BORNE BY GENZYME PASTEUR MERIEUX SUPPLIER OF THE SOURCE MATERIAL IN CEREDASE OR THE PATIENT BROOKTREE SAN DIEGO DROPPED 2 1/4 TO 10 1/2 THE INTEGRATEDCIRCUITS DESIGNER SAID IT EXPECTS OPERATING RESULTS FOR ITS FISCAL FIRST QUARTER TO FALL BELOW CURRENT ANALYSTS' ESTIMATES OF 21 CENTS A SHARE BROOKTREE IS LOOKING FOR NET INCOME OF EIGHT CENTS TO 12 CENTS A SHARE COMPARED WITH 17 CENTS IN THE YEAREARLIER QUARTER RAINBOW TECHNOLOGIES IRVINE CALIF SAGGED 3 1/2 TO 17 1/4 AFTER THE COMPANY SAID IT WON'T MEET ANALYSTS' FOURTHQUARTER ESTIMATES OF 30 CENTS TO 38 CENTS A SHARE THE DEVELOPER OF SOFTWARE PROTECTION PRODUCTS WHICH EARNED 25 CENTS A SHARE A YEAR EARLIER BLAMED WEAKER ECONOMIES IN EUROPE AND JAPAN FOR THE SHORTFALL ONE OF THE DAY'S BIGGEST NASDAQ DECLINERS WAS SOMANETICS A TROY MICH DEVELOPER OF MEDICAL DIAGNOSTIC EQUIPMENT WHICH FELL 1 3/8 OR 537 TO 1 3/16 THE COMPANY SAID IT RECEIVED NOTICE FROM THE FDA THAT IT WAS RESCINDING PREMARKET NOTIFICATION TO MARKET AND PROMOTE ITS INVOS 3100 CEREBRAL OXIMETER A MONITOR OF OXYGEN SATURATION OF BLOOD IN THE BRAIN THE COMPANY DIDN'T SAY WHAT LED TO THE FDA'S DECISION MERGER NEWS LOPPED 1 1/8 OFF SUMMIT HEALTH LTD'S STOCK PRICE WHICH FINISHED AT 7 7/8 THE BURBANK CALIF OPERATOR OF HEALTHCARE FACILITIES SAID IT HAS SIGNED AN AGREEMENT UNDER WHICH IT WILL BE ACQUIRED BY ORNDA HEALTHCORP FOR CASH AND STOCK ORNDA BASED IN NASHVILLE TENN ADDED 1 TO 13 3/4 NEW ISSUE HUMAN GENOME SCIENCES ROCKETED TO 20 1/4 ON ITS FIRST TRADING DAY UP FROM ITS 12 DEBUT PRICE LATE WEDNESDAY THE GENESEQUENCING COMPANY BASED IN ROCKVILLE MD SAID IT WILL USE PROCEEDS FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES KENDALL SQUARE RESEARCH SKIDDED 1 OR 145 TO 5 7/8 AMID FURTHER FALLOUT FROM RECENT DISCLOSURES ABOUT OVERSTATED REVENUES THE STOCK OF THE WALTHAM MASS SUPERCOMPUTER MAKER HAD BEEN AS HIGH AS 2425 IN LATE OCTOBER ON WEDNESDAY THE COMPANY ANNOUNCED A SHAKEUP OF TOP MANAGEMENT VOLVO'S AMERICAN DEPOSITARY RECEIPTS CLIMBED 2 7/8 TO 55 3/8 THE SWEDISH CAR MAKER SAID IT WILL PUT ASIDE ITS PROPOSED MERGER WITH RENAULT AND CANCELED A SHAREHOLDERS' MEETING PLANNED FOR NEXT WEEK TO VOTE ON THE PROPOSAL VOLVO'S CHAIRMAN PEHR GYLLENHAMMAR AND THE REST OF THE BOARD RESIGNED ANOTHER NOTABLE GAINER WAS CROWN ANDERSEN A PEACHTREE CITY GA AIR POLLUTION CONTROL FIRM THE COMPANY'S SHARES SURGED 1 5/8 TO 6 1/4 AFTER THE COMPANY ANNOUNCED A BUYBACK OF UP TO 300000 OF ITS COMMON SHARES IN THE OPEN MARKET IN BIG BOARD ACTION REXNORD A MILWAUKEE POWER TRANSMISSION COMPONENTS JUMPED 3 1/2 TO 21 3/4 THE CONCERN SAID IT ENTERED INTO A DEFINITIVE MERGER AGREEMENT WITH BTR PLC'S BTR DUNLOP HOLDINGS INC SUBSIDIARY UNDER THE AGREEMENT BTR DUNLOP WILL ACQUIRE ALL OUTSTANDING REXNORD COMMON STOCK FOR 2250 A SHARE NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 85 WHILE 37 ISSUES HIT NEW LOWS 9312030110 931203 MARKETING & MEDIA ADVERTISING MARTIN SORRELL STEPS UP THE PACE IN ACQUIRING SELLING WPP STOCK BY KEVIN GOLDMAN AT TIMES MARTIN SORRELL MOVES SLOWLY AND METHODICALLY IT TOOK NEARLY THREE YEARS FOR MR SORRELL WPP GROUP'S CHIEF EXECUTIVE TO SELL THE AD AGENCY SCALI MCCABE SLOVES BUT IT TOOK HIM LESS THAN 14 MONTHS TO ACQUIRE AND SELL A LARGE CHUNK OF WPP STOCK MR SORRELL IN MIDNOVEMBER SOLD 800000 SHARES OF HIS WPP STOCK OR 38 OF HIS TOTAL 21 MILLION SHARES ALTHOUGH HIS SALE REPRESENTS A FRACTION OF WPP'S 400 MILLION SHARES OUTSTANDING THE EXECUTIVE'S MOVE IS NOTEWORTHY IT'S HARD TO GET OUTSIDERS TO BELIEVE IN THE STOCK WHEN YOU'RE IN A SENIOR POSITION IN THE COMPANY AND SELLING IT SAYS ONE ANALYST WHO FOLLOWS WPP THE ANALYST DIDN'T WANT TO BE IDENTIFIED BECAUSE OF HIS ONGOING RELATIONSHIP WITH WPP THE HOLDING COMPANY THAT OWNS J WALTER THOMPSON AND OGILVY & MATHER AMONG OTHER PROPERTIES WPP SOLD MOST OF ITS HOLDINGS IN SCALI MCCABE LAST MONTH TO INTERPUBLIC GROUP'S LOWE GROUP FOR 555 MILLION WHILE MR SORRELL DECLINES COMMENT ON ANY ASPECT OF THE STOCK SALE ONE PERSON FAMILIAR WITH THE TRANSACTION SAYS THE CHIEF EXECUTIVE SOLD THE STOCK FOR PURELY PERSONAL REASONS MR SORRELL HAD BOUGHT LARGE BLOCKS OF THE STOCK BEGINNING IN SEPTEMBER 1992 WHEN HE PURCHASED 100000 SHARES HE MADE ANOTHER PURCHASE OF 100000 SHARES THE FOLLOWING MONTH AND STILL ANOTHER 100000 SHARES LAST DECEMBER HIS FINAL PURCHASE CAME IN MARCH WHEN HE BOUGHT 500000 SHARES ANALYSTS SAY THE STOCK SALE BY MR SORRELL LAST MONTH DOESN'T SIGNAL THAT THE EXECUTIVE INTENDS TO BAIL OUT OF THE ADVERTISING BUSINESS WHICH REMAINS SLUGGLISH UNLIKE OTHER MANAGERS MARTIN STAYED AROUND AND TOOK THE HEAT WHEN WPP WAS HAVING FINANCIAL DIFFICULTIES SAYS JAMES DOUGHERTY OF DEAN WITTER ONE OF THE FEW ANALYSTS WILLING TO SPEAK FOR ATTRIBUTION MR SORRELL STAYED AT WPP AND NEGOTIATED WHATEVER WAS NEEDED FINANCIALLY MR DOUGHERTY ADDS HE COULD HAVE CUT HIS LOSSES AND RUN BUT HE HASN'T SOME ANALYSTS FEEL WPP APPEARS TO BE RECOVERING FROM FINANCIAL PROBLEMS THAT PLAGUED THE ONCEROBUST COMPANY FOR THE PAST SEVERAL YEARS IN AUGUST WPP REPORTED SIXMONTH PROFIT AFTER TAX OF 114 MILLION US168 MILLION IT HAD A LOSS OF 5 MILLION A YEAR EARLIER WPP GROUP WHOSE SHARES TRADE IN THE US AS AMERICAN DEPOSITARY RECEIPTS CLOSED YESTERDAY AT 268 TWO BRITISH SHARES EQUAL ONE ADR THE BRITISH COMPANIES REPORT SEMIANNUALLY NOT QUARTERLY MR SORRELL IS EXPECTED TO MAKE AN APPEARANCE TUESDAY AFTERNOON AT THE ANNUAL PAINEWEBBER MEDIA CONFERENCE IT IS UNCLEAR WHAT HE WILL SAY ALTHOUGH OPTIMISTIC NEWS IS LIKELY MR DOUGHERTY OF DEAN WITTER FORECASTS A 1993 PROFIT OF 642 MILLION BEFORE TAXES AND EXCEPTIONAL ITEMS COMPARED WITH 537 MILLION IN 1992 MR DOUGHERTY SAYS THAT THE 20 INCREASE IS GOOD ESPECIALLY SINCE WPP IS COMING OUT OF BEING A BASKET CASE A PARTICULARLY FITTING COMMENT BECAUSE WPP BEGAN ITS CORPORATE LIFE MAKING WIRE SHOPPING BASKETS BUT THE PICTURE IS SOMEWHAT BLEAK SAYS MR DOUGHERTY WHEN ONE EXAMINES THE FULLY DILUTED EARNINGS PER SHARE TRANSLATED INTO ADRS 12 CENTS FOR 1993 THAT ISN'T GOOD ENOUGH TO BUY THE STOCK HE SAYS ECHOING THE SENTIMENT OF SOME OTHER ANALYSTS DEAN WITTER RATES WPP STOCK AS SWAP WHICH MR DOUGHERTY SAYS IS THE FIRM'S JARGON FOR SELL AND PAINEWEBBER LISTS THE STOCK AS NEUTRAL BOTH DEAN WITTER AND PAINEWEBBER GIVE HIGHER MARKS TO J WALTER THOMPSON THAN TO OGILVY & MATHER THE ANALYSTS REMAIN PUZZLED AND SOMEWHAT UNSATISFIED BY THE EXPLANATION THAT MR SORRELL WOULD SELL THE STOCK FOR PURELY PERSONAL REASONS AND THESE ANALYSTS NOTE MR SORRELL DIDN'T MAKE WHAT WOULD AMOUNT TO A FINANCIAL KILLING ON THE TRANSACTION ONE PERSON CLOSE TO THE SITUATION SAYS THAT MR SORRELL'S TRANSACTIONS WOULD CARRY ADDED SIGNIFICANCE IF HE WERE UNLOADING HIS ENTIRE STAKE AND IF HIS SHARES REPRESENTED A LARGE PERCENTAGE OF THE TOTAL OUTSTANDING IT IS UNCLEAR WHAT EFFECT MR SORRELL'S SALE WILL HAVE ON OTHER WPP INVESTORS AND THE 28 BANKS THAT CONTROL 35 OF WPP AS FOR MR SORRELL HE DECLINES TO COMMENT ON HIS FUTURE STOCK PLANS KRUPP/TAYLOR AS EXPECTED FOOTE CONE & BELDING COMMUNICATIONS CHICAGO SAID IT HAS SIGNED A LETTER OF INTENT TO SELL ITS TROUBLED KRUPP/TAYLOR DIRECTMAIL PRODUCTION OPERATION THE PURCHASER IS DIMAC CORP OF BRIDGETON MO WHICH OWNS THE DIMAC DIRECT MARKETING FIRM RANKED NO 8 AMONG DIRECTMARKETING AGENCIES BY ADVERTISING AGE TERMS OF THE TRANSACTION WEREN'T DISCLOSED CELLULAR ONE ACCOUNT MCCAW CELLULAR COMMUNICATIONS CO SELECTED COCONUT GROVE FLA AGENCY CRISPIN & PORTER TO HANDLE AN ESTIMATED 5 MILLION ADVERTISING EFFORT IN FLORIDA FOR THE CELLULAR ONE PHONE SERVICE NAME CHANGE MARGEOTES FERTITTA & WEISS NEW YORK SAID IT IS ADDING THE NAME OF ITS STRATEGIC PLANNING DIRECTOR PAUL DONAHER TO THE DOOR THE AGENCY IS NOW CALLED MARGEOTES FERTITTA DONAHER & WEISS CHIAT CHIAT/DAY VENICE CALIF WON THE CREATIVE ASSIGNMENT FOR A TV AND RADIO CAMPAIGN FOR SUNKIST CALIFORNIA PISTACHIOS MARKETED BY CALPURE GROWERS THE CAMPAIGN IS EXPECTED TO START IN JANUARY WESTERN INTERNATIONAL MEDIA CONTINUES TO HANDLE MEDIA PLANNING AND BUYING FOOD NETWORK GEORGE L BABICK WAS APPOINTED SENIOR VICE PRESIDENT OF THE TELEVISION FOOD NETWORK A NEW CABLE SERVICE DEVOTED TO FOOD NEWS AND FEATURES HE HAD BEEN VICE PRESIDENT CORPORATE DEVELOPMENT TRIBUNE BROADCASTING A UNIT OF TRIBUNE CO 9312030109 931203 TAKEOVER DOGFIGHT PROMPTS BITE BY IRS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MICHAEL STEINHARDT IS LIKELY TO EMERGE IN CONTROL OF INTEGRATED RESOURCES INC THANKS TO AN AGGRESSIVE ATTACK THAT FORCED OUT HIS CHIEF RIVAL THE PRITZKER FAMILY OF CHICAGO THE FORMER TAXSHELTER SYNDICATION COMPANY HAS BEEN MIRED IN CHAPTER 11 BANKRUPTCY PROCEEDINGS HERE FOR FOUR YEARS AS CREDITORS ALLIED WITH OUTSIDE INVESTORS HAVE STRUGGLED TO WREST THE COMPANY AWAY FROM ITS MANAGEMENT MR STEINHARDT WHO RUNS STEINHARDT MANAGEMENT CO A NEW YORK HEDGE FUND WITH MORE THAN 3 BILLION IN ASSETS GAINED THE UPPER HAND THROUGH AN EXTRAORDINARY MANEUVER BY HIS ALLY EDWARD WEISFELNER THE LAWYER REPRESENTING SUBORDINATED CREDITORS ON SEPT 29 MR WEISFELNER SENT COPIES TO THE INTERNAL REVENUE SERVICE OF A PLAN BEING JOINTLY PROPOSED BY THE PRITZKERS AND THE SENIOR CREDITORS DRAWING THE IRS'S ATTENTION TO THE PLAN'S UNUSUAL TAX STRUCTURE SICKING THE IRS ON AN OPPONENT IS EXTREMELY OUT OF PLACE IN BANKRUPTCYCOURT PROCEEDINGS BUT IT PROVED EFFECTIVE HEATED DISCUSSIONS WITH THE IRS CULMINATED ON NOV 18 WHEN ATTORNEYS FROM THREE LAW FIRMS INVOLVED IN DRAFTING THE PRITZKER PLAN FLEW TO WASHINGTON TO MEET WITH SENIOR OFFICIALS IN THE IRS'S CORPORATE BRANCH THE FOLLOWING DAY THE PRITZKERS WITHDREW THEIR PROPOSAL FOR TAKING CONTROL OF INTEGRATED RESOURCES LEAVING 53YEAROLD MR STEINHARDT TO SLUG IT OUT WITH THE COMPANY'S MANAGEMENT THIS IS THE FIRST TIME THE IRS HAS EVER STEPPED IN TO BLOCK A BANKRUPTCYEXIT PLAN SAYS LOUIS TUCHMAN A TAX ATTORNEY AT KAYE SCHOLER FIERMAN HAYS & HANDLER WHO REPRESENTS INTEGRATED RESOURCES NOW THE IRS IS TURNING ITS ATTENTION TO THE COMPANY'S PLAN WHICH BEARS A STRONG RESEMBLANCE TO THE NOWDEFUNCT PRITZKER PROPOSAL THIS MEANS THE ARCANE TAX ISSUES THAT HAD LONG SIMMERED DURING THE BANKRUPTCY PROCEEDINGS ARE BUBBLING TO THE TOP AT ISSUE IS HOW TO USE THE COMPANY'S ENORMOUS OPERATING LOSS TO SHELTER ITS MOST VALUABLE ASSET FROM TAXES IN ESSENCE THE THREE BIDDERS HAVE BEEN COMPETING TO COME UP WITH THE BEST TAXSHELTERING PLAN FOR THE EXTAXSHELTERER INTEGRATED RESOURCES ONCE A LEADING SYNDICATOR OF TAXSHELTER LIMITED PARTNERSHIPS HAS ITSELF DEVELOPED WAYS TO GET AROUND PAYING TAXES THAT'S BECAUSE THE COMPANY STRUCTURED THE FEES DUE FROM EACH PARTNERSHIP INTO A COMPLEX STREAM OF PAYMENTS DUE OVER THE LIFE OF EACH PARTNERSHIP CALLED CONTRACT RIGHTS FOR THE FIRST 15 OR SO YEARS THE PARTNERSHIPS WERE TO MAKE NO PAYMENTS TO INTEGRATED BUT ACCRUE THEIR OBLIGATION INTEGRATED NOT ONLY PAID NO TAXES WHILE RECOGNIZING THAT INCOME BUT IT CARRIES CONTRACT RIGHTS AT ZERO ON ITS TAX BOOKS THAT POSES A HUGE TAX PROBLEM TODAY HOWEVER BECAUSE THE CONTRACT RIGHTS ARE FAR FROM WORTHLESS IF THE CONTRACT RIGHTS CAN BE CONVERTED INTO SECURITIES AS EACH PLAN CONTEMPLATES THEY COULD BE WORTH AS MUCH AS 600 MILLION ACCORDING TO HERB STILES HEAD OF THE SUBORDINATED BONDHOLDERS COMMITTEE ON THEIR FACE THE STEINHARDT AND COMPANY PLANS LOOK SIMILAR EACH OFFERS SENIOR CREDITORS ROUGHLY THE SAME CASH RECOVERY OF 55 CENTS ON THE DOLLAR PLUS A SHARE OF THE VALUE OF THE CONTRACT RIGHTS THE SUBORDINATED BONDHOLDERS FARE BEST WITH MR STEINHARDT WHO OFFERED HIS ALLIES ABOUT FIVE CENTS ON EVERY DOLLAR OF CLAIMS THE TRICK IS HOW TO SHELTER THE GAIN FROM REALIZING THE CONTRACT RIGHTS' VALUE BY PRESERVING INTEGRATED'S 640 MILLION NET OPERATING LOSS TAX RULES LIMIT THE USEFULNESS OF OPERATING LOSSES IF CONTROL OF THE COMPANY CHANGES AS OFTEN HAPPENS WHEN A COMPANY'S FORMER CREDITORS RECEIVE STOCK IN A REORGANIZATION USUALLY ANY REMAINING LOSSES ARE USED TO SET OFF SOCALLED CANCELLATIONOFINDEBTEDNESS INCOME DEBTS THAT ARE DISCHARGED WHEN A COMPANY EMERGES FROM BANKRUPTCY PROTECTION ARE VIEWED AS TAXABLE INCOME TO THE COMPANY THE COMPANY'S TAX WHIZZES DEVISED AN INGENIOUS GAMBIT THAT THE PRITZKERS IMITATED INSTEAD OF DISTRIBUTING STOCK THE COMPANY WOULD DISTRIBUTE CERTIFICATES OF BENEFICIAL INTEREST TO CREDITORS THE CREDITORS WOULD SHARE THE CONTRACT RIGHTS' VALUE THROUGH THESE CERTIFICATES WHEN THE COMPANY LIQUIDATED ITSELF INSTEAD OF REORGANIZING THIS PLAN WOULD LEAVE INTEGRATED'S ORIGINAL STOCKHOLDERS IN NOMINAL CONTROL OF THE COMPANY THE COMPANY ARGUES THAT ITS DEBTS AREN'T BEING DISCHARGED SINCE CREDITORS HAVE A CHANCE AT RECOVERIES UNTIL THE COMPANY IS LIQUIDATED YEARS FROM NOW MOREOVER THE COMPANY SAYS ITS PLAN DIFFERS FROM THE PRITZKERS' BECAUSE THE PRITZKERS WANTED TO PUT IN NEW MONEY TO CONTROL A 25 STAKE THE IRS OUTLINED ITS OBJECTION TO THE SIMILAR PRITZKER PLAN IN A NOV 26 FILING WITH THE BANKRUPTCY COURT IN THE SOUTHERN DISTRICT OF NEW YORK THE IRS DISPUTED THE CONTENTION THAT NO CHANGE IN CONTROL HAD OCCURRED IN PART BECAUSE BANKRUPTCY RULES DICTATE THAT UNREIMBURSED CREDITORS RECEIVE THE EQUITY IN A REORGANIZED COMPANY THE IRS FURTHER CONTENDED THAT DEBTS WERE BEING DISCHARGED WHEN CREDITORS SWAPPED THEIR CLAIMS FOR THE CERTIFICATES THE IRS OBJECTED AS WELL TO THE INTENDED LIQUIDATION OF THE COMPANY WHOSE PRINCIPAL PURPOSE IT NOTED COULD BE THE AVOIDANCE OF TAXES MR STEINHARDT PROPOSES TO MODIFY THE CONTRACT RIGHTS BEFORE HIS REORGANIZATION IS COMPLETED AND SELL THEM TO AN OFFSHORE COMPANY HE AND CREDITORS WOULD OWN UNDER TAX RULES THE OPERATING LOSS COULD BE USED TO OFFSET THE GAIN FROM THE SALE OF THE RIGHTS THE PRITZKERS MAY YET REEMERGE THOUGH RELATIONS WITH THEIR ALLIES THE SENIOR CREDITORS' COMMITTEE HAVE DETERIORATED AS A RESULT OF ANOTHER DIVISIVE TACTIC ON MR STEINHARDT'S PART IN EARLY NOVEMBER JUST AS THE IRS BEGAN INTERVIEWING PARTICIPANTS IN THE CONTEST MR STEINHARDT IMPROVED HIS BID BY REDUCING HIS PROPOSED STAKE OF THE REORGANIZED INTEGRATED TO 12 THE PRITZKERS WHO WANTED TO KEEP 25 OF THE COMPANY BALKED AT CREDITORS' DEMANDS THAT THEY LOWER THE PERCENTAGE TO MATCH MR STEINHARDT SINCE WITHDRAWING AS PLAN PROPONENTS THE PRITZKERS OFFERED THE COMPANY 260 MILLION FOR THE CONTRACT RIGHTS THE SENIOR CREDITORS COMMITTEE DETERMINED TO OUST MANAGEMENT HAS BEEN NEGOTIATING WITH REPRESENTATIVES FROM MR STEINHARDT'S FIRM BANKRUPTCY COURT JUDGE CORNELIUS BLACKSHEAR IS LIKELY TO APPROVE DISCLOSURE STATEMENTS FOR A CREDITOR VOTE SOON CREDITORS COULD VOTE AS EARLY AS YEAR END ON A PLAN OF REORGANIZATION IT WOULD ALLOW THE FORMER TAX SHELTER SYNDICATOR TO EMERGE FROM BANKRUPTCY COURT AS A COMPANY COLLECTING PAYMENTS FROM PREVIOUSLY CREATED PARTNERSHIPS 9312030108 931203 COMMODITIES GRAIN PRICES JUMP ON SPECULATION THAT RUSSIA MIGHT SEEK 500 MILLION IN NEW CREDIT FROM US BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US GRAIN PRICES JUMPED AMID GROWING SPECULATION THAT RUSSIAN OFFICIALS MIGHT SEEK ROUGHLY 500 MILLION IN GRAINBUYING CREDIT FROM THE AGRICULTURE DEPARTMENT THE RALLY WAS ALSO SUPPORTED BY US WHEAT SALES TO PAKISTAN AND EGYPT AS WELL AS REPORTS OF WEATHER PROBLEMS WITH THE WHEAT CROP IN THE UKRAINE IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE CORN CONTRACT FOR MARCH DELIVERY ROSE 525 CENTS A BUSHEL TO SETTLE AT 291 THE MARCH WHEAT CONTRACT ROSE 325 CENTS A BUSHEL TO SETTLE AT 3555 A BUSHEL AND THE MARCH SOYBEAN CONTRACT JUMPED 975 CENTS A BUSHEL TO SETTLE AT 6875 A BUSHEL YESTERDAY'S RALLY IS A REFLECTION OF HOW JITTERY TRADERS HAVE BECOME IN THE WAKE OF THE FLOODRELATED MIDWEST CROP DISASTER ERRATIC GRAIN PRICES ARE EXPECTED THIS WINTER AND SPRING AS DOMESTIC STOCKPILES SHRINK THE GOVERNMENT IS FORECASTING A SEPTEMBER 1994 US CORN SUPPLY OF 881 MILLION BUSHELS LESS THAN HALF THE LEVEL OF SEPTEMBER 1993 AND THE LOWEST LEVEL SINCE 1977 ONE REASON GRAIN PRICES ROSE YESTERDAY IS THAT SOME GRAIN TRADERS EXPECT THE AGRICULTURE DEPARTMENT TO SHRINK ITS STOCKPILE FORECAST NEXT WEEK TO REFLECT THE POTENTIAL FOR MORE EXPORTS TO MEXICO IN WAKE OF THE APPROVED NORTH AMERICAN FREE TRADE AGREEMENT THE RALLY WAS TRIGGERED IN PART BY SPECULATION THAT A RUSSIAN DELEGATION WILL RAISE THE ISSUE OF GRAINBUYING CREDIT DURING A VISIT TO WASHINGTON LATER THIS MONTH RUSSIA HAS BEEN SUSPENDED FROM THE AGRICULTURE DEPARTMENT'S GRAINCREDIT PROGRAM FOR A YEAR BECAUSE OF LOAN DEFAULTS TRADERS FIGURE RUSSIA THIS MONTH WILL MAKE GOOD ON ITS GRAIN DEBTS TO BECOME ELIGIBLE FOR MORE US FOOD AID MOSCOW PAID 148 MILLION TO THE US GOVERNMENT IN RECENT DAYS AND IS SCHEDULED TO MAKE A SIMILAR PAYMENT BY DEC 31 DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO SAID TRADERS FIGURE RUSSIA WILL LIKELY SEEK BETWEEN 400 MILLION AND 600 MILLION IN NEW CREDIT GUARANTEES DESPITE RUSSIA'S RECENT HISTORY OF TARDY PAYMENTS TRADERS GENERALLY EXPECT THE US TO EXTEND NEW CREDIT TO MOSCOW AS A SHOW OF SUPPORT FOR RUSSIAN PRESIDENT BORIS YELTSIN RUSSIA RECENTLY HAS BOUGHT SOME FOREIGN GRAIN PRODUCTS WITH CASH AND WANTS TO REDUCE ITS DEPENDENCE ON FOREIGNFOOD CREDIT BUT ITS ECONOMY IS SO WEAK THAT IT WILL LIKELY DEPEND ON CREDIT AND FOOD AID FROM FOREIGN SUPPLIERS IN THE FORESEEABLE FUTURE TRADERS SAID EARLIER THIS WEEK THE AGRICULTURE DEPARTMENT PREDICTED THAT RUSSIA AND THE OTHER FORMER SOVIET STATES WILL BUY ABOUT 12 BILLION OF US FARM GOODS DURING THE FISCAL YEAR ENDING IN SEPTEMBER 1994 COMPARED WITH ROUGHLY 16 BILLION FOR FISCAL 1993 IN OTHER COMMODITY MARKETS PRECIOUS METALS GOLDFUTURES PRICES SETTLED LOWER AFTER RALLYING EARLIER IN THE TRADING SESSION AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY FELL 1 AN OUNCE TO 37560 AN OUNCE AFTER TRADING AS HIGH AS 37740 AT ONE POINT DURING THE SESSION IN A SCANTLY REPORTED NEWS DEVELOPMENT THE RUSSIAN GOVERNMENT SAID IT WOULD INCREASE ITS GOVERNMENT SPENDING BY 15 TRILLION RUBLES AND FINANCE 80 OF THE INCREASE BY SELLING GOLD RESERVES SAID BERNARD SAVAIKO GOLD ANALYST AT PAINEWEBBER INC AT THE CURRENT EXCHANGE RATE OF 126 RUBLES TO THE DOLLAR THIS WOULD TRANSLATE TO SALES OF ABOUT 25 MILLION OUNCES OF GOLD A QUANTITY OF SALES THAT COULD EXERT DOWNWARD PRESSURE ON PRICES MR SAVAIKO SAID COFFEE COFFEEFUTURES PRICES CONTINUED TO SAG ON TRADERS' SKEPTICISM ABOUT THE PROSPECTS OF AN EXPORTLIMITING AGREEMENT AMONG THE WORLD'S MAJOR COFFEE PRODUCERS AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MARCH DELIVERY WAS DOWN 235 CENTS TO 763 CENTS A POUND POLITICAL INSTABILITY IN BRAZIL AND COLOMBIA HAS RAISED CONCERN THAT THE TWO COUNTRIES MAY BE UNABLE TO FINANCE THE EXPORTLIMITING AGREEMENT SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IN ADDITION BRAZIL THE WORLD'S BIGGEST COFFEE PRODUCER HAS YET TO FINISH PURCHASES OF THE COFFEE IT NEEDS TO BUY TO ADHERE TO THE AGREEMENT FOR THE MONTH OF NOVEMBER DESPITE THE PRECIPITOUS DOWNWARD MOVEMENT OF COFFEEFUTURES PRICES YESTERDAY ANALYSTS NOTED THAT THE PRICE OF THE MARCH CONTRACT STILL HAS FAILED TO BREAK OUT OF THE RANGE OF 75 TO 81 CENTS IN WHICH IT HAS TRADED SINCE SEPTEMBER AT SOME POINT THE MARKET'S GOING TO MAKE UP ITS MIND WHICH WAY TO GO MR O'NEILL SAID 9312030107 931203 MARKETING & MEDIA CBS NETWORK FINISHES NO 1 IN NOVEMBER SWEEPS' NEW YORK CBS INC'S CBS NETWORK AS EXPECTED FINISHED FIRST IN THE NOVEMBER SWEEPS BROADCAST TELEVISION RATINGS PERIOD EDGING OUT ABC CBS DREW AN AVERAGE 13 OF THE NATION'S 942 MILLION TV HOUSEHOLDS DURING PRIMETIME A GAIN OF 2 COMPARED WITH A YEAR AGO ACCORDING TO AC NIELSEN CO FIGURES ABC A UNIT OF CAPITAL CITIES/ABC INC WAS SECOND WITH 127 OF HOUSEHOLDS DOWN 5 GENERAL ELECTRIC CO'S NBC WAS THIRD WITH 122 OF HOUSEHOLDS UP 3 NEWS CORP'S FOX NETWORK WHICH AIRS 15 HOURS WEEKLY OVER SEVEN NIGHTS COMPARED WITH THE OTHER NETWORKS' 22 HOURS AVERAGED 75 THAT WAS DOWN 9 FROM A YEAR AGO WHEN FOX HAD PROGRAMS ON ONLY FIVE NIGHTS WHILE THE SWEEPS NUMBERS GIVE THE NETWORKS BRAGGING RIGHTS THEY ARE MOST IMPORTANT FOR THE NETWORKS' AFFILIATE STATIONS WHICH USE THEM TO SET FUTURE AD RATES WITH LESS THAN ONE RATING POINT SEPARATING FIRSTPLACE CBS AND LASTPLACE NBC NBC ENTERTAINMENT'S PRESIDENT WARREN LITTLEFIELD SAID HIS NETWORK HAS GOTTEN BACK IN THE RACE WE'RE NO LONGER THE GUYS TO KICK SAND AT NBC FARED PARTICULARLY WELL WITH SOME KEY DEMOGRAPHICS FOR ADVERTISERS INCLUDING WOMEN 18 TO 49 YEARS OLD CBS IMPROVED IN THAT DEMOGRAPHIC AS WELL 9312030106 931203 PACTEL SHARES PRICED AT 23 TO RAISE 138 BILLION NEW YORK UNDERWRITERS PRICED THE INITIAL PUBLIC OFFERING OF WIRELESSCOMMUNICATION COMPANY PACTEL CORP AT 23 A SHARE WHICH WOULD RAISE 138 BILLION PACTEL A GROUP OF BUSINESSES TO BE SPUN OFF BY PACIFIC TELESIS GROUP HAD EXPECTED THE SHARES TO BE OFFERED AT 21 TO 23 EACH THE SIZE OF THE OFFERING WAS INCREASED TO 60 MILLION SHARES FROM THE PLANNED 50 MILLION SHARES LEHMAN BROTHERS AND SALOMON BROTHERS ARE JOINT MANAGERS OF THE OFFERING OF THE TOTAL 42 MILLION SHARES ARE BEING OFFERED IN THE US AND THE REST IN INTERNATIONAL MARKETS FOLLOWING AMERICAN TELEPHONE & TELEGRAPH CO'S PLAN TO ACQUIRE CELLULAR GIANT MCCAW CELLULAR COMMUNICATIONS INC SOME INVESTORS CONSIDER PACTEL PARTICULARLY APPEALING BECAUSE IT IS ONE OF THE FEW MAJOR COMPANIES IN THE MARKET WITH ONLY WIRELESS OPERATIONS THE BUSINESSES THAT MAKE UP PACTEL HAD OPERATING REVENUE OF 880 MILLION IN 1992 PACTEL IS TO BE SPUN OFF IN 1994 FOLLOWING THE INITIAL PUBLIC OFFERING PACIFIC TELESIS SAID THAT AFTER THE OFFERING IT WILL CONTINUE TO OWN AT LEAST 80 OF THE SHARES OF PACTEL BUT IT EXPECTS TO SUBSEQUENTLY DISTRIBUTE THOSE SHARES TO ITS 900000 SHAREHOLDERS IN THE SPINOFF WHICH WILL SEPARATE THE TWO COMPANIES PACIFIC TELESIS'S SHARES CLOSED AT 57625 UP 875 CENTS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9312030105 931203 BUSINESS BRIEF SCOTSMAN INDUSTRIES INC TWO ONEX CORP SUBSIDIARIES TO BE ACQUIRED BY COMPANY SCOTSMAN INDUSTRIES INC VERNON HILLS ILL SAID IT AGREED TO ACQUIRE TWO COMPANIES CONTROLLED BY CANADA'S ONEX CORP FOR 68 MILLION IN A COMBINATION OF CASH PREFERRED AND COMMON STOCK SCOTSMAN WHICH MAKES REFRIGERATION PRODUCTS FOR THE FOODSERVICE HOSPITALITY BEVERAGE AND HEALTHCARE INDUSTRIES SAID IT WILL BUY DELFIELD CO A MOUNT PLEASANT MICH MAKER OF REFRIGERATED FOODSERVICE EQUIPMENT AND WHITLENGE DRINK EQUIPMENT LTD A BIRMINGHAM UK MAKER OF DRINK DISPENSING EQUIPMENT DELFIELD AND WHITLENGE HAVE COMBINED ANNUAL REVENUE OF MORE THAN 100 MILLION THE ACQUISITION WILL INCREASE SCOTSMAN'S ANNUAL SALES TO MORE THAN 275 MILLION AND IS EXPECTED TO MAKE A POSITIVE CONTRIBUTION TO PERSHARE EARNINGS IN ITS FIRST QUARTER IN 1992 SCOTSMAN HAD SALES OF 1687 MILLION FOR THE NINE MONTHS ENDED OCT 3 SCOTSMAN HAD SALES OF 1318 MILLION 9312030103 931203 JUSTICE OFFICIALS SPEED ANTITRUST INQUIRY PROCEDURE WASHINGTON JUSTICE DEPARTMENT AND FEDERAL TRADE COMMISSION OFFICIALS ANNOUNCED NEW STEPS TO EXPEDITE DECISIONS REGARDING WHICH AGENCY WILL INVESTIGATE ANTITRUST MATTERS UNDER THE NEW PROCEDURES THE DETERMINATION ON WHICH AGENCY WILL HANDLE A PROPOSED MERGER WILL BE MADE WITHIN 10 DAYS OF THE INITIAL FILING OF INFORMATION BY THE COMPANIES BECAUSE FEDERAL LAW REQUIRES THE FIRST PORTION OF MERGER INQUIRIES TO BE COMPLETED IN 30 DAYS THE NEW STANDARD LEAVES AT LEAST 20 DAYS TO REACH THAT POINT THE AGENCIES PREVIOUSLY ATTEMPTED TO RESOLVE THE CLEARANCE ISSUES IN 20 DAYS WHICH LEFT 10 DAYS FOR THEM TO DETERMINE IF THEY NEEDED TO ISSUE A REQUEST FOR MORE INFORMATION IN MERGER INVESTIGATIONS PARTICULARLY THESE IMPROVED PROCEDURES SHOULD BENEFIT THE AGENCIES BY ALLOWING THEM ADDITIONAL TIME TO INVESTIGATE THE TRANSACTION AND SHOULD BENEFIT PARTIES TO THE TRANSACTION BY ALLOWING ISSUES TO BE IDENTIFIED AT AN EARLIER STAGE REDUCING THE BURDEN OF PRODUCING ADDITIONAL INFORMATION AND IN SOME CASES ELIMINATING THE NEED FOR INVESTIGATION SAID MARY LOU STEPTOE ACTING DIRECTOR OF THE FTC'S BUREAU OF COMPETITION 9312030102 931203 INTERNATIONAL MEXICO OFFICIAL FILES SUIT AGAINST EXAGENT OF IBM MEXICO CITY MEXICO'S ATTORNEY GENERAL HAS FILED CRIMINAL DEFAMATION CHARGES AGAINST THE FORMER AGENT OF INTERNATIONAL BUSINESS MACHINES INC WHO ALLEGED EARLIER THIS YEAR THAT GOVERNMENT AGENTS SOLICITED A BRIBE FROM HIM IN EXCHANGE FOR AN AIRPORT CONTRACT THE AGENT WHO HAD BEEN AN IBM CONTRACT EMPLOYEE CAUSED AN UPROAR WITH HIS ACCUSATION THE SCANDALOUS ALLEGATIONS GOT ADDITIONAL PUBLICITY WHEN HE TESTIFIED BEFORE THE US CONGRESS AS IT EXAMINED THE BUSINESS MERITS OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE EXAGENT KAVEH MOUSSAVI COULDN'T BE REACHED FOR COMMENT IN ENGLAND BUT HIS ATTORNEY ROBERT PERRY SAID THE GOVERNMENT'S ACTION WOULD HAVE A CHILLING EFFECT ON OTHER BUSINESS PEOPLE SPEAKING OUT AGAINST BRIBERY SOLICITATIONS AND OTHER FORMS OF MALFEASANCE IN THEIR BUSINESS DEALS MR MOUSSAVI ALLEGES HE WAS ASKED FOR A 1 MILLION BRIBE TO SECURE A CONTRACT FOR IBM FOR AIRPORTRADAR EQUIPMENT BUT YESTERDAY THE ATTORNEY GENERAL'S OFFICE SAID THAT ITS OWN INVESTIGATION DETERMINED THAT MR MOUSSAVI'S ACCUSATIONS ARE ABSOLUTELY FALSE MR MOUSSAVI BELIEVES THE INVESTIGATION WAS FAR TOO SUPERFICIAL IBM OFFICIALS ACKNOWLEDGED THAT MR MOUSSAVI TOLD THEM OF THE BRIBE ATTEMPT AND HIS PLANS TO GO PUBLIC BUT HAVE SAID THEY HAVE NO FURTHER PROOF TO BACK UP THE ALLEGATION 9312030100 931203 BUSINESS BRIEF GENERAL MOTORS CORP CONCERN ASC FORM VENTURE TO BUILD CONVERTIBLE CARS GENERAL MOTORS CORP SAID IT FORMED A JOINT VENTURE WITH ASC INC TO BUILD CONVERTIBLE VERSIONS OF THE CHEVROLET CAVALIER AND PONTIAC SUNBIRD IN LANSING MICH AS EARLY AS FEBRUARY 1995 THE VENTURE EXPECTS TO ASSEMBLE ABOUT 15000 CONVERTIBLES A YEAR SAID A GM SPOKESWOMAN EARLIER THIS YEAR GM ANNOUNCED IT WOULD BUILD 70000 TO 100000 CAVALIERS A YEAR IN ITS LANSING ASSEMBLY PLANT BEGINNING WITH THE 1995 MODEL YEAR THE CONVERTIBLE PRODUCTION WILL BE IN ADDITION TO THAT OUTPUT THE CONVERTIBLES WILL BE ASSEMBLED IN GM'S LANSING CRAFT CENTER WHICH HAS BEEN SEARCHING FOR WORK EVER SINCE GM DROPPED PLANS IN DECEMBER 1992 TO MASS PRODUCE ELECTRIC VEHICLES THERE THE JOINT VENTURE WILL EMPLOY 180 GM AND ASC WORKERS ALL OF WHOM WILL BE REPRESENTED BY THE UNITED AUTO WORKERS UNION ASC WHICH MANUFACTURES CONVERTIBLES FOR MAJOR AUTO COMPANIES CURRENTLY MAKES CONVERTIBLE VERSIONS OF THE CAVALIER AND SUNBIRD AT A NONUNION PLANT IN NORTH JACKSON OHIO THAT PLANT WILL STOP MAKING THE CONVERTIBLES WHEN THE LANSING PLANT BEGINS PRODUCTION 9312030099 931203 BUSINESS BRIEF PAGING NETWORK INC LAWSUIT FROM COMPETITORS IS DISMISSED IN CALIFORNIA PAGING NETWORK INC DALLAS SAID A LAWSUIT FILED AGAINST THE COMPANY BY A GROUP OF COMPETING PAGING CONCERNS HAS BEEN DISMISSED AT THE REQUEST OF THE PLAINTIFFS IN THE SUIT FILED IN US DISTRICT COURT IN CALIFORNIA IN MARCH THE FIVE COMPANIES SOUGHT 50 MILLION IN DAMAGES AND ACCUSED PAGING NETWORK OF TRYING TO DESTROY ITS COMPETITORS BY SELLING BELOW COST IN OCTOBER THE COURT DENIED THE PLAINTIFFS' REQUEST TO BRING THE LAWSUIT AS A CLASS ACTION AND THE SUIT WAS DISMISSED NOV 19 PAGING NETWORK SAID THE PLAINTIFFS INCLUDE COMMCENTER CORP AND CITIPAGE BOTH OF NEVADA PACIFIC COAST PAGING OF CALIFORNIA COMMUNICATIONS CENTER OF FLORIDA INC AND WDS COMMUNICATIONS INC OF TEXAS THE SUIT DIDN'T LIST THE CITIES WHERE THE COMPANIES ARE BASED 9312030098 931203 MONEYFUND ASSETS FELL TO 58863 BILLION IN MOST RECENT WEEK NEW YORK MONEYMARKET FUND ASSETS FELL 554 BILLION TO 58863 BILLION FROM A REVISED 59417 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 649 RETAIL MONEYMARKET MUTUAL FUNDS FELL BY 5751 MILLION TO 39678 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 406 TAXABLE MONEYMARKET FUNDS FELL BY 9622 MILLION TO 30999 BILLION ASSETS OF 243 RETAIL TAXEXEMPT FUNDS GREW BY 3871 MILLION TO 8678 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 496 BILLION TO 19186 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 220 TAXABLE MONEYMARKET FUNDS FELL BY 515 BILLION TO 16975 BILLION ASSETS OF 54 TAXEXEMPT FUNDS GREW BY 1921 MILLION TO 2210 BILLION 9312030097 931203 LEISURE & ARTS ON SPORTS 'AMAZIN'S' OF '69 CASH IN ON ANNIVERSARY BY FREDERICK C KLEIN WHEN ADLAI STEVENSON III SON OF THE LATE PRESIDENTIAL CANDIDATE RAN FOR PUBLIC OFFICE IN ILLINOIS REPUBLICANS DELIGHTED IN CALLING HIM THE POTATO CANDIDATE BECAUSE THEY SAID THE BEST PART OF HIM IS IN THE GROUND MUCH THE SAME THING CAN BE SAID ABOUT MAJOR LEAGUE BASEBALL A SPORT WHOSE PAST OFTTIMES SEEMS TO OUTSHINE ITS PRESENT THIS SITUATION TENDS TO BE UNSATISFACTORY TO THE MEN WHO HELPED FASHION THAT PAST AT LEAST TO THOSE WHO PLAYED BEFORE THE CURRENT POTO'GOLD ERA EVEN THE BEST OF THEM CAN BE EXCUSED FOR FEELING LIKE BEGGARS AT THE FEAST BUT NOW COMES A GROUP DETERMINED NOT TO BE DEALT OUT WHEN ITS EXPLOITS ARE CELEBRATED THEY ARE THE 1969 NEW YORK METS WHO WILL MARK THE 25TH ANNIVERSARY OF THEIR WORLD SERIES CHAMPIONSHIP SEASON NEXT YEAR THEY'VE FORMED AN ENTITY CALLED MIRACLE OF 1969 ENTERPRISES INC THROUGH WHICH THEY'LL SHARE IN WHAT THEY HOPE WILL BE A NOSTALGIA BONANZA THE FELLOW BEHIND THE EFFORT IS ART SHAMSKY WHO WITH RON SWOBODA CONSTITUTED THE LEFTYRIGHTY RIGHTFIELD PLATOON FOR THE TEAM HE GOT THE IDEA FOR IT IN 1989 AFTER THE 20TH ANNIVERSARY OF THE METS' UNLIKELY TRIUMPH BASEBALL NOSTALGIA TYPICALLY RUNS IN FIVEYEAR CYCLES STARTING WITH YEAR 20 CAME AND WENT WITHOUT MUCH FUSS THERE WAS AN OLDTIMERS' GAME AT SHEA STADIUM AND A CARD SHOW AND THAT WAS IT IT WAS VERY DISAPPOINTING SHAMSKY SAYS I FIGURED OUR SILVER ANNIVERSARY MIGHT BE OUR LAST CHANCE TO REALLY SCORE AND THAT WE'D BE KICKING OURSELVES IF WE DIDN'T DO EVERYTHING WE COULD TO TAKE ADVANTAGE OF IT THAT WAS NO ORDINARY TEAM OR YEAR YOU KNOW HE GOES ON IT WAS A BAD TIME FOR THE CITY AND THE WHOLE COUNTRY AND I THINK WE GAVE PEOPLE SOMETHING TO FEEL GOOD ABOUT WE HAD A GREAT CAST OF CHARACTERS AND IT WAS PROBABLY THE ONLY TIME EVER THAT A NEW YORK TEAM WAS PERCEIVED AS A LOVABLE UNDERDOG WE'LL BE TAPPING SOMETHING NATIONAL HERE ONE NEEDN'T HAVE CONSIDERED THE '69 METS LOVABLE TO AGREE THAT THEIR ACCOMPLISHMENT WAS SPECIAL THEY WERE ONLY THEIR EIGHTH YEAR OF EXISTENCE AND LITTLE REMOVED FROM CASEY STENGEL'S AWFUL AMAZIN'S THEY'D FINISHED NINTH IN THE 10TEAM NATIONAL LEAGUE THE YEAR BEFORE AND TRAILED THE CHICAGO CUBS BY A GOODLY MARGIN IN THE NL EAST WELL INTO AUGUST IN THE FIRST YEAR OF DIVISIONAL PLAY THEN THEY WON 38 OF 49 GAMES TO PASS CHICAGO BY A FINAL MARGIN OF EIGHT GAMES THEY SWEPT THE ATLANTA BRAVES IN THE LEAGUE PLAYOFF AND BUZZED THE HEAVILY FAVORED BALTIMORE ORIOLES IN A FIVEGAME WORLD SERIES TOM SEAVER JERRY KOOSMAN GARY GENTRY NOLAN RYAN AND TUG MCGRAW GAVE THE METS TERRIFIC PITCHING BUT SOME SAY THEY HAD THE WORST EIGHTMAN LINEUP OF ANY RECENT BASEBALL TITLIST SHAMSKY DOESN'T SHARE THE LATTER VIEW BUT ALLOWS THAT WE HAD QUITE A FEW PLAYERS WHO HAD THEIR BEST YEAR THAT SEASON ONE OF THEM WAS SHAMSKY HIMSELF HIS 300 BATTING AVERAGE WAS THE HIGH POINT OF AN EIGHTYEAR BIGLEAGUE CAREER IN WHICH HIS OVERALL MARK WAS 253 THE ST LOUIS NATIVE STAYED IN NEW YORK AFTER HIS BASEBALLPLAYING DAYS WERE OVER IN PART HE SAYS TO CAPITALIZE ON THE CHAMPIONSHIP SEASON LAST YEAR HE SET ABOUT CONTACTING HIS GEOGRAPHICALLY SCATTERED FORMER TEAMMATES AND COACHES ABOUT FORMING MIRACLE OF 1969 ENTERPRISES PERHAPS MIRACULOUSLY HE FOUND THEM ALL AND ALL AGREED TO A DEAL UNDER WHICH THEY'D SPLIT PRODUCTLICENSING INCOME EQUALLY AND PERSONALAPPEARANCE FEES ON THE BASIS OF PARTICIPATION THE COMPANY HAS 31 SHAREHOLDERS INCLUDING ALL THE COACHES AND PLAYERS WHO WERE ON THE WORLD SERIES ROSTER PLUS UTILITY PLAYER BOBBY PFEIL WHO WASN'T BUT WAS INCLUDED BY POPULAR DEMAND EQUAL SHARES WILL GO TO THE FAMILIES OF THE THREE DECEASED '69 METS MANAGER GIL HODGES COACH RUBE WALKER AND PITCHER CAL KOONCE NOT ALL THE OLD METS ARE EQUAL IN TERMS OF CELEBRITY OF COURSE HALL OF FAMER SEAVER AND SUREELECTEE RYAN TOWER OVER THEIR TEAMMATES IN THAT REGARD BUT SHAMSKY SAYS THAT WHILE THE TWO CERTAINLY WILL REAP THEIR OWN REWARDS FROM ANNIVERSARY COMMEMORATIONS EACH AGREED TO AN EQUAL SPLIT FOR FULLTEAM ENDEAVORS SEAVER WAS AMONG THE DOZEN '69ERS WHO WAVED AND SHIVERED FROM A FLOAT IN THIS YEAR'S MACY'S THANKSGIVING DAY PARADE METS MANAGEMENT HAS ALSO BEEN COOPERATIVE IT HAS ALLOWED ELEMENTS OF THE TEAM LOGO TO BE INCORPORATED INTO THE ANNIVERSARY LOGO WHICH WILL ADORN GEAR ENDORSED BY SHAMSKY'S GROUP AND INSTEAD OF JUST AN OLDTIMERS' GAME THE TEAM WILL STAGE A FRIDAYSUNDAY WEEKEND OF EVENTSPROBABLY IN JULYTO HONOR THE GROUP THE WAY THINGS HAVE BEEN GOING WITH THEM THE CURRENT METS THEY COULD USE SOME GOOD PR SHAMSKY OBSERVES APPEARANCES BY THE '69 METS WILL ACCELERATE ONCE 1994 BEGINS ALONG WITH THE UBIQUITOUS AND INIQUITOUS TRADINGCARD SHOWS THERE WILL BE RIBBON CUTTINGS STREET FESTIVALS PARADES GOLF OUTINGS AND BANQUETS OF VARIOUS SORTS THEY WON'T JUST BE IN OR AROUND NEW YORK SHAMSKY SAYS REQUESTS HAVE COME FROM FLORIDA NEVADA AND VIRGINIA AMONG OTHER PLACES THERE WILL BE '69 METS AUTOGRAPHED BASEBALLS TSHIRTS CAPS JERSEYS WARMUP JACKETS PENNANTS COLLECTOR PLATES KEY CHAINS JEWELRY BUMPER STICKERS PHOTOS POSTERS AND POSTCARDS ONE COMPANY HAS SIGNED ON TO USE THE TEAM'S LOGO ON INFANT WEAR INCLUDING DIAPERS ANOTHER IS DESIGNING A LINE OF '69 METS LEATHER BOMBER JACKETS THAT WILL SELL FOR BETWEEN 400 AND 450 EACH THE AMOUNT OF MONEY EACH OLD MET WILL REAP FROM THE ENDEAVOR WON'T BE DETERMINED UNTIL THE YEAR IS UP IT'D BE WORTH OUR WHILE IF WE STOPPED WITH WHAT WE'VE ALREADY LINED UP BUT THERE'LL BE MORE SHAMSKY ASSERTS HE NOTES THAT FOR TALKING PURPOSES HE'S BEEN BANDYING A FINAL FIGURE OF 18000 A PLAYER I USE THAT BECAUSE IT WAS OUR WORLD SERIES WINNERS' SHARE HE EXPLAINS IT WAS PRECISELY 1833818 COME TO THINK OF IT HE SAYS 18000 WAS HIS FULLSEASON SALARY THAT YEAR TOO 9312030096 931203 BUSINESS BRIEF RACAL ELECTRONICS PLC BRITISH GROUP POSTS A LOSS FOR SIX MONTHS ENDED OCT 8 BRITISH GROUP RACAL ELECTRONICS PLC SAID THURSDAY THAT FOR THE SIX MONTHS ENDED OCT 8 IT SWUNG TO A 388000 573270 LOSS FROM A PRETAX PROFIT OF 232 MILLION 343 MILLION IN THE YEAREARLIER PERIOD THE GROUP WHICH OPERATES DATA COMMUNICATIONS SECURITY BUSINESSES AND OTHER CONCERNS LEFT ITS INTERIM DIVIDEND UNCHANGED AT 15 PENCE 22 CENTS A SHARE RACAL'S PRETAX PROFIT WAS THROWN INTO A LOSS DUE TO PROVISIONS OF 202 MILLION FOR LOSSES ON DISPOSAL OR CLOSURE OF OPERATIONS RACAL SAID THAT WHILE IMPROVED SECONDHALF PERFORMANCES ARE EXPECTED FROM ITS DATA AND RADIO COMMUNICATIONS UNITS INCREASED SPENDING ON THE BRITISH ARMY BOWMAN PROJECT AND THE NATIONAL LOTTERY BID WILL LEAVE FULLYEAR OPERATING PROFIT FROM CONTINUING OPERATIONS SIMILAR TO THAT OF THE PREVIOUS YEAR 9312030095 931203 CREDIT MARKETS INVESTORS SCRAMBLE TO BUY NEW 10YEAR NOTES FROM MARRIOTT AMID CURRENT LOW LEVEL OF YIELDS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN YIELDS ARE LOW AND BOND INVESTORS ARE DESPERATE TO BOOST RETURNS THEY CAN FORGIVE ANYONE EVEN MARRIOTT CORP JUST 14 MONTHS AFTER COMPANY OFFICIALS COMMITTED WHAT MANY MONEY MANAGERS CONSIDERED A MORTAL SIN THE DECISION TO SPLIT MARRIOTT INTO TWO CONCERNS ONE OF WHICH WAS LOADED WITH MUCH OF THE COMPANY'S OLD DEBT THERE WAS ABSOLUTION FOR THE COMPANY INVESTORS PRACTICALLY CRAWLED OVER EACH OTHER TO GRAB A BIT OF A 150 MILLION OFFERING OF NONCALLABLE 10YEAR NOTES FROM MARRIOTT INTERNATIONAL INC WHICH PROVIDES LODGING AND SERVICES AND TOOK LITTLE OF MARRIOTT CORP'S OLD DEBT THE OTHER CONCERN IS HOST MARRIOTT CORP NOW OWNER OF MARRIOTT CORP'S REAL ESTATE AND CONCESSION OPERATIONS IT TOOK ON OVER 2 BILLION OF OLD DEBT IN THE SPLIT THERE WAS A FOOD FIGHT OVER THE BONDS SAID GEOFFREY L KURINSKY A PORTFOLIO MANAGER AT MFS ASSET MANAGEMENT GROUP THE DEAL SHOWS HOW INVESTORS ARE STRETCHING FOR YIELD HE SAID YESTERDAY THE 30YEAR TREASURY BOND'S YIELD ROSE TO 628 FROM 625 ON WEDNESDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD DROPPED MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 99 16/32 IN THE MUNICIPAL BOND MARKET EXPECTATIONS OF A 20 BILLION WAVE OF BOND CALLS IN JANUARY HAS KINDLED BUYING AND COULD GIVE A BIG BOOST TO THE MARKET IN THE NEXT WEEK OR SO ACCORDING TO MARKET ANALYSTS IN THE CORPORATE MARKET YESTERDAY THE HUNGER FOR HIGHER YIELDS AND SOME UNIQUE COVENANTS IN ITS PROSPECTUS HELPED MARRIOTT GO FROM DOG TO DARLING AT LEAST WITH SOME INVESTORS THE ISSUE WAS SOLD WITH A COUPON OF 675 AT A PRICE OF 99281 TO YIELD 685 105 PERCENTAGE POINTS ABOVE THE 10YEAR TREASURY NOTE'S YIELD THE ISSUES WERE SOLD THROUGH A GROUP OF UNDERWRITERS LED BY LEHMAN BROTHERS INC THE NOTES ARE RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP MR KURINSKY OF MFS SAID HE DIDN'T BUY ANY OF THE MARRIOTT NOTES BECAUSE HE STILL DIDN'T TRUST MARRIOTT ENOUGH TO ACCEPT THEM AT THE YIELDS THAT WERE OFFERED YESTERDAY HE HAD WANTED A SPREAD OF AT LEAST 125 PERCENTAGE POINTS OVER COMPARABLE TREASURYS BARBARA KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP WHO RECENTLY SAID SHE WOULD ONLY BUY THE NOTES IF THAT PLACE DOWN UNDER FREEZES OVER STAYED AWAY FROM THE NOTES ALSO SHE SAID SHE FELT VINDICATED THAT THE YIELD CAME AT A SPREAD OVER TREASURYS MUCH WIDER THAN SIMILARLY RATED CREDITS OTHER NOTES WITH SIMILAR RATINGS ARE TRADING AT JUST 090 TO 095 PERCENTAGE POINT ABOVE TREASURYS SHE SAID THE MARRIOTT BREAKUP INFURIATED INVESTORS PROMPTED MULTIPLE SUITS AND ULTIMATELY LED THE COMPANY TO SWAP OUTSTANDING BONDS FOR ONES WITH SLIGHTLY BETTER TERMS THE COMPANY STILL FACES A SUIT CONTENDING THAT MARRIOTT SHOULD HAVE DISCLOSED ITS BREAKUP PLAN BEFORE SELLING TWO BOND ISSUES LAST YEAR BUT GREG LOBO A PORTFOLIO MANAGER AT HGK ASSET MANAGEMENT WAS MORE THAN HAPPY TO BUY A FEW OF THE NOTES HE POINTED TO THE HEFTY YIELD PREMIUM THE COMPANY PAID TO ATTRACT INVESTORS COMPARED WITH BONDS BEARING SIMILAR CREDIT RATINGS IN FACT MR LOBO SAID HE USED THE MARRIOTT NOTES TO REPLACE SOME 10YEAR NOTES ISSUED BY CARNIVAL CRUISE LINES INC IN OCTOBER THE CARNIVAL CRUISE NOTES CARRY THE SAME CREDIT RATINGS AS THE MARRIOTT INTERNATIONAL NOTES SOLD YESTERDAY BUT THEIR YIELD IS ABOUT 650 ABOUT 035 PERCENTAGE POINT BELOW THE YIELD ON THE MARRIOTT NOTES HE SAID AS MUCH AS I'D LIKE TO EXPRESS MY DISPLEASURE AT MARRIOTT FOR WHAT THEY DID LAST YEAR HE EXPLAINED THE DEAL WAS GOING TO GET DONE WHETHER I PARTICIPATED IN IT OR NOT ACCORDING TO MR LOBO AND BRAD JACK HEAD OF CORPORATE UNDERWRITING AT LEHMAN BROTHERS THE ISSUE WAS SOLD OUT WITHIN 15 MINUTES AND INVESTORS WERE SCRAMBLING TO GET MORE ALLOTMENTS FROM THE VARIOUS INVESTMENT BANKS INVOLVED IN THE OFFERING MR JACK SAID THAT THE PRICE OF THE NOTES ROSE 3/8 POINT OR 375 FOR A NOTE WITH A 1000 FACE VALUE IN INTERDEALER TRADING YESTERDAY LATE YESTERDAY HOWEVER THE NOTES HAD NOT YET BEEN FREED TO TRADE IN THE SECONDARY MARKET SAID MR JACK PART OF THE ATTRACTION OF THE NOTES WAS AN UNUSUAL PROVISION IN THE PROSPECTUS THAT WOULD ALLOW INVESTORS TO FORCE MARRIOTT TO BUY BACK THE BONDS UNDER CERTAIN CIRCUMSTANCES THESE INCLUDE A CHANGE OF CONTROL AND A RATING DECLINE SAYS A FILING FOR THE OFFERING BEFORE THE OFFERING SENTIMENTS WERE SO KEEN FOR THE ISSUE THAT AN EMPLOYEE AT ONE OF THE BROKERDEALERS INVOLVED IN THE ISSUE SENT MS KENWORTHY A MESSAGE SHE RECOUNTED WARNING ICE CUBES REPORTED IN HELL SHE SAID IT READ WERE IT NOT FOR THE SPLITTING UP OF THE COMPANY WHICH OCCURRED IN OCTOBER SAID MS KENWORTHY SHE MIGHT HAVE PURCHASED SOME OF THE NOTES BECAUSE SHE THINKS HIGHLY OF MARRIOTT INTERNATIONAL IT'S A STRAIGHT SERVICE COMPANY SHE SAID IT SHOULD BE A LICENSE TO PRINT MONEY MR LOBO DESPITE HIS ENTHUSIASM FOR THE ISSUE ADMITTED THAT HE WASN'T EXACTLY COMMITTED FOR THE LONG TERM HE SAID HE PLANS TO SELL HIS HOLDINGS ONCE THE YIELD SPREAD FOR THE MARRIOTT NOTES OVER COMPARABLE TREASURYS HAS NARROWED TO 090 PERCENTAGE POINT SOMETHING HE EXPECTS TO HAPPEN FAIRLY QUICKLY GIVEN INVESTOR DEMAND FOR ANY HIGHERYIELDING SECURITY FOR TRADERS IN THE TREASURY MARKET YESTERDAY WAS A DAY OF DIGGING IN AND PILING UP SANDBAGS AHEAD OF POTENTIAL MARKETMOVING NEWS IN THE NOVEMBER EMPLOYMENT REPORT WHICH IS SLATED TO BE RELEASED TODAY AMID THE DEFENSIVE POSTURING PRICES OF US TREASURY NOTES AND BONDS POSTED MODEST LOSSES THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/4 POINT WHILE THE 10YEAR NOTE DROPPED NEARLY 1/4 POINT TO 99 19/32 FOR A YIELD OF 579 UP FROM 576 ON WEDNESDAY IT WAS A VERY QUIET DAY SAID ANDREW BRENNER A TRADER AT NOMURA SECURITIES INTERNATIONAL INC PEOPLE WERE JUST PREPPING FOR THE NUMBER THE PRICES OF TREASURY SECURITIES ENDED THE DAY ABOVE THEIR LOWS FOR THE SESSION THEY WERE BOLSTERED BY ANOTHER BIG DROP IN ENERGY PRICES CRUDEOIL FUTURES FOR JANUARY DELIVERY ON THE NEW YORK MERCANTILE EXCHANGE DROPPED 53 CENTS TO END AT 1495 WITH THEIR SIGHTS FIXED ON THE NOVEMBER LABORMARKET DATA TRADERS LARGELY IGNORED SEVERAL ECONOMIC FIGURES RELEASED YESTERDAY COVERING PERSONAL INCOME AND SPENDING JOBLESS CLAIMS AND NEWHOME SALES TRADERS AND INVESTORS ARE HOPING THAT THE EMPLOYMENT REPORT WILL BEGIN TO DISPEL SOME OF THE CONFUSION OVER WHERE THE ECONOMY IS HEADED IN 1994 ALMOST EVERYBODY BELIEVES THE ECONOMY WILL BE SLOWER AFTER THE FIRST OF THE YEAR SAID STEVE WOOD DIRECTOR OF FINANCIALMARKETS RESEARCH AT BA SECURITIES THE REAL QUESTION IS HOW MUCH SLOWER AND THE MARKET IS TELLING YOU IT IS REAL UNCERTAIN ABOUT WHAT IS GOING TO HAPPEN LATE YESTERDAY THE FEDERAL RESERVE REPORTED THAT ITS WIDELY WATCHED M2 FIGURE A MEASURE OF MONEY SUPPLY ROSE 800 MILLION IN THE WEEK ENDED NOV 22 THAT PUTS M2 GROWTH RATE AT 15 COMPARED WITH THE FOURTHQUARTER BASE OF LAST YEAR WHICH IS JUST WITHIN THE FED'S TARGET RANGE OF 1 TO 5 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 THE TREASURY SOLD 402 BILLION OF 10DAY CASHMANAGEMENT BILLS AT AN AVERAGE DISCOUNT RATE OF 300 HERE ARE THE DETAILS OF THE AUCTION 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 COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED DEC 6 AND MATURE DEC 16 1993 CONCERNS ABOUT THE JANUARY EFFECT IN THE MUNICIPAL BOND MARKET ARE ALREADY SPURRING BUYING AND GIVING MUNIS SOLID UNDERLYING SUPPORT TRADERS SAY PRICES TEND TO RISE AT THE START OF EACH YEAR BECAUSE SUPPLY IS PARED BY HEAVY JANUARY BOND CALLS AND A SEASONAL ISSUANCE SLOWDOWN WITH NEXT MONTH'S BOND CALLS ESTIMATED AT AS MUCH AS 20 BILLION THERE IS APPARENTLY SOME BUYING GOING ON IN ANTICIPATION OF A SUPPLY DRAIN MERE EXPECTATIONS OF THE JANUARY EFFECT ARE ENOUGH TO ENCOURAGE PURCHASES SAID DENIS GALLE A MANAGING DIRECTOR AT LEBENTHAL & CO BUT WHILE THERE IS INDEED SOME MUNI BUYING GOING ON IT'S NOT GOING TO DRIVE US YET HE ADDED FORECASTING THAT BUYING WILL INCREASE IN THE NEXT WEEK OR SO MUNIS FINISHED 1/4 TO 3/4 POINT HIGHER IN SLOW DEALINGS AMONG SECONDARY ISSUES THE FLORIDA BOARD OF EDUCATION'S 5125 BONDS OF 2022 FINISHED 1/4 FIRMER AT 94 1/4 TO YIELD 551 THE PRIMARY MARKET TOOK A BREATHER YESTERDAY AFTER THE PRICING OF MORE THAN 3 BILLION OF MUNIS IN THE PREVIOUS TWO DAYS PRICES OF MORTGAGE SECURITIES ENDED LITTLE CHANGED GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 SECURITIES FOR DECEMBER DELIVERY CLOSED AT 98 25/32 TO YIELD 671 A 092 PERCENTAGE POINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE ON WEDNESDAY THAT SPREAD STOOD AT 094 PERCENTAGE POINT AT THE CLOSE OTHER 65 MORTGAGE PASSTHROUGHS FOR DECEMBER DELIVERY WERE UP 2/32 AT THE CLOSE FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED AT 99 2/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED AT 98 27/32 IN NEWS INTEGRAL TO THE MORTGAGE MARKET THE MORTGAGE BANKERS ASSOCIATION REPORTED THAT ITS INDEX OF HOMEOWNER REFINANCING ACTIVITY DROPPED TO 879 IN THE WEEK ENDED NOV 26 FROM A REVISED 10151 IN THE PREVIOUS WEEK THAT LIKELY REFLECTS THE UPTICK IN INTEREST RATES ANALYSTS SAY AND IT'S GOOD NEWS FOR MORTGAGE INVESTORS THAT'S BECAUSE A DROP IN REFINANCING ACTIVITY LIKELY WILL MEAN FEWER EARLY REDEMPTIONS DUE TO PREPAYMENTS OF SECURITIES BACKED BY HOME LOANS PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID THE LAST TIME THE REFINANCING INDEX WAS BELOW 1000 WAS JULY CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9312030093 931203 INTERNATIONAL BRIEF GRAND METROPOLITAN PLC ANNUAL PRETAX PROFIT FELL 31 ON EXCEPTIONAL ITEMS UK FOOD AND DRINKS COMPANY GRAND METROPOLITAN PLC REPORTED PRETAX PROFIT IN THE YEAR ENDED SEPT 30 FELL 31 TO 630 MILLION 930 MILLION BUT THE DOWNTURN WAS THE RESULT OF 286 MILLION IN EXCEPTIONAL ITEMS SALES ROSE 15 TO 758 BILLION 112 BILLION FROM 658 BILLION AND THE COMPANY SAID ITS TOP BRANDS SUCH AS BURGER KING HAAGENDAZS ICE CREAM AND ALPO PET FOOD PERFORMED WELL IN ADDITION TO A 175 MILLION RESTRUCTURING CHARGE GRAND MET'S 286 MILLION OF EXCEPTIONAL ITEMS INCLUDED A WRITEDOWN ON PROPERTIES OF 50 MILLION A PROVISION OF 86 MILLION AGAINST DEBT DUE GRAND MET BY BRENT WALKER GROUP PLC AND COSTS RELATING TO THE DISPUTE WITH THAT COMPANY AND NET PROFITS OF 25 MILLION FROM ASSET SALES 9312030092 931203 JONES INTERCABLE ENTERS ACCORD WITH BCE INC CANADIAN PHONE COMPANY TO ACQUIRE 30 STAKE OPTION TO TAKE CONTROL BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL ANAHEIM CALIF A CANADIAN TELECOMMUNICATIONS GIANT HAS AGREED TO PAY 400 MILLION FOR A 30 STAKE IN JONES INTERCABLE INC AND AN OPTION TO EVENTUALLY BUY CONTROL OF THE WHOLE COMPANY BCE INC'S INTERNATIONAL TELECOMMUNICATIONS SUBSIDIARY SIGNED A LETTER OF INTENT TO ACQUIRE THE STAKE IN JONES THE SEVENTHLARGEST CABLETELEVISION OPERATOR IN THE US WITH 16 MILLION SUBSCRIBERS AS NEWS OF THE PACT SPREAD AT THE CABLETV INDUSTRY'S BIG TRADE SHOW HERE THE TRANSACTION IS THE LATEST IN A FLURRY OF ALLIANCES AND MERGERS BETWEEN CABLETV COMPANIES AND TELEPHONE COMPANIES WHICH HAD LONG BEEN SEEN AS ARCHRIVALS IT WILL GIVE BCE THE LARGEST PUBLICLY HELD COMPANY IN CANADA WHOSE PROPERTIES INCLUDE BELL CANADA LTD AND A 52 STAKE IN NORTHERN TELECOM LTD A MAJOR ENTRY IN THE US CABLE MARKET IT ALSO BANKROLLS JONES INTERCABLE AS IT SEEKS TO BUY SMALLER CABLE SYSTEMS TO GIRD FOR THE NEW ERA OF COMPETITION WITH EVERRICHER RIVALS BCE AND JONES ALREADY ARE PARTNERS IN THE UNITED KINGDOM WHERE THEY OFFER CABLETV AND TELEPHONE SERVICES JOINTLY TO RESIDENCES AND BUSINESSES IN A LARGE AREA OF LONDON SUCH OFFERINGS ARE MOSTLY PROHIBITED IN THE US BUT SEVERAL BABY BELL PHONE COMPANIES HAVE TAKEN LEGAL ACTION TO TRY TO OVERTURN THE PROHIBITION JONES INTERCABLE BASED IN ENGLEWOOD COLO AND ITS PARENT JONES INTERNATIONAL LTD ARE RUN BY FOUNDER GLENN R JONES A COLORFUL CABLE PIONEER AND ONETIME UNDERWATER BOMBDISPOSAL EXPERT FOR THE NAVY HE BOUGHT HIS FIRST CABLE SYSTEM IN COLORADO IN 1967 WITH 400 BORROWED AGAINST HIS VOLKSWAGEN MR JONES WHOSE PET PROJECTS INCLUDE THE COLLEGEONTV CHANNEL MIND EXTENSION/UNIVERSITY APPARENTLY ISN'T ANXIOUS TO SELL OUT ENTIRELY THE PACT WOULD LET BCE RAISE ITS STAKE TO CONTROL 75 OF THE BOARD OF JONES ONLY AFTER EIGHT YEARS YOU EITHER GET WITH IT YOU SELL OUT OR GET MOPPED UP MR JONES SAID IN AN INTERVIEW YESTERDAY AT HIS HOTEL SUITE HERE HE SAID HE TOOK ON BCE AS A PARTNER TO BANKROLL THE MAJOR INVESTMENTS IN NEW TECHNOLOGY THAT THE NEW ERA WILL REQUIRE BECAUSE BCE DOESN'T OWN ANY OTHER US CABLETV INTERESTS AND DOESN'T OFFER PHONE SERVICE HERE THEY HAVE NO DIVESTING TO DO AND NO TURF TO PROTECT MR JONES SAID CABLE OPERATORS RUSHED TO ALLY WITH PHONE COMPANIES AND VICE VERSA IN THE WAKE OF BELL ATLANTIC CORP'S AGREEMENT TWO MONTHS AGO TO ACQUIRE TELECOMMUNICATIONS INC THE NATION'S BIGGEST CABLETV COMPANY NOW ANOTHER BIG PLAYER CABLEVISION SYSTEMS CORP WITH 21 MILLION SUBSCRIBERS IS BELIEVED TO BE IN ACQUISITION TALKS WITH SUITORS INCLUDING U S WEST INC COX COMMUNICATIONS INC IS IN TALKS WITH SOUTHWESTERN BELL CORP ABOUT FORMING A COMBINED CABLE TITAN IN THE JONES DEAL BCE TELECOM INTERNATIONAL WOULD INITIALLY INVEST ABOUT 275 MILLION TO PURCHASE CLASS A SHARES OF JONES AT 2750 APIECE A HANDSOME PREMIUM OVER THEIR CLOSING PRICE YESTERDAY OF 1650 A SHARE UP 50 CENTS IN NASDAQ STOCK MARKET TRADING TO MAINTAIN A 30 STAKE BCE WILL PAY AN EXTRA 125 MILLION IN THE FUTURE AS JONES INTERCABLE OFFERS ADDITIONAL SHARES TO THE MARKET AS ANTICIPATED THE COMPANIES SAID IN ADDITION BCE WILL PAY 23 MILLION FOR A 15 STAKE IN JONES EDUCATION NETWORKS AND A 50 STAKE IN JONES LIGHTWAVE LTD BOTH UNITS OF JONES INTERCABLE JONES EDUCATION OPERATES MIND EXTENSION/UNIVERSITY AND JONES LIGHTWAVE COMPETES WITH PHONE COMPANIES FOR BUSINESS CUSTOMERS BCE IS THE LARGEST TELECOMMUNICATIONS COMPANY IN CANADA AND ITS BELL CANADA UNIT IS THE COUNTRY'S BIGGEST PHONE COMPANY BUT BCE'S ANNUAL REVENUE OF 20 BILLION CANADIAN DOLLARS US15 BILLION MAKES IT AT BEST A MIDDLING PLAYER THE JONES TRANSACTION IS BCE'S SECOND MOVE IN THE PAST YEAR TOWARD BECOMING A SIGNIFICANT GLOBAL PLAYER IN TELECOMMUNICATIONS THE MONTREAL COMPANY IN JANUARY INVESTED MORE THAN 700 MILLION TO TAKE A 20 STAKE IN MERCURY COMMUNICATIONS LTD A BRITISH TELEPHONE SUBSIDIARY OF CABLE & WIRELESS PLC ITS QUEST TO EXPAND INTERNATIONALLY IS DRIVEN PARTLY BY REGULATORY CONSTRAINTS IN CANADA WITH CABLE AND TELEPHONE TECHNOLOGIES CONVERGING WE SAW THE US AS AN IMPORTANT ELEMENT IN OUR GLOBAL STRATEGY SAID DEREK BURNEY BCE TELECOM'S CHAIRMAN AND A FORMER CANADIAN AMBASSADOR TO THE US SEPARATELY YESTERDAY BCE DISCLOSED WRITEDOWNS TOTALING ABOUT C750 MILLION THE SUM COMPRISES AN AFTERTAX CHARGE OF C400 MILLION TO DISPOSE OF MOST ASSETS OF ITS UNPROFITABLE MONTREAL TRUSTCO INC UNIT IN EXCHANGE FOR 10 MILLION SHARES IN THE BUYER BANK OF NOVA SCOTIA AS WELL AS A NET CHARGE OF C350 MILLION TO SELL ITS REAL ESTATE INTERESTS TO CARENA DEVELOPMENTS LTD OF TORONTO CHRISTOPHER J CHIPELLO IN MONTREAL CONTRIBUTED TO THIS ARTICLE 9312030091 931203 INSURANCE REGULATORS MAY MOVE TO CURB FIRMS THAT BUY POLICIES FROM THE DYING BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS THIS WEEKEND IS EXPECTED TO MOVE TO CURB A HOTLY DEBATED TREND BUYING LIFE INSURANCE FROM THE DYING THE MEASURE CALLED THE VIATICAL SETTLEMENT MODEL ACT WAS DRAWN UP BY THE INSURANCE INDUSTRY AND OTHER CONCERNED PARTIES TO RESPOND TO DEMANDS FOR REGULATION OF VIATICAL BUSINESSES OR BUSINESSES THAT HELP PROVIDE FUNDS TO TERMINALLY ILL PATIENTS BY PURCHASING THEIR LIFE INSURANCE POLICIES AT A DISCOUNT MUCH OF THE INTEREST IN SUCH SALES HAS RISEN DUE TO THE AIDS EPIDEMIC VICTIMS WANT TO CASH IN THEIR POLICIES TO HELP PROVIDE MONEY FOR THEIR FINAL YEARS BY ONE ESTIMATE FROM THE NATIONAL VIATICAL ASSOCIATION BASED IN WACO TEXAS ABOUT 200 MILLION IN LIFE INSURANCE PROCEEDS WAS TRANSFERRED THIS YEAR UNDER SUCH PROGRAMS THE GROUP ASSERTS THE AMOUNT HAS BEEN DOUBLING ANNUALLY IN ADDITION ABOUT 150 LIFE INSURANCE COMPANIES WILL PROVIDE POLICY PROCEEDS UNDER ACCELERATED BENEFIT RIDERS ABOUT THREE MILLION POLICIES INCLUDE SUCH RIDERS INSURANCE INDUSTRY TRADE GROUPS SAY WHILE INSURERS ARE SUPERVISED BY STATES REGULATORS ARE CONCERNED THAT THE UNREGULATED VIATICAL COMPANIES NUMBERING ABOUT 54 NOW FROM ONLY FIVE IN 1990 MAY FAIL TO DELIVER THE SERVICES THEY PROMISE MAY FAIL TO WARN POLICYHOLDERS THAT SELLING THEIR POLICIES COULD RESULT IN TAX CONSEQUENCES OR THAT RECEIVING THE FUNDS MAY AFFECT MEDICAID AND OTHER GOVERNMENT BENEFITS VIATICAL COMPANIES AREN'T LICENSED IN MOST STATES SAID DAVID LYONS AN NAIC OFFICER WHO CHAIRED THE COMMITTEE TO DRAFT THE ACT AND THESE ARRANGEMENTS ARE BY NATURE MARKETED TO A PARTICULARLY VULNERABLE GROUP OF PEOPLE THE DESPERATELY TERMINALLY ILL ONLY FOUR STATES CALIFORNIA NEW MEXICO KANSAS AND NEW YORK REGULATE THE INDUSTRY WE DON'T KNOW WHAT CUSTOMERS ARE BEING TOLD BY VIATICAL COMPANIES SAID ED BARKS ANOTHER NAIC OFFICIAL THE NAIC MODEL ACT SEEKS TO ADDRESS THESE CONCERNS REQUIRING CONDITIONS SUCH AS AGREEDUPON PAYMENTS AND THE POSSIBILITY OF TAX CONSEQUENCES TO BE CLEARLY DISCLOSED PRIOR TO THE TRANSACTION THE MODEL LAW ALSO WOULD REQUIRE VIATICAL FIRMS TO BE LICENSED BY STATE INSURANCE DEPARTMENTS AND TO SUBMIT ANNUAL REPORTS THE MODEL LEGISLATION IF APPROVED WILL BE MADE AVAILABLE TO THE VARIOUS STATES FOR POSSIBLE ADOPTION APPROVAL APPEARS LIKELY NAIC OFFICIALS SAID WE'VE HAD OBJECTIONS TO PARTICULAR PIECES OF THE ACT SAID MR LYONS BUT WE FEEL COMFORTABLE GOING FORWARD DAVID PETERSON A FINANCIAL PLANNER AND AIDS PATIENT HIMSELF WHO ADVISES THE TERMINALLY ILL IN NEW YORK SAID I THINK STATES ARE GOING TO HOP ON THE BANDWAGON STILL MR PETERSON FEARS THAT THE MODEL LEGISLATION FAILS TO ADDRESS THE CONTESTABILITY OF CERTAIN INSURANCE CLAIMS OR TO HELP PREVENT PROVIDERS OF MEDICAL SERVICES FROM PRESSURING PATIENTS INTO A VIATICAL DECISION IN ORDER TO PAY MEDICAL BILLS IN ADDITION THE MEASURE DOESN'T COVER VIATICAL BROKERS WHO HELP LOCATE CUSTOMERS TO BUY INSURANCE POLICIES I DON'T BELIEVE THAT THESE BROKERS REALLY DO SHOP FOR THE POLICIES THAT GET THE BEST BID SAYS ATTORNEY MARK SCHERZER WHO HELPED DRAFT NEW YORK'S VIATICAL REGULATIONS THAT PASSED THIS SUMMER SOME REGULATORS ARE RELUCTANT TO GIVE RECOGNITION TO THE VIATICAL INDUSTRY PREFERRING TO FOCUS ON PERSUADING INSURANCE COMPANIES TO BE MORE FLEXIBLE IN DEALING WITH CLAIMS OF TERMINALLYILL POLICYHOLDERS BRIAN PARDO PRESIDENT OF THE VIATICAL GRADE GROUP AND OF LIFE PARTNERS INC A VIATICAL COMPANY IN WACO CALLED THE MODEL UNIQUELY BIASED TOWARD INSURANCEINDUSTRY INTERESTS HE ARGUED IT COULD LIMIT THE OPTIONS OF THE DYING WHAT'S INVOLVED HERE IS THE RIGHT OF SOMEONE SELLING A PERSONAL ASSET OUR VIEW IS TO LEAVE THAT TO A COMPETITIVE FREEMARKET TRANSACTION 9312030089 931203 HELPWANTED ADS ROSE DURING OCTOBER WEST COAST STILL WEAK NEW YORK HELPWANTED ADVERTISING ROSE IN OCTOBER A SIGN OF IMPROVED ECONOMIC CONDITIONS BUT THE JOB MARKET REMAINS WEAK ON THE WEST COAST THE CONFERENCE BOARD SAID ITS HELPWANTED ADVERTISING INDEX WHICH IS SEASONALLY ADJUSTED ROSE FOUR POINTS IN OCTOBER TO 105 A YEAR AGO THE FIGURE WAS 91 THE INDEX HADN'T BEEN AT THE 105 LEVEL SINCE LATE 1990 THE MONTHLY REPORT BY THE BUSINESS RESEARCH ORGANIZATION SURVEYS HELPWANTED ADVERTISING VOLUME IN 51 MAJOR NEWSPAPERS ACROSS THE COUNTRY PROVIDING A GAUGE OF CHANGE IN THE SUPPLY OF JOBS ABOUT THREEFOURTHS OF THE NATION'S LABOR MARKETS HAD RISING AD VOLUME IN OCTOBER UP FROM 49 IN SEPTEMBER KEN GOLDSTEIN CONFERENCE BOARD ECONOMIST NOTED THAT IN THE LAST THREE MONTHS AD VOLUME HAS RISEN IN SEVEN REGIONS AND FALLEN IN TWO WITH THE WEST NORTH CENTRAL AND THE MOUNTAIN REGIONS SHOWING THE LARGEST GAINS 16 EACH MIDDLE ATLANTIC ADS ROSE 93 AND EAST NORTH CENTRAL 63 BUT ADVERTISING VOLUME FELL 48 IN NEW ENGLAND AND 31 IN THE PACIFIC REGION HELPWANTED AD VOLUME HAS RISEN BY ONETHIRD OVER THE LAST YEAR IN THE WEST NORTH CENTRAL REGION WHICH INCLUDES MINNEAPOLIS OMAHA NEB AND ST LOUIS AND KANSAS CITY MO WITH HALF OF THE INCREASE IN THE LAST THREE MONTHS AND THE MOUNTAIN STATES HAVE SHOWN GAINS ALMOST AS STRONG THE ONE REGION STILL ON THE DANGER LIST IS THE PACIFIC REGION WHERE JOB ADVERTISING VOLUME HAS ACTUALLY DECLINED IN THE LAST THREE MONTHS MR GOLDSTEIN SAID A FULL COMEBACK IN THIS REGION IS NOT LIKELY UNTIL LATE WINTER OR EARLY SPRING 9312030088 931203 BUSINESS BRIEF GREAT WESTERN OFFER FOR HOMEFED BANK WINS SEALED BIDDING GREAT WESTERN FINANCIAL CORP THE 38 BILLION CHATWORTH CALIF THRIFT THAT HAD LONG COVETED THE ATTRACTIVE DEPOSITS AND BRANCH NETWORK OF THE NOWDEFUNCT HOMEFED BANK OF SAN DIEGO WAS THE SUCCESSFUL BIDDER FOR MOST OF HOMEFED'S ASSETS IN A RECENT FEDERAL AUCTION NEITHER GREAT WESTERN HOMEFED NOR THE FEDERAL GOVERNMENT WOULD COMMENT ON A FORMAL ANNOUNCEMENT SCHEDULED FOR TODAY FROM THE RESOLUTION TRUST CORP THE FEDERAL AGENCY CHARGED WITH DISPOSITION OF TROUBLED THRIFTS RESULTS OF THE SEALEDBID AUCTION WHICH TOOK PLACE NOV 19 OF HOMEFED'S 119 BRANCHES AND 4 BILLION OF DEPOSITS ARE SLATED TO BE ANNOUNCED BY THE FEDERAL AGENCY TODAY IN SAN DIEGO PREVIOUSLY THE RTC HAD SOLD MANY OF HOMEFED'S ASSETS IN CHATSWORTH CALIF A SPOKESMAN FOR GREAT WESTERN SAID YESTERDAY IT IS BOTH THE COMPANY'S POLICY AS WELL AS THE POLICY OF THE RTC NOT TO COMMENT ON RUMORS ABOUT ACQUISITIONS OR MERGERS IN WASHINGTON RTC OFFICIALS DECLINED COMMENT ACKNOWLEDGING ONLY THAT THEIR GOAL WAS TO FINALIZE THE DISPOSITION OF HOMEFED BY TODAY HOWEVER IT'S NO SECRET GREAT WESTERN HAD PUBLICLY EXPRESSED INTEREST IN THE HOMEFED SYSTEM A YEAR AGO THE COMPANY SPOKESMAN ADDED CITING THE EXCELLENT CALIFORNIA BRANCH FRANCHISE AND GOOD QUALITY DEPOSITS OF THE SAN DIEGO THRIFT ENHANCING ITS BRANCH NETWORKS IN BOTH CALIFORNIA AND FLORIDA HAS LONG BEEN A KEY PART GREAT WESTERN'S STRATEGY FOR FUTURE GROWTH THE SPOKESMAN ADDED GREAT WESTERN SHARES ROSE 375 CENTS TO 18 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9312030087 931203 BIOPHARM CLINICAL AFFINITY BIOTECH HAVE AGREEMENT TO MERGE ASTON PA AFFINITY BIOTECH INC AND BIOPHARM CLINICAL SERVICES INC SAID THEY SIGNED A LETTER OF INTENT TO MERGE IN A TRANSACTION THAT VALUES BIOPHARM AT ABOUT 25 MILLION AFFINITY USES PROPRIETARY TECHNOLOGY TO HELP DRUG COMPANIES ACHIEVE IMPROVED DOSE FORMS OF EXISTING DRUGS WHILE BIOPHARM DESIGNS IMPLEMENTS AND EXECUTES CLINICAL TRIALS REQUIRED FOR REGULATORY APPROVAL FOR DRUG COMPANIES AFFINITY WILL ISSUE ABOUT 61 MILLION SHARES OF COMMON TO HOLDERS OF CLOSELY HELD BIOPHARM AND WILL CONVERT BIOPHARM OPTIONS TO OPTIONS ON ABOUT 18 MILLION AFFINITY SHARES ON A FULLY DILUTED BASIS HOLDERS OF BIOPHARM BLUE BELL PA WILL OWN ABOUT 55 OF THE NEW COMPANY AND AFFINITY HOLDERS WILL OWN ABOUT 45 THE BOARD OF THE COMBINED COMPANY WILL HAVE EQUAL REPRESENTATION FROM THE TWO COMPANIES WITH AN ADDITIONAL MUTUALLY AGREEDUPON DIRECTOR TO BE NAMED AT THE TIME OF OR BEFORE THE MERGER'S COMPLETION VENTURECAPITAL FUNDS ARE EXPECTED TO MAKE EQUITY INVESTMENTS TOTALING 4 MILLION IN BIOPHARM AND THE EQUITY SECURITIES WOULD BE CONVERTED INTO AN ADDITIONAL 12 MILLION SHARES OF COMMON OF AFFINITY IN THE MERGER THE VENTURE FUNDS ARE CURRENTLY EQUITY INVESTORS IN AFFINITY OR BIOPHARM AND FOLLOWING THE 4 MILLION INVESTMENT AND THE MERGER WILL HOLD ABOUT 18 OF THE COMBINED COMPANY WINSTON J CHURCHILL AFFINITY'S CHAIRMAN WILL BE CHAIRMAN OF THE NEW COMPANY AND GERALDINE HENWOOD PRESIDENT AND CHIEF EXECUTIVE OF BIOPHARM WILL ASSUME THOSE POSTS IN THE NEW COMPANY THE MERGER WHICH IS EXPECTED TO BE COMPLETED BY THE END OF THE FIRST QUARTER WILL SUBSTANTIALLY INCREASE REVENUE AT AFFINITY WHICH HAD SALES OF ABOUT 553000 IN 1992 BIOPHARM EXPECTS TO HAVE 1993 REVENUE OF 23 MILLION TO 25 MILLION AND IT HAS A CONTRACT BACKLOG OF 48 MILLION ON THE NASDAQ STOCK MARKET YESTERDAY AFFINITY CLOSED AT 375 UP 625 CENTS OR 20 9312030086 931203 KMART TO SELL PAYLESS DRUGSTORE UNIT AT OVER 1 BILLION 592 MILLION IN CASH BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP SAID IT INTENDS TO SELL ITS PAYLESS DRUGSTORE UNIT TO A LOS ANGELES INVESTMENT FIRM IN A TRANSACTION VALUED AT MORE THAN 1 BILLION BUT KMART WON'T GET NEARLY AS MUCH CASH AS IT SOUGHT MAY HAVE TO TAKE A 100 MILLION FOURTHQUARTER CHARGE AND ALSO WILL HAVE TO TAKE A 47 STAKE IN THE BUYER UNDER THE AGREEMENT WITH TCH CORP A COMPANY OWNED BY INVESTOR LEONARD GREEN'S MERCHANTBANKING FIRM KMART WILL RECEIVE 592 MILLION IN CASH FOR PAYLESS WHICH HAS 572 STORES AND CARRIES A BOOK VALUE OF ABOUT 11 BILLION PEOPLE FAMILIAR WITH THE TRANSACTION HAD PREVIOUSLY SAID THE NATION'S NO 2 RETAILER TENTATIVELY AGREED TO SELL THE UNIT TO MR GREEN'S FIRM BUT KMART WAS UNDERSTOOD TO BE SEEKING AS MUCH AS 1 BILLION IN CASH FOR THE UNIT AS PART OF THE COMPLEX TRANSACTION TCH WILL ASSUME OR REFINANCE ABOUT 170 MILLION OF PAYLESS DEBT KMART WILL GET ABOUT 100 MILLION IN TCH SUBORDINATED DEBT SECURITIES AND COMMON STOCK REPRESENTING ABOUT 47 OF TCH CURRENT TCH STOCKHOLDERS WILL RETAIN 53 OF THE EQUITY KMART SAID THE AMOUNT OF ANY AFTERTAX CHARGE HINGES ON THE YETUNDETERMINED VALUE OF KMART'S PLANNED STAKE IN TCH IN FISCAL 1993'S FOURTH QUARTER ENDED JAN 27 KMART POSTED NET INCOME OF 535 MILLION OR 115 A SHARE ON SALES OF 1147 BILLION KMART IS UNDER PRESSURE TO SHED ALL OR PARTS OF ITS SPECIALTY BUSINESSES AND TO FOCUS ON ITS CORE DISCOUNT STORES THE RETAILER BASED IN TROY MICH WAS NOT DEALING FROM A POSITION OF STRENGTH SAID ONE ANALYST IF ASSUMING AN EQUITY INTEREST IN THE ACQUIRING COMPANY WAS THE ONLY WAY IT COULD SELL PAYLESS AND STILL REACH ITS 1 BILLION TARGET KMART DECLINED TO COMMENT ON HOW MUCH IT HAD EXPECTED THE UNIT TO FETCH A SPOKESMAN SAID ONLY THIS IS THE BEST PACKAGE WE COULD GET FOR OUR SHAREHOLDERS ANALYSTS HAD FIGURED THE UNIT'S VALUE TO BE ABOUT 700 MILLION TO 800 MILLION BASED ON EARNINGS MULTIPLES OF PUBLICLY TRADED DRUGSTORE CHAINS THE SALE EXPECTED TO BE COMPLETED BY THE END OF FISCAL 1995'S FIRST QUARTER HELPS ENSURE THAT KMART WON'T HAVE TO CUT ITS DIVIDEND OR DELAY SPENDING ON A 3 BILLION PROGRAM TO MODERNIZE ITS DISCOUNT STORES AS SOME ANALYSTS HAD PREDICTED IT ALSO IS ANOTHER STEP TOWARD FOCUSING THE COMPANY ON ITS TROUBLED DISCOUNT STORES LAST MONTH KMART AGREED TO SELL MOST OF ITS PACE MEMBERSHIP WAREHOUSE UNITS TO WALMART STORES INC AND SAID IN OCTOBER THAT IT WAS CONSIDERING SELLING MINORITY STAKES THROUGH INITIAL PUBLIC OFFERINGS IN FOUR OTHER SPECIALTY BUSINESSES TCH WOULD OPERATE PAYLESS ALONG WITH ITS 494STORE THRIFTY CHAIN AND BIMART A MEMBERSHIP DISCOUNT DRUG AND GENERAL MERCHANDISE CHAIN OF 41 STORES COMBINED SALES WOULD BE ABOUT 47 BILLION IN 1994 KMART SAID 9312030085 931203 LETTERS TO THE EDITOR NATIVISM CHARGE UNFAIR POINTING A FINGER OF NATIVISM AT EFFORTS TO BETTER CONTROL THE NATION'S BORDERS AS YOU DID IN AN OCT 27 ARTICLE IS HARDLY A CONSTRUCTIVE CONTRIBUTION TO UNDERSTANDING THE ISSUE WAS THE HOUSE OF REPRESENTATIVES ENGAGING IN NATIVISM WHEN IT EXTENDED THE QUALIFYING PERIOD FOR WELFARE BENEFITS FOR AGED BLIND OR DISABLED IMMIGRANTS THE ANSWER WOULD HAVE BEEN CLEAR IF YOU HAD MENTIONED THE FACT THAT IMMIGRANTS OTHER THAN REFUGEES ARE NOT SUPPOSED TO BE ADMITTED TO THE US AT ALL IF THEY ARE LIKELY TO BECOME A BURDEN ON THE US TAXPAYER THAT IS A TEST SPECIFIED IN THE LAW FOR GETTING AN IMMIGRATION VISA IS IT UNREASONABLE TO HAVE IMMIGRATION POLICIES THAT SCREEN OUT NEW IMMIGRANTS WHO LIKELY WOULD DEPEND ON PUBLIC WELFARE PROGRAMS OF COURSE NOT AND IF YOU AGREE THAT THIS ADMISSION BARRIER IS NOT UNREASONABLE THEN IT IS NONSENSE TO BLUSTER ABOUT A CHANGE IN THE ELIGIBILITY WAITING PERIOD FOR ONE OF THOSE WELFARE PROGRAMS 9312030084 931203 BUSINESS BRIEF MICRO BIOMEDICS INC PURCHASE OF CLARK SURGICAL FOR 155 MILLION COMPLETED MICRO BIOMEDICS INC PELHAM MANOR NY SAID IT COMPLETED THE ACQUISITION OF CLARK SURGICAL CORP FOR 155 MILLION IN CASH AND NOTES MICRO BIOMEDICS IS A DISTRIBUTOR OF MEDICAL SUPPLIES TO DOCTORS AND HOSPITALS THE COMPANY SAID CLARK BASED IN SYOSSET NY HAS REVENUE OF ABOUT 50 MILLION AT AN ANNUALIZED RATE CLARK IS A MEDICAL PRODUCTS SUPPLIER IN THE NEW YORK METROPOLITAN AREA AND IN SOUTH FLORIDA MICRO BIOMEDICS SAID THE ACQUISITION SHOULD BOOST FISCAL 1994 REVENUE TO MORE THAN 120 MILLION AND WOULD MAKE A POSITIVE CONTRIBUTION TO FISCAL 1994'S NET INCOME MICRO BIOMEDICS REPORTED NET INCOME OF 12 MILLION IN FISCAL 1992 ON REVENUE OF 616 MILLION 9312030083 931203 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY THIS COMPUTER COMPANY NAMED FOUR VICE PRESIDENTS ROBIN W STERNBERGH 47 YEARS OLD GENERAL MANAGER OF BUSINESS PROCESS REENGINEERING IBM US NICHOLAS J TEMPLE 46 PRESIDENT IBM UNITED KINGDOM JOHN W THOMPSON 44 GENERAL MANAGER OF MARKETING IBM US AND LAWRENCE A ZIMMERMAN 51 IBM CONTROLLER 9312030082 931203 BUSINESS BRIEF SEQUA CORP TALKS UNDER WAY FOR SALE OF PROFESSIONAL SERVICES UNIT SEQUA CORP IS NEGOTIATING TO SELL ITS ARC PROFESSIONAL SERVICES GROUP UNIT TO COMPUTER SCIENCES CORP EL SEGUNDO CALIF TERMS WEREN'T DISCLOSED THE COMPANIES SAID THEY EXPECT TO FINALIZE THE SALE IN THE NEXT FEW WEEKS AND HOPE TO CLOSE IT BY YEAR'S END ARC PROFESSIONAL SERVICES PROVIDES INFORMATION TECHNOLOGY AND PROFESSIONAL SERVICES PRIMARILY TO THE US GOVERNMENT COMPUTER SCIENCES A PROVIDER OF INFORMATION SERVICES AND TECHNICAL SUPPORT HAS 25 BILLION IN ANNUAL REVENUE SPLIT EVENLY BETWEEN GOVERNMENT AND COMMERCIAL MARKETS ARC PROFESSIONAL SERVICES WITH ABOUT 2000 EMPLOYEES AND 170 MILLION IN ANNUAL REVENUE ALSO PROVIDES TECHNICAL ASSISTANCE TO THE HEALTHCARE AND PHARMACEUTICAL INDUSTRY COMPUTER SCIENCES WITH ABOUT 27000 EMPLOYEES WORLDWIDE SAID IT DIDN'T EXPECT ANY SIGNIFICANT WORKFORCE REDUCTIONS FROM THE PROPOSED ACQUISITION NEW YORKBASED SEQUA HAD 1992 REVENUE OF 187 BILLION THE COMPANY WHICH ALSO HAS INTERESTS IN CHEMICALS AND AEROSPACE SAID IT WOULD USE PROCEEDS FROM A SALE TO PAY DOWN DEBT 9312030081 931203 ADVERTISING IN THE SAFESEX SOCIETY ADVERTISERS LOSE INHIBITIONS ABOUT HOW MUCH SEX IS SAFE BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL SUBLIMINAL THEY AREN'T IN THE AGE OF SAFE SEX SEXUAL REFERENCES IN ADVERTISING ARE INCREASINGLY BLATANT AND BEING TRIED BY A GROWING NUMBER OF ADVERTISERS FOR PERFUME AND JEANS SEX AND ADVERTISING HAVE LONG BEEN BEDFELLOWS BUT SOME UNLIKELY MARKETERS HAVE BEGUN SOME PRETTY STEAMY SEXUAL EXPERIMENTATION INCLUDING MAKERS OF GLOVES SCOTCH CARS EVEN WATCHES MAKE YOUR HUSBAND REALLY SHINE IN BED IS THE HEADLINE FOR A NEW ADVERTISEMENT FOR A TIMEX GLOWINTHEDARK WRISTWATCH THE AD GOES ON TO SUGGEST NOW YOUR HUBBY CAN EVEN USE HIS IRONMAN TRIATHLON BETWEEN THE SHEETS SAYS SUSIE WATSON ADVERTISING DIRECTOR OF TIMEX CORP WE'VE BEEN TAKING A MORE TONGUEINCHEEK APPROACH TO OUR TAKES A LICKING AND KEEPS ON TICKING' HERITAGE NOT TO BE OUTDONE BULOVA CORP IS ABOUT TO UNVEIL A CAMPAIGN FEATURING NUDE MALE AND FEMALE MODELS WITH THE SLOGAN I'D FEEL NAKED WITHOUT MY BULOVA IN MANY RESPECTS COMMERCIALS ARE SIMPLY CATCHING UP WITH TELEVISION TALK SHOWS AND MAGAZINE COVERS CONSEQUENTLY ADVERTISERS FEEL THAT THEY FACE LESS RISK OF ALIENATING SHOPPERS BY MOUNTING THEIR OWN NAKED APPEALS MARKETING EXPERTS SAY THE EXPLOSION OF SEXUAL IMAGERY ALSO IS A RESPONSE TO THE FEAR OF SEX THAT HAS ACCOMPANIED THE AIDS EPIDEMIC WHEN PEOPLE ARE IN A MODE OF ABSTINENCE WE TEND TO MAKE UP FOR THAT ABSTINENCE BY USING MORE OVERTLY SEXUAL KINDS OF IMAGES SAYS IRMA ZANDL PRESIDENT OF ZANDL GROUP A MARKETING CONSULTING FIRM IT IS SORT OF LOOK BUT DON'T TOUCH WE HAVE GOTTEN SO MUCH MORE OVERT ABOUT SO MANY THINGS GEORGE ROSENBAUM CHAIRMAN OF LEO J SHAPIRO & ASSOCIATES A MARKET RESEARCH FIRM IN CHICAGO SAYS SEX AS AN ATTENTION GETTER HAS LOST NONE OF ITS POWER AND IS PROBABLY GAINING IN POWER THE MORE CAUTIOUS AND RESPONSIBLE PEOPLE HAVE TO BE DOMINIC BRAND PRODUCT GROUP DIRECTOR FOR DEWAR'S SCOTCH AS THINGS GET MORE COMPETITIVE PEOPLE ARE PUSHING THE PARAMETERS FURTHER AND FURTHER WITH THE SALES OF SCOTCH SLUGGISH DEWAR'S RECENTLY PRODUCED WHAT MR BRAND CALLS ITS MOST RISQUE AD TO DATE THE AD WHICH FEATURES A LARGE CLOSEUP PHOTOGRAPH OF A PAIR OF BARE FEET JOKINGLY REFERS TO THE LEGENDARY LINK BETWEEN THE SIZE OF A MAN'S FOOT TO ANOTHER PART OF HIS ANATOMY THE AD WHICH IS CURRENTLY RUNNING IN OUT AND OTHER GAY MAGAZINES SAYS WHAT A GUY DRINKS TELL YOU MORE ABOUT HIM THAN HIS TIE HIS CAR AND YES EVEN THE SIZE OF HIS FEET LEO BURNETT CO DEWAR'S AD AGENCY SAYS THE AD HAS BEEN SO POPULAR IT PLANS TO EXPAND THE MEDIA SCHEDULE BEYOND GAY PUBLICATIONS TO SUCH MAGAZINES AS DETAILS AND ROLLING STONE HYUNDAI'S LATEST TELEVISION COMMERCIALS TAKE A SIMILAR APPROACH WITH SLY ANATOMICAL REFERENCES ABOUT MEN MUST BE OVERCOMPENSATING FOR A SHORTCOMING SAYS ONE WOMAN ABOUT THE DRIVER OF A LAMBORGHINI HE OBVIOUSLY HAS FEELINGS OF INADEQUACY SAYS HER FRIEND ABOUT THE PILOT OF A FERRARI TESTAROSSA THEN UP DRIVES THE OWNER OF MODEST LOOKING HYUNDAI I WONDER WHAT HE'S GOT UNDER THE HOOD PURRS ONE OF THE WOMEN CAROL MOOG A PSYCHOLOGIST AND AN ADVERTISING CONSULTANT IN BALA CYNWYD PA SAYS THE INCREASED USE OF SEXUAL HUMOR IN ADS IS A SIGN THAT SOCIETY IS COMING TO TERMS WITH ITS FEAR OF AIDS THE WAY YOU ACHIEVE A HEALTHY PERSPECTIVE ON HORROR IS HUMOR SHE SAYS WE ARE EVOLVING THROUGH THIS AS A CULTURE TO THE POINT WHERE THERE CAN BE SOME JOKES AGAIN THE USE OF MORE MARRIED COUPLES IN PROVOCATIVE ADS ALSO IS A RESPONSE TO THE FEAR OF AIDS A NEW CAMPAIGN FOR ISOTONER GLOVES FEATURES A GORGEOUS COUPLE LOCKED IN A TENDER EMBRACE THE MAN APPEARS TO BE UNCLOTHED AND THE WOMAN IS WEARING A SPAGHETTISTRAP NIGHTGOWN AND CONSPICUOUSLY A WEDDING RING PROTECT WHAT YOU CHERISH IS ISOTONER'S NEW SLOGAN DR MOOG SAYS THE USE OF THE CONCEPT OF PROTECTION IS SATURATED WITH MEANING THEY ARE DEFINITELY TALKING ABOUT CONDOMS SHE SAYS IT CHARGES THOSE GLOVES WITH BEING LIFESAVING IF SOMEBODY DIDN'T DO THAT DELIBERATELY THEIR UNCONSCIOUS WAS WORKING OVERTIME REPLIES AN ISOTONER SPOKESWOMAN I WANT TO EMPHATICALLY REITERATE THAT THE ADS ARE ABOUT RELATIONSHIPS AND COMMITMENT AND THAT SEXUAL IMAGERY IS NOT PART OF OUR CAMPAIGN STRATEGY SUCH IMAGES OF MARRIED COUPLES ARE A FAR CRY FROM THE DAYS WHEN TELEVISION SHOWED THEM SLEEPING IN TWIN BEDS AND ADVERTISERS OF MOST PRODUCTS AVOIDED THEM ALTOGETHER NOW EVEN PERFUME COMPANIES TRADITIONALLY AMONG THE RACIER ADVERTISERS ARE BEGINNING TO MAKE THE TRANSITION TO MONOGAMY IN THEIR ADS AN AD FOR HERRERA FOR MEN A COLOGNE IS AN ODE TO THE JOYS OF MARRIED SEX INCLUDING THE LINES MARRIAGE IS VERY EARTHY THERE'S MORE TO COOKING THAN FRYING EGGS THE MARITALROMANCE REFERENCE WAS A CONSCIOUS TWIST SAYS CRAIG MORTON DIRECTOR OF MARKETING AND ADVERTISING FOR COMPAR INC THE US DISTRIBUTOR OF THE COLOGNE IT IS SUGGESTING THAT ONE DOES NOT HAVE TO RISK YOUR LIFE IN SEX IT'S A RECOGNITION THAT WE LIVE IN TIMES WERE PEOPLE ARE VERY CAUTIOUS AND CONCERNED HERRERA IS COMPAR'S TOP SELLING FRAGRANCE BYPASSING ITS BESTSELLER OF THE 1980S PACO RABANNE PACO'S SUCCESS WAS BASED ON SEXY ADS FEATURING THE ADVENTURES OF A HANDSOME YOUNG HEDONIST SAYS MR MORTON THERE WAS A CASUALNESS TO HIS LIFESTYLE THAT PEOPLE WOULD NOT RESPOND WELL TO TODAY 9312030079 931203 HEALTH SCIENTISTS FIND GENE THAT CAUSES CANCERS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS HAVE DISCOVERED THAT AN INBORN DEFECT THAT IS FAIRLY COMMON IS AN UNDERLYING CAUSE OF SEVERAL MAJOR CANCERS A FINDING WITH FARREACHING IMPLICATIONS FOR CANCER DIAGNOSIS AND TREATMENT TWO SEPARATE RESEARCH TEAMS RACING ONE ANOTHER IN RECENT MONTHS SAY THEY SIMULTANEOUSLY IDENTIFIED THE PRECISE STRUCTURE AND MECHANISM OF A GENE THAT WHEN DEFECTIVE CAN TURN A HEALTHY CELL MALIGNANT THEIR FINDINGS LAY OUT THE MOST DETAILED PICTURE YET OF THE SEQUENCE OF EVENTS DEEP WITHIN A CELL THAT LEAD TO CANCER THE DISCOVERY OF THIS GENE AND ITS ROLE HAS GIVEN RESEARCHERS A FUNDAMENTALLY NEW WAY OF THINKING ABOUT CANCER DEVELOPMENT SAYS RICHARD KOLODNER A RESEARCHER AT DANAFARBER CANCER INSTITUTE WHO IS PART OF ONE OF THE TEAMS THAT TRACKED DOWN THE GENE THE GENE'S IDENTIFICATION IS THE MOST RECENT IN A SPATE OF DISCOVERIES COMING OUT OF THE FASTMOVING SCIENCE OF MAPPING PREVIOUSLY HIDDEN OR UNKNOWN GENES BUT SCIENTISTS INVOLVED IN THE RESEARCH SAY THAT WHAT IS ESPECIALLY STARTLING IS THAT PERHAPS AS MANY AS ONE IN 200 PEOPLE ARE BORN WITH THE FLAWED GENE WHICH CAN LEAD TO CANCERS OF THE COLON UTERUS AND OVARY THE CANCERS ACCOUNT FOR ALMOST 80000 DEATHS A YEAR IN THE US THIS IS A VERY HUGE ACHIEVEMENT SAYS FRANCIS COLLINS WHO HEADS THE FEDERAL HUMAN GENOME PROJECT WHICH FUNDS MAJOR GENE RESEARCH DR COLLINS SAYS THE GENE MAY BE RESPONSIBLE FOR THE MOST COMMON INHERITED SUSCEPTIBILITY TO DISEASE MOREOVER HE SAYS THERE'S NO DOUBT THIS RESEARCH IS GOING TO PRODUCE FASTER BETTER CANCER DETECTION AS WELL AS PROVIDING IMPORTANT CLUES FOR NEW WAYS OF TREATING THE CANCERS BUT TESTING PEOPLE FOR THE GENE IS EXPECTED TO PRODUCE ETHICAL AND LEGAL DILEMMAS PERHAPS CAUSING SOME GENE CARRIERS TO BE DENIED HEALTH INSURANCE ON THE BASIS OF THEIR NEWFOUND HEALTH RISK WHILE HAILING THE DISCOVERY AS A GREAT DAY FOR SCIENCE SECRETARY OF HEALTH AND HUMAN SERVICES DONNA SHALALA SAID IT DRAMATIZES THE NEED FOR UNIVERSAL INSURANCE COVERAGE THAT DOESN'T PENALIZE PEOPLE WITH PREEXISTING HEALTH CONDITIONS THE NEW RESEARCH FINDINGS COME JUST SIX MONTHS AFTER SCIENTISTS AT JOHNS HOPKINS UNIVERSITY IN BALTIMORE SAID THEY HAD PINPOINTED THE APPROXIMATE LOCATION OF A GENE THAT CAUSES THE INHERITANCE OF A COMMON TYPE OF COLON CANCER AT THE TIME THE HOPKINS RESEARCHERS SAID THEY BELIEVED THE GENE SOMEHOW CONTROLLED CELL GROWTH WHEN THE GENE WAS FLAWED THE SCIENTISTS BELIEVED NORMALLY PLACID CELLS GREW MADLY INTO A TUMOR IMMEDIATELY RESEARCHERS SET ABOUT TO DEVELOP A BLOOD TEST TO DETECT THE GENE'S PRESENCE IN PEOPLE WHOSE FAMILIES HAVE A HISTORY OF COLON CANCER AS SOON AS WE HAVE A TEST PEOPLE IN THESE FAMILIES CAN TELL IF THEY ARE AT RISK OR NOT SAYS BERT VOGELSTEIN A HOPKINS SCIENTIST WHO HAS PIONEERED THE DISCOVERY OF GENES INVOLVED IN CANCER DR VOGELSTEIN SAYS THAT SINCE 90 OR SO OF THOSE WITH THE GENE ARE BOUND TO GET ONE OF SEVERAL CANCERS THOSE WHO KNOW FOR CERTAIN THEY HAVE THE GENE CAN UNDERGO PERIODIC TESTING TO DETECT CANCER AT ITS EARLIEST STAGE WHEN TREATMENT IS MOST SUCCESSFUL EVEN SO DR VOGELSTEIN COULD ONLY GUESS LAST SPRING AT HOW THE GENE WORKED HE SPECULATED THAT IT MIGHT TAKE TWO YEARS TO IDENTIFY THE GENE AND YEARS LONGER TO FIGURE OUT ITS PRECISE ROLE HOWEVER AT THE SAME TIME THE HOPKINS LABORATORY AND ITS COLLABORATORS IN FINLAND HAD UNCOVERED A STRANGE PHENOMENON THAT SOON PROVIDED A CRITICAL CLUE IN THE UNEXPECTEDLY QUICK UNLOCKING OF THE GENE'S SECRETS THE HOPKINS LABORATORY FOUND THAT LONG STRETCHES OF DNA OR GENETIC MATERIAL WITHIN THE TUMOR CELLS WERE REPEATED AS IF SOMEONE HAD KEPT A FINGER PRESSED DOWN ON A LETTER ON A COMPUTER KEYBOARD WHEN A REPORT OF THE STRANGE DNA REPEATS WAS PUBLISHED IN EARLY MAY IT ALERTED SCIENTISTS AROUND THE WORLD WHO HAD BEEN STUDYING SIMILAR DNA REPEATS IN THE GENES OF BACTERIA AND YEAST MICROBES AS SOON AS WE SAW THE PAPER WE DECIDED TO GO AFTER THE GENE SAYS RICHARD FISHEL A PROFESSOR OF MICROBIOLOGY AND MOLECULAR GENETICS AT THE UNIVERSITY OF VERMONT I KNEW IMMEDIATELY I WASN'T GOING TO DO A LOT OF SOCIALIZING FOR A WHILE SAYS DANAFARBER'S DR KOLODNER WHO UNDERTOOK A COLLABORATION WITH DR FISHEL THE TWO RESEARCHERS AS WELL AS OTHERS HAD BEEN STUDYING A PROTEIN THAT IN BACTERIA AND YEAST NORMALLY ACTS LIKE A TEXT EDITOR UNCOVERING AND CORRECTING STRETCHES OF DNA THAT ARE REPRODUCED INCORRECTLY WHEN CELLS DIVIDE DR KOLODNER HAD FOUND A GENE THAT PRODUCED THE PROTEIN IN YEAST AND HE HAD SHOWED THAT WHEN THE GENE WAS MUTATED IT CAUSED THE SAME KIND OF DNA REPETITIONS THAT THE HOPKINS TEAM HAD SEEN IN THE COLON CANCER TUMORS AT THE SAME TIME DR VOGELSTEIN SAYS HE WAS ALERTED TO THE EXISTENCE OF THE SIMILAR DNA REPEATS KNOWN TO EXIST IN MICROBES BY SEVERAL RESEARCHERS INCLUDING PAUL MODRICH AT DUKE UNIVERSITY WHO HAS BEEN STUDYING THE EFFECTS OF THE MUTATED REPAIR GENE IN BACTERIA WHAT FOLLOWED WAS A SIXMONTH RACE TO DETERMINE IF THE COLON CANCER GENE WAS INDEED A HUMAN VERSION OF THE MICROBIAL GENE IN A RESEARCH PAPER PUBLISHED TODAY IN THE JOURNAL CELL BY DRS KOLODNER AND FISHEL AND IN ANOTHER PAPER TO BE RELEASED IN CELL NEXT WEEK BY THE HOPKINS TEAM THE RESEARCHERS REPORT THAT THE STRUCTURE AND FUNCTION OF THE MICROBIAL AND HUMAN GENES ARE NEARLY IDENTICAL MOREOVER PRELIMINARY RESEARCH SUGGESTS THAT MOST FORMS OF COLON CANCER INCLUDING THOSE THAT AREN'T INHERITED OCCUR WHEN THIS SAME GENE SOMEHOW BECOMES DAMAGED IN A CELL PERHAPS FROM EXPOSURE TO AN ENVIRONMENTAL FACTOR OR A RANDOM MISTAKE IN DNA DIVISION IN CONTRAST WITH MANY OTHER RECENT HUMAN GENE DISCOVERIES SCIENTISTS HAVE SPENT YEARS OF BASIC RESEARCH WORKING OUT THE BIOLOGY OF THE DNA REPAIR GENES IN MICROBES DR KOLODNER SAYS WE HAVE EVERY REASON TO BELIEVE THE MACHINERY IN HUMANS IS THE SAME IF SO WE HAVE WITHIN OUR GRASP A BASIC UNDERSTANDING OF HOW A VERY COMMON CANCER ARISES AND PERHAPS HOW TO INTERVENE IN THAT PROCESS WITH DRUGS 9312030077 931203 REVIEW & OUTLOOK EDITORIAL A CHANGE IN TIME YOU'VE GOT TO SYMPATHIZE WITH MARTIN DAVIS FOUR YEARS AGO HIS PARAMOUNT COMMUNICATIONS OFFERED TOP DOLLAR FOR TIME INC BUT THE DELAWARE COURTS LET TIME'S DIRECTORS SHRUG OFF HIS OFFER AND MERGE WITH WARNER COMMUNICATIONS AS THE BETTER STRATEGIC PARTNER NOW MR DAVIS WANTS TO CONSUMMATE HIS OWN STRATEGIC PLAN BY MERGING WITH VIACOM BUT THE DELAWARE COURT SAYS HE HAS TO ENTERTAIN A RIVAL BID WHAT'S MORE MR DAVIS HAS BEEN A GOOD STEWARD FORGING A HEALTHY PARAMOUNT FROM THE MESS HE INHERITED IN GULF & WESTERN THAT IS HE CLEANED UP CHARLES BLUHDORN'S CONGLOMERATE BUT KEEPS RUNNING INTO SHOWBOATS LOSING LAST TIME TO STEVE ROSS AND THIS TIME FACING HIS OLD NEMESIS BARRY DILLER AND HIS SHOPPING CHANNEL QVC FOR ALL THAT IN TERMS OF HOW MERGERS SHOULD BE RUN MR DAVIS WAS RIGHT THE FIRST TIME WE HOPE THE DELAWARE COURTS GO THROUGH WITH RECTIFYING THEIR TIMEWARNER GAFFE IN THE WORLD MADE BY TIME DIRECTORS WERE AWARDED AN OPEN TICKET TO DECIDE WHICH TAKEOVER BIDS IF ANY STOCKHOLDERS MAY ACCEPT TIME'S OWNERS WEREN'T ALLOWED TO AVAIL THEMSELVES OF MR DAVIS'S 200PERSHARE OFFER AND THEIR STOCK HAS LANGUISHED BELOW 150 EVER SINCE YET OUT OF THEIR HIDES CAME SOME 680 MILLION IN PAYOLA TO MR ROSS AND OTHER TIMEWARNER BIGGIES WHILE MR DAVIS'S PERSONAL STAKE IS NOT SO LAVISH HE CAME BACK THIS YEAR WITH A STRATEGIC ALLIANCE THAT WAS SUPPOSED TO MEET THE TIME TEST LAST WEEK IN DELAWARE CHANCERY COURT VICE CHANCELLOR JACK JACOBS RULED THAT TIME DIDN'T APPLY WHEN AN AUCTION IS UNDER WAY AND THAT MR DAVIS HAD IN EFFECT PUT HIS COMPANY UP FOR SALE IF THE RULING STANDS WHEN THE DELAWARE SUPREME COURT HEARS THE CASE NEXT THURSDAY PARAMOUNT'S BOARD WILL BE HARDPRESSED TO ACCEPT ANYTHING BUT THE BEST OFFER TECHNICALLY CHANCELLOR JACOBS'S OPINION RESTS ON THE CONCLUSION THAT THE PARAMOUNTVIACOM MERGER WAS A SALE AS OPPOSED TO SOME OTHER ANIMAL HE POINTED OUT THAT THE DEAL WOULD DELIVER A CONTROLLING INTEREST IN PARAMOUNT TO VIACOM FOUNDER SUMNER REDSTONE AN OLD FRIEND OF MR DAVIS THIS THE CHANCELLOR SAID WOULD FOREVER DEPRIVE THE CURRENT OWNERS OF AN OPPORTUNITY TO COLLECT A PREMIUM FOR GIVING UP CONTROL THOSE OF US WHO THINK A PUBLIC CORPORATION IS FOR SALE EVERY DAY MIGHT ALSO ASK IF PARAMOUNT WASN'T ON THE BLOCK WHY DID VIACOM RAISE ITS BID AFTER QVC CAME ON THE SCENE AND WITHOUT A SALE HOW WOULD PARAMOUNT'S OWNERS EVER HAVE FOUND OUT THEY WERE BEING LOWBALLED TO US SIGNIFICANTLY PARAMOUNT'S SHARE PRICE ROSE ON THE JACOBS DECISION THE FORSALE NOTFORSALE DISTINCTION IS OF A PIECE WITH THE GENERAL NUTTINESS OF THE TIME LINE OF JURISPRUDENCE CHANCELLOR JACOBS SPENDS OCEANS OF INK TRYING TO DIVINE WHAT PARAMOUNT'S DIRECTORS WERE THINKING WHEN THEY BRUSHED OFF QVC'S BID IN EFFECT YOU'VE GOT ONE JUDGE TRYING TO BE SMARTER THAN 15 DIRECTORS WHO ARE TRYING TO BE SMARTER THAN ALL THE WORLD'S EQUITY INVESTORS WHILE THE JUDGE HAS BREACHED A HOLE IN TIME IT'S A MESSY ONE THE JUST SAY NO DEFENSE STILL SURVIVES FOR CEOS WHO STEER CLEAR OF INITIATING ANY MERGER ACTIVITY AT ALL OR WHO PURSUE ONLY FRIENDLY DEALS WHERE CONTROL WOULDN'T PASS TO A DOMINANT SHAREHOLDER SUCH AS MR REDSTONE THAT WOULD MEAN IBM COULD MAKE A FRIENDLY PASS AT A WIDELY HELD COMPANY WITHOUT TRIGGERING A BIDDING WAR BUT MICROSOFT COULDN'T IT WOULD BE BETTER IF DELAWARE COURTS SIMPLY LOOKED AT THE HISTORY OF THE TIME SHARE PRICE AND OVERTURNED THE CASE ENTIRELY YET THE JACOBS RULING DOES BEGIN TO MOVE US BACK TO A WORLD WHERE THE OWNERS OF CORPORATE PROPERTY HAVE SOME RIGHTS TIME IN EFFECT HELD THAT MANAGERS AND DIRECTORS ALWAYS KNOW BEST AND OWNERS WOULD LOUSE UP THEIR BRILLIANT BUSINESS STRATEGIES IF ALLOWED TO SELL THEIR COMPANIES TO SOMEBODY WHO MIGHT FIRE THE INCUMBENT GENIUSES NOBODY HAS A CORNER ON CLAIRVOYANCE ABOUT SOMETHING AS FOGGY AS THE MULTIMEDIA FUTURE OR AS IMPONDERABLE AS WHETHER A VIACOMPARAMOUNT MATCH IS WORTH MORE THAN MR DILLER'S WUNDERKIND REPUTATION TO SETTLE THIS MR DAVIS AND MR DILLER CAN PIT THEIR VISIONS IN THE MARKETPLACE AND SEE WHICH ONE INVESTORS WILL BACK WITH THE RICHEST POT SINCE MR DAVIS WAS DONE WRONG ONCE WE'LL ROOT FOR HIM BUT ONLY AFTER WE ROOT FOR SHAREHOLDERS HOSTILE TAKEOVERS ARE THE MARKET'S SOLUTION TO WHAT WOULD OTHERWISE BE A MARKET FAILURE WHERE OWNERSHIP IS WIDELY DISPERSED TAKEOVERS KEEP MANAGERS FOCUSED ON DOING A JOB FOR SHAREHOLDERS RATHER THAN INDULGING A FANCY FOR JET PLANES AND OTHER TRAPPINGS WE'RE STILL BENEFITING FROM THE SCARE THAT THE ICAHNS AND MILKENS AND PICKENSES PUT INTO AMERICA'S CORPORATE ROYALTY IN THE 1980S BUT IT WON'T LAST IF TIME CONTINUES TO SMOTHER THE MARKET FOR CORPORATE CONTROL DELAWARE HAS A VALUABLE FRANCHISE TO PROTECT AND CYNICS RECKONED THAT TIME WAS AIMED AT SUCKING UP TO CEOS NOW THE PENDULUM IS SWINGING THE OTHER WAY SHAREHOLDERS ARE TAKING CHARGE AND THEY HAVEN'T FORGOTTEN THE CALLOUS TREATMENT METED OUT TO TIME'S OWNERS WILL THE DELAWARE SUPREME COURT NOW REVOKE THE RIGHT OF PARAMOUNT'S OWNERS TO GET THE BEST PRICE 9312030076 931203 BUSINESS BRIEF ZALE CORP JEWELRY CHAIN'S SHARES FALL ON CUT IN PROFIT PROJECTION ZALE CORP SHARES FELL AFTER THE JEWELRY CHAIN SAID IT DOESN'T EXPECT TO MEET EARLIER PROJECTIONS OF 61 MILLION TO 66 MILLION IN OPERATING EARNINGS FOR THE FISCAL YEAR ENDING NEXT MARCH AFTER A HALT DUE TO TRADING IMBALANCES EARLY YESTERDAY AFTERNOON ZALE CLOSED DOWN 1 OR 93 AT 975 IN NASDAQ STOCK MARKET TRADING THE DALLASBASED COMPANY CITED WEAK SALES OVER THANKSGIVING WEEKEND BUT DIDN'T SAY HOW FAR SHORT OF THE PROJECTIONS IT EXPECTS TO FALL IT SAID ITS ACTUAL EARNINGS WILL DEPEND ON SALES BETWEEN NOW AND CHRISTMAS THE HOLIDAY SEASON HISTORICALLY ACCOUNTS FOR ABOUT 30 OF ZALE'S ANNUAL SALES ZALE SAID SALES FELL ABOUT 5 OVER THE THANKSGIVING WEEKEND IN STORES OPEN A YEAR OR MORE ANDREAS LUDWIG ACTING CHIEF EXECUTIVE SAID THAT WHILE SALES WERE GOOD AT THE CHAIN'S FINE JEWELRY GUILD AND GORDON DIVISIONS WHICH AIM AT THE HIGH AND LOW ENDS OF THE MARKET RESPECTIVELY THE FLAGSHIP ZALE DIVISION DID POORLY ZALE HAS BEEN TRYING TO ATTRACT CUSTOMERS THROUGH A 35 MILLION HOLIDAY ADVERTISING CAMPAIGN ITS LARGEST IN YEARS 9312030075 931203 US EC BELIEVE DEAL IS IN SIGHT ON WORLD TRADE NEGOTIATORS INDICATE ACCORD ON OUTSTANDING ISSUES COULD BE SET MONDAY BY BOB DAVIS AND JULIE WOLF STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS US AND EUROPEAN COMMUNITY NEGOTIATORS BELIEVE THEY CAN STRIKE A DEAL ON WORLD TRADE TALKS MONDAY DESPITE THE FAILURE TO RESOLVE THEIR DIFFERENCES IN DISCUSSIONS THIS WEEK US TRADE REPRESENTATIVE MICKEY KANTOR SAID HE WOULD CONSULT WITH LAWMAKERS BEFORE THE NEXT ROUND OF TALKS AND EC TRADE MINISTER LEON BRITTAN SAID HE WOULD DO THE SAME WITH MEMBER EC COUNTRIES THEIR COMMENTS INDICATE THAT BOTH SIDES HAD MADE SUBSTANTIVE PROGRESS IN THEIR TWO DAYS OF TALKS HERE AND WERE LOOKING FOR FINAL APPROVAL TO CUT A DEAL I HOPE WE CAN RESOLVE THE OUTSTANDING ISSUES ON MONDAY SAID SIR LEON AS HE AND MR KANTOR PLAN TO HUDDLE AGAIN IN BRUSSELS AFTER THE WEEKEND THE EC COUNCIL WOULD ALSO HOLD A MEETING AFTER THOSE TALKS SIR LEON SAID SUGGESTING HE WOULD HAVE A FINAL DEAL THAT COULD BE RATIFIED BY THE MEMBER STATES SIGNIFICANTLY EC FOREIGN MINISTERS LAST NIGHT BACKED SIR LEON'S EFFORTS AND INSTRUCTED HIM TO CONTINUE NEGOTIATIONS WITH THE AIM OF REACHING AN ECUS ACCORD ON MONDAY SEVERAL EC COUNTRIES SAID THEY WERE ENCOURAGED BY FRANCE'S LOWKEY REACTION TO THE PROGRESS MADE DURING THE NEGOTIATIONS BETWEEN SIR LEON AND MR KANTOR THE MINISTERS WERE BRIEFED LAST NIGHT BY SIR LEON SPEAKING TO REPORTERS AFTER THE BRIEFING FRENCH FOREIGN MINISTER ALAIN JUPPE SAID WE HAVE COME OUT OF THE ICE AGE THAT HAS CHARACTERIZED ECUS RELATIONS BUT THE BASIS FOR A DEAL HASN'T BEEN FINALIZED ON SEVERAL KEY POINTS INCLUDING AGRICULTURE TRADE IN MOVIES AND TELEVISION PROGRAMS AND NEW WORLDTRADING RULES IN SOME WAYS THOUGH THE TWO DAYS OF TALKS WERE A FAILURE US NEGOTIATORS HAD EARLIER SAID THEY THOUGHT THEY COULD AT LEAST REACH AN AGREEMENT ON INDUSTRIAL TARIFF CUTS THAT WOULD HAVE GIVEN SIGNIFICANT MOMENTUM TO THE TALKS HELD UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA SIR LEON AND MR KANTOR SAID THEY HAD MADE PROGRESS IN THAT AREA BUT DIDN'T PROVIDE DETAILS ONE OF THE STICKIEST PARTS OF THE TARIFF CONTROVERSY INVOLVES THE US EFFORT TO GET THE EC TO REDUCE ITS 14 TARIFFS ON SEMICONDUCTORS TO ABOUT 7 THE EC ALSO IS PRESSING THE US TO CUTS ITS TARIFFS ON TEXTILES ROUGHLY IN HALF DEPENDING ON THE OUTCOME OF THOSE NEGOTIATIONS EITHER THE US SEMICONDUCTOR OR TEXTILE INDUSTRY BOTH POTENT LOBBYING FORCES COULD OPPOSE A TRADE PACT IN CONGRESS THE AGRICULTURAL DISPUTE IS EVEN TOUGHER LAST YEAR THE US AND EC HAD AGREED THAT EUROPE WOULD CUT ITS SUBSIDIZED FARM EXPORTS BY 21 OVER SIX YEARS BUT FRANCE HAS BEEN CALLING FOR A MODIFICATION OF THE TERMS THE TRADEOFFS INVOLVED IN A POSSIBLE DEAL WERE VISIBLE DESPITE THE BEST EFFORTS OF THE NEGOTIATORS TO MASK THEM DURING A NEWS CONFERENCE BEFORE THE TALKS BEGAN MR KANTOR SAID THE US MIGHT AGREE TO SOME CHANGES IN THE RATE AND TIMING OF THE EXPORTSUBSIDY CUTS AT THE NEWS CONFERENCE HERE AGRICULTURE SECRETARY MIKE ESPY SAID THE US WAS LOOKING FOR INCREASED ACCESS TO EUROPEAN MARKETS IN CEREAL BEEF MEAT AND MILK SO A DEAL CONSISTING OF SOME EASING OF THE PACE OF EXPORTSUBSIDY CUTS IN EXCHANGE FOR MORELIBERAL ACCESS TO THE EUROPEAN AGRICULTURAL MARKET LOOKS LIKELY EC TRADE MINISTER RENE STEICHEN SAID THE US AND EC HAD THE OUTLINE OF AN AGREEMENT BUT WOULDN'T PROVIDE ANY DETAILS MR JUPPE SAID THE US MADE SIGNIFICANT CONCESSIONS ON THE ISSUE OF ACCESS TO THE EC MARKET BY ACCEPTING EUROPE'S DEMAND THAT THE LEVEL OF ACCESS BE MEASURED OVER A RANGE OF ITEMS NOT PRODUCTBYPRODUCT THIS ALLOWS THE EC TO GIVE LESSGENEROUS TREATMENT TO PRODUCTS SUCH AS CEREALS WHERE THE COMMUNITY HAS A HUGE SURPLUS THE TWO TRADING PARTNERS ARE FURTHEST APART ON AUDIOVISUAL ISSUES AND IF THEY CAN'T REACH AN AGREEMENT THERE BOTH THE US AND FRANCE HAVE SAID THEY WON'T AGREE TO A BROADER DEAL CURRENTLY COUNTRIES IN THE EC REQUIRE THAT A LARGE PORTION OF THE TELEVISION SHOWS AND MOVIES SHOWN IN THEATERS BE MADE IN EUROPE THAT'S PARTICULARLY TRUE IN FRANCE WHERE GOVERNMENT AFTER GOVERNMENT HAS WARNED OF US CULTURAL IMPERIALISM ONE WAY AROUND THE IMPASSE WOULD BE TO FREEZE THE QUOTA SYSTEM AT THE CURRENT PERCENTAGE AND EXPECT TECHNOLOGY TO DO THE REST WITH SATELLITE BROADCAST TELEVISION FOR INSTANCE THERE WOULD BE A NEED FOR SO MUCH PROGRAMMING THAT THE QUOTAS COULD BECOME IRRELEVANT BUT IT'S FAR FROM CLEAR THAT THIS WOULD SATISFY EITHER HOLLYWOOD OR PARIS A QUICK SETTLEMENT OF TRADE ISSUES BETWEEN THE US AND EC IS CRUCIAL TO GET A DEAL IN GATT TALKS WHICH HAVE HOVERED NEAR DEATH FOR SEVEN YEARS AND WHICH FACE A CONGRESSIONAL DEADLINE OF DEC 15 AFTER A USEC PACT THE TWO SIDES WOULD HAVE TO SELL THE DEAL TO THE 103 OTHER GATT MEMBERS MANY OF WHICH ARE DISSATISFIED WITH SEPARATE US POSITIONS ON TEXTILES AND DUMPING OF IMPORTS IN WHICH GOODS ARE SOLD IN FOREIGN MARKETS AT UNFAIRLY LOW PRICES MR KANTOR CALLED ON JAPAN AND OTHER NATIONS IN ASIA TO COME FORWARD WITH THEIR BEST OFFERS IN ORDER TO EASE THE USEC IMPASSE AND PROD THE GATT TALKS TO A CONCLUSION IF A DEAL IS STRUCK ON MONDAY THE US AND EC WOULD THEN PRESS JAPAN TO MAKE FURTHER REDUCTIONS OF INDUSTRIAL TARIFFS IN THE US MEANWHILE THERE WAS MOUNTING PRESSURE TO INFLUENCE THE TRADE TALKS IN ITS FINAL DAYS LESLIE SAMUELS ASSISTANT TREASURY SECRETARY FOR TAX POLICY SAID THE US HAS A FUNDAMENTAL PROBLEM WITH A DRAFT PROPOSAL INVOLVING EQUAL NATIONAL TREATMENT ON THE TAXATION OF INCOME OF FOREIGN CORPORATIONS AND INDIVIDUALS MR SAMUELS SAID HE WILL PRESENT A NEW PROPOSAL TO GATT NEGOTIATORS NEXT WEEK TO CLARIFY LANGUAGE THAT HE SAYS CONFLICTS WITH US TAX LAWS AND EXISTING BILATERAL TREATIES THE ISSUE ALBEIT A SIDE ONE HAS ESCALATED INTO A HIGHPROFILE DISPUTE BETWEEN THE EUROPEANS AND THE US WHICH IS RAISING IT WITHOUT MUCH VISIBLE SUPPORT FROM OTHER COUNTRIES THE US ARGUES THAT IT WOULDN'T USE TAX LAWS TO INHIBIT TRADE BUT OTHER COUNTRIES CONTEND THAT SUCH A PLEDGE ISN'T ENOUGH AND THAT EXTRA PROTECTION NEEDS TO BE INCLUDED IN THE WORLD TRADE AGREEMENT IN AN UNUSUAL POLITICAL ALLIANCE ON CAPITOL HILL SENATE MINORITY LEADER BOB DOLE R KAN AND HOUSE MAJORITY LEADER DICK GEPHARDT D MO FORMED AN ADVISORY GROUP OF 11 CORPORATE CHIEF EXECUTIVES TO PUT PRESSURE ON THE WORLD TRADE TALKS SEN DOLE AND REP GEPHARDT SAID THAT FOR ONE THING THE GROUP WOULD SEEK TO MAKE SURE US TRADE LAWS AREN'T WEAKENED BY THE GATT NEGOTIATIONS SEN MAX BAUCUS D MONT CHAIRMAN OF THE SENATE TRADE SUBCOMMITTEE DISPATCHED A LETTER TO PRESIDENT CLINTON WARNING THAT GATT TALKS SHOULDN'T WEAKEN SOCALLED SECTION 301 OF US TRADE LAW WHICH ALLOWS THE US TO IMPOSE SANCTIONS AS A WAY TO RETALIATE AGAINST CLOSED MARKETS HE SAID GATT TRADE LEGISLATION WOULD BE DEAD ON ARRIVAL IN CONGRESS IF IT WEAKENS US TRADE LAW ASRA Q NOMANI IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9312030074 931203 BUSINESS BRIEF CAPITAL CITIES/ABC INC COMPANY PAYS 693 MILLION TO BUY BACK BLOCK OF SHARES CAPITAL CITIES/ABC INC NEW YORK SAID IT ACQUIRED 11 MILLION OF ITS SHARES FROM BERKSHIRE HATHAWAY INC AND OTHER INVESTORS UNDER A BUYBACK PLAN AT A COST OF ABOUT 693 MILLION CAPITAL CITIES HAD OFFERED TO REPURCHASE TWO MILLION SHARES IN A DUTCH AUCTION IN WHICH SELLERS SET THE PRICES THEY WILL ACCEPT AT A PRICE RANGING FROM 590 A SHARE TO 630 A SHARE AS REPORTED WARREN E BUFFETT WHO CONTROLS BERKSHIRE AND IS A CAPITAL CITIES DIRECTOR HAD STRUCK AN ALL OR NOTHING DEAL TO SELL ONE MILLION CAPITAL CITIES SHARES BACK TO THE COMPANY BERKSHIRE ORIGINALLY ACQUIRED THE SHARES AT 17250 A SHARE IN JANUARY 1986 ONLY 100000 ADDITIONAL SHARES WERE TENDERED BY OTHER INVESTORS CAPITAL CITIES SHARES WERE TRADING ABOVE THE 630 TOP PRICE IN THE DUTCH AUCTION OFFER WHEN IT EXPIRED WEDNESDAY CAPITAL CITIES SHARES WERE QUOTED AT 630 YESTERDAY DOWN 750 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AFTER THE TRANSACTION BERKSHIRE WILL OWN TWO MILLION SHARES OR ABOUT 13 OF THE 154 MILLION CAPITAL CITIES SHARES THAT WILL BE OUTSTANDING 9312030073 931203 POTOMAC WATCH CLINTON ENDORSES DECADE OF GREED IN JAPAN BY PAUL A GIGOT THE CLINTON PRESIDENCY HAS BEEN FULL OF POLITICAL WONDERS BUT THE MOST WONDERFUL MAY BE THIS BILL CLINTON TURNS OUT TO BE A CLOSET SUPPLYSIDER AT LEAST OVERSEAS FEW HERE WANT TO ADMIT THIS ON THE RECORD BUT AS THE CLINTON WHITE HOUSE AND TREASURY HAVE CONFRONTED THE WORST JAPANESE ECONOMIC SLUMP IN 40 YEARS THEY HAVE QUIETLY TURNED IN DESPERATION TO PLEASE KEEP THIS TO A WHISPER REAGANOMICS RUDI DORNBUSCH AN MIT PROFESSOR WITH CLOSE CLINTON CONNECTIONS WRITES IN BUSINESS WEEK THAT THE REAGAN TAX CUTS GAVE THE US A DECADE OF SUSTAINED GROWTH JAPAN SHOULD DIG INTO ITS DEEP POCKETS TO FINANCE TAX CUTS ON AN AMBITIOUS SCALE TREASURY SECRETARY LLOYD BENTSEN HAS PUBLICLY URGED THE JAPANESE TO CUT INCOME TAXES TO RAISE THEIR STANDARD OF LIVING ANOTHER DEMOCRATIC ECONOMIST WHO HAS DETAILED KNOWLEDGE OF WHAT THE CLINTON TREASURY IS TELLING THE JAPANESE EXPLAINS THE POLICY THIS WAY THE BASIC FACT IS THAT HERE'S ONE COUNTRY WHERE THE WALL STREET JOURNAL EDITORIAL PAGE VIEW OF THE WORLD IS UNAMBIGUOUSLY CORRECT JAPAN NEEDS A MASSIVE INCOME TAX CUT DOES THIS INCLUDE A CUT EVEN FOR THE GULP RICH ACROSS THE BOARD THEY HAVE HIGH MARGINAL RATES REPLIES THIS COUNSELOR TO MR BENTSEN CITING JAPAN'S 65 TOP TAX RATE AND IT SHOULD NOT BE OFFSET WITH NEW CONSUMPTION TAXES A REFERENCE TO THE FAVORITE RUSE OF THE DEFICIT FANATICS IN TOKYO'S MINISTRY OF FINANCE LET'S HOPE NO ONE REPORTS ANY OF THIS TO JAMES CARVILLE THIS NOSTALGIA FOR THE GREED DECADE IS JUST ONE OF THE IRONIES TO FLOW FROM THE OTHERWISE WORRISOME ECONOMIC TROUBLES IN JAPAN IN 1986 HARVARD SOCIOLOGY PROF EZRA VOGEL WROTE IN FOREIGN AFFAIRS THAT FUTURE HISTORIANS MAY WELL MARK THE MID1980S AS THE TIME WHEN JAPAN SURPASSED THE UNITED STATES TO BECOME THE WORLD'S DOMINANT ECONOMIC POWER A PASSEL OF PUNDITS AND ERSATZ ECONOMISTS THE CLYDE PRESTOWITZJAMES FALLOWSPAT BUCHANAN NEXUS BUILT CAREERS AND AGENDAS AROUND THE THEME OF JAPAN AS NUMBER ONE MAYBE NOW THESE REVISIONISTS NEED REVISING FOR JAPAN HAS BEEN SUFFERING ITS WORST SLUMP SINCE WORLD WAR II RETAIL SALES HAVE FALLEN FOR A YEAR AND A HALF REALESTATE PRICES IN TOKYO AND OSAKA ARE DOWN 40 TO 60 FROM THEIR PEAKS THE TOKYO STOCK MARKET WHICH PROVIDES BALLAST FOR BANK BALANCE SHEETS HAS TAKEN ANOTHER BIG TUMBLE JAPAN'S ONCE MAJESTIC CORPORATIONS ARE ALSO FEELING THE PAIN NEC THE IBM OF JAPAN HAS HAD ITS PROFITS POUNDED BY MORE NIMBLE FOREIGNERS NOT BY SOUTH KOREANS BUT BY YANKEE DISCOUNTERS COMPAQ AND DELL INTEL CORP WHICH LIKES TO WHINE ABOUT JAPAN INC HAS NOW SURPASSED NEC AS THE WORLD'S LARGEST MAKER OF COMPUTER CHIPS WHILE JAPAN'S JOBLESS RATE REMAINS BELOW 3 THE LONG RECESSION HAS UNDERMINED FAITH IN LIFETIME EMPLOYMENT SOME AMERICANS MAY BE TEMPTED TO LET SCHADENFREUDE FLOW LIKE SAKE IN RESPONSE LET THE JAPANESE SUFFER FOR A CHANGE BUT WISER HEADS KNOW A STRUGGLING JAPAN IS FAR MORE DANGEROUS THAN A PROSPEROUS ONE AMERICAN FEAR OF JAPAN FASHIONED INTO NEOMERCANTILISM IS ALREADY PARTLY TO BLAME FOR THE CURRENT MESS JAPAN'S TROUBLES WERE ALREADY OBVIOUS WHEN MR CLINTON RODE INTO OFFICE AFTER ALL BUT MANY CLINTONITES NOTABLY WHITE HOUSE ECONOMIST LAURA TYSON ARRIVED WITH THE SAME JAPAN PHOBIA AS THE REVISIONISTS THEIR MAIN WORRY WASN'T GROWTH BUT THE US TRADE DEFICIT WITH JAPAN SO THEY QUICKLY TURNED TO THAT OLDEST OF BEGGARTHYNEIGHBOR POLICIES DEVALUATION TO BOOST US EXPORTS THEY MANAGED TO TALK UP THE YEN FROM 125 OR SO TO THE DOLLAR TO A POSTWAR HIGH OF 101 NOW DOWN TO ABOUT 109 THIS ENDAKA OR YEN SHOCK HAS MADE IT ALL THE MORE DIFFICULT FOR JAPAN TO SNAP OUT OF ITS FUNK JAPANESE STEELMAKERS WERE SELLING WELL IN CHINA FOR EXAMPLE UNTIL THE SOARING YEN LET KOREANS WHOSE WON IS PEGGED TO THE DOLLAR UNDERBID THEM JOHN MAKIN OF THE AMERICAN ENTERPRISE INSTITUTE NOTES THAT SUPERYEN HAS PUNISHED JAPAN'S EFFICIENT EXPORTERS THEN ITS BUREAUCRATS HAVE TRIED TO COMPENSATE BY HEEDING US ADVICE AND SUBSIDIZING INEFFICIENT PUBLIC WORKS SO IN EFFECT THE CLINTONISTAS ARE NOW RECOMMENDING TAX CUTS AS AN ANTIDOTE TO THEIR OWN PREVIOUS BAD ADVICE THE BROADER POINT IS THAT JAPANESE BUREAUCRATS AND AMERICAN JAPANPHOBES HAVE BOTH SHARED THE CONCEIT THAT SOMEHOW JAPAN WAS IMMUNE TO THE LAWS OF ECONOMICS THEY BOTH BELIEVED IN THE MYTH OF MITI CENTRAL PLANNING NONE OF THEM PREDICTED THIS JAPANESE COMEUPPANCE INSTEAD IT WAS THE ANALYSTS WHO UNDERSTAND MARKETS ART LAFFER MICHIGAN'S GARY SAXONHOUSE AND THE GIMLETEYED CHARLES WOLF JR OF RAND WHO FORESAW LONG AGO THAT JAPAN WOULD HAVE TROUBLES THE ERA OF DOING IT AS JAPAN DOES IT IS OVER SAYS MR MAKIN JAPAN'S NEW HOSOKAWA GOVERNMENT ISN'T AS WEDDED TO THESE MYTHS AS THE OLD LDP'S SO PERHAPS IT WILL NOW EMBRACE THE CLINTON TEAM'S BETTER ADVICE TOKYO STOCKS RALLIED THIS WEEK ON JUST SUCH A HOPE IN ANY EVENT JAPAN WON'T STAY DOWN FOREVER ITS PEOPLE AND COMPANIES ARE TOO CREATIVE NOT TO REMAIN FEROCIOUS COMPETITORS DESPITE GOVERNMENT BLUNDERS THEN HAVING HELPED THAT RECOVERY BY CUTTING JAPAN'S TAXES MAYBE MR CLINTON WILL SEE THE WISDOM IN CUTTING AMERICA'S 9312030072 931203 BUSINESS BRIEF 3COM CORP FIRM EXPECTS TO POST PROFIT OF 22 MILLION FOR 2ND PERIOD THE FORECAST EXCEEDS WALL STREET'S EXPECTATIONS FOR THE MAKER OF COMPUTER NETWORKING PRODUCTS EVEN BULLISH ANALYSTS HAD FORECAST THAT THE SANTA CLARA CALIF COMPANY WOULD EARN ONLY ABOUT 50 CENTS A SHARE FOR THE PERIOD ACCORDING TO ZACK'S CONSENSUS REPORTS SECONDQUARTER RESULTS REFLECT THE GREATEST SEQUENTIAL GROWTH IN OUR COMPANY'S HISTORY SAID ERIC BENHAMOU PRESIDENT AND CHIEF EXECUTIVE OFFICER IN THE YEAREARLIER QUARTER THE COMPANY POSTED A PROFIT OF 78 MILLION OR 27 CENTS A SHARE ON SALES OF 1473 MILLION 9312030071 931203 FORM + FUNCTION BY JOHN PIERSON ARE CHILDREN LITTLE GROWNUPS DON'T YOU BELIEVE IT SAY SOME MAKERS OF KIDS' FURNITURE THE MAIN PROBLEM WITH MOST CHILDREN'S FURNITURE IS THAT IT'S JUST A SHRUNKENDOWN VERSION OF ADULT FURNITURE SAYS DESIGNER BASHIR ZIVARI BUT CHILDREN ARE MORE INFORMAL AND OPEN FOR EXPERIMENTATION SO MR ZIVARI HAS DESIGNED KINDERLINK A BENT PLYWOOD STOOL THAT DOUBLES AS A DESK AND STACKS AND LINKS IN A VARIETY OF WAYS ONE PATTERN CONNECTS 20 KINDERLINKS INTO A 9FOOT CIRCLE ANOTHER PRODUCES A SNAKE KIDS CAN HOOK UP WITH SOMEONE ELSE WHERE GROWNUPS HAVE A HARD TIME BREAKING DOWN BARRIERS THE DESIGNER SAYS KINDERLINK IS PRODUCED BY SKOOLS NEW YORK CHILDREN'S FURNITURE BALTIMORE AGREES THAT CHILDREN ARE DIFFERENT CHILDREN HAVE MORE IMAGINATION AND ARE MORE WHIMSICAL SAYS ELIZABETH DANKO PRESIDENT THE COMPANY MAKES WOODEN LEAF CHAIRS WITH BACKS IN THE OUTLINES OF LEAVES NEXT SPRING IT WILL BRING OUT FOOT STOOLS WITH SEATS SHAPED LIKE THE WEBBED FEET OF FOUR KINDS OF BIRDS PEOPLE WHO BUY CHAIRS FOR CHILDREN SEEM TO LIKE KINDERLINKS IRENE MARTIN A PLANNER FOR THE 82 BRANCHES OF THE NEW YORK PUBLIC LIBRARY SAYS SHE TESTED THE STOOL AT ONE BRANCH AND IS CONSIDERING PURCHASING IT FOR OTHERS KIDS SIT ON IT AND UNDER IT SAYS MS MARTIN RHEA HEBERT MANAGER OF THE APPALACHIAN REGIONAL LIBRARY BOONE NC SAYS CHILDREN PLAY LEAPFROG OVER KINDERLINKS AND TURN THEM UPSIDE DOWN TO USE AS MAKEBELIEVE BOATS AND THE STOOLS ARE LIGHT ENOUGH FOR ELDERLY PEOPLE TO DRAG AROUND AS THEY BROWSE BOOKSHELVES SHE SAYS MS HEBERT'S ONLY CRITICISM THE STOOLS A BIT SMOOTH FOR EASY GRABBING NEED HANDHOLDS BY FITS AND STARTS ARCHITECTS AND DESIGNERS ARE LEARNING TO APPLY VIRTUAL REALITY SOME ARE TESTING A SYSTEM DESIGNED BY PRAIRIE VIRTUAL SYSTEMS CHICAGO WHICH LETS A USER DON A SPECIAL HELMET AND SENSORLINED GLOVE FOR A WALK THROUGH A ROOM EXISTING ONLY IN A COMPUTER WITHOUT A COSTLY MOCKUP THE USER CAN TRY THE ARCHITECTURE AND FURNITURE TO CHECK PLACEMENT HEIGHT AND OTHER DETAILS THE SYSTEM'S COST HAS SCARED OFF SOME USERS THEY'RE AFRAID OF THE PRICE TAG 20000 TO 30000 SAYS PRAIRIE'S PRINCIPAL JOHN TRIMBLE SO PRAIRIE PLANS TO OPEN SERVICE CENTERS WHERE FIRMS AND OTHER USERS COULD TRY VIRTUAL REALITY ON AN HOURLY BASIS NEVERTHELESS THE SYSTEM HAS SOME ARDENT ADMIRERS ONE SUCH IS HERMAN MILLER'S MILCARE WHICH FURNISHES HEALTHCARE FACILITIES BARBARA WALL THE COMPANY'S DIRECTOR OF ARCHITECTURE SAYS VIRTUAL REALITY IS BETTER THAN THREEDIMENSIONAL COMPUTING BECAUSE YOU CAN MOVE THINGS AROUND IN ILLINOIS DEERFIELD ARCHITECTS OWP&P HAVE DESIGNED THE NEW COPPLEY MEMORIAL HOSPITAL IN AURORA HOSPITAL ADMINISTRATORS INSISTED ON BUILDING A TRADITIONAL MOCKUP OF A PATIENT ROOM FOR 25000 BUT IT WAS PRAIRIE'S VIRTUAL REALITY THAT DISCOVERED A MISPLACED SINK BOWL WHICH WOULD HAVE COST 8000 TO CORRECT SAYS ARCHITECT DAN CINELLI WESTINGHOUSE ELECTRIC'S KNOLL GROUP HOWEVER INTRODUCED ITS VIRTUAL WORKSTATION THIS PAST SPRING BUT DECIDED NOT TO DEVELOP IT VIRTUAL REALITY IS IN AN IMMATURE STATE SAYS KNOLL RESEARCHER CHRISTINE BARBER THIS DESIGNER OF GAS STATIONS WANTS TO CIRCLE THE SQUARE MOST FILLING STATIONS PLACE PUMPS IN A STRAIGHT LINE WHICH SAYS ALAN GOLDBERG MEANS TRAFFIC JAMS CONFUSION AND UNUSED PUMPS MR GOLDBERG AN ARCHITECT BASED IN WILTON CONN HAS DESIGNED A RADIAL SERVICE STATION WHICH HE SAYS WOULD MAKE IT EASIER FOR A MOTORIST TO REACH A PUMP HIS CIRCULAR LAYOUT WOULD ACCOMMODATE SUCH OTHER COMMERCIAL USES AS A CARWASH DRIVETHROUGH FASTFOOD OUTLET OR RETAIL STORE MR GOLDBERG'S FIRM AG/ENA WAS FOR YEARS CONSULTANT TO MOBIL NOW TO PROMOTE WHAT IT CALLS THE ADVANCED REFUELING RETAIL CENTER AG/ENA HAS JOINED FIVE MANUFACTURERS OF SERVICESTATION COMPONENTS ACCORDING TO MR GOLDBERG EVERY MAJOR OIL COMPANY HAS LOOKED AT HIS RADIAL SERVICE STATION AND TWO HAVE ASKED FOR PROPOSALS THE COMPANIES ARE PLAYING THEIR CARDS CLOSE TO THE VEST A SHELL SPOKESWOMAN FOR EXAMPLE CALLS THE RADIAL DESIGN INTERESTING THE COMPETITION IS LESS RETICENT GREG KOLLIGIAN MANAGING DIRECTOR OF SELAME DESIGN IN NEWTON LOWER FALLS MASS SAYS 10 YEARS OF RESEARCH FOR AMOCO HAVE CONVINCED HIM THAT SINGLEPUMP ISLANDS ARE THE MOST EFFICIENT WAY TO DISPENSE GAS AND THAT A RADIAL SYSTEM WOULD CREATE MORE CONFUSION SAUL BASS OF LOS ANGELES WHO HAS DESIGNED FILLING STATIONS FOR EXXON AND BRITISH PETROLEUM SAYS A ROUND LAYOUT WOULDN'T FIT ON THE ODDSHAPED LOTS THAT MANY SERVICE STATIONS OCCUPY MR GOLDBERG REPLIES THAT ENVIRONMENTAL REGULATIONS WILL FORCE THE CLOSING OF 50000 FILLING STATIONS OVER THE NEXT FIVE YEARS AND THAT NEW GAS STATIONS WILL BE BUILT ON LARGER LOTS THAT CAN ACCOMMODATE A RADIAL DESIGN 9312030070 931203 BUSINESS BRIEF ADVANCED INTERVENTIONAL SYSTEMS WORK FORCE IS REDUCED 18 SENIOR OFFICERS' SALARIES CUT ADVANCED INTERVENTIONAL SYSTEMS INC SAID IT REDUCED ITS WORK FORCE 18 CUT SENIOR EXECUTIVES' SALARIES AND TWO DIRECTORS RESIGNED THE IRVINE CALIF MAKER OF MEDICAL PRODUCTS CITING AN UNCERTAIN ECONOMIC CLIMATE SAID IT CUT 31 JOBS AT ITS IRVINE FACILITY REDUCING THE TOTAL NUMBER OF EMPLOYEES TO 140 FROM 171 ROBERT E WALL ADVANCED INTERVENTIONAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WOULD TAKE A 500000 CHARGE IN THE FOURTH QUARTER FOR RESTRUCTURING EXPENSES AND COSTS INCURRED IN A FAILED MERGER AGREEMENT WITH SPECTRANETICS CORP MR WALL ADDED THAT HE HAS REDUCED HIS SALARY TO 126407 FROM 168542 OR 25 AND THAT HE HAS ASKED 13 OTHER SENIOR EXECUTIVES AND RESEARCH STAFF TO TAKE PAYCUTS RANGING FROM 5 TO 25 ADDITIONALLY THE COMPANY SAID RAYMOND WILLIAMS AND CHARLES FRENCH RESIGNED FROM THE BOARD REDUCING THE BOARD'S TO FOUR MSSRS WILLIAMS AND FRENCH COULDN'T BE REACHED ON THE NASDAQ STOCK MARKET ADVANCED INTERVENTIONAL FELL 25 CENTS OR 17 TO 125 9312030069 931203 THE COMING COMMODITIES BOOM BY JAMES GRANT THE OIL CARTEL IS IN RUINS INTEREST RATES ARE AS LOW AS THEY'VE BEEN IN A GENERATION AND THE DOW JONES INDUSTRIAL AVERAGE IS NEAR ITS ALLTIME HIGH MORE AND MORE AMERICANS ARE ACQUIRING THE COMPULSIVE HABIT OF OPENING THEIR NEWSPAPERS TO THE MUTUAL FUNDS LISTINGS AND MENTALLY COMPUTING THEIR REVISED NET WORTH BEFORE THEY SIT DOWN TO BREAKFAST FOR THE PAST SEVERAL ANOMALOUS YEARS WALL STREET HAS DONE BETTER THAN MAIN STREET COLLEGE GRADUATES HAVE BEEN BETTER ADVISED TO TRADE SECURITIES THAN TO GO TO WORK FOR THE BUSINESSES THAT ACTUALLY ISSUE THEM BETWEEN PAPER ON THE ONE HAND AND STUFF ON THE OTHER THE BIG INVESTMENT MONEY HAS BEEN MADE IN PAPER BUT STUFF WILL HAVE ITS DAY IT IS EVEN POSSIBLE TO BELIEVE THAT OWNING AND MANAGING A BUSINESS WILL BE MORE PROFITABLE THAN SPECULATING ON ONE OUR CURRENT FINANCIAL PROSPERITY IS AS STRANGELY DISEMBODIED AS IT IS STUPENDOUS STOCK PRICES ARE HIGH BECAUSE IN PART INTEREST RATES ARE LOW INTEREST RATES ARE LOW BECAUSE FIRST AND FOREMOST THE WORLD ECONOMY IS WEAK INFLATION IS DOWN FACTORY INVENTORIES ARE LOW AND LEANANDMEAN HAS BECOME THE NEW CORPORATE MANAGEMENT GOSPEL IT IS HEAVEN ON EARTH AS CONCEIVED BY MERRILL LYNCH MERRILL'S HOWEVER IS NOT THE PERMANENT EARTHLY PLAN AS RECENTLY AS THE EARLY 1980S BONDS WERE DISPARAGED AS CERTIFICATES OF CONFISCATION BY A HOT NEW ISSUE THE INVESTORS OF THE CARTER ERA HAD IN MIND A BARREL OF HEATING OIL A BAG OF SILVER COINS OR THAT SPECIAL REAL ESTATE TAX SHELTER SO RICHLY PRICED DID COMMODITIES BECOME THAT PRODUCERS OBLIGINGLY CREATED MORE OF THEM BEFORE VERY LONG INFLATIONARY SCARCITY GAVE WAY TO DISINFLATIONARY PLENTY THUS IN GENERAL FOR AS LONG AS BONDS AND STOCKS HAVE BEEN APPRECIATING COMMODITY PRICES HAVE BEEN DEPRECIATING HOWEVER SINCE SUPPLY ALWAYS RISES TO MEET DEMAND NOTHING IN MARKETS LASTS FOREVER A LITTLE LIKE THE FARMERS AND MINERS OF THE 1970S THE INVESTMENT BANKERS OF 1993 ARE WORKING OVERTIME TO GIVE INVESTORS WHAT THEY THINK THEY CANNOT LIVE WITHOUT THE BANKERS OF COURSE HAVE AN EASIER TIME OF IT THAN THE MINERS AND FARMERS DID BECAUSE THE COST OF CREATING A BOND OR STOCK IS APPROXIMATELY ZERO WHEREAS THE COST OF PRODUCING A BUSHEL OF CORN OR AN INGOT OF ALUMINUM IS NOT THE BURNING QUESTION IS WHETHER DISINFLATION IS ANY MORE A PERMANENT BLESSING THAN INFLATION WAS A PERMANENT BLIGHT A BELIEVER IN THE LAW OF SUPPLY AND DEMAND HAS REASON TO DOUBT IT THE END OF THE GREAT INFLATION OF THE 1960S AND 1970S WAS HASTENED NOT ONLY BY THE TIGHT MONETARY POLICY OF PAUL VOLCKER BUT ALSO BY THE ADAPTIVE POWERS OF FREE MARKETS HIGH INTEREST RATES CHOKED OFF CONSUMER DEMAND HIGH PRICES UNLEASHED PRODUCER SUPPLY THE REST IS DISINFLATIONARY HISTORY IN THE 1990S WE HAVE WITNESSED THE REVERSE RECENTLY LOW INTEREST RATES HAVE HELPED TO STIMULATE DEMAND THE ABSENCE OF INFLATION HAS DISCOURAGED THE ADDITION OF NEW MARGINAL SUPPLY BECAUSE COMPANIES HAVEN'T BEEN ABLE TO RAISE PRICES THEY HAVE SYSTEMATICALLY REDUCED COSTS ELIMINATING EXCESS CAPACITY THEY HAVE ADAPTED TO WHAT THE MAINSTREAM ECONOMIC FORECASTING PROFESSION ERRONEOUSLY BELIEVES TO BE A PERMANENT STATE OF GLUT AS THE CLUB OF ROME IN THE 1970S CONTENDED THAT THE WORLD WAS RUNNING OUT OF RESOURCES SO THE NEW CONSENSUS OF INVESTMENT OPINION BELIEVES THAT THERE WILL ALWAYS BE TOO MANY BUT BECAUSE THERE HAVE BEEN TOO MANY FOR SO LONG ODDS ARE IMPROVED THAT THERE WILL ONE DAY BE TOO FEW EVEN ACCEPTING THE VALIDITY OF THIS TRUISM OF COURSE AN INVESTOR WILL WANT TO KNOW IF THE CHANGE WILL OCCUR IN HIS OR HER LIFETIME IT WILL INDEED AND SOONER RATHER THAN LATER BECAUSE PEOPLE LINE UP WITH THE TRIED AND TRUE THE SURPLUSES OF 1993 FROM ALUMINUM TO CRUDE OIL TO WHITECOLLAR LABOR ARE REAL ENOUGH HOWEVER AN INTERESTING SPATE OF SHORTAGES IS ALSO BONA FIDE AND ALL THE MORE SIGNIFICANT BECAUSE IT HAS ELICITED SO LITTLE COMMENT THERE ARE NOT ENOUGH TRUCK DRIVERS FOR INSTANCE AND THERE ARE NOT ENOUGH RAILROAD FREIGHT CARS LEADING US CEMENT MANUFACTURERS ARE OPERATING AT 93 OR SO OF THEIR PRODUCTIVE CAPACITY DESPITE A LEVEL OF CONSTRUCTION ACTIVITY THAT IS VERY FAR FROM A BOOM IN THE MIDWEST THERE HAVE BEEN SHORTAGES OF GYPSUM WALLBOARD A STAPLE OF HOUSE CONSTRUCTION THE PRICE OF CONTAINERBOARD WHICH GOES INTO ORANGEJUICE CARTONS AND CARDBOARD BOXES HAS RECENTLY GONE UP DESPITE THE DEEP EUROPEAN RECESSION THE WORLD'S STOCK OF CORN BARLEY AND OTHER COARSE GRAINS IN RELATION TO WORLD CONSUMPTION STANDS AT THE LOWEST LEVEL IN 20 YEARS SMALL FIRMS SAY IT'S TOUGH TO FILL SOME JOB OPENINGS THE JOURNAL REPORTED RECENTLY A PROVOCATIVE PIECE OF NEWS IN THE CONTEXT OF SO MANY WELLPUBLICIZED FIRINGS LESS INVENTORY IS ONE MORE FINANCIAL ASSETS IS ANOTHER HOLDING THESE TRUTHS TO BE LUCRATIVE MAIN STREET HAS BECOME LEANER AND WALL STREET FATTER IN GENERAL NONFINANCIAL COMPANIES HAVE REDUCED THEIR INVENTORIES AND THE CAPACITY TO PRODUCE UNWANTED PRODUCTS AS THE DEALERS IN STOCKS BONDS AND MUTUAL FUNDS HAVE EXPANDED THEIRS NOT ONLY HAS THE LEVEL OF INTEREST RATES FALLEN ALSO AND JUST AS SIGNIFICANTLY SHORTTERM INTEREST RATES HAVE FALLEN MORE STEEPLY THAN LONGTERM RATES THE RESULT HAS BEEN A KIND OF BONDMARKET PARADISE A BANK OR A CREDITWORTHY INVESTMENT PARTNERSHIP HAS BEEN ABLE TO STOCKPILE ENORMOUS QUANTITIES OF GOVERNMENT SECURITIES IT HAS BEEN ABLE TO FINANCE THEM AT A COST OF 3 OR SO IT HAS BEEN ABLE TO EARN A YIELD OF 4 AND UP OVER THE PAST SEVERAL YEARS THE DIFFERENCE BETWEEN WHAT ONE HAS BEEN ABLE TO EARN AND WHAT ONE HAS HAD TO PAY HAS PRODUCED BILLIONS OF DOLLARS IN INVESTMENT PROFITS MORE THAN ANY OTHER SINGLE FACTOR THE ALIGNMENT OF INTEREST RATES THE SHAPE OF THE YIELD CURVE IN INVESTMENT JARGON HAS MADE THE BANKING SYSTEM HALE AGAIN INDEED THE NATION'S BANKS ARE BEGINNING TO PICK UP WHERE IN APPROXIMATELY 1989 THEY LEFT OFF THEY ARE BEGINNING TO LEND AGAIN CREATING CHECKING ACCOUNTS THAT IS TO SAY MONEY AS THEY GO WE MAY SAY POETICALLY THAT THE FEDERAL RESERVE PRINTS MONEY WHAT IT DOES IN FACT IS FACILITATE LENDING AND BORROWING BY CREATING THE DOLLARS CALLED BANK RESERVES THE FED HAS BEEN CREATING THESE BY THE JOB LOT EXPANDING ITS BALANCE SHEET AT DOUBLEDIGIT ANNUAL RATES ITS PURCHASES OF TREASURYS IN THE PAST YEAR AMOUNT TO SOME 36 BILLION THIS AT A TIME WHEN THE BALANCE SHEETS OF MOST COMMERCIAL BANKS HAVE HARDLY BEEN GROWING AT ALL A HALLMARK OF THE PAST THREE OR FOUR YEARS IS THAT THIS HISTORICALLY BRISK RATE OF CENTRALBANK EXPANSION HAS HAD NO INFLATIONARY CONSEQUENCES BUYING THE TREASURY'S SECURITIES IN BULK THE FED HAS HELPED THE BANKS AND THE BOND MARKET BUT IT HAS EVIDENTLY HURT NOBODY ELSE EXCEPT THE PEOPLE WHO LIVE ON INTEREST INCOME THE ONLY THING WRONG WITH THIS MOST PERFECT WORLD IS THAT IT CAN'T LAST FOREVER IT CANNOT BECAUSE PERFECTION IS SO HABITFORMING CONDITIONED BY FALLING INTEREST RATES AND AN ECONOMY THAT APPARENTLY HAS CONTRACTED A CASE OF LYME DISEASE MERCHANTS HAVE LEARNED TO ORDER HANDTOMOUTH CONSUMERS OF GRAINS AND INDUSTRIAL METALS HAVE LEARNED THAT THEY CAN BUY ALL THEY NEED ON THE SPOT MARKET AT THE PRICE OF THE LAST SALE THERE'S NO NEED TO HEDGE AGAINST RISING PRICES BECAUSE ON THE EVIDENCE OF MOST OF THE PAST DOZEN YEARS COMMODITY PRICES DON'T RISE ON WALL STREET ON THE OTHER HAND BROKERS AND DEALERS HAVE COME TO BELIEVE THAT FINANCIAL ASSETS ONLY GO UP INTEREST RATES FALL STOCK PRICES RISE AND FINANCIAL INVENTORIES RELIABLY APPRECIATE YOU CAN LOOK IT UP ADAPTING TO THESE MOST FAMILIAR CIRCUMSTANCES AMERICANS MAY HOWEVER BE SETTING THEMSELVES UP FOR A JOLT FULLBLOODED PROSPERITY AS AND WHEN IT RETURNS WOULD RECEIVE DECIDEDLY MIXED NOTICES FROM THE NATION'S MUTUAL FUNDS BUYERS A DRAMATIC TURN FOR THE BETTER IN WORLD BUSINESS ACTIVITY WOULD IMPLY HIGHER COMMODITY PRICES AND HIGHER INTEREST RATES IT WOULD POINT TO MORE LENDING AND BORROWING AND FASTER MONETARY GROWTH IT WOULD IN SHORT RING DOWN THE CURTAIN ON THIS BEST OF ALL POSSIBLE WORLDS FOR STOCKS AND BONDS THE STRANGE TWILIGHT BETWEEN RECESSION AND EXPANSION IN WHICH INTEREST RATES HAVE FALLEN BUT BUSINESS SALES HAVEN'T RISEN WHAT WOULD TURN THE FINANCIAL MARKETS ON THEIR HEADS A SHOW OF UNEXPECTED STRENGTH IN THE US A THRUST TOWARD REFLATION BY GOVERNMENTS IN EUROPE OR JAPAN THE SIMPLE BOTTOMING OUT OF RECESSIONS ABROAD AS THE BRITISH RECESSION HAS ALREADY COME TO AN END THE HEAVY NET IMPORTATION OF COMMODITIES BY COUNTRIES LIKE CHINA AND INDIA COUNTRIES THAT ACCORDING TO THE NEW RECEIVED WISDOM WILL ONLY CONTRIBUTE TO THE COMING GLUTS OF EVERYTHING NONE OF THIS MUST HAPPEN TOMORROW BUT THE ADAPTIVE POWERS OF MARKETS ARE SPEEDING THE DAY OF CHANGE LOOKING AHEAD WE WILL ALL KNOW WHEN THE PENDULUM HAS SWUNG TO THE OTHER EXTREME AGAIN MILLIONS OF AMERICANS WILL HAVE ACQUIRED THE COMPULSIVE HABIT OF OPENING THEIR NEWSPAPERS TO THE COMMODITY PAGES AND MENTALLY CALCULATING THE VALUE OF THEIR SOYBEAN POSITIONS BEFORE THEY SIT DOWN TO BREAKFAST 9312030068 931203 BUSINESS BRIEF MELLON BANK CORP FIRM TO BE EQUITY PARTNER IN ATM PROCESSING SERVICE MELLON BANK CORP WILL PAY 29 MILLION AND CONTRIBUTE ITS NETWORK SERVICES DIVISION TO BECOME AN EQUITY PARTNER IN ELECTRONIC PAYMENT SERVICES INC A COLLABORATIVE OF FOUR OTHER BANKS THAT PROCESS ELECTRONIC AUTOMATED TELLER TRANSACTIONS THE MELLON DIVISION HAD 1992 REVENUE OF 40 MILLION AND 163 EMPLOYEES THOUGH THE BANK WOULDN'T DISCLOSE ITS VALUE IN THE DEAL WHICH REQUIRES REGULATORY CLEARANCE THE NETWORKING UNIT PROVIDES ATM PROCESSING SERVICES TO ABOUT 800 FINANCIAL INSTITUTIONS IN 35 STATES AND MERCHANT PROCESSING TO MORE THAN 50000 LOCATIONS IN 50 STATES EPS IS THE HOLDING COMPANY FOR MONEY ACCESS SERVICE OR MAC THE LARGEST AUTOMATED TELLER TRANSACTION PROCESSOR IN THE COUNTRY AS WELL AS BUYPASS THE NATION'S LEADING THIRDPARTY ELECTRONIC TRANSACTION PROCESSOR MELLON WILL HAVE A 2366 EQUITY OWNERSHIP IN EPS EQUAL TO THAT OF BANC ONE CORP CORESTATES FINANCIAL CORP AND PNC BANK CORP SOCIETY CORP WILL HAVE A 535 SHARE 9312030066 931203 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 49 DAYS 335 50 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 346 30 DAYS 345 60 DAYS 344 90 DAYS CERTIFICATES OF DEPOSIT 267 ONE MONTH 272 TWO MONTHS 273 THREE MONTHS 281 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 335 THREE MONTHS 345 SIX MONTHS BANKERS ACCEPTANCES 335 30 DAYS 327 60 DAYS 327 90 DAYS 328 120 DAYS 329 150 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 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/2 ONE MONTH 3 1/2 THREE MONTHS 3 9/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 619 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 711 60 DAYS 718 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 708 60 DAYS 718 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312030065 931203 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED NOV 26 ACCOUNTED FOR 87 OR AN AVERAGE 187 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 83 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 284 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 483 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 443 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 434 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 123 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY W&D SECURITIES AND CS FIRST BOSTON DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9312030064 931203 PRICING HEALTH CARE HIDING A TAX OFF BUDGET BY PAUL G MERSKI THIS WEEK THERE WERE REPORTS THAT THE CONGRESSIONAL BUDGET OFFICE HAS CAVED IN TO THE CLINTON ADMINISTRATION'S ARMTWISTING ALTHOUGH SEN ROBERT DOLE SAID YESTERDAY THAT THE MATTER WAS STILL UNDECIDED THE WASHINGTON POST REPORTED THAT THE CBO HAS AGREED TO REMOVE THE FINANCING OF THE HEALTH CARE PLAN FROM THE FEDERAL BUDGET THIS DEVELOPMENT IS DISTURBING BECAUSE IT COMPROMISES THE INTEGRITY OF THE CBO BUT THE GREATER CONCERN IS THAT IT MEANS MORE THAN ONESEVENTH OF THE COUNTRY'S GROSS NATIONAL PRODUCT SOON TO BE HEAVILY INFLUENCED BY THE FEDERAL GOVERNMENT WON'T BE SUBJECT TO CONVENTIONAL BUDGETARY PRACTICES THAT'S A GIMMICK BUT IT'S ALSO A CLASSIC EXAMPLE OF FISCAL IRRESPONSIBILITY WITHOUT AN ACCURATE SCORING AND BUDGET RECORDING OF THE MAJOR FINANCING FOR PRESIDENT CLINTON'S HEALTH CARE OVERHAUL IT WILL BE IMPOSSIBLE TO MEASURE HOW THIS GOVERNMENT POLICY IMPACTS THE ECONOMY AND THE FLOW OF PRIVATE RESOURCES LEAVING HEALTH CARE FINANCING IN A BUDGETARY TWILIGHT WILL ALLOW HEALTH SPENDING AND FINANCING TO ESCAPE BOTH MARKET DISCIPLINE AND ANY EFFECTIVE CONTROL OF GOVERNMENT TAXPAYERS KNOW ALL TOO WELL THE RISK ASSOCIATED WITH SHODDY QUASIBUDGET APPROACHES TO GOVERNMENTDICTATED ENTITIES THE 250 BILLION TAXPAYER COST OF THE S&L CLEANUP AND THE IMPENDING GOVERNMENT LIABILITY OF THE TEETERING PENSION BENEFIT GUARANTY CORPORATION ALONE SHOULD INSTILL THE STRICTEST BUDGETARY ACCOUNTING FEAR INTO CONGRESS BUT THIS HASN'T STOPPED MR CLINTON FROM CLAIMING HE CAN FINANCE HIS HEALTH REFORM PLAN WITHOUT BROADBASED NEW TAXES RELYING INSTEAD ON A TOBACCO TAX AND A 1 CORPORATE TAX INTENDED TO RAISE A COMBINED 89 BILLION OVER FIVE YEARS BUT THIS CLAIM IS LITTLE MORE THAN A VERBAL SLEIGHTOFHAND THAT UNFORTUNATELY APPEARS TO HAVE THE BLESSING OF THE CBO CONSIDER THAT THE PRIMARY REVENUE SOURCE OF THE HEALTH CARE PLAN IS A MANDATE REQUIRING ALL EMPLOYERS TO PAY AT LEAST 80 OF THEIR WORKERS' SET PREMIUMS TO THE GOVERNMENTESTABLISHED STATE HEALTH ALLIANCES THIS MANDATE LIMITED TO 79 OF THEIR PAYROLL IS NOTHING BUT A PAYROLL TAX REGARDLESS OF THE FINANCING NOMENCLATURE USED AND REGARDLESS OF WHETHER A PROJECT IS ON BUDGET OR OFF BUDGET PEOPLE WILL PAY FOR THE HEALTH CARE REFORM THEY ARE SMART ENOUGH TO KNOW THAT IF THEY ARE LEGALLY REQUIRED BY GOVERNMENT TO PAY A SET AMOUNT OF MONEY FOR A GOVERNMENTDEFINED PURPOSE AND THEY DON'T HAVE ANY CHOICE IT'S A TAX WHILE THE ENTIRE FEDERAL SOCIAL SECURITY PROGRAM IS SIMILARLY FINANCED BY EMPLOYER AND EMPLOYEE PAYROLL CONTRIBUTIONS EVERYONE KNOWS WHY THEY ARE TAXES AND THEY ARE DULY TREATED AS SUCH IN THE FEDERAL BUDGET WHY IS THE HEALTH FINANCING TERMINOLOGY SO IMPORTANT BECAUSE WITHOUT THE MANDATED PREMIUM THE ADMINISTRATION'S PROPOSAL CRUMBLES THE PROPOSED MANDATE ON EMPLOYERS WOULD RAISE ABOUT 60 OF THE MORE THAN 320 BILLION IN TOTAL SOCALLED PREMIUMS ANTICIPATED IN THE CLINTON SYSTEM THE REMAINDER WOULD BE PAID DIRECTLY BY INDIVIDUALS AND INDIRECTLY THROUGH GOVERNMENT SUBSIDIES BUT THE ADMINISTRATION'S WORDPLAY DOESN'T SEEM TO BE CONVINCING MEMBERS OF CONGRESS IN THE HOUSE THE FEAR OF DICTATING NEW TAXES HAS ALREADY MOTIVATED MORE THAN HALF THE MEMBERS TO SIGN ON TO ALTERNATIVE HEALTH REFORM PROPOSALS THAT DO NOT INCLUDE AN EMPLOYER MANDATE ALONG WITH SOCIAL SECURITY UNEMPLOYMENT COMPENSATION PROVIDES ANOTHER GOOD EXAMPLE OF A FEDERAL/STATE PROGRAM THAT IS FULLY RECORDED ON THE FEDERAL BUDGET STATES COLLECT THE TAXES AND MAKE THE EXPENDITURES BUT DO SO AS AGENTS OF THE FEDERAL GOVERNMENT WITH THE TREASURY DEPARTMENT KEEPING TABS ON THE SYSTEM GIVEN THESE PRECEDENTS IT WOULD BE HARD TO JUSTIFY LEAVING THE BULK OF MR CLINTON'S HEALTH SYSTEM OFFBUDGET THE PLAN WOULD INVOKE THE POWER OF THE FEDERAL GOVERNMENT TO COMPEL THE PAYMENT OF SPECIFIC LEVIES DEFINE A CLASS OF ELIGIBLE BENEFICIARIES GUARANTEE SPECIFIC BENEFITS AND CREATE A MASSIVE REGULATORY APPARATUS LARGER THAN ANY EXISTING FEDERAL PROGRAM TAXES ACT AS THE MOST IMPORTANT PRICE MECHANISM FOR PEOPLE TO DECIDE HOW MUCH OR HOW LITTLE GOVERNMENT INVOLVEMENT THEY DESIRE AND ARE WILLING TO PAY FOR THE LOGIC FOR TREATING MR CLINTON'S INSURANCE PREMIUM MANDATE AS AN ADDITIONAL TAX IS SIMPLE IT'S A NEW TAX FOR ANY PERSON FORCED TO PAY HIGHER INSURANCE PREMIUMS IT'S A NEW TAX FOR EMPLOYERS WHO CURRENTLY CANNOT AFFORD TO PAY FOR HEALTH INSURANCE AND WOULD BE MANDATED TO DO SO IT'S A NEW TAX EVEN FOR EMPLOYERS WHO PROVIDE HEALTH INSURANCE BUT WOULD HAVE TO SPEND MORE TO COMPLY WITH THE FULL PREMIUM AMOUNT MANDATED UNDER THE CLINTON PLAN TO ALLOW AN HONEST PUBLIC DEBATE ON HEALTH CARE REFORM THE CLINTON ADMINISTRATION SHOULD FESS UP TO THE TRUE COST OF ITS PROPOSAL IT SHOULD INCLUDE IT IN THE BUDGET AND CALL A TAX A TAX THE FEDERAL GOVERNMENT HAS PROVED TOO OFTEN THAT IT CAN LAUNCH MASSIVE ENTITLEMENT PROGRAMS SUCH AS SOCIAL SECURITY MEDICARE AND MEDICAID BY INITIALLY CONCEALING FROM TAXPAYERS HOW MUCH THEY WILL REALLY COST AND SOCKING IT TO THEM LATER WITH AMERICAN FAMILIES SHOULDERING A RECORD TOTAL TAX BURDEN AND FACING PERPETUAL FEDERAL BUDGET DEFICITS IT'S EASY TO SEE WHY MR CLINTON WOULD PREFER TO KEEP THE BULK OF HIS PROPOSED HEALTH CARE SPENDING INCREASES FINANCED BY NEW TAXES OFF THE FEDERAL BUDGET BOOKS AND OUT OF THE PUBLIC EYE BUT THAT DOESN'T EXCUSE HIS DECEPTION MR MERSKI IS DIRECTOR OF FISCAL POLICY FOR CITIZENS FOR A SOUND ECONOMY IN WASHINGTON 9312030063 931203 BUSINESS BRIEF GENERAL HOST CORP LOSS MORE THAN DOUBLED IN FISCAL THIRD QUARTER GENERAL HOST CORP SAID ITS NET LOSS IN THE FISCAL THIRD QUARTER MORE THAN DOUBLED BECAUSE OF LOWER MARGINS AND LOSSES FROM A 495 STAKE IN SUNBELT NURSERY GROUP INC ACQUIRED IN APRIL THE SPECIALTY LAWN AND GARDEN RETAILER POSTED A LOSS OF 114 MILLION OR 57 CENTS A SHARE IN THE QUARTER ENDED NOV 7 COMPARED WITH A LOSS OF 5 MILLION OR 28 CENTS A SHARE IN THE QUARTER ENDED NOV 1 1992 SALES BY ITS PRINCIPAL OPERATING SUBSIDIARY FRANK'S NURSERY & CRAFTS ROSE TO 1054 MILLION FROM 1002 MILLION A YEAR AGO JIM SIMPSON CHIEF FINANCIAL OFFICER SAID MARGINS FELL BECAUSE A SLOW SUMMER RESULTED IN MORE PRODUCTS BEING MARKED DOWN IN ADDITION DISTRIBUTION COSTS WERE HIGHER BECAUSE OF MORE STORE OPENINGS HE ADDED THAT SUNBELT NURSERY WITH OUTLETS IN TEXAS ARIZONA AND CALIFORNIA FAILED TO MEET SALES EXPECTATIONS BECAUSE OF A VERY HOT AND DRY SUMMER THE STAMFORD CONN COMPANY SAID IT HAS BEGUN AN INTENSIVE REVIEW OF ITS EXPENSES AND ASSETS THE GOAL IS TO ELIMINATE AT LEAST 16 MILLION IN COSTS AND TO PAY DOWN 50 MILLION OF LONGTERM DEBT OVER THE NEXT 15 MONTHS SAID HARRIS J ASHTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9312030062 931203 LEISURE & ARTS THEATER REP DONE RIGHT BY JOEL HENNING CHICAGO WHATEVER THE VIRTUES AND RISKS WE DON'T SEE MUCH REPERTORY THEATER IN THE US ACTORS RESIST BEING TIED DOWN TO SEASON CONTRACTS THEATERS PREFER TO CAST CELEBRITIES RATHER THAN TRAIN PERFORMERS ROTATING REPERTORY CAN'T BE COMMERCIALLY JUSTIFIED ITS NURTURE REQUIRES ACTORS WILLING TO RISK SAYING NO TO RANDOM OPPORTUNITIES AND AN ANGEL NOT ENTIRELY DRIVEN BY THE BOTTOM LINE UNDAUNTED BY SUCH OBSTACLES COURT THEATRE THE PROFESSIONAL COMPANY RESIDENT AT THE UNIVERSITY OF CHICAGO HAS RESOLVED TO GIVE ROTATING REPERTORY A WHIRL AND IS NOW DEMONSTRATING THAT IT CAN BE DONE RIGHT RIGHT HERE THE PLAYS MARIVAUX'S FRENCH CLASSIC THE TRIUMPH OF LOVE AND CARYL CHURCHILL'S MODERN BRITISH SEX FARCE CLOUD NINE WERE WRITTEN ALMOST 250 YEARS APART BUT THEY MAKE NICELY MATCHED STATEMENTS ABOUT THE AMBIGUITIES OF LOVE LUST GENDER AND CLASS MORE IMPORTANTLY COURT HAS ASSEMBLED A TALENTED TROUPE OF PLAYERS WHO MAKE BOTH PRODUCTIONS FUN TO SEE MARIVAUX WROTE TRIUMPH IN 1732 IT BOMBED CLOSING AFTER FIVE PERFORMANCES AND NOT REOPENING FOR ALMOST TWO CENTURIES UNTIL LAST YEAR MARIVAUX WAS CONSIDERED TOO DELICATE FOR AMERICAN TASTES AND WAS NEVER PERFORMED LITTLE HAPPENS ONSTAGE EXCEPT THE INTRICATE FUSILLADE OF WORDS SHOT BACK AND FORTH BY CHARACTERS IN REFINED CONFLICT THE FRENCH CALL THIS FANCY FENCING MARIVAUDAGE IN A SURPRISINGLY ROBUST ENGLISH ADAPTATION BY STEPHEN WADSWORTH FIRST PERFORMED AT MCCARTER THEATRE IN PRINCETON NJ IN 1992 CHARLES NEWELL'S TRIUMPH AT THE COURT REMOVES THE PLAY FROM ITS 18THCENTURY TABLEAU AND SETS IT IN A STARK HARDEDGED WORLD PLAYING AGAINST THE STAGE DIRECTIONS WHICH PRESCRIBE A LUSH GARDEN MR NEWELL HAD JOHN CULBERT HIS SCENIC AND LIGHTING DESIGNER SET THE ACTION IN A HUGE RECTANGULAR SANDBOX FILLED WITH SHIMMERING WHITE SAND GAYLAND SPAULDING'S COSTUMES ARE OF MARIVAUX'S TIME BUT WITH MOST OF THE COLOR REMOVED NOTHING DISTRACTS US FROM ENGAGING FIRST WITH THE ARTIFICE AND CONTRIVANCE IN THE CHARACTERS' MINDS AND THEN WITNESSING THEIR MISGUIDED HEADS GIVE WAY TO THEIR MISGUIDED HEARTS MARIVAUX DID NOT MAKE THIS KIND OF CLARITY SIMPLE TO ACHIEVE LEONIDE A POWERFUL PRINCESS DISGUISES HERSELF AS A YOUNG MALE STUDENT TO INSINUATE HER WAY INTO THE HOME OF HERMOCRATE AN ASCETIC PHILOSOPHER WHERE HER BELOVED PRINCE AGIS HERMOCRATE'S WARD RESIDES HER DISGUISE BUYS HER TIME TO WOO AGIS AND CONVINCE HIM THAT SHE IS NOT THE WICKED PRINCESS RESPONSIBLE FOR THE LOSS OF HIS KINGDOM HERMOCRATE QUICKLY SEES THROUGH LEONIDE'S DISGUISE FORSAKES THE LIFE OF THE MIND AND FALLS HOPELESSLY IN LOVE WITH HER HIS DOUR SPINSTERLY SISTER LEONTINE ALSO MELTS INTO A QUIVERING PUDDLE OF PASSION FOR LEONIDE BUT UNLIKE HER BROTHER SHE DOES NOT SEE THAT LEONIDE IS REALLY A WOMAN IN THE END LEONIDE WINS AGIS BUT HERMOCRATE AND LEONTINE ARE LEFT HIGH AND DRY BETTER DECEIVED AND ABANDONED WE ARE LEFT TO BELIEVE THAN NEVER TO HAVE FELT PASSIONATE AT ALL IF MARIVAUX WAS CONCERNED WITH EXTERNAL DISGUISE AND SUPPRESSED FEELING MS CHURCHILL IS CONCERNED WITH SOCIAL ROLEPLAYING AND SUPPRESSED HOMOSEXUALITY THE FIRST ACT OF CLOUD NINE IS SET IN LATE19THCENTURY BRITISH AFRICA THE SECOND ACT NOW PAY ATTENTION OR YOU'RE NOT GOING TO GET THIS IS SET A CENTURY LATER IN MODERN ENGLAND BUT THE CHARACTERS HAVE AGED ONLY 25 YEARS MS CHURCHILL WROTE THE PART OF JOSHUA THE BLACK AFRICAN MANSERVANT FOR A WHITE ACTOR BETTY THE VERY VICTORIAN WIFE AND MOTHER IS WRITTEN TO BE PLAYED BY A MAN HER EFFEMINATE SON EDWARD IS PLAYED BY A YOUNG WOMAN CLIVE IS HIS MACHO FATHER WHO CONSTANTLY BERATES EDWARD FOR HIS INTEREST IN DOLLS AND OTHER UNMANLY ACTIVITIES EDWARD'S BABY SISTER VICTORIA IS APTLY PORTRAYED BY A SMALL DUMMY IN THE SECOND ACT EDWARD IS AN UNHAPPY HOMOSEXUAL PLAYED BY THE SAME ACTOR WHO WAS HIS FATHER IN ACT ONE NOW HIS BABY SISTER IS A DEPRESSED SEXUALLY AMBIVALENT WOMAN SHE HAS A HUSBAND PLAYED BY THE SAME ACTOR WHO WAS A HOMOSEXUAL EXPLORER IN ACT ONE AND A FEMALE LOVER WHO HAS A FOURYEAROLD DAUGHTER PLAYED BY THE SAME ACTOR WHO WAS THE BLACK SERVANT IN ACT ONE GOT IT WELL YOU HAD TO HAVE BEEN THERE AND SEEN WHAT NICHOLAS RUDALL THE DIRECTOR OF CLOUD NINE DID TO BRING OUT THE DISTINCTIVE ENSEMBLE QUALITIES OF THE PIECE AND PUNCH UP THE HUMOR THE MARIVAUX KEPT ME SMILING THROUGHOUT BUT MS CHURCHILL'S BIZARRE CONCOCTION MADE ME LAUGH OUT LOUD KATE COLLINS IS THE LINCHPIN OF THIS REPERTORY COMPANY IN THE MARIVAUX SHE PLAYS LEONIDE THE PRINCESS PRETENDING TO BE A LAD IN THE CHURCHILL PIECE SHE FIRST PLAYS EDWARD THE EFFEMINATE BOY IN THE SECOND ACT SHE IS VICTORIA THE DEPRESSED SEXUALLY AMBIVALENT WOMAN WHEN I WATCHED THE LATE SIR LAURENCE OLIVIER PERFORM I SAW HIS GAIT THE ROLL OF HIS HIPS THE MOVEMENT OF HIS HANDS THE PURSE OF HIS LIPS EVERY GESTURE AND MURMUR EMPLOYED IN THE SERVICE OF HIS ROLE THAT'S THE KIND OF ACTRESS WE HAVE IN MS COLLINS WHETHER SHE IS BEING PRINCELY MINCING SEXUAL ENERGETIC OR OVERWHELMED I WANTED HER TO BE A BIT LESS HARDEDGED AND RESERVED AS LEONIDE BUT SUSPECT THAT SHE WAS DOING DIRECTOR NEWELL'S BIDDING KYLE COLERIDERKRUGH IS HARLEQUIN THE VALET IN TRIUMPH BETTY IN CLOUD NINE'S FIRST ACT AND EDWARD'S HOMOSEXUAL LOVER IN ACT TWO BRUCE ORENDORF IS THE FATUOUS PRINCE AGIS IN THE MARIVAUX THE ANGRY EVIL SERVANT JOSHUA IN ACT ONE AND A TOMBOYISH FOURYEAROLD GIRL IN THE SECOND ACT OF CLOUD NINE JOHN REEGER IS THE ASCETIC PHILOSOPHER THE MACHO COLONIAL ADMINISTRATOR AND HIS HOMOSEXUAL SON LINDA KIMBROUGH IS THE SEXUALLY AWAKENED SPINSTER SISTER THE LESBIAN GOVERNESS AND VICTORIA'S AGING VICTORIAN MOTHER EACH OF THEM AND THE BALANCE OF THE COMPANY WORK EVERY ASPECT OF THEIR BODIES AND VOICES TO DELIVER INTELLIGENT FUNNY THREEDIMENSIONAL CHARACTERS CLOUD NINE DIRECTOR RUDALL HIMSELF PLAYS TWO ROLES DOUBLING AS THE EXECUTIVE DIRECTOR OF COURT THEATRE HE HOPES TO USE THIS FIRST REPERTORY EXPERIENCE AS A SPRINGBOARD TO A MORE PERMANENT TROUPE THESE TWO PLAYS WILL ROTATE UNTIL DEC 12 SEE THEM BOTH IF YOU CAN YOU ARE LIKELY TO COME AWAY SHARING MR RUDALL'S ENTHUSIASM FOR THE REPERTORY CONCEPT 9312030061 931203 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY ELLEN JOAN POLLOCK CORPORATE CLIENTS CAN EXPECT A BARRAGE OF NEW SOLICITATIONS FROM PRIVATE MEDIATION FIRMS WHICH ARE COMPETING MORE INTENSELY THAN EVER TO LURE COMPANIES AWAY FROM THE COURTS THE MERGER THIS WEEK BETWEEN ENDISPUTE INC THE EAST COAST MEDIATION LEADER AND A THRIVING CALIFORNIA MEDIATION SHOP IS LIKELY TO HEIGHTEN THE COMPETITIVE PRESSURES NATIONALLY THE MOVE GIVES ENDISPUTE A MAJOR PRESENCE IN TERRITORY DOMINATED BY ITS WEST COAST COMPETITOR JUDICIAL ARBITRATION & MEDIATION SERVICES INC LAST YEAR JAMS VENTURED INTO ENDISPUTE'S DOMAIN WHEN IT OPENED A NEW YORK OFFICE HOW ALL OF THIS WILL SHAKE OUT IS ANYBODY'S GUESS BUT MUCH IS AT STAKE AS THE TWO MEDIATION POWERHOUSES JOCKEY FOR MARKET SHARE BOTH HAVE SAID THEY WOULD LIKE TO GO PUBLIC PERHAPS AS SOON AS LATE NEXT YEAR AND BOTH HAVE RELIED ON VENTURE CAPITAL TO FUEL GROWTH AND MUST SATISFY INVESTORS ON THEIR BOARDS FOR CLIENTS THE FIGHT MEANS THEY WILL HAVE MORE CHOICES ABOUT HOW TO RESOLVE DISPUTES AND MAY EVENTUALLY SEE MEDIATION PRICES DECLINE BUT COMPANIES ALSO WILL HAVE TO SORT THROUGH AGGRESSIVE AND SOPHISTICATED MARKETING PITCHES BY THE FIRMS TO FIGURE OUT WHAT DIFFERENTIATES ONE FROM ANOTHER SOME DIFFERENCES ARE CLEAR JAMS USES ONLY FORMER JUDGES WHILE ENDISPUTE USES JUDGES LAWYERS AND NONLAWYERS AS MEDIATORS BUT THE SERVICES THEY OFFER ARE SIMILAR ALREADY THE CLIENT LISTS OF THE MAJOR FIRMS OVERLAP BECHTEL GROUP INC AETNA LIFE & CASUALTY CO AND FIREMANS' FUND INSURANCE CO ALL HAVE SENT WORK TO JAMS ENDISPUTE AND BATES EDWARDS GROUP WHICH JOINED FORCES WITH ENDISPUTE THIS WEEK PRICES DON'T VARY MUCH EITHER A STANDARD EMPLOYMENT MEDIATION WOULD COST EACH PARTY 1745 AT ENDISPUTE AND ABOUT 1925 AT JAMS FOR MANY EXECUTIVES AND EVEN INHOUSE LAWYERS MEDIATION REMAINS A MURKY PROCESS RESULTS ARE HARD TO ANALYZE SINCE SETTLEMENTS AREN'T MADE PUBLIC JAMES F SMYTH ENDISPUTE'S MARKETING VICE PRESIDENT EXPLAINS THE PROBLEM THIS WAY MEDIATION IS KIND OF LIKE PSYCHOLOGY EVERYBODY HAS THEIR OWN METHOD AND YOU DON'T KNOW IF YOU'RE GETTING FREUD JUNG OR WHATEVER THE MEDIATION FIRMS OF COURSE ARE EAGER TO HELP COMPANIES SORT IT OUT ENDISPUTE FOR EXAMPLE IS BRINGING OUT A SERIES OF PRODUCTS AIMED AT SIMPLIFYING ITS SERVICES FOR CUSTOMERS ACTUALLY THESE PRODUCTS ARE NO DIFFERENT FROM ENDISPUTE'S REGULAR SERVICES BUT THEY HAVE BEEN TAILORED TO DIFFERENT KINDS OF DISPUTES ENDISPUTE'S EMPLOYMENTDISPUTE PRODUCT FOR INSTANCE FEATURES THREE DIFFERENT MEDIATION OPTIONS STANDARD STREAMLINED OR A MEDIATION/ARBITRATION COMBO A THREEINCHTHICK BINDER USES FLOWCHARTS TO EXPLAIN THESE ALTERNATIVES AND PROVIDES CHECKLISTS TO HELP CLIENTS PREPARE FOR MEDIATIONS MR SMYTH SAYS HE PLANS TO SHRINKWRAP SOME OF THE MATERIAL AND SHIP IT TO CLIENTS FOR MOST BUSINESSPEOPLE USE OF THE WORD PRODUCT WON'T CAUSE A RIOT BUT LAWYERS HATE TO THINK OF THEIR WORK AS A COMMODITY WHEN MR SMYTH FIRST USED THE PWORD AT AN ENDISPUTE BOARD MEETING A SEVERALHOUR ARGUMENT ENSUED HE PREVAILED AND THESE DAYS ENDISPUTE HAS PRODUCT MANAGERS AND PRODUCT TEAMS PLANNING ON ROLLING OUT THREE OR FOUR PRODUCTS A YEAR AS A MARKETING PERSON I'M REALLY TRYING TO MAKE MEDIATION AS TANGIBLE AS POSSIBLE TO CUSTOMERS SAYS MR SMYTH WHO JOINED ENDISPUTE FROM MEAD DATA CENTRAL INC FOR EVERY ONE WHO'S TRIED IT THERE ARE HUNDREDS OUT THERE WHO THINK THIS IS SOME SORT OF VOODOO EVEN THE GIANT AMERICAN ARBITRATION ASSOCIATION THE NONPROFIT ORGANIZATION THAT HAS BEEN IN THE LITIGATIONALTERNATIVE BUSINESS THE LONGEST IS PLAYING THE PRODUCTDEVELOPMENT GAME THE AAA IS NOW ROLLING OUT MEDALOA WHICH STANDS FOR MEDIATIONANDLASTOFFER ARBITRATION THE PROCESS ALLOWS DISPUTING PARTIES TO NARROW THE GAP BETWEEN SETTLEMENT OFFERS THROUGH MEDIATION AND THEN TURN THE PROBLEM OVER TO AN ARBITRATOR TO RENDER A DECISION MEDALOA NOTES AAA PRESIDENT ROBERT COULSON SOUNDS A LOT LIKE ALOHA AND SHOULD BE WRITTEN IN CAPITAL LETTERS IT'S A NEW TAG A NEW IDEA A LOT MAY RIDE ON SUCH MARKETING GIMMICKS AS MEDIATION FIRMS VIE FOR CLIENTS IT'S VERY COMPETITIVE AND WHEN YOU HAVE A VERY COMPETITIVE MARKETPLACE YOU HAVE LOSERS SAYS MR COULSON CALIFORNIA HE POINTS OUT IS CRAWLING WITH COMPETITION THAT'S WHY ANYONE INTERESTED IN MEDIATION WILL BE WATCHING THE DUEL BETWEEN JAMS AND ENDISPUTE JAMS PROJECTING ABOUT 30 MILLION IN REVENUE THIS FISCAL YEAR HAS 21 OFFICES INCLUDING 11 IN CALIFORNIA ENDISPUTE AND BATES EDWARDS HAVE COMBINED REVENUE OF 10 MILLION AND NINE OFFICES BATES EDWARDS CONTRIBUTED FOUR CALIFORNIA OFFICES AND ONE PORTLAND OFFICE ENDISPUTE NOW IS SEEKING APPROXIMATELY 15 MILLION IN CAPITAL TO FUEL ITS EXPANSION THE FIRM IS PLANNING A LOS ANGELES OFFICE AND PHOENIX DENVER ALASKA AND HAWAII ARE OTHER POSSIBILITIES SAYS BATES EDWARDS COFOUNDER JOHN B BATES JR WE'RE NOT AFRAID OF COMPETITION AT ALL BECAUSE THERE'S SO MUCH DEMAND HE SAYS MEANWHILE JAMS PLANS TO MOVE INTO THE MIDWEST AND FLORIDA JAMS PRESIDENT JOHN P UNROE THINKS MORE COMPETITION IS A GOOD THING FOR MEDIATION FIRMS AT LEAST IN THE MEDIUM TERM BECAUSE IT WILL SPREAD THE WORD ABOUT LITIGATION ALTERNATIVES TO COMPANIES IN SEARCH OF CHEAPER QUICKER LITIGATION ALTERNATIVES BUT THE SPECTER OF ROUGH TIMES DOES LOOM AS A REAL POSSIBILITY EVEN FOR MEDIATION FIRMS HEALTHY ENOUGH TO GO PUBLIC JUDICATE INC MADE A BIG SPLASH WHEN IT WAS LAUNCHED IN 1983 IT THEN BECAME THE FIRST MEDIATION FIRM TO GO PUBLIC IN 1985 BUT THINGS HAVE BEEN ROCKY LATELY FOR JUDICATE IT HAS LAID OFF ADMINISTRATIVE AND SUPPORT STAFFERS AND IS SHRINKING COMPETITION EXPLAINS JUDICATE CHAIRMAN VICTOR WANG HAS PUT THE SQUEEZE ON THE TOP LINE IN TERMS OF WHAT YOU CAN CHARGE PER CASE AND LIKEWISE SQUEEZES THE MARGINS 9312030060 931203 BUSINESS BRIEF CIRCUS CIRCUS ENTERPRISES INC THIRDQUARTER EARNINGS FELL REFLECTING ONETIME ITEMS CIRCUS CIRCUS ENTERPRISES INC REPORTED NET INCOME OF 205 MILLION OR 24 CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED OCT 31 WHICH INCLUDED A WRITEOFF OF EXPENSES RELATED TO ITS NEW LUXOR CASINO AND OTHER ONETIME ITEMS A YEAR EARLIER THE LAS VEGAS CASINO COMPANY HAD NET INCOME OF 362 MILLION OR 42 CENTS A SHARE REVENUE ROSE 9 TO 2446 MILLION FROM 2239 MILLION IN LATE OCTOBER CIRCUS HAD SAID RESULTS FOR THE QUARTER WOULD BE WEAKER THAN HAD BEEN EXPECTED SENDING ITS STOCK TUMBLING AND TRIGGERING A BROAD SELLOFF OF OTHER CASINO STOCKS THE QUARTERLY RESULTS INCLUDED A WRITEOFF OF ABOUT 165 MILLION OR 12 CENTS A SHARE AFTER TAXES OF PREOPENING EXPENSES FOR THE 390 MILLION LUXOR CASINO AND A 90 MILLION DOMED ATTRACTION AREA CONNECTED TO THE CIRCUS CIRCUS LAS VEGAS CASINO THE COMPANY ALSO RECORDED AN ADDITIONAL 34 MILLION IN INCOME TAXES AS A ONETIME ADJUSTMENT UNDER NEW TAX LAWS WITHOUT THE PREOPENING EXPENSES AND HIGHER TAXES THE COMPANY SAID NET WOULD HAVE BEEN 40 CENTS A SHARE COMPARED WITH 42 CENTS A SHARE A YEAR AGO 9312030059 931203 ABREAST OF THE MARKET INDUSTRIALS GAIN 503 POINTS AIDED BY OVERSEAS RALLIES OIL PRICE DROP BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES CREPT HIGHER IN TENTATIVE TRADING BEFORE TODAY'S IMPORTANT REPORT ON NOVEMBER EMPLOYMENT CONTINUED STRENGTH IN OVERSEAS STOCK MARKETS AND A SHARP DROP IN OIL WHICH TOOK PRICES TO BELOW 15 A BARREL ITS LOWEST LEVEL SINCE NOVEMBER 1988 ENCOURAGED SOME BUYING ANALYSTS SAID BUT CONCERNS ABOUT THE ECONOMY AND THE DIRECTION OF INTEREST RATES PUT A LID ON STOCK PRICE GAINS AFTER HOVERING AROUND THE 3700 LEVEL FOR MOST OF THE DAY THE DOW JONES INDUSTRIAL AVERAGE CLOSED MODESTLY HIGHER AT 370211 UP 503 POINTS STANDARD & POOR'S 500STOCK INDEX CLIMBED 122 TO 46311 AND THE NASDAQ COMPOSITE INDEX ROSE 292 TO 76673 VOLUME ON THE BIG BOARD SLIPPED TO 2531 MILLION SHARES FROM 2876 MILLION WEDNESDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1168 TO 846 ANALYSTS SAID INVESTORS REFRAINED FROM MAKING BIG BETS ON STOCKS YESTERDAY FEARING THAT TODAY'S JOBS REPORTS COULD OFFER MORE SIGNS OF ECONOMIC STRENGTH THAT PROBABLY WILL SEND INTEREST RATES ROCKETING HIGHER THIS YEAR'S BULL MARKET IN STOCKS HAS BEEN BUILT ON EXPECTATIONS THAT RATES WILL REMAIN LOW THOUGH TRADING IN MOST SECTORS OF THE MARKET WAS LACKLUSTER YESTERDAY ACTIVITY IN RETAIL ISSUES WAS BRISK AS INVESTORS DUMPED MANY STOCKS IN REACTION TO REPORTS ON NOVEMBER SALES LIMITED WAS ONE OF THE MOST HEAVILY TRADED STOCKS ON THE BIG BOARD PLUNGING 3 3/8 TO 18 1/8 THE COLUMBUS OHIOBASED RETAILING CONCERN REPORTED WEDNESDAY THAT SAMESTORE SALES OR SALES IN STORES OPEN A YEAR OR MORE FELL 7 FOR THE FOUR WEEKS ENDED SATURDAY FROM A YEAR AGO AS A RESULT OF CONTINUED SOFTNESS IN THE WOMEN'S APPAREL BUSINESS LIMITED SAID IT EXPECTS ITS EARNINGS FOR THIS FISCAL YEAR TO FALL 4 TO 12 FROM A YEAR AGO IN RESPONSE TO THE NEWS OPPENHEIMER AND SALOMON BROTHERS LOWERED THEIR RATINGS ON LIMITED STOCK DILLARD DEPARTMENT STORES TUMBLED 1 1/8 TO 39 1/2 AFTER REPORTING THAT SAMESTORE SALES WERE FLAT IN NOVEMBER WALMART SLIPPED 5/8 TO 27 7/8 SAMESTORE SALES ROSE 4 LAST MONTH FALLING SHORT OF ANALYSTS' EXPECTATIONS MAY DEPARTMENT STORES FELL 1 1/8 TO 41 1/4 ITS SAMESTORE SALES INCHED UP 21 LAST MONTH BUT GAP EDGED UP 5/8 TO 40 3/4 AFTER REPORTING ITS SAMESTORE SALES ROSE 5 SHARES OF SOME OIL DRILLING AND OIL FIELD EQUIPMENT MAKERS FELL ALONG WITH THE PRICE OF CRUDE OIL HALLIBURTON WAS DOWN 7/8 TO 29 5/8 AND SCHLUMBERGER WAS OFF 5/8 TO 56 7/8 THE MAJOR PETROLEUM COMPANIES THOUGH WERE MIXED CHEVRON FELL 7/8 TO 86 1/8 BUT MOBIL WAS UP 1/4 TO 76 AIRLINES STOCKS GAINED ON HOPES FOR LOWER FUEL PRICES AMR THE PARENT OF AMERICAN AIRLINES SOARED 1 5/8 TO 67 5/8 AND DELTA AIR LINES ROSE 3/4 TO 59 1/2 THE DOW JONES TRANSPORTATION AVERAGE ADDED 706 OR 040 TO 177067 A RECORD FOR THE SECOND STRAIGHT DAY NATIONAL SEMICONDUCTOR SLUMPED 1 1/4 TO 15 3/8 IN HEAVY TRADING SOUNDVIEW FINANCIAL GROUP BEGAN COVERAGE OF NATIONAL WITH A HOLD RECOMMENDATION ITS ANALYST RICK WHITTINGTON SAID HE BELIEVES FISCAL SECONDQUARTER BOOKINGS FELL ABOUT 5 TO 10 FROM THE FIRST QUARTER GENZYME LOST 2 TO 29 ON NASDAQ THE COMPANY SAID THE COST OF PRODUCING THE DRUG CEREDASE MAY RISE 22 MILLION ANNUALLY AFTER THE CLOSE PACTEL OFFERED 60 MILLION SHARES AT 23 A SHARE IN AN INITIAL PUBLIC OFFERING UNDERWRITTEN BY LEHMAN BROTHERS AND SALOMON BROTHERS STRONG INVESTOR DEMAND PROMPTED UNDERWRITERS TO RAISE THE PRICE OF THE OFFERING PACTEL A WIRELESS TELECOMMUNICATIONS CONCERN WAS SPUN OFF BY PACIFIC TELESIS GROUP MEXICAN ISSUES ADVANCED AFTER NEWS THAT CANADIAN PRIME MINISTER JEAN CHRETIEN'S GOVERNMENT PLANS TO SIGN THE NORTH AMERICAN FREE TRADE AGREEMENT ON JAN 1 AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO WERE AMONG THE MOST ACTIVE ON THE BIG BOARD JUMPING 1 5/8 TO 57 3/8 ADRS OF CONSORCIO G GRUPO DINA RACED UP 2 1/2 TO 25 1/4 A SECOND DAY OF GAINS IN TECHNOLOGY AND COMMUNICATIONS COMPANIES HELPED POWER THE NASDAQ STOCK MARKET HIGHER NEWBRIDGE NETWORKS GAINED 2 1/8 TO 56 DSC COMMUNICATIONS 2 3/4 TO 60 1/2 AND MICROSOFT 1 3/8 TO 82 7/8 VOLVO'S AMERICAN DEPOSITARY RECEIPTS SURGED 2 7/8 TO 55 3/8 ON NASDAQ AS THE SWEDISH AUTO MAKER'S PLANS TO MERGE WITH RENAULT CAME APART VOLVO'S MANAGEMENT REPORTLY PRESSURED THE COMPANY'S BOARD TO CANCEL A SHAREHOLDER VOTE ON THE TRANSACTION SEVERAL MAJOR STOCKHOLDERS HAD OPPOSED THE DEAL INTERNATIONAL PAPER SLIPPED 5/8 TO 66 7/8 PAINEWEBBER LOWERED ITS RATING TO UNATTRACTIVE FROM NEUTRAL A NUMBER OF AUTO MAKERS LOST GROUND IN SPITE OF REPORTING ENCOURAGING NEWS CHRYSLER EASED 1/2 TO 53 1/2 ALTHOUGH THE COMPANY INCREASED ITS QUARTERLY DIVIDEND TO 20 CENTS FROM 15 CENTS INVESTORS WIDELY ANTICIPATED THE MOVE AND THUS SOLD THE STOCK AND FORD MOTOR DROPPED 3/8 TO 62 1/4 EVEN AS PAINEWEBBER SENIOR ANALYST STEPHEN GIRSKY SAID THE STOCK IS THE BEST BUY AMONG THE BIG THREE 9312030058 931203 TWA CUTS FARES UP TO 35 FOR TRAVEL IN EARLY 1994 MOUNT KISCO NY TRANS WORLD AIRLINES FIRED AN EARLY SHOT IN WHAT COULD BECOME A FARE WAR NEXT YEAR BY CUTTING DOMESTIC TICKET PRICES AS MUCH AS 35 TWA SAID TICKETS MUST BE PURCHASED BY TUESDAY FOR TRAVEL JAN 6 THROUGH MARCH THE SAVINGS APPLY TO ECONOMY CLASS ONLY AND REQUIRE A SATURDAY NIGHT STAY TRAVEL MUST BE COMPLETED WITHIN 30 DAYS DEPARTURES ON TUESDAYS WEDNESDAYS AND SATURDAYS OFFER THE BEST SAVINGS WITH SMALLER SAVINGS ON OTHER DAYS TRIPS TO HONOLULU AND SAN JUAN PUERTO RICO ARE INCLUDED TWA SAID TWA WHICH EMERGED FROM BANKRUPTCY REORGANIZATION LAST MONTH SAID THE FARE SALE IS INTENDED TO SPARK TRAFFIC IN A TRADITIONALLY SLACK SEASON A SPOKESMAN SAID HE BELIEVED THIS IS THE FIRST SIGNIFICANT FARE INITIATIVE FOR EARLY 1994 BY A MAJOR AIRLINE ADDING THAT TWA'S BOOKINGS FOR THE FIRST QUARTER ARE AHEAD OF LAST YEAR'S LEVELS THE SPOKESMAN SAID THE PROMOTION ALSO IS INTENDED TO CALL ATTENTION TO A NEW JD POWER & ASSOCIATES POLL OF FREQUENT BUSINESS TRAVELERS THAT PLACED TWA AS THE TOPRANKED DOMESTIC CARRIER ON LONG FLIGHTS AND NO 2 AIRLINE ON SHORT FLIGHTS UAL CORP'S UNITED AIRLINES SAID YESTERDAY THAT IT WASN'T AWARE OF TWA'S FARE SALE AND COULDN'T SAY WHETHER IT WOULD MATCH IT OTHER CARRIERS COULDN'T BE REACHED 9312030057 931203 BUSINESS BRIEF DOLE FOOD CO TWO PACKAGEDGOODS UNITS SLATED TO BE CONSOLIDATED DOLE FOOD CO SAID IT WILL CONSOLIDATE TWO PACKAGEDGOODS DIVISIONS TO STRENGTHEN THEIR MARKETING OPERATIONS AND CUT OVERHEAD COSTS SALES AND MARKETING FOR DOLE'S PACKAGEDFOODS DIVISION AND ITS DRIED FRUIT AND NUT DIVISION WILL BE COMBINED IN WESTLAKE VILLAGE CALIF ABOUT 60 JOBS WILL BE AFFECTED BY THE CHANGE THE COMPANY SAID SOME EMPLOYEES IN FRESNO CALIF HEADQUARTERS FOR THE DRIED FRUIT AND NUT DIVISION WILL BE REASSIGNED TO WESTLAKE VILLAGE OTHERS WILL BE DISMISSED OVER THE NEXT YEAR A SPOKESMAN SAID DOLE HAS ABOUT 50000 EMPLOYEES WORLDWIDE THE CONSOLIDATION IS CONSISTENT WITH A SEPTEMBER ANNOUNCEMENT OF A REORGANIZATION OF COMPANYWIDE MARKETING OPERATIONS ALONG GEOGRAPHIC RATHER THAN PRODUCT LINES THE MOVE IS ALSO PART OF A 1993 PLAN TO REDUCE ANNUAL OPERATING COSTS BETWEEN 125 MILLION AND 130 MILLION 9312030056 931203 LEISURE & ARTS BOOKSHELF GOVERNMENT TAKES EVEN WHEN IT GIVES BY HOLMAN W JENKINS JR PROF RICHARD EPSTEIN GOT HIS 15 MINUTES OF TELEVISION FAME WHEN SEN JOE BIDEN WAVED HIS 1985 BOOK TAKINGS IN THE FACE OF CLARENCE THOMAS UNTIL ANITA HILL MATERIALIZED APPARENTLY THE MOST DAMAGING BLOT ON MR THOMAS'S CHARACTER WAS THE POSSIBILITY THAT HE AGREED WITH THE BOOK'S THESIS THAT THE CONSTITUTION'S WORDS ABOUT PROPERTY ACTUALLY MEAN SOMETHING MR EPSTEIN A CONTROVERSIAL THEORIST FROM THE UNIVERSITY OF CHICAGO PROBABLY WON'T LUCK INTO ANY SUCH PLUG FOR HIS LATEST BOOK BUT IT'S SURE TO ROIL THE ACADEMIC WATERS BARGAINING WITH THE STATE PRINCETON UNIVERSITY PRESS 322 PAGES 29 IS ABOUT HOW AND WHY GOVERNMENT ABUSES ITS POWER TO CONFER BENEFITS WHAT IF PENNSYLVANIA PERMITTED DRIVERS TO USE THE HIGHWAYS ONLY IF THEY AGREED TO REFRAIN FROM WATERING THEIR LAWNS ON WEEKDAYS UNDER A PRINCIPLE VOICED AT VARIOUS TIMES BY JUSTICES OLIVER WENDELL HOLMES AND WILLIAM J BRENNAN JR THIS WOULDN'T RAISE ANY CONSTITUTIONAL ALARMS SINCE DRIVERS ARE FREE TO REJECT THE BARGAIN AND STAY OFF THE ROADS BUT MR EPSTEIN WOULD FIND A LOT TO BE ALARMED ABOUT THE GOVERNMENT HAS ALREADY TAKEN THE DRIVERS' MONEY TO BUILD THE ROAD AND NOW IS USING ITS MONOPOLY POSITION TO EXACT FURTHER CONCESSIONS HE'D SUSPECT SOME SORT OF SLIPPERY REDISTRIBUTION PROJECT FOR THE BENEFIT OF AN ORGANIZED INTEREST PERHAPS FARMERS WHO ARE VYING FOR A LARGER SHARE OF THE WATER RESOURCES MR EPSTEIN TROTS OUT DOZENS OF LEGAL EPISODES TO SHOW THAT IN FACT GOVERNMENTAL MUNIFICENCE OFTEN COMES WITH HIDDEN REDISTRIBUTIONIST STRINGS ATTACHED IN THE CASE OF NOLLAN VS CALIFORNIA COASTAL COMMISSION THE COMMISSION MAGNANIMOUSLY GRANTED MR NOLLAN THE RIGHT TO TEAR DOWN HIS DILAPIDATED BEACH HOUSE AND BUILD A BIGGER ONE BUT IT DID SO ONLY AFTER EXTORTING HIS AGREEMENT TO AN EASEMENT ALLOWING THE PUBLIC TO TRAMP ACROSS HIS YARD THE COMMISSION'S ACTION WAS STRUCK DOWN BY THE SUPREME COURT AND RIGHTLY SO IN MR EPSTEIN'S VIEW UNDER THE DOCTRINE OF UNCONSTITUTIONAL CONDITIONS THE STATE HAD NO BUSINESS USING ITS AUTHORITY TO BACK MR NOLLAN INTO A CORNER LEAVING HIM LITTLE REAL CHOICE BUT TO SURRENDER PART OF HIS PROPERTY TO THE COMMUNITY IN THIS ANALYSIS MR EPSTEIN RETURNS TO THE THEME OF EARLIER WORKS NAMELY THAT THE FOUNDING FATHERS WEREN'T KIDDING WHEN THEY PUT ECONOMIC RIGHTS IN THE CONSTITUTION IF GOVERNMENT CAN'T SEIZE PROPERTY THROUGH NAKED COERCION NEITHER CAN IT DO SO THROUGH HARD BARGAINING AS THE MONOPOLY PROVIDER OF LICENSES HIGHWAYS WELFARE CHECKS AND OTHER FAVORS NOWADAYS OF COURSE PROPERTY RIGHTS ARE NO LONGER HELD IN HIGH ESTEEM BY JUDGES THANKS TO A STREAM OF JURISPRUDENCE FLOWING OUT OF THE NEW DEAL BUT THE COURTS MIGHT AT LEAST HAVE SAVED THE UNCONSTITUTIONALCONDITIONS DOCTRINE AS A SECONDBEST TOOL TO LIMIT THE OMINOUS IMPLICATIONS OF THE MODERN ECONOMIC LIBERTIES CASES MR EPSTEIN WRITES OMINOUS HERE REFERS TO THE TENDENCY FOR UNCHECKED GOVERNMENTAL DISCRETION NOW THAT JUDGES REJECT ANY GENERALIZED BRIEF TO PROTECT A COMPETITIVE MARKETPLACE FOR INSTANCE HAVING LET CONGRESS THROW OVER THE FREE LABOR SYSTEM IN FAVOR OF COLLECTIVE BARGAINING JUDGES ARE NOW STUCK WITH A CONSTITUTIONAL WASTELAND IN THE AREA OF LABOR LAW THE GOVERNMENT CAN PUT ITS FINGER ON THE SCALE ANY WAY IT WANTS MR EPSTEIN LAMENTS AT THIS POINT MR EPSTEIN DISCOVERS RELIGION THE LAST LEGAL DIKE AGAINST SEEPING GOVERNMENTAL DISCRETION HE NOTICES THAT JUDGES STILL INVEST THE CONSTITUTION'S CLAUSES ON FREE EXERCISE AND ESTABLISHMENT WITH SERIOUS MEANING AND IN A CONCLUSION HE FINDS REALLY INESCAPABLE GOES ON TO SUGGEST THAT THESE PROHIBIT REDISTRIBUTION IN EITHER DIRECTION BETWEEN RELIGIOUS AND NONRELIGIOUS GROUPS THIS ARGUMENT IF IT CAUGHT ON COULD POLITICALLY SINK THE WELFARE STATE BASED AS IT IS ON REDISTRIBUTION DISGUISED AS INSURANCE HE SUGGESTS THAT THE AMISH SHOULD BE LEGALLY ALLOWED TO DROP OUT OF SOCIAL SECURITY SINCE THEIR FAITH ENJOINS THEM TO TAKE CARE OF THEIR OWN AND THAT UNEMPLOYMENT INSURANCE SHOULD BE ADJUSTED SO SEVENTHDAY ADVENTISTS AND OTHER RELIGIOUS TYPES WHO WON'T WORK ON SATURDAYS PAY HIGHER PREMIUMS THUS AVOIDING A SUBSIDY TO RELIGION YET BECAUSE RELIGIOUS FOLKS ARE LESS LIKELY TO BE FIRED THEY SHOULD ALSO BE CHARGED LOWER PREMIUMS THUS AVOIDING A FINE ON RELIGIOUS BELIEF MR EPSTEIN OSCILLATES BETWEEN GRAND DREAMS AND HUMBLE HOPES WITH HILLARY'S HEALTH CARE COMING DOWN THE PIKE THE WHOLE BUSINESS OF BARGAINING WITH THE STATE IS LIKELY TO BECOME EVEN MORE OMINOUS IMPLICATING NOT JUST THE PROPERTY CLAUSES BUT THE CONSTITUTIONAL GUARANTEE OF LIFE MAYBE THAT'S WHY MR EPSTEIN ENDS WITH A MODEST PLEA FOR AT LEAST PROTECTING THE CULTURE FROM THE ENCROACHING STATE BY GETTING RID OF PUBLIC FUNDING OF THE ARTS LUCKILY MR EPSTEIN CONDUCTS HIS EXCURSION INTO THE LEGALTHEORY STRATOSPHERE WITH PATIENCE AND AN UNPATRONIZING DEFERENCE TO THE FACT THAT FOR THE MOMENT AT LEAST THE READING PUBLIC STILL CONSISTS OF A BARE MAJORITY WHO AREN'T LAWYERS MR JENKINS IS AN EDITORIAL WRITER FOR THE JOURNAL 9312030055 931203 BUSINESS BRIEF BRODERBUND SOFTWARE INC FISCAL FIRSTQUARTER PROFIT PUT AT HIGH END OF FORECAST BRODERBUND SOFTWARE INC SAID IT EXPECTS TO REPORT FISCAL FIRSTQUARTER PROFIT IN THE RANGE OF 60 CENTS TO 63 CENTS A SHARE AT THE HIGH END OF WALL STREET FORECASTS WHICH RANGED FROM 55 CENTS TO 63 CENTS THE NOVATO CALIF MAKER OF EDUCATIONAL SOFTWARE SAID REVENUE IS PROJECTED AT 33 MILLION FOR THE PERIOD BELOW THE ANALYSTS' RANGE OF 34 MILLION TO 39 MILLION A SPOKESWOMAN SAID ANALYSTS HAD OVERBUILT REVENUE EXPECTATIONS BASED ON AN EXTRAORDINARY REVENUE INCREASE IN LAST YEAR'S FIRST QUARTER ENDED NOV 30 WHEN BRODERBUND POSTED PROFIT OF 49 MILLION OR 49 CENTS A SHARE ON REVENUE OF 326 MILLION THE COMPANY RELEASED ITS OUTLOOK AFTER THE CLOSE OF NASDAQ STOCK MARKET TRADING WHICH SAW BRODERBUND SHARES CLOSE DOWN 2125 AT 4725 SLUGGISH SALES AT SPECIALTY SOFTWARE RETAILERS MAY BE CONTRIBUTING TO A BROAD SLUMP AMONG PRODUCERS' SHARE PRICES OVERALL AN INDUSTRY SOURCE SAID 9312030054 931203 PROFIT ROSE 20FOLD IN YEAR FOR ROYAL BANK OF SCOTLAND BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ROYAL BANK OF SCOTLAND GROUP PLC ANNOUNCED A MORE THAN 20FOLD INCREASE IN PRETAX EARNINGS FOR ITS LATEST FISCAL YEAR AND SAID IT PLANS A STEADY STREAM OF INVESTMENT IN TECHNOLOGY AS PART OF A STRATEGY TO BOOST PROFIT FURTHER AND BEAT COMPETITORS THE COMPANY AIMS TO BECOME THE BESTPERFORMING FINANCIALSERVICES GROUP IN THE UK BY 1997 ROYAL BANK'S CHIEF EXECUTIVE GEORGE MATHEWSON TOLD A NEWS CONFERENCE ROYAL BANK AND ITS CONTINENTAL EUROPEAN BANKING PARTNERS SPAIN'S BANCO SANTANDER CREDIT COMMERCIAL DE FRANCE AND BANCO DE COMERCIO E INDUSTRIA IN PORTUGAL PLAN SHORTLY TO UNVEIL AN EXTENSION TO THEIR INTERBANK ONLINE SYSTEM FOR INSTANTANEOUS CROSSBORDER ACCOUNTMANAGEMENT SERVICES AND MONEY TRANSFERS TO INCLUDE KREDIETBANK NV OF BELGIUM AND AT LEAST ONE BANK IN THE US IBOS HAS BEEN TARGETED MAINLY AT PERSONAL BANKING CUSTOMERS BUT FROM NEXT MONTH IT IS TO INCLUDE CORPORATE SERVICES THOUGH MR MATHEWSON DECLINED TO GIVE DETAILS THE IBOS PARTNERS ARE UNDERSTOOD TO BE NEGOTIATING WITH POSSIBLE PARTICIPANTS IN GERMANY ROYAL BANK SAID ITS PRETAX PROFIT FOR THE YEAR ENDED SEPT 30 ROSE TO 2652 MILLION 3918 MILLION FROM 126 MILLION REFLECTING LOWER PROVISIONS FOR BAD DEBTS AND AN ANNOUNCED TRIPLING OF EARNINGS AT ITS DIRECT LINE MOTOR AND HOMEINSURANCE SUBSIDIARY THE BANK SAID IT WOULD PAY A FINAL PERSHARE DIVIDEND OF EIGHT PENCE 12 CENTS UP FROM SIX PENCE A YEAR EARLIER RAISING THE TOTAL DIVIDEND FOR THE YEAR 25 TO 11 PENCE PER SHARE OPERATING PROFIT BEFORE PROVISIONS ROSE 30 TO A RECORD 597 MILLION WHILE PROVISIONS FOR BAD AND DOUBTFUL DEBTS FELL 26 TO 293 MILLION NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS ROSE TO 1387 MILLION FROM 52 MILLION ASSETS ROSE 5 TO 363 BILLION 5663 BILLION MR MATHEWSON SAID ROYAL BANK REDUCED ITS COSTEARNINGS RATIO THE RATIO OF OPERATING COSTS TO GROSS OPERATING INCOME BY FOUR PERCENTAGE POINTS TO 584 TOTAL EXPENSES ROSE 10 TO 837 MILLION BUT WERE OFFSET BY A 17 INCREASE IN TOTAL INCOME TO 14 BILLION NET INTEREST INCOME ROSE 9 TO 837 MILLION WHILE OTHER OPERATING INCOME INCLUDING DIRECT LINE AND FEES AND COMMISSIONS ON BANKING TRANSACTIONS ROSE 32 TO 590 MILLION MR MATHEWSON SAID ROYAL BANK INTENDS TO MAINTAIN THE GROWTH OF ITS NONINTEREST INCOME WHICH IN 199293 ACCOUNTED FOR 41 OF TOTAL INCOME THE BANK PLANS TO CONTINUE TO INVEST IN TECHNOLOGICAL AND OPERATIONAL IMPROVEMENTS AT ALL LEVELS ROYAL BANK ALSO PLANS TO EXPAND ITS DIRECT BANKING TELEPHONEBANKING SERVICE WHICH HAS BEEN OPERATING AS A PILOT WITH 10000 CUSTOMERS IN SELECTED AREAS OF SCOTLAND BY THIS TIME NEXT YEAR OFFICIALS SAID THE BANK EXPECTS TO HAVE 250000 CUSTOMERS LINKED TO DIRECT BANKING 9312030052 931203 VOLVO REVOLT KILLS MERGER WITH RENAULT SWEDISH AUTO MAKER'S CHAIRMAN QUITS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL AB VOLVO CANCELED ITS PLAN TO MERGE WITH RENAULT OF FRANCE AND CREATE THE WORLD'S SIXTHLARGEST AUTO MAKER PROMPTING THE RESIGNATION OF VOLVO'S CHAIRMAN THE COLLAPSE OF THE MERGER WHICH HAD BEEN HAILED AS A MILESTONE FOR CONSOLIDATION OF EUROPE'S FRAGMENTED AUTO INDUSTRY AS IT ENTERS A NEW ERA OF BAREFISTED COMPETITION UNDERSCORES THE ROADBLOCKS TO SUCH EFFORTS A SPREADING REBELLION AMONG BIG INSTITUTIONAL SHAREHOLDERS HAD MADE VIRTUALLY CERTAIN THAT THE MARRIAGE WITH RENAULT WOULDN'T GO AHEAD ON SCHEDULE BUT IN A SURPRISING MOVE VOLVO'S ENTIRE TOP MANAGEMENT JOINED REBELLIOUS SHAREHOLDERS IN DEMANDING THAT THE BOARD SCUTTLE THE PLAN EQUALLY STUNNING WAS THE IMMEDIATE RESIGNATION OF PEHR GYLLENHAMMAR THE SWEDISH COMPANY'S AUTOCRATIC CHAIRMAN WHO HAD STAUNCHLY SUPPORTED COOPERATION WITH RENAULT AND FOUR OTHER VOLVO DIRECTORS IN A PARTING SHOT AFTER 22 YEARS AS VOLVO'S PRESIDENT OR CHAIRMAN MR GYLLENHAMMAR PREDICTED THAT THE FAILURE OF THE MERGER WILL DOOM THE CURRENT ALLIANCE BETWEEN THE TWO COMPANIES UNDER A THREEYEAROLD PACT RENAULT AND VOLVO OWN STAKES IN EACH OTHER'S CAR AND TRUCK DIVISIONS AND HAVE COMBINED KEY FUNCTIONS SUCH AS PURCHASING QUALITY CONTROL AND SOME DEVELOPMENT PROGRAMS THE ALLIANCE MAY NOT DIE IMMEDIATELY HE SAID BUT THE DAMAGE DEALT TO RELATIONS WITH RENAULT AND WITH FRANCE IS SO SEVERE THAT THE ALLIANCE IS DESTINED TO WITHER AWAY IN A TERSE STATEMENT RENAULT SAID IT DEPLORES VOLVO'S FAILURE TO RATIFY THE MERGER THE FRENCH COMPANY CONTINUED TO INSIST THAT THE LINKUP WAS JUSTIFIED IN ECONOMIC AS WELL AS INDUSTRIAL TERMS AND WAS FAIR FROM A FINANCIAL STANDPOINT RENAULT OFFICIALS WEREN'T AS PESSIMISTIC AS MR GYLLENHAMMAR ABOUT PROSPECTS FOR CONTINUED COOPERATION HOWEVER A RENAULT SPOKESMAN WARNED THAT MUCH OF THE MOMENTUM OF THE ALLIANCE WAS NOW LOST THE OBJECTIVE THE GOALS OF OUR COOPERATION HAVE BEEN CHANGED RENAULT NOW HAS TO EXAMINE THE POSSIBILITIES TO ENABLE IT TO SECURE ITS FUTURE ON ITS OWN THE SPOKESMAN ADDED WE WILL CONTINUE TO LOOK FOR PARTNERS FOR DIFFERENT THINGS THE FAILURE OF THE MERGER WILL HAVE LITTLE EFFECT ON THE US CAR MARKET WHERE VOLVO IS A SMALL PLAYER AND RENAULT NO LONGER HAS A PRESENCE ANALYSTS SAID HOWEVER THE MERGER MIGHT HAVE HELPED THE COMBINED COMPANY EXPAND IN THE US BY PROVIDING IT WITH ADDITIONAL MODELS FROM RENAULT SAID DAVID COLE DIRECTOR OF THE UNIVERSITY OF MICHIGAN'S OFFICE FOR THE STUDY OF AUTOMOTIVE TRANSPORTATION THE PLANNED MERGER OF RENAULT AND VOLVO HAD WON PRAISE FROM INDUSTRY ANALYSTS BECAUSE IT PAIRED SPECIALIST VOLVO AND VOLUME CAR MAKER RENAULT VOLVO IS STRONG IN NORTHERN EUROPE AND RENAULT IN THE SOUTH THE COMBINED COMPANY WOULD HAVE HAD 12 OF THE EUROPEAN CAR MARKET TYING IT FOR THIRD PLACE THERE IN HEAVY TRUCKS IT WOULD HAVE BEEN THE WORLD'S SECONDBIGGEST PLAYER THE COMBINED COMPANY HAD PRO FORMA 1992 SALES OF 241 BILLION FRENCH FRANCS 4056 BILLION AFTER RACKING UP SIX STRAIGHT YEARS OF PROFIT RENAULT IS EXPECTED TO STAY IN THE BLACK THIS YEAR ALTHOUGH PRETAX PROFIT PLUNGED 87 IN THE FIRST HALF TO 730 MILLION FRENCH FRANCS FROM 544 BILLION WITH THE BLEAK EUROPEAN MARKET VOLVO WHICH BUILT ITS REPUTATION ON BOXY CARS KNOWN FOR SAFETY AND HIGH PRICES HAD BEEN REPORTING LOSSES UNTIL RECENTLY BUT IN THE FIRST HALF ITS PRETAX PROFIT REBOUNDED TO 380 MILLION KRONOR 4473 MILLION FROM A YEAREARLIER LOSS OF 103 MILLION KRONOR COLLAPSE OF THE PLAN SUGGESTS THAT EUROPEAN CONSOLIDATION WON'T BE AS SWIFT OR SMOOTH AS MANY HAD HOPED IT MAY HAVE BEEN AN INVESTOR UPRISING AND POLITICS IN SWEDEN THAT CAUSED THIS DEAL TO COLLAPSE BUT THE ULTIMATE PROBLEM WAS SUSPICION ABOUT RENAULT AS A STATEOWNED FRENCH COMPANY SAID DANIEL T JONES AN AUTOINDUSTRY SPECIALIST AND PROFESSOR AT BRITAIN'S CARDIFF BUSINESS SCHOOL SKEPTICISM ABOUT JOINING FORCES WITH A GOVERNMENTOWNED PARTNER WON'T DISAPPEAR HE ADDED BECAUSE ANY KIND OF CONTROL BY STATES LOCAL GOVERNMENTS OR TRADE UNIONS SIMPLY IS INCOMPATIBLE WITH FREEDOM TO TAKE DECISIONS BASED ON INDUSTRIAL LOGIC BESIDES POLITICS DOMINANCE BY FAMILY OWNERS REMAINS ANOTHER OBSTACLE TO BUILDING EUROPEAN AUTO CHAMPIONS DR JONES WARNED WE'VE SEEN TOO MANY EXAMPLES WHERE PEOPLE LIKE ITALY'S AGNELLIS AND SWEDEN'S WALLENBERGS HAVE BLOCKED PROPOSED ALLIANCES BECAUSE OF UNWILLINGNESS TO LOSE FAMILY POWER FOR NOW MANAGEMENT OF 80YEAROLD VOLVO WILL BE MORE CONCERNED WITH PUTTING ITS HOUSE IN ORDER THAN WITH EUROPEAN CONSOLIDATION DEPARTING WITH MR GYLLEHAMMAR WERE SEVERAL INTERNATIONAL EXECUTIVES HE RECRUITED TO VOLVO'S BOARD INCLUDING FORMER RENAULT CHAIRMAN RAYMOND LEVY AND BARONESS LYDIA DUNN CHIEF EXECUTIVE SOEREN GYLL WHO JOINED VOLVO LAST YEAR AFTER A LONG TENURE WITH THE CAR MAKER'S FOOD AND DRUG AFFILIATE PROCORDIA AB LACKS FIRSTHAND EXPERIENCE IN THE AUTO INDUSTRY AND MANY VOLVO EMPLOYEES WHO WERE DEEPLY SPLIT OVER THE RENAULT MERGER PLAN REMAIN LOYAL TO MR GYLLENHAMMAR WHO THEY CREDIT FOR MUCH OF THE COMPANY'S SUCCESS DURING THE 1980S VOLVO'S REMAINING NINE DIRECTORS ALSO OFFERED THEIR RESIGNATIONS BUT AGREED TO STAY ON UNTIL A NEW BOARD CAN BE ELECTED AT AN EXTRAORDINARY GENERAL MEETING VOLVO SAID THAT MEETING WOULD BE HELD AS SOON AS POSSIBLE BUT DIDN'T SPECIFY A DATE BO RYDIN A SWEDISH PULP AND PAPER EXECUTIVE AND VOLVO'S CURRENT VICE CHAIRMAN WILL BE ACTING CHAIRMAN UNTIL THE MEETING VOLVO'S EXTRAORDINARY GENERAL MEETING PREVIOUSLY SCHEDULED FOR TUESDAY WAS CANCELED IN HEAVY TRADING THURSDAY VOLVO'S BENCHMARK CLASS B SHARES SURGED TO 458 KRONOR 5391 UP 14 KRONOR AUTO ANALYSTS SAID RENAULT WOULDN'T HAVE MUCH DIFFICULTY PROCEEDING WITHOUT VOLVO ON THE CAR SIDE OF ITS BUSINESS LIKE ITS COMPETITORS IT HAS BEEN HIT WITH LOSSES IN ITS UNIT VOLUME SALES BECAUSE OF THE SHARPEST DOWNTURN IN THE EUROPEAN CAR INDUSTRY SINCE WORLD WAR II BUT AS MR GYLLENHAMMAR NOTED AT HIS NEWS CONFERENCE RENAULT IS ONE OF THE FEW EUROPEAN VOLUME CAR PRODUCERS LIKELY TO REMAIN PROFITABLE THIS YEAR BUT ON THE TRUCK SIDE RENAULT STANDS TO BE A BIG LOSER IF COOPERATION WITH VOLVO UNRAVELS SAID JOHN LAWSON A LONDONBASED ANALYST AT CONSULTING FIRM DRI EUROPE FOR VOLVO BY CONTRAST THE LOSS IS ALL IN CARS MR LAWSON SAID IT'S GOOD NEWS FOR COMPETITORS TOGETHER RENAULT AND VOLVO WOULD HAVE BEEN A STRONGER COMPANY 9312030051 931203 PARAMOUNT'S BOARD SAW BIG POTENTIAL IN PICKING VIACOM CONSULTANT'S REPORT FORECAST TENFOLD GAIN IN PROFITS SUPERIOR VALUE FOR HOLDERS BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC'S BOARD IN EMBRACING AN ACQUISITION OF THE COMPANY BY VIACOM INC RELIED PARTLY ON A CONSULTANT'S STUDY THAT SHOWED THE COMBINED COMPANIES GENERATING ALMOST 10 TIMES THE PROFIT AND OVER 3 BILLION MORE SHAREHOLDER VALUE THAN A COMBINATION WITH QVC NETWORK INC THE CONTROVERSIAL REPORT BY BOOZ ALLEN & HAMILTON INC IS IN A BLIZZARD OF DOCUMENTS SUBMITTED TO THE DELAWARE SUPREME COURT BY PARAMOUNT AND VIACOM THE COMPANIES ARE APPEALING A DELAWARE JUDGE'S RULING LAST WEEK AGAINST THEIR ACQUISITION AGREEMENT WHETHER THE QVC OR VIACOM OFFER GIVES HOLDERS THE HIGHER LONGTERM VALUE IS AN IMPORTANT ISSUE IN THE BATTLE FOR PARAMOUNT BECAUSE BOTH BIDDERS ARE PROPOSING TO PAY 49 OF THE PURCHASE PRICE IN SECURITIES THUS PARAMOUNT SHAREHOLDERS WILL HAVE AN ECONOMIC STAKE IN THE SURVIVING COMPANY IN SPURNING A HIGHER OFFER FROM QVC PARAMOUNT HAS ARGUED THAT A DEAL WITH VIACOM IS MORE ATTRACTIVE BECAUSE IT WILL DELIVER MORE VALUE TO SHAREHOLDERS OVER THE LONG HAUL PARAMOUNT HAD CITED THE REPORT IN ITS DEFENSE AGAINST QVC'S CHARGES THAT PARAMOUNT DISCRIMINATED AGAINST QVC'S OFFER BUT THE DELAWARE JUDGE CONCLUDED THAT THE REPORT WAS NOT A SUFFICIENTLY RELIABLE BASIS FOR COMPARING LONGTERM VALUES OF THE RIVAL OFFERS MOREOVER PARAMOUNT'S FINANCIAL ADVISER LAZARD FRERES & CO HAS POINTED OUT TO DIRECTORS THAT THE STOCK MARKET HAS VALUED A QVCPARAMOUNT COMBINATION MORE FAVORABLY THAN THE BOOZALLEN ANALYSIS WOULD SUGGEST PARAMOUNT AND BOOZ ALLEN DECLINED TO COMMENT YESTERDAY BOOZ ALLEN WHICH PRESENTED THE REPORT TO DIRECTORS AT AN OCT 24 BOARD MEETING CONCLUDED THAT A PARAMOUNTVIACOM COMBINATION COULD PRODUCE 255 MILLION OF PROFIT FROM COST SAVINGS IMPROVEMENTS IN CURRENT BUSINESS AND NEW BUSINESSES THAT COULD ONLY BE CREATED THROUGH THE MERGER BY CONTRAST A QVCPARAMOUNT COMBINATION WOULD GENERATE 27 MILLION OF PROFIT THE REPORT SAID JACK JACOBS VICE CHANCELLOR OF THE DELAWARE COURT WHO RULED LAST WEEK THAT PARAMOUNT ILLEGALLY REJECTED QVC'S OFFER POINTED OUT THAT BOOZ ALLEN HAD DESCRIBED ITS REPORT AS A FIRST CUT AT EVALUATING THE TWO OFFERS AND WHILE BOOZ ALLEN EVALUATED CONFIDENTIAL VIACOM DATA IN PREPARING THE REPORT IT REVIEWED NO SUCH INFORMATION FROM QVC IN ITS PENDING APPEAL OF THE LOWERCOURT DECISION PARAMOUNT IN ITS WRITTEN ARGUMENT SAYS THE VICE CHANCELLOR WAS WRONG IN HIS VIEW OF THE REPORT PEOPLE CLOSE TO PARAMOUNT SAID YESTERDAY THAT BOOZ ALLEN COMPLETED A FINAL REPORT THIS WEEK THAT REFLECTS CONFIDENTIAL INFORMATION FROM QVC THEY ADDED THAT THE CONCLUSIONS WERE UNCHANGED 9312030050 931202 SOME OF THE PUNS ARE HALFBAKED AND THE PLACE IS GOING TO THE DOGS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL KANSAS CITY MO AT THE KC K9 BAKERY FOR DOGS IT'S ALL BONE APPETIT FOR STARTERS THERE ARE SIX VARIETIES OF FRESHBAKED DOG BISCUITS PEANUT BUTTER OATMEAL RAISIN HONEY GRANOLA COCONUT ALMOND CAROB CHIP AND VEGETABLE BEEF THEY'RE 399 A POUND BUT FOR THE VORACIOUS 10POUND BAGS ARE ALSO AVAILABLE BONESHAPED BISCUITS TOO MUNDANE HOW ABOUT THOSE THAT LOOK LIKE MINI CHEESE PIZZAS OR BARBECUED RIBS OTHER TREATS INCLUDE YOGURTFILLED SANDWICH COOKIES PETIT FOURS AND SOMETHING CALLED DOGGIE DOUGHNUTS NOT TO MENTION BIRTHDAY CAKES IN CARROT BANANA OR CAROBCHIP FLAVORS AND SMALLER VERSIONS CALLED PUPCAKES THIS IS PUREBREAD STUFF ALL ITEMS ARE MADE WITHOUT PRESERVATIVES SODIUM SUGAR OR FILLERS SOMETIMES FOUND IN NATIONALBRAND DOG BISCUITS ANOTHER DIFFERENCE THE TREATS DON'T SMELL OR TASTE LIKE ORDINARY DOG FOOD WE ARE NOT HEALTHNUT FANATICS OWNERS MARK BECKLOFF AND DAN DYE SAY IN A BROCHURE DESIGNED TO CONVINCE SKEPTICS BUT WE ARE CONCERNED AS BOTH DOG LOVERS AND DOG OWNERS ABOUT WHAT WE FEED OUR GIRLS THEIR GIRLS ARE SARAH A LABRADOR DOTTIE A DALMATIAN AND GRACIE A GREAT DANE THE KC K9'S FARE IS SOLELY FOR DOGS INDEED CUSTOMERS ARE INVITED TO BRING THEIR POOCHES AND THEIR PUNS THE OWNERS FOR INSTANCE ARE THINKING ABOUT A LINE OF GREAT DANISH OTHER ARFUL POSSIBILITIES BEAGLES WITH CREAM CHEESE BLUEBERRY MUT TINS PUPPYSEED ROLLS AND POUND CAKE ALL MADE OF COURSE WITH FIDOUGH A FEW CRITICS HAVE GROWLED ABOUT THE WHOLE IDEA OF A BAKERY FOR DOGS MR BECKLOFF SAYS ADDING PEOPLE WITH CATS THINK WE DISCRIMINATE AGAINST THEM WE DON'T BUT CATS ARE SO FINICKY ONE CUSTOMER BARKED UP THE WRONG TREAT MR BECKLOFF RECALLS THE WOMAN WHO CAME IN FOR A CAKE SHE'D ORDERED FOR NORMA WHAT KIND OF DOG IS NORMA HE ASKED OH SHE'S NOT A DOG THE WOMAN REPLIED A FRIEND THEN WHAT BREED DOES NORMA HAVE MR BECKLOFF INQUIRED NORMA DOESN'T HAVE A DOG THE PUZZLED WOMAN REPLIED AT WHICH POINT MR BECKLOFF THOUGHT HE HAD BETTER ASK WHY SHE WAS BUYING A CAKE FOR A DOG THE WOMAN LOOKED HORRIFIED OH NO SHE SAID EXPLAINING THAT SHE AND A FRIEND HAD STOPPED IN RECENTLY AND PURCHASED SOME HEARTSHAPED COOKIES TO EAT AT THE MOVIES THEY LIKED THEM SO MUCH THEY DECIDED TO ORDER A CAKE 9312030049 931203 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A DISAPPOINTING AUCTION OF 16 PRIME PROPERTIES IN BERLIN AND EASTERN GERMANY RAISED QUESTIONS ABOUT INVESTOR CONFIDENCE IN WHAT IS TO BE THE SEAT OF GOVERNMENT ONLY SEVEN OF THE OFFERINGS WERE SOLD AND JUST ONE REACHED THE MINIMUM EXPECTED PRICE THE PROPERTIES INCLUDED APARTMENT BUILDINGS IN BERLIN LEIPZIG AND ROSTOCK AND VILLAS IN BERLIN AND ITS SUBURBS INCLUDING POTSDAM AS THE AUCTION ATTRACTED FEW BIDS MOST OF THE SALES WERE NEGOTIATED LATER WITH THE OWNERS THE RESULTS WERE VIEWED AS A BLOW TO BERLIN AND ITS HOPES TO ATTRACT INTERNATIONAL INVESTORS TO HELP REBUILD THE ONCEDIVIDED CITY INTO A MAJOR EUROPEAN CAPITAL UNCERTAINTY ABOUT THE CAPITAL'S PLANNED MOVE TO BERLIN FROM BONN BY THE YEAR 2000 AND MOUNTING COSTS ALREADY HAD MADE INVESTORS JITTERY AND BERLIN WAS SNUBBED IN ITS BID TO HOST THE OLYMPICS IN 2000 THE AUCTION ALSO COULD SIGNAL BAD NEWS FOR SCORES OF INVESTORS INCLUDING CORPORATE GIANTS THAT BOUGHT BERLIN PROPERTY AFTER REUNIFICATION IN 1989 REAL ESTATE PRICES HAVE SINCE SOARED ON EXPECTATIONS DEMAND WOULD RISE WITH THE GOVERNMENT'S MOVE TAIWAN REJECTED A US REQUEST TO CUT TARIFFS BUT OFFERED TO DISCUSS THE ISSUE NEXT YEAR TAIWAN APPLIED IN 1990 TO JOIN THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND LAST WEEK THE US LISTED 2785 PRODUCTS ON WHICH IT WANTS TAIPEI TO REDUCE TARIFFS AS A CONDITION FOR MEMBERSHIP IN THE GLOBAL TRADE GROUP THE US HAD SET TODAY AS A DEADLINE FOR TAIWAN TO LOWER LEVIES AS MUCH AS 50 ON 699 IMPORTS INCLUDING AUTOS STEEL AND PHARMACEUTICALS TO HELP REDUCE ITS TRADE SURPLUS WITH THE US THAT WOULD CUT TAIWAN'S TARIFF REVENUE BY 17 OR 675 MILLION A YEAR THE EUROPEAN COMMUNITY COMMISSION PROPOSED LIBERALIZING THE SATELLITECOMMUNICATIONS EQUIPMENT AND SERVICES MARKET IT WANTS TO HAVE EC TELECOMMUNICATIONS LAW APPLY TO SATELLITES ALLOWING PRIVATE OPERATORS TO OFFER SATELLITEBASED SERVICES IN ALL 12 EC COUNTRIES IN COMPETITION WITH NATIONAL OPERATORS EQUIPMENT SUPPLIERS COULD SELL PRODUCTS DIRECTLY TO CONSUMERS THE PLAN EXCLUDES TELEPHONE VOICE SERVICES AND DIRECT TELEVISION BROADCASTING LINKS THE COMMISSION HOPES TO PUT THE CHANGES INTO EFFECT BY THE END OF NEXT YEAR HOSPITALS AND HEALTH CENTERS IN PORTUGAL WERE PARALYZED AS MORE THAN 20000 OF THE COUNTRY'S ESTIMATED 26000 PHYSICIANS BEGAN A TWODAY STRIKE PROTESTING PAY AND GOVERNMENT HEALTH POLICY THE WALKOUT WHICH LEFT ONLY HOSPITAL EMERGENCY ROOMS OPEN WAS THE LATEST IN A SERIES OF LABOR PROTESTS PLAGUING THE CENTERRIGHT GOVERNMENT DOCTORS WANT PAY SCALES REVISED THEY ALSO OPPOSE GOVERNMENT PLANS TO RELOCATE ABOUT 1000 HOSPITAL SPECIALISTS TO SMALL HEALTH CENTERS IN PORTUGAL'S POOR INTERIOR REGIONS SOME OF WHICH HAVE ONLY ONE DOCTOR FOR EVERY 5000 RESIDENTS COMPARED WITH A 1TO250 RATIO IN CITIES INFLATION IN THE RUMP YUGOSLAV STATE GREW 07 AN HOUR AND 20190 LAST MONTH AN ANNUAL RATE OF 286 BILLION PERCENT BELGRADE OFFICIALS CALCULATED THEY ESTIMATED LOSSES AT 20 BILLION FROM SANCTIONS IMPOSED 18 MONTHS AGO TO FORCE THE SERBDOMINATED FORMER YUGOSLAVIA TO END ITS BACKING FOR REBEL SERBS IN BOSNIA AND CROATIA TO COVER CIVILWAR AND UNEMPLOYMENT EXPENSES THE GOVERNMENT HAS INDISCRIMINATELY PRINTED MONEY MAKING ITS DINAR EFFECTIVELY WORTHLESS A NEW 500 MILLIONDINAR BANKNOTE IS CURRENTLY VALUED AT 6 PER CAPITA GROSS NATIONAL PRODUCT HAS PLUMMETED TO 250 FROM 3000 AND WAGES TO 15 A MONTH FROM 500 IN 1991 BREAD WAS RATIONED IN THE TAJIK CAPITAL OF DUSHANBE AFTER THE GOVERNMENT SOUGHT PROTECTION OF BAKERIES AND BREAD TRUCKS BY TROOPS FROM THE COMMONWEALTH OF INDEPENDENT STATES DEPLOYED FOLLOWING A YEARLONG CIVIL WAR FLOUR ALREADY WAS RATIONED BREAD IS A MAIN SOURCE OF NUTRITION IN TAJIKISTAN AS FOOD STORES OFTEN ARE EMPTY BREAD SUPPLIES HAVE BEEN DISRUPTED BY SPECULATORS AND BY SHORTAGES OF FUEL NEEDED TO TRANSPORT FLOUR TO BAKERIES AND BREAD TO STORES BREAD IS IN SHORT SUPPLY IN AT LEAST THREE OTHER FORMER SOVIET REPUBLICS AZERBAIJAN ARMENIA AND GEORGIA RUSSIA SOON WILL SELL GOLD DOMESTICALLY TO RAISE 975 MILLION TO PAY FOR ADDITIONAL GOVERNMENT SPENDING THIS YEAR THE REPUBLIC WITH ABOUT 300 METRIC TONS OF GOLD RESERVES HAS RAISED CASH OFTEN BY SELLING GOLD BUT OUTSIDE RUSSIA UNDER THE NEW PLAN THE FINANCE MINISTRY WILL OFFER GOLD THROUGH THE CENTRAL BANK FOR FOREIGN CURRENCY WHICH IT WILL CONVERT TO RUBLES ON RUSSIAN CURRENCY EXCHANGES PROCEEDS WILL BE USED MAINLY TO COVER FARM ENERGY AND MILITARY SUBSIDIES THE GOLD SALES ARE RUSSIA'S SECOND MAJOR STEP TO DEVELOP A DOMESTIC GOLD MARKET FORBIDDEN UNDER THE FORMER SOVIET REGIME IN SEPTEMBER A 12 BILLION BOND ISSUE WAS BACKED BY 100 TONS OF GOLD A THREEWEEK STATE OF EMERGENCY WAS DECLARED ON THE RESORT ISLANDS OF ST KITTS AND NEVIS THE SMALLEST CARIBBEAN NATION AFTER DEMONSTRATORS DEMANDED NEW LEGISLATIVE ELECTIONS TO FORM A MAJORITY GOVERNMENT BUSINESSES AND GOVERNMENT OFFICES WERE CLOSED POLICE REPORTED LOOTING CHINA HAS SHARPLY INCREASED JAMMING OF FOREIGN BROADCASTS IN MANDARIN THE COUNTRY'S DOMINANT TONGUE BRITISH BROADCASTING CORP SAID JAMMING BEGAN DURING 1989 PRODEMOCRACY PROTESTS IN BEIJING 9312030048 931203 ECONOMY FED SAYS CLINTON BANKREGULATION PLAN WOULD LIMIT ITS ABILITY TO HANDLE CRISES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BOARD CONTENDS THAT THE CLINTON ADMINISTRATION'S PROPOSAL TO CONSOLIDATE BANK REGULATORS WOULD IMPEDE THE CENTRAL BANK'S ABILITY TO PREVENT FINANCIAL CATASTROPHES THE PLAN WHICH THE ADMINISTRATION ANNOUNCED LAST WEEK WOULD MEASURABLY LIMIT OUR ABILITY TO MANAGE A CRISIS SAID DAVID MULLINS THE FED'S VICE CHAIRMAN IN AN INTERVIEW HE CITED THE 1987 STOCK MARKET CRASH AS AN EXAMPLE HIS COMMENTS SIGNAL THE START OF A MAJOR TURF BATTLE BETWEEN THE FED AND THE ADMINISTRATION OVER THE REGULATION OF THE BANKING SYSTEM ALTHOUGH THE ADMINISTRATION'S PLAN HAS STRONG SUPPORT FROM THE CHAIRMEN OF THE HOUSE AND SENATE BANKING COMMITTEES THE FED'S DETERMINATION TO FIGHT BY USING THE SPECTER OF FINANCIAL CRISIS COULD RAISE OBSTACLES FOR THE CLINTON ADMINISTRATION UNDER THE ADMINISTRATION'S PLAN THE FED WOULD CEDE ITS POWER TO REGULATE ABOUT 1000 BANKS AND 6300 BANK HOLDING COMPANIES TO A NEW FEDERAL BANKING COMMISSION THAT FIVEMEMBER COMMISSION ALSO WOULD TAKE OVER REGULATORY POWER EXERCISED BY THE FEDERAL DEPOSIT INSURANCE CORP THE COMPTROLLER OF THE CURRENCY AND THE OFFICE OF THRIFT SUPERVISION THE ADMINISTRATION WOULD GIVE THE FED ACCESS TO ALL INFORMATION COLLECTED BY THE NEW COMMISSION AND THE CENTRAL BANK WOULD BE ABLE TO PARTICIPATE IN THE EXAMINATIONS OF AT LEAST TWO DOZEN MAJOR BANKS WE HAVE GONE TO GREAT LENGTHS TO INCORPORATE THE FED'S CONCERNS SAID FRANK NEWMAN TREASURY UNDERSECRETARY FOR FINANCE IN FACT HE ARGUED THE NEW SETUP WOULD INCREASE THE NUMBER OF MAJOR BANKS THE FED MONITORS BUT MR MULLINS SAID THE FED WOULD LOSE MUCH OF ITS CLOUT WE DON'T WANT TO BE OBSERVERS MR MULLINS SAID AN OBSERVER'S ROLE ISN'T SUFFICIENT TO DISCHARGE OUR RESPONSIBILITIES FED CHAIRMAN ALAN GREENSPAN AND OTHER FED MEMBERS PLAN TO MAKE THE SAME ARGUMENTS TO PARTICIPANTS IN THE FINANCIAL MARKETS AND TO CONGRESS OUR FINANCIAL SYSTEM IS FASTPACED ENORMOUSLY CREATIVE MR MULLINS SAID IT'S DESTINED TO HAVE NEAR MISSES WITH SOME FREQUENCY BESIDES THE 1987 STOCK MARKET CRASH HE CITED THE BANKRUPTCY OF A MAJOR JUNK BOND DEALER IN 1989 AND THE COLLAPSE OF REAL ESTATE PRICES WE HAVE AVOIDED SERIOUS SYSTEMIC DAMAGE THE FED VICE CHAIRMAN ARGUED I DON'T THINK THAT WE COULD HAVE GOTTEN THROUGH 1987 WITHOUT THE RISK OF MUCH GREATER DAMAGE IF WE HAD BEEN JUST ONSITE OBSERVERS LIKE UN OBSERVERS THE ADMINISTRATION'S PLAN SEEKS TO STREAMLINE BANK REGULATION BY CUTTING OVERLAPPING RESPONSIBILITIES FED OFFICIALS AGREE THAT THE SYSTEM CAN BE IMPROVED BUT THEY BELIEVE THE ADMINISTRATION'S PLAN GOES TOO FAR THE CENTRAL BANK CAN STOP LIQUIDITY PROBLEMS OF INSTITUTIONS THAT ARE FUNDAMENTALLY SOUND MR MULLINS SAID BUT I DON'T KNOW HOW WE CAN FEEL COMFORTABLE THAT AN INSTITUTION IS FUNDAMENTALLY SOUND UNLESS WE HAVE ONSITE RESPONSIBILITY FOR THE BANK'S FINANCIAL CONDITION FED OFFICIALS ALSO ARGUE THE ADMINISTRATION'S PLAN PLACES TOO MUCH POWER IN THE HANDS OF A REGULATORY CZAR HOW RESPONSIVE WOULD ONE MASSIVE AGENCY BE TO CHANGES IN THE MARKETPLACE MR MULLINS ASKED THE FED WANTS CONTINUING RESPONSIBILITY FOR THE 1000 BANKS IT CURRENTLY REGULATES A SLICE IT SAYS IS LARGE ENOUGH TO GIVE IT A GOOD FEEL FOR WHAT'S HAPPENING IN THE ECONOMY IT ALSO WANTS CONTROL OVER MAJOR BANK HOLDING COMPANIES THAT PLAY AN IMPORTANT ROLE IN FINANCING WALL STREET'S OPERATIONS AND MOVING MONEY AROUND THE WORLD MR NEWMAN SAYS THE ADMINISTRATION IS WILLING TO NEGOTIATE HE ARGUES THAT NOTHING IN THE ADMINISTRATION'S PLAN WOULD REDUCE THE FED'S ABILITY TO PROVIDE CREDIT IN CRISES OR AT OTHER TIMES NOR WOULD IT LIMIT THE FED'S CONTROL OVER THE PAYMENTS SYSTEM BY WHICH BANKS MOVE ABOUT 1 TRILLION A DAY AROUND THE WORLD HE NOTED THAT WHAT ENABLED THE CENTRAL BANK TO CONTAIN THE DAMAGE OF THE 500POINT STOCK MARKET DROP ON OCT 19 1987 WAS ITS INTIMATE UNDERSTANDING OF THE CREDIT RELATIONSHIPS BETWEEN BANKS AND BROKERAGE FIRMS OF THE RULES FOR SETTLING AND FINANCING TRADES OF SECURITIES COMMODITIES AND FOREIGN EXCHANGE AND OF HOW FUNDS FLOW IN AND OUT OF BANKS AT VARIOUS TIMES OF DAY IT'S COMPLICATED STUFF MR NEWMAN SAID NOBODY ELSE KNOWS HOW TO DO IT BETTER THAN THE FED BUT HE'S CONFIDENT THAT THE ADMINISTRATION'S PLAN WON'T COMPROMISE THE FED'S POWERS NOBODY HERE WANTS TO CREATE A MONSTER THAT DOESN'T WORK HE SAID THE FED ALSO CONTENDS THAT IT'S A MISTAKE TO SEVER BANK REGULATION FROM MANAGEMENT OF THE ECONOMY THROUGH MONETARY POLICY IF A FINANCIAL DISTURBANCE CAUSES EVEN A SMALL RECESSION THE COSTS COULD EXCEED SEVERAL SAVINGSANDLOAN BAILOUTS MR MULLINS SAID REFERRING TO THE 200 BILLION THAT TAXPAYERS WILL PAY TO PROTECT DEPOSITS IN FAILED THRIFTS 9312030047 931203 PEPPERAND SALT FIRST LOVES ARE QUITE HARD TO FORGET QUITE TRUE OF FIRST DIVORCES HE WITH HIS PRIDE LOWFAT SALTINES SAFECRACKERS 9312030045 931203 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PET FOOD WAREHOUSE INC AN OFFERING OF 20 MILLION TO 25 MILLION OF COMMON SHARES PETROLEUM HEAT & POWER CO AN OFFERING OF 75 MILLION OF SUBORDINATED DEBENTURES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP WONDERWARE CORP AN OFFERING OF TWO MILLION COMMON SHARES WITH AN OVERALLOTMENT OF 300000 SHARES VIA MONTGOMERY SECURITIES AND HAMBRECHT & QUIST INC 9312030044 931203 BUSINESS BRIEF BTR PLC REXNORD TO BE PURCHASED IN DEAL FOR 414 MILLION BTR PLC A BRITISH INDUSTRIAL PRODUCTS COMPANY SAID ITS US UNIT AGREED TO BUY MILWAUKEEBASED REXNORD CORP FOR ABOUT 414 MILLION OR 2250 A SHARE AS PART OF ITS PLAN TO ACQUIRE REXNORD THE COMPANY'S BTR DUNLOP HOLDINGS INC UNIT AGREED DEFINITIVELY TO PURCHASE FAIRCHILD CORP'S 44 STAKE IN REXNORD FOR 182 MILLION REXNORD A MAKER OF MECHANICALTRANSMISSION PARTS HAS ABOUT 184 MILLION SHARES OUTSTANDING THE PURCHASE PLAN IS SUBJECT TO REGULATORY APPROVALS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY REXNORD SHARES SOARED 350 OR 19 TO 2175 FAIRCHILD WITH INTERESTS IN AEROSPACE AND INDUSTRIAL PRODUCTS SAID IT WOULD RECORD A 133 MILLION PRETAX GAIN IN ITS FISCAL SECOND QUARTER ENDING DEC 31 FROM SELLING ITS STAKE IN REXNORD IF THE SALE IS COMPLETED BEFORE THE END OF THE YEAR FAIRCHILD SAID MOST OF THE GAIN WOULD BE USED TO PAY DOWN DEBT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY FAIRCHILD JUMPED 625 CENTS OR 19 TO 3875 9312030043 931203 POLITICS & POLICY FBI INVESTIGATES NASA AND CONTRACTORS FOR KICKBACKS RELATED TO SHUTTLE FLIGHTS BY JOE DAVIDSON AND BARBARA ROSEWICZ STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT IS INVESTIGATING ALLEGATIONS OF KICKBACKS AND OVERBILLING IN THE US SPACE PROGRAM FEDERAL LAWENFORCEMENT OFFICIALS SAID THE PROBE CALLED LIGHTNING STRIKE BEGAN IN SPRING 1992 IT INCLUDED A STING OPERATION IN WHICH AGENTS OF THE FEDERAL BUREAU OF INVESTIGATION SET UP A PHONY COMPANY THAT ALLEGEDLY BRIBED NATIONAL AERONAUTICS AND SPACE ADMINISTRATION EMPLOYEES TO HELP THE COMPANY GET SPACEAGENCY CONTRACTS A NUMBER OF NASA EMPLOYEES INCLUDING AN UNIDENTIFIED ASTRONAUT AND CONTRACTORS INCLUDING A MARTIN MARIETTA CORP UNIT PREVIOUSLY OWNED BY GENERAL ELECTRIC CO WERE DRAWN INTO THE SCAM ACCORDING TO INVESTIGATORS THEY SAID PROSECUTORS PLAN TO GO TO A GRAND JURY TO SEEK CRIMINAL CHARGES PROSECUTORS MAY SEEK MORE THAN A DOZEN INDICTMENTS AGAINST CONTRACTORS AND INDIVIDUALS INCLUDING TWO FORMER GE EMPLOYEES FOR ACTIVITIES THAT DEFRAUDED THE GOVERNMENT OF MILLIONS OF DOLLARS SAID ONE LAWENFORCEMENT OFFICIAL A FOCAL POINT OF THE INVESTIGATION IS NASA'S LIFESCIENCES DIVISION WHICH ARRANGES TO FLY EXPERIMENTS ON THE SPACE SHUTTLE TO TEST THE EFFECTS OF WEIGHTLESSNESS ON HUMANS AND OTHER ORGANISMS IN THE STING AN AGENT POSED AS A BUSINESSMAN TRYING TO GET THE DIVISION TO PURCHASE A BOGUS LITHOTRIPTOR WHICH USES ULTRASOUND TO DISSOLVE KIDNEY STONES TO FLY ON A SHUTTLE MISSION ACCORDING TO GOVERNMENT OFFICIALS KNOWLEDGEABLE ABOUT THE INVESTIGATION JUSTICE DEPARTMENT OFFICIALS ARE UPSET THAT WORD OF THE INVESTIGATION LEAKED THEY SAID THE OPERATION HADN'T BEEN SHUT DOWN AND COMPLAINED THAT A KEY PORTION OF THE PROBE WAS JEOPARDIZED THE INVESTIGATION WAS REPORTED WEDNESDAY BY NBC NEWS A CIVIL PORTION OF THE INQUIRY APPARENTLY CONCERNS ATTEMPTS BY THE GOVERNMENT TO RECOUP LOSES THAT MAY HAVE OCCURRED FROM OVERBILLING ON NASA CONTRACTS IT ISN'T CLEAR HOW THIS PORTION OF THE INVESTIGATION IS RELATED TO THE STING A SPOKESMAN FOR GE BASED IN FAIRFIELD CONN REFERRED CALLS TO MARTIN MARIETTA OF BETHESDA MD MARTIN MARIETTA PURCHASED GE'S GOVERNMENTSERVICES BUSINESS WHICH HAD CONTRACTS WITH NASA AND ITS AEROSPACE BUSINESS FOR 3 BILLION IN APRIL JIM TIERNEY A MARTIN MARIETTA SPOKESMAN SAID WHAT I CAN TELL YOU IS WE ARE COOPERATING FULLY AND SUPPORTING THE GOVERNMENT IN ITS INVESTIGATION INVESTIGATORS SAID THE ELABORATE SCAM INCLUDED HIRING A FORMER NASA ADMINISTRATOR JAMES BEGGS AS A CONSULTANT TO TRY TO PEDDLE THE KIDNEYSTONE DEVICE TO THE SPACE AGENCY MR BEGGS WHO WAS UNAWARE THE PROJECT WAS A RUSE UNTIL THE NEWS BROKE THIS WEEK SAID THE FIRM THAT HIRED HIM IN JULY CALLED ITSELF SOUTHERN TECHNOLOGIES BASED IN ATLANTA AND ASKED HIM TO HELP WRITE AN UNSOLICITED BID TO NASA SEEKING 500000 FROM NASA'S LIFESCIENCES DIVISION TO TEST THE ULTRASOUND DEVICE HE SAID COMPANY OFFICIALS TOOK HIM TO AN ELECTRONICS PLANT BASED IN COLUMBIA MD AND SHOWED HIM THE PURPORTED DEVICE ALTHOUGH IT DIDN'T WORK IN THE TEST DEMONSTRATION NASA NEVER ACCEPTED THE PROJECT AND THE FIRM CANCELED ITS CONTRACT WITH HIM EARLY THIS YEAR HE SAID MR BEGGS SAID THAT IT APPEARED TO HIM TO BE A ROUTINE CASE OF A SMALL COMPANY SEEKING GOVERNMENT WORK AND THAT HE HAD SEEN NOTHING IMPROPER NASA REPEATEDLY HAS COME UNDER CRITICISM FOR LOOSE CONTRACT MANAGEMENT WITH SOME 85 OF ITS 14 BILLION BUDGET GOING TO CONTRACTORS NASA'S PROCUREMENT PRACTICES WERE RECENTLY IDENTIFIED BY CONGRESS'S GENERAL ACCOUNTING OFFICE AS ONE OF 17 AREAS IN WHICH THE GOVERNMENT FACES A HIGH RISK OF MISMANAGEMENT AND ABUSE NASA'S INSPECTOR GENERAL IS CONDUCTING MORE THAN 400 CRIMINALFRAUD INVESTIGATIONS THROUGHOUT THE AGENCY THE FBI PROBE IS UNUSUAL BECAUSE OF THE ELABORATE STING IN WHICH ONE GOVERNMENT AGENCY TARGETED ANOTHER GOVERNMENT AGENCY INCREASINGLY THOUGH LAW ENFORCERS HAVE BEEN USING SUCH TECHNIQUES AS STINGS AND WIRETAPS GENERALLY USED IN FIGHTING ORGANIZED CRIME TO ROOT OUT WHITECOLLAR CRIME INCLUDING PROCUREMENT IN GOVERNMENT AGENCIES THE BIGGEST SUCH FBI PROBE IN RECENT YEARS WAS THE ILL WIND INVESTIGATION OF BRIBERY CORRUPTION AND INFLUENCE PEDDLING AT THE PENTAGON 9312030042 931203 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON FACES TOUGH CHOICES AS DECISIONS NEAR ON NEXT YEAR'S BUDGET THE PRESIDENT BEGINS MEETING WITH AGENCY HEADS THOUGH THE FIRST SESSION WAS CANCELED WEDNESDAY AFTER HE PULLED A BACK MUSCLE WHILE JOGGING HIS HEALTHCARE PLAN'S PROPOSED SPENDING ON STARTUP COSTS PUBLIC HEALTH AND VETERANS' CARE RUNS INTO CONGRESSIONAL SPENDING LIDS ONE OPTION EXEMPT THE HEALTH PLAN FROM THE CAPS BECAUSE BY WHITE HOUSE PROJECTIONS IT REDUCES THE DEFICIT BUDGETEERS DON'T COUNT ON A BOOMING ECONOMY AN UPDATED WHITE HOUSE ECONOMIC FORECAST SEES SLOW STEADY GROWTH AND A GRADUAL DROP IN JOBLESSNESS BUT A PREDICTION THAT INFLATION WILL AVERAGE 35 THROUGH THE 1990S IS LOWERED INSIDERS PREDICT LOTS OF USER FEES BUT FEW TAX INCREASES THESE FOLKS ARE MORE AFRAID OF THE TWORD THAN BUSH WAS SAYS ONE VETERAN BUREAUCRAT SENS KERREY AND DANFORTH WHO HEAD CLINTON'S COMMISSION ON ENTITLEMENT SPENDING AND TAX REFORM MAY NAME FORMER BUSH TAXAIDE FRED GOLDBERG AS CHIEF OF STAFF HOPES ARE DIM FOR AN EARLY END TO MILITARY CONTROL OF HAITI US OFFICIALS AT A MEETING HERE TODAY WILL TRY TO PERSUADE PRIME MINISTER MALVAL A HAITIAN MODERATE TO CHANGE HIS PLANS TO RESIGN THE US VOWS TO KEEP THE PRESSURE ON HAITI'S MILITARY BUT SOME OFFICIALS WONDER IF IT WILL BE WILLING TO KEEP UP THE UNIMPOSED FUEL EMBARGO IF IT LEADS TO MASS HUNGER OFFICIALS REVIEW WAYS TO KEEP FOOD AID FLOWING AS THE OIL CRUNCH TIGHTENS CLINTON OFFICIALS RESIST CALLS BY ARISTIDE AND MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS FOR A FULL EMBARGO ON HAITI FEARING CHAOS AND A FLOOD OF REFUGEES TO THE US THEY ALSO ARE COOL TO AN IDEA FLOATED BY SOME MEMBERS OF HAITI'S UPPER CLASS TO REMOVE HAITI'S MILITARY HEAD IF THE US WOULD FORM A NEW GOVERNMENT WITHOUT ARISTIDE CONGRESSIONAL IRE PUTS THE DEMOCRATIC NATIONAL COMMITTEE ON THE HOT SEAT DEMOCRATIC LAWMAKERS FUME THAT MOST OF THE 19 MILLION SPENT BY THE DNC IN ITS FIRST SIX MONTHS UNDER CLINTON WENT TO PROMOTE HIS PROGRAMS THE WHITE HOUSE VIRTUALLY TAKES OVER THE DNC AND GIVES CHAIRMAN DAVID WILHELM 60 DAYS TO MAKE MAJOR CHANGES OVERRIDING HIS TOP CHOICE THEY DICTATE THAT THE NATIONAL EDUCATION ASSOCIATION'S DEBRA DELEE BE HIRED AS THE PARTY'S POLITICAL STRATEGIST TO KEEP HIS JOB WILHELM MUST PERSUADE DEMOCRATIC LAWMAKERS THAT THE DNC CARES ABOUT THEIR REELECTION NEXT YEAR HE QUICKLY HIRES COORDINATORS FOR CAMPAIGNS IN KEY STATES HE MAY EVEN INVITE CLINTON NEMESIS JESSE JACKSON TO HELP REGISTER VOTERS GOP HOUSE LEADERS WRITE TO CLINTON TO COMPLAIN THAT THE DNC HAS SENT MEMOS URGING ITS OPERATIVES TO DISRUPT REPUBLICAN HEALTHCARE TOWN MEETINGS NEW DEMOCRATS THE DEMOCRATIC LEADERSHIP COUNCIL GEARS UP TO DEVELOP A NATIONWIDE NETWORK OF ACTIVISTS TO PUSH ITS MODERATE NEW DEMOCRAT APPROACH ON VARIOUS ISSUES SUCH AS WELFARE REFORM ONE TARGET THE GROUP HIRES TWO ANALYSTS TO FORM A POLICY AGENDA FOR THE STATE OF CALIFORNIA DO AS I SAY CLINTON WHILE URGING CAMPAIGNFINANCE REFORM SPEAKS AT DEMOCRATIC FUNDRAISERS THIS WEEKEND PROCEEDS FROM A HOLLYWOOD DINNER COSTING AT LEAST 25000 A COUPLE WILL GO TO THE KIND OF SOFT MONEY ACCOUNTS THAT THE CLINTON PLAN WOULD CURB ANOTHER FUNDRAISER SATURDAY IS AT SUPERAGENT MICHAEL OVITZ'S OFFICE LOBBYIST BASHING HOUSE DEMOCRATS AND REPUBLICANS PLAN TO CUT LOBBYISTS OUT OF THEIR ISSUES RETREATS NEXT MONTH LOBBYISTS USED TO UNDERWRITE THESE CONFABS AT POSH RESORTS BUT NOW HOUSE MEMBERS WILL PAY 100 THEMSELVES TO ATTEND MEETINGS AT WASHINGTONAREA CONFERENCE CENTERS THIS IS A BROADSCALE ATTACK COMPLAINS LLOYD MEEDS A FORMER LEGISLATOR TURNED LOBBYIST SON OF STAR WARS CLINTON OFFICIALS IN MEETINGS NEXT WEEK IN EUROPE BEFORE JANUARY'S NATO SUMMIT WILL ASK EUROPEAN ALLIES TO SHARE THE COST OF DEVELOPING BALLISTICMISSILE DEFENSES CONGRESS IS BALKING AT CONTINUING TO PAY THE 3 BILLIONAYEAR COST FOR THE SYSTEM WHICH IS A SMALLER VERSION OF REAGAN'S STAR WARS ASPIN MOVES TO EXPAND THE MILITARY'S ROLE IN DOMESTIC AFFAIRS THE PENTAGON CHIEF APPROVES A PLAN TO CREATE AN OFFICE FOR NONTRADITIONAL DEFENSE EFFORTS SUCH AS COUNSELING TROUBLED TEENS OR PROVIDING IMMUNIZATION SERVICES BY 1997 THE PENTAGON PLANS TO OPERATE JUNIOR ROTC PROGRAMS IN 3000 HIGH SCHOOLS FOCUSING FIRST ON THE INNER CITY A PILOT PROGRAM IS CREATED TO SEE IF MILITARY TRAINING CAN GIVE DISCIPLINE AND LIFE SKILLS TO DROPOUTS ASPIN'S PLAN WHICH COULD BE USED TO TRY TO THWART DEEPER BUDGET CUTS HAS THE STRONG BACKING OF SENATE ARMED SERVICES CHAIRMAN NUNN BUT MANY MILITARY OFFICERS FEAR THE NEW MOVES WILL DEGRADE DEFENSE READINESS AND SOAK UP INCREASINGLY LARGER SHARES OF THE DEFENSE BUDGET IT SHOULD BE RENAMED THE DEPARTMENT OF DEFENSE HEALTH EDUCATION AND WELFARE GRUMBLES A DEFENSE OFFICIAL MINOR MEMOS WHO SAYS THE JAPANESE WON'T BUY AMERICAN AN EMBASSY PARTY FOR THE EMPEROR'S BIRTHDAY INCLUDED BUD LIGHT SEN PRYOR DEMANDS A POSTAL SERVICE APOLOGY AFTER 40000 PIECES OF 1992 CHRISTMAS MAIL TO ARKANSAS AND TENNESSEE WERE DISCOVERED TO HAVE BEEN MISPLACED FOR THE PAST YEAR WHITE HOUSE AIDES CONSIDERED ATTACKING NAFTAFOE REP BONIOR OF MICHIGAN BEFORE THE CRUCIAL VOTE BUT HILLARY RODHAM CLINTON STOPPED IT BECAUSE HE HAS BACKED HEALTHCARE REFORM 9312030041 931203 FLORIDA ACCUSES WALMART IN GRAYMARKET GOODS CASE IN A STATE COURT MOTION SEEKING TO ENFORCE A SUBPOENA FLORIDA'S ATTORNEY GENERAL ACCUSED WALMART STORES INC OF SELLING INFERIOR GRAY MARKET SEIKO WATCHES AND OF FALSELY TELLING CUSTOMERS THE WATCHES CARRIED SEIKO WARRANTIES GRAY MARKET GOODS ARE THOSE MADE ABROAD FOR SALE ABROAD BUT IMPORTED INTO THE US WITHOUT THE MANUFACTURER'S CONSENT AND SOLD AT DISCOUNTED PRICES WHILE SELLING GRAYMARKET WATCHES IS LEGAL SEIKO CORP OF TOKYO SAID WATCHES MADE FOR SALE OUTSIDE THE US ARE OF LOWER QUALITY THAN THE WATCHES IT MAKES FOR SALE HERE AND SEIKO WON'T HONOR WARRANTIES ON GRAYMARKET WATCHES LES GARRINGER DIRECTOR OF THE ECONOMIC CRIMES DIVISION AT THE FLORIDA ATTORNEY GENERAL'S OFFICE SAID WALMART MISLED CUSTOMERS BY SAYING ITS WATCHES HAD WARRANTIES AND BY FALSELY IMPLYING THEY WERE EQUAL IN QUALITY TO WATCHES SOLD BY AUTHORIZED SEIKO DEALERS WALMART ISN'T AN AUTHORIZED SEIKO DEALER MR GARRINGER ADDED MR GARRINGER SAID WALMART'S REPLY TO A SEPT 1 SUBPOENA SEEKING INFORMATION ON ITS WATCH SALES WAS WHOLLY UNRESPONSIVE LEADING THE ATTORNEY GENERAL TO FILE A MOTION YESTERDAY IN STATE CIRCUIT COURT IN LEON COUNTY FLA ASKING FOR AN ORDER COMPELLING WALMART TO RESPOND A WALMART SPOKESWOMAN WOULDN'T COMMENT ON THE ALLEGATIONS SAYING THE COMPANY HADN'T BEEN SERVED WITH THE MOTION SHE SAID THAT AFTER CALLS FROM REPORTERS YESTERDAY WALMART CONTACTED THE ATTORNEY GENERAL'S OFFICE AND ASSURED THEM WE WOULD WORK WITH THEM AND RESPOND TO THEIR QUESTIONS AS BEST WE CAN 9312030040 931203 EUROPE'S COOKIE MAKERS CROSS BORDERS AND PUSH NEW PANEUROPEAN GOODIES BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS EUROPEAN COOKIE TASTES ARE CONVERGING WHILE CONSUMERS ARE BAKING LESS AND SNACKING MORE COOKIE MANUFACTURERS ARE PUSHING TRADITIONAL NATIONAL PRODUCTS ACROSS BORDERS AND LAUNCHING NEW PANEUROPEAN VARIETIES IN DENMARK SUPERMARKET SALES OF COOKIES JUMPED 15 IN THE 12 MONTHS THROUGH AUGUST FROM THE PREVIOUS YEAR ACCORDING TO MARKETRESEARCH FIRM AC NIELSEN NIELSEN SAYS THE GROWTH ALMOST EXCLUSIVELY WAS TRIGGERED BY UNITED BISCUITS HOLDINGS PLC'S INTRODUCTION OF ITS MCVITIE'S BRAND COOKIES IN THE COUNTRY SINCE ITS LAUNCH IN EARLY 1992 MCVITIE'S HAS CONQUERED A 21 SHARE OF THE DANISH MARKET PEOPLE'S BISCUIT TASTES ARE LESS TRADITIONAL AND ARE CONVERGING MUCH FASTER THAN IN OTHER FOOD AREAS SAYS PETER MENSING A FOOD EXPERT WITH MANAGEMENT CONSULTANTS BOOZ ALLEN & HAMILTON LTD IN THE NETHERLANDS WITH LITTLE OPPORTUNITY FOR EXPANSION IN EXISTING MARKETS WE HAVE TO EXPLORE NEW MARKETS SAYS PETER NELLESEN MARKETING DIRECTOR WITH GERMANY'S BAHLSEN KEKSFABRIK KG A BRAND ALSO FOUND ON US SUPERMARKET SHELVES BEYOND ITS HOME MARKET BAHLSEN HOLDS LEADING POSITIONS IN AUSTRIA SWITZERLAND AND LUXEMBOURG IT RECENTLY SECURED A NICHE FOR ITS CHOCOLATECOATED CONTINENTAL SPECIALTIES IN BRITAIN THE COMPANY SAYS THAT FOR COST AND EFFICIENCY IT IS PLANNING TO MARKET ITS CURRENT AND NEW COOKIES IN MORE EUROPEAN MARKETS BAHLSEN'S ORIENTATION MIGHT BECOME MORE INTERNATIONAL EVEN FASTER IF RUMORS OF A TAKEOVER BY A MULTINATIONAL FOOD GIANT BECOME REALITY EUROPE'S LARGEST COOKIE MAKER BSN SA OF FRANCE EXPANDED THE FRENCH FLAVOR IN THE EUROPEAN MARKET BY BUYING GENERAL BISCUITS IN 1986 AND ACQUIRING THE EUROPEAN COOKIE BUSINESS OF NABISCO CURRENTLY A UNIT OF RJR NABISCO INC THREE YEARS LATER SIMILARLY BRITAIN'S UNITED BISCUITS BOUGHT THE DUTCH SWEETS COMPANY VERKADE AND OXFORD BISCUITS OF DENMARK AND FURTHER TAKEOVERS ARE IMMINENT PREDICTED A FEBRUARY REPORT BY BRITISH MARKETRESEARCH FIRM ERC STATISTICS INTERNATIONAL SPAIN'S RELATIVELY YOUNG MARKET FOR SWEET PREMIUM COOKIES IN PARTICULAR INVITES FOREIGN EXPANSION THE STUDY SAYS TO BE SURE DISTINCT REGIONAL PALATES STILL ABOUND THROUGHOUT EUROPE IN SPAIN COOKIES STILL ARE CONSIDERED BREAKFAST FOOD WHILE DUTCH SWEETS LOVERS NIBBLE THEM WITH COFFEE AT NIGHT AND FRENCH PARENTS BUY THEM FOR THEIR CHILDREN DANISH SHOPPERS TRADITIONALLY BUY SEMISWEET BUTTER COOKIES WHILE BRITONS PREFER MORE FILLING STARCHIER VARIETIES AND GERMANS INDULGE IN RICHER TREATS BUT ANALYSTS PREDICT INTERNATIONAL BRANDS INCREASINGLY WILL DOMINATE THE COOKIE MARKET ONE OF THE TRUE BELIEVERS IN A COMMON EUROPEAN COOKIE PALATE IS EDWARD S MOERK PRESIDENT OF BISCUITS DELACRE THE EUROPEAN COOKIE BUSINESS OF US FOOD MAKER CAMPBELL SOUP CO IN SEPTEMBER 1992 THE COMPANY SUCCESSFULLY LAUNCHED MAISON DELACRE A EUROPEAN VERSION OF ITS PEPPERIDGE FARM COOKIES SUPPORTED BY INSTORE PROMOTIONS AND A GLOSSY ADVERTISING CAMPAIGN ON SATELLITE TELEVISION THE PRODUCT SPORTS THE SAME PACKAGING AND IMAGE IN ALL EUROPEAN MARKETS IN GERMANY NIELSEN'S RESEARCH SHOWS A 27 INCREASE IN DELACRE'S SALES IN THE FIRST HALF OF 1993 FROM A YEAR EARLIER BUT THAT FIGURE INCLUDES DELACRE'S UPSCALE ASSORTMENT BOXES IN ADDITION TO THE MAISON VARIETY SOLD IN A SQUARE PAPER BAG PANEUROPEAN BRANDS TEND TO BE PREMIUM PRODUCTS AIMED AT THE EDUCATED AND OFTEN MORE AFFLUENT VIEWERS OF INTERNATIONAL SATELLITE TV DELACRE IS TAKING THE TOP 5 OF THE MARKET SAYS HARTWIG CONZELMANN MANAGING DIRECTOR OF UNITED BISCUITS' MCVITIES DIVISION IF I REALLY WANT TO REACH MASS MARKETS IT'S MORE DIFFICULT HE SAYS WHILE MOST PREMIUM PRODUCTS CARRY INTERNATIONAL BRAND NAMES LOWER MARKET SEGMENTS ARE INCREASINGLY DOMINATED BY THE CHEAPER HOUSE BRANDS OF NATIONAL RETAIL CHAINS YOU HAVE TO INNOVATE AS A MARKET LEADER SAYS DIRK JACXSENS MARKETING MANAGER AT CORONALOTUS NV A BELGIAN COMPANY THAT MARKETS CORONA TREATS IN FRANCE BRITAIN AND THE BENELUX COUNTRIES FOR CHRISTMAS THE COMPANY LAUNCHED A CHOCOLATE VERSION OF ITS SPECULOOS GINGERBREAD COOKIES BAHLSEN MEANWHILE IS PLANNING TO LAUNCH TEDDIES CREMEFILLED COOKIES IN BEAR SHAPES DESIGNED TO APPEAL TO CHILDREN THE COMPANY ALSO IS TESTING SMALL PACKAGES TO TAP INTO THE SNACK MARKET AND HAS LAUNCHED A LARGER ONEKILOGRAM 22POUND COOKIE PACKAGE SIMILAR TO DELACRE'S THIS YEAR ONE ALSO HAS TO BE WILLING TO STEAL GOOD PRODUCTS FROM COMPETITORS SAYS BAHLSEN'S MR NELLESEN 9312030039 931203 BLURRED PICTURE SONY LOSES SERVICES OF VISIONARY FOUNDER AT A CRITICAL JUNCTURE MORITA IS STRICKEN AS FIRM IS STRIVING TO MELD PARTS INTO A MULTIMEDIA WHOLE AUDITIONING US PARTNERS BY DAVID P HAMILTON AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL JUST AS IT PREPARES TO CHART A WAY THROUGH THE TURBULENT CONVERGENCE OF COMMUNICATIONS TECHNOLOGIES SONY CORP HAS LOST AT LEAST FOR A TIME ITS MOST EXPERIENCED NAVIGATOR THE COMPANY SAID YESTERDAY THAT ITS COFOUNDER AND CHAIRMAN AKIO MORITA HAD SUFFERED A CEREBRAL HEMORRHAGE AND UNDERGONE BRAIN SURGERY IN TOKYO TUESDAY MR MORITA A PIONEER IN CONSUMER ELECTRONICS AND ONE OF JAPAN INC'S MOST VISIBLE INTERNATIONAL SPOKESMEN HASN'T YET REGAINED FULL CONSCIOUSNESS SONY SAID THE TIMING COULD HARDLY BE WORSE WHILE MR MORITA NOW 72 PASSED ALONG MUCH OF THE DAYTODAY RESPONSIBILITY FOR RUNNING SONY MORE THAN FOUR YEARS AGO TO PRESIDENT NORIO OHGA HE REMAINS VERY MUCH SONY'S MAN OF VISION AND NEVER BEFORE HAS SONY NEEDED KEEN LEADERSHIP SO ACUTELY DESPITE ITS PROVEN ABILITY TO INNOVATE IN CONSUMER ELECTRONICS AND ITS ACQUISITION OF MAJOR MUSIC AND MOVIE COMPANIES SONY HAS BY AND LARGE FAILED TO MESH ITS DISPARATE CORPORATE UNITS INTO A HARMONIOUS WHOLE AS THE MULTIMEDIA FUTURE BECKONS AND CONSUMER ELECTRONICS AND ENTERTAINMENT INCREASINGLY MERGE SONY MUST MAKE ITS COMPLEX PARTS WORK TOGETHER OR RISK BEING LEFT OUT OF THE GAME SONY IS AT A CRITICAL TIME SAYS MICHAEL Y YOSHINO A HARVARD BUSINESS SCHOOL PROFESSOR WHO PREPARED A 1990 CASE STUDY ON THE COMPANY AND HAS KNOWN MR MORITA FOR 25 YEARS OF THE JAPANESE ELECTRONICS GIANTS SONY IS IN THE BEST POSITION TO BECOME AN INTEGRATED COMPANY BUT JUST HAVING THE RECORD AND MOVIE COMPANIES AND THE ELECTRONICS BUSINESS IS NOT SUFFICIENT THEY NEED TO COMPLETE THE LOOP SONY HAS POWERFUL HARDWARE AND VALUABLE SOFTWARE AND IT MAY BE ON THE VERGE OF ADDING TO ITS PROGRAMMING CAPACITY ITS MOVIE UNIT IS IN THE LATE STAGES OF NEGOTIATIONS ON A PLAN TO ACQUIRE MINORITY STAKES IN BOTH THE LOS ANGELES LAKERS AND THE LOS ANGELES KINGS SOURCES SAY STILL NOBUYUKI IDEI A COMPANY DIRECTOR CONCEDES THAT DESPITE SEVERAL YEARS OF EFFORT MAKING HARDWARE AND SOFTWARE WORK TOGETHER WILL BE THE BIGGEST CHALLENGE FOR SONY IN THE FUTURE AND THERE ARE MORE IMMEDIATE PROBLEMS THE COMPANY'S GROWTH LIKE THAT OF MANY JAPANESE ELECTRONIC COMPANIES HAS HIT A BRICK WALL WHILE SALES GREW AT RATES OF MORE THAN 20 IN THE LATE 1980S THEY PEAKED IN EARLY 1993 AND HAVE BEEN SLIDING IN THE FISCAL SECOND QUARTER ENDED SEPT 30 SONY POSTED AN 87 DECLINE IN CONSOLIDATED SALES DOWN TO 93844 BILLION YEN 866 BILLION FROM 1028 TRILLION YEN A YEAR EARLIER THANKS TO SUCCESSFUL CURRENCY HEDGING WHICH ADDED 12 BILLION YEN TO ITS BOTTOM LINE PRETAX PROFIT IN THE QUARTER ROSE 412 TO 1801 BILLION YEN BUT A MORE ACCURATE REFLECTION OF ITS CORE BUSINESS ACTIVITY COMES FROM SONY'S OPERATING PROFIT WHICH PLUNGED 58 TO 1219 BILLION YEN FURTHERMORE SONY HASN'T YET WORKED OUT HOW TO GET ITS ENTERTAINMENT VEHICLES OUT ONTO THE INFORMATION HIGHWAY TO ADDRESS THAT PROBLEM MICHAEL P SCHULHOF THE CHAIRMAN AND CHIEF EXECUTIVE OF SONY CORP OF AMERICA IS NOW MEETING WITH TOP US TELECOMMUNICATIONS EXECUTIVES TO DISCUSS A STRATEGIC ALLIANCE SUCH AN ALLIANCE COULD ALSO INJECT BADLY NEEDED CAPITAL INTO SONY WHICH LIKE OTHER COMPANIES IN JAPAN IS FINDING IT VIRTUALLY IMPOSSIBLE TO RAISE FUNDS IN EITHER THE DEBT OR EQUITY MARKETS THERE INVESTMENT BANK FURMAN SELZ IN NEW YORK IS HELPING EXPLORE OPTIONS THAT INCLUDE A SALE OF A 25 STAKE IN SONY'S ENTERTAINMENT OPERATIONS BASED ON OTHER CURRENT DEALS FOR MOVIE AND RECORD COMPANIES THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INC APPROACHING 10 BILLION FOR EXAMPLE MR SCHULHOF SAYS SONY VALUES ITS MOTIONPICTURE COMPANY AT BETWEEN 6 BILLION AND 8 BILLION AND ITS MUSIC COMPANY AT ANOTHER 6 BILLION A SALE OF 25 TO A TELEPHONE COMPANY COULD BRING IN 3 BILLION TO 4 BILLION UNDER THAT SCENARIO THE QUESTION IS WHO CAN GIVE US AN ALLIANCE IN ELECTRONIC DISTRIBUTION WITH COMPLEMENTARY STRENGTHS MR SCHULHOF SAYS BUT HE HAS NO CONCERNS ABOUT THE DESIRABILITY OF HIS ASSETS IT'S LIKE A GAME OF MUSICAL CHAIRS THERE ARE ONLY FIVE MAJOR STUDIOS AND 10 PEOPLE LOOKING FOR A CHAIR MR SCHULHOF STRESSES THAT SONY WILL NEVER SELL OFF CONTROLLING STAKES IN ITS OPERATIONS AND REMAIN IN CONTROL OF MANAGEMENT BUT HE SAYS SONY IS ALSO PREPARED TO CONSIDER A PUBLIC OFFERING OF PART OF THE ENTERTAINMENT COMPANY TO RAISE ADDITIONAL CAPITAL IN THE US OR POSSIBLY ISSUE NEW SHARES IN THE PARENT COMPANY TO THE PUBLIC IN THE US IF SONY'S GOING TO CONTINUE ON THE SAME GROWTH CURVE IT HAS TO HAVE NEW SOURCES OF EQUITY AND ALTERNATIVES TO THE JAPANESE MARKETS MR SCHULHOF SAYS WE STILL HAVE AMBITIOUS PLANS TO EXPAND OUR SOFTWARE BUSINESS AND CONTINUE THE GROWTH OF ELECTRONICS AND THAT'S GOING TO PLACE BIG DEMANDS ON US FOR FINANCING SONY MANAGEMENT IN TOKYO HOWEVER MAY NOT YET BE SOLD ON MR SCHULHOF'S PROPOSAL I DON'T THINK WE HAVE MADE ANY DECISIONS YET ON THIS SUBJECT SAYS MR IDEI THE SONY DIRECTOR MR IDEI SAYS MR SCHULHOF SHOULD BE STUDYING ALL THE POSSIBILITIES AND REPORTING THEM TO SONY MANAGEMENT FOR DISCUSSION FROM ITS START AS A RADIOREPAIR FIRM THAT MR MORITA AND MASARU IBUKA FOUNDED IN 1946 WITH ABOUT 500 SONY HAS GROWN INTO A 34 BILLION COMPANY WITH OFFICES OR FACTORIES IN 29 COUNTRIES WITH 30 OF ITS SALES IN THE US AND ANOTHER 26 EACH IN EUROPE AND JAPAN SONY'S OPERATIONS ARE AMONG THE MOST INTERNATIONAL IN THE WORLD WHILE BEST KNOWN FOR CONSUMER PRODUCTS SONY ALSO MAKES COMPUTERS AND A BROAD RANGE OF SEMICONDUCTORS WHEN SONY SWALLOWED COLUMBIA PICTURES IN 1989 ITS IDEA WAS TO SYNERGIZE ITS HARDWARE MANUFACTURING OPERATIONS WITH ENTERTAINMENT SOFTWARE THE COMPANY THAT MADE THE WALKMAN VCRS AND CD PLAYERS SUDDENLY WAS MAKING THE MUSIC AND MOVIES TO PLAY ON THEM PROFITS WERE EXPECTED TO FOLLOW THEY HAVEN'T SO FAR INSTEAD SYNERGY HAS MOSTLY BOILED DOWN TO A FEW CELEBRITY ENDORSEMENTS AND SOME RECORDLABEL SUPPORT FOR SONY'S NEW DIGITALAUDIO PRODUCT THE MINIDISC IN TOKYO SONY EXECUTIVES NOW TALK ABOUT GLOBAL LOCALIZATION A SEEMING EUPHEMISM FOR LETTING SONY'S ENTERTAINMENT AND HARDWARE BRANCHES SET THEIR OWN COURSES IT IS A STRATEGY THAT LEAVES SONY LOOKING MORE LIKE A 1970SSTYLE CONGLOMERATE THAN A FUTURE POWER IN MULTIMEDIA ELECTRONICS THEY'VE GOT A LOT OF GREAT TECHNOLOGY BUT IS IT IN THE RIGHT PLACES ASKS CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC SONY IS A LITTLE LIKE IBM THEY'VE GOT THE TECHNOLOGY THEY JUST HAVEN'T PUT IT WHERE THEY NEED IT TO SOME EXTENT SONY MAY STILL SUFFER FROM THE HUBRIS THAT LED IT TO PUSH ITS OWN BETAMAX VCR STANDARD AGAINST THE COMBINED WEIGHT OF SEVERAL OTHER JAPANESE ELECTRONICS FIRMS SONY LOST AND SWORE IT HAD LEARNED ITS LESSON BUT HAS IT CONSIDER SONY WHICH MADE A BUNDLE MASSPRODUCING THE AUDIO COMPACT DISK NOW MAKES FOUR DIFFERENT CONSUMER PRODUCTS AND HAS PLANS FOR A FIFTH ALL OF WHICH USE CDS THAT CAN'T BE USED ON ANY OF THE OTHER PRODUCTS FOUR YEARS AGO SONY PUSHED A NEW TAPE FORMAT KNOWN AS 8MILLIMETER FOR USE IN BOTH CAMCORDERS AND VCRS IT WAS A HIT IN CAMCORDERS BUT FLOPPED IN VCRS LEAVING PRODUCTS SUCH AS THE VIDEO WALKMAN A PORTABLE 8MM VCR GATHERING DUST ON STORE SHELVES WHEN SONY LICENSED THE BASIC TECHNOLOGY FOR THE MINIDISC WIDELY IN ORDER TO BUILD A LARGER MARKET SHARP CORP RUSHED OUT A MINIDISC VERSION THAT WAS MUCH SMALLER AND CHEAPER IN JUST A FEW MONTHS THEN SONY TOOK ANOTHER SEVERAL MONTHS TO RESPOND SONY WHICH PRIDES ITSELF ON BUILDING PRODUCTS THAT CREATE NEW MARKETS PEOPLE HAD NEVER BEFORE IMAGINED GOT BLINDSIDED AGAIN WHEN SHARP INTRODUCED A CAMCORDER WITH A FLATPANEL SCREEN INSTEAD OF A VIEWFINDER EARLIER THIS YEAR SONY RELEASED ITS OWN VERSION ALTHOUGH ONLY IN THE US A SONY SPOKESMAN SAYS THE COMPANY HAS TO TIP ITS HAT TO SHARP FOR THE CAMCORDER IDEA IN GENERAL HOWEVER SONY DENIES THAT IT HAS LET ITSELF STRAY FROM WHAT THE MARKET WANTS SONY DIRECTOR TOSHITADA DOI FOR INSTANCE SAYS THE MULTIPLICITY OF CD FORMATS ALLOWED SOFTWARE PRODUCERS TO CREATE A GREATER QUANTITY OF CREATIVE SOFTWARE THAN A SINGLE FORMAT WOULD HAVE ALLOWED THERE MIGHT BE SOME NEGATIVE POINTS LIKE CONFUSION IN THE MARKET BUT THAT WAS A TRADEOFF HE SAYS SONY ALSO HAS BEEN DISAPPOINTED IN ITS HOPES THAT ITS MOVIE STUDIO AND RECORD UNITS WOULD MELD MINDS WITH ITS HARDWARE TYPES TO COME UP WITH INNOVATIVE IDEAS ONE PROBLEM HAS BEEN THE VASTLY DIFFERENT CULTURES SONY'S US HARDWARE EXECUTIVES UNTIL RECENTLY WERE FROSTY TOWARD THEIR HOLLYWOOD COUNTERPARTS AND AGHAST AT THE VAST SUMS SONY SPENT ON THE STUDIO AND ITS MANAGEMENT IN TOTAL MR SCHULHOF CALCULATES SONY HAS INVESTED 8 BILLION IN THE ENTERTAINMENT INDUSTRY IT SPENT 2 BILLION TO ACQUIRE CBS RECORDS IN 1988 THEN A YEAR LATER PAID 34 BILLION FOR COLUMBIA PICTURES ENTERTAINMENT INC SONY SPENT MORE THAN 1 BILLION IMMEDIATELY TO BOOST PRODUCTION BUY A STUDIO FACILITY AND BUY A MANAGEMENT TEAM BY ACQUIRING THE GUBERPETERS ENTERTAINMENT CO IT HAD TO SETTLE A COSTLY LAWSUIT WITH TIME WARNER INC BECAUSE PRODUCERS PETER GUBER AND JON PETERS WERE UNDER EXCLUSIVE CONTRACT TO WARNER BROS THE FIRST TWO YEARS SONY OWNED THE STUDIO WERE MARKED BY MANAGEMENT TURMOIL INCLUDING THE DEPARTURE OF MR PETERS TO LURE BIG TALENT TO THE STUDIO THE COMPANY OVERPAID FOR MOVIES SUCH AS HOOK AND HAD LITTLE SUCCESS TROUBLES CONTINUED THIS YEAR WITH THE POOR SHOWING OF LAST ACTION HERO THE STUDIO WAS EMBARRASSED BY PRESS REPORTS LAST SUMMER CLAIMING TO LINK SOME OF ITS EXECUTIVES TO A PROSTITUTION SCANDAL THOUGH NO CHARGES WERE EVER FILED AND SONY SAYS AN INTERNAL AUDIT TURNED UP NO WRONGDOING OR MISUSE OF CORPORATE FUNDS SONY EXECUTIVES CONCEDE THAT IT WAS UNREALISTIC TO EXPECT MUCH SYNERGY IN THE NEAR TERM FROM THE COLUMBIA ACQUISITION WHEN WE ACQUIRED IT COLUMBIA PICTURES' POSITION WAS NOT SO SOUND MR IDEI SAYS THE LAST TWO TO THREE YEARS HAVE BEEN A PERIOD OF RESTRUCTURING OUR PERSPECTIVE WAS THAT WE SHOULD BE PATIENT SONY RECENTLY SIGNED MOST OF ITS TOP STUDIO AND RECORD EXECUTIVES TO NEW LONGTERM CONTRACTS INCLUDING MR GUBER THE CHAIRMAN OF SONY PICTURES THE MOVE WAS AIMED IN PART AT SIGNALING THAT SONY IS BEHIND ITS MANAGEMENT TEAM AND TAKES FAILURES IN STRIDE MR SCHULHOF NOTES THAT SONY'S COLUMBIA AND TRISTAR STUDIOS HAVE COMBINED MARKET SHARES FOR THE YEAR TO DATE CURRENTLY EXCEEDING 20 MAKING THE ENTERTAINMENT UNIT THE US BOXOFFICE LEADER IN 1990 IT HAD LESS THAN 14 MR SCHULHOF SAYS THE MOVIE UNIT CONTRIBUTED A SIGNIFICANT PORTION OF SONY'S 900 MILLION TOTAL ENTERTAINMENT OPERATING PROFIT AND THE MOVIE UNIT MAY BE ON THE VERGE OF GETTING INTO A NEW LINE OF BUSINESS WITH A PURCHASE OF MINORITY INTERESTS IN THE LOS ANGELES LAKERS BASKETBALL TEAM AND THE LOS ANGELES KINGS HOCKEY TEAM THE COMPANY MAY ALSO BUILD A NEW SPORTS ARENA NEAR THE GREAT WESTERN FORUM WHERE THE TEAMS CURRENTLY PLAY ACCORDING TO PEOPLE CLOSE TO THE NEGOTIATIONS THE TALKS COULD CONCLUDE OR FALL APART WITHIN DAYS THESE PEOPLE SAY NONE OF THE PARTIES INVOLVED WOULD COMMENT ON THE DISCUSSIONS WHATEVER TRANSACTION OCCURS WOULD BE COMPLEX AND DIFFICULT TO VALUE THE LAKERS WERE VALUED AT 155 MILLION AND THE KINGS AT 71 MILLION BY FINANCIAL WORLD MAGAZINE BASED ON REVENUES FROM THE 199192 SEASONS THEY WERE THE NO 1 AND NO 5 MOST VALUABLE FRANCHISES IN THEIR SPORTS RESPECTIVELY THE LAKERS ALSO OWN THE GREAT WESTERN FORUM SONY HAS MOVED TO BRING ALL OF THE US OPERATIONS UNDER MR SCHULHOF WHO IS PRESSING HIS DIVISIONS TO WORK TOGETHER MORE CLOSELY LAST WINTER THE HEAD OF SONY'S US CONSUMERELECTRONICS UNIT RON SOMMER WAS TRANSFERRED TO EUROPE AND THAT 62 BILLION DIVISION WAS FOR THE FIRST TIME PLACED UNDER MR SCHULHOF'S CONTROL SOCALLED OPPORTUNITIES MEETINGS TAKE PLACE MORE OFTEN BETWEEN DIVISIONS AND SONY MUSIC AND MOVIES MARKETING EXPERTS ARE HELPING DESIGN CAMPAIGNS FOR SONY ELECTRONIC PRODUCTS SONY IS ALSO WORKING TO LINK ITS BRAND NAMES IN CONSUMERS' MINDS LAST MONTH IN NEW YORK IT OPENED ITS SPLASHY SONY PLAZA A GIANT RETAIL SPACE THAT SHOWCASES SONY TV SETS PHONES CDS OF SUCH ARTISTS AS MICHAEL BOLTON AND MARIAH CAREY AND TSHIRTS FROM MOVIES LIKE SLEEPLESS IN SEATTLE MORE OUTLETS ARE PLANNED NATIONWIDE EXECUTIVES IN TOKYO HAVE SEIZED ON ONE OF SONY'S MOST RECENT VENTURES ITS BID TO ENTER THE HOME VIDEOGAME MARKET AS A MODEL FOR THE SYNERGY THEY SEEK IT IS A JOINT VENTURE BETWEEN SONY'S HARDWAREFOCUSED PARENT COMPANY AND SONY MUSIC ENTERTAINMENT JAPAN THE MUSIC SUBSIDIARY THAT HAS ALSO DEVELOPED SEVERAL SOFTWARE TITLES BASED ON SONY PICTURES' FILMS FOR NINTENDO CO'S GAME SYSTEM THE HARDWARE SIDE WILL CONTRIBUTE HIGHPERFORMANCE SEMICONDUCTORS AND ADVANCED GRAPHICSPROCESSING TECHNOLOGY THE SOFTWARE SIDE IS RESPONSIBLE FOR DEVELOPING INHOUSE GAME SOFTWARE AND SIGNING UP THIRDPARTY DEVELOPERS SONY HAS CHOSEN A TOUGH ASSIGNMENT HERE HOME VIDEO GAMES ARE DOMINATED BY NINTENDO AND SEGA ENTERPRISES LTD AND THEY EARN MOST OF THEIR PROFITS FROM SALES OF SOFTWARE NOT HARDWARE MAKING IT HARDER FOR TRADITIONAL CONSUMERELECTRONICS COMPANIES TO COMPETE SONY'S MAINSTAY MARKETS IN AUDIOVISUAL EQUIPMENT REMAIN SATURATED SONY DOES HAVE HIGH HOPES FOR A PERSONAL COMMUNICATOR NEXT YEAR BASED ON TECHNOLOGY FROM GENERAL MAGIC INC A CALIFORNIA STARTUP BUT MR SCHULHOF SAYS SONY STILL HAS PLENTY OF ROOM TO EXPAND THE COMPACTDISK TVSET AND CAMCORDER MARKETS IN THE US AND AN ALLIANCE WITH A TELECOMMUNICATIONS COMPANY COULD HELP POSITION SONY TO SELL HARDWARE FOR THE HOME COMPONENTS OF THE FUTURE HE ALSO SAYS SONY HAS NO INTENTION OF LEAVING SUCH MARKETS AS GAMES AND PERSONAL COMMUNICATORS TO THE COMPETITION IF WE STOP INNOVATING AND STOP BRINGING NEW ELECTRONIC DEVICES TO MARKET WE'LL DIE HE SAYS WE'LL BECOME JUST AN ORDINARY PLAINVANILLA COMPANY RICHARD TURNER CONTRIBUTED TO THIS ARTICLE 9312030038 931203 ECONOMY CONSUMER OUTLAYS OUTPACED INCOME DURING OCTOBER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMERS ARE SPENDING MONEY FASTER THAN THEY'RE MAKING IT THE COMMERCE DEPARTMENT SAID DISPOSABLE PERSONAL INCOME AFTER ADJUSTMENTS FOR INFLATION ROSE 02 IN OCTOBER FOLLOWING A 01 RISE IN SEPTEMBER BUT SPENDING ROSE TWICE AS FAST INCREASING 04 FOR THE MONTH FOLLOWING A 03 INCREASE IN SEPTEMBER STRONG SPENDING ON DURABLE GOODS LED THE OCTOBER ADVANCE BUT THERE WERE GAINS IN NONDURABLE GOODS AND SERVICE PURCHASES AS WELL ANALYSTS SAID SUCH STRONG SPENDING BODES WELL FOR THE CHRISTMAS SELLING SEASON AND FOURTHQUARTER ECONOMIC GROWTH BUT WILL PROBABLY BE UNSUSTAINABLE INTO NEXT YEAR THAT'S BECAUSE CONSUMERS HAVE BEEN DIPPING INTO THEIR SAVINGS TO BUY NEW ITEMS AND WILL MOST LIKELY BE UNWILLING TO CONTINUE DOING THAT FOR THE LONG TERM SAYS BRUCE STEINBERG SENIOR ECONOMIST WITH MERRILL LYNCH IN OCTOBER FOR INSTANCE AMERICANS' SAVINGS RATE EASED TO 37 OF DISPOSABLE INCOME FROM 39 IN THE PRECEDING MONTH SEPARATELY THE COMMERCE DEPARTMENT SAID NEWHOME SALES SLIPPED 65 IN OCTOBER TO AN ANNUAL RATE OF 679000 THE DECLINE FOLLOWS A REVISED 149 JUMP IN SEPTEMBER ORIGINALLY REPORTED AS 208 OCTOBER SALES DROPPED IN ALL AREAS EXCEPT THE MIDWEST WHICH WAS PROBABLY PLAYING CATCHUP FROM FLOODING DURING THE SUMMER WHICH DELAYED SALES JOSEPH LIRO CHIEF ECONOMIST OF SG WARBURG SAID THAT TAKEN TOGETHER THE SEPTEMBER AND OCTOBER HOUSING REPORTS PAINT A MORE ACCURATE PICTURE OF THE MOMENTUM GAINING IN THE HOUSING INDUSTRY THE AVERAGE OF THE TWO MONTHS WOULD PUT HOUSING SALES AT A 700000 ANNUAL RATE ROUGHLY 10 HIGHER THAN A YEAR AGO THE LABOR DEPARTMENT ALSO SAID YESTERDAY THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 17000 LAST WEEK TO 321000 THE LARGE DROP WAS DUE IN PART TO THE THANKSGIVING HOLIDAY WHICH CLOSED UNEMPLOYMENT OFFICES HOWEVER THE FOURWEEK MOVING AVERAGE OF CLAIMS A BETTER MARKER FOR WORKFORCE CONDITIONS ALSO SUGGESTS A FIRMING IN THE LABOR MARKET IT FELL TO 339000 FROM 343000 THE WEEK BEFORE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9312030037 931203 HICKS MUSE BUYS STAKE IN DESA DALLAS INVESTMENT FIRM HICKS MUSE & CO ACQUIRED A 60 STAKE IN DESA INTERNATIONAL A BOWLING GREEN KY MAKER OF INDOOR AND OUTDOOR HEATING PRODUCTS SPECIALTY FASTENING SYSTEMS AND ELECTRICAL TOOLS TERMS WEREN'T DISCLOSED A MANAGEMENT GROUP LED BY DESA'S CHAIRMAN AND CHIEF EXECUTIVE ROBERT H ELMAN WILL HOLD THE REMAINING 40 STAKE DESA HAD SALES OF ABOUT 100 MILLION IN THE YEAR ENDED FEB 28 SEPARATELY HICKS MUSE SAID ITS HAT BRANDS INC UNIT A DALLAS HAT MAKER AGREED TO ACQUIRE CHARLIE 1 HORSE HAT CO OF BATAVIA ILL CHARLIE 1 HORSE MAKES WESTERN HATS 9312030036 931203 HEARD ON THE STREET FUND MANAGER CONTRARY TO POPULAR OPINION SAYS CLIMB IN BOND YIELDS MAY HELP INSURERS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN INTEREST RATES RISE INSURANCE STOCKS FALL THAT ISN'T ONE OF THE RULES OF THE NEW YORK STOCK EXCHANGE BUT IT MIGHT AS WELL BE AS IN THE PAST THE RECENT UPTICK IN BOND YIELDS HAS PROMPTED WIDESPREAD DUMPING OF INSURANCE STOCKS COMPANIES SUCH AS AMERICAN GENERAL CINCINNATI FINANCIAL AND TORCHMARK ARE OFF MORE THAN 20 FROM THEIR 52WEEK STOCK MARKET HIGHS BUT SOME FANS OF INSURANCE STOCKS BELIEVE THAT THE SELLING IS OVERDONE AND THAT HIGHER BOND YIELDS MAY ACTUALLY BOLSTER INSURANCE COMPANY PROFITS AMONG THE BULLS IS ALLAN FULKERSON WHO FOR 17 YEARS HAS RUN BOSTON'S CENTURY SHARES TRUST A NOLOAD NOCOMMISSION MUTUAL FUND THE 250 MILLION FUND INVESTS ALMOST EXCLUSIVELY IN INSURANCE STOCKS IT'S THE 13TH BESTPERFORMING MUTUAL FUND FOR THE 10 YEARS THROUGH SEPT 30 WITH A 374 GAIN ACCORDING TO FUND RESEARCHER LIPPER ANALYTICAL SERVICES MY SENSE IS THE HAIRTRIGGER SECTORROTATORS HAVE MOVED ON SAYS THE 60YEAROLD MR FULKERSON I'M MORE POSITIVE ABOUT OUR PORTFOLIO TODAY THAN AT ANY TIME IN THE LAST 12 MONTHS AS HE SEES IT RISING BOND YIELDS SHOULD BOOST THE INVESTMENT INCOME EARNED BY INSURERS IN TURN LEADING TO BETTER EARNINGS THESE COMPANIES ARE INVESTING EVERY DAY HE SAYS IF THEY CAN INVEST AT 6 RATHER THAN 5 THEY CAN EARN MORE INVESTMENT INCOME INVESTMENT INCOME IS CRUCIAL FOR INSURERS MOST PROPERTYCASUALTY COMPANIES DON'T MAKE ANY MONEY ON THEIR UNDERWRITING BUSINESS BECAUSE THEY PAY OUT AS MUCH IN INSURANCE CLAIMS AND EXPENSES AS THEY COLLECT IN PREMIUMS TO TURN A PROFIT THESE COMPANIES RELY ON MONEY MADE FROM SUCCESSFULLY INVESTING THEIR RESERVES BUILT UP BY COLLECTING PREMIUMS BUT WHILE RISING BOND YIELDS HELP INVESTMENT INCOME THEY DEPRESS THE VALUE OF BONDS OWNED BY INSURANCE COMPANIES THAT'S WHY INVESTORS TEND TO SELL INSURERS WHEN YIELDS RISE THIS TIME AROUND THE HIT FROM INTEREST RATES WILL BE IMMEDIATELY VISIBLE IN MANY INSURANCE COMPANY BALANCE SHEETS BECAUSE OF A NEW ACCOUNTING STANDARD THAT'S NOW BEING ADOPTED UNDER THE NEW RULES ONLY BONDS THAT ARE GOING TO BE HELD TO MATURITY CAN BE CARRIED AT AMORTIZED COST THE REST MUST BE VALUED AT MARKET PRICES THAT COULD INCREASE THE SENSITIVITY OF INVESTORS TO RISING INTEREST RATES CONCEDES MR FULKERSON NONETHELESS HE THINKS THE LOWER BOND VALUES AREN'T THAT CRITICAL IF THE COMPANY DOESN'T HAVE TO SELL THE SECURITIES IT DOESN'T MATTER SHELBY DAVIS MANAGER OF THE 900 MILLION NEW YORK VENTURE FUND AND ANOTHER BULL ON INSURANCE STOCKS THINKS THE RISE IN BOND YIELDS MAY ACTUALLY LEAD PROPERTYCASUALTY INSURANCE COMPANIES TO PUSH UP THE PRICES THEY CHARGE FOR INSURANCE POLICIES THEREBY IMPROVING PROFITABILITY A RISE IN RATES MIGHT BE JUST WHAT THE DOCTOR ORDERED SAYS MR DAVIS HIGHER RATES SHOULD LEAD TO FIRMER PRICES ON THE PROPERTYCASUALTY SIDE BECAUSE IT ELIMINATES BOND PROFITS WHICH ARE BEING USED TO PAY CLAIMS HE FAVORS INSURERS INCLUDING AMERICAN INTERNATIONAL GROUP WR BERKLEY CHUBB GENERAL RE NAC RE AND NATIONAL RE NOT EVERYBODY IS BUYING THE BULLS' ARGUMENT THOUGH DOUGLAS PRATT MANAGER OF THE 340 MILLION INVESCO FINANCIAL SERVICES PORTFOLIO DOESN'T OWN ANY LIFE INSURANCE COMPANIES AND ONLY A HANDFUL OF SPECIALIZED PROPERTYCASUALTY COMPANIES MR PRATT DOUBTS THAT RISING RATES WILL DO MUCH FOR THE EARNINGS OUTLOOK OF INSURANCE COMPANIES BUT GIVEN THE WAY INSURANCE STOCKS RESPOND TO RISING RATES HE THINKS THE QUESTIONS IS IRRELEVANT WHO CARES ABOUT THE FUNDAMENTALS THE FACT IS THE STOCKS GET KILLED RATES GO UP THE STOCKS GO DOWN EVEN MR FULKERSON'S BULLISHNESS DOESN'T EXTEND TO ALL INSURANCE STOCKS INSTEAD HE'S STICKING WITH A PORTFOLIO OF LESS THAN 30 TOPNOTCH INSURANCE COMPANIES INCLUDING AMERICAN GENERAL CAPITAL HOLDING CHUBB CINCINNATI FINANCIAL GENERAL RE MBIA OHIO CASUALTY SAFECO AND TORCHMARK THESE COMPANIES TYPICALLY HAVE HIGH RETURNS ON EQUITY THEY REGULARLY RAISE THEIR DIVIDENDS AND THEIR STOCKS TRADE AT LOWER MULTIPLES OF 1994 EARNINGS THAN THE BROAD MARKET OHIO CASUALTY FOR INSTANCE TRADES AT JUST 12 TIMES NEXT YEAR'S ESTIMATED EARNINGS OF 5 AND YIELDS ALMOST 5 ONE OF THE SAFEST BETS AROUND IS THAT THEY'LL RAISE THEIR DIVIDEND IN FEBRUARY SAYS MR FULKERSON IF THERE'S A FURTHER RISE IN INTEREST RATES INSURERS WON'T GET SINGLED OUT AGAIN RECKONS MR FULKERSON BUT HE DOES WORRY ABOUT THE IMPACT OF RISING BOND YIELDS ON THE BROADER STOCK MARKET IF THERE'S A SLIGHT RISE THE IMPACT ON INSURANCE STOCKS IS LIKELY TO BE NEGLIGIBLE MR FULKERSON SAYS BUT IF RATES GO A LOT HIGHER EVERYBODY WILL GET HIT AND WE'LL GET HURT ALONG WITH EVERYBODY ELSE 9312030035 931203 CORRUPTION IN BANKRUPTCY SYSTEM INJURES FIRMS IN NEED BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL FOR MUCH OF THE PAST DECADE JONATHAN GANZ WAS A RESPECTED ATTORNEY IN PHILADELPHIA AND A FEDERAL BANKRUPTCYCOURT TRUSTEE IN CHARGE OF MILLIONS OF DOLLARS OF DEBTORS' ASSETS HE WAS ALSO A CROOK IN AUGUST MR GANZ PLEADED GUILTY TO MULTIPLE COUNTS OF EMBEZZLEMENT BANKRUPTCY FRAUD AND MONEY LAUNDERING IN CONNECTION WITH STEALING MORE THAN 2 MILLION FROM EIGHT BANKRUPT SMALL BUSINESSES THAT WERE IN HIS CHARGE HE IS SCHEDULED TO BE SENTENCED IN MARCH IN THE PAST SIX YEARS ABOUT 40 BANKRUPTCY TRUSTEES ATTORNEYS OR THEIR EMPLOYEES HAVE BEEN CONVICTED OF STEALING MONEY FROM DEBTOR ACCOUNTS FEDERAL REGULATORS HAVE ALSO GONE AFTER DOZENS OF OTHER COURT OFFICIALS CIVILLY FOR ALLEGED MISCONDUCT RANGING FROM CONFLICTS OF INTEREST TO MISHANDLING OF FUNDS THE FUNCTIONING OF THE BANKRUPTCY COURTS IS ESPECIALLY IMPORTANT TO SMALL BUSINESSES EACH YEAR TENS OF THOUSANDS OF SMALL FIRMS AND THEIR OWNERS FILE UNDER THE BANKRUPTCY LAWS FOR PROTECTION FROM CREDITORS MANY OTHER SMALL BUSINESSES ARE CREDITORS IN BANKRUPTCY CASES HOW WELL SUCH FIRMS DEBTORS AND CREDITORS FARE IN THE BANKRUPTCY PROCESS DEPENDS IN NO SMALL MEASURE ON THE EFFICIENCY AND HONESTY OF THOSE OPERATING IT MANY CONTEND THAT THE FRAUD PROBLEM IS A SYMPTOM OF A SYSTEM IN CRISIS AT A CONGRESSIONAL HEARING IN LATE 1991 DEMOCRATIC REP JACK BROOKS FROM TEXAS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE WARNED ANYONE WITH ANY PROPERTY WHATSOEVER TO STAY OUT OF BANKRUPTCY OTHERWISE SOMEBODY IS GOING TO STEAL IT THROW IT AWAY OR LET IT ROT SAID MR BROOKS THE BANKRUPTCY SYSTEM WILL DO YOU IN LIKE YOU HAVE NEVER BEEN DONE IF ANYTHING MANY OBSERVERS BELIEVE THE SITUATION HAS GOTTEN WORSE IN THE PAST TWO YEARS UNDER AN AVALANCHE OF NEW BANKRUPTCY CASES SPURRED BY THE NATION'S ECONOMIC PROBLEMS SOME 900000 CASES HAVE BEEN FILED IN EACH OF THE PAST TWO YEARS COMPARED WITH FEWER THAN 500000 IN 1986 THIS ONSLAUGHT OBSERVERS AND PARTICIPANTS AGREE HAS CREATED A SYSTEM ENTRUSTED WITH HANDLING TENS OF BILLIONS OF DOLLARS OF ASSETS A SYSTEM THAT IS OFTEN OVERBURDENED DEMORALIZED AND ACCORDING TO A REPORT EARLIER THIS YEAR BY THE FEDERAL GENERAL ACCOUNTING OFFICE VULNERABLE TO FRAUD WHILE MANY SMALLBUSINESS BANKRUPTCIES ARE HANDLED WELL TROUBLING STORIES ALSO ABOUND I WENT FROM HAVING A MAID TO BEING A MAID SAYS 62YEAROLD WYNELLE SHEFFIELD OF SMILEY TEXAS WHOSE EGG AND POULTRY BUSINESS FILED FOR BANKRUPTCY PROTECTION IN 1988 SHE BLAMES HER FINANCIAL DECLINE PARTLY ON WHAT SHE BELIEVES WERE MISDEEDS BY MARTIN SEIDLER THE COURTAPPOINTED TRUSTEE AND OTHERS IN THE BANKRUPTCY CASE LAST MARCH FEDERAL REGULATORS FILED A PETITION IN SAN ANTONIO BANKRUPTCY COURT SEEKING MONETARY PENALTIES AGAINST MR SEIDLER ON THE GROUND THAT HE MISHANDLED THOUSANDS OF DOLLARS OF ASSETS FROM MRS SHEFFIELD'S BUSINESS THE MATTER WAS SUBSEQUENTLY SETTLED WITH MR SEIDLER AGREEING TO PAY SEVERAL THOUSAND DOLLARS TO MRS SHEFFIELD MR SEIDLER NOTES THERE WAS NO FINDING OF WRONGDOING ON HIS PART BY THE BANKRUPTCY COURT THE MAIN BANKRUPTCY WATCHDOG IS THE US TRUSTEE WHICH BEGAN AS A PILOT PROJECT IN THE LATE 1970S AND HAS SLOWLY BEEN EXPANDED TO COVER MOST OF THE BANKRUPTCY COURTS IN THE COUNTRY THE FEDERAL PROGRAM'S MAIN JOB IS TO REGULATE THE ACTIVITIES OF PRIVATE TRUSTEES AND ATTORNEYS WHO HAVE MUCH OF THE DAYTODAY RESPONSIBILITY FOR BANKRUPTCY CASES HUNDREDS OF MARGINALLY PERFORMING OR CORRUPT PRIVATE TRUSTEES HAVE BEEN SHAKEN OUT OF THE SYSTEM WHILE THOUSANDS OF OLD BANKRUPTCY CASES SOME OF WHICH LINGERED IN THE COURTS FOR UP TO A DECADE HAVE BEEN CLOSED OUT SAYS JOHN LOGAN DIRECTOR OF THE US TRUSTEE'S EXECUTIVE OFFICE IN WASHINGTON DC TO BETTER DETECT FRAUD OR MISMANAGEMENT SOME TOUGHER FINANCIAL REPORTING AND PERFORMANCE REQUIREMENTS HAVE BEEN INSTITUTED HE ADDS BUT CRITICS ARGUE THAT THE BANKRUPTCY SYSTEM STILL HAS ENORMOUS PROBLEMS WHICH SOME BELIEVE THE US TRUSTEE HAS ONLY EXACERBATED PRIVATE TRUSTEES COMPLAIN OF BEING OVERWORKED BURIED IN FEDERAL RED TAPE AND UNDERPAID GETTING AS LITTLE AS 45 FOR MANY BANKRUPTCY CASES IN THE PECKING ORDER THE PRIVATE TRUSTEE IS THE LOWEST OF THE LOW SAYS SAUL EISEN PRESIDENT OF THE NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES WHICH REPRESENTS PRIVATE TRUSTEES MR EISEN SAYS HE GETS CALLS REGULARLY FROM VETERAN TRUSTEES WHO ARE FED UP AND QUITTING A TALENT DRAIN HE BELIEVES IS HARMING THE FUNCTIONING OF THE BANKRUPTCY COURTS AS THE CASES OF MR GANZ AND OTHERS ILLUSTRATE THE BANKRUPTCY SYSTEM IS STILL HAVING A HARD TIME SEPARATING THE GOOD ACTORS FROM THE BAD IN ANY SORT OF TIMELY FASHION MR GANZ WAS ABLE TO CONTINUE HIS EMBEZZLING FOR YEARS PARTLY BECAUSE OF LOOSE FINANCIALREPORTING REQUIREMENTS THAT STILL GOVERN MANY BANKRUPTCY CASES FEDERAL OFFICIALS SAY IN A REPORT ISSUED LATE LAST YEAR THE JUSTICE DEPARTMENT'S INSPECTOR GENERAL SAID IT FOUND DOZENS OF INSTANCES WHERE THE US TRUSTEE HAD FAILED TO ADEQUATELY MONITOR OR INVESTIGATE SUSPECT ACTIONS BY PRIVATE TRUSTEES SUCH FAILINGS HAD THE POTENTIAL TO ALLOW TRUSTEE NEGLIGENCE OR WRONGDOING TO OCCUR THE REPORT FOUND MR LOGAN BLAMED HIS AGENCY'S FAILINGS ON GROSSLY INADEQUATE RESOURCES A SITUATION HE SAYS CONTINUES TO THIS DAY LIMITED RESOURCES HAVE PUSHED THE US TRUSTEE'S OFFICE TO CUT BACK OVERSIGHT ON A MAJOR AREA OF BUSINESS BANKRUPTCY KNOWN AS CHAPTER 11 FILINGS TRUSTEES USUALLY AREN'T APPOINTED IN SUCH CASES IN WHICH A BUSINESS ATTEMPTS TO REORGANIZE AND EMERGE FROM BANKRUPTCY AS A GOING CONCERN ATTORNEYS FOR THE DEBTORS AND CREDITORS HAVE MUCH OF THE RESPONSIBILITY FOR MANAGING THE BANKRUPTCY CASE THOUGH ONLY ABOUT 20000 CHAPTER 11 CASES ARE FILED A YEAR THEY USUALLY INVOLVE THE LARGEST AMOUNTS OF MONEY AND AS A RESULT SOME ARGUE HAVE THE MOST POTENTIAL FOR ABUSE ONE CONTROVERSIAL CHAPTER 11 CASE INVOLVES FIRSTMARK CORP A FINANCIALSERVICES COMPANY IN INDIANAPOLIS FIRSTMARK'S PRINCIPALS AND THE CASE'S BANKRUPTCY ATTORNEYS ARE DEFENDANTS IN A CLASSACTION SUIT FILED BY COMPANY CREDITORS IN AN INDIANAPOLIS FEDERAL COURT ALONG WITH CHARGES OF FRAUD BY COMPANY OFFICIALS THE SUIT ALLEGES THAT THE BANKRUPTCY ATTORNEYS HAD VARIOUS CONFLICTS OF INTEREST THAT CONTRIBUTED TO ASSETS BEING SOLD AT LESS THAN FULL VALUE ONE SUCH ALLEGED CONFLICT INVOLVED THE SALE OF A HOTEL TO A COMPANY THAT EMPLOYED THE SON OF THE ATTORNEY REPRESENTING THE CREDITORS DEFENDANTS IN THE LAWSUIT DENY WRONGDOING AND SAY THE HOTEL SALE WAS A COMPLETELY PROPER TRANSACTION DONE WITH THE BANKRUPTCY JUDGE'S APPROVAL NUMEROUS CORRUPTION AND CONFLICTOFINTEREST QUESTIONS HAVE BEEN RAISED ABOUT THE OPERATION OF THE BANKRUPTCY COURT IN SANTA ROSA CALIF SINCE 1990 TWO PRIVATE TRUSTEES HAVE PLEADED GUILTY TO EMBEZZLING FUNDS FROM BANKRUPT COMPANIES AND INDIVIDUALS THERE AND I CAN'T SAY THE PROBLEMS IN SANTA ROSA ARE SOLVED YET SAYS MR LOGAN OF THE US TRUSTEE'S OFFICE 9312030034 931203 WHAT'S NEWS BUSINESS AND FINANCE THE US AND THE EUROPEAN COMMUNITY APPEAR READY TO STRIKE A DEAL ON WORLD TRADE TALKS ON MONDAY DESPITE SOME REMAINING DIFFERENCES COMMENTS BY US TRADE REPRESENTATIVE KANTOR AND EC TRADE MINISTER BRITTAN INDICATE THAT BOTH SIDES MADE SUBSTANTIVE PROGRESS IN THEIR TWO DAYS OF TALKS THIS WEEK AND ARE LOOKING FOR FINAL APPROVAL TO CUT A DEAL VOLVO CANCELED ITS PLAN TO MERGE WITH RENAULT OF FRANCE AND CREATE THE WORLD'S SIXTHLARGEST AUTO MAKER THE COLLAPSE PROMPTED VOLVO'S CHAIRMAN TO RESIGN FROM THE SWEDISH COMPANY BIG US RETAILERS POSTED SLIGHTLY LOWERTHANEXPECTED SALES IN NOVEMBER SIGNALING A SLOW START TO THE CRUCIAL HOLIDAY SHOPPING PERIOD BUT ANALYSTS GENERALLY AGREED THAT AN IMPROVING ECONOMY RISING CONSUMER CONFIDENCE AND LOW INTEREST RATES PROMISE A GOOD HOLIDAY SHOPPING SEASON DISPOSABLE PERSONAL INCOME ROSE 02 IN OCTOBER WHILE SPENDING INCREASED 04 IN THE MONTH AS CONSUMERS SPENT THEIR MONEY AT A FASTER PACE THAN THEY EARNED IT SONY CHAIRMAN AKIO MORITA SUFFERED A CEREBRAL HEMORRHAGE AND UNDERWENT BRAIN SURGERY IN TOKYO THE ILLNESS COMES AT A TIME WHEN THE JAPANESE FIRM NEEDS KEEN LEADERSHIP TO SEE IT THROUGH THE TURBULENT CONVERGENCE OF COMMUNICATIONS TECHNOLOGIES CANADIAN TELECOMMUNICATIONS GIANT BCE WILL PAY 400 MILLION FOR A 30 STAKE IN JONES INTERCABLE AND AN OPTION TO BUY CONTROL OF THE SEVENTHLARGEST US CABLETV OPERATOR P&G AGREED TO BUY VPSCHICKEDANZ A GERMAN MAKER OF FACIAL AND TOILET TISSUES ENTERING THE 7 BILLION EUROPEAN TISSUEPRODUCT MARKET AND CONTINUING ITS OVERSEAS EXPANSION PEOPLE FAMILIAR WITH THE DEAL SAID THE SALE IS VALUED AT ABOUT 580 MILLION TIMES MIRROR PRESIDENT DAVID LAVENTHOL RESIGNED CITING ILLNESS AND THE COMPANY ELEVATED TWO OFFICIALS TO POSITIONS THAT MAKE THEM CONTENDERS FOR THE FUTURE LEADERSHIP OF THE PUBLISHING AND CABLETV CONCERN THE WHITE HOUSE PROPOSAL TO CONSOLIDATE BANK REGULATORS WOULD IMPEDE THE FED'S ABILITY TO PREVENT FINANCIAL CATASTROPHES A TOP FED OFFICIAL SAID THE COMMENTS SIGNAL THE START OF A TURF BATTLE BETWEEN THE FED AND THE WHITE HOUSE OVER BANKS' REGULATION SHAWMUT NATIONAL IS REORGANIZING ITS MORTGAGE UNIT FOLLOWING A FED DETERMINATION THAT IT FAILED TO MEET OBLIGATIONS UNDER FAIRLENDING LAWS TOKYO STOCKS ROSE FURTHER THURSDAY CLIMBING 19 ON CONFIDENCE THAT THE JAPANESE GOVERNMENT WILL TAKE ACTION TO ENLIVEN THE BLEAK ECONOMY BUT THE POTENTIAL FOR MORE GAINS IS VIEWED AS LIMITED UNTIL SPECIFICS ARE UNVEILED CHRYSLER BOOSTED ITS QUARTERLY DIVIDEND BY 33 TO 20 CENTS A SHARE REFLECTING THE CAR MAKER'S STRONG EARNINGS AND IMPROVED CREDIT RATING MICROSOFT IS ENTERING THE BOOMING MARKET FOR CHILDREN'S SOFTWARE PART OF ITS NEW PUSH TO SELL PROGRAMS FOR HOME PERSONALCOMPUTER USERS ORNDA HEALTHCORP AGREED TO ACQUIRE SUMMIT HEALTH IN A TRANSACTION VALUED AT 292 MILLION THAT WILL FURTHER THE HOSPITALCHAIN COMPANY'S AGGRESSIVE EXPANSION EFFORTS FORD AND THE US DEPARTMENT OF ENERGY ARE ENTERING INTO A 122 MILLION JOINT RESEARCH PROGRAM THAT WOULD ALLOW THE AUTO MAKER TO EXPLORE HYBRID FORMS OF ELECTRIC VEHICLES THAT ARE EXPECTED TO RUN LONGER AND FARTHER THAN CARS POWERED SOLELY BY ELECTRICITY STOCKS VOLUME 253078110 SHARES DOW JONES INDUSTRIALS 370211 UP 503 TRANSPORTATION 177067 UP 706 UTILITIES 22462 UP 145 BONDS LEHMAN BROTHERS TREASURY INDEX 551821 OFF 110 COMMODITIES OIL 1495 A BARREL OFF 53 CENTS DOW JONES FUTURES INDEX 13628 UP 018 SPOT INDEX 12352 UP 077 DOLLAR 10887 YEN UP 012 17225 MARKS OFF 00010 9312030033 931203 FOREIGN EXCHANGE DOLLAR EASES AGAINST MARK DESPITE CUT IN GERMAN RATES AND BULLISH US DATA BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED SLIGHTLY LOWER AGAINST THE MARK AS TRADERS SHRUGGED OFF A CUT IN GERMAN MONEYMARKET INTEREST RATES AND MORE SIGNS OF US ECONOMIC HEALTH AND AWAITED FRIDAY'S CRUCIAL US EMPLOYMENT REPORT BUT EASING GERMAN RATES DID HURT THE MARK AGAINST BOTH THE SWISS FRANC AND STERLING WHICH WAS HELPED BY CONTINUING OPTIMISM ABOUT THE BRITISH ECONOMY THE MARK POWERED AHEAD AGAINST THE ANEMIC LIRA TRADERS REPORTED THAT THE US FEDERAL RESERVE STEPPED IN TO SUPPORT THE ITALIAN CURRENCY IN LATE TRADING ON BEHALF OF ITALY'S CENTRAL BANK LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17225 MARKS DOWN A BIT FROM 17235 MARKS LATE WEDNESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 10887 YEN UP FROM 10875 YEN STERLING WAS TRADING AT 14841 UP FROM 14784 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10890 YEN AND AT 17230 MARKS TRADERS SAID THAT PENDING RELEASE OF THE IMPORTANT US JOBS REPORT INVESTORS WERE UNWILLING TO PLACE ANY NEW BETS ON THE DOLLAR DESPITE NORMALLY MARKETSENSITIVE NEWS SUCH AS A CUT IN GERMANY'S REPO RATE AND A DROP IN THE NUMBER OF NEWLY UNEMPLOYED US WORKERS THE US NONFARM PAYROLL REPORT WHICH ECONOMISTS BELIEVE GIVES THE BEST INDICATION OF HOW FAST THE US ECONOMY IS INCREASING EMPLOYMENT IS DUE EARLY FRIDAY ANALYSTS EXPECT THERE WAS A RISE OF 168000 JOBS DURING NOVEMBER WHILE THE UNEMPLOYMENT RATE WAS ESTIMATED TO HAVE FALLEN TO 67 FROM 68 IT WOULD BE PREMATURE TO TAKE THE DOLLAR HIGHER AT THIS POINT WITH THE EMPLOYMENT REPORT LOOMING OVER THE MARKET SAID BELAL KHAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO ANYTHING THAT COULD BE DONE TODAY COULD BE UNDONE TOMORROW SO WHY DO IT HE ASKED BUT MR KHAN NOTED THAT THE MARK SEEMED TO WEAKEN SOMEWHAT IN CROSS OR NONDOLLAR TRADING AGAINST MOST OTHER EUROPEAN CURRENCIES AND THE YEN HE SUGGESTED THAT THE US CURRENCY COULD RALLY AGAINST THE MARK FRIDAY IF THE EMPLOYMENT REPORT DOESN'T DISAPPOINT DOLLAR BULLS YOU'RE SEEING SOME WEAKNESS IN THE MARK AGAINST THE CROSSES THAT WE MAY SEE TOMORROW AGAINST THE DOLLAR MR KHAN SAID BUT TRADERS NOTED THAT THE DOLLAR WAS HAMPERED BY THE FAILURE OF THE BUNDESBANK GERMANY'S CENTRAL BANK TO LOWER ITS OTHER INTEREST RATES ALONG WITH THE EASING IN THE REPO RATE WHICH DROPPED TO 6 FROM 625 THE REPO RATE IS THE BUNDESBANK'S BEST TOOL FOR FINETUNING MONEYMARKET INTEREST RATES DISAPPOINTED MARKET WATCHERS HAD HOPED THAT THE 575 DISCOUNT RATE AND 675 LOMBARD RATE ALSO WOULD BE CUT ALSO DISCOURAGING ANY RALLY BY THE DOLLAR TRADERS SAID WAS CONTINUING INTEREST IN SELLING THE US CURRENCY AT 17250 MARKS THE DOLLAR CHALLENGED THAT LEVEL HALFHEARTEDLY SEVERAL TIMES THURSDAY BUT WAS UNABLE TO GET PAST IT EVEN AFTER A REPORT SHOWED THAT NEW US UNEMPLOYMENT CLAIMS FELL 17000 IN THE WEEK ENDED NOV IT'S SURPRISING THAT IN THE FACE OF ALL THIS DATA WE'RE NOT SEEING THE DOLLAR HIGHER SAID KAREN KLUGE A CORPORATE ADVISER AT CREDIT SUISSE IN NEW YORK THE 17250MARK LEVEL HAS SHOWN VERY STRONG RESISTANCE SHE ADDED ELSEWHERE THE LIRA WEAKENED SHARPLY AGAINST BOTH THE DOLLAR AND THE MARK ON CONCERN THAT THE NEXT ROUND OF ITALIAN MUNICIPAL ELECTIONS COULD PROPEL MORE CANDIDATES FROM EXTREMIST PARTIES INTO LOCAL GOVERNMENT 9312030032 931203 WORLD MARKETS TOKYO SHARES EXTEND RECOVERY THOUGH WARILY LONDON STOCKS FALL FRANKFURT LOGS A NEW HIGH A WALL STREET JOURNAL ROUNDUP TOKYO STOCKS EXTENDED THEIR RECOVERY RISING 19 THURSDAY ON INCREASING CONFIDENCE THAT THE JAPANESE GOVERNMENT WILL TAKE ACTION TO ENLIVEN THE BLEAK ECONOMY BUT THE POTENTIAL FOR FURTHER GAINS WAS VIEWED AS LIMITED UNTIL PRIME MINISTER MORIHIRO HOSOKAWA UNVEILS SPECIFICS LONDON SHARES FELL AS EUPHORIA ABOUT BRITAIN'S NEW BUDGET GAVE WAY TO PROFITTAKING FRANKFURT SHARES RALLIED TO A RECORD CLOSING HIGH EVEN THOUGH GERMANY'S CENTRAL BANK LEFT MAJOR INTEREST RATES UNCHANGED YET AN IMPROVED EUROPEAN RATE SCENARIO CHEERED SEVERAL BOURSES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10902 UP 063 REFLECTING HIGHER MARKETS IN ALL REGIONS FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7196 UP 279 OR 4 WITH NIPPON SUISAN OF JAPAN POSTING A 7 GAIN IN ITS LOCAL CURRENCY APPAREL RETAILER STOCKS TRAILED AT 9392 DOWN 249 OR 26 WITH LIMITED OF THE US SLIDING 16 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SURGED 71877 POINTS WEDNESDAY GAINED 33344 TO 1745875 ON FRIDAY IN TOKYO THE NIKKEI EASED 19332 POINTS TO CLOSE THE MORNING SESSION AT 1726543 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 470 MILLION SHARES UP SHARPLY FROM 3475 MILLION SHARES A DAY EARLIER GAINERS TROUNCED LOSERS 952120 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROCKETED UP 6981 POINTS WEDNESDAY ADVANCED 2125 OR 15 TO 146512 NEWS REPORTS THURSDAY MORNING SAID MR HOSOKAWA'S COALITION GOVERNMENT WOULD PRESENT NEXT TUESDAY AN ECONOMIC STIMULUS PACKAGE THAT INCLUDES A BIG CUT IN INCOME TAXES AND MEASURES TO REVITALIZE THE STOCK MARKET STUNG BY HUGE RECENT LOSSES AND A RUMOR SURFACED AND WAS LATER DENIED THAT JAPAN'S CENTRAL BANK WOULD LOWER A KEY INTEREST RATE INVESTORS SCRAMBLED TO COVER SHORT OR OVERSOLD POSITIONS SENDING THE NIKKEI UP 45 AT THE MIDDAY BREAK BUT THE GAINS WERE PEELED AWAY AS DEALERS AND ARBITRAGERS TOOK PROFITS WHEN THE ADVANCE WAS CONSIDERED UNREALISTIC PENDING CONCRETE GOVERNMENT ACTION ON ITS PROMISES TO BOLSTER THE ECONOMY RETAIL CUSTOMERS BOUGHT SMALLCAPITALIZATION SHARES WHICH HAD BEEN MAJOR LOSERS IN THE TOKYO MARKET'S MONTHLONG PLUNGE BECAUSE INDIVIDUALS HAD TO UNLOAD THEIR HOLDINGS TO MEET MARGINLOAN OBLIGATIONS FOR STOCKS BOUGHT ON CREDIT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 93 POINTS TO 32239 ALSO THE DAY'S LOW THE FT 30STOCK INDEX DECLINED 120 POINTS TO 24455 BUT VOLUME REMAINED EXTRAORDINARILY HEAVY AT 105 BILLION SHARES DOWN FROM THE RECORD 124 BILLION SHARES A DAY EARLIER LINGERING EXCITEMENT ABOUT THE LACK OF MAJOR TAX INCREASES IN THE BRITISH BUDGET UNVEILED A DAY EARLIER ALLOWED SHARES TO MAKE BIG GAINS IN MORNING DEALINGS PUSHING THE FT 100 UP TO A HIGH OF 32583 BUT DISAPPOINTING BRITISH CORPORATE EARNINGS REPORTS FOLLOWED BY THE GERMAN CENTRAL BANK'S DECISION TO MAINTAIN BENCHMARK INTEREST RATES AT CURRENT LEVELS REVERSED THE MOMENTUM THE GERMAN BUNDESBANK'S INACTION DEFLATED EXPECTATIONS FOR A BRITISH LENDINGRATE CUT AND INVESTORS SAW AN OPPORTUNITY TO GRAB PROFITS AFTER A 1214POINT ADVANCE IN THE FIRST THREE DAYS OF THIS WEEK IN FRANKFURT THE DAX 30STOCK INDEX RAN UP 2066 POINTS TO A RECORD 211053 THE EXCHANGE'S RECENT UPWARD MOMENTUM GOT A BOOST FROM SHORTCOVERING AHEAD OF THE GERMAN BUNDESBANK'S MEETING IN ANTICIPATION OF A MONETARY EASING BECAUSE THE BUYING WAS MAINLY COVERING OF SHORT SALES REPLACING BORROWED STOCK THAT HAD BEEN SOLD ON A BET THE PRICE WOULD DECLINE THE DAX MANAGED TO CHALK UP THE NEW HIGH DESPITE NEWS A HALFHOUR BEFORE THE SESSION ENDED THAT THE GERMAN CENTRAL BANK HAD LEFT ITS LOMBARD AND DISCOUNT RATES UNCHANGED STILL THE BUNDESBANK LOWERED TO 6 FROM 625 ITS SECURITIES REPURCHASE RATE IN PARIS STOCKS ENDED HIGHER AFTER BOUNCING BACK FROM LOWS PROMPTED BY THE INITIAL BUNDESBANK NEWS BECAUSE THE GERMAN REPORATE CUT MAY GIVE RECESSIONSTRICKEN EUROPEAN ECONOMIES LEEWAY TO LOWER THEIR RATES WITHOUT HAVING TO WAIT ON GERMANY BELGIUM AND THE NETHERLANDS ANNOUNCED INTERESTRATE CUTS PROMPTING HOPES FOR SIMILAR ACTION BY THE BANK OF FRANCE IN AMSTERDAM THE MARKET RESPONDED COOLLY TO THE DUTCH CENTRAL BANK'S LOWERING OF ITS THREE KEY INTEREST RATES AND SHARES FINISHED MIXED WITH A STRONG UNDERTONE AND IN BRUSSELS SHARES CLOSED MOSTLY HIGHER HELPED BY THE RATE SCENARIO IN MADRID PRICES FINISHED HIGHER DESPITE THE GERMAN DELAY IN CUTTING BENCHMARK RATES AS INVESTORS BELIEVED THESE WOULD COME DOWN SOONER OR LATER IN MEXICO CITY STOCKS JUMPED 18 TO A RECORD AS CANADIAN PRIME MINISTER JEAN CHRETIEN VOWED TO IMPLEMENT BY JAN 1 THE NORTH AMERICAN FREE TRADE AGREEMENT WITH MEXICO AND THE US THE CANADIAN LEADER PREVIOUSLY THREATENED TO DELAY NAFTA'S IMPLEMENTATION BECAUSE OF CONCERNS ABOUT LOSSES TO SOME CANADIAN INDUSTRIAL SECTORS IN SYDNEY SHARE PRICES RALLIED 21 AFTER INVESTORS TOOK HEART FROM SURGING TOKYO STOCKS AND A REBOUND IN THE PRICE OF GOLD OVERSEAS INVESTORS RETURNED TO THE AUSTRALIAN MARKET IN STRENGTH AND DOMESTIC INSTITUTIONS WERE BIG BUYERS IN HONG KONG STOCKS EASED AFTER SHARP GAINS WERE ERASED BY FRESH POLITICAL JITTERS GOV CHRIS PATTEN PRESSED AHEAD WITH LESS CONTENTIOUS ISSUES IN CONSTITUTIONAL REFORMS SUBJECT OF A SINOBRITISH FEUD AND POLITICAL STALEMATE FOR MORE THAN A YEAR CHINA WHICH OPPOSES BRITAIN'S UNILATERALLY RATIFYING A BILL OF PARTIAL REFORMS SAID MR PATTEN'S DECISION MEANT TALKS WITH LONDON HAVE BROKEN DOWN IN SINGAPORE EQUITIES SURGED 12 BOOSTED BY BUYING OF INDEXLINKED STOCKS AND OTHER BLUE CHIPS PARTLY ON IMPRESSIVE EARNINGS REPORTS AND MERGER PLANS THE SINGAPORE MARKET BENEFITING FROM POLITICAL STABILITY A STABLE CURRENCY AND STRONG CORPORATE EARNINGS PROFILE IS INCREASINGLY VIEWED AS A DEFENSIVE PLAY IN INSTITUTIONAL INVESTORS' PORTFOLIOS AS MANY FUNDS ARE BEING SHIFTED FROM HONG KONG IN TAIPEI PRICES SOARED 25 ONCE AGAIN SCORING A SIXMONTH HIGH ON HEAVY BUYING OF BLUE CHIPS AS INDUSTRIES IN TAIWAN WERE EXPECTED TO BENEFIT FROM THE RECENT SLUMP IN GLOBAL OIL PRICES INVESTMENT BY FOREIGN INSTITUTIONAL FUNDS IN THE MARKET LAST MONTH MARKED A RECORD HIGH IN MANILA STOCKS RALLIED 31 BUOYED BY ADVANCES ON MARKETS IN THE US AND ASIA IN WELLINGTON PRICES CLIMBED 19 SPURRED BY GAINS ON OTHER BOURSES BUT IN SEOUL STOCKS FINISHED SHARPLY LOWER ON A LACK OF TRADING THEMES WHILE INVESTORS' DEPOSITS WITH BROKERAGE FIRMS DROPPED THIS IS AN INDICATOR OF THE MARKET'S FUTURE BUYING POWER 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 9312030030 931203 GM IS SET TO CONTINUE AGGRESSIVE OVERTIME AND HIGH PRODUCTION DETROIT WITH STILL A MONTH TO GO BEFORE THE END OF THE FOURTH QUARTER GENERAL MOTORS CORP HAS ALREADY SURPASSED ITS 1993 THIRDQUARTER PRODUCTION TOTAL BY ABOUT 63 OR 46807 UNITS GM SAID IT WILL CONTINUE A PATTERN OF AGGRESSIVE OVERTIME THROUGH NEXT WEEK CHURNING OUTPUT TO LEVELS IT HASN'T REACHED SINCE LATE 1990 THE COMPANY SAID IT PLANS DAILY AND SATURDAY OVERTIME AT 21 ASSEMBLY PLANTS NEXT WEEK BASED ON CURRENT PLANT SCHEDULES GM IS EXPECTED TO PRODUCE 105213 VEHICLES THIS WEEK FORD MOTOR CO SAID IT PLANS OVERTIME TOMORROW AT ITS ASSEMBLY PLANTS IN DEARBORN MICH KANSAS CITY KAN AND EDISON NJ FORD SAID ALL BUT THREE OF ITS ASSEMBLY PLANTS HAVE WORKED DAILY OVERTIME THIS WEEK CHRYSLER CORP SAID IT PLANS OVERTIME BOTH TOMMOROW AND SUNDAY AT ITS ST LOUIS MINIVAN ASSEMBLY PLANT AND ITS BRAMALEA ONTARIO ASSEMBLY PLANT THAT BUILDS THE CHRYSLER LH MODELS IN ADDITION THE AUTO MAKER SAID IT HAS SCHEDULED OVERTIME TOMORROW AND NEXT WEEK AT ASSEMBLY PLANTS IN DETROIT WARREN AND STERLING HEIGHTS MICH NEWARK NJ TOLEDO OHIO AND WINDSOR ONTARIO THE 10 DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD 241567 CARS AND TRUCKS THIS WEEK UP 77 FROM THE 224254 VEHICLES BUILT IN THE YEARAGO WEEK 9312030029 931203 INTERNATIONAL HUNGARY APPROVES A 2 BILLION PROGRAM TO AID WEAK BANKS SPECIAL TO THE WALL STREET JOURNAL BUDAPEST HUNGARY GAVE THE GOAHEAD FOR A 2 BILLION RECAPITALIZATION PROGRAM DESIGNED TO NURSE SEVERAL OF THE NATION'S DEBTRIDDEN BANKS BACK TO HEALTH BEFORE RELEASING THEM FOR PRIVATIZATION THE CAPITAL INFUSION IS AIMED AT SHORING UP NINE TROUBLED HUNGARIAN BANKS INCLUDING FOUR OF THE FIVE LARGEST COMMERCIAL BANKS MANY OF WHICH CURRENTLY HAVE NEGATIVE CAPITALADEQUACY RATIOS THE BANKS INVOLVED ARE MAGYAR HITEL BANK KERESKEDELMI BANK BUDAPEST BANK MEZOBANK MAGYAR TAKAREKSZOVETKEZETI BANK AGROBANK DUNABANK IPARBANKHAZ AND KONZUMBANK UNDERNOURISHED LOAN PORTFOLIOS CAUSED BY DIMINISHING HEAVY INDUSTRY AND AGRICULTURAL SECTORS HAVE PLAGUED THE BANKING INDUSTRY SINCE THE COLLAPSE OF THE COMECON MARKET LAST YEAR THE NATION'S CORPORATE LOSSES TOTALED 300 BILLION FORINTS 305 BILLION AND MUCH OF THAT AMOUNT WAS PASSED ON TO CREDITORS AS A RESULT 30 TO 35 OF ALL BUSINESS LOANS ON THE BANKS' BOOKS ARE CLASSIFIED AS BAD OR DOUBTFUL DEBTS 9312030026 931203 WHAT'S NEWS WORLDWIDE CANADA APPROVED NAFTA CLEARING THE LAST MAJOR OBSTACLE TO THE TRADE ACCORD THE NEW LIBERAL PARTY GOVERNMENT CLAIMED IT HAD SECURED SIGNIFICANT IMPROVEMENTS TO THE PACT REMOVING TRADE BARRIERS AMONG THE US CANADA AND MEXICO ALLOWING IT TO BE IMPLEMENTED JAN 1 THE LIBERALS HAD THREATENED TO DROP OUT OF NAFTA IF THEIR DEMANDS FOR CHANGES WEREN'T MET THE US TRADE REPRESENTATIVE SAID UNDERTAKINGS MADE BY THE US AND MEXICO TO DEAL WITH CANADA'S CONCERNS DON'T CHANGE THE BASIC PACT IN ANY WAY THE LIBERALS' MAIN DEMAND WAS MET WHEN THE THREE COUNTRIES AGREED TO TRY TO NEGOTIATE CODES GOVERNING TRADE SUBSIDIES AND DUMPING OR UNFAIR PRICING COLOMBIAN SECURITY FORCES KILLED DRUG KINGPIN PABLO ESCOBAR AND A BODYGUARD IN MEDELLIN FOLLOWING A 16MONTH MANHUNT ESCOBAR WHOSE COCAINE EMPIRE MADE HIM ONE OF THE WORLD'S RICHEST MEN HAS BEEN BLAMED FOR THE DEATHS OF HUNDREDS INCLUDING PRESIDENTIAL CANDIDATES JUDGES POLICE AND A NEWSPAPER PUBLISHER RESEARCHERS HAVE DISCOVERED THAT A FAIRLY COMMON INBORN DEFECT IS THE UNDERLYING CAUSE OF SOME CANCERS OF THE COLON UTERUS AND OVARY THE CANCERS ACCOUNT FOR 80000 DEATHS A YEAR IN THE US TWO TEAMS OF SCIENTISTS SIMULTANEOUSLY IDENTIFIED A GENE THAT WHEN DEFECTIVE CAN TURN A HEALTHY CELL MALIGNANT ISRAELI SETTLERS STAGED PROTESTS THROUGHOUT THE WEST BANK AFTER A SECOND ISRAELI DIED OF WOUNDS RECEIVED IN A DRIVEBY SHOOTING BY PALESTINIANS WEDNESDAY IN THE GAZA STRIP ISRAELI TROOPS KEPT A LOW PROFILE IN AN EFFORT TO REDUCE CLASHES THERE SEPARATELY RABIN SAID IT WASN'T LIKELY ISRAEL FORCES WOULD WITHDRAW FROM JERICHO AND GAZA BY DEC 13 CLINTON IS CONSIDERING MEETING WITH SYRIAN PRESIDENT ASSAD NEXT MONTH IN AN EFFORT TO REIGNITE STALLED MIDEAST PEACE EFFORTS SECRETARY OF STATE CHRISTOPHER PLANS A WEEKLONG TRIP TO THE REGION AND WILL SEEK ISRAEL'S ASSESSMENT OF PROSPECTS FOR REACHING AN ACCORD WITH SYRIA FEDERAL INVESTIGATORS SAID AN FBI STING DREW A NUMBER OF NASA EMPLOYEES AND CONTRACTORS INCLUDING A MARTIN MARIETTA UNIT INTO A SCAM IN WHICH A PHONY FIRM BRIBED NASA EMPLOYEES TO WIN CONTRACTS SEPARATELY THE SHUTTLE ENDEAVOUR WAS LAUNCHED ON A MISSION TO REPAIR THE 3 BILLION HUBBLE TELESCOPE NUCLEAR WATCHDOGS CAN NO LONGER VERIFY THAT NORTH KOREA ISN'T BUILDING NUCLEAR ARMS THE HEAD OF THE INTERNATIONAL ATOMIC ENERGY AGENCY SAID THE ANNOUNCEMENT CAME AS US AND UN OFFICIALS REVIEWED TOUGHER STEPS THEY MAY HAVE TO TAKE TO DEAL WITH NORTH KOREA'S REFUSAL TO ALLOW INTERNATIONAL INSPECTIONS OF ITS NUCLEAR FACILITIES BOSNIAN PEACE TALKS BROKE UP WITH NO AGREEMENT BY THE THREE WARRING FACTIONS ON HOW TO DIVIDE THE FORMER YUGOSLAV REPUBLIC DESPITE A BOSNIAN GOVERNMENT CONCESSION ON DIVIDING SARAJEVO WITH SERB FORCES BOSNIAN PRESIDENT IZETBEGOVIC BLAMED THE BREAKDOWN ON THE REFUSAL OF THE BOSNIAN SERBS TO RELINQUISH ANY MORE CAPTURED TERRITORY JAPAN'S DEFENSE CHIEF RESIGNED AMID CRITICISM IN PARLIAMENT OF A SPEECH IN WHICH HE SUGGESTED THE COUNTRY AMEND ITS POSTWAR CONSTITUTION'S BAN ON SENDING TROOPS ABROAD KEISUKE NAKANISHI WAS THE FIRST CABINET MEMBER IN THE FOURMONTHOLD RULING COALITION TO STEP DOWN SOMALI CLAN LEADER AIDID ARRIVED IN ETHIOPIA ABOARD A US PLANE FOR TALKS AIMED AT ENDING FACTIONAL FIGHTING IN HIS HOMELAND HIS ATTENDANCE WHICH ENDS A BOYCOTT AIMED AT FORCING THE UN TO RELEASE CAPTURED AIDES GIVES A BIG BOOST TO THE NEGOTIATIONS HONG KONG'S BRITISH GOVERNOR SAID HE WOULD PROCEED WITH A SLIMMEDDOWN VERSION OF HIS POLITICALREFORM PROPOSALS DRAWING IMMEDIATE CRITICISM FROM BEIJING CHINA SAID THE MOVE JEOPARDIZES SINOBRITISH TALKS ON THE RETURN OF THE COLONY TO CHINESE RULE VENEZUELAN CANDIDATES WRAPPED UP A BITTER PRESIDENTIAL CAMPAIGN IN PREPARATION FOR SUNDAY'S VOTE THE 18 CANDIDATES PRESENTED THEMSELVES AS THE SOLUTION TO THE CORRUPTION AND ECONOMIC ILLS THAT FUELED TWO 1992 COUP ATTEMPTS AND WIDE SOCIAL UNREST A GERMAN COMMISSION PROPOSED SETTING UP A FOUNDATION TO PAY 200000 APIECE TO PATIENTS WHO RECEIVED AIDSTAINTED BLOOD THE PARLIAMENTARY PANEL SAID FUNDS WOULD COME FROM THE GOVERNMENT BLOODCOLLECTION AGENCIES AND PHARMACEUTICAL FIRMS 9312030025 931203 BUSINESS BRIEF MEPC PLC UK PROPERTY GROUP POSTS 14 DROP IN PRETAX PROFIT UK PROPERTY GROUP MEPC PLC SAID PRETAX PROFIT FOR THE YEAR ENDED SEPT 30 FELL 14 TO 942 MILLION 1392 MILLION FROM 1094 MILLION THE PREVIOUS YEAR THE COMPANY LEFT ITS DIVIDEND UNCHANGED AT 20 PENCE 30 CENTS MARKET EXPECTATIONS WERE FOR PRETAX PROFIT OF 101 MILLION MEPC SAID NET PROPERTY INCOME FELL TO 2126 MILLION FROM 2144 MILLION THE PREVIOUS YEAR ATTRIBUTABLE PROFIT FELL TO 526 MILLION FROM 626 MILLION NET ASSET VALUE PER SHARE FELL TO 416 PENCE FROM 445 PENCE CHAIRMAN MICHAEL BLAKENHAM NOTED HOWEVER THAT THE NET ASSET VALUES DO NOT REFLECT THE SCALE OF THE UPTURN IN THE MARKET THAT HAS TAKEN PLACE SINCE THEY WERE PREPARED IN AUGUST 9312030024 931203 BUSINESS BRIEF HILLS STORES CO FISCAL 3RDQUARTER EARNINGS SOARED ON A ONETIME GAIN GAIN HILLS STORES CO BUOYED BY A HUGE ONETIME GAIN AS A RESULT OF ITS RECENT EMERGENCE FROM BANKRUPTCYCOURT PROTECTION SAID FISCAL THIRDQUARTER NET INCOME SOARED TO 2725 MILLION FROM 191 MILLION THE CANTON MASS RETAILER SAID EARNINGS FOR THE PERIOD ENDED OCT 30 INCLUDED A 2582 MILLION GAIN STEMMING FROM THE DISCHARGE OF DEBT UPON EMERGING ON OCT 4 FROM PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE THE COMPANY ALSO RECORDED A 6 MILLION NONCASH GAIN UNDER THE FRESHSTART ACCOUNTING CHARGE RELATED TO THE REORGANIZATION THE COMPANY DIDN'T PROVIDE PERSHARE FIGURES AT THE SUGGESTION OF FEDERAL REGULATORS IN PART BECAUSE OF A DIFFERENCE IN ACCOUNTING UNDER FRESHSTART RULES SALES SLIPPED TO 441 MILLION FROM 4474 MILLION A YEAR EARLIER HILLS STOCK ROSE 75 CENTS OR 38 TO 20375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9312030023 931203 CALIFORNIA MUST PAY FOR ACIDPIT CLEANUP FEDERAL COURT RULES LOS ANGELES A RULING BY THE US DISTRICT COURT IN LOS ANGELES FOUND THAT CALIFORNIA MUST PAY ALMOST ALL OF THE COSTS TO CLEAN UP THE STRINGFELLOW ACID PITS NEAR RIVERSIDE CALIF THE OPINION BY A COURTAPPOINTED FACT FINDER CALLED A SPECIAL MASTER IS SUBJECT TO REVIEW BY A JUDGE THE STATE SAID IT WILL APPEAL THE DECISION FOUND THE STATE MUST REIMBURSE AS MUCH AS ALL CLEANUP COSTS INCURRED BY COMPANIES THAT SHIPPED WASTE TO THE SITE AND AS MUCH AS 95 OF THE COSTS SPENT BY THE SITE OWNER THE STRINGFELLOW PITS WHERE SOME 34 MILLION GALLONS OF TOXIC WASTES WERE DUMPED FROM 1956 TO 1972 ARE AMONG THE WORST TOXIC SUPERFUND SITES IN THE NATION CLEANUP COSTS ARE EXPECTED TO TOP 100 MILLION IT'S A VINDICATION OF THE COMPANIES INVOLVED SAID BARRY GOODE AN ATTORNEY REPRESENTING THE CONCERNS EMBROILED IN THE CASE IT'S A JUST RESULT 9312030022 931203 LETTERS TO THE EDITOR A STABILIZED POPULATION AN OCT 6 ARTICLE CORRECTLY REPORTED THAT CALIFORNIANS FOR POPULATION STABILIZATION CAPS SUED HEWLETTPACKARD FOR VIOLATING STATE WORKERPROTECTION LAWS IN IMPORTING CONTRACT COMPUTER PROGRAMMERS FROM INDIA HOWEVER YOUR CHARACTERIZATION OF US AS AN ANTIIMMIGRATION GROUP IS LESS THAN TOTALLY ACCURATE CAPS DOES SUPPORT A NUMBER OF MEASURES AIMED AT REDUCING POPULATION GROWTH SO THAT THE POPULATION MAY BE STABILIZED IN BOTH CALIFORNIA AND THE US AMONG THESE ARE ENHANCED ENFORCEMENT OF LAWS AGAINST ILLEGAL IMMIGRATION AND A REDUCTION IN THE LEVEL OF LEGAL IMMIGRATION FROM THE CURRENT RECORDHIGH RATE SPECIFICALLY CAPS SUPPORTS SETTING THE RATE OF LEGAL IMMIGRATION AT REPLACEMENT LEVEL IE ABOUT 200000 A YEAR 9312030021 931203 BIG BOARD TAKES DISCIPLINARY STEPS IN VIOLATIONS CASES BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST ONE FIRM AND 12 INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS FORMER MEMBER FIRM JR MCLAUGHLIN SECURITIES INC MT KISCO NY WAS BARRED AND THE FIRM'S OWNER JOHN R MCLAUGHLIN JR WAS BARRED 12 MONTHS AND AN ADDITIONAL THREE YEARS AS AN INDEPENDENT FLOOR BROKER OR AS A FLOOR BROKER FOR A FIRM OF WHICH HE IS A CONTROLLING PERSON THE FIRM AND MR MCLAUGHLIN DIDN'T ADMIT OR DENY CHARGES THAT THEY VIOLATED NETCAPITAL AND REPORTING REQUIREMENTS OR OTHER CHARGES NONE OF THE FIRMS OR INDIVIDUALS COULD BE REACHED OR HAD ANY COMMENT THE EXCHANGE BARRED CORY GUSKIN WOODMERE NY A FORMER MANAGER OF THE TRADINGSERVICES SUPPORT GROUP FOR THE FOREIGN EQUITIES DESK AT PRIMERICA CORP UNIT SHEARSON LEHMAN BROTHERS INC'S WORLDWIDE EQUITIES DIVISION MR GUSKIN PLEADED GUILTY IN MAY TO A FELONY FOR MISAPPROPRIATION OF FUNDS THE EXCHANGE SAID HE MADE OR AUTHORIZED TRANSFERS OF 15 MILLION FROM CURRENCYEXCHANGE ACCOUNTS INTO AN ACCOUNT HE CONTROLLED AND MADE OTHER TRANSFERS TO CONCEAL THE MISAPPROPRIATION THE EXCHANGE SAID HE WAS SENTENCED TO FOUR MONTHS IN JAIL TO BE SERVED ON WEEKENDS AND FIVE YEARS' PROBATION AND SAID THE FIRM'S NET LOSS WAS 300000 MR GUSKIN HAS AGREED TO A RESTITUTION SCHEDULE HE DIDN'T ADMIT OR DENY CHARGES IN AGREEING TO THE BAR RICHARD SCOTT BLUM PHILADELPHIA A FORMER BROKER WAS FOUND GUILTY OF MISAPPROPRIATING 2000 FROM A CUSTOMER AND WAS BARRED JAMES M SCHULZE HOMEWOOD ILL A FORMER BROKER WAS BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE MISAPPROPRIATED A CUSTOMER'S CREDIT CARD HE WAS CRIMINALLY PROSECUTED FOR ATTEMPTING TO USE THE CARD THE BIG BOARD SAID BUT DIDN'T INDICATE THE DISPOSITION OF THAT CASE AFTER AN APPEAL FORMER BROKER RICHARD STANLEY CHANCIS NEW YORK WAS FOUND GUILTY OF SALESPRACTICE MISCONDUCT IN A PERIOD RUNNING FROM 1985 TO 1987 INCLUDING MAKING FALSE STATEMENTS ABOUT THE PRICES OF SECURITIES IN A CUSTOMER'S ACCOUNT CAUSING ORDERS TO BE EXECUTED IN INACTIVE ACCOUNTS WITHOUT CUSTOMER AUTHORIZATION MAKING TRADES IN ACCOUNTS WITH INSUFFICIENT FUNDS AND MAKING A MISLEADING STATEMENT ON HIS REGISTRATION APPLICATION HE WAS BARRED FOR EIGHT YEARS PETER ALEXANDER SPOTO SYRACUSE NY A FORMER BROKER WAS FOUND GUILTY OF MISAPPROPRIATING 67000 OF CUSTOMER FUNDS AND MAKING MATERIAL MISSTATEMENTS HE WAS BARRED CHARLES DEVAUX TURNER SR PORTGAGE IND A FORMER BROKER WAS BARRED 15 MONTHS FOR SALESPRACTICE MISCONDUCT INCLUDING EXCESSIVE AND UNAUTHORIZED TRADING IN AN ACCOUNT HE DIDN'T ADMIT OR DENY CHARGES ROBERT STEVEN FITZGERALD SOUTHLAKE TEXAS A FORMER BROKER WAS BARRED 12 MONTHS WITHOUT ADMITTING OR DENYING FINDINGS THAT HE PROCURED CONFIDENTIAL BANK RECORDS TO WHICH HE WASN'T ENTITLED AND ENGAGED IN SALESPRACTICE MISCONDUCT MARTIN ALONZO NEW YORK A FORMER POSITION TRADER WAS SUSPENDED FOR TWO MONTHS WITH ONE MONTH DEEMED SERVED FOR ARRANGING TRADES ON A PLUS TICK OR A PRICE ABOVE THE LAST SALE AT OR NEAR THE CLOSING RESULTING IN IMPROVEMENTS IN HIS PROFITANDLOSS STATEMENT HE DIDN'T ADMIT OR DENY FINDINGS THE EXCHANGE IMPOSED A SIXMONTH BAR AND A 25000 FINE ON MICHAEL ALAN PETTIS NEW YORK FORMER HEAD OF THE EMERGING CAPITAL MARKETS GROUP IN FIRST BOSTON CORP'S FIXEDINCOME DEPARTMENT FIRST BOSTON IS A UNIT OF CS HOLDING THE EXCHANGE SAID MR PETTIS ENTERED INTO UNRECORDED AGREEMENTS TO REACQUIRE SECURITIES FROM CUSTOMERS AT NO LOSS AND PREPARED MISLEADING DOCUMENTS HE DIDN'T ADMIT OR DENY ALLEGATIONS DONALD FREDERICK MARETTE JR CHEVY CHASE MD WAS BARRED TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS OF SALESPRACTICE MISCONDUCT INCLUDING MAKING AN UNAUTHORIZED PURCHASE OF BONDS IN AN ACCOUNT FALSELY TELLING A CUSTOMER HE HAD SOLD A STOCK PROVIDING FALSE DOCUMENTATION ABOUT THE TRANSACTION AND OFFERING TO REIMBURSE THE CUSTOMER FOR LOSSES JAMES G CROWTHER JR MANCHESTER VT A FORMER INDEPENDENT FLOOR BROKER WAS FINED 5000 WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE FAILED TO MAINTAIN REQUIRED NET CAPITAL AND FAILED TO KEEP CURRENT AND ACCURATE BOOKS AND RECORDS 9312030020 931203 THE AMERICAS MUCH MORE TO MEXICAN POLITICS THAN WHO'S AT THE TOP BY HECTOR CHAVEZBARRON CHIHUAHUA MEXICO THOSE WHO SCRUTINIZE MEXICAN POLITICS IN THE US AND IN MEXICO ARE MORE CONCERNED WITH PRESIDENT CARLOS SALINAS DE GORTARI'S SUCCESSOR THAN THEY ARE IN THE MASSIVE UNDERLYING POLITICAL CHANGES TAKING PLACE AT THE LOCAL LEVEL BEHIND THE SCENES BUT MEXICAN POLITICS IS CHANGING FROM THE BOTTOM TO THE TOP AND FROM THE INSIDE OUT THERE ARE IN FACT SOME LOCAL GOVERNMENTS IN MEXICO WHERE THE ENTIRE POLITICAL CULTURE IS BEING CHANGED THE RESULT OF THESE CHANGES WILL DETERMINE THE FUTURE POLITICAL NATURE OF MEXICO TO A FAR GREATER DEGREE THAN CHANGES AT THE TOP A FEW WEEKS AGO IN THE NORTHERN STATE OF CHIHUAHUA THE PREVIOUS GOVERNOR FERNANDO BAEZA APPEARED BEFORE THE STATE CONGRESS WHICH IS NOW CONTROLLED BY MEXICO'S MAIN OPPOSITION PARTY THE PURPOSE OF HIS VISIT WAS TO REQUEST APPROVAL OF THE GOVERNMENT EXPENDITURES FOR THE LAST MONTH HE WAS IN OFFICE SOME DAYS LATER A GROUP OF MR BAEZA'S SUPPORTERS APPEARED BEFORE THE STATE LEGISLATURE BELLIGERENTLY CONFRONTING AND INSULTING THE CONGRESSMEN WITH THE PURPOSE OF INTIMIDATING THE REPRESENTATIVES SO THAT THE FINAL APPROVAL WOULD BE GRANTED THIS TYPE OF POLITICAL FREEDOM DOES NOT EXIST IN MOST MEXICAN STATES BECAUSE STATE CONGRESSES GENERALLY DO NOT REVIEW OR REVISE PRESENT LEGAL INITIATIVES NOR ALLOW THIS TYPE OF FREEDOM OF SPEECH THEY NORMALLY ACT AS AN EXTENSION OF THE EXECUTIVE BRANCH AUTOMATICALLY APPROVING ALL INITIATIVES THAT ARE HANDED DOWN TO THEM THE BREAK IN DEPENDENCY BETWEEN LOCAL AUTHORITIES AND THE CENTRAL AUTHORITY IN MEXICO CITY IS LARGELY A RESULT OF PREVIOUSLY UNHEARD OF GUBERNATORIAL VICTORIES FOR THE OPPOSITION IN THE STATES OF GUANAJUATO CHIHUAHUA AND BAJA CALIFORNIA AND THIS WEEK CHANGES ARE BREWING IN THE STATE OF YUCATAN AS THE INTERIM GOVERNOR RESIGNED WEDNESDAY AMID CHARGES THAT SHE AND HER RULING INSTITUTIONAL REVOLUTIONARY PARTY PRI RIGGED STATE ELECTIONS LAST WEEKEND WHAT IS MOST EXCITING ABOUT THIS PROCESS IS THAT IT HAS ENGENDERED AN ENORMOUS CIVIC RESPONSE THAT HAS BEEN DORMANT FOR MANY YEARS IN CHIHUAHUA AND BAJA CALIFORNIA LIVE RADIO PROGRAMS ARE CONDUCTED DAILY WHERE CITIZENS CALL TO QUESTION OR SUPPORT MEASURES UNDERTAKEN BY THE STATE GOVERNMENT THE LARGEST NEWSPAPERS HAVE BEGUN INCLUDING IN THEIR SUNDAY EDITIONS A SECTION WHERE ANALYSIS AND POLITICAL DEBATES ARE CARRIED OUT ALTHOUGH THESE PRACTICES ARE COMMON IN THE US THEY ARE VERY UNUSUAL IN MEXICO PERHAPS THE MOST DAUNTING CHALLENGE FACED BY THE NEW INDEPENDENT STATE ADMINISTRATIONS IS THE TASK OF UNCOUPLING THE NETWORK OF INDIVIDUALS AND INSTITUTIONS ASSOCIATED WITH THE HISTORIC RULING PARTY THE PRI FROM STATE COFFERS LAST YEAR IN GUANAJUATO A CONFLICT AROSE BETWEEN THE OPPOSITION NATIONAL ACTION PARTY STATE GOVERNMENT AND PRI ACTIVISTS WHO REFUSED TO VACATE STATE BUILDINGS AFTER THEY LOST THE LAST ELECTION SIMULTANEOUSLY ALL PARTY OFFICIALS WERE REMOVED FROM THE STATE PAYROLL AND ALL EXPENDITURES FOR THE PRI'S ADVERTISING WERE CANCELED WHAT PREVIOUSLY HAD BEEN VIEWED BY LOCAL PRI OFFICIALS AS THE RULING PARTY'S RIGHTFUL OWNERSHIP OF STATE RESOURCES IS NOW CORRECTLY VIEWED AS THE TEMPORAL PRIVILEGE OF ELECTED PUBLIC SERVANTS ASSOCIATED WITH THIS IS THE TASK OF DISMANTLING THE STATES' OLD CORPORATIVIST STRUCTURE IN WHICH THE GOVERNMENT HAS MAINTAINED PRIVILEGES AND FINANCIAL SUPPORT FOR SPECIAL INTEREST GROUPS THE STATE GOVERNMENT OF BAJA CALIFORNIA ADDRESSED THIS ISSUE WHEN THEY DECIDED TO PAY TEACHERS DIRECTLY INSTEAD OF PAYING THEM THROUGH THE PRIDOMINATED UNION AS IS DONE IN THE REST OF THE COUNTRY AFTER THE NEW METHOD OF PAYMENT WAS IMPLEMENTED AN UNUSUALLY LARGE NUMBER OF TEACHERS WERE FOUND WHO HAD NEVER TAUGHT A LESSON IN THEIR LIVES BUT HAD BEEN RECEIVING FULL SALARIES FOR MANY YEARS ALSO BEING ELIMINATED IS STATE GOVERNMENT SUPPORT FOR CORRUPT SOCIAL LEADERS IN RETURN FOR FAVORS EXECUTED DURING THE ELECTORAL PROCESS IN JUAREZ CHIHUAHUA FOR EXAMPLE THE STATE AGRICULTURE SCHOOL HAD LOST ITS ACCREDITATION MANY YEARS AGO YET IT CONTINUED RECEIVING FEDERAL FUNDING IT WAS NOT UNTIL OPPOSITION GOV FRANCISCO BARRIO TOOK OFFICE LAST YEAR THAT THE SCHOOL'S REAL PURPOSE WAS UNCOVERED TO AID IN THE RIGGING OF ELECTIONS GOV BARRIO QUICKLY MOVED TO CANCEL THE FEDERAL GOVERNMENT SUBSIDY AND THE SCHOOL WAS CLOSED THIS DECISION WAS MET WITH GREAT PUBLIC APPROVAL SINCE THE SCHOOL WAS RECOGNIZED AS A NEST OF CORRUPTION SERVING NO LEGITIMATE PUBLIC INTEREST OF COURSE CHANGES EVEN POSITIVE ONES DO NOT COME WITHOUT A PRICE THERE HAS FOR EXAMPLE BEEN MUCH DISCONTENT WITHIN THE OPPOSITION PARTY FROM THOSE DESIRING INSTANT REMOVAL OF PROBLEMS THAT HAVE RESULTED FROM MANY YEARS OF THE FORMER GOVERNMENTS' ADMINISTRATIVE POLICIES ALSO THE COMMUNICATION MEDIA ARE OFTEN TOO CAUGHT UP IN THE OLD SYSTEM OF PATRONAGE TO ALERT THE PUBLIC TO ALL SIDES OF IMPORTANT SOCIAL DEBATES MAJOR ACTS OF SOCIAL CHANGE ARE FREQUENTLY IGNORED BY THE MEDIA WHILE THE VIEWS OF PRI POLITICAL HACKS OFTEN RECEIVE UNDUE ATTENTION IN 1988 BAJA CALIFORNIA'S OPPOSITION GOV ERNESTO RUFFO WAS THE TARGET OF MUCH ANIMOSITY FROM THE JOURNALISTIC COMMUNITY AFTER HE EXPOSED SEVERAL JOURNALISTS WHO WERE RECEIVING A REGULAR MONTHLY SALARY FROM THE STATE PAYROLL EVEN NOW THE STATE GOVERNMENT OF BAJA CALIFORNIA MUST USE ITS OWN DIRECT MAIL SYSTEM TO COMMUNICATE WITH THE PEOPLE BECAUSE OF THE MEDIA'S DISTORTION OF THE FACTS AND MISREPRESENTATION OF TRUTHS IN THE DIRECTION OF THE RULING PARTY'S PROPAGANDA AS ALL THESE EXPERIENCES MAKE CLEAR THE BIGGEST STUMBLING BLOCK TO THE ESTABLISHMENT OF DEMOCRATIC FEDERALISM IS THE HIGHLY CENTRALIZED SYSTEM OF GOVERNMENT THAT HAS GUIDED GOVERNANCE IN MEXICO FOR MORE THAN 60 YEARS COGNIZANT OF THIS BAJA CALIFORNIA'S GOVERNOR RECENTLY PROPOSED A CHANGE IN THE MEXICAN SYSTEM OF REVENUE COLLECTION THAT WOULD SHIFT MORE FISCAL RESPONSIBILITIES TO THE STATES CHIHUAHUA'S CONGRESS IS CURRENTLY DEBATING A SERIES OF MODIFICATIONS TO THE STATE CONSTITUTION THAT WILL MAKE IT DIFFERENT FROM THAT OF OTHER STATES A CRITICAL COMPONENT OF FEDERALIST DEMOCRACY TAKEN FOR GRANTED IN THE US THE RECENT CHANGES HAVE NOT COME ABOUT WITHOUT SOME DEGREE OF RESISTANCE AND SOCIAL DISRUPTION HOWEVER THE ONGOING EXPERIENCE OF THESE THREE MEXICAN STATES PROVES THAT THE COHABITATION OF THE OLD AND THE NEW POLITICAL SYSTEMS IS FEASIBLE PROVIDING IT'S CARRIED OUT WITH A SHARED PURPOSE OF CONTINUED EVOLUTION THE FACT THAT THE FEDERAL GOVERNMENT RECOGNIZES THESE CHANGES IN ADDITION TO RECOGNIZING THE POLITICAL VICTORIES OF OPPOSING PARTIES IN LOCAL GOVERNMENTS REPRESENTS THE BIGGEST CHANGE IN MODERN MEXICAN POLITICAL HISTORY BUT WHAT HAPPENS IN THE PROVINCES STILL SEEMS TO GO UNNOTICED IN THE DEBATE OVER MEXICO'S POLITICAL FUTURE MR CHAVEZBARRON IS HEAD OF THE PRESS OFFICE IN THE CHIHUAHUA STATE GOVERNMENT 9312030019 931203 LEGAL BEAT SUITS BY FIRMS EXCEED THOSE BY INDIVIDUALS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL BUSINESSES MAY BE THEIR OWN WORST ENEMIES WHEN IT COMES TO THE SOCALLED LITIGATION EXPLOSION PRELIMINARY DATA IN THE FIRSTEVER STUDY OF LITIGATION PATTERNS OF FORTUNE 1000 COMPANIES SHOW THAT BUSINESSES' CONTRACT DISPUTES WITH EACH OTHER CONSTITUTE THE LARGEST SINGLE CATEGORY OF LAWSUITS FILED IN FEDERAL COURT TRAILING BEHIND ARE PERSONALINJURY SUITS AND PRODUCTLIABILITY CASES BROUGHT BY INDIVIDUALS THIS RESULT WHILE LIMITED TO FEDERAL COURTS SEEMS TO CHALLENGE COMPANIES' FREQUENT CLAIMS THAT PERSONALINJURY PLAINTIFFS' LAWYERS ARE THE MAIN ENGINES OF LITIGATION IN AMERICA AND IT MAY FORCE SOME COMPANIES TO REVIEW THEIR OWN PENCHANT FOR USING THE COURTS TO RESOLVE COMMERCIAL DISPUTES THE FINDING IS PART OF AN ONGOING STUDY BY UNIVERSITY OF WISCONSIN SOCIOLOGIST JOEL ROGERS AND RAND INSTITUTE FOR CIVIL JUSTICE SENIOR RESEARCHER TERENCE DUNWORTH ULTIMATELY BY LOOKING AT 1908 COMPANIES THAT HAVE BEEN RANKED AMONG THE FORTUNE 1000 FROM 1971 TO 1991 THE STUDY WILL CHART FEDERAL TRENDS INDUSTRY BY INDUSTRY AND COMPANY BY COMPANY THE RESULTS SO FAR PRESENTED IN DRAFT FORM AT A SYMPOSIUM AT THE UNIVERSITY OF WISCONSIN'S INSTITUTE FOR LEGAL STUDIES TWO WEEKS AGO ALSO SHOW THAT THE ONCESTEADY ANNUAL INCREASES IN OVERALL LEGAL FILINGS INVOLVING FORTUNE 1000 COMPANIES PEAKED IN 1987 AND HAVE DECLINED 21 SINCE THEN SIMILARLY BUSINESS LITIGATION INVOLVING SMALLER COMPANIES AND INDIVIDUALS PEAKED IN 1986 AND HAS SINCE DROPPED 12 WHEN CASES ARE BROKEN DOWN BY CATEGORY THE STUDY SHOWS THAT LABOR AND CIVILRIGHTS CLAIMS HAVE INCREASED IN RECENT YEARS SO HAVE FILINGS INVOLVING A SINGLE PRODUCT SUCH AS ASBESTOSRELATED INJURIES OTHERWISE PRODUCTLIABILITY SUITS AGAINST FORTUNE 1000 COMPANIES HAVE ACTUALLY DROPPED FROM A HIGH OF 3500 IN 1985 TO 1500 IN 1991 I KNOW THAT BUSINESS DOESN'T WANT TO HEAR THAT BUT THESE DATA DON'T SEEM TO LIE SAYS MR ROGERS THE REASONS FOR THE VARIOUS LITIGATION PATTERNS ARE FAR FROM CLEAR HOWEVER FOR EXAMPLE SAYS MR ROGERS THE HIGH INCIDENCE OF COMMERCIAL LEGAL DISPUTES AMONG BUSINESSES MAY BE THE RESULT OF THEIR LITIGIOUSNESS OR MAY JUST REFLECT THE INCREASE IN THE NUMBER OF CONTRACTS IN EFFECT AND THUS POTENTIALLY SUBJECT TO DISPUTE IN A GROWING ECONOMY IN EITHER EVENT THE RESULTS SUGGEST THAT BY POINTING THE FINGER AT PLAINTIFFS' LAWYERS BUSINESS LEADERS AND ADVOCATES OF LEGAL REFORM MAY BE BYPASSING OTHER CONTRIBUTORS TO THE OVERBURDENED CIVILJUSTICE SYSTEM AT LEAST IN THE FEDERAL COURTS IN RESPONSE TO THE STUDY'S FINDING LEGALREFORM ADVOCATES VOICED SKEPTICISM ABOUT WHAT THE FEDERALCOURT RESULTS MAY MEAN THE OVERWHELMING MAJORITY OF PRODUCTLIABILITY CLAIMS ARE FILED IN STATE COURTS SAYS VICTOR SCHWARTZ A LAWYERLOBBYIST IN WASHINGTON DC WHO REPRESENTS BACKERS OF A PROPOSED FEDERAL LAW TO REIN IN SOME PRODUCTLIABILITY CLAIMS STATE COURTS ARE GENERALLY REGARDED BY PLAINTIFFS' LAWYERS AS FRIENDLIER FORUMS FOR PERSONALINJURY AND PRODUCTLIABILITY CLAIMS THAN FEDERAL COURTS AND MOST SUITS AGAINST LOCAL BUSINESSES AND MANUFACTURERS WOULD MORE LIKELY BE FILED IN LOCAL COURTS BUT COMPREHENSIVE STATECOURT DATA ARE NEARLY IMPOSSIBLE TO COMPILE SO STUDIES OF STATE SYSTEMS HAVE BEEN CONFINED TO A LIMITED NUMBER OF COURTS THUS FEW USEFUL COMPARISONS CAN BE MADE WITH THE FEDERAL NUMBERS RESPONDS RAND RESEARCHER MR DUNWORTH IT'S BETTER TO LIGHT A CANDLE THAN TO CURSE THE DARKNESS EVEN IF THAT'S ALL YOU'RE DOING BY LOOKING AT FEDERAL COURTS YOU'RE FURTHER AHEAD THAN YOU WERE MESSRS ROGERS AND DUNWORTH RELIED ON A COMPUTER DATABASE OF MORE THAN FOUR MILLION FEDERAL LAWSUITS BETWEEN 1971 AND 1991 TO IDENTIFY 248 MILLION SUITS THAT INVOLVED AT LEAST ONE BUSINESS ENTITY FORTUNE 1000 COMPANIES WERE INVOLVED EITHER AS PLAINTIFFS OR DEFENDANTS IN 457358 OF THOSE SUITS OR NEARLY 20 ACCORDING TO THE STUDY NOT SURPRISINGLY THEY WERE DEFENDANTS IN VIRTUALLY ALL PERSONALINJURY CASES 95 AND IN MOST LABOR AND CIVILRIGHTS CASES 85 IN CONTRACT DISPUTES FORTUNE 1000 COMPANIES SUED EACH OTHER AS OFTEN AS THEY WERE SUED TO GET A MORE DETAILED LOOK AT HOW FORTUNE 1000 COMPANIES COMPARED WITH OTHER LITIGANTS SUCH AS OTHER BUSINESSES GOVERNMENTS AND INDIVIDUALS THE STUDY EXAMINED 405908 CASES THAT LANDED IN FEDERAL COURT SOLELY BECAUSE THE PARTIES CAME FROM DIFFERENT STATES THUS CREATING SOCALLED DIVERSITY OF JURISDICTION SINCE 1985 RECORDS IN SUCH CASES HAVE INDICATED WHETHER EITHER PARTY IS A CORPORATION LARGE OR SMALL ACCORDING TO THESE RECORDS 43 OF THE CIVIL LAWSUITS INVOLVING FORTUNE 1000 COMPANIES BETWEEN 1985 AND 1991 WERE CONTRACT DISPUTES FOR SMALLER CORPORATIONS THE PERCENTAGE WAS EVEN HIGHER 51 TAKEN TOGETHER BUSINESS DISAGREEMENTS WHETHER AMONG INDIVIDUALS COMPANIES OR CORPORATIONS MADE UP NEARLY HALF OF ALL FEDERAL LITIGATION IN THIS SAMPLE FEDERAL SUITS OVER CONTRACTS OUTPACED ANY OTHER SINGLE CATEGORY OF LITIGATION YET EVEN THESE CASES ARE ON THE DECLINE NOW CONTRACT LAWSUITS PEAKED AT 10253 IN 1987 AND DROPPED 30 TO 7182 IN 1991 A KEY REASON CORPORATE LEGAL EXPERTS SAY IS COMPANIES' GROWING WILLINGNESS TO SETTLE DISPUTES THROUGH ARBITRATION AND MEDIATION WHEN YOU HAVE BUSINESSES SUING BUSINESSES SAYS SHELBY R ROGERS JR GENERAL COUNSEL FOR THE TEXAS MEDICAL ASSOCIATION IN HOUSTON YOU FIND THAT GETTING TO THE COURTHOUSE TAKES A NUMBER OF YEARS AND AS A RESULT WE SEE MANY MORE BUSINESSES GOING TO DIFFERENT FORMS OF ALTERNATIVE DISPUTE RESOLUTION BUT MR ROGERS OF THE TEXAS MEDICAL ASSOCIATION SAYS HE IS YET TO BE PERSUADED THAT FEDERAL LITIGATION TRENDS BEAR ANY RELATION TO WHAT'S HAPPENING IN JURISDICTIONS SUCH AS THE TEXAS STATE COURTS LONG REGARDED AS AMONG THE MOST PROPLAINTIFF IN THE COUNTRY AND EVEN MR DUNWORTH CONCEDES THERE'S A GREAT DEAL OF UNCERTAINTY ABOUT WHAT'S TAKEN PLACE IN STATE COURTS BUT HE ADDS IF THERE ARE SIGNIFICANT TRENDS AT WORK GENERALLY THEY SURELY MUST BE EVIDENT IN FEDERAL COURTS THE SURVEY OF ABOUT 1300 LARGEFIRM LAWYERS AT 158 FIRMS WAS CONDUCTED BY GLOBAL RESEARCH AN ARM OF LONDONBASED EUROMONEY PUBLICATIONS PLC AS PART OF A LARGER STUDY OF LAWFIRM MANAGEMENT PRACTICES IN ADDITION TO LEADING THE OVERALL RANKINGS CRAVATH WAS FIRST CHOICE IN THREE OF THE 19 SUBSPECIALTIES IN WHICH RESPONDENTS ALSO WERE ASKED TO NOMINATE BLOCKBUSTER COMPETITORS THE HARDCHARGING WALL STREET FIRM WHOSE PARTNERS HAVE BEEN KNOWN TO BOAST THAT ITS CAFETERIA IS AS CROWDED AT DINNER AS IT IS AT LUNCH WAS SEEN AS DOMINATING IN TAX SECURITIES AND ASSET FINANCE SKADDEN ECLIPSED OTHERS IN MERGERS AND ACQUISITIONS WHILE WACHTELL LED IN BANKING THE SECONDRANKED FIRM IN BOTH CATEGORIES WAS NEW YORKBASED SHEARMAN & STERLING OTHER CHAMPIONS INCLUDED FULBRIGHT & JAWORSKI HOUSTON ARBITRATION AND LITIGATION WEIL GOTSHAL & MANGES NEW YORK BANKRUPTCY SIMPSON THACHER & BARTLETT NEW YORK ANTITRUST O'MELVENY & MYERS LOS ANGELES CORPORATE AND SIDLEY & AUSTIN CHICAGO ENVIRONMENT ASBESTOS APPEAL KEENE CORP ASKED FULL THE SECOND US CIRCUIT COURT OF APPEALS TO RECONSIDER A DECISION REJECTING THE COMPANY'S ATTEMPT TO LIMIT ITS ASBESTOS LIABILITY THROUGH A MANDATORY CLASSACTION SETTLEMENT A THREEJUDGE PANEL OF THE COURT RULED WEDNESDAY THAT THE TRIAL JUDGE WHO APPROVED THE CLASS ACTION OVERSTEPPED CONSTITUTIONAL BOUNDS NEW YORKBASED KEENE SAID IT WILL ARGUE THAT THE CLASS ACTION MET CONSTITUTIONAL REQUIREMENTS AND THAT THE SETTLEMENT IS A MORE EFFICIENT ALTERNATIVE THAN BANKRUPTCY PROCEEDINGS MARGARET A JACOBS IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9312030018 931203 ECONOMY BIG RETAILERS GOT SLOW START ON THE HOLIDAYS NOVEMBER RESULTS TRAILED FORECASTS BUT EXECUTIVES EXPECT A GOOD SEASON BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S BIGGEST RETAILERS POSTED SLIGHTLY LOWERTHANEXPECTED SALES IN NOVEMBER SIGNALING A SLOW START TO THE CRUCIAL HOLIDAY SHOPPING PERIOD ANALYSTS BLAMED SEVERE STORMS IN THE NATION'S MIDSECTION DURING THE THANKSGIVING WEEKEND AND A TEPID MARKET FOR WOMEN'S APPAREL DESPITE THE DISAPPOINTING RESULTS INDUSTRY EXECUTIVES AND ANALYSTS GENERALLY AGREED THAT IMPROVING CONSUMER CONFIDENCE LOW INTEREST RATES AND THE ACCELERATING PACE OF THE ECONOMIC RECOVERY PROMISE TO DELIVER A GOOD HOLIDAY SHOPPING SEASON SALES IN STORES OPEN AT LEAST A YEAR DURING THE FOURWEEK PERIOD ENDED NOV 27 INCREASED 25 ACCORDING TO A MERRILL LYNCH & CO INDEX AND 29 BASED ON AN INDEX PREPARED BY SALOMON BROTHERS INC ANALYSTS ARE EXPECTING THAT THE DECEMBER GAIN WILL BE 5 OR MORE WITH THE EXCEPTION OF THE SNOWSTORM SALES WERE QUITE GOOD SAID DANIEL BARRY OF MERRILL LYNCH FURTHER SEVERAL BIG RETAILERS ARE SHOWING BUOYANT SALES THIS WEEK MR BARRY ADDED THE HOLIDAY SHOPPING PERIOD IS IMPORTANT BECAUSE MANY RETAILERS DEPEND ON IT TO DELIVER BETWEEN 40 AND 50 OF THEIR ANNUAL PROFITS FOR RETAILERS THE SCENARIO IS BECOMING MORE DICEY AS CONSUMERS CONTINUE A TREND BEGUN SEVERAL YEARS AGO OF POSTPONING THEIR CHRISTMAS SHOPPING UNTIL LATER IN THE SEASON NOVEMBER RESULTS FOUND MODERATEPRICE RETAILERS SUCH AS SEARS ROEBUCK & CO AND JC PENNEY CO FARING BEST FOLLOWED BY DISCOUNTERS AND DEPARTMENT STORES RESPECTIVELY STORES THAT SELL HOME FURNISHINGS APPLIANCES AND CONSUMER ELECTRONICS FARED BETTER THAN STORES THAT SELL PRIMARILY CLOTHING CONSUMER PREFERENCE IN SPENDING IS FOR BIGTICKET NONDEFERRABLE ITEMS SAID JANET MANGANO A RETAIL ANALYST WITH BURNHAM SECURITIES INC THOSE SALES WILL CONTINUE STRONG SOME SPECIALTYCLOTHING STORES CONTINUED TO HAVE DIFFICULTY WHICH INDUSTRY WATCHERS ATTRIBUTE TO THE LACK OF A COMPELLING FASHION TREND IN WOMEN'S APPAREL THE DEVELOPMENT IS LIKELY TO CAUSE SOME RETAILERS TO MAKE UNANTICIPATED PRICE CUTS IN THE COMING WEEKS ANALYSTS SAID BUT SINCE MOST RETAILERS HAVE STOCKED UP FOR ONLY MODEST SALES GAINS OVER LAST YEAR'S BLOCKBUSTER CHRISTMAS WITH THE EXCEPTION OF WOMEN'S APPAREL PRICECUTTING IS LIKELY TO BE MINIMAL ANALYSTS SAY THAT BODES WELL FOR FOURTHQUARTER PROFITS ACCORDING TO RETAIL ANALYST JEFFREY FEINER OF SALOMON BROTHERS GIVEN TIGHT EXPENSE AND INVENTORY POSITIONS WE EXPECT A 10 TO 15 PROFIT INCREASE FOR THE FIVEWEEK CHRISTMAS SELLING SEASON PERHAPS THE MOST SUCCESSFUL OF THE BIG RETAILERS SO FAR THIS SEASON IS PENNEY WHICH REPORTED A SAMESTORE SALES INCREASE OF 123 LAST MONTH COMPANY OFFICIALS SAID PENNEY IS BENEFITING FROM A MOVE TO LOWER PRICES AND FROM A STEPPEDUP ADVERTISING CAMPAIGN THE RETAILER SAID IT IS SPENDING 60 MILLION THIS QUARTER ON ADVERTISING A 30 INCREASE FROM A YEAR AGO ARCHRIVAL SEARS ALSO DID WELL IN NOVEMBER TURNING IN A 79 SALES INCREASE CHAIRMAN EDWARD A BRENNAN SAID APPLIANCE AND HOMEFURNISHING SALES ALONG WITH STRONGER SALES IN ITS REFURBISHED WOMEN'SAPPAREL DEPARTMENT CONTRIBUTED TO THE RESULTS IF CONSUMER CONFIDENCE CONTINUES TO GROW AND IF HOUSING CONTINUES TO DO AS WELL AS IT IS THAT SHOULD BE A GOOD ENVIRONMENT FOR OUR SALES MR BRENNAN SAID WALMART STORES INC THE NATION'S LARGEST RETAILER REPORTED A 4 SAMESTORE SALES GAIN AN UNUSUALLY SOFT PERFORMANCE THAT THE COMPANY ATTRIBUTED TO DISAPPOINTING SALES AT ITS SAM'S CLUB WAREHOUSE STORES SALES IN THAT DIVISION WERE DOWN 7 FROM A YEAR EARLIER KMART CORP CONTINUED TO LOG MIXED RESULTS ITS US DISCOUNTSTORE CHAIN SHOWED A 46 SALES INCREASE BUT ITS SPECIALTYSTORE CHAIN WHICH INCLUDES BUILDERS SQUARE SPORTS AUTHORITY AND WALDENBOOKS POSTED A 34 DECLINE OTHER DISCOUNTERS AND OFFPRICE RETAILERS HAD DIFFICULTY AS WELL WOOLWORTH CORP REPORTED A MEAGER 15 SALES GAIN TJX COS REPORTED FLAT SALES WHILE CALDOR CORP REPORTED A 14 DECLINE DEPARTMENTSTORE RESULTS WERE STEADY BUT NOT STRONG MAY DEPARTMENT STORES CO THE NATION'S LARGEST DEPARTMENT STORE CHAIN REPORTED A SAMESTORE SALES INCREASE OF 21 FEDERATED DEPARTMENT STORES INC REPORTED A SCANT 09 SAMESTORE SALES RISE WHILE CARTER HAWLEY HALE STORES INC HAD A 26 INCREASE DILLARD DEPARTMENT STORES INC REPORTED FLAT SALES FOR THE PERIOD SALES FOR GAP INC A ONETIME HIGHFLIER THAT HAS STRUGGLED THIS YEAR REPORTED A SURPRISINGLY STRONG 5 SALES GAIN DAYTON HUDSON CORP WHICH OPERATES DISCOUNT AND MODERATE AND UPSCALE DEPARTMENT STORES REPORTED A 54 SALES SLIDE IN NOVEMBER ANOTHER COMPANY POSTING DISAPPOINTING RESULTS WAS LIMITED INC WHICH WEIGHED IN WITH A 7 DECLINE LIMITED FELL 3375 TO L8125 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING DILLARD FELL 1125 TO 3950 WALMART SLIPPED 625 CENTS TO 27875 AND MAY DEPARTMENT STORES FELL 1125 TO 4125 BUT GAP EDGED UP 625 CENTS TO 4075 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 9312030017 931203 LETTERS TO THE EDITOR WHEN BACK YARDS ARE THREATENED BRAINLESS BUREAUCRACIES ARE AN EASY AND APPROPRIATE SCAPEGOAT FOR MANY OF SOCIETY'S ILLS BUT YOUR EDITORIALS WERE DEAD WRONG TO PIN THE BLAME ON THE NEW YORK CITY HOUSING AUTHORITY FOR THE PROPOSED MOVING OF A TEMPORARY COMMUNITY GARDEN ON MANHATTAN'S UPPER WEST SIDE TO MAKE WAY FOR THE CONSTRUCTION OF A SMALL DESPERATELY NEEDED LOWINCOME HOUSING COMPLEX BUREAUCRATIC KUDZU SEPT 27 AND MORE BUREAUCRATIC KUDZU NOV 10 THE CONTROVERSY OVER THE DOME GARDEN CANNOT AS YOU SUGGEST BE ATTRIBUTED TO POOR HOUSING POLICY OR OFFICIALS GONE BANANAS ON THE CONTRARY THIS IS JUST ONE MORE INSTANCE WHERE A DEVELOPMENT THAT SERVES THE GREATER PUBLIC GOOD HAS RUN AFOUL OF THE PAROCHIAL INTERESTS OF ITS IMMEDIATE NEIGHBORS IN 1989 NEW YORKERS VOTED OVERWHELMINGLY FOR A NEW CITY CHARTER THAT PROVIDED AMONG OTHER THINGS FOR PROMOTING A FAIR SHARE OF BOTH AMENITIES AND LESS DESIRABLE PUBLIC FACILITIES THROUGHOUT ALL COMMUNITIES OF THE FIVE BOROUGHS THE CHARTER REFLECTS A COMMITMENT TO RACIAL AND ECONOMIC INTEGRATION THAT HAS DISTINGUISHED NEW YORK AND ENABLED IT TO ENJOY FAR GREATER ECONOMIC PROSPERITY AND STABILITY THAN MOST OF AMERICA'S OLDER CITIES THIS IS THE CASE OF THE UPPER WEST SIDE WHERE RENTS AND PROPERTY VALUES ARE AMONG THE HIGHEST IN THE CITY THE WEST SIDE TODAY IS ECONOMICALLY AND RACIALLY INTEGRATED LARGELY BECAUSE OF PUBLIC HOUSING BUILT THERE MORE THAN 40 YEARS AGO BUT GOVERNMENT SIMPLY CANNOT AFFORD TO PURCHASE AND CLEAR MORE LAND IN THIS AREA AND AS A RESULT THE FEW PARCELS THAT HAVE BEEN INVENTORIED FOR AFFORDABLE HOUSING ARE PRECIOUS WITH NEARLY 270000 FAMILIES ON THE PUBLIC HOUSING WAITING LIST THE DEVELOPMENT OF THESE SITES FOR HOUSING MUST HAVE PRIORITY OVER ALTERNATIVE USE THE SITE IN QUESTION WAS ACQUIRED AND CLEARED FOR AFFORDABLE HOUSING MORE THAN 20 YEARS AGO AT THE PUBLIC'S EXPENSE FEDERAL CUTBACKS IN ASSISTED HOUSING PROGRAMS COUPLED WITH THE NIMBY SYNDROME DERAILED THE PROJECT FOR MANY YEARS RATHER THAN MAINTAIN AN EMPTY LOT THE CITY ALLOWED THE SITE TO BE USED AS A GARDEN IN THE INTERIM THOUGH AGREED TO BY ALL PARTIES AS AN INTERIM USE THIS POLICY TURNED INTO SOMETHING OF A FRANKENSTEIN MONSTER HAVING CREATED A SMALL BUT POLITICALLY WELLCONNECTED CONSTITUENCY THAT NOW SEEKS TO BLOCK THE USE FOR WHICH THE PROPERTY WAS ACQUIRED IN THE FIRST PLACE PUBLIC HOUSING ADDING TO THE FRUSTRATION IS THE REALITY THAT THE PROPOSED HOUSING IS THE MODEL FOR PUBLIC HOUSING THAT EVERYONE SAYS THEY WANT IT IS SMALL ONLY 35 APARTMENTS AND OFFERS FAMILYSIZE APARTMENTS AT RENTS AVERAGING 255 PER MONTH MOREOVER THE HOUSING AUTHORITY HAS COMMITTED TO RELOCATE THE DOME COMMUNITY GARDEN TO SPACE ACROSS THE STREET FROM THE SITE WE HAVE ASSURED OUR OPPONENTS THAT THE NEIGHBORHOOD WILL NOT LOSE ANYTHING GREEN AND LEAFY BUT OBVIOUSLY THAT ISN'T ENOUGH FOR THEM THIS ADAMANT REFUSAL TO ACCOMMODATE THE HOUSING AND THE GARDEN CAN THEREFORE BE SEEN TO REPRESENT ONLY ONE THING NOT IN MY BACK YARD 9312030015 931203 BUSINESS BRIEF INSURANCE AUTO AUCTIONS INC ACQUISITION OF ALLSTATE UNIT IN STOCK DEAL IS COMPLETED INSURANCE AUTO AUCTIONS INC A NORTH HOLLYWOOD CALIF USEDCAR BROKER SAID IT COMPLETED THE PURCHASE OF THE TECHCOR INC UNIT OF ALLSTATE CORP FOR ABOUT 17 MILLION SHARES OF STOCK INSURANCE AUTO AUCTIONS CLOSED YESTERDAY AT 38 A SHARE IN NASDAQ STOCK MARKET TRADING GIVING THE TRANSACTION A VALUE OF ABOUT 64 MILLION TECHCOR BASED IN WHEELING ILL OPERATES FIVE SALVAGE POOLS THAT PROCESS CARS THAT HAVE BEEN DECLARED A TOTAL LOSS AFTER AN ACCIDENT OR WHICH HAVE BEEN RECOVERED AFTER A THEFT INSURANCE AUTO AUCTIONS MANAGES OPERATIONS IN FOUR STATES ALLSTATE IS 80OWNED BY SEARS ROEBUCK & CO 9312030014 931203 YOU MIGHT CALL THIS FOOTBALL LITE BUT IT KEEPS A RITUAL ALIVE TOWNS IN GREAT PLAINS RELY ON SIXMAN SCHOOL TEAMS TO BOOST THEIR SPIRITS BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL AMHERST TEXAS AT THE KICKOFF A WINTRY STORM IS HOWLING THROUGH THIS PLAINS TOWN MOST OF THE FANS ARE PARKED HUBCAPTOHUBCAP AROUND THE FOOTBALL FIELD ROOTING FOR THE AMHERST BULLDOGS FROM THE CABS OF SNUG PICKUP TRUCKS ON THE VERY FIRST PLAY FROM SCRIMMAGE AN AMHERST DEFENSIVE PLAYER SCOOPS UP A FUMBLE BY THE VISITING THREE WAY EAGLES AND RUNS IT IN FOR A TOUCHDOWN INSTANTLY THE PICKUPS BURST INTO HAPPY HONKING WHILE THE JUBILANT BULLDOGS ALL SIX OF THEM MOB EACH OTHER IN THE END ZONE YES SIX IT'S FRIDAY NIGHT FOOTBALL SIXMAN STYLE PLAYED HERE UNDER THE LIGHTS ONLY A 50YARD PUNT AWAY FROM A SNOWDUSTED FIELD OF UNPICKED COTTON SIXMAN FOOTBALL ONCE POPULAR IN THE 1930S AND 1940S IS MAKING A COMEBACK ON THE GREAT PLAINS MAINLY OUT OF NECESSITY DWINDLING RURAL POPULATIONS ARE FORCING MANY SMALLTOWN HIGH SCHOOLS TO ABANDON 11MAN FOOTBALL FROM BLUE SKY MONT TO HONDO NM BOYS ARE PLAYING SIXONSIX FOR 157 SCHOOLS UP 134 OVER THE PAST DECADE THE SIXMAN REVIVAL IS STRONGEST IN THE LONELIER REACHES OF NEBRASKA WHERE THE NUMBER OF SCHOOLS SWITCHING TO SIX HAS JUMPED EIGHTFOLD SINCE 1982 AND IN THE TEXAS PANHANDLE WHERE SIXMAN FOOTBALL HAS ITS HARDIEST ROOTS DESPITE A FLYING WEDGE OF ARCTIC AIR THE BOYS FROM AMHERST HIGH SCHOOL AND THREE WAY A COUNTRY SCHOOL WITH ONLY 26 STUDENTS SITTING IN THE EMPTINESS OF WEST TEXAS DEMONSTRATE THE CROWDPLEASING APPEAL OF SIXMAN FOOTBALL WIDEOPEN HIGHSCORING OFFENSES WITH EVERYBODY ELIGIBLE FOR A PASS OPERATING ON AN 80YARD FIELD IT IS A SPRINTER'S GAME AND THE SPEEDY BULLDOGS ARE RIPPING OFF YARDAGE OBLIVIOUS TO THE WINDCHILL OF MINUS10 DEGREES AND TO HOW IMPORTANT A TEAM OF TEENAGERS IS TO A TOWN IN DECLINE DURING THE FALL BULLDOG GAMES ARE THE SOCIAL EVENT OF THE WEEK OFTEN DRAWING 500 FANS THIS IS LIKE HAVING CHRISTMAS EVERY FRIDAY NIGHT EXULTS DENNIS POINTER A FARMER AND A LEADING BULLDOG BOOSTER FOR MANY ADDS AMHERST COACH JACK SHELY IT IS AN ESCAPE AT LEAST ONE NIGHT A WEEK THEY DON'T HAVE TO WORRY ABOUT HOW THEY'RE GOING TO PAY THE MORTGAGE OR MAKE THE TRACTOR PAYMENT FOR THE TOWN FATHERS WHO OPTED TO FIELD A SIXMAN TEAM RATHER THAN GIVE UP FOOTBALL THE GAMES ARE PART OF A BIGGER STRUGGLE AGAINST DEMOGRAPHIC AND ECONOMIC FORCES THAT THREATEN TO SNUFF OUT A WAY OF LIFE AMHERST POPULATION 742 LOST 24 OF ITS PEOPLE DURING THE FARM DEPRESSION OF THE 1980S MORE THAN WERE LOST DURING THE DUST BOWL EXODUS OF THE 1930S AS FARMERS SOLD OUT THE BUSINESSES THEY PATRONIZED FOLDED AND ONE GRADUATING CLASS AFTER ANOTHER LEFT TOWN IN SEARCH OF A FUTURE TODAY AMHERST HIGH HAS JUST 66 STUDENTS LAMENTS CAROLYN HARMON THE JUSTICE OF THE PEACE WE'RE BECOMING BASICALLY A TOWN OF RETIREES AMHERST IS A TOWN OF TORNADO CELLARS AND TIN ROOFS AS WELL BUILT WITHOUT PRETENSIONS ONLY THE BANKER LIVES IN A TWOSTORY HOUSE BEHIND A SCREEN OF CHINESE ELMS AND OAKS ON THE MORNING OF THE GAME SNOW SQUALLS CHASE DIRTY BITS OF COTTON FUZZ FROM THE TOWN'S MAIN ENTERPRISE COTTON GINNING DOWN UNPAVED SIDE STREETS TUMBLEWEED IS PILING UP AGAINST THE SOUTH PLAINS HOSPITAL CLOSED IN 1989 FOR WANT OF DOCTORS THE TOWN AMBULANCE LIGHTS TWIRLING SPEEDS BY ON A RUN TO A NEIGHBORING TOWN'S HOSPITAL AMHERST ONCE HAD FIVE DOCTORS INCLUDING AN OBSTETRICIAN THERE WEREN'T ENOUGH PEOPLE HAVING BABIES TO SUPPORT HER SAYS CLYDE BROWNLOW THE LOCAL PHARMACIST MEANWHILE AMHERST MANOR WHICH REOPENED LAST YEAR AS THE FINEST LITTLE NURSING HOME IN WEST TEXAS IS ON THE UPSWING AND STILL EXPLOITING LOCAL BIBLE BELT PROHIBITIONS AGAINST ALCOHOL IS THE TOWN'S 88YEAROLD BOOTLEGGER WHO SELLS BRANDNAME BOOZE BY THE FRUIT JAR MAIN STREET IS RIGHT OUT OF THE LAST PICTURE SHOW THE 1971 FILM ABOUT LIFE IN A SHABBY TEXAS TOWN THREE BLOCKS OF COMMERCIAL BLEAKNESS BRIGHTENED ONLY BY A BANK A GROCERY A DEPARTMENT STORE AND A FEW OTHER GOING CONCERNS NOTHING IS STIRRING IN THE COLD WIND NOT A CAR NOT A CUSTOMER EXCEPT FOR A LOST SCARF FLAPPING ON THE SCREEN DOOR TO ANNIE'S POOL HALL ONE OF MANY ABANDONED STOREFRONTS YES IT'S GONE DOWNHILL BUT I'VE BEEN HERE TOO LONG TO BE SAD SAYS ROEANE WEAVER AN 81YEAROLD WIDOW MRS WEAVER'S LIFE ENCOMPASSES AMHERST'S ENTIRE HISTORY SHE WAS 11 IN 1923 WHEN CATTLE BARON WE HALSELL PLATTED THE TOWN AND SOLD PARCELS OF RANGELAND TO HER FATHER AND OTHER SETTLERS SHE GREW UP IN A DUGOUT A RAMSHACKLE HOUSE HALF DUG INTO THE SOD AND WORE BLACK BLOOMERS WHILE PLAYING BASKETBALL FOR AMHERST HIGH AT AGE 16 SHE FELL IN LOVE WITH THE CATCHER FOR THE AMHERST REDS WHO PADDED HIS GLOVE WITH A ROUND OF STEAK WE GOT MARRIED ON SATURDAY NIGHT AND HE PLAYED BASEBALL ON SUNDAY SHE STILL LIVES ON THE SAME FARM THAT SHE AND HER LATE HUSBAND BEGAN TILLING IN 1929 SHE SOLD EGGS AND CREAM IN TOWN FOR GROCERY MONEY AND FOR YEARS BATTLED SANDSTORMS WITH SCOOP AND BROOM AT KAREN'S KUT & KURL MRS WEAVER IS HAVING HER SILKY SILVER HAIR DONE IN WHAT SHE CALLS AN OLDFASHIONED WAVE WHILE THREE OTHER ELDERLY WOMEN ARE UNDER HAIRDRYERS WE WANT LOOK TO PRETTY FOR THE WEEKEND EXPLAINS MRS WEAVER WHO ROOTS FOR THE BULLDOGS ON FRIDAY NIGHTS AND PLAYS DOMINOES ON SATURDAY NIGHTS FOR MANY HERE THE WEEKEND BEGINS WITH THE FRIDAY AFTERNOON PEP RALLY AT AMHERST HIGH THE ENTIRE TEAM 17 BOYS IN LETTER JACKETS FEIGNING NONCHALANCE SAUNTERS INTO AN OLD BRICK BARN OF A GYM FOLLOWED BY CARTWHEELING CHEERLEADERS CHARGING UP THE TEAM WITH BULLDOG POWER CHANTS AND CHEERS ARE MOST OF THE SCHOOL'S STUDENTS AS WELL AS PARENTS AND SIBLINGS THE RALLY ENDS WITH THE SINGING OF THE SCHOOL'S ALMA MATER AS THE LAST LILTING REFRAIN DIES IN THE RAFTERS A FATHER IN A BLACK STETSON BRUSHES AWAY A TEAR AT DUSK THE FOOTBALL LIGHTS COME ON A BRIGHT BEACON FOR FANS LIVING FAR OUT ON THE PLAINS HEADLIGHTS APPEAR ON THE LASERSTRAIGHT ROADS CARS BOUND FOR THE GAME A RAGGED VEE OF SANDHILL CRANES FLYING FOR THE SHELTER OF A PRAIRIE SLOUGH PASSES SOUNDLESSLY OVER THE ROAD TO AMHERST JUST AHEAD OF THE THREE WAY EAGLES' BUS THE EAGLES OPERATE A RUNANDSHOOT OFFENSE SPREADING PLAYERS ACROSS THE FIELD AND SENDING THEM DOWNFIELD FOR PASSES FREQUENTLY THROWN FOR A COUNTRY MILE THIS NIGHT COLD HANDS AND A FIERCE CROSSWIND MAKE THEM MISFIRE MORE OFTEN THAN NOT MEANTIME THE BULLDOGS WHO AVERAGE ONLY 155 POUNDS ARE RELENTLESS AND REMORSELESS SCORING ALMOST AT WILL WITH A RAZZLEDAZZLE RUNNING ATTACK AT TIMES IT SEEMS MORE LIKE FASTBREAK BASKETBALL THAN GRINDITOUT FOOTBALL WATCHING THE GAME FROM A BIG CHEVY SUBURBAN IS POLLY GREENER 68 GRANDMOTHER OF AMHERST'S STAR RUNNING BACK TORREY TOLBERT AND A PLAINSWOMAN SHE LIVES ALONE ON A FARM IN THE LEE OF A PECAN ORCHARD I DON'T KNOW HOW MANY HE'S SCORED SAYS MRS GREENER I CAN'T KEEP UP WITH HIM SITTING IN THE CAR SHE'S QUITE CONTENT TO LET HER DAUGHTER VIDEOTAPE THE BOY'S EXPLOITS THREE LONG RUNS FOR TOUCHDOWNS FROM THE STANDS BY HALFTIME IT IS 340 ON THE PAYNSAVE SCOREBOARD AND THE OUTMANNED EAGLES WITH ONLY THREE SKINNY SUBS TO SPELL THE STARTING SIX ARE CLEARLY TIRING TO THE DELIGHT OF AMHERST FANS MANY WRAPPED IN SLEEPING BAGS THE SCORE MOUNTS IN THE THIRDQUARTER EVERY BULLDOG EVEN A 100POUND FRESHMAN END PLAYS WHEN IT'S 546 THE GAME IS CALLED UNDER THE SOCALLED SLAUGHTER RULE MRS GREENER LEAVES WITH A WARM FEELING ABOUT THE TEAM AND HER TOWN WE NEED SPORTS AND WE NEED OUR LITTLE SCHOOL SHE SAYS WE NEED TO KEEP OUR LITTLE TOWN I'D HATE TO THINK OF MY GRANDCHILDREN GROWING UP ANYWHERE ELSE 9312030013 931203 RULING MAY PUSH UP THE PRICE OF CEREDASE GENZYME'S KEY DRUG CAMBRIDGE MASS A RULING BY FRANCE'S HEALTH MINISTRY THREATENS TO PUSH UP THE PRICE OF PRODUCING THE GAUCHER'S DISEASE DRUG CEREDASE SAID ITS MAKER GENZYME CORP WHICH IS UNDER FIRE OVER THE DRUG'S 140000 ANNUAL PRICE CEREDASE IS GENZYME'S MAIN DRUG PRODUCT ACCOUNTING FOR HALF ITS 2032 MILLION REVENUE IN THE NINE MONTHS ENDED SEPT 30 GENZYME SAID IT WILL TRY TO PUSH SOME OF THE 22 MILLION A YEAR ADDED COST ONTO PATIENTS AND BACK TO PASTEUR MERIEUX ITS FRENCH SUPPLIER BUT IT SAID IT WILL HAVE TO SWALLOW SOME OF THE COST IN TRADING ON THE NASDAQ STOCK MARKET YESTERDAY GENZYME SHARES FELL 2 OR 65 TO CLOSE AT 29 EVERYBODY KNOWS 1994 IS GOING TO BE A TRANSITION YEAR FOR GENZYME AND THE COST INCREASE TO CEREDASE IS YET ANOTHER SETBACK SAID DAVID MOLOWA ANALYST FOR BEARN STEARNS & CO THE FRENCH MINISTER OF HEALTH ON WEDNESDAY ISSUED A DIRECTIVE TO STOP PRODUCTION OF HUMAN ALBUMIN FROM PLACENTA WHILE HUMAN ALBUMIN IS NOT AN INGREDIENT IN CEREDASE GCR WHICH IS ALSO EXTRACTED FROM HUMAN PLACENTA IS MR MOLOWA SAID THE FRENCH ACTION IS PART OF A MOVE TO REDUCE USAGE OF HUMANDERIVED SUBSTANCES IN THE WAKE OF A TAINTED BLOOD SCANDAL PLACENTA COSTS WERE SHARED BY BOTH HUMAN ALBUMIN AND GCR EXTRACTORS BUT THE MOVE SHIFTS THE COST BURDEN TO GCR'S SIDE THE COST INCREASE COMES AS GENZYME UNDER PRESSURE FROM CONGRESS HAS BEEN TRYING TO REDUCE THE PRICE OF CEREDASE THE ONLY GOVERNMENTAPPROVED DRUG TREATMENT OF GAUCHER'S A SOMETIMES FATAL LIVER AND SPLEEN DISEASE MR MOLOWA HAS SCALED BACK HIS 1994 EARNINGS ESTIMATES OF 195 FOR GENZYME BY FIVE CENTS TO 10 CENTS 9312030012 931203 MERRYGOROUND'S THIRDQUARTER LOSS WAS 385 MILLION JOPPA MD MERRYGOROUND ENTERPRISES INC REPORTED A 385 MILLION NET LOSS FOR THE THIRDQUARTER MAINLY FROM A 351 MILLION CHARGE TO WRITE DOWN SLOWMOVING MERCHANDISE BUT THE APPAREL RETAILER'S SHARES ROSE 21 ON NEWS THAT ITS FOUNDER AND CHAIRMAN LENNY WEINGLASS HAS TAKEN OVER MERCHANDISING STRATEGY AT THE COMPANY MR WEINGLASS 52 YEARS OLD MOST RECENTLY SERVED AS A CONSULTANT TO THE COMPANY FOR ITS WOMEN'S APPAREL DIVISION IN THE MERCHANDISING POST HE SUCCEEDS STUART LUCAS WHO RESIGNED WEDNESDAY AS PRESIDENT OF MERCHANDISING FOR THE QUARTER ENDED OCT 30 THE COMPANY REPORTED A NET LOSS OF 385 MILLION OR 71 CENTS A SHARE INCLUDING THE ONETIME NONCASH CHARGE EQUAL TO 65 CENTS A SHARE A YEAR AGO THE COMPANY HAD NET INCOME OF 105 MILLION OR 20 CENTS A SHARE SALES ROSE 11 TO 2555 MILLION FROM THE YEARAGO 2298 MILLION THE COMPANY SAID 75 OF THE CHARGE COULD BE ATTRIBUTED TO A WRITEDOWN OF SLOWMOVING MERCHANDISE SAMESTORE SALES HAVE TUMBLED IN RECENT MONTHS AND FELL 15 IN THE LATEST QUARTER WITHOUT THE CHARGE THE COMPANY HAD AN OPERATING LOSS OF 34 MILLION OR SIX CENTS A SHARE MERRYGOROUND SAID THE CHARGE ALSO COVERS PREVIOUSLYANNOUNCED CLOSINGS OF 80 STORES NATIONWIDE OVER THE NEXT TWO YEARS 50 OF THE CHESS KING CHAIN WHICH THE COMPANY RECENTLY ACQUIRED AND 30 MERRYGOROUND STORES THE CHAIN CURRENTLY HAS 1460 STORES MAINLY IN SHOPPING MALLS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY MERRYGOROUND SHARES ROSE 1125 TO 650 MR WEINGLASS CALLED THE PRICE SURGE A DECISION BY SHAREHOLDERS THAT WITH THE WRITEDOWNS AND CLOSINGS THE WORST IS NOW OVER 9312030011 931203 TECHNOLOGY MEDIMMUNE DRUG MISSES FDA HURDLE SHARES PLUMMET 30 DEALING ANOTHER BLOW TO THE BIOTECHNOLOGY INDUSTRY A FOOD AND DRUG ADMINISTRATION PANEL VOTED UNANIMOUSLY AGAINST RECOMMENDING A MEDIMMUNE INC ANTIBODY PRODUCT RESPIGAM FOR USE AGAINST A VIRUS THAT INFECTS MORE THAN HALF OF ALL INFANTS IN THEIR FIRST YEAR THE DECISION SENT THE STOCK PLUMMETING 30 OR 7 TO 16 IN HEAVY NASDAQ STOCK MARKET TRADING THE STOCK HAS LOST ABOUT HALF ITS VALUE SINCE A RUNUP IN MIDNOVEMBER ON NEWS THAT A STUDY SUPPORTING THE DRUG WAS PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE AND ON WORD THAT THE FDA PANEL WOULD REVIEW THE DRUG THE FEDERAL AGENCY USUALLY BUT NOT ALWAYS FOLLOWS THE RECOMMENDATIONS OF ITS EXPERT PANELS DAVID M MOTT MEDIMMUNE'S VICE PRESIDENT OF DEVELOPMENT AND PLANNING DECLINED TO COMMENT ON THE PANEL'S DECISION OR WHAT THE COMPANY WILL DO IN RESPONSE THE NEW ENGLAND JOURNAL STUDY WHICH WAS PRESENTED AT THE FDA PANEL MEETING FOUND THE DRUG TO BE EFFECTIVE AGAINST THE RESPIRATORY SYNCYTIAL VIRUS WHICH IS THE LEADING CAUSE OF VIRAL PNEUMONIA IN EARLY CHILDHOOD BUT MEMBERS OF THE FDA STAFF VOICED CONCERNS ABOUT THE STUDY'S METHODOLOGY AND THE FACT THAT DENVER WAS THE ONLY SITE IN THE TRIAL WHERE THE DRUG'S EFFICACY WAS STATISTICALLY SIGNIFICANT ACCORDING TO FEDERAL FILINGS THE PANEL RECOMMENDED THE COMPANY DEVELOP ADDITIONAL DATA ON THE SAFETY AND EFFECTIVENESS OF RESPIGAM MEDIMMUNE IS CONDUCTING A FOLLOWUP STUDY ON THE DRUG'S EFFECT ON CHILDREN WITH HEART PROBLEMS SIX CHILDREN MOST WITH HEART PROBLEMS DIED DURING THE INITIAL STUDY WHICH THE RESEARCHERS SAID DIDN'T APPEAR TO BE LINKED TO THE DRUG 9312030009 931203 BRITAIN'S CHANCELLOR OF THE EXCHEQUER LINES UP ON THE SIDE OF SMALL BUSINESS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IF THE 1990S ARE TO BE THE DECADE FOR THE GROWTH OF SMALL BUSINESSES IN EUROPE KENNETH CLARKE AIMS TO BE THERE TO HELP FAR MORE SMALL BUSINESSES FAR MORE SELFEMPLOYED FAR MORE HIGHTECH INDUSTRIES ALL THAT IS NECESSARY IF IN MODERN TIMES YOU ARE GOING TO HAVE A SUCCESSFUL ECONOMY THAT WILL EMPLOY MORE OF THE WORK FORCE PROCLAIMED BRITAIN'S CHANCELLOR OF THE EXCHEQUER PUTTING HIS MONEY WHERE HIS MOUTH IS MR CLARKE UNVEILED A SERIES OF MEASURES THIS WEEK IN HIS 199495 BUDGET SPECIFICALLY TO HELP SMALL BUSINESSES INCLUDING TAX INCENTIVES FOR INVESTORS LOWER SOCIAL SECURITY CHARGES AND A REDUCTION IN RED TAPE AFTER TWO YEARS OF RECESSION HIS ANNOUNCEMENTS WERE MUSIC TO THE EARS OF BRITAIN'S SMALL BUSINESS COMMUNITY THIS IS PROBABLY THE BEST SMALLBUSINESS BUDGET EVER SAID STAN MENDHAM THE CHIEF EXECUTIVE OFFICER OF FORUM OF PRIVATE BUSINESS A SMALLBUSINESS LOBBY GROUP HERE IS CLEAR RECOGNITION THAT SMALL BUSINESSES LEAD THE ECONOMY RATHER THAN FOLLOW IT INDEED MR MENDHAM IS READY TO ARGUE THAT THANKS TO THE NEW MEASURES SMALL BUSINESSES ARE BETTER OFF IN BRITAIN FROM A FISCAL AND FINANCING POINT OF VIEW THAN ALMOST ANYWHERE ELSE IN EUROPE WITHOUT GOING SO FAR THE THEME OF SMALLBUSINESS GROWTH IS ONE THAT BRITAIN'S CONSERVATIVE GOVERNMENT WILL BE PLUGGING IN MEETINGS WITH ITS EUROPEAN PARTNERS IN MONTHS TO COME RATHER THAN SEEKING EXTRA JOBS THROUGH MECHANISMS LIKE JOBSHARING AND SHORTER WORKING HOURS BRITISH OFFICIALS WILL ARGUE WHAT'S NEEDED TO BOOST EMPLOYMENT IS GREATER FREEDOM FOR ENTREPRENEURS TO CREATE AND SPREAD WEALTH SO HOW IS HE SETTING ABOUT IT AS POLITICIANS ELSEWHERE IN EUROPEAN WRESTLE WITH SIMILAR PROBLEMS THEY MAY FIND SOME USEFUL HINTS IN HIS BUDGET BUT HIS PROPOSALS ARE DESIGNED TO HELP SMALL COMPANIES FIND FUNDING AND GET ON WITH BUSINESS WITH AS LITTLE INTERFERENCE AS POSSIBLE AS A COUNTRY MR CLARKE TOLD PARLIAMENT WE GENERATE PLENTY OF BUDDING ENTREPRENEURS AND ANY NUMBER OF GOOD INVENTIONS AND IDEAS YET ALL TOO OFTEN THOSE IDEAS STAY ON THE DRAWING BOARD AS MONEY IS CHANNELED INSTEAD INTO THE SAFER LARGER COMPANIES SOME OF HIS PROPOSALS ARE SPECIFICALLY AIMED AT BRITAIN'S SMALLEST BUSINESSES INCOMETAX ASSESSMENTS FOR SELFEMPLOYED PEOPLE ARE TO BE SIMPLIFIED THE THRESHOLD BEYOND WHICH COMPANIES HAVE TO REGISTER FOR VALUE ADDED TAX CALCULATED IN TERMS OF THEIR ANNUAL TURNOVER IS TO BE RAISED FROM 37600 55554 TO 45000 ALLOWING AS MANY AS 75000 MORE TRADERS TO AVOID THE HASSLE OF DRAWING UP VAT ACCOUNTS COMPANIES WITH TURNOVER OF BELOW 90000 A YEAR ARE TO BE EXEMPTED FROM AN OBLIGATION AT PRESENT AFFECTING ALL LIMITED COMPANIES TO FILE AUDITED ANNUAL ACCOUNTS COMPANIES WITH TURNOVER OF BETWEEN 90000 AND 350000 A YEAR WILL NEED ONLY TO OBTAIN AN INDEPENDENT ACCOUNTANT'S REPORT CERTIFYING THAT THEIR ACCOUNTS ACCURATELY REFLECT THE STATE OF THEIR BOOKS RATHER THAN A FULL AUDIT ALL COMPANIES WILL BENEFIT FROM PLANS TO UNIFY THE PAPERWORK INVOLVED IN LEVYING INCOME TAX AND SOCIAL SECURITY CONTRIBUTIONS COMPANIES ALSO WILL BENEFIT FROM A ONEPERCENTAGEPOINT CUT IN SOCIAL SECURITY CHARGES FOR WORKERS PAID LESS THAN 200 A WEEK A CATEGORY THAT INCLUDES EMPLOYEES OF MANY SMALL BUSINESSES COMPANIES OF ALL SIZES WILL ALSO BE HELPED BY GOVERNMENT PLANS TO ENCOURAGE DEBTORS TO PAY CREDITORS IN A TIMELY FASHION AT PRESENT BRITAIN'S SMALLBUSINESS SECTOR IS OWED APPROXIMATELY 50 BILLION IN OVERDUE PAYMENTS ACCORDING TO MR MENDHAM IT ISN'T YET CLEAR HOW SPEEDING UP PAYMENTS IS TO BE ACHIEVED BUT MR CLARKE HAS PROMISED TO EMBARK ON A PROCESS OF CONSULTATION WITH BUSINESSES WHILE AT THE SAME TIME COMMITTING GOVERNMENT DEPARTMENTS TO PAY FOR MOST CONTRACTS WITHIN ONE MONTH ONE POSSIBILITY AT A NATIONAL LEVEL COULD BE LEGISLATION ALLOWING COMPANIES TO CHARGE INTEREST ON OVERDUE PAYMENTS ANOTHER COULD BE THE CREATION OF A NEW BRITISH STANDARDS MARK RECOGNIZING PROMPT PAYERS LOWER TAX CHARGES LESS RED TAPE AND EVEN PROMPT PAYMENTS WON'T BE ENOUGH TO ENCOURAGE ENTREPRENEURS OF COURSE FOR MANAGERS AND EMPLOYEES TO LEAVE STEADY JOBS AND TAKE A CHANCE BY GOING INTO BUSINESS ON THEIR OWN THE RISK MUST BE WORTHWHILE MR CLARKE ACKNOWLEDGED SO TO HELP ENSURE THAT IT IS HE ALSO ANNOUNCED CHANGES IN BRITAIN'S FISCAL ENVIRONMENT ENTREPRENEURS WHO SELL THEIR COMPANIES ON RETIREMENT WILL SEE THE BURDEN OF CAPITAL GAINS TAX ON ANY PROFITS THEY MAKE REDUCED PROFITS FROM SUCH SALES WILL BE FREE OF CAPITAL GAINS TAX UP TO 250000 AN INCREASE OF 100000 ON THE PREVIOUS CEILING AND SUBJECT TO ONLY HALF THE NORMAL RATE OF TAX ON THE NEXT 750000 FOR OUTSIDE INVESTORS TOO SMALLBUSINESS FINANCING IS TO BE MADE MORE ATTRACTIVE ANYONE FACING A CAPITAL GAINS CHARGE WILL BE ABLE TO DEFER IT INDEFINITELY BY REINVESTING GAINS IN AN UNQUOTED TRADING COMPANY PRIVATE INVESTORS ALSO WILL BE ABLE TO PUT THEIR MONEY INTO TWO NEW INVESTMENT VEHICLES ENTERPRISEINVESTMENT SCHEMES AND VENTURECAPITAL TRUSTS UNDER THE ENTERPRISE INVESTMENT SCHEMES INDIVIDUALS WILL BE PERMITTED TO INVEST AS MUCH AS 100000 A YEAR EARNING AN IMMEDIATE INCOMETAX REBATE EQUIVALENT TO 20 OF THEIR INVESTMENT CAPITAL GAINS WILL BE ENTIRELY FREE OF TAX WHILE LOSSES WILL BE CHARGEABLE AGAINST INCOME TAX AND CAPITAL GAINS TAX INVESTORS WHO PREFER TO SPREAD THEIR RISKS ACROSS A NUMBER OF COMPANIES MEANWHILE WILL BE ABLE TO PUT THEIR MONEY INTO VENTURECAPITAL TRUSTS THESE IN TURN WILL CHANNEL FUNDS INTO A SELECTION OF UNQUOTED TRADING COMPANIES AND INVESTORS WILL RECEIVE DIVIDENDS AND CAPITAL GAINS ENTIRELY FREE OF TAX 9312030008 931203 LETTERS TO THE EDITOR DYING OF ANOREXIA HE DREW MOSTLY SCORN I COMMEND YOU FOR THE OCT 18 PAGEONE ARTICLE THE ANOREXIC MAN HAS GOOD REASON TO FEEL NEGLECTED ON OCT 29 1989 MY BROTHER BARRY DIED AT AGE 45 AFTER SUFFERING FROM ANOREXIA AND BULIMIA FOR 10 YEARS IN A REAL SENSE HIS DEATH FROM HEART FAILURE WAS A BLESSING HIS EATING DISORDER HAD DESTROYED HIS KIDNEYS AND LIVER HE HAD THE PHYSIQUE OF A CONCENTRATION CAMP VICTIM WHILE THE PHYSICAL DEVASTATION CAUSED BY HIS EATING DISORDER WAS PROFOUND HE ALSO SUFFERED THE SAME KIND OF HELLISH ISOLATION AND MISUNDERSTANDING YOU NOTE IN YOUR ARTICLE HE WAS TREATED AS IF HE WERE TO BLAME FOR HIS MALAISE AND WAS SOMEHOW WILLFULLY PERPETUATING IT HE WAS EITHER PATRONIZED OR SCORNED HE ENGENDERED HOSTILITY IN MY FAMILY AS WE FOOLISHLY APPLIED STANDARDS OF REASON TO HIS BEHAVIOR AND OF COURSE FAILED TO UNDERSTAND WHY HE DID NOT RESPOND TREATMENT PROVED INEFFECTIVE LOOKING BACK I CAN UNDERSTAND WHY THE FOCUS ON EATING DISORDERS RESEARCH AND THERAPY WAS ON FEMALE SUFFERERS FEMINIST PERSPECTIVES DEVELOPED DEALING WITH SOCIETAL AND MALEIMPOSED EXPECTATIONS ON WOMEN MOTIVES DEALING WITH FEMALE BODY IMAGE INADEQUACY WERE EXAMINED THE RESEARCH PAPERS OF THE DAY ALMOST EXCLUSIVELY SAMPLED THE FEMALE POPULATION HOW COULD AND HOW CAN THE MALE SUFFERER DEAL WITH AN AFFLICTION SO OVERWHELMINGLY VIEWED AS FEMALE THIS IGNORANCE OF EATING DISORDERS IN MEN IS STILL PERVASIVE SINCE BARRY'S DEATH I HAVE MET OTHER MEN WITH EATING DISORDERS AND LISTENED TO THEIR PLIGHT THE STORY ALWAYS HAS ONE COMMON THREAD THE MALE SUFFERER CONTINUES TO DEAL WITH THE DUAL TRAGEDY OF A DEVASTATING AFFLICTION AND OF LIVING IN A SOCIETY THAT IS REMARKABLY BLIND TO ITS INCREASING OCCURRENCE IN MEN 9312030007 931203 ORNDA EXPANDING FURTHER TO ACQUIRE SUMMIT HEALTH LTD BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL ORNDA HEALTHCORP CONTINUING ITS AGGRESSIVE EXPANSION EFFORTS SAID IT AGREED TO ACQUIRE SUMMIT HEALTH LTD OF BURBANK CALIF IN A TRANSACTION VALUED AT 292 MILLION THE ANNOUNCEMENT COMES TWO WEEKS AFTER ORNDA A HOSPITAL CHAIN BASED IN NASHVILLE TENN SAID IT WAS MERGING WITH AMERICAN HEALTHCARE MANAGEMENT INC A KING OF PRUSSIA PA ACUTECARE HOSPITAL COMPANY THAT OPERATES IN NINE STATES THE MOVES ARE PART OF THE CONTINUING CONSOLIDATION WITHIN THE HEALTHCARE INDUSTRY AS VARIOUS COMPANIES SEEK WAYS TO CUT COSTS AND IMPROVE OPERATING EFFICIENCIES UNDER THE AGREEMENT SUMMIT HEALTH SHAREHOLDERS WILL RECEIVE 550 A SHARE IN CASH AND APPROXIMATELY 02157 SHARE OF ORNDA COMMON STOCK FOR EACH SUMMIT SHARE ORNDA WILL ALSO ASSUME 83 MILLION IN SUMMIT DEBT THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE FIRSTQUARTER OF 1994 SUMMIT HEALTH SHARES SKIDDED 13 YESTERDAY OR 1125 TO 7875 IN TRADING ON THE NASDAQ STOCK MARKET THAT FOLLOWED A GAIN OF 1375 A SHARE ON WEDNESDAY RUMORS OF A POSSIBLE SALE OF THE COMPANY HAD CIRCULATED FOR SEVERAL WEEKS AND SOME SPECULATORS APPARENTLY EXPECTED A DEAL AT A HIGHER PRICE IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET ORNDA SHARES ROSE 1 TO 1375 RECENT GROWTH AT SUMMIT HEALTH AN OPERATOR OF HOSPITALS AND NURSING HOMES HAS STEMMED FROM ITS AGGRESSIVE PURSUIT OF OUTPATIENT CARE THAT SECTOR OF THE HEALTHCARE MARKET IS GROWING RAPIDLY AS MORE PATIENTS SHORTEN THEIR HOSPITAL STAYS AND INSURERS PUSH FOR EARLIER HOSPITAL DISCHARGES TO KEEP COSTS DOWN SUMMIT HEALTH ALSO DERIVES A SUBSTANTIAL PORTION OF ITS REVENUE FROM MANAGEDCARE CONTRACTS THE COMBINATION OF ORNDA AMERICAN HEALTHCARE AND SUMMIT HEALTH WILL CREATE A SINGLE COMPANY WITH 16 BILLION IN REVENUE IT WILL HAVE OPERATIONS IN 17 STATES INCLUDING 46 ACUTECARE HOSPITALS TWO PSYCHIATRIC CENTERS FOUR SURGERY CENTERS AND A HEALTHMAINTENANCE ORGANIZATION WITH 2200 MEMBERS CHARLES MARTIN 50YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ORNDA WILL RETAIN THOSE POSITIONS IN THE COMBINED COMPANIES DONALD AMARAL 41 CHIEF EXECUTIVE AND PRESIDENT OF SUMMIT HEALTH WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER STEVE VOLLA 47 CHIEF EXECUTIVE AND PRESIDENT OF AMERICAN HEALTHCARE WILL BECOME CHAIRMAN OF THE EXECUTIVE COMMITTEE KEITH PITTS ORNDA'S CHIEF FINANCIAL OFFICER WILL RETAIN THAT POST IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMERICAN HEALTHCARE SHARES ROSE 75 CENTS TO 8 RHONDA L RUNDLE CONTRIBUTED TO THIS ARTICLE 9312030006 931203 INTERNATIONAL JAPAN'S STAGNANT ECONOMY CAUSES REFORM EFFORTS TO TURN IN CIRCLES EXPECTED STIMULUS PACKAGE MAY FALL SHORT OF GOALS POLITICAL CHANGE NEEDED BY MICHAEL WILLIAMS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO AS JAPAN'S ECONOMY STAGNATES SO DOES THE GOVERNMENT'S EFFORT AT REFORM AND IT'S A VICIOUS CIRCLE ANALYSTS SAY BECAUSE OVER THE LONG RUN REFORM IS NEEDED TO GET THE ECONOMY GOING PRIME MINISTER MORIHIRO HOSOKAWA'S GOVERNMENT IS NOW COBBLING TOGETHER ITS SECOND EMERGENCY STIMULUS PACKAGE SINCE TAKING OFFICE FOUR MONTHS AGO AND HOPES TO UNVEIL THE MEASURES BY THE END OF NEXT WEEK THE PACKAGE MEMBERS OF THE RULING COALITION SAY IS LIKELY TO INCLUDE THE DETAILS OF A PROMISED TAX CUT NEW GOVERNMENT SPENDING AND TAX BREAKS TARGETED AT REVERSING THE FOURYEAR SLIDE IN STOCK AND LAND PRICES THE GOVERNMENT WILL ALSO STEP UP PRESSURE ON THE BANK OF JAPAN TO FURTHER EASE MONETARY POLICY LEAKS ABOUT THE PLANS HAVE CHEERED THE BATTERED STOCK MARKET AT LEAST FOR NOW BUT THE MEASURES MAY NOT HELP MR HOSOKAWA IN HIS TWO MAIN OBJECTIVES KEEPING HIS PROMISE TO PASS POLITICALREFORM LEGISLATION BY THE END OF THE YEAR AND REVVING UP AN ECONOMY THAT SEEMS INCREASINGLY IMMUNE TO QUICK FIXES THE TWO GOALS ARE INTERLINKED STEPS SUCH AS THE FORTHCOMING EMERGENCY MEASURES CAN GO ONLY SO FAR ANALYSTS SAY MORE IMPORTANT ARE POTENTIALLY LONGERLASTING CHANGES SUCH AS CURBING THE POWERS OF THE ADMINISTRATIVE BUREAUCRACY HOWEVER THE LIKELIHOOD OF SUCH FUNDAMENTAL CHANGE RESTS ON THE ABILITY OF THE HOSOKAWA GOVERNMENT TO ACHIEVE POLITICAL REFORM A TASK WHICH PITS THE GOVERNMENT AGAINST SOME OF THE POWERFUL INTEREST GROUPS THAT HAVE THE MOST TO LOSE FROM CHANGE NEW EVIDENCE OF THE SEVERITY OF THE JAPANESE RECESSION CAME IN AN UNUSUALLY BLUNT APPRAISAL BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT WHICH INDICATES THAT JAPAN ONCE A LOCOMOTIVE FOR WORLD GROWTH IS RAPIDLY BECOMING JUST ANOTHER RUSTYWHEELED RAILCAR SUSTAINABLE LONGTERM GROWTH IN JAPAN REQUIRES NOT JUST A MACROECONOMIC RESPONSE BUT ALSO THE IMPLEMENTATION OF A WIDERANGING STRUCTURAL ADJUSTMENT PROGRAM THE PARISBASED OECD SAID IN A REPORT RELEASED YESTERDAY AND NEXT WEEK THE JAPANESE GOVERNMENT IS EXPECTED TO REPORT THAT THE ECONOMY CONTRACTED AT AN ANNUAL RATE OF AT LEAST 1 IN THE QUARTER ENDED SEPT 30 THAT WOULD FOLLOW A CONTRACTION AT A 2 RATE IN THE PRIOR QUARTER IN PARLIAMENT OPPOSITION DEMANDS THAT THE GOVERNMENT FOCUS ON THE ECONOMY HAVE PUSHED BACK THE SCHEDULE FOR POLITICAL REFORM MANY SAY THE REFORM BILLS PROBABLY WON'T CLEAR THE UPPER HOUSE UNTIL JANUARY AT THE EARLIEST MR HOSOKAWA'S CABINET MEMBERS ARE BECOMING FLUSTERED AND IN A VERY SERIOUS WAY ARE LOSING CONFIDENCE IN THEMSELVES SAYS POLITICAL COMMENTATOR MINORU MORITA HE PUTS THE ODDS AT ACHIEVING POLITICAL REFORM THIS YEAR AT 5050 HOBBLED BY SUCH COMPLICATIONS MR HOSOKAWA'S GOVERNMENT CAN COME UP WITH ONLY STOPGAP ECONOMIC SOLUTIONS THE KIND OF MEASURES UNDER DISCUSSION SAYS MORGAN STANLEY JAPAN LTD ECONOMIST NOBORU KAWAI AREN'T USELESS BUT THEY AREN'T GOING TO START AN ECONOMIC RECOVERY JAPAN'S PROBLEMS NOW SEEM TOO COMPLEX FOR TRADITIONAL PICKMEUPS ONE EXAMPLE IS LOWER INTEREST RATES NOW AT POSTWAR LOWS FALLING RATES SHOULD ENCOURAGE COMPANIES TO BORROW MONEY AND INVEST BUT BANKS SADDLED WITH BAD DEBTS ARE SKITTISH ABOUT NEW LENDING LOWER RATES HAVE ALSO CUT INTO THE INTEREST INCOME OF SAVERS AND PENSIONERS DAMPING ALREADY WEAK CONSUMER DEMAND GOVERNMENT SPENDING ON PUBLICWORKS PROJECTS SUCH AS ROADS AND BRIDGES ISN'T LIKELY TO HELP THIS TIME INFRASTRUCTURE PROJECTS TYPICALLY ENCOURAGE PRIVATE COMPANIES TO BUY NEW EQUIPMENT AND BUILD FACTORIES TO MEET THE EXTRA DEMAND BUT JAPANESE MANUFACTURERS ARE SADDLED WITH A HUGE GLUT OF MANUFACTURING CAPACITY 30 MORE THAN THEY NEED BY SOME ESTIMATES AS A RESULT THEY'RE SLASHING THEIR SPENDING THE RETRENCHMENT IS ESPECIALLY BAD NEWS FOR EMPLOYMENT AND THUS CONSUMER SPENDING THE BIGGEST SINGLE COMPONENT OF THE ECONOMY MIKE NALDRETT ECONOMIST AT KLEINWORT BENSON INTERNATIONAL INC BELIEVES MANUFACTURERS WILL CONTINUE TO SHED JOBS EVEN AFTER THE ECONOMY HAS BEGUN TO RECOVER A PATTERN SIMILAR TO THAT SEEN IN THE US WHERE MANY PEOPLE STILL CAN'T FIND WORK EVEN THOUGH THE ECONOMY IS RECOVERING IN 1997 WE MAY BE STANDING HERE DEBATING WHEN JAPAN'S MANUFACTURERS ARE GOING TO ADD JOBS HE SAYS IN THE PAST JAPAN'S EXPORT MACHINE ALSO PULLED THE COUNTRY OUT OF RECESSION NOT ANY MORE THE HIGH YEN IS MAKING JAPANESE GOODS MORE EXPENSIVE AND THUS LESS COMPETITIVE OVERSEAS THE OECD SAYS JAPAN'S SLOWING EXPORT POTENTIAL WILL KNOCK A CUMULATIVE TOTAL OF 225 PERCENTAGE POINTS OFF THE COUNTRY'S GROWTH BY 1995 BECAUSE THE OLD FISCAL AND MONETARY PUMPPRIMING CAN'T DO THE JOB ALONE JAPAN'S GOVERNMENT NEEDS TO PUSH PAINFUL AND UNPOPULAR RESTRUCTURING MOVES NOW WE NEED TO MAKE TOUGH DECISIONS TO ALLOW THE WEAK PARTS OF THE ECONOMY TO FAIL INCLUDING SOME OF JAPAN'S CODDLED FARMERS WHOLESALERS AND FINANCIAL COMPANIES SAYS MORGAN STANLEY'S MR KAWAI PLUNGING THE KNIFE HOWEVER REQUIRES DIFFICULT POLITICAL CHOICES SOMETHING A PARALYZED GOVERNMENT CAN'T PURSUE POLITICAL REFORM SAYS KAZUO AICHI A LEADING MEMBER OF THE COALITION WILL ALLOW US TO DEAL WITH THE ECONOMY IN A MORE HEALTHY WAY JAPAN IS EXPECTED TO RANK LOWER IN ECONOMIC GROWTH AMONG MAJOR ECONOMIES IN 1994 NOTE FIGURES ARE EITHER GNP OR GDP GROWTH NEGATIVE FIGURES INDICATE A CONTRACTION 9312030005 931203 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL EXPRESS CORP 235 MILLION OF PASSTHROUGH CERTIFICATES PRICED IN TWO PARTS THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH A 153 MILLION ISSUE DUE SEPT 28 2012 WITH AN 115YEAR AVERAGE LIFE WAS PRICED AS 715S AT PAR TO YIELD 715 A 135BASISPOINT SPREAD ABOVE TREASURYS A 82 MILLION ISSUE DUE MARCH 28 2017 WITH AN AVERAGE LIFE OF 208 YEARS WAS PRICED AS 796S AT PAR TO YIELD 796 A 153BASISPOINT SPREAD ABOVE TREASURYS THE ISSUE WAS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP FEDERAL HOME LOAN BANK 205 MILLION OF NOTES DUE DEC 14 1998 PRICED AS 538S AT PAR TO YIELD 538 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 24 BASIS POINTS ABOVE FIVEYEAR TREASURY NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN BANK 1201 MILLION IN THREE ISSUES OF MEDIUMTERM NOTES ACCORDING TO MCM CORPORATEWATCH AN 80 MILLION ISSUE DUE DEC 9 1996 WAS PRICED AS 464S AT PAR TO YIELD 464 A 10BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE ISSUE NONCALLABLE FOR ONE YEAR WAS SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO A 301 MILLION ISSUE DUE DEC 7 2000 WAS PRICED AS 598S AT PAR TO YIELD 598 A 46BASISPOINT SPREAD ABOVE TREASURYS THE ISSUE NONCALLABLE FOR ONE YEAR WAS SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC A 10 MILLION ISSUE DUE DEC 9 2003 WAS PRICED AS 6375S AS PAR TO YIELD 6375 A 57BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE ISSUE NONCALLABLE FOR THREE YEARS WAS SOLD BY UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE DEC 13 2000 PRICED AS 5875S AT PAR TO YIELD 5875 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR THREE YEARS WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS AND WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GTE SOUTHWEST INC 500 MILLION TWOPART ISSUE OF DEBENTURES PRICED BY UNDERWRITERS LED BY PAINEWEBBER INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION IN DEBENTURES DUE DEC 1 1999 WAS PRICED AT PAR TO YIELD 582 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 250 MILLION IN DEBENTURES DUE DEC 1 2005 WAS PRICED AT PAR TO YIELD 654 THE DEBENTURES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P GTE SOUTHWEST IS A UNIT OF GTE CORP LOUISIANA LAND & EXPLORATION CO 200 MILLION OF 30YEAR 765 DEBENTURES PRICED AT PAR THROUGH LEAD MANAGER MORGAN STANLEY & CO ACCORDING TO THE COMPANY MARRIOTT INTERNATIONAL INC 150 MILLION OF NOTES DUE DEC 15 2003 PRICED AS 675S AT 99281 TO YIELD 685 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 105 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC OVERSEAS SHIPHOLDING GROUP INC 200 MILLION DEBT ISSUE IN TWO PARTS ACCORDING TO MCM CORPORATEWATCH A 100 MILLION ISSUE OF NOTES DUE DEC 1 2003 WAS PRICED AS 8S AT 99759 TO YIELD 8035 A 225BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE A 100 MILLION ISSUE OF DEBENTURES DUE DEC 1 2013 WAS PRICED AS 875S AT 99678 TO YIELD 8784 A 235 BASIS POINT SPREAD ABOVE TREASURYS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO RYLAND GROUP INC 100 MILLION OF SENIOR SUBORDINATED NOTES DUE JUNE 1 2004 PRICED AS 9625S AT PAR TO YIELD 9625 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR SEVEN YEARS RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DILLON REED & CO SINCLAIR BROADCAST GROUP INC 200 MILLION OF DEBENTURES DUE DEC 15 2003 PRICED AS 10S AT PAR TO YIELD 10 THE ISSUE IS NONCALLABLE FOR FIVE YEARS WITH THE FIRST CALL PRICE AT 105 IF SINCLAIR CONDUCTS AN INITIAL PUBLIC OFFERING THE PROCEEDS CAN BE USED TO REDEEM UP TO 25 OF THE OFFERING AT A PRICE OF 109 RATED SINGLEB3 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC PROVINCE OF ONTARIO 750 MILLION CANADIAN DOLLARS US5625 MILLION OF 30YEAR BONDS WITH A 81 COUPON PRICED AT 9898 TO YIELD 819 THROUGH NESBITT THOMSON INC THE ISSUE HAS A SPREAD OF 62 BASIS POINTS OVER THE BENCHMARK CANADIAN 30YEAR GOVERNMENT BOND PROVINCE OF QUEBEC C500 MILLION OF FIVEYEAR BONDS WITH A 6 COUPON PRICED AT 9823 TO YIELD 6397 THROUGH LEVESQUE BEAUBIEN GEOFFRION INC THE ISSUE HAS A SPREAD OF 48 BASIS POINTS OVER THE FIVEYEAR CANADIAN BENCHMARK GOVERNMENT BOND CORTEX PHARMACEUTICALS INC 138 MILLION COMMON SHARES SOLD AT 1 APIECE THROUGH VECTOR SECURITIES INTERNATIONAL INC ACCORDING TO THE COMPANY PACTEL CORP INITIAL OFFERING OF 60 MILLION COMMON SHARES PRICED AT 23 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC OF THE TOTAL 42 MILLION SHARES ARE BEING OFFERED IN THE US AND THE REMAINDER IN INTERNATIONAL MARKETS PACTEL IS A UNIT OF PACIFIC TELESIS GROUP FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1653 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS BANK OF GREECE SA GREECE 500 MILLION OF FLOATINGRATE EURONOTES DUE DEC 16 1998 AT ISSUE AND REOFFER PRICE 9824 VIA CREDIT SUISSE FIRST BOSTON LTD AND SALOMON BROTHERS INTERNATIONAL LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 075 FEES 035 BCN LEASING BRAZILIAN PARENT 70 MILLION OF 925 EUROBONDS DUE DEC 13 1996 AT ISSUE AND REOFFER PRICE 99949 VIA CHASE INVESTMENT BANK LTD BONDS YIELD MARGIN OF 475 BASIS POINTS OVER THREEYEAR US TREASURY KEEPWELL AGREEMENT WITH BANCO DE CREDITO NACIONAL SA FEES ONE PAYABLE SEMIANNUALLY COMMERZBANK OVERSEAS FINANCE NV GERMAN PARENT 150 MILLION SWISS FRANCS OF FLOATINGRATE PUBLIC BONDS DUE JAN 19 1999 PRICED AT 1004 VIA SWISS BANK CORP PAYABLE SEMIANNUALLY AT SIXMONTH SWISS FRANC LIBOR LESS 01875 EUROPEAN INVESTMENT BANK SUPRANATIONAL ONE BILLION FRENCH FRANCS OF 6125 EUROBONDS DUE OCT 8 2004 AT ISSUE AND REOFFER PRICE 997 VIA CREDIT COMMERCIAL DE FRANCE BONDS WILL TRADE INTERCHANGEABLY WITH TWO BILLION FRANCS OF OUTSTANDING IDENTICAL BONDS NEW BONDS YIELD 616 A MARGIN OF NINE BASIS POINTS OVER 82 FRENCH TREASURY OF 2004 ALL OTHER TERMS UNCHANGED FEES 0325 GRUPO SIMEC SA MEXICAN PARENT 60 MILLION OF 8875 EUROBONDS DUE DEC 15 1998 AT ISSUE PRICE 99544 VIA LAZARD FRERES & CO BONDS YIELD 899 A SPREAD OF 385 BASIS POINTS ABOVE COMPARABLE US TREASURY LAUNCHED OFF GRUPO SIDEC'S EURO MEDIUMTERMNOTE PROGRAM GUARANTOR GRUPO SIDEC FEES UNDISCLOSED PAYABLE SEMIANNUALLY INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 300 MILLION DUTCH GUILDERS OF 5625 EUROBONDS DUE DEC 21 2000 AT ISSUE PRICE 1004 VIA ABN AMRO BANK NV REOFFERED AT 996 TO YIELD 5696 A MARGIN OF 13 BASIS POINTS OVER INTERPOLATED YIELD CURVE BETWEEN DUTCH STATE LOANS OF NOVEMBER 2000 AND JANUARY 2001 FEES ONE ITOCHU INTERNATIONAL INC JAPANESE PARENT SEVEN BILLION YEN OF 284 EUROBONDS DUE APRIL 27 1998 AT ISSUE AND REOFFER PRICE 1003 VIA SAKURA FINANCE INTERNATIONAL LTD BONDS YIELD 276 KEEPWELL AGREEMENT WITH ITOCHU CORP FEES 03 JULDIS DEVELOP CO THAILAND 50 MILLION OF CONVERTIBLE EUROBONDS DUE DEC 22 2003 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD INDICATED COUPON 425 TO 475 BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 8 TO 12 TERMS TO BE FIXED AROUND DEC 8 CONVERTIBLE FROM FEB 22 1994 BONDS CALLABLE FROM FEB 12 1997 AT PAR SUBJECT TO SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE FEES 25 LESS 025 FOR LEAD MANAGER MERCK & CO US 250 MILLION OF 525 EUROBONDS DUE DEC 22 1998 AT ISSUE PRICE 101205 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9958 TO YIELD 535 A MARGIN OF 15 BASIS POINTS OVER COMPARABLE US TREASURY THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED TRIPLEA BY BOTH MOODY'S AND S&P THE LUXEMBOURGLISTED BONDS ARE IN 1000 10000 AND 100000 DENOMINATIONS INTEREST IS PAYABLE ANNUALLY FEES 1875 NANKAI ELECTRIC RAILWAY CO JAPAN 300 MILLION OF 1625 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE DEC 16 1997 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM JAN 5 1994 TO DEC 2 1997 TERMS FIXED THURSDAY FEES 225 LESS 015 FOR LEAD MANAGER SACHSENANHALT GERMAN STATE 200 MILLION MARKS OF STEPUP FIXEDRATE BONDS DUE JAN 10 2014 AT ISSUE PRICE 101175 VIA MERRILL LYNCH BANK AG REOFFERED AT 99 COUPON 6 FIRST 10 YEARS THEREAFTER 7 PUT OPTION EXERCISABLE AT PAR IN JANUARY 2004 AND ANNUALLY THEREAFTER FEES 25 9312030004 931203 WHO'S NEWS TIMES MIRROR CO'S LAVENTHOL RESIGNS TWO ARE PLACED IN RACE FOR LEADERSHIP BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES TIMES MIRROR CO PRESIDENT DAVID LAVENTHOL RESIGNED CITING ILLNESS AND THE COMPANY ELEVATED TWO OFFICIALS TO POSITIONS THAT MAKE THEM CONTENDERS FOR THE FUTURE LEADERSHIP OF THE PUBLISHING AND CABLETELEVISION CONCERN THE 60YEAROLD MR LAVENTHOL WHO HAS PARKINSON'S DISEASE SAID IT WAS HIS DECISION TO STEP DOWN HE ALSO RESIGNED AS PUBLISHER AT THE COMPANY'S FLAGSHIP LOS ANGELES TIMES WHICH HAS BEEN SQUEEZED BY THE TROUBLED SOUTHERN CALIFORNIA ECONOMY THE RESIGNATIONS ARE EFFECTIVE JAN 1 TIMES MIRROR NAMED RICHARD T SCHLOSBERG III AND CURTIS A HESSLER BOTH 49 AS EXECUTIVE VICE PRESIDENTS OPENING THE WAY FOR A RACE FOR THE LEADERSHIP AND PERHAPS THE FUTURE DIRECTION OF THE COMPANY IN AN APPARENT SHORTTERM MOVE ROBERT F ERBURU TIMES MIRROR CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ASSUME THE ADDED POST OF PRESIDENT SUCCEEDING MR LAVENTHOL MR ERBURU 63 HELD ALL THREE POSITIONS UNTIL 1986 WHEN MR LAVENTHOL WAS NAMED PRESIDENT MR SCHLOSBERG CURRENTLY CORPORATE SENIOR VICE PRESIDENT IN CHARGE OF TIMES MIRROR'S FIVE MAJOR EASTERN NEWSPAPERS INCLUDING NEWSDAY AND THE BALTIMORE SUN AND THE COMPANY'S MAGAZINES WILL SUCCEED MR LAVENTHOL AS PUBLISHER AND CHIEF EXECUTIVE OFFICER OF THE LOS ANGELES TIMES MR HESSLER NOW CORPORATE SENIOR VICE PRESIDENT RESPONSIBLE FOR CORPORATE STAFF WILL ASSUME OVERSIGHT OF THE COMPANY'S CABLE TV AND PROFESSIONAL PUBLISHING GROUPS WHICH INCLUDE PROFESSIONAL AND SCHOOL TEXTBOOKS HE WILL RETAIN RESPONSIBILITY FOR CORPORATE STAFF MR LAVENTHOL A QUIET AND CEREBRAL MAN HAS OVERSEEN MAJOR CHANGES AT THE LOS ANGELES TIMES SINCE HE BECAME PUBLISHER IN 1989 BUT HE ALSO HAS BEEN AT THE HELM WHEN THE REGION'S ECONOMIC DOWNTURN HAS LED TO STAFF REDUCTIONS DWINDLING ADVERTISING LINAGE STAGNANT CIRCULATION AND THE CLOSING OF BUREAUS AND SECTIONS IN A LETTER TO THE LOS ANGELES TIMES'S STAFF MR LAVENTHOL SAID HE WILL TAKE ON THE NEW POSITION OF EDITORATLARGE FOR TIMES MIRROR A ROLE THAT WILL BE A LITTLE LESS DEMANDING WHICH WILL BE HELPFUL PERSONALLY THE COMPANY SAID MR LAVENTHOL IS BEING SUCCESSFULLY TREATED FOR PARKINSON'S DISEASE AND WILL REMAIN ACTIVE AT THE COMPANY WORKING WITH EDITORS AND EXECUTIVES ON EDITORIAL CONTENT AND NEWS MATTERS AND ON POLICY ISSUES AT THE CORPORATE LEVEL I BELIEVE WE ARE EMERGING FROM THESE CHALLENGING TIMES STRONGER THAN EVER WITH OUR FINANCIAL BASE MUCH MORE STABLE OUR JOURNALISTIC ACCOMPLISHMENTS BETTER THAN EVER AND OUR COMPETITIVE SITUATION STRENGTHENED MR LAVENTHOL WROTE IN HIS LETTER TO THE LOS ANGELES TIMES STAFF YET MR SCHLOSBERG A MARATHON RUNNER AND FORMER FIGHTER PILOT FACES FEW EASY TASKS AS HE ASSUMES MANAGEMENT OF ONE OF THE NATION'S LARGEST DAILY NEWSPAPERS AS WELL AS THE REST OF TIMES MIRROR'S STAGNANT PORTFOLIO OF MAJOR METROPOLITAN DAILIES IN RECENT REPORTS TIMES MIRROR HAS SHOWN SLIM GROWTH IN NEWSPAPER REVENUE AND ADVERTISING LINAGE REFLECTING ECONOMIC CONDITIONS IN ITS EASTERN AND WESTERN MARKETS PROFITS HOWEVER HAVE IMPROVED SOMEWHAT AS COST REDUCTIONS INCLUDING THE STAFF CUTS HAVE TAKEN EFFECT IN WHAT APPEARS TO BE A POTENTIAL HORSERACE TO SUCCEED MR ERBURU IN A FEW YEARS MR SCHLOSBERG WOULD SEEM TO HAVE THE LEADING EDGE BOTH IN PRECEDENT AND IN THE SIZE OF OPERATIONS HE WILL OVERSEE NEWSPAPERS ACCOUNTED FOR SLIGHTLY OVER HALF OF TIMES MIRROR'S 269 BILLION OF REVENUE IN THE RECENTLY COMPLETED NINE MONTHS AND LEADERSHIP AT THE LOS ANGELES TIMES THE FLAGSHIP AND SOUL OF THE COMPANY HAS BEEN A TRADITIONAL STEPPINGSTONE TO THE TOP 9312030003 931203 CREDIT RATINGS CONTINENTAL CORP NEW YORK STANDARD & POOR'S CORP AFFIRMED ITS SINGLEAMINUS SENIORDEBT RATING FOR THIS PROPERTYCASUALTY INSURER AND REVISED ITS RATINGS OUTLOOK TO STABLE FROM NEGATIVE ABOUT 400 MILLION OF DEBT IS AFFECTED S&P NOTED IMPROVEMENTS IN PROFITABILITY OF OPERATING UNITS DESPITE CYCLICAL PRESSURES IN THE INDUSTRY CONTINENTAL IS FOCUSING ON BUSINESS LINES WHERE IT HAS DEMONSTRATED AN ABILITY TO OUTPERFORM THE INDUSTRY THE REPORT SAID 9312030002 931203 DEATH IN COLOMBIA END OF PABLO ESCOBAR MAY SLOW THE VIOLENCE BUT NOT COCAINE TRADE FOCUS NOW MOVES TO CARTEL IN CALI AND TO THE VALLEY CONTROLLING HEROIN FLOW THE REVENGE OF THE PEPES BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL MEDELLIN COLOMBIA AT THE OLD CEMETERY OF SAN PEDRO HUNDREDS OF FAMILIES COME EVERY SUNDAY TO MOURN VISIT AND PLAY SONGS FOR THE DEAD YOUNG MEN FROM THE NOHOPE BARRIOS OF THIS CITY THE DEAD ARE LAID OUT IN FLOWERBEDECKED CONCRETE CRYPTS STACKED LIKE MINIATURE APARTMENTS A DOZEN HIGH IN RECENT YEARS TWOTHIRDS OF THOSE BURIED HERE HAVE BEEN YOUNG MEN 15 TO 25 YEARS OLD WHO DIED VIOLENTLY THIS IS THE LEGACY OF PABLO ESCOBAR THE COCAINE OVERLORD WHOSE LIFE CAME TO A BLOODY END YESTERDAY IN A SHOOTOUT WITH POLICE AT A HOUSE IN MEDELLIN IF ONE MAN IS TO BLAME FOR THE WAVE OF VIOLENCE THAT HAS BLED COLOMBIA ESPECIALLY MEDELLIN FOR A DECADE THAT MAN MANY HERE SAY WAS MR ESCOBAR HE WAS THE ONE RESPONSIBLE FOR THE ASSASSINATION OF DOZENS OF MAGISTRATES HIGH GOVERNMENT OFFICIALS AND POLICEMEN HIS MINIONS SET OFF DOZENS OF BOMBS INCLUDING ONE THAT DESTROYED AN AVIANCA AIRLINER KILLING ALL 107 ON BOARD IN 1989 MORE THAN ANY OTHER COCAINE CHIEFTAIN MR ESCOBAR SET THE TONE FOR THE DRUGRELATED VIOLENCE THAT ONE ACADEMIC STUDY CLAIMS WAS RESPONSIBLE FOR 40 OF COLOMBIA'S MORE THAN 28000 KILLINGS LAST YEAR MR ESCOBAR ONCE WORTH 25 BILLION ACCORDING TO FORBES MAGAZINE HAD A 6 MILLION REWARD ON HIS HEAD WHEN HE WAS GUNNED DOWN ON THE ROOF OF A TWOSTORY HOUSE IN MEDELLIN DRESSED IN BLUEJEANS AND WEARING A BEARD MR ESCOBAR 44 HAD BEEN A FUGITIVE FOR 16 MONTHS COLOMBIANS HOPE THE KILLING WILL ABATE NOW THAT MR ESCOBAR IS GONE BUT NO ONE EXPECTS THE DRUG LORD'S DEATH TO HAVE MUCH IMPACT ON THE WORLD COCAINE TRADE WITH THE END OF THE ESCOBAR PROBLEM THERE IS AN END TO TERRORISM AN END TO THE KILLING OF POLICEMEN BUT AS TO DRUG TRAFFICKING ESCOBAR IS A SMALL PART OF THAT BIG WORLD SAYS THE POLICE COLONEL IN CHARGE OF THE ELITE TROOPS WHO SEARCHED FOR MR ESCOBAR THE MURKY PANORAMA OF THE DRUG BUSINESS NOW IS EXPECTED TO BECOME EVEN MURKIER MANY ANALYSTS BELIEVE COCAINE EXPORTS MAY EVEN INCREASE GIVEN THAT THE REMAINING MEMBERS OF THE MEDELLIN CARTEL WILL BE ABLE TO TURN THEIR ENERGIES TO A DRUG BUSINESS THAT HAS GROWN MORE SOPHISTICATED AND IN AN OMINOUS RECENT DEVELOPMENT COLOMBIAN DRUG TRAFFICKERS HAVE BRANCHED OUT INTO HEROIN PRODUCED LOCALLY FROM POPPIES WHOSE CULTIVATION HAS INCREASED DRAMATICALLY WHILE MR ESCOBAR SPENT HIS LAST YEAR DODGING GOVERNMENT TROOPS AND VENGEFUL FORMER COLLEAGUES A RIVAL COCAINE ORGANIZATION BASED IN THE CITY OF CALI HAS QUIETLY GRABBED MOST OF THE WORLD COCAINE MARKET FROM HIS WEAKENED MEDELLIN ORGANIZATION IN WASHINGTON ROBERT BONNER FORMER HEAD OF THE DRUG ENFORCEMENT ADMINISTRATION SAYS THAT THE CALI CARTEL NOW ACCOUNTS FOR AS MUCH AS 80 OF COLOMBIA'S COCAINE EXPORTS ANOTHER US DRUG OFFICIAL CALLS THE CALI CARTEL PERHAPS THE MOST SOPHISTICATED CRIMINAL ORGANIZATION IN THE WORLD WITH MR ESCOBAR'S DEATH SOME COLOMBIAN OFFICIALS SAY THAT THE GOVERNMENT COULD TURN ITS ATTENTION TO THE LEADERSHIP OF THE CALI CARTEL THE DEA'S ACTING ADMINISTRATOR STEPHEN H GREENE COMMENDED THE COLOMBIAN POLICE FOR ITS EFFORTS TO CAPTURE ESCOBAR ESCOBAR'S DEMISE WILL NOW ENABLE THE COLOMBIAN GOVERNMENT TO FOCUS ITS EFFORTS ON THE CALI CARTEL THE WORLD'S LARGEST DRUGTRAFFICKING OPERATION MR GREENE SAID IN FACT CALI'S DRUG LORDS HAVE NO DESIRE TO CONFRONT THE GOVERNMENT AS THEIR COLLEAGUES IN MEDELLIN HAVE DONE EARLIER THIS YEAR LAWYERS FOR CALI DRUG TRAFFICKERS CONTACTED GUSTAVO DE GREIFF COLOMBIA'S ATTORNEY GENERAL WITH A STARTLING OFFER THEY WERE WILLING TO DISMANTLE THEIR OPERATIONS AND SQUARE THEIR ACCOUNTS WITH THE LAW WE ARE REALISTS MR DE GREIFF SAYS THE EMISSARIES FROM CALI SAID WE REALIZE THAT AFTER ESCOBAR ALL OF THE GOVERNMENT'S FORCES WILL BE DIRECTED AGAINST US US DRUG OFFICIALS ARE SKEPTICAL TO PUT IT MILDLY THAT THE CALI NARCOTRAFICANTES WILL DISMANTLE THEIR DRUG BUSINESS THEY TALK FROM BOTH SIDES OF THEIR MOUTH SAYS TOM CASH THE DEA'S MIAMI CHIEF THE CALI PEOPLE SPEND EVERY WAKING HOUR OF EVERY WAKING DAY WORKING TO BRING KILO LOADS TO THE US AND EUROPE THEIR LARGEST MARKET ONE YOUNG DRUG DEALER WHO WORKS FOR ONE OF THE TOP CALI BOSSES AGREES WITH THAT ASSESSMENT SAYING MY FRIENDS WANT TO MOVE THEIR BUSINESS TO OTHER COUNTRIES BUT THEY WILL STILL BE IN THE SAME BUSINESS NEVERTHELESS MANY BELIEVE THAT MR ESCOBAR'S DEATH WILL BE A BIG INCENTIVE FOR CALI'S NARCOS TO WORK OUT SOME SORT OF LEGAL AMNESTY WITH THE COLOMBIAN GOVERNMENT MOST ANALYSTS AND POLITICAL INSIDERS HERE QUESTION WHETHER THE COLOMBIAN GOVERNMENT HAS THE WILL TO CHALLENGE THE CALI CARTEL WHOSE STYLE AND MODUS OPERANDI ARE VERY DIFFERENT FROM THAT OF ITS MEDELLIN COUNTERPART MR ESCOBAR AND OTHER MEDELLIN DRUG LORDS WERE FOR THE MOST PART A FLAMBOYANT AND VIOLENT LOT WHO OPENLY ENTERTAINED POLITICAL AMBITIONS AND WHEN THESE WERE FRUSTRATED WAGED A WAR OF CAR BOMBS AND ASSASSINATIONS AGAINST COLOMBIA'S GOVERNMENT AND SOCIETY THE MEDELLIN CARTEL'S NARCOTERRORISM RATHER THAN DRUG TRAFFICKING HAS UNDERSTANDABLY BEEN THE GOVERNMENT'S MAIN CONCERN IN SHARP CONTRAST CALI'S DRUG LORDS ARE UNDERSTATED AND SOPHISTICATED LARGELY PREFERRING BRIBERY TO MURDER IT'S A COMPLICATED PROBLEM SAYS ATTORNEY GENERAL DE GREIFF THEY HAVEN'T BEEN VIOLENT THEY DON'T HAVE THE ARMIES OF ASSASSINS ESCOBAR HAD THAT IS NOT TO SAY THAT CALI'S GENTLEMEN CAPOS DON'T KILL THEY JUST KILL LESS SPECTACULARLY ONE EXCEPTION TO THE RULE THE 1992 NEW YORK CITY MURDER OF MANUEL DE DIOS UNANUE A CRUSADING ANTIDRUG JOURNALIST AT ANY RATE THE FUTURE SEEMS ENSURED FOR CALI'S MOST POWERFUL DRUG LORD GILBERTO RODRIGUEZ OREJUELA NICKNAMED THE CHESSMASTER WHO HAS SEVERAL INDICTMENTS IN THE US FOR DRUG TRAFFICKING ONCE A PHARMACIST MR RODRIGUEZ OREJUELA ROSE FROM CAR THIEF AND KIDNAPPER TO HEAD A VAST EMPIRE THAT INCLUDES A CHAIN OF DRUGSTORES THE CITY'S VASTLY SUCCESSFUL SOCCER TEAM AND ENORMOUS REALESTATE HOLDINGS SOURCES FAMILIAR WITH HIS ORGANIZATION SAY THERE IS A RELUCTANCE TO DO BUSINESS WITH SOMEBODY WHOSE HANDS ARE FULL OF BLOOD BUT THE HANDS OF THE RODRIGUEZ OREJUELAS ARE CLEAN SAYS A RESPECTED COLOMBIAN STATESMAN WHO DID NOT WANT TO BE NAMED PEOPLE WON'T HAVE ANY PROBLEM DOING BUSINESS WITH THEM NINE YEARS OF WAR BETWEEN THE MEDELLIN CARTEL AND THE GOVERNMENT HAVE BLOODIED BOTH THE CARTEL NOTCHED ONE IMPORTANT VICTORY WHEN COLOMBIA'S EXTRADITION TREATY WITH THE US WAS DISCARDED AS PART OF CONSTITUTIONAL REFORM AND PRESIDENT CESAR GAVIRIA'S GOVERNMENT WAS MADE A LAUGHINGSTOCK LAST YEAR WHEN MR ESCOBAR FLED WHAT TURNED OUT TO BE A LUXURY JAIL HE CONTROLLED STILL THE PRINCIPAL LEADERS OF THE MEDELLIN CARTEL ARE EITHER DEAD OR IN PRISON AND THE CARTEL'S SHARE OF THE COCAINE MARKET HAS FALLEN SHARPLY IT'S A DEMONSTRATION THAT TERRORISM IS NOT GOOD FOR BUSINESS SAYS THE STATESMAN DRINKING COFFEE IN HIS BOOKLINED BOGOTA STUDY BUT IN CALI COLOMBIA'S THIRDLARGEST CITY BUSINESS IS BOOMING A PART OF THE SKYLINE HAS BEEN TURNED BY DRUGFUNDED CONSTRUCTION INTO A MINIREPLICA OF MIAMI COMPLETE WITH PLAYFUL MULTICOLORED BUILDINGS AND REFLECTINGGLASS SHOPPING CENTERS WITH INLAID STRIPES OF NEON LIGHTS IN CALI THE NARCOS ARE EVERYWHERE ON A RECENT NIGHT SOME PATRONIZE A DISCOTHEQUE WITH MOVIE SCREENS FEATURING CARCRASH MOVIES IN THE LOBBY OF THE FIVESTAR INTERCONTINENTAL HOTEL A DRUG MERCHANT GIVES A WARM EMBRACE TO A FRIEND WHO IS VACATIONING FROM MIAMI WHERE HE IS IN CHARGE OF ONE OF THE CARTEL'S US OPERATIONS DEALERSHIPS FOR EXPENSIVE FOREIGN CARS WHICH ARE A COMMON CONDUIT FOR LAUNDERING DRUG MONEY ARE ABUNDANT IN CALI IN RESTAURANTS BODYGUARDS ON THE JOB SIP LEMONADE DISCREETLY WHILE THEIR BOSSES AT THE NEXT TABLE DOWN SCOTCHES HERE THERE ARE A THOUSAND MUCHACHOS WITH A MILLION DOLLARS BOASTS ONE YOUNG NARCO DRIVING PAST A MERCEDES DEALERSHIP THEY OWN THE STREETS SAYS ONE LEADING CALI BUSINESSMAN SPEAKING OF THE PUBLICLY FLAUNTED DRUG AFFLUENCE A MEDELLIN PUBLICRELATIONS EXECUTIVE SAYS HE HAS SEEN IT BEFORE CALI IS WHERE MEDELLIN WAS 10 YEARS AGO BECAUSE THE CALI DRUG LORDS HAVE NEVER CHALLENGED THE GOVERNMENT MOST OF THE CITY'S COCAINE MERCHANTS LIVE SEMIOPENLY SOURCES SAY MR RODRIGUEZ OREJUELA LIVES BEHIND THE WHITE WALLS OF HIS COMPOUND IN CIUDAD JARDIN A NEIGHBORHOOD OF MANSIONS ON THE OUTSKIRTS OF THE CITY WHERE HE RECEIVES AMONG OTHERS ARGENTINE SOCCER IMPRESARIOS UNLIKE MR ESCOBAR WHO HAD AT LEAST 22 SEPARATE INDICTMENTS FOR EVERYTHING FROM ASSASSINATING A NEWSPAPER EDITOR TO BLOWING UP AN AIRPLANE MOST OF CALI'S DRUG LORDS HAVE NO SERIOUS CHARGES PENDING AGAINST THEM IN COLOMBIA US OFFICIALS SAY AND CALI RESIDENTS AGREE THAT THE POWER OF THE DRUG LORDS IN THE CITY IS UNDISPUTED A YOUNG MAN WHO WORKS FOR ONE DRUGTRAFFICKING GROUP SAYS A FLEET OF TAXIS PROVIDES INTELLIGENCE ON THE MOVEMENT OF STRANGERS AND LOCAL POLICE PROVIDE SECURITY FOR NARCO GATHERINGS THEY OWN CALI SAYS MR BONNER THE FORMER DEA CHIEF THE QUESTION IS WILL THEY OWN THE WHOLE COUNTRY WHILE MR ESCOBAR WAS ALIVE AND ON THE RUN THE CALI CARTEL KEPT ITS MIND ON BUSINESS CONCENTRATING ON EXTENDING ITS REACH TO RICH NEW MARKETS IN EUROPE THERE A KILO OF COCAINE GOES FOR AS MUCH AS 45000 TWICE THE WHOLESALE PRICE IN MIAMI MR BONNER ESTIMATES THAT AS MUCH AS 300 TONS A YEAR BETWEEN A THIRD AND A FOURTH OF COLOMBIA'S PRODUCTION IS NOW SHIPPED TO EUROPE SOME COLOMBIAN EUROPEAN AND US ANALYSTS AND LAWENFORCEMENT OFFICIALS SAY THAT THE CALI CARTEL HAS MADE INFORMAL ALLIANCES WITH ORGANIZED CRIME GROUPS IN EUROPE AND ASIA WITH THE EUROPEAN CRIME GROUPS THE CARTEL HAS DEVELOPED SMUGGLING ROUTES TO WESTERN EUROPE THROUGH THE CHAOTIC STATES OF THE FORMER SOVIET BLOC THERE IS ABSOLUTELY NO DOUBT THAT THERE IS AN ALLIANCE BETWEEN THE SICILIAN MAFIA AND THE CALI CARTEL SAYS BRUCE BAGLEY AN EXPERT ON COLOMBIA AND DRUGS AT THE UNIVERSITY OF MIAMI ONE NEXUS IN THAT ALLIANCE IS TO BE FOUND IN NEXTDOOR VENEZUELA IT HAS BECOME AN IMPORTANT TRANSIT POINT FOR DRUGS GOING TO EUROPE AND THE US AS WELL AS AN IMPORTANT MONEYLAUNDERING CENTER LAST YEAR VENEZUELAN POLICE EXTRADITED TO ITALY THREE VENEZUELANITALIANS WHO WERE SUSPECTED OF RUNNING A HEROIN AND MONEYLAUNDERING EMPIRE ALSO LAST YEAR THE DEA SEIZED 14285 KILOS OF COCAINE SHIPPED INSIDE CONCRETE POSTS EXPORTED FROM VENEZUELA TO FLORIDA DEA OFFICIALS INDICTED MR RODRIGUEZ OREJUELA'S BROTHER MIGUEL FOR THE SHIPMENT VENEZUELA COULD SUPPLANT COLOMBIA NOT ONLY IN MONEY LAUNDERING BUT AS A DRUG PRODUCER AND EXPORTER SAYS ONE TOP COLOMBIAN POLICE OFFICIAL PERHAPS THE MOST WORRISOME DEVELOPMENT BOTH FOR COLOMBIAN AND US LAWENFORCEMENT AUTHORITIES IS COLOMBIA'S ENTRY INTO POPPY CULTIVATION AND OPIUM AND HEROIN PRODUCTION LED BY DRUG TRAFFICKERS WITH CONNECTIONS TO THE CALI CARTEL IN 1992 THE COLOMBIAN GOVERNMENT GOT A RUDE SHOCK WHEN A POLICE REPORT ESTIMATED THAT THERE WERE SOME 50000 ACRES OF POPPIES IN CULTIVATION IN THE COUNTRY OR ALMOST 9 OF THE ESTIMATED WORLD CROP OF POPPIES THE DISCOVERY CREATED PANIC IN HIGH GOVERNMENT CIRCLES SAYS JUAN TOKATLIAN A DRUGPOLICY EXPERT AT THE UNIVERSITY OF THE ANDES IN BOGOTA THE REASONS A KILO OF HEROIN SELLS FOR 10 TIMES AS MUCH AS A KILO OF COCAINE THE POPPIES WERE BEING GROWN IN AREAS CONTESTED BY THE COUNTRY'S PERNICIOUS GUERRILLA GROUPS WHICH HAVE THE SAME LEVEL OF INTEREST IN DRUG TRAFFICKING THAT THEY HAVE IN MARXIST IDEOLOGY AND GROWING POPPIES IS A TEMPTING PROPOSITION FOR AREA FARMERS WHO HAVE BEEN HARD HIT BY THE FALL IN WORLD PRICES OF COFFEE AND OTHER CROPS COLOMBIAN AUTHORITIES REACTED SWIFTLY IN 1992 POLICE DUG UP OR SPRAYED WITH HERBICIDE ABOUT 32000 ACRES OF POPPIES AND SEIZED 48 KILOS OF HEROIN UP FROM 3700 ACRES ERADICATED AND ZERO HEROIN SEIZED THE PREVIOUS YEAR DESPITE THE GOVERNMENT'S SWIFT ACTION A LOT OF THE POPPY CULTIVATION HAS JUST BEEN DRIVEN BACK INTO REMOTE AREAS WHERE IT WILL BE MUCH MORE DIFFICULT TO ERADICATE MUCH OF THE HEROIN TRAFFICKING IS THE WORK OF A VIOLENT CRIMINAL GROUP DUBBED THE NORTHERN CAUCA VALLEY CARTEL WHICH OPERATES IN THE RICH SUGARCANE LANDS NORTH OF CALI THE GROUP HAS CLOSE TIES TO AND SOMETIMES WORKS WITH THE CALI CARTEL US AND COLOMBIAN OFFICIALS SAY ITS LEADER IVAN URDINOLA WAS CAPTURED BY POLICE IN APRIL 1992 AND PLEADED GUILTY TO DRUG CHARGES UNDER COLOMBIA'S LIBERAL PROGRAM OF SENTENCE REDUCTIONS FOR NARCOTICS OFFENDERS MR URDINOLA IS EXPECTED TO SERVE 5 1/2 YEARS IN PRISON HIS BROTHER JULIO FAVIO IS REGULARLY SEEN IN CALI DISCOTHEQUES AFTER MR URDINOLA'S ARREST THE NUMBER OF MUTILATED CORPSES FLOATING DOWN THE MUDDY WATERS OF THE CAUCA RIVER THE URDINOLA BROTHERS' TRADEMARK HAS FALLEN SHARPLY WE USED TO GET A BODY A DAY LAST YEAR MOSTLY IN THE AFTERNOON SAYS MARIA VELEZ A NURSE IN A TOWN IN THE UPPER CAUCA VALLEY SOME HAD THEIR HANDS BOUND SOME WERE NOT WE WOULD LET THE BODIES DRIFT DOWNSTREAM UNLESS THE RELATIVES TOLD THE POLICE TO WATCH OUT FOR A CORPSE WEARING SUCH AND SUCH THIS YEAR THERE HAVE BEEN NO BODIES SHE SAYS IF CALI'S GROWING DRUG INFLUENCE AND THE NEW HEROIN TRADE WEREN'T ENOUGH COLOMBIAN OFFICIALS ALSO WORRY THAT A GROUP KNOWN AS PEPES THE SPANISH ACRONYM FOR PEOPLE PERSECUTED BY PABLO ESCOBAR COULD BECOME A NEW EVEN MORE VIOLENT VERSION OF THE MEDELLIN CARTEL THE SHADOW ORGANIZATION IS MADE UP OF MR ESCOBAR'S FORMER MEDELLIN CARTEL COLLEAGUES WHO HOUNDED THE FUGITIVE DRUG LORD AND MURDERED SCORES OF HIS ALLIES PEPES MADE ITS APPEARANCE AFTER MR ESCOBAR'S UNDERLINGS TORTURED AND MURDERED THREE LIEUTENANTS FROM THE POWERFUL MONCADA AND GALEANO DRUG CLANS IN A DISPUTE OVER MONEY AND AUTHORITY ACCORDING TO MR DE GREIFF THE ATTORNEY GENERAL MR ESCOBAR DEMANDED AN INCREASE IN HIS CUT FROM HIS LIEUTENANTS' OPERATIONS TO 5 MILLION A MONTH FROM 2 MILLION PEPES IS BELIEVED TO BE MADE UP OF RELATIVES OF THE MURDERED MEN ALLIED WITH MR RODRIGUEZ OREJUELA OF THE CALI CARTEL AND ACCORDING TO MR ESCOBAR COLOMBIAN POLICE OFFICERS THE GROUP IS BELIEVED TO BE LED BY FIDEL CASTANO AN ALLEGED RIGHTWING DRUG MERCHANT AND LEADER OF A VIOLENT PARAMILITARY GROUP MR CASTANO HAS BEEN SENTENCED TO 20 YEARS IN PRISON IN ABSENTIA FOR HIS ROLE IN NUMEROUS MASSACRES MR DE GREIFF AND SOME HIGHRANKING MILITARY AUTHORITIES BELIEVE PEPES WILL DISSOLVE NOW THAT MR ESCOBAR IS DEAD OTHERS ARE NOT SO SURE ONE HIGHRANKING COLOMBIAN POLICEMAN NOTES THAT MR CASTANO KNOWN AS RAMBO IS A VIOLENT MAN WHO HIRED BRITISH AND ISRAELI MERCENARIES TO TRAIN HIS PARAMILITARY GROUP THOSE PARAMILITARY SOLDIERS ARE HE SAYS ALL DRESSED UP AND LOOKING FOR SOMEWHERE TO GO 9312030001 931203 ECONOMY CANADA CLEARS NAFTA CLAIMS IMPROVEMENTS' LIBERAL PARTY SAYS IT WON CHANGES TO TRADE PACT ON UNFAIR PRICING CODES BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA CANADA'S NEW LIBERAL PARTY GOVERNMENT APPROVED THE NORTH AMERICAN FREE TRADE AGREEMENT AFTER SECURING WHAT IT CLAIMED WERE SIGNIFICANT IMPROVEMENTS TO THE PACT THE GOVERNMENT'S DECISION MEANS THAT CANADA WILL JOIN THE US AND MEXICO IN IMPLEMENTING THE TRADE ACCORD BEGINNING JAN 1 THE NEW LIBERAL GOVERNMENT HAD THREATENED TO DROP OUT OF THE AGREEMENT IF ITS DEMANDS FOR CHANGES WEREN'T MET THE LIBERALS WHO VOTED AGAINST NAFTA IN PARLIAMENT THIS PAST SPRING TOOK OFFICE NOV 4 SUCCEEDING THE PROGRESSIVE CONSERVATIVE GOVERNMENT THAT NEGOTIATED THE AGREEMENT US TRADE REPRESENTATIVE MICKEY KANTOR WELCOMED THE LIBERAL GOVERNMENT'S DECISION TO PROCEED WITH NAFTA HE SAID UNDERTAKINGS MADE BY THE US AND MEXICO TO DEAL WITH CANADA'S CONCERNS DON'T CHANGE THE BASIC NAFTA PACT IN ANY WAY THE LIBERALS' MAIN DEMAND WAS THAT UNIFORM TRADE RULES BE DEVELOPED TO AVOID DISPUTES OVER UNFAIR TRADING PRACTICES TO DEAL WITH THIS DEMAND THE THREE COUNTRIES AGREED THEY WILL TRY TO NEGOTIATE OVER THE NEXT TWO YEARS CODES GOVERNING TRADE SUBSIDIES AND DUMPING OR UNFAIR PRICING THE AGREEMENT WAS ANNOUNCED IN A JOINT STATEMENT YESTERDAY PRIME MINISTER JEAN CHRETIEN TOLD REPORTERS THAT BOTH PRESIDENT CLINTON AND MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI ACKNOWLEDGED THAT THE TRADE CODES WERE NEEDED FOR NAFTA TO OPERATE SMOOTHLY THE CANADIAN PRIME MINISTER SPOKE TO THE TWO LEADERS WEDNESDAY NIGHT NAFTA WHICH BUILDS ON THE FIVEYEAROLD USCANADA FREE TRADE AGREEMENT PROVIDES FOR A GRADUAL ELIMINATION OF TARIFFS AND OTHER TRADE BARRIERS BETWEEN THE US CANADA AND MEXICO THE CLINTON ADMINISTRATION REFUSED A DEMAND BY THE NEW CANADIAN GOVERNMENT THAT NAFTA BE AMENDED TO PROVIDE CANADA WITH THE SAME PROTECTION FOR ITS ENERGY RESOURCES AS MEXICO WILL HAVE UNDER THE AGREEMENT MEXICO UNLIKE CANADA ISN'T REQUIRED BY THE AGREEMENT TO SHARE ITS ENERGY RESOURCES WITH ITS TRADE PARTNERS DURING A SUPPLY CRISIS THE CANADIAN GOVERNMENT ISSUED A STATEMENT YESTERDAY SAYING THAT IT INTERPRETS THE NAFTA AS NOT REQUIRING ANY CANADIAN TO EXPORT A GIVEN LEVEL OR PROPORTION OF ANY ENERGY RESOURCE TO ANOTHER NAFTA COUNTRY SOME CANADIAN TRADE ANALYSTS SAID THE CANADIAN STATEMENT CARRIED LITTLE IF ANY LEGAL WEIGHT IF AN ENERGY SUPPLY SHORTAGE OCCURRED THEY SAID CANADA WOULD HAVE TO MEET ITS NAFTA COMMITMENTS TO SHARE ITS ENERGY WITH THE US MR KANTOR SAID THAT THE ENERGY PROVISIONS OF NAFTA ARE CLEAR AND THE US FULLY EXPECTS THAT CANADA AS WELL AS MEXICO AND THE US WILL ACT CONSISTENTLY WITH THEIR NAFTA OBLIGATIONS MR CHRETIEN TOLD REPORTERS THAT CANADA IS CURRENTLY TRYING TO INCREASE ITS OIL AND NATURAL GAS EXPORTS TO THE US NOT REDUCE THEM BUT HE SAID HE TOLD PRESIDENT CLINTON THAT CANADIANS SHOULDN'T HAVE TO ACCEPT LESS PROTECTION FOR THEIR ENERGY UNDER NAFTA THAN MEXICO WILL HAVE IN RESPONSE TO ANOTHER CANADIAN CONCERN THE THREE NAFTA COUNTRIES ISSUED A JOINT STATEMENT SAYING THAT NAFTA DOESN'T REQUIRE THEM TO EXPORT THEIR WATER RESOURCES SOME ANTINAFTA GROUPS IN CANADA HAVE CLAIMED THAT CANADA COULD BE COMPELLED UNDER NAFTA TO EXPORT WATER TO THE US THOMAS D'AQUINO PRESIDENT OF THE BUSINESS COUNCIL ON NATIONAL ISSUES WELCOMED THE CANADIAN GOVERNMENT'S DECISION TO IMPLEMENT THE NAFTA ACCORD IT SIGNALS THE NEW GOVERNMENT'S DETERMINATION TO MAKE CANADA AN AGGRESSIVE PLAYER IN THE NORTH AMERICAN AND LATIN AMERICAN MARKETS HE SAID THE COUNCIL REPRESENTS THE CHIEF EXECUTIVES OF MAJOR CANADIAN COMPANIES 9312030149 931110 REVIEW & OUTLOOK EDITORIAL MORE BUREAUCRATIC KUDZU TENACIOUS COMMUNITY GARDENERS ON MANHATTAN'S UPPER WEST SIDE ARE DISCOVERING THAT THERE IS NO WEED NO GRASS NO TREE HARDER TO UPROOT THAN A BUNCH OF MOSSBACKED BUREAUCRATS EVEN A BUNCH OF BUREAUCRATS WHO WILL SOON BE CLEARING THEIR DESKS THERE IS PLENTY TO DO IN NEW YORK BEFORE THE JANUARY WITCHING HOUR AFTER ALL QUALITY OF LIFE WAS A MAJOR ISSUE IN THE MAYORAL CAMPAIGN JUST LOST BY DEMOCRAT DAVID DINKINS THERE IS GARBAGE IN THE STREETS AND THE PARKS THERE IS PLENTY OF DISINTEGRATING HOUSING THERE IS ASBESTOS SCARING SCHOOLCHILDREN ALONG WITH GUNWIELDING HOODLUMS SO ON THE DAY AFTER THE ELECTIONS WHAT DO YOU SUPPOSE OCCUPIED TWO MAJOR BUREAUCRACIES THE NEW YORK CITY HOUSING AGENCY AND THE BOARD OF EDUCATION BOTH OF WHICH HAVE DONE LITTLE THESE PAST FOUR YEARS TO INSTILL CONFIDENCE IN THE BELEAGUERED ELECTORATE A LITTLE PARK ON A DOWNSCALE STREET IN A MIXED INCOME NEIGHBORHOOD ABANDONED BY THE CITY LONG AGO THE LOT WAS RECLAIMED FOR CIVILIZED USE BY COMMUNITY ACTIVISTS WHO EVICTED THE DRUG DEALERS AND REMOVED THE JUNK PILES THIS IS JUST THE KIND OF LEAFY HAVEN AND PRIVATE CITIZEN ACTIVISM A SMARTLY GOVERNED CITY WOULD BE REWARDING WITH TRIBUTES AND RIBBONS INSTEAD DESTROYING THE GARDEN FOR A LOWINCOME HOUSING PROJECT HAS BECOME THE TOP PRIORITY FOR THE HOUSING AGENCY'S HEAD SALLY HERNANDEZPINERO IN A SUDDEN HURRY TO QUALIFY FOR A RESTRICTED 4 MILLION HUD LOWINCOME HOUSING GRANT SHE INSISTS GROUND MUST BE BROKEN BY THE END OF THIS MONTH THOUGH A BLIND PERSON COULD FIND A QUALIFYING EMPTY LOT SOMEWHERE ELSE IN THE TOWN MS PINERO EVEN SENT OUT AN OFFICIAL LETTER TO CITY HOUSING RESIDENTS EXHORTING THEM TO SIGN PETITIONS FOR THE PROPOSED PROJECT ALSO PARTICIPATING IN THIS FARCE IS THE BOARD OF EDUCATION FOR EQUALLY MYSTERIOUS REASONS IT OVERRODE CHANCELLOR RAMON CORTINES VOTING TO LET PART OF THE GARDEN BE REGROWN ACROSS THE STREET IN THE PLAYGROUND OF A CONGESTED HIGH SCHOOL WHICH DOESN'T WANT IT THE 250000 THIS MAY COST COULD BUY A FEW USEFUL METAL DETECTORS AMONG OTHER THINGS THE ELECTION'S MESSAGE DOESN'T SEEM TO BE REACHING THE CITY'S POLITICOS AND LAME DUCKS STILL THE BATTLE BETWEEN AN URBAN GARDEN AND A GRANTDRIVEN HOUSING AGENCY SERVES AS A SUITABLE CODA TO THE POLITICAL ERA THAT MAY BE ENDING IN NEW YORK CITY NEW YORK'S GOVERNMENT AND THOSE OF BIG CITIES ELSEWHERE HAVE STRUGGLED FOR YEARS TO MICROMANAGE THEIR METROPOLISES INTO SOME DREAMY VISION OF WHAT CONSTITUTES THE PUBLIC GOOD VOTERS IN THESE CITIES ARE DECIDING THEY'VE HAD ENOUGH OF THAT WHICH ALSO SUGGESTS THAT IT'S TIME FOR NEW YORK'S BUREAUCRATS TO GIVE THE TROWEL BACK TO THE VOTERS INSIDE THE GARDEN SEE RELATED LETTER LETTERS TO THE EDITOR WHEN BACK YARDS ARE THREATENED WSJ DEC 3 1993 9311100112 YY93 MM12 9312030090 931104 RUNNING SCARED ELECTION DAY RESULTS MAKE CLINTON AGENDA HARDER SELL IN CONGRESS LEGISLATORS MAY BE WARIER ABOUT RISKING VOTER IRE ON ISSUES SUCH AS NAFTA A WARNING ABOUT TAX BOOSTS BY JAMES M PERRY AND GERALD F SEIB STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON LIFE JUST GOT A LOT MORE DIFFICULT FOR PRESIDENT CLINTON THE DEFEAT OF ALL THREE DEMOCRATIC CANDIDATES IN TUESDAY'S HIGHVISIBILITY RACES FOR GOVERNORS OF NEW JERSEY AND VIRGINIA AND FOR MAYOR OF NEW YORK DEMONSTRATES THAT A YEAR AFTER MR CLINTON'S ELECTION AS THE CANDIDATE OF CHANGE VOTERS ARE STILL AS ANGRY AND CANTANKEROUS AS EVER ANTIINCUMBENT FEVER IS RAGING FOR THE PRESIDENT SEEKING TO PASS ONE OF THE MOST COMPLICATED LEGISLATIVE PROGRAMS IN MODERN HISTORY THE RESULTS MEAN HE NOW FACES EVEN BIGGER PROBLEMS IN WHAT WAS ALREADY A FRACTIOUS CONGRESS AND FOR NERVOUS DEMOCRATIC MEMBERS AND EVEN SOME REPUBLICANS WHO MIGHT HAVE SUPPORTED SOME OF THE PRESIDENT'S INITIATIVES MAY DECIDE IT IS TIME TO START LOOKING FOR WAYS TO AVOID CONTROVERSIAL ISSUES VICTORIES TUESDAY BY CHRISTINE TODD WHITMAN IN NEW JERSEY GEORGE ALLEN IN VIRGINIA AND RUDOLPH GIULIANI IN NEW YORK OBVIOUSLY CHEER REPUBLICANS WHO HAD ALREADY WON SENATE SEATS IN GEORGIA AND TEXAS AND THE LOS ANGELES MAYORALTY SINCE MR CLINTON WAS ELECTED BUT THE MOST IMPORTANT THING ABOUT THE LATEST GOP WINS MAY BE THAT IN EACH CASE THE CANDIDATE OF THE INCUMBENT POLITICAL ESTABLISHMENT WAS DEFEATED THAT SENTIMENT AGAINST THE EXISTING STATE OF AFFAIRS IS LIKELY TO MAKE LAWMAKERS EVEN MORE EDGY THAN THEY ALREADY ARE ABOUT CASTING RISKY VOTES THESE PEOPLE ARE GOING TO BE SCARED OF THEIR OWN SHADOWS SAYS POLITICAL ANALYST CHARLES COOK THEY'RE JUST GOING TO BE REAL REAL REAL JUMPY OBVIOUSLY IT'S GOING TO HAVE A DRAMATIC EFFECT ON THEIR BEHAVIOR IF LAWMAKERS DON'T RESPOND TO VOTER CONCERNS TEXAS DEMOCRATIC REP CHARLES STENHOLM SAYS BLUNTLY THEY'RE GOING TO THROW US ALL OUT OF COURSE EACH OF THE BIG TUESDAY RACES WAS COLORED BY QUIRKY LOCAL CONSIDERATIONS AND MR CLINTON IMMEDIATELY ARTICULATED THE OFFICIAL DEMOCRATIC LINE THAT THE RESULTS DON'T OFFER MANY SWEEPING LESSONS I DON'T THINK YOU CAN DRAW TOO MUCH CONCLUSION FROM THIS HE ARGUED BUT THE OUTCOMES NONETHELESS MAKE HIS CAMPAIGN FOR THE NORTH AMERICAN FREE TRADE AGREEMENT ALREADY A HARD SELL MORE COMPLEX LOGICALLY THE ELECTIONS SHOULDN'T HAVE MUCH IMPACT ON NAFTA THE TRADE TREATY WASN'T A BIG ISSUE IN ANY OF THE RACES AND THE WHITE HOUSE IMMEDIATELY NOTED THAT ALL THREE REPUBLICAN WINNERS ARE NOMINAL NAFTA SUPPORTERS ONE OF THE LOSERS NEW JERSEY GOV JIM FLORIO OPPOSED NAFTA THE ELECTION RESULTS WON'T HAVE ANY NEGATIVE CONSEQUENCE FOR THE NAFTA VOTE ASSERTS HOWARD PASTER PRESIDENT CLINTON'S TOP LOBBYIST WITH CONGRESS LOGIC HOWEVER HAS LITTLE TO DO WITH POLITICAL PERCEPTIONS AND THE WHITE HOUSE'S TASK IS TO PERSUADE SEVERAL DOZEN FENCESITTING LAWMAKERS FROM BOTH PARTIES MANY WITH WHAT APPEARS TO BE ONLY A SHAKY HOLD ON THEIR SEATS TO CAST A CONTROVERSIAL VOTE JUST TWO WEEKS AFTER YESTERDAY'S SHAKEUP DEMOCRATS WHO TAKE A CHANCE ON SUPPORTING THE TREATY WANT TO KNOW THAT PRESIDENT CLINTON WILL HELP THEM WHEN THEY ARE CRITICIZED BACK HOME BUT TUESDAY'S RESULTS WILL LEAVE THEM WONDERING HOW MUCH HELP MR CLINTON CAN BE AND AS IT TURNS OUT THE THREE STATES THAT WERE TUESDAY'S PRINCIPAL BATTLEGROUNDS ARE HOME TO MORE THAN A DOZEN DEMOCRATS WHO ARE UNDECIDED ON NAFTA IT MAY HAVE SPELLED JEOPARDIZATION IF NOT THE DEATH KNELL FOR NAFTA SAYS REP JIM LEACH A MODERATE IOWA REPUBLICAN WHO SUPPORTS NAFTA OTHER OBSERVERS WERE MORE BLUNT I THINK NAFTA IS DEAD AND TUESDAY'S RESULTS WERE THE FINAL NAIL IN THE COFFIN SAYS GOP POLLSTER VINCE BREGLIO THE ELECTION'S OUTCOME ALSO COULD COMPLICATE MR CLINTON'S OTHER BIG INITIATIVE HEALTHCARE REFORM BECAUSE VOTES ON THAT PROGRAM ARE MUCH FURTHER OFF THE IMPACT WON'T BE SO DIRECT BUT THE VICTORIES BY ANTISPENDING REPUBLICANS COULD FEED SENTIMENT TO REDUCE THE SIZE OF THE CLINTON PLAN TO LOWER ITS COST CERTAINLY THE DEFEAT OF GOV FLORIO WHO WAS HAUNTED BY A 28 BILLION TAX INCREASE HE PUSHED THROUGH IN 1990 HAS SENT THE WHITE HOUSE A SIGNAL THAT TAX INCREASES STILL SPELL POLITICAL TROUBLE TO THE EXTENT THAT PEOPLE STILL ARE CONCERNED ABOUT INCREASED TAXES OF ANY KIND THAT'S SOMETHING WE'RE GOING TO HAVE TO PAY ATTENTION TO SAYS CLINTON BUDGET DIRECTOR LEON PANETTA IN SHORT HE SAYS PROPOSALS TO INCREASE SPENDING ON EVEN POPULAR PROGRAMS ARE GOING TO HAVE TO BE PAID FOR WITH CUTS IN OTHER SPENDING AND WHILE MR PANETTA DIDN'T MENTION IT SPECIFICALLY THAT ENVIRONMENT IS GOING TO REVIVE QUESTIONS ABOUT THE 65 BILLION CIGARETTE TAX IN THE CLINTON HEALTH PLAN THE GOOD NEWS FOR THE WHITE HOUSE WHILE TUESDAY'S RACES MAY GENERATE MORE QUESTIONS ABOUT THE DETAILS OF THE CLINTON HEALTH PLAN VOTERS' DESIRE TO SHAKE THINGS UP MAY INDUCE LAWMAKERS TO CAST SOME KIND OF VOTE TO CHANGE THE SYSTEM THEY CAN'T GO HOME NEXT YEAR WITHOUT VOTING FOR HEALTHCARE REFORM SAYS CELINDA LAKE A DEMOCRATIC POLLSTER ON THE OTHER HAND IT MAKES YOU MORE CONSERVATIVE ABOUT HOW YOU DO IT TUESDAY'S RETURNS ALSO ARE LIKELY TO AFFECT CONGRESS'S EFFORTS TO DEAL WITH A CRIME PACKAGE CRIME WAS A HOT ISSUE IN TUESDAY'S BALLOTING AND MR FLORIO IN NEW JERSEY AND MS TERRY IN VIRGINIA TRIED TO CAPITALIZE ON IT BY PUSHING GUNCONTROL POSITIONS AND ATTACKING THE NATIONAL RIFLE ASSOCIATION YET THEY BOTH LOST AND AT LEAST ONE OF THE WINNERS VIRGINIA'S MR ALLEN OPPOSED THE SOCALLED BRADY BILL WHICH WOULD IMPOSE A NATIONAL FIVEDAY WAITING PERIOD FOR THE LEGAL PURCHASE OF HANDGUNS THE NRA IS JUBILANT IT'S A MAJOR CHANGE IN AMERICAN POLITICS SAYS WAYNE LAPIERRE THE NRA'S EXECUTIVE VICE PRESIDENT PEOPLE WANT TO GET TOUGH WITH VIOLENT CRIMINALS THOUGH LIBERALS STILL BELIEVE THE BRADY BILL WILL PASS OVER NRA OBJECTIONS THEY NOW WORRY THAT FUTURE LEGISLATION TO TIGHTEN GUN CONTROLS MAY BE IN PERIL IT'S AN EXTREMELY TROUBLING MESSAGE ABOUT THE EFFORT FOR EFFECTIVE GUN CONTROL SAYS DEMOCRATIC REP ROBERT TORRICELLI OF NEW JERSEY WITH THE NRA HAVING SURVIVED THE ATTACKS ON IT THE EFFORT TO GO BEYOND THE BRADY BILL WILL BE ENDANGERED MR TORRICELLI BELIEVES ADVOCATES OF THE ANTICRIME PACKAGE MR CLINTON HAS PROPOSED ALSO WORRY THAT THE ELECTION RETURNS MAY INSPIRE SOME LAWMAKERS TO PUSH FOR A BIGSPENDING PROPOSAL TO CATCH UP WITH THE PUBLIC'S ANGER REP HENRY HYDE AN ILLINOIS REPUBLICAN TOOK THE HOUSE FLOOR YESTERDAY TO CALL FOR A MORE SWEEPING CRIME BILL THAT INCLUDES THE CONSTRUCTION OF NEW PRISONS TUESDAY'S VOTE SUGGESTS THAT SIMPLY RUNNING AGAINST THE NRA ISN'T ENOUGH TO WIN AND THAT THERE ARE SOME ANTICRIME MEASURES THAT MAY BE MORE APPEALING TO THE PUBLIC THAN GUN CONTROL IN VIRGINIA FOR INSTANCE MR ALLEN TRUMPED MS TERRY'S BRADY BILL SUPPORT BY CALLING FOR AN END TO PAROLE FOR ANYONE COMMITTING A VIOLENT CRIME THAT MEANS MR ALLEN SON OF THE LATE PRO FOOTBALL COACH GEORGE ALLEN WILL BE FORCED TO MAKE SOME DIFFICULT DECISIONS ON HOW TO PAY FOR NEW JAIL CELLS GIVEN HIS PLEDGE NOT TO RAISE TAXES VIRGINIA VOTERS ELECTED THEIR FIRST REPUBLICAN ATTORNEY GENERAL JAMES GILMORE A HARDLINE PROSECUTOR WHO WAS ALSO SUPPORTED BY THE NRA THE ONLY GOP LOSER IN VIRGINIA WAS HOMESCHOOLING ADVOCATE MICHAEL FARRIS A LONGTIME LEADER IN THE EVANGELICAL CHRISTIAN POLITICAL MOVEMENT WHO WAS DEFEATED BY INCUMBENT LT GOV DON BEYER IN NEW JERSEY MR FLORIO GAINED POINTS BY ATTACKING THE NRA ON GUN CONTROL EXIT POLLS SHOWED THAT ABOUT 70 OF THE VOTERS WHO CONSIDERED CRIME THE TOP ISSUE VOTED FOR HIM BUT MRS WHITMAN IN THE FINAL HOURS OF THE CAMPAIGN MANAGED TO RETURN THE DEBATE TO HER BEST ISSUE TAXES GIVEN THE ADDITIONAL EVIDENCE THAT VOTERS WANT TOUGHER APPROACHES TO SOLVING URBAN PROBLEMS MR CLINTON NOW MAY FEEL A NEED TO PUT HIS WELFAREREFORM PROPOSALS ON A FASTER TRACK VOTERS IN SAN FRANCISCO FOR EXAMPLE APPROVED A MEASURE TO FINGERPRINT ALL WELFARE RECIPIENTS AND MAKE THE ABLEBODIED AMONG THEM WORK AS MANY AS 18 HOURS A WEEK TUESDAY'S RESULTS ALSO MAY CHANGE THE WAY CONGRESS THINKS ABOUT CAMPAIGNFINANCE REFORM A SUBJECT THAT MOST MEMBERS WOULD JUST AS SOON FORGET BECAUSE OF THE VOTER ANGER EVIDENT IN TUESDAY'S BALLOTING THERE WILL NOW BE MORE MOMENTUM FOR CAMPAIGN REFORM SAYS MS LAKE THE DEMOCRATIC CONSULTANT LAWMAKERS SHE SAYS WILL WANT TO COMMUNICATE THEY ARE TAKING ON THE SPECIAL INTERESTS INSTEAD OF BEING IN THE POCKETS OF THE SPECIAL INTERESTS MR BREGLIO THE GOP POLLSTER CONCURS THE KEY FOR REPUBLICANS WILL NOW BE TO BECOME MORE RESPONSIVE HE SAYS PEOPLE WANT TO BELIEVE SOMEONE IS LISTENING TO THEM THE RESULTS ALSO MAY FOCUS MORE REPUBLICAN ATTENTION ON AN INTERNAL ISSUE THE RELATIONSHIP BETWEEN THEIR OWN CONSERVATIVE CHRISTIAN CONSTITUENCY AND OTHER ELEMENTS OF THE PARTY RALPH REED EXECUTIVE DIRECTOR OF TELEVANGELIST PAT ROBERTSON'S CHRISTIAN COALITION SAYS ONE OF THE HIGHLIGHTS OF TUESDAY'S ELECTION WAS THE FAILURE OF MS TERRY AND THE DEMOCRATS IN VIRGINIA TO SCORE MANY POINTS WITH THEIR ATTACKS ON MR FARRIS PERHAPS THE MOST SIGNIFICANT CHRISTIAN RIGHT CANDIDATE TO RUN FOR STATEWIDE OFFICE SO FAR MIKE DIDN'T LOSE BECAUSE HE WAS AN EXTREMIST SAYS MR REED HE LOST BECAUSE HE WAS OUTSPENT 10 TO 1 BY HIS OPPONENT MR REED PREDICTS DOZENS OF MIKE FARRISES WILL BE LINING UP TO RUN FOR OFFICE IN 1994 AND 1996 AS THE DUST SETTLES THE CLINTON WHITE HOUSE IS LIKELY TO PREACH THAT MR CLINTON IS IF ANYTHING A VICTIM OF HIS OWN SUCCESS HE SWEPT INTO OFFICE BY CONVINCING VOTERS THEY NEEDED CHANGE AND NOW FINDS HIS ADMINISTRATION BUFFETED BY THE VERY GROUNDSWELL HE HELPED CREATE AS NERVOUS LAWMAKERS LOOK FORWARD TO CONGRESSIONAL ELECTIONS NEXT YEAR THE WHITE HOUSE AND ITS ALLIES WILL ARGUE THAT THE WAY TO SATISFY VOTERS' DESIRE FOR CHANGE ISN'T TO HUNKER DOWN IN FRIGHT BUT TO ACCOMPLISH SOMETHING DOING NOTHING SAYS MR HART MEANS NOTHING GOOD FOR THESE PEOPLE SEE RELATED LETTER LETTERS TO THE EDITOR HE ISN'T THE FIRST WSJ DEC 2 1993 9311040009 YY93 MM12 9312030053 931126 ECONOMY AUTO SALES REMAIN ROBUST SPURRED BY LOW RATES AND STRONGER ECONOMY BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE RECOVERY IN THE US AUTO INDUSTRY REMAINED ROBUST IN MIDNOVEMBER AS LOWER INTEREST RATES AND A STRONGER ECONOMY HELPED TO LURE VALUECONSCIOUS CONSUMERS INTO DEALERSHIPS AS THE ECONOMY RECOVERS AND FINANCE RATES IMPROVE PENTUP DEMAND IS BEING REALIZED SAID SCOTT MERLIS AN ANALYST WITH MORGAN STANLEY MR MERLIS SAID HIGHER USEDCAR PRICES ARE ALSO FUELING NEWVEHICLE SALES USEDCAR PRICES ARE INCREASING FASTER THAN THEY HAVE IN FOUR YEARS HE SAID NORTH AMERICANBUILT VEHICLES SOLD AT A SEASONALLY ADJUSTED ANNUAL PACE OF 125 MILLION UNITS IN THE PERIOD FROM NOV 11 TO 20 THAT'S A HEFTY INCREASE FROM THE 103 MILLIONVEHICLE PACE A YEAR EARLIER BUT DOWN SLIGHTLY FROM THE 127 MILLION AVERAGE SELLING RATE IN THE PREVIOUS 30 DAYS ALTOGETHER AMERICANS BOUGHT 329618 NORTH AMERICANMADE CARS AND TRUCKS IN THE LATEST SALES PERIOD UP 205 FROM 273623 VEHICLES A YEAR EARLIER SALES OF MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS CONTINUED TO OUTPACE NEWCAR SALES LIGHTTRUCK SALES SURGED 241 IN MIDNOVEMBER WHILE CAR SALES ROSE 115 PEOPLE ARE FEELING MORE CONFIDENT SAID FRANK A URSOMARSO PRESIDENT OF UNION PARK PONTIAC & GMC TRUCK IN WILMINGTON DEL MANY PEOPLE ARE TRADING IN OLDER CARS THAT ARE JUST NOT USEFUL ANY MORE MR URSOMARSO SAID THE DEALERSHIP'S PONTIAC SALES ARE UP 254 SO FAR THIS YEAR AND ITS GMC TRUCK SALES HAVE JUMPED 57 AHEAD OF LAST YEAR'S SALES GENERAL MOTORS CORP POSTED AN 184 GAIN IN TOTAL VEHICLE SALES IN THE LATEST PERIOD GM'S CAR SALES ROSE 142 AND ITS TRUCK SALES JUMPED 251 GM'S SATURN SUBSIDIARY REPORTED A 195 SALES INCREASE AND ITS CHEVROLET DIVISION POSTED A 91 GAIN GM'S OLDSMOBILE DIVISION HOWEVER SAW SALES FALL 77 IN MIDNOVEMBER FORD MOTOR CO'S TOTAL VEHICLE SALES ROSE 216 IN THE LATEST PERIOD TO 99845 VEHICLES FORD'S CAR SALES ROSE 74 AND TRUCK SALES SURGED 393 IN MIDNOVEMBER THE COMPETITION BETWEEN FORD AND CHEVY FOR THE BESTSELLING TRUCK IN THE US IS INTENSIFYING SO FAR THIS YEAR FORD'S FSERIES PICKUP IS LEADING CHEVY'S C/K PICKUP BY 27445 VEHICLES CHEVY GENERAL MANAGER JIM PERKINS SAID THIS WEEK THAT HE BELIEVES FORD IS SPENDING MILLIONS OF DOLLARS TRANSFERRING FSERIES PICKUPS FROM RETAIL TO DAILY RENTAL ACCOUNTS TO GUARANTEE A SALES VICTORY IF IT'S GOING TO BE THIS WAY STOP THE TRAIN AND LET ME OFF MR PERKINS SAID FORD CALLED CHEVY'S CLAIM OUTRAGEOUS BUT IF THEY ARE PUTTING UP A WHITE FLAG WE'LL ACCEPT SAID PHIL NOVELL THE FORD DIVISION'S GENERAL SALES MANAGER ALL JAPANESE AUTO MAKERS REPORTED GAINS DURING THE LATEST SALES PERIOD ROBUST DEMAND FOR THE ALTIMA MIDSIZE SEDAN HELPED PUSH NISSAN MOTOR CO'S SALES UP 525 FROM A YEAR EARLIER TO 11727 VEHICLES HONDA MOTOR CO AND TOYOTA MOTOR CORP SAW SMALLER GAINS HONDA'S TOTAL US SALES ROSE 34 IN MIDNOVEMBER TO 18116 VEHICLES AND TOYOTA'S SALES EDGED UP 12 TO 27002 CARS AND TRUCKS MEANWHILE CHRYSLER CORP'S TOTAL CAR AND TRUCK SALES ROSE 37 IN MIDNOVEMBER ACCORDING TO ESTIMATES BY WARD'S AUTOMOTIVE REPORTS CHRYSLER DISCLOSES ITS US VEHICLE SALES ONLY AT THE END OF THE MONTH GENERAL MOTORS CORP'S CHEVROLET DIVISION SOLD 293 MORE CARS AND TRUCKS IN MIDNOVEMBER THAN A YEAR EARLIER THE COMPANY'S OLDSMOBILE DIVISION SOLD 273 MORE UNITS AND THE SATURN UNIT POSTED A 133 SALES DECLINE AN ARTICLE FRIDAY NOV 26 INCORRECTLY REPORTED THAT CHEVROLET'S SALES ROSE 91 OLDSMOBILE'S FELL 77 AND SATURN'S ROSE 195 9312030031 931110 STRANDS OF TIME A GENETICIST'S WORK ON DNA BEARS FRUIT FOR ANTHROPOLOGISTS VARIATIONS IN FRAGMENTS HINT SOME AMERICAN NATIVES MAY HAIL FROM POLYNESIA THE CONTROVERSY OVER EVE BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL ST LOUIS DOUGLAS C WALLACE CAN SEE THE FUTURE IN A TINY STRAND OF DNA HE CAN FORETELL FOR EXAMPLE WHETHER SOME PEOPLE WILL GO BLIND SOON HE MAY BE ABLE TO PREDICT WHETHER OTHERS WILL LOSE MEMORIES TO ALZHEIMER'S DISEASE DEVELOP THE TREMORS OF PARKINSON'S DISEASE OR SUFFER A HEART ATTACK BUT HE ALSO CAN PEER DEEP INTO THE PAST HE HAS LOOKED BACK MORE THAN 100000 YEARS TO THE FIRST HUMANS IN AFRICA AND RECENTLY AT A GATHERING HERE OF SCIENCE REPORTERS HE PAINTED A PICTURE OF PREHISTORIC MIGRATIONS EMERGING FROM DNA THAT IS EXCITING ANTHROPOLOGISTS THE SCENE DEPICTS GROUPS OF PREHISTORIC INTREPID MARINERS MOVING NOT OUT OF SIBERIA AS ANTHROPOLOGISTS HAVE LONG ASSUMED BUT OUT OF SOUTHEAST ASIA ACROSS THE PACIFIC INTO THE AMERICAS 6000 TO 12000 YEARS AGO IF THIS PICTURE IS ACCURATE IT MAKES MANY AMERICAN INDIANS DISTANT COUSINS OF THE POLYNESIANS DR WALLACE'S CRYSTAL BALL IS A UNIQUE FRAGMENT OF DNA HIDDEN IN EVERY HUMAN CELL THIS CLAIRVOYANT DNA IS DISTINCT AND SEPARATE FROM THE LONG STRINGS OF DNA THAT HOUSE ALMOST ALL HUMAN GENES IN THE CELL NUCLEUS IT RESIDES INSTEAD IN AN OUTLYING COMPARTMENT CALLED A MITOCHONDRION HENCE ITS NAME MITOCHONDRIAL DNA OR SIMPLY MTDNA THE MTDNA CONTAINS A MERE 37 GENES COMPARED WITH THE 50000 TO 100000 GENES IN NUCLEAR DNA AND THESE FEW MTDNA GENES ARE DEVOTED LARGELY TO THE MITOCHONDRIA'S PRINCIPAL JOB OF PRODUCING CHEMICAL ENERGY FOR THE THOUSANDS OF SECONDBYSECOND CHEMICAL REACTIONS IN A CELL YET ASTONISHED MEDICAL RESEARCHERS ARE FINDING THAT DEFECTS IN THIS SNIPPET OF DNA CAN CAUSE HUMAN DISEASE AND TO THE SURPRISE OF ANTHROPOLOGISTS MTDNA IS TURNING INTO A KIND OF BIOLOGICAL ROSETTA STONE FOR DECODING HUMAN ORIGINS FEW SCIENTISTS STUDYING MTDNA ARE PROBING DEEPER AND RISKING MORE THAN DOUG WALLACE A PROFESSOR OF GENETICS AND MOLECULAR MEDICINE AT EMORY UNIVERSITY IN ATLANTA SLIGHT AND BESPECTACLED THE 47YEAROLD SCIENTIST IS FAMOUS AMONG HIS STUDENTS FOR LOUD NECKTIES AND UNTIL RECENTLY HIS POLYESTER SUITS WHEN I FINALLY GOT A RAISE MY WIFE TOOK ALL MY LEISURE JACKETS AND THREW THEM AWAY HE SAYS CLEARLY MTDNA HAS BECOME DR WALLACE'S CONSUMING ALMOST OBSESSIVE INTEREST A SINGLE QUESTION CAN EASILY PROPEL HIM TO THE NEAREST BLACKBOARD FOR AN HOURLONG CHALK TALK ON THE SUBJECT HIS WORK HAS WON THE PRAISE OF HIS GENETICIST PEERS AND EVEN THE GRUDGING ADMIRATION OF THOSE OUTSIDE HIS DISCIPLINE YET THIS DETOUR INTO ANTHROPOLOGY VIA MTDNA ISN'T WITHOUT CONTROVERSY DR WALLACE FOR EXAMPLE SUBSCRIBES TO THE MUCHPUBLICIZED EVE HYPOTHESIS IN WHICH A READING OF MTDNA INDICATES MODERN HUMANS ORIGINATED IN AFRICA 100000 TO 200000 YEARS AGO SOME ANTHROPOLOGISTS RETORT THAT MTDNA IS AN UNRELIABLE CLOCK FOR TIMING HUMAN EVOLUTION AND THAT THE FOSSIL EVIDENCE SHOWS MODERN HUMANS EVOLVED MUCH EARLIER THAN MTDNA INDICATES I LIKE HIS WORK A LOT HE'S A VERY BRIGHT MAN SAYS MILFORD WOLPOFF PROFESSOR OF ANTHROPOLOGY AT THE UNIVERSITY OF MICHIGAN BUT THE EVE HYPOTHESIS IS A REACH TOO FAR DR WOLPOFF ADDS STILL THE SCIENTIFIC COMMUNITY RECOGNIZES THAT DR WALLACE IS ON TO SOMETHING AT LEAST TWO BIG UNIVERSITIES JOHNS HOPKINS AND HARVARD HAVE TRIED TO LURE HIM AWAY FROM ATLANTA WITH OFFERS THAT THE ACADEMIC GRAPEVINE CLAIMS WOULD RIVAL WHAT MANY COLLEGES OFFER FOOTBALL COACHES INSTEAD HE HAS CHOSEN TO STAY AT EMORY WHERE FOUR YEARS AGO HE WAS JAMMED INTO A 500SQUAREFOOT LABORATORY NOW DR WALLACE HEADS A DEPARTMENT WITH A BUDGET CLOSE TO 3 MILLION A YEAR 25000 SQUARE FEET OF LAB SPACE AND A STAFF OF 14 SCIENTISTS PLUS NINE YOUNG SCIENTISTSINTRAINING THEY LABOR IN A RESEARCH FIELD THAT EVEN GENETICISTS UNTIL RECENTLY CONSIDERED ARCANE EACH HUMAN CELL CONTAINS A FEW HUNDRED TO SEVERAL THOUSAND MITOCHONDRIA SCATTERED ABOUT OUTSIDE THE NUCLEUS THUS SCIENTISTS FOUND IT DIFFICULT TO BELIEVE THAT DNA IN A SINGLE MITOCHONDRION COULD HAVE MUCH EFFECT ON A CELL MUCH LESS A WHOLE HUMAN ORGANISM MOREOVER THERE WASN'T ANY EVIDENCE THAT INHERITANCE OF MUTANT MTDNA PRODUCED ANY PARTICULAR DISEASE ONLY OCCASIONALLY HAD RESEARCHERS RUN ACROSS RARE DISEASES THAT SEEMED TO INVOLVE A GENETIC DEFECT OUTSIDE OF THE NUCLEUS DR WALLACE SAYS HE FIRST GOT INTERESTED IN MTDNA AS A GRADUATE STUDENT IN MICROBIOLOGY AND GENETICS AT YALE UNIVERSITY IN THE EARLY 1970S HE WAS FASCINATED BY EVIDENCE THAT MITOCHONDRIA ARE ACTUALLY VESTIGES OF ANCIENT BACTERIA ABOUT 15 BILLION YEARS AGO THE THEORY GOES OXYGEN FIRST APPEARED IN THE ATMOSPHERE AND AN ANCIENT BACTERIUM DEVELOPED A NEW HIGHLY EFFICIENT WAY TO USE OXYGEN TO PRODUCE CHEMICAL ENERGY AT THE SAME TIME THE ANCIENT PROGENITOR OF ANIMAL AND HUMAN CELLS WHICH WAS POOR AT PRODUCING ENERGY HAPPENED TO BE GOOD AT GATHERING FOOD SO THE TWO FUSED TO TAKE ADVANTAGE OF EACH OTHER THE ULTIMATE IN SYMBIOSIS TODAY THE ENERGYGENERATING MITOCHONDRIA ARE ALL THAT IS LEFT OF THE ANCIENT BACTERIUM DR WALLACE SAYS BUT IT IS ANOTHER STRANGE PROPERTY OF MITOCHONDRIA THAT UNEXPECTEDLY THRUST THE YOUNG SCIENTIST INTO THE STUDY OF HUMAN ORIGINS HUMANS INHERIT TWO COPIES OF THE NUCLEAR GENES ONE FROM EACH PARENT BUT ONLY THE MOTHER'S MITOCHONDRIAL GENES ARE PASSED ON TO THE CHILD FOR REASONS STILL NOT FULLY UNDERSTOOD THUS EVERY PERSON'S MTDNA IS DESCENDED IN A DIRECT LINE THROUGH FEMALE ANCESTORS THERE ISN'T ANY DNA FROM THE FATHER'S SIDE OF THE FAMILY MIXED IN TO CONFUSE THE LINE OF DESCENT THIS PHENOMENON OF MATERNAL INHERITANCE HAD BEEN SEEN IN ANIMALS BUT IT WAS A YOUNG DOUG WALLACE WHO SHOWED IT OCCURRED IN HUMANS IN A SERIES OF EXPERIMENTS IN 1979 AT STANFORD UNIVERSITY IN PALO ALTO CALIF DR WALLACE WAS ONE OF A HANDFUL OF RESEARCHERS IN THE EARLY 1980S WHO SAW IN THIS MATERNAL INHERITANCE A WAY TO TELL HOW CLOSELY GROUPS OF PEOPLE ARE RELATED AS MTDNA IS PASSED DOWN FROM MOTHER TO DAUGHTER INNOCUOUS ALTERATIONS OR MUTATIONS ARE BOUND TO OCCUR OVER A FEW THOUSAND YEARS GROUPS OF PEOPLE WHO LIVE TOGETHER AND INTERMARRY WILL ACCUMULATE DISTINCTIVE PATTERNS OF THESE MUTATIONS IN 1981 DR WALLACE HEADED A STANFORD RESEARCH TEAM THAT FOUND THAT ETHNIC GROUPS COULD BE IDENTIFIED AND LINKED TO THEIR CONTINENT OF ORIGIN BY THE MUTATION PATTERNS IN THEIR MTDNA MOREOVER BY DETERMINING HOW OFTEN THESE TELLTALE MUTATIONS OCCURRED IT WAS POSSIBLE TO CALCULATE HOW LONG AGO CERTAIN GROUPS STOPPED INTERMARRYING AND SEPARATED EACH GOING OFF TO DEVELOP ITS OWN UNIQUE PATTERN OF MTDNA MUTATIONS EACH CONTINENT HAD A DIFFERENT PATTERN OF MTDNA MUTATIONS DR WALLACE RECALLS OF HIS RESEARCH FINDINGS AFRICANS HAD MTDNA VARIATIONS THAT DISTINGUISHED THEM FROM ASIANS WHO IN TURN HAD VARIATIONS THAT DISTINGUISHED THEM FROM EUROPEANAMERICAN CAUCASIANS THAT'S WHEN I KNEW WE HAD AN ANTHROPOLOGICAL STORY HE SAYS I'VE ALWAYS BEEN DEEPLY INTERESTED IN WHERE WE CAME FROM AND WHY WE'RE HERE HE SAYS BUT I NEVER IMAGINED I WOULD BE LUCKY ENOUGH TO BE HANDED A TOOL TO FIND OUT MORE RECENTLY THE MTDNA RECORD OF PREHISTORIC AMERICANS HAS COME TO FASCINATE THE EMORY GENETICIST DR WALLACE BEGAN STUDYING THE MTDNA OF NATIVE AMERICANS IN THE MID1980S IN HOPES OF RESOLVING A LONGRAGING DEBATE OVER WHEN PREHISTORIC PEOPLES ENTERED THE AMERICAS THE PRESUMPTION LONG HAS BEEN THAT THE ANCESTORS OF NATIVE AMERICANS CAME FROM SIBERIA BUT ANTHROPOLOGISTS HAVE ARGUED FOR YEARS OVER HOW MANY AND WHEN SUCH MIGRATIONS OCCURRED THE MTDNA ANALYSES ARE SHOWING THAT THE ANCESTORS OF THE AMERINDS WHO COMPRISE MOST NATIVE AMERICANS ENTERED THE AMERICAS IN A SINGLE MIGRATORY WAVE 20000 TO 40000 YEARS AGO DR WALLACE AND HIS EMORY COLLEAGUES ANTONIO TORRONI MICHAEL BROWN AND THEODORE SCHURR REPORTED LAST YEAR THIS PUTS HUMANS IN THE AMERICAS LONG BEFORE A FLUTED STONESPEAR POINT THE OLDEST AMERICAN TOOL EVER FOUND WAS DROPPED BY A PREHISTORIC DWELLER NEAR CLOVIS NM 11000 YEARS AGO THE RESEARCHERS ALSO FOUND THAT ANCESTORS OF THE NAVAJO APACHE AND OTHER MEMBERS OF A NATIVE AMERICAN GROUP KNOWN COLLECTIVELY AS THE NADENE ARE LATECOMERS THEY ENTERED THE CONTINENT IN A SECOND MIGRATION A MERE 5000 TO 10000 YEARS AGO THE RESEARCH INDICATES TO THEIR SURPRISE HOWEVER THE RESEARCHERS FOUND THAT NATIVE SIBERIANS LACK ONE PECULIAR MUTATION THAT APPEARED IN THE AMERINDS 6000 TO 10000 YEARS AGO THIS RAISES THE QUESTION OF WHERE IF NOT FROM SIBERIA THIS MTDNA ORIGINATED IT TURNS OUT DR WALLACE SAYS THAT THIS PARTICULAR MUTATION PATTERN IS ALSO FOUND IN ABORIGINAL POPULATIONS IN SOUTHEAST ASIA AND IN THE ISLANDS OF MELANESIA AND POLYNESIA THIS HINTS AT WHAT MAY HAVE BEEN ONE OF THE MOST ASTOUNDING MIGRATIONS IN HUMAN EXPERIENCE HE SAYS A GROUP OF ANCIENT PEOPLES MOVED OUT OF CHINA INTO MALAYSIA WHERE THEY BECAME SAILORS AND POPULATED THE ISLANDS OF THE SOUTH PACIFIC THEN SOME 6000 TO 12000 YEARS AGO THESE ANCIENT MARINERS MADE IT TO THE AMERICAS I DON'T KNOW HOW THEY CAME DR WALLACE SAYS THEY EITHER CAME ACROSS THE PACIFIC TO CENTRAL AND SOUTH AMERICA OR THEY WENT UP THE EAST COAST OF ASIA AND ACROSS THE NORTHERN PACIFIC TO ALASKA AND CANADA HE SAYS HE ALREADY IS EXAMINING MTDNA SAMPLES FROM NATIVES OF THE KAMCHATKA PENINSULA NORTH OF JAPAN TO SEE IF THERE IS ANY MTDNA TRACE OF THESE ANCIENT SAILORS WHILE MTDNA VIEWS INTO PREHISTORY FASCINATE THE EMORY GENETICIST IT IS THE PEEK INTO THE FUTURE THAT OFFERS THE BIGGEST PAYOFF DR WALLACE SAYS HE WAS PROPELLED INTO SCIENTIFIC PROMINENCE IN 1988 WHEN HE HEADED A TEAM THAT PROVED FOR THE FIRST TIME THAT A MUTATION IN THE MTDNA COULD PRODUCE A DISEASE CAUSING A RARE FORM OF BLINDNESS HE IS NOW ACCUMULATING EVIDENCE THAT MTDNA MUTATIONS MAY PLAY A MAJOR ROLE IN AGING AND IN THE DISEASES OF AGING LAST YEAR HE HEADED AN EMORY TEAM THAT DISCOVERED A FAMILY HAUNTED BY DIABETES AND DEAFNESS RESULTING FROM A MUTATION IN THE MITOCHONDRIAL GENES MORE RECENTLY HE AND EMORY NEUROLOGIST JOHN M SHOFFNER REPORTED THEY HAD LOOKED AT MTDNA IN BRAIN TISSUES FROM SEVEN DECEASED PEOPLE AGED 24 TO 94 THE OLDER THE PERSON THEY FOUND THE MORE NUMEROUS THE MUTATIONS IN THE MTDNA THIS WAS PARTICULARLY TRUE OF THE CORTEX THE THINKING PART OF THE BRAIN THE TWO SCIENTISTS ALSO HAVE LOOKED AT HEARTS AND FOUND THAT MITOCHONDRIAL DAMAGE BEGINS TO ACCUMULATE IN THE HEART AFTER AGE 40 AND THAT IT IS MANY TIMES MORE COMMON IN PATIENTS WITH HEART DISEASE THAN IN HEALTHY PEOPLE DAMAGE TO THE MTDNA MAY WELL EXPLAIN WHY THESE AND OTHER DISEASES ARE MOST COMMON IN THE ELDERLY DR WALLACE SAYS THE MITOCHONDRIA DEAL IN CONVERTING OXYGEN TO CHEMICAL ENERGY THEREFORE THEY ARE EXPOSED TO SOCALLED OXYGEN FREE RADICALS POISONOUS MOLECULES CREATED BRIEFLY DURING CHEMICAL REACTIONS DR WALLACE ARGUES THAT IN THE EARLY YEARS WHEN CELLS ARE FILLED WITH THOUSANDS OF ENERGYPRODUCING MITOCHONDRIA THE LOSS OF A FEW HAS NO CONSEQUENCES BUT AS THE YEARS PASS AND MORE AND MORE MITOCHONDRIA DIE OFF ORGANS REACH A POINT WHERE THEY NO LONGER HAVE ENOUGH ENERGY TO FUNCTION DISEASE AND EVENTUALLY DEATH FOLLOWS SEE RELATED LETTER LETTERS TO THE EDITOR THE SEEDS OF MYTH WSJ DEC 2 1993 9311100073 YY93 MM12 9312030027 931109 NOBLE LIFERS THE HOUSE OF LORDS IS AN ANACHRONISM THAT IS WITHOUT PEER EVEN SCANDAL CAN'T UNSEAT MEMBERS A DIVERSE LOT STILL MOSTLY A MEN'S CLUB UNACCOUNTABLE NOACCOUNTS BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WERE AN AMERICAN POLITICIAN TO BE CONVICTED OF COCAINE POSSESSION AND BURGLARY IT ALMOST SURELY WOULD MEAN GOODBYE TO PUBLIC OFFICE YET HERE IN BRITAIN JAMIE BLANDFORD'S CONVICTIONS AND IMPRISONMENTS FOR THOSE CRIMES AS WELL AS SUNDRY TRAFFIC OFFENSES HAVEN'T ENDED HIS POLITICAL CAREER NEITHER DID THE PUBLICIZED SPECTACLE LAST JUNE WHEN HE WAS DRAGGED YET AGAIN TO PRISON SWEARING AND SCREAMING FOR ALLEGED FAILURE TO PAY CHILD SUPPORT AFTER ALL THAT MR BLANDFORD REMAINS THE MARQUESS OF BLANDFORD HEIR TO THE 11TH DUKE OF MARLBOROUGH A TITLE THAT COMES WITH A SEAT IN THE HOUSE OF LORDS AND A VOTE ON ISSUES OF NATIONAL IMPORTANCE HE HAS THE TITLE INHERITED FROM HIS FATHER BECAUSE HE IS HIS FATHER'S ELDEST SON AN OLDER BROTHER HAVING DIED IN INFANCY MR BLANDFORD OUT OF PRISON NOW AND HE SAYS FREE OF DRUGS RECENTLY BOASTED TO BRITISH REPORTERS THAT I SHARE THE SAME ILLUSTRIOUS BLOOD AS MY ANCESTORS NOTABLY THE CHURCHILLS IT'S DISGUSTING SAYS DAVINA JAMESHANMAN A SOCIAL WORKER EATING LUNCH AT THE WORKERS CAFE HERE THE LIKES OF HIM IN PARLIAMENT THE 1183MEMBER HOUSE OF LORDS THE UPPER CHAMBER OF PARLIAMENT IS POPULATED WITH ACCIDENTAL POLITICIANS AN IOWA NEWSPAPER COLUMNIST WHO IS A BRITISH SUBJECT A LONDON BUS DRIVER A FORTUNETELLER NAMED LADY STRANGE AND THERE IS NOTHING TO BE DONE ABOUT IT CHANGING THE RULES WOULD REQUIRE APPROVAL BY THE HOUSE OF COMMONS WHICH IS HAPPY ENOUGH WITH THE STATUS QUO MARGARET THATCHER MAY HAVE PLAYED A VITAL ROLE IN TURNING THE FORMER SOVIET UNION TOWARD DEMOCRACY AS SHE SUGGESTS IN HER RECENTLY PUBLISHED MEMOIRS AND THE BRITISH MEDIA ARE OVERPOPULATED WITH EXPERTS ON HOW POLAND AND OTHER BUDDING DEMOCRACIES OUGHT TO PROCEED BUT BRITAIN'S BRIGHTEST LIGHTS GO DARK ON THE PROBLEM OF THE LORDS THE HOUSE OF LORDS IS AN UNELECTED BODY THAT ANSWERS TO NO CONSTITUENTS ITS MEMBERSHIP IS EITHER HEREDITARY OR THE RESULT OF POLITICAL PATRONAGE OF ALL LORDS MEMBERS WHO ARE CALLED PEERS 93 ARE MALE BECAUSE MOST HEREDITARY TITLES CAN'T PASS TO DAUGHTERS AND UNLIKE THE MONARCHY AN ANACHRONISM THAT SERVES A CEREMONIAL PURPOSE THE UPPER HOUSE WIELDS ACTUAL LEGISLATIVE POWER THE HOUSE OF LORDS IS INDEFENSIBLE CONCEDES THE FIFTH EARL RUSSELL A NOTED HISTORIAN WHOSE TITLE CAME VIA HIS FATHER PHILOSOPHER BERTRAND RUSSELL A NONHEREDITARY TITLE DIES WITH THE HOLDER BUT LORD RUSSELL INSISTS THAT INDEFENSIBLE AS IT MAY BE THE SYSTEM WORKS AND IT'S HARD TO IMAGINE ANYONE DEVISING AN ACCEPTABLE WAY OF CHANGING IT NOT THAT THERE ISN'T TALK SOME TORY STRATEGISTS HAVE SUGGESTED THAT REFORMING THE HOUSE OF LORDS COULD IMPROVE CONSERVATIVE PARTY PRIME MINISTER JOHN MAJOR'S STANDING WITH VOTERS BATTERED BY RECESSION AND RESENTFUL OF PRIVILEGE AND THE LABOR PARTY WHICH JUST NOW ACCORDING TO OPINION POLLS WOULD WIN A NATIONAL ELECTION AND THUS A MAJORITY OF SEATS IN THE HOUSE OF COMMONS HAS VOWED TO MAKE THE LORDS AN ENTIRELY ELECTED BODY OR ELSE ABOLISH IT TONY BLAIR DOMESTICAFFAIRS SPOKESMAN FOR LABOR SAID TO MUCH APPLAUSE AT THE PARTY'S ANNUAL CONFERENCE THIS FALL THE IDEA OF HEREDITARY PEERS DECIDING ISSUES OF VITAL IMPORTANCE TO THE ORDINARY PEOPLE OF OUR COUNTRY IS AN INSULT TO MODERN DEMOCRACY THE PRESS IS ALSO BASHING THE LORDS HIGHLIGHTING THE ABSURDITY OF A CHAMBER CONCERNED ON THE ONE HAND WITH WHETHER THE LATE LORD MOYNIHAN LEGALLY DIVORCED HIS FOURTH WIFE AN ISSUE THAT COULD DETERMINE WHETHER HIS RIGHTFUL HEIR IS THE TWOYEAROLD OFFSPRING OF HIS FIFTH WIFE AND ON THE OTHER HAND WITH WHETHER ENGLAND OUGHT TO RATIFY THE MAASTRICHT TREATY ON EUROPEAN UNITY AN INCREDULOUS WRITER FOR THE GUARDIAN NEWSPAPER OPINED LAST JULY THAT WHILE THE PAGEANTRY OF THE HOUSE OF LORDS MAKES FOR GREAT THEATER THIS IS THE REAL MAASTRICHT BILL AND THESE POLTROONS ARE INCREDIBLY ALLOWED TO DEBATE CHANGES THE ARRANGEMENT SOMETIMES EMBARRASSES THEIR LORDSHIPS AS SOMEONE WHO HAS DONE NOTHING TO EARN THIS EXCEPT THE ACCIDENT OF BIRTH I FEEL GUILTY ABOUT IT SAYS THE THIRD BARON KILBRACKEN SIPPING ALE ONE EVENING IN THE CHAMBER'S OAKPANELED BAR WHITETIED ATTENDANTS HOVERING NEARBY CALL HIM MY LORD BUT THE 73YEAROLD AUTHOR WHO HAS SHOULDERLENGTH HAIR AND A WILD BEARD CALLS HIMSELF A VAGRANT THERE BEING LIMITED ROYALTIES FROM SUCH BOOKS OF HIS AS THE EASY WAY TO TREE RECOGNITION I WOULD HAVE TO SUPPORT ABOLISHMENT OF THE HOUSE OF LORDS ON PRINCIPLE HE SAYS BUT I WOULD HATE TO LOSE USE OF ITS LIBRARY THE LORDS' LIBRARY IS EXCELLENT INDEED WITH ITS LIBRARY REDCARPETED CORRIDORS GOTHIC ARCHITECTURE AND ELEGANT DINING ROOM THE HOUSE OF LORDS OFFERS ALL THE AMENITIES OF A GENTLEMEN'S CLUB WITHOUT THE ANNUAL FEE PEERS GET NO SALARY BUT CAN CLAIM AN EXPENSE ALLOWANCE AMOUNTING TO NEARLY 200 FOR EACH DAY THEY SHOW UP NO QUESTIONS ASKED OR RECEIPTS REQUIRED PERFECT ATTENDANCE THUS CAN BE WORTH 30000 A YEAR TAXFREE CRITICS SAY THE 35 MILLION IT COSTS TO OPERATE THE HOUSE OF LORDS ANNUALLY IS REASON ENOUGH FOR ABOLISHING IT BUT FEW PEOPLE REALLY EXPECT SUCH A CATACLYSM AFTER ALL THE PEERAGE HAS PROVED RESISTANT TO IT IN 1911 PARLIAMENT ENACTED A BILL PLEDGING TO RESTRUCTURE THE UPPER HOUSE THEN TOOK NO STEP IN THAT DIRECTION UNTIL 1958 WHEN IT INITIATED LIFE APPOINTMENTS TO BE AWARDED TO RETIRED MINISTERS CERTAIN RETIRED MEMBERS OF COMMONS AND DISTINGUISHED CITIZENS BEFORE THEN ALL SEATS WERE HEREDITARY THE APPOINTMENTS AREN'T HEREDITARY THE GOVERNMENT IN CONJUNCTION WITH THE OPPOSITION PARTIES DRAWS UP A LIST OF APPOINTEES EACH YEAR AND GIVES IT TO THE QUEEN WHO MAKES THEM OFFICIAL BUT TODAY HEREDITARY MEMBERS STILL OUTNUMBER LIFE MEMBERS 775 TO 408 EVEN PROPOSALS FOR RELATIVELY MINOR CHANGE HAVE FAILED SUCH AS THE BILL LAST YEAR TO ABOLISH RESTRICTIONS ON THE PASSAGE OF HEREDITARY TITLES TO DAUGHTERS BESIDES REDUCING SEXISM PROPONENTS ARGUED ALLOWING TITLES TO PASS TO DAUGHTERS AS WELL AS TO SONS WOULD KEEP LORDS AND LADIES FROM HAVING CHILD AFTER CHILD IN PURSUIT OF SONS BUT OPPONENTS WON 2 TO 1 IN THE HOUSE OF LORDS THAT DASHED THE HOPES OF DIANE ZITCER THE ELDEST OF FOUR CHILDREN OF LORD MORRIS OF KENWOOD A RETIRED TRAVEL AGENT UPON HIS DEATH HIS TITLE WILL PASS TO THE YOUNGEST CHILD A BROTHER NINE YEARS MS ZITCER'S JUNIOR WHEN HE WAS A SNOTTYNOSED CHILD I MINDED IT A LOT SAYS MS ZITCER A JOURNALIST IN HER EARLY 30S BUT THE HOUSE OF COMMONS LIKES THE ARRANGEMENT AS IT IS AND WHY NOT THE HOUSE OF LORDS DOES ALL THE DIRTY WORK FIGURING OUT HOW TO IMPLEMENT COMMONS LEGISLATION FOR INSTANCE THE DRY BUSINESS OF HAMMERING OUT DETAILS OF A SCHOOLREFORM BILL THIS YEAR FELL TO THE LORDS WHICH TACKED ON 580 AMENDMENTS HEAVY ON MINUTIAE IN THE VIEW OF COMMONS AN EVEN GREATER VIRTUE OF THE HOUSE OF LORDS IS ITS LEGISLATIVE WEAKNESS IT CAN DELAY THE IMPLEMENTATION OF BILLS PASSED BY COMMONS FOR 13 MONTHS WHICH MAKES THE LORDS MOST POWERFUL BEFORE ELECTIONS AND WHEN DEBATING TIMESENSITIVE ISSUES SUCH AS MAASTRICHT WHICH HAD TO BE RATIFIED BY AUGUST BUT IT HAS NO AUTHORITY TO VETO COMMONS LEGISLATION AS COMMONS DOES LORDS' DEMOCRATIZING THE LORDS WOULD ELIMINATE THE ONLY ARGUMENT FOR COMMONS' GREATER POWER THAT IT IS AN ELECTED BODY AND COMMONS HERETOFORE HAS OPPOSED ANY REFORM THAT WOULD STRENGTHEN THE UPPER HOUSE YET THE MAIN IMPEDIMENT TO REFORM IS THAT THE HOUSE OF LORDS IS EFFECTIVE THE LORDS IS DIFFICULT TO DEFEND FOR EVERY REASON EXCEPT ONE SAYS LORD DENHAM A PEER SINCE 1948 IT HAPPENS TO WORK INDEED LORDS SAY LEGISLATING IS EASIER WITHOUT CONSTITUENTS TO WORRY ABOUT AND ELECTIONS TO RUN IN AND WHEREAS VOTING AGAINST ONE'S PARTY IN COMMONS CAN BE POLITICALLY SUICIDAL A PARTY CAN DECLINE TO RENOMINATE ITS BLACK SHEEP IN THE NEXT ELECTION PEERS ROUTINELY BALK AND THEY DO SO WITH IMPUNITY JUST DAYS AGO FOR INSTANCE TORY PEERS AMENDED THE TORY GOVERNMENT'S RAILWAY PRIVATIZATION BILL INFURIATING JOHN MAJOR'S GOVERNMENT HEREDITY PRODUCES A MORE DIVERSE BUNCH OF LEGISLATORS THAN SITS IN THE DEMOCRATICALLY ELECTED US SENATE ORIGINALLY A HIGHFALUTIN BUNCH OF BUSINESS MILITARY AND POLITICAL LEADERS IN THE BRITISH ISLES THE HOUSE OF LORDS NOW BOASTS MEMBERS IN EVERY SOCIAL CLASS AND ON NEARLY EVERY CONTINENT IN AMERICA ALONE THERE ARE NEARLY A DOZEN LORDS AS WELL AS COUNTLESS LORDSTOBE SUCH AS COMEDIAN CHRISTOPHER GUEST A FORMER REGULAR ON SATURDAY NIGHT LIVE AND THE HUSBAND OF ACTRESS JAMIE LEE CURTIS IN A CHAMBER WITH ABYSMAL ATTENDANCE TURNOUT FOR THE AVERAGE MEETING IS 30 SOME OF THE MORE DISTANT MEMBERS NEVER SHOW UP AT ALL SUCH AS THE FIFTH EARL OF WHARNCLIFFE A MAINE CONSTRUCTION FOREMAN NAMED RICHARD WORTLEY BUT RICHARD ACTON WHO WRITES A COLUMN FOR THE DES MOINES REGISTER UNDER THE BYLINE LORD ACTON FREQUENTLY TRAVELS TO PARLIAMENT FROM HIS HOME IN CEDAR RAPIDS IOWA I'VE ATTENDED 50SOMETHING DAYS THIS YEAR HE SAID IN EARLY OCTOBER BY THE STANDARDS OF THE HOUSE OF LORDS I'M A REGULAR ATTENDER LORDS IS USUALLY IN SESSION ABOUT 150 DAYS A YEAR IN THE LORDS THE RANGE OF PROFESSIONS IS SO CONSIDERABLE THAT THE NEED TO CALL IN OUTSIDE EXPERTS RARELY ARISES FOR FISHFARMING EXPERTISE THE CHAMBER CAN TURN TO THE EIGHTH EARL OF RADNOR AND FOR LAW AND ORDER TO THE NINTH EARL NELSON A CONSTABLE THE RESIDENT GAMBLING EXPERT IS LORD KILBRACKEN FORMER HORSERACING CORRESPONDENT FOR THE DAILY MIRROR ON MATTERS SUPERNATURAL THE LORDS CAN CONSULT LADY STRANGE A READER OF TEA LEAVES OR THE EIGHTH EARL OF CLANCARTY PRESIDENT OF A WORLDWIDE UFOWATCH GROUP OR ANY OF 25 BISHOPS OF THE CHURCH OF ENGLAND WHO ARE PEERS CURIOUSLY OBSERVES LORD RUSSELL THE LORDS REPRESENTS THE ELECTORATE A LOT MORE ACCURATELY THAN MOST ELECTED BODIES AS IT HAPPENS MUCH OF THE PEERAGE WOULDN'T HAVE ENOUGH MONEY OF THEIR OWN TO CAMPAIGN FOR SAY THE US HOUSE OF REPRESENTATIVES RETURNING A REPORTER'S CALL LORD KILMARNOCK QUICKLY ASKS TO BE RUNG BACK TO SPARE HIM THE SIXCENTSAMINUTE COST OF A LOCAL CALL THE FAMILY FORTUNE WAS SEIZED BY THE MONARCHY MORE THAN 200 YEARS AGO HE SAYS THE SIXTH LORD ADDINGTON OWES HIS HUMBLE CIRCUMSTANCES TO THE RUSSIAN REVOLUTION WHICH STRANGLED THE TRADING BUSINESS WITH RUSSIA THAT HAD ENRICHED THE FIRST LORD ADDINGTON BUT WHO'S COMPLAINING INHERITING THE TITLE AS A 19YEAROLD UNIVERSITY STUDENT GAVE THE SIXTH LORD ADDINGTON SOMETHING MANY OF HIS FRIENDS LACKED A JOB TO GO TO UPON GRADUATION IT'S A GREAT PRIVILEGE SAYS LORD ADDINGTON NOW 30 YEARS OLD IF YOU DON'T MIND LIVING OFF BOILED RICE THEIR UNACCOUNTABILITY TO VOTERS DOESN'T HOWEVER EXEMPT THEIR LORDSHIPS FROM PUBLIC SCRUTINY IF ANYTHING RULE BY BIRTHRIGHT INVITES NASTINESS AS THE 20TH EARL OF CAITHNESS DISCOVERED FIRST OBSERVERS DUBBED HIM TOXIE BECAUSE OF HIS ALLEGED RESEMBLANCE TO A DOLL CALLED THE TOXIC AVENGER THEN CAME NEWS STORIES PUBLICIZING HIS ANCESTORS' SINS SUCH AS THIS FROM THE GUARDIAN FOURTH EARL OF CAITHNESS PERSUADED COUSIN TO POISON EARL AND COUNTESS OF SUTHERLAND ALSO INSTRUMENTAL IN OTHER MURDERS AMONG THEM HIS OWN SON FIFTH EARL MURDERED EVEN MORE PEOPLE AND SO ON FINALLY THE PRESS CHALKED IT UP TO HEREDITY WHEN YEARS OF HARD WORK IN THE LORDS WON HIM A GOVERNMENT MINISTRY FOR AVIATION AND SHIPPING THIS YEAR A GUARDIAN COLUMNIST SAID OF THE 20TH EARL IN 1455 AN ANCESTOR EARNED THE TITLE FOR SUNDRY SERVICES TO THE SCOTTISH CROWN INCLUDING SUPERINTENDING THE MOVE OF A LARGE CANNON ACROSS HALF OF SCOTLAND AND MORE THAN FIVE CENTURIES LATER THE LOINS OF SUCCESSIVE CAITHNESSES HAVE PRODUCED THIS CREATURE CRITICISM OF THE PEERAGE GAINS FORCE FROM ALL THE PUBLICITY SHOWERED ON SCANDAL INVOLVING LORDS IN 26 YEARS AS A PEER LORD MOYNIHAN DISPLAYED LITTLE LEGISLATIVE ABILITY INDEED HE ALMOST NEVER SHOWED UP BUT FEW BRITONS HAVE NOT HEARD ABOUT HIS FIVE WIVES TWO OF THEM BELLY DANCERS HIS FLIGHT FROM ENGLAND TO AVOID CHARGES OF DRUGSMUGGLING AND FRAUD OR THE PHILIPPINE BROTHEL HE RAN CALLED THE YELLOW BRICK ROAD HE ONCE SAID THE LADIES DO ALL THE WORK AND I JUST COLLECT THE MONEY EVEN NOW TWO YEARS AFTER HIS DEATH THE MOST RIVETING QUESTION AT THE HOUSE OF LORDS CONCERNS HIS SEAT WILL IT GO TO HIS TWOYEAROLD FILIPINO SON WHO MAY BE ILLEGITIMATE IF THE LORD'S FOURTH MARRIAGE TURNS OUT NOT TO HAVE BEEN LEGALLY DISSOLVED OR WILL IT GO TO THE LORD'S MIDDLEAGED HALF BROTHER BECAUSE THERE ARE NO OTHER SONS THERE IS ALSO THE QUESTION OF WHO WILL REPLACE HIM AS HOUSE ENFANT TERRIBLE THE MARQUESS OF BLANDFORD RECOVERING DRUG ADDICT AND EXCONVICT WON'T INHERIT A SEAT UNTIL HIS FATHER DIES BUT THE SEVENTH MARQUESS OF BATH SHOWS PROMISE ONLY DAYS AGO IN THE PEERAGE'S VICTORIAN CHAMBER THE PONYTAILED 61YEAROLD OFFICIALLY JOINED THE LORDS HIS FATHER HAVING DIED RECENTLY IN A RITUAL PERFORMED BEFORE THE QUEEN'S THRONE BY MEN IN WIGS AND RED ROBES BUT PRESS ACCOUNTS DIDN'T DWELL ON PAGEANTRY OR HIS EDUCATIONAL AND PROFESSIONAL ACCOMPLISHMENTS OR THE POSITIONS HE IS LIKELY TO TAKE AS A LEGISLATOR RATHER THEY FOCUSED ON THE GIRLFRIENDS WHOM HE CALLS WIFELETS LIVING FROM TIME TO TIME AT LONGLEAT THE 16THCENTURY MANSION HE SHARES WITH HIS WIFE THE ESTATE ALSO IS HOME TO HIS LATE FATHER'S FAMOUS WILDLIFE PARK KNOWN AS THE LIONS OF LONGLEAT WHICH EXPLAINS THE NICKNAME JOURNALISTS HERE QUICKLY DEVISED FOR HIM THE LOINS OF LONGLEAT SEE RELATED LETTER LETTERS TO THE EDITOR INCREDIBLE YELLOW STOCKINGED MALVOLIOS WSJ DEC 2 1993 9311090065 YY93 MM12 9312030104 931018 THE ANOREXIC MAN HAS GOOD REASON TO FEEL NEGLECTED HIS EATING DISORDER IS THOUGHT TO BE A WOMEN'S PROBLEM GLARES IN GROUP THERAPY BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PATRICK ENGELMANN PLAYED THE ROLE OF OUTCAST WHEN HE JOINED A THERAPY GROUP FOR PEOPLE WITH EATING DISORDERS THE 30YEAROLD MR ENGELMANN KNOWS ALL TOO WELL THAT SOME MEN DO HE IS A RECOVERING ANOREXIC AND BULIMIC WHO THOUGH 6 FEET TALL AT ONE POINT WAS DOWN TO JUST 108 POUNDS PHYSICIANS AND THERAPISTS SAY THEY ARE SEEING AN INCREASING NUMBER OF MEN WHO SUFFER FROM ANOREXIA AN OBSESSION WITH LOSING WEIGHT COMBINED WITH STARVING ONESELF AND EXERCISING TOO MUCH AND BULIMIA BINGEING AND PURGING CONDITIONS LONG ASSOCIATED WITH YOUNG WOMEN ACCORDING TO THE NATIONAL ASSOCIATION OF ANOREXIA NERVOSA AND ASSOCIATED DISORDERS ABOUT ONE MILLION MEN IN THE US SUFFER FROM EATING DISORDERS COMPARED TO EIGHT MILLION WOMEN BUT WHEN MEN SEEK HELP THEY ARE SUBJECT TO NEGLECT AND EVEN BIAS SAYS ARNOLD E ANDERSEN A UNIVERSITY OF IOWA PSYCHIATRIST DOCTORS OFTEN MISDIAGNOSE THEM WHILE FRIENDS AND FAMILY IGNORE SYMPTOMS VERY LONELY IS HOW MR ENGELMANN DESCRIBES THE NINE YEARS HE SPENT ALTERNATING BETWEEN STARVING GORGING HIMSELF AND EXERCISING THREE TO FOUR HOURS A DAY IT TOOK NEARLY THAT LONG FOR HIS FAMILY TO TALK ABOUT IT AT HOME MUCH LESS ACKNOWLEDGE TO OTHERS THAT HE SUFFERED FROM ANOREXIA AND BULIMIA HIS COWORKERS AT THE DAVENPORT IOWA BANK WHERE HE WORKED IN PRODUCT DEVELOPMENT ALSO NEVER CAUGHT ON EVEN THOUGH HE WOULD LOCK HIMSELF IN THE OFFICE BATHROOM AND DO CALISTHENICS TO WORK OFF LUNCH SOMETIMES HE WOULD RUN UP AND DOWN 12 FLIGHTS OF STAIRS IN HIS BUSINESS SUIT NO ONE AT THE BANK SAID ANYTHING TO HIM ABOUT HOW HE LOOKED AND ACTED EVEN THOUGH MR ENGELMANN SEEMED TO BE WASTING AWAY OCCASIONALLY SOME OF HIS OVERWEIGHT COLLEAGUES UNAWARE OF HIS PRIVATE AGONY WOULD SAY I'D GIVE ANYTHING TO HAVE YOUR BODY THAT SHOCKS HIM NOW THAT HE IS RECOVERING WHEN HE LOOKS AT PICTURES OF HIMSELF AT HIS THINNEST HE SEES A VERY FRAIL OLDLOOKING PERSON HE ULTIMATELY QUIT THE BANK JOB TO CONCENTRATE ON GETTING HIS EATING DISORDER UNDER CONTROL HIS FAMILY AND COWORKERS ALSO NEVER ASKED WHY HE WORE MULTIPLE LAYERS OF CLOTHING IN THE HEAT OF SUMMER HE WAS SO UNDERWEIGHT THAT HE ALWAYS FELT COLD HE SAYS HE RAISED NO EYEBROWS AT A BUFFETSTYLE RESTAURANT WHEN HE WOULD BINGE FOR HOURS AT A TIME I COULD DO IT WITHOUT DRAWING MUCH ATTENTION TO MYSELF HE SAYS I THINK A WOMAN GOING BACK AND FILLING PLATE AFTER PLATE OF FOOD WOULD CERTAINLY BE NOTICED AND TALKED ABOUT GROUP THERAPY SESSIONS WHERE MR ENGELMANN USUALLY WAS THE ONLY MALE PATIENT HEIGHTENED HIS FEELINGS OF ISOLATION THE WOMEN EITHER REFUSED TO RECOGNIZE HIS PROBLEM OR BERATED HIM FOR INTRUDING ON THE GROUP IN SUCH A HOSTILE SETTING HE COULDN'T EXORCISE HIS DEMONS SOMETIMES I HAD WHAT I CALL DRY CRIES WHERE I BASICALLY WAS GOING THROUGH THE MOTIONS BUT NOTHING CAME OUT HE SAYS TIM LUKAN A 21YEAROLD ANOREXIC AND BULIMIC FROM CEDAR RAPIDS IOWA FEELS SIMILARLY INVISIBLE AND ISOLATED HE WEIGHS JUST UNDER 130 POUNDS UP FROM 100 A FEW MONTHS AGO BUT STILL RATHER BONY FOR A MAN 6 FOOT 2 HE SAYS ACQUAINTANCES DON'T BAT AN EYE WHEN HE TELLS THEM THAT HIS FREQUENT HOSPITALIZATIONS ARE FOR DEPRESSION HE FEELS THAT SOUNDS MORE MANLY SOMEHOW THAN ANOREXIA I FEEL SEPARATE FROM EVERYONE ELSE HE SAYS DIFFERENT BUT THERE'S A LOT OF US MEN WITH EATING DISORDERS OUT THERE THEY'RE JUST TOO SCARED TO TELL MR LUKAN'S CLOSEST CONFIDANT IS A MALE EATINGDISORDER PATIENT WHOM HE MET IN A HOSPITAL IN IOWA CITY AND WHO NOW LIVES IN PENNSYLVANIA THEY EXCHANGE LETTERS SOMETIMES SEVERAL A WEEK WE PRETTY MUCH TALK ABOUT EVERYTHING MR LUKAN SAYS THINGS YOU REALLY CAN'T TELL A GIRL BECAUSE YOU FEEL STUPID ONE TOPIC MR LUKAN HAS DIFFICULTY DISCUSSING IS HIS DRINKING A PROBLEM WHICH FOR MANY MEN IS SAID TO GO HAND IN HAND WITH EATING DISORDERS I GOT DRUNK EVERY NIGHT AFTER I GOT OUT OF THE HOSPITAL THE SECOND TIME HE SAYS AMONG COLLEGEAGE MEN EATING DISORDERS ARE MORE UNDERCOVER THAN THEY ARE AMONG WOMEN OF THE SAME AGE SAYS A RECENT MALE GRADUATE OF THE UNIVERSITY OF NORTH CAROLINA WHO DOESN'T WANT TO BE NAMED THE SLIM 22YEAROLD 6 FEET 172 POUNDS SAYS HE AND SEVERAL COLLEGE FRIENDS FOR YEARS WOULD BINGE AND THEN INDUCE VOMITING BUT THEY NEVER TALKED ABOUT IT EVEN AMONG THEMSELVES THEY JUST DID IT MEN ARE GOING TO BE REAL EVASIVE ABOUT IT MORE SO THAN WOMEN HE SAYS IN COLLEGE THE YOUNG MAN WHO HAD BEEN FAT AS A CHILD FELT EXTREME PRESSURE TO SHED WEIGHT HERE AT CAROLINA PEOPLE LOOK GREAT IT'S A REAL JOCK SCHOOL HE SAYS OFTEN AFTER DINNER HE AND HIS HOUSEMATES WOULD TAKE TURNS GOING TO THE BATHROOM TO VOMIT BUT HE IS RELUCTANT TO APPLY THE TERM BULIMIA TO HIS BEHAVIOR I FEEL GREAT AND LOOK GOOD AND HAVE A LOT OF ENERGY I THINK PEOPLE ARE A LITTLE TOO QUICK TO SLAP A TERM LIKE DISORDER' ON BEHAVIOR THAT'S DIFFERENT FROM THEIRS HE SAYS I HONESTLY THINK THERE ARE CERTAIN TIMES THAT IF YOU EAT AND DRINK A LOT YOUR STOMACH SAYS I DON'T WANT THIS IN HERE I'M GOING TO GET RID OF IT WHILE MANY WOMEN SEE A WAIFLIKE THINNESS AS THEIR IDEAL MANY MEN FEEL THEY MUST ACHIEVE A LEAN MUSCULAR ATHLETIC BODY COMPULSIVE EXERCISE AND STARVATION CAN BE MEANS TO THAT END RALPH WILPS'S ORDEAL WITH BULIMIA AND ANOREXIA BEGAN WHEN HE WAS NEARING 30 AND WAS ANXIOUS ABOUT ESTABLISHING HIMSELF AS A PSYCHOLOGIST AND ABOUT A MARRIAGE ON THE ROCKS WHAT HE STRIVED FOR WAS A LEAN BODY A VSHAPED TORSO AND MUSCLE DEFINITION WITH MEN IT'S NOT WEIGHT PER SE AS MUCH AS IT'S BODY SHAPE AND HARDNESS SAYS DR WILPS WHO EXERCISED TWO HOURS A DAY IN AN EFFORT TO CHANGE HIS SOFT WEAK AND PEARSHAPED FIGURE HE SUCCEEDED IN BECOMING BONETHIN STILL DISSATISFIED WITH HIS BODY AND HUNG OVER FROM THE FATIGUE AND DEPRESSION HIS BINGEING AND EXERCISING BROUGHT ON HE NEVER ACTIVELY SOUGHT HELP FOR COMPULSIVE FASTING AND BINGEING AND FANATICAL EXERCISING BECAUSE ALL OF US IN THE THERAPEUTIC COMMUNITY WERE BLIND TO FOODRELATED DISORDERS IN MEN HE LOOKED FOR RESEARCH ON EATING DISORDERS IN MEN AND FOUND NOTHING ULTIMATELY BY TRIAL AND ERROR HE MANAGED TO HELP HIMSELF TOWARD RECOVERY DR WILPS AND SOME OF HIS PATIENTS FORMED A SELFHELP GROUP IN PITTSBURGH FOR MEN ONLY SEE RELATED LETTER LETTERS TO THE EDITOR DYING OF ANOREXIA HE DREW MOSTLY SCORN WSJ DEC 3 1993 9310180069 YY93 MM12 9312030094 931018 ECONOMY PRICE DATA SHOW A SLOWER RISE IN MEDICAL COSTS ANNUAL RATE OF INCREASE FELL TO 42 IN 3RD QUARTER MANAGED CARE IS CITED BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HEALTHCARE COST SPIRAL MAY BE UNWINDING EVEN BEFORE PRESIDENT CLINTON DELIVERS THE FINE PRINT ON HIS HEALTH INITIATIVE TO CONGRESS THE LATEST CONSUMER PRICE REPORT FROM THE LABOR DEPARTMENT SHOWS THAT MEDICAL PRICES CLIMBED AT A MODEST 42 ANNUAL RATE OVER THE PAST THREE MONTHS THAT'S DOWN FROM 7 IN THE SECOND QUARTER 56 IN THE FIRST AND 62 IN THE FOURTH QUARTER OF LAST YEAR THE NASCENT TREND ANALYSTS SAY REFLECTS A COMBINATION OF THINGS OVERALL INFLATION IS DOWN EMPLOYERS AND SOME STATE GOVERNMENTS ARE INCREASINGLY AGGRESSIVE IN THEIR CAMPAIGNS TO RESTRAIN HEALTH COSTS AND THEN THERE'S WHAT PRINCETON ECONOMIST UWE REINHARDT DUBS THE HILLARY FACTOR THE RELUCTANCE OF SOME ELEMENTS OF THE HEALTH INDUSTRY TO RAISE PRICES IN THE MIDST OF A PUBLIC DEBATE OVER HEALTH CARE IT'S FAR TOO SOON TO DECLARE THE BATTLE AGAINST RISING HEALTHCARE COSTS OVER MEDICALCARE COSTS STILL ROSE THREE TIMES AS FAST AS THE OVERALL CONSUMER PRICE INDEX IN THE THIRD QUARTER IN SEPTEMBER MEDICALCARE PRICES ROSE 04 WHILE THE OVERALL CONSUMER PRICE INDEX DIDN'T RISE AT ALL LARGELY BECAUSE OF A DROP IN TOBACCO PRICES AND A SEASONAL QUIRK IN APPAREL PRICES A BARRAGE OF OTHER ECONOMIC INDICATORS RELEASED FRIDAY PAINT A PICTURE OF A MODERATELY GROWING ECONOMY WITH VERY LOW INFLATIONARY PRESSUR AMERICA ECONOMIST STEVEN WOOD SAID THE CLINTON ADMINISTRATION AND PRIVATE FORECASTERS SAY THE NEW DATA STRENGTHEN THE CASE THAT THE ECONOMY GREW AT ABOUT A 3 PACE IN THE THIRD QUARTER THE UNIVERSITY OF MICHIGAN'S CONSUMER CONFIDENCE INDEX TURNED UP IN EARLY OCTOBER INDUSTRIAL PRODUCTION ROSE 02 IN SEPTEMBER AS MANUFACTURING OUTPUT REBOUNDED THE TRADE DEFICIT SHRANK A BIT IN AUGUST EXPORTS CLIMBED NEARLY 3 INVENTORIES GREW 02 IN AUGUST BUT REMAIN LEAN MANAGEMENT THE ENCOURAGING PRICE DATA PROVIDE THE FRESHEST EVIDENCE THAT HEALTH COST INCREASES MAY BE MODERATING XEROX CORP FOR INSTANCE PROJECTS THAT THE HEALTHCARE TAB FOR ITS 55000 US WORKERS WILL RISE ABOUT 5 IN 1994 AFTER INCREASING ABOUT 9 THIS YEAR WE'RE STARTING TO SEE THE BENEFITS OF THE TIGHT MANAGEMENT WE'VE PUT IN PLACE OVER THE LAST FOUR YEARS SAYS BENEFITS DIRECTOR PAT NAZEMETZ THE PACE OF CORPORATE HEALTHCARE COST INCREASES HAS BEEN MODERATING SINCE 1990 SAYS JOHN ERB A PRINCIPAL AT THE BENEFITSCONSULTING FIRM FOSTER HIGGINS CORPORATE COSTS ROSE BY 105 IN 1992 AND HE PREDICTS INCREASES OF 8 TO 9 IN 1993 AND 6 TO 7 IN 1994 IT'S REALLY HAPPENING BECAUSE MORE AND MORE EMPLOYEES ARE ENROLLING IN MANAGEDCARE PROGRAMS HE SAYS MANAGEDCARE PROGRAMS SEEK TO CONTROL COSTS BY AMONG OTHER THINGS FUNNELING PATIENTS TO DOCTORS AND HOSPITALS THAT HAVE AGREED TO PROVIDE DISCOUNTS OR TO PROVIDE CARE FOR A PRENEGOTIATED FLAT FEE IF THE PACE OF HEALTHCOST INCREASES IS TRULY SLOWING THEN MR CLINTON'S PROPOSAL TO IMPOSE STRICT LEGAL LIMITS ON PRIVATESECTOR PREMIUM INCREASES MAY NOT BE AS OUTLANDISH AS SOME CRITICS SUGGEST THE GROWTH OF TOTAL HEALTHCARE COSTS REFLECTS BOTH PRICE INCREASES AND INCREASED USE BUT MR ERB SAYS MOST OF THE IMPROVEMENT APPEARS TO BE ON THE PRICE SIDE MANAGEDCARE PLANS ARE RESTRAINING HOSPITALS DOCTORS AND OTHERS FROM RAISING PRICES AND THE REASONABLE AND CUSTOMARY FEES THAT FEEFORSERVICE INSURANCE PLANS PAY HAVEN'T GONE UP IN TWO YEARS HE SAYS THE DISINFLATIONARY TREND THROUGHOUT THE ECONOMY IS A CONTRIBUTING FACTOR AS THE OVERALL INFLATION RATE COMES DOWN THAT AFFECTS MEDICAL PRICES AS WELL SAYS DAVID WYSS ECONOMIST AT DRI/MCGRAWHILL THE LEXINGTON MASS CONSULTING FIRM YOU DON'T HAVE TO RAISE NURSES' SALARIES AS MUCH OVER THE PAST YEAR MEDICALCARE PRICES HAVE RISEN BY 57 THREE PERCENTAGE POINTS ABOVE THE 27 INCREASE IN OVERALL CONSUMER PRICES BUT IN 1992 MEDICAL PRICES ROSE NEARLY FOUR PERCENTAGE POINTS FASTER THAN THE CONSUMER PRICE INDEX IN 1991 THE GAP WAS NEARLY FIVE POINTS IT'S IMPOSSIBLE TO QUANTIFY THE EXTENT TO WHICH THE HEALTHCARE INDUSTRY MAY BE PUTTING OFF PRICE INCREASES TO AVOID ANTAGONIZING POLITICIANS THERE MAY BE SOME ANTICIPATORY BEHAVIOR GOING ON SAYS LAURA TYSON CHAIRWOMAN OF MR CLINTON'S COUNCIL OF ECONOMIC ADVISERS IT'S HARD TO KNOW IF THE JAWBONING IS HAVING ANY EFFECT SEVERAL ANALYSTS SAY THAT THE PRESCRIPTIONDRUG INDUSTRY OBVIOUSLY REACTED TO THE THREAT OF PRICE CONTROLS EARLIER THIS YEAR AFTER INCREASING BY MORE THAN 9 IN 1990 AND 1991 AND BY NEARLY 6 IN 1992 DRUG PRICES HAVE INCREASED ONLY 38 IN THE PAST 12 MONTHS THE LABOR DEPARTMENT SAYS THE UNUSUAL DECLINE IN DRUG PRICES IN THE SPRING IS HISTORY THOUGH THEY INCREASED AT A 57 PACE IN THE THIRD QUARTER IN A MEETING WITH REPORTERS MS TYSON SAID THE LATEST ECONOMIC STATISTICS SUGGEST A PATH OF LOW INFLATION LOW INTEREST RATES AND STEADY RECOVERY HERE'S A SUMMARY OF DATA RELEASED FRIDAY THE UNIVERSITY OF MICHIGAN'S CONSUMER SENTIMENT INDEX ROSE TO 831 IN EARLY OCTOBER FROM 779 IN SEPTEMBER ACCORDING TO SUBSCRIBERS CONSUMER VIEWS TOWARD BOTH THE PRESENT AND THE FUTURE STATE OF THE ECONOMY IMPROVED THE 02 INCREASE IN INDUSTRIAL PRODUCTION FOLLOWING A 01 RISE IN AUGUST LARGELY REFLECTS AN UPTURN IN AUTO PRODUCTION FACTORY OUTPUT WAS UP 04 UTILITY OUTPUT FELL 31 AS THE WEATHER RETURNED TO NORMAL US INDUSTRY OPERATED AT 816 OF CAPACITY IN SEPTEMBER THE SAME AS IN AUGUST CONSUMER PRICES EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS ROSE BY 01 IN SEPTEMBER SO FAR THIS YEAR THIS MEASURE IS UP AT A 3 RATE EVEN BETTER THAN THE 33 INCREASE IN 1992 WHICH WAS THE SMALLEST ADVANCE IN 20 YEARS GASOLINE PRICES FELL 15 IN SEPTEMBER AND ARE NOW 20 BELOW THEIR NOVEMBER 1990 PEAK NEXT MONTH'S FIGURES WILL REFLECT THE INCREASE IN FEDERAL TAXES THAT TOOK EFFECT OCT 1 AVERAGE WEEKLY EARNINGS OF PRODUCTION AND OTHER NONSUPERVISORY WORKERS ON PRIVATE PAYROLLS FELL 09 IN SEPTEMBER AFTER RISING 08 THE MONTH EARLIER THE LENGTH OF AVERAGE WORKWEEK DECLINED IN SEPTEMBER AFTER RISING IN AUGUST OVER THE PAST YEAR INFLATIONADJUSTED WEEKLY EARNINGS HAVE INCREASED ONLY 04 THE MERCHANDISE TRADE DEFICIT SHRANK IN AUGUST TO 971 BILLION FROM 1042 BILLION IN JULY THE COMMERCE DEPARTMENT SAID EXPORTS ROSE 3 TO 3711 BILLION EXPORTS OF CAPITAL GOODS PARTICULARLY AIRCRAFT AND PARTS WERE PARTICULARLY STRONG IMPORTS ROSE 08 TO 4752 BILLION THE TRADE DEFICIT FOR THE FIRST EIGHT MONTHS OF 1993 WAS 7678 BILLION COMPARED WITH 5269 BILLION A YEAR EARLIER A REFLECTION OF THE ECONOMIC WOES IN EUROPE AND JAPAN TOTAL BUSINESS INVENTORIES GREW BY 02 IN AUGUST TO 86566 BILLION AFTER DECLINING 01 THE MONTH BEFORE THE COMMERCE DEPARTMENT SAID INVENTORIES AMOUNTED TO A LEAN 146 MONTHS' SALES IN AUGUST ABOUT WHERE THEY'VE BEEN FOR MOST OF THE YEAR ECONOMISTS EXPECT BUSINESSES TO REBUILD INVENTORIES IN THE CURRENT QUARTER ADDING TO OVERALL ECONOMIC GROWTH ALL THE FIGURES ARE ADJUSTED TO REMOVE USUAL SEASONAL FLUCTUATIONS HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR SEPTEMBER SEPTEMBER CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM SEPTEMBER 1992 WERE HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN SEPTEMBER THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR SEPTEMBER STOOD AT 1110 OF THE 1987 AVERAGE HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN AUGUST THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED SEE RELATED LETTER LETTERS TO THE EDITOR DRUGPRICE INFLATION WSJ DEC 2 1993 9310180046 YY93 MM12 9312030080 931027 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WITH COMMUNISTS GONE SOME AMERICANS AND THEIR POLITICAL LEADERS HAVE FOUND NEW ENEMIES THEY ARE IMMIGRANTS AND THE ATTACKS ARE STARTING TO GET UGLY FROM THE HALLS OF CONGRESS TO THE STATEHOUSE OF CALIFORNIA IT'S BECOMING POPULAR TO BLAME IMMIGRANTS LEGAL AND ILLEGAL ALIKE FOR AMERICANS' ECONOMIC INSECURITIES THIS IS HAPPENING PARTLY BECAUSE THE FLOW OF IMMIGRANTS IS CAUSING REAL PROBLEMS THE NUMBER OF ILLEGAL IMMIGRANTS PROBABLY HAS RISEN TO FOUR MILLION FROM THREE MILLION OVER THE LAST DECADE AND LEGAL IMMIGRANTS ARE SOAKING UP MORE SOCIAL SERVICES BUT THERE ALSO IS MOUNTING EVIDENCE THAT POLITICANS ARE DEMONIZING ALIENS TO SCORE CHEAP POLITICAL POINTS IN DOING SO THEY ARE PLAYING WITH FIRE ONE NEED ONLY LOOK AT THE UGLY ANTIIMMIGRANT HATRED SPREADING ACROSS EUROPE TO GET SOME IDEA OF WHERE NATIVISM CAN LEAD THE FEAR I HAVE IS THIS KIND OF DEEPSEATED JOB ANXIETY MAY LEAD TO AN ISOLATIONISM A JINGOISM A NATIVISM OF A SORT THAT CROPS UP IN AMERICA EVERY 30 OR 40 OR 50 YEARS LABOR SECRETARY ROBERT REICH SAID A FEW DAYS AGO IF WE DID THAT THOUGH WE'D BE SHOOTING OURSELVES IN THE FOOT ECONOMICALLY AND POLITICALLY WE WOULD ALSO BE INVITING ALL KINDS OF DISSENSION AND DIVISIVENESS IN THE UNITED STATES A HINT OF THAT DIVISIVENESS WAS VISIBLE IN A DISTASTEFUL DEBATE IN THE HOUSE OF REPRESENTATIVES EARLIER THIS MONTH THE ISSUE WAS HOW TO EXTEND JOBLESS BENEFITS FOR THE LONGTERM UNEMPLOYED IN A MOVE THAT SEEMED ALMOST DESIGNED TO INCITE IMMIGRANTBASHING HOUSE LEADERS PROPOSED FINANCING THE JOBLESS BENEFITS IN PART BY MAKING AGED BLIND OR DISABLED LEGAL IMMIGRANTS WAIT FIVE YEARS INSTEAD OF THE CURRENT THREE TO QUALIFY FOR BENEFITS FROM AN ANTIPOVERTY PROGRAM THAT OPENED THE WAY FOR MANY A LAWMAKER TO FIRE EASY SHOTS AT WELFARE BENEFITS FOR ALIENS THE DEBATE REALLY TURNED NASTY WHEN REP RICHARD SANTORUM A PENNSYLVANIA REPUBLICAN TOOK THE HOUSE FLOOR AND DECLARED THAT HIS FATHER AND GRANDFATHER EMIGRATED TO AMERICA NOT FOR WELFARE BENEFITS WE CAME HERE FOR OPPORTUNITY FOR A CHANCE TO SUCCEED THAT IMPLIED SLAP AT TODAY'S IMMIGRANTS WHO TEND TO BE LATINO AND ASIAN RATHER THAN EUROPEAN BROUGHT AN ANGRY RETORT FROM REP ROBERT MATSUI A CALIFORNIA DEMOCRAT WHO SPENT THREE YEARS IN AN INTERNMENT CAMP FOR JAPANESEAMERICANS DURING WORLD WAR II ADDRESSING REP SANTORUM REP MATSUI SAID YOU KNOW THE GENTLEMAN HIMSELF BLENDS IN PRETTY WELL NO ONE WOULD KNOW WHETHER HE IS FIFTH SECOND OR 15TH GENERATION AMERICAN BUT THERE ARE OTHERS OF US WHO COULD BE A FIFTH OR SIXTH OR 15TH GENERATION AMERICAN BUT WE SOMETIMES SUFFER WHEN THAT KIND OF RHETORIC OCCURS IN THE END THE JOBLESSBENEFITS PLAN PASSED AND FULLY LEGAL IMMIGRANTS WILL HAVE TO WAIT LONGER FOR SOCIAL BENEFITS NOWHERE IS THE DEBATE MORE HEATED THAN IN CALIFORNIA WHERE A PAINFUL RECESSION HAS MADE ILLEGAL ALIENS A PARTICULARLY CONVENIENT TARGET REPUBLICAN GOV PETE WILSON IS SCORING BIG POLITICAL POINTS BY HAMMERING AWAY AT THE ISSUE THE STATE'S TWO DEMOCRATIC SENATORS DIANNE FEINSTEIN AND BARBARA BOXER HAVE CHURNED OUT IMMIGRATIONCONTROL MEASURES OF THEIR OWN THE CENSUS BUREAU ESTIMATES THAT CALIFORNIA IS HOME TO MORE THAN TWO MILLION ILLEGAL IMMIGRANTS AS WELL AS OF THOUSANDS OF NEWLY LEGALIZED RESIDENTS UNDOUBTEDLY THOSE NEWCOMERS STRAIN THE SYSTEM GOV WILSON ASSERTS THAT IT COSTS MORE THAN 1 BILLION A YEAR TO EDUCATE ILLEGAL ALIENS AND MORE THAN 750000 A YEAR TO GIVE THEM EMERGENCY HEALTH CARE IN RESPONSE HE HAS JUST SIGNED SOME REASONABLE NEW LAWS THAT WOULD FOR EXAMPLE REQUIRE DRIVER'S LICENSES RECIPIENTS TO SHOW THEY ARE LEGAL RESIDENTS AND RESTRICT JOB PLACEMENT AND TRAINING SERVICES TO LEGAL RESIDENTS HE ALSO SUPPORTS WHITE HOUSE EFFORTS TO CURB THE SMUGGLING OF ILLEGAL ALIENS BUT THE GOVERNOR ALSO IS CLAMORING FOR STEPS SURE TO STIR NATIVIST PASSIONS HE WANTS CONGRESS TO MAKE IT POSSIBLE TO DENY ILLEGAL IMMIGRANTS ACCESS TO HEALTH BENEFITS AND PUBLIC SCHOOLS HE ALSO WANTS TO DENY CITIZENSHIP TO USBORN CHILDREN OF ILLEGAL IMMIGRANTS ABOVE ALL HE WANTS 14 BILLION IN FEDERAL MONEY TO PAY FOR SERVICES HE CLAIMS CALIFORNIA MUST PROVIDE BECAUSE OF NATIONAL POLICIES THAT ARGUMENT THOUGH CONVENIENTLY IGNORES THE CONTRIBUTIONS ALIENS HAVE MADE TO PUMPING UP CALIFORNIA'S ECONOMY THOSE CONTRIBUTIONS EASY TO ACCEPT SILENTLY IN GOOD TIMES ARE EASY TO FORGET IN HARDER TIMES A MORE DISPASSIONATE ANALYSIS COMES FROM ANOTHER CALIFORNIA REPUBLICAN LOS ANGELES MAYOR RICHARD RIORDAN IF YOU REMOVE EVERY ILLEGAL ALIEN TOMORROW YOU'VE REALLY CAUSED A DEPRESSION HE SAYS THE GOAL SHOULD BE TO BETTER CONTROL THE FLOW OF ILLEGAL ALIENS APPROVING THE NEW FREETRADE AGREEMENT WITH MEXICO MIGHT HELP BY KEEPING MORE MEXICANS WORKING AT HOME BUT THE REAL CHALLENGE IS TO HANDLE THE PROBLEM WITHOUT FOMENTING UGLINESS AT HOME SEE RELATED LETTER LETTERS TO THE EDITOR NATIVISM CHARGE UNFAIR WSJ DEC 3 1993 SEE RELATED LETTER LETTERS TO THE EDITOR THE CRISIS OF ILLEGAL IMMIGRATION WSJ DEC 6 1993 9310270152 YY93 MM12 9312030028 931006 HEWLETT SUED IN CALIFORNIA OVER WORKER CONTRACTS PALO ALTO CALIF A GROUP LOBBYING FOR STRICTER IMMIGRATION LAWS IN CALIFORNIA SUED HEWLETTPACKARD CO ALLEGING THE CONCERN VIOLATED STATE WORKERPROTECTION LAWS IN IMPORTING CONTRACT COMPUTER PROGRAMMERS FROM INDIA CALIFORNIANS FOR POPULATION STABILIZATION A NONPROFIT ORGANIZATION BASED IN SACRAMENTO FILED THE SUIT IN CALIFORNIA SUPERIOR COURT IN SANTA CLARA IT ALSO NAMES TATA SONS LTD AN INDIAN COMPANY WITH OPERATIONS IN SANTA CLARA THAT PROVIDES CONTRACT PROGRAMMERS TO HP AND OTHER COMPANIES USING A CALIFORNIA LAW THAT ALLOWS PEOPLE TO SUE ON BEHALF OF THE GENERAL PUBLIC THE ANTIIMMIGRATION GROUP'S SUIT ALLEGES THAT TATA'S CONTRACTS WITH INDIAN PROGRAMMERS WORKING IN THE UNITED STATES CONTAIN SEVERAL ILLEGAL PROVISIONS INCLUDING PAYING LESS THAN MINIMUM WAGE DISCOURAGING THEM FROM BECOMING PREGNANT AND REQUIRING THEM TO SHARE HOUSING WITH OTHER PROGRAMMERS TATA EXECUTIVES COULD NOT BE REACHED FOR COMMENT BUT HP REJECTED THE ALLEGATIONS THE SUIT IS GROUNDLESS AND WE'RE CONFIDENT THE COURT WILL AGREE AN HP SPOKESWOMAN SAID SEE RELATED LETTER LETTERS TO THE EDITOR A STABILIZED POPULATION WSJ DEC 3 1993 9310060049 YY93 MM12 9312030010 931021 INTERNATIONAL MEXICAN SMALLBUSINESS OWNERS SAY STIMULUS PLAN IGNORES THEIR PROBLEMS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY SMALL BUSINESSES IN MEXICO ARE FINDING LITTLE TO CHEER ABOUT IN THE NEW MEXICAN ECONOMIC PLAN UNVEILED THIS MONTH THE PACTO AS THE WAGE AND STIMULUS PLAN IS KNOWN HERE WAS HERALDED BY BIGBUSINESS LEADERS AS THE MOST GENEROUS EVER BY PRESIDENT CARLOS SALINAS DE GORTARI LABOR LEADERS AGREED BUT SMALLBUSINESS OWNERS SAY THE PLAN INTENSIFIES THEIR STRUGGLE FOR SURVIVAL BECAUSE IT DOES NOTHING TO MITIGATE HIGH INTEREST RATES AN ARCHAIC LEGAL SYSTEM AND FEDERAL AGENCIES INFUSED WITH PETTY CORRUPTION PROBLEMS THAT ARE MORE ACUTE FOR SMALL BUSINESSES THAN FOR BIG CORPORATIONS FOR A SMALL OR MEDIUMSIZE COMPANY MEXICO IS A VERY DIFFERENT PLACE THAN IT IS FOR VITRO OR CEMEX SAYS EUGENIO MANZANO COHEAD OF PAPER IMPORTER GRUPO POCHTECA REFERRING TO MEXICO'S GIANT GLASS AND CEMENT COMPANIES MR MANZANO SAYS BIG COMPANIES HISTORICALLY LOW CREDIT RATES ABROAD THAT HIS 14 MILLIONAYEAR BUSINESS COULD NEVER HOPE TO GET ENTREPRENEURS ARGUE THAT THE PROBLEMS THEY FACE ARE BAD FOR THE WHOLE NATION BECAUSE MEXICO SPLIT SO CLEARLY BETWEEN THE HAVES AND HAVENOTS NEEDS TO DEVELOP A MIDDLE CLASS OF SMALLBUSINESS PEOPLE TO MAINTAIN ECONOMIC AND POLITICAL STABILITY THE ONE THING MISSING IN THE PACTO IS AN INCENTIVE FOR SMALL AND MEDIUMSIZE COMPANIES THAT CAN'T BORROW IN DOLLARS AT LOW RATES OUTSIDE THE COUNTRY SAYS JORGE SUAREZVELEZ MANAGING DIRECTOR IN CHARGE OF THE NEW YORK OFFICE OF AFIN A MEXICAN BROKER THAT CAN BE VERY DANGEROUS TO MEXICO'S ECONOMIC DEVELOPMENT UNDER MR SALINAS'S PLAN FARMERS WILL GET DIRECT SUBSIDIES OF 375 BILLION MEXICO'S LOWESTPAID WORKERS WON AN 11 INCREASE IN DISPOSABLE INCOME THROUGH TAX CREDITS BIG BUSINESSES WON TAX CUTS TOO IN EXCHANGE FOR ALL THAT THOUGH THE GOVERNMENT AIMS TO SQUEEZE THE ECONOMY ENOUGH TO FURTHER CUT INFLATION BY FOUR PERCENTAGE POINTS TO 5 BY 1994 THE RESULT ANALYSTS BELIEVE WILL BE A TIGHT MONETARY POLICY MEANING ANOTHER YEAR OF HIGH CREDIT COSTS FOR SMALL AND MIDSIZE BUSINESSES THAT CAN'T BORROW ABROAD PRIVATE BANKS ARE THE BIG PROBLEM COMPLAINS ENRIQUE GABAYET O PRESIDENT OF UNIDAD TEXTILE PUENTE A PRODUCER OF HIGHQUALITY FABRICS HERE MR GABAYET IS A MODEL OF MEXICO'S MICROECONOMIC REFORM AS MEXICO BEGAN TO DROP TARIFFS ON TEXTILES IN 1988 MR GABAYET SUCCESSFULLY SHIFTED FROM GARDENVARIETY TEXTILES TO HIGHMARGIN HIGHQUALITY JACQUARD AND TAPESTRY FABRICS BUT HIGH FINANCING COSTS MAKE IT HARD FOR HIM TO COMPETE WITH US WEAVERS LAST YEAR MR GABAYET RECEIVED A 750000 FINANCING PACKAGE FROM A GOVERNMENT DEVELOPMENT BANK KNOWN AS NAFINSA WHICH PROVIDES RELATIVELY LOWCOST FUNDS TO SMALL AND MIDSIZE BUSINESSES HE PAYS NAFINSA 194 INTEREST FOR PART OF THE LOAN THE REST IS FROM PRIVATE BANKS SUCH AS BANCOMER WHICH CHARGES HIM 2818 12 PERCENTAGE POINTS ABOVE ITS COST OF FUNDS HOW CAN I COMPETE WHEN AMERICAN BANKS ARE LENDING MONEY AT 8 HE ASKS NOW MR GABAYET HAS A CHANCE TO EXPAND HIS BUSINESS PROVIDING A FURNITURE MAKER IN GUADALAJARA WITH RICHLY COLORED TAPESTRY FABRICS HE NEEDS A 1 MILLION LOAN TO BUY ITALIAN LOOMS BUT HE DREADS HAVING TO DEAL WITH PRIVATE BANKS AGAIN WE HAVE THE KNOWHOW HE SAYS MY BIGGEST CHALLENGE IS GETTING CREDIT AND ABSORBING ITS COST HE REFLECTS IF WE DON'T ALLOW MIDSIZE BUSINESSES TO EXPAND WE WON'T HAVE POPULAR CAPITALISM HERE IN MEXICO SITTING IN HIS PLANT IN THE SOUTHEASTERN CORNER OF MEXICO CITY ARMANDO SANTACRUZ RUNS HIS FINGERS OVER HIS CALCULATOR MR SANTACRUZ COFOUNDER OF GRUPO POCHTECA WITH MR MANZANO SAYS IN THE STATES A 1 MILLION LOAN MIGHT COST US 8765 IN INTEREST A MONTH HERE WE HAVE TO PAY 23000 A MONTH THAT'S THREE TIMES THE COST THERE IS NO WAY WE CAN BE THREE TIMES MORE PRODUCTIVE THAN A GUY IN THE STATES WITH OUR CAPITAL RECENTLY A BANK ASKED THE PARTNERS FOR THEIR HOUSES AS COLLATERAL FOR AN ORDINARY BUSINESS LOAN ANOTHER BANK ASKED THE PARTNERS TO SET ASIDE 15 MILLION IN PAPER STOCK IN A BONDED WAREHOUSE AS COLLATERAL FOR A 700000 LOAN NO MATTER WHAT YOU DO WITH THE PACTO UNLESS GOVERNMENT FINDS A WAY OF SOLVING THE INEFFICIENCIES OF THE FINANCIAL SYSTEM SMALL AND MEDIUMSIZE BUSINESSES WON'T BE ABLE TO GROW MR MANZANO SAYS TO BORROW FROM A BANK TODAY HE MUST PAY INTEREST RATES OF 28 TO 31 MESSRS MANZANO AND SANTACRUZ GRADUATED FROM STANFORD AND HARVARD BUSINESS SCHOOLS RESPECTIVELY AND SAY THEY WANT TO RUN THEIR BUSINESS ACCORDING TO FIRSTWORLD MODELS OF EFFICIENCY BUT THEY AND OTHER SMALLBUSINESS OWNERS ALSO LAMENT THAT THEY LACK THE POLITICAL CLOUT THAT BIG COMPANIES USE TO SKIRT PROBLEMS IN THE COURTS OR IN DEALINGS WITH CORRUPT BUREAUCRATS GRUPO POCHTECA FOR INSTANCE RECEIVED 19 VISITS FROM MEXICAN SOCIAL SECURITY AGENTS DEMANDING MORE MONEY MR SANTACRUZ SAYS HE WROTE 20 LETTERS TRYING TO CLARIFY THE ISSUE POLLUTIONCONTROL AND HEALTH INSPECTORS STALLED UNTIL THEY WERE PAID TO EXPEDITE THE PERMIT PROCESS THE PARTNERS SAY POWER COMPANY AND TELEFONOS DE MEXICO LINEMEN MUST BE ROUTINELY BRIBED TO KEEP UP BASIC SERVICES THE WORST PART ABOUT BRIBES IS THAT THEY AREN'T TAX DEDUCTIBLE MR SANTACRUZ SAYS WITH A LAUGH SEE RELATED LETTER LETTERS TO THE EDITOR A LAND OF PROMISE FOR BUSINESS VENTURES WSJ DEC 3 1993 9310210159 YY93 MM12 9312030067 930927 REVIEW & OUTLOOK EDITORIAL BUREAUCRATIC KUDZU IN A SMALL PATCH OF WHAT WAS ONCE A GARBAGE HEAP BETWEEN TWO TENEMENTS COMMUNITY GARDENERS ON NEW YORK'S UPPER WEST SIDE ARE DISCOVERING THAT NO WEED EXISTS AS DEEPROOTED AND INVASIVE AS A BUNCH OF BUREAUCRATS IN CITY HALL ANYONE WONDERING WHETHER THE CITY HAS A SANE LONGRANGE HOUSING POLICY WILL ONLY WONDER SOME MORE AFTER A VISIT TO THIS LEAFY ENCLAVE IN A MIXED NEIGHBORHOOD OF HOMELESS SHELTERS AND LUXURY COOPS HERE IN CAREFULLY TENDED BEDS ITALIAN LETTUCE STRING BEANS AND CUCUMBERS VIE FOR SPACE WITH TOMATOES BASIL CORN AND AN UNUSUAL PATCH OF PEANUTS A SCIENCE PROJECT SURVIVOR SLITHERS THROUGH THE RUDBECKIA SIX CATS LIVE IN PAINTED BOXES NEAR A RARE BIRCH AND A WONDROUS LILAC BUSH ON A RECENT AFTERNOON SENIOR CITIZENS SCHMOOZED ON PARK BENCHES WHILE A TEENAGE VOLUNTEER GROUP BARBECUED UNDER A HUGE WILLOW COMPOST HEAPS STEAMED AWAY NEAR A COLOSSAL PUMPKIN EVERYTHING THAT GROWS HERE IN THIS GARDENING PARK WAS PLANTED OVER MORE THAN A DECADE AND WITHOUT A PENNY OF CITY MONEY BY NEIGHBORHOOD RESIDENTS MANY OF THEM LOWINCOME LATINOS AND AFROAMERICANS OF ALL AGES ORGANIZED BY AN ALTERNATIVE EDUCATIONAL GROUP CALLED DOME FOR DEVELOPMENT OF OPPORTUNITIES THROUGH MEANINGFUL EDUCATION DROPOUTS CLEANED UP THE DRUGINFESTED SITE AND RECLAIMED IT FOR CIVILIZED USE BUT BEFORE THE LAST PETAL FALLS THIS SEASON THE ONLY DIGGER INSIDE THE FLORIBUNDANT 9000 SQUARE FOOT SITE MAY BE A GROANING BACKHOE FOR ABOUT AS LONG AS THE DOME GARDEN WAS GROWING A 4 MILLION HUD GRANT WAS GATHERING MOSS IN THE OFFICES OF THE NEW YORK CITY HOUSING AUTHORITY NOW AFTER SOME 10 YEARS THE AGENCY SAYS THAT IT MUST BREAK GROUND BY NOVEMBER 30 OR LOSE THE GRANT DESPITE THE UNANIMOUS PROTEST OF COMMUNITY GROUPS THE AGENCY PLANS TO RIP UP THE GARDEN PARK FOR WHAT IT DESCRIBES AS A LOWINCOME HOUSING PROJECT THOUGH MANY FEAR MORE HOMELESS ARRIVING IN A NEIGHBORHOOD THAT HAS WELCOMED MORE THAN ITS SHARE THE AGENCY CLAIMS THERE IS NO OTHER SITE IN ALL OF MANHATTAN THAT MEETS HUD'S COMPLEX REQUIREMENTS FOR NEW HOUSING IN ALL OF MANHATTAN WHY NOT USE THE HUD MILLIONS TO REHAB SOME OF THE JUNKY TENEMENTS INSTEAD IS JUST ONE OF THE QUESTIONS ASKED BY THE APPALLED GARDENERS WHO LIVE IN SOME OF THEM THE ONLY THING HOLDING UP TEST BORINGS IS APPROVAL BY THE BOARD OF EDUCATION THE BOARD OF EDUCATION THAT'S RIGHT THE CITY PLANNING COMMISSION IN APPROVING THE PROJECT STIPULATED THAT THE HOUSING AGENCY MUST MOVE PART OF THE GARDEN AND THE EASIEST SPOT IS RIGHT ACROSS THE STREET INTO THE PLAYGROUND OF AN ANNOYED LOCAL HIGH SCHOOL WHICH WANTS THE TOMATOES THE CATS AND THE SNAKE TO STAY WHERE THEY ARE TO PLACATE OUTRAGED PARENTS THE BOARD MAY OFFER SOME AMENITIES TO THE SCHOOL AND MOVE THE GARDEN AT A COST ESTIMATED AT BETWEEN 150000 AND 250000 AS ONE LOCAL RESIDENT SAID THIS IS BANANAS ONE LAST THOUGHT BEAR IN MIND THAT THIS IS THE CITY WHERE A RECENT FLAP OVER TRYING TO PRIVATIZE PARKING TICKET COLLECTION IS WIDELY THOUGHT TO HAVE SET BACK SEVERELY THE CAUSE OF LIBERATING NEW YORKERS FROM SUCH BRAINLESS BUREAUCRACIES SEE RELATED LETTER LETTERS TO THE EDITOR WHEN BACK YARDS ARE THREATENED WSJ DEC 3 1993 9309270046 YY93 MM12 9312020177 931202 INTERNATIONAL WESTERN GERMANY SHOWS INDICATION OF MILD RECOVERY BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT WESTERN GERMANY'S ECONOMY HINTED AT A HESITANT RECOVERY IN THE THIRDQUARTER AS INDUSTRIAL OUTPUT ROSE 07 FROM THE SECONDQUARTER A MILD RECOVERY IS UNDER WAY IT WON'T BE A STRAIGHTFORWARD RISE OUT OF RECESSION BUT ONE OF FITS AND STARTS AND OCCASSIONAL SETBACKS SAID THOMAS MAYER SENIOR ECONOMIST AT GOLDMAN SACHS & CO IN FRANKFURT INDEED INDUSTRIAL OUTPUT FELL A PRELIMINARY 04 IN OCTOBER FROM A REVISED SEPTEMBER READING ACCORDING TO SEASONALLY ADJUSTED GOVERNMENT STATISTICS AND OCTOBER OUTPUT FELL 38 FROM A YEAR EARLIER IN EXPLAINING THE REVISIONS THE GOVERNMENT'S STATISTICS OFFICE SAID THE PRELIMINARY 2 DROP IN SEPTEMBER PRODUCTION REPORTED A MONTH AGO WAS REVISED UPWARD BY MORE THAN EXPECTED TO SHOW UNCHANGED PRODUCTION FROM AUGUST WHICH SHOWED A SHARP INCREASE FROM JULY THE LATEST OUTPUT FIGURES WERE LARGELY IN LINE WITH ECONOMISTS' EXPECTATIONS THEY FORESEE A MILD IMPROVEMENT IN WESTERN GERMANY'S THIRDQUARTER GROSS DOMESTIC PRODUCT OF ABOUT 05 FROM THE PREVIOUS QUARTER DATA FOR GDP WHICH MEASURES THE OUTPUT OF ALL GOODS AND SERVICES IS EXPECTED TO BE ANNOUNCED TUESDAY BUT ANALYSTS ALSO EXPECT POSSIBLE SETBACKS IN THE FOURTH AND FIRST QUARTERS AND ONLY SLOW GROWTH LATER IN 1994 MOST FORECASTS FOR ALL OF 1994 CALL FOR WESTERN GERMAN GDP GROWTH OF BETWEEN 05 AND 1 AFTER AN EXPECTED 2 CONTRACTION IN 1993 THEY ALSO SAY THAT REVERSING THE JOBLESS TREND WILL REQUIRE MORE THAN JUST MARGINAL GROWTH THE INSTITUTE OF THE GERMAN ECONOMY AN INDUSTRYLINKED THINK TANK IN COLOGNE SAID THIS WEEK THAT 550000 WESTERN GERMAN INDUSTRIAL WORKERS WILL LOSE THEIR JOBS THIS YEAR FOLLOWED BY AN ADDITIONAL 430000 JOB CUTS IN 1994 IN EASTERN GERMANY SOME 32 MILLION INDUSTRIAL JOBS WERE LOST DURING THE RADICAL RESTRUCTURING OF THE FORMER SOCIALIST ECONOMY FROM 1989 THROUGH 1992 THE INSTITUTE ESTIMATED THAT 260000 JOBS COULD BE LOST THIS YEAR DESPITE EASTERN GERMANY'S GRADUAL ECONOMIC RECOVERY ECONOMISTS WARN THAT TOTAL GERMAN UNEMPLOYMENT CURRENTLY AT 35 MILLION COULD REACH FOUR MILLION NEXT YEAR OR NEARLY 10 OF THE WORK FORCE 9312020176 931202 SEC TURNS UP HEAT ON BROKERS' COMMISSIONS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS ESCALATING ITS PRESSURE ON SECURITIES FIRMS TO CHANGE BROKERS' COMPENSATION SAYING THAT THE CURRENT SYSTEM OF COMMISSIONS ENCOURAGES BROKERS TO CHEAT CUSTOMERS THE CAMPAIGN IS PART OF A NEW SEC CRACKDOWN ON BROKERS WHO CHEAT AND THE SUPERVISORS WHO LET THEM GET AWAY WITH IT THE BROKERAGE INDUSTRY IS SCHEDULED TO GET AN EARFUL ABOUT THE AGENCY'S PLANS TODAY AT THE ANNUAL CONVENTION OF THE SECURITIES INDUSTRY ASSOCIATION THIS COMMISSION WILL NOT TOLERATE THE PRESENCE OF ROGUE BROKERS IN OUR MARKETS SEC COMMISSIONER J CARTER BEESE JR SAYS IN REMARKS PREPARED FOR THE SIA CONVENTION IN BOCA RATON FLA IF YOU DON'T ELIMINATE THEM WE WILL AND THOSE WITH SUPERVISORY RESPONSIBILITY WILL BE HELD ACCOUNTABLE MR BEESE GOES ON TO DECLARE THAT COMPENSATION PRACTICES FOR BROKERS ARE RIGHT AT THE CENTER OF THIS ISSUE AND HE URGES BROKERAGE FIRMS TO CHANGE THE COMPENSATION SYSTEM BEFORE NEW LAWS ARE IMPOSED TO PROTECT THE PUBLIC FROM PERCEIVED ABUSES IN AN INTERVIEW MR BEESE SAID THE SEC'S INCREASED ATTENTION TO BROKERS' PRACTICES WILL COVER COLDCALLING OR SOLICITING INVESTMENTS FROM PEOPLE WHO AREN'T CLIENTS OF THE FIRM HE SAID THE STEPPEDUP INQUIRY APPLIES TO SALES OF ALL SECURITIES INCLUDING MUTUAL FUNDS MUTUAL FUND SALES WILL HAVE THE SAME SCRUTINY IF NOT MORE INTENSE SCRUTINY GIVEN THE NATURE OF THE MARKET TODAY MR BEESE SAID THE SEC IS CONCERNED THAT COMMISSIONS TYPICALLY A PERCENTAGE OF THE INVESTMENT DOLLARS THAT A BROKER BRINGS IN ENCOURAGE BROKERS TO SELL MORE AND MORE WITHOUT REGARD TO AN INVESTMENT'S SUITABILITY TO THE CLIENT COMPENSATION POLICIES THAT ENCOURAGE QUANTITY OVER QUALITY CREATE AN ETHICAL CANCER IN A FIRM MR BEESE SAYS IN HIS SPEECH THE STRONG LANGUAGE IN MR BEESE'S SPEECH INDICATES A HEIGHTENING OF THE SEC'S INTEREST IN THE COMPENSATION ISSUE SINCE ARTHUR LEVITT THE AGENCY'S CHAIRMAN FIRST MENTIONED IT SEVEN WEEKS AGO AT THE TIME MR LEVITT WAS ANNOUNCING THAT PRUDENTIAL SECURITIES INC HAD AGREED TO PAY MORE THAN 371 MILLION TO SETTLE COMPLAINTS ABOUT ITS BROKERS' IMPROPER SALES OF INTERESTS IN LIMITED PARTNERSHIPS PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA I AM CONCERNED THAT COMPENSATION IN THE SECURITIES INDUSTRY IS ALMOST EXCLUSIVELY QUANTITATIVE MR LEVITT SAID AT THE TIME THE PRUDENTIAL CASE WITH ALLEGATIONS THAT BROKERS IMPROPERLY PERSUADED INVESTORS TO BUY INTO POORLY PERFORMING PARTNERSHIPS IS AN EGREGIOUS EXAMPLE OF COMMISSIONDRIVEN ABUSES MR LEVITT SAID EARLIER THIS WEEK MR LEVITT AND SEC ENFORCEMENT DIRECTOR WILLIAM MCLUCAS TOLD REPRESENTATIVES OF SEVERAL SECURITIES EXCHANGES THAT REMOVING ABUSIVE BROKERS FROM THE SECURITIES BUSINESS AND PUNISHING THEIR SUPERVISORS WILL BE A PRIORITY DURING MR LEVITT'S TENURE ACCORDING TO PEOPLE WHO ATTENDED THE MEETING I THINK THEY'RE QUITE SERIOUS ABOUT THE CRACKDOWN SAID JOSEPH HARDIMAN CHAIRMAN OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND WE AGREE WITH THEIR DIRECTION THAT WE NEED TO SPEND A GOOD DEAL MORE TIME FOCUSING ON THE ROGUE BROKERS MR MCLUCAS IN AN INTERVIEW SAID THE ENFORCEMENT DIVISION WILL BE PAYING INCREASED ATTENTION TO BROKERAGE FIRMS' RETAIL SALES PRACTICES AND ANY FAILURE TO SUPERVISE BROKERS EARLIER THIS YEAR THE SEC REACHED A SETTLEMENT WITH PAINEWEBBER INC A UNIT OF PAINEWEBBER GROUP INC OVER ITS FAILURE TO SUPERVISE BROKERS IN BRANCH OFFICES AND IN A CONTINUING INVESTIGATION THE SEC IS EXAMINING THE ADEQUACY OF THE SUPERVISION OF BROKERS WORKING IN PRUDENTIAL SECURITIES' BRANCH OFFICES THAT INQUIRY IS FOCUSING ON SOME OF THE FIRM'S TOP MANAGERS MR BEESE IN HIS SPEECH PREPARED FOR THE SIA CONVENTION WARNS THAT THE COMMISSION IS FULLY PREPARED TO PURSUE FAILURETOSUPERVISE SANCTIONS RIGHT UP THE CHAIN OF COMMAND SENIOR MANAGEMENT SHOULD NOW REALIZE THAT GEOGRAPHIC DISTANCES DO NOT INSULATE THEM FROM ROGUE BROKERS AND GUNSLINGING BRANCH OFFICES 9312020175 931202 INTERNATIONAL SWISS CPI FELL 01 IN NOVEMBER BERN SWITZERLAND SWITZERLAND'S NOVEMBER CONSUMER PRICE INDEX FELL 01 FROM THE PREVIOUS MONTH BUT ON THE YEAR IT ROSE 22 THE GOVERNMENT SAID 9312020174 931202 CANADA SELLS 475 BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD AT AUCTION 250 BILLION CANADIAN DOLLARS US187 BILLION OF 475 BONDS DUE MARCH 15 1996 AT AN AVERAGE YIELD OF 4944 THE PROCEEDS WILL BE USED TO REDEEM C850 MILLION OF MATURING GOVERNMENT BONDS AND FOR GENERAL GOVERNMENT PURPOSES 9312020173 931202 BELLSOUTH IS EXPECTED TODAY TO FILE LEGAL CHALLENGE TO AT&TMCCAW DEAL BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELLSOUTH CORP IS EXPECTED TO FILE A LEGAL CHALLENGE TODAY TO AMERICAN TELEPHONE & TELEGRAPH CO'S PLAN TO ACQUIRE MCCAW CELLULAR COMMUNICATIONS INC IN THE FIRST MOVE BY A BABY BELL TO IMPOSE A ROADBLOCK TO THE 126 BILLION DEAL BELLSOUTH WILL ARGUE THAT THE AT&TMCCAW PACT VIOLATES THE CONSENT DECREE BY WHICH THE OLD AT&T WAS BROKEN UP A DECADE AGO SPINNING OFF THE SEVEN BELL REGIONAL COMPANIES IN A MOTION TO BE FILED IN FEDERAL COURT IN WASHINGTON TODAY THE ATLANTA COMPANY WILL CONTEND THAT AT&T SHOULD BE FORCED TO ASK FOR A MODIFICATION BY THE COURT OF THE CONSENT DECREE BEFORE IT CAN PROCEED WITH THE MCCAW ACQUISITION ALL SEVEN BABY BELLS HAVE WORRIED THAT AT&T'S ACQUISITION OF MCCAW WHICH PROVIDES CELLULAR PHONE SERVICE TO ABOUT TWO MILLION CUSTOMERS COULD LET AT&T EVENTUALLY COMPETE WITH THE BELLS IN LOCAL PHONE SERVICE UNTIL NOW HOWEVER THEY HADN'T DIRECTLY CHALLENGED THE LEGALITY OF THE DEAL INSTEAD HOPING TO USE IT AS A LEVER TO PUSH FOR ALLOWING THE BABY BELLS TO COMPETE WITH AT&T IN THE LONGDISTANCE MARKET A BELLSOUTH SPOKESMAN DECLINED TO COMMENT ON THE LEGAL ACTION AT&T SAID IT DOESN'T BUY THE BELLSOUTH ARGUMENT WE DON'T BELIEVE THERE ARE ANY VALID REGIONAL BELL OBJECTIONS TO THE AT&TMCCAW MERGER SAID AN AT&T SPOKESMAN ADDING THAT THE COMPANY EXPECTS TO COMPLETE THE MCCAW DEAL EARLY NEXT YEAR AS SCHEDULED IN CHALLENGING THE MCCAW PACT BELLSOUTH IS INVOKING A PROVISION OF THE CONSENT DECREE THAT BLOCKS AT&T FROM EVER ACQUIRING A BABY BELL THE BELLSOUTH FILING ARGUES THAT BECAUSE MCCAW HOLDS A STAKE IN A CELLULAR SYSTEM THAT BELLSOUTH OWNS AT&T IS WRONGLY ACQUIRING A PART OF A BELL COMPANY AS IT BUYS MCCAW OTHER BELLS INCLUDING BELL ATLANTIC CORP AND AMERITECH ALSO JOINTLY OWN CELLULAR PROPERTIES WITH MCCAW ACCORDING TO THE BELLSOUTH LEGAL MOTION BUT BELLSOUTH IS EXPECTED TO ACT ALONE IN CHALLENGING THE AT&T EFFORT IN COURT TODAY BELLSOUTH'S OBJECTION COULD EASILY BE REMOVED IF MCCAW SOLD OFF THE QUESTIONED STAKE A 40 OWNERSHIP OF THE CELLULAR SYSTEM IN LOS ANGELES AND BELLSOUTH DIDN'T POINT OUT THOSE OBJECTIONS IN A FILING LAST MONTH WITH THE FEDERAL COMMUNICATIONS COMMISSION WHEN THE BELL COMPANY MERELY ASKED THE FCC TO ENSURE THAT AT&TMCCAW WOULDN'T COMPETE IN LOCAL PHONE SERVICE BUT BELLSOUTH IS WILLING TO OVERLOOK THE OBJECTIONS IF THE COURT WILL GRANT THE BABY BELLS SOME REGULATORY RELIEF FROM THE LONGDISTANCE RESTRICTIONS THE RULES ARE SO STRICT THAT BELLSOUTH IN BEAMING CELLULAR CALLS FROM ONE CITY IN FLORIDA TO ANOTHER IS FORCED TO RELY ON AT&T OR ANOTHER LONGDISTANCE CARRIER TO BRIDGE THE CALL OVER COURTMANDATED BOUNDARIES THAT BELLSOUTH ISN'T ALLOWED TO CROSS THAT REQUIRES BELLSOUTH TO PAY THE CARRIER AN ACCESS FEE ADDING TO THE COST OF THE CALL YET AT&TMCCAW WOULD BE ALLOWED TO TREAT SUCH A CALL AS A LOCAL ONE AT A LOWER RATE IN ITS LEGAL MOTION BELLSOUTH SAID IT HAS NO INTEREST IN OPPOSING AN EFFORT BY AT&T TO GET A MODIFICATION OF THE CONSENT DECREE BUT IF THE COURT GRANTS A MODIFICATION FOR AT&T BELLSOUTH WANTS IT TO ADDRESS THE COMPETITIVE INEQUITIES THAT SHACKLE THE BABY BELLS IN THE WIRELESS MARKET IN OTHER WORDS SIMILAR RELIEF FOR THE BELLS MEANTIME MCCAW YESTERDAY SAID IT WILL REDEEM ITS OUTSTANDING 12 BILLION OF DEBT ON DEC 31 THE COMPANY SAID THE DEBT INCLUDES ITS 14 SENIOR SUBORDINATED DEBENTURES DUE JUNE 15 1998 AND 1295 SENIOR SUBORDINATED DEBENTURES DUE AUG 15 1999 IT ALSO INCLUDES 1275 SENIOR NOTES DUE JAN 1 1994 AND 13 SENIOR SUBORDINATED NOTES DUE JULY 1 1996 ISSUED BY MCCAW CELLULAR INC A UNIT OF MCCAW MCCAW OFFICIALS DIDN'T RETURN CALLS SEEKING A COMMENT HOWEVER A BANKING EXECUTIVE CLOSE TO THE COMPANY SAID THE MONEY THAT WILL BE USED TO REDEEM DEBT WILL COME FROM CASH RESERVES MUCH OF IT RAISED FROM THE SALE OF STOCK TO AT&T MCCAW SAID THE REDEMPTION PRICE ON THE 14 DEBENTURES WILL BE 104851 OF THE PRINCIPAL AMOUNT PLUS ANY INTEREST THAT ACCRUES AFTER DEC 15 CURRENTLY ABOUT 400 MILLION OF THE 14 DEBENTURES ARE OUTSTANDING 9312020172 931202 ENTERPRISE BLACK ENTREPRENEUR SPECIALLY TAILORS TOYS FOR MINORITIES WILLINGNESS TO LISTEN AND FOLLOW BUYERS' ADVICE PAYS OFF FOR JACOB MILES BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL EVERY STARTUP TOY COMPANY DREAMS THAT SANTA AND HIS REINDEER WILL CARRY A HEAVY LOAD OF ITS PRODUCTS MINNEAPOLIS ENTREPRENEUR JACOB R MILES III MADE THAT DREAM COME TRUE LARGELY BY HEEDING EXPERTS' ADVICE FOUNDERS OF SMALL COMPANIES FACED WITH AN UNEXPECTED FLOOD OF SECONDGUESSING OFTEN GROW DEFENSIVE OR SLINK OFF TO NURSE THEIR WOUNDED PRIDE MR MILES DID NEITHER INSTEAD HE ACTED ON ADVICE OF PROFESSIONAL BUYERS BY TEARING UP HIS PROPOSED PRODUCT SPECIFICATIONS PRICING AND PACKAGING AND STARTING ALL OVER AGAIN I WAS MORE THAN WILLING TO LISTEN TO WHAT THE MERCHANDISING PEOPLE WERE SAYING AND TO VIEW THEM AS PARTNERS IN LAUNCHING MY BUSINESS THE 40YEAROLD ENTREPRENEUR SAYS MR MILES A FORMER TOY INDUSTRY EXECUTIVE REFOCUSED HIS CULTURAL EXCHANGE CORP EARLY LAST YEAR TO DESIGN AND MARKET A LINE OF PLAYTHINGS LARGELY AIMED AT MINORITY GROUPS THE COMPANY RECENTLY MADE ITS FIRST SHIPMENTS TO RETAILERS TOYS R US INC AND DAYTON HUDSON CORP SALES WHICH WILL EXCEED 1 MILLION FOR 1993 ARE POISED TO REACH MORE THAN 10 MILLION FOR 1994 THE FIRST FULL YEAR OF PRODUCTION MR MILES PREDICTS IF HE ACHIEVES THOSE PROJECTED SALES LEVELS IT WILL BE BECAUSE HE LISTENED CAREFULLY ALTHOUGH MR MILES'S READY ACCEPTANCE OF PROFESSIONALS' ADVICE SOUNDS SIMPLE IT IS PRECISELY WHAT MANY STARTUPS DON'T DO SPECIALISTS SAY SMALL BUSINESSES RARELY OBTAIN ADVICE FROM THE RIGHT PEOPLE AND OFTEN FAIL TO TAKE GOOD ADVICE WHEN THEY DO GET IT A LOT OF PEOPLE WHO GET THEIR FOOT IN THE DOOR HAVE A GREAT CONCEPT BUT IT GOES NOWHERE BECAUSE THEY CAN'T OR WON'T MAKE CHANGES PROPOSED BY WOULDBE CUSTOMERS SAYS MICHAEL GOLDSTEIN VICE CHAIRMAN OF TOYS R US IN PARAMUS NJ BY CONTRAST MR GOLDSTEIN ADDS MR MILES WAS ABSOLUTELY FLEXIBLE HE WAS WILLING TO MAKE CHANGES AND HE WAS QUICK AT IT MR MILES GOT A FOOT IN THE DOOR AT TOYS R US PARTLY BECAUSE HE IS BLACK THE BIG RETAIL CHAIN SAYS IT IS SEEKING TO INCREASE PURCHASES FROM MINORITY SUPPLIERS THE ENTREPRENEUR QUICKLY DISCOVERED THAT IT IS CRUCIAL FOR WOULDBE SUPPLIERS OF ANY COLOR TO LISTEN TO POTENTIAL CUSTOMERS AS HE EXPECTED MR MILES FACED CONCERNS THAT A TINY COMPANY WITHOUT A TRACK RECORD MIGHT NOT BE ABLE TO DELIVER HE WAS GREATLY SURPRISED HOWEVER BY BUYERS' UNEXPECTED ADVICE ABOUT EVERY ASPECT OF HIS PROPOSED PRODUCT LINE AND HE DECIDED TO TAKE THE ADVICE SERIOUSLY WHEN YOU HEAR THE SAME THINGS MORE THAN ONCE YOU KNOW THESE PEOPLE ARE DEAD ON HE SAYS AT THE OUTSET MR MILES DIDN'T ANTICIPATE THAT LAUNCHING HIS PRODUCTS WOULD REQUIRE SO MUCH GIVEANDTAKE AFTER SPENDING 21 YEARS IN THE TOY INDUSTRY MR MILES BELIEVED HE HAD VIABLE IDEAS FOR TOYS AIMED AT MINORITIES WHEN HE LOST HIS JOB AS A MANUFACTURING EXECUTIVE FOR HASBRO INC AFTER THE TOY MAKER SHUT THE ST LOUIS PARK MINN OPERATIONS OF ITS TONKA DIVISION IN LATE 1991 HE INVESTED HIS SEVERANCE PAY AND RETIREMENT MONEY IN CULTURAL EXCHANGE MR MILES AND HIS WIFE ROSALIND N BELL A MARKETING MANAGER WHO HELPS GRAND METROPOLITAN PLC'S PILLSBURY UNIT TARGET MINORITY CONSUMERS FOUNDED THEIR COMPANY IN 1990 AS A SIDELINE AT THAT TIME THEY SPENT MOST OF THEIR WORKDAY OPERATING A MINNEAPOLIS ART AND CRAFTS GALLERY WHICH SUBSEQUENTLY CLOSED IN 1992 EARLY LAST YEAR MR MILES DECIDED TO DEVELOP TOYS BOOKS PUZZLES GREETING CARDS AND OTHER PRODUCTS HE SAYS THE TOY INDUSTRY HAS LARGELY FAILED TO SPECIALLY TAILOR SUCH ITEMS FOR MINORITIES MR MILES BEGAN BY CREATING THREE PROTOTYPES FOR STUFFED ANIMALS CALLED HOLLYWOOD HOUNDS THE PETS OF AMERICA'S CULTURALLY DIVERSE FAMILIES FOR EXAMPLE A DOG NAMED SPIKE WITH THE SAME FLATTOP HAIRSTYLE NOW FAVORED BY MANY BLACK YOUTHS WEARS A SHIRT WITH AFRICAN COLORS AND DESIGN THE ENTREPRENEUR ALSO FASHIONED A STORY LINE LINKING THE CHARACTERS AND EMPHASIZING VALUES SUCH AS HOME AND LOVE IN THE FALL MR MILES VISITED PROFESSIONAL BUYERS WHO CHOOSE TOYS FOR RETAIL CHAINS WHILE THEY EXPRESSED INTEREST IN HIS PROTOTYPES THEY ALSO RAISED SEVERAL IMPORTANT OBJECTIONS FOR INSTANCE THE BUYERS ADVISED HIM TO DEVELOP AT LEAST THREE MORE PRODUCTS BECAUSE A MERE THREE WOULDN'T MAKE MUCH OF AN IMPRESSION ON STORE SHELVES BUYERS ALSO SUGGESTED THAT MR MILES LOWER HIS PROPOSED PRICES TO RETAILERS OF ABOUT 12 PER STUFFED ANIMAL AND THEY VIEWED HIS MUTEDYELLOW PACKAGING AS TOO DISTINCTIVE MR MILES LEARNED THAT CONSUMERS EXPECT TOYS FOR YOUNG CHILDREN TO BE PACKAGED IN RED WHITE AND BLUE SO HE BROADENED HIS PROPOSED LINE TODAY HE HAS 18 PRODUCTS HE EXPECTS TO HAVE 60 ON THE MARKET NEXT YEAR HE ALSO PRODUCED NEW PROTOTYPES SMALLER THAN THE FIRST ONES AND SLASHED THE PLANNED PRICES BY MORE THAN 15 AS FOR THE PACKAGING HE BECAME A CONFORMIST BASICALLY USING RED WHITE AND BLUE AND ADDING MULTICOLORED ETHNIC STRIPES MR MILES WHO OUTLINED HIS PROGRESS DURING SUBSEQUENT MEETINGS WITH RETAIL CHAIN BUYERS EARLY THIS YEAR SAYS SOME SEEMED SHOCKED THAT HE HAD ASSIMILATED SO MUCH ADVICE SO QUICKLY THEY PROMISED TO MAKE PURCHASES IF MR MILES SUCCEEDED IN ARRANGING PRODUCTION BUT AFTER SPENDING ABOUT 400000 ON PREPRODUCTION COSTS MR MILES COULDN'T START MANUFACTURING WITHOUT MORE MONEY BUYERS' RAVES ABOUT HIS PRODUCTS HELPED R J STEICHEN & CO A MINNEAPOLIS INVESTMENT BANKING FIRM LINED UP 600000 IN SHORTTERM LOANS FROM PRIVATE INVESTORS IN JUNE ENABLING MR MILES TO CONTRACT FOR PRODUCTION IN SHENZEN CHINA JAMES J CHICA A STEICHEN BANKER SAYS HIS CHECKS WITH TOY BUYERS REINFORCED HIS GUT FEELING THAT MR MILES KNOWS WHAT HE IS DOING IN OCTOBER STEICHEN HELPED THE ENTREPRENEUR SELL A 45 STAKE IN CULTURAL EXCHANGE TO ABOUT 90 PRIVATE INVESTORS FOR 23 MILLION INCLUDING 600000 FROM CONVERTING THE LOANS INTO EQUITY THE FINANCING CAME TOO LATE FOR MR MILES TO MEET ALL OF HIS CHRISTMAS ORDERS FOR NOW HE CHOOSES TO SHIP ONLY TO TOYS R US AND DAYTON HUDSON COMPANIES THAT WERE AMONG HIS BEST EARLY ADVISERS WE REALLY WANT TO SHOW THEM THAT WE APPRECIATE ALL THE FEEDBACK HE EXPLAINS 9312020171 931202 ASBESTOS ACTION TO LIMIT CLAIMS IS THROWN OUT APPEALS COURT'S DECISION IN KEENE CASE RAISES DOUBTS ON SETTLEMENTS BY MARGARET A JACOBS AND WADE LAMBERT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A FEDERAL APPEALS COURT THREW OUT A JUDGE'S ATTEMPT TO IMPOSE A MANDATORY SETTLEMENT OF ASBESTOS CLAIMS RAISING QUESTIONS ABOUT HOW FAR A COMPANY CAN GO IN LIMITING ITS LIABILITY IN SUCH CASES THE SECOND US CIRCUIT COURT OF APPEALS FOUND THAT A FEDERAL DISTRICT JUDGE HAD OVERSTEPPED HIS CONSTITUTIONAL BOUNDS IN APPROVING A MANDATORY CLASSACTION AGAINST KEENE CORP THE COMPANY HAD PROPOSED THE ACTION IN ORDER TO PUT A CAP ON ITS FUTURE ASBESTOS LIABILITY SAYING A BANKRUPTCY FILING WOULD HAVE LEFT IT OPEN TO UNLIMITED CLAIMS AND WIPED OUT ITS ASSETS SOME ATTORNEYS FOR ASBESTOS VICTIMS SAID THE RULING ALSO IS A SETBACK FOR A 1 BILLION ASBESTOS SETTLEMENT CURRENTLY PENDING IN FEDERAL COURT IN PHILADELPHIA THAT PROPOSED SETTLEMENT WHICH INVOLVES 20 FORMER ASBESTOS MANUFACTURERS BUT NOT KEENE ALSO WOULD ATTEMPT TO IMPOSE A LIMIT ON FUTURE PERSONALINJURY CLAIMS FROM PEOPLE WHO BECOME ILL FROM EXPOSURE TO ASBESTOS ON THE JOB WHILE THE NEW YORK DECISION DOESN'T DIRECTLY AFFECT THE PHILADELPHIA CASE WHICH IS IN A DIFFERENT APPELLATE CIRCUIT SOME OF THE SAME LEGAL ARGUMENTS ARE LIKELY TO BE RAISED ON APPEAL IN THAT CASE SINCE 1977 NEW YORKBASED KEENE HAS BEEN NAMED IN ABOUT 190000 ASBESTOS BODILYINJURY CLAIMS THE COMPANY HAS RESOLVED MORE THAN 95000 OF THEM KEENE HAD SUCCEEDED IN PERSUADING US DISTRICT JUDGE JACK B WEINSTEIN TO DECLARE THAT THE COMPANY HAD A LIMITED POOL OF FUNDS ABOUT 100 MILLION TO PAY DAMAGES TO THE REMAINING PLAINTIFFS INJURED BY ASBESTOS IT HAD MANUFACTURED AS WELL AS TO FUTURE CLAIMANTS THE ARRANGEMENT WOULD IN EFFECT CAP THE COMPANY'S POTENTIAL LIABILITY AT THAT LEVEL UNDER THE MANDATORY CLASSACTION PROCEDURE THE JUDGE WHO HAS A REPUTATION FOR INNOVATIVE CASEMANAGEMENT TECHNIQUES WOULD HAVE TO APPROVE THE ALLOCATION OF THE MONEY BUT THE APPEALS COURT SAID THE CASE FAILED TO PASS A PRELIMINARY CONSTITUTIONAL HURDLE BECAUSE KEENE DIDN'T PRESENT A TRUE LEGAL CLAIM FOR A COURT TO DECIDE NOTABLY ABSENT IS ANY ALLEGATION THAT ANY OF THE DEFENDANTS THE ASBESTOS CLAIMANTS ARE LEGALLY HARMING OR WILL LEGALLY HARM KEENE BY REFUSING TO SETTLE THEIR ASBESTOS CLAIMS COURTS DO NOT HAVE THE AUTHORITY TO COMPEL PARTIES TO SETTLE THEIR CASES THE COURT SAID INSTEAD THE COURT SAID THE CLASSACTION APPROACH WAS SIMPLY AN ATTEMPT TO AVOID FILING FOR BANKRUPTCYLAW PROTECTION THE PROCESS ENVISIONED BY KEENE MIRRORED A BANKRUPTCY PROCEEDING BUT FAILED TO PROTECT CLAIMANTS AS A BANKRUPTCY WOULD THE APPEALS COURT FOUND EVASION OF BANKRUPTCY IS NOT WITHOUT COSTS OR PERILS THE APPELLATE PANEL WROTE CLASS MEMBERS IN CASES SUCH AS THIS WOULD HAVE NO SAY IN THE CONDUCT OF THE COURTAPPOINTED CLASS REPRESENTATIVES AND UNLIKE CREDITORS IN BANKRUPTCY ARE NOT ABLE TO VOTE ON A SETTLEMENT FOR THEM IT WOULD BE CRAMDOWN' FROM START TO FINISH THE COURT SUGGESTED THAT ADOPTION OF KEENE'S APPROACH WOULD LEAD TO FURTHER EVASION OF THE BANKRUPTCY CODE AS OTHER DEBTORS SOUGHT RELIEF IN MANDATORY CLASSACTION COMPLAINTS KEENE HAD ARGUED THAT PRECEDENT COULD BE LIMITED TO BIG LIABILITY SUITS IN WHICH SOME PLAINTIFFS ARE NOT KNOWN AT THE TIME OF THE ACCIDENT BUT THE COURT EXPRESSED SKEPTICISM SAYING THAT IF ADOPTED IT ALSO WOULD HAVE TO APPLY TO MANY BREACHOFWARRANTY AND CONTRACT CASES INVOLVING LARGE NUMBERS OF PURCHASERS OR CREDITORS WE ARE DUBIOUS THAT A LIMIT TO CASES INVOLVING UNKNOWN PLAINTIFFS IS FEASIBLE THE PANEL SAID THE COURT AVOIDS WHAT WOULD HAVE BEEN A BAD PRECEDENT SAID PLAINTIFFS ATTORNEY ERIK JACOBS OF GREITZER & LOCKS IN NEW YORK FREDERICK M BARON A PLAINTIFFS ATTORNEY AT DALLAS LAW FIRM BARON & BUDD SAID THE APPELLATE DECISION MEANS THAT LOWERCOURT JUDGES CAN'T TREAT HUGE LIABILITY CASES SUCH AS ASBESTOS LITIGATION DIFFERENTLY THAN THOSE INVOLVING OTHER INSOLVENT COMPANIES MR BARON SAID THAT KEENE WOULD HAVE BENEFITED FROM THE ARRANGEMENT AT THE EXPENSE OF FUTURE CLAIMANTS WHO DIDN'T HAVE A SAY IN CREATING THE SETTLEMENT MR BARON SAID THAT ALTHOUGH COURTS MAY BE FRUSTRATED BY BIG LIABILITY CASES WHICH CAN INVOLVE THOUSANDS OF CLAIMS JUDGES CAN'T CREATE NEW LAW FOR RESOLVING SUCH LAWSUITS I DON'T WANT TO CRITICIZE JUDGE WEINSTEIN BUT THE LEGISLATURE IS THE PLACE TO CHANGE THE LAW MR BARON SAID STUART RICKERSON GENERAL COUNSEL FOR THE COMPANY CHARACTERIZED THE DECISION AS DISTURBING AND SAID THAT THE COMPANY WAS CONSIDERING A NUMBER OF OPTIONS HE SAID THE COMPANY HOPED TO AVOID A BANKRUPTCY FILING WE HAD HOPED TO ACHIEVE A SETTLEMENT THAT WOULD MAXIMIZE THE RECOVERY OF THOUSANDS OF CLAIMANTS HE SAID IF KEENE HAD SUCCEEDED WITH THE CLASSACTION MECHANISM IT WOULD HAVE BECOME THE FIRST FORMER ASBESTOS MANUFACTURER TO LIMIT ALL ITS ASBESTOS LIABILITY WITHOUT FILING FOR BANKRUPTCYCOURT PROTECTION SEVENTEEN OTHER FORMER MANUFACTURERS MOST NOTABLY MANVILLE CORP HAVE SOUGHT BANKRUPTCYLAW PROTECTION ASBESTOS AN INSULATION MATERIAL CAN CAUSE CANCER AND LUNG DISEASE YEARS AFTER EXPOSURE 9312020170 931202 WHO'S NEWS BALTIMORE GAS & ELECTRIC CO BALTIMORE GAS & ELECTRIC CO BALTIMORE FREEMAN A HRABOWSKI III WAS NAMED A DIRECTOR OF THE UTILITY EFFECTIVE JAN 1 FILLING A VACANCY CAUSED BY RETIREMENT DR HRABOWSKI 43 YEARS OLD IS PRESIDENT OF THE UNIVERSITY OF MARYLAND BALTIMORE COUNTY 9312020169 931202 REVIEW & OUTLOOK EDITORIAL A GATT BY CHRISTMAS THE SUN HAS COME OUT ON THE GATT WORLD TRADE TALKS BOOSTING HOPES OF AN AGREEMENT BEFORE DEC 15 FRENCH PRIME MINISTER EDOUARD BALLADUR HAS BEEN SOUNDING CONCILIATORY THE FRENCH AGRICULTURE MINISTER IS NOW LAYING THE GROUNDWORK FOR AN ACCORD BY TELLING HIS PEOPLE THAT THE US IS BEGINNING TO BUDGE ON FRENCH AGRICULTURAL DEMANDS FRANCE'S FOREIGN MINISTER ALAIN JUPPE RECENTLY EXPRESSED BELATED DISMAY AT SEEING BOTH ANTIEUROPEANISM AND PROTECTIONISM GAINING GROUND IN FRANCE ALL THIS STIRS HOPES FOR THE GATT TALKS GRANTED MOST OF THE IMPROVEMENT HAS BEEN ATMOSPHERIC ON THE GROUND A NUMBER OF NEW OBSTACLES HAVE ARISEN AND THE CLINTON ADMINISTRATION HAS BEEN THE WORST OFFENDER THE US HAS RECENTLY PULLED BACK FROM A DECEMBER 1991 AGREEMENT AND PROPOSED STRICTER ANTIDUMPING RULES WASHINGTON HAS ALSO PUT FORWARD A TWOTIER PLAN TO OPEN UP ITS FINANCIAL SERVICES SECTOR ALLOWING MARKET ACCESS ONLY TO FIRMS FROM COUNTRIES THAT HAVE OPENED UP THEIR DOMESTIC MARKET AS USUAL THIS SORT OF TRADE CLUB HAS BACKFIRED ASIAN NATIONS ARE THREATENING TO PULL THEIR OFFERS OFF THE TABLE BUT MERE BLUSTER WON'T BREAK THE ROUND THE OBSTACLE TO AN ACCORD HAS ALWAYS BEEN THAT THE ELITES OF ONE OF THE MORE SUCCESSFUL TRADING NATIONS SEEM NOT TO BELIEVE IN FREE TRADE FRENCH OFFICIALS CONTINUALLY ASSERT IN THE PRESS THAT THE FAILURE OF THE GATT ROUND WOULD HAVE NO SERIOUS CONSEQUENCES THEY DISMISS THE NOTION PUT FORWARD BY THE PARISBASED OECD THAT A GATT AGREEMENT WOULD YIELD 270 BILLION TO GLOBAL WEALTH MAJOR FRENCH INDUSTRIALISTS TRUMPET ECONOMIC NATIONALISM THE 18TH CENTURY ECONOMIST JEAN BAPTISTE SAY WAS A FRENCHMAN BUT HIS WISE THEORIES HAVE BEEN FORGOTTEN IN HIS HOMELAND HE WROTE THAT WEALTH IS NEVER STATIC INCREASED PRODUCTIVITY YIELDS JOB CREATION INCREASED EFFICIENCY CREATES HIGHER STANDARDS OF LIVING INCREASED TRADE YIELDS MORE WEALTH IN TODAY'S FRENCH DEBATE BY CONTRAST WEALTH IS MORE LIKELY TO BE SEEN AS A FINITE MATERIAL THING WITH NATIONS COMPETING WITH EACH OTHER IN ORDER TO PLUNDER IT THE FRENCH ARE TAKEN WITH THE IDEA OF JOB SHARING BECAUSE IT GROWS FROM A LUMPOFLABOR PREMISE THERE IS A FINITE AMOUNT OF WORK TO BE DONE SO THE GOVERNMENT CAN SOLVE UNEMPLOYMENT BY SIMPLY SPREADING IT AROUND FRANCE'S CAST OF MIND PUTS IT AT ODDS NOT ONLY WITH THE PREVALENT US VIEW BUT ALSO WITH GERMANY WHICH ENTHUSIASTICALLY SUPPORTS FREE TRADE GERMAN OFFICIALS SUCH AS ECONOMICS MINISTER GUENTER REXRODT HAVE RESPONDED TO THE CURRENT ECONOMIC SLOWDOWN BY URGING HARDER WORK DEREGULATION TO INCREASE EFFICIENCY AND A MORE LIBERAL TRADE REGIME EVEN UNDER THE BASICALLY LIBERAL EDOUARD BALLADUR FRENCH DEBATE HAS GONE OFF IN A DIFFERENT DIRECTION DURING THE GATT PROCESS GERMANY AND FRANCE HAVE PUBLICLY PROJECTED AN IMAGE OF SOLIDARITY THE GERMAN DIPLOMATIC ELITE VALUES THE FRANCOGERMAN ALLIANCE MORE THAN ANY OTHER POLICY SO IS WILLING TO COMPROMISE ON OTHER GERMAN INTERESTS TO PRESERVE WARM RELATIONS ACROSS THE RHINE THE GERMANS HAVE DONE MUCH PRIVATE NUDGING INCLUDING AT THIS WEEK'S FRANCOGERMAN SUMMIT BUT THE TOTAL EFFECT OF GERMAN POLICY SEEMS TO HAVE BEEN TO ENCOURAGE FRENCH OFFICIALS TO BELIEVE THAT MORE CONCESSIONS COULD BE WRANGLED OUT OF THE US NOW WE SUSPECT THAT SIMPLY THE HORROR OF BEING BLAMED FOR A GATT FAILURE HAS FOCUSED MINDS IN THE FRENCH GOVERNMENT THE EC WILL HAVE LOST ITS MORAL LEGITIMACY THE US WILL LOOK INCREASINGLY TO ASIA RATHER THAN TO EUROPE ANTIFRENCH SENTIMENT WOULD GROW IN GERMANY MR BALLADUR MAY ALREADY BE MANEUVERING TO LIMIT ANY DOMESTIC DAMAGE IF HE APPROVES A GATT ACCORD A VOTE IN PARLIAMENT ON GATT MOST LIKELY WILL BE A CONFIDENCE VOTE MEMBERS OF HIS CENTERRIGHT COALITION WHO HAVE BEEN STRIKING ANTIAMERICAN POSITIONS WOULD HAVE TO THINK VERY HARD BEFORE DESTROYING THEIR OWN GOVERNMENT ON AN ISSUE WHERE IN WORLD OPINION THEY WOULD BE ON THE WRONG SIDE SO MAYBE FRANCE A NATION THAT EXPORTS SO SUCCESSFULLY WILL FINALLY CLEAR THE WAY FOR AN AGREEMENT THAT WILL GIVE A BOOST TO ITS OWN ECONOMIC PROSPECTS IF THAT HAPPENS SOMEDAY THE IDEAS OF FRENCH ELITES MAY CATCH UP WITH THE MODERN PRACTICES OF FRENCH TRADERS OR EVEN FRANCE'S MOST HIGHLY REGARDED CLASSICAL ECONOMISTS 9312020168 931202 WHO'S NEWS SERVICE AMERICA CORP SERVICE AMERICA CORP STANFORD CONN JANET STEINMAYER 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF THIS MAJOR INSTITUTIONAL FOOD SERVICE COMPANY MAJORITY OWNED BY GENERAL ELECTRIC CO'S GENERAL ELECTRIC CAPITAL CORP MS STEINMAYER WAS SENIOR VICE PRESIDENT AND GENERAL COUNSEL FOR TRANS WORLD AIRLINES 9312020167 931202 BUSINESS BRIEF TYCO TOYS WILL OMIT DIVIDEND REPORT LOSS FOR 4TH QUARTER STOCK SLIDES 18 TYCO TOYS INC SUFFERING FROM A DEARTH OF POPULAR PRODUCTS SAID IT WILL OMIT ITS DIVIDEND REPORT A FOURTHQUARTER LOSS AND FALL SHORT OF MATCHING LAST YEAR'S 769 MILLION IN REVENUE THE MOUNT LAUREL NJ TOY MAKER WHICH HAS BEEN STUMBLING SINCE ITS LITTLE MERMAID DOLL FADED LAST YEAR ALSO SAID IT HAS RETAINED ALLEN & CO AS FINANCIAL ADVISER TO MANAGE A PRIVATE EQUITY OFFERING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY TYCO FELL 1875 OR 18 TO 875 ALTHOUGH SOME ANALYSTS SEE THE MOVES AS A POSSIBLE HARBINGER OF TYCO'S TAKEOVER THE COMPANY INSISTS THAT IT IS NEITHER FOR SALE NOR IN FINANCIAL STRAITS WHAT THIS MEANS IS THAT WE'LL BE NEEDING MORE WORKING CAPITAL TO DO THE KINDS OF THINGS WE'RE PLANNING FOR 1994 SAID RICHARD E GREY CHAIRMAN AND CHIEF EXECUTIVE OFFICER TYCO HAS PREVIEWED AT TOY SHOWS NEW ACTION FIGURES TIED INTO WEEKLY CARTOON SERIES BETWEEN 65 AND 75 OF 1994 REVENUE WILL COME FROM NEW TOYS MR GREY SAID IN THE FIRST NINE MONTHS OF 1993 TYCO HAD A LOSS OF 118 MILLION ON 4822 MILLION IN SALES THE COMPANY MOST RECENTLY PAID A QUARTERLY DIVIDEND OF 25 CENTS A SHARE THE COMPANY DIDN'T SAY HOW LARGE ITS FOURTHQUARTER LOSS WOULD BE JILL KRUTICK AN ANALYST AT SALOMON BROTHERS INC ESTIMATES A LOSS OF 35 CENTS A SHARE WIDER THAN THE 1992 FOURTHQUARTER LOSS OF 82 MILLION OR 25 CENTS A SHARE TYCO A ONETIME HIGH FLYER THAT WAS COURTED BY A NUMBER OF COMPANIES IN THE PAST COULD BE ABSORBED BY A LARGER ENTITY MS KRUTICK SAID ESPECIALLY IN LIGHT OF A GENERAL TREND TOWARD CONSOLIDATION IN THE TOY INDUSTRY BUT MR GREY SAID THAT WE'RE NOT LOOKING FOR A MERGER PARTNER OR WE WOULD HAVE SAID SO TYCO'S FORTUNES SOARED IN THE LATE 1980S AND EARLY 1990S AS IT CAME UP WITH HIT AFTER HIT INCLUDING LITTLE MERMAID AND CRASH DUMMIES BUT THE COMPANY SERVED UP A SERIES OF MISSES THIS YEAR AND HAS FEW STRONG FALLBACKS IF YOU WANT TO LAY BLAME THE SUCCESS OF LITTLE MERMAID COVERED UP PROBLEMS IN OTHER PARTS OF THE COMPANY'S BUSINESS SAID SEAN MCGOWAN TOY ANALYST FOR GERARD KLAUER MATTISON & CO TYCO DOESN'T HAVE A CORE OF EVERGREEN PRODUCTS THAT GENERATE STEADY SALES HE ADDED MS KRUTICK SAYS TYCO'S DOLLS LED BY LITTLE MERMAID BROUGHT IN 145 MILLION IN REVENUE IN 1991 FELL TO 135 MILLION IN 1992 AND THIS YEAR WILL DROP TO LESS THAN 75 MILLION NEXT YEAR THE COMPANY PLANS TO TIE THE BULK OF ITS NEW OFFERINGS TO SATURDAY MORNING CARTOONS AND WELLKNOWN LICENSED PRODUCTS LIKE WARNER BROS LOONEY TUNES AND HARLEY DAVIDSON MS KRUTICK SAID 9312020166 931202 THESE STOCKS CRASHED WITH A HUGE BANG WAS IT DYNAMITE LOS YUPPIES' OF VENEZUELA ALLEGEDLY SET OFF BOMBS TO CASH IN ON MARKET DROP BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL CARACAS VENEZUELA ONE DAY LAST JULY A BEARISH INVESTOR NAMED RAMIRO HELMEYER WALKED INTO A LOCAL BROKERAGE FIRM HE EXPRESSED A STRONG BELIEF THAT VENEZUELA WAS HEADED FOR SEVERE SOCIAL TURMOIL RECALLS THE BROKER IBRAHIM VELUTINI HE WANTED TO SELL SHORT IN A SHORT SALE AN INVESTOR SELLS BORROWED STOCK IN THE HOPE OF MAKING A PROFIT IF THE PRICE FALLS IT'S A RISKY INVESTMENT STRATEGY BUT IN MR HELMEYER'S CASE IT PROVED TO BE A PRESCIENT ONE NOT LONG AFTER MR VELUTINI MADE TWO SHORT TRADES FOR MR HELMEYER CARACAS WAS ROCKED BY A SERIES OF TERRORIST BOMBINGS THE ASSAULTS BATTERED VENEZUELAN MARKETS PRICES FELL JUST AS MR HELMEYER HAD FORESEEN MR HELMEYER'S INVESTMENT OF ONE MILLION BOLIVARS OR ABOUT 10000 TRIPLED IN VALUE I THOUGHT HE WAS QUITE LUCKY SAYS MR VELUTINI LUCK MAY HAVE HAD LITTLE TO DO WITH MR HELMEYER'S SUCCESS POLICE NOW BELIEVE THAT HE WAS THE ONE SETTING OFF THE BOMBS IN A BIZARRE CASE OF MAYHEM AND APPARENT MARKET MANIPULATION MR HELMEYER IS CHARGED WITH HEADING A GROUP THAT CARRIED OUT A FLURRY OF TERRORIST BOMBINGS IN ORDER TO PROFIT FROM THE RESULTING DECLINE IN THE PRICE OF VENEZUELAN STOCKS AND PUBLICLYTRADED GOVERNMENT DEBT WE HAVE UNCOVERED A NEW TYPE OF CRIME FINANCIAL TERRORISM SAYS ORLANDO JORDAN PETIT DIRECTOR OF THE VENEZUELAN JUDICIAL POLICE INDEED SINCE AT LEAST ONE OF THE BOMBS MAY HAVE BEEN TRIGGERED BY AN ELECTRICAL CURRENT IT'S POSSIBLE THAT THE VENEZUELANS HAVE GIVEN AN ENTIRELY NEW MEANING TO THE TERM SHORTING THE MARKET THIS CARIBBEAN CAPITAL IS ABUZZ OVER A CASE THAT HAS ALL THE INGREDIENTS OF A LATIN AMERICAN SOAP OPERA HIGHFLYING FINANCIERS HOODED STREET BOMBERS AND A VICIOUS MURDER OF ONE SUPPOSED CONSPIRATOR WHOSE CORPSE WAS DUMPED OUT OF A JET IN MIDFLIGHT THE AFFAIR OF LOS YUPPIES EVEN FEATURES A REAL LIFE SOAPOPERA ACTRESS A FRIEND OF MR HELMEYER'S WHOSE APARTMENT PARKING SPACE WAS ALLEGEDLY USED WITHOUT HER KNOWLEDGE TO BUILD A CAR BOMB MR HELMEYER AND THOSE ACCUSED OF BEING HIS ASSOCIATES HAVE DENIED INVOLVEMENT IN THE BOMBINGS AND UNDER VENEZUELAN LAW ALL OF THE STATE'S EVIDENCE WON'T BE MADE PUBLIC UNTIL AFTER A SUPERIOR COURT JUDGE RENDERS A VERDICT FOR THEIR PART MANY MEMBERS OF THE FINANCIAL COMMUNITY ARE SKEPTICAL THAT THE PRIME MOTIVE FOR THE BOMBINGS WAS PROFIT GOVERNMENT OFFICIALS HAVEN'T YET DISCLOSED HOW MUCH MONEY THE ALLEGED BOMBERS MADE IN THE MARKET THOUGH MR JORDAN PETIT SAYS THE GAINS REACHED TENS OF THOUSANDS OF DOLLARS IT'S NOT CLEAR TO ME THAT THE PROFITS THE TERRORISTS SUPPOSEDLY EARNED JUSTIFIED THE GRAVE RISKS THEY TOOK SAYS NORIS AGUIRRE PRESIDENT OF THE BOLSA DE VALORES DE CARACAS THE STOCK EXCHANGE SOME SPECULATE THAT MR HELMEYER AND HIS ALLEGED CONFEDERATES MIGHT HAVE BEEN POLITICAL TERRORISTS WHO ENGAGED IN MARKET SPECULATION IN ORDER TO FINANCE THEIR ACTIVITIES ALTHOUGH NO ONE IS QUITE SURE WHAT THEIR CAUSE MIGHT BE VENEZUELA'S STOCK MARKET IS AS VOLATILE AS ITS POLITICS AFTER HAVING SOARED IN DOLLAR TERMS 500 AND 44 IN 1990 AND 1991 RESPECTIVELY THE CARACAS EXCHANGE LOST MORE THAN HALF ITS VALUE OVER THE NEXT 18 MONTHS FOLLOWING TWO ABORTIVE MILITARYCOUP ATTEMPTS POLICE ASSERT THAT THIS CORRELATION BETWEEN SOCIAL DISORDER AND FALLING STOCK PRICES IS WHAT INSPIRED THE 35YEAROLD MR HELMEYER TO UNDERTAKE THE BOMBING SCHEME A REEDTHIN MAN WITH A BLACK BELT IN KARATE MR HELMEYER RAN A PRIVATE INVESTIGATING FIRM THAT CATERED TO WEALTHY VENEZUELANS POLICE SAY THAT IT WAS THROUGH HIS WORK THAT MR HELMEYER MET HIS ALLEGED COCONSPIRATOR THOR HALVORSSEN 50 THE FORMER PRESIDENT OF THE VENEZUELAN TELEPHONE COMPANY THE TWO ARE ACCUSED OF HAVING RECRUITED SEVERAL MEMBERS OF MR HELMEYER'S INVESTIGATIVE FIRM AS WELL AS SOME EXPLOSIVES EXPERTS RECENTLY DISCHARGED FROM THE VENEZUELAN MILITARY BEFORE THE BOMBINGS MR HELMEYER OR HIS ASSOCIATES MADE TRADES WITH A NUMBER OF VENEZUELAN BROKERAGE HOUSES AND PERHAPS WITH SOME INVESTMENT HOUSES OUTSIDE OF THE COUNTRY POLICE SAY AT THE TIME THAT MR HELMEYER APPROACHED HIM THIS SUMMER MR VELUTINI RECALLS THINKING IT PECULIAR THAT THE PRIVATE INVESTIGATOR WANTED TO SHORT ELECTRICIDAD DE CARACAS A BLUECHIP ELECTRIC UTILITY THAT ACCOUNTS FOR ABOUT 20 OF THE STOCK MARKET'S TOTAL CAPITALIZATION BUT HELMEYER WAS CONVINCED THAT THINGS WERE GOING TO GET HOT IN VENEZUELA MR VELUTINI SAID THE PRIVATE INVESTIGATOR THEN SET ABOUT STOKING THE FLAMES POLICE SAY ON THE NIGHT OF JULY 29 ACCORDING TO POLICE MR HELMEYER AND HIS ASSOCIATES SET OFF A SMALL BOMB IN A GAS STATION IN THE DAYS THAT FOLLOWED MR HELMEYER'S GANG DETONATED BLASTS AT AN AUTOMATIC TELLER MACHINE AN OFFICE TOWER A POLICE STATION AND THE HEADQUARTERS OF A LEFTIST POLITICAL PARTY POLICE ALLEGE THE BIGGEST BLOW CAME ON AUG 18 WHEN A CAR BOMB WHICH MR HELMEYER HAD ALLEGEDLY BUILT OUTSIDE THE APARTMENT OF THE SOAPOPERA ACTRESS WHO WAS TRAVELING OUT OF THE COUNTRY AT THE TIME BLEW UP IN THE PARKING GARAGE OF AN UPSCALE SHOPPING MALL THERE WERE NO MAJOR INJURIES IN THE ATTACKS POLICE INVESTIGATORS WERE BAFFLED THEY COULD DISCERN NO COHERENT IDEOLOGY IN TERRORISTS WHO WOULD PLACE BOMBS IN THE HAUNTS OF BOTH LEFTIST POLITICIANS AND CONSPICUOUS CONSUMERS ALSO THE BOMBERS SEEMED TO TAKE PAINS TO DETONATE THEIR DEVICES AT TIMES WHEN FEW PASSERSBY WOULD BE PUT AT RISK THE SHOCKWAVES FROM THE EXPLOSIONS REVERBERATED ON THE BOLSA WHERE ELECTRICIDAD DE CARACAS FELL ABOUT 20 IN THE MONTH FOLLOWING THE ATTACK AS INVESTORS BECAME JITTERY OVER THE APPARENT POLITICAL INSTABILITY MR VELUTINI WAS IMPRESSED NOT ONLY BY THE PRIVATE INVESTIGATOR'S SHREWDNESS IN ANTICIPATING THE DROP IN ELECTRICIDAD BUT ALSO BY HIS COURAGE IN BUYING MUCH OF THE STOCK ON THE MARGIN PUTTING UP ONLY A SMALL FRACTION OF THE PURCHASE PRICE POLICE SAY MR HELMEYER COMMONLY MADE PURCHASES ON THE MARGIN AS THE GOVERNMENT SEARCH FOR THE BOMBERS INTENSIFIED IN MIDSEPTEMBER POLICE SAY AN ART DEALER WHO IS BELIEVED TO HAVE BEEN INVOLVED IN THE PLOT THREATENED TO EXPOSE MR HELMEYER POLICE ALLEGE THAT AN ASSOCIATE OF MR HELMEYER SHOT THE ART DEALER LOADED HIS CORPSE ABOARD A PRIVATE JET THEN DUMPED THE BODY OUT OF THE PLANE SOMEWHERE OVER THE CARIBBEAN THE DISAPPEARANCE OF THE ART DEALER WHO HAD BEEN SEEN WITH SOME OF MR HELMEYER'S ASSOCIATES BEFORE HE WAS REPORTED MISSING HELPED LEAD POLICE TO MR HELMEYER HE WAS ARRESTED IN EARLY OCTOBER AND CHARGED WITH ABETTING HOMICIDE IN THE CASE OF THE ART DEALER AND WITH ATTEMPTED HOMICIDE IN THE BOMBINGS MR HELMEYER MR HALVORSSEN AND 10 OTHERS FACE A VARIETY OF ADDITIONAL CHARGES RELATED TO THE BOMBINGS THE SUPERIOR COURT JUDGE WHO IS NOW CONSIDERING THE CASE COULD RENDER A VERDICT AT ANY TIME IN ONE OF HIS FEW PUBLIC STATEMENTS SINCE HIS ARREST MR HELMEYER SCOFFED AT THE PORTRAYAL OF HIM AND HIS ALLEGED ASSOCIATES AS MARKET MANIPULATORS WE HAVE ONLY 200000 BETWEEN US MR HELMEYER SHOUTED TO REPORTERS AS HE WAS ESCORTED UNDER HEAVY POLICE GUARD FROM A COURT BUILDING MR HELMEYER INDEED SEEMS AN UNLIKELY MASTERMIND OF SUCH AN AUDACIOUS FINANCIAL CRIME HE BOUNCED A CHECK TO MR VELUTINI FOR ONE OF HIS BROKERAGE TRADES AND EVIDENTLY RENEGED ON PROMISES TO MAKE PAYMENTS TO SOME OF HIS ALLEGED CONFEDERATES INVOLVED IN PLANTING THE BOMBS BUT POLICE SAY THEIR INVESTIGATION WHICH UNCOVERED EVIDENCE OF A PLOT TO BOMB THE CARACAS EXCHANGE ITSELF HAS THEM CONVINCED THAT MR HELMEYER WAS MOTIVATED BY GREED AUTHORITIES ARE INVESTIGATING FINANCIAL INSTITUTIONS BOTH INSIDE AND OUTSIDE OF VENEZUELA FOR FURTHER TRADES LINKED TO THE ACCUSED I'VE SEEN PEOPLE COMMIT BRUTAL MURDERS FOR A SINGLE BOLIVAR COIN SAYS MR JORDAN PETIT SO WHAT IS SO STRANGE ABOUT THIS CASE 9312020165 931202 DARK DAYS THE STAGGERING COST OF DEPRESSION BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL BEFORE HE WAS DIAGNOSED WITH MANIC DEPRESSION FRANK BURGMANN REMEMBERS SHOWING UP FOR HIS JOB AS A FLORIDA BANK INVESTMENT OFFICER CLOSING HIS OFFICE DOOR SITTING AT HIS DESK AND STARING BLEAKLY OUT THE WINDOW HE DID VIRTUALLY NOTHING ELSE ALL DAY EIGHT HOURS LATER HE WENT HOME THIS ROUTINE LASTED FOR WEEKS AT A TIME MY PRODUCTIVITY DROPPED OFF TO ALMOST ZERO MR BURGMANN SAYS I HAD A SECRETARY WHO DID A WONDERFUL JOB OF COVERING FOR ME THE 11 MILLION AMERICANS WITH DEPRESSION AND OTHER MOOD DISORDERS EXACT A HUGE TOLL ON THE US ECONOMY IN LARGE PART DUE TO SUICIDES MISSED DAYS OF WORK AND WASTED DAYS ON THE JOB LIKE FRANK BURGMANN'S BUT DEPRESSION IS SO STIGMATIZED AND MISDIAGNOSED THAT ITS PRECISE COST LONG REMAINED A MYSTERY NOW A NEW STUDY HAS PUT A PRICE TAG ON DEPRESSION IN AMERICA AND THE NUMBERS ARE HIGHER THAN ANYONE EVER IMAGINED THE STUDY BY A TEAM OF ECONOMISTS AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND THE PRIVATE ANALYSIS GROUP FOCUSED ON THREE LEADING TYPES OF MOOD DISORDER MANIC DEPRESSION MAJOR DEPRESSION WHICH DOESN'T INCLUDE ANY EPISODES OF MANIA AND DYSTHYMIA CHRONIC MILD DEPRESSION ALL TOLD THEY COST THE US 437 BILLION A YEAR THE STUDY CONCLUDES THAT NUMBER INCLUDES ONLY 124 BILLION FROM THE COSTS OF TREATING PATIENTS WITH DEPRESSION THE BALANCE REFLECTS THE STAGGERING COSTS OF NEGLECTING OR INADEQUATELY TREATING THE DISEASE INCLUDING 75 BILLION FROM THE LOST INCOME OF SUICIDES AND 117 BILLION FROM MISSED WORK DAYS ONE OF THE BIGGEST CATEGORIES OF ALL THE COST OF LOST PRODUCTIVITY ON DAYS WHEN DEPRESSIVE PATIENTS OFTEN UNAWARE OF THEIR DIAGNOSIS MANAGE TO DRAG THEMSELVES TO WORK MAKING WHAT THEY CALL A CONSERVATIVE GUESS IN THE ABSENCE OF HARD DATA THE RESEARCHERS PROPOSE AN ESTIMATE OF 121 BILLION THE STUDY PUBLISHED IN THE JOURNAL OF CLINICAL PSYCHIATRY INCLUDES SOME DISPUTABLE ESTIMATES AND IS LIKELY TO BECOME A HOTLY DEBATED POLITICAL DOCUMENT ITS AUTHORS ARE UNVEILING IT TODAY AT A HIGHPOWERED NEWS CONFERENCE IN WASHINGTON FLANKED BY PATIENT GROUPS AND TIPPER GORE A TOP CLINTON ADMINISTRATION MENTALHEALTH ADVISER MENTALHEALTH ADVOCATES ARE SEIZING THE STUDY'S EYEPOPPING NUMBERS AS AMMUNITION IN THE FIGHT OVER HEALTHCARE REFORM IF TREATING DEPRESSION IS CHEAPER THAN SUFFERING IT THEN OBVIOUSLY IT'S BAD POLICY TO MAKE TREATMENT DIFFICULT AND UNAVAILABLE SAYS FREDERICK GOODWIN AN AUTHORITY ON DEPRESSION AND DIRECTOR OF THE US GOVERNMENT'S NATIONAL INSTITUTE OF MENTAL HEALTH HE SAYS THAT ONLY 15 OF PRIVATE HEALTHINSURANCE PLANS COVER MENTAL ILLNESS AS GENEROUSLY AS PHYSICAL ILLNESS PRESIDENT CLINTON'S HEALTHCARE BILL HAS DRAWN FIRE FROM MENTALHEALTH ADVOCATES BECAUSE IT IMPOSES SPECIAL LIMITS ON MENTAL TREATMENT THAT DON'T APPLY TO ANY OTHER AREA ANOTHER BIG PROPONENT OF THE STUDY IS ELI LILLY & CO MAKER OF THE BLOCKBUSTER ANTIDEPRESSANT PROZAC THE INDIANAPOLIS PHARMACEUTICAL GIANT HELPED FUND THE STUDY AND ORGANIZE TODAY'S CONFERENCE THE NEW STUDY'S RESULTS ARE STRIKINGLY HIGHER THAN THE FEW EARLIER STABS AT PINNING DOWN THE COSTS OF DEPRESSION A WIDELY CITED 1986 STUDY LED BY EMORY UNIVERSITY PSYCHIATRIST ALAN STOUDEMIRE PEGGED THE ANNUAL COSTS AT 163 BILLION AND A MORE RECENT STUDY BY DOROTHY RICE AT THE UNIVERSITY OF CALIFORNIA CAME UP WITH 304 BILLION ONE REASON THE NEW STUDY'S NUMBERS ARE SO MUCH HIGHER IT IS THE FIRST TO ESTIMATE THE IMMEASURABLE LOSSES FROM IMPAIRED PRODUCTIVITY ON THE JOB WITH NO SOLID DATA FOR THIS CATEGORY THE AUTHORS TOOK A BALLPARK GUESS THAT PATIENTS WHO MAKE IT TO WORK DURING EPISODES OF DEPRESSION OR MANIA LOSE 20 OF THEIR PRODUCTIVITY THE NIMH'S DR GOODWIN ARGUES THAT NOT EVERY PATIENT WITH DEPRESSION IS DYSFUNCTIONAL ENOUGH TO HURT PRODUCTIVITY ON THE JOB AND THAT THE RESULTING 121 BILLION ESTIMATE MAY BE TOO HIGH BUT SOME DEPRESSION PATIENTS CONTEND THAT THE 20 GUESS IS FAR TOO LOW JOSEPH CALDWELL A CHARLESTON WVA LAWYER SAYS THAT BEFORE HE WAS DIAGNOSED WITH MANIC DEPRESSION HE REGULARLY DRANK HIS WAY THROUGH HIS RECURRENT GLOOM COMING INTO WORK HUNG OVER HE SAYS HE COULD DO ONLY ABOUT 50 OF A NORMAL DAY'S WORK WHEN ALCOHOL STOPPED GIVING HIS MOOD A LIFT HE PLUNGED INTO A DEEP DEPRESSION EVEN READING MY MAIL WAS HARD HE RECALLS I'D JUST KIND OF SIT THERE AND TRY TO FIGURE OUT WHAT TO DO NEXT IN ANOTHER AREA DR GOODWIN SAYS THE STUDY MAY UNDERESTIMATE DEPRESSION'S COSTS IT DOESN'T COUNT THE INNUMERABLE TIMES PATIENTS PAY FOR TREATMENT OF VAGUE MEDICAL COMPLAINTS THAT ARE ACTUALLY SYMPTOMS OF DEPRESSION SUCH AS LOSS OF APPETITE OR SLEEP DISORDER ANALYSIS GROUP ECONOMIST PAUL GREENBERG THE STUDY'S LEAD AUTHOR CONCEDES THE STUDY INCLUDES SOME IMPERFECT ESTIMATES BUT HE SAYS WHAT MATTERS IS UNDERSTANDING THE ORDER OF MAGNITUDE THAT MENTAL ILLNESSES CAN BE ON A PAR WITH PHYSICAL ILLNESSES IN TERMS OF THEIR OVERALL BURDEN TO SOCIETY SOME CRITICS ARE SKEPTICAL ABOUT EFFORTS TO BOIL DOWN A COMPLICATED ILLNESS INTO ONE GLEAMING NUMBER UNLESS YOU REALLY UNDERSTAND THE TREATMENT PROCESS AND HOW EXPENDITURES TRANSLATE INTO PAYOFFS THESE STUDIES CAN BE VERY MISLEADING SAYS RICHARD FRANK A JOHNS HOPKINS UNIVERSITY HEALTH ECONOMIST THE NEW STUDY'S AUTHORS INSIST THE PAYOFFS FOR TREATING DEPRESSION CAN INDEED BE HIGH NIMH RESEARCH SUGGESTS THAT 80 TO 90 OF PATIENTS WITH DEPRESSION CAN BE TREATED SUCCESSFULLY BUT ONLY ONE OUT OF THREE PEOPLE WITH THE ILLNESS EVER SEEKS TREATMENT AND EVEN FEWER ARE CORRECTLY DIAGNOSED IN A COMPANION PAPER THE AUTHORS ESTIMATE THAT THE 238 BILLION IN MISSED DAYS OR REDUCED PRODUCTIVITY FROM DEPRESSION AMOUNTS TO ROUGHLY 180 FOR EVERY US EMPLOYEE EMPLOYERS AS A GROUP MAY HAVE A PARTICULAR INCENTIVE TO INVEST IN PROGRAMS THAT COULD REDUCE THE COSTS ASSOCIATED WITH THIS ILLNESS THEY WRITE SOME EMPLOYERS ARE ALREADY DOING JUST THAT TWO YEARS AGO ELECTRONICS GIANT HONEYWELL INC BEGAN OFFERING EMPLOYEES A HEALTH PROMOTION PROGRAM OF MEDICAL TESTS AND SEMINARS ON PREVENTION AND EARLY DETECTION ONE SESSION TEACHES THE EARLY WARNING SIGNS OF DEPRESSION AND OTHER MENTAL ILLNESSES BY PAYING EMPLOYEES 200 TO GO THROUGH THE PROGRAM HONEYWELL HAS LURED NEARLY 70 OF ITS WORK FORCE AT SOME LOCATIONS THERE IS NO QUESTION THAT MENTALHEALTH AND BEHAVIORALHEALTH ISSUES ARE NOT ADEQUATELY ADDRESSED OR FUNDED BY AMERICAN BUSINESS SAYS JOHN BURNS HONEYWELL'S VICE PRESIDENT FOR HEALTH MANAGEMENT RIGHT NOW THERE'S A DISPROPORTIONATE EMPHASIS ON THE FIXWHENBROKE' INVESTMENT AS OPPOSED TO THE PREVENT' INVESTMENT NOTE FIGURES FOR DEPRESSION COVER THREE CLINICAL DIAGNOSES MAJOR DEPRESSION BIPOLAR DISORDER AND DYSTHYMIA ESTIMATES FOR OTHER DISEASES GENERALLY DON'T COUNT LOST PRODUCTIVITY ON THE JOB SOURCE NOVEMBER 1993 JOURNAL OF CLINICAL PSYCHIATRY STUDY BY PAUL GREENBERG ET AL 9312020164 931202 MICHAELS STORES TOTAL SALES RISE IRVING TEXAS MICHAELS STORES INC SAID SAMESTORE SALES WERE FLAT IN NOVEMBER WHILE TOTAL SALES JUMPED 26 TO 779 MILLION FROM 618 MILLION A YEAR EARLIER THE ARTS AND CRAFTS RETAILER SAID SALES SO FAR THIS YEAR TOTAL 4621 MILLION UP FROM 3729 MILLION A YEAR EARLIER SAMESTORE SALES ARE UP 3 FOR THE YEAR 9312020163 931202 INTERNATIONAL JAPANESE VCR EXPORTS PLUNGE TOKYO JAPANESE EXPORTS OF VIDEOCASSETTE RECORDERS IN OCTOBER PLUNGED 30 FROM A YEAR EARLIER TO 12 MILLION UNITS THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN SAID AN ASSOCIATION OFFICIAL SAID THE DECLINE WAS THE SHARPEST ON RECORD WITH JAPANESE MAKERS SHIFTING PRODUCTION OVERSEAS THE OFFICIAL PREDICTED THE DOWNWARD TREND IN EXPORTS WILL CONTINUE 9312020162 931202 CANADIAN STEEL OUTPUT OTTAWA CANADIAN STEEL PRODUCTION TOTALED 266851 METRIC TONS IN THE WEEK ENDED NOV 27 DOWN 68 FROM 286329 TONS IN THE PRECEDING WEEK AND DOWN 58 FROM 283328 TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS THE CUMULATIVE TOTAL FOR 1993 AT NOV 27 WAS 12955879 METRIC TONS UP 36 FROM 12504777 TONS A YEAR EARLIER 9312020161 931202 INTERNATIONAL BAILOUT REPORT BOOSTS SHARES OF EURO DISNEY BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL EURO DISNEY SCA'S STOCK JUMPED 13 ON AN UNCONFIRMED REPORT THAT PARENT WALT DISNEY CO IS PREPARED TO INJECT THREE BILLION FRENCH FRANCS 506 MILLION INTO THE TROUBLED EUROPEAN COMPANY ACCORDING TO THE FRENCH BUSINESS DAILY LA TRIBUNE DESFOSSES DISNEY WHICH OWNS 49 OF EURO DISNEY IS OFFERING TO PUT UP THE CASH IF EURO DISNEY'S BANKERS INJECT AN EQUAL AMOUNT DISNEY AND THE BANKS ARE DISCUSSING A FINANCIAL RESTRUCTURING OF EURO DISNEY WHICH IS BURDENED BY 21 BILLION FRANCS IN DEBT EURO DISNEY SPOKESMAN JACQUESHENRI EYRAUD SAID THE COMPANY WILL NOT SPECULATE ON THE OUTCOME OF THE DISCUSSIONS AND DECLINED TO COMMENT IN CALIFORNIA DISNEY WAS MUM ABOUT THE TALKS A SPOKESMAN FOR BANQUE NATIONALE DE PARIS ONE OF EURO DISNEY'S LEAD BANKS DECLINED TO COMMENT ON THE REPORT OTHER EURO DISNEY BANKERS COULDN'T BE REACHED LAST NIGHT EURO DISNEY'S STOCK SURGED 430 FRANCS TO 3670 FRANCS ON THE NEWS IN LATE TRADING YESTERDAY ON THE PARIS STOCK EXCHANGE STOCKBROKERS WERE QUOTED AS SAYING THAT MUCH OF THE BUYING WAS BY TRADERS SEEKING TO COVER SHORT POSITIONS IN CASE OF A SWIFT RESTRUCTURING EURO DISNEY ON TUESDAY CONFIRMED THAT ITS BANKERS PLAN TO COMMISSION A SPECIAL AUDIT OF THE COMPANY'S BOOKS BUT EURO DISNEY OFFICIALS SAID THE INVESTIGATION WON'T DELAY FINANCIAL RESTRUCTURING PLANS WHICH ARE EXPECTED TO BE COMPLETED BY SPRING 1994 DISNEY HAS PLEDGED TO SUPPORT ITS STRUGGLING SUBSIDIARY THROUGH SPRING THE RESTRUCTURING TALKS ARE WIDELY SEEN AS PITTING DISNEY AGAINST THE MORE THAN 60 INTERNATIONAL BANKS BACKING EURO DISNEY DISNEY IS SAID TO BE TAKING A HARD LINE EVEN THREATENING TO ABANDON THE PARK IN HOPES OF SCARING THE BANKS INTO WRITING OFF A LARGE PORTION OF THE DEBT BUT THE BANKS ARE SAID TO BE BETTING THAT THE GIANT US ENTERTAINMENT COMPANY WANTS TO AVOID THE BLOW TO ITS IMAGE THAT WOULD INEVITABLY RESULT IF THE EUROPEAN PARK ON THE OUTSKIRTS OF PARIS IS FORCED TO CLOSE ON NOV 11 EURO DISNEY REPORTED A LOSS OF 53 MILLION FRANCS FOR THE YEAR ENDED SEPT 30 THE PARK OPENED IN APRIL 1992 AMID THE EUROPEAN RECESSION AND EURO DISNEY HAS BEEN DISAPPOINTED BY VISITORS' SPENDING FRANCE'S HIGH INTEREST RATES ALSO HAVE DRIVEN UP THE COMPANY'S DEBT PAYMENTS 9312020160 931202 LEISURE & ARTS THEATER BROADWAY'S AIDS MELODRAMA PART II BY EDWIN WILSON NEW YORK TONY KUSHNER'S ANGELS IN AMERICA WAS ORIGINALLY ANNOUNCED AS A TWOPART SEVENHOUR DRAMA BUT WHEN IT OPENED IN EARLY MAY ONLY THE FIRST HALF MILLENNIUM APPROACHES WAS PRESENTED PART II WASN'T READY AND WHEN IT WAS THE CAST REHEARSED ONE PLAY WHILE PERFORMING THE OTHER WITH THE RESULT THAT NEARLY 50 PERFORMANCES OF PART I WERE CANCELED NOW OVER SIX MONTHS LATER PART II PERESTROIKA HAS FINALLY ARRIVED AT THE WALTER KERR THEATRE LAST SPRING AFTER I HAD SEEN PART I I HAD NO IDEA WHERE THE CHARACTERS AND THE STORY WOULD GO IN PART II HAVING AT LAST SEEN THE SECOND PART IT IS CLEAR THAT MR KUSHNER WAS NOT ALTOGETHER CERTAIN EITHER IN MILLENNIUM APPROACHES WHICH TAKES PLACE IN THE MID1980S JOE PITT DAVID MARSHALL GRANT A CLERK FOR A FEDERAL JUDGE IS MARRIED TO A NEUROTIC WOMAN HARPER MARCIA GAY HARDEN JOE IS ALSO A PROTEGE OF LAWYER ROY COHN RON LEIBMAN LOUIS IRONSON JOE MANTELLO WHO WORKS IN THE SAME BUILDING AS JOE IS THE HOMOSEXUAL LOVER OF PRIOR WALTER STEPHEN SPINELLA WHO HAS CONTRACTED AIDS NOT ABLE TO COPE WITH PRIOR'S ILLNESS LOUIS LEAVES HIM HAVING IN THE MEANTIME MET JOE WHOM HE BELIEVES IS HOMOSEXUAL WITHOUT REALIZING IT COHN IS ALSO A HOMOSEXUAL BUT VEHEMENTLY DENIES IT AT THE END OF PART I JOE LEAVES HIS WIFE AND HE AND LOUIS FALL IN EACH OTHERS ARMS COHN HAS ALSO CONTRACTED AIDS AND UNDER THE GLEEFUL EYE OF THE GHOST OF ETHEL ROSENBERG KATHLEEN CHALFANT WHOM HE HAD HELPED SEND TO HER DEATH IS CLEARLY DYING HIMSELF PRIOR SEEMINGLY ON HIS DEATHBED IS VISITED BY AN ANGEL ELLEN MCLAUGHLIN WHO CRASHES THROUGH THE CEILING WITH THE WORDS LET THE GREAT WORK BEGIN ONE OF THE OLDEST CONVENTIONS IN DRAMA IS THAT WHEN PLAYS END ALL KINDS OF THINGS ARE IMPLIED WHICH THE AUDIENCE UNDERSTANDS FULL WELL BUT WHICH IT WOULD BE SUPERFLUOUS EVEN ANTICLIMACTIC TO PUT ONSTAGE IN A SEQUEL BUT THIS IS EXACTLY WHAT MR KUSHNER HAS DONE WE KNEW AT THE END OF PART I THAT LOUIS AND JOE WERE GETTING TOGETHER BUT MUCH OF THE BEGINNING OF PART II IS TAKEN UP WITH LOUIS SEDUCING JOE AND THE TWO OF THEM ROMPING IN BED WE ALSO KNEW THAT ROY COHN WAS DYING BUT FOR A GOOD TWOANDAHALF HOURS IN PART II HE IS IN A HOSPITAL BED A TUBE STUCK IN HIS ARM COMPLAINING THAT THERE IS NO HOLD BUTTON ON HIS TELEPHONE HOVERING OVER HIM AGAIN IS THE GHOST OF ETHEL ROSENBERG A PRIM HAT ON HER HEAD AND AN OLDFASHIONED POCKETBOOK CLASPED IN HER TWO HANDS ONE THING I DIDN'T KNOW IS THAT PRIOR DID NOT DIE AT THE END OF PART I NOT HAVING READ OR SEEN PART II I ASSUMED THAT THE ANGEL WHO CRASHED THROUGH THE CEILING WAS THE ANGEL OF DEATH COMING TO TAKE HIM AWAY BUT THAT TURNS OUT NOT TO BE THE CASE AND SO HERE HE IS IN PERESTROIKA WANDERING IN AND OUT OF SCENES LOOKING LIKE THE GRIM REAPER IN A BLACK CLOAK AND HOOD THE ANGEL IS BACK TOO AND THERE IS A LONG SCENE IN WHICH THE ANGEL HAS A VERBAL BATTLE WITH PRIOR AT THE END OF WHICH HE ASKS WHAT ARE YOU IT'S A GOOD QUESTION I DON'T KNOW WHO THE ANGEL IS MAYBE AN AGENT OF DEATH WHO COLLECTS ON THE INSTALLMENT PLAN MAYBE A REPRESENTATIVE OF THE COUNCIL OF PRINCIPALITIES A CELESTIAL GROUP THAT PRIOR VISITS WHO WANT HIM TO BECOME A PROPHET OR MAYBE THE ANGEL IS JUST A FREEFLOATING FIGURE WHO TURNS UP WHENEVER THE PLAYWRIGHT THINKS SHE WOULD BE HELPFUL AS FAR AS THE PRINCIPALS ARE CONCERNED THERE IS A GOOD DEAL OF BACKING AND FILLING AFTER LOUIS AND JOE SPEND A MONTH OF INTENSE LOVEMAKING TOGETHER LOUIS RETURNS TO PRIOR AND JOE RETURNS TO HIS WIFE HARPER BUT NEITHER OF THESE RECONCILIATIONS WORKS AFTER MAKING LOVE TO HARPER ONCE JOE IMMEDIATELY LEAVES AGAIN AND PRIOR QUITE UNDERSTANDABLY IS RELUCTANT TO ACCEPT THE FACILE APOLOGIES OF LOUIS SO FOR A TIME EVERYONE IS WANDERING AROUND AT LOOSE ENDS INTERESTINGLY THE ONE REALLY NEW TWIST IN THE PLOT OF PART II IS THAT THE TWO PEOPLE IN PART I BOTH OF THEM WOMEN WHO WERE THE MOST OUT OF TOUCH WITH THE AUTHOR'S REALITY ARE THE ONES WHO SEEM TO FIND THEMSELVES JOE'S WIFE HARPER WHO WAS ADDICTED TO TRANQUILIZERS AND HAD FANTASIES IN WHICH SHE VISITED ANTARCTICA IN PART II SLOWLY ACHIEVES HER INDEPENDENCE LEAVING JOE AND DEPOSITING IN HIS HAND THE LAST OF HER VALIUMS WHEN JOE'S MOTHER HANNAH PITT KATHLEEN CHALFANT A STRAIGHTLACED MORMON FROM SALT LAKE CITY LEARNED IN PART I THAT HER SON IS HOMOSEXUAL SHE IMMEDIATELY SELLS HER HOUSE IN UTAH AND COMES TO NEW YORK DURING PART II SHE BECOMES PART OF TWO UNLIKELY BUT MEANINGFUL RELATIONSHIPS ONE WITH HER DAUGHTERINLAW HARPER WHOM SHE HELPS RESTORE TO SANITY AND THE OTHER WITH PRIOR IT SHOULD BE UNDERSCORED THAT THE PLAY IS NEVER DULL ONE REASON IS MR KUSHNER'S VIVID IMAGINATION RAZORSHARP HUMOR AND PUNGENT OBSERVATIONS ON MODERN MORES ANOTHER IS THE MARKEDLY IMPROVED DIRECTION OF GEORGE C WOLFE THE SCENES FLOW MUCH BETTER IN PERESTROIKA THAN IN MILLENNIUM APPROACHES AND CERTAIN OF THE ACTORS ARE NOW GIVING EXCELLENT PERFORMANCES ESPECIALLY MR SPINELLA AS PRIOR AND MS CHALFANT AS HANNAH NOW THAT WE HAVE THE TWO PARTS TOGETHER HOW SHOULD WE ASSESS ANGELS IN AMERICA ONE THING REMAINS CONSTANT AND THAT IS THE IMPORTUNING FOR HOMOSEXUAL RIGHTS AND RECOGNITION THIS WAS THE THEME THAT CAME THROUGH MOST FORCEFULLY IN PART I AND IT REMAINS IN PART II THOUGH IT IS PURSUED LESS AGGRESSIVELY AS FOR OBSERVATIONS ON POLITICS THE RELENTLESS JABS AT CONSERVATIVES SO EVIDENT IN PART I HAVE DWINDLED NOTICEABLY IN PART II THE WHOLE TONE IN FACT IS BOTH MORE COMIC AND MORE BENIGN THAN IN PART I THE END TAKES PLACE IN FRONT OF THE BETHESDA FOUNTAIN IN CENTRAL PARK THE ONE WITH THE ANGEL ON TOP GATHERED AROUND ARE PRIOR HANNAH LOUIS AND BELIZE JEFFREY WRIGHT THE NURSE THAT HAD MINISTERED TO COHN AND PRIOR IN ANCIENT JERUSALEM BETHESDA WAS THE POOL OF HEALING WATERS MR KUSHNER SEEMS TO WANT HEALING WATERS TO WASH OVER ALL OF US THE RESTRUCTURING WHICH PERESTROIKA SUGGESTS WOULD INCLUDE FULL RECOGNITION OF HOMOSEXUALS WE ARE NOW CITIZENS OF THE WORLD PRIOR STATES AT THE CLOSE AS WELL AS OTHER MALIGNED GROUPS UNDERSTANDING AND TOLERANCE ARE WORTHY GOALS WHETHER WE NEED A SEVENHOUR DRAMA TO DRIVE HOME THAT POINT IS ANOTHER QUESTION 9312020159 931202 WHO'S NEWS SPS TECHNOLOGIES INC SPS TECHNOLOGIES INC NEWTOWN PA CHARLES W GRIGG 54 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS MANUFACTURER OF AEROSPACE AND INDUSTRIAL EQUIPMENT MR GRIGG WHO WAS PRESIDENT AND CHIEF OPERATING OFFICER AT WATTS INDUSTRIES INC SUCCEEDS JOHN R SELBY 64 WHO IS RETIRING 9312020158 931202 ALEXANDER & ALEXANDER PURCHASE NEW YORK ALEXANDER & ALEXANDER SERVICES INC SAID IT PURCHASED CLAY & PARTNERS FOR ABOUT 41 MILLION IN STOCK EXPANDING ITS CONSULTING SERVICES IN EUROPE CLAY & PARTNERS WHICH WAS CLOSELY HELD IS THE THIRDLARGEST UK PARTNERSHIP OF ACTUARIES IT PROVIDES EMPLOYEE BENEFITS AND RELATED CONSULTING SERVICES TO CORPORATE CLIENTS ALEXANDER & ALEXANDER IS AN INSURANCE BROKERAGE RISK MANAGEMENT AND HUMAN RESOURCES CONCERN 9312020157 931202 FREMONT REDEEMS DEBENTURES SANTA MONICA CALIF FREMONT GENERAL CORP SAID IT COMPLETED THE REDEMPTION OF ITS 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2011 HOLDERS OF THE 575 MILLION OF DEBENTURES OUTSTANDING HAD THE OPTION OF CONVERTING THE DEBENTURES INTO COMMON SHARES AT A PRICE OF 2417 A SHARE A TOTAL OF 29 MILLION OF DEBENTURES WERE TENDERED IN EXCHANGE FOR 12 MILLION COMMON SHARES THE FINANCIAL SERVICES COMPANY SAID 9312020156 931202 LETTERS TO THE EDITOR INCREDIBLE YELLOW STOCKINGED MALVOLIOS MAY A MEMBER OF THE HOUSE OF LORDS STAYING IN THE HEART OF NEW YORK CITY REPLY TO THE AMAZING NOV 9 PAGEONE ARTICLE NOBLE LIFERS THE HOUSE OF LORDS IS AN ANACHRONISM THAT IS WITHOUT PEER THAT MEMBER OF THE HOUSE OF LORDS HAPPENS TO BE ME I AM THEREFORE QUITE WILLING TO ADMIT IN YOUR WORDS TO BEING AN ACCIDENTAL POLITICIAN ALTHOUGH I AM NOT SURE WHERE I AM EXPECTED TO AWAIT THE ACCIDENT LET US BEGIN AT THE BEGINNING OF YOUR ARTICLE IT SEEMS THAT YOUR JAMIE BLANDFORD HAS LED FOR SOME TIME AN UNPREDICTABLE IF NOT A LITTLE TURBULENT LIFE IT IS BY NO MEANS CLEAR HOWEVER THAT THIS YOUNG MAN WILL EVER RECEIVE THE WRIT OF SUMMONS TO ATTEND THE HOUSE OF LORDS THUS NOT ONLY DO YOU LAUNCH YOUR ARTICLE ON THE HOUSE OF LORDS WITH A YOUNG MAN WHO IS NOT A MEMBER OF THE HOUSE AND MAY NEVER BE BUT YOU GO ON TO CITE THE CONDUCT OF ANOTHER ERRANT ENGLISHMAN WHO ALLEGEDLY HAD A PENCHANT FOR BELLY DANCERS BUT WHO HAS NEVER SHOWED UP IN THE HOUSE FOR THE PAST 20 YEARS AND IF HE HAD WAS LIKELY TO HAVE BEEN ARRESTED ON ARRIVAL IN THE UK BY THE BRITISH POLICE PEERS OF THE REALM HAVE NO IMMUNITY FROM ARREST LONG BEFORE HE REACHED THE PALACE OF WESTMINSTER LATER IN THE ARTICLE YOU CITE ACTS OF MISBEHAVIOR IN THIS CASE MURDERS APPARENTLY PERPETRATED THREE OR FOUR HUNDRED YEARS AGO BY ANCESTORS OF LORD CAITHNESS IT IS A LITTLE CURIOUS TO KNOW WHAT THIS HAS TO DO WITH THE PRESENT LORD CAITHNESS A VERY ABLE AND MUCH RESPECTED FRONT BENCH MINISTER AND THE PRESENT HOUSE OF LORDS HAVE YOU ANYTHING TO SAY ABOUT YOUR ANCESTORS IN THOSE BARBAROUS DAYS OF LONG AGO THEIR BEHAVIOR WHETHER MURDEROUS OR NOT HAS AS LITTLE RELEVANCE TO THE PERFORMANCE OF YOUR JOURNALISM AS DOES THE BEHAVIOR OF LORD CAITHNESS'S ANCESTORS TO THE PERFORMANCE OF HIS MINISTERIAL RESPONSIBILITIES I AM SURE IT IS QUITE POSSIBLE TO CITE ALL SORTS OF CITIZENS OF THIS COUNTRY AND IN NEW YORK CITY THERE ARE ALL SORTS OF CITIZENS WHO HAVE CONNECTIONS WITH CONGRESS BUT NO RIGHT TO PARTICIPATE IN ITS HONORABLE PROCEEDINGS YOU MAY ASSERT THAT THERE IS NOT A HEREDITARY RIGHT TO SIT IN CONGRESS BUT CASTING A FEW THOUGHTS OVER THE GREAT PATRICIAN AND NONPATRICIAN FAMILIES OF THIS COUNTRY PERHAPS YOU SHOULD BE A LITTLE CAREFUL ABOUT THAT ASSERTION AS A HEREDITARY PEER WHO HAS DURING THE PAST 20 YEARS REGULARLY PARTICIPATED IN THE HOUSE OF LORDS BOTH WHEN LIVING IN THIS COUNTRY AND IN MY OWN I SUPPORT THE PARLIAMENT ACT OF 1911 AND WOULD WISH THE HOUSE OF LORDS TO BE RECONSTITUTED THE QUESTION IS NOT WHETHER THE HOUSE OF LORDS SHOULD BE REFORMED BUT HOW YOU QUOTE EXTENSIVELY FROM AN INCREDULOUS WRITER OF THE GUARDIAN NEWSPAPER WHO HAS INDEED MADE AN INCREDIBLE CLAIM OVER THE MAASTRICHT BILL AS IT HAPPENS I PARTICIPATED AT EVERY STAGE LAST SUMMER DURING THE PASSAGE OF THE MAASTRICHT BILL AT THE HOUSE OF LORDS I AM THUS ONE OF THE POLTROONS WHICH ACCORDING TO WEBSTER'S DICTIONARY ARE SPIRITLESS COWARDS BUT I GUESS THE INCREDULOUS WRITER FROM THE GUARDIAN WAS SEEKING TO IDENTIFY BUFFOONS OR SOME YELLOW STOCKINGED MALVOLIOS OR THE LIKE WHO WERE INCREDIBLY THAT WORD AGAIN ALLOWED TO DEBATE THESE IMPORTANT MATTERS SPLENDID BUT ACTUALLY NOTWITHSTANDING MY HEREDITY I HAD SOMETHING TO CONTRIBUTE I SPECIALIZE IN EUROPEAN COMMUNITY LAW AND HAVE TAKEN A MAJOR CASE TO THE EUROPEAN COURT BETTER STILL I WAS IN GOOD COMPANY WITH THE OTHER POLTROONS OR BUFFOONS OR YELLOW STOCKINGED MALVOLIOS THESE INCLUDED THE FORMER PRESIDENT OF THE EUROPEAN COMMISSION LORD JENKINS A FORMER VICE PRESIDENT OF THE EUROPEAN COMMISSION RESPONSIBLE FOR THE 1992 PROGRAM LORD COCKFIELD AND THREE FORMER EC COMMISSIONERS LORDS THOMSON RICHARD AND CLINTONDAVIS IT IS NOT OFTEN THAT I AM CALLED A POLTROON OR BUFFOON OR YELLOW STOCKINGED MALVOLIO BUT IN THIS COMPANY I RATHER LIKE IT IN ANOTHER PASSAGE YOU ARGUE THAT THE 35 MILLION IT COSTS TO OPERATE THE HOUSE OF LORDS ANNUALLY IS REASON ENOUGH FOR ABOLISHING IT IN THE OFFICIAL ACCOUNTS OF THE HOUSE OF LORDS FOR THE YEAR ENDED MARCH 31 1993 OUR TOTAL ANNUAL RUNNING COSTS ARE SET OUT AT 22139000 POUNDS THIS ROUGHLY HITS YOUR FIGURE OF 35 MILLION WHAT HOWEVER YOU OMIT TO IDENTIFY IS WHERE THAT COST LIES IT INCLUDES FOR EXAMPLE THE COSTS OF THE JUDICIAL OFFICE WHICH IS THE OFFICE RESPONSIBLE FOR THE LORDS SITTING IN ITS JUDICIAL CAPACITY THE ABOLITION THEREFORE OF OUR SUPREME COURT WHICH WOULD GO WITH THE ABOLITION OF THE HOUSE OF LORDS IS NOT A PROPOSAL THAT WOULD CARRY FAVOR IN ENGLAND ANY MORE THAN IT WOULD DO IN THIS COUNTRY IN FACT THE GREATEST COST IN RUNNING THE LORDS IS SECURITY WHICH IS RECORDED FOR THE YEAR ENDED MARCH 31 1993 AT NEARLY 67 MILLION POUNDS THIS IS ALL PART OF THE MAMMOTH TASK OF PROTECTING THE WHOLE OF THE PARLIAMENT BUILDING IN THE SAME YEAR THE EXPENSES GRANTED TO PEERS CAME TO ONLY 45 MILLION POUNDS THE TRUTH IS THAT THE LORDS WHOSE LENGTH OF SITTINGS IN 1989 AND 1990 THEY WERE UP TO 1100 HOURS PER ANNUM ARE THE SECOND LARGEST TO THE HOUSE OF COMMONS OF ANY PARLIAMENTARY CHAMBER THROUGHOUT THE DEMOCRATIC WORLD AND WHO USUALLY SPEND WELL OVER 50 OF THEIR TIME WORKING ON PUBLIC BILLS ARE THE BEST VALUE FOR MONEY FOR A LEGISLATIVE BODY ANYWHERE IN THE WESTERN WORLD THE ATTENDANCE ALLOWANCE WHICH IS A REIMBURSEMENT FOR EXPENSES INCURRED COMES ON CURRENT RATES OF EXCHANGE TO 45 A DAY AND NOT 200 A DAY THERE ARE OTHER REIMBURSEMENTS AT VERY MODERATE LEVELS FOR PEERS WHO NEED SECRETARIAL SERVICE OR WHO WITHOUT ACCOMMODATION IN LONDON HAVE TO STAY OVERNIGHT IN TOWN WHEN ATTENDING PARLIAMENT BUT THESE REIMBURSEMENTS IN NO SENSE PROVIDE A TAX FREE BONUS OF 30000 PER ANNUM FOR REGULAR ATTENDERS OF THE HOUSE CURRENTLY THE AVERAGE DAILY ATTENDANCE IN THE HOUSE OF LORDS IS 383 PEERS AND SOMETIMES THERE ARE MANY MORE WHICH HARDLY FITS INTO YOUR DESCRIPTION OF ABYSMAL I ACCEPT THAT IN THE WORDS OF MY COLLEAGUE LORD DENHAM FOR MANY YEARS GOVERNMENT CHIEF WHIP THAT THE HOUSE OF LORDS IS DIFFICULT TO DEFEND EXCEPT THAT IT HAPPENS TO WORK UNTIL WE CAN THINK OF SOMETHING WITH WHICH SATISFACTORILY TO REPLACE IT 9312020155 931202 MILLER BREWING TO CUT WORK FORCE BY 133 SHUTTER ONE BREWERY NEW YORK PHILIP MORRIS COS' MILLER BREWING SUBSIDIARY PLANS TO ELIMINATE 1200 JOBS OR 133 OF ITS WORK FORCE AND CLOSE ONE OF ITS BREWERIES AS PART OF THE BROAD COSTCUTTING PROGRAM ANNOUNCED BY PHILIP MORRIS LAST WEEK WITH BEER SALES SLUGGISH AND INDUSTRY PROFITS UNDER PRESSURE FROM RAMPANT DISCOUNTING MILLER IS THE LATEST MAJOR BREWER TO ANNOUNCE JOB CUTS IN SEPTEMBER ANHEUSERBUSCH COS SAID IT PLANNED TO CUT ITS SALARIED WORK FORCE BY 1200 OR 10 AND ADOLPH COORS CO RECENTLY CUT 500 WORKERS FROM ITS PAYROLLS THERE IS NO REAL GROWTH IN THE BEER BUSINESS AND THERE IS NOT MUCH ABILITY TO RAISE PRICES SO YOU HAVE TO DRIVE COSTS OUT OF THE SYSTEM SAID BENJAMIN STEINMAN PRESIDENT OF BEER MARKETER'S INSIGHTS A NEWSLETTER MR STEINMAN SAID BEER SHIPMENTS WERE FLAT FOR THE FIRST NINE MONTHS OF THE YEAR AFTER LESS THAN A 1 INCREASE IN 1992 MILLER THE NO 2 BREWER AFTER ANHEUSERBUSCH RECENTLY HAS DONE SLIGHTLY BETTER THAN ITS RIVALS IN PART BECAUSE MILLER ACQUIRED THE US MARKETING RIGHTS TO MOLSON BEER EARLIER IN THE YEAR MILLER ALSO HAS BENEFITED FROM AGGRESSIVE DISCOUNTING OF ITS MILLER HIGH LIFE BRAND SAID MR STEINMAN THE CLOSING OF MILLER'S 17YEAROLD FULTON NY BREWERY WILL ELIMINATE 900 JOBS THE BREWERY HAD BEEN OPERATING AT ABOUT 62 CAPACITY SAID A MILLER SPOKESWOMAN MILLER WILL HAVE SIX REMAINING MAJOR BREWERIES AND FULTON'S PRODUCTION WILL BE SHIFTED TO MILLER'S PLANTS IN OHIO NORTH CAROLINA AND GEORGIA IN ADDITION MILLER PLANS TO ELIMINATE ABOUT 300 WHITECOLLAR WORKERS AT ITS MILWAUKEE HEADQUARTERS AND AT ITS OTHER BREWERIES THE JOB CUTS ARE PART OF PHILIP MORRIS'S PLAN TO REDUCE ITS WORLDWIDE WORK FORCE BY 8 OR 14000 JOBS EACH OF PHILIP MORRIS'S OPERATING UNITS SUCH AS KRAFT GENERAL FOODS WILL ANNOUNCE THEIR CUTS SEPARATELY LAST WEEK PHILIP MORRIS ELIMINATED 900 DOMESTIC TOBACCO JOBS 9312020154 931202 CROWN AMERICA BUYS O&Y LAND FORT LAUDERDALE FLA A TORONTOBASED REALESTATE DEVELOPER AND FORMER PARTNER OF PAUL REICHMANN HAS PURCHASED 25 ACRES OF LAND IN A FORT LAUDERDALE CORPORATE PARK FROM OLYMPIA & YORK COS USA FOR AN UNDISCLOSED SUM CROWN AMERICA DEVELOPMENTS BASED IN FORT LAUDERDALE AND OWNED AND OPERATED BY THE SHAPIRO FAMILY OF TORONTO ALREADY HAD PURCHASED FROM OLYMPIA & YORK TWO OFFICE BUILDINGS AND A RETAIL CENTER IN THE 110ACRE DEVELOPMENT CALLED CORPORATE PLAZA AT CYPRESS CREEK THE SHAPIROS WERE PARTNERS WITH THE REICHMANN FAMILY THE FORMER CONTROLLING SHAREHOLDERS OF OLYMPIA & YORK DEVELOPMENTS LTD ON A NUMBER OF PROJECTS IN THE SOUTHEAST THE PARTNERSHIP WAS DISSOLVED IN 1992 OLYMPIA & YORK'S US SUBSIDIARY HAS BEEN SHEDDING ASSETS AS PART OF A DEBT RESTRUCTURING EFFORT 9312020152 931202 WHO'S NEWS HOSPITALITY FRANCHISE SYSTEMS INC HOSPITALITY FRANCHISE SYSTEMS INC PARSIPPANY NJ MARTIN L EDELMAN THE SENIOR PARTNER WITH THE NEW YORK LAW FIRM BATTLE FOWLER WAS ELECTED A DIRECTOR OF THIS HOTEL FRANCHISER MR EDELMAN 52 YEARS OLD FILLS ONE OF THE SIX BOARD SEATS VACATED BY DIRECTORS AFFILIATED WITH BLACKSTONE CAPITAL PARTNERS LP WHO RESIGNED FOLLOWING THE SALE OF MOST OF BLACKSTONE'S STAKE IN HOSPITALITY FRANCHISE THE DIRECTORS WERE PETER G PETERSON STEPHEN A SCHWARZMAN JAMES R BIRLE MARK T BALLOGLY MARK J KENYON AND JAMES J MOSSMAN 9312020151 931202 WHO'S NEWS AMERICAN BRANDS INC AMERICAN BRANDS INC OLD GREENWICH CONN PETER M WILSON 52 YEARS OLD WAS ELECTED A DIRECTOR AND TO THE EXECUTIVE COMMITTEE OF THIS TOBACCO PRODUCTS DISTILLED SPIRITS AND FINANCIAL SERVICES CONCERN EFFECTIVE FEB 1 MR WILSON DEPUTY CHAIRMAN OF THE COMPANY'S BRITISH UNIT GALLAHER LTD ALSO WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OF THE UNIT SUCCEEDING ANTHONY D HOUSEHAM 61 WHO IS RETIRING EFFECTIVE JAN 31 9312020150 931202 INTERNATIONAL MONTEDISON CAPITAL INCREASE MILAN SHAREHOLDERS OF MONTEDISON SPA THE AGROINDUSTRIAL AND CHEMICAL SUBSIDIARY OF FERRUZZI FINANZIARIA SPA APPROVED A CAPITAL INCREASE THAT WOULD DOUBLE THE COMPANY'S NOMINAL CAPITAL FROM 2916 TRILLION LIRE 171 BILLION TO 5833 TRILLION LIRE THE COMPANY SAID THE MONTEDISON HOLDERS ALSO FOLLOWED IN THE FOOTSTEPS OF FERRUZZI HOLDERS BY VOTING TO SUE ACCOUNTING FIRM PRICE WATERHOUSE FOR A BREACH OF ITS FIDUCIARY DUTIES 9312020149 931202 KN ENERGY TO ADD RESERVES LAKEWOOD COLO KN ENERGY INC SAID IT AGREED TO BUY A STAKE IN OIL AND NATURAL GAS PROPERTIES IN COLORADO AND WYOMING THAT WILL ADD THE EQUIVALENT OF 50 BILLION CUBIC FEET OF NATURAL GAS TO ITS RESERVES KN ENERGY A NATURALGAS CONCERN SAID IT WILL BUY INTERESTS IN THE PROPERTIES FROM A UNIT OF PUBLIC SERVICE CO OF COLORADO DENVER TERMS WEREN'T DISCLOSED BUT KN ENERGY SAID IT EXPECTS TO COMPLETE THE ACQUISITION EARLY NEXT YEAR 9312020148 931202 LCI WITHDRAWS STOCK OFFERING MCLEAN VA LCI INTERNATIONAL INC SAID IT WITHDREW ITS PRIMARY AND SECONDARY OFFERING OF 35 MILLION SHARES THAT HAD BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOV 10 THE COMPANY SAID ITS STOCK PRICE DID NOT ADEQUATELY REFLECT APPROPRIATE VALUE IN NASDAQ STOCK EXCHANGE TRADING YESTERDAY LCI SHARES ROSE 150 TO 3450 THE COMPANY HAS SEVERAL OTHER MORE ECONOMICALLY ATTRACTIVE WAYS TO ADEQUATELY FINANCE CONTINUED RAPID GROWTH AS WELL AS REDEEM ITS SENIOR SECURED DEBT IN THE VERY NEAR TERM LCI CHAIRMAN H BRIAN THOMPSON SAID IN A STATEMENT 9312020147 931202 WHO'S NEWS HARLEYSVILLE GROUP INC HARLEYSVILLE GROUP INC HARLEYSVILLE PA WALTER R BATEMAN 45 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS REGIONAL PROPERTY/CASUALTY INSURANCE HOLDING COMPANY AND OF HARLEYSVILLE MUTUAL INSURANCE CO WHICH IS MANAGED BY THE HOLDING COMPANY MR BATEMAN WHO HAD BEEN CHIEF OPERATING OFFICER CONTINUES AS PRESIDENT OF THE TWO COMPANIES AS CHIEF EXECUTIVE HE SUCCEEDS BRADFORD W MITCHELL 66 WHO WILL RETIRE FROM THAT POSITION DEC 31 BUT REMAIN CHAIRMAN OF THE TWO BUSINESSES 9312020146 931202 MEDICAL CARE PRESSURED BY ITS HOLDERS AGREES TO MEETING WITH SURGICAL CARE DALLAS MEDICAL CARE AMERICA INC ASSAILED BY SHAREHOLDERS UNHAPPY WITH ITS REBUFF OF SUITOR SURGICAL CARE AFFILIATES INC SAID IT WOULD BE WILLING TO MEET WITH SURGICAL CARE ABOUT A POSSIBLE MERGER BUT MEDICAL CARE SAID ITS WILLINGNESS TO MEET DOESN'T MEAN IT WILL RECONSIDER ITS REJECTION OF SURGICAL CARE'S OFFER IN OCTOBER TO ACQUIRE MEDICAL CARE FOR ALMOST 1 BILLION IN STOCK THE TWO COMPANIES OPERATE OUTPATIENTSURGERY CENTERS IN A LETTER TO JOEL GORDON SURGICAL CARE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER DONALD STEEN MEDICAL CARE'S CHIEF EXECUTIVE SAID HE HOPED TO MEET WITH MR GORDON BY MONDAY SURGICAL CARE SAID IT WAS MOVING TO SET UP A MEETING SOON DAVID H GLASER MANAGING DIRECTOR AT BEAR STEARNS & CO WHICH IS SERVING AS AN ADVISER TO SURGICAL CARE SAID THE COMPANY IS HAPPY AND HOPEFUL ABOUT MEDICAL CARE'S OVERTURE MEDICAL CARE'S ANNOUNCEMENT HELPED BOOST ITS STOCK 1 OR 5 YESTERDAY TO 21 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SURGICAL CARE SHARES ALSO LISTED ON THE BIG BOARD ROSE 25 CENTS TO CLOSE AT 18375 BEFORE SURGICAL CARE'S OFFER MEDICAL CARE STOCK HAD BEEN TRADING AT ABOUT 17 A SHARE IN AN INTERVIEW MR STEEN SAID HIS LETTER WAS A RESPONSE TO THE WISHES OF A SIGNIFICANT NUMBER OF OUR SHAREHOLDERS WHOM HE DESCRIBED AS STRONGLY OPINIONATED THAT HE SHOULD HOLD DISCUSSIONS WITH SURGICAL CARE MEDICAL CARE SHAREHOLDERS REPRESENTING 43 OF THE COMPANY'S SHARES OUTSTANDING HAVE WRITTEN OR HAVE PROMISED TO WRITE TO MEDICAL CARE'S BOARD EXPRESSING THEIR DISPLEASURE WITH ITS HANDLING OF SURGICAL CARE'S PROPOSAL ACCORDING TO A PERSON FAMILIAR WITH THE SITUATION MR STEEN SAID HIS LETTER TO MR GORDON ISN'T INCONSISTENT WITH MEDICAL CARE'S PREVIOUS STATEMENTS THAT IT WOULD CONSIDER A SWEETENED BID FROM SURGICAL CARE I'M NOT MEETING WITH HIM JUST TO PLACATE THE SHAREHOLDERS I'M INTERESTED IN HIS VIEWS MR STEEN SAID I'M GOING TO THE MEETING WITH AN OPEN MIND PREVIOUSLY SURGICAL CARE HAD SAID IT WOULDN'T BE WILLING TO RAISE ITS BID BEFORE IT COULD MEET WITH MEDICAL CARE AND BEGIN TO EXAMINE ITS BOOKS IN AN INTERVIEW JONATHAN BOND MEDICAL CARE'S SENIOR VICE PRESIDENT SAID THE ISSUE OF GIVING SURGICAL CARE ACCESS TO MEDICAL CARE'S BOOKS PROBABLY WOULD BE DISCUSSED AT ANY MEETING BETWEEN MESSRS STEEN AND GORDON BUT MR STEEN SAID IT WOULD BE ATYPICAL FOR A COMPANY TO PROVIDE ACCESS TO ITS BOOKS BEFORE RECEIVING A SUITABLE OFFER 9312020145 931202 MUTUAL FUNDS DREYFUS STARTS LOOKING TO FUTURE BUT MISSED LION'S SHARE OF BOOM BY ROBERT MCGOUGH AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE LION IS CORNERED NOW THE QUESTION IS WILL IT EAT OR BE EATEN KNOWN FOR ITS LION LOGO DREYFUS CORP HAS MISSED OUT ON MUCH OF THE MUTUALFUND BOOM AND ANALYSTS SAY IT FACES INTENSIFYING PRESSURE TO SELL ITSELF TO ANOTHER COMPANY DREYFUS STOCK RECENTLY HIT 4725 ON NEWS OF ITS SCUTTLED MERGER TALKS WITH MELLON BANK CORP SO WHY HAVE THE SHARES DRIFTED BACK DOWN TO 44 EVEN THOUGH SOME PEOPLE ESTIMATE THEY MIGHT COMMAND 50 IN AN ACQUISITION MAYBE IT'S BECAUSE THE LION MIGHT ESCAPE BY DEVOURING SOMEBODY ELSE IT WILL BUY OR SELL OUT SAYS STEVEN EISMAN AN ANALYST AT OPPENHEIMER & CO DREYFUS IS LEAVING ITSELF ROOM TO JUMP EITHER WAY I DON'T KNOW WHICH WAY IT'S LIKELY TO GO WHETHER IT WILL BUY OR BE BOUGHT SAYS JOSEPH DIMARTINO DREYFUS PRESIDENT WE'RE LOOKING AT A NUMBER OF POSSIBLE COMBINATIONS RIGHT NOW IN WHICH DREYFUS WOULD MAKE AN ACQUISITION TO ROUND OUT ITS PRODUCT LINE HE ADDS DREYFUS PROFESSES A BUSINESSASUSUAL STANCE SAYING IT PLANS TO HIRE SOME NEW FUND MANAGERS NEXT YEAR FOR FUNDS CURRENTLY OVERSEEN BY DREYFUS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HOWARD STEIN BUT IT ISN'T RULING OUT A MERGER MR DIMARTINO SAYS IF THERE IS SOMETHING HAPPENING IN THE INTERIM THAT MAKES COMPELLING SENSE WE HAVE TO LOOK AT IT TAKEOVER WATCHERS ARE HESITANT TO PREDICT THE NEXT MOVE BY MR STEIN WHO AT AGE 67 MAY BE SENSING THE END OF HIS CHANCE TO GO OUT IN A BLAZE OF GLORY AT DREYFUS WHILE MR STEIN AND MELLON CHAIRMAN FRANK CAHOUET ARE LONGTIME FRIENDS SOME PEOPLE CLOSE TO THE MELLON DEAL SAY THERE'S ONLY A SMALL CHANCE IT WILL BE REVIVED INSTEAD MANY EXPECT DREYFUS TO BUY ANOTHER FUND GROUP IN THE LONG RUN THIS IS A MARKETSHARE GAME SAYS JON FOSSEL CHAIRMAN OF RIVAL FUND COMPANY OPPENHEIMER MANAGEMENT CORP IF YOU'RE NOT BUILDING MARKET SHARE YOU'RE DYING DREYFUS IS A MASSIVE UNDERMANAGED CASH POT MR FOSSEL ADDS THERE'S A HUGE OPPORTUNITY THAT'S NOT BEEN REALIZED WITH DREYFUS WITH 718 MILLION OF CASH AND MARKETABLE SECURITIES IN THE TILL THEY'VE BEEN WAY TOO CONSERVATIVELY MANAGED DESPITE ITS FAMOUS NAME CRITICS SAY DREYFUS HAS BEEN LAGGING IN THE DECADELONG CHASE FOR INVESTORS WHO HAVE BEEN THROWING MONEY INTO STOCK AND BOND FUNDS THE COMPANY'S FOCUS ON BLAND SAFE MONEYMARKET FUNDS AT A TIME OF MINUSCULE YIELDS HAS ALLOWED COMPETITORS TO GRAB MARKET SHARE ITS CASH HOARD WAITS TO BE TAPPED DOING LITTLE FOR EARNINGS CRITICS PLACE THE BLAME AT THE FEET OF MR STEIN THE AUSTERE MONEY MANAGER WHO HAS BEEN DREYFUS'S CHAIRMAN AND CEO SINCE 1970 AN AVOWED BEAR HE HAS BEEN WAITING FOR FINANCIAL MARKETS TO COLLAPSE WHILE OTHER FUND GROUPS PROFITED FROM THE BOOM MR STEIN WON'T COMMENT ON THE TALK ABOUT HIS AGE BEING A POSSIBLE MOTIVATION FOR DISCUSSING MERGERS HE SAYS HE USUALLY GETS PHONE CALLS FROM REPORTERS ABOUT DREYFUS'S SLOW GROWTH JUST BEFORE THERE'S A STOCKMARKET DECLINE PUT IT DOWN IN YOUR CALENDAR HE ADVISES WE MISSED OUT ON OTHER MOMENTS IN THE MARKET THAT TURNED OUT TO BE FADS MR STEIN SAYS THERE'S A TIME WHEN YOU MISS A MARKET AND MISS AN OPPORTUNITY BUT ONE SHOULD BEWARE OF COMING IN FOR THE LAST EIGHTH OR HOLDING OUT FOR THE LAST FEW DOLLARS OF PROFIT I'VE BEEN BEARISH SINCE I QUIT THE VIOLIN DECADES AGO MR STEIN ADDS BUT AT DREYFUS SOMEHOW THINGS KEEP MOVING FORWARD IN A CONSERVATIVE WAY MORGAN STANLEY ANALYST MICHAEL BLUMSTEIN SAYS FOR YEARS EVERYONE HAS BEEN SPECULATING AND TRYING TO FIGURE OUT WHAT THIS COMPANY IS GOING TO DO DREYFUS MIGHT JUST KEEP SITTING ON ALL THAT CASH BUT OTHERS THINK THE ODDS ARE BETTER THAT THIS TIME DREYFUS WILL ACT ONE SUCH ANALYST IS MR EISMAN AT OPPENHEIMER & CO WHICH ISN'T RELATED TO OPPENHEIMER MANAGEMENT HE WAS NEGATIVE FOR A LONG TIME ON THE STOCK BUT UPGRADED IT TO MARKET PERFORMER FROM UNDERPERFORMER IN LIGHT OF A POSSIBLE MERGER THERE WERE SIGHS OF RELIEF AMONG DREYFUS EXECUTIVES WHEN THE MERGER TALKS FELL THROUGH THE POSSIBILITY OF AN ACQUISITION BY COSTCONSCIOUS MELLON LED SOME EXECUTIVES TO FEAR FOR THEIR JOBS AN ISSUE THAT SOME PEOPLE SAY HELPED SCUTTLE THE TALKS ALTHOUGH DREYFUS DENIES IT PRICE WAS ALSO SAID TO BE AN ISSUE ALTHOUGH DREYFUS DISPUTES THIS TOO THE MELLON TALKS ALERTED THE WORLD THAT DREYFUS COULD BE BOUGHT BANKS IN PARTICULAR ARE LOOKING TO EXPAND IN THE MUTUALFUND BUSINESS BECAUSE THAT'S WHERE THEIR CUSTOMERS ARE GOING WITH PROCEEDS FROM LOWYIELDING CERTIFICATES OF DEPOSIT ANY TAKEOVER PROBABLY WOULD BE FRIENDLY FUND MANAGERS HAVE A POISON PILL OF SORTS IN THAT THEY DON'T TECHNICALLY OWN THE MUTUAL FUNDS THEY MANAGE THE MANAGEMENT FIRM IS HIRED BY THE BOARD OF DIRECTORS OF A MUTUAL FUND AND CAN BE FIRED AS WELL SO ANY HOSTILE ACQUIRER OF DREYFUS WOULD RISK THAT THE DIRECTORS OF ITS 150PLUS MUTUAL FUNDS MIGHT VOTE TO FIRE THE MANAGEMENT OF THE FUNDS AND HIRE SAY FIDELITY INVESTMENTS INSTEAD ANY INITIALLY HOSTILE SUITOR WOULD HAVE TO WIN OVER THE MUTUALFUND BOARD MEMBERS SAYS WOODROW CAMPBELL A LAWYER AT DEBEVOISE & PLIMPTON IT WOULD BE A LONG DRAWNOUT PROCESS WHILE TAKEOVER RUMORS CONTINUE TO SWIRL THE MORE LIKELY OUTCOME IS FOR DREYFUS TO BUY ANOTHER MUTUALFUND GROUP ACCORDING TO PEOPLE CLOSE TO THE SCUTTLED TALKS DREYFUS HAS FAILED TO GROW A LARGE STABLE OF STOCK FUNDS AND TO A LESSER EXTENT TAXABLEBOND FUNDS ITS SHARE OF THE MUTUALFUND INDUSTRY'S ASSETS UNDER MANAGEMENT HAS FALLEN TO LESS THAN 4 FROM MORE THAN 5 IN 1985 MR STEIN ORIGINALLY ACHIEVED PROMINENCE AS A DREYFUS STOCKFUND MANAGER HE RUNS CAPITAL GROWTH AND HAS A HAND IN FOUR OTHER FUNDS NOW AWAITING APPOINTMENT OF NEW MANAGERS HIS MOST BRILLIANT MOVE AS A CORPORATE CHIEF WAS TO CATCH THE BOOM IN MONEYMARKET FUNDS IN THE 1970S BUT IN RECENT YEARS HIS PERPETUAL BEARISHNESS CAUSED HIM TO NEGLECT THE RAPID EXPANSION OF STOCK AND BOND FUNDS ENGAGED IN BY RIVALS SUCH AS FIDELITY AND VANGUARD GROUP THE FUNDS HE DID BRING OUT OFTEN WERE DEFENSIVE ONES THAT FARED WELL IN MARKET DECLINES BUT UNDERPERFORMED IN THE RECENT LONG BULL MARKETS MR STEIN HAS ENGAGED IN MORE OF THE DAYTODAY MANAGEMENT AT DREYFUS THAN CHIEFS OF MANY OTHER LARGE FUND FIRMS THE FORMER JUILLIARD VIOLIN STUDENT TAKES SPECIAL INTEREST IN THE FIRM'S ADVERTISING BUT THERE ARE SIGNS HE HAS BEEN CUTTING BACK YESTERDAY DREYFUS'S CORPORATE BOARD MET IN NEW YORK BUT MR STEIN WAS AT HIS HOME IN CALIFORNIA DREYFUS SAYS IT'S COMMON PRACTICE FOR MR STEIN TO BE OUT OF TOWN FOR THE YEAREND BOARD MEETING DREYFUS HAS SUCH HIGHLY RESPECTED STOCKFUND MANAGERS AS THOMAS FRANK AND RICHARD HOEY BUT THE MOST FAMOUS DREYFUS FUND MANAGERS ARE THOSE WHO LEFT THE FIRM STANLEY DRUCKENMILLER LEFT TO MANAGE MONEY FOR HEDGEFUND MAESTRO GEORGE SOROS WE MADE GEORGE SOROS MR STEIN LAMENTS ALSO AMONG DREYFUS ALUMNI WAS KENNETH OBERMAN WHO RAN FUNDS AT OPPENHEIMER MANAGEMENT UNTIL HIS DEATH DREYFUS HAS IN RECENT YEARS FREQUENTLY TURNED OUTSIDE ITS OWN RANKS TO FIND FUND MANAGERS BUT THE PAYOFF HAS BEEN ELUSIVE GROWTHSTOCK INVESTOR FAYEZ SAROFIM BEGAN RUNNING DREYFUS APPRECIATION FUND SHORTLY BEFORE THE CONSUMER STOCKS THAT HE FAVORS GOT HAMMERED IN THE MARKET BEARISH COMSTOCK PARTNERS ALSO HAS HAD WEAK RESULTS RUNNING TWO DREYFUS FUNDS TODAY MONEYMARKET FUNDS WHICH ARE BARELY PROFITABLE TO MONEY MANAGERS MAKE UP ABOUT 55 OF DREYFUS'S FUND ASSETS UNDER MANAGEMENT STOCK FUNDS MAKE UP 11 THE LACK OF A BROAD RANGE OF STOCK AND TAXABLEBOND FUNDS ALSO HAS HURT DREYFUS'S EFFORTS TO EXPAND ITS BUSINESS MANAGING 401K RETIREMENT PLANS A BIG DRIVER OF GROWTH FOR SOME OTHER BIG FUND FIRMS NO WONDER DREYFUS'S STOCK PRICE HAS EDGED UP ONLY 11 IN THE PAST TWO YEARS JUST WHAT DREYFUS MIGHT BUY ISN'T CLEAR ONE INVESTMENT BANKER WHO WASN'T INVOLVED IN THE MELLON DEAL SAYS THERE'S BEEN SPECULATION ABOUT FAYEZ SAROFIM & CO HOUSTON DREYFUS WON'T COMMENT ON NAMES BUT MR DIMARTINO SAYS THAT BUYING AN INSTITUTIONAL MONEYMANAGEMENT FIRM AS OPPOSED TO ANOTHER MUTUALFUND COMPANY IS A POSSIBILITY IF DREYFUS BUYS ANOTHER FUND GROUP OR MONEY MANAGEMENT FIRM IT COULD WIND UP PAYING FAR MORE THAN IF IT HAD GROWN ITS OWN NOWADAYS FUND PRICES ARE SKYHIGH DREYFUS COULD HANDLE A BIG ACQUISITION EVEN OF A PUBLICLY TRADED FUND GROUP INVESTMENT BANKERS SAY BESIDES ITS EXISTING CASH HOARD IT HAS FILED FOR A 250 MILLION DEBT ISSUE 9312020144 931202 WHAT'S NEWS WORLDWIDE GUNMEN KILLED AN ISRAELI TEACHER IN A DRIVEBY ATTACK ON WEST BANK SETTLERS TWO PALESTINIAN GROUPS OPPOSED TO THE RECENT ISRAELPLO PEACE ACCORD CLAIMED RESPONSIBILITY FOR THE ATTACK WHICH WOUNDED THREE OTHER SETTLERS IN THE GAZA STRIP ISRAELI TROOPS DID NOT CONFRONT DEMONSTRATORS MARCHING TO DEMAND THAT PEACE TALKS BE SUSPENDED UNTIL ISRAEL RELEASES THE COMMANDER OF THE MILITARY WING OF ARAFAT'S PLO FACTION HIS CAPTURE AND THE KILLING OF ANOTHER FATAH HAWK FIGHTER THIS WEEK TOUCHED OFF VIOLENT CLASHES IN GAZA TUESDAY TWO SENIOR PLO OFFICIALS BOYCOTTED AN EMERGENCY MEETING IN CAIRO ON STALLED TALKS WITH ISRAEL UNDERLINING GROWING DISCONTENT WITH ARAFAT'S LEADERSHIP THE BOSNIAN GOVERNMENT SAID IT WOULD AGREE TO DIVIDE SARAJEVO WITH BOSNIAN SERBS IF THE MOVE WOULD SAVE LIVES IN THE BESIEGED CAPITAL THE BOSNIAN SERB LEADER SAID THE CONCESSION COULD BREATHE NEW LIFE INTO STALLED PEACE TALKS IN GENEVA WHICH WERE EXTENDED ANOTHER DAY IN SARAJEVO THE MAIN HOSPITAL WAS SHELLED KILLING TWO NURSES CLINTON WAS HECKLED DURING A VISIT TO AIDS PATIENTS BY A PROTESTER WHO ACCUSED HIM OF DOING NOTHING TO COMBAT THE DISEASE THE PRESIDENT WHO MADE THE VISIT TO MARK WORLD AIDS DAY SAID HE PREFERRED TO BE SCREAMED AT THAN TO HAVE AIDS ACTIVISTS GIVE UP THEIR FIGHT OTHER ADMINISTRATION OFFICIALS ALSO VISITED AIDS CLINICS TO MARK THE DAY A BOMB WRECKED A HOTEL IN SOUTH AFRICA HOURS BEFORE AN AFRIKANER GROUP WAS TO HAVE MET THERE THE GROUP EARLIER THIS WEEK CALLED FOR A WHITESONLY ELECTION ON THE CREATION OF AN AFRIKANER STATE DE KLERK URGED WHITE HARDLINERS TO END IRRESPONSIBLE TALK OF ARMED RESISTANCE TO A MULTIRACIAL TRANSITIONAL AUTHORITY TO BE INSTALLED NEXT WEEK GORE INVITED LEADERS OF WESTERN HEMISPHERE DEMOCRACIES TO A SUMMIT NEXT YEAR SAYING THE RECENTLY APPROVED TRADE ACCORD WITH MEXICO MARKS A MAJOR CHANGE IN US POLICY TOWARD THE AMERICAS GORE WAS IN MEXICO FOR TALKS ON IMPLEMENTING THE PACT YUCATAN'S GOVERNOR QUIT AMID CHARGES HER PARTY THE RULING PRI HAD STOLEN AN ELECTION SUNDAY TO CHOOSE HER SUCCESSOR OPPONENTS CLAIMED PRI TOTALS EXCEEDED THE NUMBER OF REGISTERED VOTERS IN SOME AREAS THE NAVY PLANS TO PUT AS MANY AS 500 FEMALE SAILORS ON AIRCRAFT CARRIERS NEXT YEAR NAVY SECRETARY DALTON SAID DALTON SAID WOMEN WOULD ALSO BE ASSIGNED TO OTHER TYPES OF SHIPS BUT DIDN'T SPECIFY NUMBERS CLINTON THIS WEEK SIGNED LEGISLATION LIFTING A BAN ON SERVICE BY WOMEN ABOARD COMBAT VESSELS THE US IS INVESTIGATING ALLEGATIONS OF KICKBACKS BETWEEN GOVERNMENT CONTRACTORS AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION JUSTICE DEPARTMENT INVESTIGATORS EXPECT TO BRING CRIMINAL CHARGES AS WELL AS SEEK CIVIL SETTLEMENTS A RUSSIAN COURT REJECTED A REQUEST BY A TOP YELTSIN AIDE TO BAR THE COMMUNIST PARTY FROM THE BALLOT IN DEC 12 PARLIAMENTARY ELECTIONS THE ELECTION COMMISSION HOWEVER MUST STILL DECIDE WHETHER THE PARTY CAN RUN SEPARATELY PROREFORM PARTIES REJECTED A PROPOSAL TO UNITE BEHIND INDIVIDUAL CANDIDATES IN EACH DISTRICT IN THE ELECTIONS KOHL SAID GERMANY AND FRANCE BELIEVE THERE IS NO CHANCE NATO WILL OFFER MEMBERSHIP TO FORMER EAST BLOC NATIONS IN THE NEAR FUTURE THE GERMAN CHANCELLOR MADE THE REMARKS ON THE EVE OF A NATO MEETING ON THE ISSUE RUSSIA HAS STRONGLY OPPOSED ANY SUCH NATO EXPANSION AND IS TO PRESENT ITS OWN PROPOSALS ON EUROPEAN SECURITY TODAY THE LEADERS OF BRITAIN AND IRELAND ARE TO MEET TOMORROW FOR TALKS ON ENDING VIOLENCE IN NORTHERN IRELAND THE MEETING HAS DRAWN WIDE ATTENTION BECAUSE OF RECENT REVELATIONS THAT THE BRITISH GOVERNMENT HAS HAD SECRET CONTACTS WITH THE IRA FOR SOME TIME A DUBLIN NEWSPAPER SAID CLINTON URGED MAJOR TO GO THE EXTRA MILE FOR A SETTLEMENT AN ETHIOPIAN OFFICIAL SAID CLAN LEADER AIDID WILL ATTEND A MEETING OF SOMALI LEADERS AIMED AT ENDING THEIR FACTIONAL FIGHTING ALI MAHDI MOHAMED A POWERFUL AIDID RIVAL WHO ALSO BOYCOTTED A UN AID CONFERENCE THIS WEEK ARRIVED IN ADDIS ABABA YESTERDAY PUTTING FURTHER PRESSURE ON AIDID TO ATTEND GEORGIA SIGNED A TRUCE ACCORD WITH ABKHAZIAN SEPARATISTS CALLING FOR A CEASEFIRE AN EXCHANGE OF PRISONERS AND THE REPATRIATION OF AN ESTIMATED 200000 REFUGEES THE PACT REACHED AFTER TWO DAYS OF UNLED TALKS CALLS ON THE TWO SIDES TO MEET AGAIN IN JANUARY TO DISCUSS A FULL POLITICAL ACCORD NEW JERSEY WELFARE MOTHERS SUED TO OVERTURN A PROVISION IN A 1992 STATE LAW THAT PROHIBITS INCREASED GRANTS FOR WOMEN WHO HAVE BABIES WHILE RECEIVING ASSISTANCE LAWYERS SAID THE LAW FORCES THE WOMEN TO CHOOSE BETWEEN ABORTION OR DEEPER POVERTY 9312020143 931202 FINANCING BUSINESS ASARCO INC ASARCO INC NEW YORK SAID IT OFFERED 50 MILLION OF 7 NOTES DUE DEC 1 2001 THE NOTES WHICH WERE ISSUED AT PAR REPRESENT THE FINAL OFFERING IN ASARCO'S SHELF REGISTRATION STATEMENT FOR UP TO 250 MILLION OF DEBT SECURITIES ASARCO SAID IT WILL USE THE PROCEEDS OF THE OFFERING TO REDEEM ITS 40 MILLION OF 9 3/4 DEBENTURES DUE 2000 AND TO REPAY REVOLVING CREDIT BANK BORROWINGS CS FIRST BOSTON CORP IS THE LEAD MANAGER OF THE OFFERING WITH JP MORGAN SECURITIES INC AS COMANAGER 9312020142 931202 MORRISON KNUDSEN GETS CONTRACT BOISE IDAHO MORRISON KNUDSEN CORP SAID IT AND ITS PARTNERS IN A RAIL CONSORTIUM WON A CONTRACT FROM THE ARGENTINE GOVERNMENT TO OPERATE AND MAINTAIN A COMMUTER RAIL LINE AND SUBWAY SYSTEM SERVING BUENOS AIRES THE VALUE OF THE CONTRACT WASN'T DISCLOSED MORRISON KNUDSEN'S ROLE IN THE PACT WILL INCLUDE ACQUISITION AND MAINTENANCE OF ROLLING STOCK AND MANAGEMENT AND BUSINESS DEVELOPMENT OF THE CONSORTIUM OTHER CONSORTIUM MEMBERS INCLUDE BURLINGTON NORTHERN RAILROAD OF FORT WORTH TEXAS BENITO ROGGIO A CONSTRUCTION COMPANY BASED IN CORDOBA ARGENTINA AND COMETRANS A GROUP OF BUS COMPANIES IN BUENOS AIRES 9312020140 931202 WHO'S NEWS CHEMICAL BANKING CORP CHEMICAL BANKING CORP NEW YORK MASAMICHI OHTANI WAS NAMED CHIEF INVESTMENT OFFICER OF THIS BANKING CONCERN'S TOKYOBASED CHEMICAL TRUST & BANKING CO MR OHTANI 51 YEARS OLD SUCCEEDS TOMOAKI SHIBATA WHO WILL RETIRE IN FEBRUARY CHEMICAL TRUST & BANKING ONE OF NINE FOREIGNOWNED TRUST BANKS OPERATING IN JAPAN PROVIDES INVESTMENTMANAGEMENT SERVICES TO CORPORATE AND INSTITUTIONAL INVESTORS MR OHTANI JOINS CHEMICAL TRUST FROM MITSUI TRUST & BANKING CO WHERE HE HELD SEVERAL SENIOR POSTS INCLUDING GENERAL MANAGER FOR PENSIONFUND INVESTMENT 9312020139 931202 ICI TO SELL BUSINESS TO ASHLAND LONDON IMPERIAL CHEMICAL INDUSTRIES PLC SAID IT IS SELLING ITS MODIFIED ACRYLIC RESINS OR MODAR BUSINESS TO ASHLAND CHEMICAL CO ICI DIDN'T DISCLOSE TERMS BUT SAID THE VALUE OF THE TRANSACTION IS LESS THAN 1 OF ITS NET ASSETS ICI SAID IT IS SELLING THE BUSINESS AS PART OF ITS MOVE TO CONCENTRATE ON OTHER PARTS OF ITS CHEMICALS BUSINESS ICI'S MODAR BUSINESS IS CONDUCTED PRIMARILY IN WESTERN EUROPE AND NORTH AMERICA SPECIFIC TERRITORIAL EXCLUSIONS TO THE SALE OF THIS WORLDWIDE BUSINESS EXIST IN ASIA ICI SAID WHERE IT HAS EXISTING LICENSING AGREEMENTS ASHLAND CHEMICAL IS A UNIT OF ASHLAND OIL INC ASHLAND KY 9312020138 931202 WHO'S NEWS ALLERGAN INC ALLERGAN INC IRVINE CALIF CHAIRMAN GAVIN S HERBERT WILL RETIRE AS AN ACTIVE EMPLOYEE EFFECTIVE APRIL 1 BUT WILL CONTINUE TO SERVE THE COMPANY AS CHAIRMAN AND A DIRECTOR ALTHOUGH MR HERBERT'S DUTIES WON'T CHANGE HE'LL NO LONGER RECEIVE THE 340000 A YEAR HE CURRENTLY GETS AS AN EMPLOYEE INSTEAD A SPOKESMAN SAID HE WILL RECEIVE A PENSION THE DECISION OF THE 61YEAROLD MR HERBERT TO RETIRE IS PART OF A TRANSITION THAT BEGAN IN JANUARY 1992 WHEN WILLIAM C SHEPHERD 55 ASSUMED THE ROLE OF CHIEF EXECUTIVE OFFICER THE COMPANY SAID ALLERGAN MAKES SPECIALTY THERAPEUTIC PRODUCTS FOR EYE AND SKIN CARE AND NEUROMUSCULAR DISORDERS 9312020137 931202 WHO'S NEWS CALPROP CORP CALPROP CORP LOS ANGELES MARK F SPIRO WAS NAMED CHIEF FINANCIAL OFFICER OF THIS HOME BUILDER SUCCEEDING STUART EIGLER 38 YEARS OLD WHO RESIGNED MR SPIRO 41 WAS VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF INCO HOMES CORP 9312020136 931202 TECHNOLOGY & HEALTH THAT FIRST BIG SNOW MAY BE HAZARDOUS TO COUCH POTATOES STUDY SAYS PHYSICAL EXERTION BY SEDENTARY RAISES RISK OF HEART ATTACK 100 TIMES BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL PEOPLE WHO ARE OUT OF SHAPE INCREASE THEIR RISK OF A HEART ATTACK 100 TIMES WHEN THEY ENGAGE IN RIGOROUS PHYSICAL ACTIVITY SUCH AS SHOVELING SNOW PLAYING TENNIS OR JOGGING A NEW STUDY SAID BUT PEOPLE WHO EXERCISE REGULARLY FACE ONLY TWICE THE NORMAL RISK OF A HEART ATTACK DURING PERIODS OF HEAVY EXERTION STRENUOUS ACTIVITY HAS LONG BEEN CONSIDERED A TRIGGER OF HEART ATTACKS BUT RESEARCHERS SAID THE REPORT IS AMONG THE FIRST SCIENTIFIC STUDY TO CONFIRM THE LINK AND TO QUANTIFY THE RISKS AND BENEFITS OF PHYSICAL ACTIVITY REGULAR EXERCISE PROTECTS AGAINST TRIGGERING TO A REMARKABLE DEGREE SAID JAMES E MULLER CHIEF OF CARDIOLOGY AT DEACONESS HOSPITAL AND HARVARD MEDICAL SCHOOL BOSTON MOREOVER THE BENEFIT COMES FROM RELATIVELY LIGHT EXERCISE SUCH AS REGULAR BRISK WALKS IT'S NOT MARATHON RUNNING SAID DR MULLER SENIOR AUTHOR OF THE STUDY WHICH APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE ABOUT 15 MILLION AMERICANS HAVE HEART ATTACKS EACH YEAR BETWEEN 4 AND ABOUT 5 OR MORE THAN 60000 ARE BELIEVED TO OCCUR SOON AFTER HEAVY EXERTION ABOUT 25000 OF THOSE ARE FATAL THE STUDY WAS BASED ON INTERVIEWS WITH 1228 HEARTATTACK PATIENTS 54 OF WHOM OR 44 REPORTED STRENUOUS PHYSICAL ACTIVITY WITHIN THE HOUR BEFORE THEIR ATTACKS RESEARCHERS SAID THEIR ANALYSIS INDICATED HEAVY EXERTION TRIGGERED 38 OF THE HEART ATTACKS WHILE THE RELATIVE RISK OF A HEART ATTACK FOR SEDENTARY PATIENTS WAS HIGH RESEARCHERS NOTED THAT THE ACTUAL RISK IS MUCH LOWER THEY SAID THE CHANCES OF A 50YEAROLD NONSMOKING MAN HAVING A HEART ATTACK IN ANY ONEHOUR PERIOD IS ABOUT ONE IN ONE MILLION IF THAT MAN EXERCISED REGULARLY THE RISK OF HEART ATTACK WITHIN AN HOUR OF HEAVY EXERTION INCREASED TO ABOUT ONE IN 500000 IF HE WAS SEDENTARY THE RISK WOULD RISE TO ONE IN 10000 9312020135 931202 HEARD ON THE STREET WATERHOUSE INVESTOR SERVICES LEARNS FIRSTHAND WHAT CAN HAPPEN TO MOMENTUM' STOCKS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL WATERHOUSE INVESTOR SERVICES RUNS A DISCOUNTBROKERAGE FIRM POPULAR WITH MOMENTUM INVESTORS WHO CHASE TRENDY STOCKS THAT ARE ALREADY RISING AND WATERHOUSE ITSELF HAS BEEN A HOT MOMENTUM PLAY THIS YEAR SOARING 135 SINCE IT WAS LISTED ON THE NEW YORK STOCK EXCHANGE A YEAR AGO FUELING THE SURGE THE NEW YORK COMPANY OFFERS DEEPERTHANUSUAL COMMISSION DISCOUNTS TO WATERHOUSE SECURITIES CUSTOMERS WHEN THEY BUY WATERHOUSE STOCK IT IS POETRY BUT WATERHOUSE IS DISCOVERING WHAT HAPPENS TO MOMENTUM STOCKS THAT GET AHEAD OF THEMSELVES WATERHOUSE SHARES HAVE STALLED RECENTLY AND HAD DECLINED 8 THIS WEEK BEFORE INCHING UP 1/4 TO 26 YESTERDAY SOME INVESTORS FEAR FISCAL FIRSTQUARTER EARNINGS COULD BE DISAPPOINTING OTHERS ARE TAKING PROFITS AFTER THE BIG RUNUP WATERHOUSE'S STOCK HAS GONE GANGBUSTERS WITHOUT A VALID REASON FOR DOING SO I THINK THEY ARE PARTICULARLY VULNERABLE OF THE DISCOUNTBROKERAGE FIRMS SAYS NANCY ZAMBELL OF JW CHARLES/CSG IN BOCA RATON FLA SHE WROTE A RECENT BEARISH REPORT ON THE BROKERAGE INDUSTRY IN WHICH SHE RECOMMENDS SELLING ALL 13 STOCKS COVERED INCLUDING WATERHOUSE WATERHOUSE'S TOTAL STOCKMARKET VALUE EVEN WITH THIS WEEK'S DECLINES STANDS AT 240 MILLION OR THREE TIMES FISCAL 1993 REVENUE THE SHARE PRICE IS 67 TIMES BOOK VALUE NO OTHER BROKERAGE STOCK INCLUDING INDUSTRY LEADER MERRILL LYNCH AND TOP DISCOUNTERS CHARLES SCHWAB AND QUICK & REILLY GROUP IS MORE HIGHLY VALUED ROBERT STOVALL OF STOVALL/TWENTYFIRST ADVISERS LIKES TO BET AGAINST ONE STOCK IN AN INDUSTRY WHILE SIMULTANEOUSLY BUYING ANOTHER HE MADE A BEARISH SHORTSALE BET ON WATERHOUSE AND BOUGHT STOCK IN BEAR STEARNS SOME WEEKS AGO HE SAYS IT WAS PURELY ON A VALUATION AND PRICEMOMENTUM BASIS WATERHOUSE GOT OUT OF LINE WITH OTHER BROKERS THE SHORTSELLERS' NEWSLETTER OVERPRICED STOCK SERVICE CROWNED WATERHOUSE ITS OVERVALUED STOCK OF THE MONTH WITH A TARGET PRICE OF 17 THE OTHER BROKERAGE STOCK THAT THE NEWSLETTER RECOMMENDS SELLING IS MERRILL WHICH WILL PLUNGE ON ANY GLIMMER OF A BEAR MARKET THE NEWSLETTER CLAIMS MERRILL IS NOW AT 45 7/8 OFF FROM A RECENT SPLITADJUSTED PEAK OF 51 1/8 NOTING THE CIRCULAR WAY IN WHICH WATERHOUSE CUSTOMERS ARE ENCOURAGED TO BUY WATERHOUSE STOCK THROUGH THE LOWER COMMISSIONS WHICH IN TURN BOOSTS WATERHOUSE'S EARNINGS WHICH ENTICES MORE BUYING THE NEWSLETTER OBSERVES THE LAST TIME WE SAW A DEAL LIKE THIS WAS A MINK AND RAT FARM IN MEXICO WHERE THEY FED THE RATS TO THE MINKS KILLED AND SKINNED THE MINKS FOR THEIR FUR AND FED THE MEAT BACK TO THE RATS IT LOOKED GREAT ON PAPER WATERHOUSE OFFICIALS DECLINE TO COMMENT CITING THE MANDATED QUIET PERIOD AHEAD OF A SECURITIES OFFERING WATERHOUSE IS IN REGISTRATION TO SELL THROUGH BEAR STEARNS 50 MILLION OF CONVERTIBLE DEBENTURES FOR EXPANSION INCLUDING THAT OF ITS CONSUMER BANK WATERHOUSE THE FIFTHLARGEST US DISCOUNT BROKER WAS FOUNDED IN 1978 BY LAWRENCE WATERHOUSE A FORMER CHEMICAL BANK LOAN OFFICER WHOSE TRIPLET SONS ALL WORK FOR HIM IT HAS 55 OFFICES AND PLANS EIGHT MORE BY THE END OF NEXT SUMMER IT ALSO IS LOOKING TO OPEN A NATIONAL CALL CENTER IN NEW JERSEY TO HANDLE OVERFLOW CALLS FROM CUSTOMERS WHEN THEY BUILD UP TOO MUCH MOMENTUM NOTE SHARE FIGURES REFLECT A 5FOR4 STOCK SPLIT PAID IN MARCH 1993 AND A 3FOR2 STOCK SPLIT PAID IN NOVEMBER 1993 MAGELLAN FUND BUYS MORE STOCK THE 30 BILLION FUND RUN BY FIDELITY INVESTMENTS WAS 20 IN CASH AND SHORTTERM GOVERNMENT BONDS EARLY THIS YEAR NOW IT IS DOWN TO 31 CASH SAYS THE FUND'S LATEST REPORT IS MANAGER JEFF VINIK MORE OPTIMISTIC ABOUT THE MARKET NO HE REMAINS FIRMLY NEUTRAL HE SAYS IT JUST TOOK TIME TO RESHAPE THE ENORMOUS FUND SINCE TAKING OVER IN JULY 1992 NOW THAT I'VE DONE THAT MY CASH POSITION IS SMALL MEANWHILE FIDELITY DENIES A RUMOR THAT ITS FUNDS STOPPED BUYING INITIAL PUBLIC OFFERINGS OF SMALL COMPANIES YET RESEARCH DIRECTOR RICK SPILLANE CONCEDES FIDELITY IS TREADING MORE LIGHTLY BECAUSE OF IPO OVERSUPPLY AND LOWER QUALITY THE ONLY CAUTION I GAVE TO THE ANALYSTS WAS TO USE YOUR JUDGMENT USE YOUR HEADS MR SPILLANE SAYS ADDING HAVE YOU SEEN SOME OF THE PROSPECTUSES 9312020134 931202 CODA ENERGY SETS BUYBACK DALLAS CODA ENERGY INC SAID IT WILL BUY BACK ITS COMMON STOCK FOR 8 A SHARE FROM HOLDERS WHO OWN FEWER THAN 100 SHARES THE OIL AND GAS COMPANY SAID THE OFFER IS EFFECTIVE IMMEDIATELY FOR STOCK OF RECORD NOV 22 THE OFFER IS SET TO EXPIRE APRIL 1 THE COMPANY HAS ABOUT 154 MILLION COMMON SHARES OUTSTANDING BUT COULDN'T SAY HOW MANY ARE HELD IN ODD LOTS CODA SAID THE REPURCHASE PROGRAM WILL REDUCE THE COMPANY'S SHAREHOLDERSERVICES COSTS AND GIVE HOLDERS AN OPPORTUNITY TO SELL SHARES WITHOUT PAYING BROKERAGE COMMISSIONS THE OFFER ALSO EXTENDS TO HOLDERS OF CERTAIN SECURITIES IN A NUMBER OF ITS PREDECESSOR COMPANIES CODA SAID THOSE ARE COMPANIES WITH WHICH CODA HAS MERGED 9312020133 931202 WILLIAMS COS BUYS PIPELINE TULSA OKLA WILLIAMS COS SAID ONE OF ITS UNITS COMPLETED THE PURCHASE OF A PETROLEUM PRODUCTS PIPELINE FROM A SUBSIDIARY OF SUN CO OF RADNOR PA THE PURCHASE PRICE WASN'T DISCLOSED THE ACQUISITION COVERS 300 MILES OF PIPELINE IN OKLAHOMA SIX PUMPING STATIONS 14 MILLION BARRELS OF STORAGE TANK CAPACITY AND PRODUCTS TERMINALS IN OKLAHOMA CITY AND FORT SMITH ARK WILLIAMS PIPE LINE THE GAS CONCERN'S UNIT SAID THE SYSTEM CONNECTS WITH ITS 8500MILE PETROLEUM PRODUCTS PIPELINE SYSTEM AT DRUMRIGHT OKLA AND WILL PROVIDE ACCESS TO REFINERIES IN OKLAHOMA AND TEXAS 9312020132 931202 GENEVA STEEL FURNACE IS IDLED VINEYARD UTAH GENEVA STEEL SAID AN EQUIPMENT FAILURE NOV 29 HAS TEMPORARILY INTERRUPTED OPERATION OF ONE OF ITS TWO OPERATING BLAST FURNACES AND IS EXPECTED TO COST 1 MILLION TO REPAIR THE COMPANY SAID IT EXPECTS OPERATING COSTS TO INCREASE TEMPORARILY AS WELL AS SHIPMENTS TO BE REDUCED BY AN AGGREGATE AMOUNT OF 20000 TO 30000 TONS DURING DECEMBER AND JANUARY GENEVA WHICH MANUFACTURES HOTROLLED STEELSHEET PLATE AND PIPE FOR SALE WEST OF THE MISSISSIPPI SAID IT'S MAKING PREPARATIONS TO START UP AN IDLED BLAST FURNACE THAT'S EXPECTED TO BEGIN OPERATING IN ABOUT THREE WEEKS 9312020131 931202 LIMITED INC SAYS SAMESTORE SALES FELL IN NOVEMBER BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBUS OHIO BLAMING THE CONTINUED SOFTNESS IN SALES OF WOMEN'S APPAREL THAT LASTED THROUGH THANKSGIVING WEEKEND LIMITED INC SAID NOVEMBER SALES AT STORES OPEN AT LEAST A YEAR FELL 7 FROM A YEAR EARLIER LIMITED ALSO SAID IT EXPECTS EARNINGS IN THE CURRENT FISCAL YEAR TO DROP BETWEEN 4 TO 12 FROM A YEAR AGO TO BETWEEN 110 TO 120 A SHARE IN THE FISCAL YEAR ENDED JAN 30 1993 LIMITED HAD NET INCOME OF 4555 MILLION OR 125 A SHARE IN AN ANNOUNCEMENT ISSUED AFTER THE STOCK MARKET CLOSED YESTERDAY AND A DAY AHEAD OF MOST NOVEMBER RETAIL SALES ANNOUNCEMENTS THE APPAREL RETAILER SAID ITS TOTAL SALES FOR NOVEMBER FELL 5 TO 6329 MILLION FROM 6687 MILLION A YEAR EARLIER IT BLAMED ITS LIMITED STORES DIVISION WHICH IT SAID CONTINUES TO BE HURT BY AN UNBALANCED ASSORTMENT OF INVENTORY WHICH SUGGESTS IT HASN'T STOCKED A SUFFICIENT AMOUNT OF BESTSELLING MERCHANDISE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY LIMITED CLOSED AT 2150 DOWN 1125 LESLIE H WEXNER CHAIRMAN AND CHIEF EXECUTIVE SAID THE CURRENT RETAIL ENVIRONMENT MAKES IT IMPOSSIBLE TO PREDICT DECEMBER'S PERFORMANCE HE ADDED THAT WE WILL BE CLEARING SLOWMOVING MERCHANDISE AND EXPECT THAT OUR INVENTORIES WILL BE CLEAN AS WE ENTER THE SPRING SEASON MR WEXNER SAID IN A STATEMENT THAT THE EXPRESS DIVISION HAS FOUND IT DIFFICULT TO MATCH ITS RECORDBREAKING PERFORMANCE OF A YEAR AGO HE ADDED THAT THE LERNER NEW YORK AND VICTORIA'S SECRET STORES UNITS CONTINUE TO IMPROVE AND THAT THE VICTORIA'S SECRET CATALOGUE HAD A DOUBLEDIGIT SALES GAIN IN NOVEMBER IN THE FIRST 10 MONTHS OF THE FISCAL YEAR LIMITED SAID TOTAL SALES ROSE 5 TO 54 BILLION WITH SAMESTORE SALES FLAT COMPARED WITH A YEAR EARLIER 9312020130 931202 LETTERS TO THE EDITOR THE SEEDS OF MYTH IN REGARD TO YOUR NOV 10 PAGEONE STORY A GENETICIST'S WORK ON DNA BEARS FRUIT FOR ANTHROPOLOGISTS YOUR FASCINATING ACCOUNT OF MITOCHONDRIAL DNA FINDS AGREEMENT WITH MYTHOLOGIST JOSEPH CAMPBELL HE POSITS A CULTURAL CONTINUUM THROUGH STUDYING PRIMITIVE PLANTING MYTHS EXTENDING EASTWARD FROM SOUTHEAST ASIA AND OCEANIA TO AMERICA THESE ARCHETYPAL ORIGIN MYTHS THEN BECOME ADAPTED TO THE LOCAL CULTURE HE ALSO SUGGESTS A CULTURAL DIFFUSION THROUGH STUDIES OF DOMESTICATED PLANTS THAT SHOW SEED AND PLANT SPECIES IDENTICAL TO OCEANIA AND AMERICA 9312020129 931202 INTERNATIONAL DYNASTY' IN SHANGHAI IS AIMING FOR PROFIT WESTERN SHOWS BLOSSOM IN CHINA AS TV MARKET EXPANDS BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA IT'S THE TOP OF THE NEWS ON SHANGHAI TELEVISION AND THE ANCHOR LISTS THE NAMES OF SOMBERLOOKING LEADERS WHO ARE STUDYING DENG XIAOPING THOUGHT IN A PUBLIC FORUM HU ZHIYI A LOCAL MUSIC TEACHER REACHES FOR HIS REMOTE CONTROL CLICK STEFFI GRAF AND ARANTXA SANCHEZ VICARIO SQUARE OFF IN THE FINALS OF THE VIRGINIA SLIMS TENNIS CHAMPIONSHIP IN NEW YORK CLICK A GROUP OF HONG KONG THUGS RIDDLES A POLICE CAR WITH AK47 FIRE AS THE CAMERA SWOOPS IN FOR A CLOSEUP OF BULLETRIDDEN CHESTS MR HU FOR A CHANGE HAS A CHOICE BEFORE YOU WATCHED THE POLITICAL NEWS FROM THE CENTRAL GOVERNMENT OR YOU SHUT OFF THE TV HE SAID NOW YOU LOOK AT THE OTHER CHANNELS WHEN YOU'VE HAD ENOUGH ANYONE SEARCHING FOR EVIDENCE THAT CAPITALISM BRINGS AT LEAST A DEGREE OF OPENNESS TO ONE OF CHINA'S MOST SENSITIVE AREAS THE MEDIA NEED LOOK NO FURTHER THAN SHANGHAI TELEVISION WHERE ONCE THEY SAW BOURGEOIS LIBERALIZATION THE CHINESE TERM FOR WESTERN CULTURAL IMPERIALISM LOCAL BROADCASTERS NOW SEE SOARING AD REVENUE FAT PROFITS LUXURIOUS OFFICE TOWERS AND MODERN PRODUCTION STUDIOS THE SOPHISTICATION OF LOCAL TELEVISION STATIONS VARIES WIDELY FROM CITY TO CITY BUT SHANGHAI WHICH ALONG WITH FOUR OTHER LOCAL GOVERNMENTS ENJOYS THE RIGHT TO IMPORT ENTERTAINMENT SHOWS WITHOUT CENTRAL GOVERNMENT REVIEW IS HARDLY ALONE IN PUSHING TELEVISION ALONG THE TRAIL BLAZED BY THE BROADER ECONOMY THAT MEANS KEEPING CONTROL AND EARNING HANDSOME PROFITS BY OPENING UP ONLY 18 MONTHS AGO SHANGHAI OFFERED ITS 14 MILLION RESIDENTS AND 100 MILLIONPLUS REGIONAL VIEWERS THE CHOICE OF TWO CHANNELS NOW THE CITY HAS ADDED TWO NEW COMPETING STATIONS INCLUDING A CABLE NETWORK WITH 11 CHANNELS CURRENTLY AND 19 MORE PLANNED IDEOLOGY IS OUT FALCON CREST DYNASTY THE OSCARS AND THE SUPERBOWL ARE IN LAST WEEK'S DUNHILL SATURDAY NIGHT MOVIE OF THE WEEK ON SHANGHAI TV MIDNIGHT RUN WITH ROBERT DENIRO THIS WEEK'S MARQUEE OTHER PEOPLE'S MONEY EXECUTIVES FOCUS ON RATINGS PRIME TIME AND VIEWER LOYALTY YOU GIVE PEOPLE WHAT THEY WANT TO WATCH OR THEY WATCH SOMEBODY ELSE SAYS HU YUNCHOU PRESIDENT OF SHANGHAI'S NEW CABLE TV WE HAVE JUST TWO PRINCIPLES ONE IS SATISFYING DEMAND THE OTHER IS MAKING MONEY MR HU SAID THAT ON THE CABLE NETWORK WHICH INCORPORATES SHANGHAI'S OTHER BROADCASTERS FOREIGN PROGRAMS ACCOUNT FOR 30 OF THE TOTAL SATISFYING DEMAND IS HARDLY A NOVEL IDEA FOR THE WORLD TELEVISION INDUSTRY BUT IT MAY BE THE MAKINGS OF A REVOLUTION FOR CHINA JUST LAST MONTH AS SHANGHAI TV DEBATED WHETHER TO CONTINUE ITS GROWING PAINS SITUATION COMEDY OR SWITCH OVER TO WONDER WOMAN THE CENTRAL MINISTRY OF RADIO FILM AND TELEVISION LOUDLY RENEWED ITS BAN ON THE UNAUTHORIZED USE OF SATELLITE DISHES TO RECEIVE FOREIGN PROGRAMMING THE MINISTRY CITED A NONSTOP EFFORT BY FOREIGNERS TO UNDERMINE CHINA'S STABILITY MEANWHILE LOCAL BROADCASTERS AND CABLE COMPANIES ARE THRILLED WITH THE BAN ON UNAUTHORIZED SATELLITE DISHES FOR GOOD OLD REASONS OF COMPETITION WE'RE TRYING TO SUGGEST TO PEOPLE THAT THEY DON'T NEED THE SATELLITE ANTENNAS TANG SHULIN THE VICE CHIEF EDITOR AT SHANGHAI TV KNOWN LOCALLY AS STV FOR FREE THEY CAN WATCH OUR SHOWS STV DERIVES 90 OF ITS INCOME FROM ADS AND REVENUE HAS SOARED TO 200 MILLION YUAN 345 MILLION ORIENTAL TV WHICH BEGAN OPERATING ONLY LAST JANUARY DEPENDS ENTIRELY ON AD MONEY IT EXPECTS TO REPORT REVENUE OF 120 MILLION YUAN US207 MILLION THIS YEAR AND TO DOUBLE THAT IN 1994 THE WINDFALL HAS PROMPTED A SPENDING BINGE THE PARENT OF THE TELEVISION STATIONS THE SHANGHAI BUREAU OF RADIO AND TELEVISION IS CONSTRUCTING A HUGE NEW BROADCAST TOWER IN SHANGHAI'S PUDONG DEVELOPMENT ZONE EXPANDING THEIR TELEVISION INFLUENCE WELL INTO NEIGHBORING PROVINCES STV HAS BUILT A 27STORY OFFICE COMPLEX AND PRODUCTION STUDIO IN SHANGHAI'S MAIN BUSINESS DISTRICT SHANGHAI CABLE EXPECTS TO HAVE CONNECTED 700000 HOMES VIA TOPOFTHELINE FIBEROPTIC CABLE BY THE END OF DECEMBER INCREASED INCOME AND MORE FOREIGN PROGRAMMING HAVE NOT SUDDENLY MADE DEMOCRATS OR HUMAN RIGHTS ACTIVISTS OUT OF ONCECONSERVATIVE BROADCASTERS THERE'S STILL A LIBERAL DOSE OF COMMUNIST PATERNALISM WHEN NEWS EDITORS SPEAK OF THEIR POLITICAL DUTIES THE COMMON PEOPLE OF CHINA PAY VERY CLOSE ATTENTION TO POLITICAL POLICY SAID ZHUANG YUNFEI CHIEF EDITOR OF ORIENTAL TV THE COMMON PEOPLE WOULD BE VERY OFFENDED IF WE STOP PROPAGATING THIS KIND OF NEWS THIS YEAR ORIENTAL TV BECAME THE FIRST STATION IN CHINA TO USE LIVE FEEDS FROM A FOREIGN BROADCASTER WHEN IT REACHED AN AGREEMENT WITH CAPITAL CITIES/ABC INC IN THE US TO TELEVISE THE OSCAR FILM AWARDS CEREMONY BUT EDITORS HAD TO ACT FAST WHEN ACTOR RICHARD GERE SPEAKING AT THE CEREMONY CRITICIZED CHINA FOR HUMAN RIGHTS ABUSES SHANGHAI VIEWERS SAW A BLANK SCREEN BEFORE A SWITCH TO CHINESE ANCHOR VOICEOVERS STILL ORIENTAL RENEWED ITS CONTRACT WITH ABC FOR THE COMING YEAR MR ZHUANG SAID STV FOR ITS PART USES EXTENSIVE EXCERPTS FROM BBC WORLD SERVICE BROADCASTS FOR INTERNATIONAL NEWS AND EVEN FOR SOME NEWS ABOUT CHINA THE STATION SENT ITS OWN REPORTERS TO SEATTLE FOR A RECENT TRADE SUMMIT OF ASIAPACIFIC NATIONS BUT USED A BBC ACCOUNT OF CHINESE PRESIDENT JIANG ZEMIN'S VISIT THERE THOUGH LOCAL BROADCASTERS DON'T ADMIT IT HONG KONGBASED STAR TV NOW RUN BY RUPERT MURDOCH'S NEWS CORP SEEMS TO HAVE BEEN A CATALYST FOR MANY OF THESE CHANGES STAR'S DIRECTTOHOME SATELLITE BROADCASTS THREATENED CHINESE STATIONS' MONOPOLY OF THE AIRWAVES WITH A MIX OF MUSIC VIDEOS WESTERN FILMS CHINESE MOVIES BBC NEWS AND SPORTS LOCAL OFFERINGS ARE NOW REMARKABLY SIMILAR THE OPENING UP OF TELEVISION STATIONS IN CHINA HAS PERSUADED SOME ASIAN AND WESTERN PRODUCERS AND DISTRIBUTORS THAT THEY'RE BETTER OFF STRIKING AGREEMENTS WITH EXISTING STATIONS THAN RELYING ON STAR'S FORMULA OF UNWELCOME DIRECTTOHOME BROADCASTS TIME WARNER INC OFFERS AMERICAN SITCOMS DRAMAS AND FEATURE FILMS TO SHANGHAI AND OTHER CITY'S STATIONS THROUGH ITS HONG KONG REPRESENTATIVE SHANGHAI WILL LAUNCH AN ESPN SPORTS CHANNEL IN DECEMBER WHATEVER THE LIMITATIONS OF LOCAL TELEVISION MR HU THE MUSIC TEACHER SAYS THESE DAYS HIS FAMILY MEMBERS GATHER AROUND THE OVERSIZE PANASONIC WHICH DOMINATES ONE ROOM IN THEIR TWOROOM APARTMENT FOR THREETOFOUR HOURS A NIGHT I USED TO FEEL LIKE THEY SHOULD PAY ME TO WATCH THEIR TELEVISION SHOWS SAID MR HU REFERRING TO THE GOVERNMENT NOW I PAY THEM MONEY CAN YOU BELIEVE THAT 9312020128 931202 TECHNOLOGY & HEALTH FDA ISSUES TOUGHER RULES ON USE OF MAMMOGRAPHY WASHINGTON THE FOOD AND DRUG ADMINISTRATION ISSUED NEW FEDERAL RULES TOUGHENING THE STANDARDS FOR MAMMOGRAPHY MAMMOGRAMS ARE XRAYS USED TO DETECT BREAST CANCER BUT THE QUALITY AND ACCURACY OF MAMMOGRAMS CAN VARY GREATLY DEPENDING ON THE MAMMOGRAPHY MACHINE AND THE PERSON READING THE XRAYS THE FDA'S NEW REGULATIONS CARRY OUT A LAW CONGRESS PASSED IN 1992 THEY WILL REQUIRE ALL MAMMOGRAPHY FACILITIES AND ALL PROFESSIONALS READING THE MAMMOGRAMS TO BE CERTIFIED BY THE FDA OR A FEDERALLY APPROVED ACCREDITING AGENCY IN ADDITION ALL FACILITIES WILL UNDERGO AN ANNUAL INSPECTION BY FEDERAL OR STATE OFFICIALS 9312020127 931202 BUSINESS BRIEF BASS PLC PRETAX PROFIT INCREASED 74 FOR YEAR ON 32 SALES GAIN UK BREWERY AND HOTELS GROUP BASS PLC SAID THAT PRETAX PROFIT FOR THE YEAR ENDING SEPT 30 ROSE 74 FROM THE YEAR EARLIER TO 508 MILLION 7534 MILLION FOR THE PREVIOUS YEAR THE COMPANY POSTED PRETAX PROFIT OF 473 MILLION BASS MADE NO PROVISION FOR RESTRUCTURING COSTS UNLIKE THE 75 MILLION PROVISION OF THE YEAR EARLIER OVERALL SALES FOR THE YEAR ROSE 32 TO 445 BILLION FROM 431 BILLION IN ITS BREWERY DIVISION PROFIT FELL 82 TO 56 MILLION AS SALES ROSE 32 TO 160 BILLION 9312020125 931202 TECHNOLOGY PILKINGTON'S US UNIT LAUNCHES CONTACT LENS FOR SENSITIVE EYES SUNNYVALE CALIF PILKINGTON BARNES HIND USA IS INTRODUCING A REPLACEABLE CONTACT LENS MADE FROM A MATERIAL DESIGNED TO PROTECT SENSITIVE EYES FROM IRRITATIONS SUCH AS SMOKE POLLEN AND POLLUTION THE COMPANY'S NEW GENTLE TOUCH LENS WILL COMPETE IN A FASTGROWING MARKET FOR REPLACEABLE LENSES USERS CAN WEAR THE LENSES FOR ONE TO THREE MONTHS BEFORE REPLACING THEM AND LEAVE THEM IN AS LONG AS ONE WEEK SAYS PILKINGTON BARNES A DIVISION OF UKBASED PILKINGTON PLC MULTISTEP ENZYMATIC CLEANING ISN'T NEEDED FOR GENTLE TOUCH IT SAID THE LENS IS MADE FROM A PROTEINRESISTING MATERIAL NETRAFILCONA AND IS 65 WATER KEEPING THE LENS MORE FREE FROM FOREIGN PARTICLES AND WETTER IN THE EYE PILKINGTON SAYS THE COMPANY IS TARGETING WOMEN IN FASHION MAGAZINES WITH AN AD SHOWING A WOMAN WEARING CONTACTS IN A SMOKEY BAR THE REDUCEDCARE REGIMEN IS ALWAYS ATTRACTIVE TO THE MARKET SAYS OTTO F GROTE AN ANALYST WITH DERBY SECURITIES INC PILKINGTON ALREADY HAS SHELF SPACE SO THESE COULD MAKE IT ON THE MARKET IF THEY REALLY ARE MORE PROTEINRESISTANT GENTLE TOUCH WILL COST CONSUMERS ABOUT 15 FOR EACH LENS FOR AN ANNUAL COST OF 120 IF USERS REPLACE THEM EVERY THREE MONTHS FOR BAUSCH & LOMB'S MEDALIST REPLACEABLES THE COMPARABLE COST IS ABOUT 96 ANNUALLY DOCTORS SAY PILKINGTON WILL COMPETE PRIMARILY WITH BAUSCH JOHNSON & JOHNSON AND CIBAGEIGY LTD'S CIBA VISION CORP WHICH PRIMARILY DOMINATE THE 3 BILLION US CONTACTLENSPRODUCT MARKET PILKINGTON ALREADY IS DISTRIBUTING THE PRODUCT IN MAJOR CITIES AND EXPECTS NATIONAL DISTRIBUTION IN APRIL PILKINGTON BARNES HIND USA IS BASED IN SUNNYVALE CALIF AND MAKES CONTACT LENS AND LENSCARE MATERIALS 9312020124 931202 ENTERTAINMENT NEW THEME PARKS WILL TAKE OWNERS ON A RISKY RIDE BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL NEW AMUSEMENT PARKS APPEAR TO BE POPPING UP LIKE BURGER FRANCHISES LAST MONTH CAME THE ANNOUNCEMENTS OF TWO MAJOR NEW US THEME PARKS DISNEY'S AMERICA IN VIRGINIA AT A COST OF PERHAPS 800 MILLION AND THE 100 MILLION LEGO LAND IN CARLSBAD CALIF AT A THEMEPARK CONVENTION IN LOS ANGELES NEW HIGHTECH VIRTUAL REALITY RIDES WERE DISPLAYED AMONG THE BUMPER CARS AND KEWPIE DOLLS AMBITIOUS ENTERTAINMENT COMPANIES LIKE TIME WARNER INC AND PARAMOUNT COMMUNICATIONS INC HAVE MOVED INTO THE BUSINESS THE CITY OF CHICAGO IS TRYING TO ENTICE A MAJOR THEMEPARK COMPANY TO BUILD AN 800 MILLION COMPLEX THERE EVEN ARE PERSISTENT WHISPERS IN THEMEPARK CIRCLES THAT PARAMOUNT IS PLANNING A MAJOR PARK IN THE NEW YORK CITY AREA THE COMPANY WON'T COMMENT AND CAN'T ACT UNTIL ITS NEW OWNER IS DETERMINED BUT DON'T LOOK FOR A THEME PARK ON EVERY CORNER THE US MARKET IS PRETTY SATURATED AT THIS POINT SAYS LISBETH BARRON ANALYST AT SG WARBURG LEGO LAND AND DISNEY'S AMERICA ARE EXCEPTIONS EXPERTS SAY AND THEY BOTH REPRESENT GIANT RISKS A MAJOR REASON THE SAME DEMOGRAPHIC FORCES THAT CREATED A THEMEPARK EXPLOSION A GENERATION AGO ARE BEGINNING TO WORK AGAINST THE BUSINESS AS CASINOS AND COUNTRYMUSIC ENTREPRENEURS IN BRANSON MO CATER TO THE AGING BABY BOOMERS WHO ONCE CROWDED THEME PARKS WITH THEIR CHILDREN SOME THINK THAT SMALLSCALE URBAN THEME PARKS USING HIGHTECH SOFTWARE WILL BE THE WAVE OF THE FUTURE BUT SKEPTICS ARGUE THAT THE NOVELTY VALUE OF SUCH NARROWLYSCALED PARKS WILL WEAR OFF QUICKLY MANY HIGHTECH VIRTUALREALITY ATTRACTIONS ARE TURNING UP AT CASINOS AND SHOPPING CENTERS WHERE THEY ARE ADJUNCTS TO OTHER PURSUITS THEMEPARK GROWTH IN THE LAST COUPLE OF DECADES WAS FED NOT ONLY BY DEMOGRAPHICS BUT BY AN URBAN AND SUBURBAN LANDSCAPE THAT BECAME TOO FRIGHTENING FOR KIDS TO ROAM ALONE WHEN WE WERE YOUNG AND WE WANTED SOMETHING TO DO WE'D JUST GO DOWN AND PUT A BOAT IN THE RIVER SAYS 39YEAROLD ROBERT PITTMAN WHO RUNS TIME WARNER INC'S THEME PARKS BUT AS HIS GENERATION BECAME PARENTS AND SOUGHT DIVERSION FOR THEIR BROODS ITS MEMBERS PROVED MORE THAN WILLING TO PAY AT LEAST 20 APIECE TO VISIT A GATED CONTROLLED FUN ZONE REALIZING THIS WALT DISNEY CO RAISED PRICES FOR WALT DISNEY WORLD AND DISNEYLAND IN THE MID1980S MARKETED WITH A VENGEANCE AND FOUND CORPORATE NIRVANA DISNEY ADDED TO ITS PARKS AND MORE PEOPLE CAME THEN MCA INC'S UNIVERSAL STUDIOS EXPANDED ITS PARKS AND TIME WARNER AND PARAMOUNT BOUGHT PARK OPERATIONS WITH DEEP POCKETS WELLKNOWN CHARACTERS FROM THEIR MOVIES AND EXPERTISE IN MARKETING AND MERCHANDISING ENTERTAINMENT COMPANIES WERE WELLPOISED TO TAKE ADVANTAGE OF SOCIETAL CHANGES ANHEUSERBUSCH COS ANOTHER EXPERT MARKETER AND GAYLORD ENTERTAINMENT CO A COUNTRYMUSIC ORIENTED MEDIA COMPANY ALSO PLAYED THE GAME WELL BUT GROWTH IS UNIMPRESSIVE AMUSEMENT BUSINESS MAGAZINE SAYS OVERALL ATTENDANCE AT THE TOP 40 THEME PARKS ROSE 65 LAST YEAR AND HAROLD VOGEL SENIOR ENTERTAINMENT ANALYST WITH MERRILL LYNCH ESTIMATES THAT IN THE LONG TERM ATTENDANCE AT MOST MAJOR THEME PARKS WON'T GROW MORE THAN 15 TO 2 A YEAR YOU CAN'T EXPECT TO SEE TOO MANY MORE VIRGINIAS HE SAYS IT'S NOT THAT COMPANIES WOULDN'T LIKE TO EXPAND I'D PUT A THEME PARK OUTSIDE PHOENIX OR DENVER IN A SECOND SAYS ONE THEMEPARK EXECUTIVE BUT IT COSTS TOO MUCH BUILDING A THEME PARK FROM SCRATCH REQUIRES COSTLY LAND ACQUISITION AND CONSTRUCTION AND LABOR COSTS ARE FAR HIGHER THAN A GENERATION AGO IT'S MUCH EASIER TO DO WHAT TIME WARNER PARAMOUNT AND ANHEUSERBUSCH DID BUY EXISTING PARKS BUILT DURING THE 1970S BOOM TRYING TO CUT CORNERS COULD BE COSTLY YOU CAN'T GET AWAY WITH AN UNSOPHISTICATED PRODUCT MR VOGEL SAYS THE AUDIENCE IS TOO USED TO HIGH PRODUCTION VALUES AFTER 25 YEARS OF WATCHING TELEVISION PEOPLE GREW UP THINKING OF A THEME PARK AS SOMETHING LIKE DISNEYLAND IT SETS THE STANDARD ENTRY LEVEL FOR A DECENT THEME PARK IS 300 MILLION TO 500 MILLION MR VOGEL ESTIMATES AND ADMISSION PRICES MUST BE ABOUT 25 PER PERSON TO MAKE THAT WORK LEGO LAND IS DEFYING THE RULE AND GAMBLING THAT IT HAS FOUND A NICHE THAT WILL WORK IN A HUGE POPULATION CENTER APPEALING TO KIDS TOO YOUNG FOR ROLLER COASTERS IT'S A MARKET SEGMENT THAT'S BEEN UNDERADDRESSED SAYS JOSEPH MANNA DIRECTOR OF NEW VENTURES AND LICENSING FOR LEGO SYSTEMS INC BASED IN DENMARK LEGO SAYS ITS TARGET IS FAMILIES AND CHILDREN AGED TWO TO 13 BUT IT'S THE THREE TO FIVEYEAROLDS THAT PROBABLY WILL PREDOMINATE AN AUDIENCE THAT WON'T DEMAND SPECTACULAR DETAIL AND JAWDROPPING EFFECTS LEGO LAND'S TARGET IS LESS THAN 2 MILLION VISITORS A YEAR COMPARED WITH THE NEARLY 12 MILLION ANNUAL VISITORS TO DISNEYLAND LEGO NEEDS TO BE IN DENSELY POPULATED SOUTHERN CALIFORNIA BECAUSE LIKE EVERYONE EXCEPT DISNEY AND MCA IT IS BUILDING A REGIONAL PARK ONE THAT MUST DRAW REPEAT BUSINESS FROM A MOSTLY LOCAL BASE AND EVEN THE BIGGEST REGIONAL PARKS ARE IN SOME SENSE JUST OVERGROWN CARNIVAL SHOWS WHERE COMPETITION IS VICIOUS AND BAD WEATHER CAN KILL YOU WHEN THE MISSISSIPPI RIVER FLOODED ST LOUIS LAST SPRING IT HURT A NEARBY SIX FLAGS PARK MOST MAJOR CITIES ALREADY HAVE AT LEAST ONE REGIONAL PARK TIME WARNER BOASTS THAT 85 OF THE US POPULATION LIVES WITHIN A DAY'S DRIVE OF ONE OF ITS SEVEN SIX FLAGS PARKS A DECADE AGO IT MIGHT HAVE BEEN POSSIBLE TO COMPETE WITH SIX FLAGS OR PARAMOUNT'S FIVE KINGS PARKS THEY MOSTLY HAD ROLLER COASTERS AND OTHER IRON RIDES APPEALING TO TEENAGERS BUT TIME WARNER BROUGHT IN BATMAN AND SPORTS ILLUSTRATED SPORTS FEST THEMES AND PARAMOUNT TIED IN WITH DAYS OF THUNDER AND TOP GUN WE PUT THE FANTASY BACK THE THING DISNEY DOES SO WELL SAYS TIME WARNER'S MR PITTMAN NOW WHEN YOU WALK INTO A WESTERNTHEMED AREA THE EMPLOYEES ARE WEARING WESTERN CLOTHES IT'S NOT SOME GUY IN KHAKI PANTS AND AN IZOD SHIRT WITH A SIX FLAGS LOGO BUT SINCE REGIONAL PARKS ATTRACT MOSTLY LOCAL RESIDENTS OPERATORS NEED TO BUILD A BIGGER FASTER OR SPLASHIER ATTRACTION NEARLY EVERY YEAR IN THE WARMWEATHER DESTINATION RESORTS OF FLORIDA AND SOUTHERN CALIFORNIA COMPETITION HELPS RATHER THAN HURTS BECAUSE IT LENGTHENS VISITORS' STAYS AND BOTH DISNEY AND MCA A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO HAVE ANNOUNCED EXTENSIVE ADDITIONS TO THEIR PARKS BUT THERE IS A DOWNSIDE RECESSIONS AND AIRLINEPRICE HIKES EXACERBATE AN EXISTING TREND MORE AMERICANS ARE TAKING SHORTER VACATIONS AS SCHEDULES GET TIGHTER THE TRUE CHALLENGE FOR THEME PARKS MAY BE TO APPEAL TO THE GROWING NUMBERS OF AGING BABY BOOMERS BEFORE THEY DRIFT AWAY DISNEY'S AMERICANHISTORY THEME MIGHT HELP IT APPEAL TO OLDER VISITORS WHO SHUN OTHER PARKS SOME 133 MILLION PEOPLE ALREADY TRAVEL TO THE NATION'S CAPITAL DISNEY CLEARLY BELIEVES THAT IT CAN DRAW A LARGE SHARE OF THAT CROWD IT CERTAINLY ISN'T INTERESTED IN BUILDING A REGIONAL PARK FOR LOCALS SAYS AN ADMIRING RIVAL THEY WOULDN'T EVEN KNOW HOW TO DO ONE CHEAPLY 9312020123 931202 WHO'S NEWS THOMAS GROUP INC THOMAS GROUP INC DALLAS SCOTT H LANG 47 YEARS OLD WAS NAMED TO THE BOARD OF THIS MANAGEMENT CONSULTING FIRM INCREASING THE BOARD'S SIZE TO SEVEN MR LANG IS EXECUTIVE VICE PRESIDENT AND MANAGING DIRECTOR OF INVESTMENT BANKING AT RODMAN & RENSHAW INC AND WAS FORMERLY A PARTNER IN THE LAW FIRM OF ARNOLD & PORTER IN WASHINGTON 9312020122 931202 WHO'S NEWS CARAUSTAR INDUSTRIES INC CARAUSTAR INDUSTRIES INC ATLANTA JAMES E ROGERS WAS NAMED TO THE BOARD OF THIS PRODUCER OF RECYCLED PAPERBOARD MR ROGERS 48 YEARS OLD IS MANAGING DIRECTOR OF SCI INVESTORS INC RICHMOND VA HIS APPOINTMENT INCREASES CARAUSTAR'S BOARD TO 10 MEMBERS 9312020121 931202 LAW COURT FINDS FIRM LIABLE FOR WORKER DRIVING DRUNK BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL COMPANIES MAY HAVE AN OBLIGATION TO PREVENT THEIR EMPLOYEES FROM DRIVING DRUNK AFTER BUSINESS FUNCTIONS A FLORIDA APPEALS COURT RULED THE RULING UPHELD AN EXTRAORDINARY JURY AWARD OF 800000 IN PUNITIVE DAMAGES ARISING OUT OF A TRAFFIC DEATH CAUSED BY THE EMPLOYEE OF A TAMPA FLA COMPANY THE EMPLOYEE WHO WAS LEGALLY DRUNK WAS DRIVING HOME FROM A BUSINESS CONVENTION THE OPINION BY FLORIDA'S FOURTH DISTRICT COURT OF APPEAL IS SIGNIFICANT BECAUSE IT EXTENDS A COMPANY'S LIABILITY TO DRINKING CONNECTED TO AN EMPLOYEE'S OFFPREMISES ENTERTAINMENT OF CLIENTS IT ALSO GREATLY EXPANDS CORPORATE LIABILITY IN ALL CASES OF EMPLOYEE DRINKING BECAUSE IT HOLDS EMPLOYERS LIABLE FOR PUNITIVE DAMAGES IF THEY WERE AWARE OR SHOULD HAVE BEEN AWARE THAT AN EMPLOYEE WASN'T FIT TO DRIVE JEFFREY FISHER A WEST PALM BEACH FLA LAWYER WHO REPRESENTED THE PLAINTIFF IN THE CASE DESCRIBED THE COURT'S OPINION AS A RULING THAT DRINKING AND DRIVING IS INHERENTLY DANGEROUS IT'S NOT SOCIALLY ACCEPTABLE AND WE'RE GOING TO DO MORE THAN COMPENSATE VICTIMS IN SUCH CASES WE'RE GOING TO PUNISH THE CASE AROSE AFTER JOHN MILLS A SALESMAN FOR CARROLL AIR SYSTEMS INC CRASHED INTO ANOTHER CAR KILLING TWO PASSENGERS WHILE DRIVING HOME FROM A DINNER DANCE AT A CONVENTION OF HEATING REFRIGERATING AND AIRCONDITIONING ENGINEERS BEFORE THE ACCIDENT MR MILLS HAD DRINKS AT A HOTEL BAR WITH SOME OFFICERS AND CUSTOMERS OF THE COMPANY IN ADDITION TO THE PUNITIVE DAMAGES WHICH ARE AWARDED TO PUNISH PARTICULARLY EGREGIOUS BEHAVIOR A JURY IN 1991 ASSESSED THE COMPANY 85000 IN COMPENSATORY DAMAGES CARROLL AIR WAS NOT MERELY A SOCIAL HOST AT THE MEETING IN WHICH MR MILLS IMBIBED EXCESSIVELY THE APPEALS COURT SAID IN ITS OPINION UNLIKE THE SOCIAL HOST AN EMPLOYER HAS A FAR GREATER ABILITY TO CONTROL THE ACTIONS OF ITS EMPLOYEES COURT CASES IN THE PAST HAVE FOUND COMPANIES LIABLE FOR ACCIDENTS THAT RESULTED AFTER DRUNKEN CHRISTMAS PARTIES PICNICS AND OTHER COMPANYSPONSORED EVENTS IN A 1982 NORTH CAROLINA CASE FOR EXAMPLE A FEDERAL JUDGE RULED THAT AN EMPLOYER COULD BE LIABLE FOR INJURIES TO EMPLOYEES WHO BECAME INTOXICATED AT COMPANYSPONSORED PARTIES BUT THE CARROLL AIR CASE APPEARS TO EXPAND THOSE RULINGS BY HOLDING COMPANIES RESPONSIBLE FOR DRINKING EVEN AT EVENTS THEY DON'T SPONSOR AND ON PREMISES THEY DON'T CONTROL THE COURT SAID THE JURY REASONABLY CONCLUDED THAT THE EVENTS ON THE EVENING OF THE ACCIDENT WERE FOR THE COMPANY'S BENEFIT RATHER THAN PURELY SOCIAL THE COURT ADDED FOR EXAMPLE THAT THE COMPANY DEDUCTED THE COST OF THE DRINKS AS A BUSINESS EXPENSE 9312020120 931202 ECONOMY MANUFACTURING EXPANDED AGAIN IN NOVEMBER SECOND CONSECUTIVE INCREASE IS REPORTED IN A SURVEY OF PURCHASING MANAGERS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MANUFACTURING SECTOR EXPANDED IN NOVEMBER FOR THE SECOND CONSECUTIVE MONTH A SURVEY OF PURCHASING MANAGERS SUGGESTS THE REPORT FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT OFFERS FURTHER EVIDENCE THAT THE NATION'S FACTORIES ARE GAINING MOMENTUM AFTER MONTHS OF STAGNATION AND DECLINE THE ASSOCIATION'S INDEX ROSE TO 557 LAST MONTH AFTER A READING OF 538 IN OCTOBER PERFORMANCE WAS DRIVEN UP MAINLY BY INCREASES IN PRODUCTION AND ORDERS BEFORE OCTOBER THE INDEX HAD SUGGESTED A CONTRACTION IN THE MANUFACTURING SECTOR FOR FOUR CONSECUTIVE MONTHS A READING ABOVE 50 GENERALLY MEANS THAT THE MANUFACTURING SECTOR IS EXPANDING THE INCREASED FACTORY ACTIVITY OCCURRED WITHOUT INFLATION PRICES IN NOVEMBER DECLINED FOR THE THIRD CONSECUTIVE MONTH FINALLY GOOD NEWS SAID ROBERT BRETZ WHO HEADS THE PURCHASING SURVEY AND IS DIRECTOR OF CORPORATE PURCHASING AT PITNEY BOWES INC THE MANUFACTURING SECTOR APPEARS TO BE GETTING STRONGER HOWEVER THAT STRENGTH DOESN'T YET SEEM TO BE TRANSLATING INTO NOTICEABLE EMPLOYMENT GAINS THE EMPLOYMENT COMPONENT OF THE INDEX DECLINED AGAIN IN NOVEMBER SEPARATELY THE COMMERCE DEPARTMENT SAID THE ECONOMY GREW AT A 27 ANNUAL RATE IN THE THIRD QUARTER THAT'S ONLY SLIGHTLY LOWER THAN THE INITIAL 28 ESTIMATE ISSUED LAST MONTH AND FAR BETTER THAN THE 19 RATE IN THE SECOND QUARTER AND 08 RATE IN THE FIRST THE DOWNWARD REVISION MAINLY RESULTED FROM A BIGGER DETERIORATION IN THE TRADE DEFICIT THAN ORIGINALLY THOUGHT CAUSED BY MUCH STRONGER IMPORT GROWTH AND A SLIGHTLY BIGGER DECLINE IN US EXPORTS BUT THE REVISIONS ALSO BROUGHT SOME GOOD NEWS CONSUMER PURCHASES AND BUSINESS INVESTMENT BOTH WERE STRONGER THAN INITIALLY THOUGHT THERE WAS ALSO LESS INVESTMENT IN INVENTORIES THAT COULD MEAN MORE PRODUCTION IN FUTURE QUARTERS AS MANUFACTURERS WORK TO REPLENISH STOCKPILES IN THE SAME REPORT THE DEPARTMENT ALSO SAID AFTERTAX CORPORATE PROFITS ROSE AT A 08 ANNUAL RATE IN THE THIRD QUARTER TO A RECORD LEVEL THE GAIN COMES ON TOP OF AN UPWARDLY REVISED 52 INCREASE IN THE SECOND QUARTER CJ LAWRENCE CHIEF ECONOMIST ED YARDENI SAID THAT DESPITE SLOW REVENUES BUSINESSES HAVE MANAGED TO POST PROFITS BECAUSE OF COSTCUTTING AND PRODUCTIVITY ENHANCEMENTS IN OTHER ECONOMIC NEWS THE COMMERCE DEPARTMENT SAID CONSTRUCTION SPENDING ROSE 19 TO 414 BILLION IN OCTOBER AFTER ADJUSTMENTS FOR INFLATION FOLLOWING A 14 RISE IN SEPTEMBER THE INCREASE WAS FAIRLY BROADBASED CONSTRUCTION OF RESIDENTIAL COMMERCIAL AND PUBLIC BUILDINGS INCREASED WHILE COMMERCIAL CONSTRUCTION SLIPPED SLIGHTLY ELLIOTT PLATT CHIEF ECONOMIST OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP SAID THE RECENT PICKUP IN CONSTRUCTION WILL BE A MAJOR CONTRIBUTOR TO ECONOMIC GROWTH IN THE FOURTH QUARTER THE US MERCHANDISE TRADE DEFICIT ON A BALANCEOFPAYMENTS BASIS WIDENED TO 3628 BILLION IN THE THIRD QUARTER THE COMMERCE DEPARTMENT SAID ON THE SAME BASIS THE DEFICIT TOTALED A REVISED 3438 BILLION IN THE SECOND QUARTER THE QUARTERLY FIGURES ARE BASED ON THE MERCHANDISE TRADE FIGURES REPORTED MONTHLY BY THE DEPARTMENT BUT EXCLUDE MILITARY SALES AND REFLECT CERTAIN OTHER ADJUSTMENTS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE THIRD QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1245 FROM 124 IN THE PREVIOUS QUARTER 9312020119 931202 WHO'S NEWS LUBRIZOL CORP LUBRIZOL CORP CLEVELAND THIS CHEMICAL CONCERN NAMED FIVE NEW VICE PRESIDENTS JAMES G BULGER 58 YEARS OLD FORMERLY SENIOR VICE PRESIDENT SALES FOR THE COMPANY'S LUBRIZOL PETROLEUM CHEMICALS CO UNIT WAS NAMED VICE PRESIDENT SALES STEPHEN A DI BIASE 41 FORMERLY DIRECTOR STRATEGIC RESEARCH WAS NAMED VICE PRESIDENT RESEARCH AND DEVELOPMENT JOE E HODGE 51 FORMERLY GENERAL MANAGER HOUSTON PLANTS WAS NAMED VICE PRESIDENT OPERATIONS STEPHEN F KIRK 44 FORMERLY SENIOR VICE PRESIDENT MARKETING AND TECHNOLOGY FOR LUBRIZOL PETROLEUM CHEMICALS WAS NAMED VICE PRESIDENT SEGMENT MANAGEMENT AND YANNICK LE COUDIC 46 FORMERLY DIVISION HEAD RESEARCH AND DEVELOPMENT ADMINISTRATION SERVICES WAS NAMED VICE PRESIDENT MANAGEMENT INFORMATION SYSTEMS 9312020118 931202 BUSINESS BRIEF BOEING ANNOUNCES FURTHER WORK FORCE AND PRODUCTION CUTS SEATTLE BOEING CO AS EXPECTED SAID IT WILL CUT PRODUCTION OF ITS SMALLER 737 AIRLINERS AND 747 JUMBO JETS IN THE FACE OF CONTINUED WEAKNESS FOR COMMERCIALAIRPLANE ORDERS BOEING WHICH ALREADY HAS BEEN CUTTING PRODUCTION 46 THROUGH 1994 SAID IT WILL REDUCE THE RATE AT WHICH IT MAKES 747S TO TWO A MONTH IN JANUARY 1995 FROM THREE A MONTH NOW THE COMPANY HAD BEEN IN THE PROCESS OF CUTTING 747 PRODUCTION TOWARD A THREEMONTHLY OUTPUT BY NEXT FEBRUARY FROM FIVE A MONTH BOEING SAID ITS PLAN FOR SCALING BACK PRODUCTION OF THE TWINENGINE 737 CALLS FOR OUTPUT AT A RATE OF 85 MONTHLY A YEAR FROM NOW COMPARED WITH 10 A MONTH NOW THE LATEST REDUCTIONS WILL ELIMINATE BETWEEN 2000 AND 3000 JOBS AT ITS MAXIMUM THE JOB CUTS WOULD EQUAL ABOUT 34 OF THE 89000 JOBS BOEING PROVIDES IN THE SEATTLE AREA WHERE MOST OF THE COMPANY'S AIRPLANEMAKING OPERATIONS ARE LOCATED THE COMPANY HAS SAID ITS EARLIER PRODUCTION CUTS ANNOUNCED EARLY THIS YEAR WILL COST 27000 JOBS WITH THE IMPACT EXTENDING INTO THE SECOND HALF OF 1994 OVERALL BOEING EMPLOYS ABOUT 118500 WORKERS IN AIRLINER DEFENSERELATED AND SPACE OPERATIONS ITS MILITARYPRODUCT BUSINESS ALSO HAS BEEN HIT HARD BY CUTBACKS IN GOVERNMENT SPENDING BOEING SAID YESTERDAY THAT A FORECAST OF COMPANYWIDE EMPLOYMENT FOR 1994 IS STILL BEING ASSESSED AND WILL BE ANNOUNCED EARLY NEXT YEAR RONALD WOODARD A BOEING EXECUTIVE VICE PRESIDENT SAID IN A STATEMENT THAT WHILE THERE ARE SOME SIGNS OF IMPROVEMENT IN THE AIR TRAVEL MARKET LOSSES OR INADEQUATE PROFITS CONTINUE AT MANY AIRLINES UNTIL MORE CUSTOMERS ORDER NEW AIRPLANES HE SAID PRODUCTION MUST BE CUT AS PAINFUL AS THAT IS FOR OUR EMPLOYEES FOR OUR SUPPLIERS AND FOR OUR COMMUNITIES IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BOEING SHARES FELL 75 CENTS TO 37875 9312020117 931202 WHO'S NEWS MTS SYSTEMS CORP MTS SYSTEMS CORP EDEN PRAIRIE MINN BOBBY I GRIFFIN EXECUTIVE VICE PRESIDENT OF MEDTRONIC INC AND PRESIDENT OF ITS PACEMAKER UNIT WAS ELECTED A DIRECTOR OF THIS MAKER OF COMPUTERBASED TESTING AND SIMULATION SYSTEMS FILLING A VACANCY 9312020116 931202 MAZUR GETS 6 YEARS FINES FOR REAL ESTATE PARTNERSHIP FRAUD LOS ANGELES A FEDERAL JUDGE SENTENCED SHERMAN MAZUR A REAL ESTATE PARTNERSHIP SYNDICATOR TO SIX YEARS IN PRISON FOR BANKRUPTCY FRAUD AND CONSPIRACY US DISTRICT JUDGE RONALD S W LEW ALSO ORDERED MR MAZUR TO PAY 500000 IN RESTITUTION AND 250000 IN FINES MR MAZUR'S ATTORNEY COULDN'T BE REACHED MR MAZUR PLEADED GUILTY IN JULY TO SEVEN COUNTS OF BANKRUPTCY AND TAX FRAUD THE 44YEAROLD LOS ANGELES RESIDENT WAS CHARGED WITH DIVERTING ABOUT 1 MILLION OUT OF HUNDREDS OF BANKRUPT REALESTATE PARTNERSHIPS SEVERAL YEARS AGO MR MAZUR ALSO WAS SENTENCED FOR IMPROPERLY TAKING SALES PROCEEDS FROM ANOTHER PARTNERSHIP INSTEAD OF PAYING UNSECURED CREDITORS OF THE PARTNERSHIP AS HE HAD PROMISED THE BANKRUPTY COURT 9312020115 931202 INTERNATIONAL JAPANESE ECONOMY ISN'T LIKELY TO GET A BOOST FROM LOWER GLOBAL OIL PRICES BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO ONE WOULD THINK THAT WITH JAPAN'S HEAVY DEPENDENCE ON IMPORTED OIL THE RECENT DROP IN CRUDE PRICES WOULD BE CAUSE FOR JOY UNFORTUNATELY FOR A NATION IN DIRE NEED OF SOME ECONOMIC BRIGHT SPOTS LOWER GLOBAL OIL PRICES AREN'T LIKELY TO MAKE MUCH DIFFERENCE TO USERS BE THEY COMPANIES OR INDIVIDUALS CORPORATE JAPAN FOR ONE IS SO MIRED IN A GRUELING ECONOMIC DOWNTURN THAT FEW INDUSTRIES ARE IN A POSITION TO TAKE ADVANTAGE OF CHEAPER ENERGY COSTS EVEN SECTORS THAT RELY HEAVILY ON OIL IMPORTS SUCH AS STEEL AND PETROCHEMICAL PRODUCERS ARE DRASTICALLY SCALING BACK OPERATIONS THUS CONSUMING LESS IMPORTED OIL AFTER INDUSTRIAL PRODUCTION SOARED IN THE HEADY YEARS OF THE LATE 1980S PLUMMETING DOMESTIC DEMAND IS NOW CAUSING CORPORATE OUTPUT TO REGISTER RECORDLEVEL DECLINES DOLLARDENOMINATED OIL PRICES HAVE FALLEN MORE THAN 10 THIS YEAR MEANWHILE THE YEN HAS APPRECIATED BY 15 AGAINST THE DOLLAR MAKING ALREADY CHEAP DOLLARBASED OIL EVEN CHEAPER FOR YENBASED IMPORTERS BUT WHILE SOME OF JAPAN'S BIG OIL IMPORTERS ARE USING THE BENEFITS TO POST TREMENDOUS OPERATING PROFIT INCREASES MUCH OF THAT WINDFALL IS BEING EATEN AWAY BY THE WORKOUT OF DEBTS AND OVEREXPANSION DURING THE BOOM JAPAN'S BIG OIL COMPANIES ENJOY A VIRTUAL MONOPOLY ON IMPORTS BUT THEY PAY FOR THAT RIGHT THROUGH BURDENSOME REGULATIONS SUCH AS A RULE THAT SAYS IMPORTERS MUST MAINTAIN 70 DAYS WORTH OF STOCK ON HAND LEST JAPAN GET HIT BY ANOTHER OIL SHOCK FOR NIPPON OIL CO JAPAN'S BIGGEST IMPORTER THE COST OF MAINTAINING THE STOCK WAS FOUR TIMES THE COMPANY'S PRETAX PROFITS FOR THE YEAR TO MARCH 1993 ACCORDING TO NICHOLAS SMITH AN ANALYST AT JARDINE FLEMING SECURITIES WHEN CONSIDERING THE HIGH COST OF GASOLINE IN JAPAN YOU HAVE TO LOOK AT OTHER THINGS AS WELL SUCH AS HIGH REALESTATE AND LABOR COSTS AND THE STEEP TAXES ON GASOLINE SAID TOSHIAKI USHIJIMA AN ADVISER TO MITSUBISHI OIL CO AND FOR INDIVIDUALS THE LOWER CRUDE PRICES SIMPLY AREN'T TRICKLING DOWN TO THE GAS PUMP SO THERE WON'T BE ANY EXTRA CASH SUDDENLY LAYING AROUND FOR OTHER CONSUMER SPENDING THE PETROLEUM ASSOCIATION OF JAPAN SAYS THE PRICE OF A LITER OF GAS AT THE AVERAGE FILLING STATION IN TOKYO HAS FALLEN BY A PALTRY TWO YEN THIS YEAR LESS THAN 2 GAS IS STILL VERY EXPENSIVE AVERAGING THE EQUIVALENT OF ABOUT 440 A GALLON IF THERE ARE ANY BENEFICIARIES OF THE OILPRICE DROP THEY ARE THE NUMEROUS GASOLINE MIDDLEMEN AND RETAILERS ANALYSTS SAY MANY GAS STATION OPERATORS LARGELY INDEPENDENT FROM SUPPLIERS HAVE BEEN SUFFERING LOSSES SINCE THE GOVERNMENT BEGAN DEREGULATING THE INDUSTRY IN THE 1980S AND SINCE THEIR ALREADY THIN MARGINS ARE SQUEEZED FURTHER BY THE RECESSION FEW ARE WILLING TO CUT PRICES MIDDLEMEN AND RETAILERS HAVE BEEN OPERATING IN THE RED FOR A LONG TIME SAID MR SMITH OF JARDINE FLEMING NOW THEY WANT TO CLAW AT ANYTHING THEY CAN GET AS IN MANY OTHER INDUSTRIES JAPAN'S OIL POLICIES HAVE LONG FAVORED BUSINESS AT THE EXPENSE OF THE CONSUMER AFTER SURGING CRUDE PRICES IN THE WAKE OF THE OIL SHOCK OF 1973 SENT THE NATION INTO A PANIC JAPAN IMPORTS ALMOST ALL OF ITS OIL BUREAUCRATS ALLOWED OIL COMPANIES TO RAISE CONSUMER GASOLINE PRICES BY 50 MORE THAN THE PRICE INCREASES ALLOWED ON OIL PRODUCTS USED AT MANUFACTURERS TWENTY YEARS LATER DESPITE PARTIAL DEREGULATION OF THE INDUSTRY THAT PRICE STRUCTURE IS STILL IN PLACE THE COALITION GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA HOWEVER HAS PROMISED TO SEEK WAYS OF PASSING ON THE BENEFIT OF THE STRONG YEN TO CONSUMERS A GOVERNMENT ADVISORY COMMITTEE RELEASED A REPORT YESTERDAY CALLING FOR EASIER RESTRICTIONS ON OIL IMPORTS TO CLOSE THE GAP BETWEEN GASOLINE PRICES IN JAPAN AND ABROAD 9312020114 931202 PROFIT AT FORD POISED TO CLIMB TROTMAN SAYS CAR MAKER'S NEW CHIEF SEES STRENGTH IN US IN '94 SMALLER LOSS IN EUROPE BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO'S PROFIT IS POISED TO IMPROVE SUBSTANTIALLY NEXT YEAR AS THE US VEHICLE MARKET CONTINUES TO STRENGTHEN AND AS FORD ROLLS OUT A SERIES OF NEW PRODUCTS ACCORDING TO ALEXANDER J TROTMAN FORD'S NEW CHIEF THE NO 2 US AUTO MAKER HAS COME UNDER CRITICISM ON WALL STREET THIS YEAR FOR EARNING LESS PER CAR THAN CHRYSLER CORP DESPITE FORD'S LOWER PRODUCTION COSTS AT A LUNCHEON WITH JOURNALISTS MR TROTMAN ACKNOWLEDGED THAT THE GAP REFLECTED HIGH COSTS ASSOCIATED WITH MARKETING A SERIES OF STALE FORD PRODUCTS HE DECLINED TO ISSUE A SPECIFIC PROFIT FORECAST MR TROTMAN HAS JUST COMPLETED HIS FIRST 30 DAYS AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER HAVING SUCCEEDED HAROLD A POLING WHO RETIRED NOV 1 AMONG OTHER THINGS MR TROTMAN SAID HE BELIEVES US VEHICLE SALES NEXT YEAR WILL REACH THE HIGHER END OF FORD'S CURRENT PREDICTION OF 145 MILLION TO 15 MILLION UNITS FORD EXPECTS SALES THIS YEAR TO TOTAL 141 MILLION VEHICLES UP ONE MILLION UNITS FROM 1992 LOSSES AT FORD'S HUGE EUROPEAN UNIT WILL NARROW IN 1994 AS EUROPE'S CAR MARKET BEGINS A SLOW RECOVERY BUT MR TROTMAN DECLINED TO DISCLOSE HOW MUCH THE LOSSES MIGHT BE THIS YEAR OR NEXT YEAR HE SAID FORD OF EUROPE WILL BENEFIT FROM A RESTRUCTURING PROGRAM THAT'S REDUCING EMPLOYMENT BY 17000 WORKERS TO AN EXPECTED 83000 FORD WON'T INVEST ANY MORE IN JAPAN'S MAZDA MOTOR CORP IN WHICH IT HOLDS A 25 INTEREST MR TROTMAN ACKNOWLEDGED THAT MAZDA IS ONE OF THE HARDESTPRESSED JAPANESE AUTO MAKERS BUT SAID FORD IS INTERESTED IN FURTHER PRODUCTSHARING WITH MAZDA DESPITE THE JAPANESE AUTO INDUSTRY'S PROBLEMS RELATED TO THE STRONG YEN AND THE WEAK JAPANESE ECONOMY FORD'S MOST POTENT COMPETITOR IS STILL TOYOTA MOTOR CORP HE GAVE PRESIDENT CLINTON GOOD GRADES FOR BEING ACCESSIBLE TO THE AUTO INDUSTRY AND HIS HANDLING OF THE ECONOMY BUT HE SAID FORD WOULD PREFER THAT THE ADMINISTRATION TAKE A STRONGER STANCE ON THE AUTOTRADE GAP WITH JAPAN FOR THE FIRST NINE MONTHS OF THE YEAR FORD POSTED NET INCOME OF 18 BILLION OR 324 A SHARE ON REVENUE OF 807 BILLION A SUBSTANTIAL TURNAROUND FROM A YEAREARLIER NET LOSS OF 65 BILLION OR 1377 A SHARE BUT FORD'S PROFIT IN THE US HAS BEEN ABOUT 1000 A CAR LESS THAN CHRYSLER'S ESTIMATES DAVID HEALY AN ANALYST WITH SG WARBURG & CO FOR THE SHORT TERM I'M NOT DISTURBED BY THAT AT ALL MR TROTMAN SAID HE SAID THAT AS SALES IMPROVE FORD'S MARKETING EXPENSES WILL SHRINK MOREOVER HE ACKNOWLEDGED HAVING SPENT SUBSTANTIAL SUMS TO KEEP SEVERAL TIRED PRODUCTS ALIVE IN THE MARKET INCLUDING THE COMPACT TEMPO AND SPORTY MUSTANG MODELS AS NEW PRODUCTS ROLL OUT ONE EVERY QUARTER OUR PROFITABILITY WILL IMPROVE MR TROTMAN SAID HE PREDICTED THAT FORD WILL BE HARDPRESSED TO BUILD ENOUGH NEW MUSTANGS TEMPO REPLACEMENTS NEW WINDSTAR MINIVANS AND NEW ASPIRE SUBCOMPACTS TO KEEP UP WITH DEMAND WHILE HE SAID FORD WOULD BE PLEASED IF IT MAINTAINED ITS 25 SHARE OF THE US MARKET HE INDICATED THAT HE WILL PUSH TO CONTINUE FORD'S DECADELONG RISE IN MARKET SHARE OBSERVING THAT FORD'S MARKETING EXPENSES BALLOONED TO 16 OF SALES IN 1991 BEFORE SHRINKING TO 12 LAST YEAR AND AN EXPECTED 11 THIS YEAR MR TROTMAN SAID FORD HAS BUDGETED FOR A SUBSTANTIAL REDUCTION IN SUCH OUTLAYS NEXT YEAR HE DECLINED TO BE SPECIFIC BUT SAID THAT IN FORD'S RECORD EARNINGS YEAR 1988 MARKETING COSTS AMOUNTED TO JUST 6 OF SALES ALTHOUGH MR TROTMAN WOULDN'T FORECAST PROFITS SG WARBURG'S MR HEALY ESTIMATES FORD'S NET INCOME THIS YEAR AT 24 BILLION VS A 145 MILLION LOSS FOR 1992 HE PROJECTS 1994 NET INCOME AT 42 BILLION LOOKING FURTHER AHEAD MR TROTMAN SAID HE AGREED WITH INDUSTRY EXPECTATIONS THAT US VEHICLE SALES WILL HIT 165 MILLION TO 17 MILLION UNITS IN THE MID1990S THE ASIAPACIFIC REGION WILL BE THE ENGINE FOR FORD'S FUTURE GROWTH MR TROTMAN SAID OVER THE NEXT DECADE HE SAID FORD NEEDS TO EXPAND ITS SHARE OF THE ASIAPACIFIC MARKET TO 10 OR 12 FROM ITS PRESENT 2 1/2 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FORD SHARES JUMPED 1875 TO CLOSE AT 62625 9312020113 931202 ORION CAPITAL APPROVES BUYBACK NEW YORK ORION CAPITAL CORP SAID ITS BOARD AUTHORIZED AN ADDITIONAL 75 MILLION FOR REPURCHASE OF THE COMPANY'S COMMON STOCK THE SPECIALTY PROPERTY AND CASUALTY INSURANCE CONCERN HAS ABOUT 950000 REMAINING FROM PREVIOUS AUTHORIZATIONS IN NOVEMBER ORION REPURCHASED ABOUT 89950 OF ITS COMMON SHARES FOR ABOUT 27 MILLION THE COMPANY HAS ABOUT 147 MILLION SHARES OUTSTANDING 9312020112 931202 WHO'S NEWS FIVE OF NINE DIRECTORS INCLUDING FOUNDER QUIT FIRST CASH BOARD ARLINGTON TEXAS FIRST CASH INC SAID FIVE OF ITS NINE DIRECTORS INCLUDING FOUNDER JOHN R PAYNE RESIGNED IN A STATEMENT THE PAWNSHOP OPERATOR SAID THE DIRECTORS RESIGNED AMICABLY TO PURSUE PERSONAL AND PROFESSIONAL MATTERS OUTSIDE THE COMPANY HOWEVER A FIRST CASH SPOKESWOMAN LATER SAID THAT DIFFERENCES OVER MANAGEMENT STRATEGIES CONTRIBUTED TO THE DEPARTURES DETAILS WEREN'T DISCLOSED NONE OF THE FIVE INCLUDING MR PAYNE COULD BE REACHED THE SPOKESWOMAN SAID RICK POWELL FIRST CASH'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS TRAVELING AND UNAVAILABLE TO COMMENT IN ADDITION TO MR PAYNE ROBERT J HUDIBERG TOMMY ABBOTT BILLY DELP AND LOUIS GIBSON RESIGNED FIRST CASH SAID IT NAMED RICHARD T BURKE FOUNDER OF UNITED HEALTHCARE CORP TO A NEW BOARD SEAT THE COMPANY DIDN'T SAY WHEN THE DEPARTING DIRECTORS WOULD BE REPLACED LAST WEEK FIRST CASH CLOSED AN OFFERING TO SELL 590000 COMMON SHARES HELD BY MESSRS HUDIBERG PAYNE AND ABBOTT FOR 4 A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY FIRST CASH CLOSED AT 375 UP 25 CENTS 9312020111 931202 PLAYTEX'S IPO WILL VALUE THE HOLDINGS OF CURRENT OWNERS AT OVER 100 MILLION BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE INITIAL PUBLIC OFFERING OF PLAYTEX FP GROUP INC INTENDED TO HELP REFINANCE THE DEBT OF THE STRUGGLING PERSONALCARE PRODUCTS MAKER WILL VALUE THE HOLDINGS OF CURRENT OWNERS AT MORE THAN 100 MILLION THE COMPANY'S PLAN TO SELL 20 MILLION SHARES AT AN ESTIMATED 13 A SHARE IS PART OF A 11 BILLION RECAPITALIZATION AIMED AT SHARPLY CUTTING INTEREST EXPENSE BUT LONGTERM DEBT WILL STILL TOTAL NEARLY 1 BILLION AND THE COMPANY STILL NEEDS TO REJUVENATE DEMAND FOR THE TAMPONS PLASTIC GLOVES AND OTHER ITEMS MARKETED UNDER ITS NAME WHILE THE COMPANY'S OWNERS AREN'T SELLING SHARES THE OFFERING WOULD VALUE THEIR COMMON STOCK HOLDINGS AT 104 MILLION AND THEY WILL BE PAID 265 MILLION IN THE REFINANCING THROUGH THE REDEMPTION OF A PREFERRED STOCK ISSUE THEY HOLD THE INVESTORS INCLUDE BOSTON INVESTOR THOMAS H LEE PLAYTEX'S LARGEST SHAREHOLDER WHOSE INVESTING SUCCESSES INCLUDE THE 1992 PUBLIC OFFERING OF SNAPPLE BEVERAGE INC HE AND FUNDS HE CONTROLS SOLD 120 MILLION OF SNAPPLE IN A RECENT SECONDARY OFFERING PLAYTEX'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOEL E SMILOW ALREADY HAS MADE 1865 MILLION FROM FOUR SUCCESSIVE LEVERAGED BUYOUTS OF VARIOUS PLAYTEX BUSINESSES PLAYTEX WHICH WILL BECOME PLAYTEX PRODUCTS INC AFTER ITS OFFERING WAS LAST PUBLIC IN 1986 WHEN IT WAS PART OF FORMER FOOD AND CONSUMERSPRODUCT CONGLOMERATE BEATRICE CORP WHILE THE REFINANCING PLAN WOULD ONLY CUT LONGTERM DEBT TO 9572 MILLION FROM 9859 MILLION IT WOULD CUT ANNUAL INTEREST EXPENSE BY ABOUT 40 AND ELIMINATE 11 MILLION A YEAR IN PREFERRED DIVIDENDS IN 1992 THE COMPANY HAD A LOSS FROM CONTINUING OPERATIONS OF 264 MILLION OR 244 A SHARE ON SALES OF 385 MILLION WHEN INTEREST EXPENSE WAS A HUGE 114 MILLION BUT THE IPO FILING WITH THE SECURITIES AND EXCHANGE COMMISSION INDICATES THAT IF THE REFINANCING HAD TAKEN PLACE LAST YEAR THE COMPANY WOULD HAVE EARNED 127 MILLION OR 41 CENTS A SHARE AND REDUCED INTEREST EXPENSE TO 675 MILLION THE STAMFORD CONN COMPANY SAYS IT PLANS TO STRENGTHEN EXISTING PRODUCTS INTRODUCE NEW ONES EXPAND OVERSEAS AND PURSUE ACQUISITIONS AND IT EXPECTS A BOOST FROM ITS NEW AND FASTGROWING BANANA BOAT SUNCARE PRODUCTS WHICH COULD BECOME ITS THIRDBIGGEST PRODUCT LINE WITH 309 MILLION SHARES OUTSTANDING AFTER THE IPO AN OFFERING AT 13 A SHARE WOULD VALUE THE COMPANY'S COMMON STOCK AT 401 MILLION OF WHICH MESSRS LEE AND SMILOW WILL OWN 122 AND 102 RESPECTIVELY AND OFFICERS AND DIRECTORS ALTOGETHER 26 MR LEE IS A DIRECTOR MERRILL LYNCH & CO IS THE LEAD UNDERWRITER AS PART OF THE REFINANCING MESSRS SMILOW AND LEE AND SIX OTHER OFFICERS AND DIRECTORS WILL RECEIVE 265 MILLION FROM THE REDEMPTION OF PREFERRED STOCK THEY HOLD THEY AREN'T SELLING ANY COMMON SHARES PLAYTEX WILL ISSUE 360 MILLION OF NEW DEBT BORROW 521 MILLION IN NEW BANK LOANS AND BEFORE EXPENSES RAISE 260 MILLION FROM THE STOCK OFFERING PLAYTEX DEVISED THE REFINANCING PLAN AFTER SARA LEE CORP THE CHICAGO FOOD AND APPAREL COMPANY ENDED AN AGREEMENT THAT COULD HAVE LED TO SARA LEE BUYING MOST OF PLAYTEX SARA LEE IN EARLY 1991 BOUGHT THE PLAYTEX BRASSIERE AND APPAREL BUSINESS AND LATER PAID 625 MILLION FOR A 25 INTEREST IN PLAYTEX'S TAMPON AND PERSONAL PRODUCTS BUSINESS AND AN OPTION TO BUY THE REMAINING SHARES WITH ITS ACQUISITION THIS SUMMER OF SMITHKLINE BEECHAM PLC'S TOILETRY LINE HOWEVER SARA LEE DECIDED IT WOULD BE TOO BIG AN UNDERTAKING TO ENTER ANOTHER MARKET A SPOKESWOMAN FOR SARA LEE SAID PLAYTEX WHICH LOST GROUND IN THE TAMPON MARKET IN THE LATE 1980S IS TRYING TO BUILD MARKET SHARE IN THE MARKET WHICH ALSO INCLUDES TAMBRANDS INC KIMBERLYCLARK CORP JOHNSON & JOHNSON AND A TINY BUT GROWING PRIVATELABEL BUSINESS ITS BRAND NAME REMAINS A MAIN ASSET SAID JOHN LISTER CHIEF EXECUTIVE OF A NEW YORK BRANDCONSULTING COMPANY PLAYTEX HOLDS A 22 INTEREST IN SUN PHARMACEUTICALS LTD THE POMPANO BEACH FLA COMPANY THAT MAKES THE BANANA BOAT SUN CARE LINE MR LEE IS ALSO A MAJOR INVESTOR IN SUN PHARMACEUTICALS PLAYTEX BEGAN DISTRIBUTING THE PRODUCT IN NOVEMBER JOEL E SMILOW CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PLAYTEX FP GROUP INC DIRECTOR THOMAS H LEE SIX OTHER OFFICERS AND DIRECTORS A CHARITABLE TRUST IN MR SMILOW'S NAME AND TRUSTS ON BEHALF OF THE CHILDREN OF VICE CHAIRMAN HERCULES P SOTOS WILL BE PAID ABOUT 58 MILLION FROM THE REDEMPTION OF PREFERRED STOCK THEY HOLD AS PART OF PLAYTEX'S PLANNED RECAPITALIZATION THE GROUP HOLDS 219 OF A TOTAL 265 MILLION IN SERIES B PREFERRED STOCK THAT WILL BE REDEEMED AN ARTICLE THURSDAY INCORRECTLY STATED THAT THE MANAGEMENT GROUP WOULD RECEIVE 265 MILLION FROM THE REDEMPTION OF PREFERRED STOCK 9312020110 931202 SOME NOMURA STRATEGISTS BECOME BEARS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NOMURA SECURITIES CO ONCE THE STAUNCHEST BOOSTER OF THE TOKYO STOCK MARKET HAS MORE NOTICEABLY BEARISH STRATEGISTS THESE DAYS NICHOLAS KNIGHT NOMURA'S LONDONBASED ANALYST IS PREDICTING THAT THE NIKKEI STOCK INDEX COULD TUMBLE AS LOW AS 12000 FROM WEDNESDAY'S 1712531 THE JAPANESE GOVERNMENT HAS CRITICIZED THE GIANT SECURITIES FIRM FOR PUBLICIZING MR KNIGHT'S FORECAST DESPITE A POWERFUL 4 RALLY WEDNESDAY THE NIKKEI IS STILL DOWN 20 FROM MIDSEPTEMBER LEVELS JAPAN'S POWERFUL MINISTRY OF FINANCE APPEARS TO BE OBSESSED WITH KEEPING THE TOKYO MARKET'S IMAGE POSITIVE SEVERAL OTHER SECURITIES COMPANIES SAY THE MINISTRY HAS ASKED THEM FOR A DAILY ACCOUNTING OF EACH FIRM'S BIGGEST SELLERS A MOVE THAT APPEARS TO BE A LOWCOST WAY TO EMBARRASS BROKERAGE FIRMS INTO BUYING THE MARKET IT'S BELOW THE BELT COMPLAINS AN OFFICIAL AT A LARGE JAPANESE BROKERAGE FIRM THE MINISTRY'S OWN UNWILLINGNESS TO PUT SUCCESSFUL POLICIES IN PLACE IS BEHIND THIS CRASH MINISTRY OFFICIALS DENY THERE WAS ANY CRITICISM OF NOMURA THEY ADMIT TO ASKING FOR SUCH TRADING DATA BUT CLAIM IT IS FOR REGULATORY PURPOSES NOT TO INTIMIDATE IN ANY CASE THE MINISTRY'S INQUIRIES HAVEN'T CHASTENED MR KNIGHT IN THE MIDST OF WEDNESDAY'S RALLY HE SENT CLIENTS A FAX WARNING THAT WE STILL FIND BETTER VALUE EITHER IN THE JAPANESE BOND MARKET OR IN OTHER EQUITY MARKETS WORLDWIDE HE ADDED THAT INVESTORS SHOULD BE SKEPTICAL ABOUT THE POSITIVE IMPACT OF GOVERNMENT ACTION ON STOCK PRICES OTHER NOMURA OFFICIALS ACKNOWLEDGE THAT TIMES HAVE CHANGED THREE YEARS OF A DETERIORATING MARKET HAVE TAUGHT US A LOT SAYS KENICHI TAKESHITA A NOMURA DIRECTOR RATHER THAN PLAYING THE ROLE OF MARKET BOOSTER HE SAYS IT'S MORE IMPORTANT TO HELP CLIENTS MAKE MONEY IN ANY ENVIRONMENT INDEED NOMURA SALESMEN WHO ONCE OFFERED ONLY ROSY SCENARIOS NOW ARE SUGGESTING THAT INVESTORS BUY SUCH THINGS AS FUTURES AND OPTIONS THAT OFFER WAYS TO PROFIT WHILE THE MARKET SINKS MR KNIGHT MADE HIS BEARISH CALL BASED ON UNCERTAINTIES WITH REGARD TO THE JAPANESE ECONOMY AND CORPORATE EARNINGS AND ADVISED CLIENTS TO CUT YOUR LOSSES ACCORDING TO HIS MIDNOVEMBER REPORT HIS COMMENTS CONTRIBUTED TO TOKYO'S SOUR MOOD SETTING THE STAGE FOR MONDAY'S PLUNGE IN STOCK PRICES MR KNIGHT COULDN'T BE REACHED FOR COMMENT MINISTRY BUREAUCRATS WEREN'T TOO HAPPY WITH THE PREDICTION PERHAPS BECAUSE WHAT MR KNIGHT SAYS WAS RIGHT SAYS MR TAKESHITA WHO AGREES WITH THE FORECAST BUT SAYS OTHERS IN THE FIRM DON'T THERE ARE A LOT OF ANALYSTS OUT THERE WITH SIMILAR FORECASTS BUT THE MINISTRY WAS A LITTLE MORE MAD BECAUSE IT WAS NOMURA NOMURA STILL HAS A REPUTATION AMONG MANY IN JAPAN INCLUDING APPARENTLY THE FINANCE MINISTRY FOR CONTROLLING JAPAN'S STOCK MARKET A NEARLY FIVEFOLD INCREASE IN THE VALUE OF THE TOKYO MARKET SINCE 1980 PROBABLY PUTS THAT BEYOND ANY FIRM'S ABILITY BUT THERE'S AN IDEA THAT NOMURA'S 2700STRONG RETAIL SALES ARMY CAN MAKE THE NIKKEI RISE NO MATTER WHAT PEOPLE OUTSIDE NOMURA THINK WE SHOULD BE MORE AGGRESSIVE IN OUR MARKETING AND TURN THIS MARKET AROUND MR TAKESHITA SAYS THEY'RE IRRESPONSIBLE THEY DON'T UNDERSTAND MARKET MECHANISMS THE MINISTRY CAN CRITICIZE BUT OTHER OUTSIDERS GIVE NOMURA CREDIT FOR ITS WILLINGNESS TO CALL IT AS IT SEES IT PEOPLE ARE GETTING A LOT MORE RESPECT FOR NOMURA SAYS BRIAN HOPKINSON WHO MANAGES JAPANESE STOCKS FOR FIDUCIARY TRUST CO IN NEW YORK HE ADDS THAT BECAUSE OF THE GROWTH IN THE SIZE OF THE TOKYO MARKET I DON'T KNOW IF THEY'RE AS IMPORTANT AS THEY USED TO BE FOR SETTING TRENDS IN THE CURRENT BEAR MARKET NOMURA OFFERS INSTITUTIONAL CLIENTS TOOLS LIKE FUTURES AND OPTIONS THAT ARE DESIGNED TO PROFIT FROM A MARKET DOWNTURN RETAIL CLIENTS CAN'T USE THOSE BUT NOMURA HAS ADVISED THE SMALL CLIENTS TO MOVE INTO OTHER ASIAN MARKETS AND HAS SOLD OVER 400 BILLION YEN 367 BILLION OF ASIAN STOCKS IN THE PAST SIX MONTHS IT HASN'T BEEN AN EASY TRANSITION FOR NOMURA MR TAKESHITA SAYS IN THE PAST OUR SALESPEOPLE ALWAYS SAID BUY BUY' OR WERE SILENT THE EXECUTIVE SAYS EVEN IN THIS BEAR MARKET I DON'T KNOW HOW MANY TIMES OUR EQUITY PEOPLE CALLED IT THE BOTTOM AND IT JUST WENT LOWER EVEN INSIDE THE NOMURA EMPIRE THERE ARE STILL DOUBTS ABOUT UNLEASHING AN ARMY OF BEARSUITED SALESMEN MAYBE WE'RE OVERDOING THIS A LITTLE BIT WORRIES NOBUMITSU KAGAMI A FORMER NOMURA DIRECTOR AND NOW EXECUTIVE VICE PRESIDENT OF NOMURA INVESTMENT MANAGEMENT CO THE NOMURA MUTUAL FUND MAYBE WE SHOULD DO SOMETHING TO TRY AND RESTORE INVESTOR CONFIDENCE 9312020109 931202 QUAKER STATE CHAIRMAN SAYS CRUDEPRICE DROP MAY AID BALANCE SHEET OIL CITY PA QUAKER STATE CORP CHAIRMAN HERBERT M BAUM TOLD ANALYSTS THAT THE RECENT DROP IN CRUDEOIL PRICES MIGHT HAVE A MODESTLY BENEFICIAL IMPACT ON ITS FINANCIAL PERFORMANCE IN ADDITION HE SAID QUAKER STATE'S MOTOROIL SALES HAVE INCREASED ABOUT 15 IN THE PAST THREE MONTHS REVERSING A TREND OF DECLINING SALES IN THE FOURTH QUARTER OF 1992 THE COMPANY REPORTED REVENUE OF 174 MILLION MOTOROIL SALES ACCOUNTED FOR ABOUT HALF IT HAD A NET LOSS OF 358 MILLION INCLUDING A 374 MILLION CHARGE FOR DISCONTINUED OPERATIONS AND PROFIT FROM CONTINUING OPERATIONS OF 17 MILLION IF CRUDEOIL PRICES REMAIN LOW THAT SHOULD LEAD TO LOWER COSTS FOR THE LUBRICATING STOCKS WE PURCHASE MR BAUM SAID MEANWHILE MOTOROIL PRICES DO NOT NORMALLY FLUCTUATE WITH PRICE CHANGES IN CRUDE OIL SO THE OVERALL EFFECT OF LOWER CRUDE PRICES ON QUAKER STATE APPEARS LIKELY TO BE FAVORABLE QUAKER STATE'S REFINERY AT NEWELL W VA PRODUCES ABOUT HALF THE LUBE STOCKS THE COMPANY USES IN ITS MOTOR OIL THE OTHER HALF IS PURCHASED AT MARKET PRICES MR BAUM CREDITED A 420 CONSUMER REBATE FOR MUCH OF THE SALES UPTURN BUT TOLD THE ANALYSTS THIS REBATE IS A TACTIC NOT A STRATEGY WE MAY DO SOMETHING LIKE IT AGAIN BUT WE WILL DO OTHER THINGS TO KEEP THE MARKET GUESSING AND OUR CUSTOMERS EXCITED 9312020108 931202 WHO'S NEWS KIMBERLYCLARK NAMES VAN STEENBERG TO HEAD EUROPEAN OPERATIONS DALLAS KIMBERLYCLARK CORP TAPPED THE HEAD OF ITS AUSTRALIAN DIVISION JOHN VAN STEENBERG TO LEAD ITS OPERATIONS IN EUROPE WHERE IT IS AGGRESSIVELY EXPANDING DISTRIBUTION OF ITS DIAPERS AND TRAINING PANTS THE EUROPEAN UNIT PRODUCES 1 BILLION IN ANNUAL SALES NOW ABOUT ONESEVENTH OF THE DALLAS CONSUMERPRODUCTS MAKER'S ANNUAL REVENUE MR VAN STEENBERG 46 YEARS OLD SUCCEEDS NICHOLAS P SMITH 53 WHO WILL BECOME AN EXECUTIVE CONSULTANT REPORTING TO CHAIRMAN WAYNE R SANDERS UNTIL MR SMITH RETIRES AT THE END OF 1994 AS OF JAN 1 MR SMITH WILL BE RESPONSIBLE FOR OTHER UNDISCLOSED GLOBAL EXPANSION PROJECTS THE COMPANY SAID MR SMITH WHO HAS HEADED THE COMPANY'S EUROPEAN DIVISION SINCE 1990 PLANNED TO RETIRE FOR PERSONAL REASONS HE HAS WORKED FOR KIMBERLY FOR 24 YEARS AND HAD PREVIOUSLY BEEN MANAGING DIRECTOR OF KIMBERLY'S AUSTRALIAN UNIT FROM 1988 TO 1990 MR VAN STEENBERG ALSO SUCCEEDED MR SMITH IN THE AUSTRALIAN POST 9312020107 931202 TECHNOLOGY & HEALTH CURAFLEX HEALTHINFUSION AND MEDISYS TO MERGE IN 217 MILLION STOCK DEAL BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL CURAFLEX HEALTH SERVICES INC HEALTHINFUSION INC AND MEDISYS INC AGREED TO MERGE IN A STOCK TRANSACTION THAT WOULD CREATE A LARGE HOMEINFUSION THERAPY COMPANY WITH A MARKET VALUE OF ABOUT 217 MILLION THE MOVE COMES AT A TIME OF SEVERE PRICING PRESSURES AND COMPETITION IN THAT BUSINESS WHICH DELIVERS CHEMOTHERAPY INTRAVENOUS FEEDING AND OTHER SERVICES IN PEOPLE'S HOMES THE COMPANIES HOPE TO CUT THEIR COSTS AND PRICES TO ATTRACT MORE MANAGEDCARE AND OTHER CUSTOMERS HEALTH CARE IS GOING TO CHANGE DRAMATICALLY NO MATTER WHAT CONGRESS DOES ABOUT PRESIDENT CLINTON'S REFORM PLAN SAID CHARLES A LAVERTY CURAFLEX CHAIRMAN AND CHIEF EXECUTIVE OFFICER THERE WILL BE FEWER PAYERS SUCH AS INSURANCE COMPANIES AND MANAGEDCARE NETWORKS SEEKING THE MOST EFFICIENT PROVIDERS HE SAID MR LAVERTY PROSPECTIVE CHAIRMAN AND CHIEF EXECUTIVE OF THE SUCCESSOR COMPANY VALUED THE TRANSACTION AT ABOUT 266 MILLION BASED ON THE COMPANIES' TUESDAY CLOSING STOCK PRICES PLUS 49 MILLION OF DEBT ON A PRO FORMA BASIS FOR THE 12 MONTHS ENDED SEPT 30 THE COMPANY WOULD HAVE HAD NET INCOME OF 104 MILLION OR 80 CENTS A SHARE ON REVENUE OF 184 MILLION IN NASDAQ STOCK MARKET TRADING YESTERDAY CURAFLEX SHARES CLOSED UNCHANGED AT 550 HEALTHINFUSION SHARES JUMPED 1125 OR 18 TO CLOSE AT 7375 AND MEDISYS SHARES SLID 1125 OR 214 TO 4125 THE MERGER WAS ANNOUNCED BEFORE MARKETS OPENED UNDER THE AGREEMENT ALL COMMON SHARES OF THE COMPANIES WOULD BE EXCHANGED FOR STOCK IN THE NEWLY FORMED COMPANY FOR EACH CURAFLEX SHARE HOLDERS WOULD RECEIVE 0333 SHARE IN THE NEW COMPANY FOR EACH HEALTHINFUSION SHARE HOLDERS WOULD RECEIVE 0447 NEW SHARE AND FOR EACH MEDISYS SHARE HOLDERS WOULD RECEIVE 0243 NEW SHARE LOUIS C WEBB AN ANALYST AT ROBERT W BAIRD & CO IN MILWAUKEE CALLED THE DEAL A LOGICAL CONSEQUENCE OF THE TORTUOUS MARKET ENVIRONMENT FOR HOMEINFUSION THERAPY WHICH IS OVERRUN WITH SMALL PHARMACIES AND OTHER NEW ENTRANTS THE CONSOLIDATION WILL CUT OVERHEAD BUT WON'T TRANSLATE INTO RAPID GROWTH PREDICTED TODD RICHTER AT DEAN WITTER DISCOVER INC CURAFLEX'S MR LAVERTY SAID THE NEW COMPANY WOULD BE THE LARGEST HOMEINFUSION THERAPY PROVIDER IN MIAMI BOSTON MINNEAPOLIS CHICAGO KANSAS CITY ST LOUIS AND IN THE AREAS OF SOUTHERN CALIFORNIA AND ALONG THE CORRIDOR BETWEEN WASHINGTON AND NEW YORK AMONG THE NEW COMPANY'S MAJOR COMPETITORS WOULD BE CAREMARK INTERNATIONAL INC AND MEDICAL CARE AMERICA INC'S CRITICAL CARE AMERICA INC UNIT SAVINGS WOULD BE ACHIEVED BY CONSOLIDATING CORPORATE OFFICES AND OPERATIONS IN 24 CITIES WHERE THE THREE COMPANIES HAVE OVERLAPPING OPERATIONS MR LAVERTY SAID THERE WILL HAVE TO BE JOB REDUCTIONS TO TRIM THE NEW COMPANY'S 1600PERSON WORK FORCE BUT THAT THEY MIGHT BE CHECKED BY SOME PRETTY EXPLOSIVE GROWTH A NAME AND HEADQUARTERS LOCATION FOR THE NEW COMPANY HAVEN'T BEEN DECIDED YET CURAFLEX IS BASED IN ONTARIO CALIF HEALTHINFUSION IN MIAMI AND MEDISYS IN MINNEAPOLIS MILES E GILMAN PRESIDENT AND CHIEF EXECUTIVE OF HEALTHINFUSION IS EXPECTED TO BECOME VICE CHAIRMAN AND PRESIDENT OF THE NEW COMPANY MEDISYS CHIEF EXECUTIVE WILLIAM J BRUMMOND IS EXPECTED TO BECOME EXECUTIVE VICE PRESIDENT MR LAVERTY SAID HE EXPECTS THE MERGER TO BE COMPLETED IN MIDMARCH 9312020106 931202 SOUTHERN UNION CO AUSTIN TEXAS SOUTHERN UNION CO SAID IT BEGAN A RIGHTS OFFERING COVERING THE SALE OF 50 MILLION IN COMMON STOCK THE UTILITY SAID STOCK OF RECORD AS OF TUESDAY WILL RECEIVE 038 TRANSFERABLE SUBSCRIPTION RIGHTS FOR EACH SHARE OWNED EACH RIGHT ENTITLES THE OWNER TO BUY ONE COMMON SHARE OF SOUTHERN UNION FOR 25 YESTERDAY SOUTHERN UNION'S COMMON SHARES FELL 1 OR 36 TO CLOSE AT 2650 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING A TOTAL OF TWO MILLION COMMON SHARES WILL BE ISSUED IN THE RIGHTS OFFERING SOUTHERN UNION SAID A COMPANY OFFICIAL SAID PROCEEDS FROM THE OFFERING WILL BE USED IN SOUTHERN UNION'S ACQUISITION PROGRAM AND AS PART OF ITS OVERALL FINANCING PLAN THE OFFERING IS SET TO EXPIRE ON DEC 23 9312020105 931202 TECHNOLOGY COMPAQ BEGINS PROJECT TO ALLOW CUSTOMERS TO TRY OUT SOFTWARE THE PROJECT DEVELOPED IN CONJUNCTION WITH INFONOW CORP BOULDER COLO GIVES USERS OF COMPAQ'S PRESARIO MULTIMEDIA COMPUTERS ACCESS TO NEARLY 100 SOFTWARE TITLES LOADED INTO A COMPACT DISK INCLUDED IN THE COMPUTER CUSTOMERS CAN TESTDRIVE THE SOFTWARE ON THEIR PCS FOR FREE BY CALLING A TOLLFREE NUMBER AND GETTING A CODE THAT ACTIVATES THE PROGRAM ONCE THE SOFTWARE IS PURCHASED IT IS UNLOCKED AUTOMATICALLY AND INSTALLED ON THE COMPUTER'S HARD DRIVE INFONOW'S ELECTRONIC CATALOG CALLED QUICKCHOICE ALREADY IS INCLUDED IN COMPUTERS MADE BY INTERNATIONAL BUSINESS MACHINES CORP GATEWAY 2000 INC AND VTECH COMPUTERS INC 9312020104 931202 BUSINESS BRIEFS BANTA CORP AGREED TO ACQUIRE THE ASSETS OF DANBURY PRINTING & LITHO INC OF DANBURY CONN TERMS WEREN'T DISCLOSED OMNICARE INC ACQUIRED THE INSTITUTIONAL PHARMACY BUSINESS OF CLOSELY HELD KANSAS CITY NURSING SERVICES INC FOR AN UNDISCLOSED AMOUNT OF CASH IT WILL BE MERGED WITH THE OPERATIONS OF FREED'S PHARMACY INC OMNICARE'S INSTITUTIONAL PHARMACY SERVICES PROVIDER IN OVERLAND PARK KAN HORIZON HEALTHCARE CORP'S SHAREHOLDERS APPROVED THE COMPANY'S PLANNED ACQUISITION OF GREENERY REHABILITATION GROUP INC FOR 346 MILLION IN STOCK PLUS THE ASSUMPTION OF ABOUT 547 MILLION IN DEBT BENSON EYECARE CORP RYE NY COMPLETED THE ACQUISITION OF INTERNATIONAL EYEWEAR & ACCESSORIES INC FOR 10 MILLION OF BENSON COMMON STOCK FIRST BANK SYSTEM INC AGREED TO ACQUIRE FIRST FINANCIAL INVESTORS INC THE HOLDING COMPANY FOR ST LOUIS BANK FOR SAVINGS IN DULUTH MINN TERMS WEREN'T DISCLOSED FIRST FINANCIAL INVESTORS THE PARENT OF THE COMPANY TO BE ACQUIRED IS OWNED BY FIRST FINANCIAL PARTNERS FUND 1 NEW YORK LA QUINTA INNS INC AND ITS LQI ACQUISITION CORP SUBSIDIARY COMPLETED THEIR OFFER FOR ALL LIMITED PARTNERSHIP INTERESTS OUTSTANDING IN LA QUINTA MOTOR INNS LP FOR 13 A UNIT IN CASH 9312020103 931202 POLITICS & POLICY STANDOFF ENDS AS AIRLINES AGREE TO PAY HIGHER LANDING FEES TO LOS ANGELES BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MAJOR AIRLINES AGREED UNDER PROTEST TO PAY HIGHER LANDING FEES TO THE CITY OF LOS ANGELES ENDING A STANDOFF THAT THREATENED TO CLOSE THE NATION'S THIRDBUSIEST AIRPORT THE ISSUE ULTIMATELY MUST BE RESOLVED IN COURT BUT AIRLINES HAD BALKED AT PAYING THE INCREASED FEES PENDING THE OUTCOME OF COURT CHALLENGES THEY HAVE FILED SAYING THEY WANTED THE MONEY KEPT IN ESCROW THE CITY REJECTED THAT IDEA SAYING IT NEEDED THE MONEY IMMEDIATELY AS A PART OF THE AGREEMENT LOS ANGELES MAY NOT RAISE LANDING FEES AGAIN UNTIL JULY 1 1994 IN ADDITION DAVID HINSON HEAD OF THE FEDERAL AVIATION ADMINISTRATION SAID THE AGREEMENT INCLUDES A LEGAL MECHANISM TO ENSURE THAT AIRLINES WILL BE ABLE TO COLLECT ANY REFUNDS ORDERED AS A RESULT OF COURT ACTION THE AGREEMENT CAME AFTER TWO DAYS OF NEGOTIATIONS AT THE TRANSPORTATION DEPARTMENT HERE THE GOVERNMENT INTERVENED WHEN THE CITY THREATENED TO CLOSE ITS RUNWAYS ON SATURDAY TO ANY CARRIERS THAT REFUSED TO PAY THE NEW FEES THE NEGOTIATIONS WERE MEDIATED BY MR HINSON AND STEPHEN KAPLAN GENERAL COUNSEL FOR THE TRANSPORTATION DEPARTMENT IN JULY THE CITY MORE THAN TRIPLED THE FEE FOR LANDING AT LOS ANGELES INTERNATIONAL AIRPORT TO 156 FROM 51 CENTS PER 1000 POUNDS THE FEDERAL AVIATION ADMINISTRATION ALLOWS CITIES TO CHARGE REASONABLE LANDING FEES TO COVER THE COSTS OF RUNNING THEIR AIRPORTS THE AIRLINES ARGUED THAT THE LOS ANGELES INCREASE WASN'T NEEDED AND WOULD BE USED FOR OTHER PURPOSES TRANSPORTATION SECRETARY FEDERICO PENA CALLED THE AGREEMENT A TRIPLE WIN FOR THE TRAVELING PUBLIC AIRPORT AUTHORITIES AND THE AIRLINE INDUSTRY LOS ANGELES MAYOR RICHARD RIORDAN PRAISED THE AGREEMENT IT IS A GOOD DEAL FOR THE CITIZENS OF LA AND IT IS A FAIR DEAL FOR THE AIRLINES HE SAID TED STEIN THE PRESIDENT OF THE LOS ANGELES BOARD OF AIRPORT COMMISSIONERS SAID THERE WERE NO WINNERS OR LOSERS BUT HE ADDED THAT THE CITY OF LOS ANGELES IS PLEASED WITH THIS AGREEMENT JAMES LANDRY PRESIDENT OF THE AIR TRANSPORT ASSOCIATION AN INDUSTRY GROUP SAID THAT THE TWO SIDES HAD REACHED AN AMICABLE RESOLUTION TO THE CRISIS IN AN ATTEMPT TO PREVENT FEE CONFLICTS IN OTHER CITIES MR PENA SAID HE WILL ISSUE A STATEMENT NEXT WEEK REDEFINING HOW THE DEPARTMENT WILL HANDLE SUCH DISPUTES HE WILL ENCOURAGE TIMELY RESOLUTION AT THE LOCAL LEVEL BUT SAID THE SERVICES OF THE DEPARTMENT WILL BE AVAILABLE MR PENA SAID THE DEPARTMENT WOULD BE OBSERVING FEE ACTIVITIES IN OTHER CITIES AND WOULD NOT BE A BYSTANDER WHERE INTERVENTION IS NEEDED DESPITE THE AIRLINE INDUSTRY'S EVIDENT DEFEAT IN ITS BATTLE WITH LOS ANGELES AIRLINES HOPE MR PENA WILL TAKE A STRONG STAND AGAINST EXCESSIVE FEE INCREASES FOR EXAMPLE MR LANDRY SAID HONOLULU IS PROPOSING TO INCREASE ITS LANDING FEE SIXFOLD TO MORE THAN 8 PER 1000 POUNDS THE EFFORTS OF THE AIRLINE INDUSTRY TO TAKE A STAND ON THIS ISSUE NOW DEPEND ON THE ANNOUNCED INTENTION OF THE DEPARTMENT OF TRANSPORTATION TO BE MORE AGGRESSIVE IN DEFENDING THE PUBLIC INTEREST AGAINST THE MONOPOLY POWER OF THE AIRPORTS AS REFLECTED IN UNREASONABLE FEE DEMANDS AND THREATS TO LOCK OUT AIRLINES HE ADDED IT IS IMPERATIVE THAT HIS POLICY STATEMENT BE DEFINITIVE OR ELSE THE PUBLIC WILL EXPERIENCE SUCH REPEATED THREATS BY OTHER AIRPORTS MR STEIN ESTIMATES THE CITY WILL COLLECT BETWEEN 16 MILLION AND 18 MILLION WHEN THE AIRLINES PAY FEES RETROACTIVE TO JULY PAYMENT STILL MUST BE MADE BY SATURDAY 9312020102 931202 MARKETING & MEDIA CABLE FIRMS TO FORM VENTURE TO TAKE ON PHONE COMPANIES BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL ANAHEIM CALIF SOME OF THE NATION'S LARGEST CABLE COMPANIES THAT ARE INVESTORS IN TELEPORT COMMUNICATIONS GROUP AGREED TO FORM A JOINT VENTURE THAT WOULD ORGANIZE LOCAL CABLE OPERATORS IN LARGE MARKETS TO COMPETE WITH REGIONAL TELEPHONE COMPANIES IN A RELATED ANNOUNCEMENT TIME WARNER COMMUNICATIONS AGREED IN PRINCIPLE TO BUY A 167 STAKE IN TELEPORT WHICH COMPETES WITH LOCAL TELEPHONE COMPANIES BY CARRYING LOCAL PHONE TRAFFIC FOR LARGE BUSINESSES AND LONGDISTANCE COMPANIES OVER FIBEROPTIC LINES THE SALE WOULD MAKE THE TIME WARNER INC UNIT THE FIFTH OWNER OF THE COMPANY AND ONE OF THE FIVE INVOLVED IN THE JOINT VENTURE OTHERS ARE TELECOMMUNICATIONS INC COMCAST CORP COX ENTERPRISES INC AND CONTINENTAL CABLEVISION INC TERMS OF THE SALE WEREN'T DISCLOSED BUT ONE KNOWLEDGEABLE SOURCE VALUED THE TIME WARNER INVESTMENT AT MORE THAN 50 MILLION THE COMPANIES STRESSED THAT THE JOINT VENTURE AGREEMENT IS IN PRINCIPLE ONLY AND THAT MANY PROVISIONS REMAIN TO BE WORKED OUT BUT THE AIM IS CLEAR TO CREATE A UNIFIED THREAT TO THE REGIONAL TELEPHONE COMPANIES IN THE COMPETITIVE ACCESS BUSINESS AND A HOST OF OTHER NEW SERVICES AS CABLE OPERATORS UPGRADE THEIR NETWORKS WITH HIGHCAPACITY FIBER OPTICS THEY CAN MORE READILY OFFER TELEPHONY SERVICES THE JOINT VENTURE WOULD ACT AS AN UMBRELLA ORGANIZATION FOR CABLE OPERATORS WHO WANT TO OFFER COMPETITIVE TELEPHONE ACCESS THROUGH TELEPORT IN THE FUTURE THE VENTURE WOULD HELP DEVELOP NEW LINES SUCH AS VIDEO TELEPHONY ENERGY MANAGEMENT COMMUNICATIONS AND WIRELESS POCKET PHONES KNOWN AS PERSONAL COMMUNICATIONS SERVICES TODAY CABLE OPERATORS SERVE A SINGLE LARGE MARKET IN A JIGSAW PUZZLE PATTERN FOR EXAMPLE THE CHICAGO MARKET IS SERVED BY ONLY ONE REGIONAL TELEPHONE COMPANY AMERITECH CORP AND 12 DIFFERENT CABLE OPERATORS YOU DON'T WANT 12 DIFFERENT COMPANIES TRYING TO POSITION A BUSINESS AGAINST ONE SAID ROBERT THOMSON A SENIOR VICE PRESIDENT OF TCI THIS IS CLEARLY A STEP THAT WILL ENHANCE COMPETITION UNDER THE PLAN FOR THE JOINT VENTURE LOCAL CABLE OPERATORS COULD ACCESS A RANGE OF SERVICES MARKETING AND ADVERTISING RESEARCH AND DEVELOPMENT REGULATORY ADVICE AND BRANDING OF NEW OFFERINGS THE JOINT VENTURE WILL ALSO SEEK INVESTMENTS AND PARTICIPATION FROM OTHER CABLE OPERATORS IN SETTING UP THESE NEW SERVICES THE ANNOUNCEMENT MADE HERE AT AN ANNUAL CABLE TRADE SHOW MARKS ONE OF THE FIRST UNIFIED STANCES THE CABLE INDUSTRY HAS MADE AGAINST LOCAL TELEPHONE COMPANIES EVEN AS IT BEFRIENDS THEM IN OTHER INVESTMENTS AND MERGERS BELL ATLANTIC CORP FOR EXAMPLE IS EXPECTED TO CLOSE WITHIN A YEAR ON ITS MERGER PROPOSAL WITH TCI BUT A TCI SPOKESMAN SAID NO TELEPHONE COMPANY WOULD BE ALLOWED TO HAVE AN INFLUENCE OVER THE JOINT VENTURE'S ACTIVITIES IN THAT TELEHONE COMPANY'S SERVICE AREAS UPON CLOSING OF THE TELEPORT SALE TIME WARNER'S PURCHASE WILL SLIGHTLY DILUTE THE STAKES OF THE OTHER FOUR OWNERS TCI AND COX WILL EACH OWN 25 AND TIME WARNER CONTINENTAL AND COMCAST WILL EACH OWN 167 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TIME WARNER SHARES CLOSED AT 4425 UP 125 CENTS IN NASDAQ STOCK EXCHANGE TRADING TELECOMMUNICATIONS SHARES LOST 25 CENTS TO 29875 AND COMCAST GAINED 625 CENTS TO 37375 9312020101 931202 PEPPERAND SALT HOW ABOUT POLITICIANS AND LOBBYISTS AND I WILL ALERT YOU CAN'T POSSIBLY HURT YOU COMPLAINT DEPARTMENT AFFRONT DESK 9312020100 931202 WHO'S NEWS RADIATION CARE SAYS ITS PRESIDENT RESIGNED FOR PERSONAL REASONS ATLANTA RADIATION CARE INC SAID ITS PRESIDENT AND CHIEF EXECUTIVE ROBERT L GOODMAN RESIGNED FOR PERSONAL REASONS DR GOODMAN 52 YEARS OLD JOINED THE PROVIDER OF MEDICAL SERVICES IN OCTOBER 1991 AS A DIRECTOR HE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE IN SEPTEMBER 1992 DR GOODMAN WHO ALSO RESIGNED FROM THE COMPANY'S BOARD DECLINED TO COMMENT A SPOKESMAN FOR RADIATION CARE DECLINED TO ELABORATE ON THE REASON FOR DR GOODMAN'S DEPARTURE WHILE THE SPOKESMAN SAID THERE ARE NO PROBLEMS AT THE COMPANY RADIATION CARE'S STOCK PRICE HAS HOVERED AT ABOUT 3 A SHARE FOR MOST OF 1993 DOWN FROM ABOUT 16 A SHARE IN EARLY 1992 IN NASDAQ STOCK MARKET TRADING YESTERDAY RADIATION CARE CLOSED AT 175 OFF 25 CENTS THE COMPANY ALSO HAS POSTED A STRING OF QUARTERLY LOSSES FOR THE FIRST HALF OF ITS CURRENT FISCAL YEAR RADIATION CARE REPORTED THAT ITS NET LOSS WIDENED TO 18 MILLION OR 10 CENTS A SHARE FROM 397354 OR TWO CENTS A SHARE A YEAR EARLIER THE MOST RECENT SIX MONTHS INCLUDED A CHARGE OF 731502 DUE TO CLOSING A FACILITY REVENUE CLIMBED 18 TO 151 MILLION FROM 128 MILLION FOR NOW THE COMPANY SAID IT WILL BE MANAGED BY TED P CROWLEY CHIEF OPERATING OFFICER WITH THE BOARD'S ASSISTANCE 9312020099 931202 TECHNOLOGY & HEALTH VENTRITEX INC GETS WARNING FROM THE FDA BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION WARNED VENTRITEX INC THAT PROMOTIONAL MATERIALS FOR ITS HEART DEFIBRILLATOR CONTAIN UNSUBSTANTIATED AND MISLEADING STATEMENTS AND MAY VIOLATE FEDERAL LAW THE AGENCY NOTIFIED THE FASTGROWING SUNNYVALE CALIF CONCERN FOLLOWING A TWOMONTH FDA INQUIRY INTO THE COMPANY'S PROMOTIONAL PRACTICES THE NEWS SENT VENTRITEX SHARES SKIDDING 575 OR 14 TO 3650 IN NASDAQ STOCK MARKET TRADING AT ISSUE IS THE COMPANY'S SALE OF ITS CADENCE DEFIBRILLATOR A SURGICALLY IMPLANTED DEVICE THAT TREATS HEARTRHYTHM DEFECTS IN COMBINATION WITH AN ELECTRICAL LEAD MADE BY ELI LILLY & CO LEADS ARE WIRES THAT CONNECT DEFIBRILLATORS TO THE HEART AND USE ELECTRICAL IMPULSES TO SLOW HEARTBEATS THAT ARE TOO RAPID THE FDA TAKES THE POSITION THAT CLINICAL TRIALS HAVEN'T BEEN CONDUCTED TO SUPPORT THE USE OF THE TWO COMPANIES' DEVICES IN TANDEM THE LILLY LEAD CALLED ENDOTAK IS NOT APPROVED FOR USE WITH THE VENTRITEX CADENCE DEFIBRILLATOR AS THE SAFETY AND EFFECTIVENESS OF THIS COMBINATION HAS NEVER BEEN ESTABLISHED SAID RONALD M JOHNSON COMPLIANCE DIRECTOR AT THE FDA'S MEDICAL DEVICE CENTER IN A LETTER TO VENTRITEX PRESIDENT FRANK M FISCHER THE AGENCY CITED EXAMPLES OF VENTRITEX PROMOTIONAL LANGUAGE THAT IT DEEMED TO VIOLATE FOOD AND DRUG LAW FOR EXAMPLE THE MATERIALS SAID DETECTION OF RAPID HEARTBEATS WITH THE CADENCE AND ENDOTAK COMBINATION IS EXCELLENT AND THAT THE CADENCE IS COMPATIBLE WITH ENDOTAK THE REGULATORY ACTION COULD HAVE A BIG IMPACT ON THE RAPIDLY GROWING FIELD OF TREATING TACHYARRHYTHMIA OR TOORAPID HEARTBEATS WITH DEFIBRILLATORS SUCH DEVICES STILL ARE IN THEIR INFANCY BUT ANALYSTS HAVE PREDICTED ANNUAL INDUSTRY SALES OF 1 BILLION OR MORE BY THE TURN OF THE CENTURY VENTRITEX A SMALL COMPANY GARNERED US SALES OF 18 MILLION IN ITS MOST RECENT QUARTER ANALYSTS SAY IT IS RAPIDLY CATCHING UP TO COMPETITORS MEDTRONIC INC AND LILLY'S CARDIAC PACEMAKERS INC UNIT VENTRITEX OFFICIALS DIDN'T RESPOND YESTERDAY TO CALLS SEEKING COMMENT BUT ERIC KELLER CHIEF FINANCIAL OFFICER SAID EARLIER THIS WEEK THAT THE COMPANY HAS SUBMITTED TO THE FDA SUCCESSFUL CASE HISTORIES OF MORE THAN 80 PATIENTS WHO HAVE BEEN TREATED WITH THE COMBINATION OF THE VENTRITEX'S CADENCE AND LILLY'S ENDOTAK LEADS THE AGENCY COULD YET DEEM THOSE CASE HISTORIES SUFFICIENT OR IT COULD INSIST ON MORE EXTENSIVE CLINICAL TRIALS WHETHER YESTERDAY'S WARNING IMPEDES VENTRITEX'S SALES OF CADENCE WILL DEPEND ON DECISIONS OF INDIVIDUAL CARDIOLOGISTS MANY OF WHOM HAVE ALREADY DECIDED THAT THE CADENCE MACHINE AND THE ENDOTAK LEAD HAVE ADVANTAGES OVER COMPETING PRODUCTS ON THE US MARKET WHILE THE FDA REGULATES DEVICES AND SALES PRACTICES IT DOESN'T CONTROL DOCTORS' PRESCRIBING HABITS 9312020098 931202 FOREIGN EXCHANGE DOLLAR MOVES HIGHER AGAINST THE MARK MEETS A REVIVED YEN AND GIVES GROUND BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR MOVED HIGHER AGAINST THE MARK WEDNESDAY BUOYED BY ANOTHER SHOT OF POSITIVE US ECONOMIC DATA AND THE POSSIBILITY OF LOWER GERMAN INTEREST RATES BUT TECHNICAL RESISTANCE AGAINST STRONG DOLLAR GAINS CONTINUED TO PUT A ROADBLOCK IN THE US CURRENCY'S PATH KEEPING IT BELOW A KEY LEVEL AT 17250 MARKS MEANWHILE THE DOLLAR FELL AGAINST THE YEN WHICH WAS SUPPORTED BY A STOCK MARKET REBOUND IN JAPAN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17235 MARKS UP FROM 17150 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10875 YEN DOWN FROM 109085 YEN STERLING WAS TRADING AT 14784 DOWN FROM 14860 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10865 YEN AND AT 17218 MARKS DEALERS NOTED THAT THE DOLLAR DERIVED SOME STRENGTH FROM A POSITIVE SURVEY ON THE US MANUFACTURING SECTOR THE LATEST IN A SERIES OF RELEASES THAT HAVE PAINTED A ROSY PICTURE OF THE US ECONOMY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID THAT ITS COMPOSITE INDEX ROSE TO 557 IN NOVEMBER FROM 538 IN OCTOBER A BIGGER RISE THAN MANY ECONOMISTS HAD EXPECTED A READING ABOVE 50 INDICATES THAT THE MANUFACTURING SECTOR IS GENERALLY EXPANDING REACTION TO THE REPORT WAS A BIT MUTED AS INVESTORS WERE UNWILLING TO TEST NEW LEVELS JUST AHEAD OF A KEY MEETING THURSDAY OF THE GERMAN CENTRAL BANK OR THE BUNDESBANK AND THE US NOVEMBER EMPLOYMENT REPORT SET FOR FRIDAY THAT HESITANCY LEFT THE DOLLAR STUCK JUST UNDER 17250 MARKS THE TOP OF ITS RECENT RANGE AND AROUND THE LEVELS THAT SEVERAL RECENT DOLLAR RALLIES HAVE SPUTTERED THE DOLLAR IS JUST GETTING A LITTLE TIRED AT THE TOP END OF THE RANGE SAID SUSAN STEARNS VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN NEW YORK SHE ALSO NOTED THAT UNCONFIRMED RUMORS OF DOLLAR SALES BY EUROPEAN CENTRAL BANKS HAD SAPPED SOME OF THE DOLLAR'S STRENGTH THE MARKET HAS BECOME A BIT SPOILED SAID RANDOLPH L DONNEY DIRECTOR OF RESEARCH AT PEGASUS ECONOMETRIC GROUP WE'VE HAD BETTERTHANEXPECTED NEWS AND IT WASN'T ENOUGH TO GET THE JOB DONE MR DONNEY ALSO NOTED THAT THE PURCHASING MANAGEMENT GROUP'S EMPLOYMENT INDEX DIDN'T RISE NEARLY AS MUCH AS THE COMPOSITE ONE AND AUGURED POORLY FOR THE US NONFARM PAYROLLS REPORT DUE FRIDAY THE PURCHASING GROUP'S EMPLOYMENT INDEX ROSE SLIGHTLY TO 461 FROM 455 IN OCTOBER THERE WOULD HAVE BEEN A BIT MORE BUYING IF THAT HAD TURNED UP A BIT MORE BRISKLY MR DONNEY SAID WHILE TRADERS AGREED THAT SELLING RESISTANCE AT 17250 MARKS WILL CONTINUE TO BE TENACIOUS THEY ADDED THAT DOLLAR OPTIMISM REMAINS INTACT AND MANY PLAYERS HAVE ALREADY SET THEIR SIGHTS ON THE 17500MARK LEVEL IN THE NEXT FEW DAYS THE FIRST OPPORTUNITY TO APPROACH THAT POINT COULD COME THURSDAY IF THE BUNDESBANK MOVES TO CUT ITS OFFICIAL INTEREST RATES AT THE BIWEEKLY MEETING OF ITS POLICYMAKING CENTRAL BANK COUNCIL ANALYSTS AT SOME GERMAN COMMERCIAL BANKS HAVE SAID THEY ARE EXPECTING THE MEETING TO PRODUCE AN EASING IN THE BUNDESBANK'S 575 DISCOUNT RATE AND 675 LOMBARD RATE MANY NEW YORK TRADERS WERE SOMEWHAT SKEPTICAL HOWEVER PREDICTING THAT THE BUNDESBANK PROBABLY WILL WAIT AT LEAST UNTIL ITS NEXT MEETING ON DEC 16 TO MAKE ANY MOVES ON RATES 9312020097 931202 INTERNATIONAL VOLVO MARRIAGE WITH RENAULT MAY BE STALLED BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL SWEDISH INVESTORS DEALT ANOTHER BLOW TO AB VOLVO'S PLANS FOR A MERGER WITH RENAULT SA FANNING STOCK MARKET SPECULATION THAT THE SWEDISH AUTO MAKER COULD POSTPONE THE GIANT CORPORATE MARRIAGE TWO MUTUAL FUNDS CONTROLLED BY SKANDINAVISKA ENSKILDA BANKEN SWEDEN'S BIGGEST BANK ANNOUNCED THEY WOULD OPPOSE THE MERGER PROPOSAL AT VOLVO'S EXTRAORDINARY GENERAL MEETING NEXT TUESDAY THE SE BANKEN FUNDS HOLD A COMBINED 58 VOLVO VOTING STAKE WHILE THE TALLY VARIES IT'S ESTIMATED THAT INSTITUTIONS AND SHAREHOLDERS CONTROLLING BETWEEN 14 AND 18 OF VOLVO'S VOTING STAKE STAND OPPOSED TO THE TRANSACTION INVESTORS HOLDING 31 OF VOLVO'S VOTING STOCK HAVE SAID THEY SUPPORT THE MERGER PLAN HOWEVER THERE ARE SIGNS THAT SOME OF THAT SUPPORT IS UNRAVELING SWEDEN'S FOURTH NATIONAL PENSION FUND ONE OF VOLVO'S BIGGEST SHAREHOLDERS WITH A 75 VOTING STAKE HAS SUMMONED DIRECTORS TO A MEETING TOMORROW THE FUND NARROWLY VOTED LAST WEEK TO BACK THE PLAN BUT WARNED IT MIGHT RECONSIDER THE PROPOSAL TO MERGE VOLVO'S CAR AND TRUCK DIVISIONS WITH RENAULT REQUIRES APPROVAL FROM SHAREHOLDERS REPRESENTING A MAJORITY OF VOTING STOCK AT NEXT WEEK'S GENERAL MEETING MEANWHILE VOLVO'S BENCHMARK CLASS B STOCK SURGED 31 SWEDISH KRONOR 365 OR 75 IN HEAVY TRADING YESTERDAY FOR WEEKS VOLVO BSHARES HAVE RALLIED ON DAYS WHEN PROSPECTS FOR THE MERGER LOOKED DIM AS A SUCCESSION OF BIG INSTITUTIONAL SHAREHOLDERS JOINED THE OPPOSITION THIS WEEK THE BSHARES HAVE SPURTED NEARLY 14 IN EXPLAINING SE BANKEN'S REJECTION OF THE PLAN PETER THELIN PRESIDENT OF THE BANK'S MUTUAL FUNDS UNIT SAID MANY MAJOR SHAREHOLDERS HAVE BEEN VERY SPECIFIC ABOUT VITAL INFORMATION THEY REQUESTED FROM VOLVO REGARDING THE MERGER BUT THE COMPANY SIMPLY HASN'T GIVEN US WHAT WE ASKED FOR VOLVO MANAGEMENT SHOULD WITHDRAW RENAULT'S MERGER PROPOSAL AT NEXT WEEK'S GENERAL MEETING START OVER FROM SCRATCH AND COME BACK WITH A NEW PROPOSAL AT THE REGULARLY SCHEDULED SHAREHOLDERS MEETING THIS SPRING MR THELIN CAUTIONED THAT CONFIDENCE IN VOLVO COULD SUFFER SHOULD MANAGEMENT ATTEMPT TO FORCE THROUGH THE RENAULT TRANSACTION DESPITE STRONG OBJECTIONS FROM INVESTORS AS WELL AS EMPLOYEES VOLVO OFFICIALS ACKNOWLEDGE THAT WINNING THE SHOWDOWN VOTE BY A SLIM MARGIN COULD CREATE BIG PROBLEMS ESPECIALLY SINCE POSSIBLE SWING VOTES WOULD BE PROVIDED THROUGH CONTROVERSIAL CROSSSHAREHOLDINGS HELD BY RENAULT AND CERTAIN OTHER VOLVO AFFILIATES YET AT THE SAME TIME VOLVO FRETS THAT A REBUFF OF THE PLAN MIGHT JEOPARDIZE FUTURE STRATEGIC COOPERATION WITH RENAULT LOSING NEXT WEEK'S SHAREHOLDER VOTE ALSO COULD PLUNGE THE SWEDISH AUTO MAKER INTO MANAGEMENT TURMOIL VOLVO'S CHAIRMAN PEHR GYLLENHAMMAR HAS COME UNDER HEAVY FIRE FOR TACTICAL BLUNDERS IN PROMOTING THE MERGER TO SHAREHOLDERS WHO ARE WARY ABOUT HOW MUCH THE PLAN WILL HELP THE BOTTOM LINE AND WHAT SORT OF CONTROL THE FRENCH WILL GAIN OVER THE PRIZED SWEDISH COMPANY AMONG OTHER THINGS IN A POINTED CHALLENGE LAST WEEK TO MR GYLLENHAMMAR'S TENURE THE FOURTH PENSION FUND INSTRUCTED ITS PRESIDENT TO PUSH FOR CREATION OF A NOMINATING COMMITTEE AMONG BIG INSTITUTIONAL SHAREHOLDERSAIMING AT A RESHUFFLE OF VOLVO'S BOARD AT THE SPRING SHAREHOLDERS' MEETING THAT INITIATIVE INTENSIFIED DOUBTS THAT MR GYLLENHAMMAR CAN CLING TO THE VOLVO CHAIRMANSHIP MUCH LONGER IT ALSO CALLED INTO QUESTION HIS NOMINATION AS CHAIRMAN DESIGNATE OF THE SUPERVISORY BOARD OF THE FUTURE RENAULTVOLVO CONCERN IN AN INTERVIEW BJOERN WOLRATH CHIEF EXECUTIVE OF SKANDIA INSURANCE CO SWEDEN'S BIGGEST INSURER AND A MAJOR VOLVO SHAREHOLDER DESCRIBED HOW HE GOT FED UP WHEN MR GYLLENHAMMAR BEGAN COMPLAINING IN HIS USUAL STYLE ABOUT INVESTORS' MEDDLING IN VOLVO AFFAIRS THE SKANDIA CHIEF CITED A LONG LIST OF DELICATE ISSUES THAT CONTINUED TO CLOUD THE MERGER PROPOSAL FROM FRENCH INTRANSIGENCE ABOUT WORLDTRADE TALKS TO ERRATIC POLITICAL INTERFERENCE IN MANAGEMENT OF STATEOWNED FRENCH COMPANIES THE SCHEDULE FOR RENAULT'S EVENTUAL PRIVATIZATION HAS BEEN A STICKY ISSUE IN THE MERGER PLAN THOSE OBJECTIONS PROMPTED SKANDIA WHICH HOLDS A 36 VOLVO VOTING STAKE TO ANNOUNCE LATE MONDAY IT WOULD VOTE AGAINST THE MERGER PLAN 9312020096 931202 BUSINESS BRIEF AMES DEPARTMENT STORES INC LOSS FOR FISCAL 3RD QUARTER SHRANK DESPITE SALES DROP AMES DEPARTMENT STORES INC WHICH EMERGED FROM BANKRUPTCY PROTECTION LAST YEAR NARROWED ITS LOSS FOR THE FISCAL THIRD QUARTER ENDED OCT 31 TO 16 MILLION FROM 914 MILLION A YEAR EARLIER THE PRIOR YEAR'S RESULTS INCLUDE A 35 MILLION CHARGE FROM BANKRUPTCY EXPENSES AND A 725 MILLION RESTRUCTURING CHARGE THE ROCKY HILL CONN COMPANY HAD A LOSS OF EIGHT CENTS A SHARE BASED ON 201 MILLION SHARES OUTSTANDING COMPARED WITH A LOSS OF 252 A SHARE BASED ON 376 MILLION SHARES A YEAR EARLIER SALES DECLINED 14 TO 5265 MILLION FROM 6143 MILLION LAST YEAR AS A RESULT OF IMPROVING PROFIT MARGINS THE COMPANY SAID IT ANTICIPATES A MODEST NET PROFIT BY THE END OF THE CURRENT FISCAL YEAR 9312020095 931202 POSNER SON BARRED FROM HIGH POSITIONS AT PUBLIC COMPANIES JUDGE'S ORDER IN FISCHBACH CASE REFLECTS NOTORIOUS HISTORY' OF SECURITIESLAW ACTIONS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VICTOR POSNER WHO HAS HAD RUNINS WITH SECURITIESLAW AUTHORITIES FOR 21 YEARS WAS BANNED BY A FEDERAL JUDGE FROM SERVING AS AN OFFICER OR DIRECTOR OF ANY PUBLICLY TRADED COMPANY THE UNUSUAL PENALTY ALSO APPLIES TO MR POSNER'S SON STEVEN POSNER WHO ALONG WITH HIS FATHER HAS BEEN AN OFFICER OF SEVERAL POSNERCONTROLLED COMPANIES OVER THE YEARS INCLUDING SHARON STEEL CORP DWG CORP AND SALEM CORP THE TWO MEN WERE ORDERED TO PAY THE GOVERNMENT 39 MILLION IN A HARSH REBUKE US DISTRICT JUDGE MILTON POLLACK CALLED THE TWO MIAMI BEACH BUSINESSMEN RECIDIVIST VIOLATORS OF THE FEDERAL SECURITIES LAWS NOTING PREVIOUS SECURITIES AND EXCHANGE COMMISSION ACTIONS AND OTHER SUITS AGAINST THE POSNERS THE JUDGE SAID IN HIS RULING THAT VICTOR POSNER AND STEVEN POSNER HAVE HAD A LONG AND NOTORIOUS HISTORY OF ENGAGING IN SELFDEALING AND CORPORATE WASTE TO THE DETRIMENT OF THE PUBLIC SHAREHOLDERS OF COMPANIES UNDER THEIR CONTROL THE POSNERS' ATTORNEY DENNIS BLOCK OF THE NEW YORK LAW FIRM WEIL GOTSHAL & MANGES SAID WE DON'T BELIEVE THERE IS ANY BASIS FOR JUDGE POLLACK'S DECISION AND WE PLAN TO APPEAL JUDGE POLLACK'S ORDER CAME IN A CIVIL SUIT BROUGHT BY THE SEC AGAINST THE POSNERS IN 1988 AS PART OF THE AGENCY'S SWEEPING CASE AGAINST DREXEL BURNHAM LAMBERT INC MICHAEL MILKEN AND IVAN BOESKY THE OTHER DEFENDANTS IN THE CASE PREVIOUSLY SETTLED FORFEITING HUNDREDS OF MILLIONS OF DOLLARS IN ALLEGEDLY ILLGOTTEN PROFITS INVOLVING JUNKBOND TRANSACTIONS THE POSNERS WERE NAMED AS DEFENDANTS IN THAT SUIT BECAUSE OF THEIR ROLE IN AN ALLEGEDLY FRAUDULENT SCHEME TO TAKE OVER FISCHBACH CORP IN 1984 THE SEC ALLEGED THAT WITH THE HELP OF DREXEL AND MR MILKEN THE POSNERS SECRETLY ARRANGED TO PARK FISCHBACH STOCK OR PLACE IT WITH MR BOESKY TO CONCEAL THEIR INTENTION TO SEIZE CONTROL OF THE COMPANY MR BOESKY SAID THAT IN RETURN HE WAS GUARANTEED THAT HE FACED NO RISK OF A LOSS ON HIS INVESTMENT DREXEL MR MILKEN AND MR BOESKY PLEADED GUILTY TO FELONY CHARGES STEMMING FROM THE TRANSACTIONS JUDGE POLLACK WHO PRESIDED OVER A NONJURY TRIAL IN THE POSNER CASE IN JUNE RULED THAT THE POSNERS HAD VIOLATED SECURITIES LAWS IN THE FISCHBACH ARRANGEMENT IN ADDITION TO BANNING THEM FROM BEING OFFICERS OR DIRECTORS OF ANY PUBLIC COMPANY HE ORDERED THEM TO TURN OVER 39 MILLION IN COMPENSATION THEY RECEIVED FROM FISCHBACH FROM 1987 TO 1990 THE POSNERS EVENTUALLY SOLD OFF THEIR STAKE IN THE NEW YORK ELECTRICAL CONTRACTOR HAD IT NOT BEEN FOR THEIR FRAUDULENT ARRANGEMENT WITH MILKEN AND BOESKY THE POSNERS WOULD NOT HAVE BEEN ABLE TO ACQUIRE CONTROL OF FISCHBACH AND THUS WOULD NOT HAVE BEEN ABLE TO PLACE THEMSELVES IN HIGHPAID POSITIONS AT THE COMPANY JUDGE POLLACK SAID JUDGE POLLACK'S DECISION REFLECTS AUTHORITIES' FRUSTRATION WITH THE ELDER MR POSNER WHO PREVIOUSLY AGREED TO CONSENT ORDERS SETTLING TWO OTHER SEC CASES IN THOSE SETTLEMENTS MR POSNER NEITHER ADMITTED NOR DENIED WRONGDOING BUT HE AGREED NOT TO VIOLATE SECURITIES LAWS IN THE FUTURE SUCH CONSENT DECREES UP THE ANTE IN TERMS OF THE PENALTIES DEFENDANTS FACE JUDGE POLLACK SAID IN HIS RULING THAT IN LIGHT OF THE PREVIOUS SETTLEMENTS IT WOULD SERVE LITTLE PURPOSE FOR THE COURT TO ISSUE YET ANOTHER INJUNCTION AGAINST SUCH RECIDIVIST VIOLATORS WITHOUT TAKING ADDITIONAL STEPS SUCH AS BARRING THEM FROM HAVING ANY CORPORATE ROLE AT PUBLICLY TRADED COMPANIES THE ELDER MR POSNER WHO IS IN HIS 70S IS CURRENTLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT SALEM A PITTSBURGH ENGINEERING COMPANY BARRY GOLDSMITH CHIEF LITIGATOR FOR THE SEC SAID THE TWO MEN ARE OFFICERS OR DIRECTORS AT A FEW OTHER SMALL COMPANIES MR GOLDSMITH SAID THAT THE POSNERS WILL HAVE TO GIVE UP THOSE POSTS BUT HE SAID THE ORDER'S LIMITS ON THEIR INVOLVMENT IN OTHER COMPANIES IN THE FUTURE IS MORE SIGNIFICANT TO ENFORCE THE BAN JUDGE POLLACK ORDERED THAT THE TWO MEN TURN OVER ANY CONTROLLING INTERESTS THEY HAVE IN PUBLICLY TRADED COMPANIES TO AN INDEPENDENT TRUST TO BE SET UP BY THE SEC THE POSNERS WOULD CONTINUE TO OWN THE SHARES MR GOLDSMITH SAID BUT THEY CAN'T VOTE THE SHARES TO PLACE SOMEONE ON THE BOARD IT WILL PREVENT THEM FROM DOMINATING A COMPANY THE POSNER TRIAL FEATURED CONFLICTING TESTIMONY BY MR MILKEN A WITNESS FOR THE DEFENDANTS AND MR BOESKY A WITNESS FOR THE SEC ABOUT THE FISCHBACH TRANSACTIONS JUDGE POLLACK IN HIS ORDER SAID HE WAS MORE INCLINED TO BELIEVE THE TESTIMONY OF MR BOESKY AN ADMITTED INSIDERTRADER THAN THAT OF MR MILKEN FORMER HEAD OF DREXEL'S JUNKBOND DEPARTMENT MR MILKEN EARLIER THIS YEAR FINISHED SERVING A PRISON SENTENCE FOR SIX SECURITIESRELATED FELONIES INCLUDING ONE RELATED TO THE FISCHBACH TRANSACTIONS AT THE TRIAL MR MILKEN SAID HE HADN'T ENCOURAGED MR BOESKY TO BUY THE FISCHBACH STOCK AND THAT HE DIDN'T RECALL EVER MAKING A GUARANTEE THAT MR BOESKY WOULD FACE NO LOSS ON THE INVESTMENT JUDGE POLLACK HOWEVER SAID MILKEN'S DENIALS LAPSES OF RECOLLECTION AND RESPONSES WERE UNWORTHY OF BELIEF CONTRADICTORY AND INTERNALLY INCONSISTENT IN A STATEMENT ISSUED BY HIS SPOKESWOMAN MR MILKEN SAID MY TESTIMONY WAS TRUTHFUL IN ALL RESPECTS HE ADDED THAT HE PLANS TO ADDRESS HIS ROLE IN THE FISCHBACH TRANSACTIONS IN MY FORTHCOMING BOOK 9312020094 931202 SMITH BARNEY IS BARRED FROM SHIFTING BOOKKEEPING BUSINESS FROM BOSTON CO BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE ISSUED A PRELIMINARY INJUNCTION BARRING SMITH BARNEY SHEARSON INC FROM DIVERTING ITS MUTUALFUND BOOKKEEPING BUSINESS FROM MELLON BANK CORP'S BOSTON CO THE INJUNCTION IN A CONTRACTUAL DISPUTE BLOCKS SMITH BARNEY SHEARSON FROM COMPETING AGAINST BOSTON CO TO PROVIDE ADMINISTRATIVE SERVICES TO ANY MUTUAL FUNDS CREATED BY MERGING SMITH BARNEY AND SHEARSON FUNDS NEW FUNDS CREATED BY SMITH BARNEY AND CLONES OR REPLICAS OF SHEARSON FUNDS MOREOVER THE INJUNCTION REQUIRES SMITH BARNEY SHEARSON TO RECOMMEND TO THESE FUNDS' GOVERNING BOARDS THAT BOSTON CO PROVIDE ADMINISTRATIVE SERVICES THE INJUNCTION COVERS A SEVENYEAR PERIOD STARTING LAST MAY 21 IN THE INJUNCTION ISSUED YESTERDAY IN PITTSBURGH US DISTRICT JUDGE ALAN N BLOCH DESCRIBED AS CLEAR AND UNAMBIGUOUS THE WORDING OF A DISPUTED CONTRACT MELLON CONSIDERS THE CASE CRITICAL TO THE FUTURE OF BOSTON CO'S MUTUALFUND BUSINESS BECAUSE THE SHEARSON FUNDS ACCOUNT FOR MOST OF BOSTON CO'S MUTUALFUND SERVICING REVENUE OF 170 MILLION A YEAR A SPOKESMAN FOR PITTSBURGHBASED MELLON SAID THE BANK STANDS TO GAIN MORE THAN ANTICIPATED BECAUSE THE INJUNCTION COVERS SMITH BARNEY SHEARSON FUNDS THAT MIGHT BE CREATED DURING THE SEVEN YEARS AS WELL AS MERGED SMITH BARNEY AND SHEARSON FUNDS THERE'S POTENTIAL FOR GROWTH HERE WE HADN'T EXPECTED SAID THE MELLON SPOKESMAN SMITH BARNEY SHEARSON WHICH HAD SOUGHT COST SAVINGS BY REMOVING ITS BUSINESS FROM BOSTON CO SAID IT WILL APPEAL THE RULING WE ARE DISAPPOINTED THAT THE COURT HAS INTERPRETED VERY LIMITED CONTRACTUAL PROVISIONS IN A WAY THAT PROHIBITS US FROM PROVIDING ADDITIONAL ADMINISTRATIVE SERVICES ON A MORE COMPETITIVE COST BASIS TO THE FUNDS AT ISSUE HERE THE SPOKESMAN SAID MELLON'S SUIT FILED IN SEPTEMBER CONTENDED SMITH BARNEY SHEARSON SET UP MUTUAL FUNDS THAT ARE CLONES OF FUNDS THAT BOSTON CO ADMINISTERS FOR SHEARSON MELLON ACQUIRED BOSTON CO FROM AMERICAN EXPRESS CO'S SHEARSON UNIT IN A 145 BILLION TRANSACTION ANNOUNCED IN SEPTEMBER 1992 IN THE SUIT MELLON SAID SMITH BARNEY SHEARSON'S ACTIONS VIOLATE A NONCOMPETE AGREEMENT THAT WAS PART OF PRIMERICA'S 115 BILLION ACQUISITION OF SHEARSON FROM AMERICAN EXPRESS ANNOUNCED LAST MARCH MELLON SAID THAT WHEN IT AGREED TO ACQUIRE BOSTON CO FROM SHEARSON THERE WAS THE SPECIFIC CONDITION THAT THE MONEYMANAGEMENT COMPANY CONTINUE TO ADMINISTER THE SHEARSON FUNDS ACCORDING TO THE INJUNCTION SMITH BARNEY SHEARSON MUST RECOMMEND TO ABOUT HALF OF THE FUNDS' BOARDS THAT A MELLON REPRESENTATIVE SERVE ON THOSE BOARDS ADDITIONALLY IF A BOARD TURNS DOWN BOSTON CO IN FAVOR OF ANOTHER PROVIDER OF ADMINISTRATIVE SERVICES SMITH BARNEY SHEARSON HAS TO USE REASONABLE EFFORTS TO AFFORD BOSTON CO AN OPPORTUNITY TO SUBMIT A WRITTEN BID TO THAT MUTUAL FUND IN OTHER BUSINESS MELLON SAID IT NO LONGER ANTICIPATES A GAIN OF ABOUT 15 MILLION FROM THE PREVIOUSLY ANNOUNCED SALE OF TWO INFORMATION SERVICES BUSINESSES TO FISERV INC OF MILWAUKEE INSTEAD MELLON SAID IT EXPECTS ANY GAIN TO BE IMMATERIAL MELLON SAID THAT SINCE THE SALE WAS ANNOUNCED AUG 2 THE SALE PRICE HAS BEEN LOWERED TO 52 MILLION FROM 70 MILLION AS A RESULT OF REDUCED REVENUE PROJECTIONS FOR THE TWO UNITS FINANCIAL INSTITUTION OUTSOURCING AND DATALINK SYSTEMS INC THE TRANSACTION CLOSED YESTERDAY MELLON COMMON STOCK ROSE 1 OR 18 TO CLOSE AT 5650 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9312020093 931202 MOVIES DEMOLITION MAN' TRADES TACOS FOR PIZZA ABROAD BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD WHEN IT COMES TO PLACING PRODUCTS IN MOVIES MARKETERS DREAM OF STRIKING A DEAL LIKE THE ONE TACO BELL HAD WITH DEMOLITION MAN THIS FALL IN THE MOVIE WHICH WARNER BROS RELEASED DOMESTICALLY IN OCTOBER THE YEAR IS 2032 AND TACO BELL IS THE ONLY FASTFOOD CHAIN ON THE PLANET ALL OTHER CHAINS MOVIEGOERS LEARN LOST THE FRANCHISE WARS OF THE EARLY 21ST CENTURY IF THAT ISN'T FLATTERING ENOUGH STAR SYLVESTER STALLONE AND OTHER ACTORS SAY THE CHAIN'S NAME SEVERAL TIMES AND A KEY SCENE TAKES PLACE AT ONE OF ITS RESTAURANTS BUT FILMGOERS WHO GO TO SEE DEMOLITION MAN IN GERMANY WHERE IT OPENS TODAY WILL GET A DIFFERENT VIEW OF THE FUTURE IN A DRAMATIC INDICATION OF HOW FAR A MOVIE STUDIO WILL GO TO GET PROMOTIONAL SUPPORT WARNER CUT TACO BELL OUT OF THE MOVIE AND CAST PIZZA HUT AS THE RESTAURANT OF CHOICE FOR THE FILM'S INTERNATIONAL RUN THE TIME WARNER INC STUDIO SAYS IT BELIEVES THIS IS THE FIRST TIME A FILM HAS BEEN EDITED AFTER ITS INITIAL RELEASE BECAUSE OF A PROMOTION THE DEAL WAS STRUCK BECAUSE TACO BELL HAS ONLY A FEW RESTAURANTS OUTSIDE THE US SO IT COULDN'T OFFER THE STUDIO PROMOTIONAL SUPPORT PIZZA HUT ON THE OTHER HAND HAS OUTLETS IN 78 COUNTRIES MORE THAN MCDONALD'S CORP AND WAS INTERESTED IN RUNNING PROMOTIONS AROUND THE GLOBE WHAT'S MORE TACO BELL AND PIZZA HUT ARE BOTH UNITS OF PEPSICO INC SO CORPORATE FEELINGS WEREN'T HURT STILL THE MOVE IS DRAWING FIRE FROM SOME CORNERS OF THE FILM INDUSTRY AS A POTENTIALLY DANGEROUS NEW STAGE IN THE PRODUCTPLACEMENT BUSINESS MANY FILM CRITICS WHO HAVE COMPLAINED IN THE PAST ABOUT MOVIES BEING EDITED FOR TV OR AIRLINE VIEWING DON'T LIKE THE IDEA THAT FILMS ARE BEING REEDITED FOR PROMOTIONAL REASONS FROM A MARKETING STANDPOINT IT MAKES SENSE SAYS PETER RAINER CHAIRMAN OF THE NATIONAL SOCIETY OF FILM CRITICS FROM ANY OTHER STANDPOINT IT'S PRETTY DEPLORABLE WARNER MAKES NO APOLOGIES AND EXECUTIVES SAY THE CHANGES HAVE THE FULL SUPPORT OF THE PRODUCER JOEL SILVER AND THE DIRECTOR MARCO BRAMBILLA THE STUDIO SAYS THAT NEW COMPUTER TECHNOLOGY ALLOWED IT TO DIGITALLY CHANGE TACO BELL SIGNS TO READ PIZZA HUT ON THE FILM'S NEGATIVE AND ONLY ONE BRIEF SCENE HAD TO BE RESHOT ON A SOUNDSTAGE THE TECHNOLOGY IS SO NEW THAT THE SUBSTITUTION COULDN'T HAVE BEEN DONE SIX MONTHS AGO WARNER SAYS WARNER AND PIZZA HUT WOULDN'T DISCLOSE THE DEAL'S TERMS BUT PEOPLE FAMILIAR WITH IT SAY THAT PIZZA HUT IS PAYING THE COST OF REEDITING THE FILM ESTIMATED AT ABOUT 250000 MR STALLONE AND TWO OTHER ACTORS AGREED TO DO SOME RERECORDING THE ACTION STAR STILL MOUTHS TACO BELL BUT THE WORDS ON THE SOUNDTRACK NOW ARE PIZZA HUT WARNER DOESN'T THINK ANYBODY WILL NOTICE MOST FOREIGN AUDIENCES WILL BE READING SUBTITLES OR WATCHING DUBBED VERSIONS ANYWAY IN THE MOVIE MR STALLONE PLAYS A POLICE OFFICER WHO WAS FROZEN IN 1996 BUT IS THAWED IN 2032 AND INSTRUCTED TO CAPTURE A BAD GUY PLAYED BY WESLEY SNIPES AFTER MR STALLONE SAVES A POLITICIAN'S LIFE THE POLITICIAN TREATS MR STALLONE TO A MEAL THAT'S WHERE TACO BELL OR PIZZA HUT COMES IN ON THE WAY TO THE RESTAURANT MR STALLONE COMPLAINS TO ANOTHER COP ABOUT THE TACKY RESTAURANT CHOICE SO WHAT'S WITH THIS GUY HE SAYS I SAVED HIS LIFE AND MY REWARD IS DINNER AND DANCING AT PIZZA HUT ASKS MR STALLONE IN THE INTERNATIONAL VERSION I MEAN HEY I LIKE A BIG FAT PIECE OF PIZZA BUT COME ON THE OTHER COP PLAYED BY SANDRA BULLOCK RESPONDS YOUR TONE IS QUASIFACETIOUS BUT YOU DO NOT REALIZE THAT PIZZA HUT WAS THE ONLY RESTAURANT TO SURVIVE THE FRANCHISE WARS NOW ALL RESTAURANTS ARE PIZZA HUTS SHE SAYS THE BLATANT PIZZA HUT PLUGS CONTINUE WHEN THE TWO PULL UP AT THE RESTAURANT A TONY PLACE THAT LOOKS MORE LIKE SPAGO THAN A FASTFOOD JOINT THEY ARE WELCOMED BY A PARKING VALET AND GO INSIDE WHERE A PIANIST PLAYS AS PATRONS IN TUXEDOS AND COCKTAIL DRESSES DINE BY CANDLELIGHT THE NEW PIZZA HUT/DEMOLITION MAN PROMOTION IS BELIEVED TO BE THE MOST EXTENSIVE WORLDWIDE PROMOTION TO DATE BETWEEN A FASTFOOD COMPANY AND A STUDIO PIZZA HUT RESTAURANTS IN 24 COUNTRIES WILL PITCH THE MOVIE THE IDEA CAME UP JUST A MONTH AGO AFTER THE US VERSION OF DEMOLITION MAN HAD ALREADY BEGUN PLAYING IN THE UK AND AUSTRALIA US STUDIOS ARE EAGER TO FIND PROMOTION DEALS OVERSEAS BECAUSE THE MARKET FOR THEIR MOVIES THERE STILL HAS ROOM TO GROW BUT IT'S BEEN TRICKY BECAUSE MOVIES OPEN IN DIFFERENT COUNTRIES ON DIFFERENT DATES AND IT'S HARD TO STRUCTURE AND SCHEDULE MOVIE PROMOTIONS AROUND OTHER REGULARLY SCHEDULED PROMOTIONS WHILE DEMOLITION MAN IS OPENING TODAY IN GERMANY FOR EXAMPLE THE FILM WON'T OPEN IN BELGIUM UNTIL JANUARY FRANCE UNTIL FEBRUARY AND JAPAN UNTIL MARCH IT'S AN ENORMOUS UNDERTAKING TO PULL THIS KIND OF A DEAL OFF SAYS IRA MAYER PUBLISHER OF THE ENTERTAINMENT MARKETING LETTER HE NOTES THAT FASTFOOD COMPANIES HAVE DIFFERENT MARKETING DIRECTORS IN EACH COUNTRY WITH DIFFERENT OBJECTIVES DIFFERENT TIME NEEDS AND DIFFERENT EGOS BUT MICHAEL LORELLI PRESIDENT OF PIZZA HUT INTERNATIONAL SAYS THIS PROMOTION WILL WORK BECAUSE MANY PEOPLE AT PIZZA HUT ARE EXCITED ABOUT THE OPPORTUNITY TO TIE IN WITH THE FILM HE CONCEDES THAT MANAGERS IN DIFFERENT TERRITORIES SOMETIMES HAVE THEIR OWN AGENDAS BUT HE SAYS RIGHT NOW THEY'RE DREAMING UP DEMOLITION MAN' PIZZAS 9312020091 931202 BUSINESS BRIEF FOURTH FINANCIAL CORP COMPANY REACHES AGREEMENT TO BUY LSB INDUSTRIES' UNIT FOURTH FINANCIAL CORP SAID IT HAS REACHED AN AGREEMENT IN PRINCIPLE TO BUY THE FINANCIAL SERVICES SUBSIDIARY OF LSB INDUSTRIES INC FOR 93 MILLION FOURTH FINANCIAL IN WICHITA KAN SAID THE DEAL WHICH IS SUBJECT TO A DEFINITIVE AGREEMENT AND REGULATORY APPROVAL WILL MAKE LSB'S EQUITY BANK FOR SAVINGS FA A PART OF BANK IV OKLAHOMA NA FOURTH FINANCIAL'S OKLAHOMABASED SUBSIDIARY FOR ITS INVESTMENT FOURTH FINANCIAL WILL ACQUIRE DEPOSITS TOTALING 340 MILLION LOANS TOTALING 162 MILLION A 200MILLION MORTGAGE SERVICING PORTFOLIO A MORTGAGEBANKING NETWORK EXPECTED TO ORIGINATE 100 MILLION IN LOANS THIS YEAR 14BRANCH LOCATIONS AND A CREDITCARD OPERATION AND TAXLOSS CARRY FORWARDS TOTALING 64 MILLION FOURTH FINANCIAL CHAIRMAN DARRELL G KNUDSON SAID THE DEAL WILL BOOST THE COMPANY'S RETAILBRANCH NETWORK IN OKLAHOMA CITY AND MAKE FOURTH FINANCIAL THE LARGEST PROVIDER OF CREDIT CARD SERVICES IN THE STATE 9312020090 931202 BUSINESS BRIEF PET INC SALE OF ORVILLE KENT UNIT TO RESULT IN ADDED CHARGE PET INC SAID IT FOUND A BUYER FOR ITS ORVILLE KENT REFRIGERATEDSALADS BUSINESS BUT INDICATED THAT THE SALE PRICE WILL BE LESS THAN HOPED AND WILL RESULT IN AN ADDITIONAL AFTERTAX CHARGE TO EARNINGS PET SAID HORIZON PARTNERS LTD A CLOSELY HELD MILWAUKEE DISTRIBUTOR OF CHEESES AND OTHER REFRIGERATED PRODUCTS SIGNED A LETTER OF INTENT TO ACQUIRE ORVILLE KENT IN THE FISCAL THIRD QUARTER ENDING MARCH 31 NEITHER PARTY DISCLOSED TERMS PET BASED IN ST LOUIS ESTIMATED THE FISCAL SECONDQUARTER CHARGE AT BETWEEN 25 MILLION AND 30 MILLION OR 24 CENTS TO 29 CENTS A SHARE OFFSETTING THE ADDED CHARGE WILL BE A 275 MILLION TAX REFUND RELATED TO CAPITALGAINS TAXES PAID ON THE PREVIOUSLY ANNOUNCED SALE OF A SCANDINAVIAN SNACK FOODS BUSINESS TO PHILIP MORRIS COS PET SHARES CLOSED YESTERDAY AT 1675 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9312020089 931202 BUSINESS BRIEF EASTERN ENTERPRISES SALE OF IONPURE SUBSIDIARY TO US FILTER IS FINISHED EASTERN ENTERPRISES COMPLETED THE PREVIOUSLY ANNOUNCED SALE OF ITS IONPURE TECHNOLOGIES UNIT TO US FILTER CORP FOR A 22 EQUITY INTEREST IN US FILTER THE SALE WAS COMPLETED AFTER US FILTER STOCKHOLDERS AUTHORIZED THE ISSUANCE OF COMMON STOCK TO EASTERN AT US FILTER'S ANNUAL MEETING YESTERDAY EASTERN A WESTON MASS BARGE OPERATOR AND NATURALGAS DISTRIBUTOR RECEIVED 2030000 SHARES OF US FILTER COMMON STOCK WITH A MARKET VALUE OF ABOUT 51 MILLION BECOMING US FILTER'S LARGEST SHAREHOLDER EASTERN ALSO RECEIVED 100000 IN CASH FOR IONPURE A MAKER OF WATERPURIFYING SYSTEMS EASTERN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER J ATWOOD IVES 57 YEARS OLD WAS NAMED A DIRECTOR OF US FILTER A PALM DESERT CALIF MAKER OF WATERTREATMENT EQUIPMENT US FILTER ALSO NAMED JOHN L DIEDERICH TO ITS BOARD INCREASING THE BOARD'S SIZE TO NINE MR DIEDERICH 57 IS EXECUTIVE VICE PRESIDENT OF ALUMINUM CO OF AMERICA PITTSBURGH 9312020088 931201 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 9312020087 931202 SMALL STOCKS FOCUS STOCKS GAIN ON A STREAM OF GOOD NEWS LED BY RECENTLY HIT TECHNOLOGY ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK GOOD NEWS FROM ALL SIDES CHEERED SMALLCOMPANY STOCK INVESTORS PUSHING PRICES HIGHER ACROSS THE BOARD THE RECENTLY BATTERED TECHNOLOGY GROUP LED THE ADVANCE STRONG RALLIES OVERSEAS FIRMER BOND PRICES AND ENCOURAGING ECONOMIC DATA SET THE TONE BIG BOARD STOCKS HAD TRADED IN RECORD TERRITORY ALSO PROVIDING A BOOST ALTHOUGH THEY BACKED OFF SOMEWHAT IN LATE TRADING THE DOW JONES INDUSTRIAL AVERAGE JUMPED 1313 POINTS OR 036 TO FINISH AT 369708 AFTER BRIEFLY SURPASSING ITS CLOSING RECORD OF 371077 EARLIER THE RUSSELL 2000 INDEX JUMPED 220 POINTS OR 088 TO 25261 THE BAROMETER MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES FOR THE REST OF THE MONTH TIM GRAZIOSO VICE PRESIDENT AND MANAGER OF OVERTHECOUNTER TRADING AT CANTOR FITZGERALD SECURITIES LTD EXPECTS THE NASDAQ COMPOSITE INDEX TO TEST ITS CLOSING HIGH OF 78742 BEFORE THE YEAR ENDS BUT AFTER THAT HE LOOKS FOR INVESTORS TO TAKE PROFITS AGAIN AMONG INDIVIDUAL STOCKS IN THE TECHNOLOGY SECTOR CHEYENNE SOFTWARE AMEX ROSLYN NY GAINED 1 7/8 TO 31 7/8 QUANTUM BASED IN MILPITAS CALIF ADDED 1/2 TO 14 3/4 AND SYMANTEC CUPERTINO CALIF ROSE 7/8 TO 17 3/8 CATALYST SEMICONDUCTOR INC WAS A NOTABLE DECLINER AND ITS STOCK PRICE TUMBLED 2 1/4 TO 7 3/4 THE SANTA CLARA CALIF COMPANY SAID IT EXPECTS TEMPORARY DELAYS IN SHIPPING ITS NEW 08 MICRON FLASH MEMORY PRODUCT TO HURT FISCAL THIRDQUARTER EARNINGS AND SALES CATALYST EXPECTS TO EARN 400000 TO 700000 FOR THE QUARTER ON SALES OF 13 MILLION TO 15 MILLION COMPARED WITH A LOSS OF 13 MILLION ON SALES OF 79 MILLION A YEAR EARLIER COMMUNICATIONS ISSUES FARED WELL PREFERRED ENTERTAINMENT A COUNTRYSIDE ILL PROVIDER OF WIRELESS CABLE SERVICES CLIMBED 2 1/4 TO 23 3/4 ACS A TREVOSE PA DISTRIBUTOR OF TELEVISION AND SATELLITEDELIVERED PROGRAMMING MOVED UP 1 1/4 TO 16 AND TCA CABLE TV TYLER TEXAS ROSE 1 1/4 TO 25 1/2 CHIEF EXECUTIVES OF THE THREE COMPANIES SAID COST REDUCTIONS AND THE ABILITY TO PROVIDE SERVICES NATIONWIDE WILL MAKE THE NEW FIRM A DOMINANT PLAYER IN THE HOME INFUSION INDUSTRY NEW ISSUE PARKERVISION AN ELECTRONICS COMPANY CLIMBED TO 6 FROM ITS OFFERING PRICE YESTERDAY OF 5 A SHARE THE INITIAL OFFERING WAS FOR 36 MILLION COMMON SHARES THROUGH UNDERWRITERS LED BY WHALE SECURITIES INC IRVINE APARTMENT COMMUNITIES EASED TO 17 1/4 FROM ITS OFFERING PRICE OF 1750 A SHARE BUT TOPPED THE BIG BOARD'S MOST ACTIVES LIST WITH ABOUT 45 MILLION SHARES THE COMPANY DEVELOPS REAL ESTATE IN CALIFORNIA ON THE LOSING SIDE VENTRITEX SUNNYVALE CALIF PLUNGED 5 3/4 TO 36 1/2 THE WALL STREET JOURNAL REPORTED YESTERDAY THAT COMPANY INSIDERS HAVE BEEN SELLING SHARES AMID A FOOD AND DRUG ADMINISTRATION INVESTIGATION INTO WHETHER THE COMPANY HAS IMPROPERLY PROMOTED THE USE OF ITS CARDIAC DEFIBRILLATOR COTT FELL 1 7/8 TO 27 1/4 AFTER SLIDING 1 3/4 TUESDAY THE STOCK OF THE PRIVATELABEL BEVERAGE COMPANY WITH HEADQUARTERS IN MISSISAUGA ONTARIO CAME UNDER PRESSURE ON NEWS THAT ANALYSTS EXPECT PRICE COMPETITION IN THE CANADIAN SODA MARKET TO HURT COTT'S EARNINGS TYCO TOYS NYSE SANK 1 7/8 TO 8 3/4 FOLLOWING ITS ANNOUNCEMENT THAT IT EXPECTS TO REPORT A FOURTHQUARTER LOSS AND FULLYEAR SALES BELOW THE 769 MILLION REPORTED FOR 1992 THE MOUNT LAUREL NJ COMPANY POSTED A LOSS OF 25 CENTS A SHARE IN THE 1992 FOURTH QUARTER ALSO TYCO SAID IT WON'T PAY ITS QUARTERLY DIVIDEND OF 25 CENTS IN JANUARY NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 81 WHILE 40 ISSUES HIT NEW LOWS 9312020086 931202 INTERNATIONAL BRIEF BOMBARDIER INC SA EXPRESS ORDERS 12 PLANES FROM DE HAVILLAND INC UNIT BOMBARDIER INC SAID SA EXPRESS A NEW SOUTH AFRICAN REGIONAL AIRLINE ORDERED 12 TURBOPROP AIRCRAFT FROM BOMBARDIER'S DE HAVILLAND INC UNIT FOR ABOUT 150 MILLION THE JOHANNESBURGBASED CARRIER ALSO TOOK OPTIONS ON SIX MORE OF THE 50PASSENGER DASH 8 SERIES 300B AIRCRAFT DELIVERIES OF THE INITIAL 12 PLANES ARE TO RUN FROM EARLY 1994 THROUGH EARLY 1995 SA EXPRESS IS 51 OWNED BY A CONSORTIUM OF BLACK SOUTH AFRICAN BUSINESSES AND 49 BY A CANADIAN GROUP A BOMBARDIER SPOKESMAN SAID BOMBARDIER IS A MONTREALBASED TRANSPORTATION EQUIPMENT MAKER 9312020085 931202 MARKETING & MEDIA ADVERTISING SPY SERVICE TO TRANSPORT RIVAL ADS ON TV FOR LICKETYSPLIT RESPONSE BY KEVIN GOLDMAN BIG BROTHER HAS HIT MADISON AVENUE A NEW SERVICE THAT ALLOWS A COMPANY TO SCREEN ITS COMPETITOR'S COMMERCIALS WITHIN 36 TO 48 HOURS AFTER THE ADS RUN ON TELEVISION ACROSS THE COUNTRY IS QUIETLY BEING TESTED BY A FEW OF THE NATION'S LARGEST ADVERTISERS THE SERVICE COMPETITIVE MEDIA ALERT IS FROM COMPETITIVE MEDIA REPORTING A NEW YORK JOINT VENTURE BETWEEN ARBITRON AND VNU A DUTCH PUBLISHING COMPANY IT'S BEING TESTED FREE OF CHARGE BY COCACOLA AMERICAN TELEPHONE & TELEGRAPH AND BUSCH MEDIA A UNIT OF ANHEUSERBUSCH COMPETITIVE MEDIA REPORTING IS ALSO NEGOTIATING WITH INTERNATIONAL BUSINESS MACHINES AND EXPECTS TO COMPLETE A DEAL SHORTLY COMPANIES PARTICIPATING IN THE TWOMONTH TRIAL SHARE ONE SIMILARITY THEY ARE ALL IN CUTTHROAT COMPETITION WITH THEIR MAJOR RIVALS THESE WARS FOUGHT HEAVILY ON THE ADVERTISING FRONT DEPLOY AGGRESSIVE ADS AND EVEN MORE AGGRESSIVE RESPONSE ADS AS THE MAIN WEAPONS MORE SO THAN EVER BEFORE RAPID ADVERTISING RESPONSE IS THE KEY ACCORDING TO AD EXECUTIVES THAT'S ONE REASON AT&T MOVED A LARGE BLOCK OF ITS 200 MILLION CONSUMER ADVERTISING ACCOUNT LAST MONTH FROM THE AYER AGENCY TO FCB/LEBER KATZ PARTNERS AT&T EXECUTIVES HAD COMPLAINED ABOUT THE SLOW RESPONSE THIS YEAR TO MCI COMMUNICATION'S FRIENDS & FAMILY PLAN VOWING NEVER AGAIN THE NEW SPY SERVICE WHICH IS EXPECTED TO BE ANNOUNCED TODAY AT THE ADVERTISING RESEARCH FOUNDATION CONVENTION IN NEW YORK WILL PROVIDE ADVERTISERS AND THEIR AGENCIES WITH BRAND NEW TELEVISION COMMERCIALS COMPLETE WITH SOUND ON A PERSONAL COMPUTER THE ADS WILL BE CULLED FROM THE NATION'S TOP 75 MARKETS ALONG WITH EACH SPOT THE SERVICE WILL PROVIDE SUBSCRIBERS WITH ESTIMATES OF HOW MUCH IT'S COSTING TO RUN THE AD IF THE TEST WORKS AND COMPETITIVE MEDIA ALERT CLICKS IT IS EXPECTED TO BE A HIGHTECH THORN IN THE SIDE OF RIVAL ADTRACKING COMPANIES PRIMARILY NIELSEN MEDIA RESEARCH THE RATIONALE FOR SUCH A SERVICE WHICH COMPETITIVE MEDIA ALERT CONCEDES WILL BE EXPENSIVE IS SIMPLE IT HAS BEEN VERY DIFFICULT IF NOT IMPOSSIBLE TO KNOW WHAT THE COMPETITION IS DOING IN REGIONAL PROMOTIONS AND ADVERTISING IN EVERY MAJOR US CITY THEREFORE A COMPANY IS FORCED TO BE SLOW IN RESPONDING TO RIVAL ADVERTISING THIS PRODUCT WILL REVOLUTIONIZE THE ABILITY OF ADVERTISERS TO DESIGN IMMEDIATE STRATEGIC RESPONSES SAYS JEFF HALE PRESIDENT OF COMPETITIVE MEDIA REPORTING SOME ADTRACKING SERVICES TAKE UP TO THREE WEEKS TO GATHER DATA AND TELL CLIENTS WHAT THE COMPETITION IS UP TO IN VARIOUS POCKETS OF THE COUNTRY BUT IT'S UNCERTAIN HOW MANY ADVERTISERS WILL BE WILLING TO SPEND HUGE SUMS ON SUCH A SERVICE AT A TIME WHEN AD BUDGETS ARE BEING SQUEEZED SURPRISINGLY THE OUTLOOK LOOKS POSITIVE EVEN COMPETITIVE MEDIA ALERT'S MAIN RIVAL MONITOR PLUS A SERVICE OF NIELSEN MEDIA RESEARCH A UNIT OF DUN & BRADSTREET ADMITS ITS CLIENTS INCLUDING 250 ADVERTISERS WANT SUCH A PRODUCT OUR CLIENTS HAVE ASKED US ABOUT QUICK TURNAROUNDS SO WE KNOW THERE IS A NEED FOR IT SAYS KRYA KOURY VICE PRESIDENT AND DIRECTOR OF MONITOR PLUS CURRENTLY SAYS MS KOURY MONITOR PLUS DELIVERS A CREATIVE DESCRIPTION AND IF ORDERED A VIDEOTAPE OF THE COMPETITOR'S COMMERCIAL BUT THAT PROCESS TAKES 14 TO 21 DAYS MS KOURY SAYS NIELSEN IS STUDYING THE DEVELOPMENT OF A SERVICE SIMILAR TO COMPETITIVE MEDIA ALERT BUT THE COST TO CUSTOMERS IS A CONCERN MR HALE CONCEDES THE SERVICE IS EXPENSIVE ALTHOUGH HE DECLINES TO BE SPECIFIC INDUSTRY EXECUTIVES SAY THE COST TO A COMPANY WILL BE BASED ON THE ANNUAL AD SPENDING IN THAT ADVERTISER'S PRODUCT CATEGORY THE SERVICE THE COMPANY CONCEDES IS TOO EXPENSIVE FOR AD AGENCIES TO AFFORD ALTHOUGH A SUPPLEMENTAL COPY OF A RIVAL COMMERCIAL COULD BE SENT TO THE AGENCY A RECENT RUNTHROUGH OF COMPETITIVE MEDIA ALERT SHOWED HOW IT PROVED USEFUL TO COCACOLA UPON SCANNING A MENU OF COMMERCIALS THE COMPUTER PROGRAM STOPS AT SOMETHING AFOOT IN CLEVELAND TWO NIGHTS EARLIER IT SEEMS PEPSICO AIRED A NEW SPOT STARRING TALK SHOW HOST REGIS PHILBIN THE COMMERCIAL THEN APPEARED ON THE COMPUTER SCREEN ALBEIT A TAD JERKY SINCE ONE FRAME EVERY FOUR SECONDS IS CAPTURED AND MR PHILBIN WHOSE UNMISTAKABLE VOICE COMES THROUGH A VOICEBOX IS TALKING ABOUT A NEW PROMOTION A SPOKESMAN FOR COKE IN ATLANTA SAYS THE COMPANY DOESN'T DISCUSS THE SPECIFICS OF OUR RESEARCH EFFORTS A SPOKESMAN FOR ANHEUSERBUSCH CONFIRMS THE COMPANY IS PARTICIPATING IN THE TEST AND AT&T SAYS OBVIOUSLY WE MONITOR THE ACTIVITIES OF OUR COMPETITORS AND USE A VARIETY OF MEANS TO DO SO WE'RE NOT GOING TO GET INTO SPECIFICS OF AD TRACKING FIRMS WE MIGHT BE HAVING DISCUSSIONS WITH COMPETITIVE MEDIA ALERT HOPES TO IRON OUT THE BUGS AFTER RECEIVING COMMENTS FROM THE COMPANIES PARTICIPATING IN THE TEST AND ITS GOAL IS TO TURN AROUND ADS WITHIN 24 HOURS MAKING THE CURRENT DAYANDAHALF TO TWODAY RESPONSE DOWNRIGHT SLUGGISH THERE IS NO GETTING AWAY NO HIDING FROM THIS SAYS MR HALE OUR COMPUTER SYSTEM IS SET TO IDENTIFY WHETHER A COMMERCIAL ALREADY RAN AND THEN WE CAPTURE IT DIGITALLY THAT'S HOW WE CAN GET THE COMMERCIAL OUT SO QUICKLY COMPETITIVE MEDIA ALERT WILL MONITOR TV STATIONS FROM 6 AM THROUGH 1 AM THERE IS ONLY ONE WAY TO ESCAPE IT IF SAY PEPSI REALLY WANTS TO KEEP ITS LATEST REGIONAL AD CAMPAIGN A SECRET FROM COKE IT COULD AIR THE SPOTS IN THE WEE HOURS OF THE MORNING FINGERHUT FINGERHUT COS A DIRECT MARKETING COMPANY SAID ITS TELEVISION UNIT USA DIRECT INC WILL BECOME A STANDALONE SEPARATELY MANAGED COMPANY IN EARLY 1994 FINGERHUT BASED IN MINNEAPOLIS SAID IT WOULD PURSUE ADDITIONAL AVENUES IN ELECTRONIC RETAILING INCLUDING THE POSSIBILITY OF A HOMESHOPPING CHANNEL BUT TED DEIKEL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FINGERHUT SAID IN AN INTERVIEW THAT THE COMPANY IS IN THE MIDST OF DISCUSSIONS WITH DISTRIBUTORS ABOUT CARRYING THE HOMESHOPPING CHANNEL WE'LL KNOW WITHIN A SHORT PERIOD OF TIME WHETHER WE'LL BE IN THE 24HOUR SHOPPING OR WE WON'T SCHWEPPES CADBURY BEVERAGES INC A UNIT OF CADBURY SCHWEPPES PLC SAID IT IS TERMINATING ITS RELATIONSHIP WITH ACTOR JOHN CLEESE ITS SPOKESMAN FOR FOUR YEARS THE MOVE COMES APPROXIMATELY TWO MONTHS AFTER CADBURY BEVERAGES CONSOLIDATED ADVERTISING FOR ITS SCHWEPPES AND CRUSH SODA BRANDS WITH FOOTE CONE & BELDING COMMUNICATIONS CHICAGO THE AGENCY THAT HANDLES CADBURY'S CANADA DRY LINE WE HAVE DEVELOPED A NEW CAMPAIGN DIRECTION THAT'S TESTING EXCEPTIONALLY WELL BUT DOESN'T CALL FOR JOHN'S TALENTS SAID KARL JOHNSON MARKETING EXECUTIVE WITH CADBURY BEVERAGES 9312020084 931202 ECONOMY CALIFORNIA OFFICIAL ORDERS A NEW CUT IN WORKERS' COMPENSATION PREMIUMS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI TOOK YET ANOTHER SWIPE AT THE SKYHIGH COST OF WORKERS' COMPENSATION INSURANCE ORDERING A 127 CUT IN THE MINIMUM PREMIUM PAID BY THE STATE'S EMPLOYERS THE CUTBACK EFFECTIVE JAN 1 COMES ON TOP OF AN EARLIER CUTBACK OF 7 ORDERED BY THE STATE LEGISLATURE IN JULY THE COMMISSIONER'S OFFICE ESTIMATES CONSERVATIVELY THAT THE TWO CUTBACKS WILL YIELD 500 MILLION IN SAVINGS TO CALIFORNIA BUSINESSES NEXT YEAR A SPOKESMAN LATER PREDICTED MR GARAMENDI'S CUTBACK ALONE WOULD LIKELY SAVE THAT MUCH THIS IS CLEAR EVIDENCE OUR WAR ON FRAUD AND THE LEGISLATIVE REFORMS RECENTLY ENACTED WILL GIVE EMPLOYERS ENORMOUS SAVINGS NEXT YEAR MR GARAMENDI SAID IN A STATEMENT MR GARAMENDI SAID THE CUTBACK WAS ENABLED BY HIS OFFICE'S RECENT CRACKDOWN ON WORKERS' COMPENSATION FRAUD AND ABUSE THE CRACKDOWN HE ASSERTS HAS ALREADY REDUCED INSURANCECOMPANY PAYOUTS FOR WORKERS' COMPENSATION CLAIMS BY 1 BILLION THE INSURANCE COMMISSIONER CREDITED HIS AGGRESSIVE PROSECUTION OF WORKERS' COMPENSATION FRAUD CASES ACCOMPANIED BY A SPLASHY BILLBOARD CAMPAIGN WHICH HAS RESULTED IN A QUADRUPLING OF ARRESTS TO ABOUT 80 THIS YEAR OVER THE 1992 LEVEL HE ALSO CITED INCREASED USE OF HEALTH MAINTENANCE ORGANIZATIONS IN THE MEDICAL TREATMENT OF ONTHEJOB INJURIES REDUCTION IN THE VOLUME OF REQUIRED MEDICAL LEGAL REPORTS AND MORESTRINGENT REQUIREMENTS FOR DOCUMENTING CLAIMS OF STRESS AND PSYCHIATRIC INJURY ON THE JOB FORMERLY A WORKER WHO CLAIMED WORKERS' COMPENSATION FOR STRESS INJURY ONLY HAD TO PROVE 10 OF HIS DISABILITY WAS WORKRELATED NOW UNDER RECENT LEGISLATION SPONSORED BY MR GARAMENDI WORKERS MUST PROVE THE ALLEGED INJURY RESULTED FROM ONTHEJOB INCIDENTS BY A PREPONDERANCE OF EVIDENCE DEFINED AS BEING AT LEAST 51 SAID DANIEL MARSHALL AN ATTORNEY FOR THE STATE DEPARTMENT OF INSURANCE YOU CAN'T SIMPLY SAY I WAS BUMMED OUT THAT I COULDN'T FIND WORK FOR A FEW WEEKS' MR GARAMENDI'S SPOKESMAN ADDED BUSINESS PEOPLE IN THE STATE WHILE EAGER FOR SUCH RELIEF ARE RESERVING JUDGMENT ON THE PROBABLE SUCCESS OF MR GARAMENDI'S LATEST INITIATIVE I'M HOPING IT HELPS BUT I CAN'T ANSWER YOU YET SAID HARVEY GERSHENSON PRESIDENT OF STERLING CLEANERS A DRYCLEANING COMPANY IN WESTWOOD CALIF AFTER BEING HIT WITH WHAT HE SAID WERE THREE YEARS OF UNJUSTIFIED WORKERS' COMP CLAIMS MR GERSHENSON SAID HE WATCHED HIS PREMIUMS GO TO ABOUT 190000 THIS YEAR FROM 130000 LAST YEAR WE HAD TO LAY OFF A MAN WHO HAD WORKED FOR US FOR 14 YEARS IN ORDER TO PAY THIS PREMIUM SAID MR GERSHENSON OF HIS 75EMPLOYEE OPERATION IF IT WEREN'T FOR THE STATE INSURANCE DEPARTMENT WE'D HAVE HAD TO LAY OFF TWO MORE PEOPLE WHETHER MR GARAMENDI'S NEW SAVING MANDATE SUCCEEDS HE ADDED DEPENDS UPON WHETHER THE ORDER HAS ENFORCEMENT TEETH HOWEVER A MAJOR INSURANCEINDUSTRY TRADE GROUP BLASTED MR GARAMENDI'S ORDER WE BELIEVE THE COMMISSIONER HAS EXCEEDED HIS AUTHORITY SAID THOMAS F CONNEELY PRESIDENT OF THE ASSOCIATION OF CALIFORNIA INSURANCE COMPANIES MR CONNEELY SAID HE WAS DELIGHTED THE COMMISSIONER CREDITED AN ANTIFRAUD CAMPAIGN IN WHICH HIS INDUSTRY HAD PLAYED A MAJOR ROLE BUT WE'RE CONCERNED HE'S ANTICIPATING SAVINGS FROM THE NEW LAWS WHICH MAY NOT MATERIALIZE THIS COULD LEAD TO RATES THAT MAY NOT PROVE TO BE ADEQUATE HE ADDED 9312020083 931202 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 3/16 HIGH 3 LOW 3 1/16 NEAR CLOSING BID 3 1/8 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 43 DAYS 335 44 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 345 60 DAYS 344 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 273 TWO MONTHS 273 THREE MONTHS 281 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 342 SIX MONTHS BANKERS ACCEPTANCES 335 30 DAYS 328 60 DAYS 329 90 DAYS 330 120 DAYS 331 150 DAYS 332 180 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 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 9/16 ONE MONTH 3 1/2 THREE MONTHS 3 9/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 625 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 712 60 DAYS 717 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 713 60 DAYS 723 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 9312020082 931202 WHO'S NEWS PHELPS DODGE CORP PHELPS DODGE CORP PHOENIX ROBERT N BURT WAS ELECTED A DIRECTOR OF THIS MINING AND MANUFACTURING CONCERN INCREASING THE BOARD'S SIZE TO 12 MEMBERS MR BURT 56 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FMC CORP A CHICAGO PRODUCER OF CHEMICALS AND MACHINERY 9312020081 931202 WANTED A NATIONAL DRUG STRATEGY BY ROBERT C BONNER THE US HAS MADE CONSIDERABLE PROGRESS IN CONFRONTING THE DRUG PROBLEM SINCE IT REACHED EPIDEMIC PROPORTIONS IN THE MID1980S THE NUMBER OF REGULAR USERS OF COCAINE HAS DECLINED TO JUST 13 MILLION IN 1992 FROM NEARLY SIX MILLION IN 1985 BUT INTEREST IN COMBATING DRUGS BEGAN TO FADE AROUND 1991 ILLEGAL DRUG USE WAS A NONISSUE IN THE 1992 PRESIDENTIAL CAMPAIGN SINCE PRESIDENT CLINTON'S ELECTION THE ISSUE OF ILLEGAL DRUGS SEEMS TO HAVE DROPPED FROM THE PRESIDENT'S SCREEN ENTIRELY THE ADMINISTRATION TOOK ALMOST A YEAR TO ISSUE AN INTERIM DRUG STRATEGY THAT IDENTIFIES NO SHIFTS IN DRUGCONTROL RESOURCES AND FAILS TO DIRECT ANYONE TO DO ANYTHING THE INTERIM STRATEGY PREMATURELY DECLARES VICTORY AGAINST CASUAL DRUG USE AND GIVES TOP PRIORITY TO EXPANDED TREATMENT OF HARDCORE DRUG ADDICTS BUT THE BENEFITS OF EXPANDING FUNDS FOR DRUG TREATMENT PROGRAMS ARE BEING OVERSOLD DIVERTING LAW ENFORCEMENT RESOURCES TO TREATMENT IS A FEELGOOD SOLUTION TO THE DRUG PROBLEM THAT DOES NOT ADDRESS THE HARD ISSUES COCAINE REMAINS THE PRIMARY ILLEGAL DRUG THREAT TO THE US YET THE PROPONENTS OF INCREASED DRUGTREATMENT FUNDING RARELY MENTION THAT NO REASONABLY EFFECTIVE TREATMENT FOR COCAINE AND CRACK ADDICTION EXISTS THE BEST TREATMENT PROGRAMS REPORT SURPRISINGLY LOW LEVELS OF EFFECTIVENESS WE SHOULD PROCEED CAUTIOUSLY BEFORE DUMPING MORE TAX DOLLARS INTO THESE PROGRAMS MOREOVER A DISPROPORTIONATE FOCUS ON HARDCORE ADDICTS IGNORES POTENTIAL NEW AND REGULAR DRUG USERS WHO ARE IN THE PIPELINE TO ADDICTION TREATMENT PROGRAMS DO NOT REACH THESE INDIVIDUALS CONSTRICTING THIS PIPELINE OF FUTURE ADDICTS IS EQUALLY IF NOT MORE IMPORTANT THAN GETTING CURRENT HARDCORE USERS OFF DRUGS EDUCATION PUBLIC AWARENESS AND LAW ENFORCEMENT PROGRAMS THAT MAKE ILLEGAL DRUGS HARDER TO GET MORE EXPENSIVE AND LESS PURE HELP PROTECT ATRISK POPULATIONS FROM BECOMING ADDICTS WE CANNOT AFFORD TO DIVERT RESOURCES FROM THESE CRITICAL TASKS TO PURSUE LESS EFFECTIVE SHORTTERM OBJECTIVES UNFORTUNATELY THE YEAR OF VIRTUAL SILENCE BY THE ADMINISTRATION ON THE DRUG ISSUE HAS ALREADY HAD A NUMBER OF NEGATIVE CONSEQUENCES WHILE THE ADMINISTRATION DAWDLED OVER ITS SELECTION OF A NEW DRUG CZAR CONGRESS WENT ON A SERIES OF BUDGETARY RAIDING PARTIES OVER THE SUMMER VARIOUS CONGRESSIONAL COMMITTEES DISMEMBERED THE 1994 FEDERAL DRUG CONTROL BUDGET RESULTING FOR EXAMPLE IN A 33 CUT IN FOREIGN COUNTERNARCOTICS ASSISTANCE FUNDS THESE CUTS WILL CAUSE DRUG CONTROL ASSISTANCE TO COLOMBIA TO BE CUT BY AN AVERAGE OF 50 IN THE CURRENT FISCAL YEAR WHILE AID FOR PERU SOURCE OF TWOTHIRDS OF THE WORLD'S COCAINE WILL DROP 60 AS A RESULT DRUG CONTROL EFFORTS IN THE US WILL SUFFER GREATLY THROUGH AT LEAST 1994 IRONICALLY THESE CUTS COME JUST AS THE SHINING PATH TERRORISTS ARE IN RETREAT AND REAL DRUG CONTROL PROGRESS IN PERU FINALLY APPEARS POSSIBLE SIMILARLY THE CUTS SEND A CRUEL MESSAGE TO THE PEOPLE OF COLOMBIA WHO HAVE BRAVELY TAKEN ON THE COCAINE CARTELS THERE DESPITE HUGE POLICE AND CIVILIAN CASUALTIES THE ADMINISTRATION'S LACK OF ATTENTION TO THE DRUG ISSUE HAS ALSO SOFTENED SOCIAL DISAPPROVAL TOWARD DRUG USE FROM THE MID1980S TO THE EARLY 1990S THE GOVERNMENT SENT A STRONG CLEAR MESSAGE THAT DRUG USE IS ANTISOCIAL DESTRUCTIVE AND INTOLERABLE THIS MESSAGE REACHED HOLLYWOOD TELEVISION THE PRINT MEDIA CLASSROOMS AND ORDINARY HOUSEHOLDS OVER TIME SOCIAL DISAPPROVAL CHANGED ATTITUDES TOWARD DRUG USE AND THE NUMBER OF ILLEGAL DRUG USERS FELL SHARPLY BUT TODAY POPULAR TELEVISION SHOWS LIKE BEAVIS AND BUTTHEAD AND MOVIES LIKE DAZED AND CONFUSED ARE ONCE AGAIN GLAMORIZING DRUG USE AFTER A DECADE OF STEADY DECLINES DRUG USE IS RISING AMONG THOSE MOST VULNERABLE TO MEDIA AND PEER PRESSURE OUR 13 AND 14YEAROLD CHILDREN THE RISING THREAT FROM HEROIN ALSO REQUIRES A FORCEFUL RESPONSE FROM THE PRESIDENT THANKS TO THE LACK OF A COHERENT US DRUG POLICY TOWARD BURMA SINCE THE 1988 COUP INCREASED OPIUM AND HEROIN PRODUCTION IN THAT COUNTRY HAS RESULTED IN THE LARGEST SUPPLY OF HEROIN EVER AVAILABLE IN THE US ALLTIME LOW PRICES FOR HEROIN RISING HEROINRELATED HOSPITAL ADMISSIONS AND HEROIN PURITY LEVELS 10 TIMES HIGHER THAN JUST A DECADE AGO ALL INDICATE A SUBSTANTIAL INCREASE IN THE NUMBER OF HEROIN USERS WHOSE RANKS NOW INCLUDE STUDENTS AND YOUNG PROFESSIONALS IT IS NOT TOO LATE FOR PRESIDENTIAL LEADERSHIP MR CLINTON SHOULD BREAK HIS SILENCE ON THE DRUG ISSUE FORCEFUL PUBLIC STATEMENTS AN APPEAL TO THE ENTERTAINMENT INDUSTRY TO EXERCISE RESPONSIBILITY AND A SUSTAINED PUBLIC AWARENESS CAMPAIGN CAN HELP STEM THE RISING TIDE OF ILLEGAL DRUG USE HERE'S WHAT HE SHOULD DO RESTORE BIPARTISAN SUPPORT FOR FEDERAL DRUG CONTROL ONAGAIN OFFAGAIN POLICIES HAVE SERIOUSLY HAMPERED DRUG LAW ENFORCEMENT EFFORTS FOR EXAMPLE IN 1991 THENPRESIDENT BUSH'S BUDGET FOR THE DRUG ENFORCEMENT ADMINISTRATION BOOSTED THE NUMBER OF DEA AGENTS BY 500 A 15 INCREASE IN 1994 MR CLINTON'S BUDGET WILL FORCE DEA TO REDUCE ITS AGENT WORK FORCE BY APPROXIMATELY THE SAME NUMBER SUCH HOTANDCOLD POLICIES ARE COUNTERPRODUCTIVE WHAT IS NEEDED IS A BIPARTISAN COMMITMENT TO SUSTAINED STRONG FEDERAL DRUG ENFORCEMENT INVEST IN DRUG TREATMENT RESEARCH MOST DRUG TREATMENT PROGRAMS ARE NOT COSTEFFECTIVE AND NEW TREATMENT TECHNIQUES ARE NEEDED FUNDING FOR RESEARCH MUST BE INCREASED USE THE CRIMINAL JUSTICE SYSTEM TO COERCE TREATMENT MOST DRUG ADDICTS CRAVE DRUGS NOT DRUG TREATMENT MORE ADDICTS ARE DIRECTED INTO TREATMENT BY THE CRIMINAL JUSTICE SYSTEM THAN VOLUNTARILY SEEK TREATMENT WHAT IS NEEDED ARE NEW AND EXPANDED WAYS TO USE THE CRIMINAL JUSTICE SYSTEM TO FORCE DRUG USERS INTO TREATMENT INTERDICTION ALONE IS NOT EFFECTIVE INTERDICTION AS A STANDALONE DRUG CONTROL STRATEGY IS FUTILE INTERDICTION EFFORTS MERELY SEIZE DRUGS THE DRUG TRAFFICKING ORGANIZATIONS SURVIVE INTACT HIGH PROFIT MARGINS MAKE IT A SIMPLE MATTER FOR THEM TO REPLACE LOST INVENTORY GO AFTER THE KINGPINS TO BE SUCCESSFUL OUR STRATEGY MUST REDUCE THE CARTELS' CAPACITY TO PRODUCE AND DISTRIBUTE COCAINE BY INCARCERATING THEIR LEADERS SEIZING THEIR ASSETS AND WORKING CAPITAL CONFISCATING THEIR FINANCIAL RECORDS AND OTHERWISE DISRUPTING THEIR OPERATIONS THIS IS DEA'S KINGPIN STRATEGY WHICH REQUIRES A MODEST BUT SUSTAINED US INVESTMENT IN STRENGTHENING COOPERATIVE DRUG ENFORCEMENT AND PROFESSIONALIZING POLICE AND CRIMINAL JUSTICE INSTITUTIONS IN THE ANDEAN NATIONS THE KINGPIN STRATEGY CAN REDUCE THE AMOUNT OF COCAINE THAT REACHES THE US IN 1990 AND 1992 LAW ENFORCEMENT ACTION AGAINST THE CARTELS REDUCED US COCAINE SUPPLIES RESULTING IN THE FIRST INCREASES EVER IN THE US WHOLESALE PRICE OF COCAINE IF SUSTAINED AND SUPPORTED SUCH ACTIONS WILL SHARPLY REDUCE THE AMOUNT OF COCAINE AVAILABLE IN THE US WE WOULD NEVER ALLOW 23 AUTONOMOUS COMMANDERS IN CHIEF TO TAKE OUR NATION TO WAR YET WE LACK A UNITED COMMAND OVER THE FRAGMENTED FEDERAL COUNTERNARCOTICS RESOURCES THE IMPLEMENTATION OF FEDERAL DRUG ENFORCEMENT POLICY BY COMMITTEE HAS OFTEN RESULTED IN BUREAUCRATIC OBSTRUCTION STALEMATES AND INEFFECTUAL LOWESTCOMMONDENOMINATOR POLICIES ALTHOUGH THE DRUG CZAR'S OFFICE SETS OVERALL DRUG ENFORCEMENT POLICY NO ONE IS IN CHARGE OF IMPLEMENTING THAT POLICY THE DRUG CZAR HAS NEVER IMPLEMENTED POLICY AND WITH A REDUCED STAFF OF 25 CANNOT POSSIBLY DO SO NOW BESIDES THE DRUG CZAR'S OFFICE IS NO MORE OPERATIONAL NOR SHOULD IT BE THAN THE NATIONAL SECURITY COUNCIL IN THE SHORT TERM A SUCCESSFUL FIGHT AGAINST DRUGS DEMANDS THE CONSOLIDATION OF FEDERAL RESOURCES IN A SINGLEMISSION DRUG ENFORCEMENT AGENCY MORE DIRECT LINES OF AUTHORITY AND STRATEGIES THAT ADDRESS THE REALITIES OF TODAY'S DRUG ENVIRONMENT FROM DOMESTIC TREATMENT TO INTERNATIONAL TRADE BUT LONGTERM SUCCESS IS ULTIMATELY DEPENDENT UPON CHANGING ATTITUDES TOWARD AND REDUCING DEMAND FOR ILLEGAL DRUGS THE LAST DECADE HIGHLIGHTS THE STRIDES THAT WERE MADE IN THIS DIRECTION BUT THE RECENT SILENCE FROM WASHINGTON THREATENS THIS PROGRESS IF MR CLINTON IS AS SERIOUS AS HE CLAIMS TO BE ABOUT CONFRONTING AMERICA'S DOMESTIC ILLS THE TIME IS NOW FOR HIM TO MATCH HIS RHETORIC WITH ACTION MR BONNER A FORMER FEDERAL JUDGE HEADED THE DRUG ENFORCEMENT ADMINISTRATION FROM 1990 TO OCTOBER 1993 9312020080 931202 MARKETING & MEDIA CBS IS EXPECTED TO WIN FALL SWEEPS' ITS FIRST VICTORY IN PERIOD SINCE 1984 BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS INC IS EXPECTED TO EDGE OUT ABC AS THE WINNER OF THE NOVEMBER SWEEPS ITS FIRST WIN OF THIS CRUCIAL NETWORK RATINGS PERIOD SINCE 1984 FINAL RESULTS OF THE SWEEPS COME OUT TODAY A WIN WOULD BE A BOON TO CBS'S 200PLUS AFFILIATE STATIONS WHICH USE THE QUARTERLY SWEEPS RATINGS TO SET AD RATES FOR SEVERAL MONTHS A WIN ALSO WOULD GIVE THE NETWORK A MORALE BOOST AS IT ATTEMPTS TO MAINTAIN ITS THREESEASON RATINGS LEADERSHIP IN THE FACE OF STRONG COMPETITION FROM ABC WHILE ABC A UNIT OF CAPITAL CITIES/ABC INC WILL LIKELY FINISH SECOND IN THE NOVEMBER RATINGS PERIOD IT IS NIPPING AT CBS'S HEELS IN THE SEASONTODATE HOUSEHOLD VIEWERSHIP RATINGS SEASONTODATE SEPT 20 THROUGH THIS PAST SUNDAY CBS WAS DRAWING 132 OF THE NATION'S 942 MILLION TV HOMES TO ABC'S 128 THAT IS THE CLOSEST ABC HAS FOUND ITSELF TO THE FRONTRUNNER DURING THIS PART OF THE FALL SEASON SINCE 1981 GENERAL ELECTRIC CO UNIT NBC MEANWHILE IS RUNNING THIRD THIS SEASON WITH 114 OF HOUSEHOLDS AND WILL FINISH THIRD IN THE NOVEMBER SWEEPS AS WELL YESTERDAY CBS SENIOR VICE PRESIDENT DAVID POLTRACK PREDICTED CBS WOULD FINISH NOVEMBER WITH 13 OF HOUSEHOLDS UP 2 FROM A YEAR AGO HE PREDICTED ABC WILL FINISH THE PERIOD WITH 127 DOWN 5 FROM LAST YEAR WHEN IT FINISHED FIRST NBC WILL LIKELY FINISH WITH 121 OF HOUSEHOLDS UP 3 NEWS CORP'S FOX NETWORK WHICH PROGRAMS 15 HOURS IN PRIMETIME TO THE OTHER NETWORKS' 22 HOURS IS EXPECTED TO FINISH AT 75 OFF 9 FROM A YEAR AGO THIS YEAR FOX IS AIRING SHOWS SEVEN NIGHTS A WEEK UP FROM FIVE NIGHTS A WEEK LAST YEAR COMBINED THE THREE NETWORKS ARE EXPECTED TO FINISH OFF 01 OF A RATING POINT COMPARED WITH A YEAR AGO INDICATING THE BROADCASTERS ARE JUST HOLDING THEIR OWN AGAINST COMPETITION FROM CABLE ABC WON THE NOVEMBER SWEEPS LAST YEAR THANKS TO A MINISERIES THE JACKSONS AND THIS YEAR LOST BECAUSE OF ITS MINISERIES JFK RECKLESS YOUTH WHICH BOMBED YOU LIVE BY THE MINISERIES AND DIE BY THE MINISERIES SAID LARRY HYAMS ABC'S VICE PRESIDENT OF AUDIENCE ANALYSIS IN ADDITION HE SAID TWO OF THE 15LOWEST MONDAY NIGHT FOOTBALL GAMES IN HISTORY CAME DURING NOVEMBER WITH ONE NIGHT TO GO IN THE KEY ADVERTISERSOUGHT DEMOGRAPHIC OF ADULTS 18TO49 NBC AND ABC WERE ABOUT TIED WITH CBS THIRD NBC LED CLEARLY IN WOMEN 1849 UP 8 FROM A YEAR AGO WHILE ABC AND CBS WERE VIRTUALLY TIED WITH A GAIN FOR CBS AND A DROP FOR ABC FROM A YEAR EARLIER FOR MEN 1849 ABC WAS THE CLEAR LEADER BUT STILL OFF FROM A YEAR AGO WITH CBS AND NBC TOO CLOSE TO CALL FOX IS OFF IN BOTH MEN AND WOMEN IN THE 18TO49 GROUP 9312020079 931202 BUSINESS BRIEF NORANDA FOREST INC FIRM SETS AFTERTAX CHARGE IN 4TH PERIOD OF 562 MILLION NORANDA FOREST INC SAID IT WILL TAKE AN AFTERTAX CHARGE OF 75 MILLION CANADIAN DOLLARS US562 MILLION IN THE FOURTH QUARTER TO WRITE OFF THE VALUE OF ITS ATHOLVILLE NEW BRUNSWICK PULP MILL CLOSED SINCE LATE 1991 A SPOKESMAN FOR THE TORONTO FORESTPRODUCTS COMPANY SAID REOPENING THE BLEACHEDSULFITE PULP MILL WOULD HAVE REQUIRED ENVIRONMENTAL AND OTHER CAPITAL SPENDING WOODPULP PRICES HAVE BEEN DEPRESSED BY A GLOBAL SUPPLY GLUT THAT ISN'T EXPECTED TO END SOON NORANDA FOREST IS MAJORITYOWNED BY NORANDA INC A TORONTO NATURALRESOURCES COMPANY BUT NORANDA FOREST TRADES SEPARATELY ON THE TORONTO STOCK EXCHANGE FOR THE NINE MONTHS ENDED SEPT 30 NORANDA FOREST HAD A LOSS OF C42 MILLION OR 38 CANADIAN CENTS A SHARE ON SALES OF C114 BILLION 9312020077 931202 WHO'S NEWS ALLIEDSIGNAL INC ALLIEDSIGNAL INC MORRISTOWN NJ J THOMAS ZUSI 50 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR THE ALLIEDSIGNAL AEROSPACE UNIT OF THIS AEROSPACE AUTOMOTIVEPRODUCTS AND ADVANCEDMATERIALS COMPANY MR ZUSI SUCCEEDS PAUL J HOEDEMAN 38 WHO WAS NAMED VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF AEROSPACE OPERATIONS G PETER D'ALOIA 48 WAS NAMED VICE PRESIDENT AND CORPORATE CONTROLLER SUCCEEDING MR ZUSI NANCY A GARVEY 43 WAS NAMED TO SUCCEED MR D'ALOIA AS VICE PRESIDENT AND CORPORATE TREASURER SHE CONTINUES AS VICE PRESIDENT FOR INVESTOR RELATIONS RONALD A SINAIKIN 44 CHIEF TAX COUNSEL WAS NAMED VICE PRESIDENT FOR TAX MATTERS THE CHANGES ARE EFFECTIVE FEB 1 9312020076 931202 FORMER BROKER FOR LEHMAN FACES INQUIRY BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL BOCA RATON FLA THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING ALLEGATIONS OF UNAUTHORIZED TRADING AND OTHER INVESTOR ABUSES BY A FORMER STAR BROKER AT LEHMAN BROTHERS INC PEOPLE FAMILIAR WITH THE MATTER SAY THE INVESTIGATION OF THE FORMER BROKER LAWRENCE JAY GREEN STEMS FROM ALLEGATIONS MADE IN AN INTERNAL COMPANY REVIEW THAT MR GREEN TRADED STOCK WARRANTS FOR A CUSTOMER AT PRICES FAR HIGHER THAN THE INVESTMENTS' ACTUAL MARKET VALUE THE PEOPLE SAID THE SEC ALSO IS EXAMINING THE ACTIVITIES OF OTHER BROKERS AT LEHMAN BROTHERS' BOSTON BRANCH OFFICE FOR POSSIBLE WRONGDOING THE PEOPLE SAID MR GREEN WHO WORKED AT LEHMAN AND ITS PREDECESSOR FIRMS FOR 13 YEARS WAS FORCED TO RESIGN IN 1990 WHILE AT LEHMAN THEN PART OF SHEARSON LEHMAN BROTHERS INC THE 39YEAROLD MR GREEN GENERATED ANNUAL BROKERAGE COMMISSIONS EXCEEDING 1 MILLION THE PEOPLE SAID MR GREEN HAS AN UNLISTED PHONE NUMBER ON PARK AVENUE IN NEW YORK AND COULDN'T BE REACHED TO COMMENT EDWARD BRODSKY MR GREEN'S LAWYER SAID HIS CLIENT HASN'T BEEN SUBPOENAED BY THE SEC NOBODY HAS CONTACTED US MR BRODSKY SAID THE INVESTIGATION OF MR GREEN COMES AMID HEIGHTENED SCRUTINY BY THE SEC AND OTHER REGULATORS OF THE ACTIVITIES OF WALL STREET BROKERS AS REPORTED THE SEC HAS LAUNCHED A STUDY INTO WHETHER BROKERAGE FIRMS IGNORE COMPLIANCE PROBLEMS IN HIRING AND RETAINING THEIR BIGGESTPRODUCING BROKERS THE SEC SCRUTINY OF BROKERS WILL BE AMONG THE TOPICS DISCUSSED BY BROKERAGE EXECUTIVES HERE AT THE ANNUAL SECURITIES INDUSTRY ASSOCIATION CONVENTION THE SEC AS IS ITS PRACTICE DECLINED TO CONFIRM OR DENY THE EXISTENCE OF ANY PENDING INVESTIGATIONS BUT WILLIAM MCLUCAS THE SEC'S ENFORCEMENT CHIEF SAID IN AN INTERVIEW THAT EXAMINING THE ACTIVITIES OF BIGPRODUCING BROKERS IS NOW A HIGHER PRIORITY ON BOTH THE REGULATORY AND ENFORCEMENT FRONT AT THE AGENCY WITH RECORD TRADING ACTIVITY BY INVESTORS THERE'S A CONCERN ABOUT THE LEVEL TO WHICH EVERYONE IS PLAYING BY THE RULES AND A FOCUS ON THE EXTENT TO WHICH RETAIL CUSTOMERS CAN SUFFER AT THE HANDS OF BROKERS WHO ARE UNSCRUPULOUS UNSOPHISTICATED OR BOTH MR MCLUCAS SAID THE SEC INQUIRY STEMS FROM AN INTERNAL REVIEW MADE BY SHEARSON LEHMAN IN 1990 IN THE REVIEW THE FIRM SAID MR GREEN ENGAGED IN A SERIES OF TRANSACTIONS INVOLVING AN OVERTHECOUNTER SECURITY SALLIE MAE WARRANTS AT PRICES OF APPROXIMATELY 16 PER SHARE WHEN THE MARKET WAS APPROXIMATELY 10 THE TRANSACTIONS THE SHEARSON LEHMAN REVIEW SAID OCCURRED AS A CROSS TRADE BETWEEN A CLIENT OF MR GREEN'S AND MR GREEN'S WIFE'S ACCOUNT SHEARSON LEHMAN IN A 1990 TERMINATION NOTICE TO REGULATORS SAID THE TRANSACTIONS IN QUESTION WERE JOURNALED INTO MR GREEN'S ACCOUNT AND MR GREEN AGREED TO ASSUME THE LOSSES IN THE TRANSACTION WHICH AMOUNT WAS IN EXCESS OF 400000 MR BRODSKY MR GREEN'S LAWYER SAID THE NATIONAL ASSOCIATION OF SECURITIES DEALERS A SELFREGULATORY BODY LOOKED INTO MR GREEN'S DISPUTED STOCKWARRANT TRADES AND DECIDED THAT NO ACTION WAS WARRANTED AMERICAN EXPRESS CO SOLD ITS SHEARSON SUBSIDIARY TO PRIMERICA CORP IN AUGUST BUT HAS RETAINED ITS LEHMAN BROTHERS TRADING INVESTMENTBANKING AND BROKERAGE UNIT A LEHMAN BROTHERS SPOKESMAN DECLINED TO COMMENT THE SEC ISN'T THE ONLY REGULATOR LOOKING INTO THE ACTIVITIES OF MR GREEN THE NEW YORK STOCK EXCHANGE'S ENFORCEMENT DIVISION IS INVESTIGATING ALLEGATIONS STEMMING FROM A BIG BOARD ARBITRATION CASE THAT MR GREEN REPEATEDLY MADE UNAUTHORIZED TRADES IN THE ACCOUNT OF DALE PON A NEW YORK ADVERTISING EXECUTIVE MR PON LOST NEARLY 900000 IN HIS BROKERAGE ACCOUNT IN LESS THAN THREE YEARS ACCORDING TO PAPERS FILED WITH ARBITRATORS IN LATE 1992 A BIG BOARD ARBITRATION PANEL AWARDED MR PON ABOUT 15 MILLION KATHLEEN FALCIONI A BIG BOARD STAFF ATTORNEY ON THE CASE DECLINED TO COMMENT AS DID A BIG BOARD SPOKESWOMAN WE HAVE DENIED THAT HE DID ANYTHING WITH RESPECT TO THAT BIG BOARD INVESTIGATION MR BRODSKY MR GREEN'S LAWYER SAID MR GREEN HAS BEEN EMBROILED IN OTHER DISPUTES WITH INVESTORS THE BROKER PAID 25000 AND SHEARSON LEHMAN PAID 175000 TO A FASHION DESIGNER TO SETTLE A 1985 CIVIL SUIT FILED IN A NEW YORK FEDERAL COURT ALLEGING THAT MR GREEN MADE UNSUITABLE AND UNAUTHORIZED TRADES IN THE DESIGNER'S BROKERAGE ACCOUNT ACCORDING TO PAPERS FILED WITH REGULATORS 9312020075 931202 CORRECTIONS & AMPLIFICATIONS RICARDO SALINAS PLIEGO HEAD OF MEXICAN TELEVISION BROADCASTER GRUPO AZTECA SAID THAT LUIS DONALDO COLOSIO THE MEXICAN RULING PARTY'S PRESIDENTIAL CANDIDATE HAD BEEN ATTACKED BY PARTY HARDLINERS FOR BEING TOO DEMOCRATIC MR SALINAS SAID THE HARDLINERS WERE UPSET BECAUSE MR COLOSIO ALLOWED THE OPPOSITION TO WIN THREE GOVERNORSHIPS IN THE YEARS HE WAS THE HEAD OF THE PARTY MR SALINAS ALSO SAID THAT THE RULING PARTY WOULD HAVE USED FRAUD TO WIN THE ELECTIONS IN THE PAST SO THE LOSSES GIVE YOU AN IDEA WHAT COLOSIO IS ALL ABOUT THE COMMENTS FROM GRUPO AZTECA'S MR SALINAS WERE INCORRECTLY ATTRIBUTED TO MEXICAN PRESIDENT CARLOS SALINAS IN AN ARTICLE TUESDAY THE TWO SALINASES AREN'T RELATED COMPUADD CORP EMERGED FROM BANKRUPTCYCOURT PROCEEDINGS IN NOVEMBER A FACT THAT WAS OMITTED FROM AN ARTICLE YESTERDAY ON THE MAILORDER PERSONAL COMPUTER BUSINESS BRISTOLMYERS SQUIBB CO'S CHAIRMAN IS RICHARD L GELB AN ARTICLE YESTERDAY ABOUT MANAGEMENT CHANGES AT THE COMPANY REFERRED TO HIM AS MICHAEL GELB 9312020074 931202 MARKETING & MEDIA MARKETSCAN PRIVATELABEL FIRMS WHIP UP OPTIMISM AS SALES GROW FURTHER BY KATHLEEN DEVENY THE CHEF WAS FRENCH THE POULET SAUTE CHASSEUR SAVORY AND THE CHARDONNAY NEIMAN MARCUS BRAND PRIVATELABEL WINE WAS PERFECTLY APPROPRIATE FOR THE RECENT LUNCHEON SPONSORED BY THE PRIVATE LABEL MANUFACTURERS ASSOCIATION AT THE HOTEL SOFITEL IN CHICAGO TO TOUT THE QUALITY OF STOREBRAND FOODS THE TRADE GROUP HAD THE HOTEL'S EXECUTIVE CHEF CHRISTIAN F GABORIT WHIP UP A MEAL OF LEEK AND POTATO SOUP CHICKEN WITH MUSHROOMS IN TOMATO SAUCE AND NOODLES WITH CHEESE ALL MADE FROM STOREBRAND GOODS EVEN THE MINERAL WATER WAS PRIVATE LABEL IT WAS A GREAT MEAL CROWS RICHARD W WITHERSPOON SENIOR VICE PRESIDENT OF SALES AND MARKETING AT MERICO INC A DALLASBASED UNIT OF ANHEUSERBUSCH COS THAT MAKES PRIVATELABEL FOOD PRODUCTS MR WITHERSPOON CHAIRMAN OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION ADDS THAT THE SOUP WAS CREAMY AND THE CHICKEN DELICIOUS THE BABY CARROTS WERE DRY AND FLAVORLESS HE CONCEDES BUT IT WASN'T THEIR FAULT THAT EBULLIENT TONE IS INCREASINGLY PREVALENT AMONG MANUFACTURERS OF STOREBRAND GOODS AT A TIME WHEN SUCH CONSUMERPRODUCTS MARKETERS AS PHILIP MORRIS COS AND PROCTER & GAMBLE CO ARE SHUTTERING PLANTS AND LAYING OFF WORKERS THE MOOD OF THE 1062 EXHIBITORS FOR A RECENT PRIVATELABEL TRADE SHOW WAS DECIDEDLY UPBEAT I'M GLAD TO BE IN PRIVATE LABEL AND NOT BRANDED GOODS SAYS MICHAEL J JANDERNOA CHAIRMAN OF PERRIGO CO AN ALLEGAN MICH MAKER OF PRIVATELABEL OVERTHECOUNTER DRUGS I THINK THERE'S STILL GREAT ROOM FOR GROWTH INDEED DESPITE BIG MARKETERS' DEFENSIVE MANEUVERS SUPERMARKET SALES OF PRIVATELABEL GOODS CONTINUED TO RISE IN THE THIRD QUARTER FROM A YEAR EARLIER DOLLAR SALES OF PRIVATELABEL GOODS GREW 16 TO 74 BILLION DURING THE 13 WEEKS ENDED OCT 3 WHILE UNIT VOLUME INCREASED 07 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE MEANWHILE TOTAL SUPERMARKET SALES WERE FLAT AND UNIT VOLUME ACTUALLY DECLINED SLIGHTLY PRIVATELABEL PRODUCTS ACCOUNTED FOR 15 OF TOTAL DOLLAR SALES DURING THE QUARTER AND 199 OF ALL ITEMS SOLD IN GROCERY STORES CERTAINLY THE GROWTH OF STORE BRANDS HAS SLOWED SHARPLY FROM THE BOOM YEARS BETWEEN 1988 AND 1992 BUT SALES OF PRIVATELABEL PRODUCTS CONTINUE TO RISE IN CATEGORIES THAT WERE ONCE CONSIDERED BASTIONS OF BRAND LOYALTY SALES OF STOREBRAND SANITARY PROTECTION PRODUCTS FOR EXAMPLE INCREASED 328 DURING THE RECENT QUARTER THAT REPRESENTS A STRIKING SHIFT IN CONSUMER BEHAVIOR CONVENTIONAL WISDOM HAS HELD THAT STORE BRANDS COULD NEVER MAKE A DENT IN THE CATEGORY GIVEN THE PERSONAL NATURE OF THE PRODUCT MARKETERS OF BIG BRANDS CONCEDE THAT PRIVATELABEL FEMININE HYGIENE PRODUCTS ARE MORE READILY AVAILABLE IN SUPERMARKETS BUT ADD THAT THEIR MARKET SHARE REMAINS SMALL EARLIER THIS YEAR PLAYTEX FP GROUP FORMED A JOINT VENTURE WITH CONFAB COS A PRIVATELABEL MANUFACTURER BASED IN WAYNE PA TO MANUFACTURE AND MARKET PRIVATELABEL TAMPONS EXECUTIVES AT CONFAB WHICH ALSO MANUFACTURES PRIVATELABEL SANITARY NAPKINS ATTRIBUTE THE CATEGORY'S GROWTH TO THEIR FOCUS ON NEWPRODUCT DEVELOPMENT ANOTHER EXPLANATION PRIVATELABEL TAMPONS TYPICALLY COST 20 TO 30 LESS THAN THEIR NATIONAL BRANDS WE SPEND A TREMENDOUS AMOUNT OF MONEY ON RESEARCH AND DEVELOPMENT SAYS LEON GALITZIN SENIOR VICE PRESIDENT OF STRATEGIC BUSINESS DEVELOPMENT FOR CONFAB CONSUMERS KNOW THEY NO LONGER HAVE TO PAY MORE FOR BETTER QUALITY MANY STORE OPERATORS IN RECENT YEARS HAVE UPGRADED THEIR OWN WARES GIVING SHOPPERS A GROWING ARRAY OF HIGHERQUALITY PRIVATELABEL PRODUCTS CHEF GABORIT WHO BEGAN HIS CULINARY CAREER AT MAXIM'S RESTAURANT IN PARIS SAYS HE WAS PLEASED WITH THE QUALITY OF THE STOREBRAND GOODS HE FOUND WHILE PERUSING THE AISLES OF NEARBY JEWEL SUPERMARKETS AND DOMINICK'S FINER FOODS AMONG HIS BARGAINS JEWELBRAND GARLIC POWDER AND PRESIDENT'S CHOICE GRATED PARMESAN CHEESE THE TAB FOR INGREDIENTS TO MAKE LUNCH FOR 20 WAS 3891 IF NATIONAL BRANDS HAD BEEN USED THE ASSOCIATION ESTIMATES THE LUNCHEON WOULD HAVE COST 4723 BUSTLING AROUND HIS KITCHEN JUST BEFORE SERVING HIS PRIVATELABEL FEAST MR GABORIT STIRS HIS CHASSEUR SAUCE AND HOISTS A SMALL JAR OF JEWEL BRAND MUSHROOMS PROCLAIMING THEM AS GOOD AS ANY HE HAS USED AFTER POKING A SAUTEED BREAST OF PRESIDENT'S CHOICE CHICKEN WITH HIS FINGER HE LOOKS PLEASED SEE VERY JUICY HE SAYS 9312020073 931202 WHO'S NEWS KATY INDUSTRIES INC KATY INDUSTRIES INC ELGIN ILL JOHN R PRANN 43YEAROLD PRESIDENT OF THIS INDUSTRIAL CONCERN WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING JACOB SALIBA 80 WHO REMAINS CHAIRMAN 9312020072 931202 KENDALL SQUARE DEMOTES 3 TOP OFFICIALS RESTATES ITS REVENUE SHARPLY DOWNWARD BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL WALTHAM MASS KENDALL SQUARE RESEARCH CORP DEMOTED THREE TOP OFFICIALS AS IT REVISED 1992 RESULTS DOWNWARD AND SAID THAT MORE THAN HALF ITS REPORTED REVENUES THIS YEAR WEREN'T LEGITIMATE KENDALL'S MOVES CULMINATED A MONTH OF STARTLING DISCLOSURES THAT HAVE SENT ITS STOCK PLUNGING FROM 2425 IN LATE OCTOBER TO 6875 IN NASDAQ STOCK MARKET TRADING YESTERDAY THE SUPERCOMPUTER MAKER STRIPPED THE CHIEF EXECUTIVE OFFICER TITLE FROM FOUNDER HENRY BURKHARDT WHO REMAINS PRESIDENT IT FORCED KARL WASSMAN III ITS CHIEF FINANCIAL OFFICER AND PETER APPLETON JONES ITS CHIEF SALES EXECUTIVE TO RESIGN AS CORPORATE OFFICERS ALL THREE REMAIN EMPLOYEES AT FULL PAY KENDALL SAID THAT IT EXPECTS TO REPORT REVENUE FOR THE FIRST NINE MONTHS OF ABOUT 106 MILLION LESS THAN HALF OF THE 247 MILLION PREVIOUSLY REPORTED FOR THE FIRST SIX MONTHS IT DIDN'T DISCLOSE ITS LOSSES FOR THE PERIOD THOUGH IT HAS SAID THEY WERE SUBSTANTIAL KENDALL PREVIOUSLY REPORTED SIXMONTH NET INCOME OF 13 MILLION OR 10 CENTS A SHARE ANALYSTS SAID KENDALL APPARENTLY EXAGGERATED REVENUES IN A DESPERATE BATTLE TO LOOK SUCCESSFUL IN THE SUPERCOMPUTER MARKET WHERE SOME 20 SMALL COMPANIES ARE VYING FOR SURVIVAL MANY MANUFACTURERS ARE EAGER TO SEED THEIR COMPUTERS IN LEADING UNIVERSITIES ON FAVORABLE TERMS BUT TYPICALLY DON'T BOOK REVENUE UNLESS THE UNIVERSITIES HAVE RESEARCH GRANTS FROM OUTSIDE SOURCES TO PAY FOR THEM KENDALL ACKNOWLEDGED YESTERDAY THAT IT SOMETIMES RECORDED REVENUE FOR COMPUTERS THAT WERE SHIPPED TO UNIVERSITIES THAT DIDN'T PAY AND HAD NO PROSPECTIVE FUNDING THE COMPANY DIDN'T ASSIGN INDIVIDUAL FAULT FOR THE OVERSTATED REVENUE BUT MR BURKHARDT SAID THAT SERIOUS MISTAKES OCCURRED IN THE OPERATIONS HEADED BY MESSRS WASSMAN AND JONES BOTH THOSE GUYS THOUGHT THEY WERE WORKING HARD FOR THE BEST INTERESTS OF THE COMPANY MESSRS WASSMAN AND JONES COULDN'T BE REACHED FOR COMMENT YESTERDAY WILLIAM I KOCH KENDALL'S CHAIRMAN AND LARGEST SHAREHOLDER WITH ABOUT A 29 STAKE WILL SERVE AS INTERIM CEO WHILE THE COMPANY LOOKS FOR A NEW CEO KENDALL SAID MR KOCH WILL SPEND ABOUT HALF HIS TIME ON KENDALL IN COMING MONTHS DESPITE THE REVELATIONS MR BURKHARDT SAID IN AN INTERVIEW THAT WE'RE QUITE CONFIDENT KENDALL CAN SURVIVE BASED ON HAVING 22 MILLION IN CASH AND CONTINUED FAVORABLE REPORTS BY CUSTOMERS WHO USE ITS COMPUTERS HE SAID THAT KENDALL WILL HAVE TO RAISE ADDITIONAL FUNDS NEXT YEAR AND THAT SHAREHOLDER LITIGATION WILL MAKE THAT A GREATER CHALLENGE SEVERAL SHAREHOLDERS HAVE SUED KENDALL AND ITS DIRECTORS SINCE THE COMPANY ANNOUNCED THE FIRST INDICATIONS OF BAD NEWS IN LATE OCTOBER AND ITS STOCK STARTED TO PLUMMET THE SECURITIES AND EXCHANGE COMMISSION HAS BEGUN AN INVESTIGATION OF THE COMPANY'S DISCLOSURE POLICIES AND OF A SALE BY MR BURKHARDT OF 1 MILLION OF STOCK BEFORE THE BAD NEWS BROKE AND AFTER HE HAD ENDORSED POSITIVE EARNINGS EXPECTATIONS MR BURKHARDT SAID YESTERDAY HE HAD NO KNOWLEDGE OF THE REVENUE REVISIONS WHEN HE SOLD THE STOCK AS FOR ITS 1992 RESULTS KENDALL SAID IT EXPECTS TO RESTATE THEM TO REFLECT REVENUE ACCURATELY IT SAID IT EXPECTS TO REPORT A NET LOSS FOR 1992 OF 172 MILLION FAR WIDER THAN THE LOSS OF 127 MILLION PREVIOUSLY REPORTED IT SAID REVENUE FOR THE YEAR WAS 163 MILLION DOWN FROM 205 MILLION KENDALL ALSO SAID IT'S STILL CONSIDERING WHETHER TO WRITE DOWN ITS 166 MILLION INVENTORY OF KSR1 SUPERCOMPUTERS THE NEW ESTIMATES HAVEN'T BEEN AUDITED BY PRICE WATERHOUSE & CO THE COMPANY'S INDEPENDENT ACCOUNTANT WHICH EARLIER THIS WEEK WITHDREW ITS ENDORSEMENT OF KENDALL'S FINANCIAL REPORTS TERMS OF KENDALL'S SUPERCOMPUTER DELIVERIES WERE OFTEN EXTREMELY ATTRACTIVE TO RESEARCHERS FOR EXAMPLE EDWARD LAZOWSKA CHAIRMAN OF THE DEPARTMENT OF COMPUTER SCIENCE AT THE UNIVERSITY OF WASHINGTON SAID THAT IT HAS TWO KSR1 COMPUTERS WITH A TOTAL OF 60 PROCESSORS HE SAID WE PAID 1 MILLION FOR HALF OF IT AND THE REST WAS A LOAN OF EQUIPMENT AGAINST FUTURE GRANTS HOWEVER KENDALL APPARENTLY TREATED THE ENTIRE SHIPMENT AS A SALE WILLIAM GODDARD A PHYSICIST AT CALIFORNIA INSTITUTE OF TECHNOLOGY SAID HE PAID FOR 32 PROCESSORS IN SEPTEMBER 1992 USING A NATIONAL SCIENCE FOUNDATION GRANT HE LIKED IT SO MUCH THAT LAST SPRING HE WANTED TO DOUBLE THE SIZE OF THE SYSTEM AND APPLIED FOR MORE GRANT MONEY KENDALL SHIPPED HIM THE COMPUTER IMMEDIATELY BUT HE AND KENDALL ARE STILL WAITING FOR THE GRANT AWARD I'M COMMITTED TO BUYING IT HE SAID I AM APPLYING FOR TWO VERY LARGE GRANTS MR BURKHARDT SAID THE PACE OF QUESTIONABLE SALES INCREASED IN THE THIRDQUARTER THE RESULTS FOR WHICH THE COMPANY STILL HASN'T REPORTED FOR THE NINE MONTHS HE SAID WE REVERSED 30 MILLION OUT OF OUR SALES JOURNALS THE TOTAL INCLUDES SHIPMENTS TO UNIVERSITIES THAT DON'T HAVE FUNDING SHIPMENTS TO DISTRIBUTORS THAT DON'T HAVE CUSTOMERS AND SHIPMENTS WHERE PAYMENT IS CONTINGENT ON THE CUSTOMER GETTING UPGRADED MACHINES IN THE FUTURE IN OTHER CASES BADLY WORDED CONTRACTS MEAN KENDALL DOESN'T HAVE ANY ASSURANCE OF PAYMENT YOU HAD SALESMEN DOING DEALS THAT NEVER SHOULD HAVE BEEN DONE HE SAID HOWARD SCHILIT AN AMERICAN UNIVERSITY ACCOUNTING PROFESSOR AND AUTHOR OF THE BOOK FINANCIAL SHENANIGANS SAID I'M ASTOUNDED AT THE NUMBER IN THE REVENUE RESTATEMENT I CAN'T THINK OF OTHER REVENUE RECOGNITION CASES WHERE YOU WIPE OUT MORE THAN HALF THE COMPANY'S REVENUE HE ADDED THAT IN ACCOUNTING SCANDALS ONCE WALL STREET HAS BEEN FOOLED THEY NEVER GIVE MANAGEMENT A SECOND CHANCE MR BURKHARDT SAID THAT KENDALL SQUARE IS CURRENTLY SPENDING 4 MILLION TO 5 MILLION A MONTH ON OPERATIONS AND DOESN'T PLAN LAYOFFS FOR THE COMPANY'S 270 EMPLOYEES ALTHOUGH REAL SALES OF COMPUTERS ARE EXPECTED TO COVER SOME OF THE COSTS HE SAID THE COMPANY WILL NEED NEW FUNDS SOMETIME NEXT YEAR MR KOCH SAID THAT RAISING THE FUNDS WILL BE COMPLICATED BECAUSE THESE LAWSUITS ARE AN UNKNOWN LIABILITY HE SAID HE EXPECTS TO BE ABLE TO SETTLE THE SUITS BECAUSE IF THE COMPANY DOESN'T SURVIVE THE PLAINTIFF'S LAWYERS MIGHT END UP WITH NOTHING MR KOCH SAID THAT HE HAS QUIZZED MR BURKHARDT ABOUT HIS SALE OF 50000 SHARES LAST SUMMER IT WAS NOT THE CLEVEREST MOVE IN THE WORLD IT DOESN'T LOOK GOOD HE SAID HOWEVER HE SAID THE BOARD IS SATISFIED THAT THE SALE WASN'T BASED ON KNOWLEDGE OF BAD NEWS AHEAD AND REFLECTED A GENUINE NEED FOR FUNDS TO REPAIR STORM DAMAGE TO HIS HOUSE ON THE COAST NORTH OF BOSTON AUGUST WAS THE FIRST PERIOD THAT COMPANY OFFICERS WERE ALLOWED TO SELL THE STOCK HE SAID THE SUGGESTION THAT HE BECOME CEO WAS MR BURKHARDT'S HE ADDED THAT MR BURKHARDT COULD BECOME CEO AGAIN IN THE FUTURE MR KOCH WHO CONFOUNDED SKEPTICS WHEN HE WON THE 1992 AMERICA'S CUP YACHT RACE SAID I'VE UNFORTUNATELY HAD A LOT OF EXPERIENCE IN THE PAST WITH CRISIS MANAGEMENT I'VE SURVIVED AND TURNED THOSE INTO SUCCESSES 9312020071 931202 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG FOR ALL THE EXOTIC WAYS PEOPLE ARE URGED TO USE THEIR COMPUTERS THE MOST POPULAR ACTIVITY REMAINS WORD PROCESSING OR AS IT'S KNOWN IN ENGLISH WRITING WORDPROCESSING PROGRAMS ARE STILL THE ONLY REALLY UBIQUITOUS TYPE OF SOFTWARE NOW THE TWO DOMINANT PUBLISHERS OF WORDPROCESSING SOFTWARE WORDPERFECT AND MICROSOFT HAVE RELEASED NEW VERSIONS OF THEIR FLAGSHIP WRITING PROGRAMS FOR PEOPLE WHO OPERATE THEIR IBMCOMPATIBLE COMPUTERS USING MICROSOFT'S WINDOWS GRAPHICAL USER INTERFACE HOW ON EARTH YOU MAY ASK COULD THESE GUYS IMPROVE OR ENHANCE SOMETHING AS WELLDEVELOPED AND BASIC AS WORD PROCESSING THE TWO COMPANIES CHOSE RADICALLY DIFFERENT APPROACHES AND TO MY MIND MICROSOFT'S DESIGN IS A MUCH BETTER BET FOR MAINSTREAM USERS WITH TYPICAL COMPUTER CONFIGURATIONS WHOSE FOCUS IS ON WRITING AND FORMATTING DOCUMENTS MICROSOFT CONCENTRATED THE IMPROVEMENTS IN THE NEW WORD FOR WINDOWS 60 ON WAYS TO SPEED OR ASSIST THE ACTUAL PROCESS OF WRITING BY MAKING THE SOFTWARE ITSELF SMART ENOUGH TO ANTICIPATE AND AUTOMATE FORMERLY MANUAL STEPS FOR INSTANCE WORD 60 CAN AUTOMATICALLY CORRECT WORDS YOU COMMONLY MISSPELL AS YOU TYPE THEM IF YOU CHOOSE WITHOUT FORCING YOU TO RUN A SPELL CHECK AND IT CAN AUTOMATICALLY ANALYZE YOUR DOCUMENT AND FORMAT IT APPROPRIATELY WITH FONTS AND SPACING AND TEXT STYLES THAT MAKE IT LOOK GOOD SO USERS OF THE NEW WORD CAN SPEND LESS TIME PORING THROUGH MANUALS TRYING TO LEARN THE SOFTWARE AND MORE TIME JUST WRITING BY CONTRAST WORDPERFECT THE GRANDDADDY OF THE CATEGORY DID FAR LESS INNOVATIVE WORK ON THE WRITING PROCESS ITSELF INSTEAD IT FELL BACK ON THE OLD TEMPTATION TO LOAD UP ITS NEW WORDPERFECT FOR WINDOWS 60 WITH A HOST OF FEATURES THAT ARE ONLY TENUOUSLY RELATED TO THE PROCESS OF WRITING THE NEW VERSION HAS A COMPLETE SPREADSHEET AND A FULLBLOWN ART PROGRAM INSIDE RATHER THAN WORD'S MOREMODEST FEATURES FOR MAKING TABLES AND SIMPLE DRAWINGS IT ALSO INCLUDES A PROGRAM THAT CAN INDEX ALL THE WORDS IN ALL THE DOCUMENTS ON YOUR HARD DISK AND THEN SEARCH FOR THEM BY WORD IT'S A BIT OF A THROWBACK TO THE EARLIER DAYS OF COMPUTING BEFORE WINDOWS WHEN PEOPLE RARELY USED MULTIPLE PROGRAMS AND INSTEAD LIVED IN A SINGLE PRODUCT THAT CLAIMED TO DO IT ALL EACH OF THESE NEW WORDPERFECT MODULES IS WELL DONE BUT THEY AND OTHER ADDED FEATURES HAVE SWOLLEN THE PROGRAM SO MUCH THAT IT CAN'T RUN ACCEPTABLY ON THE MOST COMMON COMPUTER CONFIGURATION ADVERTISED TODAY ONE WITH A 486 PROCESSOR AND FOUR MEGABYTES OF MEMORY OR 4 MB RAM IN TECHNOTALK WORDPERFECT PRESS RELEASES RECOMMEND SIX MEGABYTES FOR THE PROGRAM TO RUN SMOOTHLY BUT THE MANUAL CALLS FOR EIGHT MEGABYTES EITHER WAY THE PACKAGE REQUIRES OWNERS OF MANY TYPICAL NEW MACHINES TO BUY EXTRA MEMORY WHAT'S MORE IT REQUIRES AT LEAST 10 MEGABYTES OF SPACE ON YOUR HARD DISK FOR A BARE MINIMUM OF FEATURES AND A WHOPPING 31 MEGABYTES TO INSTALL THE WHOLE THING MICROSOFT'S NEW WORD FOR WINDOWS ISN'T SLENDER EITHER BUT IT'S SVELTE BY COMPARISON IT RUNS ACCEPTABLY IN THE STANDARD FOUR MEGABYTES OF MEMORY ON A 486 MACHINE THOUGH A BIT SLOW ON A 386 NEEDING EXTRA MEMORY ONLY IF YOU RUN OTHER MAJOR PROGRAMS SIMULTANEOUSLY A BAREBONES VERSION TAKES UP JUST SIX MEGABYTES OF HARDDISK SPACE EVEN IF YOU INSTALL EVERY FEATURE IT USES 24 MEGABYTES LOTS LESS THAN WORDPERFECT THIS ISN'T TO SAY THERE'S NOTHING TO LIKE ABOUT THE NEW WORDPERFECT IT'S A TRUE WINDOWS PROGRAM WITH EXTENSIVE EDITING AND FORMATTING FEATURES FORMER USERS OF THE DOS NONWINDOWS VERSIONS OF WORDPERFECT CAN OPERATE THE NEW VERSION USING THE OLD COMMANDS AND THERE ARE INSTRUCTIONAL SEQUENCES CALLED COACHES TO GRAPHICALLY TEACH NEW ONES NEARLY EVERYTHING IN THE PROGRAM IS CUSTOMIZABLE AND WORDPERFECT INCLUDES 70 TEMPLATES THAT HELP USERS WRITE EVERYTHING FROM FAX COVER SHEETS TO REPORTS TO JOB APPLICATIONS WORDPERFECT ALSO HAS A FABULOUS SYSTEM FOR OPENING AND MANAGING FILES YOU CAN QUICKLY JUMP TO COMMONLY USED DIRECTORIES AND CAN COPY RENAME AND DELETE FILES WITHOUT LAUNCHING A SEPARATE PROGRAM BUT MICROSOFT WORD IS SMARTER SOFTWARE FOR WRITERS IN ADDITION TO AUTOMATED FORMATTING AND SPELLING CORRECTION THE NEW WORD AUTOMATICALLY LISTS YOUR MOST COMMONLY USED FONTS AT THE TOP OF THE FONT MENU AND LETS YOU OPEN TWO DOCUMENTS IN ADJOINING WINDOWS AND JUST DRAG A BLOCK OF TEXT FROM ONE TO THE OTHER USING THE MOUSE YOU CAN UNDO YOUR PAST 100 ACTIONS AND THEN REDO THEM IF YOU CHOOSE WORD DOESN'T HAVE AS MANY TEMPLATES AS WORDPERFECT BUT IT INCLUDES NINE STEPBYSTEP WIZARDS TO CREATE EVERYTHING FROM NEWSLETTERS TO RESUMES THAT ACTUALLY DO THE TASK FOR YOU RATHER THAN TRAINING YOU TO DO IT AND MICROSOFT PLANS TO RELEASE AN IDENTICAL VERSION FOR MACINTOSH USERS NEXT SPRING THAT'S A LONG WAIT BUT IT WILL BE A BOON TO OFFICES THAT MIX BOTH FLAVORS OF COMPUTER THERE ARE A FEW DUMB FEATURES IN WORD ONE I ESPECIALLY HATE IS A TIP OF THE DAY THAT APPEARS EACH TIME YOU START THE PROGRAM TO GIVE YOU A NEW HINT ON HOW TO USE IT FORTUNATELY IT CAN BE DISABLED OVERALL THOUGH WORD FOR WINDOWS 60 IS THE BEST WORDPROCESSING SOFTWARE I'VE SEEN FOR WINDOWS BECAUSE IT CONCENTRATES ON THE WRITING ITSELF AND HAS TAKEN THE FIRST STEPS TOWARD MAKING WORDPROCESSING SOFTWARE INTELLIGENT MICROSOFT IS PROMISING MORE SUCH SMART FEATURES ACROSS ITS PRODUCT LINE IF THE COMPANY DELIVERS ITS CUSTOMERS CAN SPEND LESS TIME ADAPTING TO THE SOFTWARE AND MORE TIME DOING THEIR WORK 9312020070 931202 WEDNESDAY'S MARKETS STOCKS RISE ON STRENGTH IN ECONOMY BOND PRICES ADVANCE ON LOW INFLATION DOLLAR ENDS MIXED BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCK PRICES SURGED AMID POWERFUL RALLIES OVERSEAS AND FURTHER EVIDENCE THE ECONOMY IS IMPROVING BOND PRICES ROSE AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE JUMPED 1313 POINTS TO 369708 STANDARD & POOR'S 500STOCK INDEX GAINED 010 TO 46189 AND THE NASDAQ COMPOSITE INDEX ROSE 942 TO 76381 SHARP GAINS OVERSEAS HELPED TO SET A POSITIVE TONE FOR TRADING IN NEW YORK BUT FOREMOST IN US INVESTORS' MINDS WAS FURTHER GOOD NEWS ABOUT THE AMERICAN ECONOMY SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORTED ITS INDEX OF BUSINESS ACTIVITY JUMPED MORE THAN EXPECTED TO 557 IN NOVEMBER FROM 538 IN OCTOBER A LEVEL ABOVE 50 INDICATES THAT THE MANUFACTURING SECTOR IS EXPANDING MR JOHNSON SAID THAT A SLIGHT DOWNWARD REVISION TO THIRDQUARTER GROSS DOMESTIC PRODUCT ALSO ANNOUNCED YESTERDAY WAS ECLIPSED BY THE STRING OF RECENT POSITIVE ECONOMIC NEWS IT'S FAIRLY CLEAR THE ECONOMY HAS BEEN GAINING MOMENTUM THROUGHOUT THE YEAR HE SAID IF YOU ADD IN THE PURCHASING MANAGERS REPORT IT LOOKS AS IF THAT MOMENTUM HAS CONTINUED INTO THE FOURTH QUARTER MR JOHNSON WAS ENCOURAGED THAT YESTERDAY'S STOCK MARKET GAIN WAS BROADBASED IN RECENT WEEKS THE NUMBER OF DECLINING ISSUES HAS OFTEN OUTNUMBERED ADVANCERS EVEN ON DAYS WHEN THE INDEXES ROSE BUT YESTERDAY ADVANCING ISSUES SWAMPED DECLINERS EVEN THE BOND MARKET ROSE DESPITE THE SIGNS OF THE IMPROVING ECONOMY MR JOHNSON SAID THE PURCHASING MANAGERS REPORT EASED INFLATION FEARS OF SOME BOND INVESTORS BECAUSE THE COMMODITY PRICE COMPONENT OF THE INDEX SHOWED ONLY A MEAGER GAIN WHAT WE'RE SEEING IN THE REPORT IS THAT THE MANUFACTURING SECTOR CONTINUES TO IMPROVE BUT AS YET THE PURCHASING MANAGERS ARE NOT SEEING SIGNIFICANT UPWARD PRESSURES ON PRICES HE SAID OVERSEAS TOKYO STOCK PRICES JUMPED 44 AFTER A PERIOD OF WORRYING DECLINES IN EUROPE HOPES OF FALLING INTEREST RATES DROVE BRITISH AND FRENCH STOCKS UP 21 AND GERMAN SHARES UP 16 FIRST AND MOST IMPORTANTLY IS THE EXPECTATION THAT INTEREST RATES ARE GOING TO BE CUT WITH THE POSSIBILITY OF THEIR BEING CUT QUITE AGGRESSIVELY OVER THE NEXT FEW MONTHS AS INFLATIONARY PRESSURES SUBSIDE IN GERMANY SAID PETER OPPENHEIMER STRATEGIST AT JAMES CAPEL & CO IN LONDON EUROPEAN STOCK PRICES ALSO WERE LIFTED BY EXPECTATIONS THAT AN ACCORD MAY BE NEAR ON THE GENERAL AGREEMENT ON TARIFFS AND TRADE SAID NICHOLAS STEVENSON A EUROPEAN EQUITY STRATEGIST AT SG WARBURG & CO IN LONDON IF AN AGREEMENT IS REACHED YOU CLEARLY WILL GET A YEAREND RALLY MR STEVENSON SAID I CAN'T SEE ANYTHING BETWEEN NOW AND YEAREND COMING THROUGH TO CAP IT WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 202 TO 10839 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2876 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1315 ISSUES ROSE AND 804 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1/2 POINT OR OVER 5 FOR EACH 1000 FACE AMOUNT TO YIELD 625 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17235 MARKS AND 10875 YEN COMPARED WITH 17150 MARKS AND 10908 YEN TUESDAY 9312020069 931202 HOW THEY BOUNCE BADCHECK TOLL RISES AS IT BECOMES EASIER TO PULL OFF SUCH FRAUD BANKS INCREASE VULNERABILITY BY GIVING QUICK ACCESS TO CUSTOMERS' DEPOSITS A LOT SIMPLER THAN ROBBERY BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL WITH FIVE CHILDREN AT HOME CHARLES E LEAKE TOOK MERIDIAN BANCORP UP ON ITS OFFER OF FREE TICKETS TO HERSHEY PARK IN PENNSYLVANIA IN RETURN FOR DEPOSITING 500 IN A NEW SAVINGS ACCOUNT THE UNEMPLOYED FORMER CAB DRIVER HOWEVER HAD A MORE SINISTER REASON FOR CHOOSING THE READING PA INSTITUTION FOR HIS NEW CHECKING AND SAVINGS ACCOUNTS IT OFFERED OVERNIGHT AVAILABILITY OF FUNDS ON DEPOSITED CHECKS ENABLING HIM TO WITHDRAW MONEY BEFORE THE BANK FOUND OUT WHETHER THE CHECKS HE HAD DEPOSITED WERE GOOD AND THE TECHNIQUE COULD BE REPEATED MR LEAKE SAYS THAT IN TOWNS WHERE THERE'S A MERIDIAN BRANCH I KNEW I'D DO ALL RIGHT USUALLY AT LEAST ONE OTHER BANK WAS DOING THE SAME THING BY THE TIME HE WAS ARRESTED AND HAD PLEADED GUILTY SEVERAL MONTHS AGO TO CHECKFRAUD CHARGES MR LEAKE HIS WIFE AND TWO ACCOMPLICES HAD BOUNCED CHECKS FOR MORE THAN 100000 AT 14 SOUTHEASTERN PENNSYLVANIA BANKS SAY POLICE THEY ALSO HAD DEMONSTRATED HOW EASILY MANY BANKS CAN BE CHEATED MR LEAKE COULDN'T HAVE RUN HIS SWINDLE FOR FOUR YEARS WITHOUT FLAWS IN THE SYSTEM FOR ISSUING AND APPROVING PERSONAL IDENTIFICATION AFTER HE SLIPPED UP AND THE POLICE FINALLY RAIDED HIS HOME IN A PHILADELPHIA SUBURB THEY FOUND DOZENS OF CHECKBOOKS WITH DIFFERENT ALIASES THE 38YEAROLD MR LEAKE WHO FACES A LIKELY SENTENCE OF TWO YEARS IS ONE OF A GROWING NUMBER OF CRIMINALS TAKING ADVANTAGE OF AN ANTIQUATED CHECKPAYMENT AND PROCESSING SYSTEM THAT SENDS SEVERAL HUNDRED MILLION CHECKS AROUND THE COUNTRY EVERY NIGHT WITH BANKS AND RETAILERS OFFERING CUSTOMERS QUICK HASSLEFREE SERVICE AND WITH SOPHISTICATED TECHNOLOGY TO COUNTERFEIT AND ALTER CORPORATE CHECKS READILY AVAILABLE FRAUD HAS BECOME A MAJOR PROBLEM EVERYONE FOOTS THE BILL BECAUSE FRAUD VICTIMS PASS ON LOSSES BY RAISING PRICES AND PAYING LESS IN TAXES WE'RE AT THE STAGE WHERE THE COSTS JUSTIFY THE NEED TO ATTACK THE PROBLEM SAYS CHARLES BOCK JR A SECURITY OFFICIAL AT CHEMICAL BANKING CORP IN NEW YORK THE BANKS WHICH ARE LIABLE FOR MAKING GOOD ON MOST FORGED AND PHONY CORPORATE CHECKS AS WELL AS ONES THEY ACCEPT ON BAD CONSUMER ACCOUNTS ARE LOSING SEVERAL BILLION DOLLARS A YEAR EXPERTS SAY NO ONE KNOWS THE EXACT TOTAL BECAUSE BANKERS ARE LOATH TO ACKNOWLEDGE THE SIZE OF THE PROBLEM BUT BANKS' CHECKFRAUD LOSSES EXCEED THE COMBINED TOLL FROM CREDITCARD FRAUD THEFT FROM AUTOMATIC TELLER MACHINES AND ARMED ROBBERIES IN ADDITION RETAILERS ACCEPTING CHECKS DRAWN ON UNDERFUNDED OR CLOSED ACCOUNTS ARE HIT FOR UPWARD OF 5 BILLION A YEAR THE NATIONAL RETAIL FEDERATION SAYS AND AT LEAST 1 BILLION OF COUNTERFEIT CHECKS ARE BELIEVED TO BE WRITTEN AGAINST THE ACCOUNTS OF CORPORATIONS WHOSE CHECK LOGOS BANK IDENTIFICATION NUMBERS AND EXECUTIVE SIGNATURES ARE EASILY COPIED IF THE PUBLIC KNEW HOW EASY IT IS HALF A MILLION MORE PEOPLE WOULD BE DOING IT SAYS FRANK ABAGNALE A FORMER CHECKFRAUD CONVICT WHO ADVISES COMPANIES ON FRAUD PREVENTION MR LEAKE WHO WAS CHARGED IN FEDERAL COURT IN HARRISBURG PA CLEARLY FOUND CHECK FRAUD EASY TAXI DRIVERS WOULD SELL HIM WITH NO QUESTIONS ASKED BITS OF INFORMATION TAKEN FROM WALLETS LEFT IN THEIR CABS AND LATER RETURNED TO UNSUSPECTING OWNERS MR LEAKE THEN WOULD USE THE INFORMATION TO OBTAIN NEW SOCIAL SECURITY CARDS BIRTH CERTIFICATES AND WITH THEM DRIVER'S LICENSES HE ALSO WOULD ESTABLISH RESIDENCE IN A ROOMING HOUSE IN EACH NEW TOWN AND GAIN A NEW ADDRESS ENCOURAGED BY HIS POLITE CONVERSATION CLERKS AT ID CENTERS AND BANKS SOMETIMES VOLUNTEERED SUPPORTING HISTORY FOR HIS LATEST ALIAS OR HELPED HIM FILL IN CRUCIAL BLANKS ON HIS BANKACCOUNT APPLICATION MR LEAKE SAYS MANY EVEN DISCLOSED THE INNER WORKINGS OF THEIR CHECKDEBITING SYSTEM FOR WEEKS AFTER OPENING LOCAL CHECKING AND SAVINGS ACCOUNTS EACH WITH 100 CASH MR LEAKE AND HIS ACCOMPLICES WHO ALSO HAD PHONY IDS WOULD MOVE MONEY AROUND BY EXCHANGING CHECKS WITH EACH OTHER THEY CHOSE ONLY BANKS THAT MADE FUNDS AVAILABLE JUST ONE DAY AFTER A DEPOSIT IT WAS EVEN BETTER ON FRIDAYS THE BUSINESS DAY ENDED AT 3 PM SO AFTER THAT IT'S TECHNICALLY THE NEXT BUSINESS DAY MR LEAKE SAYS HAVING DEPOSITED A CHECK FOR SAY 6500 FROM AN ACCOMPLICE AT NOON HE WOULD WAIT UNTIL 4 PM AND ASK A TELLER ABOUT HIS AVAILABLE BALANCE USUALLY THE CHECKS HAD NOT EVEN LEFT THE BANK BUT THE TELLER WOULD SAY YOU HAVE A BALANCE OF 6500 MR LEAKE SAYS I WOULD WITHDRAW ALL BUT 1000 AND I'D BE GONE WITH HIS ACCOMPLICES STRIKING AT THE SAME TIME THE GROUP WOULD COLLECT 20000 OR SO AND HEAD FOR ANOTHER TOWN BUT MR LEAKE EVENTUALLY SLIPPED UP HE DROVE A CAR BEARING HIS OWN LICENSE PLATE WHICH A SUSPICIOUS BANKER IN HARRISBURG PHOTOGRAPHED WHILE MR LEAKE WAS IN THE BANK POLICE RAIDED HIS HOME ALTHOUGH SOME BANKS RETAILERS AND CHECKISSUING CORPORATIONS ARE BEGINNING TO FIGHT BACK CHECK FRAUD HAS BECOME SO SERIOUS PARTLY BECAUSE LOCAL POLICE ARE USUALLY TOO BUSY WITH VIOLENT CRIME FEDERAL INVESTIGATIONS DON'T START UNTIL THE TAKE BY A SINGLE SWINDLER OR RING REACHES TENS OF THOUSANDS OF DOLLARS IN FLORIDA WHITECOLLAR CRIME MUST INVOLVE ABOUT 100000 BEFORE A FELON GOES TO PRISON I'M ALWAYS AMAZED WHY SOMEBODY WOULD ROB A BANK AND RISK GETTING A WHOLE POSSE AFTER THEM SAYS RICHARD MURE A DETECTIVE IN THE MIAMI POLICE DEPARTMENT'S ECONOMICCRIME UNIT FOR YEARS MOREOVER BANKS HAVE NEITHER SHARED INFORMATION ON FRAUD NOR TOTALED UP THEIR OWN LOSSES THEY DIDN'T WANT TO ADMIT THEY WERE PATSIES SAYS BRUCE BRETT A VICE PRESIDENT OF SIGNET BANKING CORP AND THE CHAIRMAN OF A RECENTLY FORMED AMERICAN BANKERS ASSOCIATION CHECKFRAUD TASK FORCE EDWARD FURASH A BANK CONSULTANT IN WASHINGTON DC SUSPECTS ANOTHER MOTIVE AS WELL HE NOTES THAT BANKS AND SAVINGS INSTITUTIONS EARN A LOT OF MONEY ON SIN CHARGES FEES CHARGED FOR BOUNCING A CHECK MAKING A FUSS ABOUT CHECK FRAUD WOULD CALL ATTENTION TO THAT AS WELL BANKS ON AVERAGE ASSESS CUSTOMERS A 1780 INSUFFICIENTFUNDS FEE FOR EACH BAD CHECK ACCORDING TO BANK RATE MONITOR NATIONWIDE SUCH FEES TOTAL SEVERAL HUNDRED MILLION DOLLARS A YEAR ABOUT SIX TIMES THE BANKS' COST SOME EXPERTS ESTIMATE BANKS ALSO CHARGE RETAILERS AND OTHERS AN AVERAGE OF ABOUT 3 EACH TIME THEY RESUBMIT A CHECK FOR PAYMENT THAT IS CLOSE TO THE BANKS' ACTUAL COST BUT STILL BRINGS IN AN ADDED 15 BILLION OR SO A YEAR HOWEVER MR BRETT STILL DOUBTS THAT THE BANKS ARE COMING OUT AHEAD HE SAYS THEIR COSTACCOUNTING SYSTEMS CLEARLY ARE NOT GEARED TOWARDS IDENTIFYING THE COST OF CHECK FRAUD SOME BANKERS BLAME PART OF THE FRAUD ON REGULATION CC WHICH STEMS FROM A 1987 LAW REQUIRING BANKS TO MAKE FUNDS AVAILABLE IN TWO DAYS FOR CHECKS DRAWN ON LOCAL BANKS AND IN FIVE DAYS FOR OUTOFTOWN INSTITUTIONS THE FEDERAL RESERVE IS ASKING CONGRESS TO EXTEND CC SETTLEMENT DEADLINES TO THREE DAYS FOR LOCAL CHECKS BUT MEANWHILE MANY BANKS ARE WOOING NEW CUSTOMERS BY MAKING ALL THE MONEY FROM LOCAL CHECKS AVAILABLE IN JUST ONE DAY EVEN THOUGH THE MINIMUM AMOUNT REQUIRED BY LAW IS 100 AND ABA SURVEYS SHOW THAT THE CHECKCLEARING CYCLE USUALLY TAKES MORE THAN TWO DAYS HITANDRUN THIEVES KNOW THE ACHILLES' HEEL OF BANKING IS GETTING THE CHECK BACK ON TIME TO MAKE A DECISION SAYS MR BRETT HE SAYS BANKERS' EAGERNESS TO OPEN NEW ACCOUNTS SCARES THE HELL OUT OF THE ABA TASK FORCE MANY LARGE CONSUMER BANKS IN THE EAST AND ALMOST ALL CALIFORNIA BANKS MAKE FUNDS AVAILABLE ESPECIALLY QUICKLY AND FACE THE BIGGEST PROBLEM WITH BAD CHECKS THEY DON'T WANT TO LENGTHEN THEIR HOLDING PERIODS DO YOU WANT TO PENALIZE THE 995 OF GOOD CUSTOMERS FOR THE BAD EGGS ASKS A SPOKESMAN FOR MERIDIAN THE BANK HIT BY MR LEAKE WE AND OTHERS VIEW THAT AS THE COST OF DOING BUSINESS CORPORATIONS PLAGUED WITH COUNTERFEIT CHECKS AGAINST THEIR ACCOUNTS ALSO FACE DIFFICULTY BECAUSE ALL THAT CROOKS NEED A LASER SCANNER TO CAPTURE THE IMAGES A COMPUTER TO ALTER OR ADD DATA AND A COLOR PRINTER COSTS LESS THAN 3000 MACHINES THAT ENCODE PHONY CHECKS WITH EVEN MORE REALISTIC CHECK IDENTIFICATION AND ROUTING NUMBERS COST ABOUT 25000 I'VE SEEN SOME CHECKS WHERE YOU CAN'T TELL THE DIFFERENCE BETWEEN THE REAL ONES AND THE FRAUDS SAYS ELLIOTT MCENTEE PRESIDENT OF THE NATIONAL AUTOMATED CLEARING HOUSE ASSOCIATION WHICH HANDLES ELECTRONIC PAYMENTS SUCH AS DIRECT PAYROLL DEPOSITS GETTING CHECKS TO DUPLICATE ISN'T HARD BANKS SELL THEIR OWN CASHIER'S CHECKS SOME SWINDLERS KNOWN AS DUMPSTER DIVERS FISH USED CHECKS OUT OF TRASH BINS EVEN A CORPORATE LOGO FROM A BUSINESS CARD CAN BE SCANNED TO MAKE A COUNTERFEIT CHECK THOUSANDS OF TIMES A DAY SAYS MR ABAGNALE THE FRAUDPREVENTION ADVISER SOMEONE GETS A SMALL REFUND CHECK SCANS IT ONTO A COPY CHANGES THE DOLLAR AMOUNT AND CASHES IT TELEMARKETING SCAMS LEADING TO COUNTERFEIT CHECKS ARE ALSO GOING GREAT GUNS SAYS BARBARA HURST WHO ADVISES BANKS THROUGH BANKERS' HOTLINE A BROOKHAVEN PA NEWSLETTER THEY CALL SAYING YOU'VE WON A VACATION BUT WILL HAVE TO PAY THE TAX' TO GAIN TRUST THE TELEMARKETER ADVISES AGAINST GIVING OUT A CREDITCARD NUMBER BUT INSTEAD ASKS FOR DATA INSCRIBED AT THE BOTTOM OF THE CHECK ESPECIALLY PROFICIENT AT SETTING UP TELEMARKETING AND OTHER CHECK FRAUDS ARE DRUG RINGS ACCORDING TO JAMES KERINS III WHOSE NATIONAL FRAUD INVESTIGATION CENTER IN AMBLER PA WORKS WITH BANKS IN CALIFORNIA THE LATEST SCAM INVOLVES A WELLORCHESTRATED RING OF CHECK CASHERS WHO POSE AS JANITORS GARDENERS OR CUSTODIAL WORKERS CASHING THEIR PAYCHECKS AT LIQUOR AND GROCERY STORES SAYS JERRY MILANO EXECUTIVE DIRECTOR OF THE CALIFORNIA BANKERS CLEARING HOUSE DIRECTED BY A SHEPHERD THE CASHERS ARE GIVEN ONE PHONY CORPORATE CHECK AND ONE FICTITIOUS ID AT A TIME CHECK COUNTERFEITERS HAVE GROWN SO BRAZEN THAT ONE OR A GROUP EVEN DUPLICATED CASHIER'S CHECKS DRAWN ON THE FEDERAL RESERVE BANK OF NEW YORK THE WOULDBE SWINDLER THEN TRIED TO PASS 30 OF THE CHECKS WRITTEN OUT FOR 189 MILLION ON UNSUSPECTING BANKS IT DIDN'T WORK THE BANKS NOTIFIED THE FED WHICH ALERTED THE FEDERAL BUREAU OF INVESTIGATION AND OTHER BANKS AFTER YEARS OF BICKERING OVER WHO SHOULD CHECK IDENTIFICATIONS MORE CLOSELY RETAILERS AND BANKS FINALLY GOT TOGETHER THIS YEAR TO WORK ON DETERRENTS SUCH AS SHARING DATA ON KNOWN CHECK BOUNCERS AND CLOSED BANK ACCOUNTS AND LINKING UP ELECTRONICALLY MORE COMPANIES ARE PAYING EXTRA FOR COPYPROOF CHECK STOCK AND TRANSMITTING POSITIVE PAY CHECK DATA SO THEIR BANKS CAN COMPARE CHECKS SUBMITTED FOR PAYMENT WITH A LIST PREVIOUSLY DRAWN UP BY THE COMPANY SOME COMPANIES MAY HAVE MORE REASON TO ACT AS NEW LIABILITY LAWS GET TESTED A NEWLY REVISED UNIFORM COMMERCIAL CODE CALLS ON CORPORATIONS TO EXERCISE DUE DILIGENCE TO PREVENT THEFT OF BLANK CHECKS OR RELIANCE ON CHECKS THAT CAN BE COPIED EASILY CURRENTLY CORPORATIONS ARE OFF THE HOOK IF THEY NOTIFY THEIR BANKS WHEN CHECKS PAID ON THEIR ACCOUNT ARE FRAUDULENT MANY BANKS ALSO ARE MOVING TO CURB FRAUD CHEMICAL IS USING PAST FRAUD EXPERIENCE TO SCREEN ACCOUNT APPLICATIONS IDS SUCH AS SOCIAL SECURITY NUMBERS ADDRESSES OR DRIVER'SLICENSE NUMBERS ARE MATCHED SO THAT EVEN IF A DIFFERENT NAME IS USED ANOTHER ID USED IN THE PAST MIGHT BE THE SAME AND WOULD BE NOTICED TO BATTLE ETHNIC CHECKFRAUD RINGS THE BANK USES TELLTALE TRAITS FROM EARLIER APPLICATIONS MEMBERS OF A WEST AFRICAN RING FOR INSTANCE TRANSPOSE THE FIRST AND LAST MAIDEN NAME OF THEIR MOTHERS AND PUT THE YEAR FIRST AHEAD OF THE DAY AND MONTH WELLS FARGO & CO OF SAN FRANCISCO HAS CHECKLOSSPREVENTION PROGRAMS THAT HAVE RECENTLY CUT LOSSES BY 25 SAYS LISA WILHELM A VICE PRESIDENT WANTED POSTERS OFFERING REWARDS UP TO 2500 AND SHOWING PHOTOS OF BADCHECK PASSERS TAKEN BY SECURITY CAMERAS HAVE HELPED NAB 10 SWINDLERS SINCE 1991 IT'S ALSO A MESSAGE TO CRIMINALS THAT IF YOU ARE DUMB ENOUGH TO TRY WE'LL SPLATTER YOUR PICTURE ALL OVER THE STATE MS WILHELM SAYS MANY BANKS ALREADY SHARE INFORMATION ON ACCOUNTS CLOSED FOR CAUSE USUALLY WHEN A BANK IS OWED MONEY FROM BAD CHECKS OFFERING THE SERVICE ARE CHEXSYSTEMS A UNIT OF DELUXE CORP AND TELECHECK A UNIT OF FIRST FINANCIAL MANAGEMENT RETAILERS ALSO SHARE DATA WHEN THEY HAVE BEEN TAKEN TO THE CLEANERS TELECHECK AND SCAN A PROGRAM OF ELECTRONIC TRANSACTION CORP OFFERS ONLINE SYSTEMS FROM THE POINT OF SALE THAT LET A MERCHANT KNOW IF A CUSTOMER HAS ALREADY WRITTEN ONE CHECK THAT STILL DIDN'T CLEAR ON ITS SECOND TRY MERCHANTS CAN ALSO TIE INTO THE TELECHECK AND CHEXSYSTEMS FILES ON CLOSED BANK ACCOUNTS SOME BANKS HELP RETAILERS BY TELLING THEM OVER AN 800 PHONE NUMBER IF A CHECK IS DRAWN ON A GOOD ACCOUNT WITH ENOUGH FUNDS OFFERING THE MOST PROMISE FOR REDUCING FRAUD IS ELECTRONIC CHECK PRESENTMENT BY ELECTRONICALLY SENDING THE NUMBER OF THE PAYING BANK AND THE ACCOUNT NUMBER AT THE BOTTOM OF THE CHECK ON THE DAY OF DEPOSIT ELECTRONIC CHECK PRESENTMENT GIVES THE PAYING BANK A HEAD START TO SEE WHETHER FUNDS ARE AVAILABLE BEFORE THE CHECKS ARRIVE IN TURN THE BANK TELLS THE BANK OF DEPOSIT BEFORE IT OPENS FOR BUSINESS THAT IT MAY WANT TO PUT A HOLD ON A CHECK THAT WOULD SAVE HOURS ON CHECKS OF 2500 OR MORE AND DAYS ON SMALLER CHECKS THE KEY TO STOPPING CHECK FRAUD IS TO CREATE ELECTRONIC FILES AND ACCELERATE THE FLOW OF INFORMATION SAYS HENRY FARRAR A NEW YORK CLEARING HOUSE OFFICIAL IF THE BANKING SYSTEM MADE FULL USE OF THIS SYSTEM CHECK FRAUD WOULD BE HALVED CONTENDS DENNIS CARREKER WHOSE DALLAS CONSULTING FIRM DJ CARREKER ASSOCIATES IS DEVELOPING SUCH A SYSTEM UNDER THE NAME ECCO WHICH HAS BEEN JOINED BY MOST MAJOR BANKS REGIONAL CLEARING HOUSES AND THE FEDERAL RESERVE HAVE SIMILAR PROGRAMS IN THE WORKS PUSHING BANKS TO INVEST IN SUCH SYSTEMS IS A NEW FED MANDATE EFFECTIVE IN JANUARY FOR ALL BANKS TO PROVIDE SAMEDAY SETTLEMENT ON CHECKS PRESENTED BY 8 AM BANKS ALSO WILL BE ABLE TO SELL SUCH DATA TO RETAILERS FOR TIGHTER SECURITY AND OTHER CORPORATIONS FOR BETTER CASHMANAGEMENT CONTROLS IN ADDITION ELECTRONIC CHECK PRESENTMENT THOUGH NOT AN OFFICIAL SETTLEMENT PROCESS WILL ENABLE BANKS TO GAIN THE USE OF CUSTOMER FUNDS FOR A DAY BEFORE HAVING TO PAY THEM OUT TO THE BANK OF DEPOSIT FLORENCE YOUNG AN OFFICIAL IN THE FED'S PAYMENTSYSTEMS DIVISION CONCEDES THAT SUCH A PRACTICE IS LEGAL BUT SAYS THE FACT THAT THE FUNDS ARE NOT ACTUALLY TRANSFERRED AT THE SAME TIME RAISES QUESTIONS ABOUT WHETHER IT IS APPROPRIATE TO TAKE MONEY FROM A CUSTOMER'S ACCOUNT BEFORE SETTLEMENT BETWEEN BANKS THE BANKS THEMSELVES OFTEN AGREE TO SHARE THE BENEFITS OF THE ONEDAY FLOAT MEANWHILE ENOUGH SUCH FRAUDPREVENTION PROGRAMS ARE GETTING UNDER WAY TO MAKE MANY SECURITY EXPERTS BELIEVE THAT THE TIDE OF CHECK FRAUD IS TURNING MR MILANO OF THE CALIFORNIA BANKERS CLEARING HOUSE EXPECTS THAT A YEAR FROM NOW THE CURRENT LEVEL WILL BE CUT IN HALF BUT SOME EXPERTS FEAR SETBACKS DENIS DUNANN PRESIDENT OF ELECTRONIC TRANSACTION CORP IS CONCERNED ABOUT A PROPOSED AMENDMENT TO THE FAIR CREDIT REPORTING ACT THE AMENDMENT WOULD DELAY FOR AT LEAST THREE DAYS REPORTS ON CLOSED ACCOUNTS AND BAD CHECKS AND ALLEN LIPIS WHO HEADS AN ATLANTA CONSULTING FIRM GLOBAL CONCEPT BELIEVES THAT THE BANKING SYSTEM WON'T BE ON AN ELECTRONIC HOOKUP UNTIL THE END OF THE DECADE IT'S NOT A TRIVIAL THING TO LINK UP 10000 BANKS HE SAYS 9312020068 931202 BUSINESS BRIEF NEOPROBE CORP OHIO CONCERN AGREES TO BUY 63 OF MONOCARB'S STOCK NEOPROBE CORP COLUMBUS OHIO AGREED TO A STOCK SWAP IN WHICH IT WILL ACQUIRE 63 OF THE STOCK OUTSTANDING OF MONOCARB AB OF SWEDEN IN A TRANSACTION VALUED AT ABOUT 752000 MONOCARB MAKES ANTIBODIES AND BLOOD GROUPING REAGENTS AND IS LICENSED BY THE FOOD AND DRUG ADMINISTRATION THE ACQUISITION WILL GIVE NEOPROBE THE ANTIBODIES TO USE IN CLINICAL TRIALS OF ITS TECHNOLOGY THAT DETERMINES THE SPREAD OF CANCER NEOPROBE HAS THE OPTION TO ACQUIRE THE REST OF MONOCARB'S STOCK FOR STOCK VALUED AT ABOUT 450000 NEOPROBE ALSO SAID IT COMPLETED A PRIVATE PLACEMENT OF 550000 UNITS WHICH INCLUDE TWO COMMON SHARES AND ONE SERIES E WARRANT FOR 66 MILLION 9312020067 931202 KARCHER FORMS GROUP TO HELP HIM WITH HIS FINANCES BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL ANAHEIM CALIF CARL N KARCHER THE RECENTLY OUSTED FOUNDER OF CARL KARCHER ENTERPRISES INC SAID HE FORMED AN INVESTOR GROUP WITH FIDELITY NATIONAL FINANCIAL INC CHAIRMAN WILLIAM P FOLEY II TO HELP HIM RESTRUCTURE HIS PERSONAL FINANCES THE ALLIANCE WITH MR FOLEY WILL ALLOW MR KARCHER TO REGAIN AT LEAST SOME CONTROL OVER LARGE BLOCKS OF CARL KARCHER ENTERPRISES STOCK THAT HE HAD PLEDGED AS COLLATERAL ON PERSONAL LOANS THAT WENT INTO DEFAULT AND WITH HIS HOLDINGS WHICH ONCE TOTALED 34 BACK IN FRIENDLY HANDS THE 76YEAROLD HAMBURGER PATRIARCH HOPES TO PRESSURE THE CARL KARCHER ENTERPRISES BOARD INTO MAKING SOME CONCESSIONS TO HIM HE'S NOW ASKING THAT THE BOARD NAME HIM CHAIRMAN EMERITUS AND REINSTATE HIS SALARY RETROACTIVE TO HIS FIRING IN OCTOBER AND IF HE DOESN'T GET HIS WAY HE MAY STILL MAKE GOOD ON HIS PREVIOUS THREATS TO LAUNCH A PROXY BATTLE TO REGAIN CONTROL OF THE COMPANY HE FOUNDED 52 YEARS AGO A PROXY FIGHT HAS ALWAYS BEEN AN OPTION AND CONTINUES TO BE AN OPTION A SPOKESMAN FOR MR KARCHER SAID BUT HE ADDED WE ARE HOPEFUL FOR AN AMICABLE RESOLUTION A SPOKESMAN FOR CARL KARCHER ENTERPRISES SAID NO AGREEMENT HAS BEEN REACHED YET AND DECLINED TO COMMENT FURTHER MR FOLEY COULDN'T BE REACHED FOR COMMENT THE ALLIANCE WITH MR FOLEY CLEARLY STRENGTHENS MR KARCHER'S HAND IN HIS BATTLE WITH THE BOARD THE FOLEYLED INVESTOR GROUP WILL ATTEMPT TO RESTRUCTURE A 23750000 PERSONAL LOAN OF MR KARCHER'S WITH UNION BANK OF SAN FRANCISCO THAT IS IN DEFAULT AND IF SUCCESSFUL WILL REGAIN CONTROL OVER 39 MILLION CARL KARCHER ENTERPRISES SHARES THAT MR KARCHER HAD PLEDGED AS COLLATERAL THE GROUP WOULD KEEP ABOUT 29 MILLION OF THE SHARES AND MR KARCHER WOULD RETAIN THE REST LEAVING HIM WITH ABOUT A 10 TO 11 STAKE IN CARL KARCHER ENTERPRISES MR FOLEY FIRST EMERGED AS MR KARCHER'S FINANCIAL SAVIOR IN OCTOBER WHEN HE AND A GROUP OF INVESTORS PURCHASED 650072 OF MR KARCHER'S SHARES TO BAIL HIM OUT ON A 48 MILLION LOAN WITH COMMERCIAL CENTER BANK OF SANTA ANA CALIF THAT WAS IN DEFAULT MR KARCHER'S FINANCIAL WOES STEM LARGELY FROM REALESTATE INVESTMENTS THAT SOURED AND WERE THE CAUSE OF CONTINUING FRICTION BETWEEN HIM AND CARL KARCHER ENTERPRISES DIRECTORS AND CURRENT MANAGEMENT ALTHOUGH MR KARCHER'S SPOKESMAN SAID THAT KARCHER AND FOLEY BOTH DESIRE AND EXPECT AN EXPEDITIOUS AND AMICABLE RESOLUTION OF THE VARIOUS DISPUTES BETWEEN KARCHER AND THE BOARD OF DIRECTORS OF THE COMPANY IT APPEARS MR KARCHER ISN'T ABOUT TO LET GO OF HIS DESIRE TO TESTMARKET GREEN BURRITO MEXICAN FOODS IN CARL'S JR HAMBURGER RESTAURANTS THAT PLAN WAS THE FINAL STRAW THAT PRECIPITATED MR KARCHER'S OUSTER WITH THE BOARD CLAIMING HE WAS PURSUING THE GREEN BURRITO PLAN PRIMARILY BECAUSE OF A COMPLEX BUSINESS ARRANGEMENT THAT WOULD HAVE BEEN TO HIS PERSONAL FINANCIAL BENEFIT 9312020066 931202 BUSINESS BRIEF NATIONAL MEDICAL ENTERPRISES INC HOSPITAL OPERATOR CLOSES INDIANAPOLIS OFFICE FIRES 34 NATIONAL MEDICAL ENTERPRISES INC SANTA MONICA CALIF SAID IT CLOSED ITS INDIANAPOLIS REGIONAL OFFICE AND DISMISSED ABOUT 34 EMPLOYEES IN VARIOUS LOCATIONS AS PART OF A CONSOLIDATION OF ITS TROUBLED PSYCHIATRIC OPERATIONS THIS IS A STREAMLINING OF THE OPERATIONS IN PREPARATION FOR THEIR EVENTUAL SALE A SPOKESMAN SAID SEVEN REGIONS IN THE DIVISION WERE REDUCED TO THREE AND THE NUMBER OF REGIONAL VICE PRESIDENTS WAS CUT ACCORDINGLY THREE REGIONAL VICE PRESIDENTS WERE DISMISSED AND ONE WAS REASSIGNED NOTIFICATION OF THE AFFECTED EMPLOYEES BEGAN MONDAY AND WAS COMPLETED YESTERDAY THE COMPANY SAID NATIONAL MEDICAL ALSO OWNS ACUTECARE AND REHABILITATION HOSPITALS 9312020064 931202 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RUSSIA'S PRIVATIZATION AGENCY WILL PUT INDUSTRIAL BEHEMOTHS INCLUDING SOME OF THE COUNTRY'S BESTKNOWN ENTERPRISES INTO PRIVATE HANDS IN THE NEXT FEW MONTHS THE GOVERNMENT HAS PREPARED 40 COMPANIES FOR AUCTION TO RUSSIANS USING VOUCHERS ISSUED A YEAR AGO TO BID ON SHARES IN FORMERLY STATEOWNED COMPANIES SO FAR 6200 OF 14000 MIDSIZE AND LARGE COMPANIES HAVE BEEN AUCTIONED OFF AMONG THE GIANT ENTERPRISES TO BE SOLD IS THE GORKY AUTOMOBILE FACTORY KNOWN AS GAZ WHICH MAKES THE VOLGA CAR EMPLOYEES WILL OWN HALF THE SHARES AND THE OTHER HALF WILL BE AUCTIONED THIS MONTH AND NEXT MONTH OTHER SELLOFFS INCLUDE THE OIL PRODUCERS SURGUTNEFTEGAZ AND LUKOIL SHIPBUILDERS IN THE ARCTIC PORT OF ARKHANGELSK AND THE AUTO MAKER AVTOVAZ THE VALUE OF VOUCHERS HAS RALLIED DOUBLING LAST MONTH AND STABILIZING SINCE AT 27000 RUBLES 2186 IN MOSCOW DEALINGS IN THE FIRST SIGNIFICANT GERMAN LABOR ACCORD FOR 1994 THE DAG WHITECOLLAR UNION AGREED TO A 2 WAGE INCREASE BEGINNING IN FEBRUARY FOR 230000 EMPLOYEES IN THE INSURANCE SECTOR THE WORKERS ALSO WILL GET A ONETIME 350 PAYMENT AND A PUBLICTRANSIT SUPPLEMENT MAKING THE OVERALL INCREASE 3 THE HBV UNION WHICH REPRESENTS OTHER INSURANCE WORKERS HAS DECLARED ITS NEGOTIATIONS AT AN IMPASSE MEANWHILE THE NGG UNION OF 590000 FOODINDUSTRY AND 600000 HOTELANDRESTAURANT WORKERS WILL SEEK A PAY BOOST THAT AT LEAST MATCHES INFLATION NOW 37 IN WESTERN GERMANY THE GOVERNMENT HAS SOUGHT WAGE RESTRAINT IN FIGHTING RECESSION IRAN UNVEILED LIBERALIZED RULES THAT PERMIT UNRESTRICTED FOREIGN INVESTMENT AND TRADING IN THE COUNTRY'S FIVE FREETRADE ZONES WHICH THE CASHSTRAPPED GOVERNMENT CAN'T AFFORD TO DEVELOP ALONE FIRMS INCLUDING BANKS THAT OPERATE IN THE ZONES WON'T BE SUBJECT TO CURRENCY RESTRICTIONS OTHER INCENTIVES INCLUDE INSURANCE FACILITIES FAVORABLE TARIFFS AND 15YEAR TAX BREAKS THE ZONES ARE IN SIRJAN AND CHAHBAHAR AND ON THE PERSIAN GULF ISLANDS OF QESHM KISH AND HORMUZ FOLLOWING THE 1979 ISLAMIC REVOLUTION NUMEROUS FOREIGN FIRMS WERE FORCED TO LEAVE IRAN THE FERTILITY RATE IN THE EUROPEAN COMMUNITY FELL TO A RECORD LOW 148 CHILDREN PER WOMAN LAST YEAR COMPARED WITH 182 IN 1980 SAID EUROSTAT THE EC'S STATISTICS OFFICE WOMEN ALSO GAVE BIRTH LATER IN LIFE THE MIDRANGE AGE WAS 26 WOMEN MADE UP 51 OF THE 12COUNTRY TRADE BLOC'S POPULATION AND 41 OF ITS LABOR MARKET WOMEN INCREASINGLY WERE SINGLE PARENTS AS 20 OF BABIES IN THE EC WERE BORN OUT OF WEDLOCK EUROSTAT NOTED TRENDS OF FEWER EC CITIZENS MARRYING AND MORE DIVORCING A JAPANESE ADVISORY PANEL RECOMMENDED THE GOVERNMENT SUBSIDIZE WORKERS ON CHILDCARE LEAVE AND SENIOR EMPLOYEES WHO RETIRE AND FIND OTHER JOBS AT LOWER WAGES THE LABOR MINISTRY INTENDS TO CHANGE THE EMPLOYMENTINSURANCE SYSTEM BY APRIL 1995 THE PANEL URGED PAYING MEN AND WOMEN ON CHILDCARE LEAVE 25 OF THEIR SALARIES UNDER CURRENT LAW BUSINESSES MUST ALLOW A YEAR OF SUCH LEAVE BUT MAY MAKE IT UNPAID A DETERRENT SUBSIDIES TO 140000 EMPLOYEES COULD TOTAL 532 MILLION A YEAR REEMPLOYED WORKERS AGED 60 TO 65 WOULD GET 25 OF THEIR NEW WAGES COSTING 496 BILLION A YEAR FOR 12 MILLION PEOPLE TO PROTECT CHILDREN THE FRENCH GOVERNMENT DRAFTED PROPOSALS FOR A GLOBAL CURB ON VIOLENCE IN TELEVISION PROGRAMS AND LAWMAKERS THIS WEEK WILL DEBATE A MEASURE TO ENFORCE A WIDELY FLOUTED FRENCH BAN ON TELEVISING VIOLENT FILMS BEFORE 1030 PM IT IS OUR DUTY TO AVOID WHAT HAPPENS IN THE US WHERE BY THE AGE OF 6 A BOY HAS ALREADY WATCHED 6000 CRIMES AND OFFENSES ON TELEVISION COMMUNICATION MINISTER ALAIN CARIGNON TOLD PARLIAMENT US ATTORNEY GENERAL JANET RENO ALSO HAS BEMOANED THIS ISSUE FRENCH LAW DECLARES THAT CHILDREN UNDER 13 CAN'T DISTINGUISH GOOD AND EVIL AND THUS AREN'T RESPONSIBLE FOR THEIR ACTIONS FRENCH OFFICIALS CITED A TRAMP'S DEATH IN WHICH THREE FRENCH BOYS ARE ACCUSED OF INVOLVEMENT THE HANGING OF A CHILD AT A FRENCH BIRTHDAYPARTY GAME OF COWBOYS AMONG OTHER INCIDENTS TO WARRANT ACTION MR CARIGNON SAID FRENCH RULES BARRING VIOLENCE ON TV BETWEEN 6 AM AND 1030 PM ARE INSUFFICIENT AND WIDELY DISREGARDED BY PRIVATE AND STATEOWNED CHANNELS HE ALSO WANTS TO PREVENT BROADCASTS OF VIOLENT FILMS INTO FRANCE FROM ABROAD SLOVAKIA RECEIVED WORLD BANK APPROVAL FOR AN 80 MILLION LOAN TO SUPPORT IMPORTS OF ESSENTIAL GOODS INCLUDING OIL TO GIVE THE REPUBLIC BREATHING ROOM WHILE IT RESTRUCTURES ITS ECONOMY THE 17YEAR CREDIT CAN'T BE USED TO BUY LUXURY GOODS MILITARY GEAR OR TOBACCO URUGUAY'S UNEMPLOYMENT RATE IN THE THREE MONTHS THROUGH OCTOBER FELL TO 74 THE LOWEST IN 10 YEARS 9312020063 931202 WHO'S NEWS GIORDANO TO BECOME BRITISH GAS CHAIRMAN SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH GAS PLC SAID IT HAS APPOINTED RICHARD GIORDANO TO SUCCEED ROBERT EVANS AS CHAIRMAN AS OF JAN 1 MR EVANS ANNOUNCED IN APRIL HIS INTENTION TO RETIRE MR GIORDANO 59 YEARS OLD IS CURRENTLY NONEXECUTIVE DEPUTY CHAIRMAN OF GRAND METROPOLITAN PLC AND HOLDS A NUMBER OF NONEXECUTIVE DIRECTORSHIPS SOME OF WHICH HE WILL RELINQUISH HE GRADUATED FROM HARVARD IN 1956 AND RECEIVED A LAW DEGREE FROM COLUMBIA UNIVERSITY SCHOOL OF LAW AFTER PRACTICING LAW HE JOINED AIRCO INC IN 1963 AND BECAME PRESIDENT OF THAT COMPANY IN 1971 IN 1979 HE BECAME CHIEF EXECUTIVE OFFICER OF BOC GROUP PLC AND WAS CHAIRMAN OF BOC FROM 1985 TO 1992 HE WAS ALSO ON THE BOARD OF NATIONAL POWER PLC UNTIL 1992 BRITISH GAS IS A MAGNIFICENT WORLDCLASS ORGANIZATION WHICH IS NOW ENTERING A PERIOD OF GREAT CHANGE MR GIORDANO SAID ADDING THAT THE COMPANY WILL NEED TO FOCUS ON ADDING VALUE FOR ITS TWO MILLION SHAREHOLDERS 9312020062 931202 LEISURE & ARTS FILM COSTNER STARS IN EASTWOOD'S A PERFECT WORLD' BY JULIE SALAMON EVERY SO OFTEN DURING A PERFECT WORLD I IMAGINED THAT PAUL NEWMAN'S FACE THE FACE OF 30 YEARS AGO HAD REPLACED KEVIN COSTNER'S ON THE SCREEN IT WASN'T THAT MR COSTNER REMINDED ME OF MR NEWMAN HE DIDN'T HE ISN'T PRETTY AND SMART BUT THE CHARACTER HE WAS PLAYING AN ENDEARING SOCIOPATH IS THE KIND OF COOLLY ALIENATED TOUGH GUY MR NEWMAN HAS ALWAYS PLAYED SO WELL IT ISN'T JUST THOSE EYES AND THAT SPECIAL SNEER THERE'S ALWAYS THE FAST WIT KEEPING THE AUDIENCE OFF BALANCE ONSCREEN MR NEWMAN CAN REVEAL EVERYTHING THAT'S WRONG WITH HIS CHARACTER AND THEY'LL LIKE HIM ANYWAY LIKE A THIEF SO CHARMING YOU APOLOGIZE TO HIM FOR THINKING IT WAS WRONG FOR HIM TO PICK YOUR POCKET IT WOULD HAVE BEEN INTERESTING TO SEE BUTCH HAYNES THE FUGITIVE HERO OF A PERFECT WORLD PLAYED WITH THAT KIND OF COMPLICATION A PRISON ESCAPEE ON THE LAM HE'S TAKEN A SEVENYEAROLD BOY AS HOSTAGE THE BOY ALSO BECOMES A KIND OF PSYCHOLOGICAL SURROGATE FOR HIMSELF AS A YOUNG BOY WHILE THE MOVIE'S MOMENTUM COMES FROM THE CHASE THE CHASE IS THERE SIMPLY TO GIVE BUTCH SOMETHING LIFETHREATENING TO DO WHILE WE GET TO KNOW HIM HE'S THE KIND OF CHARACTER THAT CAN BE SO COMPELLING IN MOVIES SO REPELLENT IN LIFE IN MOVIES IT IS EASIER TO ACCEPT THE CRUEL BEHAVIOR OF A HARD CRIMINAL ONCE WE'VE LEARNED ABOUT THE LIFE THAT HAS MADE HIM HARD EASIER THAT IS IF THE PART IS WELLWRITTEN AND WELLPLAYED THE PART OF BUTCH HAYNES INDEED ALL OF A PERFECT WORLD IS EXCEPTIONALLY WELLWRITTEN SCREENWRITER JOHN LEE HANCOCK GREW UP IN TEXAS WHICH MUST EXPLAIN IN PART THE AUTHENTIC FEELING OF THE MOVIE'S SMALL TEXAS TOWNS AND ROADS AND ESPECIALLY THE TALK THE MOVIE IS SET IN 1963 JUST AS PRESIDENT KENNEDY IS ABOUT TO MAKE THAT LAST FATAL TRIP TO DALLAS THE PRESIDENTIAL VISIT IS MENTIONED ONLY ONCE THOUGH IT SERVES A CRUCIAL FUNCTION BY ESTABLISHING THE MOVIE'S TIME FRAME MORE IMPORTANTLY THE JFK VISIT AND THE PORTENT OF HIS ASSASSINATION SET THE MOVIE'S TONE MR HANCOCK SEEMED TO FEEL FREE WORKING IN THIS EARLIER TIME PERIOD TO HAVE A CONFIDENCE IN HIS CHARACTERS THAT HAS BECOME INCREASINGLY RARE IN THE MOVIES THEY DON'T SEEM TO BE MAKING ANY SOCIOLOGICAL POINT OR CONFORMING TO SOMEBODY'S MARKETING PLAN HE HAS ELEGANTLY USED THIS CHASE STORY TO EVOKE MUCH FEELING ABOUT A LOSS OF INNOCENCE IN THE BROADEST SENSE WHICH BRINGS ME TO MR COSTNER A PRODUCT OF PERHAPS THE MOST CYNICAL ERA IN MOVIEMAKING EVER HE IS AN EASY MOVIE STAR TO DISLIKE IT'S HARD TO FORGET THE WAY HE SO TENDERLY LIT HIS OWN BACKSIDE WHEN HE DIRECTED HIMSELF IN DANCES WITH WOLVES THERE'S SOMETHING EMPTY ABOUT HIM YOU LOOK IN HIS EYES AND YOU SEE EYEBALLS BUT HE IS UNDENIABLY A MOVIE STAR SO WHEN YOU CAN'T SEE INTO HIS EYES HE CAN SEEM NOT EMPTY BUT IMPASSIVE HIS FLAT VOICE SOUNDS NOT BANAL BUT SINCERE HIS UNCOMPLICATED GOOD LOOKS ARE NOT BORING BUT SWEETLY APPEALING HE DOESN'T CHANGE WHAT HE DOES THAT MUCH WHAT CHANGES ARE THE SCRIPTS AND THE DIRECTORS JUDGING FROM A PERFECT WORLD CLINT EASTWOOD IS THE PERFECT DIRECTOR FOR KEVIN COSTNER FOR EVEN IF MR COSTNER'S BUTCH HAYNES ISN'T AS INTERESTING AS HE MIGHT HAVE BEEN HE IS QUITE MOVING AND QUITE CREDIBLE AS THE TROUBLED MAN WHO HAS ONLY A LOOSE LID CAPPING HIS TROUBLES HE IS ALSO GENEROUS TO HIS YOUNG COSTAR TJ LOWTHER A MARVELOUSLY SOBERFACED KID WITH NONE OF THE SELFSATISFIED TICS SO COMMON AMONG HOLLYWOOD CHILDACTORS MR EASTWOOD NO SLOUCH HIMSELF WHEN IT COMES TO PLAYING IMPASSIVE MEN ALSO STARS IN THE PICTURE HE PLAYS THE AGING LAWMAN TRACKING BUTCH WITH THE WORLDWEARINESS HE'S BEEN PERFECTING IN HIS LAST FEW PICTURES HIS TEXAS RANGER MAY HAVE ONCE BEEN THE LONE RIDER NOW HE'S SOFTENED HE'S STILL HIS OWN MAN BUT HE'S WILLING TO LET THE GIRL CRIMINOLOGIST ASSIGNED TO THE CASE LAURA DERN PROVE HIM WRONG MOSTLY THOUGH HE HAS KEPT THE FOCUS ON MR COSTNER THIS IS NOT JUST MODEST IT IS CORRECT IN KEEPING WITH HIS PRIMARY ROLE AS DIRECTOR HE GIVES THE PICTURE AN EASY SPIRIT A WAYWARD MISCHIEVOUSNESS THAT SEEMS SURPRISING AFTER THE SOBERLY MYTHOLOGICAL UNFORGIVEN HE HAS A WONDERFUL EYE AND NOT SURPRISINGLY THE MOVIE IS PACED AND FRAMED LIKE A WESTERN NOTHING IS RUSHED AND THE PICTURE HAS A CLASSIC WESTERN'S FEELING OF INNOCENCE IN ALL KINDS OF WAYS WITHOUT LOSING ITS MODERN APPEARANCE THE RANGER AND HIS ASSISTANTS ARE GIVEN A STATEOFTHEART TRAILER IN WHICH TO TRACK THE ESCAPED CONVICT THIS AIRSTREAM BECOMES A POINT OF COMIC RELIEF THE UNWIELDY LOSER IN A BIG CHASE SCENE AS AS WELL AS A GENTLE METAPHOR FOR THE LIMITS OF PROGRESS HE HAS ALSO KEPT THE PICTURE'S VIOLENCE TO A MINIMUM MOST OF THE CARNAGE AND THERE ISN'T MUCH TAKES PLACE OFFSCREEN MY FAVORITE MOVIE CRITIC IS LIBBY GELMANWAXNER WHO REVIEWS FILMS FOR PREMIERE MAGAZINE YOU MAY NOT LEARN MUCH ABOUT MOVIES FROM LIBBY BUT YOU LEARN A LOT ABOUT LIBBY A JEWISHAMERICAN PRINCESS WITH AN ORTHODONTIST HUSBAND AND THE KIND OF RELATIVES WHO KEEP THERAPISTS IN BUSINESS RECENTLY FOR EXAMPLE LIBBY DESCRIBED HER AUNT ROSE THE FIRST WOMAN TO WARN HER CHILDREN NOT TO GO TO THE MOVIES UNTIL AT LEAST AN HOUR AFTER EATING AUNT ROSE HAD HEARD ABOUT A NEIGHBOR BOY WHO HAD SWALLOWED AN ENTIRE POTATO PANCAKE WITHOUT CHEWING WASHED IT DOWN WITH A BOTTLE OF YOOHOO DID NOT WIPE HIS MOUTH WITH HIS NAPKIN RAN TO THE LOEWS BABYLON AND SAW MICKEY ROONEY DRESSED AS CARMEN MIRANDA DEVELOPED A STOMACH CRAMP AND DIED WHEN I HEARD LIBBY WAS A GUEST AT A PARTY I WAS ATTENDING A COUPLE OF YEARS AGO I INSISTED ON MEETING HER IT WASN'T EXACTLY THE THRILL I'D EXPECTED BUT A THRILL NEVERTHELESS LIBBY TURNED OUT TO BE A GUY PAUL RUDNICK WHO HAS RECENTLY BECOME FAMOUS AS THE WRITER OF A COMEDY ABOUT ROMANCE IN THE AGE OF AIDS CALLED JEFFREY NOW I HAVE YET ANOTHER REASON TO FEEL WARMLY TOWARD LIBBY IN HER GUISE AS MR RUDNICK SHE HAS WRITTEN THE SCREENPLAY FOR ADDAMS FAMILY VALUES A MOVIE I WAS NOT LOOKING FORWARD TO SEEING SINCE I DIDN'T MUCH LIKE ITS PREQUEL THE ADDAMS FAMILY I REALIZE THAT THE PROBLEM WITH THE FIRST FILM WAS THAT MR RUDNICK ONLY HAD A SMALL ROLE IN WRITING THE SCRIPT THE CAST WAS AMUSING AND SO WERE THE CLEVER SPECIAL EFFECTS BUT THEY WEREN'T ENOUGH FOR ME MR RUDNICK WAS GIVEN FULL SCRIPTWRITING AUTHORITY THIS TIME WHAT A GOOD IDEA ADDAMS FAMILY VALUES HAS THE WITTY CAST AND SPECIAL EFFECTS OF ITS PREDECESSOR AND A PLOT THE PLOT BRINGS A NEW BABY TO THE ADDAMS'S AND A BLONDE BUXOM NANNY NAMED DEBBIE JELINSKY TO TAKE CARE OF HIM THIS JEWISHAMERICAN PRINCESS A RUDNICK SPECIALTY TURNS OUT TO BE A WICKED WITCH IT'S ALL VERY FUNNY VIDEO TIP MAYBE I WAS THINKING ABOUT PAUL NEWMAN BECAUSE I RECENTLY INSTALLED CABLETV IN MY HOME ON MY VERY FIRST OUTING INTO CABLELAND I DROPPED IN ON COOL HAND LUKE JUST AS LUKE WAS ABOUT TO START EATING THE EGGS I COULDN'T HELP IT EVEN THOUGH I'D SEEN THE MOVIE A HUNDRED TIMES AND THE SCENE A THOUSAND TIMES I SAT THERE WATCHING COMPLETELY MESMERIZED WE ALL KNOW WHERE PAUL NEWMAN HAS BEEN SINCE THEN BUT HAVE YOU EVER THOUGHT ABOUT STUART ROSENBERG THE MAN WHO DIRECTED COOL HAND LUKE HIS VARIED CAREER HAS INCLUDED BRUBAKER THE VOYAGE OF THE DAMNED AND AMITYVILLE HORROR 9312020061 931202 BUSINESS BRIEF MICROGRAFX INC FISCAL THIRDQUARTER LOSS EXPECTED ON A LARGE CHARGE MICROGRAFX INC SAID IT EXPECTS TO REPORT A NET LOSS OF ABOUT 1 MILLION DURING ITS FISCAL THIRDQUARTER AS A RESULT OF A RESTRUCTURING OF ITS EUROPEAN OPERATIONS THE RICHARDSON TEXAS SOFTWARE COMPANY SAID THE EXPECTED LOSS IS THE RESULT OF A PRETAX CHARGE OF 38 MILLION RELATED TO THE CLOSURE OF ITS COPENHAGEN SUBSIDIARY MICROGRAFX SAID THE CHARGE 15 MILLION OF WHICH WILL BE NONCASH IS EXPECTED TO RESULT IN LOWER OPERATING COSTS OVER THE NEXT THREE YEARS MICROGRAFX SAID IT WILL NOW CENTRALIZE EUROPEAN MARKETING IN MUNICH GERMANY FOR LAST YEAR'S FISCAL THIRD QUARTER ENDED DEC 31 MICROGRAFX REPORTED NET INCOME OF 13 MILLION OR 15 CENTS A SHARE ON REVENUE OF 179 MILLION SEPARATELY THE COMPANY SAID IT PLANS TO CREATE A NEW ATHOME PRODUCTS DIVISION AS IT ATTEMPTS TO TAP THE HOME COMPUTER MARKET THE COMPANY WHICH HAS TRADITIONALLY FOCUSED ON BUSINESS GRAPHICS PROGRAMS SAID ITS HOMEMARKET PRODUCT PLANS WILL BE ANNOUNCED IN DETAIL BY MARCH 9312020059 931202 LEISURE & ARTS BOOKSHELF THE COST OF ENTITLEMENTS BY CHARLES W KADLEC PETER G PETERSON'S FACING UP HOW TO RESCUE THE ECONOMY FROM CRUSHING DEBT & RESTORE THE AMERICAN DREAM SIMON & SCHUSTER 411 PAGES 22 IS AN IMPORTANT BOOK BECAUSE IT BEGINS TO MAKE COMPREHENSIBLE AND UNDERSTANDABLE THE DIMENSIONS AND IMPLICATIONS OF THE FEDERAL BUDGET DEFICIT OVER THE NEXT 10 YEARS BY SHOWING THE MAGNITUDE OF THE GROWING GAP BETWEEN WHAT THE GOVERNMENT HAS PROMISED IN THE FORM OF FREE ENTITLEMENTS FROM MEDICARE AND SOCIAL SECURITY TO AID TO FAMILIES WITH DEPENDENT CHILDREN AND FOOD STAMPS AND THE REVENUES IT HAS TO FULFILL THOSE PROMISES MR PETERSON LEADS US TO AN INESCAPABLE CONCLUSION THE DEFINING POLITICAL ISSUE OF THE NEXT DECADE WILL BE SORTING OUT WHAT PROMISES TO BREAK AND HOW TO BREAK THEM WITH THE LEAST DISRUPTION TO OUR SOCIETY WHAT ABOUT CUTTING DEFENSE WE COULD SHUT DOWN THE PENTAGON TOMORROW AND STILL NOT BALANCE THE BUDGET HE CLAIMS HOW ABOUT VICE PRESIDENT GORE'S MISSION TO REINVENT GOVERNMENT DOESN'T HELP MUCH EITHER HE SAYS ELIMINATE ALL DISCRETIONARY SPENDING AND THE BUDGET IS STILL OUT OF BALANCE THE UNCOMFORTABLE TRUTH THAT MR PETERSON SHOWS IS THAT ENTITLEMENTS NOT ONLY DOMINATE TODAY'S BUDGET ACCOUNTING FOR 50 OF CURRENT EXPENDITURES BUT THEY ALSO REPRESENT A COMMITMENT TO FUTURE SPENDING INCREASES OVER THE NEXT 10 YEARS FEDERAL GOVERNMENT EXPENDITURES ARE PROJECTED TO INCREASE 80 TO 27 TRILLION BUT ENTITLEMENTS WILL MORE THAN DOUBLE ACCOUNTING FOR 65 OF THE INCREASE AND WHEN COMBINED WITH INTEREST EXPENSE ON THE GROWING FEDERAL DEBT ACCOUNT FOR 88 OF THE PROJECTED INCREASE IN FEDERAL SPENDING CAN WE BALANCE THE BUDGET BY TAXING THE RICH ONLY IF WE ARE PREPARED TO TAX AWAY ALL THE TAXABLE INCOME OF EVERYONE WITH MORE THAN 175000 OF ADJUSTED GROSS INCOME HE ARGUES ALTERNATIVELY BALANCING THE BUDGET WOULD REQUIRE DOUBLING THE INCOME TAXES ON EVERYONE WITH INCOMES OF 50000 OR MORE MR PETERSON SHOWS THAT BLAMING THE POOR WON'T DO EITHER BASED ON SOME ROUGH CALCULATIONS 43 OF ALL ENTITLEMENTS EXPENDITURES GO TO THOSE WITH INCOMES BETWEEN 30000 AND 200000 A YEAR AS IT TURNS OUT THE MIDDLE CLASS HAS PROMISED ITSELF MORE THAN IT CAN AFFORD AND PROBABLY MORE THAN ITS CHILDREN WILL BE WILLING TO PAY IN EVER HIGHER PAYROLL TAXES ACCORDING TO MR PETERSON THE BUDGET DEFICIT REFLECTS A PROFOUND IMBALANCE IN GOVERNMENT'S ALLOCATION OF RESOURCES BETWEEN GENERATIONS AND BETWEEN THOSE RETIREES WITH INCOME ABOVE THE MEDIAN OF 35000 AND THE WORKING POOR THE FEDERAL GOVERNMENT SPENDS 11 TIMES MORE PER CAPITA ON OLD PEOPLE THAN IT INVESTS IN CHILDREN NOT COINCIDENTALLY THE OVERALL POVERTY RATE AMONG AMERICANS UNDER AGE SIX IS NEARLY THREE TIMES THE RATE AMONG THOSE OVER AGE 65 THIS EMBRACE OF AN ENTITLEMENT ETHIC IN PLACE OF THE TRADITIONAL ENDOWMENT ETHIC IS A DIRECT THREAT TO FUTURE GENERATIONS OUR ECONOMIC STRENGTH AND THE FABRIC OF OUR SOCIETY SO THE LAST HALF OF FACING UP IS DEVOTED TO THE PETERSON BUDGET ACTION PLAN 24 PROPOSALS THAT WOULD REDISTRIBUTE INCOME FROM THE MIDDLE CLASS AND WEALTHY TO THE POOR WHILE BRINGING THE BUDGET INTO BALANCE BY THE YEAR 2000 AS HE WARNS JUST ABOUT EVERYONE WILL DISAGREE WITH SOME PART OF HIS PROGRAM CERTAINLY MR PETERSON'S CALL FOR AN AFFLUENCE TEST FOR SOCIAL SECURITY AND MEDICARE RETIREMENT BENEFITS BREAKS NEW GROUND UNDER THIS PLAN AS A RETIREE'S INCOME INCLUDING SOCIAL SECURITY AND MEDICARE BENEFITS RISES ABOVE 35000 UP TO 85 OF THESE BENEFITS WOULD BE GRADUALLY TAKEN AWAY EFFECTIVELY PRODUCING AN ADDITIONAL TAX OF UP TO 88 ON THE INDIVIDUAL'S INCOME ABOVE 35000 THIS TAX WOULD SAVE 71 BILLION ANNUALLY BY THE YEAR 2000 THE PETERSON PLAN ALSO WOULD INCREASE FEDERAL INVESTMENTS BY 100 BILLION A YEAR AND IMPOSE A 5 NATIONAL SALES TAX AND A 50CENTPERGALLON GASOLINE TAX THE CENTRAL FLAW IS MR PETERSON'S ASSUMPTION THAT PEOPLE WILL NOT REARRANGE THEIR AFFAIRS IN THE FACE OF SUCH CHANGES FOR EXAMPLE THE AFFLUENCE TEST TAX ON RETIREE'S INVESTMENT INCOME WOULD REDUCE SAVINGS BELOW THE ALREADY LOW LEVELS THAT HE RAILS AGAINST WHILE INCREASING THE PRESSURE FOR MORE GOVERNMENT HANDOUTS THE 255 BILLION IN HIGHER ANNUAL TAXES HE PROPOSES WOULD THROW PEOPLE OUT OF WORK SHRINK THE TAX BASE AND RISK A FURTHER INCREASE IN THE BUDGET DEFICIT WHAT IS MISSING FROM THE PETERSON PLAN ARE POLICIES THAT WOULD EXPAND THE TAX BASE THROUGH INCREASED PRIVATE SECTOR JOBS INCOMES AND PROFITS HE POINTS OUT THAT IF THE AMERICAN ECONOMY HAD CONTINUED TO GROW AT ITS LONG RUN PACE FROM 1973 FORWARD THEN BY 1991 ANNUAL FEDERAL REVENUES AT CURRENT TAX RATES WOULD HAVE BEEN 370 BILLION HIGHER GENERATING A BUDGET SURPLUS OF MORE THAN 100 BILLION IRONICALLY HE IS MOST CRITICAL OF THE REDUCTIONS IN MARGINAL TAX RATES THAT RESTORED HISTORICAL GROWTH RATES UNDER PRESIDENT REAGAN HE DOES ADVOCATE INDEXATION OF THE CAPITAL GAINS TAX BUT THERE IS NO MENTION OF THE IMPORTANCE OF SOUND MONEY FOR KEEPING INTEREST RATES LOW AND STABLE RELIEF FROM EGREGIOUS REGULATIONS OR UNDERSTANDING OF THE NEGATIVE CONSEQUENCES OF RAISING MARGINAL TAX RATES IN SPITE OF THESE FLAWS FACING UP IS A USEFUL STARTING POINT IN A NATIONAL DISCUSSION OVER RESTORING BALANCE TO THE FEDERAL GOVERNMENT'S FISCAL AFFAIRS THE TASK IS NOW FOR OTHERS TO BUILD ON MR PETERSON'S WORK MR KADLEC IS A MANAGING DIRECTOR OF J & W SELIGMAN AND COMPANY INC A NEW YORK INVESTMENT MANAGER 9312020058 931202 TECHNOLOGY & HEALTH SERIES OF DEALS FOR CABLETV DECODERS SHOWS INDUSTRY HASN'T A STANDARD YET BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL ANAHEIM CALIF A CLOSELY WATCHED BATTLE FOR THE TV SETTOP IS GETTING HOTTER HEWLETTPACKARD CO THE BIG COMPUTER AND INSTRUMENT MAKER YESTERDAY ANNOUNCED ITS FIRST ORDER FOR A NEW GENERATION OF SETTOP CABLE DECODER BOXES TELECOMMUNICATIONS INC THE NO 1 CABLE OPERATOR SAID IT WILL BUY ABOUT 100000 UNITS FOR USE IN TCI'S CONVERSION TO DIGITAL SYSTEMS OVER THE NEXT TWO YEARS BUT TCI IS HEDGING ITS BETS IT ALSO ANNOUNCED A DEAL TO BUY 300000 DIGITAL SETTOP TERMINALS FROM SCIENTIFICATLANTA INC A MAJOR MAKER OF CONVENTIONAL CABLE DECODERS BASED IN NORCROSS GA IN ANOTHER DEVELOPMENT AT THE WESTERN CABLE SHOW HERE KALEIDA LABS INC SAID IT HAS DEVELOPED A SPECIAL CHIP THAT WILL ALLOW FUTURE SETTOP DECODERS TO DISPLAY COMPLEX GRAPHICS AT VERY HIGH SPEEDS THE CHIP WILL BE MANUFACTURED BY MOTOROLA INC AND USED BY SCIENTIFICATLANTA IN SETTOP DEVICES EXPECTED BY 1995 THE THREE COMPANIES HAD ALREADY ANNOUNCED PLANS TO WORK TOGETHER BUT SEMICONDUCTOR DEVELOPMENT WORK BY KALEIDA A SOFTWARE VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC HAD NEVER BEEN DISCLOSED THE DEVELOPMENTS SUGGEST THAT THE INDUSTRY IS FAR FROM STANDARDIZING ON A SINGLE TECHNOLOGY FOR DECODERS WHICH ARE A KEY COMPONENT AS TODAY'S CABLE SYSTEMS EVOLVE INTO COMPUTERIZED SYSTEMS THAT CAN SORT THROUGH INTERACTIVE TV MOVIES ON DEMAND AND NEW GAME OFFERINGS TCI IN PARTICULAR SEEMS BENT ON MAKING SURE THAT IT HAS SEVERAL SUPPLIERS THAT WILL BE COMPETING TO KEEP PRICES DOWN WE THINK THE DEMAND FOR THE DEVICES WILL FAR EXCEED THE AVAILABLE SUPPLY IN THE NEXT FEW YEARS SO WE WANT TO GET MORE PLAYERS IN THE GAME SAID JOHN MALONE TCI'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW NO FINANCIAL TERMS WERE DISCLOSED FOR THE ORDERS TO HP OR SCIENTIFICATLANTA WHICH ARE SMALL COMPARED WITH THE UNIT VOLUMES EXPECTED WHEN CABLE SYSTEMS MOVE TOWARD FULLSCALE DEPLOYMENT OF DIGITAL TECHNOLOGY BUT THEY NONETHELESS REFLECT A SEEMING END TO ONE TECHNICAL DISPUTE THAT HAS BEDEVILED THE INDUSTRY GENERAL INSTRUMENT CORP THE NO 1 DECODER MAKER DECIDED FOR THE FIRST TIME TO LET THE TWO COMPETITORS LICENSE A TECHNOLOGY CALLED DIGICIPHER THAT IS USED TO COMPRESS VIDEO SIGNALS AND MAKE SURE UNAUTHORIZED CUSTOMERS CAN'T VIEW PROGRAMS THEY DID NOT PURCHASE HP AND SCIENTIFICATLANTA SAID THEY WILL USE GENERAL INSTRUMENT CHIPS THAT CAN USE DIGICIPHER OR ANOTHER COMPRESSION SCHEME CALLED MPEG2 GENERAL INSTRUMENT WHICH ALREADY WON AN ORDER FOR NEXTGENERATION DECODERS FROM TCI HAD BEEN CRITICIZED IN THE PAST FOR KEEPING THE DIGICIPHER TECHNOLOGY PROPRIETARY WHAT WE HAVE NOW IS AN ACKNOWLEDGEMENT THAT THIS TECHNOLOGY IS A STANDARD SAID HAL KRISBERGH PRESIDENT OF GENERAL INSTRUMENT'S JERROLD COMMUNICATIONS DIVISION FOR HP THE TCI ORDER IS A KEY ENDORSEMENT AFTER TWO YEARS PURSUING THE INTERACTIVE TELEVISION MARKET THE COMPANY IS STILL NOT GIVING AWAY DETAILS OF ITS NEW DECODERS WEBB MCKINNEY HP'S GENERAL MANAGER OF INTERACTIVE TELEVISION APPLIANCES SAID THE COMPANY IS DETERMINED TO KEEP ITS OPTIONS OPEN AND BUILD DEVICES USING WHATEVER TECHNOLOGIES EMERGE AS A STANDARD 9312020057 931202 TECHNOLOGY & HEALTH VIDEOTOHOME PLANS OUTLINED BY BELL ATLANTIC BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELL ATLANTIC CORP HOT OFF ITS PLANNED ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC SAID IT WILL DELIVER MULTIMEDIA SERVICES TO MORE THAN ONE MILLION HOMES BY 1995 AND MORE THAN EIGHT MILLION BY 2000 THE PHILADELPHIABASED BABY BELL'S ANNOUNCEMENT IS THE FIRST TIME BELL ATLANTIC HAS GIVEN SPECIFIC TARGETS FOR ITS VIDEOTOTHEHOME PROJECT UNTIL A MONTH AGO IT HAD VAGUELY TARGETED ABOUT 100000 HOMES AND NEW JERSEY BY THE END OF 1994 TO BACK UP ITS PLANS THE COMPANY SAID IT WILL ASK SUPPLIERS FOR PROPOSALS ON A COMPREHENSIVE NETWORK PLAN TO BE DIVVIED UP AMONG SEVERAL MAKERS THESE COMPANIES WILL BE ASKED TO PROVIDE SWITCHING EQUIPMENT AND FIBEROPTIC TRANSMISSION GEAR INCLUDING LASER EQUIPMENT TO SHOOT THE SIGNALS TO THE HOME A SPOKESMAN SAID THE SUPPLIERS WILL BE CHOSEN IN EARLY 1994 THIS IS A MAJOR EXPANSION OF OUR ORIGINAL PLAN AND WE INTEND TO BE FIRST TO MARKET WITH THESE SERVICES A SPOKESMAN SAID BELL ATLANTIC HAS SAID THAT IT WILL SPEND ABOUT 15 BILLION OVER THE NEXT 10 YEARS TO MAKE ITS PHONE NETWORKS AND THE CABLE NETWORKS OF TCI COMPATIBLE FOR SENDING ALL KINDS OF VOICE DATA AND VIDEO TRAFFIC BELL ATLANTIC PLANS TO RUN THE SERVICES TO 250000 HOMES IN 1994 ANOTHER ONE MILLION IN 1995 AND 15 MILLION ADDITIONAL HOMES A YEAR THROUGH 1999 AREAS FIRST TARGETED FOR SERVICES INCLUDE ALEXANDRIA AND NEIGHBORING AREAS OF NORTHERN VIRGINIA AND MONTGOMERY COUNTY MD SEVERAL NEW JERSEY TOWNS AND THE METROPOLITAN AREAS OF BALTIMORE PHILADELPHIA PITTSBURGH AND NORFOLK VA THE SERVICES WILL COME IN STAGES INCLUDING BASIC CABLE TELEVISION AND VIDEOONDEMAND SERVICES THAT PEOPLE CAN FETCH AT THE FLICK OF A REMOTECONTROL DEVICE AFTER 1995 THE COMPANY PLANS TO OFFER NUMEROUS INTERACTIVE SERVICES HOME SHOPPING VIDEO GAMES EDUCATIONAL PROGRAMS AND OTHER TRANSACTIONAL SERVICES THE SPOKESMAN SAID BELL ATLANTIC SAID ABOUT 10 BILLION TO 11 BILLION OF ITS CAPITAL PLAN WILL BE SPENT IN ITS SEVENSTATE MIDATLANTIC TERRITORY WITH THE REMAINING 4 BILLION EARMARKED FOR TCI SYSTEMS THE PROJECT WILL BE INTERNALLY FUNDED WITH NO PLANNED INCREASE IN PHONE RATES THE SPOKESMAN SAID 9312020056 931202 BUSINESS BRIEF HICKS MUSE & CO BERG ELECTRONICS UNIT TO BUY AT&T'S CONNECTOR BUSINESS BUYOUT FIRM HICKS MUSE & CO SAID ITS BERG ELECTRONICS UNIT HAS AGREED TO BUY AMERICAN TELEPHONE & TELEGRAPH CO'S CONNECTOR BUSINESS HICKS ACQUIRED THE ELECTRICALCONNECTOR MAKER EARLIER THIS YEAR TERMS OF THE ACCORD WEREN'T DISCLOSED AT&T'S CONNECTOR BUSINESS WHICH IS PART OF ITS AT&T MICROELECTRONICS UNIT HAS ANNUAL REVENUE OF ABOUT 100 MILLION WHILE BERG HAS ABOUT 400 MILLION BOTH COMPANIES MAKE CONNECTORS FOR TELECOMMUNICATIONS AND COMPUTER EQUIPMENT MOST OF THE AT&T OPERATION'S CUSTOMERS ARE OTHER AT&T UNITS HICKS MUSE BASED IN DALLAS PAID 370 MILLION TO ACQUIRE ST LOUISBASED BERG FROM DUPONT CO WITH THE INTENTION OF DOUBLING ITS SIZE THROUGH ACQUISITIONS AND INTERNAL GROWTH WITHIN TWO YEARS IF HICKS FOLLOWS ITS USUAL PRACTICE THE FIRM WOULD THEN BE LOOKING TO TAKE THE COMPANY PUBLIC FOR MUCH MORE THAN THE SUM OF ITS PARTS AT&T DECIDED TO SELL ITS CONNECTOR BUSINESS TO BERG BECAUSE THE TELECOMMUNICATIONS GIANT WAS UNWILLING TO DEVOTE THE RESOURCES NEEDED TO CONDUCT ADEQUATE RESEARCH AND DEVELOPMENT IN THE AREA SAID CURTIS J CRAWFORD PRESIDENT OF AT&T MICROELECTRONICS THE DEAL WOULD BOOST BERG TO NO 3 IN THE WORLDWIDE CONNECTOR MARKET WITH A ROUGHLY 45 SHARE 9312020054 931202 BUSINESS BRIEF INTERNATIONAL PAPER CO MILL TO BEGIN MAKING PAPER OF POSTCONSUMER' MATERIAL INTERNATIONAL PAPER CO SAID ITS LOCK HAVEN PA MILL WILL BEGIN PRODUCING A HIGHGRADE PAPER CONTAINING AT LEAST 50 POSTCONSUMER RECYCLED MATERIAL THE PLANT USES TECHNOLOGY LICENSED FROM A GERMAN COMPANY TO PRODUCE THE PAPER WHICH CAN BE USED IN HIGHSPEED COPIERS AND FOR HIGHQUALITY PRINTING THE PLANT WILL PRODUCE ABOUT 90000 TONS A YEAR OF THE RECYCLED PAPER WHILE ALL OF THE PAPER CONTENT WILL BE RECYCLED AT LEAST HALF WILL COME FROM CONSUMERDISCARDED MATERIAL SUCH AS MAGAZINES NEWSPAPERS AND CATALOGS THE REMAINDER IS MATERIAL THAT HAS BEEN DISCARDED BY PRINTING PLANTS OR PUBLISHERS BUT NOT USED BY CONSUMERS RECENTLY THE CLINTON ADMINISTRATION SAID IT WOULD REQUIRE THE FEDERAL GOVERNMENT TO PURCHASE PRINTING AND WRITING PAPER WITH AT LEAST 20 POSTCONSUMER MATERIAL BY THE END OF 1994 9312020053 931202 DIVIDEND NEWS INFORMATION INTERNATIONAL INC INFORMATION INTERNATIONAL INC CULVER CITY CALIF SAID ITS BOARD SUSPENDED THE SEMIANNUAL SHAREHOLDER DIVIDEND BECAUSE THE CASH IS NEEDED FOR OPERATIONS THE SEMIANNUAL DIVIDEND HAD BEEN 11 CENTS A SHARE FOR MANY YEARS A SPOKESMAN SAID THE LAST PAYOUT WAS IN JULY THE COMPANY MAKES COMPUTER SYSTEMS THAT AUTOMATE MULTIMEDIA PRODUCTION AND PUBLISHING 9312020052 931202 TAXABLE MONEY FUND YIELDS ROSE IN WEEK WHILE ASSETS SLIPPED NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE IN THE LATEST WEEK WHILE ASSETS FELL IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EDGED UP TO 273 FROM 270 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS MEANWHILE ASSETS OF 626 TAXABLE FUNDS ONE FEWER THAN IN THE PREVIOUS WEEK DROPPED BY 1043 BILLION TO 47813 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 881 BILLION OF THE OUTFLOW WHILE INDIVIDUAL INVESTORS TOOK OUT 162 BILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE MOSTLY INSTITUTIONAL OUTFLOW TO HIGHER YIELDS ON DIRECT INVESTMENTS IN TREASURY BILLS AND OTHER SHORTTERM SECURITIES THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS INCHED UP TO 269 FROM 267 WHILE THE 30DAY SIMPLE YIELD CREPT TO 267 FROM 266 THE 30DAY COMPOUND YIELD ALSO ROSE A BIT TO 271 FROM 270 THE AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS ASSETS OF 335 TAXEXEMPT FUNDS WERE INCREASED BY 5531 MILLION TO 10747 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY WAS SHORTENED BY TWO DAYS TO 64 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9312020051 931202 BUSINESS BRIEF BELL ATLANTIC CORP PURCHASE OF INITIAL INTEREST IN PHONE FIRM IS COMPLETED BELL ATLANTIC CORP SAID IT COMPLETED THE PURCHASE OF AN INITIAL 23 STAKE IN GRUPO IUSACELL SA DE CV OF MEXICO CITY FOR ABOUT 520 MILLION UNDER THE AGREEMENT PHILADELPHIABASED BELL ATLANTIC BOUGHT MORE THAN 205 MILLION SHARES OF NEWLY ISSUED IUSACELL STOCK THE COMPANY SAID PREVIOUSLY IT PLANS TO INVEST UP TO 104 BILLION IN THE MEXICAN TELECOMMUNICATIONS COMPANY AND ACQUIRE A 42 INTEREST A BELL ATLANTIC SPOKESWOMAN SAID THE REMAINDER OF THE PURCHASE WILL BE MADE IN ABOUT 12 TO 18 MONTHS WHEN THE COMPANY WILL BUY SHARES DIRECTLY FROM THE PERALTA FAMILY WHICH CONTROLS IUSACELL PROCEEDS FROM THE INITIAL INVESTMENT WILL FUND DEVELOPMENT OF IUSACELL'S TELECOMMUNICATIONS BUSINESS AND REPAY DEBT IUSACELL IS A CLOSELY HELD COMPANY WITH OVER 120000 CELLULAR PHONE CUSTOMERS 9312020050 931202 REVIEW & OUTLOOK EDITORIAL WHATEVER HAPPENED TO JAPAN INC ON DEC 2 1989 HERE IS WHAT THE HEADLINE ON PAGE ONE OF THE ASIAN WALL STREET JOURNAL READ TOKYO SHARE PRICES SOAR DESPITE OMENS THAT DAY THE NIKKEI CLOSED AT 3726979 THOSE WERE HEADY DAYS INDEED WHEN THE JAPANESE COULD BUY GOLF COURSES VAN GOGHS AND ROCKEFELLER CENTER FOR UNTHINKABLE PRICES THEY COULD EVEN EXPLAIN WHY PRICEEARNING RATIOS OF 170PLUS MADE SENSE THE JAPAN INC COLOSSUS BESTRODE THE EARTH SCATTERING EXPORTS WHILE THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MITI BLUSHED IN THE GLARE OF THE AWE WITH WHICH IT WAS REGARDED BUT A FUNNY THING HAPPENED ON THE WAY TO WORLD ECONOMIC DOMINATION SO OFTEN PREDICTED BY WORRIED AMERICAN JAPAN EXPERTS THE BOOM BECAME A BUST THE HEADLINES NOW ARE OF BANKRUPTCY CUTBACKS AND FALLING INDUSTRIAL PRODUCTION AND CONSUMER SPENDING THE ONLY THING RISING SEEMS TO BE THE NUMBER OF UNEMPLOYED THIS WEEK'S UNRULY STOCK MARKET IS THE LATEST EVIDENCE THAT THE MODEL OF JAPAN INCASJUGGERNAUT WAS FLAWED THE STRUTS THAT SUPPORTED THIS BRITTLE CONSTRUCT HAVE WEAKENED STEADILY ONE OF THESE STRUTS WAS THE KEIRETSU SYSTEM OF CROSSSHAREHOLDINGS AND OBLIGATIONS AMONG BANKS AND BORROWERS MANUFACTURERS AND RETAILERS THIS SYSTEM HAS BEGUN TO DEGENERATE INTO A TANGLE OF DROWNING SWIMMERS DRAGGING EACH OTHER DOWN WITH THE STOCK MARKET AT LESS THAN HALF ITS 1989 PEAK AND JAPANESE BANKS SITTING ON PERHAPS 300 BILLION IN BAD DEBT THE KEIRETSU SYSTEM IS BEGINNING TO COME UNGLUED BANKS ARE SELLING CORPORATE STOCKS TO WRITE OFF BAD LOANS SO ARE BORROWERS WHO NEED TO PAY BACK LOANS THAT OFTEN HAD STOCK AS COLLATERAL WITH CORPORATE PROFITS DROPPING FOR THE FOURTH STRAIGHT YEAR THERE IS ALSO A TEMPTATION TO TAKE WHATEVER PROFITS ONE CAN AND RUN WITH THEM CREDITORS WITH STAKES IN BANK STOCKS CAN SEE THAT WHILE THE NIKKEI HAS BEEN BOBBING UP AND DOWN THOUGH MOSTLY DOWN BANK STOCKS HAVE BEEN PLUMMETING CERTAINLY RELATIONS BETWEEN MAIN BANKS AND ASSOCIATED CORPORATIONS REMAIN INTIMATE BUT COMPANIES ARE TAKING A COLDER VIEW OF SECOND AND THIRDTIER BANKS MORE IMPORTANT SAYS AKIO MIKUNI HEAD OF JAPAN'S ONLY INDEPENDENT CREDIT RATING AGENCY FOR THE FIRST TIME SINCE THE WAR THERE IS EVIDENCE THAT JAPAN'S CITY BANKS ARE SELLING STOCKS OUTRIGHT THE SYSTEM OF CROSSSHAREHOLDING IS ERODING HE SAYS IT'S PREMATURE TO SAY IT WILL END IT'S STILL VERY MUCH THERE BUT THIS IS THE BEGINNING OF THE ENDING PROCESS ANOTHER STRUT IN THE JAPAN INC MODEL WAS THE IRON TRIANGLE OF LIBERAL DEMOCRATIC PARTY POLITICIANS BUREAUCRATS AND BIG BUSINESS THIS IS NOW AT BEST AN ALUMINUM FOIL TRIANGLE THE RULING COALITION GOVERNMENT OPPOSES ABOUT EVERYTHING THE LDP STOOD FOR AND HAS FEW OF THE PERSONAL LINKS NECESSARY TO CUT DEALS WITH MITI OR WHOMEVER THE TIES BINDING POLITICIANS AND BUREAUCRATS ARE LOOSER SO ARE THOSE BETWEEN POLITICIANS AND BUSINESS THE ELECTORAL REFORM THAT LOOKS LIKELY TO PASS WILL CHANGE THE WAY POLITICIANS AND BUSINESS TALK TO EACH OTHER FINALLY THE INTERESTS THAT JOINED THE BUSINESS AND BUREAUCRATIC LINKS OF THE TRIANGLE HAVE DIVERGED FOR YEARS JAPANESE BUSINESSMEN RATHER LIKED THE WAY THE DIFFERENT MINISTRIES RIGGED MARKETS PRICES AND COMPETITION NOW THEY ARE GOING CRAZY CONSIDER THE HIRAIWA REPORT NAMED AFTER THE CHAIRMAN OF THE KEIDANREN BUSINESS LOBBY GAISHI HIRAIWA RELEASED LAST MONTH THE REPORT MAKES THE CASE THAT REGULATION IS HURTING THE ECONOMY MORE THAN IT IS HELPING AND BEGS THE BUREAUCRATS TO BACK OFF IT RECOMMENDS DEREGULATION ADMINISTRATIVE REFORM AND THE END OF ADMINISTRATIVE GUIDANCE GEE SOUNDS SOMETHING LIKE THE POLICIES OF A SUCCESSFUL US PRESIDENT DURING THE 1980S ANOTHER SIGN OF CHANGE IS THE CURIOUS BEHAVIOR OF THE MINISTRY OF FINANCE WHEN THE NIKKEI DUMPED 36 OF ITS VALUE MONDAY THE MOF DID NOTHING LAST YEAR WHEN THE MARKET DIPPED TO AROUND 14000 MOF PUMPED IN SOME 28 BILLION IN PENSION FUNDS AND POSTAL SAVINGS TO KEEP A FLOOR UNDER IT THIS TIME SAYS FINANCE MINISTER FUJII THE MARKET WILL HAVE TO FIND ITS OWN LEVEL JAPAN INC WAS NEVER AS POWERFUL AND OMNISCIENT AS IT WAS MADE OUT TO BE AND IT IS WEAKENING STEADILY TO STOP THE DOWNWARD SPIRAL THE GOVERNMENT HAS DISCUSSED TAX CUTS BUT TO APPEASE THE BUREAUCRATS' REVENUE GODS IT ALSO TALKS OF OFFSETTING THOSE CUTS WITH HIGHER CONSUMPTION TAXES WE SEEM TO RECALL A CONSUMPTIONTAX INCREASE SETTING OFF RIOTS IN ONE JAPANESE CITY NOT LONG AGO WHAT A MODERN GLOBALLY ORIENTED ECONOMY NEEDS MOST ARE INCENTIVES TO PRODUCE AND THE FREEDOM TO REACT QUICKLY TO CHANGING MARKET CONDITIONS NONE OF THIS IS LIKELY TO OCCUR IF A MODERN ECONOMY HAS HANGING OFF ITS BACK A TANGLED REGIME OF TAXES BUREAUCRATS REGULATIONS AND POLITICIANS JAPAN MUST NOW CONFRONT THAT TRUTH WE WISH THEM WELL AND OFFER THEM THE CONSOLATION THAT THEY ARE HARDLY THE ONLY MAJOR ECONOMIC POWER COMING TO GRIPS WITH THIS REALITY 9312020049 931202 SIMON & SCHUSTER IS SUED BY MASSAGEBOOK AUTHOR NEW YORK AN AUTHOR EMBROILED IN A DISPUTE WITH SIMON & SCHUSTER OVER ROYALTY PAYMENTS SUED THE PUBLISHER IN SAN FRANCISCO SUPERIOR COURT CHARGING BREACH OF CONTRACT GORDON INKELES WHO WROTE THE ART OF SENSUAL MASSAGE MORE THAN 20 YEARS AGO CHARGED THAT SIMON & SCHUSTER HAS FAILED TO ACCOUNT FOR MORE THAN 400000 OF THE MORE THAN ONE MILLION COPIES THE PUBLISHER SAYS IT HAS SOLD OF THE BOOK MR INKELES IS SEEKING MORE THAN 33 MILLION IN DAMAGES AS WELL AS PUNITIVE DAMAGES HE ALSO ASSERTS THAT AFTER HE BEGAN TO CHALLENGE THE ROYALTY STATEMENTS THE PUBLISHER BEGAN WITHHOLDING ALL ROYALTIES AND STARTED HARASSING HIM WITH FALSE TAX RETURNS AND CHAOTIC ACCOUNTING A SPOKESMAN FOR SIMON & SCHUSTER WHICH IS OWNED BY PARAMOUNT COMMUNICATIONS INC SAID IT BEGAN WITHHOLDING ROYALTIES AFTER MR INKELES FAILED TO RETURN A 14000 ADVANCE ON ANOTHER BOOK HE NEVER DELIVERED WE'VE BEEN LISTENING TO HIS ALLEGATIONS FOR YEARS AND THEY'RE BASELESS AND WITHOUT MERIT A SPOKESMAN FOR SIMON & SCHUSTER SAID MR INKELES SAYS PARAMOUNT CANCELED HIS OTHER BOOK WITHOUT BOTHERING TO READ THE MANUSCRIPT 9312020048 931202 BUSINESS BRIEF LESLIE FAY COS COURT APPROVES EXTENSION FOR REORGANIZATION FILING LESLIE FAY COS SAID A FEDERAL BANKRUPTCY COURT APPROVED A 75DAY EXTENSION TO FEB 16 1994 OF THE EXCLUSIVE TIME PERIOD FOR THE NEW YORK COMPANY TO FILE A PLAN OF REORGANIZATION SEPARATELY THE TROUBLED WOMEN'S APPAREL MAKER OPERATING UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SAID IT WOULD ASK THE COURT TO APPOINT AN INDEPENDENT EXAMINER TO EXPLORE ANY LINGERING CONCERNS ABOUT THE COMPANY'S EIGHTMONTH INTERNAL INVESTIGATION EARLIER THIS YEAR NEW YORK LAW FIRM WEIL GOTSHAL & MANGES HIRED BY OUTSIDE DIRECTORS CONDUCTED THE PROBE OF AN INTERNAL ACCOUNTING SCANDAL WHICH LED TO REVERSAL OF ABOUT 62 MILLION IN EARNINGS OVER THREE YEARS ALTHOUGH THE COMPANY DECLINED TO DISCUSS THE SOURCE OF LINGERING CONCERNS IT IS BEING FORMALLY INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION AND THE JUSTICE DEPARTMENT IS UNDERSTOOD TO BE CONDUCTING INQUIRIES THE COMPANY SAID IT BELIEVES THE LAW FIRM'S PROBE WAS THOROUGH AND COMPREHENSIVE 9312020047 931202 WHAT'S NEWS BUSINESS AND FINANCE MANUFACTURING EXPANDED IN NOVEMBER FOR THE SECOND CONSECUTIVE MONTH A SURVEY OF PURCHASING MANAGERS INDICATED BUT THE EMPLOYMENT COMPONENT OF THE INDEX DECLINED FURTHER LAST MONTH SEPARATELY THE ECONOMY GREW AT A REVISED 27 ANNUAL RATE IN THE THIRD QUARTER THE SEC IS ESCALATING ITS PRESSURE ON SECURITIES FIRMS TO CHANGE BROKERS' COMPENSATION SAYING THAT THE CURRENT SYSTEM OF COMMISSIONS ENCOURAGES BROKERS TO CHEAT THEIR CUSTOMERS A FORMER LEHMAN BROTHERS STAR BROKER IS UNDER INVESTIGATION BY THE SEC OVER ALLEGATIONS OF UNAUTHORIZED TRADING AND OTHER INVESTOR ABUSES PEOPLE FAMILIAR WITH THE MATTER SAID A FEDERAL APPEALS COURT THREW OUT A JUDGE'S ATTEMPT TO IMPOSE A MANDATORY SETTLEMENT OF ASBESTOS CLAIMS IN A CASE INVOLVING KEENE RAISING QUESTIONS ABOUT HOW FAR A COMPANY CAN GO IN LIMITING ITS LIABLITY IN SUCH CASES KENDALL SQUARE RESEARCH DEMOTED THREE TOP OFFICIALS AS IT REVISED 1992 RESULTS DOWNWARD AND DISCLOSED THAT MORE THAN HALF ITS REPORTED REVENUE THIS YEAR WASN'T LEGITIMATE US STOCKS SURGED AMID POWERFUL RALLIES OVERSEAS AND FURTHER EVIDENCE THE ECONOMY IS IMPROVING BOND PRICES ALSO ROSE THE DOW JONES INDUSTRIALS JUMPED 1313 POINTS TO 369708 THE TREASURY'S 30YEAR ISSUE GAINED MORE THAN 1/2 POINT ITS YIELD FELL TO 625 MAJOR AIRLINES AGREED TO PAY HIGHER LANDING FEES TO LOS ANGELES ENDING A STANDOFF THAT THREATENED TO CLOSE THE THIRDBUSIEST US AIRPORT AUTO MAKERS ARE POISED TO STOP REPORTING 10DAY SALES DATA AND THE RESULT WILL BE THE LOSS OF ONE OF THE FEW FLASH ECONOMIC INDICATORS BELLSOUTH IS EXPECTED TO FILE A LEGAL CHALLENGE TODAY TO AT&T'S PLAN TO ACQUIRE MCCAW CELLULAR IN THE FIRST MOVE BY A BABY BELL TO IMPOSE A ROADBLOCK TO THE 126 BILLION DEAL BELL ATLANTIC UNVEILED PLANS TO DELIVER MULTIMEDIA SERVICES TO OVER ONE MILLION HOMES BY 1995 THE FIRST TIME THE PHONE FIRM HAS GIVEN SPECIFICS ON ITS VIDEOTOTHEHOME PROJECT FORD'S EARNINGS ARE EXPECTED TO IMPROVE SUBSTANTIALLY NEXT YEAR AS THE US VEHICLE MARKET CONTINUES TO STRENGTHEN AND AS FORD ROLLS OUT A SERIES OF NEW PRODUCTS ALEXANDER TROTMAN FORD'S NEW CEO SAID VICTOR POSNER WAS BANNED BY A FEDERAL JUDGE FROM SERVING AS AN OFFICER OR DIRECTOR OF ANY PUBLIC COMPANY BECAUSE OF SECURITIESLAW VIOLATIONS THE PENALTY APPLIES TO HIS SON STEVEN TOO CALIFORNIA'S INSURANCE COMMISSIONER ORDERED A 127 CUT IN THE MINIMUM PREMIUM PAID BY THE STATE'S EMPLOYERS FOR WORKERS' COMPENSATION EURO DISNEY'S STOCK JUMPED 13 ON AN UNCONFIRMED REPORT THAT PARENT WALT DISNEY IS PREPARED TO INJECT 506 MILLION INTO THE EUROPEAN COMPANY THREE HOMEINFUSION THERAPY CONCERNS AGREED TO MERGE IN A STOCK DEAL THAT WOULD CREATE A COMPANY WITH A MARKET VALUE OF ABOUT 217 MILLION THE MOVE BY CURAFLEX HEALTH HEALTHINFUSION AND MEDISYS COMES AT A TIME OF SEVERE PRICING PRESSURES AND COMPETITION IN THE INDUSTRY TYCO TOYS WILL OMIT ITS DIVIDEND POST A FOURTHQUARTER LOSS AND FALL SHORT OF LAST YEAR'S REVENUE ITS STOCK FELL 1875 OR 18 TO 875 THE TOY MAKER RETAINED A FINANCIAL ADVISER TO MANAGE A PRIVATE EQUITY OFFERING BONDS LEHMAN BROTHERS TREASURY INDEX 551931 UP 3183 COMMODITIES OIL 1548 A BARREL UP FIVE CENTS DOW JONES FUTURES INDEX 13610 UP 069 SPOT INDEX 12275 UP 061 DOLLAR 10875 YEN OFF 033 17235 MARKS UP 00085 9312020046 931202 INTERNATIONAL US EC OFFICIALS REMAIN UPBEAT ON TRADE TALKS BRUSSELS REPRESENTATIVES FROM THE US AND EUROPEAN COMMUNITY MET TRYING TO KEEP ALIVE NEW HOPES FOR FLEXIBILITY IN THE CURRENT ROUND OF WORLD TRADE TALKS US SECRETARY OF STATE WARREN CHRISTOPHER APPEARED CAUTIOUSLY UPBEAT ABOUT THE CHANCES THAT TWO DAYS OF TALKS BETWEEN US TRADE REPRESENTATIVE MICKEY KANTOR AND SIR LEON BRITTAN THE EC'S TRADE COMMISSIONER WOULD BRING THE TWO SIDES CLOSE TO A DEAL I'M NOT PESSIMISTIC ABOUT THE OUTCOME BASED ON DISCUSSIONS THAT I'VE HAD HERE TODAY MR CHRISTOPHER SAID AFTER MEETINGS WITH EC COMMISSION PRESIDENT JACQUES DELORS SIR LEON AND OTHERS NEITHER SIDE WOULD PROVIDE DETAILS ABOUT YESTERDAY OR TODAY'S DISCUSSIONS WHICH ARE AIMED AT ENDING AN ECUS STALEMATE OVER FARM SUBSIDIES AS WELL AS A SERIES OF OTHER ISSUES BLOCKING AN AGREEMENT IN THE SEVENYEAROLD TALKS HELD UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHILE FRANCE HAS HINTED IN THE PAST FEW DAYS AT WILLINGNESS TO COMPROMISE FRENCH PRIME MINISTER EDOUARD BALLADUR YESTERDAY ADOPTED A TOUGHER TONE HE SAID THE EC NEEDS AN OUTLINE AGREEMENT WELL BEFORE DEC 15 WHEN THE CLINTON ADMINISTRATION'S FASTTRACK NEGOTIATING AUTHORITY RUNS OUT SO THAT EC COUNTRIES HAVE TIME TO SCRUTINIZE WHAT IS ON OFFER HE ALSO SAID FRANCE HAD TO OBTAIN SATISFACTION ON ALL ITS MAIN DEMANDS 9312020045 931202 BUSINESS BRIEF NYNEX CORP UP TO 400 JOBS TO BE CUT UNDER RESTRUCTURING PLAN NYNEX CORP PLANS TO RESTRUCTURE ITS TELECOMMUNICATIONS OPERATIONS AND ELIMINATE UP TO 400 JOBS THE NEW YORKBASED BABY BELL SAID ITS NEW ENGLAND TELEPHONE CO AND NEW YORK TELEPHONE CO UNITS WILL MARKET ALL PRODUCTS AND SERVICES UNDER THE NYNEX NAME BEGINNING IN JANUARY A SPOKESWOMAN SAID NYNEX WILL ELIMINATE 350 TO 400 JOBS MAINLY AT NEW ENGLAND TELEPHONE NEW YORK TELEPHONE AND THE COMPANY'S MARKETING OPERATIONS DETAILS ARE EXPECTED TO BE ANNOUNCED TODAY NYNEX SAID IT HASN'T YET DETERMINED WHETHER IT WILL TAKE A CHARGE RELATED TO THE JOB CUTS THE COMPANY SAID IT HOPES TO ELIMINATE OVERLAPPING ASPECTS OF VARIOUS UNITS BY CONSOLIDATING CERTAIN OPERATIONS ADOPTING A SIMPLER BILLING METHOD AND USING A SINGLE NUMBER FOR CUSTOMER INQUIRIES 9312020044 931202 MARKETING BRIEF TURNER BROADCASTING SYSTEM INC TURNER MOVIE UNIT ACQUIRES RIGHTS TO OVER 200 FILMS TURNER BROADCASTING SYSTEM INC SAID ITS TURNER CLASSIC MOVIES NETWORK ACQUIRED THE RIGHTS TO MORE THAN 200 FILMS FROM WARNER BROTHERS A UNIT OF TIME WARNER INC TERMS OF THE MULTIYEAR AGREEMENT WEREN'T DISCLOSED THE COST OF ACQUIRING FILM RIGHTS TYPICALLY IS LINKED TO THE LENGTH OF THE CONTRACT AS WELL AS THE AGE OF THE MOVIES TURNER A CABLE PROGRAMMER ALREADY HAS MORE THAN 3600 FILMS IN ITS LIBRARY THE LATEST AGREEMENT ADDS SUCH TITLES AS THE EXORCIST AND A STREETCAR NAMED DESIRE THE TURNER MOVIE UNIT ALSO ADDED THAT IT REACHED ITS FIRST AGREEMENT WITH A CABLE AFFILIATE ADELPHIA CABLE BASED IN COUDERSPORT PA WILL DISTRIBUTE MOVIES FROM TURNER TO 250000 SUBSCRIBERS WHEN THE NETWORK IS LAUNCHED NEXT APRIL ADELPHIA ESTIMATES THAT AS MANY AS 500000 SUBSCRIBERS WILL RECEIVE TURNER MOVIES BY THE END OF 1995 9312020043 931202 BUSINESS BRIEF NEW HAMPSHIRE ELECTRIC COOPERATIVE UTILITY LEAVES BANKRUPTCY THAT WAS TIED TO SEABROOK NEW HAMPSHIRE ELECTRIC COOPERATIVE INC PLYMOUTH NH EMERGED FROM BANKRUPTCY MORE THAN TWO YEARS AFTER DEBT ASSOCIATED WITH THE SEABROOK NH NUCLEARPOWER PLANT FORCED THE UTILITY TO SEEK PROTECTION FROM CREDITORS THE COOP SERVING AND OWNED BY 65000 MEMBERS FOUGHT OFF A TAKEOVER ATTEMPT BY THE FEDERAL RURAL ELECTRIFICATION ADMINISTRATION TO WHICH IT OWED ABOUT 260 MILLION AT THE TIME IT FILED FOR BANKRUPTCY PROTECTION IN MAY 1991 UNDER A REORGANIZATION PLAN APPROVED BY US BANKRUPTCY COURT IN JANUARY 1992 THE COOP HAS BEEN MAKING REGULAR PAYMENTS TO REA AND THAT DEBT HAS BEEN REDUCED TO APPROXIMATELY 200 MILLION A COOP SPOKESMAN SAID THE MONEY WAS BORROWED LARGELY TO INVEST IN SEABROOK BUT WHEN THE NUCLEARPOWER PLANT BILLIONS OF DOLLARS OVER BUDGET WENT ON LINE IN 1990 NEW HAMPSHIRE STATE OFFICIALS DIDN'T ALLOW THE COOP TO RAISE ITS RATES 9312020042 931202 INTERNATIONAL GRUPO TELEVISA IS GRANTED MEXICAN TV CONCESSION MEXICO CITY MEXICAN MEDIA GIANT GRUPO TELEVISA SA RECEIVED A GOVERNMENT CONCESSION TO OPERATE 62 TELEVISION CHANNELS THROUGHOUT MEXICO THEY WILL FORM THE BASIS FOR THE COMPANY'S FOURTH NATIONAL TELEVISION NETWORK TELEVISA IS SURE TO DRAW FIRE FOR ITS LATEST GOVERNMENT ACQUISITIONS THE COMPANY IS WIDELY CRITICIZED IN MEXICO FOR ITS MONOPOLISTIC PRACTICES AND FOR ITS CLOSE TIES TO THE ADMINISTRATION OF PRESIDENT CARLOS SALINAS DE GORTARI AFTER THE CONCESSION FOR WHICH TELEVISA WILL PAY AT LEAST 92 MILLION THE COMPANY WILL OPERATE 507 OF ALL STATIONS TRANSMITTING COMMERCIALLY IN MEXICO UP FROM 447 BY RATING TELEVISA CONTROLS OVER 90 OF MEXICO'S TELEVISION AUDIENCE IN WINNING THE CONCESSION TELEVISA BEAT OUT FOUR OTHER ASPIRANTS IN BIDDING THAT CONSIDERED PRICE ONLY ONE OF SEVERAL FACTORS TWO WEEKS AGO TELEVISA LAUNCHED A JOINTVENTURE HOMESHOPPING CHANNEL WITH QVC CORP WITH PENETRATION INTO 15 MILLION MEXICAN HOUSEHOLDS IN SEPTEMBER TELEVISA SIGNED A LETTER OF INTENT WITH RUPERT MURDOCH'S NEWS CORP TO FORM A VENTURE TO PRODUCE TELEVISION PROGRAMMING SEPARATELY THE MINISTRY OF TRANSPORTATION AND COMMUNICATIONS YESTERDAY AWARDED RECENTLY PRIVATIZED NATIONAL NETWORK TELEVISION AZTECA SA 10 LOCAL TELEVISION CHANNELS AZTECA WHICH CONTROLS MEXICO'S ONLY OTHER NATIONAL NETWORKS CHANNELS 7 AND 13 DIDN'T APPLY FOR THE CONCESSION WON BY TELEVISA 9312020040 931202 INTERNATIONAL SEVEN TV FIRMS AGREE TO LEASE SATELLITE IN ASIA BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE BATTLE FOR ASIA'S TELEVISION VIEWERS KICKED INTO HIGH GEAR YESTERDAY WHEN A GROUP OF SEVEN INTERNATIONAL BROADCASTERS SIGNED AN AGREEMENT TO LEASE CAPACITY ON A SATELLITE THAT CAN REACH NEARLY TWOTHIRDS OF THE WORLD'S POPULATION THE AGREEMENT PITS THE GROUP AGAINST STAR TV ASIA'S FIRST SATELLITE TV BROADCASTER WHICH IS CONTROLLED BY AUSTRALIA'S NEWS CORP THE CONSORTIUM IS MADE UP OF TURNER BROADCASTING SYSTEM INC TIME WARNER INC'S TIME WARNER ENTERTAINMENT CAPITAL CITIES/ABC INC'S ESPN INC DISCOVERY COMMUNICATIONS INC VIACOM INC HOME BOX OFFICE ASIA A JOINT VENTURE BETWEEN TIME WARNER AND PARAMOUNT COMMUNICATIONS INC AND HONG KONG'S TELEVISION BROADCASTS LTD THE GROUP AGREED TO LEASE 16 TRANSPONDERS OR TRANSMISSION CHANNELS ON THE APSTAR2 SATELLITE FROM THE HONG KONGBASED APT SATELLITE CO THE HONG KONG CONCERN ANNOUNCED TWO WEEKS AGO THAT IT HAD AGREED TO ACQUIRE THE APSTAR2 SATELLITE ITS SECOND SATELLITE FROM HUGHES AIRCRAFT CO THE OPERATING UNIT OF GENERAL MOTORS CORP'S GM HUGHES ELECTRONICS CORP WHEN LAUNCHED APSTAR2 WILL HAVE A REACH FROM EUROPE TO JAPAN AND FROM NORTH ASIA TO AUSTRALIA IN JULY TURNER ESPN ASIA HOME BOX OFFICE ASIA DISCOVERY AND HONG KONG'S TVB AGREED TO LEASE NINE TRANSPONDERS ON APSTAR1 WHICH WILL COVER MOST OF CHINA TAIWAN AND SOUTHEAST ASIA APSTAR1 IS DUE TO BE LAUNCHED IN MID1994 THE AGREEMENT TO LEASE CAPACITY ON APSTAR2 WHICH IS SCHEDULED TO GO UP IN DECEMBER 1994 ENLARGES THE GROUP OF INTERNATIONAL BROADCASTERS AND THE GROUP'S BROADCASTING REACH TURNER AND TVB HAVE EACH LEASED FOUR TRANSPONDERS ON APSTAR2 WHILE ESPN DISCOVERY AND HOME BOX OFFICE HAVE LEASED ONE EACH EXECUTIVES REPRESENTING TIME WARNER ENTERTAINMENT AND VIACOM REFUSED TO SAY HOW MANY TRANSPONDERS THEY HAD LEASED FOR BROADCASTERS SUCH AS VIACOM AND TIME WARNER THE AGREEMENT TO LEASE SATELLITE CAPACITY ON APSTAR2 PAVES THE WAY FOR THE ROLLOUT OF ADDITIONAL CHANNELS AND SERVICES VIACOM CURRENTLY LICENSES THE RIGHTS TO BROADCAST ITS MTV NETWORK IN ASIA TO STAR TV HOWEVER EITHER VIACOM OR STAR TV CAN TERMINATE THE AGREEMENT IN 1994 IF THE CHANNEL HASN'T MET 75 OF ITS REVENUE GOAL OF 343 MILLION FOR 1994 OTHERWISE VIACOM'S AGREEMENT WILL EXPIRE IN 1996 ONE CLOUD ON THE HORIZON IS WHETHER HUGHES WILL BE ALLOWED TO SUPPLY APT WITH EITHER THE APSTAR1 OR APSTAR2 SATELLITES IN SEPTEMBER WASHINGTON IMPOSED SANCTIONS PROHIBITING THE SALE OF US SATELLITE TECHNOLOGY TO CHINA THREE OUT OF APT'S SEVEN SHAREHOLDERS ARE COMPANIES WITH TIES TO DIFFERENT CHINESE MINISTRIES TED MCFARLAND MANAGING DIRECTOR OF HUGHES AIRCRAFT'S ASIAPACIFIC DIVISION SAID HUGHES HAD YET TO RECEIVE CONFIRMATION FROM THE US GOVERNMENT THAT IT WOULD BE ALLOWED TO SELL ITS SATELLITES TO APT BUT HE SAID HUGHES AIRCRAFT REMAINS OPTIMISTIC THAT THERE WILL BE A POSITIVE OUTCOME