INVESTMENT GROUP ODYSSEY PARTNERS SAID IT AGREED TO BUY BALTIMOREBASED SCOTSMAN GROUP INC A LESSOR OF MOBILE OFFICE UNITS FOR 234 MILLION THE NEW YORK COMPANY SAID THE TRANSACTION EXPECTED TO BE COMPLETED THIS MONTH WILL BE FINANCED THROUGH A COMBINATION OF 59 MILLION FROM ODYSSEY 165 MILLION OF SENIOR SECURED NOTES OFFERED BY SCOTSMAN GROUP AND 10 MILLION IN LOANS SCOTSMAN GROUP MAINTAINS A FLEET OF ABOUT 25000 MOBILE UNITS SUCH AS MOVABLE CLASSROOMS AND HEALTHCARE TRAILERS 9312020038 931202 TEAMSTERS UNION MEMBERS RATIFY THEIR FIRST CONTRACT WASHINGTON EMPLOYEES OF THE TEAMSTERS UNION RATIFIED THEIR FIRST CONTRACT IN THE UNION'S 90YEAR HISTORY UNDER THE CONTRACT PAY INCREASES EQUAL TO 31 OF TOTAL SALARIES WILL BE APPORTIONED AMONG INDIVIDUALS BASED ON A NEW JOB CLASSIFICATION STUDY IN ADDITION EACH UNION MEMBER WILL RECEIVE A ONETIME 500 PAYMENT THE CONTRACT ALSO ALLOWS PROFESSIONALS TO BUMP JUNIOR EMPLOYEES FROM THEIR JOBS DURING LAYOFFS BUT ONLY IF THE PROFESSIONALS CAN BE TRAINED FOR THE NEW JOBS IN 60 DAYS ORIGINALLY MANAGEMENT WANTED TO GIVE SENIOR STAFFERS THE RIGHT TO BUMP EMPLOYEES ONLY WITHIN THEIR DEPARTMENTS AND THE EMPLOYEES UNION WANTED FULL BUMPING RIGHTS UNDER THE CONTRACT EMPLOYEES WHO CAN'T BUMP OTHER WORKERS WILL BE ALLOWED TO TRANSFER TO OTHER DEPARTMENTS IF THEY CAN DO THE NEW JOBS WITHOUT HAVING TO BE TRAINED THE TEAMSTERS EMPLOYEES WON UNION REPRESENTATION FOR THE FIRST TIME IN 1992 9312020037 931202 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 DELTA AIR LINES INC 100 MILLION OF FIVEYEAR MEDIUMTERM NOTES PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE NOTES WERE PRICED AT PAR AT 779 AND ARE NONCALLABLE THAT REPRESENTS A SPREAD OF 265 BASIS POINTS ABOVE COMPARABLE TREASURYS THE BONDS ARE RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEB BY STANDARD & POOR'S CORP FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION IN TWO BOND OFFERINGS A NONCALLABLE 300 MILLION OFFERING OF NOTES DUE DEC 9 1996 WAS PRICED AT PAR AT 464 THROUGH MERRILL LYNCH & CO THE NOTES WERE PRICED NINE BASIS POINTS ABOVE COMPARABLE TREASURYS ALSO PRICED WERE 100 OF DEBENTURES DUE DEC 9 2008 AT PAR AT 659 THE DEBENTURES WERE PRICED 77 BASIS POINTS ABOVE COMPARABLE TREASURYS AND ARE NONCALLABLE FOR FIVE YEARS LEHMAN BROTHERS INC IS LEAD MANAGER WESTPOINT STEVENS INC 950 MILLION TWOPART ISSUE OF DEBT PRICED BY UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 400 MILLION IN SENIOR NOTES DUE DEC 15 2001 WAS PRICED AT PAR TO YIELD 875 THE NOTES NONCALLABLE FOR FIVE YEARS ARE THEN CALLABLE AT 104375 THE SECOND TRANCHE 550 MILLION IN SENIOR SUBORDINATED DEBENTURES DUE DEC 15 2005 WAS PRICED AT PAR TO YIELD 9375 THE DEBENTURES NONCALLABLE FOR FIVE YEARS ARE THEN CALLABLE AT 104688 THEY ARE ALSO SUBJECT TO A THREEYEAR 35 EQUITY CALL AT 108 THE SECOND TRANCHE IS RATED SINGLEB3 BY MOODY'S AND SINGLEBPLUS BY S&P WESTPOINT IS AN AFFILIATE OF VALLEY FASHIONS CORP WMX TECHNOLOGIES INC 500 MILLION OF NOTES DUE DEC 1 2003 PRICED AS 6375S AT 99875 TO YIELD 6392 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WMX TECHNOLOGIES IS THE PARENT OF WASTE MANAGEMENT INC ALLIANCE SEMICONDUCTOR CORP INITIAL PUBLIC OFFERING OF 25 MILLION SHARES OF COMMON STOCK AT 8 APIECE THROUGH LEAD UNDERWRITER HAMBRECHT & QUIST INC COHO ENERGY INC TWO MILLION SHARES OF COMMON STOCK AT 450 APIECE THROUGH MANAGING UNDERWRITERS JEFFERIES & CO AND KEMPER SECURITIES INC MEDAPHIS CORP THREE MILLION COMMON SHARES PRICED AT 28 APIECE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC IRVINE APARTMENT COMMUNITIES INC INITIAL OFFERING OF 118 MILLION COMMON SHARES PRICED AT 1750 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO LOS ANGELES COMMUNITY REDEVELOPMENT AGENCY 2735 MILLION OF BONDS FOR THE BUNKER HILL PROJECT APPARENTLY WON BY GROUPS LED BY LEHMAN BROTHERS INC AND GOLDMAN SACHS & CO LEHMAN BROTHERS IS BELIEVED TO HAVE WON THE 2035 MILLION SERIES H TAXALLOCATION REFUNDING BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 5793 YIELDS RANGE FROM 555 IN 2014 TO 575 IN 2028 THE BONDS ARE INSURED BY FINANCIAL SECURITY ASSURANCE INC AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P GOLDMAN SACHS APPARENTLY WON THE 70 MILLION TAXABLE SERIES I TAXALLOCATION BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 697 YIELDS FOR THIS PORTION OF THE OFFERING RANGE FROM 45 IN 1995 TO 725 IN 2013 THESE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND ALSO CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P NEW JERSEY 13 BILLION SERIES FISCAL 1994 TAX AND REVENUE ANTICIPATION NOTES AWARDED TO SIX FIRMS THE NOTES ARE THE FIRST SUCH ISSUES SOLD COMPETITIVELY BY THE STATE THE OVERALL AMOUNT WAS SET AT 13 BILLION BUT FIRMS HAD A CHOICE OF BIDDING ON THREE TYPES OF NOTES SERIES FISCAL 1994A FIXEDRATE NOTES FISCAL 1994B VARIABLERATE DEMAND NOTES AND FISCAL 1994C INDEXED NOTES BY GIVING MUNI UNDERWRITERS A SELECTION CONSISTING OF FIXEDRATE NOTES AND TWO TYPES OF DERIVATIVES NEW JERSEY ALLOWED THE BIDDERS TO DETERMINE THE ACTUAL MAKEUP OF THE OFFERING ALL OF THE WINNING BIDS WERE FOR FIXEDRATE NOTES THUS THE OFFERING IS FOR 13 BILLION OF SERIES FISCAL 1994A FIXEDRATE NOTES THE FOLLOWING FIRMS WERE AWARDED CS FIRST BOSTON INC BEAR STEARNS & CO LEHMAN BROTHERS INC PAINEWEBBER INC SMITH BARNEY SHEARSON INC AND MERRILL LYNCH & CO THE NOTES ARE DUE JUNE 15 1994 AND CARRY A 3 COUPON MOODY'S RATED THE NOTES MIG1 AND S&P HAS ASSIGNED AN SP1PLUS RATING SAN JOSE CALIF REDEVELOPMENT AGENCY 6744 MILLION SERIES 1993 TAXALLOCATION BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 25 IN 1994 TO 574 IN 2021 BONDS DUE IN 2021 AND 2022 HAVE SINGLEA RATINGS FROM BOTH MOODY'S AND S&P ALL OTHER BONDS ARE INSURED BY THE THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P PROCEEDS FROM THE BOND SALE WILL BE USED TO ADVANCEREFUND ALL OUTSTANDING TAXALLOCATION BONDS TO EXTEND THE MATURITY SCHEDULE TO 2024 FROM THE CURRENT 2011 IN ADDITION PROCEEDS WILL BE USED TO PROVIDE 191 MILLION OF NEW MONEY TO FINANCE THE AGENCY'S ONGOING CAPITALIMPROVEMENT PROGRAM THE BONDS ARE SPECIAL OBLIGATIONS OF THE SAN JOSE REDEVELOPMENT AGENCY AND ARE SECURED PRIMARILY BY A PLEDGE OF TAX REVENUE CONSISTING OF A PORTION OF ALL TAXES LEVIED UPON ALL TAXABLE PROPERTY WITHIN EACH OF THE REDEVELOPMENT PROJECT AREAS CONSTITUTING THE MERGED AREA REDEVELOPMENT PROJECT THERE ARE 15 SEPARATE PROJECT AREAS THROUGHOUT SAN JOSE TEXAS WATER DEVELOPMENT BOARD 125 MILLION SERIES 1993 SENIORLIEN REVENUE BONDS FOR THE STATE REVOLVING FUND PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 385 IN 1997 TO 55 IN 2015 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A TRIPLEA RATING SIGNET BANKING CORP 11 BILLION IN TWO SERIES OF ASSETBACKED SECURITIES ISSUED BY THE SIGNET BANK/VIRGINIA UNIT THE COMPANY SAID IT SOLD THE SERIES 19933 CERTIFICATES IN TWO TRANCHES 360 MILLION OF 485 CLASS A CERTIFICATES AND 40 MILLION 525 CLASS B CERTIFICATES SIGNET SAID IT ALSO SOLD THE SERIES 19934 CERTIFICATES IN TWO TRANCHES 609 MILLION OF FLOATINGRATE CLASS A CERTIFICATES AND 91 MILLION OF 58 CLASS B CERTIFICATES SIGNET SAID IT ISSUED THE SECURITIES THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC THE COMPANY SAID IT EXPECTS THE CLASS A CERTIFICATES FROM EACH ISSUE TO BE RATED TRIPLEA BY BOTH MOODY'S AND S&P SIGNET SAID IT EXPECTS THE CLASS B CERTIFICATES FROM EACH ISSUE TO BE RATED SINGLEA BY THE TWO AGENCIES THE COMPANY SAID THE SECURITIES ARE BACKED BY CASH FLOW FROM CREDIT CARD RECEIVABLES THE COMPANY SAID THE OFFERING REPRESENTS THE THIRD AND FOURTH SERIES OF ITS SIGNET MASTER TRUST THE FIRST TWO SERIES WERE ISSUED IN SEPTEMBER ASFINAG AUSTRIA 500 MILLION MARKS OF 6 EUROBONDS DUE DEC 23 2013 AT ISSUE PRICE 9818 VIA BAYERISCHE VEREINSBANK AG AND SG WARBURG GMBH REOFFERED AT 95875 TO YIELD 637 A SPREAD OF 51 BASIS POINTS ABOVE 6 GERMAN BUND OF SEPTEMBER 2003 GUARANTOR REPUBLIC OF AUSTRIA FEES 275 BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG GERMANY 300 MILLION DUTCH GUILDERS OF 6125 EUROBONDS DUE JAN 19 2004 AT ISSUE PRICE 1007 VIA RABOBANK NEDERLAND REOFFERED AT PAR TO YIELD 6125 A SPREAD OF 32 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES 03 DE NATIONALE INVESTERINGSBANK NV NETHERLANDS 13 BILLION YEN OF FLOATINGRATE EURONOTES DUE MARCH 18 1999 AT ISSUE AND REOFFER PRICE 10332 VIA IBJ INTERNATIONAL LTD PAYABLE QUARTERLY AT THREEMONTH YEN LONDON INTERBANK OFFERED RATE PLUS 30 BASIS POINTS TO MARCH 18 1997 THEREAFTER COUPON IS FIVEYEAR YENYEN SWAP RATE WHICH WILL BE RESET EVERY THREE MONTHS LAUNCHED OFF BORROWER'S EURO MEDIUMTERMNOTE PROGRAM FEES 03 DEUTSCHE AUSGLEICHSBANK GERMANY 300 MILLION MARKS OF 6 EUROBONDS DUE JAN 5 2004 AT ISSUE PRICE 101675 VIA SCHWEIZERISCHE BANKVEREIN DEUTSCHLAND AG REOFFERED AT 995 TO YIELD 607 A MARGIN OF 22 BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES 25 NATIONAL BANK OF HUNGARY HUNGARY 10 BILLION SPANISH PESETAS OF 103 EUROBONDS DUE JAN 10 1999 AT ISSUE AND REOFFER PRICE PAR VIA BANESTO BONDS YIELD 103 A SPREAD OF 225 BASIS POINTS OVER COMPARABLE SPANISH GOVERNMENT BOND FEES UNDISCLOSED NEDERLANDSE SPOORWEGEN NETHERLANDS 300 MILLION DUTCH GUILDERS OF 5875 EUROBONDS DUE DEC 29 2003 AT ISSUE PRICE 10065 VIA ABN AMRO BANK NV REOFFERED AT 999 TO YIELD 589 A MARGIN OF 95 BASIS POINTS ABOVE DUTCH STATE LOAN OF APRIL 2003 GUARANTOR THE NETHERLANDS FEES ONE NTS STEEL GROUP CO THAILAND 100 MILLION OF CONVERTIBLE EUROBONDS DUE DEC 16 2008 AT ISSUE PRICE PAR VIA ROBERT FLEMING & CO INDICATED COUPON 4 TO 425 BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 18 TO 22 TERMS TO BE FIXED BY FRIDAY PUT OPTION EXERCISABLE IN DECEMBER 2003 AT PRICE TO YIELD MARGIN OF 150 TO 175 BASIS POINTS OVER 10YEAR US TREASURY BONDS CALLABLE AFTER THREE YEARS UNTIL PUT DATE AT PAR SUBJECT TO SHARE PRICE BEING 140 OF CONVERSION PRICE FEES UNDISCLOSED PAYABLE SEMIANNUALLY ROBERT FLEMING INTERNATIONAL FINANCE LTD BRITISH PARENT 100 MILLION OF 925 SUBORDINATED UNDATED EUROBONDS AT ISSUE AND REOFFER PRICE 99206 VIA HOARE GOVETT AND ROBERT FLEMING BONDS YIELD 9321 TO 2017 A MARGIN OF 235 BASIS POINTS OVER UNITED KINGDOM GILT OF 2017 BONDS CALLABLE AT PAR ON MARCH 25 2024 AND IN 15YEAR INTERVALS THEREAFTER GUARANTOR ROBERT FLEMING HOLDINGS FEES 075 SCHLESWIGHOLSTEIN GERMAN STATE 300 MILLION MARKS OF STEPUP EXTENDABLE BONDS AT ISSUE PRICE 1014 VIA JP MORGAN GMBH REOFFERED AT 99225 INITIAL MATURITY DATE JAN 6 2004 INITIAL COUPON 6 TO GIVE SPREAD OF 25 BASIS POINTS ABOVE 6 GERMAN BUND OF SEPTEMBER 2003 BONDS EXTENDABLE AT ISSUER'S OPTION IN 2004 AND 2009 WITH FINAL MATURITY JAN 6 2014 FROM JANUARY 2004 COUPON AT 6625 TO YIELD SPREAD OF 37 BASIS POINTS OVER 10YEAR BUND FROM JANUARY 2009 COUPON AT 6875 TO YIELD SPREAD OF 45 BASIS POINTS OVER 10YEAR BUND FEES 25 SUMITOMO CORP OVERSEAS CAPITAL LTD JAPANESE PARENT 15 BILLION YEN OF 294 EUROBONDS DUE APRIL 28 1998 AT ISSUE AND FIXED REOFFER PRICE 10045 VIA SAKURA FINANCE INTERNATIONAL LTD BONDS YIELD 282 KEEPWELL AGREEMENT WITH SUMITOMO CORP FEES 045 TITULICACION DACTIVOS NO 1 SPECIALPURPOSE VEHICLE 12 BILLION SPANISH PESETAS OF 855 BONDS DUE DEC 22 2010 AT ISSUE AND REOFFER PRICE 9993 VIA BANESTO SA AND INTERNATIONAL CORP BINATORD CORDINATOR BONDS SECURED ON MORTGAGES ORIGINATED BY BANESTO EXPECTED AVERAGE LIFE 44 YEARS BONDS YIELD A SPREAD OF 70 BASIS POINTS OVER FIVEYEAR SPANISH GOVERNMENT BOND FEES 05 POINT PAYABLE SEMIANNUALLY TOYO CONSTRUCTION CO JAPAN 100 MILLION OF FLOATINGRATE EURONOTES DUE DEC 15 1998 AT ISSUE AND REOFFER PRICE PAR VIA SANWA INTERNATIONAL PLC PAYABLE SEMIANNUALLY AT 275 BASIS POINTS ABOVE SIXMONTH DOLLAR LIBOR GUARANTOR SANWA BANK LTD FEES 03 UNION ASIA FINANCE CO THAILAND 75 MILLION OF CONVERTIBLE EUROBONDS DUE DEC 22 2003 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC INDICATED COUPON 3375 TO 3875 BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 11 TO 15 TERMS TO BE FIXED TUESDAY MANDATORY CONVERSION AFTER THREE YEARS SUBJECT TO SHARE PRICE BEING 140 OF CONVERSION PRICE FEES 25 LESS 035 FOR LEAD MANAGER 9312020036 931202 INTERNATIONAL BANKS IN JAPAN EXPECTED TO CUT PRIME RATES SOON TOKYO AMID THE SHARP DROP IN OPENMARKET INTEREST RATES JAPANESE BANKS ARE CERTAIN TO REDUCE THEIR PRIME LENDING RATES WITH COMMERCIAL BANKS ANNOUNCING A CUT IN THE SHORTTERM PRIME PERHAPS THIS WEEK BANKERS SAY THE BANK OF JAPAN IS SEEN LEADING MARKET RATES AND BY EXTENSION LENDING RATES LOWER TO GIVE THE ECONOMY A BOOST WITHOUT HAVING TO REDUCE THE LESSFLEXIBLE DISCOUNT RATE DURING THE PAST WEEK THE CENTRAL BANK HAS ALLOWED MONEYMARKET RATES TO DROP AMID A SLEW OF BEARISH ECONOMIC DATA AND THE SLUMP IN JAPANESE STOCK PRICES TO THEIR LOWEST LEVEL IN A YEAR INDEED SOME ANALYSTS SPECULATE THAT THE CENTRAL BANK IS TARGETING A CUT IN THE PRIME LENDING RATES OF JAPANESE BANKS THE BANK OF JAPAN IS TRYING TO LOWER THE SHORTTERM PRIME RATE WITHOUT CUTTING THE DISCOUNT RATE ONE BANKER SAID THE DISCOUNT RATE CURRENTLY AT THE HISTORIC LOW OF 175 IS THE CENTRAL BANK'S CHARGE ON LOANS TO BANKS ITS CHANGES HAVE A MAJOR PSYCHOLOGICAL IMPACT ON THE ECONOMY SO THE BANK OF JAPAN CHANGES THIS KEY RATE ONLY AFTER CAREFUL CONSIDERATION THE SHORTTERM PRIME NOW AT 3375 PROBABLY WILL BE REDUCED 025 PERCENTAGE POINT OR 0375 POINT THOUGH THE SMALLER CUT IS MORE LIKELY ONE BANKER PREDICTS 9312020035 931202 MARKETING & MEDIA PBS PICKS FCC'S DUGGAN AS ITS PRESIDENT AND CHIEF WASHINGTON THE PUBLIC BROADCASTING SERVICE AS EXPECTED NAMED ERVIN S DUGGAN A MEMBER OF THE FEDERAL COMMUNICATIONS COMMISSION AS ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR DUGGAN 54 A DEMOCRAT WHOSE TERM AT THE FCC WAS TO EXPIRE NEXT JUNE SAID IN AN INTERVIEW THAT HE SEES TWO IMMEDIATE CHALLENGES TO RESTORE CONFIDENCE IN THE INSTITUTION AND TO REBUILD FUNDING PARTICULARLY FROM CORPORATE CONTRIBUTORS AN UNWARRANTED PESSIMISM ABOUT PUBLIC BROADCASTING HAS RESULTED FROM A NEGLECT OF PBS DURING 12 YEARS OF REPUBLICAN ADMINISTRATIONS MR DUGGAN ASSERTED THE MYTH THAT THE COMMERCIAL MARKETPLACE CAN PROVIDE EVERY POSSIBLE SOCIAL GOOD HAS BEEN HARMFUL TO PBS HE SAID ADDING THAT PUBLIC AND COMMERCIAL TELEVISION CAN COEXIST WITH EACH PROVIDING SOMETHING THE OTHER DOESN'T FOR THE LONG TERM MR DUGGAN SAID HE WILL WORK ON FINDING A PLACE FOR PUBLIC BROADCASTING AS NEW TECHNOLOGY FORCES CHANGES IN THE OLD OVERTHEAIR DELIVERY SYSTEM 9312020034 931202 BUSINESS BRIEF AOI COAL CO DARMAC ASSOCIATES UNIT FILES FOR CHAPTER 11 PROTECTION AOI COAL CO KITTANNING PA SAID ITS DARMAC ASSOCIATES CORP UNIT FILED FOR REORGANIZATION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE MOVE COMES ON THE HEELS OF A SIMILAR FILING TWO WEEKS AGO BY AOI'S ADOBE CO UNIT IN ADDITION AOI SAID IT IS CONSENTING TO THE REMOVAL OF ITS COMMON STOCK FROM THE AMERICAN STOCK EXCHANGE SINCE IT NO LONGER MEETS THE EXCHANGE'S FINANCIAL AND OTHER GUIDELINES COMPANY OFFICIALS SAID THEY EXPECT THAT A MARKET FOR THE COMMON STOCK WILL DEVELOP OVER THE COUNTER DARMAC A COAL MINING AND PROCESSING COMPANY SUSPENDED OPERATIONS MARCH 9 AND WON'T BE ABLE TO MEET ITS OBLIGATIONS UNTIL OPERATIONS ARE RESUMED NO DECISION HAS BEEN MADE ABOUT WHETHER OR WHEN THAT MIGHT OCCUR FOR THE FIRST NINE MONTHS OF 1993 AOI REPORTED A NET LOSS OF 43 MILLION ON REVENUE OF 409 MILLION THAT COMPARES WITH A NET LOSS OF 99 MILLION ON REVENUE OF 276 MILLION A YEAR EARLIER 9312020033 931202 BONTON'S NOVEMBER SALES FELL YORK PA BONTON STORES INC SAID NOVEMBER SALES FELL 04 TO 405 MILLION FROM 407 MILLION A YEAR EARLIER THE DEPARTMENTSTORE CHAIN SAID SALES AT STORES OPEN AT LEAST A YEAR ROSE 06 FROM A YEAR EARLIER FOR THE FIRST 43 WEEKS OF ITS FISCAL YEAR BONTON'S SALES GREW 11 TO 2559 MILLION FROM 2532 MILLION SALES AT STORES OPEN AT LEAST A YEAR FELL 12 THE COMPANY OPERATES 35 STORES IN SECONDARY MARKETS IN PENNSYLVANIA NEW YORK MARYLAND AND WEST VIRGINIA 9312020032 931202 BUSINESS BRIEF INTUIT INC COMPANY MOVES TO CLEAR OBSTACLE TO CHIPSOFT MERGER FACED WITH GOVERNMENT ANTITRUST OBJECTIONS INTUIT INC MENLO PARK CALIF SAID IT TERMINATED AN OPTION TO ACQUIRE LEGAL KNOWLEDGE SYSTEMS INC CLEARING THE WAY FOR INTUIT'S PROPOSED MERGER WITH CHIPSOFT INC THE JUSTICE DEPARTMENT HAD RAISED ANTITRUST OBJECTIONS TO THE LEGAL KNOWLEDGE OPTION BECAUSE THE COMPANY LIKE CHIPSOFT MAKES WIDELY USED TAXPREPARATION SOFTWARE THE TWO TRANSCTIONS WOULD HAVE LEFT INTUIT WITH NEARMONOPOLY CONTROL OF THIS FAST GROWING SEGMENT OF PERSONALFINANCE SOFTWARE INTUIT A CREATOR OF FINANCE SOFTWARE AGREED IN SEPTEMBER TO ACQUIRE CHIPSOFT IN A STOCK SWAP VALUED AT ABOUT 300 MILLION AFTER RELINQUISHING RIGHTS TO LEGAL KNOWLEDGE INTUIT SAID YESTERDAY THAT INFORMAL TALKS WITH THE JUSTICE DEPARTMENT INDICATE SUGGEST THE WAITING PERIOD FOR THE CHIPSOFT MERGER WILL END SHORTLY SHAREHOLDERS OF BOTH COMPANIES ARE SCHEDULED TO VOTE ON THE MERGER DEC 10 INTUIT SAID IT PAID LEGAL KNOWLEDGE SHAREHOLDERS 13 MILLION IN CONNECTION WITH TERMINATION OF THE OPTION AGREEMENT 9312020031 931202 NEWCOR GETS ORDER FROM FORD BLOOMFIELD HILLS MICH NEWCOR INC SAID IT RECEIVED AN ORDER FOR AN AUTOMATEDAXLE ASSEMBLY SYSTEM FROM FORD MOTOR CO TERMS WEREN'T DISLOSED NEWCOR SAID THE SYSTEM WILL BE INSTALLED NEXT FALL AT A FORD FACILITY IN STERLING HEIGHTS MICH NEWCOR DESIGNS AND MAKES CUSTOM MACHINES AND MANUFACTURING SYSTEMS PRECISION MACHINED PARTS AND MOLDED RUBBER AND PLASTIC PRODUCTS 9312020030 931202 INTERNATIONAL BRIEF GENERAL ELECTRIC CO UK COMPANY POSTS GAIN OF 11 IN FIRSTHALF PROFIT BRITAIN'S GENERAL ELECTRIC CO SAID THAT PRETAX PROFIT FOR THE FIRST SIX MONTHS EDGED UP 11 AS GAINS BY ITS POWER SYSTEMS AND TELECOMMUNICATIONS DIVISIONS WERE PARTLY OFFSET BY MARGIN PRESSURE IN CONTINENTAL EUROPE AND HIGHER DEVELOPMENT SPENDING THE DIVERSIFIED ENGINEERING GROUP NOT RELATED TO GENERAL ELECTRIC CO IN THE US POSTED PRETAX PROFIT OF 360 MILLION 5346 MILLION FOR THE FIRST HALF COMPARED WITH 356 MILLION IN THE YEAREARLIER PERIOD THE MARGINAL INCREASE IN PRETAX PROFIT WAS STILL STRONGER THAN PREVIOUS MARKET FORECASTS WHICH HAD BEEN LOOKING FOR A DECLINE TO AS LITTLE AS 340 MILLION THE 49 DIVIDEND BOOST TO 281 PENCE A SHARE FROM 268 PENCE A SHARE WAS IN LINE WITH SOME FORECASTS THE STOCK FELL 39 TO 3205 PENCE FROM 3335 PENCE THE DECLINE BEGAN AFTER THE COMPANY ISSUED A PROFIT WARNING PRIOR TO RELEASE OF RESULTS 9312020029 931202 BUSINESS BRIEF ZENECA INC FLORIDA CONCERN TO MARKET FUNGICIDE PRODUCT IN US ZENECA INC SAID IT REACHED AN AGREEMENT FOR MICROFLO CO LAKELAND FLA TO MARKET ZENECA'S CAPTAN FUNGICIDE IN THE US AGRICULTURAL MARKET TERMS WEREN'T DISCLOSED THE AGREEMENT EFFECTIVE JAN 1 DOESN'T INCLUDE MARKETING RIGHTS FOR PROFESSIONAL AND HOMEOWNER USES OF CAPTAN WHICH WILL CONTINUE TO BE SERVICED BY ZENECA PROFESSIONAL PRODUCTS NOR DOES IT INCLUDE THE USE OF CAPTAN FOR SEED TREATMENT PRODUCTS IN THE US ZENECA AG PRODUCTS A UNIT OF ZENECA INC WILL CONTINUE TO PRODUCE CAPTAN ZENECA INC BASED IN WILMINGTON DEL IS THE US UNIT OF ZENECA GROUP PLC AN BRITISH BIOSCIENCE COMPANY ZENECA ALSO WILL RETAIN REGULATORY AND PRODUCT MANAGEMENT RESPONSIBILITIES FOR CAPTAN AND CONTINUE TO MARKET THE FUNGICIDE OUTSIDE THE US MICROFLO IS A CLOSELY HELD AGRICULTURAL CHEMICAL COMPANY 9312020028 931202 ABITIBIPRICE TO SELL PRICE WILSON MONTREAL ABITIBIPRICE INC SAID IT PLANS TO SELL ITS PRICE WILSON DIVISION TO PERKINS PAPERS LTD FOR ABOUT 20 MILLION CANADIAN DOLLARS US15 MILLION PRICE WILSON WHICH MAKES INDUSTRIAL PAPER TOWELS FOLDING CARTONS AND PAPER BAGS IN LACHUTE QUEBEC HAD C37 MILLION IN SALES IN 1992 PERKINS PAPERS MONTREAL MAKES TISSUE AND PAPER TOWELS ABITIBIPRICE TORONTO SAID THE SALE IS IN LINE WITH ITS STRATEGY OF FOCUSING ON GROUNDWOODPAPER PRODUCTION THE TRANSACTION IS SUBJECT TO FINANCING ARRANGEMENTS AND BOARD APPROVALS 9312020027 931202 ECONOMY ECONOMISTS LOSE A KEY INDEX AS GM DOES AWAY WITH 10DAY SALES REPORTS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT WHEN IRAQ INVADED KUWAIT IN AUGUST 1990 ONE OF THE FIRST INDICATORS THAT US CONSUMERS WERE SUDDENLY SITTING ON THEIR WALLETS WAS AN ANEMIC 10DAY CARSALES REPORT AND WHEN THE STOCK MARKET CRASHED IN 1987 THE NEXT TALLY OF VEHICLE SALES FOR A 10DAY PERIOD GAVE AN EARLY SIGN THAT THE ECONOMY WAS GOING TO KEEP CRUISING ALONG DESPITE WALL STREET'S WOES BUT NOW AUTO MAKERS ARE POISED TO STOP REPORTING THEIR 10DAY CARSALES DATA AND THE RESULT WILL BE THE LOSS OF ONE OF THE FEW FLASH ECONOMIC INDICATORS AVAILABLE TO ECONOMISTS GENERAL MOTORS CORP ANNOUNCED YESTERDAY THAT IT WILL REPORT ITS VEHICLE SALES ONLY ON A MONTHLY BASIS BEGINNING JAN 1 CHRYSLER CORP QUIT REPORTING 10DAY SALES IN 1991 I'VE NEVER BEEN A BIG FAN OF 10DAY SALES ALEXANDER J TROTMAN THE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FORD MOTOR CO SAID YESTERDAY HE ADDED THAT FORD WOULD QUITE LIKELY DUMP THE 10DAY SALES REPORT TOO THERE'S A LOT OF VARIATION IN 10DAY SALES AND TO MAKE SENSE OF IT ISN'T VERY PRODUCTIVE BACK IN 1921 UNDER THE LEGENDARY FORMER CHAIRMAN ALFRED P SLOAN GM STARTED TALLYING CAR SALES EVERY 10 DAYS AS A MANAGEMENT TOOL THE AUTO INDUSTRY HAS PUBLICLY REPORTED 10DAY VEHICLE SALES SINCE 1955 AND IT HAS BEEN THE ONLY MAJOR INDUSTRY TO DO SO YET THE MEASURE HAS LOST ITS VALUE AS A MANAGEMENT DEVICE AND IN RECENT YEARS CAR COMPANY EXECUTIVES HAVE COME TO VIEW 10DAY CAR SALES AS A DISTRACTION THAT HAS BECOME INCREASINGLY MISLEADING BECAUSE OF FLEET SALES INCENTIVES AND OTHER ONETIME EVENTS STILL MANY ECONOMISTS SAY THEY WILL LAMENT THE DEATH OF 10DAY CARSALES REPORTING THE 10DAY SALES GAVE A PRETTY GOOD GLIMPSE OF WHAT WAS HAPPENING TO CONSUMER SPENDING IN THE ECONOMY ON AN ONGOING BASIS SAYS SUNG WON SOHN CHIEF ECONOMIST FOR NORWEST CORP THIS WAS REALLY ABOUT THE FIRST NUMBER FOR THE MONTH JUST PASSED ROBERT DEDERICK CHIEF ECONOMIST FOR NORTHERN TRUST CO CONCEDES THAT THE 10DAY SALES HAD PLENTY OF STATISTICAL VARIATION OR NOISE BECAUSE OF THE SHORT TIME SPAN STILL MR DEDERICK SAID 10DAY REPORTS HAD LESS NOISE THAN SOME MONTHLY GOVERNMENT REPORTS AND WERE ALWAYS WORTH LOOKING AT IT'S NOT THE RESPONSIBILITY OF AUTOMOBILE COMPANIES TO KEEP ECONOMISTS HAPPY AND I'M SURE THEY HAVE THEIR REASONS BUT WE'LL MISS THEM HE SAID BACK IN 1955 WHEN THE INDUSTRY FIRST WENT PUBLIC WITH 10DAY REPORTS THE US CAR MARKET WAS MUCH SIMPLER ALMOST ALL CARS WERE USMADE AND SOLD DIRECTLY TO CONSUMERS ALL THAT HAS CHANGED TODAY FOREIGN NAMEPLATES CLAIM A THIRD OF THE MARKET AND MANY OF THEM ARE NOT REPORTED ON A 10DAY BASIS AND BIG SALES TO RENTAL FLEETS CAN CAUSE THE 10DAY NUMBERS TO FLUCTUATE SHARPLY IN TODAY'S CLUTTERED AND CONFUSED MARKET 10DAY SALES AREN'T A VERY TRUE INDICATION OF WHAT'S HAPPENING SAYS A GM SPOKESMAN THE MOVE AWAY FROM 10DAY SALES REPORTING COMES AT A TIME WHEN CAR COMPANIES HAVE MORE INFORMATION THAN EVER BECAUSE OF COMPUTERIZED SALES REPORTING MANY DETROIT EXECUTIVES NOW STUDY DAILY SUMMARIES OF THEIR COMPANY'S SALES BUT MR TROTMAN FORD'S CHIEF EXECUTIVE VOWS TO STOP LOOKING AT DAILY REPORTS BECAUSE HE SAYS IT'S MORE IMPORTANT TO FOCUS ON LONGTERM DATA EVEN SO WARD'S AUTO REPORTS A WEEKLY INDUSTRY TRADE LETTER MAY TRY TO KEEP 10DAY REPORTS ALIVE WE'RE GOING TO SEE IF IT WILL BE POSSIBLE TO DO A MEANINGFUL SORT OF ESTIMATE SAID DAVID SMITH PUBLISHER OF WARD'S WARD'S CURRENTLY ESTIMATES 10DAY SALES FOR CHRYSLER 9312020026 931202 CREDIT RATINGS DIGITAL EQUIPMENT CORP MAYNARD MASS MOODY'S INVESTORS SERVICE INC DOWNGRADED THIS COMPUTER MAKER'S SHORT AND LONGTERM DEBT RATINGS CITING INTENSE INDUSTRY COMPETITION WEAK WORLDWIDE ECONOMIES AND THE FINANCIAL IMPACT OF DIGITAL'S RESTRUCTURING ABOUT 1 BILLION OF DEBT IS AFFECTED SENIOR UNSECURED LONGTERM DEBT WAS DOWNGRADED TO SINGLEA3 FROM SINGLEA2 SHORTTERM DEBT WAS CUT TO PRIME2 FROM PRIME1 DIGITAL HAS VERY LITTLE SHORTTERM DEBT A MOODY'S SPOKESMAN SAID THE COMPANY HAS CUT COSTS IN THE FACE OF RAPIDLY DECLINING GROSS MARGINS MOODY'S SAID BUT ADDITIONAL RESTRUCTURING ACTIONS WILL BE REQUIRED IF REVENUE GROWTH DOES NOT RESUME AND MARGIN PRESSURES CONTINUE MOODY'S HAS TAKEN A HARD LOOK AT THE WHOLE INDUSTRY AND GIVEN ALL THE PRESSURES AND CHANGES THAT HAVE MOVED THROUGH THE INDUSTRY OVER THE PAST TWO YEARS THE DOWNGRADE ISN'T SURPRISING A DIGITAL SPOKESMAN SAID HOWEVER I AM ENCOURAGED THAT THEY MAINTAINED US AT A HIGH INVESTMENT GRADE AND THAT THEY RECOGNIZED OUR STRONG BALANCE SHEET 9312020025 931202 BUSINESS BRIEF ROBERT MONDAVI WINERY SECONDQUARTER RESULTS TO FALL BELOW PROJECTIONS ROBERT MONDAVI WINERY SAID FISCAL SECONDQUARTER RESULTS ARE EXPECTED TO FALL BELOW ANALYSTS' PROJECTIONS BECAUSE CONTINUED WEAKNESS IN THE CALIFORNIA ECONOMY HAS REDUCED DEMAND FOR PREMIUM WINES ANALYSTS HAD PROJECTED NET INCOME OF ABOUT 39 CENTS A SHARE FOR THE PERIOD ENDING DEC 31 THE WINERY WASN'T MORE SPECIFIC ABOUT THE SHORTFALL THE OAKVILLE CALIF COMPANY WENT PUBLIC IN JUNE TRADING AS HIGH AS 1425 A SHARE YESTERDAY IT CLOSED AT 10 A SHARE DOWN 375 CENTS IN TRADING ON THE NASDAQ STOCK MARKET THE SECONDQUARTER ANNOUNCEMENT CAME AFTER CLOSE OF TRADING 9312020024 931202 WHO'S NEWS PANHANDLE EASTERN CORP PANHANDLE EASTERN CORP HOUSTON THE BOARD NAMED TWO EXECUTIVE VICE PRESIDENTS TO NEW POSTS BUT WITH ESSENTIALLY THE SAME RESPONSIBILITIES AS BEFORE GEORGE L MAZANEC 57 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE CHAIRMAN PAUL M ANDERSON 48 WAS NAMED PRESIDENT OF THE NATURALGAS PIPELINE CONCERN MR ANDERSON TAKES OVER THAT TITLE FROM DENNIS HENDRIX 53 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW MR HENDRIX SAID MR MAZANEC WILL CONTINUE TO CONCENTRATE ON MARKETING AND REGULATORY ACTIVITIES AND THAT MR ANDERSON WILL CONTINUE TO FOCUS ON THE COMPANY'S PIPELINE OPERATIONS HE ADDED THAT THE TWO EXECUTIVES SHARE THE DUTIES OF A CHIEF OPERATING OFFICER ALTHOUGH NO ONE HOLDS THAT TITLE 9312020023 931202 BUSINESS BRIEF SCIENTIFICATLANTA INC CONCERN IS PLANNING TO SELL 300000 TERMINALS TO TCI SCIENTIFICATLANTA INC SAID IT SIGNED A LETTER OF INTENT TO SELL AS MANY AS 300000 MULTIMEDIA TERMINALS TO TELECOMMUNICATIONS INC TERMS WEREN'T DISCLOSED A SPOKESMAN FOR SCIENTIFICATLANTA A MAKER OF ELECTRONICS AND COMMUNICATION SYSTEMS SAID THE TIME FRAME DURING WHICH THE UNITS WILL BE BOUGHT HASN'T BEEN DETERMINED TCI THE CABLE OPERATOR BASED IN ENGLEWOOD COLO PLANS TO BUILD AN ADVANCED TELECOMMUNICATIONS NETWORK FOR MOST OF ITS SERVICE AREAS THROUGHOUT THE US IN THE NEXT FOUR YEARS THE TERMINALS WILL OFFER INTERACTIVE AND MULTIMEDIA SERVICES TO TCI'S CABLETV SUBSCRIBERS INCLUDING ADVANCED PAYPERVIEW ORDERING OF SPECIAL EVENTS AND MOVIES ENHANCED HOMESHOPPING SERVICES AND ELECTRONICPROGRAM GUIDES 9312020022 931202 WHO'S NEWS CONVERSION INDUSTRIES INC CONVERSION INDUSTRIES INC PASADENA CALIF DONALD B CLARK 51YEAROLD PRESIDENT WAS NAMED A DIRECTOR OF THIS FINANCIALSERVICES CONCERN INCREASING THE BOARD TO EIGHT MEMBERS 9312020021 931202 CORPORATE FOCUS AT&T'S NETWORK EQUIPMENT UNIT IS BOUNCING BACK COMPANY BROADENS ITS PRODUCT LINE TO PLUG INTO INTERACTIVE REVOLUTION BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AT&T'S NETWORK EQUIPMENT UNIT SCORNED A FEW YEARS AGO AS A DRAG ON THE COMPANY HAS ROARED BACK TO LIFE WITH MAJOR BABY BELL CONTRACTS AND A BROADER SALES STRATEGY THE NETWORK SYSTEMS UNIT WHICH IS THE FORMER WESTERN ELECTRIC CO AND GENERATES ABOUT 17 OF AMERICAN TELEPHONE & TELEGRAPH CO'S 65 BILLION ANNUAL REVENUE IS THRIVING AT A TIME WHEN THE COMPANY'S CASH COW THE LONGDISTANCE BUSINESS IS FLAT AND GETTING CLOBBERED BY RIVALS IN THE CONSUMER MARKET NETWORK SYSTEMS WILL POST SALES GROWTH OF 10 THIS YEAR AND 20 IN 1994 COMPANY EXECUTIVES PREDICT NOW AT&T IS BROADENING THE UNIT'S SALES EFFORTS TO AIM AT THE INTERACTIVE REVOLUTION HOPING TO SELL ALL MANNER OF NEW GEAR TO PHONE COMPANIES AND CABLE SYSTEMS SET TO INVEST BILLIONS OF DOLLARS TO TURN THEIR WIRES INTO INTERACTIVE SYSTEMS THAT CAN CARRY PHONE DATA AND NEW VIDEO SERVICES THE EQUIPMENT UNIT ALSO IS PUSHING VIDEO SERVERS TO STORE AND DELIVER PROGRAMMING TO THE HOME THE TRANSITION TO THE MULTIMEDIA NETWORKS OF THE FUTURE IS A HUGE PROJECT SAYS RICHARD MCGINN THE NEW PRESIDENT OF AT&T NETWORK SYSTEMS THE NEXT 18 MONTHS IS GOING TO BE A HUGE BATTLEGROUND MR MCGINN PEGS THE REBOUND AT NETWORK SYSTEMS WHICH GENERATES SOME 11 BILLION IN ANNUAL SALES SUPPLYING LOCAL PHONE COMPANIES WITH SOPHISTICATED SWITCHING SYSTEMS TO A BROAD PRODUCT LINE BUT THE UPTURN ALSO OWES MUCH TO THE TROUBLES AT AT&T'S PRIMARY RIVAL IN THE US MARKET NORTHERN TELECOM LTD THE CANADIAN EQUIPMENT MAKER'S PROBLEMS SHIPPING UPDATED SOFTWARE FOR ALREADYINSTALLED SWITCHES HAS ANGERED BELL CUSTOMERS AND OPENED THE DOOR FOR AT&T TO TAKE BACK MUCH OF THE MARKET SHARE IT LOST IN THE 1980S YOU'VE GOT TO GIVE AT&T A LOT OF CREDIT THEY'VE REALLY PUT TOGETHER A GOOD PRODUCT LINE AND SALES STRATEGY THAT APPEARS TO BE PAYING OFF SAYS ONE NORTHERN INSIDER IN FACT INDUSTRY ANALYSTS SAY AT&T'S COMEBACK REPRESENTS A SEA CHANGE IN THE HOTLY COMPETITIVE US MARKET FOR DIGITAL SWITCHING EQUIPMENT AT&T'S US SHARE WHICH CAME TO ABOUT 47 LAST YEAR IS EXPECTED TO GROW TO ABOUT 50 OF A 6 BILLION MARKET BY THE END OF THIS YEAR WHILE NORTHERN'S SHARE COULD SINK TWO POINTS TO 33 PROJECTS MICHAEL ARELLANO AN ANALYST AT NORTHERN BUSINESS INFORMATION INC A NEW YORK RESEARCH FIRM MR MCGINN SAYS HE PLANS TO INCREASE THAT SHARE FURTHER TO 60 WITHIN A COUPLE OF YEARS AT THE SAME TIME AT&T NETWORK SYSTEMS HAS PUT FURTHER DISTANCE BETWEEN ITSELF AND FOREIGN ENTRANTS SUCH AS GERMANY'S SIEMENS AG AND TELEFON AB LM ERICSSON OF SWEDEN THAT IS A REMARKABLE TURNAROUND FROM THE 1980S WHEN NORTHERN AND OTHER NIMBLE RIVALS HAD STRIPPED AT&T'S MARKET SHARE TO 41 BY 1990 FROM 77 IN 1981 THE YEAR BEFORE AT&T AGREED TO BREAK ITSELF UP WE'RE TAPPED OUT IN TERMS OF OUR CAPACITY TO BUILD SWITCHES SAYS AT&T'S MR MCGINN WHO KEEPS IN HIS OFFICE A SILVERCOATED WORK BOOT EMPLOYEES GAVE HIM IT CARRIES A CAPTION ON HOW HIS INCESSANT WHINING ABOUT SALES TARGETS AND COSTCUTTING IS IMPROVING AT&T'S BUSINESS WE'RE RUNNING FULL SHIFTS AND CAN'T POSSIBLY BUILD ANOTHER MACHINE WITHOUT ADDING ANOTHER PLANT MUCH OF THIS COULD CHANGE IN A BLINK A LOUSY ECONOMY COULD LEAD A CUSTOMER TO DELAY OR CANCEL ORDERS WHILE A RIVAL'S HOT NEW PRODUCT COULD SLOW AT&T'S ADVANCE AT&T THIS WEEK LOST A MAJOR ORDER FOR CELLULARNETWORK EQUIPMENT FROM BELLSOUTH CORP TO GENERAL MOTORS CORP'S HUGHES NETWORK SYSTEMS AND ALCATELALSTHOM SA WHICH IS AT&T'S MAJOR RIVAL ON THE WORLD STAGE PARTICULARLY IN CHINA AND EUROPE THE BELLSOUTH ORDER WAS A SOBERING REMINDER THAT AT&T RULES THE US MARKET LARGELY AT THE PLEASURE OF ITS BABY BELL CLIENTS WHICH HAVE BEEN MIFFED LATELY THAT AT&T WILL ENCROACH SOMEWHAT ON THEIR TURF BY ACQUIRING CELLULAR SERVICE CONCERN MCCAW CELLULAR COMMUNICATIONS INC BUT MR MCGINN BRUSHES ASIDE SUCH CONCERNS NOTING THAT AT&T RECEIVED BIG ORDERS FOR CELLULAR EQUIPMENT FROM THREE BELL COMPANIES SHORTLY AFTER THE MCCAW TRANSACTION WAS ANNOUNCED THE SWITCHING SYSTEMS THAT THE AT&T UNIT SELLS ARE AMONG THE MOST SOPHISTICATED COMPUTERS ON EARTH AND CAN COST AS MUCH AS 30 MILLION EACH WITH MORE THAN 10 MILLION LINES OF SOFTWARE CODE SOCALLED CENTRAL OFFICE SWITCHES HANDLE MILLIONS OF PHONE AND DATA CALLS AN HOUR TIMING AND TRACKING THEM FOR BILLING PURPOSES AND PROVIDING CONFERENCE CALLING AND CALL WAITING AT THE PUSH OF A TOUCHTONE BUTTON SUCH SERVICES REQUIRE HUNDREDS OF MILLIONS OF DOLLARS TO DEVELOP R&D CAN RUN FROM 8 TO 15 OF THE PRICE OF A SWITCH SAYS DAN STANZIONE WHO RUNS AT&T'S SWITCH BUSINESS YET THE PRICING FOR SWITCHES WHILE STABLE IS AT ONLY ONETHIRD OF WHAT THE GEAR COULD FETCH THREE YEARS AGO PRICED BASED ON THE NUMBER OF PHONE LINES THEY HANDLE SOME SWITCHES SELL FOR AS LOW AS 100 A PHONE LINE WHILE MORE SOPHISTICATED SYSTEMS FOR METROPOLITAN SERVICES SELL FOR UPWARDS OF 250 TO 300 A LINE THE GAME IS CHANGING MR MCGINN SAYS NOTING THAT PHONE COMPANIES ARE LESS TOLERANT OF SOFTWARE BUGS AND OTHER FOULUPS THAT MAY HURT THEIR ABILITY TO RESPOND QUICKLY TO FUTURE COMPETITION THESE CUSTOMERS WANT TO BUY QUARTS OF DIAL TONE AND DO SO RELIABLY SO THEY CAN FOCUS ON GROWING THEIR REVENUE STREAM WITH NEW SERVICES AND MARKETING BEING ABLE TO DELIVER ON THESE NEEDS HAS ALLOWED AT&T NETWORK SYSTEMS TO RECORD 50 PROFIT GROWTH THIS YEAR TO ABOUT 130 MILLION FROM A YEAR AGO ESTIMATES ANALYST JACK B GRUBMAN OF PAINEWEBBER INC HE PROJECTS THE UNIT CAN GAIN 10 TO 15 MARKET SHARE POINTS IN THE MARKET FOR EQUIPMENT SALES TO THE SEVEN REGIONAL BELL COMPANIES BY 1997 AT&T HAS FINALLY GOTTEN THIS GAME TO BE PLAYED BY ITS RULES ON ITS TURF MR GRUBMAN SAYS AT&T'S BEST PROSPECTS MAY COME IN WHAT MR MCGINN THE NETWORK SYSTEMS CHIEF CALLS PROFESSIONAL SERVICES THE POTENTIALLY HIGHERPROFIT BUSINESS OF INTEGRATING CUSTOMERS' SYSTEMS BY OVERSEEING EQUIPMENT INSTALLATION AND KNITTING TOGETHER INCOMPATIBLE GEAR HE SAYS AT&T IS INVESTING TENS OF MILLIONS TO DEVELOP CUSTOM SOFTWARE FOR PHONE SERVICES THAT ARE UNIQUE TO EACH CARRIER OUR BUSINESS IS ALREADY 25 IN SOFTWARE AND SERVICES AND WILL BE OUR BIGGEST BUSINESS BY THE TURN OF THE CENTURY MR MCGINN PREDICTS IN HARDWARE AT&T HOPES TO BROADEN BEYOND SALES OF GEAR USED FOR FIBEROPTIC TRANSMISSION AND SWITCHES TO SUPPLY A NEW KIND OF TECHNOLOGY CALLED ASYNCHRONOUS TRANSFER MODE NETWORKS USING ATM SWITCHES WILL LINK CONSUMERS AND THEIR COMPUTERS IN HIGHSPEED INTERACTIVE NETWORKS THAT CAN CARRY PHONE DATA AND HIGHDEFINITION TV TRAFFIC SIMULTANEOUSLY THROUGH A SINGLE PHONE OR CABLETV LINE MR MCGINN SAYS HIS UNIT WILL SELL ABOUT 150 MILLION OF ATM GEAR NEXT YEAR IN THE US AND IN COUNTRIES SUCH AS HOLLAND GERMANY THE UNITED KINGDOM AND SWEDEN SIEMENS AND ERICSSON STRONGHOLDS WHILE MR MCGINN WON'T COMMENT ON FUTURE ORDERS ANALYSTS EXPECT BIG CUSTOMERS SUCH AS CHINA TO WEIGH IN SOON WITH NEW ORDERS FOR AT&T GEAR PLANTING THE COMPANY FIRMLY AS A MAJOR ASIAN SUPPLIER AND SEVERAL MULTIBILLIONDOLLAR ORDERS FROM OTHER PHONE GIANTS SUCH AS GTE CORP COULD COME IN THE NEXT FEW MONTHS 9312020020 931202 COMMODITIES PRECIOUSMETALS PRICES RISE AMID FAVORABLE NEWS ABOUT ECONOMY AND BUYING BY INDUSTRIAL USERS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS PRICES SOARED ON POSITIVE ECONOMIC NEWS AND A FLOOD OF BUYING BY INDUSTRIAL CONSUMERS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY RALLIED 470 TO 37660 AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT WAS UP 222 CENTS TO 4687 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JANUARY DELIVERY ROSE 730 TO 37490 AT MIDMORNING YESTERDAY BANK DEALERS BEGAN AGGRESSIVELY BUYING GOLD AND OTHER PRECIOUSMETALS FUTURES CONTRACTS APPARENTLY TO LOCK IN SUPPLIES TO ACCOMMODATE BUYING ORDERS FOR METALS THEY RECEIVED FROM INDUSTRIAL USERS THE CHIEF INDUSTRIAL CONSUMERS OF PRECIOUS METALS ARE THE JEWELRY AND ELECTRONICS INDUSTRIES FOR GOLD AND THE AUTOMOTIVE AND PHOTOGRAPHIC INDUSTRIES FOR PLATINUM AND SILVER RESPECTIVELY THE PRICE OF PLATINUM WHICH HAS BEEN A DRAG ON PRECIOUSMETALS MARKETS RECENTLY BECAUSE OF THE WEAKNESS OF THE JAPANESE ECONOMY ROSE EARLY YESTERDAY IN RESPONSE TO A 719POINT RALLY IN THE NIKKEI INDEX OF JAPANESE STOCKS ANALYSTS SAID THE MARKET ALSO GOT A BOOST FROM THE LATEST IN A SERIES OF POSITIVE GOVERNMENT REPORTS THE MONTHLY US PURCHASING MANAGERS' REPORT THE ECONOMIC STATISTICS ARE VERY ENCOURAGING THE PURCHASING MANAGERS' INDEX GOOD CONSUMERCONFIDENCE FIGURES RECENT EMPLOYMENT FIGURES ALL THESE SHOW AN ACCELERATION IN THE US ECONOMY SAID FRED DEMLER METALS ECONOMIST FOR ED & F MAN PRECIOUSMETALS MARKETS ARE HYPERSENSITIVE TO INDICATIONS OF INFLATION AND SOME ANALYSTS SAY THE MARKET WAS REACTING YESTERDAY TO SOME TRADERS' BELIEFS THAT THE POSITIVE GOVERNMENT REPORTS MAY PREVIEW A PICKUP IN INFLATIONARY ACTIVITY THE FOCUS OF THE MARKET IS THE POTENTIAL FOR ECONOMIC GROWTH NOT ONLY HERE BUT SPREADING TO EUROPE AND THEN THE FAR EAST SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH I THINK THE FOCUS WILL CONTINUE TO BE ON GROWTH AND THE POTENTIAL FOR FUTURE INFLATION THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 COMMODITY FUTURES CONTRACTS ALSO ROSE 221 POINTS YESTERDAY TO 22020 THE MOVEMENT OF THE INDEX HAS BEEN VOLATILE LATELY IN PART BECAUSE OF THE CHOPPY SWINGS OF PRECIOUSMETAL AND GRAINFUTURES PRICES ANALYSTS SAID THE CRB RALLY YESTERDAY FED THE BULLISH SENTIMENT AMONG GOLDFUTURES TRADERS ANALYSTS EXPECT GOLD PRICES TO CONTINUE TO EASE HIGHER IN COMING WEEKS IN PART BECAUSE THE HOLIDAY SEASON IS TRADITIONALLY A TIME OF STRONG DEMAND FOR JEWELRY JEWELERS ARE NORMALLY BIG BUYERS OF GOLD AND OTHER PRECIOUS METALS AT THIS TIME IN OTHER COMMODITY MARKETS COPPER COPPER AND OTHER BASE METALS PRICES NEARLY MATCHED THE GAINS IN PRECIOUSMETALS MARKETS AT THE COMMODITY EXCHANGE COPPER FOR MARCH DELIVERY WAS UP 155 CENTS TO 7655 CENTS A POUND THE STOCKS OF COPPER AVAILABLE IN EXCHANGEAPPROVED WAREHOUSES FOR DELIVERY AGAINST ITS FUTURES CONTRACTS HAVE BEEN DWINDLING ANALYSTS SAID ORDERS FOR COPPER RODS AND WIRE HAVE BEEN SURGING AND SCRAP SUPPLIES ARE SAID TO BE VERY TIGHT INCREASING DEMAND FOR COPPER IS GENERALLY INTEPRETED AS AN INDICATION OF ROBUST ECONOMIC ACTIVITY BECAUSE COPPER IS USED BY MANY US INDUSTRIES INCLUDING THE HOUSING INDUSTRY ALUMINUM PRICES ALSO ROSE YESTERDAY AS OFFICIALS OF THE US AND RUSSIA MET IN WASHINGTON TO DISCUSS POSSIBLE PRODUCTION CUTBACKS BY RUSSIA LIVESTOCK & MEATS PRICES OF HOG FUTURES CONTRACTS REBOUNDED FROM A RECENT PRICE SLUMP AMID SIGNS THAT FARMERS WERE BALKING AT SELLING TO MEATPACKERS AT THE LOWER LEVELS IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE HOG CONTRACT FOR DECEMBER DELIVERY ROSE 04 CENTS A POUND TO SETTLE AT 4547 CENTS A POUND HOG PRICES HAVE BEEN DEPRESSED IN RECENT TRADING SESSIONS IN PART BECAUSE THE HOGS COMING TO MARKET ARE UNUSUALLY HEAVY THEIR WEIGHT HAS HELPED OFFSET A SLIGHT DECLINE IN THE NUMBER OF HOGS GOING TO SLAUGHTER SAID CHARLES LEVITT SENIOR MEAT ANALYST AT ALARON TRADING CORP CHICAGO THE SLAUGHTER RATE IS DOWN PARTLY BECAUSE MANY HOG FARMERS TRIMMED THEIR MARKETING PLANS IN THE WAKE OF THE RAINRELATED MIDWEST CROP DISASTER WHICH RAISED THE COST OF FEEDING GRAIN TO LIVESTOCK 9312020019 931202 INTERNATIONAL BRIEF PEARSON PLC COMPANY AGREES TO ACQUIRE UNIT OF UNITED NEWSPAPERS EXTENDING ITS REACH INTO ELECTRONIC PUBLISHING PEARSON PLC OWNER OF THE FINANCIAL TIMES AGREED TO BUY EXTEL FINANCIAL LTD FROM UNITED NEWSPAPERS PLC FINANCIAL TIMES GROUP LTD A PEARSON UNIT WILL PAY 617 MILLION 916 MILLION IN CASH AND REPAY A LOAN OF 118 MILLION MADE BY UNITED NEWSPAPERS THE MOVE PITS LONDONBASED PEARSON AGAINST OTHER GLOBAL SELLERS OF ELECTRONIC FINANCIAL NEWS INCLUDING KNIGHTRIDDER REUTERS AND DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL EXTEL IS EXPANDING INTO REALTIME PRICE QUOTES BUT ITS MAJOR BUSINESS IS FINANCIAL PROFILES OF 120000 INVESTMENT INSTRUMENTS INCLUDING STOCKS AND BONDS A PEARSON SPOKESMAN SAID IT OPERATES A FINANCIAL NEWSWIRE IN THE UK AND THROUGH A JOINT VENTURE WITH AGENCE FRANCE PRESSE ANOTHER NEWSWIRE IN EUROPE UNITED NEWSPAPERS SAID IT WILL REALIZE A NET GAIN OF MORE THAN 25 MILLION AS A RESULT OF THE SALE 9312020018 931202 LETTERS TO THE EDITOR DRUGPRICE INFLATION YOUR REPORT SHOWING THAT DRUGPRICE INCREASES ARE MODERATING DATA SHOW LOWER HEALTHCARE INFLATION AND MODERATE GROWTH IN THE ECONOMY OCT 18 WAS MARRED BY A SWEEPING AND HIGHLY QUESTIONABLE CONCLUSION THAT THE UNUSUAL DECLINE IN DRUG PRICES IN THE SPRING IS HISTORY YOU BASED YOUR CONCLUSION ON LABOR DEPARTMENT DATA FOR THE 1993 THIRD QUARTER DATA FROM THE SAME SOURCE HOWEVER SHOW THAT DRUG PRICES ACTUALLY DECLINED IN SEPTEMBER AT THE PRODUCER LEVEL BUT CHANGES OVER SUCH SHORT PERIODS REALLY DO NOT TELL US AS MUCH AS TRENDS OVER 12MONTH PERIODS THE LATEST 12MONTH CHANGE AS YOU POINTED OUT WAS A 38 INCREASE DOWN FROM 57 IN 1992 AND 94 IN 1991 CLEARLY THE LONGERTERM TREND LEADS TO THE CONCLUSION THAT DRUGPRICE INFLATION IS MODERATING SIGNIFICANTLY 9312020017 931202 WHO'S NEWS CONNECTICUT NATURAL GAS CORP CONNECTICUT NATURAL GAS CORP HARTFORD CONN JAMES P BOLDUC 44 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AND TO THE NEW POSITION OF SENIOR VICE PRESIDENT FINANCIAL SERVICES OF THIS UTILITY HOLDING COMPANY MR BOLDUC PREVIOUSLY VICE PRESIDENT CONSUMER SERVICES SUCCEEDS AS CHIEF FINANCIAL OFFICER A MARK ABRAMOVIC WHO LEFT THE COMPANY THE COMPANY ALSO NAMED HARRY KRAIZA JR 44YEAROLD VICE PRESIDENT ENERGY SERVICES AS SENIOR VICE PRESIDENT ENERGY SERVICES 9312020016 931202 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN DRUG COMPANIES HALT A LONGTIME SALES INCENTIVE FOR WHOLESALERS DRUG FIRMS ROUTINELY USED TO LET WHOLESALERS LOAD UP ON INVENTORY AHEAD OF TRADITIONAL JANUARY PRICE RISES THE PRACTICE WAS A POPULAR WAY OF BOOSTING YEAREND SALES TOTALS AND WHOLESALERS LIKED SUCH FORWARD BUYING BECAUSE IT COULD ACCOUNT FOR UP TO HALF THEIR PROFITS SAYS THOMAS SIMONE OF MCKESSON A DRUG WHOLESALER BUT WITH PRICE RISES NOW AVERAGING 2 TO 4 RATHER THAN THE 8 TO 10 OF A FEW YEARS AGO DRUG FIRMS SAY THEY CAN'T AFFORD THE PRACTICE IN OCTOBER DRUGMAKER RHONEPOULENC RORER AXED ITS YEAREND INCENTIVE PROGRAM ENTIRELY OTHER DRUG MAKERS LIMIT THE SIZE OF ORDERS THEY WILL FILL AHEAD OF A PRICE INCREASE OR STOP GIVING ADVANCE WARNING MR SIMONE SAYS PATRICK MILLER OF WALSH AMERICA AN ARIZONA DRUG DATABASE FIRM ADDS THAT WHOLESALERS CAN'T OFFSET THE LOST BENEFIT BY CHARGING PRICE INCREASES OF THEIR OWN MANY OF THE WHOLESALERS' CUSTOMERS HAVE FORMED BUYING GROUPS THAT EXERCISE CONSIDERABLE NEGOTIATING POWER HE SAYS WHOLESALERS' MARGINS ALWAYS THIN SLIPPED TO 128 IN 1992 SAYS THE NATIONAL WHOLESALE DRUGGISTS' ASSOCIATION NEW CEOS JETTISON AILING UNITS QUICKLY SO WHY DIDN'T THEIR PREDECESSORS COMPANIES ARE NEARLY FOUR TIMES MORE LIKELY TO DIVEST TROUBLED ACQUISITIONS IN THE YEAR A NEW CEO ARRIVES SAYS A STUDY BY MICHAEL WEISBACH A PROFESSOR AT THE UNIVERSITY OF ROCHESTER'S WILLIAM E SIMON GRADUATE SCHOOL OF BUSINESS WHILE IT MAY BE NO SURPRISE THAT NEW BLOOD BRINGS NEW ACTION DR WEISBACH ALSO THEORIZES ON WHY THE OLD BLOOD DIDN'T ACT THE OLD CEO MAY HOLD VISIONS A BIT LONGER THAN SHAREHOLDERS MIGHT WISH SAYS DR WEISBACH THE STUDY WHICH TRACKED 270 MAJOR ACQUISITIONS FROM 1971 TO 1989 ALSO FOUND THAT THERE IS A 14 CHANCE A FIRM WILL DIVEST AN AILING UNIT OUTSIDE ITS CORE BUSINESS IN A YEAR A NEW CEO JOINS BUT A FIRM IS LESS LIKELY TO DUMP A TROUBLED UNIT THAT IS PART OF ITS CORE BUSINESS WHY PARTLY BECAUSE EXECUTIVE STATUS AND PAYCHECK OFTEN ARE TIED TO THE SIZE OF CORE BUSINESSES DISCREET PARTYING RULES THE YULE EVEN AT FIRMS THAT DID WELL THIS YEAR SOCIAL FACTORS ALSO REMAKE THE MERRYMAKING WORKING PARENTS OFTEN WILL PREFER A SUMMER PICNIC TO A HOLIDAY DINNERDANCE SAYS PARTY PLANNERS WEST IN LOS ANGELES AND BOSTON'S CREATIVE GOURMETS SUGGESTS INOFFICE AFTERNOON PARTIES AS MORE INFORMAL CHEAPER AND LESS ALCOHOLDEPENDENT THAN NIGHT EVENTS LIQUOR LIMITS ARE COMMON THE BEVERLY HILTON HOTEL LA SAYS MANY FIRMS ISSUE ONLY TWO DRINK TICKETS PER GUEST SOME COMPANIES CAN AFFORD TO SPEND MORE THIS SEASON BUT THEY'RE UNCOMFORTABLE SHOWING IT SAYS LINDA SCHWARTZ OWNER OF FIRM AFFAIRS IN WELLESLEY MASS DITTO SAYS HOWARD GIVNER OF PAINT THE TOWN RED IN NEW YORK HE SAYS AN AVERAGE WALL STREET BASH FOR 500 COSTS 50 TO 100 PER PERSON PERHAPS HALF AS MUCH AS IN THE 1980S FLUSH AND FRUGAL FIRMS ALIKE OPT FOR CASH BARS HORS D'OEUVRES NOT DINNER AND BANS ON SPOUSES TO LIMIT SIZE THE RITZ CARLTON HUNTINGTON HOTEL IN PASADENA CALIF BALANCES THE DIP IN BIG FETES BY BOOKING MORE SMALLER PARTIES NUCLEAR FUSION HITS POWERINDUSTRY LOBBYISTS AS FOUR DC TRADE GROUPS PLAN TO MERGE NEXT YEAR THE AMERICAN NUCLEAR ENERGY COUNCIL NUCLEAR UTILITY MANAGEMENT COUNCIL US COUNCIL FOR ENERGY AWARENESS AND THE NUCLEAR DIVISION OF THE EDISON ELECTRIC INSTITUTE WILL FORM THE NUCLEAR ENERGY INSTITUTE MULTINATIONAL FIRMS THAT SHARE FINANCIAL FUNCTIONS LIKE ACCOUNTING ON A REGIONAL BASIS RATHER THAN COUNTRYBYCOUNTRY IN EUROPE CAN SAVE AN AVERAGE 10 MILLION OR 35 TO 45 SAYS CONSULTANT AT KEARNEY INC CHICAGO IT STUDIED 20 FIRMS INCLUDING FORD AND DUPONT GIVING TO AIDS GROUPS RANGED FROM 575 MILLION TO 850 MILLION IN 1992 ESTIMATES THE AMERICAN ASSOCIATION OF FUNDRAISING COUNSEL'S AAFRC TRUST FOR PHILANTHROPY NEW YORK THE GROUP ADDS THE FIGURE IS NOT THAT LARGE WHEN COMPARED WITH BUDGETS OF SOME NATIONAL NONPROFITS AND UNIVERSITIES BIG SNOWS BUILD BIG HOPES AFTER BIG SPENDING BY THE SKI INDUSTRY SKIRESORT OWNERS BREATHE A BIT EASIER THIS SEASON AFTER PLOWING SOME 500 MILLION INTO NEW SNOWMAKING EQUIPMENT AND BUILDING 170 NEW LIFTS SINCE 1988 NEW AND OLD HANDS ALIKE FELL FOR THE SPORT DURING LAST WINTER'S ABUNDANT SNOWFALL LAST YEAR SKIER VISITS ROSE 63 TO 54 MILLION INDIVIDUAL TRIPS TO THE SLOPES I'M REALLY HOPEFUL THAT THE CASUAL SKIERS SAW THAT THE RESORTS UPGRADED THEIR FACILITIES SAYS SKIP KING MARKETING DIRECTOR AT MAINE'S SUNDAY RIVER THIS SEASON'S NUMBER OF SKI TRIPS MAY BEAT LAST YEAR'S IF EARLY RESERVATIONS ARE MAINTAINED BOOKINGS AT SUNDAY RIVER RISE 40 WINTER PARK IN COLORADO SEES A 17 RISE SUGARBUSH RESORT IN VERMONT ALREADY HAS SOLD A RECORD NUMBER OF SEASON PASSES PRICIER RESORTS REPORT BIG GAINS TOO COLORADO'S VAIL AND BEAVER CREEK LOG A 50 JUMP IN BOOKINGS WHILE THOSE AT DEER VALLEY UTAH RISE 80 VACATIONERS NOW BOOK LONGER STAYS BUT THEY ALSO HAVE LEARNED TO WAIT UNTIL THE LAST MINUTE TO GET THE BEST PRICE DEALS BRIEFS PALM BEACH NATIONAL BANK & TRUST CO IN FLORIDA SELLS UNCUT SHEETS OF 1 AND 2 BILLS FOR GIFTWRAP OR FOR MAKING INTO ORIGAMI ITEMS LIKE A CASHINHAND TIE MOTORWORLD A PARAMUS NJ DODGEHYUNDAI DEALER WHOSE FLEET WAS DAMAGED BY JOYRIDING KIDS FINDS A SILVER LINING BY HOLDING A SCRATCH SCUFF & DENT SALE 9312020015 931202 MARKETING BRIEF COX ENTERPRISES INC CUSTOMERS IN OMAHA NEB TO TEST INTERACTIVE NETWORK COX ENTERPRISES INC SAID ITS CABLETELEVISION SUBSIDIARY WILL BEGIN TESTING A NEW INTERACTIVE NETWORK IN OMAHA NEB THE UNIT COX CABLE COMMUNICATIONS WHICH SERVES MORE THAN 17 MILLION CABLETV SUBSCRIBERS IN 17 STATES WILL BEGIN OFFERING MOVIES ON DEMAND AND OTHER SERVICES THROUGH THE NEW SYSTEM BY JUNE LATER IN THE YEAR SEVERAL THOUSAND CABLE CUSTOMERS IN OMAHA WILL BE OFFERED ADDITIONAL SERVICES INCLUDING MUSIC VIDEOS ON DEMAND ARCADE VIDEO GAMES INTERACTIVE MULTIMEDIA GUIDES TO LOCAL RESTAURANTS AND ENTERTAINMENT AND ELECTRONIC CLASSIFIED ADVERTISING COX BASED IN ATLANTA SAID THE INTERACTIVE TECHNOLOGY WAS DEVELOPED BY ICTV INC A CLOSELY HELD COMPANY BASED IN SANTA CLARA CALIF 9312020014 931202 WHO'S NEWS SPANAMERICA MEDICAL SYSTEMS INC SPANAMERICA MEDICAL SYSTEMS INC GREENVILLE SC CHARLES B MITCHELL WAS NAMED CHIEF EXECUTIVE OF THIS MAKER OF HEALTHCARE AND PACKAGING PRODUCTS MR MITCHELL 56 YEARS OLD HAS BEEN INTERIM CHIEF EXECUTIVE SINCE JULY WHEN THE COMPANY'S FOUNDER DONALD C SPANN ANNOUNCED PLANS TO RETIRE MR MITCHELL RETAINS HIS TITLE AS PRESIDENT BRIEN LAING A DIRECTOR SINCE 1998 WAS NAMED CHAIRMAN ALSO SUCCEEDING MR SPANN RICHARD COGGINS 36 WAS NAMED CHIEF FINANCIAL OFFICER AFTER SERVING AS VICE PRESIDENTFINANCE HE ALSO WAS NAMED A DIRECTOR FILLING A VACANCY FROM MR SPANN'S UNEXPIRED TERM 9312020013 931202 ERLY INDUSTRIES EXCHANGE OFFER LOS ANGELES ERLY INDUSTRIES INC BEGAN AN EXCHANGE OFFER TO HOLDERS OF 89 MILLION PRINCIPAL AMOUNT OF ITS 125 SUBORDINATED SINKING FUND DEBENTURES THAT WERE DUE TO BE REDEEMED YESTERDAY THE COMPANY IS OFFERING TO EXCHANGE THE EXISTING DEBENTURES FOR NEW 125 DEBENTURES DUE 2002 ERLY SAID IN A NOV 12 FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT WOULDN'T HAVE ADEQUATE CASH RESERVES TO REDEEM THE OUTSTANDING DEBENTURES UNLESS IT COMPLETES THE EXCHANGE OFFER 9312020012 931202 LETTERS TO THE EDITOR HE ISN'T THE FIRST ON NOV 4 IN THE ARTICLE RUNNING SCARED ELECTION DAY RESULTS MAKE CLINTON AGENDA HARDER SELL IN CONGRESS IT WAS REPORTED THAT VIRGINIA VOTERS ELECTED THEIR FIRST REPUBLICAN ATTORNEY GENERAL IN FACT JAMES S GILMORE III IS NOT THE FIRST REPUBLICAN ATTORNEY GENERAL IN VIRGINIA J MARSHALL COLEMAN WAS ELECTED TO THAT POSITION AS A REPUBLICAN IN 1977 COLEMAN THEN RAN FOR GOVERNOR IN 1981 AND 1989 AND LIKE FORMER ATTORNEY GENERAL MARY SUE TERRY LOST ON ELECTION DAY 9312020011 931202 INTERNATIONAL BRIEF FERRANTI INTERNATIONAL PLC GEC DROPS BID FIRM SEEKS TO BE PLACED IN RECEIVERSHIP BRITISH DEFENSEELECTRONICS COMPANY FERRANTI INTERNATIONAL PLC ASKED TO BE PLACED IN RECEIVERSHIP AFTER BRITAIN'S GENERAL ELECTRIC CO DROPPED ITS TAKEOVER BID FOR THE COMPANY FERRANTI SAID GEC WHICH ISN'T RELATED TO GENERAL ELECTRIC CO OF THE US ALLOWED THE BID TO LAPSE AFTER A LOOK INTO THE COMPANY'S BOOKS NEITHER COMPANY WOULD SPECIFY WHAT GEC DISLIKED IN THE BOOKS FERRANTI STOCK WAS SUSPENDED ON THE LONDON STOCK EXCHANGE AT THE COMPANY'S REQUEST YESTERDAY AT ONE PENCE A SHARE GEC'S FRIENDLY OFFER VALUED FERRANTI AT A PENNY A SHARE OR A TOTAL OF 101 MILLION 15 MILLION IN ADDITION PROPOSED TERMS OF THE TAKEOVER AGREEMENT WOULD HAVE REQUIRED GEC TO ASSUME ABOUT 140 MILLION OF FERRANTI'S DEBT FERRANTI'S TROUBLES BEGAN AFTER A MAJOR FRAUD WAS DISCOVERED FOLLOWING ITS 1987 ACQUISITION OF INTERNATIONAL SIGNAL & CONTROL GROUP PLC FERRANTI DISCOVERED FRAUDULENT CONTRACTS IN A UNIT OF INTERNATIONAL SIGNAL AFTER THE ACQUISITION BRITISH RECEIVERS TYPICALLY TRY TO SELL OFF ASSETS TO PAY WHAT DEBTS THEY CAN USUALLY THE COMPANY IS LIQUIDATED 9312020009 931202 SAFETY ADMINISTRATION SAYS HYUNDAI OTHERS WILL RECALL VEHICLES HYUNDAI MOTOR CO WHICH IS TRYING TO SHAKE ITS REPUTATION FOR SHODDY QUALITY IS RECALLING 515000 198689 EXCELS WITH MANUAL TRANSMISSIONS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ANNOUNCED THE HYUNDAI TRANSMISSIONS SOMETIMES JAM WHICH CAN CAUSE THE VEHICLES TO STOP SUDDENLY THE NHTSA SAID IN ITS MONTHLY SUMMARY LISTING DOZENS OF SAFETY ACTIONS AND INVESTIGATIONS HYUNDAI SAID THE PROBLEM RESULTS FROM INSUFFICIENT OIL CHANGES AND EXCEL OWNERS WILL BE ASKED TO BRING IN THEIR CARS FOR AN OIL CHANGE SEPARATELY THE ADMINISTRATION CLOSED AN INVESTIGATION INTO 199092 EXCELS AND FOUND THE TRANSMISSION ON THOSE MODELS POSED NO UNREASONABLE RISK ANOTHER RECALL REPORTED BY THE NHTSA WAS OF MAZDA MOTOR CO'S 626 AND 929 SEDANS MAZDA IS RECALLING 244000 OF THE 198892 SEDANS BECAUSE OF DOORLATCH PROBLEMS THE AGENCY SAID A MAZDA SPOKESMAN SAID THE COMPANY WILL NOTIFY CAR OWNERS OF THE RECALL ONCE IT DECIDES ON A PLAN TO FIX THE PROBLEM IN ADDITION THE NHTSA REPORTED THE RECALL OF 29500 VOLKSWAGEN MINIVANS WITH AIR CONDITIONING BECAUSE OF A PROBLEM WITH AN AIRFLOW DUCT THAT CAN BREAK AND HIT PASSENGERS THE NHTSA SAID IT IS UPGRADING THE FOLLOWING PRELIMINARY SAFETY INVESTIGATIONS TO ENGINEERING ANALYSES A STEP TOWARD RECALL 199293 NISSAN MAXIMA AIRBAG DEPLOYMENT 198993 JEEP WRANGLER AND JEEP CHEROKEE PARKING BRAKES AND FORD FSERIES SUPERDUTY PICKUP FUEL LINES THE NHTSA ALSO SAID IT IS OPENING PRELIMINARY INVESTIGATIONS INTO THE FOLLOWING POSSIBLE SAFETY PROBLEMS FORD MERCURY OR LINCOLN TOWN CAR CROWN VICTORIA AND GRAND MARQUIS HOODS THAT MAY FLY OPEN 199091 SAAB 900 FUEL SYSTEMS 1992 OLDSMOBILE TORONADO SEAT BELTS 1991 GMC AND CHEVROLET PICKUP FUELTANK SUPPORTS 198891 CHEVEROLET CAVALIER AND PONTIAC SUNBIRD ENGINE FIRES 1993 CHRYSLER JEEP GRAND CHEROKEE STEERING SHAFT 1987 ACURA LEGEND FUELTANK LEAKAGE IN ADDITION THE FEDERAL AGENCY CLOSED ENGINEERING ANALYSES INTO THE FOLLOWING AFTER FINDING NO DEFECTS FORD 199091 FSERIES AND BRONCO LIGHTTRUCK FRONT SEATS 198890 FORD TAURUS MERCURY SABLE AND LINCOLN CONTINENTAL POWER STEERING AND 198588 DODGE AND PLYMOUTH COLT ENGINE FIRES 9312020008 931202 LEISURE & ARTS TV SHARKS THE KING OF SWING AND SHELLSHOCKED OUTLAWS BY DOROTHY RABINOWITZ A PREGNANT WOMAN MEL HARRIS RECOVERING AFTER A BOUT WITH LEUKEMIA FINDS HERSELF PSYCHOLOGICALLY SPEAKING ALL AT SIXES AND SEVENS IN THIS FACTBASED FILM TO SETTLE HER MIND THE BROODING ALLISON DECIDES THAT THE ONE THING SHE NEEDS MOST IN HER SECOND TRIMESTER IS TO JOIN A CREW TAKING A SAILBOAT FROM FLORIDA TO RHODE ISLAND WHEN HER BOAT RUNS AFOUL OF HURRICANE BOB SHE AND TWO MALE CREW MEMBERS AS UNAPPETIZING A DUO OF BUFFOONS AS HAS EVER SET SAIL GET TOSSED ADRIFT ON A RAFT WITH NO FOOD OR WATER VIEWERS TUNING IN MAY FEEL THEMSELVES ADRIFT AS WELL DURING MOST OF THIS FILM WHICH IS PACKED STEM TO STERN WITH DREARY CHARACTERS THE HEROINE MOST ASSUREDLY INCLUDED THIS DISASTER FILM DOES ON THE OTHER HAND HAVE ITS MOMENTS MOST OF THEM PROVIDED BY A SCHOOL OF SHARKS WHO IT MUST BE SAID DON'T SHOW UP OFTEN ENOUGH HOW ONE LONGS AS THIS SAGA FLOWS ON TO SEE THOSE FINS AGAIN A DISCONSOLATE PROFESSOR OF PSYCHOLOGY TIM MATHESON FALLS IN LOVE WITH A HELPFUL STRANGER MIMI ROGERS WHO SAVES HIM FROM HURLING HIMSELF FROM A SPEEDING TRAIN THE SUICIDE PREVENTION TECHNIQUE EMPLOYED BY THIS STRANGER IE SEXUAL COUPLING ON THE SPOT ALONG WITH A HOARSE DIRECTIVE TO SEIZE THE MOMENT IS CLEARLY NOT THE SORT FOUND IN THE HOTLINE MANUALS THIS IS ONE OF THE FEW THINGS THAT IS CLEAR IN THIS RELENTLESSLY NONSENSICAL TV FILM NOIR ABOUT A STRING OF MURDERS COMMITTED BY A SEXOBSESSED BEAUTY THE ONLY OTHER THING AS IMMEDIATELY CLEAR IN THIS FILM FROM THE POLONE COMPANY TELEPLAY BY DEBORAH DALTON IS THAT THE CAUSE OF ALL THE MURDER AND TUMULT WILL INEVITABLY BE FOUND TO LIE IN THAT NEW ALLPURPOSE EXPLANATION FOR EVIL THAT GIFT TO DESPERATE SCRIPTWRITERS NAMELY CHILDHOOD SEX ABUSE THE FILM INDEED IS WORTH WATCHING AS A CASE STUDY IN THE WAY THAT ALL THE LATEST FASHIONS IN PSYCHOBLATHER ARE SNORTED UP AND DISPENSED AS THE DISTURBED ADVENTURESS IN QUESTION MS ROGERS WALTZES THROUGH THIS IN THE TRANCELIKE STATE THAT IS HER SPECIALTY THIS CHAPTER OF THE AMERICAN MASTERS SERIES TRACES THE CAREER OF THE MUSICIAN TO BECOME KNOWN AS THE KING OF SWING AND CREDITED WITH BRINGING JAZZ INTO THE MAINSTREAM BENNY GOODMAN'S BROTHER IS HERE TO RECALL THAT HIS FATHER WANTED ABOVE ALL THAT HIS SONS HAVE A LIFE HAPPIER AND FREER THAN HIS AND SO TO REALIZE THIS DREAM FOR HIS CHILDREN SENT THEM TO A FREE MUSIC SCHOOL THE KING OF SWING WOULD LATER TURN OUT IF THE TESTIMONY OF HIS CHILDREN IS TO BE BELIEVED A FATHER RATHER LESS CONCERNED WITH HIS CHILDREN'S HAPPINESS THAN HIS OWN WAS A SHARP AND WINNING BIOGRAPHY WHOSE LARGER SUBJECT IS THE JAZZ AGE ITSELF BETTE MIDLER STARS IN THIS THREEHOUR PRODUCTION SAID TO HAVE BEEN VETTED BY THE TALENTS INVOLVED IN THE ORIGINAL MUSICAL JEROME ROBBINS STEPHEN SONDHEIM ARTHUR LAURENTS AND JULE STYNE MS MIDLER THE TOUGHEST AND BRASSIEST MAMA ROSE EVER MAKES THE ROLE WORK NICELY YOU'LL KNOW HOW NICELY WHEN YOU HEAR HER BELT OUT HAVE AN EGGROLL MR GOLDSTONE BUT THE CREDIT FOR THE FILM'S SUCCESS WHICH IS CONSIDERABLE BELONGS BELONGS AT LEAST AS MUCH TO THE CAST OVERALL WHICH INCLUDES ED ASNER AS ROSE'S GRIM PAPA NOT LEAST THERE IS PETER RIEGERT WHO HAS A NOTABLE GIFT FOR IMBUING HIS PLAINFACEDSTRIVER ROLES WITH SEXUAL CHARM AS THE LOYAL HERBIE MR RIEGERT FILLS THE SCREEN STEALING SCENE AFTER SCENE MOST EVERYTHING COMES UP ROSES HERE ALL RIGHT THIS SERIES EMPLOYS A WIDE MIX OF COMMENTARIES DELIVERED BY FOLKLORISTS SCHOLARS ACTORS AND OTHER AUTHORITIES TO UNCOVER VARIOUS TALL TALES ABOUT THE WEST AND ITS BANDIT HEROES THE RESULT IS A LIVELY HOUR NOTWITHSTANDING THE HEAVY BURDEN INFLICTED BY A CEASELESSLY ARCH AND OTHERWISE HARDWORKING NARRATION THIS IS A FILM FOR INSTANCE WHICH INSTRUCTS US THAT JESSE JAMES A CIVIL WAR VETERAN MIGHT WELL HAVE BEEN A VICTIM OF POSTTRAUMATIC STRESS SYNDROME IN ADDITION TO BABBLE ON MR JAMES MOST OF IT SANE ENOUGH THERE IS A GOOD BIT OF DATA ON OTHER LESSER OUTLAWS LIKE BUTCH CASSIDY AND THE SUNDANCE KID WHOSE REPUTATION FOR DEEDS OF DERRINGDO AND GENERAL NOTORIETY ARE THE FILM ARGUES PURELY A HOLLYWOOD CREATION IF MOST VIEWERS WILL ALREADY HAVE FIGURED THAT OUT FOR THEMSELVES THEY CAN STILL ENJOY THE BOUNTIFUL SUPPLY OF DESERT FOOTAGE 9312020007 931202 SALLIE MAE AUTOMATION CONTRACT WASHINGTON STUDENT LOAN MARKETING ASSOCIATION SAID IT SIGNED A FIVEYEAR 55 MILLION CONTRACT WITH ACCOUNTING FIRM PRICE WATERHOUSE TO AUTOMATE ITS LOANSERVICE OPERATION TO STUDENTS PARENTS SCHOOLS AND LENDERS THE ASSOCIATION KNOWN AS SALLIE MAE IS THE NATION'S LARGEST HOLDER OF INSURED STUDENT LOANS THE COMPANY SAID THE INSTALLED TECHNOLOGY WILL ALLOW ITS WORK FORCE TO ELECTRONICALLY SCAN STORE AND ROUTE SOME 24 MILLION PIECES OF PAPER IT RECEIVES FROM BORROWERS EACH YEAR INSTEAD OF DOING SO BY HAND THE FIRST PHASE OF THE NEW TECHNOLOGY WILL ENTER USE IN MID1994 FULL IMPLEMENTATION IS EXPECTED BY 1996 A COMPANY SPOKESMAN SAID 9312020006 931202 FINANCING BUSINESS CRIIMI MAE INC CRIIMI MAE INC ROCKVILLE MD THE REAL ESTATE INVESTMENT TRUST SAID IT RAISED 265 MILLION FROM THE SALE TO THE PUBLIC OF 32 MILLION SHARES OF ITS CRI LIQUIDATING REIT INC SUBSIDIARY AT 9 A SHARE CRIIMI MAE SAID IT WILL USE 215 MILLION OF THE NET PROCEEDS TO BUY ADDITIONAL GOVERNMENTINSURED MORTGAGES AND ABOUT 49 MILLION TO REDUCE COSTS FROM HEDGES USED TO PROTECT AGAINST INTERESTRATE FLUCTUATIONS ON APPROXIMATELY 25 MILLION IN CORPORATE DEBT CRIIMI MAE NOW OWNS 565 OR ABOUT 17 MILLION OF CRI LIQUIDATING'S SHARES OUTSTANDING 9312020005 931202 WORLD MARKETS TOKYO TRADERS SNIFF AT EQUITIES' 44 REBOUND LONDON SHARES RALLY 21 ON BRITAIN'S BUDGET BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE TOKYO STOCK MARKET RALLIED AFTER JAPANESE GOVERNMENT OFFICIALS PROMISED TO TREAT THE AILING ECONOMY A SURGE ON WEDNESDAY GATHERED MOMENTUM THURSDAY MORNING FOLLOWING REPORTS THAT THE GOVERNMENT WILL ANNOUNCE FURTHER STIMULATIVE STEPS THE TOKYO MARKET CONTINUED TO RALLY THURSDAY MORNING IN TOKYO THE NIKKEI STOCK AVERAGE ENDED THE MORNING SESSION AT 1788719 UP 76188 OR 4 TRADERS SAID THE MARKET WAS REACTING TO NEWS THAT THE JAPANESE GOVERNMENT WOULD ANNOUNCE NEW ECONOMIC STIMULUS MEASURES INCLUDING MEASURES TO BOOST THE STOCK MARKET AS EARLY AS ON DEC 7 WHILE THERE WERE NO DETAILS IMMEDIATELY AVAILABLE JAPANESE WIRE SERVICES REPORTED THURSDAY MORNING THAT THE GOVERNMENT PLANS TO WIDEN POTENTIAL TAX CUTS AS WELL AS EASE RULES ON REALESTATE SALES AS AN EFFORT TO BOOST OPTIMISM ABOUT THE ECONOMY THE MORNING'S ACTION WAS UNBELIEVABLE SAID EMIKO SHINOHARA AN EQUITIESSALESWOMAN AT SG WARBURG SECURITIES IN TOKYO SHE SAID ORDERS WERE PARTICULARLY STRONG FROM OVERSEAS INVESTORS DOMESTIC CLIENTS ARE STILL HANGING BACK SHE SAID WEDNESDAY'S GAIN BY THE NIKKEI FOLLOWED TUESDAY'S 32783POINT RISE THAT BROKE A 1300POINT SLIDE OVER THE PREVIOUS WEEK THE TURNAROUND CAME AFTER PRIME MINISTER MORIHIRO HOSOKAWA AND HIS CABINET ON TUESDAY DROPPED THEIR RELUCTANCE TO ADDRESS THE ECONOMY AND PROMISED TO CONSIDER NEW STIMULATIVE STEPS TO HALT JAPAN'S ECONOMIC DOWNTURN ON WEDNESDAY MR HOSOKAWA CONTINUED THAT CAMPAIGN HE TOLD A BUDGET COMMITTEE OF THE LOWER HOUSE OF THE DIET OR PARLIAMENT THAT HE WOULD TAKE ADDITIONAL PUMPPRIMING ACTIONS HE ALSO SAID THE GOVERNMENT WOULD STUDY EASING PROPERTY TAXES IN ADDITION A DECLINE IN SHORTTERM INTEREST RATES BOOSTED THE MARKET STILL MANY ANALYSTS SAID MR HOSOKAWA'S GOVERNMENT HAS YET TO PROMISE ANY CONCRETE POLICIES AND TRADERS WERE STILL SKEPTICAL THAT HIS COALITION FORMED ONLY AROUND A CONSENSUS FOR POLITICAL REFORM WILL DELIVER MEDICINE NECESSARY TO HELP THE MARKET AND THE ECONOMY OVER THE LONG TERM UNLESS THE GOVERNMENT ACTUALLY DOES SOMETHING DRASTIC IT IS DIFFICULT TO BOOST SHARE PRICES SUBSTANTIALLY FURTHER TOSHIO OZAWA AN ANALYST AT KANKAKU SECURITIES CO SAID HE CALLED WEDNESDAY'S ADVANCE A TECHNICAL RALLY FROM THE STEEP DECLINE OVER THE PAST TWO WEEKS MR HOSOKAWA'S REMARKS SIMPLY MADE INVESTORS REFRAIN FROM ADDITIONAL SELLING BUT DIDN'T REALLY ENCOURAGE MORE BUYING BECAUSE THE NEW MEASURES AREN'T CONCRETE YOUICHI NAKATA AN ANALYST AT SANYO SECURITIES CO SAID ADDING THAT THE FEAR OF A SELLING SPIRAL HASN'T DISAPPEARED YET LONDON STOCKS THUNDERED UP TO SCORE THEIR BIGGEST ONEDAY GAIN AND RECORD TURNOVER FOR THIS YEAR ON RELIEF THAT BIG TAX INCREASES WEREN'T PART OF BRITAIN'S NEW BUDGET FRANKFURT SHARES JUMPED 16 ON INDICATIONS GERMAN INTERESTRATE CUTS ARE POSSIBLE THIS WEEK AFTER ALL ALSO FUELING GAINS ON OTHER EUROPEAN MARKETS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10839 UP 202 REFLECTING HIGHER MARKETS IN ALL REGIONS SECURITIES BROKERS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13116 UP 795 OR 65 WITH KANKAKU SECS OF JAPAN POSTING A 12 GAIN IN ITS LOCAL CURRENCY PIPELINES STOCKS TRAILED AT 13438 DOWN 269 OR 2 WITH ENRON OF THE US SLIDING 56 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX RALLIED 663 POINTS OR 21 TO 32332 UP 14 FOR THIS YEAR THE FT 30STOCK INDEX JUMPED 390 POINTS OR 16 TO 24575 VOLUME SURGED TO A 1993 HIGH OF 124 BILLION SHARES ABOUT DOUBLE USUAL DAILY TURNOVER A DAY EARLIER VOLUME WAS 5665 MILLION IN THE BUYING FRENZY THE FT 100 SOARED TO AN INTRADAY HIGH OF 32501 UP 832 POINTS EVEN AT ITS TRADING LOW OF 31903 THE INDEX WAS UP 234 POINTS THE SPARK CAME FROM WHAT DIDN'T HAPPEN IN THE NEW UK BUDGET IT LACKED AN INCREASE IN THE VALUEADDED TAX ON BEER SPIRITS NEWSPAPERS AND MAGAZINES AND LEFT IN PLACE A CORPORATE TAXCREDIT PACKAGE FOREIGN AND PENSION FUND INVESTORS AFTER SHYING AWAY FROM THE LONDON MARKET IN RECENT WEEKS BECAUSE OF ANXIETY ABOUT THE BUDGET RETURNED AND WERE EXPECTED TO STAY ACTIVE THOUGH SOME PROFITTAKING IS EXPECTED NOW FOLLOWING ROBUST GAINS THE PAST TWO DAYS ESPECIALLY AMONG RETAILERS AS MODERATE WAGE GROWTH AFFECTS CONSUMER SPENDING ANALYSTS PREDICTED THE MARKET WOULD CLIMB IN THE NEXT SEVERAL MONTHS WITH THE BRITISH BUDGET VIEWED AS FAVORABLE TO THE MARKET STOCKS ALSO COULD GET A BOOST FROM DECLINES IN EUROPEAN INTEREST RATES AND THE SUPPLY OF BRITISH BONDS AND A POSITIVE OUTLOOK FOR ECONOMIC GROWTH IN FRANKFURT THE DAX 30STOCK INDEX GAINED 3210 POINTS TO 208987 APPROACHING THE RECORD HIGH OF 209558 AND 29 OF THE ISSUES ADVANCED WHILE ONE DECLINED FOLLOWING COMMENTS BY THE GERMAN BUNDESBANK ON A 25 ANNUAL INFLATION RATE IN THE PAST THREE MONTHS IN LINE WITH CENTRAL BANK EXPECTATIONS SHARE PRICES WERE BOOSTED BY MARKET HOPES FOR A REDUCTION TODAY IN KEY GERMAN INTEREST RATES TO HELP STIMULATE THE ECONOMY THE MARKET ALSO GOT A BOOST FROM THE INTENTION IN BRITAIN'S NEW BUDGET TO CUT SPENDING MORE THAN HAD BEEN ANTICIPATED IN PARIS A 13 REBOUND BY THE THEMEPARK OPERATOR EURO DISNEY ON NEWS REPORTS OF A FINANCIAL STIMULUS FUELED A RALLY THAT TOOK THE MARKET UP 21 ALSO BOOSTING PRICES WERE MORE BULLISH US ECONOMIC INDICATORS AND BUYING OF INDEX STOCKS THAT HAD BEEN SOLD IN OPTIONS DEALINGS MOREOVER FRANCE'S RECORD 12 UNEMPLOYMENT RATE IN OCTOBER SPARKED SPECULATION THAT THE CENTRAL BANK MUST LOWER BENCHMARK INTEREST RATES IN AMSTERDAM MADRID AND BRUSSELS SHARES SCORED GAINS PARTLY ON STRONG PERFORMANCES IN EUROPEAN MARKETS AND HOPES FOR LOWER RATES IN STOCKHOLM EQUITIES GALLOPED UP 29 LED BY A 72 SURGE FOR A 14 ADVANCE OVER TWO SESSIONS BY VOLVO ON SPECULATION SHAREHOLDERS WILL DEFEAT ITS PROPOSED MERGER WITH RENAULT OF FRANCE AND IN ZURICH STOCKS JUMPED 13 ON A SHARPERTHANEXPECTED SLOWING IN THE SWISS INFLATION RATE IN TAIPEI SHARES SURGED 26 TO A 6 1/2MONTH HIGH LED BY GAINS IN THE PLASTICS SECTOR AND GOOD PROSPECTS FOR LARGE CAPITAL INVESTMENT AMID CONTINUING BULLISHNESS SPURRED BY POLITICAL STABILITY FOLLOWING ELECTIONS BUYING WAS HEAVY MOSTLY BY FOREIGN AND DOMESTIC FUNDS THAT FOCUSED ON LOWPRICED INDUSTRIAL BLUE CHIPS 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 9312020004 931202 ABREAST OF THE MARKET STOCKS SURGE 1313 POINTS AIDED BY RALLY OVERSEAS AND US DATA BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SHARP RALLY IN OVERSEAS STOCK MARKETS AND ENCOURAGING READINGS ON THE US ECONOMY CARRIED BLUE CHIPS TO THEIR HIGHEST LEVEL IN TWO WEEKS THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1313 OR 036 TO 369708 AT ITS MIDDAY PEAK THE AVERAGE BRIEFLY TOPPED ITS CLOSING RECORD OF 371077 THAT WAS SET NOV 16 BROADBASED INDEXES ALSO ADVANCED WITH THE BIGGEST GAINS IN THE NASDAQ STOCK MARKET THE NASDAQ COMPOSITE INDEX RALLIED 942 OR 125 TO 76381ITS BIGGEST ONEDAY POINT GAIN SINCE SEPT 22 THE RECENTLY BATTERED TOKYO STOCK MARKET CAME BACK TO LIFE OVERNIGHT AFTER THE JAPANESE GOVERNMENT SAID IT WOULD TAKE WHATEVER STEPS WERE NECESSARY TO REVIVE THE COUNTRY'S ECONOMY THE NIKKEI INDEX ROCKETED 44 HIGHER EUROPEAN STOCK MARKETS ALSO SURGED LED BY THE LONDON MARKET THE FTSE 100 INDEX POSTED ITS BIGGEST DAILY GAIN OF THE YEAR JUMPING 21 IN AN ENDORSEMENT OF THE UNITED KINGDOM GOVERNMENT'S BUDGET PLANS WHICH WERE DISCLOSED TUESDAY THE OVERSEAS STRENGTH PARTICULARLY IN TOKYO HELPED SOOTHE INVESTORS WORRIES RICHARD SCARLATA A NEWSLETTER EDITOR AT SUTTON FINANCIAL SERVICES SAID CONCERNS ABOUT FOREIGN MARKETS HAD BEEN ONE FACTOR DAMPING OPTIMISM ON WALL STREET A REPORT ON BUSINESS FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT OFFERED FURTHER ENCOURAGEMENT THE GROUP'S INDEX JUMPED TO 557 LAST MONTH UP FROM 538 IN OCTOBER A SOLID GAIN IN THE BOND MARKET ALSO BUOYED STOCKS LONGTERM TREASURYS ADDED MORE THAN 1/2 POINT AS A SLIGHTLY WEAKERTHANEXPECTED REPORT ON THIRDQUARTER GROSS DOMESTIC PRODUCT HELPED OFFSET THE STRENGTH OF THE PURCHASING MANAGERS' READING DESPITE THE POSITIVES MORE THAN HALF OF THE MARKET'S INTRADAY GAINS SLIPPED AWAY BY THE CLOSE IT'S AN INDICATION THAT THERE IS A GOOD AMOUNT OF SKITTISHNESS INVESTORS ARE TAKING WHATEVER OPPORTUNITIES THEY HAVE TO LOCK IN SOME PROFITS SAID ABBY COHEN MARKET STRATEGIST AT GOLDMAN SACHS & CO THE STANDARD & POOR'S 500 STOCK INDEX ADDED 010 OR 002 TO 46189 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCHED UP 048 OR 019 TO 25527 AND THE DOW JONES EQUITY MARKET INDEX ROSE 043 OR 010 TO 43736 ADVANCERS THOUGH HELD A RELATIVELY HEALTHY LEAD OVER DECLINERS ON THE BIG BOARD AT 1315 TO 804 VOLUME ON THE EXCHANGE INCHED UP TO ABOUT 2876 MILLION SHARES FROM 2864 MILLION TUESDAY THE RISE IN STOCK PRICES CAME AS INVESTORS RECEIVED SOME ENCOURAGING NEWS ON DIVIDENDS TUESDAY STANDARD & POOR'S SAID THAT 174 COMPANIES RAISED THEIR DIVIDENDS LAST MONTH UP FROM 146 IN THE SAME PERIOD LAST YEAR IT WAS THE LARGEST NUMBER OF INCREASES IN ANY MONTH THIS YEAR SAID ARNOLD KAUFMAN AN ANALYST AT S&P WHAT WE ARE SEEING IS THE CONTINUATION OF THE RECOVERY IN DIVIDEND ACTION AFTER TWO PRETTY POOR YEARS EIGHT COMPANIES DECREASED THEIR DIVIDENDS IN NOVEMBER COMPARED WITH 11 A YEAR AGO AND EIGHT FIRMS OMITTED THEIR DIVIDENDS DOWN FROM 14 A YEAR AGO MR KAUFMAN SAID THE RATIO OF DIVIDEND INCREASES TO DECREASES AND OMMISSIONS WAS THE BEST FOR ANY NOVEMBER SINCE 1983 MS COHEN THE GOLDMAN SACHS STRATEGIST ATTRIBUTED THE OUTPERFORMANCE OF THE NASDAQ MARKET TO SNAPBACK BUYING THAT MARKET HAS BEEN HARDEST HIT IN THE PAST TWO WEEKS AND SHOULD BE EXPECTED TO ATTRACT THE MOST BUYING ANALYSTS SAID TECHNOLOGY AND COMMUNICATIONS STOCKS LED NASDAQ MICROSOFT INCREASED 1 1/2 TO 81 1/2 INTEL JUMPED 1 1/4 TO 62 3/4 NEWBRIDGE NETWORKS CLIMBED 4 7/8 TO 53 7/8 NEXTEL COMMUNICATIONS RALLIED 1 1/2 TO 39 1/4 AND DSC COMMUNICATIONS ADDED 3 5/8 TO 57 3/4 THE MAJOR AUTO MAKERS WERE STRONG GENERAL MOTORS INCREASED 1/2 TO 53 1/4 FORD MOTOR JUMPED 1 7/8 TO 62 5/8 AND CHRYSLER RALLIED 1 1/4 TO 54 NAVISTAR INTERNATIONAL THOUGH SKIDDED 2 3/4 TO 22 3/8 INVESTORS WERE SAID TO BE WORRIED THAT THE CHICAGO TRUCK MAKER'S EARNINGS HAVE BEEN WEAKER THAN FORECAST IT IS EXPECTED TO RELEASE RESULTS TODAY FOR THE FOURTH QUARTER ENDED OCT 31 AMERICAN DEPOSITARY RECEIPTS OF GRUPO FINANCIERO SERFIN CLIMBED TO 25 3/4 ON THEIR FIRST DAY OF TRADING THE MEXICAN COMMERCIAL AND INVESTMENT BANKING CONCERN'S ISSUE OF 15 MILLION ADRS WAS OFFERED AT A PRICE OF 24375 EACH THE OFFER WAS INCREASED IN SIZE FROM AN ORGINALLY PLANNED 875 MILLION VENTRITEX PLUMMETED 5 3/4 TO 36 1/2 ON NASDAQ THE WALL STREET JOURNAL REPORTED THAT INSIDERS AT THE SUNNYVALE CALIF COMPANY HAVE BEEN SELLING SHARES AS THE FOOD AND DRUG ADMINISTRATION INVESTIGATES WHETHER THE COMPANY HAS IMPROPERLY PROMOTED ITS CARDIAC DEFIBRILLATOR 9312020002 931202 CREDIT MARKETS TREASURY PRICES RISE ON RELIEF THAT LATEST DATA ON ECONOMY WEREN'T STRONGER THAN EXPECTED BY THOMAS D LAURICELLA AND JOHN HUGHES SPECIAL TO THE WALL STREET JOURNAL NEW YORK RELIEF THAT FRESH ECONOMIC DATA DIDN'T COME IN STRONGER THAN EXPECTED HELPED PUSH PRICES OF TREASURY NOTES AND BONDS MODERATELY HIGHER YESTERDAY THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/2 POINT OR MORE THAN 500 FOR A BOND WITH A 1000 FACE VALUE TO 99 26/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 625 FROM 630 ON TUESDAY THE PRICES OF OTHER TREASURY MATURITIES ALSO ROSE MODESTLY WITH THE 10YEAR NOTE UP MORE THAN 3/8 POINT TO 99 26/32 TO YIELD 576 DOWN FROM 581 ON TUESDAY THE MARKET HELD UP RELATIVELY WELL SAID FRED LEINER A MARKET STRATEGIST AT CONTINENTAL BANK IN CHICAGO WE OPENED A LITTLE SOFTER BUT WE DIDN'T SEE ANY REAL FOLLOWTHROUGH FROM TUESDAY'S WEAKNESS AFTER TUESDAY'S MARKET DRUBBING WHICH CAME ON NEWS OF RISING CONSUMER CONFIDENCE AND INCREASED MANUFACTURING ACTIVITY IN THE CHICAGO AREA STRONGER ECONOMIC NEWS YESTERDAY FAILED TO DO ADDITIONAL DAMAGE THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX ROSE TO 557 FOR NOVEMBER FROM 538 IN OCTOBER A FIGURE ABOVE 50 REFLECTS AN EXPANDING MANUFACTURING ECONOMY THE MANUFACTURING SECTOR HAS BEEN SHOWING A LITTLE BIT BETTER STRENGTH OVER THE LAST COUPLE OF MONTHS SAID MR LEINER MEANWHILE STRONG DEMAND APPEARED TO GREET A 950 MILLION TWOPART OFFERING OF JUNK BONDS FROM WESTPOINT STEVENS INC WHICH HAS BEEN KNOWN AS VALLEY FASHIONS CORP JUST 14 MONTHS AGO THE COMPANY EMERGED FROM BANKRUPTCY PROTECTION BUT THAT DIDN'T SEEM SWAY INVESTORS WHOSE DEMAND HELPED PUSH THE OFFERINGS' YIELDS LOWER IN THE MUNICIPALBOND MARKET NEW JERSEY SOLD 13 BILLION OF TAX AND REVENUE ANTICIPATION NOTES IN THE STATE'S LARGEST COMPETITIVE BOND SALE EVER IN THE US TREASURY MARKET THE NEWS OF ECONOMIC STRENGTH WAS SHRUGGED OFF BY INVESTORS DESPITE WEEKS OF WEAKNESS IN THE BOND MARKET THE MONTHTOMONTH GAIN IN THE PURCHASING INDEX WAS GOOD NEWS FOR THE ECONOMY AND THUS BEARISH FOR THE BOND MARKET BOND INVESTORS USUALLY FEAR SIGNS OF ECONOMIC STRENGTH BECAUSE THAT CAN SIGNAL RISING INTEREST RATES AND INFLATION WHICH HURT FIXEDRATE INVESTMENTS HOWEVER THE LATEST REPORT WASN'T STRONGER THAN HAD BEEN ANTICIPATED IN THE MARKET SOME MARKET PARTICIPANTS HAD BEEN ANXIOUS ABOUT THE PURCHASING REPORT AFTER TUESDAY'S REPORT FROM THE CHICAGO PURCHASING MANAGEMENT ASSOCIATION SHOWED A BIG INCREASE IN ACTIVITY THERE WE GOT AN ASEXPECTED NUMBER AND WERE ABLE TO RALLY A LITTLE BIT SAID MR LEINER OF CONTINENTAL BANK ACCORDING TO MARKET WATCHERS THE BULK OF THE BUYING YESTERDAY WAS BY TRADERS CLOSING OUT SHORTS OR POSITIONS WHERE THEY HAD SOLD BORROWED SECURITIES IN HOPES OF BEING ABLE TO BUY THE ISSUES BACK AT LOWER LEVELS AND POCKET THE DIFFERENCE MANY OF THE TRADERS HAD SET SHORT POSITIONS IN ANTICIPATION OF A STRONG PURCHASING MANAGERS' REPORT FOR WEEKS INSTITUTIONAL INVESTORS HAVEN'T BEEN ACTIVE PLAYERS IN THE BOND MARKET AND YESTERDAY WAS NO DIFFERENT ACTIVITY WAS DOMINATED BY DEALERS AND SHORTTERM SPECULATIVE ACCOUNTS AS A RESULT PARTICIPANTS WERE LOATH TO READ TOO MUCH INTO THE PRICE MOVEMENT THE MARKET IS TRADING THIN AND IT'S HARD TO MAKE RHYME OR REASON OUT OF IT SAID DOUG SCHINDEWOLF A MONEYMARKET ECONOMIST AT SMITH BARNEY SHEARSON INC THE PEOPLE WHO ARE BUYING TREASURY SECURITIES ARE DOING SO ON A VERY SHORTTERM BASIS ATTENTION HAS NOW SHIFTED TO A GOVERNMENT REPORT ON NOVEMBER EMPLOYMENT WHICH IS SLATED TO BE RELEASED TOMORROW MOST ECONOMISTS BELIEVE THE FIGURES WILL REFLECT CONTINUED MODERATE IMPROVEMENT IN THE LABOR MARKET WITH FORECASTS CENTERING ON AN INCREASE IN NONFARM PAYROLL EMPLOYMENT OF 168000 THAT WOULD FOLLOW A 177000 RISE IN PAYROLLS DURING OCTOBER THE UNEMPLOYMENT RATE MEANWHILE IS SEEN EDGING DOWN TO 67 FROM 68 THE JOBS DATA COULD BE CRITICAL TO INVESTOR SENTIMENT THE MARKET IS TRYING TO FIGURE OUT WHETHER THE BETTER ECONOMIC GROWTH IS GOING TO CONTINUE INTO THE FIRST QUARTER OF NEXT YEAR SAID MR LEINER A LOT OF PEOPLE ARE SAYING THAT WE MAY VERY WELL SEE 4 GROWTH IN THE FOURTH QUARTER AND THAT IS HIGHER THAN THE BOND MARKET WOULD WANT TO HAVE TO DEAL WITH JUNK AND WASTE CAPTURED THE ATTENTION OF THE CORPORATE BOND MARKET YESTERDAY A 950 MILLION TWOPART JUNKBOND OFFERING FROM TEXTILE COMPANY WESTPOINT STEVENS WAS THE LARGEST DEAL OF THE DAY WASTEMANAGEMENT CONCERN WMX TECHNOLOGIES INC SOLD A 500 MILLION ISSUE OF 10YEAR NOTES INVESTOR DEMAND FOR THE WESTPOINT OFFERING APPEARED STRONG DESPITE REPORTS OF HOSTILITIES BETWEEN INVESTORS WHO CONTROL THE COMPANY'S BOARD THE WESTPOINT STEVENS OFFERING WAS INCREASED BY 350 MILLION AND THE EXPECTED YIELDS ON THE DEBT WERE LOWERED A SIGN OF STRONG DEMAND THE COMPANY SOLD 400 MILLION OF EIGHTYEAR SENIOR NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS THE NOTES WERE PRICED AT PAR TO YIELD 875 DOWN FROM AN EXPECTED YIELD OF AS MUCH AS 9125 THE SENIOR NOTES ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP THE COMPANY IS USING THE PROCEEDS OF THE DEAL TO PAY DOWN BANK DEBT SYNDICATE OFFICIALS SAID DONALDSON LUFKIN & JENRETTE SECURITIES CORP WAS THE LEAD UNDERWRITER FOR THE DEAL MEANWHILE INVESTMENTGRADE BONDS ROSE AS MUCH AS 1/2 POINT YESTERDAY IN SECONDARY TRADING WHILE JUNKBOND PRICES WERE LITTLE CHANGED NEW JERSEY STOLE THE SHOW IN THE MUNICIPAL BOND MARKET YESTERDAY WITH ITS INNOVATIVE AUCTION OF 13 BILLION OF TAX AND REVENUE ANTICIPATION NOTES THE NOTE AUCTION WAS THE LARGEST COMPETITIVE MUNICIPALDEBT SALE EVER CONDUCTED IN THE STATE THE TRANS ARE ALSO THE FIRST SUCH NOTES SOLD COMPETITIVELY BY NEW JERSEY NEW JERSEY USED AN UNUSUAL APPROACH TO SELL THE TRANS THE OVERALL AMOUNT WAS SET AT 13 BILLION BUT FIRMS THAT BID FOR THE SECURITIES HAD A CHOICE OF THREE TYPES OF NOTES SERIES FISCAL 1994A FIXEDRATE NOTES FISCAL 1994B VARIABLERATE DEMAND NOTES AND FISCAL 1994C INDEXED NOTES BY GIVING MUNI UNDERWRITERS A SELECTION CONSISTING OF FIXEDRATE NOTES AND TWO TYPES OF DERIVATIVES NEW JERSEY ALLOWED THE BIDDERS TO DETERMINE THE ACTUAL MAKEUP OF THE OFFERING ALL OF THE WINNING BIDS WERE FOR THE FIXEDRATE NOTES THUS THE OFFERING COMPRISES 13 BILLION OF SERIES FISCAL 1994A FIXEDRATE NOTES ROBERT LURIE NEW JERSEY'S DIRECTOR OF PUBLIC FINANCE TOLD DOW JONES CAPITAL MARKETS REPORT WE'RE THRILLED WITH THE WAY THIS WORKED OUT THE AVERAGE OF THE WINNING BIDS IS A NET INTEREST COST OF 22869 FULFILLING NEW JERSEY'S HOPES FOR A NET INTEREST COST BELOW 240 MR LURIE SAID IN THE SECONDARY MARKET PRICES FINISHED MIXED THE WASHINGTON DC METROPOLITAN AREA TRANSPORTATION AUTHORITY'S 525 BONDS OF 2014 CLOSED UNCHANGED AT 97 3/4 TO YIELD 539 FOR THE SECOND CONSECUTIVE SESSION A BIGTICKET ASSETBACKED DEAL HIT THE MARKET AND BUYERS SEEMED EVERY BIT AS EAGER AS ON TUESDAY UNDERWRITERS LED BY JP MORGAN SECURITIES INC PRICED A 11 BILLION OFFERING OF SIGNET BANK/VIRGINIA NOTES THROUGH A SPECIALPURPOSE VEHICLE IN A TWOPART DEAL BACKED BY CREDITCARD RECEIVABLES THE ISSUER SIGNET BANK IS A UNIT OF SIGNET BANKING CORP THE FIRST CLASS SERIES 19933 CONSISTED OF 360 MILLION OF FIXEDRATE NOTES WITH A 485 COUPON PRICED AT 99 59/64 TO YIELD 035 PERCENTAGE POINT ABOVE THE THREEYEAR TREASURY NOTE THE SECOND CLASS SERIES 19934 WAS MADE UP OF 609 MILLION OF FIVEYEAR FLOATINGRATE NOTES PRICED TO YIELD 025 PERCENTAGE POINT ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE AT 99 61/64 THERE IS A 12 YIELD CAP ON THE NOTES A JP MORGAN SYNDICATE OFFICIAL SAID THE WHOLE DEAL WENT OVER VERY WELL AND WAS COMPLETELY SOLD SINCE SIGNET'S CREDITCARD PORTFOLIO ISN'T AS WELL REGARDED AS THOSE OF SOME BANKS MOST INVESTORS WERE LOOKING FOR THE YIELD PREMIUM TO BE BETTER ON THE FLOATINGRATE NOTES BUT THE YIELD ON THE SIGNET FLOATING NOTES WAS THE SAME AS THAT OFFERED ON 1 BILLION OF FLOATINGRATE NOTES OFFERED BY MBNA CORP'S MBNA AMERICA BANK UNIT ON TUESDAY MBNA HAS ONE OF THE MOST HIGHLY REGARDED CREDITCARD PORTFOLIOS PRICES OF MORTGAGEBACKED SECURITIES MEANWHILE ENDED HIGHER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 COUPONS FOR DECEMBER DELIVERY FINISHED 9/32 HIGHER AT 98 25/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES WERE BOTH UP 6/32 AT 98 31/32 AND 98 25/32 RESPECTIVELY 9312020001 931202 WHO'S NEWS ADVEST GROUP INC ADVEST GROUP INC HARTFORD CONN ALLEN WEINTRAUB CHIEF EXECUTIVE AND PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS DIVERSIFIED FINANCIALSERVICES CONCERN IN HIS NEW POST MR WEINTRAUB 58 YEARS OLD SUCCEEDS ANTHONY A LACROIX 64 WHO WAS NAMED VICE CHAIRMAN 9312020141 931129 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN CCHICAGO TTORONTO 9312010205 931201 TECHNOLOGY ONCOR INC'S DNAPROBE LICENSE GAITHERSBURG MD ONCOR INC SAID IT ACQUIRED AN EXCLUSIVE LICENSE FROM THE UNIVERSITY OF UTAH FOR DNA PROBES TO THE ELASTIN GENE MUTATIONS OF THE GENE ARE ASSOCIATED WITH TWO VASCULAR DISORDERS ONCOR MAKES SYSTEMS FOR MONITORING AND MANAGING TREATMENT OF GENETIC DISEASES 9312010204 931201 TECHNOLOGY MATRIX PHARMACEUTICAL INC MENLO PARK CALIF MATRIX PHARMACEUTICAL INC SAID IT FORMED A WHOLLY OWNED SUBSIDIARY MATRIX PHARMACEUTICAL LTD IN ALTON HAMPSHIRE ENGLAND THE COMPANY DEVELOPS NEW DRUG DELIVERY SYSTEMS TO INCREASE EFFECTIVENESS AND REDUCE TOXICITY OF ESTABLISHED DRUGS 9312010203 931201 INTERNATIONAL JOBLESS RATE RISES IN FRANCE PARIS FRANCE'S ECONOMIC SLOWDOWN CONTINUED TO TAKE ITS TOLL ON THE LABOR FORCE IN OCTOBER AS 40300 MORE WORKERS JOINED THE UNEMPLOYMENT ROLLS PUSHING THE JOBLESS RATE TO 12 FROM 118 IN SEPTEMBER A TOTAL OF 33 MILLION FRENCH CITIZENS WERE REGISTERED WITH THE GOVERNMENT EMPLOYMENT AGENCY ACCORDING TO SEASONALLY ADJUSTED FIGURES 9312010201 931201 INTERNATIONAL JAPAN SHAKEN BY PLUNGING STOCKS MULLS FURTHER ECONOMIC MEASURES AS COALITION SHIFTS FOCUS TO STIMULUS PLAN MANY DOUBT EFFECTIVE RESULTS BY JACOB M SCHLESINGER AND JATHON SAPSFORD STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO SHAKEN BY A CRASHING STOCK MARKET AND SOME OF THE WORST ECONOMIC NEWS IN YEARS THE JAPANESE GOVERNMENT YESTERDAY RAISED THE PROSPECT OF NEW EMERGENCY MEASURES TO COMBAT THE ECONOMIC DOWNTURN THE BARRAGE OF POSITIVE PUBLIC SIGNALS BY PRIME MINISTER MORIHIRO HOSOKAWA AND OTHER OFFICIALS TEMPORARILY REVERSED TOKYO'S SLUMPING STOCK PRICES BUT IT'S TOO SOON TO TELL IF THE GOVERNMENT IS OFFERING ANYTHING MORE THAN VERBAL INTERVENTION TO CALM JITTERY INVESTORS AND CITIZENS WORRIED ABOUT PAY CUTS AND LOSING JOBS THE GOVERNMENT TROTTED OUT SEVERAL CABINET MINISTERS AT MIDDAY TO PROMISE CONSIDERING NEW STIMULUS POLICIES SUCH AS EASING REALESTATE SALE REGULATIONS AND GIVING NEW TAX BREAKS TO SLUMPING BANKS THE MARKET IS A TOPIC OF GREAT CONCERN MR HOSOKAWA TOLD PARLIAMENT IN RESPONSE THE NIKKEI 225STOCK INDEX ROSE 32783 POINTS YESTERDAY TO CLOSE AT 1640654 INTERRUPTING A 1300POINT SLIDE OVER THE PAST WEEK MANY TRADERS AND ECONOMISTS HOWEVER WERE UNIMPRESSED WITH THE PRONOUNCEMENTS WHICH THEY BRANDED A REPACKAGING OF OLD PROPOSALS IF THIS STUFF WERE GOING TO TURN THINGS AROUND IT WOULD HAVE DONE SO MONTHS AGO SAID PAUL MIGLIORATO A SENIOR SALESMAN AT JARDINE FLEMING SECURITIES INDEED THE ECONOMY HAS RESISTED A STRING OF PREVIOUS STIMULUS PACKAGES THE MOST RECENT OF WHICH WAS UNVEILED IN SEPTEMBER THE GOVERNMENT ASSURANCES ALSO CAME AS TOKYO ANNOUNCED THAT UNEMPLOYMENT HAS RISEN TO ITS HIGHEST LEVEL IN SIX YEARS WHILE INDUSTRIAL OUTPUT HAS FALLEN BY ITS SHARPEST RATE ON RECORD UNTIL THIS WEEK THE POPULAR MR HOSOKAWA AND HIS COLLEAGUES LARGELY OVERLOOKED THE ECONOMY AND THE TOKYO MARKET'S RECENT SLIDE AS THEY MADE THEIR TOP PRIORITY CHANGING JAPAN'S SCANDALRIDDEN POLITICAL SYSTEM NOW THEY SEEM TO BE PLAYING CATCHUP AS THEY SCRAMBLE TO FIGHT THE NATION'S WORSENING RECESSION MONDAY'S NIKKEI COLLAPSE THE MARKET FELL 39 TO ITS LOWEST LEVELS FOR THE YEAR SEEMS TO BE A TURNING POINT THAT MAY JEOPARDIZE MR HOSOKAWA'S PUBLIC BACKING MOREOVER BY PUTTING THE ECONOMY IN THE SPOTLIGHT IT COMPLICATES THE PRIME MINISTER'S GOAL OF ACHIEVING POLITICAL REFORM THIS YEAR THE NIHON KEIZAI SHIMBUN JAPAN'S LEADING FINANCIAL DAILY SHARPLY CRITICIZED MR HOSOKAWA IN AN UNUSUAL FRONTPAGE EDITORIAL YESTERDAY THE FALLING MARKET REFLECTS THE PEOPLE'S DISTRUST IN THE IDLE HOSOKAWA CABINET THE NEWSPAPER DECLARED WE HAVE NO TIME TO DELAY ECONOMIC MANAGEMENT MR HOSOKAWA'S SEVENPARTY COALITION CAME TO POWER IN AUGUST PROMISING TO CHANGE THE POLITICAL SYSTEM WITHOUT HAMMERING OUT AN ECONOMIC POLICY WHEN THE LOWER HOUSE OF PARLIAMENT PASSED THE REFORM LEGISLATION TWO WEEKS AGO IT LOOKED AS IF MR HOSOKAWA'S GOAL WAS WITHIN GRASP BUT THE OPPOSITION HAS STALLED CONSIDERATION OF THE BILLS IN THE UPPER HOUSE USING THE NIKKEI'S FALL TO ARGUE THAT A SPECIAL SPENDING PACKAGE TO HELP THE ECONOMY SHOULD BE A HIGHER PRIORITY MR HOSOKAWA ONCE SAID HE WOULD RESIGN IF BOTH HOUSES DIDN'T APPROVE POLITICAL REFORM BY THE END OF DECEMBER IT NOW LOOKS AS IF THAT COULD TAKE UNTIL THE MIDDLE OF JANUARY KAZUO AICHI A SENIOR COALITION POLITICIAN SAID YESTERDAY MR AICHI BELIEVES THE TIMETABLE WOULD BE CLOSE ENOUGH FOR MR HOSOKAWA TO STAY IN OFFICE BUT THE DELAYS IN THE POLITICAL REFORM PACKAGE WILL MAKE THE NEXT FEW WEEKS HARROWING FOR MR HOSOKAWA AND FOR JAPAN'S TRADING PARTNERS THE US IS COUNTING ON JAPAN TO MAKE A PUBLIC PROMISE BY THE MIDDLE OF THIS MONTH TO END ITS BAN ON RICE IMPORTS SUCH A PLEDGE IS CONSIDERED ESSENTIAL TO CONCLUDE THE MULTILATERAL URUGUAY ROUND OF TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR HOSOKAWA'S COALITION IS DIVIDED ON THAT ISSUE AND HE HAD ORIGINALLY HOPED TO HAVE COMPLETED REFORM BEFORE HAVING TO ANNOUNCE THE DECISION ON RICE IMPORTS IT ISN'T CLEAR HOW THE REFORM DELAYS WILL AFFECT THE RICEMARKET OPENING OR VICE VERSA MR AICHI WHO HEADS THE COALITION'S PARLIAMENTARY POLICY COMMITTEE CONCEDED THAT THE POLITICAL REALITY OF THE COALITION HAS MADE IT FALL SOMEWHAT BEHIND ON ECONOMIC POLICY ANY OF THE APPROACHES WE WOULD USE TO IMPROVE THE ECONOMY ARE VERY SENSITIVE EMOTIONAL ISSUES THAT COULD TEAR APART THE COALITION HE SAID COALITION MEMBERS FOR EXAMPLE DISAGREE ABOUT THE WAY TO HANDLE AN INCOMETAX CUT MR AICHI SAID THE HOSOKAWA CABINET WHICH HAS VERY LITTLE PRIOR MINISTERIAL EXPERIENCE ISN'T USED TO DEALING WITH THE BUREAUCRATS THEY'RE NOT HANDLING THEM AS EFFECTIVELY AS PERHAPS THEY COULD BUT GOVERNMENT SUPPORTERS ALSO SAY THERE IS LITTLE THEY CAN DO AT LEAST IN THE SHORT TERM TO HELP THE ECONOMY TRADE MINISTER HIROSHI KUMAGAI NOTED THAT THE RECESSION HAS PERSISTED DESPITE 30 TRILLION YEN 2747 BILLION IN PUBLIC SPENDING STILL HE AND OTHER CABINET MEMBERS FEEL THE NEED TO PROMISE SOMETHING TO BOOST CONFIDENCE THEY ARE TALKING UP A STIMULATIVE SUPPLEMENTARY BUDGET APPROVED BY THE CABINET YESTERDAY AND SUBMITTED TO PARLIAMENT THERE IS ALSO MORE TALK BUT ONLY TALK ABOUT TAX CUTS CHEAP LOANS TO SMALL BUSINESSES AND OTHER MEASURES IN THE COMING DAYS THE MARKET WILL BE FOCUSED AS MUCH ON JAPAN'S BLEAK ECONOMIC NEWS AS THE POLITICAL NEWS THE GOVERNMENT SAID INDUSTRIAL OUTPUT IN OCTOBER FELL 51 FROM SEPTEMBER THE BIGGEST MONTHONMONTH DECLINE SINCE SUCH RECORDS BEGAN MORE THAN 40 YEARS AGO WORSE SHIPMENTS FELL BY A STEEPER 56 IN OCTOBER MEANING OUTPUT IS LIKELY TO FALL EVEN FURTHER THE GOVERNMENT MEANWHILE SAID UNEMPLOYMENT ROSE TO 27 IN OCTOBER UP 01 PERCENTAGE POINT FROM THE PREVIOUS MONTH A SEPARATE TRADE MINISTRY SURVEY SAID THAT THREE OUT OF FOUR JAPANESE COMPANIES ARE SHIFTING PRODUCTION OVERSEAS BECAUSE OF THE RELATIVELY HIGH COST OF LABOR IN JAPAN AND THAT NEARLY AS MANY EMPLOYERS THINK THEY HAVE TOO MANY WORKERS AMID SPREADING FEARS THAT COMPANIES WILL BEGIN MASSIVE LAYOFFS NEXT YEAR THE LABOR MINISTRY SAID IT WILL DEVISE A PACKAGE OF MEASURES BY DEC 10 TO PROMOTE EMPLOYMENT AND BOOST JOB SECURITY ALL THIS POINTS TO A WEAK ECONOMY FOR MONTHS MAYBE YEARS THE BANK OF TOKYO A MAJOR JAPANESE LENDER SAID GROSS DOMESTIC PRODUCT WILL PROBABLY CONTRACT BY 07 FOR THE YEAR ENDING IN MARCH AND WILL ONLY RECOVER GROWTH OF 04 THE FOLLOWING YEAR 9312010200 931201 VORNADO REALTY TRUST'S CHARGE SADDLE BROOK NJ VORNADO REALTY TRUST SAID IT WILL HAVE A 3 MILLION EXTRAORDINARY CHARGE IN THE FOURTH QUARTER RELATED TO PREPAYMENT OF ABOUT 314 MILLION OF DEBT UNDER A MORTGAGE LOAN DUE IN JANUARY 1994 9312010199 931201 PHONE FIRMS' RUSH TO NEW INDUSTRIES WORRIES MOODY'S BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MAJOR TELEPHONE COMPANIES WHICH HAVE LONG ENJOYED THE ABILITY TO BORROW VAST SUMS OF MONEY AT LOW COST NOW RISK LOWER DEBT RATINGS AS THEY BEGIN TO MERGE AND SPLURGE ON THEIR WAY DOWN THE INFORMATION SUPERHIGHWAY MOODY'S INVESTORS SERVICE INC SAID MANY OF THEIR EMERGING PARTNERS AS WELL MAY FACE REDUCED DEBT RATINGS AS THEY SEEK TO RAISE THE BILLIONS OF DOLLARS TO BUILD THE NEW TELECOMMUNICATIONS NETWORKS ON THE DRAWING BOARDS THE ANALYSIS SAID THE RUSH BY REGIONAL PHONE COMPANIES CABLETELEVISION COMPANIES WIRELESSCOMMUNICATIONS PROVIDERS AND ENTERTAINMENT GIANTS TO LAUNCH A SLEW OF VOICE DATA VIDEO AND INFORMATION SERVICES IS RAISING SERIOUS QUESTIONS ABOUT THE IMPACT ON CREDIT QUALITY MOODY'S SAID THE VENTURES WILL REQUIRE VAST INVESTMENTS MUCH OF IT FUNDED BY DEBT AND THEY WILL ENCOUNTER STIFF COMPETITION THE RATINGS PRESSURE COULD BE PARTICULARLY INTENSE FOR LOCAL TELEPHONE COMPANIES WHICH ENJOY SOME OF THE HIGHEST RATINGS FOR ANY INDUSTRY GROUP MOODY'S NOTED LOWER RATINGS IN TURN COULD MAKE RAISING CAPITAL MORE EXPENSIVE AT A TIME WHEN BORROWING DEMANDS ARE SHARPLY INCREASING MOODY'S SAID ITS AVERAGE RATING FOR TELEPHONE OPERATING COMPANIES IS DOUBLEA2 ALLIANCES BETWEEN LARGE CABLE AND TELEPHONE COMPANIES ARE EXPECTED TO CONTINUE AND COULD POTENTIALLY RESULT IN RATING DOWNGRADES OVER THE NEXT SEVERAL YEARS FOR TELEPHONE COMPANIES MOODY'S SAID THE RATINGS CONCERN FOR INSTANCE IS STILL REVIEWING FOR POSSIBLE DOWNGRADE THE DEBT OF BELL ATLANTIC CORP FOLLOWING ITS PROPOSED 33 BILLION ACQUISITION OF TCI COMMUNICATIONS CORP AND THE DEBT OF NYNEX CORP FOR ITS 12 BILLION INVESTMENT IN VIACOM INC ON THE OTHER HAND SOME CABLE AND OTHER VIDEO PROGRAMMING COMPANIES COULD SEE A BOOST IN THEIR RATINGS THROUGH SIMILAR TRANSACTIONS WHEN U S WEST INC SAID IT PLANNED TO INVEST 25 BILLION IN TIME WARNER ENTERTAINMENT CO MOODY'S RAISED ITS RATINGS ON THE TIME WARNER INC UNIT'S LONGTERM DEBT TO INVESTMENTGRADE LEVEL BECAUSE THE UNIT USED THE CASH FROM U S WEST TO SHORE UP ITS BALANCE SHEET NOTES STEPHEN J GUTKOWSKI ONE OF THE AUTHORS OF THE MOODY'S REPORT U S WEST'S DEBT RATINGS HOWEVER WERE CONFIRMED THE MAJOR REGIONAL PHONE COMPANIES HAVE WATCHED THEIR LOCAL TELEPHONE REVENUES STAGNATE OVER THE YEARS NOW A HOST OF NEW COMPETITORS INCLUDING SIBLING BELL COMPANIES ARE READYING THEMSELVES TO RAID RIVAL PHONE TERRITORIES AND THAT'S NOT ALL COMPETITION IS ALSO EXPECTED TO BE FIERCE FROM WIRELESS GIANTS LIKE MCCAW CELLULAR COMMUNICATIONS CORP FIBEROPTIC PHONE PROVIDERS CABLE OPERATORS MOBILE RADIO DISPATCH COMPANIES AND EMERGING PERSONAL COMMUNICATIONS SYSTEMS THE CRUSH OF PRESSURES AND THE CLINTON ADMINISTRATION'S ENTHUSIASTIC SUPPORT FOR THE NEWFANGLED SERVICES WILL ACCELERATE THE INVESTMENT OF CAPITAL INTO INDUSTRIES WITH HIGHER RISK PROFILES AND THE INCREMENTAL DEBT FINANCING COULD PROVE DIFFICULT TO ABSORB AT CURRENT RATING LEVELS MOODY'S SAID MR GUTKOWSKI ALSO NOTED THAT PHONE COMPANIES' POTENTIAL CABLE PARTNERS CURRENTLY HAVE SPECULATIVEGRADE DEBT RATINGS WHILE THERE IS TREMENDOUS VOLATILITY IN THE VIDEO AND ENTERTAINMENT INDUSTRY SOMETHING THAT DOESN'T BODE WELL FOR PHONE COMPANIES' FUTURE CREDIT RATINGS 9312010198 931201 TEXAS JOURNAL FLYING TO A SMALL TOWN GOOD LUCK AMONG THE PROBLEMS INFREQUENT SERVICE OR NO SERVICE AT ALL BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL MOST OF TEXAS LET OUT A SIGH OF RELIEF WHEN THE STRIKE AT AMERICAN AIRLINES ENDED BUT NOT PARIS OR LAKE JACKSON OR DEL RIO THAT'S BECAUSE IN THESE PLACES AS IN MUCH OF RURAL AND SMALLTOWN TEXAS GETTING FROM POINT A TO POINT B IS ALWAYS A STRUGGLE A CONSTANT TEST OF WILLS AGAINST SCANTY SCHEDULES IMPOSSIBLE CONNECTIONS OR NO CONNECTIONS AT ALL JUST YESTERDAY PARIS BECAME THE SIXTH TEXAS TOWN TO LOSE AIR SERVICE COMPLETELY SINCE 1985 AS LONE STAR AIRLINES CANCELED ITS THREE DAILY FLIGHTS TO THE TOWN OF 25000 PEOPLE NOW THE BAD NEWS ALL THE SIGNS INDICATE THAT THINGS WILL ONLY GET WORSE CONSIDER AMERICAN EAGLE THE COMMUTERAIRLINE AFFILIATE OF AMERICAN AIRLINES PLANS TO GET RID OF MANY OF ITS SMALLEST PLANES THAT PUTS TOWNS SERVED BY THOSE 19SEAT AIRCRAFT SUCH AS BRYAN/COLLEGE STATION AND SAN ANGELO ON THE AIRSERVICE ENDANGERED LIST MORE THAN A DOZEN INDEPENDENT COMMUTER AIRLINES IN THE STATE HAVE GONE OUT OF BUSINESS OR HAVE BEEN TAKEN OVER BY LARGER AIRLINES DURING THE PAST DECADE NOW THE TWO THAT REMAIN CONQUEST AIRLINES CORP AND LONE STAR ARE EITHER IN THE RED OR SURVIVING ON FEDERAL SUBSIDIES THAT HAVE BEEN TARGETED FOR CUTBACKS SOUTHWEST AIRLINES CO DOESN'T PLAN TO ADD ANY MORE TEXAS CITIES TO ITS FLIGHT SCHEDULE PREFERRING TO FOCUS EXPANSION ON OUTOFSTATE MARKETS DIMINISHED SERVICE ISN'T JUST AN ISSUE FOR THE SMALLEST TOWNS IN AUGUST FOR INSTANCE AMERICAN ELIMINATED ITS JET SERVICE TO MIDLAND/ODESSA AND LUBBOCK INSTEAD AMERICAN EAGLE NOW FLIES 34SEAT PROPELLER PLANES TO THESE CITIES SOUTHWEST STILL SERVES THE CITIES WITH JETS BUT IT HASN'T EXPANDED ITS SCHEDULE TO MAKE UP FOR THE LOST AMERICAN FLIGHTS ALTHOUGH ACCESS TO AIR SERVICE IS AN ISSUE FOR SMALL TOWNS EVERYWHERE IT'S PARTICULARLY CRITICAL IN TEXAS A STATE AS LARGE AS NEW ENGLAND NEW YORK PENNSYLVANIA OHIO AND ILLINOIS COMBINED I REALLY THINK THE CANCELED SERVICE IS GOING TO HURT SAYS PARIS MAYOR GEORGE FISHER IF WE WANT TO BRING SOMEONE IN TO LOOK AT A LOCAL BUSINESS WE DON'T HAVE AIR SERVICE I GUESS THEY'LL HAVE TO RENT A CAR OR DRIVE AND THAT'S BAD MIKE YOUNG PRESIDENT OF CHUY'SCOMIDA DELUXE INC IN AUSTIN IS A CASE IN POINT MR YOUNG SAYS HE WILL ONLY LOCATE HIS RESTAURANTS IN CITIES SERVED BY SOUTHWEST AIRLINES IF WE WERE LOOKING AT A CITY THAT WAS A THREEHOUR DRIVE FROM AUSTIN AND DIDN'T HAVE REGULAR AIR SERVICE WE WOULDN'T CONSIDER IT HE SAYS IT'S ONE OF THE PRIMARY CONCERNS IN OUR LOCATION DECISIONS LITTLE WONDER THEN THAT SOME COMMUNITIES HAVE RESORTED TO CASH INCENTIVES TO WOO COMMERCIAL AIRLINES BEFORE CONQUEST AIRLINES BEGAN SERVICE TO SUGARLAND NEAR HOUSTON IN NOVEMBER THE CITY PROMISED 515000 IN MARKETING FUNDS THREE MONTHS OF FREE TERMINAL SPACE AND NO LANDING FEES FOR SIX MONTHS SIMILARLY THREE YEARS AGO NACOGDOCHES RAISED 45000 TO CONVINCE CONQUEST TO PROVIDE SERVICE TO AUSTIN AND USED THE FUNDS TO SUBSIDIZE ANY FLIGHTS WITH LESS THAN NINE PASSENGERS BUT AFTER 18 MONTHS CONQUEST MOVED OUT FOR LACK OF BUSINESS NOW AFTER A LOBBYING EFFORT BY NACOGDOCHES AND LUFKIN WHICH HAVE A COMBINED POPULATION OF ABOUT 110000 LONE STAR AIRLINES IS PROMISING SERVICE FROM NACOGDOCHES TO D/FW AIRPORT BEGINNING IN MARCH IT'S A TREMENDOUS ISSUE WHEN YOU LIVE IN RURAL TEXAS SAYS NACOGDOCHES MAYOR JUDY MCDONALD IN ORDER TO FLY I'VE GOT TO DRIVE A MINIMUM OF TWO HOURS TO REACH AN AIRPORT THAT WILL FLY ME ANYWHERE NO ONE IN TEXAS IS MORE EXCITED ABOUT THE NACOGDOCHES/LUFKIN AIR SERVICE THAN CHICAGO EXECUTIVE HOWARD KERR MR KERR VISITS HIS COMPANY'S NACOGDOCHES POULTRY PLANT GREEN ACRE FOODS INC TWICE A MONTH BUT TO GET THERE HE LEAVES CHICAGO AT 8 AM FOR D/FW AIRPORT THEN CATCHES A FLIGHT TO SHREVEPORT FROM THERE HE HOPS IN A CAR AND DRIVES TWO HOURS TO THE POULTRY PLANT ARRIVING WELL AFTER 3 PM THE MOST DIFFICULT TIMECONSUMING PERSONAL LOGISTICS PROBLEM I HAVE IN MANAGING THIS COMPANY IS TO GET FROM THE CHICAGO AREA TO NACOGDOCHES SAYS MR KERR IF YOU DON'T HAVE A PRIVATE PLANE IT'S VERY DIFFICULT TO GET THERE AND IT TAKES JUST AS MUCH TIME TO LEAVE STILL CONVINCING THE AIRLINE TO SHOW UP IS HALF THE BATTLE YOU ALSO HAVE TO KEEP IT THERE AMERICAN EAGLE FOR INSTANCE NOW SERVES 15 TEXAS CITIES BUT THE AIRLINE IS BUYING 20 PLANES THAT SEAT 64 PEOPLE APIECE WHILE GETTING RID OF ABOUT THE SAME NUMBER OF ITS 19SEAT AIRCRAFT AIRLINEINDUSTRY EXPERTS THINK THAT OTHER AIRLINES WILL SELL OFF THEIR SMALLEST PLANES AND SUBSEQUENTLY ABANDON SOME OF THE SMALLER MARKETS THEY'RE NOT GOING TO BE INTERESTED IN THOSE KINDS OF MARKETS PREDICTS MICHAEL J BOYD PRESIDENT OF AVIATION SYSTEMS RESEARCH CORP A GOLDEN COLO RESEARCH AND CONSULTING FIRM FOR ITS PART AMERICAN EAGLE ISN'T MAKING ANY PROMISES THERE'S NO WAY WE CAN CARVE ANY OF OUR SCHEDULES IN STONE SAYS A SPOKESMAN WE BELIEVE IN ALL THE MARKETS WE'RE SERVING OUR INTENT IS TO STAY FOREVER BUT CIRCUMSTANCES CHANGE MARKETS CHANGE AND THE INDUSTRY CHANGES SO IS THERE ANY HOPE THE BEST CHANCE FOR IMPROVED AIR SERVICE MOST PEOPLE AGREE RESTS WITH THE ENTREPRENEURS WHO WILL LOOK TO GO WHERE NOBODY ELSE WANTS TO FOR THE MOMENT THAT MEANS LONE STAR AND CONQUEST WE'RE POSITIONING OURSELVES TO TRY TO FILL THE VOID SAYS PHIL TRENARY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LONE STAR AIRLINES WHICH IS BASED IN FORT WORTH FILLING THE VOID HOWEVER HASN'T PROVED EASY SINCE ABANDONING PARIS LONE STAR PROVIDES SERVICE FROM D/FW AIRPORT TO ONLY TWO OTHER TEXAS CITIES BROWNWOOD AND ALPINE BUT THE BROWNWOOD SERVICE IS ONLY ECONOMICALLY VIABLE BECAUSE THE AIRLINE RECEIVES A 401000 FEDERAL SUBSIDY THE SUBSIDY PART OF A PROGRAM TO PROVIDE AIR SERVICE TO COMMUNITIES THAT NEED IT FOR ECONOMIC REASONS HAS BEEN TARGETED FOR CUTBACKS BY VICE PRESIDENT AL GORE IN FACT IT WAS THE LOSS OF A 377000 SUBSIDY FOR THE PARIS ROUTE THAT PROMPTED LONE STAR TO ABANDON THAT MARKET WITHOUT THE SUBSIDY LONE STAR OFFICIALS SAY THE AIRLINE CAN'T AFFORD TO FLY THE ROUTE THEY HAVE APPEALED THE GOVERNMENT'S DECISION THE FEDS THEY SAY HAVE UNDERESTIMATED THE NUMBER OF PASSENGERS THEREBY OVERSTATING THE PERPASSENGER SUBSIDY THEY ALSO ARGUE THAT THE GOVERNMENT HAS UNDERESTIMATED THE IMPORTANCE OF SMALL COMMUNITIES TO THE STATE'S ECONOMY BY MAINTAINING SERVICE TO SMALL COMMUNITIES IN TEXAS MR TRENARY SAYS IT'S GOOD FOR THE ECONOMIC BASE OF THE WHOLE STATE THEN THERE'S CONQUEST AIRLINES WHICH STARTED FLYING IN 1988 AND NOW SERVES 10 TEXAS CITIES THE AUSTINBASED AIRLINE PROMISES MORE NEW SERVICE ANNOUNCEMENTS THIS MONTH THE COMPANY ALSO IS PLANNING SERVICE FROM LAREDO SAN ANTONIO AND MCALLEN TO MONTERREY MEXICO BUT CONQUEST'S FINANCIAL HEALTH DOESN'T INSPIRE CONFIDENCE THE COMPANY HAS REPORTED NET LOSSES IN FOUR OF THE PAST FIVE YEARS THE ONE PROFITABLE YEAR RESULTED FROM A LAWSUIT SETTLEMENT DURING THE LATEST FISCAL QUARTER ENDED AUG 31 CONQUEST REPORTED AN OPERATING LOSS OF 16 MILLION OR 11 CENTS PER SHARE ON SALES OF 28 MILLION CONQUEST CHAIRMAN VICTOR RIVAS SAYS THOSE NUMBERS WILL IMPROVE WHEN THE AIRLINE STOPS SPENDING MONEY ON EXPANSION HE INSISTS THAT CONQUEST WILL SUCCEED WHERE OTHERS HAVE FAILED BECAUSE HIS COMPANY DOESN'T FEED INTO A HUB WHERE PASSENGERS HAVE TO TRANSFER TO A CONNECTING FLIGHT INSTEAD CONQUEST FOCUSES ON POINTTOPOINT SERVICE SUCH AS CORPUS CHRISTI TO AUSTIN ALTHOUGH OTHER CARRIERS SERVE THE TWO CITIES CONQUEST IS THE ONLY ONE TO PROVIDE DIRECT NONSTOP SERVICE STILL BECAUSE OF THE TIME AND INVESTMENT IT TAKES TO START A NEW ROUTE EVEN MR RIVAS CONCEDES LIFE FOR THE RURAL TEXAS COMMUTER COULD GET WORSE BEFORE IT GETS BETTER AND IT MAY NOT GET BETTER AT ALL WE'VE GOT PEOPLE CALLING US FROM ALL THESE CITIES WANTING SERVICE SAYS MR RIVAS WHO NOTES THAT FOUR TEXAS TOWNS CURRENTLY ARE OFFERING THE AIRLINE FINANCIAL INCENTIVES TO BEGIN SERVICE BUT WE CAN ONLY EXPAND AT A CERTAIN RATE AND WITH WHAT'S HAPPENING IN THE INDUSTRY IT'S ONLY GOING TO GET WORSE FOR THEM IN SOME PLACES THE ECONOMICS ARE NOT THERE AND YOU JUST CAN'T JUSTIFY IT 9312010197 931201 INTERNATIONAL SUMMA INVESTMENTS ACQUISITION SINGAPORE SUMMA INVESTMENTS LTD A SINGAPORE PROPERTY CONCERN SAID IT AGREED TO ACQUIRE NEW ZEALAND INSURANCE LIFE BERMUDA LTD FOR 145 MILLION HONG KONG DOLLARS US188 MILLION FROM A UNIT OF BRITAIN'S GENERAL ACCIDENT PLC NEW ZEALAND INSURANCE IS A SMALL HONG KONGBASED LIFE INSURANCE COMPANY SEAPOWER INTERNATIONAL HOLDINGS LTD OF HONG KONG AND ITS PARTNER STATEOWNED CHINA NATIONAL CEREALS OILS & FOODSTUFFS IMPORT & EXPORT CORP LAST WEEK ACQUIRED VOTING CONTROL OF SUMMA INVESTMENTS 9312010196 931201 MARKETING & MEDIA ADVERTISING SOME BIG ADVERTISERS FAIL TO SHOW FOR WHITTLE'S CLASSROOM NEWS BY SUZANNE ALEXANDER RYAN SOME MAJOR ADVERTISERS HAVE BECOME DROPOUTS FROM WHITTLE COMMUNICATIONS' CLASSROOM NEWS SHOW THIS YEAR BECAUSE OF RISING AD RATES AND DOUBTS ABOUT HOW EFFECTIVELY IT REACHES TEENAGE CONSUMERS WHITTLE'S RATES FOR CHANNEL ONE ARE UP 26 FROM A YEAR AGO TO 198000 PER 30SECOND SLOT ON A 20 INCREASE IN ITS GUARANTEED AUDIENCE OF 72 MILLION VIEWERS ADVERTISING EXECUTIVES SAY MANY NETWORK TELEVISION SHOWS INCREASED THEIR RATES THIS SEASON BY ONLY SINGLEDIGIT NUMBERS WHITTLE OF KNOXVILLE TENN SAYS IT LOST GILLETTE EASTMAN KODAK AND FRUIT OF THE LOOM THIS YEAR BUT THE COMPANY SAYS THAT IT HAS ATTRACTED SOME NEW ADVERTISERS INCLUDING RJR NABISCO AND THE ARMY RESERVE AND RECENTLY SIGNED EXISTING SPONSORS TO NEW LONGTERM CONTRACTS FOR THIS SCHOOL YEAR WHITTLE PROJECTS A 16 REVENUE GAIN TO 1129 MILLION LATE YESTERDAY WHITTLE SAID THAT THE TOTAL NUMBER OF CHANNEL ONE ADVERTISERS THIS SCHOOL YEAR HAS BEEN 21 UP FROM 18 LAST YEAR SOME AD AGENCIES BELIEVE CHANNEL ONE IS OVERPRICED IF YOU BELIEVE THEIR OWN AUDIENCE NUMBERS CHANNEL ONE'S PROBABLY OVERPRICED BY 30 TO 40 SAYS JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING IN NEW YORK HE SAYS OTHER TEENORIENTED SHOWS ARE LESS COSTLY MICHELE SZYNAL A SPOKESWOMAN FOR GILLETTE IN BOSTON SAYS WE ONLY HAD SO MANY ADVERTISING DOLLARS TO SPEND AND WE DECIDED TO SPEND THEM IN MORE MAINSTREAM FORMS OF ADVERTISING THAT COULD TARGET A BROADER AUDIENCE GILLETTE BEGAN ADVERTISING ITS SENSOR RAZOR ON CHANNEL ONE IN JANUARY 1990 THE COMPANY DIDN'T RENEW ITS CONTRACT AFTER IT EXPIRED IN THE SPRING A SPOKESMAN FOR KODAK OF ROCHESTER NY SAID THE COMPANY DECIDED NOT TO SIGN A CHANNEL ONE CONTRACT AFTER A THREEMONTH TRIAL DUE TO BUDGETARY PRESSURES THE UNIQUE DELIVERY OF CHANNEL ONE BROADCAST BY SATELLITE TO ABOUT 12000 CLASSROOM TVS NATIONWIDE CONTINUES TO RAISE QUESTIONS ABOUT THE ATTENTIVENESS OF STUDENTS MANY OF WHOM ARE EXPOSED TO THE NEWS PROGRAM DURING BUSY HOMEROOM PERIODS SAYS ERICA GRUEN SENIOR VICE PRESIDENT AT SAATCHI & SAATCHI ADVERTISING IN NEW YORK HOW LIKELY IS A KID SITTING IN A CLASSROOM TO BE WATCHING IT'S A SUBJECT OF ONGOING DEBATE JORGE RODRIGUEZ VICE PRESIDENT OF MARKETING AND ADVERTISING FOR SPRINT IN KANSAS CITY MO SAID HIS COMPANY DROPPED ITS ONEYEAR CHANNEL ONE CONTRACT LAST YEAR BECAUSE AMONG OTHER THINGS SPRINT QUESTIONED WHETHER STUDENTS WERE WATCHING THE SHOW FURTHERMORE HE SAYS THERE'S A VALUE EQUATION WHICH ASKS IS THE PRICE THAT WHITTLE CHARGES REASONABLE' THEY'RE DEMANDING PRIMETIME TOPRATED SHOW RATES FOR SOMETHING THAT IS NEITHER PRIMETIME OR TOPRATED THE LOSS OF SUCH MAJOR ADVERTISERS ON CHANNEL ONE COMES AS WHITTLE STRUGGLES WITH OTHER VENTURES IT'S FACING AN UPHILL BATTLE TO RETAIN ADVERTISERS FOR ITS MEDICAL NEWS NETWORK BROADCAST TO DOCTORS' OFFICES AND EARLIER THIS YEAR IT DIDN'T ATTRACT THE FINANCING IT HAD SOUGHT TO OPEN A CHAIN OF SCHOOLS TO BE SURE SOME SPONSORS HAVE REMAINED WITH CHANNEL ONE SINCE ITS INCEPTION IN 1990 IT'S VERY EFFECTIVE IN REACHING A SEGMENT THAT IS OTHERWISE NOT THAT EASY TO REACH WE WILL DEFINITELY CONTINUE TO USE CHANNEL ONE SAID PATTI JO SINOPOLI A SPOKESWOMAN FOR GATORADE A QUAKER OATS UNIT UNDER ITS ORIGINAL CONTRACTS WITH SCHOOLS WHITTLE CAN AIR UP TO TWO MINUTES OF COMMERCIALS DURING THE 12MINUTE DAILY CHANNEL ONE PROGRAM SINCE THE SCHOOL YEAR BEGAN HOWEVER PARENTS WHO CLOSELY MONITOR CHANNEL ONE BROADCASTS SAY IT HASN'T FILLED THE FULL TWO MINUTES WITH COMMERCIALS ON 29 OF 56 DAYS THEY HAVE WATCHED THE PROGRAM INSTEAD THE PARENTS SAY PUBLICSERVICE ADS WERE OFTEN SUBSTITUTED ON AT LEAST NINE DAYS THESE PARENTS ADD CHANNEL ONE BROADCAST ONLY 60 SECONDS OF COMMERCIALS THERE HAVE BEEN ABOUT 65 BROADCAST DAYS FOR THE WHITTLE PROGRAM THIS YEAR JIM RITTS PRESIDENT OF NETWORK AFFAIRS FOR CHANNEL ONE SAYS THE RATE OF AD PLACEMENTS TO DATE ISN'T A SIGNIFICANT BAROMETER OF CHANNEL ONE'S SUCCESS ON CERTAIN DAYS BIG NEWS EVENTS HAVE PREEMPTED A FULL SCHEDULE OF COMMERCIALS HE SAYS THERE'S ABSOLUTELY NO EVIDENCE THAT ADVERTISERS ARE TURNING AWAY FOR THE 19931994 SCHOOL YEAR WE EXPECT TO BE 91 TO 93 SOLD OUT IT'S BEEN THAT WAY FOR THE LAST THREE YEARS MR RITTS SAYS THAT AS OF SEPT 15 ADVERTISERS HAD COMMITTED TO SPEND 83 MILLION ON CHANNEL ONE FOR THE 199394 SCHOOL YEAR COMPARED WITH 71 MILLION COMMITTED AT THE SAME TIME A YEAR AGO HE DECLINES TO RELEASE MORE RECENT RESULTS TWO MAJOR COMPANIES RECENTLY SIGNED SEPARATE FIVEYEAR ADVERTISING CONTRACTS WITH CHANNEL ONE TOTALING 150 MILLION AND TWO OTHER COMPANIES VERBALLY AGREED TO FIVEYEAR PACTS WORTH 57 MILLION MR RITTS SAYS HE DECLINES TO IDENTIFY THE ADVERTISERS CHANNEL ONE HAS AMENDED ITS POLICY OF SIGNING ONLY ONE ADVERTISER IN EACH PRODUCT CATEGORY NOW ALLOWING CERTAIN EXCEPTIONS WHILE CRITICS SAY IT'S ANOTHER SIGN OF WEAK SALES WHITTLE CONTENDS THAT'S NOT THE CASE WHITTLE IS 375 OWNED BY TIME WARNER INC PHILIPS ELECTRONICS OF THE NETHERLANDS AND ASSOCIATED NEWSPAPER HOLDINGS OF BRITAIN EACH OWN ABOUT 25 AFTER HOLDING INFORMAL TALKS WITH THREE OTHER AGENCIES TRANS WORLD AIRLINES INC SAID IT WON'T SWITCH AD AGENCIES AFTER ALL A TWA SPOKESMAN SAID THE MOUNT KISCO NY AIRLINE HAS DECIDED TO KEEP ITS 60 MILLION WORLDWIDE ACCOUNT AT BACKER SPIELVOGEL BATES A UNIT OF SAATCHI & SAATCHI CO THE ACCOUNT INCLUDES 45 MILLION IN DOMESTIC AND 15 MILLION IN INTERNATIONAL ADVERTISING HE SAID THE DECISION ENDS THREE WEEKS OF TALKS AND CREATIVE PRESENTATIONS FROM BACKER AND THREE OTHER CONTENDERS INCLUDING D'ARCY MASIUS BENTON & BOWLES NEW YORK MCKINNEY & SILVER RALEIGH NC AND WELLS RICH GREENE BDDP NEW YORK TWA BEGAN ITS FLIRTATIONS WITH THE SHOPS AFTER ANNOUNCING IN EARLY NOVEMBER THAT IT HAD EMERGED FROM BANKRUPTCYLAW PROTECTION SINCE WINNING THE ACCOUNT IN A PITCH LAST DECEMBER BACKER HAS CREATED ADS PUSHING MORE LEGROOM WITH THE COMFORT CLASS CAMPAIGN 9312010195 931201 WHO'S NEWS WILLIAMS INDUSTRIES INC WILLIAMS INDUSTRIES INC FALLS CHURCH VA ARTHUR V CONOVER III 52 YEARS OLD RESIGNED AS CHIEF FINANCIAL OFFICER OF THIS CONSTRUCTION EQUIPMENT MANUFACTURER TO HEAD CONCRETE STRUCTURES INC A UNIT WILLIAMS EXPECTS TO SELL A SUCCESSOR HASN'T BEEN NAMED 9312010194 931201 EMONS HOLDINGS CHANGES NAME YORK PA EMONS HOLDINGS INC HOLDERS APPROVED A CHANGE OF THE COMPANY'S NAME TO EMONS TRANSPORTATION GROUP INC THE SHARES WILL TRADE UNDER THE NEW NASDAQ SYMBOL EMON EFFECTIVE TODAY OFFICIALS SAID THE NEW NAME MORE CLEARLY REFLECTS THE COMPANY'S FREIGHT TRANSPORTATION AND DISTRIBUTION BUSINESS 9312010193 931201 OWENSILLINOIS JOINT VENTURE TOLEDO OHIO OWENSILLINOIS INC AND GERRESHEIMER GLAS AG OF GERMANY SAID THEY SIGNED A JOINT VENTURE AGREEMENT UNDER WHICH GERRESHEIMER WILL TAKE A 51 SHARE IN AN OWENSILLINOIS SUBSIDIARY OI KIMBLE FTS THE JOINT VENTURE WILL PRODUCE PHARMACEUTICAL PACKAGING AND SCIENTIFIC LABORATORY WARE THE TWO COMPANIES SAID THEY EXPECTED THE TRANSACTION TO BE COMPLETED BY THE END OF DECEMBER SUBJECT TO REGULATOR APPROVALS AND BANK FINANCING OI KIMBLE FTS WHICH HAS MAJOR OPERATIONS BASED IN VINELAND NJ EMPLOYS ABOUT 2000 PEOPLE AND HAS ANNUAL SALES OF APPROXIMATELY 200 MILLION 9312010192 931201 DIAMOND PACT WITH FISCHER DENVER SI DIAMOND TECHNOLOGY INC OF HOUSTON AND FISCHER IMAGING CORP OF DENVER SIGNED A LETTER OF INTENT TO DEVELOP A FLATPANEL DISPLAY SYSTEM FOR DIGITAL MAMMOGRAPHY SI DIAMOND DEVELOPS DIAMOND FILM COATINGS FOR HIGHPERFORMANCE ELECTRONICS AND OTHER APPLICATIONS FISCHER MAKES ADVANCED MEDICAL XRAY SYSTEMS 9312010191 931201 TECHNOLOGY & HEALTH FOREIGN GENE IS IMPLANTED IN TUMORS IN ADVANCE FOR GENETHERAPY MEDICINE BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS SUCCESSFULLY IMPLANTED A FOREIGN GENE DIRECTLY INTO TUMORS OF FIVE SKINCANCER PATIENTS A NOTEWORTHY ADVANCE IN THE HIGHLY EXPERIMENTAL FIELD OF GENETHERAPY MEDICINE THE RESEARCHERS AT UNIVERSITY OF MICHIGAN MEDICAL CENTER SAID THE GENE TRICKED THE BODY'S IMMUNE SYSTEM INTO LAUNCHING AN ATTACK AGAINST THE TUMORS AS IF THEY WERE FOREIGN TRANSPLANTED TISSUE THE EXPERIMENTS ARE CONSIDERED IMPORTANT BECAUSE THEY PROVIDE THE FIRST EVIDENCE THAT GENES INJECTED DIRECTLY INTO HUMAN CELLS CAN TAKE HOLD FUNCTION AND STIMULATE THE IMMUNE SYSTEM WITHOUT CAUSING UNWANTED TOXICITY THE EXPERIMENT WASN'T DESIGNED TO EVALUATE THE TECHNIQUE'S ABILITY TO SHRINK TUMORS BUT THE RESEARCHERS WERE HEARTENED WHEN THE GENETRIGGERED ATTACK CAUSED A TUMOR IN ONE PATIENT TO DISAPPEAR ALTHOUGH THERE WAS NO MEASURABLE SHRINKAGE OF THE OTHER TUMORS THE CANCER A TYPE OF MELANOMA WAS IN AN ESPECIALLY ADVANCED LETHAL FORM THAT HADN'T RESPONDED TO CONVENTIONAL THERAPY WE VIEW THIS AS VERY ENCOURAGING SAID GARY NABEL THE LEAD INVESTIGATOR AT THE ANN ARBOR MICH FACILITY DR NABEL SAID THAT SINCE THE TECHNIQUE IS RELATIVELY SIMPLE AND SAFE THE INITIAL SUCCESS CLEARS THE WAY FOR TESTING DIRECT GENE THERAPY AGAINST AN ARRAY OF ILLNESSES THE MICHIGAN RESEARCHERS ARE DEVELOPING THE TECHNIQUE WITH VICAL INC A SAN DIEGO BIOTECHNOLOGY COMPANY INTERESTED IN USING IT INITIALLY AGAINST CANCER AND HEART DISEASE HOWEVER DR NABEL SAID IT IS PREMATURE TO SAY THIS IS GOING TO BE AN EFFECTIVE TREATMENT FOR MELANOMA NONETHELESS BASED ON THE FIVEPATIENT TEST DR NABEL AND HIS COLLEAGUES RECENTLY RECEIVED FEDERAL APPROVAL TO TEST THE GENEINJECTION IDEA IN 24 ADDITIONAL PATIENTS IN MUCH HIGHER DOSES AND AGAINST CANCER OF THE COLON AND OTHER CANCERS THE PRELIMINARY TEST RESULTS REPORTED IN THE CURRENT ISSUE OF THE PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES FOLLOW THREE YEARS OF RESEARCH IN WHICH DR NABEL AND HIS WIFE ELIZABETH AND THEIR COLLEAGUES AT MICHIGAN HAVE ATTEMPTED TO DEVELOP A SIMPLE YET SAFE WAY TO DELIVER THERAPEUTIC GENES TO THE SITE OF DISEASE MOST OTHER EFFORTS AT USING GENE THERAPY TO TREAT INHERITED DISEASES AND OTHER CONDITIONS HAVE ATTEMPTED TO DELIVER GENETIC MATERIAL ENCASED IN DEACTIVATED VIRUSES VIRUSES ARE USEFUL BECAUSE THEY NATURALLY INCORPORATE THEIR GENES INTO THE NUCLEUS OF CELLS THEY INFECT BUT THERE HAS LONG BEEN A CONCERN THAT USING VIRUSES CAN POSE A RISK SAYS JEFF LEIDEN A RESEARCHER AT THE UNIVERSITY OF CHICAGO WHO IS SEEKING TO USE DIRECT GENE THERAPY AGAINST HEART DISEASE THE NABELS BELIEVED IT WAS POSSIBLE TO INJECT GENES DIRECTLY INTO HUMAN CELLS AND THIS NEW REPORT SHOWS THEY WERE RIGHT IN THE EXPERIMENT THE RESEARCHERS SOUGHT TO MAKE THE MELANOMA TUMORS APPEAR AS FOREIGN TISSUE TO THE IMMUNE SYSTEM THEY USED A GENE THAT PRODUCES A PROTEIN THAT LIKE AN ID BADGE SITS ON THE SURFACE OF CELLS AND SIGNALS THE IMMUNE SYSTEM WHETHER A CELL IS A FRIEND OR FOE THE GENE CODES FOR WHAT'S CALLED A TRANSPLANTATION PROTEIN A SURFACE BADGE THAT CAUSES THE IMMUNE SYSTEM TO REJECT TRANSPLANTED TISSUE THE MICHIGAN GROUP ENCASED THE GENE IN A LIPOSOME A FATTY GLOBE OF MATERIAL THAT HELPED THE GENE SLIDE INTO THE TUMOR CELL'S INNER REACHES IN THE TEST THE SCIENTISTS FOUND THAT ONCE INSIDE THE CELL THE GENE PRODUCED THE NEW FOREIGN PROTEIN WHICH EMERGED ON THE CELL'S SURFACE THE FOREIGN PROTEIN THEN TRIGGERED THE IMMUNE SYSTEM TO PRODUCE WHITE BLOOD CELLS WHOSE NORMAL JOB IS TO KILL INVADING BACTERIA OR VIRUSES WE SUSPECT TUMORS GROW WHEN THEY SOMEHOW EVADE DETECTION FROM THE IMMUNE SYSTEM GARY NABEL SAID IN AN INTERVIEW OUR GOAL WITH THIS TECHNIQUE IS TO ALERT THE IMMUNE SYSTEM TO THE TUMOR THE SCIENTISTS FOUND THAT IN ONE PATIENT THE GENE INJECTED INTO A TUMOR CELL GENERATED AN ATTACK THAT WIPED OUT THE TUMOR AND ALSO STIRRED AN ATTACK ON TUMORS ELSEWHERE IN THE PATIENT'S BODY DR NABEL SAID THE KEY TO THE TECHNIQUE WILL BE ITS ABILITY TO STIMULATE A BODYWIDE IMMUNESYSTEM ATTACK SINCE IT WILL BE IMPRACTICAL TO DIRECTLY INJECT THE GENE MATERIAL INTO EVERY CANCER CELL 9312010190 931201 CANADA'S GDP RISE IN 3RD PERIOD LED BY EXPORTS TO US BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S GROSS DOMESTIC PRODUCT ROSE AT AN ANNUAL RATE OF 24 IN THE THIRDQUARTER LED BY STRONG EXPORTS TO THE US STATISTICS CANADA A GOVERNMENT AGENCY SAID THE JULYSEPTEMBER PERIOD WAS THE 10TH CONSECUTIVE QUARTER THAT CANADA HAS RECORDED AN INCREASE IN ITS GDP THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE COUNTRY EXPORTS ROSE AT AN ANNUAL RATE OF 78 IN THE THIRD QUARTER IN RESPONSE TO THE US ECONOMIC ADVANCE THE US TAKES MORE THAN 80 OF CANADA'S EXPORTS STRONG BUSINESS SPENDING ON MACHINERY AND EQUIPMENT ALSO CONTRIBUTED TO THIRDQUARTER GROWTH STATISTICS CANADA SAID CONSUMER SPENDING DAMPED BY RECENT TAX INCREASES SHOWED ONLY A MODEST GAIN ECONOMISTS PREDICT THAT CANADA'S ECONOMIC GROWTH WILL ACCELERATE IN COMING MONTHS AS A RESULT OF GROWING US DEMAND FOR AUTOS BUILDING MATERIALS AND OTHER GOODS WHICH CANADA EXPORTS THE US ECONOMY WILL REMAIN CANADA'S DRIVING FORCE INTO 1994 SAID JOHN CLINKARD SENIOR ECONOMIST AT THE CANADIAN IMPERIAL BANK OF COMMERCE CANADIAN COMPANIES HAVE BECOME MORE COST COMPETITIVE IN THE US MARKET AS A RESULT OF SLOW GROWTH IN CANADIAN LABOR COSTS AND A DECLINE IN THE CANADIAN DOLLAR TO NEAR ITS LOWEST LEVEL AGAINST ITS US COUNTERPART IN SIX YEARS THE CANADIAN DOLLAR WAS QUOTED LATE YESTERDAY AT 7489 US CENT STATISTICS CANADA SAID THE GDP FIGURES SHOWED ESSENTIALLY NO INFLATION IN THE THIRDQUARTER AS CANADA'S ECONOMIC GROWTH PICKS UP TAX REVENUE WILL RISE EASING THE GOVERNMENT'S SERIOUS DEFICIT PROBLEM SAID NEIL JOHNSON CHIEF ECONOMIST AT NESBITT THOMSON INC A TORONTO SECURITIES COMPANY THE FEDERAL GOVERNMENT IS FACING A RECORD BUDGET DEFICIT OF AT LEAST 44 BILLION CANADIAN DOLLARS US3295 BILLION IN THE CURRENT FISCAL YEAR ENDING MARCH 31 FINANCE MINISTER PAUL MARTIN SAID MONDAY SEPARATELY STATISTICS CANADA REPORTED THAT CANADA HAD A THIRDQUARTER DEFICIT OF C631 BILLION ON THE CURRENT ACCOUNT OF ITS INTERNATIONAL BALANCE OF PAYMENTS IN THE SECONDQUARTER THE DEFICIT TOTALED C654 BILLION THE CURRENT ACCOUNT IS MAINLY A FINANCIAL ACCOUNTING OF THE COUNTRY'S TRADE IN GOODS AND SERVICES 9312010189 931201 RUSSIAN EXECUTIVES IN SURVEY EXPRESS CAUTIOUS OUTLOOK BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RUSSIAN BUSINESS EXECUTIVES ARE FAR LESS OPTIMISTIC ABOUT THEIR COUNTRY'S LONGTERM GROWTH PROSPECTS THAN ARE NONRUSSIAN EXECUTIVES ACCORDING TO AN INITIAL DUN & BRADSTREET CORP SURVEY OF RUSSIAN BUSINESS SENTIMENT COMPARED WITH RUSSIANS NEARLY TWICE AS MANY NONRUSSIANS EXPECT IMPORTANT LONGTERM GROWTH SAID JOSEPH W DUNCAN D&B VICE PRESIDENT AND CHIEF ECONOMIST THERE IS A LARGE DEGREE OF UNCERTAINTY REGARDING THE CURRENT GOVERNMENT HE SAID WITHOUT THE FUNDAMENTAL UNDERSTANDING OF A FREEMARKET ECONOMY IT IS DIFFICULT FOR MANY RUSSIANS TO FORESEE THE POSITIVE EFFECTS OF THIS TRANSITION THE SURVEY OF 876 BUSINESS EXECUTIVES WAS CONDUCTED AT A MAJOR TRADE SHOW IN MOSCOW IN SEPTEMBER JUST BEFORE THE CURRENT POLITICAL CRISIS SPARKED BY THE DISSOLUTION OF PARLIAMENT THE NONRUSSIANS MOSTLY WERE EUROPEANS BUT INCLUDED SOME AMERICANS AND ASIANS BOTH RUSSIANS AND NONRUSSIANS WHO WERE SURVEYED SAID ADOPTING A SIMPLER SYSTEM OF TAXES WOULD BE THE MOST IMPORTANT STEP TOWARD IMPROVING THE RUSSIAN ECONOMY RUSSIAN RESPONDENTS SAID THE NEXTMOSTIMPORTANT ISSUE WAS MAINTAINING A STABLE EXCHANGE RATE FOR THE RUBLE WHILE NONRUSSIAN EXECUTIVES SAID THAT EDUCATING THE LABOR FORCE ON FREEMARKET PRINCIPLES WAS THE SECONDMOSTSIGNIFICANT STEP ACCORDING TO THE SURVEY AMONG NONRUSSIAN EXECUTIVES IN MOSCOW SURVEYED BY D&B 415 SAID THEY EXPECT RUSSIA'S ECONOMIC OUTLOOK TO IMPROVE A GREAT DEAL OVER THE NEXT FIVE YEARS WHILE ONLY 23 OF RUSSIAN BUSINESS EXECUTIVES AGREED NEARLY 59 OF RUSSIAN BUSINESSMEN EXPECT THE LONGTERM ECONOMY TO IMPROVE SOMEWHAT COMPARED WITH 37 OF NONRUSSIAN BUSINESSMEN A MAJORITY OF BOTH RUSSIAN AND NONRUSSIAN EXECUTIVES IN THE SURVEY AGREED THE COUNTRY'S ECONOMIC PROSPECTS IN THE NEXT 10 MONTHS WILL IMPROVE SOMEWHAT THE SURVEY CONDUCTED LARGELY AMONG EXECUTIVES IN CONSTRUCTION BUILDING AND RELATED INDUSTRIES INDICATED THAT MOST OF THE RUSSIAN EXECUTIVES WERE MANAGERS OR SELFEMPLOYED AND VERY FEW WERE OWNERS OR INVESTORS THE MEDIAN AGE OF RUSSIANS FIRMS WAS THREE YEARS AND THE MEDIAN GROSS SALES FOR THE COMPANIES PROFILED WAS ABOUT 100000 WITH ONLY ONEQUARTER REPORTING SALES OF MORE THAN 1 MILLION THE RUSSIAN FIRMS SURVEYED WERE DIVIDED EQUALLY AMONG NEW PRIVATE ENTERPRISES STATE ENTERPRISES AND FORMER STATE ENTERPRISES THAT HAVE BEEN PRIVATIZED D&B SAID 9312010188 931201 GOLDMAN SACHS IS EXPECTED TO BE CITED IN AN SEC COMPLAINT ON TAX TRADES' BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS EXPECTED TO FILE AN ADMINISTRATIVE COMPLAINT ALLEGING THAT GOLDMAN SACHS & CO VIOLATED RECORDKEEPING LAWS IN CONNECTION WITH TREASURY SECURITIES TAX TRADES IN THE 1980S ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THESE PEOPLE SAID GOLDMAN SACHS IS EXPECTED TO SETTLE THE CASE WHICH INVOLVES ALLEGEDLY PREARRANGED SECURITIES TRADES DESIGNED TO CREATE THE FALSE APPEARANCE OF TRADING LOSSES FOR TAX PURPOSES THE SEC IS EXPECTED TO SAY THAT GOLDMAN'S RECORDKEEPING VIOLATIONS OCCURRED IN CONNECTION WITH TAX TRADES INITIATED BY SALOMON BROTHERS INC IN 1986 AS WELL AS WITH SMALLER BUT SIMILAR TRADES UNDERTAKEN ON GOLDMAN SACHS'S OWN INITIATIVE IN THE MID1980S THESE PEOPLE SAID A GOLDMAN SACHS SPOKESMAN DECLINED TO COMMENT ON THE MATTER AS DID AN SEC SPOKESMAN NO INDIVIDUALS ARE EXPECTED TO BE SINGLED OUT AS CULPABLE IN THE SEC'S EXPECTED ACTION AGAINST GOLDMAN SACHS DETAILS OF THE SETTLEMENT COULDN'T BE ASCERTAINED YESTERDAY THE CASE IS EXPECTED TO BE BROUGHT IN AN ADMINISTRATIVE PROCEEDING WHICH IS HANDLED BY AN SEC ADMINISTRATIVE LAW JUDGE AS OPPOSED TO A CIVIL CASE IN WHICH A COMPLAINT IS FILED IN COURT THE SEC HAS SIMILAR REMEDIES AVAILABLE IN BOTH TYPES OF CASES SUCH AS FINES AND AGREEMENTS NOT TO VIOLATE THE LAW IN THE FUTURE SOME LAWYERS ASSOCIATE ADMINISTRATIVE PROCEEDINGS WITH MORETECHNICAL MATTERS WHERE CASE LAW MAY BE UNCLEAR BUT WHERE THE SEC WANTS TO PUT PEOPLE ON CLEAR NOTICE THAT IT VIEWS THE CONDUCT IN QUESTION AS ILLEGAL WHEN THE SEC FILED A LAWSUIT IN US DISTRICT COURT IN NEW YORK LAST YEAR CHARGING SALOMON WITH VARIOUS SECURITIESLAW VIOLATIONS RELATING CHIEFLY TO THE FIRM'S TREASURYAUCTION SCANDAL IT ACCUSED SALOMON OF ENGAGING IN PREARRANGED TRADES OF TREASURY SECURITIES TO CREATE FICTITIOUS LOSSES FOR TAX PURPOSES IN 1986 BECAUSE THESE TRANSACTIONS WERE PREARRANGED SALOMON BROTHERS TOOK NO MARKET RISKS THE AGENCY SAID ASSERTING THAT SALOMON ENGAGED IN THE TRANSACTIONS TO CREATE THE FALSE APPEARANCE THAT IT HAD REALIZED BONA FIDE TRADING LOSSES FOR TAX PURPOSES THE SEC SAID THAT THESE TRANSACTIONS CREATED THE APPEARANCE OF APPROXIMATELY 168 MILLION OF TRADING LOSSES A MAJORITY OF WHICH WERE CLAIMED AS TRADING LOSSES ON ITS 1986 US INCOME TAX RETURN AND THAT SALOMON UNDERPAID FEDERAL INCOME TAXES IN 1986 AS A RESULT SALOMON NEITHER ADMITTED NOR DENIED THIS CHARGE IN SETTLING IT AS PART OF AN OVERALL ACCORD IN WHICH IT PAID 290 MILLION THE SEC CHARGED THAT FORMER SALOMON HEAD BOND TRADER PAUL MOZER ENGINEERED SALOMON'S TAX TRADES MR MOZER SUPPLIED INFORMATION TO THE GOVERNMENT REGARDING THE TAX TRADES ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER IN LATE SEPTEMBER MR MOZER PLEADED GUILTY TO TWO FELONY COUNTS OF MAKING FALSE STATEMENTS TO FEDERAL OFFICIALS CONCERNING A TREASURYSECURITIES AUCTION HE ALSO FACES A NUMBER OF SECURITIES CHARGES IN A CIVIL LAWSUIT BROUGHT BY THE SEC WE ARE IN ACTIVE LITIGATION WITH MR MOZER AN SEC OFFICIAL SAID FEDERAL OFFICIALS EARLIER HAVE SAID PRIVATELY THAT THE GOVERNMENT HAD RULED OUT THE OPTION OF FILING TAXFRAUD CHARGES AGAINST SALOMON BUT THEY HAVE SAID THAT THE SECURITIES TRADES IN QUESTION WOULD BE AUDITED IN DUE COURSE AND THAT ANY MONEY DUE WOULD BE ASSESSED 9312010187 931201 HIGH COURT SPARES CMS ENERGY DEARBORN MICH THE US SUPREME COURT HAS REFUSED TO HEAR A LEGAL CHALLENGE AGAINST CMS ENERGY CORP'S MIDLAND COGENERATION VENTURE BY MICHIGAN'S ATTORNEY GENERAL AND A GROUP OF LOCAL UTILITY COMPANIES THE COGENERATION VENTURE USES NATURAL GAS TO PRODUCE ELECTRICITY AND STEAM FROM A FAILED NUCLEARPOWER PLANT THE VENTURE WHICH HAS BEEN PRODUCING POWER SINCE 1990 IS 49 OWNED BY A SUBSIDIARY OF CMS ENERGY WITH THE REMAINING 51 INTEREST HELD BY A CONSORTIUM OF COMPANIES THE SUPREME COURT DECISION ALLOWS THE MIDLAND COGENERATION VENTURE TO CONTINUE SELLING ITS POWER AT 362 CENTS PER KILOWATT HOUR THE SAME RATE AS A COALFIRED PLANT 9312010186 931201 BOEING TO ANNOUNCE MORE LAYOFFS CUTS IN PRODUCTION AS ORDERS PROVE SCARCE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO FACING A CONTINUED DEARTH OF MAJOR AIRPLANE ORDERS IS EXPECTED TO ANNOUNCE TODAY MORE PRODUCTION CUTS AND FURTHER JOB LOSSES THE SEATTLE AIRPLANE MAKER WHICH ANNOUNCED PLANS IN FEBRUARY TO SLASH PRODUCTION BY 46 WILL FURTHER REDUCE PRODUCTION OF ITS 747 JUMBO JETS BY A THIRD TO TWO A MONTH FROM THREE A MONTH IN JANUARY 1995 ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY'S PLANS AT THE SAME TIME THE PRODUCTION RATE OF ITS SMALLER TWINENGINE 737 MODELS WILL BE CUT TO 85 A MONTH FROM 10 A MONTH THE INDIVIDUALS SAID THE PRODUCTION CUTS WILL RAISE THE NUMBER OF JOBS LOST BY AS MANY AS 3000 OR 35 OF BOEING'S WORK FORCE THE CUTS ALREADY UNDER WAY WILL ELIMINATE 27000 JOBS BY THE MIDDLE OF 1994 A SPOKESMAN AT THE COMPANY'S COMMERCIALAIRPLANE UNIT DECLINED TO COMMENT ON THE LATEST PLANS TO CUT BACK PRODUCTION WHILE THE COMPANY HAS ACKNOWLEDGED IT HAS BEEN REVIEWING PRODUCTION RATES THE SPOKESMAN SAID THAT WHEN CHANGES ARE WARRANTED IT IS OUR INTENTION TO DISCUSS THEM FIRST WITH OUR EMPLOYEES THE TIMING OF THE MOVE IS AWKWARD FOR BOEING EXECUTIVES INCLUDING SOONTORETIRE AIRPLANEUNIT PRESIDENT DEAN D THORNTON AND INCOMING UNIT CHIEF RONALD WOODARD BECAUSE IT DELIVERS BAD NEWS TO DISPIRITED EMPLOYEES JUST BEFORE THE HOLIDAYS THE PEOPLE FAMILIAR WITH BOEING'S PLANS SAID BUT COMPANY OFFICIALS ARE SAID TO FEEL THEY HAVE LITTLE CHOICE BUT TO PROCEED WITH THEIR PLANS FOR FURTHER CUTS OF THE COMPANY'S 118500 EMPLOYEES ABOUT 89000 WORK IN THE SEATTLE AREA WHERE MUCH OF THE COMMERCIALAIRPLANE PRODUCTION IS CARRIED OUT THE AIRLINE INDUSTRY HAS BEGUN TO SHOW SIGNS OF BOUNCING BACK FROM ITS THREEYEAR RECESSION ESPECIALLY IN US MARKETS BUT GLOBAL RECOVERY ALMOST CERTAINLY WILL BE SLOW AT THE SAME TIME BOEING HAS TO PLAN CUTS OR PRODUCTION INCREASES AT LEAST A YEAR IN ADVANCE BECAUSE OF THE LONG LEAD TIMES REQUIRED FOR ORDERING PARTS SUCH AS LANDING GEARS THE NEED TO HALT SOME PARTSPRODUCTION AND PROCESSES SOON MEANS THAT ADDED LAYOFFS COULD BEGIN WITHIN 60 DAYS AT BOEING AND AT SOME OF ITS SUPPLIERS AMONG THE BIG SUPPLIERS IS LOS ANGELESBASED NORTHROP CORP WHICH MAKES FUSELAGE SECTIONS FOR THE 747 MR WOODARD A LONGTIME BOEING EXECUTIVE AND OTHER TOP COMPANY MANAGERS HAVE BEEN PUSHING AGGRESSIVELY TO SHORTEN THE LENGTH OF TIME IT TAKES TO MAKE A JET REMOVING SOME OF THE GUESSWORK FROM PRODUCTION PLANNING BOEING OFFICIALS HAD BEEN HOPING SINCE THE SUMMER THAT PRODUCTION RATES WOULD BE BUTTRESSED BY THEIR EXPECTED SHARE OF AN IMPENDING 60 AIRCRAFT ORDER FROM SAUDI ARABIA'S STATERUN CARRIER OTHER HOPES IN SEATTLE HAVE BEEN PINNED TO POSSIBLE PENTAGON PLANS TO BEGIN BUYING OR LEASING 747S OR OTHER COMMERCIAL AIRCRAFT TO FILL AN EMERGING GAP IN MILITARY AIRLIFT PRESIDENT CLINTON AND BOEING CHAIRMAN FRANK SHRONTZ MET DURING A LIMOUSINE RIDE AS THE PRESIDENT FINISHED MEETINGS WITH ASIAN LEADERS IN SEATTLE NOV 19 BUT MR SHRONTZ APPEARS TO HAVE GOTTEN NO ENCOURAGEMENT THAT EITHER THE SAUDI OR PENTAGON ORDERS WOULD COME IN TIME TO AVERT FURTHER PRODUCTION CUTS BY MOVING TO A LOWER RATE OF PRODUCTION BOEING CLEARLY HAS DECIDED THAT THE BOTTOM OF THE CURRENT CYCLE OF AIRCRAFT ORDERS IS LOWER THAN IT ANTICIPATED A YEAR AGO BUT BOEING EXECUTIVES ARE UNDERSTOOD TO BELIEVE THAT MORE PRODUCTION CUTS MIGHT STILL BE NECESSARY FOR EXAMPLE WHILE THE SAUDI ORDER IS WIDELY EXPECTED TO INCLUDE SIX OF THE 747 JUMBO JETS THAT PART OF THE ORDER IS NOT YET ENSURED RIVALS AIRBUS INDUSTRIE OF EUROPE AND MCDONNELL DOUGLAS CORP ARE COMPETING FOR PARTS OF THE CARRIER'S ORDER WHILE THE NEARTERM OUTLOOK AT BOEING REMAINS BLEAK THE COMPANY CONTINUES TO BELIEVE THERE WILL BE A TURNAROUND IN THE LAST HALF OF THE DECADE ITS ADVANCED HIGHCAPACITY 777 TWINJET HAS BEEN SELLING WELL AND BOEING IS CLOSE TO OFFICIALLY SEALING ITS DECISION TO PROCEED WITH DEVELOPMENT OF A SERIES OF UPGRADED 737X AIRPLANES WITH BETTER EFFICIENCY THAN THE CURRENT 737 LINE SOUTHWEST AIRLINES RECENTLY SAID IT WOULD PLACE AN ORDER FOR 63 OF THE NEWGENERATION JETS THOSE DEVELOPMENTS WILL HELP TO KEEP TOTAL EMPLOYMENT FROM DROPPING STILL FURTHER AT WICHITA KAN WHERE THE COMPANY MAKES LARGE SECTIONS FOR THE 737 PREPARATIONS FOR THE 737X MIGHT MEAN ADDITIONS TO THE WORK FORCE THERE DESPITE THE PRODUCTION CUTS IN OTHER LINES 9312010185 931201 DEBT OF NYNEX UNIT NEW YORK NEW YORK TELEPHONE SAID IT WILL REDEEM ON DEC 30 TWO DEBENTURE ISSUES TOTALING 600 MILLION THE ISSUES INCLUDE 450 MILLION OF 38YEAR 8 5/8 DEBENTURES DUE 2024 AT 10412 OF PRINCIPAL PLUS ACCRUED INTEREST AND 150 MILLION OF 39YEAR 8 1/4 DEBENTURES DUE 2015 AT 10412 PLUS ACCRUED INTEREST NEW YORK TELEPHONE IS A SUBSIDIARY OF NYNEX CORP 9312010184 931201 MORGAN STANLEY'S BIGGS SHAKES THE HONG KONG MARKET BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG BARTON BIGGS MAY YET HAVE THE LAST LAUGH EVER SINCE THE NEW YORKBASED EMERGINGMARKETS STRATEGIST AT MORGAN STANLEY & CO DECLARED HIMSELF MAXIMUM BULLISH ON CHINA TWO MONTHS AGO ANALYSTS HERE HAVE HAD A FIELD DAY PICKING APART HIS ARGUMENTS INDEED MR BIGGS DOES SOMETIMES SOUND A TAD NAIVE WE WERE ALL STUNNED BY THE ENORMOUS SIZE OF CHINA HE WROTE IN LATE SEPTEMBER AFTER VISITING THE COUNTRY FOR THE FIRST TIME SUCH COMMENTS SIGHS A HONG KONGBASED EXECUTIVE FOR A US FUNDMANAGEMENT FIRM MAKE AMERICANS LOOK LIKE BUFFOONS MAYBE SO BUT MR BIGGS HELPED SPARK A BIG RALLY IN HONG KONG IN OCTOBER THEN KILLED IT OFF SEVEN WEEKS LATER WHAT'S MORE HE COULD WELL MOVE THE MARKET AGAIN WITH HIS NEXT PRONOUNCEMENT THAT'S BECAUSE MR BIGGS'S EFFECT ON ASIAN STOCK MARKETS HAS LITTLE TO DO WITH HIS KNOWLEDGE OF THE REGION RATHER IT'S THE PERCEPTION AMONG LOCAL INVESTORS THAT HE CAN INFLUENCE BIG US PENSION FUNDS AND OTHER INSTITUTIONAL INVESTORS LOCALS FIGURE THAT IF THEY KNOW WHAT MR BIGGS IS RECOMMENDING THEY TOO CAN PROFIT HANDSOMELY ON THE HUGE WAVES OF US MONEY THAT FOLLOW HIS ADVICE MR BIGGS'S REPUTATION AS WALL STREET'S EMERGINGMARKETS GURU MEANS THAT IN HONG KONG PEOPLE BELIEVE THAT MORGAN STANLEY HAS THE POWER TO DRIVE THE MARKET SAYS EDWARD CHAN VICE PRESIDENT OF NOMURA INTERNATIONAL HONG KONG LTD TO BE SURE MANY US INVESTORS GIVE MR BIGGS HIGH MARKS FOR INTRODUCING THEM TO FOREIGN STOCKS DENNIS LYNCH A PRINCIPAL IN THE MONEYMANAGEMENT FIRM OF LYNCH & MAYER INC ONLY RECENTLY STARTED TO INVEST SOME OF ITS 5 BILLION OVERSEAS MORGAN STANLEY REALLY EDUCATED US ABOUT FOREIGN INVESTING SAYS MR LYNCH WHO TRAVELED TO CHINA WITH MR BIGGS IN SEPTEMBER BARTON HAS BEEN IN THE VANGUARD OF RECOMMENDING INTERNATIONAL INVESTING TO DOMESTIC MONEY MANAGERS HE HAS HAD A MAJOR INFLUENCE ON HOW I LOOK AT THINGS ANOTHER NEW YORKBASED FUND MANAGER RECALLS THAT THREE YEARS AGO WHILE OTHER WALL STREET FIRMS WERE SELLING HIM ONLY US STOCKS MORGAN STANLEY PUT AN INTERNATIONAL SALESPERSON ON OUR ACCOUNT TO EXPOSE US TO INTERNATIONAL STOCKS OTHER MONEY MANAGERS LOVE MR BIGGS FOR MORE THAN HIS INVESTMENT ADVICE MARK MOBIUS MANAGING DIRECTOR AT TEMPLETON INVESTMENT MANAGEMENT HK LTD AND HIMSELF SOMETHING OF A GURU ON EMERGING MARKETS CALLS MR BIGGS SUCH A WONDERFUL WRITER MR MOBIUS SPENDS MOST OF HIS TIME AWAY FROM HIS HONG KONG OFFICE BUT HAS STANDING ORDERS FOR HIS SECRETARY TO SEND MR BIGGS'S WRITINGS TO HIM NOT THAT THOSE WRITINGS ALWAYS ARE RIGHT ON TARGET MR BIGGS'S REPORTS FROM THE FRONTIERS OF CAPITALISM SOMETIMES TEND TO STRAY FAR FROM FINANCIAL TOPICS AND FAR FROM ACCURACY IN AN OCTOBER MAILING TO CLIENTS FOR INSTANCE HE DESCRIBED FENG SHUI A SCHOOL OF GEOMANCY USED IN CHINESE ARCHITECTURE AS A 5000YEAROLD BODY OF MYSTIC AND CABALLISTIC KNOWLEDGE WHICH TAUGHT THAT BY SLEEPING WITH HUNDREDS OF WOMEN A MAN COULD PROLONG HIS LIFE TO INFINITY THAT WAS NEWS TO AT LEAST ONE EXPERT IN FENG SHUI MAYBE I'M IGNORANT BUT I HAVEN'T HEARD OF THIS ONE SAYS WONG CHUNG NGAI A FENG SHUI PRACTITIONER WHO ADVISES BUSINESSMEN IN HONG KONG AND MR BIGGS'S ARTICLES SOMETIMES ARE STRONGER ON VIVID IMAGERY THAN ON DETAILS CONSIDER THIS FROM A JULY 19 REPORT ABOUT DISCOVERING HOT EMERGING MARKETS IT'S BEST OF ALL WHEN THAT COUNTRY IS POSITIVELY MENACING WITH LURKING UZITOTING TEENAGERS AND NUBILE GIRLS IN CHADORS FANATICALLY COMMITTED TO SOME MIDDLEAGED POTBELLIED MARXIST SHEIK WHO STILL RAGES ABOUT THE SYPHILIS THAT CORTES'S MEN SPREAD A CHADOR IS A MUSLIM HEADDRESS HERNANDO CORTES CONQUERED MEXICO BUT FOR ALL THEIR PRAISE THE SOPHISTICATED US MONEY MANAGERS DENY THEY RIGIDLY ADHERE TO EACH OF MR BIGGS'S RECOMMENDATIONS IT'S STUPID WHEN SOMEONE BUYS A STOCK JUST BECAUSE A BROKER SAYS HE SHOULD SAYS THE MANAGER OF ONE GIANT US FUND WHO WENT TO CHINA WITH MR BIGGS ADDS MR LYNCH THE PEOPLE WHO WENT ON MORGAN STANLEY'S CHINA TOUR DON'T RESPOND LIKE PAVLOV'S DOGS TO BARTON BIGGS BUT SOMEBODY RESPONDED WHEN ON SEPT 30 MR BIGGS'S RINGING ENDORSEMENT OF CHINARELATED STOCKS LISTED IN HONG KONG HELPED SET OFF A SEVENWEEK RALLY THAT SENT THE HANG SENG INDEX 24 HIGHER AND THEY RESPONDED AGAIN WHEN ON NOV 17 MR BIGGS WARNED INVESTORS THAT IT WAS TIME TO LIGHTEN UP ON HONG KONG STOCKS THE NEXT DAY THE INDEX FELL 18 MORGAN STANLEY OFFICIALS CONCEDE THAT THEY WERE SURPRISED BY THEIR ABILITY TO MOVE THE HONG KONG MARKET I UNDERESTIMATED THE NUMBER OF PEOPLE WHO WOULD ACTUALLY LISTEN SAYS DAVID ROCHE MORGAN STANLEY'S GLOBAL STRATEGIST WHO VISITED CHINA WITH MR BIGGS IN SEPTEMBER AND THEN ISSUED HIS OWN BULLISH CALL ON HONG KONG'S CHINA PLAYS I EXPECTED STOCK PRICES TO GO UP IN A CIVILIZED MANNER OVER THE COURSE OF ABOUT A YEAR HE SAYS BUT LOCAL FIRMS WEREN'T SURPRISED AT HONG KONG'S SENSITIVITY TO THE HYPE HONG KONG'S PEREGRINE GROUP AND SG WARBURG SECURITIES FAR EAST LTD BOTH HAD TAKEN NOTE OF THE HUGE AMOUNTS OF MONEY THAT US INVESTORS WERE THROWING AT OVERSEAS MARKETS THUS THE ADDITIONAL INVESTMENTS FROM THE US THAT WERE TRIGGERED BY MR BIGGS'S RECOMMENDATION WERE AMPLIFIED BY LOCAL INVESTORS JUMPING ON THE BANDWAGON ANYONE WHO FOLLOWED MORGAN STANLEY'S ADVICE WOULD HAVE MADE A LOT OF MONEY BETWEEN SEPT 30 AND NOV 17 THE FIRM'S MAIN RECOMMENDATIONS SHARES OF CHINA LIGHT & POWER CO HOPEWELL HOLDINGS LTD AND HUTCHISON WHAMPOA LTD ALL SOARED BETWEEN 24 AND 50 BUT FUND MANAGERS DON'T ALWAYS LIKE TO MOVE SO FAST MORGAN STANLEY'S HONG KONG OFFICE HAS BEEN FIELDING COMPLAINTS FROM INTERNATIONAL CLIENTS WHO ARGUE THAT A GLOBAL INVESTOR SHOULD BE A BIT MORE LONG TERM IN HIS PERSPECTIVE SAYS MICHAEL BARTLETT PRINCIPAL OF THE INSTITUTIONAL EQUITY DIVISION IN MORGAN STANLEY'S HONG KONG OFFICE AND MR BIGGS'S FLIPFLOP LEFT MANY HONG KONG EXPERTS GROUSING ABOUT HIS LACK OF SOPHISTICATION THAT UTURN HAS DEFINITELY DISCREDITED MORGAN STANLEY IN THE EYES OF INSTITUTIONAL INVESTORS WHO REGULARLY WATCH ASIA'S EMERGING MARKETS SAYS WINNIE LEE ASSOCIATE DIRECTOR OF AETNA INVESTMENT MANAGEMENT HONG KONG LTD THERE WAS LESS THAN A TWOMONTH PERIOD BETWEEN THE BUY AND THE SELL AND THERE WAS NO CHANGE IN THE ENVIRONMENT BASICALLY 9312010183 931201 US IS EASING ITS STANCE ON EC FARM SUBSIDIES COMPROMISE WITH FRANCE ON AID CUTS INDICATED ON EVE OF CRUCIAL TALKS A WALL STREET JOURNAL NEWS ROUNDUP AGRICULTURE SECRETARY MIKE ESPY INDICATED THE US COULD REACH A COMPROMISE WITH FRANCE OVER FARMSUBSIDY CUTS A HEATED ISSUE THAT HAS BLOCKED COMPLETION OF WORLD TRADE TALKS THE NEW POSITION COMES ON THE EVE OF CRUCIAL TRADE TALKS BETWEEN THE US AND THE EUROPEAN COMMUNITY IT REPRESENTS A SIGNIFICANT DEPARTURE FROM WASHINGTON'S HARDLINE STANCE AGAINST EC REQUESTS FOR CHANGES TO AN AGRICULTURAL ACCORD REACHED BY THE TWO SIDES LAST YEAR IN THE SOCALLED BLAIR HOUSE AGREEMENT THE EC AGREED TO SLASH SUBSIDIZED FARM EXPORTS BY 21 OVER SIX YEARS BUT FRANCE'S POWERFUL FARMERS IN PARTICULAR HAVE OBJECTED IMPASSE OVER THE ISSUE HAS BROUGHT TO A STANDSTILL OTHER NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE OUTCOME OF TWO DAYS OF TALKS SCHEDULED TO BEGIN IN BRUSSELS TODAY BETWEEN THE EC TRADE COMMISSIONER SIR LEON BRITTAN AND US TRADE REPRESENTATIVE MICKEY KANTOR IS SEEN AS CRITICAL FOR COMPLETION OF GATT TALKS BY A DEC 15 DEADLINE BEFORE LEAVING FOR BRUSSELS US AGRICULTURE SECRETARY ESPY SUGGESTED THAT THE US MIGHT FIND A WAY TO SATISFY FRENCH DEMANDS FOR CLARIFICATIONS TO THE BLAIR HOUSE ACCORD THE US HAS RULED OUT A RENEGOTIATION OF THE PACT I THINK IT COULD BE A QUESTION OF SEMANTICS MR ESPY SAID OVER WHAT REALLY CONSTITUTES A CLARIFICATION OF BLAIR HOUSE WHAT CONSTITUTES A MODIFICATION OF BLAIR HOUSE HE HINTED WASHINGTON MIGHT BE WILLING TO GO ALONG WITH FRANCE'S DEMAND THAT THE ACCORD'S SUBSIDY CUTS BE BACKLOADED SHORTHAND FOR SMALLER CUTS AT THE BEGINNING AND STEEPER CUTS AT THE END OF THE AGREEMENT'S SIXYEAR PERIOD THAT'S SOMETHING OBVIOUSLY WE'VE GOT TO LOOK AT MR ESPY SAID IN BRUSSELS EC AGRICULTURE COMMISSIONER RENE STEICHEN SAID HE WAS OPTIMISTIC THAT THIS WEEK'S TALKS COULD LEAD TO A DEAL ON AGRICULTURE HE SAID THE TALKS WOULD MARK THE FIRST REAL NEGOTIATIONS ON FARM ISSUES RAISED BY EC MINISTERS AT A CONTENTIOUS SEPT 20 MEETING AT WHICH THE COMMUNITY REQUESTED CLARIFICATIONS TO THE BLAIR HOUSE PACT SERIOUS THINGS WILL HAPPEN IN AGRICULTURE THIS WEEK HE PREDICTED MR KANTOR SAID IN WASHINGTON THAT HE EXPECTS TO MAKE SOME PROGRESS AT THE TALKS BUT CAUTIONED THAT FLEXIBILITY IS NEEDED AT THIS POINT TO SECURE AN ACCORD HE SAID THE US AND EC COULD REACH AN OUTLINE AGREEMENT BY THURSDAY NIGHT WHEN EC FOREIGN MINISTERS ARE TO HOLD A SPECIAL MEETING BUT A FULL ACCORD PROBABLY WOULDN'T BE READY BY THEN AT A CLOSED SESSION OF THE EUROPEAN PARLIAMENT IN BRUSSELS SIR LEON WARNED THAT THE DEC 15 DEADLINE WAS CRITICAL HE SAID THERE WERE ONLY TWO POSSIBLE SCENARIOS EITHER A SUCCESS OR A DAMAGING FAILURE A MEMBER OF PARLIAMENT TOLD REPORTERS THE EC TRADE CHIEF ALSO WAS QUOTED AS REJECTING THE POSSIBILITY OF A PARTIAL GATT DEAL BY DEC 15 INSISTING THERE MUST BE A GLOBAL DEAL OR NONE AT ALL THE DEC 15 DEADLINE WAS SET BY CONGRESS AFTER THAT DATE PRESIDENT CLINTON LOSES HIS FASTTRACK AUTHORITY TO AVOID CONGRESSIONAL AMENDMENTS TO A COMPLETED GATT DEAL MEANWHILE GATT GENERAL DIRECTOR PETER SUTHERLAND SAID THAT IF THIS WEEK'S NEGOTIATIONS DON'T REACH SOME POSITIVE CONCLUSION IT WOULD BE A BAD SIGN FOR A WORLD TRADE DEAL IN THAT EVENT HE SAID THE TALKS SHOULD SHIFT IMMEDIATELY TO GENEVA THE GATT HEADQUARTERS WHERE MORE NATIONS COULD TAKE PART IN THE TALKS HANDS MR SUTHERLAND SPEAKING TO REPORTERS IN WASHINGTON BY TELECONFERENCE SAID THAT MAKING OR BREAKING A WORLD TRADE PACT IS LARGELY IF NOT COMPLETELY IN THE HANDS OF THE US AND EC THAT'S BECAUSE THE TWO SIDES ARE AT LOGGERHEADS OVER AGRICULTURE TARIFFS FINANCIAL SERVICES DUMPING AND OTHER MAJOR ISSUES DELAYING A GATT ACCORD ON FARM SUBSIDIES MR STEICHEN SAID THE US SHOULD RECOGNIZE THAT THE EC'S 1992 REVAMPING OF ITS COMMON AGRICULTURAL POLICY HAS CUT EUROPE'S NOTORIOUS FARM SURPLUSES AT A NEWS CONFERENCE MARKING A ONEYEAR REVIEW OF THE CAP REFORM HE SAID THE EC COMMISSION'S HYPOTHESES ARE BEING PROVED TRUE ON OUTPUT REDUCTION THIS YEAR'S CEREALS CROP WAS 16 MILLION TONS SMALLER THAN IT WOULD HAVE BEEN WITHOUT THE CHANGES ONE REASON THE EC WANTS TO BACKLOAD THE FARMSUBSIDY CUTS IS THAT THE CAP OVERHAUL WILL HELP BRING THE COMMUNITY'S SUBSIDIZED PRICES CLOSER TO WORLDMARKET PRICES AT THE END OF THE SIXYEAR PERIOD HOWEVER US NEGOTIATORS FEAR THAT ONCE THE SUBSIDY CUTS ARE DELAYED THEY MAY NOT HAPPEN BESIDES THE CRUCIAL SCHEDULED MEETING BETWEEN SIR LEON AND MR KANTOR TODAY'S GATT TALKS ARE SUPPOSED TO INCLUDE A GETTOGETHER BETWEEN THE US SECRETARY OF STATE WARREN CHRISTOPHER AND EC COMMISSION PRESIDENT JACQUES DELORS THE WORLD TRADE NEGOTIATIONS WERE ALSO THE CENTERPIECE OF A TWODAY FRANCOGERMAN SUMMIT CONCLUDING TODAY 9312010182 931201 INTERNATIONAL EURO DISNEY SAYS AUDIT WON'T DELAY RESTRUCTURING PLAN BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL EURO DISNEY SCA SAID PLANS BY ITS BANKERS TO CONDUCT A SPECIAL AUDIT OF THE COMPANY'S BOOKS WON'T DELAY ITS FINANCIAL RESTRUCTURING PLANS A SPOKESMAN CONFIRMED A BRITISH PRESS REPORT THAT EURO DISNEY'S BANKS PLAN TO COMMISSION A SPECIAL INVESTIGATION OF THE COMPANY'S FINANCES BUT HE SAID THE TROUBLED THEME PARK AND HOTEL OPERATOR STILL EXPECTS TO COMPLETE ITS RESTRUCTURING BY SPRING IT'S A VERY NORMAL PROCESS SAID JACQUESHENRI EYRAUD THE EURO DISNEY SPOKESMAN WE ARE WORKING WITH THE BANKS AND WILL WORK WITH THEIR CONSULTANTS WHEN THEY ARE APPOINTED SPOKESMEN FOR BOTH BANQUE NATIONALE DE PARIS AND BANQUE INDOSUEZ EURO DISNEY'S TWO LEAD BANKS DECLINED TO COMMENT ON THE INDEPENDENT AUDIT EARLIER THIS MONTH EURO DISNEY REPORTED A NET LOSS OF 53 BILLION FRENCH FRANCS 898 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 THE BIGGEST BLOW TO THE BOTTOM LINE CAME FROM AN EXCEPTIONAL LOSS OF 362 BILLION FRANCS MOST OF WHICH WENT TO WRITE OFF THE STARTUP COSTS OF THE THEME PARK ON THE OUTSKIRTS OF PARIS BUT EURO DISNEY'S MOST IMMEDIATE PROBLEM IS ITS DEBT WHICH EXCEEDS 21 BILLION FRANCS INTEREST PAYMENTS ARE SQUEEZING THE COMPANY AND HAVE PROMPTED THE RESTRUCTURING EFFORT THE COMPANY IS IN TALKS WITH ITS 60 INTERNATIONAL BANKS AND WALT DISNEY CO WHICH OWNS 49 OF EURO DISNEY ON THE RESTRUCTURING WALT DISNEY HAS PLEDGED TO SUPPORT EURO DISNEY THROUGH THE SPRING BY WHICH TIME THE RESTRUCTURING EFFORT SHOULD BE COMPLETED THE TALKS ARE WIDELY SEEN AS PITTING WALT DISNEY AGAINST THE BANKS THE US ENTERTAINMENT COMPANY WOULD SUFFER A BLOW TO ITS IMAGE AND PRESTIGE IF THE EUROPEAN PARK WERE FORCED TO SHUT DOWN AND IT IS BELIEVED THE BANKS ARE USING THAT AS LEVERAGE TO GET WALT DISNEY TO PUT IN MORE CASH AND GIVE UP SOME OF THE FEES IT RECEIVES FROM EURO DISNEY BUT WALT DISNEY IN TURN IS SAID TO BE TAKING A HARD LINE IN HOPES OF PRESSURING THE BANKS INTO WRITING OFF A LARGE PORTION OF THE DEBT 9312010181 931201 TEXAS JOURNAL HOTELS EYE A PRIME LOCATION THE HOUSTON CONVENTION CENTER BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON THREE LEADING BRAND NAMES IN HOTELS ARE COMPETING FOR ONE OF THE BIGGEST NEW PROPERTIES IN TEXAS IN YEARS THE PLANNED 1200ROOM GEORGE R BROWN CONVENTION CENTER HOTEL HILTON HOTELS CORP HYATT CORP AND MARRIOTT INTERNATIONAL INC ALL ARE INTERESTED IN MANAGING THE HOTEL THE BIG ATTRACTION IT WOULD PROVIDE A SOLID FOOTING IN THE SOUTHWEST CONVENTION MARKET AND MAKE THE WINNER BETTER ABLE TO REFER BUSINESS TO AND FROM OTHER REGIONS IT'S GOING TO BE A HORSE RACE SAYS JOHN M KEELING DIRECTOR OF PKF CONSULTING A HOTEL CONSULTING FIRM IN HOUSTON THE HOTEL IS SCHEDULED TO OPEN AS EARLY AS 1997 AND THE PROCESS OF CHOOSING A CHAIN TO RUN IT IS AT AN EARLY STAGE THREE DEVELOPER GROUPS INTERESTED IN BUILDING IT LED BY DUDDLESTEN COS AND PATRINELY GROUP INC BOTH BASED IN HOUSTON AND JMB REALTY CORP CHICAGO ARE NEGOTIATING WITH THE PROSPECTIVE HOTEL OPERATORS BY FEB 18 EACH MUST PICK A CHAIN AS ITS PARTNER AND GIVE THE CITY A FINAL PROPOSAL ON FINANCING BUILDING AND RUNNING THE HOTEL WHICH THE CITY HOPES WILL BRING LIFE TO THE UNDERUSED CONVENTION CENTER THE TEAM CHOSEN BY CITY OFFICIALS WILL RECEIVE TAX SUBSIDIES TOTALING 40 MILLION TO 70 MILLION OVER THE FIRST SEVEN YEARS THE HOTEL WILL BE OWNED BY A NONPROFIT CORPORATION TO BE RUN BY A BOARD APPOINTED BY THE MAYOR AND CITY COUNCIL THE DEVELOPER AND OPERATOR DEPENDING ON DETAILS OF THE PROPOSAL COULD SHARE IN PROFITS OF THE THREE HOTEL CHAINS HILTON WHICH HAS BEEN STEADILY LOSING MARKET SHARE IN TEXAS SINCE THE OIL BUST MAY WANT THE NEW BUSINESS THE MOST HILTON WANTS THAT HOTEL SAYS MR KEELING THEY NEED REPRESENTATION IN TEXAS HILTON BASED IN LOS ANGELES OPERATES 16 HOTELS OF MORE THAN 1000 ROOMS NATIONWIDE COMPARED WITH 12 FOR MARRIOTT SO IT HAS AN EDGE IN MARKETING ITS NAME TO CONVENTIONS THAT MOVE FROM YEAR TO YEAR SAYS PETER CARLSEN A HOTEL CONSULTANT WITH KENNETH LEVENTHAL & CO IN HOUSTON BUT MARRIOTT HAS A HUGE SALES FORCE THAT WOULD PROBABLY BE THE MOST AGGRESSIVE IN SEEKING OUT MEETING PLANNERS AND LURING THEM TO HOUSTON WITH INCENTIVES SAYS THOMAS W LATTIN A PARTNER AT COOPERS & LYBRAND IN DALLAS MARRIOTT'S WHOLE CORPORATE CULTURE IS MARKETING HE SAYS THE WASHINGTONBASED CHAIN ALSO HAS A SLIGHT EDGE IN SURVEYS OF BUSINESSTRAVELER SATISFACTION AN ASSET THAT COULD HELP BRING BUSINESS TO DOWNTOWN HOUSTON BETWEEN CONVENTIONS MR CARLSEN SAYS HYATT BASED IN CHICAGO HAS SEVEN HOTELS WITH MORE THAN 1000 ROOMS IT MAY BE LESS ATTRACTIVE TO CITY PLANNERS BECAUSE IT ALREADY HAS A HOTEL IN DOWNTOWN HOUSTON AND ADDING ANOTHER HYATT IS UNLIKELY TO DRAW MORE BUSINESS TRAVELERS THROUGH BRAND LOYALTY MR CARLSEN SAYS BOTH HILTON AND MARRIOTT SAY THEY WILL LOOK AT ANY PROPOSAL CAREFULLY BEFORE SIGNING ON WE HAVE TO ASK IF THERE'S A GOOD RETURN ON THAT INVESTMENT SAYS CARL MOTEK PRESIDENT OF HILTON'S HOTEL DIVISION THERE ARE A LOT OF GOOD HOTELS IN THE COUNTRY LOSING MONEY BECAUSE SOMEBODY WANTED TO BE THERE BADLY HYATT OFFICIALS DIDN'T RETURN CALLS SEEKING COMMENT IN THE END THE WINNER MAY COME DOWN TO ONE SIMPLE FACTOR MONEY NO HOTEL OPERATOR WILL WALK INTO THIS BUILDING WITHOUT EXPENDING SUBSTANTIAL FUNDS IN THE PLANNING PROCESS SAYS WAYNE DUDDLESTEN CHAIRMAN OF DUDDLESTEN WHICH ALONG WITH ITS TWO COMPETITORS FILED AN OFFICIAL STATEMENT EARLIER THIS MONTH SAYING IT PLANS TO SUBMIT A PROPOSAL ON THE PROJECT MR DUDDLESTEN SAYS HIS TEAM IS NEGOTIATING WITH BOTH HILTON AND MARRIOTT AND WILL CHOOSE WHICHEVER ONE IS PREPARED TO MAKE THE GREATEST COMMITMENT TO THE HOTEL IN TERMS OF BRAINPOWER CAPITAL AND OVERALL INITIATIVE MR KEELING THE CONSULTANT SAYS THE HOTEL OPERATOR MIGHT BE EXPECTED TO PROVIDE ABOUT 10 MILLION FOR THE ESTIMATED 160 MILLION PROJECT THE CITY ESTIMATES THAT THE HOTEL WILL BRING IN REVENUE OF 45 MILLION IN 1997 AND 56 MILLION IN 2004 BUT SOME PEOPLE ARE SKEPTICAL IF YOU LOOK AT THE PERFORMANCE FIGURES OF DOWNTOWN HOTELS IN HOUSTON THEY STINK SAYS BRUCE WALKER PRESIDENT OF SOURCE STRATEGIES INC A SAN ANTONIO HOTELCONSULTING FIRM AND IF YOU LOOK AT THE PLANNED LOCATION OF THAT ONE IT'S ON THE OUTSKIRTS OF TOWN IN NOMAN'S LAND 9312010180 931201 WHO'S NEWS ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER NY KAREN D SHAW 40 YEARS OLD WAS ELECTED A DIRECTOR OF THIS STATECHARTERED SAVINGS BANK THE ELECTION OF MS SHAW PRESIDENT OF THE PRIVATELY HELD INSTITUTE FOR STRATEGY DEVELOPMENT WHICH SPECIALIZES IN INFORMATION AND CONSULTING SERVICES FOR FINANCIAL INSTITUTIONS INCREASES THE BOARD'S SIZE TO 14 MEMBERS 9312010179 931201 EXXON SIGNS CHINESE PACT IRVING TEXAS EXXON CORP SAID ONE OF ITS SUBSIDIARIES SIGNED A PRODUCTIONSHARING CONTRACT WITH CHINA NATIONAL OFFSHORE OIL CORP COVERING ACREAGE IN THE EAST CHINA SEA UNDER THE CONTRACT ESSO CHINA LTD RECEIVES THE RIGHT TO EXPLORE AND DEVELOP BLOCK 34/02 LOCATED 250 MILES SOUTHEAST OF SHANGHAI THE 525000ACRE BLOCK IN WHICH EXXON HOLDS A 100 INTEREST HAS AN AVERAGE DEPTH OF 295 FEET EXXON SAID IT PLANS TO ACQUIRE SEISMIC DATA BY MID1994 AND DRILL AT LEAST ONE EXPLORATORY WELL EXXON SAID IT HAS BEEN ENGAGED IN OIL AND GAS EXPLORATION IN CHINA FOR MANY YEARS BUT THAT THE CONTRACT WITH CHINA NATIONAL OFFERS THE CHANCE TO EXPLORE IN A NEW AREA 9312010178 931201 WHO'S NEWS USF&G CORP USF&G CORP BALTIMORE THOMAS LEWIS 41 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF THIS PROPERTY AND CASUALTY INSURANCE CONCERN MR LEWIS HAS BEEN VICE PRESIDENT AND GENERAL MANAGER FOR EUROPE THE MIDDLE EAST AND AFRICA FOR SEER TECHNOLOGIES BASED IN CARY NC AT USF&G MR LEWIS SUCCEEDS JOHN ROBLIN 48 WHO HAS LEFT THE COMPANY 9312010177 931201 PEPPERAND SALT BUT IN THE HIGH SIERRA HIKE WHY IN HIMALAYAS TREK AND HIS SAWS ARE GETTING DULL 9312010175 931201 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 1/4 HIGH 3 1/16 LOW 3 1/16 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 43 DAYS 333 44 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 345 60 DAYS 344 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 272 TWO MONTHS 274 THREE MONTHS 283 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 340 SIX MONTHS BANKERS ACCEPTANCES 337 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 9/16 3 7/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 9/16 ONE MONTH 3 1/2 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 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 716 60 DAYS 722 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 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 9312010174 931201 WHO'S NEWS MARGARETTEN FINANCIAL CORP MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ THREE EXECUTIVES WERE NAMED SENIOR VICE PRESIDENTS AT THIS RESIDENTIALMORTGAGE BANKING COMPANY THE EXECUTIVES WHO CONTINUE THEIR PREVIOUS DUTIES ARE EILEEN REINHARDT 44 YEARS OLD GENERAL COUNSEL AND SECRETARY DAVID MATTHEWS 44 RESPONSIBLE FOR INFORMATION AND TECHNOLOGY AND PAUL COLLER 46 HEAD OF HUMAN RESOURCES AND ADMINISTRATIVE SERVICES 9312010173 931201 PEOPLE MIGHT BECOME CUSTOMERS JUST SO THEY CAN SPEAK WITH HER BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO FRIENDLY THIS GEORGIA WOMAN IS A PEACH SHE'S FERN WILLIAMS AN UNFLAPPABLE TELEPHONE OPERATOR WITH THE FRIENDLIEST VOICE IN CORPORATE AMERICA TO GAIN THAT HONOR MS WILLIAMS WHO ANSWERS 200 TO 300 CALLS A DAY FOR A CABLETV SOFTWARE FIRM BEAT OUT 3000 OTHER NOMINEES IN A SURVEY CONDUCTED BY A ST LOUIS CONSULTANT ON CORPORATE TELEPHONE ETIQUETTE IN THE SURVEY PEOPLE NOMINATED BY CUSTOMERS OR COWORKERS WERE CALLED BY THE CONSULTANT NANCY FRIEDMAN AND HER ASSOCIATES WHO POSED AS CONFUSED OR IRATE CUSTOMERS OR WRONGNUMBER DIALERS ONE OF THEM KEPT ASKING FOR A MILWAUKEE SAUERKRAUT COMPANY RECALLS MS WILLIAMS WHO WORKS IN ATLANTA FOR THE CABLEDATA UNIT OF US COMPUTER SERVICES INC SACRAMENTO CALIF IF THE MYSTERY CALLERS DETECTED THE SLIGHTEST IRRITATION IN A NOMINEE'S VOICE THAT PERSON WAS IMMEDIATELY DISQUALIFIED IT WAS IMPOSSIBLE TO GET AN UNPLEASANT OR CURT RESPONSE FROM FERN SAYS MS FRIEDMAN WHO STARTED HER TELEPHONE DOCTOR FIRM 10 YEARS AGO AFTER CANCELING AN INSURANCE POLICY BECAUSE OF EMPLOYEES' RUDE PHONE MANNERS THERE WAS A CARING IN HER VOICE FERN IS A ROSE MS WILLIAMS IS A STANDOUT IN AN INDUSTRY OFTEN CRITICIZED FOR GIVING SHORT SHRIFT TO SUBSCRIBERS INDEED SOME OF THE 13000 CABLEINDUSTRY FAITHFUL GATHERING TODAY IN ANAHEIM CALIF FOR THEIR ANNUAL WESTERN SHOW COULD DO WORSE THAN DROP BY BOOTH 538 WHERE MS WILLIAMS IS BEING FETED BY HER EMPLOYER SHE WILL BE AVAILABLE FOR INFORMAL POINTERS ON CUSTOMER RELATIONS FOR EXAMPLE SHE SAYS HER SECRET WEAPON IS EMPATHY ADDING CALLERS HAVE TO FEEL THEY HAVE A RIGHT TO BE STRESSED I RELATE TO THEM NOT EVERY NOMINEE IN THE SURVEY WAS A SMOOTH OPERATOR WHEN MS FRIEDMAN CALLED A BANK EXECUTIVE ABOUT A SUPPOSEDLY INCORRECT MONTHLY STATEMENT THE EXECUTIVE BEGAN TO EMOTIONALLY LEAK AT HER SHE SAYS THIS IN MS FRIEDMAN'S BOOK IS UNFORGIVABLE AS PART OF HER CORPORATE SEMINARS SHE SAYS WE'VE GOT A WHOLE VIDEO ON EMOTIONAL LEAKAGE ONE NOMINEE DEMANDED TO KNOW WHO ENTERED HIM IN THE SURVEY HE SAID YOU TAKE MY NAME OUT OF THIS CONTEST IMMEDIATELY' AND THEN HE HUNG UP ON ME SAYS MS FRIEDMAN AND HE WAS IN SALES ANOTHER NOMINEE AFTER BEING TOLD HE WAS DISQUALIFIED SAID CAN WE TRY AGAIN THAT WASN'T MY BEST 9312010172 931201 WHO'S NEWS ELSCINT LTD ELSCINT LTD HAIFA ISRAEL DR THOMAS SPACKMAN WAS NAMED SENIOR VICE PRESIDENT OF THIS MEDICAL DIAGNOSTIC IMAGING SYSTEMS COMPANY A NEW POSITION AND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS US UNIT ELSCINT INC A POSITION THAT HAS BEEN VACANT FOR MORE THAN A YEAR DR SPACKMAN 56 YEARS OLD HAS BEEN DIRECTOR OF THE RADIOLOGY DEPARTMENT OF ST FRANCIS HOSPITAL & MEDICAL CENTER HARTFORD CONN 9312010170 931201 SAMSUNG IS SELLING RECEIVABLES RIDGEFIELD PARK NJ SAMSUNG ELECTRONICS AMERICA INC SAID IT WILL SELL 200 MILLION IN TRADE RECEIVABLES TO TWO US FIRMS THAT ISSUE SECURITIES SECURED BY SUCH BILLINGS SAMSUNG AND ONE UNIT SAMSUNG SEMICONDUCTOR INC WILL SELL THE RECEIVABLES TO CORPORATE RECEIVABLES CORP NEW YORK AND FALCON ASSET SECURITIZATION CORP CHICAGO PROCEEDS WILL BE USED TO FINANCE VARIOUS SAMSUNG ACTIVITIES SAMSUNG IS THE US HOLDING COMPANY FOR SOUTH KOREA'S SAMSUNG ELECTRONICS CO A MAKER OF CONSUMER ELECTRONICS INFORMATION SYSTEMS TELECOMMUNICATION EQUIPMENT AND SEMICONDUCTORS 9312010169 931201 INTERNATIONAL NORTHERN IRELAND LOYALISTS KILL A CATHOLIC MAN BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LOYALIST GUNMEN IN NORTHERN IRELAND KILLED A CATHOLIC MAN EARLY YESTERDAY IN THE PARKING LOT OF THE FACTORY WHERE HE WORKED INCREASING FEAR OF A PROTESTANT TERRORIST CAMPAIGN TO PROTEST GOVERNMENT TALKS WITH THE IRISH REPUBLICAN ARMY THE OUTLAWED ULSTER FREEDOM FIGHTERS CLAIMED RESPONSIBILITY FOR KILLING 47YEAROLD SEAN HAGAN WITH A BARRAGE OF GUNFIRE AND LEADERS ON BOTH SIDES OF THE NORTHERN IRELAND CONFLICT IMMEDIATELY ATTRIBUTED THE MURDER TO THE BRITISH GOVERNMENT'S DISCLOSURE OVER THE WEEKEND THAT IT HAS HAD CONTACTS WITH THE OUTLAWED IRA THE KILLING ILLUSTRATES THE DIFFICULTY FACING THE BRITISH GOVERNMENT IN ITS EFFORT TO BREAK THE YEARSOLD DEADLOCK BETWEEN WARRING CATHOLIC AND PROTESTANT GROUPS IN NORTHERN IRELAND OBSERVERS SAY THAT ACHIEVING PEACE IN NORTHERN IRELAND WILL LIKELY BE MORE COMPLICATED THAN IN THE MIDEAST WHERE THE RECENT PEACE TREATY BETWEEN THE STATE OF ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION HAS SPURRED EXTREMISTS TO VIOLENCE EVEN IF THE IRA AGREES TO A CEASEFIRE THE BRITISH GOVERNMENT'S CONDITION FOR THE START OF OFFICIAL NEGOTIATIONS LOYALIST TERRORISM COULD DRAG CATHOLIC FIGHTERS BACK INTO THE FRAY APART FROM THE SHOOTING AUTHORITIES SAID TERRORISTS BOMBED A POLICEMAN'S HOUSE IN THE NORTHERN IRELAND CITY OF ARMAGH NO ONE WAS INJURED AND IT WASN'T CLEAR WHICH SIDE SET THE BOMB WE ARE NOW IN A POSITION WHERE WE ARE VERY LIKELY IN TRYING TO MAKE A DEAL WITH ONE SIDE TO PROVOKE THE OTHER TO INCREASE VIOLENCE WARNED FORMER TORY PARTY CHAIRMAN LORD TEBBIT WHO WAS SERIOUSLY INJURED IN THE IRA BRIGHTON BOMBING OF 1985 A HARDLINE UNIONIST AND OPPONENT OF THE IRA LORD TEBBIT WARNED AGAINST MAKING ANY CONCESSIONS TO THE GROUP WHOSE ULTIMATE GOAL IS TO FREE NORTHERN IRELAND OF BRITISH RULE AND UNITE IT WITH THE REPUBLIC OF IRELAND PROTESTANT MEMBERS OF PARLIAMENT FROM NORTHERN IRELAND ALSO PREDICTING AN OUTBREAK OF LOYALIST TERRORISM SAID THE GOVERNMENT'S DECISION TO TALK WITH THE IRA AFTER YEARS OF VOWING NEVER TO NEGOTIATE WITH TERRORISTS PUTS OUT THE SIGNAL THAT TERRORISM PAYS IT IS FOOLISH AND WRONG TO TALK TO THESE TERRORIST ORGANIZATIONS WILLIAM ROSS MEMBER OF PARLIAMENT FOR EAST LONDONDERRY NORTHERN IRELAND TOLD BBC RADIO 4 IT ENCOURAGES OTHER TERRORIST ORGANIZATIONS ON THE PROTESTANT SIDE IF YOU LIKE TO TURN TO VIOLENCE ON AN INCREASING SCALE WHILE DEFENDING ITS CONTACTS WITH THE IRA AS A POSSIBLE STEP TOWARD PEACE THE GOVERNMENT OF BRITISH PRIME MINISTER JOHN MAJOR IS OFFERING EMPHATIC ASSURANCES THAT NO NEGOTIATIONS WILL TAKE PLACE WITHOUT THE PARTICIPATION OF NORTHERN IRELAND PROTESTANT LEADERS AND THERE'S LITTLE QUESTION THAT THAT ASSURANCE IS ALSO MEANT TO APPEASE LOYALIST TERRORISTS WHO THIS YEAR HAVE COMMITTED ABOUT 43 MURDERS TO THE IRA'S 32 LOYALIST TERRORISTS HAVE EVEN LAUNCHED A CAMPAIGN OF KILLING BRITISH GOVERNMENT WORKERS AS A WARNING AGAINST ANY THOUGHTS OF A PULLOUT AND AS A PROTEST AGAINST THE TREATMENT OF PROTESTANTS IMPRISONED FOR INVOLVEMENT IN TERRORISM 9312010168 931201 TEXAS JOURNAL HEARD IN TEXAS FOR GLOBAL MARINE'S OFFSHORE RIGS THE TIME MAY FINALLY BE RIGHT BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON VETERAN STOCKPICKERS LIKE TO BRAG THEY'RE NEVER WRONG JUST EARLY GLOBAL MARINE MIGHT SAY JUST THE SAME AFTER TAKING ON A HEFTY 12 BILLION IN DEBT TO BUILD A TOPOFTHE LINE FLEET OF OFFSHORE DRILLING RIGS IN THE EARLY 1980S THE COMPANY SANK INTO BANKRUPTCY AS OIL PRICES PLUNGED BELOW 10 A BARREL AND DRILLING GROUND TO A NEAR HALT BUT THE ILLFATED CONSTRUCTION PROGRAM OF THE PAST DECADE MEANS GLOBAL MARINE NOW OWNS ONE OF THE LARGEST MOST MODERN FLEETS OF OFFSHORE DRILLING RIGS IN THE WORLD AT A TIME WHEN DEMAND FOR THEM IS CLIMBING STEADILY A GLOBAL BUY IS CERTAINLY RISKY ON MONDAY AS OIL PRICES PLUNGED AFTER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FAILED TO CUT PRODUCTION THE STOCK FELL 50 CENTS A SHARE OR 11 TO 3875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IT WAS UNCHANGED IN YESTERDAY'S TRADING BUT SOME ANALYSTS SAY GLOBAL'S OUTLOOK REMAINS SOLID AND THE STOCK WILL REBOUND POSSIBLY DOUBLING IN THE NEXT SEVERAL YEARS AS RISING NATURALGAS PRICES PUSH UP DAY RATES FOR RIGS IN THE GULF OF MEXICO JAMES CARROLL AN ANALYST AT PAINEWEBBER IN NEW YORK IS MAINTAINING HIS ATTRACTIVE RATING ON GLOBAL SHARES AND SAYS HE WILL PROBABLY UPGRADE IT TO A BUY IF THE STOCK DROPS FURTHER IT'S REALLY A NATURALGAS STORY NOT AN OIL STORY HE SAYS THAT'S NOT ENTIRELY TRUE WHILE HALF OF GLOBAL'S FLEET IS IN THE GULF OF MEXICO DRILLING GAS WELLS THE OTHER HALF IS ELSEWHERE DRILLING OIL WELLS SAYS DAVID HERASIMCHUK GLOBAL'S VICE PRESIDENT OF MARKET DEVELOPMENT BUT MANY ANALYSTS ARGUE THAT THE DROP IN OIL PRICES IS TEMPORARY AND WON'T HURT GLOBAL AS IT CONTINUES TO PROFIT FROM INCREASED NATURALGAS DRILLING FORECASTS OF INCREASED DEMAND FOR NATURAL GAS HAVE PULLED THE PRICE OF THAT COMMODITY UP FROM A LOW OF 1 A THOUSAND CUBIC FEET IN EARLY 1992 TO WELL OVER 2 A THOUSAND CUBIC FEET TODAY HURRICANE ANDREW ALSO BOOSTED THE PRICE BY DESTROYING DRILLING PLATFORMS IN THE GASRICH GULF THE CURRENT NATURALGAS MARKET WHICH IS GOOD BUT NOT GREAT APPEARS TO FAVOR GLOBAL WHICH OWNS 25 MODERN RIGS INCLUDING 21 PREMIUM CANTILEVER JACKUP RIGS A VERSATILE VARIETY MOST POPULAR FOR DRILLING GAS WELLS IN THE SHALLOW GULF RIG RATES STILL AREN'T STRONG ENOUGH TO JUSTIFY CONSTRUCTION OF NEW RIGS OFFSHORE DATA SERVICES ESTIMATES THAT DAY IS AT LEAST THREE OR FOUR YEARS AWAY A RATE OF 65000 A DAY IS CONSIDERED NECESSARY TO MAKE THE BUILDING OF NEW RIGS PRACTICAL BUT RATES ARE STARTING TO SURPASS THE BREAKEVEN LEVEL FOR EXISTING RIGS DAY RATES FOR A 300FOOT CANTILEVER JACKUP RIG ROSE TO BETWEEN 25000 AND 32000 NOV 1 FROM A RANGE OF 18000 TO 24000 A YEAR EARLIER MEANWHILE MANY OF GLOBAL'S COMPETITORS ARE EXPENDING CAPITAL TO REPAIR RIGS THAT ARE 20 TO 30 YEARS OLD AND HAVE BEEN IN STORAGE SINCE BETTER TIMES IN GENERAL THEIR COMPETITION WILL HAVE TO START SPENDING MONEY EARLIER AND REINVEST JUST TO KEEP THEIR RIG FLEETS FROM AGING OUT SAYS ALAN LEIFER PORTFOLIO MANAGER OF THE FIDELITY TREND FUND IN BOSTON GLOBAL'S BALANCE SHEET NOW APPEARS SOLID IT SHED MUCH OF ITS DEBT IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN 1989 AND IN A RECAPITALIZATION COMPLETED LAST YEAR IT FURTHER REDUCED ITS TOTAL DEBT BY 143 MILLION TO 225 MILLION THE COMPANY SAYS IT FACES NO DEBT PRINCIPAL PAYMENTS UNTIL 1999 EARNINGS HOWEVER REMAIN LOUSY PARTLY DUE TO THE COST OF MOVING RIGS TO THE GULF FROM SLOWER MARKETS IN THE NORTH SEA AND WEST AFRICA GLOBAL HAD A LOSS OF 28 MILLION OR 19 CENTS A SHARE IN THIS YEAR'S FIRST NINE MONTHS ANALYSTS PREDICT A PROFIT OF ONLY FIVE TO 15 CENTS A SHARE FOR 1994 FOR ANY INVESTOR INTERESTED IN TAKING A RISK ON GLOBAL HOWEVER NOW MAY BE THE TIME JAMES WICKLAND AN ANALYST AT RAUSCHER PIERCE REFSNES IN DALLAS HAS FOUND THAT AN INDEX OF OILSERVICE STOCKS GENERALLY PEAKS IN AUGUST AND FALLS TO ITS LOWEST POINT AT THE END OF NOVEMBER BETWEEN NOW AND CHRISTMAS IS AN EXCELLENT BUYING OPPORTUNITY FOR OILSERVICE STOCKS HE SAYS OTHER DRILLING CONTRACTORS INCLUDING ENERGY SERVICES AND ROWAN ARE ALSO SMART BUYS SAYS ALLEN BROOKS AN ANALYST AT HOWARD WEIL LABOUISSE FRIEDRICHS IN HOUSTON BUT GLOBAL IS THE FAVORITE OF MANY ANALYSTS BECAUSE ITS EXECUTIVES IN RECENT YEARS HAVE EARNED A REPUTATION FOR SAVVY ASSET MANAGEMENT IN AUGUST GLOBAL'S MANAGERS PICKED UP THREE RIGS GOOD FOR GULF DRILLING IN EXCHANGE FOR 17 MILLION AND A SPECIALIZED RIG FOR NORTH SEA DRILLING IF I WERE DRILLING A WELL I'D PICK ROWAN BECAUSE IT'S FILLED WITH A BUNCH OF PERFECTIONIST ENGINEERS FROM TEXAS A&M UNIVERSITY SAYS MR WICKLAND BUT AS AN INVESTOR I'D PICK GLOBAL OF COURSE PREDICTING DEMAND FOR RIGS HAS HISTORICALLY PROVED A RISKY BUSINESS SURGES IN DEMAND IN 1984 AND 1990 PROMPTED SPECULATION THAT THE MARKET WAS FINALLY BEGINNING TO IMPROVE BUT IN BOTH CASES THE CHANGES PROVED SHORTLIVED WE'VE HAD FALSE STARTS IN THE PAST SAYS GLOBAL'S MR HERASIMCHUK NYSE SYMBOL GLM 104 MILLION OR 9 CENTS A SHARE FROM THE SALE OF EQUIPMENT 11 MILLION SETTLEMENT OF A LAWSUIT 55 MILLION AND DEBT RESTRUCTURING 28 MILLION SHARES OF POWELL INDUSTRIES HOUSTON SHED MORE THAN 14 OF THEIR VALUE LAST WEEK TO CLOSE AT 6 THE MAKER OF ELECTRICAL DISTRIBUTION AND CONTROL EQUIPMENT ANNOUNCED NOV 24 THAT IT WILL TAKE A 55 MILLION PRETAX CHARGE FOR THE FISCAL YEAR ENDED OCT 31 OF THAT AMOUNT 28 MILLION IS FOR THE ADOPTION OF FASB RULE 106 WHICH REQUIRES COMPANIES TO RECOGNIZE THE COSTS OF RETIREE HEALTH BENEFITS THE REST OF THE CHARGE IS FOR LAWSUIT DEFENSE COSTS RESTRUCTURING OF A MINORITY INVESTMENT AND THE PROBABILITY THAT THE COMPANY WON'T COLLECT ON A RECEIVABLE THE RECEIVABLE RELATES TO A CONTRACT FOR THE SALE OF COGENERATION EQUIPMENT TO THE PRIME CONTRACTOR OF A COGENERATION PROJECT AT MCDILL AIR FORCE BASE NEAR TAMPA FLA EARLIER THIS YEAR THE AIR FORCE TERMINATED THE PRIME CONTRACTOR'S CONSTRUCTION CONTRACT BECAUSE OF ALLEGED DEFAULT IN FISCAL 1992 POWELL HAD EARNINGS OF 84 MILLION OR 81 CENTS A SHARE LIVING CENTERS OF AMERICA SHARES TRADED AT 39 TIMES THEIR USUAL VOLUME LAST WEEK THE HOUSTON OPERATOR OF LONGTERMCARE CENTERS REPORTED EARLY IN THE WEEK THAT AN ALABAMA JURY RULED THE COMPANY'S NEWLY ACQUIRED VARICARE UNIT MUST PAY 65 MILLION IN A LAWSUIT OVER THE DEATH OF AN 83YEAROLD RESIDENT OF A VARICARE FACILITY LIVING CENTERS SAYS IT DOESN'T BELIEVE THE VERDICT IS SUPPORTED BY THE FACTS AND PLANS TO APPEAL DAYS BEFORE LIVING CENTERS POSTED STRONGER EARNINGS THAN EXPECTED FOR THE FOURTH QUARTER ENDED SEPT 30 NET INCOME ROSE 24 TO 36 MILLION OR 38 CENTS A SHARE FROM 29 MILLION OR 31 CENTS A SHARE A YEAR EARLIER 9312010167 931201 THE FAST LANE HOW LAVISH SPENDING BROUGHT DOWN HEAD OF SHEETMETAL UNION ED CARLOUGH RAISED DUES BUT LIVED HIGH ON THEM TILL THE BOARD WOKE UP FORCED OUT IN A COUP D'ETAT' BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL A HUSH FELL OVER THE 600 ASSEMBLED OFFICERS OF THE SHEETMETAL WORKERS UNION AS EDWARD CARLOUGH WHO HAD RESIGNED AS PRESIDENT JUST A MONTH BEFORE STEPPED TO THE MICROPHONE IN THE FANTASIA BALLROOM OF WALT DISNEY WORLD'S CONTEMPORARY RESORT HOW CLASSY THOUGHT NEW PRESIDENT ARTHUR MOORE THAT THE MAN WHO HAD DOMINATED THE UNION FOR 23 YEARS HAD COME TO BID FAREWELL BUT FOR 20 MINUTES IN SLOW HALTING TONES MR CARLOUGH INSTEAD DESCRIBED FOR THE FIRST TIME HOW HIS LIFE AS A LABOR LEADER HAD CRUMBLED INTO A STRING OF ABUSES HE ADMITTED TO PERSONAL USE OF THE 25 MILLION UNION JET AND TO HUNDREDS OF THOUSANDS OF DOLLARS OF PAYMENTS TO HIS SECRETARY TO DECORATE A 19 MILLION CONFERENCE CENTER MANSION IN GREAT FALLS VA THAT BECAME HIS HOME HE DISCLOSED HIS DRUG USE PROUDLY HOLDING UP AN ALCOHOLICS ANONYMOUS CHIP RECEIVED FOR BEING CLEAN OF DRUGS AND ALCOHOL FOR A YEAR BUT HE ADDED AT EACH STEP THE UNION'S BOARD KNEW EVERYTHING AT THE END OF MR CARLOUGH'S EMOTIONAL SPEECH MR MOORE GLARED DOWN FROM THE BUNTINGBEDECKED PODIUM AT THE BOYHOOD FRIEND WHO STILL CALLED HIM COUSIN ED I'M VERY SORRY YOU CAME HERE TODAY MR MOORE BEGAN STRAINING TO KEEP CONTROL WE HAD AN AGREEMENT TO KEEP THINGS QUIET RESTRAINT SLIPPING AWAY MR MOORE BEGAN SCREAMING PROFANITIES WE'RE GOING TO TELL THE MEMBERS THE REAL TRUTH THAT MAYBE YOU SHOULD HAVE WOUND UP IN JAIL YOU ROBBED THIS UNION FROM ONE DAY TO THE NEXT OFFICIALLY MR CARLOUGH RESIGNED IN JULY AS PRESIDENT OF THE SHEET METAL WORKERS INTERNATIONAL ASSOCIATION FOR HEALTH REASONS BUT AS THE CLOSEDDOOR MEETING IN AUGUST NEAR ORLANDO FLA SHOWS THE REAL REASONS WERE FAR MORE EXPLOSIVE MR CARLOUGH WAS FORCED OUT OF OFFICE AFTER A THREEDAY INTERNAL UNION TRIAL IN WASHINGTON DC THE GIST OF THE CHARGES THAT HE HAD USED THE UNION'S 27 MILLION COFFERS GENERATED BY THE HIGHEST DUES IN THE BUILDING TRADES TO CREATE A PERSONAL FIEF FOR LAVISH LIVING AT A TIME WHEN UNEMPLOYMENT AMONG MEMBERS OF HIS UNION HAD HIT A STAGGERING 25 THE FALL OF ED CARLOUGH IS A TALE OF SEX GREED POWER AND DRUGS MONEY AND POWER CAN CORRUPT LEADERS WHETHER IN ORGANIZED LABOR BIG BUSINESS OR POLITICS BUT THE PROBLEMS CAN BE ESPECIALLY EGREGIOUS AT UNIONS WHERE THERE IS ALMOST NO OVERSIGHT WE ALL HAVE HUMAN FRAILTIES THAT WE STRUGGLE TO OVERCOME SAYS PALMER PILCHER A FRIEND OF MR CARLOUGH'S WHO NEARLY 40 YEARS AGO COACHED HIM AT AMERICAN UNIVERSITY'S POLITICAL CLUB THEY APPARENTLY OVERCAME HIM MR CARLOUGH 61 YEARS OLD CALLS THE BOARD'S DECISION TO FORCE HIS RESIGNATION A COUP D'ETAT A HANDFUL OF FOLKS RAN ME OUT OVER THE WILL OF 140000 MEMBERS HE AGREED TO BE INTERVIEWED ONLY ABOUT THE ACHIEVEMENTS OF HIS UNION DECLINING TO COMMENT ON ANY OF THE ASPECTS THAT LED TO HIS DOWNFALL MR CARLOUGH THOUGH GENERALLY IGNORED BY THE MEDIA WAS REGARDED AS ONE OF LABOR'S MOST INNOVATIVE LEADERS HE CREATED WIDELY IMITATED TRAINING PROGRAMS AND RUBBED SHOULDERS WITH SOME OF WASHINGTON'S MOST POWERFUL POLITICIANS IT'S A TRAGIC ENDING FOR A MAN WHO HAD NOTHING BUT GOOD TO OFFER SAYS BILL FILLIPPINI WHO FOR 18 YEARS HEADED THE UNION'S TRAINING FUND BUT IS IT THE END PRIVATELY SHEETMETALUNION OFFICIALS WORRY THAT MR CARLOUGH WILL RUN TO REGAIN THE PRESIDENCY AT NEXT YEAR'S CONVENTION HE DOESN'T RULE THAT OUT COYLY OFFERING ONLY THAT I HAVE BOUNDLESS ENERGY AT THE SAME TIME THOUGH ASSISTANT US ATTORNEY FOR NORTHERN VIRGINIA STEVEN LEARNED WHO IN JUNE CLOSED AN 18MONTH INVESTIGATION OF MR CARLOUGH ON QUESTIONS OF FINANCIAL IMPROPRIETY AND MISUSE OF UNION FUNDS HAS REOPENED THE CASE HE IS ARMED WITH A RAFT OF NEW DOCUMENTS PROVIDED BY THE UNION FOLLOWING AN INVESTIGATION BY AN OUTSIDE AUDITOR THE CARLOUGH NAME HAS BEEN LINKED WITH THE SHEETMETAL WORKERS FOR SEVEN DECADES MR CARLOUGH'S FATHER ALSO NAMED EDWARD JOINED THE UNION IN THE 1920S AFTER HIS WIFE COMPLAINED HE GOT INTO TOO MANY FIGHTS AS A LONGSHOREMAN HE ROSE TO PRESIDENT OF THE UNION IN 1959 AND WAS REVERED AS MR SHEET METAL LIKE HIS FATHER YOUNG ED CARLOUGH HAD AMBITIONS THE FIRST IN HIS FAMILY TO ATTEND COLLEGE HE WENT TO AMERICAN UNIVERSITY IN WASHINGTON WHERE HE PERSUADED A POPULAR CLASSMATE NAMED WILLARD SCOTT EVEN THEN A TELEVISION ANNOUNCER TO RUN FOR OFFICE WITH HIM MR CARLOUGH BECAME SENIORCLASS PRESIDENT WITH MR SCOTT TAKING THE NO 2 POST AFTER STARTING IN RESEARCH WITH THE AMERICAN FEDERATION OF LABOR BEFORE ITS MERGER INTO THE AFLCIO MR CARLOUGH JOINED HIS FATHER'S UNION EVENTUALLY BECOMING ORGANIZING DIRECTOR IN 1970 THE ELDER MR CARLOUGH RESIGNED AND THE UNION OFFICERS TAPPED HIS SON THOUGH INITIALLY SHUNNED BY FELLOW UNIONISTS AS AN ARROGANT COLLEGE BOY WITHOUT A BLUECOLLAR BACKGROUND MR CARLOUGH SOON PUT HIS STAMP ON WHAT IS THE AFLCIO'S 23RDLARGEST UNION POSSIBLY HIS MOST CREATIVE AND CONTROVERSIAL PROGRAM CALLED THE SASMI FUND FORCES EVERY CONTRACT SIGNED WITH THE SHEETMETAL WORKERS TO INCLUDE A 3 LEVY ON THE EMPLOYER'S TOTAL PAYROLL THAT MONEY IS THEN USED TO PROVIDE CHECKS EVERY SIX MONTHS TO UNEMPLOYED OR UNDEREMPLOYED MEMBERS OF THE UNION UNVEILED IN 1972 IT WAS DUBBED SOCIALISM BY CRITICS BUT MR CARLOUGH WASN'T ABOUT TO BACK DOWN HE HAD NAMED THE PROGRAM SASMI BECAUSE IT SOUNDED LIKE SAYS ME AS IN SAYS WHO SAYS ME WHICH WAS HIS RESPONSE TO A BUSINESS OWNER WHO HAD VOWED THE PLAN WOULD NEVER SURVIVE TO DATE THE FUND HAS PAID OUT MORE THAN 750 MILLION TO SHEETMETALUNION MEMBERS HELPING THEM TO MEET MORTGAGES AND CAR PAYMENTS UNTIL THEY FIND MORE WORK AIDED BY FOUR SECRETARIES MR CARLOUGH SPENT HIS DAYS AND NIGHTS DEVELOPING PROGRAMS AND A POWERFUL POLITICALACTION COMMITTEE THROUGH THE PAC THE UNION LEADER MET THEN BEFRIENDED SUCH WASHINGTON LUMINARIES AS DEMOCRATIC SEN DANIEL PATRICK MOYNIHAN OF NEW YORK AND FORMER HOUSE DEMOCRATIC WHIP TONY COELHO OF CALIFORNIA WERTHEIM SCHRODER & CO THE INVESTMENT BANKING FIRM MR COELHO JOINED AS AN INVESTMENT BANKER NOW RUNS ABOUT 35 MILLION OF THE UNION'S PENSION FUND AT ART OPENINGS IN A GEORGETOWN GALLERY RUN BY HIS WIFE JUNE MR CARLOUGH COULD COUNT ON POLITICAL NOTABLES TO SHOW UP DURING PRESIDENT BUSH'S 1990 BUDGET SUMMIT AT ANDREWS AIR FORCE BASE OREGON REPUBLICAN SEN BOB PACKWOOD PHONED FROM THE AIRPLANE HANGAR TO KEEP MR CARLOUGH APPRISED OF PENSIONTAX ISSUES ACCORDING TO MR PILCHER WHO SAYS HE WAS IN THE ROOM WITH MR CARLOUGH LAST YEAR MR CARLOUGH AND OTHER SHEETMETAL OFFICIALS HOSTED STRATEGY SESSIONS AT THE UNION'S WASHINGTON HEADQUARTERS WITH DEMOCRATIC PRESIDENTIAL CANDIDATE JERRY BROWN A FAVORITE OF MR CARLOUGH'S THE UNION'S NATIONAL PENSION FUND DESIGNED TO CONSOLIDATE LOCALS' PENSION ASSETS AND INCREASE RETURNS TO RETIREES GREW TO 18 BILLION FROM 7 MILLION IN 1970 AT THE SAME TIME DUES TO THE INTERNATIONAL JUMPED TO 2450 A MONTH FOR SOME MEMBERS UP 69 FROM 1990 THAT ALLOWED THE UNION TO TAKE IN 27 MILLION IN DUES A YEAR MR CARLOUGH ALSO WAS CONSOLIDATING POWER AT THE UNION HE HANDPICKED NOMINEES FOR THE BOARD HE PRODDED LOCALS TO PUT THEIR MONEY IN THE NATIONAL PENSION FUND AS THE HEAD OF TRUSTEES FOR THE PENSION FUND MR CARLOUGH HIRED HIS BROTHER WALTER AS FUND ADMINISTRATOR MR CARLOUGH'S COUSIN IN MASSACHUSETTS WAS TAPPED AS THE FUND'S LAWYER AT THE UNION SON CHRIS BECAME A TOP ORGANIZER AND OFTEN AN EMISSARY FOR THE UNION TO MEETINGS IN POLAND AND ISRAEL ALONG THE WAY MR CARLOUGH'S PERSONAL LIFE BEGAN GETTING COMPLICATED AFTER BEGINNING AN AFFAIR WITH HIS SECRETARY MARIA DEQUATRO HE BECAME ESTRANGED FROM HIS WIFE BUT KEPT LIVING WITH HER ACCORDING TO FRIENDS AND BUSINESS ASSOCIATES OF MR AND MRS CARLOUGH AND MS DEQUATRO WITH MS DEQUATRO AT HIS SIDE MR CARLOUGH'S BEHAVIOR TURNED ERRATIC DURING A TRIP TO TOKYO IN 1982 SAY INDIVIDUALS FAMILIAR WITH THE SITUATION THE COUPLE WERE SENT TO THEIR HOTEL AS POLICE RUMMAGED THROUGH THEIR BAGS HOURS LATER OFFICERS ARRIVED AT THE HOTEL TO PLACE THEM UNDER ARREST FOR SUSPICION OF SMUGGLING MARIJUANA INTO THE COUNTRY UNION LAWYER HARRY HUGE WAS HURRIEDLY SUMMONED TO TOKYO AFTER TWO DAYS HE WAS ABLE TO WIN MR CARLOUGH'S RELEASE BY CONVINCING AUTHORITIES THAT THE UNION PRESIDENT WASN'T A HEAVY USER AND THAT THE SMALL AMOUNT OF MARIJUANA WASN'T FOR SALE MS DEQUATRO WAS HELD FOR SEVERAL ADDITIONAL DAYS THEN RELEASED AS WELL THREE YEARS LATER ITALIAN AIRPORT POLICE CONFRONTED THE COUPLE ON A SIMILAR FINDING OF SMALL AMOUNTS OF MARIJUANA DELAYING THE UNION JET AT THAT TIME LEASED UNTIL MR CARLOUGH'S AND MS DEQUATRO'S LUGGAGE COULD BE FURTHER SEARCHED MANY UNION OFFICIALS SAY THEY DIDN'T KNOW ABOUT THE TWO DETENTIONS NOR ABOUT REGULAR WEEKEND MARIJUANA USE BY MR CARLOUGH MEANWHILE THE UNION'S BOARD RUBBERSTAMPED VAST INCREASES IN MR CARLOUGH'S SPENDING AND PERQUISITES TO HELP EASE UNION OFFICIALS' TRAVEL AMONG SMALL CITIES THE UNION BOUGHT AN AIRPLANE A SIXSEAT WESTWING THAT IT RAN FOR 1700 AN HOUR FEW OFFICERS BESIDES MR CARLOUGH USED IT BUYING CONFERENCE CENTERS IN 1986 MR CARLOUGH AND THE BOARD AGREED TO BUY A NICE BUT NOT SPLASHY SUBURBAN WASHINGTON HOUSE IN MCLEAN VA FOR MEETINGS OF THE UNION AND ITS RELATED FUNDS AND TO ENTERTAIN POLITICIANS AND OTHERS THE BOARD ALSO DETERMINED THIS SOCALLED CONFERENCE CENTER COULD BE USED AS A RESIDENCE BY MR CARLOUGH WHOSE MARRIAGE WAS BECOMING INCREASINGLY STRAINED HE MOVED INTO THE HOUSE IN LATE 1988 THE UNION SPENT ABOUT 950000 TO BUY AND DECORATE THE PROPERTY INCLUDING 103000 IN ANTIQUES AND BUILTINS ASSUMING THAT THE FUNDS WOULD EASILY BE REGAINED WHEN IT CAME TIME TO SELL THE PROPERTY WAS SOLD LAST YEAR FOR 591000 UNION DOCUMENTS SHOW MS DEQUATRO IN 1987 RESIGNED FROM HER SECRETARY'S POST AT THE UNION WITH A BACK INJURY BECOMING THE FIRST BENEFICIARY OF A GENEROUS DISABILITY PROGRAM PUSHED BY MR CARLOUGH AND ADOPTED BY THE BOARD IN 1986 THE YEAR SHE RETIRED SHE WAS HIRED BY THE UNION AS A GENERAL ADVISOR AND CONSULTANT ON ALL MATTERS ASSIGNED BY THE GENERAL PRESIDENT AND BOARD ACCORDING TO HER CONTRACT WITH THE UNION IN ADDITION SHE SIGNED ON AS A CONSULTANT AND ACCOUNT EXECUTIVE WITH THE KAMBER GROUP A WASHINGTONBASED UNION PUBLICRELATIONS FIRM THAT HANDLED PUBLICATIONS AND OTHER PUBLICITY FOR THE SHEETMETAL WORKERS TWO YEARS LATER SHE BECAME INTERIOR DESIGNER OF THE GREAT FALLS MANSION WITH A 300000 DECORATING BUDGET SO WHILE SHE WAS COLLECTING ABOUT 50000 A YEAR FOR A DISABILITY TO HER BACK MS DEQUATRO ALSO EARNED CONSULTING FEES FROM BOTH THE UNION AND THE KAMBER GROUP OVER THE NEXT FIVE YEARS UNION DOCUMENTS SHOW SHE EARNED ABOUT 1 MILLION ALLOWING HER TO BUY A MINK COAT AND A JAGUAR UNION OFFICIALS SAY WHILE THEY KNEW OF MS DEQUATRO'S 300000 BUDGET TO DECORATE THE MANSION THEY WEREN'T AWARE THAT SHE ALSO HAD BORROWED 12000 FROM THE UNION TO PAY HER TAXES MS DEQUATRO IN AN INTERVIEW YESTERDAY SAID SO MANY THINGS ARE TAKEN OUT OF CONTEXT ARE MISCONSTRUED OR PAINTED TO MAKE ME LOOK LIKE A TOTALLY DIFFERENT PERSON THAN I AM SHE ADDED THAT IT PAINTS ME AND MR CARLOUGH IN A TOTALLY DIFFERENT LIGHT THAN WE REALLY ARE I AM A VERY GRATEFUL RECOVERING ALCOHOLIC AND ADDICT MAYBE ONE DAY EVERYTHING WILL COME OUT SHE HASN'T YET REPAID THE MONEY MR MOORE THE UNION PRESIDENT SAYS DURING THE LATE 1980S AND INTO THE EARLY 1990S MR CARLOUGH BILLED THE UNION FOR EXPENSES RANGING FROM DRYCLEANING BILLS TO TOILETRIES ACCORDING TO DOCUMENTS GENERATED BY UNION EXECUTIVES AND INTERVIEWS WITH CURRENT AND FORMER OFFICIALS HE THREW A PARTY ON THE UNION'S TAB FOR A HOUSEKEEPER WHEN SHE BECAME A US CITIZEN HE SPENT MORE THAN 8000 OF UNION FUNDS ON A NEW YEAR'S EVE TRIP TO NEW YORK IN 1987 CULMINATING IN A 300 NIGHT AT REGINE'S A HIGHCLASS DISCO STAFFERS WERE USED TO MOVE MS DEQUATRO'S FURNITURE FROM VIRGINIA TO NEW BERN NC WHERE SHE NOW LIVES ACCORDING TO TOP UNION OFFICERS IN 1991 MORE THAN A QUARTER OF TRIPS ON THE UNION PLANE STOPPED IN NEW BERN TO PICK HER UP DROP HER OFF OR HAVE MR CARLOUGH MEET WITH HIS CONSULTANT THE SPENDING ETHOS PERMEATED THE UNION STAFF MEMBERS ATTENDING THINK TANKS HELD EACH JANUARY IN SUCH SPOTS AS ACAPULCO HONOLULU AND LISBON WERE PROVIDED WITH CHECKS FOR 500 OR MORE AS WALKINGAROUND MONEY IN ADDITION TO LAVISH HOTEL ROOMS AND FIRSTCLASS MEALS AT THE JANUARY 1990 EVENT IN LISBON MS DEQUATRO WAS FLOWN TO LONDON ON THE CONCORDE WHERE SHE WAS PICKED UP BY THE UNION JET AND BROUGHT TO PORTUGAL FOR THE LAST DAY OF THE THINK TANK ACCORDING TO UNION OFFICIALS AND THE INTERNAL UNION CHARGES MR CARLOUGH'S LAWYER CONTENDS THAT THE FORMER UNION BOSS DID NOTHING FOR PERSONAL GAIN BUT INSTEAD PURCHASED SUCH ITEMS AS THE CONFERENCE CENTER AND AIRPLANE FOR THE GOOD OF THE UNION THIS WASN'T PERSONAL OPULENCE BUT DREAMS FOR A MORE POWERFUL SHEETMETAL UNION SAYS THE LAWYER HOWARD GUTMAN IN ADDITION HE ARGUES THAT THE SYSTEM SET UP FOR PAYING CREDITCARD CHARGES AND OTHER EXPENSES WHERE SECRETARIES AND THE COMPTROLLER WOULD PAY ALL BILLS FROM UNION AND MR CARLOUGH'S PERSONAL ACCOUNTS WORKED 95 OF THE TIME MOREOVER MR GUTMAN SAYS AS HIS CLIENT TOLD THE ORLANDO MEETING THE BOARD APPROVED ALL MAJOR SPENDING AND MUST SHOULDER BLAME BUT TO THIS DAY MR CARLOUGH'S UNRESTRAINED SPENDING OF SHEETMETALWORKER MONEY RANKLES SOME OF HIS COLLEAGUES HE DIDN'T EMBEZZLE 10 MILLION SO THE GLAMOUR ISN'T THERE SAYS ALFRED TED ZLOTOPOLSKI THE VICE PRESIDENT WHO BROUGHT THE CHARGES THAT LED TO MR CARLOUGH'S DOWNFALL BUT JUST THE SAME HE MISUSED UNION FUNDS IT ALL BEGAN TO UNRAVEL IN 1991 WHEN A FORMER UNION PENSIONFUND OFFICIAL NAMED RAY TRUSSELL APPROACHED THE US ATTORNEY'S OFFICE IN NORTHERN VIRGINIA WITH QUESTIONS OF FIDUCIARY MISCONDUCT CENTERING ON MS DEQUATRO'S DISABILITY PAYMENTS AND SPENDING ON THE GREAT FALLS CONFERENCE CENTER THE UNION ASKED ITS LAWYER MR HUGE TO REVIEW WHAT WAS HAPPENING IN THE INVESTIGATION AND REPORT BACK TO A NEWLY CREATED BOARD SUBCOMMITTEE THAT EXCLUDED MR CARLOUGH THE LAWYER'S FIRST REPORT TO THE SUBCOMMITTEE WAS IN TYPICAL LAWYERESE DUBBED INTERIM REPORT NO 1 BUT BOARD OFFICIALS WOULD COME TO KNOW IT AND ITS SUCCESSOR REPORTS AS THE BLACK BOOK BY NOW THE BOARD WAS ACTING INDEPENDENTLY OF MR CARLOUGH WHO WAS HEEDING HIS LAWYER'S ADVICE TO STEER CLEAR OF THE OTHER UNION OFFICIALS AS 1992 ROLLED ON MR LEARNED THE ASSISTANT US ATTORNEY INFORMED THE UNION THAT HIS OFFICE DIDN'T HAVE PROBLEMS WITH THE WAY MONIES WERE BEING SPENT IN SOME AREAS ACCORDING TO PEOPLE FAMILIAR WITH THOSE CONVERSATIONS THE PLANE FOR EXAMPLE WAS LEGALLY ACCOUNTED FOR WITH MR CARLOUGH RECEIVING THE VALUE OF PERSONAL TRIPS AS INCOME AND THEN PAYING TAX ON THE RESULTING IMPUTED INCOME BUT AS FEDERAL PROSECUTORS BACKED AWAY UNION OFFICIALS DREW CLOSER THEY HIRED AN OUTSIDE AUDITOR TO EXAMINE DETAILS OF MR CARLOUGH'S AND MS DEQUATRO'S SPENDING MR CARLOUGH'S UNION CREDIT CARD OFTEN POPPED UP IN PLACES THAT CLEARLY APPEARED PERSONAL A DERMATOLOGIST A DINNER IN NEW BERN NC A CHARGE FOR MORE THAN 3000 AT A HOTEL AND RESTAURANT IN QUEBEC CITY WHEN MR CARLOUGH APPARENTLY WAS VACATIONING THERE A 3535 CHARGE AT CLARIDGE'S HOTEL IN LONDON FOR A STOPOVER ON A RETURN FROM A CONFERENCE FACING A 2 MILLION ANNUAL DEFICIT FOR 1993 THE UNION COUNCIL TRIED TO REIN IN MR CARLOUGH'S SPENDING EARLY THIS YEAR HE FUMED THIS HAS NEVER BEEN A UNION OF BEAN COUNTERS AND NEVER WILL BE A UNION OF BEAN COUNTERS BUT MR ZLOTOPOLSKI MAINTAINS NOW YOU HAVE TO COUNT THE BEANS THEY AREN'T YOUR BEANS THEY'RE THE MEMBERSHIP'S BEANS RELATIONS BETWEEN MR CARLOUGH AND THE UNION'S BOARD WERE TENSE THE BOARD SET A LIMIT OF 60000 A YEAR FOR RENT AND EXPENSES AT A NEW HOUSE IN GEORGETOWN WHERE MR CARLOUGH WAS NOW LIVING BUT THE UNION PRESIDENT WHO EARNED A BASE SALARY OF 165000 A YEAR SOUGHT EXTRA MONEY I SAID ED YOU'RE A GODDAMN PIG GO IN YOUR OWN POCKET FOR A CHANGE' MR MOORE RECALLS IN THE SPRING OF THIS YEAR MR HUGE PRESENTED THE THIRD AND FINAL VERSION OF THE BLACK BOOK AND INFORMED THE SUBCOMMITTEE AND ENTIRE COUNCIL THAT MR LEARNED'S FEDERAL PROBE WAS OVER GOVERNMENT QUERIES INTO ALLEGED SPENDING ABUSES AND ILLEGAL USE OF UNION FUNDS HAD LED NOWHERE MR HUGE REPORTED THAT INFURIATED SOME UNION COUNCIL MEMBERS FINDING NOTHING ILLEGAL MEANT OUR GOVERNMENT IS EITHER INEPT OR STUPID OR BLIND MR ZLOTOPOLSKI SAID AT THE AUGUST DISNEY WORLD MEETING I'LL GO TO MY GRAVE BELIEVING THAT WHAT ED CARLOUGH HAD DONE WAS WRONG AND HAD HARMED THE UNION HE ADDS IN AN INTERVIEW SO ARMED WITH THE OUTSIDE AUDITOR'S REPORT MR ZLOTOPOLSKI IN JUNE FILED INTERNAL UNION CHARGES AGAINST MR CARLOUGH SEEKING HIS REMOVAL UNDER THE ORGANIZATION'S CONSTITUTION FOR WRONGFUL AND EXCESSIVE SPENDING BY THE PRESIDENT AND MS DEQUATRO AT THE GEORGETOWN HOUSE AND ON PERSONAL USE OF THE AIRPLANE THE NEXT MONTH AROUND RECTANGULAR TABLES IN A CONFERENCE ROOM IN THE WESTIN HOTEL IN WASHINGTON MR CARLOUGH SAT ACCUSED FOR FURTHER AMMUNITION MR ZLOTOPOLSKI HELD BUT DIDN'T BRING AN ADDITIONAL 82 CHARGES FOCUSING MOSTLY ON MR CARLOUGH'S UNAUTHORIZED OR QUESTIONABLE USE OF THE UNION CREDIT CARD WITH THE REST OF THE EXECUTIVE COUNCIL STANDING AS JURY AND A LEGION OF LAWYERS SITTING IN THE HALLWAY THE PANEL FOR 2 1/2 DAYS GRILLED MR CARLOUGH ON HIS SPENDING WHEN THE CHARGES HAD BEEN HEARD AND RESPONDED TO CECIL CLAY THE UNION'S RETIRED SECRETARYTREASURER WHO WAS ACTING AS MR CARLOUGH'S COUNSEL HEADED FOR HIS HOME IN SOUTH CAROLINA IT DIDN'T OCCUR TO ME HE MIGHT RESIGN MR CLAY RECALLS BUT THE BOARD PREPARED TO REMOVE MR CARLOUGH FROM THE PRESIDENCY SENT HOUSE COUNSEL JUDY RIVLIN WITH HER WEEKOLD BABY TO MR CARLOUGH'S ROOM TO OFFER HIM AN OPPORTUNITY TO QUIT THE UNION WOULD CITE HEALTH REASONS THEY SAID AND THEN KEEP THINGS QUIET NEGOTIATIONS OVER THE TERMS CONTINUED FOR SEVERAL HOURS AND AROUND MIDNIGHT MR CARLOUGH STEPPED DOWN AS PRESIDENT OF THE UNION HE HAD DOMINATED FOR MORE THAN TWO DECADES THESE DAYS MR CARLOUGH LIVES IN A ONEBEDROOM APARTMENT IN DOWNTOWN WASHINGTON HIS LAWYER WANTS HIM TO SUE THE UNION FOR MORE THAN 300000 IN PENSION MONEY IT IS HOLDING UP PENDING FURTHER INVESTIGATION THE NEW UNION LEADERSHIP ONCE TERRIFIED THAT FEDERAL INVESTIGATORS WOULD FIND SUCH MANAGEMENT FLAWS THAT THEY WOULD DRAG THE UNION INTO TRUSTEESHIP IS TAKING STEPS TO CUT SPENDING THE AIRPLANE SITS IN A DELAWARE HANGAR WAITING FOR SALE THE TWO PILOTS HAVE BEEN LET GO THE GREAT FALLS PROPERTY IS ON THE MARKET FOR 25 MILLION A FINANCE COMMITTEE HAS BEEN CREATED TO PROVIDE A CHECK ON THE PRESIDENT AND ALL SPENDING OVER 10000 MUST BE APPROVED BY THE COUNCIL POSSIBLY THE MAN WHO IS TAKING IT THE HARDEST ISN'T MR CARLOUGH BUT MICHAEL SULLIVAN A CARLOUGH PROTEGE WHO BECAME A LEADER OF THE OVERTHROW MR SULLIVAN A VICE PRESIDENT OF THE UNION CAN HARDLY TALK ABOUT THE MATTER WITHOUT TEARS WELLING UP IN HIS EYES AT THE AUGUST MEETING IN DISNEY WORLD IT WAS MR SULLIVAN WHO GENTLY PUSHED MR MOORE ASIDE TO CALM MATTERS DOWN AFTER THE NEW PRESIDENT CURSED THE OLD HIS VOICE CRACKING HE SORROWFULLY TOLD HIS OLD CHIEF MR CARLOUGH LET ME TELL YOU YOU WERE MY HERO 9312010166 931201 WHO'S NEWS STEIN ROE & FARNHAM INC STEIN ROE & FARNHAM INC CHICAGO SHARY L RISTING 35 YEARS OLD FORMERLY VICE PRESIDENT AND REGIONAL DIRECTOR FOR CITIBANK'S RETAIL BUSINESS IN SEVERAL PARTS OF THE COUNTRY WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT AND DIRECTOR OF MARKETING FOR THE INVESTMENTMANAGEMENT FIRM A UNIT OF LIBERTY FINANCIAL COS 9312010165 931201 ECONOMY RUSSIA MAY CUT OIL EXPORTS BY 75 PROPOSAL SPARKS SLIGHT RISE IN PRICES BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL RUSSIA ONE OF THE WORLD'S LARGEST OIL PRODUCERS MAY SLASH ITS CRUDEOIL EXPORTS BY AS MUCH AS 75 THIS MONTH BECAUSE FRIGID WEATHER HAS INCREASED DEMAND WITHIN THE REPUBLICS OF THE FORMER SOVIET UNION THE CUT IF INSTITUTED COULD SLOW THE PRECIPITOUS OILPRICE DECLINE THAT FOLLOWED THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES' DECISION LAST WEEK TO LEAVE ITS PRODUCTION CEILING UNTOUCHED BUT MARKET PARTICIPANTS WERE SKEPTICAL ABOUT WHETHER IT WOULD OCCUR RUSSIAN ENERGY MINISTER YURI SHAFFRANIK YESTERDAY CALLED THE CUT A ONETIME EMERGENCY MEASURE THAT WOULD PULL AT LEAST 12 MILLION BARRELS A DAY OF RUSSIAN CRUDE OFF THE MARKET THAT'S MORE THAN TWICE THE REDUCTION NEEDED TO PROP UP OIL PRICES OIL ANALYSTS SAY THE REPUBLIC EXPORTS ABOUT 17 MILLION BARRELS A DAY IN RESPONSE OILFUTURES PRICES WHICH HAD FALLEN TO FIVEYEAR LOWS ROSE SLIGHTLY YESTERDAY CRUDE OIL FOR JANUARY DELIVERY SETTLED AT 1543 A BARREL UP 12 CENTS BUT MARKET PARTICIPANTS ARE CIRCUMSPECT ABOUT WHETHER MR SHAFFRANIK'S PRONOUNCEMENT WILL BECOME AN ACTUALITY INDEED HIS REMARKS MAY BE MORE POLITICAL THAN REAL IN LIGHT OF THE NATIONAL ELECTIONS LOOMING THIS MONTH SAID JOSEPH STANISLAW WITH CAMBRIDGE ENERGY RESEARCH ASSOCIATES IN PARIS HE SAID RUSSIANS ARE SEEKING REASSURANCES ESPECIALLY IN LIGHT OF SEVERE WEATHER CONDITIONS TEMPERATURES IN RECENT WEEKS CONSISTENTLY PLUNGED BELOW ZERO FAHRENHEIT MAKING IT THE COLDEST NOVEMBER IN 50 YEARS BUT ECONOMISTS ANTICIPATE RUSSIA CRUDE EXPORTS TO WESTERN ECONOMIES TO GROW AS DEMAND IN RUSSIA AND SURROUNDING REPUBLICS DECLINES THE NEED TO RAISE HARD CURRENCY OR DOLLARS ALSO HAS CAUSED A DROPOFF IN SALES TO SOME FORMER EAST BLOC NATIONS FOR INSTANCE BULGARIA AND ROMANIA COULDN'T BUY OIL IN GREAT QUANTITIES THIS YEAR BECAUSE THEY LACK HARD CURRENCY OIL EXPERTS SAY OIL IN THE INTERNATIONAL MARKET IS PURCHASED IN US DOLLARS RUSSIAN EXPORTS TO DESTINATIONS OUTSIDE THE REPUBLICS AND OTHER FORMER EAST BLOC NATIONS HAVE RISEN MORE SHARPLY THAN EXPECTED THIS YEAR THAT HAS EXACERBATED A GLUTTED OIL MARKET AND CONTRIBUTED TO THE DROP IN PRICES THE INTERNATIONAL ENERGY AGENCY SHOWS OIL EXPORTS FROM THE FORMER SOVIET UNION HAVE INCREASED TO 22 MILLION BARRELS A DAY THIS YEAR UP 100000 BARRELS EVEN THOUGH CRUDE PRODUCTION HAS FALLEN TO 78 MILLION BARRELS A DAY THIS YEAR FROM NINE MILLION A DAY PRODUCTION HAS BEEN FALLING LIKE A ROCK SAYS KENNETH HALEY AN ECONOMIST FOR CHEVRON CORP MANY OF THE REPUBLICS' INDUSTRIES WHICH HAD BEEN CHUGGING ALONG UNDER THE STATE'S TUTELAGE BEFORE THE SOVIET UNION'S COLLAPSE ARE GRINDING TO A HALT BECAUSE THEY CAN'T COMPETE INDUSTRIES ACROSS THE BOARD STEEL CEMENT COAL AUTO AND THE LIKE HAVE BEEN SHRINKING AS INEFFICIENCIES HAVE BECOME APPARENT AND CONSUMER PREFERENCE HAS COME INTO PLAY ECON INC A WASHINGTON DC CONSULTING FIRM SPECIALIZING IN THE ECONOMIES OF THE FORMER SOVIET UNION SAID THAT OVER THE LAST YEAR OIL CONSUMPTION IN RUSSIA MAY HAVE FALLEN BY AS MUCH AS 23 AS OPERATIONS ARE EITHER SHUT DOWN OR REBUILT THE NEED FOR ENERGY TO FUEL THEM HAS DIMINISHED IT'S TWICE AS BAD AS THE US DEPRESSION OF THE 1930S SAID LAWRENCE GOLDSTEIN PRESIDENT OF PETROLEUM INDUSTRY RESEARCH FOUNDATION THE INTERNATIONAL ENERGY AGENCY REPORTS THAT OIL EXPORTS MOSTLY TO EUROPE FROM THE FORMER SOVIET UNION GREW THIS YEAR BY AT LEAST 16 TO ABOUT 11 MILLION BARRELS A DAY FROM LAST YEAR WHILE REFINERY USAGE A MEASURE OF INTERNAL CONSUMPTION IN THE REPUBLICS FELL 16 BUT THE AMOUNT OF OIL EXPORTED FROM THE REPUBLICS MAY HAVE BEEN HIGHER DATA ESPECIALLY INFORMATION GLEANED FROM RUSSIA LAST YEAR WAS A MESS ADMITS ONE IEA OFFICIAL WHO SAID THE AGENCY'S NUMBERS ARE JUST REASONABLE ESTIMATES IT'S A REAL CRAPSHOOT AGREES BERNIE PICCHI OIL ANALYST FOR KIDDER PEABODY WHO CLOSELY FOLLOWS THE RUSSIAN OIL INDUSTRY 9312010164 931201 FARMLAND INDUSTRIES SIGNS PACT KANSAS CITY MO FARMLAND INDUSTRIES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY TRADIGRAIN FROM BRITISH PETROLEUM BASED IN LONDON FARMLAND A BIG FARMEROWNED COOPERATIVE DIDN'T DISCLOSE TERMS OF THE PURCHASE WHICH IT EXPECTS TO CLOSE THIS MONTH TRADIGRAIN IS A GRAIN TRADING GROUP BASED IN GENEVA THAT GENERATES ANNUAL SALES OF ROUGHLY 1 BILLION FARMLAND SAID IT PLANS TO RETAIN ALL OF THE 100 EMPLOYEES OF TRADIGRAIN 9312010163 931201 TEXAS JOURNAL DESPITE NAFTA SHRIMPERS WON'T CAST ASIDE DISPUTES BY ROBERT TOMSHO THE NORTH AMERICAN FREE TRADE AGREEMENT WILL LOWER A HOST OF TRADE BARRIERS BUT THE PACT PROBABLY WON'T DO MUCH TO END TENSIONS BETWEEN TEXAN AND MEXICAN SHRIMPERS IN THE GULF OF MEXICO FOR ONE THING THE TREATY CONTAINS NO PROVISION FOR RECIPROCAL FISHING RIGHTS THAT MIGHT HAVE HEADED OFF INCIDENTS LIKE THE ATTEMPTED SEIZURE OF THREE TEXAS SHRIMP BOATS IN JULY BY A MEXICAN NAVY PATROL BOAT OFF PORT ISABEL TEXAS THE COAST GUARD WHICH INTERVENED IS INVESTIGATING BUT THEN TEXAS SHRIMPERS AREN'T ALL THAT EAGER FOR OPEN FISHING SINCE NAFTA ALSO APPARENTLY WON'T RESOLVE CONFLICT OVER THE USE OF TURTLEEXCLUDER DEVICES IN FISHING NETS TO PROTECT CERTAIN RARE TURTLES TEXAS SHRIMPERS SAY THE SOCALLED TEDS WHOSE USE IS STRICTLY ENFORCED BY THE COAST GUARD BUT NOT BY MEXICAN AUTHORITIES REDUCE THEIR CATCHES AS MUCH AS 15 TO AVOID A BAN ON SHRIMP EXPORTS TO THE US MEXICO HAS AGREED TO PHASE IN TEDS BUT TEXAS SHRIMPERS SAY THAT ISN'T ENOUGH THEY WANT TO KNOW WHETHER ENFORCEMENT WILL CONSIST OF DOCKSIDE INSPECTIONS OR ATSEA PATROLLING A BETTER INDICATOR OF WHETHER THE DEVICES ARE BEING USED WE CAN'T COMPETE IF THEY DON'T HAVE ATSEA INSPECTIONS SAYS WILMA ANDERSON EXECUTIVE DIRECTOR OF THE TEXAS SHRIMP ASSOCIATION 9312010162 931201 FOREST OIL TO BUY ENERGY ASSETS DENVER FOREST OIL CORP SAID IT AGREED TO BUY STAKES IN FIVE GULF OF MEXICO PROPERTIES FOR 247 MILLION FOREST IS BUYING THE INTERESTS WHICH INCLUDE 193 BILLION CUBIC FEET OF NATURAL GAS FROM SANDEFER OFFSHORE CO A CLOSELY HELD HOUSTON COMPANY THE BLOCKS ARE LOCATED OFFSHORE LOUISIANA SAID FOREST AN OIL AND NATURALGAS CONCERN THE COMPANY EXPECTS TO COMPLETE THE TRANSACTION BY MIDDECEMBER 9312010161 931201 MAI SYSTEMS IS REORGANIZED IRVINE CALIF MAI SYSTEMS CORP SAID IT HAS EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS UNDER A REORGANIZATION PLAN CONFIRMED BY A US BANKRUPTCY COURT THE COMPUTERSERVICES COMPANY FILED FOR PROTECTION AGAINST CREDITORS IN APRIL UNDER A PLAN APPROVED BY VOTING CREDITORS AND A FEDERAL COURT IN WILMINGTON DEL UNSECURED CREDITORS WILL RECEIVE STOCK IN THE REVAMPED COMPANY THOSE WHO HELD COMMON AND PREFERRED SHARES IN THE COMPANY PRIOR TO THE CHAPTER 11 FILING WON'T RECEIVE ANY SHARES IN THE REORGANIZED COMPANY 9312010160 931201 WHO'S NEWS PEPSICO INC PEPSICO INC PURCHASE NY RON MCEACHERN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF PEPSICOLA CANADA LTD A TORONTO SOFTDRINK UNIT OF PEPSICO MR MCEACHERN 40 YEARS OLD WAS PREVIOUSLY VICE PRESIDENT OF SALES OPERATIONS HE SUCCEEDS WAYNE MAILLOUX 45 WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF PEPSICO UNIT PEPSICOLA EUROPEAN BEVERAGE GROUP PEPSICO IS A SOFTDRINK SNACKFOOD AND FOODSERVICE COMPANY 9312010159 931201 WHO'S NEWS CHICAGO & NORTH WESTERN HOLDINGS CORP CHICAGO & NORTH WESTERN HOLDINGS CORP CHICAGO JAMES J MOSSMAN GENERAL PARTNER OF BLACKSTONE GROUP HAROLD A POLING FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FORD MOTOR CO AND SAMUEL K SKINNER PRESIDENT OF COMMONWEALTH EDISON CO WERE NAMED DIRECTORS OF THIS HOLDING COMPANY FOR CHICAGO & NORTH WESTERN TRANSPORTATION CO A RAILROAD FREIGHTHAULER INCREASING BOARD MEMBERSHIP TO SEVEN 9312010158 931201 LETTERS TO THE EDITOR I'M EATING WHAT IN REGARD TO YOUR NOV 11 PAGEONE ARTICLE FRENCH INSIDERS AREN'T SO KEEN ABOUT EATING INNARDS I CAN IDENTIFY WITH THE EXCLAMATION OF JULIEN THE OFFALLOVING COMIC BOOK CHARACTER YOU DON'T FORGET A MEAL LIKE THAT IN 1958 AS A 10YEAROLD ON FAMILY VACATION WE HAD A MEAL OF SWEETBREADS IN THE FRENCH ALPS IT WAS NOT THE CAKES AND PASTRIES WE CHILDREN EXPECTED AND I WILL NEVER FORGET THE LOOK OF HORROR AND REVULSION ON MY OLDER BROTHER'S FACE AS HE TOOK HIS FIRST AND LAST BITE 9312010157 931201 WHO'S NEWS INTEGRATED WASTE SERVICES INC INTEGRATED WASTE SERVICES INC BUFFALO NY EDWARD J RUTKOWSKI 52 YEARS OLD PRESIDENT OF PHOENIX ENERGY CORP A MAKER OF RECHARGEABLE BATTERIES ALSO BASED HERE WAS NAMED A DIRECTOR OF THIS SOLIDWASTEMANAGEMENT CONCERN HIS APPOINTMENT INCREASES THE BOARD'S SIZE TO SIX MEMBERS MR RUTKOWSKI WAS A VICE PRESIDENT OF INTEGRATED WASTE SERVICES FROM 1990 THROUGH NOV 17 WHEN HE LEFT TO JOIN PHOENIX ENERGY 9312010156 931201 BUSINESS BRIEF US OFFICIALS LAUNCH CRIMINAL INVESTIGATION OF POTASH PRODUCERS CHICAGO THE JUSTICE DEPARTMENT HAS BEGUN A CRIMINAL ANTITRUST INVESTIGATION TO DETERMINE IF NORTH AMERICAN POTASH PRODUCERS FIXED PRICES TWO MAJOR POTASH MAKERS IMC FERTILIZER GROUP INC AND THE KALIUM CHEMICALS LTD SUBSIDIARY OF THE VIGORO CORP SAID THEY RECEIVED FEDERAL GRANDJURY SUBPOENAS FROM THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION THE SUBPOENAS REQUESTED DOCUMENTS RELATING TO THE COMPANIES' POTASH BUSINESS IN THE US AND CANADA KALIUM CHEMICALS SAID IT BELIEVED OTHER POTASH PRODUCERS RECEIVED SIMILAR SUBPOENAS POTASH A BASIC CROP NUTRIENT ACCOUNTS FOR ABOUT 25 OF THE 8 BILLIONAYEAR US FERTILIZER INDUSTRY SAID A SPOKESMAN FOR THE FERTILIZER INSTITUTE A TRADE GROUP BOTH IMC FERTILIZER OF NORTHBROOK ILL AND CHICAGOBASED KALIUM CHEMICALS SAID THEY WILL COOPERATE WITH THE FEDERAL INQUIRY WHICH IS PART OF THE ANTITRUST DIVISION'S INVESTIGATION OF ALLEGATIONS MADE IN PENDING CIVIL COMPLAINTS SEVERAL CLASSACTION CIVIL LAWSUITS FILED IN APRIL CLAIM ON BEHALF OF AMERICAN BUYERS OF POTASH THAT BUYERS' COSTS HAVE RISEN AS A RESULT OF PRICE FIXING BY PRODUCERS SINCE 1987 THOSE SUITS WERE CONSOLIDATED IN FEDERAL DISTRICT COURT IN MINNESOTA AND DEFENDANTS COMPRISE SUBSTANTIALLY ALL OF THE POTASH PRODUCERS IN THE US AND CANADA IMC FERTILIZER AND KALIUM CHEMICALS DENIED VIOLATING ANY ANTITRUST LAWS 9312010155 931201 WHO'S NEWS VF CORP VF CORP WYOMISSING PA ELLEN L ROHDE 42 YEARS OLD WAS NAMED PRESIDENT OF THE APPAREL COMPANY'S MARITHE & FRANCOIS GIRBAUD DIVISION SUCCEEDING BOB STEC WHO RECENTLY LEFT THE COMPANY GARY F SIMMONS 38 SUCCEEDS MS ROHDE AS PRESIDENT OF VF'S HEALTHTEX DIVISION MR SIMMONS WAS FORMERLY VICE PRESIDENT MARKETING OF HEALTHTEX MARITHE'S SALES ARE EXPECTED TO TOTAL MORE THAN 100 MILLION IN 1993 AND HEALTHTEX'S WILL BE ABOUT 200 MILLION THE COMPANY SAID 9312010154 931201 WHO'S NEWS RJR NABISCO HOLDINGS CORP RJR NABISCO HOLDINGS CORP NEW YORK THIS TOBACCO AND FOOD COMPANY'S NABISCO INTERNATIONAL INC UNIT NAMED ANTONIO GARCIA DE BLAS 45 YEARS OLD TO THE NEW POSITION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ROYAL BRANDS A COMPANY OWNED BY NABISCO INTERNATIONAL AND TABACALERA SA OF SPAIN HE WAS PREVIOUSLY DIRECTOR OF TABACALERA'S FOOD DIVISION AND PRESIDENT OF ROYAL BRANDS' CARNES Y CONSERVAS ESPANOLAS UNIT 9312010153 931201 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9312010151 931201 BUSINESS BRIEF KATY'S CONTROLLING FAMILY DEVELOPS RIFT IN ITS BUYOUT PLAN AS RIVAL BID EMERGES ELGIN ILL KATY INDUSTRIES INC'S CONTROLLING FAMILY WHICH IS SEEKING TO TAKE THE COMPANY PRIVATE AT 2575 A SHARE SHOWED SIGNS OF A RIFT A DEVELOPMENT LIKELY TO IMPROVE THE CHANCES FOR OUTSIDE SUITORS MEANWHILE A RIVAL BID OF 28 A SHARE SURFACED YESTERDAY FROM PENSLER CAPITAL CORP WHICH PARTICIPATED IN A PREVIOUS BID FOR THE COMPANY THE HEIRS OF KATY FOUNDER WALLACE CARROLL HOLD A 52 STAKE AND THE FAMILY HAS BEEN ATTEMPTING SINCE MARCH TO BUY THE PORTION IT DOESN'T CONTROL FOR 2575 A SHARE STOCKHOLDERS ARE SCHEDULED TO VOTE ON THAT MEASURE AT AN OFTDEFERRED MEETING NOW SET FOR DEC 20 THE MANUFACTURER HAS RECEIVED OVERTURES FROM OTHERS INTERESTED IN ACQUIRING KATY BUT DESPITE UNHAPPINESS ON THE PART OF SOME MINORITY HOLDERS THE CARROLL FAMILY'S BID UNTIL NOW HAS SEEMED LIKELY TO PREVAIL THE MEASURE REQUIRES APPROVAL FROM ONLY A SIMPLE MAJORITY BUT KATY DISCLOSED YESTERDAY THAT BARRY J CARROLL A DIRECTOR HAD INFORMED CHAIRMAN JACOB SALIBA THAT HE'S UNABLE TO AGREE TO A FURTHER EXTENSION OF A PARTICIPATION AGREEMENT THAT HAS PREVIOUSLY BOUND ALL THE FAMILY MEMBERS INTO A UNIFIED BLOC MR CARROLL THROUGH VARIOUS TRUSTS CONTROLS ABOUT 372000 SHARES OR AN INDICATED 41 OF KATY ACCORDING TO RECENT REGULATORY FILINGS IN HIS LETTER TO THE CHAIRMAN HE SAID HE INTENDS TO SELL KATY SHARES THOUGH HE DIDN'T SAY TO WHOM OR WHEN THE SALE MIGHT OCCUR MR CARROLL COULDN'T BE REACHED FOR ELABORATION KATY SAID SOME OTHER MEMBERS OF THE CARROLL FAMILY HAVE ADVISED BARRY CARROLL THAT HIS ACTIONS MAY CONSTITUTE A BREACH OF VARIOUS FAMILY AGREEMENTS TO WHICH HE IS A PARTY THE REMAINING MEMBERS ARE ASSESSING THEIR OPTIONS THE COMPANY SAID IN SEPTEMBER KATY RECEIVED A BID OF 29 A SHARE OR 262 MILLION FROM ROSECLIFF PENSLER PARTNERS LP AN ENTITY FORMED BY THE COMBINATION OF ROSECLIFF INC AND PENSLER THE ROSECLIFFPENSLER PROPOSAL WHICH MET RESISTANCE FROM THE FAMILY IS NO LONGER ON THE TABLE THE PRINCIPALS SPLIT IN MIDNOVEMBER ROSECLIFF HEADED BY FORMER ACADIA PARTNERS EXECUTIVE PETER T JOSEPH HAS SAID IT'S CONSIDERING AN INDEPENDENT BID AT A PRICE SUBSTANTIALLY HIGHER THAN THE PENDING CARROLL FAMILY OFFER SUBJECT TO CERTAIN CONTINGENCIES EARLY YESTERDAY PENSLER WHICH IS LED BY FORMER DILLON READ & CO MANAGING DIRECTOR SANFORD N PENSLER MADE PUBLIC ITS BID FOR KATY WHICH IT IS MAKING IN CONJUNCTION WITH STEINHARDT ENTERPRISES INC THAT PROPOSAL WILL EXPIRE DEC 6 THE BIDDERS SAID KATY SAID IT IS REVIEWING THE MATTER AFTER THE ANNOUNCEMENT KATY SHARES ROSE 875 CENTS TO 2650 WELL BELOW THE BID PRICE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9312010150 931201 LEHMAN AGREES TO PAY 30 MILLION TO SETTLE SUIT OVER PARTNERSHIP NEW YORK LEHMAN BROTHERS INC HAS AGREED TO PAY 30 MILLION TO SETTLE A CLASSACTION LAWSUIT STEMMING FROM A FAILED 1982 REALESTATE LIMITED PARTNERSHIP THE SETTLEMENT WHICH ALMOST FULLY REIMBURSES THE 200 INVESTORS IN THE PARTNERSHIP IS ONE OF THE LARGER SETTLEMENTS TO COME OUT OF A LONG STRING OF CLASSACTION SUITS AGAINST SECURITIES BROKERS BROUGHT BY INVESTORS IN 1980S PARTNERSHIPS THAT LATER WENT SOUR THE SETTLEMENT WAS APPROVED LATE MONDAY BY US DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS APPROXIMATELY 200 INVESTORS IN A 26 MILLION LIMITED PARTNERSHIP SOLD BY EF HUTTON INC IN 1982 WON THE MONEY FROM LEHMAN BROTHERS THE BROKERAGE UNIT OF AMERICAN EXPRESS CO INVESTORS ARE LIKELY TO RECOVER THEIR ENTIRE AFTERTAX INVESTMENT PLUS INTEREST ACCORDING TO AB CONANT JR A DALLAS ATTORNEY WHO REPRESENTS THE PLAINTIFFS THE MATTER IN QUESTION OCCURRED AT A PREDECESSOR FIRM MORE THAN A DECADE AGO A LEHMAN SPOKESMAN NOTED EF HUTTON WAS ACQUIRED BY SHEARSON LEHMAN BROTHERS INC IN 1988 IN JULY SHEARSON JOINED WITH SMITH BARNEY HARRIS UPHAM & CO A UNIT OF PRIMERICA CORP BUT BEFORE THE MERGER SET ASIDE AN UNDISCLOSED AMOUNT TO DEAL WITH SUITS RELATED TO HUTTON'S AND SHEARSON'S TROUBLED LIMITED PARTNERSHIPS THE FINANCIAL LIABILITY FOR THE PARTNERSHIPS REMAINED AT LEHMAN ALONG WITH THE RESERVES SET ASIDE TO PAY FOR THE PARTNERSHIPS THE MONEY HAD ALREADY BEEN SET ASIDE IN FULL AND THE SETTLEMENT WILL NOT HAVE AN IMPACT ON LEHMAN BROTHERS' EARNINGS THE SPOKESMAN SAID THE CLASSACTION SUIT CHARGED MATERIAL MISREPRESENTATIONS AND OMISSIONS REGARDING THE FINANCIAL CONDITION OF THE OWNER OF A SUGAR LAND TEXAS OFFICE BUILDING WHICH WAS PURCHASED BY THE PARTNERSHIP 9312010149 931201 RETAILING HARRODS GRANDEUR COMES AT GRAND COST BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FOR THE DISTINCTION OF BEING THE WORLD'S GREATEST DEPARTMENT STORE HARRODS FACES FEW RIVALS SHOPPERS RAVE ABOUT THE GRANDEUR OF THE HARRODS BUILDING ABOUT PRODUCTS NOT SEEN JUST ANYWHERE A RHINOCEROS DOLL FOR MORE THAN 3700 ABOUT HALLS FILLED WITH LIVE MUSIC AND ART ITS FINANCIAL PERFORMANCE ISN'T AS SPECTACULAR THAT'S BECAUSE THE 11 MILLION PEOPLE DRAWN BY HARRODS' SHOWMANSHIP EACH YEAR DON'T ALL SPEND MORE THAN LIKELY WE'LL WALK AWAY WITH NOTHING TODAY SAYS MARK LOVETT A WILTSHIRE BUSINESSMAN WAITING NEAR THE LADIES' ROOM FOR HIS WIFE HARRODS' SALES AND PROFITS HAVE TENDED TO RISE ONE YEAR ONLY TO FALL THE NEXT I THINK IT'S PROBABLY THE BEST STORE IN THE WORLD ASSERTS LONDON RETAIL ANALYST RICHARD HYMAN BUT ITS SALES PER SQUARE FOOT 40 LESS THAN COMPETITOR SELFRIDGES' IS A BIT DISAPPOINTING HE SAYS ANALYSTS SAY EXTRAORDINARY PRESENTATION CAN MAKE FOR MODEST RESULTS PROVIDING AN EXCEPTIONAL SHOPPING EXPERIENCE DOES HAVE A COST SAYS CHRISTOPHER DAWSON A LONDON ANALYST WITH MANAGEMENT HORIZONS IT'S A BALANCE THAT MANAGEMENT MUST STRIKE BETWEEN ATTRACTING PEOPLE TO THE STORE AND RUNNING A BUSINESS STRIKING THAT BALANCE IS A MATTER OF CONCERN JUST NOW FOR SOME US DEPARTMENT STORES RETAILERS SUCH AS FEDERATED DEPARTMENT STORES INC OWNER OF BLOOMINGDALE'S AND OTHER CHAINS ARE SPENDING HEAVILY ON IMPROVEMENTS THESE DAYS TRYING TO RECOVER FROM THE BUYOUTS LAST DECADE THAT LEFT THEM LADEN WITH DEBT AND TO STAND APART FROM DISCOUNTERS MIDRANGE RETAILERS SUCH AS JC PENNEY CO ARE AIMING FOR A MORE AFFLUENT MARKET HARRODS OWNER MOHAMED AL FAYED SAYS IT'S NONE TOO SOON RETAILING SHOULD BE EXCITING LIKE THEATER BUT WHAT THEY DO IN AMERICA IS JUST SELL MERCHANDISE HE SAYS BLOOMINGDALE'S HE ADDS IS LIKE A SUPERMARKET A COMPETITOR WOULD HAVE TROUBLE MIMICKING THE QUALITIES THAT HAVE MADE THIS STORE FAMOUS THE SIXSTORY EDWARDIAN PALACE ITS STATUS AS ONE OF THE CITY'S TOP TOURIST DESTINATIONS AND ITS LONG HISTORY AS A RETAILER TO CELEBRITIES HARRODS HOLDS ROYAL WARRANTS TO PROVIDE SUCH THINGS AS FASHIONS AND SADDLERY TO THE ROYAL FAMILY A CENTURY AND A HALF AFTER IT BEGAN AS A HIGHCLASS GROCERY HARRODS IS FAMOUS FOR BEING FAMOUS WHICH HELPS EXPLAIN WHY MR FAYED AND HIS BROTHERS BOUGHT IT IN 1985 TO OWN ANOTHER WORLDCLASS COMMERCIAL TREASURE THEY ALREADY OWNED THE RITZ HOTEL IN PARIS AN EGYPTIANBORN OIL AND SHIPPING MAGNATE WITH NO RETAIL EXPERIENCE MR AL FAYED HIRED AS A CONSULTANT STANLEY MARCUS FORMER CHAIRMAN OF DALLASBASED NEIMANMARCUS WHO HAD BEEN FAMOUS FOR UNUSUAL PRODUCTS HISANDHERS CAMELS AND FOR PLACING CUSTOMER INTERESTS AHEAD OF PROFITS HE TOLD MR AL FAYED GREAT REPUTATIONS NEED FEEDING MR AL FAYED PROCEEDED TO FEED 200 MILLION INTO HARRODS ABOUT 298 MILLION OR MORE THAN A THIRD THE AMOUNT THAT FEDERATED IS SPENDING TO RENOVATE SEVERAL ENTIRE CHAINS INCLUDING BLOOMINGDALE'S HARRODS HAD BEEN FITTED WITH NEW CARPETING ELEGANT DISPLAY TABLES AND BRASS FIXTURES THE BASEMENT AND TOP FLOOR UNTIL RECENTLY USED AS STORAGE AND OFFICE SPACE NOW HOUSE THE HARRODS BANK SPORTINGGOODS DEPARTMENT AND THE EGYPTIAN ROOM THROUGHOUT THE STORE ARE STATUETTES AND HISTORICAL ITEMS SUCH AS A PHARAOH'S HEAD BORROWED FROM THE BRITISH MUSEUM MR AL FAYED NEVER COUNTS COSTS SAYS HARRODS SPOKESMAN MICHAEL COLE THAT'S A GOOD THING BECAUSE THE RENOVATIONS DIDN'T BRING ABOUT ANY IMMEDIATE SALES BOOST FROM FISCAL 1989 THROUGH FISCAL 1992 SALES DROPPED NEARLY 5 AND WHILE HARRODS' UPANDDOWN RESULTS HAVE BEEN PARTLY ATTRIBUTABLE TO ACCOUNTING CHANGES AND DIVESTITURE OF DIVISIONS SUCH AS A CREDITCARD OPERATION TOOIDLE CASH REGISTERS HAVE BEEN A PROBLEM A 4 RISE LAST FISCAL YEAR BOOSTED SALES TO 305 MILLION 454 MILLION OPERATING PROFIT DURING THE LAST FISCAL YEAR ENDED JAN 30 ROSE 10 FROM THE YEAR EARLIER TO 322 MILLION BUT DIDN'T EXCEED SOME PREVIOUS YEARS BUT MR AL FAYED HEARTENED BY A 14 SALES INCREASE THROUGH THE FIRST NINE MONTHS OF THIS YEAR BELIEVES HIS INVESTMENT IS PAYING OFF AT A TIME WHEN US MALLS ARE ADDING AMUSEMENT PARKS AND BOLSTERING FOOD OFFERINGS HARRODS EMPLOYS A HARPIST IN ONE DEPARTMENT PIANISTS IN OTHERS AND A TROOP OF MARCHING BAGPIPERS THE SIZE OF THE TOY DEPARTMENT HAS BEEN QUADRUPLED THERE ARE NOW 11 RESTAURANTS UP FROM SIX STOREWIDE PRODUCTS INCLUDE 1000 CLOTHES HAMPERS 7500 DOG COLLARS 850 GOLDPLATED TOOTHBRUSHES HARRODS ALSO HOLDS LOTS OF SPECIAL EVENTS ONE RECENT DAY WHILE CHILDREN VISIT SANTA CLAUS INSIDE A FOURTHFLOOR CHRISTMAS GROTTO AN ART AND ANTIQUES FAIR PROCEEDS BELOW FEATURING AMONG THE ITEMS FOR SALE A 1 MILLION PAINTING BY PIETER BRUEGHEL THE YOUNGER BUT NOT ALL EVENTS ARE WINNERS WALKING THE AISLES OF THE RECENT ART AND ANTIQUES FAIR MR COLE THE HARRODS SPOKESMAN CONCEDES WE'RE WONDERING WHETHER FOOTFALL CUSTOMER TRAFFIC HAS BEEN ADEQUATE THE AISLES ARE EMPTY AND ROLLING HIS EYES AT MR COLE A FLOOR MANAGER SAYS NEVER AGAIN CUSTOMER SERVICE STANDS OUT DURING A SEPTEMBER VISIT TO LONDON ARTHUR C MARTINEZ CHAIRMAN OF SEARS ROEBUCK & CO'S MERCHANDISE DIVISION BOUGHT A CASHMERE MUFFLER AT HARRODSAND CRINGED AT THE THOUGHT OF ITS PAYROLL IT WAS A SATURDAY THE TRAFFIC WAS EXTRAORDINARY AND YET THERE WAS AN ABUNDANCE OF SALESPEOPLE HE SAYS AT HALF THE SIZE OF MARSHALL FIELD'S TWOMILLIONSQUAREFEET CHICAGO STORE HARRODS EMPLOYS ABOUT 800 MORE PEOPLE HARRODS HOLDS ONLY TWO SALES A YEAR OTHER TIMES CHARGING PREMIUMS 30 FOR A PICTIONARY GAME THAT COSTS 25 AT TOYS R US 108 FOR SOME NEW BALANCE RUNNING SHOES AVAILABLE AT A NEARBY ATHLETIC SHOP FOR 99 850 FOR A PAIR OF CALVIN KLEIN MEN'S BRIEFS THAT SELFRIDGES SELLS FOR 51 PENCE LESS ITS REFUSAL TO EXPAND HAS KEPT ITS NAME VALUABLE YOU PAY TWICE AS MUCH FOR JAMS AND BISCUITS BEARING THE HARRODS LABEL BUT IT'S SOMETHING YOU CAN'T BUY WHERE WE COME FROM IN NORTHERN ENGLAND SAYS MARGARET DALTON EXCLUSIVITY ALSO ENABLES HARRODS TO STRIKE DEALS WITH SUPPLIERS IT COSTS MORE MONEY TO DO BUSINESS WITH HARRODS THAN PROBABLY ANY OTHER STORE THAT SELLS ESTEE LAUDER BUT IT'S WORTH IT SAYS PER NEUMAN MANAGING DIRECTOR OF ESTEE LAUDER INC'S UNITED KINGDOM DIVISION ROBERT BERNARD PRESIDENT OF LIZ CLAIBORNE INC'S INTERNATIONAL DIVISION SAYS CLAIBORNE EARNS HARDLY ANY PROFIT ON PHENOMENAL SALES AT HARRODS BUT WANTS MORE SPACE BECAUSE BEING THERE IS PRESTIGIOUS WILL IT GET MORE MR BERNARD LAUGHS THERE'S A HUNDRED OTHER PEOPLE IN LINE 9312010148 931201 INTERNATIONAL BRITAIN'S BUDGET MIXES TAX INCREASES WITH PROMISE OF PUBLICSPENDING CUTS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON COMBINING MODEST TAX INCREASES WITH PROMISES OF FARREACHING PUBLICSPENDING CUTS CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE UNVEILED A 199495 BUDGET DESIGNED TO MAINTAIN CONSUMER CONFIDENCE AND FUEL ECONOMIC RECOVERY IN BRITAIN MR CLARKE WIDELY SEEN AS A LIKELY SUCCESSOR TO PRIME MINISTER JOHN MAJOR SAID THE PACKAGE WOULD CREATE THE RIGHT CLIMATE FOR INVESTMENT AND FOR JOBS TOGETHER THE SPENDING CUTS AND TAX INCREASES ANNOUNCED YESTERDAY WILL LOP AN EXTRA 55 BILLION 819 BILLION OFF NEXT YEAR'S PUBLICSECTOR BORROWING REQUIREMENT MR CLARKE PREDICTED COMING ON TOP OF TAX INCREASES TOTALING 675 BILLION ALREADY SCHEDULED TO TAKE EFFECT NEXT APRIL THE RESULT WILL BE TO LOWER THE BORROWING REQUIREMENT NEXT YEAR TO 38 BILLION FROM 50 BILLION THIS YEAR LOOKING AHEAD MR CLARKE SAID HE HOPED TO ELIMINATE THE BORROWING REQUIREMENT ENTIRELY BY THE END OF THIS DECADE FOR THE FISCAL YEAR STARTING NEXT APRIL AN EXTRA 175 BILLION IN REVENUE WILL BE RAISED THROUGH A SERIES OF MEASURES INCLUDING HIGHER TAXES ON GASOLINE CIGARETTES AND WINE AND NEW TAXES ON AIR TRAVEL AND HOUSEHOLD AND CAR INSURANCE AS EXPECTED MR CLARKE CHIPPED AWAY AT MORTGAGEINTEREST TAX RELIEF AND FROZE OR REDUCED THE VALUE OF SOME INCOMETAX ALLOWANCES EFFECTIVELY INCREASING THE BURDEN OF INCOME TAX FOR INDIVIDUALS CONTRARY TO WIDESPREAD FEARS HOWEVER HE REFRAINED FROM IMPOSING NEW TAXES ON NEWSPAPERS CHILDREN'S CLOTHES FOOD AND A SERIES OF OTHER PRODUCTS MR CLARKE SAID GOVERNMENT SPENDING IN 199495 WOULD BE REDUCED BY 35 BILLION FROM ALREADY STRINGENTLY CONTROLLED LEVELS SET FOR THE CURRENT YEAR TO ACHIEVE THAT TARGET HE PROMISED A FREEZE ON PUBLICSECTOR PAY AND ON THE COSTS OF RUNNING GOVERNMENT DEPARTMENTS COMBINED WITH CHANGES TO BRITAIN'S SYSTEM OF UNEMPLOYMENT AND DISABILITY BENEFITS FINANCIAL MARKETS GREETED THE BUDGET WITH WIDE DELIGHT THE FTSE 100 INDEX ENDED THE DAY AT 316690 UP 3110 POINTS THE CHANCELLOR STILL WAS MAKING HIS PRESENTATION WHEN LONDON EQUITIES TRADING OFFICIALLY CLOSED HOWEVER ANOTHER POPULAR MARKET INDICATOR THE FTSE 100 FUTURES CONTRACT WAS QUOTED IN AFTERHOURS DEALING AT 3199 UP 42 POINTS FROM MONDAY MARKETS ESPECIALLY WERE CHEERED BY MR CLARKE'S PLEDGE TO TRIM BRITAIN'S PUBLICSECTOR BORROWING REQUIREMENT WHILE AVOIDING INCREASES IN VALUEADDED TAXES MR CLARKE ALSO PROMISED REDUCTIONS IN SOCIALSECURITY CHARGES FOR EMPLOYERS IN RETURN FOR A REDUCTION IN THE LEVEL OF STATUTORY ENTITLEMENT TO SICK PAY HE PROMISED TO CLOSE A NUMBER OF TAXAVOIDANCE LOOPHOLES INCLUDING THE USE OF SHELL COMPANIES TO SCREEN PAYMENTS THAT SHOULD BE TAXED AND THE USE OF GOLD BARS AND OTHER COMMODITIES RATHER THAN CASH AS A MEANS TO AVOID SOCIALSECURITY CHARGES ON SALARY PAYMENTS THE CHANCELLOR SAID HE EXPECTS BRITAIN'S ECONOMY TO GROW 18 THIS YEAR AND ANOTHER 25 IN 1994 THE LATEST TAX INCREASES WILL LEAD TO AN INCREASE IN INFLATION EARLY NEXT YEAR HE CONCEDED BUT HE INSISTED THE EFFECT WOULD BE ONLY TEMPORARY INFLATION SHOULD REMAIN WITHIN THE GOVERNMENT'S 1 TO 4 TARGET NEXT YEAR HE PREDICTED THE RELATIVELY STABLE OUTLOOK FOR INFLATION SEEMS LIKELY TO PAVE THE WAY FOR A FURTHER CUT IN LENDING RATES POSSIBLY IN EARLY SPRING FOLLOWING LAST WEEK'S HALFPOINT CUT TO 55 I WOULDN'T BE SURPRISED TO SEE BASE RATES AT 45 BY NEXT SUMMER SAYS DAVID MACKIE AN ECONOMIST AT JP MORGAN FOR A GOVERNMENT THAT FOR MORE THAN A YEAR HAS PLUMBED THE DEPTHS OF UNPOPULARITY RATINGS IN OPINION POLLS MR CLARKE'S PACKAGE WAS A CALCULATED PIECE OF TIGHTROPEWALKING THAT COULD IMPROVE THE CONSERVATIVE GOVERNMENT'S IMAGE THIS WAS A CLEVER BUDGET IN THE WAY IT COMBINES MEASURES THAT WILL HAVE A SIGNIFICANT EFFECT ON THE DEFICIT WITHOUT DAMAGING CONSUMER CONFIDENCE SAID PATRICK FOLEY CHIEF ECONOMIC ADVISER AT LLOYDS BANK PLC JOHN SMITH LEADER OF THE OPPOSITION LABOR PARTY HOWEVER BRANDED THE BUDGET AS AN ODIOUS ATTEMPT TO SQUEEZE THE SICK AND THE UNEMPLOYED IN ORDER TO RAISE MONEY 9312010147 931201 COASTAL CORP MALAYSIAN VENTURE HOUSTON COASTAL CORP SAID ONE OF ITS SUBSIDIARIES FORMED A JOINT VENTURE WITH MALAYSIA'S NATIONAL OIL COMPANY TO MARKET PETROLEUM PRODUCTS AND USE COASTAL'S SUBIC BAY PHILIPPINES STORAGE TERMINAL THE AGREEMENT BETWEEN COASTAL AND A SUBSIDIARY OF PETROLIAM NASIONAL BERHAD OR PETRONAS CALLS FOR A NEW COMPANY SUBIC BAY PETROLEUM PRODUCTS LTD TO USE THE ENTIRE 24 MILLION BARRELS OF STORAGE CAPACITY AT THE SUBIC BAY FACILITY THE JOINT VENTURE WILL ALSO MARKET PETROLEUM PRODUCTS PRIMARILY IN THE SUBIC BAY FREEPORT ZONE BUT ALSO IN OTHER PARTS OF ASIA 9312010146 931201 TECHNOLOGY APPROVAL FOR AL LABS PRODUCTS FORT LEE NJ AL LABORATORIES INC SAID ITS US PHARMACEUTICALS UNIT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MAKE AND MARKET A GENERIC ANTIHISTAMINE AND TWO GENERIC PRODUCTS FOR THE TREATMENT OF VAGINAL YEAST INFECTIONS AL LABS SAID IT EXPECTS TO BEGIN MARKETING CLEMASTINE FUMERATE SYRUP A GENERIC ANTIHISTAMINE VERSION OF THE TAVIST BRAND AND TWO MICONAZOLE NITRATE VAGINAL SUPPOSITORY PRODUCTS GENERIC VERSIONS OF TWO MONISTAT BRAND PRODUCTS IN THE FIRST QUARTER OF 1994 TAVIST AND MONISTAT ARE PRODUCTS OF UNITS OF SANDOZ LTD AND JOHNSON & JOHNSON RESPECTIVELY 9312010145 931201 TECHNOLOGY & HEALTH DELL COMPUTER RETURNS TO BLACK IN THIRD PERIOD BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP SHOWING SIGNS OF A TURNAROUND RETURNED TO PROFITABILITY IN THE FISCAL THIRD QUARTER ALTHOUGH EARNINGS STILL WERE 58 LOWER THAN A YEAR EARLIER SHARES OF THE AUSTIN TEXAS MAILORDER COMPUTER MAKER JUMPED 12 ON THE BETTERTHANEXPECTED RESULTS CLOSING UP 3 AT 27125 IN NASDAQ STOCK MARKET TRADING DELL HOBBLED RECENTLY BY POOR INTERNAL FORECASTING SYSTEMS AND THE LACK OF A NOTEBOOK COMPUTER LINE REPORTED NET INCOME OF 12 MILLION OR 26 CENTS A SHARE FOR THE QUARTER ENDED OCT 31 SALES ROSE 33 TO 7573 MILLION THANKS TO A SURGE IN GOVERNMENT ORDERS IN SEPTEMBER ALTHOUGH DELL'S EARNINGS STILL WERE FAR BELOW THE YEAREARLIER 286 MILLION OR 72 CENTS A SHARE THEY EXCEEDED WALL STREET'S EXPECTATIONS THAT THE COMPANY WOULD ONLY BREAK EVEN IN THE THIRD QUARTER AND THEY APPEARED TO CALM INVESTORS RATTLED BY A DISMAL SECOND QUARTER THAT RESULTED IN DELL'S FIRST QUARTERLY LOSS EVER SOME ANALYSTS CONVINCED THAT THE COMPANY HAS SOLVED ITS FORECASTING AND INVENTORY PROBLEMS RAISED THEIR ESTIMATES ON DELL'S FOURTHQUARTER EARNINGS MOST THOUGH SAID THEY WOULD WAIT A WHILE BEFORE CHANGING THEIR RECOMMENDATIONS I HAVE NOT HEARD ANYTHING FUNDAMENTALLY DIFFERENT ABOUT THEIR BUSINESS THAT WOULD CAUSE ME TO REEVALUATE SAID VADIM ZLOTNIKOV A TECHNOLOGY ANALYST AT SANFORD C BERNSTEIN IN NEW YORK INDEED DELL OFFICIALS THEMSELVES WERE CAUTIOUS IN THEIR FORECASTS SAYING THAT THE COMPANY DOESN'T EXPECT YEARTOYEAR PROFIT GAINS IN THE FOURTH QUARTER AND THAT IT WON'T HIT ITS GOAL OF 3 BILLION IN SALES FOR THE FULL FISCAL YEAR WE STILL HAVE A LOT OF THINGS THAT AREN'T FIXED SAID CHAIRMAN MICHAEL DELL I THINK WE STILL HAVE A LOT TO DO TOPPING THAT LIST MR DELL SAID IS MAKING SURE THE COMPANY GETS BACK INTO THE NOTEBOOK COMPUTER BUSINESS SINCE DELL SCRAPPED ITS NOTEBOOK LINE LAST SPRING THE MACHINES HAVE BECOME COMPUTING'S HOTTEST NICHE ACCOUNTING FOR AS MUCH AS 25 OF REVENUE AT SOME COMPANIES DELL'S NOTEBOOK SALES TOTALED ONLY 5 MILLION IN THE THIRD QUARTER COMPARED WITH 62 MILLION A YEAR EARLIER MR DELL SAID THE COMPANY WOULD LAUNCH A PHASED NOTEBOOK COMPUTER INTRODUCTION NEXT YEAR BUT HE DECLINED TO PROVIDE FURTHER DETAILS ANALYSTS INTERPRETED HIS COMMENTS TO MEAN THAT DELL WOULD REENTER THE NOTEBOOK BUSINESS BY INITIALLY RESELLING ANOTHER COMPANY'S MACHINES THEN PHASING IN ITS OWN PRODUCTS LATER PC MAGAZINE AN INDUSTRY TRADE PUBLICATION REPORTED THAT DELL PLANS TO RESELL NOTEBOOKS MADE BY AST RESEARCH INC AN IRVINE CALIF COMPETITOR NEITHER DELL NOR AST WOULD COMMENT ON THE REPORT NEW HIGHEND DESKTOP AND SERVER COMPUTERS HELPED BEEF UP DELL'S PROFIT MARGINS DURING ITS THIRD QUARTER GROSS MARGINS REPRESENTED 18 OF REVENUE IN THE PERIOD UP SHARPLY FROM 65 IN THE SECOND QUARTER BUT DOWN FROM 21 A YEAR AGO 9312010144 931201 DUPONT'S CHARGE ON IMAGING GROUP SUGGESTS CHANGE BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DUPONT CO'S RECENT BIG WRITEDOWN OF ASSETS IN ITS IMAGING BUSINESS HAS RAISED SPECULATION IN SOME QUARTERS THAT THE CHEMICAL GIANT MAY BE PLANNING TO EXIT THE BUSINESS THE WILMINGTON DEL COMPANY CITING CORPORATE POLICY DECLINES ANY COMMENT ON WHETHER THE IMAGING BUSINESS ALSO KNOWN AS DUPONT'S PRINTING AND PUBLISHING OPERATION MIGHT BE IN LINE FOR DIVESTITURE OR SOME OTHER RADICAL CHANGE IN LATE OCTOBER DUPONT DISCLOSED THAT THIRDQUARTER RESULTS WOULD BE MARRED BY 13 BILLION IN ASSORTED RESTRUCTURING CHARGES PERHAPS THE MOST PROMINENT AND MOST INTRIGUING OF THE CHARGES WAS A 448 MILLION HIT TO WRITE DOWN ASSETS AT DUPONT'S IMAGING GROUP THE IMAGINGSYSTEMS BUSINESS HAD 1992 REVENUE OF 175 BILLION AND RECORDED AN OPERATING LOSS THAT HAS BEEN ESTIMATED AT ABOUT 30 MILLION OR SLIGHTLY HIGHER THE OPERATION HAS CONTINUED TO LOSE MONEY THROUGH THE YEAR TO DATE ALTHOUGH IT IS EXPECTED TO RECORD AN OPERATING PROFIT IN THE CURRENT FOURTH QUARTER THE BUSINESS HAS TWO PRINCIPAL COMPONENTS ITS CONSUMABLES SIDE MAKES SUCH PRINTING AND GRAPHICARTS SUPPLIES AS FILMS LIGHTSENSITIVE PAPERS AND PRINTING PLATES FOR SALE TO THOUSANDS OF PRINTINGINDUSTRY CUSTOMERS DUPONT ADDED TO THOSE FUNDAMENTAL INDUSTRY LINES IN THE LATE 1980S THROUGH ACQUISITIONS AND A JOINTVENTURE ARRANGEMENT BUT EVEN PRIOR TO THAT THE CONSUMABLES BUSINESS HAS LONG BEEN A PROFITABLE BUSINESS FOR THE PARENT IN THE LATTER 1980S HOWEVER DUPONT DECIDED THAT IT WANTED TO PUSH FURTHER INTO ELECTRONIC IMAGING TO THAT END IT HAS MADE A SERIES OF ACQUISITIONS THE LARGEST BEING A JOINT 380 MILLION PURCHASE ALONG WITH JAPAN'S FUJI PHOTO FILM CO OF CROSFIELD ELECTRONICS TO DATE THE VENTURE INTO ELECTRONIC IMAGING HAS PROVEN A DRAIN ON THE DIVISION'S PROFITABILITY AND A NUMBER OF ANALYSTS HAVE CONTENDED THE MOVE WAS MISGUIDED SG WARBURG CHEMICAL ANALYST PAUL RAMAN CALLS THE IMAGING OPERATION DUPONT'S WORST BUSINESS AND SAYS CLEANING IT UP WOULD BE A BIG PLUS PAINEWEBBER INC'S ANDREW CASH ALSO SAYS THE IMAGING BUSINESS PROBABLY IS BEING SHOPPED TO RIVALS BUT HE THINKS THE 36 BILLION REVENUE COMPANY NEEDS TO TAKE MORE DRASTIC RESTRUCTURING STEPS HE FEELS THAT DUPONT SHOULD TAKE ITS BIG OIL AND GAS BUSINESS AND SEPARATE IT FROM THE CHEMICAL BUSINESS SO THEY CAN BECOME MORE FOCUSED HE ADDS ABSENT RADICAL RESTRUCTURING SUCH AS THIS THE COMPANY IS JUST A PLAY ON THE ECONOMIC TURNAROUND 9312010143 931201 WHO'S NEWS SKYBOX INTERNATIONAL INC SKYBOX INTERNATIONAL INC DURHAM NC THIS SPORTS AND ENTERTAINMENT TRADINGCARD COMPANY NAMED TOMMIE E SMITH HOWARD M LORBER AND MARK E BLOOM DIRECTORS EXPANDING THE BOARD TO FIVE MEMBERS MR SMITH 53 YEARS OLD IS SENIOR VICE PRESIDENT FINANCE AND ADMINISTRATION AND TREASURER AT SKYBOX MR LORBER 45 IS PRESIDENT OF HALLMAN & LORBER ASSOCIATES A CONSULTING AND ACTUARIAL COMPANY AND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NATHAN'S FAMOUS INC A RESTAURANT CHAIN MR BLOOM 42 IS A MANAGING DIRECTOR AT WALSH GREENWOOD & CO AN INVESTMENT FIRM 9312010142 931201 ECONOMY CONFIDENCE ROSE NEARLY 11 POINTS IN NOVEMBER CONFERENCE BOARD'S INDEX OF CONSUMER ATTITUDES IS HIGHEST SINCE JANUARY BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY MAY NOT BE OUT OF THE WOODS BUT NOVEMBER'S SURGE OF NEARLY 11 POINTS IN THE CONSUMER CONFIDENCE INDEX SUGGESTS IT IS HEADING IN THE RIGHT DIRECTION IN THE HIGHEST READING SINCE JANUARY THE CONFERENCE BOARD'S NOVEMBER CONSUMER CONFIDENCE INDEX LEAPT TO 712 FROM A REVISED 605 IN OCTOBER THE BIGGERTHANEXPECTED RISE HELPED SEND BOND PRICES LOWER ALTHOUGH STOCKS CLOSED SLIGHTLY HIGHER THE SURVEY OF 5000 HOUSEHOLDS CONDUCTED FOR THE ECONOMIC RESEARCH ORGANIZATION BY NATIONAL FAMILY OPINION INDICATED CONSUMER CONFIDENCE WAS UP IN ALL REGIONS OF THE NATION EXCEPT WEST SOUTH CENTRAL ARKANSAS LOUISIANA OKLAHOMA AND TEXAS THE STRONGEST GAINS WERE RECORDED IN THE REGIONS SUFFERING THE GREATEST ECONOMIC DIFFICULTIES THE BIGGEST ADVANCE WAS 171 POINTS IN THE PACIFIC REGION TO A STILL LOW 581 CONFIDENCE ALSO INCREASED DRAMATICALLY IN THE NORTH CENTRAL SOUTH ATLANTIC AND NEW ENGLAND REGIONS CONSUMER ATTITUDES ABOUT THEIR PRESENT SITUATION AND THEIR EXPECTATIONS BOTH MADE BIG IMPROVEMENTS FOR THE PAST YEAR EXPECTATIONS HAVE REMAINED SIGNIFICANTLY HIGHER THAN FEELINGS ABOUT THE PRESENT SITUATION BUT THE GAP HAS NARROWED IN RECENT MONTHS THIS IS THE BEST IMPROVEMENT WE'VE SEEN IN A LONG TIME SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF CONSUMER RESEARCH FOR THE CONFERENCE BOARD MR LINDEN CALLED THE INCREASE A VERY GOOD SIGN BUT CAUTIONED THAT THE JUMP STILL LEAVES CONSUMER CONFIDENCE AT LEVELS ASSOCIATED WITH A LACKLUSTER ECONOMY CONSUMER CONFIDENCE ISN'T BOOMING IT IS SIMPLY BOOMING BY COMPARISON WITH THE RECENT SET OF INDEXES SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO CITING INCREASES IN CONSUMER SPENDING IN THE SECOND AND THIRD QUARTERS MR DEDERICK SAID THE INDEX HAS AT LAST CAUGHT UP WITH REALITY HE FELT CONSUMER SPENDING WOULD REMAIN FAIRLY CONSTANT BUT CAUTIONED AGAINST THE CONFERENCE BOARD'S OPTIMISM THAT SPENDING WOULD INCREASE PEOPLE AREN'T GOING TO SPEND ANY MORE THAN THEY HAVE BEEN THE SAVINGS RATE IS LOW PEOPLE HAVE ALREADY SPENT BUT NOW THEY ARE STARTING TO BORROW AS WELL SANDRA SHABER CONSULTING ECONOMIST AT THE WEFA GROUP POINTED OUT LOW INTEREST RATES ARE INCREASING BUSINESS INVESTMENT AS WELL AS AUTO AND HOME SALES THESE INCREASES ARE PARTIALLY RESPONSIBLE FOR THE WEFA GROUP'S FORECASTING A 34 FOURTHQUARTER GROWTH RATE IN GROSS DOMESTIC PRODUCT WHILE THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX WENT UP THE UNIVERSITY OF MICHIGAN'S NOVEMBER CONSUMER SENTIMENT INDEX FELL 15 POINTS TO 812 WHEN THE TWO INDEXES MOVE IN DIFFERENT DIRECTIONS IT IS BECAUSE OF THE JOB MARKET MS SHABER SAID THE CONFERENCE BOARD'S CONFIDENCE INDEX IS VERY SENSITIVE TO JOBS AND REFLECTS IMPROVED JOB GROWTH OR AT LEAST NO EXPECTED JOB LOSS WHILE THE UNIVERSITY OF MICHIGAN INDEX IS NOT 9312010141 931201 TROUBLED MARTECH USA TO POST LOSS OF OVER 15 MILLION FOR FISCAL YEAR ANCHORAGE ALASKA MARTECH USA INC A TROUBLED ENVIRONMENTAL SERVICES AND CONSTRUCTION CONCERN REPORTED THAT IT EXPECTS A NET LOSS OF MORE THAN 15 MILLION FOR THE FISCAL YEAR ENDED AUG 31 THE DISCLOSURE FUELS QUESTIONS ABOUT MARTECH'S ACCOUNTING PRACTICES MARTECH HAS BEEN UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION FOR POSSIBLE ACCOUNTING IRREGULARITIES AND IN SWORN TESTIMONY AND NUMEROUS RECENT INTERVIEWS SEVERAL FORMER AND CURRENT MARTECH OFFICIALS HAVE ALLEGED THAT THE COMPANY HAS INFLATED REVENUE AND PROFIT FOR SEVERAL YEARS BY FAILING TO RECORD CERTAIN DEBTS OVERESTIMATING PROFIT ON CERTAIN CONTINUING CONTRACTS AND BY FALSIFYING INVOICES AMONG OTHER ALLEGED PRACTICES MARTECH HAS DENIED THE ALLEGATIONS AND HAS DEFENDED ITS ACCOUNTING PRACTICES MARTECH BLAMED THE PROJECTED 15 MILLION LOSS ON COST OVERRUNS ON CERTAIN FIXED PRICE CONTRACTS AND ON WRITEDOWNS FROM CERTAIN JOINT VENTURES IN EUROPE IT ALSO SAID THAT IT HAS APPLIED WITH THE SEC FOR A 15DAY EXTENSION OF THE DEADLINE FOR FILING ITS COMPLETE RESULTS FOR THE PERIOD ENDED AUG 31 THAT DEADLINE WAS MONDAY A MARTECH SPOKESWOMAN DECLINED TO COMMENT ON THE RESULTS A YEAR EARLIER MARTECH EARNED 64 MILLION OR 65 CENTS A SHARE ON REVENUE OF 559 MILLION MARTECH WAS ONCE A MUCHTOUTED FASTGROWING POWERHOUSE IN THE ENVIRONMENTAL CLEANUP FIELD BUT IT HAS BEEN REELING SINCE EARLY NOVEMBER WHEN PUBLISHED REPORTS DISCLOSED MYRIAD PROBLEMS MARTECH ALSO IS UNDER INVESTIGATION BY TWO U S ATTORNEYS' OFFICES FOR POSSIBLE VIOLATIONS OF ENVIRONMENTAL LAWS IT ALSO IS BEING INVESTIGATED BY THE US ARMY THE US NAVY AND THE US AIR FORCE FOR POSSIBLE CONTRACT FRAUD THE PROJECTED LOSS WAS ANNOUNCED AFTER THE CLOSE OF TRADING YESTERDAY HOWEVER TRADING IN MARTECH SHARES WAS HALTED EARLIER IN THE DAY MARTECH SHARES HAVE CRATERED SINCE ITS PROBLEMS HAVE BECOME WIDELY KNOWN SINCE NOV 1 THE STOCK HAS PLUNGED ABOUT 64 TO 3 FROM 825 ON THE NEW YORK STOCK EXCHANGE MARTECH HAS BEEN HIT WITH AT LEAST NINE SHAREHOLDER LAWSUITS IN RECENT DAYS ALLEGING MANAGEMENT MISLED INVESTORS ABOUT THE FIRM'S FINANCIAL CONDITION IN ADDITION THE COMPANY'S OPERATION PROBLEMS ARE MOUNTING ACCORDING TO JIM HALLOCK CHIEF FINANCIAL OFFICER OF SAN JUAN CONSTRUCTION CO AND NAVY OFFICIALS MARTECH WAS FIRED FROM A MILITARY JOB AT KANEHOE MARINE CORPS AIR STATION LAST WEEK BECAUSE OF SHODDY WORK AND FAILURE TO PAY SUBCONTRACTORS SAN JUAN WAS THE PRIME CONTRACTOR ON THE JOB IT HIRED MARTECH AS A SUBCONTRACTOR MARTECH DECLINED TO COMMENT 9312010140 931201 AIRLINES ARE ENJOYING LOW FUEL PRICES BUT ANALYSTS STILL SEE 4THQUARTER LOSSES BY MICHAEL J MCCARTHY AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL JETFUEL PRICES AT THEIR LOWEST LEVELS SINCE MID1990 ARE PRODUCING A WINDFALL FOR THE AIRLINE INDUSTRY BUT NOT ENOUGH TO OFFSET EXPECTED FOURTHQUARTER LOSSES FALLING FUEL COSTS THIS YEAR HELPED RETURN THE AIRLINE INDUSTRY TO PROFITABILITY IN THE THIRD QUARTER FOR THE FIRST TIME IN TWO YEARS BUT ANALYSTS EXPECT CARRIERS TO REPORT LOSSES FOR THE TRADITIONALLY SLACK FOURTH QUARTER CONTRIBUTING TO THE INDUSTRY'S FOURTH CONSECUTIVE UNPROFITABLE YEAR NOTING THAT A ONECENT DECLINE IN JET FUEL PRICES SAVES US AIRLINES ABOUT 150 MILLION A YEAR DAVID SWIERENGA CHIEF ECONOMIST OF THE AIR TRANSPORT ASSOCIATION SAID THE COST RELIEF ONLY MAKES THE ROAD TO PROFITABILITY A LITTLE LESS STEEP REPRESENTING 14 OF THE AIRLINE INDUSTRY'S OPERATING EXPENSES FUEL IS ECLIPSED ONLY BY LABOR COSTS WHICH ACCOUNT FOR ABOUT 35 THE PRICE OF AVIATION KEROSENE WHICH HAS BEEN EDGING DOWNWARD SINCE THE SPRING IS EXPECTED TO DECLINE FURTHER THIS WEEK IN CONCERT WITH THE RECENT PLUNGE IN OIL PRICES FOR THE WEEK ENDING LAST FRIDAY JET FUEL PURCHASED IN NEW YORK ON THE SPOT MARKET COST 5568 CENTS A GALLON ACCORDING TO JET FUEL INTELLIGENCE A TRADE PUBLICATION THAT WAS DOWN 1 FROM THE WEEK BEFORE AND DOWN 6 FROM A MONTH EARLIER SPOT MARKET PRICES LAG BEHIND OIL PRICE MOVEMENTS ON THE MAJOR MARKETS SAID JON STUART STAFF EDITOR OF JET FUEL INTELLIGENCE ADDING THAT HE EXPECTS PRICES WILL BE DOWN SUBSTANTIALLY THIS WEEK WHILE AIRLINES COULD USE THE SAVINGS TO CUT TICKET PRICES AND STIMULATE ANEMIC TRAVEL DEMAND MOST SAID THEY WON'T DO SO A SPOKESMAN SAID CONTINENTAL AIRLINES INC WILL APPLY THE SAVINGS TO THE BOTTOM LINE BASED ON HOW MUCH FUEL WE CONSUME THERE'S A 31 MILLION PER YEAR SAVINGS IN OPERATING COSTS FOR EACH 1 DROP IN CRUDE OIL PRICES HE SAID FOR USAIR GROUP INC THE FUEL PRICE DROP IS A WELCOME ADVANTAGE THAT WILL HELP THE CARRIER OFFSET LOSSES A SPOKESMAN SAID MICHAEL J DURHAM CHIEF FINANCIAL OFFICER FOR AMR CORP'S AMERICAN AIRLINES DESCRIBED THE RECENT PRICE DROP AS A FLICKERING OF A SILVER LINING A SOUTHWEST AIRLINES CO SPOKESMAN SAID I DON'T SEE WHERE FUEL PRICES WOULD HAVE AN IMPACT ON OUR FARES WE ALREADY HAVE THE LOWEST FARES ON AN ANNUALIZED BASIS A PENNY SAVED ON KEROSENE SAVES SOUTHWEST 5 MILLION FOR DELTA AIR LINES A PENNY OFF TRANSLATES INTO 25 MILLION A YEAR IN SAVINGS BUT DELTA HAS MADE NO PLANS FOR ITS FUELCOST WINDFALL YOU CAN ALWAYS COUNT ON FUEL GOING UP SAID A SPOKESWOMAN INDEED FORECASTING JET FUEL PRICES CAN BE AN EXERCISE IN FUTILITY IT'S VIRTUALLY IMPOSSIBLE SIGHS AMERICAN'S MR DURHAM WE DO IT BUT WE'VE NEVER BEEN RIGHT 9312010139 931201 DJ EQUITY INDEX CHANGE NEW YORK ELECTRONIC ARTS INC AND ACCLAIM ENTERTAINMENT INC ARE BEING ADDED TO THE TOYS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKETS INDEX EFFECTIVE TODAY FISHERPRICE INC IS BEING DROPPED FROM THE GROUP ALSO EFFECTIVE TODAY BECAUSE IT WAS ACQUIRED BY MATTEL INC 9312010138 931201 A VICTORY FOR SHAREHOLDERS BY GREGG A JARRELL DELAWARE HAS SLAMMED PARAMOUNT COMMUNICATIONS' MARTIN DAVIS AGAIN LAST WEEK JACK JACOBS VICE CHANCELLOR OF THE DELAWARE CHANCERY COURT REBUKED PARAMOUNT AND MR DAVIS FOR FAVORING PARAMOUNT'S PROPOSED MERGER WITH VIACOM OVER THE HOSTILE TENDER OFFER OF QVC WHICH IS RUN BY MR DAVIS'S BITTER ENEMY BARRY DILLER MR DAVIS'S DEFEAT TO MR DILLER IN A DELAWARE COURT IS ESPECIALLY IRONIC BECAUSE 4 1/2 YEARS AGO MR DAVIS AND PARAMOUNT WERE LOSERS IN THE FAMOUS 1989 TIMEWARNER DECISION AT THAT TIME IT WAS MR DAVIS MAKING THE HOSTILE TENDER OFFER TO UPSET THE STRATEGIC MERGER OF TIME AND WARNER BACK THEN THE DELAWARE COURT RULED THAT THE TIMEWARNER DEAL DID NOT INVOLVE A CHANGE OF CONTROL IT WAS A STRATEGIC MERGER NOT A SALE THEREFORE TIME'S DIRECTORS COULD USE THEIR BUSINESS JUDGMENT TO REJECT PARAMOUNT'S 220PERSHARE OFFER EVEN THOUGH THE STOCK MARKET VALUED THE TIMEWARNER MERGER SIGNIFICANTLY LOWER LAST WEEK JUDGE JACOBS RULED THAT THE PARAMOUNTVIACOM DEAL DOES INVOLVE A CHANGE OF CONTROL SO PARAMOUNT MUST NOT UNDULY INTERFERE WITH THE AUCTION PROCESS JUDGE JACOBS'S DECISION HAS LEGAL EXPERTS SHAKING THEIR HEADS AND MANY ARE BETTING THAT THE DELAWARE SUPREME COURT WILL OVERTURN THE DECISION SHAREHOLDERS HOWEVER SHOULD PRAY THAT JUDGE JACOBS'S DECISION STANDS HINDSIGHT PROVES THAT THE TIMEWARNER DECISION WAS VERY HARMFUL TO TIME'S SHAREHOLDERS IN JULY 1989 PARAMOUNT HAD MADE IT CLEAR IT WAS WILLING TO PAY AT LEAST 220 CASH PER SHARE FOR TIME INSTEAD THE DELAWARE COURT KILLED PARAMOUNT'S CASH OFFER AND ALLOWED TIME TO CONSUMMATE ITS STRATEGIC ALLIANCE WITH WARNER THE COURT REASONED THAT THE TIME DIRECTORS HAD A REASONABLE BASIS FOR DISREGARDING THE STOCK MARKET'S LOW VALUATION OF THE POSTWARNER TIME STOCK THE COURT HELD THAT TIME'S DIRECTORS WERE INSIDERS WITH SPECIAL INFORMATION ON TIME'S LONGTERM INTRINSIC VALUE AS ESTIMATED BY THEIR INVESTMENT BANKERS THESE BANKERS OPINED THAT POSTWARNER TIME WAS WORTH AT LEAST 250 A SHARE IN PRESENT VALUE TERMS THEREFORE TIME'S DIRECTORS WERE PERFECTLY FREE TO DISREGARD THE STOCK MARKET'S PESSIMISTIC VALUATIONS BLOCK PARAMOUNT ALLCASH OFFER AND PROCEED WITH THE TIMEWARNER MERGER ALL WITH DELAWARE'S BLESSING AT THAT TIME 4 1/2 YEARS AGO TIME'S STOCK TRADED FOR ABOUT 150 IF YOU BOUGHT A SHARE OF TIME STOCK THEN AND HELD IT THROUGH TODAY IT WOULD BE WORTH ONLY ABOUT 180 BY COMPARISON IF THE DELAWARE COURT HAD NOT BLOCKED PARAMOUNT'S TENDER OFFER SHAREHOLDERS WOULD HAVE POCKETED AT LEAST 220 AND PROBABLY SIGNIFICANTLY MORE IF TIME HAD CONDUCTED AN AUCTION IF A TIME SHAREHOLDER HAD RECEIVED 220 IN CASH IN JULY 1989 AND INVESTED IT IN THE S&P 500 THIS INVESTMENT WOULD BE WORTH ABOUT 382 PER SHARE TODAY BECAUSE OF ITS CHILLING EFFECT ON THE MARKET FOR CORPORATE CONTROL THE TIMEWARNER DECISION IMPOSED FAR GREATER COSTS ON THE SHAREHOLDERS OF OTHER COMPANIES BECAUSE MOST LARGE COMPANIES ARE INCORPORATED THERE DELAWARE'S COURTS AND LEGISLATURE EFFECTIVELY SET THE NATIONAL RULES FOR THE MERGER GAME WHILE THE COURT IS INSTITUTIONALLY APPOINTED TO PROTECT SHAREHOLDERS IN MERGER AND BUSINESS DISPUTES IT HAS POWERFUL PAROCHIAL INCENTIVES TO PROTECT TOP MANAGEMENT THEREBY PRESERVING ITS LUCRATIVE FRANCHISE AS THE HOME OF LARGE BUSINESS INCORPORATIONS THE NUMEROUS LITIGIOUS TAKEOVER BATTLES OF THE 1980S CREATED GREAT ANXIETY AMONG TOP MANAGERS WHOSE POLITICAL PRESSURE ULTIMATELY MOVED DELAWARE TO SET NEW RULES THAT FAVORED MANAGEMENT OVER SHAREHOLDERS BY 1990 THE TIMEWARNER DECISION AND DELAWARE'S NEW MERGER MORATORIUM LAW TOGETHER WITH A STRING OF RELATED COURT DECISIONS LEGALIZING THE POWERFUL POISONPILL DEFENSIVE WEAPON HAD VIRTUALLY ELIMINATED HOSTILE TAKEOVERS MERGER AND ACQUISITION ACTIVITY CAME TO A SCREECHING HALT AFTER THE BOOM YEARS 198689 ONLY RECENTLY HAS MERGER ACTIVITY REBOUNDED MANY COMMENTATORS HAVE ATTRIBUTED THE SUDDEN DROPOFF IN M&A ACTIVITY DURING 199092 TO THE BUSH ADMINISTRATION'S DRACONIAN CREDIT RESTRICTIONS UNDOUBTEDLY THESE ARTIFICIAL CONSTRAINTS WERE AN IMPORTANT SHORTTERM CAUSE BUT THESE RESTRICTIONS WERE LIFTED SOME TIME AGO AND HOSTILE TAKEOVER ACTIVITY HAS NOT RETURNED MOREOVER ECONOMISTS HAVE LEARNED FROM EXPERIENCE NEVER TO ATTRIBUTE SIGNIFICANT LONGTERM ECONOMIC EFFECTS TO EXPLANATIONS CENTERED ON THE SUPPLY OF FINANCING MONEY IS EXTREMELY FUNGIBLE AND ADEQUATE FINANCING GENERALLY MAKES ITS WAY TO PROMISING INVESTMENTS NO THE REASON M&A ACTIVITY HAS NOT RECOVERED IS BECAUSE DELAWARE'S STRICT ANTITAKEOVER RULES MAKE IT UNACCEPTABLY RISKY AND COSTLY FOR ANY BIDDER TO MAKE AN UNSOLICITED TAKEOVER ATTEMPT FOR A DELAWARE FIRM THAT HAS NOT ALREADY PUT ITSELF IN PLAY THE ONLY IMPORTANT HOSTILE TAKEOVER ATTEMPTS IN RECENT YEARS HAVE TARGETED COMPANIES THAT HAVE ALREADY PUT THEMSELVES IN PLAY WITH MERGER PROPOSALS OR SIMILAR VOLUNTARY BULLSEYE SIGNS BY CONTRAST A LARGER PERCENTAGE OF THE M&A ACTIVITY IN THE LATE 1980S WAS INSTIGATED BY UNSOLICITED BIDS FOR GOING CONCERNS THAT HAD NOT VOLUNTARILY PUT THEMSELVES IN PLAY AT ALL IT IS THE CONSTANT THREAT OF THIS KIND OF SURPRISE HOSTILE TENDER OFFER THAT PROVIDES THE EFFECTIVE DISCIPLINE OF TOP MANAGEMENT OF PUBLIC COMPANIES IF BIDDERS HAVE PRACTICAL ACCESS TO SURPRISE OFFERS THEN MANAGEMENT HAS TO WORK HARD TO KEEP ITS STOCK FULLY VALUED FOR SHAREHOLDERS OTHERWISE IT RISKS TAKEOVER OF COURSE THIS THREAT OF SURPRISE TENDER OFFER WAS PRECISELY WHAT MANAGEMENT WAS SUCCESSFUL IN LOBBYING AGAINST IN DELAWARE THE PARAMOUNTQVC FIGHT STARTED ABOUT 10 WEEKS AGO WHEN PARAMOUNT AND VIACOM ANNOUNCED A STRATEGIC MERGER AGREEMENT IN WHICH VIACOM'S SUMNER REDSTONE WOULD END UP WITH ABOUT 70 OF THE VOTES IN THE MERGED ENTITY MR DILLER'S QVC THEN LAUNCHED A HOSTILE HIGHERVALUED OFFER FOR PARAMOUNT PRECIPITATING THE LITIGATION THAT RESULTED IN LAST WEEK'S DELAWARE DECISION BOTH BIDDERS HAVE EMBRACED SEVERAL EQUITY PARTNERS SINCE QVC ENTERED THE FRAY AND HAVE RAISED THEIR BIDS MOST RECENTLY VIACOM WAS OFFERING PARAMOUNT HOLDERS 85 A SHARE IN CASH FOR 51 OF PARAMOUNT PLUS VIACOM STOCK WORTH ABOUT 73 A SHARE FOR A TOTAL VALUE OF ABOUT 95 BILLION QVC WAS OFFERING 90 A SHARE IN CASH FOR 51 OF PARAMOUNT PLUS QVC STOCK VALUED AT ABOUT 84 A SHARE FOR A TOTAL VALUE OF ABOUT 105 BILLION FROM THE BEGINNING PARAMOUNT HAS TRIED HARD TO FOLLOW WHAT IT THOUGHT WERE THE RULES UNDER THE TIMEWARNER DECISION IT HAS CAREFULLY BILLED THE PARAMOUNTVIACOM DEAL AS A STRATEGIC ALLIANCE AVOIDING THE WORDS AUCTION OR FOR SALE PARAMOUNT GAVE VIACOM HUGE UNPRECEDENTED LOCKUP FEES TO DISCOURAGE COMPETITIVE BIDDING IT EVEN MADE IT PART OF THE MERGER AGREEMENT THAT PARAMOUNT DIRECTORS WERE BARRED FROM CONSIDERING ANY BID THAT WAS SUBJECT TO MATERIAL FINANCING CONTINGENCIES ALL THIS FAILED TO IMPRESS JUDGE JACOBS HE RULED THAT UNLIKE TIMEWARNER THE PARAMOUNTVIACOM DEAL CLEARLY INVOLVES A CHANGE OF CONTROL SALE TO VIACOM WOULD REPRESENT THE LAST CHANCE PARAMOUNT HOLDERS WOULD HAVE TO OBTAIN A CONTROL PREMIUM SINCE MR REDSTONE WOULD HAVE VOTING CONTROL OF THE MERGED ENTITY IN A SALE DELAWARE LAW HOLDS DIRECTORS TO ENHANCED DUTIES WHICH LIMIT THEIR USE OF THE BUSINESS JUDGMENT RULE UNDER THE LAW THEY MUST SEEK THE BEST POSSIBLE DEAL FOR THEIR SHAREHOLDERS THEREFORE IN JUDGE JACOBS'S EYES ALL OF PARAMOUNT'S ELABORATE STEPS TO IGNORE AND DISADVANTAGE QVC PROVED ONLY THAT THE PARAMOUNT DIRECTORS FAILED TO MEET THEIR DUTY TO SEEK OUT THE BEST DEAL FOR THEIR SHAREHOLDERS THE DELAWARE SUPREME COURT HAS A GOLDEN OPPORTUNITY TO RETURN TO SHAREHOLDERS SOME OF THE POWER THEY LOST TO MANAGEMENT UNDER THE TIMEWARNER DECISION THE COURT SHOULD RULE THAT ANY MERGER IS A SALE TRIGGERING THE ENHANCED DIRECTOR DUTIES THAT MAXIMIZE SHAREHOLDER VALUE THIS WOULD PUT RESPONSIBILITY FOR MAKING MAJOR CORPORATE CONTROL DECISIONS WITH SHAREHOLDERS DIRECTORS' ROLES SHOULD BE RELEGATED TO OVERSEEING THE RUNNING OF THE GOING CONCERN WHICH IS WHERE THE PROTECTION OF THE BUSINESS JUDGMENT RULE MAKES PERFECT SENSE IN TRUTH HOWEVER POLITICS WILL PROBABLY DECIDE WHAT THE DELAWARE SUPREME COURT DOES SAD TO SAY THE COURT MAY WELL OVERTURN JUDGE JACOBS'S RULING AFTER ALL DELAWARE DID NOT OBTAIN ITS HUGE DOMINANCE IN THE MARKET FOR INCORPORATIONS BY UNDERMINING MANAGEMENT THE SAME POLITICAL FORCES THAT GAVE US THE TIMEWARNER DECISION WILL PROBABLY GIVE US A REVERSAL OF JUDGE JACOBS'S DECISION IF SO SHAREHOLDERS WILL BE THE LOSERS JUST AS THEY HAVE BEEN THE BIG LOSERS SINCE TIMEWARNER MR JARRELL IS A FINANCE PROFESSOR AT THE UNIVERSITY OF ROCHESTER'S SIMON BUSINESS SCHOOL FRANK DORKEY A ROCHESTER CONSULTANT ASSISTED WITH THIS ARTICLE 9312010137 931201 USX WILL PAY LTV TOTAL OF 375 MILLION TO SETTLE LITIGATION PITTSBURGH USX CORP AGREED TO PAY LTV CORP 375 MILLION TO SETTLE COURTORDERED DAMAGES AGAINST USX'S FORMER BESSEMER & LAKE ERIE RAILROAD CO UNIT THAT AMOUNT IS ROUGHLY 125 MILLION LESS THAN LTV WAS ENTITLED TO RECEIVE UNDER A 1991 COURT RULING UPHELD LAST MAY BY AN APPEALS COURT IN PHILADELPHIA AN LTV SPOKESMAN COULDN'T BE REACHED TO EXPLAIN WHY THE COMPANY SETTLED FOR THE LOWER AMOUNT BUT IN A NEWS RELEASE DAVID H HOAG LTV'S CHAIRMAN SAID HE WAS PLEASED THIS PROLONGED LITIGATION HAS BEEN CONCLUDED PROCEEDS WILL BE USED TO REDUCE LTV'S UNFUNDED PENSION LIABILITY AS PREVIOUSLY REPORTED SEVERAL STEELMAKERS SUED B&LE NOW OWNED BY CLOSELY HELD TRANSTAR INC OF MONROEVILLE PA IN 1982 FOR ALLEGED ANTITRUST VIOLATIONS THE SUIT ALLEGED THAT B&LE AND OTHER RAILROADS MONOPOLIZED DOCK HANDLING AND INLAND TRANSPORTATION OF IRON ORE TO STEEL MILLS FROM THE MID1950S THROUGH THE EARLY 1980S USX SAID UNTIL NOW ALL THE RAILROADS EXCEPT B&LE HAD SETTLED USX SAID IT HAS APPEALED DAMAGES AWARDED TO OTHER PLAINTIFFS TOTALING 210 MILLION INCLUDING INTEREST THE OTHER PLAINTIFFS INCLUDE NATIONAL STEEL CORP WHICH IS ENTITLED TO 875 MILLION PLUS INTEREST WHEELINGPITTSBURGH CORP 679 MILLION AND SHARON SPECIALTY STEEL INC 126 MILLION USX WILL PAY THE LTV SETTLEMENT IN TWO LUMP SUMS 200 MILLION BY DEC 29 AND ANOTHER FOR 175 MILLION BY FEB 28 THE REDUCED SETTLEMENT WILL ALLOW IT TO REVERSE AT LEAST 120 MILLION OF THE 500 MILLION IT SET ASIDE EARLIER THIS YEAR TO PAY FOR THE DAMAGES ALSO THE SETTLEMENT WILL REDUCE FOURTHQUARTER INTEREST EXPENSE FOR THE US STEEL GROUP THOSE RESULTS WILL BE REPORTED IN LATE JANUARY LTV WHICH EMERGED FROM BANKRUPTCY IN MAY WILL ACCOUNT FOR THE SETTLEMENT AS AN EXTRAORDINARY GAIN IN THE FOURTH QUARTER 9312010136 931201 CHEVRON PLANS TO INVEST AT LEAST 600 MILLION IN PROJECTS IN NIGERIA SAN FRANCISCO CHEVRON CORP APPARENTLY UNFAZED BY THE CONTINUING POLITICAL TURMOIL IN NIGERIA PLANS TO INVEST AT LEAST 600 MILLION IN OIL AND NATURALGAS PROJECTS IN THAT COUNTRY OVER THE NEXT 10 YEARS CHEVRON WILL OPERATE AND OWN A 40 STAKE IN TWO NEW PROJECTS WITH AN ESTIMATED OVERALL PRICE TAG OF MORE THAN 15 BILLION THE LATEST SPENDING PROJECTIONS DISCLOSED BY THE HEAD OF CHEVRON'S NIGERIAN OPERATIONS AT AN INDUSTRY CONFERENCE ARE ABOUT 50 HIGHER THAN FIGURES THE COMPANY PREVIOUSLY DISCLOSED TO ANALYSTS AND OTHER OUTSIDERS THE COMPANY'S STEPPEDUP INTEREST IN NIGERIA COINCIDES WITH EFFORTS BY SEVERAL AFRICAN COUNTRIES IN CONJUNCTION WITH THE WORLD BANK TO ENHANCE NATURALGAS PRODUCTION AND DISTRIBUTION IN THE REGION IN NIGERIA ALONE CHEVRON PLANS TO BUILD AND OPERATE A 1 BILLION PROJECT THAT WILL INCLUDE FACILITIES TO GATHER COMPRESS AND STORE GAS ASSOCIATED WITH CONTINUING CRUDEOIL PRODUCTION THE FIRST PHASE OF THE PROJECT INCLUDING AN OFFSHORE LIQUEFIED PETROLEUM GAS STORAGE AND OFFLOADING FACILITY IS SCHEDULED TO GO INTO OPERATION BY MID1996 CHEVRON PREVIOUSLY SAID THAT THE INITIAL CONSTRUCTION PHASE WOULD COST ABOUT 570 MILLION BUT THE COMPANY DIDN'T PROJECT COSTS PAST THE MID1990S THE GAS PROJECT IS PART OF THE COMPANY'S LONGTERM STRATEGY TO FOCUS ON BUILDING UP ITS INTERNATIONAL GAS RESERVES THE WORLD BANK IS EXPECTED TO HELP FINANCE NIGERIA'S SHARE OF THE PROJECT CHEVRON OFFICIALS ALSO INDICATED THAT THE COMPANY IS BIDDING TO DEVELOP A NATURALGAS PIPELINE THAT WOULD LINK NIGERIA GHANA BENIN AND TOGO IN ADDITION CHEVRON OFFICIALS PREVIOUSLY SAID THE COMPANY AND ITS PARTNER THE NIGERIAN GOVERNMENT INTEND TO SPEND ANOTHER 560 MILLION TO INCREASE OIL PRODUCTION FROM NIGERIAN FIELDS IN WHICH THE COMPANY HAS A 40 INTEREST NIGERIA'S STATEOWNED PETROLEUM COMPANY HAS THE REMAINING INTEREST IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CHEVRON SHARES CLOSED AT 86875 UP 125 9312010135 931201 FOREIGN EXCHANGE ECONOMIC DATA GIVE DOLLAR BIG BOOST BUT PROFITTAKING CUTS GAIN ON MARK BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR CLIMBED AGAINST THE MARK TUESDAY AFTER THE RELEASE OF SOME EXCELLENT US ECONOMIC NEWS BUT MONTHEND PROFITTAKING QUICKLY EMERGED LEAVING THE DOLLAR WITH ONLY A MODERATE GAIN FOR THE DAY STERLING ALSO SHOWED IMPRESSIVE STRENGTH AGAINST THE GERMAN CURRENCY RALLYING AFTER THE UK BUDGET STATEMENT PROMISED TO TRIM THE DEFICIT WITHOUT RAISING TOO MANY TAXES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17150 MARKS UP FROM 17080 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10908 YEN DOWN FROM 10920 YEN STERLING WAS TRADING AT 14860 DOWN FROM 14895 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10893 YEN AND AT 17158 MARKS THE DOLLAR GAINED ALMOST A PFENNIG DURING MORNING TRADING IN NEW YORK JUST AFTER THE RELEASE OF TWO SURPRISINGLY STRONG READINGS ON US CONSUMER CONFIDENCE AND THE MANUFACTURING SECTOR BUT TRADERS NOTED THAT THE US CURRENCY RAN OUT OF STEAM JUST AS QUICKLY AS IT APPROACHED A KEY TECHNICAL LEVEL AT 17180 MARKS PROMPTING INVESTORS WHO HAD RIDDEN THE DOLLAR HIGHER DURING NOVEMBER TO TAKE PROFITS THEY WERE INCREDIBLE NUMBERS FOR CRYING OUT LOUD SAID VICTOR POLCE VICE PRESIDENT AND FOREIGNEXCHANGE MANAGER AT COMMERZBANK IN NEW YORK THE DOLLAR SHOULD BE A LOT HIGHER THAN WHERE WE ARE NOW HE SAID ADDING WE JUST RAN INTO MAJOR RESISTANCE THE CONFERENCE BOARD A NEW YORKBASED BUSINESSRESEARCH GROUP SAID ITS CONSUMER CONFIDENCE INDEX ROSE TO 712 IN NOVEMBER UP SHARPLY FROM OCTOBER'S REVISED READING OF 605 THE RESULT FAR OUTPACED MARKET EXPECTATIONS AND THE BOARD ITSELF NOTED THAT AN IMPROVEMENT OF THIS MAGNITUDE HAS OCCURRED ONLY RARELY IN THE 25YEAR HISTORY OF THIS SURVEY PROGRAM AT THE SAME TIME THE PURCHASING MANAGEMENT ASSOCIATION OF CHICAGO ANNOUNCED THAT ITS INDEX OF BUSINESS ACTIVITY IN THAT AREA ROSE TO 653 IN NOVEMBER FROM 57 IN OCTOBER THE INDEX IS OFTEN VIEWED AS A HARBINGER OF THE BROADER NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDEX WHICH IS SCHEDULED FOR RELEASE WEDNESDAY A READING ABOVE 500 ON THE INDEX INDICATES A GENERAL EXPANSION IN THE MANUFACTURING SECTOR TRADERS WERE GENERALLY DISAPPOINTED THAT THE POSITIVE DATA DIDN'T GIVE THE DOLLAR MORE OF A BOOST BUT THEY PREDICTED THAT OTHER ECONOMIC REPORTS SLATED FOR RELEASE LATER THIS WEEK COULD BOLSTER THE US CURRENCY ECONOMISTS EXPECT THE COMMERCE DEPARTMENT ON WEDNESDAY TO RAISE ITS ESTIMATE OF THIRDQUARTER ECONOMIC GROWTH TO 29 FROM A PREVIOUS ESTIMATE OF 28 AND FRIDAY WILL BRING THE KEY NONFARM PAYROLLS REPORT WHICH IS EXPECTED TO SHOW STRONG EMPLOYMENT GROWTH IN NOVEMBER THE STREET CONSENSUS STILL SEEMS TO BE THAT THE DOLLAR SHOULD GO HIGHER SAID STEVEN GEOVANIS MANAGING DIRECTOR FOR CURRENCY TRADING AT MERRILL LYNCH & CO IN NEW YORK 9312010134 931201 WHO'S NEWS PARK COMMUNICATIONS INC PARK COMMUNICATIONS INC ITHACA NY ROY H PARK JR 55 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PARK OUTDOOR ADVERTISING OF NEW YORK INC A BILLBOARD COMPANY WAS ELECTED A DIRECTOR OF THE TELEVISIONSTATION AND NEWSPAPER COMPANY FILLING A VACANCY ON THE SIXMEMBER BOARD CAUSED BY THE DEATH OF HIS FATHER ROY HAMPTON PARK WHO DIED OCT 25 9312010133 931201 WHO'S NEWS BEAR STEARNS IS SAID TO BE HIRING PIRIE EXCEO OF ROTHSCHILD INC TO SENIOR POST BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BEAR STEARNS COS PLANS TO HIRE ROBERT S PIRIE FORMER CHIEF EXECUTIVE OFFICER OF ROTHSCHILD INC TO A SENIOR INVESTMENTBANKING POST PEOPLE FAMILIAR WITH THE FIRM SAID THE HIRING OF MR PIRIE 59 YEARS OLD IS EXPECTED TO BE ANNOUNCED AS EARLY AS NEXT WEEK THE PEOPLE SAID MR PIRIE WHO REPRESENTED SEVERAL EUROPEAN ACQUIRERS OF US CORPORATIONS DURING THE 1980S MERGER CRAZE RESIGNED AS COCHAIRMAN AND CEO OF THE NM ROTHSCHILD & SONS UNIT EARLIER THIS YEAR THE APPOINTMENT OF MR PIRIE REFLECTS BEAR STEARNS'S PENCHANT FOR HIRING CONTROVERSIAL WALL STREET FIGURES DURING THE 1980S MR PIRIE REPRESENTED HANSON PLC AND SIR JAMES GOLDSMITH IN SEVERAL HOSTILE TAKEOVER FIGHTS BUT THE CLIENT MR PIRIE BECAME MOST CLOSELY ASSOCIATED WITH WAS ROBERT MAXWELL THE BRITISH FINANCIER WHOSE 1991 DROWNING PRECEDED THE UNRAVELING OF HIS MEDIA EMPIRE THE MAXWELL ASSOCIATION HURT MR PIRIE AT ROTHSCHILD SOME WALL STREET EXECUTIVES SAY MR PIRIE'S APPOINTMENT COMES AS BEAR STEARNS TRIES TO BEEF UP ITS INVESTMENTBANKING GROUP BEAR STEARNS HAD BEEN AMONG THE FINALISTS IN A BIDDING CONTEST TO HIRE JOSEPH PERELLA A WALL STREET MERGER STAR WHO LAST MONTH WAS SNARED BY MORGAN STANLEY GROUP INC LONG KNOWN AS A TRADING POWERHOUSE BEAR STEARNS HAS A 34 MARKET SHARE OF ALL GLOBAL STOCK AND BOND UNDERWRITINGS THIS YEAR THROUGH SEPTEMBER ACCORDING TO SECURITIES DATA CO BEAR STEARNS'S MARKET SHARE AS AN ADVISER ON COMPLETED GLOBAL M&A DEALS WAS 21 IN THE SAME PERIOD SECURITIES DATA SAYS IN HIS NEW ROLE MR PIRIE WILL BE A SENIOR INVESTMENT BANKER RESPONSIBLE FOR DRUMMING UP NEW BANKING BUSINESS HE ALSO WILL BE APPOINTED TO BEAR STEARNS'S INVESTMENTBANKING COMMITMENT COMMITTEE WHICH SETS THE BANKING GROUP'S STRATEGY THE PEOPLE SAID HIS EMPHASIS WILL BE IN M&A PARTICULARLY INTERNATIONAL SAYS A BEAR STEARNS EXECUTIVE FAMILIAR WITH THE FIRM'S PLANS A BEAR STEARNS SPOKESWOMAN DECLINED TO COMMENT MR PIRIE COULDN'T BE REACHED TO COMMENT MR PIRIE HAD BEEN CHIEF EXECUTIVE AT ROTHSCHILD SINCE 1982 FOR NINE YEARS BEFORE THEN MR PIRIE WAS A PARTNER AT THE TAKEOVER LAW FIRM OF SKADDEN ARPS SLATE MEAGHER & FLOM SEPARATELY JOHN STEINHARDT A BEAR STEARNS BOARD MEMBER AND HEAD OF ITS CORPORATEBOND TRADING DEPARTMENT RECENTLY RESIGNED FOLLOWING A MISMARKED OR IMPROPERLY PRICED BOND POSITION BY A TRADER IN HIS GROUP THE PEOPLE SAID MR STEINHARDT 39 WASN'T RESPONSIBLE FOR THE MISMARKED TRADE BUT RESIGNED AFTER REFUSING TO TAKE A POLYGRAPH TEST WHEN SENIOR MANAGEMENT QUERIED HIM ON THE MATTER THE PEOPLE SAID MR STEINHARDT COULDN'T BE REACHED TO COMMENT BUT BEAR STEARNS EXECUTIVES SAY HE TOLD THEM HE RESIGNED TO SPEND MORE TIME WITH HIS FAMILY A SIXYEAR BEAR STEARNS VETERAN MR STEINHARDT IS CREDITED ON WALL STREET WITH BUILDING THE FIRM'S CORPORATEBOND BUSINESS INTO A BIG MONEYMAKER MR STEINHARDT HOLDS MORE THAN 121000 SHARES OF BEAR STEARNS STOCK ACCORDING TO A RECENT PROXY STATEMENT HE MADE ABOUT 25 MILLION IN THE FISCAL YEAR ENDED JUNE 30 THE PEOPLE SAID 9312010132 931201 WHO'S NEWS TENCOR INSTRUMENTS TENCOR INSTRUMENTS MOUNTAIN VIEW CALIF JON D TOMPKINS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF SEMICONDUCTOR EQUIPMENT WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR TOMPKINS 53 YEARS OLD FILLS A POST THAT HAS BEEN VACANT SINCE THE DEATH OF COMPANY FOUNDER KAREL URBANEK IN 1991 9312010131 931201 MERGERS OF HOSPITALS SURGE AMID PRESSURES TO CUT COSTS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL MERGER MANIA IS SWEEPING THROUGH THE NATION'S 5400 ACUTECARE HOSPITALS THE FLURRY OF HOSPITAL CONSOLIDATION IS PARTLY A RESPONSE TO PRESIDENT CLINTON'S PROPOSALS FOR HEALTHSYSTEM REFORM AS WELL AS MOREIMMEDIATE PRESSURES TO REDUCE COSTS AND DEAL WITH DECLINING OCCUPANCY RATES WE'RE SEEING HOSPITALS MERGE TO AVOID THE COSTS OF DUPLICATING SERVICES AND SO THEY CAN BE MORE RECEPTIVE TO THE NEEDS OF MANAGEDCARE ENTITIES SAYS DAN ROBLE A HEALTHCARE LAWYER AT ROPES & GRAY IN BOSTON THE STANDALONE HOSPITAL IS BECOMING AN ENDANGERED SPECIES SAYS PHIL BEAUCHAMP CHIEF EXECUTIVE OFFICER OF MEASE HEALTH CARE A 378BED HOSPITAL IN DUNEDIN FLA IN OCTOBER MEASE ANNOUNCED PLANS TO MERGE WITH A BIGGER HOSPITAL IN NEARBY CLEARWATER FLA THE MERGER COULD SAVE AS MUCH AS 80 MILLION OVER FIVE YEARS MR BEAUCHAMP ESTIMATES AS HOSPITALS COMBINE THE IMPACT ON PATIENT CARE IS LIKELY TO BE MIXED PATIENTS MAY FACE GREATER TRAVEL TIMES IF MERGED HOSPITALS CONSOLIDATE OR CLOSE SOME SPECIALTY WARDS HOWEVER SOME COMBINED DEPARTMENTS MAY DELIVER BETTER CARE ESPECIALLY IN AREAS SUCH AS HEART SURGERY WHERE HIGH VOLUMES ARE ASSOCIATED WITH HIGH QUALITY A CLEAR GAUGE OF MERGER TRENDS COMES FROM THE JUSTICE DEPARTMENT WHICH MONITORS FILINGS BY HOSPITALS THAT PLAN TO COMBINE FOR THE YEAR ENDED SEPT 30 THERE WERE 56 SUCH FILINGS MORE THAN DOUBLE THE 21 FOR FISCAL 1992 THE NEW FISCAL YEAR LESS THAN TWO MONTHS OLD HAS HAD 13 SUCH FILINGS MANY MORE HOSPITAL MERGERS MAY LIE AHEAD WHEN HOSPITALS & HEALTH NETWORKS MAGAZINE LAST SUMMER SURVEYED 402 CHIEF EXECUTIVE OFFICERS OF HOSPITALS IT FOUND THAT FEWER THAN HALF EXPECTED THEIR INSTITUTIONS TO BE UNTOUCHED BY CONSOLIDATION OVER THE NEXT FIVE YEARS SOME 22 OF THE CEOS EXPECTED TO MAKE AN ACQUISITION AND 29 EXPECTED TO BE INVOLVED IN A MERGER OR SEE THEIR INSTITUTIONS ACQUIRED YOU COULD SEE 1000 HOSPITALS MERGE THEMSELVES OUT OF EXISTENCE BY THE END OF THE DECADE PREDICTS PHILLIP PROGER A HEALTHCARE ATTORNEY WITH JONES DAY REAVIS & POGUE IN WASHINGTON JONES DAY IS ADVISING ON A HALFDOZEN SUCH TRANSACTIONS SO FAR FEW INDIVIDUAL HOSPITAL DEALS HAVE ATTRACTED NATIONAL ATTENTION PROBABLY BECAUSE MOST US HOSPITALS DO BUSINESS IN A SINGLE TOWN AND ARE RUN ON A NOTFORPROFIT BASIS WITHOUT PUBLIC SHAREHOLDERS IN CENTRAL MASSACHUSETTS FOR EXAMPLE HOSPITALS IN THE NEARBY TOWNS OF LEOMINSTER AND FITCHBURG FINALLY MERGED THIS YEAR AFTER ABANDONING EARLIER TALKS IN 1984 AND 1991 WHAT TIPPED THE BALANCE FOR US WAS THE CONTINUING TREND TOWARD MANAGED CARE SAYS JOHN CLEMENTI A TRUSTEE OF HEALTHALLIANCE THE NEW PARENT COMPANY OF THE MERGED HOSPITALS LARGE COMPANIES WERE PRESSING THE TWO HOSPITALS TO LOWER COSTS AND PROVIDE FIXEDPRICE COVERAGE FOR LARGE GROUPS OF PATIENTS IT'S HARD FOR THOSE THINGS TO OCCUR IN TRADITIONAL HOSPITALS MR CLEMENTI SAYS THE MERGER HAS RUN INTO SOME TURBULENCE WITH HOSPITAL EMPLOYEES MAINLY BECAUSE OF CONCERNS ABOUT POSSIBLE JOB CUTS THAT'S A FREQUENT SOURCE OF TENSION BUT FRANK CRONIN CEO OF THE COMBINED HOSPITAL SAYS HE IS TRYING TO KEEP EMPLOYEES AND COMMUNITY GROUPS APPRISED OF PLANS TO TRIM COSTS AS THEY TAKE SHAPE EARLY SAVINGS ARE LIKELY TO COME FROM THE SIMPLE ECONOMIES OF COMBINING ADMINISTRATIVE AREAS MR CRONIN SAYS HE DECLINED TO SAY HOW MANY JOBS WOULD BE CUT FURTHER GAINS WILL FOLLOW HE SAYS IF THE UNIFIED HOSPITAL DECIDES TO CONSOLIDATE MEDICAL SERVICES SUCH AS PEDIATRICS OR OBSTETRICS AT ONE OF ITS TWO SITES IN NEW ORLEANS OFFICIALS OF TWO HOSPITALS IN MERGER TALKS EXPECT HEARTSURGERY SERVICES TO BENEFIT FROM CONSOLIDATION BYRON HARRELL CEO OF SOUTHERN BAPTIST HOSPITAL SAYS HIS HOSPITAL DOES ABOUT 170 HEART OPERATIONS A YEAR WHILE PROSPECTIVE PARTNER MERCY HOSPITAL DOES ABOUT 90 STUDIES REPEATEDLY HAVE FOUND THAT THE BUSIEST HEART UNITS ALSO HAVE THE LOWEST COMPLICATION RATES SO PUTTING THE TWO PROGRAMS TOGETHER SHOULD HELP ENSURE CONSISTENTLY HIGHQUALITY RESULTS MR HARRELL SAYS THE MERGER ALSO IS EXPECTED TO SAVE A QUICK 4 MILLION BY AVOIDING DUPLICATIVE PURCHASES OF EQUIPMENT SOUTHERN BAPTIST WAS THINKING OF BUYING A 2 MILLION LINEAR ACCELERATOR FOR CANCER TREATMENT WHILE MERCY WAS IN THE MARKET FOR A 18 MILLION MAGNETIC RESONANCE IMAGING MACHINE BECAUSE SOUTHERN BAPTIST ALREADY HAS AN MRI MACHINE THOUGH AND MERCY HAS A LINEAR ACCELERATOR OFFICIALS AT THE TWO HOSPITALS SAY THE PURCHASES WON'T BE NEEDED IF THEIR MERGER IS COMPLETED IN PUEBLO COLO THE MERGER OF ST MARYCORWIN REGIONAL MEDICAL CENTER AND PARKVIEW EPISCOPAL MEDICAL CENTER SHOULD SAVE 50 MILLION OVER THE NEXT FIVE YEARS HOSPITAL OFFICIALS ESTIMATE IN THAT MERGER THE TWO HOSPITALS BEGAN WITH CONFLICTING POLICIES ON ABORTION AND STERILIZATION BUT PARKVIEW HAS AGREED TO STOP PERFORMING BOTH SERVICES IN DEFERENCE TO ST MARYCORWIN WHICH IS A ROMAN CATHOLICRUN HOSPITAL PARKVIEW CEO MICHAEL PUGH SAYS THAT WASN'T A HARD ISSUE BECAUSE MOST ABORTIONS ARE PERFORMED ON AN OUTPATIENT BASIS HIS HOSPITAL HANDLED JUST FOUR ABORTIONS LAST YEAR THE PUEBLO MERGER PLAN IS UNDER INVESTIGATION BY THE FEDERAL TRADE COMMISSION WHICH IS CONCERNED THAT IT WOULD LESSEN COMPETITION IN THE CITY GENERALLY THOUGH HOSPITAL OFFICIALS SEE SIGNS THAT ANTITRUST SCRUTINY OF MERGERS IS RELAXING A LITTLE IN SEPTEMBER THE JUSTICE DEPARTMENT GAVE THE GOAHEAD TO A HOSPITAL MERGER IN DES MOINES IOWA THAT WILL GIVE THE UNIFIED HOSPITALS 52 OF THE LOCAL MARKET A SHARE THAT IN PAST YEARS MIGHT HAVE BEEN DEEMED OBJECTIONABLY HIGH SEPARATELY FEDERAL ANTITRUST AUTHORITIES INDICATED THAT THEY WON'T CHALLENGE MERGERS INVOLVING SMALL HOSPITALS AT MEASE HEALTH CARE IN FLORIDA OFFICIALS HAVE FOUND A WAY AROUND ANOTHER TRADITIONAL BARRIER TO MERGERS ACCOMMODATING THE CAREER AMBITIONS OF TWO CEOS MR BEAUCHAMP MEASE'S CHIEF EXECUTIVE IS TO TAKE THE NO 2 SPOT OF CHIEF OPERATING OFFICER ONCE A MERGER GOES THROUGH WITH LARGER MORTON PLANT HEALTH SYSTEM BUT MR BEAUCHAMP SAYS HE DOESN'T MIND TO ME BEING PART OF A LARGER ORGANIZATION MADE A LOT OF SENSE THE 49YEAROLD MR BEAUCHAMP SAYS HE ACKNOWLEDGES THAT THE CEO TITLE WAS VERY NEAR AND DEAR TO HIM AND HIS COUNTERPART AT MORTON HEALTH BUT HE SAYS OF THE PROPOSED MERGER THIS IS WHERE HEALTH CARE IS HEADED MY DECISION TO BE COO WASN'T EXCESSIVELY DIFFICULT 9312010130 931201 GM'S BUICK DIVISION UNVEILS RIVIERA COUPE PRICED AT UP TO 32756 FLINT MICH GENERAL MOTORS CORP'S BUICK DIVISION UNVEILED THE RIVIERA LUXURY COUPE THAT IT PLANS TO PUT ON SALE EARLY NEXT YEAR PROMISING A LOW PRICE A ROOMY INTERIOR A QUIET RIDE AND A SOLIDSOUNDING DOOR SLAM FOLLOWING THE LEAD OF THE RIVIERA'S SISTER CAR OLDSMOBILE'S FOURDOOR AURORA BUICK PRICED THE NEW MODEL TO UNDERCUT THE COMPETITION BUICK SAID THE NEW RIVIERA WILL HAVE A LIST PRICE RANGING FROM 27632 TO 32756 WELL BELOW THE PRICES OF SUCH LIKELY COMPETITORS AS FORD MOTOR CO'S 38050 LINCOLN MARK VIII AND TOYOTA MOTOR CORP'S 38000 LEXUS SC300 BUICK DIDN'T OFFER A RIVIERA THIS YEAR WHILE OLDSMOBILE HAS BEEN SHOWING OFF THE AURORA FOR THE PAST YEAR BUICK KEPT THE RIVIERA UNDER WRAPS UNTIL YESTERDAY THE CAR HAS A SLEEK SHAPE REMINISCENT OF THE JAGUAR ETYPE OF THE 1960S ITS SMOOTH ROUNDED LOOK ALSO IS SIMILAR TO THAT OF THE POPULAR NISSAN ALTIMA WE SET OUT TO GIVE COUPE BUYERS SOMETHING THEY HAVE ALWAYS BEEN DENIED ROOM IN THE FRONT SEAT IN THE REAR SEAT AND IN THE TRUNK EDWARD H MERTZ BUICK'S GENERAL MANAGER SAID INDEED REPORTERS CLIMBING IN AND OUT OF A DISPLAY MODEL FOUND THE CAR SURPRISINGLY SPACIOUS INSIDE BUICK OFFICIALS SAID GM DESIGNED THE CAR TO HAVE ONE OF THE TIGHTEST BODIES IN THE INDUSTRY WHICH WILL TRANSLATE INTO A QUIET RIDE WITH LESS VIBRATION AND BETTER HANDLING REPORTERS WEREN'T OFFERED TEST DRIVES AS FOR THE DOORSLAM BUICK SHOWED OFF A TEST SETUP IN A SPECIAL ACOUSTIC CHAMBER WE DIDN'T WANT IT TO SOUND TINNY ONE ENGINEER EXPLAINED WHEN REPORTERS LATER MADE A FEW TESTSLAMS OF THEIR OWN IT DIDN'T 9312010128 931201 INTERNATIONAL MERRETT TO LEAVE BUSINESS OF INSURANCE UNDERWRITING LONDON MERRETT HOLDINGS PLC FORMERLY ONE OF THE PROUDEST NAMES OF THE LLOYD'S OF LONDON INSURANCE MARKET IS PULLING OUT OF THE UNDERWRITING BUSINESS FOLLOWING A SLUMP IN INVESTOR CONFIDENCE CAUSED BY ITS PAST LOSSES THE COMPANY WELL KNOWN IN THE US WHERE MUCH OF ITS BUSINESS ORIGINATED SAID IT WILL SELL FOUR OF ITS SIX UNDERWRITING SYNDICATES AND EXPECTS TO CLOSE DOWN THE REMAINING TWO MERRETT'S PLAN TO RAISE CAPITAL BY LINKING UP WITH A GROUP OF US FINANCIAL GIANTS INCLUDING TRAVELERS CORP MARSH & MCLENNAN COS AND JP MORGAN & CO COLLAPSED A FEW WEEKS AGO AFTER TRAVELERS DECIDED NOT TO PARTICIPATE SUBSEQUENT ATTEMPTS TO KEEP THE MERRETT SYNDICATES AFLOAT WITH THE ASSISTANCE OF OTHER LLOYD'S AGENTS ALSO PROVED UNSUCCESSFUL LLOYD'S OFFICIALS SAID THEY EXPECT THE FINANCIAL IMPACT ON THE MARKET TO BE LIMITED AS MOST OF THE BUSINESS THAT WOULD HAVE GONE TO THE MERRETT SYNDICATES IS LIKELY TO STAY WITH THE SYNDICATES BEING SOLD OR BE CHANNELED ELSEWHERE IN THE MARKET 9312010127 931201 ENTERPRISE ALZHEIMER'S THEORY SHAKES SOME BUDDING STARTUPS UNPREDICTABILITY OF SCIENCE UNDERSCORES VULNERABILITY OF BIOTECH FIRMS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL A RADICAL NEW THEORY ABOUT THE CAUSES OF ALZHEIMER'S DISEASE COULD UNDERMINE THE BUSINESS PLANS OF MANY ENTREPRENEURIAL COMPANIES WORKING ON A CURE THE SURPRISE DEVELOPMENT REFLECTS THE FRAGILE NATURE OF THESE BIOTECH STARTUPS WHOSE ABILITY TO RAISE CASH DEPENDS HEAVILY ON UNPREDICTABLE SCIENCE LAST MONTH DUKE UNIVERSITY MEDICAL CENTER SCIENTISTS OFFERED A TENTATIVE EXPLANATION FOR ABOUT 60 OF ALL ALZHEIMER'S CASES THE RESEARCHERS SUGGESTED THAT INHERITING A CERTAIN BLOOD PROTEIN CAN SET OFF A CHEMICAL CASCADE DEEP INSIDE BRAIN CELLS CAUSING THEM TO COLLAPSE AND DISINTEGRATE THAT IN TURN SEEMS TO TRIGGER A LOSS OF MEMORY AND MENTAL FUNCTIONING AND ULTIMATELY DEATH THE RESEARCHERS ADDED THE DUKE RESEARCHERS LED BY ALLEN ROSES ARGUED THAT PREVAILING THEORIES DRIVING MOST ALZHEIMER'S RESEARCH THE CORE OF MOST ENTREPRENEURIAL STRATEGY MAY BE WRONG IF HIS THEORY PROVES CORRECT THE TENS OF MILLIONS THAT SMALL COMPANIES HAVE SPENT ON OTHER ALZHEIMER'S APPROACHES WILL HAVE LITTLE COMMERCIAL VALUE WARNS ROBERT FRIEDMAN BIOTECHNOLOGY ANALYST AT KIDDER PEABODY & CO AND YEARS OF DEVELOPMENT WORK BY STARTUPS SUCH AS ATHENA NEUROSCIENCES INC CEPHALON INC GLIATECH INC AND SIBIA INC COULD BE FOR NAUGHT EVEN IF THE ROSES THEORY DOESN'T PAN OUT IT CREATES A CREDIBILITY HURDLE MR FRIEDMAN CONTINUES IT MAY MAKE IT DIFFICULT AND COSTLY FOR SOME COMPANIES TO RAISE NEW MONEY MARK SIMON A BIOTECHNOLOGY ANALYST WITH ROBERTSON STEPHENS & CO IN SAN FRANCISCO AGREES THAT THE DUKE ANNOUNCEMENT HAS RAISED THE ANTE FOR SMALL BIOTECH COMPANIES WITH ALZHEIMER'S RESEARCH PROGRAMS ATHENA NEUROSCIENCES WHICH HAS RAISED 135 MILLION TO DEVELOP AN ALZHEIMER'S DRUG HAS SEEN ITS STOCK FALL NEARLY 20 SINCE DUKE'S ANNOUNCEMENT NOV 7 BUT JOHN GROOM CHIEF EXECUTIVE OFFICER OF THE SOUTH SAN FRANCISCO CALIF CONCERN BLAMES THE DROP ON MARKET CONDITIONS AND A RECENT 28 MILLION PUBLIC OFFERING HE SAYS TOO MUCH FUSS IS BEING MADE ABOUT DUKE'S PRELIMINARY FINDINGS NONETHELESS ATHENA ISN'T TAKING ANY CHANCES BASED ON PRIVATE BRIEFINGS ATHENA SAYS IT SIGNED UP DR ROSES IN OCTOBER AS AN EXCLUSIVE CONSULTANT THE COMPANY ALSO OBTAINED WORLDWIDE RIGHTS TO DEVELOP AN ALZHEIMER'S DIAGNOSTIC TEST BASED ON THE DUKE FINDINGS MR GROOM AGREES THAT PREMATURE SCIENTIFIC ANNOUNCEMENTS IN AN AREA AS COMPLEX AS ALZHEIMER'S WILL CONTINUE TO DISRUPT SMALL COMPANIES' BUSINESS PLANS CEPHALON NOW DEVELOPING AN ALZHEIMER'S DRUG AS PART OF LARGER RESEARCH AIMED AT NEUROLOGICAL DISEASES SAYS IT IS WATCHING THE ROSES EFFORT CLOSELY IF IT PROVES CORRECT THE COMPANY WILL RETOOL SAYS FRANK BALDINO CHIEF EXECUTIVE OFFICER OF THE WEST CHESTER PA COMPANY OTHER SMALL COMPANIES WORKING ON POSSIBLE ALZHEIMER'S DRUGS SAY THEY HAVE YET TO BE AFFECTED BY THE DUKE THEORY EVEN SO ANNOUNCEMENTS OF EARLYSTAGE RESEARCH ARE DESTABILIZING SAYS MICHAEL DUNN DIRECTOR OF BUSINESS DEVELOPMENT AT SIBIA BASED IN SAN DIEGO CORPORATE RESEARCHERS ARE OFTEN FORCED TO REEXAMINE STRATEGIES AND REDIRECT SCARCE RESOURCES FOR COMPETITIVE REASONS RATHER THAN FOR SCIENCE HE ADDS AT GLIATECH NOTHING HAS CHANGED SAYS KURT BRUNDEN DIRECTOR OF RESEARCH FOR THE CLEVELAND STARTUP WHICH CURRENTLY IS TRYING TO RAISE 10 MILLION IN A PRIVATE PLACEMENT BUT BECAUSE THE DUKE ANNOUNCEMENT POTENTIALLY HAS SUCH WIDE IMPACT HE SAYS WE ARE MONITORING THE SCIENCE INVOLVED TO SURVIVE IN THE FACE OF DIVERGENT ALZHEIMER'S THEORIES SMALL BIOTECH COMPANIES WILL HAVE TO SPEND MORE ON RESEARCH AND BECOME MORE DIVERSIFIED SAYS MR SIMON THE ANALYST THAT MEANS FINDING BIG CORPORATE PARTNERS THAT CAN PROVIDE CASH NEW TECHNOLOGIES AND NEW CHEMICALS INDEED IT IS THE UNPREDICTABLE NATURE OF SCIENCE THAT MAKES INVESTING IN THE BIOTECHNOLOGY BUSINESS SO RISKY DESPITE A RECENT SURGE IN NEW FINANCING PUBLIC FUNDING OF BIOTECHNOLOGY COMPANIES HAS FALLEN TO 15 BILLION THIS YEAR NEARLY 25 BELOW THE LEVEL FOR ALL OF LAST YEAR AND 44 OF 1991'S FULLYEAR LEVEL ACCORDING TO FEINSTEIN PARTNERS A CAMBRIDGE MASS MARKET RESEARCH CONCERN THE PAUCITY OF FUNDS IS STARTING TO FORCE BIOTECH RESEARCHERS TO ANNOUNCE PROGRESS AT EARLIER STAGES THAN IS TRADITIONAL BUT THE PACE OF SCIENTIFIC DISCOVERY AND THE SPEED WITH WHICH NEW RESEARCH COMES TO PUBLIC ATTENTION UNSETTLE BOTH BIOTECH COMPANIES AND THEIR INVESTORS NOTES STEVEN REIDY A VENTURE CAPITALIST WITH EUCLID PARTNERS NEW YORK MR REIDY BELIEVES WIDESPREAD PUBLICITY ABOUT EARLYSTAGE RESEARCH SUCH AS DUKE'S WILL HURT FUNDRAISING EFFORTS BY SMALL BIOTECH COMPANIES WITH FAR MORE ADVANCED RESEARCH EFFORTS IF PEOPLE KNEW ABOUT THIS STUFF FIVE YEARS AGO WOULD THESE COMPANIES HAVE BEEN FORMED HE ASKS IN GENERAL WE'LL NO LONGER INVEST IN COMPANIES WHERE THE BIOLOGY IS UNPROVEN BECAUSE UNCERTAINTIES ARE TOO GREAT SAYS VENTURE CAPITALIST BARRY WEINBERG A MANAGING PARTNER OF CW VENTURES IN NEW YORK IN THE CASE OF ALZHEIMER'S FOR EXAMPLE WE DON'T UNDERSTAND THE DISEASE OR ITS GENEALOGY HE SAYS YET A CURE FOR ALZHEIMER'S WOULD FIT WALL STREET'S IDEA OF A BLOCKBUSTER DRUG TREATING THE NATION'S FOUR MILLION ALZHEIMER'S PATIENTS CURRENTLY COSTS ABOUT 2 BILLION ANNUALLY ANY DRUG THAT CAN HELP ARREST THE COMPLEX SYMPTOMS OF ALZHEIMER'S PROMISES HUGE PROFITS THAT WAS WHAT CALIFORNIA VENTURE CAPITALIST KEVIN KINSELLA THOUGHT IN 1986 WHEN HE HELPED START ATHENA NEUROSCIENCES BASED ON WORK BY HARVARD SCIENTIST DENNIS SELKOE DR SELKOE AND SEVERAL OTHER SCIENTISTS FOCUSED ON THE NOTION THAT AN ALZHEIMER PATIENT'S BRAIN IS LITTERED WITH PLAQUE CONTAINING AN INSOLUBLE STICKY MATERIAL CALLED BETA AMYLOID THEY THEORIZED THAT BECAUSE THE PLAQUE KILLS NERVE CELLS BLOCKING PLAQUE FORMATION MIGHT PREVENT ALZHEIMER'S DISEASE MANY ENTREPRENEURIAL COMPANIES EXPLORING ALZHEIMER'S DESIGNED THEIR BUSINESS PLANS AROUND THE AMYLOID THEORY NOW THESE PLANS ARE THREATENED BY THE DUKE THEORY RIGHT OR WRONG THIS NEW ALZHEIMER'S THEORY SHOWS THE LEVEL OF UNCERTAINTY THAT BIOTECH STARTUPS AS WELL AS THE DRUG FIRMS THEY WORK WITH AND COMPETE AGAINST WILL INCREASINGLY FACE SAYS ROGER LONGMAN EDITOR OF IN VIVO AN INDUSTRY NEWSLETTER IN STAMFORD CONN 9312010126 931201 PROPOSAL TO EXPAND BOARD AT MARK CONTROLS FAILS SKOKIE ILL A SHAREHOLDER PROPOSAL TO EXPAND MARK CONTROLS CORP'S BOARD FAILED BUT DID WIN SOME SUPPORT AND NOW THE CHIEF EXECUTIVE OFFICER SAYS HE'LL TALK WITH BIG HOLDERS ABOUT ADDING ONE OR TWO NEW BOARD MEMBERS THE DEFEATED MEASURE WAS SPONSORED BY EUCALYPTUS INVESTMENTS LTD AN OFFSHORE GROUP CONTROLLED BY A HONG KONG FAMILY THAT BOUGHT A 9 STAKE IN THE INDUSTRIALPARTS COMPANY IN 1990 THE EUCALYPTUS INVESTORS WANT THE COMPANY TO SELL ITS VALVE BUSINESS WHICH GENERATED MORE THAN HALF OF ITS 1992 SALES OF 862 MILLION VALVE SALES HAVE RECENTLY DECLINED BUT MANAGEMENT CONTENDS THE UNIT IS POISED TO RECOVER FROM A CYCLICAL DOWNTURN THE MEASURE TO EXPAND THE BOARD DREW SUPPORT FROM MORE THAN A THIRD OF ALL HOLDERS ACCORDING TO GEORGESON & CO PROXY SOLICITORS HIRED BY EUCALYPTUS NO INDEPENDENT VERIFICATION OF THE NUMBERS IS POSSIBLE WILLIAM BENDIX MARK CONTROLS CHIEF EXECUTIVE SAID COMPANY POLLS INDICATED FEWER THAN 30 OF HOLDERS SUPPORTED THE MEASURE NONETHELESS MR BENDIX SAID THE COMPANY IS CONSIDERING ADDING AS MANY AS TWO NEW OUTSIDE DIRECTORS AND WE WILL BE WORKING WITH ALL OUR LARGE SHAREHOLDERS TO IDENTIFY CANDIDATES HOLDERS MORE SOUNDLY DEFEATED A NONBINDING RESOLUTION ASKING THE BOARD TO HIRE AN INVESTMENT BANKER TO EXPLORE SELLING ALL OR PART OF THE COMPANY 9312010125 931201 MEMOREX IS EXPECTING APPROVAL BY CREDITORS FOR DEBTSWAP PLAN IRVING TEXAS MEMOREX TELEX NV SAID IT IS CONFIDENT A PLAN TO CONVERT INTO EQUITY 850 MILLION OF THE COMPANY'S 950 MILLION IN LONGTERM DEBT WILL BE APPROVED BY CREDITORS MEMOREX TELEX IS BASED IN THE NETHERLANDS AND IS A SUPPLIER OF NETWORKING AND INFORMATIONSTORAGE PRODUCTS AND SERVICES THE COMPANY HAS A US UNIT BASED IN IRVING THE COMPANY HAS THREE MAJOR GROUPS OF CREDITORS SENIOR NOTEHOLDERS TRANCHE B HOLDERS AND TRANCHE A HOLDERS THE COMPANY HASN'T BEEN ABLE TO PAY ITS CREDITORS AND IS PLANNING THE DEBTTOEQUITY CONVERSION AS PART OF A SOCALLED PREPACKAGED BANKRUPTCY PROCEEDING MEMOREX SAID THE REMAINING 100 MILLION OF LONGTERM DEBT WILL BE CONVERTED INTO A NEW FIVEYEAR TERM LOAN AND A SIGNIFICANT PORTION OF THE DEBT WILL BE FORGIVEN IF REPAID AHEAD OF SCHEDULE THE DEBTRESTRUCTURING PLAN WILL REDUCE ANNUAL INTEREST EXPENSE BY MORE THAN 85 MILLION THE COMPANY SAID MEMOREX SAID MORGAN GUARANTY TRUST CO ADMINISTRATIVE AGENT FOR THE WORKING CAPITAL AND TERM DEBT INFORMED THE COMPANY THAT IT HAS INDICATIONS OF SUPPORT FROM HOLDERS OF MORE THAN 78 OF TRANCHE A DEBT THE COMPANY SAID THE STEERING COMMITTEE OF THE TRANCHE B LENDERS REPORTED SUPPORT FROM MORE THAN 75 OF TRANCHE B DEBT MEMOREX SAID ITS LARGEST SENIOR NOTEHOLDER APOLLO ADVISORS LP AND OTHER NOTEHOLDERS REPRESENTING A TOTAL OF 55 IN PRINCIPAL HAVE ALSO SAID THEY WILL VOTE IN FAVOR OF THE COMPANY'S PLAN THE COMPANY SAID IT WILL BEGIN SOLICITATION OF VOTES FOR APPROVAL SHORTLY AND AFTER RECEIVING APPROVAL WILL SEEK TO HAVE THE PLAN CONFIRMED IN A PREPACKAGED PROCEEDING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE UNDER THE PLAN SENIOR NOTEHOLDERS WILL RECEIVE 65 OF THE COMPANY'S OUTSTANDING STOCK IMMEDIATELY FOLLOWING THE RESTRUCTURING WITH TRANCHE A LENDERS RECEIVING 20 AND TRANCHE B LENDERS 15 CURRENT COMMON SHAREHOLDERS WILL RECEIVE WARRANTS TO PURCHASE 4 OF MEMOREX'S COMMON STOCK AT 14 A SHARE THE COMPANY SAID WHICH IS EXPECTED TO BE IN EXCESS OF THE ANTICIPATED INITIAL TRADING PRICE OF THE COMPANY'S NEW COMMON STOCK 9312010124 931201 US TO ASK EUROPEAN HELP WITH MISSILEDEFENSE WASHINGTON THE US INTENDS TO ASK ITS EUROPEAN ALLIES TO HELP DEVELOP DEFENSES AGAINST BALLISTIC MISSILES AIDES TO DEFENSE SECRETARY LES ASPIN SAID MR ASPIN WILL DISCUSS THE ISSUE WHEN HE TRAVELS TO EUROPE NEXT WEEK TO MAKE FINAL PREPARATIONS FOR THE NORTH ATLANTIC TREATY ORGANIZATION SUMMIT MEETING SCHEDULED FOR JANUARY AT THAT MEETING THE US INTENDS TO INVITE NATO NATIONS TO SHARE THE COST BOTH DEVELOPING AND FIELDING BALLISTIC MISSILE DEFENSES THE EUROPEAN MOVE FOLLOWS TALKS EARLIER THIS YEAR WITH THE JAPANESE GOVERNMENT WHICH HAS BEEN WORRIED BY THE NORTH KOREAN MISSILE PROGRAM THERE IS CONSIDERABLE SENTIMENT IN CONGRESS FOR GREATER BURDENSHARING BY US ALLIES BALLISTIC MISSILE DEFENSE IS A POPULAR CANDIDATE BECAUSE IT ISN'T AN OFFENSIVE WEAPON IS EXTREMELY EXPENSIVE AND IS ONLY WEAKLY SUPPORTED BY CONGRESS ROBERT RANKINE A BALLISTIC MISSILE DEFENSE EXPERT AT TASC A DEFENSE CONSULTING CONCERN SAID HE EXPECTED THE ASPIN INITIATIVE TO BE RECEIVED WARMLY BY NATO WHEN THE REAGAN ADMINISTRATION MADE SIMILAR INQUIRIES A DECADE AGO HE NOTED IT GOT A MIXED RESPONSE BUT LATER EVENTS MOST NOTABLY THE PERSIAN GULF WAR AND THE PROLIFERATION OF SMALL MISSILES HAVE HEIGHTENED EUROPEAN INTEREST IN MISSILE DEFENSES HE SAID 9312010123 931201 AMERICAN EXPRESS PROJECTS SMALL RISE IN TRAVEL COSTS NEW YORK BUSINESS TRAVELERS WHO HAVE SEEN THEIR AIRLINE AND CARRENTAL BILLS SOAR THIS YEAR SHOULD FACE ONLY MODERATE PRICE INCREASES NEXT YEAR ACCORDING TO THE AMERICAN EXPRESS TRAVEL INDUSTRY TRENDS AND FORECAST FOR 1994 AMERICAN EXPRESS CO WHICH RUNS ONE OF THE NATION'S LARGEST TRAVEL AGENCIES PREDICTS THAT BUSINESS FARES WILL INCREASE ONLY 4 TO 6 NEXT YEAR THROUGH THE FIRST THREEQUARTERS OF 1993 BUSINESS FARES JUMPED 21 FROM A YEAR EARLIER THE HUGE INCREASE THIS YEAR WAS PARTLY DUE TO THE INTENSE FARE WARS IN THE SUMMER OF 1992 AMERICAN EXPRESS ESTIMATES THAT BY YEAREND AVERAGE BUSINESS TICKET PRICES WILL HAVE ONLY INCREASED 10 TO 12 FROM LAST YEAR AIRLINES OF COURSE WOULD LIKE TO RAISE TICKET PRICES FURTHER NEXT YEAR BUT AMERICAN EXPRESS SAID THAT COMPETITION FROM LOWCOST CARRIERS AND ONLY SLIGHT INCREASES IN PASSENGER DEMAND WILL RESTRAIN FARES HIGH OPERATING COSTS WILL ALSO COMPEL AIRLINES TO REDUCE CORPORATE DISCOUNTS TO 5 TO 15 NEXT YEAR COMPARED WITH 35 TO 45 IN PAST YEARS CARRENTAL COMPANIES PUSHED THROUGH 15 PRICE INCREASES THIS YEAR AND LAST YEAR BUT AMERICAN EXPRESS FORECASTS THAT NEXT YEAR'S INCREASE WILL ONLY BE 3 TO 4 SOFT DEMAND AND FIERCE COMPETITION WILL KEEP RATES IN CHECK HOTEL RATES SHOULD INCREASE 2 TO 3 NEXT YEAR IT WOULD BE THE FIRST TIME SINCE 1987 THAT ROOM RATES KEPT PACE WITH INFLATION 9312010122 931201 MAJOR MEXICAN BUS MAKER PLANS TO BUY MOTOR COACH PHOENIX CONSORCIO G GRUPO DINA SA AGREED TO BUY MOTOR COACH INDUSTRIES INTERNATIONAL INC A PHOENIXBASED FORMER UNIT OF DIAL CORP IN A 337 MILLION STOCK SWAP THE TRANSACTION WOULD COMBINE THE LARGEST US BUSMAKING COMPANY WITH ONE OF MEXICO'S BIGGEST BUS AND TRUCK MANUFACTURERS UNDER THE AGREEMENT 1672 OF A NEW CLASS OF DINA COMMON STOCK WOULD BE SWAPPED FOR EACH OF THE 201 MILLION COMMON SHARES OF MOTOR COACH WHICH WENT PUBLIC IN AUGUST THE COMPANIES SAID THAT THE PRICE REPRESENTS A 25 PREMIUM FROM THE 13375 AVERAGE OF MONDAY'S HIGH AND LOW MOTOR COACH STOCK QUOTES CRAIG R LENTZSCH MOTOR COACH'S EXECUTIVE VICE PRESIDENTFINANCE SAID THE TRANSACTION IS SUBJECT TO COMPLETION OF A DEFINITIVE AGREEMENT REGULATORY AND SHAREHOLDER APPROVAL AND TERMINATION OR AMENDMENT OF CERTAIN AGREEMENTS BETWEEN MOTOR COACH AND ITS 69OWNED CANADIAN UNIT MOTOR COACH INDUSTRIES LTD 9312010121 931201 TECHNOLOGY & HEALTH TESTS LINKING PCS CABLE TV LINES TO BE SLATED BY SEVERAL BIG FIRMS BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL MAJOR COMPANIES TODAY WILL ANNOUNCE TESTS LINKING PERSONAL COMPUTERS TO CABLE TV LINES THAT COULD OPEN A FAUCET OF INFORMATION SERVICES TO THE HOME INTEL CORP AND GENERAL INSTRUMENT CORP WILL DEMONSTRATE TECHNOLOGY TODAY THAT LETS HOME PCS USE CABLE LINES TO RETRIEVE DATA AS MUCH AS 1000 TIMES FASTER THAN OVER PHONE LINES ZENITH ELECTRONICS CORP IS ALREADY SELLING SIMILAR HARDWARE TO LINK CABLE SYSTEMS TO PCS AND AN ARRAY OF CABLE OPERATORS AND DATASERVICE VENDORS ARE ANNOUNCING CONSUMER TESTS OF THE TWO TECHNOLOGIES AT A TRADE SHOW THAT OPENS TODAY IN ANAHEIM CALIF THE CABLEPC CONNECTION COULD HASTEN MANY BENEFITS TOUTED AS PART OF A BROADER OVERHAUL OF EXISTING COMMUNICATIONS NETWORKS WITHOUT A MASSIVE CAPITAL INVESTMENT BY CABLE COMPANIES THOUGH INTEL AND GENERAL INSTRUMENTS AND OTHERS ALREADY ARE WORKING ON UPGRADING TVS FOR INTERACTIVE SERVICES PERSONAL COMPUTERS MAY MATERIALIZE EARLIER AS A MARKET THE MUCH TOUTED CONGRUENCE OF HIGHSPEED COMMUNICATIONS AND COMPUTING WILL INTERSECT AT THE PC LONG BEFORE ANYWHERE ELSE SAID ANDREW GROVE INTEL'S CHIEF EXECUTIVE OFFICER BY INCREASING PCS' COMMUNICATION SPEED FOR EXAMPLE DATA SERVICES MAY FIND IT FEASIBLE TO INCLUDE COMPUTERIZED PHOTOGRAPHS OF GOODS IN ELECTRONIC SHOPPING SERVICES AS WELL AS TO TRANSFER SOFTWARE PROGRAMS STEREO RECORDINGS AND OTHER MULTIMEDIA INFORMATION A PHOTO THAT REQUIRED 15 MINUTES TO BE TRANSFERRED OVER A PC MODEM USING PHONE LINES COULD TAKE JUST A FEW SECONDS USING THE NEW TECHNOLOGY INTEL AND GENERAL INSTRUMENTS SAY CABLE OPERATORS COMCAST CORP AND VIACOM INTERNATIONAL INC PLAN TO TEST A PROTOTYPE CABLE MODEM DEVELOPED BY INTEL AND GENERAL INSTRUMENTS THE TRIALS WILL INCLUDE DATA SERVICES PROVIDED BY AMERICA ONLINE INC AND PRODIGY SERVICES CO COMPUSERVE INC WORKING WITH CONTINENTAL CABLEVISION INC AND TELEPORT COMMUNICATIONS GROUP IS ANNOUNCING PLANS TO TEST DELIVERY OF COMPUSERVE'S INFORMATION SERVICE TO CONTINENTAL CABLE SUBSCRIBERS IN EXETER NH USING ZENITH'S HOMEWORKS CABLE MODEMS COX CABLE COMMUNICATIONS AND PRODIGY SERVICES LAST WEEK ANNOUNCED A SIMILAR TEST USING THE ZENITH TECHNOLOGY TO DELIVER PRODIGY'S SERVICE TO HOUSEHOLDS IN SAN DIEGO DIGITAL EQUIPMENT CORP AND TIMES MIRROR CABLE A UNIT OF TIMES MIRROR CO PLAN TO TEST A COMPUTERCABLE LINK FOR BUSINESSES IN THE PHOENIX AREA THERE IS A TREMENDOUS INCREASE IN INTEREST SAID JERRY PEARLMAN ZENITH'S CHAIRMAN AND CHIEF EXECUTIVE WE HAVE ORDERS FOR PRODUCTION QUANTITIES OF THIS STUFF SUGGESTING THAT SOME COMPANIES ARE PLANNING TO DEPLOY THE GADGETS NOT JUST TEST THEM MOST CONSUMERS WILL HAVE TO WAIT AWHILE CABLE COMPANIES ARE QUICKLY UPGRADING THEIR SYSTEMS TO LET INFORMATION FLOW TWO WAYS OVER THEIR NETWORKS BUT THAT CAPABILITY IS NOT EXPECTED TO BE WIDELY AVAILABLE UNTIL 1995 OR 1996 ZENITH HAS ACTUALLY BEEN SELLING VARIOUS CABLE MODEMS FOR ABOUT 10 YEARS BUT HAD LITTLE LUCK UNTIL THE INTERNET AND OTHER COMPUTERNETWORK SERVICES STARTED GETTING MORE PUBLIC ATTENTION MR PEARLMAN SAID MOST PC MODEMS SEND 2400 OR 9600 BITS OF INFORMATION A SECOND THE LATEST ZENITH MODEM PRICED AT UNDER 500 CAN TRANSFER DATA AT ABOUT 500000 BITS A SECOND THE INTELGENERAL INSTRUMENTS TECHNOLOGY IS EXPECTED TO OPERATE AT 10 MILLION BITS A SECOND GENERAL INSTRUMENTS IS KNOWN FOR MAKING CABLETELEVISION CONVERTER DEVICES PLACED ON TOP OF SETS INTEL THE LEADER IN MICROPROCESSOR CHIPS FOR PCS ALSO MAKES COMPUTER MODEMS MANY TECHNICAL ISSUES REMAIN TO BE SETTLED FOR EXAMPLE INTEL BASED IN SANTA CLARA CALIF AND GENERAL INSTRUMENTS BASED IN CHICAGO SAY THEY HAVE NOT DECIDED WHICH COMPANY WILL HANDLE MANUFACTURING IF THEY DECIDE TO SELL THE CABLE MODEMS AVRAM MILLER INTEL'S VICE PRESIDENT OF CORPORATE BUSINESS DEVELOPMENT SAID A KEY ISSUE WILL BE IMPROVING SECURITY TO PROTECT SENSITIVE INFORMATION OF CUSTOMERS AND SUPPLIERS 9312010120 931201 WHO'S NEWS CLINTON NOMINATES HALL TO FDIC WASHINGTON PRESIDENT CLINTON NOMINATED ANNE HALL CURRENTLY VICE PRESIDENT FOR CORPORATE AFFAIRS AT BANC ONE CORP TO SERVE ON THE BOARD OF THE FEDERAL DEPOSIT INSURANCE CORP IN ADDITION MR CLINTON ALSO RENOMINATED ANDREW HOVE TO SERVE AS THE BOARD'S VICE CHAIRMAN MR HOVE BECAME VICE CHAIRMAN OF THE FDIC'S FIVEMEMBER BOARD IN 1990 BUT HE HAS SERVED AS ACTING CHAIRMAN SINCE AUGUST 1992 MR CLINTON RECENTLY NOMINATED RICKI TIGERT A WASHINGTON BANKING LAWYER TO SERVE AS FDIC CHAIRMAN ALL MEMBERS OF THE FDIC BOARD MUST BE CONFIRMED BY THE SENATE THE OTHER TWO MEMBERS ARE BY LAW THE COMPTROLLER OF THE CURRENCY AND THE DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION 9312010119 931201 RETAILING SHARES TAKE HIT AS BIG INVESTORS BAIL OUT BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL BIG INVESTORS ARE BAILING OUT OF RECENTLY HOT RETAILING STOCKS BECAUSE THEY EXPECT TOMORROW'S SALES REPORTS TO SHOW A WEAKERTHANEXPECTED SELLING PACE FOR NOVEMBER SOME OF THE NATION'S BIGGEST NAMES WERE AMONG THE STOCKS HIT HARDEST YESTERDAY WALMART STORES FELL 7/8 TO 28 5/8 AND MAY DEPARTMENT STORES LOST 1 1/8 TO 42 3/8 BOTH STOCKS WERE DOWNGRADED TO HOLD FROM BUY BY PRUDENTIAL SECURITIES DAYTON HUDSON SANK 3 TO 71 3/8 GAP STORES LOST 5/8 TO 40 WALL STREET'S WORRIES ABOUT A DISAPPOINTING NOVEMBER ARE AT ODDS WITH SOME PREVIOUS PREDICTIONS FOR THE PERIOD WHICH INCLUDE SALES RUNG UP ON THE CRUCIAL FRIDAY AFTER THANKSGIVING SOME REPORTS SAID POSTHOLIDAY SHOPPING WAS STRONG IN MANY PARTS OF THE COUNTRY LAST WEEK BUT A NUMBER OF BIG INVESTORS AND ANALYSTS SAY THEY NOW THINK RETAILERS DIDN'T DO AS WELL AS THEY HAD HOPED OVER THE HOLIDAY WEEKEND IN PART BECAUSE OF BAD WEATHER IN THE MIDWEST AND SOUTHWEST THE GOOD REPORTS MAY HAVE BEEN A LITTLE OVERDONE SAID WAYNE HOOD A PRUDENTIAL ANALYST WE'RE STILL IN A PERIOD THAT'S MIXED WHERE YOU'LL SEE 4 TO 5 SAMESTORE SALES GAINS A YARDSTICK THAT EXCLUDES SALES GROWTH ATTRIBUTABLE SOLELY TO NEW STORES HE EXPECTS TOMORROW'S REPORTS TO SHOW AN INDUSTRY GAIN OF ONLY ABOUT 4 IN SAMESTORE SALES OFF FROM INCREASES OF 45 IN OCTOBER AND 53 IN SEPTEMBER AT WALMART MR HOOD THINKS SAMESTORE SALES ROSE ABOUT 6 COMPARED WITH EXPECTATIONS ON WALL STREET FOR INCREASES OF 6 TO 8 SEVERAL OTHER ANALYSTS EXPECT EVENSMALLER SAMESTORE SALES GAINS PERHAPS IN THE NEIGHBORHOOD OF 5 AT WALMART THE COMPANY THIS WEEK SAID ONLY THAT SALES WERE GENERALLY GOOD BUT NOT UP TO WALMART STANDARDS MAY DEPARTMENT STORES MR HOOD SAYS IS EXPECTED TO SHOW SAMESTORE SALES INCREASES OF ONLY 2 OR 3 COMPARED WITH 36 LAST YEAR IT'S NOT JUST THE MONTHLY SALES TALLY THAT HAS BIG INVESTORS WORRIED ABOUT RETAILERS' STOCKS MR HOOD AND A GROWING NUMBER OF INVESTORS NOW THINK THAT THE RETAIL GROUP AS A WHOLE HAS GOTTEN AHEAD OF ITSELF AND IS DUE FOR A SELLOFF RETAIL STOCKS AS A WHOLE DID WELL THROUGH THIS FALL AFTER LANGUISHING IN THE FIRST HALF OF THE YEAR THE RELATIVELY SHORTLIVED PARTY MAY BE ENDING MR HOOD SAYS WHILE HE SAYS THE CHRISTMAS SELLING SEASON MAY RECOVER FROM LAST WEEKEND'S SLOW START HE THINKS THE GROUP IS GETTING A LITTLE PRICEY IT IS TIME HE SAYS TO START SELECTIVELY DOWNGRADING COMPANIES WHOSE STOCKS REFLECT THE COMPANY'S FUNDAMENTALS AND IMPROVED HOLIDAY OUTLOOK FOR EXAMPLE WALMART IS SELLING AT 23 TIMES MR HOOD'S 1994 EARNINGS ESTIMATE OF 125 A SHARE THE STOCK IS UP 27 FROM ITS 52WEEK LOW TO MR HOOD THESE NUMBERS SIGNAL A GOOD TIME TO SELL WALMART MR HOOD HAS BEEN RIGHT ABOUT HIS PREDICTIONS FOR WALMART TWICE ALREADY THIS YEAR HE RECOMMENDED THAT CLIENTS SELL THE STOCK EARLIER IN THE YEAR WHEN IT WAS AROUND 30 THE STOCK THEN FELL TO AROUND 25 AT WHICH TIME HE PLACED A BUY RECOMMENDATION ON THE STOCK AGAIN WALMART'S STOCK THEN MOVED UP ALONG WITH THE REST OF THE GROUP THIS FALL INVESTORS SAY THEY EXPECT LIMP SALES REPORTS AT A HOST OF OTHER RETAILERS AS WELL ONE ESPECIALLY BEARISH ANALYST FOR A BIG INSTITUTIONAL INVESTOR SPECULATES THAT KMART MIGHT SHOW ONLY A 1 TO 2 GAIN IN NOVEMBER SAMESTORE SALES REPRESENTING A BIG DISAPPOINTMENT DAYTON HUDSON THIS INVESTOR PREDICTS WILL WEIGH IN WITH A 2 DROP IN SAMESTORE SALES MAINLY THE RESULT OF POOR RESULTS IN ITS MERVYN'S AND TARGET STORES WHILE LIMITED MIGHT POST A 2 DECLINE THERE ARE SOME MORE CHEERY NOTES FOR INVESTORS WHO CAN'T SEEM TO SHRUG OFF THE CHRISTMAS SPIRIT AND INSIST ON BUYING RETAIL STOCKS SAYS MR HOOD HE SAYS HE WOULD SELL WALMART IN FAVOR OF HOME DEPOT WHICH AT YESTERDAY'S CLOSE OF 41 1/2 OFF 3/4 IS TRADING AT LESS THAN 30 TIMES HIS 1994 ESTIMATE OF 140 A SHARE INVESTORS ALSO ARE FAVORABLY INCLINED TOWARD JC PENNEY WHICH IS TRADING AT 14 TIMES 1994 ESTIMATES RATHER THAN THE SKIMPY INCREASES IN SAMESTORE SALES OF OTHER RETAILERS PENNEY IS EXPECTED TO POST INCREASES OF ABOUT 11 WHICH MR HOOD SAYS IS ABOVE THE COMPANY'S OWN PLAN AND HIS ESTIMATE 9312010118 931201 AT&T PLANS FURTHER CUTS IN WORK FORCE COMPANY SETS REDUCTIONS AT LONGDISTANCE UNIT AS COMPETITION GROWS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO IS LAYING PLANS FOR A MAJOR WORKFORCE CUTBACK IN ITS CONSUMER LONGDISTANCE UNIT AS IT STRUGGLES TO FIGHT STIFF COMPETITION FROM MCI COMMUNICATIONS CORP THE REDUCTION COULD RUN AS HIGH AS 15 OR 4500 JOBS IN THE 32000MEMBER CONSUMER COMMUNICATION SERVICES UNIT SAID INDIVIDUALS CLOSE TO THE TELECOMMUNICATIONS GIANT THAT WOULD BE IN ADDITION TO ALREADY ANNOUNCED MOVES TO CUT AT&T'S FORCE OF 18000 OPERATORS AND SUPERVISORS BY ONETHIRD IN THE NEXT COUPLE OF YEARS AND TO ELIMINATE 7500 JOBS OR 12 OF THE PAYROLL AT THE NCR CORP UNIT BY EARLY NEXT YEAR OVERALL AT&T HAS CUT MORE THAN 100000 JOBS SINCE ITS 1984 BREAKUP MCI HAS LURED AWAY MILLIONS OF AT&T CUSTOMERS WITH ITS FRIENDS & FAMILY DISCOUNT PLAN BUT AT&T EXECUTIVES BLANCH AT TALK OF FURTHER PRICE CUTS THE COMPANY'S LONGDISTANCE REVENUE HAS FLATTENED DESPITE 5 ANNUAL GROWTH IN AT&T'S TRAFFIC THAT LEAVES THE COMPANY PRESSED TO CUT ITS COST STRUCTURE TO BETTER COMPETE WITH MCI AND RIVALS MCI IS GROWING AT THREE TIMES THE INDUSTRY RATE OR ABOUT 15 ANNUALLY WHILE NO 3 LONGDISTANCE CARRIER SPRINT CORP IS ALSO WINNING CUSTOMERS WITH ITS MOST DISCOUNT PLAN PRICES FOR LONGDISTANCE SERVICE HAVE FALLEN BY MORE THAN 50 SINCE AT&T'S BREAKUP AND BY TWO PERCENTAGE POINTS IN JUST THE LAST FEW MONTHS NOTED ROBERT B MORRIS III AN ANALYST AT GOLDMAN SACHS & CO BUT AT&T'S FAT PAYROLL ACTUALLY MAY OFFER A BENEFIT IT HAS A PLACE TO FURTHER CUT COSTS WHILE RIVALS ARE ALREADY LEANER IN A WAR OF ATTRITION THE FAT GUY WINS MR MORRIS SAID VICTOR PELSON CHAIRMAN OF AT&T GLOBAL OPERATIONS DECLINED TO COMMENT ON SPECIFIC CUTBACKS BUT INSISTED THAT AT&T'S OVERALL BUSINESS IS AS STRONG AS IT HAS EVER BEEN AND WE'RE BEING MORE PROACTIVE THAN WE'VE EVER BEEN AT MEETING COMPETITION HE ADDED WE ARE LOOKING OUT TWO OR THREE YEARS TO SEE WHAT ADJUSTMENTS MIGHT BE NEEDED IN THE COMPANY TO MEET CHANGES IN THE MARKETPLACE AT&T'S BOARD IN MIDOCTOBER APPROVED A BLUEPRINT LETTING ALL BUSINESS UNIT MANAGERS CUT JOBS WHERE THEY DEEM NECESSARY INCLUDING SEVERANCE OFFERS OF AS MUCH AS 35 WEEKS OF PAY AND A 20 BONUS FOR WORKERS WHO LEAVE AND AGREE TO FORGO SUING AT&T FOR COMPLAINTS SUCH AS AGE DISCRIMINATION MR PELSON SAID THE COMPANY HADN'T YET DETERMINED THE EXACT NUMBER OF JOBS IT WANTED TO CUT AT COMMUNICATIONS SERVICES AND A SPOKESMAN SAID IT MAY BE A COUPLE OF MONTHS BEFORE ANYBODY HAS A HANDLE ON THAT THE UNIT'S NEW PRESIDENT JOSEPH NACCHIO IS A VETERAN AT CUTTING COSTS WHEN HE HEADED THE BUSINESS LONGDISTANCE SERVICES UNIT HE CUT 2 BILLION OUT OF THE COST STRUCTURE AND TRIPLED OPERATING PROFITS SAID JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC MORE RECENTLY MR NACCHIO WHO TOOK THE REINS OF AT&T'S CONSUMER BUSINESS IN AUGUST HAS SAID AT&T WILL MATCH OR BEAT MCI'S PRICE CUTS OR COME UP WITH NEW SERVICES TO BLUNT MCI'S SAVVY MARKETING INITIATIVES MR NACCHIO BACKED HIS TOUGH STANCE RECENTLY BY REMOVING NW AYER AS THE LEAD AD AGENCY FOR AT&T'S 200 MILLION CONSUMER ACCOUNT AND SHIFTING MORE THAN HALF OF THE BILLINGS AND THE LEADERSHIP ROLE TO FCB LEBER KATZ PARTNERS AYER HAD BEEN PUSHING AT&T'S DISASTROUS I PLAN WHICH MR NACCHIO HAS KILLED IN FAVOR OF A NEW PLAN TO BE ANNOUNCED EARLY NEXT YEAR 9312010117 931201 INDUSTRY FOCUS SUPERCOMPUTER STARTUPS SPUTTER TOWARD THE ABYSS SOME PLAYERS FIND THE GOING TOUGH DUE TO GOVERNMENT CUTS COMPETITION BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL CRAY COMPUTER CORP'S CASHONHAND COULD RUN OUT BY NEXT MAY CLOSELY HELD THINKING MACHINES CORP PULLED THE PLUG ON AN INITIAL PUBLIC OFFERING AND KENDALL SQUARE RESEARCH CORP ONCE A HIGHFLIER IS TRYING TO EXPLAIN WHY IT REPORTED SALES FOR WHICH IT NEVER RECEIVED MONEY JUST WHEN SOME OF THE ENTREPRENEURIAL SUPERCOMPUTER COMPANIES WERE SUPPOSED TO START THRIVING TROUBLES ARE MULTIPLYING IN THIS SPECIALIZED BUT TECHNOLOGICALLY CRUCIAL CORNER OF THE COMPUTER INDUSTRY THIS MARKET WILL IMPLODE SAYS DEBRA GOLDFARB WHO FOLLOWS THE INDUSTRY FOR MARKET RESEARCHER INTERNATIONAL DATA CORP FRAMINGHAM MASS SEVERAL VENDORS COULD BE OUT OF THE MARKET ALMOST IMMEDIATELY WITHOUT GOVERNMENT AID SHE ADDS JOHN CARLSON CHAIRMAN OF CRAY RESEARCH INC SAYS WE'RE IN THE SHAKEOUT PERIOD IN THE NEXT COUPLE OF YEARS YOU'LL SEE A LOT FEWER COMPANIES WHILE APPLICATIONS FOR SUPERCOMPUTERS ARE BLOSSOMING MANY MAKERS WILL END UP BANKRUPT ACQUIRED OR CLOSED SUPERCOMPUTERS HAVE NEVER HAD MORE USES THEY ARE FINDING OIL UNDER PREVIOUSLY OPAQUE SALT DOMES IN THE GULF OF MEXICO THEY ARE MAPPING GENOMES THEY ARE PORING THROUGH NEWS CLIPPINGS FOR THE NATIONAL SECURITY AGENCY BUT A SERIES OF CALAMITIES HAVE HAMMERED THE INDUSTRY THE COLD WAR HAS ENDED HURTING DEFENSE AND INTELLIGENCE AGENCIES' SPENDING ON SUPERCOMPUTERS THE NEW ADMINISTRATION IS BOOSTING SPENDING ON COMPUTER COMMUNICATIONS FOR THE MASSES AT THE EXPENSE OF HIGHPERFORMANCE COMPUTING FOR THE ELITE AND THE PLETHORA OF COMPANIES HAS CREATED CUSTOMER CONFUSION AND VICIOUS PRICE COMPETITION ALMOST ALL ARE LOSING MONEY ON TOP OF THAT TWO BIG COMPANIES WITH VAST RESOURCES CRAY RESEARCH AND INTERNATIONAL BUSINESS MACHINES CORP HAVE DECIDED TO COMPETE AGGRESSIVELY IN THE 2 BILLIONAYEAR MARKET THE ENTREPRENEURS AND VENTURE CAPITALISTS WHO STARTED SOME INNOVATIVE SUPERCOMPUTER MAKERS COUNTED ON THE MARKET EXPLODING BEFORE THE GIANTS ENTERED CRAY RESEARCH BASED IN EAGAN MINN DOMINATES THE SUPERCOMPUTER MARKET WITH POWERFUL MACHINES COMBINING A FEW VERY LARGE PROCESSORS AND COSTING AS MUCH AS 30 MILLION EACH DURING THE 1980S A SLEW OF US AND EUROPEAN COMPANIES EMERGED WITH NEW DESIGNS THEY TIED TOGETHER HUNDREDS OR THOUSANDS OF CHEAP MICROPROCESSORS IN MASSIVELYPARALLEL PROCESSING OR MPP COMPUTERS THAT COST ONEFIFTH AS MUCH AS A CRAY C90 AND EXCEEDED IT IN SOME PERFORMANCE TESTS SEVERAL STARTUPS BLOSSOMED AS SCIENTISTS EXPERIMENTED WITH THE SYSTEMS AND THE DEFENSE DEPARTMENT SUBSIDIZED THE FIRMS' GROWTH BUT NOW FEDERAL SPENDING EARMARKED TO BUY SUPERCOMPUTERS IS SHRINKING CRAY RESEARCH SAID ITS ANNUAL US GOVERNMENT SALES DROPPED BY ABOUT 100 MILLION IN THE PAST FOUR YEARS A BIG HIT FOR A COMPANY WITH 7976 MILLION IN REVENUE LAST YEAR CRAY UNVEILED ITS FIRST MPP COMPUTER THE T3D IN SEPTEMBER THE PRICEY MACHINE WORKS ONLY WITH A TRADITIONAL CRAY ALREADY CRAY HAS NINE SALES OR ORDERS MORE SURPRISING TO THE INDUSTRY IBM STARTED SHIPPING ITS FIRST PARALLEL SUPERCOMPUTER IN SEPTEMBER JACK DONGARRA AN OAK RIDGE NATIONAL LABORATORY RESEARCHER WHO TESTS COMPUTER SPEED SAYS IBM'S POWERPARALLEL SYSTEM WITH 64 PROCESSORS MATCHES PERFORMANCE LEVELS OF VENDORS THAT HAVE BEEN AROUND FOR YEARS IBM SAYS IT HAS SHIPPED 35 OF ITS POWERPARALLEL SYSTEMS SINCE SEPTEMBER AND EXPECTS 30 MORE ORDERS BY THE END OF THE YEAR BIG NUMBERS IN AN INDUSTRY WITH UNDER 600 UNITS SHIPPED ALL OF LAST YEAR MOST ARE 16PROCESSOR SYSTEMS THAT COST ABOUT 500000 BUT IT HAS A FEW ORDERS FOR A 128PROCESSOR SYSTEMS COSTING MORE THAN 3 MILLION EACH IBM CAN COMPETE EFFECTIVELY FOR ALMOST EVERY SUPERCOMPUTER JOB FOR EXAMPLE RICHARD FISHMAN PRESIDENT OF THE MPP PIONEER THINKING MACHINES OF CAMBRIDGE MASS COMPLAINS IBM WON A BIG CONTRACT FOR A NEW DEFENSE DEPARTMENT COMPUTER ON MAUI HAWAII HE SAYS IT WAS WIRED BY IBM'S WASHINGTON LOBBYISTS AND IBM VIRTUALLY BOUGHT THE BUSINESS BY SLASHING ITS PRICES A SPATE OF WELLPUBLICIZED PROBLEMS IS WORRYING CUSTOMERS ABOUT MANY OF THE SMALL VENDORS AS WELL THINKING MACHINES IS LOSING MONEY FOR THE THIRD STRAIGHT YEAR AND HOPES SALES WILL EQUAL LAST YEAR'S 90 MILLION IT REPLACED ITS CHIEF EXECUTIVE AFTER INVESTMENT BANKERS SAID THE COMPANY WASN'T IN SHAPE TO MAKE AN INITIAL PUBLIC OFFERING THINKING MACHINES SAYS IT HAS RAISED ENOUGH MONEY FROM ITS PRIVATE INVESTORS TO KEEP GOING AND EXPECTS PROFITS AND A PUBLIC OFFERING NEXT YEAR LAST MONTH PRIVATELY HELD MASPAR COMPUTER CORP SUNNYVALE CALIF FIRED 25 OF ITS WORK FORCE AND BROUGHT IN A NEW PRESIDENT TO FIND A PROFITABLE NICHE STRATEGY CRAY COMPUTER OF COLORADO SPRINGS COLO THE COMPANY SEYMOUR CRAY SPUN OUT OF CRAY RESEARCH TO BUILD A NEW SUPERCOMPUTER HAS YET TO SELL ONE SINCE KENDALL SQUARE RESEARCH WALTHAM MASS RECENTLY DISCLOSED THAT IT PLANS TO RESTATE PREVIOUSLY REPORTED RESULTS SHAREHOLDERS ARE SUING THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING AND ITS STOCK HAS PLUNGED CONVEX COMPUTER CORP RICHARDSON TEXAS REPORTED A LOSS LAST QUARTER AND EXPECTS CONTINUED LOSSES UNTIL IT STARTS MAKING MONEY ON ITS FIRST MASSIVELY PARALLEL COMPUTERS WHICH WILL BE SHIPPED IN VOLUME STARTING NEXT SUMMER COMPANIES FIGHTING FOR SURVIVAL ARE SLASHING PRICES FOR ANY SALE PROVIDING PROFITLESS PROSPERITY FOR THE WINNERS AND THE MARKET FOR THE MOST POWERFUL MACHINES HAS DRIED UP WILLIAM LANE THE NEWLY NAMED DIRECTOR OF THE NATIONAL SCIENCE FOUNDATION SAYS THERE IS A TREND AWAY FROM BIG PROJECTS TOTALLY SUPPORTED BY TAX MONEY MAKING SMALLER SUPERCOMPUTERS ISN'T FOOLPROOF EITHER RESEARCHERS KEEP FIGURING OUT WAYS TO LINK UP WORKSTATIONS IN CLUSTERS TO DO SUPERCOMPUTERTYPE WORK ALMOST ALL THE MAKERS OF MASSIVELYPARALLEL SYSTEMS ARE LOOKING TO THE COMMERCIAL MARKET FOR FUTURE GROWTH THEY EXPECT COMPANIES TO BUY SUPERCOMPUTERS TO ANALYZE DATABASES OF CUSTOMER AND PRODUCT INFORMATION AND TO SPOT TRENDS AMERICAN EXPRESS CO HAS BEEN USING A THINKING MACHINES SUPERCOMPUTER TO ANALYZE ITS MAILING LIST AMR CORP THE PARENT OF AMERICAN AIRLINES IS EXPERIMENTING WITH KENDALL SQUARE COMPUTERS BUT AMERICAN TELEPHONE & TELEGRAPH CO'S NCR CORP UNIT ALREADY HAS A BIG LEAD IN THE DATAANALYSIS MARKET AND MANY CUSTOMERS ARE LIKELY TO CONSIDER IBM'S MPP MACHINES SINCE THEY ALREADY KEEP THEIR DATA ON IBM MAINFRAMES ONE POTENTIALLY HUGE OPPORTUNITY LOOMS ON THE HORIZONVIDEO SERVERS THAT WILL STORE ALL THE MOVIES AND TELEVISION SHOWS THAT WILL BE SENT TO CUSTOMERS OF PHONE AND CABLETV COMPANIES WHO WANT VIDEO ON DEMAND MPP SUPERCOMPUTERS ARE UNIQUELY WELL SUITED FOR THE TASK THE VIDEO SERVER COULD BE OUR SHIP COMING IN SAYS RONALD BUCK VICE PRESIDENT OF MARKETING AT NCUBE A FOSTER CITY CALIF MAKER OF MPP MACHINES WE'RE IN THE RIGHT SPOT AT THE RIGHT TIME 9312010116 931201 CREDIT MARKETS BOND PRICES PLUNGE AS DATA ON MANUFACTURING CONSUMER CONFIDENCE SIGNAL ECONOMIC PICKUP BY THOMAS T VOGEL JR AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GOOD NEWS FOR THE ECONOMY WAS BAD NEWS FOR THE BOND MARKET YESTERDAY TWO REPORTS INDICATING A SHARP JUMP IN MANUFACTURING ACTIVITY IN THE CHICAGO AREA AND IN CONSUMER CONFIDENCE NATIONALLY SENT BOND PRICES PLUNGING BOND INVESTORS OFTEN REACT NEGATIVELY TO NEWS OF A SURGING ECONOMY BECAUSE THEY FEAR SUCH GROWTH WILL LEAD TO RISING INTEREST RATES AND HIGHER INFLATION THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 7/8 POINT OR MORE THAN 875 FOR A BOND WITH A 1000 FACE VALUE TO 99 8/32 ITS YIELD WHICH MOVES IN THE OPPOSITE FROM ITS PRICE ROSE TO 630 FROM 623 ON MONDAY THE PRICES OF OTHER TREASURY MATURITIES ALSO PLUNGED WITH THE 10YEAR NOTE DROPPING MORE THAN 1/2 POINT TO 99 13/32 TO YIELD 581 COMPARED WITH 574 ON MONDAY PEOPLE ARE BUYING AND SELLING THE MARKET WITH VERY LITTLE CONVICTION SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT CS FIRST BOSTON INC AS SOON AS THEY GET A LITTLE RATTLED THEY JUMP OUT OF THE MARKET HE SAID MEANWHILE INVESTORS WERE EAGERLY LINING UP LATE YESTERDAY TO PARTICIPATE IN A PLANNED 950 MILLION TWOPART JUNKBOND OFFERING FROM VALLEY FASHIONS CORP WHICH EMERGED FROM BANKRUPTCY PROTECTION JUST 14 MONTHS AGO BOND YIELDS HAVE BEEN RISING OVER THE PAST FEW WEEKS THANKS TO GROWING SIGNS THAT THE US ECONOMY IS PICKING UP STEAM THE PRICE OF THE 30YEAR TREASURY BOND FOR EXAMPLE WAS MORE THAN SEVEN POINTS LOWER YESTERDAY THAN IN MIDOCTOBER THAT WOULD BE A LOSS OF 70 FOR A BOND WITH A 1000 FACE VALUE FOR INVESTORS WHO BOUGHT THEN AND SOLD YESTERDAY BOND INVESTORS ARE TAKING IT ON THE CHIN BECAUSE FASTER ECONOMIC GROWTH COULD MEAN HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN MANY INVESTORS ARE HEDGING AGAINST THE ECONOMY'S BEING STRONGER THAN EXPECTED IN THE FIRST QUARTER OF NEXT YEAR SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC I'M NOT CHANGING MY ESTIMATES FOR THE FIRST QUARTER HE SAID BUT I'M NOT AS CERTAIN AS I WAS A MONTH OR TWO AGO THAT ANNUAL GROWTH IN THE GROSS DOMESTIC PRODUCT WILL BE BELOW 3 IN 1994 ANALYSTS SAID YESTERDAY'S REPORTS INDICATE THE ECONOMY HAS SHIFTED INTO A HIGHER GEAR AS THE YEAR DRAWS TO A CLOSE I THINK WE'VE CAUGHT A TAILWIND SAID BRIAN WESBURY AN ECONOMIST AT GRIFFIN KUBIK STEPHENS & THOMPSON IN CHICAGO WHAT IS ESPECIALLY WORRISOME TO TRADERS AND INVESTORS THE DATA ALSO RAISE DOUBTS THAT ACTIVITY WILL SLOW MUCH IN THE FIRST QUARTER OF 1994 WHEN YOU LOOK AT DURABLE GOODS NEW ORDERS AUTOS AND HOUSING YOU'VE GOT TO THINK WE ARE GOING TO CONTINUE TO GROW INTO NEXT YEAR SAID MR WESBURY DESPITE YESTERDAY'S SELLOFF MANY BOND MARKET PLAYERS WHO HAVE BEEN RIDING BOND YIELDS TO THEIR LOWEST LEVELS IN YEARS ARE NOT READY TO HANG UP THEIR SPURS QUITE YET INVESTORS ARE LIKELY TO WAIT UNTIL THEY SEE THE STATE OF THE ECONOMY IN THE FIRST QUARTER OF NEXT YEAR BEFORE THEY START PUSHING YIELDS UP MUCH HIGHER SAID MR COSTAS OF CS FIRST BOSTON THE ECONOMY CERTAINLY APPEARS STRONGER THIS QUARTER HE SAYS BUT A CONSENSUS ON THE FIRST QUARTER WON'T HAPPEN YET THE MARKET IS LOOKING FOR A TRADING RANGE HE SAYS AND IT IS VULNERABLE TO ANY PIECE OF NEWS FOR HIS PART MR COSTAS DOESN'T SEE 30YEAR BOND YIELDS RISING MUCH ABOVE 640 BEFORE YEAR END YESTERDAY REPORTS FROM THE CHICAGO PURCHASING MANAGEMENT ASSOCIATION AND THE CONFERENCE BOARD SPARKED THE HEAVY SELLOFF THE PURCHASING MANAGERS' GROUP REPORTED THAT ITS NOVEMBER INDEX OF AREA BUSINESS ACTIVITY JUMPED TO 653 FROM 57 IN OCTOBER AN INDEX READING ABOVE 50 REFLECTS MANUFACTURING EXPANSION TO MAKE MATTERS WORSE FOR THE BOND MARKET JUST AS THE CHICAGO REPORT WAS BEING RELEASED THE CONFERENCE BOARD SAID ITS CONSUMER CONFIDENCE INDEX SURGED TO 712 IN NOVEMBER FROM 605 IN OCTOBER BOTH NUMBERS WERE STRONGER THAN ANTICIPATED SAID MR FINE BUT HE WARNED AGAINST READING TOO MUCH INTO THEM THE CHICAGO REPORT FOR EXAMPLE MAY REFLECT GROWING STRENGTH IN THE AUTO INDUSTRY THAT WON'T AFFECT OTHER PARTS OF THE NATION NEARLY AS MUCH HE SAID THE AUTO SECTOR IS DRIVING THE ECONOMY RIGHT NOW HE SAID THE GAIN IN BUSINESS ACTIVITY IN THE CHICAGO AREA MAY NOT TRANSLATE INTO A NATIONAL GAIN BECAUSE AUTO PRODUCTION IS SO CONCENTRATED IN THE CHICAGO REGION HE SAID TODAY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT IS SLATED TO RELEASE A REPORT ON THE NATION'S BUSINESS ACTIVITY MR FINE DOESN'T EXPECT THAT REPORT TO SHOW AS LARGE A GAIN AS THE CHICAGO REPORT AN ARTICLE IN YESTERDAY'S WASHINGTON POST WAS ANOTHER CATALYST FOR FEARS AMONG INVESTORS ABOUT THE STRENGTH OF THE ECONOMY THE STORY QUOTED AN UNNAMED TOP CLINTON ADMINISTRATION OFFICIAL AS SAYING THE UNEMPLOYMENT RATE COULD FALL BELOW 6 NEXT YEAR THREATENING A RISE IN INFLATIONARY PRESSURES AND A TIGHTENING OF MONETARY POLICY ALTHOUGH THE PREDICTIONS SET A NEGATIVE TONE FOR THE TRADING SESSION THEY DREW SKEPTICISM FROM SOME IN THE BOND MARKET WHO BELIEVE THE ECONOMY ISN'T ROBUST ENOUGH TO GENERATE SUBSTANTIAL INFLATION PRESSURES WE'VE STILL GOT A LOT OF ECONOMIC WEAKNESS AROUND THE WORLD AND NO SIGN OF PRICE PRESSURES HERE SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO NO ONE IS PUSHING THE PANIC BUTTON BECAUSE WE'VE SEEN SOME OF THESE VIOLENT SWINGS BEFORE WHERE THE MARKET GETS OVERSOLD AND THEN COMES BACK PRICES DID MANAGE TO CREEP UP FROM THEIR WORST LEVELS WHEN THE FEDERAL RESERVE CONDUCTED AN OUTRIGHT PURCHASE OF NOTES AND BONDS IN THE AFTERNOON ECONOMISTS HAD PREDICTED THAT THE FED NEEDED TO DO THE PURCHASE KNOWN AS A COUPON PASS IN ORDER TO COUNTER A SEASONAL SHORTAGE OF RESERVES IN THE BANKING SYSTEM ON FRIDAY THE BOND MARKET WILL HAVE TO DEAL WITH THE GOVERNMENT'S NOVEMBER EMPLOYMENT REPORT THE FIRST OFFICIAL LOOK THE STATE OF THE ECONOMY DURING THAT MONTH A LARGERTHANEXPECTED NUMBER FOR GAINS IN NONFARM PAYROLLS COULD SEND BOND PRICES EVEN LOWER MR FINE FOR HIS PART IS PREDICTING A GAIN OF 200000 IN NONFARM PAYROLLS IN NOVEMBER MORE THAN 22 BILLION OF DEBT HIT THE CORPORATE BOND MARKET YESTERDAY EVEN AS BOND YIELDS RESUMED THEIR RISE BUT INVESTORS SEEMED READY TO SCOOP UP THE NEW SECURITIES BECAUSE OF THEIR RISING YIELDS RELATIVE TO TREASURY SECURITIES KOREA DEVELOPMENT BANK SOLD 400 MILLION OF SECURITIES IN A TWOPART OFFERING OF NONCALLABLE FIVEYEAR AND 12YEAR NOTES FORD MOTOR CREDIT CO A UNIT OF FORD MOTOR CO SOLD 500 MILLION OF FIVEYEAR NOTES DESPITE TENSIONS BETWEEN VARIOUS INVESTORS ON ITS BOARD OF DIRECTORS VALLEY FASHIONS CORP FOUND INVESTORS SO EAGER FOR ITS JUNK BONDS WHICH WERE SLATED TO BE PRICED EITHER LATE YESTERDAY OR EARLY TODAY THAT IT HAS INCREASED THE SIZE OF ITS OFFERING TO 950 MILLION FROM 600 MILLION THE TEXTILE HOLDING COMPANY INTENDS TO USE THE PROCEEDS TO RETIRE BANK DEBT THE COMPANY EMERGED FROM BANKRUPTCY PROTECTION IN SEPTEMBER 1992 AFTER THE DEAL THE COMPANY WILL BE RENAMED WESTPOINT STEVENS INC HOSTILITIES AMONG THE INVESTORS WHO CONTROL THE COMPANY HAVE OPENED A RIFT IN THE TEXTILE COMPANY'S BOARD IN ONE CORNER GEORGE MCFADDEN AND TALTON EMBRY WITH A COMBINED STAKE OF 222 HAVE THREATENED TO LAUNCH A PROXY FIGHT AGAINST HOLCOMBE GREEN THE CHAIRMAN OF THE COMPANY FOR HIS PART MR GREEN NEARLY TRIPLED HIS STAKE TO 118 BY BUYING OUT ANOTHER INVESTOR APOLLO ADVISORS LP ON NOVEMBER 4 BUT MR GREEN'S ALLY NEW STREET CAPITAL CORP FORMERLY DREXEL BURNHAM LAMBERT IS FOR SALE WHICH MEANS THE 225 STAKE IT HOLDS IN THE TEXTILE COMPANY MAY BE UP FOR GRABS BUT INVESTORS DON'T SEEM FAZED THERE'S A LOT OF NAME RECOGNITION FOR THIS COMPANY SAYS KEVIN MATHEWS PORTFOLIO MANAGER OF THE 270 MILLION VAN KAMPEN MERRITT HIGH YIELD FUND LIKE OTHER BUYERS HE'S ATTRACTED TO THE COMPANY'S DOMINANT MARKET SHARE IN SHEETS TOWELS AND OTHER BED AND BATH TEXTILES INVESTOR DEMAND FOR THE BOND IS SO STRONG THAT THE COMPANY IS EXPECTED TO GARNER THE KIND OF INTEREST RATES THAT HIGHERRATED COMPANIES ENJOY THE COUPON ON 400 MILLION OF EIGHTYEAR SENIOR NOTES IS EXPECTED TO BE ABOUT 875 AND THE COUPON ON 550 MILLION OF SENIOR SUBORDINATED 12YEAR NOTES IS EXPECTED TO BE 9375 BOTH PARTS ARE NONCALLABLE FOR FIVE YEARS THE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORP TWO MAJOR RATING AGENCIES HAVE GIVEN THE COMPANY RATINGS ON THE LOW END OF THE JUNKBOND RATING SCALE STANDARD & POOR'S CORP HAS RATED THE COMPANY'S SENIOR DEBT DOUBLEBMINUS AND ITS SUBORDINATED DEBT SINGLEBPLUS MOODY'S INVESTORS SERVICE INC HAS RATED THE SENIOR DEBT SINGLEB1 AND THE SUBORDINATED DEBT SINGLEB3 MORE THAN 800 MILLION OF MUNICIPAL BONDS WERE PRICED YESTERDAY AND THERE SEEMED TO BE A MIXED RECEPTION FOR THE NEW SUPPLY AMONG THE UNDERWRITING GROUPS THAT WERE ABLE TO REPRICE THEIR OFFERINGS TO RAISE PRICES AND LOWER YIELDS WAS A MERRILL LYNCH & CO SYNDICATE THAT SOLD THE DAY'S LARGEST ISSUE A CALIFORNIA HOUSING FINANCE AGENCY ISSUE OF 1759 MILLION OF HOMEMORTGAGE REVENUE BONDS FOLLOWING THE REPRICING OVERALL YIELDS FOR THE ISSUE RANGE FROM 285 IN 1994 TO 585 IN 2023 THE SCENARIO WAS DIFFERENT FOR TEXAS' BRAZOS RIVER AUTHORITY WHICH OFFERED 836 MILLION OF COLLATERALIZED REVENUE REFUNDING BONDS THE CS FIRST BOSTON INC GROUP THAT PRICED THOSE BONDS RAISED THE YIELD 002 PERCENTAGE POINT TO FIRE UP DEMAND AND THE BONDS ARE NOW 560 SECURITIES PRICED TO YIELD 570 ON DEC 1 2017 ALTHOUGH DEMAND IN THE PRIMARY MARKET HAS GENERALLY BEEN PRETTY STRONG RECENTLY BUYING IS BEING DONE SELECTIVELY MUNI SPECIALISTS SAY MUNI PRICES ENDED GENERALLY UNCHANGED TO 5/8 POINT LOWER AMONG SECONDARY ISSUES THE NEW YORK STATE POWER AUTHORITY'S 525 BONDS OF 2018 CLOSED 1/4 LOWER AT 96 1/2 TO YIELD 550 A 1 BILLION MBNA AMERICA BANK CREDITCARDBACKED OFFERING REPORTEDLY SOLD OUT QUICKLY DESPITE EXPECTATIONS OF HEAVY ADDITIONAL SUPPLY IN COMING DAYS MORTGAGESECURITIES PRICES MEANWHILE ENDED MODERATELY LOWER BUT ABOVE SESSION LOWS REACHED ON THE STRING OF SURPRISINGLY STRONG ECONOMIC INDICATORS MAXIMUM PRICE LOSSES WERE ABOUT 3/8 POINT COMPARED WITH MORE THAN 5/8 POINT YESTERDAY MORNING UNDERWRITERS LED BY LEHMAN BROTHERS INC PRICED THE MBNA CERTIFICATES SOLD THROUGH A SPECIALPURPOSE VEHICLE CALLED MBNA MASTER CREDIT CARD TRUST 19934 TO YIELD 026 PERCENTAGE POINT ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE ISSUER IS A UNIT OF MBNA CORP THE FLOATINGRATE ISSUE HAS A 12 YIELD CAP AND AN EXPECTED FINAL MATURITY OF JUNE 1999 AND A LEGAL FINAL MATURITY OF DECEMBER 2000 THE BANK BASED IN NEWARK DEL IS KNOWN FOR ITS HIGHQUALITY CREDITCARD PORTFOLIO DATA ON PREPAYMENTS OF FEDERAL HOME LOAN MORTGAGE CORP MORTGAGE SECURITIES FROM MIDOCTOBER TO MIDNOVEMBER WILL BE AVAILABLE TODAY NEXT WEEK FEDERAL NATIONAL MORTGAGE ASSOCIATION AND GOVERNMENT NATIONAL MORTGAGE ASSOCIATION PREPAYMENTS FOR THE FULL MONTH OF NOVEMBER WILL BE REPORTED IN SECONDARY DEALINGS OF 65 MORTGAGE SECURITIES FOR DECEMBER DELIVERY GINNIE MAE ISSUES CLOSED 13/32 LOWER AT 98 17/32 FREDDIE MAC GOLD ISSUES FINISHED 10/32 LOWER AT 98 26/32 AND FANNIE MAE ISSUES ENDED 10/32 LOWER AT 98 19/32 NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS WERE ANNOUNCED THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9312010115 931201 WHO'S NEWS AT&T CAPITAL CORP AT&T CAPITAL CORP MORRISTOWN NJ RICHARD W MILLER 52 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF AMERICAN TELEPHONE & TELEGRAPH CO WAS ELECTED A DIRECTOR OF THIS LEASING AND FINANCING CONCERN WHICH IS 80OWNED BY AT&T MR MILLER'S ELECTION INCREASES THE BOARD'S SIZE TO 12 MEMBERS 9312010113 931201 NFL EXPANSION FRANCHISE GOES TO JACKSONVILLE FLA ROSEMONT ILL JACKSONVILLE FLA CAPPING A 14YEAR DRIVE WAS AWARDED A NATIONAL FOOTBALL LEAGUE FRANCHISE THE JACKSONVILLE JAGUARS THE LEAGUE'S 30TH TEAM WILL BEGIN PLAY IN 1995 JACKSONVILLE IS THE SECOND AND FINAL EXPANSION CITY SELECTED FROM FIVE FINALISTS BY NFL OWNERS MEETING HERE IN OCTOBER OWNERS PICKED CHARLOTTE NC AS AN EXPANSION SITE BUT WERE UNABLE TO CHOOSE A SECOND CITY FROM AMONG JACKSONVILLE BALTIMORE MEMPHIS TENN AND ST LOUIS JACKSONVILLE LONG WAS CONSIDERED AN ALSORAN IN THE RACE LARGELY BECAUSE IT HAS THE SMALLEST TELEVISION MARKET OF THE CONTENDERS BUT CITY OFFICIALS AGREED TO SPEND 121 MILLION TO RENOVATE THE CITYOWNED GATOR BOWL CITIZENS SHOWED THEIR SUPPORT IN LATE AUGUST WHEN THEY BOUGHT MORE THAN 10000 SPECIALSEASON TICKETS IN JUST 10 DAYS AND AFTER THE OCTOBER MEETING SHOE MAGNATE J WAYNE WEAVER WHO HEADS THE CITY'S OWNERSHIP GROUP CONTINUED TO LOBBY NFL OFFICIALS THE FRANCHISE WILL COST 140 MILLION WITH STARTUP COSTS EXPECTED TO RUN AS MUCH AS 75 MILLION 9312010111 931201 TECHNOLOGY EPA TO END PRODUCTION IMPORTS OF METHYL BROMIDE WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY SAID IT WILL PHASE OUT ALL DOMESTIC PRODUCTION AND IMPORTS OF METHYL BROMIDE A WIDELY USED PESTICIDE BY THE YEAR 2001 THE ACTION WHICH IS INCLUDED IN A FINAL RULE ON PHASING OUT OZONEDEPLETING SUBSTANCES AS REQUIRED BY THE 1990 CLEAN AIR ACT DELAYS BY ONE YEAR A BAN PROPOSED IN THE FINAL HOURS OF THE BUSH ADMINISTRATION BY THENEPA ADMINISTRATOR WILLIAM REILLY THE DELAY IS A SOURCE OF SOME EMBARRASSMENT TO THE EPA BECAUSE OF REPORTS LAST MONTH THAT THE CLINTON ADMINISTRATION WAS NEGOTIATING WITH MEMBERS OF CONGRESS OVER THE METHYL BROMIDE BAN TO SHORE UP SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT AN EPA OFFICIAL SAID YESTERDAY THAT THE AGENCY DECIDED IN AUGUST TO DELAY THE METHYL BROMIDE BAN AND IT HAS NOTHING TO DO WITH NAFTA HE SAID THE EPA HAD PUSHED BACK THE PHASEOUT DEADLINE BECAUSE OF INTERNAL EPA DELAYS IN COMPLETING THE FINAL RULE EVEN WITH THE DELAY THE US ACTION OUTSTRIPS THAT OF OTHER NATIONS THE MONTREAL PROTOCOL AN INTERNATIONAL TREATY TO PROTECT THE OZONE LAYER LAST YEAR WAS AMENDED TO FREEZE BUT NOT BAN PRODUCTION OF METHYL BROMIDE LIZ COOK OZONECAMPAIGN DIRECTOR FOR FRIENDS OF THE EARTH PRAISED THE BAN ON METHYL BROMIDE BUT SAID IT'S UNFORTUNATE THAT AN EXTRA YEAR'S WORTH OF PRODUCTION WILL ENTER INTO THE ATMOSPHERE 9312010110 931201 TECHNOLOGY CHIP PLANT BACK ON LINE AVERTING FEARED SHORTAGE SAN JOSE CALIF A FEARED CHIP SHORTAGE HAS BEEN AVERTED AND A DAMAGED PLANT IS BACK ON LINE ACCORDING TO A SEMICONDUCTOR TRADE GROUP A FIVEMONTH PANIC SPURRED BY THE CLOSING HAD TRIGGERED PRICE INCREASES OF 50 ON SUMMER'S SPOT MARKET FOR CERTAIN KEY CHIPS SUCH AS DYNAMIC RANDOM ACCESS MEMORIES OR DRAMS THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID SUMITOMO CHEMICAL CORP IN NOVEMBER RESUMED MAKING EPOXY RESINS USED TO ENCASE CHIPS FOLLOWING THE JULY 4 ACCIDENT THAT KILLED ONE PERSON AND IDLED ITS HUGE NIIHAMA JAPAN PLANT THE PLANT MADE 50 OF THE RESINS USED AS PACKAGING MATERIALS TO ENCASE SEMICONDUCTOR CHIP SHIPMENTS WORLDWIDE THE SIA SAID THE NIIHAMA PLANT IS SAMPLING PRODUCT IN THE HOPE OF LAUNCHING VOLUME SHIPMENTS BY NEXT WEEK THE GROUP SAID A SEMICONDUCTORCHIP SHORTAGE NEVER MATERIALIZED PRICE BOOSTS WERE BASED ON SPECULATION AND NOT ON REAL SHORTAGES A SPOKESMAN SAID 9312010108 931201 INTERNATIONAL VENEZUELANS WILL DETERMINE THE FATE OF REFORMS AS THEY VOTE FOR PRESIDENT BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL CARACAS VENEZUELA PRESIDENTIAL ELECTIONS SUNDAY WILL DETERMINE THE FATE OF A FLEDGLING FREEMARKET REFORM PROGRAM IN ONE OF LATIN AMERICA'S OLDEST BUT MOST DEEPLY TROUBLED DEMOCRACIES THE VENEZUELAN ELECTION HAS TURNED INTO A TIGHT RACE BETWEEN REFORMMINDED OSWALDO ALVAREZ PAZ WHOSE SLOGAN IS GOD AND THE MARKET AND EXPRESIDENT RAFAEL CALDERA AN OLDSTYLE POPULIST WHO MIGHT RETURN VENEZUELA TO A MORE STATIST PATH A THIRD CANDIDATE ANDRES VELASQUEZ IS ALSO DRAWING SUBSTANTIAL SUPPORT ESPECIALLY FROM THE POOR MR CALDERA LEADS MOST POLLS BY A FEW POINTS BUT HIS LEAD HAS DIMINISHED IN RECENT WEEKS AND ANALYSTS CONSIDER THE RACE TOO CLOSE TO CALL THE ELECTION IS BEING WATCHED CLOSELY AS A SIGN OF WHETHER THE MARKETORIENTED ECONOMIC CHANGES THAT HAVE BEEN RIPPLING THROUGH LATIN AMERICA CAN BE SUSTAINED OVER TIME A CALDERA VICTORY COULD MAKE VENEZUELA THE FIRST LATIN AMERICAN COUNTRY TO EXPERIENCE A REVERSAL OF REFORM SAYS M DELAL BAER AN ANALYST AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON THE CAMPAIGN HAS BEEN MARRED BY ACTS OF TERRORISM SHIFTING POLITICAL ALLIANCES AND ACCUSATIONS OF ELECTORAL FRAUD IT IS POSSIBLE THAT THE AFTERMATH OF THE VOTING ALSO WILL BE TUMULTUOUS A PRESIDENTELECT EMERGING FROM DISPUTED BALLOTING WITH A NARROW MARGIN OF VICTORY COULD ENCOUNTER DIFFICULTY CONTROLLING RESTIVE ELEMENTS WITHIN VENEZUELA'S MILITARY WHOEVER WINS THE ELECTION WILL CONFRONT A RAFT OF ECONOMIC AND SOCIAL PROBLEMS ANEMIC ECONOMIC GROWTH OF AROUND 1 INFLATION WELL ABOVE 30 AND WIDESPREAD DISILLUSIONMENT WITH GOVERNMENT AND MOST OTHER INSTITUTIONS A COUNTRY WITH A 35YEAR HISTORY OF DEMOCRACY AND LIVING STANDARDS THAT WERE ONCE THE ENVY OF THE REGION VENEZUELA HAS STUMBLED LATELY BECAUSE OF BOTH POLITICAL AND ECONOMIC FACTORS PERVASIVE CORRUPTION HAS PROVOKED A LOSS OF CONFIDENCE IN THE TWO PARTIES THAT FOR DECADES DOMINATED THE COUNTRY'S POLITICAL LIFE MEANWHILE VENEZUELA'S VAST OIL RESERVES FOSTERED A FALSE SENSE THAT THERE WAS NO NEED FOR THE GOVERNMENT TO TAKE TOUGH ACTIONS TO CUT A BLOATED PUBLIC SECTOR ACCEPTING THE FACT THAT VENEZUELA IS NO LONGER A RICH COUNTRY CARLOS ANDRES PEREZ EMERGED AS THE UNLIKELY APOSTLE OF REFORM WHEN THE FORMER POPULIST BECAME PRESIDENT IN 1989 JUST TWO WEEKS AFTER HIS ELECTION HE INTRODUCED AUSTERITY MEASURES SO SEVERE AND UNEXPECTED THAT THEY PROVOKED DAYS OF BLOODY RIOTING THOUGH MR PEREZ PERSEVERED HE SOON ENCOUNTERED OTHER CHALLENGES RUTH DE KRIVOY PRESIDENT OF THE VENEZUELAN CENTRAL BANK SAYS VENEZUELA'S WINDFALL FROM THE OIL PRICE RUNUP DURING THE 1990 GULF WAR ALLOWED THE GOVERNMENT TO POSTPONE TACKLING A RUNAWAY DEFICIT THAT HAS HOVERED AROUND 6 OF GROSS DOMESTIC PRODUCT BIG SPENDERS GOT ANOTHER REPRIEVE IN 1991 WHEN THE GOVERNMENT EARNED 2 BILLION FROM PRIVATIZATIONS SHE SAYS BY 1992 THERE WERE NO LONGER ANY EXCUSES FOR DELAYING AUSTERITY BUT BY THEN MR PEREZ WAS BEING SUCKED INTO THE WHIRL OF A MAJOR CORRUPTION SCANDAL HE WAS FORCED TO LEAVE OFFICE LAST MAY STILL THE VENEZUELAN CONGRESS RECENTLY APPROVED A VALUEADDED TAX WHICH SHOULD HELP REDUCE THE DEFICIT LEGISLATORS ALSO PASSED A MEASURE ALLOWING THE STATEOWNED OIL COMPANY TO ENTER INTO JOINT VENTURES WITH FOREIGN COMPANIES AN EARLIER LEGISLATIVE MEASURE WHICH GRANTED INDEPENDENCE TO THE CENTRAL BANK WILL GIVE THE REFORMIST DR DE KRIVOY A FAVORITE OF THE BUSINESS COMMUNITY A REAL VOICE IN ECONOMIC POLICY REGARDLESS OF WHO BECOMES PRESIDENT BUT WHILE OTHER LATIN AMERICAN NATIONS ARE MOVING AGGRESSIVELY TO BECOME MAJOR PLAYERS IN THE WORLD ECONOMY VENEZUELA OFTEN SEEMS IMMOBILIZED BY INTERNAL PROBLEMS ON NOV 17 WHEN MOST OF LATIN AMERICA WAS CHEERING THE US CONGRESSIONAL APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT VENEZUELANS WERE RIVETED BY SCENES OF POLICE RAIDING EXPRESIDENT PEREZ'S OFFICE AND SEIZING DOCUMENTS AS EVIDENCE FOR HIS CORRUPTION TRIAL THE CANDIDATE MOST LIKELY TO PICK UP MR PEREZ'S MANTLE OF FREEMARKET REFORM IS MR ALVAREZ PAZ OF THE SOCIAL CHRISTIAN PARTY HIS CAMPAIGN HAS EMPHASIZED THE NEED TO FIGHT INFLATION AND CUT THE DEFICIT WHILE TRYING TO REASSURE THE INVESTMENT COMMUNITY THAT HE TOO IS COMMITTED TO THE MARKET THE 77YEAROLD MR CALDERA HAS PREACHED AN UNABASHEDLY POPULIST MESSAGE ON THE CAMPAIGN TRAIL HE HAS ADVOCATED A TOUGHER STANCE IN NEGOTIATING VENEZUELA'S FOREIGN DEBT AND EXPRESSED MISGIVINGS ABOUT SOME PRIVATIZATIONS SOME SAY THAT WHAT MR CALDERA SAYS AS CANDIDATE AND DOES AS PRESIDENT COULD BE TWO DIFFERENT THINGS IN THE SAME WAY THAT ARGENTINE PRESIDENT CARLOS MENEM TURNED OUT TO BE MUCH MORE OF A REFORMER THAN ANYONE THOUGHT A CALDERA PRESIDENCY COULD SURPRISE US SAYS FRANCISCO ALZURU AN ASSOCIATE AT VESTCORPARTNERS GROUP A MAJOR BROKERAGE FIRM VENEZUELANS' CONFIDENCE IN PUBLIC INSTITUTIONS IS ALREADY AT AN EBB IT'S HARD TO SAY WHO HAS A WORSE IMAGE THESE DAYS POLITICIANS BUSINESSMEN OR MILITARY OFFICERS SAYS RUTH CAPRILES MENDEZ WHO EDITED A MASSIVE THREEVOLUME DICTIONARY OF CORRUPTION IN VENEZUELA THAT HAS BECOME A BESTSELLER TAKE YOUR PICK 9312010107 931201 BIG THREE GET CONTRACTS FOR FEDERAL FLEET VEHICLES WASHINGTON THE GENERAL SERVICES ADMINISTRATION ANNOUNCED THAT THE BIG THREE AUTO MAKERS HAVE WON AN ESTIMATED 60 MILLION OF CONTRACTS FOR SOME 5500 ALTERNATIVEFUEL VEHICLES FOR THE FEDERAL FLEET THE GSA A GOVERNMENT HOUSEKEEPING AGENCY SAID CHRYSLER CORP RECEIVED A CONTRACT FOR AN ESTIMATED 35 MILLION GENERAL MOTORS CORP WON A CONTRACT WITH AN ESTIMATED VALUE OF 24 MILLION AND FORD MOTOR CO GOT A CONTRACT ESTIMATED AT 687000 ROGER JOHNSON GSA ADMINISTRATOR SAID THE AWARDS ARE PART OF A JOINT AGREEMENT BETWEEN THE GSA AND THE ENERGY DEPARTMENT TO ACQUIRE ALTERNATIVEFUEL VEHICLES UNDER THE ALTERNATIVE MOTOR FUELS ACT OF 1988 AND THE ENERGY POLICY ACT OF 1992 THE FEDERAL GOVERNMENT'S FLEET OF AUTOMOBILES CURRENTLY HAS 6500 OF SUCH VEHICLES 9312010106 931201 AT&T ENTERS VENTURE IN INFORMATION SERVICES WITH CHINESE CONCERN NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO HAS PUT TOGETHER AN INFORMATIONSERVICES JOINT VENTURE IN CHINA THAT WILL MARKET A MASSIVE DATABASE ON MORE THAN 400000 CHINESE COMPANIES THE VENTURE WHICH PEOPLE CLOSE TO AT&T SAID IS TO BE ANNOUNCED TODAY IN NEW YORK HAS BEEN FORMED WITH A CHINESE INFORMATION COMPANY WITH CLOSE TIES TO THE CHINA'S STATE STATISTICAL BUREAU AN AT&T SPOKESMAN WOULD SAY ONLY THAT AT&T PLANS TO MAKE AN ANNOUNCEMENT ON ITS CHINA BUSINESS ONE AT&T INSIDER SAID COMPANY EXECUTIVES CAME ACROSS THE CHINESE COMPANY DURING A RECENT VISIT AND DISCOVERED IT HAD DETAILED FINANCIAL INFORMATION IN CHINESE ON JUST ABOUT EVERY COMPANY IN CHINA AN AGREEMENT LATER WAS REACHED TO TRANSLATE AND MARKET THE INFORMATION EXCLUSIVELY WORLDWIDE UNDER A NEW JOINT VENTURE CALLED EAST GATE SERVICES THE INFORMATION MIGHT ALLOW AT&T AND ITS PARTNER TO SET UP A DUN & BRADSTREETLIKE DATABASE INFORMATION SERVICE THAT COULD BE MARKETED TO COMPANIES LOOKING TO DO BUSINESS IN CHINA WHICH AT&T REGARDS AS ITS KEY MARKET FOR PENETRATION OUTSIDE THE US GIVEN THE SIZE OF THE CHINESE TELECOMMUNICATIONS MARKET MORE THAN ONE BILLION PEOPLE LESS THAN 2 OF WHOM HAVE PHONES AT&T'S CHINA UNIT COULD DWARF AT&T'S US EQUIPMENT BUSINESS AFTER THE TURN OF THE CENTURY 9312010105 931201 PARAMOUNT'S APPEAL STATES IT ISN'T OBLIGED TO SELL HIGH WILMINGTON DEL PARAMOUNT COMMUNICATIONS INC APPEALING A DELAWARE COURT DECISION BLOCKING ITS PROPOSED 95 BILLION ACQUISITION BY VIACOM INC SAID IT ISN'T OBLIGATED TO SELL THE MEDIA COMPANY TO THE HIGHEST BIDDER PARAMOUNT CALLED QVC NETWORK INC WHICH HAS MADE A 104 BILLION BID FOR PARAMOUNT AN 800' NUMBER ELECTRONIC RETAILER' THAT DEPENDS IN THE VIEW OF SEVERAL INDEPENDENT DIRECTORS TOO MUCH ON QVC CHAIRMAN BARRY DILLER'S TALENTS THE LOWERCOURT DECISION IMPROPERLY USURPED THE DIRECTORS' JUDGMENT ABOUT STRATEGY VALUE AND TIME FRAME PARAMOUNT SAID CONTRADICTING A CONCLUSION BY JUDGE JACK JACOBS THAT THE DIRECTORS HADN'T SOUGHT ENOUGH INFORMATION ABOUT THE QVC BID IN ITS OWN APPEAL VIACOM ATTACKED JUDGE JACOBS'S INVALIDATION OF A LOCKUP AGREEMENT ALLOWING VIACOM TO BUY AND RESELL PARAMOUNT SHARES AT A PROFIT OF MORE THAN 400 MILLION IF QVC ACQUIRES THE COMPANY ORAL ARGUMENTS ARE DUE TO BE HEARD DEC 9 WITH A DECISION EXPECTED A FEW DAYS AFTER THAT 9312010104 931201 VALLEY FASHIONS GAINS IN FIGHT TO TAKE OVER WEST POINTPEPPERELL WEST POINT GA VALLEY FASHIONS CORP APPEARS THE WINNER IN A TWOYEAR LEGAL BATTLE STEMMING FROM CHICAGO FINANCIER WILLIAM FARLEY'S ATTEMPT TO TAKE OVER WEST POINTPEPPERELL INC IN 1989 MR FARLEY ACQUIRED 95 OF THE TEXTILE COMPANY THROUGH A 58ASHARE TENDER OFFER BUT RAN INTO FINANCIAL PROBLEMS BEFORE HE COULD BUY THE REMAINING 5 VALLEY FASHIONS SUCCESSOR TO THE COMPANY FORMED BY MR FARLEY TO ACQUIRE WEST POINT NOW HOLDS THE 95 STAKE THREE HOLDERS OF THE 5 INCLUDING INVESTMENT FIRM KIDDER PEABODY & CO A GENERAL ELECTRIC CO UNIT SUED VALLEY FASHIONS AND OTHERS SEEKING MORE THAN THE 46 A SHARE THEY WERE OFFERED FOR THEIR HOLDINGS BUT YESTERDAY VALLEY FASHIONS SAID A JUDGE IN GEORGIA SUPERIOR COURT IN TROUP COUNTY GRANTED SUMMARY JUDGMENT IN FAVOR OF THE DEFENDANTS WILLIAM G LEONARD AN ATLANTA ATTORNEY REPRESENTING KIDDER PEABODY SAID IT WAS PREMATURE TO SAY THE CASE HAD ENDED BECAUSE THE JUDGE HASN'T ISSUED FINAL ORDERS HE ADDED THAT THE PLAINTIFFS WERE CONSIDERING AN APPEAL AND THAT THE SIDES ARE IN SETTLEMENT TALKS BOB THORNTON AN ATLANTA ATTORNEY REPRESENTING ANOTHER PLAINTIFF FORMER WESTPOINT EXECUTIVE JOSEPH L LANIER JR SAID HE PLANNED AN APPEAL KEITH B STEIN SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF VALLEY FASHIONS SAID A NOMINAL SETTLEMENT IS BEING CONSIDERED IN ORDER TO ENSURE THEIR VOTE IN FAVOR OF A MERGER OF WEST POINT AND VALLEY FASHIONS THE VOTE IS SCHEDULED FOR A DEC 10 SHAREHOLDERS' MEETING 9312010103 931201 FINANCING BUSINESS ROCHESTER TELEPHONE CORP ROCHESTER TELEPHONE CORP ROCHESTER NY SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL UP TO 100 MILLION IN DEBT SECURITIES PART OF THE PROCEEDS WILL BE USED TO REFINANCE THE TELECOMMUNICATIONS CONCERN'S CURRENT REDEMPTION OF 755 MILLION OF HIGHCOST FIRST MORTGAGE BONDS PROCEEDS WILL ALSO BE USED FOR GENERAL CORPORATE PURPOSES OVER THE NEXT TWO YEARS WHICH MAY INCLUDE REFINANCING OTHER LONGTERM DEBT PAYING DOWN SHORTTERM DEBT AND FINANCING POSSIBLE ACQUISITIONS THE NEW YORK STATE PUBLIC SERVICE COMMISSION HAS ALREADY APPROVED THE ISSUANCE OF UP TO 72 MILLION OF NEW DEBT SALOMON BROTHERS INC AND GOLDMAN SACHS & CO WILL BE THE SELLING AGENTS FOR THE NEW SECURITIES 9312010101 931201 SMALL STOCK FOCUS ISSUES INCREASE MODERATELY BUT WORRIES ABOUT RATES KEEP PRICES FAR FROM HIGHS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BUYERS JUMPED ON BOARD LATE IN THE SESSION PROVIDING SMALLCAP STOCKS WITH A MODERATE LIFT BUT INTEREST RATERELATED CAUTION KEPT PRICES FAR FROM THEIR HIGHS BONDS PRICES SANK ON SEVERAL ROUNDS OF UPLIFTING ECONOMIC NEWS SUCH AS IMPROVED NOVEMBER CONSUMER CONFIDENCE AND A RISE IN THE CHICAGO PURCHASING MANAGERS' INDEX THE 30YEAR TREASURY BOND DROPPED MORE THAN 7/8 POINT PUSHING ITS YIELD UP TO 630 THERE'S STILL A GREAT DEAL OF PROFITTAKING BECAUSE OF A REALIZATION THAT THERE'S VALUES AT THESE LEVELS SAID JIM BELLINI DIRECTOR OF EQUITY TRADING AT DAIN BOSWORTH INC THE RUSSELL 2000 INDEX HAD STAYED MARGINALLY LOWER UNTIL THE CLOSE WHEN IT POPPED UP 027 POINT TO 25041 FAR BELOW ITS RECORD OF 26017 SET NOV 2 THE BAROMETER MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES ON NASDAQ THE COMPOSITE INDEX FINISHED 285 POINTS HIGHER AT 75439 AFTER SCALING THE FENCE SEPARATING POSITIVE AND NEGATIVE TERRITORY SEVERAL TIMES ADVANCING NASDAQ ISSUES OVERTOOK DECLINERS NEAR THE CLOSE 1554 TO 1437 ON NASDAQ NATIONAL MARKET VOLUME OF 244661250 SHARES UP FROM 205033800 SHARES MONDAY TOTAL NASDAQ VOLUME ROSE TO 285839000 SHARES FROM 243134000 SHARES MONDAY THERE'S A GREAT DEAL OF CAUTIOUSNESS ON THE PART OF INVESTORS SAID MR BELLINI OF DAIN BOSWORTH INVESTORS ARE CONCERNED OVER WHETHER WE'RE ENTERING A CORRECTIVE PHASE BUT MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER INC SAID SMALLER STOCKS ARE STILL CORRECTING THIS IS DEFINITELY A PERIOD OF WEAKNESS AND THERE'S NO FUNDAMENTAL REASON FOR IT BUT I THINK IT COULD ENDURE FOR A WHILE SHE SAID THE RUSSELL 2000 STILL IS 976 POINTS OR 375 AWAY FROM ITS RECORD THE NASDAQ COMPOSITE INDEX MEANWHILE IS 3303 POINTS OR 419 SHY OF 78742 THE CLOSING RECORD SET ON OCT 15 BUT IN THE NEXT FEW SESSIONS INTEREST RATES WILL CONTINUE TO BE THE DRIVING FORCE BONDS IN TURN WILL LIKELY TAKE THEIR CUE FROM ECONOMIC DATA DUE OUT THIS WEEK TODAY MARKET PLAYERS WILL LOOK FOR THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS INDEX FOR NOVEMBER AND OCTOBER CONSTRUCTION SPENDING FIGURES TOMORROW OCTOBER LEADING INDICATORS NEWHOME SALES AND PERSONAL INCOME DATA ARE DUE FOR RELEASE AND EVERYONE IS WAITING FOR NOVEMBER EMPLOYMENT NUMBERS ON FRIDAY ONE OF THE SESSION'S BIGGEST NASDAQ GAINERS WESTERN PUBLISHING GROUP OF NEW YORK SHOT UP 5 1/2 TO 18 AFTER THE CLOSE MONDAY THE PUBLISHER OF CHILDREN'S BOOKS SAID IT HAS RECENTLY BEEN APPROACHED BY SEVERAL COMPANIES EXPRESSING A DESIRE TO DISCUSS A BUSINESS COMBINATION SOFTWARE PUBLISHING SANTA CLARA CALIF JUMPED 1 3/8 TO 7 3/8 THE COMPANY'S SHARE PRICE MOVED HIGHER FOLLOWING A BUY RECOMMENDATION FROM OLDE DISCOUNT BROKERS MARKET PLAYERS SAID A MERRILL LYNCH & CO UPGRADE TO NEARTERM BUY FROM ABOVE AVERAGE DROVE HEALTH MANAGEMENT SYSTEMS UP 2 1/4 TO 20 3/4 MERRILL ANALYST STEPHEN MCCLELLAN SAID THE STOCK OF THE NEW YORK PROVIDER OF DATAPROCESSING AND COMPUTERSOFTWARE SERVICES TO HOSPITALS AND GOVERNMENT HEALTHCARE AGENCIES WILL BENEFIT FROM THE CLINTON ADMINISTRATION'S HEALTHCARE PROPOSAL BABBAGE'S BASED IN DALLAS SLID 4 1/2 TO 21 3/4 LATE MONDAY THE COMPUTER SOFTWARE RETAILER SAID ITS SALES FOR THE MONTH ENDED SATURDAY INCREASED 5 TO 212 MILLION FROM 201 MILLION A YEAR EARLIER BUT COMPARABLESTORE SALES OR SALES IN STORES OPEN AT LEAST ONE YEAR DECLINED 10 FOR THE MONTH IN SYMPATHY WITH BABBAGE'S OTHER VIDEO GAME SOFTWARE MAKERS AND DISTRIBUTORS ALSO FELL ELECTRONIC ARTS BASED IN SAN MATEO CALIF DROPPED 1 5/8 TO 34 7/8 AND BRODERBUND SOFTWARE BASED IN NOVATO CALIF FELL 2 1/2 TO 50 3/4 A 6 DECLINE IN NOVEMBER SAMESTORE SALES CAUSED SOFTWARE ETC STORES' SHARE PRICE TO SAG 2 1/4 TO 15 THE EDINA MD PERSONALCOMPUTER SOFTWARE RETAILER CITED WEAKERTHANANTICIPATED SALES OF VIDEO GAME SOFTWARE AND SYSTEMS AND A SEASONAL SHIFT FROM NOVEMBER TO DECEMBER DUE TO AN ADDITIONAL FULL SHOPPING DAY BETWEEN THANKSGIVING AND CHRISTMAS ON THE BRIGHT SIDE SOFTWARE ETC SAID ITS TOTAL SALES FOR NOVEMBER ROSE 17 TO 218 MILLION ON THE NEW YORK STOCK EXCHANGE ROHR INC GAINED 1 5/8 TO 9 AFTER THE CLOSE MONDAY THE CHULA VISTA CALIF AEROSPACE PRODUCTS COMPANY SAID FISCAL FIRSTQUARTER EARNINGS WERE 34 CENTS A SHARE UP FROM OPERATING EARNINGS OF 20 CENTS A SHARE A YEAR EARLIER ELCOR DALLAS PLUNGED 4 1/8 TO 18 3/4 ON THE BIG BOARD THE COMPANY SAID SLOW MARKETS IN ITS INDUSTRIAL PRODUCTS SEGMENT AND CHANGING ROOFING MARKET CONDITIONS WILL LIKELY CAUSE ITS FISCAL 1994 EARNINGS TO FALL SHORT OF ANALYSTS' EXPECTATIONS OF 2 TO 210 A SHARE FOR THE FISCAL YEAR ENDED JUNE 30 ELCOR EARNED 192 A SHARE ON FEWER SHARES TECHNOLOGY STOCKS HAD A GOOD DAY BTU INTERNATIONAL INC NORTH BILLERICA MASS GAINED 5/8 TO 2 5/8 BIOLOGIC SYSTEMS CORP BASED IN MUNDELEIN ILL ROSE 1/2 TO 3 1/2 AND TIMBERLINE SOFTWARE CORP BEAVERTON ORE CLIMBED 7/8 TO 7 1/8 NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 62 WHILE 46 ISSUES HIT NEW LOWS 9312010100 931201 COMPUTERS ONCE VERY HOT MAILORDER PCS ARE COOLING OFF BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL THE MAILORDER COMPUTER BUSINESS ONCE THE HOT GROWTH AREA FOR COMPUTING'S UPANDCOMERS IS STARTING TO SLOW DOWN STUNG BY THE SUCCESS OF COMPUTER SUPERSTORES AND A RUSH OF FIRSTTIME BUYERS WHO WANT TO SEE WHAT THEY BUY MAIL ORDER'S SHARE OF THE TOTAL PC MARKET IS EXPECTED TO INCH UP ONLY SLIGHTLY NEXT YEAR SETTING THE STAGE FOR A DECLINE THAT COULD LAST THROUGH THE END OF THE DECADE IT'S VERY CLEAR SAYS COMPUTER RETAIL CONSULTANT ANDY BOSE THAT THE GLORY DAYS OF THE MAILORDER BUSINESS ARE OVER LESS THAN A YEAR AGO THE MAILORDER SALES CHANNEL WAS THE INDUSTRY'S DISTRIBUTION DARLING BY SELLING THROUGH CATALOGS AND TALKING TO CUSTOMERS OVER THE PHONE COMPANIES LIKE DELL COMPUTER CORP AND GATEWAY 2000 INC COULD SELL THEIR WARES CHEAP AND OFFER ONEONONE SERVICE THAT COMPUTER RETAILERS COULDN'T MATCH AS A RESULT MAIL ORDER'S SHARE OF THE CONSUMER COMPUTER MARKET ZOOMED TO 12 THIS YEAR FROM 6 THREE YEARS AGO ACCORDING TO LINK RESOURCES CORP A HIGHTECH CONSULTING FIRM IN NEW YORK THAT SUCCESS CUT DEEPLY INTO THE MARKET SHARE HELD BY THE INDUSTRY'S GIANTS TO WIN BACK CUSTOMERS COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND DIGITAL EQUIPMENT CORP ALL PLUNGED INTO THE MAILORDER BUSINESS NOW WITH THE FIELD GLUTTED NEARLY EVERYONE IS HURTING COMPUTER SHOPPER A PHONEBOOKSIZE TRADE MAGAZINE THAT SERVES AS THE MAILORDER INDUSTRY'S BIBLE EXPECTS TO END THE YEAR WITH 600 FEWER PAGES THAN IN 1992 REPRESENTING A DROP OF ABOUT 6 SAYS AL DIGUIDO THE MAGAZINE'S PUBLISHER SMALL MAILORDER PLAYERS LIKE NORTHGATE COMPUTER SYSTEMS INC AND ZEOS INTERNATIONAL LTD ARE BLEEDING RED INK EVEN AS COMPUADD CORP AN AUSTIN TEXAS MAILORDER VENDOR WORKS TO RIGHT ITSELF AFTER FILING FOR BANKRUPTCY PROTECTION MEANWHILE THE EXECUTIVE WHO RAN COMPAQ'S MAILORDER BUSINESS HAS LEFT THE COMPANY AMID RESULTS THAT ANALYSTS SAY HAVE BEEN DISAPPOINTING A COMPAQ SPOKESWOMAN SAYS THE COMPANY'S MAILORDER OPERATIONS ARE MEETING EXPECTATIONS DESCRIBING THE SALES CHANNEL AS A VIABLE SEGMENT ALBEIT A SMALL ONE EVEN DELL THE WORLD'S MAILORDER PIONEER IS CHANGING ITS STRIPES IN RECENT MONTHS THE COMPANY HAS QUIETLY MOVED TO EXPAND THE NUMBER OF PLACES IT SELLS ITS MACHINES REDUCING ITS DEPENDENCE ON MAIL ORDER WE SCREWED UP SAYS COMPANY FOUNDER MICHAEL DELL WE'VE HAD A PHILOSOPHICAL SHIFT WE WANT OUR PRODUCTS ACCESSIBLE TO CUSTOMERS WHERE THEY WANT TO BUY THEM DELL IS ALREADY SELLING ITS MACHINES THROUGH RETAILERS LIKE WALMART STORES INC AND COMPUSA INC AND IT IS TALKING WITH OTHER CHAINS THE NEGOTIATIONS WON'T BE EASY MR DELL AND MOST OF HIS MANAGEMENT TEAM HAVE SPENT YEARS CRITICIZING COMPUTER RETAILERS AS INEFFICIENT AND PREDICTING THAT THE MAILORDER CHANNEL WILL RULE THE PC WORLD BUT FACING DOWN RETAILERS WILL BE THE EASY PART FOR DELL AND OTHER MAILORDER PLAYERS ADDING NEW RETAIL VENUES MEANS ADDING COST AT A TIME WHEN PROFIT MARGINS IF THEY EXIST ARE DANGEROUSLY THIN INDEED DELL YESTERDAY REPORTED THAT ITS THIRDQUARTER EARNINGS FELL 60 FROM A YEAR EARLIER EVEN WORSE THE MAILORDER COMPANIES ARE BATTLING FOR SHELF SPACE AT THE SAME TIME THAT RETAILERS ARE CULLING THEIR INVENTORY TO MAKE ROOM FOR THE REVIVED BIGNAME BRANDS THE PRICE ADVANTAGE ENJOYED BY MOST MAILORDER VENDORS ENDED LAST JUNE WHEN COMPAQ CUT ITS PRICES AND INTRODUCED A LINE OF LOWEND MACHINES QUICKLY DUBBED CLONE KILLERS BY INDUSTRY PUNDITS WITHIN MONTHS IBM AND DIGITAL EQUIPMENT CORP FOLLOWED SUIT MEANING THAT PEOPLE COULD BUY BRANDNAME MACHINES FOR THE SAME PRICE AS THE ALSORANS AT THE SAME TIME COMPUTERS WERE FINDING THEIR WAY ONTO SHELVES THAT HAD NEVER CARRIED THEM BEFORE INCLUDING THOSE OF WAREHOUSE STORES AND MASSMARKET RETAILERS BY THE END OF LAST YEAR COMPUTER SUPERSTORES HAD ZOOMED OUT OF NOWHERE TO BECOME COMPUTING'S FASTESTGROWING SALES CHANNEL THEY OFFERED IMPROVED SERVICE DEPARTMENTS AND BETTER TRAINED SALES STAFFS THAN EARLIER COMPUTER RETAILERS GREG HARRIS PURCHASED PCS FROM DELL FOR A TORRANCE CALIF COMPANY THAT MAKES LOCK BOXES FOR REAL ESTATE AGENTS BUT NEW MACHINES FOR HIS PERSONAL USE WILL COME FROM RETAILERS IT'S A LOT EASIER TO BUY SOMETHING WHEN YOU CAN PUT YOUR HANDS ON IT HE SAYS THAT'S PARTICULARLY TRUE ANALYSTS SAY FOR FIRSTTIME PC BUYERS WHO HAVE SWARMED INTO THE MARKET IN THE PAST YEAR AS PRICES HAVE FALLEN AND COMPUTERS HAVE BECOME SOMEWHAT EASIER TO USE LACKING CONFIDENCE IN THEIR TECHNICAL KNOWHOW FIRSTTIME CUSTOMERS ARE RELUCTANT TO BUY SOMETHING SIGHT UNSEEN CERTAINLY NOBODY IS PREDICTING THE DEMISE OF MAIL ORDER MR DIGUIDO NOTES THAT THOUSANDS OF HIS MAGAZINES ARE SOLD THROUGH COMPUTER SUPERSTORES MEANING THAT RETAIL CUSTOMERS STILL HAVE AN INTEREST IN MAILORDER BUYING RICK APPLE VICE PRESIDENT OF MARKETING AT ZEOS INTERNATIONAL IN MINNEAPOLIS SAYS THOUSANDS OF CUSTOMERS REMAIN DEVOTED TO THE MAILORDER CHANNEL HE NOTES THOUGH THAT ZEOS IS ALSO MOVING TO BROADEN ITS DISTRIBUTION NETWORK THERE'S A NATURAL LIMIT AT PLAY HERE SAYS BARBARA KRUMLAND WHO RAN COMPAQ'S MAILORDER BUSINESS BEFORE JOINING IOMEGA CORP A UTAH DISKDRIVE COMPANY LAST MONTH MS KRUMLAND WHO SAYS SHE LEFT COMPAQ FOR A BETTER OPPORTUNITY IN A PART OF THE COUNTRY SHE PREFERS SAYS IT BECAME CLEAR EVEN TO HER PEERS AT COMPAQ THAT THE MAILORDER BUSINESS HAS BUILTIN INSURMOUNTABLE HURDLES THERE ARE CERTAIN TIMES WHEN YOU JUST WANT TO HAVE THE ABILITY TO BROWSE SHE SAYS COMPUADD CORP EMERGED FROM BANKRUPTCYCOURT PROCEEDINGS IN NOVEMBER A FACT THAT WAS OMITTED FROM AN ARTICLE YESTERDAY ON THE MAILORDER PERSONAL COMPUTER BUSINESS 9312010098 931201 REDEFINITIONS IN A BROKENDOWN WORLD BY LINDA BURTON I WANT US TO STOP REDEFINING THINGS THIS IS A TREND THAT I HAVE NOTICED HAS BEEN ESCALATING FOR MANY YEARS EVER SINCE I WOKE UP ONE MORNING TO HEAR JANE PAULEY SUGGESTING ON THE AIR THAT WE AMERICANS NEEDED TO REDEFINE THE WORD FAMILY HER SCHOLARLY GUEST AT THE TIME AS I RECALL RESPONDED I COULD REDEFINE PEANUT BUTTER FOR YOU IF YOU WANTED JANE BUT IT'S STILL PEANUT BUTTER THIS IS HOW I FEEL ABOUT EVERYTHING ELSE WE KEEP TRYING TO REDEFINE OVER THE PAST FEW MONTHS I HAVE HEARD PEOPLE SUGGEST WE REDEFINE HUMAN SEXUALITY CHILDREARING MARRIAGE THE FAMILY AGAIN THE ARTS THE BUDGET DEFICIT AMERICAN HISTORY A PUBLICSCHOOL EDUCATION AND THE AMERICAN MIDDLE CLASS IT IS MUCH EASIER AND MORE COMFORTABLE TO REDEFINE A PROBLEM AS SOME NEW KIND OF STATUS QUO IN THE NAME OF KEEPING UP WITH THE TIMES THAN IT IS TO ADMIT THAT YOUR SOCIAL INSTITUTIONS ARE FAILING AMERICA NEEDS TO HAUL OUT ITS RESTORATION EXPERTS TO REBUILD THE ORIGINAL LONGSTANDING DEFINITIONS OF OUR INSTITUTIONS THE FAMILY IS YES STILL THE FAMILY IN ITS MOST DESIRABLE FORM IT CONTINUES TO BE A MOM AND DAD KIDS AND GRANDPARENTS AUNTS AND UNCLES AND COUSINS WITH ACCOMPANYING DOGS AND KITTENS AND HAMSTERS WHEN OUR FAMILIES BREAK DOWN WE SHOULD NOT ATTEMPT TO ASSUAGE THE NATIONAL GUILT BY CALLING THEM SOME NEW KIND OF FAMILY THEY'RE BROKENDOWN FAMILIES SURELY BY NOW THE EVIDENCE IS UNIMPEACHABLE ON THE SUSTAINED TRAUMA CREATED BY DIVORCE AND MULTIPLE MARRIAGES TRADITIONAL FAMILIES ARE STILL THE NORM NOT THE RARE EXCEPTION AS HAS BEEN CLEARLY DEMONSTRATED IN RECENT STUDIES EXPOSING THE SERPENTINE JUGGLING OF STATISTICS PERPETRATED IN THE NAME OF PROVING THAT ANYTHING GOES IN THE WORLD OF AMERICAN FAMILIES ANYTHING DOES NOT GO NO MATTER HOW CONVENIENT OR SOOTHING AN IDEA IT MAY BE CHILDREARING CANNOT BE REDEFINED AS THE RESPONSIBILITY OF DAYCARE WORKERS AND SCHOOLS IF WE NOW FIND OURSELVES ECONOMICALLY FORCED INTO THE POSITION OF FARMING AMERICA'S CHILDREN OUT TO DAYCARE INSTITUTIONS WE NEED TO STOP AND ASK WHAT'S GONE WRONG AND HOW WE CAN FIX IT KIDS NEED THEIR PARENTS THEY SHOULD BE ABLE TO HAVE THEM THE ARTS ARE NOT PORNOGRAPHY THEY ARE THE ARTS IN THEIR MOST ENDURING FORM OUR MUSIC DANCE ART AND THEATER WILL MIRROR THE SOULS OF THE PEOPLE SOMETIMES THIS IS ELEVATING AND SOMETIMES IT'S DEPRESSING BUT IF IT REPRESENTS THE TRUTH IN A WAY THAT CONNECTS WITH THE TRUTH OF OTHER HUMAN BEINGS THEN IT IS CERTAINLY ART PORNOGRAPHY ON THE OTHER HAND DEBASES AND DEFILES THE HUMAN EXPERIENCE IN AN EFFORT TO DISTORT AND BEGUILE WE CANNOT REDEFINE THE TRUTH OF ART TO INCLUDE THE ARTIFICE AND DECEIT OF PORNOGRAPHY THEY'RE NOT THE SAME THING EDUCATION IS SUPPOSED TO BE AN OPPORTUNITY TO INQUIRE AND TO LEARN OUR SCHOOLS ARE NOT VEHICLES FOR REARING CHILDREN OR FOR INDOCTRINATING THEM INTO AN ACCEPTED SET OF POLITICAL BELIEFS A GOOD SCHOOL IS THERE TO TEACH KIDS HOW TO THINK CRITICALLY SO THEY ARE ABLE TO MAKE GOOD CHOICES AND INTELLIGENT DECISIONS IN THEIR LIVES MOST RECENTLY I HEARD A PROMINENT TV NEWSCASTER SUGGEST THAT JOURNALISM ITSELF NEEDED TO BE REDEFINED BECAUSE THE AMERICAN PEOPLE DIDN'T HAVE MUCH RESPECT FOR JOURNALISTS ANYMORE IF THE AMERICAN PEOPLE DON'T LIKE WHAT JOURNALISM HAS BECOME THEN WE SHOULD FIND WAYS TO RESTORE HIGHER VALUES TO THE PROFESSION INSTEAD OF REDEFINING JOURNALISM TO INCLUDE THE RIGHT OF THE PRESS TO VIOLATE THE PUBLIC TRUST ALL OF THIS IS REALLY SIMPLE COMMON SENSE WHEN YOUR WASHING MACHINE BREAKS DOWN DO YOU REDEFINE IT AS SOME NEW KIND OF WASHING MACHINE THAT IS ABLE TO COMPENSATE FOR ITS REDUCED ABILITY TO WASH THE CLOTHES WITH ITS IMAGINATIVE NEW POSSIBILITIES AS A WISHING WELL OR FISH TANK NO YOU SAY HEY THIS CAN'T WASH THE CLOTHES ANYMORE LET'S FIX IT LET'S STOP REDEFINING WHAT'S WRONG WITH AMERICA LET'S FIX IT MS BURTON LIVES IN SEYMOUR ILL 9312010096 931201 APPLE'S COMMITMENT TO GAY EMPLOYEES UPSETS TEXAS COUNTY COMPANY IS LIKELY TO RELOCATE PROPOSED SERVICE FACILITY AFTER LOSING TAXRELIEF BID BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF APPLE COMPUTER INC SAID IT MAY CANCEL PLANS TO BUILD A HUGE COMPUTERSERVICES PLANT IN WILLIAMSON COUNTY TEXAS AFTER COUNTY COMMISSIONERS SPURNED APPLE'S REQUEST FOR TAX RELIEF BECAUSE OF APPLE'S POLICY SUPPORTING PARTNERS OF ITS GAY EMPLOYEES THE COMMISSION'S 32 VOTE DENYING APPLE'S BID FOR TAX ABATEMENT YESTERDAY HINGED ON APPLE'S DOMESTICPARTNERS POLICY AN APPLE SPOKESWOMAN SAID SINCE JULY THE PERSONALCOMPUTER MAKER HAS PROVIDED MEDICAL BENEFITS TO DOMESTIC PARTNERS OF ITS GAY EMPLOYEES THE VOTE WHICH FOLLOWS ANTIGAY VOTER INITIATIVES IN COLORADO AND ELSEWHERE IN THE WEST COULD HAVE A RIPPLE EFFECT AS MANY SILICON VALLEY HIGHTECH FIRMS HAVE CHOSEN TO LOCATE PLANTS IN AND AROUND AUSTIN TEXAS APPLE'S PLANNED SITE IS NORTHEAST OF AUSTIN UNFORTUNATELY IT CAME DOWN TO THE ISSUE OF HOMOSEXUALITY OR ECONOMIC GROWTH SAID COMMISSIONER GREG BOATRIGHT WHO VOTED AGAINST APPLE'S BID WILLIAMSON COUNTY IS A CONSERVATIVE COUNTY MR BOATRIGHT ADDED IN A TELEPHONE INTERVIEW FROM HIS HOME IN LIBERTY HILL TEXAS THE CONSTITUENCY I REPRESENT FEELS WE NEED TO PRESERVE TRADITIONAL FAMILY VALUES THAT IS ALSO MY PERSONAL CONVICTION WE WERE VERY DISAPPOINTED WITH THE RESULTS OF THE VOTING TODAY AN APPLE SPOKESWOMAN SAID NOW WE'RE REGROUPING BUT IT'S UNLIKELY THAT WE'LL LOCATE IN WILLIAMSON COUNTY UNLESS THE TAX ABATEMENTS ARE APPROVED SHE EMPHASIZED WE DO NOT INTEND TO CHANGE OUR DOMESTIC PARTNERS' BENEFITS POLICY BECAUSE OF THE WILLIAMSON COUNTY VOTE THE TAXRELIEF MEASURE WAS WORTH A TOTAL OF 750000 TO APPLE PHASED IN OVER SEVEN YEARS THAT'S NOT A VAST SUM ONE INDUSTRY OBSERVER COMMENTED THIS IS REALLY ABOUT APPLE'S PRINCIPLES APPLE IS ALL THE MORE PIQUED BECAUSE ITS PRESENCE IN TEXAS WAS VIGOROUSLY COURTED BY THE TEXAS STATE CHAMBER OF COMMERCE APPLE CURRENTLY HOUSES 700 EMPLOYEES WHO WERE DESTINED FOR THE NEW PLANT IN A LEASED FACILITY IN AUSTIN BUT IT SAYS THEIR LONGTERM FATE IS NOW IN LIMBO THE IRONY IS THAT THIS APPLE PROJECT IS A PROJECT WHICH CENTRAL TEXAS OUR ORGANIZATION AND THE TEXAS GOVERNOR WENT AFTER AS AGGRESSIVELY AS WE'VE GONE AFTER ANY PROJECT FOR SOME TIME SAID GLEN E WEST PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE GREATER AUSTIN CHAMBER OF COMMERCE SO IT IS DISAPPOINTING TO US THERE'S A STUMBLING BLOCK IN WASHINGTON GAYRIGHTS AND CIVILLIBERTIES GROUPS DENOUNCED THE COUNTY COMMISSION'S DECISION PEOPLE FOR THE AMERICAN WAY A GROUP DEFENDING CONSTITUTIONAL LIBERTIES SAID IN A STATEMENT THAT THIS DECISION TO PUNISH APPLE LIKELY WILL MAKE OTHER BUSINESSES THINK TWICE ABOUT MOVING INTO WILLIAMSON COUNTY THAT'S QUITE AN ECONOMIC PRICE TO PAY ON ACCOUNT OF PREJUDICE 9312010095 931201 TEXAS JOURNAL ECONOMIC FOCUS THE CRYSTAL BALL A GOOD BUT NOT GREAT CHRISTMAS BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS RETAILERS CAN EXPECT A MERRY CHRISTMAS THIS YEAR BUT NOT QUITE A RAPTUROUS ONE THAT AT LEAST IS THE CONSENSUS FORECAST OF NINE ECONOMISTS WHO MONITOR THE STATE'S VITAL SIGNS IN A SURVEY THE NINE PREDICT YULETIDE SALES WILL RISE BETWEEN 49 AND 84 THIS YEAR IN TEXAS WITH A MEAN ESTIMATE OF 65 THAT'S A SHADE HIGHER THAN WHAT'S EXPECTED FOR THE US AS A WHOLE BUT SLIGHTLY OFF THE 83 PACE IN TEXAS FOR DECEMBER OF 1992 STILL CONSIDERING LAST YEAR'S STRONG INCREASE A 65 JUMP WOULD BE PRETTY HEALTHY AND A SIGN THAT CONSUMER CONFIDENCE IS ON THE REBOUND AGAIN AS ALWAYS THE OUTLOOK IS BETTER IN SOME PARTS OF TEXAS THAN OTHERS IN THE AUSTINSAN ANTONIO CORRIDOR WHERE EMPLOYMENT IS UP SHARPLY MOST EXPERTS ARE LOOKING FOR RETAIL SALES TO LEAP AS MUCH AS 10 THIS CHRISTMAS HOUSTON STILL STUCK IN THE OILPATCH SLUMP WILL LIKELY BE CLOSER TO HALF THAT WHILE DALLASFORT WORTH IS EXPECTED TO SPLIT THE DIFFERENCE AND THE BORDER REGION IS STILL SUFFERING FROM MEXICAN LIMITS ON THE VALUE OF GOODS THAT CAN BE BROUGHT BACK FROM THE US FOLLOWING ARE HIGHLIGHTS OF THE FORECASTS M RAY PERRYMAN PRESIDENT PERRYMAN CONSULTANTS INC WACO CONSUMER CONFIDENCE IS COMING BACK A LITTLE BIT SAYS MR PERRYMAN WHO PREDICTS GROWTH OF SOMEWHERE AROUND 7 THIS DECEMBER HE CREDITS STEADY JOBGROWTH FIGURES IN MOST PARTS OF THE STATE AS WELL AS THE PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT FOR THE RENEWED OPTIMISM I THINK NAFTA HAS GIVEN A FEELGOOD FEELING AND JOBGROWTH FIGURES HAVE GIVEN A FEELGOOD FEELING HE SAYS MAGNUS KPAKOL SENIOR ECONOMIST JC PENNEY CO PLANO WE EXPECT TEXAS TO BE STRONG SAYS MR KPAKOL ESTIMATING THAT SALES OF GENERAL MERCHANDISE AND APPAREL IN THE STATE WILL BE UP 6 TO 65 IN THE FOURTH QUARTER COMPARED WITH THE SAME PERIOD LAST YEAR JC PENNEY EXPECTS INDUSTRY SALES IN THOSE CATEGORIES TO RISE 6 IN THE US OVERALL THE TEXAS NUMBERS COULD BE EVEN STRONGER HE SAYS IF MEXICAN OFFICIALS RESCIND THE 50 LIMIT ON THE VALUE OF MERCHANDISE THAT CAN BE BROUGHT INTO THE BORDER AREA DUTYFREE OUR STORES WERE DEVASTATED LAST YEAR WHEN THE MEASURE WAS IMPOSED HE SAYS KEITH PHILLIPS ECONOMIST FEDERAL RESERVE BANK OF DALLAS WITH DECREASES IN INTEREST RATES MORE AND MORE CONSUMERS HAVE GOTTEN THEIR PERSONAL FINANCES IN BETTER SHAPE AND MAY DECIDE TO SPEND SOME MORE THIS HOLIDAY SEASON SAYS MR PHILLIPS WHO EXPECTS ABOUT A 7 JUMP IN FOURTHQUARTER RETAIL SALES HERE HE SAYS THE DALLASFORT WORTH AREA SHOULD BE FAIRLY STRONG WITH GAINS OF ABOUT 7 WHILE THE HOLIDAYS IN HOUSTON SHOULD BE PRETTY SLUGGISH DUE TO WEAKNESS IN THE OIL SECTOR JAMES F SMITH FINANCE PROFESSOR KENANFLAGLER BUSINESS SCHOOL UNIVERSITY OF NORTH CAROLINA CHAPEL HILL THERE'S NO WAY IN THE WORLD THIS CHRISTMAS SELLING SEASON WILL MISS BEING THE GREATEST IN THE HISTORY OF TEXAS AND THE ENTIRE UNITED STATES FOR THAT MATTER SAYS MR SMITH WHO EXPECTS 8 GROWTH THIS YEAR IT SHOULD BE TERRIFIC BECAUSE PEOPLE ARE WORKING AND THEY'RE EARNING MONEY HE SAYS WE HAVE THIS TRULY BIZARRE SITUATION IN WHICH PEOPLE ARE SAYING THEY'RE NOT AT ALL CONFIDENT BUT NOW'S A GREAT TIME TO BUY STUFF JON HOCKENYOS MANAGING DIRECTOR TEXAS PERSPECTIVES INC AUSTIN IN GENERAL I THINK THINGS ARE GOING TO BE PRETTY GOOD SAYS MR HOCKENYOS WHO PREDICTS 84 GROWTH IN THE FOURTH QUARTER IN TEXAS IN FOUR RETAIL CATEGORIES GENERAL MERCHANDISE APPAREL FURNITURE AND HOME FURNISHINGS AND MISCELLANEOUS THAT COMPARES WITH A 10 GROWTH RATE IN THOSE CATEGORIES IN LAST YEAR'S FOURTH QUARTER THERE IS SOME SLUGGISHNESS NOW IN EARLY CHRISTMAS SEASON HIRING MR HOCKENYOS SAYS BUT THAT'S A TREND WE'VE OBSERVED OVER THE LAST COUPLE YEARS IT ISN'T A VERY GOOD INDICATOR AT THIS POINT VICTOR GRADO ASSOCIATE ECONOMIST DRI/MCGRAWHILL LEXINGTON MASS MODERATE GROWTH IS IN STORE FOR TEXAS ON THE ORDER OF 49 DURING THE FOURTH QUARTER MR GRADO SAYS I THINK PEOPLE ARE STILL WORRIED ABOUT JOBS THE DALLASFORT WORTH AREA WILL BE A BIT LOWER THAN THE STATE AVERAGE HE SAYS BECAUSE THEY'RE STILL SUFFERING A BIT OF A HANGOVER FROM DEFENSE CUTS RECENTLY JARED HAZLETON DIRECTOR CENTER FOR BUSINESS AND ECONOMIC ANALYSIS TEXAS A&M UNIVERSITY COLLEGE STATION I DON'T EXPECT TO SEE A BOOM BECAUSE INCOMES AREN'T GROWING AS MUCH AS IN THE PAST SAYS MR HAZLETON WHO EXPECTS CHRISTMAS SALES TO GROW 6 IN TEXAS STILL HE ADDS IT'S BETTER THAN WE MIGHT HAVE EXPECTED SIX MONTHS AGO THE ECONOMY HAS GOTTEN A LITTLE BETTER BUT MAINLY PEOPLE ARE MORE INURED TO LAYOFFS AND RESTRUCTURINGS AND ACCEPT THAT UNCERTAINTY IS A WAY OF LIFE HE SAYS ECONOMISTS' PREDICTIONS FOR CHRISTMAS SEASON RETAILSALES GROWTH IN TEXAS FURNISHINGS AND MISCELLANEOUS 9312010094 931201 BUSINESS BRIEF AVON PRODUCTS INC COMPANY TO RAISE 5 MILLION FOR BREASTCANCER PROGRAMS AVON PRODUCTS INC SAID IT PLANS TO RAISE MORE THAN 5 MILLION TO SUPPORT COMMUNITYBASED BREASTCANCER PROGRAMS THAT FOCUS ON EARLY DETECTION AND EDUCATION SERVICES ESPECIALLY FOR LOWINCOME AND MINORITY WOMEN THE BEAUTYPRODUCTS COMPANY SAID ONE OF ITS FIRST PROGRAMS IN THE FIVEYEAR BREAST CANCER AWARENESS CRUSADE WILL BE THE BREAST HEALTH ACCESS FUND WHICH WILL GIVE GRANTS TO NONPROFIT GROUPS THAT HELP REACH WOMEN WHO ARE UNDERSERVED THE FUND TO BE ADMINISTERED BY AVON AND THE NEW YORKBASED NATIONAL ALLIANCE OF BREAST CANCER ORGANIZATIONS WILL GIVE ITS INITIAL GRANTS TOTALING 250000 IN MARCH MOSTLY IN ONEYEAR GRANTS OF 5000 TO 20000 EACH SUCH PROGRAMS FREQUENTLY ARE RUN BY COMMUNITY CLINICS CHURCHES COMMUNITY AND WOMEN'S CENTERS AVON WON'T DIRECTLY FUND MEDICAL SERVICES AVON'S FIVEYEAR PROGRAM WILL BE FUNDED BY SALES OF PINKRIBBON PINS 9312010093 931201 REVIEW & OUTLOOK EDITORIAL ASIDES TALE OF TWO SCANDALS THE POLITICAL CLOUD ED ROLLINS'S BOASTING CAST OVER CHRISTIE WHITMAN'S VICTORY IN NEW JERSEY BEGAN TO LIFT THIS WEEK DEMOCRATS WITHDREW THEIR LAWSUIT TO OVERTURN HER ELECTION AFTER CONCEDING THEIR PRIVATE DETECTIVES HADN'T TURNED UP PROOF OF VOTER SUPPRESSION AT THE SAME TIME THE US JUSTICE DEPARTMENT BEGAN AN INVESTIGATION INTO A MORE SUBSTANTIVE CASE OF VOTER FRAUD IN A PHILADELPHIA ELECTION THAT DETERMINED CONTROL OF THE STATE SENATE MORE THAN 100 HISPANIC VOTERS HAVE REPORTED THEY WERE MISLED INTO CASTING ILLEGAL ABSENTEE BALLOTS BY DEMOCRATIC WORKERS SIGNATURES ON AT LEAST 19 BALLOTS APPEAR TO HAVE BEEN FORGED INVESTIGATIONS IN BOTH STATES WILL CONTINUE BUT THE INTEREST OF PROSECUTORS IF NOT THE NATIONAL MEDIA SEEMS ON THE WHOLE NOW TO BE IN PHILADELPHIA 9312010092 931201 LETTERS TO THE EDITOR VOUCHERS NO THREAT TO PRIVATE SCHOOLS ON YOUR OCT 25 EDITORIAL PAGE RONALD L TROWBRIDGE A HILLSDALE MICH COLLEGE VICE PRESIDENT EXPRESSED GRAVE CONCERN FOR THE FUTURE INDEPENDENCE OF PRIVATE ELEMENTARY AND SECONDARY SCHOOLS IN AMERICA MR TROWBRIDGE FEARS THAT THE SCHOOL VOUCHER MOVEMENT NOW GAINING NATIONAL MOMENTUM RAPIDLY WILL CREATE A DEVIL'S BARGAIN FOR PRIVATE SCHOOLS HE FEARS THAT VOUCHERS GOOD FOR PRIVATE SCHOOL TUITION WILL COME WITH ENTANGLING FEDERAL AND STATE REQUIREMENTS ATTACHED NO VOUCHER FUND WITHOUT CERTIFIED COMPLIANCE WITH WHATEVER IS CURRENTLY POLITICALLY CORRECT MR TROWBRIDGE BOLDLY PREDICTS THAT TRULY PRIVATE PRIMARY AND SECONDARY SCHOOLS WILL BECOME VIRTUALLY EXTINCT IF A VOUCHER PROGRAM IS ESTABLISHED THEIR INDEPENDENCE SNUFFED OUT BY A SMOTHERING GOVERNMENTAL BLANKET OF MANDATORY COMPLIANCE WITH AFFIRMATIVE ACTION DIVERSITY AND TRENDY CURRICULAR STANDARDS INDEPENDENT SCHOOLS HAVE NOTHING TO FEAR FROM VOUCHERS ON THE CONTRARY VOUCHERS WILL STIMULATE THE DEVELOPMENT OF A GROWING MARKETPLACE OF PRIVATE SCHOOLS FUELED BY PARENTS WIELDING EDUCATION DOLLARS LIBERATED FROM A GOVERNMENT MONOPOLY THOSE PARENTS SEEKING TO FREE THEIR CHILDREN AND THEIR MONEY FROM THE DISHEARTENING FAILURES OF THE PUBLIC SECTOR EDUCATIONAL SYSTEM WILL CREATE AN INCREASINGLY POWERFUL POLITICAL MOVEMENT WHEN THIS FORCE HAS GROWN STRONG ENOUGH TO BREAK THE GOVERNMENT'S CURRENT MONOPOLIZATION OF THE EDUCATIONAL ESTABLISHMENT THIS MOVEMENT WILL ALSO HAVE THE POWER TO RESIST ANY EFFORT TOWARD RETALIATORY REGULATION OF INDEPENDENT SCHOOLS MR TROWBRIDGE IS CORRECT TO RAISE THE ISSUE THAT CREEPING REGULATION OF PRIVATE SCHOOLS MIGHT WELL BECOME A POLITICAL TACTIC OF THE GOVERNMENT EDUCATIONAL BUREAUCRACY BUT SUCH AN APPROACH WILL NOT SUCCEED AGAINST THE GROWING POWER OF PARENTS ADD TO THAT THE TRADITIONAL STRENGTH OF INDEPENDENT SCHOOL LEADERS WHO WILL REMAIN A VITAL FORCE IN RESISTING ANY REGULATORY EFFORT TO DIMINISH THEIR EDUCATIONAL EXCELLENCE AND SCHOOL CHOICE ADVOCATES WILL HAVE ALL THE POLITICAL POWER NEEDED TO PRESERVE AND ENHANCE THE EXCELLENCE OF AMERICA'S INDEPENDENT SCHOOLS 9312010091 931201 TECHNOLOGY & HEALTH SEX EDUCATION CURBS ARMORS TEEN ARDOR HEALTH OFFICIAL SAYS WHO DISMISSES THE BELIEF THAT COURSES CONDOMS LEAD TO RISE IN PROMISCUITY BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SEX EDUCATION DOESN'T FIRE TEENS' LIBIDO A HEALTH OFFICIAL SAID BUT MORE OFTEN MAKES THEM COOL CURB OR ARMOR THEIR ARDOR THE WORLD HEALTH ORGANIZATION'S AIDS CHIEF MICHAEL MERSON ATTACKED THE LONGHELD BELIEF THAT SEX EDUCATION AND CONDOM AVAILABILITY FUELS PROMISCUITY CITING 35 STUDIES THAT LARGELY CONCLUDE THE OPPOSITE IS TRUE YOUNG PEOPLE MORE OFTEN DELAY OR REDUCE THEIR SEXUAL ACTIVITY OR ADOPT SAFER SEX PRACTICES TO PROTECT THEMSELVES FROM PREGNANCY AND SEXUALLY TRANSMITTED DISEASES THE WHO OFFICIAL SAID DR MERSON'S SALVO WHICH IS SURE TO RILE THE RELIGIOUS RIGHT WAS TIMED TO COINCIDE WITH WORLD AIDS DAY TODAY THE ANNUAL OBSERVANCE MARKING THE EPIDEMIC'S INEXORABLE PROGRESS WHILE SEX EDUCATION REMAINS HOTLY DEBATED AND EMOTIONALLY CHARGED THE WHO OFFICIAL INSISTED IT IS TIME TO STOP ARGUING IF WE CARE FOR OUR CHILDREN WE MUST GIVE THEM THE KNOWLEDGE AND THE SKILLS TO PROTECT THEMSELVES FROM THE RISK OF HIV INFECTION THE STUDIES ARE CRITICAL BECAUSE WHO FIGURES THAT AT LEAST HALF OF THE ESTIMATED 10 MILLION HIV INFECTIONS WORLDWIDE OCCURRED IN YOUTH BETWEEN AGES 15 AND 24 AN AGE GROUP COMPRISING ONE BILLION PEOPLE OR ONEFIFTH OF THE WORLD'S POPULATION INFECTIONS AMONG YOUNG PEOPLE ARE DRIVING THIS EPIDEMIC DR MERSON SAID WE COULD MAKE A REAL DIFFERENCE AND SLOW THE SPREAD OF HIV IF WE LEARN TO BE OPEN AND FRANK WITH YOUNG PEOPLE WHO NOTES THE US HAS MORE TEEN PREGNANCY THAN COUNTRIES WITH FRANK EDUCATION PROGRAMS LIKE CANADA ENGLAND WALES SWEDEN THE NETHERLANDS OR FRANCE AMONG THE 35 STUDIES WHO FOUND 10 STUDIES SHOWED SEX EDUCATION PROMOTES SAFER SEX PRACTICES INCLUDING CONDOM USE SIX STUDIES SHOWED IT MAY DELAY SEXUAL INITIATION OR DECREASE SEXUAL ACTIVITY TWO STUDIES SAID COUNSELING AND CONTRACEPTIVES DIDN'T HASTEN OR BOOST SEXUAL ACTIVITY MORE THAN A DOZEN STUDIES FOUND SEX EDUCATION NEITHER INCREASED NOR DECREASED ACTIVITY HOWEVER TWO STUDIES REACHED CONTRARY CONCLUSIONS REPORTING LINKS BETWEEN SEX ED AND SEXUAL INITIATION OR FREQUENCY DR MERSON SAID IN AN INTERVIEW THAT HE RESPECTS TRADITIONALISTS WHO BELIEVE SEX EDUCATION SHOULD BEGIN AT HOME BUT UNFORTUNATELY HE ADDED NOT ALL PARENTS TALK TO THEIR KIDS AND WE WOULDN'T WANT OUR YOUNG PEOPLE TO DIE OF IGNORANCE 9312010089 931201 YIELDS ON CDS SHOWED LITTLE CHANGE IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 274 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCHED UP TO 445 FROM 443 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS EASED TO 323 FROM 327 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLID TO 452 FROM 461 ACCORDING TO THE SURVEY ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLIPPED TO 281 FROM 283 ON FIVEYEAR JUMBOS THE AVERAGE REMAINED AT 464 ACCORDING TO BANXQUOTE 9312010088 931201 CREDIT RATINGS MATTEL SETS DIVIDEND COMPLETES ACQUISITION OF FISHERPRICE INC LOS ANGELES MATTEL INC DECLARED A 25 STOCK DIVIDEND AND SAID IT COMPLETED ITS 11 BILLION ACQUISITION OF FISHERPRICE INC THE NEW STOCK DIVIDEND WILL GIVE SHAREHOLDERS OF RECORD DEC 17 ONE ADDITIONAL SHARE OF MATTEL COMMON STOCK FOR EVERY FOUR SHARES HELD THE SHARES WILL BE ISSUED JAN 7 1994 A SPOKESMAN FOR THE TOY COMPANY SAID THE MOVE DEMONSTRATES CONFIDENCE IN THE FUTURE OF A NEWLY ENLARGED MATTEL THE PERFORMANCE OF BOTH COMPANIES SEPARATELY HAS BEEN STRONG AND WE THINK THERE ARE BETTER OPPORTUNITIES IN THE COMBINED COMPANY THAT WE'RE DEMONSTRATING TO SHAREHOLDERS HE SAID AS REPORTED EACH SHARE OF FISHERPRICE COMMON STOCK WILL BE SWAPPED FOR 1275 SHARES OF MATTEL COMMON STOCK IN A TAXFREE EXCHANGE MATTEL CURRENTLY HAS 96 MILLION COMMON SHARES OUTSTANDING AND WILL HAVE 142 MILLION COMMON SHARES OUTSTANDING AFTER THE STOCK SWAP MATTEL'S BOARD ALSO SAID IT WILL MAINTAIN ITS REGULAR QUARTERLY DIVIDEND OF SIX CENTS A SHARE IN 1994 AMOUNTING TO THE EQUIVALENT OF A 25 DIVIDEND INCREASE BEGINNING IN THE SECOND QUARTER OF 1994 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE MATTEL SHARES CLOSED YESTERDAY AT 3050 A SHARE UP 1 9312010087 931201 TEXAS JOURNAL THE TRUCKS ARE ESPECIALLY USEFUL ON KICK RETURNS BY SCOTT MCCARTNEY DALLAS IN THE TEXAS PICKUP WARS FORD AND CHEVY DEALERS AGREE ON ONE THING THE BEST WAY TO SELL TRUCKS TO NORTH TEXANS IS WITH COWBOYS OR MAKE THAT COWBOYS THE ONES WITH HELMETS NOT HATS FORMER DALLAS COWBOY RANDY WHITE WHO HAS PITCHED CHEVY TRUCKS IN LOCAL TV ADS FOR YEARS IS JOINED THIS FALL BY CURRENT COWBOY JIM JEFFCOAT THE CHEVY ADS NEVER MENTION THE TEAM HOWEVER BECAUSE FORD IS THE COWBOYS' OFFICIAL TRUCK MAKER TO DRIVE THAT CONNECTION HOME THE NORTH TEXAS FORD DEALERS ASSOCIATION RECENTLY BEGAN SELLING A LIMITEDEDITION TRUCK IN COWBOYS SILVER AND BLUE AMENITIES INCLUDE FLOOR MATS EMBROIDERED WITH COWBOYS HELMETS SALES OF THE TRUCK BUILT BY ALL THOSE COWBOYS FANS AT FORD'S KANSAS CITY MO PLANT HAVE BEEN PRETTY BRISK SAYS MIKE MORISETTE SENIOR ACCOUNT EXECUTIVE WITH WB DONER & CO AN ARLINGTON AD AGENCY INVOLVED IN THE TRUCK CAMPAIGN SUCH PROMOTIONS ARE RARE BECAUSE A TEAM CAN START LOSING OR OTHERWISE ALIENATE FANS LEAVING DEALERS STUCK WITH OUTOFFAVOR VEHICLES WOULD ANYBODY IN OHIO FOR INSTANCE BUY A CLEVELAND BROWNS TRUCK RIGHT NOW BECAUSE THE COWBOYS HAVE SUCH A STRONG AND LOYAL FOLLOWING WE FELT IT WAS WELL WORTH THE RISK MR MORISETTE SAYS IT DOESN'T HURT THAT THE COWBOYS WON LAST SEASON'S SUPER BOWL AND HAVE A LEGITIMATE CHANCE TO REPEAT STILL WHILE FORD NEGOTIATED THE PROMOTION IN JUNE IT DIDN'T START SELLING THE TRUCK UNTIL OCTOBER AFTER STAR RUNNING BACK EMMITT SMITH ENDED HIS CONTRACT HOLDOUT AND THE COWBOYS BEGAN WINNING AGAIN 9312010086 931201 MARKETING & MEDIA TIME WARNER IS SAID TO CONSIDER BUYING 10 OF TV BROADCASTER IN HONG KONG BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG TIME WARNER INC IS CONSIDERING THE PURCHASE OF A 10 STAKE IN HONG KONGBASED TELEVISION BROADCASTS LTD EXECUTIVES FAMILIAR WITH THE DISCUSSIONS SAID THE PURCHASE OF THE STAKE WOULD HELP TIME WARNER TAP A POTENTIALLY HUGE MARKET FOR CHINESELANGUAGE TELEVISION AND WOULD MAKE THE US COMPANY THE LATEST BIG MEDIA CONCERN TO TAP THE ASIAN TELEVISION MARKET THE PROPOSED DEAL COULD BE VALUED AT AS MUCH AS US150 MILLION ONE OF THE EXECUTIVES SAID TELEVISION BROADCASTS SHARES CLOSED TUESDAY AT 2690 HONG KONG DOLLARS UP 90 HONG KONG CENTS AT THAT PRICE A 10 STAKE IN TVB WOULD BE VALUED AT ABOUT HK113 BILLION US146 MILLION SK FUNG MANAGING DIRECTOR OF TVB'S INTERNATIONAL DISTRIBUTION ARM WOULDN'T COMMENT OTHER THAN TO CONFIRM THAT TVB HAS HELD TALKS WITH A NUMBER OF COMPANIES WE TALK TO A LOT OF PEOPLE AND A LOT OF PEOPLE ARE INTERESTED IN US MR FUNG SAID IN NEW YORK A SPOKESMAN FOR TIME WARNER DECLINED TO COMMENT TVB BILLS ITSELF AS THE WORLD'S LARGEST PRODUCER OF CHINESELANGUAGE TV PROGRAMMING THE COMPANY IS HONG KONG'S DOMINANT TERRESTRIAL BROADCASTER AND RECENTLY LAUNCHED A SATELLITETV SERVICE IN TAIWAN TIME WARNER AND TVB ARE ALSO IN TALKS AIMED AT ESTABLISHING A JOINT ASIAN TV PRODUCTION AND DISTRIBUTION COMPANY THE SOURCES SAID SHOULD THAT DEAL BE APPROVED TIME WARNER COULD INVEST AN ADDITIONAL US20 MILLION ACCORDING TO A PERSON FAMILIAR WITH THE NEGOTIATIONS IT'S UNCLEAR WHETHER TIME WARNER IS ACTING ALONE OR IN CONCERT WITH OTHER INTERNATIONAL BROADCASTERS HBO PACIFIC PARTNERS A JOINT VENTURE BETWEEN TIME WARNER'S HOME BOX OFFICE INC UNIT AND PARAMOUNT COMMUNICATIONS INC IS PART OF A SEVENMEMBER CONSORTIUM THAT IS COOPERATING ON DISTRIBUTION AND MARKETING OF PROGRAMMING IN ASIA THE OTHER CONSORTIUM MEMBERS ARE TVB TURNER BROADCASTING SYSTEM INC CAPITAL CITIES/ABC INC'S ESPN INC DISCOVERY COMMUNICATIONS INC VIACOM INC AND TIME WARNER ENTERTAINMENT A SEPARATE TIME WARNER UNIT THE CONSORTIUM IS EXPECTED TO ANNOUNCE LATE TODAY THAT IT HAS REACHED AN AGREEMENT TO LEASE CAPACITY ON THE APSTAR2 SATELLITE FROM HONG KONGBASED APT SATELLITE CO WHOSE SHAREHOLDERS INCLUDE THREE CHINESE GOVERNMENT MINISTRIES MEMBERS OF THE GROUP HAVE ALREADY AGREED TO LEASE SATELLITE CAPACITY ON THE APSTAR1 SATELLITE WHICH IS DUE TO BE LAUNCHED IN MID1994 APSTAR2 IS SCHEDULED TO BE LAUNCHED IN DECEMBER 1994 IN LATE AUGUST MICHAEL J SOLOMON PRESIDENT OF WARNER BROS INTERNATIONAL TELEVISION DISTRIBUTION ANOTHER TIME WARNER UNIT SAID THE COMPANY INTENDED TO PRODUCE CHINESELANGUAGE PROGRAMMING IN ASIA EITHER ALONE OR IN PARTNERSHIP WITH LOCAL COMPANIES MR SOLOMON SAID AT THE TIME THAT WARNER BROS WAS WILLING TO SPEND WHATEVER IT TAKES TO ESTABLISH ITSELF AS A MAJOR PRODUCER OF MAJOR CHINESELANGUAGE PRODUCTIONS ANY FOREIGN COMPANY WISHING TO PURCHASE MORE THAN 2 OF TVB WOULD BE REQUIRED BY HONG KONG LAW TO SEEK PERMISSION FROM EITHER THE COLONY'S BROADCASTING AUTHORITY OR ITS EXECUTIVE COUNCIL WHICH FUNCTIONS AS THE GOVERNOR'S CABINET 9312010085 931201 TATE WITHDRAWS AS NOMINEE TO HEAD RTC CRITICIZES SEN RIEGLE FOR INACTION BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STANLEY TATE WITHDREW AS PRESIDENT CLINTON'S NOMINEE TO HEAD THE GOVERNMENT'S BELEAGUERED RESOLUTION TRUST CORP SAYING HE WAS DENIED THE CHANCE TO ADDRESS SERIOUS WASTE AND MISMANAGEMENT AT THE THRIFTRESCUE AGENCY MR TATE A REPUBLICAN REALESTATE DEVELOPER FROM FLORIDA CRITICIZED SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH FOR REFUSING TO ACT ON HIS NOMINATION THE WHITE HOUSE PICKED MR TATE IN MIDJULY TO TAKE CHARGE OF THE SAVINGSANDLOAN BAILOUT BUT YESTERDAY IN A LENGTHY LETTER TO THE PRESIDENT AND IN A NEWS CONFERENCE HE SAID SEN RIEGLE NEVER RETURNED ANY OF HIS PHONE CALLS OR AGREED EVEN TO MEET WITH HIM IN WASHINGTON A NOMINEE IS DISPENSABLE AND DISPOSABLE MR TATE COMPLAINED CITING DEVASTATING ACCUSATIONS MADE ABOUT HIM THAT HE SAYS AREN'T TRUE NEWS REPORTS HAVE SAID MR TATE TRIED TO LOOK INTO AN ENFORCEMENT CASE AGAINST A FAILED FLORIDA THRIFT ONCE RUN BY AN ACQUAINTANCE OF HIS IT ALSO WAS DISCLOSED THAT HE HAD ATTENDED A USUALLY PRIVATE MEETING OF AN AGENCY ETHICS PANEL CONSIDERING CHARGES OF IMPROPER CONDUCT BY LAW FIRMS SEN RIEGLE SAID YESTERDAY THAT SEVERAL SERIOUS QUESTIONS HAD BEEN RAISED REGARDING THE TATE NOMINATION NOTING THE NEWS REPORTS CONCERNING MR TATE'S ACTIVITY AT THE RTC THE BANKING PANEL HAS BEEN GATHERING INFORMATION ON THESE AND OTHER MATTERS OF CONCERN RELATED TO THE NOMINATION AS IS ITS NORMAL PRACTICE MR RIEGLE SAID EARLIER MR RIEGLE HAD SAID HE WOULDN'T MOVE TO CONFIRM MR TATE UNTIL HE WAS ASSURED THAT RTC MANAGEMENT PROBLEMS CITED BY 13 AGENCY WHISTLEBLOWERS IN A SEPTEMBER BANKING PANEL HEARING WERE BEING SOLVED IN RESPONSE MR TATE SAID THAT THE BEST WAY TO DEAL WITH RTC MANAGEMENT FLAWS WOULD BE TO CONFIRM HIM SO THAT HE COULD TACKLE THE JOB MR TATE SAID THAT DURING A STINT AS TEMPORARY SENIOR ADVISER TO THE RTC WHILE AWAITING CONFIRMATION HE UNCOVERED SUBSTANTIAL EVIDENCE OF POSSIBLE FRAUD AS WELL AS WASTE AND POOR MANAGEMENT HE SAID HE WOULD HAVE PRESENTED THAT EVIDENCE AT HIS SENATE CONFIRMATION HEARING HE SAID THAT HE SUBSEQUENTLY PLANNED TO RELEASE THAT MATERIAL IN A BOOK OF MORE THAN 200 PAGES UPON ANNOUNCING HIS WITHDRAWAL BUT THAT THE TREASURY DEPARTMENT INSISTED THAT THE MATERIAL BE KEPT CONFIDENTIAL MR TATE SAID VERY HIGHLEVEL TREASURY OFFICIALS WARNED THAT HE SHOULD ISSUE ONLY A BRIEF WITHDRAWAL STATEMENT OR HE WOULD BE DRAGGED THROUGH THE MUD HE SAID HE WOULD HAVE TO TALK TO HIS ATTORNEY ABOUT RELEASING HIS RTC BOOK LATER IF THE TREASURY DOESN'T MAKE IT PUBLIC JOAN LOGUEKINDER A TREASURY SPOKESWOMAN SAID DEPARTMENT OFFICIALS ARE CONCERNED THAT THE BOOK MAY RAISE PRIVACY ISSUES WHETHER ANY EDITED VERSION MIGHT BE RELEASED LATER IS HARD TO SAY SHE SAID SHE ALSO ACKNOWLEDGED THAT MR TATE WAS WARNED THAT A SPLASHY PUBLIC WITHDRAWAL MIGHT SPUR OTHERS TO RAISE NEW QUESTIONS ABOUT HIS COMPETENCE THE ADMINISTRATION DOESN'T APPEAR LIKELY TO NOMINATE AN ALTERNATIVE RTC CHIEF ANY TIME SOON WE REALLY WEREN'T PREPARED WITH A BACKUP LIST SO WE'LL HAVE TO START THE PROCESS AGAIN MS LOGUEKINDER SAID THE RTC HAS BEEN WITHOUT A FULLTIME CHIEF EXECUTIVE SINCE MARCH THOUGH DEPUTY TREASURY SECRETARY ROGER ALTMAN HAS TAKEN ON THE JOB AS AN ADDED DUTY MR TATE HAS BEEN CRITICIZED FOR ALLEGED HEAVYHANDED INTRUSION IN RTC AFFAIRS WHILE HE WAS THE NOMINEE SOME LOWERLEVEL RTC OFFICIALS HAVE SAID HE HAS A DOMINEERING INTIMIDATING STYLE THAT OFFENDS UNDERLINGS YESTERDAY MR TATE SAID THAT MANY RTC PEOPLE AND OTHERS OUTSIDE THE AGENCY ARE AFRAID OF ME AND OBVIOUSLY AFRAID OF WHAT CHANGES TO THE SYSTEM I MIGHT BRING ABOUT HE ALSO CHARGED THAT THE RTC HAS SUFFERED FROM GROSS MISMANAGEMENT BECAUSE NONE OF ITS FULLTIME TOP PEOPLE ARE FROM PRIVATE BUSINESS AND THEY DON'T KNOW HOW TO NEGOTIATE WHILE MANAGEMENT AND CONTRACTING REFORMS PROPOSED FOR THE RTC BY TREASURY SECRETARY LLOYD BENTSEN AND MR ALTMAN ARE VERY CLEAN AND VERY GOOD HE SAID YOU NEED A FULLTIME HANDSON PERSON YOU CANNOT DO IT FROM THREE BLOCKS AWAY 9312010084 931201 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CHAMPION INTERNATIONAL CORP A SHELF OFFERING OF UP TO 500 MILLION OF DEBT SECURITIES VIA GOLDMAN SACHS & CO JP MORGAN SECURITIES INC AND SALOMON BROTHERS INC PENN TRAFFIC CO AN OPERATOR OF SEVERAL SUPERMARKET CHAINS A SHELF OFFERING OF UP TO 400 MILLION OF NEW DEBT PEOPLE'S CHOICE TV CORP AN OFFERING OF ONE MILLION COMMON SHARES VIA GERARD KLAUER MATTISON & CO SHUFFLE MASTER INC AN OFFERING OF ONE MILLION COMMON SHARES VIA KENNEDY MATHEWS LANDIS HEALY & PECORA INC SIGMATRON INTERNATIONAL INC AN OFFERING OF 11 MILLION COMMON SHARES USA MOBILE COMMUNICATIONS HOLDING INC AN INITIAL OFFERING OF FIVE MILLION COMMON SHARES AND AN OFFERING OF UP TO 90 MILLION OF SENIOR NOTES VIA NOMURA SECURITIES INTERNATIONAL INC AND BRENNER SECURITIES CORP 9312010083 931201 WHO'S NEWS ICF KAISER INTERNATIONAL INC ICF KAISER INTERNATIONAL INC FAIRFAX VA ALVIN S RAPP 53 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ICF KAISER ENGINEERS INC UNIT OF THIS ENGINEERING CONSTRUCTION AND CONSULTINGSERVICES COMPANY A POSITION VACANT SINCE LAST MAY MR RAPP WAS A REGIONAL GROUP VICE PRESIDENT OF JACOBS ENGINEERS GROUP INC AN ENGINEERING AND CONSTRUCTION CONCERN 9312010082 931201 CHIP OFF THE ROCK PARTNERSHIP PROBLEMS AT PRUDENTIAL EMBROIL INSURANCE BUSINESS TOO HARD SELL OF RISKY SECURITIES WAS LUCRATIVE BUT NOW FIRM'S LIABILITY MAY RISE GEORGE BALL'S EARLY WARNING BY GREG STEINMETZ AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SINCE ERECTING THE ROCK AS AN ADVERTISING SYMBOL IN 1896 PRUDENTIAL INSURANCE CO OF AMERICA HAS TAKEN PAINS TO PROJECT A SOLID CONSERVATIVE IMAGE BUT THE LIMITEDPARTNERSHIP DEBACLE AT ITS PRUDENTIAL SECURITIES INC UNIT SHOWS HOW THE NATION'S LARGEST INSURER SOMETIMES AIMS FOR THE FAST BUCK PRUDENTIAL INSURANCE PLAYED A FAR MORE ACTIVE ROLE IN RISKY PARTNERSHIPS IMPROPERLY MARKETED BY PRUDENTIAL SECURITIES THAN EARLIER BELIEVED ACCORDING TO A REVIEW OF SEVERAL THOUSAND PAGES OF THE SUBSIDIARY'S DOCUMENTS INCLUDING INTERNAL MEMOS SALES BROCHURES AND TAPES AS PREVIOUSLY REPORTED THE BIG INSURER'S ROLE NOW IS BEING EXAMINED BY THE US ATTORNEY'S OFFICE IN MANHATTAN SOME PRUDENTIAL INSURANCE AGENTS IMPROPERLY SOLD PARTNERSHIPS WITHOUT APPROPRIATE LICENSES THROUGH A COMMISSIONSHARING SCHEME WITH BROKERS AT PRUDENTIALBACHE SECURITIES INC AS THE BROKERAGE UNIT WAS KNOWN AS BEFORE A 1991 NAME CHANGE THE PARENT COMPANY RECEIVED ROYALTIES FOR AMONG OTHER THINGS HELPING TO FINANCE 21 MILLION OF PARTNERSHIP PROPERTIES AND IT CONTINUED RECEIVING FAT UPFRONT PARTNERSHIP FEES TOTALING AT LEAST 777 MILLION FROM 1983 THROUGH 1990 FOR PRUDENTIAL INSURANCE AND ITS AFFILIATES WHILE APPARENTLY IGNORING EARLY WARNING SIGNS THAT THE PARTNERSHIPS COULD STUMBLE IN A REMARKABLY BLUNT 1984 MEMO TO ALL MANAGERS AND BROKERS GEORGE BALL THENPRUBACHE CHAIRMAN AND A MEMBER OF PRUDENTIAL INSURANCE'S EXECUTIVE COMMITTEE WARNED OF POTENTIAL FLOPS FOLLIES AND FAILURES AMONG THE PARTNERSHIPS EVEN AS PRUDENTIAL INSURANCE AGENTS AND PRUBACHE BROKERS WERE AGGRESSIVELY PROMOTING THE PARTNERSHIPS AS SAFE INVESTMENTS TO HUNDREDS OF THOUSANDS OF INVESTORS EVEN AFTER THE MEMO MR BALL CONTINUED TO URGE HIS SALES FORCE TO SELL PARTNERSHIPS FOR SIX MORE YEARS THE HUNGER FOR COMMISSIONS THAT ALLOWED THE PARTNERSHIP PROBLEM TO FESTER ALSO IS EVIDENT AT PRUDENTIAL INSURANCE ITSELF SOME INSURANCE AGENTS SAY PRUDENTIAL HAS HIRED INSURANCE AGENTS WITH QUESTIONABLE PASTS AND HAS COME UNDER FIRE FOR WHAT SOME ALLEGE ARE MISLEADING SALES TACTICS THE ACTIVITIES OF PRUDENTIAL INSURANCE AND ITS BROKERAGE UNIT PRESENT A CASE STUDY IN HOW A STODGY CORPORATE IMAGE CAN SOMETIMES MASK A FAR MORE AGGRESSIVE REALITY WHAT IRKS MANY INVESTORS NOW IS THAT PRUDENTIAL INSURANCE WAS USED AS A MAJOR MARKETING TOOL IN PROMOTING THE PRUBACHE PARTNERSHIPS THIS WAS THE ROCK SAYS J BOYD PAGE AN ATLANTA ATTORNEY REPRESENTING LIMITEDPARTNERSHIP CLAIMANTS AGAINST PRUDENTIAL SECURITIES THE PRUDENTIAL NAME WAS PROBABLY THE MOST POWERFUL MECHANISM IN SELLING THESE PARTNERSHIPS WITNESS THIS PRUBACHE SALES SCRIPT FOR ENERGY PARTNERSHIPS YOUR 10000 IS SAFE WHY PRUDENTIAL LIFE INSURANCE COMPANY IS THE LARGEST INVESTOR IN THEIR OWN PROGRAM THEY ARE PUTTING THEIR MONEY WHERE THEIR MOUTH IS WOULDN'T YOU AGREE THAT'S A COMMITMENT FROM PRUDENTIAL A 1986 SALES SCRIPT FOR PRUDENTIAL REALTY ACQUISITION FUND II PARTNERSHIP INSTRUCTED PRUBACHE BROKERS TO TELL INVESTORS REMEMBER THE GENERAL PARTNER IS PRUDENTIAL SOLID AS A ROCK PRUDENTIAL INSURANCE THE SCRIPT CONTINUES IS THE LARGEST PRIVATE OWNER OF REAL ESTATE IN THE WORLD WITHOUT QUESTION THE STRONGEST GENERAL PARTNER IN EXISTENCE GET A PIECE OF THE ROCK THE ROCK'S MARKETING CLOUT WAS A MAJOR SELLING TOOL THE FAMOUS LOGO WHICH STILL APPEARS IN THE BROKERAGE UNIT'S ADS WAS PATTERNED ON DEPENDING WHOM YOU BELIEVE EITHER THE ROCK OF GIBRALTAR OR A BOULDER NEXT TO A HIGHWAY THAT LEADS TO NEW YORK CITY FROM THE INSURER'S NEWARK NJ HEADQUARTERS IN A 1984 PROMOTIONAL TAPE FOR INVESTORS IN THE PRUBACHE ENERGY PARTNERSHIPS WITH THE ROCK AS A BACKDROP A VOICEOVER PROMISES THAT EVERY PARTNERSHIP PROPERTY IS APPROVED BY PRUDENTIAL INSURANCE ITSELF MANY OF PRUDENTIAL'S NOWBITTER CUSTOMERS ARE RETIREES WHO BOUGHT THE PARTNERSHIPS AS AN EQUIVALENT TO SAFE CERTIFICATES OF DEPOSIT I GREW UP WITH THE PRU TO ME IT WAS THE GREATEST INSURANCE COMPANY SAYS LORETTA RUPERT A 76YEAROLD CAPE CORAL FLA WIDOW NOW AFTER LOSING NEARLY ALL OF HER 90000 SAVINGS IN SOURED PRUBACHE PARTNERSHIPS MS RUPERT SHUDDERS TO SEE THE PRUDENTIAL ROCK ON TELEVISION SOMETHING TURNS INSIDE OF ME WHEN I SEE IT SHE SAYS MS RUPERT HAS A CLAIM PENDING WITH PRUDENTIAL SECURITIES AND MAY RECOUP PART OF HER LOSS PRUBACHE SOLD ABOUT 8 BILLION OF PARTNERSHIPS TO 340000 INVESTORS INVESTORS HAVE RECEIVED ABOUT 3 BILLION IN DISTRIBUTIONS PLUS RESIDUALS THE PARTNERSHIPSWHICH INVESTED IN WIDERANGING VENTURES INCLUDING REAL ESTATE ENERGY HORSES AND AIRCRAFT WERE LUCRATIVE FOR PRUDENTIAL INSURANCE AND ITS AFFILIATES THEY RECEIVED UPFRONT FEES OF 15 OF PARTNERSHIP PROCEEDS FROM COMMISSIONS ACQUISITION AND FINDER'S FEES PLUS ORGANIZATION AND OFFERING COSTS THESE COVERED AMONG OTHER THINGS BROKERS' SALES INCENTIVES SUCH AS TRIPS TO SPAIN HAWAII SWITZERLAND PARIS LONDON AND GERMANY'S OCTOBERFEST NOW THE PARTNERSHIP PROBLEMS ARE SHAKING THE ROCK IN OCTOBER PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM AGREED TO PAY AT LEAST 371 MILLION TO SETTLE FEDERAL AND STATE CHARGES THAT IT IMPROPERLY SOLD THE PARTNERSHIPS THE LARGESTEVER REGULATORY SETTLEMENT WITH INDIVIDUAL INVESTORS OF THAT AMOUNT 330 MILLION WILL GO INTO A RESTITUTION FUND BUT THE FIRM'S LIABILITY IS OPENENDED DEPENDING ON HOW MANY CLAIMS ARE BROUGHT SOME REGULATORS AND ANALYSTS BELIEVE THE TOTAL SETTLEMENT LIABILITY WILL EXCEED 1 BILLION FLEMING HOVENKAMP & GRAYSON A HOUSTON LAW FIRM CLAIMS ITS 8000 CLIENTS ALONE ARE OWED 224 MILLION IN PARTNERSHIP DAMAGES BETWEEN PRU AND ITS PARENT THEY'RE GOING TO HAVE TO COME UP WITH AT LEAST 1 BILLION AND MAYBE MORE TO GET THESE THINGS SETTLED PREDICTS PERRIN LONG A BROKERAGEINDUSTRY ANALYST AT FIRST OF MICHIGAN CORP EXECUTIVES AT PRUDENTIAL SECURITIES AND ITS PARENT SAY THE 330 MILLION WILL BE SUFFICIENT TO HANDLE THE INVESTOR CLAIMS THE EXECUTIVES BLAME TAXLAW CHANGES COUPLED WITH SLUMPING REALESTATE AND ENERGY MARKETS FOR THE BULK OF THE PARTNERSHIP LOSSES THEY DENY ANY SUGGESTION THAT THEY TOLD PRUBACHE'S 6000 BROKERS TO PLAY DOWN THE RISKS OF PARTNERSHIPS AS THEY WERE PLAYING UP THE SAFETY OF THE ROCK CERTAINLY NOT FROM MY LIPS AND TO THE BEST OF MY KNOWLEDGE NOT FROM THE LIPS OF OTHERS MR BALL SAYS NOW WHAT WE WERE ENCOURAGING WAS DIVERSIFICATION PRUDENTIAL INSURANCE REMAINS A FORMIDABLE FINANCIAL FORCE WITH 1996 BILLION IN ASSETS LAST YEAR IT HAD REVENUE OF 45 BILLION AND A NET WORTH OF ABOUT 10 BILLION STANDARD & POOR'S CORP RECENTLY AFFIRMED THE RATING ON THE COMPANY'S ABILITY TO PAY INSURANCE CLAIMS AT DOUBLEAPLUS ONE OF ITS HIGHEST GRADES S&P ALSO AFFIRMED ITS SINGLEAPLUS/A1 DEBT RATING FOR PRUDENTIAL SECURITIES SAYING THE BROKERAGE FIRM HAS SUFFICIENT FINANCIAL RESOURCES TO MEET ITS COMMITMENTS UNDER THE SETTLEMENT STILL THE PARTNERSHIPS HAVE COST PRUDENTIAL SECURITIES A BUNDLE IN THE PAST FOUR YEARS THE FIRM HAS SET ASIDE NEARLY 800 MILLION IN RESERVES FOR LITIGATION BY ANGRY PARTNERSHIP INVESTORS INCLUDING THE 330 MILLION RESTITUTION FUND PRUDENTIAL SECURITIES EXECUTIVES SAY AND EVEN AFTER RESERVES OF ABOUT 215 MILLION THIS YEAR PRUDENTIAL SECURITIES EXPECTS RECORD 1993 NET INCOME OF ABOUT 150 MILLION PRUDENTIAL INSURANCE HAS TRIED TO DISTANCE ITSELF FROM INVOLVEMENT IN THE PARTNERSHIPS YET THE INSURER INVESTED 54 MILLION IN THE FIRST 15 ENERGY PARTNERSHIP DEALS SOLD BY PRUBACHE PRUDENTIAL INSURANCE ABRUPTLY STOPPED INVESTING IN THE PARTNERSHIPS IN 1986 CITING STATE REGULATORY CONCERNS ASIDE FROM THESE CONCERNS THERE WERE OTHER ISSUES MATTHEW CHANIN A SENIOR PRUDENTIAL INSURANCE EXECUTIVE AND A DIRECTOR AT PRUDENTIALBACHE ENERGY PRODUCTION INC A PRUDENTIAL AFFILIATE AND GENERAL PARTNER OF THE ENERGY PARTNERSHIPSSAID IN A SEPTEMBER 1986 LETTER THAT THE INSURANCE COMPANY WAS WORRIED ABOUT SLUMPING ENERGY PRICES AND PUNY PARTNERSHIP RETURNS OF 4 TO 5 YET EVEN AFTER THE INSURER PULLED OUT OF THE DEALS PRUBACHE LAUNCHED NEARLY 20 NEW ENERGY PARTNERSHIPS IN THE NEXT SEVERAL YEARS OFTEN PROMISING ANNUAL RETURNS OF 15 TO 20 MR CHANIN SURE DIDN'T LIVE UP TO HIS FIDUCIARY DUTY AS A DIRECTOR AND OFFICER OF THE LIMITED PARTNERSHIPS TO TELL INVESTORS OF HIS CONCERNS SAYS ROBERT REX A LAWYER IN BOCA RATON FLA WHO HAS FILED CLAIMS MR CHANIN DECLINES TO COMMENT PRUDENTIAL INSURANCE SAYS IT BELIEVES HE DID NOTHING WRONG ANN MCDONALD A LAWYER FOR PRUDENTIAL SECURITIES SAYS THE INSURER STOPPED INVESTING IN OIL AND GAS THROUGH THE PARTNERSHIPS PARTLY BECAUSE IT WANTED TO MAKE ITS ENERGY INVESTMENTS DIRECTLY THERE WAS NEVER A DECISION THAT THE FUNDS WERE GOOD ENOUGH FOR INVESTORS BUT NOT GOOD ENOUGH FOR PRUDENTIAL SHE SAYS THROUGH MR CHANIN PRUDENTIAL INSURANCE ALSO PLAYED A ROLE IN A BID BY PRUBACHE TO INFLATE PAYOUTS ON SOME OF ITS MONEYLOSING PARTNERSHIPS PRUBACHE DID THIS BY DISTRIBUTING BORROWED FUNDS TO INVESTORS INTERNAL PRUBACHE MEMOS SHOW MR CHANIN IN HIS ROLE AS A BOARD MEMBER OF PRUDENTIALBACHE ENERGY PRODUCTION APPROVED THE LOANS THAT SUPPORTED THE DISTRIBUTIONS TO INVESTORS SAYS WILLIAM JORDAN A FLORIDA STATE UNIVERSITY ACCOUNTING PROFESSOR WHO HAS TESTIFIED AS AN EXPERT WITNESS IN MANY PARTNERSHIP CASES THE PRUBACHE PARTNERSHIPS BORROWED JUST 57 MILLION FOR A HANDFUL OF TRANSACTIONS IN 1985 AND 1986 PRUDENTIAL SECURITIES EXECUTIVES SAY IN ONLY TWO INSTANCES IT SAYS DID PARTNERSHIP DISTRIBUTIONS FALL SHORT OF CASH FLOW AND THOSE INSTANCES INVOLVED BORROWING LESS THAN 1 MILLION AND WERE LATER DISCLOSED TO INVESTORS THE BORROWING WAS APPROPRIATE PRUDENTIAL SECURITIES SAYS BECAUSE IT WAS FOR CAPITAL ITEMS PRUDENTIAL INSURANCE ALSO HELPED FINANCE ABOUT 21 MILLION OF PROPERTIES FOR SEVEN ENERGY PARTNERSHIPS PEOPLE FAMILIAR WITH THE TRANSACTIONS SAY IN ADDITION TO A FINDER'S FEE PRUDENTIAL INSURANCE CHARGED A 1 ROYALTY OVERRIDE ON ALL THE SALES THAT CAME OUT OF THOSE PROPERTIES MR JORDAN SAYS THAT'S A BIG CHUNK OF MONEY CONSIDERING THAT THE PARTNERSHIPS PERFORMED POORLY HE SAYS PRUDENTIAL INSURANCE CONTENDS THAT THE ROYALTY WAS ONLY 05 AND SAYS IN A STATEMENT THE LOANS WERE REPAID IN FULL AFTER THE PROPERTIES WERE SOLD TO SUBSEQUENT PRUBACHE ENERGY PARTNERSHIPS AND THE OVERRIDING ROYALTY INTEREST WAS RETAINED BY PRUDENTIAL INSURANCE REGULATORS NOW ARE SCRUTINIZING THE ACTIVITIES OF PRUDENTIAL INSURANCE AGENTS IN SELLING THE PARTNERSHIPS FOR SEVERAL YEARS THROUGH 1991 THE INSURER HAD A COMMISSIONSHARING ARRANGEMENT BETWEEN ITS AGENTS AND PRUBACHE BROKERS SOME PRUDENTIAL INSURANCE AGENTS SOLD PARTNERSHIPS AND OTHER INVESTMENTS WITHOUT A REQUIRED SERIES 7 LICENSE REGULATORS SAY THEY CONCEALED THE IMPROPER TRADES BY RECORDING THEM AS SALES OF MUTUAL FUNDS WHICH THEY WERE LICENSED TO SELL SAYS DAVID TATMAN AN OREGON SECURITIES REGULATOR THE COMPANY HAS AGREED TO END THE PRACTICE THE JOINTMARKETING ARRANGEMENT HAS SPAWNED A NEW ROUND OF LITIGATION IN A LAWSUIT FILED AGAINST PRUDENTIAL INSURANCE LAST MONTH IN A COOK COUNTY ILL CIRCUIT COURT TWO INVESTORS ACCUSED AN AGENT OF SELLING THEM 600000 OF PRUBACHE PARTNERSHIPS WITHOUT A PROPER LICENSE ACCORDING TO THE SUIT WHICH SEEKS CLASSACTION STATUS PRUDENTIAL INSURANCE AND ITS AGENT RECEIVED ILLEGAL COMMISSIONS OF OVER 25000 AS THE RESULT OF PLAINTIFFS' PURCHASE OF THESE LIMITED PARTNERSHIP INTERESTS PRUDENTIAL SECURITIES SAYS THAT ONLY IN RARE INSTANCES DID AGENTS SELL PARTNERSHIPS WITHOUT PROPER LICENSES THE AGENT AT ISSUE WILLIAM NEUMANN DECLINES TO COMMENT PRUDENTIAL INSURANCE SAYS IT PLANS TO VIGOROUSLY DEFEND THE SUIT BOTH PRUDENTIAL INSURANCE AGENTS AND PRUBACHE BROKERS IMPROPERLY SOLD THE HIGHRISK PARTNERSHIPS TO INVESTORS SEEKING SAFETY REGULATORS SAY AFFIDAVITS FILED IN VARIOUS COURT CASES FROM ABOUT THREE DOZEN FORMER PRUBACHE BROKERS SAY THEY WERE URGED TO PLAY DOWN RISKS AND HAVE INVESTORS BUY PARTNERSHIPS WITHOUT RELYING ON THE FULLDISCLOSURE DOCUMENT KNOWN AS THE PROSPECTUS PRUBACHE BROKERS WERE ADVISED IN SALES SCRIPTS HOW TO PERSUADE VARIOUS INVESTOR TYPES TO BUY PARTNERSHIPS IN SELLING TO FRIENDLIES A 1987 SCRIPT TELLS AGENTS TO STRESS SAFETY AND GUARANTEES GIVE YOUR PERSONAL ASSURANCES ANOTHER SCRIPT ADVISES AGENTS TO AVOID GETTING BOGGED DOWN IN FACTS AND DETAILS MOVE QUICKLY PRUDENTIAL SECURITIES NOW SAYS THE SALES SHEETS WERE WRONG AND NOT REPRESENTATIVE OF OUR SALESPRACTICE POLICY PRUDENTIAL INSURANCE CLEARLY PUT PRESSURE ON ITS BROKERAGE UNIT TO MAKE MONEY WHEN PRUDENTIAL BOUGHT BACHE GROUP INC IN 1981 FOR 385 MILLION THE BROKERAGE FIRM'S SALES FORCE WAS THE LEAST PRODUCTIVE OF WALL STREET'S TOP FIRMS MR BALL'S MANDATE WAS TO GET THE BROKERS TO SELL MORE THE PARTNERSHIP PUSH CAME AS PRUBACHE SUFFERED STEEP LOSSES IN THE EARLY 1980S AND BECAME THE BUTT OF JOKES AT PRUDENTIAL INSURANCE AT A 1984 RETIREMENT PARTY FOR A COLLEAGUE MR BALL WAS PRESENTED WITH A STATUE OF A MOTHER SUCKLING A CHILD THE MOTHER REPRESENTED PRUDENTIAL INSURANCE AND THE INFANT PRUBACHE SHED THE STATUE MR BALL LATER WROTE IN A MEMO TO BROKERS AND MANAGERS LOSSES SUCK SOME OF PRUDENTIAL'S 20000 INSURANCE AGENTS SAY THE ZEAL FOR COMMISSIONS THAT LED TO THE PARTNERSHIP MESS CAME FROM MOTHER PRU ITSELF THEY SAY THAT EVEN TODAY THEY ARE PROPELLED BY FEAR AS WELL AS COMMISSIONS AGENTS CAN BE PLACED ON PROBATION IF THEIR SALES RANK IN THE BOTTOM 20 OF THEIR PEER GROUP YOU WILL DO ANYTHING TO MAKE SURE YOU GET ENOUGH BUSINESS EVERY QUARTER SAID LARRY FLY AN OFFICIAL WITH A UNION REPRESENTING PRUDENTIAL AGENTS IN PHILADELPHIA THAT'S WHAT MAKES IT BAD FOR POLICYHOLDERS THE COMPANY DENIES THAT ITS SYSTEM ENCOURAGES SHADY SALES PRACTICES ASIDE FROM ITS PRUBACHE MESS PRUDENTIAL INSURANCE HAS ITS SHARE OF DISGRUNTLED POLICYHOLDERS THE COMPANY IS NOW BEING SUED BY 87 CUSTOMERS IN BUTLER COUNTY OHIO COMMON PLEAS COURT ALLEGING THAT FORMER AGENT ROBERT BISCHOF TRICKED THEM INTO BUYING POLICIES THEY COULDN'T AFFORD ONE POLICYHOLDER HOBERT ADAMS SAYS IN COURT PAPERS THAT MR BISCHOF PROMISED HIM A MORE VALUABLE INSURANCE POLICY AT NO ADDITIONAL COST BUT MR BISCHOF ALLEGEDLY FAILED TO DISCLOSE THAT MR ADAMS WOULD HAVE TO BORROW AGAINST HIS EXISTING POLICY TO MAKE THE PREMIUM PAYMENTS WHEN MR ADAMS ASKED ABOUT THE AUTHORIZATION FORMS MR BISCHOF WANTED HIM TO SIGN HE SAYS MR BISCHOF TOLD HIM THAT ALL PRUDENTIAL WANTS TO KNOW IS THAT YOU ARE STILL ALIVE ACCORDING TO COURT PAPERS MR ADAMS WHO IS 70 SAYS HE BELIEVED WHAT HE HEARD PARTLY BECAUSE OF PRUDENTIAL'S REPUTATION MY MOTHER AND FATHER HAD PRUDENTIAL INSURANCE HE SAYS IN AN INTERVIEW WE WOULDN'T HAVE HAD INSURANCE WITH A DIFFERENT COMPANY PRUDENTIAL HAS SINCE FIRED MR BISCHOF AND AGREED TO REFUND 300000 OF PREMIUMS TO MORE THAN 300 OF HIS CLIENTS MR BISCHOF COULDN'T BE REACHED FOR COMMENT AND HIS ATTORNEY DIDN'T RETURN REPEATED CALLS PRUDENTIAL DECLINES TO COMMENT ON THE LAWSUIT BUT SAYS THE BISCHOF SITUATION IS ISOLATED AND UNREPRESENTATIVE OF ITS SALES PRACTICES AT TIMES THE COMPETITION FOR COMMISSIONS HAS BEEN SO INTENSE THAT AGENTS HAVE TURNED ON EACH OTHER FRANCIS MITCHELL WAS A PRUDENTIAL AGENT FOR 19 YEARS IN THE SUBURBAN PHILADELPHIA OFFICE BEFORE BEING FIRED AFTER HIS SALES FELL HE BELIEVES HIS PRODUCTION DROPPED BECAUSE OTHER AGENTS IN HIS OFFICE TOOK CLIENTS BEHIND HIS BACK IN ONE OF SEVERAL GRIEVANCES FILED WITH HIS UNION MR MITCHELL ACCUSED HIS OFFICE MANAGER DAVID LEWIS OF DIVERTING ONE OF MR MITCHELL'S CLIENTS TO A NEW AGENT PRUDENTIAL MANAGERS EARN A BONUS BASED ON HOW MUCH BUSINESS IS WRITTEN BY NEW AGENTS AN ARBITRATION PANEL RULED IN MR MITCHELL'S FAVOR AND AWARDED HIM A 1000 COMMISSION MR LEWIS SAYS HE DOESN'T RECALL THE INCIDENT AND WOULDN'T TAKE A CUSTOMER AWAY FROM AN AGENT TO ENHANCE HIS BONUS PRUDENTIAL SECURITIES HAS BATTLED CRITICISM BY SOME REGULATORS THAT IT CODDLES BIG PRODUCERS WITH COMPLIANCE PROBLEMS BUT PRUDENTIAL INSURANCE SOMETIMES SEEMS WILLING TO IGNORE PAST INDISCRETIONS OF AN AGENT PARTICULARLY IF THE AGENT IS A TOP SELLER FOR INSTANCE IT RECENTLY HIRED ANTHONY AMARADIO WHOM EQUITABLE COS FIRED IN 1991 AFTER A STRING OF CUSTOMER COMPLAINTS MR AMARADIO'S LENGTHY DISCIPLINARY RECORD INCLUDES DOZENS OF ARBITRATIONS FILED AGAINST HIM BY CUSTOMERS IN A COMPLAINT AGAINST MR AMARADIO IN JUNE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ALLEGED HE HAD DEFRAUDED CUSTOMERS IN THE SALE OF INSURANCE POLICIES THROUGH HIS SECRETARY MR AMARADIO DECLINES TO COMMENT ON THE NASD COMPLAINT BUT IN LEGAL PAPERS HE DENIES CHEATING INDIVIDUAL CUSTOMERS SAYING THEY WERE FULLY INFORMED ABOUT THEIR INSURANCE POLICIES PRUDENTIAL SAYS IT REVIEWED MR AMARADIO'S RECORD BEFORE HIRING HIM AND FOUND NO EVIDENCE OF MISCONDUCT WILLIAM POWER CONTRIBUTED TO THIS ARTICLE 9312010081 931201 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA SHAREHOLDERS APPROVE PLAN FOR GROUP'S RESTRUCTURING SHAREHOLDERS OF FERRUZZI FINANZIARIA SPA APPROVED A RESTRUCTURING PLAN FOR THE AGROINDUSTRIAL GROUP INCLUDING A CAPITAL INCREASE OF 2484 TRILLION LIRE 147 BILLION ON MONDAY THE PLAN HAD BEEN APPROVED BY CREDITOR BANKS WHICH WILL BE SWAPPING SOME OF FERRUZZI'S DEBT FOR EQUITY TO AVOID A BANKRUPTCY OF ITALY'S SECONDLARGEST PUBLICLY TRADED INDUSTRIAL GROUP SHAREHOLDERS ALSO APPROVED A PROPOSAL TO SUE AUDITING FIRM PRICE WATERHOUSE FOR NEGLIGENCE PRICE WATERHOUSE CLAIMS THAT FERRUZZI'S FORMER MANAGEMENT HID CRUCIAL FINANCIAL INFORMATION FROM IT UNDER THE RESTRUCTURING PLAN THE DEBTLADEN FERRUZZI GROUP WILL CONCENTRATE ON THE CORE BUSINESSES OF AGROFOOD CHEMICALS AND ENERGY UNDER ITS LARGEST OPERATING UNIT MONTEDISON SPA AS WELL AS THE INSURANCE BUSINESS UNDER ITS INSURANCE UNIT FONDIARIA SPA OTHER BUSINESSES INCLUDING CEMENT CONSTRUCTION AND PUBLISHING WOULD BE SOLD FERRUZZI FINANZIARIA SHARES SURGED 2050 LIRE YESTERDAY TO 33050 LIRE ON NEWS OF THE PLAN'S ACCEPTANCE 9312010080 931201 ECONOMY DROP IN OIL PRICES IS LIKELY TO BENEFIT CONSUMERS BY KEEPING INFLATION LOW BY LUCINDA HARPER AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL THE SLIDE IN OIL PRICES WILL PROBABLY GIVE AMERICANS MORE PURCHASING POWER BY REDUCING THE ALREADY LOW INFLATION RATE ANALYSTS SAY THE ADDED BOOST COULD MAKE THE DIFFERENCE BETWEEN AN ECONOMY THAT SLOWS A BIT AT THE START OF THE YEAR AND ONE THAT CONTINUES TO GAIN MOMENTUM FROM A SURGE IN CONSUMER SPENDING BUT THAT BOOST TO CONSUMERS COULD COME PARTLY AT THE EXPENSE OF THE DOMESTIC OIL INDUSTRY OF COURSE THE ECONOMIC BENEFITS COULD BE SHORTLIVED IF OIL PRICES REBOUND SIGNIFICANTLY PRICES ACTUALLY ROSE SLIGHTLY YESTERDAY FOR THE FIRST TIME SINCE THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ENDED ITS MEETING LAST WEDNESDAY WITHOUT AGREEING TO REDUCE PRODUCTION STILL OIL PRICES HAVE BEEN SLIDING SINCE HITTING 18 A BARREL IN OCTOBER AND YESTERDAY'S GAIN WAS HARDLY ENOUGH TO ERASE THE STEEP LOSSES THAT HAVE OCCURRED IN THE LAST WEEK PUSHING OIL DOWN INTO THE 15ABARREL REGION SOME ECONOMISTS ESTIMATE THAT CONSUMERS WILL BEGIN TO FEEL THE BENEFIT OF LOWER OIL PRICES AS EARLY AS THIS MONTH BUT THAT IT WILL TAKE SIX MONTHS TO A YEAR FOR THE FULL IMPACT TO SET IN DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY ESTIMATES THAT THE OIL PRICE DECLINES IN RECENT DAYS WILL KNOCK ABOUT 02 PERCENTAGE POINT OFF THE CONSUMER PRICE INDEX IN DECEMBER AND ABOUT 04 PERCENTAGE POINT DURING 1994 THE CPI ROSE 04 IN OCTOBER THE LATEST FIGURES AVAILABLE AND 28 OVER THE LATEST 12MONTH PERIOD WHERE CONSUMERS ARE LIKELY TO SEE THE IMPACT SOONEST IS AT THE GASOLINE PUMP THE DROP IN GASOLINE PRICES WILL UNDOUBTEDLY OFFSET THE 43CENTAGALLON RISE IN THE FEDERAL GASOLINE TAX THAT TOOK EFFECT OCT 1 BUT CONSUMERS MIGHT NOT SEE THE IMPACT OF LOWER OIL PRICES ON THEIR HEATING BILLS UNTIL SPRING THAT'S BECAUSE WINTER IS THE PEAK OF THE HOME HEATING SEASON AND INCREASED DEMAND MAY KEEP OIL PRICES FIRM AND IF THERE IS A SNAP OF EXTREMELY COLD WEATHER PRICES COULD RISE SIGNIFICANTLY OIL PRICES HAVE A BIG IMPACT ON THE OVERALL RATE OF INFLATION ROUGHLY 7 OF THE CONSUMER PRICE INDEX IS MADE UP OF ENERGY PRICES AND 5 OF CONSUMER PURCHASES GO TOWARD ENERGY EXPENSES MOREOVER TRANSPORTATION COSTS ARE REFLECTED IN THE PRICES OF OTHER GOODS HOME HEATING OIL GAS AND UTILITIES ALL REFLECT THE PRICE OF CRUDE OIL THE DROP IN OIL PRICES COULD BE VERY SIGNIFICANT FOR THE US ECONOMY SAID WASHINGTON ECONOMIC CONSULTANT JOEL POPKIN HERE'S HOW ONE OF THE PROBLEMS WITH THIS RECOVERY IS THAT INCREASES IN INFLATIONADJUSTED WAGES HAVE BEEN SLUGGISH THAT'S ONE REASON SPENDING HAS BEEN RELATIVELY SUBDUED COMPARED WITH OTHER UPTURNS BUT LOW INFLATION IN GENERAL HAS BEGUN TO HAVE AN IMPACT ON CONSUMER SPENDING MR POPKIN'S RESEARCH SUGGESTS THAT DURING THE THIRDQUARTER THE FACT THAT PRICES CREPT UP EVEN MORE SLOWLY THAN INCOMES RELEASED 23 BILLION OF EXTRA SPENDING CAPACITY INTO THE ECONOMY FURTHER DECLINES IN INFLATION COULD PROVIDE AN EVEN LARGER LIFT IN THE MONTHS AHEAD IT COULD BE INCREDIBLY STIMULATIVE SAID CHARLES LIEBERMAN DIRECTOR OF FINANCIAL MARKETS RESEARCH FOR CHEMICAL SECURITIES INC THIS IS UNMITIGATED GOOD NEWS FOR THE CONSUMER ADDED JAMES SMITH PROFESSOR OF FINANCE AT THE UNIVERSITY OF NORTH CAROLINA'S BUSINESS SCHOOL THE DROP IN OIL PRICES IS OF COURSE WELCOME NEWS AT THE FEDERAL RESERVE BECAUSE IT IS ONE OF SEVERAL FACTORS THAT SHOULD RESTRAIN INFLATION AS THE ECONOMY PICKS UP MOMENTUM AND IF LOWER OIL PRICES HELP KEEP THE BOND MARKET HAPPY ALL THE BETTER FOR THE FED AND THE WHITE HOUSE IT'S GOING TO HELP THE ECONOMY QUITE A BIT FED BOARD MEMBER LAWRENCE LINDSEY SAID OF THE DECLINE IN OIL PRICES IT'S MAYBE GOING TO SAVE US A TENTH OF A PERCENTAGE POINT OR TWO ON INFLATION NEXT YEAR HE ADDED STILL THE FED IS WIDELY EXPECTED TO BEGIN RAISING SHORTTERM INTEREST RATES SOMETIME EARLY NEXT YEAR NO MATTER WHAT HAPPENS TO OIL PRICES THE BIG ISSUE IS TIMING ANY SIGNS OF A PICKUP IN THE INFLATION RATE WOULD LIKELY FORCE THE FED'S HAND SIGNS THAT INFLATION IS COMING DOWN ON THE OTHER HAND MIGHT DELAY THE INEVITABLE BUT MANY ECONOMISTS SAY THAT THE INCREASED ECONOMIC ACTIVITY FROM EXTRA SPENDING POWER MAY CAUSE INFLATION TO HEAT UP IN OTHER AREAS AND IF THE FED SEES OTHER MEASURES OF INFLATION SUCH AS THE CONSUMER PRICE INDEX MINUS VOLATILE FOOD AND ENERGY COSTS TURN UP FALLING OIL PRICES AREN'T LIKELY TO DISSUADE THE FED FROM TIGHTENING ITS GRIP ON CREDIT WHILE 15ABARREL PETROLEUM MAY BE GOOD FOR FUEL CONSUMERS AND BULLISH FOR THE US ECONOMY IT IS A FURTHER DRAIN ON ONE OF THE NATION'S BIGGEST INDUSTRIES THE OIL INDUSTRY STILL SUFFERS FROM THE PRICE CRASH OF 1986 WHEN THE BENCHMARK WEST TEXAS INTERMEDIATE CRUDE FELL 60 TO 10 A BARREL THE NUMBER OF OIL AND GAS COMPANIES HAS FALLEN BY 50 AND IS STILL SHRINKING AS A RESULT THE REMAINING 8000 OIL PRODUCERS FEEL THREATENED BY THE LATEST DROP IN PRICES ONE PRODUCER GEORGE ALCORN OF HOUSTON CALLED IT AN EXTREMELY DANGEROUS SITUATION BUT SOME SAY THE OIL PRICE PLUNGE TO FIVEYEAR LOWS MAY BE MORE DANGEROUS TO THE NATION THAN IT IS TO THE OIL INDUSTRY AS THE PRICE OF CRUDE DROPS FEWER OIL COMPANIES EXPLORE FOR IT AND THE DECLINE IN DOMESTIC PRODUCTION ACCELERATES AS A RESULT OIL IMPORTS ALREADY ACCOUNTING FOR HALF OF THE NATION'S TRADE DEFICIT CONTINUE TO RISE MUCH OF THE EXTRA OIL NEEDED BY THE US WILL COME FROM OPEC EVENTUALLY LEADING TO HIGHER CRUDE PRICES ANALYSTS SUGGEST IF CONSUMERS BEGIN USING THE INCREASED PURCHASING POWER DERIVED FROM LOWER INFLATION THE ECONOMY MAY PICK UP CONSIDERABLE STEAM DESPITE A WIDENING TRADE GAP MANY ANALYSTS ARE PREDICTING A FAIRLY ROBUST FOURTHQUARTER BUT A SLOWDOWN IN THE FIRST HALF OF NEXT YEAR BUT MR POPKIN SAID MANY PEOPLE'S FORECASTS COULD BE TOO LOW FOR THE FIRST PART OF 1994 9312010079 931201 MARKETING BRIEF NOSTALGIA NETWORK INC DIRECTORS WILL REVIEW BID FROM INTERNATIONAL FAMILY NOSTALGIA NETWORK INC LOS ANGELES SAID ITS DIRECTORS WOULD REVIEW A TENDER OFFER MADE BY INTERNATIONAL FAMILY ENTERTAINMENT TO ACQUIRE NOSTALGIA NOSTALGIA URGED SHAREHOLDERS NOT TO TENDER THEIR SHARES UNTIL THEY COULD CONSIDER THE BOARD'S RECOMMENDATION NOSTALGIA A BASICCABLE CHANNEL WITH PROGRAMMING AIMED AT VIEWERS 45 YEARS OLD AND OVER IS PARTLY OWNED BY CONCEPT COMMUNICATIONS INC AN AFFILIATE OF THE UNIFICATION CHURCH INTERNATIONAL FAMILY BASED IN VIRGINIA BEACH VA IS A MEDIA COMPANY FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON INTERNATIONAL FAMILY PROPOSED TO BUY NOSTALGIA IN OCTOBER AND LAST WEEK LAUNCHED DIRECTLY TO SHAREHOLDERS A TENDER OFFER OF 2 A COMMON SHARE NOSTALGIA HAS ABOUT 144 MILLION COMMON SHARES OUTSTANDING THE BID FOR NOSTALGIA TOTALS 296 MILLION 9312010078 931201 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE HONG KONG GOVERNMENT WILL AWARD THREE LICENSES FOR LOCAL TELEPHONE SERVICE IN THE BRITISH TERRITORY THOUGH THE NEW NETWORKS AREN'T EXPECTED TO START OPERATING UNTIL 1995 WHEN THE HONG KONG TELECOMMUNICATIONS LTD MONOPOLY EXPIRES THE MOVE IS PART OF THE GOVERNMENT'S SWEEPING LIBERALIZATION OF THE TELECOMMUNICATIONS SYSTEM WHICH HAS INCLUDED CLEARANCE FOR SATELLITE AND CABLE TELEVISION NETWORKS AND MOBILEPHONE OPERATIONS THE NEW LICENSES FOR FIXEDLINE VOICE AND DATA TRANSMISSIONS WILL ALLOW THREE GROUPS LED BY HUTCHISON WHAMPOA LTD WHARF HOLDINGS LTD AND NEW WORLD DEVELOPMENT LTD TO LAY FIBEROPTIC CABLE AND OFFER SUBSCRIBERS TELECOMMUNICATIONS SERVICES BEYOND SIMPLE PHONE CALLS FOR EXAMPLE MOVIES ON DEMAND BUT THE NEWCOMERS' ENTRY RAISED THE POSSIBILITY THAT A THREEWAY RIVALRY WILL FRAGMENT THE MARKET MAKING IT DIFFICULT FOR ANY CONSORTIUM TO GROW FAST ENOUGH TO COMPETE EFFECTIVELY WITH HONG KONG TELECOM OR TO OPERATE PROFITABLY THOUSANDS OF PEOPLE RALLIED THROUGHOUT THE PHILIPPINES TO PROTEST GOVERNMENT WAGE POLICIES ON THE ANNUAL HOLIDAY HONORING A 19TH CENTURY REVOLUTIONARY LEADER ANDRES BONIFACIO DEMONSTRATORS APPEALED FOR AN ACROSSTHEBOARD PAY RAISE FOR WORKERS IN THE PUBLIC AND PRIVATE SECTORS PRESIDENT FIDEL RAMOS OPPOSES SUCH AN INCREASE AND HAS ASKED REGIONAL GOVERNMENT WAGE BOARDS TO DETERMINE RAISES LOCALLY BUT COMPLIANCE WITH WAGE RULES IS SPOTTY FOR EXAMPLE MANY BUSINESSES PAY LESS THAN THE MINIMUM WAGE ESCALATING HIS WAR OF NERVES WITH CHINA HONG KONG GOV CHRIS PATTEN TOOK A STEP TOWARD ADVANCING A POLITICAL REFORM BILL THAT HAS FANNED A SINOBRITISH DISPUTE MR PATTEN GOT SUPPORT FROM THE BRITISH COLONY'S CABINET FOR A FIRST PHASE OF THE BILL TO BE INTRODUCED IN THE COLONIAL LEGISLATURE DETAILS COULD BE UNVEILED TOMORROW CHINA'S OPPOSITION TO THE PROPOSAL TO WIDEN PARTICIPATION IN LEGISLATIVE ELECTIONS HAS LED TO SIX MONTHS OF INCONCLUSIVE TALKS THE CONSTITUTIONAL STRUCTURE OF HONG KONG WHICH REVERTS TO CHINESE CONTROL IN 1997 IS SUBJECT TO SINOBRITISH NEGOTIATIONS ECUADOR IMPOSED A STATE OF EMERGENCY TO TRY TO END A STRIKE BY UNIONIZED TEACHERS THAT BEGAN OCT 4 THE 120000 PRIMARY AND SECONDARY SCHOOL TEACHERS FACED IMMEDIATE DISMISSAL UNLESS THEY RETURNED TO THEIR JOBS THE UNION WANTS A 50 PAY INCREASE THE GOVERNMENT HAS OFFERED 15 TEACHERS ARE PAID AN AVERAGE OF 100 A MONTH 25 OF PAY FOR A BANK CASHIER AND 13 OF THAT FOR AN ARMY OFFICER THE MONTHLY MINIMUM WAGE IS 41 THE ARMED FORCES WERE MOBILIZED TO PREVENT VIOLENT PROTESTS AND BACK THE EMERGENCY DECREE WHICH ALSO ALLOWS PRESS CURBS AND BANS DEMONSTRATIONS THE STRAND HOTEL IN THE COLONIAL CENTER OF RANGOON BURMA WAS REOPENED AFTER A THREEYEAR FACELIFT THE 32ROOM VICTORIAN HOTEL ESTABLISHED IN 1901 WAS GUTTED AND RESTORED BY NEW WORLD HOTELS INTERNATIONAL OF HONG KONG THE STRAND IN ITS HEYDAY ATTRACTED GUESTS SUCH AS THE WRITERS W SOMERSET MAUGHAM AND RUDYARD KIPLING THE HOTEL PROJECT WAS ONE OF THE FIRST JOINT VENTURES BETWEEN FOREIGN INTERESTS AND THE BURMESE GOVERNMENT SINCE IT BEGAN MARKET REFORMS IN 1988 EUROPEAN COMMUNITY TRANSPORT MINISTERS FAVORED AN EXAMINATION OF HOW TO RESTRICT CAPACITY ON SOME AIRLINE ROUTES THE OFFICIALS BACKING A FRENCH APPEAL FOR SHORTTERM STEPS TO STEM LOSSES OF 394 BILLION IN THE PAST THREE YEARS IN EUROPE'S MAINLY STATEOWNED AIRLINE INDUSTRY ALSO ASKED THE EC COMMISSION TO TAKE THIS INTO ACCOUNT WHEN APPLYING COMPETITION RULES THE COMMISSION IS CONSIDERING WHETHER SUBSIDIES TO FLAG CARRIERS IN FRANCE IRELAND AND PORTUGAL ARE COMPATIBLE WITH THE 12MEMBER TRADE BLOC'S SINGLE MARKET SHANGHAI CHINA'S BUSINESS AND CULTURAL CENTER IS ATTRACTING DROVES OF BUSINESS PEOPLE AND TOURISTS COINCIDING WITH EXPLOSIVE GROWTH IN HOTEL ROOMS FOREIGN VISITORS TO SHANGHAI LAST YEAR INCREASED 27 TO ABOUT 13 MILLION FROM 1991 AND MORE ARE EXPECTED THIS YEAR JAPANESE TRAVELERS LED THE PACK OF VISITORS FOLLOWED BY THOSE FROM THE US HONG KONG GERMANY AND FRANCE EIGHT INTERNATIONAL HOTELS OPENED IN THE PAST THREE YEARS THE NUMBER OF ROOMS IN TOPRATED PROPERTIES JUMPED 69 TO ALMOST 10000 LAST YEAR BRINGING THE TOTAL TO 25000 AND THE 1992 OCCUPANCY RATE AVERAGED 71 UP FROM 59 A YEAR EARLIER TOP HOTELS THIS YEAR ARE EXPECTED TO RUN 76 FULL AN AVERAGE THAT PUTS MANY ABOVE 80 ONE HOTEL'S RATES START AT 195 A NIGHT AND ANOTHER'S CHEAPEST ROOM IS 130 UP 60 IN A YEAR TO CASH IN ON THE BUSINESSTRAVELER BOOM FOR DEALS UNDER CHINA'S MARKET REFORMS THE RATES ARE IN LINE WITH THOSE IN OTHER CITIES BUT REPRESENT A FORTUNE TO THE AVERAGE CHINESE THAILAND'S GOVERNMENT BOOSTED ITS FOREIGN BORROWING LIMIT 28 TO 32 BILLION FOR THE YEAR THAT BEGAN OCT 1 TO HELP FINANCE 40 PROJECTS TO IMPROVE ENERGY TRANSPORTATION TELECOMMUNICATIONS AND THE WATER SUPPLY FINLAND INAUGURATED ITS 133 MILLION OPERA HOUSE IN HELSINKI AFTER SEVEN YEARS OF CONSTRUCTION THE BUILDING WITH GLASSWALLED FOYERS OVERLOOKING TOOLONLAHTI BAY HAS FOUR STAGES FOR THE FINNISH NATIONAL OPERA AND NATIONAL BALLET SUBSIDIZED TICKETS ARE PRICED FROM 9 TO 30 9312010077 931201 BUSINESS BRIEF ELCOR CORP STOCK PRICE DECLINES BY 18 ON WORD OF PROFIT OUTLOOK ELCOR CORP SAID EARNINGS FOR ITS FISCAL YEAR WILL BE WELL SHORT OF ANALYSTS' EXPECTATIONS AND ITS STOCK PRICE FELL 18 ON THE NEWS THE DALLAS MAKER OF ROOFING AND INDUSTRIAL PRODUCTS SAID SALES FOR THE YEAR ENDING JUNE 30 1994 ARE LIKELY TO EXCEED THE COMPANY'S YEAREARLIER 173 MILLION BUT NET INCOME IS EXPECTED TO FALL SHORT OF THE 148 MILLION OR 192 A SHARE POSTED A YEAR EARLIER BEFORE A TAX GAIN ANALYSTS PROJECTED ELCOR WOULD EARN ABOUT 210 A SHARE IN THE FISCAL YEAR AFTER A 17 INCREASE IN SHARES OUTSTANDING ELCOR ATTRIBUTED THE EXPECTED DECLINE TO THE PERFORMANCE OF ITS INDUSTRIALPRODUCTS BUSINESS AND TO HIGHER RAWMATERIAL AND TRANSPORTATION COSTS FOR ROOFING PRODUCTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ELCOR CLOSED AT 1875 A SHARE DOWN 4125 9312010076 931201 BUSINESS BRIEF APPLIED MATERIALS INC FISCAL FOURTHQUARTER NET INCREASED NEARLY THREEFOLD APPLIED MATERIALS INC SANTA CLARA CALIF REPORTED A NEARLY THREEFOLD INCREASE IN FISCAL FOURTHQUARTER NET INCOME AS SALES OF ITS MICROCHIPMAKING EQUIPMENT WERE BUOYED BY A SURGE IN CAPITAL INVESTMENT BY THE WORLD'S CHIP MAKERS APPLIED REPORTED NET INCOME OF 345 MILLION OR 42 CENTS A SHARE IN THE QUARTER ENDED OCT 31 COMPARED WITH NET OF 13 MILLION OR 17 CENTS A SHARE A YEAR EARLIER SALES GREW 55 TO 3274 MILLION FROM 2105 MILLION THE RESULTS WERE JUST ABOVE ESTIMATES BY ANALYSTS WHO FORECAST PERSHARE EARNINGS OF 34 CENTS TO 41 CENTS APPLIED'S STOCK CLOSED AT 3525 UP 25 CENTS IN NASDAQ STOCK MARKET TRADING THE RESULTS WERE REPORTED AFTER TRADING CLOSED THE COMPANY SAID IT HAD RECORD ORDERS IN THE QUARTER IN NORTH AMERICA JAPAN AND EUROPE AND STRONG ORDERS IN ITS ASIAPACIFIC REGION SEPARATELY APPLIED SAID IT RECEIVED AN ORDER VALUED AT 80 MILLION FROM SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRIES CO FOR CHIPMAKING EQUIPMENT 9312010074 931201 TEXAS JOURNAL THE HOUSING MARKET BY TARA PARKERPOPE TEXAS'S SUPPLY OF HOMES IS RUNNING LOW AND PRICES ARE HEADING HIGHER THE STATE'S HOME BUILDERS APPARENTLY CAN'T KEEP UP WITH CONSUMERS' HOUSING DEMANDS ACCORDING TO A NEW STUDY FROM TEXAS A&M UNIVERSITY'S REAL ESTATE CENTER THE STUDY SHOWS THAT THERE IS LESS THAN A SIXMONTH SUPPLY OF EXISTING HOUSES FOR SALE IN THE HIGH PLAINS CENTRAL TEXAS AND RIO GRANDE AREAS REALESTATE EXPERTS SAY A 10MONTH SUPPLY TYPICALLY PROMPTS BUILDERS TO START BUILDING AGAIN IT'S TIME FOR BUILDERS TO DIG HOLES IN THE GROUND POUND NAILS AND DO THEIR THING SAYS JAMES W CHRISTIAN DIRECTOR OF THE REALESTATE CENTER IN THE HIGH PLAINS EAST CENTRAL AND RIO GRANDE AREAS SUPPLIES HAVE DROPPED BETWEEN 238 AND 445 IN THE THIRD QUARTER COMPARED WITH THE SAME PERIOD LAST YEAR ONLY THE GULF COAST WITH A 105MONTH SUPPLY REMAINS ABOVE THE NEEDTOBUILD THRESHOLD BUT TEXAS HOME BUILDERS SAY THEY ARE BUILDING AS FAST AS THEY CAN IN THE PAST YEAR BUILDING PERMITS FOR SINGLEFAMILY HOMES HAVE JUMPED AS MUCH AS 415 IN SOME AREAS BUT BUILDERS SAY A SHORTAGE OF LABOR PARTICULARLY FRAMERS AND SUITABLE LOTS HAS LENGTHENED CONSTRUCTION TIME WE'RE TRYING TO BUILD AS MUCH AS WE PHYSICALLY CAN GET BUILT SAYS STEPHEN MCCLAIN SALES MANAGER FOR THE HOME DIVISION OF MILBURN INVESTMENTS INC IN AUSTIN WE'D LIKE TO HAVE ONE OR TWO FRAMING CREWS PER SUBDIVISION BUT RIGHT NOW WE'RE HAVING TO MOVE THEM FROM ONE TO ANOTHER ULTIMATELY THAT COULD LEAD TO DELAYS THE BOOM IN HOME SALES ISN'T LIMITED TO NEW HOMES EXISTING HOME SALES JUMPED BY AT LEAST 10 IN FOUR OF SIX TEXAS REGIONS DURING THE THIRD QUARTER EVEN THE FLAT GULF COAST ECONOMY WHICH INCLUDES HOUSTON SAW A 64 GAIN IN EXISTINGHOME SALES SO WHAT DOES THE DWINDLING SUPPLY MEAN FOR TEXAS HOME BUYERS FOR ONE THING IT MAY MAKE IT TOUGH TO GET THE HOUSE THEY WANT IN THE TIME THEY WANT IT AND IT PROBABLY MEANS HIGHER PRICES ALTHOUGH HOME PRICES IN EAST TEXAS REMAIN FLAT PRICES IN THE REST OF THE STATE HAVE JUMPED AS MUCH AS 11 SINCE LAST YEAR THE HARDEST HIT IS CENTRAL TEXAS EVEN THOUGH HOUSING ACTIVITY HAS BEEN SLOW IN THE GULF COAST PRICES THERE HAVE JUMPED 85 IN THE PAST YEAR MR CHRISTIAN SPECULATES THE HIKE MAY BE DUE TO A SHORTAGE OF THE MOST DESIRABLE HOMES IN THAT REGION 9312010073 931201 WHO'S NEWS THORN EMI PLC THORN EMI PLC LONDON KNOX MILLAR 40 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT HUMAN RESOURCES AT THE EMI MUSIC INC UNIT OF THIS RECORDEDMUSIC AND MUSICPUBLISHING CONCERN EFFECTIVE JAN 1 MR MILLAR SUCCEEDS ED PICCOLINO WHO LEFT THE COMPANY TO BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EXECUTIVE DEVELOPMENT INTERNATIONAL A HUMANRESOURCES CONSULTING FIRM BASED IN ROWAYTON CONN 9312010072 931201 WORLD MARKETS TOKYO STOCKS GAIN AS MARKET BRAKES ITS SLIDE LONDON PRICES CLIMB AS UK BUDGET IS UNVEILED A WALL STREET JOURNAL NEWS ROUNDUP IN A TUMULTUOUS SESSION TUESDAY TOKYO'S STOCK MARKET FOUND THE BRAKES TO INTERRUPT ITS RECENT DESCENT AS THE GOVERNMENT HINTED AT ACTION TO REVIVE THE AILING ECONOMY PRICES REBOUNDED ABOUT 2 BUT THE ADVANCE WAS VIEWED AS SMALL AND UNCONVINCING GIVEN MONDAY'S 39 TUMBLE AND THE PAST MONTH'S 20 PLUNGE AND LOUSY NEW ECONOMIC DATA BUT IN LONDON SHARE PRICES SOARED TO FINISH HIGHER JUST AS BRITAIN'S TREASURY CHIEF BEGAN SPELLING OUT TAX INCREASES IN THE NEW BUDGET WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10637 UP 067 REFLECTING HIGHER ASIA/PACIFIC AND EUROPEAN MARKETS AND LOWER AMERICAN MARKETS COMMUNICATIONS WITH AT&T STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12185 UP 351 OR 3 WITH OKI ELECTRIC INDUSTRY OF JAPAN POSTING AN 108 GAIN IN ITS LOCAL CURRENCY SHIPBUILDING STOCKS TRAILED AT 10636 DOWN 085 OR 08 WITH SEMBAWANG SHIPYARD OF SINGAPORE SLIDING 43 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX RECOVERED 32783 POINTS TO 1640654 AFTER THE PREVIOUS DAY'S PLUNGE OF 64766 POINTS THE INDEX'S STEEPEST DESCENT THIS YEAR ON WEDNESDAY THE NIKKEI INDEX ROSE 20342 POINTS TO CLOSE THE MORNING SESSSION AT 1660996 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 320 MILLION SHARES DOWN FROM 3725 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 691323 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SURRENDERED 7406 POINTS MONDAY IN ITS WORST SETBACK OF 1993 RECOUPED 2358 OR 18 TO 137406 STOCKS OPENED SHARPLY HIGHER ON NEWS REPORTS THAT THE GOVERNMENT WOULD PUMP UP THE ECONOMY THROUGH AN INCOMETAX CUT IN JANUARY AND A REFORM OF THE FINANCIAL SYSTEM BUT PRICES HEADED LOWER BY MIDDAY ON COMMENTS BY FINANCE MINISTER HIROHISA FUJII THAT THE GOVERNMENT SHOULDN'T CONSIDER POLICIES AIMED AT BOOSTING THE STOCK MARKET THEN SHARES STAGED A COMEBACK ON ENCOURAGING REMARKS MR FUJII SAID HE AND THE TRADE AND INDUSTRY MINISTER HIROSHI KUMAGAI AGREED TO STUDY WAYS OF BOOSTING LIQUIDITY IN THE PROPERTY MARKET TO HELP BANKS COPE WITH NONPERFORMING LOANS AND BANK OF JAPAN GOVERNOR YASUSHI MIENO SAID THE CENTRAL BANK'S MONETARY POLICY WILL HAVE MARKET RATES REFLECTING THE ECONOMY THIS WAS INTERPRETED AS LEAVING THE DOOR OPEN TO A FURTHER CREDIT EASING THE NIKKEI SWUNG BETWEEN 1600400 AND 1650515 IN FUTURESLED ACTIVITY WITH DEALERS AND ARBITRAGERS THE MAIN PARTICIPANTS AS MOST OTHER INVESTORS ANTICIPATED FURTHER WEAKNESS ECONOMIC DATA RELEASED TUESDAY ILLUSTRATED THE ECONOMY'S WOES UNEMPLOYMENT CLIMBED TO ITS HIGHEST LEVEL IN SIX YEARS AND INDUSTRIAL PRODUCTION RECORDED THE SHARPEST DECLINE IN MORE THAN FOUR DECADES THE OUTPUT REPORT WAS ISSUED AFTER THE MARKET CLOSED MEANWHILE FUNDAMENTALS HADN'T CHANGED TO LURE NEW INVESTORS OR MONEY INTO THE MARKET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 311 POINTS JUST SHY OF 1 TO 31669 NEAR THE INTRADAY HIGH OF 31687 THE FT 30STOCK INDEX ADVANCED 229 POINTS TO 24187 VOLUME WAS 5665 MILLION SHARES COMPARED WITH 6839 MILLION SHARES A DAY EARLIER TURNOVER WAS REINED IN BY NERVOUSNESS AHEAD OF THE BUDGET SPEECH BY BRITISH CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE AND MORNING GAINS ERODED IN THE AFTERNOON ON ANTICIPATORY POSITIONSQUARING AIRLINE AND AIRPORT STOCKS FELL IN THE FINAL FIVE MINUTES OF TRADING AS MR CLARKE ANNOUNCED PLANS TO RAISE TAXES ON AIR TRAVEL INVESTORS IN THE INSURANCE SECTOR WHICH CLOSED BROADLY HIGHER BARELY HAD TIME TO REACT TO MR CLARKE'S UNVEILING OF AN ADDITIONAL TAX ON INSURANCE PREMIUMS HE ALSO SAID FINANCIAL SERVICES WERE UNDERTAXED THOUGH MR CLARKE DIDN'T FINISH HIS SPEECH UNTIL AFTER THE MARKET CLOSED STRATEGISTS VIEWED HIS BUDGET AS POSITIVE FOR THE EQUITIES MARKET AND EXPECTED IT TO SEND SHARE PRICES SKYROCKETING TODAY THE BUDGET CLEARED AWAY FEARS OF HIGH TAXES THAT HAD DEPRESSED SHARE PRICES RECENTLY IN FRANKFURT STOCKS CLOSED HIGHER IN MODERATE TRADING DESPITE DIMINISHED HOPES FOR A CUT IN KEY GERMAN INTEREST RATES THIS WEEK THE DAX 30STOCK INDEX ROSE 1434 POINTS TO 205777 NEAR THE SESSION PEAK OF 206145 THE WEEKLY CALL BY THE GERMAN BUNDESBANK THE CENTRAL BANK FOR TENDERS ON REPURCHASE AGREEMENTS AT AN UNCHANGED 625 FIXED RATE ALL BUT ELIMINATED MARKET HOPES FOR A DROP IN BENCHMARK RATES TOMORROW IN PARIS STOCKS FELL IN MOSTLY TECHNICAL DEALINGS RELATED TO THE EXPIRATION OF FUTURES CONTRACTS IN AMSTERDAM SHARES ROSE ON A WAVE OF SHORT COVERING OF OVERSOLD POSITIONS WHICH HELPED BOOST EQUITIES IN SPITE OF WEAKER BOND PRICES IN MADRID SHARES TUMBLED SLAMMED BY TRADEUNION WARNINGS OF A JANUARY GENERAL STRIKE TO PROTEST SPANISH GOVERNMENT LABOR REFORMS IN STOCKHOLM PRICES RALLIED AFTER A WEAK OPENING AS A SURGE IN THE AUTO SECTOR AND STRONG PERFORMANCES IN SOME MAJOR MARKETS ABROAD SUPPORTED THE RECOVERY IN HONG KONG SHARES GAINED 12 IN RELATIVELY THIN TRADING RECOVERING PART OF THE LOSSES CAUSED BY POLITICAL JITTERS IN THE PREVIOUS SESSION AS THE IMPASSE BETWEEN CHINA AND BRITAIN OVER THE BRITISH COLONY'S PROPOSED CONSTITUTIONAL REFORMS REMAINED UNRESOLVED THE MARKET'S TECHNICAL REBOUND WAS MAINLY DRIVEN BY FUTURES ACTIVITIES AND BARGAIN HUNTING IN TAIPEI STOCKS EDGED DOWN IN BRISK DEALINGS AS INVESTORS TOOK PROFITS FOLLOWING MONDAY'S 53 SURGE SPARKED BY ENTHUSIASM ABOUT THE OUTCOME OF LAST WEEKEND'S ELECTIONS IN TAIWAN IN SEOUL EQUITIES POSTED SOLID GAINS SPURRED BY RALLIES IN BLUECHIP EXPORTORIENTED ISSUES FOLLOWING FAVORABLE DATA ON SOUTH KOREA'S CURRENTACCOUNT SURPLUS IN WELLINGTON PRICES DROPPED 1 AS THE MARKET STRUGGLED TO SHAKE OFF PERSISTENT NEGATIVE SENTIMENT STEMMING FROM RECENT CHANGES IN THE NEW ZEALAND GOVERNMENT FOLLOWING RECENT ELECTIONS 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 9312010071 931201 BUSINESS BRIEF UNITED WATER RESOURCES INC BOARDS OF BOTH COMPANIES VOTE FOR MERGER OF GWC DIRECTORS OF UNITED WATER RESOURCES INC AND OF GWC CORP WILMINGTON DEL APPROVED THE PREVIOUSLY ANNOUNCED 200 MILLION MERGER OF THE TWO COMPANIES UNITED WATER SAID THE MERGER WOULD CREATE THE SECOND LARGEST INVESTOROWNED WATER UTILITY IN THE COUNTRY SERVING MORE THAN TWO MILLION PEOPLE IN 14 STATES UNITED WATER BASED IN HARRINGTON PARK NJ IS PARENT OF THE HACKENSACK AND SPRING VALLEY WATER COMPANIES IN NEW JERSEY AND NEW YORK RESPECTIVELY GWC IS THE PARENT OF GENERAL WATERWORKS CORP LYONNAISE DES EAUXDUMEZ A FRENCH WATER PURVEYOR CURRENTLY OWNS ABOUT 82 OF GWC'S SHARES GWC WILL MERGE INTO UNITED WATER AND GENERAL WATERWORKS WILL BECOME A WHOLLY OWNED SUBSIDIARY OF UNITED WATER LYONNAISE WILL OWN ABOUT 26 OF UNITED WATER COMMON SHARES OUTSTANDING 9312010070 931201 CREDIT RATINGS MIDLANTIC CORP MOODY'S INVESTORS SERVICE INC RAISED THE SENIOR DEBT RATINGS OF MIDLANTIC CORP TO BAA3 FROM BA2 AFFECTING ABOUT 440 MILLION IN LONGTERM DEBT MOODY'S SAID IT ALSO UPGRADED THE LONGTERM RATINGS OF MIDLANTIC'S UNITS AND THE RATINGS ON THE BANK'S SHORTTERM DEPOSITS TO PRIME2 FROM PRIME3 MIDLANTIC'S RATINGS WERE PLACED UNDER REVIEW FOR POSSIBLE UPGRADE LAST MONTH MOODY'S SAID THE UPGRADES WERE DUE TO CONTINUED IMPROVEMENT IN MIDLANTIC'S EARNINGS CREDIT QUALITY CAPITAL AND LIQUIDITY WHICH HELPED IT TO PROTECT ITS VALUABLE BANKING FRANCHISE IN NEW JERSEY AND PENNSYLVANIA MIDLANTIC IS A BANK HOLDING COMPANY HEADQUARTERED IN EDISON NJ WITH CONSOLIDATED ASSETS OF 14 BILLION 9312010069 931201 BUSINESS BRIEF SMH SWISS CORP MAKER OF SWATCH WATCHES TO SPONSOR 1996 OLYMPICS SMH SWISS CORP FOR MICROELECTRONICS & WATCHMAKING INDUSTRIES LTD LOOKING TO PROMOTE ITS SWATCH OMEGA AND LONGINES BRAND WATCHES AGREED TO SPONSOR THE SUMMER OLYMPIC GAMES TO BE HELD IN ATLANTA IN 1996 THE COMPANY IN BIEL SWITZERLAND BECOMES THE SEVENTH MAJOR CORPORATE SPONSOR TO SIGN ON FOR THE 1996 GAMES TERMS WEREN'T DISCLOSED BUT OLYMPIC PLANNERS ARE TRYING TO SECURE ABOUT 10 SPONSORS AT A STATED PRICE TAG OF 40 MILLION IN RETURN FOR ITS SUPPORT SMH MAY USE OLYMPIC LOGOS IN ITS PROMOTIONS AND SWATCH WILL BE DESIGNATED AS OFFICIAL TIMEKEEPER FOR THE ATLANTA GAMES THE COMPANY ALSO SIGNED ON AS AN ATLANTA OLYMPIC LICENSEE WITH THE RIGHTS TO CREATE WATCHES CARRYING OLYMPIC SYMBOLS 9312010068 931201 BUSINESS BRIEFS KNAPE & VOGT MANUFACTURING CO HAS COMPLETED ITS ACQUISITION OF THE HIRSH CO OF SKOKIE ILL FOR AN UNDISCLOSED PRICE HIRSH MANUFACTURES STEEL SHELVES AND HOMEWORKSHOP ITEMS TURNER CORP'S TURNER CONSTRUCTION CO UNIT WAS NAMED TO MANAGE A TOTAL OF 210 MILLION IN CONSTRUCTION PROJECTS RELATED TO PRISON AND POLICE FACILITIES IN CALIFORNIA CHICAGO AND NEW YORK AIR PRODUCTS & CHEMICALS INC WILL INVEST OVER 100 MILLION TO BUILD A NEW AIRSEPARATION PLANT AT ITS INDUSTRIALGAS COMPLEX IN ROZENBURG THE NETHERLANDS THE PLANT WILL SUPPLY 1700 METRIC TONS OF OXYGEN A DAY TO SHELL NEDERLAND RAFFINADERIJ BV'S PERNIS REFINERY IN ROTTERDAM UNDER A 15YEAR CONTRACT CBT CORP COMPLETED ITS STOCKSWAP ACQUISITION OF PENNYRILE BANCSHARES INC HOPKINSVILLE KY CBT IS THE PARENT COMPANY OF CITIZENS BANK & TRUST CO AND FIDELITY CREDIT CO BOTH IN PADUCAH KY LIBERTY NATIONAL BANCORP COMPLETED ITS ACQUISITION OF FIRST FEDERAL BANK IN HOPKINSVILLE NY TERMS WEREN'T DISCLOSED BUT LIBERTY ACQUIRED THE BANK IN A TAXFREE STOCK SWAP LIBERTY HAS ENTERED INTO AN AGREEMENT TO BE ACQUIRED BY BANC ONE CORP COLUMBUS OHIO IN A MERGER TO BE COMPLETED IN MID1994 FOUNDATION HEALTH CORP IS SEEKING TO PROVIDE HEALTH MAINTENANCE ORGANIZATION SERVICES IN THE COMMUNITIES OF AUSTIN AND SAN ANTONIO TEXAS THE NEWLY FORMED SUBSIDIARY WOULD BEGIN OFFERING HMO SERVICES IN THE TEXAS COMMUNITIES IN THE SUMMER OF 1994 9312010067 931201 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL UP UPGRADE AND AWAY HE WENT POCKETING THE PREMIUM FOR A FIRSTCLASS FARE PLANE TICKETS EARNED WITH CREDITS FOR DEDUCTIBLE BUSINESS TRAVEL ARE TAXABLE IF USED FOR PERSONAL TRAVEL YET THE IRS CAN'T DECIDE HOW TO ENFORCE TAXES ON SUCH INCOME BUT NOW THE TAX COURT HAS CRACKED DOWN ON A TRADE OF CREDITS FOR CASH BY PHILIP J CHARLEY OF SEAL BEACH CALIF HE HEADED A LABORATORY THAT TESTED RACEHORSE URINE AND INVESTIGATED MACHINERY FAILURES AND THAT LET HIM MAKE PERSONAL USE OF BUSINESS CREDITS THE LAB PAID A TRAVEL AGENT AND BILLED CLIENTS FOR FIRSTCLASS FARES FOR BUSINESS TRIPS THE AGENT BOUGHT COACH SEATS CHARLEY UPGRADED THEM TO FIRST CLASS WITH FREQUENTFLIER CREDITS AND THE AGENT SHIFTED THE CASH SAVINGS TO CHARLEY'S PERSONAL TRAVEL ACCOUNT THE IRS SOUGHT TO TAX CHARLEY ON 3150 IN TRANSFERS FOR 1988 SO HE ASKED THE COURT TO RULE THEM A TAXFREE TRANSMUTATION OF CREDITS BUT SAYS SPECIAL JUDGE NAMEROFF WHETHER BY A SALE OF CREDITS OR A RIPOFF OF THE LAB CHARLEY HAD TAXABLE INCOME AND DESERVED A NEGLIGENCE PENALTY THE JUDGE SAW NO INDICATION THAT THE LAB CONTROLLED OR HAD ANY RIGHTS TO CHARLEY'S PERSONAL TRAVEL ACCOUNT BEFORE GOING PUBLIC COMPANIES CAN AVOID THE FUSS OVER EXECUTIVES' PAY STARTING JAN 1 PUBLIC COMPANIES MAY NOT DEDUCT COMPENSATION EXCEEDING 1 MILLION EACH FOR TOP EXECUTIVES UNLESS CERTAIN TERMS ARE MET TO BE DEDUCTIBLE PAY MUST BE BASED ON PERFORMANCE GOALS SET BY INDEPENDENT DIRECTORS AND APPROVED BY SHAREHOLDERS THUS COMPANIES ABOUT TO GO PUBLIC OR TO BE SPUN OFF BY OTHER PUBLIC CONCERNS SHOULD MAKE SURE IN ADVANCE THAT THEIR PAY PLANS COMPLY SAYS PEARL MEYER HEAD OF A NEW YORK COMPENSATIONCONSULTING FIRM A PLAN ESTABLISHED BY A PRIVATE COMPANY NEEDN'T BE REVIEWED BY NEW PUBLIC SHAREHOLDERS THEY WOULDN'T VOTE UNTIL THE COMPANY SOUGHT TO REVISE OR REPLACE THE PLAN PRIVATE OWNERS WHO HAVE KNOWN A YOUNG COMPANY FROM ITS FOUNDING MAY BE BETTER PLACED TO SET PERFORMANCE STANDARDS FOR IT MEYER ADDS TO MOP UP MONEYLAUNDERING SCAMS LAW ENFORCERS CALL ON A YOUNG DATA AGENCY IT'S THE TREASURY'S FINANCIAL CRIMES ENFORCEMENT NETWORK FORMED IN 1990 THE CENTER'S 200 STAFFERS COMPILE AND ANALYZE FINANCIAL DATA FROM MANY SOURCES IN FISCAL 1993'S FIRST 11 MONTHS SAYS THE GENERAL ACCOUNTING OFFICE CONGRESS'S WATCHDOG THE CENTER GOT 4100 REQUESTS FROM 154 FEDERAL STATE LOCAL AND FOREIGN AGENCIES FOR DATA FOR USE IN IDENTIFYING INVESTIGATING AND PROSECUTING MONEY LAUNDERERS ENGAGED IN CRIMINAL ACTIVITIES AND TAX EVASION MOST QUERIES TO THE CENTER ARE FOR DATA ABOUT THE SUBJECTS OF INVESTIGATIONS THE INFORMATION COMES FROM DOCUMENTS SUCH AS THE REPORTS ON CASH TRANSACTIONS INVOLVING 10000 OR MORE BUT NOW THE CENTER ALSO OFFERS STRATEGIC ANALYSES OF TRENDS AND ISSUES SUCH AS NEW LAUNDERING TECHNIQUES THE SEVERITY OF THE PROBLEM IN SPECIFIC AREAS AND THE FLOW OF CASH IN FEDERAL RESERVE DISTRICTS A NEW COMPUTER SYSTEM CORRELATES DATA ON TRANSACTIONS PEOPLE AND THEIR ACCOUNTS TO PRODUCE PERIODIC REPORTS ON LIKELY TARGETS FOR INVESTIGATION STATE TAX REVENUE IN THE THIRD QUARTER SHOWED THE BEST GAIN OF 1993 62 FROM A YEAR BEFORE SAYS THE CENTER FOR THE STUDY OF THE STATES ALBANY NY ADJUSTED FOR INFLATION AND LEGISLATED INCREASES REVENUE ROSE 31 THAT WAS THE BEST SUCH GAIN SINCE 1990 AND REFLECTED ECONOMIC GROWTH FLORIDA DEFENDS BATTERED DEFENSE CONTRACTORS STRIVING FOR BUSINESS IT OFFERS 10 MILLION A YEAR IN TAX REFUNDS TO HELP FLORIDA CONCERNS MAINLY A MCDONNELL DOUGLAS UNIT COMPETE WITH OUTOFSTATE RIVALS BUT THE PROGRAM DIES IF BENEFICIARIES DON'T CREATE AT LEAST 1000 JOBS BY APRIL 15 THE MAXIMUM PAYMENT ALLOWED TO A 401K RETIREMENT PLAN IN 1994 WILL RISE TO 9235 FROM 8994 IN 1993 CHARLES YOVINO OF COOPERS & LYBRAND CPAS ESTIMATES HE EXPECTS INFLATION ADJUSTMENTS TO RAISE THE MAXIMUM PAYOUT FROM A DEFINEDBENEFIT PENSION PLAN TO 118737 FROM 115641 NUMBER CRUNCHERS FIND A TASTY BIT IN THE REDUCED DEDUCTION FOR BUSINESS MEALS RESTAURATEURS AND THEIR CUSTOMERS ARE BELLYACHING BECAUSE THE DEDUCTION FOR BUSINESS MEALS AND ENTERTAINMENT DROPS IN 1994 TO 50 OF SPENDING FROM 80 YET FOR PEOPLE MOVING INTO THE FATTER TAX BRACKETS THAT IS LESS OF A BITE OUT OF EXPENSE ACCOUNTS THAN IT SEEMS SAYS SHELDON PHILLIPS OF PHILLIPS GOLD & CO NEW YORK CPAS SUPPOSE PAULINA A SELFEMPLOYED DECORATOR TAKES A CLIENT TO A MODEST LUNCH AND SPENDS 100 IF HER TOP TAX RATE IN BOTH 1993 AND 1994 IS 31 THE TAX SAVING FROM HER DEDUCTION FALLS TO 1550 IN 1994 FROM 2480 IN 1993 A LOSS OF 930 OR 93 OF THE 100 TAB THE LOSS BLOATS TO 108 OF THE LUNCH'S COST IF PAULINA'S TOP RATE IS 36 IN BOTH YEARS OR 1188 IF HER TOP RATE IS 396 IN BOTH BUT THE MATH DEDUCTING A BIGGER SLICE OF A SMALLER PIE HELPS IF SHE RISES TO A HIGHER TOP TAX BRACKET IN 1994 IF SHE GOES FROM 36 TO 396 HER TAX SAVING IS LEANER BY 9 IF SHE GOES FROM 31 TO 36 HER LOSS IS TRIMMED SHARPLY TO JUST 68 OF THE COST AND IF PAULINA LEAPS TO THE 396 BRACKET FROM 31 SHE LOSES ONLY 5 OR 5 IN TAX SAVINGS PHILLIPS NOTES BRIEFS WAIT TILL NEXT YEAR THAT IS WHEN SOUTH DAKOTA SAYS IT WILL START NUDGING NEIGHBORS OF THE STATE FAIRGROUNDS TO COLLECT SALES TAX IF THEY RENT OUT THEIR YARDS AND DRIVEWAYS FOR PARKING LINDY PAULL WILL HEAD THE STAFF FOR THE SENATE FINANCE COMMITTEE'S REPUBLICAN MINORITY SHE SUCCEEDS ED MIHALSKI WHO JOINS ELI LILLY & CO AS FEDERALAFFAIRS DIRECTOR 9312010066 931201 MANAGING YOUR CAREER BY JOAN E RIGDON YOU HAVE A NEW JOB AND LACK A MENTOR WORSE YOU'RE THE DEPARTMENT'S FIRST PERSON EVER HIRED FROM THE COMPETITION THE ONLY ASIANAMERICAN OR THE ONLY WOMAN YOU ARE NOT ALONE A POTENTIAL MENTOR MAY BE AS CLOSE AS THAT PERSONAL COMPUTER ON YOUR DESK MANY INDIVIDUALS NOW SEEK INFORMAL CAREER GUIDANCE FROM ONLINE BULLETIN BOARDS OR INHOUSE ELECTRONIC MAIL BY PINPOINTING PEOPLE IN PARALLEL PICKLES BUT YOU NEED TO KNOW WHERE TO LOOK FOR AN ELECTRONIC MENTOR AND TO MAKE SURE YOUR LAMENT DOESN'T ALIENATE THE BOSS EXPERTS CAUTION CONSIDER ONE COMPUTER SCIENTIST WHO GREW FRUSTRATED REPEATING HERSELF SO MALE COWORKERS WOULD HEED HER DURING MEETINGS BECAUSE SHE HAD FEW FEMALE COLLEAGUES SHE POSTED HER COMPLAINT ON SYSTERS AN ELECTRONIC MAILING LIST FOR FEMALE COMPUTER SCIENTISTS THE LIST BEGUN IN 1987 NOW HAS MORE THAN 1600 MEMBERS IN 18 COUNTRIES THE SCIENTIST QUICKLY GOT SEVERAL ANSWERS INCLUDING ONE FROM BARBARA SIMONS A SENIOR PROGRAMMER AT THE INTERNATIONAL BUSINESS MACHINES SANTA TERESA LABORATORY IN SAN JOSE CALIF MS SIMONS COMMENDED THE WOMAN'S BROKENRECORD TECHNIQUE AND THEN SUGGESTED ANOTHER METHOD REPEAT THE MALE COLLEAGUE'S LAST WORDS ADD THE WORD AND THEN INSERT YOUR OWN THOUGHT EXAMPLE I HEAR THAT YOU THINK I SHOULD GO JUMP IN THE LAKE AND I THINK THAT WE SHOULD START MANUFACTURING WIDGETS MS SIMONS WROTE BACK IN A SYSTERSWIDE MESSAGE SEVERAL WOMEN POSTED RESPONSES SAYING THEY HAD FOUND MS SIMONS'S METHOD EFFECTIVE BUT THE IBM PROGRAMMER DOESN'T RECALL HEARING BACK FROM THE ORIGINAL WOMAN THE TRICK IS TO FIND THE RIGHT BULLETIN BOARD AND LEARN THE ETIQUETTE OF THE ETHER AMERICA ONLINE COMPUSERVE AND SEVERAL BULLETINBOARD SERVICES SUCH AS THE WHOLE EARTH 'LECTRONIC LINK THE WELL OFFER FORUMS FOR DISCUSSING SPECIFIC WORKPLACE ISSUES OR FOR MEETING PEOPLE IN A PARTICULAR PROFESSION IF YOU CAN'T FIND THE EXACT TOPIC YOU WANT YOU CAN START YOUR OWN PEOPLE TEND TO BE VERY CANDID AND FRIENDLY WHEN COMMUNICATING ON ONLINE BULLETIN BOARDS DOLLING UP MESSAGES WITH HAPPY FACES AND EXCLAMATION POINTS BUT THEY'RE NOT THE ONLY ONES READING THE GUY IN THE NEXT OFFICE YOUR BOSS OR THEIR FRIENDS MAY ALSO BE ONLINE ALONG WITH POSSIBLE FUTURE COWORKERS AND BOSSES OR THEIR FRIENDS MOVE CAUTIOUSLY EXPERTS ADVISE TRY NOT TO IDENTIFY YOURSELF OR YOUR COMPANY SOME SYSTEMS LET YOU USE A PSEUDONYM EVEN WITH ANONYMITY DON'T EXPOSE ALL THE DETAILS OF YOUR SITUATION ONLINE WITH MANY SYSTEMS YOUR POSTED MESSAGE REMAINS IN THE PUBLIC DOMAIN FOR YEARS YOU HAVE TO THINK VERY VERY HARD BEFORE YOU SEND SOMEONE A MESSAGE BECAUSE IT'S GOING ALL OVER THE WORLD SAYS ANITA BORG AN EMAIL RESEARCHER FOR DIGITAL EQUIPMENT WHO IS BASED IN PALO ALTO CALIF AND RUNS SYSTERS FIGURING OUT WHOSE ADVICE TO TRUST TAKES TIME AT FIRST YOU MAY JUST WANT TO READ OTHER PEOPLE'S COMMENTS THEN CHECK DIFFERENT BULLETIN BOARDS TO SEE WHAT KINDS OF COUNSEL THEY GAVE IN OTHER SITUATIONS ON SOME SYSTEMS YOU CAN ALSO LOOK UP PARTICIPANTS' DESCRIPTIONS OF THEMSELVES IN THAT WAY YOU GET A BETTER SENSE OF WHO TENDS TO BE A RISK TAKER WHO'S TOO CONSERVATIVE MITCH RATCLIFFE A TACOMA WASH AUTHOR OF BOOKS ON MOBILE COMPUTING SAYS HE OFTEN SENDS EMAIL TO PEOPLE VIA THE WORLDWIDE INTERNET SYSTEM SEEKING HELP ON THE BOOKWRITING PROCESS AFTER LURKING LONG ENOUGH TO FIND PEOPLE WHO HAVE SUCCEEDED IN SIMILAR VENTURES BUT VIRTUAL MENTORS AREN'T AS GOOD AS REAL ONES MR RATCLIFFE WARNS THEY CAN BECOME TRUE MENTORS IF YOU FORM A MORE PERSONAL RELATIONSHIP THROUGH A CALL OR A MEETING IF YOU BOTH WORK IN THE SAME FIELD YOU MAY ALREADY ATTEND THE SAME CONVENTIONS AND SEMINARS THE ETHER CAN ALSO SERVE AS AN ELECTRONIC WATER COOLER A PLACE TO UNOBTRUSIVELY BEND A SYMPATHETIC EAR WHEN THERE AREN'T MANY IN PHYSICAL PROXIMITY THIS MAY OFFER A GREAT WAY TO BLOW OFF STEAM THAT MIGHT OTHERWISE CAUSE A CAREERDAMAGING OUTBURST IN THE OFFICE IN JANUARY LAMONT JONES A REPORTER AT THE PITTSBURGH POSTGAZETTE STARTED A COLORED NEWS NETWORK NICKNAMED CNN EXCLUSIVELY FOR HIS BLACK COLLEAGUES FOURTEEN CLERKS REPORTERS AND EDITORS USE IT MOSTLY TO TALK ABOUT THE PAPER'S COVERAGE OF RACIAL ISSUES RECENTLY THE NETWORK ALSO DISCUSSED WHETHER THE PAPER USES ENOUGH BLACK FACES IN ITS SUBSCRIPTION ADS MR JONES SAYS THE ELECTRONICMAIL NETWORK KEEPS HIM FROM TAKING EVERY ISSUE TO HIS EDITORS IF YOU DO IT TOO MUCH NO ONE LISTENS TO YOU YOU HAVE TO PICK YOUR BATTLES HE SAYS THIS IS A GOOD WAY TO VENT IT'S ESPECIALLY RISKY TO USE AN INHOUSE ELECTRONIC BULLETIN BOARD TO GRIPE ABOUT OTHER WORKERS OR THE BOSS ONE CLUMSY KEYSTROKE CAN SEND AN EXPLOSIVE MESSAGE TO THE WHOLE OFFICE RATHER THAN JUST TO YOUR BUDDY IN MARKETING MOST BOSSES AND COLLEAGUES PREFER TO HEAR GRIPES IN PERSON BEFORE SEEING THEM POSTED EVEN BOSSES SUCH AS JOHN R SUMSER EXECUTIVE DIRECTOR OF THE SAUSALITO CALIF POINT FOUNDATION WHICH RUNS THE WELL AND THE QUARTERLY WHOLE EARTH REVIEW MAGAZINE HE SAYS HE ENCOURAGES HIS EMPLOYEES TO QUESTION THE WAY HE DOES THINGS BUT HE IS STILL TAKEN ABACK WHEN THEY CHALLENGE HIM PUBLICLY BY POSTING COMMENTS ON AN INHOUSE BULLETIN BOARD WITHOUT TELLING HIM FIRST MR SUMSER SAYS HE IS STRUGGLING TO GET USED TO THE IDEA DO I THINK IT'S A GOOD THING HE ASKS NOT YET BUT I'M TRYING TO 9312010065 931201 GERMAN AND US OFFICIALS TO MEET ON LOPEZ INQUIRY BONN GERMAN PUBLIC PROSECUTORS CONFIRMED THEY WILL MEET ON FRIDAY WITH AN AGENT FROM THE US JUSTICE DEPARTMENT INVESTIGATING THE INDUSTRIAL ESPIONAGE ALLEGATIONS SURROUNDING FORMER GENERAL MOTORS CORP PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA GERMAN AND US AUTHORITIES HAVE BEEN IN CONTACT IN RECENT WEEKS TO COORDINATE THEIR INVESTIGATIONS INTO ALLEGATIONS THAT MR LOPEZ ABSCONDED WITH SENSITIVE DOCUMENTS FROM GM WHEN HE BOLTED TO VOLKSWAGEN AG IN MARCH A SPOKESMAN FOR THE DARMSTADT PROSECUTOR'S OFFICE WHICH IS CONDUCTING THE GERMAN INVESTIGATIONS WOULDN'T COMMENT ON THE MEETING AGENDA BUT SAID THAT US AUTHORITIES COULD FIND ONE THING OR ANOTHER THAT WE HAVE HERE TO BE INTERESTING IN LATE AUGUST THE PROSECUTORS SEARCHED VW HEADQUARTERS SEIZING REAMS OF MATERIALS COMPUTER DISKS AND COMPUTER HARDWARE PLATO CACHERIS A US LAWYER REPRESENTING MR LOPEZ AND WILLIAM HUNLEY REPRESENTING VW IN THE US ARE BOTH BELIEVED TO BE IN GERMANY THIS WEEK JUERGEN TASCHKE MR LOPEZ'S LAWYER IN GERMANY DECLINED TO COMMENT ON WHETHER THE US AGENT HAS CONTACTED MR LOPEZ FOR QUESTIONING GM OFFICIALS IN EUROPE SAID THEY HAVEN'T BEEN CONTACTED BY THE JUSTICE DEPARTMENT REPRESENTATIVE 9312010064 931201 BUSINESS BRIEF PETRIE STORES CORP LOSS IS POSTED FOR 3RD PERIOD FIRM DISCLOSES WRITEDOWN PETRIE STORES CORP REPORTED A FISCAL THIRDQUARTER LOSS AND SAID IT HAD WRITTEN DOWN ITS INVESTMENT IN DEB SHOPS INC RESULTING IN A 137 MILLION PRETAX LOSS THAT IT REFLECTED IN A REVISED FIRSTQUARTER REPORT PETRIE SECAUCUS NJ SAID IT WILL OFFSET THE WRITEDOWN BY AN EXPECTED COMPARABLE GAIN IN THE FOURTH QUARTER EITHER BY THE SALE OF ABOUT 500000 SHARES OF ITS STAKE IN TOYS R US INC OR BY ADOPTING CERTAIN ACCOUNTING STANDARDS FOR THE THIRD QUARTER ENDED OCT 30 PETRIE POSTED A LOSS OF 52 MILLION OR 11 CENTS A SHARE WIDER THAN THE YEAREARLIER LOSS OF 44 MILLION OR NINE CENTS A SHARE SALES ROSE TO 3488 MILLION FROM 3321 MILLION THE COMPANY DIDN'T ELABORATE ON THE THIRDQUARTER RESULTS IN ITS REVISED RESULTS FOR THE FIRST QUARTER ENDED MAY 1 PETRIE POSTED A LOSS OF 37 MILLION OR 14 CENTS A SHARE FOR THE YEAREARLIER QUARTER PETRIE HAD A PROFIT OF 69 MILLION OR 15 CENTS A SHARE THE REVISED RESULTS INCLUDE THE LOSS FOR THE WRITEDOWN OF PETRIE'S INVESTMENT IN DEB SHOPS THE LOSS WAS EQUAL TO 83 MILLION OR 18 CENTS A SHARE AFTER TAXES 9312010063 931201 BUSINESS BRIEF NEW YORK STATE ELECTRIC & GAS CORP COSTCUTTING PLAN INCLUDES 4THPERIOD CHARGE LAYOFFS NEW YORK STATE ELECTRIC & GAS CORP BINGHAMTON NY SAID IT WILL RECORD A 23 MILLION FOURTHQUARTER CHARGE FOR A COSTCUTTING PLAN THAT INCLUDES A 13 CUT IN THE COMPANY'S WORK FORCE BY MID1994 THE UTILITY SAID IT WOULD ELIMINATE 600 JOBS THROUGH EARLY RETIREMENT ATTRITION AND TERMINATION NEW YORK STATE ELECTRIC & GAS HAS ABOUT 4800 EMPLOYEES IN ADDITION THE COMPANY PLANS TO CUT CAPITAL SPENDING BY 100 MILLION OR ABOUT 33 AND REDUCE OPERATING EXPENSES BY 5 IN BOTH 1994 AND 1995 A SPOKESMAN SAID THE ANTICIPATED CHARGE WOULD REDUCE EARNINGS BY ABOUT 21 CENTS A SHARE IN THE 1992 FOURTH QUARTER NEW YORK STATE ELECTRIC & GAS HAD NET INCOME OF 342 MILLION OR 42 CENTS A SHARE ON REVENUE OF 4321 MILLION THE LATEST ROUND OF COST CUTTING THE COMPANY SAID STEMS FROM INCREASING COMPETITION A WEAK ECONOMY IN ITS UPSTATE NEW YORK SERVICE TERRITORY AND EXPENSIVE CONTRACTS WITH NONUTILITY POWER GENERATORS ALREADY THIS YEAR THE COMPANY ELIMINATED 200 JOBS THROUGH ATTRITION AND RELEASED 120 TREETRIMMING CONTRACTORS 9312010062 931201 BUSINESS BRIEF TEXAS UTILITIES CO CHIMNEY COLLAPSE AT PLANT WILL LEAD TO 300 LAYOFFS TEXAS UTILITIES CO SAID IT WILL LAY OFF 300 EMPLOYEES BECAUSE OF A CHIMNEY COLLAPSE LAST MONTH THAT IDLED ONE OF THE THREE GENERATING UNITS AT THE COMPANY'S LIGNITE PLANT IN MOUNT PLEASANT TEXAS THE LAYOFFS WILL COME AT ITS THERMO MINE NEAR SULPHUR SPRINGS ITS WINFIELD MINE AND ITS MONTICELLO PLANT IN MOUNT PLEASANT THE COMPANY SAID SOME WORKERS MAY BE TRANSFERRED TO OPENINGS ELSEWHERE WITHIN TEXAS UTILITIES THOSE WHO AREN'T WILL BE LAID OFF BETWEEN DEC 15 AND DEC 29 WITH SEVERANCE PAY THE COMPANY SAID IT'S INVESTIGATING THE NOV 14 COLLAPSE OF A 600FOOT CHIMNEY AT MONTICELLO UNIT 3 WHICH KILLED ONE CONTRACT WORKER AND INJURED THREE OTHERS TEXAS UTILITIES EXPECTS THAT THE UNIT WILL BE OUT OF OPERATION FOR A LONG TIME WHILE CLEANUP CONTINUES AND THE COMPANY DEVELOPS REBUILDING AND REPAIR PLANS TEXAS UTILITIES IS A HOLDING COMPANY WHOSE PRINCIPAL UNIT IS TU ELECTRIC 9312010061 931201 BUSINESS BRIEF INTERNATIONAL MULTIFOODS CORP FISCAL 3RDQUARTER EARNINGS ARE EXPECTED TO BE LOWER INTERNATIONAL MULTIFOODS CORP MINNEAPOLIS SAID IT EXPECTS EARNINGS FOR ITS FISCAL THIRD QUARTER ENDED YESTERDAY WILL DECLINE 3 MILLION TO 4 MILLION FROM THE YEAREARLIER 154 MILLION OR 80 CENTS A SHARE THE FOODPROCESSING AND SPECIALTY DISTRIBUTION CONCERN ATTRIBUTED THE DECLINE PRIMARILY TO WEAKNESS IN ITS CANADIAN FOODS OPERATIONS WHICH HAVE BEEN HURT BY LOWER MARGINS ON RISING WHEAT COSTS PRICING PRESSURE AND UNFAVORABLE CURRENCY COMPARISONS MULTIFOODS SAID THE RESULTS ALSO WILL REFLECT THE CONTINUED SLUGGISH ECONOMIC ENVIRONMENT IN THE US AND CANADA AND THE EFFECTS OF CURRENCY DIFFERENCES IN VENEZUELA WHICH REFLECT RISING INFLATION AND UNCERTAINTY REGARDING THE PRESIDENTIAL ELECTION ON SUNDAY 9312010060 931201 INTERNATIONAL BRIEF GLAXO HOLDINGS PLC PHARMACEUTICAL FIRM STRESSES FOCUS ON DRUG DEVELOPMENT GLAXO HOLDINGS PLC IN A PRESENTATION TO ANALYSTS SAID IT REMAINS COMMITTED TO DEVELOPING NEW MEDICINES DESPITE RESEARCH CUTBACKS BY COMPETITORS CHIEF EXECUTIVE RICHARD SYKES ALSO PLAYED DOWN PREDICTIONS BY SOME ANALYSTS THAT GLAXO'S FLAGSHIP ULCER DRUG ZANTAC FACES SEVERE TIMES MANY ANALYSTS HAVE PREDICTED TROUBLE FOR ZANTAC BECAUSE RIVAL ULCER DRUG TAGAMET MADE BY SMITHKLINE BEECHAM PLC FACES PATENT EXPIRY NEXT YEAR THAT MEANS GENERIC VERSIONS COULD FLOOD THE MARKET THE LONDONBASED PHARMACEUTICAL COMPANY SAID IT ANTICIPATES MORE REGULATORY FILINGS THE NEXT TWO TO THREE YEARS THAN BEFORE THOSE DEVELOPMENTS INCLUDE ADDITIONAL USES FOR EXISTING DRUGS THE EXTENDED APPLICATIONS WILL BE CRUCIAL TO SUSTAINING GROWTH ANALYSTS CAUTIONED PURE SCIENTIFIC RESEARCH OPERATIONS ACCOUNTED FOR ROUGHLY A QUARTER OF GLAXO'S RESEARCH OUTLAYS OF 739 MILLION 11 BILLION IN THE YEAR ENDED JUNE 30 9312010059 931201 BUSINESS BRIEF PNC BANK CORP PURCHASE OF MORTGAGE UNIT FROM SEARS IS COMPLETED PNC BANK CORP PITTSBURGH SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF SEARS ROEBUCK & CO'S MORTGAGEBANKING UNIT PNC BANK SAID THE FORMER SEARS MORTGAGE BANKING GROUP AND PNC BANK'S EXISTING MORTGAGEBANKING BUSINESS WILL OPERATE AS PNC MORTGAGE WALTER C KLEIN JR WILL SERVE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE UNIT AND SAIYID NAQVI WILL BE PRESIDENT AND CHIEF OPERATING OFFICER THE COMPANY SAID PNC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THOMAS H O'BRIEN SAID THAT BECAUSE OF THE SIZE AND IMPORTANCE OF THIS BUSINESS THE UNIT WILL REPORT DIRECTLY TO PNC BANK'S PRESIDENT JAMES E ROHR THE ACQUISITION WILL CONSTITUTE ONE OF THE LARGEST MORTGAGEBANKING OPERATIONS IN THE US WITH 117 LOCATIONS IN 33 STATES THE BANK HOLDING COMPANY SAID PNC BANK CORP HAS 523 BILLION IN ASSETS AND MORE THAN 550 BRANCH OFFICES LOCATED IN PENNSYLVANIA DELAWARE OHIO KENTUCKY AND INDIANA SEARS ROEBUCK IS BASED IN CHICAGO 9312010058 931201 BUSINESS BRIEF HICKS MUSE & CO METROPOULOS FIRM TO AID FOODCOMPANY ACQUISITIONS HICKS MUSE & CO A PRIVATE LEVERAGED BUYOUT CONCERN IN DALLAS SAID IT ESTABLISHED A RELATIONSHIP WITH C DEAN METROPOULOS & PARTNERS TO FOCUS ON FOODINDUSTRY ACQUISITIONS MR METROPOULOS 47 YEARS OLD MOST RECENTLY WAS PRESIDENT AND CHIEF EXECUTIVE OF STELLA FOODS INC NOW A UNIT OF SPECIALTY FOODS CORP HE WILL BASE HIS FIRM IN NEW YORK HICKS MUSE'S PORTFOLIO ALREADY INCLUDES MORNINGSTAR GROUP INC A SPECIALTYDAIRYPRODUCTS COMPANY THAT WAS TAKEN PUBLIC LAST YEAR THE FIRM HOPES TO MAKE ADDITIONAL FRIENDLY ACQUISITIONS IN AN INDUSTRY IT THINKS IS RIPE FOR CONSOLIDATION MR METROPOULOS SAID HE WILL FOCUS ON EXPANDING MORNINGSTAR INTO A MORE GROWTHORIENTED MODE HE ADDED THAT HE AND HICKS MUSE WILL PURSUE SEPARATE ACQUISITIONS OF FOOD COMPANIES THAT LEAD THE MARKET IN SPECIALTY CATEGORIES 9312010057 931201 INTERNATIONAL BRIEF AB VOLVO BIG SWEDISH INSURER TO VOTE AGAINST THE RENAULT MERGER SKANDIA INSURANCE CO SWEDEN'S LEADING INSURANCE GROUP DECIDED TO VOTE AGAINST THE PROPOSED MERGER BETWEEN AB VOLVO OF SWEDEN AND RENAULT SA OF FRANCE SKANDIA WHICH HOLDS 41 OF THE VOTING POWER IN THE AUTO MAKER SAID THE MERGER PROPOSAL IS NOT IN THE INTEREST OF SHAREHOLDERS NOR IN THE INTEREST OF THE COUNTRY IT SHOULD THEREFORE BE REJECTED SKANDIA'S DECISION LATE TUESDAY TO REJECT THE MERGER PROPOSAL FOLLOWS A SIMILAR DECISION ON MONDAY BY INSURANCE GROUP WASA GROUP WHICH HOLDS 03 OF THE VOTES IN VOLVO SO FAR INSTITUTIONS AND SHAREHOLDERS CONTROLLING ROUGHLY 18 OF THE VOTES IN VOLVO HAVE SAID THEY WILL REJECT THE MERGER PROPOSAL WHILE SHAREHOLDERS REPRESENTING ROUGHLY 30 OF THE VOTES APPROVE THE MERGER THE FINAL VOTE ON THE MATTER WILL TAKE PLACE NEXT TUESDAY AT AN EXTRAORDINARY MEETING OF VOLVO SHAREHOLDERS IN GOTHENBURG 9312010056 931201 BUSINESS BRIEF DESTEC ENERGY INC COMPANY ACQUIRES RESERVES OF NATURAL GAS IN MICHIGAN DESTEC ENERGY INC SAID IT ACQUIRED ABOUT 50 BILLION CUBIC FEET OF NATURALGAS RESERVES IN MICHIGAN TERMS WEREN'T DISCLOSED DESTEC SAID IT BOUGHT THE RESERVES FROM CLOSELY HELD TERRA ENERGY LTD OF TRAVERSE CITY MICH AND AN INDIVIDUAL MICHIGAN LEASEHOLDER THE RESERVES ARE IN THE ANTRIM SHALE IN THE NORTHERN PART OF MICHIGAN'S LOWER PENINSULA DESTEC A HOUSTON POWER COMPANY SAID THE RESERVES ARE STRATEGICALLY LOCATED FOR FUTURE POWERGENERATION FACILITIES DESTEC HAS PLANNED IN THE MIDWEST AND CANADA TERRA ENERGY AN OIL AND GAS CONCERN WILL OPERATE THE PROPERTIES FOR DESTEC AND RETAINS AN INTEREST IN THE FIELDS THAT HOLD THE RESERVES FOR THE THIRD QUARTER DESTEC REPORTED NET INCOME OF 214 MILLION OR 35 CENTS A SHARE ON REVENUE OF 1532 MILLION 9312010055 931201 BUSINESS BRIEF GOODY'S FAMILY CLOTHING INC SHAREHOLDER SUIT ALLEGES IMPROPER FINANCIAL REPORTS GOODY'S FAMILY CLOTHING INC SAID A SHAREHOLDER SUED THE COMPANY CLAIMING THAT GOODY'S ARTIFICIALLY INFLATED ITS FINANCIAL CONDITION IN PUBLIC FILINGS AND STATEMENTS THE LAWSUIT FILED IN US DISTRICT COURT IN KNOXVILLE TENN BY DEBORAH LANDES STEMS FROM THE COMPANY'S ACKNOWLEDGEMENT EARLIER THIS MONTH THAT ITS INTERNAL AUDITOR FOUND IRREGULARITIES INVOLVING THE PERSONAL EXPENSES OF GOODY'S CHAIRMAN AND CHIEF EXECUTIVE ROBERT M GOODFRIEND AT ISSUE IS THE EXECUTIVE'S 66 MILLION PURCHASE OF STOCK INVESTMENTS FROM THE COMPANY THE COMPLAINT STATES THE COMPANY'S IMPROPER LISTING OF THE 66 MILLION AS CASH ON HAND INFLATED GOODY'S CASH AND CASHEQUIVALENT CATEGORY THEREBY MAKING THE COMPANY'S FINANCIAL POSITION LOOK STRONGER THAN IT WAS GOODY'S SHOULD HAVE REPORTED THE 66 MILLION AS ACCOUNTS RECEIVABLE THE COMPLAINT STATES GOODY'S IN A STATEMENT SAID THE LAWSUIT IS COMPLETELY WITHOUT MERIT 9312010054 931201 MARKETING BRIEF NOTED CAREER GUIDES THE NATIONAL BUSINESS EMPLOYMENT WEEKLY A PUBLICATION OF DOW JONES & CO SIGNED AN AGREEMENT WITH PUBLISHER JOHN WILEY & SONS INC TO JOINTLY INTRODUCE A SERIES OF CAREER GUIDES IN THE FALL OF 1994 THE FIRST THREE BOOKS WILL FOCUS ON INTERVIEWING RESUME WRITING AND NETWORKING 9312010053 931201 BUSINESS BRIEF OPTICAL RADIATION CORP LAWSUIT ALLEGES OFFICIALS KNEW OF PRODUCT DEFICIENCIES A NEW YORK INVESTOR HAS SUED OPTICAL RADIATION CORP CHARGING THAT THE AZUSA CALIF MAKER OF ELECTROOPTICAL PRODUCTS FAILED TO DISCLOSE PRODUCT DEFICIENCIES BEFORE LEGAL ACTION BY THE FOOD AND DRUG ADMINISTRATION IN A LAWSUIT FILED IN FEDERAL COURT IN LOS ANGELES WILLIAM STEINER ALLEGES THAT OPTICAL RADIATION OFFICIALS KNEW ITS ONEPIECE INTRAOCULAR LENSES DIDN'T COMPLY WITH MANUFACTURINGPRACTICES RULES BEFORE THE FDA IMPOUNDED THE COMPANY'S ENTIRE INVENTORY OF THE PRODUCT LAST WEEK THE SUIT SEEKS CLASSACTION STATUS RICHARD D WOOD CHAIRMAN AND CHIEF EXECUTIVE OF OPTICAL RADIATION SAID THE COMPANY DIDN'T KNOW ANYTHING ABOUT THE SEIZURE BEFORE IT HAPPENED AND INFORMATION HADN'T BEEN WITHHELD HE DECLINED TO COMMENT FURTHER 9312010052 931201 TECHNOLOGY BRIEF NEOPROBE CORP RIGHTS ARE GRANTED TO USE CANCERDETECTING ANTIBODY NEOPROBE CORP SAID IT HAS BEEN GRANTED EXCLUSIVE GLOBAL RIGHTS TO USE MONOCLONAL ANTIBODY CC49 WITH ITS PATENTED TECHNOLOGY FOR DETECTING SOLID TUMORS DURING SURGERY TERMS WEREN'T DISCLOSED MONOCLONAL ANTIBODIES ARE CLONES OF THE BODY'S NATURAL DEFENDER ANTIBODIES AGAINST FOREIGN SUBSTANCES THE CC49 ANTIBODY DEVELOPED BY NATIONAL INSTITUTES OF HEALTH WAS ENGINEERED TO TARGET AN ANTIGEN PRODUCED BY COLORECTOL CANCER BREAST CANCER AND OVARIAN CANCER NEOPROBE'S TUMOR DETECTION TECHNOLOGY INVOLVES ATTACHING A RADIOACTIVE ISOTOPE TO A MONOCLONAL ANTIBODY SUCH AS CC49 DURING SURGERY THE DOCTOR TRACKS THE ISOTOPE AS THE CC49 ATTACHES TO THE ANTIGEN WHICH IS CONCENTRATED AT THE TUMOR SITE NEOPROBE IS CONDUCTING TWO PHASE III TRIALS USING CC49 TO DETECT COLORECTOL CANCER ONCE THE TRIALS ARE COMPLETED EXPECTED BY THE END OF 1994 THE COLUMBUS OHIO BIOTECHNOLOGY COMPANY CAN APPLY TO THE FDA FOR A LICENSE TO MARKET THE TECHNOLOGY 9312010051 931201 INTERNATIONAL BRIEF BHFBANK GROUP OPERATING PROFIT ROSE BY 24 FOR FIRST 10 MONTHS BERLINER HANDELS & FRANKFURTER BANK REPORTED THAT GROUP OPERATING PROFIT ROSE 24 FOR THE FIRST 10 MONTHS OF THE YEAR SLIGHTLY LESS THAN PARTIAL OPERATING PROFIT FULL OPERATING PROFIT WAS 267 MILLION MARKS 15622 MILLION COMPARED WITH 216 MILLION MARKS FOR THE YEAREARLIER PERIOD PARTIAL OPERATING PROFIT WAS 306 MILLION MARKS FOR THE FIRST 10 MONTHS COMPARED WITH 238 MILLION MARKS FULL OPERATING PROFIT INCLUDES PARTIAL OPERATING PROFIT AS WELL AS INCOME FROM OWNACCOUNT TRADING RISK PROVISIONING AND VARIOUS EXPENSES AND REVENUE FRANKFURTBASED BHFBANK SAID IT EXPECTS A SATISFACTORY RESULT FOR THE FULL YEAR DESPITE DIFFICULT ECONOMIC CONDITIONS BHFBANK SAID IT INCREASED RISK PROVISIONS FOR ITS LOAN PORTFOLIO BY 36 FROM A YEAR AGO TO 132 MILLION MARKS SEPARATELY BHFBANK SAID IT MAY RAISE ITS DIVIDEND WHICH WAS 13 MARKS IN 1992 9312010050 931201 BUSINESS BRIEF MAXUS ENERGY CORP COMPANY TO TRANSFER STAKE IN OIL PROPERTY TO BP UNIT MAXUS ENERGY CORP SAID IT SIGNED A LETTER OF INTENT TO TRANSFER ITS 5333 STAKE IN A COLOMBIAN OIL PROPERTY TO A SUBSIDIARY OF BRITISH PETROLEUM CO IN EXCHANGE FOR THE STAKE IN THE RECETOR BLOCK DALLASBASED MAXUS SAID IT WILL RECEIVE A 10 MILLION PAYMENT FROM BP EXPLORATION CO COLOMBIA AND A 45 ROYALTY FROM TOTAL PRODUCTION THAT ROYALTY CLAIM COULD BE REDUCED TO 225 IF COLOMBIA'S NATIONAL OIL COMPANY DECIDES TO JOIN THE PROJECT MAXUS SAID THE TRANSACTION IS EXPECTED TO BE COMPLETED BY YEAR'S END MAXUS AN OIL AND GAS CONCERN SAID IT STILL OWNS A MAJORITY STAKE AND OPERATES THE 503000ACRE TIERRANEGRA ASSOCIATION CONTRACT ADJACENT TO THE RECETOR BLOCK AND THE 412000ACRE CHIMICHAGUA BLOCK IN NORTHERN COLOMBIA 9312010049 931201 BUSINESS BRIEF TRIARC COS ARBY'S UNIT SIGNS ACCORD TO EXPAND IN EAST EUROPE TRIARC COS SAID ITS ARBY'S INC RESTAURANT UNIT SIGNED AN AGREEMENT WITH A FRANCHISEE TO EXPAND THE ROAST BEEF CHAIN INTO EASTERN EUROPE BASED IN WEST PALM BEACH FLA TRIARC FORMERLY DWG CORP IS A HOLDING COMPANY THAT ALSO OWNS ROYAL CROWN COLA CO GRANITEVILLE CO AND NATIONAL PROPANE CORP ARBY'S IS BASED IN MIAMI INTERNATIONAL FRANCHISE GROUP LTD WASHINGTON WILL OPEN 14 ARBY'S RESTAURANTS IN THE REGION DURING THE NEXT FIVE YEARS BEGINNING WITH A STORE IN WARSAW POLAND BY THE WINTER OF 1994 IFG IS EXPECTED TO SPEND 25 MILLION DURING THE NEXT TWO YEARS EXPANDING ARBY'S INTO POLAND THE CZECH REPUBLIC SLOVAKIA AND THE BALTIC STATES 9312010048 931201 BUSINESS BRIEF BOMBAY CO SALES ROSE 52 IN NOVEMBER SAMESTORE SALES GREW 24 BOMBAY CO FORT WORTH TEXAS SAID SALES FOR THE FOUR WEEKS ENDED NOV 28 ROSE 52 TO 268 MILLION FROM 177 MILLION FOR THE FOUR WEEKS ENDED NOV 22 1992 THE FURNITURE AND HOMEFURNISHINGS RETAILER SAID SAMESTORE SALES OR SALES IN STORES OPEN A YEAR OR MORE INCREASED 24 FOR THAT PERIOD FOR THE 21WEEK PERIOD ENDED NOV 28 THE COMPANY SAID SAMESTORE SALES INCREASED 22 WHILE TOTAL SALES INCREASED 45 TO 1071 MILLION FROM 737 MILLION BOMBAY SAID THE SAMESTORE SALES INCLUDE 48 STORES CONVERTED TO A LARGERSTORE FORMAT DURING THE PAST YEAR EXCLUDING THE LARGERFORMAT STORES THE COMPANY SAID SAMESTORE SALES INCREASED 13 FOR NOVEMBER AND 14 FOR THE 21 WEEKS 9312010047 931201 BUSINESS BRIEF SLOAN'S SUPERMARKETS INC COLORADO DIAPERMARKETER PURCHASES HOLDING OF 94 SLOAN'S SUPERMARKETS INC SAID RMED INTERNATIONAL INC A DELTA COLO MARKETER OF BABY DIAPERS ACQUIRED A 94 POSITION IN THE NEW YORK SUPERMARKET OPERATOR FOR INVESTMENT PURPOSES RMED WHICH SELLS DIAPERS UNDER THE BRAND NAME TUSHIES ACQUIRED 225100 SHARES OF SLOAN'S COMMON STOCK IN OCTOBER A SEPARATE GROUP CONSISTING OF REGAN PARTNERS LP BASIS P REGAN ATHENA PARTNERS LP LENORE ROBINS AND LEE R ROBINS ACQUIRED A 51 STAKE IN THE SUPERMARKET OPERATOR ALSO FOR INVESTMENT PURPOSES SLOAN'S HAS 2398000 SHARES OUTSTANDING SLOAN'S CHIEF FINANCIAL OFFICER MARK S KASSNER SAID THE COMPANY WELCOMES THE INVESTORS 9312010046 931201 WHAT'S NEWS WORLDWIDE VIOLENCE ERUPTED IN THE GAZA STRIP THE WORST SINCE THE PEACE ACCORD ONE PALESTINIAN WAS KILLED AND 65 WOUNDED IN WIDESPREAD CLASHES WITH ISRAELI TROOPS A GENERAL STRIKE WAS CALLED BY THE PLO AFTER ISRAELI TROOPS ON SUNDAY KILLED A MEMBER OF THE FATAH HAWKS THE MILITARY WING OF ARAFAT'S PLO FACTION AND ON MONDAY CAPTURED THE GROUP'S COMMANDER AND TWO AIDES ISRAEL'S HOUSING MINISTER SAID THE ARMY HAS BEEN PURSUING GUERRILLAS RESPONSIBLE FOR PAST ATTACKS ON ISRAELIS EVEN IF THEY ARE ALLIED WITH ARAFAT WHO SIGNED THE PEACE ACCORD FOR THE PALESTINIANS IN SEPTEMBER THE PLO ADJOURNED PEACE TALKS WITH ISRAEL FOR AT LEAST FIVE DAYS FURTHER IMPERILING A DEC 13 DEADLINE FOR ISRAELI WITHDRAWAL FROM GAZA AND JERICHO CLINTON SIGNED THE BRADY BILL WHICH REQUIRES A FIVEDAY WAITING PERIOD FOR HANDGUN SALES NATIONWIDE SO THAT BACKGROUND CHECKS ON BUYERS CAN BE CONDUCTED JAMES BRADY THE PRESS AIDE DISABLED IN A 1981 ASSASSINATION ATTEMPT ON THENPRESIDENT REAGAN SAID THE LAW WHICH HE CHAMPIONED MARKED THE END OF UNCHECKED MADNESS AN AMTRAK TRAIN DERAILED AFTER IT HIT A TRUCK IN FLORIDA INJURING MORE THAN 60 PEOPLE THE TRUCK WAS CARRYING A BIG ELECTRICAL GENERATOR WHEN IT GOT STUCK AT A CROSSING AND POLICE ESCORTS WEREN'T ABLE TO FLAG DOWN THE TRAIN MEANWHILE THOMAS DOWNS NEW JERSEY'S TRANSPORTATION CHIEF WAS NAMED HEAD OF AMTRAK GUNMEN IN NORTHERN IRELAND KILLED A CATHOLIC MAN INCREASING FEAR OF A PROTESTANT TERRORIST CAMPAIGN TO PROTEST BRITISH GOVERNMENT TALKS WITH THE IRA IN LONDON PRIME MINISTER MAJOR SAID HIS GOVERNMENT WILL CONTINUE ITS NEWLY DISCLOSED CONTACTS WITH THE IRA MAJOR IS TO MEET SOON WITH IRELAND'S PREMIER CLINTON'S RTC NOMINEE WITHDREW SAYING HE WAS DENIED THE CHANCE TO ADDRESS SERIOUS WASTE AND MISMANAGEMENT AS HEAD OF THE THRIFTRESCUE AGENCY STANLEY TATE A REPUBLICAN REALESTATE DEVELOPER FROM FLORIDA ALSO CRITICIZED SEN RIEGLE HEAD OF THE BANKING PANEL FOR REFUSING TO ACT ON HIS NOMINATION BOSNIAN PEACE TALKS HIT AN IMPASSE AS THE MUSLIMLED GOVERNMENT ACCUSED MEDIATORS OF SIDING WITH THE SERBS AND WARNED THAT THE NEGOTIATIONS COULD COLLAPSE MEANWHILE THE US SAID IT WILL PROVIDE AN ADDITIONAL 150 MILLION IN AID TO BOSNIAN CIVILIANS THIS WINTER THE PENTAGON ALSO SAID IT WILL DOUBLE THE NUMBER OF RELIEF FLIGHTS TO BOSNIA A PARLIAMENTARY CANDIDATE ACCUSED YELTSIN'S GOVERNMENT OF AUTHORITARIAN TACTICS FOR THREATENING TO DENY TIME ON STATE MEDIA TO PARTIES THAT CRITICIZE THE DRAFT CONSTITUTION AND PRESSING TO BAR PARTIES INCLUDING THE COMMUNISTS FROM THE DEC 12 ELECTIONS THE CRITICISM CAME FROM GRIGORY YAVLINSKY A POPULAR GORBACHEVERA ECONOMIC REFORMER A FORMER KGB CHIEF TESTIFIED RUSSIA WOULD HAVE BEEN BETTER OFF IF THE 1991 COUP ATTEMPT HE IS ACCUSED OF HELPING TO LEAD HAD SUCCEEDED AND CLAIMED GORBACHEV BACKED THE PLAN KRYUCHKOV IS THE FIRST OF THE NINE DEFENDANTS TO TESTIFY IN THE COUP LEADERS' TRIAL WHICH HAS BEEN DELAYED SINCE APRIL CLINTON MET WITH SEVEN CENTRAL AMERICAN LEADERS PROMISING TO WORK TO EXPAND US ECONOMIC TIES TO THE AREA CLINTON ALSO SAID HE WAS RELEASING 40 MILLION IN ASSISTANCE TO NICARAGUA CITING PROGRESS TOWARD POLITICAL RECONCILIATION THERE AFTER ATTENDING THE MEETING VICE PRESIDENT GORE TRAVELED TO MEXICO FOR TALKS ON IMPLEMENTING NAFTA MICHIGAN RESEARCHERS SUCCEEDED IN INJECTING FOREIGN GENES DIRECTLY INTO TUMORS OF FIVE SKINCANCER PATIENTS THE PROCEDURE REPORTED IN THE CURRENT PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES REPRESENTS A SIGNIFICANT ADVANCE OVER CURRENT TECHNIQUES OF USING DEACTIVATED VIRUSES TO DELIVER GENETIC MATERIAL ETHIOPIA'S PRESIDENT URGED SOMALI CLAN LEADERS TO ATTEND PEACE TALKS TOMORROW IN ADDIS ABABA FOLLOWING THE END OF A UN AID CONFERENCE THE EFFORT IS AIMED AT PERSUADING CLAN LEADER AIDID TO ATTEND BY SEPARATING THE TALKS FROM UN AUSPICES TWELVE OTHER CLAN LEADERS HOWEVER ASKED UN PEACEKEEPERS TO EXTEND THEIR STAY IN SOMALIA HAITI'S PREMIER RESIGNED EFFECTIVE DEC 15 AN ARISTIDE AIDE SAID MALVAL WAS TO HELP THE EXILED PRESIDENT'S RETURN TO POWER IN OCTOBER BUT THE USLED EFFORT FAILED WHEN HAITI'S MILITARY REFUSED TO YIELD POWER AND BLOCKED THE LANDING OF PEACEKEEPERS MALVAL IS DUE IN WASHINGTON FOR TALKS TODAY 9312010045 931201 WHAT'S NEWS BUSINESS AND FINANCE AT&T IS PLANNING A MAJOR WORKFORCE CUTBACK IN ITS CONSUMER LONGDISTANCE UNIT AS IT STRUGGLES TO FIGHT STIFF COMPETITION FROM MCI COMMUNICATIONS THE REDUCTION COULD RUN AS HIGH AS 15 OR 4500 JOBS IN THE 32000MEMBER UNIT SAID INDIVIDUALS CLOSE TO THE TELECOMMUNICATIONS FIRM BOEING IS EXPECTED TO ANNOUNCE TODAY MORE PRODUCTION CUTS AND FURTHER JOB LOSSES REFLECTING A CONTINUED DEARTH OF MAJOR AIRPLANE ORDERS THE PRODUCTION CUTS WILL INCREASE THE NUMBER OF JOBS LOST BY AS MANY AS 3000 OR 35 OF BOEING'S WORK FORCE ADDING TO 27000 CUTS ALREADY UNDER WAY THE US COULD REACH A COMPROMISE WITH FRANCE OVER FARMSUBSIDY CUTS A HEATED ISSUE THAT HAS BLOCKED COMPLETION OF WORLD TRADE TALKS AGRICULTURE SECRETARY MIKE ESPY INDICATED THE CONSUMER CONFIDENCE INDEX JUMPED NEARLY 11 POINTS IN NOVEMBER TO ITS HIGHEST READING SINCE JANUARY BOND PRICES DROPPED ON SIGNS OF A STRENGTHENING ECONOMY THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 7/8 POINT ITS YIELD ROSE TO 630 THE DOW INDUSTRIALS ROSE 615 POINTS TO 368395 THE INFLATION RATE IS LIKELY TO FALL FURTHER BECAUSE OF THE SLIDE IN OIL PRICES THE RESULT COULD BE AN ECONOMY THAT GAINS MOMENTUM AT THE START OF THE YEAR FROM CONSUMER SPENDING LOWER JETFUEL PRICES ARE PRODUCING A WINDFALL FOR THE AIRLINES BUT NOT ENOUGH TO OFFSET FOURTHQUARTER LOSSES OIL PRICES ROSE SLIGHTLY YESTERDAY RUSSIA IS CONSIDERING SLASHING CRUDEOIL EXPORTS BY UP TO 75 THIS MONTH BECAUSE FRIGID WEATHER HAS INCREASED DEMAND WITHIN FORMER SOVIET REPUBLICS THE CUT IF INSTITUTED COULD SLOW THE PRICE DECLINE THAT FOLLOWED OPEC'S DECISION NOT TO CUT OUTPUT NORTHWEST AIR PLANS TO GO PUBLIC SOON THE SIZE OF THE OFFER BY THE WINGS HOLDINGS UNIT THE FOURTHLARGEST US AIRLINE HASN'T BEEN DETERMINED THE SEC IS EXPECTED TO FILE AN ADMINISTRATIVE COMPLAINT ALLEGING THAT GOLDMAN SACHS VIOLATED RECORDKEEPING LAWS IN CONNECTION WITH TREASURY SECURITIES TAX TRADES IN THE 1980S PEOPLE FAMILIAR WITH THE MATTER SAID RETAIL STOCKS WERE BATTERED AMID BIG INVESTORS' CONCERN THAT TOMORROW'S NOVEMBER SALES REPORTS WILL SHOW A WEAKERTHANEXPECTED SELLING PACE CORPORATIONS AREN'T LIABLE TO SHAREHOLDERS FOR OVERLY OPTIMISTIC STATEMENTS MADE TO FINANCIAL ANALYSTS AND JOURNALISTS THAT ARE CITED WITHOUT ATTRIBUTION AN APPEALS COURT RULED THE JAPANESE GOVERNMENT RAISED THE PROSPECT OF EMERGENCY MEASURES TO COMBAT AN ECONOMIC DOWNTURN REVERSING SLUMPING STOCK PRICES THE NIKKEI ROSE 32783 POINTS TO 1640654 BEAR STEARNS PLANS TO HIRE FORMER ROTHSCHILD INC CEO ROBERT PIRIE TO A SENIOR INVESTMENTBANKING POST DELL COMPUTER POSTED BETTERTHANEXPECTED RESULTS FOR ITS THIRD QUARTER ALTHOUGH ITS NET WAS 58 LOWER THAN A YEAR AGO ITS STOCK JUMPED 12 THE BRITISH GOVERNMENT UNVEILED A 199495 BUDGET COMBINING MODERATE TAX INCREASES WITH PROMISES OF FARREACHING PUBLICSPENDING CUTS DESIGNED TO MAINTAIN CONSUMER CONFIDENCE AND FUEL AN ECONOMIC RECOVERY CANADA'S GDP ROSE AT AN ANNUAL RATE OF 24 IN THE THIRD QUARTER LED BY STRONG EXPORTS TO THE US BUSINESS SPENDING ON MACHINERY AND EQUIPMENT ALSO CONTRIBUTED TO THE GROWTH BONDS LEHMAN BROTHERS TREASURY INDEX 548748 OFF 4537 COMMODITIES OIL 1543 A BARREL UP 12 CENTS DOW JONES FUTURES INDEX 13541 OFF 160 SPOT INDEX 12214 OFF 103 DOLLAR 10908 YEN OFF 012 17150 MARKS UP 00070 9312010044 931201 HEARD ON THE STREET BANC ONE DRAWS INTEREST OF INVESTORS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN BANC ONE STARTED LOADING UP ON BILLIONS OF DOLLARS' WORTH OF COMPLEX DERIVATIVES THE STOCK MARKET STARTED THINKING THE OHIO BANKING COMPANY WAS TOO SMART FOR ITS OWN GOOD THE SHARES HAVE SLID 12 IN THREE MONTHS ALMOST TWICE THE LOSS OF REGIONAL BANKS AS A GROUP AT YESTERDAY'S 37 3/8 UNCHANGED SOME INVESTORS SEE THE STOCK AS A MIGHTY TEMPTING BUY PAUL LLOYD SENIOR INVESTMENT OFFICER AT PHILADELPHIABASED CORESTATES INVESTMENT ADVISERS WHICH IS INCREASING ITS BANC ONE HOLDINGS SAYS THE STOCK IS CHEAP ONE REASON I LIKE THE STOCK IS I THINK THE CLOUD OVER THE DERIVATIVES ISSUE WILL DIMINISH HE SAYS FOR YEARS BANC ONE ENJOYED A REPUTATION FOR SAVVY DEALING THAT WAS UNUSUAL FOR ITS SMALLTOWN ROOTS THE COMPANY WAS RICHLY REWARDED FOR ITS SOPHISTICATION WITH A STOCK THAT TRADED AT A BIG PREMIUM TO THE INDUSTRY AVERAGE WHAT GOT BANC ONE INTO HOT WATER WITH INVESTORS AND SOME ANALYSTS WAS ITS SOARING USE OF CERTAIN DERIVATIVE INSTRUMENTS KNOWN AS INTERESTRATE SWAPS IN SUCH SWAPS BANC ONE TYPICALLY AGREES TO PAY A FLOATING RATE OF INTEREST IN RETURN FOR RECEIVING A FIXED RATE FROM A BIG SWAP DEALER SUCH AS LEHMAN BROTHERS INC OR UBS SECURITIES IN SOME OF ITS SWAPS BANC ONE RECEIVES AN UNUSUALLY HIGH FIXED RATE OF INTEREST BUT SUCH SWAPS ALSO INVOLVE SOME UNUSUAL RISKS THEY'RE PROGRAMMED TO EVAPORATE IF INTEREST RATES DECLINE BELOW A CERTAIN LEVEL IN DEFENDING ITS FONDNESS FOR DERIVATIVES BANC ONE EMPHASIZES THAT IT DOESN'T DEAL OR ACTIVELY TRADE THEM BUT INSTEAD USES DERIVATIVES AS THE CHEAPEST AND BEST MEANS AVAILABLE TO MANAGE ITS INTERESTRATE RISK WE WOULD BE UP A CREEK WITHOUT A PADDLE IF WE DIDN'T USE SWAPS TO HEDGE SAYS STEVEN BLUHM VICE PRESIDENT IN FUNDS MANAGEMENT AT BANC ONE CRITICS LOOK ASKANCE AT SUCH NEWFANGLED STRATEGIES THEY WORRY THAT THE BANK'S BULGING SWAPS PORTFOLIO IS ACTUALLY A HAZARD THAT BOLSTERS EARNINGS INFLATES CAPITAL RATIOS AND BUTTRESSES DECLINING BUSINESS ELSEWHERE IN THE BANK WHAT'S MORE THEY WORRY THAT BANC ONE'S DEPENDENCE ON SWAPS HAS GROWN OUT OF CONTROL IN THE FIRST NINE MONTHS OF THIS YEAR THE TOTAL NOTIONAL PRINCIPAL THE UNDERLYING VALUE OF ASSETS ON WHICH THE SWAP PAYMENTS ARE BASED SKYROCKETED TO ALMOST 30 BILLION FROM 129 BILLION AT THE END OF 1992 AS A PERCENTAGE OF TOTAL ASSETS SWAPS GREW TO 378 FROM 21 IN THE SAME PERIOD NEVER MIND THE BIG NUMBERS THE BANK SAYS ANY POTENTIAL LOSS TO THE BANK WOULD BE A TINY FRACTION OF THAT AMOUNT DOES THAT LOOK LIKE HEDGE ACTIVITY SCOFFS GEORGE SALEM BANKING ANALYST AT PRUDENTIAL SECURITIES THEY USE THIS STUFF TO KEEP THE GAME GOING A MAJOR PROBLEM WITH SWAPS IS THAT THEY MAKE INSTITUTIONS SUCH AS BANC ONE LOOK MORE LIKE MYSTERIOUS BLACK BOXES THAN THE SIMPLE SQUEAKYCLEAN BANKS ANALYSTS ARE USED TO BECAUSE SWAPS AND OTHER DERIVATIVES ARE OFF BALANCE SHEET INSTRUMENTS MEANING THEY AREN'T REPORTED TO SHAREHOLDERS EXCEPT IN BRIEF HARDTOLOCATE FOOTNOTES IN FINANCIAL STATEMENTS IT'S HARD FOR ANALYSTS AND INVESTORS TO TELL EXACTLY WHAT'S GOING ON NEVER HAVE I SEEN A SUBJECT ABOUT WHICH SO MANY PEOPLE KNOW SO LITTLE SAYS MR SALEM SENSING THAT BANC ONE'S SWAP DEPENDENCE IS A PROBLEM MR SALEM DOWNGRADED THE STOCK LAST WEEK TO HOLD FROM BUY HE CONSIDERS THE SWAPS A MAJOR DISTRACTION FROM THE FUNDAMENTAL ACTIVITIES OF WHAT CONTINUES TO BE ONE OF THE BESTMANAGED GROWTH COMPANIES IN BANKING BUT BANC ONE SAYS MR SALEM AND OTHERS LIKE HIM ARE MISSING THE POINT TO MEET SUCH CRITICS HEADON THE BANK'S TOP BRASS INCLUDING ITS CHAIRMAN TREASURER CHIEF INVESTMENT OFFICER AND COMPTROLLER WILL TRAVEL TO NEW YORK TODAY AND BOSTON TOMORROW TO TRY TO CONVINCE ANALYSTS REGULATORS AND CREDITRATING SERVICES THAT BANC ONE IS GETTING A BUM RAP THE STAKES ARE HIGH IN TODAY'S MARKET WHERE BANKS' SHARES ARE USED AS CURRENCY TO ACQUIRE OTHER BANKS WITH COVETED FRANCHISES BANC ONE'S GROWTH STRATEGY DEPENDS HEAVILY ON ACQUISITIONS AND A RISING STOCK PRICE IT IS ONE OF THE MOST PROLIFIC BUYERS IN THE INDUSTRY BUT BECAUSE JUST ABOUT ALL ITS DEALS ARE STOCK SWAPS A LOW STOCK PRICE DEPRESSES ITS BUYING POWER AND COULD HALT ITS STRATEGY FOR INSTANCE SOME ANALYSTS THINK ITS RECENTLY PLANNED ACQUISITION OF LIBERTY NATIONAL BANCORP OF LOUISVILLE KY COULD BE JEOPARDIZED IF BANC ONE'S STOCK PRICE DOESN'T REBOUND FROM CURRENT LEVELS WITHOUT A HIGHER STOCK PRICE THEY CAN'T BE IN THERE WINNING MERGERS SAYS MR SALEM OTHER ANALYSTS ARGUE HOWEVER THAT THE SWAPS DON'T EXPOSE THE BANK TO UNDUE RISKS AND DO ADD VALUE THAT INVESTORS AREN'T RECOGNIZING TO NOT DO THIS WOULD SIMPLY BE POOR MANAGEMENT SAYS ROBERT ALBERTSON BANKING ANALYST AT GOLDMAN SACHS & CO IN FACT BANC ONE COULD WELL BE MORE SUSCEPTIBLE TO FLUCTUATING INTEREST RATES IF IT DIDN'T USE THE SWAPS MARKET THAT'S BECAUSE THE BANK MAKES A LOT OF CONSUMER LOANS THAT PAY INTEREST AT VARIABLE RATES EVEN THOUGH THE RATES IT PAYS FOR DEPOSITS ARE FIXED THAT MISMATCH BENEFITS THE BANK WHEN RATES RISE BUT HURTS IT WHEN RATES FALL ADDING FIXEDRATE ASSETS IN THIS CASE OFFBALANCESHEET SWAPS OFFSETS THIS NATURAL MISMATCH MEANWHILE BECAUSE REGULATORS REQUIRE LESS CAPITAL TO BE SET ASIDE AGAINST SWAPS THAN AGAINST OUTRIGHT SECURITIES HOLDINGS WITH THE SAME UNDERLYING VALUE THEY GIVE A BIGGER BANG FOR EACH BUCK OF CAPITAL DERIVATIVES OFFER A COSTEFFECTIVE WAY FOR MANAGEMENT TO IMPLEMENT ITS STRATEGIES SAYS DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE & WOODS INDEED TO DATE SWAPS HAVE ADDED NOT DETRACTED FROM BANC ONE'S PROFITABILITY THE EXTRA INTEREST INCOME GLEANED FROM THE SWAPS FATTENED THE BANK'S SOCALLED NET INTEREST MARGIN THE AMOUNT BY WHICH INTEREST EARNED ON ASSETS EXCEEDS THE INTEREST PAID OUT TO 622 IN THE THIRD QUARTER COMPARED WITH AN ESTIMATED 555 WITHOUT USE OF SWAPS ACCORDING TO THE BANK BANC ONE DOESN'T HAVE TO MARK TO MARKET THE VALUE OF ITS SWAP PORTFOLIO BECAUSE IT USES THOSE INSTRUMENTS ONLY TO HEDGE NOT SPECULATE ON INTERESTRATE SWINGS BUT IF IT DID REPORT ITS SWAPS AT THEIR CURRENT MARKET VALUE IT WOULD BOOK AT LEAST 250 MILLION IN PROFIT THE BANK SAYS WHAT A SHAME EVERYONE WANTS TO JUMP ON THEM FOR IT SAID CORESTATES'S MR LLOYD OF THE BANK'S SWAPS BOOKS MEANWHILE BANC ONE UNLIKE MOST BANKS IS EXPERIENCING GOOD OLDFASHIONED LOAN GROWTH THE INDUSTRY'S ELIXIR LOANS GREW BY 106 IN THE THIRDQUARTER HELPING OFFSET A NARROWER NET INTEREST MARGIN AND LET'S NOT FORGET THAT THIS IS A MANAGEMENT THAT HAS A GOOD TRACK RECORD WITH RISKS THE WEIGHT OF HISTORICAL AND EMPIRICAL EVIDENCE SUGGESTS THAT THIS IS A MANAGEMENT ONE CAN RELY ON SAYS CAROLE BERGER BANKING ANALYST AT CJ LAWRENCE IN A RECENT REPORT SHE'S LOOKING FOR THE STOCK TO SURGE TO 59 BY THE END OF 1994 NINE MONTHS ENDED SEPT 30 1993 THIRD QUARTER SEPT 30 1993 NOTE PERSHARE FIGURES REFLECT 5FOR4 STOCK SPLIT PAID IN AUGUST 1993 9312010043 931201 BUSINESS BRIEF MAXTOR CORP HOLDERS RATIFY 2 MEASURES TOWARD HYUNDAI INVESTMENT MAXTOR CORP SAID ITS SHAREHOLDERS RATIFIED TWO OF THREE MEASURES NEEDED TO APPROVE A PROPOSED 150 MILLION INVESTMENT BY HYUNDAI BUSINESS GROUP OF KOREA IN THE SAN JOSE CALIF MAKER OF DATASTORAGE PRODUCTS MAXTOR SAID IT ADJOURNED ITS STOCKHOLDER MEETING YESTERDAY UNTIL DEC 20 TO COLLECT THE NECESSARY TWOTHIRDS MAJORITY OF VOTES TO APPROVE A CHANGE IN ITS CERTIFICATE OF INCORPORATION THE INVESTMENT WOULD LEAVE HYUNDAI WITH 194 MILLION SHARES OR ABOUT 40 OF MAXTOR STOCK PURCHASED AT 770 A SHARE MAXTOR SHARES CLOSED YESTERDAY AT 650 UP 375 CENTS IN TRADING ON THE NASDAQ STOCK MARKET UNDER TERMS OF THE PROPOSED PACT HYUNDAI MAY NOT ACQUIRE MORE THAN 45 OF MAXTOR UNLESS IT MAKES A TENDER FOR ALL OUTSTANDING SHARES THE PACT IS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING KOREAN GOVERNMENT APPROVAL 9312010042 931201 BUSINESS BRIEF CATALYST SEMICONDUCTOR INC DELAYS WITH FLASH CHIPS TO HURT QUARTERLY RESULTS CATALYST SEMICONDUCTOR INC SANTA CLARA CALIF SAID TEMPORARY DELAYS IN SHIPPING ITS NEW FLASH MEMORY CHIPS WILL HURT RESULTS FOR ITS THIRD QUARTER ENDING DEC 31 FLASH MEMORY IS A NEW GENERATION OF CHIP THAT COMBINES HIGH SPEED AND LOW MANUFACTURING COSTS THE DELAYS RELATE TO PRODUCTION PROBLEMS AT AN OUTSIDE SILICON FOUNDRY SUPPLYING THE COMPANY CATALYST SAID CATALYST SAID IT EXPECTS TO REPORT PROFIT OF ABOUT 400000 TO 700000 OR FIVE CENTS TO NINE CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ON SALES OF 13 MILLION TO 15 MILLION THAT COMPARES WITH A LOSS OF 13 MILLION ON SALES OF 79 MILLION A YEAR EARLIER OFFICERS OF THE MEMORYDEVICE COMPANY COULDN'T BE REACHED TO ELABORATE CATALYST SHARES FINISHED AT 10 YESTERDAY UP 125 CENTS ON THE NASDAQ STOCK MARKET 9312010041 931201 BUSINESS BRIEF IMMUNEX CORP AMERICAN CYANAMID CO MAY SEEK TO INCREASE STAKE IMMUNEX CORP SEATTLE SAID AMERICAN CYANAMID CO MAY SEEK TO ENLARGE ITS 535 STAKE IN THE BIOTECHNOLOGY COMPANY WITH OPENMARKET PURCHASES OF IMMUNEX COMMON STOCK IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION AMERICAN CYANAMID A BIG DRUG AND CHEMICAL CONCERN SAID IT INTENDS TO REVIEW ITS INVESTMENT IN IMMUNEX AND ENHANCE ITS HOLDINGS AS MARKET CONDITIONS ALLOW LAST JUNE IMMUNEX MERGED INTO THE LEDERLE ONCOLOGY CORP UNIT OF AMERICAN CYANAMID UNDER TERMS OF THEIR AGREEMENT AMERICAN CYANAMID MAY PURCHASE AS MUCH AS 70 OF IMMUNEX COMMON STOCK PROVIDED THAT IT NOTIFIES IMMUNEX TWO DAYS BEFORE ANY SHARE PURCHASES AND COMPLETES THEM WITHIN 30 DAYS IMMUNEX COULDN'T BE REACHED TO COMMENT IMMUNEX CLOSED AT 2075 ON THE NASDAQ STOCK MARKET YESTERDAY UP 125 9312010040 931201 MARKETING BRIEF TVN ENTERTAINMENT CORP ACCORD LETS CONCERN OFFER SERVICE TO CABLE OPERATORS TVN ENTERTAINMENT CORP A CLOSELY HELD PROVIDER OF PAYPERVIEW MOVIES TO SATELLITEDISH OWNERS SAID IT REACHED AN AGREEMENT WITH ELECTRONIC DATA SYSTEMS CORP THAT WILL ALLOW IT TO PROVIDE ITS PAYPERVIEW SERVICE TO CABLETELEVISION OPERATORS TERMS WEREN'T DISCLOSED EDS A GENERAL MOTORS CORP UNIT WILL PROVIDE ORDER PROCESSING COMPUTING ACCOUNTING TRACKING AND OTHER INFORMATION SERVICES ALLOWING TVN OF BURBANK CALIF TO OFFER A TURNKEY PAYPERVIEW SYSTEM THAT INCLUDES ELECTRONIC PHONE ORDERING CUSTOMER SERVICE AND BILLING AND STUDIO ROYALTY ADMINISTRATION DESCRIBING HIS SERVICE AS NEARVIDEOONDEMAND TVN PRESIDENT STUART Z LEVIN SAID THAT WITH THE EDS ALLIANCE TVN CAN NOW OFFER CABLE OPERATORS AN ECONOMICALLY COMPETITIVE ANSWER TO THE FAST APPROACHING ENTERTAINMENT DELIVERY TECHNOLOGIES WHOSE PRINCIPAL SELLING POSITION WILL BE THEIR MULTIPLE CHANNELS OF PAYPERVIEW MOVIES 9312010039 931201 CORRECTIONS & AMPLIFICATIONS THE LAST THREE PARAGRAPHS OF AN ARTICLE ON PAGE A2 UNDER THE HEADLINE ECONOMISTS LIFT THEIR FORECASTS FOR 4TH QUARTER WERE INADVERTENTLY OMITTED FROM SOME OF YESTERDAY'S EDITIONS THE PARAGRAPHS APPEAR AS A NOTICE TO READERS IN TODAY'S PAPER CERTAIN STUDIES DISPUTED BY THE ENVIRONMENTAL PROTECTION AGENCY SUGGEST THAT THE OXYGENATED AUTO FUEL METHYL TERTIARY BUTYL ETHER OR MTBE HAS BEEN FOUND IN THE BLOOD OF PEOPLE IN ALASKA A NOV 15 ARTICLE INCORRECTLY STATED THAT USE OF THE FUEL HAS BEEN ALLEGED TO INCREASE LEAD LEVELS IN BLOOD THE ARTICLE ALSO INCORRECTLY IDENTIFIED THE ATLANTIC RICHFIELD CO SUBSIDIARY THAT IS THE MAIN MANUFACTURER OF MTBE THE MANUFACTURER IS ARCO CHEMICAL CO NOT ARCO OIL & GAS CO AS STATED IN THE ARTICLE AN ADVERTISING COLUMN ON NOV 19 INCORRECTLY ATTRIBUTED COMMENTS ON THE NEW WANG LABORATORIES INC CAMPAIGN TO PETER HARLEMAN EXECUTIVE VICE PRESIDENT OF LANDOR ASSOCIATES A SAN FRANCISCO MARKETINGCONSULTANT COMPANY THE COMMENTS WERE MADE BY HAL ROSS PRESIDENT OF MAPES & ROSS A MARKETRESEARCH COMPANY 9312010038 931201 TEXAS JOURNAL WINNERS & LOSERS WINNERS INJURED IN A 1989 CAR WRECK COULDN'T SUE THE OTHER DRIVER'S INSURANCE COMPANY FOR FAILING TO SETTLE HER CLAIM BILLION CONTRACT TO RUN THE COMPUTERS FOR BRITAIN'S TAX AGENCY ONE OF THE MOST SOUGHTAFTER COMPUTER JOBS IN EUROPE BANKRUPT UTILITY WOULD EACH GET A MUCH AS 98000 A YEAR FOR LIFE UNDER A PROPOSED EARLYRETIREMENT PLAN MEMBERS SENT OIL PRICES SKIDDING TO FIVEYEAR LOWS FOR PICKETING NORTH PARK MALL JUST TWO WEEKS AFTER COMPLETING A JAIL SENTENCE STEMMING FROM A 1990 PROTEST OF MINORITY HIRING PRACTICES BY LOCAL CONCERNS STATION IN TEXAS WENT OUT OF BUSINESS CITING COMPETITION FROM CONVENIENCE STORES AND COSTLY ENVIRONMENTAL REGULATIONS 9312010035 931201 LETTERS TO THE EDITOR JOB RETRAINING ISN'T THE ANSWER MOST OF THE INDUSTRIES IN THE FREE WORLD ARE LAYING OFF WORKERS AND CUTTING COSTS EVERY PLACE THEY CAN BECAUSE THE DEMAND FOR THEIR PRODUCTS IS DECLINING AND YET ONCE AGAIN PRESIDENT CLINTON IN YOUR OCT 29 POLITICS & POLICY ARTICLE IS IMPLORING MANAGEMENT TO EDUCATE AND RETRAIN WORKERS WHO HAVE LOST THEIR JOBS IMPLYING THAT EDUCATION AND TRAINING WILL SOLVE THE PROBLEM WHY DON'T THOSE IN THIS ADMINISTRATION WHO KEEP PARROTING THIS THEME FOR PRESIDENT CLINTON IDENTIFY THE EMPTY JOBS THAT ARE NOT FILLED FOR LACK OF TRAINING I WON'T PARAPHRASE THE DISRESPECTFUL SAYING USED IN THE CURRENT ADMINISTRATION'S CAMPAIGN BUT I WILL SAY IT'S THE JOBS NOT EDUCATION AND TRAINING I'LL LEAVE IT TO OTHERS TO ADD WHATEVER WORD THEY LIKE 9312010034 931201 LAW LEGAL BEAT COURT LIMITS COMPANIES' LIABILITY FOR OVERLY OPTIMISTIC FORECASTS BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATIONS AREN'T LIABLE TO SHAREHOLDERS FOR OVERLY OPTIMISTIC STATEMENTS MADE TO FINANCIAL ANALYSTS AND JOURNALISTS THAT ARE THEN CITED WITHOUT ATTRIBUTION A FEDERAL APPEALS COURT RULED BUT IN THE CASE INVOLVING TIME WARNER INC THE SECOND US COURT OF APPEALS IN NEW YORK FOUND THAT COMPANIES DO HAVE A DUTY TO UPDATE OPTIMISTIC PROJECTIONS OF BUSINESS PLANS WHENEVER SECRET INFORMATION RENDERS PRIOR PUBLIC STATEMENTS MATERIALLY MISLEADING THAT DUTY EXISTS THE COURT ADDED EVEN IF THE NEW INFORMATION DOESN'T ENTIRELY CONTRADICT THE EARLIER STATEMENTS THE SPECIFIC DECISION INVOLVED AN APPEAL BY TIME WARNER SHAREHOLDERS WHO HAD BROUGHT SUIT IN 1991 ALLEGING SECURITIES FRAUD THE HOLDERS ALLEGED THAT THE COMPANY MISLED INVESTORS BY STATEMENTS AND OMISSIONS MADE IN THE COURSE OF ITS EFFORTS TO REDUCE ITS 10 BILLION DEBT FOLLOWING THE 1989 MERGER OF TIME INC AND WARNER COMMUNICATIONS A DIVIDED PANEL OF THE APPEALS COURT REINSTATED PARTS OF THE LAWSUIT WHICH HAD BEEN DISMISSED BY A TRIAL JUDGE SPECIFICALLY THE SHAREHOLDERS ALLEGED THAT A SERIES OF STATEMENTS BY TIME WARNER OFFICIALS BETWEEN DECEMBER 1990 AND JUNE 1991 MISREPRESENTED THE STATUS OF ATTEMPTS TO FIND INTERNATIONAL STRATEGIC PARTNERS TO INFUSE BILLIONS OF DOLLARS IN CAPITAL AND REDUCE THE MASSIVE DEBT ULTIMATELY TIME WARNER FOUND ONLY TWO STRATEGIC PARTNERSHIPS EACH ON A SMALLER SCALE THAN HOPED FOR THE COMPANY WAS FORCED TO RAISE CAPITAL THROUGH A STOCK OFFERING THAT DILUTED THE RIGHTS OF HOLDERS IN DISMISSING THE COMPLAINT THE TRIAL COURT FOUND THAT ALL PUBLIC STATEMENTS BY THE COMPANY WERE ACCURATE WHEN MADE AND THAT THE COMPANY WAS NOT RESPONSIBLE FOR ANY UNATTRIBUTED STATEMENTS THE APPELLATE COURT HOWEVER FOUND THAT THE SHAREHOLDERS SHOULD BE ABLE TO LITIGATE SEVERAL POINTS IN A 29PAGE OPINION CHIEF JUDGE JON O NEWMAN AGREED WITH THE LOWER COURT THAT PLAINTIFFS SHOULD NOT BE ABLE TO ALLEGE FRAUD ON THE BASIS OF OFFTHERECORD STATEMENTS IN THE PRESS OR IN ANALYSTS' REPORTS AT A MINIMUM THE COURT SAID THE SHAREHOLDER MUST BE ABLE TO IDENTIFY THE SPEAKER IN ORDER TO WITHSTAND THE COMPANY'S MOTION TO DISMISS THE CASE AS A PRACTICAL MATTER THIS MEANS THAT PLAINTIFFS WILL NOT BE ABLE TO USE THE PRETRIAL FACTFINDING PROCESS TO DISCOVER WHO AT A CORPORATION MADE A PARTICULAR OFFTHERECORD STATEMENT RECOGNIZING THAT IT WAS RISKING THE DISMISSAL OF MERITORIOUS SUITS AND THE ENCOURAGEMENT OF FRAUD THE COURT CONCLUDED THAT IT WAS UNLIKELY THAT A SCHEMING COMPANY WOULD INFLATE ITS STOCK PRICE THROUGH FRAUDULENT STATEMENTS WHISPERED TO REPORTERS OR ANALYSTS THE FUNCTION OF FINANCIAL REPORTERS AND SECURITIES ANALYSTS IS TO DETERMINE THE TRUTH ABOUT THE AFFAIRS OF PUBLICLY TRADED COMPANIES FEW REPORTERS OR ANALYSTS WOULD KNOWINGLY ABET A FRAUD THE COURT WROTE IN ADDITION IT SAID THAT INVESTORS TEND TO DISCOUNT INFORMATION IN NEWSPAPERS AND ANALYSTS' REPORTS WHEN THE AUTHOR IS UNABLE TO CITE A SPECIFIC ATTRIBUTABLE INFORMATION FROM THE COMPANY BUT DAVID J BERSHAD AN ATTORNEY WITH MILBERG WEISS BERSHAD HYNES & LERACH WHO REPRESENTED THE PLAINTIFFS CRITICIZED THE DECISION AS LACKING AWARENESS OF THE WAY COMPANIES COMMUNICATE TO THE PRESS THE COURT IS LIMITING THE RIGHTS OF SHAREHOLDERS IN A SIGNIFICANT WAY HE SAID ON ANOTHER POINT THE APPELLATE COURT EXTENDED PRIOR RULINGS IN CONCLUDING THAT MANAGEMENT UNDER CERTAIN CIRCUMSTANCES HAS A DUTY TO UPDATE AND CORRECT BUSINESS PLANS WHEN ALTERNATIVE AVENUES ARE BEING CONSIDERED IN THIS CASE THE COURT FOUND THAT THE PLAINTIFFS SHOULD BE PERMITTED TO GO FORWARD WITH ALLEGATIONS THAT TIME WARNER MATERIALLY MISLED INVESTORS BY SUGGESTING THAT IT WOULD SOLVE ITS ENTIRE DEBT PROBLEM THROUGH STRATEGIC ALLIANCES WITHOUT LATER SAYING IT WAS CONSIDERING AN OFFERING WHEN A CORPORATION IS PURSUING A SPECIFIC BUSINESS GOAL AND ANNOUNCES THAT GOAL AS WELL AS AN INTENDED APPROACH FOR REACHING IT IT MAY COME UNDER AN OBLIGATION TO DISCLOSE OTHER APPROACHES TO REACHING THE GOAL WHEN THOSE APPROACHES ARE UNDER ACTIVE AND SERIOUS CONSIDERATION THE COURT WROTE CLIFFORD DISMISSAL A STATE JUDGE IN NEW YORK DISMISSED BANKFRAUD AND BRIBERY CHARGES AGAINST CLARK CLIFFORD IN THE BANK OF CREDIT & COMMERCE INTERNATIONAL MATTER BECAUSE OF HIS AGE AND ILL HEALTH MR CLIFFORD 86 YEARS OLD PRAISED THE DISMISSAL WHICH BOTH PROSECUTORS AND THE DEFENSE HAD SOUGHT MR CLIFFORD AND HIS LAW PARTNER ROBERT ALTMAN HAD BEEN ACCUSED OF HELPING BCCI GAIN ILLEGAL CONTROL OF FIRST AMERICAN BANKSHARES IN WASHINGTON IN AUGUST MR ALTMAN WAS ACQUITTED AFTER A FOURMONTH TRIAL 9312010033 931201 SPORTS SURFING THE TURF SNOWBOARDERS BRING NEW BUSINESS AND DISCORD TO THE SLOPES BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL YOU'RE PRACTICING SLOW STEM CHRISTIES WHEN A 17YEAROLD ON A LONG BOARD TURNS A WIDE NOISY ARC IN FRONT OF YOU AND FLIES OUT OF SIGHT HE'S NOT ALONE IN THE PAST DECADE SOME 12 MILLION MOSTLY YOUNG PEOPLE HAVE TAKEN UP HIS SPORT SNOWBOARDING THESE SOCALLED SHREDDERS NOW CONSTITUTE 11 OF THE TRAFFIC AT SKI RESORTS THEIR EQUIPMENT IS A JUMBO SKATEBOARD WITHOUT WHEELS FEET BOUND TO THE BOARD SHREDDERS CARVE TURNS DOWN THE MOUNTAINS SOMETIMES ADDING ACROBATICS ALONG THE WAY SCARY AS THEY MAY SEEM TO SOME SKIERS THESE NEW BOARDERS SHOULD BE GREAT NEWS FOR SKI AREAS SOME 70 OF SNOWBOARDERS HAVE NEVER SKIED SO THEY REPRESENT NEW BUSINESS AT A TIME WHEN RESORTS ARE LOSING SOME OF THEIR MOST LOYAL CUSTOMERS TO AGE INJURY AND CHILDBEARING SO WHY AREN'T MORE SKI RESORT OWNERS SMILING CONSIDER THE TYPICAL SHREDDER AN ANTIESTABLISHMENT GENERATION XER GIVEN TO BLACK JEANS BLUE LANGUAGE AND DAREDEVIL ANTICS ON THE SLOPES IT'S BEAVIS AND BUTTHEAD GO SNOWBOARDING SAYS KEN CASTLE PRESIDENT OF INTERNATIONAL RECREATION RESOURCES A SKI AREA CONSULTING FIRM IT'S THE NO 1 MANAGEMENT PROBLEM SKI RESORTS FACE TODAY THE NATIONAL SKIER OPINION SURVEY A RESEARCH FIRM BASED IN BOULDER COLO FOUND IN A 1991 SURVEY OF 6644 SKIERS AND SNOWBOARDERS THAT NEARLY 41 OF SKIERS ARE NERVOUS SKIING AROUND SNOWBOARDERS AND 43 SAID SHREDDERS SHOULD HAVE THEIR OWN TRAILS WHEN ALPINE MEADOWS INC WHICH OWNS PARK CITY AND ALPINE MEADOWS SKI RESORTS IN UTAH AND CALIFORNIA SURVEYED ITS SKIERS LAST YEAR 87 SAID THEY DIDN'T WANT SNOWBOARDS ON THEIR MOUNTAINS FOR THEIR PART THE SHREDDERS THINK THE SKIERS ARE CLOSEMINDED SNOWBOARDER KEVIN DELANEY ARGUES THAT HIS GENERATION'S HOBBIES ARE NO MORE RADICAL THAN THOSE OF THE 1960S WE NEED TO SEE MORE RESPECT OF OTHER PEOPLE'S RIGHTS HE SAYS CONSIDERING THE BUSINESS POTENTIAL OF SNOWBOARDING FEW RESORTS HAVE BANNED SHREDDING ALTOGETHER RESORT OWNERS NOTE THAT SNOWBOARDERS ON AVERAGE HIT THE SLOPES THREE TIMES AS OFTEN AS SKIERS SOME DAYS 50 OF OUR CUSTOMERS ARE SNOWBOARDERS SAYS JACK TURNER VICE PRESIDENT AND MARKETING DIRECTOR AT BEAR MOUNTAIN SKI RESORT IN CALIFORNIA THEY'RE OUR MOST DEDICATED AND LOYAL CUSTOMERS SKI RESORT OWNERS ARE GRASPING FOR SOLUTIONS TO THE UNEASY MIX ON THE SLOPES SOME TRY DIRECTING SKIERS AND SNOWBOARDERS TO DIFFERENT PARTS OF THEIR MOUNTAINS SOME ARE TRYING TO TEACH THE YOUNG RADICALS ETIQUETTE AND SOME LIKE BOREAL AND SODA SPRINGS NEAR LOS ANGELES ARE BUILDING SNOWBOARD PARKS OFFLIMITS TO SKIERS WHERE SNOWBOARDERS CAN PRACTICE THEIR JIBS AND BONKS HITTING OBJECTS WITH THE BOARD AWAY FROM EVERYONE ELSE THE CONFLICT BETWEEN SKIERS AND SNOWBOARDERS IS BOTH CULTURAL AND GENERATIONAL IT'S A HORMONE THING SAYS BOB GILLEN MARKETING MANAGER AT SUGARBUSH RESORT WARREN VT AND SINCE MOST SNOWBOARDERS DON'T TAKE LESSONS THEY NEVER GET INSTRUCTIONS ON GOOD SKIING ETIQUETTE HE SAYS THEY DIDN'T GO TO MISS MANNERS' SKI SCHOOL MANY SKI RESORT MANAGERS SAY SNOWBOARD MANUFACTURERS CONTRIBUTE TO ROWDINESS ON THE SLOPES BY NAMING THEIR PRODUCTS NITRO BONELESS AGGRESSION AND ROACH AND RUNNING ADS THAT FEATURE BIKINICLAD WOMEN IN PROVOCATIVE POSES IN A RECENT AD FOR DIVISION 23 SNOWBOARDS FOR EXAMPLE A YOUNG MAN IN A HOTEL ROOM FACES AWAY FROM THE CAMERA WHILE HE OGLES UNDERWEAR MODELS WITH HIS PANTS DOWN AROUND HIS KNEES THE AD DOESN'T HAVE MUCH TO DO WITH SNOWBOARDING CONCEDES GREG DILEO THE COMPANY'S MARKETING AND SALES DIRECTOR I'M JUST AFTER THE WHOLE CULTURAL IMAGE OF THE SPORT AN AD FOR WAVE RAVE CLOTHING SHOWS A SHREDDER SURFING ALONG THE LIMB OF A HEALTHY TREE AN IMAGE THAT ENVIRONMENTALLY MINDED RESORT MANAGERS DEPLORE BRETT CONRAD THE COMPANY'S OWNER DEFENDS HIS AD I THINK THE ENVIRONMENTAL DAMAGE IS SO MINIMAL IT ISN'T WORTH A DISCUSSION SAYS MR CONRAD I DON'T SEE ANY DIFFERENCE BETWEEN RIDING A SNOWBOARD ON A TREE OR MAKING A CHAIR OUT OF IT THE SNOWBOARD INDUSTRY DENIES THERE IS A PROBLEM THE WHOLE SKIER VERSUS SNOWBOARDER THING IS JUST A JOKE MAINTAINS JAMIE MEISELMAN MANAGING EDITOR OF TRANSWORLD SNOWBOARDING MAGAZINE HE DOESN'T RUN ARTICLES ON SAFETY AND ETIQUETTE BECAUSE HE THINKS THEY WOULD FALL ON DEAF EARS YOU'RE DEALING WITH TEENAGERS WHO ARE VERY CYNICAL AND PESSIMISTIC HE SAYS SOME RESORTS ARE ADOPTING A NO TOLERANCE STANCE WITH SNOWBOARDERS THE HONEYMOON'S OVER SAYS KELLY DAVIDSON GENERAL MANAGER OF COPPER MOUNTAIN A RESORT 90 MINUTES WEST OF DENVER THAT ATTRACTS A LARGE NUMBER OF INNERCITY SKATEBOARDERSTURNEDSNOWBOARDERS LAST YEAR AFTER RECEIVING COMPLAINTS ABOUT SNOWBOARDERS TRAVELING IN MENACING GANGS AND JUMPING THEIR BOARDS OVER FAMILIES AT PICNIC TABLES COPPER INITIATED A SHREDIQUETTE CAMPAIGN DISTRIBUTING A SKIER RESPONSIBILITY CODE IN LIFT LINES ON LAMINATED CARDS SEVERAL RESORTS ARE TRYING SEGREGATION BEAR MOUNTAIN KEEPS SNOWBOARDERS OFF ONE ENTIRE AREA BUT GIVES THEM ANOTHER ALL THEIR OWN KEYSTONE RESORT BANS SNOWBOARDERS BUT AT THE NEARBY AND LESS HIGH TONE ARAPAHOE BASIN RESORT THEY'RE WELCOME IN A RADICAL MOVE BIG AIR GREEN VALLEY ONCE A RESORT FAVORED BY LOS ANGELESAREA ALPINE SKIERS HAS TURNED ITSELF INTO A SNOWBOARDERONLY MOUNTAIN THIS SEASON WHILE IT'S TOO SOON TO TELL IF THIS DECISION WILL PAY OFF THERE'S A TREMENDOUS DEMAND FROM SNOWBOARDERS WHO DON'T WANT TO MIX WITH SKIERS SAYS LLOYD PEAKE THE RESORT'S PRESIDENT ANTISEGREGATIONISTS ABOUND OF COURSE IF YOU SEGREGATE THE SNOWBOARDERS THEY HAVE NO OPPORTUNITY TO LEARN FROM SKIERS SAYS SKIP KING MARKETING MANAGER AT SUNDAY RIVER SKI RESORT IN MAINE SHREDDER SUPPORTERS SAY RESORTS WOULD BE WISE TO ACCOMMODATE THE YOUTHFUL CROWD SHREDDING IS EASIER ON THE KNEES THAN SKIING SO OLDER PEOPLE CAN DO THE SPORT LONGER THEY AREN'T GOING TO GROW UP AND START TO SKI SAYS JAKE BURTON OWNER OF BURTON SNOWBOARDS AND A LONGTIME SNOWBOARD RACER THEY'LL GROW UP AND SNOWBOARD 9312010032 931201 WHO'S NEWS SMITH CORONA CORP SMITH CORONA CORP NEW CANAAN CONN JOHN CUTRONE 39 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF SALES AND MARKETING FOR THIS MAKER OF PORTABLE ELECTRONIC TYPEWRITERS PERSONAL WORD PROCESSORS AND OTHER OFFICE EQUIPMENT MR CUTRONE WHO JOINED THE COMPANY IN MAY HAD BEEN VICE PRESIDENT OF NEW PRODUCT DEVELOPMENT 9312010031 931201 WASHINGTON HOMES LISTING LANDOVER MD WASHINGTON HOMES INC SAID IT APPLIED TO LIST COMMON STOCK ON THE NEW YORK STOCK EXCHANGE THE HOMEBUILDER CURRENTLY TRADED ON THE NASDAQ STOCK MARKET SAID IT EXPECTS TRADING ON THE BIG BOARD TO BEGIN IN JANUARY 1994 UNDER THE SYMBOL WHI 9312010030 931201 WHO'S NEWS PBS IS EXPECTED TO CONFIRM DUGGAN AN FCC COMMISSIONER AS ITS PRESIDENT BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ENDING A LENGTHY SEARCH FOR A NEW PRESIDENT THE PUBLIC BROADCASTING SERVICE IS EXPECTED TO AWARD THE POST TO ERVIN S DUGGAN A COMMISSIONER AT THE FEDERAL COMMUNICATIONS COMMISSION IF HIS APPOINTMENT IS CONFIRMED AT A CLOSEDSESSION PBS BOARD MEETING THIS MORNING MR DUGGAN 54 YEARS OLD WILL BECOME THE FOURTH PRESIDENT IN PBS'S HISTORY HIS IMMEDIATE PREDECESSOR BRUCE CHRISTENSEN LEFT AT THE END OF JULY TO BECOME DEAN OF THE COLLEGE OF FINE ARTS AND COMMUNICATIONS AT BRIGHAM YOUNG UNIVERSITY IN PROVO UTAH MR DUGGAN WILL COME TO PBS WHEN THE FUTURE OF PUBLIC TELEVISION IS IN QUESTION FUNDING HAS BEEN INCREASINGLY HARD TO COME BY AS CORPORATIONS AND STATE GOVERNMENTS CUT BACK THEIR PUBLICTELEVISION BUDGETS CULTURAL DOCUMENTARY AND SCIENCE PROGRAMS ONCE THE EXCLUSIVE PRESERVE OF PUBLIC TELEVISION ARE INCREASINGLY SHOWING UP ON CABLE NETWORKS MOST IMPORTANTLY PUBLIC TELEVISION IS GRAPPLING WITH WHERE IT FITS IN THE MUCHHYPED INFORMATION SUPERHIGHWAY OF THE FUTURE WITH HUNDREDS OF CABLE CHANNELS OFFERING SPECIALIZED PROGRAMMING AND NUMEROUS DISTRIBUTION ALTERNATIVES EDGING OUT TRADITIONAL OVERTHEAIR TV CHANNELS EVEN AS FCC COMMISSIONER MR DUGGAN HAS BEEN A PUBLICTELEVISION ADVOCATE IN A SPEECH LAST MONTH HE EXHORTED THE NEED TO SET ASIDE A PLACE FOR PUBLICSERVICE PROGRAMMING AS POLICY MAKERS MAKE PLANS FOR DIVVYING UP NEW MEDIA SPECTRUMS MR DUGGAN A DEMOCRAT WAS NOMINATED TO THE FCC BY THENPRESIDENT GEORGE BUSH IN JANUARY 1990 HIS TERM AT THE FCC EXPIRES JUNE 30 1994 AS PRESIDENT MR DUGGAN WILL OVERSEE THE NATIONAL PROGRAMMING AND EDUCATIONAL AND SATELLITE SERVICES THAT PBS PROVIDES FOR THE APPROXIMATELY 350 PUBLICTELEVISION STATIONS NATIONWIDE PBS'S 1994 FISCAL YEAR BUDGET IS 161 MILLION MR DUGGAN DECLINED TO COMMENT BEFORE JOINING THE FCC HE WAS A REPORTER FOR THE WASHINGTON POST AND NATIONAL EDITOR OF THE WASHINGTONIAN MAGAZINE HE ALSO WAS A SPECIAL ASSISTANT TO SENATORS LLOYD BENTSEN OF TEXAS AND ADLAI E STEVENSON III OF ILLINOIS AND WORKED AT THE STATE DEPARTMENT AND THE DEPARTMENT OF HEALTH EDUCATION AND WELFARE IN THE 1970S WHILE AN ASSISTANT TO PRESIDENT LYNDON B JOHNSON MR DUGGAN WAS PRESENT WHEN THE INITIAL LEGISLATION CREATING PBS WAS DRAFTED THAT AMONG OTHER REASONS WOULD MAKE HIM A VERY STRONG PRESIDENT SAID FORMER PBS PRESIDENT MR CHRISTENSEN HE KNOWS THE REASON AND THE RATIONALE FOR HAVING PUBLIC TELEVISION ONE MANAGER OF A PBSMEMBER STATION SAID MR DUGGAN'S AWARENESS AND INVOLVEMENT IN THE PUBLIC POLICY ISSUES INVOLVING THE NEW MEDIA IS CRITICAL FOR PBS AT THIS STAGE IN ITS DEVELOPMENT IT'S A TRICKY ENVIRONMENT TO MANEUVER IN AND THIS GUY UNDERSTANDS IT HE CAN INFUSE US WITH A NEW SENSE OF VISION AND PURPOSE 9312010029 931201 LETTERS TO THE EDITOR NICOTINE PATCH HELPS FIGHT AGAINST ADDICTION YOUR NOV 8 STORY AFTER NICOTINE PATCHES SPRAY PILLS INHALERS SAYS MOST SMOKERS CONSIDER NICOTINE PATCHES A FLOP IN FACT THE NICOTINE PATCH WHILE FAR FROM A PANACEA HAS RESULTED IN THE HIGHEST RATES OF SUSTAINED SMOKING CESSATION OF ANY PHARMACOLOGIC PRODUCT AVAILABLE OUR REVIEW PUBLISHED IN THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION NOV 18 1992 STATED THAT THE NICOTINE PATCH MORE THAN DOUBLED SMOKING QUIT RATES WITH OVERALL LONGTERM SUCCESS RATES OF 22 TO 42 THESE ARE EXTRAORDINARILY HIGH RATES OF SUCCESS FOR STOPPING USE OF A SUBSTANCE THAT ACCORDING TO FORMER SURGEON GENERAL C EVERETT KOOP IS AS ADDICTIVE AS HEROIN OR COCAINE MOREOVER THE NICOTINE PATCH HAS BEEN EFFECTIVE IN BLUNTING KEY ASPECTS OF THE NICOTINE WITHDRAWAL SYNDROME THE IRRITABILITY DIFFICULTY CONCENTRATING CRAVING FOR CIGARETTES ETC THAT SO GREATLY CONTRIBUTE TO RELAPSING TO SMOKING FINALLY THE ARTICLE TRIVIALIZES THE POWERFUL AND COMPLEX NATURE OF TOBACCO ADDICTION AS A NEVERENDING SEARCH FOR A PHARMACOLOGIC MAGIC BULLET INCREASINGLY THE MEDICAL COMMUNITY IS RECOGNIZING TOBACCO ADDICTION AS A CHRONIC DISEASE WITH RECURRENT PERIODS OF RELAPSE AND REMISSION BEFORE A PATIENT ACHIEVES SUSTAINED ABSTINENCE FROM SMOKING AS CLINICIANS WE WOULD BE OVERJOYED WITH ACHIEVING A 22 TO 42 CURE RATE AFTER A 6TO8WEEK TREATMENT FOR DIABETES HYPERTENSION OR ANGINA CURING TOBACCO ADDICTION INVOLVES ONGOING INDIVIDUALIZED TREATMENT ADDRESSING BOTH THE PHYSIOLOGIC AS WELL AS THE PSYCHOLOGIC ASPECTS OF SMOKING WHILE NOT A MAGIC BULLET THE NICOTINE PATCH IS THE MOST EFFECTIVE PHARMACOLOGIC AID CURRENTLY AVAILABLE FOR PHYSICIANS TO HELP THEIR PATIENTS WHO SMOKE 9312010028 931201 BUSINESS BRIEF UNITED GAMING INC PACT IS CANCELED TO INVEST EQUITY IN CAPITAL GAMING UNITED GAMING INC TERMINATED AN AGREEMENT TO MAKE A 20 MILLION EQUITY INVESTMENT IN CAPITAL GAMING INTERNATIONAL INC CITING OTHER OPPORTUNITIES UNITED GAMING IN LAS VEGAS SAID IT HAS FUNDED A 4 MILLION BRIDGE LOAN TO CAPITAL GAMING AND THAT IT REMAINS COMMITTED TO FUND UP TO AN ADDITIONAL 6 MILLION BASED ON CAPITAL GAMING'S COMPLETION OF CERTAIN FINANCINGS UNITED GAMING RETAINS CAPITAL GAMING WARRANTS SHANNON L BYBEE PRESIDENT AND CHIEF OPERATING OFFICER OF UNITED GAMING SAID THAT WHILE THE COMPANY STILL BELIEVES THAT CAPITAL GAMING PRESENTS SOME VERY INTERESTING GAMING PROJECTS WE DECIDED TO MOVE ON TO OTHER OPPORTUNITIES THAT ARE PRESENTLY UNDER CONSIDERATION A SPOKESMAN FOR UNITED GAMING ADDED THAT THE COMPANY WAS CONCERNED ABOUT TIMING RISKS LINKED TO DELAYS IN CERTAIN CAPITAL GAMING VENTURES CAPITAL GAMING OFFICIALS COULDN'T BE REACHED FOR COMMENT 9312010027 931201 BUSINESS BRIEF PINNACLE WEST CAPITAL CORP SHAREHOLDER SUITS SETTLED INVOLVING FORMER S&L UNIT PINNACLE WEST CAPITAL CORP SAID IT SETTLED LONGSTANDING LAWSUITS FILED AGAINST IT AND CURRENT AND FORMER OFFICERS AND DIRECTORS BY SHAREHOLDERS AND THE GOVERNMENT'S RESOLUTION TRUST CORP INVOLVING ITS FORMER SAVINGS AND LOAN UNIT MERABANK THE SETTLEMENT CALLS FOR PAYMENTS TOTALING 616 MILLION THE PHOENIXBASED UTILITY HOLDING COMPANY WILL PAY 58 MILLION AND ITS INSURNACE COMPANIES WILL PAY THE REST IT SAID ITS PORTION IS COVERED BY A PREVIOUSLY ESTABLISHED RESERVE THE GOVERNMENT SEIZED MERABANK IN JANUARY 1990 AND LATER FILED SUIT AGAINST FORMER OFFICERS AND DIRECTORS ALLEGING THEY ACTED NEGLIGENTLY AND BREACHED FIDUCIARY DUTIES PINNACLE WEST SAID TWO OF 20 DEFENDANTS IN THE FEDERAL SUIT ARE PURSUING INDEPENDENT CLAIMS AGAINST THE RTC AND ARE NOT PART OF THE SETTLEMENT THE SHAREHOLDER LAWSUITS CHARGED DEFICIENCIES IN THE COMPANY'S PUBLIC COMMUNICATIONS AND FINANCIAL REPORTING A HEARING ON APPROVAL OF THE SETTLEMENT IS SCHEDULED FOR DEC 29 THE COMPANY SAID 9312010026 931201 NOTICE TO READERS THE FOLLOWING ARE THE FINAL THREE PARAGRAPHS OF THE ARTICLE THAT APPEARED UNDER THE HEADLINE ECONOMISTS LIFT THEIR FORECASTS FOR 4TH QUARTER WHICH WERE INADVERTENTLY OMITTED FROM SOME OF YESTERDAY'S EDITIONS THE PHILADELPHIA FEDERAL RESERVE BANK'S QUARTERLY SURVEY OF 34 PRIVATE FORECASTERS ALSO RELEASED MONDAY FOUND A MEDIAN FORECAST FOR THE FOURTH QUARTER OF 35 UP FROM A 32 PREDICTION FOR THE PERIOD MADE THREE MONTHS AGO THE FORECASTERS' INFLATION OUTLOOK IS ALSO IMPROVING OVER THE NEXT FIVE QUARTERS THE PHILADELPHIA FED'S PANEL SEES THE CONSUMER PRICE INDEX INCREASING AT A 3 RATE COMPARED WITH THE 33 FOURTHQUARTER PROJECTION MADE THREE MONTHS AGO OVER THE NEXT DECADE THEY EXPECT INFLATION TO AVERAGE 345 A YEAR THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS' SURVEY FINDS INFLATION FORECASTS HOVERING AROUND 3 FOR THIS YEAR AND 31 FOR NEXT YEAR 9312010025 931201 TANDYCRAFTS BUYS ART CONCERN FORT WORTH TEXAS TANDYCRAFTS INC ACQUIRED IMPULSE DESIGNS INC A LOS ANGELES PRODUCER OF FRAMED WALL ART FOR MASSMARKET RETAILERS TERMS WEREN'T DISCLOSED IMPULSE HAS ANNUAL SALES OF ABOUT 25 MILLION TANDYCRAFTS IS A HOBBIES AND HANDICRAFTS CONCERN ONE OF ITS BUSINESSES IS MAKING PICTURE FRAMES 9312010024 931201 POLITICS & POLICY BEYOND FEMINISM AND FRENCH FRIES PORTRAIT OF FIRST FAMILY DEBUNKS THE ACCEPTED STEREOTYPE BY JEFFREY H BIRNBAUM AND JAMES M PERRY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE BUMPER STICKER SUMS IT UP WE ARE UNHAPPY WITH PRESIDENT CLINTON AND HER HUSBAND IT SAYS IT HAS BECOME THE STEREOTYPE THE BOSSY FEMINIST WIFE BUBBLING OVER WITH LEFTWING IDEAS PUSHING AROUND HER WEAKKNEED FUZZY HUSBAND SHE IS A WORKAHOLIC AND HUMORLESS HE A GOODNATURED GOOD OLD BOY AND LIKE A LOT OF STEREOTYPES ABOUT BILL AND HILLARY RODHAM CLINTON IT'S ALL WRONG IT'S IMPORTANT TO SORT OUT WHO THESE IMMENSELY IMPORTANT PEOPLE REALLY ARE AND HOW THEY OPERATE NEVER BEFORE IN US HISTORY HAS A FIRST COUPLE WORKED TOGETHER AS A TEAM ON THE MOST SIGNIFICANT QUESTIONS OF PUBLIC POLICY NO ONE CAN FULLY UNDERSTAND THE CLINTON PRESIDENCY WITHOUT UNDERSTANDING ITS TWO PRINCIPAL ARCHITECTS OF ALL THE STEREOTYPES THAT HAVE GROWN ABOUT THE FIRST COUPLE NONE IS MORE MISLEADING THAN THE ONE IN WHICH MRS CLINTON IS SEEN AS THE DRAGON LADY OF THE LIBERAL LEFT WHILE THE PRESIDENT IS THE SORT OF POLITICIAN WHO DRIFTS WITH THE LATEST BREEZE AND MAINTAINS NO FIXED LODESTAR INSIDERS AND CLOSE OBSERVERS INSIST THAT IT IS MRS CLINTON WHO IS THIS TEAM'S PRAGMATIST ESPECIALLY ON HEALTH CARE WHERE ALMOST ALL OF HER ENERGY IS DIRECTED SHE'S THE TACTICIAN THE ONE WILLING TO MAKE THE COMPROMISES AND CUT THE DEALS SHE IS VERY MUCH A PRAGMATIST SAYS TREASURY SECRETARY LLOYD BENTSEN WHO HAS HAD HIS OWN SKIRMISHES WITH HER AND CAN BE QUITE CONSERVATIVE ON SOME OF THE ISSUES FOR EXAMPLE MRS CLINTON WAS THE ONE RESPONSIBLE FOR KEEPING THE WORD ABORTION OUT OF THE HEALTHCARE PACKAGE AND AS CHAIRMAN OF THE CHILDREN'S DEFENSE FUND SHE HAD FIRMLY SUPPORTED THE DECISION OF MARIAN WRIGHT EDELMAN THE GROUP'S PRESIDENT TO REMAIN NEUTRAL ON THE ABORTION QUESTION TOO DISRUPTIVE OF THE GROUP'S LONGTERM GOALS THE TWO WOMEN AGREED IN DEVISING THE HEALTHCARE PLAN SHE WAS NEVER ARDENT ABOUT THE FEDERAL GOVERNMENT PAYING FOR ABORTIONS IN FACT SHE MADE CLEAR FROM THE START THAT SHE WOULDN'T LET A CONTROVERSY OVER THE ISSUE SINK THE PRESIDENT'S PLAN SHE'S MORE FLEXIBLE SAYS WHITE HOUSE AIDE PAUL BEGALA SPEAKING OF THE FIRST LADY SHE UNDERSTANDS THE DIFFERENCES BETWEEN MEANS AND ENDS AND THAT IT'S THE ENDS TO WHICH WE ARE ALL COMMITTED IN CONTRAST TO MRS CLINTON'S PRAGMATISM WHEN IT COMES TO ISSUES IN WHICH THE PRESIDENT FEELS A STRONG PERSONAL COMMITMENT THE BUDGET DEAL WAS NEVER THAT HE BECOMES THE ONE WHO IN PRIVATE STUBBORNLY REFUSES TO COMPROMISE WHAT HE SEES AS HIS GRAND VISION HE HOLDS HIS POSITION WHEN HE GETS CONVINCED OF SOMETHING SAYS SECRETARY BENTSEN HIS HARDFOUGHT VICTORY FOR THE NORTH AMERICAN FREE TRADE AGREEMENT WAS SUCH A PERSONAL COMMITMENT THAT TENDENCY HAS BEEN ON DISPLAY IN HIS REFUSAL TO KNUCKLE UNDER ON HEALTH CARE TO THE MANY FORCES THAT CALL FOR A SMALLER AND MORE POLITICALLY PALATABLE PROPOSAL THROUGHOUT THE DELIBERATIONS ON THE PROGRAM THE PRESIDENT CONSISTENTLY REFUSED TO PROPOSE A PLAN THAT WAS LESS THAN COMPREHENSIVE DESPITE ATTEMPTS BY TOP AIDES TO CONVINCE HIM THAT WAS THE SAFER ROUTE MOREOVER IT IS BILL CLINTON NOT HILLARY WHO IS REPONSIBLE FOR THE SINGLE BIGGEST CONTROVERSY SURROUNDING THE HEALTH PLAN ITS FINANCING UP UNTIL THE VERY END OF DELIBERATIONS HE INSISTED THAT HIS PROGRAM WOULD SAVE MORE MONEY THAN THE WASHINGTON NUMBERSCRUNCHERS BELIEVED IN THE END DECLINING TO ADOPT THE BIGGER TAX INCREASE THAT THEY SAID WAS NEEDED TO PAY FOR IT THE MORE PRACTICAL MRS CLINTON FAVORED THE BIGGER TAX INCREASE IN THEIR PERSONAL RELATIONSHIPS MR AND MRS CLINTON ALSO DON'T QUITE FIT THE STEREOTYPES FOR INSTANCE FOR ALL HIS EASYGOING PUBLIC PERSONA THE PRESIDENT REQUIRES TOTAL LOYALTY FROM HIS STAFF HE INSISTS ON ALL THE PRESIDENTIAL PROTOCOL AND EVERYONE MUST CALL HIM MR PRESIDENT MAYBE HE IS THE THOROUGHLY MODERN HUSBAND BUT EVEN SO HE IS PERFECTLY WILLING TO ACCEPT THE FACT HIS WIFE DEFERS TO HIM ON CHANGING HER NAME ON ARRANGING HIS DAILY SCHEDULE CHOOSING HIS MENU DECIDING WHAT MOVIES HE'LL WATCH AND WHO WILL BE INVITED TO SEE THEM MEANWHILE FOR ALL MRS CLINTON'S SOMEWHAT HUMORLESS PUBLIC IMAGE MANY WHITE HOUSE AIDES FIND IT EASIER TO WORK WITH HER THAN WITH HIM SHE CAN BE A FIRM TASKMAKER EVERYONE AGREES BUT SHE RARELY RAISES HER VOICE AND NEVER LOSES HER TEMPER SHE IS GENERALLY THOUGHT TO BE FAIR AND APPROACHABLE AND SOME PEOPLE EVEN TEASE HER A LITTLE HILLARY SAYS POLITICAL STRATEGIST JAMES CARVILLE LEERING LASCIVIOUSLY IN WHAT HAS BECOME A RUNNING GAG YOU'RE A LOT CUTER THAN TIPPER GORE YOU'RE A GOODLOOKING WOMAN NOT LONG AGO MRS CLINTON WAS UNCHARACTERISTICALLY LATE FOR A MEETING THE GAME ISN'T OVER UNTIL THE FAT LADY SINGS SAID THE IRREPRESSIBLE MR CARVILLE AND THE MEETING DOESN'T BEGIN UNTIL THE FIRST LADY ARRIVES MRS CLINTON LISTENED PATIENTLY TO THE CARVILLE PITCH AND THEN REPLIED THAT'S A PRETTY GOOD SUCKUP JAMES BUT YOU HAVE GOT TO DO BETTER DESPITE EARLY RUMORS OF MRS CLINTON'S SUPPOSED LAMPTHROWING AND OTHER TEMPERAMENTAL OUTBURSTS NOBODY ON THE INSIDE IS REALLY TERRIFIED OF HER BUT THE SAME CAN'T BE SAID FOR HER HUSBAND HE IS A SCREAMER WHEN HE GETS CRANKY HE JUTS HIS FINGER MENACINGLY IN THE DIRECTION OF THE OFFENDING AIDE THEN THE DECIBEL LEVEL BEGINS TO RISE WHITE HOUSE AIDES WHO HAVE LIVED WITH SUCH CLINTONIAN ERUPTIONS FOR MONTHS RELISH THE MEMORY OF THE FIRST TIME THE PRESIDENTIAL LAVA BEGAN FLOWING IN THE PRESENCE OF UNSUSPECTING PRESIDENTIAL COUNSELOR DAVID GERGEN THE FORMER NIXON AND REAGAN WHITE HOUSE AIDE HIRED TO BRING ORDER TO THE CLINTON WHITE HOUSE IT WAS ABOARD AIR FORCE ONE EN ROUTE TO CHICAGO ONE OF MR CLINTON'S AIDES TOLD HIM INCORRECTLY AS IT TURNED OUT THAT THE WHITE HOUSE ADVANCE TEAM FOR THE TRIP HAD TREATED CHICAGO MAYOR RICHARD DALEY RUDELY I CAN'T BELIEVE OUR PEOPLE GO OUT THERE AND TREAT THESE PEOPLE LIKE DIRT THE PRESIDENT SHOUTED ADDING A FEW ADJECTIVES THAT CAN'T BE PRINTED IN THIS NEWSPAPER I THOUGHT HE MR GERGEN WOULD DIE REMEMBERS ONE WITNESS HIS EYES WERE LIKE SAUCERS YET THAT ISN'T AT ALL HOW MR CLINTON COMES ACROSS IN PUBLIC WHERE HIS INCLINATION IS ALWAYS TO TRY TO SMOOTH OVER DIFFERENCES AND MAKE PEOPLE FEEL BETTER THAT'S WHY HIS APPEARANCES AT TOWN HALL MEETINGS ARE SO SUCCESSFUL HE CAN PLAY POLICIES EITHER ROUND OR FLAT DEPENDING ON WHICH MAKES THE AUDIENCE HAPPIER MRS CLINTON BY CONTRAST ISN'T AFRAID TO DELIVER NEGATIVE NEWS EVEN TO LIBERAL GROUPS THAT MOST PEOPLE WOULD EXPECT TO BE HER CLOSEST ALLIES IT WAS MRS CLINTON FOR EXAMPLE WHO APPEARED BEFORE THE HOUSE HISPANIC CAUCUS TO SAY THAT THE HEALTHCARE PACKAGE SHE AND THE PRESIDENT WERE PUTTING TOGETHER WOULDN'T COVER UNDOCUMENTED WORKERS HER ARGUMENT COVERAGE WOULD ONLY ENCOURAGE MORE OF THEM TO ENTER THE US ILLEGALLY MR CLINTON IS SUPPOSED TO BE MORE MODERATE THAN HIS WIFE BUT ON MANY ISSUES WHERE HIS INTELLECT IS FOCUSED HE IS IN FACT MORE LIBERAL FOR EXAMPLE MR CLINTON REFUSED EARLIER THIS YEAR TO BEND TO FISCAL CONSERVATIVES IN CONGRESS WHO WANTED TO DRASTICALLY SCALE BACK HIS PROPOSED BOOST IN THE EARNED INCOME TAX CREDIT WHICH HELPS LOWINCOME WORKING FAMILIES THESE DAYS HE IS STRUGGLING TO STOP DEFICIT HAWKS FROM SHRINKING HIS PRECIOUS INVESTMENTS WHICH IS HIS EUPHEMISM FOR INCREASED SPENDING PROGRAMS EVEN WHEN IT COMES TO SOME OF THEIR MOST WIDELY CELEBRATED PERSONAL HABITS THE CLINTONS HAVE A TENDENCY TO CONFOUND THE STEREOTYPES FOR EXAMPLE THE PRESIDENT IS OFTEN PICTURED AS A MAN WHO NEEDS ALMOST NO SLEEP A NIGHT OWL PROWLING THE WHITE HOUSE CORRIDORS BUT THIS ARCHETYPE OF YOUTH AND VIGOR HAS ADOPTED A HABIT FAR MORE IDENTIFIED WITH PREDECESSOR RONALD REAGAN AFTERNOON NAPS AIDES SAY HE STARTED THE HOURLONG SIESTAS IN THE DAYS LEADING UP TO HIS HEALTHCARE SPEECH BEFORE CONGRESS HE'S ALSO GETTING TO BED EARLIER THEY REPORT MOREOVER WHILE THE PRESIDENT HAS ABSORBED A GOOD DEAL OF GRIEF FOR HIS DEVOTION TO JUNK FOOD MRS CLINTON'S OWN NUTRITIONAL HABITS HAVE MANAGED TO ESCAPE ALL BUT UNNOTICED NEEL LATTIMORE HER PRESS SECRETARY CONCEDES THAT THE FIRST LADY DOES SOMETIMES BREAK DOWN AND GOBBLE UP CHEESEBURGERS AND FRIES JUST LIKE HER HUSBAND BUT ONLY OCCASIONALLY THE SPOKESMAN INSISTS WHAT MRS CLINTON IS REALLY HOOKED ON AIDES SAY IS SALSA THE HOTTER THE BETTER AND TORTILLA CHIPS ON THE ROAD SHE EXPECTS THEM TO APPEAR MAGICALLY WHENEVER THERE'S A BREAK IN THE ACTION THEY USUALLY DO 9312010023 931201 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 BANK OF NEW YORK 250 MILLION OF SUBORDINATED NOTES DUE DEC 1 2003 PRICED AS 65S AT 99636 TO YIELD 655 ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE SOLD VIA COMPETITIVE BID WON BY GOLDMAN SACHS & CO THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE TREASURYS THE NOTES ARE RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE BANK IS A UNIT OF BANK OF NEW YORK CO FEDERAL HOME LOAN BANK SYSTEM 83 MILLION OF MEDIUMTERM NOTES PRICED IN TWO ISSUES ACCORDING TO MCM CORPORATEWATCH A 25 MILLION ISSUE OF NOTES DUE DEC 7 1995 WAS PRICED AT PAR AT 429 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF SEVEN BASIS POINTS ABOVE COMPARABLE TREASURYS A 58 MILLION ISSUE OF NOTES DUE DEC 6 1995 WAS PRICED AT PAR AT 423 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE BASIS POINT ABOVE TREASURYS BOTH ISSUES WERE WON BY SALOMON BROTHERS INC WITH A SELLING GROUP FORD MOTOR CREDIT CO 500 MILLION OF NOTES DUE DEC 15 1998 PRICED AS 5625S AT 99746 TO YIELD 5684 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO KOREA DEVELOPMENT BANK 400 MILLION TWOPART ISSUE OF NOTES PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 200 MILLION OF NOTES DUE DEC 1 1998 WAS PRICED AS 5875S AT 9987 TO YIELD 5905 THE NOTES WERE PRICED AT A SPREAD OF 74 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 200 MILLION OF NOTES DUE DEC 1 2005 WAS PRICED AS 675S AT 99617 TO YIELD 6797 THE NOTES WERE PRICED AT A SPREAD OF 98 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P PRIVATE EXPORT FUNDING CORP 150 MILLION OF SECURED NOTES DUE SEPT 15 2003 PRICED AT PAR TO YIELD 548 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS THE NOTES WILL AMORTIZE AND HAVE A FIVEYEAR AVERAGE LIFE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP UNITED ILLUMINATING CO 100 MILLION OF NOTES DUE JAN 15 1999 PRICED AT PAR TO YIELD 62 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO US LEASING INTERNATIONAL INC 250 MILLION OF NOTES DUE DEC 1 2003 PRICED AS 65S AT 99625 TO YIELD 6552 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 71 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO US LEASING IS A UNIT OF FORD MOTOR CO AIRPORT SYSTEMS INTERNATIONAL INC INITIAL OFFERING OF 14 MILLION COMMON SHARES PRICED AT 1025 APIECE THROUGH UNDERWRITERS LED BY FAHNESTOCK & CO GRUPO FINANCIERO SERFIN SAINITIAL OFFERING OF 15 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 24375 APIECE THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC EACH DEPOSITARY SHARE REPRESENTS FOUR SERIES L SHARES BRAZOS RIVER AUTHORITY TEXAS 836 MILLION COLLATERALIZED REVENUE REFUNDING BONDS PRICED BY A CS FIRST BOSTON INC GROUP THE SERIES 1993 BONDS WHICH ARE FOR THE HOUSTON LIGHT & POWER CO PROJECT ARE PRICED AS 56S AT 987 AND ARE TO YIELD 57 ON DECEMBER 1 2017 THIS ISSUE IS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND THE BONDS CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P CALIFORNIA HOUSING FINANCE AGENCY 1759 MILLION 1993 SERIES B SERIES C AND SER IES D HOMEMORTGAGE REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP INCLUDED IN THE THREEPART ISSUE ARE 1501 MILLION SERIES B BONDS WHICH ARE PRICED TO YIELD FROM 285 IN 1994 TO 585 IN 2023 THE 167 MILLION SERIES C BONDS HAVE YIELDS THAT RANGE FROM 35 IN 1995 TO 57 IN 2017 THE 91 MILLION SERIES D BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX ARE 585S PRICED AT PAR AND ARE TO YIELD 585 IN 2023 MOODY'S HAS RATED THE OFFERING DOUBLEA AND S&P HAS ASSIGNED A SINGLEAPLUS RATING CONNECTICUT HOUSING FINANCE AUTHORITY 1732 MILLION 1993 SERIES F HOUSING MORTGAGEFINANCE PROGRAM BONDS PRICED THROUGH UNDERWRITERS LED BY PAINEWEBBER INC THE ISSUE INCLUDES 1408 MILLION SUBSERIES F1 BONDS WHICH ARE PRICED TO YIELD FROM 46 IN 2000 TO 57 IN 2019 THERE ARE ALSO 325 MILLION SUBSERIES F2 BONDS WHICH ARE PRICED TO YIELD FROM 38 IN 1996 TO 46 IN 2000 BOTH MOODY'S AND S&P ARE EXPECTED TO RATE THE BONDS DOUBLEA OHIO PUBLIC FACILITIES COMMISSION 120 MILLION HIGHEREDUCATION CAPITALFACILITIES REVENUE BONDS APPARENTLY WON BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP WITH A BID SETTING THE NET INTEREST COST AT 485 YIELDS FOR REOFFERED BONDS RANGE FROM 34 IN 1995 TO 53 IN 2008 MOODY'S HAS RATED THE BONDS SINGLEA1 AND S&P HAS ASSIGNED A SINGLEAPLUS RATING MBNA AMERICA BANK NA 1 BILLION IN CREDITCARD SECURITIES PRICED BY UNDERWRITERS LED BY LEHMAN BROTHERS INC TO YIELD 26 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE ISSUE WAS PRICED AT LIBOR PLUS 26 BASIS POINTS AT 99 61/64 THE EXPECTED FINAL MATURITY IS JUNE 1999 AND THE LEGAL FINAL MATURITY IS DECEMBER 2000 THERE IS A 12 YIELD CAP ON THE FIVEYEAR FLOATINGRATE SECURITIES THE SECURITIES ARE SOLD THROUGH A SPECIALPURPOSE VEHICLE MBNA MASTER CREDIT CARD TRUST 19934 MBNA AMERICA BANK IS A UNIT OF MBNA CORP BANCO NACIONAL DE MEXICO SA MEXICO 100 MILLION EQUIVALENT OF 1125 MEXICAN PESO BONDS DUE DEC 2 1996 AT ISSUE PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD BONDS DENOMINATED IN PESOS SETTLEMENT AND PAYMENT OF INTEREST AND PRINCIPAL IN DOLLARS BASED ON PREVAILING TESEBONO EXCHANGE RATE FOR PESOS AND DOLLARS LAUNCHED OFF BORROWER'S PESO GLOBAL MEDIUMTERMNOTE PROGRAM FEES UNDISCLOSED PAYABLE SEMIANNUALLY BANCO PACTUAL SA BRAZIL 50 MILLION OF 95 EUROBONDS DUE DEC 10 1996 AT ISSUE PRICE 9947 VIA INTERNATIONALE NEDERLANDEN BANK BONDS YIELD MARGIN OF 520 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE PAYABLE SEMIANNUALLY CETELEM FRANCE 25 BILLION FRENCH FRANCS OF 675 EUROBONDS DUE JAN 3 2006 AT ISSUE AND REOFFER PRICE 9872 VIA SOCIETE GENERALE BONDS YIELD 691 A SPREAD OF 72 BASIS POINTS ABOVE INTERPOLATED FRENCH GOVERNMENTBOND YIELD CURVE BETWEEN 2004 AND 2008 FEES 045 EUROPEAN INVESTMENT BANK SUPRANATIONAL 800 MILLION SWISS FRANCS OF 375 PUBLIC BONDS DUE JAN 28 1999 PRICED AT 102 VIA UNION BANK OF SWITZERLAND FEES 275 GZBBANK GENOSSENSCHAFTLICHE ZENTRALBANK AG STUTTGART GERMANY 200 MILLION MARKS OF 6125 EUROBONDS DUE DEC 19 2003 AT ISSUE PRICE 102 VIA TRINKAUS & BURKHARDT KGAA BONDS YIELD 618 AT 99625 COMANAGERS' BREAKEVEN PRICE HOLDERS CAN CONVERT BONDS ON THE DECEMBER 1995 OR DECEMBER 2001 INTEREST PAYMENT DATE TO FLOATINGRATE NOTES DUE DEC 19 2008 PAYABLE SEMIANNUALLY AT FIVE BASIS POINTS BELOW SIXMONTH MARK LIBOR FEES 25 LESS 0125 FOR LEAD MANAGER HITACHI INTERNATIONAL HOLLAND BV JAPANESE PARENT EIGHT BILLION YEN OF 3 EUROBONDS DUE MARCH 18 1999 AT ISSUE PRICE 101525 VIA SANWA INTERNATIONAL PLC REOFFERED AT 1002 TO YIELD 296 KEEPWELL AGREEMENT WITH HITACHI LTD FEES 1625 INTERNATIONAL FINANCE CORP SUPRANATIONAL 500 MILLION OF 525 EUROBONDS DUE JAN 5 1999 AT ISSUE AND REOFFER PRICE 99665 VIA DEUTSCHE BANK AG LONDON AND MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 533 A MARGIN OF 13 BASIS POINTS OVER COMPARABLE US TREASURY FEES 025 ITOCHU FINANCE EUROPE PLC JAPANESE PARENT FIVE BILLION YEN OF 265 EUROBONDS DUE MARCH 14 1997 AT ISSUE PRICE 1015 VIA SANWA INTERNATIONAL PLC REOFFERED AT 10025 TO YIELD 257 LAUNCHED OFF EURO MEDIUMTERMNOTE PROGRAM KEEPWELL AGREEMENT WITH ITOCHU CORP FEES 125 JAPAN BRIDGE CORP JAPAN 55 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 16 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 0875 COUPON AT PAR VIA CREDIT SUISSE WARRANTS EXERCISABLE FROM DEC 27 TO DEC 5 1997 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 ABOVE CLOSING SHARE PRICE FRIDAY WHEN TERMS FIXED FEES 1625 LION CORP JAPAN 150 MILLION MARKS OF 1625 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE DEC 16 1997 AT ISSUE PRICE PAR VIA WESTDEUTSCHE LANDESBANK GIROZENTRALE WARRANTS EXERCISABLE FROM JAN 10 1994 TO DEC 10 1997 TO PURCHASE ORDINARY COMPANY SHARES AT TERMS TO BE FIXED TUESDAY GUARANTOR DAI ICHI KANGYO LTD FEES 305 LESS 0185 FOR LEAD MANAGER MATSUO BRIDGE CO JAPAN 50 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 22 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 0875 COUPON AT PAR VIA SWISS BANK CORP WARRANTS EXERCISABLE FROM JAN 10 1994 TO DEC 8 1997 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 ABOVE CLOSING SHARE PRICE MONDAY WHEN TERMS FIXED FEES 1625 MEISEI INDUSTRIAL CO JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 22 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 0875 COUPON AT PAR VIA DAIWA BANK SWITZERLAND WARRANTS EXERCISABLE FROM JAN 4 1994 TO DEC 8 1997 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 ABOVE CLOSING SHARE PRICE FRIDAY WHEN TERMS FIXED FEES 1625 OESTERREICHISCHE ELEKTRIZITAETSWIRSTCHAFTS AG AUSTRIA 250 MILLION MARKS OF 6 EUROBONDS DUE JAN 20 2004 AT ISSUE PRICE 10205 VIA BERLINER HANDELS UND FRANKFURTER BANK REOFFERED AT 9935 TO YIELD 609 A MARGIN OF 22 BASIS POINTS ABOVE COMPARABLE GERMAN BUND MAINTENANCE CLAUSE WITH REPUBLIC OF AUSTRIA FEES THREE PT SEMEN CIBINONG INDONESIA 170 MILLION OF 9 EUROBONDS DUE DEC 15 1998 AT ISSUE AND REOFFER PRICE 99842 VIA CHASE INVESTMENT BANK LTD BONDS YIELD MARGIN OF 396 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1125 PAYABLE SEMIANNUALLY SINOTHAI ENGINEERING & CONSTRUCTION CO THAILAND 80 MILLION OF 175 CONVERTIBLE EUROBONDS DUE DEC 17 2003 AT ISSUE PRICE PAR VIA SWISS BANK CORP BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT 424 THAI BAHT A 6 PREMIUM OVER YESTERDAY'S CLOSING SHARE PRICE CONVERSION PERIOD JAN 20 1994 TO OCT 31 2003 BONDS CALLABLE FROM JANUARY 1997 AT PAR SUBJECT TO SHARE PRICE BEING AT LEAST 150 OF CONVERSION PRICE PUT OPTION EXERCISABLE DEC 17 1996 TO YIELD ABOUT 100 BASIS POINTS ABOVE COMPARABLE US TREASURY PUT PRICE 28512 BAHT CONVERTED INTO DOLLARS AT PREVAILING FOREIGNEXCHANGE RATE FEES 25 LESS 033 FOR LEAD MANAGER SOCIEDAD COMERCIAL DEL PLATA ARGENTINA 100 MILLION OF 875 EUROBONDS DUE DEC 14 1998 AT ISSUE AND REOFFER PRICE 998 VIA PARIBAS CAPITAL MARKETS LTD BONDS YIELD 88 A MARGIN OF 368 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE PAYABLE SEMIANNUALLY SPINTAB AB SWEDEN 50 MILLION OF FLOATINGRATE EURONOTES DUE JANUARY 1999 AT ISSUE AND REOFFER PRICE 999 VIA FUJI INTERNATIONAL FINANCE PLC PAYABLE QUARTERLY AT 025 POINT ABOVE THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE FEES 02 SWISS BANK CORP JERSEY BRANCH SWISS BASED 300 MILLION OF 625 SUBORDINATED EUROBONDS DUE JAN 6 2004 AT ISSUE PRICE 101285 VIA SWISS BANK CORP REOFFERED AT 9966 TO YIELD 63 A SPREAD OF 425 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES TWO TIBSA INVERSORA SA ARGENTINA 50 MILLION OF 95 EUROBONDS DUE DEC 14 1998 AT ISSUE AND REOFFER PRICE 985286 VIA BANQUE INDOSUEZ BONDS YIELD MARGIN OF 475 BASIS POINTS OVER COMPARABLE US TREASURY FEES 125 PAYABLE SEMIANNUALLY 9312010022 931201 INSIDE TRACK INSIDERS SELL VENTRITEX STOCK AMID INQUIRY BY THOMAS M BURTON AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL INSIDERS AT VENTRITEX INC HAVE BEEN SELLING SHARES IN THE FASTGROWING COMPANY AMID A FOOD AND DRUG ADMINISTRATION INVESTIGATION INTO WHETHER THE CONCERN HAS IMPROPERLY PROMOTED THE USE OF ITS CARDIAC DEFIBRILLATOR THE FEDERAL INQUIRY COULD HAVE SUBSTANTIAL CONSEQUENCES IN THE RAPIDLY GROWING FIELD OF TREATING DANGEROUS HEARTRHYTHM DEFECTS WITH THE SURGICALLY IMPLANTED SHOCK DEVICES CALLED DEFIBRILLATORS THESE MACHINES ARE CONNECTED TO THE HEART WITH SYSTEMS OF WIRES KNOWN AS LEADS THAT DETECT TOORAPID HEARTBEATS AND USE ELECTRIC IMPULSES TO SLOW THEM FDA OFFICIALS SAY THEIR INQUIRY CENTERS ON WHETHER VENTRITEX HAS IMPROPERLY PROMOTED THE SALE OF ITS DEVICE CALLED CADENCE IN COMBINATION WITH AN ELECTRICAL LEAD CALLED THE ENDOTAK THE STATEOFTHEART ENDOTAK IS MADE BY ELI LILLY & CO ONE OF VENTRITEX'S TWO MAJOR COMPETITORS IN THE BURGEONING FIELD UNLIKE VENTRITEX'S OWN FDAAPPROVED LEADS THE LILLY LEAD CAN BE RUN INTO THE HEART THROUGH A VEIN AND DOESN'T REQUIRE THE RISKY OPENCHEST SURGERY CALLED A THORACOTOMY THE FDA IN APRIL APPROVED THE SALE OF VENTRITEX'S DEFIBRILLATOR BUT WITH LEADS NOT INCLUDING LILLY'S ENDOTAK BECAUSE CLINICAL DATA COMBINING THE TWO WEREN'T CONSIDERED AFTER THE SUBSEQUENT FDA INQUIRY WAS UNDER WAY IN SEPTEMBER TOP EXECUTIVES AND OTHER INSIDERS AT VENTRITEX BEGAN UNLOADING SIZABLE CLUSTERS OF SHARES VENTRITEX OFFICERS SAY THE SALES WERE UNRELATED TO THE FDA INQUIRY AND THAT IN FACT THEY HADN'T LEARNED OF ANY SUCH INVESTIGATION THREE SENIOR OFFICIALS STARTED SELLING SUBSTANTIAL PARCELS OF THEIR HOLDINGS IN LATE OCTOBER SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW IN HIS LARGEST SALE TO DATE ON OCT 27 FRANK M FISCHER PRESIDENT AND CHIEF EXECUTIVE OFFICER SOLD 175000 SHARES OR 44 OF HIS HOLDINGS INCLUDING OPTIONS THAT WERE EXERCISABLE AT AN AVERAGE PRICE OF 3650 EACH VENTRITEX SHARES CLOSED YESTERDAY AT 4225 DOWN 150 OR 34 IN TRADING ON THE NASDAQ STOCK MARKET THE SHARES FETCHED AROUND 23 IN LATE MARCH BEFORE THE CADENCE WAS APPROVED DIRECTOR ROBERT MOMSEN SOLD 15000 SHARES ON OCT 27 OR 68 OF HIS HOLDINGS INCLUDING OPTIONS THAT WERE EXERCISABLE AT AN AVERAGE 3625 EACH VICE PRESIDENT BENJAMIN PLESS SOLD 32000 SHARES OR 14 OF HIS TOTAL HOLDINGS AT 36 APIECE THAT DAY FOUR ADDITIONAL COMPANY OFFICERS MICHAEL SWEENEY ROBERT GAFFNEY EARL CANTY AND MARK MELTZER ALSO RECENTLY SOLD SIZABLE PORTIONS OF THEIR HOLDINGS IN THE COMPANY SEC FILINGS SHOW THE DATA INDICATE THAT SUCH SALES TOTALING 75000 SHARES WERE EITHER THE FIRST OR LARGESTEVER DISPOSALS ON RECORD BY THOSE OFFICERS AS A GROUP VENTRITEX OFFICERS AND DIRECTORS SOLD ABOUT 300000 SHARES OR 22 OF THEIR HOLDINGS FROM LATE OCTOBER TO MIDNOVEMBER A COMPANY OFFICIAL SAID THE SELLING OCCURRED DURING THE FIRM'S NORMAL SELLING WINDOW FOR INSIDERS VENTRITEX'S CHIEF FINANCIAL OFFICER ERIC KELLER SAYS MR FISCHER'S 64 MILLION STOCK SALE RELATED TO THE PURCHASE OF A HOUSE AND THAT OTHER TRANSACTIONS WERE PERSONALFINANCE OR TAXRELATED MATTERS BUT GOVERNMENT INTEREST IN THE COMBINATION OF LILLY'S AND VENTRITEX'S DEVICES WAS BECOMING KNOWN TO SOME IN THE INDUSTRY IN OCTOBER AN OFFICIAL OF LILLY'S CPI UNIT DALE W DEVRIES SAYS HE WAS CONTACTED BY THE FDA ON THIS ISSUE IN SEPTEMBER OFFICIALS AT MEDTRONIC INC OF MINNEAPOLIS THE THIRD MAJOR COMPETITOR IN THE FIELD SAY FDA OFFICIALS IN SEPTEMBER ALSO EXPRESSED TO THEM THEIR INTEREST IN THE MATTER DURING DISCUSSIONS AT A MIDNOVEMBER MEETING OF THE NORTH AMERICAN SOCIETY OF PACING AND ELECTROPHYSIOLOGY AN FDA OFFICIAL EXPRESSED THE AGENCY'S INTENT TO LOOK INTO THE MATTER ACCORDING TO INDIANA UNIVERSITY CARDIOLOGIST DOUGLAS P ZIPES VENTRITEX'S MR FISCHER SAYS THE COMPANY WASN'T NOTIFIED BY THE FDA AND THAT IT KNEW OF NO FDA INQUIRY VENTRITEX IS NOT PROMOTING THIS COMBINATION AND WE HAVE REITERATED TO OUR SALES FORCE NOT TO DO SO MR FISCHER SAYS LILLY'S BROCHURES AND LABELING ACCOMPANYING ITS ENDOTAK LEAD SPECIFY ITS USE WITH ANY OTHER COMPANY'S DEVICE IS CONTRAINDICATED NOT RECOMMENDED AS SAFE CARDIOLOGISTS IN RECENT INTERVIEWS DISAGREED OVER WHETHER THEY PERCEIVE ANY SAFETY CONCERNS OVER THE COMBINED USE A JAY GRAF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LILLY'S CPI UNIT SAYS THE COMBINATION OF LILLY'S LEADS WITH VENTRITEX'S DEFIBRILLATORS MAY BE PERFECTLY SAFE BUT IT MAY NOT MR DEVRIES THE CPI VICE PRESIDENT OF PRODUCT ASSURANCE SAYS WE DON'T BELIEVE THEY THE TWO DEVICES TOGETHER HAVE BEEN ADEQUATELY TESTED WE'RE A LITTLE BIT SURPRISED THAT DOCTORS WOULD TAKE THIS RISK VENTRITEX'S VICE PRESIDENT OF CLINICAL ENGINEERING MR SWEENEY SAYS THE SUCCESSFUL CASE HISTORIES OF MORE THAN 80 EUROPEAN AND CANADIAN PATIENTS HAVE BEEN SUBMITTED TO THE FDA IN HOPES THE AGENCY WILL ENDORSE THE CADENCEENDOTAK COMBINATION VENTRITEX HAS BEEN FAST OUT OF THE BOX RACKING UP SALES OF NEARLY 18 MILLION IN THE MOST RECENT QUARTER UP FROM 17 MILLION IN ALL OF 1992 LILLY'S CPI THE INDUSTRY LEADER SINCE IT INTRODUCED THE FIRST IMPLANTABLE DEFIBRILLATOR IN 1985 HAD DEFIBRILLATORRELATED SALES ESTIMATED AT 60 MILLION IN THE MOST RECENT QUARTER AND MEDTRONIC 30 MILLION ACCORDING TO ANALYST CAROL WINSLOW OF VECTOR SECURITIES INTERNATIONAL INC ANALYSTS HAVE PROJECTED ANNUAL US SALES FOR THE FLEDGLING INDUSTRY OF MORE THAN 1 BILLION IN THE NEXT FEW YEARS 9312010021 931201 LEISURE & ARTS OPERA AND IN FRANCE BY RAYMOND SOKOLOV PARIS I WISH TO THANK THE BATONNIER OF THE ORDER OF LAWYERS OF THE COURT OF PARIS AND MADAME GEORGES FLECHEUX FOR THEIR KIND INVITATION TO THE SECOND NIGHT OF ROBERT WILSON'S PRODUCTION OF PUCCINI'S MADAME BUTTERFLY AT THE BASTILLE OPERA HERE ON NOV 19 THE STAFFBEARER AND MME FLECHEUX TURNED OUT TO BE MY CANAL MY CHANNEL OR SPECIAL CONNECTION TO THIS ALMOST UNAPPROACHABLE VENUE THE BASTILLE IS PERPETUALLY SOLD OUT ESPECIALLY FOR FIRST NIGHTS AND MOST ESPECIALLY FOR ROBERT WILSON INVARIABLY CALLED BOB OVER THERE HIS FANS DON'T KNOW THAT BOB IS SHORT FOR ROBERT MY FRENCH FRIEND CLAUDE EXPLAINED THEY THINK BOB IS A NAME BY ITSELF MR WILSON IS A MAJOR FIGURE IN PARIS WITH A RUMORED SIX PRODUCTIONS SCHEDULED AT THE BASTILLE BEFORE SUMMER SO I NATURALLY THOUGHT OF HIS RESIDENT AMERICAN FACTOTUM AS A LIKELY CANAL THROUGH WHICH TO GAIN ACCESS TO THIS MUSICAL FORTRESS APTLY PLACED ON THE SITE OF A FAMOUS JAIL AND INDEED MY STRATAGEM SEEMED TO HAVE WORKED EVERYTHING WAS PREARRANGED BY FAX I WAS FEELING A BIT SMUG IN FACT WHEN I HEARD THAT OPENING NIGHT HAD BEEN CANCELED BY A STAFF STRIKE CALLED TO PROTEST CUTBACKS ANTICIPATED FOR NEXT YEAR LE TOUT PARIS HAD MISSED THEIR PREMIERE BUT I HAD MY SECONDNIGHT SEATS WAITING FOR ME SECURELY NOT SO BUT THEN A NICE LADY ASKED ME WHAT COUNTRY I WAS FROM I TOLD HER AND WITHOUT EXPLANATION SHE FILLED OUT THE BATON MAN'S FORMAL INVITATION TO THE LAWYERS' BENEFIT I JOINED A HIGHLY PRESENTABLE CROWD OF LEGAL PROFESSIONALS AND THEIR SPOUSES IN A HUGE UNRESERVED SECTION OF THE UGLY BIG HALL THAT LOOKS LIKE A CROSS BETWEEN AN AMERICAN HIGHSCHOOL AUDITORIUM AND A MODERNE COCKTAIL LOUNGE WHAT HAD BOB WROUGHT INSIDERS WERE PREDICTING THAT HIS BUTTERFLY WOULD BE AN EXERCISE IN POSTKABUKI CAMP BUT THIS WAS ONE TIME THAT MR WILSON'S SLOWMOTION PAINTERLY APPROACH TO THE STAGE JUSTIFIED ITSELF COMPLETELY THE BARE SET WAS NOTHING MORE THAN A SLIGHTLY RAISED WOOD PLATFORM AND AN EXQUISITELY ADJUSTABLE BACKDROP OF PURE LIGHT OFTEN THE LIGHT GLOWED AN AUTUMN GOLD BUT IT COULD THROB RED LIKE AN AORTA OR TURN THE WORLD TO NIGHT FIGURES ENTERED IN SILHOUETTE EERIE OR DIGNIFIED AND MOVED INTO FULL VIEW WHERE EVERY SLIGHT MOVEMENT OR CHANGE OF FACIAL FEATURE CAME TO HAVE AN IMPACT SUPERTITLES IN FRENCH AND ENGLISH FAR OVERHEAD DID NOT INTRUDE BUT WERE THERE AS A CRIB FOR THE ITALIAN BEING SUNG SO WELL BELOW IT MIGHT HAVE BEEN OTHERWISE A RUSSIAN TENOR WAS SENT AWAY LATE IN THE REHEARSAL GAME AND REPLACED BY A FULLVOICED FULLBACK OF A SOUTH AFRICAN JOHAN BOTHA IN A CONVENTIONAL PRODUCTION THE MAN'S BULK MIGHT HAVE WORKED AGAINST HIM BUT IN BOBLAND CONVINCING IMMOBILITY IS A PEARL OF GREAT PRICE MR BOTHA STOOD THERE IN HIS ALLWHITE DRAPERY EXUDING SELFINDULGENCE A SPINELESS MOBY DICK HE WAS MEMORABLE AS PINKERTON THE AMERICAN OPPORTUNIST WHO LEAVES BUTTERFLY DIANA SOVIERO THE GEISHA HIGH AND DRY AND PREGNANT RETURNING MANY MONTHS LATER WITH A BLOND WIFE FROM HOME CONSTANCE FEE TO TAKE HIS HALFCASTE CHILD AWAY TO THE LAND OF THE FREE TOO OFTEN PINKERTONS ARE OF THE DASHING TENOR TYPE AND CONFUSE US BY LOOKING LIKE DON JUAN MR BOTHA HAD NO REDEEMING QUALITIES OF THAT SORT NO PANACHE JUST A BIG FELLOW'S CASUAL APPETITE AND REMORSELESS SENSE OF ENTITLEMENT MS SOVIERO IN BLACK SATIN KIMONO FELL INTO MR WILSON'S MINIMALIST/NOH MODE WITH COMPLETE MASTERY UNLIKE MR BOTHA SHE IS NOT AT ALL NEW TO THE OPERA BUT SHE MADE THE SWITCH FROM THE USUAL REALISM TO BOBISM AS IF SHE HAD ALL HER LIFE BEEN COMPRESSING HER THOUGHTS AND SOUL INTO MEANINGFUL SHIFTS OF WEIGHT OR STEPS OR LITTLE ARM MOVEMENTS THAT PLAYED BEAUTIFULLY AGAINST THE WIDEOPEN EMOTION OF THE LIBRETTO AND PUCCINI'S UNABASHED MUSIC MS SOVIERO IS A VERY GOOD IF NOT A FABULOUS SOPRANO BUT SHE WAS A GREAT SINGING ACTRESS IN THIS BUTTERFLY IN THE FIRST FEW MINUTES OF THE OPERA NONE OF THIS WAS CLEAR SHE AND MR BOTHA TOOK A FEW MINUTES TO WARM UP AS DID MYUNGWHUN CHUNG THE BASTILLE'S MUSIC DIRECTOR WHO CONDUCTED TAUTLY AND LED THE WHOLE PRODUCTION TO ITS SAVAGE FRIGHTENING END IT WAS IN THESE SPECTRAL LAST FEW MINUTES THAT THE WILSONIAN METHOD SHOWED HOW ITS DELIBERATELY SLENDER MEANS CAN WITH THE RIGHT PERFORMERS MAKE AN INVISIBLE DAGGER PIERCE YOUR HEART WHERE ONE HAD EXPECTED THE MELODRAMATIC LIBRETTO NOT TO SURVIVE THE WILSON TREATMENT WITHOUT TURNING SILLY OR TRIVIAL THIS SOMBER PRODUCTION ACTUALLY ADDED UNACCUSTOMED WEIGHT WHEN THE BONZE ROMUALD TESAROWICZ PROCESSED ONSTAGE IN THIS BUTTERFLY HE WAS AN ANGEL OF DEATH THE CHILD BILLED AS STEEVE LOPEZ MOVED ABOUT THE STAGE GENERATING PATHOS BUT SHOWING NONE NOT A TEAR NO RUNNING FOR COVER HE MERELY MADE HIS LITTLE LOST MOVES FROM PLACE TO PLACE EACH ONE FOCUSING OUR DREAD SEE RELATED ARTICLE LEISURE & ARTS OPERA ROBERT WILSON IN AMERICA WSJ DEC 1 1993 9312010020 931201 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB SUPPOSE FOR A MINUTE THAT REPUBLICAN GEORGE BUSH HAD BEEN REELECTED PRESIDENT HOW EAGER WOULD HOUSE DEMOCRATS BE TO PASS A NEW LAW AUTHORIZING INDEPENDENT COUNSELS TO INVESTIGATE CHARGES OF WRONGDOING BY A REPUBLICAN ADMINISTRATION VERY EAGER INDEED BUT OF COURSE DEMOCRAT BILL CLINTON WAS ELECTED PRESIDENT SO HOW EAGER HAVE HOUSE DEMOCRATS BEEN TO PASS A LAW AUTHORIZING INDEPENDENT COUNSELS WHO COULD INVESTIGATE CHARGES OF MISCHIEF BY A DEMOCRATIC ADMINISTRATION NOT VERY EAGER IT APPEARS THE DEMOCRATICALLY CONTROLLED HOUSE OF REPRESENTATIVES HAS LEFT TOWN FOR THE YEAR WITHOUT EVEN CONSIDERING A NEW INDEPENDENTCOUNSEL LAW EVEN THOUGH PRESIDENT CLINTON SAYS HE WANTS ONE A HOUSE COMMITTEE APPROVED ONE IN MARCH AND THE SENATE DEFIED EXPECTATIONS BY PASSING ITS OWN VERSION AS A RESULT A DEMOCRATIC ADMINISTRATION WILL ENTER ITS SECOND YEAR WITHOUT FACING THE SAME RISK OF INDEPENDENT INVESTIGATION THAT REPUBLICAN ADMINISTRATIONS LIVED WITH FOR 12 YEARS THAT'S JUST THE KIND OF DOUBLE STANDARD THAT FEEDS PUBLIC CYNICISM ABOUT WASHINGTON THIS SAGA ISN'T SIMPLE AND THE PROBLEMS HARDLY LIE ENTIRELY WITH HOUSE DEMOCRATS REPUBLICANS HAVE BEEN EQUALLY BALKY AND HYPOCRITICAL AND CERTAINLY SOME INVESTIGATIONS HAVE HAD FRIGHTENING STAR CHAMBER OVERTONES THAT NEED TO BE EXPUNGED BEFORE THE LAW IS RENEWED STILL HOUSE DEMOCRATS HAVEN'T SEEMED VERY MOTIVATED AND THEY ARE MORTIFIED OVER THE QUESTION OF WHETHER THE LAW SHOULD BE BROADENED TO COVER CONGRESS ITSELF ALL THIS ILLUSTRATES HOW TANGLED THE QUESTION OF GOVERNMENTAL ETHICS HAS BECOME SINCE THE WATERGATE SCANDAL SPAWNED THE FIRST INDEPENDENTCOUNSEL LAW IN 1978 THE NOTION WAS SIMPLE THE PUBLIC COULDN'T BE CONFIDENT THAT JUSTICE DEPARTMENT OFFICIALS PICKED BY THE PRESIDENT WOULD BE OBJECTIVE WHEN CALLED UPON TO INVESTIGATE CHARGES OF WRONGDOING BY THAT PRESIDENT OR HIS APPOINTEES SO A SPECIAL COURT COULD INSTEAD NAME AN INDEPENDENT INVESTIGATOR THE LAW WAS RENEWED TWICE IN THE 1980S THEN CAME INDEPENDENT COUNSEL LAWRENCE WALSH HE NEARLY KILLED THE CONCEPT WITH HIS 35 MILLION MONSTROSITY OF AN IRANCONTRA INVESTIGATION WHICH SPANNED THREE PRESIDENCIES AND ALMOST SEVEN YEARS THAT LED ENRAGED REPUBLICANS TO DECLARE THAT PROSECUTORIAL POWER WAS RUNNING AMOK SO LAST FALL GOP SENATORS LAY DOWN ON THE LEGISLATIVE TRACKS AND DECLARED THEY WOULD STRANGLE ANY ATTEMPT TO RENEW THE INDEPENDENT COUNSEL STATUTE IT EXPIRED LAST YEAR ENTER BILL CLINTON A CANDIDATE WHO SAID HE FAVORED REAUTHORIZING INDEPENDENT COUNSELS TO HIS CREDIT HE CONTINUED TO SAY THE SAME THING AFTER BECOMING PRESIDENT YET THAT HASN'T MOVED THE HOUSE REP JACK BROOKS THE TOUGH TEXAN WHO RUNS THE JUDICIARY COMMITTEE GOT A NEW BILL THROUGH HIS PANEL IN MARCH AND HAS BEEN PESTERING HOUSE LEADERS TO SCHEDULE A VOTE ON THE FLOOR HE HASN'T SUCCEEDED MEANWHILE OVER IN THE SENATE REPUBLICANS WERE HOLDING THINGS UP SENS CARL LEVIN AND WILLIAM COHEN A DEMOCRAT AND A REPUBLICAN PLEDGED LAST YEAR TO REVIVE THE INDEPENDENTCOUNSEL STATUTE NO MATTER WHO WON THE PRESIDENTIAL ELECTION AND THEY DID SO BUT REPUBLICAN LEADER BOB DOLE HATED THE INDEPENDENTCOUNSEL STATUTE WHEN THE GOP CONTROLLED THE WHITE HOUSE AND TO HIS CREDIT HE STUCK TO HIS POSITION WHEN A DEMOCRAT TOOK OVER HE WARNED THAT REPUBLICANS STILL WOULD FIGHT BUT IN MIDNOVEMBER THE SENATE WORKED THROUGH ITS BITTERNESS ACCEPTED SOME WISE DOLE AMENDMENTS REINING IN THE POWER OF INDEPENDENT COUNSELS AND PASSED A NEW STATUTE SEN LEVIN SAYS A BIPARTISAN SPIRIT PREVAILED IN THE END THOUGH NOT EVERYBODY SEEMED ABLE TO PUT POLITICS ASIDE WHEN MR BUSH WAS IN THE WHITE HOUSE LAST YEAR 28 GOP SENATORS SIGNED A LETTER CALLING THE INDEPENDENTCOUNSEL STATUTE PERNICIOUS AND ILLADVISED THIS YEAR WITH A DEMOCRAT IN THE WHITE HOUSE NINE OF THOSE SENATORS DECIDED TO VOTE FOR A NEW STATUTE AFTER ALL THE REAL WORRY OF MANY HOUSE MEMBERS IS THE FEAR THAT THE PUBLIC WILL DEMAND THAT THE INDEPENDENTCOUNSEL LAW BE EXTENDED TO CONGRESS BUT THAT FEAR IS EXAGGERATED THERE'S NO REAL NEED TO EXTEND THE LAW'S REACH TO THE LEGISLATIVE BRANCH WHERE MAINLINE PROSECUTORS DON'T HAVE THE SAME CONFLICTOFINTEREST PROBLEM THEY HAVE LOOKING INSIDE THE EXECUTIVE BRANCH FRED WERTHEIMER THE HEAD OF COMMON CAUSE AND A VETERAN WATCHDOG OF THE PUBLIC INTEREST SAYS HE DOESN'T CALL FOR BROADENING THE STATUTE TO COVER CONGRESS BESIDES THE SENATE PUNCTURED THAT ISSUE BY KILLING AN AMENDMENT TO COVER CONGRESS IN THE NEW LAW SO THE HOUSE HAS LITTLE REASON TO STALL PRIVATELY CONGRESSIONAL AIDES SAY THEY THINK REP BROOKS'S BILL WILL BE CONSIDERED EARLY NEXT YEAR LAWMAKERS ARE LIKELY TO DECIDE THAT THE LAW FOR ALL ITS FLAWS IS STILL BETTER THAN THE ALTERNATIVE OF ESCALATING PUBLIC CYNICISM 9312010019 931201 TUESDAY'S MARKETS BONDS FALL AS ECONOMY STRENGTHENS INDUSTRIAL AVERAGE GAINS 615 TO 368395 THE DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL SIGNS OF A STRENGTHENING ECONOMY SENT BOND PRICES TUMBLING BUT THE DOW JONES INDUSTRIAL AVERAGE FOUGHT OFF DOWNWARD PRESSURE FROM THE BOND MARKET TO END MODESTLY HIGHER THE DOLLAR WAS MIXED THE INDUSTRIAL AVERAGE ROSE 615 POINTS TO 368395 STANDARD & POOR'S 500STOCK INDEX SLIPPED 011 TO 46179 AND THE NASDAQ COMPOSITE INDEX GAINED 285 TO 75439 THE BOND MARKET SUFFERED ON SEVERAL FRONTS ANALYSTS SAID TRADERS WERE SPOOKED EARLY BY A STORY IN THE WASHINGTON POST SAYING THAT SOME CLINTON ADMINISTRATION OFFICIALS BELIEVE THE UNEMPLOYMENT RATE COULD FALL BELOW 6 NEXT YEAR INDICATING A STRONGER ECONOMY THAT COULD PRESAGE HIGHER INFLATION BONDS ALSO WERE HIT BY A SURGE IN CONSUMER CONFIDENCE FOR NOVEMBER THE CONFERENCE BOARD A TRADE GROUP SAID ITS CONSUMER CONFIDENCE INDEX JUMPED TO 712 FAR ABOVE THE 603 ANALYSTS HAD FORECAST FINALLY A ROBUST REPORT ON BUSINESS ACTIVITY FROM THE CHICAGO PURCHASING MANAGEMENT ASSOCIATION INDICATED THAT THE MANUFACTURING SECTOR OF THE ECONOMY IS ACCELERATING RAPIDLY THE CHICAGO REPORT IS OFTEN SEEN AS A FORECASTER OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SURVEY DUE OUT TODAY WHILE THE BOND MARKET HAD BEEN EXPECTING A STRENGTHENING OF THE ECONOMY YESTERDAY'S NUMBERS PROVIDED A REALIZATION OF THAT SAID MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK THE DATA CONFIRM INVESTORS' CONCERNS ABOUT THE STRENGTHENING ECONOMY STOCK PRICES MOSTLY WITHSTOOD THE GLOOM IN THE BOND MARKET BUT ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS IN ST LOUIS NOTED THAT THE INDUSTRIALS' GAIN MASKED AN UNDERLYING WEAKNESS IN THE BROAD MARKET WHERE MORE ISSUES FELL THAN ROSE THE BROAD LIST OF ADVANCING AND DECLINING ISSUES IS TELLING THE REAL MESSAGE AND THAT IS WE STARTED A CORRECTION FOUR WEEKS AGO AND IT HASN'T FINISHED ITS WORK YET MR GOLDMAN SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 067 TO 10637 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2864 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1095 ISSUES FELL AND 990 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 7/8 POINT OR OVER 875 FOR EACH 1000 FACE AMOUNT TO YIELD 630 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17150 MARKS AND 10908 YEN COMPARED WITH 17080 MARKS AND 10920 YEN MONDAY 9312010018 931201 INTERNATIONAL EUROTUNNEL'S EXTENDED DEADLINE LONDON EUROTUNNEL THE ANGLOFRENCH CONSORTIUM SET UP TO BUILD AND OPERATE THE TUNNEL CONNECTING BRITAIN AND FRANCE SAID A SYNDICATE OF ITS LENDERS AGREED TO EXTEND THE DEADLINE FOR ITS FUNDING PLAN TO JAN 4 THE ORIGINAL DEADLINE WAS YESTERDAY THE CONSORTIUM HAD BEEN IN TECHNICAL BREACH OF ITS AGREEMENTS WITH THE BANKS BUT THE BANK SYNDICATE AGREED TO GRANT A WAIVER ON THOSE AGREEMENTS UNTIL MAY 6 THE OPENING DATE FOR THE CHANNEL TUNNEL THE NEW FUNDING PLAN DUE IN JANUARY WILL OUTLINE EUROTUNNEL'S FUNDING PLANS BEYOND MAY A EUROTUNNEL SPOKESWOMAN SAID THE FUNDING PLAN IS SEPARATE FROM A CAPITAL INCREASE WHICH WILL BE VOTED ON BY EUROTUNNEL PLC SHAREHOLDERS DEC 15 AND HAS ALREADY BEEN APPROVED BY FRENCH EUROTUNNEL SA'S SHAREHOLDERS 9312010017 931201 SYBASE OFFERS TO BUY UK FIRM EMERYVILLE CALIF SYBASE INC SAID IT OFFERED TO ACQUIRE ALL OUTSTANDING SHARES AND OPTIONS OF OASIS GROUP PLC IN A STOCK SWAP VALUED AT 21 MILLION SYBASE A DEVELOPER OF DATABASEMANAGEMENT SOFTWARE SAID OASIS DIRECTORS RECOMMENDED THAT ITS SHAREHOLDERS AND OPTIONS HOLDERS ACCEPT THE OFFER WHICH IS EXPECTED TO BE COMPLETED IN JANUARY OASIS IS A CONSULTING FIRM BASED IN MAIDENHEAD UNITED KINGDOM 9312010016 931201 IN SEARCH OF JOBS AUTO MAKER TAKES WRONG TURN BY THOMAS MAYER LAST WEEK VOLKSWAGEN AG GERMANY'S LARGEST AUTO MAKER STRUCK A DEAL THAT HAS INSPIRED THE IMAGINATION OF A COUNTRY FULL OF ANGST ABOUT THE RISE IN UNEMPLOYMENT TO SAVE SOME 30000 JOBS THE UNIONS AND MANAGEMENT OF VW AGREED TO MOVE TO A FOURDAY WORKWEEK THE 20 REDUCTION IN WORK HOURS WILL ACCORDING TO STATEMENTS BY THE COMPANY REDUCE VW'S WAGE BILL BY A LITTLE LESS THAN 20 FROM WHAT IT WOULD HAVE BEEN AT THE BEGINNING OF NEXT YEAR AT THE SAME TIME THE UNION CLAIMS THAT THE ANNUAL TAKEHOME PAY OF A VW WORKER WILL BE CUT BY JUST 10 FROM PRESENT LEVELS THE DEAL HAS BEEN PRAISED AS A MODEL FOR SOLVING GERMANY'S PRESSING UNEMPLOYMENT PROBLEM AND THE UNIONS AND SOME POLITICIANS ARE LOBBYING TO EXTEND THE AGREEMENT TO OTHER COMPANIES AND INDUSTRIES REDUCED WORK HOURS HAVE ALSO BEEN CONSIDERED BY THE EC COMMISSION AS A MEANS OF REDUCING UNEMPLOYMENT ACROSS THE EUROPEAN COMMUNITY HOWEVER RATHER THAN HAVING PAVED THE WAY TOWARD AN INNOVATIVE SOLUTION TO GERMANY'S JOBLESS PROBLEM THE VW DEAL MAY HAVE REMOVED THE ROADBLOCKS TO A DEADEND STREET THAT IF TAKEN BY THE WHOLE OF GERMAN INDUSTRY COULD SEVERELY WEAKEN THE ECONOMY PROSPECTS FOR THE GERMAN LABOR MARKET ARE INDEED BLEAK THE COUNCIL OF ECONOMIC EXPERTS RECENTLY FORECAST THAT BY 1994 THERE WILL BE SOME FOUR MILLION REGISTERED UNEMPLOYED IN THE GERMAN ECONOMY WITH AN ADDITIONAL 15 MILLION HIDDEN UNEMPLOYED ALREADY IN EASTERN GERMANY IE THOSE PEOPLE IN GOVERNMENTFINANCED RETRAINING EMPLOYMENT PROMOTION AND EARLY RETIREMENT SCHEMES THE TOTAL NUMBER OF UNEMPLOYED COULD INDEED REACH 55 MILLION IN 1994 OR 14 OF THE LABOR FORCE THIS WOULD AMOUNT TO A VIRTUAL DOUBLING OF THE UNEMPLOYMENT RATE SINCE 1989 THE REASONS FOR THIS SURGE IN UNEMPLOYMENT ARE NOT MYSTERIOUS GERMAN UNIFICATION RESULTED IN A LIMITED INCREASE IN THE PANGERMAN CAPITAL STOCK BUT ALSO IN A LARGE INCREASE IN THE LABOR FORCE WITH A FLEXIBLE LABOR MARKET THIS WOULD HAVE LED TO A DECLINE IN WAGES RELATIVE TO PROFITS BUT THE OPPOSITE HAPPENED IN AN ATTEMPT TO DEFY THE LAWS OF ECONOMIC GRAVITY GERMAN UNIONS PUSHED UP WAGES IN ABSOLUTE TERMS AND RELATIVE TO PROFITS BETWEEN THE FIRST HALF OF 1991 AND THE FIRST HALF OF 1993 THE ANNUAL GERMAN WAGE RATE ROSE BY 8 IN EASTERN GERMANY IT ROSE AT AN ANNUAL RATE OF 28 IN 1992 WESTERN GERMAN UNIT LABOR COSTS IE WAGES ADJUSTED FOR PRODUCTIVITY WERE 23 ABOVE THE AVERAGE OF MAJOR INDUSTRIAL COUNTRIES 20 ABOVE THOSE IN THE US AND 28 ABOVE THOSE IN JAPAN AND ACCORDING TO GOVERNMENT STATISTICS FOR THE FIRST HALF OF 1993 EASTERN GERMAN UNIT LABOR COSTS EXCEEDED WESTERN GERMAN UNIT LABOR COSTS BY 90 THUS THE SURGE IN WAGES ONLY CREATED A SHORTLIVED DEMAND BOOM IN 199092 THAT WAS QUICKLY FOLLOWED BY A SEVERE SQUEEZE IN PROFITS AND EVENTUALLY BY A BUST THE ECONOMIC DOWNTURN IS NOW PUSHING UP UNEMPLOYMENT THE STRAIGHTFORWARD SOLUTION TO GERMANY'S DIRE UNEMPLOYMENT PROBLEM WOULD BE TO CORRECT THE MISTAKEN WAGE POLICY OF THE PAST YEARS THE UNIONS ARE TRYING TO SIDESTEP THIS SOLUTION WHICH WOULD LEAD TO A DROP IN WAGES AND ARE PERSUADING EMPLOYERS TO REDUCE WORKING HOURS INSTEAD THE AGREEMENT AT VOLKSWAGEN HAS BEEN A MILESTONE IN THIS STRATEGY APART FROM THE SIMPLE LOGIC THAT A SHORTAGE OF WORK OUGHT TO BE DISTRIBUTED EQUITABLY THE ADVOCATES OF REDUCED WORK HOURS POINT TO THE APPARENT SUCCESS OF THIS INSTRUMENT IN THE LATE 1980S IN THE MID1980S THE UNIONS EMBARKED UPON A CAMPAIGN FOR REDUCED WORK HOURS WITH FULL WAGE COMPENSATION WHICH CULMINATED IN MULTIYEAR WAGE DEALS IN 198788 IN EXCHANGE FOR A CUT IN WORKING TIME THUS BETWEEN 1986 AND 1990 THE AVERAGE NUMBER OF HOURS WORKED BY EMPLOYEES FELL BY 32 WHILE EMPLOYMENT ROSE BY 4 AT THE SAME TIME WAGES ROSE BY 194 APPEARING TO SUPPORT THE UNIONS' CLAIMS THAT REDUCED HOURS ARE BENEFICIAL FOR EMPLOYMENT AND CAN BE IMPLEMENTED WITHOUT A CUT IN PAY HOWEVER EMPLOYERS SUCCEEDED IN RAISING HOURLY PRODUCTIVITY BY AN IMPRESSIVE 119 IN PART BY INTRODUCING MORE FLEXIBILITY IN WORK HOURS SO THAT UNIT LABOR COSTS INCREASED BY ONLY 67 DURING THIS PERIOD 25 PERCENTAGE POINTS LESS THAN THE GROWTH IN PRICES AS MEASURED BY THE GNP DEFLATOR THE RESULTING INCREASE IN PROFIT MARGINS RATHER THAN THE CUT IN WORKING TIME THEN INDUCED HIGH RATES OF INVESTMENT WHICH LED TO JOB CREATION HENCE WORKING TIME REDUCTIONS SUCH AS THOSE AGREED TO AT VW WOULD PROVIDE LONGTERM RELIEF TO THE LABOR MARKET ONLY IF UNIT LABOR COSTS WERE LOWERED HOWEVER THIS IS DOUBTFUL GIVEN THE PRESENT RECESSIONARY ENVIRONMENT MORE LIKELY UNIT COSTS WILL REMAIN UNCHANGED OR EVEN INCREASE THUS PROHIBITING COMPANIES FROM GAINING MARKET SHARES THROUGH BETTER PRICING IF REDUCED WORK HOURS WERE EXTENDED TO THE ECONOMY AT LARGE THE PURCHASING POWER OF THE WORK FORCE AND THUS DEMAND WOULD SHRINK BY THE AMOUNT OF WAGE REDUCTIONS THE TAX BASE WOULD SHRINK AND A SOLUTION TO GERMANY'S DEFICIT PROBLEM WOULD BE MADE MUCH MORE COMPLICATED ONLY A CORRECTION OF THE MISALIGNED COST OF LABOR RELATIVE TO CAPITAL WILL PROVIDE A LASTING SOLUTION TO THE UNEMPLOYMENT PROBLEM PAYROLL TAXES WOULD HAVE TO BE SLASHED WHICH WOULD REQUIRE MAKING GERMANY'S SOCIAL SECURITY SYSTEM LESS GENEROUS AND NET COMPENSATION WOULD HAVE TO BE REDUCED IN PART BY CUTTING INTO NONWAGE BENEFITS PRODUCTIVITY COULD BE RAISED BY INCREASING WORKING TIME FLEXIBILITY WITHOUT CHANGING TOTAL WORK HOURS AT THE SAME TIME THE RATE OF RETURN ON CAPITAL WOULD NEED TO BE IMPROVED BY REDUCING BUSINESS TAXES AND TAXES ON SAVING AND INVESTMENT AT PRESENT ONLY A FEW TENTATIVE STEPS IN THE RIGHT DIRECTION HAVE BEEN TAKEN THE GOVERNMENT HAS PROMISED TO LOWER BUSINESS TAXES AND AT OPEL VOLKSWAGEN'S RIVAL AUTO MAKER EMPLOYEES HAVE AGREED TO FORGO COMPENSATION THAT IS NOT CONTRACTUALLY GUARANTEED IN RETURN FOR GREATER JOB SECURITY WITHOUT CUTS IN WORKING TIME AT DAIMLERBENZ WHICH PROBABLY HAS A LARGER ADJUSTMENT NEED THAN OPEL REDUCTIONS OF BENEFITS THAT ARE NOT CONTRACTUALLY GUARANTEED ARE BEING COUPLED WITH A FAIRLY LARGE NUMBER OF LAYOFFS EVEN IN THESE EXAMPLES THE UNIONAGREED WAGE RATE WHICH IS NOT UP FOR NEGOTIATION SETS A BINDING CONSTRAINT FOR THE TRADEOFF BETWEEN WAGES AND EMPLOYMENT UNFORTUNATELY WHILE RECOGNITION OF THE NEED FOR REDUCING COMPENSATION IS GROWING AT THE GRASSROOTS LEVEL UNION REPRESENTATIVES STILL CLING TO OLD HABITS IG METALL THE METALWORKERS' UNION THAT ALSO NEGOTIATES FOR AUTO WORKERS HAS JUST DEMANDED A 55 TO 6 WAGE INCREASE FOR 1994 THIS IS HARDLY A RECIPE FOR JOB PRESERVATION MR MAYER IS AN ECONOMIST AT GOLDMAN SACHS & CO IN FRANKFURT 9312010015 931201 TEXAS JOURNAL THE LIST GROWS OF REASONS TO DO BUSINESS IN TEXAS BY ROBERT JOHNSON UNVEIL YOUR BIG STAGE PLAY IN HOUSTON AND THE NEW YORK CRITICS WON'T COME THAT UNLIKELY SALES PITCH HELPED WIN HOUSTON THE FIRST THEATRICAL VERSION OF WALT DISNEY CO'S MUSICAL BEAUTY AND THE BEAST DISNEY OFFICIALS WANTED A LOCATION WHERE THE TRADITIONAL OUTOFTOWN TRYOUT COULD BE RELATIVELY LOWKEY SAYS FRANK YOUNG FOUNDER OF THEATER UNDER THE STARS A LOCAL GROUP THAT IS COPRODUCING THE PLAY'S HOUSTON RUN BEAUTY WHICH HAD A PREVIEW PERFORMANCE SATURDAY AND OPENS TO THE PUBLIC TOMORROW IS THE FIRST BROADWAYBOUND STAGE SHOW TRIED BY DISNEY AND THE COMPANY DIDN'T WANT BAD EARLY REVIEWS TO HURT IT MR YOUNG SAYS IT WILL CLOSE IN HOUSTON DEC 26 AND MOVE TO NEW YORK IN MARCH THE PLAY'S BACKERS BELIEVE HOUSTON THOUGH THE NATION'S FOURTHLARGEST CITY ISN'T CLOSE ENOUGH TO A MAJOR ARTS CENTER TO DRAW REVIEWERS IN THE MAGNITUDE LIKELY IN BOSTON WASHINGTON OR OTHER TRADITIONAL OPENINGNIGHT CITIES NEW YORK CRITICS ARE GETTING ON THE TRAIN NOW AND GOING TO KENNEDY CENTER IN WASHINGTON WHEN A BIG PLAY OPENS THERE MR YOUNG SAYS THEY CAN KILL YOUR PLAY BEFORE IT STARTS YOUR WRITERS NEED A CHANCE TO CORRECT SOME THINGS BEFORE THE PLAY GETS HIT ROBERT MCTYRE DISNEY'S PRODUCER ON THE PROJECT AGREES THAT OPENING IN HOUSTON IS LESS CRITICINTENSIVE THAN IT WOULD HAVE BEEN IN SEVERAL POSSIBLE SITES ON THE EAST AND WEST COASTS AND ALTHOUGH SOME CRITICS DO OCCASIONALLY TAKE THEIR PENS TO PREVIEW PERFORMANCES MR MCTYRE NOTES GRATEFULLY THAT NEITHER THE NEW YORK NOR HOUSTON PAPERS HAVE YET REVIEWED BEAUTY STILL THE SHOW HAS SIX SONGS THAT WEREN'T IN THE HIT DISNEY MOVIE VERSION TWO YEARS AGO IT'S MORE ELABORATE THAN CATS' OR MISS SAIGON' AND TECHNICALLY MORE COMPLICATED WITH SPECTACULAR PYROTECHNICS BY THE DISNEY PEOPLE MR YOUNG SAYS SO WHEN OUTOFTOWN CRITICS HEAR ABOUT ALL THAT WON'T THEY DESCEND ON HOUSTON WELL MR YOUNG REPLIES WE HAVEN'T INVITED THEM 9312010012 931201 ABREAST OF THE MARKET STOCK PRICES END MIXED AS SIGNALS OF A STRONGER ECONOMY INCREASE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES ENDED MIXED AMID MORE SIGNS THAT THE ECONOMY IS BUBBLING HELPED BY A RALLY IN OIL STOCKS THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 615 POINTS TO 368395 BUT STANDARD & POOR'S 500STOCK INDEX EASED 011 TO 46179 AND THE NASDAQ COMPOSITE INDEX ADDED 285 TO 75439 VOLUME ON THE NEW YORK STOCK EXCHANGE CLIMBED TO 2864 MILLION SHARES FROM 2701 MILLION SHARES MONDAY ADVANCING ISSUES TRAILED DECLINERS 990 TO 1095 STOCKS STARTED THE DAY LOWER AS A SELLOFF IN THE BOND MARKET PREYED UPON STOCK INVESTORS BUT EQUITY PRICES BEGAN FIRMING AROUND NOON AS INVESTORS BEGAN TO FOCUS ON THE PROSPECT THAT STRONGER ECONOMIC GROWTH WILL LEAD TO BETTER CORPORATE PROFITS IN THE FOURTH QUARTER ONE OF THE REASONS INVESTORS ARE ANTICIPATING A ROBUST FOURTH QUARTER IS THAT MORE AND MORE ECONOMIC REPORTS ARE POINTING TO A TURNAROUND IN CONSUMER SENTIMENT AND A PICKUP IN BUSINESS ACTIVITY ONLY YESTERDAY THE CONFERENCE BOARD REPORTED THAT CONSUMER CONFIDENCE JUMPED TO 712 IN NOVEMBER FROM 605 IN OCTOBER THAT TOGETHER WITH A REPORT FROM THE CHICAGO PURCHASING MANAGEMENT ASSOCIATION HELPED SOME INVESTORS MAKE THE CASE FOR BUYING STOCKS THE CONSUMER CONFIDENCE NUMBERS WERE WAY UP SAID JEFFREY SHAMES CHIEF EQUITY OFFICER AT MASSACHUSETTS FINANCIAL SERVICES THE POSITIVE IS THAT THE ECONOMY IS GROWING BUT THE NEGATIVE IS THAT IT COULD DRIVE INTEREST RATES HIGHER INDEED AS STOCK PRICES POWERED HIGHER YESTERDAY BOND PRICES SLUMPED WITH THE YIELD ON THE TREASURY'S 30YEAR BOND RISING TO 630 FROM 623 MONDAY RAO CHALASANI STOCK STRATEGIST AT KEMPER SECURITIES SAID THAT STOCKS WERE PROPPED UP BY A REBOUND IN THE OIL GROUP AND A RALLY AMONG TECHNOLOGY STOCKS OIL SHARES WHICH HAD BEEN PUMMELED LAST WEEK AFTER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FAILED TO CUT PRODUCTION SNAPPED BACK YESTERDAY CHEVRON JUMPED 1 1/4 TO 86 7/8 EXXON 7/8 TO 62 3/4 AND TEXACO 5/8 TO 64 1/8 ACCOUNTING FOR NEARLY ALL OF THE GAIN IN THE DOW INDUSTRIALS TECHNOLOGY SHARES ALSO TURNED IN A STELLAR PERFORMANCE AS INVESTORS BEGAN BETTING THAT THIS GROUP WILL FARE WELL AS THE ECONOMY GAINS MOMENTUM HEWLETTPACKARD SURGED 1 1/8 TO 73 3/4 COMPAQ 1 1/8 TO 72 3/8 TEXAS INSTRUMENTS 2 1/4 TO 64 1/4 AND INTEL 1 5/8 TO 61 1/2 ON NASDAQ DELL COMPUTER JUMPED 3 TO 27 1/8 ON NASDAQ THOUGH THE COMPUTER COMPANY'S THIRDQUARTER PROFIT DROPPED 63 TO 26 CENTS A SHARE FROM 72 CENTS A YEAR AGO THE EARNINGS WERE WELL ABOVE ANALYSTS EXPECTATIONS FOLLOWING THE REPORT PRUDENTIAL SECURITIES RAISED ITS RATING ON DELL TO BUY FROM HOLD GOODYEAR TIRE & RUBBER ADVANCED 2 1/8 TO 44 1/2 FIRST BOSTON REPEATED A BUY RATING ON THE COMPANY'S SHARES WALMART FELL 7/8 TO 28 5/8 AND MAY DEPARTMENT STORES SLID 1 1/8 TO 42 3/8 PRUDENTIAL SECURITIES LOWERED ITS RATINGS ON THE COMPANIES TO HOLD FROM BUY OWENSILLINOIS GAINED 7/8 TO 11 1/8 GOLDMAN SACHS ADDED THE STOCK TO ITS PRIORITY LIST TALBOTS GAINED 2 1/2 TO 26 3/4 THE CLOTHING RETAILER'S EARNINGS SOARED TO 47 CENTS A SHARE IN THE THIRD QUARTER FROM 29 CENTS A SHARE A YEAR AGO FRUIT OF THE LOOM SLUMPED 2 1/8 TO 33 ON THE AMERICAN STOCK EXCHANGE BUCKINGHAM RESEARCH GROUP ANALYST DENNIS ROSENBERG CUT HIS ESTIMATE OF THE COMPANY'S FOURTHQUARTER PROFIT TO 55 CENTS TO 60 CENTS A SHARE FROM 64 CENTS A SHARE PREVIOUSLY STOCKS OF GENERIC DRUG COMPANIES WEAKENED MYLAN LABS SANK 1 7/8 TO 26 7/8 IVAX 5/8 TO 25 1/4 AND COPLEY PHARMACEUTICAL 1/2 TO 37 ON NASDAQ ROBERT WILLENS A TAX AND ACCOUNTING ANALYST AT LEHMAN BROTHERS SUGGESTED THE STOCKS MAY BE REACTING TO AN INTERNAL REVENUE SERVICE RULING LAST WEEK THAT ESSENTIALLY DEPRIVES COMPANIES OF TAKING TAX CREDITS FOR RESEARCH RELATED TO THE CREATION OF GENERIC DRUGS THE ISSUE IS THAT COMPANIES CANNOT TAKE CREDITS IN THE FUTURE AND IF THEY IMPROPERLY TOOK CREDITS IN THE PAST THEY COULD BE LIABLE FOR A FAIR AMOUNT OF BACK TAXES SAID MR WILLENS US HEALTHCARE ROSE 1 3/8 TO 57 7/8 UBS SECURITIES INITIATED COVERAGE OF THE COMPANY WITH A BUY RATING HOUSEHOLD INTERNATIONAL SKIDDED 2 3/4 TO 33 THE COMPANY SAID THAT ITS 1994 EARNINGS WILL LIKELY BE AT THE LOWER END OF ANALYSTS' ESTIMATES WALL STREET IS PROJECTING THAT THE COMPANY WILL EARN BETWEEN 350 AND 390 A SHARE IN 1994 9312010011 931201 WHO'S NEWS AMTRAK APPOINTS DOWNS AS CHAIRMAN AMID FINANCIAL WOES SERVICE PROBLEMS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL THOMAS M DOWNS WAS NAMED PRESIDENT AND CHAIRMAN OF AMTRAK AN APPOINTMENT THAT WILL PIT HIM AGAINST DEEPENING FINANCIAL WOES AND WORRIES ABOUT SERVICE PROBLEMS AT THE NATIONAL PASSENGER RAILROAD MR DOWNS SUCCEEDS W GRAHAM CLAYTOR JR 81 YEARS OLD WHO HEADED AMTRAK FOR MORE THAN A DECADE AND IS RETIRING EFFECTIVE MONDAY THE 50YEAROLD MR DOWNS BRINGS A REPUTATION AS A QUIET BUT EFFECTIVE CAREER TRANSPORTATION BUREAUCRAT SINCE MARCH 1990 HE HAS HEADED NEW JERSEY'S HIGHWAY AND TRANSIT NETWORK AS COMMISSIONER OF THE STATE'S TRANSPORTATION DEPARTMENT MR DOWNS WILL FACE A TRIPLE TASK OF REVERSING A DOWNHILL SLIDE IN AMTRAK SERVICE RESTORING PUBLIC CONFIDENCE AND ATTEMPTING TO SAVE AMTRAK FROM BUDGET CUTS MR DOWNS IS WALKING INTO A COMPANY IN CRISIS DUE TO A COMBINATION OF FLAT REVENUES ERODING MAINTENANCE LOSS OF PUBLIC CONFIDENCE AND DETERIORATING SERVICE SAID WILLIAM WITHUHN TRANSPORTATION CURATOR AT THE SMITHSONIAN INSTITUTION IN WASHINGTON INDEED WITHIN HOURS OF ANNOUNCING MR DOWNS'S NEW POST AMTRAK SAID ONE OF ITS PASSENGER TRAINS HAD HIT A TRUCK IN FLORIDA AND DERAILED INJURING MORE THAN 60 PEOPLE DURING HIS TENURE MR CLAYTOR SAVED AMTRAK FROM FEDERAL BUDGET CUTTERS THROUGHOUT THE 1980S WITH A COMBINATION OF ADROIT MANAGEMENT AND SKILLFUL REPRESENTATION IN CONGRESS AMTRAK ORDERED NEW PASSENGER CARS AND LOCOMOTIVES WHILE INSTITUTING SOME SERVICE EXPANSIONS A FINANCIAL SQUEEZE IN THE PAST COUPLE OF YEARS HAS PROMPTED AMTRAK TO CUT MAINTENANCE THAT MOVE HAS RESULTED IN LATE TRAINS DIRTY CARS DECLINING STAFF MORALE AND INCREASED PASSENGER COMPLAINTS MR CLAYTOR GOT AMTRAK OVER THE HURDLE OF THE REAGANBUSH YEARS SAID MORTIMER DOWNEY DEPUTY SECRETARY OF THE US DEPARTMENT OF TRANSPORTATION BUT HE STAGGERED TO THE FINISH LINE WHEN THERE IS ANOTHER RACE TO BE RUN IN AN INTERVIEW MR DOWNS SAID HE PLANS TO INSTILL IN AMTRAK A FIXATION FOR SURVEYING AND UNDERSTANDING ITS CUSTOMERS IMPROVING CLEANLINESS AND BOOSTING ONTIME PERFORMANCE THERE ARE A LOT OF PEOPLE WHO WANT TO BELIEVE THAT PASSENGER RAIL TRANSPORTATION CAN FIT AS A VIABLE PART OF THE NATION'S TRANSPORTATION NETWORK SAID MR DOWNS BUT THEY ARE WAITING TO SEE IF IT CAN ACTUALLY HAPPEN AMTRAK HAS TO IMPROVE ITS SERVICES AND DEPENDABILITY AND ULTIMATELY SEE ITS RIDERSHIP INCREASE MR DOWNS HAS PROVED HIMSELF AN ADEPT BEHINDTHESCENES MANAGER IN A NUMBER OF POLITICALLY TRICKY JOBS AS HEAD OF NEW JERSEY'S TRANSPORTATION DEPARTMENT FOR EXAMPLE MR DOWNS PUSHED FOR A BALANCED APPROACH TO TRANSPORTATION ADVANCING TRANSIT PROJECTS AND COMPLETING HIGHWAY BUILDING WHILE ATTEMPTING TO WEAN PEOPLE FROM THEIR AUTOMOBILES BEFORE TAKING THE TOP TRANSPORTATION JOB IN NEW JERSEY MR DOWNS SERVED AS PRESIDENT OF THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY IN NEW YORK CITY 9312010010 931201 COMMODITIES PRICES OF US GRAIN TUMBLE AMID INDICATIONS THAT EXPORT VOLUME WILL BE WEAKER NEXT YEAR BY SCOTT KILMAN AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL US GRAIN PRICES SANK AMID FORECASTS FOR WEAKER EXPORTS NEXT YEAR THE AGRICULTURE DEPARTMENT AND THE INTERNATIONAL WHEAT COUNCIL AN INTERGOVERNMENTAL BODY IN LONDON SEPARATELY SIGNALED YESTERDAY THAT US GRAIN SHIPMENTS WILL CONTINUE TO COME UNDER PRESSURE IN SEVERAL REGIONS OF THE WORLD EUGENE MOOS AGRICULTURE DEPARTMENT UNDERSECRETARY FOR INTERNATIONAL AFFAIRS AND COMMODITY PROGRAMS SAID AT AN ANNUAL OUTLOOK CONFERENCE IN WASHINGTON YESTERDAY THAT THE DEPARTMENT EXPECTS US WHEAT AND FLOUR EXPORT VOLUME DURING THE FISCAL YEAR ENDING SEPTEMBER 1994 TO DROP ABOUT 17 FROM FISCAL 1993 EXPORT VALUE IS EXPECTED TO DROP MORE THAN 20 THE DEPARTMENT ALSO FORECAST THE EXPORT VOLUME OF US CORN AND OTHER COARSE GRAINS TO DROP 15 IN FISCAL 1994 FROM FISCAL 1993 IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY DECLINED 275 CENTS A BUSHEL TO SETTLE AT 35050 THE MARCH CORN CONTRACT FELL 375 CENTS A BUSHEL TO SETTLE AT 2855 A BUSHEL THE MARCH SOYBEAN CONTRACT DROPPED 1225 CENTS A BUSHEL TO SETTLE AT 678 A BUSHEL THE AGRICULTURE DEPARTMENT AND THE COUNCIL PRIMARILY BLAMED THE POOR US EXPORT OUTLOOK ON WEAKER DEMAND FOR FOREIGN GRAIN BY CHINA AND THE FORMER SOVIET UNION MR MOOS SAID THE DEPARTMENT EXPECTS THE FORMER SOVIET UNION TO BUY ABOUT 12 BILLION OF US FARM GOODS DURING FISCAL 1994 COMPARED WITH ROUGHLY 16 BILLION FOR FISCAL 1993 AND 27 BILLION FOR FISCAL 1992 THAT FORECAST RAISES A LOT OF QUESTIONS BECAUSE OF THE ECONOMIC CHAOS THERE FOOD IMPORTS WILL LIKELY HINGE ON THE AMOUNT OF EASY CREDIT AND DONATIONS THAT THE FORMER SOVIET UNION CAN ARRANGE WITH THE US BUT US OFFICIALS ARE JUST NOW EVALUATING WHETHER FORMER REPUBLICS SUCH AS RUSSIA ARE ELIGIBLE FOR FOOD AID RUSSIA HAS TO MAKE TWO 1487 MILLION PAYMENTS IN DECEMBER TO THE US TO CATCH UP ON GRAIN DEBTS IN AN AGRICULTURE DEPARTMENT LOAN PROGRAM FROM WHICH IT WAS SUSPENDED LAST YEAR THE AGRICULTURE DEPARTMENT HAS ALREADY ANNOUNCED ITS 1994 LOAN PROGRAMS FOR FORMER SOVIET STATES SUCH AS UKRAINE AND TURKMENISTAN BUT IT ISN'T CLEAR YET HOW SOON RUSSIA MIGHT BE REINSTATED INTO THE LOAN PROGRAM LET ALONE HOW MUCH AID MOSCOW WOULD THEN RECEIVE AS A RESULT AGRICULTURE DEPARTMENT OFFICIALS SAID YESTERDAY THAT ITS FORECAST SHOULDN'T BE INTERPRETED AS A SIGN THAT THE CLINTON ADMINISTRATION IS WILLING TO MAKE 12 BILLION OF FOOD AID AVAILABLE NEXT YEAR TO THE FORMER STATES MOSCOW HAS BEEN ON A CAMPAIGN TO REDUCE ITS DEPENDENCE ON FOREIGN GRAIN SOME OF RUSSIA'S LIVESTOCK POPULATION HAS BEEN LIQUIDATED AND AUTHORITIES ARE WORKING TO REDUCE FIELD LOSSES AS A RESULT RUSSIAN IMPORTS OF US FARM GOODS ARE EXPECTED TO FALL IN 1994 EVEN THOUGH THE RUSSIAN HARVESTS WEREN'T AS BIG AS EXPECTED EARLIER IN NOVEMBER THE AGRICULTURE DEPARTMENT PROJECTED THE 12 FORMER SOVIET STATES TO HARVEST 1778 MILLION METRIC TONS OF GRAIN COMPARED WITH 1823 MILLION METRIC TONS LAST YEAR THE COUNCIL IN LONDON FORECAST FOREIGN WHEAT PURCHASES BY THE FORMER SOVIET STATES TO TUMBLE TO 104 MILLION METRIC TONS IN THE LATEST SEASON FROM 167 MILLION METRIC TONS THE PREVIOUS YEAR CREDITS FOR FOREIGN PURCHASES WILL BE EXTREMELY DIFFICULT TO OBTAIN THE COUNCIL SAID A RECORD WHEAT HARVEST IN CHINA IS ALSO EXPECTED TO TRIM ITS DEMAND FOR FOREIGN GRAIN AT THE SAME TIME RISING CHINESE CORN EXPORTS ARE EXPECTED TO DISPLACE US CORN SALES TO SOME ASIAN CUSTOMERS SUCH AS SOUTH KOREA MR MOOS SAID THE AGRICULTURE DEPARTMENT EXPECTS US FARM SALES OF ABOUT 300 MILLION TO CHINA IN FISCAL 1994 ABOUT HALF OF WHAT IT WAS TWO YEARS AGO IN ADDITION TO RISING WHEAT HARVESTS CHINA'S SHRINKING DEMAND FOR FOREIGN GRAIN IS ALSO THE RESULT OF A NATIONWIDE AUSTERITY PROGRAM AND FOREIGNCURRENCY RESTRICTIONS THE COUNCIL SAID THE COUNCIL FORECAST CHINESE WHEAT IMPORTS AT ABOUT SIX MILLION METRIC TONS COMPARED WITH THE 16 MILLION METRIC TONS IT WAS IMPORTING ANNUALLY A FEW YEARS AGO THE COUNCIL PEGGED WORLDGRAIN PRODUCTION THIS SEASON AT 1355 MILLION METRIC TONS COMPARED WITH 1423 MILLION METRIC TONS LAST YEAR WORLD OUTPUT WAS REDUCED BY AMONG OTHER THINGS THE RAINRELATED CROP DISASTER IN THE US FARM BELT IN OTHER COMMODITY MARKETS ENERGY WORLD OIL PRICES ROSE SLIGHTLY YESTERDAY FOR THE FIRST TIME SINCE THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ENDED ITS MEETING LAST WEEK WITHOUT REDUCING PRODUCTION ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR JANUARY DELIVERY SETTLED 12 CENTS HIGHER AT 1543 A BARREL ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE CRUDE FUTURES WERE UP AS MUCH AS 30 CENTS A BARREL BUT THE GAINS WERE HARDLY ENOUGH TO ERASE THE STEEP LOSSES TOTALING MORE THAN 1 A BARREL IN PREVIOUS TRADING SESSIONS IN THE WAKE OF THE OPEC MEETING AT THE CLOSE OF TRADING YESTERDAY OIL MARKETS APPEARED TO BE DIRECTIONLESS AFTER BEING WHIPSAWED DURING THE DAYFIRST BY RUSSIA'S ANNOUNCEMENT IT WOULD CUT ITS OIL EXPORTS SHARPLY AND SECOND BY A REPORT THAT IRAQ IS WILLING TO ACCEPT THE UNITED NATIONS OFFER OF A LIMITED SALE OF ITS OIL FOR HUMANITARIAN PURPOSES BOTH REPORTS WERE DISCOUNTED LATER COFFEE COFFEEFUTURES PRICES FELL ON TRADER SKEPTICISM ABOUT BRAZIL'S ADHERENCE TO A COFFEEEXPORT LIMITING AGREEMENT AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MARCH DELIVERY WAS DOWN 18 CENTS TO 776 CENTS A POUND BRAZIL HASN'T YET BOUGHT THE REQUIRED AMOUNT OF COFFEE FOR THE MONTH OF NOVEMBER TO ADHERE TO THE EXPORTLIMITING SCHEME OF AFRICAN AND LATINAMERICAN COFFEEPRODUCING NATIONS BRAZIL'S PARTICIPATION IS SEEN AS CRUCIAL TO THE SCHEME BECAUSE BRAZIL IS THE WORLD'S BIGGEST COFFEE PRODUCER WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH SAID BRAZIL NEEDS TO BUY 65000 BAGS OF COFFEE TO CONFORM WITH THE AGREEMENT BUT THAT IT FAILED YESTERDAY TO SCHEDULE AN AUCTION TO BUY THE COFFEE 9312010009 931201 WHO'S NEWS UJB FINANCIAL CORP UJB FINANCIAL CORP PRINCETON NJ THIS BANKING COMPANY SAID SABRY J MACKOUL 53 YEARS OLD WILL BE NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS UNITED JERSEY BANK HACKENSACK NJ AT THE UNIT'S BOARD MEETING DEC 20 THE BANK HAS ASSETS OF 63 BILLION MR MACKOUL SUCCEEDS FRED M MOSES 58 WHO RESIGNED MR MACKOUL WILL CONTINUE AS UJB FINANCIAL'S EXECUTIVE VICE PRESIDENT FOR RETAIL BANKING 9312010008 931201 BUSINESS BRIEF GENERAL MOTORS CORP GM MAY END REPORTING OF 10DAY SALES DATA GENERAL MOTORS CORP IS EXPECTED TO ANNOUNCE TODAY THAT BEGINNING IN JANUARY IT WILL NO LONGER PUBLICLY REPORT 10DAY SALES FIGURES ACCORDING TO THE ASSOCIATED PRESS JACK SMITH GM'S CHIEF EXECUTIVE OFFICER WAS QUOTED BY THE NEWS SERVICE AS SAYING LAST NIGHT THAT HE PERSONALLY OPPOSES REPORTING THE SALES FIGURES BECAUSE OF THE RESOURCES IT TAKES AND WE ARE SUPPOSED TO BE CUTTING COSTS AREN'T WE MR SMITH WAS QUOTED AS SAYING AT A RECEPTION TO INTRODUCE THE 1995 BUICK RIVIERA WHILE MR SMITH DIDN'T ANNOUNCE THE END OF THE PRACTICE ONE GM OFFICIAL WHO SPOKE ON CONDITION OF ANONYMITY SAID THE WORLD'S NO1RANKED AUTO MAKER WOULD DISCLOSE ITS PLANS TODAY FORD MOTOR CO THE NO 2 AUTO MAKER IS EXPECTED TO QUICKLY FOLLOW SUIT CHRYSLER CORP STOPPED REPORTING 10DAY SALES TWO YEARS AGO AND REPORTS THEM ONLY MONTHLY JAPANESE AUTO MAKERS REPORT SALES OF VEHICLES THEY BUILD IN THE NORTH AMERICA EVERY 10 DAYS BUT REPORT SALES OF IMPORTS ON A MONTHLY BASIS 9312010007 931201 LEISURE & ARTS OPERA ROBERT WILSON IN AMERICA BY MARK SWED BROOKLYN NY THREEANDAHALF YEARS AGO ROBERT WILSON'S THE BLACK RIDER WITH MUSIC BY TOM WAITS AND A TEXT BY WILLIAM BURROUGHS FELT LIKE THE HIPPEST SHOW ON THE FACE OF THE EARTH CREATED BY THE VANGUARD THALIA THEATER IN HAMBURG GERMANY THIS WEIRD CABARETSTYLE GLOSS ON THE SUPERNATURAL GERMAN FOLK TALE THAT INSPIRED WEBER'S 19THCENTURY OPERA DER FREISCHUTZ PROVED AN INTERNATIONAL SENSATION WITH THE PRODUCTION TRAVELLING TO MAJOR EUROPEAN CITIES AND FESTIVALS AND EVEN TO SOUTH AMERICA NOW AFTER A COUPLE OF TORTUOUS YEARS OF FUNDRAISING AND NEGOTIATING WITH THE ARTISTICALLY UNCOMPROMISING THALIA THEATER THE BLACK RIDER HAS FINALLY ARRIVED IN AMERICA AT THE NEXT WAVE FESTIVAL OF THE BROOKLYN ACADEMY OF MUSIC WHERE IT CAN BEEN SEEN THROUGH TONIGHT BUT ON OPENING NIGHT ITS HIPNESS WAS SHARPLY CALLED INTO QUESTION AS ONE HEARD LONGTIME FRIENDS OF THE HIP AT INTERMISSION TIME ACCUSING BAM AND MR WILSON OF SELLING OUT WHAT SET THESE STALWARTS OF THE CUTTING EDGE TO HOWLING WAS THE UNWONTED ACCESSIBILITY OF THE BLACK RIDER MR WILSON'S EASIEST AND MOST AMUSING PIECE TO DATE A SORT OF ROCKY HORROR SHOW FOR GROWNUPS CABARET FOR THE ART WORLD AND THREE PENNY OPERA FOR THE '90S ALL ROLLED INTO ONE THE BLACK RIDER IS ABOUT A HUNTSMAN WHO OBTAINS MAGIC BULLETS FROM THE DEVIL IN ORDER TO WIN A MARKSMANSHIP CONTEST AND WIN THE WOMAN HE LOVES THE CAUTIONARY TALE ENDS BADLY OF COURSE AND THE INTERMISSION SOPHISTICATES WERE WORRIED THAT BAM DESPITE ITS NEARLY QUARTERCENTURY SUPPORT FOR MR WILSON'S WORK HAD THIS TIME IN ITS OVERT COURTING OF NECESSARY CORPORATE SPONSORSHIP AND APPEAL TO EUROTRASH TASTE MADE A SIMILARLY UNWISE DEAL BUT IT DIDN'T THE SHOW ACTUALLY MAY NO LONGER BE QUITE AS HIP OR OUTLANDISH AS IT HAD ONCE SEEMED MESSRS WILSON WAITS AND BURROUGHS HAVE ALL MOVED ON AND A SIMILARLY MACABRE SPLENDOR HAS SINCE BECOME COMMONPLACE WHAT WITH FRANCIS FORD COPPOLA'S FILM DRACULA IN WHICH MR WAITS INCIDENTALLY APPEARS AS AN ACTOR NOR IS ALL OF MR WILSON'S LOOPY IMAGERY QUITE AS EFFECTIVE IN THE LARGE ORNATE FORMAL BAM OPERA HOUSE AS IT HAD BEEN ELSEWHERE ESPECIALLY IN A WONDERFUL NONPROSCENIUM SPACE WHERE IT WAS GIVEN THE SUMMER OF 1990 AT THE VIENNA FESTIVAL THE PRODUCTION'S COSPONSOR STILL TRY TO FIND ANYTHING THIS THEATRICALLY ARRESTING ON ANY OTHER AMERICAN STAGE AT THE MOMENT MUCH OF THE ALLURE OF THE BLACK RIDER AND ITS ULTIMATE IMPORTANCE LIES IN THE OSTENSIBLE INCOMPATIBILITY OF ITS COLLABORATORS MR WILSON IS A COOL ELEGANT MODERNIST MAKER OF GLEAMING IMAGERY THE SANDPAPERVOICED MR WAITS IS FASCINATED BY ALL THINGS SEEDY WHILE MR BURROUGHS IS A SURVIVOR FROM THE BEAT GENERATION WITH A SEEDY ELEGANCE ALL HIS OWN ON TOP OF THESE INCONGRUITIES IS THE FURTHER ONE OF THESE THREE ALLAMERICANS CREATING A MUSICTHEATER PIECE BASED UPON GERMAN LEGEND FOR A GERMANLANGUAGE TROUPE BUT MR WILSON HAPPENS TO BE A MASTER OF SURREAL CONTEXT ALLOWING EVERY ELEMENT IN A PRODUCTION LIGHT SOUNDSCAPE AND EACH PERFORMER TO KEEP ITS OWN IDENTITY AT ONE POINT FOR EXAMPLE HE STAGES A RUSSIAN DANCE WITH SLOW TAI CHI MOVEMENTS THAT INTENSIFY THE ANTIC ECCENTRICITY OF MR WAITS'S MUSIC AN EXUBERANT IMITATION OF EAST EUROPEAN JEWISH FOLK MUSIC ANOTHER TIME MR WILSON VISUALLY ACCOMPANIES A ROMANTIC BALLAD BY MR WAITS BY FLOATING HIS LOVERS ROMANTICALLY INTO SPACE A GESTURE SO EXTRAVAGANTLY CORNY THAT IT MAKES THE HINT OF THE SARDONIC IN MR WAITS LYRICS FEEL DOWNRIGHT DROLL INDEED IT IS MR WAITS'S MUSIC THAT I SUSPECT IS THE REAL REASON FOR THE ONGOING SUCCESS OF THE BLACK RIDER MR WILSON WHO DOES MANY SERIOUS PRODUCTIONS OF OPERA AND THEATER AND NEW WORK A YEAR THROUGHOUT EUROPE SEEMS TO BE TAKING A HOLIDAY HERE ESPECIALLY WITH LITTLE MOMENTS OF SELF PARODY AS IN THE LOVERS' SPACE WALK A BOW TO THE EXTRAORDINARY EXTRATERRESTRIAL OPENING OF THE COLOGNE SECTION OF MR WILSON'S INCOMPLETE MAGNUM OPUS THE CIVIL WARS THAT MUST BE LARGELY LOST ON AN AMERICAN AUDIENCE MR BURROUGHS' TEXT IS CLASSIC PARANOIAC BURROUGHS AND HE DOES HIS BEST TO GET SEX AND DRUGS IN AS OFTEN AS POSSIBLE FORTUNATELY THE SUPERB THALIA ENSEMBLE WHICH PERFORMS IN A COMBINATION OF GERMAN AND GERMANACCENTED ENGLISH WITH WORTHLESS DISTRACTING SUBTITLES UNFORTUNATELY IMPOSED BY BAM ARE VERY FUNNY IN THEIR DEADPAN DELIVERY BUT THE WAITS MUSIC IS SOMETHING ALTOGETHER NEW TO THIS TYPE OF THEATER ONE CAN EASILY DETECT A KURT WEILL INFLUENCE AND ELEMENTS OF THE MUSIC HALL ALONG WITH MR WAITS'S OWN GRUFF MINIMALIST MUSICAL STYLE ALL GROTESQUELY ORCHESTRATED BY GREG COHEN BUT MR WAITS'S OWN DEVIANT PERSONA IS MUCH TOO STRONG EVER TO LET THE SCORE FEEL DERIVATIVE IT CAN NOW BE SAMPLED ON A NEW CD ISLAND RECORDS IN WHICH MR WAITS SINGS THE SONGS HIMSELF WITH A LITTLE HELP FROM MR BURROUGHS IN TWO NUMBERS IN HIS OWN GHOULISH VOICE MR WAITS SEEMS TO BE POPPING UP NEARLY EVERYWHERE THESE DAYS HE CAN CURRENTLY BE SEEN IN THE ROBERT ALTMAN FILM SHORT CUTS AND HE MAKES A STARTLING GUEST APPEARANCE ON THE NEW RECORDING OF GAVIN BRYARS'S JESUS' BLOOD NEVER FAILED ME YET POINT MUSIC AN ALMOST 20YEAROLD BRITISH AVANTGARDE WORK IT IS A 75MINUTE TRANCE COMPOSITION CONSISTING OF ENDLESS TAPELOOP REPETITIONS OF A TRAMP'S LITANY UNDERSCORED BY MR BRYARS'S LUSH ORCHESTRATIKNS MR WAITS TAKES OVER FROM THE TRAMP WELL INTO THE PROCEEDINGS ADDING JUST THE TOUCH OF IRASCIBLE GRITTY GLAMOUR TO MAKE THE DISC AN UNLIKELY CROSSOVER HIT IF HE KEEPS IT UP MR WAITS COULD END UP GIVING AVANTGARDE SLUMMING A GOOD NAME AND THE AVANTGARDE A BIG NEW AUDIENCE SEE RELATED ARTICLE LEISURE & ARTS OPERA AND IN FRANCE WSJ DEC 1 1993 9312010006 931201 NORTHWEST AIR IS SET TO MAKE PUBLIC OFFERING AMOUNT OF STOCK FOR SALE IS NOT YET DETERMINED SEC FILING IS EXPECTED BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES THE NATION'S FOURTHLARGEST AIRLINE PLANS TO GO PUBLIC SOON THE COMPANY WHICH WAS TAKEN PRIVATE IN 1989 IN A 365 BILLION LEVERAGED BUYOUT PLANS TO FILE A PROSPECTUS WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING IN A COUPLE OF WEEKS ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY'S PLANS THEY SAID THE SIZE OF THE OFFERING HASN'T YET BEEN DETERMINED BUT THE COMPANY HAS SAID IT WANTED TO SELL ABOUT 500 MILLION IN NEW EQUITY SOMETIME NEXT YEAR AS PART OF A RESTRUCTURING PLAN THAT NARROWLY AVERTED A BANKRUPTCY LAW FILING OVER THE SUMMER THE ST PAUL MINN COMPANY IS REQUIRED TO RAISE THAT AMOUNT IN NEW CAPITAL BY JUNE 1996 OFFICIALS AT NORTHWEST A UNIT OF CLOSELY HELD WINGS HOLDINGS INC DECLINED TO COMMENT SOME AIRLINE ANALYSTS HAVE SAID THE TIME COULD BE RIPE FOR A NORTHWEST OFFERING DESPITE THE COMPANY'S HEAVY LONGTERM DEBT LOAD OF ABOUT 36 BILLION THE CARRIER RECENTLY REPORTED A BIG THIRDQUARTER PROFIT OF 1123 MILLION ITS FIRST QUARTERLY NET INCOME IN TWO YEARS MOREOVER AT A TIME WHEN MOST OTHER MAJOR AIRLINES ARE TRYING TO NEGOTIATE WAGE CONCESSIONS FROM EMPLOYEES NORTHWEST HAS ALREADY DONE SO BY CONVINCING EMPLOYEES TO TRADE 886 MILLION IN WAGE AND BENEFIT CONCESSIONS OVER THREE YEARS FOR UP TO 375 OF THE COMPANY NORTHWEST ESCAPED FILING FOR BANKRUPTCYCOURT PROTECTION LAST JULY AS IT HAD PLANNED IN A RECENT REPORT RAYMOND NEIDL A FURMAN SELZ ANALYST SAID THE COMPANY'S RESTRUCTURING WHICH ALSO INCLUDED CONCESSIONS FROM LENDERS IN THE FORM OF DEFERRED DEBT PAYMENTS MIGHT POSITION THE COMPANY FOR A LARGE PUBLIC OFFERING THE REPORT CHARACTERIZED NORTHWEST'S FINANCIAL PROGRESS AS BETTER THAN AVERAGE BUT NOTED THAT THE AIRLINE SUFFERS FROM A RELATIVELY WEAK DOMESTIC ROUTE NETWORK AND STILL FACES RISKS IN A VOLATILE INDUSTRY AS A RESULT OF THE RESTRUCTURING THE COMPANY'S COMMONSTOCK OWNERSHIP WILL CHANGE EMPLOYEES WHO HAVE YET TO EXERCISE THEIR STOCK CONVERSION RIGHTS COULD OWN AS MUCH AS 375 OF THE COMPANY THAT WOULD REDUCE THE HOLDINGS OF THE LARGEST INVESTORS COCHAIRMEN ALFRED CHECCHI AND GARY WILSON TO AROUND 27 FROM NEARLY 44 CURRENTLY THE STAKES HELD BY EMPLOYEES AND BY MR CHECCHI AND MR WILSON BOTH OF WHOM LED THE 1989 BUYOUT WOULD BE REDUCED IF THE PUBLIC STOCK OFFERING IS SUCCESSFUL 9312010005 931201 TEXAS JOURNAL CHAMBER OF COMMERCE SEEKS FRESH START BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL CAN BRUCE GIBSON RESCUE THE TEXAS CHAMBER OF COMMERCE THE BUSINESS EXECUTIVES WHO SIT ON THE CHAMBER'S BOARD CERTAINLY HOPE SO LAST MONTH THEY LURED MR GIBSON AWAY FROM HIS 90000AYEAR JOB AS EXECUTIVE ASSISTANT TO LT GOV BOB BULLOCK TO BECOME PRESIDENT OF THE LOBBYING ORGANIZATION CHAMBER MEMBERS ARE COUNTING ON MR GIBSON WHO SPENT SIX TERMS IN THE TEXAS HOUSE AND TWO YEARS AS MR BULLOCK'S TOP STAFFER TO INCREASE THE GROUP'S LEGISLATIVE CLOUT ESPECIALLY IN COMING BATTLES OVER WORKERS COMPENSATION AND TAX POLICY MORE IMPORTANT THEY HOPE HE CAN REVERSE A RECENT DROP IN FUND RAISING AND BREATHE NEW LIFE INTO AN ORGANIZATION THEY SAY SHOULD BE THE STATE'S LEADING BUSINESS GROUP PEOPLE WILL BELIEVE IN THE STATE CHAMBER BECAUSE THEY BELIEVE IN THE LOCAL CHAMBERS MR GIBSON SAYS WHAT THE CHAMBER NEEDS IS TO BETTER IDENTIFY ITS ROLE IN THE PUBLICPOLICY ARENA MR GIBSON A 40YEAROLD WHO ALSO HAS A DAIRY FARM HAS HIS WORK CUT OUT FOR HIM THE CHAMBER'S REVENUE HAS PLUNGED NEARLY 30 THIS YEAR LARGELY BECAUSE THE ORGANIZATION SWITCHED FROM ITS TRADITIONAL MEMBERSHIP BLITZ IN WHICH A BIG TEXAS COMPANY LEANED ON OTHER BUSINESSES TO JOIN TO AN INTERNAL FUNDRAISING STAFF AND THOUGH MANY OF THE ITEMS ON ITS LEGISLATIVE AGENDA PASSED THIS YEAR NOTABLY A TORTREFORM MEASURE AND A MOVE TOWARD TRUCKING DEREGULATION THE CHAMBER MAINLY PLAYED A SUPPORT ROLE FOR OTHER BUSINESS GROUPS AND PRESSED NO SIGNIFICANT INITIATIVES OF ITS OWN IT'S HAD A HARD TIME FINDING ITS NICHE SAYS GEORGE CHRISTIAN AN AUSTIN POLITICAL CONSULTANT AND A FOUNDER OF THE TEXAS ASSOCIATION OF TAXPAYERS ANOTHER STATEWIDE BUSINESS GROUP THE TEXAS CHAMBER HAS SOME CLEAR STRENGTHS FORMED IN 1988 OUT OF SEVERAL REGIONAL CHAMBERS IT HAS IN ITS MEMBERSHIP 2700 BUSINESSES AND 300 LOCAL CHAMBERS GIVING IT AN UNMATCHED GRASSROOTS NETWORK IN LARGE AND SMALL CITIES IT DRAWS LEADERSHIP FROM AMONG THE STATE'S TOP EXECUTIVES NEXT YEAR'S CHAIRMAN ROBERT LANE IS PRESIDENT OF NATIONSBANK OF TEXAS AND ITS BROADBASED MEMBERSHIP REFLECTS THE DIVERSITY OF TEXAS BUSINESS FROM ITS INCEPTION MANY MEMBERS ENVISIONED THE STATE CHAMBER AS A SINGLE STRONG VOICE FOR BUSINESS THAT COULD RISE ABOVE THE DIN OF SEPARATE BUSINESS LOBBIES IN AUSTIN SCORES OF SINGLEINDUSTRY GROUPS FROM THE TEXAS AUTOMOBILE DEALERS ASSOCIATION TO THE TEXAS TANK TRUCKERS ASSOCIATION TRY TO MAKE THEIR VOICES HEARD IN THE CAPITAL IN ADDITION A HANDFUL OF SINGLEISSUE GROUPS THE TEXAS CIVIL JUSTICE LEAGUE FOR ONE REPRESENT A RANGE OF COMPANIES AS DO THE CHAMBER AND THE TEXAS ASSOCIATION OF BUSINESS IN A COMPETITIVE WORLD ALL OF US REALIZE THERE HAS GOT TO BE A WAY TO INCREASE OUR EFFECTIVENESS AND REDUCE OUR COSTS SAYS DON CARLTON CHAIRMAN AND CHIEF EXECUTIVE OF RADIAN CORP AN ENVIRONMENTALCONSULTING FIRM BASED IN AUSTIN BUSINESSPEOPLE MAY AGREE ON THAT GOAL BUT THEIR FREQUENT DISAGREEMENTS ON SPECIFIC ISSUES HAVE MADE IT HARD TO ACHIEVE TAKE TAX POLICY THE TEXAS ASSOCIATION OF TAXPAYERS REPRESENTS MAINLY BIG CORPORATIONS HIT HARDEST BY THE STATE'S RELIANCE ON PROPERTY AND FRANCHISE TAXES THE GROUP HAS FAVORED A PERSONAL INCOME TAX BUT THE IDEA IS UNPOPULAR AMONG MOST SMALL AND SOME LARGE COMPANIES AND THE CHAMBER CAN'T REACH A CONSENSUS ON THE ISSUE MR GIBSON INDICATES THAT HE WILL TRY TO MINIMIZE THIS PROBLEM BY FINDING THE ISSUES THAT DEFINITELY BELONG TO THE CHAMBER HE SEES THE GROUP TAKING A LEAD ROLE ON CENTRAL WORKFORCE ISSUES SUCH AS EDUCATION AND ON OTHER SUBJECTS THAT AFFECT BUSINESS BROADLY INCLUDING HEALTH CARE THE ROLE OF THE CHAMBER IS GOING TO HAVE TO DEVELOP OVER TIME HE SAYS BEFORE HE DOES ANYTHING ELSE MR GIBSON MUST PUT THE GROUP ON A SOLID FINANCIAL FOOTING REVENUE DERIVED MAINLY FROM MEMBERSHIP DUES PLUNGED LAST YEAR FORCING THE ORGANIZATION TO SLASH ITS 1993 BUDGET TO 800000 FROM 11 MILLION LAST YEAR AND TO LAY OFF SEVEN OF 12 STAFFERS CHAMBER OFFICIALS EXPECT NEXT YEAR'S REVENUES TO RETURN TO 1992 LEVELS MR GIBSON'S MAIN JOB THOUGH WILL BE TO HEIGHTEN THE CHAMBER'S INFLUENCE IN AUSTIN THE GROUP HAS GRADUALLY INCREASED ITS PRESENCE IN THE LEGISLATURE BUT HAS RARELY ASSUMED A LEADING ROLE IN PUSHING LEGISLATION THE CHAMBER DIDN'T MAKE THE LIST OF THE 10 MOST EFFECTIVE TEXAS LOBBYING ORGANIZATIONS IN A POLL BY THE QUORUM REPORT AN AUSTIN NEWSLETTER THE TEXAS ASSOCIATION OF BUSINESS THE CHAMBER'S RIVAL GROUP RANKED SEVENTH WE'VE REALLY BEEN A LITTLE LIGHT IN PEOPLE WHO HAVE BRUCE'S EXPERIENCE SAYS ALAN SHIVERS JR THE CHAMBER'S CURRENT CHAIRMAN I THINK NOW YOU'LL SEE US TAKING MORE OF A PROACTIVE ROLE AS A LEGISLATOR MR GIBSON WAS A SKILLED BACKROOM NEGOTIATOR HE WAS A COAUTHOR OF THE 1989 WORKERS COMPENSATION REVISIONS AND HELPED REVIVE THE FINAL BILL AFTER IT APPEARED DEAD IN MR BULLOCK'S OFFICE HE CRAFTED THE CONSTITUTIONAL AMENDMENT APPROVED LAST MONTH BARRING A STATE INCOME TAX WITHOUT VOTER APPROVAL MR GIBSON PLANS TO BOLSTER THE CHAMBER'S PUBLICPOLICY AND RESEARCH STAFF THE GOAL TO GIVE THE GROUP AMMUNITION TO TAKE THE LEAD ON SUCH IMPORTANT ISSUES AS WORKERS COMPENSATION HE ALSO PLANS TO DRAW MORE EXTENSIVELY ON THE 200000 MEMBERS OF LOCAL CHAMBERS AROUND THE STATE TO GIVE THE GROUP MORE CLOUT IN AUSTIN AND HE PLANS TO PREPARE THE CHAMBER TO WEIGH IN WHEN THE LEGISLATURE ADDRESSES THE STATE'S ROLE IN PRESIDENT CLINTON'S PROPOSED HEALTHCARE OVERHAUL THERE'S NOT ANOTHER ORGANIZATION THAT'S BETTER POSITIONED TO WORK ON THE IMPLEMENTATION OF THE CLINTON HEALTHCARE PLAN MR GIBSON SAYS 9312010002 931201 WHO'S NEWS BRISTOLMYERS NAMES EXECUTIVES TO LEAD STRATEGY NEW DIVISION NEW YORK BRISTOLMYERS SQUIBB CO NAMED A TOP SENIOR EXECUTIVE TO DIRECT PRODUCTIVITY INITIATIVES AND ANOTHER TOP EXECUTIVE TO LEAD A NEWLY COMBINED NUTRITION AND HEALTHCARE BUSINESS EFFECTIVE JAN 1 WILLIAM F FLATLEY 52 YEARS OLD SENIOR VICE PRESIDENT WILL TAKE CHARGE OF THE COMPANY'S BUSINESS STRATEGY WHICH WILL INCLUDE PRODUCTIVITY PLANS AS WELL AS A RESTRUCTURING OF THE COMPANY'S CORPORATE STAFF THE COMPANY DECLINED TO ELABORATE ON A POSSIBLE STAFF RESTRUCTURING OR ON THE SCOPE OF MR FLATLEY'S NEW ASSIGNMENT IN AN INTERNAL BULLETIN CHARLES A HEIMBOLD JR BRISTOLMYERS'S 60YEAROLD PRESIDENT SAID THE COMPLEXITY AND MAGNITUDE OF THE FORCES AFFECTING THE COMPANY CAUSED HIM TO ASSIGN NEW DUTIES TO MR FLATLEY HE WILL RETAIN HIS RESPONSIBILITY FOR CORPORATE HOSPITAL ACCOUNTS AS PREVIOUSLY REPORTED MR HEIMBOLD WILL BECOME CHIEF EXECUTIVE OFFICER ON JAN 1 SUCCEEDING MICHAEL GELB 69 MR GELB WILL REMAIN CHAIRMAN OF THE COMPANY THE PHARMACEUTICAL HEALTHCARE AND CONSUMERPRODUCTS CONCERN ALSO SAID MICHAEL E AUTERA 55 WILL HEAD THE NEW NUTRITIONAL AND HEALTHCARE UNIT WHICH CONSISTS OF MEDICAL DEVICES WOUNDCARE PRODUCTS SURGICAL INSTRUMENTS LEASTINVASIVE SURGERY PRODUCTS AND NUTRITIONAL PRODUCTS SUCH AS INFANT FORMULA THE COMPANY DECLINED TO OFFER A REVENUE FIGURE FOR THE NEW GROUP ACCORDING TO THE COMPANY'S ANNUAL REPORT SEGMENTS IN THE NEW DIVISION HAD LESS THAN 3 BILLION IN REVENUE IN 1992 COMPARED WITH 1116 BILLION IN REVENUE FOR THE ENTIRE COMPANY MR AUTERA WILL RETAIN HIS CURRENT TITLE OF CHIEF FINANCIAL OFFICER UNTIL A SUCCESSOR IS NAMED BOTH MR AUTERA AND MR FLATLEY WILL REPORT TO MR HEIBOLD BRISTOLMYERS SQUIBB CO'S CHAIRMAN IS RICHARD L GELB AN ARTICLE YESTERDAY ABOUT MANAGEMENT CHANGES AT THE COMPANY REFERRED TO HIM AS MICHAEL GELB 9312010001 931201 FOUR SEASONS HOTELS PLANS TO TRIM DEBT WITH PROPERTY SALE TORONTO FOUR SEASONS HOTELS INC SAID IT HOPES TO RAISE UP TO 120 MILLION CANADIAN DOLLARS US899 MILLION FROM THE SALE OF SIX HOTELS TO GENERATE CASH TO APPLY AGAINST ITS GROWING DEBT THE TORONTOBASED HOTEL COMPANY SAID IT WILL SEEK BUYERS FOR HOTELS IN LONDON SAN FRANCISCO VANCOUVER BRITISH COLUMBIA AUSTIN TEXAS AND SANTA BARBARA CALIF AS WELL AS ONE OF ITS TWO TORONTO PROPERTIES IN MOST CASES WE'D PREFER TO RETAIN THE MANAGEMENT OF THE PROPERTIES PARTICULARLY IN LONDON SAID ROGER GARLAND EXECUTIVE VICE PRESIDENT OF FOUR SEASONS IN RECENT YEARS THE COMPANY'S DEBT LOAD HAS RISEN STEADILY MR GARLAND SAID DUE IN PART TO ITS ACQUISITION LAST YEAR OF REGENT INTERNATIONAL HOTELS INC FROM A UNIT OF EIE INTERNATIONAL CORP OF JAPAN THE COMPANY ALSO HAS SPENT MONEY AT SOME PROPERTIES TO FINANCE IMPROVEMENTS AND TO COVER SOME OPERATING EXPENSES MR GARLAND SAID IT NOW HAS C360 MILLION OF DEBT OUTSTANDING TWO OF THE HOTELS WERE SOLD PREVIOUSLY BUT FOUR SEASONS REGAINED OWNERSHIP WHEN THE BUYERS DEFAULTED ON CERTAIN FINANCIAL OBLIGATIONS TWO OTHERS THE SANTA BARBARA AND AUSTIN HOTELS WERE PURCHASED WITH THE INTENT OF RESELLING THEM AND CONTINUING TO MANAGE THEM MR GARLAND SAID THE SALES LIKELY WILL TAKE PLACE OVER THE THE NEXT YEAR FOUR SEASONS SAID AND MIGHT RESULT IN EARNINGS CHARGES OR GAINS DEPENDING ON SELLING PRICES THE COMPANY ISN'T TAKING ANY KIND OF PROVISION AT THIS TIME MR GARLAND SAID FOUR SEASONS OPERATES 26 FOUR SEASONS PROPERTIES AND 11 REGENT HOTELS PRIMARILY IN NORTH AMERICA EUROPE AND ASIA 9312010109 931108 AFTER NICOTINE PATCHES SPRAYS PILLS INHALERS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL THE CIGARETTE INDUSTRY IS UNDER SIEGE BATTLING HIGHER TAXES AND GROWING RESTRICTIONS ON SMOKING BUT A LARGER THREAT TO TOBACCO COMPANIES MAY BE SMOLDERING IN THE NATION'S RESEARCH LABORATORIES ALTHOUGH MOST SMOKERS CONSIDER NICOTINE PATCHES A FLOP THE NEXT GENERATION OF SMOKINGCESSATION PRODUCTS IS EXPECTED TO BE FAR MORE EFFECTIVE MARION MERRELL DOW INC RECENTLY DOUBLED THE DOSE OF NICOTINE IN ITS NICORETTE GUM PATCH MAKERS ARE CONSIDERING BOOSTING THE NICOTINE IN PATCHES AS WELL AND RESEARCHERS ARE DEVELOPING INHALERS AND NASAL SPRAYS THAT MAY DELIVER NICOTINE FASTER AND MORE EFFECTIVELY NICOTINE ITSELF IS NOT CONSIDERED A HEALTH THREAT IN ADDITION SOME SCIENTISTS ARE EXPLORING THE USE OF DRUGS TO PREVENT THE CRANKINESS WEIGHT GAIN AND SLEEP DISORDERS THAT OFTEN PLAGUE SMOKERS TRYING TO QUIT THIS COULD BE THE GREATEST THREAT THE CIGARETTE INDUSTRY EVER HAD SAYS JEFFREY HARRIS A PROFESSOR AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND AN EXPERT ON SMOKING OF THE FLURRY OF SMOKINGCESSATION DEVICES BEING DEVELOPED ADDS DRUG ANALYST HEMANT K SHAH THE MARKET IS HUGE HIGHLY UNSATISFIED AND EAGER TO TRY JUST ABOUT ANYTHING THAT MAY WORK DESPITE CIGARETTEINDUSTRY ADVERTISING CAMPAIGNS ABOUT FREEDOM OF CHOICE MANY SMOKERS ARE DYING TO QUIT SMOKING WILL KILL ME EVENTUALLY SAYS ELLEN GALLAGHER A 41YEAROLD ACCOUNTANT WHO HAS TRIED TO QUIT SMOKING A DOZEN TIMES SINCE SHE BEGAN AT AGE 14 THE NEED TO SMOKE IS TODAY SHE EXPLAINS THE HEALTH THREAT IS OUT THERE 10 OR 20 YEARS AWAY MS GALLAGHER STILL INTENDS TO STOP MAYBE TOMORROW SHE SAYS IN ANY GIVEN YEAR ABOUT 20 OF THE 50 MILLION SMOKERS IN THE US ATTEMPT TO QUIT ACCORDING TO MARION MERRELL DOW THE MAJORITY OF SMOKERS PLAN TO QUIT WITHIN TWO YEARS BUT ONLY 6 OF SMOKERS ARE SUCCESSFUL WHEN THEY QUIT COLD TURKEY AND IT TAKES MOST SMOKERS HALF A DOZEN TRIES GIVEN THE HUGE DIFFICULTY OF GIVING UP CIGARETTES SMOKERS RUSHED TO NICOTINE PATCHES WHEN THEY WERE INTRODUCED IN LATE 1991 ALMOST EVERYBODY I KNOW THAT SMOKES WENT OUT AND GOT ONE SAYS MS GALLAGHER WHO TRIED THE PATCH SEVERAL TIMES AND PLANS TO GIVE IT ANOTHER SHOT MARKETERS STOKED SMOKERS' HOPES WITH AN UNPRECEDENTED LEVEL OF ADVERTISING FOR A PRESCRIPTION DRUG BUT THE ADS CAME UNDER FIRE FROM REGULATORS AND SEVERAL COMPANIES HAD TO MODIFY THEIR CLAIMS THEN LAST YEAR A MASSACHUSETTS HOSPITAL SAID IT TREATED FIVE HEARTATTACK VICTIMS WHO HAD BEEN SMOKING WHILE USING PATCHES ALTHOUGH PATCH MAKERS INSIST NO SCIENTIFIC EVIDENCE LINKS PATCHES SMOKING AND HEART ATTACKS THE REPORT MADE SOME DOCTORS LEERY ABOUT THE TREATMENT ULTIMATELY MANY SMOKERS FOUND THAT THE PATCH WHICH RELEASES A CONSTANT LOWLEVEL STREAM OF NICOTINE INTO THE BLOODSTREAM DIDN'T SUPPLY A POWERFUL ENOUGH JOLT TO OVERCOME THEIR NEED TO SMOKE AFTER A PERSON TAKES A DRAG ON A CIGARETTE A RUSH OF NICOTINE REACHES THE BRAIN IN SEVEN SECONDS FASTER THAN INJECTING NICOTINE DIRECTLY INTO A VEIN PATCHES TAKE NEARLY FOUR HOURS TO REACH PEAK STRENGTH PATCH SALES THIS YEAR ARE EXPECTED TO FALL TO 250 MILLION FROM 650 MILLION IN 1992 MR SHAH SAYS WITH LARGE INVENTORIES AND RAMPANT DISCOUNTING HE EXPECTS 1994 SALES TO FALL BELOW 175 MILLION BUT HAVING UNLEASHED THE PENTUP DEMAND FOR SMOKINGCESSATION PRODUCTS PATCH MARKETERS ARE TRYING TO MAKE THE TREATMENT MORE EFFECTIVE SMOKERS USING THE PATCHES CURRENTLY HAVE A SUCCESS RATE OF 20 TO 25 ACCORDING TO MARION MERRELL DOW SOME COMPANIES MAY SEEK FOOD AND DRUG ADMINISTRATION APPROVAL TO DOUBLE THE NICOTINE IN PATCHES TO 42 MILLIGRAMS THE SAME AMOUNT IN A PACK OF CIGARETTES MARION IS ALSO CONSIDERING SEEKING FDA CLEARANCE TO MARKET THE PATCHES WITHOUT A PRESCRIPTION BUT ANALYSTS SAY APPROVAL IS UNLIKELY BECAUSE OF THE POSSIBLE HEARTATTACK CONNECTION IN AN ACKNOWLEDGEMENT THAT NICOTINE REPLACEMENTS HAVE BEEN TOO WEAK MARION RECENTLY INTRODUCED A FOURMILLIGRAM GUM DOUBLE THE STRENGTH OF ITS PREVIOUS OFFERING IN ANOTHER ATTEMPT TO REJUVENATE THE MARKET MARION PLANS TO SEEK FDA APPROVAL TO MARKET ITS GUM WITHOUT A PRESCRIPTION ANALYSTS ESTIMATE THAT SUCH EASY ACCESS COULD EASILY TRIPLE THE 66 MILLION MARKET FOR THE GUM WHICH WAS INTRODUCED IN 1984 AND HAS A SLIGHTLY HIGHER SUCCESS RATE THAN PATCHES DJ TICE A WRITER IN ST PAUL MINN WHO HAS SMOKED A PACK A DAY FOR 22 YEARS TRIED THE GUM SEVERAL TIMES AND DOESN'T THINK STEPPING UP THE NICOTINE COUNT IS THE ANSWER WE'LL HAVE A VAST POPULATION OF GUM ADDICTS HE SAYS HE IS INTRIGUED BY REPORTS THAT RESEARCHERS IN EUROPE ARE EXPERIMENTING WITH A NICOTINELACED TOOTHPICK MY HABIT IS REAL POWERFULLY ASSOCIATED WITH HAVING SOMETHING TO DO WITH MY MOUTH AND HANDS HE SAYS THE INHALERS AND SPRAYS UNDER DEVELOPMENT ADDRESS ONE OF THE PATCHES' SHORTCOMINGS BY GETTING NICOTINE INTO THE SYSTEM FASTER WHEN A SMOKER CRAVES THAT FIRST CIGARETTE IN THE MORNING A QUICK SHOT FROM AN INHALER COULD STYMIE THE URGE IN A BRITISH STUDY 26 OF SMOKERS USING A NASAL SPRAY TO ADMINISTER NICOTINE QUIT SMOKING BUT SUCH DEVICES ARE STILL SEVERAL YEARS AWAY FROM COMMERCIAL INTRODUCTION AND RESEARCHERS HOPE TO INCREASE THE SUCCESS RATE SOME RESEARCHERS ARE EXPLORING SIDESTEPPING NICOTINE PRODUCTS AND TRYING INSTEAD TO ALLEVIATE THE NEGATIVE ASPECTS OF NICOTINE WITHDRAWAL A HUSBAND AND WIFE TEAM AT MIT FOR INSTANCE IS RESEARCHING USING AN ANTIOBESITY DRUG TO HELP SMOKERS QUIT IN THE NOT TOO DISTANT FUTURE I BELIEVE A MEDICATION WILL BE AVAILABLE THAT HELPS PEOPLE TO STOP SMOKING BY BLOCKING THE MOOD CHANGES AND THE WEIGHT GAIN THAT NICOTINE WITHDRAWAL OFTEN CAUSES SAYS RICHARD WURTMAN A PROFESSOR OF NEUROSCIENCE AT MIT DR WURTMAN DEVELOPED DEXFENFLURAMINE AN ANTIOBESITY DRUG WIDELY USED IN EUROPE FEAR OF PUTTING ON POUNDS IS A MAJOR WORRY FOR PEOPLE CONSIDERING QUITTING SMOKING AND THE MAIN REASON THAT MANY WOMEN GO BACK TO SMOKING DR WURTMAN SAYS A RECENT THREEMONTH STUDY SHOWED THAT A COMBINATION OF DEXFENFLURAMINE AND COUNSELING HELPED WOMEN QUIT INTERNEURON PHARMACEUTICALS INC IN LEXINGTON MASS HAS SOUGHT APPROVAL TO SELL DEXFENFLURAMINE IN THE US ALTHOUGH THE FDA IS REVIEWING THE DRUG'S SUITABILITY AS AN ANTIOBESITY TREATMENT DOCTORS ARE GENERALLY ABLE TO PRESCRIBE AN APPROVED DRUG FOR OTHER USES I WOULD FIND THAT APPEALING SAYS JOHN BRIGGS A HAIRSALON COMPANY EXECUTIVE WHO HAS GAINED 53 POUNDS SINCE HE QUIT SMOKING IN MAY I'VE NEVER DONE ANYTHING IN MODERATION SAYS THE FORMER THREEPACKADAY SMOKER SOME SMOKINGCESSATION EXPERTS CAUTION AGAINST PUTTING TOO MUCH FAITH IN MEDICATION SAUL SCHIFFMAN PROFESSOR OF PSYCHOLOGY AT THE UNIVERSITY OF PITTSBURGH SAYS HE DOUBTS VERY MUCH THAT EVEN A PILL WILL WORK WITHOUT SIGNIFICANT EFFORT AND COMMITMENT FROM THE SMOKER INDEED MANY SMOKERS ARE LESS CONCERNED ABOUT FINDING A WAY TO REPLACE NICOTINE THAN FINDING A WAY TO BREAK THE MANY SMALL PLEASURABLE HABITS THAT ARE ASSOCIATED WITH SMOKING WHAT I MISS MOST IS HAVING THE DARN THING IN MY HAND SAYS LUIS DE OCEJO A PACKADAY SMOKER FOR THE PAST 26 YEARS IT'S ALMOST AN EXTENSION OF MYSELF SEE RELATED LETTER LETTERS TO THE EDITOR NICOTINE PATCH HELPS FIGHT AGAINST ADDICTION WSJ DEC 1 1993 9311080118 YY93 MM12 9312010097 931111 FRENCH INSIDERS NOW AREN'T SO KEEN ABOUT EATING INNARDS OFFAL FROM BRAINS TO TRIPE IS IN DECLINE AS PRICES RISE AND MCDONALD'S BECKONS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS ON THE LUNCH MENU TODAY ARE CURRIED LAMB'S BRAINS AND BLANCHED PIG'S INTESTINES FOLLOWED BY THE MAIN COURSE THE STOMACH OF A COW BOILED WITH ITS HOOFS AND GARNISHED WITH CARROTS NOT HUNGRY NEITHER IT SEEMS ARE THE FRENCH AND THAT IS A RECENT DEVELOPMENT SOME ARE FINDING HARD TO SWALLOW IT WAS THE UNSQUEAMISH FRENCH WHO LONG AGO PERFECTED THE ART OF TURNING EVERY LAST PART OF AN ANIMAL INTO A DELECTATION FRICASSEE DE CERVELLE D'AGNEAU LAMB'S BRAINS AND TRIPES A LA MODE DE CAEN COW'S STOMACH GARNISHED WITH CARROTS ARE STANDARD FARE SOME CHEFS STILL SHOW OFF WITH INNARDS SERVING UP SUCH NEW COMBINATIONS AS GRILLED SWEETBREADS SKEWERED WITH LICORICE STICKS BUT SALES OF SWEETBREADS THE THYMUS GLAND TROTTERS BRAINS HEARTS TONGUES KIDNEYS AND TRIPE NOT TO MENTION TESTICLES ARE PLUNGING DOWN BY ALMOST ONEFIFTH IN THE PAST THREE YEARS AND THE NUMBER OF STORES SPECIALIZING IN OFFAL IS ALSO DWINDLING SO THE FRENCH TRIPE CONFEDERATION A TRADE GROUP HAS DECIDED TO TAKE THE OFFENSIVE POOLING ITS SCANT RESOURCES TO LAUNCH A PUBLICITY CAMPAIGN THE MOST EFFECTIVE WAY TO CONVINCE PEOPLE THAT OFFAL ISN'T AWFUL IT RECKONS IS BY USING SOME TASTEFUL ROMANCE WHICH IS WHY BILLBOARDS ALL OVER THE PARIS AREA HAVE RECENTLY FEATURED A HANDSOME YOUNG COUPLE IN A TIGHT EMBRACE WHAT IS IT ABOUT ME THAT SEDUCED YOU THE MAN WHISPERS IN HIS COMPANION'S EAR MY GUTS OR MY VEALHEADEDNESS HER PASSIONATE ANSWER YOUR HEART WE COULDN'T JUST SHOW A PICTURE OF A HEART OR A LIVER SO WE CHOSE SOMETHING HUMOROUS EXPLAINS GERARD CATHELIN THE CONFEDERATION PRESIDENT AND A THIRDGENERATION TRIPE WHOLESALER WHO ADMITS THE ASSOCIATION HAD TO DO GYMNASTICS TO ATTRACT PEOPLE TO PRODUCTS THAT DON'T LOOK TOO APPETIZING THE TEXT OF THE ADS DOESN'T MAKE MUCH SENSE IN FRENCH EITHER THE 400000 AD CAMPAIGN HAS BEEN MAINLY AIMED AT WOMEN IN THEIR 20S AND 30S WHO SURVEYS SHOW ARE THE LEAST INCLINED TO BUY OFFAL THE ASSOCIATION IS ALSO TRYING TO ATTRACT SCHOOLCHILDREN CONVINCED THAT THEY WOULD START EATING THEIR TRIPE IF ONLY THEY KNEW MORE ABOUT IT CHILDREN CAN WRITE IN FOR A COMIC BOOK THAT DEPICTS THE HIGH JINKS OF AN OFFALLOVING YOUNGSTER JULIEN IN ONE ADVENTURE THE BOY IS SHRUNK BY A MACHINE AND TAKES A RIDE INTO THE BOWELS OF A CALF AFTER SAILING IN A RAFT THROUGH THE BEAST'S STOMACH AND PAST ITS LUNGS THE STORY ENDS WITH JULIEN TUCKING INTO A HEARTY PLATE OF SWEETBREADS IT'S SO GOOD EXCLAIMS THE YOUNG HERO WITH A BROAD GRIN YOU DON'T FORGET A MEAL LIKE THAT THEN THERE IS THE CARD GAME FEATURING MR AND MRS TROTTER AND THEIR TWO KIDS ALONG WITH GRANDPA AND GRANDMA TROTTER WHO CAN BE SWAPPED FOR MEMBERS OF THE FOUR OTHER HAPPY OFFAL FAMILIES THE BRAINS THE HEARTS THE KIDNEYS AND THE LIVERS RECIPES ARE INCLUDED WITH THE PACKS OF CARDS AND FOR THE REFRIGERATOR DOOR MAGNETS FEATURING CARTOONISH DEPICTIONS OF VITAL ORGANS THIS HAS NOTHING TO DO WITH A BLOOD PUMP SAYS MR CATHELIN PICKING UP THE MAGNET OF A SMILING RED HEART BUT SOME PROMOTIONAL IDEAS WERE TOO MUCH EVEN FOR THE ASSOCIATION TO STOMACH IT REJECTED ONE PROPOSAL FOR INSTANCE FOR A POSTER SHOWING A SCANTILY DRESSED WOMAN EXCLAIMING IT TAKES GUTS TO EAT GUTS THE CAMPAIGN HAS CERTAINLY GIVEN PEOPLE FOOD FOR THOUGHT USING TERMS OF LOVE AND TENDERNESS IN CONNECTION WITH TRIPE HAS CREATED A SHOCK EFFECT SAYS CHRISTOPH GUILLAMET OF THE PROCREA AGENCY IN PARIS HE DESIGNED THE AD CAMPAIGN AND SAYS HE IS DELIGHTED WITH THE FREE PUBLICITY THAT IT GENERATED IN THE MEDIA BUT SHOCK MAY NOT BE ENOUGH TO REVERSE THE DOLEFUL TREND IN SALES FRENCH EATING HABITS ARE CHANGING AS FAST FOOD TAKES HOLD THERE ARE 26 MCDONALD'S IN PARIS AND AWARENESS ABOUT HEALTHY EATING RISES LIVER HAS FIVE TIMES THE CHOLESTEROL OF A STEAK BRAINS 60 TIMES FURTHERMORE INNARDS WHICH SOMETIMES TASTE AND SMELL OF WHERE THEY HAVE BEEN ARE AT A DISADVANTAGE BECAUSE THEY NEED SPECIAL PREPARATION MOST BUTCHER SHOPS SPECIALIZING IN OFFAL WILL CHOP HEARTS HEADS AND OTHER UNWIELDY ORGANS INTO MORE EDIBLE PIECES THE DECLINE WAS SPEEDED DRAMATICALLY HOWEVER BY A EUROPEAN COMMUNITY DECISION AT THE END OF THE 1980S TO BAN THE SALE OF MEAT TREATED WITH HORMONES OFFAL IMPORTS FROM THE US WHICH HAD BEEN ONE OF FRANCE'S BIGGEST SUPPLIERS DRIED UP AS SUPPLY FELL PRICES ROSE WIPING OUT ONE OF ITS BIGGEST ATTRACTIONS HISTORICALLY OFFAL FOR THE MOST PART WAS THE FOOD OF THE POOR WHILE THE RICH ATE HIGH ON THE HOG WE USED TO EAT QUITE A LOT BUT IT HAS BECOME MUCH MORE EXPENSIVE SAYS MIGETTE CAPTON STANDING WITH HER HUSBAND MARCEL OUTSIDE A PARIS TRIPE SPECIALIST RUN BY THE MOUTON FAMILY THE CAPTONS ARE IN THEIR 40S AND DON'T NEED AN AD CAMPAIGN TO BE WON OVER I HAVE A SPECIAL WAY OF PREPARING BRAINS BOILING AND THEN SERVING WITH BUTTER AND CAPERS MRS CAPTON SAYS IT'S DELICIOUS SAYS HER HUSBAND AFTER ALL WHY WOULD A FRENCHMAN EAT ANYTHING THAT ISN'T BEHIND THEM ARE A RETIRED COUPLE WHO GLANCE AT THE HEARTS ON DISPLAY IN THE MOUTONS' WINDOW NEXT TO LUMPS OF TRIPE AND A WHOLE OXTONGUE THEN WALK ON BY I USED TO EAT THAT SORT OF THING AS A CHILD BUT NOT TODAY IT'S BAD FOR YOUR KIDNEYS SAYS DENISE BERGERON TOO MUCH CHOLESTEROL NODS HER HUSBAND CHARLES IT'S DISGUSTING SAYS ANOTHER PASSERBY A WOMAN FROM HOLLAND A COUNTRY HARDLY CELEBRATED FOR ITS CUISINE SHE HAS LIVED IN FRANCE FOR 30 YEARS I'VE ALWAYS WONDERED HOW THE FRENCH COULD EAT IT SHE IS DUBIOUS ABOUT THE AD CAMPAIGN YOUNG PEOPLE TODAY DON'T COOK LIKE THEIR MOTHERS' USED TO THEY JUST TAKE PACKETS OUT OF THE FREEZER AND PUT THEM IN THE MICROWAVE SOME NATIONS BESIDES FRANCE DO HAVE A TASTE FOR TRIPE PARTICULARLY SPAIN AND MEXICO HENCE MENUDO THE TRIPE SOUP MEXICANS LOVE THE BRITISH LIKE KIDNEYS IN THEIR MEAT PIES PERUVIANS ENJOY ANTICUCHOS MARINATED GRILLED BEEF HEART SICILIANS ON THE STREETS OF PALERMO CAN GRAB A QUICK SPLEEN SANDWICH ITALIANS IN GENERAL AND EGYPTIANS ARE PARTIAL TO LIVER WHILE THE JAPANESE GO IN FOR INTESTINES CHINESE RESTAURANTS IN NEW YORK SERVE PIGS' EARS BUT IN THE US WHERE IT IS ALSO KNOWN EUPHEMISTICALLY AS VARIETY MEATS MOST OFFAL IS EXPORTED OR PROCESSED INTO SAUSAGE AND LUNCH MEAT OR IT ENDS UP AS PET FOOD ACCORDING TO MARK KLEIN A SPOKESMAN FOR BEEF PACKER EXCEL CORP IN THE US CHITLINS THE SMALL INTESTINES OF PIGS AND LIVER ARE STILL TO BE FOUND ON MANY DINNER TABLES RETAIL SALES OF TRIPE OXTAILS AND KIDNEYS HAVE BEEN GROWING STEADILY IN RECENT YEARS SOME AMERICANS IN FACT MAY HAVE ACQUIRED THE TASTE ON TRIPS TO PARIS BERNARD MARMELS DEPUTY MAITRE D' AT THE PIED DE COCHON RESTAURANT HERE WHICH SERVES ABOUT 25 POUNDS OF TRIPE A DAY SAYS US TOURISTS DO SOMETIMES ORDER PIG'S TROTTERS OR ANDOUILLETTE A SAUSAGE MADE FROM PIG'S STOMACH INTESTINES AND SOMETIMES THROAT BUT THEY ARE OFTEN DISAPPOINTED MR MARMELS ADDS THEY'LL SEND IT BACK AFTER THE FIRST MOUTHFUL AND THEN ORDER A STEAK OF COURSE THEY MIGHT THEN HAVE TO PAY FOR BOTH SEE RELATED LETTER LETTERS TO THE EDITOR I'M EATING WHAT WSJ DEC 1 1993 9311110039 YY93 MM12 9312010037 931119 MARKETING & MEDIA ADVERTISING WANG ADS TOUT SELFDESTRUCTION AS PATH TO REBIRTH REINVENTION BY KEVIN GOLDMAN TWO MONTHS AFTER EMERGING FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION WANG LABORATORIES IS SHOWING THAT THE OLD WANG IS GONE FOREVER IT LITERALLY BLOWS ITSELF UP IN NEW TELEVISION COMMERCIALS THE COMPUTER SOFTWARE COMPANY BASED IN LOWELL MASS IS EXPECTED TO ANNOUNCE TODAY DETAILS OF NEW ADVERTISING FROM ITS LONGTIME BOSTON AGENCY HILL HOLLIDAY CONNORS & COSMOPULOS ACCORDING TO INDUSTRY EXECUTIVES THE ADS TO PREMIERE ON ABC'S MONDAY NIGHT FOOTBALL NEXT WEEK WILL SHOW A COMPANY OFFICE BUILDING TOPPED BY THE OLD WANG LOGO BEING DESTROYED BY EXPLOSIVES AMID THE RUBBLE A SINGLE FLASH OF LIGHT GLOWS AS THE CAMERA SWOOPS DOWN THE LIGHT BECOMES A VIDEO MONITOR THAT LISTS WANG'S NEW BUSINESSES SOFTWARE AND NETWORK INTEGRATION THE VOICEOVER SAYS ON SEPT 21 A NEW WANG SPARKED TO LIFE AND THE COMMERCIAL NOTES THAT A COMPUTER MAGAZINE SURVEY STILL RANKS WANG SOFTWARE NO 1 TRUE INNOVATORS NEVER DIE THE AD CONCLUDES THEY JUST REINVENT THEMSELVES THEN THE NEW WANG LOGO APPEARS SELFDESTRUCTION IS PERHAPS THE ULTIMATE IN SELFDEPRECATING ADVERTISING IT GOES FAR BEYOND THAT OF SAY VOLKSWAGEN IN THE CLASSIC 1960S CAMPAIGN THAT REFERRED TO THE AUTO MAKER'S CLASSIC BEETLE MODEL AS UGLY BUT THIS APPROACH SAY MARKETING EXPERTS MAY BE JUST WHAT WANG NEEDS RESEARCH SHOWS THAT WANG IS PERCEIVED AS A NONPLAYER BECAUSE OF ITS RECENT FINANCIAL DIFFICULTIES NO ONE WAS FOLLOWING THE COMPANY SAYS ONE PERSON WITH KNOWLEDGE OF THE CAMPAIGN THERE'S STILL SOME MARKETABILITY IN THE NAME HOWEVER CONSUMER RESEARCH SHOWS THEY SHOULD CAPITALIZE ON THE FACT THEY ARE A BRIGHT COMPANY SAYS HAL ROSS PRESIDENT OF MAPES & ROSS A MARKETRESEARCH FIRM WANG ISN'T A PLODDING DINOSAUR IT'S GOOD TO SHOW THEY GOT RID OF WHAT WASN'T WORKING BUT PART OF THE COMPANY STILL SURVIVES THE AD IS THE FIRST TELEVISION COMMERCIAL FROM THE ONCE HIGHFLYING COMPANY SINCE IT EMERGED FROM BANKRUPTCY AT ITS PEAK WANG EMPLOYED 32000 AND BOASTED REVENUE OF 3 BILLION THE NUMBER OF EMPLOYEES WAS SINCE SLASHED A HEFTY 81 TO 6000 AND THE COMPANY SAYS IT EXPECTS TO REPORT A PROFIT OF 25 MILLION ON APPROXIMATELY 941 MILLION IN REVENUE FOR THE FISCAL YEAR ENDING NEXT JUNE 30 IN ITS FIRST QUARTER OUT OF BANKRUPTCY WANG REPORTED EARLIER THIS WEEK THAT DESPITE A DECLINE IN REVENUE TO 2109 MILLION IT HAD AN OPERATING PROFIT OF 124 MILLION THE AD CAMPAIGN IS ALSO QUITE MODEST WHILE WANG USED TO SPEND UPWARDS OF 40 MILLION THE INITIAL FIGURE FOR THIS CAMPAIGN IS APPROXIMATELY 2 MILLION ACCORDING TO INDUSTRY OFFICIALS LATE YESTERDAY WANG RELEASED A STATEMENT CONFIRMING DETAILS OF THE NEW CAMPAIGN WANG IS AGGRESSIVELY MARKETING ITS EXTENSIVE EXPERIENCE IN SOFTWARE AND SERVICES SAID JOSEPH M TUCCI CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WANG AND ITS STRONG ALLIANCES WITH SUCH COMPANIES AS HEWLETTPACKARD IBM AND SUN A COMPANY SPOKESMAN SAID THE PURPOSE OF THE AD IS TO SHOW WANG IS BACK IN A DRAMATIC AND MEMORABLE WAY WE'RE TRYING TO REACH PEOPLE WITH THIS SATURATION CAMPAIGN WHO ARE ORDINARILY BUSY ACCORDING TO ADVERTISING OFFICIALS THE COMMERCIAL WILL ALSO BE SEEN ON ABC'S NIGHTLINE AS WELL AS SUNDAY MORNING 60 MINUTES AND LATE SHOW WITH DAVID LETTERMAN ON CBS AND IT WILL BE SEEN THANKSGIVING DAY DURING NBC'S COVERAGE OF THE DALLAS COWBOYSMIAMI DOLPHINS FOOTBALL GAME THE SPOTS WILL HAVE AN INITIAL BRIEF RUN OF ONLY EIGHT DAYS ALTHOUGH THERE ARE DISCUSSIONS ABOUT BROADCASTING THE ADS AGAIN IN THE NEAR FUTURE WANG ACCORDING TO INDUSTRY OFFICIALS HAD TO SUFFER A SHOCKING EXECUTION TO ANNOUNCE IT'S BACK IN BUSINESS IT'S AN ATTENTIONGRABBING APPROACH THAT OTHERS EMERGING FROM CHAPTER 11 HAVE ADOPTED FOR EXAMPLE WHEN CONTINENTAL AIRLINES EMERGED FROM BANKRUPTCYLAW PROTECTION IN APRIL IT USED THE OCCASION AS A REASON TO CELEBRATE THANKS TO YOU WE DID IT SAID THE ADS WHICH SHOWED CONTINENTAL EMPLOYEES JOYFULLY TOSSING THEIR HATS IN THE AIR THE ADS SPECIFICALLY MENTIONED THE AIRLINE'S FINANCIAL SITUATION EMERGING FROM CHAPTER 11 AND INTO THE FUTURE IT TAKES CORPORATE COURAGE TO CARRY THROUGH THE WANG AND CONTINENTAL APPROACH SAYS PETER HARLEMAN EXECUTIVE VICE PRESIDENT OF LANDOR ASSOCIATES A SAN FRANCISCO MARKETINGCONSULTANT FIRM IT IS SHOWING THE PUBLIC THEY'RE NOT GOING TO HIDE OR SUGARCOAT THEIR PROBLEMS HE SAYS THE NEW SPOTS ARE A DRASTIC DEFENSIVE DEPARTURE FROM WANG'S MOST RECENT 1989 TELEVISION CAMPAIGN THAT SLICKLY PRODUCED CAMPAIGN INVOLVED TECHNICAL CONVERSATION BETWEEN COMPUTER PROFESSIONALS THE ADS WERE BOTH PRAISED FOR BREAKING THROUGH THE COMMERCIAL CLUTTER AND CRITCIZED FOR USING YUPPIE COMPUTER TALK WHILE THE TELEVISION ADS WILL HAVE A SHORT INITIAL RUN WANG'S PRINT CAMPAIGN WILL RUN UNTIL AT LEAST THE END OF THE YEAR THOSE ADS ALSO FROM HILL HOLLIDAY TRUMPET HOW IMAGINATION SAVED A BILLIONDOLLAR COMPANY THE TAG LINE IS THE POWER OF IMAGINATION BUT IT'S THE TELEVISION AD THAT WILL COMMAND ATTENTION PREDICTS MR ROSS OF MAPES & ROSS WHO HEARD A DESCRIPTION OF THE SPOT BUT DIDN'T SEE IT THE FINAL VERSION WON'T BE DELIVERED TO THE CLIENT UNTIL LATE SUNDAY WANG IS NAMED AFTER ITS FOUNDER WHO WAS VIEWED AS A GENIUS SAYS MR MAPES THE SPOT IS VERY VISUAL PUT THE NAME AND THE VISUAL TOGETHER AND YOU HAVE AN EFFECTIVE COMMERCIAL NBC SAID IT PLANS TO GIVE ONSCREEN PLUGS TO INTERACTIVE NETWORK INC FLAGGING THE NETWORK'S PLAYALONG PROGRAMMING DURING BROADCASTS OF SHOWS LIKE LA LAW AND NBC NIGHTLY NEWS WITH TOM BROKAW INTERACTIVE NETWORK MOUNTAIN VIEW CALIF OFFERS SUBSCRIBERS IN NORTHERN CALIFORNIA AND CHICAGO SIMULTANEOUS INTERACTIVE OPTIONS DURING SPORTS NEWS ENTERTAINMENT AND GAME SHOWS ON BROADCAST AND CABLE NETWORKS FOR EXAMPLE VIEWERS OF NIGHTLY NEWS CAN PARTICIPATE IN PUBLIC OPINION POLLS LA LAW WATCHERS CAN GUESS THE VERDICT NBC A UNIT OF GENERAL ELECTRIC CO OWNS ABOUT AN 11 STAKE IN INTERACTIVE NETWORK BEGINNING IN THE SECOND HALF OF 1994 NBC PLANS TO AIR THE TAGS WHICH PLUG INTERACTIVE NETWORK BY NAME IN MARKETS WHERE THE SERVICE IS AVAILABLE TOM ROGERS NBC EXECUTIVE VICE PRESIDENT OF CABLE AND NEW MEDIA SAID THE EFFORT IS AIMED AT ACCELERATING THE ADOPTION OF INTERACTIVE NETWORK'S TECHNOLOGY AND PROMPTING CONSUMERS TO THINK OF NBC AS BEING ON THE TECHNOLOGICAL LEADING EDGE AD NOTES FELL 155 IN THE THIRD QUARTER TO 151 BILLION FROM 178 BILLION REFLECTING THE ABSENCE OF SUMMER OLYMPIC REVENUES THIS YEAR ACCORDING TO THE BROADCAST CABLE FINANCIAL MANAGEMENT ASSOCIATION NETWORK REVENUES ROSE IN EVERY CATEGORY EXCEPT SPORTS PROGRAMMING DURING THE THIRD QUARTER TIMES MIRROR CO SAID AD REVENUE AT ITS NEWSPAPER PUBLISHING GROUP FOR THE FIVE WEEKS ENDED OCT 31 ROSE 38 TO 1494 MILLION FROM 144 MILLION A YEAR EARLIER AN ADVERTISING COLUMN ON NOV 19 INCORRECTLY ATTRIBUTED COMMENTS ON THE NEW WANG LABORATORIES INC CAMPAIGN TO PETER HARLEMAN EXECUTIVE VICE PRESIDENT OF LANDOR ASSOCIATES A SAN FRANCISCO MARKETINGCONSULTANT COMPANY THE COMMENTS WERE MADE BY HAL ROSS PRESIDENT OF MAPES & ROSS A MARKETRESEARCH COMPANY 9312010036 931115 ENVIRONMENT CLEAR BENEFITS OF CLEAN AIR ACT COME AT A COST BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WHAT ACCOUNTS FOR A 225 PRICE INCREASE FOR A FORD CAR A THREETOFIVECENTPERGALLON PRICE INCREASE FOR GASOLINE IN CERTAIN CITIES AND A POTENTIAL 1 INCREASE IN THE PRICE OF DRY CLEANING A SUIT AT JULIUS KLEIN CLEANERS IN NEW YORK CITY TODAY MARKS THE THIRD ANNIVERSARY OF PASSAGE OF THE MASSIVE CLEANAIR LAW AND THE AIR BREATHED IN THE US IS SIGNIFICANTLY CLEANER BUT THE AIRPOLLUTION REDUCTIONS HAVE BEEN ACHIEVED MAINLY BY REQUIREMENTS THAT PREDATE THE LAW INCREASINGLY THE CLEAN AIR ACT'S REQUIREMENTS WILL AFFECT THE MANUFACTURE AND MAINTENANCE OF PRODUCTS RANGING FROM REFRIGERATORS TO CARS TO CLOTHING SOMETIMES AT A COST TO CONSUMERS ALAN RAPPAPORT OWNER OF JULIUS KLEIN CLEANERS SAYS A REGULATION STEMMING FROM THE CLEAN AIR ACT MAY REQUIRE HIM TO RAISE HIS 950 BASE PRICE FOR CLEANING A SUIT TO 1050 THAT'S BECAUSE THE RULE ISSUED BY THE ENVIRONMENTAL PROTECTION AGENCY IN SEPTEMBER REQUIRES MANY DRY CLEANERS TO PURCHASE REFRIGERATED CONDENSERS THAT TRAP THE DRYCLEANING SOLVENT PERCHLOROETHYLENE IN ITS VAPOR FORM AND TURN IT INTO A RECYCLABLE LIQUID IT MAY IN THE LONG RUN BE COSTEFFECTIVE SAYS MR RAPPAPORT WHO HAS RUN HIS DRYCLEANING SHOP FOR 20 YEARS BUT IN VIEW OF TODAY'S ECONOMIC CLIMATE HE SAYS I DON'T LOOK AT IT AS A PLUS BUT DRY CLEANERS ACROSS THE COUNTRY ARE RAPIDLY SHIFTING TO THE NEW TECHNOLOGY ACCORDING TO BILL SEITZ EXECUTIVE DIRECTOR OF THE NEIGHBORHOOD CLEANERS ASSOCIATION A GROUP SERVING STATES ON THE EASTERN SEABOARD SALES ON UPGRADED DRYCLEANING EQUIPMENT HE SAYS HAVE BEEN BRISK ALL THROUGH '93 AUTOMOBILES ALREADY ARE BEING REDESIGNED TO MEET REQUIREMENTS OF THE ACT OZONEDEPLETING CHLOROFLUOROCARBONS ARE LARGELY ABSENT FROM AIRCONDITIONING SYSTEMS IN MOST US MODELS FOR 1994 IN RESPONSE TO A BAN THAT TAKES EFFECT IN 1996 INSTEAD THE AIRCONDITIONING SYSTEMS USE HYDROFLUOROCARBONS WHICH AREN'T KNOWN TO DEPLETE THE OZONE LAYER FORD MOTOR CO WHICH BEGAN MAKING AVAILABLE THE CFCFREE SYSTEMS WITH SOME OF ITS 1992 TAURUSES SAYS THAT VIRTUALLY ALL ITS 1994 CARS HAVE THE NEW COOLANTS WITH THE EXCEPTION OF EARLY MODELS SOLD TO RENTALCAR AGENCIES BRUCE HOOVER FORD'S ENVIRONMENTAL PLANNING MANAGER SAYS THE RENTAL CARS WILL BE RETROFITTED WITH THE NEW AIRCONDITIONING TECHNOLOGY FORD IS ALSO INTRODUCING NEW DIAGNOSTIC COMPUTERS AT SERVICE STATIONS THAT MONITOR AUTO EMISSIONS IN ITS 1994 MUSTANG V6 THUNDERBIRD V8 AND COUGAR V8 OVERALL FORD ESTIMATES THE COST OF EACH OF ITS CARS HAS RISEN 225 DUE TO CLEAN AIR ACT REQUIREMENTS SO FAR AND WILL EVENTUALLY RISE BY 1125 ACCORDING TO KELLY BROWN DIRECTOR OF FORD'S AUTOMOTIVE EMISSIONS AND FUEL ECONOMY OFFICE THE REFRIGERATOR INDUSTRY TOO IS AFFECTED BY THE CLEAN AIR ACT BUT BECAUSE OF INTENSE COMPETITION WITHIN THE MARKET REFRIGERATOR PRICES AREN'T EXPECTED TO RISE SOON LAST APRIL ULINE CORP MILWAUKEE BECAME THE FIRST NORTH AMERICAN APPLIANCE MANUFACTURER TO PHASE OUT USE OF CFCS TO PROPEL FOAM INSULATION INTO REFRIGERATORS ACCORDING TO COMPANY PRESIDENT PHILIP UIHLEIN HE CONCEDES THOUGH THAT HIS COMPANY STILL USES CFCS AS A REFRIGERANT AND THAT THE HYDROCHLOROFLUOROCARBONS USED TO REPLACE CFCS AS A PROPELLANT ARE CONSIDERED ANOTHER THOUGH LESSER POTENTIAL THREAT TO THE OZONE LAYER THE COST OF THE NEW PROCESS ADDED ABOUT 3 TO THE COST OF EACH UNIT MR UIHLEIN SAYS BUT WE JUST ATE IT THE INDUSTRY THE MARKET DICTATES THAT WHIRLPOOL CORP WITH THE HELP OF A 30 MILLION AWARD FROM SEVERAL UTILITIES AROUND THE COUNTRY DEVELOPED A NEW REFRIGERATOR THAT IS ENTIRELY CFCFREE AND WILL BEGIN LIMITED MARKETING EARLY NEXT YEAR VINCE ANDERSON MANAGER OF REFRIGERATION TECHNOLOGY FOR THE COMPANY SAYS THE NEW TECHNOLOGY WILL ABSOLUTELY ENTAIL GREATER COST BUT WHETHER OR NOT THE MARKETPLACE WILL ALLOW US TO PASS IT ON TO THE CONSUMER OR NOT IS A SEPARATE ISSUE THE MOST NOTABLE ACCOMPLISHMENT THUS FAR OF THE CLEAN AIR ACT COMES AT THE GAS PUMP STARTING IN NOVEMBER 1992 THE ACT REQUIRED STATIONS IN 36 URBAN AREAS TO SELL OXYGENATED GASOLINE IN THE WINTER MONTHS TO IMPROVE FUEL COMBUSTION THE EPA SAYS THE PROGRAM HELPED LEAD TO AN 80 REDUCTION IN THE NUMBER OF DAYS THESE AREAS EXCEEDED FEDERAL CARBON MONOXIDE STANDARDS PEAK CARBON MONOXIDE LEVELS DECLINED 13 IN THE AREAS COMPARED WITH A 3 DECLINE IN THE REST OF THE COUNTRY THE OXYGENATEDFUEL REQUIREMENT ADDS THREE TO FIVE CENTS TO THE COST OF GASOLINE SAYS JIM RICHEY MANAGER OF ENVIRONMENTAL HEALTH AND SAFETY AT ARCO OIL & GAS CO THE MAIN MANUFACTURER OF METHYL TERTIARY BUTYL ETHER OR MTBE THE MOST COMMONLY USED OXYGENATED FUEL THE PROGRAM IS UNPOPULAR IN ALASKA WHERE INCREASED SHIPPING COSTS OF MTBE ADD 14 CENTS TO THE COST OF GASOLINE AND HAS NOW BEEN SUSPENDED IN THAT STATE BECAUSE OF REPORTS THAT MTBE INCREASES BLOODLEAD LEVELS AND INDUCES NAUSEA BUT A STUDY TO BE ISSUED THIS WEEK BY THE EPA WILL DISPUTE THE BLOODLEVEL FINDING AND CONCLUDE THAT COMPARED TO GASOLINE IT'S CERTAINLY NO WORSE SAYS AN EPA OFFICIAL THE CLEAN AIR ACT WILL ALSO COMPLICATE AUTO INSPECTIONS SOMEWHAT UNDER THE LAW STARTING IN 1995 PEOPLE LIVING IN 83 HEAVILY POLLUTED URBAN AREAS WILL BE REQUIRED TO HAVE THEIR CARS' ANNUAL EMISSIONSCONTROL INSPECTION OCCUR SEPARATELY FROM WHERE THE NECESSARY REPAIRS ARE MADE IN MANY AREAS SUCH AS CALIFORNIA SERVICE STATIONS PERFORM BOTH FUNCTIONS THIS ENHANCED INSPECTION AND MAINTENANCE PROGRAM IS AMONG THE LEAST POPULAR ASPECTS OF THE CLEANAIR LAW J DEXTER PEACH AN ASSISTANT COMPTROLLER GENERAL AT THE GENERAL ACCOUNTING OFFICE WARNED RECENTLY IN TESTIMONY BEFORE CONGRESS THAT IT COULD CREATE A PING PONG EFFECT IN WHICH MOTORISTS WOULD HAVE TO MAKE REPEATED TRIPS BACK AND FORTH BETWEEN TESTING AND REPAIR DEPOTS STATE LEGISLATORS IN CALIFORNIA ARE RESISTING THE PROGRAM AND TESTY LETTERS HAVE BEEN EXCHANGED ON THE MATTER BETWEEN EPA ADMINISTRATOR CAROL BROWNER AND CALIFORNIA'S GOV PETE WILSON IF THE STATE DEFIES THE REQUIREMENT IT COULD FACE A CUTOFF OF HIGHWAY FUNDS FUTURE REQUIREMENTS FOR ACHIEVING CLEAN AIR ACT GOALS VARY BY COMMUNITY THREE MICHIGAN COUNTIES ON THE EASTERN SHORE OF LAKE MICHIGAN THAT INCLUDE THE CITIES OF GRAND RAPIDS AND MUSKEGON CLAIM THEY WILL HAVE TROUBLE COMPLYING WITH THEIR MANDATES BECAUSE THEY GET AIR POLLUTION FROM CHICAGO MILWAUKEE AND GARY IND ALL OF WHICH ARE GIVEN MORE TIME UNDER THE LAW TO CLEAN UP THEIR AIR THEY FEEL THEY ARE BEING UNFAIRLY TREATED BECAUSE THE MAJORITY OF THE PROBLEM IS BLOWING IN OVER THE LAKE EXPLAINS DAVE YANOCHKO A SUPERVISOR IN THE AIRQUALITY DIVISION OF MICHIGAN'S DEPARTMENT OF NATURAL RESOURCES AN EPA OFFICIAL SAYS THE AGENCY IS LOOKING FOR A CREATIVE WAY TO SOLVE THE PROBLEM CERTAIN STUDIES DISPUTED BY THE ENVIRONMENTAL PROTECTION AGENCY SUGGEST THAT THE OXYGENATED AUTO FUEL METHYL TERTIARY BUTYL ETHER OR MTBE HAS BEEN FOUND IN THE BLOOD OF PEOPLE IN ALASKA A NOV 15 ARTICLE INCORRECTLY STATED THAT USE OF THE FUEL HAS BEEN ALLEGED TO INCREASE LEAD LEVELS IN BLOOD THE ARTICLE ALSO INCORRECTLY IDENTIFIED THE ATLANTIC RICHFIELD CO SUBSIDIARY THAT IS THE MAIN MANUFACTURER OF MTBE THE MANUFACTURER IS ARCO CHEMICAL CO NOT ARCO OIL & GAS CO AS STATED IN THE ARTICLE 9312010129 931022 REVIEW & OUTLOOK EDITORIAL REPUBLICAN INTOLERANCE SENATORS PAUL COVERDELL OF GEORGIA AND KAY BAILEY HUTCHISON OF TEXAS ARE PROOF THAT THE COALITION RONALD REAGAN BUILT CAN STILL WIN ELECTIONS ALTHOUGH BOTH ARE PROCHOICE ON ABORTION THEY UNITED REPUBLICAN SOCIAL MODERATES AND EVANGELICAL CHRISTIANS TO WIN TWO SPECIAL ELECTIONS WITHIN THE PAST YEAR NOW MIKE FARRIS THE GOP CANDIDATE FOR LIEUTENANT GOVERNOR OF VIRGINIA IS TESTING WHETHER COOPERATION BETWEEN THE PARTY'S COUNTRYCLUB AND RELIGIOUS WINGS IS A TWOWAY STREET SOME MODERATE REPUBLICANS HAVE NOT ENTHUSIASTICALLY BACKED MR FARRIS AND A FEW HAVE EVEN ENDORSED HIS LIBERAL DEMOCRATIC OPPONENT SHOULD EVANGELICAL CHRISTIANS COME TO BELIEVE THE GOP WELCOMES THEM AS FOOT SOLDIERS BUT NEVER AS GENERALS MANY OF THEM MAY CRIPPLE THE PARTY BY LEAVING IT OR LOSING INTEREST IN POLITICS MR FARRIS IS AN ATTORNEY AND BAPTIST MINISTER WHO HEADS AN ORGANIZATION OF 30000 FAMILIES WHO HOMESCHOOL THEIR CHILDREN HE CHAIRS CHRISTIAN SOLIDARITY AN INTERNATIONAL HUMANRIGHTS GROUP AND IS STAUNCHLY PROLIFE AND AGAINST GUN CONTROL HOWEVER HE DEFIES MEDIA STEREOTYPES OF WHAT A CHRISTIAN IN POLITICS IS SUPPOSED TO BE MR FARRIS IS NO SINGLEISSUE FANATIC HIS PLATFORM STRESSES THE NEED TO CUT TAXES AND FORCE THE LOSER IN SOME LAWSUITS TO PAY ALL LEGAL FEES HE SAYS THE SUPREME COURT WAS ESSENTIALLY CORRECT IN BANNING OFFICIAL PUBLIC SCHOOL PRAYER AND BIBLE READING AND SAYS ALLOWING FULL SCHOOL CHOICE IS THE SOLUTION FOR PARENTS WHO WANT TO ENCOURAGE THOSE VALUES HIS OPPOSITION TO A STATE CURRICULUM REFORM THAT STRESSES TEAMWORK AND ATTITUDES WAS VALIDATED LAST MONTH WHEN DEMOCRATIC GOVERNOR DOUG WILDER KILLED THE PROGRAM NOTING IT WOULD DETRACT FROM THE STUDY OF BASIC SKILLS MR FARRIS WANTS AMERICA TO REMAIN A TOLERANT NATION HE SUPPORTS ALLOWING GAYS TO TEACH IN PUBLIC SCHOOLS SO LONG AS THEY DON'T PROMOTE HOMOSEXUALITY BUT HE SAYS MANY ELITES TODAY PRACTICE A DOUBLE STANDARD ON TOLERANCE THEY SAY YOU SHOULDN'T MAKE FUN OF HOMOSEXUALS DEMENTED ALBANIAN DWARVES OR ANYONE EXCEPT THE DEVOUTLY RELIGIOUS IN HIS NEW BOOK LIBERAL YALE LAW SCHOOL PROFESSOR STEPHEN CARTER MAKES A SIMILAR POINT ABOUT THE DANGERS OF MARGINALIZING RELIGIOUS AMERICANS IN PUBLIC LIFE NONETHELESS SOME MODERATE REPUBLICANS HAVE ENDORSED DEMOCRATIC INCUMBENT DON BEYER BUSINESSMAN BILL CRUTCHFIELD SAYS THEIR GOAL IS TO DEFEAT PAT ROBERTSON'S MASTER PLAN OF TAKING OVER THE REPUBLICAN PARTY FARRIS BACKERS SAY HIS REAL CONCERN IS DEFENDING A COZY PARTY ELITE AGAINST A CHALLENGE FROM ORDINARY VOTERS MR FARRIS NOTES THAT WHEN MR ROBERTSON RAN FOR PRESIDENT IN 1988 HE WAS A COUNTY CHAIRMAN FOR JACK KEMP HOW MUCH OF A ROBERTSON ROBOT CAN I BE HE LAUGHS INDEED VIRGINIANS DON'T SEEM TO BE BUYING THE HYSTERICAL ATTACKS ON MR FARRIS POLLS SHOW HIM EITHER TIED OR TRAILING NARROWLY WITH ABOUT 20 OF VOTERS UNDECIDED HOW MUCH OF A ROBERTSON ROBOT CAN I BE HE LAUGHS INDEED MANY VIRGINIANS AREN'T BUYING THE HYSTERICAL ATTACKS ON MR FARRIS POLLS SHOW HIM TRAILING BUT NOT BY MUCH ABOUT 20 OF VOTERS ARE UNDECIDED BUT UNCOMMITTED VOTERS COULD BE SWAYED BY THE BIZARRE STANCE OF SENATOR JOHN WARNER VIRGINIA'S ONLY STATEWIDE ELECTED REPUBLICAN ALTHOUGH A CONSERVATIVE MR WARNER WON'T ENDORSE MR FARRIS OR EVEN SAY HE WILL VOTE FOR HIM DIVIDED PARTIES RARELY WIN ELECTIONS AND MR WARNER'S STANDOFFISH ATTITUDE CAN ONLY BE A DRAG ON THE ENTIRE REPUBLICAN TICKET ONE IN FOUR AMERICANS CONSIDER THEMSELVES EVANGELICALS AND THEY REPRESENT AN INTEGRAL PART OF THE REPUBLICAN PARTY IT CAN'T WIN UNLESS THE GOP IS A BIGTENT PARTY THAT STANDS FOR TOLERANCE AND YET IS ALSO CONCERNED ABOUT THE EXTREME SECULARIST BENT OF PUBLIC POLICY THAT KIND OF COALITION BROUGHT BIG REPUBLICAN WINS IN THE 1980S THE EVIDENCE FROM GEORGIA AND TEXAS IS THAT IT CAN DELIVER AGAIN IN THE 1990S BUT ONLY IF THE GOP IS GUIDED BY A COOPERATIVE SPIRIT THAT ESCHEWS INTERNAL POLITICAL INTOLERANCE SEE RELATED LETTER LETTERS TO THE EDITOR UNFAIR CHARGE OF RELIGIOUS BIGOTRY' WSJ DEC 1 1993 9310220202 YY93 MM12 9312010112 931026 REVIEW & OUTLOOK EDITORIAL WILLIE HORTON LIBERALS SPEAKING OF TV VIOLENCE HAS ATTORNEY GENERAL JANET RENO SEEN THE DEMOCRATIC PARTY'S CAMPAIGN ADS IN NEW JERSEY WE RECOMMEND SHE VIEW THE WATERMELON SPOT IN WHICH A HAND WITH A GUN FIRES AWAY AT THE FRUIT WHICH IS PRESUMABLY A PROXY FOR A HUMAN HEAD AS A NARRATOR INTONES THAT THE SAME THING COULD HAPPEN TO YOUR CHILD IF MORE DEMOCRATS AREN'T ELECTED TO BAN GUNS THE WATERMELON EXPLODES INTO A RED MESS CALLS TO THE FLORIO CAMPAIGN FOR A COPY OF THE AD'S PICTURES WERE NOT RETURNED THE AD AGENCY DECLINED TO MAKE THE AD AVAILABLE WE NOTE THIS CHARMING CONTRIBUTION TO PUBLIC DISCOURSE BECAUSE IT MORE OR LESS FITS THE THEME OF THIS YEAR'S ELECTION SEASON AS REPUBLICAN CHALLENGERS TAKE ON REIGNING DEMOCRATIC ELITES THE WILLIE HORTON LIBERALS HAVE TAKEN CHARGE RATHER THAN DEFEND THEIR IDEAS OR THEIR RECORDS THESE INCUMBENTS HAVE DECIDED TO FIRE ASSAULT RIFLES AT THEIR OPPONENTS ESPECIALLY ON SOCIAL ISSUES THAT ONLY A YEAR AGO WERE SUPPOSED TO BE DISTRACTIONS OR BEYOND THE PALE REMEMBER JAMES CARVILLE HE'S THE FELLOW WHO ADVISED CANDIDATE CLINTON THAT IT'S THE ECONOMY STUPID THIS YEAR HE HAS HIS LATEST CLIENT NEW JERSEY GOVERNOR JIM FLORIO RUNNING AGAINST REPUBLICAN CHRISTIE WHITMAN ON EVERYTHING BUT THE ECONOMY THERE'S SOME LOGIC TO THIS SINCE MR FLORIO'S 3 BILLION TAX HIKE CONTRIBUTED TO A RECESSION THAT HAS COST THE STATE 270000 JOBS IN FOUR YEARS BUT CAN'T HE FIND ANYTHING POSITIVE TO SAY A SPOKESWOMAN NOTES THAT MR FLORIO HAS RUN ONE AD TOUTING HIS RECORD ON BEACH POLLUTION ON CABLE AS FOR THE BIG NETWORK TV BUYS THE CARVILLEFLORIO TAG TEAM MAKES ROGER AILES SEEM LIKE BARNEY THE DINOSAUR HERE'S ONE OF THEIR WILLIE HORTONSTYLE ANTICRIME SPOTS CHRISTIE TODD WHITMAN WANTS TO LEGALIZE CERTAIN ASSAULT WEAPONS POW CHRISTIE TODD WHITMAN HAS A PROPOSAL TO WEAKEN NEW JERSEY'S DRUNK DRIVING LAWS BAM WITH AN EPIDEMIC OF CARJACKING WHITMAN IS AGAINST MANDATORY SENTENCES FOR CARJACKERS THEN THE KICK IN THE GUT DOES WHITMAN EVEN UNDERSTAND THE CRIME ISSUE OUR POINT ISN'T TO DEFEND MS WHITMAN WHO DESERVES WHATEVER SHE GETS FOR LETTING A LIBERAL GET TO HER RIGHT ON CRIME AND WELFARE REFORM BUT IT'D BE NICE IF DEMOCRATS AND THEIR FRIENDS IN THE MEDIA WOULD DROP THE PRETENSE THAT ONLY REPUBLICANS PLAY HARDBALL THE NEW JERSEY PRESS CORPS WHICH MAY BE THE MOST PARTISAN IN THE COUNTRY EVEN AS THE STATE'S ECONOMY DRAINS AWAY BEAT UP MS WHITMAN THIS SUMMER FOR HIRING THE AD MAN WHO PLAYED A ROLE IN PUTTING TOGETHER THE FAMOUS WILLIE HORTON SPOT IN 1988 MS WHITMAN THEN DISMISSED HIM THE ELITES NOW PRAISING MR FLORIO FOR HIS CRIME ADS ARE THE SAME CROWD WHO ATTACKED THE GOP'S 1988 PLEDGE OF ALLEGIANCE ISSUE AS IRRELEVANT YET DOES ANYONE REALLY THINK THAT A BAN ON ASSAULT RIFLES IS GOING TO MAKE ALL THAT MUCH DIFFERENCE TO CRIME ON THE STREET ARE FELONS THE SORT TO WAIT IN LINE FOR FIVE DAYS TO BUY HANDGUNS WE AGREE THAT THE ANTICRIME SYMBOLISM OF GUN CONTROL RESONATES WITH SOME VOTERS BUT SYMBOLISM WAS ALSO AT STAKE IN THE PLEDGE ISSUE IN ANY EVENT CAMPAIGN '93 OUGHT TO MAKE LIBERALS WHO CARE ABOUT THE SUBSTANCE OF THEIR AGENDA NERVOUS EVEN IN NEW YORK CITY LIBERALISM'S EMERALD CITY MAYOR DAVID DINKINS LONG AGO GAVE UP DEFENDING HIS RECORD HE'S BUSY PROMISING TO HIRE MORE COPS AND ACCUSING REPUBLICAN RUDY GIULIANI OF HAVING SERVED HORRORS IN THE REAGAN JUSTICE DEPARTMENT THE MAYOR WHO SAT BACK WHILE BLACKS TORMENTED A KOREAN SHOPKEEPER IS ALSO RUNNING AN AD SAYING THAT OF 146 PEOPLE GIULIANI HIRED ONLY 15 WERE LATINO OR BLACK NO LIBERAL CRIES OF RACEBAITING NOR HAVE WE HEARD ANYONE DEPLORE RELIGIOUS BIGOTRY IN VIRGINIA WHERE REPUBLICANS ARE MAKING A STRONG CHALLENGE TO 12 YEARS OF DEMOCRATIC RULE WE'VE WRITTEN ABOUT HOW EVEN SOME REPUBLICAN ELITES ARE TRYING TO SMEAR MIKE FARRIS THE GOP LIEUTENANT GOVERNOR CANDIDATE BECAUSE HE'S AN EVANGELICAL CHRISTIAN BUT TRAILING IN THE GOVERNOR'S RACE DEMOCRAT MARY SUE TERRY HAS NOW TRIED TO DO THE SAME TO REPUBLICAN GEORGE ALLEN PAT ROBERTSON WANTS TO TAKE AWAY A WOMAN'S RIGHT TO CHOOSE AND TEACH CREATIONISM ALLEN SAYS HE'S HAPPY TO HAVE PAT ROBERTSON'S SUPPORT' GOES A TYPICAL TV SPOT LINKING MR ALLEN TO THE TV EVANGELIST AND ENTREPRENEUR IN FACT MR ALLEN HAS NEVER ENDORSED CREATIONISM AND HAPPENS TO BE ALL OVER THE PLACE ON ABORTION BUT IMAGINE THE UPROAR IF MR ALLEN ACCUSED MS TERRY OF BEING ENDORSED BY AND SO SOMEHOW AGREEING WITH JESSE JACKSON ONCE UPON A TIME LIBERALS USED TO BE CONFIDENT ENOUGH IN THEIR BELIEFS TO RUN ON SOMETHING OTHER THAN THE FACT THAT THEIR OPPONENTS BELIEVED IN GOD POLITICS AIN'T BEANBAG BUT AFTER THIS YEAR'S CAMPAIGN WE'D SAY LIBERALS OWE ROGER AILES EITHER AN APOLOGY OR THEIR SILENCE SEE RELATED LETTER LETTERS TO THE EDITOR UNFAIR CHARGE OF RELIGIOUS BIGOTRY' WSJ DEC 1 1993 9310260101 YY93 MM12 9312010090 931025 VOUCHERS DEVIL'S BARGAIN FOR PRIVATE SCHOOLS BY RONALD L TROWBRIDGE ISSUING FROM TOO MANY RESPECTED QUARTERS OF LATE IS A LOCK STOCK AND BARREL ACCEPTANCE OF THE EDUCATIONAL CHOICE/PRIVATE SCHOOL VOUCHER MOVEMENT TAKING THE COUNTRY THE NOVEMBER BALLOT MEASURE IN CALIFORNIA AND THE STATE CONSTITUTIONAL AMENDMENT MOVEMENT IN MICHIGAN AMONG OTHERS HAVE RECEIVED WELLINTENTIONED CONSERVATIVE SUPPORT IT TROUBLES ME AS A CONSERVATIVE TO HAVE TO CONFESS THAT THERE IS A FATAL DOWNSIDE TO THESE PROPOSALS NO ONE IS MORE CONVINCED THAN I THAT COMPETITION IS REQUIRED TO BREAK UP THE MONOPOLY OF THE TEACHER UNIONS YET PUBLIC MONEY FOR PRIVATE SCHOOLS WILL INEVITABLY END PRIVATE SCHOOLS AS WE KNOW THEM NOW NO ONE WILL FORCE ANY PRIVATE SCHOOL TO ACCEPT GOVERNMENT MONEY BUT MOST PRIVATE SCHOOLS WILL SUCCUMB TO THE EASY REWARD PRIVATE SCHOOLS WILL BE DEFINED AS RECIPIENT INSTITUTIONS OF FEDERAL OR STATE FUNDS AND THEREFORE WILL BE REQUIRED TO FOLLOW THE MONOLITHIC POLITICAL CONTROL OF WASHINGTON OR THE STATE CAPITAL IN OTHER WORDS IN RETURN FOR GOVERNMENT FUNDS THEY WILL BE BLACKMAILED INTO ACCEPTING AND PROMOTING AFFIRMATIVE ACTION EUPHEMISTICALLY LABELED CIVIL RIGHTS LEGISLATION AND POLITICAL CORRECTNESS IN THE MISLEADING GUISE OF DIVERSITY I BASE THIS ON HILLSDALE COLLEGE'S ACTUAL EXPERIENCES OUR PRESIDENT GEORGE ROCHE HAS SAID IN THE MID1960S WHEN THE FIRST BROADBASED FEDERAL AID TO STUDENTS IN HIGHER EDUCATION WAS PROPOSED CONGRESS ASSURED COLLEGES AND UNIVERSITIES THAT THE AID WOULD COME WITH NO STRINGS ATTACHED AND THAT IT WOULD NOT JEOPARDIZE THEIR INDEPENDENCE THEN IN THE MID1970S THE RULES OF THE GAME WERE CHANGED THE COLLEGE WAS DEFINED AS A RECIPIENT INSTITUTION AND WAS SUBJECT TO TITLE IX LEGISLATION ON AFFIRMATIVE ACTION IT MADE NO DIFFERENCE THE GOVERNMENT SAID THAT WE HAD OUR OWN ALTERNATIVE POLICIES OF NONDISCRIMINATION HILLSDALE'S POSITION WAS THAT SINCE IT DID NOT ACCEPT DIRECT AID FROM GOVERNMENT THE AID WENT DIRECTLY TO STUDENTS IT WAS UNDER NO OBLIGATION TO COMPLY THE CASE WENT ALL THE WAY TO THE SUPREME COURT AND WE LOST SINCE 1985 WE HAVE RAISED PRIVATE FUNDS TO REPLACE THE FEDERAL GRANTS AND LOANS STUDENTS FORMERLY RECEIVED THE DANGER SIGNS FOR PRIVATE SCHOOLS ARE PRESENT I CITE JUST A FEW IN 1952 THE COMMISSION ON FINANCING HIGHER EDUCATION COMPRISING THE PRESIDENTS OF JOHNS HOPKINS UNION COLLEGE THE CALIFORNIA INSTITUTE OF TECHNOLOGY THE UNIVERSITY OF MISSOURI STANFORD BROWN A FORMER PRESIDENT OF COLUMBIA AND THE PROVOST OF HARVARD CONCLUDED WE ARE CONVINCED THAT IT WOULD BE FATAL WERE FEDERAL SUPPORT TO BE SUBSTANTIALLY EXTENDED POWER MEANS CONTROL DIVERSITY DISAPPEARS AS CONTROL EMERGES UNDER CONTROL OUR HUNDREDS OF UNIVERSITIES AND COLLEGES WOULD FOLLOW THE ORDER OF ONE CENTRAL INSTITUTION AND THE FREEDOM OF HIGHER EDUCATION WOULD BE LOST THEY WERE RIGHT IF GOVERNMENT VOUCHERS ARE EXTENDED TO PRIVATE PRIMARY AND SECONDARY SCHOOLS TRULY PRIVATE SCHOOLS IN FIVE 10 15 OR 20 YEARS WILL BECOME VIRTUALLY EXTINCT MR TROWBRIDGE IS VICE PRESIDENT FOR EXTERNAL PROGRAMS AND COMMUNICATIONS AT HILLSDALE COLLEGE IN MICHIGAN SEE RELATED LETTER LETTERS TO THE EDITOR VOUCHERS NO THREAT TO PRIVATE SCHOOLS WSJ DEC 1 1993 9310250025 YY93 MM12 9312010003 931029 POLITICS & POLICY CLINTON URGES CORPORATIONS TO SUPPORT RETRAINING OF THOSE LOSING JOBS TO NAFTA BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRESIDENT CLINTON URGED CORPORATE AMERICA TO SUPPORT A BROAD PROGRAM TO RETRAIN WORKERS AS A WAY OF CALMING FEARS OVER PROSPECTIVE JOB LOSSES TO MEXICO AND SELLING THE NORTH AMERICAN FREE TRADE AGREEMENT IN CONGRESS TELL YOUR EMPLOYEES AND PUBLICLY COMMIT THAT YOU WILL SUPPORT A RICH FULL JOBRETRAINING PROGRAM FOR PEOPLE WHO LOSE THEIR JOBS AS A RESULT OF NAFTA THE PRESIDENT SAID AT A CONFERENCE ON LATIN AMERICA SPONSORED BY THE WALL STREET JOURNAL BY MAKING THE APPEAL THE PRESIDENT WAS BUILDING ON HIS THEME THAT AMERICANS LACK ECONOMIC SECURITY AND THUS NEED HEALTH CARE JOB RETRAINING AND OTHER SOCIAL PROGRAMS BEFORE THEY WILL TAKE THE RISKS ASSOCIATED WITH TRADE LIBERALIZATION IN ADDITION BY CHALLENGING CORPORATE EXECUTIVES TO TAKE A POSITION THAT COULD COST THEM MONEY MR CLINTON IS TRYING TO PUT A POPULIST SPIN ON HIS NAFTA SUPPORT FOR SEVERAL YEARS FOES HAVE USED POPULIST PITCHES THAT NAFTA WILL COST JOBS AS A MEANS OF RALLYING OPPOSITION TO THE TRADE PACT ACROSS THE COUNTRY THE PRESIDENT TRIED OUT SOME OTHER THEMES THAT HE IS LIKELY TO REPRISE IN THE DAYS BEFORE THE NAFTA VOTE IN THE HOUSE SCHEDULED FOR NOV 17 HE CALLED THE PACT WHICH WOULD LIBERALIZE TRADE AMONG THE US MEXICO AND CANADA OVER 15 YEARS A REAL TEST OF OUR CHARACTER AS A COUNTRY AND URGED LAWMAKERS TO VOTE FOR THE ACCORD ALMOST AS AN ACT OF COURAGE TODAY MR CLINTON PLANS TO MAKE ANOTHER NAFTA SPEECH AT THE JOHN F KENNEDY LIBRARY IN BOSTON A PLACE THAT EXALTS THE FORMER PRESIDENT'S CALL FOR SELFSACRIFICE FOR THE NATIONAL GOOD A CALL THAT STIRRED MR CLINTON AS A YOUNG MAN MR CLINTON SAID THE DETAILS OF THE NAFTA AGREEMENT HAD BECOME IRRELEVANT TO THE TRADE DEBATE INSTEAD NAFTA HAD BECOME SYMBOLIC OF THE FEARS OF WORKING PEOPLE WHO HAVE SEEN THEIR STANDARD OF LIVING SLIP DURING THE PAST FEW DECADES HE CALLED THE TRADE PACT A CATCHALL FOR THE ACCUMULATED RESENTMENT OF THE PAST ANXIETIES ABOUT THE FUTURE AND FRUSTRATIONS WITH THE PRESENT TO ALLAY THOSE FEARS HE URGED CORPORATE EXECUTIVES TO BACK A RETRAINING PROGRAM THAT WOULD GO WELL BEYOND THE CURRENT SYSTEM OF UNEMPLOYMENT INSURANCE THE PLAN WOULD CALL FOR COUNSELING WORKERS PROVIDING EDUCATION AND RETRAINING THEM SO THEY COULD FIND JOBS OUTSIDE THEIR PRIOR LINE OF WORK MOST PEOPLE WON'T GET THEIR OLD JOBS BACK GIVEN THE RAPID TECHNOLOGICAL AND MANAGEMENT CHANGES IN SOCIETY THE PRESIDENT SAID MR CLINTON ALSO URGED CORPORATE OFFICIALS TO PERSUADE THEIR EMPLOYEES TO LOBBY FOR THE PACT LAWMAKERS HE SAID ARE DELUGED WITH ANTINAFTA PLEAS BY UNION WORKERS AND MEMBERS OF ROSS PEROT'S UNITED WE STAND AMERICA LAWMAKERS WANT OTHER REAL VOTERS TO ASK THEM TO VOTE FOR NAFTA THE PRESIDENT SAID DURING HIS TALK AT THE WALDORFASTORIA HOTEL PRIVATELY SENIOR ADMINISTRATION OFFICIALS HAVE BEEN CONTEMPTUOUS OF THE EFFORTS SO FAR BY CORPORATE OFFICIALS WHO THEY COMPLAIN HAVE LIMITED THEIR ENDEAVORS TO RAISING MONEY WRITING OPINION PIECES FOR NEWSPAPERS OR SWOOPING IN TO WASHINGTON TO MEET WITH A FEW LAWMAKERS IT'S LIKE WE'RE ALL PREACHING TO THE SAVED MR CLINTON SAID THERE'S A LOT OF FOLKS OUT THERE WHO AREN'T SAVED YET BUT THEY'RE WILLING TO LISTEN SEE RELATED LETTER LETTERS TO THE EDITOR JOB RETRAINING ISN'T THE ANSWER WSJ DEC 1 1993 9310290005 YY93 MM12 9311300152 931130 BROWNINGFERRIS IS ASKED BY A JUDGE TO PLAN ARBITRATION SYSTEM FOR SUITS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL BROWNINGFERRIS INDUSTRIES INC EXPECTING A WAVE OF LAWSUITS AS IT TAKES NEW YORK CITYAREA CUSTOMERS AWAY FROM SMALLER TRASH HAULERS WAS ASKED BY A STATE COURT JUDGE TO PROPOSE AN ARBITRATION SYSTEM TO SETTLE THE DISPUTES THE MOVE COULD GREATLY SPEED THE EFFORT BY BROWNINGFERRIS THE NATION'S NO 2 HAULER TO PENETRATE THE 1 BILLION NEW YORK HAULING MARKET WHICH HAS FOR DECADES BEEN INFLUENCED BY MAFIA MEMBERS AND AVOIDED BY NATIONAL HAULERS MOB INVOLVEMENT AND LITTLE COMPETITION HAVE LEFT THE CITY WITH THE NATION'S HIGHEST COMMERCIAL TRASHREMOVAL PRICES NEW YORK OFFICIALS SAY A DISPUTERESOLUTION PANEL SUPERVISED BY BUT SEPARATE FROM THE COURT SYSTEM IS SOMETHING I PROPOSED NEW YORK SUPREME COURT JUSTICE DIANE A LEBEDEFF SAID IN A TELEPHONE INTERVIEW BROWNINGFERRIS MOVING TO TAKE MARKET SHARE FROM THE HUNDREDS OF SMALL HAULERS THAT COLLECTIVELY DOMINATE THE MARKET COULD FACE A SERIES OF CASES THE JUDGE SAID IT'S IN THEIR INTEREST BOTH EXISTING HAULERS AND BROWNINGFERRIS TO FIND SOME CHEAPER WAY TO RESOLVE IT THAN CASEBYCASE COURT LITIGATION THE NEW YORKAREA HAULERS' ASSOCIATION COUNCIL OF TRADE WASTE ASSOCIATIONS INC LAST MONTH SUED HOUSTONBASED BROWNINGFERRIS IN STATE COURT ALLEGING THE BIG HAULER IS ENGAGED IN THE EARLY STAGES OF A BLITZANDGOUGE OPERATION BLITZING THE MARKET WITH LOW PRICES TO DRIVE SMALLER HAULERS OUT OF BUSINESS THEN RAISING PRICES ON A CAPTIVE MARKETPLACE BROWNINGFERRIS DENIES THE CHARGE AND SAYS THE CITY'S HIGH PRICES ALLOW IT TO OFFER BIG DISCOUNTS JUDGE LEBEDEFF SAID SHE EXPECTS TO RULE IN A WEEK OR TWO ON THE LOCAL ASSOCIATION'S REQUEST FOR A PRELIMINARY INJUNCTION AGAINST BROWNINGFERRIS EITHER WAY SHE RULES SHE SAID AN OUTSIDE PANEL WOULD BE USEFUL IF SHE DENIES THE INJUNCTION BROWNINGFERRIS COULD BE HIT WITH MORE LAWSUITS IF SHE GRANTS IT WE'D HAVE A SERIES OF CONTEMPT MOTIONS AS BROWNINGFERRIS TRIES TO SIGN UP NEW CUSTOMERS THERE ARE GOING TO BE CONTRACT DISPUTES THE JUDGE'S SUGGESTION IF ENACTED WOULD SPARE THE ALREADY CLOGGED NEW YORK COURTS YET ANOTHER GROUP OF LAWSUITS AND ALLOW BROWNINGFERRIS TO MOVE MORE QUICKLY IN GAINING MARKET SHARE IN NEW YORK BOTH BROWNINGFERRIS AND THE NEW YORK HAULERS ASSOCIATION EARLIER THIS MONTH SENT THE JUDGE LETTERS SHE SAID OUTLINING HOW SOMETHING AKIN TO AN ARBITRATION PANEL COULD WORK LAWYERS FOR BOTH SIDES REFUSED TO COMMENT MANY COMMERCIAL ESTABLISHMENTS OFFICE BUILDINGS HOTELS AND SHOPS HAVE CONTRACTS WITH THEIR HAULERS WHAT'S MORE NEW YORK HAULERS TRADITIONALLY HAVEN'T TAKEN CUSTOMERS OFTEN FROM ONE ANOTHER RESULTING IN WHAT CITY OFFICIALS SAY IS AN INEFFICIENT AND COSTLY CARTEL LAWENFORCEMENT OFFICIALS HAVE PROSECUTED MANY MOBSTERS INVOLVED IN THE TRASH BUSINESS BUT ALSO RECOGNIZED THAT CONVICTIONS ALONE WON'T BRING COMPETITION TO THE BUSINESS AFTER BEING INVITED IN BROWNINGFERRIS ABOUT A YEAR AGO BEGAN TRYING TO SIGN UP CUSTOMERS IN MANHATTAN THE OTHER BOROUGHS AND BEYOND OFFERING PRICE CUTS OF UP TO 50 IT HAS WON A HANDFUL OF BIG ACCOUNTS SUCH AS THE HOTEL INTERCONTINENTAL AND LORD & TAYLOR'S MAIN STORE AND HEADQUARTERS BUT WORRIED ABOUT SAFETY IT HAS AT TIMES HAD ARMED GUARDS FOLLOW THE TRASH TRUCKS IT USES THE LOCAL HAULERS ASSOCIATION COMPLAINS THAT THE EFFORT INTERFERES WITH ITS MEMBERS' CONTRACTS JUSTICE LEBEDEFF SAID SHE HAD HOPED THE TWO SIDES WOULD USE HER SUGGESTION TO SETTLE THE CURRENT CASE AND THEN MOVE TOWARD SETTING UP A PANEL TO RESOLVE FUTURE DISPUTES BUT SHE WILL RULE FIRST AND THEN ENCOURAGE A MOVE TOWARD ARBITRATION SHE SAID 9311300151 931130 TECHNOLOGY MYLAN SETTLES SUITS OVER BRIBES TO FDA WITH 2 COMPANIES PITTSBURGH MYLAN LABORATORIES INC SAID IT REACHED SETTLEMENTS WITH TWO OF EIGHT GENERIC DRUG COMPANIES THAT IT SUED IN 1989 FOR ALLEGEDLY BRIBING FOOD AND DRUG ADMINISTRATION OFFICIALS TO ENSURE SPEEDY REVIEWS OF THEIR PRODUCTS THE TWO COMPANIES PAR PHARMACEUTICALS AND NOWDEFUNCT QUAD PHARMACEUTICALS AGREED TO PAY A TOTAL OF 1 MILLION IN CASH AND 2 MILLION IN THE STOCK OF PHARMACEUTICAL RESOURCES INC THE SUCCESSOR TO PAR AND QUAD THAT'S LESS THAN 1 OF PHARMACEUTICAL RESOURCES' SHARES OUTSTANDING THE SETTLEMENT IS A PITTANCE COMPARED WITH THE MORE THAN 200 MILLION MYLAN ORIGINALLY SOUGHT FROM ALL DEFENDANTS BUT A MYLAN SPOKESWOMAN SAID MORE DEFENDANTS REMAIN SHE ADDED THAT THE POINT OF THE LAWSUIT WAS TO CLEAN UP THE INDUSTRY NOT TO MAKE MONEY THE SETTLEMENT COMES FIVE WEEKS AFTER THE US FEDERAL COURT OF APPEALS IN RICHMOND VA REINSTATED MYLAN'S SUIT THE CASE HAD BEEN DISMISSED ON TECHNICAL GROUNDS IN DECEMBER 1992 BY A US DISTRICT COURT JUDGE IN BALTIMORE THE SUIT WILL NOW GO TO TRIAL IN THAT COURT A DATE HASN'T BEEN SET OF THE EIGHT COMPANIES NAMED IN MYLAN'S ORIGINAL LAWSUIT THREE HAVE NOW SETTLED PAR QUAD AND VITARINE PHARMACEUTICALS INC THE BANKRUPT COMPANY PAID 600000 LAST YEAR ONE COMPANY AKZO NV OF THE NETHERLANDS WAS DISMISSED ON THE GROUNDS THAT IT'S NOT LIABLE FOR THE ACTIONS OF A THIRDTIER SUBSIDIARY PHARMACEUTICAL BASICS INC OF CHICAGO PHARMACEUTICAL BASICS IS A UNIT OF AKZO'S AKZO PHARMA UNIT FOUR COMPANIES REMAIN IN THE SUIT PHARMACEUTICAL BASICS AMERICAN HOME PRODUCTS CO OF NEW YORK AND ITS QUANTUM PHARMICS UNIT AND AMERICAN THERAPEUTICS INC OF BOHEMIA NY THE LATEST VERSION OF MYLAN'S LAWSUIT ALSO NAMES 12 INDIVIDUALS WHO ARE FORMER EMPLOYEES OR AGENTS OF THE DEFENDANT COMPANIES OR THE FDA ONLY ONE ASHOK PATEL HAS SETTLED MR PATEL A FORMER SENIOR VICE PRESIDENT OF PAR PHARMACEUTICALS INC HAS PLEADED GUILTY TO GIVING UNLAWFUL GRATUITIES TO FDA OFFICIALS 9311300150 931130 TECHNOLOGY & HEALTH MICROSOFT DIGITAL TO WORK TOGETHER ON OBJECT SOFTWARE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP WILL WORK WITH DIGITAL EQUIPMENT CORP TO EXTEND THE REACH OF A STRATEGIC SOFTWARE STANDARD DEVELOPED BY MICROSOFT THE SOFTWARE MAKER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID WILLIAM H GATES SAID THE TWO CONCERNS WILL INTEGRATE EFFORTS IN OBJECTORIENTED SOFTWARE AN EMERGING TECHNOLOGY IN WHICH SOFTWARE IS WRITTEN IN SEPARATE MODULES CALLED OBJECTS THAT CAN BE CONNECTED TO EACH OTHER THIS APPROACH IS WIDELY EXPECTED TO CHANGE SIGNIFICANTLY THE WAY SOFTWARE IS DESIGNED AND USED IN THE AGREEMENT MR GATES SAID DIGITAL'S OBJECT BROKER TECHNOLOGY WILL BE INTEGRATED WITH MICROSOFT'S OBJECT LINKING AND EMBEDDING STANDARD OR OLE WHICH IS ALREADY BEING USED ACROSS THE PC SOFTWARE INDUSTRY THE LINK WITH THE DIGITAL PRODUCT GIVES MICROSOFT A BRIDGE TO OTHER OPERATING SYSTEMS SUPPORTED BY OBJECT BROKER SUCH AS APPLE COMPUTER INC'S MACINTOSH AND THE UNIX STANDARD BROADENING THE POTENTIAL REACH OF MICROSOFT'S OLE AND A FORTHCOMING RELEASE OLE 2 WILLIAM STRECKER DIGITAL'S ENGINEERING CHIEF SAID THE COLLABORATION WILL MAKE IT MUCH EASIER FOR CUSTOMERS TO WRITE CLIENTSERVER SOFTWARE SUCH SOFTWARE RUNS OFFICE PCS OR CLIENTS WHICH ARE CONNECTED TO LARGER COMPUTERS CALLED SERVERS DIGITAL'S SOFTWARE FOCUSES ON THE SERVER SIDE OF THE EQUATION WHILE MICROSOFT DOMINATES THE DESKTOP SIDE DIGITAL IS UNIQUE IN PROVIDING OBJECT SOFTWARE THAT RUNS ACROSS ALL THE POPULAR COMPUTING PLATFORMS NOT JUST THEIR OWN MR GATES SAID BY INTEGRATING DIGITAL'S TECHNOLOGY IT PROVIDES US WITH A LINK TO THE OTHER MAJOR PLATFORMS NOT SUPPORTED BY OLE AND EMBRACES AN EMERGING STANDARD CALLED THE COMMON OBJECT MODEL THE AGREEMENT ALSO SUGGESTS CONTINUED CLOSE COOPERATION BETWEEN MICROSOFT OF REDMOND WASH AND DIGITAL A COMPUTER MAKER BASED IN MAYNARD MASS DIGITAL IS A BACKER OF MICROSOFT'S WINDOWS NT A NEW OPERATING SYSTEM THAT COMPETES WITH UNIX ANOTHER INDUSTRY STANDARD ALEX MORROW SYSTEMS TECHNOLOGY MANAGER FOR LOTUS DEVELOPMENT CORP WELCOMED THE MOVE CALLING IT GOOD NEWS FOR THE INDUSTRY BECAUSE IT LOOKS AS IF OLE 2 WILL RUN ON MULTIPLE PLATFORMS THAT THEY'RE GOING BEYOND COMPUTERS RUNNING ONLY WINDOWS OR WINDOWS NT WHILE THERE ARE STILL UNANSWERED QUESTIONS HE SAID INCLUDING THE ROLE OF POSSIBLE RIVAL STANDARDS FROM OTHER GROUPS OF COMPANIES THERE'S STILL TIME FOR THESE TECHNOLOGIES TO COME TOGETHER BEFORE IT BECOMES SOMETHING MOST USERS ARE GOING TO NEED TO WORRY ABOUT 9311300149 931130 LEISURE & ARTS ON SPORTS OLD JOE STILL BETTER THAN MOST BY FREDERICK C KLEIN KANSAS CITY MO THERE WILL BE A SUPER BOWL ON JAN 30 IN ATLANTA WE KNOW THIS BECAUSE NATIONAL FOOTBALL LEAGUE COMMISSIONER PAUL TAGLIABUE TELLS US SO FOR THE IDENTITY OF THE LIKELY CONTESTANTS HOWEVER WE SHALL HAVE TO BE PATIENT IT'S ALWAYS TEMPTING TO ASSUME THAT THE FUTURE WILL REPEAT THE PAST BUT LAST WEEK'S RESULTS MAY MAKE THAT UNWISE THE DALLAS COWBOYS VICTORS IN SUPER BOWL LAST LOOKED TO BE SAILING TOWARD A RETURN A COUPLE OF WEEKS BACK BUT CONSECUTIVE LOSSES TO THE SOSO ATLANTA FALCONS AND ON THANKSGIVING DAY IN AN ICY HOMEFIELD SKID BOWL TO THE MIAMI DOLPHINS MEAN THEY TRAIL THE NEW YORK GIANTS IN THEIR OWN DIVISION WE DIDN'T PLAY WELL ENOUGH ON OFFENSE OUR DEFENSE COULDN'T HOLD THEM WE JUST DIDN'T MAKE ANY PLAYS SAID LEVY LATER THAT ABOUT COVERED EVERYTHING I GUESS THE WIN PUT THE CHIEFS AT 83 TOO BUT HAVING JUST TRIUMPHED THEIR POSTGAME EXPRESSIONS WERE THE OPPOSITE OF THEIR GUESTS' FROWNS SO WHAT IF THEY'D BOWED TO THE SOSO CHICAGO BEARS JUST THE WEEK BEFORE NOT ONLY HAD THEY WON ON SUNDAY BUT THEY'D DONE SO UNDER THE RENEWED GUIDANCE OF QUARTERBACK JOE MONTANA LASTHURRAHING IT IN BARBEQUE CITY AFTER A MATCHLESS FOURTITLE 1980S WITH THE SAN FRANCISCO 49ERS THE MONTANA WHO'S WEARING THE CHIEFS' ARROWHEAD HELMET IS THE OLD MONTANA NOT THE MONTANA OF OLD AT AGE 37 HE'S BECOME A SORT OF MING VASE LOVELY BUT FRAGILE IN HIS LAST TWO SEASONS IN SF ELBOW WOES ALLOWED HIM TO PLAY IN EXACTLY ONE GAME AND BEFORE SUNDAY A RECURRING HAMSTRING PULL AN UNUSUAL INJURY FOR A QUARTERBACK HAD LIMITED HIS APPEARANCES TO 14 OF HIS TEAM'S FIRST 40 QUARTERS IN THIS ONE BUT WHAT'S LEFT OF OLD BLUE EYES IS BETTER THAN WHOMEVER ELSE THE CHIEFS OR MOST OF THE OTHER NFL TEAMS CAN MUSTER HE VIRTUALLY ESCHEWED THE LONG PASS ON SUNDAY AND SOMETIMES THREW HASTILY RATHER THAN RISKING CLOSE ENCOUNTERS WITH BILL LINEMEN MAYBE HE'S SHORTER THAN HE USED TO BE BECAUSE FIVE OF HIS PASSES WERE BATTED DOWN AT THE LINE OF SCRIMMAGE BUT HE STILL COMPLETED 18 OF 32 THROWS FOR 208 YARDS AND TWO TOUCHDOWNS AND GENERALLY KEPT HIMSELF AND HIS TEAM OUT OF TROUBLE MONTANA WAS REALISTIC IN HIS SELFAPPRAISAL SAYING THAT AFTER HIS LATEST THREEGAME LAYOFF HE WASN'T AS SHARP AS HE'D WANTED TO BE BUT HIS TEAMMATES NOTING THEIR 50 MARK IN GAMES IN WHICH HE'S PLAYED AT LEAST HALF WERE MORE THAN WILLING TO MAKE ALLOWANCES A LOT OF TEAMS BESIDES US ARE USING THE SAN FRANCISCO OFFENSE WHICH FEATURES SWIFT BALLCONTROLLING PASSES BUT JOE'S THE GENERAL IT'S HIS OFFENSE SAID NEIL SMITH THE MASSIVE KC DEFENSIVE END JUST HAVING HIM ON THE FIELD MAKES EVERY PART OF OUR TEAM BETTER INDEED THE CHIEFS CONTROLLED ALL FACETS OF SUNDAY'S ACTION TURNING IN WHAT THEIR COACH MARTY SCHOTTENHEIMER CALLED AS CLOSE TO A COMPLETE GAME AS WE'VE PLAYED EXCEPT FOR A 13PLAY 80YARD TOUCHDOWN DRIVE ON THEIR SECOND BALL POSSESSION THE BILLS WERE BUFFALOED BY A SMOTHERING CHIEF DEFENSE THURMAN THOMAS THE AMERICAN CONFERENCE'S LEADING RUSHER COMING IN WITH 962 YARDS AND A 41YARDSPERCARRY AVERAGE WAS HELD TO 25 YARDS IN 15 CARRIES AND HIS TEAM'S TOTAL YARDAGE OVERLAND CAME TO JUST 43 THAT WAS 31 YARDS FEWER THAN THE ACCUMULATION OF THE VETERAN MARCUS ALLEN ANOTHER KANSAS CITY RECLAMATION PRODUCT WHO'D BEEN MOSTLY SNUBBED BY HIS FORMER TEAM THE LOS ANGELES RAIDERS OVER THE PREVIOUS TWO SEASONS IT BOTHERED ALLEN NOT A BIT THAT HE WAS ASKED TO CARRY THE BALL A SEASONHIGH 22 TIMES THEY SHOULD USE ME UP SMILED THE 33YEAROLD I'M NOT GONNA BE AROUND MUCH LONGER THE CHIEFS GOT TO BUFFALO QB JIM KELLY REPEATEDLY SACKING HIM TWICE AND KNOCKING HIM AROUND ON OTHER OCCASIONS KELLY WHO HAS A HISTORY OF KNEE INJURIES LIMPED OUT OF THE GAME IN THE THIRD QUARTER WITH A REPORTED ANKLE SPRAIN HE RETURNED ONLY TO LIMP OUT AGAIN IN THE FINAL PERIOD THIS TIME HE STAYED OUT LEAVING LAST GASPS TO HIS UNDERSTUDY FRANK REICH THOUGH KELLY HAD A MISERABLE AFTERNOON IN WHICH HE THREW THREE INTERCEPTIONS BUFFALO CAN ILL AFFORD TO LOSE HIM FOR AN EXTENDED PERIOD SUNDAY WAS MONTANA'S DAY THOUGH AND IF HE WASN'T UP TO HIS ALLPRO PAR HE STILL THRILLED THE 74000 FANS IN ARROWHEAD STADIUM WHO WERE CLEARLY DELIGHTED WITH HIS PRESENCE THE CHIEFS' FIRST TOUCHDOWN AFTER SAFETY CHARLES MINCY RECOVERED ANDRE REED'S FUMBLE ON THE BUFFALO 28YARD LINE CAME ON AN 18YARD SWING PASS FROM JOE TO ALLEN IN KC'S NEXT SCORING THRUST WHICH ENDED WITH A SECONDQUARTER FIELD GOAL HIS FIVE PASS COMPLETIONS IN SIX TRIES ACCOUNTED FOR 44 OF THE 64 YARDS THE CHIEFS WENT UP 177 IN THE THIRD QUARTER AFTER A 29YARD PASS INTERFERENCE PENALTY ON A THIRDDOWNANDSEVEN PLAY GAVE THEM THE BALL ON THE BUFFALO ONEYARD LINE THIS CRUCIAL PENALTY CALLED BY AN OFFICIAL WHO WAS FAR FROM THE PLAY HAS BECOME A REGRETTABLE STAPLE OF NFL LIFE BUT THAT'S NOT JOE'S FAULT SAFELY AHEAD HE CONSERVATIVELY GUIDED HIS MATES TO THE TWO MORE FIELD GOALS THAT SEALED THE BILLS' FATE KANSAS CITY'S GRATITUDE FOR THE WIN WAS TEMPERED BY THE TEAM'S HISTORY ANCIENT AND RECENT THE CHIEFS WON A SUPER BOWL IN 1970 BUT IN THE YEARS SINCE HAVE CAPTURED BUT A SINGLE DIVISIONAL TITLE IN 1971 AND A LONE PLAYOFF GAME IN 1991 AND THIS SEASON'S CARD HAS BEEN PUNCTUATED BY LOPSIDED LOSSES TO HOUSTON AND MIAMI IN ADDITION TO THE NARROW CHICAGO DEFEAT EVERY GAME HAS A POINT VALUE OF ONE WE'VE GOT TO APPROACH EVERY WEEK THE WAY WE DID THIS ONE SCHOTTENHEIMER SAID BUT WITH JOE HALE THE COACH COULD BE PARDONED AN ANTICIPATORY PEEK AHEAD AS COULD WE 9311300148 931130 WHO'S NEWS TERADYNE INC TERADYNE INC BOSTON ALBERT CARNESALE DEAN OF HARVARD UNIVERSITY'S JOHN F KENNEDY SCHOOL OF GOVERNMENT WAS NAMED A DIRECTOR OF THIS SEMICONDUCTOR AND TEST EQUIPMENT MAKER INCREASING BOARD MEMBERSHIP TO 12 9311300147 931130 INDUSTRY FOCUS BIG MEDICALEQUIPMENT MAKERS TRY ULTRASOUND MARKET COSTCUTTING PRESSURES PROMPT SHIFT AWAY FROM MORE EXPENSIVE DEVICES BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL RESPONDING TO POLITICAL AND MARKET PRESSURES TO CUT HEALTHCARE COSTS BIG MEDICALEQUIPMENT MAKERS ARE MOVING IN ON THE MARKET FOR ULTRASOUND DIAGNOSTIC IMAGING LONG SERVED BY SMALLER MANUFACTURERS IF THEIR STRATEGY IS CORRECT ULTRASOUND MAY BE POISED TO BATTLE THE MOREEXPENSIVE MAGNETIC RESONANCE IMAGING OR MRI AND OTHER IMAGING TECHNIQUES IN THIS 9 BILLION GLOBAL MARKET INDUSTRY EXPERTS SAY AN ESTIMATED 50 COMPANIES IN THE US SELL ULTRASOUND MACHINES LED BY ACUSON CORP OF MOUNTAIN VIEW CALIF HEWLETTPACKARD CO OF PALO ALTO CALIF AND ADVANCED TECHNOLOGY LABORATORIES INC OF BOTHELL WASH BUT NOW THE BIG THREE MEDICALEQUIPMENT COMPANIES GENERAL ELECTRIC CO SIEMENS AG OF GERMANY AND PHILIPS ELECTRONICS NV THE BIG DUTCH ELECTRONICS COMPANY ARE MOVING IN ANALYSTS SAY CURRENTLY GE AND SIEMENS ACCOUNT FOR LESS THAN 10 OF THE MARKET EACH AND PHILIPS HAS 3 TO 4 SAYS PHILIP DREW A MEDICALEQUIPMENT CONSULTANT IN CONCORD MASS ULTRASOUND MACHINES ARE NONINVASIVE AND OPERATE LIKE SONAR IN USING HIGHFREQUENCY SOUND WAVES TO MAKE IMAGES OF THE INSIDE OF THE BODY BECAUSE IMAGING OF DIFFERENT PARTS OF THE BODY REQUIRES DIFFERENT SCANNING METHODS EACH MACHINE IS MADE FOR SPECIFIC TASKS THE MACHINE FOR IMAGING THE HEART IS DIFFERENT FROM THE ONE USED FOR UROLOGY IMAGING THEY COST BETWEEN 15000 AND 250000 DEPENDING UPON THEIR DIAGNOSTIC CAPABILITIES MRI MACHINES WHICH USE POWERFUL MAGNETIC FIELDS COST BETWEEN 1 MILLION AND 2 MILLION AND CT SCANNERS WHICH USE XRAYS COST BETWEEN 350000 TO MORE THAN A MILLION DOLLARS HERALDING ITS MOVE INTO ULTRASOUND GE'S MEDICAL SYSTEMS DIVISION YESTERDAY INTRODUCED ITS MACHINE FOR VASCULAR ABDOMINAL AND UROLOGICAL IMAGING GE MEDICAL SAID THE MACHINE WILL BE FIRST IN A NEW LINE OF POWERFUL UPGRADABLE ULTRASOUND SYSTEMS DESIGNED TO HELP GE ESTABLISH A LEADERSHIP POSITION GE HAS BEEN MAKING ULTRASOUND MACHINES FOR OTHER TYPES OF DIAGNOSTIC IMAGING FOR YEARS BUT IT HAS BEEN A SMALL PLAYER IN THE MARKET THAT'S GROWING QUICKLY AND IS ESTIMATED TO BE 25 BILLION IN SALES WORLDWIDE THE NEW MACHINE WILL REPRESENT A NEW PLATFORM OF MEDICAL EQUIPMENT FOR THE 90S FOR GE SAID JOHN KESE GENERAL MANAGER OF GE'S GLOBAL ULTRASOUND OPERATION HE SAID THE COMPANY'S PUSH INTO ULTRASOUND WILL BE COMPARABLE TO ITS SUCCESSFUL DEVELOPMENT OF COMPUTED TOMOGRAPHY OR CT AND MRI MACHINES GE IS THE LEADING MANUFACTURER OF CT AND MRI EQUIPMENT PHILIPS AND SIEMENS ALSO ARE DETERMINED TO BECOME BIGGER PLAYERS IN ULTRASOUND PHILIPS YESTERDAY INTRODUCED AN ADVANCED ULTRASOUND MACHINE CAPABLE OF MEASURING BOTH VELOCITY AS WELL AS QUANTITY OF BLOOD FLOW AND A LOWCOST VERSION THAT DETECTS ONLY BLOOD FLOW BETWEEN VESSELS BOTH PRODUCTS ARE IN RESPONSE TO MEDICAL FACILITIES DEMANDING LOWCOST MACHINES IN THIS TIME OF COST CONTAINMENT SAID DENNIS PAUL MANAGER OF CLINICAL MARKETING FOR ULTRASOUND AT PHILIPS MEDICAL SYSTEMS A UNIT OF PHILIPS ULTRASOUND ALSO APPEARS ATTRACTIVE TODAY IN CONTRAST WITH MRI AND CT MARKETS THE GROWTH OF CT HAS SLOWED BECAUSE OF INROADS OF MRI BUT MRI IS NOW IN TROUBLE BECAUSE OF THE HIGH COST OF THE MACHINES THE HEALTHCARE REFORM LEGISLATION HAS PROMPTED A LOT OF DOCTORS TO PULL IN THEIR HORNS SAID MR DREW THE CONSULTANT FOR THIS AND OTHER REASONS US SALES OF MRI MACHINES ARE EXPECTED TO TUMBLE 25 THIS YEAR TO AN ESTIMATED 520 MILLION THE CT SEGMENT WHERE SALES ARE MOSTLY TO REPLACE EXISTING MACHINES IS EXPECTED TO HAVE 800 MILLION IN US SALES THIS YEAR IN CONTRAST THE US ULTRASOUND MARKET HAS BEEN GROWING AT 15 ANNUALLY THIS YEAR US SALES OF ULTRASOUND MACHINES ARE EXPECTED TO REACH 1 BILLION UP FROM 200 MILLION TO 300 MILLION IN 1980 MR DREW SAYS ULTRASOUND ALREADY HAS REPLACED MRI AND CT AS PREFERRED MODE FOR DIAGNOSTIC IMAGING IN SOME SITUATIONS AND WITH ITS ABILITY TO MAKE IMAGES OF MOVING ORGANS IT'S IN A POSITION TO CHALLENGE THE TURFS OF THE OTHER MACHINES IN A NUMBER OF AREAS MRI IN CARDIOLOGY AND CT IN ABDOMINAL IMAGING FOR INSTANCE MOREOVER ULTRASOUND CAN BE USED FOR EXPLORATORY IMAGING BEFORE DECIDING WHETHER MOREEXPENSIVE OR INVASIVE IMAGING SUCH AS CT SHOULD BE USED ULTRASOUND ALSO GOT A BOOST FROM A STUDY REPORTED YESTERDAY AT A MEETING IN CHICAGO OF THE RADIOLOGICAL SOCIETY OF NORTH AMERICA WHERE THE MANUFACTURERS INTRODUCED THEIR LATEST PRODUCTS RESEARCHERS REPORTED THAT HIGHDEFINITION ULTRASOUND TECHNOLOGY MADE BY ADVANCED TECHNOLOGY LABORATORIES PROVED BETTER THAN MAMMOGRAPHY AT IDENTIFYING BREAST CANCERS AND MAY REDUCE THE NEED FOR EXPENSIVE BIOPSIES BIOPSIES CAN COST FROM 800 TO 4000 WHILE ULTRASOUND SCANS COST ABOUT 150 ACCORDING TO THE STUDY WHICH WAS FUNDED BY ADVANCED TECHNOLOGY LABS THE BIG MEDICALIMAGING COMPANIES HAVE EYED ULTRASOUND TECHNOLOGY BEFORE BUT WITHOUT FULLSCALE COMMITMENT ONE REASON HAS BEEN THEIR PREFERENCE FOR BIGTICKET PRODUCTS LIKE THE CT SCANNERS AND MRI MACHINES WHICH OFFER THE PROMISE OF FAT PROFIT MARGINS DESPITE HUGE CAPITAL EXPENDITURES TO MANUFACTURE BUT THE BIG COMPANIES ALSO HAVE LACKED THE TECHNOLOGICAL AGILITY OF THEIR SMALL COMPETITORS HISTORICALLY LITTLE COMPANIES HAVE BEEN ABLE TO MOVE FASTER IN DEVELOPING NEW PRODUCTS SAID LEWIS EDELHEIT SENIOR VICE PRESIDENT OF CORPORATE RESEARCH AND DEVELOPMENT AT GE INDEED GE HAS ATTEMPTED BEFORE TO TEST THE ULTRASOUND MARKET WITH INHOUSE TECHNOLOGIES AS WELL AS THROUGH ACQUISITIONS OF ULTRASOUND COMPANIES GE PHILIPS AND SIEMENS ALL HAVE TAKEN A SHOT AT THIS THING SAID DR EDELHEIT BUT THIS TIME I THINK WE HAVE CHANGED THE GAME HE SAID REFERRING TO GE'S RESEARCH AND DEVELOPMENT BEHIND THE MACHINE IT INTRODUCED YESTERDAY HE SAID UNDER THE COMPANY'S NEW APPROACH TO DEVELOPING PRODUCTS BOUNDARYLESS TEAMS OF RESEARCHERS ENGINEERING AND MANUFACTURING STAFF WORKED TOGETHER ON THE PRODUCT COMPRESSING THE NORMAL FOURYEAR DEVELOPMENT CYCLE INTO TWO IT ILLUSTRATES SPEED AND MOVING QUICKLY IN THE MARKETPLACE HE SAID THEY WILL GET US IN THE GAME 9311300146 931130 OIL PRICES IN US SENT PLUNGING TO 5YEAR LOW JANUARY CRUDE OIL CLOSES DOWN 107 AT 1531 OPEC INACTION IS CITED BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE OILPRICE PLUNGE CONTINUED WITH US CRUDE OIL DROPPING MORE THAN 1 A BARREL REOPENING YESTERDAY AFTER THE THANKSGIVING HOLIDAY THE US OIL MARKET NOT ONLY CAUGHT UP WITH THE REST OF THE WORLD BUT WENT BEYOND IT IN PUSHING DOWN PRICES TO PUNISH THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FOR REFUSING TO CUT PRODUCTION US CRUDES HAD BEEN EXPECTED TO FALL AT LEAST 70 CENTS A BARREL TO GET BACK IN LINE WITH BEARISH MARKETS ELSEWHERE IN THE WAKE OF OPEC'S DONOTHING MEETING LAST WEEK PRICES ENDED UP FALLING AN ADDITIONAL 30 CENTS OR MORE TO THE LOWEST LEVELS IN FIVE YEARS OTHER FUEL PRICES WERE ALSO DOWN SHARPLY UNLEADED GASOLINE FOR JANUARY DELIVERY DROPPED NEARLY THREE CENTS A GALLON ON THE NEW YORK MERCANTILE EXCHANGE BUYERS WERE SCARCE THIS IS A VICIOUS BRUTAL MARKET SAID JACK O'DEA MANAGER OF ENERGY FUTURES FOR DEAN WITTER DISCOVER INC FALLING OIL PRICES COULD HELP KEEP INFLATION IN CHECK AND ALLOW FOR CONTINUED LOW INTEREST RATES TRANSPORTATION STOCKS SURGED ON THE DROP IN OIL PRICES WITH THE DOW JONES TRANSPORTATION AVERAGE CLOSING JUST SHY OF ITS RECORD LEVEL PRECIOUSMETAL PRICES TUMBLED IN OTHER TRADING ON THE NEW YORK MERC THE FUTURES PRICE OF CRUDE OIL FOR JANUARY DELIVERY FELL AS LOW AS 1510 A BARREL BEFORE SETTLING AT 1531 A BARREL DOWN 107 FOR THE DAY AND THE LOWEST CLOSE SINCE NOVEMBER 1988 LAST WEDNESDAY JUST BEFORE THE EXCHANGE CLOSED FOR THE HOLIDAY AND MINUTES BEFORE THE OPEC MEETING ENDED IN VIENNA FEVERISH TRADING HAD DRIVEN JANUARY CRUDE DOWN BY 25 CENTS A BARREL WITH YESTERDAY'S TRADING THIS CONTRACT HAS LOST 132 A BARREL MORE THAN EXPECTED BECAUSE OF OPEC'S FAILURE TO REDUCE OUTPUT FROM THE CURRENT PRODUCTION CEILING OF 245 MILLION BARRELS A DAY OPEC MADE A TRAGIC MISTAKE BY NOT CUTTING PRODUCTION ONE MILLION BARRELS A DAY SAID WILLIAM H BROWN III WHO HEADS WH BROWN & CO A PETROLEUM RESEARCH FIRM IN NEW YORK EXCLUDING ADJUSTMENTS FOR INFLATION OIL STILL IS VALUED SUBSTANTIALLY HIGHER THAN IT WAS DURING THE 1986 PRICE COLLAPSE WHEN WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE FELL AS LOW AS 10 A BARREL MOST CRUDES HELD ABOVE 15 A BARREL YESTERDAY ALTHOUGH SOME PETROLEUM REFINERS CUT THE PRICES THEY WERE WILLING TO PAY PRODUCERS FOR THE WEST TEXAS CRUDE BELOW THAT PSYCHOLOGICALLY IMPORTANT LEVEL IN AT LEAST ONE CASE ACCORDING TO DOW JONES INTERNATIONAL PETROLEUM REPORT THE NEW SOCALLED FIELD POSTING WAS 13 A BARREL ONE OF THE LOWEST PRICES FOR THE WEST TEXAS CRUDE SINCE 1988 PRICES ALSO FELL AGAIN IN OTHER WORLD OIL MARKETS ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE OIL CLOSED AS MUCH AS 37 CENTS A BARREL LOWER THIS BENCHMARK NORTH SEA CRUDE USUALLY LAGS BEHIND THE WEST TEXAS CRUDE BY 1 OR MORE A BARREL THE JANUARY BRENT CONTRACT BRIEFLY FELL BELOW 14 YESTERDAY BEFORE ENDING AT 1422 DOWN 26 CENTS THE OPEC PRICE MEASUREMENT A BASKET OF SEVEN CRUDES ALSO IS DECLINING FAST YESTERDAY'S BASKET AVERAGE WASN'T IMMEDIATELY AVAILABLE BUT IT USUALLY LAGS SOME 2 A BARREL OR MORE BEHIND THE US WEST TEXAS CRUDE THE LATEST BASKET PRICE RELEASED BY OPEC WAS FOR FRIDAY WHEN IT AVERAGED 1355 A BARREL THAT IS WELL BELOW THE AVERAGE OF 1668 FOR THE YEAR TO DATE AND NEARLY 750 A BARREL BELOW THE OPEC TARGET OF 21 MOST TRADERS HAD EXPECTED OPEC TO MAKE AT LEAST SOME PRODUCTION CUTS WHEN THE MINISTERS MET LAST WEEK BECAUSE OF THE GLUTTED OIL MARKETS THEY REMAINED PUZZLED YESTERDAY BY THE LACK OF ACTION EVERY TIME IN THE PAST THAT THE BASKET WAS UNDER 15 WE'VE SEEN OPEC MEMBERS COME TOGETHER AND RALLY PRICES HIGHER SAID PETER BEUTEL TRADER AND ENERGY ANALYST WITH BRODY WHITE & CO SPECULATION AROSE YESTERDAY THAT THE INCREASING ECONOMIC PAIN ON OPEC WILL FORCE IT TO CALL AN EMERGENCY MEETING SOON TO DEAL WITH THE DETERIORATING OIL MARKET BUT NORMAN HIGBY A MENLO PARK CALIF ENERGY FORECASTER PREDICTS THAT THE BASKET PRICE WILL HAVE TO FALL TO 11 OR 12 A BARREL BEFORE THAT HAPPENS 9311300145 931130 TECHNOLOGY & HEALTH AMA DECRIES EXPANDING NURSES' DUTIES AS PROPOSED IN CLINTON HEALTHCARE BILL BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL TRUSTEES OF THE AMERICAN MEDICAL ASSOCIATION ASSAILED THE IDEA THAT NURSES CAN REPLACE SOME DOCTORS AND PLAY A BIGGER ROLE IN PRIMARY HEALTH CARE THEIR VIEWS CONTAINED IN A 30PAGE REPORT SIGNAL A NEW POTENTIAL BATTLEGROUND IN THE DEBATE OVER HEALTHSYSTEM REFORM THE CONFLICT PITS THE LARGEST DOCTORS' ASSOCIATION AGAINST THE WHITE HOUSE AND THE AMERICAN NURSES ASSOCIATION THE BIGGEST NURSES' PROFESSIONAL SOCIETY THE CLINTON ADMINISTRATION THIS YEAR REPEATEDLY HAS CALLED FOR EXPANDING NURSES' DUTIES AS A WAY TO CUT COSTS AND TO INCREASE MEDICAL CARE IN UNDERSERVED AREAS THE MASSIVE CLINTON HEALTHREFORM BILL INCLUDES SPECIFIC PROVISIONS TO REMOVE BARRIERS THAT CURRENTLY LIMIT THE ROLE OF ADVANCEDPRACTICE NURSES MANY DOCTORS HOWEVER HAVE VIEWED GAINS FOR NURSES AS POTENTIAL LOSSES FOR THEMSELVES AND THEIR PATIENTS AS THE NURSES' CAUSE HAS GAINED GROUND THE AMA HAS SHOWN INCREASED INTEREST IN THE ISSUE THE TRUSTEES' REPORT WHICH IS TO BE SUBMITTED AT THE AMA'S CONVENTION IN NEW ORLEANS NEXT WEEK INCORPORATES SOME LONGSTANDING AMA DOUBTS ABOUT NURSES' RANGE OF DUTIES BUT PUTS THOSE CONCERNS IN UNUSUALLY FORCEFUL LANGUAGE QUALITY MEDICAL CARE REQUIRES THAT A PHYSICIAN BE RESPONSIBLE FOR THE OVERALL CARE OF EACH AND EVERY PATIENT THE TRUSTEES WROTE IT IS IRRATIONAL TO JEOPARDIZE PATIENT SAFETY OR QUALITY OF CARE BY ALLOWING UNSUPERVISED NURSES TO PRACTICE AMONG THE AMA TRUSTEES' CONCERNS THOSE VIEWS DREW A QUICK RIPOSTE FROM VIRGINIA TROTTER BETTS PRESIDENT OF THE AMERICAN NURSES ASSOCIATION I'M DISAPPOINTED IN THE AMA SHE SAID SHE SAID THAT NURSES' QUALITY OF CARE IS HIGH AS EVIDENCED BY MALPRACTICE CLAIMS THAT ARE MUCH RARER THAN THOSE AGAINST DOCTORS SHE SAID THAT IF DOCTORS' MONOPOLY ON PATIENT CARE IS ENDED PATIENTS WILL BE MORE INTERESTED IN SEEING NURSES AND THAT MORE NURSES WILL PURSUE EDUCATION THAT WOULD ALLOW THEM TO PRESCRIBE MEDICINE THIS IS ALL ABOUT CONTROL MS BETTS ASSERTED ESPECIALLY CONTROL OF THE REVENUE STREAM THEY WANT PHYSICIAN SUPERVISION WHERE THE PHYSICIAN GETS THE FIRST DOLLAR SHE SAID SHE HAS TRIED TO WORK WITH AMA LEADERS ON A JOINT RESPONSE TO HEALTH REFORM BUT HAS BEEN REBUFFED THE AMA AND NURSES' GROUPS SAID THEY FAVOR COLLABORATION BETWEEN DOCTORS AND NURSES BUT THERE APPEARS TO BE LITTLE AGREEMENT ABOUT HOW THAT SHOULD WORK SOME OF THE TOUGHEST ISSUES INVOLVE ADVANCEDPRACTICE NURSES WHO HAVE MASTERS' DEGREES AND EXTRA TRAINING IN AREAS SUCH AS DELIVERING BABIES ANESTHETIZING PATIENTS OR PRESCRIBING DRUGS EVEN IN PRIMARY CARE WHERE THE INCOME GAP IS NARROWEST DOCTORS GENERALLY MAKE MORE THAN 110000 A YEAR WHILE THE MOST ADVANCED NURSES SELDOM TOP 75000 DOCTORS SAY SUCH GAPS ARE JUSTIFIED BY YEARS IN MEDICAL SCHOOL INTERNSHIPS AND RESIDENCY PROGRAMS ADVANCEDPRACTICE NURSES ARE LESS COMFORTABLE WITH WIDE DISPARITIES SOME LEADING HOSPITALS ARE MOVING TO EXPAND NURSES' FUNCTIONS BETH ISRAEL HOSPITAL IN BOSTON IS PREPARING TO AMEND ITS BYLAWS SO NURSE/MIDWIVES CAN ADMIT PATIENTS NEW YORK'S COLUMBIA PRESBYTERIAN MEDICAL CENTER SAYS IT WILL LAUNCH A PROGRAM NEXT YEAR IN WHICH 14 NURSEPRACTITIONERS WILL BE IN CHARGE OF SEVERAL THOUSAND HEALTHPLAN MEMBERS WITH AUTHORITY TO PRESCRIBE MEDICINE AND ADMIT PATIENTS TO THE HOSPITAL 9311300144 931130 INTERNATIONAL BRITAIN'S QUEENS MOAT MAY FACE TAKEOVER OF SOME PROPERTIES SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH HOTELIER QUEENS MOAT HOUSES PLC IS IN DANGER OF HAVING CERTAIN PROPERTIES TAKEN OVER BY A TRUSTEE A MOVE THAT IT SAID COULD RESULT IN THE COMPANY'S INSOLVENCY COMPANY OFFICIALS TOLD SHAREHOLDERS YESTERDAY THAT IT HAS DEFAULTED ON TRUST DEEDS RELATED TO TWO DEBENTURE STOCKS OUTSTANDING WITH A PRINCIPAL AMOUNT OF 215 MILLION 3182 MILLION CONSEQUENTLY THE TRUSTEE COULD TAKE CONTROL OF CERTAIN SECURED PROPERTIES THE OFFICIALS SAID AT A RECONVENED ANNUAL MEETING THE COMPANY HAS CALLED MEETINGS OF DEBENTURE HOLDERS TODAY THIS IS A VITALLY IMPORTANT MATTER FOR THE GROUP CHAIRMAN STANLEY METCALFE TOLD SHAREHOLDERS A TAKEOVER COULD BE AVERTED IF THE DEFAULT IS WAIVED HOWEVER MR METCALFE SAID IT'S NOT PRACTICAL TO GET A WAIVER UNTIL QUEENS MOAT HAS A FULL RECONSTRUCTION PLAN MR METCALFE IS ASKING THE DEBENTURE HOLDERS TO DIRECT THE TRUSTEE TO HOLD OFF ON A TAKEOVER AND ALLOW DIRECTORS TIME TO FORMULATE PROPOSALS TO THE HOLDERS AS PART OF AN OVERALL RESTRUCTURING PROGRAM MEANWHILE MR METCALFE IS CONTINUING TO PAY INTEREST ON THE DEBENTURE STOCKS QUEENS MOAT SHARES HAVE BEEN SUSPENDED FROM TRADING ON THE LONDON STOCK EXCHANGE SINCE MARCH 31 WHEN THE COMPANY FOUND IT COULDN'T MEET ITS BANK PAYMENTS LOSSES REVEALED AT THE TIME RESULTED IN THE RESIGNATION OF THE BOARD THE DEFAULT ANNOUNCED YESTERDAY OCCURRED BECAUSE AN AUDIT SHOWED THAT THE PROPERTIES SECURING THE DEBENTURES WERE VALUED AT ONLY 67 OF THE PRINCIPAL AMOUNT OF THE DEBENTURES THE COMPANY SAID THEIR TRUST DEEDS REQUIRE THAT THE VALUE OF THE SECURED PROPERTIES BE AT LEAST 150 OF THEIR NOMINAL VALUE BECAUSE OF ARRANGEMENTS WITH ITS BANKS QUEENS MOAT CAN'T USE ADDITIONAL ASSETS TO SECURE THE DEBENTURES 9311300143 931130 SEAGATE PLANS PRIVATE PLACEMENT SCOTTS VALLEY CALIF SEAGATE TECHNOLOGY INC SAID IT PLANS TO RAISE AS MUCH AS 2875 MILLION THROUGH A PRIVATE PLACEMENT OF CONVERTIBLE SUBORDINATED DEBENTURES WITH INSTITUTIONAL INVESTORS THE OFFERING EXPECTED TO BE COMPLETED BEFORE YEAR END IS AIMED AT STENGTHENING THE COMPANY'S FINANCIAL POSITION AND GIVING IT FLEXIBILITY TO TAKE ADVANTAGE OF NEW BUSINESS OPORTUNITIES THE DISKDRIVE MAKER SAID 9311300142 931130 CONSTRUCTION WORK ROSE 1 IN OCTOBER DODGE INDEX FINDS BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONSTRUCTION CONTRACTING GREW A SCANT 1 IN OCTOBER AS AN INCREASE IN NONRESIDENTIAL BUILDING OFFSET A SHARP DROP IN NONBUILDING CONSTRUCTION ACCORDING TO FW DODGE THE FORECASTING UNIT OF MCGRAWHILL INC THE REPORT SAID THE DODGE INDEX ROSE ON A SEASONALLY ADJUSTED BASIS TO 103 UP FROM SEPTEMBER'S REVISED READING OF 102 THE INDEX MEASURES THE SEASONALLY ADJUSTED RATE OF TOTAL CONSTRUCTION USING THE AVERAGE MONTHLY RATE THAT OCCURRED IN 1987 AS A BASE OF 100 THOUGH OCTOBER'S SEASONALLY ADJUSTED GAIN WAS MODEST IT IS A FURTHER SIGN THAT CONSTRUCTION HAS MOVED BEYOND ITS LACKLUSTER FIRST HALF SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS FOR DODGE THE REPORT NOTED THAT CONSTRUCTION CONTRACTS HAVE RISEN 3 SINCE THE FIRST HALF GREATER SUPPORT FROM NONRESIDENTIAL BUILDING THE PATTERN SHOWN DURING OCTOBER IS JUST WHAT IS NEEDED TO KEEP THE RECOVERY GOING THROUGH 1994 MR MURRAY ADDED NONRESIDENTIAL CONSTRUCTION IN OCTOBER JUMPED 13 SEASONALLY ADJUSTED TO 908 BILLION FROM 8069 BILLION IN SEPTEMBER FOLLOWING A SURGE OF MANUFACTURINGRELATED PROJECTS SUCH AS A LARGE PETROLEUM REFINERY IN CALIFORNIA AND A SEMICONDUCTOR PLANT IN TEXAS THE REPORT SAID INSTITUTIONAL BUILDINGS SUCH AS EDUCATIONAL HOSPITAL AND HEALTH FACILITIES CLIMBED MODERATELY FROM SEPTEMBER'S WEAK LEVEL WHILE STORE CONSTRUCTION RETREATED FROM THE STRENGTH SHOWN IN RECENT MONTHS RESIDENTIAL CONSTRUCTION SLID 2 TO 12384 BILLION SEASONALLY ADJUSTED THE FIRST DECLINE AFTER A STEADY IMPROVEMENT OVER THE PREVIOUS FOUR MONTHS SINGLEFAMILY HOUSING SLIPPED 1 WHILE THE MULTIFAMILY SIDE TOOK A HARDER DIVE OF 11 NONBUILDING CONSTRUCTION FELL 10 TO AN ADJUSTED 5304 BILLION AS SEWER AND WATERSUPPLY PROJECTS TUMBLED 25 FROM LAST MONTH HIGHWAY AND BRIDGE CONSTRUCTION ALSO LOST MOMENTUM FROM HEALTHY INCREASES DURING THE FIRST EIGHT MONTHS ON AN UNADJUSTED BASIS TOTAL CONTRACT VALUE IN THE FIRST 10 MONTHS WAS 22321 BILLION 3 ABOVE THE YEAREARLIER PERIOD MOST OF THE GROWTH WAS IN THE SOUTH WITH THE SOUTH CENTRAL SHOWING A 10 INCREASE AND THE SOUTH ATLANTIC POSTING A 7 RISE THE MIDWEST WAS UP 2 WHILE THE WEST ROSE A MEAGER 1 AND THE NORTHEAST FELL 2 9311300141 931130 INTERNATIONAL BELGIAN INFLATION DROPS SLIGHTLY BRUSSELS BELGIUM'S YEARTOYEAR INFLATION WAS A PRELIMINARY 253 IN NOVEMBER COMPARED WITH 272 IN OCTOBER AND 223 A YEAR EARLIER THE BELGIAN GOVERNMENT SAID 9311300139 931130 WHO'S NEWS KEYCORP AND SOCIETY NAME MANAGEMENT FOR MERGED COMPANY A WALL STREET JOURNAL NEWS ROUNDUP KEYCORP AND SOCIETY CORP NAMED A MANAGEMENT COMMITTEE FOR THE MERGED COMPANY YESTERDAY WITH SOCIETY MEMBERS OUTNUMBERING KEYCORP MEMBERS BY FOUR TO THREE ALSO SOCIETY WILL PROVIDE THE MERGED COMPANY'S CHIEF FINANCIAL OFFICER THE UNEVEN NUMBER OF MEMBERS FROM EACH COMPANY SHOWS YOU'RE GOING TO SEE A LITTLE BIT MORE OF THE SOCIETY CULTURE THAN THE KEYCORP CULTURE IN THE MERGED COMPANY SAID BROWN BROTHERS HARRIMAN & CO ANALYST NANCY A BUSH THE MERGER IS SCHEDULED TO BE COMPLETED BY THE FIRST QUARTER OF 1994 THE NEW COMPANY WHICH WILL BE CALLED KEYCORP WILL BE BASED IN SOCIETY'S HOMETOWN OF CLEVELAND KEYCORP IS CURRENTLY BASED IN ALBANY NY THE MANAGEMENT COMMITTEE IS MADE UP OF SEVEN OF THE 18 MEMBERS OF THE MERGED COMPANY'S SENIOR MANAGEMENT TEAM WHICH WAS ANNOUNCED TO ANALYSTS ON OCT 4 THE TEAM INCLUDES NINE EXECUTIVES FROM EACH COMPANY JAMES W WERT 47 YEARS OLD WILL OVERSEE FINANCE AT THE MERGED COMPANY HE'S CURRENTLY SOCIETY'S CHIEF FINANCIAL OFFICER AND ONE OF THE COMPANY'S THREE VICE CHAIRMEN GARY R ALLEN KEYCORP'S CHIEF BANKING OFFICER AND HENRY L MEYER III SOCIETY'S CHIEF BANKING OFFICER WILL BOTH SERVE AS GROUP EXECUTIVES FOR BANKING IN THE MERGED COMPANY MR ALLEN 45 IS CURRENTLY A KEYCORP EXECUTIVE VICE PRESIDENT MR MEYER 43 YEARS OLD IS CURRENTLY A SOCIETY VICE CHAIRMAN SOCIETY'S OTHER VICE CHAIRMAN ROGER NOALL 58 WILL BE RESPONSIBLE FOR ADMINISTRATION IN THE MERGED COMPANY HE'S NOW CHIEF ADMINISTRATIVE OFFICER OF SOCIETY CARTER B CHASE 58 NOW KEYCORP'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL WILL BE IN CHARGE OF LEGAL AFFAIRS THE COMMITTEE ALSO INCLUDES EACH BANK'S CURRENT CHAIRMAN AS REPORTED KEYCORP CHAIRMAN VICTOR J RILEY JR 62 WILL BE CHAIRMAN AND CHIEF EXECUTIVE OF THE NEW COMPANY SOCIETY CORP CHAIRMAN ROBERT W GILLESPIE 49 WILL BE PRESIDENT AND CHIEF OPERATING OFFICER 9311300138 931130 ECONOMY ECONOMISTS LIFT THEIR FORECASTS FOR 4TH QUARTER GROWTH RATE OVER 4 SEEN AS CONSUMER SPENDING INVESTMENT STRENGTHEN BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANY ECONOMISTS ARE RAISING THEIR EXPECTATIONS FOR GROWTH IN THE FOURTH QUARTER CONFIDENT THAT CONSUMER SPENDING AND BUSINESS INVESTMENT WILL GIVE THE ECONOMY A SIZABLE BOOST MANY OF THE FORECASTERS NOW SEE THE ECONOMY GROWING AT BETTER THAN A 4 ANNUAL RATE IN THE LAST THREE MONTHS OF THE YEAR M KATHRYN EICKHOFF A NEW YORK ECONOMIC CONSULTANT PREDICTS 41 GROWTH MERRILL LYNCH & CO IS FORECASTING A SOLID 42 AND CJ LAWRENCE SEES 45 GROWTH THAT'S SUBSTANTIALLY BETTER THAN ECONOMISTS WERE PREDICTING JUST A COUPLE OF MONTHS AGO AND A MARKED IMPROVEMENT FROM THE PAST THREE QUARTERS THE ECONOMY GREW AT A 28 RATE IN THE THIRD QUARTER 19 IN THE SECOND AND 08 IN THE FIRST THERE HAS BEEN AN UNLEASHING OF PENTUP DEMAND AFTER THREE YEARS OF CAUTION SAYS MARK ZANDI CHIEF ECONOMIST OF REGIONAL FINANCIAL ASSOCIATES IN WEST CHESTER PA PEOPLE ARE BECOMING MORE COMFORTABLE WITH THE ECONOMY THE FIRM HAS INCREASED ITS FORECAST FOR THE FOURTHQUARTER GROWTH RATE TO 39 FROM 32 WE'VE HAD 10 QUARTERS OF GROWTH OUR LAST SEVEN AVERAGED 3 THIS IS OUR FIRST ANTICIPATED GOOD QUARTER SAYS DAVID MULLINS VICE CHAIRMAN OF THE FEDERAL RESERVE BOARD DESPITE THE ROSIER PROJECTIONS FOR THE FOURTH QUARTER MANY ANALYSTS ARE EXPECTING THE ECONOMY TO COOL OFF IN THE FIRST PART OF NEXT YEAR THAT WOULD CONTINUE A DISCONCERTING PATTERN OF THIS RECOVERY IN WHICH THE ECONOMY LURCHES FORWARD FOR A QUARTER OR TWO ONLY TO SLOW SAYS WILLIAM DUNKELBERG PRESIDENT OF THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS IN THE LAST QUARTER OF 1992 THE ECONOMY HAD A BURST OF GROWTH AND THEN SLOWED SHARPLY AT THE START OF 1993 BUT THIS TIME AROUND ECONOMISTS DON'T EXPECT THE SLOWDOWN TO BE AS SEVERE ANALYSTS HAVE BECOME MORE CONFIDENT ABOUT THE STRENGTH OF THE QUARTER THAT ENDS DEC 31 FOR A VARIETY OF REASONS ORDERS FOR DURABLE GOODS HAVE BEEN UP FOR THREE OF THE PAST FOUR MONTHS SALES OF NEW AND EXISTING HOMES HAVE BEEN STRONG AND THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX SUGGESTS THAT THE MANUFACTURING SECTOR IS IMPROVING EDWARD YARDENI CHIEF ECONOMIST OF CJ LAWRENCE FORECASTS THAT CONSUMER PURCHASES OF DURABLE GOODS SUCH AS CARS WILL JUMP 136 IN THE FOURTH QUARTER AFTER GROWING MORE THAN 7 IN THE THIRD THE INCREASED DEMAND FOR AUTOS WILL GIVE AUTO PRODUCTION A BOOST AND HELP SPUR OUTPUT IN A MYRIAD OF AUTORELATED PRODUCTS SUCH AS RUBBER GLASS AND PLASTIC ECONOMISTS ARE ALSO EXPECTING INVESTMENT TO GROW BRISKLY IN OTHER SECTORS DRIVEN BY LOW INTEREST RATES SUCH AS NEW HOMES AND BUSINESS INVESTMENT IN CAPITAL EQUIPMENT THE LATEST QUARTERLY SURVEY OF 46 FORECASTERS BY THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS RELEASED YESTERDAY FINDS A MEDIAN FOURTHQUARTER FORECAST OF 33 BUT MR DUNKELBERG SAYS HE SUSPECTS THAT MEDIAN FORECAST WILL PROVE TO BE ON THE LOW SIDE HE SAID THAT THE DOZEN MOST OPTIMISTIC FORECASTERS EXPECT GROWTH AT A 45 RATE IN THE QUARTER THE LEAST OPTIMISTIC SEE IT AT 25 THE UPBEAT FORECASTS FOR GROWTH HOWEVER HAVEN'T BEEN MATCHED WITH BETTER ESTIMATES FOR EMPLOYMENT THE ASSOCIATION'S ECONOMISTS EXPECT ONLY A GRADUAL AND MODEST DECLINE IN THE UNEMPLOYMENT RATE WHICH WAS 68 IN OCTOBER STUART HOFFMAN CHIEF ECONOMIST FOR PNC BANK CORP ESTIMATES FOURTHQUARTER GROWTH WILL REACH A 4 RATE BUT SAYS INCREASES IN EMPLOYMENT WILL STILL HOVER AROUND 175000 JOBS A MONTH PRODUCTIVITY IS STILL A BIG FACTOR MR HOFFMAN SAYS MANUFACTURERS ARE NOT GOING TO BE QUICK TO HIRE THE PHILADELPHIA FEDERAL RESERVE BANK'S QUARTERLY SURVEY OF 34 PRIVATE FORECASTERS ALSO RELEASED YESTERDAY FOUND A MEDIAN FORECAST FOR THE FOURTH QUARTER OF 35 UP FROM A 32 PREDICTION FOR THE PERIOD MADE THREE MONTHS AGO THE FORECASTERS' INFLATION OUTLOOK IS ALSO IMPROVING OVER THE NEXT FIVE QUARTERS THE PHILADELPHIA FED'S PANEL SEES THE CONSUMER PRICE INDEX INCREASING AT A 3 RATE COMPARED WITH THE 33 FOURTHQUARTER PROJECTION MADE THREE MONTHS AGO OVER THE NEXT DECADE THEY EXPECT INFLATION TO AVERAGE 345 A YEAR THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS' SURVEY FINDS INFLATION FORECASTS HOVERING AROUND 3 FOR THIS YEAR AND 31 FOR NEXT YEAR 9311300137 931130 WHO'S NEWS GENERAL GROWTH PROPERTIES INC GENERAL GROWTH PROPERTIES INC DES MOINES IOWA GARY SUMERS 40 YEARS OLD AND FORMERLY MANAGING DIRECTOR OF JMB INSTITUTIONAL REALTY CORP CHICAGO WAS NAMED CHIEF OPERATING OFFICER OF THIS REALESTATE CONCERN BERNARD FREIBAUM 41 FORMERLY WITH AMERICAN INVSCO CORP WAS NAMED CHIEF FINANCIAL OFFICER BOTH ARE NEW POSITIONS 9311300136 931130 SMELLY SOCKS AND OTHER TRICKS FROM THE PUBLICRELATIONS TRADE BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOST PUBLICRELATIONS FIRMS GET UPSET IF CLIENTS THINK THEIR IDEAS ARE NUTTY NOT JERICHO PROMOTIONS CLIENTS OFTEN REJECT JERICHO'S IDEAS SUCH AS HAVING A VIDEO CHAIN OFFER FREE RENTALS OF THE MOVIE DRACULA TO ANYONE WHO HAS GIVEN BLOOD SOMETIMES WE PUSH THE ENVELOPE TOO FAR CONCEDES ERIC YAVERBAUM THE FIRM'S 32YEAROLD COFOUNDER HE THINKS OFFTHEWALL PROMOTIONS SET JERICHO APART BUT HE ADMITS THERE ARE PEOPLE WHO WOULD BE OFFENDED BY SOME OF OUR IDEAS BRITISH KNIGHTS INC THE SNEAKERS DIVISION OF JACK SCHWARTZ SHOES REJECTED JERICHO'S SUGGESTION TO SEND FREE SNEAKERS TO CHILDREN WHO SEND IN REAL GUNS IT WAS A BAD IDEA AND WOULD HAVE HURT OUR IMAGE SAYS LARRY SCHWARTZ EXECUTIVE VICE PRESIDENT OF BRITISH KNIGHTS BUT BRITISH KNIGHTS LIKED THE WORLD'S SMELLIEST SOCKS CONTEST IN WHICH 4600 PEOPLE SENT IN STINKY STOCKINGS FOR A CHANCE TO WIN FREE SNEAKERS DOMINO PIZZA ANN ARBOR MICH TURNED DOWN A FREEPIZZAFORBLIMPVICTIMS IDEA WHICH JERICHO SUGGESTED AFTER A BLIMP ADVERTISING THE PIZZA HUT BRAND CRASHED ON A NEW YORK APARTMENT HOUSE WE CARE HAIR A CHICAGOBASED BEAUTYPARLOR FRANCHISE CHAIN DROPPED JERICHO'S IDEA FOR A GOSSIP METER IN WHICH STYLISTS RECOUNTED THEIR CUSTOMERS' SMALL TALK JERICHO FOUND THAT WOMEN ARE FIVE TIMES MORE LIKELY THAN MEN TO TALK ABOUT THEIR PERSONAL LIVES MR YAVERBAUM SAYS THE PR FIRM SAW THE METER AS A MEANS TO GET WE CARE ON RADIO TALK SHOWS BUT THE COMPANY FELT THAT INTERVIEWS FOCUSED TOO MUCH ON GOSSIP AND NOT ENOUGH ON ITS BUSINESS STILL SOME OF JERICHO'S PROMOTIONS HAVE WORKED THE FIRM GOT KEN HUKUTA WHO IMPORTED THE WACKY WALLWALKER TOY ON MANY TALK SHOWS PARTLY BY RENAMING HIM DR FAD EVEN 60 MINUTES PROFILED HIM AFTER JERICHO UNLEASHED A BLIZZARD OF NEWS RELEASES FOR THE BEATNIK FLIES ROLLING STONE MAGAZINE CALLED THE WASHINGTON DC BAND ONE OF THE NATION'S HOTTEST BEFORE IT HAD EVER PLAYED A GIG JERICHO'S TACK LURES OFFBEAT CLIENTS IT EVEN GOT TV TIME FOR UNKNOWN AUTHORS OF A HOWTO BOOK CALLED CHEAP WITH CLASS IS JERICHO WORRIED ABOUT ITS OWN IMAGE NOT REALLY SAYS MR YAVERBAUM WHO MET HIS PARTNER JONATHAN SAWYER AS A CHILD AT CAMP NOCKAMIXON IN EASTON PA TO GET ATTENTION YOU HAVE TO HIT THE PUBLIC ON THE HEAD WITH A FRYING PAN 9311300135 931130 BUSINESS BRIEF EQUITABLE TO INJECT LIFEINSURANCE UNIT WITH 800 MILLION NEW YORK EQUITABLE COS PLANS TO INJECT 800 MILLION INTO ITS LIFEINSURANCE UNIT BY PURCHASING A 61 STAKE IN DONALDSON LUFKIN & JENRETTE INC THE INVESTMENTBANKING FIRM HELD BY THE UNIT THE PLAN ESSENTIALLY WILL ALLOW EQUITABLE COS TO INCREASE THE AVAILABLE RISKBASED CAPITAL AT ITS EQUITABLE LIFE ASSURANCE SOCIETY OF THE US UNIT WITH MINIMAL EARNINGS DILUTION TO THE PARENT COMPANY'S COMMON STOCK THIS IS REALLY A CONTINUATION OF THE COMPANY'S EFFORT TO IMPROVE THE CAPITAL SITUATION AT THE LIFEINSURANCE UNIT SO WHEN RISKBASED RATIOS ARE PUBLISHED AT YEAR END EQUITABLE LIFE WILL LOOK ALL RIGHT SAID MARGARET ALEXANDRE AN ANALYST WITH SALOMON BROTHERS INC WHO RECOMMENDS EQUITABLE COS BUT IN ITS MOST RECENT FILING THE COMPANY BACKED OFF ITS PREVIOUS TIMETABLE SAYING MANAGEMENT IS CONSIDERING THE POSSIBILITY OF AN INITIAL PUBLIC OFFERING OF THE COMMON STOCK OF DLJ WITHOUT SPECIFYING A TIMETABLE UNDER ITS PLAN EQUITABLE COS WILL ISSUE 304 MILLION OF SENIOR NOTES THROUGH A PRIVATE PLACEMENT THAT MONEY WILL BE LENT TO A TRUST FUND ESTABLISHED BY THE COMPANY THE TRUST IN TURN WILL PURCHASE 300 MILLION OF CONVERTIBLE PREFERRED STOCK FROM EQUITABLE COS BY USING A TRUST FUND SIMILAR TO A LEVERAGED EMPLOYEE STOCKOWNERSHIP PLAN EQUITABLE COS CAN RAISE FUNDS WITHOUT INCREASING ITS DEBT ANALYSTS SAID THE PREFERRED WILL BE USED TO FUND EMPLOYEEBENEFIT PLANS OVER THE NEXT 10 YEARS THE COMPANY INTENDS TO COMBINE THE 300 MILLION FROM THE SALE OF PREFERRED TO THE TRUST WITH ABOUT 500 MILLION REMAINING FROM PREVIOUS TRANSACTIONS TO PURCHASE THE STAKE IN DLJ EQUITABLE LIFE WILL CONTINUE TO HOLD A 39 INTEREST IN DLJ BY SELLING THE DLJ STAKE TO ITS PARENT COMPANY EQUITABLE LIFE WILL INCREASE ITS RISKBASED CAPITAL SIGNIFICANTLY UNDER REGULATORY GUIDELINES EQUITABLE LIFE CAN USE ONLY 70 OF THE VALUE IT RECORDS FOR INVESTMENTS IN SECURITIES COMPANIES IN CALCULATING RISKBASED CAPITAL LEVELS IN NEW YORK STOCK EXCHANGE TRADING EQUITABLE COS SHARES CLOSED AT 25 UP 50 CENTS 9311300134 931130 TRACKING TRAVEL BY NEELA BANERJEE EVEN 30000 FEET ABOVE THE NEAREST MALL AMERICANS JUST CAN'T STOP SHOPPING INFLIGHT SHOPPING PURVEYORS SKYMALL OF PHOENIX AND AMERISHOP OF GRAND RAPIDS MICH REPORT HEALTHY INCREASES IN REVENUES AS PASSENGERS REACH MORE OFTEN FOR THOSE GLOSSY CATALOGS IN SEAT BACKS SKYMALL WHOSE CLIENTS INCLUDE DELTA UNITED AND CONTINENTAL AMONG AIRLINES AND MOST RECENTLY AMTRAK SAYS SALES SHOULD TOP 30 MILLION THIS YEAR COMPARED WITH 6 MILLION TWO YEARS AGO AMERISHOP SAYS ITS AIRLINE CATALOG SALES ARE SUBSTANTIALLY LARGER THAN TWO YEARS AGO BOREDOM IS THE BIGGEST IMPETUS TO SPENDING ACCORDING TO A SKYMALL CUSTOMER SURVEY FOLLOWED BY THE CONVENIENCE OF CATALOG SHOPPING WHEN YOU'RE SITTING ON AIRPLANES YOU'RE A CAPTIVE AUDIENCE SAYS JIM PILCHER A MANAGER FOR GTE'S GTE AIRFONE TELEPHONE SYSTEM THAT PASSENGERS USE TO PLACE ORDERS FREQUENT TRAVELERS HAVE NO TIME TO SHOP AND THEY MAY WANT TO SEND SOMETHING TO THEIR FAMILY AMERISHOP TYPICALLY DELIVERS ITEMS IN FOUR DAYS SKYMALL OFFERS AIRPORT DELIVERY UPON ARRIVAL IN SEVEN CITIES AND SAMEDAY DELIVERY NEARLY EVERYWHERE ELSE IN THE US WE WANT TO BREAK THE ONEDAY BARRIER SAYS ROBERT WORSLEY SKYMALL CHIEF EXECUTIVE OR ELSE PEOPLE WILL JUST PICK UP SOMETHING IN THE MALL SKYMALL'S CATALOG OF CATALOGS FEATURES SECTIONS BY SUCH MERCHANDISERS AS HAMMACHER SCHLEMMER AND SYBERVISION EDGING OUT LANGUAGE TAPES AND PERSONAL PAPER SHREDDERS SKYMALL'S BESTSELLING ITEM IS AN ELECTRIC NOSEHAIR TRIMMER THAT SELLS FOR 1995 THE PAST CAN PUMP LIFE INTO THE PRESENT THE NATIONAL TRUST FOR HISTORIC PRESERVATION INAUGURATED A PERMANENT PROGRAM THIS YEAR TO HELP TOWNS REFURBISH HISTORIC AREAS IN ORDER TO FOSTER TOURISM A 1993 STUDY BY THE TRAVEL INDUSTRY ASSOCIATION OF AMERICA SHOWS THAT 35 OF 1500 RESPONDENTS INTENDED TO VISIT A HISTORIC SITE WHILE ON VACATION A SEPARATE STUDY NOTES THAT VISITORS STAY A HALFDAY LONGER AND SPEND 62 MORE AT HISTORIC SITES THAN AT OTHER LOCATIONS THE NONPROFIT NATIONAL TRUST BEGAN HERITAGE TOURISM IN 1989 AS A PILOT PROGRAM IN FOUR STATES AIMED AT PRESERVING ARCHITECTURE NATURAL RESOURCES AND LOCAL CULTURES THE TENNESSEE OVERHILL GROUP FOR INSTANCE WANTED TO CREATE AN EXHIBIT WITHOUT WALLS OF SOUTHERN APPALACHIA INCLUDING MUSEUMS AND A TRAIN TOUR HERITAGE TOURISM HELPED IN DETERMINING RESIDENTS' OPINIONS OF TOURISM AND NEEDS OF VISITORS AND IN LOCATING FUNDING SOURCES WITH HERITAGE TOURISM'S AID EL PASO TEXAS DEVELOPED A TROLLEY TOUR OF ITS OLD SPANISH MISSIONS OVER SIX MONTHS THE INFLUX OF TOURISTS ON THE MISSION TRAIL PRODUCED 40000 IN AREA RETAIL SALES AND CHURCH CONTRIBUTIONS HERITAGE TOURISM PUBLISHES A FREE PRIMER ON TOURISM AND HISTORIC PRESERVATION MORE THAN 6000 OF WHICH HAVE BEEN MAILED AND FOR A FEE IT PROVIDES CONSULTING SERVICES IT NOW WORKS WITH CENTERVILLE IND TO SET UP LOANS FOR HOMEOWNERS AND SHOPKEEPERS TO RESTORE OLD ROW HOUSES THE CHALLENGE FOR MUNICIPALITIES SAYS HERITAGE TOURISM'S DIRECTOR CHERYL HARGROVE IS TO PROVIDE AMENITIES TO DRAW TOURISTS WITHOUT RUINING AN AREA'S UNIQUENESS CERTAIN NATIVE AMERICAN DANCES AND PLACES FOR EXAMPLE ARE SACRED SHE SAYS THE QUESTION IS HOW DO YOU PRESERVE AUTHENTICITY AND STILL SHARE IT WITH VISITORS TRAVEL BOOKSTORES ARE HOLDING THEIR OWN AGAINST BOOK SUPERSTORES MANY BOOKSTORES THAT SELL ONLY TRAVEL BOOKS FIND BUSINESS IS UP DESPITE OR PERHAPS BECAUSE OF THE ARRIVAL OF RETAIL GARGANTUAS IN THEIR NEIGHBORHOODS WITH INVENTORIES OF 9000 TO 20000 BOOKS AND MAPS TRAVEL BOOKSTORES ABOUT 75 NATIONWIDE CARRY LOTS OF ITEMS THAT SUCH BOOK SUPERSTORES AS BARNES & NOBLE DON'T HAVE WE HAVE A SUPERSTORE IN OUR BACK YARD AND WE DON'T FEEL IT'S A THREAT SAYS HARRIET BAY OF TRAVELER'S BOOKCASE IN LOS ANGELES SOME OF THEIR STAFF ACTUALLY REFER PEOPLE TO OUR PLACE WHEN THEY CAN'T FIND A TITLE THERE A PROLIFERATION OF GUIDEBOOKS IN THE LATE 1980S ALSO FATTENED SALES AT TRAVEL BOOKSTORES THE AMERICAN BOOKPUBLISHERS RECORD ESTIMATES THAT MORE THAN 900 NEW TRAVEL TITLES HIT THE MARKET IN 1989 AND NOW NEW ISSUES HOVER AROUND 500 A YEAR WHILE GENERAL BOOKSTORES CARRY THE BETTERKNOWN GUIDEBOOK LINES THE SPECIALTY STORES STOCK MANY NARROWLY FOCUSED BOOKS SUCH AS GUIDES TO VIETNAM OR MILAN WHICH UNTIL RECENTLY WERE VERY SCARCE EACH BOOK HAS A NICHE SOME OF WHICH ARE VERY NARROW BUT NOW WE CAN MORE EASILY TARGET OUR CUSTOMERS' INTERESTS SAYS SANDYE WEXLER OF SAVVY TRAVELLER IN CHICAGO TRAVEL BOOKSTORES SAY THEY CAN HELP CUSTOMERS WADE THROUGH THE BURGEONING CHOICE OF GUIDEBOOKS A SERVICE EMPLOYEES AT BIGGER STORES MIGHT BE TOO BUSY TO PROVIDE SPECIALTYSTORE STAFFERS ARE OFTEN SEASONED TRAVELERS THEMSELVES AND CUSTOMERS AT TRAVELER'S BOOKCASE FOR EXAMPLE EVEN SET UP INFORMAL NETWORKS TO ADVISE ONE ANOTHER ON TRIPS WE CAN HELP CUSTOMERS PLAN TRIPS RATHER THAN JUST HAND THEM A BOOK SAYS DIANA WELLS OF TRAVELLER'S BOOKSTORE IN NEW YORK WE TELL THEM THE BEST ROUTES EVEN WHERE THEY CAN GET INOCULATIONS HITTING THE ROAD MAY GET MORE INTERESTING THANKS TO RIDE WITH ME'S AUDIOTAPES AIMED AT TRAVELERS ON INTERSTATE HIGHWAYS THE BETHESDA MD COMPANY'S 24 PROGRAMS COVERING 17 STATES ACQUAINT DRIVERS WITH A PARTICULAR AREA'S HISTORY AND ODDITIES SUCH AS THE BUTTERFLY ZOO ON I75 IN GEORGIA BY LOCATING THE NEW YORK BOROUGH'S BEST CARROT CAKE AND LISTING CLASSES IN PAPERMAKING THE MANHATTAN USER'S GUIDE HOPES TO MAKE THE TEEMING ISLAND MORE LIKE A FRIENDLY HAMLET CHARLES SUISMAN BEGAN PUBLISHING THE NEWSLETTER IN MAY 1992 AFTER PRODUCING A SPECTACULARLY UNSUCCESSFUL BROADWAY MUSICAL 9311300133 931130 SMALL STOCK FOCUS SMALLCOMPANY STOCKS END NEARLY FLAT SMALL ENERGYRELATED ISSUES DECLINE BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS FINISHED NEARLY FLAT AFTER SPENDING MOST OF THE DAY MODERATELY HIGHER TRADING REMAINED DIRECTIONLESS FOLLOWING THE THANKSGIVING HOLIDAY THE ABSENCE OF ANY MAJOR MARKETMOVING NEWS PROVIDED LITTLE INSPIRATION FOR INVESTORS OBSERVERS SAID KEEPING VOLUME LIGHT THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES SLIPPED JUST 001 POINT TO 25014 IN FRIDAY'S SHORTENED SESSION THE BAROMETER EDGED UP 033 POINT ON NASDAQ THE COMPOSITE INDEX SLIPPED 333 POINTS OR 044 TO 75154 AFTER CLIMBING 169 POINTS ON FRIDAY THE INDEX SWUNG IN A NARROW RANGE BETWEEN POSITIVE AND NEGATIVE TERRITORY THROUGHOUT YESTERDAY'S SESSION DECLINING NASDAQ ISSUES OUTRAN ADVANCERS 1607 TO 1380 ON TOTAL NASDAQ NATIONAL MARKET VOLUME OF 204680900 SHARES UP FROM FRIDAY'S MEAGER 58123200 TOTAL VOLUME INCREASED TO 243134000 SHARES FROM ONLY 80286900 SHARES ON FRIDAY AMONG INDIVIDUAL MOVERS YESTERDAY ONE OF NASDAQ'S BIGGEST DECLINERS WAS KENDALL SQUARE RESEARCH WALTHAM MASS WHICH TUMBLED 3 3/4 OR 333 TO 7 1/2 THE COMPUTER SYSTEMS MAKER SAID IT EXPECTS TO MAKE SUBSTANTIAL ADJUSTMENTS IN ITS FINANCIAL STATEMENTS FOR FISCAL 1992 AND THE FIRST SIX MONTHS OF THIS YEAR AND ESTIMATES OF THESE DOWNWARD ADJUSTMENTS WILL BE RELEASED IN THE NEXT FEW DAYS EQUITY PRICES TRACKED THE GOVERNMENT'S LONG BOND WHICH WAS UP ABOUT 3/4 POINT EARLY ON BUT FELL BACK TO A LESS THAN 1/4POINT ADVANCE BY THE CLOSE ITS YIELD ENDED AT 623 THE EARLY SURGE WAS INSPIRED BY A PLUNGE IN THE PRICE OF CRUDE OIL AND NEWS THAT IRAQ MIGHT SOON EXPORT OIL AGAIN LAST WEEK OIL PRICES PLUMMETED WHEN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FAILED TO REACH AN AGREEMENT TO CUT PETROLEUM PRODUCTION LEVELS AMONG DECLINING SMALLER ENERGYRELATED STOCKS POOL ENERGY SERVICES HOUSTON FELL 1 TO 8 7/8 OKLAHOMA CITYBASED ALEXANDER ENERGY 9/16 TO 5 1/4 NOBLE DRILLING HOUSTON 1 1/8 TO 8 AND COHO ENERGY 1/2 TO 4 3/4 ON THE AMERICAN STOCK EXCHANGE NABORS INDUSTRIES A HOUSTON PROVIDER OF CONTRACT DRILLING SANK 1/2 TO 6 7/8 AND CANADA'S INTERNATIONAL COLIN ENERGY 3/4 TO 12 3/4 JIM MELCHER THE PRESIDENT OF BALESTRA CAPITAL MANAGEMENT SAID HE EXPECTS THAT MONEY WILL START TO FLOW BACK INTO THE LESS EXCITING AND LESS HYPED SOLID SMALL PERFORMERS MR MELCHER A GLOBAL MONEY MANAGER WHO FREQUENTLY INVESTS IN SMALL STOCKS SAID INVESTORS HAVE FLOCKED TO MANY OF THE MORE GLAMOUROUS ISSUES MANY OF THEM INITIAL PUBLIC OFFERINGS SUCH AS PETSMART AND SNAPPLE BEVERAGE BUT HE SAYS SOME REAL VALUES ARE TO BE FOUND IF YOU HAVE THE ABILITY TO FERRET NUGGETS OF GOLD FOUND AMONG THE REAL MEAT AND POTATOES STOCKS MR MELCHER MENTIONS JEAN PHILIPPE FRAGRANCES BENSON EYECARE AMEX AND LIBERTY TECHNOLOGIES AS A FEW OF THE DOZENS AND DOZENS OF ISSUES THAT HAVE LANGUISHED RECENTLY BUT OFFER GOOD EARNINGS GROWTH SUNRISE TECHNOLOGIES ADDED 5/8 TO FINISH AT 6 FOLLOWING NEWS THAT IT HAS STARTED OVERSEAS SALES OF THE SUNRISE CORNEAL SHAPING SYSTEM TO TREAT HYPEROPIA AND ASTIGMATISM ALSO KNOWN AS FARSIGHTEDNESS AND NEARSIGHTEDNESS CELTRIX PHARMACEUTICALS ROSE 3/4 TO 10 1/4 THE SANTA CLARA CALIF THERAPEUTIC PRODUCTS DEVELOPER SAID IT BEGAN A PHASE III CLINICAL STUDY USING RECOMBINANT BETAKINE TO TREAT MACULAR HOLES A POTENTIALLY BLINDING OPHTHALMIC DISORDER AN UPGRADE TO TRADING BUY FROM MODERATE OUTPERFORMER BY GOLDMAN SACHS & CO DROVE GOOD GUYS 1 1/8 HIGHER TO 15 THE BRISBANE CALIF COMPANY OWNS A CHAIN OF RETAIL CONSUMER ELECTRONIC PRODUCTS STORES THOR INDUSTRIES NYSE JACKSON CENTER OHIO GAINED 1 1/4 TO 23 1/4 THE PRODUCER OF RECREATIONAL VEHICLES REPORTED FISCAL FIRSTQUARTER EARNINGS OF 60 CENTS A SHARE COMPARED WITH OPERATING PROFIT OF 43 CENTS A YEAR EARLIER JENNY CRAIG NYSE A WEIGHT LOSS PROGRAM PROVIDER FELL 1 1/4 TO 11 3/4 AFTER IT SAID IT EXPECTS ITS RESULTS FOR THE FISCAL SECOND QUARTER ENDING DEC 31 TO BE SUBSTANTIALLY BELOW THE YEARAGO PERIOD BECAUSE OF LOWER NEW CLIENT ENROLLMENTS FOR THE 1992 FISCAL SECOND QUARTER THE DEL MAR CALIF CONCERN EARNED 68 MILLION OR 25 CENTS A SHARE NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 52 WHILE 39 ISSUES HIT NEW LOWS 9311300132 931130 ECONOMY SURVEYS FIND SMALL FIRMS PLANNING MORE SPENDING SEEKING ADDED CREDIT BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL MANY SMALL COMPANIES PLAN TO INCREASE SPENDING OVER THE NEXT THREE MONTHS AND ARE IN STRONGER FINANCIAL SHAPE TO TAKE ON NEW BANK LOANS TWO NEW STUDIES SHOW THE PLANS OF 400 SMALL AND MEDIUMSIZE COMPANIES CALL FOR SPENDING ON MARKETING PRODUCTION AND NEW EQUIPMENT TO PICK UP TO THE HIGHEST LEVELS SINCE EARLY THIS YEAR ACCORDING TO THE MONTHLY CAHNERS BUSINESS CONFIDENCE SURVEY IT'S THE FIRST TIME IN SIX MONTHS OUR SURVEY POINTS TO SPENDING INCREASES ACROSS THE BOARD IN ALL THE MAJOR CATEGORIES SAID DARYL DELANO ECONOMIST FOR CAHNERS PUBLISHING CO WHICH CONDUCTS THE MONTHLY SURVEY ABOUT 60 OF THE COMPANIES POLLED HAVE FEWER THAN 100 EMPLOYEES WITH THE BULK OF THE REST HAVING FEWER THAN 1000 SUCH COMPANIES ALSO HAVE REDUCED DEBT TO COMFORTABLE LEVELS IN CONTRAST TO LARGER COMPANIES WHOSE DEBT LEVELS REMAIN HIGH AND WHICH PLAN TO REDUCE BANK BORROWING ACCORDING TO GOLDMAN SACHS & CO IN ANOTHER RECENT STUDY THE CONFIDENCE LEVELS OF MOST MANUFACTURING COMPANIES LARGE AND SMALL REMAIN GUARDED BECAUSE OF UNCERTAINTIES OVER THE IMPACT OF HIGHER TAXES AND THE CLINTON HEALTH PLAN EVEN SO AN AWFUL LOT OF MIDMARKET COMPANIES ARE LOOKING TO ENLARGE THEIR SENIOR BANK CREDIT LINES SAYS ROGER WINSTON MANAGING DIRECTOR OF HILL THOMPSON CAPITAL MARKETS INC ONE SUCH COMPANY FINDING BANKS MORE ACCOMMODATING AS IT SEEKS TO INCREASE ITS BORROWING IS BISCAYNE HOLDINGS INC DESPITE IMPROVING PROFIT THE CLIFTON NJ APPAREL MAKER WHICH HAS 60 MILLION IN ANNUAL SALES WASN'T ABLE TO EXPAND ITS 23 MILLION CREDIT LINE IN THE TOUGHER BANKING ENVIRONMENT OF THE PAST TWO YEARS BUT RECENTLY THE RESPONSE WAS VERY ENTHUSIASTIC AMONG BANKS ASKED TO PARTICIPATE IN A 26 MILLION CREDIT LINE SAID PETER VANDENBERG CHIEF FINANCIAL OFFICER THERE'S LITTLE QUESTION THAT BANKS ARE MORE OPEN TO LENDING TO SMALL BUSINESS ON AVERAGE SAID JOHN LONSKI CHIEF ECONOMIST OF MOODY'S INVESTORS SERVICE INC HE EXPECTS THAT A COMBINATION OF STRONGER DEMAND PERHAPS SPURRED BY INCREASED HIRING AFTER A STRONG CHRISTMAS SALES SEASON AND INCREASED SUPPLY OF LOANS COULD WELL SURFACE IN 1994 A RISE IN BANK BORROWING TO PAY FOR THE INCREASED SPENDING COULD BE HANDLED COMFORTABLY BY MOST SMALL COMPANIES ACCORDING TO DATA FROM THE NEW STUDY BY GOLDMAN SACHS CITING COMMERCE DEPARTMENT DATA THE STUDY SAID MANUFACTURING COMPANIES WITH LESS THAN 25 MILLION IN ASSETS HAD SHARPLY REDUCED DEBTTOOPERATINGPROFIT RATIOS AND BANK LIABILITIES IN RECENT YEARS TO MID1980S LEVELS LARGE COMPANIES DESPITE ALSO HAVING PAID DOWN DEBT STILL HAVE BANK LOANS AND DEBTTOPROFIT LEVELS TWICE AS HIGH AS THEY DID FIVE TO EIGHT YEARS AGO GOLDMAN'S SURVEY OF CHIEF FINANCIAL OFFICERS AT THE 1000 LARGEST INDUSTRIAL COMPANIES FOUND THAT THEY PLANNED TO REDUCE BANK LOANS OUTSTANDING BY 10 OVER THE NEXT SIX MONTHS AS THE LARGEST INDUSTRIALS ADDED THE GREATEST AMOUNT OF DEBT DURING THE HLT HIGHLY LEVERAGED TRANSACTION BOOM THEY ARE THE ONES WITH THE MOST TO PAY DOWN AND WILL REMAIN IN AN EXTENDED DELEVERAGING CYCLE SAID ROBERT ALBERTSON GOLDMAN SACHS'S CHIEF BANK ANALYST AND AUTHOR OF THE REPORT MR LONSKI THINKS THE PROJECTION OF A 10 DECLINE IN LARGE CORPORATE BORROWING IS EXTREME BANK FINANCING FOR THE INCREASING PACE OF MERGERS PLUS STOCK BUYBACKS TO FEND OFF HOSTILE TAKEOVER OFFERS AND INVENTORY BUILDUP COULD WELL PICK UP IN 1994 HE SAID BANKS ALSO WILL SEE LITTLE IF ANY LOAN DEMAND FROM BIG COMPANIES BECAUSE THEY ARE FINANCING GROWTH PLANS OUT OF STRONG PROFITS AND AS A RECENT FEDERAL RESERVE STUDY SAID ARE GETTING MONEY ELSEWHERE FROM THE RECENT HEAVY PACE OF BOND AND EQUITY ISSUANCE MR ALBERTSON ESTIMATES THAT THE 500 LARGEST INDUSTRIAL COMPANIES HAVE 100 BILLION IN BANK LOANS OUTSTANDING AND THE 500 LARGEST SERVICE COMPANIES ACCOUNT FOR ABOUT 120 BILLION OF THE TOTAL 583 BILLION COMMERCIAL AND INDUSTRIAL LOANS ON THE BOOKS OF THE NATION'S BANKS THE TOTAL COMMERCIAL AND INDUSTRIAL LOAN FIGURE HAS DECLINED STEADILY FROM 653 BILLION IN JUNE 1990 BECAUSE BIG COMPANIES ARE INCREASINGLY TURNING TO THE SHORTTERM COMMERCIALPAPER MARKET AND ARE CONSOLIDATING THEIR BANK LENDING AMONG FEWER BANKS IT WILL CONTINUE TO BE A CHALLENGE TO GROW LOANS SAID MICKEY DRY CHIEF CREDIT OFFICER FOR WACHOVIA CORP THE LARGE NORTH CAROLINA BANKING COMPANY HOWEVER IS SEEING GOOD GROWTH IN LOANS TO SMALL BUSINESSES AND SOME LARGE COMPANIES ARE LENGTHENING LOAN COMMITMENTS TO LOCK IN THE EXISTING INTEREST RATE SPREAD OVER A BENCHMARK SHORTTERM RATE HE SAID THAT WAY IF LOAN DEMAND DOES PICK UP AND BANKS CHARGE MORE THE COMPANIES WILL HAVE THE NEXT TWO OR THREE YEARS INSTEAD OF 12 MONTHS TO LINE UP A LOAN AT TODAY'S RATES ONE LARGE COMPANY THAT EXPECTS AT LEAST A TEMPORARY PICKUP IN BANK BORROWING IS RJR NABISCO HOLDINGS CORP IT PLANS TO BORROW FROM BANKS AND THE COMMERCIAL PAPER MARKET NEXT SPRING FOR FUNDS TO CALL IN ABOUT 27 BILLION OF HIGHCOUPON BONDS WHEN THE TIME IS RIGHT IT WILL REFINANCE THAT DEBT OVER A LONGER TERM IN THE BOND MARKET SAID JOHN DELUCCA TREASURER AMONG LARGE COMPANIES RJR NABISCO HAS PROBABLY REDUCED ITS DEBT THE MOST FROM ABOUT 29 BILLION OR 75 OF TOTAL CAPITALIZATION AT THE TIME OF ITS LEVERAGED BUYOUT IN EARLY 1989 TO ROUGHLY 127 BILLION OR 45 OF CAPITALIZATION WHICH IS CLOSE TO ITS GOAL 9311300131 931130 INTERNATIONAL UK BROADCASTER CARLTON MAKES BID FOR REST OF CENTRAL BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CARLTON COMMUNICATIONS PLC BID FOR THE PORTION OF CENTRAL INDEPENDENT TELEVISION IT DOESN'T ALREADY OWN THE FIRST MOVE IN AN EXPECTED CONSOLIDATION OF BRITAIN'S INDEPENDENT TELEVISION BROADCASTERS THE 624 MILLION 9235 MILLION BID FOLLOWS THE GOVERNMENT'S ANNOUNCEMENT LAST WEEK THAT IT WILL PROPOSE ALLOWING INDEPENDENT TV COMPANIES TO OWN TWO FRANCHISES AND 20 OF A THIRD CARLTON AND CENTRAL ARE THE TWO BIGGEST INDEPENDENT COMPANIES CARLTON ALREADY OWNS 191 OF CENTRAL WHICH IN TURN OWNS 20 OF MERIDIAN ANOTHER INDEPENDENT COMPANY IF THE DEAL IS CONSUMMATED CARLTON AND CENTRAL WON'T BE ABLE TO OWN MORE FRANCHISES UNDER THE PROPOSED RULES CENTRAL HAS AGREED TO THE CARLTON BID TOGETHER CARLTON AND CENTRAL WILL ACCOUNT FOR 22 OF THE UK'S TELEVISION AD REVENUE AND COVER 20 MILLION PEOPLE OR 36 OF THE UK POPULATION FIFTEEN INDEPENDENT COMPANIES CURRENTLY BROADCAST ON CHANNEL 3 WITH EACH HAVING RIGHTS TO BROADCAST IN CERTAIN GEOGRAPHIC REGIONS CARLTON AND CENTRAL TOGETHER ACCOUNT FOR 30 OF THE 16 BILLION SPENT BY ADVERTISERS YEARLY ON CHANNEL 3 SAID DAVID MURRELL OF KPMG PEAT MARWICK CARLTON OPERATES WITHOUT ITS OWN STUDIO FACILITIES WHILE CENTRAL HAS MODERN FACILITIES IN NOTTINGHAM CARLTON SAID THE COMPANIES SAID THE MERGER WILL ENABLE THEM TO CUT COSTS IMPROVE PROFITS AND EXPAND THE GOVERNMENT OWNS THE TWO BRITISH BROADCASTING CORP TV CHANNELS BBC 1 AND BBC 2 CHANNEL 4 IS ALSO A GOVERNMENTOWNED STATION BUT IS FUNDED BY AD REVENUE INSTEAD OF TELEVISION LICENSES THAT VIEWERS ARE REQUIRED TO PURCHASE THE CARLTON OFFER VALUES CENTRAL AT 758 MILLION OR 26 A SHARE IN LONDON TRADING YESTERDAY CENTRAL SHARES SHOT UP 405 PENCE TO 2573 AND CARLTON LEAPT 30 PENCE TO 797 CARLTON SAID IT WILL PAY 204 MILLION CASH WITH THE REMAINDER IN SHARES AND CONVERTIBLE PREFERENCE SHARES FOR EVERY 100 CENTRAL SHARES CARLTON SAID IT WILL PAY 85062 CASH 114 NEW CARLTON ORDINARY SHARES AND 875 NEW CARLTON PREFERENCE SHARES CARLTON WILL ALSO BUY ALL OF CENTRAL'S 65 CONVERTIBLE SUBORDINATED BONDS DUE IN 2008 CARLTON SAID ITS BID IS 24 ABOVE THE MIDDLE MARKET CENTRAL SHARE PRICE ON NOV 23 THE DAY BEFORE THE PROPOSED CHANGE IN GOVERNMENT RULES ON INDEPENDENT TELEVISION THE BID IS 20 ABOVE THE MIDDLE MARKET CENTRAL SHARE PRICE ON NOV 25 SEPARATELY CARLTON REPORTED THAT ITS PRETAX PROFIT ROSE 26 TO 1261 MILLION FROM 1002 MILLION FOR THE YEAR ENDED SEPT 30 REVENUE ROSE 56 TO 1091 BILLION FROM 7016 MILLION 9311300130 931130 PARAMETRIC GETS 26 MILLION JOB WALTHAM MASS PARAMETRIC TECHNOLOGY CORP RECEIVED A 26 MILLION ORDER FOR SOFTWARE AND SERVICES FROM THE CIGARETTE PRODUCER AND PACKAGER G D SPA OF BOLOGNA ITALY THE ORDER INCLUDES 156 SETS OF PARAMETRIC'S PRO/ENGINEER MECHANICAL DESIGN AUTOMATION SOFTWARE WHICH WILL BE SHIPPED TO G D IN THE CURRENT QUARTER 9311300129 931130 ECONOMY HOME RESALES CLIMB TO HIGHEST LEVEL IN 14 YEARS LED BY LOW INTEREST RATES BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL EXISTINGHOME SALES ROSE A ROBUST 36 IN OCTOBER WITH CONTINUED LOW INTEREST RATES FUELING THE HIGHEST MONTHLY LEVEL OF ACTIVITY IN 14 YEARS SALES OF EXISTING SINGLEFAMILY HOMES GREW TO A SEASONALLY ADJUSTED ANNUALIZED RATE OF 4080000 FROM A REVISED PACE OF 3940000 IN SEPTEMBER ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS LED BY FIRSTTIME BUYERS RUSHING TO LOCK IN HISTORICALLY LOW INTEREST RATES HOME SALES JUMPED 10 FROM A YEAR EARLIER EVEN THOUGH THE SOUTH AND NORTHEAST WERE ESSENTIALLY FLAT FROM SEPTEMBER TO OCTOBER AND CALIFORNIA SLIPPED SIGHTLY THE OVERALL LEVEL OF ACTIVITY SHOWED A STRONG IMPROVEMENT LED BY THE BOOMING NORTHWEST AND SOUTHWEST HOUSING MARKETS IT SHOWS THE HOUSING MARKET IS HEATING UP IT'S RUNNING ON ALL CYLINDERS NOW SAID MARK ZANDI CHIEF ECONOMIST FOR REGIONAL FINANCIAL ASSOCIATES INC A WEST CHESTER PA CONSULTING FIRM ANALYSTS CAUTION HOWEVER THAT MONTHLY RESULTS TEND TO BE ERRATIC AND THAT OCTOBER'S HECTIC ACTIVITY MAY NOT BE SUSTAINABLE ESPECIALLY IN THE TRADITIONALLY SLUGGISH HOLIDAY SEASON INDEED THE MORTGAGE BANKERS ASSOCIATION OF AMERICA'S WEEKLY INDEX OF THE VOLUME OF MORTGAGE APPLICATIONS SHOWS A SLIGHT SLIPPAGE BUT ACTIVITY IS STILL RUNNING ALMOST 75 ABOVE NORMAL LEVELS AND NOT FAR OFF THE JULY PEAK THE INDEX REFLECTS NEWLY OPENED TRANSACTIONS THAT MAY TAKE AS LONG AS TWO MONTHS TO COMPLETE MANY EXPECT STRONG LEVELS OF HOME BUYING WELL INTO THE NEW YEAR UNLESS INTEREST RATES JUMP SHARPLY THE REALTORS ARE PROJECTING THAT SALES WILL TOTAL 37 MILLION HOMES THIS YEAR UP 5 FROM THE PREVIOUS YEAR AND RISE 32 IN 1994 TO 38 MILLION UNITS HISTORICALLY WE'VE NOT STAYED ABOVE FOUR MILLION FOR LONG SAID LAWRENCE J HORAN AN ANALYST FOR PRUDENTIAL SECURITIES INC WHO NONETHELESS EXPECTS THE ANNUAL SALES RATE TO EXCEED 37 MILLION FOR SOME MONTHS WE'LL BE IN THAT RANGE THROUGH SPRING WE'RE GOING TO SEE EXCEPTIONAL ACTIVITY THE BIGGEST INCREASE IN HOME SALES WAS IN THE WEST WHICH SAW A 96 INCREASE IN OCTOBER FROM SEPTEMBER LED BY THE BOOMING MARKETS OF THE ROCKIES AND SOUTHWEST ALTHOUGH CALIFORNIA SALES SLIPPED 2 THE CALIFORNIA ASSOCIATION OF REALTORS SAID THE PACE WAS STILL UP 66 FROM A YEAR EARLIER INDICATING THAT THE MARKET IS SLOWLY RECOVERING UNTIL RECENTLY CALIFORNIA HOUSING RESALES HAD BEEN SO WEAK THAT THE STATE DRAGGED DOWN THE WEST REGION'S OVERALL NUMBERS THERE'S SOME LIFE IN CALIFORNIA FOR THE FIRST TIME IN MANY YEARS MR ZANDI SAID THE WORST IS OVER FOR THE CALIFORNIA MARKET CALIFORNIA REALTORS PRESIDENT PAT NEAL SAID LOW INTEREST RATES HAVE FINALLY KICKED IN PUSHING YEARTODATE HOME SALES ABOVE LAST YEAR'S LEVEL FOR THE FIRST TIME IN 1993 WE'RE NOT SEEING MUCH MORE SOFTENING IN THE PRICES SHE SAID IT'S LOOKS LIKE WE PROBABLY PLATEAUED AND ARE ON THE UPSWING BUT INGO WINZER EDITOR OF THE LOCAL MARKET MONITOR IN WELLESLEY MASS SAID CALIFORNIA WAS ONE OF THE FEW STATES TO REPORT A DROP IN NEW HOUSING PERMITS IN OCTOBER FROM A YEAR EARLIER WITH AN OVERALL DECLINE OF 17 AND A 31 PLUNGE IN SOUTHERN CALIFORNIA BUILDING IN THE REST OF THE COUNTRY HAS GENERALLY KEPT PACE WITH THE BOOM IN RESALES EVEN IF CALIFORNIA IS OFF THE BOTTOM MR WINZER SAID THE RECOVERY IS QUITE FAR AWAY OTHER PARTS OF THE COUNTRY COOLED OFF SOME FROM RECENT SHARP RESALE GAINS THE MIDWEST INCREASED ONLY 38 FROM SEPTEMBER WHILE BOTH THE SOUTH AND NORTHEAST EXPERIENCED LITTLE GROWTH SALES IN THE SOUTH GREW 114 FROM A YEAR EARLIER AND 89 IN THE NORTHEAST BOTH THOSE AREAS ARE SIGNIFICANTLY BETTER THAN A YEAR AGO SAID JOHN A TUCCILLO CHIEF ECONOMIST AT THE NATIONAL ASSOCIATION OF REALTORS 9311300128 931130 SALE TO LAS VEGAS ENTERTAINMENT LAS VEGAS LAS VEGAS ENTERTAINMENT NETWORK INC SAID IT COMPLETED THE PURCHASE OF THE EL RANCHO HOTEL AND CASINO STRIP FOR 33 MILLION THE PROGRAMMING MARKETER AND PRODUCER SAID THE PROPERTY WILL REOPEN IN 1994 AS EL RANCHO'S COUNTRYLAND USA IT INITIALLY PLANS TO BUILD TWO 20STORY TOWERS RESEMBLING A GIGANTIC PAIR OF DRESSEDUP WESTERNSTYLE BOOTS NEARLY DOUBLING THE NUMBER OF ROOMS TO 2001 AND A RODEOPRODUCTION FACILITY ON THE 22ACRE SITE 9311300127 931130 INTERNATIONAL FERRUZZI GROUP'S DEBT RESTRUCTURING CLEARED BY BANKS BY MAUREEN KLINE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN A GROUP OF FOREIGN CREDITOR BANKS JOINED ITALIAN BANKS IN APPROVING A RESTRUCTURING PLAN FOR ITALY'S DEBTRIDDEN FERRUZZI GROUP GIVING THE CONGLOMERATE'S MANAGEMENT A GREEN LIGHT TO PROCEED THE BOARDS OF FERRUZZI FINANZIARIA SPA AND ITS KEY INDUSTRIAL UNIT MONTEDISON SPA RECEIVED APPROVAL OF ITALIAN AND FOREIGN CREDITOR BANKS REPRESENTING MORE THAN 85 OF THE 162 TRILLION LIRE 954 BILLION OF DEBT TO BE RESCHEDULED ACCORDING TO A REVISED VERSION OF THE PLAN APPROVAL OF CREDITORS REPRESENTING AT LEAST 85 OF THE DEBT SLATED TO BE RESCHEDULED WAS NEEDED TO SAVE FERRUZZI ITALY'S SECONDLARGEST PUBLICLY TRADED COMPANY FROM LIQUIDATION ITALIAN BANKS REPRESENTING ABOUT 80 OF THE DEBT HAD ALREADY APPROVED THE PLAN THEY WERE JOINED YESTERDAY BY DEUTSCHE BANK SOCIETE GENERALE AND OTHERS BRINGING APPROVAL ABOVE THE 85 LIMIT IT HAD BEEN RUMORED THAT GERMAN AND FRENCH BANKS WOULD BACK THE PLAN WHILE US UK AND SWISS BANKS WERE MORE RELUCTANT A KEY FOREIGN CREDITOR COMMITTEE MADE UP OF CITICORP'S CITIBANK UNION BANK OF SWITZERLAND CREDIT SUISSE AND BARCLAYS BANK PLC SAID THAT ALTHOUGH IT CONSIDERED THE REVISED VERSION OF THE PLAN AN IMPROVEMENT IT NEEDED MORE TIME AND STUDY BEFORE MAKING A FINAL DECISION DEUTSCHE BANK WITHDREW FROM THE COMMITTEE WHEN IT DECIDED TO SUPPORT THE PLAN UNDER THE REVISED PLAN 23 TRILLION LIRE WILL BE SET ASIDE TO HELP REIMBURSE 85 OF THE CAPITAL OWED TO FOREIGN BANKS STARTING AT THE END OF THIS YEAR THE AMOUNT OF TOTAL DEBT TO BE RESCHEDULED WAS REDUCED TO 162 TRILLION FROM 182 TRILLION IN THE ORIGINAL PLAN AND THAT OF FOREIGN BANKS WAS SLASHED 23 FOREIGN BANKS HAD REJECTED THE PREVIOUS PLAN TOTAL GROUP DEBT IS NOW RUNNING AT APPROXIMATELY 297 TRILLION LIRE OF WHICH 251 TRILLION IS BANK LOANS OUTSTANDING SOME 162 TRILLION LIRE OF THE BANK DEBT HAS BEEN TARGETED FOR RESCHEDULING 32 TRILLION OF WHICH PERTAINS TO FOREIGN BANKS 9311300126 931130 SCIENTIFICATLANTA GETS PROJECT ATLANTA SCIENTIFICATLANTA INC SAID IT WILL PROVIDE VOLKSWAGEN AG WITH A PRIVATE SATELLITE NETWORK TO LINK THE GERMAN AUTO MAKER'S HEADQUARTERS WITH ITS OTHER EUROPEAN OFFICES SCIENTIFICATLANTA A MAKER OF ELECTRONIC INSTRUMENTS AND COMMUNICATION EQUIPMENT SAID THE FIRST PHASE OF THE PROJECT IS VALUED AT 22 MILLION WITH INSTALLATION ESTIMATED AT ANOTHER 22 MILLION THE INITIAL PHASE INVOLVES LINKING AS MANY AS 300 DEALERS THROUGH THE NETWORK WITHIN THE NEXT YEAR 9311300125 931130 CORRECTIONS & AMPLIFICATIONS MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI SAID THAT THE GOVERNMENT WILL ALLOW INDEPENDENT GROUPS TO AUDIT THE LIST OF ELIGIBLE VOTERS IN AN ATTEMPT TO ASSURE VOTERS THAT FRAUD HASN'T INFLUENCED THE ELECTORAL ROLLS IN A NOV 22 ARTICLE IT WAS INCORRECTLY STATED THAT THE RULING PARTY WAS THE ORGANIZATION AUTHORIZING THE AUDIT HALLMARK CARDS INC'S RECORDABLE GREETING CARDS ARE PRICED AT 795 EACH AMERICAN GREETINGS CORP'S RECORDABLE CARDS ARE PRICED AT 995 EACH AN ARTICLE YESTERDAY MISSTATED THE PRICES 9311300124 931130 WHO'S NEWS STERIS CORP STERIS CORP MENTOR OHIO THREE EXECUTIVES WERE NAMED TO HEAD THE THREE NEWLY CREATED OPERATING DIVISIONS OF THIS MAKER OF PRODUCTS FOR THE HEALTHCARE INDUSTRY J LLOYD BREEDLOVE 46 YEARS OLD WAS NAMED PRESIDENT OF THE NORTH AMERICAN DIVISION AND CONTINUES AS A CORPORATE EXECUTIVE VICE PRESIDENT CRAIG E HERROD 36 WAS NAMED PRESIDENT OF THE INTERNATIONAL DIVISION AND CONTINUES AS A CORPORATE VICE PRESIDENT AND UPON COMPLETION OF THE ACQUISITION OF ENGINEERING AND MANUFACTURING CONCERN MICRODIMENSIONS INC BRUCE R KNOX 37 MAJORITY OWNER AND PRESIDENT OF MICRODIMENSIONS WILL BECOME PRESIDENT OF STERIS'S ENGINEERING AND MANUFACTURING DIVISION 9311300123 931130 FIRST FIDELITY BANCORP PURCHASE LAWRENCEVILLE NJ FIRST FIDELITY BANCORP SAID THE COMPTROLLER OF THE CURRENCY APPROVED ITS PROPOSED ACQUISITION OF PEOPLES WESTCHESTER SAVINGS BANK THE ACQUISITION IS EXPECTED TO CLOSE DEC 30 WITH PEOPLES WESTCHESTER SHAREHOLDERS TO RECEIVE CASH OR FIRST FIDELITY COMMON SHARES BASED ON THE AVERAGE CLOSING PRICE OF FIRST FIDELITY SHARES FOR A 10DAY PERIOD PRIOR TO THE EFFECTIVE DATE PEOPLES WESTCHESTER HAWTHORNE NY HAS 17 BILLION IN ASSETS 9311300122 931130 CLINTON'S BULL MARKET BY JAMES TOBIN THE STUBBORNLY SLOW PACE OF US ECONOMIC RECOVERY CONTINUES TO DISAPPOINT THE CLINTON ADMINISTRATION AND MOST OF THE COUNTRY DESPITE FAVORABLE RECENT NEWS BUSINESSES AND CONSUMERS EXPRESS LITTLE CONFIDENCE IN THE NATION'S ECONOMIC FUTURE OR THEIR OWN YET STOCK MARKET PRICES ARE SETTING RECORD HIGHS THE DOW JONES INDUSTRIAL AVERAGE IS 35 ABOVE ITS BULL MARKET PEAK IN OCTOBER 1987 AND 110 ABOVE ITS VALUE AFTER THE CRASH THAT SAME MONTH THE MORE REPRESENTATIVE STANDARD & POOR'S 500 INDEX IS NEARLY 40 ABOVE ITS 1987 PEAK AND MORE THAN TWICE THE VALUE IT CRASHED TO IN AN ERA OF INFLATION RECORD VALUES OF ANYTHING IN DOLLARS ARE COMMONPLACE AND MEANINGLESS MEASURED IN CONSUMER PURCHASING POWER THE DOW HAS RISEN ABOUT 10 FROM ITS 1987 PEAK AND 75 FROM ITS POSTCRASH VALUE CORRESPONDING FIGURES FOR THE S&P 500 ARE 3 AND 70 PREVIOUS HIGHS FOR INFLATIONADJUSTED STOCK VALUES OCCURRED IN 1968 RELATIVE TO AVERAGES FOR THAT YEAR A DOW INVESTOR WOULD HAVE LOST 2 IN CONSUMER BUYING POWER OVER 25 YEARS WHILE AN S&P 500 INVESTOR WAS GAINING 13 FROM THE POINT OF VIEW OF CORPORATE MANAGERS PURCHASING POWER OVER PLANT AND EQUIPMENT IS MORE RELEVANT THAN VALUE IN BUYING CONSUMER GOODS CAPITALGOODS INFLATION TRENDS HAVE BEEN SLOWER THAN CONSUMER PRICE INDEX INFLATION SINCE 1987 THE COSTS OF NEW PLANT AND EQUIPMENT HAVE ACTUALLY DECLINED WHEN STOCK MARKET PRICES RISE RELATIVE TO CAPITAL GOODS PRICES CORPORATE INVESTMENT IN NEW FACILITIES IS ENCOURAGED BECAUSE COMPANIES NEED TO SELL FEWER SHARES TO RAISE THE FUNDS THEY NEED FOR PROJECTS THIS INVESTMENT INCENTIVE IS LIKE THAT OF A REDUCTION IN INTEREST RATES ON CORPORATE BONDS A RELEVANT MEASURE COMBINING THESE TWO INCENTIVES IS THE RATIO OF MARKET VALUATION TO REPLACEMENT COST WIDELY KNOWN IN FINANCIAL AND ECONOMICS CIRCLES AS TOBIN'S Q MARKET VALUATION THE NUMERATOR OF Q IS THE FINANCIAL MARKET VALUE OF COMPANIES' STOCK AND BOND OBLIGATIONS THE DENOMINATOR REPLACEMENT COST IS THE COMMODITY MARKET COST TO COMPANIES OF REPLACING THEIR REPRODUCIBLE PHYSICAL ASSETS REPLACEMENT COST IS LIKE THE BOOK VALUES OF THOSE ASSETS BUT EXPRESSED IN CURRENT RATHER THAN ORIGINAL COST BONDS ARE INCLUDED ALONG WITH STOCKS IN MARKET VALUATION BECAUSE THEY ARE ALTERNATIVE WAYS OF FINANCING INVESTMENTS IN PLANT AND EQUIPMENT AND BECAUSE THE AMOUNT OF COMPANIES' BOND DEBT AFFECTS USUALLY NEGATIVELY THE VALUE OF THEIR OUTSTANDING EQUITY AN ADVANTAGE OF THE QRATIO OVER SIMPLE COMPARISONS OF STOCK PRICES AND COMMODITY PRICES IS THAT IT TAKES ACCOUNT OF INCREASES IN THE PLANT AND EQUIPMENT CONTENT OF A SHARE OF STOCK DUE TO REINVESTMENT OF EARNINGS STOCK MARKET VALUES SHOULD REFLECT THOSE REINVESTMENTS RESULTING INCREASES IN STOCK PRICES ARE NO MORE A REASON FOR CELEBRATION THAN INCREASES THAT KEEP UP WITH INFLATION ADJUSTMENTS ARE ALSO MADE FOR LIABILITIES OTHER THAN BONDS AND SHARES AND FOR ASSETS OTHER THAN REPRODUCIBLE PLANT AND EQUIPMENT IN PRINCIPLE THE PAR VALUE OF THE QRATIO IS 1 AT THAT VALUE FINANCIAL MARKETS WOULD SIMPLY BE REFLECTING THE CURRENT PRICES OF THE ASSETS TO WHICH STOCKS AND BONDS ARE TITLES VALUES ABOVE 1 WOULD ENCOURAGE AND VALUES BELOW 1 DISCOURAGE COMPANIES' ACQUISITIONS OF NEWLY PRODUCED PHYSICAL ASSETS ESPECIALLY ASSETS SIMILAR TO THE EXISTING ONES THE MARKETS ARE EVALUATING A PROBLEM IN INTERPRETING OBSERVABLE Q'S IS THAT WHILE LOW CORPORATE Q'S SIGNAL THE OBSOLESCENCE OF EXISTING INSTALLATIONS AND DETER FURTHER INVESTMENTS OF THE SAME TYPE THOSE OVERALL RATIOS DO NOT REGISTER THE POSSIBLE PROFITABILITY OF INVESTMENT IN NEW TECHNOLOGIES AND PRODUCTS THUS IN THE 1970S ENERGYUSING INDUSTRIES HAD LOW Q'S BUT WERE BUSY INVESTING IN ENERGYSAVING EQUIPMENT AND TECHNIQUES IN ANY CASE THE THEORETICAL NORM OF Q=1 CANNOT BE TAKEN LITERALLY IN PRACTICAL APPLICATIONS BECAUSE OF THE VAGARIES OF ACCOUNTING AND STATISTICS ONE REASON IS THAT CORPORATIONS POSSESSING MONOPOLY POWER OR OTHER SOURCES OF INTANGIBLE GOOD WILL MAY ENJOY EXCEPTIONALLY HIGH VALUES OF Q FOR YEARS AND DECADES QRATIOS HAVE BEEN CALCULATED WORLDWIDE BOTH FOR INDIVIDUAL COMPANIES AND FOR WHOLE ECONOMIES THE CHART SHOWS YEAREND QRATIOS FOR THE US NONFINANCIAL CORPORATE SECTOR 194593 CALCULATED MAINLY FROM FEDERAL RESERVE FLOW OF FUNDS DATA THE 1993 ESTIMATE ASSUMES AMONG OTHER THINGS THAT CURRENT MARKET VALUES WILL PREVAIL ON DEC 31 IF SO 1993 WILL SET A MEANINGFUL NEW RECORD THE HIGHEST POSTWAR VALUE OF Q 70 ABOVE YEAREND 1987 AND 7 ABOVE 1968 THERE ARE SIGNS THAT THIS INCENTIVE IS WORKING TO LIFT BUSINESS FIXED INVESTMENT FROM THE DOLDRUMS IF THE TREND CONTINUES THE CLINTON ECONOMIC TEAM WILL HAVE SOMETHING TO CHEER ABOUT DESPITE THE IMPROVEMENT HOWEVER BUSINESS FIXED INVESTMENT REMAINS DISTRESSINGLY LOW RELATIVE TO GROSS DOMESTIC PRODUCT WILL PRESIDENT CLINTON'S BULL MARKET CONTINUE WE CAN'T RULE OUT A DECEMBER SURPRISE MOVEMENTS OF STOCK PRICES ARE ALWAYS SURPRISES BECAUSE IF INVESTORS HAD ANTICIPATED THEM THEY WOULD ALREADY HAVE OCCURRED THE BEST THAT EXPERTS CAN DO IS TO RATIONALIZE EVENTS AFTER THE FACT WHAT EXPLAINS THE CONTRAST BETWEEN THE PESSIMISM AMERICANS EXPRESS IN POLLS AND THE APPARENT OPTIMISM WITH WHICH THEY HAVE BEEN BIDDING UP STOCK PRICES STOCKS HAVE BECOME POPULAR WITH INDIVIDUAL INVESTORS DISAPPOINTED AT THE INTEREST THEY CAN EARN THESE DAYS ON BANK CERTIFICATES OF DEPOSIT MONEY MARKET FUNDS AND BONDS THEY HAVE BEEN FLOODING EQUITY MUTUAL FUNDS WITH PURCHASES IT'S NATURAL THAT AS BOND PRICES RISE AND BOND YIELDS FALL THE SAME THING HAPPENS TO STOCKS BUT ONLY WITHIN LIMITS THE BULLISHNESS OF BOND MARKETS APPEARS TO REFLECT THE SATISFACTION OF BONDHOLDING PENSION FUNDS AND INSURANCE COMPANIES WITH THE PROSPECTS OF SLOW WEAK INFLATIONSAFE HIGHUNEMPLOYMENT RECOVERY STAGNATION WOULD BE A MORE ACCURATE DESCRIPTION TO BONDHOLDERS THOSE PROSPECTS SIGNAL A TAME FUTURE IN WHICH THE FED WILL NEVER HAVE REASON TO RAISE INTEREST RATES A FUTURE WITH LITTLE THREAT OF CAPITAL LOSSES ON BONDS AND SOME CHANCES OF CAPITAL GAINS WHILE LOW INTEREST RATES PER SE ARE GOOD FOR STOCK PRICES THE ENVIRONMENT BONDHOLDERS COUNT ON TO KEEP INTEREST RATES LOW IS QUITE ANOTHER STORY STAGNATION WILL NOT BE GOOD FOR CORPORATE SALES AND PROFITS WHICH ARE ULTIMATELY DECISIVE FOR STOCK VALUES AND FOR Q THIS IS THE MAIN DANGER FOR MR CLINTON'S BULL MARKET HIS ECONOMIC PROGRAM AND HIS ELECTORAL SUCCESS IN 1994 AND 1996 MR TOBIN WINNER OF THE NOBEL PRIZE IN 1981 IS A PROFESSOR EMERITUS OF ECONOMICS AT YALE UNIVERSITY 9311300121 931130 LETTERS TO THE EDITOR BROWN'S CURRICULUM A ROUSING SUCCESS IN EXPOSING THE DECEITS COERCIVE TACTICS AND BANKRUPT PATERNALISM OF THE CLINTON HEALTH PLAN YOU ARE DOING GREAT SERVICE TO THE NATION ALAS IN HIS ASSAULT ON IRA MAGAZINER ROBERT J BARRO FIRED A VOLLEY OF MISINFORMATION ABOUT THE CURRICULUM MR MAGAZINER AND OTHERS DEVELOPED AT BROWN UNIVERSITY THE NEW SOCIALISM EDITORIAL PAGE OCT 25 MR BARRO GOT THE HISTORY WRONG FOR STARTERS HE THINKS BROWN ADOPTED THE CURRICULUM BECAUSE THE UNIVERSITY WAS CAUGHT UP IN THE HYSTERIA OF THE CAMBODIAN INVASION MR MAGAZINER AND HIS GROUP WORKED ON THEIR CURRICULUM PROPOSAL IN THE LATE 1960S AND IT WAS ADOPTED BY THE FACULTY IN 1969 MORE THAN A YEAR BEFORE THE CAMBODIAN INVASION NOR WAS THERE ANY HYSTERIA AT BROWN AS AT MOST UNIVERSITIES THE CURRICULUM IS THE PROVINCE OF THE FACULTY BROWN'S FACULTY ADOPTED THE NEW CURRICULUM AFTER LONG CONSIDERATION AND REVISION MANY OF THE IDEAS IN MR MAGAZINER'S CURRICULUM WERE CURRENT ON CAMPUS SOME HAD THEIR ROOTS IN THEORIES DEVELOPED BY PRESIDENT WAYLAND IN THE 1850S MOST EGREGIOUSLY MR BARRO SAID THE BROWN CURRICULUM WAS REJECTED IN THE MARKETPLACE AND EVENTUALLY DIED OUT BY ANY STANDARD ESPECIALLY BY THOSE OF THE MARKETPLACE THE BROWN CURRICULUM HAS BEEN A ROUSING SUCCESS AND SHOWS PLENTY OF LIFE AND PROMISE AFTER MORE THAN 20 YEARS BROWN'S APPLICANT POOL SURGED AFTER THE NEW CURRICULUM WAS INSTITUTED THERE ARE NOW ALMOST NINE APPLICANTS FOR EVERY POSITION IN THE MATRICULATING CLASS BROWN ACCEPTS ABOUT 23 OF ITS APPLICANT POOL CREATING ONE OF THE MOST TALENTED SELECT AND DIVERSE STUDENT BODIES IN THE NATION FACULTY SUPPORT FOR THE CURRICULUM HAS BEEN CONSISTENTLY SOLID AND VOCAL RECORD NUMBERS OF BROWN GRADUATES GAIN ADMISSION TO THE MEDICAL BUSINESS LAW OR GRADUATE SCHOOL OF THEIR CHOICE ANOTHER MARKET INDICATOR FINALLY MR BARRO AND MOST OTHER CONSERVATIVE OBSERVERS SEEM TO MISS THE ESSENTIAL POINT OF THE BROWN CURRICULUM CHOICE IT ASSUMES THAT BRIGHT YOUNG PEOPLE ARE CAPABLE OF FINDING THEIR OWN WAY TO A LIBERAL EDUCATION OF SEEKING GUIDANCE WHEN THEY NEED IT OF ASKING QUESTIONS AND MAKING CONNECTIONS IT WAS THIS AFFIRMATION OF INDIVIDUAL CHOICE AND RESPONSIBILITY THAT ATTRACTED ME A CONSERVATIVE REPUBLICAN THEN AND STILL TO BROWN AFTER READING THE DRAFT OF THE CLINTON HEALTH PLAN I WANTED TO ASK IRA MAGAZINER WHEN HE LOST HIS FAITH IN THE INDIVIDUAL BY RELYING ON THE INDIVIDUAL THE BROWN CURRICULUM HAS WORKED SIGNIFICANTLY IT STANDS AS MR MAGAZINER'S MOST AND PERHAPS ONLY SUCCESSFUL INSTITUTIONAL REFORM 9311300120 931130 FIRST FINANCIAL BANCORP HAMILTON OHIO FIRST FINANCIAL BANCORP ADOPTED A SHAREHOLDER RIGHTS PLAN BUT SAID THAT IT ISN'T A RESPONSE TO ANY ACQUISITION OFFER AND THE COMPANY ISN'T AWARE OF ANY SUCH OFFER UNDER THE PLAN ONE RIGHT IS GRANTED FOR EACH SHARE OF COMMON STOCK OUTSTANDING EFFECTIVE DEC 6 TO SHAREHOLDERS OF RECORD THAT DAY EACH SHARE ISSUED AFTER THAT DATE WILL ALSO HAVE ONE RIGHT ATTACHED TO IT THE PLAN IS NOT INTENDED TO PREVENT AN ACQUISITION OF THE CORPORATION FOR A FAIR PRICE THE COMPANY SAID 9311300119 931130 ANALYSIS & TECHNOLOGY UNIT PACT NORTH STONINGTON CONN APPLIED SCIENCE ASSOCIATES INC SAID IT GOT A SUBCONTRACT VALUED AT ABOUT 3 MILLION FROM AMERICAN TELEPHONE & TELEGRAPH CO'S NCR FEDERAL SYSTEMS DIVISION TO DEVELOP INTERACTIVE MULTIMEDIA TRAINING PROGRAMS FOR THE FEDERAL AVIATION ADMINISTRATION APPLIED SCIENCE IS A UNIT OF ANALYSIS & TECHNOLOGY INC THE COMPANY SAID THE SUBCONTRACT CALLS FOR THE CONVERSION OF EXISTING FAA CLASSROOM TRAINING COURSES TO AN INTERACTIVE MULTIMEDIA FORMAT THE COMPANY SAID THE WORK WILL TAKE ABOUT TWO YEARS TO COMPLETE AND WILL BE DONE AT ITS LANDOVER MD OFFICE 9311300118 931130 REVIEW & OUTLOOK EDITORIAL ASIDES TRUDEAU V MILKEN AS AFICIONADOS OF THE MICHAEL MILKEN STORY KNOW BY NOW MR MILKEN IS TEACHING A HUGELY POPULAR FINANCE COURSE AT UCLA'S BUSINESS SCHOOL AMONG THOSE AFICIONADOS APPARENTLY IS GARRY TRUDEAU AUTHOR OF DOONESBURY WHICH HAS BEEN RAILING AGAINST THE UCLA CLASSES SO UPSET IS MR TRUDEAU THAT HE HAS EVEN RELEASED A STATEMENT DENOUNCING THE UCLA STUDENTS AS VENAL LITTLE TWITS WITH THE SCHOOL ITSELF BRANDED AS SHAMELESS AND UNPRINCIPLED SOUNDS LIKE FIGHTIN' WORDS TO US A PROPOSAL MR TRUDEAU SHOULD COME TO UCLA TO TEACH WHAT HE KNOWS THE FIRST DON WHOSE CLASS ENROLLMENT FALLS BELOW 10 STUDENTS LOSES CALL IT A MARKET SOLUTION 9311300117 931130 LETTERS TO THE EDITOR HOLES IN INSURANCE NET THOUGH YOU PROVIDED A GOOD GUIDE FOR AVOIDING FINANCIAL CALAMITY HARSH REALITIES CALL FOR FINANCIAL SAFETY NET OCT 22 THE NET YOU WOVE HAD TWO HOLES DRIVERS SHOULD BE SURE THAT THEIR AUTO INSURANCE POLICY INCLUDES ADEQUATE LIABILITY COVERAGE THE MINIMUMS THAT STATES REQUIRE ARE OFTEN WOEFULLY INADEQUATE DRIVERS SHOULD ALSO MAINTAIN UNINSUREDMOTORISTS COVERAGE ON THEIR POLICIES THOUGH MANY STATES REQUIRE THAT DRIVERS HAVE INSURANCE NOT ALL DRIVERS DO 9311300116 931130 REVIEW & OUTLOOK EDITORIAL CARRY A BIG CARROT IN THE ANNALS OF MUSCULAR DIPLOMACY THE US HAS HAD CARRY A BIG STICK TEDDY ROOSEVELT A DAY THAT WILL LIVE IN INFAMY FDR AND THIS WILL NOT STAND GEORGE BUSH REGARDING THE IMMINENT DANGER OF A NORTH KOREAN NUCLEAR WEAPON PRESIDENT CLINTON IS NOW OFFERING THE RATHER LESS MEMORABLE THOROUGH AND BROAD APPROACH THAT AT LEAST IS HOW THE CLINTON TEAM IS ADVERTISING ITS LATEST NEW POLICY TOWARD THE RENEGADE REGIME IN PYONGYANG WHICH LAST MARCH RENEGED ON A 1991 PLEDGE TO ALLOW INSPECTIONS OF ITS NUCLEAR FACILITIES JUST ABOUT EVERYONE WHO'S SERIOUS ASSUMES THE NORTH KOREANS ARE BUILDING A BOMB WITH OMINOUS IMPLICATIONS FOR US INTERESTS IN ASIA FOR EIGHT MONTHS THE NORTH HAS REJECTED AMERICAN COAXING AND DIPLOMATIC CARROTS YET INSTEAD OF GETTING TOUGHER MR CLINTON'S NEW POLICY IS TO BEAT THE NORTH WITH AN EVEN BIGGER CARROT US OFFICIALS ARE SAYING THAT IF ONLY THE NORTH WILL BUDGE ON INSPECTIONS THE US AND ITS ALLIES WILL START TREATING IT LIKE ANY OTHER COUNTRY INVESTMENT WOULD FLOW AND THE US WOULD RECOGNIZE THE GOVERNMENT OF KIM IL SUNG WHICH IS THE SAME REGIME THAT BEGAN THE KOREAN WAR 40 YEARS AGO BY INVADING THE SOUTH MR CLINTON'S BIG CARROT EVEN INCLUDES AN OFFER TO STOP TEAM SPIRIT THE JOINT USSOUTH KOREAN MILITARY EXERCISE THE NORTH KOREANS MUST BE PLEASED IF THEY'D MERELY LIVED BY THEIR 1991 COMMITMENT THEY'D STILL BE AN ISOLATED REGIME BESET BY ECONOMIC WOES BUT HAVING STIFFED THE WORLD AND THREATENED US ALLIES THEY MAY BE REWARDED WITH TRADE AID AND THE GLOBAL RESPECT THEY'VE COVETED FOR DECADES FOR BREAKING ALL OF THE RULES AGAINST PROLIFERATING WEAPONS KIM IL SUNG GETS TREATED AS A STATESMAN WE CAN DO BUSINESS WITH SADDAM HUSSEIN MUST BE THINKING THAT IF ONLY HE'D HAD A NUCLEAR WEAPON HE MIGHT STILL BE IN KUWAIT AND WE CAN ALL GUESS THE LESSONS THAT IRAN'S MULLAHS ARE DRAWING FROM THIS THE BIG CLINTON CARROT IS ALL THE MORE PUZZLING BECAUSE IT ISN'T LIKELY TO ACHIEVE WHAT IT WANTS IN KOREA OVER THE WEEKEND THE NORTH RESPONDED WITH ITS TYPICAL BLUSTER BUT DON'T BE SURPRISED IF IT SOON TRIES TO TAKE YES FOR AN ANSWER IT MAY EVEN ALLOW INSPECTIONS OF ITS YONGBYAN NUCLEAR FACILITY BUT THAT SHOULDN'T REASSURE ANYONE SAVE PERHAPS THE HEADINTHESAND CROWD AT THE INTERNATIONAL ATOMIC ENERGY AGENCY IAEA A SOCIETY AS CLOSED AS THE NORTH'S COULD EASILY BUILD A WEAPON ELSEWHERE SADDAM ALSO ALLOWED INSPECTIONS AFTER ALL AND THE SAME IAEA TOLD US NOT TO WORRY THE NORTH'S PROBABLE STRATEGY WILL BE TO FORCE A COMPROMISE THAT ALLOWS SOME INSPECTIONS BUT KEEPS MOST OF THE COUNTRY OFFLIMITS IT ALMOST CERTAINLY WON'T ALLOW GENUINE CHALLENGE INSPECTIONS WHICH WERE PART OF THE 1991 DEAL AND WHICH ALLOWED OUTSIDERS TO PROBE OTHER SUSPECT SITES THE NORTH MIGHT EASILY CONCLUDE FROM US BEHAVIOR SO FAR THAT MR CLINTON WOULD PREFER TO DECLARE VICTORY RATHER THAN FACE THE CONSEQUENCES OF A CONFRONTATION MEANWHILE THE NORTH COULD CONTINUE DOING WHATEVER IT IS DOING IN SECRET THE REST OF THE WORLD OF COURSE WILL UNDERSTAND WHAT THE NORTH WILL HAVE GOT AWAY WITH SOUTH KOREA AND JAPAN IN PARTICULAR WILL BEGIN TO QUESTION THE AMERICAN SECURITY COMMITMENT PERHAPS MOVING TO DEVELOP NUCLEAR WEAPONS THEMSELVES WE NOTED WITH INTEREST THE NOV 14 STORY IN THE INDEPENDENT NEWSPAPER THAT BRITAIN IS TALKING ABOUT SELLING REPROCESSED PLUTONIUM FROM ITS THORP PROJECT TO SOUTH KOREA DESPITE ITS RHETORIC ABOUT NONPROLIFERATION THE CLINTON KOREA POLICY MAY BE OPENING PANDORA'S BOX WHAT'S THE ALTERNATIVE IT IS TO KEEP THE PRESSURE ON IF CHINA WON'T HELP ON ECONOMIC SANCTIONS WORK WITH JAPAN AND SOUTH KOREA TO CUT OFF THE 700 MILLION IN HARD CURRENCY REMITTED EACH YEAR TO THE NORTH BY KOREAN EXILES THOSE WHO SAY A MILITARY STRIKE AGAINST THE NORTH'S REACTORS WOULD BE MORE DANGEROUS THAN USEFUL MAY WELL BE RIGHT BUT THE US COULD STILL UNDERSCORE ITS COMMITMENT TO KOREA BY HOLDING TEAM SPIRIT AND STRENGTHENING ITS CONVENTIONAL MILITARY PRESENCE WE'D ALSO SUPPORT A US OR UNITED NATIONS EFFORT TO STOP NORTH KOREAN SHIPS FROM DELIVERING MISSILES TO THE MIDDLE EAST SUCH AN EFFORT WOULD DEMONSTRATE THAT THE WORLD REALLY IS SERIOUS ABOUT STOPPING THE SPREAD OF DANGEROUS WEAPONS IN THE END THE ONLY CERTAIN NONPROLIFERATION POLICY TOWARD NASTY CLOSED REGIMES SUCH AS NORTH KOREA'S IS TO CHANGE THE GOVERNMENT CONTAINMENT WORKED AGAINST THE SOVIET UNION WHILE ENGAGEMENT WITH IRAQ IN THE 1970S AND 1980S OBVIOUSLY DIDN'T CHANGE SADDAM HUSSEIN WE FEAR THAT MR CLINTON'S ALLCARROT DIPLOMACY WILL FARE NO BETTER IN NORTH KOREA THAN A SIMILAR POLICY ONCE DID IN IRAQ 9311300115 931130 BUSINESS BRIEF KELLEY OIL CORP NATURALGAS WELL COMPLETED IN TERREBONNE PARISH LA KELLEY OIL CORP HOUSTON SAID IT COMPLETED A NATURALGAS DEVELOPMENT WELL IN LOUISIANA THE WELL HERBERT COX NO 2 IN THE ORANGE GROVE AREA OF TERREBONNE PARISH LA TESTED AT AN AVERAGE DAILY RATE OF 53 MILLION CUBIC FEET OF NATURAL GAS FROM DEPTHS OF 12191 FEET TO 12206 FEET KELLEY OIL IS MANAGING GENERAL PARTNER OF KELLEY OIL & GAS PARTNERS LTD WHICH OWNS A 333 WORKING INTEREST IN THE WELL AND OF KELLEY PARTNERS 1992 DEVELOPMENT DRILLING PROGRAM WHICH OWNS THE REMAINING 667 WORKING INTEREST 9311300114 931130 ROPAK EXPECTS 4THQUARTER GAIN FULLERTON CALIF ROPAK CORP SAID IT EXPECTS TO POST A FOURTHQUARTER 25 MILLION PRETAX GAIN FROM THE SALE OF ONE MILLION SHARES OF INVITRO INTERNATIONAL TO VULCAN PACKAGING INC IN TORONTO ROPAK SAID ITS SALE OF INVITRO STOCK AROSE THROUGH THE EXERCISE BY VULCAN OF AN OPTION THAT WAS ACCORDED IN APRIL WHEN ROPAK ACQUIRED CERTAIN OPERATIONS FROM VULCAN IN THE 1992 FOURTH QUARTER ROPAK A MAKER OF SHIPPING CONTAINERS HAD NET INCOME OF 85000 OR TWO CENTS A SHARE ON SALES OF 182 MILLION ROPAK STOCK ROSE 50 CENTS OR 77 TO 7 A SHARE YESTERDAY IN TRADING ON THE NASDAQ STOCK MARKET 9311300113 931130 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 1/16 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 44 DAYS 333 45 TO 69 DAYS 331 70 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 345 60 DAYS 343 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 272 TWO MONTHS 273 THREE MONTHS 282 SIX MONTHS 299 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 330 ONE MONTH 331 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 335 30 DAYS 325 60 DAYS 326 90 DAYS 327 120 DAYS 328 150 DAYS 328 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 9/16 3 7/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 9/16 ONE MONTH 3 1/2 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 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 707 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 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 706 60 DAYS 716 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 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 9311300112 931130 GTE UNIT GETS 68 MILLION JOB NEEDHAM MASS GTE GOVERNMENT SYSTEMS A UNIT OF GTE CORP SAID IT RECEIVED A 68 MILLION AIR FORCE CONTRACT FOR A COMMUNICATIONS SYSTEM THAT DEMONSTRATES THE CAPABILITIES OF COMMERCIAL COMMUNICATIONS EQUIPMENT USED TO SUPPORT DEPLOYED AIR BASES IN A NEWS RELEASE THE COMPANY SAID THE CONTRACT CAN BE EXERCISED THROUGH 1998 TO BRING THE ESTIMATED CONTRACT VALUE TO 85 MILLION THE CONTRACT IS PART OF A PROGRAM DESIGNED TO DEFINE AIR FORCE REQUIREMENTS FOR A 1996 PRODUCTION CONTRACT TO REPLACE OR UPGRADE EXISTING DEPLOYEDCOMMUNICATIONS SYSTEMS 9311300111 931130 ROCKY MOUNT UNDERGARMENT CO ROCKY MOUNT NC ROCKY MOUNT UNDERGARMENT CO SAID IT REACHED A REORGANIZATION AGREEMENT WITH ITS CREDITOR COMMITTEE PROVIDED THE AGREEMENT RECEIVES COURT APPROVAL THE MANUFACTURER OF WOMEN AND CHILDREN'S INTIMATE APPAREL SAID IT EXPECTS TO EMERGE FROM BANKRUPTCY PROCEEDINGS BY DEC 31 9311300110 931130 NORTH COAST'S DRILLING PROGRAM CLEVELAND NORTH COAST ENERGY INC SAID IT OVERSUBSCRIBED ITS LATEST DRILLING PROGRAM FOR 23 NATURALGAS AND OIL WELLS IN THE APPALACHIAN BASIN IN WESTERN PENNSYLVANIA AND OHIO THE PROGRAM IS THE COMPANY'S SECOND THIS YEAR THAT BRINGS THE OIL AND GAS EXPLORATION COMPANY'S TOTAL DRILLING PROGRAM FOR THE YEAR TO 41 WELLS THE COMPANY OWNS A 30 INTEREST IN THE WELLS AS WE ENTER THE PEAK DEMAND SEASON FOR NATURAL GAS WE ARE VERY OPTIMISTIC ABOUT FURTHER INCREASES IN GAS PRODUCTION AND REVENUES COMPANY PRESIDENT GARRY REGAN SAID IN A NEWS RELEASE 9311300109 931130 BATTERED JAPANESE STOCKS MAY HAVE FURTHER TO FALL BY QUENTIN HARDY AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO TWO QUESTIONS DOMINATE THE PLUMMETING JAPANESE STOCK MARKET WHERE'S THE BOTTOM AND WHERE'S THE GOVERNMENT THE ANSWERS WHICH ARE INTERTWINED HOLD THE KEY TO WHEN THE TOKYO STOCK MARKET'S SHARP FALL MAY END TOKYO'S BENCHMARK NIKKEI225 STOCK AVERAGE PLUNGED 64766 OR 39 TO 1607871 A NEW LOW FOR THE YEAR MONDAY IN BRISK TRADING IN TUESDAY MORNING'S SESSION THE NIKKEI FELL A FURTHER 6851 POINTS AT 1601020 DESPITE REPORTS THAT KEY JAPANESE MINISTRIES WILL HOLD EMERGENCY MEETINGS TO COME UP WITH MEASURES TO BAIL OUT JAPAN'S TROUBLED FINANCIAL SYSTEM MONDAY'S DECLINE WAS THE SHARPEST THIS YEAR AND CAPS A MASSIVE SELLOFF THAT HAS CUT SHARE PRICES 20 IN THE PAST FOUR WEEKS AND THE SLIDE SHOWS NO SIGN OF ABATING WITH THE NIKKEI DOWN 5 ON THE YEAR ALARM BELLS ARE GOING OFF IN THE BOARDROOMS OF JAPANESE BANKS AND LIFEINSURANCE COMPANIES AT THESE LEVELS INSURERS FACE PORTFOLIO LOSSES THAT WILL MAKE IT HARDER TO PAY OFF POLICYHOLDERS WHILE JAPANESE CORPORATIONS FACE POTENTIAL WRITEDOWNS ON STOCKHOLDINGS MOREOVER JAPAN'S BANKS NEED TO START TO SQUEEZE BORROWERS WHO USED STOCKS FOR LOAN COLLATERAL WHILE OTHER FINANCIAL MARKETS FLIRT WITH HIGHS TOKYO IS THE ONLY MAJOR STOCK MARKET WHERE INVESTORS ARE SITTING ON LOSSES FOR THE YEAR THERE'S NO CONFIDENCE ABOUT THE FUTURE SAID EINOSUKE YOSHINO SENIOR VICE PRESIDENT OF CAPITAL RESEARCH INTERNATIONAL AN INSTITUTIONAL INVESTOR HE BELIEVES THE NIKKEI WILL FALL BELOW 15000 AND PANIC SELLING COULD EVEN TAKE PRICES TO 14000 RETAIL INVESTORS PARTICULARLY HAVE BEEN BAILING OUT ADDS SHIGERU AKIBA HEAD OF YENEQUITY TRADING AT UBS SECURITIES THEY THOUGHT THE NIKKEI WOULD STAY OVER 17000 AND NOW THEY'RE RUSHING TO SELL THE LAST TIME TOKYO PLUNGED LIKE THIS TO ITS 1992 LOW OF 14309 THE GOVERNMENT INTERVENED TO STOKE A REBOUND IT LET JAPAN'S DEBTRIDDEN BANKS KEEP THEIR STOCK LOSSES HIDDEN AND CAME UP WITH NEW TAX BREAKS TO HELP WITH PROBLEM REALESTATE HOLDINGS THE GOVERNMENT'S STATERUN INVESTMENT FUNDS ALSO POURED TRILLIONS OF YEN INTO STOCKS EFFECTIVELY ACTING AS THE MARKET'S BUYER OF LAST RESORT SO FAR THAT ISN'T HAPPENING THIS TIME AND THAT IN THE SHORT TERM IS TERRIBLE FOR STOCKS TETSUO TSUKIMURA CHIEF ECONOMIST IN JAPAN FOR SMITH BARNEY SHEARSON INC SAID THE MARKET WILL TEST NEW LOWS BELOW 14000 HOW LOW HE SAYS PERHAPS 12000 ADDS A SENIOR OFFICIAL AT THE BANK OF JAPAN I'M WORRIED ABOUT THE EFFECT OF THE CRASH ON THE REAL ECONOMY SPENDING DEPENDS SO MUCH ON SENTIMENT HE SAID AND TOKYO'S STOCK COLLAPSE DEPRESSES CONSUMER CONFIDENCE FURTHER THAT COULD PROLONG JAPAN'S WORST DOWNTURN SINCE WORLD WAR II INDEED ALTHOUGH THE NIKKEI INDEX IS WITHIN STRIKING DISTANCE OF LAST YEAR'S BOTTOM OF 14309 JAPAN'S NEW REFORMIST GOVERNMENT ISN'T SHOWING ANY SIGNS IT INTENDS TO TRY TO STEM THE PLUNGE I DON'T HAVE ANY SPECIFIC REACTION TO THE TREND IN THE STOCK MARKET SAID MASAYOSHI TAKEMURA CHIEF CABINET SECRETARY AT A NEWS CONFERENCE MONDAY FINANCE MINISTRY VICE MINISTER JIRO SAITO ADDED THAT THE GOVERNMENT ISN'T TAKING ANY MEASURES TO REACT TO THE MARKET PLUNGE WHY ISN'T THE GOVERNMENT STEPPING IN FIRST PRIME MINISTER MORIHIRO HOSOKAWA IS PREOCCUPIED WITH THE GOVERNMENT'S TOP PRIORITY POLITICAL REFORM LEGISLATION IS FACING UNEXPECTED TURBULENCE IN THE UPPER HOUSE WHICH MUST ACT ON THE BILLS BY MIDDECEMBER ON MONDAY TRADE AND INDUSTRY MINISTER HIROSHI KUMAGAI SAID THE CABINET WON'T TURN TO THE ECONOMY UNTIL REFORM IS CLEARED SECOND MORE AND MORE JAPANESE FEAR THAT MR HOSOKAWA DOESN'T HAVE AN ECONOMIC POLICY AND DOESN'T EVEN HAVE A METHOD TO SHAPE ONE A FORMER GOVERNOR WITH LITTLE NATIONAL POLITICAL EXPERIENCE MR HOSOKAWA DOESN'T HAVE ANY ECONOMIC TRACK RECORD HE HAS MADE A NUMBER OF GENERAL STATEMENTS ABOUT THE NEED FOR DEREGULATION BUT THAT WOULD ONLY BENEFIT THE ECONOMY IN THE LONGER TERM ASK A BUREAUCRAT A BUSINESSMAN EVEN POLITICIANS WHO IS SHAPING THE GOVERNMENT'S ECONOMIC POLICIES AND THE QUESTION DRAWS A BLANK STARE THERE ARE A LOT OF PEOPLE INVOLVED IN THE PROCESS BUT THERE'S NOT ANY ONE PERSON SAID A WESTERN DIPLOMAT IN FACT THE OPPOSITION LIBERAL DEMOCRATIC PARTY WHICH WAS SWEPT FROM OFFICE BY MR HOSOKAWA SEES THE MARKET CRASH AS AN OPENING TO SCORE POINTS THE STOCK AVERAGE WAS OVER 20000 WHEN THE HOSOKAWA CABINET WAS FORMED IN AUGUST SAID CHIOKI TAKANO A TOP POLICY AIDE FOR THE LDP I THINK STOCK PRICES REFLECT THE FACT THAT PEOPLE DO NOT PLACE HIGH HOPES ON THE CABINET'S ECONOMIC POLICIES THE LDP COULD USE THAT CARD TO TRY TO DELAY REFORM UNTIL A THOROUGH DEBATE ON ECONOMIC POLICY IS HELD THAT'S A FORMULA FOR GRIDLOCK THAT COULD EXACERBATE THE NIKKEI'S FALL SOME ANALYSTS SAY MR HOSOKAWA AND THE FINANCE MINISTRY KNOW EXACTLY WHAT THEY ARE DOING BY SOME CALCULATIONS THE BANKS CAN WITHSTAND A PLUNGE IN THE NIKKEI TO 13000 BEFORE THEIR CREDIT RATINGS BEGIN TO SUFFER AND FROM THE STANDPOINT OF MANY CORPORATIONS STOCK PRICES MATTER MOST ON MARCH 31 THE END OF THE JAPANESE FISCAL YEAR WHEN THEY ANNUALLY MARK THEIR SECURITIES HOLDINGS TO MARKET BESIDES PAST SHORTTERM FIXES TO BOOST THE MARKET AND THE ECONOMY THROWING MONEY AT THE PROBLEM DIDN'T HAVE A LONGTERM IMPACT MANY POLICYMAKERS FEEL THAT JAPAN'S ECONOMY NEEDS TO GO THROUGH A MAJOR PAINFUL RESTRUCTURING AND NOW IS A GOOD TIME TO FACE UP TO THE PROBLEM THERE IS A DIEHARD VIEW AMONG JAPANESE GOVERNMENT ECONOMIC OFFICIALS THAT WE HAVE NOT YET DONE THE FULL SURGERY TO PURGE THE ECONOMIC EXCESSES OF THE LATE 1980S BUBBLE ECONOMY SAYS YUKIO OKAMOTO A FORMER BUREAUCRAT WHO NOW RUNS A BUSINESS AND POLITICAL CONSULTING FIRM MANY PEOPLE HOLD THE VIEW THAT THOSE WHO MADE MONEY DURING THE BUBBLE YEARS HAVE TO SUFFER MORE SOME CHANGES ARE ALREADY HAPPENING FOR INSTANCE TOKYO'S SKYHIGH PRICETOEARNINGS RATIOS ARE BEGINNING TO COME TO EARTH WHILE THE MARKET STILL TRADES AT A P/E RATIO OF ABOUT 70 ELSEWHERE IN THE WORLD A P/E RATIO OF 30 IS CONSIDERED HIGH THAT'S MOSTLY DISTORTED BY BANK STOCKS TAKE THE BANKS OUT OF THE NIKKEI EQUATION AND TOKYO'S P/E RATIO IS ABOUT 40 BUT SOME INDIVIDUAL STOCKS LOOK POSITIVELY CHEAP NINTENDO CO HAS A P/E RATIO OF 14 AND FUJI PHOTO FILM CO'S IS 15 OTHER STOCKS ARE BECOMING COMPETITIVE ON A YIELD BASIS THE 21 DIVIDEND YIELD PAID BY OIL COMPANY GENERAL SEKIYU KK IS MORE THAN INVESTORS CAN EARN IN JAPAN'S SHORTTERM MONEY MARKET FOR THAT REASON FOREIGN INVESTORS INCLUDING CASHRICH US MUTUAL FUNDS THAT WERE SHYING AWAY FROM JAPANESE STOCKS PUT 80 BILLION YEN 740 MILLION OF NET NEW FUNDS INTO TOKYO IN THE THIRD WEEK OF NOVEMBER THE MOST RECENT WEEK FOR WHICH FIGURES ARE AVAILABLE STILL ANALYSTS WARN AGAINST TOO MUCH ENTHUSIASM THE MARKET THEY SAY STILL HAS FURTHER TO FALL THERE'S NO RUSH TO BUY JAPANESE STOCKS SAID ANDREW MCGRATH STRATEGIST AT CREDIT SUISSE PEOPLE WILL BE DUMPING EVERYTHING GOOD STOCKS WILL BE CHEAP MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE SEE RELATED ARTICLE BUT STRATEGIST WITH TWO YARDSTICKS SAYS IT'S TIME TO PURCHASE TOKYO SHARES WSJ NOV 30 1993 9311300108 931130 WHO'S NEWS DIED JRD TATA 89 CHAIRMAN OF TATA SONS LTD AN INDIAN HOLDING COMPANY MONDAY IN SWITZERLAND 9311300106 931130 RETAILING MANUFACTURERS START TO SPURN BIG DISCOUNTERS BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN LOREN LIEBSCHER OWNER OF THE TRUE VALUE HARDWARE STORE IN HYDRO OKLA DISCOVERED THAT TOY MAKER STEP 2 CORP WON'T SELL TO WALMART STORES INC HE STOCKED TOYS FROM STEP 2 INSTEAD OF ONES FROM ITS COMPETITOR IF YOU HAVE A DIFFERENT PRODUCT YOU DON'T HAVE TO WORRY ABOUT MATCHING A PRICE OF 5995 AND NOT MAKING ANY MARGIN MR LIEBSCHER SAYS STEP 2 IS AMONG A SMALL BUT GROWING NUMBER OF MANUFACTURERS THAT ARE DELIBERATELY SPURNING WALMART AND CERTAIN OTHER MASS MERCHANDISERS WITH MIGHTY RETAILING CLOUT A MAJOR REASON THE MANUFACTURERS CAN'T CONTROL THE HUGE DISCOUNTS AT WHICH THE RETAILERS SELL THEIR PRODUCTS WALMART IS SO BIG AND POWERFUL IF THEY DECIDE THEY WANT TO GIVE YOUR PRODUCT AWAY THEY'LL GIVE IT AWAY SAYS THOMAS MURDOUGH PRESIDENT AND FOUNDER OF STEP 2 A CLOSELY HELD STREETSBORO OHIO MAKER OF LARGE PLASTIC TOYS AND GARDEN PRODUCTS SOME MANUFACTURERS SPURN ALL MASS MERCHANDISERS FIGURING THEY CAN DO BETTER SELLING TO INDEPENDENT STORES OR COOPERATIVES SUCH AS COTTER & CO'S TRUE VALUE OR ACE HARDWARE CORP WHICH HAVE SEVERAL THOUSAND AFFILIATED STORES APIECE WE FEEL OUR PRODUCTS ARE BEST REPRESENTED WHERE PEOPLE GO TO CHURCH ON SUNDAY WITH THEIR CUSTOMERS SAYS PHILLIP MERRILL PRESIDENT OF BRENCON ENERGY PRODUCTS INC A CLIO MICH MAKER OF WEATHERIZATION PRODUCTS BOB HILL VICE PRESIDENT OF SASHCO SEALANTS INC AGREES THE ONLY ISSUE WITH THE MASS MERCHANTS IS PRICE PRICE AND PRICE HE SAYS THE COMMERCE CITY COLO MAKER OF LEXEL AND BIG STRETCH CAULKS WON'T SELL TO HOME DEPOT INC WALMART WABAN INC'S HOMEBASE OR KMART CORP AND ITS BUILDERS SQUARE SUBSIDIARY STILL OTHERS SUCH AS LAWNPRODUCTS MAKER SCOTTS CO SELL ONLY CERTAIN PRODUCT LINES TO THE MASS MERCHANTS WHILE KEEPING OTHERS FOR SALE TO INDEPENDENT STORES BUT STEP 2 HAS ADDED ANOTHER WRINKLE IT SELLS TO SOME MASS MERCHANTS SUCH AS TOYS R US INC KMART AND DAYTON HUDSON CORP'S TARGET BUT NOT TO WALMART OR WAREHOUSE CLUBS IT HAS AN UNDERSTANDING WITH ITS PREFERRED RETAILERS THAT ITS TOYS WON'T BE FOOTBALLED THAT IS OFFERED BELOW A CERTAIN PRICE TO LURE SHOPPERS INTO A STORE OUR RETAILERS HAVE GOT TO MAKE MONEY SAYS MR MURDOUGH THAT ATTITUDE BUILDS LOYALTY FROM RETAILERS WHICH MUST DEVOTE LOTS OF WAREHOUSE AND FLOOR SPACE TO ACCOMMODATE STEP 2'S PLASTIC TUGBOATSHAPED SANDBOXES AND OUTDOOR CLIMBERS SOME OF WHICH ARE MORE THAN SIX FEET TALL AND WEIGH 159 POUNDS MR MURDOUGH SAYS BIG DISCOUNTS CONDITION CONSUMERS TO BUY ONLY WHEN ITEMS ARE MARKED DOWN THE RETAILER REALIZES AT YEAR END THAT IT ISN'T MAKING MONEY AND DEMANDS NEW PRODUCTS IGNORING THE MANUFACTURER'S INVESTMENT IN TOOLS MACHINES AND EMPLOYEES STEP 2'S MANUFACTURING PROCESSES REQUIRE HEAVY CAPITAL INVESTMENT IN ROTATIONAL MOLDING MACHINES THAT FORGE PLASTIC PELLETS INTO TOYS FOR EXAMPLE ITS ALTOGETHER PLASTIC KITCHEN REQUIRED AN INVESTMENT OF 850000 IT SELLS FOR ABOUT 115 ADS SUCH AS THOSE RUN RECENTLY BY TWO WALMART STORES IN OHIO ILLUSTRATE MR MURDOUGH'S POINT THEY FEATURE THE TOYS OF STEP 2'S CHIEF COMPETITOR LITTLE TIKES CO AT AS MUCH AS 10 BELOW WHOLESALE COST LITTLE TIKES WHICH INCURRED THE WRATH OF ITS OTHER RETAILERS COMPLAINED TO WALMART'S HEADQUARTERS IN BENTONVILLE ARK LITTLE TIKES ALSO REFUSED TO HELP PAY FOR THE ADS BECAUSE THE PROMOTIONS VIOLATED ITS LIST OF MINIMUM AD PRICES A WALMART SPOKESMAN DEFENDS THE PRACTICES ALL RETAILERS NATIONAL OR OTHERWISE USE LOSS LEADERS WHICH STARTED SOME TIME RIGHT AFTER CHRISTOPHER COLUMBUS LANDED HE ADDS THAT WALMART IS NOT IN THE HABIT OF USING TOO MANY LOSS LEADERS BECAUSE WE'RE IN BUSINESS TO MAKE A PROFIT MR MURDOUGH FOUNDED LITTLE TIKES IN 1970 AND SOLD IT IN 1984 TO RUBBERMAID INC HE STAYED ON FOR FIVE YEARS NURTURING LITTLE TIKES TO A 270 MILLION ANNUAL BUSINESS BUT QUIT IN A DISPUTE WITH RUBBERMAID'S THENCHAIRMAN STANLEY GAULT OVER DISCOUNTING MR MURDOUGH STARTED STEP 2 TWO YEARS AGO HE EXPECTS THE COMPANY'S SALES TO BE IN THE 40 MILLION RANGE THIS YEAR DOUBLE THAT OF LAST YEAR STEP 2 IS REVIVING RETAILING PRACTICES THAT BEGAN CRUMBLING IN THE EARLY 1980S SAYS GEORGE ROSENBAUM CHIEF EXECUTIVE OF CHICAGO RETAIL CONSULTANT LEO J SHAPIRO & ASSOCIATES DEPARTMENT STORES DIFFERENTIATED THEMSELVES BY BEING THE SOURCES OF CERTAIN BRANDS THAT WEREN'T AVAILABLE AT RIVAL STORES MERCHANDISE SOLD AT BLOOMINGDALE'S WOULDN'T BE SOLD AT MACY'S THE LINES OF EXCLUSIVITY BEGAN BLURRING WITH THE EMERGENCE OF DISCOUNT STORES AND HUGE CATEGORY KILLER STORES SUCH AS TOYS R US THEN STORES LIKE SEARS AND JC PENNEY ADDED MORE NATIONAL BRANDS DISCRIMINATION AMONG RETAILERS IS MOSTLY A MARKETING PLOY MR ROSENBAUM SAYS WHEN STEP 2 SAYS IT'S NOT GOING TO SELL TO WALMART IT'S GOT A LEG UP WITH KMART AND TOYS 'R' US HE SAYS BUT SUCH PRACTICES MAY RUN AFOUL OF THE CLINTON ADMINISTRATION ASSISTANT ATTORNEY GENERAL ANNE BINGAMAN HAS SAID THAT THE JUSTICE DEPARTMENT WILL TREAT AS ILLEGAL CASES OF SOCALLED VERTICALPRICING AGREEMENTS WHERE MANUFACTURERS IMPOSE A MINIMUM RETAIL PRICE ON THEIR PRODUCTS HOWEVER THE JUSTICE DEPARTMENT HASN'T BROUGHT A VERTICALRESTRAINT CASE SINCE 1980 CONSUMER ADVOCATES CHARGE THAT SUCH PRICING ARRANGEMENTS SEEK TO WIPE OUT DISCOUNT RETAILERS MR MURDOUGH SAYS THE ARRANGEMENTS HELP THE ECONOMY BECAUSE THEY CREATE AND KEEP JOBS BY MAINTAINING ADEQUATE PROFIT MARGINS FOR BOTH RETAILERS AND MANUFACTURERS IN TWO YEARS HIS FIRM HAS GROWN TO 600 EMPLOYEES IN OHIO IN CONTRAST TO THE REST OF THE TOY INDUSTRY WHICH MAKES ABOUT 85 OF ITS PRODUCTS OVERSEAS OF COURSE CONSUMERS PREFER GETTING THINGS ON SALE LINDA WILSON WHO RUNS A DAYCARE CENTER IN WILMINGTON NC CHECKED THE PRICE OF THE LITTLE TIKES TREEHOUSE AT WALMART THEN BOUGHT IT AT TOYS R US FOR 20 LESS BUT AT TOYS R US SHE PAID FULL PRICE FOR STEP 2'S SEA CLIPPER A TWOSEAT ROCKER WITH A JINGLING BELL SHE SAYS SHE DIDN'T MIND BECAUSE THE 30 ITEM WASN'T AVAILABLE AT WALMART AND NOW WITH STEP 2 IN HIS PRODUCT ARSENAL MR LIEBSCHER THE HARDWARE MERCHANT FROM HYDRO POP 1000 FOR THE FIRST TIME FEELS EMBOLDENED ENOUGH TO TAKE ON WALMART DIRECTLY THIS CHRISTMAS SEASON HE'LL ADVERTISE STEP 2'S TOYS IN THE BIGGER TOWN OF WEATHERFORD SEVEN MILES AWAY WHERE THE WALMART STORE IS LOCATED 9311300105 931130 TUG OF WAR BRAZIL DEBT DEAL PITS NATION AND US BANKS AGAINST DART FAMILY THE PRIVATE INVESTORS REFUSE A CHANGE OTHERS ACCEPT IN A BROAD RESTRUCTURING TOUGH IN BUSINESS WORLD TOO BY LAURIE P COHEN AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL HOW DID KENNETH DART A FOAMCOFFEECUP TYCOON WITH A PENCHANT FOR PRIVACY MANAGE TO INFURIATE BOTH BRAZIL AND A GROUP OF THE WORLD'S LARGEST COMMERCIAL BANKS ANSWER MR DART IS ALMOST SINGLEHANDEDLY HOLDING UP A 35 BILLION BRAZILIAN DEBT RESTRUCTURING THE DEAL GROWING OUT OF THREE YEARS OF TALKS BETWEEN BRAZIL AND US BANKS WAS PRESENTED FOR SIGNATURES YESTERDAY AND WAS QUICKLY ACCEPTED BY MORE THAN 700 OF BRAZIL'S CREDITORS BANKS AND INSTITUTIONAL INVESTORS IT IS SUPPOSED TO MARK BOTH THE END OF THEIR MANY YEARS OF HUGE LOSSES ON SOURED LOANS TO DEVELOPING COUNTRIES AND A NEW ECONOMIC START FOR BRAZIL BUT NOT ALL THE CREDITORS ARE BANKS AND INSTITUTIONS AMERICA'S DART FAMILY OWNS 4 OF THE DEBT WITH A FACE VALUE OF 14 BILLION THE LARGEST CHUNK OF DEVELOPINGNATION BANK LOANS EVER ACCUMULATED BY INDIVIDUALS ACCORDING TO TRADERS ITS VALUE HAS ALREADY RISEN STEEPLY SINCE THE DARTS BOUGHT IT BUT THEY STAND TO MAKE EVEN MORE IF THE RESTRUCTURING IS CARRIED OUT WITHOUT CERTAIN CHANGES THAT BRAZIL WANTS AND OTHER DEBTORS ARE ACCEPTING BRAZIL SAYS IT WON'T GO FORWARD WITHOUT A NOD FROM THE DARTS A NOD THAT KEN DART REFUSES TO GIVE THOUGH SOME BANKS AND BRAZILIANS SEE MR DART AS AN OBSTRUCTIONIST BLOCKING A PACT THAT COULD HELP RESTORE AN ENTIRE NATION TO ECONOMIC HEALTH HE SAYS HE IS MERELY TRYING TO PROTECT FAMILY INTERESTS AGAINST DECISIONS THAT WERE MADE UNILATERALLY BY THE BIG BANKS AND FINANCEMINISTRY OFFICIALS WHATEVER THE CASE MR DART 38 ISN'T A PARTICULARLY SYMPATHETIC CHARACTER HE COMES ACROSS AS CURT HAUGHTY AND SECRETIVE HIS FATHER WA DART IS ALL THAT AND LITIGIOUS BESIDES THEY HAVE MADE A FORTUNE IN A COMPETITIVE BUSINESS AND THEIR TOUGHNESS SHOWS KEN'S BROTHER THOMAS IS SUING BOTH OF THEM AND ANOTHER BROTHER ROBERT FOR ALLEGEDLY CUTTING HIM OUT OF THE FAMILY FORTUNE KEN DART PRESIDENT OF THE FOAMCUP MAKER DART CONTAINER CORP AND HIS FATHER THE CHAIRMAN RULE THE FAMILY BUSINESS AND INVESTMENT EMPIRES WITH TWO IRON FISTS THE DARTS AREN'T RELATED TO DART GROUP CORP CONTROLLED BY THE HAFTS WHO HAVE THEIR OWN FAMILY FEUD WITH THE DARTS SO COMPETITIVE IT ISN'T SURPRISING THAT THE BANKS AND BRAZILIANS HAVE HAD LITTLE LUCK IN GETTING THEM TO GO ALONG DESPERATE TO SALVAGE THE PACT CITICORP VICE CHAIRMAN WILLIAM RHODES SOUGHT TO RESOLVE THE CONFLICT IN A FACETOFACE MEETING WITH KEN DART ON SEPT 15 IN A SMALL CONFERENCE ROOM AT THE TETERBORO NJ AIRPORT NEAR NEW YORK MR RHODES INSISTENTLY URGED MR DART TO ACQUIESCE WITHIN MINUTES POLITE CHAT TURNED INTO A SHOUTING MATCH MR DART STRODE OUT TO HIS 10PASSENGER JETSTAR AND FLEW AWAY MEANWHILE THE HEAD OF BRAZIL'S CENTRAL BANK PEDRO MALAN AND BRAZILIAN DEBT NEGOTIATOR ANDRE LARA RESENDE HAVE APPEALED FOR HELP FROM SALOMON BROTHERS THROUGH WHICH THE DARTS BOUGHT MOST OF THEIR BRAZILIAN LOANS THE TWO OFFICIALS HAVE MET WITH SALOMON INC CHIEF EXECUTIVE DERYCK MAUGHAN URGING HIM TO PUT PRESSURE ON THE DARTS BUT SAYS A SALOMON SPOKESMAN WE'RE NOT ADVISERS TO THE DARTS AND WE CAN'T TELL THEM WHAT TO DO THE DARTS ALSO ARE SALOMON'S SECONDLARGEST SHAREHOLDER WITH A 66 STAKE SECOND ONLY TO BERKSHIRE HATHAWAY'S MR LARA RESENDE SAYS HE IS SO FRUSTRATED THAT JUST SEEING THE WORD DART UPSETS HIM BUT HE HASN'T BEEN ABLE TO ESCAPE IT THE SECURITY GUARDS AT THE CENTRAL BANK OF BRAZIL WORK FOR A COMPANY WITH THE SAME NAME HE MOANS EVERY TIME I GO THERE I SEE DART' ON THEIR SHIRTS RELIEF WILL SOON BE HIS HOWEVER HE IS RESIGNING TODAY TO RETURN TO THE BRAZILIAN PRIVATE SECTOR KEN DART ON THE OTHER HAND SEES THE BATTLE OF BRAZIL THIS WAY MR RHODES AND OTHER MEMBERS OF THE BANKERS' CLUB ARE PRODDING THE FAMILY TO GO ALONG LIKE SHEEP AND ACCEPT LESS FAVORABLE TERMS THAN WHAT WAS ORIGINALLY WORKED OUT THE RESTRUCTURING DEAL IS MEANT TO END A DECADE OF TROUBLES RELATED TO BRAZIL'S GIANT FOREIGN DEBT IN 1987 BRAZIL SUSPENDED INTEREST PAYMENTS ON ITS MEDIUMTERM AND LONGTERM DEBT TO FOREIGN BANKS WHICH HELD ABOUT 67 BILLION OF ITS TOTAL FOREIGN DEBT OF 108 BILLION AT THE TIME TWO YEARS LATER AFTER FAILED RESTRUCTURING EFFORTS IT DID SO A SECOND TIME THE CURRENT DEAL IS PART OF A PROGRAM DESIGNED BY FORMER TREASURY SECRETARY NICHOLAS BRADY UNDER WHICH MANY OF THE NEW BONDS TO BE MADE FROM BRAZIL'S OLD DEBT WILL BE COLLATERALIZED BY ZEROCOUPON US TREASURY SECURITIES WITH THIS DEAL BRAZIL WOULD COMPLETE RESTRUCTURING OF WHAT REMAINS OF ITS MEDIUMTERM AND LONGTERM DEBT TO FOREIGN BANKS AND INSTITUTIONAL INVESTORS 35 BILLION IN PRINCIPAL PLUS 17 BILLION IN INTEREST ARREARS THE RESTRUCTURING WOULD REDUCE THIS DEBT BY ABOUT 25 OR 13 BILLION YESTERDAY CREDITORS OWNING 89 OF THE DEBT AGREED TO THE RESTRUCTURING PLAN WITH CHANGES BRAZIL WANTS AT A CEREMONY IN TORONTO BUT THE OUTCOME REMAINS UNCLEAR MR LARA RESENDE SAID THAT BRAZIL RESERVES THE RIGHT TO STOP THE DEAL IF THE DARTS DO NOT JOIN BUT IT IS OUR FIRM CONVICTION THAT THE DARTS WILL JOIN BRAZIL CAN ILL AFFORD TO GIVE THE DARTS SPECIAL TERMS DEBT HOLDER TRUST CO OF THE WEST IN LOS ANGELES SAYS IT WILL PULL OUT IF THE DARTS GET ANY SPECIAL DEAL THAT IT DOESN'T GET AT THE SAME TIME IF BRAZIL TRIES TO PUT THE DEAL IN EFFECT WITHOUT THE DARTS SOME THINK THEY MIGHT TRY TO BLOCK IT IN COURT IF BRAZIL LETS THE DARTS HAVE THE DEAL AS INITIALLY NEGOTIATED WITHOUT ANY CHANGES THEIR PAPER PROFIT ON THEIR HOLDINGS COULD BE SOME 360 MILLION COMPARED WITH ABOUT 270 MILLION IF THEY ACQUIESCE IN CHANGES SAY LATIN AMERICAN DEBT EXPERTS ASKED ABOUT THIS KEN DART SNAPS YOU DON'T KNOW WHAT YOU'RE TALKING ABOUT BUT IF THE RESTRUCTURING GOES THROUGH WITHOUT THE DARTS THE VALUE OF THEIR HOLDINGS COULD PLUNGE SAYS GERARD FINNERAN A PORTFOLIO MANAGER AT TRUST CO OF THE WEST AND IF THE ENTIRE RESTRUCTURING COLLAPSES ALL BETS ARE OFF IT'S A COLOSSAL GAME OF CHICKEN ONE BANKER SAYS THE DARTS' METHODS CALL TO MIND THE TACTICS OF SOCALLED VULTURE INVESTORS IN BUSINESS WHO BUY UP ENOUGH OF THE DEBT OF A FAILING COMPANY SO THEY CAN FORCE AN ESPECIALLY GOOD DEAL FOR THEMSELVES THIS STRATEGY HASN'T PREVIOUSLY BEEN TRIED BY A SINGLE INVESTOR ON SUCH A GRAND SCALE AS A SOVEREIGN NATION'S DEBT RESTRUCTURING BRAZIL MAY HAVE BEEN JUST THE FIRST OF THE DARTS' BIG SPECULATIVE FORAYS INTO THE DEVELOPINGNATION DEBT MARKETS WITH KEN DART TAKING THE LEAD THE FAMILY HAS SET UP A CAYMAN ISLANDS OFFICE TO MANAGE SUCH INVESTMENTS WHICH ARE SAID ALSO TO INCLUDE POSITIONS IN THE DEBT PAPER OF ECUADOR POLAND AND PERHAPS VENEZUELA RECENTLY BANKERS TRYING TO RESTRUCTURE ECUADOR'S DEBT DISCUSSED THE POSSIBILITY OF MAVERICKS LIKE THE DARTS INTERFERING WITH THEIR PROPOSAL SAYS CHASE MANHATTAN'S REPRESENTATIVE ON THE PANEL THE DARTS' VERY PUBLIC ROLE IN THE BRAZIL MATTER IS AT ODDS WITH THEIR WISH FOR CONFIDENTIALITY WA AND KEN DART GRANTED WHAT THEY CALLED THEIR FIRSTEVER NEWSPAPER INTERVIEW TO CORRECT MISPERCEPTIONS THAT THEY CHARGE BANKERS LEAKED TO THE PRESS THEY WON'T SPEAK ABOUT THEIR WEALTH BUT THOMAS DART IN A SEPARATE INTERVIEW PUT THE FAMILY FORTUNE AT MORE THAN 3 BILLION A FIGURE THAT WOULD RANK THEM AMONG AMERICA'S DOZEN WEALTHIEST FAMILIES THE DARTS HANG ON TO WHAT THEY HAVE WA DART IS NOT A SPENDER AND CLAIRE HIS WIFE STILL BUYS SHOES AT SEARS SAYS KATHERINE ROSS A COUSIN BARRY COHEN A BEAR STEARNS COS TRADER WHO SAYS HE HAS DONE HUNDREDS OF MILLIONS OF DOLLARS OF TRADES FOR THE DARTS SAYS KEN IS THE RICHEST GUY I KNOW WHO WEARS A TIMEX PEOPLE WHO HAVE COMPETED AGAINST THEM IN THE FOAMCUP BUSINESS DON'T ENVY THE BANKS AND BRAZILIANS THE DARTS ARE RUTHLESS IN DEALING WITH COMPETITORS SAYS DAVID BRODY CHAIRMAN OF LUCKY CONTAINER CORP IN LOS ANGELES ANYONE WHO HAS TRIED TO TAKE BUSINESS AWAY FROM BILL DART ON THE BASIS OF PRICE WON'T BE IN BUSINESS ANYMORE MR BRODY FIGURES THAT IN HIS REGION DART CONTAINER HAS CUT PRICES BY 30 IN THREE YEARS TO GET OTHER MANUFACTURERS OUT OF BUSINESS WA DART DISMISSES SUCH ACCUSATIONS BLAMING PRICE CUTTING ON OTHERS WHO CAN'T COMPETE ON QUALITY AND SERVICE DART CONTAINER HOLDS DOWN COSTS BY PRODUCING ITS OWN FEEDSTOCKS BUILDING ITS OWN CUPMAKING MACHINERY AND CONTROLLING DISTRIBUTION WITH COMPANYOWNED TRUCKS THE DARTS USE THESE LOWER COSTS TO UNDERCUT COMPETITORS AND STILL MAKE MONEY PRIVATELY HELD DART CONTAINER WHICH SHIPPED ITS FIRST CUPS IN 1960 TODAY MAKES MORE THAN HALF THE 30 BILLION POLYSTYRENE CUPS SOLD ANNUALLY IN THE US ITS STRATEGY AT LEAST IN 1984 WAS REVEALED IN A MEMO KEN WROTE THAT YEAR TO DART CONTAINER LAWYERS NOW FILED IN A SUIT TOM DART BROUGHT AGAINST HIS FATHER AND BROTHERS IN STATE COURT IN SARASOTA FLA KEN SAID HE WANTED THE COMPANY TO SIMULTANEOUSLY DROP PRICES AND MAXIMIZE EFFICIENCY SO THAT ON OCCURRENCE OF MY BEING PRESIDENT I WILL HAVE THE BEST CHANCE OF DESTROYING COMPETITION KEN'S MEMO ALSO SAID HE WANTED TOM AS FAR AWAY AS POSSIBLE FROM DART CONTAINER HE DIDN'T SAY WHY BUT FAMILY MEMBERS AGREE THAT KEN WAS GROWING RESENTFUL THAT DART CONTAINER WAS FUNDING THE DART ENERGY COMPANY WHICH TOM RAN THEN AND STILL DOES DART CONTAINER WAS FOUNDED IN MASON MICH WHERE IT IS NOW THE TOWN'S SECONDLARGEST EMPLOYER TOM HAS A SECOND SUIT AGAINST HIS RELATIVES IN STATE PROBATE COURT IN MASON BETTER TAX RATES LED WA AND KEN DART TO RELOCATE IN 1989 TO SARASOTA FLA WHERE THEY NOW OPERATE OUT OF AN UNMARKED SPARTAN OFFICE TUCKED BEHIND A SPORTINGGOODS STORE TOM DART ASSERTS IN AN INTERVIEW THAT HIS FATHER AND BROTHERS ARE PARANOID PEOPLE WHO NEED TO CONTROL EVERYTHING THE DARTS ARE SO SECURITYCONSCIOUS THEY WON'T LET THEIR OWN CUP SALESMEN ENTER COMPANY PLANTS THE ELDER DART WA SAYS WE STARTED WITH A POLICY THAT THE ONLY PEOPLE WE'D LET INTO PLANTS ARE THOSE THAT NEEDED TO BE THERE THE REASON IS TO GUARD AGAINST COPYING PROPRIETARY EQUIPMENT HE SAYS CLAYTON LYONS CHAIRMAN OF RIVAL MASTER CONTAINER CORP HAS LET DART SALESMEN TOUR HIS MULBERRY FLA CUP PLANT OVER THE YEARS IT WOULD BE ALMOST IMPOSSIBLE TO LOOK AT A MACHINE AND COPY IT HE SAYS BUT SECRECY IS AN IMPORTANT PART OF THE DART DOCTRINE THAT APPLIES TO INVESTMENTS TOO THE DARTS BECAME WALL STREET PLAYERS IN 1987 WITH TREPIDATION CONCERNED ABOUT THE SECURITIES AND EXCHANGE RULE REQUIRING DISCLOSURE OF STAKES BIGGER THAN 5 BUT IN 1991 THEY FOUND AN OPPORTUNITY THAT OUTWEIGHED THEIR DISTASTE FOR PUBLICITY THEY BOUGHT 108 OF FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC INSTITUTIONS WERE DUMPING AND IT WAS OFF EVERYONE'S BUY LIST SAYS KEN DART WHO TAKES CREDIT FOR MOST OF THE FAMILY'S INVESTMENT DECISIONS BY THE TIME THEY BEGAN SELLING THE STOCK IN MID1992 THEY HAD MORE THAN DOUBLED THEIR MONEY KEN SAW SIMILAR POTENTIAL WHEN SALOMON STOCK PLUNGED IN AUGUST 1991 AFTER THE FIRM VIOLATED TREASURY AUCTION RULES BY OCTOBER THE DARTS OWNED MORE THAN 5 OF SALOMON HAVING BOUGHT THEIR SHARES IN THE 20S AND WITH SALOMON NOW AT 4475 THEY HAVE PAPER PROFIT OF SOME 190 MILLION THE DARTS' INVESTMENT IN BRAZILIAN DEBT FITS THE PATTERN BRAZIL'S ECONOMY WAS FALTERING ITS LEADERSHIP WAS IN TURMOIL AND ITS LOAN PAPER COULD BE HAD FOR DISTRESS PRICES IN LATE 1991 KEN DART TRAVELED TO BRAZIL ACCOMPANIED BY TWO SALOMON DEBT SPECIALISTS WHERE HE MET WITH LUIS PAULO ROSENBERG A BRAZILIAN ECONOMIC ANALYST OVER LUNCH IN A SAO PAULO RESTAURANT THEY CHATTED ABOUT WHETHER BRAZIL COULD REPAY MR ROSENBERG HAS MET WITH HUNDREDS OF INVESTORS AND FORGOTTEN MOST BUT HE VIVIDLY RECALLS MR DART HE WAS PLAYING DEVIL'S ADVOCATE AND TRYING TO DESTROY MY POSITIONS THE ANALYST SAYS HE REMEMBERS MR DART SAYING HE BOUGHT SALOMON STOCK WHEN EVERYBODY THOUGHT IT WAS GOING TO GO BANKRUPT AND VIEWED BRAZILIAN DEBT SIMILARLY IN EARLY 1992 SALOMON BEGAN BUYING BRAZILIAN DEBT PAPER FOR DART CONTAINER FOR 25 TO 40 CENTS ON THE DOLLAR SAY VARIOUS TRADERS THE TRADES STUCK IN EVERYONE'S MEMORY BECAUSE THEY WERE SO BIG THAT THE MARKET THEORIZED THAT SALOMON HAD A MANDATE FROM THE CENTRAL BANK OF BRAZIL RECALLS CONOR O'DRISCOLL A TRADER AT MGEMERGING MARKETS IN NEW YORK THINGS HAD TO BE KEPT VERY QUIET SALOMON TRADERS ALREADY KEEP CLIENTS' IDENTITIES SECRET BUT ONE EXEMPLOYEE SAYS KEN DART WAS EXTREMELY SECRETIVE INSISTING ON LIMITING KNOWLEDGE OF THE BUYING TO THOSE WITH A NEED TO KNOW MR DART GREW CONCERNED THAT SALOMON MIGHT BE OVERCHARGING FOR THE DEBT ON WHICH PRICES AREN'T READILY AVAILABLE TO EASE CONCERNS SALOMON INSTALLED A QUOTATION TERMINAL IN THE DARTS' OFFICES SO THEY COULD TRACK TRADES AND PRICES THE PURCHASES WERE SO BIG THAT THE DARTS WOULD HAVE BEEN THE BIGGEST CLIENTS OF ANYBODY ON WALL STREET SAYS ONE TRADER THE FEES SALOMON DERIVED FROM MR DART'S DEVELOPINGNATION DEBT PURCHASES ARE BELIEVED TO HAVE HIT 10 MILLION OR MORE KEN DART KEPT CLOSE TABS ON THE HOLDINGS FLYING TO BRAZIL AND SPEAKING WITH MANY FINANCE OFFICIALS SOME WERE PLEASED THAT HE SAID HE WISHED BE A LONGTERM INVESTOR IN BRAZIL IT WAS EXTREMELY ENCOURAGING TO FIND SOMEONE WHO WANTED TO INVEST IN LOAN PAPER THAT MANY PEOPLE THOUGHT WAS JUNK SAYS FRANCISCO GROS A FORMER PRESIDENT OF BRAZIL'S CENTRAL BANK MR GROS NOW AN ADVISER TO MORGAN STANLEY SAYS HE AND OTHER BRAZILIAN FINANCE OFFICIALS FIGURED THE DARTS WERE GOOD GUYS AND WERE SURPRISED WHEN THEY BECAME A SOURCE OF PROBLEMS THE DIFFICULTIES BEGAN EARLY THIS YEAR BRAZIL HAD OFFERED DEBT HOLDERS IN 1992 A VARIETY OF OPTIONS FOR CONVERTING THEIR LOANS INTO DIFFERENT TYPES OF MORE VALUABLE BONDS THE DARTS CHOSE TO CONVERT THEIRS AT FACE VALUE TO SOCALLED CAPITALIZATION BONDS WHICH HAVE NO TANGIBLE COLLATERAL BUT COUPONS THAT RISE TO 8 FROM 4 OVER SIX YEARS BUT LAST SPRING BRAZIL TOLD CREDITORS THAT IT NEEDED FURTHER DEBT REDUCTION AND THAT THEY WOULD HAVE TO CONVERT AT LEAST 35 OF THEIR HOLDINGS INTO DISCOUNT BONDS THESE ARE COLLATERALIZED HAVE FLOATING INTEREST RATES AND UNLIKE THE OTHERS ARE CONVERTIBLE AT A DISCOUNT RATHER THAN FACE VALUE THEY ARE MUCH LESS ATTRACTIVE FOR INVESTORS BRAZIL HAD TOLD ALL INVESTORS IN WRITING THAT IT MIGHT DO SO NONETHELESS KEN DART CALLS BRAZIL'S DEMAND FOR CHANGES A BAITANDSWITCH HE IS DEMANDING HE BE PERMITTED TO STICK TO THE ORIGINAL DEAL AT A SEPT 30 MEETING IN THE OFFICE OF THE DARTS' NEW YORK ATTORNEY KEN DART PROTESTED VEHEMENTLY ABOUT PRESS REPORTS OF THE DARTS' BRAZILIAN HOLDINGS ACCUSING FINANCE OFFICIALS OF LEAKING THEIR NAME TO APPLY PRESSURE THE BRAZILIANS DENIED IT FIVE DAYS LATER THE DARTS DISPATCHED THEIR ATTORNEY LEE BUCCHEIT TO MEET WITH THE US BANKERS WHO NEGOTIATED THE DEAL HE NEVER CAME RIGHT OUT AND THREATENED A LAWSUIT IF THE DEAL WENT FORWARD WITHOUT THE DARTS SAYS ONE BANKER WHO ATTENDED BUT THAT WAS THE IMPLICATION MR BUCCHEIT SAYS HE DIDN'T MEAN TO IMPLY THAT WITH THE OTHER DEBTORS NOW SIGNING ON BRAZIL HASN'T BLINKED AND NEITHER HAVE THE DARTS COUSIN ROLLIN DART ISN'T SURPRISED AT THE TENACITY OUR FAMILY HAS ALWAYS BEEN HIGHLY COMPETITIVE HE SAYS THEY FIGHT TO THE DEATH KEN DART PUTS IT THIS WAY THERE MAY BE 99 PEOPLE THAT THINK ONE THING AND ONE WHO THINKS DIFFERENTLY AND IT DOESN'T MEAN THE 99 PEOPLE ARE RIGHT 9311300104 931130 INTERNATIONAL NINJA TURTLES MAKER PLANS SPINOFF NEW COMPANY HONG KONG TEENAGE MUTANT NINJA TURTLES THE BIZARRE TOY CRAZE OF THE LATE 1980S HAVE SPAWNED YET ANOTHER MUTATION A HONG KONG PROPERTY FIRM PLAYMATES INTERNATIONAL HOLDINGS LTD THE TOY COMPANY THAT HOLDS THE LUCRATIVE TURTLE LICENSE HAS BEEN PLOWING PROFIT FROM THE TINY ACTION FIGURES INTO LOCAL REAL ESTATE FOR YEARS AS TURTLE SALES DWINDLED HONG KONG'S PROPERTY MARKET BOOMED AND YESTERDAY THE COMPANY SAID IT WOULD BE SPLIT INTO TWO PARTS PLAYMATES PROPERTIES HOLDINGS LTD AND PLAYMATES TOYS HOLDINGS LTD PROVIDED PLAYMATES' SHAREHOLDERS APPROVE THE CHAN FAMILY THAT CONTROLS THE COMPANY WILL SELL BUILDINGS TO PLAYMATES INTERNATIONAL IN RETURN FOR SHARES VALUED AT 14 BILLION HONG KONG DOLLARS US1812 MILLION WHICH WILL BOOST THEIR CONTROL OF THE COMPANY TO 70 FROM ABOUT 51 THE TOY BUSINESS THEN WILL BE SPUN OFF AS PLAYMATES TOYS IN A 1FOR1 SHARE DISTRIBUTION TO PLAYMATES INTERNATIONAL HOLDERS THE TWO COMPANIES WILL HAVE SEPARATE MANAGEMENTS AND WILL NOT HOLD INTERESTS IN EACH OTHER'S SHARE CAPITAL 9311300103 931130 WHO'S NEWS PUTNAM BERKLEY NAMES PETERSEN TO NEW POSITION BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PUTNAM BERKLEY GROUP INC NAMED VETERAN PUBLISHING EXECUTIVE SUSAN J PETERSEN TO THE NEW POST OF EXECUTIVE VICE PRESIDENT AS PART OF A PLAN TO EXPAND SIGNIFICANTLY IN THE PUBLISHING INDUSTRY PUTNAM A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO IS SAID TO BE THE LEADING CONTENDER TO PURCHASE HEARST CORP'S WILLIAM MORROW BOOK PUBLISHING UNIT HEARST HIRED INVESTMENT BANK LAZARD FRERES & CO TO SELL THE DIVISION WHICH INCLUDES PUBLISHERS WILLIAM MORROW & CO AND AVON BOOKS PUTNAM DOESN'T DISCLOSE SALES BUT THEY ARE ESTIMATED IN THE INDUSTRY TO BE 260 MILLION THIS YEAR WHILE MORROW'S SALES ARE SAID TO BE 160 MILLION MS PETERSEN IS EXPECTED TO HEAD THE MORROW UNIT IF PUTNAM ACQUIRES IT BUT IN ANY EVENT WILL HAVE THE MANDATE TO SEEK OTHER ACQUISITIONS AND ESTABLISH HER OWN HARDCOVER AND TRADE PAPERBACK PUBLISHING HOUSE UNDER THE PUTNAM UMBRELLA MS PETERSEN 48 YEARS OLD WILL REPORT TO PHYLLIS E GRANN 56 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PUTNAM AND IS ALSO SEEN AS A POTENTIAL SUCCESSOR TO MS GRANN FROM 1982 TO 1992 MS PETERSEN WAS EXECUTIVE VICE PRESIDENT OF RANDOM HOUSE INC AND PRESIDENT OF ITS LARGEST DIVISION BALLANTINE/DEL RAY/FAWCETT/IVY BOOKS MS PETERSEN HANDLED THE ACQUISITION OF FAWCETT BOOKS AND STARTED OTHER BUSINESSES AND HER DIVISION WAS A PROFITABLE ONE FOR RANDOM A UNIT OF ADVANCE PUBLICATIONS INC MS PETERSEN RESIGNED FROM RANDOM HOUSE LAST YEAR RANDOM'S CHIEF EXECUTIVE ALBERTO VITALE NAMED AS HER SUCCESSOR AN EXECUTIVE WHO HAD WORKED FOR HIM WHEN HE WAS CHIEF EXECUTIVE OF BERTELSMANN AG'S BANTAM DOUBLEDAY UNIT AT THE TIME MS PETERSEN SAID IT IS TIME FOR ME TO EXPLORE AND DEVELOP NEW OPPORTUNITIES IN THE RAPIDLY CHANGING ENVIRONMENT OF BOOK PUBLISHING MS PETERSEN SAID SHE HAS TRAVELED EXTENSIVELY SINCE LEAVING RANDOM BUT KEPT IN CLOSE TOUCH WITH MS GRANN SHE DECIDED TO JOIN PUTNAM BECAUSE PHYLLIS IS EAGER TO GROW THE COMPANY AND IT IS A WONDERFUL HOUSE FOR GETTING BOOKS OUT THERE PUTNAM'S AUTHORS INCLUDE TOM CLANCY DICK FRANCIS AND AMY TAN MS GRANN HAS SAID SHE BELIEVES THE COMPANY NEEDS TO GROW SIGNIFICANTLY IF IT IS TO REMAIN COMPETITIVE AMONG LARGE PUBLISHERS IN THE FUTURE 9311300102 931130 CHRYSLER TO ACCUMULATE A CUSHION OF 75 BILLION DETROIT CHRYSLER CORP PLANS TO ACCUMULATE 75 BILLION IN CASH TO CUSHION THE AUTO MAKER THROUGH THE NEXT NATIONAL ECONOMIC DOWNTURN SAID ROBERT J EATON CHRYSLER'S CHAIRMAN A YEAR AGO MR EATON SAID CHRYSLER INTENDED TO ACCUMULATE 5 BILLION IN CASH BEFORE THE NEXT DOWNTURN BUT STRONG PROFITS AND A FOCUS ON IMPROVING THE BALANCE SHEET HAVE PROMPTED CHRYSLER TO INCREASE THAT GOAL IN ADDITION TO ACCUMULATING 75 BILLION CHRYSLER PLANS TO CONTINUE TO PAY DOWN ITS UNFUNDED PENSION LIABILITY WHICH STANDS AT 136 BILLION ACCORDING TO THE PENSION BENEFIT GUARANTY CORP MR EATON SPOKE WITH REPORTERS AFTER AUTOMOBILE MAGAZINE NAMED CHRYSLER'S NEON SMALL CAR ITS AUTOMOBILE OF THE YEAR THE AWARD IS ANOTHER BOOST FOR THE NEON WHICH CHRYSLER WILL BEGIN SELLING AFTER THE FIRST OF THE YEAR THE CAR HAS BEEN HAILED AS POTENTIALLY THE FIRST USMADE SMALL CAR TO BE PROFITABLE AND TO THREATEN SALES OF JAPANESE AUTO COMPACTS IN THE US THE CAR WILL SELL FOR 9000 TO 12800 AND COMPETE AGAINST COMPACTS INCLUDING SATURN AND HONDA CIVIC SEDANS 9311300101 931130 COURT TO HEAR PARAMOUNT VIACOM APPEALS FOR MERGER WILMINGTON DEL THE DELAWARE SUPREME COURT FORMALLY AGREED TO HEAR APPEALS BY PARAMOUNT COMMUNICATIONS INC AND VIACOM INC OF LAST WEEK'S LOWER COURT RULING BLOCKING THEIR PROPOSED 95 BILLION MERGER AS EXPECTED THE COURT ACCEPTED THE CASE AFTER VIACOM AND RIVAL BIDDER QVC NETWORK INC AGREED TO FREEZE THEIR BIDS DURING THE APPEAL WHICH IS TO BE HEARD IN OPEN COURT ON DEC 9 THE HEARING IS EXPECTED TO BE TELEVISED DELAWARE CHANCERY COURT JUDGE JACK JACOBS LAST WEDNESDAY GRANTED A REQUEST BY QVC TO BLOCK VIACOM'S PLANNED ACQUISITION OF PARAMOUNT QVC CHAIRMAN BARRY DILLER HAS MADE A HIGHER 105 BILLION OFFER FOR PARAMOUNT THAT HAS BEEN REBUFFED BY PARAMOUNT JUDGE JACOBS RULED THE PARAMOUNT BOARD SHOULD HAVE SOUGHT MORE INFORMATION ABOUT THE QVC BID BEFORE REFUSING TO CONSIDER IT 9311300100 931130 TECHNOLOGY & HEALTH SEVERAL TAIWAN FIRMS SIGN PACT TO SUPPORT MOTOROLA'S POWERPC SCHAUMBURG ILL MOTOROLA INC SAID IT SIGNED UP SEVERAL TAIWANESE COMPUTER COMPANIES TO JOIN IT AND INTERNATIONAL BUSINESS MACHINES CORP IN DEVELOPING AND PROMOTING COMPONENTS FOR COMPUTERS BASED ON THE POWERPC CHIP SEPARATELY THE MAKER OF SEMICONDUCTORS AND COMMUNICATIONS EQUIPMENT SAID IT SIGNED A PACT WITH CENTRUM COMMUNICATIONS TO USE CENTRUM TECHNOLOGY IN ITS LINE OF MOBILE OFFICE PRODUCTS THE TAIWAN NEW PC CONSORTIUM WAS FORMED TO BROADEN ALLEGIANCE TO THE POWERPC MICROPROCESSOR JOINTLY DEVELOPED BY MOTOROLA IBM AND APPLE COMPUTER INC TO COMPETE AGAINST INTEL CORP'S PENTIUM CHIP AS THE FOUNDATION FOR THE NEXT GENERATION OF PERSONAL COMPUTERS YET TO BE DECIDED A MOTOROLA SPOKESMAN SAID IS WHETHER THE TAIWANESE FIRMS WILL BE MAKING JUST SPECIALIZED POWERPC COMPONENTS OR ENTIRE COMPUTER SYSTEMS BASED ON THE NEW MICROPROCESSOR DESIGN MEMBERS OF THE CONSORTIUM INCLUDE TATUNG CO MITAC DTK UMAX AND TAIWAN AUTO DESIGN MOTOROLA SAID MEANWHILE UNDER THE CENTRUM PACT MOTOROLA SAID IT WILL USE CENTRUM'S TECHNOLOGY FOR REMOTE ACCESS TO NETWORKS IN ITS UDS PRODUCT LINE TO OFFER MORE COMPLETE COMMUNICATIONS SERVICES MOTOROLA DIDN'T DISCLOSE TERMS OF THE PACT WITH CENTRUM A CLOSELY HELD COMPUTERNETWORK COMPANY IN SAN JOSE CALIF 9311300097 931130 WHO'S NEWS MINNESOTA MINING & MANUFACTURING CO MINNESOTA MINING & MANUFACTURING CO ST PAUL MINN ROBERT J HERSHOCK 59 YEARS OLD GROUP VICE PRESIDENT ABRASIVE TECHNOLOGIES WAS NAMED VICE PRESIDENT MARKETING OF THIS MAKER OF ABRASIVES ADHESIVES CHEMICALS AND OTHER CONSUMER AND MEDICAL PRODUCTS EFFECTIVE JAN 1 9311300095 931130 POLITICS & POLICY MICHIGAN'S SCHOOLAID CRISIS OFFERS CRASH COURSE IN CONVERGENCE OF TAX AND EDUCATION REVOLTS BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL LANSING MICH AMONG THE MANY DISPUTES IN MICHIGAN ABOUT THE STATE'S BIZARRE FISCAL SITUATION IS AN ARGUMENT OVER HOW TO BEST DESCRIBE IT JUMPING FROM A PLANE WITH NO PARACHUTE OR FLIPPING FROM THE HIGH DIVE AND THEN CHECKING WHETHER THERE'S WATER IN THE POOL EITHER WAY MICHIGANDERS MAY SOON BE IN FOR A HARD LANDING GOV JOHN ENGLER A CONSERVATIVE REPUBLICAN DREW CHEERS FROM VOTERS IN AUGUST WHEN HE SIGNED A BILL THAT ABOLISHED LOCAL PROPERTY TAXES AS A MEANS OF FUNDING PUBLIC SCHOOLS BUT NOW HE IS WORKING FURIOUSLY WITH THE STATE LEGISLATURE TO STITCH TOGETHER A POTPOURRI OF LEVIES INCLUDING A SALESTAX INCREASE THAT WOULD REQUIRE VOTER APPROVAL TO MAKE UP A 6 BILLION REVENUE SHORTAGE THE STATE'S PUBLIC SCHOOLS MEANWHILE ARE WITHOUT 68 OF THEIR FUNDING FOR THE COMING FISCAL YEAR THE BUDGET FOR WHICH IS DUE NEXT MONTH PEOPLE DON'T REALIZE THAT THE MONEY HAS GOT TO COME FROM SOMEWHERE OR ELSE THE BUSES REALLY WON'T RUN NEXT SEPTEMBER THIS IS NOT A GAME SAYS REP WILLIS BULLARD A REPUBLICAN COCHAIRMAN OF THE HOUSE TAXATION COMMITTEE AS HE SQUEEZES A RUBBER BALL A STAFFER GAVE HIM TO RELIEVE STRESS PEOPLE ARE SO ANGRY OUT THERE THAT THE BLAZE IS NOW RAGING OUT OF CONTROL IT'S ENGULFING US CONVERGING IN MICHIGAN ARE TWO OF TODAY'S MOST EXPLOSIVE POPULIST REVOLTS OPPOSITION TO PROPERTY TAXES AND OUTRAGE OVER THE PERFORMANCE OF PUBLIC SCHOOLS VOTERS NATIONWIDE WHO HAVE BEEN CRYING OUT TO REINVENT GOVERNMENT TO THROW OUT THE OLD WAYS AND START CLEAN WOULD BE WELL SERVED TO COME HERE AND WATCH THE FREE FALL THAT HAS RESULTED SINCE 1989 COURTS IN EIGHT STATES HAVE RULED THAT UNCONSTITUTIONAL INEQUALITY EXISTS IN PUBLICSCHOOL FUNDING BETWEEN WEALTHY AREAS WITH STRONG PROPERTY VALUES AND LESS FORTUNATE NEIGHBORING COMMUNITIES WHERE RESIDENTS OFTEN SPEND LARGER PORTIONS OF THEIR INCOMES TO SUPPORT INFERIOR PUBLIC SERVICES BUT SUCH STATECOURT RULINGS AND SIMILAR SUITS PENDING IN 25 OTHER STATES HAVE HAD LITTLE EFFECT AS MOST LEGISLATURES HAVE BEEN UNABLE OR UNWILLING TO CONJURE A REPLACEMENT FOR THE RAISE IT LOCALLY SPEND IT LOCALLY SYSTEM OF PROPERTYBASED TAXATION LOCAL PROPERTY TAXES WHICH HAVE BEEN PAYING FOR SCHOOLS IN THE US SINCE THE 1820S STILL CONTRIBUTE NEARLY 46 OF THE FUNDING FOR PUBLIC EDUCATION WITH STATE COFFERS OFFERING ANOTHER 48 AND THE FEDERAL GOVERNMENT CONTRIBUTING 6 IT WAS ONLY THROUGH SOME MISSTEPS THAT MICHIGAN JUMPED OUT IN FRONT OF THE PROPERTYTAX DEBATE GOV ENGLER WHO VOWED IN HIS 1990 ELECTION VICTORY TO SLASH PROPERTY TAXES BY 20 WAS TRYING TO ENACT SUCH A CUT LATE ONE NIGHT LAST SUMMER WHEN DEMOCRATIC LEGISLATORS RESPONDED WITH A DANGEROUS GAME OF POLITICAL DOUBLEDARE ABOLISH PROPERTY TAXES ALTOGETHER FOR SCHOOL FUNDING BUT WHAT MAKES MICHIGAN TRULY FASCINATING SAYS MS FULTON IS WHAT HAPPENED NEXT ONCE THEY STUMBLED INTO THIS PROPERTYTAX CRISIS THEY STOOD UP AND REALIZED HEY THIS IS A REAL OPPORTUNITY TO REINVENT THE WAY WE FUND OUR SCHOOLS' THEY COULD NOW OVERHAUL THE WHOLE EDUCATIONAL SYSTEM SHE SAYS OVER THE PAST TWO MONTHS GOV ENGLER HAS HEIGHTENED ATTACKS ON WHAT HE CALLS THE WASTEFUL INEFFICIENT EDUCATIONAL MONOPOLY AND BECOME A DARLING OF THOSE WHO WANT TO RADICALLY REFORM THE US EDUCATIONAL SYSTEM HIS PROPOSAL WOULD SHIFT THE FUNDING OF SCHOOLS FROM LOCAL PROPERTY TAXES TO STATEWIDE LEVIES SO HIS ADMINISTRATION WOULD IN HIS WORDS CONTROL THE MONEY AND USE IT TO SMASH THE SCHOOL BUREAUCRACY FINALLY FORCING A SOLUTION TO OUR FAILED PUBLICEDUCATION SYSTEM THE GOVERNOR'S PLAN WOULD BOOST PERPUPIL SPENDING IN MICHIGAN'S POOREST MOSTLY RURAL DISTRICTS TO 4500 JUST BELOW THE STATE AVERAGE FROM AS LITTLE AS 3000 HE'D ALSO LAUNCH THE NATION'S MOST AMBITIOUS CHARTER SCHOOL PROGRAM WHEREBY UNIVERSITIES MUSEUMS CIVIC GROUPS RENEGADE TEACHER GROUPS AND EVEN INSTRUCTORS WITHOUT STATE TEACHING CERTIFICATION COULD START SCHOOLS AND RECEIVE THE SAME PERPUPIL FUNDING FROM THE STATE AS TRADITIONAL PUBLIC SCHOOLS MOREOVER CHARTER SCHOOLS WOULD REPORT DIRECTLY TO THE STATE'S EDUCATION COMMISSIONER BYPASSING CONTROL OF LOCAL SUPERINTENDENTS AND SCHOOL BOARDS THE GOVERNOR'S PROPOSAL HAS PASSED IN THE STATE SENATE WHERE FORMER BUSH EDUCATION SECRETARY AND SCHOOLCHOICE ADVOCATE LAMAR ALEXANDER MET WITH LEGISLATORS LAST MONTH OTHER SCHOOLCHOICE HEAVYWEIGHTS INCLUDING WILLIAM BENNETT ARE EXPECTED TO ARRIVE IN MICHIGAN SOON MEANWHILE THE POWERFUL TEACHERS LOBBY IS MASSING FOR BATTLE ENGLER HAS LOST SIGHT OF THE KIDS AND WHAT'S BEST FOR THEM SAYS JULIUS MADDOX PRESIDENT OF THE MICHIGAN EDUCATION ASSOCIATION HIS IDEAS FOR CHARTER SCHOOLS ARE A CHARADE WHICH WILL LEAVE BEHIND POOR AND INNERCITY KIDS DISABLED STUDENTS THE REAL HARD CASES WHO'LL WANT TO START A CHARTER SCHOOL FOR THEM TEACHERS WON AN IMPRESSIVE VICTORY IN CALIFORNIA EARLIER THIS MONTH WHEN THEY DEFEATED A BALLOT INITIATIVE THAT WOULD HAVE PROVIDED VOUCHERS TO STUDENTS ATTENDING PRIVATE AND RELIGIOUS SCHOOLS BUT THE MICHIGAN PROPOSAL IS A MORE DIFFICULT TARGET THEY WENT TOO FAR IN CALIFORNIA WE WON'T MAKE THE SAME MISTAKE HERE SAYS GOV ENGLER OURS WOULD BE NONRELIGIOUS AND WE'D HAVE QUALITY CONTROL OVER CHARTER SCHOOLS EACH OF WHICH WOULD HAVE TO BE APPROVED BY THE STATE BEFORE THEY'D GET ANY STATE MONEY AT A MIDNOVEMBER FORUM IN TRAVERSE CITY A SCENIC TOWN ON THE SHORE OF LAKE MICHIGAN MR MADDOX TOLD 100 OR SO RESIDENTS THAT WE CAN'T ALLOW A QUICK FIX THAT WILL LEAVE OUR EDUCATION SYSTEM IN SHAMBLES AFTERWARD THOUGH VISITORS FROM NEARBY KALKASKA WHOSE SCHOOLS CLOSED 10 WEEKS EARLY LAST SPRING AFTER A PROPERTYTAX INCREASE WAS VOTED DOWN SAID THE REAL ISSUE GOES DEEPER THE PROPERTYTAX REVOLT AND THE SCHOOL BATTLE ARE PART OF THE SAME BASIC ISSUE THAT PEOPLE HAVE LOST FAITH IN THE ABILITY OF THE PUBLIC SECTOR TO DO ITS JOB SAYS GREG CROTTCHIK A KALKASKA TEACHER WHO WENT WITHOUT PAY WHILE THE SCHOOLS WERE CLOSED I DON'T KNOW HOW WE RESTORE THAT BUT IT'S A PRECIOUS THING AND IT'S BEEN LOST MEANWHILE MICHIGAN IS LEARNING A LESSON THAT OTHER STATES MIGHT FIND INSTRUCTIVE PEOPLE MAY DESPISE PROPERTY TAXES BUT THEY DON'T LIKE OTHER TAXES MUCH BETTER MICHIGAN'S PLAN TO RELY ON A STATE SALESTAX BOOST A PROPOSAL THAT WILL PROBABLY BE PUT TO A REFERENDUM NEXT SPRING IS GIVEN ONLY EVEN ODDS OF PASSING PEOPLE ARE FEELING SO ANGRY OUT THERE SAYS DEMOCRATIC REP JIM AGEE THAT SELLING TAXES EVEN ONE THAT MIGHT MAKE THINGS MORE EQUITABLE IS A MISERABLE ALMOST IMPOSSIBLE JOB MONTANA COURT RULES AGAINST FUNDING SYSTEM IN 1989 LEGISLATURE PASSES NEW SYSTEM WHICH IS CHALLENGED IN LAWSUITS AND RECAST IN 1993 KENTUCKY COURT RULES FUNDING AND EDUCATIONAL SYSTEM UNCONSTITUTIONAL IN 1989 LEGISLATURE REFORMS FUNDING RAISING SALES TAX TO INFUSE MONEY INTO POOR DISTRICTS TEXAS COURT RULES AGAINST FUNDING IN 1989 LEGISLATURE MAKES FOURTH ATTEMPT TO MEET COURT MANDATE IN 1993 A PLAN ALREADY CHALLENGED IN LAWSUITS NEW JERSEY COURT FINDS SCHOOL FUNDING SYSTEM UNCONSTITUTIONAL IN 1990 LEGISLATIVE REMEDY INADEQUATE GOVERNOR'S COMMISSION NOW EXAMINING ALTERNATIVES MASSACHUSETTS COURT RULES AGAINST FUNDING SYSTEM IN 1993 AND LEGISLATURE PASSES EDUCATIONAL REFORM PACKAGE COURT HAS YET TO RULE IF IT IS ACCEPTABLE TENNESSEE COURT RULES AGAINST FUNDING SYSTEM IN 1993 AND LEGISLATURE PASSES EDUCATIONAL REFORM PACKAGE COURT HAS YET TO RULE IF IT IS ACCEPTABLE ALABAMA LOWER COURT RULES IN 1993 THAT ENTIRE EDUCATIONAL SYSTEM IS INEQUITABLE AND INADEQUATE AND NO APPEALS ARE FILED LEGISLATURE MANDATED TO REVAMP ENTIRE SYSTEM NORTH DAKOTA LOWERCOURT RULING IN 1993 THAT SCHOOL FUNDING SYSTEM IS UNCONSTITUTIONAL IS NOW BEFORE STATE SUPREME COURT DECISION PENDING 9311300092 931130 WHO'S NEWS CHRISTIE'S SHAKING UP US UNIT NAMES FINANCE OFFICIAL TYLER AS ITS PRESIDENT BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHRISTIE'S INTERNATIONAL PLC THE BIG LONDON ARTAUCTION HOUSE SHOOK UP THE TOP LEVELS OF ITS US OPERATIONS IN MOVES THAT WILL HELP POSITION THE FIRM TO ATTRACT MORE US INSTITUTIONAL INVESTORS THE FIRM'S TOP FINANCE OFFICIAL DAVID TYLER IS MOVING TO NEW YORK TO BECOME PRESIDENT OF CHRISTIE MANSON & WOODS INTERNATIONAL THE USBASED UNIT THAT OVERSEES ITS ARTAUCTION BUSINESS IN NORTH AND SOUTH AMERICA THE UNIT'S CURRENT PRESIDENT PROMINENT AUCTIONEER CHRISTOPHER BURGE WILL TAKE OVER AS CHAIRMAN EFFECTIVE JAN 1 STEPHEN LASH AN EXECUTIVE VICE PRESIDENT WHO'S WELLCONNECTED TO THE ESTATE ATTORNEYS WHO CONSIGN MUCH OF THE PRICEY PROPERTY THAT CHRISTIE'S SELLS WAS NAMED VICE CHAIRMAN THE UNIT'S CURRENT CHAIRMAN DANIEL P DAVISON 68 YEARS OLD WILL RETIRE AT YEAR END MR TYLER 40 IN A TELEPHONE INTERVIEW FROM HIS LONDON OFFICE STRESSED THAT HIS RELOCATION DOESN'T PRESAGE A ROUND OF PARENTIMPOSED COSTCUTTING AT CHRISTIE'S US OPERATIONS WHILE HIS AIM WILL BE TO RUN AN EFFICIENT BUSINESS HE SAID THAT WE LOOK TO BE EXPANDING OPERATIONS IN NORTH AND SOUTH AMERICA OUR ACTIVITIES IN THE AMERICAN INVESTOR AND WALL STREET COMMUNITIES WILL CONTINUE TO EXPAND MR TYLER SAID MOREOVER HE SAID THERE'S INCREASING DEMAND FOR OUR FINANCIAL SERVICES LOANS USING ART AS COLLATERAL HE ADDED THAT THE PERSONNEL MOVES WILL FREE CHRISTOPHER BURGE UP FOR HIS ROLE AS AMBASSADOR FOR CHRISTIE'S IN THE US MR BURGE 46 IS CHRISTIE'S MOST HIGHPROFILE EMPLOYEE IN AMERICA AN OFTSEEN FIGURE AT CHARITY AUCTIONS AND ON SPEAKERS' PANELS AT THE METROPOLITAN MUSEUM OF ART AND ELSEWHERE MR BURGE HAS WORKED AT CHRISTIE'S FOR HALF HIS LIFE HAVING JOINED IN 1970 AS AN EXPERT ON IMPRESSIONIST AND MODERN ART MR BURGE WAS THE AUCTIONEER IN MAY 1990 WHEN THE MOST EXPENSIVE PAINTING EVER SOLD WENT UP FOR BID VINCENT VAN GOGH'S PORTRAIT OF DR GACHET WHICH FETCHED 825 MILLION PART PAINTINGS EXPERT AND PART DROLL BRITISH STANDUP COMIC MR BURGE IS KNOWN FOR HIS GENIAL JOSHING OF BIDDERS MADAM ARE YOU BIDDING OR JUST WAVING AND FOR HIS WILLINGNESS UNCHARACTERISTIC IN THE ART WORLD TO ADMIT WHEN A SALE OR MARKET IS TROUBLED NONETHELESS MR TYLER'S PROMOTION WAS A BIT OF A SLIGHT TO THE US DIVISION IN THAT HE IS BEING IMPORTED FROM THE HOME OFFICE CHRISTIE'S OTHER TOP US OFFICIALS MR BURGE AND SENIOR DIRECTOR MICHAEL FINDLAY KNOWN FOR THEIR ART EXPERTISE AND MR LASH WHO'S CHIEFLY A BUSINESSGETTER AREN'T THE HARDCORE FINANCIAL TYPES NORMALLY PARADED BEFORE WALL STREET ANALYSTS AND INSTITUTIONAL INVESTORS MR TYLER WHO KEEPS A POSTER OF THE RECORD VAN GOGH PAINTING IN HIS OFFICE PREVIOUSLY SERVED AS GROUP FINANCE DIRECTOR FOR CHRISTIE'S HEADQUARTERS BALANCING BOOKS FOR THE FIRM AND OVERSEEING ITS RECENT EXPANSION INTO REAL ESTATE ASIAN MARKETS AND THE PURCHASE OF AN ART DEALERSHIP HE'S THE FIRM'S POINT MAN WITH POTENTIAL AND CURRENT INSTITUTIONAL INVESTORS DURING HIS TENURE CHRISTIE'S BECAME MORE AGGRESSIVE FINANCIALLY MAKING LOANS AGAINST ART AND SOMETIMES OFFERING SELLERS A GUARANTEED TAKEHOME PRICE IF THEY WOULD CONSIGN THEIR ART MR TYLER PREVIOUSLY WORKED IN FINANCE AT UNILEVER PLC AND NATIONAL WESTMINSTER BANK HE JOINED CHRISTIE'S AT THE HEIGHT OF THE ART BOOM IN MID1989 AND WAS AT THE HELM OF THE BALANCE SHEET THROUGHOUT THE CRIPPLING ARTMARKET RECESSION AND SUBSEQUENT CUTBACKS AT THE 227YEAROLD FIRM CHRISTIE'S UNTIL RECENTLY HAD FEW US INVESTORS WITH SIZABLE STAKES IN THE FIRM IN JULY GOLDMAN SACHS & CO PURCHASED 119 MILLION SHARES OF CHRISTIE'S A 75 STAKE FROM SWEDEN'S INVESTOR AB AND SAID IT EXPECTS TO SELL THE SHARES TO INSTITUTIONAL INVESTORS IN THE ORDINARY COURSE OF BUSINESS THE STOCK PRICE OF THE LONDON AUCTIONEER HAS RISEN 40 SO FAR THIS YEAR CHRISTIE'S SHARES WERE TRADING AT 149 224 IN EARLY JANUARY BUT IN LATE TRADING ON THE LONDON STOCK EXCHANGE YESTERDAY THEY STOOD AT 210 9311300091 931130 OLDSMOBILE LINE UNVEILS STRATEGY FOR A COMEBACK THE GM DIVISION WILL RELY ON AURORA CAR BRAVADA SATURN UNIT IS MODEL BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL ROMULUS MICH OLDSMOBILE THE GENERAL MOTORS CORP DIVISION THAT MANY WERE GIVING UP FOR DEAD JUST A YEAR AGO UNVEILED AN AMBITIOUS COMEBACK STRATEGY THAT COULD SET THE TONE FOR OTHER GM UNITS THE MAKEOVER REVOLVES AROUND A NEW LUXURY SEDAN TO BE INTRODUCED NEXT YEAR THE AURORA OLDSMOBILE YESTERDAY ANNOUNCED THAT THE SLEEK LOWSLUNG FOURDOOR CAR WILL BE PRICED AT 31995 INCLUDING A FULL LOAD OF LUXURY EQUIPMENT OLDS SAID IT WILL OFFER ONLY SIX OPTIONS WHICH COULD ADD AS MUCH AS 2624 TO THE PRICE AT THAT PRICE THE AURORA WILL UNDERCUT MOST OF ITS JAPANESE COMPETITION SUCH AS ACURA LEXUS AND INFINITI AND WILL CONTINUE THE OLDSMOBILE STRATEGY OF OFFERING CARS LOADED WITH OPTIONS FOR A VALUE PRICE MOREOVER OLDS OFFICIALS MADE CLEAR THAT THE AURORA INTRODUCTION WILL MARK THE FIRST PHASE IN A FARREACHING PLAN TO SHRINK AND REMAKE ITS RETAIL NETWORK IN THE IMAGE OF SATURN THE SISTER GM DIVISION THAT HAS SCORED HIGH MARKS WITH CONSUMERS IN ADDITION OLDS DISCLOSED THAT IT WILL RESURRECT ITS ENTRY IN THE LUXURY SPORTUTILITYVEHICLE MARKET THE BRAVADA IN 1995 THE DIVISION'S CURRENT NOTSOCOMPETITIVE VERSION OF THE BRAVADA WON'T BE BUILT AFTER FEBRUARY OLDS SAID THE NEW BRAVADA WILL BE AN UPSCALE VERSION OF THE CHEVROLET SBLAZER AND GMC JIMMY SPORTUTILITY VEHICLES WHICH WILL BE INTRODUCED NEXT YEAR THEY HAVE A TOUGH ROW TO HOE THEY ARE GOING UP AGAINST A LOT OF VERY GOOD PRODUCTS SAID WILLIAM R POCHILUK PRESIDENT OF AUTOFACTS INC AN INDUSTRY CONSULTING CONCERN BUT DON'T DISCOUNT THEM WHAT'S DIFFERENT ABOUT THIS COMEBACK IS THAT THERE ARE ABSOLUTELY NO SMOKE AND MIRRORS THEY ARE DOING IT WITH REAL PRODUCT IF THEY GET IT RIGHT THEY COULD BECOME A SYMBOL FOR OTHER GM DIVISIONS A YEAR AGO NOBODY WOULD HAVE SUGGESTED THAT AFTER ROUTINELY SELLING MORE THAN ONE MILLION CARS A YEAR IN THE LATE 1970S AND EARLY 1980S OLDSMOBILE MANAGED ONLY 389173 SALES LAST YEAR SPURRING RUMORS THAT IN ITS RECOVERY DRIVE GM MIGHT JUST KILL THE DIVISION THINGS WERE SO BAD THAT JOHN D ROCK THE OLDS GENERAL MANAGER FLOATED THE IDEA OF SELLING CARS WITHOUT THE OLDSMOBILE NAME AS HE DISCUSSED THE AURORA THE BRAVADA AND HIS COMEBACK STRATEGY MR ROCK DIDN'T MENTION THAT IDEA ANY MORE THINGS ARE CONSIDERABLY BETTER NOW THAN THEY WERE A YEAR AGO HE SAID IN THE FIRST TWOTHIRDS OF NOVEMBER OLDS SALES WERE UP ABOUT 28 FROM A YEAR EARLIER AT THE SAME TIME MR ROCK ACKNOWLEDGED THAT HIS MAKEOVER PROGRAM WILL TAKE UNTIL 1997 OR 1998 THE AURORA IS IMPORTANT BECAUSE IT IS LAUNCHING A MASSIVE PRODUCT RENEWAL AND COULD BE THE CATALYST TO CHANGING OLDSMOBILE'S IMAGE SAID CHRISTOPHER CEDERGREN ANOTHER INDUSTRY CONSULTANT AFTER THE AURORA AND THE BRAVADA MR CEDERGREN EXPECTS OLDS TO INTRODUCE A NEW SILHOUETTE MINIVAN IN 1996 AND IN 1997 NEW CUTLASS SUPREME AND ACHIEVA MODELS AND A SMALLER AURORA DERIVATIVE OLDS OFFICIALS MAINTAIN THAT THE AURORA WILL BE A WORTHY COMPETITOR TO SUCH LUXURYMARKET STANDARDSETTERS AS THE ACURA LEGEND THE INFINITI J30 AND THE LEXUS ES300 AND GS300 MOST OF WHICH ARE PRICED BETWEEN 33800 AND 40700 AUTOMOTIVE JOURNALISTS WHO HAVE TESTED THE AURORA HAVE WRITTEN FAVORABLY ABOUT IT MR ROCK SAID HE EXPECTS OLDS DEALERS TO SELL THE AURORA FOR THE ASKING PRICE RATHER THAN RESORTING TO THE AGEOLD INDUSTRY PRACTICE OF SHARPLY UNDERCUTTING THE MANUFACTURER'S SUGGESTED PRICE HE SAID THE 31995 PRICETAG INCLUDES A DEALER MARKUP OF ABOUT 11 FAR NARROWER THAN THE 14 OR SO THAT HAS BEEN STANDARD IN THE UPSCALE SEGMENTS IN THE PAST OLDS EXPECTS TO SELL 20000 TO 24000 IN 1994 PRODUCTION IS TO START IN FEBRUARY AS PART OF ITS DEALERMAKEOVER PROGRAM OLDS IS LIMITING WHICH OF ITS ROUGHLY 3000 DEALERS CAN SELL THE AURORA THEY HAVE TO QUALIFY BY POSTING HIGH CONSUMERSATISFACTION SCORES BY PARTICIPATING IN SPECIAL DEALER AND SALESMAN TRAINING AND BY INVESTING IN SPECIAL TOOLS PARTS AND DISPLAY GEAR THE WHOLE PACKAGE COMES TO 11000 TO 14000 A DEALER OLDS OFFICIALS SAID MR ROCK SAID HE EXPECTS NEARLY ALL OLDS DEALERS TO QUALIFY BY THE TIME THE CAR GOES ON SALE NEXT YEAR HE OBSERVED THAT THE AURORA PROGRAM IS THE FIRST STEP IN A PROGRAM TO CHANGE THE CULTURE OF THE OLDS RETAIL NETWORK AND FOCUS IT ON CUSTOMER SATISFACTION AT THE SAME TIME HE ACKNOWLEDGED THAT OLDS HOPES TO CONSOLIDATE MORE OF ITS OUTLETS IN EACH METROPOLITAN AREA IN FEWER DEALERS' HANDS TRIMMING ITS 550 METRO DEALERS BY 60 TO 100 WITHOUT REDUCING THE NUMBER OF LOCATIONS OLDSMOBILE HAD EXPLORED OFFERING A VERSION OF THE ISUZU TROOPER IN THE LUCRATIVE AND HOTLY COMPETITIVE LUXURY SPORTUTILITYVEHICLE MARKET BUT DROPPED THE IDEA WHEN THE STRONG YEN MADE THE JAPANESE PRODUCT TOO EXPENSIVE MR ROCK SAID GM'S STRATEGY BOARD CLEARED AN OLDS VERSION OF THE SBLAZER/JIMMY JUST LAST WEEK 9311300090 931130 INTERNATIONAL NORTHERN IRELAND MAY BE AT A CROSSROADS UK TALKS WITH THE IRA STIR PROTESTANT OUTRAGE YET MAY BE STEP TO PEACE BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL BELFAST NORTHERN IRELAND IN THE DECADESLONG HISTORY OF WHAT IS KNOWN HERE AS THE TROUBLES THE PRESENT MOMENT STANDS OUT NOT BECAUSE OF THE BOMBS AND BULLETS THAT HAVE KILLED DOZENS IN RECENT WEEKS BUT BECAUSE THERE IS TALK OF PEACE NEVER MIND THAT TALKS DISCLOSED AMID CONTROVERSY OVER THE WEEKEND BETWEEN THE OUTLAWED IRISH REPUBLICAN ARMY AND THE GOVERNMENT OF BRITISH PRIME MINISTER JOHN MAJOR HAVE ALIENATED THE THIRD PARTY INVOLVED BELFAST PROTESTANTS AND NEVER MIND THAT NEITHER BELFAST CAMP WILL BE REPRESENTED AT A SUMMIT OVER NORTHERN IRELAND SCHEDULED THIS FRIDAY BETWEEN MR MAJOR AND THE REPUBLIC OF IRELAND'S PRIME MINISTER ALBERT REYNOLDS IN A CONFLICT ESSENTIALLY DISMISSED YEARS AGO AS IRRESOLVABLE TALK OF ANY SORT IS VIEWED AS REMARKABLE IT MEANS THAT IT'S NOT HOPELESS SAYS JOHN ALDERDICE A PSYCHIATRIST AND LEADER OF NORTHERN IRELAND'S TINY ALLIANCE PARTY MADE UP OF COMPROMISEMINDED CATHOLICS AND PROTESTANTS HE ADDS THAT AS THE PALESTINIANS AND ISRAELIS RECENTLY PROVED ONCE YOU DECIDE TO SEEK PEACE IT CAN HAPPEN QUITE QUICKLY TO BE SURE NO ONE VIEWS A MIDEASTSTYLE BREAKTHROUGH AS POSSIBLE ANYTIME SOON DISTRUST HERE RUNS DEEPER THAN THE BRICK WALLS AND IRON FENCES DIVIDING CATHOLIC AND PROTESTANT NEIGHBORHOODS POINTING TO BULLET HOLES IN THE WALL OF HIS OFFICE IN CATHOLIC NORTH BELFAST CITY COUNCILMAN JOE AUSTIN NOTES THAT THE GUNMEN GOT AWAY DESPITE THE NEARBY PRESENCE OF A BRITISH ARMY OUTPOST HIS CONTENTION THE BRITISH ARMY IGNORES EVEN ASSISTS PROTESTANT TERRORISTS BUT HIGHERCLASS PROTESTANT NEIGHBORHOODS ARE JUST AS SUSPICIOUS AFTER THE IRA BLEW UP A FISH SHOP HERE LAST MONTH MISSING A GROUP OF PROTESTANT TERRORISTS SCHEDULED TO MEET UPSTAIRS SOME PROTESTANT OFFICIALS ACCUSED BRITISH INTELLIGENCE OFFICIALS OF INFORMING THE IRA ABOUT THE MEETING BOTH SIDES ARE EQUALLY PARANOID SAYS MR ALDERDICE EXPLAINING THAT PROTESTANT LEADERS FEAR THE BRITISH GOVERNMENT WANTS OUT OF NORTHERN IRELAND AND TO THAT END IS AIDING THE IRA INDEED AS THE UPROAR OVER THE DISCLOSURE OF CONTACTS BETWEEN THE IRA AND BRITISH GOVERNMENT PROVES ANY CHANGE IN THE STATUS QUO WILL BE MET WITH FEAR AND OUTRAGE SPECIFICALLY THE GOVERNMENT'S CHALLENGE WILL BE TO WIN A CEASEFIRE FROM THE IRA UNDER TERMS THAT WON'T PROMPT PROTESTANT TERRORISTS TO START AN ALLOUT WAR OBSERVERS SAY ONE DISTURBING SIGN IS THAT IN MIDDLECLASS PROTESTANT NEIGHBORHOODS OUTRAGE AND DISGUST FOR ANTICATHOLIC TERRORIST GROUPS IS BEING REPLACED BY APPROVAL AND SUPPORT JUST LAST WEEK BRITISH OFFICIALS INTERCEPTED 370000 OF GUNS AND EXPLOSIVES THAT THEY SAID WAS DESTINED FOR PROTESTANT TERRORISTS HERE MANY HERE SEE THIS CONFLICT AS MORE COMPLEX THAN THE ISRAELIPALESTINE AFFAIR ON ONE SIDE ARE THE NATIONALISTS MOST OF THEM CATHOLIC WHO WANT NORTHERN IRELAND UNITED WITH THE REPUBLIC OF IRELAND ON THE OTHER SIDE ARE SOCALLED UNIONISTS NORTHERN IRELAND PROTESTANTS WHO WANT TO AVOID COMING UNDER IRISH RULE AND IN THE MIDDLE TRYING TO KEEP PEACE IN THE PROVINCE IS THE BRITISH GOVERNMENT WHICH IS UNDER ATTACK BY NATIONALISTS DEMANDING THAT IT LEAVE AND BY UNIONISTS WARNING IT NOT TO FOR YEARS TREATING THE DISPUTE AS HOPELESS BRITAIN HAS CONCERNED ITSELF MORE WITH POLICING THE TROUBLES THAN WITH TRYING TO RESOLVE THEM BUT IN RECENT WEEKS MR MAJOR HAS MADE THE ISSUE A HIGHER PRIORITY THAN HAS ANY BRITISH GOVERNMENT IN PERHAPS 20 YEARS DAYS AGO MR MAJOR REVERSED A YEARS OLD POLICY OF REFUSING CONTACT WITH ANY TERRORISTLINKED PARTY BY ANNOUNCING THAT IF THE IRA FORSOOK VIOLENCE HE WOULD INVITE ITS POLITICAL WING SINN FEIN TO THE BARGAINING TABLE THAT ANNOUNCEMENT INFURIATED MANY OF THE DOZEN PROTESTANT MEMBERS OF PARLIAMENT FROM BELFAST AND THEIR OUTRAGE ONLY INTENSIFIED THIS PAST WEEKEND WHEN THE MAJOR GOVERNMENT ADMITTED THAT IT HAD ACCEPTED AN IRA INVITATION LAST FEBRUARY TO EXPLORE THE POSSIBILITY OF PEACE TALKS ACCUSING MR MAJOR AND HIS SECRETARY OF STATE FOR NORTHERN IRELAND SIR PATRICK MAYHEW OF BAREDFACED LYING BECAUSE THEY'D REPEATEDLY DENIED ANY NEGOTIATIONS WITH THE IRA THE PROTESTANT LEADERS CALLED FOR THE RESIGNATIONS OF MESSRS MAJOR AND MAYHEW IN PARLIAMENT YESTERDAY SIR PATRICK THE NORTHERN IRELAND SECRETARY DENIED ANY SECRET NEGOTIATIONS WITH THE IRA SAYING THE GOVERNMENT HAD MERELY SAID IN PRIVATE WHAT IT HAS ALWAYS SAID IN PUBLIC THAT NO NEGOTIATION CAN TAKE PLACE UNTIL A HALT IS CALLED TO TERRORISM MEANWHILE MR MAJOR ALSO HAS UPSET THE UNIONISTS BY AGREEING TO TALK WITH MR REYNOLDS THE IRISH PRIME MINISTER MANY OF THE UNIONISTS CONTEND THAT MR MAJOR SHOULD REFUSE TO TALK WITH OFFICIALS OF THE REPUBLIC OF IRELAND UNTIL IT DROPS ARTICLES TWO AND THREE OF ITS CONSTITUTION WHICH CLAIM A RIGHT TO NORTHERN IRELAND MANY SAY THAT FOR MR MAJOR THE RISK OF ALIENATING BELFAST PROTESTANTS IN PARLIAMENT AND OTHER MPS DEDICATED TO MAINTAINING BRITISH RULE IN NORTHERN IRELAND IS OUTWEIGHED BY THE POLITICAL BENEFITS THAT WOULD FOLLOW FROM ANY BREAKTHROUGH HOWEVER UNLIKELY THAT IS NEGOTIATING SOME SORT OF SETTLEMENT IN NORTHERN IRELAND WOULD MAKE HIM AN INTERNATIONAL HERO SECURING HIM NOT ONLY A PLACE IN HISTORY BUT POSSIBLY A VICTORY IN THE NEXT ELECTION DESPITE HIS CURRENT UNPOPULARITY MANY BRITONS VIEW NORTHERN IRELAND AS A TREMENDOUS ALBATROSS IT ACCOUNTS FOR LESS THAN TWO MILLION OF THE NATION'S NEARLY 60 MILLION PEOPLE BUT THE COST OF BRITISH SECURITY FORCES HERE IS ENORMOUS NOT TO MENTION THE FINANCIAL AND HUMAN COSTS OF IRA ATTACKS SUCH AS THE APRIL BOMBING IN LONDON THAT KILLED ONE PERSON INJURED 45 AND CAUSED 148 BILLION IN DAMAGE MR MAJOR SAYS THE BRITISH GOVERNMENT IS PERFECTLY WILLING TO SURRENDER NORTHERN IRELAND TO THE REPUBLIC OF IRELAND BUT ONLY WHEN THAT IS THE WISH OF A MAJORITY OF NORTHERN IRELAND'S CITIZENRY WITH PROTESTANTS MAKING UP 60 OF THE PROVINCE'S POPULACE A VOTE TO JOIN THE REPUBLIC IS UNTHINKABLE AT THE MOMENT BUT THE CATHOLIC POPULATION HERE IS GROWING AT A FASTER RATE THAN THE PROTESTANT MAKING A CATHOLIC MAJORITY LIKELY AFTER THE TURN OF THE CENTURY MEANWHILE CONTROVERSY OVER GOVERNMENT CONTACT WITH THE IRA IS OVERSHADOWING AND PROBABLY DELAYING ANY EFFORTS TO STRIKE A COMPROMISE TYPICALLY THEORETICAL TALK OF COMPROMISE INCLUDES PLANS TO CREATE AN INDEPENDENT STATE TO REPLACE BRITISH SECURITY FORCES WITH EUROPEAN COMMUNITY FORCES TO ESTABLISH JOINT RULE BETWEEN IRELAND AND GREAT BRITAIN OR TO DIVIDE THE PROVINCE IN A WAY THAT WOULD GIVE CATHOLIC NEIGHBORHOODS TO IRELAND STILL SOME PEOPLE BELIEVE THAT IF THE APPETITE FOR COMPROMISE WERE SUBSTANTIAL THE ALLIANCE PARTY WOULD FARE BETTER THAN IT DOES YET NOT SURPRISINGLY CATHOLICS SEE ALLIANCE AS A WATEREDDOWN PROTESTANT PARTY AND PROTESTANTS SEE IT AS PANDERING TO CATHOLICS CONSEQUENTLY AFTER 23 YEARS THE ALLIANCE PARTY DRAWS LESS THAN 10 OF THE VOTE IN NORTHERN IRELAND SAYS ITS LEADER MR ALDERDICE IT'S MOST DIFFICULT TO CREATE MIDDLE GROUND IN SITUATIONS WHERE IT'S MOST NEEDED 9311300089 931130 WHO'S NEWS STANDARD MANAGEMENT CORP STANDARD MANAGEMENT CORP INDIANAPOLIS JOHN J QUINN CHIEF FINANCIAL OFFICER OF THE COMPANY AND JAMES C LANSHE CHAIRMAN OF REALAMERICA CO WERE NAMED DIRECTORS OF THIS INSURANCE HOLDING CONCERN INCREASING BOARD MEMBERSHIP TO SEVEN 9311300088 931130 TECHNOLOGY POLAROID PLANS TESTS OF LARGER FILM SIZE FOR ITS HELIOS SYSTEM CAMBRIDGE MASS POLAROID CORP SEEKING TO BROADEN THE APPEAL OF HELIOS ITS RECENTLY INTRODUCED MEDICAL IMAGING SYSTEM SAID IT PLANS TO OFFER A LARGER FILM FOR USE WITH THE SYSTEM THE COMPANY WHICH SHIPPED AN 8BY10 FORMAT OF HELIOS IN MARCH SAID IT WILL BEGIN CLINICAL TESTING NEXT YEAR OF A 14BY17 TRANSPARENCY FILM THE 8BY10 FORMAT IS USED LARGELY IN ULTRASOUND AND NUCLEARMEDICINE APPLICATIONS THE LARGER SIZE COULD BE USED FOR MAGNETICRESONANCE IMAGING AND DIGITAL XRAY AND COMPUTED TOMOGRAPHY PROCEDURES THE COMPANY SAID POLAROID WHICH SPECIALIZES IN INSTANTPHOTOGRAPHY EQUIPMENT HAS LONG BEEN SEEKING NEW BUSINESS THE HELIOS LASERIMAGING SYSTEM IS AN EFFORT TO DIVERSIFY BUT ITS RECEPTION HAS BEEN DISAPPOINTING EARLIER THIS YEAR POLAROID ESTIMATED IT WOULD SHIP HUNDREDS OF UNITS IN THIS YEAR HOWEVER LAST MONTH CITING UNCERTAINTIES IN THE US HEALTHCARE MARKET THE COMPANY SAID IT WOULDN'T MATCH ITS PREVIOUS PROJECTION HELIOS IS NOW BEING SHIPPED IN EUROPE THE COMPANY SAID ADDING THAT IT PLANS TO INTRODUCE A DRY REFLECTIVE PRINT FOR THE 8BY10 FORMAT THAT MAY BE USED FOR DOCUMENTATION AND RECORDKEEPING 9311300087 931130 INTERNATIONAL RARE RIFT IN MEXICO'S RULING PRI IS QUICKLY PATCHED UP BY SALINAS BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY A RARE RIFT BRIEFLY APPEARED IN THE RANKS OF THE LONGDOMINANT RULING PARTY BUT PRESIDENT CARLOS SALINAS DE GORTARI MANAGED TO PATCH THINGS UP BEFORE IT COULD BECOME A CRISIS THE RIFT SHOWED WHEN MANUEL CAMACHO SOLIS ABRUPTLY RESIGNED YESTERDAY AS MAYOR OF MEXICO CITY HE WAS ANGRY THAT HE HAD BEEN PASSED OVER WHEN THE RULING INSTITUTIONAL REVOLUTIONARY PARTY OR PRI NAMED ITS PRESIDENTIAL CANDIDATE OVER THE WEEKEND MR CAMACHO WIDELY BELIEVED TO HAVE BEEN THE RUNNERUP IN THE PRI'S SECRETIVE SELECTION PROCESS APPEARED TO BE FOLLOWING THE EXAMPLE OF CUAUHTEMOC CARDENAS WHO LEFT THE PRI WHEN HE DIDN'T GET ITS NOMINATION FOR THE 1988 PRESIDENTIAL ELECTIONS MR CARDENAS THEN FORMED A RIVAL PARTY AND MANY MEXICANS FEEL HE WOULD HAVE WON THE ELECTION IF NOT FOR WIDESPREAD FRAUD BY THE PRI CONCERN IN THE PRI ROSE WHEN IT WAS RUMORED THAT MR CARDENAS'S PARTY THE PARTY OF THE DEMOCRATIC REVOLUTION OR PRD HAD APPROACHED MR CAMACHO ABOUT JOINING THE FIT WOULD HAVE MADE SENSE MR CAMACHO IS KNOWN AS A POPULIST WHILE THE PRD IS A GENERALLY LEFTIST PARTY THAT RAILS AGAINST WHAT IT CONSIDERS TO BE THE ELITISM OF THE CONSERVATIVE PRI AND THE POPULAR MR CAMACHO COULD HAVE BEEN A HUGE HELP TO THE PRD WHICH HASN'T FARED WELL SINCE 1988 POLITICAL ANALYSTS SAY THAT PRESIDENT SALINAS INTERVENED TO KEEP MR CAMACHO IN THE PARTY IN ORDER TO PREVENT HIM FROM DOING ANYTHING THAT WOULD HURT THE CHANCES OF THE PRESIDENT'S HANDPICKED CANDIDATE LUIS DONALDO COLOSIO MR CAMACHO LONG A FAVORITE OF PRESIDENT SALINAS THEN AGREED TO STAY IN THE GOVERNMENT BY TAKING A LATERAL MOVE AND BECOMING THE MINISTER OF FOREIGN RELATIONS IN THE FOREIGNRELATIONS JOB MR CAMACHO SUCCEEDS FERNANDO SOLANA MORALES WHO BECOMES EDUCATION MINISTER MR SOLANA IN TURN SUCCEEDS ERNESTO ZEDILLO WHO RESIGNED TO BECOME MR COLOSIO'S CAMPAIGN MANAGER POLITICAL ANALYSTS FOUND MR ZEDILLO'S NEW POSITION SIGNIFICANT BECAUSE MR COLOSIO HAD BEEN THE CAMPAIGN MANAGER FOR MR SALINAS IN 1988 THAT RELATIONSHIP HELPED MR COLOSIO BUILD HIS CLOSE TIES TO THE PRESIDENT WHO BY TRADITION HAS BEEN ABLE TO CHOOSE HIS SUCCESSOR MR ZEDILLO HAD ALREADY BEEN MENTIONED AS ONE OF THE HALF DOZEN POLITICIANS WITH A CHANCE OF BECOMING THE RULINGPARTY CANDIDATE FOR THE 1994 ELECTIONS IN ANNOUNCING THE CHOICE OF MR ZEDILLO WHO LIKE MR COLOSIO IS IN HIS EARLY 40S MR COLOSIO REFERRED TO HIMSELF AND HIS NEW CAMPAIGN MANAGER AS PART OF A GROUP OF YOUNG TECHNOCRATS THAT HE HAS BEGUN CALLING THE GENERATION OF CHANGE BOTH MEN RESIGNED THEIR POSTS TO BEGIN THE CAMPAIGN FOR THE AUGUST ELECTIONS THE REACTION IN MEXICO YESTERDAY TO MR COLOSIO'S NOMINATION WAS GENERALLY MUTED BECAUSE HE HAD BEEN THE ODDSON FAVORITE FRANK DIGREGORIO A SENIOR EXECUTIVE WITH XEROX MEXICANA A UNIT OF XEROX CORP SAID IT WAS GOOD TO HAVE UNCERTAINTY REMOVED HE SAID THE LEGISLATIVE APPROVALS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT TOGETHER WITH THE NAMING OF THE PRI CANDIDATE MEAN THAT NOW WE KNOW WHAT THE RULES ARE FOR THE FUTURE AND WE CAN GET ON WITH OUR PLANS THE GENERAL PERCEPTION IS THAT MR COLOSIO STANDS FOR BOTH ECONOMIC REFORM AND POLITICAL CHANGE ONE OF THE THINGS HE'S BEEN ATTACKED FOR BY THE HARDLINERS IN THE PRI IS THAT THE OPPOSITION WON THREE GOVERNORSHIPS WHILE HE WAS THE HEAD OF THE PRI FROM 1988 THROUGH 1992 MR SALINAS SAID THOSE WERE THE FIRST THREE OF MEXICO'S 31 GOVERNORSHIPS EVER LOST BY THE PRI AND FRAUD WOULD HAVE BEEN USED IN THE PAST TO WIN THE POSTS FOR THE PRI SO THE LOSSES GIVE YOU AN IDEA WHAT HE'S ALL ABOUT MR SALINAS ADDED IT REMAINS TO BE SEEN HOW FAR MR COLOSIO WILL GO IN POLITICAL REFORM BUT HE DID OFFER TO DEBATE THE OPPOSITION CANDIDATES THIS WOULD BE THE FIRST TIME THAT ANY SENIOR PRI OFFICIAL HAD DEBATED AN OPPOSITION OFFICIAL IN THE SIX DECADES THE PRI HAS BEEN IN POWER 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 9311300086 931130 LETTERS TO THE EDITOR THE ARABS' WAR ON THEMSELVES SULIMAN S OLAYAN'S ANALYSIS OF THE PROSPECTS FOR MIDDLE EAST PEACE NO STATEHOOD NO PEACE EDITORIAL PAGE NOV 5 BEARS LITTLE RESEMBLANCE TO THE UNFORTUNATE REALITIES OF THAT REGION THE KEYSTONE TO HIS ANALYSIS IS THAT THE ARABISRAELI CONFLICT IS THE GREATEST SOURCE OF INSTABILITY IN THE MIDDLE EAST AND THAT A PEACEFUL SETTLEMENT WOULD BRING PEACE AND PROSPERITY TO THE REGION WHILE THE PROSPECT OF AN ISRAELIPALESTINIAN PEACE MAY LESSEN THE HARDSHIPS OF THESE TWO RELATIVELY SMALL COMMUNITIES IN SOME MANNER THE OVERWHELMING EVILS PLAGUING THE MIDDLE EAST WILL REMAIN AND IN ALL LIKELIHOOD WILL ABORT THE BIRTH OF THE NEW AGE OF PEACE AND RECONCILIATION MR OLAYAN PRESAGES IN THE PAST TWO DECADES THERE HAS BEEN ONLY ONE MAJOR ARABISRAELI CONFLICT THE 1982 WAR IN LEBANON DURING THE SAME PERIOD THERE HAVE BEEN MORE THAN A DOZEN INTERARAB OR INTERMUSLIM WARS THE ISRAELI OPPOSITION LEADER BENJAMIN NETANYAHU RECENTLY WROTE THERE IS SOMETHING UNCANNY ABOUT THE WORLD'S CAPACITY TO FOCUS ON THE ARABISRAELI DISPUTE WITH TOTAL CASUALTIES ESTIMATED AT 70000 DEAD OVER FIVE DECADES IN THE FACE OF THE CARNAGE OF OTHER MIDDLE EASTERN CONFLICTS SUCH AS THE EGYPTIAN INVASION OF YEMEN 250000 DEAD THE ALGERIAN CIVIL WAR ONE MILLION DEAD THE LEBANESE CIVIL WAR 150000 DEAD THE LIBYAN INCURSION INTO CHAD 100000 DEAD THE SUDANESE CIVIL WAR AT LEAST 500000 DEAD AND THE IRANIRAQ WAR MORE THAN ONE MILLION DEAD BUT ESPECIALLY AFTER THE GULF WAR AT LEAST 100000 DEAD AND POSSIBLY MANY MORE NO FAIRMINDED PERSON CAN ACCEPT THE PRETENSE THAT THE TURBULENT CONFLICTS RAGING EVERYWHERE IN THE MIDDLE EAST CAN BE FORCED INTO THE PALESTINIAN STRAITJACKET IN TRUTH THE GREATEST BARRIER TO PEACE AND PROSPERITY IN THE MIDDLE EAST IS THE DYSFUNCTIONAL NATURE OF ARAB/MUSLIM GOVERNMENTS WHETHER THEY BE TYRANNICAL MULLAHS MEDIEVAL MONARCHS OR TOTALITARIAN IDEOLOGUES AND THEIR VICTIMS ARE LEAST OFTEN TO BE THE DEMONIZED CITIZENS OF THE DEMOCRATIC SOCIETY OF ISRAEL BUT RATHER MORE OFTEN THE MASSES OF THE OPPRESSED WHO MUST SUFFER THEIR RULE MANY OF MR OLAYAN'S STATEMENTS ARE SO ERRONEOUS AS TO BE HUMOROUS SUCH AS HIS ASSERTION THAT A PALESTINIAN STATE WOULD POSE AS GREAT A THREAT TO ISRAEL AS PANAMA DOES TO THE UNITED STATES OR THAT ARAB STATES ARE TO BE LAUDED FOR ABANDONING THEIR ANNUAL OPPOSITION TO ISRAEL'S MEMBERSHIP IN THE UNITED NATIONS THE PROBLEM IS NOT SO MUCH WHAT A WEAK PALESTINIAN STATE MIGHT CHOOSE TO DO BUT AS ALWAYS SINCE 1948 WHAT OTHER ARAB AND MUSLIM LEADERS CHOOSE TO HAVE THE PALESTINIANS DO FOR THEM WHICH AGAIN DEMONSTRATES THE FATAL FLAW OF MR OLAYAN'S ANALYSIS NAMELY THAT WHAT ISRAELIS AND PALESTINIANS DO MATTERS FAR LESS IN A REGIONAL SENSE THAN WHAT 21 ARAB STATES AND IRAN DO TO EACH OTHER TO THE PALESTINIANS AND ULTIMATELY TO ISRAEL ONE WONDERS IF MR OLAYAN REMEMBERS THE HUNDREDS OF THOUSANDS OF PALESTINIANS FROM HIS OWN COUNTRY AND THE REST OF THE ARABIAN PENINSULA WHO WERE EXPELLED AFTER THE IRAQI INVASION OF KUWAIT AND WHO OFTEN FOUND REFUGE IN UTTER IRONY IN THE OCCUPIED WEST BANK AND GAZA STRIP AND ONE WONDERS HOW MUCH CAPITAL MR OLAYAN AS A FINANCIER AND BUSINESSMAN INVESTS IN SUCH PEACEFUL PLACES AS LEBANON SUDAN OR SOMALIA MR OLAYAN'S PASTORAL VIEW OF THE MIDDLE EAST AS SEEN FROM THE MARBLED PALACES OF RIYADH CERTAINLY DIFFERS FROM THAT OF THE SHIA OR KURDS IN IRAQ THE BAHAI IN IRAN THE MARONITES IN LEBANON THE COPTS IN EGYPT OR DEMOCRATIC IDEALISTS THROUGHOUT THE ARAB WORLD WHILE ISRAEL MAY MAKE PEACE WITH ITS ARAB NEIGHBORS THERE WILL BE NO PEACE IN THE MIDDLE EAST UNTIL IT IS SWEPT BY THE WINDS OF DEMOCRATIC CHANGE THAT HAVE BLOWN THROUGH SO MUCH OF THE REST OF THE WORLD IN RECENT YEARS 9311300085 931130 US RAWSTEEL OUTPUT ROSE 15 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 15 LAST WEEK TO 1816000 TONS FROM 1789000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 35 FROM THE 1755000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 863 OF ITS CAPABILITY LAST WEEK COMPARED WITH 85 THE PREVIOUS WEEK AND 812 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9311300084 931130 WHO'S NEWS PRIDE PETROLEUM SERVICES INC PRIDE PETROLEUM SERVICES INC HOUSTON JAMES B CLEMENT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OFFSHORE LOGISTICS INC LAFAYETTE LA WAS NAMED A DIRECTOR OF THIS OILFIELD SERVICE CONCERN MR CLEMENT 48 YEARS OLD FILLS A VACANCY ON THE SIXMEMBER BOARD 9311300083 931130 WOMB WITH A VIEW UNBORN BABIES STAR IN FETAL FILM FESTS SONOGRAPHERS ARE CASHING IN ON PRICEY PRENATAL VIDEOS WHAT A BEAUTIFUL BLADDER BY HEIDI EVANS STAFF REPORTER OF THE WALL STREET JOURNAL WATCHING HOME MOVIES AT KRISTY SIEGFRIED'S HOUSE IN HOUSTON ISN'T FOR THE FAINTHEARTED MRS SIEGFRIED WHO RECENTLY GAVE BIRTH WILL SHOW ANYONE WHO WALKS IN THE DOOR A 15MINUTE VIDEO OF HER FETUS SWIMMING IN AMNIOTIC FLUID WE SHOWED OUR TAPE TO MY WHOLE FAMILY ENTHUSES THE 22YEAROLD DENTAL ASSISTANT WHO PAID 75 FOR THE VIDEO WHICH WAS FILMED BY A COMPANY CALLED BABY IMAGES SHE EXPLAINS I'M NOT GOOD AT WAITING FOR THINGS PERHAPS IT WAS INEVITABLE IN AN AGE WHEN WEDDING VIDEOS ARE UBIQUITOUS AND BIRTH VIDEOS COMMONPLACE THAT THIS SHOULD BE THE NEXT FILM FRONTIER ALL OVER THE COUNTRY EXPECTANT MOMS AND DADS ARE PAYING AS MUCH AS 150 A POP FOR PRENATAL VIDEOS FILMED BY COMPANIES WITH ULTRASOUND EQUIPMENT AND CUTE NAMES LIKE A WOMB'S EYE VIEW OTHERS ARE HOUNDING THEIR DOCTORS TO MAKE VIDEO COPIES OF THEIR ULTRASOUND TESTS MEDICAL PROCEDURES THAT HELP DETERMINE THE HEALTH OF A FETUS DEVOTEES INSIST THAT THE VIDEOS AREN'T JUST A KEEPSAKE THEY ARE A WAY TO BOND WITH AN UNBORN CHILD PART OF THE ATTRACTION IS THAT ULTRASOUND PICTURES ALSO KNOWN AS SONOGRAMS ARE CLEARER THAN EVER BECAUSE OF TECHNOLOGICAL ADVANCES WHAT ONCE WAS A SERIES OF INDISTINGUISHABLE SWIRLS THAT MADE SENSE ONLY TO A TRAINED PHYSICIAN NOW CAN BE SNAPPED SO CLEARLY INTO FOCUS THAT EVEN AUNT OLIVE CAN MAKE OUT WHAT IS ON THE SCREEN WANT TO SEE FOOTAGE OF JUNIOR'S HEARTBEAT OR A CLOSEUP OF HIS BLADDER AT WORK JUST SLIP THE TAPE INTO THE VCR ALL OF WHICH IS A BIT TROUBLING TO MANY IN THE MEDICAL ESTABLISHMENT A PREGNANT WOMAN IS VERY FOOLISH AND MISINFORMED IF SHE OBTAINS THESE VIDEOS WITHOUT GETTING THE MEDICAL BENEFITS OF ULTRASOUND WARNS DR FRANK CHERVENAK HEAD OF ULTRASOUND AND ETHICS AT NEW YORK HOSPITALCORNELL MEDICAL CENTER WOMEN CAN BE FALSELY REASSURED THAT ALL IS GOING WELL WITH THEIR PREGNANCY THE PRENATAL PICTURES DO SERVE A WEIGHTY MEDICAL PURPOSE SONOGRAMS ARE CREATED BY BOUNCING HIGHFREQUENCY SOUND WAVES OFF OF ORGANS USING A HANDHELD TRANSDUCER THAT GLIDES OVER A PATIENT'S STOMACH THE TEST IS ROUTINELY PRESCRIBED DURING PREGNANCIES TO DETECT MULTIPLE BIRTHS DETERMINE THE AGE OF A FETUS AND SPOT PROBLEMS SUCH AS SPINA BIFIDA OR HEART DEFECTS MEDICAL SONOGRAPHERS TYPICALLY MAKE SURE THAT A PHYSICIAN HAS EXAMINED THE FILM TO RULE OUT ABNORMALITIES BEFORE THE PATIENT CAN GET HER HANDS ON A VIDEOTAPE BUT SONOGRAM TECHNICIANS WHO RUN COMMERCIAL PRENATAL VIDEO STUDIOS DON'T BOTHER WITH ALL THAT I DON'T CARE IF THE FETUS HAS THREE LEGS I'D ONLY POINT OUT TWO SAYS ERMA RAYFORD 43 WHO OWNS HOUSTON'S BABY IMAGES I DON'T CARE IF THEIR UTERUS HAS FIBROIDS OR IF THEY HAVE TOO MUCH OR TOO LITTLE AMNIOTIC FLUID OR WHERE THE PLACENTA IS I HAVE INFORMED THESE PEOPLE I'M NOT A DOCTOR THAT I'M NOT TRYING TO FIND ABNORMALITIES SHE HAS CUSTOMERS SIGN A DISCLAIMER ACKNOWLEDGING THAT THE SCAN IS FOR ENTERTAINMENT PURPOSES ONLY HER FEE LIKE THAT OF OTHER COMMERCIAL PRENATAL VIDEO MAKERS ISN'T COVERED BY INSURANCE PERHAPS NOT SURPRISINGLY THE COMMERCIAL PRENATAL MOVIEMAKERS GET A RESOUNDING THUMBS DOWN FROM JOAN BAKER WHO COFOUNDED THE SOCIETY OF DIAGNOSTIC MEDICAL SONOGRAPHERS IN 1970 AND WAS A KEY FORCE IN THE CREATION OF NATIONAL STANDARDS FOR SONOGRAPHERS THESE PEOPLE SHE SAYS ARE NOT EXACTLY THE PRIDE OF OUR PROFESSION FANS OF THE VIDEOS THOUGH SAY THEY ARE A GIFT THAT KEEPS ON GIVING NAOMI LEVY A 30YEAROLD SANTA MONICA CALIF RABBI SAYS SHE HAS WATCHED HER VIDEO FIVE TIMES SINCE HER SON ADIN WAS BORN LAST SUMMER TO SEE IF I CAN SEE ANYTHING LIKE TRACES OF CERTAIN BEHAVIORS SHE FINDS IT WEIRD FOR EXAMPLE THAT HE SUCKED HIS THUMB ALL THE TIME IN THE VIDEO BUT SINCE HE'S BEEN BORN HE HASN'T SUCKED IT AT ALL MS LEVY'S 70YEAROLD MOTHER RUTH ACCOMPANIED HER DAUGHTER TO THE DOCTOR AND MADE A COPY OF THE PRENATAL VIDEO TO TAKE HOME TO BROOKLYN NY WATCHING THE TAPE MAKES HER FEEL CLOSER TO THIS GRANDCHILD THAN TO ANY OF HER SEVEN OTHERS SHE SAYS AND THE VIDEO WAS THE CENTRAL PART OF WHAT BROUGHT US TOGETHER SOME DADS INSIST THE VIDEOS HELP THEM BOND BETTER TOO RICK HOFFENKAMP AN ANCHORAGE ALASKA AIRLINECARGO HANDLER STILL KEEPS A FRAMED FETAL PHOTO ON HIS DESK EVEN THOUGH HIS DAUGHTER TARYN WAS BORN IN AUGUST IT HELPED US TO BE MORE EXCITED HE SAYS OF THE VIDEO SONOGRAM SONOGRAPHERS STAND TO MAKE A BUNDLE BY OPENING UP PRICEY PRENATAL PHOTO STUDIOS MS RAYFORD OF HOUSTON'S BABY IMAGES SCANS AS MANY AS 10 PREGNANT WOMEN A DAY ON A PASTELCOLORED CHAISE LOUNGE IN HER HOMEY OFFICE SHE ISN'T CERTIFIED AS A MEDICAL SONOGRAPHER ALTHOUGH SHE WAS A HOSPITAL XRAY TECHNICIAN BEFORE GOING INTO BUSINESS HERSELF FOUR YEARS AGO NOW SHE IS TRYING TO SELL FRANCHISES FOR 100000 HER AD READS SONOGRAPHERS YOU CAN BE YOUR OWN BOSS IT'S NEW IT'S HOT SPECIALIZE IN PRODUCING ULTRASOUND VIDEO CASSETTE KEEP SAKES JAY GOUDEY A LOS ANGELES SONOGRAPHER WHO RECENTLY LAUNCHED A WOMB'S EYE VIEW OFFERS GIFT CERTIFICATES AND MAKES HOUSE CALLS MANHATTAN SONOGRAPHER LYNN WEISER ADVERTISES HER SERVICE ON POSTCARDSIZED BUSINESS CARDS PICTURING A FETUS SUCKING ITS THUMB FOR 150 HER ULTRASOUND STUDIO WILL PROVIDE PRENATAL PORTRAITS AND VIDEO FOR THE EXPECTANT MOTHER DALLAS SONOGRAPHER MELINDA TUCKER WHO PERFORMS DOCTORPRESCRIBED SONOGRAMS WORRIES THAT THE TREND HAS GOTTEN OUT OF HAND THESE DAYS WHEN A PREGNANT PATIENT IS USHERED INTO HER EXAMINING ROOM A MOB OF GRANDPARENTS INLAWS AND VARIOUS OTHER HANGERSON IS LIKELY TO PILE IN ALL NAGGING HER TO MAKE A VIDEOTAPE OF BABY'S VERY FIRST CHECKUP A LOT OF PEOPLE DON'T REALIZE HOW MANY THINGS CAN GO WRONG SHE SAYS IT DRIVES ME NUTS THAT THEY ARE MORE WORRIED ABOUT GETTING THAT TAPE YET EVEN MS TUCKER PLANS TO CASH IN ON THE CRAZE BY OPENING A PRENATAL VIDEO STUDIO WITH A COLLEAGUE AFTER ALL SHE FIGURES SHE WILL BE ABLE TO DOUBLE HER 35000 SALARY IF ENTERTAINMENT IS ALL THAT PEOPLE WANT MS TUCKER REASONS I'M GOING TO CAPITALIZE ON IT 9311300082 931130 FOREIGN EXCHANGE JAPAN'S ECONOMIC WOES BOOST DOLLAR BUT US CURRENCY FAILS TO PACE MARK BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TUMBLING TOKYO SHARE PRICES AND CONCERN OVER JAPAN'S DIRE ECONOMIC STRAITS SENT THE DOLLAR HIGHER AGAINST THE YEN MONDAY BUT THE DOLLAR COULDN'T KEEP PACE WITH THE MARK ENDING SLIGHTLY LOWER AS INVESTORS AWAITED A PARADE OF ECONOMIC NEWS SET FOR LATER THIS WEEK LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17080 MARKS DOWN FROM 17136 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10920 YEN UP FROM 10888 YEN STERLING WAS TRADING AT 14895 UP FROM 14790 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10913 YEN AND AT 17081 MARKS THE DOLLAR SHOWED SOME PEP AGAINST THE YEN TRADERS NOTED AS PESSIMISM OVER THE HEALTH OF THE JAPANESE ECONOMY AND ANOTHER SLIDE IN THE TOKYO STOCK MARKET HELPED THE DOLLAR BREAK ABOVE SOME KEY TECHNICAL LEVELS THE TOKYO STOCK MARKET'S NIKKEI INDEX DROPPED 64766 POINTS MONDAY TO CLOSE AT 1607871 A NEW LOW FOR THE YEAR PEOPLE ARE LOOKING TO SELL YEN AND BUY JUST ABOUT ANYTHING SAID PETER CORSI ASSISTANT VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN LTD IN NEW YORK IT DOESN'T LOOK LIKE THEIR ECONOMY HAS HIT BOTTOM YET WITH THE ECONOMY SUFFERING AND STOCK PRICES HEADING SOUTH TRADERS AGREED THAT THE YEN IS LIKELY TO COME UNDER INCREASING SELLING PRESSURE AS FOREIGN INVESTORS SHED SOME JAPANESE ASSETS AND PREPARE FOR ANOTHER CUT IN JAPAN'S OFFICIAL DISCOUNT RATE ALREADY AT A MINUSCULE 175 WE SHOULD EASILY SEE 110 YEN BY THE END OF THE YEAR SAID BOB MCENTEE A VICE PRESIDENT AT FIDELITY BANK IN PHILADELPHIA BEFORE THAT LEVEL IS REACHED HOWEVER MR CORSI NOTED THAT THE DOLLAR WILL HAVE TO PIERCE SELLING INTEREST AT AROUND THE 10950 YEN LEVEL WHICH HALTED THE DOLLAR'S ADVANCE MONDAY JAPANESE EXPORTING COMPANIES WHICH SELL THEIR PRODUCTS FOR DOLLARS AND OTHER CURRENCIES AND THEN MUST CONVERT THOSE PROCEEDS TO YEN WILL CONTINUE TO BE HEAVY DOLLAR SELLERS AS THE YEN DECLINES ANYTHING ABOVE 110 YEN IS GOING TO LOOK LIKE A GOOD SELL TO JAPANESE EXPORTERS HE SAID PART OF THE MONEY FLOWING OUT OF THE YEN MONDAY WENT INTO THE MARK HELPING TO GIVE THE GERMAN CURRENCY A BOOST AGAINST THE DOLLAR ALSO SUPPORTING THE MARK WAS A COMMENT BY HANS TIETMEYER PRESIDENT OF THE BUNDESBANK GERMANY'S CENTRAL BANK WHO REITERATED THAT HE DOESN'T THINK A WEAKER MARK WOULD HELP REVIVE THE EUROPEAN ECONOMY BUT TRADERS ATTRIBUTED MOST OF THE DOLLAR'S LOSSES AGAINST THE MARK MONDAY TO PROFITTAKING AHEAD OF THIS WEEK'S PARADE OF US ECONOMIC DATA THE RELEASE OF INFORMATION KICKS OFF TUESDAY WITH A SURVEY OF CONSUMER CONFIDENCE AND WINDS UP FRIDAY WITH A CRUCIAL REPORT ON US JOB CREATION ALONG THE WAY PLAYERS ALSO WILL BE SCRUTINIZING THE UK BUDGET STATEMENT SET FOR TUESDAY AND WATCHING A KEY BUNDESBANK MEETING THURSDAY WHICH SOME SAY COULD PRODUCE A CUT IN GERMAN INTEREST RATES 9311300081 931130 SINGAPORE FUND RIGHTS OFFERING JERSEY CITY NJ SINGAPORE FUND INC SAID IT COMPLETED A RIGHTS OFFERING SELLING 17 MILLION COMMON SHARES AND RAISING ABOUT 263 MILLION THE OFFERING INCREASED COMMON SHARES OUTSTANDING TO 68 MILLION AND BOOSTED NET ASSETS TO ABOUT 112 MILLION THE CLOSEDEND FUND INVESTS IN SINGAPORE EQUITY SECURITIES 9311300080 931130 WHAT'S NEWS WORLDWIDE THE SUPREME COURT AGREED TO REVISIT A LANDMARK CHURCHSTATE RULING THE COURT WILL USE A CASE INVOLVING A NEW YORK SCHOOL DISTRICT CREATED FOR CHILDREN OF A HASIDIC JEWISH COMMUNITY TO DECIDE HOW FAR GOVERNMENT CAN GO TO ACCOMMODATE RELIGIOUS PRACTICES THE DISTRICT IS ASKING THE COURT TO OVERTURN A 1971 RULING LEMON VS KURTZMAN THAT SET A STANDARD USED IN DECIDING MANY CHURCHSTATE CASES THE COURT HAS REEXAMINED THE RULING BEFORE BUT NEVER REPLACED IT JUSTICES PERMITTED PERENNIAL PRESIDENTIAL CANDIDATE LYNDON LAROUCHE ALTHOUGH IMPRISONED FOR FRAUD TO COLLECT FEDERAL FUNDS FOR HIS 1992 CAMPAIGN THE BRITISH GOVERNMENT REAFFIRMED THAT IT IS READY TO HOLD TALKS WITH THE IRA IF THE GROUP RENOUNCES VIOLENCE THE NORTHERN IRELAND SECRETARY DEFENDING THE GOVERNMENT BEFORE PARLIAMENT FOLLOWING THE WEEKEND REVELATION THAT IT HAS HAD SECRET CONTACTS WITH THE IRA SAID THE OFFER REMAINED ON THE TABLE ISRAEL CAPTURED THE COMMANDER OF THE FATAH HAWKS THE MILITARY WING OF ARAFAT'S PLO FACTION AND TWO AIDES FOLLOWING A GAZA STRIP SHOOTOUT PRIME MINISTER RABIN'S GOVERNMENT SURVIVED A PARLIAMENTARY CHALLENGE BY THE OPPOSITION LIKUD WHICH SAID VIOLENCE IN THE OCCUPIED TERRITORIES SHOWED THE ISRAELPLO PEACE ACCORD WAS A SHAM THE US OPPOSED AN EC PLAN TO EASE SANCTIONS AGAINST YUGOSLAVIA IF BELGRADE PERSUADES BOSNIA'S SERBS TO GIVE UP SOME OF THE LAND THEY CAPTURED IN THE 19MONTHOLD WAR IN THE FORMER YUGOSLAV REPUBLIC AT THE OPENING OF PEACE TALKS IN GENEVA YUGOSLAVIA'S MILOSEVIC DEMANDED AN END TO SANCTIONS BEFORE HE WOULD AGREE TO THE PLAN CUBANS WERE DEFECTING IN DROVES DURING AN INTERNATIONAL ATHLETIC COMPETITION BEING HELD IN PUERTO RICO AS OF YESTERDAY AT LEAST 39 HAD REQUESTED POLITICAL ASYLUM IN THE US AND MORE ARE EXPECTED TO DO SO BEFORE THE GAMES END TODAY CUBA SENT A DELEGATION OF 881 WHICH INCLUDED ATHLETES STATE SECURITY AGENTS AND JOURNALISTS TO THE GAMES ROMANIAN PROTESTERS DEMANDED THE RESIGNATION OF THE GOVERNMENT AND PRESIDENT ILIESCU IN DEMONSTRATIONS IN BUCHAREST AND SEVERAL OTHER CITIES THE PROTESTERS MOSTLY TRADE UNION MEMBERS EXPRESSED UNHAPPINESS WITH THE PACE OF POLITICAL AND ECONOMIC REFORMS SINCE THE FORMER COMMUNIST GOVERNMENT WAS OVERTHROWN FOUR YEARS AGO AN AFRIKANER GROUP SAID IT WOULD HOLD A WHITESONLY ELECTION IN PREPARATION FOR FORMING AN INDEPENDENT STATE LED BY DESCENDANTS OF SOUTH AFRICA'S DUTCH SETTLERS THE GOVERNMENT AND THE AFRICAN NATIONAL CONGRESS CALLED THE PLAN UNREALISTIC BUT BOTH CONTINUED TALKS WITH THE AFRIKANER VOLKSFRONT AN UMBRELLA ORGANIZATION OF WHITE GROUPS AFRICAN LEADERS TOLD REPRESENTATIVES OF SOMALIA'S WARRING FACTIONS THAT THEY FACED AN END TO INTERNATIONAL ASSISTANCE UNLESS THEY HALT THEIR FIGHTING THE US SAID IT STILL HOPED SOMALI CLAN LEADER AIDID WOULD ATTEND THE CONFERENCE OF RELIEF ORGANIZATIONS IN ETHIOPIA AIDID WHO SAID HE WILL BOYCOTT THE TALKS URGED THE UN TO LEAVE SOMALIA A FORMER BRAZILIAN OFFICIAL WAS ARRESTED IN BANGKOK AND FACES EXTRADITION TO BRAZIL FOR HIS ROLE IN A CORRUPTION SCANDAL THAT LED TO THE OUSTER OF EXPRESIDENT COLLOR LAST YEAR BRAZILIAN POLICE HAVE ALSO DISCOVERED THE BODY OF THE WIFE OF AN OFFICIAL WHO ALLEGEDLY HAD HER KILLED TO COVER UP A CONGRESSIONAL FRAUD SCANDAL UKRAINE'S PRESIDENT ASSURED CLINTON THAT A TREATY CALLING FOR THE ELIMINATION OF NUCLEAR ARMS IN THE FORMER SOVIET STATE WOULD BE SUBMITTED TO A NEW PARLIAMENT TO BE ELECTED IN MARCH CLINTON TELEPHONED KRAVCHUK TO EXPRESS US DISPLEASURE AT CONDITIONS IMPOSED BY THE CURRENT PARLIAMENT IN ITS APPROVAL OF THE 1991 START TREATY ABKHAZIAN SEPARATISTS WERE ATTACKING VILLAGES ALONG THE BORDER WITH GEORGIA THE GEORGIAN DEFENSE MINISTRY SAID AS DELEGATES FROM BOTH SIDES PREPARED FOR UNMEDIATED PEACE TALKS IN GENEVA TODAY VILLAGES NEAR THE FIGHTING WERE BEING EVACUATED THE MINISTRY SAID SEPARATISTS DROVE GEORGIAN FORCES FROM ABKHAZIA IN SEPTEMBER MUBARAK APPROVED DEATH SENTENCES FOR 11 MUSLIM MILITANTS CONVICTED OF TRYING TO OVERTHROW THE EGYPTIAN GOVERNMENT NINE BELONG TO A GROUP THAT CLAIMED RESPONSIBILITY FOR THE ATTEMPTED ASSASSINATION OF THE COUNTRY'S PRIME MINISTER LAST WEEK THOUGH THEIR CONVICTIONS WERE UNRELATED TO THAT INCIDENT 9311300079 931130 CREDIT RATINGS GILLETTE CO BOSTON MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED THE LONGTERM DEBT RATINGS OF THIS CONSUMERPRODUCTS COMPANY AND ITS GUARANTEED SUBSIDIARY GILLETTE FINANCE BV TO SINGLEA1 FROM SINGLEA2 CITING PROFIT MOMENTUM CASH FLOW AND STRONG MARKET POSITION IN THE BLADE AND RAZOR BUSINESS APPROXIMATELY 750 MILLION OF DEBT WAS AFFECTED THE RATINGS AGENCY SAID UPGRADED ARE GILLETTE'S 625 SENIOR NOTES DUE 2003 475 SENIOR NOTES DUE 1996 575 SENIOR NOTES DUE 2005 AND SHELF REGISTRATION FOR SENIOR NOTES THE UPGRADE INCLUDES GILLETTE FINANCE'S 6 GUARANTEED EURONOTES DUE 1994 AND 6375 GUARANTEED EURONOTES DUE 1993 A GUARANTEED BOND IS A DEBT SECURITY FOR WHICH THE PRINCIPAL AND INTEREST ARE GUARANTEED BY A COMPANY OTHER THAN ISSUER 9311300078 931130 TECHNOLOGY & HEALTH AIDS PANEL TO SLICE REGULATORY RED TAPE BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL ON THE EVE OF WORLD AIDS DAY THE CLINTON ADMINISTRATION IS PROPOSING TO REMEDY THE DROUGHT IN NEW AIDS DRUGS BY FORMING A TASK FORCE TO REMOVE ROADBLOCKS THAT IMPEDE COMPANIES FROM MOVING NEW DRUGS FROM THE TESTTUBE THROUGH TESTING AND INTO THE MARKETPLACE SECRETARY OF HEALTH AND HUMAN SERVICES DONNA SHALALA WILL ANNOUNCE TODAY A NEW FEDERAL TASK FORCE ON AIDS DRUG DEVELOPMENT COMBINING THE NATIONAL INSTITUTES OF HEALTH AND THE FOOD AND DRUG ADMINISTRATION WITH CORPORATIONS AND THE COMMUNITIES HARDESTHIT BY THE EPIDEMIC IT IS TIME TO REFOCUS OUR BEST MINDS FOR A CONCERTED ATTACK ON THIS KILLER DR SHALALA SAYS IN REMARKS PREPARED FOR DELIVERY TODAY ABOUT ONE MILLION US CITIZENS ARE INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS THAT CAUSES AIDS OR ACQUIRED IMMUNE DEFICIENCY SYNDROME ANOTHER 340000 PEOPLE HAVE ALREADY CONTRACTED THE DISEASE OF WHICH 200000 HAVE DIED WORLD AIDS DAY TOMORROW IS AN ANNUAL GLOBAL OBSERVATION DESIGNED TO TAKE STOCK OF THE EPIDEMIC'S INEXORABLE PROGRESS AND SOCIETY'S RESPONSE TO IT DR SHALALA SAID SHE'LL SOLICIT NOMINATIONS TO THE 15MEMBER NATIONAL TASK FORCE ON AIDS DRUG DEVELOPMENT OVER THE NEXT 30 DAYS WHILE THE COMMITTEE'S MAKEUP ISN'T YET KNOWN MERCK & CO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER P ROY VAGELOS WHO HAS CHAMPIONED DRUG INDUSTRY COLLABORATION IN AIDS DRUG DEVELOPMENT IS JOINING A LIST OF BACKERS AT A NEWS CONFERENCE TO BE HELD TODAY AT THE NATIONAL INSTITUTES OF HEALTH THE MOVE IS GREETED GINGERLY BY AIDS ACTIVISTS I'M WARY BUT ONE CAN ONLY HOPE SAID NEW YORK PLAYWRIGHT AND AIDS ACTIVIST LARRY KRAMER LED BY HHS ASSISTANT SECRETARY FOR HEALTH PHILIP R LEE THE TASK FORCE IS SAID TO BE THE BRAINCHILD OF FDA COMISSIONER DAVID KESSLER WHO HAS LONG STRIVEN TO CUT REGULATORY RED TAPE AND SPEED APPROVAL OF PROMISING AIDS DRUGS BUT DESPITE DR KESSLER'S FAST TRACK TO MARKET APPROVAL DR SHALALA NOTES THERE IS A DEARTH OF NEW DRUGS NOW EMERGING FROM THE DEVELOPMENT PIPELINE AND INTO THE REGULATORY HOME STRETCH THE SAD FACT REMAINS THAT NOT A SINGLE NEW DRUG APPLICATION FOR AN AIDS ANTIVIRAL DRUG IS CURRENTLY BEFORE THE FDA SHE SAYS IN HER PREPARED ADDRESS NO MATTER HOW MUCH WE SHORTEN THE PIPELINE WE CANNOT ACHIEVE OUR GOAL UNLESS WE START FILLING THAT PIPELINE WITH PROMISING COMPOUNDS FEDERAL HEALTH OFFICIALS HAVE QUIETLY FLOATED THE PROPOSAL FOR THE SOCALLED NATIONAL TASK FORCE ON AIDS DRUG DEVELOPMENT BEFORE A NUMBER OF AIDS ACTIVISTS IN RECENT DAYS TO MIXED REVIEWS THE BURDEN WILL BE ON GOVERNMENT TO SHOW THIS COMMITTEE HAS TEETH SAID MARTIN DELANEY OF PROJECT INFORM A PANEL OF THE PRESTIGIOUS INSTITUTE OF MEDICINE HAS HAD AN IDENTICAL MISSION FOR FOUR YEARS HE NOTED ADDING THE NEW INITIATIVE DOESN'T WARRANT APPLAUSE JUST BECAUSE THEY'RE CREATING ANOTHER COMMITTEE WE NEED SUBSTANCE AND ACTION DR SHALALA INSISTS THE NEW BODY WON'T SIMPLY ADD TO THE TRAIL OF PASSIONATE AIDS REPORTS CONSIGNED TO OBLIVION LET ME BE CLEAR THIS IS NOT JUST ANOTHER GOVERNMENT PANEL APPOINTED TO STUDY AN ISSUE AND WRITE A REPORT THAT GATHERS DUST SHE SAYS BUT THERE'S NO GUARANTEE THE TASK FORCE WILL SUCCEED IN CUTTING THROUGH REGULATORY PROPRIETARY AND FINANCIAL ROADBLOCKS WHICH DISCOURAGE OR DELAY COMPANIES FROM UNDERTAKING COSTLY HIGHRISK DRUG DEVELOPMENT AGAINST THE ELUSIVE AIDS VIRUS FDA DOESN'T HAVE RESOURCES TO DO WHAT IT'S CHARGED TO DO MR DELANEY COMPLAINED DR KESSLER'S ACTIVISM FROM THE ATOP FDA SOMETIMES SEEMS SLOWED BY CONSERVATIVE STAFF SCIENTISTS WITHIN THE AGENCY HE ADDED COMPLEX RESEARCH AND DEVELOPMENT AGREEMENTS SQUABBLES OVER WHO GETS CREDIT FOR A DISCOVERY AND GOVERNMENT PRESSURE ON INDUSTRY TO RESTRAIN PRICES FURTHER CHILL CORPORATE INVOLVEMENT IN THE AIDS DRUG MARKET MR DELANEY SAID EVEN MORE DAUNTED THAN LARGER AND RICHER DRUG COMPANIES SMALL BIOTECHNOLOGY COMPANIES MAY NOW RISK SCARCE CAPITAL TO DEVELOP A NEW AIDS THERAPY IN COOPERATION WITH ONE FEDERAL AGENCY ONLY TO FIND THEIR EFFORTS HAMSTRUNG BY ANOTHER AGENCY HE ADDED THEY'VE BEEN SENDING MIXED SIGNALS MR DELANEY SAID AT LEAST THIS COMMITTEE WILL ENABLE DIFFERENT AGENCIES TO WORK FROM A COMMON DECK FOR MARK HARRINGTON A MEMBER OF THE NEW YORKBASED TREATMENT ACTION GROUP THE ONLY QUESTION IS WHERE ARE THE DRUGS AFTER 12 YEARS OF THE EPIDEMIC AIDS TREATMENT HAS PROGRESSED LITTLE BEYOND AZT MADE BY WELLCOME PLC AND ITS SISTER DRUGS DDI FROM BRISTOLMYERS SQUIBB CO AND DDC FROM ROCHE HOLDING LTD WE'VE GOTTEN A GENERATION OF DRUGS OUT AND QUALITY OF LIFE HAS IMPROVED MR HARRINGTON SAID BUT AIDS IS STILL A FATAL DISEASE 9311300077 931130 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY NOVEMBER 17 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9311300076 931130 MARKETING & MEDIA PAUL KAGAN IN PACT TO BUY CONTROL OF BASELINE INC CARMEL CALIF PAUL KAGAN ASSOCIATES INC A MEDIARESEARCH CONCERN SAID IT AGREED TO ACQUIRE CONTROL OF BASELINE INC A MEDIAINFORMATION DATABASE OPERATOR TERMS WEREN'T DISCLOSED BOTH COMPANIES ARE CLOSELY HELD AND WELLKNOWN IN THE ENTERTAINMENT BUSINESS PAUL KAGAN ASSOCIATES TRACKS VARIOUS MOVIE AND TELEVISION STATISTICS AS WELL AS PUBLISHING REFERENCE BOOKS AND NEWSLETTERS AND CONDUCTING CONFERENCES BASELINE HEADQUARTERED IN NEW YORK PROVIDES MOVIE AND TELEVISION INFORMATION AND STATISTICS ELECTRONICALLY TO USERS' PERSONAL COMPUTERS PAUL KAGAN CHAIRMAN AND PRINCIPAL STOCKHOLDER OF THE COMPANY BEARING HIS NAME SAID PAUL KAGAN ASSOCIATES AND RELATED COMPANIES EMPLOY ABOUT 90 PEOPLE BASELINE HAS ABOUT TWO DOZEN EMPLOYEES HE SAID HE DECLINED TO DISCLOSE OTHER FINANCIAL DATA THE TRANSACTION AGREED TO CALLS FOR THE PURCHASE OF INVESTOR SY SIMS'S CONTROLLING STAKE OF MORE THAN 90 OF BASELINE STOCK MR KAGAN SAID 9311300075 931130 GM PLANS OVERTIME FOR OVER TWOTHIRDS OF ITS PLANTS IN US DETROIT GENERAL MOTORS CORP SAID IT SCHEDULED OVERTIME THIS WEEK AT MORE THAN TWOTHIRDS OF ALL OF ITS US ASSEMBLY PLANTS GM SAID 18 OF ITS CAR AND TRUCK ASSEMBLY PLANTS ARE SCHEDULED TO WORK 10 OR MORE HOURS OF OVERTIME THIS WEEK WITH THREE OTHER ASSEMBLY PLANTS WORKING LESS THAN 10 HOURS FORD MOTOR CO SAID IT OPERATED DAILY OVERTIME THIS PAST WEEK AT ASSEMBLY PLANTS IN LORAIN OHIO WAYNE AND DEARBORN MICH KANSAS CITY MO NORFOLK VA EDISON NJ TWIN CITIES MINN LOUISVILLE KY ATLANTA AND CHICAGO SEPARATELY FORD SAID ITS LORAIN OHIO TRUCK ASSEMBLY PLANT THAT BUILDS LARGE VANS IS IDLE THIS WEEK BECAUSE OF A PLANNED INVENTORY ADJUSTMENT CHRYSLER CORP SAID IT WILL OPERATE DAILY OVERTIME THIS WEEK AT ITS TRUCK ASSEMBLY PLANT IN WARREN MICH THE NO 3 AUTO MAKER SAID ITS ASSEMBLY PLANTS IN WINDSOR AND BRAMALEA ONTARIO WORKED SATURDAY OVERTIME LAST WEEK ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLANNED TO BUILD 139802 CARS AND TRUCKS LAST WEEK DOWN 359 FROM 218155 COMPARED WITH A YEAR AGO WHICH DIDN'T INCLUDE THE CUSTOMARY THANKSGIVING HOLIDAY SHUTDOWN 9311300074 931130 BUSINESS BRIEFS ARM FINANCIAL GROUP INC COMPLETED THE PURCHASE OF INTEGRITY LIFE INSURANCE CO AND NATIONAL INTEGRITY LIFE INSURANCE CO FROM NATIONAL MUTUAL LIFE ASSOCIATION LTD VERIFONE INC REPURCHASED 440000 COMMON SHARES OUTSTANDING IN OPENMARKET TRANSACTIONS TERMS WEREN'T DISCLOSED PRIDE PETROLEUM SERVICES INC AN OILFIELD SERVICES CONCERN SIGNED A LETTER OF INTENT TO ACQUIRE OFFSHORE RIGS OF HOUMA LA A CLOSELY HELD OPERATOR OF WORKOVER RIGS TERMS WEREN'T DISCLOSED BUT THE ACQUISITION IS EXPECTED TO BE TO COMPLETED IN APRIL KNOWLEDGE EXPRESS LC A UNIT OF TELESCAN INC RECEIVED A TWOYEAR GRANT VALUED AT ABOUT 4 MILLION FROM THE US GOVERNMENT FOR CREATION OF AN ELECTRONIC AND COMMUNICATIONS NETWORK FINAL NEGOTIATIONS ARE EXPECTED TO BE COMPLETED BY JAN 15 9311300073 931130 COMMODITIES PRECIOUSMETALS PRICES TUMBLE AMID EROSION IN ENERGY MARKETS WEAKNESS OF JAPANESE STOCKS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS PRICES TUMBLED IN RESPONSE TO THE ROUT IN WORLDENERGY MARKETS AND BECAUSE OF THE WEAKNESS OF THE JAPANESE STOCK MARKET AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN 770 TO 37150 AN OUNCE WHILE THE MARCH SILVER CONTRACT FELL 199 CENTS TO 449 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JANUARY DELIVERY PLUNGED 940 TO 36630 AN OUNCE THE PRICE SLUMP BEGAN IN PLATINUM MARKETS OF THE FAR EAST WHICH WERE REACTING TO A STEEP SLIDE IN THE NIKKEI INDEX OF JAPANESE STOCKS THE DOLDRUMS OF THE JAPANESE ECONOMY ARE UNFAVORABLE FOR THE PRICE OF PLATINUM WHICH IS USED BY THE JAPANESE AUTO INDUSTRY TO MAKE CATALYTIC CONVERTERS BUT THE SLUMP SPILLED OVER INTO OTHER PRECIOUSMETALS MARKETS AFTER THE PRICE OF CRUDE OIL BEGAN FALLING EARLY YESTERDAY THE METALS WERE HEAVILY IMPACTED BY THE OIL SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IT PUSHED PRICES THROUGH SOME TECHNICAL SUPPORT LEVELS AND ACCELERATED THE DECLINE COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY WERE BIG SELLERS OF PRECIOUSMETALS FUTURES CONTRACTS LATE YESTERDAY MORNING ANALYSTS SAID GOLD PRICES TEND TO FOLLOW OIL PRICES LOWER BECAUSE GOLD IS SENSITIVE TO INFLATION AND CRUDEOIL PRICE DECLINES ARE OFTEN INTERPRETED AS INDICATING AN ABSENCE OF INFLATION IN THE ECONOMY DESPITE YESTERDAY'S ROUT MOST ANALYSTS HESITATE TO PREDICT CONTINUED EROSION OF PRECIOUSMETALS PRICES THEY NOTE THAT INDUSTRIAL BUYERS OF GOLD INCLUDING THE JEWELRY AND ELECTRONICS INDUSTRIES CAME INTO THE MARKET AS BUYERS YESTERDAY WHEN GOLD'S PRICE DROPPED BELOW 372 AN OUNCE THE MARKET IS STILL ESTABLISHING A LONGTERM BASE SAID IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING AT CREDIT SUISSE WHAT'S INTERESTING IS THE FACT THAT EVEN THE INDUSTRIAL USERS HAVE REALIZED THEY HAVE TO PAY HIGHER PRICES FOR GOLD IT'S ENCOURAGING THE PERFORMANCE OF THE MARKET AT THIS POINT IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS PRICES OF MOST GRAINFUTURES CONTRACTS WERE DEPRESSED BY THE SLUMP IN CRUDEOIL AND PRODUCTFUTURES PRICES WHEAT CONTRACTS WERE THE MOST VULNERABLE TO THE RETREAT IN PART BECAUSE THEY HAVE BEEN AMONG THE STRONGEST PERFORMERS OF THE AGRICULTURAL CONTRACTS IN RECENT WEEKS IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR DECEMBER DELIVERY SANK FIVE CENTS A BUSHEL TO SETTLE AT 35275 A BUSHEL GRAIN TRADERS ARE ALSO NERVOUS THAT FUTURES PRICES ARE POISED TO SWING WILDLY IN THE SHORT TERM TRADERS ARE CONCERNED ABOUT THE TIGHT SUPPLY OF WHEAT AVAILABLE FOR THEM TO SATISFY THEIR DELIVERY OBLIGATIONS AT THE MINNEAPOLIS GRAIN EXCHANGE AS WELL AS THE SUPPLY OF CORN THAT IS DELIVERABLE AT THE CHICAGO BOARD OF TRADE LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES DECLINED THE DAILY LIMIT AS TRADERS ANTICIPATED A SEASONAL INCREASE IN HOG SLAUGHTER AT THE CHICAGO MERCANTILE EXCHANGE PORK BELLIES FOR FEBRUARY DELIVERY WERE DOWN 2 CENTS TO 5210 CENTS A POUND WHILE THE FEBRUARY HOG FUTURES CONTRACT FELL 12 CENT TO 4717 CENTS A POUND TYPICALLY THE LARGEST WEEKLY HOG SLAUGHTER OF THE YEAR OCCURS EITHER THE WEEK BEFORE OR THE WEEK AFTER THANKSGIVING SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS MANY TRADERS ARE ANTICIPATING THAT THIS WEEK'S SLAUGHTER WILL BE THE YEAR'S BIGGEST 9311300072 931130 MONDAY'S MARKETS BOND RALLY FIZZLES OUT STOCKS SLIP PROFITTAKING ERODES EARLY GAINS SPURRED BY LOWER OIL PRICES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A BONDMARKET RALLY SPURRED BY LOWER OIL PRICES LOST STEAM IN THE LATE AFTERNOON WITH PRICES SURRENDERING MOST OF THEIR GAINS STOCK PRICES ALSO REVERSED COURSE ENDING LOWER THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 615 POINTS TO 367780 STANDARD & POOR'S 500STOCK INDEX SLID 116 TO 46190 AND THE NASDAQ COMPOSITE INDEX FELL 333 TO 75154 BOND TRADING BEGAN ON AN OPTIMISTIC NOTE AS OIL PRICES CONTINUED TUMBLING IN THE WAKE OF LAST WEEK'S FAILURE BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO AGREE ON PRODUCTION CUTS IN NEW YORK MERCANTILE EXCHANGE TRADING JANUARYDELIVERY OIL SANK 107 A BARREL TO 1531 CAUSING OTHER COMMODITY PRICES TO WEAKEN AND BOOSTING INVESTORS' OPTIMISM ABOUT CONTINUED LOW INFLATION EARLY IN THE DAY BOND INVESTORS EVEN OVERLOOKED A JUMP IN OCTOBER HOME SALES TO FOCUS ON THE UPBEAT INFLATION PROSPECTS SALES OF EXISTING SINGLEFAMILY HOMES ROSE 36 IN OCTOBER FROM SEPTEMBER TO THEIR HIGHEST LEVEL IN 14 YEARS ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS BUT THEN PROFITTAKERS MOVED IN KNOCKING THE WIND OUT OF THE RALLY THE BOND MARKET STARTED OUT LOOKING LIKE IT WAS GOING TO HAVE A NICE RALLY BUT IT NEVER REALLY GOT GOING SAID WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO STOCKS FOLLOWED BONDS HIGHER WITH THE DOW INDUSTRIALS GAINING MORE THAN 16 POINTS BEFORE SLUMPING TRANSPORTATION STOCKS SOARED ON THE DROP IN OIL PRICES WITH THE DOW JONES TRANSPORTATION AVERAGE MOVING INTO RECORD TERRITORY ONLY TO SLIP BACK TRANSPORTS ENDED WITH A GAIN OF 1710 TO 175699 SHY OF ITS RECORD OF 175998 EVEN THOUGH I'M EXPECTING THE STOCK MARKET TO WORK LOWER OVER THE NEXT FEW WEEKS I'M STILL SURPRISED BY HOW WEAK IT ACTED TODAY WITH THE LOWER OIL PRICES MR REVIS SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX DROPPED 183 TO 10570 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 270051920 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1067 ISSUES FELL AND 1053 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED LESS THAN 1/4 POINT OR LESS THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 623 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17080 MARKS AND 10920 YEN COMPARED WITH 17136 MARKS AND 10888 YEN FRIDAY 9311300071 931130 NOEL TO DISTRIBUTE SYLVAN SHARES NEW YORK NOEL GROUP INC SAID IT WILL DISTRIBUTE ITS SHARES OF SYLVAN FOODS HOLDINGS INC AT A RATIO OF 0069448 SHARES OF SYLVAN FOR EACH NOEL COMMON SHARE PURCHASERS OF NOEL COMMON STOCK ON OR AFTER NOV 29 WILL NOT BE ENTITLED TO RECEIVE THE SYLVAN SHARES THE PAYMENT DATE IS DEC 6 ALTHOUGH THE SHARES AREN'T EXPECTED TO BE PHYSICALLY DELIVERED UNTIL THE WEEK OF DEC 20 SYLVAN FOODS IS A PRODUCER OF MUSHROOM SPAWN AND MARKETER OF FRESH MUSHROOMS NOEL IS A HOLDING COMPANY WITH INTERESTS IN OTHER PRIVATE AND PUBLIC COMPANIES 9311300070 931130 SONAT BUYS TEXAS PROPERTIES BIRMINGHAM ALA SONAT INC SAID ITS SONAT EXPLORATION DIVISION PURCHASED 87 OIL AND GAS PROPERTIES IN SOUTH TEXAS FOR ABOUT 62 MILLION SONAT AN ENERGY COMPANY INVOLVED IN EXPLORATION PRODUCTION AND MARKETING OF OIL AND GAS BOUGHT THE PROPERTIES FROM TRIC RESOURCES INC OF HOUSTON 9311300069 931130 ONTARIO TARGETS CIGARETTE SMUGGLERS WITH TOUGHER PENALTIES INCLUDING JAIL BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE ONTARIO GOVERNMENT HAS TOUGHENED PENALTIES AND INTRODUCED JAIL TERMS FOR THOSE CAUGHT SELLING SMUGGLED CIGARETTES WITHIN THE PROVINCE THE CASHSTRAPPED PROVINCE CALCULATES IT NOW LOSES ABOUT 200 MILLION CANADIAN DOLLARS US1504 MILLION IN TAX REVENUE AS A RESULT OF THE SALE OF SMUGGLED CIGARETTES THE GOVERNMENT HOPES TO STEM THOSE LOSSES BY HITTING SMALL VENDORS WITH FINES RANGING BETWEEN C300 US226 AND C10000 AND IMPOSING A MAXIMUM JAIL TERM OF TWO YEARS ON THOSE CAUGHT SELLING MORE THAN 50 CARTONS OF SMUGGLED CIGARETTES THESE MEASURES GIVE THE PROVINCE GREATER POWER TO POLICE THE TRADE IN CIGARETTES ON WHICH NO PROVINCIAL TAX IS PAID SAID FLOYD LAUGHREN ONTARIO'S FINANCE MINISTER BUT HE NOTED THAT SMUGGLING THE CIGARETTES AS OPPOSED TO SELLING THEM IS ACTUALLY A FEDERAL OFFENSE A SPOKESMAN FOR THE PROVINCIAL GOVERNMENT SAID THAT UNTIL NOW PROVINCIAL LAW ENFORCEMENT AGENCIES HAVEN'T HAD THE AUTHORITY TO TAKE MEASURES SUCH AS STOPPING VEHICLES SUSPECTED OF TRANSPORTING SMUGGLED CIGARETTES HE SAID THAT NOW ONTARIO POLICE WILL BE ABLE TO PULL OVER PRIVATE CARS OR VANS THEY SUSPECT OF CARRYING CONTRABAND PARTICULARLY AT BORDER CROSSINGS AND THE EXITS TO INDIAN RESERVES POLICE FORCES BELIEVE THAT THE RESERVES ARE THE FOCUS OF A GREAT DEAL OF CIGARETTE SMUGGLING UNTIL NOW THERE HAD BEEN NO JAIL TERMS FOR THOSE CAUGHT SELLING SMUGGLED CIGARETTES AND VENDORS WITH FEWER THAN 50 CARTONS IN THEIR POSSESSION FACED NO CHARGES A LARGE PERCENTAGE OF THE CIGARETTES THAT ARE SMUGGLED INTO ONTARIO ARE PRODUCED IN CANADA AND SOLD DUTYFREE FOR EXPORT INTO THE US ABOUT 60 OF SMUGGLED CIGARETTES ARE CANADIAN BRANDS WITH US PRODUCTS REPRESENTING A GROWING PROPORTION SOME US BRANDS SUCH AS CANADIAN EXPRESS AND CANADA GOOSE ARE DESIGNED SOLELY FOR THE CONTRABAND MARKET INDUSTRY SOURCES SAID ROBERT PARKER PRESIDENT OF THE CANADIAN TOBACCO MANUFACTURERS' COUNCIL AN INDUSTRY GROUP SAID THE TOUGHER PENALTIES INTRODUCED BY THE PROVINCE WON'T SOLVE THE CAUSE OF SMUGGLING THE PROFIT MOTIVE A CARTON OF SMUGGLED CIGARETTES SELLS FOR ABOUT C20 US15 IN ONTARIO WHEREAS HEFTY TAXES PUSH THE PRICE OF A CARTON SOLD AT LEGAL OUTLETS TO AS MUCH AS C45 THAT DIFFERENTIAL HAS SENT MORE CANADIANS TO THE BLACK MARKET IN SEARCH OF THEIR CIGARETTES IN RECENT YEARS MR PARKER'S ASSOCIATION ESTIMATES THAT ABOUT C35 BILLION OF RETAIL SALES ACROSS CANADA WERE LOST TO CONTRABAND IN 1992 AND THAT USMADE CIGARETTES ACCOUNT FOR A GROWING PROPORTION OF THOSE BLACKMARKET GOODS WE THINK REDUCING OR ELIMINATING TAXES IS THE ONLY WAY TO GET AT THE ROOT CAUSE OF THIS PROBLEM MR PARKER SAID THERE'S NOT EVEN ANY SIGN THAT THE POLICE ARE CATCHING MORE THAN A FRACTION OF THE PEOPLE RESPONSIBLE SO THESE STEPS MIGHT NOT HAVE ANY IMPACT THE MEASURES TAKE EFFECT IMMEDIATELY THE PROVINCE SAID 9311300068 931130 MOTOROLA UNIT RECEIVES CONTRACT MISSISSAUGA ONTARIO MOTOROLA INFORMATION SYSTEMS A UNIT OF MOTOROLA INC SAID IT RECEIVED A CONTRACT FROM BANK OF MONTREAL VALUED AT 42 MILLION CANADIAN DOLLARS US32 MILLION THE CONTRACT IS FOR INTEGRATION OF THE BANK'S AUTOMATEDMACHINE NETWORK WITH ITS BRANCHOFFICE NETWORK 9311300067 931130 AMERICAN GENERAL TO SELL UNITS TAKE A NONCASH CHARGE BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN GENERAL CORP PLANS TO SELL TWO LIFEINSURANCE UNITS AND TAKE A 300 MILLION NONCASH CHARGE THAT WILL RESULT IN A FOURTHQUARTER LOSS FOR THE BIG INSURANCE AND FINANCIALSERVICES COMPANY THE STEPS WHICH WERE ANNOUNCED AFTER THE CLOSE OF STOCK TRADING YESTERDAY WERE THE HOUSTONBASED COMPANY'S FIRST MAJOR MOVES SINCE ITS LATEST MANAGEMENT SHIFT YESTERDAY'S ACTIONS WERE PROMPTED BY A COMPANY REVIEW OF THE SEGMENT OF ITS LIFEINSURANCE BUSINESS IN WHICH IT SELLS POLICIES THROUGH INDEPENDENT AGENTS THE COMPANY HAD CONSIDERED GETTING OUT OF THAT BUSINESS ALTOGETHER PERHAPS THROUGH AN INITIAL PUBLIC OFFERING AS PART OF A STRATEGY TO CONCENTRATE ON SELLING INSURANCE THROUGH AMERICAN GENERAL EMPLOYEES BUT THE COMPANY SAID YESTERDAY THAT IT DECIDED TO RETAIN THE BUSINESS EXCEPT FOR TWO SMALL UNITS AMERICANAMICABLE LIFE OF WACO TEXAS AND FINANCIAL LIFE OF TORONTO THEY'RE NOT AS PROFITABLE AS WE'D LIKE SAID JAMES R TUERFF PRESIDENT OF AMERICAN GENERAL AFTER LEARNING FROM INVESTMENT ADVISERS WHAT THE ENTIRE INDEPENDENTAGENT SEGMENT WOULD HAVE FETCHED IN THE STOCK MARKET THE COMPANY DECIDED TO WRITE DOWN THE SEGMENT'S ACQUISITIONRELATED GOODWILL BY 300 MILLION COMPANY OFFICIALS SAID THE NONCASH CHARGE IS INTENDED TO BRING THE SEGMENT'S BOOK VALUE IN LINE WITH ITS MARKET VALUE AMERICAN GENERAL DIDN'T SAY HOW LARGE A FOURTHQUARTER LOSS IT EXPECTS IN 1992'S FOURTH QUARTER THE COMPANY EARNED 1337 MILLION OR 123 A SHARE YESTERDAY'S MOVES CAME ABOUT TWO MONTHS AFTER MICHAEL J POULOS RETIRED UNEXPECTEDLY AS VICE CHAIRMAN OF AMERICAN GENERAL BECOMING THE SECOND TOP EXECUTIVE TO LEAVE THE COMPANY IN A FIVEWEEK PERIOD ROBERT M DEVLIN SUCCEEDED MR POULOS JOINING HAROLD S HOOK CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND MR TUERFF IN THE OFFICE OF THE CHAIRMAN IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AMERICAN GENERAL CLOSED AT 2775 DOWN 25 CENTS 9311300066 931130 INTERNATIONAL SOUTH KOREA'S INDUSTRIAL OUTPUT SEOUL SOUTH KOREA THE NATION'S INDUSTRIAL OUTPUT ROSE A HEALTHY 41 IN OCTOBER FROM A YEAR EARLIER BOLSTERING THE EXPECTATIONS THAT THE ECONOMY IS ON TRACK FOR A RECOVERY THE NATIONAL STATISTICAL OFFICE SAID THE STATISTICS OFFICE ATTRIBUTED THE OCTOBER INCREASE TO BRISK PRODUCTION IN HEAVY AND PETROCHEMICAL INDUSTRIES DESPITE A SLACKENING LIGHT INDUSTRY SECTOR 9311300065 931130 WORLD MARKETS STOCKS RISE IN LONDON SOAR IN TAIPEI ON RESULTS OF ELECTIONS BUT DROP ON ASIAN PACIFIC BOURSES A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES CLIMBED SHARPLY EVEN AFTER LASTMINUTE PROFITTAKING CUT SOME OF THE DAY'S GAINS LED BY ACQUISITION MOVES IN THE TELEVISION SECTOR IN TAIPEI STOCKS SKYROCKETED 53 IN REACTION TO THE TAIWAN RULING PARTY'S SURPRISE VICTORY IN WEEKEND ELECTIONS VIEWED AS POSITIVE FOR THE ECONOMY BUT MOST ASIAN AND PACIFIC MARKETS FELL PARTLY UNDER PRESSURE FROM THE TOKYO EXCHANGE'S CONTINUING PLUNGE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10570 DOWN 183 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS HOUSEHOLD PRODUCTS/NONDURABLES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11430 UP 211 OR 19 WITH PROCTER & GAMBLE OF THE US POSTING A 34 GAIN IN ITS LOCAL CURRENCY MAJOR BANK STOCKS TRAILED AT 10118 DOWN 735 OR 68 WITH SUMITOMO BANK OF JAPAN SLIDING 14 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 244 POINTS TO 31358 AFTER RETREATING FROM THE INTRADAY HIGH OF 31441 THE FT 30STOCK INDEX ADVANCED 265 POINTS OR 11 TO 23958 VOLUME WAS 6839 MILLION SHARES COMPARED WITH 6966 MILLION SHARES IN THE PREVIOUS SESSION TAKEOVER FEVER IN BRITAIN'S TELEVISION SECTOR WAS LARGELY RESPONSIBLE FOR THE MARKET'S STRENGTH AFTER AN ACQUISITION PROPOSAL FUELED ALREADYSTRONG EXPECTATIONS FOR MERGERS IN THE INDUSTRY UNDER RECENTLY RELAXED GOVERNMENT REGULATIONS TODAY'S TRADING WAS EXPECTED TO SLOW TO A TRICKLE AHEAD OF THE UNVEILING OF THE BRITISH BUDGET MEANWHILE YESTERDAY NEW FAITH IN CONSUMER SPENDING SPARKED BUYING IN THE RETAILING AND BREWING SECTORS AS INVESTORS PUT ASIDE FEARS THAT BIG TAX INCREASES WOULD BE ANNOUNCED IN THE BUDGET SPARING CONSUMERS AND PENSIONFUND INVESTORS IN TAIPEI STOCKS SOARED TO A FIVEMONTH HIGH IN ACTIVE DEALINGS IN RESPONSE TO THE WIN BY TAIWAN'S GOVERNING PARTY THE KUOMINTANG IN LOCAL ELECTIONS SATURDAY GAINS WERE REGISTERED ACROSS THE BOARD LED BY A 64 JUMP IN PAPER ISSUES FOLLOWED BY A 61 ADVANCE IN BOTH THE ELECTRONICS AND PLASTICS SECTORS ANALYSTS SAW THE BEGINNING OF AN UPWARD TREND SAYING POLITICAL STABILITY WILL LEAD TO STABLE ECONOMIC GROWTH THE KUOMINTANG OR KMT TOOK 15 OF 23 MAYORAL AND MAGISTRATE SEATS AT STAKE AT THE POLLS WHILE THE OPPOSITION DEMOCRATIC PROGRESSIVE PARTY WON SIX SEATS AND INDEPENDENTS WON TWO TAIWAN'S POLITICAL UNCERTAINTIES HAVE LASTED MUCH OF THIS YEAR STEMMING FROM SHARP LOSSES BY THE KMT IN LEGISLATIVE ELECTIONS LATE LAST YEAR TO A PARTY POWER STRUGGLE AND LEADERSHIP CHANGE IN FEBRUARY IN THE LATEST ELECTION THOUGH THE KMT'S POPULAR VOTE FELL BELOW 50 FOR THE FIRST TIME THE RESULTS SURPRISED INVESTORS WHO HAD FEARED A SETBACK THAT HAD LED TO SELLING OF STOCKS IN RECENT WEEKS FOR EXAMPLE INVESTMENT TRUST COMPANIES HAD UNLOADED BIG POSITIONS AND WERE TRYING TO GET BACK INTO PLAY QUICKLY SUCH BUYING WAS EXPECTED TO SUSTAIN A BUYING TREND FOR A FEW DAYS IN MEXICO CITY SHARES RETREATED FROM RECORD LEVELS ON PROFITTAKING WITH THE MARKET APPEARING FULLY PRICED IN SOME SECTORS BROKERAGE FIRMS ISSUED A ROUND OF SELL RECOMMENDATIONS FOR SOME OF THE MORE EXPENSIVE ISSUES INVESTORS' REACTION WAS NEUTRAL TO THE RULING PARTY'S NOMINEE FOR PRESIDENT ON EXPECTATIONS OF A CONTINUATION OF SOCIAL AND ECONOMIC REFORMS TEMPERED BY SOME DISAPPOINTMENT THAT ANOTHER CANDIDATE RESPECTED AMONG FOREIGN INVESTORS WASN'T CHOSEN IN FRANKFURT STOCK PRICES FINISHED MIXED WITH TOKYO'S DIVE AND LOSSES ON ASIAN AND PACIFIC BOURSES ADDING TO CONFUSION ABOUT THE GERMAN EXCHANGE'S COURSE FOR THE REMAINDER OF THE YEAR THE DAX 30STOCK SLIPPED 381 POINTS TO 204343 AGAIN TRADING WITHIN A NARROW RANGE LOSING ISSUES OUTPACED WINNING ISSUES 218 INVESTORS ALSO WERE UNCERTAIN ABOUT WHETHER THE GERMAN CENTRAL BANK WOULD CUT INTEREST RATES AT ITS NEXT MEETING THURSDAY IN PARIS EQUITIES WEAKENED SLIGHTLY AFTER BOUNCING UP FROM LOWS THE MARKET WAS RELIEVED THAT TOKYO'S SHARP LOSSES DIDN'T SPREAD TO EUROPEAN BOURSES THOUGH THE PARIS CORRECTION FOLLOWED LAST WEEK'S SHARP GAINS ON HOPES FOR INTERESTRATE REDUCTIONS SELLING WAS MUTED IN AMSTERDAM PRICES WERE MIXED BUT HAD A WEAK UNDERTONE BECAUSE OF LOWER PRICES FOR OIL AND RELATED STOCKS THOUGH AIRLINES GAINED ON EXPECTATIONS OF FALLING FUEL COSTS IN MILAN SHARES ROSE IN LIGHT ACTIVITY AS MANY INVESTORS AWAITED PASSAGE OF ITALY'S 1994 BUDGET AND RUNOFF ELECTIONS SUNDAY IN SEVERAL CITIES IN MADRID PRICES FELL DRAGGED DOWN BY STRONG SELLING IN THE BANKING SECTOR BUT TURNOVER WAS THIN IN STOCKHOLM EQUITIES TUMBLED THOUGH THE SESSION WAS LACKLUSTER US INVESTORS DIDN'T UNLOAD SWEDISH HOLDINGS AS THE CURRENT STRONG DOLLAR WOULD REDUCE GAINS ON SUCH SALES IN BRUSSELS SHARES FELL IN THIN DEALINGS AS INVESTORS STAYED ON THE SIDELINES AHEAD OF TALKS THIS WEEK BETWEEN THE BELGIAN GOVERNMENT AND UNIONS ON AN AUSTERITY PACKAGE AIMED AT IMPROVING COMPETITIVENESS AND CUTTING THE PUBLIC DEFICIT IN SYDNEY THOUGH STOCKS RECOVERED SOME EARLY LOSSES THE MARKET STILL CLOSED WITH A 16 DROP FOLLOWING THE PLUNGE IN TOKYO EQUITIES AND STRONG SELLING OF BLUE CHIPS ESPECIALLY ENERGY ISSUES BECAUSE LOWER OIL PRICES IN LONDON FRIDAY DEPRESSED OIL STOCKS EXPOSED TO THE SECTOR IN AUSTRALIA THE SYDNEY MARKET HAD LITTLE REACTION TO OCTOBER'S CURRENTACCOUNT DATA WHICH WERE WITHIN EXPECTATIONS IN HONG KONG SHARES SLUMPED 28 ON AN ESCALATING SINOBRITISH ROW AND THE NOSEDIVE IN TOKYO SHARES INVESTORS INITIALLY DUMPED STOCKS ON JITTERS ABOUT AN APPARENT COLLAPSE OF WEEKEND TALKS BETWEEN CHINA AND BRITAIN ON THE BRITISH COLONY'S POLITICAL FUTURE AFTER 17 ROUNDS OF DISCUSSIONS SINCE APRIL NEWS REPORTS SAID HONG KONG'S LEGISLATURE COULD RATIFY SOME ELECTION ARRANGEMENTS UNDER BRITISH RULE WITHOUT ENDORSEMENT BY CHINA WHICH TAKES CONTROL OF THE COLONY IN 1997 THIS CAUSED WORRIES ABOUT POSSIBLE DELAYS IN CONSTRUCTION PROJECTS SUCH AS THE NEW AIRPORT AND CONTAINER PORT IN MANILA PRICES TUMBLED 18 IN HEAVY VOLUME HURT BY THE WEAKNESS IN OVERSEAS MARKETS SUCH AS TOKYO AND HONG KONG IN SINGAPORE STOCKS CLOSED BROADLY LOWER IN THIN WARY DEALINGS THOUGH THE TOKYO PLUNGE DID LITTLE DAMAGE TO SENTIMENT RATHER INVESTORS WERE AWAITING ANY REACTION YESTERDAY BY THE NEW YORK MARKET IN SEOUL STOCKS EDGED DOWN THOUGH GAINING ISSUES LED DECLINERS IN A CONTINUING CORRECTION 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 9311300064 931130 WHO'S NEWS AON CORP AON CORP CHICAGO RICHARD M RAVIN 50 YEARS OLD PRESIDENT OF AON'S COMBINED INSURANCE CO OF AMERICA UNIT WAS NAMED TO THE ADDITIONAL POSTS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUCCEEDING PATRICK G RYAN WHO REMAINS CHAIRMAN AND CEO OF THE PARENT COMPANY JOHN E JOHNSTON 58 WAS ELECTED VICE CHAIRMAN OF THE COMBINED UNIT 9311300063 931130 LEISURE & ARTS BOOKSHELF COULDN'T WAIT FOR DEATH BY MANUELA HOELTERHOFF AT FIRST THEY SEEMED TO GET ON WITH EACH OTHER LADY ANNE BOTELER AND HER HUSBAND SIR OLIVER BUT THEN AFTER SOME EIGHT UNEVENTFUL YEARS RELATIONS FRAYED HE THREW HIS CHAMBER POT AT HER HE BEAT AND KICKED HER AND ONE UNPLEASANT MORNING WAS SEEN DRAGGING HER AROUND THE HOUSE BY HER SMOCK I HOPE THE CHILD YOU BEAR WILL BE A RAT HE SCREAMED SIR OLIVER HAD COME TO HATE HIS WIFE NOW WHAT HOW COULD HE GET RID OF HER WITHOUT KILLING HER THOUGH HE FAVORED THIS OPTION HOW COULD LADY ANNE PROTECT HERSELF AND THE CHILDREN HE PROMISED TO DROP DOWN THE STAIRWELL WHEN NO ONE WAS LOOKING BEFORE BOTELER VS BOTELER FINALLY WORKED ITS WAY THROUGH SEVERAL COURTS THREE YEARS HAD PASSED AND ENOUGH DOCUMENTS HAD BEEN GENERATED TO PROVIDE LAWRENCE STONE WITH ANOTHER JUICY CHAPTER IN HIS NEW VOLUME ON MATRIMONIAL DISASTERS BROKEN LIVES SEPARATION AND DIVORCE IN ENGLAND 16601857 OXFORD UNIVERSITY PRESS 355 PAGES 35 EVEN RIDDING YOURSELF OF A CHAMBERPOT FLINGING LUNATIC TOOK AN INCREDIBLE AMOUNT OF MONEY AND PERSEVERANCE IN THE DAYS BEFORE PARLIAMENT FINALLY ESTABLISHED THE RIGHT TO DIVORCE AND REMARRIAGE BROKEN LIVES COMPLETES THE MASTERFUL TRILOGY MR STONE BEGAN WITH ROAD TO DIVORCE AND UNCERTAIN UNIONS AND REMINDS US THAT THERE ARE FEW THINGS MORE RIVETING TO OBSERVE THAN PEOPLE BEHAVING AT THEIR ABSOLUTE WORST AND NOTHING LIKE AN ACRIMONIOUS DIVORCE TO MAKE THEM DO SO IN ALL THERE ARE 12 CASE STUDIES RANGING IN TIME FROM THE BOTELERS WHO BATTLED IN THE LATE 17TH CENTURY TO THE EPIC STRUGGLE BETWEEN THE WESTMEATHS WHICH LEFT EMILY WESTMEATH A SICK WRECK CHURNING OUT PROTOFEMINIST PROPAGANDA IN THE EARLY YEARS OF VICTORIA IN THE PAGES IN BETWEEN COUPLES FIGHT OVER CHILDREN SILVER COUNTRY HOUSES DEBTS AND DOWRIES THEY COMMIT ADULTERY AND BIGAMY RAIL AGAINST EACH OTHER IN BILIOUS BROADSHEETS THROW CANDLESTICKS AND CHAIRS BEFORE MIDDLETON VS MIDDLETON IS HISTORY SO ARE MRS MIDDLETON'S FAVORITE DOG AND HORSE MOST OF THE MATERIAL COMES FROM THE ARCHIVES OF ECCLESIASTICAL COURTS WHERE THE LITIGANTS BATTLED WHILE SCRIBES TOOK VOLUMINOUS NOTES CURIOUSLY GETTING UNHITCHED WAS CONSIDERABLY MORE DIFFICULT IN ENGLAND THAN MOST OTHER EUROPEAN COUNTRIES WHICH HAD LONG ABANDONED CANON LAW INVARIABLY COUPLES SEEKING SEPARATION OR DIVORCE FOUND THEMSELVES DUELING IN TWO DIFFERENT COURTS OFTEN SIMULTANEOUSLY THE ECCLESIASTICAL COURTS WHICH ADMINISTERED CANON LAW AND THE SECULAR COURTS WHICH HAD JURISDICTION OVER THE DISPOSAL OF PROPERTY TRUSTS AND CONTRACTS INVARIABLY TOO THE COUPLES WHO APPEAR IN MR STONE'S BOOK WERE RICH SINCE ONLY THE WEALTHY COULD AFFORD TO SURVIVE A NIGHTMARISH BUREAUCRACY INTENDED TO EXTRACT MAXIMUM PAIN AND COSTS FROM COUPLES WHO WERE DISTURBING THE SOCIAL ORDER WITH THEIR PRIVATE PROBLEMS THE POOR RESORTED TO SIMPLER MEANS MEN OFTEN JUST DISAPPEARED INTO THE NIGHT LEAVING BEHIND DESTITUTE WIVES IN MORE AMICABLE SEPARATIONS COUPLES TRIED SETTING UP DIFFERENT HOUSEHOLDS SIGNING PAPERS THAT SEVERED FINANCIAL OBLIGATIONS OR ENGAGING IN THE PICTURESQUE PRACTICE KNOWN AS WIFE SELLING THE HUSBAND WOULD WALK THE WIFE TO THE MARKETPLACE WITH A HALTER AROUND HER NECK AND ANNOUNCE THAT FROM NOW ON HER DEBTS WERE THE RESPONSIBILITY OF HER LOVER THE RICHNESS OF THESE ARCHIVES IS ASTONISHING ONE CASE PRODUCED HALF A MILLION WORDS AS COURT CLERKS ASSIDUOUSLY RECORDED THE DEPOSITIONS AND TESTIMONY OF LITIGANTS LAWYERS NEIGHBORS AND THE HORDES OF DOMESTIC SERVANTS WHO USUALLY TOOK SIDES AND BRIBES THE WITNESS IS SOBER NOW NOTES ONE LAWYER LACONICALLY AS HE TAKES DOWN A STATEMENT FROM A FLOOZY EXPLAINING SHE WAS WAY TOO DRUNK TO IDENTIFY THE FURNITURE IN A CERTAIN BEDROOM IN MR STONE'S LIVELY RETELLING MANY OF THE CASES READ LIKE LURID BODICERIPPERS WRITTEN BY DANIELLA DEFOE HE THREATENED TO SLIT ONE OF HER LEGS TO PUT THROUGH THE OTHER AND KEEP HER AT HOME' NOTES THE FAT FILE DOCUMENTING THE WAR KNOWN AS DINELY VS DINELY IN WHICH BOTH PARTIES COMMITTED ADULTERY AND SIR JOHN SWAM NUDE WITH A WITCH BEFORE HIS BROTHER SAMUEL STRANGLED HIM TO DEATH FOR HIS INHERITANCE FOR SHEER ASTONISHMENT THOUGH NOTHING RIVALS CALVERT VS CALVERT WHICH CULMINATES IN THE BIZARRE MATRIMONIAL ADVENTURES OF AN AGING SWAIN WHO NOT ONLY SLEEPS WITH MRS CALVERT BUT MARRIES HER DUCHESS GRANDMOTHER AND A PROSTITUTE IMPERSONATING A WEALTHY WIDOW AT THE SAME TIME OF COURSE THOUGH THE FEELINGS OF FURY RESENTMENT LUST AND LOATHING THAT COURSE THROUGH THESE CASES ARE NOT PARTICULAR TO ANY PERIOD THE INTENSITY OF THE LITIGANTS OFTEN CASTS AN INTRIGUING LIGHT ON CHANGING CUSTOMS AFTER ALL CHAPTER 11 IS A LOT EASIER TO SURVIVE THAN A FEW YEARS IN A RATRIDDEN JAIL SO ARGUMENTS OVER DEBT OFTEN TOOK ON A RABID EDGE AND OLDFASHIONED CONCEPTS OF HONOR COMBINED WITH SLOWLY EVOLVING NOTIONS OF WOMEN'S ROLES OFTEN DROVE JEALOUS MEN INTO SUCH DEMENTED HATE THAT THEY NEVER RECOVERED WHO GAINED MR STONE ASKS SADLY LOOKING OVER THE TRAGEDY THAT WAS MIDDLETON VS MIDDLETON BY THE TIME WILLIAM MIDDLETON HAD COMPLETED HIS FANATICAL VENDETTA IN 1796 HE WAS A BROKENHEARTED RECLUSE HE HAD KILLED HIS WIFE'S FAVORITE DOG AND HORSE DESTROYED HER REPUTATION BY PUBLICLY EXPOSING HER AS AN ADULTERESS WITH A STABLE BOY CLOSED UP HIS FAMILY SEAT DISCHARGED HIS SERVANTS AND SENT HIS CHILDREN OFF TO BOARDING SCHOOL BETWEEN THEM HE AND CLARA LOUISA CREATED A DESERT OF BROKEN LIVES 9311300062 931130 WHO'S NEWS RYLAND NAMES DREIER OF KAUFMAN & BROAD AS CEO AND PRESIDENT COLUMBIA MD HOMEBUILDING AND MORTGAGEFINANCE COMPANY RYLAND GROUP INC NAMED R CHAD DREIER 46 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER ENDING A FOURMONTH SEARCH MR DREIER HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF HOMEBUILDER KAUFMAN & BROAD HOME CORP LOS ANGELES AND CHAIRMAN OF ITS HOME FINANCING UNIT KAUFMAN & BROAD MORTGAGE CO MR DREIER'S SELECTION FOLLOWS THE AUG 1 RESIGNATION OF ROGER W SCHIPKE RYLAND'S FORMER CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT MR SCHIPKE LEFT RYLAND AFTER THREE YEARS WITH THE COMPANY TO BECOME CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SUNBEAM OSTER CO A CONSUMER APPLIANCES CONCERN MR DREIER WAS ALSO ELECTED A DIRECTOR FILLING A VACANCY ON THE 10MEMBER BOARD ANDRE W BREWSTER CURRENTLY CHAIRMAN OF RYLAND'S BOARD HAD SERVED AS INTERIM CHIEF EXECUTIVE OFFICER OF THE COMPANY FOLLOWING MR SCHIPKE'S DEPARTURE 9311300061 931130 BUSINESS BRIEF PACIFIC TELESIS GROUP LAWSUIT SEEKS TO ESTABLISH RIGHT TO VIDEO PROGRAMS PACIFIC TELESIS GROUP FILED A LAWSUIT TO ESTABLISH ITS RIGHTS TO PROVIDE VIDEO PROGRAMMING TO CUSTOMERS IN ITS TELEPHONE SERVICE AREA WHICH IS CURRENTLY PROHIBITED BY THE FEDERAL CABLE ACT THE SUIT FILED IN THE US DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA IN SAN JOSE CHALLENGES THE CONSTITUTIONALITY OF THE ACT'S PROHIBITION ON FIRST AMENDMENT GROUNDS PACIFIC BELL BASED IN SAN FRANCISCO RECENTLY SAID IT PLANS TO BUILD A VIDEO SUPERHIGHWAY TO HOMES IN ITS SERVICE AREA BY SPENDING ABOUT 16 BILLION OVER SEVEN YEARS PACIFIC BELL'S MOVE FOLLOWS A RECENT DECISION BY A FEDERAL DISTRICT COURT IN VIRGINIA TO ALLOW BELL ATLANTIC CORP TO OFFER TELEVISION PROGRAMMING IN ITS SERVICE AREA ALTHOUGH THE RULING ONLY APPLIED TO BELL ATLANTIC THE DECISION WAS RECENTLY APPEALED BY THE JUSTICE DEPARTMENT 9311300060 931130 LEISURE & ARTS TOP 10 SINGLES / ALBUMS COPYRIGHT 1993 BILLBOARD/BROADCAST DATA SYSTEMS/SOUNDSCAN INC DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9311300059 931130 BUSINESS BRIEF NORTHROP CORP NEXT YEAR'S SALES EXPECTED TO FALL BELOW 1993 RESULTS NORTHROP CORP LOS ANGELES SAID ITS 1994 SALES WILL FALL 15 BELOW THE 52 BILLION EXPECTED THIS YEAR BUT DIDN'T SAY WHETHER IT EXPECTS A DECLINE IN EARNINGS IN THE ANNOUNCEMENT WHICH FOLLOWED AN ADDRESS TO ANALYSTS BY CHAIRMAN KENT KRESA THE COMPANY RULED OUT A FALL OF 15 OR MORE IN 1994 EARNINGS NORTHROP SAID IT EXPECTS CASH FLOW TO BE BETTER THAN PREVIOUSLY PLANNED AND EXPECTS STEADILY IMPROVING CASH FLOWS FOR THE NEXT SEVERAL YEARS NORTHROP STOCK CLOSED AT 37875 UP 1 OR 27 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE NORTHROP'S REVENUE IS DECLINING AS IT FACES REDUCED ORDERS FOR FUSELAGE SECTIONS FOR THE BOEING 747 JUMBO JET AND AS PRODUCTION WINDS DOWN FOR ITS B2 STEALTH BOMBER THE COMPANY EXPECTS INCREASED SALES FROM ITS ROLE AS THE MAJOR SUBCONTRACTOR IN PRODUCING THE LATEST SERIES OF THE MCDONNELL DOUGLAS F/A18 NAVAL ATTACKFIGHTER JET 9311300058 931130 LAW LEGAL BEAT PREVIOUS VERDICTS IN KING CASE COULD PLAY BIG ROLE IN CIVIL SUIT BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL WILL THE JURY THAT HEARS RODNEY KING'S CIVIL SUIT AGAINST THE LOS ANGELES POLICE BE BOUND TO AN EARLIER JURY'S CONCLUSION THAT TWO OF THE OFFICERS WHO BEAT HIM USED EXCESSIVE FORCE THAT'S THE ISSUE THAT'S SHAPING UP AS THE MOST IMPORTANT AS LAWYERS PREPARE FOR YET ANOTHER COURTROOM SHOWDOWN OVER THE MARCH 1991 POLICE BEATING OF THE BLACK MOTORIST MR KING'S LAWYERS ARE EXPECTED TO ARGUE IN PRETRIAL PAPERS THAT THE OFFICERS WHO WERE CONVICTED OF CIVILRIGHTS VIOLATIONS LAST APRIL ARE BARRED UNDER A DOCTRINE CALLED COLLATERAL ESTOPPEL FROM DENYING IN THE CIVIL CASE THAT THEY USED EXCESSIVE FORCE IF FORMER POLICE SGT STACEY C KOON AND FORMER OFFICER LAURENCE M POWELL CAN'T CONTEST THAT CHARGE THEY WILL BE AT A SHARP DISADVANTAGE IN FIGHTING THE 95 MILLION LAWSUIT MESSRS KOON AND POWELL ARE SERVING 2 1/2YEAR PRISON SENTENCES AFTER THEIR FEDERAL CIVILRIGHTS CONVICTIONS OTHER DEFENDANTS IN THE CIVIL CASE WHICH IS SCHEDULED FOR TRIAL ON MARCH 22 INCLUDE FORMER POLICE CHIEF DARYL F GATES THE CITY OF LOS ANGELES ITSELF TWO OTHER POLICE OFFICERS AND THE POLICE DEPARTMENT COLLATERAL ESTOPPEL PROVIDES IN ESSENCE THAT IF A PARTY TO A LEGAL ACTION HAD A FAIR CHANCE TO PRESENT ITS SIDE OF AN ISSUE IN ONE COURT CASE AND LOST IT IS BARRED OR ESTOPPED FROM INTRODUCING ANY EVIDENCE THAT MAKES ITS CONTENTION ANEW IN A LATER CIVIL CASE BASED ON THE SAME CIRCUMSTANCES THE THEORY BEHIND THE DOCTRINE IS THAT IT WOULD BE INEFFICIENT FOR COURTS TO RECONSIDER MATTERS THAT HAVE ALREADY BEEN RESOLVED BY OTHER COMPETENT COURTS BUT A NUMBER OF FAIRNESS RULES LIMIT THE APPLICATION OF THE DOCTRINE AMONG OTHER RESTRICTIONS ESTOPPEL IS ALLOWED ONLY WHEN THE PRIOR RULING SETTLES PRECISELY THE SAME ISSUE CONCERNING THE SAME PEOPLE AS THE NEW CASE THE KING CIVIL CASE IS MORE COMPLICATED THAN MOST BECAUSE THERE ARE TWO PRIOR CASES TO CONSIDER A STATECOURT PROSECUTION IN 1992 IN WHICH THE OFFICERS WERE ACQUITTED OF ASSAULTRELATED CHARGES AND THE FEDERAL CASE EARLIER THIS YEAR WHEN TWO DEFENDANTS WERE CONVICTED OF THE CIVIL RIGHTS VIOLATIONS STEMMING FROM THE SAME BEATING BUT THE 1992 FINDING THAT EXCESSIVE FORCE WASN'T USED DOESN'T BAR MR KING FROM ARGUING THE CONTRARY BECAUSE UNDER THE COLLATERALESTOPPEL DOCTRINE ONLY PARTIES TO A CASE ARE AFFECTED MR KING AS THE VICTIM WASN'T TECHNICALLY A PARTY TO THE 1992 CRIMINAL CASE IN SIMI VALLEY WHICH SPARKED THE LOS ANGELES RIOTS SIMILARLY FORMER OFFICERS THEODORE J BRISENO AND TIMOTHY E WIND WHO ARE ALSO DEFENDANTS IN THE CIVIL CASE WILL GAIN LITTLE HELP IN THE CIVIL CASE FROM THEIR ACQUITTALS IN BOTH CRIMINAL TRIALS ACQUITTALS UNLIKE CONVICTIONS HAVE PRACTICALLY NO ESTOPPEL VALUE LEGAL SPECIALISTS SAY EXPERTS ALSO SAY THAT PRIOR TO THE TRIAL DATE THE PARTIES WILL BE ORDERED TO DRAFT LEGAL ARGUMENTS ON WHETHER AND TO WHAT EXTENT THE PRIOR KING LITIGATION SHOULD BE USED IN THE CIVIL CASE UNDER SOCALLED RELATEDCASE RULES USED IN FEDERAL COURT JUDGE JOHN G DAVIES WHO PRESIDED OVER THE FEDERAL CRIMINAL TRIAL ALSO WILL HEAR MR KING'S CIVIL CASE LAYN R PHILLIPS A FORMER FEDERAL JUDGE AND NOW A LOS ANGELES CRIMINAL DEFENSE LAWYER SAID THAT IN ADDITION TO THE BASIC ESTOPPEL QUESTION THERE MAY BE AN ARGUMENT OVER WHETHER THE SENTENCING MEMORANDUM ISSUED BY JUDGE DAVIES IN AUGUST SHOULD BE ADMITTED INTO EVIDENCE AT THE CIVIL TRIAL WHILE THE MEMO PROBABLY SHOULD BE ADMITTED MR PHILLIPS SAID IT IS LESS CLEAR WHETHER THE PARTIES WILL BE BARRED FROM RELITIGATING ISSUES SETTLED BY THE MEMO THE MEMORANDUM SAYS THAT IN THE HOURS PRIOR TO THE MARCH 3 1991 BEATING MR KING CONSUMED MORE THAN 80 OUNCES OF MALT LIQUOR THAT AFTER OFFICERS APPROACHED HIM AND ORDERED HIM OUT OF HIS CAR HE TRIED TO RUN AWAY INTO AN UNLIT RECREATION AREA AND THAT OFFICERS COULD REASONABLY HAVE BELIEVED MR KING WAS UNDER THE INFLUENCE OF THE DRUG PCP AT THE TIME OF THE ARREST ON THE OTHER HAND JUDGE DAVIES WROTE THAT MR KOON TOOK COMMAND EARLY IN THE ARREST THAT MR POWELL STRUCK MR KING WITH FIVE OR SIX ILLEGAL BATON BLOWS AND THAT MR BRISENO WHO TESTIFIED AGAINST HIS FELLOW OFFICERS IN SIMI VALLEY AND WAS ACQUITTED IN BOTH CRIMINAL TRIALS ILLEGALLY STOMPED MR KING TRIGGERING THE ENTIRE CRIMINAL PORTION OF THE BEATING THE US ATTORNEY IN LOS ANGELES HAS GIVEN NOTICE OF ITS INTENT TO APPEAL JUDGE DAVIES'S SENTENCE RAISING THE POSSIBILITY THAT THE MEMORANDUM OR PARTS OF IT WILL BE THROWN OUT ALONG WITH THE JUDGE'S SENTENCE THE GOVERNMENT'S BRIEF IS EXPECTED JAN 19 FOLLOWING THE APPEAL FILINGS BY THE CONVICTED OFFICERS DUE DEC 10 ALL APPEAL PLEADINGS IN THE MATTER WON'T BE IN UNTIL LATE FEBRUARY OR EARLY MARCH THE CITY HAS DECLINED TO REPRESENT ANY OF THE FOUR FORMER OFFICERS SINCE THE START OF THE KING LITIGATION AND SAID IT WON'T PAY ATTORNEY FEES FOR THE FORMER OFFICERS IN MR KING'S CIVIL CASE UNLESS ORDERED TO DO SO BY A COURT IN NO EVENT WILL THE CITY PAY ANY PUNITIVE DAMAGES AWARDED AGAINST THE OFFICERS CITY LAWYERS SAID VARIOUS SETTLEMENT EFFORTS IN THE CASE HAVE FAILED TO BEAR FRUIT SEPARATELY OTHER CIVIL LITIGATION HAS EMERGED FROM THE AFTERMATH OF THE KING BEATING IN THE RIOTS THAT FOLLOWED THE 1992 NOTGUILTY VERDICTS IN SIMI VALLEY TRUCKER REGINALD O DENNY WAS SEVERELY BEATEN AT THE INTERSECTION OF FLORENCE AND NORMANDIE AVENUES IN THE SOUTH CENTRAL SECTION OF LOS ANGELES MR DENNY HAS SUED MR GATES THE LOS ANGELES POLICE DEPARTMENT AND THE CITY OF LOS ANGELES FOR VARIOUS CONSTITUTIONAL VIOLATIONS INCLUDING DENIAL OF DUE PROCESS EQUAL PROTECTION AND VIOLATION OF HIS CIVIL RIGHTS EXPERTS SAY MR DENNY'S SUIT IS FUNDAMENTALLY WEAKER THAN MR KING'S BECAUSE USUALLY POLICE DEPARTMENTS HAVE NO LEGAL DUTY TO PROTECT CITIZENS FROM OTHER PRIVATE CITIZENS THERE ARE THREE EXCEPTIONS TO THIS RULE WHERE POLICE HAVE A SPECIAL RELATIONSHIP WITH THE VICTIM WHERE POLICE ACTION ENHANCES THE DANGER TO THE VICTIM OR WHERE POLICE SERVICES ARE PROVIDED IN A MANNER THAT DISCRIMINATES FOR EXAMPLE AGAINST UNPOPULAR MINORITIES JOHNNIE L COCHRAN JR MR DENNY'S LAWYER SAID THE POLICE INTENTIONALLY REMOVED THEMSELVES FROM BLACK NEIGHBORHOODS DURING THE RIOTING FOR RACIAL REASONS SUCH CLAIMS ARE TOTALLY FALSE ACCORDING TO DON VINCENT THE CITY'S LAWYER MR COCHRAN HAS NOTHING TO SUPPORT THAT THE CHICAGO TRANSIT AUTHORITY DISCRIMINATED AGAINST A WHITE DOCTOR BECAUSE OF HIS RACE A FEDERAL APPEALS COURT HAS FOUND A PANEL OF THE SEVENTH US CIRCUIT COURT OF APPEALS UPHELD A JURY VERDICT IN FAVOR OF WILLIAM MCNABOLA AN INDEPENDENTCONTRACTOR PHYSICIAN WHO SPECIALIZED IN WORKERS' COMPENSATION CLAIMS AND WHO WAS FIRED IN 1986 MR MCNABOLA WON ABOUT 480000 IN LOST WAGES AND OTHER DAMAGES GENERALLY IN THE SEVENTH CIRCUIT MUNICIPAL AGENCIES CAN'T BE HELD RESPONSIBLE FOR ACTIONS OF INDIVIDUAL MANAGERS BUT THE COURT SAID THAT IN THIS CASE THE AGENCY'S BOARD KNEW ABOUT A PATTERN OF REVERSE DISCRIMINATION AND FAILED TO STOP IT EVIDENCE SHOWED FOR INSTANCE THAT AT ONE POINT MORE THAN 70 OF INDEPENDENTCONTRACTOR ATTORNEYS USED BY THE MANAGER WERE BLACK EVEN THOUGH BLACKS MAKE UP ONLY 3 OF THE ATTORNEY LABOR POOL IN CHICAGO A TRANSIT AUTHORITY SPOKESWOMAN HAD NO IMMEDIATE COMMENT ON THE RULING NOTED LEBOEUF LAMB LIEBY & MACRAE SAID IT WILL SHED ITS RALEIGH NC OFFICE IT ACQUIRED IN 1987 THE 16LAWYER RALEIGH OFFICE BROUGHT IN MOSTLY LOCAL CLIENTS AND A PARTNER THERE SAID THE BUSINESS GOALS OF THE OFFICE DIDN'T MESH WITH THOSE OF THE BIG NEW YORK LAW FIRM THE NEW FIRM WILL BE KNOWN AS RAGSDALE LIGGETT & FOLEY BEGINNING JAN 1 JUNDA WOO AND AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9311300057 931130 CREDIT MARKETS TREASURYS FINISH NARROWLY MIXED AFTER RALLY BASED ON FALLING OIL PRICES LOSES SOME GROUND BY THOMAS D LAURICELLA AND CANDACE CUMBERBATCH SPECIAL TO THE WALL STREET JOURNAL NEW YORK A BONDMARKET RALLY FUELED BY FALLING OIL PRICES YESTERDAY MORNING RAN OUT OF GAS DURING AFTERNOON TRADING LEAVING TREASURY PRICES NARROWLY MIXED THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/4 POINT OR LESS THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 100 5/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 623 FROM 624 ON FRIDAY MEANWHILE THE MUNICIPALBOND MARKET IS GEARING UP FOR A HUGE BOND DEAL FROM NEW JERSEY TOMORROW THE STATE IS SLATED TO CONDUCT ITS LARGESTEVER COMPETITIVELY BID MUNICIPALDEBT SALE WHEN IT ACCEPTS BIDS FOR 13 BILLION OF NOTES AT ONE STAGE DURING TRADING IN THE TREASURY MARKET THE 30YEAR BOND WAS UP NEARLY A FULL POINT IN PRICE AS ITS YIELD SCRAPED 618 THE REASON WAS A DROP IN ENERGY PRICES THAT HAD BEGUN LAST WEEK AND GAINED MOMENTUM ONCE US ENERGY MARKETS REOPENED AFTER A LONG BREAK FOR THE THANKSGIVING HOLIDAY CRUDE OIL FOR JANUARY DELIVERY ON THE NEW YORK MERCANTILE EXCHANGE PLUNGED AT THE OPENING BY 126 A BARREL BEFORE RECOVERING SOMEWHAT TO CLOSE 107 LOWER AT 1531 BUT AS HAS BEEN THE CASE FOR SEVERAL WEEKS BUYING EARLY IN THE DAY WAS DOMINATED BY SHORTTERM PLAYERS WHILE SPECULATIVE PLAYERS BID BOND PRICES SHARPLY HIGHER MOST INSTITUTIONAL INVESTORS REMAINED ON THE SIDELINES WITHOUT BUYING FROM THESE LARGE INSTITUTIONAL INVESTORS THE MARKET WAS UNABLE TO SUSTAIN ITS EARLY GAINS AND TRADERS WHO HAD PROFITED FROM THE RALLY ACTED QUICKLY TO CLOSE OUT POSITIONS THERE WAS NO REAL FOLLOWTHROUGH BUYING AND THE MARKET WANTED TO TAKE SOME PROFITS SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES AFTER THAT WE JUST GROUND OURSELVES INTO THE DUST AND CLOSED VERY LITTLE CHANGED DATA RELEASED LAST FRIDAY BY THE FEDERAL RESERVE PROVIDED A GLIMPSE AT AN IMPORTANT FACTOR THAT MAY BE UNDERCUTTING THE TREASURY MARKET FOR THE FIRST TIME IN THREE YEARS HOLDINGS OF GOVERNMENT SECURITIES BY COMMERCIAL BANKS HAVE FALLEN AS SOME AREAS OF BANK LENDING SUCH AS PERSONAL AND REALESTATE LOANS HAVE BEGUN TO RECOVER THE FED REPORTED THAT ON A SEASONALLY ADJUSTED BASIS AVERAGE HOLDINGS OF GOVERNMENT SECURITIES BY COMMERCIAL BANKS FELL 25 BILLION IN OCTOBER TO 7172 BILLION FROM SEPTEMBER'S LEVEL AND THE EARLY INDICATIONS ARE THAT THE DROP CONTINUED THROUGH NOVEMBER WHILE THE SCOPE OF THE DECLINE PALES IN COMPARISON TO THE 68 BILLION OF GOVERNMENT SECURITIES THAT COMMERCIAL BANKS ADDED TO THEIR PORTFOLIOS OVER THE PAST 12 MONTHS ANALYSTS SAID IT APPEARS TO SIGNAL A REVERSAL IN THE TREND AND THAT MEANS BAD NEWS FOR SHORTTERM TREASURY SECURITIES IT'S A CONCERN ON THE BEARISH SIDE FOR THE MARKET AS BANKS ARE GOING TO SUPPLY LESS LIQUIDITY TO THE MARKET SAID ALAN LEVENSON A MONEYMARKET ECONOMIST AT UBS SECURITIES MORE GENERALLY IT'S AN INDICATION THAT PRIVATE CREDIT DEMANDS ARE RISING AND THAT IS GOING TO MEAN MORE COMPETITION FOR THE GOVERNMENT HE SAID TRADERS WERE DISCOURAGED BY THE MARKET'S INABILITY TO SUSTAIN YESTERDAY MORNING'S RALLY IT WAS A POOR PERFORMANCE SAID MR BRIGGS OF DEUTSCHE BANK DESPITE THE BOND MARKET'S EARLY POSITIVE REPONSE THE DROP IN ENERGY PRICES COULD HAVE MIXED IMPLICATIONS FOR INTEREST RATES ACCORDING TO ANALYSTS YOU HAVE LOW OIL PRICES KEEPING INFLATION IN CHECK WHICH IS A BOOST TO THE LONG END SAID MICHAEL MORAN CHIEF ECONOMIST AT DAIWA SECURITIES AMERICA INC BUT IT WOULD ALSO GIVE A BOOST TO THE ECONOMY WHICH COULD PUSH SHORTTERM RATES UP NEVERTHELESS THE WAVE OF BUYING CAUSED BY THE SELLOFF IN THE ENERGY MARKET ALLOWED THE BOND MARKET TO WEATHER ANOTHER ROUND OF DATA DEPICTING A STRONGER ECONOMY THE NATIONAL ASSOCIATION OF REALTORS REPORTED THAT SALES OF EXISTING SINGLEFAMILY HOME SALES JUMPED 36 DURING OCTOBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF 408 MILLION UNITS THE HIGHEST LEVEL IN 14 YEARS MR MORAN OF DAIWA CONTENDED THAT THE RISE IN LONGTERM INTEREST RATES FROM THEIR HISTORIC LOWS MAY HAVE PROMPTED A RUSH OF HOME BUYERS WHO WERE AFRAID TO MISS THE BOAT THE INCREASE IN RATES THAT WE'VE SEEN IN THE PAST FEW WEEKS MIGHT BE HELPING HOUSING AS MANY CONSUMERS MAY BE THINKING THAT RATES HAVE BOTTOMED HE SAID BUT WHILE TRADERS WERE WILLING TO BRUSH ASIDE THE HOMESALES DATA THEY EXPRESSED CONCERN ABOUT THE FLOOD OF ECONOMIC REPORTS COMING UP LATER THIS WEEK WORRIES ABOUT THOSE REPORTS ARE WEIGHING ON THE MARKET SAID MR BRIGGS OF DEUTSCHE BANK TODAY TRADERS WILL HAVE TO CONTEND WITH THE CHICAGOAREA PURCHASING MANAGERS REPORT ALONG WITH FIGURES FOR THE START OF THE HOLIDAY SHOPPING SEASON TOMORROW WILL BRING THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S REPORT ON THE INDUSTRIAL SECTOR AS WELL AS US DATA ON PERSONAL INCOME AND SPENDING THE WEEK WILL BE CAPPED OFF FRIDAY BY THE NOVEMBER EMPLOYMENT REPORT MOST OF THE FIGURES WILL BE COMING IN ON THE STRONG SIDE PREDICTED MR MORAN OF DAIWA HERE ARE DETAILS OF THE THREEMONTH AND SIXMONTH BILL AUCTIONS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED DEC 2 THE 13WEEK BILLS MATURE MARCH 3 1994 AND THE 26WEEK BILLS MATURE JUNE 2 1994 ISSUANCE IS EXPECTED TO BE THE BIG STORY IN THE MUNICIPALBOND MARKET THIS WEEK WHILE THERE WEREN'T MANY PRICINGS LAST WEEK BECAUSE OF THANKSGIVING MORE THAN 3 BILLION OF SECURITIES ARE SCHEDULED TO COME TO THE MARKET IN THE NEXT FEW DAYS IT'S A PRETTY BIG CALENDAR THE DEALS ARE GOING TO HAVE TO BE ATTRACTIVELY PRICED TO DRAW BUYERS SAID EDWARD DROESCH AN UNDERWRITING AND SYNDICATION SPECIALIST AT GOLDMAN SACHS & CO COMPETITIVE MUNICIPALDEBT SALES HAVE BEEN PREDOMINANT IN NEW JERSEY SINCE AN EXECUTIVE ORDER WAS ISSUED BY GOV JIM FLORIO ON MAY 4 THAT ORDER REQUIRES THE OFFERINGS OF THE STATE AND ITS AUTHORITIES TO BE SOLD COMPETITIVELY UNLESS NEGOTIATION IS JUSTIFIED IN WRITING AND APPROVED THE GOVERNOR'S EXECUTIVE ORDER FOLLOWED NEWS ABOUT A FEDERAL INVESTIGATION OF NEGOTIATED UNDERWRITING PRACTICES USED FOR A 29 BILLION BOND ISSUE SOLD BY THE NEW JERSEY TURNPIKE AUTHORITY IN 1991 AND 1992 GOV FLORIO'S ORDER WILL REMAIN EFFECTIVE UNLESS GOVERNORELECT CHRISTINE TODD WHITMAN CHOOSES TO REVOKE IT AFTER SHE TAKES OFFICE IN JANUARY ACCORDING TO THE GOVERNOR'S OFFICE ALL OF THE NOTES WILL MATURE JUNE 15 1994 THEY HAVE BEEN RATED SP1PLUS BY STANDARD & POOR'S CORP IN SECONDARY DEALINGS MUNICIPALBOND PRICES ROSE WITH TREASURYS AND FINISHED 1/4 POINT TO 1/2 POINT HIGHER IN LIGHT TRADING A COMERICA BANK DEBT OFFERING OF 150 MILLION LED YESTERDAY'S MEAGER ISSUANCE ACTIVITY WHICH SAW ONLY 365 MILLION OF DEBT PRICED COMERICA BANK A UNIT OF COMERICA INC PRICED 20YEAR DEBT WITH A 15YEAR CALL OPTION AN UNUSUAL STRUCTURE FOR THE MARKET THE REMAINDER OF THE NEW ISSUANCE CAME FROM FEDERAL AGENCIES TRADING IN THE INVESTMENTGRADE MARKET WAS EXTREMELY QUIET WITH SPREADS OVER TREASURYS REMAINING UNCHANGED IN THE JUNKBOND MARKET TRADING WAS LIGHT WITH PRICES UP BY ALMOST 1/8 POINT LIGHT TRADING IN BOTH MARKETS IS EXPECTED FOR THE REMAINDER OF THE YEAR COMERICA BANK SOLD ITS 20YEAR DEBT AT 99388 TO YIELD 7183 A SPREAD OF 080 PERCENTAGE POINT ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC THE BOND OFFERING WAS UNUSUAL FOR A MARKET THAT TYPICALLY SEES SUBORDINATED DEBT FROM FINANCIAL COMPANIES WITH 10YEAR 12YEAR OR 15YEAR MATURITIES THAT ARE NONCALLABLE FOR LIFE ISSUERS USUALLY BELIEVE ADDING CALL OPTIONS AT THOSE MATURITIES IS TOO EXPENSIVE ONE SYNDICATE OFFICIAL SAID COMERICA HOWEVER WANTED THE LONGESTTERM DEBT IT COULD ISSUE TO INCREASE ITS FINANCIAL LIQUIDITY ACCORDING TO LEONARD CARLETON TREASURER MORTGAGESECURITIES PRICES ENDED A QUIET SESSION MODERATELY HIGHER PRICES ROSE 6/32 FOR 65 SECURITIES FOR DECEMBER DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED AT 98 29/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES FINISHED AT 99 4/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED AT 98 29/32 IN THE ASSETBACKED MARKET PARTICIPANTS THIS WEEK AWAIT TWO 1 BILLION CREDITCARD OFFERINGS MBNA CORP'S MBNA AMERICA BANK UNIT IS EXPECTED TODAY TO OFFER FIVEYEAR FLOATINGRATE CERTIFICATES IN A 1 BILLION DEAL LED BY LEHMAN BROTHERS INC MBNA IS BASED IN NEWARK DEL ON THURSDAY SIGNET BANKING CORP'S SIGNET BANK UNIT IS EXPECTED TO LAUNCH A TWOPART TRANSACTION LED BY JP MORGAN SECURITIES INC ONE CLASS OF THE OFFERING IS EXPECTED TO CONSIST OF 300 MILLION IN THREEYEAR FIXEDRATE CERTIFICATES THE SECOND CLASS IS EXPECTED TO CONSIST OF 700 MILLION IN FIVEYEAR FLOATINGRATE CERTIFICATES SIGNET IS BASED IN RICHMOND VA ONE PROBLEM THESE TRANSACTIONS MAY FACE IS THEIR SIMILIARITY BETWEEN THE TWO ISSUES DEALERS WILL HAVE TO FIND BUYERS FOR 17 BILLION IN FIVEYEAR FLOATINGRATE PAPER A TOUGH FEAT PARTICULARLY AT THE END OF THE YEAR 9311300056 931130 BUSINESS WORLD POLITICAL PACKAGING OF A VERY DIFFERENT SORT BY TIM W FERGUSON THE 84 CHEAPER MARTS IN NORTHERN CALIFORNIA HAVE NO MAGAZINE RACKS SO ABOUT THE ONLY THING TO READ ARE THE GROCERY BAGS THAT'S NO JOKE FILLING UP EVERY SIDE OF THE SACKS IS A TOPICAL AND RADICALLY INDIVIDUALISTIC ESSAY LIKELY TO SHOCK ANY NUMBER OF SHOPPERS ONE QUADRENNIAL BAGATORIAL URGES NOT VOTING BECAUSE DOING SO ONLY ENCOURAGES THE POLITICIANS SPARRING WITH THE STATE IS BUSINESS AS USUAL FOR THE PARENT CUSTOMER CO BASED IN BENICIA 35 MILES INLAND FROM SAN FRANCISCO THE OWNING ROSCOE FAMILY TAKES ITS LIBERTIES SERIOUSLY IF WITH A CHUCKLING HEART AND SOCIALISM IS NOT JUST AN ACADEMIC EVIL TO THESE FOLKS THEY PRACTICE THE PROFIT MOTIVE THE CHEAPER OUTLETS FOUNDER JOHN ROSCOE CALLS THEM COMPACT MASSMERCHANTS AND NOT CONVENIENCE STORES WHICH THEY MIGHT RESEMBLE WITH THEIR CORNER LOTS AND GAS PUMPS OUT FRONT GROSSES SEVERAL HUNDRED MILLION DOLLARS A YEAR ACCORDING TO MR ROSCOE ITS SHOPS HAVE SHADOWED THE GROWTH OF SUBURBS FROM THE GOLDEN GATE TO SACRAMENTO COMPOUNDED SAMESTORE SALES GAINS OF 12 ANNUALLY MR ROSCOE REPORTS HAVE SLIPPED TO 7 IN THE STATE'S BAD RECESSION STILL SOMETHING TO WRITE HOME ABOUT BUT THE WRITING THAT HIS SON COMPANY PRESIDENT NED ROSCOE AND A FEW HIRED PENS DO FOR THE BAGS IS ABOUT TROUBLES OUTSIDE THE GATES THIS MONTH'S TARGET IS THE CLINTON SOCIALIZED MEDICINE PLAN BEFORE THAT THE MESSAGE WAS RESPECT SMOKERS COURTING SYMPATHY FOR WHAT IT DESCRIBED AS AMERICA'S MOST ABUSED MINORITY IT INCLUDED 10 REASONS TO SMOKE 1 IT'S PLEASURABLE AND JUST AS MANY TO STOP THE SMOKEFREE ROSCOES DON'T ALLOW THE PRACTICE IN THEIR HEADQUARTERS BUT THEY SELL A LOT OF CIGARETTES SOME OTHER GRABBERS REDEVELOPMENT IS CALIFORNIA'S OWN FASCIST PLOT CUSTOMER CO TRIES TO STAY OUT OF OFFICIAL RENEWAL AREAS IT RECENTLY SAW A PROPERTY CONDEMNED SO THAT THE HOST CITY COULD CLEAR LAND FOR AN OUTLET OF THE PRICE CLUB A COMPETITOR OF SORTS POLICE RIPOFF ARTISTS WHO FALSELY CLAIM DISABILITIES USE WATER FREELY OPPOSING CONSERVATION EDICTS DURING A DROUGHT AND DECRIMINALIZE DRUGS NEARLY 1 1/2 MILLION BAGS GO OUT EACH TIME WE SAY THAT IF YOU WANT TO PICKET OUR STORES WE'LL GIVE YOU THE SIGNS ADVISES JOHN IT IS WHEN CHALLENGING THE CIVIC RELIGION THE IDEA THAT ALL THINGS CAN BE MADE BETTER THROUGH THE DEMOCRATIC PROCESS THAT THEY BLOW THE MOST MINDS NED SAYS EVEN SUCCESSFUL PEOPLE CAN'T CONCEIVE THAT THEY'RE IN CHARGE OF THEMSELVES ADDS HIS FATHER WHO LAMENTS A LOSS OF FREEDOM EACH TIME A CITY COUNCIL MEETS OR A SCHOOL DAY BEGINS YET ANY FATALISM HERE IS OVERCOME BY EXUBERANCE TEXTS HAVE INCLUDED ADVICE ON PERSONAL BETTERMENT SUCH AS ETIQUETTE FOR DATING ITSELF A POLITICAL EVENT THESE DAYS LIGHTHEARTED ILLUSTRATIONS ABOUND REFLECTING THE PERSONALITIES OF ROSCOE SENIOR WHO HAS MADE HIMSELF VICE PRESIDENT OF THE COMPANY AND NED A WRY COMIC BUT DON'T UNDERESTIMATE THEIR RESOLVE ON PRINCIPLE CHEAPER STORES WON'T SELL STATE LOTTERY TICKETS WHICH WOULD BE A NATURAL FOR THEM BECAUSE OF WHO CONTROLS THE GAME EARLY THIS YEAR CUSTOMER CO WAS ACQUITTED BY A JURY WHEN PROSECUTED BY CALIFORNIA'S ATTORNEY GENERAL A CONSERVATIVE REPUBLICAN FOR PEDDLING MILK BELOW THE MANDATED MINIMUM PRICE BACK IN 1979 JOHN GOT IN TROUBLE WITH THE FEDS FOR SELLING GASOLINE AT TOO HIGH A PRICE WHERE SUPPLY EQUALED DEMAND THE BAGATORIALS AREN'T THE LAST WORD IN CHANGING MINDS ALSO TO READ IN SOME OF THE STORES ARE PAPERBACKS OF AYN RAND'S ATLAS SHRUGGED FOR 5 IF A CUSTOMER BUYS ONE AND TRIES TO READ IT CUSTOMER CO PAYS HIM 10 NOTWITHSTANDING ALL THE EXTRACURRICULARS MR ROSCOE AND HIS SON AND A DAUGHTER WHO'S IN CHARGE OF PURCHASING ARE BUSINESSPEOPLE FOREMOST LONG BEFORE REENGINEERING BECAME A MANAGEMENT BUZZWORD THEIR COMPANY WAS TRANSFORMING ITSELF IT NEVER STOPS MORE THAN HALF THE STORES IT'S OPENED HAVE BEEN CLOSED ALL WE KNOW IS THAT WE CAN'T MAKE IT NEXT YEAR THE WAY WE'RE MAKING IT THIS YEAR SAYS JOHN THAT'S WHY YOU CAN'T HAVE ALL THE REGULATIONS AND THE STATIC KIND OF ECONOMIC ENVIRONMENT NED SCHOOLED AT THE UNIVERSITY OF CHICAGO OFFERS THAT JOHN HARTFORD OVER A LIFETIME OF RUNNING THE A&P CHAIN COMPLETELY REMADE THE COMPANY THREE TIMES JOHN ROSCOE CONVERTED HIS CONVENIENCE OPERATION IN THE EARLY 1980S WHEN HE SAW BANKRUPTCY AHEAD FOR THOSE WHO STAYED IN THAT GAME HE CONSOLIDATED AND AIMED TO BEAT THE SUPERMARKETS REGULARLY ON PRICE HIGH TRAFFIC WOULD CARRY THE DAY HENCE THE ABSENCE OF A READING STAND ONLY SOFTCORE PORNOGRAPHY WOULD BE WORTH SELLING THE ROSCOES FIGURED AND THEY DIDN'T WANT TO DO THAT NOT BECAUSE THEY'RE MORALISTS ALTHOUGH JOHN IS READING JAMES Q WILSON'S LATEST BOOK BUT BECAUSE THEY SAW IT DISCOURAGING THEIR ER BREADANDBUTTER CLIENTELE THEY HAVE NO SUCH COMPUNCTION ABOUT TOBACCO OR ALCOHOL PRODUCTS WHICH THEY SAY THEIR SHOPPERS EXPECT TO FIND IN FACT IN CHEAPER'S ONLY REMAINING STORE IN OAKLAND A SMALL SHOP NEAR THE BERKELEY LINE THE VICESTOVITTLES RATIO IS NEARLY ONE TO ONE AT URBANCORE LOCATIONS THE BIGGEST PROBLEM IS NOT CRIME ACCORDING TO NED BUT THE COMPLAINTS OF NEIGHBORS OVER WHAT IS SOLD AND WHO IS ATTRACTED TO BUY IT OR TO LOITER THAT LEADS TO HASSLES WITH POLICE AND POLITICIANS BUT THIS IS ONE FIELD OF COMBAT THE ROSCOES PREFER TO AVOID THE MARKET NEAR BERKELEY AND ITS UNIVERSITY OF CALIFORNIA CAMPUS IS ALSO THE ONE THAT DRAWS THE MOST FLAK OVER THE BAGATORIALS IT DOESN'T STOCK AYN RAND SOMEONE WHO HATES THE BAGS MIGHT THINK THAT WITH DOLLAR SIGNS UNASHAMEDLY IN THEIR EYES THE ROSCOES ARE SCROOGES BUT MANAGERS CAN MAKE 100000 A YEAR UNDER COMMISSIONS THAT GIVE THEM 40 OF STORE MARGINS 10 ON GASOLINE MINUS THEIR LABOR EXPENSES OTHER INCENTIVES APPLY EMPLOYEES ARE ENCOURAGED MONETARILY TO IMPROVE THEMSELVES IN VARIOUS WAYS INCLUDING READING NOT JUST RAND CUSTOMER CO'S POLICY MANUAL CONSISTS OF TWO SENTENCES USE YOUR COMMON SENSE DO THE DECENT THING NED ROSCOE SAYS HE EMPLOYS A 35PAGE APPLICATION FORM TO BE CONFIDENT IN HIS HIRES IT INVOLVES CHECKING CREDIT HE DOESN'T WANT BANKRUPTS AND CHEAPER SCREENS FOR DRUG USE INTERESTINGLY FOR AN OUTFIT THAT GLORIES IN DEFYING CONVENTION IT FINDS LAWABIDANCE THE BEST STANDARD OF RELIABILITY ALL GOOD RETAILERS ACCORDING TO THE ROSCOES HAVE TWO FACES INVITING TO THE PUBLIC AND UNYIELDING TO SUPPLIERS SIMPLE AND SOPHISTICATED FREESPIRITED AND BUTTONEDDOWN IN THIS CASE ADD SOLICITOUS OF MASS OPINION AND WILLING TO UPSET IT NOBODY WOULD ADVISE A BUSINESS TO WRAP EVERY PURCHASE IN CONTROVERSY BUT JOHN ROSCOE IS A CONTRARIAN BY NATURE AND OUT OF NEED TOO SAYS HE YOU CAN'T NECESSARILY DO WHAT PEOPLE TELL YOU TO DO OR YOU'RE NOT GOING TO BE AROUND BECAUSE THAT'S WHAT EVERYONE IS DOING 9311300055 931130 ENTERPRISE ONCEROLLING INLINE SKATE MAKERS SKID AMID RIVALRY NEW DESIGNS ENDORSEMENTS ARE AIMED TO COUNTER SLIDING SALES GROWTH BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL AFTER ROLLING ALONG AT RECORD SPEED MAKERS OF INLINE SKATES FEAR THEY'RE HEADED FOR SOME SCRAPED KNEES FOR YEARS EVERYONE SEEMED TO WANT THE HIGHPERFORMANCE ROLLER SKATES WITH WHEELS ALIGNED LIKE THE BLADES ON ICE SKATES BY LAST YEAR INLINE SKATING HAD ATTRACTED 94 MILLION ENTHUSIASTS TRIPLE THE FIGURE OF THREE YEARS EARLIER AND IT WAS AMERICA'S FASTESTGROWING SPORT SAYS AMERICAN SPORTS DATA INC IN FACT SMALL COMPANIES MAKING THE HOT SKATES COULDN'T KEEP UP WITH DEMAND BUT NOW SALES GROWTH IS SLOWING AND COMPETITION IS ON THE RISE TO PROTECT THEMSELVES COMPANIES ARE PUSHING NEW DESIGNS PLANNING NATIONAL TELEVISON ADVERTISING FOR THE FIRST TIME AND GETTING ENDORSEMENTS FROM SPORTS STARS TO THE RELIEF OF ANXIOUS PARENTS SOME COMPANIES ARE EVEN TRYING TO IMPROVE THE BRAKES THERE'S GOING TO BE A SHAKEOUT SAYS JOHN EGART EXECUTIVE VICE PRESIDENT OF FIRST TEAM SPORTS INC A MOUNDS VIEW MINN SKATE MAKER AND AN EARLY COMPETITOR OF INDUSTRY LEADER ROLLERBLADE INC MR EGART WHO COFOUNDED FIRST TEAM IN 1986 PREDICTS FEWER THAN ONETHIRD OF THE CURRENT COMPETITORS WILL CONTROL 90 OF THE MARKET WHEN THE SHAKEOUT IS OVER A BIG PROBLEM LIES IN THE INDUSTRY'S BOOM IT ATTRACTED MORE COMPETITORS THE PIE IS GROWING BUT IT'S GETTING SLICED INTO SMALLER PIECES SAYS JEFF MASON PUBLISHER OF INLINE RETAILER & INDUSTRY NEWS IN BOULDER COLO HE ESTIMATES THE NUMBER OF INLINE SKATE MAKERS HAS MORE THAN DOUBLED TO 30 IN THE PAST FOUR YEARS FOURTEEN COMPANIES ALONE HAWK OVER 140 TYPES OF INLINE SKATES IN MR MASON'S 1994 BUYER'S GUIDE ADDING TO THE COMPETITIVE STRAIN NEWCOMERS INCLUDE BIG US AND EUROPEAN SKIEQUIPMENT CONCERNS SUCH AS K2 CORP A VASHON WASH UNIT OF ANTHONY INDUSTRIES INC AND AUSTRIA'S ATOMIC SKIFABRIK A ROHRMOSER AS SURVIVORS OF THE SKIINDUSTRY SLUMP BOTH ARE ACCUSTOMED TO FIERCELY COMPETITIVE CONDITIONS K2 AND ATOMIC ARE FOCUSING ON THE UPPER END OF THE MARKET WHERE INLINE SKATES RETAIL FOR 150 TO OVER 300 A PAIR THIS SEGMENT WHICH STRESSES HIGH PERFORMANCE AND PRODUCT INNOVATION ACCOUNTED FOR VIRTUALLY ALL OF THE INDUSTRY'S SALES UNTIL THE LATE 1980S WHEN LESS EXPENSIVE SKATES BEGAN APPEARING BARGAIN SKATES NOW ACCOUNT FOR 44 OF TOTAL INLINE SKATE SALES THE RUSH TO TAP MASSMARKET DEMAND HAS RESULTED IN A SURGE OF CHEAP ASIAN IMPORTS THAT MAY DISCOURAGE ENTRYLEVEL SKATERS FROM TRADING UP BUT JUST AS COMPETITORS RUSH IN SALES GROWTH IS SLOWING WHILE INLINE SKATE SALES TO RETAILERS ARE EXPECTED TO RISE 16 THIS YEAR TO MORE THAN 300 MILLION SALES LAST YEAR GREW NEARLY TWICE THAT FAST TO COPE WITH COMPETITION SKATE MAKERS ARE FIGHTING HARDER ROLLERBLADE MOUNTED ONE OF THE MOST AGGRESSIVE RESPONSES PARTLY BECAUSE IT HAS THE MOST TO LOSE ITS ESTIMATED ANNUAL SALES OF 130 MILLION REPRESENT CLOSE TO HALF OF THE INDUSTRY'S WHOLESALE VOLUME ANALYSTS SAY TO SHORE UP THE COMPANY WAR CHEST ROLLERBLADE OWNER ROBERT O NAEGELE JR SOLD A 50 STAKE IN THE MINNETONKA MINN CONCERN TO THE BENETTON FAMILY'S NORDICA SPA A BIG ITALIAN SKIBOOTS SUPPLIER NOW NORDICA ALSO MAKES ROLLERBLADE'S INLINE SKATE BOOTS LAST YEAR NORDICA AND MR NAEGELE WHO REMAINS ROLLERBLADE'S CHAIRMAN OVERHAULED SENIOR MANAGEMENT AMONG HIS RECRUITS WERE EXECUTIVES FROM HASBRO INC'S TONKA UNIT THE PILLSBURY CO UNIT OF GRAND METROPOLITAN PLC AND REEBOK INTERNATIONAL LTD TO PROTECT ITS TURF ROLLERBLADE LAST FEBRUARY PETITIONED THE FEDERAL GOVERNMENT'S INTERNATIONAL TRADE COMMISSION TO FORCE 33 COMPETITORS TO PAY ROYALTIES FOR ALLEGEDLY COPYING ITS PATENTED DESIGNS THE COMPANY SAYS MOST OF THE DISPUTES HAVE BEEN RESOLVED THOUGH IT DECLINES TO DISCLOSE TERMS OF THE SETTLEMENTS LONGTIME RIVAL FIRST TEAM SPORTS BLAMES MARKET UNCERTAINTY CAUSED BY ROLLERBLADE'S COMPLAINT FOR MUCH OF FIRST TEAM'S RECENT DECLINE IN BOTH SALES AND EARNINGS IN FOUR YEARS IN THE SIX MONTHS ENDED AUG 31 THE COMPANY'S EARNINGS SLID 64 FROM A YEAR EARLIER TO 684000 WHILE SALES WERE OFF 27 TO 157 MILLION TO SET THEMSELVES APART MAKERS ARE STEPPING UP PRODUCT INNOVATION FIVE OF ROLLERBLADE'S NINE NEW MODELS FOR 1994 FEATURE A NEW BRAKING SYSTEM WITH MOST SKATES BRAKING REQUIRES THE AWKWARD MOVEMENT OF RAISING THE FRONT OF THE SKATE TO DRAG A HEEL PAD ON THE GROUND ROLLERBLADE'S NEW DESIGN MINIMIZES THE MOTION WITH A LEVER THAT CONNECTS THE BRAKE PAD TO A CUFF ON THE BACK OF THE SKATE IN FEBRUARY K2 PLANS TO BEGIN SELLING INLINE SKATES FEATURING A SOFT FABRIC BOOT RADICALLY DIFFERENT FROM THE MOLDEDPLASTIC OR METALALLOY BOOTS COMMONLY FOUND THE NINE MODELS WERE DESIGNED BY OLYMPIC SPEED SKATER TONY MEIBOCK AND JOHN SVENSSON AN INLINE SPEED SKATER WHO WAS CLOCKED GOING 77 MILES PER HOUR SAYS K2 MARKETING MANAGER NADINE BROWN PROMOTION OF NEW PRODUCTS IS INTENSIFYING AS WELL IN 1994 ROLLERBLADE WILL LAUNCH THE INDUSTRY'S FIRST NATIONAL TELEVISION ADVERTISING CAMPAIGN SAYS NOEL SHADKO ROLLERBLADE'S VICE PRESIDENT OF MARKETING AND STRATEGIC PLANNING CANSTAR SPORTS INC IN QUEBEC WHICH DERIVED A FIFTH OF ITS C177 MILLION US133 MILLION IN 1992 SALES FROM INLINE SKATES IS CAPITALIZING ON ITS POSITION AS THE TOP SUPPLIER OF ICE SKATES TO THE NATIONAL HOCKEY LEAGUE CANSTAR BEGAN SELLING INLINE SKATES UNDER THE BAUER LABEL IN 1990 IN FEBRUARY THE COMPANY ANNOUNCED A LICENSING AGREEMENT WITH THE NHL NAMING CANSTAR THE OFFICIAL NHL SUPPLIER OF ROLLER HOCKEY EQUIPMENT SOME COMPANIES ARE COUNTING ON ENDORSEMENTS FROM SPORTS PERSONALITIES OVER THE PAST THREE YEARS FIRST TEAM HAS SIGNED UP AS SPOKESMEN NATIONAL HOCKEY LEAGUE STARS WAYNE GRETZKY AND BRETT HULL AS WELL AS SPOKESWOMAN KATARINA WITT TWOTIME WINNER OF THE OLYMPIC GOLD MEDAL SAYS MR EGART A FORMER ADIDAS AG EXECUTIVE FROM MY EXPERIENCE IN THE SHOE BUSINESS I KNOW WHAT MICHAEL JORDAN DID FOR NIKE AND DR J DID FOR CONVERSE 9311300054 931130 INTERNATIONAL BRIEF HOUSE FOODS CORP FISCAL HALF'S PRETAX PROFIT ROSE 13 TO 915 MILLION JAPAN'S HOUSE FOODS CORP SAID UNCONSOLIDATED PRETAX PROFIT ROSE 13 IN ITS FISCAL FIRST HALF ENDED SEPT 30 CITING INCREASED MARKETING AND LOWER PRODUCTION COSTS PRETAX PROFIT FOR THE HALF WAS 996 BILLION YEN 915 MILLION UP FROM 884 BILLION YEN IN THE YEAREARLIER PERIOD SALES ROSE 25 TO 1016 BILLION YEN FROM A YEAREARLIER 9912 BILLION YEN AND NET INCOME ROSE 98 TO 505 BILLION YEN FROM 459 BILLION YEN HOUSE FOODS A SPICE AND CURRY MAKER SAID THE INDUSTRY WAS HURT DURING THE PERIOD BY WEAK CONSUMER SPENDING AND AN UNSEASONABLY COOL AND RAINY SUMMER WHICH KEPT SHOPPERS AWAY FROM STORES THE COMPANY RECENTLY CHANGED ITS NAME FROM HOUSE FOOD INDUSTRIAL CO 9311300053 931130 CHILDHOOD LOST FOR INNERCITY YOUTH A HARD LIFE MAY LEAD TO A HARD SENTENCE AT 13 JOSEPH CHANEY FACES TRIAL AS AN ADULT IN MIAMI A CITY SICKENED BY CRIME DREAMS OF A FULL REFRIGERATOR BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI WEARING A SHORTSLEEVED SHIRT AND HANDCUFFS JOSEPH CHANEY JR STOOD QUIETLY IN THE COURTROOM FOR HIS ARRAIGNMENT LAST SEPTEMBER ON ARMEDROBBERY CHARGES HE WAS ACCUSED OF BEING ONE OF THREE PEOPLE WHO ROBBED A MAN AT GUNPOINT THE SORT OF CRIME JUDGE ALAN POSTMAN WARNED THAT IS MAKING MIAMI AN ABSOLUTELY DEPLORABLE PLACE TO LIVE THE JUDGE NOTED THE DEFENDANT'S RECORD OF MORE THAN 15 ARRESTS ALL LIGHTLY DISPOSED OF THEN ORDERED THAT THIS TIME HE BE HELD WITHOUT BOND PENDING TRIAL WITH THAT JOSEPH CHANEY SLIGHT OF BUILD AND BABYFACED LOOKED BACK AT HIS MOTHER AND HE BEGAN TO CRY JOSEPH IS 13 YEARS OLD MOMMA MOMMA HE SOBBED TEARS STREAMING DOWN HIS FACE AS HE STRUGGLED TO BREAK FREE OF THE BAILIFFS WHO WERE LEADING HIM AWAY I DON'T WANT TO GO THE PROBLEM OF VIOLENT CRIME BY YOUTHS IS EMERGING AS ONE OF THE MOST PRESSING ISSUES OF THE DAY IN RECENT WEEKS IT HAS DRAWN THE FOCUS OF THE WHITE HOUSE AND CONGRESS AND BLACK LEADERS SUCH AS THE REV JESSE JACKSON HAVE GIVEN FRESH ATTENTION TO THE PROBLEM WARNING THAT BLACKONBLACK CRIME IS DESTROYING MANY OF THE GAINS OF THE CIVILRIGHTS MOVEMENT IN MIAMI IT HAS ATTRACTED SPECIAL NOTICE BECAUSE OF A STRING OF TOURIST MURDERS THIS YEAR IN MOST CASES BLACK YOUTHS SHOOTING WHITE TOURISTS THE INCIDENTS HAVE DRAWN INTERNATIONAL HEADLINES AND MADE MIAMI LIKE WASHINGTON AND LOS ANGELES AN EMBLEM OF INNERCITY VIOLENCE YET MANY BLACKS HERE FIND IT GALLING THAT TOURIST KILLINGS MAKE HEADLINES WHILE DAYTODAY INNERCITY VIOLENCE WHICH IS FAR MORE PERVASIVE GOES UNCHECKED YOU'RE GOING TO MAKE ALL THIS HOOPLA OVER NINE TOURISTS IN ONE YEAR AND THERE ARE 90 TIMES THAT NUMBER OF BLACKS KILLING BLACKS ASKS GEORGIA AYERS EXECUTIVE DIRECTOR OF A MIAMI AGENCY THAT HELPS TROUBLED TEENS TAKE CARE OF THE INNER CITY AND THE OUTER CITY WILL TAKE CARE OF ITSELF YET THE PROBLEMS OF INNERCITY YOUTH ARE DEEP AND COMPLICATED AND THEY ARE NOT EASILY SOLVED YOU HAVE A CHILD BORN TO A MOTHER WHO HAS NO FUTURE WHO SEES LIFE FOR TODAY WHO HAS NO DESIRE OR CAPACITY TO ASPIRE SAYS T WILLARD FAIR PRESIDENT OF THE GREATER MIAMI URBAN LEAGUE SHE HAS NO JOB NO HOPE LET HER HAVE ANOTHER CHILD AND THE BONDING AND NURTURING NEVER HAPPENS THE CHILD GROWS UP IN NEIGHBORHOODS WITH NO GREEN SPACES NO RECREATIONAL FACILITIES POOR HOUSING HE ADDS YOU GIVE ME THOSE KINDS OF CIRCUMSTANCES AND I'LL SHOW YOU AN ENVIRONMENT WHERE PEOPLE WILL BE VIOLENT THE STORY BEHIND JOSEPH CHANEY'S DAY IN COURT ILLUSTRATES THE COMPLEXITY OF THE PROBLEM JOSEPH LEWIS CHANEY WAS BORN ON DEC 15 1979 HIS MOTHER YVONNE JACKSON WAS A HIGHSCHOOL DROPOUT WHO ALREADY HAD TWO CHILDREN THE FIRST BORN WHEN SHE WAS 16 HIS FATHER JOSEPH SR WAS A CABDRIVER SOON AFTER JOSEPH WAS BORN MS JACKSON AND HER MOTHER WILLOLA PAIGE MOVED TO THE FOURBEDROOM APARTMENT WHERE THE FAMILY LIVES TODAY ALONG THE METRORAIL LINE IN THE LIBERTY CITY SECTION OF TOWN SITE OF RACE RIOTS IN THE 1980S THE APARTMENT'S LINOLEUM FLOORING IS CRACKED AND CHIPPED HOLES IN THE WINDOW SCREENS ALLOW MOSQUITOES AN EASY ENTRANCE A CEILING FAN STIRS THE SLUGGISH HOT AIR THE LIVINGROOM FURNITURE A COUCH AND TWO EASY CHAIRS IS COVERED IN SHEETS A 27INCH TELEVISION IS THE ROOM'S FOCAL POINT ON TOP OF A BOOKCASE IS A SECONDPLACE TROPHY JOSEPH'S YOUNGER BROTHER WON IN A KARATE TOURNAMENT AND ON ANOTHER SHELF IS A 1992 CERTIFICATE NAMING JOSEPH STUDENT OF THE WEEK AT THE JANNMANN OPPORTUNITY SCHOOL JOSEPH'S PARENTS NEVER MARRIED AND THEY PARTED BEFORE JOSEPH WAS FIVE HIS ONLY MEMORY OF THE TWO TOGETHER IS OF A FIGHT IN WHICH JOSEPH SR HIT YVONNE WHO WAS PREGNANT AND SHE RETALIATED BY STRIKING HIM IN THE FACE WITH A POT COVER HIS FATHER TODAY WORKS AS A HOTEL BOOKKEEPER AND STAYS IN OCCASIONAL TOUCH WITH THE FAMILY IT'S MY FAULT BUT THEN AGAIN IT'S NOT JOSEPH SR SAYS SPEAKING ABOUT HIS SON TODAY HE IS MARRIED TO ANOTHER WOMAN AND HAS ANOTHER FAMILY SPEAKING ABOUT THE PAST HE SAYS HE HAD TO LEAVE I WASN'T STABLE MYSELF I HAD TO MAKE A LIFE FOR MYSELF JOSEPH'S MOTHER AN ATTRACTIVE WOMAN WITH A QUIET MANNER AND PIERCING EYES GREW UP WITH HER MOTHER AND OLDER BROTHER WILLIE WHO TODAY IS A 12YEAR VETERAN OF THE MIAMI POLICE FORCE MS JACKSON WHO IS NOW 36 ADMITS SHE WASN'T THE BEST PARENT AFTER THE BIRTH OF HER OLDEST CHILD MARIO IT WASN'T UNUSUAL FOR HER TO TAKE HIM TO THE CLUB ROYALE A NEIGHBORHOOD BAR SHE SAYS SHE WOULD LEAVE HIM OUTSIDE WITH FRIENDS WHILE SHE WENT INSIDE TO GET A BEER AND SOCIALIZE MARIO NOW 20 WAS RECENTLY RELEASED FROM JAIL AFTER AN ARMEDROBBERY CASE WAS DISMISSED FOR LACK OF EVIDENCE HIS FATHER IS IN PRISON MS JACKSON SAYS THOUGH SHE DOESN'T KNOW WHAT FOR SHE SAYS SHE NEVER LOVED THE MAN NOR DID SHE MARRY HIM MS JACKSON'S SECOND CHILD WAS JOVON HIS FATHER A FORMER HIGHSCHOOLFOOTBALL COACH WAS A CHILDHOOD FRIEND OF MS JACKSON'S SHE SAYS HE ENDED UP IN PRISON FOR DRUG DEALING SHE THINKS AND DIED A FEW YEARS AGO OF AIDS JOVON 15 ALSO HAS HAD MANY ARRESTS AND NOW LIVES AT HOME AS THE FAMILY GREW MS JACKSON'S PARTYING CONTINUED I WAS STILL WILD SHE SAYS I WOULD STAY OUT LATE I WOULD HAVE MY CHILDREN WITH ME SOMETIMES CLUBBING DANCING THE THIRD CHILD WAS JOSEPH OR JOJO HE SEEMS TO BE HIS MOTHER'S FAVORITE SHE SAYS HE WAS A MAMA'S BOY WHEN HE WAS LITTLE SHE CALLS HIM A SMART LITTLE FELLOW WHO ONCE DREAMED OF BECOMING A LAWYER SAYS HIS UNCLE WILLIE WHEN JOSEPH WAS YOUNGER HE WAS SMARTER THAN MY SISTER'S OTHER KIDS I USED TO THINK THAT IF ANYBODY'S GOING TO GO ANYWHERE IT'LL BE JOSEPH MS JACKSON SAYS THAT WHEN JOSEPH WAS LITTLE HE STAYED AWAY FROM VIOLENT THINGS SHE NOTES HE STAYED TO HIMSELF IF A FIGHT STARTED OUT THERE HE WOULDN'T GO OUT EVEN TO WATCH IT BUT HE ALWAYS HUNG OUT WITH OLDER CHILDREN AND IN HIS NEIGHBORHOOD THERE WAS NO ESCAPING THE VIOLENCE ONE TIME THE NEIGHBORHOOD BARBER WAS FATALLY SHOT OVER WHAT PEOPLE SAY WAS A 5 DEBT JOSEPH REMEMBERS HIS MOTHER RUNNING INTO THE APARTMENT AND GRABBING A TOWEL TO PUT OVER THE NECK OF THE WOUNDED MAN WHO WAS LYING A FEW FEET FROM THE FAMILY'S DOORSTEP BUT IT WAS TOO LATE HE WAS GONE JOSEPH SAYS JOSEPH'S FIRST ARREST CAME WHEN HE WAS SIX YEARS OLD THE CHARGE WAS PETTY LARCENY OVER THE FOLLOWING FOUR YEARS HE WAS ARRESTED TWO MORE TIMES CHARGED WITH BURGLARY AND RESISTING ARREST MEANWHILE JOSEPH'S HOME LIFE WAS A SHAMBLES DUE TO HIS MOTHER'S INCREASINGLY SEVERE DRUG HABIT LIFE WASN'T LIKE I WANTED IT TO BE SAYS JOSEPH ABOUT THOSE DAYS HE DREAMED OF LIVING IN A RICH HOUSE WHERE THE REFRIGERATOR WAS ALWAYS FULL ONE WEEKEND JOSEPH'S UNCLE OFFICER JACKSON DROPPED BY FOR A VISIT WHEN HE WALKED IN HE FOUND DIRTY CLOTHES EVERYWHERE NO FOOD IN THE REFRIGERATOR AND LEARNED THE ELECTRIC COMPANY HAD TURNED OFF THE POWER I WAS ANGRY AND DISGUSTED HE SAYS BECAUSE I COULDN'T ENVISION ANYBODY LIVING LIKE THAT ESPECIALLY MY NIECES AND NEPHEWS AND NOT EVEN MY SISTER WE DIDN'T GROW UP IN A NASTY HOUSE OFFICER JACKSON SAYS HE TOOK THE CHILDREN TO THEIR GRANDFATHER'S HOUSE HE THEN WENT SHOPPING FOR CHILDREN'S CLOTHES WHILE HIS GIRLFRIEND CLEANED THE CHILDREN UP AND HE CALLED HIS MOTHER MRS PAIGE WHO WAS VACATIONING IN NEW YORK CITY SHE IMMEDIATELY RETURNED TO TAKE CARE OF THE CHILDREN MRS PAIGE WHO DID NOT LIVE WITH WILLIE AND YVONNE JACKSON'S FATHER MOVED BACK INTO THE APARTMENT WITH HER DAUGHTER AND GRANDCHILDREN ONE TIME MRS PAIGE ENTERED THE KITCHEN TO FIND IT FILLED WITH SMOKE IT TURNED OUT THAT HER DAUGHTER RETURNING HOME AFTER A DRUG BINGE HAD FALLEN ASLEEP WHILE COOKING HOT DOGS MRS PAIGE CALLED THE POLICE TO PUT HER DAUGHTER IN A DRUG REHABILITATION PROGRAM MS JACKSON AGREED TO GO BUT ASKED FOR TIME TO PUT ON SOME CLOTHES THEN SHE WENT TO THE BATHROOM AND CRAWLED OUT THE WINDOW AFTER THAT MRS PAIGE GAVE UP TRYING TO CHANGE HER DAUGHTER YVONNE WAS GROWN SO ALL I COULD DO WAS TALK TO HER MRS PAIGE SAYS I COULDN'T MAKE HER STOP SHE EXPLAINED TO ME THAT SHE HAD TO DO IT FOR HERSELF NOT FOR ME NOT FOR THE KIDS BUT FOR HER SO I SAID THANK YOU FOR TELLING ME' AND I DIDN'T CALL THE POLICE ON HER ANY MORE ONE NIGHT JOSEPH FOLLOWED HIS MOTHER AND A FRIEND TO A DRUG HANGOUT WHEN HE SAW THEM GOING INSIDE HE SAYS HE WENT UP TO HIS MOTHER AND TUGGED ON HER ARM URGING HER TO COME HOME WITH HIM WHEN SHE BRUSHED HIM OFF HE RAN HOME TO GET HIS GRANDMOTHER WHO REFUSED TO GET INVOLVED IF SHE WANTS TO DO IT LET HER DO IT JOSEPH RECALLS HER SAYING HE SAYS SHE THEN TOOK JOSEPH AND HIS BROTHERS AND SISTERS TO MCDONALD'S FOR DINNER TELLING THEM THEY COULD ORDER ANYTHING AROUND THAT TIME MRS PAIGE HAD A RELIGIOUS CONVERSION AFTER A PAIR OF JEHOVAH'S WITNESSES CAME TO HER DOOR AND TALKED WITH HER WHEN YOU TURN TO GOD IT REALLY HELPS SHE SAYS BY GETTING SPIRITUAL FOOD AS WELL AS PHYSICAL FOOD I DIDN'T GET DEPRESSED SHE STARTED GOING TO RELIGIOUS MEETINGS THREE TIMES A WEEK AND TAKING HER GRANDCHILDREN WITH HER JOSEPH SAYS HE DIDN'T MIND THE SERVICES AND ENJOYED THE JEHOVAH'S WITNESSES' PICNICS AT THE BEACH ONE NIGHT JOSEPH WOKE UP AND WALKED DOWNSTAIRS HE FOUND HIS MOTHER SLUMPED ON THE COUCH ASLEEP MS JACKSON AWOKE CALLED FOR HER SON AND STARTED CRYING JOSEPH SAYS HE BEGGED HER TO GET OFF DRUGS TWO DAYS LATER SHE ENTERED A REHABILITATION PROGRAM BUT AFTER COMPLETING IT SHE FELL BACK INTO HER OLD WAYS FINALLY SHE DECIDED ON HER OWN TO KICK THE HABIT SHE SAYS HER OUTLOOK GRADUALLY CHANGED AS SHE WATCHED HER MOTHER RAISING HER SIX CHILDREN WHO NOW RANGE IN AGE FROM EIGHT TO 20 AND REALIZED THE BURDEN SHE WAS PUTTING ON HER ONE SUNDAY MORNING SHE LEFT THE APARTMENT AN HOUR LATER SHE SAYS SHE CALLED MRS PAIGE AND SAID MOMMA I'VE CHECKED MYSELF IN THE FAMILY SAYS SHE HAS BEEN DRUGFREE FOR ALMOST THREE YEARS IRONICALLY JOSEPH'S BRUSHES WITH THE LAW INCREASED AFTER HIS MOTHER WENT OFF DRUGS HIS UNCLE AND FATHER SAY THE CHILDREN WEREN'T DISCIPLINED ENOUGH HIS MOTHER SAYS THE LURE OF THE STREETS WAS TOO POWERFUL THE OLDER NEIGHBORHOOD BOYS SHE SAYS WERE ALWAYS LURKING ABOUT SO IT'S NOTHING JOSEPH CAN RUN FROM IN 1991 AND 1992 HE WAS ARRESTED AT LEAST 10 TIMES ON CHARGES RANGING FROM ASSAULT AND BATTERY TO ARMED ROBBERY AND AUTO THEFT ACCORDING TO THE FLORIDA DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES BUT IN JUVENILE COURT HE ALWAYS GOT LIGHT PUNISHMENTS HIS MOTHER SAYS SUCH AS HOUSE ARREST AND COLLECTING OLD NEWSPAPERS MS JACKSON TOOK A PARENTING COURSE BUT FOUND IT GEARED TO MOTHERS OF NEWBORNS AND OF LITTLE USE TO HER SHE LOOKED TO THE SCHOOLS FOR COUNSEL SOMETIMES SHE WOULD COME OUT HERE WITH HER ARMS OPEN LOOKING FOR HELP SAYS WILLIE SHATTEEN THE PRINCIPAL OF JOSEPH'S SCHOOL SOMETIMES SHE'D COME HERE REALLY CHEWING HER KIDS OUT SHE PUT FORTH THE EFFORT FROM WHAT I'VE SEEN BUT HER SONS DON'T WANT TO LISTEN TO ANY GROWNUP LAST YEAR JOSEPH MISSED 120 DAYS OF SCHOOL SOME MORNINGS HIS MOTHER WOULD DRIVE HIM TO SCHOOL HERSELF BUT SHE SAYS NO SOONER THAN YOU BAT YOUR EYE HE'S GONE MS JACKSON BEGAN CALLING HER BROTHER THE POLICE OFFICER TO DISCIPLINE THE CHILDREN A TASK HE RESENTED I DON'T HAVE TO SPANK MY OWN KIDS HE SAYS SO WHY SHOULD I GO OUT AND SPANK SOMEBODY ELSE'S HE ALSO RESENTS THEIR LAWBREAKING TO ME IT'S ALMOST LIKE A SLAP IN THE FACE WHEN THEY DO A CRIME ONCE WHEN OFFICER JACKSON WAS LOOKING THROUGH A PRINTOUT OF PICKUP ORDERS FOR JUVENILE DELINQUENTS HE SAW THE NAMES OF JOSEPH AND JOVON THAT WEEKEND HE WENT OVER TO HIS SISTER'S APARTMENT AND TOLD THE BOYS HE WAS TURNING THEM IN JOSEPH THOUGHT I WAS KIDDING UNTIL HE SAW THE POLICE CAR PULL UP IN THE YARD HE RECALLS AT THAT POINT HE WANTED TO RUN I HELD HIM I PHYSICALLY HELD HIM AND THEY TOOK HIM LAST FEBRUARY JOSEPH AND A FRIEND WERE ARRESTED FOR ROBBING A WOMAN WHILE SHE SAT IN HER CAR JOSEPH AND HIS BUDDY ALLEGEDLY WALKED UP TO THE WOMAN ASKED HER FOR A CIGARETTE AND THEN LEFT THEN THEY CAME BACK AND DEMANDED SHE GIVE UP HER PURSE THE VICTIM SAID JOSEPH THREATENED HER WITH A HAMMER WHEN HE WAS PICKED UP LATER AT A GROCERY STORE EIGHT BLOCKS AWAY JOSEPH ADMITTED BEING THERE WHEN HIS BUDDY APPROACHED THE VICTIM BUT HE DENIED THREATENING ANYONE HIS PUNISHMENT INCLUDED ABIDING BY A CURFEW AND ATTENDING A COUNSELING PROGRAM FOR TROUBLED YOUNGSTERS LAST JULY CAME THE ROBBERY WHICH FINALLY LANDED THE YOUTH BEHIND BARS JOSEPH IS ACCUSED OF BEING ONE OF THREE YOUTHS WHO ROBBED A 30YEAROLD LIBERTY CITY MAN AND OF HAVING FIRED A WARNING SHOT TO GET THE MAN TO GIVE UP HIS WALLET THE CASE REACHED ADULT CRIMINAL COURT A COUPLE OF MONTHS LATER FLORIDA LAWENFORCEMENT OFFICIALS HAVE TRIED TO CRACK DOWN ON YOUTH CRIME SEEKING MORE INDICTMENTS OR FILING PETITIONS IN COURT TO TRY TEENS AS ADULTS FOR FIRSTDEGREE FELONIES THAT ARE PUNISHABLE BY LIFE IMPRISONMENT OR DEATH THE STATE SAYS IT HAS GREATER AUTHORITY TO DETAIN AND CONTROL TEENS WHEN THEY ARE IN THE ADULT SYSTEM BY THE TIME JOSEPH'S CASE CAME UP FOR A HEARING MIAMI WAS IN AN UPROAR OVER CRIME THANKS TO THE LATEST TOURIST MURDER THE GRAND JURY ORDERED JOSEPH TRIED AS AN ADULT AND THE JUDGE DENIED BAIL THE YOUTH WHO HAD BEEN EXPECTING THE CUSTOMARY SLAP ON THE WRIST WAS DEVASTATED SITTING IN THE DADE COUNTY JUVENILE DETENTION CENTER WHERE HE AWAITS TRIAL ON DEC 13 JOSEPH GAZES OUT THE WINDOW AT AN OUTSIDE WORLD HE SAYS HE IS AFRAID HE MAY NEVER SEE AGAIN DRESSED IN DRAB GRAY PRISON CLOTHING HIS FEET SHACKLED IN LEG IRONS HE SAYS HE ACCEPTS RESPONSIBILITY FOR HIS ACTIONS NOW I JUST WANTED TO BE WITH THEM HE SAYS WHEN ASKED WHY HE HUNG OUT WITH OLDER BOYS I WASN'T THINKING ABOUT NOTHING HIS MOTHER THINKS IT MAY TURN OUT FOR THE BEST HE'LL GO STRAIGHT SHE PREDICTS BECAUSE THE CONFINEMENT PUT SOME FEAR IN HIS HEART HIS FATHER CONCURS IT'S BEST FOR THE SYSTEM TO BREAK HIM BEFORE HE GETS KILLED OR KILLS SOMEBODY JOSEPH SR SAYS I'D RATHER HE BE WHERE HE'S AT NOW THAN ON THE STREETS WHEN JOSEPH SR WENT TO VISIT HIS SON IN THE JUVENILEDETENTION CENTER HE SAW A FRIGHTENED LITTLE BOY HE ALMOST DIDN'T RECOGNIZE SOMETHING TOLD ME TO GO UP TO HIM AND HUG HIM BUT I COULDN'T JOSEPH SR SAYS HE PAUSES AND PUTS HIS HEAD DOWN SOMETHING'S TELLING ME TO BACK OFF