LOS ANGELES IN THE FIRST OF THREE GALLERIES DEVOTED TO ROLYWHOLYOVER A CIRCUS AT THE MUSEUM OF CONTEMPORARY ART MOCA VISITORS WERE CONFRONTED WITH TWO WOODEN TABLES FURNISHED WITH CHESSBOARDS AT WHICH THEY WERE INVITED TO PLAY THE TABLES WERE FLANKED BY FOUR BEAUTIFUL WOODEN CABINETS EACH WITH FOUR UPPER CUPBOARDS AND 32 LOWER DRAWERS IN EACH OF THESE COMPARTMENTS WAS ONE BOOK PAMPHLET OR MUSICAL SCORE ALL OF THEM RELATED IN SOME WAY TO THE INTERESTS OR CAREER OF JOHN CAGE WORKS ON MODERN MUSIC ABSTRACT ART PHILOSOPHY ZEN BUDDHISM THOREAU MUSHROOM HUNTING WHICH VISITORS WERE INVITED TO READ AT THE TIME OF MY VISIT A MAN AND A YOUNG GIRL WERE PLAYING CHESS AND A NUMBER OF PEOPLE WERE RIFFLING THROUGH THE CUPBOARDS AND DRAWERS PERHAPS THEY WERE SURPRISED AS I WAS TO FIND THAT THE BOOKS SEEMED TO BE IN ALPHABETICAL ORDER WHICH IS VERY MUCH UNLIKE CAGE THE RADICALLY UNCONVENTIONAL COMPOSER WHO DIED IN AUGUST AT THE AGE OF 79 AFTER HELPING TO PLAN THIS SHOW ON THE WALLS AND FLOOR OF THE ROOM WERE PLACED 22 OBJECTS IDENTIFIED ONLY BY A KEYED PAMPHLET AVAILABLE AT THE DOOR THESE WERE ON LOAN FROM 22 DIFFERENT MUSEUMS OF 130 THAT HAD BEEN ASKED TO PARTICIPATE WITHIN A 30MILE RADIUS OF MOCA AND CHOSEN BY CHANCE OPERATIONS FROM A LIST OF 10 OBJECTS EACH MUSEUM HAD AGREED TO LEND THEIR LOCATION IN THE ROOM WAS SIMILARLY DETERMINED BY SOME SECRET CAGEAN GAME AS WAS THE ARRANGEMENT OF ALL THE OBJECTS IN THE NEXT TWO GALLERIES THIS YIELDED THROUGHOUT THE SHOW A BIZARRE BUMPY RHYTHM OF EMPTY WALLS LIKE THE SILENCES IN CAGE'S MUSICAL SCORES FOLLOWED BY SEVERAL THINGS ALL JAMMED TOGETHER ARTWORKS HUNG HIGH OUT OF SIGHT OR ON A LINE WITH YOUR ANKLES NOGUCHI ROCKS OR REAL MANHOLE COVERS OR EVISCERATED TV SETS ARRANGED IN CAREFULLY RANDOM ORDER ABOUT THE FLOORS AS IT TURNED OUT THE CHANCE OPERATIONS THAT DETERMINED THE BORROWED OBJECTS IN THE FIRST GALLERY TURNED UP LITTLE OF INTEREST WHICH MAY HAVE BEEN PRECISELY WHAT CAGE EXPECTED INGRID BERGMAN'S BUSTIER FROM CACTUS FLOWER COURTESY OF FREDERICK'S OF HOLLYWOOD LINGERIE MUSEUM DREW MORE ATTENTION THAN MINOR WORKS BY JOHN CONSTABLE FROM THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES SALVADOR DALI FROM THE LANNAN FOUNDATION JACOB EPSTEIN FROM THE HUNTINGTON COLLECTION AND EDWARD RUSCHA FROM MOCA ITSELF A CRUCIFIXION CARVED ON A TINY FRUIT PIT FROM THE MUSEUM OF JURASSIC TECHNOLOGY WAS MOUNTED TOO HIGH ON THE WALL FOR ME TO SEE IT THE NEXT GALLERY WAS DEVOTED TO 34 VISUAL WORKS BY CAGE PLUS IN A GLASS CASE IN THE MIDDLE OF THE FLOOR THE MANUSCRIPT OF HENRY DAVID THOREAU'S JOURNALS OPENED TO A PAGE OF HIS SKETCHES CAGE WAS A GREAT DEVOTEE OF THOREAU'SPARTICULARLY OF HIS GOSPEL OF ANARCHIC INDEPENDENCE AND FASHIONED A NUMBER OF HIS SOUND CREATIONS OUT OF SNIPPETS OF THOREAU TEXTS OR BY ASKING MUSICIANS TO PLAY THE OUTLINE OF THOREAU SKETCHES SUPERIMPOSED ON A MUSICAL STAFF SOME OF CAGE'S UNUSUAL SCORES CAREFULLY DRAWN OR HANDLETTERED BY THE COMPOSER WERE AMONG THE WORKS HUNG HELTERSKELTER IN THIS ROOM THERE WERE ALSO SAMPLES OF HIS MESOSTICS ABSTRACT POEMS ARRANGED ABOUT A VERTICAL SPINE OF WORDS AND OF HIS EDIBLE DRAWINGS ON GREEN SHEETS MADE OF VARIOUS VEGETABLES AND HERBS SHREDDED DRIED AND PRESSED MOST OF HIS VISUAL ARTWORKS ON DISPLAY HERE THOUGH WERE TINTED ETCHINGS MADE DURING HIS ANNUAL VISITS TO CROWN POINT PRESS IN NORTHERN CALIFORNIA BETWEEN 1978 AND 1992 THESE SQUIGGLES OR MISTY IRREGULAR ZEN CIRCLES AND LOOPS RESEMBLE THE MARKS LEFT BY GLASSES DIPPED IN INK AND SET DOWN ON PAPER AGAINST LONG HORIZONTAL AND SCRATCHED VERTICAL LINES ATTRACTIVE VAGUELY JAPANESE WORKS WHICH CAGE SAW AS AN EXTENSION OF HIS HANDDRAWN MUSICAL SCORES THEY ADD LITTLE TO HIS REPUTATION IN FACT MATTING AND FRAMING THEM AS IF THEY WERE GENUINE WORKS OF MUSEUM ART SEEMS TO UNDERCUT SLIGHTLY WHAT CAGE WAS ALL ABOUT THE MOST ELABORATE GAMES OF ROLYWHOLYOVER WERE SAVED FOR THE SPACIOUS FINAL GALLERY WHICH WAS SCATTERED WITH AN EVERCHANGING SELECTION FROM SOME 168 WORKS INCLUDING MANY PIECES BY WELLKNOWN ALLOVER ABSTRACTIONISTS CHOSEN BY CAGE AND DRAWN FROM HIS OWN COLLECTION MOCA'S AND OTHER SOURCES THE TITLE OF THE SHOW BY THE WAY COMES FROM ANOTHER BOOK SACRED TO CAGE JAMES JOYCE'S FINNEGANS WAKE IT APPEARS TO REFER TO THE DREAMER OF THE BOOK ROLLING OVER IN BED IN THE BIG GALLERY THE GIMMICK WAS THAT YOU NEVER KNEW FROM ONE DAY TO THE NEXT WHICH OF THE 168 WORKS WOULD BE ON DISPLAY OR WHERE I COUNTED 86 UP BETWEEN 1130 AND 130 ON NOV 6 INCLUDING REPRESENTATIVE WORKS BY MORRIS GRAVES MARK TOBEY ROBERT RAUSCHENBERG FRANZ KLINE JASPER JOHNS ISAMU NOGUCHI CY TWOMBLY AD REINHARDT LOUISE NEVELSON AND SOL LEWITT THE ONLY WAY TO BE SURE OF WHICH WAS WHICH WAS TO COMPARE THE NUMBER STAMPED ON A LITTLE METAL DISK TACKED ALONGSIDE EACH WORK WITH THE MASTER LIST HANDED OUT AT THE ENTRANCE CLOUDS PASSING OVER SKYLIGHTS ONLY NATURAL LIGHTING IS USED IN THESE MOCA GALLERIES KEPT ALTERING THE LOOK OF THE DISPLAY AT THE SAME TIME MUSEUM STAFFERS WERE PERPETUALLY MOVING AND REMOVING WORKS AS THEY DRAGGED ABOUT LADDERS SHIFTED ROLLING METAL RACKS RIPPED DUCT TAPE OFF FLOOR CABLES AND DRILLED HOLES WITH ELECTRIC SCREWDRIVERS IT BECAME CLEAR THAT THEY TOO WERE PART OF THE SHOW IF THE CHANCE COMPUTER PROGRAMS FROM WHICH THEY TOOK THEIR ORDERS CAME OUT FAVORABLY YOU COULD CONCEIVABLY HAVE SEEN ALL 168 WORKS IN THE COURSE OF A FEW VISITS ALSO IN THIS ROOM WERE THREE LARGE LUCITE CABINETS ON WHEELS EACH CONTAINING TRANSPARENT DRAWERS FILLED WITH SCRAPS SKETCHES LETTERS PROGRAMS BOOKS AND SCORES PLUS OCCASIONAL STONES FEATHERS ETC BELONGING TO CAGE FOR SOME REASON I FOUND THESE MORE FASCINATING THAN THE ART ON THE WALLS THE COLLECTION INCLUDED ONE OF THE 20 GREENFLOCKED BOXES FULL OF SCRAPS PREPARED IN 1934 BY MARCEL DUCHAMP ANOTHER OF CAGE'S FRIENDS AND MENTORS AS A VERSION OF HIS EVERINPROGRESS LA MARIEE MISE A NUE THE BRIDE STRIPPED BARE FOUR SHOJI SCREENS WERE HUNG WITH A CHANGING DISPLAY OF ZEN MEDITATION CIRCLES INKED ON PAPER SCROLLS AN INTERACTIVE COMPUTER STATION ALLOWED VISITORS TO LISTEN TO AND INTERMIX CHUNKS OF MUSIC BY CAGE AND HIS FRIENDS WHILE WORDS ON THE SCREEN TRIED TO EXPLAIN THE SEMIRANDOM GURGLES ROARS SCRAPES BLEEPS AND BOOMS EMERGING FROM THE EARPHONES IN AN AUDITORIUM DOWNSTAIRS A CONTINUOUS IF UNPREDICTABLE PROGRAM OF TALKS PERFORMANCES TAPES AND FILMS ROLLED ON MEANWHILE ALL OVER SOUTHERN CALIFORNIA OTHER INSTITUTIONS WERE PUTTING ON THEIR OWN CONCERTS ANTIOPERAS HAPPENINGS EXHIBITS AND CHESS TOURNAMENTS THAT CLAIMED CAGE AS THEIR CREATOR OR INSPIRATION JOHN WOULD HAVE LOVED IT THE CURATORS INSISTED JULIE LAZAR WAS MOCA'S PRIME MOVER AND HE PROBABLY WOULD HAVE FOR ALL HIS FALSENAIVE WINKING RADICAL'S WISDOM AND HIS LIFELONG RESISTANCE TO INSTITUTIONAL ART CAGE WAS ALWAYS ALERT FOR OPPORTUNITIES TO PREACH HIS EVERYTHING IS ART MESSAGE AND TO MAINTAIN HIS OWN REPUTATION AS THE GENIAL GREAT ANARCH CAGE'S MOST IMPORTANT LEGACY REMAINS HIS LIBERATING UNRULEBOUND WASHOUTTHEMIND GOSPEL AND SOME OF THE SPARER LESS CACOPHONIC EXAMPLES OF HIS WHIMSICAL MUSIC PREFERABLY PERFORMED LIVE BUT INSOFAR AS A MUSEUM SHOW CAN DO JUSTICE TO AN ANTIMUSEUM VISIONARY THIS TRAVELING CIRCUS DOES THE 50 CATALOG IS A 10INCHBY12INCH MIRRORED ALUMINUM BOX CONTAINING MORE SCRAPBOOK ITEMS ALONG WITH 15 SEPARATELY BOUND OR FOLDED TEXTS WRITTEN BY OR OF INTEREST TO CAGE INCLUDING A SAMPLING OF HIS MACROBIOTIC RECIPES HAVING JUST CLOSED IN LOS ANGELES ROLYWHOLYOVER A CIRCUS WILL TRAVEL FOR THE NEXT YEAR AND A HALF TO THE MENIL COLLECTION IN HOUSTON THE GUGGENHEIM MUSEUM IN NEW YORK THE CONTEMPORARY ART CENTER IN MITO JAPAN AND THE PHILADELPHIA MUSEUM OF ART IN EACH CITY THE RANDOMLY CHOSEN OBJECTS FROM SURROUNDING MUSEUMS WILL DIFFER AS WILL THE EXTERNAL CAGERELATED CIRCUS AMERICAN TELEPHONE & TELEGRAPH CO WHICH CLAIMS TO BE NO LESS INTERESTED IN INNOVATION THAN JOHN CAGE IS PICKING UP A SUBSTANTIAL PORTION OF THE COSTS MR LITTLEJOHN IS A NOVELIST CRITIC AND PROFESSOR OF JOURNALISM AT THE UNIVERSITY OF CALIFORNIA BERKELEY 9311300051 931130 BUSINESS BRIEF INFLIGHT PHONE CORP FLIGHTLINK' TO BE INSTALLED ON AMERICA WEST AIRCRAFT INFLIGHT PHONE CORP SAID IT AGREED TO INSTALL ITS DIGITAL PASSENGER COMMUNICATIONS AND ENTERTAINMENT SYSTEM ON ALL OF AMERICA WEST AIRLINES' 85 AIRCRAFT BEGINNING IN JANUARY CLOSELY HELD INFLIGHT OF OAKBROOK TERRACE ILL SAID THE CONTRACT ALSO CALLS FOR ITS FLIGHTLINK SYSTEM TO BE INSTALLED IN ANY AIRPLANES THE PHOENIX CARRIER ACQUIRES THE SYSTEM LETS CUSTOMERS MAKE PHONE CALLS SEND FAXES TRANSMIT COMPUTER DATA PLAY VIDEO GAMES AND EVEN SHOP USING VIDEO SCREENS INSTALLED IN SEATBACKS INFLIGHT IS A RIVAL OF GTE CORP'S GTE AIRFONE UNIT WHICH IS CURRENTLY THE BIGGEST PROVIDER OF AIRTOGROUND COMMUNICATION SERVICES TO THE AIRLINES AIRFONE'S CURRENT SYSTEM IS BASED ON SOCALLED ANALOG TECHNOLOGY ALTHOUGH THE GTE UNIT IS SWITCHING TO THE CLEARER AND MORE RELIABLE DIGITAL FORMAT A GROWING PRESENCE IN THE BUSINESS IS THE CLAIRCOM JOINT VENTURE BETWEEN MCCAW CELLULAR COMMUNICATIONS AND THE HUGHES NETWORK SYSTEMS UNIT OF GENERAL MOTORS CORP WHICH RECENTLY CONTRACTED TO REPLACE GTE AIRFONE'S SYSTEM ON AMERICAN AIRLINES' ABOUT 650 JETS 9311300050 931130 MARKETING & MEDIA MARKETSCAN CONSUMERS' CRAVING FOR PRETZELS GIVES A TWIST TO SNACK'S STATUS BY ELEENA DE LISSER THE LOWLY PRETZEL IS TURNING OUT TO BE THE SNACK FOOD FOR THE '90S WHILE SALES OF POTATO CHIPS AND CHEESE SNACKS ARE SINKING PRETZELS HAVE TAKEN OFF THEY NOW ACCOUNT FOR MORE THAN 16 OF SALES GROWTH AND 18 OF VOLUME GROWTH IN THE SNACKFOOD CATEGORY FOR THE 12WEEK PERIOD ENDED SEPT 12 SUPERMARKETS' DOLLAR SALES OF PRETZELS WERE UP ALMOST 14 FROM A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE PRETZELS HAVE SLOWLY AND INCREASINGLY CREPT FORWARD IN IMPORTANCE IN OUR DIETS SAYS HARRY BALZER VICE PRESIDENT OF NPD GROUP A CONSUMER MARKETRESEARCH FIRM WHILE POTATO CHIPS AND TORTILLA CHIPS STILL MAINTAIN A COMMANDING LEAD IN TOTAL SALES AND VOLUME PRETZELS ARE NOW AN 880 MILLION A YEAR BUSINESS ACCORDING TO THE SNACK FOOD ASSOCIATION IN FACT THEY'VE BECOME SO HOT THAT RETAILERS HAVE MOVED THE PRODUCT UP TO EYE LEVEL AND OUT OF THE COFFIN CORNER SAYS KEVIN BOWLER PRESIDENT OF ANHEUSERBUSCH CO'S EAGLE SNACKS DIVISION REFERRING TO THE PRODUCT'S TRADITIONAL POSITION ON THE BOTTOM SHELF EVEN WITHOUT AGGRESSIVE PROMOTION PRETZELS ARE AN ITEM THAT CONSUMERS ARE LOOKING FOR WHEN THEY ENTER THE SNACK AISLE WHAT HAPPENED APPARENTLY THE PRETZEL HAS SLOWLY QUIETLY GAINED A REPUTATION AS BEING THE BETTERFORYOU SNACK FOOD MOST PRETZELS CONTAIN LITTLE FAT USUALLY ONLY ABOUT A GRAM OF FAT FOR EACH OUNCE OF PRETZELS IN CONTRAST AN OUNCE OF POTATO CHIPS CONTAINS ABOUT 10 GRAMS OF FAT IRONICALLY THAT BENEFIT HASN'T BEEN A BIG PART OF PRETZEL MARKETING THE PRODUCT WASN'T PROMOTED AS A HEALTHY SNACK UNTIL RECENTLY NOW COMPANIES SUCH AS PEPSICO INC'S FRITOLAY PROCLAIM THE LOWFAT CONTENT ON THE FRONT OF PRETZEL PACKAGES THE LOW FAT HAS BEEN THERE ALL ALONG AND WE NEVER NOTICED IT SAYS ONE SNACK COMPANY EXECUTIVE PRETZELS WERE A RELATIVELY FLAT DULL CATEGORY FOR A LONG TIME UNTIL THE CONSUMER DISCOVERED THEM THE EXECUTIVE ADDS THIS DISCOVERY OCCURRED AS CONSUMERS BEGAN TO SPEND MORE TIME READING LABELS SAYS MR BALZER OF NPD LABELS HELPED GET THE PRODUCT MOVING CAROL CARTER A 44YEAROLD ATLANTA WRITER WHO DESCRIBES HERSELF AS EXTREMELY HEALTHCONSCIOUS IS A CASE IN POINT SHE HAD GIVEN UP ALL SNACKS UNTIL RECENTLY FOR YEARS I BASICALLY DIDN'T SNACK ON ANYTHING EXCEPT FRUIT SHE SAYS I'M ONE OF THOSE CONSUMERS WHO PICKS UP THE PRODUCT AND TURNS OVER THE BACK AND READS THE CONTENT SHE STARTED SNACKING ON PRETZELS WHEN SHE REALIZED HOW FLAVORFUL AND LOW IN FAT THEY WERE THEY JUST TAKE THE EDGE OFF YOUR APPETITE SHE EXPLAINS SHE ALSO LIKES THE FACT THAT PRETZELS ARE AVAILABLE ANYWHERE IN SUPERMARKETS CONVENIENCE STORES AND VENDING MACHINES SO SHE DOESN'T NEED TO MAKE A SPECIAL TRIP TO THE HEALTHFOOD STORE PRETZELS CAME FROM RATHER HUMBLE BEGINNINGS THEY ORIGINATED IN SOUTHERN FRANCE AND NORTHERN ITALY DURING THE SIXTH CENTURY MONKS ARE BELIEVED TO HAVE MADE THE FIRST PRETZEL USING LEFTOVER BREAD DOUGH TWISTING IT INTO A FORM TO REPRESENT CHILDREN'S ARMS FOLDED IN PRAYERS PRETZELS DERIVED FROM THE LATIN WORD PRETIOLA WHICH MEANS LITTLE REWARD WERE GIVEN TO CHILDREN WHO HAD RECITED THEIR PRAYERS THE SNACK BECAME POPULAR IN AUSTRIA AND GERMANY AND EMIGRANTS FROM THOSE COUNTRIES BROUGHT THE FOOD TO THE US FOR YEARS THE PRETZEL WAS THE POOR STEPSISTER TO THE POTATO CHIP WE DIDN'T PUT A HUGE AMOUNT OF BRAND ATTENTION TO THIS IN THE PAST SAYS DWIGHT RISKEY FRITOLAY'S VICE PRESIDENT OF NEW PRODUCTS AND MARKET RESEARCH PRETZELS WERE VERY REGIONAL WITH A MUCH HIGHER CONSUMPTION IN THE NORTHEAST SO WE DIDN'T PUT MUCH FOCUS ON IT THE SNACK IS STILL PRIMARILY A REGIONAL ONE WITH THE BULK OF SALES CONCENTRATED IN THE NORTHEAST AND PARTS OF THE MIDWEST ACCORDING TO NPD RESEARCH 11 OF CONSUMERS ATE PRETZELS AT LEAST ONCE EVERY TWO WEEKS LAST YEAR THAT'S UP FROM 95 IN 1991 AND 65 IN 1989 PRETZELS' DOUBLEDIGIT SALES GROWTH FOR THE 12 WEEKS ENDED SEPT 12 COMPARES FAVORABLY WITH TORTILLA CHIPS WHICH WERE UP ABOUT 98 POTATO CHIPS DOWN 51 AND CHEESE SNACKS OFF 36 ACCORDING TO INFORMATION RESOURCES FRITOLAY FOR ONE BELIEVES THE PRETZEL CATEGORY CAN GROW TO BECOME A MUCH LARGER PART OF THE SALTY SNACKFOOD BUSINESS IT HAS REDISCOVERED THE ROLD GOLD PRETZEL LINE WHICH IT HAS MARKETED SINCE 1961 IN AUGUST THE COMPANY LAUNCHED THE BRAND'S FIRST NATIONAL TELEVISION AD CAMPAIGN FEATURING JASON ALEXANDER OF SEINFELD THIS SUMMER FRITO ALSO INTRODUCED ROLD GOLD PRETZEL CHIPS WHICH ARE PRETZELS MADE IN THE FORM OF A CHIP AND ROLD GOLD PRETZEL BITS WHICH ARE PRETZELS CUT UP INTO LITTLE CHUNKS AND FLAVORED WITH HONEY MUSTARD OR GARLIC SEASONINGS THIS BRAND HAS GOT A LOT MORE LEGS THAN WE'VE REALLY TESTED IN THE LAST FEW YEARS FRITO'S MR RISKEY SAYS SNYDER'S OF HANOVER AND ROLD GOLD DOMINATE PRETZEL SALES IN SUPERMARKETS WITH 156 AND 148 MARKET SHARES RESPECTIVELY FOR THE 12 WEEKS ENDED SEPT 12 EXECUTIVES AT SNYDER'S BASED IN HANOVER PA DECLINED TO COMMENT ON THE PRIVATELY HELD COMPANY'S MARKETING STRATEGY BUT ANHEUSERBUSCH'S EAGLE SNACKS DIVISION IS ALSO PUTTING MORE STOCK IN PRETZELS FOR THE 12 WEEKS EAGLE PRETZEL SALES MORE THAN DOUBLED EAGLE'S MR BOWLER SAYS THE COMPANY CHANGED ITS PRETZEL MARKETING APPROACH FROM A SPECIALTY NICHE TO A MORE MAINSTREAM SNACK EARLIER THIS YEAR EAGLE CHANGED THE PACKAGING ADDING A WINDOW SO CONSUMERS CAN SEE THE PRODUCT MR BOWLER SAYS HE WOULD LIKE TO SEE PRETZELS GROW TO ABOUT 10 OF EAGLE'S SNACK BUSINESS EAGLE'S SALES HAVE ALSO BEEN HELPED BY RETAILERS WHO ARE EXPANDING THEIR SNACK AISLES AND GIVING MORE PROMINENT SPACE TO PRETZEL BRANDS AT NABISCO FOODS GROUP A UNIT OF RJR NABISCO HOLDINGS CORP MORE THAN HALF OF THE FOOD COMPANY'S PRETZEL VOLUME IS COMING FROM ITS FATFREE LINE NABISCO HAS ALSO INCREASED THE PACKAGE SIZE BY 20 FOR ITS TWO REGULAR PRETZEL BRANDS MR PHIPPS PRETZEL CHIPS AND MR SALTY 9311300049 931130 CLINTON STEPS ON STRIKE SEEN AS AN EXCEPTION LABOR SECRETARY EXPECTS INTERVENTION IN DISPUTES ONLY IN UNUSUAL CASES BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH SAID PRESIDENT CLINTON AND HIS CABINET ARE VERY CONSCIOUS OF THE POTENTIAL DANGER OF PRESIDENTIAL INVOLVEMENT IN LABOR DISPUTES AND HE EXPECTS MR CLINTON TO INTERVENE ONLY WHEN THERE ARE EXCEPTIONAL EXTENUATING CIRCUMSTANCES MR CLINTON RECENTLY HELPED END A STRIKE BY FLIGHT ATTENDANTS AT AMR CORP'S AMERICAN AIRLINES BY CALLING LEADERS OF BOTH SIDES AND URGING THEM TO SUBMIT THEIR DIFFERENCES TO BINDING ARBITRATION ROBERT CRANDALL AMR CHAIRMAN SAID HE HAD BEEN LEANED ON BY THE PRESIDENT AND SOME OTHER CHIEF EXECUTIVES HAVE CRITICIZED MR CLINTON'S CONDUCT A PRESIDENT RISKS POLITICIZING LABOR DISPUTES IF HE INTERVENES TOO READILY MR REICH TOLD A SMALL GROUP OF REPORTERS YESTERDAY YOU SIMPLY DON'T WANT TO MAKE MEMBERS OF CONGRESS FALL UNDER SOME PRESSURE FROM EITHER LABOR OR MANAGEMENT TO GET THE WHITE HOUSE INVOLVED HE SAID FREQUENT PRESIDENTIAL INTERFERENCE MIGHT ALSO ENCOURAGE UNIONS AND EMPLOYERS TO CIRCUMVENT THE EXISTING GOVERNMENT MEDIATION MECHANISMS ASKED WHAT CRITERIA THE PRESIDENT SHOULD USE IN DECIDING WHETHER TO GET INVOLVED IN A LABOR DISPUTE MR REICH SAID THE BASIC CRITERION IS NO IN OTHER WORDS THERE IS A VERY VERY HIGH BURDEN OF PROOF ALL I CAN SAY IS THAT THERE WERE ENOUGH EXCEPTIONAL EXTENUATING CIRCUMSTANCES THAT HE DID GET INVOLVED IN THE CASE OF AMERICAN AIRLINES THE LABOR SECRETARY SAID HE CITED TWO SUCH EXCEPTIONAL CIRCUMSTANCES THAT THE PARTIES WERE ALREADY MOVING TOWARD SOME SORT OF MEDIATION OR ARBITRATION AND THAT THE STRIKE THREATENED TO DISRUPT TRAVEL FOR THE THANKSGIVING HOLIDAY EVEN THOUGH AMERICAN AIRLINES HAD REJECTED A UNION PROPOSAL TO SEEK FEDERAL MEDIATION MR REICH SAID THE PRESIDENT WOULD NOT HAVE GOTTEN INVOLVED HAD IT NOT LOOKED AS THOUGH THE PARTIES WERE MOVING IN THAT DIRECTION AS TRANSPORTATION SECRETARY FEDERICO PENA DID IN THE AMERICAN AIRLINES CASE MR REICH DREW A DISTINCTION BETWEEN THE FEDERAL GOVERNMENT'S HELPING TO PUSH THE PARTIES TOWARD MEDIATION WHICH HE SAID IS APPROPRIATE AND TRYING TO SETTLE DISPUTES WHICH ISN'T MR REICH SAID HE WAS RELUCTANT TO GET INVOLVED IN THE SIXMONTHLONG UNITED MINE WORKERS STRIKE BUT IN SEPTEMBER ASKED FORMER LABOR SECRETARY WILLIAM USERY TO SERVE AS A SPECIAL MEDIATOR BECAUSE HE COULDN'T IN GOOD CONSCIENCE STAND BY ANY LONGER THE CLINTON ADMINISTRATION HAS DEMONSTRATED A PARTICULAR WILLINGNESS TO GET INVOLVED IN AIRLINE INDUSTRY MATTERS MESSRS PENA AND REICH HAVE BEEN IN TOUCH WITH MANAGEMENT AND UNION LEADERS AT UAL CORP'S UNITED AIRLINES WHICH IS CONSIDERING GIVING THE UNIONS A MAJORITY STAKE IN EXCHANGE FOR CONCESSIONS OR SHEDDING FLIGHT AND MAINTENANCE OPERATIONS AND CONTRACTING OUT THOUSANDS OF JOBS SEPARATELY MR REICH SAID HE IS DOUBTFUL THAT CONGRESS WILL AGREE TO ANOTHER EXTENSION OF FEDERAL EMERGENCY UNEMPLOYMENT BENEFITS WHICH PROVIDE BENEFITS TO CERTAIN JOBLESS WORKERS AFTER THEIR REGULAR STATE BENEFITS EXPIRE AFTER A LENGTHY DEBATE OVER HOW TO FINANCE THE BENEFITS CONGRESS RECENTLY EXTENDED THE EMERGENCY BENEFITS TO FEB 5 MR REICH SAID HIS STAFF IS WORKING ON PROPOSALS TO IMPROVE THE UNEMPLOYMENT BENEFITS PROGRAM 9311300048 931130 COMPUTER GIANTS DUEL OVER OPERATING SYSTEMS IBM'S OS/2 IS MORE SUCCESSFUL THAN EXPECTED BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL COMING FROM THE COMPANY THAT SEEMINGLY COULDN'T DO ANYTHING RIGHT IN RECENT YEARS OS/2 A HIGHCOST OPERATING SYSTEM THAT HAS BEEN IN THE WORKS FOR A DECADE IS SHOWING SURPRISING SIGNS OF LIFE SALES OF THE SYSTEM WHICH REPRESENTS INTERNATIONAL BUSINESS MACHINES CORP'S BID TO BREAK THE MONOPOLY OF MICROSOFT CORP'S WINDOWS ARE FINALLY STARTING TO BUILD THE COMPANY SAYS OS/2 IS STEALING SOME POTENTIAL CUSTOMERS FROM WINDOWS NT MICROSOFT'S LATEST AND MOST ADVANCED SYSTEM IT'S GETTING RAVE REVIEWS FROM TECHIE MAGAZINES AND IT HAS WON SEVERAL TECHNICAL AWARDS OPERATING SYSTEMS CONTROL BASIC HOUSEKEEPING FUNCTIONS OF COMPUTERS AND OFTEN DETERMINE HOW OTHER SOFTWARE PROGRAMS LOOK AND FEEL TO THE USER MICROSOFT HAS HAD EVERYBODY CONVINCED THAT IBM WAS A COMPLETE KLUTZ WHEN IT CAME TO SOFTWARE DEVELOPMENT SAYS WILLIAM BLUESTEIN A CONSULTANT AT FORRESTER GROUP THEY'VE BEEN SHOCKED THAT OS/2 WORKS AND THAT IBM DELIVERED IT BUT OS/2'S GAINS HAVE COME AT A HIGH PRICE IBM IS BELIEVED TO HAVE SPENT MORE THAN 1 BILLION IN THE PAST 10 YEARS DEVELOPING OS/2 AND IT MAY NEVER EARN BACK THAT HUGE INVESTMENT WHILE IBM VOWS TO BUILD OS/2 INTO THE WORLD'S OPERATING SYSTEM OF CHOICE BY 1995 ITS GOAL SEEMS ALL BUT UNATTAINABLE GIVEN THAT WINDOWS ALREADY HAS 10 TIMES AS MANY USERS AND MUCH MORE AVAILABLE SOFTWARE AT BEST OS/2 MAY END UP IN A SPOILER ROLE THAT'S PARTLY BECAUSE IBM HAS FLIPFLOPPED ON STRATEGY PITCHING OS/2 AS BOTH AN IDEAL SYSTEM FOR HIGHERPOWER COMPUTERS THAT SERVE UP SOFTWARE TO OTHERS IN A NETWORK AND AS AN OPERATING SYSTEM FOR SMALLER COMPUTERS ITS SEPARATE POWERPC DIVISION IS SUPPORTING WINDOWS NT BUT ALSO CLAIMS TO SUPPORT OS/2 FURTHER MUDDLING MATTERS OS/2'S STRUGGLE SHOWS JUST HOW HARD IT IS FOR IBM TO RETURN TO THE DAYS WHEN IT SET THE STANDARDS FOR THE COMPUTING WORLD BIG BLUE IS PUSHING OS/2 DESPITE THE HIGH COSTS AND MICROSOFT'S DAUNTING LEAD BECAUSE THE SYSTEM OFFERS A SHOT AT CONTROLLING IBM'S OWN TECHNOLOGICAL DESTINY HOW FUTURE SOFTWARE WILL LOOK AND WORK RATHER THAN SURRENDERING IT TO MICROSOFT THERE'S A GIANT MARKETING BATTLE GOING ON IT'S A BATTLE FOR PRESTIGE AS WELL AS THE MARKET SAYS BRENT WILLIAMS AN ANALYST AT INTERNATIONAL DATA CORP MICROSOFT'S WINDOWS IS INSTALLED ON SOME 40 MILLION PERSONAL COMPUTERS IBM SAYS IT WILL HAVE SHIPPED FOUR MILLION COPIES OF OS/2 BY YEAREND AND THAT HALF OF THOSE WERE THE LATEST VERSION OF OS/2 INTRODUCED IN JUNE IT SAYS 75 OF SALES ARE TO NEW BUYERS INDICATING ITS MARKET IS EXPANDING BEYOND UPGRADES AND THAT IT IS WINNING CONVERTS IN SMALL BUSINESSES YET THE HUGE INSTALLED BASE FOR WINDOWS WHICH LETS USERS POINT TO SIMPLE POSTAGESTAMPSIZED ICONS TO CONTROL THEIR PCS MULTIPLIES EVERY MONTH AND SOFTWARE DEVELOPERS SEEING IBM'S RELATIVELY SMALL SALES CONTINUE TO WRITE PROGRAMS THAT RUN ON WINDOWS AND SPURN OS/2 LEAVING OS/2 USERS HUNGRY FOR SOFTWARE OR WRITING THEIR OWN A FEW BIG NAMES IN SOFTWARE SUCH AS LOTUS DEVELOPMENT CORP ARE WRITING PROGRAMS FOR OS/2 BUT WORDPERFECT CORP HAD WRITTEN AN OS/2 VERSION OF ITS FLAGSHIP PROGRAM AND IS NOW DISMANTLING THE EFFORT AND AT MICROGRAPHX INC WHICH WROTE TWO GRAPHICS PROGRAMS FOR OS/2 THAT DIDN'T SELL WELL OFFICIALS RECENTLY DECIDED THEY CAN'T AFFORD THE RISK OF WRITING FOR THE IBM PRODUCT OS/2 IS TRYING TO START FROM SCRATCH IN A WINDOWS MARKET SAYS STEVE BALLMER EXECUTIVE VICE PRESIDENT AT MICROSOFT HE SCOFFS AT IBM'S CLAIM OF FOUR MILLION IN SALES AND FIGURES THAT BASED ON SECONDQUARTER ROYALTY PAYMENTS BY IBM TO MICROSOFT NO MORE THAN ONE MILLION COPIES OF OS/2 ARE IN USE HE SAYS IBM PROBABLY HASN'T SHIPPED MORE THAN 25 MILLION COPIES WITH MOST OF THEM PRELOADED ON IBM PCS IBM IS A GENERATION BEHIND HE SAYS BUT OS/2 ALREADY PERFORMS SUCH MULTITASKING FEATS AS RECALCULATING A SPREADSHEET WHILE RUNNING VIDEO AND RECEIVING A FAX MICROSOFT WON'T HAVE MANY OF THE SAME CAPABILITIES ON ITS WIDELY USED WINDOWS PROGRAM UNTIL THE RELEASE CODENAMED CHICAGO SET FOR MID1994 ANY SUCCESS OS/2 ENJOYS FOLLOWS A LONG HISTORY OF FALSE STARTS AND DISAPPOINTMENTS ITS DEVELOPMENT ACTUALLY BEGAN AS A JOINT VENTURE OF IBM AND MICROSOFT IN FRIENDLIER DAYS BACK IN 1985 BUT THE TWO COMPANIES STRIKINGLY DIFFERENT IN STYLE AND CULTURE CLASHED OVER DIRECTION AND FINALLY SPLIT IN A PUBLIC AND PAINFUL DISAGREEMENT IN 1991 IBM CONTINUED TO POUR MILLIONS INTO BUILDING AN OPERATING SYSTEM THAT COULD WORK FASTER AND BETTER THAN MICROSOFT'S DOS THE UNDERLYING SYSTEM ON WHICH WINDOWS RELIES WITHOUT REQUIRING TOO MUCH POWER AND MEMORY THE FIRST RELEASE IN 1987 SHIPPED ONLY A MILLION COPIES AND WAS RIDDLED WITH BUGS A SECOND BIG RELEASE IN MARCH 1992 ALSO HAD BUGS AND DIDN'T PASS THE ONE MILLION MARK BIG BLUE TURNED THE CORNER WITH THE THIRD MAJOR VERSION LAST JUNE A SALVO OF ADS TOOK DIRECT AIM AT WINDOWS NT WHICH HADN'T COME OUT AND WAS RUNNING LATE THE ADS SAID NT WHICH STANDS FOR NEW TECHNOLOGY REALLY MEANT NOT THERE THE MESSAGE HAS WORKED FOR SOME CUSTOMERS AT AMERICAN EXPRESS CO'S INVESTORS DIVERSIFIED SERVICES UNIT PATRICIA MCILVENNA VISITED MICROSOFT'S REDMOND WASH BASE TO LOOK AT NT'S STRATEGY AND WENT AWAY CONVINCED IT WAS TOO BIG FOR HER NEEDS NOW IDS IS BUYING 14000 COPIES OF OS/2 TO SERVE AN 8000MEMBER SALES FORCE AND PLATOONS OF PLANNERS MS MCILVENNA IDS'S DIRECTOR OF STRATEGIC TECHNOLOGY PLANNING SAYS SHE LIKES OS/2'S BATTLE SCARS OS/2 IS READY STABLE AND UP AND RUNNING SHE SAYS WE NEEDED TO GET GOING TODAY SEE RELATED ARTICLE WINDOWS NT POSES CHALLENGES FOR MICROSOFT WSJ NOV 30 1993 OPERATING SYSTEM CONTENDERS OPERATING SYSTEMS CONSIST OF SOFTWARE THAT CONTROLS BASIC HOUSEKEEPING FUNCTIONS OF COMPUTERS THEY OFTEN DICTATE HOW OTHER PROGRAMS LOOK AND FEEL TO THE USER VITAL STATISTICS MICROSOFT WINDOWS INTRODUCED MAY 1990 CURRENT PRICE 149 UNIT SALES TO DATE 40 MILLION REPUTATION AN EASYTOLEARN VISUAL COMMAND SYSTEM FOR PCS WORKS WITH MORE THAN 10000 APPLICATION PROGRAMS DOESN'T FULLY EXPLOIT FEATURES OF 32BIT CHIPS BETTING LINE WILL CONTINUE AS DESKTOP FAVORITE UNTIL CHICAGO A MICROSOFT UPGRADE SLATED FOR LATE 1994 IBM OS/2 INTRODUCED APRIL 1987 CURRENT PRICE 249 UNIT SALES TO DATE 4 MILLION REPUTATION A RELIABLE 32BIT SYSTEM WITH AN IMPROVED INTERFACE RUNS WINDOWS APPLICATIONS WELL WEAK ON NETWORKING BETTING LINE NOW MAKING HEADWAY ON CORPORATE DESKTOPS BUT IS STILL WAY BEHIND MICROSOFT MICROSOFT WINDOWS NT INTRODUCED AUGUST 1993 CURRENT PRICE 495 UNIT SALES TO DATE 250000 REPUTATION GOOD FOR MULTIUSER SYSTEMS BECAUSE OF DATA SECURITY AND SUPPORT FOR MULTIPLE PROCESSORS SLOWER THAN OS/2 ON 16BIT WINDOWS PROGRAMS TAKES TOO MUCH MEMORY FOR MOST PCS BETTING LINE OFF TO A SLOW START BUT COULD BECOME A CORPORATE STANDARD IN TWO OR THREE YEARS 9311300047 931130 MCI TO MOVE SALES OFFICE WASHINGTON MCI COMMUNICATIONS CORP SAID IT WILL RELOCATE ITS SALES CENTER FOR SMALL BUSINESSES TO SUBURBAN BALTIMORE AND ADD 150 NEW JOBS AT THE OPERATION THE SALES CENTER WILL MOVE TO AIRPORT SQUARE AT BALTIMORE/WASHINGTON INTERNATIONAL AIRPORT IN BALTIMORE FROM TOWSON MD THE EXPANSION WILL INCREASE TO 400 THE NUMBER OF EMPLOYEES AT THE SMALLBUSINESS CENTER AND BOOST TO 5200 THE NUMBER OF MCI WORKERS IN THE WASHINGTONBALTIMORE AREA 9311300046 931130 HEARD ON THE STREET SNAG OVER MEDICAL CARE AMERICA MERGER PLAN HIGHLIGHTS CHANGES IN THE '90S TAKEOVER GAME BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL EVEN BIG SAVVY INVESTORS SOMETIMES MISS THE MARK WHEN IT COMES TO BETTING ON CHEAP STOCKS TAKE THE CASE OF MEDICAL CARE AMERICA A HEALTHCARE COMPANY WHOSE STOCK ATTRACTED SOME HEAVYWEIGHT VALUE INVESTORS AFTER ITS PRICE FELL FROM THE HIGH 50RANGE LAST FALL TO AROUND 17 IN EARLY OCTOBER THE LIST OF WELLKNOWN INVESTORS WHO ACCUMLATED BIG STAKES IN THE COMPANY INCLUDE INVESTMENT VEHICLES OF SID AND LEE BASS MUTUAL FUND INVESTOR MICHAEL PRICE FORMER GOLDMAN SACHS HONCHO LEON COOPERMAN AND INVESTMENT MANAGEMENT FIRM TWEEDY BROWNE AMONG OTHERS BUT YESTERDAY THESE BIGTIME INVESTORS' BEST HOPE FOR A QUICK PAYOFF MOVED ONE STEP FURTHER FROM BECOMING REALITY WHEN SURGICAL CARE AFFILIATES SAID THAT IF MEDICAL CARE DOES NOT AGREE TO A MEETING BY DEC 7 IT WILL WITHDRAW ITS OFFER TO EXCHANGE 1356 COMMON SHARES FOR EACH MEDICAL CARE SHARE IN A TRANSACTION VALUED AT NEARLY 1 BILLION A MEDICAL CARE SPOKESMAN SAID THE COMPANY DOES NOT SEE THAT THERE IS ANY BASIS FOR A MEETING THE DEVELOPMENT COULD MEAN A BUMPY RIDE AHEAD FOR MEDICAL CARE SHAREHOLDERS IF THERE IS NO DEAL THE STOCK HAS AN AIR POCKET BELOW IT SAYS JOHN HINDELONG AN ANALYST AT DONALDSON LUFKIN & JENRETTE SINCE THE MERGER PROPOSAL SURFACED THE STOCK HAS TRADED IN THE LOW 20S PRIOR TO THE OFFER IT TRADED AT AROUND 17 YESTERDAY MEDICAL CARE CLOSED AT 21 DOWN 3/4 IT PROBABLY CAME AS NO GREAT SURPRISE TO MOST INVESTORS THAT SURGICAL CARE IS BACKING AWAY FROM ITS MERGER PROPOSAL AFTER ALL MEDICAL CARE REJECTED THE UNINVITED OFFER ONLY DAYS AFTER RECEIVING IT LATER SAYING IT WOULD CONSIDER ONLY A MATERIALLY IMPROVED OFFER SURGICAL CARE HAS SAID IT DOESN'T INTEND TO BOOST ITS BID HOWEVER WHAT IS SURPRISING HOWEVER IS THAT THE HEAVYWEIGHT VALUE INVESTORS DESPITE THEIR BEST EFFORTS WERE UNABLE TO PRESSURE MEDICAL CARE'S MANAGEMENT INTO ACCEPTING THE SURGICAL CARE OFFER THE DEVELOPMENTS IN MEDICAL CARE'S STOCK OFFER A LESSON IN THE LIMITATIONS OF THE SOCALLED SHAREHOLDER RIGHTS MOVEMENT NOT TO MENTION A REMINDER THAT THE MERGER GAME OF THE 1990S IS QUITE DIFFERENT THAN THAT OF THE 1980S WHEN BIG INVESTORS WERE ABLE TO BET ON THE OUTCOME OF MERGER PROPOSALS WITH MORE CERTAINTY THE GROUP OF INVESTORS WHICH PURPORTS TO REPRESENT ABOUT 30 OF MEDICAL CARE'S STOCK FIRST MET IN NEW YORK IN MIDNOVEMBER TO MAP OUT ITS PLAN AMONG THOSE IN THE GROUP EACH CONTROLLING 5 OR MORE OF MEDICAL CARE STOCK WERE DAVID J GREENE & CO TWEEDY BROWNE & CO AND HEINE SECURITIES WHICH IS AN INVESTMENT FIRM CONTROLLED BY MICHAEL PRICE THERE WAS AN OUTCRY FROM ALL OF US SAID ALAN GREENE MANAGING PARTNER OF DAVID J GREENE MOST OF US CONTACTED MANAGEMENT AND ASKED WHAT WAS GOING ON HE SAID ON NOV 16 THE GROUP MET AT MEDICAL CARE'S DALLAS HEADQUARTERS WITH CHIEF EXECUTIVE DONALD STEEN WE ASKED STEEN HOW HE PLANNED ON GETTING THE SHARE PRICE IN THE 25 TO 27 RANGE IN THE NEAR TERM HIS ANSWER WAS THAT THE STOCK WOULD GET TO THAT LEVEL IN THE LONG RUN MR GREENE RELATES BUT THAT'S NOT GOOD ENOUGH MR GREENE ADDS THIS DEAL IS TAXFREE NONDILUTIVE AND THE WAY IT'S STRUCTURED IT IS IMMINENTLY FAIR MR STEEN SAYS HE AGREED AT THE MEETING WITH THE GROUP THAT HE WOULD TRY TO HELP THEM WITH MORE CONCRETE INFORMATION ON THE COMPANY'S PROSPECTS BUT HE SAYS THE COMPANY'S RESPONSE WAS NOT A KNEEJERK REACTION WE'VE TALKED ON AND OFF WITH SURGICAL CARE FOR FIVE OR SIX YEARS HE SAYS THE BOARD WAS DISINCLINED TO PURSUE THE SURGICAL CARE MERGER APPROACH HOWEVER BECAUSE THERE IS VERY LITTLE STRATEGIC OVERLAP MR STEEN SAYS NONETHELESS THE DISSIDENT SHAREHOLDER GROUP ISN'T GIVING UP ACCORDING TO MR GREENE WE'RE ENTITLED TO KNOW WHY THE COMPANY'S STRATEGIC PLAN IS BETTER HE SAYS THE DIRECTORS HAVE NOT DONE THEIR DUE DILIGENCE AND WE THINK IT'S PRETTY AWFUL HE SAYS THOUGH THE SHAREHOLDER GROUP MAY NOT SUCCEED IN PUSHING THROUGH THE SURGICAL CARE OFFER DONALDSON LUFKIN'S MR HINDELONG BELIEVES MEDICAL CARE EVENTUALLY WILL BE FORCED TO TAKE SOME ACTION TO RESTORE ITS SHARE PRICE INDEED THE COMPANY HAS HIRED DILLON READ TO EXAMINE ITS ALTERNATIVES THE PRESSURE IS GREAT ON THE BOARD TO DO SOMETHING HE SAYS AS A RESULT HE SAYS MEDICAL CARE'S STOCK MIGHT BE ATTRACTIVE AT AROUND 17 PARTICULARLY IF THE COMPANY'S FOURTHQUARTER RESULTS AREN'T DISAPPOINTING 9311300044 931130 BUSINESS BRIEF BOWATER INC JOB CUTS IN 1994 TO RESULT IN 1993 4THPERIOD CHARGE BOWATER INC SAID IT WILL ELIMINATE ABOUT 450 POSITIONS OR ABOUT 7 OF ITS WORK FORCE BY THE END OF 1994 RESULTING IN A ONETIME CHARGE TO 1993 FOURTHQUARTER EARNINGS AT THE SAME TIME THE NEWSPRINT MANUFACTURER IN GREENVILLE SC EXPECTS TO REPORT A ONETIME GAIN IN THE QUARTER FROM THE SALE OF PROPERTY BOWATER SAID THE CHARGE WILL TOTAL ABOUT 10 MILLION PRETAX OR ABOUT 17 CENTS A SHARE AFTER TAX BEFORE YESTERDAY'S ANNOUNCEMENT SECURITIES ANALYSTS HAD PROJECTED THAT BOWATER WOULD REPORT A LOSS OF AS MUCH AS 50 CENTS A SHARE IN THE FOURTH QUARTER BOWATER OFFICIALS WOULDN'T COMMENT ON ANALYSTS' ESTIMATES IN THE 1992 FOURTH QUARTER BOWATER REPORTED A NET LOSS OF 209 MILLION OR 59 CENTS A SHARE ON REVENUE OF 3989 MILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE BOWATER SHARES CLOSED AT 20 A SHARE UP 125 CENTS 9311300043 931130 ABREAST OF THE MARKET STOCKS FALL 615 TO 367780 TAKING CUE FROM WANING BOND RALLY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED LOWER AFTER A RALLY IN THE BOND MARKET PETERED OUT THE DOW JONES INDUSTRIAL AVERAGE LOST 615 POINTS TO 367780 STANDARD & POOR'S 500STOCK INDEX SANK 116 TO 46190 AND THE NASDAQ COMPOSITE INDEX TUMBLED 333 TO 75144 ADVANCING ISSUES TRAILED DECLINERS 1380 TO 1607 VOLUME ON THE NEW YORK STOCK EXCHANGE SWELLED TO 2701 MILLION SHARES FROM 901 MILLION SHARES DURING FRIDAY'S HOLIDAYSHORTENED TRADING SESSION STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST IN LOS ANGELES SAID STOCKS ARE TAKING THEIR CUE FOR NOW FROM THE FIXEDINCOME MARKET AND WHEN THE RALLY IN BONDS AND TREASURY BILLS FELL FLAT YESTERDAY STOCKS STARTED TO SLUMP THERE IS STILL A LINGERING CONCERN THAT THE FOURTHQUARTER GROSS DOMESTIC PRODUCT WILL BE TOO HOT TO HANDLE SAID MR ABRAMS AND THAT IS WEIGHING ON THE BOND MARKET THE LATEST BIT OF EVIDENCE HINTING AT A STRONG FOURTHQUARTER CAME YESTERDAY WHEN THE NATIONAL ASSOCIATION OF REALTORS REPORTED THAT SALES OF EXISTING SINGLEFAMILY HOMES IN THE US ROSE 36 IN OCTOBER FROM SEPTEMBER THOUGH STOCKS AND BONDS RALLIED INITIALLY ON A SHARP DROP IN OIL PRICES JITTERS ABOUT THE STRENGTH OF THE ECONOMY TUGGED BOND PRICES LOWER IN THE AFTERNOON PAVING THE WAY FOR LOSSES IN THE STOCK MARKET MR ABRAMS SAID THAT AS SOON AS INVESTORS START TO SEE SOME SIGNS OF STABILITY IN THE BOND MARKET STOCKS WILL BE POISED TO MOVE HIGHER THE RALLY IN EQUITIES WILL BE PACED BY STRONG CORPORATE PROFITS HE SAID GAIL DUDACK STOCK STRATEGIST AT SG WARBURG AGREES THAT THE PERFORMANCE OF THE BOND MARKET WILL BE KEY TO STOCKS IN THE COMING WEEKS AND WHILE MOST INVESTORS ARE LOOKING FOR THIS WEEK'S REPORT ON EMPLOYMENT BEFORE MAKING BIG BETS ON STOCKS OR BONDS MS DUDACK SAID SHE WILL BE EYEING TODAY'S REPORT ON CONSUMER CONFIDENCE LOOKING LONGERTERM CONSUMER CONFIDENCE HAS A LOT TO DO WITH INFLATIONARY TRENDS SHE SAID WHEN YOU HAVE A CONSUMER THAT LACKS CONFIDENCE YOU HAVE A VERY CONSERVATIVE VALUEDRIVEN CONSUMER MS DUDACK SAID THAT AS LONG AS CONSUMERS ARE CAUTIOUS COMPANIES WILL CONTINUE TO LACK PRICING POWER AN ELEMENT WHICH WILL HELP KEEP INFLATION LOW AIRLINE STOCKS AND OTHER TRANSPORTATION ISSUES SOARED AS OIL PRICES CONTINUED TO ERODE IN THE WAKE OF A DECISION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO LEAVE ITS PRODUCTION CEILING UNTOUCHED UAL THE PARENT OF UNITED AIRLINES GAINED 3 1/4 TO 148 1/4 DELTA AIR LINES 1/2 TO 59 1/8 SOUTHWEST AIRLINES 1 1/2 TO 35 FEDERAL EXPRESS 1 3/8 TO 68 3/4 AND XTRA 1 1/4 TO 45 3/4 THE GAINS HELPED PROPEL THE DOW JONES TRANSPORTATION AVERAGE 1710 POINTS HIGHER TO 175699 FALLING WITHIN STRIKING RANGE OF A NEW HIGH SOME OIL STOCKS WHICH WERE HIT HARD LAST WEEK AFTER OPEC'S MOVE REBOUNDED SOMEWHAT YESTERDAY EXXON ADDED 1/8 TO 61 7/8 AND CHEVRON 1/8 TO 85 5/8 BUT MANY OTHER OILRELATED ISSUES SLUMPED BAKER HUGHES STUMBLED 1 1/8 TO 19 7/8 AND SCHLUMBERGER 1 1/2 TO 57 YPF SOCIEDAD ANONIMA WAS ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD SINKING 1 1/4 TO 24 5/8 THE LOSSES CAME EVEN AS THE ARGENTINIAN OIL AND GAS COMPANY SAID IT ENTERED A DEFINITIVE AGREEMENT UNDER WHICH TOTAL AUSTRAL SA BRIDAS SAPIC AND DEMINEX ARGENTINA SA WILL EXPLORE AND DEVELOP'S YPF'S TIERRA DEL FUEGO OFFSHORE OIL AND GAS PROPERTIES YPF EXPECTS TO RECOGNIZE A NET GAIN OF ABOUT 200 MILLION DURING THE FOURTH QUARTER AS A RESULT OF THE AGREEMENT PARAMOUNT COMMUNICATIONS LOST 1 3/8 TO 78 1/2 QVC NETWORK AND VIACOM AGREED TO FREEZE THEIR COMPETING BIDS FOR PARAMOUNT DURING AN EXPECTED TWOWEEK APPEAL OF WEDNESDAY'S COURT ORDER THAT BLOCKED VIACOM FROM BUYING PARAMOUNT MOTOROLA SKIDDED 2 7/8 TO 93 1/4 THE COMPANY'S SHARES WERE HURT BY NEWS THAT GENERAL MOTORS' HUGHES AIRCRAFT UNIT HAS WON A CONTRACT VALUED AT NEARLY 400 MILLION TO PROVIDE CELLULARSWITCHING EQUIPMENT AND TECHNOLOGY FOR BELLSOUTH HUGHES DISCOUNTED HEAVILY TO DISLODGE ENTRENCHED PROVIDERS LIKE MOTOROLA GENERAL MOTORS' CLASS H SHARES WHICH REPRESENT THE OPERATIONS OF THE HUGHES BUSINESS CLIMBED 3/8 TO 36 3/4 QUALCOMM NASDAQ PLUNGED 4 1/2 TO 51 1/2 THE COMPANY SAID THAT ITS STOCK WAS HURT BY THE INCORRECT IMPRESSION THAT BELLSOUTH HAD ADOPTED A RIVAL TECHNOLOGY TO UPGRADE ITS ANALOG CELLULAR SYSTEM TO DIGITAL IN FACT BELLSOUTH HAS NOT YET STANDARDIZED ON A DIGITAL TECHNOLOGY OTHER COMMUNICATIONRELATED STOCKS WERE WEAK ON NASDAQ NEWBRIDGE NETWORKS PLUNGED 3 3/8 TO 50 5/8 AND DSC COMMUNICATIONS 3 FELL 7/8 TO 53 7/8 HARTEHANKS COMMUNICATIONS JUMPED 1 1/8 TO 16 3/8 GOLDMAN SACHS ADDED THE STOCK TO ITS RECOMMENDED LIST CABLETRON SYSTEMS RALLIED 4 TO 104 1/2 SAYING THAT THE STOCK IS AN EXCEPTIONAL VALUE NOW CS FIRST BOSTON ANALYST PAUL JOHNSON RAISED HIS FISCAL 1994 AND 1995 EARNINGS ESTIMATES FOR THE COMPANY TRW ROSE 3 3/4 TO 65 5/8 KIDDER PEABODY UPGRADED THE STOCK TO A STRONG BUY FROM NEUTRAL JENNY CRAIG SLID 1 1/4 TO 11 3/4 THE COMPANY SAID IT EXPECTS RESULTS FOR THE SECOND QUARTER ENDING DEC 31 TO BE SUBSTANTIALLY BELOW THE 68 MILLION IT EARNED IN THE YEARAGO PERIOD 9311300042 931130 POLITICS & POLICY NEW FCC HEAD VOWS TO PUSH GROWTH AND ACCESS TO COMMUNICATIONS INDUSTRY BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NEW CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION SAID THE TWO MAIN THEMES OF HIS TENURE WILL BE TO PROMOTE GROWTH IN THE COMMUNICATIONS SECTOR AND TO ASSURE ALL AMERICANS ACCESS TO TELECOMMUNICATIONS SERVICES REED HUNDT WHO WAS SWORN IN YESTERDAY BY HIS LONGTIME FRIEND VICE PRESIDENT AL GORE SAID TELEPHONE SERVICE IS SOMETHING EVERYONE OUGHT TO HAVE JUST LIKE EDUCATION OR FIRE AND POLICE PROTECTION BUT HE PUT EQUAL EMPHASIS ON NURTURING THE COMMUNICATIONS INDUSTRY TO CREATE JOBS AND HELP REVERSE DECLINES IN REAL WAGES THE GOALS REFLECT A NOMINEE IN THE CLINTON NEW DEMOCRAT MOLD ADVOCATING BOTH ECONOMIC GROWTH AND SOCIAL EQUITY AND SEEKING A COOPERATIVE RATHER THAN CONFRONTATIONAL RELATIONSHIP WITH BUSINESS MR HUNDT SAID HE WANTS THE COMMISSION TO BE A SOURCE OF ADVICE TO INDUSTRY CONGRESS AND THE CLINTON ADMINISTRATION ON A VAST ARRAY OF TECHNOLOGICAL AND ECONOMIC ISSUES I DO THINK I HAVE SOME EXPERTISE TO OFFER HERE AND I'M REALLY HAPPY THAT I'M GOING TO HAVE THE CHANCE SAID MR HUNDT AN ATTORNEY WHO HANDLED ANTITRUST MATTERS FOR THE WASHINGTON LAW FIRM OF LATHAM & WATKINS WAS AN AIDE TO MR GORE IN THE SENATE AND ADVISED THE CLINTON TRANSITION TEAM ON ECONOMIC POLICY HE SAID THERE NEED BE NO CONFLICT BETWEEN ANTITRUST POLICY AND EXPANSION OF THE COMMUNICATIONS SECTOR HANDLED CORRECTLY HE SAID ANTITRUST POLICY CAN PROMOTE COMPETITION AND ASSURE GROWTH IF GOVERNMENT GETS IT RIGHT WE CAN HAVE A TREMEMDOUS OPPORTUNITY FOR ECONOMIC GROWTH MR HUNDT SAID I WOULD LIKE THE COMMISSION TO STAND AS A SOURCE OF EXPERTISE A REPOSITORY OF KNOWLEDGE IN THIS AREA AND A WILLING MIDWIFE IN THIS PROCESS A CLASSMATE OF MR GORE'S IN GRADE SCHOOL AND OF THE CLINTONS' AT YALE LAW SCHOOL MR HUNDT 45 YEARS OLD SAID THE COMMISSION ALSO MUST STRIVE TO UNLEASH THE POWER OF PRIVATE CAPITAL AND ENCOURAGE INNOVATION SUCH AS DIGITAL TECHNOLOGY WHICH HE SAID HOLDS GREAT PROMISE TO SHRINK BARRIERS OF TIME AND DISTANCE MR HUNDT FACED LESS THAN TWO HOURS OF COMMITTEE HEARINGS BEFORE HIS CONFIRMATION WAS HELD UP NEARLY TWO MONTHS BY SENATE REPUBLICANS HE SAID IN AN INTERVIEW THAT HE SENSES GROWING SUPPORT IN CONGRESS AND THE TELECOMMUNICATIONS INDUSTRY FOR HIS MODERATE AGENDA CONGRESS IS HUNGRY FOR FCC ACTION WHEN MR HUNDT ARRIVES AT HIS OFFICE HE WILL FIND A LETTER SENT YESTERDAY BY SEN ERNEST HOLLINGS D SC AND 34 OTHER SENATORS URGING SWIFT REVIEW OF ANOTHER PRESSING ISSUE CABLETELEVISION RATE REGULATION DESPITE THE FCC'S BEST EFFORTS IT APPEARS THAT CONSUMERS ARE NOT BENEFITING FROM THE LEGISLATION AS MUCH AS CONGRESS INTENDED WROTE MR HOLLINGS CHAIRMAN OF THE SENATE COMMERCE COMMITTEE MR HUNDT SAID THE FCC WILL TAKE A FAIR BUT TOUGH STANCE WITH COMPANIES ACCUSED OF SKIRTING RATE REGULATION ALTHOUGH HE SAID HE'S VERY OPTIMISTIC ABOUT THE 1992 CABLE ACT MR HUNDT SAID THE FCC MUST WORK WITH LOCAL AUTHORITIES AND CONGRESS TO CLOSE LOOPHOLES AND ASSURE COMPETITION 9311300041 931130 JUSTICES TO RULE IF US CAN SUE LAWYERS FOR FAILURE TO DETECT FRAUD AT S&L BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER FEDERAL REGULATORS MAY SUE LAWYERS REPRESENTING A SAVINGS AND LOAN FOR FAILING TO DETECT ALLEGED FRAUD BY EXECUTIVES OF THE THRIFT THE CASE COULD AFFECT HUNDREDS OF PENDING AND POTENTIAL LAWSUITS BY THE GOVERNMENT RELATED TO FAILED S&LS AND BANKS THAT HAVE BEEN TAKEN OVER BY REGULATORS THE GOVERNMENT CURRENTLY IS PURSUING CLAIMS TOTALING MORE THAN 15 BILLION ACCORDING TO THE JUSTICE DEPARTMENT TARGETS OF THESE SUITS INCLUDE NOT ONLY LAWYERS OF FINANCIAL INSTITUTIONS BUT ALSO ACCOUNTANTS AND OTHER PROFESSIONAL ADVISERS WHEN TRYING TO MOP UP AFTER S&L FAILURES THE GOVERNMENT COMMONLY SUES OUTSIDE PROFESSIONALS AT LEAST IN PART BECAUSE THEY ARE OFTEN THE ONLY ONES ON THE SCENE WITH MUCH MONEY IN THEIR POCKETS THE JUSTICES SAID THEY WOULD REVIEW A DECISION BY THE FEDERAL APPEALS COURT IN SAN FRANCISCO THAT REINSTATED A GOVERNMENT SUIT AGAINST O'MELVENY & MYERS A LOS ANGELES LAW FIRM THE FEDERAL DEPOSIT INSURANCE CORP HAD SUED O'MELVENY OVER ITS WORK FOR AMERICAN DIVERSIFIED SAVINGS BANK A BIG COSTA MESA CALIF THRIFT THAT REGULATORS TOOK OVER IN 1986 REGULATORS ACCUSED O'MELVENY OF NEGLIGENCE IN PREPARING DOCUMENTS FOR AMERICAN DIVERSIFIED THAT WERE SENT TO POTENTIAL INVESTORS IN TWO REALESTATE OFFERINGS THE DOCUMENTS DIDN'T DISCLOSE THE THRIFT'S FINANCIAL DIFFICULTIES WHICH THE FDIC SAID WERE RELATED TO FRAUD BY AMERICAN DIVERSIFIED EXECUTIVES O'MELVENY SAID THAT IT WAS UNAWARE OF THE EXECUTIVES' OVERVALUATION OF THRIFT ASSETS AMONG OTHER ALLEGED MISDEEDS AND THAT AS THE S&L'S COUNSEL IT WASN'T OBLIGED TO DISCOVER AND DISCLOSE IT FOR ONE THING THE LAW FIRM ASSERTED IT WOULD HAVE HAD TO REPORT THE FINANCIAL DECEPTIONS TO THE EXECUTIVES ACCUSED OF PERPETRATING THEM A TRIAL JUDGE AGREED WITH O'MELVENY AND THREW OUT THE SUIT BUT THE APPEALS COURT SAID THAT THE LAW FIRM HAD A BROAD DUTY TO PROTECT THE PUBLIC AND ITS CLIENT THE S&L INCLUDING AN OBLIGATION TO SHIELD THE THRIFT FROM LIABILITY RELATED TO ALLEGED MISLEADING INVESTMENT OFFERINGS THE APPEALS COURT SAID THAT REGULATORS COULD SUE O'MELVENY TO RECOVER THE EXPENSE OF RESCINDING THE TWO OFFERINGS AN AMOUNT THE FDIC HAS PREVIOUSLY ESTIMATED AT 800000 THE COURT DIDN'T ADDRESS THE MERITS OF THE FDIC'S CLAIMS WHICH WOULD HAVE TO BE PROVED AT A TRIAL IN ITS APPEAL TO THE SUPREME COURT O'MELVENY STRESSED A TECHNICAL LEGAL ARGUMENT IT SAID THE THRIFT ITSELF WOULDN'T HAVE BEEN ABLE TO FILE A SUIT OF THIS SORT AGAINST ITS LAWYERS SO THE FDIC ACTING AS RECEIVER FOR THE S&L SHOULDN'T BE ALLOWED TO EITHER IN A SEPARATE CASE A FEDERAL APPEALS COURT BASED IN NEW ORLEANS ESSENTIALLY AGREED WITH O'MELVENY'S POSITION CREATING DISAGREEMENT AMONG THE LOWER COURTS THE JUSTICES PRESUMABLY DECIDED TO HEAR O'MELVENY'S APPEAL TO RESOLVE THE CONFLICT O'MELVENY & MYERS VS FEDERAL DEPOSIT INSURANCE CORP THE SUPREME COURT SAID IT WOULD CLARIFY THE FEDERAL COMMUNICATIONS COMMISSION'S AUTHORITY TO REDUCE CERTAIN REGULATORY REQUIREMENTS ON SMALLER LONGDISTANCE TELEPHONE COMPANIES AT ISSUE IS AN FCC RULE ALLOWING COMPETITORS OF THE DOMINANT AMERICAN TELEPHONE & TELEGRAPH CO TO OFFER RATES AND SERVICES NOT SPECIFIED IN PUBLIC FILINGS WITH THE AGENCY THE RULE WAS DESIGNED TO HELP COMPANIES SUCH AS MCI COMMUNICATIONS CORP CUT SPECIAL DEALS WITH CUSTOMERS AND COMPETE MORE VIGOROUSLY WITH AT&T WHICH HAS A 60 SHARE OF THE LONGDISTANCE MARKET AFTER AT&T OBJECTED THE FCC REVIEWED THE RULE BUT IN NOVEMBER 1992 DECIDED TO RETAIN IT THE COMMISSION CONCLUDED THAT THE RULE WOULD ENCOURAGE COMPETITION AND INCREASE THE VARIETY OF CARRIERS SERVICES AND PRICES AVAILABLE TO CUSTOMERS BUT THE FEDERAL APPEALS COURT IN WASHINGTON REVERSED THE FCC DETERMINATION SAYING THAT THE AGENCY HAD EXCEEDED ITS AUTHORITY TO MODIFY RATEFILING REQUIREMENTS ESTABLISHED BY FEDERAL STATUTE THE FCC AND MCI APPEALED THAT DECISION TO THE SUPREME COURT MCI TELECOMMUNICATIONS CORP VS AMERICAN TELEPHONE & TELEGRAPH CO US VS AMERICAN TELEPHONE & TELEGRAPH CO THE HIGH COURT SAID IT WOULD REENTER THE CONTROVERSY OVER HOW FAR GOVERNMENT MAY GO IN REGULATING PRIVATE PROPERTY FOR ENVIRONMENTAL RECREATIONAL OR AESTHETIC PURPOSES THE JUSTICES WILL CONSIDER THE CLAIM OF A TIGARD ORE HARDWARESTORE OWNER THAT A LOCAL LANDUSE REGULATION VIOLATED HER CONSTITUTIONAL RIGHT TO BE COMPENSATED FOR PROPERTY EFFECTIVELY CONFISCATED BY THE CITY TIGARD OFFICIALS SAID THAT TO GET A PERMIT TO BUILD A LARGER STORE FLORENCE DOLAN WOULD HAVE TO SURRENDER 10 OF HER 17ACRE PROPERTY THE CITY SAID THAT UNDER STATE AND LOCAL REGULATIONS SOME OF THE LAND HAD TO BE PRESERVED AS OPEN PUBLIC SPACE ALONG AN ADJACENT CREEK ANOTHER PORTION HAD TO BE USED TO CONSTRUCT A STORM DRAINAGE CHANNEL AND A PATH FOR PEDESTRIANS AND BICYCLERS THE CITY INSISTED AFTER FAILING TO GET A VARIANCE FROM THE REGULATIONS MS DOLAN LOST APPEALS IN OREGON STATE COURTS SHE APPEALED TO THE US SUPREME COURT ARGUING THAT THE CITY WANTED TO ACCOMPLISH ITS ENVIRONMENTAL GOALS AT HER EXPENSE IN DOING SO SHE ASSERTED TIGARD VIOLATED THE FIFTH AMENDMENT WHICH BANS GOVERNMENT FROM TAKING PRIVATE PROPERTY WITHOUT PAYING OWNERS JUST COMPENSATION THE SUPREME COURT AGREED TO DECIDE WHETHER A STATE MAY SET UP A SPECIAL PUBLIC SCHOOL FOR CHILDREN OF A TIGHTLY KNIT RELIGIOUS COMMUNITY THE CASE PROVIDES THE JUSTICES WITH AN OPPORTUNITY TO RECONSIDER THE BASIC PRINCIPLES GOVERNING INTERACTION BETWEEN GOVERNMENT AND RELIGION IT INVOLVES THE VILLAGE OF KIRYAS JOEL IN ORANGE COUNTY NY WHICH WAS FORMALLY INCORPORATED BY THE STATE IN 1977 AS A COMMUNITY FOR AN ORTHODOX JEWISH SECT KNOWN AS THE SATMAR HASIDS THE SECT SENDS MOST OF ITS CHILDREN TO PRIVATE RELIGIOUS SCHOOLS IN THE VILLAGE BUT SOME 200 DISABLED CHILDREN FROM THE VILLAGE ATTEND A PUBLIC SCHOOL ESTABLISHED WITHIN THE COMMUNITY THAT PROVIDES A SECULAR CURRICULUM AND NO RELIGIOUS INDOCTRINATION NEW YORK ENACTED A SPECIAL LAW IN 1989 CREATING THE UNUSUAL ARRANGEMENT AS A WAY TO ACCOMMODATE THE SATMAR HASIDS' DESIRE TO HAVE THEIR CHILDREN EDUCATED APART FROM NONHASIDS THE 1989 LAW WAS STRUCK DOWN BY NEW YORK'S TOP COURT AS A VIOLATION OF THE FIRST AMENDMENT PROVISION PROHIBITING OFFICIAL ESTABLISHMENT OF RELIGION THE NEW YORK COURT OF APPEALS BASED ITS RULING ON THE CONCLUSIONS THAT THE LAW'S PRIMARY EFFECT WAS TO ADVANCE RELIGION AND THAT THE PUBLIC SCHOOL IN KIRYAS JOEL CREATED AN IMPERMISSIBLE SYMBOLIC LINK BETWEEN THE STATE AND THE RELIGIOUS COMMUNITY THE STATE AND THE VILLAGE APPEALED TO THE US SUPREME COURT CONTENDING THAT PUBLIC SCHOOL IN KIRYAS JOEL IS A SECULAR INSTITUTION KIRYAS JOEL VILLAGE VS GRUMET 9311300040 931130 POLITICS & POLICY SEC SAYS EXOFFICIAL AT FIRST BOSTON SETTLED CHARGES ON RECORDS WASHINGTON THE FORMER HEAD OF FIRST BOSTON CORP'S DEVELOPINGCOUNTRY DEBT OPERATIONS AGREED TO SETTLE CHARGES THAT HE FALSIFIED RECORDS RELATED TO CERTAIN DERIVATIVE SECURITIES THE SECURITIES AND EXCHANGE COMMISSION SAID MICHAEL PETTIS NOW AN ANALYST WITH THE NEW YORKBASED WESTON GROUP NEITHER ADMITTED NOR DENIED THE ADMINISTRATIVE CHARGES BROUGHT BY THE SEC NEITHER MR PETTIS NOR HIS LAWYER COULD BE REACHED TO COMMENT MR PETTIS AGREED TO PAY A 25000 FINE AND CONSENTED TO A SIXMONTH SUSPENSION FROM ASSOCIATION WITH ANY SECREGULATED ENTITY IT WASN'T CLEAR WHETHER THE SUSPENSION WILL AFFECT MR PETTIS'S ROLE AT THE WESTON GROUP AN INVESTING AND TRADING FIRM SPECIALIZING IN LATIN AMERICA MR PETTIS WAS FIRED FROM HIS JOB AS MANAGING DIRECTOR OF FIRST BOSTON'S EMERGING COUNTRIES CAPITAL MARKETS GROUP IN JANUARY ACCORDING TO THE SEC FIRST BOSTON WHICH WASN'T ACCUSED OF ANY WRONGDOING DECLINED TO COMMENT ON THE MATTER THE SEC CHARGES RELATE TO DERIVATIVE SECURITIES OFFERED BY FIRST BOSTON IN CONNECTION WITH BONDS USED TO REFINANCE VENEZUELAN BANK DEBT THE SEC CHARGED THAT MR PETTIS KEPT SECRET HIS AGREEMENT TO REPURCHASE SOME OF THE SECURITIES FROM A BUYER THE DEAL WOULDN'T HAVE CLOSED IF THE BUYER HADN'T PARTICIPATED ACCORDING TO SEC ENFORCEMENT BRANCH CHIEF ERICH SCHWARTZ THE SEC ALSO CHARGED THAT MR PETTIS FALSIFIED OTHER RECORDS AT FIRST BOSTON RELATED TO THE SUBORDINATED PORTION OF THE SECURITIES IN THOSE ENTRIES MR PETTIS OVERSTATED THE VALUE OF THE COLLATERAL FOR THE SECURITIES THE SEC CHARGED 9311300039 931130 BUSINESS BRIEF SITHE ENERGIES INC DEAL TO SELL ELECTRICITY IS SET REVIVING FIGHT WITH UTILITY SITHE ENERGIES INC SAID IT REACHED AN AGREEMENT TO SELL ELECTRICITY TO A PLANNED PAPER RECYCLING MILL REVIVING A DISPUTE WITH NIAGARA MOHAWK POWER CORP SYRACUSE NY UNDER THE PLAN NEW YORKBASED SITHE WILL SELL 10000 KILOWATTS OF ELECTRICITY A YEAR ALONG WITH STEAM TO THE MILL FROM ITS 1000000KILOWATT INDEPENDENCE STATION COGENERATION PLANT SET FOR COMPLETION IN 1995 EARLIER THIS YEAR SITHE AN INDEPENDENT POWER PRODUCER REACHED AN AGREEMENT TO SELL STEAM AND ELECTRICITY FROM INDEPENDENCE TO A PLANT OWNED BY A UNIT OF ALCAN ALUMINIUM LTD MONTREAL THAT AGREEMENT PROMPTED NIAGARA MOHAWK TO FILE A PETITION WITH NEW YORK STATE REGULATORS PROTESTING THE SALE THE UTILITY ARGUES THE PLAN SHOULD BE SUBJECT TO APPROVAL BY STATE REGULATORS SITHE SAYS THAT UNDER FEDERAL REGULATIONS IT HAS THE RIGHT TO SELL THE POWER 9311300037 931130 BUSINESS BRIEF LINIUM TECHNOLOGY INC UNIT IS OFFERING TO ACQUIRE STAKES IN SUNSHINE JR STORES LINIUM TECHNOLOGY INC SAID ITS MFL HOLDINGS INC UNIT IS OFFERING TO ACQUIRE THE STAKES OF THE MAJORITY SHAREHOLDERS OF SUNSHINE JR STORES INC THE SHARES TO BE PURCHASED INCLUDE THOSE OF AMERICAN FINANCIAL CORP AND A FAMILY FOR AN UNDISCLOSED CASH AMOUNT A TOTAL OF 1293584 SUNSHINE SHARES REPRESENTING ABOUT 76 OF THE TOTAL OUTSTANDING ARE TO BE PURCHASED LINIUM SAID IN A NEWS RELEASE SUNSHINE JR SAID LINIUM'S ANNOUNCEMENT WAS UNAUTHORIZED AND BREACHES THE TERMS OF A CONFIDENTIALITY AGREEMENT SIGNED IN APRIL THE COMPANY SAID REPRESENTATIVES OF AMERICAN FINANCIAL AND THE LEWIS FAMILY THE MAJORITY HOLDERS OF SUNSHINE JR SAID THERE CONTINUES TO BE NO ACCEPTABLE OFFER BEFORE THEM INCLUDING FROM LINIUM MIAMIBASED LINIUM TECHNOLOGY OWNS A CHAIN OF SEAFOOD RESTAURANTS WHILE SUNSHINE OPERATES ABOUT 280 CONVENIENCE STORES AROUND THE SOUTHEAST IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE SUNSHINE JR CLOSED AT 650 DOWN 125 CENTS IN NASDAQ TRADING LINIUM CLOSED AT 106 A SHARE UP 1875 CENTS 9311300036 931130 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ON THE EVE OF USEUROPEAN COMMUNITY NEGOTIATIONS ON WORLD TRADE TALKS GERMAN OFFICIALS WILL USE A FRANCOGERMAN SUMMIT IN BONN STARTING TODAY TO REMIND FRANCE OF THE JOBCREATING POTENTIAL OF A DEAL TO LIBERALIZE GLOBAL TRADE GERMANY HAS BEEN CAREFUL NOT TO DISRUPT STRONG FRENCH TIES THAT HAVE BEEN AN EC LINCHPIN BUT GERMAN OFFICIALS SAID THEY WOULD EMPHASIZE TO FRANCE THE MUTUAL BENEFITS OF MEETING A DEC 15 DEADLINE FOR NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WITH EC JOB CREATION ONE OF THE MOST IMPORTANT TOPICS ON THE FRANCOGERMAN MEETING AGENDA GERMANY WANTS A GATT ACCORD FOR THE ECONOMIC STIMULUS IT WOULD PROVIDE TO RECESSIONMIRED ECONOMIES PRODDED BY THE US TO TAKE A CENTRAL ROLE IN THE EC DEBATE ABOUT GATT GERMAN DIPLOMATS FOR MONTHS HAVE QUIETLY LOBBIED FRANCE NOT TO SINK A WORLD ACCORD BECAUSE OF FRENCH OBJECTIONS TO LAST YEAR'S US FARMTRADE PACT WITH THE EC THE AVERAGE AGE OF JAPANESE CHIEF EXECUTIVES IS 70 BETWEEN 5 AND 10 YEARS BEYOND THE MANDATORY RETIREMENT AGE IN THE WEST A SURVEY FOUND A QUARTER OF THE LEADERS OF MAJOR COMPANIES IN BRITAIN AND GERMANY ARE YOUNGER THAN 50 ACCORDING TO THE SURVEY OF 100 COMPANIES IN JAPAN EUROPE AND THE US BY KORN/FERRY INTERNATIONAL RECRUITERS AND THE GERMAN MAGAZINE TOP BUSINESS IN A MEASURE OF CORPORATE LOYALTY 73 OF JAPANESE EXECUTIVES HAD WORKED AT ONLY ONE COMPANY COMPARED WITH JUST 25 IN FRANCE AFTER TRAIN WORKERS IN ITALY ENDED A TWODAY STRIKE SUNDAY MORE TRANSPORTATIONSECTOR WALKOUTS THIS WEEK COULD UPSET HIGHWAY AND AIR TRAFFIC A TWODAY STRIKE BY SERVICE STATION ATTENDANTS WAS TO START TODAY TO URGE ENFORCEMENT OF A PACT ON EARNINGS WITH OIL COMPANIES ALSO BEGINNING TODAY INDEPENDENT AIRLINE PILOTS WERE TO STAGE A TWODAY LABOR ACTION THAT MAY BE JOINED BY RADAR OPERATORS AFFECTING MOSTLY DOMESTIC FLIGHTS PILOTS WANT BETTER FRINGE BENEFITS METALWORKERS' UNIONS PLAN A STRIKE AND ROME RALLY FRIDAY TO PROTEST LAYOFFS BY AUTO AND STEEL COMPANIES THREEQUARTERS OF THE BRITISH PEOPLE DON'T INTEND TO USE THE RAIL TUNNEL UNDER THE ENGLISH CHANNEL WHEN IT OPENS NEXT YEAR AN OPINION POLL FOUND HALF THE RESPONDENTS FEARED THE TUNNEL WOULD PROVIDE A TARGET FOR GUERRILLA ATTACK OF THOSE POLLED FOR THE MINTEL MARKET INTELLIGENCE BUREAU 23 WERE OPEN TO USING THE TUNNEL WHILE 34 SAID THIS WASN'T LIKELY AND 41 VOWED TO STICK WITH ABOVEGROUND TRANSIT BUT MINTEL SAID THIS RELUCTANCE COULD CRUMBLE ONCE PASSENGER SERVICE BEGINS NEXT MAY TAIWAN ALLOWED SOME DOMESTIC INSURERS FOR THE FIRST TIME TO MAKE 30YEAR HOUSING LOANS THE EXPANSION IS AIMED AT BOOSTING INSURANCE COMPANIES' BUSINESS HOTLY COMPETITIVE WITH NEW DOMESTIC AND FOREIGN FIRMS COMMERCIAL BANKS MAY OFFER HOME LOANS FOR A MAXIMUM OF 20 YEARS THE LOWEST ANNUAL MORTGAGE LENDING RATE IN TAIWAN NOW STANDS AT 95 EFFECTIVE DEC 15 11 INSURERS MAY OFFER 750 MILLION OF MORTGAGE LOANS AT BANK INTEREST RATES VIETNAM RECEIVED APPROVAL FOR ASIAN DEVELOPMENT BANK LOANS OF 120 MILLION TO IMPROVE A 272MILE SECTION OF THE HIGHWAY BETWEEN HANOI IN THE NORTH AND HO CHI MINH CITY AND 65 MILLION TO PROVIDE THE SOUTHERN CITY OF 26 MILLION PEOPLE WITH A SAFE RELIABLE WATER SUPPLY THE ADB ALSO APPROVED A 19 MILLION TECHNICALASSISTANCE GRANT TO STRENGTHEN THE TRANSPORT MINISTRY AND 21 MILLION FOR A STUDY OF REHABILITATING A 1375MILE HIGHWAY BETWEEN LANG SON IN THE NORTH AND CA MAU IN THE SOUTH A FOURPROVINCE AREA THAT INCLUDES TWO EXPORTPROCESSING ZONES AND SITES FOR ABOUT HALF THE JOINT VENTURES AND FOREIGNOWNED ENTERPRISES IN VIETNAM UKRAINIAN CURRENCY TRADING SHIFTED TO THE BLACK MARKET TO AVOID THE EXCHANGE RATE IMPOSED LAST WEEK TO BATTLE AN ECONOMIC CRISIS AND RAMPANT INFLATION WHILE THE MINIMUM WAGE WAS TRIPLED DESPITE A SOARING BUDGET DEFICIT THE GOVERNMENT FIXED THE EXCHANGE RATE AT 15000 KARBOVANTSY TO THE US DOLLAR COMPARED WITH MARKET RATES OF ABOUT 26000 THIS ALSO HURT EXPORTERS REQUIRED TO SWAP AT LEAST HALF THEIR FOREIGNCURRENCY EARNINGS AT A 6900 RATE IN BELARUS THE GOVERNMENT APPROVED A CURRENCYSTABILIZATION PLAN TIGHTENING MONETARY POLICY AND URGING THE CENTRAL BANK TO BOOST ITS FOREIGNCURRENCY RESERVES LIKE MOST OTHER FORMER SOVIET REPUBLICS BELARUS IS REELING FROM INFLATION AND PLUNGING ECONOMIC OUTPUT IT WILL SLASH SUBSIDIZED CREDITS TO INDUSTRY THE EUROPEAN COMMUNITY GRANTED 51 MILLION TO HELP CONVERT MILITARY INDUSTRIES IN UKRAINE BELARUS AND RUSSIA FOR CIVILIAN OUTPUT AND MAINTAIN JOBS AND TECHNICAL CAPABILITIES OF 12 MILLION WORKERS IN THE FORMER USSR'S MILITARY COMPLEX 42 MAKE ARMS FOR WHICH MARKETS COLLAPSED GERMAN FARMERS BLOCKADED 22 DUTCH BORDER CROSSINGS HALTING TRAFFIC ALONG WITH PORK IMPORTS TO PROTEST FINANCIAL LOSSES FROM EUROPEAN COMMUNITY CURBS TO STOP THE SPREAD OF HOG CHOLERA FROM A GERMAN STATE BURMA KNOWN FOR ITS TROPICAL CLIMATE UNVEILED PLANS TO BUILD SKI RESORTS ON PEAKS ALONG ITS NORTHERN BORDERS WITH CHINA AND INDIA THE MILITARY GOVERNMENT HAS PROMOTED TOURISM RECENTLY BY EASING VISA REQUIREMENTS AND TRAVEL RESTRICTIONS 9311300035 931130 BUSINESS BRIEF WESTERN PUBLISHING GROUP INC COMPANY RETAINS ADVISERS AFTER INQUIRIES FROM FIRMS WESTERN PUBLISHING GROUP INC NEW YORK SAID IT HIRED INVESTMENT BANKERS FOLLOWING INQUIRIES ABOUT A POSSIBLE BUSINESS COMBINATION WITH THE COMPANY WESTERN PUBLISHING WHICH PUBLISHES CHILDREN'S AND YOUNG ADULTS' BOOKS AND PROVIDES COMMERCIALPRINTING SERVICES SAID IT HAS BEEN APPROACHED BY SEVERAL COMPANIES BUT DID NOT ELABORATE THE COMPANY SAID IT HAS RETAINED BEAR STEARNS & CO AND MORGAN STANLEY INC TO EXPLORE ALTERNATIVES THE COMPANY'S SENIOR DEBT WAS RECENTLY DOWNGRADED DUE TO CONCERNS ABOUT ITS EXPANSION PLANS STANDARD & POOR'S CORP SAID EARLIER THIS MONTH THAT IT DECIDED TO DOWNGRADE WESTERN PUBLISHING'S SENIOR NOTES AFFECTING 150 MILLION OF DEBT DUE TO THE COMPANY'S ADHERENCE TO ITS EXPANSION PLAN DESPITE SIGNIFICANT NEGATIVE CASH FLOW TRADING IN WESTERN'S SHARES ON THE NASDAQ STOCK MARKET WAS HALTED PRIOR TO THE ANNOUNCEMENT THE SHARES LAST TRADED AT 1250 UNCHANGED ON VOLUME OF 239600 SHARES FOR THE DAY MORE THAN TWICE THE AVERAGE VOLUME OF 104000 SHARES 9311300034 931130 INTERNATIONAL DISCOVERY OF BODY ARREST IN BANGKOK TEST BRAZIL'S RESOLVE IN GRAFT SCANDALS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO AN ARREST IN BANGKOK AND THE DISCOVERY OF A BODY NEAR BRASILIA HAVE THICKENED THE PLOT OF BRAZIL'S TWO BIG CORRUPTION SCANDALS AND WILL PROVIDE A KEY TEST OF AUTHORITIES' RESOLVE TO FIGHT GRAFT THE DISCOVERY OF THE BODY OF A POLITICIAN'S WIFE ON SUNDAY AND THE ALLEGATION THAT HER HUSBAND ORDERED HER DEATH HAVE TURNED THE CONGRESSIONAL FRAUD AND KICKBACK SCANDAL INTO A SORDID CRIME STORY THAT THREATENS TO DERAIL ATTENTION FROM THE GRAFT ISSUE JOSE CARLOS ALVES DOS SANTOS A FORMER DIRECTOR OF BRAZIL'S BUDGET DEPARTMENT TOUCHED OFF THE SCANDAL LAST MONTH POLICE SUSPECTING HIM OF BEING INVOLVED IN THE DISAPPEARANCE OF HIS WIFE ANA ELIZABETH LOFRANO DOS SANTOS A YEAR AGO RAIDED HIS HOME AND FOUND OVER 1 MILLION IN CASH HE DENIED ANY LINK TO HIS WIFE'S DISAPPEARANCE BUT CONFESSED TO BEING PART OF A CONGRESSIONAL CORRUPTION RING HE IMPLICATED 26 CONGRESSMEN THREE GOVERNORS THREE FORMER MINISTERS TWO CURRENT ONESONE OF WHOM HAS SINCE RESIGNED AND EIGHT CONSTRUCTION COMPANIES IN THE SCHEME ON SATURDAY A PRIVATE DETECTIVE AND A MECHANIC WHO HAD BEEN ARRESTED THAT WEEK IN CONNECTION WITH HER DISAPPEARANCE SAID MR DOS SANTOS PAID THEM 100000 TO KILL HIS WIFE AND DISGUISE THE MURDER AS A KIDNAPPING ATTEMPT UNDER A PLAN ALLEGEDLY ARRANGED WITH MR DOS SANTOS THE TWO SAID THEY INTERCEPTED MR DOS SANTOS'S CAR AFTER HE AND HIS WIFE DROVE HOME FROM A BRASILIA RESTAURANT MR DOS SANTOS ALLEGEDLY HELPED THEM GAG AND TIE HIS WIFE SHE WAS DRIVEN TO A FIELD 372 MILES OUTSIDE BRASILIA STRUCK WITH A PICKAX AND BURIED APPARENTLY ALIVE IN A PREDUG GRAVE MR DOS SANTOS RETURNED HOME AND CLAIMED HE HAD ESCAPED FROM THE KIDNAPPERS BUT HIS WIFE HAD VANISHED WITH THEM AFTER THE BODY WAS RECOVERED SUNDAY MR DOS SANTOS TRIED TO KILL HIMSELF IN HIS JAIL CELL BY SLASHING HIS WRIST AND OVERDOSING ON BLOODPRESSURE MEDICINE THE LATEST TWISTS INVOLVING MR DOS SANTOS THROW INTO DOUBT THE CONGRESSIONAL INVESTIGATION HIS DENUNCIATIONS SET OFF NOTWITHSTANDING THE FACT THAT HE ACCUSED ANOTHER 16 MEMBERS OF PARLIAMENT IN A LETTER HE LEFT BEFORE HIS SUICIDE ATTEMPT MANY OF THOSE HE HAD PREVIOUSLY NAMED DECLARED YESTERDAY THAT THE MURDER ACCUSATIONS AND SUICIDE ATTEMPT DEMOLISHED HIS CREDIBILITY JOAO ALVES A DEPUTY ACCUSED OF BEING THE SCHEME'S RINGLEADER SAID THE SERIOUSNESS OF THE CONGRESSIONAL INVESTIGATIVE COMMITTEE'S FINDINGS WAS GRAVELY COMPROMISED MR ALVES HAD CLAIMED THAT THE MILLIONS OF DOLLARS THAT WENT THROUGH HIS BANK ACCOUNTS WERE THE RESULTS OF OVER 400 WINNING LOTTERY TICKETS THE COMMITTEE'S PRESIDENT SEN JARBAS PASSARINHO SAYS THE PANEL HAS AMASSED UNIMPEACHABLE EVIDENCE OF FRAUD AND KICKBACKS THE FACT THAT JOSE CARLOS IS A BANDIT DOESN'T INVALIDATE WHAT WE HAVE VERIFIED HE SAID MEANWHILE PAULO CESAR FARIAS THE ALLEGED MASTERMIND OF THE INFLUENCEPEDDLING RING WHOSE DISCOVERY BROUGHT DOWN PRESIDENT FERNANDO COLLOR DE MELLO LAST YEAR WAS ARRESTED IN A LUXURY HOTEL IN BANGKOK HE APPARENTLY WAS RECOGNIZED BY A BRAZILIAN GUEST BRAZILIAN AUTHORITIES HAVE REQUESTED HIS DEPORTATION AND DESPITE THE ABSENCE OF AN EXTRADITION TREATY HOPE HE WILL BE RETURNED FOR OVERSTAYING HIS 15DAY VISA MR FARIAS HAD BEEN ON THE RUN SINCE LATE JUNE WHEN A BRASILIA JUDGE ORDERED HIS PREVENTIVE ARREST THE APPARENT EASE WITH WHICH HE ESCAPED HAD RAISED QUESTIONS ABOUT BRAZIL'S WILL TO BRING THE CASE TO TRIAL 9311300033 931130 BUSINESS BRIEF INTERNATIONAL GAMING MANAGEMENT FINAL AGREEMENT IS REACHED TO ACQUIRE SCHILLING CASINO INTERNATIONAL GAMING MANAGEMENT INC MINNEAPOLIS SAID IT REACHED A DEFINITIVE AGREEMENT TO ACQUIRE PRIVATELY HELD SCHILLING CASINO CORP OF MISSISSIPPI FOR 475 MILLION AND 17 MILLION SHARES OF ITS COMMON STOCK THE TRANSACTION IS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING FINANCING AND MISSISSIPPI GAMING COMMISSION APPROVALS IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY INTERNATIONAL GAMING SHARES REACHED 7375 UP 25 CENTS AT THAT PRICE THE SHARES INTERNATIONAL GAMING IS ISSUING ADDS 125 MILLION TO THE VALUE OF THE DEAL 9311300032 931130 TECHNOLOGY & HEALTH AMERICAN SUPERCONDUCTOR ACHIEVES MILESTONE WITH SUPERCONDUCTING CABLE BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN SUPERCONDUCTOR CORP EXPECTS TO ANNOUNCE TODAY THAT IT HAS ACHIEVED A MILESTONE IN EXPERIMENTS WITH ELECTRICITY TRANSMISSION USING HIGHTEMPERATURE SUPERCONDUCTORS ITS PRESIDENT SAID IN AN INTERVIEW GREGORY J YUREK PRESIDENT AND CHIEF EXECUTIVE OF THE WESTBOROUGH MASS COMPANY SAID IT HAS DEMONSTRATED TRANSMISSIONS OF 2300 AMPS OF DIRECT CURRENT OVER A CABLE ONE METER LONG 394 INCHES THE INDUSTRYFUNDED ELECTRIC POWER RESEARCH INSTITUTE HAS SAID TRANSMISSION OF MORE THAN 2000 AMPS WOULD MAKE IT ECONOMICALLY FEASIBLE TO REPLACE EXISTING UNDERGROUND CABLES WITH SUPERCONDUCTING CABLES OF THE SAME SIZE THAT COULD CARRY MORE THAN TWICE AS MUCH POWER PREVIOUSLY THE COMPANY'S BEST TRANSMISSION WAS 1100 AMPS DR YUREK SAID THE EXPERIMENTS DEMONSTRATE THAT HIGHTEMPERATURE SUPERCONDUCTING WIRES CAN AND WILL ACHIEVE THE ELECTRICAL PERFORMANCE REQUIRED FOR COMMERCIAL APPLICATIONS BY 1997 HE CAUTIONED THAT MUCH REMAINS TO BE DONE TO SCALE UP TO THE ONEKILOMETERLONG INSULATED CABLE THAT UTILITIES SAY IS NEEDED HE SAID AMERICAN SUPERCONDUCTOR'S PILOT MANUFACTURING LINE HAS PRODUCED SUPERCONDUCTING WIRES OF UP TO 600 METERS AND EXPECTS TO REACH 1000 METERS OR ONE KILOMETER BY SPRING IN THE EXPERIMENT AMERICAN SUPERCONDUCTOR SCIENTISTS WERE ABLE TO ACHIEVE THE TRANSMISSION IN WIRES AT A TEMPERATURE OF 77 KELVINS OR MINUS 321 DEGREES FAHRENHEIT THAT TEMPERATURE IS EASILY ACHIEVED BY COOLING THE WIRES WITH LIQUID NITROGEN A READILY AVAILABLE SUBSTANCE THAT COSTS LESS THAN MILK DR YUREK SAID HE SAID THE ACHIEVEMENT PLACES AMERICAN SUPERCONDUCTOR NECK AND NECK WITH JAPAN'S SUMITOMO ELECTRIC INDUSTRIES LTD IN THE RACE TO DEVELOP AN ECONOMICALLY VIABLE WAY TO USE SUPERCONDUCTORS TO TRANSMIT ELECTRICITY IN UNDERGROUND UTILITY LINES THE LIQUID NITROGEN WOULD REPLACE THE OIL NOW USED TO COOL TRANSMISSION LINES AND THE BISMUTHBASED SUPERCONDUCTING WIRE WOULD REPLACE EXISTING COPPER CABLE AMERICAN SUPERCONDUCTOR IS WORKING WITH PIRELLI CABLE SPA OF ITALY WHICH IS COMPETING FOR A 5 MILLION DEVELOPMENT CONTRACT TO BE AWARDED BY THE ELECTRIC POWER RESEARCH INSTITUTE AN INDUSTRYFUNDED CONSORTIUM THE INSTITUTE SAYS UTILITIES WANT TO RETROFIT MANY OF THEIR AGING URBAN UNDERGROUND CABLES WHICH TYPICALLY CARRY 1100 AMPS USE OF HIGHTEMPERATURE SUPERCONDUCTORS WOULD PERMIT UTILITIES TO DOUBLE THEIR CAPACITY WITHOUT HAVING TO DIG NEW TRENCHES THE 2300AMP LEVEL ALSO WOULD EQUAL OVERHEAD TRANSMISSION LINES MEANING THAT A SINGLE CABLE RATHER THAN TWO COULD BE LAID UNDERGROUND TO REPLACE THE ENVIRONMENTALLY CONTROVERSIAL LINES IN DENSELY POPULATED AREAS MR YUREK SAID THAT IF PIRELLI IS ABLE TO MANUFACTURE CABLE USING AMERICAN SUPERCONDUCTOR'S TECHNOLOGY AND IF TRIALS GO WELL UTILITIES COULD BEGIN INSTALLING SUPERCONDUCTING UNDERGROUND CABLE BY 1997 IN NASDAQ STOCK EXCHANGE TRADING YESTERDAY AMERICAN SUPERCONDUCTOR SHARES ROSE 225 OR 85 TO 2875 IN THE FISCAL SIX MONTHS ENDED SEPT 30 THE COMPANY REPORTED A NET LOSS OF 26 MILLION OR 48 CENTS A SHARE ON REVENUE OF 18 MILLION 9311300031 931130 BUSINESS BRIEF JENNY CRAIG INC SLUMP IN RESULTS EXPECTED PRESIDENT QUITS STOCK SAGS JENNY CRAIG INC SAID IT EXPECTS CURRENTQUARTER FINANCIAL RESULTS TO BE SUBSTANTIALLY LOWER THAN A YEAR AGO AND ANNOUNCED THE SUDDEN DEPARTURE OF ITS PRESIDENT AND CHIEF OPERATING OFFICER THE ANNOUNCEMENT SENT THE DEL MAR CALIF COMPANY'S STOCK TUMBLING 96 OR 125 A SHARE TO CLOSE AT 1175 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE PURVEYOR OF WEIGHTLOSS PROGRAMS SAID ALBERT J DIMARCO 49 YEARS OLD WHO ONCE HEADED COMPETITOR NUTRI/SYSTEM INC WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF JENNY CRAIG SUCCEEDING RONALD E GEREVAS 54 MR GEREVAS WHO JOINED JENNY CRAIG IN 1991 COULDN'T BE REACHED THE COMPANY SAID HE LEFT TO RETURN TO THE EXECUTIVESEARCH BUSINESS JENNY CRAIG ATTRIBUTED THE PROSPECTIVE SLUMP IN FINANCIAL RESULTS IN THE CURRENT DEC 31 FISCAL SECOND QUARTER TO LOWER NEWCLIENT ENROLLMENTS A SPOKESMAN DECLINED TO ELABORATE IN THE YEARAGO SECOND PERIOD JENNY CRAIG HAD NET INCOME OF 68 MILLION OR 25 CENTS A SHARE ON REVENUE OF 1199 MILLION 9311300030 931130 BUSINESS BRIEF BELL ATLANTIC CORP SIXMONTH TRIAL IS PLANNED OF VIDEO SERVICE ON DEMAND BELL ATLANTIC CORP PLANS TO OFFER MOVIES TV RERUNS AND OTHER VIDEO SERVICES ON DEMAND TO 2000 HOMES IN VIRGINIA IN A SIXMONTH TRIAL STARTING IN MARCH THE REGIONAL BELL COMPANY BASED IN PHILADELPHIA HAD TESTED THE DELIVERY TECHNOLOGY FOR THE VIDEO SERVICE SINCE LAST YEAR THE NEW TEST WILL USE THE TECHNOLOGY TO TRANSMIT VIDEO PROGRAMMING TO HOMES OVER EXISTING PHONE LINES IF BELL ATLANTIC RECEIVES THE REQUIRED APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION DURING THE MARKET TRIAL CUSTOMERS WILL BE CHARGED AN UNDETERMINED RATE FOR SERVICES BELL ATLANTIC HOPES TO START SELLING ITS SOCALLED VIDEO DIAL TONE SERVICES COMMERCIALLY BY NEXT FALL THE COMPANY SAID ITS BELL ATLANTIC VIDEO SERVICES UNIT WILL PARTICIPATE AS A PROGRAMMER IN THE TRIAL WHICH WILL BE RUN BY SIBLING UNIT C&P TELEPHONE CO THE LIBRARY OF CONGRESS IS EXPECTED TO BE ANOTHER PROGRAMMER PROVIDING RESEARCH MATERIALS 9311300029 931130 BUSINESS BRIEF BETHLEHEM STEEL CORP UNIT RECEIVES PIPE ORDER OF MORE THAN 20 MILLION BETHLEHEM STEEL CORP SAID ITS PENNSYLVANIA STEEL TECHNOLOGIES INC UNIT RECEIVED AN ORDER FOR NEARLY 50000 TONS OF PIPE FROM FLORIDA GAS TRANSMISSION CO A JOINT VENTURE OF ENRON CORP AND SONAT INC THE ORDER IS WORTH MORE THAN 20 MILLION AND WILL BE FILLED BY EARLY NEXT YEAR PENNSYLVANIA STEEL SAID THE PIPE WILL BE USED TO EXTEND A GAS LINE BY 113 MILES SO IT REACHES HOMESTEAD FLA SOUTH OF MIAMI THE LINE NOW BEGINS IN HIDALGO COUNTY IN SOUTHERN TEXAS AND ENDS IN LOUISIANA THE EXTENSION WILL ADD 530 MILLION CUBIC FEET A DAY OF NATURAL GAS TO THE FLORIDA MARKET ENERGY COMPANIES ENRON AND SONAT ARE BASED IN HOUSTON AND BIRMINGHAM ALA RESPECTIVELY BETHLEHEM STEEL IS BASED IN BETHLEHEM PA 9311300028 931130 HOGAN PACT WITH FFC NATIONAL DALLAS HOGAN SYSTEMS INC SAID IT AGREED WITH FIRST CHICAGO CORP UNIT FFC NATIONAL BANK FIRST CARD FOR LICENSING OF HOGAN'S CREDITCARD SOFTWARE AND RELATED SERVICES TERMS WEREN'T DISCLOSED HOGAN SAID FIRST CARD WILL USE HOGAN'S CONSUMER AND MERCHANT SERVICING SYSTEM TO SUPPORT FIRST CARD'S MARKETING OBJECTIVES AND MISSION CRITICAL OPERATIONS HOGAN SAID THE CONTRACT WHICH SHOULD GENERATE SIGNIFICANT SOFTWARE AND SERVICES REVENUE OVER THE NEXT 24 MONTHS INCLUDES MODULES OF ITS INTEGRATED BANKING APPLICATIONS AND PROFESSIONAL SERVICES 9311300027 931130 BUSINESS BRIEF INTELLIGENT ELECTRONICS INC FISCAL 3RDPERIOD NET INCOME REVERSED YEAREARLIER LOSS INTELLIGENT ELECTRONICS INC EXTON PA SAID STRONGER CONSUMER DEMAND AND LOWER COSTS ON THE OPERATIONS SIDE PUSHED UP NET INCOME FOR ITS FISCAL THIRD QUARTER ENDED OCT 30 TO 109 MILLION OR 30 CENTS A SHARE FROM A NET LOSS OF 24 MILLION OR SIX CENTS A SHARE A YEAR EARLIER THE PREVIOUS YEAR'S QUARTER INCLUDED A LOSS OF 8 MILLION OR 21 CENTS A SHARE FROM DISCONTINUED OPERATIONS THE COMPANY SAID IT CUT SALES GENERAL AND ADMINISTRATIVE COSTS AS A PERCENTAGE OF SALES IN THE QUARTER TO 19 FROM 22 A YEAR EARLIER THE COMPUTER RETAILER AND RESELLER SAID REVENUE LEAPED 40 TO 6759 MILLION FROM 4841 MILLION A SPOKESWOMAN ATTRIBUTED THE GAIN TO PRICE CUTS BY LEADING COMPUTER MAKERS THAT BOOSTED CONSUMER DEMAND AS THE COMPANY INCREASED TO MORE THAN 1800 THE NUMBER OF DEALERS TO WHICH IT DISTRIBUTES 9311300026 931130 KENDALL SQUARE TO RESTATE '92 RESULTS SUPERCOMPUTER FIRM'S STOCK FALLS 33 BY WILLIAM M BULKELEY AND JOSEPH PEREIRA STAFF REPORTERS OF THE WALL STREET JOURNAL WALTHAM MASS KENDALL SQUARE RESEARCH CORP SAID IT EXPECTS TO RESTATE ITS 1992 RESULTS WITH SUBSTANTIAL DOWNWARD REVISIONS AFTER AUDITORS PRICE WATERHOUSE & CO WITHDREW SUPPORT FOR THE ACCURACY OF THE FIGURES IN NASDAQ STOCK MARKET TRADING KENDALL SHARES PLUMMETED 375 OR 33 TO 750 KENDALL SAID THAT INTERNAL AND OUTSIDE ACCOUNTANTS WERE EXAMINING WHETHER THE COMPANY BOOKED AS SALES 1992 SUPERCOMPUTER DELIVERIES TO UNIVERSITIES THAT DIDN'T HAVE ADEQUATE FUNDING TO MAKE PAYMENT KENDALL PREVIOUSLY SAID IT WOULD REPORT A THIRDQUARTER LOSS AND THAT IT WILL RESTATE UNAUDITED RESULTS FOR THE FIRST TWO QUARTERS OF THE YEAR AS WELL BEFORE THE COMPANY FORECAST ITS THIRDQUARTER LOSS IN LATE OCTOBER ITS STOCK TRADED AT 2425 A SHARE PRICE WATERHOUSE AUDITORS ARE WITHDRAWING THEIR REPORT ON KENDALL'S 1992 FINANCIAL STATEMENTS KENDALL SAID MEANING INVESTORS SHOULDN'T RELY ON THE FIGURES KENDALL SAID IT EXPECTS ADJUSTMENTS TO BE SUBSTANTIAL PRICE WATERHOUSE DECLINED COMMENT THE EXPANSION OF THE RESTATEMENT TO LAST YEAR WILL LIKELY OPEN A PREVIOUSLY FILED SHAREHOLDERS LAWSUIT TO PEOPLE WHO BOUGHT STOCK EARLIER THIS YEAR KENDALL SOLD 28 MILLION COMMON SHARES IN APRIL AND THE PROSPECTUS WAS AUDITED AS WAS THE ANNUAL REPORT FOR LAST YEAR KENDALL SAID THAT IT EXPECTS TO PROVIDE ESTIMATES OF THE RESTATEMENTS THIS WEEK IT PREVIOUSLY HAD PLANNED TO PROVIDE ACTUAL THIRDQUARTER RESULTS BY THEN IN THE YEAR ENDED DEC 26 1992 KENDALL REPORTED A NET LOSS OF 127 MILLION OR 122 A SHARE ON REVENUE OF 207 MILLION IT SAID IT BECAME PROFITABLE FOR THE FIRST TIME IN THE FOURTH QUARTER WITH NET INCOME OF 6000 ON REVENUE OF 112 MILLION IT REPORTED GROWING REVENUE AND PROFITS IN EACH OF THE FIRST TWO QUARTERS THIS YEAR CHARLES T CASALE VICE PRESIDENT INVESTOR RELATIONS SAID THE PROBLEMS INVOLVE REVENUE RECOGNITION ISSUES HE SAID SOME OF THE PROBLEMS BEING INVESTIGATED BY AUDITORS AND KENDALL'S OWN ACCOUNTANTS INVOLVE BOOKING OF SALES TO UNIVERSITIES COMPUTERS MIGHT HAVE BEEN SHIPPED AND REVENUE RECOGNIZED BEFORE THE UNIVERSITIES HAD SUFFICIENT FUNDING TO PAY FOR THE MACHINES WHICH OFTEN COST OVER 1 MILLION EACH HOWARD SCHLIRT AN ASSOCIATE PROFESSOR OF ACCOUNTING AT AMERICAN UNIVERSITY IN WASHINGTON DC NOTED THAT THE CHANGE IN KENDALL'S ACCOUNTING FOLLOWS A CHANGE IN AUDIT PARTNERS AT PRICE WATERHOUSE EARLIER THIS YEAR IF IT WAS A NEW AUDITING FIRM THAT WOULD BE DIFFERENT THIS IS LIKE PRICE WATERHOUSE CRITICIZING ITSELF JEFFREY CANIN AN ANALYST WITH SALOMON BROTHERS WHO FOLLOWS KENDALL SAID THE OUTLOOK GOING FORWARD IS CLOUDIER BECAUSE OF THESE EVENTS MANAGEMENT TIME WILL BE ABSORBED RESOLVING THIS AND A NUMBER OF CUSTOMERS WILL WANT TO WAIT AND SEE BEFORE ORDERING A COMPUTER 9311300025 931130 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED NOV 26 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER OAK VIEW SANITARY DISTRICT WILL REDEEM ON JAN 1 1994 ITS SEWER REVENUE BONDS SERIES 1978A BANK OF AMERICA CALIF IS PAYING AGENT OROVILLEWYANDOTTE IRRIGATION DISTRICT WILL REDEEM ON JAN 1 1994 ITS SLY CREEK POWER PROJECT 1981 HYDROELECTRIC REVENUE BONDS FIRST INTERSTATE BANK OF CALIFORNIA IS TRUSTEE SOLANO IRRIGATION DISTRICT WILL REDEEM ON JAN 1 1994 ITS MONTICELLO POWER PROJECT 1981 HYDROELECTRIC REVENUE BONDS BANK OF AMERICA CALIF IS TRUSTEE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY WILL REDEEM ON JAN 1 1994 THE FOLLOWING 600000000 TRANSMISSON PROJECT REVENUE BONDS 1984 SERIES A SOUTHERN TRANSMISSION PROJECT 850 DUE 1994 875 DUE 1995 900 DUE 1996 925 DUE 1997 950 DUE 1998 960 DUE 1999 975 DUE 2004 1000 DUE 2021 AND 950 DUE 2023 BANK OF AMERICA CALIF IS TRUSTEE 9311300024 931130 MARKETING & MEDIA ADVERTISING FALLING BEHIND PROJECTED RATINGS CBS PAYS PIPER WITH MAKEGOODS' BY KEVIN GOLDMAN AT THE CONCLUSION OF SOME OF CBS'S PRIME TIME SERIES AN ANNOUNCER CHIRPS THANKS FOR MAKING CBS AMERICA'S MOSTWATCHED NETWORK UNFORTUNATELY FOR CBS IT ISN'T AS WATCHED AS IT ONCE WAS AND THAT'S COSTING THE NETWORK REVENUE AS IT SCRAMBLES TO FORK OVER FREE COMMERCIAL TIME TO ADVERTISERS TO MAKE UP FOR PROJECTIONS OF SMALLER AUDIENCES CBS HAS TO PAY BACK MORE THAN IT THOUGHT IT WOULD HAVE TO PAY BACK TO ADVERTISERS SAYS JEROME DOMINUS A SENIOR VICE PRESIDENT AT WPP GROUP'S J WALTER THOMPSON INDUSTRY EXECUTIVES ESTIMATE THAT CBS WILL GIVE TO ADVERTISERS ABOUT 10 MILLION IN FREE COMMERCIAL TIME CBS DECLINES COMMENT BUT THAT IS A FRACTION OF THE ESTIMATED 15 BILLION CBS RECEIVES IN PRIME TIME AD REVENUE IN A CALENDAR YEAR TO BE SURE CBS REMAINS THE NO 1 RATED NETWORK IN PRIMETIME RATINGS NINE WEEKS INTO THE TELEVISION SEASON ACCORDING TO AC NIELSEN AND CBS IS LEADING THE NOVEMBER SWEEPS WHICH END TOMORROW ONE OF FOUR MONTHS WHEN LOCAL STATIONS DETERMINE ADVERTISING RATES BASED ON RATINGS IF CBS WINS OVER ABC AS EXPECTED IT WILL BE CBS'S FIRST NOVEMBER SWEEPS VICTORY SINCE 1984 ALONG WITH CBS ITS RIVALS ARE EXPERIENCING PROBLEMS IN THE KEY DEMOGRAPHIC FOR ADVERTISERS ADULTS 18 TO 49 YEARS OLD CBS IS DOWN 2 IN THE CATEGORY FROM A YEAR EARLIER CAPITAL CITIES/ABC'S NETWORK IS DOWN 3 GENERAL ELECTRIC'S NBC IS FLAT FROM A YEAR AGO AND NEWS CORP'S FOX NETWORK IS OFF 9 CBS WAS APPARENTLY THE MOST AGGRESSIVELY PRICED NETWORK BEFORE THE 199394 SEASON BEGAN IN SEPTEMBER SAYS JOSEPH D ABRUZZESE SENIOR VICE PRESIDENT OF CBS NETWORK SALES WE'RE FALLING BELOW THE RATINGS WE THOUGHT WE WOULD BE ACHIEVING WE THOUGHT WE'D DO A LOT BETTER WE'RE STARTING TO DO MUCH BETTER BUT WE HAVE BUILT UP SOME AUDIENCE DEFICIENCIES NETWORKS SET AD RATES PRIOR TO THE BEGINNING OF THE PRIME TIME SEASON IN SEPTEMBER AND SELL TIME TO SPONSORS IN A FRENZY PERIOD KNOWN AS THE UPFRONT MARKET THE NETWORKS BASE THEIR AD RATES ON WHAT THEY PROJECT A SHOW'S RATINGS WILL BE ADVERTISING EXECUTIVES SAY THAT CBS WHICH HAS BEEN NO 1 IN HOUSEHOLDS SINCE THE 199192 SEASON BET TOO HIGH WHEN PROJECTIONS FALL BELOW A LEVEL GUARANTEED TO ADVERTISERS THE NETWORKS MUST MAKE UP THE DIFFERENCE WITH ADDITIONAL COMMERCIAL TIME CALLED MAKEGOODS OR AUDIENCE DEFICIENCY UNITS WHEN AN ADVERTISER BUYS CBS SAYS MR DOMINUS A FORMER CBS SALES EXECUTIVE THAT SPONSOR WANTS TO PURCHASE THE NETWORK'S SIGNATURE NIGHT MONDAY WITH ITS SMART ADULT COMEDIES MURPHY BROWN AND LOVE AND WAR THE BURT REYNOLDS'S SHOW EVENING SHADE AS WELL AS THE LIGHT DRAMA NORTHERN EXPOSURE THE SCARY PART FOR ADVERTISERS IS THAT CBS IS GETTING ITS CLOCK CLEANED ON MONDAYS SAYS JON MANDEL SENIOR VICE PRESIDENT AND DIRECTOR OF NETWORK BROADCASTING AT GREY ADVERTISING ADDS MR DOMINUS MONDAY IS NOW ONE OF CBS'S KEY OFFENDERS IN UNDERDELIVERING TO ADVERTISERS INDEED THE RATINGS FOR MURPHY BROWN ARE DOWN 19 TO 169 OF US HOMES WITH TELEVISION SETS LOVE AND WAR DROPPED 7 NORTHERN EXPOSURE PLUNGED 10 AND EVENING SHADE IS OFF 15 ON MONDAYS CBS IS DOWN 12 IN RATINGS AMONG ADULTS 18 TO 49 YEARS OLD ABC IS ALSO DOWN 12 IN THE SAME DEMOGRAPHIC GROUP WHILE NBC IS UP 2 EVEN MORE OMINOUS FOR CBS IS ITS FAILURE TO INTRODUCE SUCCESSFUL NEW SHOWS THIS SEASON THAT AUDIENCES AND ADVERTISERS LIKE WHEREAS CBS'S RIVALS LAUNCHED BONA FIDE HITS NYPD BLUE AND GRACE UNDER FIRE ON ABC AND FRASIER ON NBC NEW SHOWS ON CBS HAVEN'T FARED WELL ONLY DAVE'S WORLD ON MONDAY IS DOING FAIRLY WELL IN A TIE FOR NO 20 IN HOUSEHOLD RATINGS AND A TIE AT NO 21 AMONG ADULTS 18 TO 49 BUT DAVE'S WORLD IS IN A SOCALLED PROTECTED TIME PERIOD SANDWICHED BETWEEN TWO ESTABLISHED SHOWS THE NEXT NEW CBS SHOW IS HARTS OF THE WEST WHICH RANKS NO 50 AMONG HOUSEHOLDS AND IS TIED FOR NO 64 AMONG ADULTS 18 TO 49 CBS ALSO IS STUMBLING ON WEDNESDAY DOWN 6 AMONG ADULTS 18 TO 49 THURSDAY DOWN 25 AND FRIDAY DOWN 24 THE NETWORK'S BRIGHT SPOTS CONTINUE TO BE SUNDAY WHICH IS UP 12 IN RATINGS AND WHERE 60 MINUTES IS RANKED NO 2 IN HOUSEHOLD RATINGS AND SATURDAY UP A HEALTHY 67 AD EXECUTIVES SAY THAT CBS IS DOING ITS BEST TO ACCOMMODATE THEIR WISHES ON WHEN TO AIR THEIR MAKEGOOD SPOTS IN FACT CBS PURPOSELY HELD BACK ABOUT 5 OF ITS TOTAL PRIMETIME ADVERTISING INVENTORY IN CASE IT HAD TO PROVIDE MANY MAKEGOODS ONE MEDIA BUYER GENE DEWITT OF DEWITT MEDIA SAYS WE NEGOTIATE FOR THE MAKEGOOD TO BE IN SHOWS THAT ARE PROJECTED TO DO BETTER THAN THE ORIGINAL PROGRAM WAS PROJECTED TO DO IF THE NETWORK IS CONCERNED ABOUT THE LACKLUSTER PERFORMANCE OF ITS NEW SHOWS IT DOESN'T REVEAL THOSE FEELINGS IN FACT DAVID F POLTRACK SENIOR VICE PRESIDENT OF PLANNING AND RESEARCH AT CBS PLANS TO TELL A SWEEPS NEWS CONFERENCE ON THURSDAY THAT THE NETWORK IS IN A STRONGER POSITION THAN A YEAR AGO AS FAR AS MONDAYS ARE CONCERNED MR POLTRACK SAYS LAST YEAR'S RATINGS WERE BOLSTERED BY STRONG PUBLICITY SURROUNDING MURPHY BROWN INCLUDING A RUNNING FEUD WITH THENVICE PRESIDENT QUAYLE AS WELL AS MS BROWN GIVING BIRTH THE BOTTOM LINE IS THAT THE LOSS OF AUDIENCE WAS FROM THE LOSS OF THE HYPE HE SAYS THE RATINGS HAVE SETTLED INTO REFLECTING THE MORE REALISTIC SOPHISTICATED AUDIENCE CBS HAS HIGH HOPES FOR AT LEAST ONE MIDSEASON SHOW SECOND CHANCES A ONEHOUR DRAMA THAT IS GOING UP AGAINST SOME TOUGH COMPETITION BEGINNING THURSDAY LA LAW ON NBC AND PRIME TIME LIVE ON ABC THE SHOW IS FROM THE CREATORS OF THE OLD CBS PRIMETIME SOAP KNOTS LANDING AND THE NETWORK HOPES TO SNARE A FEMALE AUDIENCE THAT WILL BE ESPECIALLY APPEALING TO ADVERTISERS THE GUESSWORK OF AUDIENCE PROJECTIONS IS TRICKY AND AT TIMES COSTLY IT CAN COST A NETWORK UNDETERMINED MILLIONS IN ADVERTISING REVENUE IF THE NETWORK UNDERESTIMATES HOW POPULAR A SHOW WILL BE CBS FOR INSTANCE WAS CONSERVATIVE SOME WOULD COUNTER IT WAS WILDLY OPTIMISTIC IN SELLING LATE SHOW WITH DAVID LETTERMAN AT A GUARANTEED 41 MR LETTERMAN'S RATINGS AVERAGE 53 A 29 DIFFERENCE CBS SAYS THAT IT CAN'T NOW DEMAND HIGHER PAYMENT FROM ADVERTISERS FOR DELIVERING A MUCH HIGHER AUDIENCE LEVEL SO THE GUESSING GAME CONTINUES ONE NETWORK EXECUTIVE SAYS THE IDEA IS TO GET ALL THE MONEY UPFRONT ANY DIFFERENCES CAN BE NEGOTIATED CARE TO GUESS HOW HIGH CBS WILL RAISE ITS AD RATES FOR MR LETTERMAN'S SHOW IN THE NEAR FUTURE IN A SURPRISE ENDING TO ITS THREEANDAHALFMONTH AGENCY SEARCH TANDY CORP'S RADIO SHACK TUNED IN TO LORD DENTSU & PARTNERS AND SEVERAL OTHER UNITS OF YOUNG & RUBICAM FOR AN ESTIMATED 50 MILLION ADVERTISING AND MARKETING BLITZ THEY JUST EDGED EVERYBODY ELSE OUT SAID LEONARD ROBERTS PRESIDENT OF THE FORT WORTH TEXAS CONSUMERELECTRONICS RETAILER WHICH HEARD PRESENTATIONS FROM SIX OTHER AGENCIES THE WINNING TEAM HEADED BY Y&R'S CHAIRMAN AND CHIEF EXECUTIVE ALEX KROLL WAS COMPOSED OF EXECUTIVES FROM SEVERAL Y&R UNITS INCLUDING AD AGENCY LORD DENTSU A JOINT VENTURE OF Y&R AND DENTSU THE BIG JAPANESE AGENCY LORD DENTSU WAS A DARK HORSE CANDIDATE IN THE PITCH SOME EXECUTIVES BELIEVED THE FAVORITE WAS WPP GROUP'S OGILVY & MATHER SOUTH AN AGENCY WITH TIES TO MR ROBERTS FROM THE DAYS WHEN HE HEADED UP MARKETING FOR FORMER OGILVY CLIENTS ARBY'S FAST FOOD AND SHONEY'S RESTAURANTS OTHER Y&R UNITS WORKING ON THE ACCOUNT WILL INCLUDE COHN & WOLFE PUBLIC RELATIONS THE CHAPMAN DIRECT MARKETING AGENCY AND LANDOR & ASSOCIATES THE SAN FRANCISCO BRAND IDENTITY AND DESIGN FIRM STILL TO BE ARRANGED ARE SUCH DETAILS AS WHETHER Y&R WILL HANDLE MEDIA BUYING OR WHETHER IT WILL BE HANDLED INHOUSE MR ROBERTS SAID RADIO SHACK PLANS AN AMBITIOUS MARKETING PROGRAM NEXT YEAR AIMED AT RECASTING ITSELF AS A NEIGHBORHOOD HOMEELECTRONICS EXPERT IN A BID TO POSITION ELECTRONIC EQUIPMENT AS A CONVENIENT GIFT PURCHASE MR ROBERTS WHO WAS NAMED PRESIDENT IN JULY PLANS TO LAUNCH A NATIONAL TOLLFREE DELIVERY SERVICE AND BEEF UP SERVICE AND REPAIR OPERATIONS AT THE CHAIN'S ESTIMATED 6500 STORES NEXT SUMMER RADIO SHACK ADS PREVIOUSLY WERE CREATED BY ITS INHOUSE AGENCY WHICH WILL WORK IN TANDEM WITH THE Y&R UNITS MR ROBERTS SAID GENERAL MILLS INC IN WHAT IT CALLS A TRIBUTE TO THE LEADING COVER SUBJECT FOR ITS WHEATIES CEREAL IS ISSUING A COMMEMORATIVE PACKAGE HONORING BASKETBALL GREAT MICHAEL JORDAN THE SILVERBACKGROUND BOXES SALUTE WHAT THE COMPANY CALLS THE MAN WHO REDEFINED THE MEANING OF CHAMPION WHEATIES ADVERTISED AS THE BREAKFAST OF CHAMPIONS ALREADY HAS FEATURED MR JORDAN ON ITS BOXES 11 TIMES BEGINNING IN 1988 CALLED A COLLECTOR'S EDITION THE LATEST BOXES FEATURE THE RETIRED CHICAGO BULLS STAR'S CAREER HIGHLIGHTS AND RECORDS IT IS ONLY THE SECOND TIME WHEATIES BOXES HAVEN'T FEATURED AN ORANGE BACKGROUND THE FIRST WAS LAST YEAR WHEN A RED BOX HELPED HONOR THE BULLS' CHAMPIONSHIP SEASON LITIGATION THE CHICAGO AGENCY TATHAM EURO RSCG FILED SUIT AGAINST ITS ONETIME CLIENT CELESTIAL SEASONINGS INC IN FEDERAL COURT IN CHICAGO TATHAM IS CHARGING THE BOULDER COLO HERBAL TEA MAKER WITH BREACH OF CONTRACT CELESTIAL WHICH NAMED TATHAM AS ITS AGENCY IN EARLY SEPTEMBER AND THEN CHANGED ITS MIND IN MIDOCTOBER DECLINED TO COMMENT THE AGENCY SEEKS ABOUT 500000 IN DAMAGES INCLUDING EXPENSES AND FEES COVERING A FIVEMONTH PERIOD 9311300023 931130 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY LUCINDA HARPER THE JOBCREATING PROWESS OF SMALL BUSINESS IS A MYTH A NEW STUDY SAYS ECONOMISTS AND POLITICIANS OFTEN ASSERT THAT SMALL BUSINESSES ACCOUNT FOR MOST NEW JOBS SO ENTREPRENEURS SHOULD GET MORE ACCESS TO CREDIT TAX INCENTIVES AND OTHER PERKS FROM THE FEDERAL GOVERNMENT BUT WHILE SMALLER FIRMS DO EXHIBIT SHARPLY HIGHER GROSS JOBCREATION RATES THEY ALSO SHOW A HIGHER RATE OF JOB LOSS REDUCING THE NET JOB GAIN NEW RESEARCH SHOWS IN TERMS OF NET JOB CREATION ONE FEDERAL RESERVE AND TWO UNIVERSITY ECONOMISTS FOUND THAT MANUFACTURING FIRMS WITH AT LEAST 500 EMPLOYEES ACCOUNTED FOR MORE THAN HALF OF THE JOBS CREATED BETWEEN 1972 AND 1988 SURVIVAL RATES FOR MANUFACTURING JOBS INCREASE SHARPLY WITH EMPLOYER SIZE THE STUDY WAS FINANCED BY THE NATIONAL BUREAU OF ECONOMIC RESEARCH LARGER MANUFACTURERS PAY BETTER TOO MAINLY BECAUSE THEY TEND TO HIRE MORE HIGHLY SKILLED AND EDUCATED WORKERS SAYS UNIVERSITY OF CHICAGO ECONOMIST STEVEN DAVIS WHO HELPED AUTHOR THE STUDY PRODUCTIVITY GAINS SEEM BEST AT HIGHTECH COMPANIES STANDARD & POOR'S FOUND THAT COMPUTER COMPANY CONNER PERIPHERALS INC AND SEMICONDUCTOR FIRM ADVANCED MICRO DEVICES INC POSTED GAINS OF 188 AND 168 RESPECTIVELY IN SALES PER EMPLOYEE THOSE PRODUCTIVITY GAINS WERE AMONG THE LARGEST FOR THE 380 COMPANIES IN S&P'S INDUSTRIAL INDEX THE AVERAGE COMPANY IN THE INDEX REPORTED SALES PRODUCTIVITY INCREASES OF 62 WHILE EMPLOYMENT WAS VIRTUALLY UNCHANGED PRODUCTIVITY GAINS DON'T ALWAYS MEAN BIG PROFITS MARTIN SKALA EDITOR OF STANDARD & POOR'S WEEKLY INVESTMENT NEWSLETTER POINTS OUT THAT IN INDUSTRIES SUCH AS PERSONAL COMPUTERS UNIT VOLUME GROWTH HAS BEEN LARGELY OFFSET BY PRICE CUTTING SLUGGISH DEMAND OVERSEAS AND WEAK PRICING POWER ALSO HAVE PREVENTED CAPITALINTENSIVE INDUSTRIES FROM SEEING PROFIT PAYOFFS FROM PRODUCTIVITY GAINS TUCSON ELECTRIC POWER CO IN ARIZONA IS PUTTING ON A CHRISTMAS PARTY FOR MORE THAN 200 CHILDREN FROM A POOR RESIDENTIAL NEIGHBORHOOD UNITED PARCEL SERVICE GIVES EACH OF ITS 258000 US EMPLOYEES A HOLIDAY TURKEY EVEN WHEN WE'RE LOOKING FOR COSTCUTTING MOVES A SPOKESMAN SAYS THE TURKEYS HAVE ALWAYS BEEN SACRED BUT AT GEORGIA POWER CO AN ATLANTABASED SUBSIDIARY OF THE SOUTHERN CO BIG HOLIDAY PARTIES ARE DISCOURAGED LEST THE UTILITY'S RATEPAYERS BEGIN BELIEVING THEIR MONEY IS CARELESSLY SPENT THE ONLY CHRISTMAS PARTY I ATTENDED LAST YEAR SAYS ONE EMPLOYEE WAS ONE AT MY BOSS'S HOUSE WHERE HE PROVIDED THE HAM AND WE BROUGHT THE COKES IN A STUDY OF 500 COMPANIES RESEARCHERS AT VANDERBILT UNIVERSITY FIND THAT CUTTING BACK PARTIES IS A BAD IDEA EVEN TO SAVE MONEY CELEBRATION IS CRITICAL TO THE PERFORMANCE OF THE RANK AND FILE THEIR STUDY SAYS DIRTY LAUNDRY IN A NEW VIDEO CREATED TO EASE THE STRESS OF HOUSEWORK FOR BUSY PEOPLE MAINSTREAM COMMUNICATIONS IN PHILADELPHIA OFFERS SUCH TIPS AS PUTTING A CUP OF VINEGAR IN THE WASH TO KEEP JETBLACK JEANS JET BLACK MAINSTREAM PRESIDENT TOUBY BISHOW SAYS THE VIDEO IS FIRST IN A SERIES DESIGNED TO DISPEL THE SUPER WOMAN IMAGE AND TEACH HUSBANDS TEENAGERS AND NANNIES HOW TO DO HOUSEWORK PROPERLY NOT ENOUGH WORKERS AREN'T PUTTING ENOUGH INTO 401K PLANS TO RELY ON THEM ALONE FOR RETIREMENT A MASSACHUSETTS MUTUAL LIFE INSURANCE CO STUDY FINDS TOTAL EMPLOYEE CONTRIBUTIONS HAVE DROPPED BY 12 SINCE 1990 THE STUDY SAID THOUGH THE EMPLOYEE PARTICIPATION RATE HAS CLIMBED 8 HOW TO IRK A TEMP IMPERSONAL TREATMENT AT WORK JOB INSECURITY LACK OF BENEFITS AND JOBS THAT DON'T UTILIZE SKILLS BOTHER THE NATION'S TEMPORARYHELP WORK FORCE THE MOST A UNIVERSITY OF SOUTH CAROLINA STUDY FINDS NEVERTHELESS A SEPARATE STUDY BY THE ACADEMY OF MANAGEMENT FINDS THAT TEMPS ARE AS COMMITTED TO THEIR COMPANIES AS PERMANENT EMPLOYEES EMPLOYERS STRUGGLE TO TEACH THEIR WORKERS BASIC COMMUNICATION SKILLS GRAMMAR IS OFTEN TERRIBLE SAYS A HUMANRESOURCES OFFICIAL FOR FIRST BANK SYSTEM INC IN MINNEAPOLIS SHE SAYS THE PROBLEM OCCURS FROM ENTRYLEVEL CLERICAL UP TO MANAGERS FIRST BANK PROVIDES SKILLS UPGRADING CLASSES FOR ITS WORKERS THROUGH OUTSIDE VENDORS SMITH CORONA CORP IN NEW CANAAN CONN TEACHES BOTH HIGHERAND LOWERLEVEL EMPLOYEES HOW TO ANSWER THE TELEPHONE DAVID NEVINS OF PUBLICRELATIONS FIRM NEVINS & ASSOCIATES IN BALTIMORE SAYS THAT TO TEST JOB APPLICANTS' COMMUNICATION SKILLS HE OFTEN ASKS THEM THE LATEST BOOK THEY READ BUT LATELY THAT HASN'T WORKED BECAUSE MANY PEOPLE READ ONLY BOOKS ON HOW TO MAKE MONEY THAT DOESN'T TELL ME MUCH ABOUT THEIR ABILITY TO COMMUNICATE BEYOND A NARROW FOCUS MR NEVINS SAYS AN OLSTEN CORP SURVEY OF 443 COMPANIES FOUND THAT ONLY 25 OFFER TRAINING IN WRITTEN COMMUNICATIONS THOUGH 80 SAY IT IS THEIR BIGGEST SKILL PROBLEM THE CHECKOFF FRONTLASH THE AFLCIO YOUTH SUPPORT GROUP IS LEADING A TOYCOTT A BOYCOTT OF TOYS MADE IN CHINA TO PROTEST HUMANRIGHTS VIOLATIONS BY THE CHINESE GOVERNMENT ON THE WILD SIDE WORKERS WHO PARTICIPATE IN OR NOTICE WILDLIFE PROJECTS AT THEIR WORK SITES REPORT MORE JOB SATISFACTION THAN THOSE WHO DON'T A UNIVERSITY OF MICHIGAN STUDY FINDS 9311300022 931130 THRIFT SEEKS SUPPORT FOR STOCK CONVERSION VIA CHARITY SPENDING GREEN POINT FACING LAWSUITS FOR REJECTING TAKEOVER AIMS TO SWAY DEPOSITORS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GREEN POINT SAVINGS BANK TRYING TO RALLY SUPPORT FOR ITS PLAN TO CONVERT TO STOCK FROM MUTUAL OWNERSHIP PROPOSED TO SPEND 100 MILLION ON CHARITABLE VENTURES AND ON HIGHERTHANMARKET INTEREST RATES TO CERTAIN DEPOSITORS GREEN POINT WITH 65 BILLION IN ASSETS IS ONE OF THE LARGEST MUTUAL SAVINGS INSTITUTIONS WHICH ARE OWNED BY THEIR DEPOSITORS THAT HASN'T CONVERTED TO STOCK OWNERSHIP FORM ITS PLAN HAS COME UNDER INTENSE CRITICISM BECAUSE THE SAVINGS BANK HAS A NET WORTH APPROACHING 800 MILLION AND BECAUSE ITS OFFICERS AND TRUSTEES STAND TO MAKE LARGE SUMS FROM THE CONVERSION THROUGH THE EXPECTED VALUE OF STOCK THEY COULD BUY AT BARGAIN PRICES AND THROUGH STOCK OPTIONS THEY WILL RECEIVE SEVEN CLASSACTION LAWSUITS HAVE BEEN FILED AGAINST THE BANK AND ITS TRUSTEES MOST OF THEM QUESTIONING THE BANK'S DECISON TO REJECT A TAKEOVER OFFER FROM REPUBLIC NEW YORK CORP EARLIER THIS MONTH REPUBLIC BASED IN NEW YORK WITHDREW ITS SWEETENED 250 MILLION HOSTILE BID FOR GREEN POINT AFTER STATE REGULATORS DECLARED THAT THE BANK HAD NO LEGAL AUTHORITY TO MAKE AN OFFER DIRECTLY TO DEPOSITORS A SPOKESMAN FOR REPUBLIC DECLINED TO COMMENT ON WHETHER THE BANK WOULD APPROACH GREEN POINT'S TRUSTEES WITH A NEW OFFER IN ITS LATEST MATERIAL TO DEPOSITORS GREEN POINT SAID IT PLANS TO MAKE INCREMENTAL INTEREST PAYMENTS OF ABOUT 50 MILLION TO CERTAIN EXISTING CERTIFICATEOFDEPOSIT HOLDERS AND PASSBOOK AND OTHER ACCOUNT HOLDERS THE BANK SAID CD HOLDERS WHO ROLL OVER THEIR ACCOUNTS WOULD RECEIVE YIELDS HIGHER THAN CDS OF SIMILAR MATURITY AT THAT TIME AND THAT OTHER DEPOSITORS WOULD BE OFFERED PREMIUM INTEREST RATES A SPOKESMAN SAID THE PLAN IS INTENDED TO LENGTHEN THE MATURITY OF DEPOSITS THE BANK ALSO PLANS TO SPEND 25 MILLION TO SET UP A COLLEGETUITION FUND FOR DEPOSITORS AND THEIR DEPENDENTS AND ANOTHER 25 MILLION FOR GRANTS TO GROUPS THAT SERVE OTHER CRITICAL NEEDS IN THE COMMUNITIES SERVED BY THE BANK ACCORDING TO THE SPOKESMAN GREEN POINT REJECTED REPUBLIC'S OFFER BECAUSE THE BANK CAN SERVE ITS CUSTOMERS BEST AS AN INDEPENDENT INSTITUTION THE PROPOSED CONVERSION TO A STOCK SAVINGS BANK WILL ENABLE GREEN POINT TO RAISE ADDITIONAL CAPITAL TO EXPAND SERVICES HE ADDED DEPOSITORS WILL VOTE DEC 10 ON THE CONVERSION PLAN WHICH REQUIRES ENDORSEMENT BY HOLDERS OF AT LEAST 75 OF THE DEPOSITS VOTED IF THE CONVERSION IS APPROVED GREEN POINT SHARES ARE EXPECTED TO BE OFFERED AT A PRICE RANGE OF 1110 TO 15 EACH SHARES WILL BE OFFERED TO THE BANK'S EMPLOYEE STOCK OWNERSHIP PLAN TO EXISTING DEPOSITORS TO OFFICERS AND TRUSTEES AND TO INSTITUTIONAL AND OTHER INVESTORS GREEN POINT PLANS TO SELL 537 MILLION SHARES CRITICS HAVE NOTED THAT MANY DEPOSITORS TYPICALLY DON'T BUY SHARES IN STOCKCONVERSION DEALS WHILE MANAGEMENT AND TRUSTEES OFTEN REAP BIG GAINS ON THEIR PURCHASES ESPECIALLY WHEN SHARE PRICES APPRECIATE IN ADDITION GREEN POINT'S CONVERSION PLAN CALLS FOR THE BANK TO ISSUE AS MUCH AS 21 MILLION OF STOCK TO OFFICERS AND TRUSTEES UNDER RECOGNITION AND RETENTION PLANS CHAIRMAN THOMAS J JOHNSON OVER 10 YEARS WOULD RECEIVE AT NO COST ABOUT 2 MILLION IN STOCK HE ALSO COULD BUY AT THE CONVERSION PRICE ABOUT 4 MILLION IN STOCK OVER A FIVEYEAR PERIOD THE STOCK VALUES ARE BASED ON AN ASSUMED 1305 PRICE OF THE STOCK THE BANK SAYS THE BENEFITS GRANTED TO TRUSTEES AND OFFICERS ARE GENERALLY COMPARABLE TO THOSE GRANTED BY OTHER INSTITUTIONS 9311300021 931130 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 COMERICA INC 150 MILLION OF SUBORDINATED BANK NOTES DUE DEC 1 2013 PRICED AS 7125S AT 99388 TO YIELD 7183 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR 15 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF STEPUP NOTES DUE DEC 14 1998 PRICED AT PAR TO YIELD 475 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 29 BASIS POINTS ABOVE TREASURYS THE COUPON STEPS UP AFTER TWO YEARS TO 582 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 360 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1993 1652 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 72 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1651 IS BACKED BY THE PM CLASS FROM THE AGENCY'S REMIC SERIES 1574 WHICH IS BACKED BY 30YEAR 65 MORTGAGE SECURITIES THE PM CLASS IS A PLANNED AMORTIZATION CLASS FROM THE SERIES AND HAD AN ORIGINAL COUPON OF 9 FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1994G1 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 4068 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993251 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71875 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS BEAR STEARNS COS US 200 MILLION OF FLOATINGRATE EURONOTES DUE DECEMBER 1996 AT ISSUE AND REOFFER PRICE PAR VIA BEAR STEARNS INTERNATIONAL LTD AND UBS LTD PAYABLE QUARTERLY AT 35 BASIS POINTS OVER THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE LONDONLISTED BONDS ARE IN 10000 AND 100000 DENOMINATIONS SETTLEMENT IS DUE DEC 16 FEES 02 POINT CHINA OVERSEAS LAND & INVESTMENT CAYMAN ISLANDS LTD HONG KONG PARENT 125 MILLION US DOLLARS OF 525 CONVERTIBLE EUROBONDS DUE DEC 8 2000 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT 291 HONG KONG DOLLARS A 248 PREMIUM OVER AVERAGE SHARE PRICE FOR FIVE DAYS ENDED YESTERDAY CONVERTIBLE FROM JAN 31 1994 TO DEC 1 2000 OPTION TO INCREASE ISSUE BY US25 MILLION BONDS CALLABLE FROM DEC 8 1996 SUBJECT TO SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE GUARANTOR CHINA OVERSEAS LAND & INVESTMENT LTD FEES 25 DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT 400 MILLION DUTCH GUILDERS OF 6 EUROBONDS DUE JAN 12 2004 AT ISSUE PRICE 1011 VIA DEUTSCHE BANK DE BARY NV REOFFERED AT 10035 TO YIELD 595 A SPREAD OF 174 BASIS POINTS ABOVE DUTCH STATE LOAN OF APRIL 2003 GUARANTOR DEUTSCHE BANK AG FEES ONE EUROPEAN INVESTMENT BANK SUPRANATIONAL 10 BILLION PORTUGUESE ESCUDOS OF 8875 EUROBONDS DUE DEC 15 1998 AT ISSUE PRICE 1005 VIA BANCO TOTTA & ACORES REOFFERED AT 99 TO YIELD 913 A MARGIN OF NINE BASIS POINTS BELOW COMPARABLE PORTUGUESE TREASURY FEES 15 KING CO JAPAN 60 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 16 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 075 COUPON AT PAR VIA NOMURA BANK SWITZERLAND WARRANTS EXERCISABLE FROM JAN 5 1994 TO DEC 2 1997 TO PURCHASE COMPANY SHARES AT 25 PREMIUM ABOVE CLOSING SHARE PRICE DEC 6 WHEN TERMS FIXED FEES 1625 NATIONAL BANK OF HUNGARY HUNGARY ONE BILLION MARKS OF 8 EUROBONDS DUE JAN 13 2004 AT ISSUE PRICE 1018 VIA COMMERZBANK AG RECOMMENDED REOFFER 9955 TO YIELD 807 A SPREAD OF 223 BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES THREE POINTS LESS 02 FOR LEAD MANAGER NTT DATA COMMUNICATIONS SYSTEMS CORP JAPAN 10 BILLION YEN OF 33 EUROBONDS DUE MARCH 15 1999 AT ISSUE PRICE 10015 VIA FUJI INTERNATIONAL FINANCE PLC REOFFERED AT PAR TO YIELD 33 FEES 03 STATE BANK OF SOUTH AUSTRALIA AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 65 EUROBONDS DUE JAN 21 1999 AT ISSUE PRICE 1011 VIA HAMBROS BANK LTD BONDS YIELD 669 AT 99225 BREAKEVEN PRICE A SPREAD OF 23 BASIS POINTS ABOVE INTERPOLATED AUSTRALIAN GOVERNMENT BOND CURVE GUARANTOR STATE OF SOUTH AUSTRALIA FEES TWO LESS 0125 FOR LEAD MANAGER 9311300020 931130 LAM RESEARCH GETS ORDERS FREMONT CALIF LAM RESEARCH CORP A MAKER OF SEMICONDUCTORPROCESSING EQUIPMENT SAID IT RECEIVED 19 MILLION IN ORDERS FROM SAMSUNG ELECTRONICS CO OF SOUTH KOREA SAMSUNG WILL USE THE EQUIPMENT TO ETCH SILICON WAFERS THAT GO INTO THE MAKING OF ADVANCED DYNAMIC RANDOM ACCESS MEMORY OR DRAM CHIPS LAM SAID 9311300019 931130 BUSINESS BRIEF INSILCO CORP PURCHASER IS BEING SOUGHT FOR OFFICE PRODUCTS UNITS INSILCO CORP COLUMBUS OHIO SAID IT IS LOOKING FOR A BUYER FOR ITS TWO OFFICE PRODUCTS BUSINESSES ROLODEX AND CURTIS MANUFACTURING THE TWO UNITS HAVE COMBINED ANNUAL SALES OF ABOUT 111 MILLION A SPOKESWOMAN SAID GOLDMAN SACHS & CO HAS BEEN RETAINED TO ASSIST IN THE SALE ROLODEX MAKES A LINE OF OFFICE PRODUCTS INCLUDING CARD FILES AND ELECTRONIC AND PERSONAL ORGANIZERS CURTIS MAKES COMPUTER ACCESSORIES INSILCO MAKES SPECIALTY CONSUMER TELECOMMUNICATIONS AND AUTOMOTIVE PARTS 9311300018 931130 WHO'S NEWS AMEX FILLS POST AT DIVISION NEW YORK THE AMERICAN STOCK EXCHANGE SAID IT NAMED LISA SY SUN 35 YEARS OLD MANAGING DIRECTOR OF ITS NEWLY CREATED AMEX ASIA DIVISION THE DIVISION WILL SEEK TO ATTRACT LISTINGS OF ASIABASED COMPANIES TO THE EXCHANGE AND ESTABLISH ALLIANCES WITH ASIAN GOVERNMENTAL AGENCIES SECURITIES REGULATORY AGENCIES AND STOCK EXCHANGES IT ALSO WILL ASSIST ITS LISTED COMPANIES AND MEMBER FIRMS IN EXPLORING INVESTMENT AND TRADE OPPORTUNITIES IN THE ASIAPACIFIC RIM MS SUN PREVIOUSLY WAS A SENIOR ENFORCEMENT ATTORNEY FOR THE EXCHANGE SHE PRACTICED LAW IN TAIWAN IN THE MID1980S 9311300017 931130 MUTUAL FUNDS BONDFUND BUYERS EASE UP IN NOVEMBER BY ROBERT MCGOUGH AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL ALTHOUGH STOCKFUND INFLOWS APPEAR TO BE SLOWING SLIGHTLY AFTER HITTING A RECORD IN OCTOBER THE BIG NEWS IS IN BOND FUNDS WHERE MANY INVESTORS ARE IN RETREAT AT SOME LONGTERM BOND FUNDS INVESTORS ARE PULLING OUT MONEY WHILE AT OTHERS THE INFLOWS ARE COMING AT A SLOWER RATE THIS MONTH IN OCTOBER BY CONTRAST BONDFUND INFLOWS HAD SOARED TO 104 BILLION FROM 7 BILLION IN SEPTEMBER HELPED BY INVESTORS' RETURN TO JUNKBOND FUNDS BUSINESS IS OFF IN THE MONTH OF NOVEMBER EVEN THOUGH IT IS STILL RUNNING AT HIGH LEVELS SAYS ROBERT LEO HEAD OF FUND MARKETING AT SMITH BARNEY SHEARSON INC WE HIT A LITTLE BIT OF A WALL WHEN INTEREST RATES CLICKED UP A RECORD 133 BILLION FLOWED INTO STOCK FUNDS IN OCTOBER UP FROM 9 BILLION IN SEPTEMBER ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A TRADE GROUP THE PREVIOUS STOCKFUND RECORD OF 121 BILLION HAD BEEN SET ONLY IN AUGUST POWERING OCTOBER'S INFLOW WERE FUNDS THAT INVEST OVERSEAS AS WELL AS AGGRESSIVE STOCK FUNDS THAT TAKE HIGHER RISKS IN PURSUIT OF HIGHER RETURNS BUT STOCKFUND INVESTORS DIDN'T KEEP THE PACE UP IN NOVEMBER ACCORDING TO SEVERAL MUTUALFUND HOUSES THE OCTOBER INFLOWS WERE REPORTED BY THE ICI THE TRADE GROUP ADDS UP NEW SALES OF FUNDS THEN SUBTRACTS THE MONEY PULLED OUT BY DEPARTING SHAREHOLDERS INCLUDING THAT OF PEOPLE SWITCHING TO OTHER FUNDS IN THE SAME GROUP REINVESTED DIVIDENDS AREN'T INCLUDED NOLOAD FUNDS WHICH SELL DIRECTLY TO INVESTORS WITHOUT LEVYING A SALES CHARGE SEEM TO HAVE BEEN HIT THE HARDEST BY CASH OUTFLOWS FROM BOND FUNDS IN NOVEMBER THAT ISN'T SURPRISING NOLOAD INVESTORS FREQUENTLY REACT TO MARKET MOVEMENTS ROTATING MONEY INTO AND OUT OF FUNDS WHILE INVESTORS IN BROKERSOLD FUNDS SIT TIGHT SAYS AVI NACHMANY AN ANALYST AT NEW YORK CONSULTING FIRM STRATEGIC INSIGHT VANGUARD GROUP OF VALLEY FORGE PA THE SECONDLARGEST MUTUALFUND GROUP ATTRACTED LESS THAN 1 BILLION OVERALL INTO ITS STOCK BOND AND MONEYMARKET FUNDS THIS MONTH FOR THE FIRST TIME IN 12 MONTHS A SPOKESMAN SAID THE DRAG ON CASH FLOW AT THE NOLOAD FUND GROUP CAME FROM OUTFLOWS AT LONGTERM TAXABLE AND MUNICIPALBOND FUNDS AS INVESTORS SWITCHED INTO MONEYMARKET FUNDS ITS FUND INVESTING IN GINNIE MAE SECURITIES ALSO SUFFERED AN OUTFLOW BUT SHORTTERM BOND FUNDS WHICH ARE MORE INSULATED FROM DECLINING PRICES AS INTEREST RATES RISE REGISTERED INFLOWS ALL TOLD VANGUARD'S BOND FUNDS HAD NOVEMBER OUTFLOWS OF 290 MILLION THROUGH FRIDAY AT T ROWE PRICE ASSOCIATES INC BALTIMORE ANOTHER LARGE NOLOAD FUND GROUP BOND FUNDS HAD MODEST OUTFLOWS IN NOVEMBER AS INVESTORS SWITCHED TO THE RELATIVE SAFETY OF MONEYMARKET FUNDS A SPOKESMAN SAID OTHER GROUPS REPORTED INFLOWS INTO BOND FUNDS THIS MONTH BUT AT LOWER LEVELS THAN IN OCTOBER BOSTONBASED FIDELITY INVESTMENTS THE LARGEST FUND GROUP IN THE COUNTRY HAD LOWER INFLOWS PUTNAM INVESTMENTS A SUBSIDIARY OF MARSH & MCLENNAN COS AND FRANKLIN RESOURCES INC HAD INFLOWS INTO ADJUSTABLERATE FUNDS WHICH GIVE SOME PROTECTION FROM INTERESTRATE INCREASES FRANKLIN PUTNAM AND OTHER GROUPS HAD LOWER INFLOWS INTO TAXFREE BOND FUNDS THIS MONTH STOCKFUND INVESTORS APPEARED TO BE NERVOUS IN NOVEMBER AMG DATA SERVICES IN ARCATA CALIF ESTIMATED THAT THERE WERE BIG SWINGS IN STOCKFUND INFLOWS THIS MONTH WITH HEAVY INFLOWS SOME WEEKS AND OUTFLOWS ON OTHERS INTERNATIONAL STOCK FUNDS ATTRACTED 43 OF THE CASH FLOW INTO STOCK FUNDS IN OCTOBER AND THAT TREND CONTINUED OR EVEN ACCELERATED IN NOVEMBER LATIN AMERICAN SOUTHEAST ASIAN AND EMERGINGMARKET STOCK FUNDS GATHERED LOTS OF CASH AT FIDELITY TEMPLETON FUNDS THE INTERNATIONALFUND MANAGER AT FRANKLIN RESOURCES CONTINUED TO HAVE STRONG INFLOWS T ROWE PRICE HAD ITS SECONDBEST MONTH EVER FOR STOCK FUNDS LAGGING BEHIND OCTOBER INTERNATIONAL FUNDS DREW IN MORE THAN 80 OF THE FLOW INTO ITS EQUITY FUNDS STOCKFUND INFLOWS WERE DOWN FROM OCTOBER AT VANGUARD AND ALSO AT INVESCO FUNDS GROUP DENVER WHICH SAW HIGHER REDEMPTIONS AT ITS FUNDS THE REDEMPTIONS ARE NOT PERFORMANCERELATED SAID AN INVESCO SPOKESWOMAN I HOPE WITH ALL THE MONEY THEY MADE FROM OUR FUNDS THEY ARE GOING TO BUY GREAT CHRISTMAS GIFTS AT FIDELITY AND VANGUARD MONEYMARKET FUNDS ATTRACTED A LOT OF MONEY IN NOVEMBER MUCH OF THAT MONEY CAME FROM BANKS INSTEAD OF TRANSFERS FROM STOCK AND BOND FUNDS SAID NEAL LITVACK A FIDELITY EXECUTIVE VICE PRESIDENT BECAUSE A LOT OF BANK CERTIFICATES OF DEPOSIT MATURED IN OCTOBER MY SENSE IS THAT THE INVESTING POPULATION IS LOOKING FOR CLEARER SIGNALS FROM THE MARKET ON DIRECTION ESPECIALLY FOR INTEREST RATES HE SAID WE'LL PROBABLY SEE A RETURN TO BOND FUNDS IN DECEMBER A STUDY OF INVESTOR SENTIMENT DONE BY THE UNIVERSITY OF MICHIGAN AT THE REQUEST OF FIDELITY SHOWED THAT INVESTORS' EXPECTATIONS DROPPED A BIT IN NOVEMBER FROM THE PRIOR MONTH BUT INVESTORS' INTENTIONS TO BUY STOCKS AND BONDS REMAINED AT A FAIRLY STRONG LEVEL STOCKFUND MANAGERS DIDN'T PUT ALL THEIR OCTOBER CASH TO WORK IMMEDIATELY IN THE STOCK MARKET CASH HOLDINGS BY STOCK FUNDS WERE 88 OF ASSETS IN OCTOBER UP SLIGHTLY FROM 86 IN SEPTEMBER AND BELOW THE 92 LEVEL OF OCTOBER 1992 9311300016 931130 STEELCASE OFFICE DEPOT GRAND RAPIDS MICH STEELCASE INC'S TURNSTONE UNIT AND OFFICE DEPOT INC SAID THEY PLAN A JOINT MARKETING TEST IN ATLANTA THE COMPANIES SAID OFFICE DEPOT WILL CARRY SELECT TURNSTONE PRODUCTS IN ITS 12 ATLANTAAREA OUTLETS BEGINNING IN JANUARY TURNSTONE AND OFFICE DEPOT SAID TWO OF THE OUTLETS WILL MORE THAN TRIPLE THEIR OFFICEFURNITURE DISPLAY AREAS OFFICE DEPOT SAID THAT IF THE MARKET TEST IS SUCCESSFUL IN ATLANTA IT HOPES TO CARRY TURNSTONE OFFICE FURNISHINGS THROUGHOUT ITS CHAIN OF RETAIL STORES STEELCASE MAKES OFFICE FURNITURE 9311300015 931130 PEPPERAND SALT OF THOSE IDYLLIC TIMES IN PICKING ALL THOSE PECKS ACTUALLY QUITE COMPLEX I JUST GOT OUT OF JAIL 9311300014 931122 INTERNATIONAL MEXICO'S SALINAS MOVES TO SPUR ECONOMY NOW THAT NAFTA'S PASSAGE SEEMS SURE BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL PUERTO VALLARTA MEXICO PRESIDENT CARLOS SALINAS DE GORTARI SAID IN AN INTERVIEW THAT HE IS TAKING ANOTHER SERIES OF MODEST STEPS TO STIMULATE THE ECONOMY NOW THAT THE NORTH AMERICAN FREE TRADE AGREEMENT IS SURE TO BE APPROVED THE BIGGEST MOVE IS AN ATTEMPT TO PUSH DOWN INTEREST RATES WHICH HAVE HELPED TO SLOW THE MEXICO ECONOMY'S GROWTH TO AROUND 1 THIS YEAR THE RATES HAVE BEEN ESPECIALLY TOUGH ON SMALL TO MEDIUMSIZE BUSINESSES WHICH UNLIKE BIG COMPANIES CAN'T GO OUTSIDE MEXICO TO BORROW AT LOWER INTERNATIONAL INTEREST RATES PRESIDENT SALINAS SAID THAT NAFINSA THE GOVERNMENT'S DEVELOPMENT BANK FOR SMALL AND MEDIUMSIZE BUSINESSES IS CUTTING ITS INTEREST RATES BY TWO PERCENTAGE POINTS FROM AROUND 25 WHILE THAT STILL LEAVES RATES HIGH IN A COUNTRY WHERE INFLATION IS ABOUT 8 A YEAR COMPANIES THAT CAN BORROW FROM NAFINSA WILL BE MUCH BETTER OFF THAN THEIR COUNTERPARTS WHO MAY PAY RATES AS HIGH AS 40 PRESIDENT SALINAS ALSO SAID THAT THE MEXICAN GOVERNMENT HAD JUST AUTHORIZED 200 ADDITIONAL CREDIT UNIONS WHICH DOUBLES THE NUMBER IN OPERATION WHEN HE TOOK OFFICE FIVE YEARS AGO INTEREST RATES OFFERED BY CREDIT UNIONS TEND TO BE HIGH BUT AT LEAST THE INCREASE WILL MAKE MORE CREDIT AVAILABLE SEPARATELY OVER THE WEEKEND THE MEXICAN GOVERNMENT ANNOUNCED THAT IT WAS AUTHORIZING THE CREATION OF TWO MORE BANKS BY GROUPS OF PRIVATE INVESTORS BRINGING TO 25 THE NUMBER OF BANKS ALLOWED TO OPERATE IN MEXICO THE GOVERNMENT ALSO SAID IT WAS AUTHORIZING THE CREATION OF FOUR MORTGAGE LENDERS AND THREE SAVINGS AND LOANS THE ANNOUNCEMENT CONCERNING FINANCIAL INSTITUTIONS FURTHERS A GOVERNMENT POLICY OF TRYING TO DRIVE DOWN BANK INTEREST RATES BY INCREASING COMPETITION CONSISTENT WITH NAFTA WHICH SPECIFIES THAT FOREIGN BANKS RECEIVE 6 OF THE BANKING MARKET AS OF JAN 1 PRESIDENT SALINAS ALSO SAID IN THE INTERVIEW THAT THE GOVERNMENT WILL SHORTLY ANNOUNCE THE NAMES OF US BANKS THAT WILL BE ABLE TO BEGIN OPERATING IMMEDIATELY IN THE PREVIOUSLY CLOSED BANKING MARKET HERE THE SOONER THE BETTER THE PRESIDENT SAID THIS IS VERY IMPORTANT AS A WAY TO PUSH DOWN INTEREST RATES HE ADDED THAT THE APPROVAL OF NAFTA WILL ALLOW FOR THE LOWER RATES BY REDUCING UNCERTAINTY COMMERCE MINISTER JAIME SERRA PUCHE SAID IN THE SAME INTERVIEW THAT THE GOVERNMENT WILL SOON SEND TO CONGRESS A FOREIGNINVESTMENT LAW THAT AMONG OTHER THINGS WILL ALLOW FOR INCREASED FOREIGN OWNERSHIP OF TRANSPORTATION COMPANIES AND PETROCHEMICAL OPERATIONS HE WASN'T MORE SPECIFIC THE LAW WILL ALSO ADDRESS A PROBLEM THAT HAS FACED AMERICANS WANTING TO BUY PROPERTIES IN TOURIST AREAS MR SERRA SAID BECAUSE AMERICANS WEREN'T ALLOWED TO BUY PROPERTY ALONG THE COASTS THEY HAD TO HAVE BANKS OFFICIALLY HOLD THE TITLE WHICH LED TO COMPLICATIONS THAT PROBLEM WILL BE DEALT WITH MR SERRA SAID WITH THE JOSTLING FOR POSITION WELL UNDER WAY IN ADVANCE OF NEXT SUMMER'S PRESIDENTIAL ELECTIONS PRESIDENT SALINAS SAID IN THE INTERVIEW THAT THE RULING PARTY WOULD ALLOW AN OUTSIDE FIRM OR EXPERT TO VERIFY THE ACCURACY OF THE FEDERAL REGISTRY A KEY SOURCE OF FRAUD IN PAST ELECTIONS HE SAID THE RECENTLY ISSUED PHOTOID CARDS WILL ALSO BE OPEN TO OUTSIDE VERIFICATION THE RULING INSTITUTIONAL REVOLUTIONARY PARTY OR PRI HAS WON EVERY PRESIDENTIAL ELECTION SINCE IT WAS FORMED MORE THAN SIX DECADES AGO AND WHILE PRESIDENT SALINAS HAS ACCOMPLISHED ENORMOUS ECONOMIC REFORMS THERE HAS BEEN A GREAT DEAL OF INTEREST BOTH HERE AND ABROAD IN SEEING HOW FAR HE WILL GO IN REFORMING THE POLITICAL PROCESS I AM COMMITTED TO ESTABLISHING CONDITIONS FOR OPEN COMPETITION FOR ALL PARTIES PRESIDENT SALINAS SAID IN AN UNPRECEDENTED INCIDENT OVER THE WEEKEND THE PRI DID MANAGE TO TWIT THE PARTY OF THE DEMOCRATIC REVOLUTION'S PRESIDENTIAL CANDIDATE CUAUHTEMOC CARDENAS WHO IS EXPECTED TO BE THE MAIN COMPETITOR TO THE PRI'S CANDIDATE MR SERRA SURPRISED MR CARDENAS BY OFFERING TO DEBATE HIM ON NAFTA WHICH IS TO BE VOTED ON BY THE MEXICAN SENATE TODAY OR TOMORROW THIS WOULD HAVE BEEN THE FIRST TIME IN MORE THAN SIX DECADES THAT A MEMBER OF THE RULING PARTY HAD DEBATED AN OPPOSITION FIGURE THE DEBATE ALSO WOULD HAVE GIVEN MR CARDENAS UNUSUAL EXPOSURE ON TELEVISION WHICH IS HIGHLY SYMPATHETIC TOWARD THE PRI BUT ANALYSTS HERE SAY THAT MR CARDENAS FLUBBED THE OPPORTUNITY FIRST HE CALLED A NEWS CONFERENCE FRIDAY TO ADDRESS THE CHALLENGE BUT HIS ADVISERS PERSUADED HIM TO SLOW HIS RESPONSE PARTLY BECAUSE A MEXICAN HOLIDAY MEANT THAT THERE WERE NO NEWSPAPERS SATURDAY SO MR CARDENAS'S AIDES HAD TO APOLOGIZE TO THE REPORTERS AT THE NEWS CONFERENCE FOR HAVING NOTHING TO SAY ON SATURDAY MR CARDENAS SENT MR SERRA A LETTER SAYING THAT HE WOULD ONLY DEBATE PRESIDENT SALINAS OTHERWISE MR CARDENAS WOULD HAVE AN UNIDENTIFIED ASSOCIATE DEBATE MR SERRA MR SERRA'S OFFICE TOOK THE RESPONSE AS A NO AND MANAGED TO USE IT TO EMBARRASS MR CARDENAS SAYING HE DIDN'T HAVE THE COURAGE TO BACK UP THE COMPLAINTS HE HAS MADE ABOUT WHAT NAFTA WILL DO TO MEXICO 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 9311300013 931130 GM PLANS TO RECALL UTILITY VEHICLES VANS TO FIX BUCKET SEATS DETROIT GENERAL MOTORS CORP SAID IT WILL RECALL 678000 MINIVANS AND SPORT UTILITY VEHICLES BECAUSE OF A PROBLEM WITH THE FRONT SEATS BUT THE RECALL MAY HAVE TO WAIT ABOUT 30 DAYS WHILE GM GETS ITS DEALERS THE PROPER BOLT NEEDED TO REPAIR THE BUCKET SEATS GM SAYS THAT AT LEAST 28 PEOPLE HAVE BEEN HURT WHEN A BOLT HOLDING SEAT BACKS IN PLACE FAILED AND THE SEAT BACKS COLLAPSED HOWEVER GM DESCRIBED ALL THE INJURIES INVOLVED AS MINOR SOME BOLTS WILL NEED TO BE REPLACED IN 198591 CHEVROLET ASTRO AND GMC SAFARI MINIVANS AND 19891990 CHEVROLET AND GMC SUBURBAN SPORT UTILITY VEHICLES WITH FRONT BUCKET SEATS THE RECALL WILL APPLY TO ROUGHLY HALF THE 125 MILLION MINIVANS AND 250000 SUBURBANS BUILT IN THE PERIOD SOME VEHICLES SUCH AS SUBURBANS WITH BENCHSTYLE SEATS AREN'T AFFECTED BECAUSE THEY DON'T HAVE BUCKET SEATS GM COULD NOT SPECIFY WHICH MINIVANS WOULD BE AFFECTED BY THE RECALL BUT SAID THE OWNERS OF THE AFFECTED VANS WILL BE CONTACTED BY MAIL WHEN THE BOLTS ARE READY SO FAR 24 PEOPLE WERE INJURED WHEN THE VEHICLES WERE PARKED FOUR PEOPLE WERE INJURED IN ACCIDENTS GM SAID GM TOLD THE NATIONAL HIGHWAY TRANSPORTATION SAFETY ADMINISTRATION EARLIER THIS MONTH THAT IT WOULD VOLUNTARILY RECALL THE VEHICLES THE HIGHWAY ADMINISTRATION BEGAN INVESTIGATING THE MINIVANS AND THE SUBURBANS LAST YEAR THE PARTS TO FIX THE DEFECTIVE BOLT ARE EXPECTED TO BE READY IN ABOUT 30 DAYS AT WHICH TIME OWNERS WILL BE TOLD TO TAKE VEHICLES TO DEALERSHIPS FOR INSPECTION AND REPAIR FREE OF CHARGE GM DECLINED TO SAY HOW MUCH THE REPAIR WORK WOULD COST THE COMPANY 9311300012 931130 MAGNA STAKE IN PORSCHE UNIT MAGNA INTERNATIONAL INC SAID IT AGREED WITH PORSCHE GMBH OF AUSTRIA TO ACQUIRE A 74 INTEREST IN ITS ZIPPERLE GMBH TERMS OF THE TRANSACTION WEREN'T DISCLOSED ZIPPERLE BASED IN ASPERG GERMANY PRODUCES MIRRORS AND OTHER PARTS FOR THE AUTO INDUSTRY IN EUROPE AND HAS ANNUAL SALES OF ABOUT 113 MILLION MAGNA SAID MAGNA IS A MARKHAM ONTARIO AUTOPARTS CONCERN PORSCHE AUSTRIA IS A UNIT OF AUTO MAKER PORSCHE AG OF GERMANY 9311300011 931130 GFC FINANCIAL CORP AGREES TO ACQUIRE FLEET FINANCIAL'S FACTORING SUBSIDIARY BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL GFC FINANCIAL CORP A COMMERCIAL FINANCE CONCERN BASED IN PHOENIX SAID IT AGREED TO ACQUIRE FLEET FINANCIAL GROUP INC'S FACTORING AND ASSETBASED LENDING SUBSIDIARY TERMS WEREN'T DISCLOSED THE SUBSIDIARY FLEET FACTORS CORP PROVIDES FACTORING AND COMMERCIAL FINANCING MAINLY TO TEXTILE MANUFACTURERS AND DISTRIBUTORS FACTORS BUY ACCOUNTS RECEIVABLE AT A DISCOUNT AND TAKE OVER THE JOB OF COLLECTING ALL THE MONEY DUE GFC CHAIRMAN SAM EICHENFIELD SAID THE ALLCASH TRANSACTION PRICE WOULD BE FOR A PREMIUM OVER THE UNIT'S BOOK VALUE WHICH WASN'T DISCLOSED PLUS THE ASSUMPTION OF DEBT GFC AND FLEET FINANCIAL SAID THE UNIT HAS ABOUT 350 MILLION OF ASSETS AND IS EXPECTED TO REPORT FACTORING VOLUME THIS YEAR OF ABOUT 800 MILLION THE ACQUISITION OF FLEET FACTORS WOULD ADD A NEW BUSINESS LINE TO GFC'S CORE COMMERCIAL FINANCE ACTIVITIES AND ENABLE THE COMPANY TO OFFER A BROADER RANGE OF SERVICES TO OUR PROSPECTIVE BORROWERS MR EICHENFIELD SAID GFC PLANS TO EXPAND THE FACTORING COMPANY'S OPERATIONS OUTSIDE NEW YORK HE ADDED LAST YEAR GFC HAD NET INCOME OF ABOUT 49 MILLION OR 231 A SHARE INCLUDING 122 MILLION FROM DISCONTINUED OPERATIONS DOING BUSINESS UNDER THE TRADE NAME AMBASSADOR FACTORS NEW YORKBASED FLEET FACTORS HAD OPERATING PROFIT OF 45 MILLION LAST YEAR AND 67 MILLION FOR THIS YEAR'S FIRST NINE MONTHS FINANCING FOR THE ACQUISITION WOULD COME MAINLY THROUGH UNUSED BORROWING CAPACITY MR EICHENFIELD SAID PROCEEDS FROM LAST SUMMER'S SALE OF A RESIDENTIAL MORTGAGE INSURANCE UNIT VEREX CORP WAS IN ESSENCE A RETURN OF CAPITAL MR EICHENFIELD SAID ADDING THAT WE HAVE BEGUN TO REDEPLOY THOSE FUNDS WITH THIS ACQUISITION FLEET FINANCIAL A DIVERSIFIED FINANCIAL SERVICES COMPANY BASED IN PROVIDENCE RI SAID IT DECIDED TO SELL ITS SUBSIDIARY BECAUSE WE ARE NOT A MAJOR PLAYER IN THE FACTORING BUSINESS NOR IS IT A CORE BUSINESS OF KEY STRATEGIC VALUE WE BELIEVE IT MAKES SENSE TO REALLOCATE THE CAPITAL TO OTHER BUSINESS ACTIVITIES THAT HAVE GREATER POTENTIAL FOR OUR COMPANY THE COMPANIES SAID THEY EXPECT THE TRANSACTION TO CLOSE EARLY NEXT YEAR IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GFC SHARES ROSE 25 CENTS TO 26875 AND FLEET FINANCIAL'S SHARES CLIMBED 375 CENTS TO 3050 9311300010 931130 PRIMARK TO BUY BACK SHARES MCLEAN VA PRIMARK CORP SAID IT PLANS TO BUY BACK AS MANY AS ONE MILLION COMMON SHARES FROM TIME TO TIME IN THE OPEN MARKET OR IN PRIVATE TRANSACTIONS THE INFORMATION SERVICES CONCERN SAID THE REPURCHASED SHARES WILL BE USED FOR GENERAL CORPORATE PURPOSES PRIMARK WHICH HAS ABOUT 197 MILLION SHARES OUTSTANDING REPORTED 3097 MILLION IN REVENUE FOR 1992 9311300009 931130 BUT STRATEGIST WITH TWO YARDSTICKS SAYS IT'S TIME TO PURCHASE TOKYO SHARES BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE SHARP DROP IN JAPANESE STOCK PRICES MAY WORRY MANY INVESTORS AND ANALYSTS BUT NOT MICHAEL HOWELL CHIEF GLOBALINVESTMENT STRATEGIST AT BARING SECURITIES LTD INDEED JUDGED BY TWO KEY YARDSTICKS HE USES TO EVALUATE WORLD MARKETS JAPAN'S MARKET IS A BUY FALLING PRICES ONLY MAKE IT MORE ATTRACTIVE HE SAYS WHY IS MR HOWELL SO BULLISH JAPAN'S CENTRAL BANK IS PUMPING LIQUIDITY INTO JAPANESE FINANCIAL MARKETS HE EXPLAINS INCREASING THE SUPPLY OF MONEY AVAILABLE TO BUY SHARES AT THE SAME TIME HE SAYS INVESTOR SENTIMENT OR INVESTORS' WILLINGNESS TO OWN STOCKS AS OPPOSED TO SUCH OTHER ASSETS AS BONDS OR CASH IS SERIOUSLY DEPRESSED THAT MEANS THE POTENTIAL FOR A REBOUND IS VERY SIGNIFICANT THIS ISN'T THE FIRST TIME THE 37YEAROLD ECONOMIST HAS GONE AGAINST THE HERD ON JAPAN WHEN PEOPLE WERE BEARISH ON JAPAN IN THE MIDDLE OF LAST YEAR HE TURNED POSITIVE SAYS GEORGE L NOBLE MANAGING PARTNER OF TETON PARTNERS LP IN BOSTON IT WAS A GOOD CALL BUT THEN MR HOWELL HAS MADE A NUMBER OF GOOD CALLS WITH PROFITS REINVESTED HIS MODEL STOCK PORTFOLIO HAS OUTPERFORMED MAJOR GLOBAL STOCK INDEXES BY 21 SINCE THE MIDDLE OF 1988 BETTERING THE INDEXES IN 15 OF THE PAST 21 QUARTERS MANY STOCKMARKET INVESTORS SWEAR THEY CAN GET THE BEST RETURNS BY BUYING CHEAP STOCKS WITH LOW PRICE/EARNINGS RATIOS AND UNLOADING OR AVOIDING EXPENSIVE STOCKS WITH HIGH P/ES NOT MR HOWELL DO YOU REALLY WANT TO BUY A CHEAP LOW P/E STOCK OR WOULD YOU RATHER BUY A STOCK THAT'S GOING UP HE ASKS THE OVERRELIANCE ON P/E RATIOS AND SOCALLED VALUE INVESTING CAN BE A TRICKY PROBLEM IN INTERNATIONAL MARKETS MR HOWELL SAYS ONE REASON IS THAT THE THEORY OF VALUE INVESTING WAS DEVISED SEVERAL DECADES AGO BASED ON THE US AND BRITISH STOCK MARKETS WHICH HE CONTENDS HAVE LITTLE IN COMMON WITH MANY OTHERS ANOTHER FLAW HE SAYS IS THAT NO MATTER HOW CHEAP STOCKS ARE INVESTORS AREN'T ALWAYS WILLING TO PURCHASE THEM VALUE ANALYSIS ASSUMES YOU CAN ALWAYS BUY AND SELL STOCKS MR HOWELL SAYS BUT THE ENVIRONMENT FOR BUYING AND SELLING IS GOING TO BE DIFFERENT AT DIFFERENT TIMES WHAT CHANGES THE ENVIRONMENT IS THE FLOW OF FUNDS OR LIQUIDITY FOR INSTANCE HE SAYS EACH TIME 1 OF THE TOTAL ASSETS OF US PENSION AND MUTUAL FUNDS IS INVESTED ABROAD ROUGHLY 40 BILLION OF EXTRA LIQUIDITY IS UNLEASHED ONTO OVERSEAS SECURITIES MARKETS SUCH MASSIVE CAPITAL FLOWS DISTORT THE CONVENTIONAL BASIS OF EVALUATING STOCK MARKETS HE SAYS INSTEAD OF P/E RATIOS HE SAYS INVESTORS SHOULD BE PAYING MORE ATTENTION TO LIQUIDITY AND SENTIMENT YOU SHOULDN'T RUSH INTO A MARKET WHERE SENTIMENT IS AT A HIGH EXTREME BECAUSE PEOPLE ALREADY OWN IT YOU SHOULDN'T IGNORE A MARKET WHERE LIQUIDITY IS RISING THOSE ARE THE TWO OVERRIDING PRINCIPLES I USE MR HOWELL'S APPROACH ISN'T PERFECT FOR INSTANCE HE CONCEDES THAT LAST YEAR HE WAS TOO EARLY IN PREDICTING A RISE IN CANADIAN STOCKS BECAUSE THE CANADIAN GOVERNMENT MOPPED UP EXCESS LIQUIDITY BY UNEXPECTEDLY SELLING NEW BONDS HE ALSO SAYS THAT THIS YEAR HE'S BEEN TOO NEGATIVE ON THE MALAYSIAN STOCK MARKET UP 69 IN DOLLAR TERMS AND WAS TOO EARLY IN CALLING THE PEAK IN BRAZIL'S MARKET YET OVERALL SAYS MR NOBLE MR HOWELL PROVIDES A LOT OF VALUE AND PROVIDES YOU WITH A LOT OF CLARITY OF THOUGHT AND HOPEFULLY HELPS YOU MAKE A LOT OF MONEY TOO AS FAR AS MIKE GOES I REALLY DON'T UNDERSTAND ALL THE STUFF HE SENDS TO ME SAYS MARTYN ARBIB CHAIRMAN OF PERPETUAL PLC AN INVESTMENTMANAGEMENT FIRM IN HENLEYONTHAMES BUT WHAT HE TELLS ME IS THAT WHERE THERE IS EASY MONEY THOSE ARE THE MARKETS WHICH GO UP AND WHERE MONEY IS TIGHT SUCH AS WHERE THERE ARE HIGHER INTEREST RATES STOCKS GO DOWN HE'S BEEN RIGHT FOR A LONG TIME MR HOWELL'S METHODOLOGY HELPS EXPLAIN WHY SOMETIMES LOW P/E STOCKS IN CHEAP MARKETS DO POORLY AND WHY HIGH P/E STOCKS IN EXPENSIVE MARKETS DO WELL SAYS MR NOBLE JAPANESE STOCKS SOARED THROUGHOUT THE 1980S DESPITE SKYHIGH PRICE/EARNINGS RATIOS THAT PROMPTED MANY US AND OTHER WESTERN VALUE INVESTORS TO BAIL OUT TOO SOON FROM 1979 TO 1990 RETURNS IN THE JAPANESE MARKET WERE DRIVEN MINIMALLY BY PROFITS AND MOSTLY BY EXCESS LIQUIDITY AND THE INCREASING DEMAND FOR EQUITIES AS AN ASSET CLASS MR HOWELL SAYS BY THE SAME TOKEN HE SAYS THAT ALTHOUGH JAPANESE INTEREST RATES WERE LOW THE BANK OF JAPAN'S TIGHT CREDIT POLICIES THROUGHOUT 1991 AND 1992 EXPLAIN THE TOKYO STOCK MARKET'S NOSEDIVE CURRENTLY MR HOWELL SAYS HIS YARDSTICKS ALSO CONTINUE TO FAVOR GERMAN STOCKS WHILE THE US ISN'T A SELL YET HE SAYS ITS ATTRACTIONS ARE DWINDLING THAT'S BECAUSE THE POOL OF MONEY THAT'S DRIVING US STOCKS IS DWINDLING FOR US INVESTORS EAGER TO CASH IN ON OPPORTUNITIES OVERSEAS HE HAS A FEW WORDS OF CAUTION A STRONGER DOLLAR HE WARNS COULD ERODE THE VALUE OF AN AMERICAN'S FOREIGNSECURITIES HOLDINGS MR HOWELL SAYS HIS APPROACH IS PARTICULARLY USEFUL IN EVALUATING EMERGING STOCK MARKETS AS THE EMERGING ECONOMIES GROW AND DEVELOP TRADE SURPLUSES AND MORE CAPITAL FLOWS FROM ABROAD INTO THEIR MARKETS THEIR PRICEEARNINGS MULTIPLES WILL EXPAND HE SAYS IN ADDITION HE POINTS TO THE DEVELOPMENT OF DOMESTIC PENSION FUNDS IN LATIN AMERICA AND INCREASING STOCK PURCHASES BY WEALTHY PEOPLE IN PACIFIC BASIN COUNTRIES AS EVIDENCE OF RISING INVESTOR SENTIMENT IN EMERGING MARKETS IF YOU TAKE THE MEXICAN STOCK MARKET WHICH SELLS AT 14 TIMES EARNINGS AND VALUE IT WITH UK SENTIMENT AND US LIQUIDITY ITS PRICEEARNINGS MULTIPLE RISES TO ABOUT 40 SAYS MR HOWELL AND STILL THE MARKET WOULD BE A BUY MR HOWELL ALSO RECOMMENDS STOCK MARKETS IN SOUTH KOREA AND TAIWAN AND ARGENTINA COLOMBIA PERU AND VENEZUELA MEANWHILE HE WARNS THAT HIGHFLYING HONG KONG AND SINGAPORE STOCKS ARE VULNERABLE TO A BULLMARKET CORRECTION INITIALLY MONEY MANAGERS WERE SKEPTICAL OF MR HOWELL'S WORK BRITISH PORTFOLIO MANAGERS WHO TEND TO ANALYZE STOCK MARKETS FROM THE TOP DOWN MEANING THEY FIRST EXAMINE A COUNTRY'S OVERALL ECONOMIC PROSPECTS WERE ALREADY LOOKING AT FLOWS OF FUNDS BUT THEY QUESTIONED THE QUALITY OF DIFFERENT COUNTRIES' MONETARY DATA AMERICANS WHO PREFER A BOTTOMUP APPROACH THAT EMPHASIZES MORE DETAILED INDUSTRY OR CORPORATE ANALYSIS WERE MORE DUBIOUS BUT AS US INVESTORS PUT MORE MONEY INTO FOREIGN STOCKS MR HOWELL SAYS THAT US FUND MANAGERS ARE REALIZING THEY ALSO HAVE TO CONSIDER THE TOPDOWN APPROACH IF YOU'RE FOLLOWING BETHLEHEM STEEL WHAT THE BUNDESBANK DOES DOESN'T MATTER MUCH HE SAYS BUT IF YOU ARE FOLLOWING SIEMENS OR DEUTSCHE BANK WHAT THE BUNDESBANK DOES IS FUNDAMENTAL SEE RELATED ARTICLE BATTERED JAPANESE STOCKS MAY HAVE FURTHER TO FALL WSJ NOV 30 1993 ONE MAN'S VIEW OF WORLD MARKETS JAPAN RANKS NEAR THE TOP AMONG THE WORLD'S 20 BIGGEST STOCK MARKETS ON THE BASIS OF TWO MEASURES USED BY BARING SECURITIES' MICHAEL HOWELL AND DEAD LAST ON THE BASIS OF PRICE/EARNINGS MEASURES RELIED UPON BY MANY INDIVIDUAL INVESTORS INVESTOR SURPLUS P/E SENTIMENT LIQUIDITY RATIO US 12 7 14 JAPAN 3 3 20 BRITAIN 14 12 10 GERMANY 8 15 16 FRANCE 13 10 7 CANADA 16 11 19 HONG KONG 17 1 5 SWITZERLAND 20 4 6 AUSTRALIA 18 13 18 SOUTH AFRICA 5 18 1 NETHERLANDS 7 9 2 MEXICO 4 16 8 ITALY 9 19 11 MALAYSIA 19 5 15 SPAIN 10 8 3 SOUTH KOREA 2 17 17 TAIWAN 1 2 9 BRAZIL 6 20 4 SWEDEN 11 14 13 SINGAPORE 15 6 12 9311300008 931130 WHAT'S NEWS BUSINESS AND FINANCE OIL PRICES FELL FURTHER WITH US CRUDE LOSING MORE THAN 1 A BARREL IN THE WAKE OF OPEC MEMBERS' DECISION NOT TO LOWER PRODUCTION OTHER FUEL PRICES ALSO FELL SHARPLY WITH JANUARY UNLEADED GASOLINE DROPPING NEARLY THREE CENTS A GALLON IN NEW YORK LOWER OIL PRICES SPURRED A BONDMARKET RALLY BUT BOND PRICES SURRENDERED MOST OF THEIR GAINS STOCK PRICES ALSO REVERSED COURSE ENDING LOWER CLINTON'S INTERVENTION IN AMERICAN AIR'S STRIKE WAS A RESULT OF EXCEPTIONAL EXTENUATING CIRCUMSTANCES LABOR SECRETARY REICH SAID ADDING THAT THE PRESIDENT IS EXPECTED TO INTERVENE ONLY IN UNUSUAL LABOR DISPUTES THE SUPREME COURT AGREED TO DECIDE WHETHER FEDERAL REGULATORS MAY SUE LAWYERS REPRESENTING A SAVINGS AND LOAN FOR FAILING TO DETECT ALLEGED FRAUD BY EXECUTIVES OF THE THRIFT TOKYO STOCKS PLUNGED 39 AND THE SLIDE SHOWS NO SIGNS OF ABATING THE NIKKEI INDEX DROPPED 64766 TO 1607871 MONDAY A NEW LOW FOR THE YEAR MEANWHILE JAPAN'S NEW REFORMIST GOVERNMENT HASN'T INDICATED IT INTENDS TO TRY TO STEM THE PLUNGE STOCKFUND INFLOWS ROSE TO A RECORD 133 BILLION IN OCTOBER BUT APPEAR TO BE SLOWING SLIGHTLY THIS MONTH BONDFUND INFLOWS ROSE TO 104 BILLION BUT NOVEMBER'S GROWTH RATE IS SLOWING IBM'S OS/2 OPERATING SYSTEM IS SHOWING SURPRISING SIGNS OF LIFE WITH SALES OF THE SYSTEM STARTING TO BUILD IBM SAID MEANWHILE MICROSOFT'S NEW WINDOWS NT IS OFF TO A SLOW START 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 SMALL COMPANIES PLAN TO RAISE SPENDING OVER THE NEXT THREE MONTHS AND ARE IN STRONGER FINANCIAL SHAPE TO TAKE ON BANK LOANS TWO STUDIES SHOW KENDALL SQUARE RESEARCH SAID IT EXPECTS TO RESTATE ITS 1992 RESULTS WITH SUBSTANTIAL DOWNWARD REVISIONS ITS STOCK DROPPED 375 OR 33 TO 750 GM'S OLDSMOBILE DIVISION UNVEILED AN AMBITIOUS COMEBACK STRATEGY THAT COULD SET THE TONE FOR OTHER GM UNITS EXISTINGHOME SALES ROSE A ROBUST 36 IN OCTOBER WITH CONTINUED LOW INTEREST RATES FUELING THE HIGHEST MONTHLY LEVEL OF ACTIVITY IN 14 YEARS AMERICAN SUPERCONDUCTOR EXPECTS TO ANNOUNCE TODAY THAT IT HAS ACHIEVED A MILESTONE IN THE RACE TO DEVELOP AN ECONOMICALLY VIABLE WAY TO USE SUPERCONDUCTORS TO TRANSMIT ELECTRICITY BROWNINGFERRIS WAS ASKED BY A JUDGE TO PROPOSE AN ARBITRATION SYSTEM TO SETTLE DISPUTES THAT ARE EXPECTED AFTER IT TAKES NEW YORK CITY CUSTOMERS AWAY FROM SMALLER TRASH HAULERS ITALY'S FERRUZZI RECEIVED APPROVAL FOR A RESTRUCTURING PLAN FROM A GROUP OF FOREIGN CREDITOR BANKS ALLOWING THE CONGLOMERATE TO PROCEED MICROSOFT PLANS TO WORK WITH DIGITAL EQUIPMENT TO EXTEND THE REACH OF MICROSOFT'S OBJECTORIENTED SOFTWARE 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 CONSTRUCTION CONTRACTS HAVE RISEN 3 SINCE THE FIRST HALF OF THE YEAR DODGE SAID BONDS LEHMAN BROTHERS TREASURY INDEX 553285 UP 1214 COMMODITIES OIL 1531 A BARREL OFF 107 DOW JONES FUTURES INDEX 13701 OFF 008 SPOT INDEX 12317 OFF 078 DOLLAR 10920 YEN UP 032 17080 MARKS OFF 00056 9311300007 931130 PRIESTLY SEX SCANDALS AND MEDIA LUST BY R WALKER NICKLESS FOR FIVE YEARS A PARADE OF PRIESTLY PERSONNEL ISSUES HAS CROSSED MY DESK MOST HAVE BEEN ROUTINE SOME HAVE BEEN SENSITIVE BUT NOTHING HAS TROUBLED ME MORE THAN THE RECENT LAWSUIT ALLEGING CHICAGO CARDINAL JOSEPH BERNARDIN'S SEXUAL ABUSE OF A MINOR NEARLY 20 YEARS AGO THE LAWSUIT HEATED UP THE ROMAN CATHOLIC CHURCH'S SEXUAL MISCONDUCT CRISIS AND HAMMERED THE MORALE OF MANY GOOD PRIESTS AND LAYPEOPLE TO AN ALLTIME LOW THEY DON'T DESERVE THIS AND THE MEDIA SHOULD KNOW BETTER THE WEEK AFTER THE LAWSUIT WAS FILED AGAINST CARDINAL BERNARDIN AMERICA'S CATHOLIC BISHOPS VOTED OVERWHELMINGLY TO PROPOSE CHANGES IN CHURCH LAW THAT WOULD STRENGTHEN THE PROTECTIONS EXTENDED TO INDIVIDUALS WHO BRING A CHARGE OF SEXUAL MISCONDUCT AGAINST PRIESTS IN EFFECT THIS VOTE MADE EXPLICIT WHAT HAS BEEN THE BISHOPS' PRINCIPLE FOR SOME TIME ZERO TOLERANCE FOR SEXUAL ABUSE BY CLERGY THE CHURCH IS NOT HIDING ITS HEAD IN THE SAND ON THE CONTRARY AMERICA'S BISHOPS ARE DEAD SERIOUS ABOUT ACCOUNTABILITY IN MY OWN EXPERIENCE THE CHURCH HAS TRIED EARNESTLY AND CONSISTENTLY TO ACT IN THE INTERESTS OF ALL THE INDIVIDUALS INVOLVED IN ABUSE CASES USING THE BEST KNOWLEDGE AVAILABLE CHARGES THAT THE CHURCH HAS COVERED UP CLERGY SEXUAL MISCONDUCT BY RELOCATING AN ACCUSED PRIEST OFTEN DO NOT TAKE INTO ACCOUNT THAT MANY OF THE INCIDENTS NOW REPORTED BY THE PRESS HAPPENED 15 20 AND 25 YEARS AGO WHILE RELOCATIONS CERTAINLY DID OCCUR THEY USUALLY STEMMED FROM A FAULTY PARADIGM OF THE ILLNESS A BELIEF THAT THE BEHAVIOR RESULTED FROM SPIRITUAL WEAKNESS AND THAT REMOVING THE PRIEST FROM THE OCCASION OF SIN WOULD SOLVE THE PROBLEM WE KNOW BETTER NOW BUT IF WE INDICT THE CHURCH FOR ITS PAST IGNORANCE WE MUST BE EQUALLY AGGRESSIVE IN INDICTING DOCTORS ATTORNEYS AND THE SCIENTIFIC RESEARCHERS FOR THEIRS TO PUT THE ISSUE ANOTHER WAY FEW EXPERTS SERIOUSLY REGARD ALCOHOLISM AS A CHARACTER DEFECT TODAY A DISEASE OR PHYSICAL ADDICTION YES BUT A SPIRITUAL WEAKNESS NO YET ALCOHOLISM WAS NOT GENERALLY RECOGNIZED AS A DISEASE UNTIL THE 1950S UNTIL THEN ALCOHOLICS WERE OFTEN ASSUMED TO BE DELIBERATE SINNERS SPIRITUAL DEFECTIVES TREATMENT BASED ON THIS MODEL HAD PREDICTABLY MIXED RESULTS SIMILARLY AS THE MEDICAL FIELD STUDIED SEXUAL DYSFUNCTION MORE METHODICALLY IT BEGAN TO UNLOCK THE UNDERLYING PSYCHOLOGICAL ISSUES THE CHURCH NOW APPLIES THIS KNOWLEDGE WHEN DEALING WITH ALL SUCH CASES THE PROOF LIES IN THE PREVENTION TREATMENT AND FORMAL MISCONDUCT POLICIES NOW FOUND IN DIOCESES ACROSS THE NATION CULMINATING IN THE RECENT BISHOPS' VOTE MORE EVIDENCE RESIDES IN THE CHURCH'S PROVISION OF PASTORAL CARE INCLUDING EXTENSIVE PSYCHOLOGICAL HELP TO VICTIMS OF ALLEGED PRIESTLY SEXUAL MISCONDUCT BUT CHURCH EFFORTS TO ADDRESS THE ISSUE HAVE NOT BEEN HELPED BY THE DISPROPORTIONATE MEDIA ATTENTION PAID TO PRIESTLY MISCONDUCT INCIDENTS CATHOLICS DO NOT SEEK PREFERENTIAL TREATMENT THEY DO EXPECT FAIR COVERAGE WHAT OFTEN GOES UNREPORTED IS THAT THE VAST MAJORITY OF SEXUAL ABUSE OCCURS WITHIN THE FAMILY THAT SEXUAL MISCONDUCT IS AT LEAST EQUALLY PREVALENT IN THE SECULAR COUNSELING PROFESSIONS AND THAT CATHOLIC PRIESTS HAVE NO MONOPOLY ON SEXUAL MISCONDUCT THE ILLNESS CUTS ACROSS RELIGIOUS LINES PEDOPHILIA INVOLVES ONLY A VERY SMALL FRACTION OF PRIESTS FOR EVERY PRIEST ACCUSED RIGHTLY OR WRONGLY OF SEXUAL MISCONDUCT THOUSANDS LIVE OUT THEIR PROMISE OF CELIBACY DOING THE WORK OF FAITH SELFSACRIFICE AND SERVICE BUT FEW REPORTERS FIND THAT FACT NEWSWORTHY INSTEAD MEDIA EFFORTS TO EXPLAIN THE PRIESTPEDOPHILIA CRISIS OFTEN CONFUSE THE ISSUE FURTHER BY SCAPEGOATING CELIBACY PRIESTLY SEXSCANDAL ALLEGATIONS FUEL THE IMPLICIT THOUGH HISTORICALLY INSUPPORTABLE NOTION THAT CELIBACY ITSELF IS A KIND OF DYSFUNCTION BUT THE SCIENTIFIC EVIDENCE SHOWS THAT CELIBACY HAS NO BEARING ON PEDOPHILIA MEANWHILE THE MEDIA CIRCUS SURROUNDING THE BERNARDIN ALLEGATIONS WHILE DEMORALIZING SOME CATHOLICS HAS ANGERED OTHERS THE ANGER SPRINGS FROM A GROWING SUSPICION THAT THE ATTENTION PAID TO THE PEDOPHILIA CRISIS IS AT TIMES MOTIVATED MORE BY VINDICTIVENESS THAN BY THE SEARCH FOR TRUTH IN THE CONTEXT OF THE WIDER CULTURE THE CATHOLIC CHURCH STANDS FOR A SEXUAL MORALITY BASED ON FIDELITY AND MONOGAMY WITHIN THE TRADITIONAL FAMILY IT PREACHES SELFDISCIPLINE AND A DIVINE PURPOSE GOVERNING HUMAN SEXUAL EXPRESSION THESE ARE BITTERLY DISPUTED NOTIONS AND WHILE THEY MAY NOT DIRECTLY RELATE TO THE SEXUAL MISCONDUCT ISSUE THEY SURELY DRIVE SOME OF TODAY'S MEDIA EAGERNESS TO CAPTURE THE CHURCH AT ITS PERCEIVED HYPOCRITICAL WORST THE RESULT IS GOOD HEADLINES BUT BAD JOURNALISM UNDER THE LAW SUSPECTS ARE INNOCENT UNTIL PROVEN GUILTY IT'S A STANDARD EDITORS AND REPORTERS MAY WANT TO EXAMINE MORE CLOSELY AND LIVE BY MORE FAITHFULLY FATHER NICKLESS IS VICAR GENERAL AND SECRETARY FOR PRIESTS AND SEMINARIANS FOR THE ARCHDIOCESE OF DENVER 9311300006 931130 INTERNATIONAL CANADA'S LIBERAL GOVERNMENT PREDICTS A RECORD HIGH DEFICIT IN FISCAL 1994 BY JOHN URQUHART AND CHRISTOPHER J CHIPELLO STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA CANADA'S NEW LIBERAL PARTY GOVERNMENT CONFRONTED WITH RISING TAX EVASION AND OTHER FISCAL PROBLEMS PREDICTED THAT THE FEDERAL BUDGET DEFICIT WILL TOTAL AT LEAST 44 BILLION CANADIAN DOLLARS US33 BILLION IN ITS 1994 FISCAL YEAR THE PROJECTED DEFICIT WOULD BE A RECORD FIGURE PUSHING THE FEDERAL GOVERNMENT'S DEBT ABOVE C500 BILLION THE 1994 FISCAL YEAR ENDS MARCH 31 1994 THE BIG DEFICIT IS EXPECTED TO RULE OUT MAJOR SPENDING INITIATIVES BY THE LIBERAL GOVERNMENT WHICH TOOK OFFICE NOV 4 THE LIBERALS REPLACED THE PROGRESSIVE CONSERVATIVE PARTY WHICH HAD GOVERNED CANADA FOR NINE YEARS CANADIAN GOVERNMENT BOND PRICES WERE LITTLE CHANGED ON THE DEFICIT NEWS US AND OTHER FOREIGN INVESTORS HOLD MORE THAN 42 OF THE CANADIAN GOVERNMENT'S BONDS FINANCE MINISTER PAUL MARTIN WHO DISCLOSED THE DEFICIT PROJECTION IN A SPEECH IN MONTREAL YESTERDAY SAID THE LIBERAL GOVERNMENT IS COMMITTED TO DEFICIT REDUCTION NO ONE SHOULD BE UNDER ANY MISAPPREHENSION ABOUT THAT THE GOVERNMENT'S GOAL WITHIN THREE YEARS IS TO REDUCE THE DEFICIT TO 3 OF GROSS DOMESTIC PRODUCT OR ABOUT HALF ITS CURRENT LEVEL GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE COUNTRY MR MARTIN BLAMED A COMBINATION OF FACTORS INCLUDING INCREASED TAX EVASION FOR THE DETERIORATION IN THE GOVERNMENT'S FISCAL OUTLOOK IN RECENT MONTHS THE PROJECTED FISCAL 1994 DEFICIT IS 35 HIGHER THAN PREDICTED BY THE PREVIOUS CONSERVATIVE GOVERNMENT IN ITS BUDGET LAST APRIL MORE AND MORE PEOPLE CONSIDER IT ACCEPTABLE NOT TO PAY TAXES MR MARTIN SAID SINCE THE APRIL BUDGET HE SAID THE GOVERNMENT HAS RAISED ITS ESTIMATE OF THE TAX REVENUE LOST FROM TOBACCO SMUGGLING BY UP TO C600 MILLION US451 MILLION THE SMUGGLING HAS BEEN PROMPTED BY A RISE IN CANADIAN CIGARETTE TAXES TO MORE THAN FIVE TIMES THE US AVERAGE MR MARTIN IS EXPECTED TO BRING IN HIS FIRST COMPREHENSIVE MEASURES TO DEAL WITH THE DEFICIT IN A BUDGET EARLY IN 1994 AS A COSTCUTTING MOVE THE GOVERNMENT ON ITS FIRST DAY IN OFFICE SCRAPPED A C48 BILLION US36 BILLION HELICOPTERPROCUREMENT PROGRAM TOM D'AQUINO PRESIDENT OF THE BUSINESS COUNCIL ON NATIONAL ISSUES SAID THERE IS ABSOLUTELY NO ROOM TO RAISE TAXES TO DEAL WITH THE DEFICIT WE HAVE GOT A RAMPANT UNDERGROUND ECONOMY BECAUSE OF THE COUNTRY'S HIGH TAXES HE SAID THE COUNCIL REPRESENTS THE CHIEF EXECUTIVES OF CANADA'S LARGEST CORPORATIONS MR MARTIN SAID WEAKER THAN EXPECTED ECONOMIC GROWTH ALSO HAS WORSENED THE DEFICIT BY SLOWING THE RISE IN THE GOVERNMENT'S REVENUE HE SAID THE ECONOMY IS NOW EXPECTED TO GROW 25 THIS YEAR AND 3 NEXT YEAR THE APRIL BUDGET PREDICTED GROWTH OF 29 IN 1993 AND 46 IN 1994 MR MARTIN DECLINED TO SAY WHETHER HE WOULD APPROVE THE APPOINTMENT OF BANK OF CANADA GOVERNOR JOHN CROW TO A SECOND SEVENYEAR TERM MR CROW'S TERM EXPIRES AT THE END OF JANUARY THE FINANCE MINISTER TOLD REPORTERS THAT AN ANNOUNCEMENT ON THE MATTER WOULD BE MADE IN DUE COURSE HIS REMARK PROMPTED A DROP IN THE CANADIAN DOLLAR WHICH CLOSED IN TORONTO AT 7486 US CENTS OFF A THIRD OF A CENT FROM FRIDAY LLOYD ATKINSON BANK OF MONTREAL'S CHIEF ECONOMIST SAID HE DOESN'T EXPECT AN ANNOUNCEMENT ON MR CROW'S FUTURE UNTIL LATE DECEMBER MR CROW IS HIGHLY REGARDED BY BANKERS BECAUSE OF HIS DETERMINATION TO ACHIEVE STABLE PRICES BEFORE TAKING OFFICE THE LIBERAL PARTY SHARPLY CRITICIZED MR CROW'S MONETARY VIEWS CLAIMING HE SACRIFICED JOBS TO ACHIEVE LOW INFLATION MR MARTIN HOWEVER SAID YESTERDAY THAT HIS WORKING RELATIONSHIP WITH MR CROW IS VERY VERY GOOD 9311300005 931130 MARKETING & MEDIA JOHN LABATT SUES MOLSON AND MILLER IN TRADEMARK DISPUTE TORONTO JOHN LABATT LTD CARRIED ITS TRADEMARK WAR INTO THE US MARKET FILING A SUIT IN US FEDERAL COURT IN DETROIT YESTERDAY ALLEGING THAT MOLSON BREWERIES AND MILLER BREWING VIOLATED ITS EXCLUSIVE RIGHT TO USE THE PHRASES ICE BEER AND ICE BREWING LABATT'S SUIT CLAIMS MILLER AND MOLSON USED UNFAIRTRADE PRACTICES IN THE PROMOTION OF THEIR ICEBEER PRODUCTS IN THE US LABATT IS SEEKING A PERMANENT INJUNCTION BARRING THE COMPANIES FROM USING THE PHRASES IN MARKETING THE PRODUCTS AS WELL AS UNSPECIFIED DAMAGES LABATT IN JULY LAUNCHED A SIMILAR SUIT AGAINST MOLSON ITS RIVAL IN THE CANADIAN MARKET IT ALLEGES THAT MOLSON FALSELY SPECIFIED ITS BRANDS ARE ICEBREWED A TERM LABATT SAID IT CREATED TO REFER TO ITS EXCLUSIVE PROCESS WHICH INVOLVES CHILLING AND THEN ICEFILTERING THE BEER A SPOKESMAN FOR MILLER CALLED THE SUIT GROUNDLESS AND FRIVOLOUS HE SAID MILLER BELIEVES LABATT CANNOT APPROPRIATE A BREWING TERM THAT HAS BEEN IN USE IN GERMANY FOR AT LEAST A CENTURY OFFICIALS AT MOLSON COULDN'T BE REACHED MOLSON BREWERIES IS A JOINT VENTURE OF MOLSON COS OF TORONTO AND AUSTRALIA'S FOSTER'S BREWING GROUP IN JANUARY IT SOLD ITS US MARKETING AND DISTRIBUTION OPERATIONS TO MILLER BREWING A UNIT OF PHILIP MORRIS COS WHICH MARKETS MOLSON'S ICE BEER IN THE US AS WELL AS ITS OWN ICE HOUSE BRAND BOTH LABATT AND MOLSON LAUNCHED THEIR ICEBEER BRANDS EARLY THIS YEAR MOLSON AND MILLER INTRODUCED THEIR PRODUCTS IN THE US DURING THE SUMMER WITH LABATT FOLLOWING SUIT IN OCTOBER 9311300004 931130 WHO'S NEWS SCOTT PAPER'S CEO SETS RETIREMENT DATE 3RDQUARTER NET FELL PHILADELPHIA SCOTT PAPER CO SAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER PHILIP E LIPPINCOTT 58 YEARS OLD PLANS TO RETIRE APRIL 1 AFTER 34 YEARS WITH THE COMPANY SCOTT PAPER SAID IT IS IN THE MIDST OF DEVISING A NEW BUSINESS STRATEGY IN THE FACE OF SLUGGISH GROWTH AND AN INDUSTRYWIDE PAPER PRICE SLUMP A SPOKESMAN SAID A NEW TOP EXECUTIVE WOULD PLAY A KEY ROLE IN PUTTING A NEW PLAN INTO EFFECT A SPOKESMAN DECLINED TO COMMENT ON WHETHER SUCH STEPS COULD INVOLVE WRITEDOWNS LAYOFFS OR OTHER CUTBACKS HOWEVER IN ITS FINANCIAL REPORT FOR THE NINE MONTHS ENDED SEPT 30 MR LIPPINCOTT CALLED THE COMPANY'S EARNINGS PERFORMANCE UNSATISFACTORY AND WARNED THAT THE COMPANY WAS EXPLORING MANY COSTREDUCTION AND PRODUCTIVITY OPPORTUNITIES THAT COULD RESULT IN A SIGNIFICANT SPECIAL CHARGE IN 1993 THIRDQUARTER NET INCOME FELL TO 246 MILLION OR 33 CENTS A SHARE FROM THE YEAREARLIER 306 MILLION OR 41 CENTS A SHARE WHILE SALES FELL TO 118 BILLION FROM 129 BILLION SCOTT PAPER SAID NET FOR THE QUARTER ROSE 18 IF THE EFFECT OF THE NEW FEDERAL CORPORATE TAX RATE IS EXCLUDED NET FOR THE NINE MONTHS FELL TO 933 MILLION OR 126 A SHARE FROM 1224 MILLION OR 165 A SHARE SALES FELL TO 354 BILLION FROM 381 BILLION THE LATEST NINE MONTHS INCLUDED A GAIN OF 217 MILLION OR 29 CENTS A SHARE FROM THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE THE COMPANY SAID MR LIPPINCOTT AND THE BOARD HAD AN UNDERSTANDING THAT HE WOULD STEP DOWN AFTER 10 YEARS AS CHIEF EXECUTIVE HE HAS HELD THE JOB FOR 12 YEARS SCOTT PAPER SAID IT HAS FORMED A SEARCH COMMITTEE AND WILL CONSIDER CANDIDATES INSIDE AND OUTSIDE THE COMPANY 9311300003 931130 BUSINESS BRIEF NEW VALLEY FILES REORGANIZATION PLAN APOLLO ADVISORS WOULD HAVE 53 STAKE UPPER SADDLE RIVER NJ NEW VALLEY CORP FILED A REORGANIZATION PLAN THAT AS EXPECTED WOULD GIVE CONTROL OF THE COMPANY TO APOLLO ADVISORS LP AN INVESTMENT COMPANY CONTROLLED BY LEON BLACK UNDER TERMS OF THE PLAN APOLLO WILL OWN 53 OF THE REORGANIZED COMPANY'S STOCK THE PLAN PROJECTS NEW VALLEY WILL EMERGE FROM FEDERAL BANKRUPTCY PROTECTION PROCEEDINGS IN MARCH WHEN THE PLAN IS APPROVED APOLLO WILL MAKE A 45 MILLION CASH INFUSION AND ACQUIRE 650000 NEW VALLEY CLASS A PREFERRED SHARES HELD BY BROOKE GROUP LTD NEW YORK THROUGH A PREVIOUSLY ANNOUNCED SWAP OF BROOKE GROUP DEBT FOR THE PREFERRED SHARES BROOKE GROUP WHICH CONTROLLED NEW VALLEY WHEN THE COMPANY FILED FOR PROTECTION AGAINST CREDITORS IN MARCH WON'T HOLD AN INTEREST IN THE REORGANIZED CONCERN ELECTRONIC DATA SYSTEMS A UNIT OF GENERAL MOTORS CORP DETROIT WILL HOLD A 75 STAKE IN THE REORGANIZED COMPANY AND HOLDERS OF THE 850000 NONBROOKE GROUP CLASS A SHARES WILL HOLD JUST UNDER A 40 STAKE IN THE NEW COMPANY CREDITORS WILL RECEIVE 85 TO 100 OF THEIR CLAIMS UNDER THE PLAN AND NEW VALLEY'S CLASS B CONVERTIBLE PREFERRED AND COMMON STOCK WILL BE ELIMINATED THE NEW COMPANY WOULD HAVE 172 MILLION SHARES OUTSTANDING AND WOULD APPLY FOR A LISTING ON A NATIONAL STOCK EXCHANGE BASED ON APOLLO'S 45 MILLION EQUITY INVESTMENT EQUIVALENT TO A 225 STAKE IN THE COMPANY REORGANIZED NEW VALLEY WILL BE VALUED AT ABOUT 200 MILLION NEW VALLEY WHICH OWNS WESTERN UNION FINANCIAL SERVICES INC SAID THE PLAN WILL BE CONSIDERED BY THE COURT ON JAN 7 9311300002 931130 COMPUTER GIANTS DUEL OVER OPERATING SYSTEMS WINDOWS NT POSES CHALLENGE FOR MICROSOFT BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP'S BID TO DOMINATE THE SOFTWARE MARKET FOR NETWORKS OF ADVANCED DESKTOP COMPUTERS IS OFF TO A SLOW START POSING A PERCEPTION PROBLEM FOR A GIANT THAT HAS ENJOYED A STRING OF INSTANT HITS THE COMPANY INVESTED MORE THAN 150 MILLION TO DEVELOP AN OPERATING SYSTEM CALLED WINDOWS NT A SOPHISTICATED COUSIN OF THE ORIGINAL WINDOWS PROGRAM THAT CONTROLS THE SCREENS OF 40 MILLION PERSONAL COMPUTERS MICROSOFT'S NEW PRODUCT IS DESIGNED TO EXPAND ITS DOMINION TO WORKSTATIONS AND MIDRANGE SYSTEMS THE COMPANY'S BET WON'T PAY OFF QUICKLY WILLIAM GATES CHIEF EXECUTIVE OFFICER SET A SALES TARGET OF ONE MILLION COPIES OF WINDOWS NT IN THE FIRST 12 MONTHS AFTER FOUR MONTHS ABOUT 250000 COPIES HAVE BEEN SOLD AMONG THE OBSTACLES COMPANIES ARE CAUTIOUS ABOUT ADOPTING SUCH A NEW PROGRAM TO MANAGE CRITICAL DATAPROCESSING OPERATIONS AND NT REQUIRES TOO MUCH MEMORY TO RUN ON MOST PERSONAL COMPUTERS IT'S GOING TO TAKE LONGER THAN MOST PEOPLE THINK SAYS MICHAEL DELL CHAIRMAN OF DELL COMPUTER CORP MICROSOFT IS ALSO ENCOUNTERING STIFF RESISTANCE FROM COMPETITORS INCLUDING THE UNIX OPERATING SYSTEM A LINGUA FRANCA OF NETWORKS WHOSE MOST AGGRESSIVE PROPONENT IS SUN MICROSYSTEMS INC FROM NOVELL INC NO 1 IN SOFTWARE THAT MANAGES PERSONALCOMPUTER NETWORKS AND FROM INTERNATIONAL BUSINESS MACHINES CORP WHOSE COMPETING OS/2 SOFTWARE IS FINALLY MAKING HEADWAY ON COMPANY DESKTOPS MICROSOFT ROSE TO SUPREMACY IN THE PERSONALCOMPUTER MARKET ON THE STRENGTH OF ITS WINDOWS AND DOS OPERATING SYSTEMS THE STAKES IN NETWORKING SOFTWARE COULD BE EQUALLY LARGE AS COMPANIES MOVE CRITICAL DATAPROCESSING OPERATIONS FROM MAINFRAME COMPUTERS TO NETWORKS OF PCS AND MIDSIZE MACHINES CALLED SERVERS IN THE 1980S WE STOOD AROUND AND WATCHED WHILE MICROSOFT TOOK OVER SAYS ED ZANDER CHIEF OF SUN'S SOFTWARE UNIT THIS TIME AROUND MICROSOFT WILL HAVE TO WORK A LOT HARDER GIVEN ITS MARKETING POWER THOUGH MICROSOFT IS STILL THE FAVORITE MANY MARKET WATCHERS INCLUDING INTERNATIONAL DATA CORP AND DATAQUEST INC PREDICT WINDOWS NT WILL BE OUTSELLING OTHER HIGHEND OPERATING SYSTEMS IN THREE YEARS MICROSOFT IS STEPPING UP ITS PITCH TO CUSTOMERS PROMISING IMPROVEMENTS IN WINDOWS NT WHILE TALKING UP TWO UNRELEASED OPERATING PROGRAMS CODENAMED CHICAGO AND CAIRO THAT COULD FILL GAPS IN ITS PRODUCT LINE NEWS MEDIA ARE ANOTHER TARGET EXECUTIVES FROM FIVE COMPUTER MAKERS CONTACTED BY MICROSOFT'S PUBLICRELATIONS FIRM PLACED CALLS TO A REPORTER ABOUT WINDOWS NT SALES WINDOWS NT HAS SEVERAL THINGS BUYERS LIKE DATA SECURITY FEATURES FOR EXAMPLE PROTECT SENSITIVE COMPANY RECORDS THE PROGRAM WORKS WITH COMPUTERS THAT USE MULTIPLE MICROPROCESSORS TO INCREASE COMPUTING POWER AND IT WAS DESIGNED TO WORK ON COMPUTERS THAT RUN ON ANY OF THREE DIFFERENT MICROPROCESSORS AND IS SLATED TO WORK WITH THREE MORE A KEY FACTOR FOR CUSTOMERS THAT DON'T WANT TO BE LOCKED INTO ONE HARDWARE VENDOR ANALYSTS EXPECT SOFTWARE DEVELOPERS TO WRITE NEW PROGRAMS THAT TAKE FULL ADVANTAGE OF WINDOWS NT AND COST LESS THAN PROGRAMS FOR MACHINES BASED ON THE UNIX OPERATING SYSTEM WINDOWS NT CAN ALSO RUN THOUSANDS OF LESSEXPENSIVE PROGRAMS FOR THE OLDER WINDOWS SYSTEM THOUGH AT A PENALTY IN PERFORMANCE THOUGH SOME CUSTOMERS ARE WAITING FOR MORE WINDOWS NT PROGRAMS TO BE WRITTEN BEFORE BUYING MICROSOFT SAYS ABOUT 200 ARE NOW SHIPPING AND MANY MORE ARE ON THE WAY THERE IS A PERFECT INDICATOR OF OPERATING SYSTEM SUCCESS AND THAT IS WHAT SOFTWARE DEVELOPERS ARE DOING MR GATES SAYS BUT WINDOWS NT REQUIRES 16 MEGABYTES OF MEMORY ABOUT FOUR TIMES THE AMOUNT FOUND ON MOST PCS ONCE STYLED AS A MASSMARKET PRODUCT MICROSOFT HAS SHIFTED ITS TARGET TO SERVERS AND WORKSTATIONS THAT REQUIRE A LONG CUSTOMER EVALUATION PERIOD BEFORE PURCHASE YET THE VISION OF A QUICK TAKEOFF LINGERED OUTSIDE THE COMPANY WE'VE BEEN TRYING TO SET PEOPLE'S EXPECTATIONS AND WE FAILED ACKNOWLEDGES JONATHAN LAZARUS MICROSOFT'S VICE PRESIDENT OF SYSTEM STRATEGY IN AN INTERVIEW LAST MONTH MR GATES SAID WINDOWS NT SALES WERE RUNNING ABOVE INTERNAL PROJECTIONS OTHER EXECUTIVES NOW SOUND LESS BULLISH BUT ARE STICKING TO THE 12MONTH TARGET OF ONE MILLION UNITS WE ARE EXCEEDING OUR EXPECTATIONS BUT WE ARE NOT BLOWING THEM OUT SAYS JAMES ALLCHIN VICE PRESIDENT OF ADVANCED SYSTEMS MANY COMPANIES WOULD BE GLAD TO SELL 250000 COPIES OF ANYTHING IN FOUR MONTHS SUN BY CONTRAST SOLD 140000 COPIES OF ITS VERSION OF UNIX IN THE YEAR ENDED LAST JUNE BUT WINDOWS NT'S PROGRESS DOESN'T STACK UP TO HITS LIKE MICROSOFT'S DOS 60 WHICH SOLD ABOUT SIX MILLION COPIES IN 90 DAYS COMPUTERWORLD MAGAZINE IN A RECENT SURVEY REPORTED THAT 51 OF 238 POTENTIAL USERS SAID IT WAS VERY UNLIKELY OR SOMEWHAT UNLIKELY THAT THEIR COMPANIES WOULD ADOPT WINDOWS NT AS A STANDARD ON SERVERS YET ANOTHER SURVEY BY DATAQUEST FOUND THAT WINDOWS NT WAS THE NO 1 PURCHASE PROJECTED FOR 1995 AND 1996 BY 1000 COMPUTERSYSTEMS PROFESSIONALS SAYS RIKKI KERZNER AN ANALYST FOR THE MARKETRESEARCH FIRM SOME CUSTOMERS ARE EXPECTED TO WAIT FOR CHICAGO A WINDOWS UPGRADE FOR PCS DUE OUT IN MID1994 NT ALMOST LOOKS LIKE A PLACE HOLDER FOR CHICAGO SAYS BOB HOLMES A COMPUTERTECHNOLOGY RESEARCH ANALYST AT SOUTHERN CALIFORNIA GAS A HEAVY OS/2 USER MICROSOFT INSISTS IT'S PREPARED FOR A LONG PUSH WE'VE GOT THE LARGEST PRODUCT GROUP AT MICROSOFT WORKING ON MAKING NT DRAMATICALLY BETTER MR ALLCHIN SAYS WE ARE HEAVILY COMMITTED TO THIS SUCKER KYLE POPE CONTRIBUTED TO THIS ARTICLE SEE RELATED ARTICLE IBM'S OS/2 IS MORE SUCCESSFUL THAN EXPECTED WSJ NOV 30 1993 9311300001 931130 LETTERS TO THE EDITOR SERBIANS WERE HEROES TO DOWNED US AIRMEN I AM RESPONDING TO THE CROATIAN CHARGE THAT THE SERBIAN PEOPLE AND THE CHETNIKS COLLABORATED WITH THE NAZIS DURING WORLD WAR II THE CASE AGAINST SERBIAAGAIN EDITORIAL PAGE OCT 12 THE STATEMENTS CONTAINED IN THIS ARTICLE ARE IDENTICAL TO THE PROPAGANDA THAT AMERICAN BOMBER CREWS HEARD IN THEIR DAILY BRIEFINGS FROM A SADLY MISINFORMED STATE DEPARTMENT AND AMERICAN INTELLIGENCE 50 YEARS AGO WE WERE REPEATEDLY TOLD THAT IF WE WERE SHOT DOWN OVER GERMANOCCUPIED YUGOSLAVIA TO STAY AWAY FROM GEN MIHAILOVICH AND THE SERBIAN PEOPLE AS THEY ARE COLLABORATING WITH THE GERMANS AND WILL CUT OFF YOUR EARS' AND TURN YOU OVER TO THEM ONLY AFTER WE WERE SHOT DOWN DID WE FIND OUT FOR OURSELVES HOW FALSE THESE CHARGES WERE OUR COMMITTEE REPRESENTS MORE THAN 500 AMERICAN AIRMEN WHO WERE SHOT DOWN OVER YUGOSLAVIA DURING WORLD WAR II AND SAVED BY THE SERBIAN PEOPLE AND THE CHETNIKS TO THIS DAY IT REMAINS THE LARGEST RESCUE OF AMERICAN LIVES FROM BEHIND ENEMY LINES IN HISTORY IN MY OWN EXPERIENCE I BEAR PERSONAL WITNESS TO THE MASSACRE OF 200 SERBIAN WOMEN AND CHILDREN BY THE NAZIS BECAUSE THE YUGOSLAV COMMANDERINCHIEF GENERAL MIHAILOVICH A SERB WOULD NOT TURN OVER ME AND MY CREW TO THEM MOST REGRETTABLY THE TRUTH ABOUT ONE OF THE MOST GLORIOUS MOMENTS IN AIR FORCE HISTORY HAS BEEN COVERED UP ALL THESE YEARS BECAUSE OF TOTALLY UNRELATED POLITICAL ISSUES IN EVALUATING THE OBJECTIVITY OF YOUR ARTICLE IT SHOULD BE NOTED THAT CROATIA WAS AN ALLY OF NAZI GERMANY DURING WORLD WAR II AND FORMALLY DECLARED WAR AGAINST THE US WHILE SERBIA WAS OUR ALLY 9311300099 931012 THE CASE AGAINST SERBIA AGAIN FROM EIGHT SERBIANAMERICAN SCHOLARS WHO WROTE IN THE WALL STREET JOURNAL ON SEPT 21 ONE MIGHT HAVE HOPED FOR A CONDEMNATION OF THE PANSERBIAN DICTATORSHIP'S SEIZURE OF TERRITORY AND GENOCIDE IN CROATIA AND BOSNIAHERZEGOVINA AND ALSO THE CONDEMNATION OF ITS GENOCIDE IN KOSOVO AGAINST THE OVERWHELMINGLY ALBANIAN POPULATION INSTEAD THEY WROTE AN APOLOGY FOR GENOCIDE ALMOST AS BLATANT AS THE LETTER FROM BELGRADE PRINTED BY THE JOURNAL ON OCT 6 THE SIGNERS OF THE BELGRADE LETTER INCLUDE THE PRINCIPAL AUTHORS HEADED BY DOBRICA COSIC OF THE NOTORIOUS MEMORANDUM OF THE SERBIAN ACADEMY OF ARTS AND SCIENCES IN 1986 THAT PARANOID 1986 MEMORANDUM IS WIDELY RECOGNIZED AS THE WARRANT FOR THE ETHNIC CLEANSING OF NONSERBS UNDERTAKEN SINCE THEN BY THE DICTATORSHIP BOTH SETS OF SERBIAN AUTHORS ATTEMPT TO QUESTION THE CALL FOR WESTERN MILITARY AS WELL AS MORAL INTERVENTION IN THE BALKANS MADE BY THE SIGNATORIES TO AN OPEN LETTER TO PRESIDENT CLINTON AND OTHER HEADS OF STATE THAT WAS PUBLISHED IN THE JOURNAL SEPT 2 THE OPEN LETTER SIGNED NOT ONLY BY MARGARET THATCHER THE FORMER BRITISH PRIME MINISTER BUT ALSO BY MANY OTHER FORMER HEADS OF STATE OUTSTANDING STATESMEN AND MAJOR FIGURES IN THE ARTS AND SCIENCES AND BY SERBS AS WELL AS CROATIANS BOSNIANS AND KOSOVARS WHO UNEQUIVOCALLY OPPOSE ETHNIC CLEANSING PROTESTED NOT ONLY THE CLEARCUT AGGRESSION AND GENOCIDE BY SERBIA IN CROATIA AND BOSNIA BUT THE CROATIAN ETHNIC CLEANSING IN BOSNIA THAT FOLLOWED THE UNITED NATIONS AND EUROPEAN COMMUNITY'S SHAMELESS ENDORSEMENT OF APARTHEID THE FORCIBLE PARTITION OF BOSNIAHERZEGOVINA INTO ETHNICALLY PURE AREAS BOTH SETS OF SERBIAN AUTHORS ATTEMPT TO PORTRAY THE CURRENT WAR IN THE BALKANS AS A CIVIL WAR NOT A WAR OF SERBIAN AGGRESSION AGAINST HER NEIGHBORS AND SAY THAT NO SANE SERB HAD EVER THOUGHT OF STARTING SUCH A LUNATIC PROCESS AS ETHNIC CLEANSING BUT IN FACT THE BELGRADE DICTATORSHIP INITIATED THE GENOCIDE IN EXYUGOSLAVIA THIS HAS BEEN DOCUMENTED IN REPORTS BY THE US STATE DEPARTMENT THE EUROPEAN COMMUNITY HELSINKI WATCH MEDICINS SANS FRONTIERES AMNESTY INTERNATIONAL MANY DEMOCRATIC AND REPUBLICAN MEMBERS OF CONGRESS WHO MONITOR THE HELSINKI RIGHTS ACCORDS FOR THE COMMISSION ON SECURITY AND COOPERATION IN EUROPE ALONG WITH FIRSTHAND EYEWITNESS NEWS ACCOUNTS BY MANY OBJECTIVE REPORTERS NOT TO MENTION THE EVIDENCE AVAILABLE DAILY TO ANYONE WITH A TV SET IN LINE WITH THE STRATEGY OF BLAMING THE VICTIM THESE AUTHORS BLAME THE SLOVENES CROATS AND MUSLIMS FOR THE CURRENT BALKAN WAR WHILE AT THE SAME TIME BLAMING THE US THE US AIR FORCE AND MARGARET THATCHER FOR ALLEGEDLY VICTIMIZING SERBIA ON THE OTHER HAND THEY ASCRIBE ALL POSITIVE HISTORICAL ATTRIBUTES TO SERBS AND SERBIA AS SUPPOSED COFOUNDERS OF THE UNITED NATIONS WHOSE CHARTER AND CONVENTION ON GENOCIDE IRONICALLY PROSCRIBES PRECISELY THE ACTIVITY THE SERBS HAVE BEEN CARRYING ON UNDER THEIR OWN EUPHEMISM ETHNIC CLEANSING THE EIGHT SERBIANAMERICANS QUOTE CHURCHILL'S PRAISE OF A SERBLED YUGOSLAVIAN GOVERNMENT FOR ALIGNING ITSELF WITH BRITAIN IN WORLD WAR II BUT THEY FORGET THAT CHURCHILL LATER IN THE WAR SWITCHED HIS SUPPORT TO THE YUGOSLAV PARTISANS BECAUSE OF THE CHETNIK COLLABORATION WITH THE NAZI OCCUPIERS IT IS TEMPTING TO LAY ASIDE THIS OBVIOUSLY FALSE XENOPHOBIC AND MYTHICAL CHAUVINIST PROPAGANDA A CHARACTERISTIC PREFACE AND JUSTIFICATION FOR WAR YET IT MUST BE ADDRESSED BECAUSE SERBIAN PROPAGANDA HAS BEEN HIGHLY EFFECTIVE IN EXPLOITING WORLD OPINION FOR EXAMPLE SERBIAN QUASIHISTORICAL DISCUSSIONS OF NAZISM AS A MOVEMENT THAT AFFECTED ALMOST ALL OF EUROPE EXCEPT SERBIA ARE USED BY THESE AUTHORS TO EXCUSE AND JUSTIFY CONTEMPORARY PANSERBIAN AGGRESSION BUT IT IS A FACT CAREFULLY SUPPRESSED BY THESE AND OTHER SERBIAN AUTHORS THAT SERBIA COLLABORATED ACTIVELY WITH THE NAZIS PRIOR TO AND DURING WORLD WAR II AND WAS NOT JUST PASSIVELY OCCUPIED THE SERBIAN NAZI QUISLING DICTATOR MILAN NEDIC BOASTED TO HITLER THAT BELGRADE WAS THE FIRST EUROPEAN CITY TO BE JEWFREE AS A RESULT OF THIS WIDESPREAD SERBIAN COLLABORATION WITH THE NAZIS 94 OF SERBIA'S JEWS WERE EXTERMINATED IT IS IMPORTANT TO NOTE THESE FACTS IN ORDER TO GAUGE THE DISHONESTY OF THESE AUTHORS TO POINT OUT HOW SERBIAN PROPAGANDA HAS MANIPULATED THE SENTIMENTS OF THE WORLD'S JEWISH COMMUNITY AND TO NOTE A STRIKING PARALLEL BETWEEN HITLER'S AND THE CURRENT BELGRADE DICTATORSHIP'S USE OF PROPAGANDA IN THEIR CAMPAIGNS FOR ETHNIC PURITY AND TERRITORIAL AGGRANDIZEMENT THROUGH THE USE OF MILITARY FORCE INDEED ANTO KNEZEVIC IS CORRECT TO POINT OUT IN THE LONDON TIMES LITERARY SUPPLEMENT SEPT 24 THAT SIMILARITIES BETWEEN THE TWO SERBIAS NEDIC'S AND MILOSEVIC'S ARE OBVIOUS IN BOTH THEIR TACTICAL MEANS AND THEIR STRATEGIC GOAL IN BOTH CASES THE MEANS ARE THE SAME ETHNIC CLEANSING AND CONCENTRATION CAMPS DOBRICA COSIC IS MILOSEVIC'S JOSEPH GOEBBELS THE WORLD MUST NOT ALLOW ITSELF AGAIN TO BE DECEIVED BY BLATANT LIES USED TO JUSTIFY CRIMES AGAINST HUMANITY IN PARTICULAR IT IS A LIE TO STATE AS THESE SERBIAN AUTHORS DO THAT THE CURRENT WAR IN BOSNIAHERZEGOVINA IS A CIVIL WAR PURE AND SIMPLE THIS IS A WAR ORCHESTRATED AND WAGED BY THE BELGRADE DICTATORSHIP AGAINST DULY RECOGNIZED NATIONSTATES BOSNIAHERZEGOVINA AND CROATIA AND THEREFORE CONSTITUTES A WAR OF AGGRESSION PURE AND SIMPLE MOREOVER THE WAR IN BOSNIAHERZEGOVINA IS THE THIRD WAR THAT THE YUGOSLAV FEDERAL ARMY AND SERBIA BEGAN ON THE TERRITORY OF THE FORMER YUGOSLAVIA THE FIRST WAR BEGAN IN SLOVENIA IN JUNE 1991 LASTED 10 DAYS AND WAS LED BY THE YUGOSLAV FEDERAL ARMY IN THE NAME OF SAVING COMMUNISM AND YUGOSLAV UNITY IMAGINE THIS ARMY ONE OF THE LARGEST IN EUROPE ATTACKED WITHOUT PROVOCATION BY THE ALLEGEDLY VIOLENT SLOVENES AS THE SERBIAN AUTHORS CLAIM WITHIN WEEKS THE SECOND WAR WAS ALSO STARTED BY SERBIA AND THE YUGOSLAV FEDERAL ARMY IN CROATIA IN MID1991 SERBIANSPONSORED ETHNIC CLEANSING IS BEING COMMITTED IN VOJVODINA AND KOSOVO WHOSE AUTONOMOUS STATUS IN THE FORMER YUGOSLAVIA WAS DISMANTLED BY BELGRADE MACEDONIA IS UNDER DIRE THREAT OF SERBIAN AGGRESSION CONCENTRATION CAMPS MASS RAPES RITUAL MURDERS AND MASSACRES FELL UNDER THE EUPHEMISM ETHNIC CLEANSING WHOSE ARCHITECTS AND EXECUTORS INCLUDE THE SERBIAN LEADERS SLOBODAN MILOSEVIC RADOVAN KARADZIC AND GEN RATKO MLADIC FIFTY YEARS AGO THE WEST COULD PLAUSIBLY ARGUE THAT WE DIDN'T KNOW WHAT THE NAZIS WERE DOING BUT THIS BALKAN WAR IS BROADCAST DAILY INTO THE LIVING ROOMS OF NEARLY THE ENTIRE WORLD DUE TO THE MIRACLE OF CNN AND OTHER INFORMATION MEDIA THE WORLD IS INVOLVED BY VIRTUE OF THE FACT THAT IT KNOWS ABOUT THE GENOCIDE AND AGGRESSION BEING COMMITTED IN THE BALKANS AND IT HAS A DUTY TO STOP THESE WAR CRIMES BECAUSE OF THIS CENTURY'S TRAGIC EXPERIENCE WITH NAZISM AND THE HOLOCAUST BECAUSE THE STABILITY OF POSTCOLD WAR EUROPE IS AT STAKE BECAUSE FORMERLY COMMUNIST NATIONS NEED ALL THE HELP AND INSPIRATION THEY CAN GET IN MAKING THE TRANSITION TO DEMOCRACY THIS LATEST PANSERBIAN AGGRESSION MUST BE STOPPED AND ITS IDEOLOGUES ORGANIZERS AND EXECUTORS MUST BE PUNISHED FOR ALL THESE REASONS WE AGREE WITH THE PREVIOUSLY PUBLISHED OPEN LETTER TO PRESIDENT CLINTON AND OTHER HEADS OF STATE ON BOSNIA AND THE FUTURE OF ETHNIC CLEANSING BECAUSE OF MR CLINTON'S ROLE AS LEADER OF THE FREE WORLD IT BECOMES HIS RESPONSIBILITY TO STOP PANSERBIAN AGGRESSION NOW BEFORE IT IS TOO LATE FOR SERBIA'S VICTIMS AND BEFORE IT IS TOO LATE TO DEFEND WESTERN IDEALS DERIVED FROM THE ENLIGHTENMENT INCLUDING PLURALISM JUSTICE AND FAIRNESS THE SIGNATORIES TO OUR LETTER INCLUDE PROMINENT CROATIANS BOSNIANS SERBS MONTENEGRINS KOSOVARS AMERICANS AND OTHERS WHO BELIEVE THAT MEN AND WOMEN OF DIFFERING RELIGIONS RACES LANGUAGES AND CULTURES CAN AND MUST BE ABLE TO LIVE TOGETHER IN FACT THE ATTEMPT TO SEGREGATE PEOPLE BY THESE FREQUENTLY OVERLAPPING AND INCOMPATIBLE CATEGORIES WHICH ARE ALL MEANINGS OF THE WORD ETHNIC IS LITERALLY IMPOSSIBLE AND EVEN REPUGNANT BY THE STANDARDS OF WESTERN MORAL PRINCIPLES AS SEN DANIEL PATRICK MOYNIHAN HAS SAID SUCH MISUSE OF ETHNICITY CAN ONLY LEAD TO PANDEMONIUM WE OPPOSE THE BELGRADE DICTATORSHIP'S POLICY OF ETHNIC CLEANSING WE REMIND THE WEST AGAIN THAT IT VALUES PLURALISM AND THEREFORE MUST NOT GIVE IN TO SERBIAN DEMANDS FOR ETHNIC PARTITION WESTERNERS OF PRINCIPLE MUST NOT ACQUIESCE TO SERBIAN PROPAGANDA STEVEN DEDIJER WISHES TO ADD HIS NAME TO YESTERDAY'S EDITORIAL PAGE ARTICLE THE CASE AGAINST SERBIA AGAIN MR DEDIJER A SERBIAN THEORETICAL PHYSICIST HEADED TITO'S ATOMIC ENERGY PROGRAM HE IS NOW A PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF LUND SWEDEN SEE RELATED LETTER LETTERS TO THE EDITOR SERBIANS WERE HEROES TO DOWNED US AIRMEN WSJ NOV 30 1993 9310120116 YY93 MM11 9311300096 931022 YOUR MONEY MATTERS WEEKEND REPORT HARSH REALITIES CALL FOR FINANCIAL SAFETY NET BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL FOR REASONS NO ONE MUCH CARES TO CONTEMPLATE FINANCIAL ADVISERS SAY IT IS CRUCIAL TO HAVE A SAFETY NET COMPOSED OF ADEQUATE INSURANCE SUFFICIENT EMERGENCY MONEY AND CRITICAL ESTATEPLANNING DOCUMENTS PEOPLE DON'T WANT TO THINK ABOUT DEATH SICKNESS OR UNEMPLOYMENT SAYS LEWIS ALTFEST PRESIDENT OF LJ ALTFEST & CO A NEW YORK INVESTMENT ADVISER IT'S LIKE GOING TO THE DENTIST THEY KNOW THEY OUGHT TO DO IT BUT THEY ALSO KNOW THERE'S PAIN ATTACHED FINANCIAL PLANNERS SAY EVERYBODY'S SAFETY NET SHOULD INCLUDE SOME EMERGENCY MONEY BUT THE AMOUNTS SUGGESTED ARE ALL OVER THE LOT SOME EXPERTS SAY YOU SHOULD KEEP AS MUCH AS SIX MONTHS' SPENDING MONEY TUCKED AWAY IN SAFE CONSERVATIVE INVESTMENTS SUCH AS A MONEYMARKET FUND OR A SAVINGS ACCOUNT IN CASE YOU HAVE A MAJOR HOME REPAIR A LARGE MEDICAL BILL OR YOU LOSE YOUR JOB BUT WILLIAM JOHN MIKUS A MANAGING DIRECTOR WITH LOS ANGELES INVESTMENT ADVISER FINANCIAL DESIGN RECKONS THAT IS WAY TOO MUCH MONEY TO LEAVE IN INVESTMENTS THAT GENERATE LACKLUSTER LONGRUN RETURNS IF THERE'S ONLY A SMALL RISK THAT YOU'RE GOING TO GET CANNED WHY KEEP SIX MONTHS' LIVING EXPENSES IN A CHECKING ACCOUNT OR A SAVINGS ACCOUNT HE ASKS MR MIKUS SAYS A BETTER STRATEGY IS TO KEEP TWO MONTHS' LIVING EXPENSES IN A SHORTTERM BOND MUTUAL FUND SUCH AS NEUBERGER & BERMAN ULTRA SHORT BOND FUND OR DREYFUS SHORTTERM INCOME FUND AS A FALLBACK HE ADVISES SETTING UP A HOMEEQUITY LINE OF CREDIT WHICH YOU CAN DRAW ON IN AN EMERGENCY BUT MR MIKUS SAYS YOU SHOULD SET UP YOUR LINE OF CREDIT NOW BEFORE YOU LOSE YOUR JOB AND THE BANK DECIDES YOU'RE A BAD RISK IT'S ALWAYS BEST TO BORROW MONEY WHEN YOU DON'T NEED IT HE ADVISES ONCE THE EMERGENCY ARRIVES THE DOORS START SLAMMING IN YOUR FACE FINANCIAL EXPERTS SAY MANY PEOPLE FAIL TO GET ADEQUATE INSURANCE COVERAGE YOU SHOULD MAKE SURE YOU DON'T HAVE ANY GAPS IN YOUR INSURANCE SAYS JONATHAN POND A FINANCIAL PLANNER AND AUTHOR OF THE NEW CENTURY FAMILY MONEY BOOK DISABILITY AND UMBRELLA LIABILITY ARE THE MOST FREQUENT GAPS THAT PEOPLE HAVE MR POND POINTS OUT YOU ARE FAR MORE LIKELY TO BECOME DISABLED BEFORE RETIREMENT THAN TO DIE BEFORE RETIREMENT DISABILITY INSURANCE IS MORE IMPORTANT THAN LIFE INSURANCE HE ARGUES AFTER ALL YOU'RE DEAD WHEN YOU COLLECT LIFE INSURANCE SO HOW CAN IT BE AS IMPORTANT MANY FOLKS WILL BE COVERED AGAINST DISABILITY BY THEIR EMPLOYER BUT THE COVERAGE IS OFTEN INADEQUATE MR POND ADVISES GETTING DISABILITY INSURANCE THAT WILL PROVIDE YOU WITH 60 TO 70 OF YOUR CURRENT INCOME UNTIL AGE 65 IF THE COST SEEMS PROHIBITIVE HE SUGGESTS BUYING A POLICY THAT HAS A SIXMONTH WAITING PERIOD BEFORE THE BENEFITS KICK IN ONLY THOSE IN THE WORK FORCE NEED DISABILITY INSURANCE BUT BOTH PEOPLE WORKING AND RETIREES SHOULD GET UMBRELLA LIABILITY INSURANCE IN CASE THEY GET SUED SAYS MR POND SOME LIABILITY INSURANCE WILL BE INCLUDED IN YOUR HOMEOWNERS AND AUTOMOBILE INSURANCE POLICIES BUT MR POND SAYS BEING SUED CAN BE SO DEVASTATINGLY EXPENSIVE THAT HE ADVOCATES GETTING AN UMBRELLA LIABILITY POLICY THAT WILL PROVIDE AT LEAST 1 MILLION OF ADDITIONAL COVERAGE MR POND SAYS YOU ONLY REALLY NEED LIFE INSURANCE IF SOMEBODY ELSE RELIES ON YOUR INCOME IF YOU'VE GOT TRUE DEPENDENTS AND THAT MEANS SNOTNOSED CHILDREN A MINIMUM AMOUNT OF LIFE INSURANCE WOULD BE THE EQUIVALENT OF FOUR OR FIVE YEARS' NET INCOME HE SAYS THAT WOULD GIVE THE FAMILY TIME TO GET BACK ON ITS FEET LIFE INSURANCE SHOULD ALSO BE BOUGHT BY SPOUSES WHO STAY AT HOME TO CARE FOR CHILDREN SAYS MR POND BECAUSE THEIR DEATH COULD FORCE THE SURVIVING SPOUSE TO INCUR HEFTY CHILDCARE EXPENSES BUT HE SAYS RETIREES GENERALLY DON'T NEED ANY LIFE INSURANCE UNLESS THEY ARE USING IT FOR ESTATEPLANNING PURPOSES MR POND ADVISES BUYING INSURANCE DIRECTLY FROM A LOWCOST LOWLOAD INSURANCE COMPANY SUCH AS AMERITAS LIFE INSURANCE CORP OF LINCOLN NEB OR USAA LIFE INSURANCE CO OF SAN ANTONIO HE SUGGESTS PURCHASING A MIX OF TERM AND CASHVALUE LIFE INSURANCE THOUGH OTHERS ADVOCATE STICKING WITH ONLY TERM INSURANCE WITH A TERM POLICY ALL YOU GET IS A DEATH BENEFIT WHICH IS PAYABLE IF YOU DIE WHILE THE POLICY IS IN EFFECT CASHVALUE IS MUCH MORE EXPENSIVE THAN TERM INSURANCE BECAUSE WITH A CASHVALUE POLICY PART OF YOUR PREMIUM BUYS THE DEATH BENEFIT AND PART GETS INVESTED ON YOUR BEHALF IF THE CLINTON HEALTH PLAN BECOMES LAW THE SITUATION FOR THOSE WITHOUT HEALTH INSURANCE WILL CHANGE RADICALLY BUT FOR NOW IF NEITHER YOU NOR YOUR SPOUSE CAN GET INSURANCE THROUGH YOUR EMPLOYER INVESTMENT ADVISERS SAY YOU SHOULD LOOK AT GETTING COVERAGE THROUGH BLUE CROSS/BLUE SHIELD A WELLESTABLISHED HEALTH MAINTENANCE ORGANIZATION OR ANY TRADE GROUP OR PROFESSIONAL ASSOCIATION TO WHICH YOU BELONG BUT DON'T RUSH OUT AND APPLY ON YOUR OWN IF YOU THINK YOU MIGHT GET REJECTED BECAUSE A REJECTION MAY HURT YOUR CHANCES OF GETTING COVERAGE ELSEWHERE SAYS JOHN CAMMACK A VICE PRESIDENT WITH T ROWE PRICE ASSOCIATES IF YOU THINK YOU'RE AN IMPAIRED RISK YOU SHOULD GO TO AN INSURANCE AGENT WHO SPECIALIZES IN THIS AREA SAYS MR CAMMACK WITHOUT REVEALING YOUR IDENTITY THE AGENT MAY BE ABLE TO TRACK DOWN COMPANIES WHERE YOU ARE LIKELY TO BE ACCEPTED BUYING YOUR OWN HEALTH INSURANCE CAN BE COSTLY SO SAN FRANCISCO INVESTMENT ADVISER ROBERT BINGHAM SUGGESTS OPTING FOR A POLICY WITH A 1000 DEDUCTIBLE PROVIDING YOU CAN AFFORD THE POTENTIALLY LARGE OUTOFPOCKET EXPENSE THOSE 65 AND OLDER ARE TYPICALLY ELIGIBLE FOR MEDICARE BUT THAT DOESN'T MEAN YOUR NEED FOR HEALTH INSURANCE DISAPPEARS MR BINGHAM SAYS THOSE COVERED BY MEDICARE SHOULD CONSIDER PURCHASING A MEDIGAP POLICY WHICH PROVIDES INSURANCE FOR SOME OF THE AREAS NOT COVERED BY MEDICARE INSURANCE NEEDS VARY FROM PERSON TO PERSON BUT KENNETH KLEGON A FINANCIAL PLANNER IN LANSING MICH SAYS EVERYBODY SHOULD HAVE THREE CRITICAL ESTATEPLANNING DOCUMENTS A WILL A DURABLE POWER OF ATTORNEY AND A MEDICAL POWER OF ATTORNEY THOSE SHOULD ALL BE PART OF YOUR SAFETY NET HE SAYS IF YOU BECOME INCAPACITATED A DURABLE POWER OF ATTORNEY DESIGNATES A GUARDIAN TO HANDLE YOUR ASSETS A MEDICAL POWER OF ATTORNEY SELECTS SOMEBODY TO MAKE MEDICAL DECISIONS A MEDICAL POWER OF ATTORNEY CAN ALSO HELP PREVENT LIFEPROLONGING MEDICAL PROCEDURES WHEN THERE IS NO CHANCE OF RECOVERY IF YOU HAVE CHILDREN YOUR WILL SHOULD NAME A GUARDIAN FOR THEM IN THE EVENT OF YOUR DEATH THERE'S ONE FINAL THING YOU SHOULD HAVE AND THAT'S AN ORGANIZED SET OF DOCUMENTS SAYS T ROWE PRICE'S MR CAMMACK HE SUGGESTS KEEPING ALL ESTATEPLANNING INVESTMENT AND INSURANCE PAPERS IN ONE PLACE TOGETHER WITH A LIST OF YOUR FINANCIAL AND LEGAL ADVISERS AND A SUMMARY LETTER EXPLAINING YOUR FINANCES SEE RELATED LETTER LETTERS TO THE EDITOR HOLES IN INSURANCE NET WSJ NOV 30 1993 9310220088 YY93 MM11 9311300093 931025 THE NEW SOCIALISM BY ROBERT J BARRO GIVEN THE CURRENT ATMOSPHERE IN WASHINGTON IT IS HARD TO REMEMBER HOW WELL GOVERNMENT POLICY AND THE ECONOMY WERE DOING JUST FIVE YEARS AGO AFTER EIGHT YEARS OF PRESIDENT REAGAN'S TILT TOWARD FREEMARKET POLICIES MORE THAN 16 MILLION JOBS HAD BEEN CREATED AND THE UNEMPLOYMENT RATE HAD FALLEN TO 53 THE INFLATION RATE HAD BEEN LOWERED TO 4 FROM 10 SHORTTERM INTEREST RATES HAD DECLINED TO 8 FROM 16 AND LONGTERM RATES TO 9 FROM 12 AND THE GROSS DOMESTIC PRODUCT HAD GROWN AT AN AVERAGE ANNUAL RATE OF 4 FROM THE END OF THE 1982 RECESSION THROUGH 1988 MOREOVER NONDEFENSE FEDERAL SPENDING HAD BEEN REDUCED A BIT AS A FRACTION OF GDP AND THE FEDERAL DEFICIT WAS ESSENTIALLY GONE IN THE RELEVANT SENSE THAT THE RATIO OF THE PUBLIC DEBT TO GDP WAS DECLINING APPARENTLY FREE MARKETS WORKED WELL IN THE US IN THE 1980S AND IN OTHER PLACES BEFORE AND SINCE SO WE DECIDED TO TRY SOMETHING ELSE AS WITH THE EARLIER MOVE TOWARD A DEFENSE BUILDUP AND LESS GOVERNMENT INTERVENTION IN THE ECONOMY WHICH BEGAN WITH PRESIDENT CARTER RATHER THAN PRESIDENT REAGAN THE RECENT SHIFT TO A LARGER FEDERAL GOVERNMENT STARTED WITH PRESIDENT BUSH RATHER THAN PRESIDENT CLINTON MR BUSH RAISED TAXES AND SPENDING INCREASED THE MINIMUM WAGE RATE AND UNEMPLOYMENT INSURANCE BENEFITS INTENSIFIED THE ENFORCEMENT OF REGULATIONS AND ENACTED AN ARRAY OF NEW INTRUSIONS IN THE FORM OF THE AMERICANS WITH DISABILITIES ACT THE CLEAN AIR ACT AND THE CIVIL RIGHTS ACT WITH MR CLINTON CAME MORE OF THE SAME INCLUDING FAMILY LEAVE HIGHER MARGINAL TAX RATES ON THE RICH A STEPPING UP OF ANTITRUST ENFORCEMENT AIMED AT SUCCESSFUL COMPANIES ATTACKS ON THE OBSCENE PROFITS OF PHARMACEUTICAL COMPANIES AND A SOONTOCOME RISE IN THE MINIMUM WAGE RATE THE GENERAL APPROACH IS CONTINUALLY TO ENACT INCREASES IN THE COST OF DOING BUSINESS AND THEN TO PROCLAIM THAT THESE HIGHER COSTS WILL HAVE NO ADVERSE IMPACT ON THE VOLUME OF BUSINESS FOR INSTANCE LABOR SECRETARY ROBERT REICH NOW SAYS CONFIDENTLY THAT A HIGHER MINIMUM WAGE RATE WILL NOT COST JOBS THESE BUSHLIKE INTERFERENCES WITH THE ECONOMY ARE DWARFED BY THE PROPOSALS FOR SOCIALIZED MEDICINE AN INCREASE IN THE SCOPE OF GOVERNMENT THAT WE HAVE NOT SEEN SINCE THE 1930S THE HEALTH CARE PLAN AS CURRENTLY PRESENTED IS A REMARKABLE DOCUMENT WRITTEN ENTIRELY FROM THE PERSPECTIVE OF A BENEVOLENT AND INGENIOUS SOCIAL PLANNER THE PROBLEM IS NOT SO MUCH THE PARTICULARS BUT RATHER THE PREMISE THAT THE GOVERNMENT COULD COME UP WITH ANY SCHEME THAT WOULD RUN THIS INDUSTRY IN A CENTRALIZED YET EFFICIENT MANNER EVEN WHEN THE PLAN APPEARS TO DISCUSS MARKETS AND TO MENTION PRICES AND COMPETITION THESE ARE MERELY INSTRUMENTS THAT THE PLANNER USES TO ATTAIN OUTCOMES THAT HAVE ALREADY BEEN DEEMED CORRECT AN ALTERNATIVE APPROACH WOULD START BY ASKING WHY MEDICAL CARE DIFFERS FROM OTHER GOODS AND HOW THESE DIFFERENCES RELATE TO THE DESIRABILITY OF MARKET FORCES AND OF THE GOVERNMENT'S EXISTING POLICIES INCLUDING THE TAX DEDUCTIBILITY OF EMPLOYERPROVIDED HEALTH BENEFITS HEALTH CARE IS NOT MORE IMPORTANT THAN MANY OTHER GOODS INCLUDING FOOD AND HOUSING AND IS NOT UNUSUALLY DIFFICULT FOR CONSUMERS TO EVALUATE CAR AND VCR REPAIR ARE MORE MYSTERIOUS THE KEY MATTER SEEMS TO BE THE UNWILLINGNESS TO RELATE A SICK PERSON'S ALLOTMENT OF MEDICAL SERVICES TO THE WILLINGNESS AND ABILITY TO PAY AND TO THE PERSON'S PRIOR DECISIONS ABOUT HOW MUCH TO SPEND ON HEALTH INSURANCE GIVEN A CHOICE MANY PEOPLE WOULD VOLUNTARILY SHIFT INCOME AWAY FROM COMPLETE HEALTH INSURANCE AND TOWARD OTHER GOODS YET MANY POLICY MAKERS WANT TO DENY PEOPLE THIS OPPORTUNITY BY INSISTING THAT ONCE PEOPLE BECOME SICK OR INJURED OR HAVE SIAMESE TWIN BABIES OR DESIRE HEART TRANSPLANTS OR KIDNEY DIALYSIS THEY MUST BE PROVIDED WITH FULL HEALTH COVERAGE SINCE THIS OUTLOOK SEEMS TO BE PERVASIVE IT THEN ALSO BECOMES REASONABLE TO REQUIRE THAT PEOPLE PAY IN ADVANCE FOR EXAMPLE IN THE FORM OF SEN PHIL GRAMM'S PROPOSAL FOR MEDICAL SAVINGS ACCOUNTS FOR THE CATASTROPHIC INSURANCE COVERAGE THAT SOCIETY INSISTS ON PROVIDING THE AMOUNT OF FREEMARKET CHOICE COULD THEN BE MAXIMIZED SUBJECT TO THIS CONSTRAINT CRITICS OF THE PRESENT HEALTH PLAN MAKE A MISTAKE WHEN THEY FALL INTO THE GAME OF CHOOSING AMONG SOCIALISTIC ALTERNATIVES DO YOU WANT ONE FORM OF BUREAUCRATIC APPARATUS OR ANOTHER ONE FORM OF PRICE CONTROL AND QUANTITY RATIONING OR ANOTHER WHEN THE SERIOUS CHOICE IS BETWEEN GOVERNMENT DICTATES AND FREEMARKET SOLUTIONS AS AN ANALOGY SUPPOSE THAT THE GOVERNMENT UNDERTOOK THE TASK OF PRICING THE VARIOUS EQUITIES TRADED ON THE NEW YORK STOCK EXCHANGE THE CLEVER PLANNER PERHAPS HILLARY CLINTON OR IRA MAGAZINER WOULD DETERMINE THAT THE JUST PRICE FOR IBM WAS 65 A SHARE A CRITIC OF THIS SELECTION IS IN SOME TROUBLE BECAUSE THE PLANNER CAN SAY WELL IF YOU DON'T LIKE 65 THEN WHAT PRICE WOULD YOU SET A TOUGH QUESTION IF THE PRIVATE MARKET NO LONGER EXISTS AND THE MARKET PRICE CANNOT BE LOOKED UP IN THIS NEWSPAPER IN MOST CASES WE DO NOT KNOW BEFOREHAND WHAT THE ANSWER IS SUPPOSED TO BE AND A PRIMARY FUNCTION OF PRIVATE MARKETS IS TO PROVIDE SUCH ANSWERS THE CLINTON HEALTH PLAN IS PRIMARILY THE BRAIN CHILD OF MR MAGAZINER WHO AS AN UNDERGRADUATE IN 1970 WAS THE ARCHITECT OF A SIMILARLY ARROGANT PLAN TO REVOLUTIONIZE THE CURRICULUM OF BROWN UNIVERSITY HE FELT THAT GRADES AND COURSE REQUIREMENTS WERE STIFLING AND THAT THE TRADITIONAL STERILE OFFERINGS IN MATHEMATICS LITERATURE PHYSICAL AND SOCIAL SCIENCES AND SO ON SHOULD BE REPLACED BY UPLIFTING MODESOFTHOUGHT COURSE THAT INCLUDED LARGE DOSES OF PHILOSOPHY AND INTERDISCIPLINARY FLUFF BROWN AS A PROGRESSIVE INSTITUTION CAUGHT UP IN THE HYSTERIA OF THE CAMBODIAN INVASION ACTUALLY IMPLEMENTED THE PLAN ALTHOUGH THE NEW CURRICULUM WAS REJECTED IN THE MARKETPLACE AND EVENTUALLY DIED OUT THE LACK OF DISTRIBUTION REQUIREMENTS AND THE NONGRADING OPTIONS REMAIN AS A LEGACY OF THE REFORM IN ANY EVENT MR MAGAZINER UNDETERRED BY HIS FAILURE AT BROWN OR BY SUBSEQUENT EMBARRASSMENTS IN HIS ADVOCACY OF AN INDUSTRIAL POLICY FOR RHODE ISLAND AND OF GENEROUS FUNDING FOR COLDFUSION RESEARCH HAS NOW GONE ON TO OFFER HIS DARING VISION OF A NATIONAL HEALTH PLAN PERHAPS HE WILL FOLLOW UP THE COMING FAILURE OF THIS PLAN WITH AN EVEN MORE ADVENTUROUS FEDERAL PROGRAM TO SOLVE THE NATION'S EDUCATION PROBLEMS SINCE I REGARD MR CLINTON'S POLICIES AS UNFORTUNATE IT IS ONLY FAIR THAT I LOOK ALSO AT ECONOMIC OUTCOMES MEASURED FOR EXAMPLE BY A MISERY INDEX THAT CONSIDERS THE CHANGES OF INFLATION UNEMPLOYMENT LONGTERM INTEREST RATES AN INDICATOR OF THE LONGTERM OUTLOOK FOR INFLATION AND REAL ECONOMIC GROWTH FROM THIS PERSPECTIVE MR CLINTON'S PERFORMANCE IS SIMILAR THUS FAR TO MR BUSH'S GOOD RESULTS ON INFLATION AND LONGTERM INTEREST RATES COMBINED WITH LITTLE GROWTH MR CLINTON ACTUALLY DOES BETTER OVERALL BECAUSE OF THIS YEAR'S DROP IN THE UNEMPLOYMENT RATE FROM 73 TO 67 WE SHALL HAVE TO CONSULT WITH THE LABOR SECRETARY TO LEARN WHETHER THE ROUGHLY ONE MILLION NEW JOBS ARE STILL DEEMED TO BE MOSTLY TEMPORARY AND BASICALLY CRUMMY THUS THE MISERYINDEX SCORE IS NOT BAD AND MR CLINTON OWES THIS RESULT TO A MONETARY POLICY THAT HAS KEPT DOWN INFLATION AND INTEREST RATES OVER THE PAST SEVERAL YEARS THE MAINTENANCE OF LOW INFLATION AND THE DECLINING EXPECTATIONS OF FUTURE INFLATION DERIVE FROM THE COMMITMENT OF THE FEDERAL RESERVE AND ITS CHAIRMAN ALAN GREENSPAN TO A POLICY OF REASONABLE PRICE STABILITY MOREOVER MR CLINTON HAS BEEN VERY CLEVER TO SUPPORT MR GREENSPAN AND TO AVOID ATTACKS ON THE FED'S INDEPENDENCE AND HENCE ITS CREDIBILITY MR CLINTON PERHAPS LEARNED FROM THE EXPERIENCE OF JIMMY CARTER FOR WHOM A DISASTROUS MONETARY POLICY WAS THE MAIN SOURCE OF TROUBLE IN THE DOMESTIC AREA ALTHOUGH THE COMMITMENT OF MONETARY POLICY TO PRICE STABILITY HELPS TO EXPLAIN THE LOW LEVELS OF INFLATION AND SHORTTERM INTEREST RATES THE MYSTERY IS WHY THIS COMMITMENT EXTENDS BEYOND THE TENURE OF THE CURRENT FED CHAIRMAN AND HENCE WHY THE BOND MARKETS EXPECT LOW INFLATION TO CONTINUE OVER THE NEXT 10 TO 30 YEARS I THINK IN FACT THAT THERE IS NO REASONABLE BASIS FOR THIS BELIEF AND THAT THE BOND MARKET WILL FALL PRECIPITOUSLY WHEN EXPECTATIONS OF FUTURE INFLATION ARE RAISED FOR MR GREENSPAN THE ATTRACTIONS OF THE FED CHAIRMANSHIP MUST BE DIMINISHING ALTHOUGH THE NATION BENEFITS FROM MONETARY STABILITY THIS SAME STABILITY AND THE CONSEQUENT GOOD PERFORMANCE OF THE FINANCIAL MARKETS MAKES IT EASIER FOR THE ADMINISTRATION TO ENACT AN ARRAY OF UNDESIRABLE INTERVENTIONS INTO THE ECONOMY IF THE BOND AND STOCK MARKETS WERE LESS BUOYANT THEN THE GOVERNMENT WOULD BE MORE RELUCTANT TO RAISE TAXES OR MINIMUM WAGE RATES OR TO IMPLEMENT A REMARKABLY EXPENSIVE HEALTH CARE PLAN MR GREENSPAN HAS TO ASK WHETHER AS A GOOD LIBERTARIAN HE CAN REMAIN AS PART OF AN ADMINISTRATION TEAM THAT IS BASICALLY PROMOTING SOCIALISM THE LONGER HE STAYS IN OFFICE THE MORE HE RESEMBLES COL NICHOLSON PLAYED BY ALEC GUINNESS IN THE BRIDGE ON THE RIVER KWAI WHO FORGOT HIS UNDERLYING MISSION AND BUILT A MARVELOUS BRIDGE FOR HIS JAPANESE JAILERS THE COLONEL FINALLY WOKE UP AND SAID WHAT HAVE I DONE JUST BEFORE FALLING ON THE DETONATOR AND BLOWING UP THE BRIDGE IT WOULD BE BETTER IF MR GREENSPAN LEFT THE GOVERNMENT A LITTLE FURTHER IN ADVANCE OF THE EXPLOSION MR BARRO A WALL STREET JOURNAL CONTRIBUTING EDITOR IS A PROFESSOR OF ECONOMICS AT HARVARD SEE RELATED LETTER LETTERS TO THE EDITOR BROWN'S CURRICULUM A ROUSING SUCCESS WSJ NOV 30 1993 9310250084 YY93 MM11 9311290136 931129 GLOBAL VIEW BELGIUM SHATTERS THE IDEA THAT DEBT HATH NO STING BY GEORGE MELLOAN BRUSSELS IT'S BEEN A QUIET WEEK HERE IN THE CAPITAL OF EUROPE THAT'S BECAUSE SO FEW PEOPLE WERE VISITING THEIR WORKPLACES ON FRIDAY MOST OF BELGIUM WAS SHUT DOWN BY A GENERAL STRIKE THE LATEST AND MOST PARALYZING OF A RECENT SERIES OF WORK STOPPAGES NONEUROPEANS SHOULD UNDERSTAND THAT STRIKES HERE USUALLY ARE DIRECTED AT GOVERNMENTS NOT PRIVATE CORPORATIONS GENERAL STRIKES ARE AN OLD EUROPEAN CUSTOM THAT IS ENJOYING A REVIVAL IN BELGIUM GOVERNMENT IS THE TARGET BECAUSE THE UNIONS KNOW THAT THE GOVERNMENT EXERCISES CONTROL OVER THE THINGS THAT MATTER TO WORKERS BELGIUM'S WELFARE STATE REPERTOIRE INCLUDES CHILD ALLOWANCES HEALTH INSURANCE PENSIONS MEAL TICKETS MANDATED VACATIONS AND MANDATED COSTOFLIVING INCREASES AMONG OTHER ITEMS JUST ABOUT EVERY HUMAN ACTIVITY IS COVERED BY SOME KIND OF SUBSIDY OR MANDATED BENEFIT THAT HELPS EXPLAIN WHY BELGIUM IS IN FINANCIAL DISTRESS A BELEAGUERED GOVERNMENT IS TRYING TO FIGURE OUT HOW TO PAY ALL THE BILLS POLITICIANS EVERYWHERE AND PARTICULARLY IN THE US MIGHT WANT TO GIVE SOME THOUGHT TO ITS PLIGHT AS THEY CONTEMPLATE THEIR FAVORITE WAY OF WINNING POPULARITY HANDING OUT MORE FREEBIES AND CHARGING IT ALL TO THE FUTURE IT IS EASY TO LEGISLATE THESE THINGS BUT VERY HARD TO TAKE THEM AWAY AGAIN WHEN THE ECONOMY HITS THE SKIDS ALL THAT EASILY WON POPULARITY CAN VANISH OVERNIGHT AS BELGIUM'S SOCIALISTS ARE LEARNING TO THEIR DISMAY ALL OF EUROPE'S WELFARE STATES ARE IN FINANCIAL TROUBLE BUT BELGIUM IS ONE OF THE MORE DRAMATIC CASES THE GOVERNMENT AND THE WORKERS ARE AT LOGGERHEADS BECAUSE OF A GOVERNMENT PLAN MADE PUBLIC 12 DAYS AGO TO CUT THE COST OF SOCIAL PROGRAMS BY 1 OF GROSS DOMESTIC PRODUCT GDP OVER THE NEXT THREE YEARS STARTING WITH A HALF POINT CUT NEXT YEAR IT ALSO HAS PROPOSED TAX INCREASES A REAL WAGE FREEZE IN 199596 AND REDUCED COSTOFLIVING ADJUSTMENTS PRIME MINISTER JEANLUC DEHAENE WANTED A SOCIAL PACT BETWEEN EMPLOYERS AND UNIONS TO SUPPORT HIS AUSTERITY MOVES BUT AS THE GENERAL STRIKE SO GENTLY HINTS THE UNIONS ARE HAVING NONE OF THAT UNION LEADERS RAISING THE OLD CLENCHED FIST SALUTE AND DUBBING STRIKE DAY RED FRIDAY ARE TRYING TO SUMMON UP THE GHOSTS OF YESTERYEAR WHEN MANY WONDERED IF ALL OF EUROPE WOULD GO COMMUNIST THAT DANGER IS REMOTE TODAY BUT THERE CAN BE NO DOUBT THAT STRIKES WILL INFLICT FURTHER DAMAGE ON EUROPEAN PRODUCTIVITY WHICH ALREADY IS INFERIOR TO THAT OF ITS MAIN COMPETITORS PERIODIC SHUTDOWNS OF A NATIONAL ECONOMY DON'T AID ECONOMIC RECOVERY IT HARDLY NEEDS MENTIONING THAT THE BELGIUM GOVERNMENT HAD TO BE DESPERATE TO MUSTER THE COURAGE TO TAKE A KNIFE TO THE WELFARE STATE IT IS AND IN THE REASONS WHY THERE IS YET ANOTHER LESSON FOR BILL CLINTON AND THE AMERICAN CONGRESS IT IS DESPERATE BECAUSE ITS NATIONAL DEBT HAS FINALLY GROWN SO LARGE THAT IT IS DEVOURING THE COUNTRY SUCH A THING CAN HAPPEN BELIEVE IT OR NOT ACCORDING TO AN ESTIMATE BY SALOMON BROTHERS INTERNATIONAL LTD OF LONDON EVEN MR DEHAENE'S AUSTERITY MEASURES WILL DO LITTLE IF ANYTHING TO CUT THE GOVERNMENT'S ANNUAL BUDGET DEFICIT WHICH IS NOW ABOUT 8 OF GDP THUS SAYS SALOMON BELGIUM'S NATIONAL DEBT WILL CONTINUE TO RISE NEXT YEAR TO 147 OF GDP AND WILL ONLY BE REDUCED IN FORTHCOMING YEARS IF GDP GROWTH RETURNS TO POTENTIAL AND INTEREST RATES ARE REDUCED FURTHER THAT NUMBER 147 OF GDP DOESN'T HAVE MUCH MEANING UNTIL YOU LOOK AT WHAT IT DOES TO THE BELGIAN GOVERNMENT'S BUDGET EVEN AT THE CURRENT LEVEL OF DEBT PAYING INTEREST ON THE NATIONAL DEBT IS COSTING THE GOVERNMENT ABOUT 40 OF ITS BUDGET THE COST OF DEBT SERVICE IS STEADILY CROWDING OUT ALL THE OTHER THINGS THE GOVERNMENT TRIES TO DO INCLUDING SUCH USEFUL THINGS AS MAINTAINING ROADS WITH TAXES ALREADY AT A CONFISCATORY LEVEL TO MEET WELFARE STATE NEEDS TAX INCREASES BECOME COUNTERPRODUCTIVE BOOSTS SIMPLY CREATE A GREATER INCENTIVE FOR EVASION WHICH BY MOST ACCOUNTS IS WIDESPREAD MOREOVER THE BELGIUM GOVERNMENT HAS BEEN INDULGING IN SOMETHING THAT TREASURIES INCLUDING THE ONE IN WASHINGTON ALWAYS ARE TEMPTED TO DO WHEN FACED WITH A HEAVY FINANCING BURDEN THEY TEND TO REDUCE LONGTERM FINANCING AND GO FOR THE LOWER INTEREST COSTS OF SHORTTERM BORROWING BELGIUM HAS BEEN DOING THIS AND AS A RESULT A HUGE FLOCK OF DEBT MATURITY CHICKENS WILL SUDDENLY COME HOME TO ROOST NEXT YEAR IT IS FACED WITH ENORMOUS REFINANCING NEEDS THERE WILL BE A FURTHER TEMPTATION AT THAT POINT TO CUT CENTRAL BANK RATES BUT THAT COULD SEND THE BELGIAN FRANC INTO A NOSEDIVE RISKING AN OUTBURST OF INFLATION OF COURSE ONE GOOD WAY TO GET RID OF DEBT IS TO INFLATE SOME OF IT AWAY AND THAT IS POSSIBLE IN BELGIUM BECAUSE SO MUCH OF ITS DEBT IS OWNED BY BELGIAN NATIONALS BUT IT IS UNLIKELY THAT INFLATION WILL MAKE THE VOTERS OR WORKERS ANY HAPPIER THAN THE PROPOSED SOCIAL SPENDING CUTS ARE DOING IT IS IN FACT THE CRUELEST TAX OF ALL IN ADDITION TO THE ECONOMIC STRESS INVOLVED THERE IS A SOCIAL AND POLITICAL DIMENSION TO ALL OF THIS SOCIAL SPENDING ADVOCATES ARGUE THAT IT IS A LEVELER REDISTRIBUTING WEALTH AND INCOME IN SUCH A WAY THAT NO ONE IS EITHER TOO RICH OR TOO POOR OR AS BILL CLINTON WOULD SAY THE RICH ARE MADE TO PAY THEIR FAIR SHARE BUT ASIDE FROM THE FACT THAT IT USUALLY IS THE MIDDLE CLASS THAT ENDS UP PAYING THE LION'S SHARE THERE IS ANOTHER POINT TO BE MADE WHEN THE COSTS OF THE WELFARE STATE ARE MET THROUGH DEFICIT FINANCING THE INCOME TRANSFER PROCESS GRADUALLY BEGINS TO REVERSE ITSELF WHEN BELGIUM PAYS OUT 40 OF ITS REVENUES FOR DEBT SERVICE IT IS NOT TRANSFERRING MONEY FROM THE RICH TO THE POOR BUT DOING RATHER THE OPPOSITE IT IS TAXING WAGE EARNERS HEAVILY IN ORDER TO MEET PAYMENTS TO MONEY LENDERS WHO ON THE WHOLE ARE LIKELY TO BE QUITE A LOT RICHER THAN THE POOR WORKING STIFFS WHO PAY THE TAXES IN PURELY ECONOMIC TERMS THIS IS SOMETHING OF A NECESSITY BECAUSE THE DEBT SERVICE PAYMENTS KEEP THE CAPITAL MARKETS LIQUID AND ENABLES THE GOVERNMENT TO CONTINUE REFINANCING SO THAT IT DOESN'T GO BANKRUPT BUT AS SOME EUROPEANS ARE BEGINNING TO GUESS PRESENTING THE WELFARE STATE AS A FREEBIE FOR THE WORKING STIFF DOES VIOLENCE TO THE PRINCIPLE OF TRUTH IN ADVERTISING IT'S BEEN A QUIET WEEK IN BELGIUM BECAUSE SO MANY OF THOSE WORKING STIFFS ARE ON STRIKE FEELING THAT THEY ARE SOMEHOW BEING CHEATED AS A HARDPRESSED GOVERNMENT BEGINS TO TAKE BACK ITS PROMISES IN A WAY THEY ARE RIGHT BUT MAYBE THEY SHOULD TAKE OUT THEIR ANGER INSTEAD ON THOSE PEOPLE WHO PROMISED THEM A FREE LUNCH THAT WOULD INCLUDE A GREAT MANY OF THOSE CLENCHEDFIST UNION LEADERS 9311290135 931104 WHY SCHOOL CHOICE LOST BY JOHN J MILLER THE DEFEAT OF PROPOSITION 174 IN CALIFORNIA TUESDAY PROVES ONCE AGAIN THAT SCHOOL CHOICE IS A GOOD IDEA WHOSE TIME HASN'T COME THE BILL WOULD HAVE AWARDED SCHOOLCHILDREN A 2600 VOUCHER FOR USE AT VIRTUALLY ANY PRIVATE SCHOOL IN THE STATE BUT VOTERS REJECTED IT BY A DECISIVE 21 MARGIN SCHOOL CHOICE BOOSTERS HAVE ALREADY STARTED RATTLING OFF DOZENS OF REASONS FOR THE FAILURE THEY WERE WILDLY OUTSPENT BY POWERFUL SPECIAL INTERESTS ACTIVIST TEACHERS TURNED THEIR CLASSROOMS INTO ANTICHOICE WORKSHOPS THE MEDIA TARRED SUPPORTERS AS RELIGIOUS FANATICS ETC ALL OF THESE CLAIMS ARE TO SOME EXTENT TRUE BUT EACH MISSES THE BIG PICTURE SCHOOL CHOICE FAILED IN CALIFORNIA BECAUSE REPUBLICAN VOTERS DIDN'T WANT IT THIS MAY SEEM A BIT ODD SINCE SCHOOL CHOICE HAS BEEN A CORE GOP ISSUE FOR MANY YEARS PRESIDENT BUSH STUMPED FOR IT IN LAST YEAR'S CAMPAIGN AND EMPOWER AMERICA A STARSTUDDED REPUBLICAN OUTFIT IN WASHINGTON MADE IT A TOP PRIORITY THIS FALL CALIFORNIA'S REPUBLICAN PARTY ALSO ENDORSED PROP 174 CONVERSELY DEMOCRATIC POLITICIANS WHO ALMOST UNIVERSALLY OPPOSE VOUCHERS ONCE AGAIN MARCHED IN LOCKSTEP WITH TEACHER UNIONS NONE OF THIS MATTERED TO CALIFORNIA REPUBLICANS MOST SUBURBANITES THE FOLKS WHO MAKE UP THE GOP'S RANKANDFILE ARE HAPPY WITH THEIR KIDS' SCHOOL SYSTEMS THEIR CHILDREN ALREADY EARN GOOD GRADES SCORE WELL ON TESTS AND GAIN ADMISSION INTO REPUTABLE COLLEGES AND UNIVERSITIES MOREOVER SUBURBAN AFFLUENCE GRANTS A MEASURE OF FREEDOM IN CHOOSING WHERE TO LIVE AND THUS PROVIDES AT LEAST SOME CONTROL OVER SCHOOL SELECTION IT'S NOT THAT SUBURBANITES REFUSE TO ADMIT THE COUNTRY'S DEEP EDUCATION CRISIS THEY JUST DON'T BELIEVE THE PROBLEM AFFECTS THEM PERSONALLY A RECENT POLL BY PHI DELTA KAPPA AN EDUCATIONAL ORGANIZATION IN BLOOMINGTON IND RECONFIRMED THIS LONGSTANDING TREND IN IT ONLY 19 OF SUBURBIA AWARDED GRADES OF A OR B TO THE NATION'S PUBLIC SCHOOLS BUT 50 GAVE AN A OR B TO THE PUBLIC SCHOOLS IN THEIR COMMUNITIES THE LAST THING THESE SATISFIED PARENTS WANT IS AN EDUCATION REVOLUTION ALTHOUGH SOME SURVEYS HAVE SHOWN STRONG SUPPORT FOR PRIVATE SCHOOL CHOICEUP TO 70 IN CERTAIN CASES THEY ALSO REVEAL DISTINCT CLASS DIVISIONS VOUCHERS BECOME LESS POPULAR AS ONE MOVES UP THE SOCIOECONOMIC LADDER A 1992 SURVEY BY THE LOS ANGELESBASED REASON FOUNDATION SHOWED THAT AMONG HOUSEHOLDS EARNING MORE THAN 60000 A YEAR ONLY 35 SUPPORTED THE CONCEPT OF PRIVATE SCHOOL CHOICE EVEN FEWER ARE LIKELY TO SUPPORT A PARTICULAR BILL THE ANTICHOICE CREW IN CALIFORNIA EXPLOITED THESE DIVISIONS THEY SET UP A STRATEGIC APPARATUS GEARED TOWARD GOP VOTERS CONFIDENT THAT THEIR MORE LIBERAL BACKERS WOULD FALL IN LINE ANYWAY REPUBLICAN TACTICIAN RICK MANTER SERVED AS CAMPAIGN MANAGER FOR THE NO ON 174 EFFORT LAST YEAR HE LED REPUBLICAN BRUCE HERSCHENSON'S ENERGETIC BUT LOSING SENATE BID THE REPUBLICAN CONSULTING FIRM NELSON & LUCAS ALSO COLLABORATED WITH THE ANTICHOICERS TOGETHER THEY CRAFTED A MESSAGE TAILORED TO THE SUBURBAN SKEPTIC THEY CONJURED UP FINANCIAL WORRIES OVER WHAT PROP 174 WOULD COST THE CASHSTRAPPED STATE SAID IT WOULD CREATE A NEW BUREAUCRACY WITH NO ACCOUNTABILITY AND SHOWCASED THE KIND OF EXTREMISM THE LAW MIGHT HAVE PERMITTED ACCORDING TO SOME REPORTS A WITCHES' COVEN HOPED TO FOUND A SCHOOL FOR VOUCHER STUDENTS REPUBLICAN GOV PETE WILSON NO FRIEND OF CALIFORNIA'S EDUCATION ESTABLISHMENT EVENTUALLY CAME OUT AGAINST PROP 174 CITING ITS POSSIBLY NEGATIVE IMPACT ON THE STATE BUDGET CHAMBERS OF COMMERCE IN LOS ANGELES SAN DIEGO AND SAN JOSE PUBLICLY OPPOSED PROP 174 AS WELL EVEN RONALD REAGAN REFUSED TO COME OUT FOR OR AGAINST THE INITIATIVE DESPITE HEAVY LOBBYING FROM THE PROVOUCHER CAMP GIVEN THESE FACTORS IT'S NO WONDER CALIFORNIA REPUBLICANS REFUSED TO PUSH SCHOOL CHOICE OVER THE TOP THE CALIFORNIA DEFEAT MARKS STRIKE THREE FOR SCHOOL CHOICE VOTER INITIATIVES STATEWIDE BALLOTS IN OREGON AND COLORADO SAID NO TO CHOICE BY WIDE MARGINS IN 1990 AND 1992 RESPECTIVELY IN THE WEEKS LEADING UP TO THE CALIFORNIA VOTE MANY CHOICE ADVOCATES ACROSS THE COUNTRY ADMITTED IN PRIVATE THAT PROP 174 WOULD FAIL THE GOAL THEY SAID WAS TO REACH THE 40 APPROVAL MARK A BIG IMPROVEMENT OVER THE OREGON AND COLORADO EFFORTS AND A HOPEFUL SIGN FOR THE FUTURE BUT THEY FAILED SCHOOL CHOICE ACTUALLY HAS A NARROW AND FRAGILE CONSTITUENCY CONSERVATIVE IDEOLOGUES THE URBAN POOR AND PARENTS WITH CHILDREN ALREADY ENROLLED IN PRIVATE SCHOOL THESE GROUPS WILL CONTINUE TO PUT POINTS ON THE BOARD EVERY TIME SCHOOL CHOICE COMES UP FOR A VOTE BUT THEY HARDLY REPRESENT A WINNING COALITION SCHOOL CHOICERS CLEARLY HAVE TO LOBBY THE SUBURBS WHERE THEIR LACK OF SUPPORT CURRENTLY DOOMS THEM TO DO THIS THEY SHOULD STOP LECTURING THE SUBURBS ABOUT LOUSY SCHOOLS FOR STARTERS THE SUBURBANITES AREN'T LIKELY TO BELIEVE IT MORE IMPORTANT THEY VIEW THE CHARGE AS DEFAMATION SINCE THEY OFTEN TAKE AN ACTIVE ROLE IN THEIR CHILDREN'S EDUCATION ARGUING THAT THEIR SCHOOLS ARE BAD IS TANTAMOUNT TO CALLING THEM CRUMMY PARENTS IT'S A SLAP IN THE FACE AND IT WON'T EVER WIN VOTES INSTEAD SCHOOL CHOICERS WILL HAVE TO MAKE POCKETBOOK APPEALS SUCCESS IN THE SUBURBS WILL REQUIRE EMPHASIS ON THE FINANCIAL SAVINGS THAT A GOOD SCHOOL CHOICE PLAN WILL DELIVER IN CALIFORNIA PROP 174 SUFFERED FROM A NUMBER OF CREDIBLE STUDIES THAT CAST ITS FINANCIAL MERITS INTO DOUBT NEXT TIME A MORE AGGRESSIVE ALLIANCE WITH BUSINESS GROUPS TAXPAYER ORGANIZATIONS AND PROFESSIONAL ECONOMISTS FROM CRAFTING THE LAW TO GETTING OUT THE VOTE MIGHT HELP THE FIRST SUCCESSFUL SCHOOL CHOICE REFERENDUM WILL ALSO RALLY YOUNG PEOPLE ORGANIZERS IN OREGON DETECTED A GENERATION GAP AMONG THEIR SUPPORTERS TWENTYSOMETHINGS ARE THE PEOPLE WHO HAVE JUST SEEN PUBLIC SCHOOLS FROM THE INSIDE THEY KNOW THERE'S A PROBLEM SAID STEVE BUCKSTEIN A LEADER OF THE STATE'S CHOICE MOVEMENT AND PRESIDENT OF THE CASCADE INSTITUTE IN PORTLAND PERHAPS THE DAZED AND CONFUSED MTV GENERATION IS READY TO TEACH ITS ELDERS A LESSON IN EDUCATION REFORM GRASSROOTS ORGANIZERS MIGHT ULTIMATELY WANT TO MOVE AWAY FROM POPULAR REFERENDUMS WHICH ARE NOT AN OPTION IN EVERY STATE ANYWAY SCHOOL CHOICE ACTUALLY SEEMS TO FARE SOMEWHAT BETTER IN STATE LEGISLATURES THE COMMONWEALTH GOVERNMENT IN PUERTO RICO RECENTLY APPROVED A SCHOOL CHOICE PLAN WORTH UP TO 10 MILLION AN AMBITIOUS PENNSYLVANIA BILL LOST A CLOSE VOTE IN 1991 BUT A REVISED VERSION COULD SQUEAK THROUGH NEXT YEAR THE STATE LEGISLATURE IN TEXAS REJECTED A CHOICE MEASURE IN THE SPRING BUT IT MIGHT PROVE MORE RECEPTIVE IF THE PROVOUCHER REPUBLICAN GEORGE W BUSH DEFEATS INCUMBENT DEMOCRATIC GOV ANN RICHARDS IN NEXT YEAR'S ELECTION LOCAL MOVEMENTS ARE ALSO AN OPTION POLLY WILLIAMS'S MILWAUKEE PLAN IS AN OBVIOUS MODEL JERSEY CITY MAYOR BRET SCHUNDLER MIGHT IMPROVE UPON IT SOON THE FINANCIERS OF THE CHOICE MOVEMENT MIGHT EVEN WANT TO LOOK AT SETTING UP SPECIAL FOUNDATIONS PRIVATE GROUPS IN ATLANTA INDIANAPOLIS SAN ANTONIO AND SEVERAL OTHER CITIES ARE NOW IN THE BUSINESS OF AWARDING SCHOLARSHIPS TO CHILDREN FOR A PRIVATE SCHOOL EDUCATION IMAGINE WHAT THE 25 MILLION SPENT BY YES ON 174 COULD HAVE MEANT TO A SIMILAR ORGANIZATION IN SAY SOUTH CENTRAL LOS ANGELES OR OAKLAND AT THE VERY LEAST THE CHOICE MOVEMENT SHOULD BORROW FROM THESE GROUPS' VOCABULARY SCHOLARSHIP SOUNDS SO MUCH MORE APPEALING THAN VOUCHER THE PRIVATE SCHOOL CHOICE MOVEMENT IS AT A CROSSROADS SUPPORTERS HAVE SUCCESSFULLY TURNED CHOICE INTO A NATIONAL ISSUE BUT THEIR EFFORTS HAVE YIELDED ONLY A STRING OF HIGHPROFILE DEFEATS AND JUST A HANDFUL OF SMALL VICTORIES THEY MUST NOW GAIN SOME GROUND EVEN IF IT COMES IN THE STATEHOUSE OR CITY HALL RATHER THAN AT THE BALLOT BOX WITHOUT A CHANGE OF TACTICS SCHOOL CHOICE WILL BE A PERMANENT LOSER MR MILLER IS ASSOCIATE DIRECTOR OF THE MANHATTAN INSTITUTE'S CENTER FOR THE NEW AMERICAN COMMUNITY IN WASHINGTON SEE RELATED LETTERS LETTERS TO THE EDITOR BIG UNKNOWNS DEFEATED SCHOOL CHOICE WSJ NOV 29 1993 9311040116 YY93 MM11 9311290134 931129 MARKETING & MEDIA PARAMOUNT AND CHRISCRAFT SIGN UP RIVER CITY IN RACE TO START TV NETWORK BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC AND CHRISCRAFT INDUSTRIES INC WON A KEY ALLIANCE IN THE RACE TO LAUNCH A FIFTH BROADCAST NETWORK ADDING TELEVISION STATION GROUP RIVER CITY BROADCASTING TO THEIR AFFILIATE LINEUP THE PARAMOUNT NETWORK WHICH IS COOWNED BY PARAMOUNT AND CHRISCRAFT IS SET TO BE LAUNCHED IN JANUARY 1995 RIVAL WARNER BROS A TIME WARNER INC UNIT IS SIMULTANEOUSLY TRYING TO LAUNCH ITS OWN FIFTH NETWORK WHICH IT PLANS TO LAUNCH IN THE FALL OF 1994 BOTH HAVE BEEN COMPETING TO LINE UP INDEPENDENT STATIONS AS AFFILIATES AND WARNER HAD BEEN IN TALKS WITH RIVER CITY A NEW FIFTH NETWORK NEEDS TO REACH ABOUT 80 OF THE NATION TO BE ATTRACTIVE TO ADVERTISERS THERE ARE NOT ENOUGH NONNETWORKAFFILIATED STATIONS AVAILABLE TO ALIGN WITH BOTH NEW NETWORKS SO MANY ANALYSTS AGREE ONLY ONE NETWORK WILL REACH ITS GOAL USING MOSTLY LOCAL STATIONS WARNER'S WB NETWORK ALREADY HAS SIGNED UP TRIBUNE CO'S SIX INDEPENDENT STATIONS AND OTHERS REACHING 42 OF THE COUNTRY WARNER IS NOW NEGOTIATING TO SIGN UP TRIBUNE'S CHICAGO WGN SUPERSTATION WHICH WAS NOT PART OF ITS ORIGINAL AGREEMENT WITH TRIBUNE SUPERSTATIONS ARE LOCAL STATIONS THAT ARE BEAMED BY SATELLITE TO CABLE SYSTEMS NATIONWIDE IF WGN SIGNS ON THE WB NETWORK WOULD HAVE ACCESS TO MORE THAN 70 OF THE COUNTRY RIVER CITY A ST LOUISBASED BROADCASTER IS OWNED BY A GROUP THAT INCLUDES INVESTMENT CONCERN BOSTON VENTURES GROUP THE AFFILIATION OF RIVER CITY'S TWO INDEPENDENT STATIONS WTTV IN INDIANAPOLIS AND KABB IN SAN ANTONIO ALONG WITH WJZY IN CHARLOTTE NC BRINGS PARAMOUNT TO 38 COVERAGE WJZY WHICH IS ALSO BECOMING AN AFFILIATE OF THE PARAMOUNT NETWORK IS OWNED BY RALEIGHBASED CAPITOL BROADCASTING CO RIVER CITY IS ALSO NEGOTIATING TO BUY PARAMOUNT'S OWNED STATION IN SAN ANTONIO KRRT WHICH IS AN AFFILIATE OF NEWS CORP'S FOX NETWORK BARRY BAKER RIVER CITY CHIEF EXECUTIVE DENIED REPORTS THAT THE PURCHASE OF THE PARAMOUNT STATION AND THE AFFILIATION AGREEMENT WERE LINKED THE PARAMOUNT NETWORK WAS A SUPERIOR PLAN HE SAID PARTLY BECAUSE BOTH PARAMOUNT AND CHRISCRAFT OWN STATIONS THAT WILL BENEFIT FROM THE NEW NETWORK AND CAN HELP THE COMPANIES COMPENSATE FOR SOME OF THE EXTENSIVE COSTS ESTIMATED AT ABOUT 300 MILLION ASSOCIATED WITH STARTING A NETWORK PARAMOUNT DOESN'T PLAN TO CHARGE STATIONS TO CARRY ITS NETWORK WARNER BY CONTRAST DOESN'T OWN ANY STATIONS AND IS ASKING STATIONS TO PAY A PERCENTAGE OF THEIR INCREASED PROFITS THAT RESULT FROM THE NEW NETWORK TO SUPPORT THE NETWORK'S PROGRAMMING COSTS 9311290133 931129 STORAGE TANK FIRM SEES CONTINUATION OF REVENUE GROWTH BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL BOTHELL WASH OMEGA ENVIRONMENTAL INC EXPECTS TO MAINTAIN ITS TORRID REVENUE GROWTH LARGELY THROUGH ACQUISITIONS DAVID C KRAVITZ PRESIDENT SAID MR KRAVITZ SAID OMEGA EXPECTS TO MAKE 10 TO 15 ACQUISITIONS IN THE NEXT 14 MONTHS TO 18 MONTHS HE SAID THE COMPANIES ACQUIRED WILL HAVE REVENUE TOTALING 200 MILLION TO 250 MILLION THE PACE OF OUR REVENUE GROWTH WILL CONTINUE ABSOLUTELY MR KRAVITZ SAID IN AN INTERVIEW OMEGA PROVIDES CONSULTING CLEANUP CONSTRUCTION AND OTHER SERVICES TO OWNERS OF UNDERGROUND STORAGE TANKS UNDER FEDERAL REGULATIONS PASSED IN THE LATE 1980S TANK OWNERS MUST CERTIFY THAT THEIR TANKS AREN'T LEAKING AND ARE STRUCTURALLY SOUND SOME ANALYSTS HAVE ESTIMATED THAT THE POTENTIAL MARKET FOR REPAIRING TANKS CERTIFYING THAT THEY MEET REGULATORY STANDARDS AND CLEANING UP ENVIRONMENTAL DAMAGE FROM LEAKS COULD TOP 100 BILLION IN THE US ALONE MR KRAVITZ SAID OMEGA IS THE ONLY COMPANY TO PROVIDE ONESTOP SHOPPING FOR UNDERGROUND STORAGE TANK OWNERS OMEGA ALSO SELLS A LEAKPREVENTION SYSTEM THAT USES REVERSE PRESSURE TO STOP LEAKS FROM OCCURRING IN TANKS OR PIPES HE SAID TANK OWNERS WHO USE THE LEAK PREVENTION TECHNOLOGY CAN CUT THEIR INSURANCE COSTS SIGNIFICANTLY SUCH FACTORS HE SAID GIVE OMEGA A SIGNIFICANT COMPETITIVE EDGE IN THE HIGHLY FRAGMENTED TANKSERVICING INDUSTRY WHICH IS CHARACTERIZED BY THOUSANDS OF SMALL MOMANDPOP OPERATIONS OMEGA RECENTLY REPORTED REVENUE OF 77 MILLION FOR THE FISCAL SECOND QUARTER ENDED SEPT 30 MORE THAN TRIPLE YEAREARLIER REVENUE OF 19 MILLION IT HAD A LOSS FOR THE QUARTER OF 15 MILLION OR SIX CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 12 MILLION OR 15 CENTS A SHARE THERE WERE 253 MILLION SHARES OUTSTANDING IN THE LATEST PERIOD AND 79 MILLION A YEAR AGO OMEGA WHICH WENT PUBLIC IN 1991 HAS NEVER TURNED A PROFIT BUT SOME ANALYSTS PREDICT THE COMPANY WILL BE PROFITABLE NO LATER THAN LATE 1994 OR EARLY 1995 MR KRAVITZ SAID OMEGA'S PROFITABILITY WILL DEPEND ON HOW QUICKLY IT COMPLETES ACQUISITIONS AND HOW EFFECTIVELY IT CAN MANAGE ASSOCIATED COSTS BOOST PROFIT MARGINS AND BEGIN WORK ON SOME LUCRATIVE CONTRACTS IT HAS WON LATELY THE EXECUTIVE SAID OMEGA HAS A LEG UP IN THE INTERNATIONAL TANK CONSTRUCTION AND SERVICING BUSINESS PARTICULARLY IN MEXICO THE COMPANY HAS AN OFFICE IN MEXICO AND IS NEGOTIATING DEALS TO CONSTRUCT AND UPGRADE TANKS AND TO BUILD ENTIRE GAS STATIONS IN MEXICO CONSULTANTS HAVE SAID MEXICO NEEDS 6000 NEW STATIONS TO FUEL A MODERN TRANSPORTATION SYSTEM TO MEET THE DEMANDS OF POPULATION GROWTH AND INCREASING CROSSBORDER TRADE 9311290132 931129 QUANEX SAYS '93 NET TO REFLECT PROBLEMS FROM FIRE IN AUGUST HOUSTON QUANEX CORP EXPECTS FISCAL 1993 NET INCOME TO BE SLIGHTLY LOWER THAN THE MIDDLE OF ANALYSTS' ESTIMATES OF 15 CENTS TO 45 CENTS A SHARE ON SALES OF JUST OVER 600 MILLION ROBERT C SNYDER CHIEF EXECUTIVE OFFICER SAID MR SNYDER DECLINED TO BE MORE SPECIFIC ABOUT RESULTS FOR THE YEAR ENDED OCT 31 BUT HE DID SAY IN AN INTERVIEW THAT THE RESULTS WON'T INCLUDE ANY BENEFITS FROM THE COMPANY'S BUSINESSINTERRUPTION INSURANCE WHICH WILL BE REFLECTED LATER IN LATE AUGUST QUANEX REPORTED A MAJOR FIRE AT ITS LINCOLNSHIRE ILL ALUMINUM COLDROLLING FACILITY THAT HAS AFFECTED US TAKING MAYBE A MILLION FROM EARNINGS MR SNYDER SAID WE WILL REPORT A SLIGHT LOSS IN ALUMINUM MR SNYDER SAID OF THE STEEL AND ALUMINUM MAKER'S OPERATING RESULTS WITHOUT THE FIRE WE WOULD HAVE BEEN AT ABOUT BREAKEVEN IN ALUMINUM FOR FISCAL 1992 QUANEX HAD A NET LOSS OF 189 MILLION OR 170 A SHARE AFTER A 251 MILLION CHARGE FROM AN ACCOUNTING ADJUSTMENT AND A 72 MILLION WRITEDOWN OF ASSETS SALES WERE 5721 MILLION FOR THE FIRST NINE MONTHS OF FISCAL 1993 QUANEX REPORTED NET INCOME OF 51 MILLION OR FIVE CENTS A SHARE ON SALES OF 4563 MILLION MR SNYDER SAID HE EXPECTS THE LINCOLNSHIRE MILL TO BE BACK IN FULL OPERATION IN FEBRUARY OR MARCH THAT PLANT WILL BE STATE OF THE ART HE SAID REFLECTING 15 MILLION IN REPAIRS AND UPGRADES HE MAINTAINS THAT GIVEN INSURANCE COVERAGE THE COMPANY'S BIGGEST COST FROM THE FIRE IS ITS INTERRUPTED TRAINING OF OUR PEOPLE WE'VE LOST THAT CONTINUITY THAT'S PUT US BEHIND MAYBE SIX MONTHS GENERALLY THE STRONG RESULTS FOR THE FOURTHQUARTER AND YEAR REFLECT QUANEX'S INVESTMENTS IN ITS STEEL OPERATIONS ESPECIALLY THE MOVE AWAY FROM COMMODITY PRODUCTS TOWARD PRODUCTS WITH HIGHER PROFIT MARGINS WE KEEP MOVING UP THE LADDER IN QUALITY MR SNYDER SAID SO MUCH SO THAT WHILE STANDARD MARKETGRADE STEEL SELLS FOR 325 A TON QUANEX IS GETTING 500 A TON HE SAYS A BIG BUYER FOR QUANEX STEEL IS THE AUTOMOTIVE INDUSTRY INCLUDING JAPANESE CAR MANUFACTURERS 9311290131 931129 LAB NOTES BY JERRY E BISHOP BABY BOOMERS MAY BE PAYING A PRICE FOR THE SIMPLIFIED TEXTBOOKS THAT THEY WERE GIVEN IN GRADE SCHOOL TO FIND OUT WHY SCORES ON THE SCHOLASTIC APTITUDE TEST'S VERBAL PORTION HAVE BEEN LOW SINCE THE 1960S CORNELL UNIVERSITY SOCIOLOGIST DONALD HAYES MEASURED THE READING DIFFICULTY OF 766 SCHOOLBOOKS USED BETWEEN 1860 AND 1991 HE USED A COMPUTERIZED SCORING SYSTEM TO DETERMINE THE PROPORTION OF THE MOST COMMONLY USED WORDS IN A TEXT WITH THE OF AND AND TOPPING THE LIST A COMPOSITE OF 61 NEWSPAPERS WAS ARBITRARILY SET AT A DIFFICULTY RATING OF ZERO SO THAT ANY TEXT SCORING BELOW ZERO WAS CONSIDERED TO BE SIMPLER THAN THE AVERAGE NEWSPAPER A HIGHLY TECHNICAL SCIENTIFIC ARTICLE SCORED PLUS 586 WHILE A FARMER TALKING TO HIS COWS SCORED MINUS 557 TIME MAGAZINE SCORED A PLUS 68 WHILE THE WALL STREET JOURNAL AT PLUS 133 WAS THE MOST DIFFICULTTOREAD NEWSPAPER UNDER THE SYSTEM DEVISED BY PROF HAYES HE FOUND THAT THE READING DIFFICULTY OF ELEMENTARYSCHOOL TEXTBOOKS DROPPED AFTER WORLD WAR II IN AN ATTEMPT TO MAKE IT EASIER FOR KIDS TO LEARN TO READ FIRSTGRADE READERS WERE 12 POINTS LOWER THAN FIRSTGRADE READERS USED IN THE 1930S AND WERE ABOUT THE SAME LEVEL AS THE FARMER TALKING TO HIS COWS IT'S GOTTEN BETTER RECENTLY FOR TEXTS USED IN THE FIRST SECOND AND THIRD GRADES WHICH ARE BACK TO PREWAR LEVELS PROF HAYES SAYS BUT THE TEXTS FOR THE FOURTH THROUGH EIGHTH GRADES HAVE BEEN DECLINING SINCE 1965 AND NOW ARE THE SIMPLEST THEY'VE EVER BEEN HE SAYS TODAY'S SIXTHGRADE TEXTS ARE AS SIMPLE AS THE MCGUFFEY READER USED BY FOURTH GRADERS IN 1896 HE SAYS PROF HAYES NOTES THAT THE DROP IN THE SCORES ON THE GENERAL KNOWLEDGE AND VOCABULARY SAT IN THE 1960S COINCIDED WITH THE FIRST WAVE OF BABY BOOMERS WHO USED THE SIMPLER TEXTBOOKS BEGINNING TO TAKE THE TEST IT'S NOT THAT STUDENTS ARE ANY DUMBER THAN THEY USED TO BE BUT THAT THEY HAVEN'T GOTTEN FROM THE SCHOOLS THE DEPTH OF KNOWLEDGE THEY USED TO GET PROF HAYES SAYS OLD TECHNOLOGIES ARE BECOMING NEW WEAPONS IN THE BATTLE TO CLEAN UP CHEMICAL SPILLS THAT HAVE SOAKED DEEP INTO THE GROUND A MAJOR CLEANUP PROBLEM AT THOUSANDS OF SITES SUCH AS THOSE WHERE THE AIR FORCE WASHED PAINT OFF AIRCRAFT WITH A SOLVENT LATER FOUND TO CAUSE CANCER IS THE TENDENCY FOR THE CONTAMINATED GROUND WATER TO BECOME TRAPPED DEEP DOWN IN LAYERS OF IMPERMEABLE CLAYS OR SILTS IN RESPONSE TO A US ENVIRONMENTAL PROTECTION AGENCY PLEA MONSANTO RESEARCHERS BEGAN EXPERIMENTING THIS YEAR WITH ELECTROOSMOSIS USED FOR HALF A CENTURY TO DRY OUT WATERSOAKED DAMS AND OTHER SOILS SAID PHILIP BRODSKY MONSANTO'S DIRECTOR OF CORPORATE RESEARCH AT A RECENT GATHERING OF SCIENCE REPORTERS AT WASHINGTON UNIVERSITY IN ST LOUIS THE TECHNIQUE APPLIES A LOWVOLTAGE ELECTRIC CURRENT TO ELECTRODES DRIVEN DOWN TO THE CONTAMINATED CLAYS CONTAMINATED WATER WHICH IS POSITIVELY CHARGED IS ATTRACTED TO THE NEGATIVE ELECTRODE MOVING TOWARD IT THROUGH THE TIGHTLY PACKED CLAY AT A RATE OF ABOUT AN INCH A DAY MONSANTO EXPERIMENTS SHOWED ABOUT 3 WORTH OF ELECTRICITY CLEANED CONTAMINATE FROM A CUBIC YARD OF CLAY IN THE LABORATORY SHARPLY LOWER THAN THE 200 TO 1000 THAT IT COSTS TO DIG UP AND TREAT THAT AMOUNT OF CLAY ABOVE GROUND MONSANTO IS TALKING WITH FEDERAL AGENCIES AND COMPANIES SUCH AS DUPONT AND GENERAL ELECTRIC ABOUT COMBINING ELECTROOSMOSIS WITH THEIR TECHNOLOGIES FOR INSTANCE HYDROFRACTURING USED BY OIL COMPANIES TO IMPROVE OIL WELL FLOW COULD INITIALLY FORCE CRACKS INTO THE LAYERS OF CLAY ELECTROOSMOSIS WOULD THEN PULL THE CONTAMINATES INTO TREATMENT ZONES BORE HOLES FILLED WITH SAND OR CARBON GRANULES WHERE MICROBES DEVELOPED BY GENETIC ENGINEERS COULD BIODEGRADE THE CHEMICAL A SPILL SITE FOR A POTENTIAL DEMONSTRATION IN 1995 IS AT THE ATOMIC BOMB PLANT IN PADUCAH KY DR BRODSKY SAYS TOFU MAY JOIN BROCCOLI KALE AND CARROTS ON THE LIST OF FOODS THAT MIGHT REDUCE THE RISK OF CANCER ONE JAPANESE AND TWO FINNISH SCIENTISTS RECENTLY TEAMED UP TO SEE IF DIET COULD EXPLAIN WHY JAPANESE MEN HAVE A LOWER DEATH RATE FROM PROSTATE CANCER THAN WESTERNERS EVEN THOUGH THEY HAVE ABOUT THE SAME INCIDENCE OF SMALL PROSTATE CANCERS THE SCIENTISTS SPECULATED THAT THE JAPANESE DIET MAY KEEP SMALL PROSTATE CANCERS FROM GROWING INTO DEADLY TUMORS THEY NOTED THAT SEVENTH DAY ADVENTIST MEN WHO HAPPEN TO EAT A LOT OF LENTILS PEAS BEANS AND DRIED FRUITS HAVE A LOW DEATH RATE FROM PROSTATE CANCER AS DO JAPANESE MEN IN HAWAII WHO CONTINUE TO EAT RICE AND TOFU THESE FOODS ARE RICH IN ISOFLAVONOIDS PLANT VERSIONS OF FEMALE SEX HORMONE ESTROGEN THAT INHIBIT THE GROWTH OF CANCER CELLS IN THE TEST TUBE PROSTATE CANCERS ARE AFFECTED BY THE SEX HORMONES THE RESEARCHERS ANALYZED BLOOD SAMPLES FROM 14 JAPANESE MEN WHO ATE THE TYPICAL SOYRICH JAPANESE DIET AND 14 FINNISH MEN WHO ATE THE TYPICAL DAIRYANDMEAT DIET OF FINLAND THE LEVELS OF THE ESTROGENLIKE ISOFLAVONOIDS WERE SEVEN TO 114 TIMES HIGHER IN THE BLOOD OF THE JAPANESE MEN THAN IN THE FINNS A LIFELONG HIGH CONCENTRATION OF ISOFLAVONOIDS IN BLOOD PLASMA MIGHT EXPLAIN WHY JAPANESE MEN HAVE SMALL LATENT CARCINOMAS CANCERS THAT SELDOM DEVELOP TO CLINICAL DISEASE THE RESEARCHERS SUGGEST IN A NOVEMBER ISSUE OF THE BRITISH MEDICAL JOURNAL THE LANCET BONDING LAMBS TO COWS IN PENS AND THEN LETTING THEM GRAZE TOGETHER ON THE RANGE SHARPLY CUTS COYOTE RAIDS ON THE SHEEP US AGRICULTURE DEPARTMENT RESEARCHERS IN LAS CRUCES NM DISCOVER A SUICIDAL BRITON WHO BREATHED HIS CAR'S EXHAUST FUMES FOR AN HOUR SURVIVED BECAUSE THE CATALYTIC CONVERTER REDUCED CARBON MONOXIDE EMISSIONS REPORTS THE LANCET 9311290130 931129 BUSINESS BRIEF LAC MINERALS LTD RESCUE CREWS ARE SEEKING TWO MISSING MINE WORKERS LAC MINERALS LTD TORONTO SAID RESCUE OPERATIONS ARE CONTINUING AT ITS MACASSA GOLD MINE IN NORTHERN ONTARIO IN AN ATTEMPT TO FIND TWO WORKERS MISSING SINCE A ROCK BURST AT THE SITE FRIDAY MORNING THE GOLD MINING CONCERN SAID RESCUERS HAVE SUCCEEDED IN GAINING ACCESS TO THE AREA OF THE MINE WHERE THE WORKERS ARE BELIEVED TO BE LOCATED A COMPANY OFFICIAL DECLINED FURTHER COMMENT THE MACASSA MINE PRODUCES ABOUT 180000 TONS OF ORE ANNUALLY AND ABOUT 90000 OUNCES OF GOLD A COMPANY OFFICIAL SAID ALL THE MINE'S OPERATIONS HAVE BEEN SUSPENDED IN ORDER TO SEARCH FOR THE TWO MISSING MEN 9311290129 931129 BUSINESS BRIEF UPSTART FIRM TAKING ON BIG RIVALS WITH ITS RECORDABLE GREETING CARDS AN UPSTART FIRM HEADED BY A FORMER HASBRO INC EXECUTIVE IS SET TO LAUNCH ITS OWN RECORDABLE GREETING CARDS THIS WEEK IN A DIRECT CHALLENGE TO INDUSTRY GIANTS HALLMARK CARDS INC AND AMERICAN GREETINGS CORP GREETINGS FROM NEWPORT INC DOESN'T HAVE THE DISTRIBUTION CLOUT OF ITS COMPETITORS WHO PLAN TO ROLL OUT THEIR PRODUCTS EARLY NEXT YEAR BUT THE CLOSELY HELD NEWPORT RI FIRM IS SHIPPING ITS CARDS TO MAJOR DRUGSTORE CHAINS FOR THE CHRISTMAS SEASON AND SAYS THE CARDS WILL BE IN ABOUT 200 STORES BY WEEK'S END THE HEAD OF THE FIRM PAUL SULLIVAN WHO WAS VICE PRESIDENT OF PRODUCT DEVELOPMENT FOR HASBRO WHEN HE LEFT IN 1975 IS BETTING THAT SLIGHTLY BETTER SOUND QUALITY PLUS A TOLLFREE NUMBER AND AN ADVERTISING CAMPAIGN ON CABLE CHANNELS WILL WIN OVER CONSUMERS BEFORE HALLMARK AND AMERICAN GREETINGS HAVE A CHANCE TO COMPETE THE TV AD CAMPAIGN FOR THE AUDIO CARDS WHICH STARTED WEDNESDAY FEATURES THE SLOGAN THERE'S ONLY ONE WAY TO SAY IT SAY IT YOURSELF ITS CREATORS INCLUDE JOE SHELESKY A VETERAN OF THE COLA WARS WHO IS WELLKNOWN FOR HIS WORK AS ART DIRECTOR ON COCACOLA CO'S DIET COKE JUST FOR THE TASTE OF IT CAMPAIGN MR SULLIVAN'S RECORDABLE CARDS ARE A LOT LIKE HALLMARK'S BOTH USE THE SAME SOUND CHIP MADE BY CLOSELY HELD INFORMATION STORAGE DEVICES INC OF SAN JOSE CALIF BOTH CAN RECORD A 10SECOND GREETING WHICH PLAYS AUTOMATICALLY WHEN THE CARD IS OPENED AND BOTH COST 995 HOWEVER THE SAY IT YOURSELF CARDS SOUND SLIGHTLY BETTER BECAUSE THE CHIP MICROPHONE AND SPEAKER ARE HOUSED IN INJECTED MOLDED PLASTIC THE HALLMARK CARDS HOUSED IN LESS PLASTIC SOUND SLIGHTLY TINNIER ACCORDING TO AN INFORMAL TEST OF THE CARDS SENT BY THE COMPANIES TO THE WALL STREET JOURNAL BOTH CARDS SOUND BETTER THAN AMERICAN GREETINGS' SOUND SURPRISES CARDS WHICH IS BASED ON A CHIP MADE BY RB&B INC OF BEAVERTON ORE THE CHIP IS HOUSED IN CARDBOARD THE CARD DOESN'T PLAY THE MESSAGE AUTOMATICALLY THE RECIPIENT MUST PRESS A PLAY BUTTON BUT AMERICAN GREETINGS' CARDS COST LESS 795 EACH AND CAN RECORD MESSAGES OF UP TO 20 SECONDS DOUBLE THE COMPETITORS' LENGTH SOME CUSTOMERS HAVE COMPLAINED THAT 10 SECONDS IS TOO LITTLE TIME TO RECORD A SENTIMENT 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 9311290128 931129 ENTERPRISE FRANCHISES SPEARHEAD RENEWED POPULARITY OF COOPS SMALL BUSINESSES JOIN TO FACE RISING COMPETITION AT HOME AND ABROAD BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL COOPS ARE SPREADING FOR DECADES SMALL BUSINESSES IN SUCH FIELDS AS AGRICULTURE FOOD RETAILING AND HARDWARE HAVE JOINED COOPERATIVES TO GIVE THEMSELVES THE PURCHASING LEVERAGE ENJOYED BY THEIR LARGER COMPETITORS BUT NOW THE STRATEGY IS RAPIDLY GAINING CONVERTS AMONG FASTFOOD FRANCHISES SMALL BUSINESSES OF ALL SORTS TRYING TO LOWER HEALTHCARE COSTS SMALL WHOLESALERS AND EVEN A COMPUTERSOFTWARE PRODUCER I THINK COOPERATIVES ARE GOING TO DOMINATE THE WAY A LOT OF SMALL BUSINESSES AND FRANCHISES DO BUSINESS OVER THE NEXT 10 YEARS SAYS RON CEGNAR CHIEF EXECUTIVE OFFICER OF RESTAURANT SERVICES INC CORAL GABLES FLA THE COOP ALREADY HANDLES 15 BILLION IN ANNUAL FOOD PACKAGING AND EQUIPMENT PURCHASES FOR MORE THAN 6000 BURGER KING CORP FRANCHISES MR CEGNAR ADDS ONE OF THE THINGS THAT'S DRIVING THIS IS THAT WE'RE LIVING IN A VALUEORIENTED ECONOMY WHERE PEOPLE ARE MUCH MORE CONCERNED ABOUT INTEGRATING THE LOGISTICS OF PURCHASING AND MARKETING SO THEY CAN LOWER COSTS RESTAURANT SERVICES WAS FOUNDED LAST YEAR IN RESPONSE TO WHAT MR CEGNAR SAYS WERE DECLINING PROFIT MARGINS AND INCREASED COMPETITION IN THE FASTFOOD INDUSTRY HE SAYS THE COOP WHICH IS OWNED BY GRAND METROPOLITAN PLC'S BURGER KING UNIT AND ITS FRANCHISEES HAS MADE THE CHAIN MORE COMPETITIVE BY SUBSTANTIALLY LOWERING PURCHASING COSTS AND ALLOWING INDIVIDUAL OWNERS TO PLAN BETTER FOR THE LONG TERM OTHERS ALSO FIND ADVANTAGES IN COOPS THE COOP STRUCTURE HAS BECOME MUCH MORE MAINSTREAM THAN IT WAS IN THE '70S AND '80S SAYS SUSAN HUANG MARKETING COORDINATOR FOR BLOOMING PRAIRIE INC AN IOWA CITY IOWA COOPERATIVE THAT IS A WHOLESALER OF NUTRITIONAL FOODS BUSINESSES ARE NOW REALIZING THAT THEY HAVE TO COOPERATE TO GET THINGS DONE BUSINESS COOPERATIVES ESSENTIALLY MEMBEROWNED NONPROFIT COALITIONS ESTABLISHED BY A LARGE NUMBER OF SMALL PLAYERS TO GAIN MARKET POWER ARE NOT NEW BENJAMIN FRANKLIN STARTED AN INSURANCE COOPERATIVE IN 1752 AT THE END OF THE LAST CENTURY AND EARLY IN THIS ONE COOPERATIVES GAINED A FOOTHOLD AMONG FARMERS AND HARDWARE WHOLESALERS AND AFTER WORLD WAR II INDEPENDENT FOOD RETAILERS BEGAN ESTABLISHING COOPERATIVES TO COMPETE WITH THE SPREAD OF THE LARGE FOODSTORE CHAINS NOW COOPS ARE GAINING RENEWED POPULARITY BECAUSE OF INCREASED COMPETITION BOTH AT HOME AND ABROAD SMALL COMPANIES THAT ARE UNABLE TO COMPETE WITH BIG CORPORATIONS ARE FINDING THAT IT'S BETTER FOR THEM TO COOPERATE WITH ONE ANOTHER SO THEY CAN REMAIN INDEPENDENT BUT INCREASE THEIR EFFICIENCY SAYS CHARLES SNYDER PRESIDENT OF THE NATIONAL COOPERATIVE BANK A WASHINGTON DC BANK THAT SPECIALIZES IN LOANS TO COOPS MR SNYDER SAYS THE INCREASING ENTHUSIASM FOR COOPS HAS CAUSED THE BANK'S LOAN PORTFOLIO WHICH CURRENTLY TOTALS 12 BILLION TO GROW 13 A YEAR FOR THE LAST FIVE YEARS ACCORDING TO THE BANK ABOUT TWO MILLION BUSINESSES BELONG TO THE COUNTRY'S 20000 COOPS THE HOTTEST NEW SECTOR FOR COOPS HAS BEEN IN THE FRANCHISING FIELD FRANCHISEES OF KENTUCKY FRIED CHICKEN CORP A SUBSIDIARY OF PEPSICO INC STARTED FOOD SERVICE PURCHASING COOP INC IN 1980 IN LOUISVILLE KY FEW OTHER FASTFOOD CHAINS PURSUED A SIMILAR COURSE AT THE TIME BUT TIMES HAVE CHANGED MOST MAJOR FASTFOOD FRANCHISES HAVE COOPS AND IF THEY DON'T THEY'RE EXPLORING IT RIGHT NOW SAYS TOM HENRION FOOD SERVICE'S PRESIDENT MY FEELING IS THAT IT JUST MAKES A LOT OF SENSE FRANCHISERS OFTEN ENCOURAGE THE TREND LARGELY IN HOPES THAT A COOP WILL HELP THEIR FRANCHISEES LOWER COSTS MAKING THE CHAIN MORE ATTRACTIVE TO POTENTIAL NEWCOMERS IN FEBRUARY AMERICA'S FAVORITE CHICKEN CO AN ATLANTA CONCERN THAT IS THE FRANCHISER FOR CHURCH'S FRIED CHICKEN AND POPEYE'S FAMOUS FRIED CHICKEN & BISCUITS ESTABLISHED TWO COOPS TO PURCHASE FOOD PRINTED PAPER PRODUCTS OPERATING SUPPLIES AND DISTRIBUTION SERVICES FOR MORE THAN 1700 FRANCHISEES COOPS ARE SPROUTING UP ALL OVER THE COUNTRY THERE SEEMS TO BE A LOT OF INTEREST THROUGHOUT THE NORTHWEST IN THE IDEA SAYS RICHARD RUBIN MANAGING DIRECTOR OF EMPLOYERS' HEALTH PURCHASING COOP INC A SEATTLE SMALLBUSINESS COOP FORMED LAST FEBRUARY IT'S A MODEL THAT PEOPLE IN DIFFERENT INDUSTRIES ARE FINDING ATTRACTIVE BECAUSE IT MAKES INDIVIDUAL BUSINESSES PART OF A LARGER GROUP THAT SHARES A COMMON PURPOSE IT'S VERY EMPOWERING ALDUS CORP A SMALL SEATTLE SOFTWARE CONCERN WHOSE PAGEMAKER PRODUCT IS A POPULAR DESKTOP PUBLISHING PACKAGE HAS ESTABLISHED WHAT IT SAYS IS THE FIRST COOP IN THE HIGH TECHNOLOGY FIELD IT HAS INVITED MORE THAN 140 INDEPENDENT SOFTWARE PRODUCERS TO JOIN A COOP TO DEVELOP CUSTOMIZED VERSIONS OF PAGEMAKER FOR USE BY PEOPLE IN VARIOUS PROFESSIONS THESE SOFTWARE INDEPENDENTS WOULD REAP ALL PROFITS FROM THE SALE OF THE CUSTOMIZED VERSIONS OF PAGEMAKER BUT NOT SALES OF THE CORE PRODUCT ITSELF THE COOP WOULD OFFER THEM THE BENEFITS OF MARKETING AND DISTRIBUTION WHOSE COSTS TYPICALLY DISSUADE MANY INDEPENDENTS FROM REMAINING ON THEIR OWN WE WANT THEM TO BE INDEPENDENT BUSINESSES AND RUN THEIR OWN COMPANIES AS THEY SEE FIT SAYS KAREN HOWE A SENIOR MARKETING MANAGER WITH ALDUS BUT WE REALIZE THEY'RE NOT GOING TO BE MARKETING WIZARDS THE FIRST TIME OUT THE DOOR FOR ALDUS WHICH FACES STIFF COMPETITION FROM OTHER MAKERS OF PUBLISHING SOFTWARE THE COOP OFFERS THE CHANCE TO AFFORDABLY DEVELOP INNOVATIVE USES AND NEW MARKETS FOR PAGEMAKER COMPANIES REBOUNDING FROM DISASTER HAVE ALSO ADOPTED COOPS COAST TO COASTSTORES INC A DENVER COLO HARDWAREWHOLESALE CHAIN ENTERED BANKRUPTCY ALONG WITH ITS PARENT AMDURA CORP OF TULSA OKLA THREE YEARS AGO COAST TO COAST EMERGED FROM BANKRUPTCY UNCONNECTED TO AMDURA AND ORGANIZED AS A COOP IN 1990 IT IS NOW OWNED BY ITS 850 INDEPENDENT MEMBERS AND BY SERVICE STAR CORP A BUTLER PA HARDWAREWHOLESALE COOP THAT HELPED COAST TO COAST RESTRUCTURE SINCE ORGANIZING AS A COOP COAST TO COAST HAS SEEN ITS REVENUE CLIMB TO 292 MILLION IN THE FISCAL YEAR ENDED LAST JUNE 30 FROM 230 MILLION TWO YEARS EARLIER I THINK THIS KIND OF A CONCEPT REALLY FORCES YOU TO BE MORE RESPONSIVE TO YOUR MEMBERS SAYS KEN DURRETT COAST TO COAST'S CHIEF FINANCIAL OFFICER I THINK MORE AND MORE SMALL BUSINESSES ARE GOING TO USE THIS STRATEGY 9311290127 931129 BUSINESS BRIEF BROWNINGFERRIS INDUSTRIES INC OHIO'S EPA GIVES PERMIT TO UNIT TO IMPROVE LANDFILL BROWNINGFERRIS INDUSTRIES INC SAID THE OHIO ENVIRONMENTAL PROTECTION AGENCY ISSUED ITS UNIT BROWNINGFERRIS INDUSTRIES OF NORTHERN OHIO A PERMIT TO IMPROVE THE BFI GLENWILLOW LANDFILL LOCATED IN CUYAHOGA COUNTY THE COMPANY SAID THE IMPROVEMENTS INCLUDE A TIEIN TO THE PUBLIC WATER SYSTEM ALONG WITH THE EVENTUAL DEVELOPMENT OF AN INDUSTRIAL PARK THE DEVELOPMENT IS EXPECTED TO START IN 1994 9311290126 931129 MARKETING & MEDIA MOVIEGOERS DIDN'T CELEBRATE HOLIDAY AT THE MOVIES TICKET SALES FELL 20 BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD TICKET SALES AT THE NATION'S MOVIE THEATERS OVER THE FIVEDAY THANKSGIVING HOLIDAY FELL MORE THAN 20 FROM A YEAR AGO WITH STUDIO EXECUTIVES BLAMING BAD WEATHER AND A LESS POPULAR CROP OF FILMS THE WINNER WAS TWENTIETH CENTURY FOX'S MRS DOUBTFIRE STARRING ROBIN WILLIAMS IN A DRESS WHICH TOOK IN AN ESTIMATED 271 MILLION OVER THE FIVE DAYS WHILE SOME INDUSTRY EXECUTIVES HAD PROJECTED THE BOXOFFICE GROSS WOULD BE HIGHER FOX EXECUTIVES SAID THAT THE FILM'S OPENING HAD A SIMILAR PATTERN TO THE SUCCESSFUL HOME ALONE AND THAT AUDIENCES WERE GIVING THE FILM A HIGH RATING AMONG THE DISAPPOINTMENTS WARNER BROS' A PERFECT WORLD FEATURING TWO OF THE INDUSTRY'S BIGGEST STARS CLINT EASTWOOD AND KEVIN COSTNER WARNER'S COMPETITORS SAID THE MOVIE'S TAKE OF 114 MILLION WAS LACKLUSTER CONSIDERING ITS POWERFUL HEADLINERS UPBEAT REVIEWS FROM CRITICS DIDN'T HELP SWAY AUDIENCES WHO APPARENTLY DIDN'T RELISH SEEING MR COSTNER AS A BAD GUY IN A DOWNBEAT DRAMA WARNER IS A UNIT OF TIME WARNER INC I WAS DISAPPOINTED IN THE BUSINESS OVERALL SAID NIKKI ROCCO SENIOR VICE PRESIDENT AT UNIVERSAL PICTURES A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA IF THESE PICTURES CAN'T PULL IT OUT NOW IN FIVE DAYS WHEN ARE THEY GOING TO DO IT INDUSTRY EXECUTIVES ESTIMATED THAT ALL FILMS GROSSED ABOUT 106 MILLION OVER THE PAST FIVE DAYS DOWN 21 FROM 134 MILLION LAST YEAR THE DROP IN THE GROSS FOR THE TOP FIVE FILMS ALONE WAS ALMOST 40 FROM A YEAR AGO LED BY HOME ALONE 2 ALADDIN AND THE BODYGUARD THE TOP FIVE MOVIES LAST YEAR ACCOUNTED FOR 114 MILLION IN GROSS TICKET SALES THIS YEAR'S TOP FIVE TOTALED JUST OVER 69 MILLION MANY EXECUTIVES VOICED CONCERN BECAUSE TICKET SALES TYPICALLY FALL SHARPLY IN THE WEEK OR TWO AFTER THANKSGIVING WHEN CONSUMERS ARE BUSY SHOPPING THE INDUSTRY STILL SEEMS GUARANTEED TO SET A NEW BOXOFFICE RECORD FOR THE YEAR CRUSHING 1989'S RECORD OF 503 BILLION THE RECORD WILL BE BROKEN LARGELY BECAUSE OF UNIVERSAL'S SUMMER BLOCKBUSTER JURASSIC PARK PARAMOUNT PICTURES' ADDAMS FAMILY VALUES WAS THE NO 2 MOVIE OF THE WEEKEND CHARTING AN ESTIMATED TAKE OF 147 MILLION FOR A GROSS OF 306 MILLION SINCE ITS OPENING NOV 19 ALTHOUGH EXECUTIVES AT THE PARAMOUNT COMMUNICATIONS INC STUDIO SAID THEY ARE HAPPY WITH THE TAKE THE SEQUEL ISN'T PERFORMING AS WELL AS THE ORIGINAL ADDAMS FAMILY IN 1991 THAT MOVIE TOOK IN MORE THAN 55 MILLION AFTER ITS FIRST TWO WEEKENDS SOME STUDIOS HAVE WORKED TO COUNTER THE POSTTHANKSGIVING DOLDRUMS THAT ARE EXPECTED TO SET IN THIS WEEK FOX FOR EXAMPLE DECIDED TO LIMIT THE OPENING RELEASE OF MRS DOUBTFIRE TO JUST OVER 1600 PRINTS IT PLANS TO ADD MANY SMALLER TOWNS FOR A TOTAL OF 2200 SCREENS ON FRIDAY DEC 17 WHEN MOVIEGOING IS EXPECTED TO INCREASE THERE ARE A LOT OF TOWNS THAT CAN'T PLAY A PICTURE FOR MORE THAN TWO OR THREE WEEKS BUT THEY'RE IMPORTANT SAID TOM SHERAK EXECUTIVE VICE PRESIDENT AT FOX A UNIT OF NEWS CORP IF YOU OPEN TOO EARLY IN THOSE PLACES YOU WON'T MAKE IT TO CHRISTMAS HE NOTES THAT THE DAYS BETWEEN CHRISTMAS AND NEW YEAR'S CAN BE THE HIGHEST GROSSING OF THE SEASON BECAUSE MANY PEOPLE ARE ON VACATION UNIVERSAL HAD PROBLEMS WITH WE'RE BACK A DINOSAUR'S STORY AN ANIMATED FILM FROM STEVEN SPIELBERG THAT GROSSED A DISAPPOINTING 46 MILLION ON 1823 SCREENS OVER THE FIVE DAYS INDUSTRY EXECUTIVES SAID THE FILM IS ANOTHER EXAMPLE OF HOW DIFFICULT IT IS FOR A STUDIO OTHER THAN WALT DISNEY CO TO BREAK INTO ANIMATED FILMS ANOTHER FAMILY MOVIE WARNER'S THE NUTCRACKER ALSO FLOPPED DESPITE ITS YOUNG STAR MACAULAY CULKIN AND MOSTLY FAVORABLE REVIEWS THE FILM POSTED A DISMAL TAKE OF 950000 ON 786 SCREENS 9311290125 931129 PEPPERAND SALT AND DOESN'T RING TRUE AND WHAT WILL BE WILL BE PUT MILLIONS AWAY FOR ME IT'S HONORABLE MUNCHIN' 9311290124 931129 INTERNATIONAL WASHINGTON INSIGHT FORMER SOVIET BANKING SYSTEM NEEDS BIG DOSE OF RESOLUTION TRUST MEDICINE BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HERE'S A NEW MISSION FOR THE RESOLUTION TRUST CORP THE EUPHEMISTICALLY NAMED GARBAGE DUMP FOR FAILED SAVINGS AND LOANS MOVE TO MINSK AND TAKE OVER THE MOUNTAIN OF REEKING DEBT LEFT BY THE SOVIET BANKING SYSTEM UNTIL THE RTC OR SOMETHING LIKE IT STEPS IN THE BAD LOANS LEFT BY COMMUNISM WILL WEIGH DOWN BANKS IN RUSSIA AND OTHER POSTCOMMUNIST STATES MAKING IT ALL BUT IMPOSSIBLE FOR THEM TO FINANCE THE NEW ENTERPRISE ECONOMIES THAT WILL HAVE TO TAKE UP THE SLACK AS OLD STATEOWNED DINOSAURS WOBBLE INTO BANKRUPTCY UNDER COMMUNISM SOVIET BANKS DIDN'T DO WHAT BANKS GENERALLY DO ASSESS RISKS AND EXTEND CREDIT RATHER THEY ESSENTIALLY SERVED AS CONDUITS FOR RUBLES THAT CENTRAL PLANNERS DIRECTED TO VARIOUS ENTERPRISES MONEY WAS LADLED OUT TO INDUSTRIES IN THE SAME WAY THAT OIL OR STEEL WAS ALLOCATED NOW BANKS ARE REELING FROM DEBTS THAT WERE BUILT UP UNDER THIS WACKY SYSTEM AS THE OLD SOVIET ECONOMY CONTINUES TO CONTRACT MANY BORROWERS CAN'T REPAY THE BANKS CAN BE CAUGHT IN THE POSITION OF EXTENDING GOOD MONEY AFTER BAD SAYS WILFRIED KAFFENBERGER VICE PRESIDENT FOR OPERATIONS AT THE INTERNATIONAL FINANCE CORP THE PRIVATESECTOR ARM OF THE WORLD BANK BY FLINGING MONEY AT DUBIOUS ENTERPRISES JUST TO KEEP THEM CHUGGING ALONG THE BANKS ARE FEEDING THE INFLATIONARY CYCLE THAT CONTINUES TO IMPERIL THE ECONOMIC STABILITY THAT RUSSIA DESPERATELY NEEDS THE WAY IT NEEDS TO BE STOPPED SAYS MR KAFFENBERGER IS TO REMOVE THE BAD ASSETS FROM THE BANKS' BALANCE SHEETS THE MOST BASIC FORMULA FOR LIGHTENING SUCH A LOAD IS FOR THE GOVERNMENT TO LIFT BAD DEBTS OFF THE BANKS' BOOKS AND INJECT GOVERNMENT BONDS IN THEIR PLACE UNDER THIS APPROACH THE BAD DEBTS GO TO AN RTCLIKE FACILITY THAT CAN SELL PHYSICAL ASSETS OR AUCTION THE LOANS AT DEEP DISCOUNTS YET ODDLY BANKING REFORM SOMETIMES HAS BEEN RELEGATED TO AN AFTERTHOUGHT BY THE ECONOMIC DOCTORS WHO TREAT THE WORLD'S WOUNDED ECONOMIES THE CONCENTRATION NORMALLY HAS BEEN ON THE INDUSTRIAL SECTOR AND PHYSICAL INFRASTRUCTURE THAT'S NEEDED TO SUPPORT IT TAKE CARE OF THESE AND A FUNCTIONING BANKING SYSTEM WILL INEVITABLY FOLLOW IT'S BEEN THOUGHT BUT LATELY THERE'S BEEN MORE EVIDENCE THAT THE STATE OF THE FINANCIAL SYSTEM INFLUENCES AND PREDICTS GROWTH SAYS ROSS LEVINE A WORLD BANK ECONOMIST FOR EXAMPLE RECENT STUDIES SHOW THAT BANKING REFORMS IN ECUADOR AND INDONESIA INCREASED ACCESS TO CREDIT FOR SMALLER COMPANIES IN THOSE COUNTRIES CONTRIBUTING TO GROWTH ATTEMPTS BY THE POSTCOMMUNIST COUNTRIES TO RESHAPE THEIR ECONOMIES MAKE THE NEED FOR BANKING REFORM EVEN MORE IMPORTANT THERE AS PRIVATIZATION AND RESTRUCTURING CONTINUE IT'S POSSIBLE EVEN MORE LOANS WILL FALL INTO THE DUBIOUSDEBT CATEGORY REQUIRING FUTURE SHIFTING OF ASSETS OFF THE BANKS' BOOKS BEYOND THAT GETTING BANKS IN THE POSTCOMMUNIST ECONOMIES TO PROVIDE FINANCING TO SMALL ENTERPRISES WILL BE A CONTINUING CHALLENGE HUNGARY POLAND AND THE CZECH REPUBLIC ALREADY HAVE PUT PROGRAMS IN PLACE TO SCRAPE BAD DEBTS OFF THE BANKS' BOOKS SLOVENIA WITH SOME HELP FROM THE IFC IS WORKING ON A SIMILAR PROJECT BUT RUSSIA AND THE OTHER FORMER SOVIET REPUBLICS HAVEN'T BEGUN TO TACKLE THE PROBLEM AND EVEN IN POLAND AND HUNGARY BANKS HAVE BEEN RELUCTANT TO FINANCE STARTUP BUSINESSES THE PSYCHOLOGICAL THING THAT HAPPENS IS THAT THESE BANKS GET THEIR BALANCE SHEETS CLEANED UP AND THEY BECOME EXTREMELY RISKAVERSE SAYS THE IFC'S MR KAFFENBERGER CREDIT EXTENSION FOR SMALL ENTREPRENEURS IS AN UNSOLVED PROBLEM IN ADDITION NEW OR RESTRUCTURED EAST BLOC BANKS HAVE TENDED TO FOCUS ON FOREIGN CURRENCY DEALING AND EXPORT FINANCE THIS IS HELPFUL BUT IT DOESN'T DO MUCH FOR THE WOULDBE ENTREPRENEUR WHO NEEDS A LOAN THE NIGGLING SUPPORT FOR SMALL BUSINESSES SHOULDN'T SURPRISE ANYONE THE SOVIET BANKING SYSTEM HAS NEVER ATTEMPTED THE TASK BASIC TO WESTERN FINANCIAL INSTITUTIONS OF IDENTIFYING AND SUPPORTING CREDITWORTHY CUSTOMERS MOST BANKERS IN THE COMMUNIST WORLD NEVER GLIMPSED A NORMAL BALANCE SHEET OR ASSESSED A POTENTIAL CUSTOMER'S BUSINESS PROSPECTS TIME MAY TAKE CARE OF THAT WHAT TIME CAN'T TAKE CARE OF IS THE LEFTOVER BAD DEBTS THEY'LL ONLY GET WORSE AND MAKE IT HARDER FOR THE BANKS TO DO THE JOB OF FINANCING NEW ECONOMIC ACTIVITY THAT'S WHERE THE RTC COULD COME IN ACCORDING TO REPORTS HERE THE AGENCY HAS BECOME GRUMPY AND UNPRODUCTIVE AS IT WINDS DOWN THE MASSIVE DEBT CLEANUP IT UNDERTOOK TO SOLVE THE AMERICAN THRIFT CRISIS A MOVE TO MINSK WOULD PROVIDE A NEEDED SHOT IN THE ARM 9311290123 931129 I'D LIKE TO BE UNDER THE SEA IN A LUXURY SUBMARINE WITH YOU BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL THE LUXURYBOAT MARKET IS ABOUT TO TAKE A DIVE LITERALLY FOR THE SKIPPER WHO HAS EVERYTHING US SUBMARINES INC HAS DESIGNED WHAT IT CALLS THE WORLD'S FIRST PERSONAL LUXURY SUBMARINE WITH A STARTING PRICE OF 45 MILLION THE PLANNED CUSTOMBUILT SUB IS A FAR CRY FROM THE GRIM QUARTERS DEPICTED IN WAR MOVIES THE LOOK IS MORE PRIVATE JET THAN NAVY SURPLUS WITH PLANS CALLING FOR THE AIRCONDITIONED INTERIOR TO BE CLOAKED IN WOOL CARPETS AND WALNUT FINISHES THE BOAT WILL SLEEP SIX COMPLETE WITH A QUEENSIZE BED NEXT TO A FIVEFOOT PORTHOLE THE DIESEL AND BATTERYPOWERED CRAFT IS CAPABLE OF SILENT RUNNING UNDERWATER FOR THREE DAYS AT A STRETCH THE PURCHASE PRICE INCLUDES AN INTENSIVE TWOWEEK TRAINING COURSE AND PLENTY OF SAFEGUARDS ARE BUILT IN FOR EXAMPLE THE VESSEL WON'T DIVE WHEN THE HATCH IS OPEN NO ONE HAS ORDERED ONE OF THE SUBS YET BUT THE PRINCIPALS OF THE NEW COMPANY WHICH IS BASED IN ANACORTES WASH SAY THEY HAVE BEEN PAID TO BEGIN DESIGN WORK ON A BOAT AND EXPECT SEVERAL ORDERS SOON BOAT BROKER GEORGE SPYROU SAYS HE IS TALKING TO SEVERAL HIGH NETWORTH LONDONBASED GREEKS IN THE SHIPPING BUSINESS WHO ARE EAGER TO ADD THE SUBS TO THEIR PERSONAL FLEETS L BRUCE JONES THE FOUNDER AND PRESIDENT OF US SUBMARINES SEES POTENTIAL CLIENTS BUYING THE SUBMARINES AS A WAY OF OUTDOING FELLOW OWNERS OF 150FOOT YACHTS IT SORT OF ADDS NEW MEANING TO THE PHRASE CONSPICUOUS CONSUMPTION' HE SAYS A LOT OF THEM ARE SORT OF EGOMOTIVATED SOME BOATERS HOWEVER ARE SKEPTICAL OF WHAT LURKS BENEATH THE DEEP IT WOULD NOT APPEAL TO ME HOW MANY TIMES WOULD I USE IT SAYS IRWIN L JACOBS OWNER OF A LARGE YACHT AND CHAIRMAN OF MINSTAR INC A MINNESOTA COMPANY THAT MAKES HATTERAS YACHTS I'M SURE THAT THERE IS SOMEONE OUT THERE THAT WILL BUY ONE HE ADDS BUT I DON'T KNOW WHO THAT WILL BE ALSO NOT THE SLIGHTEST BIT TEMPTED IS TOM CLANCY AUTHOR OF THE HUNT FOR RED OCTOBER I HAVEN'T GOT MY LEAR JET YET HE SAYS BUT ROBIN LEACH TV HOST AND AUDUBON TO THE RICH AND FAMOUS PREDICTS THAT THE STYLISH SUBS MAY SOON BECOME THE TOAST OF MONTE CARLO HARBOR THE TOUGHEST SALE WILL BE THE FIRST SALE SAYS MR LEACH THEN HE SAYS IF MR MEGABUCKS HAS ONE MR MOGUL WILL WANT ONE 9311290122 931129 RTC FILES SUITS AGAINST THE AUDITORS LAWYERS DIRECTORS OF DEFUNCT THRIFT BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RESOLUTION TRUST CORP FILED LAWSUITS AGAINST THE AUDITORS LAWYERS AND DIRECTORS OF SAN JACINTO SAVINGS ASSOCIATION A DEFUNCT HOUSTON THRIFT THAT PARTICIPATED IN SOME OF THE BIGGEST REALESTATE AND BANKING BUSTS OF THE 1980S THE RTC ACCUSED THE ACCOUNTING FIRM GRANT THORNTON OF ALLOWING THE THRIFT TO BOOK MASSIVE FICTIONAL PROFITS FROM LOANS THAT HELPED BUILD THE REALESTATE SYNDICATION BUSINESS OF SAN JACINTO'S PARENT SOUTHMARK CORP WHICH IS BASED IN DALLAS SOUTHMARK ONCE A 9 BILLION HOLDING COMPANY SOUGHT BANKRUPTCYCOURT PROTECTION IN 1989 AND HAS LIQUIDATED MOST OF ITS ASSETS IN A RELATED BUT SEPARATE ACTION THE RTC SUED AKIN GUMP STRAUSS HAUER & FELD ALLEGING THAT LAWYERS AT THE FIRM FAILED TO HALT FOUR FAULTY LOANS AT SAN JACINTO CAUSING 44 MILLION IN LOSSES THE RTC ALSO CHARGED IN A SEPARATE SUIT THAT SIX FORMER DIRECTORS OF SAN JACINTO ABDICATED THEIR RESPONSIBILITY FOR CHECKING THE LOANS THAT FUELED THE THRIFT'S GROWTH TO 46 BILLION IN ASSETS THE RTC ALSO SUED GENE E PHILLIPS FORMER CHAIRMAN OF SOUTHMARK AND QUOTED A 1985 REGULATORY REPORT THAT DESCRIBED SAN JACINTO AS AN INSTITUTION WHICH IS OUT OF CONTROL AND AT THE MERCY OF SOUTHMARK THE SUITS WERE FILED FRIDAY IN FEDERAL COURTS IN DALLAS AND NEW YORK JUST DAYS BEFORE THE CLAIMS WOULD HAVE BEEN BARRED BY A THREEYEAR STATUTE OF LIMITATIONS FEDERAL REGULATORS TOOK CONTROL OF SAN JACINTO SAVINGS ON NOV 30 1990 AND LATER SOLD ITS DEPOSITS AND BRANCHES TO UNITED SAVINGS ASSOCIATION OF TEXAS BASED IN HOUSTON AT THE TIME OF THE SALE REGULATORS SAID THAT RESOLVING THE SAN JACINTO FAILURE WOULD COST THE RTC ABOUT 142 BILLION BEFORE THE THRIFT'S DEMISE SAN JACINTO AND SOUTHMARK WERE AMONG THE PLAYERS IN A FINANCING RING THAT INCLUDED DREXEL BURNHAM LAMBERT INC FORMER DREXEL JUNKBOND KING MICHAEL MILKEN LINCOLN SAVINGS & LOAN ASSOCIATION AND ITS CHAIRMAN CHARLES KEATING JR FEDERAL REGULATORS PREVIOUSLY HAVE CHARGED THAT PARTICIPANTS IN THE RING INVESTED IN ONE ANOTHER'S PROJECTS AND HELPED ONE ANOTHER REFINANCE AILING VENTURES POSTPONING THEIR FAILURES AND ESCALATING TAXPAYER LOSSES AT THE THRIFTS THE RTC IN THE SUITS FILED FRIDAY ALLEGED THAT SAN JACINTO'S AUDITORS AND FORMER DIRECTORS COULD HAVE STOPPED THE THRIFT'S BAD LENDING PRACTICES WHICH WERE HEADED FOR A TIME BY MR PHILLIPS GRANT THORNTON REPRESENTATIVES COULDN'T BE REACHED FOR COMMENT THE RTC IS SEEKING 280 MILLION IN DAMAGES FROM GRANT THORNTON AND MR PHILLIPS AND A TOTAL OF 66 MILLION IN DAMAGES FROM THE FORMER DIRECTORS AND MR PHILLIPS MR PHILLIPS WHO LEFT SOUTHMARK IN 1989 COULDN'T BE LOCATED FOR COMMENT FOUR SPECIFIC LOANS THE SUIT AGAINST AKIN GUMP CITES FOUR SPECIFIC LOANS INCLUDING THREE TO A BORROWER WITH TIES TO A SOUTHMARK OFFICIAL ANOTHER LOAN WAS USED TO BUY 113000 ACRES OF LAND IN TENNESSEE KENTUCKY AND WEST VIRGINIA ABOUT HALF OF WHICH WAS UNUSABLE BECAUSE OF A COAL LEASE HELD BY THE US GOVERNMENT THE RTC ALLEGES THAT AKIN GUMP SHOULD HAVE RECOGNIZED PROBLEMS WITH THE LOANS AKIN GUMP'S LAWYER ROBERT G NEWMAN OF SAN ANTONIO DIDN'T RETURN CALLS FOR COMMENT THE RTC SUITS AGAINST GRANT THORNTON AND AKIN GUMP ASK THAT THE FIRMS' INDIVIDUAL PARTNERS BOTH CURRENT AND FORMER BE HELD LIABLE FOR THE ALLEGED DAMAGES IN PREVIOUS SUITS THE RTC HAS SUED DEPARTED PARTNERS OF LAW FIRMS TO COLLECT FROM THE MALPRACTICELIABILITY INSURANCE OF THEIR NEW FIRMS IN THE CASE AGAINST AKIN GUMP THE RTC NAMES A FORMER PARTNER WHO IS NOW WITH HOPKINS & SUTTER THE CHICAGO LAW FIRM THAT HAS RECEIVED MORE MONEY THAN ANY OTHER IN THE US FOR PURSUING CLAIMS ON BEHALF OF FAILED THRIFTS AKIN GUMP HAS ALSO COLLECTED MONEY FOR REPRESENTING THE GOVERNMENT IN CASES RELATED TO FAILED BANKS AND THRIFTS BUT THAT WORK HAS DRIED UP IN 1990 THE FEDERAL DEPOSIT INSURANCE CORP BARRED THE FIRM FROM RECEIVING ANY MORE GOVERNMENT CONTRACTS BECAUSE OF THE PERSONAL BANKRUPTCY FILING OF THE FIRM'S LEAD BANKING SPECIALIST BANKRUPTCYCOURT FILINGS REVEALED THAT THE PARTNER COULDN'T REPAY LOANS THAT HE OBTAINED TO INVEST IN THRIFTS ALONG WITH CLIENTS HE ADVISED EARLY LAST YEAR THE FDIC REFUSED TO GRANT AKIN GUMP A WAIVER TO RESUME GOVERNMENT WORK BECAUSE THE FIRM WAS REPRESENTING ARIZONA GOV FIFE SYMINGTON IN A SUIT AGAINST HIM AND OTHER DIRECTORS AND OFFICERS OF FAILED SOUTHWEST SAVINGS & LOAN ASSOCIATION OF PHOENIX 9311290121 931129 WHAT'S NEWS WORLDWIDE THE EC WILL TRY TO REVIVE BOSNIA PEACE TALKS TODAY BUT PROSPECTS ARE DIM ON THE TABLE IS EXPECTED TO BE AN OFFER TO LIFT SANCTIONS AGAINST YUGOSLAVIA IF BELGRADE PRESSES BOSNIAN SERBS TO GIVE BACK MORE CAPTURED TERRITORY TO BOSNIA'S MUSLIMLED GOVERNMENT BUT KARADZIC THE BOSNIAN SERB LEADER SAID BEFORE LEAVING FOR THE TALKS THAT HE WOULD NOT YIELD ANY LAND MEANWHILE BOSNIAN PRESIDENT IZETBEGOVIC SAID SANCTIONS AGAINST YUGOSLAVIA SHOULD BE TIGHTENED IF NO PROGRESS IS MADE ADDING THAT SANCTIONS AGAINST CROATIA SHOULD BE CONSIDERED SERBS FIRED A MORTAR SHELL INTO CENTRAL SARAJEVO KILLING FIVE MEANWHILE THE FIRST SHIPMENT OF FUEL FOR CIVILIANS SINCE AUGUST ARRIVED IN THE BOSNIAN CAPITAL PLO LEADER ARAFAT SAID THE SUCCESS OF THE ISRAELPLO PEACE ACCORD DEPENDS ON ISRAEL BEGINNING ITS WITHDRAWAL FROM THE GAZA STRIP AND THE WEST BANK TOWN OF JERICHO DEC 13 AS WAS AGREED ISRAELI PRIME MINISTER RABIN SAID LAST WEEK THAT CONTINUED TURMOIL IN THE OCCUPIED TERRITORIES MAY RESULT IN A SHORT POSTPONEMENT OF THE WITHDRAWAL NEW JERSEY DEMOCRATS ARE DROPPING A LAWSUIT SEEKING TO OVERTURN THE RECENT REPUBLICAN GUBERNATORIAL VICTORY AN ATTORNEY FOR THE STATE DEMOCRATIC ORGANIZATION SAID THE SUIT COULD BE REVIVED IF STATE AND LOCAL INVESTIGATIONS TURN UP EVIDENCE THAT THE WHITMAN CAMPAIGN WORKED TO SUPPRESS THE BLACK VOTE THE BRITISH GOVERNMENT ADMITTED THAT DESPITE ITS PERSISTENT DENIALS IT HAS HAD SECRET CONTACTS WITH THE IRA THE REVELATION BROUGHT CALLS FOR PRIME MINISTER MAJOR'S RESIGNATION BY PROTESTANT MEMBERS OF PARLIAMENT FROM NORTHERN IRELAND MAJOR SAID HOWEVER IT WOULD HAVE BEEN IRRESPONSIBLE NOT TO RESPOND TO PEACE OVERTURES MEXICO'S RULING PARTY NAMED LUIS DONALDO COLOSIO THE MINISTER FOR SOCIAL DEVELOPMENT AS ITS CANDIDATE FOR PRESIDENT IN 1994 INSTITUTIONAL REVOLUTIONARY PARTY CANDIDATES HAVE BEEN VIRTUAL SHOOINS SINCE 1929 THE NOMINATION SIGNALS PRESIDENT SALINAS'S DECISION TO FOCUS ON MEXICO'S VAST SOCIAL INEQUITIES THE ADMINISTRATION IS CONSIDERING GIVING GOVERNMENT SUBSIDIES TO EMPLOYERS WHO HIRE WELFARE RECIPIENTS AND PUTTING OTHERS INTO COMMUNITY SERVICE WORK THE PROPOSALS ARE AMONG OPTIONS BEING WEIGHED BY A TASK FORCE THAT IS TO PRESENT ITS FINDINGS NEXT MONTH TO CLINTON WHO PROMISED WELFARE REFORM IN HIS CAMPAIGN SOMALI CLAN LEADER AIDID SAID HE WOULD BOYCOTT A HUMANITARIAN AID CONFERENCE SET TO BEGIN IN ETHIOPIA TODAY BECAUSE UN FORCES WON'T RELEASE THREE AIDES WHO WERE CAPTURED DURING A RECENT USLED HUNT FOR HIM UN OFFICIALS SAID IT WAS HOPED THE CONFERENCE WOULD PROVIDE A FORUM TO PROMOTE RECONCILIATION AMONG WARRING SOMALI FACTIONS EARLY INDIAN ELECTION RESULTS INDICATED A DECLINE IN POPULARITY FOR THE BHARATIYA JANATA PARTY WHICH ATTAINED SUBSTANTIAL POWER BY CHAMPIONING HINDU EXTREMISM PARTIAL RESULTS IN LOCAL GOVERNMENT RACES IN FOUR STATES AND NEW DELHI SHOW THE PARTY MAY LOSE CONTROL IN UTTAR PRADESH CONSIDERED A BELLWETHER FOR NATIONAL POLITICS EGYPT HAS FORBIDDEN NEWSPAPERS TO CONDUCT INTERVIEWS WITH MUSLIM FUNDAMENTALISTS FOLLOWING AN ATTEMPT LAST WEEK TO ASSASSINATE THE PRIME MINISTER IN A CAR BOMBING THAT KILLED ONE PERSON AND WOUNDED 20 THE BAN WAS ANNOUNCED YESTERDAY BY THE INTERIOR MINISTER WHO WAS INJURED IN AN ASSASSINATION ATTEMPT IN AUGUST BRITAIN AND CHINA RECESSED TALKS ON HONG KONG WITHOUT SETTING A DATE FOR ANOTHER ROUND A SIGNAL THE TWO SIDES ARE BEGINNING TO ESCALATE THEIR YEAROLD CONFLICT OVER POLITICAL REFORM EFFORTS IN ADVANCE OF THE COLONY'S RETURN TO CHINESE RULE IN 1997 THE ENDING OF THE TALKS SATURDAY THREATENED TO ROIL HONG KONG MARKETS IRAQI AND UN OFFICIALS ARE TO BEGIN THIS WEEK TO PLAN LONGTERM MONITORING OF BAGHDAD'S WEAPONS PROGRAM FOLLOWING AN ACCORD REACHED FRIDAY BUT BAGHDAD SAID A UN DECISION NOT TO QUICKLY LIFT ITS EMBARGO ON OIL SALES IMPOSED AFTER IRAQ'S 1990 INVASION OF KUWAIT WAS UNFAIR DEPUTY PREMIER AZIZ BLAMED US INFLUENCE FOR THE DECISION NORTH KOREA IS TO RETURN THE BODIES OF 33 US SOLDIERS KILLED IN THE KOREAN WAR TOMORROW AND PYONGYANG SAID MORE WOULD BE RETURNED IN DECEMBER NORTH KOREA MADE THE OFFER FRIDAY IN AN ATTEMPT TO IMPROVE DETERIORATING RELATIONS WITH THE US 9311290120 931129 INTERNATIONAL JAPANESE RETAIL SALES FALL TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN OCTOBER WERE DOWN 36 TO 1774 TRILLION YEN 1629 BILLION FROM A YEAR EARLIER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REPORTED THE DROP STRETCHED THE STRING OF YEARTOYEAR DECLINES IN RETAIL SALES TO 17 MONTHS CLOTHING SALES WERE DOWN 51 FROM THE SHOWING IN OCTOBER 1992 PERSONAL CONSUMPTION ACCOUNTS FOR NEARLY 60 OF JAPAN'S GROSS NATIONAL PRODUCT 9311290119 931129 BRITAIN'S NEW BUDGET IS DUE TOMORROW AND PUNDITS SEE TAX HIKES DEFICIT CUTS BY NICHOLAS BRAY AND GLENN WHITNEY STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON BRITAIN'S CHANCELLOR OF THE EXCHEQUER IS SCHEDULED TO UNVEIL TOMORROW HIS 199495 BUDGET BRINGING TO AN END A PERIOD IN WHICH ANYONE AND EVERYONE WITH AN OPINION IT SEEMS HAS OFFERED IT SUGGESTIONS AND ADMONITIONS FOR THE CHANCELLOR KENNETH CLARKE HAVE FLOWED FROM ALL QUARTERS POLITICAL ALLIES OPPONENTS INVESTMENT ANALYSTS BUSINESSMEN THE MEDIA ACADEMICS HOWEVER MUCH OF THE TALK INVOLVED SPECIAL PLEAS FROM THE PUBLISHING INDUSTRY FOR EXAMPLE WHICH SOUGHT TO AVOID A VALUEADDED TAX ON BOOKS AND THE CONSTRUCTION INDUSTRY WHICH WANTED TO PRESERVE TAX BREAKS ON MORTGAGE INTEREST PAYMENTS THE CHANCELLOR HAS BEEN TOLD NOT TO RAISE TAXES BECAUSE OF THE DAMAGE IT WOULD DO TO BRITAIN'S FRAGILE ECONOMIC RECOVERY ON THE CONTRARY SAY OTHERS HE SHOULD RAISE TAXES BECAUSE OF THE OVERWHELMING NEED TO CUT BRITAIN'S 50 BILLION 744 BILLION PUBLICSECTOR DEFICIT THE BUDGET WILL BE THE FIRST MAJOR PACKAGE OF ECONOMIC MEASURES FROM MR CLARKE WHO TOOK THE POSITION IN MAY AS OF NOW BUDGET WATCHERS PREDICT A TAX INCREASE RANGING FROM 15 BILLION 223 BILLION TO 3 BILLION ON TOP OF A 675 BILLION PACKAGE ALREADY SLATED TO TAKE EFFECT IN APRIL SPENDING CUTS MEANWHILE MIGHT BE LESS DRASTIC THAN MANY FEARED MR CLARKE MAY WELL END TAX RELIEF ON MORTGAGE INTEREST HE SEEMS MORE THAN LIKELY TO CUT THE VALUE OF PERSONAL INCOMETAX ALLOWANCES BY LIMITING THEM TO THE 20 TAX RATE INSTEAD OF TO INDIVIDUALS' TOP MARGINAL TAX RATES AS AT PRESENT THOSE TWO MEASURES WOULD RAISE 9 BILLION ENOUGH TO REDUCE THE DEFICIT TO SUSTAINABLE LEVELS SAYS PATRICK FOLEY CHIEF ECONOMIC ADVISER AT LLOYDS BANK TAKING A HINT FROM HIS PREDECESSOR NORMAN LAMONT WHO GAVE HIS RECOMMENDATIONS LAST WEEK IN AN ARTICLE IN THE TIMES OF LONDON HE MIGHT CUT THE CAPITALGAINS TAX TO 20 OR LESS PRESENTLY IT IS PEGGED TO INDIVIDUALS' TOP MARGINAL TAX RATES TO PAY FOR SUCH A MOVE HE MIGHT INCREASE THE TAX BURDEN ON PENSION FUNDS AND PRIVATE PENSION ARRANGEMENTS A PROSPECT THAT INSPIRED GLOOM IN THE STOCK MARKET EARLIER THIS MONTH BUT THE REAL QUESTION IS WHETHER MR CLARKE CAN CARRY HIS POLITICAL INGENUITY FAR ENOUGH TO INSTILL NEW DRIVE INTO PRIME MINISTER JOHN MAJOR'S FLAGGING TORY GOVERNMENT AND THE BRITISH ECONOMY THAT'S AN ISSUE NOT ONLY FOR BRITAIN BUT FOR THE REST OF EUROPE AS WELL BRITAIN'S ECONOMY IS GROWING AT AN ANNUAL RATE OF 2 WHILE MOST EUROPEAN ECONOMIES ARE CONTRACTING BY 1 TO 2 WITH CAREFUL GUIDANCE FROM MR CLARKE BRITAIN HAS AN OPPORTUNITY TO SERVE NOT AS THE LOCOMOTIVE OF EUROPE MAYBE BUT AT LEAST AS THE ONE TO STOKE THE COALS IN THE ENGINE MEANWHILE SOME ECONOMISTS THINK MR CLARKE MIGHT SPRING SOME SURPRISES BOB SEMPLE HEAD OF ECONOMICS AND STRATEGY AT NATWEST MARKETS PREDICTS THE PACKAGE OF TAX CUTS AND INCREASES MAY BE THE DIFFERENCE BETWEEN TWO QUITE BIG NUMBERS HE MAY GIVE SIX BILLION WITH ONE HAND AND PULL AWAY NINE WITH THE OTHER BY PAVING THE WAY FOR LOWER BASIC INCOMETAX RATES EVEN THOUGH OFFSET BY HIGHER TAXES ELSEWHERE SUCH A MOVE COULD SERVE TWO PURPOSES IT WOULD BOOST CONSUMER CONFIDENCE AND ALSO REVIVE SUPPORT FOR THE PRIME MINISTER AMONG CONSERVATIVE PARTY BACKBENCHERS IN THE HOUSE OF COMMONS CERTAINLY MR CLARKE HAS A KNACK FOR THE UNEXPECTED RECENTLY WHEN THE TREASURY AND THE BANK OF ENGLAND CAUGHT FINANCIAL MARKETS UNAWARES WITH A HALFPOINT CUT IN LENDING RATES HE WAS ALTERNATELY PRAISED FOR LEADING THE MARKETS AND CRITICIZED FOR NOT GOING FAR ENOUGH IN AN EDITORIAL ATTACKING THE RATE CUT AS TOO LITTLE TOO SOON THE TIMES SAID THE ACTION HAS ALL THE APPEARANCE OF BEING MISJUDGED IN ITS MAGNITUDE ITS TIMING AND ITS POLITICAL IMPLICATIONS SO WHAT SHOULD MR CLARKE DO IN HIS BUDGET RAISE PERSONAL TAXES ON INCOME BY 3 BILLION BY INCREASING THE BURDEN OF INCOME TAX FOR HIGHERRATE PAYERS SAYS OXFORD ECONOMIC FORECASTING A COMMERCIAL FORECASTING FIRM THOUGH UNPLEASANT FOR MIDDLE AND HIGHERINCOME GROUPS SUCH MEDICINE IS NEEDED TO CUT A PUBLICSECTOR DEFICIT LIKELY OTHERWISE TO STAY AROUND 40 BILLION FOR THE NEXT THREE YEARS THE FIRM SAYS ON THE CONTRARY SAYS ANDREW BRITTON OF THE NATIONAL INSTITUTE OF ECONOMIC AND SOCIAL RESEARCH AN INDEPENDENT THINK TANK WE ALREADY HAVE SUBSTANTIAL TAX INCREASES IN THE PIPELINE AND THE RECOVERY IN OUTPUT WILL GENERATE MORE REVENUE IT WOULD BE A SHAME TO RAISE TAXES FURTHER AND CHOKE OFF THE RECOVERY THE INFLUENTIAL CONFEDERATION OF BRITISH INDUSTRY AGREES SAYING A TAX INCREASE WOULD SEND THE COUNTRY INTO UNCHARTED WATERS AND JEOPARDIZE THE RECOVERY SOME ANALYSTS THEN STAKE OUT A MIDDLE GROUND MR CLARKE SHOULD OPT FOR A QUIET' BUDGET FOCUSING ON MARGINAL CHANGES IN THE TREATMENT OF PERSONAL INCOME TAX ALLOWANCES VALUEADDED TAX ON PUBLISHING AND SO FORTH SAYS MORGAN STANLEY & CO ECONOMIST BRIAN V MULLANEY RAISE SOME TAXES MAYBE BUT STEER CLEAR OF POLITICALLY SENSITIVE TAX CHARGES AND PERHAPS CONSIDER SOME TAX RELIEF FOR THE LOWER INCOME GROUPS HE SUGGESTS IN A NOTE TO INVESTORS ENTITLED IF I WERE CHANCELLOR FINANCIAL MARKETS FOR THE MOST PART ARE EXPECTING THE MIDDLEGROUND APPROACH AND HAVE ALREADY PRICED IN A MODEST TAX INCREASE STEPHEN LEWIS HEAD OF RESEARCH AT THE LONDON BOND BROKING CO SAYS MR CLARKE'S MESSAGE IS LIKELY TO BE POLITICALLY UNPALATABLE BUT SHOULD HELP ALLAY THE CONCERN OVER THE BUDGET DEFICIT HE RECOMMENDS BUYING GOVERNMENT BONDS AHEAD OF TOMORROW'S PRESENTATION OF THE BUDGET AFTERWARD ANALYSTS ARE ANTICIPATING POSTBUDGET PROFIT TAKING IF THE BUDGET MERELY MATCHES EXPECTATIONS THE TEMPTATION TO SELL BEFORE YEAREND WILL BE REINFORCED PREDICTS PETER FELLNER A STRATEGIST AT NATWEST MARKETS SOME IN THE MARKETS ARE CONCERNED THE BUDGET WILL SQUEEZE GROWTH AND CORPORATE PROFIT HOWEVER IAN HARNETT CHIEF ECONOMIST AT SOCIETE GENERAL STRAUSS TURNBULL SECURITIES LTD SAYS THAT'S UNLIKELY GIVEN MR CLARKE'S PROMISE EARLIER THIS FALL TO STRENGTHEN THE RECOVERY IN ORDER TO WIN NEXT YEAR'S ELECTIONS 9311290118 931129 SPIT TESTING MAY BE HARD TO SWALLOW IN THE WORKPLACE PSYCHOLOGIST COLLECTS SAMPLES SEEING TESTOSTERONE LEVELS AS A CLUE TO PERSONALITY BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA THE ROMANS BELIEVED THAT HUMAN SALIVA HAS MYSTICAL PROPERTIES INDEED LEGEND HAD IT THAT ANY MAN COULD SLAY A SERPENT BY SPITTING INTO ITS THROAT NOW THAT'S THE KIND OF GUY JAMES M DABBS JR WOULD LIKE TO MEET DR DABBS A PSYCHOLOGY PROFESSOR AT GEORGIA STATE UNIVERSITY HERE IS MAKING HIS CAREER IN SPIT HE HAS COLLECTED SOME 2500 SALIVA SAMPLES FROM MURDERERS MINISTERS LAWYERS FARMERS THE RICH AND THE POOR MEN AND WOMEN AND THEN MEASURED TESTOSTERONE LEVELS IN THE SPECIMENS HE IS INTERESTED IN EXACTLY HOW ABNORMALLY HIGH LEVELS OF THE HORMONE AFFECT HUMAN BEHAVIOR PHYSIOLOGICALLY THE MALE SEX HORMONE IS ASSOCIATED WITH BIGGER MUSCLES DEEPER VOICES AND BALDNESS ITS EFFECTS ON HOW PEOPLE ACT ON COMPETITIVENESS CRIMINALITY AND SUCH ARE MATTERS OF RATHER MORE CONTROVERSY THE REASON FOR A SPIT TEST IS THAT IT IS EASILY ADMINISTERED MUCH SIMPLER THAN A BLOOD TEST REQUIRING NEEDLES AND COULD EVEN BE DONE ON YOU BY YOUR BOSS IN THE OFFICE MUCH AS POLYGRAPHS AND PERSONALITY TESTS FOR BETTER OR WORSE ARE USED IN THE WORKPLACE I'M ON THE CUTTING EDGE OF SPIT DR DABBS SAYS DR DABBS'S RESEARCH UNSAVORY AS IT MIGHT SEEM APPEALS TO THE NATIONAL SCIENCE FOUNDATION WHICH PROVIDES ABOUT 50000 A YEAR FOR HIS WORK IT'S THE ENVY OF TWO DOZEN OTHER RESEARCHERS IN THE SAME FIELD IF ONLY FOR THE VOLUME OF DR DABBS'S HOLDINGS THE CONTENTS OF 2500 LITTLE PLASTIC CUPS TO WHICH VOLUNTEERS WERE ASKED TO CONTRIBUTE BY STUDENTS OF HIS WHO KNOCK ON DOORS AND STOP PEOPLE ON THE STREET ASKING THEM TO SPIT IT'S AMAZING HOW MANY PEOPLE DON'T TURN US DOWN SAYS JASMIN RIAD A GEORGIA STATE GRADUATE STUDENT SHE IS PAID A TAD MORE THAN THE MINIMUM WAGE OTHERS GET COURSE CREDIT SOME DO IT JUST FOR FUN DR DABBS SAYS THAT'S NOT TO SAY THAT COLLECTING SPITTLE IS AN EASY SUBJECT TO BROACH WITH FRIENDS AND RELATIVES WHEN DR DABBS FIRST BEGAN STUDYING SALIVA IN THE EARLY 1980S HE WOULD KEEP LITTLE VIALS OF IT IN HIS REFRIGERATOR AT HOME BUT STORING THE STUFF WITH THE FAMILY GROCERIES STRUCK HIS WIFE AS VILE INDEED THE SAMPLES SOON WERE RUSTICATED TO A FREEZER OUTSIDE HIS UNIVERSITY OFFICE DONORS WEREN'T AT ALL HARD TO COME BY NEARLY 700 INMATES AT THE LEE ARRENDALE CORRECTIONAL FACILITY IN ALTO GA WERE HAPPY TO PART WITH SOME SPUTUM SEVERAL OFFERED TO WORK AS LAB ASSISTANTS DOZENS OF UNEMPLOYED PEOPLE DID IT IN DOWNTOWN ATLANTA AT 5 A SHOT FOR A GEORGIA STATE STUDENT SUDDENLY SHE WAS SURROUNDED BY PEOPLE WHO WANTED TO SPIT SAYS DR DABBS BUT SHE HAD A LIMITED AMOUNT OF 5 BILLS SO THEY WANTED TO AUDITION IT WAS COMPETITIVE SPITTING IN ANIMAL TESTS A GROUP OF CHIMPANZEES PROVED TO BE PARTICULARLY ACCOMMODATING IT WAS MONKEY SEE MONKEY DO SAYS DR DABBS WE WOULD SPIT IN A CUP THEN THEY WOULD SPIT IN A CUP THE PROCESS FOR COLLECTING AND TREATING SAMPLES IS PRETTY STRAIGHTFORWARD FIRST VOLUNTEERS ARE ASKED TO CHEW GUM TO ENCOURAGE SALIVATION THE GLANDULAR SECRETION OF THE THIN VISCOUS FLUID THAT AIDS IN SWALLOWING AND DIGESTION WE SAY PLEASE DON'T SPIT THE GUM IN THE VIAL BECAUSE THEN WE HAVE TO FISH IT OUT MS RIAD SAYS THE FLUID TESTED FOR TESTOSTERONE LEVELS IN A LAB SHOWS PRONOUNCED DIFFERENCES IN MEN AND WOMEN IN MINISTERS AND PRISON INMATES IN WOMEN RELATIVELY SMALL AMOUNTS OF TESTOSTERONE ARE PRODUCED BY THE OVARIES AND ADRENAL GLANDS IN MEN THE HORMONE IS PRODUCED BY THE TESTES THE AVERAGE WOMAN HAS A TESTOSTERONE LEVEL OF ABOUT ONE TO TWO NANOGRAMS PER DECILITER OF SALIVA WHILE MOST MEN FALL IN THE EIGHT TO 10 NANOGRAM RANGE A NANOGRAM IS A BILLIONTH OF A GRAM WHILE A DECILITER EQUALS ABOUT HALF A CUP ACCORDING TO DR DABBS A VIOLENT FEMALE PRISONER TYPICALLY SHOWS A SLIGHTLY ELEVATED TESTOSTERONE READING ABOUT A THREE OR FOUR WHILE A VIOLENT MAN USUALLY EXHIBITS A SUBSTANTIAL INCREASE OVER THE AVERAGE A 17 OR MORE MINISTERS TYPICALLY FALL IN THE FIVE TO SIX RANGE SO WHO HAS GOT ALL THE TESTOSTERONE DR DABBS'S RESEARCHERS HAVE FOUND HIGH LEVELS OF THE HORMONE IN AMONG OTHERS ATTORNEYS PRISONERS COLDCALL SALESPEOPLE AND THE UNEMPLOYED ON THE LOW END OF THE SCALE ARE MINISTERS FARMERS AND MOST WHITECOLLAR MANAGERS DR DABBS WHO GOT HIS DOCTORATE FROM YALE IN 1962 HAS WRITTEN ABOUT 20 SCHOLARLY PAPERS ON TESTOSTERONE AND IS HIGHLY REGARDED IN THE FIELD DOESN'T MAKE WILD CLAIMS THAT TESTOSTERONE CAUSES CERTAIN MEN TO COMMIT CRIMES THE CAUSATION OF BEHAVIOR IS VERY HARD TO PIN ON A HORMONE FOUND IN ALL MEN DR DABBS MERELY LOOKS AT CORRELATIONS AND MEANINGS AREN'T ALWAYS CLEAR THE HARDESTCHARGING EXECUTIVES OFTEN EXHIBIT ONLY AVERAGE OR LOW LEVELS OF TESTOSTERONE DR DABBS REMARKS BUT DR DABBS AND HIS ASSOCIATES HAVE OBSERVED AN APPARENT LINK BETWEEN ELEVATED TESTOSTERONE AND ACTS OF VIOLENCE AND DESPITE THAT SOME PEOPLE SEEM TO BE PROUD OF A HIGH TESTOSTERONE SCORE ATLANTA ATTORNEY MARY THOMPSON HEARD ABOUT DR DABBS'S WORK AND INVITED HIM TO HER LAW PRACTICE TO MEASURE THE STAFF MS THOMPSON WHO SAYS SHE IS CAPABLE OF YELLING POUNDING AND JUMPING UP AND DOWN AT BREAKFAST SUSPECTED SHE WAS HIGH IN TESTOSTERONE AND SHE WAS RIGHT BUT SHE ISN'T JUMPING TO CONCLUSIONS I DON'T KNOW WHAT IT REALLY PROVES SHE SAYS THOSE SENTIMENTS ARE SHARED BY SOME SCIENTISTS WE'RE LIKE DETECTIVES SAYS BRIAN GLADUE A SENIOR SCIENTIST AT THE AMERICAN PSYCHOLOGICAL ASSOCIATION WE DON'T WANT TO MAKE A CONVICTION SAYS DR GLADUE UNTIL ALL THE EVIDENCE IS ON THE TABLE CORRELATIONS ARE CLUES BUT THEY'RE NOT THE CASE YOU CAN MAKE A CASE FOR ANY TYPE OF BEHAVIOR AND MEN AND YOU CAN MAKE THE CASE THAT MEN HAVE A LOT OF TESTOSTERONE THE IDEA OF SPIT TESTS MOREOVER MIGHT BE AS HARD FOR EMPLOYERS TO STOMACH AS IT IS FOR JOB APPLICANTS TO SWALLOW SOME EUROPEAN COMPANIES STILL GIVE CONSIDERABLE WEIGHT TO HANDWRITING ANALYSIS IN FILLING JOBS AND THAT IS CONSIDERED NONSENSE ELSEWHERE SPIT TESTING WOULD PROBABLY BE JUST AS CONTROVERSIAL EVEN DR DABBS THINKS THERE'S SOMETHING UNAMERICAN IN SEARCHING FOR PERSONALITY CLUES IN HORMONES STILL THE 55YEAROLD SCIENTIST SAYS HE WON'T QUIT UNTIL HE UNDERSTANDS PRECISELY HOW TESTOSTERONE AFFECTS HUMAN BEHAVIOR A FIELD OF RESEARCH WITH ENOUGH SEX APPEAL TO ATTRACT FOUNDATION GRANTS I'M GUIDED TO SOME EXTENT BY WHERE THE MONEY IS DR DABBS CONCEDES 9311290117 931129 TECHNOLOGY CRAY RESEARCH GETS BAYER SALE EAGAN MINN CRAY RESEARCH INC SAID BAYER AG ORDERED A SUPERCOMPUTER TO BE INSTALLED IN ITS LEVERKUSEN GERMANY RESEARCH FACILITY IN THE FIRST QUARTER TERMS WEREN'T DISCLOSED CRAY RESEARCH SAID THE CHEMICAL COMPANY PLANS TO USE THE SYSTEM TO SOLVE COMPUTATIONALLY INTENSIVE PROBLEMS IN PROCESS SIMULATION THE SYSTEM IS A TWOPROCESSOR AIRCOOLED CRAY C92A WITH A LARGE RANDOMACCESS MEMORY ACCORDING TO CRAY RESEARCH WHICH MAKES SUPERCOMPUTERS 9311290116 931129 CANADA'S SEPTEMBER CREDIT GREW OTTAWA CANADIAN BUSINESS AND HOUSEHOLD CREDIT ROSE 03 IN SEPTEMBER FOLLOWING INCREASES OF 06 IN AUGUST AND 04 IN JULY ACCORDING TO BANK OF CANADA WEEKLY STATISTICS BUSINESS AND HOUSEHOLD CREDIT TOTALED A SEASONALLY ADJUSTED 8976 BILLION CANADIAN DOLLARS US6758 BILLION IN SEPTEMBER UP FROM AUGUST'S REVISED C89492 BILLION THE FIGURE IS CALCULATED FROM HOUSEHOLD CREDIT WHICH INCLUDES CONSUMER CREDIT AND RESIDENTIAL MORTGAGE CREDIT AND BUSINESS CREDIT 9311290115 931129 KLM PRESIDENT ADVISES AIRLINES ON REVAMPING STRATEGY SHOULD EMPHASIZE PROFIT PRINCIPLES INSTEAD OF GOVERNMENT HELP SPECIAL TO THE WALL STREET JOURNAL MAASTRICHT NETHERLANDS THE AIRLINE INDUSTRY NEEDS TO RESTRUCTURE ACCORDING TO PRINCIPLES OF PROFITABILITY AND NOT LOOK TO GOVERNMENT PROTECTION FOR ITS EXISTENCE KLM ROYAL DUTCH AIRLINES PRESIDENT PIETER BOUW SAID FRIDAY SPEAKING AT A MEETING OF WORLD BUSINESS AND NATIONAL LEADERS ONE WEEK AFTER MERGER TALKS WITH THREE OTHER EUROPEAN CARRIERS WERE TERMINATED MR BOUW SAID MERGERS AREN'T THE PROPER WAY TO RESTRUCTURE THE EUROPEAN AND GLOBAL AIRLINE INDUSTRIES I THINK THE FIRST STEP IS FOR AIRLINES TO RESTRUCTURE THEMSELVES IN ORDER TO BE EFFECTIVE AND THEN FROM THAT POSITION THEY CAN APPROACH THE ISSUE OF MERGERS MR BOUW SAID MOREOVER HE SAID SOME AIRLINES ARE INSULATED FROM CONDITIONS OF THE MARKET BY ASSURANCE OF GOVERNMENT PROTECTION ALLOWING THEM TO TURN AWAY FROM THE PRESSURES TO FORM COOPERATIVE ARRANGEMENTS WITH OTHER CARRIERS INSTEAD HE CALLED FOR GOVERNMENTS TO BE MORE OPEN TO THE IDEA OF CROSSBORDER ACQUISITIONS A POINTED REFERENCE TO KLM'S MOVES TO STEP UP COOPERATION WITH ITS US AFFILIATE NORTHWEST AIRLINES KLM HOLDS A 20 STAKE IN NORTHWEST'S PARENT COMPANY WINGS HOLDINGS INC HE SAID AIRLINES THAT ARE SMUGLY SURE OF GOVERNMENT BACKING IN TIMES OF NEED LIKELY WOULD BE MORE OPEN TO COOPERATING WITH OTHER CARRIERS IF THAT BACKING WERE NO LONGER THERE MOREOVER HE SAID GOVERNMENTS SHOULDN'T HOLD STAKES IN AIRLINES THAT SURPASS THE LARGEST MINORITY STAKE KLM IS 382 STATEOWNED AND THE DUTCH GOVERNMENT RECENTLY SAID IT WOULD PARTICIPATE AT THAT RATE IN ANY ISSUE OF NEW SHARES BY THE AIRLINE MR BOUW POINTED TO A BROAD NEED OF EUROPEAN CARRIERS TO BRING THEIR COSTS IN LINE WITH OTHER GLOBAL CARRIERS TO MAINTAIN COMPETITIVE POSITIONS BECAUSE OF RELATIVELY HIGH LABOR COSTS IN EUROPE AIRLINES HERE TEND TO HAVE HIGHER PERSONNEL COSTS WE HAVE TO POSITION OURSELVES EFFECTIVELY ON A GLOBAL SCALE MR BOUW SAID TAKING ADVANTAGE OF WORLDWIDE OPPORTUNITIES TO MOVE OPERATIONS TO COUNTRIES WITH LOWER WAGE BASES TO IMPROVE PROFITABILITY KLM SAID IN AUGUST IT IS CONSIDERING MOVING SOME OF ITS ADMINISTRATION TO INDIA WHERE LABOR COSTS ARE LOWER WHILE CALLING FOR LIMITATIONS TO DIRECT GOVERNMENT PARTICIPATION IN AIRLINES THE KLM OFFICIAL POINTED TO THE DEPENDENCE OF CARRIERS ON THEIR GOVERNMENTS FOR THE MAINTENANCE OF INFRASTRUCTURE AT AIRPORTS WHICH ACCOUNTS FOR THE FASTESTRISING COSTS FOR CARRIERS 9311290114 931129 CANADA SAYS SALES OF ITS SAVINGS BONDS DROPPED 41 THIS YEAR OTTAWA GOVERNMENT SALES OF CANADA SAVINGS BONDS DECLINED 41 THIS YEAR TO 536 BILLION CANADIAN DOLLARS US403 BILLION FROM C915 BILLION LAST YEAR THE FEDERAL FINANCE DEPARTMENT SAID AFTER REDEMPTIONS NET PURCHASES TOTALED C842 MILLION A DECLINE OF C243 BILLION OR 74 FROM LAST YEAR'S C327 BILLION CANADA SAVINGS BONDS OFFER AN INTEREST RATE OF 425 FOR THE CURRENT YEAR BEGINNING NOV 1 THIS YEAR'S ISSUE OF BONDS WILL MATURE IN 12 YEARS THE ANNUAL INTEREST RATE FOR EACH OF THE NEXT 11 YEARS WILL BE SET ANNUALLY IN THE FALL ONLY CANADIAN RESIDENTS ARE PERMITTED TO BUY THE BONDS WHICH MAY BE REDEEMED AT ANY TIME AT FACE VALUE 9311290113 931129 HYUNDAI IN MALAYSIAN VENTURE KUALA LUMPUR MALAYSIA A NUMBER OF COMPANIES SIGNED AN AGREEMENT WITH SOUTH KOREA'S HYUNDAI MOTOR CO TO BUILD TRUCKS IN MALAYSIA PRESENTLY PASSENGER CARS ARE PRODUCED IN MALAYSIA WITH JAPANESE COLLABORATION THE 200 MILLION RINGGIT 784 MILLION PROJECT WILL BE A JOINT VENTURE INCLUDING BERJAYA GROUP LTD HYUMAL MOTOR LTD AND KOPERASI POLIS DIRAJA MALAYSIA LTD AS WELL AS HYUNDAI THE PARTICIPANTS WILL HOLD SHARES IN A COMPANY CALLED INDUSTRI OTOMOTIF KOMERSIAL MALAYSIA LTD OFFICIALS COULDN'T SAY WHEN MANUFACTURING WILL BEGIN 9311290112 931129 OIL AND GAS RIG COUNT INCREASES HOUSTON THE NATION'S OIL AND GAS RIG COUNT REGAINED SOME GROUND THIS WEEK RISING BY 14 TO 871 BAKER HUGHES INC SAID LAST WEEK THE COUNT FELL BY 15 TO 857 OF THE RIGS RUNNING THIS WEEK 465 WERE EXPLORING FOR OIL 400 FOR NATURAL GAS AND SIX WERE LISTED AS MISCELLANEOUS THE COUNT IS THE WIDELY WATCHED INDEX OF DOMESTIC DRILLING ACTIVITY AND REPRESENTS THE NUMBER OF RIGS ACTIVELY EXPLORING FOR NOT PRODUCING OIL AND NATURAL GAS BAKER HUGHES BASED IN HOUSTON HAS KEPT TRACK OF THE COUNT SINCE 1940 THE COUNT PEAKED AT 4500 IN DECEMBER 1981 DURING THE OIL BOOM 9311290111 931129 CORRECTIONS & AMPLIFICATIONS PARAMOUNT COMMUNICATIONS INC DIRECTOR IRWIN SCHLOSS' NAME WAS MISSTATED IN AN ARTICLE FRIDAY AS MARCUS SCHLOSS IRWIN SCHLOSS IS A SENIOR ADVISER TO MARCUS SCHLOSS & CO A SECURITIES BROKER SECURITY FIRST CORP INCREASED ITS QUARTERLY DIVIDEND TO FIVE CENTS A SHARE FROM FOUR CENTS A SHARE PAYABLE DEC 31 TO STOCK OF RECORD DEC 15 IT WAS INCORRECTLY LISTED AS AN INITIAL DIVIDEND IN FRIDAY'S CORPORATE DIVIDEND NEWS 9311290110 931129 ACCOR'S 9MONTH REVENUE SLID PARIS FRENCH HOTEL AND TOURISM GROUP ACCOR SA REPORTED NINEMONTH REVENUE OF 2166 BILLION FRANCS 367 BILLION DOWN 5 FROM 2279 BILLION FRANCS A YEAR EARLIER THE 1992 FIGURES ARE PROFORMA RESULTS ADJUSTED FOR COMPARABLE STRUCTURE ACCOR WHOSE HOLDINGS INCLUDE MOTEL 6 OF THE US AND TRAVEL AGENCY CIE INTERNATIONALE DE WAGONLITS ALSO REPORTED THAT THIRDQUARTER REVENUE FELL 74 TO 721 BILLION FRANCS FROM PROFORMA REVENUE OF 779 BILLION FRANCS A YEAR EARLIER FRENCH COMPANIES ARE REQUIRED BY LAW TO REPORT REVENUE 9311290109 931129 LETTERS TO THE EDITOR POWER DIVE IT WAS NOT A SKYDIVER WHO INTERRUPTED THE BOWEHOLYFIELD FIGHT AS STATED IN YOUR NOV 16 EDITORIAL LAW AND ORDER 101 JAMES MILLER WAS FLYING A POWERED VEHICLE THAT TAKES OFF FROM THE GROUND AND USES A GASOLINE ENGINE TO DRIVE A PROPELLER THE CONTRAPTION IS CLEARLY VISIBLE ON HIS BACK AS HE STRUGGLES IN THE ROPES AROUND THE RING A SKYDIVER IS A PERSON WHO JUMPS FROM AN AIRCRAFT OR A HIGH PERCH DEPLOYS A PARACHUTE IN FREEFALL AND GLIDES TO EARTH 9311290108 931129 SHINAWATRA UNIT'S STOCK OFFER BANGKOK THAILAND SHINAWATRA SATELLITE SAID IT WILL SELL 35 MILLION SHARES AT 39 BAHT 153 APIECE AND SET A SUBSCRIPTION AND PAYMENT DATE OF DEC 20 IN PREPARATION FOR ITS LISTING ON THAILAND'S STOCK EXCHANGE THE SATELLITE SUBSIDIARY OF SHINAWATRA COMPUTER & COMMUNICATIONS GROUP SAID NATIONAL FINANCE & SECURITIES AND PHATRA THANAKIT CO ARE LEAD UNDERWRITERS SHINAWATRA SATELLITE FORMED IN 1991 PLANS TO LAUNCH A THAI TELECOMMUNICATIONS SATELLITE THAICOM 1 ON DEC 17 A SECOND SATELLITE IN MID1994 AND A THIRD IN 1997 9311290107 931129 BUSINESS BRIEF LOCKHEED CORP COMPANY GETS PACT TO WORK ON AIR FORCE COMPUTER GEAR LOCKHEED CORP WON AN AIR FORCE CONTRACT TO STREAMLINE COMPUTER SYSTEMS THE CALABASAS CALIF DEFENSE CONTRACTOR SAID THE VALUE OF THE CONTRACT COULD REACH 400 MILLION OVER 10 YEARS NO FIRSTYEAR VALUE WAS ANNOUNCED SINCE THE SERVICE CAN PLACE WORK WITH LOCKHEED AT VARYING RATES UNDER THE CONTRACT THE COMPANY'S MISSILES AND SPACE UNIT WILL ASSIST IN A DEFENSE DEPARTMENT EFFORT TO IMPROVE SOFTWARE QUALITY AND PRODUCTIVITY WHILE REDUCING COST AND RISK ASSOCIATED WITH DEVELOPING COMPLEX INFORMATION SYSTEMS 9311290106 931129 BUSINESS BRIEF NORCEN ENERGY RESOURCES LTD AGREEMENT REACHED TO BUY CANADIAN PROPANE CONCERN A NORCEN ENERGY RESOURCES LTD SUBSIDIARY AGREED TO ACQUIRE A WESTERN CANADIAN PROPANE DISTRIBUTOR PREMIER PROPANE INC NORCEN'S SUPERIOR PROPANE INC UNIT SAID IT AGREED TO PAY C10 MILLION US75 MILLION FOR ALL PREMIER'S OUTSTANDING SHARES AND AN ADDITIONAL C31 MILLION TO RETIRE PREMIER'S DEBT IT SAID THE ACQUISITION IS CONDITIONAL ON REGULATORY APPROVALS AND ENVIRONMENTAL INVESTIGATIONS NORCEN A CALGARY ALBERTA OIL AND GAS PRODUCER IS 422OWNED BY TORONTO RESOURCES COMPANY NORANDA INC 9311290105 931129 BUSINESS BRIEF JOSS ENERGY LTD REMINGTON EXCHANGE RATIO IS INADEQUATE' FOR HOLDERS JOSS ENERGY LTD CALGARY SAID ITS MANAGEMENT AND ITS FINANCIAL ADVISER GOEPEL SHIELDS & PARTNERS INC THUS FAR BELIEVE THAT THE SHAREEXCHANGE RATIO PROPOSED BY REMINGTON ENERGY LTD REPRESENTS INADEQUATE CONSIDERATION FOR JOSS SHAREHOLDERS THE COMPANY ALSO SAID THERE ARE A NUMBER OF OTHER INDEPENDENT OIL COMPANIES WHICH MAY PRESENT MORE ATTRACTIVE OFFERS TO THE JOSS SHAREHOLDERS AND WHICH ARE BEING PURSUED BY THE BOARD IT DIDN'T PROVIDE FURTHER DETAILS REMINGTON HAS PROPOSED A MERGER ON THE BASIS OF 07 OF A REMINGTON SHARE FOR EACH JOSS SHARE 9311290104 931129 ACE LTD HOLDERS TO SELL SHARES HAMILTON BERMUDA ACE LTD A PROVIDER OF LIABILITY INSURANCE SAID UNNAMED SHAREHOLDERS INTEND TO SELL EIGHT MILLION SHARES IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID THE SELLING SHAREHOLDERS OWNED THEIR ACE SHARES BEFORE THE COMPANY'S INTIAL PUBLIC OFFERING EARLIER THIS YEAR AT CURRENT PRICES EIGHT MILLION SHARES WOULD BE WORTH ABOUT 225 MILLION ACE SHARES CLOSED AT 29125 DOWN 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY THE COMPANY WHICH PROVIDES LIABILITY INSURANCE TO DIRECTORS AND OFFICERS HAS A NUMBER OF MAJOR CORPORATIONS AS SHAREHOLDERS INCLUDING AMERICAN CYANAMID CO BANKAMERICA CORP BAXTER INTERNATIONAL INC MCA INC MERCK & CO FEDERATED DEPARTMENT STORES INC AND INTERNATIONAL BUSINESS MACHINES CORP 9311290103 931129 QVC VIACOM FREEZE PARAMOUNT BIDS DURING EXPECTED APPEAL OF COURT RULING BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL QVC NETWORK INC AND VIACOM INC AGREED TO FREEZE THEIR COMPETING BIDS FOR PARAMOUNT COMMUNICATIONS INC DURING AN EXPECTED TWOWEEK APPEAL OF A COURT ORDER ISSUED WEDNESDAY BLOCKING VIACOM FROM ACQUIRING PARAMOUNT THE DELAWARE SUPREME COURT WILL ANNOUNCE A DECISION TODAY ON WHETHER IT WILL HEAR THE APPEAL BY PARAMOUNT AND VIACOM OF THE CHANCERY COURT RULING BUT MANY EXPERTS BELIEVE ACCEPTANCE OF THE CASE IS A FOREGONE CONCLUSION THE COURT ALREADY HAS DESIGNATED A THREEJUDGE PANEL TO HEAR THE CASE AND SET A SCHEDULE FOR BRIEFS AND ARGUMENTS THAT CONCLUDES WITH PLANNED ORAL ARGUMENTS DEC 9 IN ADDITION TO FREEZING THEIR BIDS BOTH PARAMOUNT AND VIACOM PROMISED TO NOTIFY THE APPEALS COURT IN NONPUBLIC FILINGS IF THEY MAKE CONTINGENCY PLANS FOR ACTIONS THEY MAY TAKE AFTER THE HIGHER COURT RULES THE UNUSUAL RESTRICTIONS WOULD ALLOW THE JUDGES TO HEAR THE COMPLEX TAKEOVER CASE WITHOUT HAVING TO CONTEND WITH FASTCHANGING DEVELOPMENTS LAWYERS SAY PARAMOUNT PLANS TO STRESS TWO THEMES IN AN APPEAL BRIEF DUE AT THE COURT LATE TOMORROW ACCORDING TO ONE LEGAL EXPERT FAMILIAR WITH PARAMOUNT'S CASE THE FIRST IS THAT PARAMOUNT'S BOARD OUGHT NOT TO LOSE THE DISCRETION TO CHOOSE THE ENTERTAINMENT AND PUBLISHING COMPANY'S MERGER PARTNER SIMPLY BECAUSE ITS INTENDED ACQUIRER VIACOM HAS A CONTROLLING SHAREHOLDER IN THE PERSON OF VIACOM CHAIRMAN SUMNER REDSTONE IN RULING AGAINST PARAMOUNT'S PLANNED ACQUISITION BY CABLE GIANT VIACOM DELAWARE CHANCERY COURT JUDGE JACK JACOBS SAID THAT PARAMOUNT'S BOARD HAD AN OBLIGATION TO SEEK THE BEST DEAL FOR SHAREHOLDERS BECAUSE MR REDSTONE WOULD CONTROL 70 OF THE MERGED COMPANY'S VOTES VIACOM IS OFFERING PARAMOUNT HOLDERS 85 A SHARE IN CASH FOR 51 OF THEIR STOCK PLUS VIACOM STOCK VALUED AT 7306 A SHARE FOR THE REMAINDER THE CURRENT VALUE OF VIACOM'S OFFER IS 95 BILLION ROUGHLY 1 BILLION LESS THAN QVC'S OFFER OF 90 A SHARE IN CASH FOR 51 OF PARAMOUNT PLUS QVC STOCK VALUED AT 8410 A SHARE FOR THE REMAINDER JUDGE JACOBS SAID THIS SALE OF PARAMOUNT IS THE ONLY CHANCE FOR EXISTING SHAREHOLDERS TO RECEIVE THE HIGHEST POSSIBLE PREMIUM FOR THEIR SHARES BECAUSE MR REDSTONE COULD LATER USE HIS CONTROL OF THE COMBINED COMPANIES TO FORCE OTHER SHAREHOLDERS INCLUDING EXISTING PARAMOUNT SHAREHOLDERS TO ACCEPT CASH FOR THEIR VIACOM STOCK ON HIS TERMS BUT THE LEGAL EXPERT FAMILIAR WITH PARAMOUNT'S CASE SAID THAT JUDGE JACOBS'S RULING HAS ADOPTED A FLAT RULE THAT A MERGER INVOLVING CHANGE OF CONTROL PUTS THE COMPANY UP FOR SALE AND ABOLISHES THE ROLE OF THE BOARD OF DIRECTORS THE SAME EXPERT SAID THAT THE SECOND MAJOR THEME OF PARAMOUNT'S APPEAL WILL BE THAT JUDGE JACOBS IGNORED THE TERMS OF PARAMOUNT'S MERGER CONTRACT WITH VIACOM IN CRITICIZING PARAMOUNT FOR REFUSING TO SEEK MORE INFORMATION ABOUT QVC'S OFFER AT A PARAMOUNT BOARD MEETING NOV 15 AT THAT BOARD MEETING PARAMOUNT DIRECTORS CONCLUDED THEY COULDN'T CONSIDER QVC'S OFFER BECAUSE THE PARAMOUNTVIACOM MERGER AGREEMENT BARRED PARAMOUNT FROM CONSIDERING ANY BID THAT WAS SUBJECT TO MATERIAL FINANCING CONTINGENCIES JUDGE JACOBS SAID THAT ALL BIDS HAVE CONDITIONS IN THEM FAULTING THE PARAMOUNT BOARD FOR NOT SEEKING MORE INFORMATION ABOUT THE HOMESHOPPING COMPANY'S OFFER BUT HE DIDN'T SPECIFICALLY ADDRESS THE TERMS OF THE PARAMOUNTVIACOM AGREEMENT LIMITING SUCH CONSIDERATION WHILE NEITHER OF PARAMOUNT'S MAIN ARGUMENTS IS NEW THEY REPRESENT THE COMPANY'S EFFORT TO TILT THE FACTS OF THE CASE BACK INTO A LEGAL REALM THAT GIVES THE BOARD SOME DISCRETION TO CHOOSE A MERGER PARTNER BASED ON BUSINESS LOGIC INSTEAD OF BEING FORCED AUTOMATICALLY TO ACCEPT THE HIGHEST BID 9311290102 931129 HIGHWAY OF HYPE DESPITE MANY CLAIMS FOR 500CHANNEL TV LONG ROAD LIES AHEAD COSTS TO INDUSTRY CONSUMERS APPEAR SURE TO BE HIGH AND WILL PEOPLE WANT IT TESTS SHOW LIMITED INTEREST BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL LITTLETON COLO TELEVISION VIEWERS IN THIS LEAFY DENVER SUBURB ARE GETTING A SNEAK PREVIEW OF THE MUCHVAUNTED 500CHANNEL FUTURE HERE TELECOMMUNICATIONS INC U S WEST INC AND AMERICAN TELEPHONE & TELEGRAPH CO ARE TRYING TO GAUGE THE MARKET FOR WHAT WILL PROBABLY BE ONE OF THE MOST SALABLE FEATURES OF INTERACTIVE TV MOVIES ON DEMAND OR VIRTUALLY ANY MOVIE AT ANY TIME AVAILABLE WITH A FEW CLICKS OF A REMOTE CONTROL THE EXPERIMENT IS A CRUDE VERSION OF THE MARVELS OF INTERACTIVITY BEING TOUTED FOR THE 21ST CENTURY WHEN A VIEWER ORDERS A MOVIE A BEEPER AT TEST HEADQUARTERS ALERTS AN EMPLOYEE TO PLUNK A VIDEOTAPE IN ONE OF SCORES OF VCRS LINING THE WALLS HIGHTECH IT'S NOT BUT THE LITTLETON TEST DOES FILL A VOID FOR DESPITE THE MEGABILLIONS THAT CABLE TV AND TELEPHONE COMPANIES ARE WAGERING ON THE COMING INFORMATION SUPERHIGHWAY THIS TRIAL IS ONE OF THE FIRST ATTEMPTS TO DETERMINE WHETHER VIEWERS WILL GO ALONG FOR THE RIDE TCI AND ITS PARTNERS RECENTLY ANNOUNCED HIGH DEMAND AND USAGE IN THE 320 HOMES IN THE TEST WHICH BEGAN IN JULY 1992 AND WILL RUN A FEW MORE MONTHS ALTHOUGH THE COMPANIES DECLINE TO IDENTIFY TEST SUBJECTS A TESTSITE MANAGER SAYS HE IS VERY PLEASED WITH RESULTS BUT KNOCKING ON DOORS IN THE TEST NEIGHBORHOOD OF NEAT FRAME HOUSES TURNS UP SOME SOUR NOTES AMID GENERAL PRAISE FOR THE SERVICE'S CONVENIENCE THE TEST CUSTOMERS AREN'T CHARGED A MONTHLY FEE OR INSTALLATION COSTS THEY PAY ONLY THE PRICE OF A MOVIE RANGING FROM 99 CENTS TO 399 NEVERTHELESS HIGHSCHOOL TEACHER PENNY CROUSE BUYS ONLY TWO MOVIES A MONTH FROM THE SERVICE WE SIMPLY DON'T HAVE TIME TO WATCH TV SHE SAYS THE HOMEWORK I BRING HOME IS PHENOMENAL I'VE BEEN READING SINCE I GOT HOME AND I'LL WORK UNTIL 10 TONIGHT KAREN LUMPKIN WHO BUYS TWO OR THREE MOVIES A MONTH SAYS SHE IS TOO OVERLOADED WITH HOME TECHNOLOGY TO MAKE MORE USE OF INTERACTIVE TV WITH THE TELEPHONE PERSONAL COMPUTER AND FAX MACHINE SHE USES TO RUN HER ANTIQUES BUSINESS BY DAY'S END SHE SAYS SHE DOESN'T WANT TO PUSH ANOTHER BUTTON WHEN I WATCH TV I DON'T WANT TO DO ANYTHING BUT WATCH SHE SAYS VIEWERS' VOICES HAVE BEEN LOST IN THE HYPE OVER INTERACTIVE MEDIA SOME OF CORPORATE AMERICA'S MOST SAGACIOUS CHIEF EXECUTIVES INCLUDING TCI'S JOHN MALONE BELL ATLANTIC CORP'S RAYMOND W SMITH AND MICROSOFT CORP'S WILLIAM GATES III ARE CONVINCED THAT THEY NEED ONLY BUILD AND THE PEOPLE WILL COME AND THE CABLE INDUSTRY TERMS ANY NAYSAYING PREMATURE I GUESS WE COULD ALL THROW UP OUR HANDS AND SAY THERE'S RISK HERE WE CAN'T PROCEED' SAYS ROBERT THOMSON A TCI SENIOR VICE PRESIDENT OF COURSE THERE'S RISK BUT VIEWERS' RESERVATIONS ARE JUST ONE OF THE OBSTACLES TO BE RECKONED WITH BEFORE THE INFORMATION HIGHWAY IS UP AND RUNNING SUCH A SYSTEM WILL TAKE FAR LONGER AND COST FAR MORE THAN THE PUBLIC GENERALLY REALIZES A STAGGERING HARDWARE BUILDUP WILL BE NEEDED TO DELIVER A WIDE ASSORTMENT OF INTERACTIVE SERVICES INTO LIVING ROOMS THE COST OF BLANKETING THE NATION WITH FIBEROPTIC CABLE AND STATEOFTHEART DIGITAL EQUIPMENT WILL BE THE ROUGH EQUIVALENT IN TODAY'S DOLLARS OF BUILDING THE INTERSTATE HIGHWAY SYSTEM BY CONSERVATIVE ESTIMATES THE BILL WILL TOTAL AT LEAST 100 BILLION ABOUT EQUAL TO THE COMBINED CURRENT REVENUE OF THE CABLE AND REGIONAL TELEPHONE INDUSTRIES AND BECAUSE SOME KEY TECHNOLOGY IS STILL BEING DEVELOPED THE COST COULD BE MUCH MORE THE PLAN IS TO PASS MUCH OF THE COST ONTO CONSUMERS THROUGH HIGHER CABLETV RATES BUT THE PUBLIC'S WILLINGNESS TO PAY IS A QUESTION TROUBLING EVEN BULLISH MULTIMEDIA FRONTIERSMEN AFTER ALL CONSUMER FURY OVER SOARING DEREGULATED CABLE RATES PROMPTED PASSAGE OF THE 1992 CABLE ACT WHICH SOUGHT TO LIMIT RATE INCREASES I FEEL LIKE LAUGHING WHEN THEY TALK ABOUT 500 CHANNELS SAYS RUTH MEURER A CABLE SUBSCRIBER IN JACKSONVILLE FLA YOUR CABLE BILL WOULD EXCEED YOUR MONTHLY MORTGAGE PAYMENTS AND JUST WHAT WOULD VIEWERS BE BUYING FOR STARTERS IT WON'T NECESSARILY BE 500 CHANNELS THAT ARBITRARY NUMBER SLIPPED INTO USAGE AFTER A TCI NEWS CONFERENCE LAST YEAR WHEN MR MALONE MENTIONED THAT NEW DIGITALCOMPRESSION TECHNOLOGY COULD RAISE THE CAPACITY OF EXISTING CABLE CHANNELS TENFOLD REPORTERS MULTIPLIED THAT BY THE 50 CHANNELS NOW CARRIED ON TCI'S CABLE SYSTEMS AND AFTER THE NEXT DAY'S HEADLINES THE 500CHANNEL NUMBER STUCK THE NUMBER OF CHANNELS IS LIKELY TO VARY FROM COMMUNITY TO COMMUNITY BUT DIGITAL COMPRESSION BY SQUEEZING MORE CHANNELS ONTO CONVENTIONAL COAXIAL CABLE CERTAINLY WILL EXPLODE THE NUMBER OF VIEWING OPTIONS MANY NEW CHANNELS WILL BE TAILORED TO SPECIAL NICHE INTERESTS AND MOVIE CHANNELS WILL PROLIFERATE BEEFEDUP PAYPERVIEW SYSTEMS OFFERING A WIDE SELECTION OF RELEASES EVERY 15 MINUTES OR SO WILL LEAD EVENTUALLY TO MOVIESONDEMAND LATER VIEWERS MAY GET PUSHBUTTON HOME SHOPPING TELEVISED CLASSES INTERACTIVE PAYPERVIEW EVENTS AND CONCERTS ELECTRONIC LIBRARIES AND INTERACTIVE GAMES AND DATA SERVICES OTHER CHANNEL CAPACITY WILL BE DEVOTED TO HIGHDEFINITION TV WHICH WILL ENABLE NEW TV SETS TO DISPLAY VIDEO THAT RESEMBLES FILM QUALITY TO NAVIGATE THIS SEA OF INFORMATION CHANNEL SURFING WILL BE OUT OF THE QUESTION SCANNING 500 CHANNELS WOULD TAKE 43 MINUTES ACCORDING TO INDUSTRY ENGINEERS SUBSCRIBERS WILL PROBABLY PUSH REMOTE CONTROLS TO SELECT FROM ONSCREEN PROGRAM GUIDES SHOWING CATEGORIES SUCH AS NEWS SPORTS OR COMEDY MUCH AS TODAY THEY USE A MOUSE TO PULL UP COMPUTER FILES MOST OF THESE SERVICES ARE A DECADE OR MORE AWAY AND IT MAY TAKE AT LEAST THAT LONG FOR THE MARKETPLACE TO CATCH UP WITH THE VIDEO VISIONARIES THERE IS NO CRYING DEMAND FROM CONSUMERS FOR ADDITIONAL SERVICES AND INTERACTIVE TV RIGHT NOW SAYS JOSEPH SEGEL A CABLE PIONEER WHO BUILT QVC NETWORK INC INTO A 1 BILLION HOMESHOPPING EMPIRE THEN SOLD IT TO MEDIA MOGUL BARRY DILLER LAST YEAR THE COMPANIES CHAMPIONING THESE NEW SERVICES CONTEND THAT THEY WILL COME SOONER THAN SKEPTICS BELIEVE THEY NOTE ANTICIPATED TECHNOLOGICAL BREAKTHROUGHS THAT SHOULD ELIMINATE THE CUMBERSOME GLITCHES THAT HAVE FRUSTRATED EARLY USERS THEY ADD THAT IF VIEWERS ARE PERSUADED THEY CAN SAVE TIME OR MONEY WITH A SERVICE SUCH AS HOME SHOPPING THEY WILL EMBRACE IT INTERACTIVE TV IS GOING TO HAPPEN SAYS THOMAS A GRIEB DIRECTOR OF INTERACTIVE SERVICES FOR GTE CORP REMEMBER THEY CALLED CNN THE CHICKEN NOODLE NETWORK BUT TODAY CNN HAS CHANGED THE WAY WE GET OUR NEWS NONETHELESS CONSUMER SURVEYS SHOW THAT VIEWERS ARE SATISFIED WITH TV AS THEY KNOW IT THEIR COMPLAINT WITH CABLE IS NOT LACK OF CHOICES BUT COST AND PROGRAM QUALITY ALTHOUGH THEY CURRENTLY ARE OFFERED 30 CHANNELS OR MORE ONLY 61 OF THE NATION'S HOMES WITH ACCESS TO CABLE SUBSCRIBES TO IT AND SUBSCRIBERS STILL MOSTLY WATCH THE THREE MAJOR BROADCAST NETWORKS SIMILARLY HOME SHOPPING IS OFFERED TO ABOUT 50 MILLION SUBSCRIBERS BUT ONLY EIGHT MILLION USE IT TO BUY PRODUCTS HE ADDS THAT PEOPLE ARE WATCHING LESS PROGRAMMED TV THOUGH MORE HOME VIDEOS NOW THAN IN THE MID1980S THEY HAVE LESS LEISURE TIME THEY WORKED 53 MORE HOURS IN 1989 THAN IN 1969 AND HE NOTES THE MOST AFFLUENT PRESUMABLY INTERACTIVE MEDIA'S PRIME MARKET HAVE THE LEAST TIME EVERYBODY IS CONVINCED THERE ARE HUGE POTS OF GOLD OUT THERE SAYS A MICHAEL NOLL DEAN OF THE UNIVERSITY OF SOUTHERN CALIFORNIA'S ANNENBERG SCHOOL FOR COMMUNICATION THEY'RE PUTTING BIG MONEY ON THE TABLE THIS TIME BUT HISTORY SAYS NO WAY AND EARLY EXPERIMENTS WITH INTERACTIVITY DO BODE ILL FOR QUICK ACCEPTANCE WE ARE A NATION OF PEOPLE WHO CAN'T PROGRAM A VCR SAYS CABLE VETERAN GUS HAUSER THE NEW SERVICES HAVE TO BE EXTREMELY SIMPLE HE ADDS MR HAUSER SHOULD KNOW SIXTEEN YEARS AGO AS CHIEF EXECUTIVE OF WARNER CABLE COMMUNICATIONS INC THE FORERUNNER TO TIME WARNER CABLE HE LAUNCHED QUBE AN EXPERIMENTAL INTERACTIVE SERVICE IN COLUMBUS OHIO THAT LOST AN ESTIMATED 20 MILLION BEFORE WARNER PULLED THE PLUG IN THE MID1980S THE TECHNOLOGY WAS EXPENSIVE AND CUMBERSOME YET FORMER QUBE EXECUTIVES INSIST WARNER FOLDED IT BEFORE IT HAD TIME TO FIND ITS AUDIENCE A SIMILAR FATE BEFELL VIDEOTEX ONLINE DATA SERVICES TRANSMITTED TO TV SCREENS AND COMPUTER TERMINALS IN 1983 MIAMIBASED KNIGHTRIDDER INC BEGAN POURING AN ESTIMATED 50 MILLION INTO A SYSTEM THAT OFFERED 20000 CUSTOMERS AN ELECTRONIC NEWSPAPER AND OTHER DATA TIMES MIRROR CO PUT UP ABOUT 30 MILLION TESTING A SIMILAR SERVICE IN SOUTHERN CALIFORNIA NEITHER VENTURE PROVED VIABLE VIEWERS BALKED AT READING REAMS OF TEXT FROM A SCREEN AND AT STEEP HOURLY ACCESS FEES AND COSTLY EQUIPMENT RENTALS IN MORE RECENT TESTS VIEWER REVIEWS OF INTERACTIVITY HAVE BEEN MIXED THE 350 RESIDENTS OF CERRITOS CALIF WHO SUBSCRIBE TO GTE CORP'S MAIN STREET PAY 995 A MONTH FOR MORE THAN 65 DIFFERENT SERVICES INCLUDING GAMES STOCK QUOTES BILLPAYING FLIGHT RESERVATIONS SHOPPING AND AN ENCYCLOPEDIA IN GTE'S EXPERIENCE WITH MAIN STREET HERE AND ELSEWHERE 25 TO 50 OF SUBSCRIBERS DROP THE SERVICE EACH YEAR AND ARE REPLACED A CHURN RATE ABOUT EQUAL TO THAT OF PAYCABLE SERVICES NONETHELESS GTE SAYS THE CERRITOS EXPERIMENT PERSUADED IT TO CONTINUE ROLLING OUT MAIN STREET INTO NEW TERRITORIES IT IS PROJECTING A MILLION SUBSCRIBERS WITHIN FIVE YEARS WE WILL MAKE MONEY WHEN WE GET THE PENETRATION WE WANT SAYS A GTE SPOKESMAN WHO DOESN'T SPECIFY AN EXACT GOAL IT IS AN EVOLUTIONARY CHANGE IN TV NOT REVOLUTIONARY TCI'S MR THOMSON STRESSES THAT THE NEW EQUIPMENT AND SERVICES WILL BE BROUGHT OUT GRADUALLY AS DEMAND EMERGES AND THAT PRICES WILL BE MARKETDRIVEN TCI HE CONTENDS HAS PURSUED A MEASURED AND FOCUSED COURSE AND THAT WHATEVER HAPPENS ITS INVESTMENT IN NEW TECHNOLOGY WILL PAY OFF BY IMPROVING EXISTING CABLE SERVICE AND ALTHOUGH CONCEDING A NEED FOR MORE TESTS OF INTERACTIVITY HE ADDS OUR TESTS SO FAR INDICATE THERE WILL BE DEMAND EARLY ON ESPECIALLY FOR MOVIESONDEMAND INTERACTIVE CLASSES BETWEEN TWO OR MORE LOCATIONS AND INTERACTIVE HOME SHOPPING INDEED OPTIMISTIC STUDIES ABOUT THE POTENTIAL FOR INTERACTIVE TV ABOUND A RECENT SURVEY FROM CHILTON RESEARCH SERVICES FOUND THAT SIX IN 10 ADULTS EXPRESSED INTEREST IN THE POTENTIAL OF INTERACTIVITY AND 86 OF THEM SAY THEY WOULD DEFINITELY OR PROBABLY WATCH VIDEO ON DEMAND THE INDUSTRY'S STRATEGY MAKES SENSE TO JOHN CAREY DIRECTOR OF GREYSTONE COMMUNICATIONS A DOBBS FERRY NY TELECOMMUNICATIONSRESEARCH FIRM CONVENTIONAL MARKET RESEARCH IS ALL BUT USELESS WHEN THE PRODUCT IS HIGHTECH AND BLUESKY HE SAYS SURVEYING CONSUMERS ABOUT THEIR HYPOTHETICAL PREFERENCES IN INTERACTIVE MULTIMEDIA HE ARGUES IS AKIN TO ASKING WOULD YOU BUY A DOG THAT COULD FLY HE ADDS THE ONLY WAY YOU CAN GET A HANDLE ON THIS IS TO GO INTO THE FIELD WITH REAL SERVICES TO THAT END CABLE AND PHONE COMPANIES ARE RAPIDLY TOOLING UP FOR THE INTERACTIVE FUTURE AFTER BELL ATLANTIC AND TCI COMPLETE THEIR PROPOSED MERGER THE COMBINED COMPANY PLANS TO SPEND 15 BILLION OVER THE NEXT FIVE YEARS UPGRADING ITS NETWORKS DURING THE SAME PERIOD TIME WARNER INC AND PARTNER U S WEST WILL SPEND 5 BILLION ON UPGRADES AND PACIFIC TELESIS GROUP PLANS TO SPEND 16 BILLION OVER SEVEN YEARS FOR A FIBEROPTIC NETWORK TO CARRY TELEPHONE CABLETV AND INTERACTIVE SERVICES TO ITS CALIFORNIA CUSTOMERS THE NATION WILL SOON GET ITS FIRST GLIMPSE OF A HIGHCAPACITY FULLSERVICE NETWORK EARLY NEXT YEAR TIME WARNER WILL BEGIN OFFERING STATEOFTHEART SERVICES IN ORLANDO WHERE IT IS DEPLOYING FIBEROPTIC CABLE AND POWERFUL SETTOP CONVERTERS IN 4000 TEST HOMES AMONG THE OFFERINGS MOVIESONDEMAND INTERACTIVE SHOPPING VIDEO CONFERENCING GAMES AND TELEVISED CLASSES VIACOM INC BEGINS A SIMILAR TEST NEXT YEAR IN CASTRO VALLEY CALIF WHERE VIEWERS WILL GET INTERACTIVE VERSIONS OF ITS MTV AND NICKELODEON CHANNELS AMONG OTHER SERVICES WITH ONLY ABOUT A THIRD OF THE NATION'S SUBSCRIBERS NOW WIRED WITH FIBEROPTIC CABLE EXPANDING THIS HIGHCAPACITY WIRE TO CITIES COAST TO COAST WILL COST THE INDUSTRY SOME 20 BILLION ACCORDING TO THE NATIONAL CABLE TELEVISION ASSOCIATION INTERCONNECTING VARIOUS SYSTEMS TO PERMIT A USER IN LOS ANGELES SAY TO PLAY A VIDEO GAME WITH SOMEONE IN CHICAGO WOULD COST ANOTHER 14 BILLION CABLE COMPANIES MUST ALSO BUY DIGITALCOMPRESSION EQUIPMENT FOR THEIR CONTROL CENTERS AS WELL AS HIGHCAPACITY CABLE BOXES FOR EVERY SUBSCRIBER'S HOME TO PUT A BOX IN EVERY US HOME WITH A TV WOULD COST ABOUT 33 BILLION ONE CRITICAL PIECE OF HARDWARE ISN'T EVEN COMMERCIALLY AVAILABLE IT IS THE DIGITAL FILE SERVER A POWERFUL COMPUTER THAT FUNCTIONS LIKE A GIANT JUKEBOX STORING AND SORTING VAST QUANTITIES OF DIGITIZED VIDEO AND DATA AND SWITCHING IT TO VIEWERS SECURITY PROBLEMS AND DESIGN UNCERTAINTIES WITH THESE COMPUTERS COULD PUSH THE INDUSTRY'S HARDWARE COSTS ABOVE THE 100 BILLION ESTIMATE FOR EXAMPLE NO ONE KNOWS HOW MUCH CAPACITY WILL BE NEEDED ONLY THAT IT WILL BE MASSIVE TO AVOID INFORMATION BOTTLENECKS AS MILLIONS OF MESSAGES CLOG THE WIRES AT PEAK HOURS HARDWARE COSTS ARE ONLY THE BEGINNING MANY ANALYSTS AND EVEN INDUSTRY EXECUTIVES ARE SKEPTICAL ABOUT THE NEW SERVICES' ULTIMATE PROFIT POTENTIAL THE NEW FEATURES ARE LIKELY TO CANNIBALIZE EXISTING SERVICES GENERATING LITTLE INCREMENTAL REVENUE MOVIESONDEMAND WILL SURELY CRIMP SALES OF PREMIUM CABLE CHANNELS SUCH AS HOME BOX OFFICE HBO'S GROWTH IN SUBSCRIBER HOMES NOW TOTALING ABOUT 17 MILLION IS ALREADY STAGNANT AND JOHN SIE CHAIRMAN OF THE PAYCABLE SERVICE ENCORE MEDIA CORP DOUBTS THAT MOVIESONDEMAND WILL CAPTURE ALL THE REVENUE NOW GOING TO VIDEORENTAL STORES HE SAYS THAT EVEN IF MOVIESONDEMAND TAKES HALF THE RECENT HITS VIDEORENTAL MARKET IT WOULD GENERATE ONLY ABOUT 1 BILLION A YEAR IN CASH FLOW FOR THE ENTIRE CABLE INDUSTRY MR SIE SAYS FORECASTERS ALSO GLOSS OVER THE COSTS OF PROGRAMMING NEW SPECIALINTEREST CHANNELS IT TAKES A LOT OF PROGRAMMING TO FILL A 24HOUR CHANNEL HE SAYS AND CONSUMERS DON'T WANT SCHLOCK EVEN THE CHEAPEST VIDEO FORMAT TALK SHOWS COSTS ABOUT 20000 AN HOUR HE NOTES AS THE AUDIENCE FRAGMENTS OVER A MULTITUDE OF CHANNELS HE ADDS NARROWINTEREST PROGRAMMING WON'T BE COSTEFFECTIVE FOR ADVERTISERS THE RAPID CONVERGENCE OF THE CABLE AND TELEPHONE INDUSTRIES SUGGESTS OTHER HIDDEN COSTS TO TOM WOLZIEN AN ANALYST AT SANFORD C BERNSTEIN & CO IN NEW YORK RECENT MERGERS WILL FOR THE FIRST TIME PIT ENTRENCHED CABLE AND TELEPHONE MONOPOLIES AGAINST ONE ANOTHER IN COSTLY TURF BATTLES HE SAYS ADDING THAT NOBODY IS FACTORING IN THE BOTTOMLINE PRESSURES OF DEFENDING EXISTING MARKETS AND RAIDING COMPETITORS' TERRITORY WITH SO MANY IMPONDERABLES FEW EVEN HAZARD A GUESS AS TO WHEN INTERACTIVE MULTIMEDIA MIGHT BEGIN PAYING OFF MR WOLZIEN ESTIMATES THAT INTERACTIVE AND PAYFORVIEW REVENUES WILL CONTRIBUTE LESS THAN 5 TO COMBINED CABLE AND PHONECOMPANY REVENUES THROUGH 1998 THAT NUMBER COULD EVENTUALLY REACH ABOUT 20 HE BELIEVES ONCE THE HARDWARE IS IN PLACE AND PROVIDED A MARKET DEVELOPS THAT OF COURSE MAY BE THE STICKIEST PROVISO OF ALL DON'T FORGET MR SIE SAYS WE STILL HAVE BLACKANDWHITE TVS OUT THERE 9311290101 931129 FOREIGN EXCHANGE POUND LIKELY TO RISE AGAINST CURRENCIES IN EUROPE ON LOWER RATES HIGHER TAXES BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK EXPECTATIONS FOR LOWER INTEREST RATES AND HIGHER TAXES MAY SEEM LIKE A STRANGE BASIS FOR FORECASTING A STRONGER CURRENCY BUT THAT'S JUST WHAT ANALYSTS ARE PREDICTING FOR THE POUND AGAINST ITS EUROPEAN COUNTERPARTS STILL WITH THE US ECONOMY HAVING GAINED MOMENTUM STERLING LIKELY WILL LOSE GROUND AGAINST THE DOLLAR IN COMING MONTHS ACCORDING TO CURRENCY ANALYSTS THE KEY FOR THE POUND IS BRITAIN'S POTENTIAL FOR ECONOMIC GROWTH COMPARED WITH THAT OF THE REST OF EUROPE ANALYSTS SAY WHILE BUSINESS ACTIVITY IN BRITAIN IS BY NO MEANS STELLAR IT'S STILL EXPECTED TO OUTPACE THE ECONOMIES ON THE CONTINENT IT'S THAT POTENTIAL FOR A RELATIVELY HEALTHIER ECONOMY THAT HAS ALLOWED TRADERS TO LOOK BEYOND LAST TUESDAY'S MOVE BY THE BANK OF ENGLAND TO CUT THE BASE LENDING RATE TO 55 FROM 6 FOLLOWING THE RATE CUT THE POUND RALLIED FROM 25065 MARKS TO FINISH THE WEEK AT 25265 MARKS MEANWHILE LATE FRIDAY IN NEW YORK THE DOLLAR WAS QUOTED AT 17136 MARKS UP FROM 17023 MARKS LATE WEDNESDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 10888 YEN UP FROM 10818 YEN ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10913 YEN AND AT 17134 MARKS ONE NORMALLY WOULD EXPECT THAT THE EFFECT OF RATES COMING DOWN WOULD BE TO CAUSE THE CURRENCY TO WEAKEN SAYS MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO IN LONDON BUT AS HAS RECENTLY BEEN THE CASE WITH CURRENCIES IN BELGIUM DENMARK AND ELSEWHERE AS RATES COME DOWN IT IS INCREASING THE ECONOMIC CONFIDENCE BEHIND THE CURRENCY MR O'HANLON SAID IN FACT STERLING WAS ABLE TO CHALK UP ITS GAINS IN THE FACE OF EXPECTATIONS FOR FURTHER INTERESTRATE CUTS ANALYSTS EXPECT THE BANK OF ENGLAND TO INITIATE ANOTHER 1/2 PERCENTAGE POINT REDUCTION IN THE LENDING RATE TO 5 SOMETIME FOLLOWING TOMORROW'S PRESENTATION OF THE 19941995 BUDGET STATEMENT BY CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE NICK PARSONS HEAD OF THE TREASURY ADVISORY GROUP FOR THE CANADIAN IMPERIAL BANK OF COMMERCE IN LONDON ARGUES THAT LAST WEEK'S BASE RATE CUT WAS BUT THE FIRST LEG OF A PLANNED MOVE TO REDUCE INTEREST RATES BY A FULL PERCENTAGE POINT BUT A FULL ONE PERCENT ACCOMPANYING THE BUDGET MIGHT HAVE UNSETTLED THE FOREIGN EXCHANGE MARKET AS IT WOULD LOOK TO BE POLITICALLY DRIVEN MR PARSONS SAYS THE FOLLOWUP CAN COME AT ANY STAGE AFTER THE BUDGET ANALYSTS TERM LAST WEEK'S RATE CUT A SIGNAL THAT THE BRITISH GOVERNMENT IS PLANNING TO SHARPLY REIN IN ITS FISCAL PURSESTRINGS IN NEXT YEAR'S BUDGET WHAT IT OUGHT TO BE TELLING PEOPLE AND WHAT THE MARKET IS ASSUMING IS THAT IT WILL BE A TIGHT AFFAIR SAYS MARC HENDRIKS RESEARCH DIRECTOR AT SWISS BANK CORP IN LONDON CHANCELLOR CLARKE'S PLAN TO TRIM THE COUNTRY'S BUDGET DEFICIT IS EXPECTED TO CONCENTRATE ON RAISING REVENUE THROUGH INDIRECT TAXES SUCH AS VALUEADDED TAXES POSSIBLY BY AS MUCH AS 3 BILLION 442 BILLION TO 4 BILLION IF IT IS THAT TIGHT THEN A FURTHER RATE CUT WILL BE NECESSARY MR HENDRIKS SAYS THAT'S BECAUSE THE UK ECONOMY WHILE BETTER OFF THAN THE REST OF THE EUROPE IS STILL ON SHAKY GROUND WE HAVE AN ECONOMY THAT IS BEING DRIVEN MAINLY BY THE CONSUMER AND EXPORTS MR HENDRIKS SAYS EXPORT GROWTH IS ALREADY WEAKENING OFF AND IF HE IS GOING TO TIGHTEN FISCAL POLICY IT'S GOING TO BE AIMED AT CONSUMERS CONSUMERS MAY REBEL AND ENDANGER OR STOP IN THE TRACKS THE MODEST CONSUMER SPENDING WE'VE GOT TRADERS HOWEVER ARE BETTING THAT THE RATE CUTS WILL BE ENOUGH TO KEEP THE UK ECONOMY IN AN EXPANSION PHASE LOOSER MONETARY POLICY WILL BE SUFFICIENT TO KEEP GROWTH AT LEAST TENTATIVELY RISING SAYS KIDDER'S MR O'HANLON ANOTHER REASON TRADERS ARE GAMBLING ON STERLING IS A SENSE THAT EVEN IF THE BANK OF ENGLAND DOES EASE FURTHER IT WILL BE FOR THE FINAL TIME IN CONTRAST THERE APPEARS TO BE SUBSTANTIALLY MORE ROOM FOR GERMAN INTEREST RATES TO FALL IF THEY DO AGAIN CUT THE BASE RATE STERLING COULD RALLY AS THE MARKET MIGHT PERCEIVE IT AS THE LAST RATE CUT SAYS JOHN ROTHFIELD CURRENCY ANALYST AT FIRST NATIONAL BANK OF CHICAGO 9311290100 931129 AUTO MAKER FIAT ASKS GOVERNMENT FUND TO HELP PAY 10000 LAIDOFF WORKERS BY MAUREEN KLINE AND SERGIO CANTONE STAFF REPORTERS OF THE WALL STREET JOURNAL TURIN ITALY AS VOLKSWAGEN AG BEGINS ITS EXPERIMENT WITH THE FOURDAY WORKWEEK IN GERMANY TROUBLED ITALIAN AUTO MAKER FIAT SPA IN CONTRAST IS USING A MORE ITALIAN APPROACH TO A SIMILAR PROBLEM THE NEGOTIATIONS IN ITALY INSTEAD OF INTRODUCING MORE FLEXIBLE SOLUTIONS TO AVOID LAYOFFS AIM TO MAKE USE OF ITALY'S TRADITION OF GOVERNMENTSUBSIDIZED TEMPORARY LAYOFFS IN WHICH WORKERS RECEIVE A REDUCED MONTHLY SALARY IN EXCHANGE FOR NOT WORKING FIAT IS ASKING THE ITALIAN GOVERNMENT AND UNION OFFICIALS TO APPROVE ITS PLAN TO USE A GOVERNMENT FUND TO PAY FOR NEARLY 10000 ADDITIONAL TEMPORARY LAYOFFS NEXT YEAR RISING TO ABOUT 13000 IN 1995 THE PROPOSAL WAS ANNOUNCED IN THE WAKE OF A 21 DECLINE IN FIAT CAR SALES IN THE FIRST 10 MONTHS OF THIS YEAR FROM THE YEAREARLIER PERIOD ABOUT 3800 OF THE TEMPORARY LAYOFFS TARGET OLDER WHITECOLLAR WORKERS TO BE KEPT ON THE TEMPORARY LAYOFF PROGRAM UNTIL THEY REACH RETIREMENT AGE NEVER RETURNING TO WORK LIKE OTHER EUROPEAN COUNTRIES ITALY IS IN A JOBS CRISIS THAT IS PARTICULARLY DISTURBING EXPERTS SAY BECAUSE MANY WHITECOLLAR WORKERS ARE BEING LAID OFF THIS TIME NO ONE KNOWS HOW SOCIETY WILL ABSORB THE UNEMPLOYED FROM A STRUCTURAL POINT OF VIEW IT'S DEFINITELY THE WORST CRISIS SINCE WORLD WAR II SAYS PIA SARACENO DIRECTOR OF THE MILANBASED INSTITUTE FOR SOCIAL RESEARCH WITH UNEMPLOYMENT AT 11 AND RISING THE DEBTSTRAPPED NATION IS BEING PRESSURED TO ACT BUT WITH PARLIAMENTARY ELECTIONS ON THE HORIZON ITALIANS DOUBT ANY SIGNIFICANT NEW LEGISLATION WILL BE INTRODUCED UNTIL A GOVERNMENT IS INSTALLED PROBABLY NEXT SPRING DESPITE SOME PROGRESS BY THE GOVERNMENT SINCE LAST YEAR'S HISTORIC ACCORD TO END INFLATIONARY WAGE INDEXATION INCLUDING DRAFT LEGISLATION TO INTRODUCE TEMPORARY EMPLOYMENT EMPLOYERS AND UNIONS INSIST MORE ACTION IS NEEDED CONFINDUSTRIA THE EMPLOYERS' GROUP HAS TWO SHORTTERM PROPOSALS THE FIRST IDEA IS TO UNBLOCK ALL THE PRIVATE AND PUBLIC INVESTMENT PROJECTS THAT ARE CURRENTLY ON HOLD BUREAUCRACY IS BLOCKING TRILLIONS OF LIRE OF INVESTMENTS SAYS STEFANO MICOSSI DIRECTOR OF RESEARCH AT CONFINDUSTRIA THE SECOND IS INTRODUCING MORE FLEXIBILITY TO THE JOB MARKET TEMPORARY WORKERS PARTTIME WORKERS NIGHT SHIFTS EXTENDING STORE HOURS TO SUNDAYS MORE TAXI LICENSES FOR EXAMPLES GIVE ME EVERY POSSIBLE WAY TO HIRE AT REASONABLE COST SAYS MR MICOSSI IF I WANT TO HIRE A BOY FOR TWO MONTHS TO DELIVER CHRISTMAS PRESENTS I SHOULD BE ABLE TO WITHOUT THE FEAR OF HAVING TO HIRE HIM FULLTIME WITH FULL SOCIAL SECURITY CONTRIBUTIONS TRADE UNIONS ON THE OTHER HAND ARE IN FAVOR OF SHORTENING THE WORKWEEK NOT TO FOUR DAYS AS AT VW BUT FROM A MAXIMUM OF 60 HOURS INCLUDING OVERTIME TO A MUCH LOWER CEILING A LABOR MINISTRY COMMISSION IS PREPARING LEGISLATION THAT WOULD SET A 48HOUR CEILING AND ALLOW GREATER FLEXIBILITY IT WOULD ALLOW COMPANIES TO BETTER PLAN THEIR PRODUCTION SAYS A MINISTRY SPOKESWOMAN WHO SAID IT WILL BE BENEFICIAL TO WORKERS AS WELL SHE SAID THAT HOURS NOT USED UP IN A PARTICULAR WEEK COULD BE CARRIED OVER TO A LATER WEEK AT THE DISCRETION OF EMPLOYERS AND WORKERS UNIONS TRADITIONALLY STRONG IN ITALY ARE NOT EXPECTED TO MAKE FURTHER CONCESSIONS EASILY AFTER THEIR AGREEMENT TO END WAGE INDEXATION A SPOKESMAN FOR THE CONFEDERAZIONE GENERALE ITLAIANA DEL LAVORO A NATIONAL LABOR UNION SAYS THE SOLUTION FOR THE FUTURE IS A NEW DEVELOPMENT PLAN FOR THE NATION TO BE FINANCED BY STATE SALES OF REAL PROPERTY THE FIAT NEGOTIATIONS WHICH COULD LAST FOR WEEKS ARE EXPECTED TO BE A TESTING GROUND FOR THE CURRENT JOBS DEBATE THE NEGOTIATIONS WILL BE EMBLEMATIC ALSO BECAUSE THE GOVERNMENT NO LONGER HAS THE SPENDING MARGINS IT HAD A FEW YEARS AGO SAYS MS SARACENO OF THE INSTITUTE FOR SOCIAL RESEARCH THEY WON'T BE EASY NEGOTIATIONS THE FIAT GROUP EMPLOYS ABOUT 280000 PEOPLE ABOUT 135000 OF WHOM WORK FOR AUTO UNIT FIAT AUTO SPA ABOUT 11000 EMPLOYEES ARE ALREADY ROTATED INTO TEMPORARY LAYOFF PROGRAMS AND CONTINUE RECEIVING PARTIAL SALARIES THE TWOYEAR TEMPORARY LAYOFFS THAT FIAT IS PROPOSING MUST BE APPROVED BY THE GOVERNMENT AS EXTRAORDINARY LAYOFFS FIAT HAS USED UP ITS ANNUAL LIMIT FOR ORDINARY SHORTER ROTATING TEMPORARY LAYOFFS 9311290099 931129 SMALL STOCK FOCUS SOME FIRMS POISED FOR GROWTH AS OVERSEAS ECONOMIES REVIVE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL CONVENTIONAL WISDOM HOLDS THAT USBASED SMALL STOCKS DON'T HAVE MUCH TO DO WITH WHAT GOES ON BEYOND THE COUNTRY'S BORDERS WHAT'S IMPORTANT TO THEM IS ECONOMIC ACTIVITY HERE NOT WHAT HAPPENS IN EUROPE OR THE FAR EAST THE THINKING GOES BUT IN FACT AN ARRAY OF SMALLCAPITALIZATION COMPANIES HAVE SUBSTANTIAL FOREIGN EXPOSURE SOME MONEY MANAGERS AND ANALYSTS POINT OUT IF OVERSEAS ECONOMIC GROWTH BOUNCES BACK NEXT YEAR THESE PROS SAY EARNINGS OF INTERNATIONALLY ORIENTED SMALL FIRMS COULD RATCHET UP FOR NOW ECONOMISTS THINK A REBOUND IN EUROPE IN THE SECOND HALF IS A DISTINCT PROSPECT BUT THERE ARE LINGERING DOUBTS WHETHER JAPAN CAN SHAKE OFF ITS ECONOMIC MALAISE EUROPE IS GOING TO GROW FASTER THAN JAPAN SAYS MICHAEL AHO CHIEF INTERNATIONAL ECONOMIST AT PRUDENTIAL SECURITIES IN NEW YORK JAPAN HE PREDICTS WILL SHOW A DECLINE IN OUTPUT OF AROUND 1 NEXT YEAR AFTER A FLAT YEAR IN 1993 UNLESS IT ENACTS AN EFFECTIVE FISCALSTIMULUS PACKAGE EUROPE ON THE OTHER HAND IS ALREADY TAKING STEPS TO ADDRESS COMPETITIVE PROBLEMS AND HAS BEEN REDUCING INTEREST RATES MR AHO SAYS AS A RESULT HE SAYS EUROPEAN COMMUNITY NATIONS SHOULD EXPERIENCE A MODERATE PICKUP IN GROWTH DURING THE SECOND HALF OF NEXT YEAR ANTHONY AVENI VICE PRESIDENT OF SOCIETY ASSET MANAGEMENT INC IN CLEVELAND ALSO LOOKS FOR A PICKUP IN EUROPE OBVIOUSLY EUROPE'S ECONOMY HAS BEEN IN THE DOLDRUMS BUT THE TREND IN INTEREST RATES IN BOTH GERMANY AND THE UK MAKES FOR BRIGHTER PROSPECTS HE'S INVESTING IN HAYES WHEELS INTERNATIONAL A ROMULUS MICH MANUFACTURER OF CASTALUMINUM AND FABRICATED WHEELS FOR THE AUTOMOTIVE MARKET THAT HAS SUBSTANTIAL EUROPEAN EXPOSURE HE'S BANKING ON A GRADUAL SHIFT IN APPETITE AMONG EUROPEAN CAR MAKERS TO ALUMINUM WHEELS FROM STEEL WHEELS A TREND THAT'S ALREADY OCCURRING IN THE US THE PRINCIPAL SOURCE OF GROWTH IN HAYES'S EUROPEAN BUSINESS WILL BE A CYCLICAL REBOUND IN EUROPEAN VEHICLE PRODUCTION ADDS JOSEPH PAUL AN ANALYST WITH SANFORD C BERNSTEIN & CO IN NEW YORK WITH AROUND 16 OF ITS REVENUE AND 12 OF ITS OPERATING PROFIT DERIVED OVERSEAS THE COMPANY IS POISED TO EXPAND EARNINGS BY 15 ANNUALLY IN THE NEXT SEVERAL YEARS MR PAUL PREDICTS MR AVENI ALSO LIKES VISHAY INTERTECHNOLOGY AS A PLAY ON EUROPEAN ECONOMIC RECOVERY THE MALVERN PA COMPANY MANUFACTURES AND MARKETS ELECTRONIC PARTS FOR THE COMPUTER AEROSPACE INDUSTRIAL AND AUTOMOTIVE INDUSTRIES IT GENERATES SOME 60 OF ITS REVENUE OVERSEAS PRIMARILY IN EUROPE HE NOTES THEY PRODUCE A LOT OF MUNDANE ELECTRONICS THAT GO INTO JUST ABOUT EVERYTHING AND THAT WILL ALLOW THEM TO PARTICIPATE EARLY IN ANY RECOVERY IN EUROPE AT BANKERS TRUST CO MARY LISANTI VICE PRESIDENT AND PORTFOLIO MANAGER OF SMALLCAP AND MIDCAP FUNDS WITH ASSETS OF AROUND 800 MILLION ALSO IS BETTING ON A EUROPEAN RECOVERY BY MIDYEAR IF EUROPE AND ASIA DO PICK UP STEAM SHE MAY INCREASE THE WEIGHTING OF STOCKS WITH OVERSEAS EXPOSURE TO AROUND 30 OF HER PORTFOLIOS NEXT YEAR FROM 20 THE KEY GOING FORWARD IS TECHNOLOGY SHE SAYS TECHNOLOGY COMPANIES CLEARLY ARE GOING GLOBAL EARLIER IN THEIR DEVELOPMENT THAN DURING THE 1980S SHE LIKES THREE COMPANIES WITH BROAD EXPOSURE ON THE EUROPEAN TECHNOLOGICAL STAGE VIEWLOGIC SYSTEMS A MARLBORO MASS DEVELOPER OF SOFTWARE FOR THE DESIGN OF ADVANCED ELECTRONIC PARTS DERIVES MORE THAN A THIRD OF ITS BUSINESS OVERSEAS MOSTLY IN THE EC SHE SAYS SHE EXPECTS THE COMPANY TO INCREASE EARNINGS TO 105 A SHARE IN 1994 FROM AROUND 83 CENTS THIS YEAR AND THE 51 CENTS REPORTED IN 1992 MS LISANTI ALSO IS BULLISH ON SOLECTRON THE MILPITAS CALIF CONTRACT MANUFACTURER OF PARTS FOR COMPUTER COMPANIES THE COMPANY RECENTLY HAS BEEN BUYING PLANTS IN FRANCE AND SCOTLAND THEY GENERATED 23 OF SALES OVERSEAS LAST YEAR AND THEY EXPECT THAT TO GROW TO OVER 50 NEXT YEAR BECAUSE OF THE MANUFACTURING FACILITIES THEY ACQUIRED SHE ADDS THE BANKERS TRUST FUND MANAGER EXPECTS THE COMPANY TO POST EARNINGS OF 120 A SHARE FOR THE FISCAL YEAR ENDING NEXT AUGUST UP FROM 75 CENTS IN FISCAL 1993 FOR FISCAL 1995 SHE SEES 175 A SHARE AS BOTH A PLAY ON EUROPEAN RECOVERY AND POSTSOVIET MODERNIZATION IN RUSSIA SHE ALSO FAVORS ANDREW CORP OF ORLAND ILL THE COMPANY MAKES SPECIALIZED ANTENNAS AND TRANSMISSION LINES USED IN TELECOMMUNICATIONS SYSTEMS WITH 26 OF ITS SALES OVERSEAS IT POSTED EARNINGS OF 163 A SHARE IN THE YEAR ENDED IN SEPTEMBER AND ACCORDING TO MS LISANTI'S ESTIMATES CAN REACH 2 IN THE CURRENT FISCAL YEAR AND ABOUT 240 IN THE FOLLOWING THE STOCK IS CURRENTLY TRADING AT 17 TIMES HER ESTIMATED FISCAL 1994 EARNINGS MOVING EAST TOWARD JAPAN THE OUTLOOK IS DECIDEDLY MIXED MANAGERS AND ECONOMISTS SAY THERE'S NOT A WHOLE LOT OF EVIDENCE THAT ECONOMIC RECOVERY WILL TAKE PLACE ANYTIME SOON IN JAPAN SAYS SUNG WON SOHN CHIEF ECONOMIST FOR NORWEST CORP IN MINNEAPOLIS MR SOHN WHO RECENTLY RETURNED FROM A TRIP TO JAPAN AND SOUTH KOREA ADDS FOR US COMPANIES SELLING INTO THE JAPANESE MARKET 1994 WILL BE A TOUGH PROPOSITION THE EXCEPTION HE SAYS WILL BE THOSE SMALL US FIRMS ESPECIALLY RETAILERS THAT OFFER NOVEL PRODUCTS AT COMPETITIVE PRICES THE JAPANESE ARE NOW TRADING DOWN AND LOOKING FOR VALUE AND BARGAINS ONE PROMISING STOCK ON HIS RADAR IS OSHKOSH B'GOSH A CHILDREN'S AND MENSWEAR APPAREL MAKER WITH A SMALL BUT GROWING PRESENCE IN THE JAPANESE MARKET THE OSHKOSH WIS COMPANY EXPORTS DIRECTLY TO JAPAN AND ALSO SELLS THROUGH LICENSING AGREEMENTS FOR WHICH IT RECEIVES ROYALTIES ED WHITE AN ANALYST WITH LEHMAN BROTHERS IN NEW YORK SAYS HE'S EXPECTING MORE CAPITAL SPENDING BY MAJOR CHIP COMPANIES IN JAPAN EVEN IF THE ECONOMY REMAINS WEAK THAT SHOULD BODE WELL FOR SUPPLIERS OF MANUFACTURING EQUIPMENT FOR THE SEMICONDUCTOR INDUSTRY HE'S RECOMMENDING LAM RESEARCH A FREMONT CALIF MANUFACTURER OF ETCHING EQUIPMENT USED IN SEMICONDUCTOR PRODUCTION ITS EARNINGS HE THINKS CAN GROW TO 144 A SHARE THIS YEAR FROM 79 CENTS LAST YEAR KULICKE & SOFFA INDUSTRIES A WILLOW GROVE PA PRODUCER OF DEVICES USED IN CHIP ASSEMBLY WHOSE EARNINGS HE EXPECTS TO CLIMB TO 190 A SHARE FOR THE FISCAL YEAR ENDING IN SEPTEMBER 1994 FROM AN ESTIMATED 133 A YEAR EARLIER AND TERADYNE A BOSTON MANUFACTURER OF AUTOMATIC TESTING EQUIPMENT FOR SEMICONDUCTORS WHOSE NET HE EXPECTS WILL RISE TO 1 A SHARE IN THE CURRENT YEAR FROM 67 CENTS LAST YEAR SMALLCOMPANY STOCKS ENDED FRIDAY'S THINLY TRADED ABBREVIATED SESSION SLIGHTLY HIGHER WITH THE HANDFUL OF MARKET PARTICIPANTS WHO SHOWED UP PAYING LITTLE ATTENTION TO BULLISH UNDERLYING FACTORS THE RUSSELL 2000 INDEX WHICH TRACKS SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET OVER THE COUNTER AND ON THE OTHER MAJOR EXCHANGES WAS UP 033 OR 01 AT 25015 OMEGA ENVIRONMENTAL WAS UP 1 3/4 OR 15 TO 13 5/8 AFTER THE COMPANY SAID IT EXPECTS TO MAINTAIN THE PACE OF ITS REVENUE GROWTH WHICH HAS AVERAGED ABOUT 300 IN RECENT QUARTERS THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID OMEGA EXPECTS TO MAKE 10 TO 15 ACQUISITIONS IN THE NEXT 14 TO 18 MONTHS WITH THE COMPANIES ACQUIRED HAVING REVENUES TOTALING 200 MILLION TO 250 MILLION READRITE WHICH MAKES COMPUTERSTORAGE PRODUCTS ROSE 1 1/8 OR 88 TO 13 7/8 FOLLOWING WEDNESDAY'S GAIN OF 7/8 OR 74 THE COMPANY'S OFFICES WERE CLOSED FRIDAY AND MARKET PARTICIPANTS WERE UNABLE TO POINT TO ANY SPECIFICS THAT COULD ACCOUNT FOR THE STOCK'S STRENGTH SUPERMAC TECHNOLOGY WHICH WAS HAMMERED WEDNESDAY AFTER PRUDENTIAL SECURITIES DOWNGRADED THE STOCK TO HOLD FROM BUY REBOUNDED FRIDAY POSTING A GAIN OF 7/8 OR 69 CLOSING THE SESSION AT 13 5/8 LARRY BAUMAN CONTRIBUTED TO THIS ARTICLE NINE SMALLCAPITALIZATION COMPANIES WITH SUBSTANTIAL FOREIGN EXPOSURE THAT COULD BENEFIT FROM AN UPTURN IN OVERSEAS ECONOMIC ACTIVITY 9311290098 931129 MANAGER'S JOURNAL ROBERT'S ELECTRONIC RULES OF ORDER BY MICHAEL SCHRAGE TOP MANAGERS AT A LEADING HIGHTECH FIRM RECENTLY DECIDED TO CUT BACK ON THE USE OF ELECTRONIC MAIL EVEN THOUGH IT HAD MADE COORDINATING COMPLEX PROJECTS MUCH EASIER WHY SINCE THESE MANAGERS DID SUCH AN EXCELLENT JOB RESOLVING MOST OF THEIR PROBLEMS ON ELECTRONIC MAIL THEY DID AWAY WITH REGULARLY SCHEDULED MEETINGS AGREEING TO MEET ONLY WHEN CONFRONTED WITH PROBLEMS TOO TOUGH TO HANDLE OVER THE NETWORK WHAT THEY DISCOVERED HOWEVER WAS THAT WHEN THEY GOT TOGETHER TO DISCUSS THEIR MOST INTRACTABLE CONTROVERSIAL PROBLEMS THE RESULTING MEETINGS PROVED INTENSE AND UNPLEASANT PRECISELY BECAUSE THEY HAD ALREADY USED THE NETWORK TO REACH EASY CONSENSUS ON OTHER ISSUES DEBATING THE UNRESOLVED TOUGH ISSUES IN PERSON TURNED THEIR PERSONAL MEETINGS INTO COMBAT ZONES AFTER UNANIMOUSLY AGREEING TO HOLD THE NETWORK RESPONSIBLE FOR THEIR DIFFICULTIES THE MANAGERS CHOSE TO GO BACK TO REGULARLY SCHEDULED MEETINGS ALBEIT WITH LESS FREQUENCY THAN BEFORE THERE'S MORE TO THIS MANAGEMENT CHALLENGE THAN GOOD NETWORK MANNERS WHAT COMPUTERDOM'S PRACTITIONERS LIKE TO CALL NETIQUETTE NETWORKS CAN HAVE OTHER LESS POLITE EFFECTS THE REAL ISSUE IS WHAT KINDS OF TOOLS AND TECHNIQUES INDIVIDUALS AND ORGANIZATIONS CAN USE TO MANAGE THEIR INCREASINGLY ELECTRONIC INTERACTIONS BETTER JUST AS THERE IS MORE TO ROBERT'S RULES OF ORDER THAN PARLIAMENTARY POLITENESS ELECTRONIC CONFERENCES AND CONVERSATIONS NEED TO DEVELOP THEIR OWN RULES OF ENGAGEMENT TO KEEP THE FOCUS ON PRODUCTIVITY HOW CAN ORGANIZATIONS HELP PREVENT THE NETWORK ODDITIES THAT UNDERMINE EFFECTIVE CONVERSATION HOW CAN THE TECHNOLOGY BETTER FACILITATE THE CONVERSATIONS THAT MATTER AS NETWORK TECHNOLOGIES RAPIDLY EVOLVE PEOPLE ARE ENERGETICALLY GRASPING FOR TOOLS THAT LET THEM BETTER STRUCTURE AND DEFINE THEIR RELATIONSHIPS ALREADY ONE HIGHLY REGARDED COMPUTER BULLETIN BOARD ON A MAJOR ONLINE SERVICE FEATURES A PROVOCATIVE OPTION POPULARLY CALLED A BOZO FILTER PARTICIPANTS HAVE THE OPTION OF SLAPPING ON A BOZO FILTER TO BLOCK OUT THE COMMENTS MADE BY ANYONE THEY CONSIDER TRITE BORING OR A NETWORK NUISANCE WHENEVER THEY LOG ON TO THE ONLINE CONVERSATION THEIR BOZO FILTER FLASHES TO LET THEM KNOW WHEN THEY'RE SCREENING OUT THE UNDESIRABLES NEEDLESS TO SAY DOZENS OF COMPANIES ARE QUIETLY BUT ENTHUSIASTICALLY EXPLORING HOW TO PUT BOZO FILTERS ON THEIR OWN SYSTEMS SHOULD A COMPANY OFFER BOZO FILTERS ON ITS NETWORKS SHOULD IT ENERGETICALLY PROMOTE THEIR USE AN EXCELLENT CASE CAN BE MADE EITHER WAY BUT WHEN THE RUMOR CIRCULATES THAT WHISPER WHISPER THE BOSS NOW BOZO FILTERS THE MARKETING VICE PRESIDENT THE POLITICS OF THAT COMPANY WILL CHANGE WHEN MANAGERS CHOOSE TO BOZO FILTER THEIR COLLEAGUES BUT NOT TO BE SURE THEIR BOSSES THE ROLE OF THE NETWORK FOR COORDINATION AND COLLABORATION IS RADICALLY TRANSFORMED AM I BEING BOZO FILTERED OR AM I JUST BEING PARANOID FURTHER COMPLICATING NETWORKMEDIATED RELATIONSHIPS IS THE GROWING ABILITY OF PREPROGRAMMED SOFTWARE TO SUBSTITUTE FOR ACTUAL HUMAN INTERACTION TECHNOLOGY CAN EASILY CREATE THE ILLUSION OF PERSONAL RESPONSE ON MANY NETWORKS FOR EXAMPLE IT'S A SNAP TO GET THE ELECTRONIC MAILBOX TO ACKNOWLEDGE RECEIPT OF A MESSAGE EVEN AS IT'S BEING CONSIGNED TO THE VIRTUAL GARBAGE CAN SAVVY MANAGERS ON CORPORATE NETWORKS ARE ALREADY PROGRAMMING THEIR PERSONAL COMPUTERS TO SEND TICKLER MEMOS THAT AUTOMATICALLY REMIND COLLEAGUES WHEN KEY ASSIGNMENTS ARE DUE ONE FORTUNE 1000 MANUFACTURING EXECUTIVE PREPARES DOZENS OF ELECTRONIC MAIL TICKLERS AS FAR AHEAD AS TWO QUARTERS IN ADVANCE TO KEEP HIS MANAGERS CONSTANTLY ON THEIR TOES IT'S A POWERFUL TECHNIQUE TO EXTEND CONTROL THE TICKLER RECIPIENT DOESN'T KNOW IF THE MESSAGE IS LIVE OR IF IT'S PREPROGRAMMED EITHER WAY A PROMPT REPLY IS EXPECTED UNLESS OF COURSE THE TICKLER HAS BEEN BOZO FILTERED WHAT'S HAPPENING IS THAT MANAGERS ON NETWORKS ARE LEARNING TO DELEGATE THEIR INTERACTIONS TO THEIR TECHNOLOGIES WHERE EXECUTIVES ONCE RELIED ON SECRETARIES AND STAFF ASSISTANTS TO HANDLE INQUIRIES SCHEDULE APPOINTMENTS AND ARRANGE MEETINGS THE RISE OF NETWORKS HAS CREATED A MARKETPLACE EAGER FOR COMPARABLE TECHNOLOGYMEDIATED SUPPORT MANAGERS ARE INCREASINGLY LOOKING FOR SOFTWARE AGENTS TO HELP RETRIEVE VITAL INFORMATION FROM THE CORPORATE DATABASE OR SCHEDULE THAT CONFERENCE CALL WITH A COLLEAGUE INDEED THE DESIGN OF INTELLIGENT NETWORK FILTERS AND AGENTS HAS BECOME ONE OF THE HOTTEST AREAS IN SOFTWARE DEVELOPMENT IT'S POSSIBLE THAT ONE DAY MANAGERS WILL BE EVALUATED AS MUCH BY HOW WELL THEY DELEGATE TASKS TO THEIR TECHNOLOGIES AS BY HOW WELL THEY DELEGATE TO COWORKERS BUT AT THE HEART OF ALL THESE NETWORK COMMUNICATIONS IS THE NEED FOR MANAGERS TO BOTH COORDINATE AND COLLABORATE TO GET THE JOB DONE ORGANIZATIONAL NETWORKS WILL INCREASINGLY RUN SOFTWARE THAT FACILITATES COMPUTER CONFERENCING SOME OF THIS SOFTWARE WILL BE LIFTED RIGHT OUT OF ROBERT'S RULES OF ORDER OTHER PACKAGES WILL TRACK THE FLOW OF COMMENTS AND DROP IN QUESTIONS AND PROMPTS DEPENDING ON WHETHER THE GROUP IS TRYING TO MANAGE A PROJECT OR MEET A BUDGET THE SOFTWARE WILL PROVIDE A FRAMEWORK A DISCIPLINE FOR FOCUSING THE CONVERSATIONS ON THE TASKS AT HAND INCREASING COMPUTER CONNECTIVITY DOESN'T NECESSARILY EQUAL INCREASED ORGANIZATIONAL PRODUCTIVITY TOMORROW'S DESIGN CHALLENGE DOESN'T REVOLVE AROUND BUILDING NETWORKS IT REVOLVES AROUND DESIGNING WORKNETS NETWORKS ARE A WONDERFUL MEDIUM FOR COMMUNICATION BUT WORKNETS ARE THE MEDIUM FOR MANAGING WORK CREATING THE TOOLS THAT HELP PEOPLE BETTER MANAGE AND MEDIATE THEIR ELECTRONIC INTERACTIONS IS ESSENTIAL TO MAKING WORKNETS HAPPEN MR SCHRAGE EXPLORES ORGANIZATIONAL MEDIA AS A RESEARCH ASSOCIATE WITH THE SLOAN SCHOOL'S CENTER FOR COORDINATION SCIENCE AT MIT 9311290097 931129 GRUPO TELEVISA PLANS INTERNATIONAL OFFERING FOR ITS CERTIFICATES SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY MEXICAN MEDIA COMPANY GRUPO TELEVISA SAID A PLANNED STOCK ISSUE VALUED AT ABOUT 920 MILLION WILL PROCEED ON DEC 14 THE OFFERING WHICH WAS APPROVED BY THE BOARD IN MIDSEPTEMBER WILL CONSIST OF 309 MILLION CERTIFICATES OF ORDINARY PARTICIPATION OR CPOS THE ISSUE WILL TAKE PLACE SIMULTANEOUSLY IN MEXICO EUROPE AND THE US THE MAJORITY 65 OF THE ISSUE WILL BE OFFERED IN NEW YORK WHERE GOLDMAN SACHS WILL BE LEAD MANAGER AN ADDITIONAL 19 OR 57 MILLION CPOS WILL BE OFFERED IN EUROPEAN MARKETS AND THE BALANCE WILL BE OFFERED IN MEXICO A GRUPO TELEVISA SPOKESMAN SAID THE FINAL PRICE FOR THE ISSUE WILL BE SET DEC 13 AND ANALYSTS ARE PREDICTING A PRICE OF BETWEEN 2977 AND 3070 A CPO GRUPO TELEVISA WOULD NET A TOTAL OF BETWEEN 920 MILLION AND 950 MILLION AS REPORTED THE ISSUE FORMS PART OF A 3FOR1 STOCK SPLIT THAT WILL BOOST TOTAL STOCK TO 927 MILLION SHARES FROM THE CURRENT 309 MILLION SHARES SERIES A SHARES WILL REPRESENT 51 OF THE TOTAL AND SERIES L SHARES THOSE AVAILABLE TO FOREIGN INVESTORS WITH LIMITED VOTING RIGHTS 25 THE BALANCE OF SHARES WILL BE SERIES D STOCK OR DIVIDEND PREMIUM SHARES WHICH WILL RECEIVE A FIXED DIVIDEND AND HAVE NO PAR VALUE FOR 10 YEARS THE THREE SHARES WILL TRADE AS ONE SECURITY REPRESENTED BY ONE CPO 9311290096 931129 THYSSEN SPOKESMAN DECLINES TO COMMENT ON DIVIDEND REPORT SPECIAL TO THE WALL STREET JOURNAL DUSSELDORF GERMANY STEEL TRADING AND ENGINEERING GROUP THYSSEN AG HAD NO COMMENT FRIDAY ON A REPORT IN THE NEWSPAPER HANDELSBLATT THAT MANAGEMENT WOULD PROPOSE A DIVIDEND OMISSION FOR THE FISCAL YEAR ENDED SEPT 30 I CANNOT COMMENT ON THIS REPORT A THYSSEN SPOKESMAN SAID ASKED IF THIS MEANT THAT HE WOULDN'T DENY THE REPORT HE SAID NO COMMENT IS ALSO NOT A DENIAL THYSSEN PAID A DIVIDEND OF SIX MARKS PER SHARE 352 FOR THE PRIOR FISCAL YEAR DOWN FROM 10 MARKS THE YEAR BEFORE THE SPOKESMAN SAID THYSSEN PLANS TO RELEASE THIS WEEK A PRELIMINARY EARNINGS REPORT FOR THE RECENTLY ENDED FISCAL YEAR HE SAID THE REPORT WOULD CONTAIN MANAGEMENT'S DIVIDEND RECOMMENDATION TO BE CONSIDERED BY THE COMPANY'S BOARD AT A MEETING JAN 21 1994 HANDELSBLATT REPORTED THAT THYSSEN'S MANAGEMENT HAS DECIDED TO RECOMMEND A DIVIDEND OMISSION THE PAPER DIDN'T NAME ITS SOURCE THYSSEN HAS BEEN STRUGGLING IN A DEPRESSED EUROPEAN MARKET ANNOUNCEMENTS EARLIER THIS YEAR THAT THE COMPANY WOULD CUT 10000 OF 35000 JOBS IN ITS STEEL UNIT THYSSEN STAHL AG SPARKED PROTESTS BY UNION MEMBERS AT THE STEEL UNIT'S DUISBURG GERMANY HEADQUARTERS 9311290095 931129 HENKEL PRETAX PROFIT FOR NINE MONTHS FELL DUE TO RESTRUCTURING SPECIAL TO THE WALL STREET JOURNAL DUESSELDORF GERMANY HENKEL KGAA A GERMAN CHEMICALS DETERGENTS AND PERSONALCARE COMPANY REPORTED THAT NINEMONTH PRETAX PROFIT DROPPED 16 TO 422 MILLION MARKS 2477 MILLION EVEN THOUGH SALES FOR THE PERIOD FELL ONLY 21 TO 1047 BILLION MARKS HENKEL BLAMED RESTRUCTURING COSTS CONNECTED WITH JOB CUTS FOR THE DEPRESSED RESULTS NOTING THAT WITHOUT THESE COSTS PRETAX PROFIT WOULD HAVE BEEN NEAR LAST YEAR'S LEVEL HENKEL SAID THE RESTRUCTURING COSTS ARE EXPECTED TO CONTINUE INTO NEXT YEAR IN THE FIRST NINE MONTHS OF 1993 ABOUT 1000 JOBS WERE CUT WORLDWIDE AND ANOTHER 1000 ARE EXPECTED TO BE DROPPED DURING 1994 THE COMPANY SAID DOMESTIC UNITS FARED BETTER THAN OVERSEAS SUBSIDIARIES WITH A SALES DECREASE OF 21 FOR THE PERIOD COMPARED WITH A DROP OF 25 FOR THE COMPANY'S FOREIGN OPERATIONS THE REPORT SAID HENKEL SAID EXPORTS WERE UP 14 FOR THE PERIOD THE COMPANY ALSO HINTED THAT ITS DIVIDEND FOR 1993 WON'T CHANGE DESPITE AN EXPECTED 10 DROP IN PROFIT FOR THE FULL YEAR HENKEL PAID A DIVIDEND OF SEVEN MARKS 411 A COMMON SHARE FOR 1992 AND 10 MARKS A PREFERRED SHARE THE DIVIDEND FOR 1992 WAS UNCHANGED FROM THE PREVIOUS YEAR 9311290094 931129 INTERNATIONAL SPAIN'S JOBLESS RATE RISES MADRID SPAIN'S UNEMPLOYMENT RATE EDGED UP TO 23 IN THE THIRD QUARTER FROM 223 IN THE SECOND QUARTER THE NATIONAL STATISTICS INSTITUTE SAID THE NUMBER OF UNEMPLOYED INCLUDING FIRSTTIME JOB SEEKERS CLIMBED TO 36 MILLION IN THE THIRD QUARTER FROM 34 MILLION IN THE SECOND QUARTER THE INSTITUTE PUBLISHES UNEMPLOYMENT FIGURES ON A QUARTERLY BASIS BASED ON THE RESULTS OF A SURVEY OF 63000 FAMILIES THROUGHOUT SPAIN ECONOMISTS CITE THE FIGURES AS MORE ACCURATE THAN JOBLESS CLAIMS PROVIDED BY THE LABOR MINISTRY ACCORDING TO LABOR MINISTRY FIGURES BASED ON THE NUMBER OF PEOPLE REGISTERED FOR UNEMPLOYMENT BENEFITS THE JOBLESS RATE ROSE TO 172 IN OCTOBER FROM 166 IN SEPTEMBER 9311290093 931129 LEISURE & ARTS TELEVISION DOG DAY EVENINGS BY DOROTHY RABINOWITZ IT IS REASONABLE MOST OF THE TIME TO BE SUSPICIOUS OF HOLIDAY SEASON DRAMAS ESPECIALLY THE KIND THAT CONCERN NEWLY BEREFT ELDERLY WIDOWERS THE NEWEST HALLMARK HALL OF FAME PRESENTATION AIRING SUNDAY IS ABOUT THIS SUBJECT PRECISELY AND WITH A DOG THROWN IN EVERY SUSPICION ONE SHOULD HAVE ABOUT TO DANCE WITH THE WHITE DOG DECEMBER 5 911 PM ON CBS IE AS REGARDS THE EXPECTED HIGH LEVELS OF POIGNANT UPLIFT IS WELL BORNE OUT THIS ALSO TURNS OUT TO BE ONE OF THE BETTER HALLMARK DRAMAS TO COME ALONG IN A WHILE THANKS IN GREAT PART TO PERFORMANCES BY HUME CRONYN AS SAM THE WIDOWER AND JESSICA TANDY AS CORA SAM'S BELOVED RECENTLY DEPARTED WIFE AND LET US NOT FORGET THE DOG A LUMINOUS TALENT RIGHT UP THERE WITH THESE TWO STARS ONLY SO SERENE AND TALENTED A VETERAN AS MR CRONYN COULD INDEED TOLERATE THE KIND OF SCENESTEALING PERPETRATED BY THIS RAVISHING CREATURE KNOWN ONLY AS THE WHITE DOG THE DOG IT SEEMS HAS APPEARED OUT OF NOWHERE TO THE BEREAVED SAM AND ONLY TO HIM THIS CAUSES NO END OF TROUBLE FOR SAM AND HIS DEVOTED IF OFFICIOUS DAUGHTERS WHO ARE CONVINCED THEIR FATHER IS HALLUCINATING THESE SCOLDS ALSO WANT TO KEEP THEIR FATHER FROM CONTINUING TO WORK HIS LAND AND GENERALLY FROM DOING JUST AS HE WISHES BUT THE RATIONALLY FEARFUL WILL BE RELIEVED TO LEARN THAT THIS IS ONE OLD MAN WHO DOESN'T PACK HIS WALKER AND GO OFF TO PARIS TO ASSERT THE VIGOR AND DIGNITY OF OLD AGE OR TO CONQUER OTHER WORLDS HE IS A SICK MAN ALL RIGHT AND IN PAIN THE NOVEL BY TERRY KAY ON WHICH THIS TALE IS BASED AND THE SCRIPT BY SUSAN COOPER MAKE NO BONES ABOUT THAT TRUE MR CRONYN IS FOR BETTER OR WORSE NOT AN ACTOR MUCH GIVEN TO TRANSMITTING DESOLATION EVEN WHEN AS HERE WIDOWER SAM IS FEELING AT HIS WORST THAT CRACKLY PERKINESS NOW IMPRINTED ON THE CRONYN PERSONA COMES SHINING THROUGH JESSICA TANDY WHO APPEARS WITH CONSIDERABLE FREQUENCY FOR A DEPARTED WIFE EXUDES HER USUAL AUTHORITY SEE THE CENTRAL ROMANTIC SCENE WHERE SHE MANAGES SO MASTERFULLY TO CONJURE UP THE RADIANT BEAUTY AND EXCITEMENT OF A VERY YOUNG WOMAN IN LOVE IN A GENERALLY FINE SUPPORTING CAST FRANK WHALEY STANDS OUT IN THE ROLE OF THE PERCEPTIVE AND KINDLY SON AS FOR WHITE DOG A FEMALE AS BEFITS HER PARTICULAR SPIRITUAL ROLE HERE IT IS CLEAR THAT A STAR HAS BEEN BORN SHE AND MR CRONYN AND MS TANDY ARE TOGETHER GOING TO SET MORE TEARS THE HAPPY SORT FLOWING THAN ANYTHING ELSE LIKELY TO APPEAR ON THE SCREEN THIS SEASON DOGS TALENTED AND OTHERWISE ARE SUBJECTED TO MUCH MORE SCRUTINY AND TO MUCH LESS EFFECT IN THE SIXPART SERIES TITLED DOGS BEGINNING SUNDAY ON ARTS & ENTERTAINMENT 810 PM AND CONTINUING IN ONEHOUR EPISODES THROUGH THE NEXT FOUR NIGHTS COMPOSED OF BITS OF LORE FROM HERE THERE AND AROUND THE WORLD THIS IS MUCH OF THE TIME A MESS OF A KIBBLE WHOSE PRODUCERS EVIDENTLY DECIDED THAT THE WAY TO DO THE SERIES WAS TO THROW IN A LITTLE OF EVERYTHING ESPECIALLY EVERYTHING THAT COULD CONCEIVABLY PROVIDE A TOUCH OF CANYOUTOPTHIS WEIRDNESS THE RESULTING PROGRAM HAS ITS ENTERTAINING AND INSTRUCTIVE MOMENTS MOMENTS IN A QUITE LITERAL SENSE BECAUSE THE NARRATIVE SCARCELY LIGHTS ON ONE SUBJECT THAN IT IS OFF TO ANOTHER IT TAKES US TO BEIJING WHERE DOGS ARE TYRANNICALLY PROHIBITED ON TO JAPAN WHERE THINGS ARE FAR BETTER FOR BELOVED CANINES AND WHERE INDEED SHINTO TEMPLES HOLD SERVICES FOR THOSE DECEASED THEN IT'S OFF TO GREENLAND WHERE HUSKIES ARE SHOWN GAINFULLY EMPLOYED AND WHERE THE PACKDRIVER TESTIFIES TO HIS LOVE FOR THESE WORTHY CREATURES THEY MUST HE ALSO INFORMS US ALL BE SHOT AT AGE FIVE TO MAKE ROOM FOR NEW AND HEALTHIER DOGS IN THE STILL WILDER OUTPOSTS OF BEVERLY HILLS AN AFFLUENT MIDDLEAGED COUPLE SHOW OFF THE HAIRLESS CHINESE CRESTED CENTRAL TO THEIR LIVES AND APPARENTLY THEIR MARRIAGE BED THE OWNER DISPLAYS THE DOG'S FUR COAT BOOTIES AND JACKET AS WELL AS AN EXTENSIVE SUPPLY OF TSHIRTS WITH A FULL COMPLEMENT OF THE SORT OF WIT AND WISDOM ONE TENDS TO FIND ON TSHIRTS THERE ARE REASONS THIS DOG LOOKS A BIT DOLEFUL THE HIGHLIGHT OF THIS SEGMENT AND IT IS ONE THAT TELLS MORE ABOUT THE SIREN CALL OF TWO MINUTES OF TV FAME THAN IT DOES ABOUT DOGS SHOWS THE COUPLE OBEDIENTLY POSING IN BED FOR THE FILMMAKER THE DOG SANDWICHED BETWEEN THEM THE HUSBAND A LARGE DIGNIFIED LOOKING MAN EVEN WHEN CLAD IN HIS PAJAMAS JOKES SOMEWHAT SHEEPISHLY IF THAT IS THE WORD THAT HE HASN'T BEEN ABLE TO GET NEAR HIS WIFE SINCE THE DOG CAME HEY TV FAME DOESN'T COME CHEAP ITS INCOHERENCE AND THE CHILDLIKE SIMPLICITY OF TONE THAT PRODUCERS FOR SOME REASON REGARD AS FITTING FOR NATURE DOCUMENTARIES DETRACT HEAVILY FROM THIS SERIES STILL THERE IS MUCH COMPELLING DOG DATA HERE AS WELL OF COURSE AS MUCH RECEIVED WISDOM ONE EXPERT OPINES THAT PEOPLE LOVE THEIR DOGS BECAUSE THEY GIVE UNCRITICAL LOVE A TERM THAT SHOULD TURN ANY STOMACH DOG OR HUMAN AND BECAUSE THEY CAN'T TALK BACK THE DISPENSERS OF THIS WISDOM SEEM NOT TO HAVE NOTICED THAT DOG OWNERS WOULD CLEARLY LOVE THE ANIMAL TO SAY A WORD OR TWO AND OFTEN BELIEVE THEY CAN DO SO INDEED A STUDY SOME YEARS BACK AUTHORITATIVELY REPORTED THAT ABOUT 90 OF THE PEOPLE WHO OWNED DOGS TALKED TO THEM AND THAT THE OTHER 10 WERE LYING ABOUT IT THE SAME DISPENSER OF THE IDEA THAT DOGS LOVE UNCRITICALLY HAS FAILED APPARENTLY TO NOTICE HOW CRITICAL A DOG CAN GET FOR INSTANCE ONE RUDOLPH RESIDENT OF THIS HOUSEHOLD STALKS POINTEDLY OUT OF HEARING RANGE THE MOMENT THE SUNDAY MORNING POLITICAL TALK SHOWS BEGIN HE HAS MOREOVER TAKEN A PARTICULAR DISLIKE TO SEN HOWARD METZENBAUM AND ATTORNEY GENERAL JANET RENO WHOSE THOUGHTFUL CADENCES SEND HIM HEADLONG FROM THE ROOM ON THE OTHER HAND AS EVIDENCE OF HIS NONPARTISANSHIP HE SEEMS TO HAVE TAKEN TO MR CLINTON WHOM HE REGARDS DURING PRESIDENTIAL APPEARANCES WITH A FIXED FASCINATED STARE DOGS IN SHORT HAVE A LOT ON THEIR MINDS MONITOR YOURS CAREFULLY AND SPARE THEM THE PART ABOUT THE BOOTIES AND KOREAN CUISINE 9311290092 931129 THAI AIRWAYS REPORTS NET INCOME FELL 67 FOR THE FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL BANGKOK NET INCOME AT THAI AIRWAYS INTERNATIONAL TUMBLED 67 IN THE FISCAL YEAR ENDED SEPT 30 TO 102 BILLION BAHT 401 MILLION FROM 307 BILLION BAHT A YEAR EARLIER THE STOCK EXCHANGE OF THAILAND SAID THE RESULTS COVER THE FIRST FULL YEAR OF OPERATION SINCE THE THAI NATIONAL CARRIER WAS PRIVATIZED AND BEGAN TO TRADE IN 1992 OPERATING PROFIT FOR THE YEAR WAS 463 BILLION BAHT DOWN 26 FROM 1992'S 476 BILLION BAHT OPERATING REVENUE FOR THE YEAR WAS 5858 BILLION BAHT UP 65 FROM A YEAREARLIER 5503 BILLION BAHT THE COMPANY REPORTED PRETAX PROFIT OF 138 BILLION BAHT DOWN 68 FROM 438 BILLION BAHT HOWEVER ACCORDING TO THE OTHER FIGURES RELEASED PRETAX PROFIT WOULD HAVE FALLEN 98 TO 80 MILLION BAHT THAI AIRWAYS OFFICIALS SAID THEY COULDN'T IMMEDIATELY EXPLAIN THE DISCREPANCY 9311290091 931129 SPORTS MINORLEAGUE HOCKEY GAINS NEW POPULARITY BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MINORLEAGUE HOCKEY IS SKATING INTO THE BIG LEAGUES OF SPORTS POPULARITY AFTER A HALF CENTURY OF SLOW GROWTH PROFESSIONAL MINORLEAGUE HOCKEY IS RESURGING NEW LEAGUES ARE FORMING AND ONCEDEFUNCT ONES ARE REAPPEARING ON THE RINK IN JUST FIVE YEARS AVERAGE GAME ATTENDANCE AT THE 49YEAROLD INTERNATIONAL HOCKEY LEAGUE JUMPED 124 TO MORE THAN 6500 FANS A GAME MEANWHILE FRANCHISES WITH THE FIVEYEAROLD EAST COAST HOCKEY LEAGUE NOW COST ABOUT 2 MILLION UP FROM ABOUT 25000 WHEN THE LEAGUE STARTED ALL IT TAKES IS A LITTLE MARKETING THE LAS VEGAS THUNDER HAS A POPULAR POLARBEAR MASCOT MODELED AFTER BASEBALL'S FAMOUS SAN DIEGO CHICKEN OTHER TEAMS LURE FANS WITH NIGHTLY TSHIRT OR BASEBALLCAP GIVEAWAYS OR FREE POSTGAME CONCERTS THE ATLANTA KNIGHTS FEATURE HUMAN SLED RACES BETWEEN PERIODS ATLANTA LIKE OTHER WARMER LOCALES HASN'T EXACTLY BEEN A HOTBED FOR HOCKEY SO THE KNIGHTS SPONSORED A STREET HOCKEY LEAGUE THIS PAST SUMMER AND PLAN TO TAKE A CARAVAN AROUND THE STATE TO TEACH YOUNGSTERS THE GAME NEXT SUMMER THERE'S A GROWING REALIZATION THAT NOT ONLY ARE WE IN THE PROFESSIONAL SPORTS BUSINESS BUT ALSO WE ARE IN THE ENTERTAINMENT BUSINESS SAYS DOUG KIRCHHOFER PRESIDENT AND GENERAL MANAGER OF THE INTERNATIONAL LEAGUE'S CINCINNATI CYCLONES WHICH HELD A BIKINI CONTEST AFTER ONE GAME IT HASN'T BEEN SMOOTH SKATING FOR THE MINOR LEAGUES THE AMERICAN HOCKEY LEAGUE WHOSE PLAYERS ARE CONSIDERED A STEP DOWN FROM HOCKEY'S ONLY MAJOR LEAGUE THE NATIONAL HOCKEY LEAGUE STARTED IN THE 1930S SHORTLY BEFORE THE INTERNATIONAL HOCKEY LEAGUE STARTED BUT FOR YEARS TEAMS AND LEAGUES POPPED UP ACROSS THE COUNTRY AND THEN COLLAPSED THEY ARE BEING BUILT UP TODAY BY A NEW BREED OF OWNER AND FRANCHISE EXECUTIVE MANY OF WHOM OWNED OR WERE AFFILIATED WITH BASEBALL AND BASKETBALL LEAGUES AND TEAMS HANK STICKNEY WHO OWNS TWO MINORLEAGUE BASEBALL TEAMS AND MINORLEAGUE HOCKEY'S LAS VEGAS THUNDER MAKES SURE PLAYERS STICK AROUND TO SIGN AUTOGRAPHS ONCE UPON A TIME HOCKEY FANS OWNED HOCKEY TEAMS NOW YOU HAVE MARKETING PEOPLE OWNING HOCKEY TEAMS SAYS RAY COMPTON FORMERLY VICE PRESIDENT OF MARKETING FOR THE NATIONAL BASKETBALL ASSOCIATION'S INDIANA PACERS AND NOW PRESIDENT OF THE INDIANAPOLIS ICE WHEN THE ICE FEATURED THE 1970SERA BAND THE VILLAGE PEOPLE WE HAD TO TURN PEOPLE AWAY MR COMPTON SAYS ANOTHER MINORLEAGUE DRAW IS PRICE WHILE NHL TICKETS COST MORE THAN 25 GOOD SEATS AT MOST MINORLEAGUE HOCKEY GAMES SELL FOR LESS THAN 10 EACH THE MINOR LEAGUES HAVE HELD PRICES DOWN BY CONTAINING COSTS THE CENTRAL HOCKEY LEAGUE OWNS ALL ITS TEAMS AND CAN BUY EQUIPMENT IN BULK AT DISCOUNTS AND IT RESTRICTS ITS ACTIVITIES TO ONE REGION TEXAS OKLAHOMA KANSAS AND TENNESSEE ENABLING TEAMS TO TRAVEL BY BUS THE AMERICAN HOCKEY LEAGUE HOLDS DOWN THE NUMBER OF GAMES BETWEEN US TEAMS AND SOME CANADIAN TEAMS TO KEEP A LID ON TRAVEL BUDGETS SAYS JACK A BUTTERFIELD PRESIDENT MEANWHILE THE EAST COAST HOCKEY LEAGUE HAS A SALARY CAP OF 5000 A WEEK PER TEAM OTHER MINORLEAGUE TEAMS HAVE PLAYERS WHO HAVE CONTRACTS WITH NHL TEAMS WHICH PAY THE BULK OF THE PLAYER'S SALARY IN RETURN FOR A FEE MOREOVER EAST COAST HOCKEY LEAGUE TEAMS CAN ONLY HAVE THREE PLAYERS WHO HAVE PLAYED THE SPORT PROFESSIONALLY MORE THAN THREE YEARS AND WHO THEREFORE USUALLY COMMAND HIGHER SALARIES THE CHURNING PROVIDES ANOTHER DIVIDEND YOUNGER PLAYERS ANXIOUS FOR THEIR TIME IN THE NHL ENGAGE IN A FAST HARDHITTING GAME WE WANT A PLAYER TO BE HUNGRY TO GET OUT OF THIS LEAGUE SAYS PATRICK J KELLY COMMISSIONER OF THE EAST COAST HOCKEY LEAGUE THEY ALSO TEND TO MAKE A LOT OF MISTAKES WHICH ISN'T ALL BAD SAYS RAY MIRON CENTRAL HOCKEY LEAGUE PRESIDENT YOUNGER PLAYERS TAKE MORE SHOTS ON GOAL MAKING THE GAME MORE EXCITING HE NOTES YET THERE ARE SIGNS OF LARGESS CREEPING INTO MINORLEAGUE HOCKEY THE LAS VEGAS THUNDER WENT ABOVE THE INTERNATIONAL HOCKEY LEAGUE AVERAGE SALARY OF 42000 TO ATTRACT TOP TALENT WHICH COULD SPARK BIDDING WARS HIGHER FRANCHISE FEES WILL MAKE IT TOUGHER FOR OWNERS TO TURN A PROFIT AND SEEING MINORLEAGUE HOCKEY'S SUCCESS NHL AFFILIATES ARE DEMANDING BIGGER PAYMENTS ALL THESE TRENDS COULD LEAD TO STEEPER TICKET PRICES WHICH IN TURN COULD HOBBLE ATTENDANCE BUT NO ONE SEEMS WORRIED THE IHL ADDED A FRANCHISE IN LAS VEGAS THIS YEAR PLANS TO ADD ONE IN DENVER NEXT SEASON AND IS TALKING TO INVESTOR GROUPS IN HOUSTON AND SAN FRANCISCO THE EAST COAST LEAGUE WHICH HAS 19 TEAMS UP FROM FIVE IN 1988 HAS CAPPED THE NUMBER OF TEAMS AT 20 BUT MR KELLY POINTS OUT THAT THE LEAGUE ALSO ONCE SET A CAP AT 16 THIS EXPLOSION AT THE MINORLEAGUE LEVEL COULD PROVIDE PAYOFFS FOR THE NHL IN MANY PARTS OF THE NATION HOCKEY IS VIEWED AS AN ALSORAN TO BASKETBALL BASEBALL AND FOOTBALL WE'RE CREATING A BASE FOR HOCKEY TO BECOME A NATIONAL SPORT SAYS MILES WOLFF WHO OWNS THE RALEIGH NC ICECAPS IN THE EAST COAST HOCKEY LEAGUE HOCKEY IS ALMOST LIKE THE LAST FRONTIER ADDS INDIANOPOLIS ICE'S MR COMPTON IT'S THE ONE AREA OF THE FOUR MAJOR SPORTS WHERE THERE'S STILL ROOM FOR GROWTH 9311290090 931129 BANK OF BOSTON TO SETTLE MORTGAGE SUIT CHARGING EXCESS ESCROW HOLDING BOSTON BANK OF BOSTON CORP SAID IT EXPECTS TO SETTLE A LAWSUIT FILED LAST WEEK BY FLORIDA'S ATTORNEY GENERAL CHARGING THE BANK'S MORTGAGE UNIT WITH HOLDING MORE THAN NECESSARY IN ESCROW ACCOUNTS THE DISPUTE ECHOES CASES FILED IN MORE THAN A DOZEN STATES IN WHICH BANKS AND MORTGAGE COMPANIES ARE BEING PRESSED TO CHANGE ACCOUNTING METHODS FOR ESCROW FUNDS PAID MONTHLY BY HOMEOWNERS THE FUNDS ARE USED TO COVER INSURANCE AND PROPERTY TAXES ATTORNEYS GENERAL AND CONSUMER ADVOCATES SUCCESSFULLY HAVE ARGUED IN THESE CASES FOR CHANGING TO AGGREGATE ACCOUNTING METHODS EFFECTIVELY CUTTING THE AMOUNT HELD FROM MONTH TO MONTH BY BANKS THE SETTLEMENTS FOLLOWED AN INVESTIGATION BY SEVERAL STATES THAT FOUND THAT MANY LENDERS REQUIRE HOMEOWNERS TO PAY MORE THAN NECESSARY INTO THE ESCROW ACCOUNTS OFTEN LITTLE OR NO INTEREST IS PAID TO THE CONSUMER BY THE LENDER ON THE FUNDS HELD IN ESCROW A BANK OF BOSTON SPOKESWOMAN SAID THE FLORIDA CASE ALLEGING 55 MILLION OF EXCESS RESERVES FROM SOME 80000 HOMEOWNERS ISN'T EXPECTED TO INVOLVE PENALTIES OR BE MATERIAL TO FINANCIAL RESULTS MOST OF THESE CASES ARE BEING SETTLED BY GOING TO AGGREGATE ACCOUNTING SHE SAID LENDERS THAT HAVE SETTLED INCLUDE GENERAL MOTORS CORP'S FINANCE UNIT AND FLEET FINANCIAL GROUP INC 9311290089 931129 MITSUI & CO LAUNCHES FINANCING UNIT FOR LEASING SMALLTICKET CAPITAL GOODS BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO PAUL A RENNER IS A BIG GREGARIOUS MAN WHO IS SOMETIMES INTRODUCED TO JAPANESE CLIENTS BY HIS NEW BOSS AS A RETIRED SUMO WRESTLER THE BOSS PETER K NEVITT IS JUST KIDDING BUT BOTH MEN ARE SERIOUS ON THE TOPIC OF WRESTLING ABOUT 1 BILLION OF BUSINESS AWAY FROM BANKS AND FINANCIAL FIRMS THAT SUPPLY LEASE FINANCING FOR RELATIVELY SMALLTICKET CAPITAL GOODS SUCH AS MACHINE TOOLS AND MEDICAL EQUIPMENT THEY ARE TARGETING CUSTOMERS OF BOTH US AND JAPANESE MANUFACTURERS MITSUI LEASING & DEVELOPMENT LTD A UNIT OF THE HUGE JAPANESE TRADING COMPANY MITSUI & CO LTD ANNOUNCED FRIDAY THAT IT HAS FORMED A NEW COMPANY MITSUI VENDOR LEASING USA INC MR NEVITT 66 YEARS OLD WILL SERVE AS CHAIRMAN AND MR RENNER 46 AS CHIEF EXECUTIVE OFFICER BOTH MEN WORKED AT VARIOUS TIMES IN THEIR CAREERS FOR BANKAMERICA CORP AS DID STEPHEN G DOWNS WHO BECOMES MITSUI VENDOR LEASING'S SENIOR VICE PRESIDENT SALES AND MARKETING MR NEVITT LEFT BANKAMERICA IN 1988 TO BECOME CHIEF EXECUTIVE OFFICER OF MITSUINEVITT CAPITAL CORP ANOTHER MITSUI UNIT THAT PROVIDES FINANCING FOR MANAGEMENT BUYOUTS AND OTHER HIGHLY LEVERAGED TRANSACTIONS MR NEVITT SAID THAT PROVIDING LEASE FINANCING FOR CAPITAL EQUIPMENT PRICED ROUGHLY FROM 75000 TO 200000 IS AN AREA NEGLECTED BY US LENDERS AN OPPORTUNITY WAS CREATED BECAUSE SOME OF THE BANKS IN THIS BUSINESS DROPPED OUT AND SOME OF THE LEASING COMPANIES HAVE BECOME LESS ACTIVE MR NEVITT SAID THERE IS A REAL NEED OUT THERE FOR THIS KIND OF FINANCING HE RELIED BEFORE UPON THE FICKLE NATURE OF BANKS TO START MITSUICAPITAL WHICH FINANCED HIGHLY LEVERAGED TRANSACTIONS AFTER BANKS BEGAN TO SHUN THEM HE BUILT UP ASSETS OF ABOUT 850 MILLION BEFORE THE PUBLIC MARKETS AND BANKS STARTED FINANCING THESE TYPES OF TRANSACTIONS AGAIN CAUSING THE PORTFOLIO TO EASE TO ABOUT 700 MILLION OF ASSETS BANKS HAVE THE MEMORY OF A WELLEDUCATED TURNIP MR NEVITT NOTES BEFORE THEY REMEMBER WHAT A GOOD BUSINESS VENDOR LEASING CAN BE HE HOPES MR RENNER CAN BUILD MITSUI VENDOR LEASING TO ABOUT 600 MILLION OF ASSETS WITHIN THREE YEARS AND ABOUT 1 BILLION IN ABOUT FIVE YEARS LEASING PROVIDES READYMADE FINANCING FOR THE CUSTOMER WHO DOESN'T HAVE TO GO TO BANKS OR USE INTERNALLY GENERATED FUNDS TO BUY NEW EQUIPMENT MR NEVITT SAID SINCE THE EQUIPMENT IS REVENUEGENERATING IT IS EXPECTED TO PAY FOR ITSELF DURING THE LIFE OF THE LEASE MR NEVITT SAID MAJOR US COMPANIES SUCH AS CIT GROUP HOLDINGS INC HELLER FINANCIAL INC AND GENERAL ELECTRIC CO'S GE CAPITAL CORP PROVIDE VENDOR FINANCING BUT THEIR VENDOR LEASING OPERATIONS AREN'T GIANT SIZE VENDOR LEASING IS JUST ONE DEPARTMENT FOR THEM THEY DO A GOOD JOB AT IT BUT THERE'S LOTS OF ROOM FOR A NEW COMPANY WITH OUR CAPITAL RESOURCES MITSUI VENDOR LEASING PLANS TO PROVIDE FINANCING EITHER DIRECTLY TO THE END CUSTOMER OR TO THE MANUFACTURER SO THAT THE LEASING COMPANY IS IN EFFECT INVISIBLE TO THE CUSTOMER THE LEASED EQUIPMENT WILL IN ABOUT 80 OF THE CASES END UP BEING BOUGHT BY THE CUSTOMER WHEN THE LEASE EXPIRES FOR A NOMINAL AMOUNT IN OTHER CASES MITSUI WOULD RESELL THE EQUIPMENT AFTER EXPIRATION OF LEASE THE LEASING CONCERN IS LOOKING FOR MANUFACTURERS OR DEALERS WHO COULD EACH GENERATE 5 MILLION TO 6 MILLION A YEAR IN BUSINESS MR NEVITT SAID THE FIRM ALREADY HAS ONE OR TWO CLIENTS MITSUI VENDOR LEASING IS 951 OWNED BY MITSUI LEASING & DEVELOPMENT WITH THE REMAINING STAKE OWNED BY SAKURA BANK OF JAPAN ITS OWN FINANCING WILL BE SUPPLIED BY BANK LINES OF CREDIT INCLUDING ONE FROM SAKURA AND EVENTUALLY IT WILL SECURITIZE SOME OF THE LEASES IT OWNS MR NEVITT SAID 9311290088 931129 TIGHTFISTED SHOPPERS KICK OFF HOLIDAY SEASON A WALL STREET JOURNAL ROUNDUP CHRISTMAS SHOPPERS LAUNCHED THE HOLIDAY SEASON WITH STEELYEYED BARGAIN HUNTING LOTS OF WINDOW SHOPPING AND ONLY CAUTIOUS SPENDING DURING THE BELLWETHER WEEKEND AFTER THANKSGIVING THE NATION'S RETAILERS SAID THEY RANG UP RESPECTABLE SALES GAINS LAST YEAR THE PRESIDENTIAL ELECTION TRIGGERED AN UNEXPECTEDLY STRONG CHRISTMAS SPENDING SPREE BUT HOLIDAY SHOPPERS AT THE START OF THE 1993 SEASON STRESSED THAT WHILE THEY WERE ENCOURAGED BY LOW INTEREST RATES AND IMPROVEMENT IN THEIR OWN FINANCIAL SITUATIONS THEY WERE LOOKING FOR BARGAINS I JUST GOT A RAISE SO I HAVE MORE MONEY TO SPEND SAID JIM BANEY TOTING BAGS FROM LORD & TAYLOR AND FAO SCHWARZ AS HE SHOPPED IN NEW YORK BUT HIS COMPANION SHARON GIFFORD SAID I WON'T BUY ANYTHING UNLESS IT'S ON SALE IN ONE SIGN THAT SHOPPERS ARE GUARDING THEIR PENNIES VISA HOLIDAY SPENDTRAK DATA SHOW TRANSACTIONS AT DISCOUNT STORES FRIDAY AND SATURDAY ACCOUNTED FOR MORE THAN 14 OF TOTAL RETAIL TRANSACTIONS ON THOSE TWO DAYS IN THE MONTHLONG HOLIDAY SHOPPING PERIOD LAST YEAR DISCOUNTERS ACCOUNTED FOR ONLY 74 OF RETAIL TRANSACTIONS ACCORDING TO THE VISA DATA RETAILERS COLLECT AS MUCH AS HALF THEIR ANNUAL PROFITS DURING THE HOLIDAY SEASON AND THE THANKSGIVING WEEKEND USUALLY IS AN IMPORTANT INDICATOR OF BUSINESS AHEAD MOST RETAILERS EXPECTED HOLIDAY SALES AT STORES OPEN AT LEAST A YEAR TO RISE BETWEEN 3 AND 8 OUTPACING THE CURRENT INFLATION RATE OF LESS THAN 2 HOLIDAY SAMESTORE SALES ROSE A ROBUST 8 LAST YEAR SAMESTORE SALES AT FEDERATED DEPARTMENT STORES INC'S BLOOMINGDALE'S CHAIN ROSE A STUNNING 11 FROM YEAREARLIER LEVELS ON WEDNESDAY FRIDAY AND SATURDAY SAID MICHAEL GOULD BLOOMINGDALE'S CHAIRMAN DESPITE THE STRONG START MR GOULD SAID IT IS TOO EARLY TO PREDICT HOW THE REST OF THE SEASON WILL GO JUST BECAUSE WE HAD THREE GOOD DAYS I DON'T KNOW WHAT THAT MEANS HE SAYS LAST YEAR WAS THE BEST CHRISTMAS WE'VE HAD IN FOUR YEARS AND IT WILL BE DIFFICULT TO BEAT WINTER STORMS IN THE MIDWEST AND TEXAS COOLED SALES AT RETAILERS LIKE TONY SAKS FIFTH AVENUE WHERE SAMESTORE SALES FELL 2 FOR FRIDAY AND SATURDAY AND DISCOUNTER WALMART STORES INC WHICH SAID SALES WERE GENERALLY GOOD BUT NOT UP TO WALMART STANDARDS BUT CALIFORNIA LONG THE INDUSTRY LAGGARD BEGAN TO SHOW SOME CHRISTMAS CHEER REGIONAL DEPARTMENT STORE CHAIN GOTTSCHALKS INC SAID SAMESTORE SALES ROSE AT LEAST 10 RETAILERS FEATURING GOODS FOR THE HOME CONTINUED TO FARE WELL FURNITURE RETAILER BOMBAY CO'S SAMESTORE SALES CLIMBED MORE THAN 20 AND SEARS ROEBUCK & CO'S SAMESTORE SALES ROSE BY A PERCENTAGE IN THE MIDTOHIGH SINGLE DIGITS OR SLIGHTLY MORE THAN EXPECTED THE COMPANY WHICH IS IN THE MIDST OF A TURNAROUND SAID IT BENEFITED FROM STRONG SALES OF ELECTRONICS AND APPLIANCES RH MACY & CO'S SAMESTORE SALES LAST WEEKEND EXCEEDED THE DEPARTMENT STORE CHAIN'S PLAN FOR LOW SINGLEDIGIT GAINS SAID MYRON E ULLMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER THIS IS AN ENCOURAGING START FOR US BUT IT'S A LONG WAY TO CHRISTMAS MR ULLMAN SAID I DON'T SEE DOUBLEDIGIT INCREASES FOR DEPARTMENT STORES PERSONAL INCOME IS STILL A MAJOR CONCERN FOR PEOPLE CONSUMER CAUTION TRANSLATED INTO BARGAIN BUYING ARTHUR NITZSCHE PRESIDENT OF TELECHECK MICHIGAN INC WHICH TRACKS PURCHASES PAID FOR BY CHECK SAID JEWELRYSTORE OWNERS INDICATED THAT EVEN DIAMOND RINGS DIDN'T ESCAPE COMPARISON SHOPPING SHOPPERS WANT TO GO A LITTLE MORE UPSCALE BUT THEY STILL HAVE THE BYGOSHI'MGOINGTOGETADEAL ATTITUDE HE SAID STORES THAT DIDN'T OFFER BIG DISCOUNTS WERE IN FOR A SLOW WEEKEND JEWELRY CHAIN ZALE CORP WHICH IS FINETUNING ITS PRICING STRATEGY CUT ITS HOLIDAY MARKDOWNS IN HALF THIS YEAR PARTLY AS A RESULT SAMESTORE SALES LAST WEEKEND WERE A LITTLE DISAPPOINTING SAID ANDREAS LUDWIG INTERIM CHIEF EXECUTIVE VICKI LOVING DROVE ABOUT AN HOUR FROM SHERMAN TEXAS TO A DALLAS MALL TO SHOP FOR HER FIVE CHILDREN LAST YEAR HER HUSBAND WAS UNEMPLOYED AND CHRISTMAS WAS SPARTAN THIS YEAR HER HUSBAND HAS A JOB AND SHE'S READY TO SPEND I'LL SPLURGE ON A FEW THINGS SHE SAID BUT MOST OF WHAT I'LL BUY WILL BE SALE ITEMS WE NEED CLOTHES AND SOME ESSENTIALS IN SUBURBAN CHICAGO SHARON GALAS SAID SHE HARDLY HAD TO WAIT IN LINE DURING SIX HOURS OF SHOPPING AT MARSHALL FIELD'S AND JC PENNEY PEOPLE ARE JUST LOOKING AROUND SHE SAID AT A PACKED GALLERIA MALL IN WHITE PLAINS NY NOT MANY PEOPLE WERE CARRYING SHOPPING BAGS AND MUCH OF THE SPENDING SEEMED TO BE TAKING PLACE IN THE MALL'S FOOD COURT SAID THE COOWNER OF DALLAS SOCK BOUTIQUE SOMETHING'S AFOOT ONE WOMAN TOLD US SHE WAS PRESHOPPING' WE HADN'T HEARD THAT TERM BEFORE AT YOUNKERS INC A MIDWEST DEPARTMENTSTORE RETAILER SAMESTORES SALES WERE UP 3 TO 5 ON FRIDAY SAID BOB FERGUSON SENIOR VICE PRESIDENT FOR MARKETING ADDING THAT HE EXPECTS CHRISTMAS PURCHASES TO BE RUNG UP LATE IN THE SEASON PEOPLE ARE WAITING TO SEE WHAT THEY ABSOLUTELY NEED HE SAID AT LECHMERE INC A NEW ENGLAND ELECTRONICS AND APPLIANCES CHAIN SALES WERE BRISK DUE IN PART TO AN EARLY BIRD SPECIAL THAT OFFERED THANKSGIVING WEEKEND DISCOUNTS OF UP TO 10 ON GOODS BOUGHT BEFORE 10 AM OFFICIALS SAID BARGAINS ARE PARTICULARLY IMPORTANT THIS SEASON IN THE NORTHEAST WHERE THE ECONOMY LAGS BEHIND MOST OTHER PARTS OF THE COUNTRY LAID OFF AND TEMPORARILY WORKING AS A HOUSEKEEPER MELISHA THOMAS OF BOSTON SAID HER SHOPPING BAG SATURDAY WAS FULL OF CLOTHES SHE PURCHASED FOR 10 TO 30 OFF SHE PLANS TO SPEND 500 ON GIFTS THIS YEAR DOWN FROM 800 A YEAR AGO LOWPRICED ITEMS ALSO MADE A SPLASH IN SOUTHERN CALIFORNIA THE NATION'S OTHER BIG TROUBLE SPOT CLOTHESTIME INC A DISCOUNT WOMEN'S APPAREL CHAIN BASED IN ANAHEIM CALIF SAID THANKSGIVING WEEK SAMESTORE SALES ROSE 5 AT DISCOUNT STREET MARKETS IN LOS ANGELES CROWDS WERE PAWING THROUGH THE MERCHANDISE PEOPLE ARE SO TIRED OF NOT HAVING MONEY THAT EVEN IF THEY DON'T HAVE ANY THEY'RE BUYING THE DIFFERENCE IS THEY'RE BUYING WHOLESALE SAID MONICA PARKER AN ACTRESS AND WRITER A SPOKESWOMAN FOR DAYTON HUDSON CORP WHICH HAS A LARGE PRESENCE IN CALIFORNIA WITH ITS MODERATE MERVYN'S STORES AND TARGET DISCOUNT STORES SAID THE STATE APPEARED TO BE DOING THE SAME AS THE REST OF THE COUNTRY WHERE TRAFFIC IS GOOD BUT AT LOS ANGELES' UPSCALE CENTURY PLAZA MALL PARKING TRAFFIC WAS OFF ABOUT 6 THIS WEEKEND FROM A YEAR AGO STROLLING THROUGH THE MALL WITH HIS WIFE AND CHILDREN MORTGAGE BROKER MARC LUAS SAID HE'S CERTAINLY SPENDING LESS THIS YEAR CITING THE DEPRESSED RESIDENTIAL REALESTATE MARKET EVEN IN THE SOUTHEAST WHERE THE ECONOMY IS FARING BETTER THAN OTHER REGIONS CONSUMERS WERE BUYING PRACTICAL GIFTS SHOPPING THE LENOX MALL IN ATLANTA EDDIE REICHERT OF BOSTON GA SAID SHE AND HER HUSBAND PROBABLY WILL SPEND A COUPLE THOUSAND DOLLARS ON GIFTS THIS YEAR BUT THE NURSING DIRECTOR SAID THAT INSTEAD OF GIVING HER DAUGHTER JEWELRY AS SHE DID LAST YEAR HER DAUGHTER WILL RECEIVE A KITCHENAID CAKE MIXER THIS CHRISTMAS AND SHE'S BUYING LUGGAGE FOR HER CIVIL ENGINEER SON WHO TRAVELS A LOT 9311290087 931129 SMALL BUSINESSES VOICE CAUTION ABOUT ECONOMY NEW YORK LOCAL SMALL BUSINESSES CONTINUE TO BE SKEPTICAL ABOUT ECONOMIC RECOVERY ACCORDING TO A SURVEY BY CHEMICAL BANK THE SURVEY COVERED 932 COMPANIES THAT WERE LOCATED IN A NINECOUNTY NEW YORK AREA AND THAT HAD ANNUAL SALES BETWEEN 1 MILLION AND 10 MILLION MORE THAN HALF OF THE COMPANIES IN THE SURVEY SAID THEY HAD SEEN NO IMPROVEMENT IN BUSINESS CONDITIONS IN THE PAST FEW MONTHS AND ANOTHER 40 SAID THEY HAD EXPERIENCED ONLY SLIGHT IMPROVEMENT IN BUSINESS CONDITIONS MORE THAN 80 SAID THEY EXPECTED A FURTHER WORSENING OR NO CHANGE IN BUSINESS CONDITIONS OVER THE NEXT FEW MONTHS PRODUCTION AND INVENTORY LEVELS HAVE DECREASED OR REMAINED UNCHANGED AT NEARLY TWOTHIRDS OF THE COMPANIES SURVEYED AND MORE THAN THREEQUARTERS SAID THEY HAVE HAD TO FREEZE OR REDUCE THE SIZE OF THEIR WORK FORCES 9311290086 931129 BRITISH AEROSPACE'S SHARES FALL AS CARRIER BRINGS SUIT LONDON BRITISH AEROSPACE PLC'S SHARES LOST NEARLY 3 OF THEIR VALUE AFTER A PORTUGUESE AIRLINE SUED THE COMPANY OVER AN AIRCRAFT SALE EUROAIR A REGIONAL CARRIER IS SEEKING 45 MILLION 67 MILLION IN DAMAGES SHARES FELL 115 PENCE FRIDAY TO CLOSE AT 4025 PENCE THE PORTUGUESE AIRLINE ALLEGES THAT BRITISH AEROSPACE PERSUADED IT TO BUY THREE ADVANCED TURBO PROP AIRCRAFT BY MISREPRESENTING THE QUALITY OF THE AIRCRAFT THE AIRLINE CLAIMS THE AIRCRAFT ISN'T FIT FOR CARRYING PASSENGERS ON PORTUGUESE DOMESTIC ROUTES BRITISH AEROSPACE DECLINED TO COMMENT SPECIFICALLY ON THE CHARGE BUT NOTED THAT THERE ARE 50 OF THE ADVANCED TURBO PROP PLANES CURRENTLY IN USE OTHER USERS OF THE AIRCRAFT INCLUDE BRITISH AIRWAYS AND BRITISH MIDLAND 9311290085 931129 MARKETING & MEDIA ALLTEL AGREES TO BUY PART OF GTE'S STAKE IN CELLULAR PARTNERSHIP LITTLE ROCK ARK ALLTEL CORP SAID IT AGREED TO PAY GTE CORP 120 MILLION FOR A 10 STAKE IN DALLAS SMSA LP WHICH OPERATES A CELLULARPHONE SYSTEM IN THE DALLAS AREA SOUTHWESTERN BELL CORP MAJORITY OWNER OF THE PARTNERSHIP AND OPERATOR OF THE SYSTEM THROUGH ITS CELLULAR SUBSIDIARY WILL HAVE 30 DAYS TO MATCH THE PRICE UNDER ITS RIGHT OF FIRST REFUSAL ALLTEL SAID SOUTHWESTERN BELL OFFICIALS COULDN'T BE REACHED FOR COMMENT THE TRANSACTION ALSO IS SUBJECT TO BOARD APPROVAL BY BOTH ALLTEL AND GTE WHICH HOLDS A 27 INTEREST IN THE PARTNERSHIP THROUGH ITS GTE MOBILNET INC SUBSIDIARY ALLTEL AN AGGRESSIVE BUYER OF TELEPHONE AND CELLULAR PROPERTIES THIS YEAR SAID IT EXPECTS THAT THE PURCHASE BY ITS ALLTEL MOBILE COMMUNICATIONS INC SUBSIDIARY WON'T DILUTE EARNINGS DALLAS IS ONE OF THE TOP CELLULAR MARKETS AND WE THINK THIS IS AN EXCELLENT OPPORTUNITY SPOKESMAN RONALD D PAYNE SAID 9311290084 931129 LAW LEGAL BEAT NEW YORK STATE MAY PUT CURBS ON CERTAIN TYPES OF HOLDER SUITS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STATE LAWMAKERS ARE SERIOUSLY CONSIDERING PUTTING TOUGH NEW RESTRICTIONS ON CERTAIN TYPES OF SHAREHOLDER LAWSUITS REFLECTING PRESSURE FROM SOME MAJOR CORPORATIONS THAT CLAIM TO BE BESIEGED BY FRIVOLOUS LITIGATION THE PROPOSED NEW LAW WOULD LIMIT THE CIRCUMSTANCES UNDER WHICH SHAREHOLDERS COULD FILE SOCALLED DERIVATIVE LAWSUITS WHICH SEEK TO REIMBURSE COMPANIES FOR LOSSES SUFFERED THROUGH THE NEGLIGENT ACTS OF OFFICERS AND DIRECTORS DERIVATIVE SUITS ARE ODD BIRDS OF LITIGATION THOUGH FILED BY SHAREHOLDERS AND DEFENDED AGAINST BY COMPANY LAWYERS ANY DAMAGES GO TO THE COMPANY RATHER THAN DIRECTLY TO SHAREHOLDERS THUS IN A SENSE THE COMPANY IS BOTH PLAINTIFF AND DEFENDANT AND THROUGH ITS INSURANCE IT PAYS ITSELF ANY DAMAGES THAT ARE WON CRITICS SAY THE NET EFFECT FREQUENTLY IS THAT THE ONLY PEOPLE WHO REALLY COME OUT AHEAD ARE THE PLAINTIFFS' LAWYERS WHO TAKE ONETHIRD OR MORE OF THE AWARD COURTS AND LEGISLATURES AROUND THE COUNTRY HAVE BEEN TIGHTENING THE STANDARDS FOR THE FILING OF SUCH SUITS IN RECENT YEARS BUT LEGAL EXPERTS SAY THE NEW YORK BILL IN ITS CURRENT FORM WOULD GO MUCH FURTHER ESSENTIALLY GIVING COMPANIES ALMOST UNBRIDLED DISCRETION IN DECIDING WHETHER TO ALLOW THE SHAREHOLDERS' CASES TO PROCEED IT IS A RATHER STRONG PROVISION THAT WOULD PROBABLY MAKE DERIVATIVE LITIGATION IMPOSSIBLE TO MAINTAIN IN ALL CASES ACCORDING TO PROF JACK COFFEE A CORPORATELAW SPECIALIST AT COLUMBIA UNIVERSITY THE LEGISLATION WHICH HAS BEEN CONSIDERED FOR THE PAST TWO YEARS HAS BECOME A TOP PRIORITY THIS YEAR OF THE POWERFUL BUSINESS COUNCIL OF NEW YORK STATE INC WHICH RECENTLY HIRED A FORMER COUNSEL TO GOV MARIO CUOMO TO LOBBY THE LEGISLATURE ON THE ISSUE AND BLANKETED LAWMAKERS WITH LETTERS OF SUPPORT AND TELEPHONE CALLS NOW MOMENTUM APPEARS TO BE GROWING FOR PASSAGE WITH GOV CUOMO INCLINED TOWARD SUPPORTING THE BILL AND THE LEGISLATURE SET TO TAKE UP THE ISSUE AT A SPECIAL SESSION NEXT MONTH THIS YEAR WAS THE FIRST YEAR THAT WE REALLY HAD THE TYPE OF LEGISLATIVE ATTENTION TO IT THAT WE THINK IT DESERVED SAID EDWARD REINFURT VICE PRESIDENT OF THE 5200MEMBER BUSINESS COUNCIL SUPPORTERS CERTAINLY HAVE HAD SOME FIRSTHAND EXPERIENCE WITH DERIVATIVE CASES A LEADER OF THE CAMPAIGN GENERAL ELECTRIC CO LAST MONTH AGREED TO SETTLE A MAJOR DERIVATIVE ACTION STEMMING FROM CHARGES THAT A GE MANAGER PARTICIPATED IN A BRIBERY SCHEME TO INFLUENCE ISRAEL INTO BUYING GE AIRCRAFT ENGINES AMONG 50 OTHER LARGE CORPORATE BACKERS OF THE INITIATIVE ARE INTERNATIONAL BUSINESS MACHINES CORP AND AMERICAN EXPRESS CO ORIGINALLY DERIVATIVE SUITS WERE CONCEIVED AS A WAY FOR SHAREHOLDERS TO CHALLENGE THE ACTIONS OF A SELFINTERESTED OR ENTRENCHED BOARD THAT WAS ALLOWING INSIDERS TO DAMAGE THE COMPANY OVER THE YEARS SUITS HAVE BEEN FILED OVER SUCH ISSUES AS INSIDER TRADING AND EXCESSIVE EXECUTIVE COMPENSATION DURING THE TAKEOVER BOOM OF THE 1980S THEY WERE USED AS A WAY OF ATTACKING SOME CORPORATIONS' RESISTANCE TO POTENTIALLY LUCRATIVE MERGER PROPOSALS IN RECENT YEARS CORPORATIONS HAVE FIRED BACK ON THE BASIS THAT SUCH SUITS INTERFERE WITH THEIR ABILITY TO POLICE THEMSELVES AND RESULT IN HIGHER INSURANCE PREMIUMS TO COVER OFFICERANDDIRECTOR NEGLIGENCE IN THE GE CASE THE COMPANY IS TO RECEIVE 195 MILLION FROM ITS INSURANCE POLICY THE SUIT WAS FILED IN SEPTEMBER 1992 SHORTLY AFTER GE PAID THE GOVERNMENT 69 MILLION TO SETTLE CIVIL AND CRIMINAL CHARGES IN CONNECTION WITH THE BRIBERY CASE GE SAID IT SETTLED THE CASE TO AVOID THE RISKS OF LITIGATION AND THAT ITS INTEREST IN DERIVATIVESUITS REFORM PREDATES THIS CASE TERMS OF THE SETTLEMENT WHICH INCLUDE PLAINTIFFS' ATTORNEYS' FEES OF AS MUCH AS 55 MILLION ARE BEING CONSIDERED FOR FINAL APPROVAL BY A FEDERAL JUDGE FRIDAY IN CINCINNATI MANY SHAREHOLDERS DON'T EVEN DO THAT WELL ANOTHER CONCERN WITH DERIVATIVE CASES IS THAT A GROWING NUMBER OF THEM ARE SETTLED WITHOUT ANY CASH PAYMENT BUT RATHER WITH THE CORPORATION AGREEING TO MAKE CHANGES IN ITS CORPORATE STRUCTURE OR BYLAWS CRITICS CONTEND THAT SUCH BENEFITS ARE HARD TO MEASURE AND OFTEN HAVE LITTLE REAL VALUE BUT THAT COMPANIES ARE WILLING TO ADOPT THEM AS A FAIRLY PAINLESS WAY OF DISPENSING WITH LITIGATION A LOT ARE JUST FRIVOLOUS SAYS ROBERTA ROMANO A YALE LAW SCHOOL PROFESSOR WHO PUBLISHED A STUDY IN 1991 SUGGESTING THAT THE PRINCIPAL BENEFICIARIES OF DERIVATIVE SUITS WERE ATTORNEYS THE NEW YORK LEGISLATION ESSENTIALLY WOULD GIVE CORPORATIONS MAXIMUM FLEXIBILITY IN DISMISSING SUCH SUITS IT WOULD REQUIRE SHAREHOLDERS IN EVERY CASE TO SEEK THE APPROVAL OF THE CORPORATION BEFORE FILING THEIR CASES SOME STATES CURRENTLY ALLOW SHAREHOLDERS TO GO DIRECTLY TO COURT WHERE DEMANDING CLEARANCE FROM THE COMPANY WOULD BE CONSIDERED FUTILE BECAUSE OF ALLEGED BIAS OR SELFINTEREST ON THE BOARD THE LAW ALSO WOULD GIVE THE COMPANY WIDE DISCRETION IN SETTING UP AN INDEPENDENT COMMITTEE TO EVALUATE THE MERITS OF SUCH A CLAIM AND LIMIT THE ABILITY OF COURTS TO REVIEW THE DECISION EDWARD LABATON A NEW YORK SHAREHOLDER ATTORNEY ASSERTS THAT THE EFFECT OF SUCH A RULE WOULD BE TO KILL ALL DERIVATIVE SUITS BECAUSE HE SAYS SUCH COMMITTEES HAVE A TRACK RECORD OF DECIDING NOT TO PURSUE SUCH CASES IT WOULD PERMIT THE WORST TYPES OF MANAGEMENT TO GET AWAY WITH THE MOST SERIOUS KINDS OF MISCONDUCT HE ADDS BUT OTHERS SAY SUCH DECISIONS ARE EXACTLY THE ONES THAT SHAREHOLDERS PAY MANAGERS TO MAKE A LAWSUIT IS A CORPORATE ASSET THAT IS WHAT A DERIVATIVE SUIT IS ALL ABOUT SAYS JAMES MELICAN EXECUTIVE VICE PRESIDENT OF INTERNATIONAL PAPER CO AND A SUPPORTER OF THE BILL THE BOARD OF DIRECTORS OUGHT TO BE JUST AS CAPABLE OF DETERMINING WHAT IS POTENTIALLY A LEGAL CLAIM AS THEY ARE IN DETERMINING WHETHER TO PURSUE AN ACQUISITION OR INVEST HUNDREDS OF MILLIONS OF DOLLARS IN A NEW PLANT A SERIES OF SWEEPING CHANGES IN THE RULES COVERING CIVIL LAWSUITS IN FEDERAL COURTS WILL TAKE EFFECT WEDNESDAY BUT PERHAPS NOT FOR LONG THE NEW RULES WHICH INCLUDE AN ATTEMPT TO STREAMLINE THE WAY LITIGANTS SWAP INFORMATION AND AN EASING OF SANCTIONS AGAINST PARTIES FILING FRIVOLOUS SUITS WERE APPROVED LAST SUMMER BY THE FEDERAL JUDICIARY BUT THEIR FATE HAD BEEN IN DOUBT BECAUSE OF A STRONG LOBBYING PUSH BY A NUMBER OF GROUPS SEEKING TO PERSUADE CONGRESS TO INTERVENE AND DELAY CERTAIN OF THE RULES BEYOND THE SCHEDULED DEC 1 EFFECTIVE DATE LAST WEEK THE LOBBYING RAN UP AGAINST ANOTHER DEADLINE CONGRESS'S ADJOURNING FOR THE YEAR AND DESPITE WIDESPREAD OPPOSITION TO SOME OF THE CHANGES THE RULES WILL GO INTO EFFECT AT LEAST FOR NOW THE MOST RADICAL CHANGE A PROVISION THAT WILL REQUIRE BOTH SIDES IN A LAWSUIT TO DISCLOSE TO EACH OTHER CERTAIN CORE INFORMATION ABOUT THEIR LITIGATION IS LIKELY TO BE THE SUBJECT OF FURTHER LEGISLATIVE WRANGLING IN THE NEW YEAR THE HOUSE HAD APPROVED LEGISLATION TO DELAY IMPLEMENTING THE CORE DISCLOSURE RULE AMONG OTHER CHANGES BUT THE BILL RAISED CONCERN IN THE SENATE AMONG TRIALLAWYER AND CIVILRIGHTS GROUPS BECAUSE OF OTHER RESTRICTIONS IT PLACED ON THE LEGAL FACTFINDING PROCESS INCLUDING A CAP ON THE NUMBER OF DEPOSITIONS THAT PARTIES COULD CONDUCT IN THE END THE CLOCK RAN OUT ON THE EFFORT TO RECONCILE THE DIFFERING POSITIONS VICTOR SCHWARTZ A LAWYER FOR A NUMBER OF BUSINESS GROUPS OPPOSING THE DISCLOSURE REQUIREMENT SAID HE BELIEVES IT IS LIKELY THAT A MODIFICATION OF THE RULES WILL OCCUR WHEN CONGRESS RETURNS TO WORK SUCH A MOVE HOWEVER WOULD REQUIRE SPECIAL LEGISLATION UNDER THE FEDERAL STATUTE GOVERNING THE RULESMAKING PROCESS AND SOME PROPONENTS OF THE CHANGES SAID THE CIRCUMSTANCES DON'T WARRANT CONGRESS TAKING SUCH AN EXTRAORDINARY STEP CONGRESS SHOULD PLAY BY THE RULES SAID WILLIAM SCHWARZER DIRECTOR OF THE FEDERAL JUDICIAL CENTER THE RESEARCH ARM OF THE FEDERAL COURTS AND AN ARCHITECT OF THE NEW RULES JUDGE SCHWARZER ADDED I THINK THE BOAT HAS SAILED ON THIS 9311290083 931129 INTERNATIONAL ECONOMISTS WARN THAT PUSH FOR GROWTH IN CHINA MAY REVIVE SOARING INFLATION BY KATHY CHEN AND JULIA LEUNG STAFF REPORTERS OF THE WALL STREET JOURNAL CHINESE COMPANIES AND LOCAL OFFICIALS ARE HEEDING BEIJING'S RECENT CALLS FOR SWIFT ECONOMIC DEVELOPMENT PROMPTING ECONOMISTS TO WARN OF A RESURGENCE IN INFLATION CHINA HASN'T FORMALLY ANNOUNCED AN END TO VICE PREMIER ZHU RONGJI'S AUSTERITY PROGRAM IMPLEMENTED IN LATE JUNE TO BATTLE RAMPANT PROPERTY AND STOCK SPECULATION AND DOUBLEDIGIT INFLATION BUT MANY BUSINESSPEOPLE AND PROVINCIAL AND LOCAL OFFICIALS ARE INTERPRETING A RECENT LOOSENING OF CREDIT AND STATEMENTS BY TOP LEADER DENG XIAOPING AND THE COMMUNIST PARTY URGING A FASTER PACE OF GROWTH AS SIGNS TO BOOST BUSINESS AND INVESTMENT ACTIVITY THE TREND IS LIKELY TO ACCELERATE NEXT YEAR AND THAT WORRIES ECONOMISTS WHO SAY CHINA'S ECONOMY COULD BE IN FOR ANOTHER ROUND OF OVERHEATING POSSIBLY PLACING THE COUNTRY IN A VICIOUS BOOMBUST CYCLE STILL THE EXPERIENCE OFFICIALS GAINED FROM TACKLING THE COUNTRY'S RECENT ECONOMIC PROBLEMS COUPLED WITH INFRASTRUCTURAL CONSTRAINTS MAKE A RETURN OF UNBRIDLED GROWTH UNLIKELY INVESTMENTS WILL INCREASE A LOT NEXT YEAR BUT PROPERTY AND STOCKS WON'T BE AS HOT INFRASTRUCTURE INVESTMENTS WILL SAYS FAN GANG OF THE CHINESE ACADEMY OF SOCIAL SCIENCES IN BEIJING ONE REASON IS THAT BANKS ARE MAINTAINING RESTRICTIONS ON BORROWING EVEN WHILE LOOSENING CREDIT OVERALL TO PREVENT CAPITAL FROM FLOWING INTO SPECULATIVE ACTIVITIES BUT THE DANGER REMAINS THAT AS EXPANSION GATHERS STEAM BEIJING WILL FACE NEW DIFFICULTIES KEEPING BUSINESSES AND LOCAL OFFICIALS IN CHECK THE GOVERNMENT HOPES TO RECENTRALIZE SOME OF ITS POWERS AND INTRODUCE MACROECONOMIC CONTROLS THROUGH MEASURES ANNOUNCED AT THIS MONTH'S COMMUNIST PARTY CENTRAL COMMITTEE SESSION BUT DOING SO WILL TAKE SOME TIME AND WHILE A BEIJING ECONOMIST SAYS THE CENTRAL COMMITTEE AGREED THAT THE ECONOMY SHOULD GROW 9 TO 10 NEXT YEAR OTHER ECONOMISTS THINK THE 1994 RATE IS MORE LIKELY TO COME IN AT THIS YEAR'S ESTIMATED 13 ORDERS ARE ALREADY PICKING UP AT BEIJING LIGHT BUS CO WHICH CUT ITS TARGET MINIBUS PRODUCTION THIS YEAR FROM 8000 UNITS TO 5500 AFTER MR ZHU CURBED OFFICIAL PURCHASES OF MOTOR VEHICLES GENERAL MANAGER WANG JINQUAN SAYS THE COMPANY NOW EXPECTS TO MEET ITS ORIGINAL 1993 PRODUCTION TARGET NEXT YEAR I'M HOPEFUL THAT THE ECONOMY CAN DEVELOP RELATIVELY FAST NEXT YEAR MR WANG SAYS IF THE GOVERNMENT SLAMS ON THE BRAKES EVERYONE WILL BE UNHAPPY LOCAL LEADERS ARE ALSO OPTIMISTIC HUNAN PROVINCE HOPES TO MAINTAIN ITS CURRENT GROWTH RATE OF MORE THAN 10 NEXT YEAR THE INLAND PROVINCE ONE OF THE LARGEST SOURCES OF UNAPPROVED BANK LOANS FLOWING INTO SOUTHERN CHINA FOR PROPERTY SPECULATION EARLIER THIS YEAR WANTS TO ENLIVEN ITS ECONOMY BY MAKING REAL ESTATE THE DRAGON'S HEAD OR THE ENGINE OF DEVELOPMENT SAYS ONE OFFICIAL INFRASTRUCTURE BOTTLENECKS POOR TRANSPORT LINKS INADEQUATE POWER SUPPLIES AND THE LIKE COULD ALSO HELP CHECK EXCESSIVE GROWTH NEXT YEAR IN FACT SOME HONG KONG ECONOMISTS BELIEVE SUCH CONSTRAINTS COULD SLOW CHINA'S OVERALL RATE OF GROWTH TO 8 OR 9 BY THE END OF NEXT YEAR BUT EVEN IF BEIJING MANAGES TO KEEP THE LID ON GROWTH IT'S LIKELY TO HAVE LESS LUCK WITH INFLATION WHICH EDGED UP 04 PERCENTAGE POINT TO A 21 ANNUAL RATE IN MAJOR CITIES IN OCTOBER AFTER FALLING FOR TWO CONSECUTIVE MONTHS HUAN GUOCANG AN ECONOMIST WITH JP MORGAN HK LTD SAYS THAT DEREGULATORY MEASURES APPROVED AT THE CENTRAL COMMITTEE SESSION SUCH AS PRICE AND BANKING REFORMS COULD FUEL INFLATION WHEN COMBINED WITH THE RECENT EASING OF CREDIT ANOTHER SOURCE OF POTENTIAL INFLATIONARY PRESSURE IS CHINA'S AILING STATE SECTOR PRODUCTION BY STATE FACTORIES GREW ONLY 4 IN OCTOBER AND MANY ARE PREDICTING NEGATIVE GROWTH BY JANUARY DUE TO A SHORTAGE OF CAPITAL PARTLY TO HELP KEEP THESE FACTORIES AFLOAT BEIJING HAS DECIDED TO INCREASE ITS NEW LENDING TARGET FOR 1993 TO 480 BILLION YUAN 8316 BILLION FROM THE 380 BILLIONYUAN TARGET CITED BY MR ZHU WHEN HE LAUNCHED THE AUSTERITY PROGRAM ACCORDING TO THE BEIJING ECONOMIST AND BECAUSE THE CENTRAL COMMITTEE SESSION FAILED TO ANNOUNCE THE LARGESCALE PRIVATIZATION OF STATE ENTERPRISES THE GOVERNMENT WILL HAVE TO CONTINUE TO PUMP MONEY INTO THE SECTOR MAKING A MESS OF MONETARY POLICY SAYS XIAO GENG WHO TEACHES ECONOMICS AT THE UNIVERSITY OF HONG KONG HE PREDICTS INFLATION WILL CONTINUE TO CLIMB UNTIL IT AT LEAST MATCHES JULY'S RATE OF 23 FOR MAJOR CITIES SOMETIME NEXT YEAR THERE IS A HIGH POSSIBILITY THAT THE ECONOMY WILL BOOM AND THAT IT COULD SPIN OUT OF CONTROL HE SAYS ADDING THAT THE LEADERSHIP MIGHT THEN BE FORCED TO SLAM ON THE BRAKES AGAIN AND ATTEMPT MORE DRASTIC REFORMS THAN THOSE LAID OUT BY THE CENTRAL COMMITTEE ALL THIS DOESN'T BODE WELL FOR CHINA'S TRADE BALANCE WHICH IS EXPECTED TO REGISTER A DEFICIT OF 10 BILLION THIS YEAR 9311290082 931129 AUSTRALIA'S RICE GETS A REAL COMPLIMENT FROM JAPAN TRADE ONCE SUBJECTED TO SLANDER SUNWHITE BAGS ARE TASTED IMPORTED HOME BY TOURISTS BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA FORGET THE OPERA HOUSE AND BONDI BEACH MURRAY'S KANGAROO SIGHTSEEING HAS A NEW ATTRACTION FOR JAPANESE TOURISTS IN AUSTRALIA RICE TASTING EACH DAY THE TOUR OPERATOR HAULS BUSLOADS OF JAPANESE TO A DUTYFREE SHOP HERE CALLED WINDS WHERE THEY GET A FREE SAMPLE OF AUSTRALIAN RICE AMONG THE SAMPLERS ONE RECENT AFTERNOON ARE MR AND MRS TOSHIKAZU IKEDA RETIREES FROM HIROSHIMA PREFECTURE AS JAPANESE TELEVISION CREWS RECORD THE EVENT THE IKEDAS ARE TRYING AUSTRALIAN RICE FOR THE FIRST TIME MRS IKEDA MUNCHES ON AN ONIGIRI A JAPANESE SNACK MADE OF RICE AND WRAPPED IN SEAWEED SHE PRONOUNCES THE LOCAL RICE FRESH AND BETTER THAN JAPANESE THESE DAYS SNIFFS THE 70YEAROLD TOURIST JAPANESE RICE IS STALE WE'VE EATEN RICE IN CANADA AMERICA AND THAILAND MR IKEDA INTERJECTS THE AUSTRALIAN RICE IS BEST IT'S JUST THE KIND OF COMMENT THAT MAKES AN AUSTRALIAN RICE GROWER'S DAY A JAPANESE FARMER PIONEERED RICE CULTIVATION IN AUSTRALIA IN 1906 BUT TRADE BARRIERS HAVE KEPT AUSTRALIAN RICE OUT OF JAPAN SINCE THE EARLY 1970S NOW THE POOREST HARVEST SINCE WORLD WAR II IS FORCING JAPAN TO IMPORT RICE AS SOON AS AUSTRALIAN FARMERS GOT WIND OF THE RICE SQUEEZE IN LATE SEPTEMBER THEY BOOSTED THIS SEASON'S PLANTINGS BY 200000 METRIC TONS AND EXPECT TO SELL UP TO A QUARTER OF THEIR PROJECTED 12 MILLIONTON HARVEST TO JAPAN RON MURRAY MANAGING DIRECTOR OF MURRAY'S GOT THE IDEA FOR RICE TASTINGS ON A RECENT TRIP TO JAPAN A COUPLE OF CONVERSATIONS ABOUT THE RICE CRISIS KIND OF GOT UP MY NOSE A BIT HE SAYS ESPECIALLY WHEN SOME JAPANESE ACQUAINTANCES SUGGESTED THAT AUSTRALIAN RICE IS POLLUTED THE AUSTRALIAN RICE INDUSTRY CONTENDS THAT IT HAS BEEN THE TARGET OF A LONGSTANDING DISINFORMATION CAMPAIGN IN JAPAN SO MR MURRAY DECIDED TO GIVE AWAY 10000 BAGS OF AUSTRALIAN SUNWHITE BRAND RICE AT THE DAILY TASTINGS BETWEEN LATE NOVEMBER AND JAN 1 HE FIGURES THAT EACH BAG WILL BE SHARED WITH HALF A DOZEN FRIENDS AND RELATIVES MAKING POTENTIAL CONVERTS OF SOME 60000 PEOPLE IN A NATION NOTORIOUS FOR SNUBBING FOREIGN RICE IN THE RIVERINA DISTRICT AUSTRALIA'S RICE BOWL 650 KILOMETERS 403 MILES SOUTHWEST OF SYDNEY SOME JAPANESE TOURISTS APPARENTLY NEED NO CONVINCING A SPOKESMAN FOR THE RICE GROWERS' COOPERATIVE LTD SAYS THAT IN THE PAST TWO WEEKS JAPANESE TOURISTS HAVE BEEN LOADING UP ON RICE AT THE AREA'S VISITOR CENTER SOME TOURISTS BUY AS MUCH AS 100 KILOGRAMS 220 POUNDS THE MAXIMUM ALLOWED TO BE IMPORTED INTO JAPAN FOR PERSONAL USE IF A BUSLOAD OF 45 JAPANESE VISITORS PULLS UP WE HAVE NO TROUBLE SUPPLYING IT THE SPOKESMAN SAYS BUT WE'VE TOLD THE AGENTS THAT THEY'LL NEED ANOTHER BUS TO CARRY IT AWAY BACK IN JAPAN EDITORS ARE EATING UP THE RICE STORY MR MURRAY'S RICETASTING PARTY GOT NEARLY TWO MINUTES OF COVERAGE ON TELEVISION IN THE LAST FOUR WEEKS THERE'S BEEN THREE DAYS INCLUDING WEEKENDS WHERE I HAVEN'T HAD JAPANESE JOURNALISTS JETTING IN FROM JAPAN TO COMB THE RICE FIELDS SAYS CHRIS BLACK THE COOPERATIVE'S PUBLIC RELATIONS MANAGER MOSTLY HE SAYS THEY ARRIVE DEMANDING EVIDENCE THAT AUSTRALIAN RICE ISN'T FULL OF POISONS IT'S NOT AS SIMPLE AS JUST TELLING THEM MR BLACK SAYS THEY NEED PROOF AS WELL 9311290081 931129 POLITICS & POLICY CONSERVATIVES TEAR A PAGE FROM LIBERALS' BOOK BORKING' CLINTON'S NOMINEES FOR LEGAL POSITIONS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BORKING IS BACK BUT WITH THE ROLES REVERSED DURING THE REAGANBUSH YEARS THE RIGHT DECRIED LIBERAL ATTACKS ON JUDICIAL AND JUSTICE DEPARTMENT NOMINEES SUCH AS ROBERT BORK CLARENCE THOMAS AND WILLIAM BRADFORD REYNOLDS INDEED THE CAMPAIGN THAT KILLED MR BORK'S 1987 SUPREME COURT NOMINATION BEQUEATHED THE VERB TO BORK MEANING TO BARRAGE AN APPOINTEE WITH SENSATIONALSOUNDING EXCERPTS OF PAST OPINIONS WRITINGS OR SPEECHES DESPITE THEIR PROTESTS ABOUT LIBERAL TACTICS HOWEVER CONSERVATIVES HAVE PUT TOGETHER A POTENT BORKING MACHINE OF THEIR OWN ITS KEY COMPONENTS REPUBLICAN SENATE AIDES WHO COMPILE NEGATIVE DOSSIERS ON NOMINEES LIKEMINDED OUTSIDE GROUPS THAT SEEK TO STIR UP GRASSROOTS OPPOSITION AND CONSERVATIVE COLUMNISTS WHOSE SIMULTANEOUS ALARMS CAN CREATE A POWERFUL ECHO EFFECT LIBERALS STOPPED ROBERT BORK'S NOMINATION FOR THE SUPREME COURT LIBERALS ALMOST STOPPED JUSTICE CLARENCE THOMAS SAYS THOMAS JIPPING OF THE CONSERVATIVE FREE CONGRESS FOUNDATION AND MR REYNOLDS WAS REJECTED FOR THE NO 3 POST AT THE JUSTICE DEPARTMENT IT'S OUR TURN NOW MR JIPPING DECLARES THE BIG CONSERVATIVE VICTORY SO FAR HAS BEEN BLOCKING LANI GUINIER FROM BECOMING THE JUSTICE DEPARTMENT'S CIVILRIGHTS CHIEF BUT OTHERS ARE CURRENTLY UNDER FIRE INCLUDING ROSEMARY BARKETT A FEDERAL APPEALS COURT NOMINEE AND WILLIAM GOULD THE WOULDBE CHAIRMAN OF THE NATIONAL LABOR RELATIONS BOARD THE CONNECTION TO PAST BATTLES IS QUITE DIRECT IN SOME INSTANCES JANET NAPOLITANO MR CLINTON'S CHOICE TO BE US ATTORNEY IN PHOENIX GENERATED GOP HOSTILITY BECAUSE OF HER REFUSAL TO DISCUSS CONFIDENTIAL ASPECTS OF HER WORK AS COUNSEL TO ANITA HILL WHO ACCUSED JUSTICE THOMAS IN 1991 OF SEXUAL HARASSMENT QUESTIONS ABOUT MS NAPOLITANO'S ROLE WERE FIRST RAISED BY CONSERVATIVE JOURNALIST DAVID BROCK WHO ATTACKED HER IN ARTICLES IN THE AMERICAN SPECTATOR AND THE WASHINGTON TIMES AFTER USING PROCEDURAL MANEUVERS TO DELAY MS NAPOLITANO'S CONFIRMATION FOR MONTHS REPUBLICANS RELENTED ON NOV 19 AND ALLOWED HER TO BE CONFIRMED FOR THE POST IN PRESSING AGGRESSIVE CHALLENGES TO CLINTON APPOINTEES THE CONSERVATIVES ARE BORROWING A PAGE FROM OUR BOOK SAYS NAN ARON WHO AS DIRECTOR OF THE ALLIANCE FOR JUSTICE A CONSORTIUM OF LIBERAL GROUPS COORDINATED OPPOSITION TO REAGAN AND BUSH APPOINTMENTS CONSERVATIVES ACKNOWLEDGE THAT LIKE THEIR LIBERAL COUNTERPARTS IN THE 1980S THEY HAVE THE RESOURCES TO TRY TO STOP ONLY A TINY FRACTION OF THE PRESIDENT'S NOMINEES THE GOAL IS TO FORCE CLINTON TO EXPEND AS MUCH POLITICAL CAPITAL AS POSSIBLE SAYS CLINT BOLICK OF THE LIBERTARIANCONSERVATIVE INSTITUTE FOR JUSTICE HE HELPED LEAD THE BLITZ ON MS GUINIER WITH A SLASHING EDITORIALPAGE ARTICLE IN THIS NEWSPAPER IF WE SUCCEED EVEN IN ONLY A FEW CASES MR BOLICK ADDS WE MAY DISCOURAGE THE WHITE HOUSE FROM CHOOSING PEOPLE WITH MORE EXTREME PHILOSOPHIES REPUBLICANS FOR EXAMPLE PROBABLY DON'T HAVE THE VOTES TO KILL MR GOULD'S NOMINATION TO HEAD THE LABORRELATIONS BOARD BUT THEY HOPE THAT BY TYING UP THE LIBERAL STANFORD LAW PROFESSOR'S APPOINTMENT THEY CAN INFLUENCE THE WHITE HOUSE TO NAME A MORE PROBUSINESS PERSON FOR ANOTHER VACANCY ON THE NLRB SO IN AN ATTACK SOME BUSINESS LOBBYISTS DESCRIBE PRIVATELY AS BORKING MR GOULD IS BEING DEPICTED AS A RADICAL FOR HAVING ADVOCATED PROUNION LEGAL CHANGES IN HIS ACADEMIC WRITINGS IN A NEW TWIST ON EARLIER LIBERAL STRATEGY THE CONSERVATIVE OPPOSITION ALSO INVOLVES COVERT EFFORTS BY SOME GOP SENATE AIDES TO INCITE EDITORIALISTS AND THE PUBLIC AFTER PRESIDENT CLINTON ANNOUNCED IN LATE SEPTEMBER THAT HE WANTED TO PROMOTE JUDGE BARKETT FROM CHIEF OF FLORIDA'S TOP COURT TO A SPOT ON THE FEDERAL APPEALS COURT IN ATLANTA AIDES TO GOP SEN ORRIN HATCH OF UTAH WENT TO WORK THEY COMBED THE 54YEAROLD JURIST'S LENGTHY RECORD TO FIND EXAMPLES OF HER LIBERAL ACTIVISM ESPECIALLY ANY OPPOSITION TO DEATH SENTENCES IN GRISLY MURDER CASES IN DUE COURSE SEN HATCH THE RANKING REPUBLICAN ON THE JUDICIARY COMMITTEE ANNOUNCED THAT HE WAS DEEPLY TROUBLED BY JUDGE BARKETT'S VIEWS ON CAPITAL PUNISHMENT BEHIND THE SCENES MARK DISLER A SENIOR HATCH AIDE CIRCULATED ANTIBARKETT MEMOS TO PRESUMABLY SYMPATHETIC COLUMNISTS URGING THEM TO USE THE MATERIAL BUT NOT IDENTIFY ITS SOURCE A MINIWAVE OF ANTIBARKETT EDITORIALS APPEARED BUT THEN COLUMNIST CHARLEY REESE OF THE ORLANDO SENTINEL A RECIPIENT OF THE DISLER PACKAGE BLEW THE WHISTLE ON THE HATCH AIDE IN RESPONSE SEN HATCH PUBLICLY REPRIMANDED HIS ASSISTANT FOR NOT FOLLOWING PROPER PROCEDURE BUT ADDED THAT THE MEMOS WERE ACCURATE SIMILAR TACTICS WERE USED AGAINST ATTORNEY GENERAL JANET RENO WHEN SHE WAS NOMINATED IN FEBRUARY ACCORDING TO SENATE STAFF MEMBERS JOHN BLISS AN AIDE TO GOP SEN HANK BROWN OF COLORADO ALONG WITH A SINCEFIRED LOBBYIST FOR THE NATIONAL RIFLE ASSOCIATION HELPED SPREAD ALLEGATIONS THAT MS RENO HAD A DRINKING PROBLEM SOMETHING SHE FLATLY DENIES JOHN THOMPSON A LONGTIME RENO POLITICAL FOE FROM MIAMI HAS SUBMITTED A SWORN AFFIDAVIT TO THE SENATE ETHICS COMMITTEE AS PART OF A COMPLAINT ALLEGING THAT MR BLISS PRODDED HIM TO LEAK THE DRINKING STORY TO THE PRESS SENATE REPUBLICANS WERE ATTEMPTING TO SMEAR MS RENO THROUGH SOMEONE ELSE WITHOUT HAVING THEIR FINGERPRINTS ON THE THING MR THOMPSON SAYS IN AN INTERVIEW AS HE DID WHEN THE CAPITOL HILL NEWSPAPER ROLL CALL FIRST REPORTED ON THE FLAP MR BLISS SAYS HE WAS MERELY INVESTIGATING ALLEGATIONS THAT TURNED OUT TO BE UNSUBSTANTIATED WE DIDN'T GO TO MR THOMPSON HE CAME TO US THE AIDE SAYS ADDING I NEVER SOUGHT TO SHARE THE INFORMATION WITH THE PRESS SEN BROWN BLAMED THE RUMORS ON MR THOMPSON AND VOTED TO CONFIRM MS RENO ANOTHER THING THAT DISTINGUISHES THE NEW BORKING FROM THE OLD IS INCREASED TECHNOLOGICAL SOPHISTICATION EPITOMIZED BY THE FREE CONGRESS FOUNDATION'S SATELLITE VIDEO NETWORK STARTED IN 1991 TO MOBILIZE CONSERVATIVE GROUPS AROUND THE COUNTRY THE NETWORK IS SCHEDULED TO EXPAND TO 24HOURADAY CABLE SERVICE NEXT MONTH MR JIPPING HAS APPEARED REPEATEDLY ON FREE CONGRESS TELECASTS EXHORTING VIEWERS TO RISE UP AGAINST JUDGE BARKETT BECAUSE OF WHAT HE SAYS ARE HER VOTES TO SPARE SOME HEINOUS KILLERS FROM EXECUTION THE SERMONS HAVE IGNITED ANGER AMONG PEOPLE SUCH AS DALE SWITZER THE TULSA OKLA LIAISON OF THE CHRISTIAN COALITION A NATIONAL ORGANIZATION HEADED BY EVANGELISTPOLITICIAN PAT ROBERTSON FOR SOME REASON MR JIPPING'S PITCH LIT MY FIRE SAYS MR SWITZER WHO HAS LAUNCHED AN ANTIBARKETT LETTERWRITING DRIVE AIMED AT OKLAHOMA SENS DAVID BOREN A DEMOCRAT AND DON NICKLES A REPUBLICAN SEN HATCH HAS SUCCEEDED IN GETTING JUDGE BARKETT'S CONFIRMATION HEARING PUT OFF UNTIL NEXT YEAR BUT IT'S STILL FAR FROM CERTAIN THAT SHE WILL BE STOPPED SHE RECEIVED THE AMERICAN BAR ASSOCIATION'S TOP RATING AND HAS A PLAUSIBLE RESPONSE TO THE CHARGE THAT SHE IS SOFT ON THE DEATH PENALTY SHE HAS VOTED MORE THAN 200 TIMES TO AFFIRM CAPITAL SENTENCES 9311290080 931129 US PHYSICAL THERAPY OPENINGS HOUSTON US PHYSICAL THERAPY INC SAID IT WILL OPEN EIGHT TO 10 CLINICS IN THE FIRST QUARTER OF 1994 THE OPERATOR OF PHYSICALTHERAPY CLINICS ALSO SAID THAT IN DECEMBER IT WILL REACH ITS GOAL OF OPENING 15 CLINICS THIS YEAR WHEN A PALM BEACH GARDEN FLA CLINIC BEGINS OPERATION THAT OPENING WILL BRING TO 24 THE NUMBER OF OUTPATIENT CLINICS THE COMPANY OPERATES IN 11 STATES 9311290079 931129 COCACOLA AMATIL IN EUROPE SYDNEY AUSTRALIA COCACOLA AMATIL LTD AN AUSTRALIAN SOFTDRINK COMPANY THAT IS 52OWNED BY COCACOLA CO OF THE US CONTINUED ITS EXPANSION IN EUROPE WITH THE ACQUISITION OF A SOFTDRINK FACTORY IN THE SLOVAK REPUBLIC COCACOLA AMATIL SAID IT REACHED AN AGREEMENT WITH AQUAFRESH SA A SLOVAKIAN WATER AND SOFTDRINK ENTERPRISE TO PURCHASE THE AQUAFRESH FACTORY AT LUKA NEAR THE TOWN OF PIESTANY WHICH IS RENOWNED IN EUROPE FOR ITS SPAS THE AUSTRALIAN COMPANY SAID THE FACTORY BUILT IN 1991 IS EMINENTLY SUITABLE FOR MAKING COCACOLA PRODUCTS FOR THE 55 MILLION PEOPLE OF THE SLOVAK REPUBLIC PETER GRIFFITHS COCACOLA AMATIL'S REGIONAL DIRECTOR FOR EUROPE SAID HE CAN'T DISCLOSE THE PRICE HIS COMPANY AGREED TO PAY BECAUSE OF A CONFIDENTIALITY AGREEMENT WITH AQUAFRESH COCACOLA AMATIL WHICH HAS BEEN STEADILY EXPANDING IN EUROPE DURING THE PAST THREE YEARS HOLDS THE FRANCHISE TO PRODUCE COCACOLA IN HUNGARY AUSTRIA AND THE BELARUS AND CZECH REPUBLICS 9311290078 931129 ITALIAN BANKS' OCTOBER LENDING ROME LENDING BY ITALIAN BANKS ROSE 1 IN OCTOBER FROM A YEAR EARLIER ACCORDING TO PROVISIONAL STATISTICS BY THE BANK OF ITALY THE RATE WAS UP FROM AN UNCHANGED RATE REGISTERED IN SEPTEMBER AND DOWN FROM A 18 INCREASE RECORDED IN AUGUST THE CENTRAL BANK SAID LENDING OF LIRA FUNDS ROSE 54 IN OCTOBER FROM A YEAR EARLIER THAT COMPARES WITH INCREASES OF 38 IN SEPTEMBER AND 6 IN AUGUST 9311290077 931129 INTERNATIONAL VW SEES LOSS OF 118 BILLION FOR THIS YEAR FINANCIAL STRUGGLES COME AS GMLOPEZ REPORT IS SHORT OF FIRM'S CLAIM BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL WOLFSBURG GERMANY VOLKSWAGEN AG STRUGGLING TO QUIET AN INDUSTRIAL ESPIONAGE SCANDAL IS NOW BATTLING BUSINESS PROBLEMS WORSE THAN EXPECTED CHAIRMAN FERDINAND PIECH SAID EUROPE'S LARGEST CAR MAKER EXPECTS TO POST A STAGGERING TWO BILLION MARK LOSS 118 BILLION FOR 1993 FOR THE VW GROUP COMPARED WITH A PROFIT OF 147 MILLION MARKS LAST YEAR PRIMARILY AS A RESULT OF THE EARNINGS SHOCK AT THE SPANISH UNIT SEAT SA WHICH IS EXPECTED TO POST A YEARLY LOSS OF 14 BILLION MARKS AND REQUIRE A 600 MILLION MARK PROVISION BY VW FOR THE RESTRUCTURING COSTS IN ADDITION UNEXPECTED LOSSES FROM VW'S NORTH AMERICAN AND ASIANPACIFIC BUSINESSES AS WELL AS ITS LUXURY CAR DIVISION AUDI AG HAVE DASHED ALL HOPES FOR BREAKING EVEN IN 1993 A GOAL MR PIECH SET EARLIER IN THE YEAR IN FACT VW SALES HAVE GOTTEN WORSE THIS AUTUMN A TREND WE HAD NOT EXPECTED PARTICULARLY IN VIEW OF THE LARGE NUMBER OF OUR NEW MODELS OUT THIS FALL MR PIECH SAID HE MAINTAINED HOWEVER THAT THE GERMAN PARENT COMPANY WILL BREAK EVEN THIS YEAR DESPITE A 768 MILLION MARK LOSS IN THE FIRST NINE MONTHS MEANWHILE EVEN A CAREFULLY EXPURGATED SHORT VERSION OF A REPORT BY AUDITORS KPMG DEUTSCHE TREUHANDGESELLSCHAFT WHICH VW HIRED TO LOOK INTO ALLEGATIONS OF INDUSTRIAL ESPIONAGE FALLS FAR SHORT OF THE EXONERATION VW HAS CLAIMED IT TO BE PRESENTING KPMG'S FINDINGS AT A NEWS CONFERENCE FRIDAY SUPERVISORY BOARD CHAIRMAN KLAUS LIESEN SAID THE STUDY SHOWED THERE ARE NO INDICATIONS THAT INDUSTRIAL ESPIONAGE TO BENEFIT VW TOOK PLACE HE ADDED THAT HE HOPED THIS STUDY WOULD MAKE AN IMPORTANT CONTRIBUTION TO CALMING THE DISPUTE WITH GENERAL MOTORS CORP BUT FAR FROM CLEARING FORMER GM PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA AND HIS COLLEAGUES OF WRONGDOING THE KPMG REPORT CONFIRMS MANY OF GM'S MAIN ACCUSATIONS NAMELY THAT THE MEN HAD HOARDS OF MATERIALS BELONGING TO GM AND ITS GERMAN SUBSIDIARY ADAM OPEL AG WHEN THEY JUMPED TO VW AND THAT MANY OF THESE MATERIALS WERE PHOTOCOPIED EVALUATED AND IN SOME CASES EVEN ENTERED INTO VW COMPUTERS BY VW EMPLOYEES IN ONE VW OFFICE CENTER KNOWN AS BZO OR BUEROZENTRUM OST THE CONTENTS OF SOME 1820 GM/OPEL SLIDES WERE ENTERED INTO VW COMPUTERS BY EIGHT VW WORKERS AND THREE INTERNS KPMG DETERMINED HOWEVER THAT ACCORDING TO ITS DEFINITION OF SECRET INFORMATION NONE OF THE GM/OPEL DOCUMENTS IT COULD DISCOVER WERE STRICTLY SECRET AND THEREFORE THEIR POSSESSION OR USE DIDN'T CONSTITUTE INDUSTRIAL ESPIONAGE VW MADE A 19PAGE SUMMARY OF THE REPORT AVAILABLE TO JOURNALISTS BUT WOULDN'T GIVE ACCESS TO THE FULL REPORT THERE ARE A VAST NUMBER OF VW BUSINESS SECRETS IN THE REPORT SO YOU CAN UNDERSTAND WHY WE WOULDN'T MAKE IT PUBLIC SAID A VW SPOKESMAN KPMG CONFIRMED MAJOR GAPS IN ITS OWN INVESTIGATION SUCH AS THE AUDITORS' INABILITY TO DETERMINE THE CONTENTS OR SIGNIFICANCE OF THE GM/OPEL DOCUMENTS MR LOPEZ CONFIRMED HE AND HIS COLLEAGUES SHREDDED IN THE VWOWNED INN GAESTEHAUS ROTHEHOF IT WAS DETERMINED THAT SOME 10000 PAGES WERE COPIED THERE WHEN THE MEN WERE UNPACKING SORTING AND PARTIALLY DESTROYING THE CONTENTS OF SOME 20 CARTONS FULL OF DOCUMENTS FROM MR LOPEZ'S OPEL OFFICE BUT ONLY A PORTION OF THESE COPIES COULD BE ACCOUNTED FOR THE REPORT SAID MOREOVER KPMG FOUND SOME EXPLANATIONS OF MR LOPEZ'S COWORKERS ON THIS MATTER TO BE UNTRUE IT WAS NOT POSSIBLE TO DETERMINE WHAT DOCUMENTS WERE COPIED IN ROTHEHOF KPMG SAID BUT THE EXPLANATION OF THE INVOLVED COLLEAGUES OF MR LOPEZ THAT THEY WERE COPYING VW INFORMATION MATERIAL FOR MR LOPEZ'S TEAM WAS NOT BORNE OUT BY OUR EXAMINATION DAVID HERMAN CHAIRMAN OF GM'S GERMAN OPEL UNIT CALLED VW'S HANDLING OF THE KPMG REPORT'S FINDINGS A DISGRACE IN A HARSHLY WORDED STATEMENT THE FACT THAT THE LEADERSHIP OF VW IDLY ACCEPTS ALL OF THIS CONCEALS THE FACTS AND EMPLOYS MANAGERS IN KEY POSITIONS OF THE COMPANY WHEN THEY HAVE ILLEGALLY REMOVED DOCUMENTS FROM THEIR FORMER EMPLOYER IS AN UNPRECEDENTED CASE IN GERMAN INDUSTRY MR HERMAN SAID MEANWHILE DER SPIEGEL THE GERMAN INVESTIGATIVE WEEKLY MAGAZINE REPORTS ANOTHER INSTANCE WHERE MR LOPEZ'S COWORKERS ARE BELIEVED TO HAVE SHREDDED GM DOCUMENTS THE MAGAZINE SAID TWO OF MR LOPEZ'S WORKERS REQUESTED AN OFFICE AND A SHREDDER IN VW'S KASSEL FACTORY THE WEEK OF APRIL 5 JORGE ALVAREZAGUIRRE AND ROSARIO PIAZZA SHOWED UP TO PICK UP THE SHREDDER THEN DISAPPEARED FOR SEVERAL DAYS WHAT MAY HAVE OCCURRED IN KASSEL IS UNDER INVESTIGATION BY DARMSTADT PROSECUTORS VW'S MR WACHS CONFIRMED DARMSTADT KNOWS ABOUT IT THE SUPERVISORY BOARD KNOWS ABOUT IT KPMG KNEW ABOUT IT MR WACHS SAID KASSEL WAS NOT HOWEVER INCLUDED IN THE JURISDICTION OF KPMG'S PROBE NOR DID KPMG EXAMINE THE WIESBADEN APARTMENT OCCUPIED BY TWO OF MR LOPEZ'S COWORKERS WHERE POLICE SEIZED CARTONS OF OPEL DOCUMENTS THE FOCUS OF THE INVESTIGATION WAS WHETHER SECRET GM KNOWLEDGE CAME INTO VW AS A COMPANY AND NOT A FULL INVESTIGATION INTO THE ACTIONS OF THE MEN UPON THEIR DEPARTURE SAID MR LIESEN 9311290076 931129 BAYER AG'S CHINA INVESTMENT BEIJING BAYER AG THE GERMAN CHEMICALS AND PHARMACEUTICALS COMPANY SIGNED AN AGREEMENT SATURDAY TO INVEST 200 MILLION IN CHINA THE TIME HAS NOW COME FOR OUR COMPANY TO SET UP PRODUCTION IN CHINA SAID DIETER BECHER A BAYER BOARD MEMBER HE SAID BAYER'S BUSINESS IN CHINA WOULD SEE LITTLE NEW GROWTH IF THE FIRM CONTINUED TO RELY ON EXPORTING ITS PRODUCTS TO CHINA THE AGREEMENT COVERS CONSTRUCTION OF JOINTVENTURE FACTORIES TO PRODUCE POLYCARBONATE AN ENGINEERING PLASTIC THAT BAYER MARKETS UNDER THE NAME MAKROLON AND CHEMICALS FOR THE LEATHER INDUSTRY INCLUDING TANNING AGENTS PIGMENTS AND BINDERS BAYER AND ITS CHINESE PARTNERS WILL CONSTRUCT AN IRON OXIDE GRINDING AND MIXING PLANT AND A HYDRAZINE HYDRATE PLANT BAYER'S UNIT AGFAGEVAERT IS SETTING UP A JOINTVENTURE FACILITY FOR CUTTING SLITTING AND PACKAGING PHOTOGRAPHIC FILM COLOR PAPER AND AGFA XRAY FILM 9311290075 931118 NEW REASONS TO DOUBT HISS BY SAM TANENHAUS NOW THAT THE COLD WAR IS OVER THERE IS HOPE THAT ONE OF ITS MOST ENDURING CONTROVERSIES THE ALGER HISS CASE CAN FINALLY BE SETTLED YET UNTIL RUSSIAN OFFICIALS UNLOCK THEIR VAST INTELLIGENCE ARCHIVES WE WILL LACK A FULLY DOCUMENTED RECORD OF THE SERVICES MR HISS AND OTHER AMERICANS PERFORMED FOR MOSCOW AS MEMBERS OF THE SOVIET ESPIONAGE UNDERGROUND AND WITHOUT SUCH A RECORD MR HISS AND HIS PARTISANS WILL PERSIST IN THEIR CLAIMS THAT HE WAS UNJUSTLY CONVICTED OF PERJURY IN THE 1950S A VICTIM OF ANTICOMMUNIST HYSTERIA IN THE MEANTIME HOWEVER THE TRUTH IS EMERGING FROM OTHER SOURCES JUST LAST MONTH THE CONTENTS OF A THICK DOSSIER IN BUDAPEST WERE MADE PUBLIC AND WE LEARNED FROM THEM THAT NOEL FIELD AN AMERICAN DIPLOMAT AND SOVIET SPY WHO DEFECTED BEHIND THE IRON CURTAIN IN 1949 HAD GIVEN HUNGARIAN COMMUNISTS A VIVID ACCOUNT OF HIS ILLICIT DEALINGS WITH MR HISS IN THE 1930S AND NOW THANKS TO RECENTLY DECLASSIFIED US STATE DEPARTMENT FILES A NEW WITNESS HAS SURFACED HE IS SAMUEL KLAUS A STATE DEPARTMENT OFFICIAL WHO DIED IN 1963 AND WHOSE CONFIDENTIAL PAPERS KEPT SECRET FOR MANY YEARS ILLUMINATE A VITAL PHASE OF MR HISS'S ACTIVITIES IN THE 1940S THE CONTENTS OF THE KLAUS FILES REVEALED HERE FOR THE FIRST TIME ESTABLISH THAT AS EARLY AS 1946 TWO YEARS BEFORE WHITTAKER CHAMBERS'S CELEBRATED TESTIMONY BEFORE THE HOUSE COMMITTEE ON UNAMERICAN ACTIVITIES MR HISS WAS DIRECTLY CONFRONTED ABOUT SPECIFIC SECURITY VIOLATIONS HE WAS COMMITTING AS A SENIOR OFFICER IN THE STATE DEPARTMENT AND ABOUT A PATTERN OF MISCONDUCT THAT PERMEATED THE DEPARTMENTS HE SUPERVISED THE DOCUMENTS ALSO TELL AN INTRIGUING STORY ALL THEIR OWN IT IS SET IN THE FIRST TENSE MONTHS OF THE COLD WAR AND IT BEGINS WITH A MYSTERIOUS LEAK ON SEPT 12 1946 DREW PEARSON THE WASHINGTON POST COLUMNIST KNOWN FOR HIS FERTILE INSIDE CONTACTS PUBLISHED AN ITEM ONLY A FEW LINES LONG THAT HAD INTERNATIONAL REPERCUSSIONS THE TOPIC WAS GREECE WHICH FACED A POSSIBLE COMMUNIST TAKEOVER THIS FATE HAD BEEN FORESTALLED BY THE PRESENCE OF BRITISH TROOPS BUT NOW MR PEARSON WROTE THE SITUATION MIGHT SUDDENLY CHANGE AMERICAN MILITARY INTELLIGENCE WAS CONVINCED THAT BRITISH FORCES SHOULD BE EVACUATED LEST THE BELEAGUERED NATION ERUPT IN CIVIL WAR A GREEK NEWSPAPER CITING MR PEARSON REPEATED THE RUMOR AND WARNED OF A WIDENING RIFT BETWEEN BRITAIN AND THE US THE POST ARTICLE DEEPLY DISTURBED STATE DEPARTMENT OFFICIALS ACCORDING TO A MEMORANDUM IN THE NEWLY DECLASSIFIED FILES FOR ONE THING MR PEARSON HAD ECHOED A REMARK CONTAINED IN A SECRET REPORT BRITISH GARRISON IN GREECE THAT HAD CIRCULATED TWO WEEKS BEFORE IN THE OFFICE OF SPECIAL POLITICAL AFFAIRS THE DEPARTMENT'S LIAISON TO THE UNITED NATIONS OBVIOUSLY THE REPORT HAD BEEN LEAKED TO THE COLUMNIST BY SOMEONE AT OSPA WORSE MR PEARSON HAD BUNGLED THE FACTS THE VIEWS HE ATTRIBUTED TO THE AMERICAN HIGH COMMAND WERE A DIRECT INVERSION OF CURRENT INTELLIGENCE OPINION WHOEVER HAD PASSED ALONG THE CONFIDENTIAL REMARKS HAD ALSO TWISTED THEIR MEANING EVIDENTLY FOR THE PURPOSE OF DISRUPTING AN ALREADY FRAYED ANGLOAMERICAN ALLIANCE THIS WAS A SERIOUS BREACH OF SECURITY AN INVESTIGATION WAS CALLED FOR ENTER SAM KLAUS SPECIAL ASSISTANT TO THE STATE DEPARTMENT'S LEGAL ADVISER MR KLAUS TRACED THE LEAK TO AN ASSISTANT AT OSPA WHO HAD SINCE DESTROYED OR OTHERWISE DISPOSED OF THE ORIGINAL DOCUMENT A CRIMINAL VIOLATION THAT FOR SOME REASON HAD BEEN SANCTIONED BY TWO OF THE ASSISTANT'S IMMEDIATE SUPERIORS AND PERHAPS BY THE OFFICE'S DIRECTOR ALGER HISS ON OCT 4 MR KLAUS CONFRONTED MR HISS THE TRANSCRIPT OF THEIR EXCHANGE IS INCLUDED AMONG THE NEWLY DECLASSIFIED PAPERS MR HISS WHILE ANNOYED THAT SOME IN HIS DEPARTMENT WERE TRYING TO SAY I AM RESPONSIBLE FOR THE INCIDENT WAS STRANGELY UNRUFFLED BY THE VIOLATION ITSELF MORE THAN THREE WEEKS HAD PASSED SINCE THE DOCUMENT WAS LEAKED AND THE ORIGINAL DESTROYED MORE THAN A WEEK SINCE HE HAD BEEN INSTRUCTED TO HELP IN THE INVESTIGATION YET HE HAD NOT EVEN EXAMINED THE PAPERS IN QUESTION MR HISS NOW ASSURED MR KLAUS HE WOULD LIKE TO SEE THEM THIS SHOULD BE EASY ENOUGH TO DO MR KLAUS TARTLY REPLIED SINCE SO MANY COPIES OF THE REPORT WERE FLOATING AROUND THE OFFICE HERE HE WAS REFERRING TO ANOTHER DISTURBING DEVELOPMENT AN INITIAL REQUEST TO THE DOCUMENT ROOM FOR 25 COPIES OF THE SECRET REPORT WHEN IT FIRST REACHED OSPA ON SEPT 3 HAD MAGICALLY RESULTED IN 60 COPIES AND 13 HAD DISAPPEARED AT LEAST ONE HAD BEEN TAKEN OUT OF THE OFFICE ALL THIS FLAGRANTLY VIOLATED SECURITY PROCEDURES BUT AMOUNTED TO BUSINESS AS USUAL IN MR HISS'S OFFICE A SECOND INVESTIGATOR WHOSE MEMORANDUM IS IN THE KLAUS FILES DISCOVERED THAT OVERORDERING IS A COMMON PRACTICE IN OSPA WITH RESPECT TO REPRODUCTION OF CLASSIFIED DOCUMENTS AND GIVEN OSPA'S CLOSE CONNECTION WITH THE UN AND ITS FOREIGN DELEGATIONS THE SECURITY DANGERS ARE OBVIOUS THE REPORT ON GREECE WAS LOWGRADE COMPARED WITH THE OTHER PAPERS FLOODING INTO OSPA SOME WERE AMONG THE MOST SENSITIVE BEING CREATED BY THE GOVERNMENT'S FOREIGN POLICY EXPERTS AND DEALT WITH MATTERS FAR OUTSIDE THE NORMAL SCOPE OF THE OSPA DIRECTOR INDEED THEY WERE NOT DESIGNATED FOR ALGER HISS'S EXAMINATION MR KLAUS TURNED UP SECRET REPORTS ON THE POSTWAR TRUSTEESHIP OF JAPAN PREPARED EXCLUSIVELY FOR MEMBERS OF AN ELITE SUBCOMMITTEE OF THE STATE WAR AND NAVY COORDINATING COMMITTEE SWNCC WHICH INCLUDED NO MEMBERS OF OSPA HE ALSO FOUND TOPSECRET DOCUMENTS OUTLINING US POLICY IN CHINA ESPECIALLY WITH REGARD TO MILITARY AID TO THE CENTRAL GOVERNMENT AND OSPA RECEIVED A STEADY FLOW OF MATERIAL CLASSIFIED TOP SECRET ON THE GRAVEST ISSUE OF NATIONAL SECURITY IN THE POSTWAR ERA THE ATOMIC BOMB A DOCUMENT ON THE SUBJECT MARKED SPECIAL LIMITED DISTRIBUTION HAD LANDED ON MR HISS'S DESK BUT BORE NO ROUTING INSTRUCTIONS INDICATING IT BELONGED THERE HE HAD ALSO SEEN A REPORT CLASSIFIED AS TOP SECRET ON THE DISPOSITION OF URANIUM AS FAR AS MR KLAUS COULD DETERMINE IT WAS ALGER HISS HIMSELF WHO MADE THE ORIGINAL ARRANGEMENT FOR OSPA TO GET COPIES OF THESE PAPERS WITHIN OSPA DOCUMENTS WERE HANDLED IN A CURIOUS MANNER THE SECRET REPORT ON GREECE SUPPOSED TO BE LOCKED IN A FILE CABINET HAD SAT FOR A NUMBER OF DAYS ON AN OPEN BOOKCASE A TOPSECRET MEMORANDUM ON THE CHINA REPORT REQUIRED TO BE PLACED IN A SAFE WOUND UP IN A FILE OTHERWISE CONTAINING NO OTHER MATERIAL OF A CLASSIFICATION HIGHER THAN 'SECRET' MR HISS ALSO NEGLECTED TO CLASSIFY MEMOS HE HIMSELF WROTE ON CONFIDENTIAL SUBJECTS AT THE OFFICE OF SPECIAL POLITICAL AFFAIRS TRANSFORMED BY MR HISS INTO A CLEARINGHOUSE OF TOPLEVEL INTELLIGENCE MATERIALS SECURITY LAXNESS WAS SO PRONOUNCED MR KLAUS CONCLUDED AS TO MAKE THE DEPARTMENT VULNERABLE TO PENETRATION IN THE INTERESTS OF OTHER GOVERNMENTS THE KLAUS FILES RAISE MANY TANTALIZING QUESTIONS WHY DID CONTACTS AT SWNCC AND OTHER OFFICES FORWARD TOPSECRET PAPERS TO ALGER HISS AND HIS STAFF AT OSPA WHAT OF THE STAFF MEMBERS THEMSELVES WHO HAD PROVED SO HELPFUL TO MR HISS WERE THEY WITTING ACCOMPLICES OR WERE THEY MISLED BY THEIR DIRECTOR AND WHAT BECAME OF THE EXTRA COPIES OF DOCUMENTS COPIED IN BULK AS YET WE DON'T KNOW WE DO KNOW THAT IN 1946 WHITTAKER CHAMBERS WHEN INTERVIEWED BY A STATE DEPARTMENT INVESTIGATOR SAID ALGER HISS'S PRIMARY ROLE IN THE SOVIET UNDERGROUND WAS TO MESS UP POLICY AS THE LEAK TO DREW PEARSON THREATENED TO DO AND WE KNOW TOO THAT ON SEPT 14 1946 TWO DAYS AFTER MR PEARSON'S ITEM RAN MR HISS HAD AN APPOINTMENT WITH AN OFFICIAL IN THE BRITISH EMBASSY WHO HAD AN ABIDING INTEREST IN GREECE AND IN MESSING UP ANGLOAMERICAN RELATIONS HE WAS DONALD MACLEAN LATER IDENTIFIED AS ONE OF THE CAMBRIDGE SPIES WHO DEFECTED TO MOSCOW IN 1951 FINALLY WE KNOW THAT ON DEC 10 SOON AFTER SAM KLAUS'S INQUIRY ENDED ALGER HISS RESIGNED FROM THE STATE DEPARTMENT AND LEFT THE GOVERNMENT THE FILES OF SAM KLAUS AND THEIR RECORD OF WIDESPREAD AND CONCERTED MISCONDUCT ARE NOT CLOSELY GUARDED IN BUDAPEST OR BURIED IN THE ARCHIVAL TOMBS OF MOSCOW THEY ARE OPEN TO ANY AND ALL WHO WISH TO STUDY THEM INCLUDING MR HISS'S DEFENDERS HOW WILL THEY EXPLAIN THIS TROUBLING CHAPTER IN THE CAREER OF A PUBLIC SERVANT THEY STILL PORTRAY AS A VICTIM OF A COLD WAR WITCH HUNT MR TANENHAUS IS WRITING A BIOGRAPHY OF WHITTAKER CHAMBERS TO BE PUBLISHED BY RANDOM HOUSE SEE RELATED LETTER LETTERS TO THE EDITOR ALGER HISS ANSWERS NEW CHARGES WSJ NOV 29 1993 9311180015 YY93 MM11 9311290074 931129 DEFENSE DEPARTMENT STILL PROBES AIR FORCE HANDLING OF C17 PLAN A WALL STREET JOURNAL ROUNDUP DEFENSE DEPARTMENT INVESTIGATORS HAVEN'T GIVEN UP ON THEIR PURSUIT OF WRONGDOING BY THE AIR FORCE IN ITS HANDLING OF THE CONTROVERSIAL MCDONNELL DOUGLAS CORP C17 MILITARYTRANSPORT PROGRAM PENTAGON DEPUTY INSPECTOR GENERAL DEREK VANDER SCHAAF CHARGED IN A LETTER TO THE SERVICE LAST WEEK THAT AIR FORCE REVIEWERS OMITTED IMPORTANT FINDINGS FROM THEIR INVESTIGATION LAST SPRING LEAVING THEIR REPORT SERIOUSLY FLAWED MR VANDER SCHAAF ALSO SAID INFORMATION UNCOVERED BY THE AIR FORCE MAY REVEAL POTENTIAL VIOLATIONS OF FEDERAL LAW A COPY OF HIS REPORT IS DESCRIBED IN TODAY'S EDITIONS OF DEFENSE WEEK A WASHINGTON NEWSLETTER THE C17 IS UNDER INTENSE SCRUTINY BY PENTAGON OFFICIALS WHO HAVE THREATENED TO SHARPLY CURTAIL PURCHASES OF THE ADVANCED AIRCRAFT IF ITS PROBLEMS AREN'T RESOLVED THE ORIGINAL AIR FORCE REVIEW WAS ORDERED BY DEFENSE SECRETARY LES ASPIN AFTER THE INSPECTOR GENERAL'S OFFICE ALLEGED IN JANUARY THAT TOP SERVICE OFFICIALS ENGAGED IN A PATTERN OF IMPROPER PRACTICES ON BEHALF OF MCDONNELL DOUGLAS IN 1990 AMONG THE ALLEGATIONS WERE CHARGES THAT THE AIR FORCE IMPROPERLY ACCELERATED PROGRESS PAYMENTS TO THE COMPANY AND ACCEPTED DELIVERY OF A C17 THAT DID NOT MEET CONTRACT SPECIFICATIONS THE AIR FORCE REVIEW EARLIER THIS YEAR FOUND ERRORS OF JUDGMENT BY SENIOR SERVICE OFFICIALS BUT NO IMPROPER CONDUCT MR ASPIN HOWEVER DISMISSED THE PROGRAM'S FORMER MANAGER AND BARRED THREE OTHER OFFICIALS FROM ACQUISITION DUTIES THE SERVICE OFFICIALS AND THE COMPANY HAVE DENIED ACTING IMPROPERLY 9311290073 931129 SEC NEARS DECISION ABOUT ENFORCEMENT ON FORGOTTEN SQUEEZE' IN '91 TREASURYS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE FORGOTTEN SQUEEZE IN APRIL 1991 TREASURY NOTES HASN'T BEEN FORGOTTEN BY THE SECURITIES AND EXCHANGE COMMISSION THE SEC IS FAR ALONG IN INVESTIGATING SUSPECTED SECURITIES LAW VIOLATIONS IN CONNECTION WITH THE SQUEEZE IN TWOYEAR TREASURY NOTES SOLD AT THAT TIME AND IS NEARING A DECISION ON WHETHER TO TAKE ENFORCEMENT ACTION ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE PROBE FOCUSES PRIMARILY ON TWO LEADING HEDGE FUNDS MICHAEL STEINHARDT'S STEINHARDT PARTNERS AND BRUCE KOVNER'S CAXTON CORP THESE PEOPLE SAID THE FUNDS WERE MENTIONED EARLY IN CONNECTION WITH INVESTIGATIONS INTO THE SALOMON BROTHERS INC SCANDAL AND A GRAND JURY HAS BEEN LOOKING INTO POSSIBLE ANTITRUST VIOLATIONS IN THE TREASURY MARKET BUT THE SEC WAS WIDELY BELIEVED TO HAVE COMPLETED ITS WORK ON THIS FRONT WHEN IT TOOK ENFORCEMENT ACTION AGAINST THE SALOMON INC UNIT LAST YEAR IN FACT THE SEC HAS BEEN CONDUCTING AN EXHAUSTIVE PROBE INTO THE CIRCUMSTANCES SURROUNDING THE APRIL NOTE SQUEEZE AND RELATED MATTERS THE EFFORT INVOLVES THE AGENCY'S MARKET REGULATION PERSONNEL AND ECONOMISTS AS WELL AS ENFORCEMENT STAFFERS THE SEC WILL COME TO DECISIONS SOON SAID A PERSON FAMILIAR WITH THE INVESTIGATION PAUL ROTH A LAWYER FOR STEINHARDT HAD NO COMMENT ON THE SEC INVESTIGATION RICHARD WIENER AN ATTORNEY FOR CAXTON ALSO DECLINED TO COMMENT ON THE MATTER AS DID THE SEC DUBBED THE FORGOTTEN SQUEEZE BY BOND MARKET PARTICIPANTS THE APRIL NOTE SQUEEZE WAS MORE SEVERE AND RAN LONGER THAN THE WIDELY PUBLICIZED SQUEEZE IN MAY 1991 TREASURY TWOYEAR NOTES THAT TRIGGERED FEDERAL INVESTIGATIONS INTO THE SALOMON SCANDAL NUMEROUS INVESTORS AND SOME DEALERS ARE SAID TO HAVE SUSTAINED LOSSES IN THE APRIL SQUEEZE THE SEC'S FARADVANCED INVESTIGATION CENTERS ON POSSIBLE MARKET MANIPULATION A MEMO PREPARED EARLY IN THE SEC'S SALOMON INVESTIGATION BY WILLIAM HEYMAN THE COMMISSION'S DIRECTOR OF MARKET REGULATION AT THAT TIME BUT WHO LATER WENT TO WORK FOR SALOMON BROTHERS SAID SQUEEZES CAN BE CAUSED BY NATURAL MARKET FORCES OR BY DELIBERATE MANIPULATIVE BEHAVIOR TO RESTRICT THE SUPPLY OF SECURITIES AND DRIVE PRICES UP THE MEMO SAID THE INTENTIONAL CREATION OF A SQUEEZE WOULD FALL WITHIN THE GENERAL ANTIFRAUD AND ANTIMANIPULATION PROVISIONS OF THE FEDERAL SECURITIES LAWS HEDGE FUNDS SUCH AS STEINHARDT AND CAXTON WHICH ARE LARGELY UNREGULATED PRIVATE INVESTMENT PARTNERSHIPS HAVE BECOME BIG PLAYERS IN THE TREASURY MARKET IN RECENT YEARS LEGISLATION JUST PASSED BY CONGRESS AUTHORIZES THE TREASURY DEPARTMENT TO REQUIRE MARKET PLAYERS INCLUDING HEDGE FUNDS TO REPORT THEIR POSITIONS IN TREASURY SECURITIES THIS PROVISION IS DESIGNED TO COMBAT MANIPULATIVE SQUEEZES THE HOUSE ENERGY AND COMMERCE COMMITTEE SAID IN ITS REPORT ON GOVERNMENT SECURITIES LEGISLATION THAT THE SHEER SIZE OF THE POSITIONS TAKEN BY HEDGE FUNDS AND THEIR LARGELY UNREGULATED NATURE HAVE RAISED SERIOUS CONCERNS REGARDING THEIR ABILITY TO MANIPULATE THE MARKET FOR GOVERNMENT SECURITIES WITHOUT DETECTION WHEN CONGRESS CLEARED A GOVERNMENT SECURITIES BILL BEFORE ADJOURNING LAST WEEK REP EDWARD MARKEY D MASS SAID THAT INVESTIGATIONS SOON MAY YIELD ENFORCEMENT RESULTS NOT ONLY ON POSSIBLE MARKET MANIPULATION BUT ALSO ON SUSPECTED NONCOMPETITIVE BIDDING ABUSES AND PREARRANGED GOVERNMENT SECURITIES TRADES AIMED AT GENERATING FALSE TAX LOSSES THE SEC DIDN'T ALLEGE MARKET MANIPULATION WHEN IT SUED SALOMON IN 1992 RATHER THE AGENCY'S CHARGES RELATED TO TREASURY AUCTION VIOLATIONS BUT THE JUSTICE DEPARTMENT CHARGED SALOMON WITH VIOLATING THE ANTITRUST LAWS BY CONSPIRING WITH OTHERS TO MANIPULATE THE MARKET FOR MAY 1991 NOTES SALOMON SETTLED THE ANTITRUST COMPLAINT PAYING MORE THAN 27 MILLION WITHOUT ADMITTING ANY WRONGDOING AS PART OF AN OVERALL 290 MILLION SETTLEMENT THE JUSTICE DEPARTMENT'S COMPLAINT DESCRIBED THE ALLEGED ILLEGAL BEHAVIOR IN THE MAY SQUEEZE AS FOLLOWS SALOMON AND ITS COCONSPIRATORS COORDINATED THEIR EFFORTS TO LIMIT THE SUPPLY OF MAY TWOYEAR NOTES AVAILABLE IN THE SECONDARY AND FINANCING MARKETS THEREBY ENSURING THAT PERSONS WHO HAD SOLD THE ISSUE SHORT IN THE WHENISSUED MARKET COULD OBTAIN MAY TWOYEAR NOTES ONLY BY PURCHASING THEM AT ARTIFICIALLY HIGH AND NONCOMPETITIVE PRICES IN THE SECONDARY MARKET OR BY BORROWING THEM IN EXCHANGE FOR CASH ON WHICH THEY RECEIVED LOW AND NONCOMPETITIVE SPECIAL RATES IN FINANCING TRANSACTIONS IN THE FINANCING MARKET A SHORT SALE IS A SALE OF A SECURITY THAT THE SELLER DOESN'T OWN IN THE TREASURY MARKET DEALERS OFTEN SELL SECURITIES SHORT TO CUSTOMERS OR OTHER DEALERS IN THE PREAUCTION MARKET KNOWN AS THE WHENISSUED MARKET WITH THE EXPECTATION OF COVERING THEIR SHORT POSITIONS BEFORE SETTLEMENT EITHER IN THE WHENISSUED MARKET THE AUCTION OR THE SECONDARY MARKET A SHORT SQUEEZE CAN OCCUR WHEN MARKET PARTICIPANTS SELL A SECURITY SHORT AND GET HIT WITH AN UNEXPECTED PRICE RISE IN THAT SECURITY THE KIND OF ALLEGED BEHAVIOR MENTIONED IN THE JUSTICE DEPARTMENT COMPLAINT IS BEING INVESTIGATED WITH REGARD TO THE APRIL 1991 NOTES ALTHOUGH SALOMON ISN'T A TARGET OF THE SEC INVESTIGATION OR OF A CONTINUING PROBE BY THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION FOLLOWING THROUGH ON THE ANTITRUST DIVISION'S PLEDGE TO PURSUE SALOMON'S UNNAMED COCONSPIRATORS A FEDERAL GRAND JURY WAS CONVENED MORE THAN A YEAR AGO TO INVESTIGATE SUSPECTED CRIMINAL VIOLATIONS IN CONNECTION WITH THE APRIL AND MAY 1991 SQUEEZES AND RELATED MATTERS 9311290072 931129 NOVELL IS EXPECTED TO UNVEIL TOMORROW NETWARE VIDEO LINE PROVO UTAH NOVELL INC PLANS TO ANNOUNCE TOMORROW NEW SOFTWARE DESIGNED TO LET PERSONALCOMPUTER NETWORKS STORE AND WORK WITH VIDEO AUDIO AND OTHER MULTIMEDIA INFORMATION THE SOFTWARE CALLED NETWARE VIDEO IS PART OF NOVELL'S STRATEGY TO MOVE BEYOND CONVENTIONAL NETWORK OPERATING SYSTEMS THAT HELP PC NETWORKS MANAGE PRIMARILY TEXT FILES IT IS THE FIRST PRODUCT TO RESULT FROM TECHNOLOGY ACQUIRED IN NOVELL'S JULY PURCHASE OF FLUENT INC A NATICK MASS SOFTWARE COMPANY NETWARE VIDEO IS EXPECTED TO BE AIMED AT BUSINESSES AND EDUCATIONAL INSTITUTIONS THAT WANT TO CENTRALLY MANAGE AND DELIVER COMPLEX INFORMATION SUCH AS TRAINING VIDEOS BY STORING SUCH LARGE DATA FILES ON A CENTRAL COMPUTER CALLED A SERVER USERS AVOID THE NEED FOR EACH DESKTOP COMPUTER TO HAVE A LARGE DISK DRIVE NOVELL SAYS THE PRODUCT EVENTUALLY WILL SUPPORT TWOWAY CONFERENCING WITH VIDEO OVER A NETWORK INFOWORLD A TRADE WEEKLY MAGAZINE REPORTS IN TODAY'S EDITIONS THAT NETWARE VIDEO WILL BE AVAILABLE DEC 8 AND IS EXPECTED TO COST LESS THAN 6000 FOR A LICENSE THAT SERVES 10 USERS THE MAGAZINE SAYS THE SYSTEM WILL USE AN ALGORITHM FROM INTEL CORP CALLED INDEO TO COMPRESS DATA SO IT CAN BE HANDLED BY A NETWORK INTERNATIONAL BUSINESS MACHINES CORP ALSO IS MOVING INTO THE FIELD WITH SOFTWARE CALLED LAN SERVER ULTIMEDIA DESIGNED FOR NETWORKS BASED ON IBM'S OS/2 LAN SERVER OPERATING SYSTEM THAT PRODUCT WILL START AT 3195 AND BE AVAILABLE DEC 10 INFOWORLD REPORTS 9311290071 931129 CREDIT RATINGS SENIOR DEBT RATING ON JAPAN AIR LINES CO IS LOWERED BY S&P LONDON STANDARD & POOR'S CORP LOWERED ITS RATINGS ON THE SENIOR DEBT OF JAPAN AIR LINES CO TO SINGLEA FROM SINGLEAPLUS DUE TO WHAT IT CALLED THE AIRLINE'S CONTINUED POOR RESULTS THE RATINGS AGENCY CITED THE COMPANY'S OPERATING LOSS FOR ITS FISCAL FIRST HALF AND THE EXPECTATION OF AN OPERATING LOSS FOR THE FULL FISCAL YEAR WHICH ENDS MARCH 31 JAL SUFFERS FROM A HIGH COST BASE RELATIVE TO OTHER INTERNATIONAL AIRLINES S&P SAID DESPITE COST REDUCTION THE AIRLINE'S EFFORTS HAVE NOT BEEN SUFFICIENT TO OFFSET THE EFFECTS OF THE PROLONGED WEAK DEMAND REDUCED BUSINESSPASSENGER TRAFFIC AND THE HIGHER YEN THE RATINGS AGENCY ADDED THAT THE COMPANY IS GRADUALLY EXPECTED TO RETURN TO PROFITABILITY BUT WILL NOT REACH HISTORICAL LEVELS OVER THE MEDIUM TERM DUE TO THE EXTREME DIFFICULTY OF IMPROVING EFFICIENCY AMIDST ADVERSE INDUSTRY CONDITIONS S&P POINTED OUT THAT JAL STILL BENEFITS FROM ITS STRONG POSITION AS THE LEADING CARRIER IN JAPAN AND THAT IT MAINTAINS THE LARGEST SHARE OF INTERNATIONAL ROUTES FLYING INTO AND OUT OF JAPAN HOWEVER THE AGENCY'S REPORT SAID THE AIRLINE'S RATING OUTLOOK IS NEGATIVE JAL'S RATINGS COULD BE LOWERED IF THE COMPANY DOES NOT REDUCE COSTS AND RENEW ITS COMPETITIVENESS AS EXPECTED 9311290070 931129 LETTERS TO THE EDITOR BIG UNKNOWNS DEFEATED SCHOOL CHOICE IN RESPONSE TO JOHN J MILLER'S NOV 3 EDITORIALPAGE ARTICLE WHY SCHOOL CHOICE LOST SITTING IN THE MIDDLE OF THE PROPOSITION 174 SCHOOL VOUCHER CAMPAIGN MANY OF US HAVE A DIFFERENT VIEW OF WHY IT LOST MR MILLER OPINES THAT THE SUBURBANITES FOR A VARIETY OF REASONS WERE AGAINST THE MEASURE ENSURING ITS DEFEAT THAT MAY NOT BE AN ACCURATE ASSESSMENT MOST SEEMED TO FAVOR THE IDEA BUT ULTIMATELY VOTED AGAINST THE MEASURE BECAUSE 1 IT WAS AN UNTRIED IDEA ON THE SCALE PROPOSED 2 IT WOULD HAVE BECOME PART OF THE STATE CONSTITUTION AND WOULD HAVE BEEN NEARLY IMPOSSIBLE TO REMOVE 75 VOTE REQUIRED 3 THE FINANCIAL IMPACT COULD NOT BE MEASURED AND 4 THE POOR PEOPLE READ MINORITIES THOUGHT THAT THE RICH PEOPLE READ WHITE MIDDLE CLASS WOULD LEAVE THE SYSTEM TAKING ALL OF THE SYSTEM'S MONEY WITH THEM ADD TO THIS THE VERY SIZE AND ALLENCOMPASSING NATURE OF THE BILL AND IT IS EASY TO SEE WHY SO MANY VOTED AGAINST IT JUST TOO MUCH FEAROFTHEUNKNOWN WITHOUT SOLID ASSURANCES THAT IT WOULD PROVIDE A BETTER EDUCATIONAL SYSTEM NEXT TIME AND THERE WILL BE A NEXT TIME PROPOSITION 13 WAS DEFEATED THREE TIMES BEFORE PASSAGE THERE SHOULD BE A TEST MARKET IN A COUNTY OR TWO WHEREIN ALL OF THE ABOVE PROBLEMS COULD BE SORTED OUT AND MODIFIED AS NECESSARY AND THEN PROJECTED STATEWIDE THIS WOULD EFFECTIVELY REMOVE ALL OF THE UNKNOWN FACTORS AND IN FACT WOULD GIVE THE CITIZENS A TRUE PICTURE OF HOW THE SYSTEM WOULD WORK ISN'T THAT WHAT IS HAPPENING IN MILWAUKEE MR MILLER MISSED ONE CRUCIAL FACTOR THE METHOD OF FINANCING OUR SCHOOL SYSTEMS IS A PRIME DETERMINANT OF OUR ASSESSMENT OF OUR OWN LOCAL SYSTEM THE VAST MAJORITY OF OUR SCHOOLS ARE FUNDED THROUGH THE MUNICIPAL OR DISTRICT PROPERTY TAX AMERICANS HAVE VOTED WITH THEIR FEET TO SEEK OUT GOOD SCHOOL SYSTEMS THE FLIGHT FROM THE URBAN AREAS TO THE SUBURBAN COMMUNITIES BY PARENTS LOOKING FOR A BETTER SCHOOL SYSTEM CANNOT BE DISPUTED THE AMOUNT OF PROPERTY TAX BURDEN ONE CAN AFFORD INFLUENCES THE COMMUNITY SELECTED WITH THIS RESIDENTS OF MIDDLEINCOME TO AFFLUENT COMMUNITIES WILL GENERALLY SUPPORT AND HOLD THEIR RESPECTIVE SCHOOL DISTRICTS IN HIGH REGARD WHAT WILL HAPPEN WHEN THE METHOD OF FINANCING TURNS AWAY FROM THE LOCAL PROPERTY TAX TO WHAT THE COURTS ARE POISED TO DETERMINE TO BE A MORE EQUITABLE MANNER THE STATE ASSUMING A SCALE OF FUNDING PROPORTIONALLY EQUAL TO THE PROPERTY TAX CURRENTLY THIS SHOULD RESULT IN A REDUCTION IN THE PROPERTY TAX AND SHIFTING OF THE BURDEN TO THE INCOME TAX WITH REQUISITE INCREASES IN THE INCOME TAX LEVY THE RESULT WILL BE A MELDING OF THE QUALITY OF OUR PUBLIC SCHOOLS THE FAILING URBAN SCHOOLS WILL SEE GREATER FINANCING BECAUSE OF THEIR INEFFICIENCIES THE SUCCESSFUL SUBURBAN SCHOOLS WILL LOSE FINANCING RESOURCES AND WILL EXPERIENCE A DEGRADATION ONLY THE TRULY AFFLUENT DISTRICTS WILL HAVE THE CAPACITY TO SUPPLEMENT THE SCHOOLS WITH INCREASED PROPERTY TAXES WHEN THE PARENTS IN THE DISTRICTS THAT WILL HAVE DIMINISHED CAPACITY TO PROVIDE QUALITY EDUCATION REALIZE THAT THEIR ECONOMIC RESOURCES ARE BEING SPENT TO KEEP FAILED URBAN SCHOOL DISTRICTS OPERATING THEN SCHOOL CHOICE HAS A CHANCE TO SUCCEED PROPOSITION 174 WAS PREMATURE NOT MISTAKEN MR MILLER THINKS HE HAS THE BIG PICTURE IN FOCUS SCHOOL CHOICE FAILED IN CALIFORNIA BECAUSE REPUBLICAN VOTERS DIDN'T WANT IT SORRY MR MILLER BUT YOU'RE STILL FUZZY THE PRIVATE SCHOOL VOUCHER BILL WAS EVEN LESS ABOUT PARTY POLITICS THAN IT WAS ABOUT CHOICE THE BILL WAS RESOUNDINGLY DEFEATED 70 VOTING NO BECAUSE WE CALIFORNIANS REFUSE TO SUBSIDIZE THE WEALTHY FOR PUTTING THEIR KIDS IN PRIVATE SCHOOLS MR MILLER'S THEORY OF A SUCCESSFUL SCHOOL CHOICE REFERENDUM RALLYING THE MTV GENERATION IS EQUALLY FLAWED WHILE THOSE OF US WITHOUT CHILDREN ACCEPT PAYING TAXES FOR PUBLIC SCHOOLING AS PART OF THE COMMON GOOD DON'T EXPECT TO SEE US CARRY THE FLAG FOR GIVING TAX VOUCHERS TO THOSE WHO CHOOSE NOT TO PARTICIPATE IN THE PUBLIC SCHOOL SYSTEM 9311290069 931129 CANADA POST PURCHASE APPROVED FOR INTEREST IN PUROLATOR COURIER OTTAWA CANADA'S ANTITRUST DEPARTMENT APPROVED CANADA POST CORP'S PROPOSED ACQUISITION OF A MAJORITY INTEREST IN PUROLATOR COURIER LTD THE COUNTRY'S LARGEST COURIER COMPANY CANADA POST A GOVERNMENT AGENCY OPERATES CANADA'S POSTAL SYSTEM IT AGREED EARLIER THIS YEAR TO ACQUIRE A 75 INTEREST IN PUROLATOR COURIER FROM ONEX CORP A TORONTO HOLDING COMPANY FOR 55 MILLION CANADIAN DOLLARS US414 MILLION ONEX WILL RETAIN A MINORITY INTEREST IN PUROLATOR CANADA'S BUREAU OF COMPETITION POLICY SAID THE ACQUISITION WASN'T LIKELY TO LESSEN COMPETITION IN THE COURIER INDUSTRY PUROLATOR CONTROLS ABOUT 40 OF THE CANADIAN COURIER MARKET THE BUREAU SAID THERE WAS NO EVIDENCE TO INDICATE THAT CANADA POST WOULD USE REVENUE FROM ITS MONOPOLY MAIL SERVICE UNFAIRLY TO SUBSIDIZE ITS COURIER AND PARCEL OPERATIONS THE ACQUISITION HAD BEEN OPPOSED BY CANADA POST'S COMPETITORS IN THE COURIER INDUSTRY CANADA'S NATIONAL TRANSPORTATION AGENCY ANOTHER GOVERNMENT REGULATORY AGENCY HAD APPROVED THE ACQUISITION 9311290068 931129 ECONOMY CLINTON WANTS TO ALLOW US SUBSIDIES FOR FIRMS THAT HIRE WELFARE RECIPIENTS BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AS PART OF ITS PLAN TO OVERHAUL THE NATION'S WELFARE SYSTEM WANTS TO ALLOW GOVERNMENT SUBSIDIES FOR EMPLOYERS WHO HIRE WELFARE RECIPIENTS AND TO PUT OTHERS INTO COMMUNITY SERVICE WORK PRESIDENT CLINTON LISTED WELFARE REFORM AMONG HIS CAMPAIGN PROMISES AND HAS OUTLINED A BROAD PLAN TO REQUIRE PARENTS TO WORK AFTER A TWOYEAR STINT ON THE WELFARE ROLLS THE PRESIDENT'S ADVISERS ARE CONSIDERING MANY OPTIONS FOR WAYS TO CREATE THOSE JOBS THEY SAY AN ADMINISTRATION WELFARE TASK FORCE IS TO PRESENT OPTIONS TO THE PRESIDENT NEXT MONTH AND PLANS TO HAVE LEGISLATION ON CAPITOL HILL EARLY NEXT YEAR JOB SUBSIDIES WHICH WERE MENTIONED IN A NEW YORK TIMES ARTICLE YESTERDAY MAY BE ONE RELATIVELY EASY FIRST STEP STATES ARE ALREADY PERMITTED TO SUBSIDIZE EMPLOYERS WHO HIRE WELFARE RECIPIENTS BUT ONE STRICT STIPULATION APPLIES SUBSIDIZED JOBS MUST BE NEWLY CREATED NEW LEGISLATION WOULD BE REQUIRED TO ALLOW SUBSIDIES FOR EMPLOYERS WHO PUT WELFARE RECIPIENTS INTO EXISTING JOBS LAST YEAR'S URBAN AID LEGISLATION WOULD HAVE EXPANDED THE USE OF GOVERNMENT SUBSIDIES IN JUST THAT WAY BUT PRESIDENT BUSH VETOED THE BILL FOR OTHER REASONS THE NOTION IS TO EXPOSE WELFARE PARENTS TO THE WORLD OF WORK AND GIVE THEM SOME EXPERIENCE TO BUILD UPON IT'S JUST ONE PIECE OF A BROADER PLAN SAID BRUCE REED A SENIOR DOMESTIC AFFAIRS ADVISER TO PRESIDENT CLINTON WHAT'S IMPORTANT TO US IS TO PUT A STRONG EMPHASIS ON CONNECTING WELFARE RECIPIENTS TO THE PRIVATE SECTOR BUT IT'S HIGHLY UNLIKELY IN SUCH A TEPID ECONOMY THAT JOB SUBSIDIES ALONE WOULD SUFFICE TO PUT WELFARE RECIPIENTS TO WORK AFTER TWO YEARS THERE ARE NOW ABOUT 15 MILLION PEOPLE WHO HAVE CHILDREN OVER THE AGE OF SIX AND HAVE BEEN ON WELFARE FOR MORE THAN TWO YEARS ACCORDING TO CONGRESSIONAL RESEARCHERS THERE WILL BE SOME COMMUNITY SERVICE JOBS THAT NEED TO BE CREATED THERE'S NO QUESTION SAID MR REED THOSE SORTS OF JOBS HAVE BEEN TRIED WITH VARYING SUCCESS IN THE PAST BY MANY STATES BUT IT HAS BEEN DIFFICULT TO CREATE REAL WORK BECAUSE PUBLIC EMPLOYEE UNIONS HAVE FOUGHT OFF ATTEMPTS TO ALLOW WELFARE RECIPIENTS TO DO MANY GOVERNMENT JOBS REPUBLICANS ON CAPITOL HILL HAVE ALSO INTRODUCED THEIR OWN PLAN TO CHANGE WELFARE WHICH IS SIMILAR IN MANY WAYS IT CALLS FOR REQUIRED WORK OR TRAINING FOR WELFARE RECIPIENTS A REQUIREMENT TO ESTABLISH PATERNITY FOR WELFARE CHILDREN AND TO HAVE SUBSTANCE ABUSERS ON WELFARE UNDERGO REHABILITATION PROGRAMS AND SUBMIT TO RANDOM DRUG TESTS THE ADMINISTRATION HAS ALREADY DEMONSTRATED ITS INTENT TO REFORM WELFARE IN SOME WAYS MAINLY BY GIVING STATES MORE LEEWAY TO EXPERIMENT WITH THEIR WELFARE LOADS LAST MONTH IN THE MOST TELLING EXAMPLE THE ADMINISTRATION APPROVED A WISCONSIN PLAN TO CONDUCT THE MOST STRINGENT EXPERIMENT YET LIMITING WELFARE PAYMENTS TO TWO YEARS WITH NO GUARANTEE OF A JOB AFTERWARD THE EXPERIMENT IS LIMITED TO TWO COUNTIES THE DEPARTMENT OF HEALTH AND HUMAN SERVICES MUST APPROVE INDIVIDUAL STATE'S WELFAREREFORM PLANS 9311290067 931129 TECHNOLOGY & SCIENCE SHUTTLE AIMS TO FIX HUBBLE AND MORE NASA HOPES ASTRONAUTS CAN REPAIR TELESCOPE SPACE AGENCY'S IMAGE BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER A SERIES OF HOHUM MISSIONS PUNCTUATED BY SUCH FEATS AS BEHEADING RATS IN ORBIT AND PERFORMING MICROGRAVITY TRICKS FOR SCHOOL KIDS AMERICA'S SPACE SHUTTLE IS ABOUT TO DO SOMETHING USEFUL THE SHUTTLE ENDEAVOUR IS TO BLAST OFF WEDNESDAY ON THE WORLD'S MOST EXPENSIVE SERVICE CALL THE MISSION IS TO REPAIR THE 15 BILLION HUBBLE SPACE TELESCOPE HANDICAPPED SINCE LAUNCH BY AN EMBARRASSING CASE OF NEARSIGHTEDNESS DUE TO A MANUFACTURING FLAW IN ITS MAIN MIRROR THE REPAIR BILL INCLUDING TRANSPORTATION IS ESTIMATED AT 629 MILLION BUT THE MISSION'S IMPORTANCE CAN'T BE MEASURED IN DOLLARS ALONE IN TERMS OF PUBLIC PERCEPTION OF NASA WHICH TRANSLATES INTO POLITICAL SUPPORT WHICH TRANSLATES INTO BUDGET SUPPORT THIS IS ONE OF THE MORE IMPORTANT MISSIONS FLOWN IN SOME TIME SAYS JOHN PIKE SPACE ANALYST FOR THE AMERICAN FEDERATION OF SCIENTISTS THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BADLY NEEDS A RINGING SUCCESS TO BREAK THIS YEAR'S STRING OF SPACE FIASCOS PARTICULARLY THE MYSTERIOUS DISAPPEARANCE OF ITS 1 BILLION MARS OBSERVER THREE OTHER SATELLITES ALSO WERE LOST UPON LAUNCH AND THEIR FAILURES WERE LUMPED TOGETHER WITH NASA'S WOES IN THE PUBLIC EYE EVEN THOUGH THE SATELLITES BELONGED TO OTHER AGENCIES THE FLIGHT ALSO OFFERS A RARE CHANCE TO USE THE SPACE SHUTTLE AS IT WAS INTENDED CREATED AS A SPACE TRUCK FOR HAULING CARGO AND PASSENGERS TO AND FROM SPACE DESTINATIONS THE SHUTTLE INSTEAD HAS HAD NOWHERE TO GO FOR THE MOST PART AND FOR THE FIRST TIME SINCE THE 1986 CHALLENGER ACCIDENT THE MISSION HAS THE POTENTIAL TO RECAPTURE SOME OF AMERICA'S LOST INFATUATION WITH AND AWE OF SPACE TRAVEL AT A TIME WHEN THE SPACE PROGRAM MOSTLY HAS BEGUN TO LOOK LIKE A TASTY PLACE FOR MORE BUDGETCUTTING BITES THE FLIGHT IS THE MOST DIFFICULT AND CHALLENGING SHUTTLE MISSION NASA HAS ATTEMPTED FEATURING BUCK ROGERSTYPE DERRINGDO FOUR ASTRONAUTS TAKING TURNS ARE TO SPEND FIVE TO SEVEN DAYS WORKING OUTSIDE THE SPACECRAFT MORE TIME THAN EVER ON PRECARIOUS SPACE WALKS THEIR JOB FLOATING OUTSIDE THE ORBITER MORE THAN 300 MILES ABOVE THE EARTH IS TO CAPTURE THE BUSSIZED HUBBLE TELESCOPE WITH A MECHANICAL ARM AND THEN TO REPLACE INSTRUMENTS RANGING FROM TINY FUSES TO A 600POUND INSTRUMENT THEIR WORK IS A DRESS REHEARSAL OF THINGS TO COME IF THE US CONSTRUCTS A SPACE STATION IN ORBIT LATER THIS CENTURY IF THE MISSION IS A FULL SUCCESS THE HUBBLE WILL BE FITTED WITH CORRECTIVE MIRROR LENSES THAT RESTORE VIRTUALLY ALL OF THE TELESCOPE'S VISION OTHER BACKUP PARTS THAT KEEP THE TELESCOPE OPERATING SUCH AS ALLIMPORTANT SOLAR PANELS WILL BE REPLACED IF ONLY PART OF THE WORK IS COMPLETED THE TELESCOPE LIKELY COULD KEEP OPERATING AT ITS LIMITED CAPACITY AND NASA WOULD SCHEDULE ANOTHER FLIGHT IN SIX MONTHS TO A YEAR TO TRY AGAIN AT A COST OF HUNDREDS OF MILLIONS OF DOLLARS BUT THE RISKS ARE BIG A SLIPUP OR MECHANICAL FAILURE COULD PUT THE TELESCOPE OUT OF OPERATION COMPLETELY DOING LONGTERM DAMAGE TO SUPPORT FOR THE SPACE PROGRAM NASA IS BEING CAREFUL NOT TO INFLATE EXPECTATIONS I FULLY EXPECT WE WILL RUN INTO PROBLEMS SOMEWHERE SAYS MILT HEFLIN ENDEAVOUR'S LEAD FLIGHT DIRECTOR BUT THERE IS GREAT PRESSURE TO ERASE THE EMBARRASSMENT OF THE HUBBLE SPACE TELESCOPE BUILT TO BE THE GREATEST SCIENTIFIC INSTRUMENT EVER PUT IN ORBIT AND TO IN SOME WAYS SURPASS FARBIGGER TELESCOPES ON EARTH WITHIN A FEW WEEKS OF THE HUBBLE'S LAUNCH IN 1990 NASA WAS HORRIFIED TO FIND THAT THE SEVENFOOT PRIMARY MIRROR WAS GROUND TOO FLAT AROUND THE EDGES SO THE TELESCOPE COULDN'T SEE AS FAR OR AS CLEARLY AS INTENDED THE MIRROR'S MANUFACTURERS HAVE SINCE AGREED TO PAY 25 MILLION TO SETTLE GOVERNMENT CLAIMS OVER THE DEFECT THE PROBLEM WOULD HAVE COST ONLY 17 MILLION TO REPAIR IF IT HAD BEEN DETECTED BEFORE THE TELESCOPE WAS LAUNCHED THROUGH COMPUTER ENHANCEMENT HUBBLE HAS BEEN ABLE TO RETURN UNPRECEDENTED IMAGES OF NEARBY PLANETS AND BRIGHT STARS TRACKING STORMS ON SATURN AND PHOTOGRAPHING WHAT COULD BE THE FIRST CIRCUMSTANTIAL EVIDENCE OF MASSIVE BLACK HOLES BUT THE MISSHAPEN MIRROR DISTORTS THE REFLECTED LIGHT MEANING IMAGES ARE FUZZY FAINT OBJECTS CAN'T BE SEEN AND INDIVIDUAL STARS CAN'T BE SEPARATED OUT OF CROWDED FIELDS IF THE REPAIR IS SUCCESSFUL THE TELESCOPE SHOULD GAIN 10 TO 15 TIMES MORE SENSITIVITY AND SEE OBJECTS THREE TO FOUR TIMES FARTHER AWAY NASA SCIENTISTS SAY A FULLY REPAIRED HUBBLE COULD HELP FIND THE EDGE OF THE UNIVERSE MEASURE ITS SIZE REFINE ESTIMATES OF ITS AGE AND GAIN FURTHER EVIDENCE OF BLACK HOLES THE KEY TO FIXING THE TELESCOPE'S VISION LIES IN TWO INSTRUMENTS COSTING 87 MILLION THAT ARE THE EQUIVALENT OF AN EYEGLASS PRESCRIPTION A PHONEBOOTHSIZED BOX FITTED WITH 10 MIRRORS RANGING IN SIZE FROM A DIME TO A QUARTER WILL REFOCUS THE STARLIGHT CAPTURED IN THE TELESCOPE TO SHARPEN THE IMAGES FED INTO THREE INSTRUMENTS INCLUDING A FAINTOBJECT CAMERA SECONDLY THE WIDE FIELD AND PLANETARY CAMERA ON BOARD WHICH WILL DO 40 TO 50 OF THE SCIENCE WORK OVER THE NEXT YEAR IS TO BE REPLACED WITH A NEW ONE WITH CORRECTIVE MIRRORS THE TELESCOPE ALSO IS HAVING SOME LESSWELLKNOWN MECHANICAL PROBLEMS THAT COULD JEOPARDIZE ITS USE IF NOT REPAIRED THREE OF SIX GYROSCOPES WHICH HELP POINT THE TELESCOPE IN THE RIGHT DIRECTION HAVE FAILED LEAVING NO BACKUPS AND A CRITICAL PROBLEM IF ONE MORE BREAKS THE SOLAR PANELS WHICH COLLECT SUNLIGHT AND SUPPLY ELECTRICITY JITTER WHEN THE SPACECRAFT MOVES IN AND OUT OF SUNLIGHT NOT ONLY DISTURBING THE COLLECTION OF DATA BUT WEARING OUT THE PANELS' FRAMEWORK AHEAD OF SCHEDULE WHILE SOME REPAIRS LIKE ELECTRICAL CONNECTIONS WILL BE VERIFIED QUICKLY THE SUCCESS OF OTHER REPAIRS WON'T BE KNOWN UNTIL WEEKS AFTER THE SHUTTLE ENDS ITS 11DAY TRIP NASA SAYS IT WILL BE SEVEN WEEKS OR MORE WHILE SCIENTISTS ADJUST THE OPTICS BEFORE IT'S KNOWN WHETHER HUBBLE'S VISION IS FULLY REPAIRED ALTHOUGH THE MOST CRITICAL THIS HUBBLE REPAIR MISSION WON'T BE THE LAST THE TELESCOPE IS THE FIRST INSTRUMENT DESIGNED FOR INORBIT SERVICING AND NASA PLANS FURTHER MAINTENANCE CALLS OVER THE NEXT 12 YEARS 9311290066 931129 COURT BLOCKS RAFI KHAN BID TO CONTROL ICN JUDGE GRANTS DRUG FIRM'S PLEA ON FINDING BROKER HAD ROLE IN UK FRAUD BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL COURT HERE GRANTED ICN PHARMACEUTICALS INC'S REQUEST TO BLOCK STOCKBROKER RAFI KHAN'S ATTEMPT TO TAKE CONTROL OF ICN AFTER FINDING THAT MR KHAN DEFRAUDED THE BRITISH GOVERNMENT IN A 1986 SECURITIES SCHEME US DISTRICT JUDGE JOHN SPRIZZO AGREED TO ICN'S REQUEST TO BLOCK MR KHAN'S PLAN TO UNSEAT ICN'S CURRENT MANAGEMENT THROUGH A CONSENT SOLICITATION WHICH REQUIRES APPROVAL BY HOLDERS OF A MAJORITY OF ICN'S TOTAL SHARES OUTSTANDING THE COSTA MESA CALIF DRUG COMPANY IS HEADED BY MILAN PANIC A FORMER PRIME MINISTER OF YUGOSLAVIA IN AN ORAL RULING LACED WITH HARSH DENUNCIATIONS OF MR KHAN JUDGE SPRIZZO DESCRIBED THE STOCKBROKER'S TESTIMONY AS INCREDIBLE AND UNTRUTHFUL THE RULING MADE ON FRIDAY COULD DRASTICALLY ERODE SHAREHOLDER SUPPORT FOR MR KHAN WHO HAS SAID THAT LARGE INSTITUTIONAL SHAREHOLDERS WILL VOTE WITH THEIR WALLETS AND SUPPORT HIM IN ADDITION THE JUDGE SAID HE PROBABLY WILL ASK AMERICAN LAWENFORCEMENT AUTHORITIES TO INVESTIGATE MR KHAN'S INVOLVEMENT IN THE BRITISH GAS PLC SCHEME TO LEARN WHETHER MR KHAN COMMITTED PERJURY AT THE HEARINGS THE JUDGE'S DECISION FOLLOWS COURT HEARINGS HELD OVER TWO WEEKS THAT WERE PEPPERED WITH LIVELY TESTIMONY OF A FAMILY FEUD EMBEZZLEMENT AND A KIDNAPPING THE JUDGE'S DECISION MEANS THAT A DEC 15 SHAREHOLDER MEETING WHICH COULD HAVE CONCLUDED THE CONSENTSOLICITATION FIGHT PROBABLY WILL BE POSTPONED ANY SHAREHOLDER VOTES MR KHAN MAY HAVE RECEIVED SO FAR AS A RESULT OF HIS SOLICITATION ARE CANCELED AN ATTORNEY FOR ICN SAID ACCORDING TO ICN'S LAWSUIT MR KHAN FAILED TO PROPERLY DISCLOSE IN HIS CONSENTSOLICITATION MATERIALS THAT HE WAS THE SUBJECT OF A CRIMINAL INVESTIGATION IN THE UK ON FRIDAY THE JUDGE CONCLUDED THAT MR KHAN'S INVOLVEMENT IN THE SCHEME IS A CRUCIAL TEST OF WHETHER HE IS FIT' TO TAKE CONTROL OF ICN MR KHAN CAN APPEAL THE JUDGE'S RULING IN HIS TESTIMONY MR KHAN CONTENDED THAT HE HAD NEVER HEARD OF BRITISH GAS PLANS TO GO PRIVATE DURING 19861987 IN ADDITION HIS ATTORNEYS PRESENTED MR KHAN'S PASSPORT TO SHOW THAT HE HADN'T BEEN IN THE UK WHEN KEY ASPECTS OF THE SCHEME COULD HAVE BEEN HATCHED ICN'S LAWYERS COUNTERED BY PROVIDING EVIDENCE SUGGESTING THAT MR KHAN MAY HOLD MORE THAN ONE PASSPORT EARLIER IN THE HEARINGS A WITNESS FOR ICN TESTIFIED THAT MR KHAN HAD MASTERMINDED A SCHEME TO CREATE HUNDREDS OF APPLICATIONS TO BUY BRITISH GAS SHARES THE BRITISH GOVERNMENT HOWEVER HAD IMPOSED RESTRICTIONS ON THE NUMBER OF SHARES AN INDIVIDUAL COULD BUY THE JUDGE REPEATEDLY EXPRESSED ANGER THAT PERJURY MIGHT HAVE BEEN COMMITTED IN HIS COURT GIVEN MR KHAN'S KNOWLEDGE OF SECURITIES IT IS INCONCEIVABLE TO ME THAT HE WAS UNAWARE OF THE SALE OF BRITISH GAS SHARES THE JUDGE SAID WHAT MR KHAN DOES IN THE MARKET IS ONE THING WHAT HE DOES IN MY COURTROOM IS ANOTHER IN AN ICN PROCEEDING EARLIER THIS YEAR THE US SECOND COURT OF APPEALS OVERTURNED A DECISION BY JUDGE SPRIZZO THAT MR KHAN HAD LIED IN COURT THE CREDIBILITY OF THE WITNESSES PRESENTED BY BOTH SIDES WAS CLEARLY AN IMPORTANT FACTOR IN JUDGE SPRIZZO'S FINAL RULING ICN'S FIRST WITNESS TAHIR KHAN A COUSIN OF RAFI KHAN SAID THE STOCKBROKER HAD MASTERMINDED THE BRITISH GAS SCHEME TAHIR KHAN WAS FINED IN BRITAIN FOR HIS INVOLVEMENT RAFI KHAN WAS NEVER CHARGED ICN'S SECOND WITNESS JACKIE MALTON A SCOTLAND YARD DETECTIVE PRODUCED EVIDENCE AGAINST MR KHAN AND ADDED THAT SHE WOULD ARREST THE STOCKBROKER IN THE UK FOR HIS INVOLVEMENT REGARDING THE BRITISH GAS AFFAIR CONTRADICTING THEIR VERSION OF EVENTS PETER J MCGILL AN ENGLISH BUSINESSMAN AND CHILDHOOD FRIEND OF MR KHAN TESTIFIED THAT TO HIS KNOWLEDGE RAFI KHAN HADN'T PLAYED ANY ROLE IN FILLING OUT ILLEGAL SHARE APPLICATIONS HIS STORY WAS CORROBORATED BY HIS ASSOCIATE WALTER PATTERSON BUT JUDGE SPRIZZO DESCRIBING MESSRS MCGILL AND PATTERSON AS CREATURES OUT OF THE UNDERWORLD SAID HE BELIEVED TAHIR KHAN'S TESTIMONY OVER RAFI KHAN'S AND FOUND THE SCOTLAND YARD DETECTIVE'S DOCUMENTS PRETTY INCRIMINATING THE JUDGE'S RULING EVEN IF APPEALED MAY FURTHER ERODE RAFI KHAN'S CREDIBILITY AS SOMEONE WHO CAN PLAY A PIVOTAL ROLE IN BOOSTING ICN'S FORTUNES AS A DRUG COMPANY ICN'S MAIN PROPRIETARY DRUG RIBAVIRIN IS A TREATMENT FOR A RARE LUNG DISEASE IN INFANTS BUT IT ALSO APPEARS TO BE A PROMISING TREATMENT FOR HEPATITIS C A LIVER AILMENT AFFLICTING ABOUT 100 MILLION PEOPLE WORLDWIDE MAJOR STUDIES ON SUCH TREATMENT ARE EXPECTED SOON IN LAUNCHING HIS CONSENTSOLICITATION FIGHT FOR ICN MR KHAN HAS ASSERTED THAT ICN'S CHAIRMAN MR PANIC WAS OVERLY COMPENSATED AND PARTLY RESPONSIBLE FOR THE COMPANY'S RUNINS WITH REGULATORS HOWEVER IN ADDITION TO THE LATEST TWIST IN THE BATTLE FOR ICN MR KHAN FACES POTENTIALLY DAMAGING DISCLOSURES RELATING TO HIS ACTIVITIES AT ICN AND AT OTHER COMPANIES WHOSE STOCK HE HAS PROMOTED INCLUDING FUTURE COMMUNICATIONS INC A DALLAS CABLE CONCERN 9311290065 931129 TECHNOLOGY COLLABORATIVE RESEARCH TO DEVELOP DNA METHOD CAMBRIDGE MASS COLLABORATIVE RESEARCH INC SAID IT NEGOTIATED AN EXCLUSIVE LICENSE FOR COMMERCIAL DEVELOPMENT OF HARVARD MEDICAL SCHOOL'S PATENTED DNA SEQUENCING TECHNOLOGY THERE ARE A NUMBER OF COMPUTERASSISTED TECHNIQUES FOR SEQUENCING OR MAPPING DNA THE BASIC GENETIC CODE DETERMINING CELL FUNCTION COLLABORATIVE SAID HARVARD'S TECHNIQUE IS PARTICULARLY POWERFUL AND WILL BE ITS KEY TECHNOLOGY FOR DEVELOPING DISEASE TREATMENTS THE BIOTECHNOLOGY COMPANY DECLINED TO DISCLOSE TERMS COLLABORATIVE SAID IT HAS BEEN USING THE TECHNIQUE IN ITS RESEARCH TO SEQUENCE THE CAUSES OF TUBERCULOSIS AND LEPROSY UNDER A 5 MILLION GRANT FROM THE NATIONAL CENTER FOR HUMAN GENOME RESEARCH ONCE THE DNA RELATED TO TUBERCULOSIS IS MAPPED IT HOPES TO DEVELOP DRUGS THAT COULD TREAT DRUGRESISTANT MUTATIONS THAT HAVE EMERGED IN RECENT YEARS 9311290064 931129 INTERNATIONAL PROBE LAUNCHED OF SHIFTS IN EURO DISNEY SHARE PRICE PARIS THE FRENCH STOCKMARKET WATCHDOG LAUNCHED AN INVESTIGATION INTO THE RECENT SHARP SHARE PRICE MOVEMENTS OF EURO DISNEY SCA THE OPENING OF AN OFFICIAL INQUIRY COMES TWO DAYS AFTER EURO DISNEY SHARES SAW A MELTDOWN AT THE PARIS BOURSE LOSING MORE THAN 17 OF THEIR VALUE IN TRADING WEDNESDAY THE SHARES FELL FURTHER THURSDAY BEFORE REBOUNDING 81 AND RISING ANOTHER 51 FRIDAY ON NOV 12 THE COMMISSION DES OPERATIONS DE BOURSE OR COB HAD SAID IT WOULD SCRUTINIZE TRADING ACTIVITY IN EURO DISNEY SHARES ON NOV 11 THE DAY THE THEMEPARK OPERATOR ANNOUNCED A STAGGERING 53 BILLIONFRANC 8974 MILLION LOSS FOR THE YEAR ENDED SEPT 30 THE COMPANY'S SHARES FELL 13 THAT DAY THE NEW PROBE IS A HIGHER LEVEL OF INQUIRY A COB SPOKESWOMAN DECLINED TO DISCUSS DETAILS MARKET WATCHERS SAID THE PLUNGE LAST WEEK WAS LARGELY TRIGGERED BY NEGATIVE BRITISH PRESS REPORTS ON REFINANCING TALKS BETWEEN EURO DISNEY ITS BANKS AND US PARENT WALT DISNEY CO THEY ALSO BLAMED WEDNESDAY'S FREEFALL ON THE START OF THE DECEMBER TRADING ACCOUNT WHICH PROMPTED A DELUGE OF SELLING AS PLAYERS RUSHED TO TAKE UP SHORT POSITIONS EURO DISNEY'S CONVERTIBLE BONDS ALSO TUMBLED 9311290063 931129 HUGHES WINS US FOOTHOLD IN CELLULAR DEAL GM UNIT SET TO ANNOUNCE PACT WITH BELLSOUTH VALUED AT 400 MILLION BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES HUGHES AIRCRAFT CO SECURING A FOOTHOLD IN THE US CELLULARTRANSMISSION MARKET IS EXPECTED TO ANNOUNCE THAT IT WON A CONTRACT VALUED AT NEARLY 400 MILLION TO PROVIDE CELLULAR SWITCHING EQUIPMENT AND TECHNOLOGY FOR BELLSOUTH CORP HUGHES A UNIT OF GENERAL MOTORS CORP HAD TO DISCOUNT HEAVILY TO DISLODGE ENTRENCHED PROVIDERS OF CELLULAR TECHNOLOGY SUCH AS MOTOROLA CORP ACCORDING TO PEOPLE FAMILIAR WITH THE TERMS AND THE CONTRACT GIVES IT ONLY A TINY SLICE OF THE 10 BILLIONAYEAR US MARKET FOR CELLULAR SYSTEMS AND SERVICES WITH THE CONTRACT HOWEVER DEFENSE GIANT HUGHES IS POISED TO MAKE FURTHER INROADS IN THE US CELLULAR MARKET FOR CURRENT AND EMERGING SYSTEMS IT ALSO BRINGS CREDIBILITY FOR A DRIVE BY HUGHES TO BOOST GROWING CELLULARSYSTEM SALES IN DEVELOPING REGIONS SUCH AS CHINA THE FORMER SOVIET UNION AND SOUTHEAST ASIA THE AWARD BY ATLANTABASED BELLSOUTH WHICH IS EXPECTED TO BE ANNOUNCED TODAY WAS CONFIRMED BY OFFICIALS OF BOTH HUGHES AND BELLSOUTH CELLULAR CORP THE BELLSOUTH UNIT SERVING 18 MILLION CELLULAR CUSTOMERS IN 15 STATES A SPOKESMAN FOR MOTOROLA BASED IN SCHAUMBURG ILL COULDN'T BE REACHED TO COMMENT OTHER PROVIDERS OF THE EQUIPMENT AND SERVICES INCLUDE AMERICAN TELEPHONE & TELEGRAPH CO AND SWEDEN'S LM ERICSSON PEOPLE FAMILIAR WITH THE AGREEMENT SAID IT WILL TOTAL CLOSE TO 400 MILLION FOR EQUIPMENT AND SERVICES OVER A FIVEYEAR PERIOD THROUGH 1999 UNDER THE DEAL HUGHES WILL PROVIDE 54 CITIES IN THE SOUTHEASTERN US WITH ITS GMH2000 CELLULAR NETWORK INCLUDING PLACEMENT OF WIRELESS TRANSMISSION EQUIPMENT AT 450 SITES THE HUGHES SYSTEM WHICH USES SWITCHING TECHNOLOGY PROVIDED BY ALCATEL SEL OF GERMANY INCLUDES ADVANCED MOBILESWITCHING CENTERS THAT LINK WIRELESS CALLS TO TRADITIONAL TELEPHONE COMPANY LINES THE EQUIPMENT CAN ACCOMMODATE BOTH ANALOG AND HIGHLY COMPRESSED DIGITAL SIGNALS THAT FLEXIBILITY WAS A CENTRAL FACTOR IN THE AWARD TO HUGHES RICK CLAWSON A VICE PRESIDENT FOR BELLSOUTH CELLULAR SAID THE HUGHES CONTRACT SYSTEMS WILL GIVE MANY CUSTOMERS THE MOST TECHNICALLY ADVANCED NETWORK SYSTEMS WHILE HUGHES HAD TO CUT PRICES TO LAND THE DEAL ITS MANAGERS NONETHELESS WERE CROWING OVER THE WIN HUGHES EFFORTS TO PROVE ITS SYSTEM INCLUDED A 22MONTH TEST IN COOPERATION WITH BELLSOUTH IN MOBILE ALA OTHER MAJOR CITIES TO BE SERVED BY HUGHES EQUIPMENT INCLUDE NEW ORLEANS ORLANDO AND JACKSONVILLE FLA MEMPHIS AND NASHVILLE TENN AND RICHMOND VA WE'VE BEEN DOING QUITE NICELY INTERNATIONALLY SAID JACK SHAW CHAIRMAN OF HUGHES NETWORK SYSTEMS WHICH IS BASED IN BETHESDA MD BUT THE BELLSOUTH CONTRACT LENDS ALL SORT OF NEW CREDENTIALS IT JUST UPS YOUR CREDIBILITY 100 HUGHES ALSO IS ADVANCING IN DEVELOPMENT OF EQUIPMENT FOR THE NEW CELLULAR DIGITAL PACKET DATA NETWORK OR CDPD WHICH TRANSMITS DATA MESSAGES IN ELECTRONIC ENVELOPES CDPD WHICH WAS DEVELOPED BY MCCAW CELLULAR COMMUNICATIONS INC AND A CONSORTIUM THAT INCLUDES INTERNATIONAL BUSINESS MACHINES CORP IS SCHEDULED TO BE COMPLETED NEXT YEAR PAUL CALLAHAN A SENIOR ANALYST WITH FORRESTER RESEARCH INC SAYS CDPD SHOULD PLAY A MAJOR ROLE IN EXPANDING THE NASCENT DATA TRANSMISSION MARKET BUOYED BY INNOVATIONS LIKE CDPD THE WIRELESS DATA MARKET COULD HIT 600 MILLION IN REVENUE BY 1995 ESTIMATES HERSCHEL SHOSTECK A CELLULAR CONSULTANT IN SILVER SPRING MD EVEN SO DATA WILL STILL REPRESENT A RELATIVELY MINUSCULE SEGMENT APPROXIMATELY 1 TO 4 OF WHAT IS EXPECTED TO BE A 155 BILLION CELLULAR MARKET BY 1995 MR SHOSTECK PREDICTS LESLIE CAULEY IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9311290062 931129 PHILIP MORRIS TO ELIMINATE 900 JOBS AT VIRGINIA PLANT NEW YORK PHILIP MORRIS COS PLANS TO ELIMINATE 900 JOBS AT A MAJOR TOBACCO FACTORY IN RICHMOND VA OR 10 OF THE FACILITY'S WORK FORCE IN THE FIRST STEP OF A BROAD CORPORATE DOWNSIZING ANNOUNCED LAST WEEK THE DOMESTIC TOBACCO JOB CUTS ARE THE FIRST DISCLOSED IN PHILIP MORRIS'S PLAN TO REDUCE ITS WORLDWIDE WORK FORCE BY 8 OR 14000 JOBS EACH OF PHILIP MORRIS'S OPERATING UNITS SUCH AS KRAFT GENERAL FOODS WILL ANNOUNCE ITS JOB CUTS AND ADDITIONAL DISMISSAL NOTICES ARE EXPECTED SOON ADDITIONAL DOMESTIC TOBACCO REDUCTIONS ARE POSSIBLE PHILIP MORRIS IS SLASHING EXPENSES TO ADJUST TO THE LOWER PROFIT LEVELS OF THE CIGARETTE INDUSTRY THE RESULT OF THE HUGE POPULARITY OF LOWPROFIT DISCOUNT CIGARETTES IN SEPTEMBER RJR NABISCO HOLDINGS CORP SAID IT PLANNED TO ELIMINATE ABOUT 9 OF ITS DOMESTIC TOBACCO WORK FORCE PHILIP MORRIS SAID THERE IS EXCESS CAPACITY AT ITS RICHMOND FACILITY DESPITE THE GROWING DEMAND FOR THE COMPANY'S CIGARETTES OVERSEAS OF THE CUTS 800 WILL BE HOURLY WORKERS AND 100 WILL BE WHITECOLLAR JOBS THE CUTS WILL BE A COMBINATION OF DISMISSALS AND EARLY RETIREMENT PROGRAMS 9311290061 931129 INTERNATIONAL MERCURYPOISONING VICTIMS WIN IN JAPANESE COURT TOKYO AP A JAPANESE COURT AWARDED 18 MILLION FRIDAY TO 38 VICTIMS OF MERCURY POISONING RULING THAT LOCAL AND NATIONAL GOVERNMENTS SHOULD HAVE ACTED SOONER TO STOP ITS SPREAD THE PLAINTIFFS WERE AMONG AN ESTIMATED 3000 PEOPLE POISONED BY MERCURY DUMPED BY CHISSO CORP A CHEMICAL COMPANY AT MINAMATA BAY FROM 1932 TO 1968 THE WORLD'S MOST NOTORIOUS EPISODE OF MERCURY POISONING FRIDAY'S RULING BY KYOTO DISTRICT COURT JUDGE YOZO KOGITA WAS THE THIRD OF FIVE RULINGS DECIDED AGAINST THE GOVERNMENT EARLIER THIS YEAR ANOTHER LOCAL COURT AWARDED THE EQUIVALENT OF 48 MILLION TO BE SPLIT BY 105 PEOPLE VICTIMS WHO INGESTED THE MERCURY THROUGH THEIR DIET OF FISH SUFFERED SYMPTOMS INCLUDING PARALYSIS LOSS OF SPEECH AND HEARING CONVULSIONS AND SEVERE BIRTH DEFECTS THERE IS NO CURE THE GOVERNMENT HAS REFUSED TO SHARE THE BLAME BUT IT HAS SET ASIDE MONEY FOR MEDICAL CARE AND PENSIONS FOR NEARLY THE 3000 PEOPLE IT RECOGNIZES AS VICTIMS NEARLY HALF HAVE DIED THE DUMPING WAS HALTED DECADES AGO AND CHISSO WAS ORDERED IN 1973 TO CLEAN UP MINAMATA BAY THE GOVERNMENT HELPS THE FINANCIALLY TROUBLED CHISSO STAY AFLOAT TO KEEP IT PAYING COMPENSATION 9311290060 931129 PERELMAN PLANS MERGER NEW MULTIMEDIA COMPANY NEW YORK NEW YORK INVESTOR RONALD PERELMAN PLANS TO MERGE HIS TELEVISIONPRODUCTION COMPANY AND FILM LIBRARY INTO SCI TELEVISION INC A GROUP OF SEVEN TV STATIONS OF WHICH HE OWNS 54 IN A DEAL WORTH ABOUT 215 MILLION THE NEW COMPANY TO BE RENAMED NEW WORLD COMMUNICATIONS GROUP INC IS EXPECTED TO SEEK A PUBLIC STOCK LISTING THAT COULD ALLOW MR PERELMAN TO BUILD A MULTIMEDIA COMPANY MR PERELMAN ACQUIRED CONTROL OF SCI EARLIER THIS YEAR IN A PREPACKAGED BANKRUPTCYLAW PROCEEDING BY MAKING A 100MILLION CASH INFUSION AND ASSUMING DEBT OF ABOUT 600 MILLION THE PLAN CALLS FOR MR PERELMAN TO MERGE NEW WORLD ENTERTAINMENT HIS TV COMPANY WHICH PRODUCES THE WONDER YEARS AND SANTA BARBARA AND FOUR STAR INTERNATIONAL A FILM LIBRARY INTO SCI IN EXCHANGE FOR SCI STOCK IN THE ASSET SWAP MR PERELMAN WILL BE RECEIVING STOCK AT 847 A SHARE A DISCOUNT TO THE 12ASHARE LEVEL WHERE THE STOCK HAS BEEN TRADING IN PRIVATE TRANSACTIONS ACCORDING TO WALL STREET PROFESSIONALS 9311290059 931129 RAIL COMPANIES TRACK BENEFITS OF INTERMODAL SURGING TRUCKTRAIN TRAFFIC BRIGHTENS PROFIT OUTLOOK FOR MAJOR RAILROADS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL SURGING SHIPMENTS OF HIGHWAY TRAILERS ABOARD RAIL CARS ARE BRIGHTENING THE FOURTHQUARTER EARNINGS OUTLOOK FOR SOME OF THE NATION'S LARGEST RAILROADS SHIPMENTS OF FREIGHT BY A COMBINATION OF TRUCK AND RAIL SOCALLED INTERMODAL SHIPPING REACHED RECORD LEVELS FOR TWO CONSECUTIVE WEEKS LAST MONTH AND GROWTH SINCE HAS VASTLY OUTPACED THE REST OF RAIL SHIPMENTS ACCORDING TO THE ASSOCIATION OF AMERICAN RAILROADS INTERMODAL TRAFFIC ROSE 83 IN THE SIXWEEK PERIOD ENDED NOV 13 SIX TIMES HIGHER THAN GAINS FOR OTHER COMMODITIES MOVED SOLELY BY RAIL THE FAST GROWTH IN INTERMODAL IS EVEN LEADING TO SPOT SHORTAGES OF RAILCARS AND TERMINAL CAPACITY AND SOME RAILROADS ARE STEPPING UP THEIR INVESTMENTS IN INTERMODAL TO HANDLE THE GROWTH WE HAVE A FIELD OF DREAMS STRATEGY WHICH IS BUILD IT AND THEY WILL COME SAYS ROBERT KREBS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF SANTA FE PACIFIC CORP BUT SOME OF OUR PEOPLE SAY HURRY UP AND BUILD IT BECAUSE THEY ARE ALREADY HERE' HE SAYS ANALYSTS SAY THE STRENGTH IN INTERMODAL ONCE CONSIDERED A LAGGARD IN FREIGHT SHIPPING HELPS RAILROADS OFFSET DISAPPOINTING BULK SHIPMENTS OF COAL AND GRAIN BECAUSE OF THE WEAKNESS OF COAL IN THE EAST AND WEAK EXPORT GRAIN SHIPMENTS INTERMODAL'S GROWTH IN THE CURRENT PERIOD TAKES ON ADDED IMPORTANCE SAYS MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORP GRAEME ANNE LIDGERWOOD AN ANALYST AT CS FIRST BOSTON PREDICTS THAT MAJOR RAILROADS WILL BOOST THEIR FOURTHQUARTER PROFIT BY 5 TO 10 THANKS IN PART TO BRISK INTERMODAL TRAFFIC RAILROAD EXECUTIVES SAY THERE ARE MANY REASONS FOR THE FAST GROWTH OF INTERMODAL SHIPPING INCLUDING SOME IMPROVEMENT IN THE ECONOMY AND INCREASED USE OF RAIL BY MOTOR CARRIERS TRYING TO CUT COSTS AND OVERCOME A SHORTAGE OF TRUCK DRIVERS THE SURGE IN INTERMODAL SHIPMENTS ALSO REFLECTS IMPROVEMENTS IN RAIL PRODUCTIVITY AND SERVICE MR KREBS SANTA FE PACIFIC'S CHAIRMAN SAYS THE COMPANY IS BENEFITING FROM INCREASED USE OF ITS INTERMODAL TRAINS BY OCEANSHIPPING COMPANIES AND OVERTHEROAD MOTOR CARRIERS SANTA FE PACIFIC'S INTERMODAL SHIPMENTS ARE AHEAD 7 IN THE FOURTH QUARTER AND WOULD HAVE BEEN HIGHER IF NOT FOR THE EFFECTS OF THE MIDWEST FLOODS AND AN INDEPENDENT TRUCKERS STRIKE THAT DISRUPTED SHIPMENTS TO RAIL TERMINALS IN LOS ANGELES SANTA FE PACIFIC IS EXPEDITING INVESTMENTS OF MORE THAN 200 MILLION IN CONSTRUCTION THAT WILL DOUBLE ITS INTERMODAL TERMINAL CAPACITY IN CHICAGO AND LOS ANGELES AND TRIPLE IT IN TEXAS MR KREBS SAYS THAT ANALYSTS' ESTIMATES THAT SANTA FE PACIFIC WILL POST FOURTHQUARTER PROFIT OF ABOUT 57 MILLION OR 30 CENTS A SHARE ARE IN THE BALLPARK IN THE YEAREARLIER QUARTER THE COMPANY HAD EARNINGS OF 439 MILLION OR 24 CENTS A SHARE EXCLUDING GAINS FROM TRANSITLINE SALES THAT BOOSTED NET INCOME TO 1689 MILLION OR 91 CENTS A SHARE AT CONRAIL INC INTERMODAL SHIPMENTS ARE NEARLY 20 HIGHER THAN YEARAGO LEVELS EXCEEDING COMPANY EXPECTATIONS SAYS JAMES HAGEN CONRAIL'S CHAIRMAN AND CHIEF EXECUTIVE GENERAL BUSINESS LEVELS ARE PRETTY GOOD AND WE'RE GAINING A LITTLE MARKET SHARE FROM OVERTHEROAD CARRIERS SAYS MR HAGEN ANALYSTS' ESTIMATES THAT CONRAIL WILL POST FOURTHQUARTER EARNINGS BETWEEN 105 A SHARE AND 110 A SHARE FULLY DILUTED ARE NOT TOO FAR OFF SAYS MR HAGEN THE SURGE IN INTERMODAL SHIPPING SAYS MR HAGEN IS OFFSETTING WEAKNESS IN THE COMPANY'S COALHAULING BUSINESS IN THE YEARAGO FOURTH QUARTER CONRAIL HAD PROFIT OF 92 MILLION OR 99 CENTS A SHARE INTERMODAL REVENUE AT UNION PACIFIC CORP'S RAIL UNIT IS UP 9 IN THE FOURTH QUARTER REFLECTING STRONG DEMAND FROM MOTOR CARRIERS RICHARD DAVIDSON CHAIRMAN OF UNION PACIFIC RAILROAD SAYS THAT MOTOR CARRIERS IN PAST YEARS DIDN'T HAVE CONFIDENCE THAT RAILROADS COULD PROVIDE RELIABLE SERVICE BUT HE SAYS RAILROADS HAVE IMPROVED THEIR SERVICE AND REDUCED COSTS TO THE POINT THAT MOTOR CARRIERS HAVE FOUND US A GOOD PARTNER AT NORFOLK SOUTHERN CORP INTERMODAL REVENUE IS UP ABOUT 5 OR 6 IN THE FOURTH QUARTER BUT BELOW COMPANY EXPECTATIONS TOM FINKBINER NORFOLK SOUTHERN'S VICE PRESIDENT OF INTERMODAL CITED LOWER CONTAINER SHIPMENTS ON THE NORTH ATLANTIC AND A DISRUPTION OF TRANSCONTINENTAL SHIPMENTS RESULTING FROM THE TRUCKER STRIKE ON THE WEST COAST THANKS TO LABOR ACCORDS THAT LENGTHEN CREW DISTRICTS AND CUT CREW SIZE ON FREIGHT TRAINS SANTA FE PACIFIC CURRENTLY REQUIRES 20 EMPLOYEES TO RUN AN INTERMODAL TRAIN FROM CHICAGO TO LOS ANGELES COMPARED WITH 85 EMPLOYEES IN 1985 SAYS MR KREBS SANTA FE PACIFIC'S CHAIRMAN IT USED TO BE THAT INTERMODAL WAS A CURSE FOR SANTA FE PACIFIC SAYS MR KREBS INTERMODAL CURRENTLY ACCOUNTS FOR ABOUT 41 OF SANTA FE'S RAIL REVENUE THE HIGHEST SHARE AMONG MAJOR RAILROADS BUT WE'RE TURNING THAT INTO A BLESSING INTERMODAL IS THE GROWTH OPPORTUNITY FOR THE RAILROAD INDUSTRY TO THE YEAR 2000 AND BEYOND HE SAYS 9311290058 931129 BEYOND WASHINGTON MIDDLE AMERICA IN CLINTON'S FIRST YEAR WARY OF REFORM HEALTHCARE OVERHAUL ELICITS HOPE BUT LOTS OF DOUBT IN QUINCY ILL PEOPLE THE CLINTON PLAN AIMS TO HELP WORRY BECAUSE POLITICIANS' WOULD RUN IT A YEARNING TO FEEL SECURE BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL QUINCY ILL IN ITS POLITICS AS IN ITS TIMEWORN 19THCENTURY ARCHITECTURE THIS CITY'S CALFTOWN NEIGHBORHOOD IS A THROWBACK RUNNING EASTWARD FROM THE MISSISSIPPI RIVER BLUFFS CALFTOWN IS A CLASSIC WORKINGCLASS DISTRICT RESIDENTS NAMED IT FOR THE CATTLE THAT ITS GERMAN IMMIGRANTS PASTURED BEHIND THEIR MODEST CLOSESET HOMES TODAY IT IS A NEIGHBORHOOD OF PEOPLE ECONOMICALLY AND POLITICALLY ON THE EDGE NOT POOR BUT OFTEN CLINGING TO THE LOWER REACHES OF MIDDLECLASS LIFE THE RESIDENTS OF CALFTOWN ARE THE KIND OF PEOPLE WHO STAND TO GAIN THE MOST FROM BILL CLINTON'S HEALTHCARE OVERHAUL INDEED THE KIND OF PEOPLE IN WHOSE NAMES THE PROPOSAL IS BEING ADVANCED YET LISTEN TO SOME OF THEIR VOICES HERE IS LELAND LANG A 38YEAROLD ROOFER HE HAS NO HEALTH INSURANCE AND CAN'T AFFORD DOCTORS EXCEPT FOR THE WORST EMERGENCIES WHEN HE SEVERELY GASHED A FINGER ON A PIECE OF METAL RECENTLY HE JUST WRAPPED TAPE AROUND IT AND LET IT HEAL HE LIKES THE SOUND OF THE CLINTON PLAN BUT HAS A VISCERAL DISTRUST OF WASHINGTON THERE'RE JUST AS MANY CROOKED PEOPLE IN GOVERNMENT AS IN THIEF GANGS HE SAYS JOYCE LOCKE A SELFDESCRIBED PLAIN OLD HOUSEWIFE IS MARRIED TO A RAILROAD WORKER AND HAS HEALTH INSURANCE THROUGH HIM FIFTYONEYEARS OLD AND BATTLING BREAST AND BONE CANCER SHE FIGURES HER OUTOFPOCKET EXPENSES IN FIGHTING IT WERE 10000 IN THE PAST YEAR ALONE MR CLINTON SHE SAYS IS REALLY TRYING TO HELP THE PEOPLE BUT WHEN ASKED IF SHE HAS ANY QUALMS HER REPLY IS EMPHATIC I'VE GOT A LOT OF QUALMS THERE'LL BE TOO MANY HANDS IN THE PIE THE MONEY THEY'RE SUPPOSED TO BE SAVING WILL END UP IN SOMEBODY'S POCKET BACK IN WASHINGTON SOME DEMOCRATIC POLITICAL STRATEGISTS SEE HEALTHCARE REFORM AS A POLITICAL MAGIC BULLET A WAY TO DECISIVELY RECAPTURE THE LOYALTIES OF BLUECOLLAR AND WORKINGPOOR REAGAN DEMOCRATS CALFTOWN IS A REALITY CHECK AND THE REALITY IS THAT PEOPLE IN THIS NEIGHBORHOOD DO LIKE THE CLINTON PLAN IN PRINCIPLE BUT IN EQUAL MEASURE THEY INSTINCTIVELY DISTRUST THE POLITICIANS WHO MUST GIVE IT ITS FINAL FORM AND THE WASHINGTON BUREAUCRACY THAT WOULD ADMINISTER IT THESE PEOPLE ARE PROFOUNDLY ALIENATED FROM THE POLITICAL PROCESS THAT WILL DETERMINE THAT OUTCOME SEEN FROM HERE THE ELITES NOW JOINING THE HEALTHCARE BATTLE IN WASHINGTON ARE LIKE PROFESSIONAL GLADIATORS IN SOME DISTANT ARENA THE GLADIATORS SAY THEY REPRESENT THE PEOPLE BUT THE PEOPLE SUSPECT THAT WHAT THE GLADIATORS MOSTLY REPRESENT IS THEMSELVES THE LINK BETWEEN NATIONAL POLITICS AND THEIR DAILY LIVES HAS BECOME BADLY FRAYED THEIR LIVES THEMSELVES FILLED WITH DAYTODAY STRUGGLES LEAVE THEM LITTLE TIME TO SORT THROUGH COMPLEX POLICY ISSUES HOWEVER IMPORTANT BUT THEIR ALIENATION IS ROOTED IN MORE THAN THIS THEY HAVE LIVED MANY OF THEM THROUGH DECADES OF HIGHMINDED SOCIAL EXPERIMENTS LIKE THE OLD WAR ON POVERTY AND STILL THE OLD PROBLEMS REMAIN SOMETIMES MORE VIRULENT THAN EVER A NEW WORRY IN QUINCY JUST NOW IS THE REALIZATION THAT CRACK AND DRUG DEALERS HAVE INVADED NEIGHBORHOODS EVEN HERE AT THE SAME TIME THEY HAVE LIVED THROUGH A DRUMROLL OF POLITICAL SCANDALS FROM WATERGATE TO THE HOUSE POST OFFICE AFFAIR ALL AMPLIFIED BY THE MEDIA SO PERHAPS IT IS NOT SURPRISING THAT MANY SOUND LIKE A GRAYHAIRED PONYTAILED MAN NAMED BILL INTERVIEWED WHILE CHANGING HIS ANTIFREEZE AT CURBSIDE HERE BILL PERHAPS DISTRUSTING REPORTERS AS YET ANOTHER ALIEN ELITE DECLINES TO GIVE HIS LAST NAME BUT OFFERS THIS SUMMATION I BELIEVE IN GOVERNMENT BUT I DON'T TRUST IT THE BEST THING MR CLINTON HAS GOING FOR HIS PLAN IS THE FEELING HERE THAT SOME GOVERNMENT PROGRAMS INCLUDING SOCIAL SECURITY AND MEDICARE HAVE TRULY WORKED TOUCHING ORDINARY LIVES IN POSITIVE WAYS THERE IS A HOPE AMONG MANY THAT THE COMPREHENSIVE HEALTH COVERAGE MR CLINTON ENVISIONS COULD BE THAT KIND OF PROGRAM TOO BUT WEIGHED AGAINST THAT HOPE AT LEAST FOR SOME IS A FEAR THAT THE WHOLE THING COULD BACKFIRE RUTH HAGAR A 72YEAROLD WHO CONTINUES TO WORK IN HER TAILOR SHOP ON STATE STREET FEARS THAT VERY MUCH WITHIN THE PAST YEAR SHE HAS HAD 39000 QUADRUPLEBYPASS HEART SURGERY WITH MEDICARE PICKING UP MOST OF THE COST I'M AFRAID MR CLINTON IS GOING TO MESS UP THE MEDICARE DEAL MESS UP SOCIAL SECURITY AND HE'S GOING TO BE IN WORSE SHAPE THAN HE STARTED IN SHE SAYS IF I WERE TO LOSE MY MEDICARE I'D BE SUNK SO THE OVERRIDING QUESTION HERE ISN'T IS THIS GOOD RATHER IT'S WILL THIS WORK THE FIRST QUESTION IS THAT OF A SOCIAL REFORMER BUT THE SECOND IS THAT OF A WORKER WHO MUST PUT THINGS TOGETHER AND QUINCY FROM ITS EARLIEST DAYS HAS BEEN A WORKERS' TOWN PERCHED ATOP ITS MISSISSIPPI RIVER BLUFFS QUINCY POPULATION ABOUT 39700 IS NAMED FOR JOHN QUINCY ADAMS THE PRESIDENT AT THE TIME OF ITS FOUNDING IN 1858 ABRAHAM LINCOLN AND STEPHEN A DOUGLAS MADE HISTORY HERE DEBATING SLAVERY IN A LEAFY DOWNTOWN PARK BUT IN QUINCY MAKING HISTORY HAS ALWAYS TAKEN SECOND PLACE TO MAKING THINGS AT FIRST PLOWS CARRIAGES STEAM ENGINES AND BEER TODAY ELECTRONIC EQUIPMENT COMPRESSORS LIVESTOCK FEED AND AGRICULTURAL IMPLEMENT PARTS ALTHOUGH STILL MANUFACTURINGBASED THE ECONOMY IS SLOWLY SHIFTING TOWARD SERVICE COMPANIES THAT INCLUDES ONE A COUPLE OF MILES FROM CALFTOWN WITH A DIRECT STAKE IN THE CLINTON HEALTH PLAN A REGIONAL CLAIMSPROCESSING CENTER FOR BLUE CROSS/BLUE SHIELD OF ILLINOIS WHAT THE CENTER NOW DOES DIRECTLY IS WHAT THE GOVERNMENT WOULD BECOME INVOLVED IN INDIRECTLY RELYING ON HEALTHCARE NETWORKS AND PRIVATE INSURANCE COMPANIES SHOULD THE CLINTON PLAN PASS EVERY MORNING A DELIVERY SERVICE UNLOADS BOX AFTER BOX OF MEDICAL CLAIMS WHICH ARE FARMED OUT TO MORE THAN 200 WORKERS WEARING TELEPHONE HEADSETS AND CLICKING AWAY ON COMPUTER KEYS THEY WORK FAST A ROUTINE CLAIM CAN ZIP THROUGH IN FIVE MINUTES BECAUSE THEY HAVE TO WORK FAST NEXT YEAR THIS SINGLE OFFICE EXPECTS TO PROCESS MORE THAN 69 MILLION CLAIMS AS MIGHT BE EXPECTED WORKERS AT THE CENTER STRONGLY OPPOSE THE CLINTON PLAN WHICH THEY FEAR COULD COST THEM THEIR JOBS HOW CAN I CLEAN THIS UP BEGINS SUPERVISOR KATHY LUMLEY MENTALLY CENSORING HER FIRST REACTION FINALLY SHE SAYS THE GOVERNMENT HAS NO IDEA WHAT IT'S GETTING INTO THE CLINTONITES SHE CONTINUES SEEM TO HAVE THIS ATTITUDE I AM GOD I WILL MAKE PEOPLE PLAY TOGETHER' WELL YOU CAN'T MAKE PEOPLE PLAY TOGETHER BUT ON THE STREETS OF QUINCY AMONG THE PEOPLE WHO LIVE HERE WORK HERE OR PATRONIZE THE SMALL BUSINESSES HERE THE REACTION IS FAR LESS HEATED THE PROPOSAL ISN'T A HOTBUTTON ISSUE LIKE ABORTION RATHER SUPPORTERS AND OPPONENTS ALIKE SEEM TO SEE IT AS SOMETHING TOO BIG AND TOO SERIOUS TO BE DECIDED BY MERE POLITICS WE'RE ALL AMERICANS WE NEED THIS FOR THE GOOD OF EVERYONE SAYS JOYCE KUSE A COOWNER OF A CUT ABOVE BEAUTY SALON IT WOULD BOTHER ME IF THIS BECAME JUST A DEMOCRATSAGAINSTREPUBLICANS THING PEOPLE HERE DO ASSUME CONGRESS WILL SCALE THE HEALTH PROPOSAL BACK AND SEEM REASSURED BY THE PROSPECT OF TOUGHMINDED SCRUTINY ON CAPITOL HILL THIS IS SOMETHING THE COUNTRY NEEDS REASONS JAMES FLORIE A 50YEAROLD ROOFER WHO IS LELAND LANG'S BOSS BUT IT'S LIKE LOOKING AT A NEW CAR LOOKING DOESN'T NECESSARILY MEAN YOU'RE GOING TO GET THAT CAR AT THE SAME TIME THEY WILL BE DISMAYED IF THE CONGRESSIONAL DEBATE CURDLES INTO RAW PARTISANSHIP OR SPECIALINTEREST POWER PLAYS THEY MAY NOT LOVE POLITICIANS BUT THEY AREN'T WILD ABOUT THE CURRENT HEALTHINSURANCE SYSTEM EITHER HEALTH CARE IS AN ISSUE THAT TOUCHES PEOPLE PERSONALLY MOST EVERYONE EITHER HAS HAD A SERIOUS ILLNESS KNOWS A PERSON WHO HAS OR LIVES IN FEAR OF THE FINANCIAL DEVASTATION THAT ONE MIGHT WREAK I'LL TELL YOU I'M FOR ANYTHING LIKE THIS DECLARES 72YEAROLD NEOLA BROWN SHE LIVES ON 485 A MONTH AND WORRIES THAT DESPITE MEDICARE SHE IS ONE PROLONGED ILLNESS AWAY FROM FINANCIAL DISASTER IF THE WORST COMES SHE SAYS I'VE GOT THIS HOUSE AND THEY CAN JUST TAKE IT BUT WHAT PEOPLE KEEP COMING BACK TO AGAIN AND AGAIN IS THE COST OF COMPASSION WHERE DO YOU DRAW THE LINE HOW DO YOU DRAW THE LINE SOME PEOPLE DO NEED THIS SAYS DAWN EARLEY AN 18YEAROLD STUDENT AT THE QUINCY BEAUTY ACADEMY BUT OTHERS WILL TAKE ADVANTAGE OF IT BILL HANLEY 46 WOULD LIMIT COVERAGE TO THE POOR AND DISABLED HE IS A MAN WHO KEEPS AN OPEN BIBLE IN HIS ONEMAN AUTOBODY SHOP HIS BUSINESS SIGN OUTSIDE QUOTES FROM JOHN 316 AND HELPING THE HELPLESS STRIKES HIM AS THE CHRISTIAN THING TO DO BUT YOU CANNOT SUPPORT EVERYBODY HE EMPHASIZES WHY SHOULD WE TAKE CARE OF PROSTITUTES WHO ABUSE THEIR BODIES AND GET AIDS HIS BOTTOMLINE INSTINCT ANYTHING THE GOVERNMENT GETS INTO IT SEEMS TO GET OUT OF CONTROL ALTHOUGH INSTINCTIVELY CAUTIOUS PEOPLE HEREABOUTS OFTEN DISPLAY AN ALTRUISM THAT MIGHT SURPRISE THE PARTISAN WARRIORS OF CONGRESS MS KUSE THE SMALLBUSINESS WOMAN THINKS THE CLINTON PLAN WOULD PROBABLY COST HER BEAUTY SALON MORE THE SALON ALREADY PICKS UP PART OF THE INSURANCE PREMIUM FOR EMPLOYEES WHO NEED INSURANCE JUST THE SAME SHE IS READY TO PAY THAT PRICE IT WOULD MAKE MY EMPLOYEES FEEL MORE SECURE SHE SAYS ADDING I KEEP OVERHEARING CUSTOMERS WHO JUST DON'T FEEL WELL BUT DON'T GO TO THE DOCTOR BECAUSE THEY DON'T HAVE INSURANCE I THINK THAT'S PRETTY SAD AT BOTTOM SAYS FORMER ADAMS COUNTY DEMOCRATIC CHAIRMAN MEL KOCH PEOPLE HERE AREN'T IDEOLOGUES THEY ARE PRAGMATISTS AND THEIR INSTINCTS ARE ROOTED IN AN EARLIER ERA IN AMERICAN POLITICS DEMOCRATIC HEADQUARTERS IS CALLED THE TRUMAN SOCIAL CLUB AND INSIDE MR CLINTON'S PICTURE HANGS ON A SIDE WALL WHILE HARRY TRUMAN'S GETS CENTER STAGE MR KOCH SEARCHES FOR AN ADJECTIVE TO DESCRIBE AREA VOTERS AND FINDS ONE HARDHEADED SO PERHAPS IT IS NOT SURPRISING THAT MRS HUMMELSHEIM PROMPTLY PULLS OUT A POCKET CALCULATOR WHEN ASKED ABOUT THE CLINTON PLAN MRS HUMMELSHEIM WHO NOW HELPS SELL COOKING UTENSILS AND GOURMET COFFEE AT THE QUINCY STEAMBOAT CO DOES SOME QUICK FIGURING OUR FAMILY PROBABLY PAYS 800 A YEAR IN INSURANCE PREMIUMS RIGHT NOW I CAN'T SEE THAT THE CLINTON PLAN WOULD BE MUCH OF A HARDSHIP PEOPLE WORRY THAT THE PLAN WOULD SWITCH THEM INTO HMOS BUT COMPANIES ARE SWITCHING THEIR EMPLOYEES INTO HMOS ANYWAY THIS IS ONE OF THOSE THINGS YOU HOPE WILL TURN OUT ALL RIGHT 9311290057 931129 FUTURE LOOKS BRIGHT FOR BIG SPANISH BANK ARGENTARIA READY FOR BUSINESS AFTER STOCK OFFERINGS BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID AFTER RAISING 300 BILLION PESETAS 218 BILLION THROUGH TWO OVERSUBSCRIBED STOCK OFFERING THIS YEAR ARGENTARIA CORP BANCARIA DE ESPANA IS READY TO SETTLE DOWN TO BUSINESS ALL THE EFFORT AND ENERGY WE'VE DEDICATED UNTIL NOW TO OUR SHARE FLOTATION WILL BE DEDICATED TO COMPETING WITH THE REST OF THE SECTOR SAID ARGENTARIA CHAIRMAN FRANCISCO LUZON WHO IS EUPHORIC AFTER THIS MONTH'S SUCCESSFUL SHARE OFFERING FROM NOW ON WE'LL DEDICATE ALL OUR ENERGIES TO COMMERCIAL ACTIVITY AN IDLE THREAT MOST ANALYSTS DON'T THINK SO INSTEAD THEY'RE BETTING THAT THE STATECONTROLLED BANKING GROUP WILL POST THE BIGGEST JUMP IN PROFIT OF ANY SPANISH BANK THIS YEAR AND POSSIBLY NEXT YEAR AS WELL SIMILARLY ANALYSTS SAY ITS STOCK IS LIKELY TO OUTPERFORM BOTH ITS COMPETITORS AND THE MADRID GENERAL INDEX ARGENTARIA WILL BE THE STAR IN 1994 AND 1995 SAYS IGNACIO CORNEJO AN ANALYST AT BETA CAPITAL SVB SA A MADRID BROKERAGE FIRM DEPENDING ON MARKET CONDITIONS HE SAYS THE GROUP'S SHARE PRICE COULD RISE TO 7000 PESETAS NEXT YEAR FROM 6100 ON FRIDAY AND 3800 PESETAS AFTER ITS FIRST OFFERING IN MAY BUT WHAT HAPPENS AFTER 1995 WHEN MARGINS GET REALLY NARROW MAY BE A WHOLE DIFFERENT STORY ADDS JAVIER REQUENA BANKING ANALYST AT MADRID BROKERAGE FIRM BENITO & MONJARDIN SVB IF THERE'S ONE MOMENT IN WHICH ARGENTARIA HAS TO REALLY DO THINGS WELL IT'S NOW BUT HE TOO AGREES THAT IF ARGENTARIA MEETS EXPECTATIONS ON THE BUSINESS FRONT AND CURRENT STOCK MARKET TRENDS PERSIST THE GROUP'S SHARE PRICE COULD SURGE AS HIGH AS 7000 PESETAS NEXT YEAR ALTHOUGH NOT ALL ANALYSTS ARE QUITE AS UPBEAT ALMOST ALL AGREE THAT ARGENTARIA OFFERS INVESTORS ONE OF THE BEST BUYS IN THE SPANISH MARKET FOR ONE THING THIS YEAR'S HEAVILY OVERSUBSCRIBED STOCK ISSUES WHICH CUT THE GOVERNMENT'S STAKE TO 51 FROM 100 GENERATED A LARGE POOL OF UNSATISFIED DEMAND FOR THE GROUP'S SHARES MOREOVER AFTER STARTING FROM A LOW BASE IN MAY ARGENTARIA'S SHARE PRICE ROSE QUICKLY THROUGHOUT THE YEAR AS IT CAUGHT UP WITH THE BANKING SECTOR AVERAGE MR REQUENA SAYS NOW IT COULD RISE FASTER IN LINE WITH PROFIT PARTICULARLY IF MR LUZON AND HIS TEAM CAPITALIZE ON THE BUSINESS OPPORTUNITIES THAT HAVE OPENED UP SINCE THE GROUP WAS CREATED IN 1991 WITH TOTAL ASSETS OF 103 TRILLION PESETAS ARGENTARIA COMPRISES A STRING OF STATEOWNED FINANCIAL INSTITITUIONS EACH OF WHICH HAS PRESERVED ITS SPECIALIZATION IN THE SPANISH MARKET THIS ARRANGEMENT HAS GIVEN RISE TO A BURST OF CROSSSELLING AND OTHER JOINT ACTIVITIES AMONG ITS UNITS WE'VE COMPLETED ONE STAGE OF OUR DEVELOPMENT MR LUZON EXPLAINS WE'VE CONSOLIDATED OUR MODEL A MIXED COMPANY WITH STATE CONTROL THAT OPERATES WITHIN THE SAME COORDINATES AS A PRIVATE BANK INVESTORS HAVE SEEN THAT THIS MODEL WORKS IN FACT ANALYSTS SAY THERE ARE ALREADY INDICATIONS THAT THE CROSSSELLING STRATEGY AMONG THE UNITS IS HAVING AN EFFECT A 19 RISE IN COMMISSIONS FOR EXAMPLE HELPED BOLSTER OPERATING PROFIT 30 IN THE FIRST NINE MONTHS OF THE YEAR WHILE DEPOSITS ROSE MORE THAN 6 MR LUZON SAYS ARGENTARIA WILL TRY TO PENETRATE NEW MARKETS PARTICULARLY THOSE DEALING WITH ASSET MANAGEMENT AND LONGTERM LENDING AREAS THAT WILL BENEFIT FROM LOWER INTEREST RATES ALTHOUGH ARGENTARIA HAS THE SMALLEST BRANCH NETWORK OF ANY BIG SPANISH BANK MR LUZON SAYS BUILDING UP THE GROUP'S DEPOSIT BASE WON'T BE A KEY PRIORITY INSTEAD THE GROUP WILL CONTINUE TO TAP CAPITAL MARKETS FOR LONGTERM FINANCING THAT IS LIKELY TO BECOME PROGRESSIVELY CHEAPER AS INTEREST RATES DROP OUR COMMERICAL STRATEGY ALTHOUGH NOT ABSENT WASN'T FUNDAMENTAL SAYS MR LUZON REFERRING TO THE PERIOD OF PREPARATION FOR THIS MONTH'S SHARE ISSUE NOW WE'LL CONCENTRATE ON SUPPORTING NEW MARKETS AND BUILDING UP OLD ONES SAYS JOSE SEVILLA CHIEF ANALYST AT FG INVERSIONES BURSATILES SVB WITH THE SHARE ISSUES ARGENTARIA'S BRANCH NETWORK WAS VERY BUSY TRYING TO CHANNEL ITS CUSTOMERS' SAVINGS INTO THE BANK'S SHARES NOW IT CAN BE MORE COMPETITIVE IN OTHER AREAS DESPITE ITS STERLING BEGINNINGS ARGENTARIA STILL FACES CHALLENGES ALTHOUGH ANALYSTS BELIEVE THE GOVERNMENT WILL NO LONGER USE THE BANK FOR POLITICAL MEANS DOUBTS REMAIN ABOUT THE STATE'S INTENTIONS THE QUESTION HERE IS WHAT'S THE GOVERNMENT GOING TO DO SAYS A WORRIED ANALYST IN LONDON THE HONEYMOON IS OVER NOW BUSINESS MUST GROW MR LUZON ISN'T FAZED BY THE GOVERNMENT'S CONTROLLING INTEREST IN ARGENTARIA I'VE ASKED FOR AT LEAST HALF A YEAR'S TIME BEFORE ANOTHER SHARE ISSUE TAKES PLACE IN ORDER TO SEE HOW THE MARKET AND OUR SHAREHOLDERS' BASE DEVELOP HE SAYS HE ALSO BELIEVES THAT ARGENTARIA HAS A ROLE TO PLAY AS THE WATCHDOG OF SPAIN'S FINANCIAL SYSTEM IN THE FUTURE THERE'LL BE A PROCESS OF CONCENTRATION IN THE BANKING SECTOR BOTH IN SPAIN AND EUROPE THE STATE CAN USE THIS GROUP TO INJECT COMPETITION IN THE SYSTEM AND COUNTER CARTELS MR LUZON NOTES THAT THE GOVERNMENT HAS A STAKE IN MANY OF THE BLUECHIP STOCKS ON THE MADRID EXCHANGE SUCH AS OIL COMPANY REPSOL SA TELECOMMUNICATIONS GROUP TELEFONICA DE ESPANA SA AND ELECTRICAL UTILITY EMPRESA NACIONAL DE ELECTRICIDAD SA IN THE PAST ALL THREE COMPANIES HAVE PLAYED AN IMPORTANT ROLE IN REORGANIZING THEIR SECTORS ANOTHER TASK FACING ARGENTARIA IS REPLACING WITH NEW BUSINESS A LARGE PORTION OF THE 16 TRILLION PESETAS WORTH OF GOVERNMENT LOANS STILL ON ITS BALANCE SHEET WHEN THESE LOANS FALL DUE OVER THE NEXT 10 YEARS ANALYSTS SAY THAT MEANS THE GROUP WILL NEED TO BE PARTICULARLY AGGRESSIVE IN CAPTURING NEW CUSTOMERS IF IT WANTS TO MAINTAIN THE SIZE OF ITS BALANCE SHEET BECAUSE OF THE STRUCTURE OF ITS LIABILITIES ARGENTARIA IS GENERALLY BELIEVED TO BE BETTER POSITIONED THAN ITS COMPETITORS TO WEATHER THE EXPECTED DROP IN INTEREST RATES ON ASSETS AND CHEAPER LIABILITIES SHOULD GIVE THE GROUP THE EDGE IT NEEDS TO TAKE PART IN A FIGHT OVER LOANS WHEN THE ECONOMY BEGINS TO RECOVER PUSHING UP THE DEMAND FOR CREDIT ANALYSTS SAY 9311290056 931129 INTERNATIONAL BRITAIN CHINA ESCALATE QUARREL ON HONG KONG BY JESSE WONG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THIS COLONY AND ITS FINANCIAL MARKETS SEEM HEADED FOR AN UNSETTLING PERIOD AS BRITAIN AND CHINA BREAKING A LONG STALEMATE BEGIN A STEPBYSTEP ESCALATION OF THEIR YEAROLD CONFLICT OVER REFORMING THE COLONIAL LEGISLATURE THE REFORMS WHICH BRITAIN WANTS TO IMPLEMENT BEFORE RETURNING HONG KONG TO CHINESE RULE IN 1997 WOULD OPEN LEGISLATIVE ELECTIONS WIDER TO PUBLIC PARTICIPATION THEY ARE REGARDED BY CHINA AS A PLOY TO UNDERMINE ITS CONTROL OVER THE TERRITORY ALTHOUGH NO PROGRESS HAS BEEN ACKNOWLEDGED PUBLICLY THE TWO SIDES HAVE BEEN EDGING TOWARD COMPROMISE AFTER SEVEN MONTHS OF TALKS HOWEVER AFTER ARGUING FOR TWO DAYS OVER WHICH ISSUES TO TERM COMPLEX AND WHICH TO TERM SIMPLE THE TWO SIDES RECESSED SATURDAY WITHOUT FIXING A DATE FOR MORE TALKS BRITAIN IS ASKING THAT FURTHER TALKS BE FOCUSED ONLY ON WHAT IT TERMS COMPLEX ITEMS THE IMPLICATION IS THAT IT INTENDS TO ACT UNILATERALLY ON THE REST SUCH AS LOWERING THE VOTING AGE WHILE BEING CRITICAL OF BRITAIN CHINA DIDN'T RULE OUT MORE TALKS SAYING THAT IT WOULD REPLY IN TIME TO THE BRITISH REQUEST IN THE MOST EXTENSIVE REACTION A BEIJINGCONTROLLED NEWSPAPER PUBLISHED IN HONG KONG GAVE A MIXED PROGNOSIS FOR THE FUTURE OF THE NEGOTIATIONS QUOTING A BEIJING SOURCE WEN WEI PAO SAID IN ITS EDITIONS SUNDAY THAT THE CHINESE SIDE STILL WANTS TO CONTINUE TALKING THE ARTICLE WARNED AT THE SAME TIME CHINA WOULDN'T ACCEPT UNILATERAL ACTION BY BRITAIN CHRIS PATTEN HONG KONG'S GOVERNOR AND THE MAIN ARCHITECT OF THE PROPOSED REFORMS ALSO STEERED AWAY FROM PROVOCATIVE PUBLIC COMMENT QUESTIONED SUNDAY BY JOURNALISTS HE DESCRIBED THE LATEST NEGOTIATING SESSION AS ANOTHER SAD AND DISAPPOINTING ROUND THE LATEST DEVELOPMENTS HAVEN'T COME AS A BIG SURPRISE IN THE PAST FEW WEEKS CHINA AND BRITAIN HAVE EACH GRUMBLED ABOUT DAWDLING ON THE OTHER'S PART THE MEASURED PACE AT WHICH THE DISPUTE HAS BEEN ESCALATING LEAVES SOME PEOPLE CONVINCED THAT THE TWO GOVERNMENTS ARE STILL JOSTLING FOR NEGOTIATING ADVANTAGE OTHERS AREN'T AS SANGUINE THE POSTURING IS OVER THIS IS THE REAL THING SAYS BARRY YATES A DIRECTOR OF THE BROKERAGE FIRM VICKERS BALLAS HONG KONG LTD THAT COULD MEAN A NASTY JOLT FOR THE STOCK MARKET WHICH HAS BEEN STUCK IN A NARROW RANGE IN RECENT WEEKS AFTER RISING SHARPLY IN OCTOBER AND EARLY NOVEMBER MR YATES SAYS THAT THE MARKET'S HANG SENG INDEX WHICH CLOSED AT 927442 ON FRIDAY COULD DIVE BELOW 9000 WHEN TRADING RESUMES MONDAY FURTHER POLITICAL SHOCKS MIGHT DRAG IT CLOSER TO THE 8500 LEVEL THE THREE SOCALLED SIMPLE ISSUES THAT PRECIPITATED THE CURRENT SINOBRITISH CLASH ARE RELATIVELY UNCONTENTIOUS AND YET THE TWO GOVERNMENTS MANAGED TO REACH TENTATIVE AGREEMENT ON SATURDAY ON ONLY ONE POINT WHICH IS TO LOWER THE COLONY'S VOTING AGE FROM 21 TO 18 A SECOND ISSUE INVOLVED DISTRICT BOARDS A FORM OF NEIGHBORHOOD COMMITTEES THAT ARE FILLED CURRENTLY BY BOTH ELECTIONS AND OFFICIAL APPOINTMENTS BRITAIN HAS PROPOSED TO SCRAP ALL THE APPOINTED SEATS A THIRD ISSUE IS A BRITISH PROPOSAL THAT ALL ELECTIONS IN THE COLONY BE BASED ON THE PRINCIPLE OF ONE REPRESENTATIVE FOR EACH CONSTITUENCY THAT WOULD SIMPLIFY THE CURRENT SYSTEM WHICH IN THE CASE OF THE LEGISLATIVE COUNCIL REQUIRES TWO CANDIDATES TO RUN JOINTLY IN EACH DISTRICT CHINA HAS HINTED ON VARIOUS OCCASIONS THAT IT DOESN'T SEE SUBSTANTIVE OBJECTIONS TO ANY OF THESE ISSUES BUT IT MAINTAINS THEY AREN'T AS SIMPLE AS BRITAIN ASSERTS CHINESE NEGOTIATORS HAVE ASKED TO ATTACH CONDITIONS TO THE DISTRICT BOARD ITEM AND TO POSTPONE DISCUSSION ON CERTAIN SPECIFICS OF THE VOTING SYSTEM PROPOSAL TWO COMPLEX ISSUES INVOLVE THE SHAPING OF CONSTITUENCIES IN THE LEGISLATIVE COUNCIL THE FINAL CONTENTIOUS POINT IS THE SOCALLED THROUGH TRAIN IT IS SHORTHAND FOR THE IDEA THAT PEOPLE ELECTED BEFORE 1997 SHOULD BE ALLOWED TO CONTINUE SERVING AFTER THE CHANGE IN SOVEREIGNTY 9311290054 931129 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 3/8 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 59 DAYS 332 60 TO 89 DAYS 330 90 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 344 60 DAYS 342 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 272 TWO MONTHS 274 THREE MONTHS 283 SIX MONTHS 302 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 337 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 325 60 DAYS 325 90 DAYS 325 120 DAYS 327 150 DAYS 327 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 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 624 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 22 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 314 13 WEEKS 330 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 711 60 DAYS 717 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 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 9311290053 931129 JAPAN AGREES TO LIFT BAN ON RICE IMPORTS US PACT IS BOON TO GATT PRESSURES EC TO SWEETEN ITS OFFER ON AGRICULTURE BY STAFF REPORTERS BOB DAVIS IN WASHINGTON AND DAVID P HAMILTON IN TOKYO THE US AND JAPAN HAVE AGREED ON A PLAN TO OPEN JAPAN'S MARKETS TO RICE IMPORTS GIVING AN IMPORTANT BOOST TO WORLD TRADE TALKS IN GENEVA JAPAN IS EXPECTED TO FORMALLY AGREE AROUND DEC 10 TO LIFT ITS LONGSTANDING BAN ON RICE IMPORTS THAT BAN HAS BECOME A SYMBOL OF UNFAIR JAPANESE TRADE PRACTICES GIVEN JAPAN'S HUGE TRADE SURPLUSES WITH THE REST OF THE WORLD US OFFICIALS SAID THE AGREEMENT WOULD ADD TO PRESSURE ON THE EUROPEAN COMMUNITY TO SWEETEN ITS OFFER ON AGRICULTURAL PRODUCTS IN THE TRADE TALKS INDEED SOME TRADE NEGOTIATORS WORRY THAT IN ORDER TO LIMIT THAT PRESSURE THE EC MAY TRY TO BLOCK THE USJAPANESE RICE DEAL THE AGREEMENT COMES AT A TIME WHEN THE US AND EC ARE TRYING TO WRAP UP A PRELIMINARY AGREEMENT ON TRADE ISSUES PERHAPS IN TIME FOR AN EC MEETING ON THURSDAY THE TWO SIDES ENVISION A SERIES OF TARIFF CUTS ON INDUSTRIAL PRODUCTS BUT MAY NOT BE ABLE TO WORK OUT THEIR DISAGREEMENTS ON AGRICULTURAL ISSUES AND MOVIES BY THAT TIME WORLD TRADE TALKS HELD UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA ARE UNDER A CONGRESSIONAL DEADLINE TO FINISH NEGOTIATIONS BY DEC 15 SO THE US AND EC THE MAJOR DISPUTANTS IN THE TRADE ROUND WANT TO REACH AN AGREEMENT QUICKLY SO THEY CAN SIGN UP OTHERS IN THE 110NATION GATT TO GO ALONG WITH THE TARIFF CUTS FOR JAPAN THE AGREEMENT ON RICE REPRESENTS A POLITICAL GAMBLE BECAUSE IT IS OPPOSED BY POWERFUL RURAL INTERESTS AND BECAUSE RICE HAS BEEN A SYMBOL OF THE ISLAND NATION'S SELFSUFFIENCY THE AGREEMENT COULD COMPLICATE AND PERHAPS EVEN DERAIL JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA'S EFFORTS TO GET HIS POLITICAL REFORM PACKAGE THROUGH THE UPPER HOUSE OF THE JAPANESE PARLIAMENT LATER IN DECEMBER THE OPPOSITION LIBERAL DEMOCRATIC PARTY HAS OBJECTED TO ANY OPENING OF THE RICE MARKET AS HAS THE SOCIALIST PARTY WHICH HAS THE LARGEST BLOC IN MR HOSOKAWA'S SEVENPARTY RULING COALITION LAST MONTH THE US HAD OBJECTED TO ESSENTIALLY THE SAME JAPANESE PROPOSAL AS INADEQUATE BUT THE US WHICH IS STRONGLY BACKING MR HOSOKAWA'S REFORM DRIVE IS AWARE OF HIS POLITICAL PROBLEMS TO HELP HIM THE US DROPPED OBJECTIONS TO PARTS OF THE RICE DEAL THAT DON'T CONFORM TO A BROAD GATT DRAFT AGREEMENT UNDER THE DEAL US OFFICIALS SAID JAPAN WOULD ALLOW RICE IMPORTS EQUAL TO ABOUT 4 OF DOMESTIC CONSUMPTION IN 1995 RISING TO ABOUT 8 BY THE TURN OF THE CENTURY THAT IS A LARGER COMMITMENT THAN CALLED FOR IN THE GATT DRAFT DEAL BUT JAPAN WOULDN'T HAVE TO FORMALLY DROP THE BAN ON THE REMAINDER OF ITS MARKET AND SUBSTITUTE TARIFFS IMMEDIATELY WHICH THE GATT PROPOSAL ALSO CALLED FOR INSTEAD IT WOULD BEGIN TO MOVE TO TARIFFS SIX YEARS AFTER THE AGREEMENT TAKES EFFECT THAT COULD ALLOW THE JAPANESE GOVERNMENT TO ARGUE THAT IT PROTECTED THE VAST MAJORITY OF ITS RICE MARKET DESPITE US PRESSURE THE US HOWEVER HOPES TO WRING OTHER CONCESSIONS FROM JAPAN DURING THE FINAL GATT NEGOTIATIONS JAPAN FOR INSTANCE HAS AGREED TO CUT ITS TARIFFS ON WOOD PRODUCTS BY ABOUT 50 BUT THE US IS PUSHING FOR ELIMINATION OF THESE TARIFFS IF THE US AND EC AGREE ON STEEP TARIFF CUTS ON WOOD PRODUCTS THAT WOULD ADD TO THE PRESSURE ON JAPAN US NEGOTIATORS ALSO WANT JAPAN TO AGREE TO OPEN ITS MARKET FURTHER TO US BANKS AND OTHER FINANCIALSERVICES COMPANIES BUT ARE DUBIOUS THAT CAN BE ACCOMPLISHED INSTEAD THE US HAS THREATENED IN THE GATT ROUND TO TREAT FOREIGN FINANCIALSERVICES COMPANIES DIFFERENTLY IN THE US DEPENDING ON HOW OPEN FOREIGN MARKETS ARE TO US COMPANIES UNDER THAT PROPOSAL JAPANESE FINANCIAL COMPANIES COULD FACE PROBLEMS GETTING LICENSES AND REGULATORY APPROVAL IN THE FUTURE UNLESS JAPAN AGREED TO OPEN ITS MARKET FURTHER THE US IS ALSO SEEKING OTHER CHANGES IN A GATT DEAL DURING THE NEXT TWO WEEKS IT WANTS TO LIMIT THE ABILITY OF FOREIGN COUNTRIES TO USE GATT ARBITRATION PANELS TO OVERTURN US DUMPING OR UNFAIRSUBSIDY CASES AND IT MAY TRY TO DROP PROVISIONS ORIGINALLY INSISTED ON BY THE US NEGOTIATORS IN THE BUSH ADMINISTRATIONTHAT LIMIT GOVERNMENT SUBSIDIES FOR RESEARCHANDDEVELOPMENT PROJECTS THE CLINTON ADMINISTRATION HAS EMBRACED TECHNOLOGY PROJECTS FUNDED JOINTLY BY GOVERNMENT AND INDUSTRY WHICH IN THE BUSH YEARS WERE DERIDED AS INDUSTRIAL POLICY 9311290052 931129 FURTHER OILPRICE SLIDE SEEN FOLLOWING OPEC'S RETENTION OF OUTPUT CEILING BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL VIENNA A FURTHER SLIDE IN CRUDEOIL PRICES IS PREDICTED IN THE WAKE OF OPEC'S DECISION TO LEAVE ITS PRODUCTION CEILING UNTOUCHED PETER GIGNOUX SENIOR VICE PRESIDENT OF THE LONDON PETROLEUM DESK FOR SMITH BARNEY SHEARSON EXPECTS THAT THE SEARCH FOR A BOTTOM FOR PRICES WILL CONTINUE INTO SPRING AND POSSIBLY SUMMER AND IF HIS PRICING OUTLOOK PROVES CORRECT IT COULD MEAN PRICES AS LOW AS 13 FOR WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE ALTHOUGH MR GIGNOUX IS CONSIDERED TO BE AMONG THE MORE BEARISH TRADERS ANALYSTS PREPARING POSTMORTEMS ON LAST WEEK'S ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES MEETING HERE WIDELY HOLD THE VIEW THAT WTI EASILY COULD SINK TO 15 A BARREL AND ANY BREAK BELOW THAT PSYCHOLOGICALLY IMPORTANT LEVEL THEY SAID WOULD BE TANTAMOUNT TO A PRICE CRASH SIMILAR TO THAT OF 1986 WHEN WTI REACHED A LOW OF 10 A BARREL THE COLLAPSE WAS SPURRED BY A PRICE WAR AMONG OIL PRODUCERS WHO WERE TRYING TO INCREASE MARKET SHARE AND WERE DISCOUNTING OIL TO SELL MORE OF IT NOW PRODUCERS WANT HIGHER OIL PRICES BUT WANT TO HOLD PRODUCTION AT THE CURRENT LEVEL STILL THERE IS A BEARISH BIAS IN THE OIL MARKETS AND TRADERS CLEARLY WANTED MORE THAN THEY GOT FROM THE OIL MINISTERS BY KEEPING ITS CEILING AND OUTPUT QUOTAS UNCHANGED OPEC IS RUNNING A SERIOUS RISK OF A SIGNIFICANT AND PERHAPS LONGLASTING DETERIORATION IN PRICES EVEN FROM THE ALREADY DEPRESSED LEVELS PREVAILING BEFORE THE CONFERENCE BEGAN THE AUTHORITATIVE MIDDLE EAST ECONOMIC SURVEY WILL REPORT IN ITS WEEKLY ISSUE TO BE PUBLISHED TODAY DESPITE THE THANKSGIVING HOLIDAY A HINT OF THE EXTENT OF THE PRICING DETERIORATION IN THE WAKE OF THE OPEC MEETING HAS COME FROM THE NEW YORK MERCANTILE EXCHANGE WHERE CRUDES SIMILAR TO WTI ARE TRADED ALTHOUGH THE EXCHANGE CLOSED WEDNESDAY BEFORE THE OPEC CONFERENCE ENDED A MASSIVE SELLOFF DEVELOPED IN THE FINAL MINUTES OF TRADING ON AN APPARENT LEAK FROM VIENNA ON THE MEETING'S PENDING OUTCOME JANUARY CRUDE FUTURES WHICH HAD BEEN RISING MADE A SUDDEN SWING DOWNWARD AND SETTLED AT 1638 A BARREL 25 CENTS LOWER FOR THE DAY THERE WAS NO NEW YORK FUTURES TRADING THURSDAY AND FRIDAY THUS ON TODAY'S OPENING THERE SHOULD BE THE FIRST CLEAR SIGNAL OF HOW MUCH FURTHER WORLD OIL PRICES MAY FALL ANALYSTS NOTED THAT BARRING A TURNAROUND IN EARLY EUROPEAN TRADING TODAY A 70CENT DROP IN WTI PRICES IS DUE ON THE NEW YORK MERCANTILE EXCHANGE TO MAINTAIN THE USUAL SPREAD BETWEEN THE US AND NORTH SEA CRUDES RECENTLY THE SPREAD HAS BEEN AROUND 120 A BARREL THAT SUGGESTS IF THE US CRUDE FUTURES PRICE DOESN'T FALL TO 1568 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE WORLD OIL PRICES MAY BE STABILIZING HOWEVER A DROP OF THE US CRUDE'S PRICE THROUGH THAT LEVEL WOULD SIGNAL THAT THE WEAKNESS IN THE OIL MARKETS HAS FURTHER TO GO THE REAL ISSUE IS WHERE IT SETTLES SAID PAUL MLOTOK AN OIL ECONOMIST WITH NEW YORKBASED MORGAN STANLEY & CO WHO HAS LONG MAINTAINED THAT SUPPLYDEMAND FUNDAMENTALS DON'T LOOK AS BAD AS THE MARKET ELSEWHERE CRUDE OIL PRICES APPEAR TO BE IN A FREE FALL DROPPING TO FIVEYEAR LOWS PRICES WHICH RECENTLY HAD BEEN AS MUCH AS 3 TO 4 OR 25 BELOW YEARAGO LEVELS GENERALLY HAVE LOST ANOTHER 1 A BARREL JUST SINCE WEDNESDAY WHEN THE OIL MINISTERS REFUSED TO BOW TO TRADERS' DEMANDS THAT THEY CUT OPEC'S PRODUCTION CEILING OF 245 MILLION BARRELS A DAY THE PROMISE OF LOWER FUEL PRICES HELPED TO BOOST US BOND AND STOCK PRICES FRIDAY PARTICULARLY THE VALUES OF SHARES OF COMPANIES INVOLVED IN TRANSPORTATION BUT STOCKS OF OIL COMPANIES SUCH AS CHEVRON CORP AND ATLANTIC RICHFIELD CO PLUNGED AS MUCH AS 3 TO 4 A SHARE A SHARP DROP IN CRUDEOIL PRICES HAD BEEN EXPECTED IF OPEC HELD VOLUMES AT CURRENT LEVELS ABANDONING AT LEAST FOR THE MOMENT EFFORTS TOWARD ARTIFICIAL RESTRAINTS ON OIL SUPPLIES AND THAT IS WHAT HAPPENED WITH OIL MINISTERS EXPRESSING HOPE THAT WINTER'S SEASONAL RISE IN DEMAND FOR FUEL WILL RESTORE BALANCE TO A GLUTTED OIL MARKET AND LEAD TO A RECOVERY IN PRICES WITHIN A FEW WEEKS BUT AT THE WEEKEND THERE WAS LITTLE EVIDENCE OF ANY SUCH BOTTOM TO THE LONG SLIDE IN PETROLEUM PRICES ALTHOUGH THE DECLINE SLOWED FRIDAY FUTURES PRICES OF THE NORTH SEA BRENT BLEND ONE OF THE WORLD'S BENCHMARK CRUDES FELL ANOTHER 10 CENTS A BARREL ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE OR IPE THAT FOLLOWED DECLINES OF AS MUCH AS 58 CENTS A BARREL ON THURSDAY AND 38 CENTS ON WEDNESDAY FRIDAY'S SETTLEMENT PRICE OF BRENT FOR JANUARY DELIVERY WAS 1448 A BARREL ON THE IPE THERE IS STILL A 5050 CHANCE WE WILL SEE 12 BRENT SAID MR GIGNOUX OF SMITH BARNEY BRENT USUALLY TRADES 1 OR MORE BELOW WEST TEXAS INTERMEDIATE CRUDE 9311290051 931129 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT RHONEPOULENC SA 51 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 24692 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY INTERNATIONAL LTD EACH AMERICAN DEPOSITARY RECEIPT REPRESENTS ONE ORDINARY SHARE GOTA BANK SWEDEN 100 MILLION OF SENIOR FLOATINGRATE EURONOTES DUE DECEMBER 1998 AT ISSUE AND FIXED REOFFER PRICE 9977 VIA CHEMICAL INVESTMENT BANK LTD INTEREST PAID SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS 45 BASIS POINTS FEES 025 GUJARAT AMBUJA CEMENT INDIA 80 MILLION OF 35 CONVERTIBLE EUROBONDS DUE JUNE 30 1999 AT ISSUE PRICE PAR VIA JARDINE FLEMING HOLDINGS LTD CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT CONVERSION PRICE 37345 INDIAN RUPEES A PREMIUM OF 7636 OVER AVERAGE CLOSING SHARE PRICE FOR THE SEVEN BUSINESS DAYS ENDED NOV 25 THE FOREIGNEXCHANGE RATE IS 3137 RUPEES PER US DOLLAR CONVERSION PERIOD RUNS FROM FEB 1 TO MAY 31 1999 BONDS CALLABLE AFTER DEC 31 1995 AT PAR FEES UNDETERMINED ONTARIO CANADIAN PROVINCE 15 BILLION MARKS OF 6255 EUROBONDS DUE JAN 13 2004 AT ISSUE PRICE 102175 VIA CSFBEFFECTENBANK AG AND DEUTSCHE BANK AG REOFFERED AT 995 TO YIELD 632 A MARGIN OF 48 BASIS POINTS OVER THE 6 GERMAN BUND OF SEPTEMBER 2003 FEES THREE PARIS FRENCH MUNICIPALITY ONE BILLION FRENCH FRANCS OF 5875 EUROBONDS DUE DEC 21 2001 AT ISSUE AND FIXED REOFFER PRICE OF 9922 VIA CREDIT COMMERCIAL DE FRANCE AT REOFFER PRICE BONDS YIELD 6 A SPREAD OF 19 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES 03 SUMITOMO REALTY & DEVELOPMENT CORP JAPAN 30 BILLION YEN OF 355 EUROBONDS DUE DEC 10 1997 AT ISSUE PRICE 1014 VIA DAIWA EUROPE LTD REOFFERED AT 99875 TO YIELD 357 FEES 1875 TWO SHORT FIRST COUPONS SUMITOMO REALTY & DEVELOPMENT CORP JAPAN 30 BILLION YEN OF 38 EUROBONDS DUE DEC 10 2000 AT ISSUE PRICE 101575 VIA NIKKO EUROPE PLC REOFFERED AT 100025 TO YIELD 3796 FEES 1875 TWO SHORT FIRST COUPONS SUMITOMO REALTY & DEVELOPMENT CORP JAPAN 20 BILLION YEN OF 305 EUROBONDS DUE DEC 10 1997 AT ISSUE PRICE 101525 VIA DAIWA EUROPE LTD REOFFERED AT 1002 TO YIELD 2996 FEES 1475 TWO SHORT FIRST COUPONS VORARLBERGER KRAFTWERKE AG AUSTRIA 120 MILLION SWISS FRANCS OF 4125 PUBLIC BONDS DUE JAN 18 2002 PRICED AT 102125 VIA CREDIT SUISSE FEES 2625 9311290050 931129 CORPORATE FOCUS ACX STRIVES TO BECOME ALUMINUM'S LOWCOST PRODUCER BUT CHAIRMAN COORS MUST SOLVE DEARTH OF CUSTOMERS AMID MARKET GLUT BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL GOLDEN COLO BILL COORS HAS HAD SOME TERRIFIC IDEAS OVER THE YEARS IF ONLY HE COULD FIGURE OUT THIS TIMING THING IN 1953 FOR EXAMPLE MR COORS SET OUT TO MAKE AN ALUMINUM CAN FOR HIS FAMILY'S ADOLPH COORS CO BEER A PROJECT HE EXPECTED TO TAKE SIX MONTHS IT TOOK SIX YEARS BUT HIS SUCCESS EVENTUALLY PUSHED THE ENTIRE BEVERAGE INDUSTRY TOWARD THE ALUMINUM CAN THEN IN 1980 THE COMPANY BEGAN LOOKING FOR A WAY TO RECYCLE MORE CANS BACK INTO NEW CANS A PROJECT MR COORS THOUGHT COULD BE COMPLETED IN TWO YEARS SUCCESS IN THAT VENTURE HAS TAKEN 13 YEARS BUT IT MAY EVENTUALLY CAUSE A SIMILAR REVOLUTION THIS TIME IN ALUMINUM PRODUCTION NOW CONSIDER ACX TECHNOLOGIES INC'S NEW ALUMINUM MINIMILL IN SAN ANTONIO THE COMPANY SPUN OFF FROM COORS LAST DECEMBER HAS FINALLY MASTERED THE TECHNIQUE OF PRODUCING ALUMINUMCAN SHEET FROM 95 RECYCLED CANS JUST AS THE MARKET FOR CAN SHEET AND ALL OTHER ALUMINUM PRODUCTS HAS HIT THE SKIDS MASSIVE ALUMINUM EXPORTS FROM RUSSIA HAVE FLOODED THE MARKET AND SLUGGISH EUROPEAN AND JAPANESE ECONOMIES HAVEN'T HELPED SOAK UP THE EXCESS AT THE SAME TIME BREWERS ARE SELLING MORE BEER IN BOTTLES AND SOFTDRINK MAKERS ARE OPTING FOR PLASTIC CONTAINERS BEVERAGE CANS ALSO ARE GETTING THINNER AND THUS USING LESS ALUMINUM AS BOTTLERS SEEK TO CUT COSTS AS A RESULT THE PRICE FOR ALUMINUM ON THE LONDON METAL EXCHANGE HAS DROPPED TO ABOUT 47 CENTS A POUND DURING THE PAST 12 MONTHS FROM AN ALREADYANEMIC 52 CENTS THREE YEARS AGO THE PRICE WAS AROUND 70 CENTS A POUND IT'S JUST BAD TIMING AND BAD LUCK THAT THE ACX PLANT IS COMING UP JUST AS THEY CAN'T GET A GOOD PRICE FOR THEIR PRODUCT SAYS PAMELA TAFT ANALYST AT MERRILL LYNCH IN NEW YORK BUT THE MARKET RARELY EXCUSES BAD LUCK AND MS TAFT AND OTHERS SAY ACX MUST PROVE TO ITS SHAREHOLDERS SOON THAT IT CAN FIND CUSTOMERS FOR ITS ALUMINUM AND JUSTIFY THE 200 MILLION IT HAS SPENT BUILDING THE MILL THE FACT THAT ACX HASN'T BEEN QUALIFIED OR APPROVED TO PRODUCE CAN SHEET FOR ANY CAN MAKER OTHER THAN COORS IS STARTING TO WEAR ON SHAREHOLDERS SAYS MS TAFT IF ACX DOESN'T ANNOUNCE ANY NEW ALUMINUM CUSTOMERS BY JANUARY YOU'LL SEE SIGNFICANT DISAPPOINTMENT REFLECTED IN THE STOCK PRICE SHE SAYS GETTING THOSE NEW CUSTOMERS WON'T BE EASY GIVEN THE GLUT OF ALUMINUM ON THE MARKET CONCEDES JOE COORS BILL'S NEPHEW AND ONE OF THREE MEMBERS OF THE OFFICE OF THE PRESIDENT AT ACX IT'S TOUGH BECAUSE THERE'S NO NEED FOR THE CAN MANUFACTURERS TO QUALIFY THE NEW KID ON THE BLOCK HE SAYS THEY'RE IN THE CATBIRD'S SEAT BUT ACX HOPES TO WIN THEM OVER ANYWAY BY BEING THE LOWCOST PRODUCER USING RECYCLED CANS AS FEEDSTOCK REDUCES THE RAWMATERIAL COSTS OF PRODUCING ALUMINUM ABOUT 10 TO 15 AND ITS MINIMILL USES ONLY ABOUT 20 OF THE ELECTRICITY USED BY A STANDARD MILL TO MAKE A POUND OF ALUMINUM WE'RE SUPPOSED TO BE THE LOWCOST PRODUCER JOE COORS SAYS WE'LL PROVE IT AT SAN ANTONIO ACX'S GOLDEN ALUMINUM UNIT IS TRYING TO FORGE THE SAME MINIMILL REVOLUTION IN ALUMINUM THAT NUCOR CORP DID WHEN IT PROVED IT COULD MAKE STEEL FROM SCRAP AT LOWCOST MINIMILLS IN THE 1980S ABOUT THAT TIME COORS DECIDED IT WANTED TO INCREASE THE MARKET FOR USED CANS WHICH IT HAD BEEN COLLECTING AND SELLING TO ALUMINUM PLANTS OFTEN AT A LOSS SINCE 1959 I WANTED TO CLOSE THE LOOP SAYS BILL COORS WHO IS CHAIRMAN OF BOTH ACX AND COORS A TYPICAL ALUMINUM OPERATION CREATES ALUMINUM INGOTS IN A SMELTER FROM BAUXITE ORE AND IN SOME CASES SCRAP ALUMINUM SUCH AS BEVERAGE CANS THE INGOTS ARE THEN SLAMMED BACK AND FORTH THROUGH ROLLING MILLS TO ACHIEVE THE REQUIRED THICKNESS THE TYPICAL CAN SHEET AT THE BIG ALUMINUM MILLS IS MADE FROM ABOUT 50 USED BEVERAGE CANS KNOWN IN THE INDUSTRY AS UBCS BUT BILL COORS HAD BIGGER AMBITIONS FOR UBCS SO HE BOUGHT OUT THE MINIMILL TECHNOLOGY THAT COORS HAD HELPED DEVELOP IN EUROPE AND BUILT A MINIMILL IN FORT LUPTON COLO THAT WOULD USE 95 UBCS THE MILL GRINDS AND MELTS UBCS AND THEN POURS A THIN SHEET OF ALUMINUM THROUGH A CONTINUOUS CASTER TO MAKE ALUMINUM SHEET FOR THE TOPS AND TABS OF BEVERAGE CANS IT TOOK SEVEN YEARS TO DEVELOP THE RIGHT ALLOYS AND FINETUNE THE PROCESS THE NEXT STEP FOR GOLDEN ALUMINUM WAS TO PRODUCE SHEET THAT COULD BE USED TO MAKE THE BODY OF THE CAN THE NATION'S NO 1 USE FOR ALUMINUM AND THE ENDPRODUCT WITH THE MOST EXACTING SPECIFICATIONS GOLDEN ALUMINUM ANNOUNCED IN MID1991 THAT IT WOULD MAKE CAN SHEET AT THE NEW SAN ANTONIO FACILITY THE MILL THE COMPANY SAID WOULD BE UP AND RUNNING IN A YEAR AN ESTIMATE THAT ONCE AGAIN WAS OVERLY OPTIMISTIC AND EVEN A BIT ARROGANT COMPANY OFFICIALS NOW CONCEDE THE PLANT FELL 18 MONTHS BEHIND SCHEDULE FINALLY GOLDEN ALUMINUM SHEET WAS READY FOR TESTING BY CAN MAKERS THIS PAST SUMMER AGAIN THAT PROVED TO BE BAD TIMING SUMMER IS A CAN MAKER'S BUSIEST SEASON OF THE MAJOR CAN MAKERS COORS NOT SURPRISINGLY WAS ALONE IN MAKING TIME THIS SUMMER TO QUALIFY GOLDEN ALUMINUM'S SHEET ONLY NOW ARE OTHER MAJOR CAN MAKERS TAKING ON THE METAL FOR TESTING THIS YEAR THE SAN ANTONIO MILL WILL SHIP ABOUT 50 MILLION POUNDS OF ALUMINUM NEXT YEAR THE COMPANY EXPECTS THE PLANT TO SHIP ABOUT 100 MILLION POUNDS OR HALF ITS CAPACITY BUT THAT DEPENDS ON GETTING NEW CUSTOMERS R DOUGLAS MOFFAT ANALYST AT ROBINSONHUMPHREY CO IN ATLANTA THINKS THAT WILL HAPPEN THERE'S A GREAT DEAL OF EXCITEMENT IN CANMAKING CIRCLES THAT GOLDEN ALUMINUM HAS COME UP WITH A BETTER PRODUCT HE SAYS NOT ONLY ARE GOLDEN'S COSTS ABOUT TWOTHIRDS OF THOSE OF THE BIG ALUMINUM MAKERS HE ESTIMATES BUT THE MINIMILL IS MORE FLEXIBLE ALLOWING GOLDEN TO MAKE CHANGES IN ALLOYS TO CUSTOMER SPECIFICATIONS LUCKILY FOR ACX ITS OTHER UNITS ARE PULLING THE COMPANY THROUGH THIS TOUGH TIME WITH SOLID EARNINGS IN THE LATEST NINE MONTHS ACX REPORTED NET INCOME OF 104 MILLION OR 82 CENTS A SHARE COMPARED WITH A NET LOSS OF 14 MILLION THE YEAR BEFORE SALES ROSE ABOUT 9 TO 484 MILLION FROM 443 MILLION THE COMPANY'S PAPERPACKAGING UNIT FOUND A PROFITABLE NICHE IN WATERBARRIER PACKAGING MATERIAL FOR NEW CONCENTRATED DETERGENTS AND ITS CERAMICS UNIT BEGAN TO REALIZE THE BENEFITS OF BEING THE LAST USOWNED NONCAPTIVE PRODUCER OF HIGHTECHNOLOGY CERAMICS USED IN COMPUTER BOARDS AND AUTOMOTIVE PARTS BUT AS JOE COORS READILY CONCEDES SHAREHOLDERS DIDN'T BUY ACX STOCK LAST WINTER BECAUSE OF AN INTEREST IN DETERGENT PACKAGES OR COMPUTER BOARDS AFTER IT STARTED TRADING DEC 10 ACX SOARED TO 2175 FROM 1075 IN THE FIRST 20 DAYS FRIDAY IN TRADING ON THE NASDAQ STOCK MARKET ACX STOCK CLOSED AT 39375 DOWN 625 CENTS WE WERE VIEWED AS A NUCOR PLAY HE SAYS OUR SUCCESS WILL BE IN MAKING THE ALUMINUM PLANT WORK CERAMIC AUTO PARTS AND COMPUTER BOARDS ALUMINUM CONSUMERPRODUCTS PACKAGING THE COMPANY HAS UNIQUE TECHNOLOGIES IN NICHE MARKETS IN THREE DIFFERENT INDUSTRIES AND THEREFORE DOESN'T HAVE ANY COMPARABLE COMPETITORS 9311290049 931129 BUSINESS BRIEF QUESTEX GROUP LTD ACQUISITION TO BE RESCINDED OVER FINANCIALDATA CONFLICT QUESTEX GROUP LTD SAID IT INTENDS TO RESCIND ITS PREVIOUSLY REPORTED ACQUISITION OF GREEN RIVER COAL INC IN A STATEMENT PHOENIXBASED QUESTEX SAID THAT GREEN RIVER GAVE IT AUDITED FINANCIAL STATEMENTS INDICATING A COST BASIS OF COAL LEASES OF AT LEAST 12 MILLION WHICH WAS A MATERIAL PART OF THE TRANSACTION QUESTEX SAID THAT AFTER A NUMBER OF REQUESTS IT HAS NOT RECEIVED SATISFACTORY VERIFICATION OF SUCH FIGURES FROM GREEN RIVER AND CONCLUDED THAT ITS ONLY ALTERNATIVE UNDER THE CIRCUMSTANCES WAS TO RESCIND THE TRANSACTION QUESTEX SAID IT HAD ACQUIRED 95 OF GREEN RIVER'S SHARES OUTSTANDING IN EXCHANGE FOR 5937500 RESTRICTED COMMON SHARES 9311290048 931129 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON DC BRADLEY SPARKS 47 YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER AT THIS TELECOMMUNICATIONS AND LONGDISTANCE SERVICES PROVIDER SUCCEEDING JAMES SCHNEIDER 41 WHO WAS NAMED SENIOR VICE PRESIDENT FINANCE FOR CONSUMER MARKETS JONELLE ST JOHN 39 WAS NAMED VICE PRESIDENT AND TREASURER SUCCEEDING MR SPARKS KEITH STEINER 38 WAS NAMED VICE PRESIDENT OF NETWORK ENGINEERING TO SUCCEED JERRY HOGAN 56 WHO WAS NAMED VICE PRESIDENT TRANSMISSION SYSTEMS CONSTRUCTION SUSAN MAYER 43 WAS NAMED VICE PRESIDENT OF CORPORATE DEVELOPMENT TO SUCCEED JOHN WHITESIDE WHO IS NOW SENIOR VICE PRESIDENT RESPONSIBLE FOR THE MCI ALLIANCE WITH BRITISH TELECOM 9311290047 931129 BUSINESS BRIEF COMMERCE GROUP INC UNIT'S OFFERING IS POSTPONED DUE TO MARKET CONDITIONS' COMMERCE GROUP INC SAID IT POSTPONED AN INITIAL PUBLIC OFFERING OF STOCK IN ITS COMMERCE HOLDINGS INC UNIT DUE TO EXTERNAL MARKET CONDITIONS THE WEBSTER MASS INSURANCE HOLDING COMPANY SAID THE POSTPONEMENT WAS DUE TO THE RECENT DECLINES IN THE VALUE OF STOCKS OF FINANCIALSERVICES COMPANIES INCLUDING THOSE OF PUBLICLY TRADED PROPERTYCASUALTY INSURANCE COMPANIES COMMERCE SAID IT WILL MONITOR THE MARKET FOR A TIME MORE FAVORABLE FOR AN OFFERING COMMERCE HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 65 MILLION SHARES OF COMMERCE HOLDINGS WHICH IS A NEWLY FORMED UNIT ALSO BASED IN WEBSTER 9311290045 931129 LETTERS TO THE EDITOR ALGER HISS ANSWERS NEW CHARGES I AM WRITING TO REPUDIATE THE MANY FALSE CHARGES AND INSINUATIONS ABOUT ME SET FORTH ON YOUR NOV 18 EDITORIAL PAGE BY SAM TANENHAUS NEW REASONS TO DOUBT HISS ACCORDING TO MR TANENHAUS THE 1946 FILE OF A STATE DEPARTMENT EMPLOYEE SAMUEL KLAUS SUPPORTS MR TANENHAUS'S IDEE FIXE THAT I WAS A SOVIET ESPIONAGE AGENT I HAVE NOT SEEN THE KLAUS PAPERS BUT THEIR GIST ACCORDING TO MR TANENHAUS IS THAT MY STAFF AND I PERSONALLY WERE CARELESS WITH CONFIDENTIAL MATERIAL IN 1946 MR TANENHAUS IMPLIES THAT MY SUPPOSED CARELESSNESS WAS DELIBERATE AND SOMEHOW IN THE INTERESTS OF THE SOVIET UNION I REMEMBER SAMUEL KLAUS AS A COLD WARRIOR MONITOR OF OFFICE PROCEDURES HIS FILE AS SUMMARIZED BY MR TANENHAUS FITS MY RECOLLECTION OF HIS OVERHEATED SUSPICIONS I HAVE NO REASON TO BELIEVE THAT HIS REPORTS ABOUT ME IF ACCURATELY DESCRIBED BY MR TANENHAUS WERE TAKEN SERIOUSLY BY ANYONE IN AUTHORITY AT THE STATE DEPARTMENT AT NO TIME DID ANY SUPERIOR OF MINE EVER TELL ME THAT HE FOUND FAULT WITH MY TREATMENT OF CONFIDENTIAL MATERIAL OR WITH THE SECURITY PROCEDURES OF MY STAFF IN FACT TWO SECRETARIES OF STATE JAMES F BYRNES AND EDWARD STETTINIUS WROTE ME LETTERS COMMENDING MY STATE DEPARTMENT WORK MR TANENHAUS CHARGES THAT I ENABLED THE COLUMNIST DREW PEARSON TO SEE A CONFIDENTIAL REPORT ON THE POSTWAR SITUATION IN GREECE ACCORDING TO MR TANENHAUS PEARSON'S BUNGLED ACCOUNT THREATENED TO DISRUPT ANGLOAMERICAN RELATIONS MR TANENHAUS THEN CONNECTS ALL THIS TO A STATEMENT HE ATTRIBUTES TO WHITTAKER CHAMBERS THAT ALGER HISS'S PRIMARY ROLE IN THE SOVIET UNDERGROUND WAS TO MESS UP POLICY' AS THE LEAK TO DREW PEARSON THREATENED TO DO THE SHORT ANSWER TO THIS NONSENSE IS THAT I REGARDED DREW PEARSON AS AN UNRELIABLE SNOOP AND HE NEVER GOT ACCESS FROM ME TO ANY REPORT MR TANENHAUS ALSO FINDS DARKLY SUSPICIOUS THE FACT THAT MY STATE DEPARTMENT OFFICE RECEIVED INFORMATION IN 1946 CONCERNING UN TRUSTEESHIP AND ATOMIC ENERGY MATTERS MY OFFICE SPECIAL POLITICAL AFFAIRS WAS EXPRESSLY RESPONSIBLE FOR OUR COUNTRY'S RELATIONS WITH THE UN INCLUDING THE TOPICS OF TRUSTEESHIPS AND INTERNATIONAL CONTROL OF ATOMIC ENERGY SUCH INFORMATION THEREFORE CAME TO ME AS A MATTER OF COURSE IN ADDITION MY OFFICE LIKE MANY OTHER STATE DEPARTMENT OFFICES RECEIVED A WIDE ARRAY OF OTHER POLITICAL INFORMATION NEITHER KLAUS NOR MR TANENHAUS WAS OR IS JUSTIFIED IN FINDING ANYTHING IMPROPER ABOUT THE MATERIALS IN MY OFFICE FINALLY MR TANENHAUS FALSELY IMPLIES THAT I RESIGNED FROM THE STATE DEPARTMENT BECAUSE OF KLAUS'S INQUIRY ON THE CONTRARY I LEFT TO BECOME PRESIDENT OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE A JOB OFFERED TO ME BY JOHN FOSTER DULLES WHO WAS CHAIRMAN OF THE ENDOWMENT'S BOARD AND LATER BECAME PRESIDENT EISENHOWER'S SECRETARY OF STATE 9311290044 931129 LEISURE & ARTS THEATER CLASSICS REINCARNATED BY MELANIE KIRKPATRICK NEW YORK IN HER FEMINIST ESSAY A ROOM OF ONE'S OWN VIRGINIA WOOLF CONTEMPLATED THE COURSE LITERATURE MIGHT HAVE TAKEN HAD SHAKESPEARE HAD A SISTER WELL PAULA VOGEL WHO PROBABLY HAS A HOUSE FULL OF ROOMS OF HER OWN HINTS AT WHAT MIGHT HAVE BEEN IN DESDEMONA A PLAY ABOUT A HANDKERCHIEF CIRCLE REP MS VOGEL DOES FOR OTHELLO WHAT TOM STOPPARD DID FOR HAMLET SHE'S TAKEN A GREAT TRAGEDY AND TRANSFORMED IT INTO A SCREWBALL COMEDY HER HANKIE DOESN'T HAVE THE VERBAL VIRTUOSITY OF STOPPARD'S ROSENCRANTZ AND GUILDENSTERN ARE DEAD BUT IT IS NEVERTHELESS A DELICIOUSLY DEMENTED VERSION OF THE MOOR'S TALE SHAKESPEARE'S STORY IS TOLD THROUGH THE EYES OF THE PLAY'S THREE WOMAN CHARACTERS DESDEMONA THE CHASTE WIFE WHO HERE BECOMES AN OVERSEXED BORED HOUSEWIFE WITH A PARTTIME JOB IN A BROTHEL HER SERVANT EMILIA LONGSUFFERING MATE OF THE SCHEMING IAGO WHOSE GREAT VILLAINY IS EXPLAINED AWAY AS COMPENSATION FOR A DIMINUTIVE SEXUAL ORGAN AND BIANCA AN EARTHY PROSTITUTE IN LOVE WITH CASSIO THE MAN OTHELLO SUSPECTS OF SEDUCING HIS WIFE IN THE TOPSYTURVY SEXUAL POLITICS OF MS VOGEL'S PLAY BIANCA SUSPECTS DESDEMONA OF SEDUCING CASSIO WHILE IN FACT DESDEMONA HAS HER EYE ON BIANCA HERSELF THE PLAY'S MADCAP HUMOR FALTERS ONLY TOWARD THE END WHEN IT TURNS INTO MANIC DESPERATION AND WE REALIZE THAT THE LADIES HAVE BEEN MERRILY SCAMPERING AWAY FROM GRIM REALITY IN THE PLAY'S CHILLING FINAL MOMENTS EMILIA AND DESDEMONA PLOT THEIR ESCAPE FROM THEIR HUSBANDS AND DESDEMONA GOES OFF TO BED AND THE BLOODY FATE WE KNOW AWAITS HER THERE THE LOVELY J SMITHCAMERON IS A SEDUCTIVE AND POUTY DESDEMONA FRAN BRILL PLAYS EMILIA AS CROTCHETY AND DOWNTRODDEN AND CHERRY JONES MAKES A LUSTY AND ATHLETIC BIANCA LIKE PAULA VOGEL PLAYWRIGHT DONALD MARGULIES ALSO BELIEVES IN REINCARNATING THE CLASSICS BUT HIS THE LOMAN FAMILY PICNIC HAS COME BACK TO LIFE AS A MUCH DIMINISHED WHELP OF ARTHUR MILLER'S DEATH OF A SALESMAN LIKE WILLY LOMAN MR MARGULIES'S LEADING CHARACTER IS A DOWNANDOUT SALESMAN WHO LIVES IN BROOKLYN WITH HIS WIFE HIS TWO SONS AND HIS FAILED DREAMS PART COMEDY PART TRAGEDY PICNIC IS UNSATISFACTORY ON BOTH LEVELS THAT SAID THERE IS MUCH TO LIKE ABOUT IT A NUMBER OF SHARP ONELINERS A POIGNANT RASHOMONLIKE ENDING AND A STERLING CAST THE BEST FEATURE OF THE SHOW IS THE EVER DELIGHTFUL CHRISTINE BARANSKI WHO IS BOTH HILARIOUS AND TOUCHING AS THE SALESMAN'S CARPING EXUBERANT WIFE WHO HAS FALLEN OUT OF LOVE WITH HIM THE LOMAN FAMILY PICNIC IS AT THE MANHATTAN THEATER CLUB NURTURER OF MANY FINE NEW PLAYS ALSO AT MTC IS JOHN PATRICK SHANLEY'S MALICIOUSLY FUNNY COMEDY FOUR DOGS AND A BONE THE BONE OF THE TITLE IS AN OVERBUDGET FILM THAT IS UNDER PRODUCTION IN MANHATTAN AND THE FOUR DOGS ARE THE PRODUCER TONY ROBERTS SCREENWRITER LOREN DEAN AND ACTRESSES POLLY DRAPER AND MARYLOUISE PARKER WHO ARE SNIFFING AND SCRATCHING AND BITING EACH OTHER AS THEY SCRAMBLE FOR THE LION'S SHARE OF GLORY EVERY CHARACTER IS WICKEDLY AMBITIOUS AND OHSOTHEATRICAL EACH IS DELECTABLE MS DRAPER AS THE AGING SLEEPYOURWAYTOSUCCESS ACTRESS WHO DREADS BEING CAST AS SOMEONE'S AUNT MS PARKER AS THE UPANDCOMING INGENUE WHO CLAIMS SHE OWES HER SUCCESS TO BUDDHISTSTYLE CHANTING MR ROBERTS A STALWART OF WOODY ALLEN FILMS AS THE PORCINE PRODUCER MR DEAN AS A WRITER OF CHERUBIC NASTINESS MR SHANLEY'S SCRIPT IS FILLED WITH ADROITLY AIMED VENOMOUS BARBS IT IS ALL SPLENDIDLY EVIL AND GREAT GOOD FUN THE SAME CAN'T BE SAID ALAS OF ELIZABETH EGLOFF'S THE SWAN JOSEPH PAPP PUBLIC THEATER AN ABSURDIST COMEDY WITH A SINGLE FUNNY IDEA THAT CAN'T CARRY THE 100MINUTE SHOW THE FUNNY IDEA IS TO HAVE A TRUMPETER SWAN CRASH INTO A YOUNG WOMAN'S LIVINGROOM WINDOW AND THEN TURN INTO A NAKED MAN WHO STRUTS AND STOMPS AND HONKS HIS WAY AROUND THE HOUSE SNUFFLING PIZZA PLAYING ROCKANDROLL ON THE RADIO ENDEARING HIMSELF TO THE WOMAN AND ANNOYING HER BOYFRIEND NATURALLY THE WOMAN FALLS FOR THE SWAN PROMPTING THE JEALOUS BOYFRIEND TO FINALLY LEAVE HIS WIFE AND OFFER TO MARRY HER BY THIS TIME HOWEVER THE SWAN WHO MAY OR MAY NOT BE A FIGMENT OF THE WOMAN'S IMAGINATION HAS DRIVEN HER CRAZY PETER STORMARE A SWEDISH ACTOR WHO HAS COLLABORATED OFTEN WITH INGMAR BERGMAN DOES THE BEST SWAN IMITATION I HAVE EVER SEEN AND THAT'S WITHOUT A COSTUME NOT EVEN A FEATHER JUST HIS SKIN TOO BAD THE SHOW IS A TURKEY IN EACH OF THESE FOUR SHOWS COMEDY REIGNS SUPREME OR OTHERWISE OVER AT LINCOLN CENTER HOWEVER THERE'S NOT A CHUCKLE OR A CHORTLE TO BE HAD IN HOWARD KORDER'S THE LIGHTS THIS IS AN UNREMITTINGLY BLEAK PORTRAIT OF LIFE IN AN UNNAMED CITY THAT WILL LOOK FAMILIAR TO ANYONE WHO'S SURVIVED THE SUBWAY RIDE TO LINCOLN CENTER THEFT ASSAULT RAPE ATTEMPTED MURDER ALL THE WELLKNOWN PASTIMES OF URBAN AMERICA ARE RECORDED HERE NOTHING ABOUT THE SCRIPT NEITHER LANGUAGE NOR CHARACTER NOR PLOT IS PARTICULARLY MEMORABLE BUT THE IMAGES WILL PERSIST LONG AFTER YOU'VE WALKED OUT INTO THE NIGHT MOST RIVETING OF ALL IS A SCENE IN AN ABANDONED HOTEL WHERE A GROUP OF UNEMPLOYED MEN DESPERATE FOR JOBS TEAR APART THE WALLS LOOKING FOR COPPER WIRE THEY CAN LOOT DIRECTED BY MARK WINGDAVEY THE LIGHTS IS AS MENACING AS A STROLL THROUGH THE SOUTH BRONX AT MIDNIGHT 9311290043 931129 COMMODITIES MERGER PLANS TEST COMMODITY INDUSTRY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PLAGUED BY OVERCAPACITY THE US FUTURES AND OPTIONS INDUSTRY IS LOCKED IN A ROUGHANDTUMBLE COMPETITION FOR LIMITED BUSINESS THAT MANY SAY CAN BE EASED ONLY THROUGH CONSOLIDATION BUT DESPITE YEARS OF TALK JUST THREE CONCRETE MERGERS HAVE BEEN PROPOSED AND ONLY THE SMALLEST AND LEAST COMPLICATED OF THEM APPEARS TO HAVE A BETTERTHANEVEN CHANCE OF BECOMING REALITY IF THE MERGERS AREN'T COMPLETED PROPONENTS SAY THE MORE THAN A DOZEN US FUTURES AND OPTIONS MARKETS ARE LIKELY TO CONTINUE DUPLICATING COSTS AND FIGHTING AMONG THEMSELVES FOR YEARS IF THIS DOESN'T GO THROUGH I WOULD SAY IT DOESN'T BODE WELL FOR THE FUTURE CONSOLIDATION OF OTHER INSTITUTIONS SAYS DANIEL RAPPAPORT CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE WHO IS TRYING TO NEGOTIATE A MERGER WITH NEW YORK'S COMMODITY EXCHANGE IT WOULD SUGGEST MR RAPPAPORT ADDS THAT DESPITE THE OVERWHELMING LOGIC AND GOOD BUSINESS SENSE THE MERGER MAKES THE JEALOUSIES AND VESTED POLITICAL INTERESTS JUST COULD NOT BE OVERCOME BESIDES THE PROPOSED MERGER OF NYMEX AND COMEX THE CHICAGO BOARD OPTIONS EXCHANGE HAS PROPOSED ACQUIRING THE PHILADELPHIA STOCK EXCHANGE AND FINEX THE FINANCIAL DIVISION OF NEW YORK'S COTTON EXCHANGE IS TRYING TO ACQUIRE THE NEW YORK FUTURES EXCHANGE OR NYFE A TINY UNIT OF THE NEW YORK STOCK EXCHANGE THE THREE PROPOSALS ARE EXPECTED TO BE DECIDED WITHIN THE NEXT FEW MONTHS ONLY THE FINEX DEAL SEEMS TO HAVE A BETTER THAN 50 CHANCE OF SUCCESS ONE THING THAT MAKES THE FINEX DEAL SIMPLER THAN THE OTHERS IS THAT NYFE WHICH TRADES FUTURES CONTRACTS ON SMALLVOLUME STOCK INDEXES IS ON THE FINEX TRADING FLOOR FINEX IS BEST KNOWN FOR ITS DOLLARINDEX FUTURES CONTRACTS WHICH PIT THE US DOLLAR'S VALUE AGAINST A GROUP OF OTHER CURRENCIES MOREOVER UNLIKE TRADERS AT THE OTHER EXCHANGES ATTEMPTING MERGERS THOSE AT NYFE AND FINEX TEND TO REGARD ONE ANOTHER AS COLLEAGUES RATHER THAN COMPETITORS WE SIMPLY DON'T HAVE THE POLITICAL COMPLEXITIES THAT PLAGUE MOST OF THESE EXCHANGES WHEN THEY LOOK AT MERGERS SAYS L HUNT TAYLOR CHAIRMAN OF FINEX MR TAYLOR SAYS FINEX AND NYFE ARE CLOSE TO TERMS ON THE DEAL WHICH LIKELY WILL INVOLVE AN UNSPECIFIED CASH PAYMENT FROM FINEX TO THE BIG BOARD BUT THE MERGER OF THE TWO TINY EXCHANGES WOULD HARDLY QUALIFY AS A CONSOLIDATION TREND THE OTHER BIGGER DEALS IN THE WORKS ARE MORE PROBLEMATIC AT THE PHILADELPHIA STOCK EXCHANGE TRADERS' OPINIONS ARE SHARPLY DIVIDED ABOUT A CHICAGO BOARD OPTIONS EXCHANGE PLAN TO ACQUIRE THEIR MARKET CBOE WHICH REFUSES TO COMMENT HAS OFFERED ABOUT 135000 FOR EACH OF THE PHILADELPHIA EXCHANGE'S 505 MEMBERSHIPS FOR A PURCHASE PRICE OF ABOUT 68 MILLION THE PHILADELPHIA EXCHANGE IS BEST KNOWN FOR ITS STOCKOPTIONS CONTRACTS WHICH INCLUDE SUCH POPULAR ISSUES AS HOME DEPOT AND FANNIE MAE AND ITS BOOMING CURRENCYOPTIONS MARKET WITH PHILADELPHIA EXCHANGE MEMBERSHIPS TRADING FOR ONLY ABOUT 20000 WHEN CBOE TENDERED ITS OFFER THE BID SEEMED SO HIGH TO SOME PHILADELPHIA TRADERS AS TO ALMOST GUARANTEE SUCCESS UNDER THE DEAL FOR EXAMPLE THE 200 OR SO PHILADELPHIA MEMBERSHIP HOLDERS WHO LEASE THEIR SEATS TO OTHER TRADERS COULD SELL THEM TO CBOE FOR SIX TIMES THEIR VALUE YET OPPOSITION QUICKLY SURFACED THERE ARE A LOT OF PEOPLE HERE WHO DON'T LIKE IT SAYS KEVIN MCNAMARA PRESIDENT OF MCNAMARA TRADING AN INSTITUTIONAL STOCKBROKERAGE AND SPECIALIST FIRM AT THE PHILADELPHIA EXCHANGE IT'S MY GUESS THAT IT WILL BE DEFEATED ONE PROBLEM HE SAYS IS RELOCATION THE CBOE OFFER WOULD REQUIRE ALL STOCKOPTIONS AND CURRENCYOPTIONS TRADERS AT THE PHILADELPHIA EXCHANGE TO MOVE TO CHICAGO AND MANY TRADERS ARE BALKING AND MANY OF THE BROKERAGE FIRMS THAT OWN MEMBERSHIPS AT THE EXCHANGE INCLUDING PHILADELPHIABASED FIRMS AND WALL STREET FIRMS HAVE LEASED OR PURCHASED OFFICE SPACE IN PHILADELPHIA AND SET UP TRADING OPERATIONS THERE THE EXCHANGE'S STOCK OPERATION WOULD REMAIN IN PHILADELPHIA BUT CBOE WOULD HAVE THE RIGHT UNDER THE PROPOSAL'S TERMS TO CLOSE IT AFTER THREE YEARS THAT SCARES MANY PHILADELPHIA STOCK TRADERS FOR THE DEAL TO GO FORWARD THE PHILADELPHIA EXCHANGE'S 28MEMBER BOARD OF DIRECTORS MUST APPROVE IT THEN TWOTHIRDS OF THE EXCHANGE'S MEMBERSHIP OWNERS WOULD HAVE TO VOTE AFFIRMATIVELY OPPONENTS OF THE DEAL ASSERT THAT THEIR CAMP CONTROLS FAR MORE THAN THE MINIMUM 171 VOTES NECESSARY TO DEFEAT IT THE COMEXNYMEX MERGER PROPOSAL IS DIFFERENT BECAUSE BOTH EXCHANGES ARE IN NEW YORK CITY IN FACT THEIR TRADING FLOORS ARE NEXT TO ONE ANOTHER AT THE WORLD TRADE CENTER NYMEX THE BIGGER OF THE TWO IS KNOWN FOR ITS CONTRACTS ON ENERGY FUTURES AND OPTIONS WHILE COMEX TRADES PRECIOUSMETALS CONTRACTS NYMEX TO PAY 35 MILLION TERMS OF THE DEAL CALL FOR NYMEX TO PAY 35 MILLION FOR COMEX WHICH WOULD BE DIVIDED AMONG COMEX MEMBERS THESE COMEX TRADERS ALSO WOULD RECEIVE 15 MILLION IN COMPENSATION FROM THEIR EXCHANGE'S OWN REVENUE STAFF AND TRADECLEARING FUNCTIONS OF THE TWO EXCHANGES WOULD BE MERGED MR RAPPAPORT OF NYMEX ESTIMATES THAT THE DEAL COULD SAVE 5 MILLION TO 8 MILLION A YEAR IN STAFF COSTS THIS WOULD ALMOST CERTAINLY INCLUDE SOME LAYOFFS I REALLY THINK THIS IS IN THE LONGTERM STRATEGIC INTEREST OF BOTH EXCHANGES MR RAPPAPORT SAYS WHAT HE MUST OVERCOME WHEN HE BEGINS TO SELL HIS DEAL TO NYMEX AND COMEX TRADERS IN THE NEXT COUPLE OF MONTHS ARE HISTORIC TENSIONS BETWEEN THE TWO EXCHANGES AND PERCEPTIONS AMONG SOME TRADERS AT HIS EXCHANGE THAT NYMEX IS OFFERING COMEX TOO MUCH MONEY THE BOTTOM LINE IN MANY TRADERS' MINDS IS WHAT ARE WE PAYING 35 MILLION FOR' SAYS A NYMEX CRUDEOILFUTURES TRADER PEOPLE AREN'T DEADSET AGAINST IT BUT THEY WANT TO KNOW WHAT THEY'LL GET FOR THE MONEY 9311290042 931129 FBI ARRESTS FUGITIVE BAZARIAN OKLAHOMA CITY THE FEDERAL BUREAU OF INVESTIGATION SAID IT ARRESTED CONVICTED BANK SWINDLER CHARLES J BAZARIAN WHO FAILED TO RETURN TO JAIL SEPT 4 AFTER RECEIVING A ONEDAY PASS TO ATTEND HIS DAUGHTER'S WEDDING MR BAZARIAN 57 YEARS OLD WAS ARRESTED IN A SAN JUAN PUERTO RICO MOVIE THEATER ON FRIDAY AND WAS CHARGED WITH ESCAPE ACCORDING TO BOB A RICKS SPECIAL AGENT IN CHARGE OF THE OKLAHOMA CITY FBI OFFICE MR BAZARIAN WILL APPEAR BEFORE A US MAGISTRATE TODAY MR BAZARIAN SERVED THREEANDAHALF YEARS IN FEDERAL PRISON ON CHARGES OF DEFRAUDING SAVINGS AND LOAN INSTITUTIONS IN FLORIDA CALIFORNIA AND OKLAHOMA HE WAS RELEASED JULY 7 ON PAROLE BUT ORDERED TO RETURN TO PRISON AUG 31 FOR PAROLE VIOLATIONS THE FBI SAID 9311290041 931129 FORMER NAVAL BASE IN THE PHILIPPINES IS AWASH IN SHOPPERS SEEKING BARGAINS BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL SUBIC BAY PHILIPPINES BUSINESS INVESTORS HAVE BEEN SLOW IN COMING BUT SHOPPERS ARE FLOCKING TO THIS FORMER US NAVAL BASE AND LOCAL AUTHORITIES HOPE TOURISTS WILL SOON FOLLOW EACH WEEKEND THOUSANDS OF PEOPLE FORM A LONG LINE AROUND ONE OF THE SUBIC BAY METROPOLITAN AUTHORITY'S ADMINISTRATION BUILDINGS TO REGISTER FOR THE RIGHT TO BUY GOODS AT A HANDFUL OF STORES ON THE FORMER BASE THE LURE ONCE THEY WALK ACROSS A SHORT BRIDGE FROM NEIGHBORING OLONGAPO CITY AND THROUGH THE GATES OF SUBIC THEY'RE IN DUTYFREE LAND IT'S JUST TO SHOP AND SEE THE CASINO IS HOW ARCHITECT JOSEPH PAZ EXPLAINS HIS HAVING MADE THE THREEHOUR DRIVE FROM MANILA ONE RECENT SUNDAY GOODS HERE ARE 15 TO 20 CHEAPER THAN ELSEWHERE IN THE PHILIPPINES EXCEPT AT THE GOVERNMENT'S OWN WILDLY SUCCESSFUL DUTY FREE PHILIPPINES CHAIN OF STORES BECAUSE THEY ARE EXEMPT FROM THE HIGH TARIFFS THAT MANILA LEVIES ON MOST IMPORTED GOODS MANILA DECLARED SUBIC A FREE PORT TO ALLOW AN UNIMPEDED FLOW OF IMPORTS AND EXPORTS THROUGH THE ZONE FILIPINOS ARE ALLOWED TO BUY AND BRING OUT 200 OF GOODS FROM SUBIC EACH YEAR BUT POLICING OF THE LIMITS ISN'T STRICT ACCORDING TO THE SUBIC AUTHORITY MORE THAN 100000 VISITORS FLOCKED TO SUBIC LAST MONTH ALONE SUSAN MORA GENERAL MANAGER OF INTERNATIONAL FREEPORT TRADERS INC WHICH OPERATES A COMBINED SUPERMARKET AND DEPARTMENT STORE AT SUBIC ESTIMATES THAT DESPITE A LACK OF ADVERTISING HER 6000SQUAREMETER STORE PULLS IN AN AVERAGE OF 1500 PEOPLE A DAY AND MORE ON WEEKENDS ACROSS THE CROWDED PARKING LOT OUTSIDE IS A TINY STORE THAT SPECIALIZES IN TOYS AND IMPORTED MEAT NEXT TO THAT CONSTRUCTION IS UNDER WAY ON A BUILDING THAT WILL HOUSE A SPORTINGGOODS STORE THE US NAVY VACATED ITS HUGE INSTALLATION HERE A YEAR AGO AND THE CONVERSION OF SUBIC ONCE AMERICA'S LARGEST OVERSEAS MILITARY INSTALLATION TO PRIVATESECTOR USE HAS BEEN AN URGENT TASK FOR PHILIPPINES OFFICIALS DESPITE A FLAT 5 TAX ON GROSS CORPORATE INCOME AND THE ADVANTAGES OF A FINE NATURAL HABOR AN AIRPORT DOCKS WAREHOUSES A GOLF COURSE AND HOUSING SUBIC SO FAR HAS DRAWN ONLY A HANDFUL OF INVESTORS AND THOUGH THE FLOW OF INVESTMENT NOW TOTALING MORE THAN 350 MILLION HAS INCREASED IN RECENT MONTHS JOBS FOR THE 32000 FILIPINOS THROWN OUT OF WORK BY THE US PULLOUT REMAIN SCARCE THE DUTYFREE IDEA HAS BEEN ONE BRIGHT SPOT THOUGH NO SALES FIGURES ARE AVAILABLE ON SUBIC BUT THE PHENOMENAL GROWTH IN RECENT YEARS OF DUTY FREE PHILIPPINES WHICH SELLS MAINLY TO TRAVELERS ARRIVING FROM OVERSEAS SUGGESTS THAT THE CONVERTED BASE CAN TAP A HUGE MARKET LET US TALK OF MILLIONS OF FILIPINOS MS MORA SAYS OF HER POTENTIAL CLIENTELE MEANWHILE SUBIC'S TOURISM DEPARTMENT HOPES IT CAN PERSUADE SHOPPERS TO COOL THEIR BUYING FRENZY LONG ENOUGH TO SAVOR OTHER ACTIVITIES OFFERED AT THE BASE TOURISM IS ONE OF OUR PRIORITIES BECAUSE 75 OF OUR FACILITIES ARE FOR TOURISM SAYS ROSALINDA LIGSAY A DIRECTOR OF THE SUBIC AUTHORITY AND HEAD OF ITS TOURISM OFFICE IT HAS EVERYTHING HERE FOR A LITTLE AMERICA INDEED SUBIC OFFERS BEACHES GOLF SCUBA DIVING JUNGLE HIKES CAMPING HORSEBACK RIDING SWIMMING AND BOWLING HOTELS AND A CASINO ARE MORE RECENT ADDITIONS AND A KARAOKE LOUNGE IS ON THE DRAWING BOARD BUSINESS HOWEVER IS SLOW TOURISM RECEIPTS FROM THE HOTEL THE AUTHORITY RUNS AS WELL AS FEES FOR LEISURE ACTIVITIES ACCOUNT FOR JUST 10 OF SUBIC'S INCOME THIS DOESN'T INCLUDE RENTAL INCOME FROM TWO PRIVATE HOTELS TOUR OPERATORS HAVE ONLY BEGUN TO DISCOVER SUBIC OFFERING WEEKEND AND FOURDAY PACKAGES ONE COMPANY SAYS IT'S STILL TOO EARLY TO ASSESS PUBLIC RECEPTION THE TWO PRIVATE HOTELS SUBIC INTERNATIONAL HOTEL RUN BY THE LOCAL SUBIC INTERNATIONAL HOTEL CORP AND SUBIC BAY RESORT AND CASINO RUN BY MALAYSIA'S GENTING INTERNATIONAL LTD SAY OCCUPANCY AVERAGES ABOUT 25 ON WEEKDAYS AND 75 ON WEEKENDS BOTH OFFER THREESTAR ROOMS AT ABOUT 50 A NIGHT SUBIC BAY RESORT AND CASINO AIMS TO DRAW GAMBLERS FROM HONG KONG TAIWAN AND MALAYSIA AS WELL AS THE PHILIPPINES THESE PEOPLE GET TIRED AFTER A WHILE THEY WANT TO EXPLORE A NEW MARKET SAYS LEON JUNG THE RESORT'S CHIEF EXECUTIVE OFFICER GENTING ALSO PLANS TO BUILD A 400ROOM FIVESTAR RESORT INCLUDING ITS OWN GOLF COURSE AT SUBIC SUBIC'S EXISTING TOURISM FACILITIES MR JUNG SAYS ARE NOT READY AT THIS STAGE IT IS NOT WELL ENOUGH DEVELOPED PEOPLE WILL COME OUT OF CURIOSITY AND FOR THE SHOPPING BUT THEN THEY WON'T COME BACK HE ADDS OTHER HOTELIERS AND SUBIC AUTHORITIES AGREE THEY SAY THE BASE NEEDS MORE RESTAURANTS AND A CONVENTION CENTER TO BE ABLE TO PULL IN CROWDS SUBIC OFFICIALS WOULD ALSO WELCOME THE ESTABLISHMENT OF A THEME PARK OR TWO IN THE MEANTIME TOURISMRELATED BUSINESSES HERE ARE TRYING TO UPGRADE OPERATIONS BRIAN HOMAN AN AUSTRALIAN SALVAGE DIVER WHO OPERATES SUBIC'S ONLY DIVING FACILITY IS IN PARTNERSHIP WITH AN AMERICAN AND TWO FILIPINOS TO OFFER OTHER WATERSPORTS THEY ALSO ARE AWAITING SHIPMENTS OF GOODS TO START A BUSINESS IN A SEASIDE HUT DUTYFREE SALES OF DIVING EQUIPMENT 9311290040 931129 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR MORTGAGE RATES MAY BE CREEPING BACK UP BUT HOUSING AFFORDABILITY IS STILL THE BEST IN 20 YEARS AND HOME BUILDERS EXPECT STRONG SALES OVER THE NEXT SIX MONTHS THE AVERAGE RATE ON 30YEAR MORTGAGES CONTINUED A MONTHLONG CLIMB LAST WEEK HITTING 731 AFTER BOTTOMING OUT AT A 25YEAR LOW IN SEPTEMBER AND OCTOBER THE LOW RATES HELPED BOOST NEWHOME SALES TO A 762000 ANNUAL RATE IN SEPTEMBER THE HIGHEST LEVEL IN NEARLY SEVEN YEARS WHILE THAT LEVEL PROBABLY WASN'T REPEATED IN OCTOBER NEWHOME SALES REMAIN STRONG SAID DAVID COHEN ECONOMIST AT MMS INTERNATIONAL IN SAN FRANCISCO NEWHOME SALES PROBABLY MODERATED AT ABOUT A 700000 RATE IN OCTOBER EXCLUDING SEPTEMBER THAT'S STILL THE BEST IN SOME TIME HE SAID MR COHEN NOTED THAT HOUSING STARTS HAVE SURGED FOR SEVERAL MONTHS IN A ROW AND EXISTINGHOME SALES ALSO ARE UP CLEARLY THE HOUSING MARKET HAS PICKED UP IN RECENT MONTHS HE SAID MORTGAGE RATES ARE UP A LITTLE BUT THEY STILL ARE ATTRACTIVE THE NATIONAL ASSOCIATION OF REALTORS' HOUSINGAFFORDABILITY INDEX ROSE IN THE THIRD QUARTER TO ITS HIGHEST LEVEL SINCE THE FOURTH QUARTER OF 1973 AND A NATIONAL ASSOCIATION OF HOME BUILDERS SURVEY OF MEMBERS IN NOVEMBER SHOWED THE OUTLOOK FOR SALES DURING THE NEXT SIX MONTHS IS THE BEST SINCE 1985 9311290039 931129 MARKETING & MEDIA ADVERTISING IS THERE LIFE AFTER MICHAEL JORDAN MOST NBA ADVERTISERS THINK SO BY KEVIN GOLDMAN WHEN MICHAEL JORDAN OF THE CHICAGO BULLS RETIRED AS THE MARQUEE SUPERSTAR OF THE NATIONAL BASKETBALL ASSOCIATION AN UNSETTLING QUESTION AROSE AS TO WHETHER THE UNEXPECTED MOVE WOULD MEAN A LOSS OF INTEREST FROM FANS AND ADVERTISERS THREE WEEKS AFTER ITS 199394 SEASON BEGAN THE NBA CAN REST EASY OF ITS ROSTER OF LEAGUE SPONSORS ONLY ONE THE BIG G CEREAL DIVISION OF GENERAL MILLS MAKER OF SUCH BREAKFAST FARE AS WHEATIES AND CHEERIOS DIDN'T RENEW ITS LEAGUE SPONSORSHIP AFTER ITS THREEYEAR PACT EXPIRED THE MOVE BY GENERAL MILLS WAS HIGHLY UNUSUAL BECAUSE THE NBA IS KNOWN AS PERHAPS THE SHREWDEST MARKETING PARTNER IN SPORTS UNDER ITS COMMISSIONER DAVID STERN THE NBA SIGNS MAJOR LEAGUE ADVERTISERS TO COSTLY CONTRACTS USUALLY WITH NO HESITATION FROM SPONSORS DAVID SCHREFF VICE PRESIDENT AND GENERAL MANAGER OF THE NBA MARKETING GROUP SAYS THE GENERAL MILLS DEPARTURE WAS A MUTUAL DECISION A SPOKESWOMAN FOR GENERAL MILLS SAYS SHE IS UNABLE TO PROVIDE DETAILS ABOUT THE SPLIT THE NBA'S REMAINING ROSTER OF 19 LEAGUE SPONSORS INCLUDES AMERICAN TELEPHONE & TELEGRAPH COCACOLA MCDONALD'S PHILIP MORRIS'S MILLER BREWING AND INTERNATIONAL BUSINESS MACHINES AND THIS YEAR THE NBA SIGNED DEALS WITH NEW SPONSORS CASTROL THE AUTOMOTIVE OIL MANUFACTURER AND STOUFFER FROZEN FOODS A SUBSIDIARY OF NESTLE SA WHAT'S MORE THE NBA IS EXPECTED SHORTLY TO FINALIZE EXPANDED GLOBAL DEALS WITH COCACOLA AND MCDONALD'S SPONSORING NBA EVENTS ABROAD OFFICIALS CLOSE TO THE PROCESS SAY SPOKESMEN FOR THE NBA AND THE COMPANIES DECLINE COMMENT ON ANY GLOBAL DEALS BUT JACKIE WOODWARD SENIOR MANAGER FOR SPORTS MARKETING AT MCDONALD'S SAYS WE'RE WITH THE NBA FOR THE LONG HAUL OUR CUSTOMERS ARE NBA CUSTOMERS NOT ONLY IN THE US BUT ALL OVER THE WORLD THE NBA APPEALS TO ADVERTISERS BECAUSE BASKETBALL ATTRACTS MEN AND WOMEN 18 TO 34 YEARS OLD AN ESPECIALLY DESIRABLE DEMOGRAPHIC ON MADISON AVENUE LEAGUE SPONSORS NOT ONLY ADVERTISE DURING THE TELEVISED GAMES BUT THEY ALSO DEVELOP NATIONAL NBATHEME PROMOTIONS SUCH AS MCDONALD'S NBA FANTASY PACKS INSTANTWIN PROMOTIONS AND NBA EVENT MARKETING SUCH AS SCHICK'S SPONSORSHIP OF THE FIRST ROOKIE GAME DURING THE LEAGUE'S ALLSTAR WEEKEND THIS FEBRUARY THERE'S GOOD NEWS FOR THOSE SPONSORS THREE WEEKS INTO THE SEASON THE NBA REMAINS A HOT TELEVISION PROPERTY THE GAMES TELEVISED ON TURNER BROADCASTING SYSTEM'S TNT AVERAGED A 21 RATING A 24 INCREASE OVER THE 17 ACHIEVED IN THE FIRST THREE WEEKS OF LAST SEASON NBA GAMES WON'T BEGIN ON BROADCAST TELEVISION WITH GENERAL ELECTRIC'S NBC NETWORK UNTIL CHRISTMAS DAY AN NBA TRADITION TURNER SPORTS RECENTLY SIGNED A NEW FOURYEAR DEAL WITH THE NBA FOR 352 MILLION A HEALTHY 28 INCREASE OVER THE PREVIOUS YEAR'S 275 MILLION AND NBC SIGNED A 725 MILLION FOURYEAR PACT A 25 INCREASE OVER THE PREVIOUS CONTRACT OF 600 MILLION THE NBA SERVES AS A BROKER TO DEALS BETWEEN NETWORKS AND ADVERTISERS FOR INSTANCE THE NBA PLAYED AN IMPORTANT ROLE IN GETTING MILLER BREWING TO PAY 125 MILLION TO NBC OVER FOUR YEARS AS THE PRINCIPAL BEER SPONSOR BUSINESS IS BETTER THAN EVER SAYS MR SCHREFF OF THE NBA MARKETING GROUP WE CONTINUE TO ADD WORLDCLASS COMPANIES TO OUR DELIBERATELY SMALL ROSTER OF SPONSORS ASKED TO ELABORATE ON GENERAL MILLS' EXIT MR SCHREFF SAYS WE WERE PLEASED WITH SOME OF THE ACCOMPLISHMENTS OF THE RELATIONSHIPS WITH SPONSORS BUT IT WAS TIME TO MOVE ON SOME AREN'T AS ACTIVE AS OTHERS AS A MARKETING PARTNER WHILE ADVERTISERS AND THE NBA SAY THE LOSS OF MR JORDAN IS SIGNIFICANT THEY POINT TO OTHER STARS IN THE WINGS INCLUDING SHAWN BRADLEY OF THE PHILADELPHIA 76ERS BOBBY HURLEY OF THE SACRAMENTO KINGS AND CHRIS WEBBER OF THE GOLDEN STATE WARRIORS IT DOESN'T SEEM TO BOTHER COCACOLA THAT PERHAPS THE BIGGEST NBA STAR SHAQUILLE O'NEAL FEATURES PROMINENTLY IN COMMERCIALS FOR COKE'S ARCHRIVAL PEPSI WE HAVE RENEWABLE RESOURCES WITH THE NBA DRAFT EVERY YEAR SAYS MR SCHREFF PLAYERS COME WITH THEIR OWN LEVEL OF FAME AND MARKETABILITY AND THAT IS WHY OUR SPONSORS REMAIN WITH US ADDS TODD BURNETTE STAFF MANAGER OF AT&T SPONSORSHIPS AND PROMOTIONS THERE IS MORE TO THE NBA THAN JUST MICHAEL JORDAN AMERICAN EXPRESS CO HAS SIGNED UP TO SPONSOR A NEW INTERACTIVE TRAVEL GAME ON THE NTN HOSPITALITY NETWORK NTN COMMUNICATIONS INC CARLSBAD CALIF PROVIDES INTERACTIVE SPORTS AND ENTERTAINMENT GAMES SUCH AS QB1 FOOTBALL AND SPOTLIGHT ENTERTAINMENT TRIVIA TO RESTAURANTS AND BARS THE GAMES PIT PATRONS OF ONE WATERING HOLE AGAINST THOSE OF OTHER RESTAURANTS AND BARS NTN SAYS 1300 SUCH ESTABLISHMENTS SUBSCRIBE IN NORTH AMERICA AMERICAN EXPRESS'S TRAVEL RELATED SERVICES UNIT WHICH MARKETS THE GREEN CARD IS SPONSORING PASSPORT A NEW TRAVEL TRIVIA GAME TERMS COULDN'T BE DETERMINED AMERICAN EXPRESS WILL RECEIVE SEVERAL 15SECOND PLUGS FOR THE GREEN CARD PLUS ONSCREEN IDENTIFICATION INCLUDED ON THE SCOREBOARD 9311290038 931129 LEISURE & ARTS BOOKSHELF ONE WOMAN'S WAR AGAINST APARTHEID BY CHESTER A CROCKER IN NO UNCERTAIN TERMS KNOPF 300 PAGES 25 IS A SELFPORTRAIT BY THE WOMAN WHO DEFINED THE TERMS OF THE WHITE POLITICAL DEBATE THROUGH MOST OF THE APARTHEID ERA IN IT HELEN SUZMAN DESCRIBES HER LONG WAR AGAINST THE IDEAS AND POLICIES OF THE AFRIKANER NATIONALISTS WHO SOUGHT TO MONOPOLIZE SOUTH AFRICA'S OFFICIAL POLITICS FROM 1948 WHEN THEY CAME TO POWER TO THE EARLY '90S WHEN LATTERDAY NATIONALIST FW DE KLERK AND THE BLACK LEADER NELSON MANDELA SET THEM ON A NEW COURSE MS SUZMAN LOST MANY BATTLES DURING THE 36 YEARS SHE SERVED IN THE SOUTH AFRICAN PARLIAMENT 13 AS ITS SOLE LIBERAL VOICE BUT SHE WON THE WAR OF IDEAS AND CAN BE FORGIVEN FOR ENJOYING BITTERSWEET MOMENTS AS MR DE KLERK A PRAGMATIC INTELLIGENT MAN ADOPTED HER PARTY'S POSITIONS ON ISSUE AFTER ISSUE NOR WAS THIS A ONEDIMENSIONAL VICTORY OF WESTERN LIBERALISM OVER AFRIKANERSTYLE RACIST DOMINATION HERS WAS A VICTORY FOR WESTERN LIBERAL IDEAS AGAINST THEIR ENEMIES OF WHATEVER RACE AND TRIBE AS THE AFRICAN NATIONAL CONGRESS'S OWN GRADUAL METAMORPHOSIS MAKES CLEAR NO ONE FOUGHT HARDER THAN MS SUZMAN TO KEEP WESTERN LIBERALISM ALIVE AND IN SO DOING SHE KEPT HOPE ALIVE DURING THE DARK YEARS WITH THE SUPPORT OF A TINY STAFF SHE DEFENDED THE RULE OF LAW CHAMPIONED THE RIGHTS OF PRISONERS AND BATTLED THE PASS LAWS AND FORCED REMOVALS MS SUZMAN'S MEMOIR IS CRISP AND READABLE THERE ARE CAPTIVATING TALES OF HER EXPERIENCE IN THE OVERWHELMINGLY ANGLOSAXON PROTESTANT MALE BASTIONS OF WHITE SOUTH AFRICAN POLITICS NO GREAT WELCOME WAS EXTENDED TO THIS JEWISH PROGRESSIVE BORN OF LITHUANIAN IMMIGRANTS WITH LINKS TO SOUTH AFRICA'S ENGLISHSPEAKING ELITE AND WAY TOO MANY BLACK AND FOREIGN FRIENDS ATTACKED FOR GOING TO NEW YORK TO RECEIVE A HUMANRIGHTS AWARD FROM PEOPLE WHO ARE SOUTH AFRICA'S ENEMIES SHE REJOINED YOU LEAVE US WITH NO FRIENDS SO I HAVE TO ACCEPT AWARDS FROM OUR ENEMIES PW BOTHA PRIME MINISTER AND THEN PRESIDENT FROM 1978 TO 1989 WAS A PARTICULAR BETE NOIR IF MY WIFE CHATTERED LIKE THAT HON MEMBER I WOULD KNOW WHAT TO DO WITH HER HE ONCE SNIPED BUT SHE SNIPED BACK I'M NOT FRIGHTENED OF YOU SHE REMEMBERS SAYING ON ANOTHER OCCASION YOU HAVE BEEN TRYING TO BULLY ME FOR TWENTYEIGHT YEARS AND YOU HAVE NOT SUCCEEDED THE AUTHOR DESCRIBES HERSELF CONVINCINGLY AS A SMALL CHEEKY FEMALE WITH A SHARP TONGUE BUT MS SUZMAN'S VERBAL FLOURISHES WERE BY NO MEANS RESERVED FOR AFRIKANER POLITICIANS OR THEIR LARGE DOCILE WIVES BROUGHT UP IN CALVINIST FASHION TO BE RESPECTFUL TO THEIR PARENTS AND TO THEIR HUSBANDS THE PRESIDENT OF A WOMEN'S FRONTIERREMEMBRANCE SOCIETY KNOWN AS THE KAPPIE KOMMANDO ONCE WROTE MS SUZMAN PROUDLY RECALLING THAT HER ANCESTORS HAD CARRIED THE BIBLE TO THE NATIVES ON THE FRONTIER AND ASKED SNIDELY WHAT MS SUZMAN'S ANCESTORS HAD DONE HER REPLY MY ANCESTORS WERE BUSY WRITING THE BIBLE MS SUZMAN'S BOOK IS ORGANIZED THEMATICALLY AS WELL AS CHRONOLOGICALLY OBLIGING THE READER TO KEEP IN VIEW THE BROAD OUTLINES OF A 40YEAR PERIOD OF DRAMATIC CHANGE THERE ARE MOMENTS WHEN HER ACCOUNT OF PERSONAL INTERVENTIONS WOULD HAVE BEEN STRENGTHENED WITH MORE DEVELOPMENT OF THE BACKGROUND POLITICAL CONTEXT AND SHE SHOWS A SURPRISING NEED TO DETAIL THE AWARDS LETTERS AND HONORARY DEGREES 22 SHE RECEIVED ACROSS THE SPECTRUM OF POLITICS AND RACE PERHAPS THIS IS BECAUSE OF THE EMBITTERING EXPERIENCE OF THE LATE '80S WHEN KEY PROGRESSIVE ALLIES ABANDONED THE WHITE LEGISLATIVE FRAY FOR INVOLVEMENT IN EXTRAPARLIAMENTARY POLITICS WITH BLACK GROUPS LEADING HER PARTY TO LOSE SEATS AND ITS ROLE OF OFFICIAL OPPOSITION IN 1987 AS TOWNSHIPS BURNED AND TEN OF THOUSANDS DIED OR WERE DETAINED QUESTIONS AROSE ABOUT THE RELEVANCE OF MS SUZMAN'S MAGNIFICENT BATTLE AGAINST APARTHEID TO QUOTE MR MANDELA'S FOREWORD TO THE BOOK EXTREMISTS DENIED HER THE RIGHT TO SPEAK AT HER OWN ALMA MATER AND EXCORIATED HER PRINCIPLED OPPOSITION TO ECONOMIC SANCTIONS SHE RIGHTLY FORESAW THESE FIREBRANDS WOULD NOT TOPPLE BOTHA BUT WOULD INCREASE POVERTY VIOLENCE AND CRIME AMONG THE BLACK POOR YET HER PLACE IN HISTORY IS GUARANTEED MANY TIMES OVER NOT ONLY BY HER COURAGE AND DOGGED DEFENSE OF WESTERN VALUES BUT BY THE NUMBER OF TIMES SHE WAS RIGHT WHEN SHE WARNED THE GOVERNMENT IN THE '60S THAT ITS URBAN BLACK POLICY WOULD REAP THE MOST TERRIBLE CONDITIONS OF CRIME AND DELINQUENCY WHEN SHE RECOGNIZED THE FUNDAMENTAL INCOMPATIBILITY BETWEEN APARTHEID AND RATIONAL ECONOMICS CONCLUDING HER EPILOGUE IN LATE 1992 SHE UNDERSCORES THE RISK THAT YEARS OF URBAN UNREST AND ECONOMIC DECLINE COULD CREATE AN UNGOVERNABLE COUNTRY BUT HER FINAL WORDS EXPRESS THE BELIEF HER COUNTRY CAN BECOME THE WORKSHOP OF THE AFRICAN CONTINENT EXTREMISTS MAY OWN THE PRESENT BUT THE FUTURE BELONGS TO US THE MODERATES OF ALL RACES THIS LOOKS MORE CONVINCING TODAY WE CAN ONLY HOPE THAT ONCE AGAIN HELEN SUZMAN IS RIGHT MR CROCKER WAS US ASSISTANT SECRETARY OF STATE FOR AFRICAN AFFAIRS 19811989 HIS MEMOIR HIGH NOON IN SOUTHERN AFRICA NORTON APPEARED EARLIER THIS YEAR 9311290037 931129 BUSINESS BRIEF NOSTALGIA NETWORK INC CONCEPT SUSPENDS ITS EFFORT TO PURCHASE COMMON SHARES CONCEPT COMMUNICATIONS INC WHICH ALREADY OWNS A LARGE BLOCK OF SHARES IN NOSTALGIA NETWORK INC SAID IT WAS SUSPENDING PURCHASE OF ADDITIONAL SHARES CONCEPT AN AFFILIATE OF THE UNIFICATION CHURCH SAID IT SUSPENDED ITS PURCHASES AFTER ACQUIRING 491500 SHARES OF NOSTALGIA BETWEEN NOV 12 AND NOV 19 BEFORE RECENT PURCHASES CONCEPT'S STAKE WAS ESTIMATED AT 29 OF NOSTALGIA'S 144 MILLION SHARES OUTSTANDING INTERNATIONAL FAMILY ENTERTAINMENT INC A VIRGINIA BEACH VA MEDIA COMPANY FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON RECENTLY BEGAN A TENDER OFFER TO BUY NOSTALGIA FOR 296 MILLION IT OFFERED 2 FOR EACH NOSTALGIA NETWORK COMMON SHARE AND 200 FOR EACH OF THE 3875 SHARES OF NOSTALGIA PREFERRED STOCK OUTSTANDING NOSTALGIA LOS ANGELES IS A BASICCABLE CHANNEL WITH PROGRAMS AIMED AT VIEWERS 45 AND OVER 9311290036 931129 THE OUTLOOK US AND JAPAN ENGAGE IN SOME MORE LECTURES BY DAVID WESSEL WASHINGTON PRESIDENTS AND TREASURY SECRETARIES COME AND GO THE DOLLAR GOES UP AND DOWN INTEREST RATES RISE AND FALL BUT THE US KEEPS GIVING JAPAN THE SAME ECONOMICS 101 LECTURE WITH THE WORLD ECONOMY IN A SLUMP THE LECTURE BEGINS JAPAN IS IN A UNIQUE POSITION TO HELP PULL IT OUT THE US AND GERMANY CAN'T BECAUSE THEIR BUDGET DEFICITS ARE SO LARGE BUT JAPAN HAS LITTLE GOVERNMENT DEBT BY INTERNATIONAL STANDARDS NO INFLATION AND A HUGE TRADE SURPLUS SO DEPENDING ON PRECISELY WHEN THE LECTURE IS BEING DELIVERED THE US TELLS JAPAN TO CUT INTEREST RATES INCREASE PUBLICWORKS SPENDING OR REDUCE TAXES JAPAN'S RESPONSE HAS BECOME PREDICTABLE FIRST IT RESISTS THEN IT SIGNALS THAT SOMETHING MAY BE IN THE WORKS AND FINALLY OFTEN DAYS BEFORE SOME HIGHPROFILE GATHERING OF WORLD LEADERS JAPAN TAKES THE ADVICE BUT USUALLY DOES LESS THAN THE REST OF THE WORLD ADVISES A FEW MONTHS LATER IT BECOMES CLEAR THAT THE JAPANESE ECONOMY IS DOING WORSE THAN THE OFFICIAL PREDICTION AND THE CYCLE BEGINS AGAIN RIGHT NOW JAPAN IS AT THE SIGNALING STAGE EVEN THOUGH ITS ECONOMY HAS YET TO BENEFIT FROM THE LAST PUBLICWORKS PROGRAM ECONOMISTS IN TOKYO SPECULATE THAT THE HOSOKAWA GOVERNMENT SOON WILL PROPOSE AN INCOMETAX CUT OF AT LEAST FIVE TRILLION YEN AND PERHAPS AS MUCH AS 10 TRILLION THAT ISN'T SMALL CHANGE A FIVETRILLIONYEN TAX CUT AMOUNTS TO 1 2/3 OF DISPOSABLE PERSONAL INCOME AN EQUIVALENT US TAX CUT WOULD RUN 80 BILLION BUT THE INCOMETAX CUT PROBABLY WILL BE PAIRED WITH A BIG INCREASE IN THE NATIONAL CONSUMPTION TAX THAT COULD TAKE EFFECT A YEAR OR TWO LATER THAT IS NOT WHAT THE US HAS IN MIND WE'RE LOOKING FOR THE KENNEDYJOHNSON TAX CUT NOT THE FORD REBATE SAYS ONE TOP US ECONOMIC OFFICIAL REFERRING TO PRESIDENT FORD'S ONETIME 200AFAMILY TAX CUT OF COURSE IT'S ALWAYS EASY FOR THE US WHICH HAS HAD SOME NOTABLE ECONOMICPOLICY FAILINGS OF ITS OWN TO TELL OTHERS WHAT TO DO BUT EVEN SOME ECONOMISTS WHO CRITICIZE MR CLINTON'S DOMESTIC POLICIES AGREE WITH HIS PRESCRIPTION FOR JAPAN JAPAN'S TOP PRIORITY SHOULD BE TO AVOID A SERIOUS DEPRESSION AND THAT MEANS CUT TAXES LOWER INTEREST RATES DO WHATEVER YOU HAVE TO DO SAYS JOHN MAKIN OF THE CONSERVATIVE AMERICAN ENTERPRISE INSTITUTE AS IT STRUGGLES WITH ITS WORST DOWNTURN SINCE WORLD WAR II JAPAN'S ECONOMY COULD USE SOME HELP SALOMON BROTHERS' TOKYO ECONOMIST ROBERT ALAN FELDMAN ESTIMATES THAT IT WILL CONTRACT 04 THIS YEAR AND EVEN WITH A QUICK TAX CUT WILL GROW ONLY 2 NEXT YEAR AND HE IS ON THE OPTIMISTIC SIDE THE JAPANESE STOCK MARKET HAS FALLEN BY MORE THAN 20 IN THE PAST FOUR WEEKS AS THE PROFIT OUTLOOK WORSENS I TALK TO A LOT OF JAPANESE ECONOMISTS SAYS NATHANIEL THAYER A US POLITICAL SCIENTIST IN JAPAN THEY COME IN ALL FLAVORS AS THEY DO IN THE US BUT ALL OF THEM ARE PRETTY MUCH AGREED THAT THINGS AREN'T GOING THE WAY THEY SHOULD EVEN THE ECONOMISTS AT THE INTERNATIONAL MONETARY FUND WHO RARELY SEE FISCAL POLICY THAT IS TOO AUSTERE FOR THEIR TASTES SEEM TO BE ON BOARD GAUGING JAPANESE FISCAL POLICY BY ESTIMATING WHAT CURRENT POLICIES WOULD PRODUCE IF THE ECONOMY WERE NEAR FULL EMPLOYMENT THE IMF FINDS THAT JAPAN IS RUNNING WHAT IS KNOWN AS A STRUCTURAL SURPLUS THAT WILL PROBABLY GROW IN THE NEXT FEW YEARS IF EVER THERE WAS A CASE FOR KEYNESIANSTYLE TAX CUTS TO BOOST HOUSEHOLD SPENDING THIS SEEMS TO BE IT BUT THE HOSOKAWA GOVERNMENT IS PREOCCUPIED WITH ITS POLITICALREFORM INITIATIVE WHICH HAS CLEARED THE LOWER HOUSE OF PARLIAMENT BUT WON'T GET TO THE UPPER HOUSE UNTIL NEXT MONTH IT'S OUR NAFTA JAPANESE OFFICIALS TELL THEIR US COUNTERPARTS THE CURRENT IRONY SAYS DAVID HALE CHIEF ECONOMIST AT KEMPER FINANCIAL SERVICES IS THAT JAPAN IS GOING THROUGH THE SOCIAL AND POLITICAL REVOLUTION THAT CRITICS HAVE ALWAYS WANTED BUT THIS SLOWS DOWN DECISIONMAKING ON THE MACROECONOMIC CHANGES THAT THE CLINTON ADMINISTRATION WANTS ONE BIG OBSTACLE THE DEFICITPHOBES IN THE MINISTRY OF FINANCE WHO ARE STILL FIGHTING THE LAST FISCAL WAR NAMELY THE DEFICITS JAPAN INCURRED IN THE RECESSIONS OF THE 1970S TO THESE POWERFUL CIVIL SERVANTS DEFICITS ARE TO BE AVOIDED EVEN IN TIMES OF RECESSION DESPITE THE SHORTRUN ECONOMIC WEAKNESS THE MINISTRY ARGUES JAPAN MUST RUN BUDGET SURPLUSES TO BUILD THE WEALTH IT NEEDS TO CARE FOR ITS RAPIDLY AGING POPULATION LAWRENCE SUMMERS USED TO DERIDE THIS AS HOOVERITE MADNESS BEFORE HIS APPOINTMENT AS UNDERSECRETARY OF THE TREASURY TEMPERED HIS PUBLIC UTTERANCES THE TREASURY'S LECTURE TO JAPAN IS CHANGING SUBTLY IT NOW RELIES LESS ON A PLEA THAT JAPAN SHOULD ACT FOR THE GOOD OF THE REST OF THE WORLD AND MORE ON THE ARGUMENT THAT JAPAN NEEDS TO AGGRESSIVELY STIMULATE ITS ECONOMY TO BE SURE IT DOESN'T IMPLODE WHEN IT COMES TO NATIONAL ECONOMIC POLICIES SELFINTEREST IS MORE COMPELLING THAN ALTRUISM 9311290035 931129 BUSINESS BRIEF IMPERIAL OIL LTD PILOT PROJECT IS PLANNED TO ENHANCE OLD OIL FIELDS IMPERIAL OIL LTD TORONTO ANNOUNCED A 10 MILLION CANADIAN DOLLAR US75 MILLION PILOT PROJECT AIMED AT GIVING OLD OIL FIELDS A NEW LEASE ON LIFE THE COMPANY SAID THE PILOT COULD LEAD TO A C250 MILLION 1882 MILLION COMMERCIAL OIL PROJECT IN FOUR YEARS THE PETROLEUM COMPANY WHICH IS 696OWNED BY EXXON CORP SAID WORK ON ITS ENHANCEDOILRECOVERY PILOT IN NORTHEASTERN BRITISH COLUMBIA WILL START EARLY NEXT YEAR BUT A SPOKESMAN FOR IMPERIAL SAID THAT THE PILOT PROJECT WILL TAKE ABOUT FOUR YEARS TO COMPLETE AND THAT THE COMPANY WILL ONLY PROCEED TO A COMMERCIAL PROJECT IF THE PILOT IS A SUCCESS NONETHELESS IMPERIAL SAID THE TECHNOLOGY IT PLANS TO TEST COULD DOUBLE OIL PRODUCTION FROM ITS 38YEAROLD BOUNDARY LAKE OIL FIELD FROM CURRENT LEVELS OF ABOUT 5100 BARRELS A DAY THE VENERABLE OIL FIELD STILL ACCOUNTS FOR ABOUT A THIRD OF BRITISH COLUMBIA'S OIL OUTPUT FROM CONVENTIONAL SOURCES IMPERIAL ESTIMATES THE NEW TECHNOLOGY COULD BOOST THE PROVINCE'S TOTAL RECOVERABLE OIL RESERVES BY NEARLY 100 MILLION BARRELS 9311290034 931129 BUSINESS BRIEF CANADIAN PACIFIC LTD CP RAIL UNIT SEEKS APPROVAL OF DOMINION ATLANTIC SALE CP RAIL SYSTEM SAID IT APPLIED TO THE NATIONAL TRANSPORTATION AGENCY FOR APPROVAL OF AN AGREEMENT TO SELL THE OPERATING ASSETS OF DOMINION ATLANTIC RAILWAY IN NOVA SCOTIA TO A GROUP OF CANADIAN AND US INVESTORS WHO WILL MANAGE THE OPERATION UNDER THE NAME WINDSOR & HANTSPORT RAILWAY CO CP RAIL BASED IN MONTREAL SAID THE AGREEMENT INCLUDES INCENTIVES DESIGNED TO ENCOURAGE THE NEW OPERATORS TO GIVE THE RAIL LINE'S CURRENT EMPLOYEES AN OPPORTUNITY TO JOIN THE NEW RAILWAY BOTH PARTIES HAVE AGREED NOT TO DISCLOSE THE PURCHASE PRICE PENDING NTA APPROVAL W&H WILL TAKE RESPONSIBLITY FOR 58 MILES OF TRACK EIGHT LOCOMOTIVES AND 76 RAIL CARS CP RAIL IS OWNED BY CANADIAN PACIFIC LTD W&H IS THE NAME UNDER WHICH IRON ROAD RAILWAYS WASHINGTON DC OPERATES LOCALLY 9311290033 931129 BUSINESS BRIEF SUN CO PETROLEUM UNIT TAKES STEPS TO BOOST OUTPUT AT PLANT DESPITE PLUNGING CRUDE OIL PRICES THE OIL SANDS OPERATIONS OF SUNCOR INC TORONTO WILL REMAIN PROFITABLE NEXT YEAR PREDICTS THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE RICK GEORGE SUNCOR IS 55 OWNED BY SUN CO RADNOR PA OFFSETTING LOWER OIL PRICES THE COMPANY HAS TAKEN AGGRESSIVE STEPS TO CUT OPERATING COSTS AND BOOST PRODUCTION OF SYNTHETIC CRUDE OIL AT ITS FORT MCMURRAY ALBERTA OIL SANDS PLANT ROUGHLY MORE THAN 80 OF SUNCOR'S OIL OUTPUT MR GEORGE SAID FOR 1994 HE PROJECTS OPERATING COSTS FOR SUNCOR'S OIL SANDS OPERATIONS OF ABOUT C14 US1050 A BARREL DOWN FROM C16 TO C1650 A BARREL IN 1993 AND C19 A BARREL IN 1992 MUCH OF THE COST REDUCTION IS DUE TO THE COMPANY'S RECENT SWITCH TO A TRUCK AND SHOVEL PROCESS FOR MINING THE CRUDE OIL SANDS RESOURCE FROM A CONVENTIONAL BUCKET WHEEL PROCESS MR GEORGE SAID AS A RESULT MR GEORGE PREDICTS THAT THE FORT MACMURRAY PLANT'S OIL OUTPUT WILL CLIMB TO 68000 BARRELS A DAY BY YEAREND FROM PRESENT LEVELS OF ABOUT 60000 BARRELS A DAY AND WILL REMAIN AT THE HIGHER LEVEL THROUGHOUT 1994 9311290032 931129 WE SAVED THE SALAMANDER BUT IT WASN'T EASY BY MARK SUWYN EARLIER THIS MONTH I HAD THE PLEASURE OF ANNOUNCING WITH INTERIOR SECRETARY BRUCE BABBITT HIS DEPARTMENT'S ACCEPTANCE OF MY COMPANY'S HABITAT CONSERVATION PLAN FOR THE RED HILLS SALAMANDER INTERNATIONAL PAPER CAN NOW CONDUCT FORESTRY OPERATIONS ON ALL BUT 4500 OF THE 568896 ACRES WE OWN IN SOUTHERN ALABAMA THE ANNOUNCEMENT WAS THE RESULT OF A PROCESS THAT WAS BOTH SATISFYING AND FRUSTRATING SATISFACTION CAME THROUGH THE COLLABORATIVE STEPS INVOLVING THE US FISH & WILDLIFE SERVICE ENVIRONMENTAL ORGANIZATIONS PUBLIC REVIEW AND OUR OWN CORPORATION WITH NO CONFLICT OR COSTLY LITIGATION WE ACHIEVED THIS PRIME EXAMPLE OF SUSTAINABLE DEVELOPMENT WE EXPECT TO DERIVE REVENUES FROM OUR PROPERTY WITH NO JOBS LOST OR LOCAL ECONOMIES DISRUPTED THE THREATENED RED HILLS SALAMANDER IS PROTECTED ALL OF US HAVE BEEN SPARED THE STEW OF PUBLIC CONTROVERSY THAT SURROUNDED THE SNAIL DARTER AND THE NORTHERN SPOTTED OWL FRUSTRATION CAME FROM THE OUTLAY OF SUBSTANTIAL SUMS OF MONEY OVER TWO YEARS TO PAY FOR THREE SETS OF OUTSIDE PERSONNEL FIRST WERE THE DOZENS OF LAWYERS TO MAKE SURE WE UNDERSTOOD AND COMPLIED WITH THE LAW SECOND WERE THE NUMEROUS SCIENTISTS REQUIRED TO IDENTIFY LOCATE AND DEAL WITH ENDANGERED SPECIES NOT ALL ENDANGERED SPECIES ARE AS EASILY TARGETED AS EAGLES REPOSING NOBLY IN SOFASIZED NESTS HIGH IN THE TREETOPS AND SILHOUETTED AGAINST THE BIG SKY THE RED HILLS SALAMANDER IS A FEW INCHES LONG LIVES UNDERGROUND AND COMES OUT ONLY AT NIGHT FROM DIMESIZED HOLES THIRD WERE THE CONSULTANTS TO HELP US PROPOSE COST OUT AND FOLLOW THE PLAN PROUD AS WE ARE TO HAVE ESTABLISHED THIS PROGRAM THE PROCESS REVEALED SOME FLAWS IN THE ENDANGERED SPECIES ACT UNDER WHICH IT WAS APPROVED THE MAIN PROBLEM IS THAT IT ALMOST AUTOMATICALLY EXCLUDES FROM PROTECTION 70 OF THE LANDS IN THE SOUTHEAST AND ARGUABLY 70 OF THE THREATENED AND ENDANGERED SPECIES UNLIKE THE PACIFIC NORTHWEST WHERE MILLIONS OF ACRES ARE OWNED BY FEDERAL AND STATE GOVERNMENTS MOST OF THE LAND IN THE SOUTHEAST IS PRIVATELY OWNED BY NONINDUSTRIAL LANDOWNERS FAMILIES OR SMALL BUSINESSES IN SMALL TRACTS FOR THEM A HABITAT CONSERVATION PROGRAM IS TOO EXPENSIVE AND CONFUSING THEY CAN'T EVEN CONTEMPLATE PROTECTING A SPECIES A CONSCIENTIOUS SMALL LANDOWNERFORESTER WHO TRIES TO PROTECT THREATENED SPECIES HAS TWO OPTIONS HE CAN SPEND THE MONEY FOR A HABITAT CONSERVATION PROGRAM THEREBY REDUCING HARVESTS ON SOME OF THE LAND OR HE CAN TOTALLY SHUT DOWN THE LAND WHERE THE SPECIES EXISTS AND FORGO THE INCOME THE THIRD COURSE IS TO PASS ON BOTH OPTIONS AND CUT HIS LAND BEFORE ANYBODY FINDS OUT THERE'S A RED HILLS SALAMANDER UNDERFOOT APART FROM THE NORMAL COST OF DOING BUSINESS CRITICAL HABITAT DESIGNATION AT ONCE RENDERS MANY LANDS NEARLY VALUELESS FOR COMMERCIAL PURPOSES INTERNATIONAL PAPER'S GOOD RESULTS WERE POSSIBLE ONLY BECAUSE OUR LARGE CORPORATION CAN AFFORD TO INVEST IN THE FUTURE THE PROCESS JUST DOESN'T WORK FOR SMALL LANDOWNERS OWNERS OF MOST OF THE LAND IN MUCH OF THE NATION BECAUSE OF COSTS AND THE INFLEXIBLE OPENENDED NATURE OF THE PROCESS THE SMALL LANDOWNER MUST BE BROUGHT INTO THE PROCESS TODAY WHEN PRIVATE LAND IS INCLUDED IN A CRITICAL HABITAT OR WHEN LANDMANAGEMENT GUIDELINES ARE IMPOSED ON PRIVATE LAND PROPERTY OWNERS BECOME RESPONSIBLE FOR SPECIES RECOVERY WITH NO HEARING AND NO COMPENSATION IN OTHER TIMES THE PROBLEMS OF THE SMALL LANDOWNER IN THE SOUTHEAST MIGHT HAVE BEEN A LOCAL PROBLEM NO MORE IN OUR INTERNATIONAL ECONOMY THESE PROBLEMS CONTRIBUTE SIGNIFICANTLY TO A GLOBAL PREDICAMENT THERE IS A GROWING FIBERSUPPLY CRISIS PUSHING UP PRICES TIMBER SUPPLY IS LIMITED BY CLEAN WATER AND WETLANDS ISSUES AND THE DISPOSITION OF PUBLIC LANDS IN THE NORTHWEST THE ABILITY OF SMALL LANDOWNERS IN THE SOUTHEAST TO PROVIDE TIMBER WHILE PROTECTING THE ENVIRONMENT BECOMES INCREASINGLY IMPORTANT LIKE OTHER INDUSTRIAL FORESTERS INTERNATIONAL PAPER BUYS MORE THAN HALF OF THE TIMBER IT USES IN ITS MILLS FROM SMALL LANDOWNERS IN THE SOUTHEAST WE ARE A BIG COMPANY WITH SIGNIFICANT ASSETS MULTINATIONAL CORPORATIONS WILL INDEED BENEFIT IF THE ENDANGERED SPECIES ACT IS MODIFIED TO HELP SMALL LANDOWNERS BUT THIS IS FAR MORE THAN A SPECIALINTEREST PLEA THE GREATEST RELIEF WILL BE FOR THOUSANDS OF SMALL BUSINESSES AND LANDOWNERS FOR MANY THREATENED SPECIES AND FOR CONSUMERS OF THE FOREST PRODUCTS THAT ARE NOW ENDANGERED BY FAULTY REGULATION SMALL AND LARGE BUSINESSES WILL BENEFIT BY A STREAMLINED MORE WORKABLE ENDANGERED SPECIES ACT THAT RECOGNIZES ALL THE SPECIES AND THE MANY BUSINESSES AND JOBS THAT ARE UNDER THREAT OF SURVIVAL MR SUWYN IS EXECUTIVE VICE PRESIDENT FORESTRY AND SPECIALTY PRODUCTS DIVISION OF INTERNATIONAL PAPER CO PURCHASE NY 9311290031 931129 BUSINESS BRIEF BCE INC UNIT'S WORKSHARING PLANS REJECTED BY CANADA AGENCY BELL CANADA SAID CANADA'S EMPLOYMENT AND IMMIGRATION COMMISSION HAS DENIED WORKSHARING PROGRAM APPLICATIONS SUBMITTED BY THE COMPANY AND TWO UNIONS THE COMMUNICATIONS ENERGY AND PAPERWORKERS' UNION OF CANADA AND THE CANADIAN TELEPHONE EMPLOYEES' ASSOCIATION BELL CANADA A UNIT OF BCE INC MONTREAL SAID IT AND UNION OFFICIALS WILL HOLD MEETINGS IN THE NEXT FEW DAYS TO DETERMINE A COURSE OF ACTION AS PREVIOUSLY REPORTED THE COMPANY ANNOUNCED IN SEPTEMBER A PLAN TO CUT ABOUT 5000 JOBS PART OF THE PLAN INCLUDED A PROPOSAL CALLING FOR SHORTER WORKWEEKS FOR SOME EMPLOYEES WITH COMPENSATION FOR THE OTHER DAYS OF THE WEEK PROVIDED BY UNEMPLOYMENT INSURANCE THE COMPANY SAID THE COMMISSION SAID IT WASN'T CONVINCED THAT BELL'S SITUATION INVOLVES A SHORTAGE OF WORK AS DEFINED FOR PURPOSES OF THE PROGRAM 9311290030 931129 BUSINESS BRIEF ESQUIRE RADIO & ELECTRONICS INC TENDER OFFER IS TERMINATED INVESTORS SUGGEST ACQUISITION ESQUIRE RADIO & ELECTRONICS INC SAID IT WAS TERMINATING A TENDER OFFER FOR AS MANY AS 150000 COMMON SHARES OR ABOUT 31 OF SHARES OUTSTANDING AT 47 EACH THE NEW YORK COMPANY ALSO SAID IT HAD RECEIVED AN UNSOLICITED OFFER FOR ITS PURCHASE FOR 50 A SHARE OR ABOUT 24 MILLION ESQUIRE OFFICIALS COULDN'T BE REACHED TO ELABORATE ON THE ANNOUNCEMENT ESQUIRE A TELECOMMUNICATIONSEQUIPMENT CONCERN SAID THAT A LETTER FROM STEEL PARTNERS II AN INVESTOR GROUP PROPOSED TO ACQUIRE ALL OF ESQUIRE'S STOCK SUBJECT TO APPROVAL BY DIRECTORS AND NEGOTIATION OF A DEFINITIVE MERGER AGREEMENT ESQUIRE'S TENDER OFFER WAS SCHEDULED TO EXPIRE ON DEC 9 A SHAREHOLDER HAS BROUGHT A SUIT ALLEGING THAT THE TENDER OFFER WAS AN ATTEMPT BY THE LIEBERMAN FAMILY WHO MAKE UP THE COMPANY'S MANAGEMENT AND LARGEST SHAREHOLDER GROUP TO GAIN MAJORITY CONTROL AND AVOID A PROXY FIGHT 9311290029 931129 WHAT'S NEWS BUSINESS AND FINANCE JAPAN AND THE US AGREED ON A PLAN TO OPEN JAPAN'S MARKETS TO RICE IMPORTS GIVING AN IMPORTANT BOOST TO WORLD TRADE TALKS IN GENEVA JAPAN IS EXPECTED TO FORMALLY AGREE AROUND DEC 10 TO LIFT ITS LONGSTANDING BAN ON RICE IMPORTS US OFFICIALS SAID THE AGREEMENT WOULD ADD TO PRESSURE ON THE EUROPEAN COMMUNITY TO SWEETEN ITS OFFER ON AGRICULTURAL PRODUCTS IN THE TRADE NEGOTIATIONS RETAILERS RANG UP RESPECTABLE GAINS DURING THE WEEKEND AFTER THANKSGIVING ALTHOUGH SHOPPERS LAUNCHED THE HOLIDAY SEASON WITH BARGAIN HUNTING A LOT OF WINDOW SHOPPING AND ONLY CAUTIOUS SPENDING GM'S HUGHES AIRCRAFT IS EXPECTED TO ANNOUNCE IT WON A CONTRACT VALUED AT NEARLY 400 MILLION TO PROVIDE CELLULAR SWITCHING EQUIPMENT AND TECHNOLOGY FOR BELLSOUTH SECURING A FOOTHOLD IN THE US CELLULAR MARKET HUGHES DISCOUNTED HEAVILY TO DISLODGE ENTRENCHED PROVIDERS SUCH AS MOTOROLA TOKYO STOCKS DROPPED MORE THAN 3 MONDAY MORNING AFTER FALLING 29 FRIDAY AND ANALYSTS NOTED THE POTENTIAL FOR MORE SELLING PRESSURE THIS WEEK THE NIKKEI FELL 60826 TO CLOSE THE MORNING SESSION AT 1611811 EMPLOYMENT IN THE FIRST QUARTER IS EXPECTED TO CONTINUE TO EXPAND MODERATELY WITH SIGNIFICANT IMPROVEMENT IN DURABLEGOODS MANUFACTURING AND IN THE FINANCE INSURANCE AND REALESTATE SECTOR MANPOWER SAID MACHINETOOL ORDERS FELL 85 IN OCTOBER FROM SEPTEMBER BUT JUMPED 25 FROM THE YEAREARLIER MONTH AS MANUFACTURERS CONTINUED TO SEEK EQUIPMENT TO CUT COSTS AND BOOST PRODUCTIVITY WORLD OIL PRICES FELL FURTHER IN THE WAKE OF OPEC'S DECISION TO LEAVE ITS PRODUCTION CEILING UNTOUCHED ANOTHER TEST OF THE ANNOUNCEMENT COMES TODAY WHEN THE NEW YORK MERC REOPENS FOLLOWING THE THANKSGIVING HOLIDAY PRICES DECLINED 1 A BARREL SINCE WEDNESDAY WHEN OPEC MEMBERS ADJOURNED THEIR WINTER MEETING QVC AND VIACOM AGREED TO FREEZE THEIR COMPETING BIDS FOR PARAMOUNT DURING AN EXPECTED TWOWEEK APPEAL OF WEDNESDAY'S COURT ORDER THAT BLOCKED VIACOM FROM BUYING PARAMOUNT PARAMOUNT AND CHRISCRAFT WON A KEY ALLIANCE IN THE RACE TO LAUNCH A FIFTH BROADCAST NETWORK ADDING TELEVISION STATION GROUP RIVER CITY BROADCASTING TO THEIR AFFILIATE LINEUP VOLKSWAGEN EXPECTS TO REPORT A GROUP LOSS OF 118 BILLION FOR 1993 PRIMARILY AS A RESULT OF LOSSES AT THE GERMAN CAR MAKER'S SPANISH UNIT A JUDGE GRANTED ICN PHARMACEUTICALS' REQUEST TO BLOCK STOCKBROKER RAFI KHAN'S ATTEMPT TO TAKE CONTROL OF ICN AFTER FINDING THAT KHAN DEFRAUDED THE BRITISH GOVERNMENT IN A 1986 SCHEME THE SEC IS NEARING A DECISION ON WHETHER TO TAKE ENFORCEMENT ACTION IN CONNECTION WITH A SQUEEZE IN TWOYEAR TREASURY NOTES IN APRIL 1991 THE LAW FIRM OF AKIN GUMP AND ACCOUNTING FIRM GRANT THORNTON WERE SUED IN SEPARATE ACTIONS BY THE THRIFT CLEANUP AGENCY IN CONNECTION WITH THE FAILURE OF SAN JACINTO SAVINGS THE RTC ALSO CHARGED THAT SIX FORMER DIRECTORS OF SAN JACINTO ABDICATED THEIR RESPONSIBILITY FOR CHECKING LOANS CHINESE COMPANIES AND LOCAL OFFICIALS ARE HEEDING BEIJING'S RECENT CALLS FOR SWIFT ECONOMIC DEVELOPMENT PROMPTING SOME ECONOMISTS TO WARN OF A RESURGENCE IN INFLATION BONDS LEHMAN BROTHERS TREASURY INDEX 552071 UP 3620 COMMODITIES DOW JONES FUTURES INDEX 13709 UP 082 SPOT INDEX 12395 UP 064 DOLLAR 10888 YEN UP 070 17136 MARKS UP 00113 9311290028 931129 ATLAS COPCO POSTS 24 RISE IN PROFIT FOR FIRST 9 MONTHS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDISH ENGINEERING AND HEAVYMACHINERY GROUP ATLAS COPCO AB SAID ITS PRETAX PROFIT AFTER FINANCIAL ITEMS ROSE 24 TO 910 MILLION KRONOR 1086 MILLION IN THE FIRST NINE MONTHS IN LINE WITH MARKET EXPECTATIONS PRETAX PROFIT AFTER FINANCIAL ITEMS IN THE YEAREARLIER PERIOD TOTALED 732 MILLION KRONOR SALES INCREASED 16 IN THE FIRST NINE MONTHS TO 1355 BILLION KRONOR FROM 1165 BILLION KRONOR A YEAR EARLIER ADJUSTED FOR DIVESTMENTS AND ACQUISITIONS SALES IN COMPARABLE UNITS ROSE 13 IN THE PERIOD HANS FERNBERG VICE PRESIDENT IN CHARGE OF INVESTOR RELATIONS AT ATLAS COPCO SAID THE RISE IN SALES STEMS FROM THE DEPRECIATION OF THE SWEDISH KRONA VOLUMES OF SALES FOR COMPARABLE UNITS FELL BETWEEN 8 AND 10 IN THE PERIOD REFLECTING WEAK MARKET CONDITIONS THE GROUP'S NINEMONTH ORDER INTAKE WAS UP 19 TO 1423 BILLION KRONOR FROM 1199 BILLION KRONOR IN THE FIRST THREE QUARTERS OF 1992 THE COMPANY SAID OPERATING PROFIT FELL TO 826 MILLION KRONOR FROM 895 MILLION KRONOR A YEAR EARLIER ATTRIBUTABLE TO LOWER SALES VOLUMES ATLAS COPCO SAID HOWEVER GROUP FINANCIAL ITEMS CONTRIBUTED A SURPLUS OF 42 MILLION KRONOR IN THE FIRST NINE MONTHS SWINGING FROM A DEFICIT OF 123 MILLION KRONOR A YEAR EARLIER IT SAID THE IMPROVEMENT IS DUE TO DECREASED NET LENDING LOWER INTEREST RATES AND POSITIVE EFFECTS FROM HEDGING ON FOREIGN INVESTMENTS THE GROUP SAID THE WEAKENING OF THE KRONA AND EXTENSIVE INTERNAL STREAMLINING MEASURES ENABLED ATLAS COPCO TO INCREASE PRETAX PROFIT IN THE FACE OF VERY WEAK BUSINESS CONDITIONS MR FERNBERG SAID ATLAS COPCO'S SALES VOLUMES HAVE FALLEN 25 IN THE PAST THREE YEARS MR FERNBERG SAID THE GROUP HAS MET THE CHALLENGE OF SHRINKING MARKETS THROUGH RESTRUCTURING AND COSTCUTTING PROGRAMS HE SAID ATLAS COPCO LEFT ITS FULLYEAR PROFIT FORECAST UNCHANGED IN 1993 PRETAX PROFIT AFTER FINANCIAL ITEMS IS EXPECTED TO IMPROVE FROM THE 102 BILLION KRONOR REPORTED IN 1992 IT SAID 9311290027 931129 HEARD ON THE STREET PICKUP IN HOUSING STARTS SPELLS GOOD NEWS FOR USG AND NATIONAL GYPSUM MANAGER SAYS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL AT LAST HOUSING STARTS ARE SHOWING SOME STEAM AND G KENNETH HEEBNER WHO OVER THE PAST 10 YEARS HAS ONE OF THE BEST RECORDS IN THE MONEYMANAGEMENT BUSINESS THINKS HE HAS FIGURED OUT A GREAT WAY TO CASH IN ON THE TREND GYPSUM STOCKS MR HEEBNER CHIEF INVESTMENT OFFICER AT CAPITAL GROWTH MANAGEMENT IN BOSTON HAS BEEN BUYING USG ON THE NEW YORK STOCK EXCHANGE AND NATIONAL GYPSUM ON THE NASDAQ STOCK MARKET MORE HOUSING ACTIVITY MEANS MORE WALLBOARD BETWEEN THEM USG AND NATIONAL GYPSUM CONTROL ABOUT 60 OF THE WALLBOARD MARKET THE STOCKS ALREADY HAVE MOVED UP SHARPLY SINCE THEY EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS EARLIER THIS YEAR BUT MR HEEBNER AND SEVERAL ANALYSTS THINK THERE'S ROOM FOR FURTHER GAINS MR HEEBNER SAYS HIS PORTFOLIO TODAY CONTAINS MASSIVE POSITIONS IN CYCLICAL STOCKS THAT RISE AND FALL WITH THE ECONOMIC TIDES I'M AN UNABASHED BULL ON THE ECONOMY HE SAYS BECAUSE HE SEES NO KIND OF INFLATION PROBLEM HE FIGURES WE CAN GROW FOR SEVERAL YEARS BEFORE RISING INTEREST RATES BECOME A SERIOUS SNAG MR HEEBNER SAYS THE BIG SURPRISE WILL BE THAT THE STRENGTH CYCLICAL STOCKS HAVE SHOWN IN 1993 WILL CARRY OVER IN 1994 1995 AND 1996 USG AND NATIONAL GYPSUM ARE TWO OF MR HEEBNER'S FAVORITE CYCLICALS THE BANKRUPTCIES SHOOK OUT THEIR FOLLOWING HE SAYS WITH FEW BROKERAGEHOUSE ANALYSTS FOLLOWING EITHER STOCK HE SAYS HE HAS BEEN ABLE TO SCOOP UP THE SHARES AT BARGAIN PRICES BOTH COMPANIES TUMBLED INTO BANKRUPTCY PROCEEDINGS BECAUSE THEY HAD LOADED THEMSELVES UP WITH DEBT AND THEN WALLBOARD PRICES FELL TO A 14YEAR LOW BUT LATELY WALLBOARD PRICES HAVE BEEN MARCHING UPWARD BRIAN BOGART AN ANALYST WITH DUFF & PHELPS IN MONTPELIER VT SAYS THE LOW POINT ABOUT 68 PER THOUSAND SQUARE FEET CAME IN THE FIRST QUARTER OF 1992 RECENTLY THE AVERAGE PRICE HAS BEEN ABOVE 80 FURTHER INCREASES ARE LIKELY MR BOGART SAYS BECAUSE WALLBOARD PRODUCERS ARE OPERATING PRETTY CLOSE TO CAPACITY ALTHOUGH HE DOESN'T EXPECT THE PRICE TO REVISIT THE PEAK OF 128 IT HIT IN 1985 HE THINKS 90 TO 100 BY 1996 IS REALISTIC A LITTLE PRICE IMPROVEMENT GOES A LONG WAY IN IMPROVING EARNINGS AT USG SAYS ANALYST DONALD ZWYER OF SALOMON BROTHERS SALOMON IS USG'S INVESTMENT BANKER EVERY 10 PER 1000 SQUARE FEET IS WORTH ANOTHER 1 PER SHARE IN EARNINGS HE SAYS HE EXPECTS USG TO EARN 145 A SHARE IN 1994 AND 235 A SHARE IN 1995 BY WHICH TIME HE THINKS WALLBOARD WILL BE AT 95 PER THOUSAND SQUARE FEET THOSE EARNINGS NUMBERS EXCLUDE CERTAIN AMORTIZATION CHARGES RELATED TO TECHNICAL ASPECTS OF USG'S EMERGENCE FROM BANKRUPTCY BECAUSE OF THOSE CHARGES REPORTED PERSHARE EARNINGS ARE PENALIZED CLOSE TO 5 A YEAR AND ARE NEGATIVE UNFORTUNATELY USG HAD TOO MUCH DEBT PUT ON IT AT A PERIOD WHEN THE ECONOMY WAS VERY WEAK MR ZWYER SAYS THEY HAVE RESTRUCTURED THE DEBT TO A LEVEL THAT'S VERY MANAGEABLE OPERATIONS HAVE REMAINED STRONG THROUGH THE WHOLE PROCESS MR ZWYER RECENTLY PUT OUT A BUY REPORT ON THE STOCK HE THINKS IT COULD HIT 28 FAIRLY SOON AND RISE CONSIDERABLY HIGHER WITHIN TWO TO THREE YEARS JONATHAN GOLDFARB OF MERRILL LYNCH RECENTLY RECOMMENDED A PACKAGE OF STOCKS HE THINKS WILL BENEFIT FROM RENEWED STRENGTH IN HOME BUILDING USG IS PROMINENT AMONG THEM ALTHOUGH HE IS EVEN KEENER ON OWENSCORNING FIBERGLAS WHICH MAKES ROOFING SHINGLES AND INSULATION AND LITTLE ABT BUILDING PRODUCTS WHICH MAKES A VARIETY OF ITEMS INCLUDING HARDBOARD SIDING PANELING AND SHUTTERS THE GLOBAL ECONOMY SEEMS AWASH IN TOO MUCH OF ALMOST EVERYTHING BUT WALLBOARD IS AN EXCEPTION SAYS MR GOLDFARB DEMAND IS UP CONSTRUCTION ACTIVITY IS INCREASING AND CAPACITY HAS SHRUNK OVER THE LAST DECADE GYPSUM STOCKS AREN'T SURE THINGS EVEN PROPONENTS ACKNOWLEDGE THE COMPANIES CARRY HEAVY DEBT EVEN AFTER EMERGING FROM BANKRUPTCY FURTHERMORE GYPSUM PRODUCERS STILL FACE UNCERTAINTIES REGARDING ASBESTOS LITIGATION STILL THE STOCKS ARE INTRIGUING A SHOT AT 50 UP IN LESS THAN TWO YEARS THERE'S NOTHING WRONG WITH THAT SAYS MR GOLDFARB EVEN 1995 IN MY OPINION IS STILL A YEAR OR TWO BEFORE THE NEXT CYCLICAL PEAK BECAUSE THIS IS A VERY LONG AND DRAWNOUT AND SLOW ECONOMIC CYCLE 9311290025 931115 REVIEW & OUTLOOK EDITORIAL LAW AND ORDER 101 AFTER CONCLUDING THAT ONE OF THE RECENT ELECTIONS' BIG MESSAGES WAS DO SOMETHING ABOUT CRIME AND CRIMINALS THE SENATE THIS WEEK WILL VOTE ON A SERIES OF AMENDMENTS TO THE CRIME BILL SOME GOOD MAY COME OF THIS NO ONE DOUBTS ANYMORE THAT THE FEROCITY OF VIOLENT CRIME IN THE US HAS REACHED TRULY FRIGHTENING LEVELS BUT IT IS ALSO TRUE THAT ALL THIS CRIME RUNS ALONGSIDE A LEGAL AND SOCIAL CULTURE THAT IS MORE THAN A LITTLE LOOSED FROM ITS USUAL MOORINGS THIS WAS NEVER MORE EVIDENT TO US THAN WHEN WATCHING NEWS CLIPS RECENTLY OF THE SKYDIVER WHO TERRIFIED THE MULTITUDES BY CRASHING INTO THE CHAMPIONSHIP BOWEHOLYFIELD BOUT AT CAESAR'S PALACE THE TANGLED SKYDIVER WAS STRIKING ENOUGH BUT EVEN MORE NOTABLE WAS THE APPARENT PUBLIC OUTRAGE THAT HE COULD BE SET FREE AFTER PAYING JUST 200 IN BAIL THE REAL SURPRISE IS THAT ANYONE SHOULD BE SURPRISED WE LIVE AFTER ALL IN A CULTURE THAT CONTINUALLY PROVIDES REWARDS FOR EXHIBITIONISM CONSIDER THE WARM MEDIA SPOTLIGHT AVAILABLE TO ALL WHO COME FORWARD ON NATIONAL TELEVISION TO SHARE THE INTIMATE NEWS OF THEIR GENDER CHANGES ORGASMIC RESPONSES OR LACK THEREOF THEIR DIVORCES MARRIAGES ADVENTURES IN INFIDELITY CROSSDRESSING ETC IN OUR TIMES PATHOLOGY IS CELEBRATED AS ART AND INFANTILISM ANOINTED AS CUTTING EDGE CREATIVITY WORTHY OF GOVERNMENT FUNDING SEE THE CASE OF PERFORMANCE ARTIST KAREN FINLEY WHO WON ACCLAIM FROM THE ARTS COMMUNITY FOR EXPRESSING HER SEXUAL IDENTITY AND GENERAL SOCIOPOLITICAL RAGE BY SMEARING HER BARE BODY PARTS WITH CHOCOLATE A STANDIN FOR EXCREMENT ALL THAT WAS MISSING IN SKYDIVER JAMES MILLER'S ACT WAS THE INSTANT DECLARATION THAT HE HAD CHOSEN TO CAREEN INTO THE RINGSIDE ROPES AS AN ACT OF POLITICAL DISSENT AS TO THE DIVER'S LOW BAIL SURELY NO ONE SHOULD BE TAKEN ABACK A NEWSPAPER REPORT CITES MUCH RESENTMENT AMONG THE FIGHT'S PROMOTERS OVER THE FACT THAT THE DIVER WHO COULD WELL HAVE CAUSED SERIOUS INJURY WAS ONLY CHARGED WITH A MISDEMEANOR ANOTHER ANGRY COMMENTATOR WANTED TO KNOW WHY THE INTRUDER HADN'T BEEN CHARGED WITH ATTEMPTED MURDER IT'S EASY TO SYMPATHIZE WITH THE OUTRAGE OF PEOPLE WHO HAVE HAD IT SUDDENLY BORNE HOME TO THEM THAT THOSE WHO COMMIT ACTS THREATENING TO THE LIVES AND SAFETY OF OTHERS CAN GO UNPUNISHED ON THE OTHER HAND WE HAVE HAD A GOOD DEAL OF PRECEDENT FOR THIS SORT OF THING IN RECENT TIMES THE LOS ANGELES ASSAILANTS WHO SMASHED A BRICK INTO TRUCK DRIVER REGINALD DENNY'S FACE AND LEFT HIM NEAR DEATH WERE LET OFF WITH THE EQUIVALENT OF A LEGAL WRISTSLAP THE JURORS EVIDENTLY CHOSE TO ACCEPT THE DEFENSE'S ARGUMENT THAT SINCE THE ATTACKER WIELDING THE BRICK HAD NOT TARRIED AFTER SMASHING THE VICTIM'S HEAD TO MAKE SURE HIS VICTIM WAS DEAD HE SHOULD NOT BE ACCUSED OF ATTEMPTED MURDER DURING THE CROWN HEIGHTS RIOTS IN NEW YORK CITY RABBINICAL STUDENT YANKEL ROSENBAUM WAS CHASED DOWN AND MURDERED BY A CROWD YELLING KILL THE JEW THOUGH THE EVIDENCE AGAINST HIS ATTACKER WAS CONCLUSIVE A JURY VOTED FOR ACQUITTAL SOME OF THEM INDEED LATER WENT ON TO KISS THE DEFENDANT AND ATTEND A SMALL CELEBRATION IN HIS HONOR DISPLAYS LIKE THESE OF THE WAY THE LEGAL SYSTEM WORKS NOWADAYS OR RATHER DOES NOT WORK HAVE INEVITABLE CONSEQUENCES THOSE INCLUDE AN AMERICAN PUBLIC MADE INCREASINGLY FEARFUL AND DEMORALIZED BECAUSE THEY HAVE HAD THE GRIM OPPORTUNITY TO WATCH FUNDAMENTAL PRECEPTS OF JUSTICE AND SANITY UNRAVEL IN NEW YORK ON MONDAY LAWYERS FOR THE LONG ISLAND LANDSCAPER WHO CONFESSED TO KILLING 17 WOMEN ARGUED THAT THE POLICE ILLEGALLY SEARCHED JOEL RIFKIN'S PICKUP TRUCK THE POLICE THE LAWYERS ARGUED HAD NO PROBABLE CAUSE TO SEARCH THAT VEHICLE THE PROSECUTOR IN TURN REJOINED THAT THERE WAS PLENTY OF PROBABLY CAUSE INCLUDING THE ODOR FROM THE CORPSE OF THE MURDERED WOMAN FOUND IN THAT TRUCK IMPROBABLE AS THE DEFENSE ARGUMENT SOUNDS THERE IS A FAIR CHANCE GIVEN THE TIMES THAT LEGAL PROCEDURALISM MAY TRIUMPH ALL OF THIS MAKES IT INCREASINGLY HARD TO TAKE SERIOUSLY THE SYSTEM THAT WILL BE ENTRUSTED WITH THE CRIME BILL'S BILLIONS OF DOLLARS THERE WAS A TIME WHEN STANDARDS OF LAW AND ORDER WERE SUCH THAT DISTURBING THE PEACE AND ENDANGERING THE PUBLIC BROUGHT LEGAL CONSEQUENCES BUT WHO TODAY CAN DEMAND PUNISHMENT FOR THE KIND OF SOCIAL DEVIANCY THAT MERELY CAUSES A MAN TO PLUNGE HIMSELF INTO A CROWDED BOXING RING WHEN AS WE'VE SEEN ACTS OF MURDER AND NEAR MURDER ARE LIGHTLY PUNISHED OR LET OFF ENTIRELY ONCE UPON A TIME EXHIBITIONISTS WERE CONTENT TO SIT ATOP FLAGPOLES THUS CONFINING THEIR EXPLOITS AND THEIR DANGERS TO THEMSELVES NO LONGER APPARENTLY IN ANY EVENT THE BOXINGRING CHUTIST DID NOT GO ENTIRELY UNSCATHED HAVING LANDED AS HE DID IN THE MIDST OF A CROWD THAT PROCEEDED TO PUMMEL HIM SEVERELY INSTANT JUSTICE THE CROWD DOUBTLESS FIGURED OUT SOME TIME AGO IS BETTER THAN NONE AT ALL SEE RELATED LETTER LETTERS TO THE EDITOR POWER DIVE WSJ NOV 29 1993 9311150077 YY93 MM11 9311290024 931129 REVIEW & OUTLOOK EDITORIAL A BANKING STORY TREASURY SECRETARY LLOYD BENTSEN TALKS ABOUT DROPPING BARRIERS TO INTERSTATE BANKING AND THAT HAS SOME PEOPLE WORRIED THAT THE DAYS OF THE SMALLTOWN BANKER ARE NUMBERED BUT WE SUSPECT SOMEBODY WILL ALWAYS BE ABLE TO MAKE MONEY LENDING ON A HANDSHAKE AND LOCAL KNOWLEDGE PROVIDED OF COURSE THAT WASHINGTON DOESN'T SMOTHER THEM IN REGULATORY FOLDEROL CONSIDER THE TROUBLING CASE OF ROGER LUSSIER AND VERMONT'S LYNDONVILLE SAVINGS BANK THERE'S NO DOUBT THAT MR LUSSIER WORE A LOT OF HATS BESIDES BEING THE BANK'S CHAIRMAN HE INVESTED IN REAL ESTATE DEALS AND SOLD OFF FORECLOSED PROPERTIES THROUGH HIS OWN AUCTIONEERING SERVICE MR LUSSIER GREW UP ON A NEARBY DAIRY FARM AND NEVER GOT PAST THE EIGHTH GRADE EVEN SO WHEN HE RETIRED IN FEBRUARY AFTER 27 YEARS HE LEFT BEHIND ONE OF THE BEST CAPITALIZED AND MOST CONSISTENTLY PROFITABLE SMALL BANKS IN THE COUNTRY IN SEPTEMBER THE US ATTORNEY IN VERMONT CHARGED MR LUSSIER WITH 20 COUNTS OF BANK FRAUD IF CONVICTED THE CHARGES CARRY 5 MILLION IN FINES AND 120 YEARS IN JAIL JOHN MCCLAUGHRY A STATE SENATOR WHO JOINED LYNDONVILLE'S BOARD OF DIRECTORS AFTER THE EVENTS IN QUESTION ATTRIBUTES THE CHARGES TO A CLASH OF CULTURES HE CHEERFULLY DESCRIBES LYNDONVILLE AS A JUNK BANK MAKING RISKY LOANS AT HIGH INTEREST RATES TO FARMERS IN VERMONT'S HARDSCRABBLE NORTHEAST KINGDOM ROGER DOESN'T FIT THE FDIC PROFILE OF A BANKER WITH A WHARTON DEGREE AND A THREEBUTTON VEST HE TELLS US VERMONT IS A STRICT FORECLOSURE STATE MEANING A BANK SELLING FORECLOSED COLLATERAL NOT ONLY CAN RECOUP ITS LOAN AND EXPENSES BUT LEGALLY KEEP ANY ADDITIONAL PROFIT MR LUSSIER IN OUR READING OF THE INDICTMENT COMES ACROSS AS SOMEBODY WHO TRIED TO LIQUIDATE BAD DEBTS ON BETTER TERMS THAN THESE FOR HIS BORROWERS THE INDICTMENT ACCUSES HIM OF SECRET SELFDEALING AND DEPRIVING THE BANK OF HONEST SERVICES IN HIS TREATMENT OF DAIRY FARMER MAURICE PROVOST WHAT HAPPENED WAS THAT THE BANK FORECLOSED ON MR PROVOST'S 1 MILLION MORTGAGE AND THEN TURNED AROUND AND SOLD SOME OF THE PROPERTY TO A PARTNERSHIP INVOLVING MR LUSSIER HIS BROTHER MR PROVOST AND MR PROVOST'S FATHER LATER THE PARTNERS RESOLD THE PROPERTY FOR A 300000 PROFIT IT'S WORTH NOTING THAT MR PROVOST'S PROBLEMS BEGAN WHEN THE AGRICULTURE DEPARTMENT WITHHELD PAYMENTS THAT WERE DUE UNDER ITS HERD BUYOUT PROGRAM AND MR LUSSIER HELPED SAVE HIS BUSINESS THE BANK GOT PAID IN FULL MR PROVOST TELLS US MY GRIPE IS WITH THE GOVERNMENT THEY WANT TO INDICT ROGER LUSSIER AND MAKE HIM LOOK AS BAD AS THEY CAN BUT HE WENT OUT ON A LIMB TO HELP PEOPLE MORE THAN OTHER BANKS WOULD ALSO FIGURING PROMINENTLY IN THE INDICTMENT ARE THE TROUBLES OF FARMEQUIPMENT DEALERS HOLLIS AND MAURICE ROWELL THE CHITTENDEN BANK WAS ABOUT TO FORECLOSE ON THEIR 350000 MORTGAGE AND MR LUSSIER AGREED TO PAY OFF THE DEBT AND OVERSEE AN ORDERLY SALE OF THEIR LAND EVENTUALLY BRINGING IN 2 MILLION FOR THEIR TROUBLE MR LUSSIER AND HIS BROTHER POCKETED 200000 IN COMMISSIONS COLUMNIST SAM HEMINGWAY OF THE BURLINGTON FREE PRESS USES WORDS LIKE APPALLING AND INFAMOUS TO DESCRIBE MR LUSSIER'S BUSINESS DEALINGS HE SAYS THE BANKER ORCHESTRATED THE SQUEEZE PLAY AGAINST THE ROWELLS THAT'S NOT HOW THE VICTIMS SEE IT WE WERE IN A DIRE SITUATION AND ROGER LUSSIER DID EXACTLY WHAT HE SAID HE WOULD DO HOLLIS ROWELL TELLS US I'VE ALWAYS BEEN SATISFIED IN ANY DEALINGS I'VE UNDERTAKEN WITH HIM MR LUSSIER IS ACCUSED OF AIDING AND ABETTING THE MISDEEDS OF CHARLIE KELTON VERMONT'S BIGGEST AUTO DEALER UNTIL HE WENT SPECTACULARLY BUST BUT THE US ATTORNEY OFFERS NO THEORY FOR HOW IT WOULD HAVE BENEFITED MR LUSSIER TO LET MR KELTON GET AWAY WITH KITING CHECKS AT LYNDONVILLE ALL THE OTHER CASES SHOW LYNDONVILLE PROFITING FROM MR LUSSIER'S DEALINGS WHICH ISN'T SURPRISING SINCE HE'S ONE OF THE BIGGEST SHAREHOLDERS MAYBE SOMETHING TRULY SCURRILOUS IS LURKING IN THE CLOSET BUT RIGHT NOW MR LUSSIER'S MAIN OFFENSE APPEARS TO HAVE BEEN A FAILURE TO OBSERVE WASHINGTON'S ROCOCO CONFLICTOFINTEREST FETISHES AT THE TIME THE GOVERNMENT WAS DEVELOPING THE CASE AGAINST HIM NEW ENGLAND STILL LANGUISHED UNDER THE HEEL OF THE FDIC'S JIMMY LOYLESS MR LUSSIER'S BANK MADE MONEY BECAUSE HE COULD SNIFF OUT RELIABLE CHARACTERS AMONG POTENTIAL BORROWERS BUT IN THE FDIC'S MYOPIA LOANS SHOULD BE MADE THE BIGBANK WAY WITH YOUR NOSE BURIED IN THE RULE BOOK THERE OUGHT TO BE A ROLE IN HERE SOMEWHERE ON ALL SIDES FOR JUDGMENT THERE'S NO DOUBT THAT VERMONT'S BANKING ESTABLISHMENT VIEWS MR LUSSIER AS AN UNFORTUNATE THROWBACK TO THE DAYS WHEN CATTLE DEALERS RAN THE STATE'S RURAL BANKS THE REGULATORY MOOD IN WASHINGTON CHANGED BUT HE DIDN'T CHANGE WITH THE TIMES SAYS ONE OF COURSE IT'S EXACTLY THIS NEW REGULATORY MOOD THAT THREATENS TO RUN SMALLTOWN BANKING OFF A CLIFF IN THE WAKE OF AN S&L FIASCO THE COMPLIANCE HEADACHES IMPOSED BY WASHINGTON NOW GOBBLE UP 28 OF OVERHEAD FOR A LYNDONVILLESIZE BANK COMPARED WITH 9 FOR CITICORP OR CHASE MANHATTAN VERMONT'S CHIEF BANKING REGULATOR ELIZABETH COSTLE WHILE NO FAN OF MR LUSSIER'S COMPLAINS THAT CONGRESS HAS INFLICTED A MAZE OF PAPERWORK AND REGULATION WE'D LIKE TO THINK THE PRIVATE SECTOR COULD STILL MAKE A LIVING FINANCING ENTREPRENEURS INSTEAD OF SOCKING DEPOSITS INTO TBILLS BUT FIRST WASHINGTON WILL HAVE TO GET OVER ITS S&L NEUROSIS AND GIVE BANKERS PERMISSION TO ACT LIKE BANKERS AGAIN 9311290023 931129 BUSINESS BRIEF NEW OJI PAPER CO TECHNICAL SUPPORT PLANNED FOR THAI EXPORTING GROUP NEW OJI PAPER CO ONE OF JAPAN'S LARGEST PAPER AND PULP MAKERS SAID THAT IT WILL PROVIDE TECHNICAL SUPPORT FOR THE PAPERPRODUCING OPERATIONS OF THAI EXPORTING GROUP SOON HUA SENG CO ENGINEERS FROM NEW OJI PAPER WILL PROVIDE TECHNICAL SUPPORT IN THAILAND FOR SOON HUA SENG A SPOKESMAN FOR THE TOKYO PAPER MAKER SAID HE WOULDN'T DISCLOSE THE PAYMENT TO NEW OJI A SOON HUA SENG SPOKESMAN CONFIRMED THAT THE COMPANY IS IN DISCUSSIONS WITH A JAPANESE COMPANY TO TRANSFER PAPER TECHNOLOGY BUT WOULDN'T DISCLOSE THE COMPANY'S NAME NEW OJI PAPER HAS NO PRODUCTION FACILITIES IN THAILAND THE SPOKESMAN SAID THE ARRANGEMENT WITH SOON HUA SENG WILL ALLOW THE COMPANY TO STUDY THE THAI PAPER AND PULP MARKET WHICH THE COMPANY ESTIMATES WILL GROW BY 10 ANNUALLY 9311290022 931129 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SEVEN NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 20 NEW LISTINGS FOR ITS NATIONAL MARKET SYSTEM INCLUDING 13 INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING ON THE FOLLOWING INITIAL OFFERINGS KOREA EQUITY FUND INC NEW YORK UNDER KEF A CLOSEDEND FUND MORGAN STANLEY HIGH YIELD FUND INC NEW YORK MSY A CLOSEDEND FUND TCW/DW TERM TRUST 2004 NEW YORK TDT A CLOSEDEND FUND THE BIG BOARD ADDED THE AMERICAN DEPOSITARY SHARES OF BANCO FRANCES DEL RIO DE LA PLATA SA BUENOS AIRES BFR A BANKING COMPANY ALSO COMPANIA BOLIVIANA DE ENERGIA ELECTRICA SA SALT LAKE CITY BLP A BOLIVIAN UTILITY COMPANY AND SOFAMOR DANEK GROUP INC MEMPHIS SDG A MAKER OF SPINAL IMPLANT DEVICES BOTH PREVIOUSLY TRADED OVERTHECOUNTER AND GC COS CHESTNUT HILL MASS GCX A MOTION PICTURE THEATER OPERATOR AND A SPINOFF FROM HARCOURT GENERAL INC THE NASDAQ MARKET SYSTEM ADDED THE FOLLOWING INITIAL OFFERINGS ARRIS PHARMACEUTICAL CORP SOUTH SAN FRANCISCO ARRS A DEVELOPER OF SYNTHETIC MOLECULE THERAPEUTICS ATLANTIC BEVERAGE INC BALTIMORE ABEV A DISTRIBUTOR OF NONALCOHOLIC BEVERAGES CABLEMAXX INC AUSTIN TEXAS CMAX A DEVELOPER OF WIRELESS CABLE TELEVISION SYSTEMS RAILTEX INC SAN ANTONIO RTEX A RAILROAD OPERATOR UNITED VIDEO SATELLITE GROUP INC TULSA OKLA UVSGA A PROVIDER OF SATELLITE SYSTEMS WEST MARINE INC WATSONVILLE CALIF WMAR A BOATING SUPPLIES RETAILER ADVANCED TECHNOLOGY MATERIALS INC DANBURY CONN ATMI A SEMICONDUCTOR DEVELOPER AND MAKER OF CHEMICAL TECHNOLOGIES MARTEK BIOSCIENCES CORP COLUMBIA MD MATK A DEVELOPER OF MICROALGAE PRODUCTS PHOTONICS CORP SAN JOSE CALIF PHTX A PRODUCER OF WIRELESS NETWORK PRODUCTS QUEENS COUNTY BANCORP INC FLUSHING NY QCSB A SAVINGS BANK CONVERSION CABLE DESIGN TECHNOLOGIES CORP PITTSBURGH CDTC A MAKER OF ELECTRONIC DATA TRANSMISSION CABLES CLINTRIALS INC NASHVILLE CCRO A CLINICAL RESEARCH ORGANIZATION AND UNION SWITCH & SIGNAL INC THE ORDINARY SHARES OF LONDON & OVERSEAS FREIGHTERS LTD HAMILTON BERMUDA LOFSY AN OPERATOR OF FLEET OIL TANKERS CURRENTLY TRADED ON THE LONDON STOCK EXCHANGE WERE ADDED TO THE NASDAQ NATIONAL MARKET SIX COMPANIES MOVED TO THE NASDAQ NATIONAL MARKET FROM THE SMALLCAP MARKET JACOR COMMUNICATIONS INC CINCINNATI JCOR AND WARRANTS UNDER JCORW A RADIO STATION OPERATOR JETFORM CORP OTTAWA FORMF A DEVELOPER OF SOFTWARE PRODUCTS APPLIED MICROBIOLOGY INC BROOKLYN NY AMBI A DEVELOPER OF MICROBIAL SYSTEMS TEMTEX INDUSTRIES INC DALLAS TMTX A PRODUCER OF FIREPLACE PRODUCTS AAON INC TULSA OKLA A MAKER OF AIR CONDITIONING SYSTEMS OTR EXPRESS INC OLATHE KAN OTRX A TRUCKLOAD MOTOR CARRIER THE AMEX BEGAN TRADING OPTIONS ON THE STOCK OF MEDIMMUNE INC GAITHERSBURG MD UNDER MEQ A MAKER OF THERAPEUTICS AND VACCINES THE AMEX ALSO BEGAN TRADING OPTIONS ON NORTH AMERICAN TELECOMMUNICATIONS INDEX XTC ITS NEW INDEX OF 15 TELECOMMUNICATION STOCKS AND THE EMERGING COMPANY MARKETPLACE AT THE AMEX BEGAN TRADING SHARES OF BESICORP GROUP INC KINGSTON NY BGIEC AN OPERATOR AND MANUFACTURER OF POWER PROJECTS AND ENERGY TECHNOLOGIES BESICORP PREVIOUSLY TRADED OVERTHECOUNTER THE PACIFIC STOCK EXCHANGE BEGAN TRADING VERMONT TEDDY BEAR CO SHELBURNE VT VTB A TEDDY BEAR MANUFACTURER 9311290021 931129 LETTERS TO THE EDITOR GALAXY FOODS DISPUTES STATEMENTS ABOUT FIRE WITH REGARD TO YOUR OCT 7 PAGEONE ARTICLE TOO HOT TO HANDLE GALAXY FOODS STRONGLY DISAGREES WITH THE COMMENTS AND INFERENCES IN REFERENCE TO THE FIRE THAT DESTROYED OUR NEWCASTLE PA FACILITY WE ARE AT ISSUE WITH THE PORTION OF THE ARTICLE THAT READS DESPITE THE OBVIOUS CONCLUSION OF ARSON LIBERTY MUTUAL HAD TO PAY BECAUSE ITS INVESTIGATORS COULDN'T IDENTIFY A SPECIFIC ACCELERANT AND FAILED TO ESTABLISH A LINK BETWEEN THE BLAZE AND THE OFFICERS OF GALAXY WE VIGOROUSLY DENY THAT THE FIRE WAS MOTIVATED FOR PROFIT AND THAT THE BENEFICIARIES ALTHOUGH NOT PROVEN WERE THE OFFICERS OF THE COMPANY AS A MATTER OF PUBLIC RECORD GALAXY HAD UNDERGONE A SERIOUS LABOR DISPUTE PRIOR TO THE FIRE AND THE FACT REMAINS THAT THE FIRE ALSO COULD HAVE BEEN CAUSED BY ONE OR MORE DISGRUNTLED EMPLOYEES AT THE TIME ANY SUGGESTION THAT GALAXY SOMEWHAT BENEFITED FROM SUCH FIRE IS LUDICROUS CONSIDERING THAT ALL THE EXPENSES OF RELOCATION AND STARTUP OF BUSINESS WERE SIGNIFICANTLY GREATER THAN THE TOTAL INSURANCE SETTLEMENT IN ADDITION OUR STOCK DROPPED FROM ABOUT 450 A SHARE TO AS LOW AS 50 CENTS A SHARE DURING THE ORDEAL 9311290020 931129 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BELGIAN PRIME MINISTER JEANLUC DEHAENE WILL MEET WITH LABOR UNIONS AND EMPLOYERS THIS WEEK TO DISCUSS AN AUSTERITY PLAN FOR REDUCING THE PUBLIC DEFICIT BOOSTING COMPETITIVENESS AND CUTTING UNEMPLOYMENT THE PROGRAM SPARKED BELGIUM'S FIRST NATIONWIDE STRIKE SINCE 1936 THE GOVERNMENT WANTS TO EXPLORE WAYS TO IMPLEMENT OR AMEND THE PLAN APPROVED BY PARLIAMENT LAST WEEK TO FREEZE WAGES CUT COMPANIES' SOCIALSECURITY CONTRIBUTIONS AND THE GOVERNMENT BUDGET AND RAISE TAXES UNIONS WANT SUBSTANTIAL CHANGES AS THE PACKAGE COULD COST THE AVERAGE BELGIAN FAMILY 29 OF ITS INCOME EMPLOYERS ALSO AREN'T ENTHUSIASTIC THE GENERAL STRIKE FRIDAY BY BELGIUM'S TWO MAIN LABOR UNIONS SHUT DOWN INDUSTRY PORTS AND MANY GOVERNMENT OFFICES AND PUBLIC SERVICES SUCH AS TRANSPORTATION PUBLIC TRANSIT MAIL DELIVERY AND SCHOOLS THE EMPLOYERS' FEDERATION ESTIMATED AT 335 MILLION THE COST TO THE NATION FROM THE NATIONAL STRIKE AND TWO OTHER DAYLONG WALKOUTS LAST WEEK IN SEVERAL PROVINCES SWISS VOTERS OVERWHELMINGLY APPROVED REPLACING A NATIONAL SALES TAX WITH A VALUEADDED TAX A PROPOSAL THAT HAD FAILED THREE TIMES IN THE PAST 16 YEARS THE REFERENDUM MEASURE SET THE VAT RATE AT 65 AN INCREASE FROM THE 62 SALES LEVY THE VAT A TAX IMPOSED AT EACH STAGE OF OUTPUT OR TURNOVER WILL APPLY TO 74000 SERVICE BUSINESSES THAT HAVEN'T BEEN SUBJECT TO THE SALES TAX THE GOVERNMENT HAD SOUGHT THE VAT AND THE HIGHER RATE TO HELP EASE THE BUDGET DEFICIT WHICH COULD REACH 469 BILLION NEXT YEAR A TAIWAN COURT IMPRISONED SEVEN BUSINESSMEN FOR ILLEGALLY PROFITING ON A GOVERNMENT CONSTRUCTION PROJECT ANDREW YEN SON OF A FORMER PRESIDENT AND HEAD OF THE STATERUN TANG ENG IRON WORKS WAS SENTENCED TO 15 YEARS FOR MASTERMINDING THE DEAL INVOLVING FIVE FIRMS LIN PINGKUN AGENT FOR THE BROWN & ROOT INTERNATIONAL INC UNIT OF HALLIBURTON CO HOUSTON ALSO GOT 15 YEARS THEY WERE ASKED TO RETURN TO CHINESE PETROLEUM CORP 6 MILLION IN ILLEGAL PROFITS FROM BRIBING OFFICIALS OF THE STATERUN OIL FIRM FOR CONTRACT AWARDS PRISON TERMS FOR OFFICIALS OF A DUTCH FIRM AND CHINESE PETROLEUM AND TWO TAIWAN BUSINESSMEN RANGED FROM 5 TO 12 YEARS UKRAINE ORDERED COMPULSORY AIDS TESTS OF FOREIGNERS WORKING OR STUDYING IN THE FORMER SOVIET REPUBLIC AND ANYONE TESTING POSITIVE FOR HIV WHICH CAUSES THE DISEASE MAY BE EXPELLED THE GOVERNMENT ALSO IS TRYING TO CURB TUBERCULOSIS MALARIA AND DIPHTHERIA THE OUTBREAKS HAVE BEEN ATTRIBUTED TO DECLINING STANDARDS OF LIVING AND HYGIENE SINCE THE USSR COLLAPSED TO COMBAT MALARIA ARRIVALS FROM AFFECTED AREAS PARTICULARLY ASIA WILL BE SUBJECTED TO THOROUGH MEDICAL CHECKS HIGH SCHOOL STUDENTS ACROSS FRANCE PROTESTED CROWDED CLASSROOMS AND SMALL STAFFS THE DEMONSTRATIONS LAST WEEK SOME OF WHICH TURNED VIOLENT FOLLOWED SIMILAR MARCHES BY COLLEGE STUDENTS AND PROTESTS BY WORKERS AGAINST GOVERNMENT AUSTERITY AND PRIVATIZATION POLICIES THE GOVERNMENT FACING A HUGE BUDGET DEFICIT IS RELUCTANT TO INCREASE EDUCATION FUNDING SEPARATELY PARIS SUBWAY AND REGIONAL TRAIN SERVICES WERE SHARPLY REDUCED FRIDAY BY A STRIKE BY UNIONS THAT WANT BIGGER SUBSIDIES FOR PUBLIC TRANSIT PRESIDENT BORIS YELTSIN ORDERED THE RUSSIAN GOVERNMENT TO PAY OFF DEBTS TO FARMS AND ENTERPRISES BY JAN 1 AS RUSSIA HAS SOUGHT TO NARROW ITS GAPING BUDGET DEFICIT IT DELAYED MANY PAYMENTS TO FORMER AND CURRENT STATE INDUSTRIES MINERS AND OTHER WORKERS IN SIBERIA WHO HAVEN'T BEEN PAID FOR TWO MONTHS OR MORE ARE THREATENING STRIKES THE ECONOMICS MINISTRY FEARS HIGHER INFLATION FROM PAYING THE DEBTS WHICH WEREN'T SPECIFIED BUT TOTAL BILLIONS OF RUBLES TO ATTRACT BADLY NEEDED CAPITAL NORTH KOREA FOR THE FIRST TIME WILL ALLOW OPERATIONS BY FOREIGN BANKS THE BANKS WILL BE SUBJECT TO RESTRICTIONS SUCH AS BEING SITUATED IN A SPECIAL FREETRADE ZONE BUT ALSO GET REWARDS BANKS THAT PROMISE TO OPERATE IN NORTH KOREA FOR 10 YEARS WOULD BE EXEMPT FROM CORPORATE TAXES FOR THEIR FIRST YEAR OF PROFITABILITY AND THEIR TAXES IN THE TWO SUBSEQUENT YEARS WOULD BE HALVED THE ECONOMIC LIBERALIZATION MEASURE UNVEILED BY THE NORTH'S OFFICIAL KOREAN CENTRAL NEWS AGENCY WAS THE LATEST IN A SERIES BY THE COMMUNIST COUNTRY BELIEVED TO BE REELING FROM AN ECONOMIC CRISIS EARLIER THIS MONTH NORTH KOREA ALLOWED FOREIGN COMPANIES TO LEASE LAND SOUTH KOREAN AND WESTERN INTELLIGENCE OFFICIALS SAY SERIOUS SHORTAGES OF FOOD FUEL AND OTHER ESSENTIALS IN NORTH KOREA HAVE LED TO UNREST AND SPORADIC RIOTING AND INCREASED THE FLOW OF DEFECTORS TO CHINA ITALY AND FRANCE AGREED TO STUDY WHETHER TO BUILD A HIGHSPEED RAIL LINE THROUGH THE ALPS A PROJECT THAT COULD TAKE 10 YEARS TO COMPLETE AND CREATE 200000 JOBS THE PROPOSED 180MILE LINK WOULD HALVE TRAVEL TIME BETWEEN TURIN AND LYON TO 1 1/2 HOURS SOME IRAQIS IMPOVERISHED BY GLOBAL ECONOMIC SANCTIONS ARE OFFERING TO SELL THEIR KIDNEYS FOR TRANSPLANTS MEDICAL SOURCES SAID ON THE ORGAN MARKET A KIDNEY GOES FOR BETWEEN 100 AND 1000A FORTUNE AS EVEN 100 EXCEEDS A YEAR'S AVERAGE SALARY IN IRAQ 9311290018 931129 BOARD OF CONTRIBUTORS NEEDED A BUDGET POLICY BY HERBERT STEIN WE ARE ENTERING A NEW FEDERAL BUDGET CYCLE AS THE ADMINISTRATION WORKS ON THE BUDGET IT WILL SUBMIT IN JANUARY THIS WILL INITIATE ANOTHER ROUND OF DISCUSSION IN CONGRESS AND AMONG THE PUBLIC IT WILL BE AN OPPORTUNITY FOR THE ADMINISTRATION AND THE REST OF US TO RAISE THE LEVEL OF THINKING ABOUT WHAT THE STANDARDS OBJECTIVES AND PROCEDURES FOR DEALING WITH A BUDGET OF 1 1/2 TRILLION SHOULD BE CERTAINLY THE ADMINISTRATION SHOULD BE ABLE BY THEN TO APPROACH THE SUBJECT IN A MORE MATURE WAY THAN IT DID WHEN IT PRESENTED A BUDGET JUST AFTER ENTERING OFFICE WE USED TO HAVE A STANDARD A BALANCED BUDGET THEN FOR A WHILE WE SEEMED TO HAVE A STANDARD THAT THE BUDGET DEFICIT SHOULD BE BIG ENOUGH TO KEEP THE ECONOMY AT FULL EMPLOYMENT AT TIMES I THOUGHT WE WERE APPROACHING A STANDARD THAT SEEMED TO INCORPORATE THE BEST OF BOTH THESE IDEAS THE STANDARD OF BALANCING THE BUDGET AS IT WOULD BE AT FULL EMPLOYMENT THAT IS ALL GONE WITH THE WIND I DO NOT THINK ONE WILL FIND ANYWHERE A STATEMENT OF WHAT OUR PRESENT POLICY IS BUT ONE MIGHT DEDUCE SOMETHING LIKE THIS FROM THE PRACTICE OF THE PAST DOZEN YEARS THE AMERICAN PEOPLE DO NOT INSIST THAT THE BUDGET BE BALANCED THEY DO HOWEVER LIKE TO THINK THAT THEY AND THEIR REPRESENTATIVES IN THE GOVERNMENT ARE ON THE SIDE OF BALANCING THE BUDGET SO OUR REPRESENTATIVES FOLLOW A POLICY THAT IS SUFFICIENT TO MAKE THEIR CONSTITUENTS BELIEVE THEY ARE FOR BALANCING THE BUDGET OR AT LEAST SUBSTANTIALLY REDUCING THE DEFICIT WHILE IMPOSING THE LEAST POSSIBLE VISIBLE PAIN IN THE FORM OF HIGHER TAXES OR LOWER GOVERNMENT BENEFITS OUT OF THIS WE GET FIVEYEAR DEFICITREDUCING PROGRAMS GRAMMRUDMAN I AND GRAMMRUDMAN II AND THE 1990 BUDGET PACKAGE AND THE 1993 BUDGET PACKAGE BUT THESE PROGRAMS DO NOT CONTAIN ANY COMMITMENT TO SPECIFIC REVENUE OR EXPENDITURE DECISIONS THAT WOULD YIELD THE PROMISED RESULT ABOUT HALFWAY THROUGH THE FIVEYEAR PERIOD IT BECOMES APPARENT THAT THE BUDGET IS FAR OFF THE PROMISED PATH THEN OUR REPRESENTATIVES DO THE WHOLE THING OVER ASSURING VOTERS THAT THEY REALLY ARE ON THE SIDE OF THE BALANCED BUDGET WE WILL PROBABLY BE READY FOR ANOTHER DOSE BY THE END OF 1995 THIS MAY NOT BE THE WORST OF ALL POSSIBLE POLICIES IT DOES OF COURSE LEAVE DEFICITS THAT ALMOST EVERYONE THINKS ARE TOO BIG BUT CONTRARY TO MANY FEARS THE DEFICITS DID NOT PREVENT RECOVERY FROM THE DEEP RECESSION OF 198182 AND APPARENTLY ARE NOT PREVENTING RECOVERY FROM THE MILD RECESSION OF 1990 THEY DID NOT PREVENT A CONSIDERABLE REDUCTION OF THE INFLATION RATE AND THE PUBLIC SEEMS TO BE SATISFIED OR AT LEAST NOT SO DISSATISFIED AS TO TURN OUT OF OFFICE THE GOVERNMENTS THAT BEHAVE LIKE THAT BUT I DO NOT BELIEVE THIS IS A GOOD WAY TO ARRIVE AT THE SIZE OF THE DEFICIT IT LEAVES US CONSTANTLY IN THE POSITION OF FAILING TO ACHIEVE WHAT WE CONSTANTLY SAY IS A HIGHPRIORITY OBJECTIVE NAMELY TO BALANCE THE BUDGET OR GREATLY REDUCE THE DEFICIT THAT PERSISTENT FAILURE AND HYPOCRISY CANNOT BE GOOD FOR THE NATIONAL MORALE THE PRESENT MODE OF BEHAVIOR ABOUT THE BUDGET PROVIDES NO BASIS FOR CONFIDENCE THAT WE WILL NOT YET RUN INTO DEFICITS OF A SIZE AND DURATION THAT WILL BE SERIOUSLY DAMAGING TO THE ECONOMY AND EVEN IF THE PRESENT POLICY DOES CONFORM TO THE PUBLIC'S PREFERENCES NO ONE CAN DENY THAT THE PUBLIC'S PREFERENCES ON THIS SUBJECT ARE TERRIBLY ILLINFORMED DECISIONS ABOUT THE DEFICIT ARE MADE WITHOUT ANY ATTEMPT EVEN TO DESCRIBE WHAT THE CONSEQUENCES OF THE DECISIONS MIGHT BE FOR EXAMPLE EARLIER THIS YEAR PRESIDENT CLINTON PROPOSED A 500 BILLION DEFICIT REDUCTION PACKAGE HE NEVER EXPLAINED WHY IT WAS 500 BILLION RATHER THAN 250 BILLION OR 750 BILLION HE NEVER TRIED TO TELL US WHAT THE BENEFITS OF A 500 BILLION PACKAGE MIGHT BE AND WHAT THE COSTS OF THE TAX INCREASES AND EXPENDITURE CUTS NEEDED TO BRING ABOUT THE 500 BILLION DEFICIT REDUCTION MIGHT BE NOR DID HE TRY TO TELL US WHY HE THOUGHT THAT THE BENEFITS WOULD EQUAL OR EXCEED THE COSTS I DO NOT THINK SUCH QUESTIONS WERE EVER RAISED IN CONGRESS FIVE HUNDRED BILLION DOLLARS SEEMS TO BE ACCEPTED AS THE SIZE IN WHICH DEFICIT REDUCTION PACKAGES COME THESE DAYS BIG ENOUGH TO LOOK SERIOUS BUT NOT SO BIG AS TO SEEM OUTLANDISH IF IT IS TRUE THAT THE AMERICAN PEOPLE AT LEAST TOLERATE WHAT IS GOING ON IT IS ALSO TRUE THAT THEY DON'T HAVE THE FAINTEST IDEA OF THE CONSEQUENCES AND NEITHER DO MOST OF THEIR DECISIONMAKERS IN THE GOVERNMENT THERE ARE PEOPLE WHO WILL SAY THAT WE CAN AND SHOULD ESTABLISH A POLICY OF CONTINUOUSLY BALANCING THE BUDGET A PROPOSAL FOR A CONSTITUTIONAL AMENDMENT TO ENFORCE THAT WILL COME UP AGAIN FOR THE UMPTEENTH TIME NEXT YEAR THE ARGUMENTS AGAINST THE BALANCED BUDGET AMENDMENT ARE CLEAR AND STRONG BUT WHEN ALL THAT IS SAID ONE STILL HAS TO ASK THE OLD QUESTION COMPARED TO WHAT DO THOSE WHO LIKE THE PRESIDENT AND ME OPPOSE THE AMENDMENT HAVE A BETTER ALTERNATIVE THE EARLIER POSTWAR STANDARDS WHETHER FINETUNING OR FULLEMPLOYMENT BALANCE WERE AIMED AT THE CONCERN OF AN EARLIER PERIOD WHICH WAS MAINLY FOR THE STABILITY OF THE ECONOMY NOW WE KNOW THAT THE BUDGET DEFICIT OR SURPLUS HAS OTHER OBJECTIVES TO SERVE TODAY WE NEED A STANDARD THAT REFLECTS OUR PRESENT CONCERN WITH THE GROWTH OF THE NATIONAL INCOME AND ITS ALLOCATION AMONG USES AND PERSONS OF THIS GENERATION AND FUTURE ONES FOUR YEARS AGO I WROTE A BOOK GOVERNING THE 5 TRILLION ECONOMY IN WHICH I TRIED TO DESCRIBE A WAY OF THINKING AND A PROCEDURE THAT WOULD YIELD A BUDGET DEFICIT OR SURPLUS REFLECTING EXPLICIT CONSIDERATION OF REAL COSTS AND BENEFITS AND WITHOUT A PRIOR ASSUMPTION THAT THE OPTIMUM SIZE OF THE DEFICIT IS ZERO OTHER ECONOMISTS INCLUDING LAURENCE KOTLIKOFF OF BOSTON UNIVERSITY AND ROBERT EISNER OF NORTHWESTERN ALSO HAVE DEVELOPED MORE FUNCTIONAL STANDARDS OF BUDGET POLICY ALTHOUGH THEIR PROPOSALS DIFFER FROM MINE MY PURPOSE HERE IS NOT TO PLUG MY PROPOSALS FOR A BUDGETARY STANDARD OR ANYONE ELSE'S MY POINT IS THAT SIMPLY TO REJECT THE BUDGETBALANCING AMENDMENT IS NOT ENOUGH WE SHOULD ALSO RECOGNIZE THE RISKS OF OUR PRESENT STANDARD OR LACK OF A STANDARD AND TRY TO FORMULATE SOMETHING BETTER SOMETIMES WHEN I HAVE TRIED TO DIRECT THE ATTENTION OF PEOPLE TO THE NEED FOR A BUDGETARY STANDARD THEY HAVE REPLIED OH YES THAT'S VERY INTERESTING BUT WE KNOW WHAT THE MAIN PROBLEM IS WHICH IS TO REDUCE THE DEFICIT AND WE DON'T WANT TO DISTRACT ATTENTION FROM THAT BY BRINGING UP LONGERRUN AND MORE GENERAL CONSIDERATIONS THE FACT IS HOWEVER THAT WE ARE NOT BALANCING THE BUDGET OR REDUCING THE DEFICIT VERY MUCH THE NOTION OF BALANCE FIRST AND STANDARD LATER IS MISTAKEN BALANCING THE BUDGET IS A FLAG THAT EVERYONE FEELS OBLIGED TO SALUTE BUT NO ONE FEELS OBLIGED TO FOLLOW PROBABLY WE WILL NOT MAKE HEADWAY TOWARD BALANCING THE BUDGET IF THAT IS THE DESIRABLE GOAL UNTIL WE CAN SHOW HOW THAT IS REQUIRED BY SOME GENERAL POLICY WHOSE PRACTICAL UTILITY WE CAN UNDERSTAND AND EXPLAIN THE IDEA OF ESTABLISHING A FUNCTIONAL STANDARD OF BUDGET POLICY IS OBVIOUSLY NOT HIGH ON THE NATIONAL AGENDA ONE CANNOT EXPECT THE ADMINISTRATION TO PUSH IT ADMINISTRATIONS DO NOT LIKE SOPHISTICATED BUDGET STANDARDS THAT CAN SERVE ONLY TO LIMIT THEIR FREEDOM OF ACTION PRESIDENT REAGAN AND PRESIDENT BUSH DID SUPPORT THE BALANCED BUDGET AMENDMENT BUT I THINK THAT WAS LESS A LIMIT THEY EXPECTED TO LIVE WITH THAN A WAY TO GET GOLD STARS WITH A FRACTION OF THE VOTERS WHILE FASTENING BLAME FOR DEFICITS ON CONGRESS IF THE WAY WE THINK ABOUT DEFICITS AND DETERMINE THEIR SIZE IS TO BE SUBSTANTIALLY CHANGED THE INITIATIVE WILL PROBABLY HAVE TO COME FROM OUTSIDE THE GOVERNMENT THAT WOULD NOT BE UNUSUAL MUCH OF THE IMPETUS FOR REFORM OF FEDERAL BUDGETING IN THE PAST HAS COME FROM THE PRIVATE SECTOR STARTING WITH THE DRIVE FOR AN EXECUTIVE BUDGET MORE THAN 80 YEARS AGO WE MAY YET GET TIRED OF OUR FIVEYEAR BUDGET PACKAGES THAT START WITHOUT PRINCIPLE AND END WITHOUT RESULT AND ALSO OF OUR BIENNIAL WRESTLE WITH THAT ATTRACTIVE NUISANCE THE BALANCED BUDGET AMENDMENT AND GET DOWN TO SERIOUS THOUGHT ABOUT HOW TO MAKE BUDGETARY DECISIONS THAT SERVE TODAY'S REAL NATIONAL OBJECTIVES A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW 9311290017 931129 TECHNOLOGY BRIEF SCIENTIFICATLANTA INC DEAL IS SET WITH U S WEST IN INTERACTIVECABLE PROJECT SCIENTIFICATLANTA INC SAID IT WILL DESIGN AND BUILD TERMINALS TO BE USED BY U S WEST INC IN THAT COMPANY'S PLANNED INTERACTIVETELEVISION TRIAL IN OMAHA NEB THE TRIAL SCHEDULED TO REACH 100000 CUSTOMERS BY THE END OF NEXT YEAR STILL MUST BE APPROVED BY THE FEDERAL COMMUNICATIONS COMMISSION THE TERMINALS TO BE PLACED ON TOP OF TELEVISION SETS WILL PERMIT SERVICES SUCH AS VIDEO ON DEMAND INTERACTIVE GAMES AND HOME SHOPPING SCIENTIFICATLANTA SAID THE ATLANTABASED MAKER OF ELECTRONIC INSTRUMENTS AND COMMUNICATION EQUIPMENT SAID THE TERMINALS WILL FEATURE TECHNOLOGY USED IN 3DO CO'S RECENTLY INTRODUCED INTERACTIVE MULTIPLAYER AS WELL AS ITS OWN VIDEOCOMPRESSION AND BROADBAND TECHNOLOGY IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE SCIENTIFICATLANTA SHARES CLOSED AT 31875 UP 375 CENTS 9311290016 931129 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT OHIO PUBLIC FACILITIES COMMISSION 120 MILLION OF HIGHEREDUCATION CAPITAL FACILITIES REVENUE BONDS VIA COMPETITIVE BID NEW JERSEY 13 BILLION OF FISCAL 1994 SERIES A B AND C TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID LOS ANGELES COMMUNITY REDEVELOPMENT AGENCY 285 MILLION OF BONDS FOR THE BUNKER HILL PROJECT INCLUDING 215 MILLION SERIES H TAXALLOCATION REFUNDING BONDS AND 70 MILLION TAXABLE SERIES I TAXALLOCATION BONDS VIA COMPETITIVE BID CALIFORNIA HOUSING FINANCE AGENCY 1655 MILLION HOMEMORTGAGE REVENUE BONDS VIA A MERRILL LYNCH GROUP HOLY CROSS HEALTH SYSTEM CORP 1399 MILLION OF BONDS FOR HOSPITALS IN CALIFORNIA OHIO AND MARYLAND VIA A JP MORGAN SECURITIES INC GROUP HOUSTON LIGHT & POWER CO 1002 MILLION OF BONDS VIA A CS FIRST BOSTON GROUP SAN JOSE CALIF 688 MILLION OF TAXALLOCATION BONDS VIA A MERRILL LYNCH & CO GROUP SACRAMENTO COUNTY SANITATION DISTRICTS FINANCING AUTHORITY CALIF 225 MILLION OF BONDS VIA A MERRILL LYNCH GROUP TEXAS WATER DEVELOPMENT BOARD 125 MILLION OF SENIORLIEN REVENUE BONDS FOR THE STATE REVOLVING FUND VIA A GOLDMAN SACHS & CO GROUP 9311290015 931129 BUSINESS BRIEF FUJI HEAVY INDUSTRIES LTD DEMAND FOR LEGACY AUTOS PROMPTS PRODUCTION INCREASE FUJI HEAVY INDUSTRIES LTD AN AUTO MAKER WHICH MAKES SUBARUBRAND CARS WILL INCREASE PRODUCTION OF ITS LEGACY CARS IN DECEMBER TO MEET STRONG DEMAND A COMPANY SPOKESMAN SAID THE TOKYOBASED COMPANY WILL RUN ASSEMBLY LINES FOR THE LEGACY AT ITS YAJIMA PLANT ON FOUR SATURDAYS IN DECEMBER THAT ARE JAPANESE HOLIDAYS THE LEGACY WHICH HAD ITS JAPANESE DEBUT OCT 20 HAS RECEIVED ORDERS TOTALING 11000 UNITS IN THE FIRST MONTH SHARPLY MORE THAN THE 5500 UNITS THAT THE COMPANY EXPECTED THE LATEST MOVE BY FUJI CONTRASTS WITH THE RECENT DOWNWARD TREND IN JAPAN'S CAR INDUSTRY WHERE SUCH MAKERS AS NISSAN MOTOR CO AND MAZDA MOTOR CORP HAVE MOVED TO FURLOUGH WORKERS TO CUT PRODUCTION OCTOBER PRODUCTION WAS DOWN 16 FROM A YEAR EARLIER FOR THE 13TH MONTH IN A ROW OF YEARONYEAR DECLINE AND THE SHARPEST DROP IN TWO DECADES SALES FELL 11 IN OCTOBER THE NOVEMBER SALES TALLY IS DUE OUT NEXT WEEK 9311290014 931129 RETAILING INSIDE SANTA'S BAG SOME BIZARRE GIFTS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL FROM 75000 ELECTRIC CARS TO BATTERYPOWERED NOSEHAIR TRIMMERS A MINDBENDING ARRAY OF CHRISTMAS GIFTS BECKONS FROM THE GLOSSY PAGES OF CATALOGS MORE THAN 10000 DIFFERENT CATALOGS ARE MAILED OUT ANNUALLY AND NO TASTE HOBBY OR YEARNING SEEMS TOO IDIOSYNCRATIC FOR CATALOGERS PET FURNITURE BY ABETA IN GREENSBORO NC SELLS WOODEN CAT PLAYGROUNDS THE FAMILY SECURITY AND SELFPROTECTION CATALOG IN WASHINGTON DC SELLS HOTPEPPER SPRAYS SIMPLY WHISPERS IN PEMBROKE MASS SPECIALIZES IN EARRINGS FOR SENSITIVE EARS ANYONE WHO DOUBTS THE VITALITY OF AMERICAN INGENUITY NEED ONLY FLIP THROUGH A FEW CATALOGS FOR REASSURANCE WE'VE CULLED THROUGH THE JUMBLE OF CATALOG GOODS TO FIND SOME STANDOUTS GIFTS SO DOGGEDLY WHIMSICAL AS TO ACHIEVE A CERTAIN GENIUS ALL THEIR OWN A FOOTSTOOL TAKES ON A WHOLE NEW MEANING IN THE HANDS OF THE FOLKS AT MODERN FARM CATALOG IN CODY WYO THE 6995 COWBOY TABLE IS MADE FROM DISCARDED BLUE JEANS AND COWBOY BOOTS PICKED UP BY A FELLA IN MONTANA WHO GOES AROUND TO USEDCLOTHING STORES SAYS PAUL CLYMER CATALOG MANAGER HE ADMITS THERE ARE CUSTOMERS WHO COULD BE PUT OFF BY WHAT LOOKS LIKE TAXIDERMY RUN AMOK HUMAN LEGS SEVERED AT THE SHINBONE SOME MIGHT THINK ITS A LITTLE GHOULISH BUT IT'S A GOOD PLACE TO SET A BEER OR AN ASHTRAY HE SAYS VERY STURDY CATALOGS ARE AWASH IN SLIPPERS BUT NONE SO PICTURESQUE AS THESE 1999 BUDWEISERCAN REPLICAS BILLED AS THE KING OF SLIPPERS BY THE HANOVER HOUSE CATALOG IN HANOVER PA WE SUSPECT THEY'LL FIND HOMES IN DORMITORIES ACROSS AMERICA THOUGH HANOVER CLAIMS MOM AND DAD WILL LOVE THEM TOO THEY ARE WARM AND FUZZY ON THE INSIDE SAYS ROBIN SHELDON CATALOG DIRECTOR AND THEY WON'T CATCH FIRE THEY MAY LOOK LIKE POTATOES WITH LEGS BUT THEY ARE PAINSTAKINGLY CRAFTED DUCK DECOYS TO ADORN YOUR RUMPUSROOM CEILING FOUND IN THE ORVIS CATALOG BASED IN MANCHESTER VT THESE 35 AND 45 DUCKS ACTUALLY HALFDUCKS APPEAR TO BE PLOWING THROUGH THE CEILING AS THOUGH BREAKING THE SURFACE OF A POND THE EFFECT WHICH ORVIS SPOKESWOMAN PAT THEODOROS TERMS '60S STYLE IS SAID TO BE A HIT WITH DENTISTS AND PEDIATRICIANS WHOSE PATIENTS SPEND A LOT OF TIME ON THEIR BACKS IT'S BETTER THAN A POSTER OF A KITTEN SHE SAYS FROM CELEBRATION FANTASTIC CATALOG IN SAN FRANCISCO COMES A 45 BOTTLE TOTE AIMED AT TRENDIES WHO LUG THEIR EVIAN WATER FROM 12STEP MEETINGS TO SCREENINGS FASHIONED FROM ITALIAN LEATHER WITH BRASS CLOSURES IT ADJUSTS TO HOLD BOTTLES OF VARIOUS SIZES KATHLEEN MAHONEY FOUNDER AND COPRESIDENT OF CELEBRATION CAN'T NAME ANY CELEBRITIES WHO CARRY THE TOTE YET THE EPICENTER OF DEMAND FOR THE TOTE IS LOS ANGELES WHERE STAYING THIRSTY IS FASHIONABLE MODERN TECHNOLOGY NOW MAKES POSSIBLE GOLFBALL PHOTO PORTRAITURE FOR 40 PARAGON GIFTS OF WESTERLY RI OFFERS TO PRINT ANY PHOTOGRAPH IN BLACK AND WHITE ON A DOZEN SPALDING GOLF BALLS BY THIS TIME CHRISTMAS DELIVERY IS NOT POSSIBLE SAYS PARAGON THE BALLS ARE POPULAR WITH WOMEN GOLFERS WHO TYPICALLY HAVE THEIR HUSBANDS' PHOTOS IMPRINTED ON THE DIMPLED BALLS THAT'S PARAGON'S PRESIDENT JOHN MCCORMICK IN THE CATALOG SOME HAVE ORDERED BILL AND HILLARY RODHAM CLINTON BALLS OR BABYPICTURE BALLS THAT SEEMS SORT OF STRANGE MUSES A BUYER FOR PARAGON WOULD YOU LIKE TO KNOCK YOUR KID AROUND EXIMIOUS OF LONDON BASED IN NORTHFIELD ILL DEALS IN FINE THINGS FOR THE MASTERPIECE THEATER SET SO IT'S NO SURPRISE THAT THIS 1450 CHEWINGGUM DISPENSER COMES IN FINE BURGUNDYRED OR BLACK LEATHER BY TUGGING A TINY CORD SOPHISTICATES CAN EJECT UP TO SEVEN STICKS OF GUM IT'S NOT FOR THE BUBBLEGUM FANCIER SAYS SUZANNE G HARTIGAN THE PRESIDENT OF EXIMIOUS IT'S FOR THE PERSON WHO WANTS A MORE ELITIST WAY OF CARRYING GUM HERE'S A POWER ACCESSORY FOR MINIMOGULS SIPAPHONE FROM MILES KIMBALL OF OSHKOSH WIS COULD EASILY PASS FOR A REAL CELLULAR PHONE EXCEPT THAT ITS ANTENNA CONVERTS TO A STRAW IN FACT IT'S A 16OUNCE DRINKING BOTTLE SIPAPHONE WAS CREATED BY CHICAGOBASED TAICO DESIGN PRODUCTS WHOSE OWNER LEON LEVY GOT THE IDEA AFTER SPENDING SO MUCH TIME ON HIS CAR PHONE THOUGH THE 219 NOVELTY IS AIMED AT THE PLAYGROUND SET SIPAPHONE TURNS OUT TO BE A FAVORITE OF BUSINESSMEN THERE ARE ALSO SIGNS THAT THEY BUY IT FOR THEIR KIDS SAYS SPOKESPERSON LISA MERTINS SHE SAYS SOME HOLLYWOOD STUDIOS USE IT AS A PROMOTIONAL TRINKET THERE ARE TIMES WHEN A DOG IS MORE THAN A DOG IT ALSO CAN BE A BILLBOARD FOR GOOD TASTE AND STATUS CONSIDER BURBERRY'S NYLON DOG JOGSUIT FOUND EXCLUSIVELY IN THIS YEAR'S SAKS FIFTH AVENUE HOLIDAY FOLIO CATALOG EVEN IF YOUR DOG ISN'T A JOGGER IT WILL BE SMARTLY TURNED OUT IN CLASSIC BURBERRY PLAID 65 FOR LARGE SIZES 55 FOR SMALL SAKS HAS RECEIVED MORE THAN 100 ORDERS ALREADY IT'S A DISCERNING CUSTOMER WHO WANTS IT SAYS A SAKS SPOKESPERSON IMPORTED FROM ENGLAND WHERE DOGS ARE GODS THINK OF IT BLACK SATIN AN AUTHENTIC STARFLEET COMMAND SYMBOL ON YOUR CHEST AND ON YOUR BACK THE LOGO OF STAR TREK THE NEXT GENERATION IT'S ONE MORE PIECE FROM THE MERCHANDISING TROUGH OF THE LATEST STAR TREK TV SERIES A PHENOMENON THAT JUST WON'T QUIT FOR SOME THIS JACKET FROM THE ST PAULBASED WIRELESS CATALOG SCREAMS GET A LIFE BUT FOR DIEHARD TREKKIES THE 8950 JACKET AVAILABLE ONLY IN ADULT SIZES MAKES A STATEMENT THE PEOPLE WHO ORDER IT AREN'T DELUSIONAL INSISTS GRANT DAVIES A WIRELESS QUALITYASSURANCE SUPERVISOR BUT THEY WANT TO HAVE THE FEELING THAT THEY ARE CREW MEMBERS OF CAPT PICARD'S SHIP BAD TIES ARE A TIMEWORN CHRISTMAS TRADITION HERE'S A WAY TO DO IT YOURSELF OR BETTER YET TO GET YOUR CHILD TO DO IT FOR YOU VIRGINIA BEACHBASED LILLIAN VERNON OFFERS A 1298 KIT THAT INCLUDES AN ALLCOTTON WHITE TIE AND FOUR PERMANENT NONTOXIC MARKERS IN RED GREEN BLUE AND ORANGE THE PRIMARY MARKET IS FOR LITTLE KIDS TO MAKE TIES FOR THEIR DADDIES OR GRANDDADS SAYS DAVID HOCHBERG VICE PRESIDENT AT LILLIAN VERNON HE NOTES THERE IS A SECONDARY MARKET OF PAINTERS GRAPHIC ARTISTS AND DESIGNERS WHO DABBLE IN HABERDASHERY SAYS MR HOCHBERG IN A SOCIETY OF MASSPRODUCED CONSUMER GOODS THIS IS THE ULTIMATE MAKEYOUROWN STATEMENT MAKEYOUROWNTHING PRODUCT AS ART GOES IT'S A BARGAIN NO WONDER THAT THE CELEBRATION FANTASTIC CATALOG'S HISTORY OF CEREAL RANKS AMONG ITS TOP 20 BESTSELLING ITEMS ENCLOSED IN A PINE FRAME ARE A DOZEN BITESIZED EXAMPLES OF THE EVOLUTION OF CEREAL FROM KIX IN 1937 THROUGH THE INTRODUCTION OF FRUIT LOOPS AND COCOA PUFFS TO COOKIE CRISP IN 1977 AT 58 IT'S CHEAP FOR A FRAMED PIECE OF ART SAYS CATALOG FOUNDER KATHLEEN MAHONEY IT TIES INTO THE WHOLE NOSTALGIA KICK COLLECTORS SHOULD KNOW THAT THESE AREN'T VINTAGE CEREAL TIDBITS THE CREATOR JOSEPH LAWRENCE ALSO CRAFTED HISTORY OF PASTA 9311290013 931129 INTERNATIONAL COLOSIO IS CHOSEN BY RULING PARTY AS CANDIDATE FOR MEXICO PRESIDENT BY DIANNE SOLIS AND PAUL B CARROLL STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY THE RULING PARTY SAID YESTERDAY THAT ITS PRESIDENTIAL CANDIDATE IS LUIS DONALDO COLOSIO WHO IS EXPECTED TO CONTINUE ECONOMIC POLICIES WHILE INCREASING SOCIAL SPENDING AND POSSIBLY UNDERTAKING SOME POLITICAL REFORM MR COLOSIO MINISTER FOR SOCIAL DEVELOPMENT IS A VIRTUAL SHOOIN AS PRESIDENT BECAUSE THE RULING PARTY HAS WON EVERY ELECTION FOR MORE THAN 60 YEARS AS THE NEW LEADER OF A GENERATION OF TECHNOCRATS MAINLY EDUCATED AT MAJOR US UNIVERSITIES MR COLOSIO IS EXPECTED TO CONTINUE THE FREEMARKET POLICIES THAT HAVE PRODUCED SUCH A STARTLING TURNAROUND IN MEXICO'S ECONOMY AND IN ITS ATTITUDE TOWARD FOREIGN INVESTMENT DURING PRESIDENT CARLOS SALINAS DE GORTARI FIVEYEAR TENURE MR COLOSIO WAS A SENIOR AIDE TO MR SALINAS IN THE MID1980S WHEN MR SALINAS WAS BUDGET MINISTER AND WAS DEVELOPING MANY OF HIS ECONOMIC IDEAS MR COLOSIO HAS FOR INSTANCE STRONGLY SUPPORTED THE NORTH AMERICAN FREE TRADE AGREEMENT FINANCE MINISTER PEDRO ASPE THE FAVORITE CANDIDATE ON WALL STREET BECAUSE OF HIS HARDLINE FREEMARKET IDEAS QUICKLY PRAISED MR COLOSIO AS A SPLENDID CHOICE AS PRESIDENTIAL CANDIDATE FOR THE RULING INSITUTIONAL REVOLUTIONARY PARTY OR PRI MR ASPE SAID MR COLOSIO KNOWS THOROUGHLY THE ECONOMIC AND POLITICAL SITUATION OF THE COUNTRY THE 43YEAROLD MR COLOSIO IS HOWEVER EXPECTED TO INCREASE ATTENTION ON SOCIAL SPENDING TO HELP THE MILLIONS OF POOR MEXICANS MR COLOSIO WHO HAS A THICK MOP OF CURLS AND SPEAKS IN A POWERFUL CADENCE HAS BEEN IN CHARGE OF IMPLEMENTING THE WIDELY POPULAR ANTIPOVERTY PROGRAM SOLIDARITY OVER THE PAST TWO YEARS THE FEDERAL GOVERNMENT PROVIDES MONEY TO COMMUNITIES FOR BRIDGES WATER PROJECTS OR OTHER IMPROVEMENTS IF RESIDENTS DO THE WORK MR COLOSIO IS FROM A MORE HUMBLE BACKGROUND THAN MANY OF HIS RIVALS FOR THE PRESIDENCY HE IS THE SON OF A RANCHER FROM THE STATE OF SONORA ACROSS FROM ARIZONA AND NEEDED SCHOLARSHIPS FOR MANY OF THE SCHOOLS HE ATTENDED COLOSIO IS SALINAS WITH A SOCIAL TWIST SAID MAURO LEOS A VICE PRESIDENT AT CEIMEXWEFA AN ECONOMIC CONSULTING FIRM WITH LINKS TO THE UNIVERSITY OF PENNSYLVANIA MR COLOSIO IS SEEN AS HAVING THE POLITICAL SKILLS TO REFORM THE ELITIST MEXICAN POLITICAL SYSTEM BUT THE POSSIBILITY OF REFORM MAY BE WISHFUL THINKING GIVEN THAT THE PRI DOMINATES THE POLITICAL LANDSCAPE AND GIVEN THAT SO MANY PEOPLE IN THE PARTY WILL FIGHT TO AVOID GIVING UP THE MONEY AND PERKS THAT COME WITH THEIR POSITIONS BUT THE HOPE IN MEXICO HAS BEEN THAT WHILE MR SALINAS HAS MANAGED A MIRACULOUS OPENING OF THE ECONOMY HIS SUCCESSOR WOULD ATTEMPT SIMILAR CHANGES IN THE POLITICAL STRUCTURE AND MR COLOSIO WHO WAS A REFORMIST WHILE PRESIDENT OF THE PRI IN THE LATE 1980S WAS CONSIDERED TO BE THE CANDIDATE WITH THE STRONGEST INCLINATION TOWARD POLITICAL CHANGE IN HIS ACCEPTANCE SPEECH MR COLOSIO PLEDGED TO PERFECT OUR DEMOCRACY WHILE SUPPORTERS CHANTED HARD HARD HARD A SLOGAN POPULAR WITH THE MEXICAN LEFT DURING THE 1960S STUDENT MOVEMENT MR COLOSIO ALSO SEEMS TO HAVE THE POLITICAL SKILLS AND ENOUGH BACKING FROM OTHER SENIOR CABINET MINISTERS TO HOLD THE RULING PARTY TOGETHER THAT IS CRUCIAL BECAUSE IN A SYSTEM SUCH AS MEXICO'S WHERE A CANDIDATE IS CHOSEN IN SECRET LOSERS HAVE BOLTED THE PARTY AND DISRUPTED THE SYSTEM IN 1988 FOR INSTANCE CUAUHTEMOC CARDENAS LEFT THE PRI AND FORMED A PARTY THAT MANY BELIEVE WOULD HAVE WON THE PRESIDENTIAL ELECTION IF NOT FOR FRAUD COLOSIO IS PROBABLY THE ONLY ONE WHO WOULDN'T CAUSE ANY MAJOR FRACTURE IN THE PRI SAID MEXICAN COLUMNIST RAYMUNDO RIVA PALACIO MR COLOSIO ALSO MAY BE THE MOST ELECTABLE OF THE POSSIBLE PRI CANDIDATES BECAUSE HE HAS BEEN STUMPING THE COUNTRY FOR TWO YEARS WHILE HANDING OUT FEDERAL MONEY THROUGH THE SOLIDARITY PROGRAM ADOLFO AGUILAR A SPOKESMAN FOR THE MAIN OPPOSITION CANDIDATE THE LEFTIST MR CARDENAS SAID THE STATE COMMITTEES SET UP TO DECIDE SOLIDARITY'S SPENDING PRIORITIES ARE NOW GOING TO BECOME CAMPAIGN COMMITTEES MR COLOSIO GETS HIS TECHNOCRATIC BACKGROUND MAINLY THROUGH HIS EDUCATION INCLUDING A MASTER'S DEGREE IN URBAN DEVELOPMENT FROM THE UNIVERSITY OF PENNSYLVANIA AND THROUGH HIS ASSOCIATION WITH MR SALINAS HIS POLITICAL CREDENTIALS COME FROM A WIDE ARRAY OF JOBS INCLUDING A STINT AS A SENATOR AND AS MR SALINAS' CAMPAIGN MANAGER IN ADDITION TO JOBS IN THE BUDGET MINISTRY AND AS PRI HEAD THE NAMING OF THE PRI CANDIDATE HAD BEEN DELAYED UNTIL THE NAFTA QUESTION WAS RESOLVED THE PARTY THEN ANNOUNCED THAT A CANDIDATE WOULDN'T BE NAMED UNTIL DECEMBER OR JANUARY BUT THERE WAS SOME SPECULATION THAT MR SALINAS WHO BY TRADITION IS WIDELY SEEN AS HAVING THE SOLE AUTHORITY TO DECIDE WHO SUCCEEDS HIM MOVED UP THE ANNOUNCEMENT BECAUSE OF AN IMPENDING VISIT BY US VICE PRESIDENT AL GORE THE SPECULATION IN NEWSPAPERS HERE WAS THAT MR GORE MIGHT BE TRYING TO INFLUENCE THE SELECTION OF THE PRI CANDIDATE AND INFLUENCE BY THE US IS FEARED ENOUGH THAT ONE NEWSPAPER EVEN DUBBED THE VICE PRESIDENT HERNAN GORE A TAKEOFF ON HERNAN CORTEZ THE SPANISH CONQUISTADOR 9311290012 931129 WORLD STOCK MARKETS TOKYO STOCKS ARE CONTINUING THEIR FREE FALL BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S STOCK MARKET FELL TO A NEW LOW FOR THE YEAR PLUNGING 60826 POINTS OR MORE THAN 3 TO 1611811 MONDAY MORNING LEAVING BRUISED INVESTORS WONDERING WHEN THE CARNAGE WILL END JAPANESE INVESTORS HAVE SEEN THE NIKKEI STOCK AVERAGE LOSE MORE THAN 20 DURING THE PAST FOUR WEEKS AND THERE ISN'T MUCH OF A CONSENSUS WHERE THE NEXT BOTTOM MAY BE TRADING HAS BEEN A LITTLE PANICKY SAID MASANORI HOSHINA A SALESMAN AT COSMO SECURITIES CO PEOPLE ARE LOSING THEIR MEASURE OF THE MARKET HE SAID WITH MONDAY'S SESSION THE NIKKEI HAS FALLEN MORE THAN 1000 POINTS IN THE PAST TWO TRADING DAYS AT CURRENT LEVELS THE NIKKEI IS DOWN ABOUT 5 FROM ITS START FOR THE YEAR THE ONLY MAJOR MARKET TO BE SO LACKLUSTER MEANTIME TRADERS ARE BRACING FOR MORE SELLING THIS WEEK AHEAD OF THE EXPIRATION OF A KEY DECEMBER FUTURES CONTRACT THE TAILSPIN APPEARED TO ACCELERATE IN MONDAY'S OPENING TRADING VOLUME WAS BRISK ON FRIDAY STOCKS FELL 49655 OR 3 DURING LAST WEEK THE NIKKEI INDEX FELL 121482 POINTS AND TUESDAY WAS A HOLIDAY UNTIL RECENT DAYS MANY INVESTORS HOPED THE NIKKEI WOULD SOMEHOW MANAGE TO TRADE ABOVE 17000 INSTEAD WHILE THE WORLD'S OTHER MAJOR STOCK MARKETS DALLY WITH ALLTIME HIGHS JAPANESE STOCKS SEEM HEADED FOR A FOURTH CONSECUTIVE ANNUAL DOWNTURN THERE COULD STILL BE A REBOUND ESPECIALLY IF THE GOVERNMENT INTERVENES TO SUPPORT PRICES BUT SO FAR THE GOVERNMENT HASN'T THE MARKET HAS BEEN FALLING BECAUSE OF A COMBINATION OF WIDESPREAD PESSIMISM ABOUT THE FUTURE OF THE JAPANESE ECONOMY GOVERNMENT FIXATION ON POLITICAL REFORM RATHER THAN ECONOMIC STIMULUS AND ARBITRAGE SELLING AHEAD OF A NEW AND UNTESTED STOCKINDEX CONTRACT THE MARKET RECENTLY ALSO HAS SEEN HEAVY SELLING OF JAPANESE BANK SHARES THIS IS AN OMINOUS DEVELOPMENT BECAUSE THE BANKS WHICH HAVE BEEN REPORTING POOR EARNINGS FOR THE SIX MONTHS ENDED SEPT 30 ARE AT THE CENTER OF JAPAN'S CROSSSHAREHOLDING SYSTEM WHICH CONTROLS ABOUT 40 OF THE STOCKS IN JAPAN IF THEY FALL THIS CAN ENCOURAGE WIDESPREAD SELLING OF STOCKS IT WAS A BANKSTOCK TAILSPIN THAT TOOK THE NIKKEI TO A LOW OF 14309 IN AUGUST 1992 THAT PLUNGE ENDED WHEN JAPAN'S FINANCE MINISTRY DECLARED EMERGENCY STEPS IN THE FACE OF WHAT AN OFFICIAL CALLED THE WORST FINANCIAL CRISIS IN JAPAN SINCE THE WAR THE MINISTRY ISN'T SO GRAVE ABOUT MATTERS YET ON FRIDAY FINANCE MINISTER HIROHISA FUJII SAID IT WOULD BE INAPPROPRIATE FOR THE GOVERNMENT TO INTERVENE IN THE MARKET HARDLY ANYBODY IN THE MARKET SEEMED TO AGREE IT'S THE SAME AS AUGUST LAST YEAR PEOPLE ARE AFRAID THERE'S NO BOTTOM TO THE MARKET SAID SHIGERU AKIBA HEAD OF YEN EQUITY SALES AT UBS SECURITIES CO HE SAID THE GOVERNMENT WOULD PROBABLY LEGISLATE MORE MONEY TO BUY STOCKS THIS STRATEGY WORKED LAST YEAR AS EARLY AS THIS WEEK FOREIGN INVESTORS MAY ALSO BE EXPECTING A GOVERNMENT BAILOUT TO RAISE STOCK PRICES FOREIGNERS HAVE BEEN MODEST NET BUYERS OF JAPANESE STOCKS OVER THE PAST TWO WEEKS SINCE MOST INTERNATIONAL INVESTMENT FUNDS HAVE LONG BEEN UNDERWEIGHTED IN JAPANESE STOCKS HOWEVER THE PURCHASES COULD REPRESENT VERY MODEST BARGAINHUNTING THE GOVERNMENT MAY NOT FEEL ANY STRONG NEED TO COME TO THE AID OF THE MARKET SOON DAMAGE TO CORPORATE AND JAPANESE BANK PORTFOLIOS FROM PUMMELED STOCK PRICES WILL ONLY BE FELT ON MARCH 31 WHEN THE COMPANIES CLOSE THEIR BOOKS FOR THE END OF THE FISCAL YEAR THE MOST RECENT TWO BIG UPWARD MOVES IN TOKYO STOCKS TOOK PLACE IN MARCH AND SEPTEMBER THE HALFWAY POINT IN THE FISCAL YEAR BEFORE THE MARCH RALLY HOWEVER THE GOVERNMENT SPENT ABOUT FOUR MONTHS PROPPING UP THE MARKET THROUGH SELECTIVE STOCK PURCHASES ANALYSTS BELIEVE ANY NEW MONEY THIS WEEK WILL PROBABLY GO STRAIGHT TO THE ARBITRAGERS WHO WILL INTENSIFY THEIR SELLING BEFORE A DEC 10 FUTURESCONTRACT EXPIRATION SELLING THIS WEEK IS GOING TO BE A WHOPPER SAID KATHY MATSUI STRATEGIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN INC THE ARBITRAGERS COULD SELL A MAXIMUM OF 400 BILLION YEN 37 BILLION WORTH OF STOCK SHE SAID BUT MARK ARIMURA DIRECTOR OF EQUITY DERIVATIVES AT SALOMON BROTHERS ASIA LTD SAID THE ARBITRAGE SELLING ISN'T ALL THAT IMPORTANT PEOPLE ARE REALIZING THAT THE ECONOMY IS MUCH WORSE THAN THEY THOUGHT HE SAID IT LOOKS LIKE SOMETHING STRUCTURAL IN JAPAN HE SAID BECAUSE THE MARKET IN A PATTERN FOR THE PAST SEVERAL YEARS NEVER RECOVERS TO WHERE IT WAS BEFORE IT STARTED TO FALL THE IMPLICATION FOR BOTH THE MARKET AND THE ECONOMY HE SAID IS THAT JAPAN IS IN A LONGTERM PERIOD OF SLOWER GROWTH LONDON STOCK PRICES ROSE FRIDAY BUT FINISHED WELL BELOW THE SESSION'S HIGHS AS INVESTORS SQUARED THEIR BOOKS ON THE FINAL DAY OF A TWOWEEK TRADING ACCOUNT MEXICO CITY SHARES GAINED 14 TO A SECOND CONSECUTIVE RECORD HIGH ON EUPHORIA ABOUT PROPOSED GOVERNMENT REFORMS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10753 DOWN 103 REFLECTING A DROP IN THE ASIA/PACIFIC AND EUROPEAN MARKETS WHILE THE AMERICAN MARKETS ROSE CONSUMER SERVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12233 UP 232 OR 193 WITH KOWLOON MOTOR OF HONG KONG POSTING A 1524 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 10379 DOWN 641 OR 582 WITH ARABIAN OIL OF JAPAN FALLING 841 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 183 POINTS TO 31114 OFF THE INTRADAY PEAK OF 31234 THE FT 30STOCK INDEX CLIMBED 141 POINTS TO 23693 VOLUME WAS 6966 MILLION SHARES LITTLE CHANGED FROM 6963 MILLION SHARES A DAY EARLIER IN MEXICO CITY STOCKS' RALLY BUILT ON THE PREVIOUS DAY'S 31 SURGE AS INVESTORS WERE WOWED BY THE GOVERNMENT'S PACKAGE TO REFORM 16 LAWS INCLUDING ONE TO LIBERALIZE FOREIGN INVESTMENT THE JUMP CAME DESPITE SELLING BY FOREIGN INVESTORS IN FRANKFURT PRICES CLOSED MIXED IN TRADING THAT WAS EXTREMELY QUIET THE DAX 30STOCK INDEX AFTER MOVING WITHIN A RANGE OF JUST 986 POINTS SLIPPED 047 TO 204724 MAKING LAST WEEK'S LOSS 14 IN MILAN EQUITIES ROSE AFTER ITALY'S PRIME MINISTER EXPRESSED CONFIDENCE ABOUT PASSAGE OF THE 1994 BUDGET BUT MARKET TENSION ABOUT FURTHER POLITICAL STRAINS CONTINUED 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 9311290011 931129 POLITICS & POLICY DEMOCRATS END BID TO OVERTURN ELECTION OF WHITMAN AS GOVERNOR OF NEW JERSEY BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL DEMOCRATIC PARTY OFFICIALS HAVE DROPPED THEIR ATTEMPTS TO OVERTURN THE ELECTION OF REPUBLICAN CHRISTINE TODD WHITMAN AS NEW JERSEY GOVERNOR OVER ALLEGED EFFORTS TO SUPPRESS THE BLACK VOTE GERALD KROVATIN AN ATTORNEY FOR THE NEW JERSEY DEMOCRATIC STATE COMMITTEE SAID THAT WHILE THE COMMITTEE STILL BELIEVES WRONGDOING MAY HAVE OCCURRED WE ARE NO LONGER SEEKING TO OVERTURN THE ELECTION HE SAID THE DEMOCRATS DON'T HAVE THE EVIDENCE NEEDED TO SUPPORT ASKING A COURT TO INVALIDATE THE ELECTION THE STATE AND NATIONAL DEMOCRATIC COMMITTEES FILED A LAWSUIT IN FEDERAL COURT IN NEWARK SEEKING TO INVALIDATE THE NOV 2 ELECTION THEY ARE EXPECTED TO RETURN TO COURT TODAY AT WHICH TIME THEY COULD SEEK AN ORDER DISMISSING THE SUIT OR TO REVISE IT MR KROVATIN OF ROSELAND NJ LAW FIRM LOWENSTEIN SANDLER KOHL FISHER & BOYLAN SAID THAT IF THE SUIT IS DISMISSED THE PARTY WOULD RENEW ITS LEGAL CHALLENGE IF WRONGDOING IS TURNED UP IN STATE AND FEDERAL CRIMINAL INVESTIGATIONS JOHN L MCGOLDRICK AN ATTORNEY FOR THE WHITMAN CAMPAIGN AT THE NEWARK LAW FIRM MCCARTER & ENGLISH SAID THAT IF THE DEMOCRATS DON'T MOVE TO DISMISS THE SUIT THE REPUBLICANS WILL ASK THE COURT TO THROW IT OUT AS GROUNDLESS MRS WHITMAN WON THE NOV 2 ELECTION BY A NARROW MARGIN OF FEWER THAN 28000 VOTES BUT HER VICTORY QUICKLY WAS CLOUDED BY STATEMENTS BY HER CAMPAIGN MANAGER EDWARD ROLLINS THAT WHITMAN FORCES HAD PAID BLACK MINISTERS NOT TO ENCOURAGE THEIR CONGREGATIONS TO VOTE IN THE ELECTION DEPRIVING DEMOCRATIC GOV JIM FLORIO OF LIKELY SUPPORT IN HIS BID FOR REELECTION MR ROLLINS LATER RECANTED HIS STATEMENTS EXPLAINING THAT HE HAD LIED AND THE WHITMAN CAMPAIGN HAS INSISTED THAT NO SUCH PAYMENTS WERE MADE THE NEW JERSEY ATTORNEY GENERAL AND THE US ATTORNEY IN NEWARK NJ ARE INVESTIGATING WHETHER ANY ILLEGAL ACTIONS WERE TAKEN BY THE WHITMAN CAMPAIGN TO SUPPRESS BLACK VOTER TURNOUT THE NATIONAL AND NEW JERSEY STATE COMMITTEES OF THE DEMOCRATIC PARTY HAD SOUGHT IN THEIR LAWSUIT TO HAVE THE ELECTION THROWN OUT ON GROUNDS THAT MR ROLLINS'S INITIAL STATEMENTS IF TRUE AMOUNTED TO VIOLATIONS OF CIVILRIGHTS LAWS BUT PRETRIAL FACTFINDING IN THE CASE TURNED UP NO EVIDENCE OF ILLEGAL VOTER SUPPRESSION ON FRIDAY ATTORNEYS FOR THE DEMOCRATIC PARTY RELEASED A TRANSCRIPT OF THEIR DEPOSITION OF WEBSTER B TODD JR GOVELECT WHITMAN'S BROTHER AND CAMPAIGN AIDE MR TODD OF WINIFRED MONT WAS MRS WHITMAN'S CAMPAIGN MANAGER UNTIL SEPTEMBER WHEN MR ROLLINS WAS BROUGHT IN TO REVIVE THE CAMPAIGN ATTORNEYS FOR THE DEMOCRATS HAD HOPED THAT THE DEPOSITION OF MR TODD LAST WEDNESDAY AND FRIDAY WOULD PRODUCE SUFFICIENT EVIDENCE TO BLOCK THE OFFICIAL CERTIFICATION OF MRS WHITMAN'S ELECTION WHICH IS EXPECTED TO BE APPROVED TODAY BUT MR TODD REPEATED SEVERAL TIMES THAT HE WAS UNAWARE OF ANY EFFORTS TO PAY BLACK MINISTERS FOR NOT ENCOURAGING VOTER TURNOUT MR TODD SAID IN THE DEPOSITION THAT HE DIDN'T BELIEVE VOTER SUPPRESSION WAS NECESSARILY A BAD THING FOR INSTANCE HE SAID THAT NEGATIVE ADVERTISING WHICH WAS COMMON IN THE WHITMANFLORIO BATTLE IS MEANT TO DISCOURAGE VOTERS WHO MIGHT SUPPORT AN OPPONENT FROM GOING TO THE POLLS ONE OF THE REASONS CANDIDATES RUN NEGATIVE CAMPAIGNS IS BECAUSE IT HOLDS DOWN THE VOTE HE SAID ACCORDING TO THE 137PAGE TRANSCRIPT MR TODD SAID THAT SUCH EFFORTS HOWEVER WEREN'T AIMED AT SINGLING OUT BLACK VOTERS AND THAT HE NEVER HEARD ANYONE IN THE CAMPAIGN DISCUSS SUPPRESSING BLACK VOTER TURNOUT MR TODD ALSO WAS ASKED ABOUT A COMMENT HE MADE AT PRINCETON UNIVERSITY TWO DAYS AFTER THE ELECTION IN VIDEOTAPED COMMENTS MR TODD DESCRIBED EFFORTS TO ENCOURAGE VOTER TURNOUT IN SOME AREAS AND DISCOURAGE IT IN OTHERS ON THE VIDEOTAPE HE CUT OFF HIS COMMENT MIDWORD WITH GETTING OUT THE VOTE ON ONE SIDE AND VOTER SUP AFTER WHICH HE ADDED AND KEEPING THE VOTE LIGHT IN OTHERS LAWYERS FOR THE DEMOCRATS ASKED MR TODD IN HIS DEPOSITION WHAT HE HAD STARTED TO SAY ON THE VIDEOTAPE BEFORE HE CUT SHORT HIS COMMENT MR TODD REPLIED I'LL BE DAMNED IF I KNOW I LOOKED AT THIS TAPE FOUR OR FIVE TIMES AND I DON'T KNOW WHAT I DIDN'T SAY MR MCGOLDRICK THE ATTORNEY FOR THE WHITMAN CAMPAIGN SAID IT IS CLEAR THAT ALL THE PROCEEDINGS IN THE CASE THUS FAR HAVE SHOWN THERE IS NO EVIDENCE TO SUPPORT THE SUIT THERE ARE NO GROUNDS FOR INVALIDATION OF THE ELECTION NO GROUNDS FOR ANY REMEDY WHATSOEVER SUCH AS IMPOSING SANCTIONS ON THE REPUBLICANS BECAUSE OF THE ALLEGATIONS MR MCGOLDRICK ADDED THAT HE EXPECTS THE STATE ATTORNEY GENERAL AND THE US ATTORNEY ALSO TO REPORT SOON THAT THEY FOUND NO EVIDENCE OF WRONGDOING MR KROVATIN THE ATTORNEY FOR THE DEMOCRATS SAID HE EXPECTS THE STATE AND FEDERAL INVESTIGATIONS TO BE COMPLETED WITHIN ONE OR TWO WEEKS 9311290010 931129 ECONOMY QUARTERLY RISE IN EMPLOYMENT IS SEEN IN SURVEY BUSINESSES PROJECT GROWTH OF 13 FOR NEW HIRES IN EARLY MONTHS OF '94 BY TIMOTHY D SCHELLHARDT STAFF REPORTER OF THE WALL STREET JOURNAL EMPLOYMENT IN 1994'S FIRST QUARTER IS EXPECTED TO CONTINUE TO EXPAND MODESTLY WITH SIGNIFICANT IMPROVEMENT IN TWO KEY ECONOMIC AREAS DURABLEGOODS MANUFACTURING AND THE FINANCE INSURANCE AND REALESTATE SECTOR MANPOWER INC SAID MANPOWER'S LATEST QUARTERLY SURVEY OF 15000 COMPANIES INDICATES A NET HIRING GAIN OF 13 IN THE FIRST QUARTER AFTER ADJUSTING FOR SEASONAL FACTORS THAT COMPARES WITH AN 11 GAIN FORECAST FOR THE CURRENT QUARTER AND A 12 RISE PREDICTED FOR THE YEAREARLIER FIRST QUARTER AND IS THE STRONGEST SHOWING SINCE A 16 GAIN FORECAST FOR THIS YEAR'S SECOND PERIOD MANPOWER DOESN'T LATER ASSESS THE ACCURACY OF THESE PREDICTIONS THE NETHIRING FIGURE REPRESENTS THE DIFFERENCE BETWEEN THE PERCENTAGE OF COMPANIES ADDING TO THEIR WORK FORCE AND OF THOSE REDUCING THEIR STAFFS ON AN UNADJUSTED BASIS 18 OF SURVEYED EMPLOYERS SAID THEY PLAN TO INCREASE HIRING IN THE FIRST QUARTER 13 INTEND TO TRIM JOB ROLLS AND 66 EXPECT TO REMAIN AT THE PRESENT LEVEL ABOUT 3 WERE UNCERTAIN ABOUT THE HIRING OUTLOOK THE STRONGEST FIRSTQUARTER HIRING ACTIVITY WILL BE AMONG MANUFACTURERS OF DURABLE GOODS SUCH AS APPLIANCES AND CARS THEY FORESEE A SEASONALLY ADJUSTED NETHIRING GAIN OF 20 IN THE FINANCIAL SECTOR INCLUDING INSURANCE AND REAL ESTATE FIRMS SEE A 15 GAIN MITCHELL FROMSTEIN PRESIDENT OF MANPOWER AN EMPLOYMENTSERVICES CONCERN WAS ESPECIALLY BUOYED BY THE HIRING OUTLOOK IN THESE TWO SECTORS THESE ARE TWO KEY INDUSTRIES THAT OFTEN FUEL FOLLOWUP ACTIVITY IN OTHER SECTORS HE SAID A REAL SOLID ECONOMIC RECOVERY WITHOUT THOSE IS ALWAYS LEFT IN QUESTION ON A SEASONALLY ADJUSTED BASIS THE HIRING OUTLOOK IS ALSO ESPECIALLY STRONG IN THE WHOLESALEANDRETAIL TRADE AND THE CONSTRUCTION SECTORS WHICH EXPECT GAINS OF 18 AND 17 RESPECTIVELY ON AN UNADJUSTED BASIS AS IS TYPICAL FOR THESE SECTORS IN THE WINTER A NETHIRING LOSS IS ANTICIPATED BUT THE DECREASE IS LESS THAN IS NORMAL THE JOB OUTLOOK IS WEAKEST IN MINING WHICH SEES A NETHIRING DECREASE OF 6 IN THE FIRST QUARTER ON A SEASONALLY ADJUSTED BASIS AND IN THE TRANSPORTATION/PUBLIC UTILITIES AND THE EDUCATION SECTORS BOTH OF WHICH SEE SMALL HIRING GAINS GEOGRAPHICALLY THE MIDWEST AND THE SOUTH ANTICIPATE THE BEST GROWTH WITH ADJUSTED GAINS IN NET HIRING OF 18 AND 17 RESPECTIVELY FOLLOWED BY THE WEST AND NORTHEAST WITH 9 GAINS PREDICTED 9311290009 931129 FRENCH CONCERN SEES ALLIANCES IN DRUG FIELD ELF SANOFI FEELING SQUEEZE FROM HEALTH REFORM PARTICULARLY IN EUROPE SPECIAL TO THE WALL STREET JOURNAL LONDON OFFICIALS OF ELF SANOFI SA A FRENCH PHARMACEUTICAL AND COSMETICS CONCERN SAID THEY BELIEVE THE DETERIORATION IN THE GLOBAL PHARMACEUTICALS INDUSTRY WILL FORCE MORE ALLIANCES BETWEEN RIVALS THE INDUSTRY HASN'T HAD A YEAR SUCH AS THIS SAID JEAN PAUL LEON FINANCIAL DIRECTOR OF THE COMPANY THE ENTIRE WORLD ENVIRONMENT IS CHANGING AND ALL THE COUNTRIES' POSITIONS SEEM TO BE GOING IN THE SAME DIRECTION COMPANY OFFICIALS WERE IN LONDON FRIDAY FOR A MEDIA PRESENTATION SANOFI IS PART OF SOCIETE NATIONALE ELF AQUITAINE THE FRENCH STATEOWNED ENERGY GROUP THE SOARING COST OF HEALTH CARE HAS FORCED GOVERNMENTS ACROSS THE GLOBE TO REASSESS STATEFUNDED SYSTEMS AMONG THE FIRST VICTIMS OF THIS SCRUTINY HAVE BEEN PHARMACEUTICAL FIRMS WHICH ARE INCREASINGLY BEING FORCED TO LOWER OR CAP THEIR PRICES APART FROM HEALTHCARE REFORMS BEING CONSIDERED IN THE US SIGNIFICANT COSTCUTTING MEASURES HAVE BEEN ANNOUNCED BY GERMANY AND ITALY WHERE SANOFI HAS CONSIDERABLE EXPOSURE MR LEON SAID SALES IN GERMANY ARE RUNNING AT ABOUT 15 BELOW 1992 LEVELS HE SAID THE DROP IN ITALY WAS EVEN GREATER BUT DECLINED TO GIVE PRECISE FIGURES THE SITUATION IN GERMANY IS VERY BAD IN ITALY IT IS VERY VERY BAD HE SAID ELF SANOFI SAID LAST WEEK THAT IT EXPECTS 1993 NET INCOME TO DECLINE 24 TO 800 MILLION FRANCS 1355 MILLION FROM LAST YEAR'S 105 BILLION FRANCS IN LATE OCTOBER THE COMPANY REPORTED THAT REVENUE FOR THE FIRST NINE MONTHS OF 1993 ROSE 52 TO 1671 BILLION FRANCS IT SHOWED A SALES INCREASE OF JUST 1 IN ITS HEALTHCARE DIVISIONS BUT MR LEON SAID THAT EXCLUDING THE NEGATIVE IMPACT OF FOREIGN EXCHANGE FLUCTUATIONS UNDERLYING SALES GREW BY 4 MR LEON SAID STRONG GROWTH IN ASIA SOUTH AMERICA AND OTHER PARTS OF EUROPE MADE UP FOR THE SHORTFALL IN GERMANY AND ITALY COMPANY OFFICIALS SUGGESTED THAT PHARMACEUTICAL FIRMS CONSIDER FORGING GREATER ALLIANCES WITH RIVALS TO LOWER RESEARCH AND DEVELOPMENT COSTS SANOFI FORMED AN ALLIANCE WITH STERLING WINTHROP A UNIT OF EASTMAN KODAK CO THREE YEARS AGO TOGETHER THE TWO COMPANIES ARE DEVELOPING SIX PRODUCTS SANOFI ALSO HAS A CODEVELOPMENT AND MARKETING AGREEMENT WITH BRISTOLMYERS SQUIBB CO JEANFRANCOIS DEHECQ SANOFI CHAIRMAN SAID THESE ALLIANCES HAVE WORKED VERY WELL ADDING THAT SANOFI BELIEVES THAT MORE SUCH LINKS WILL EVOLVE IN THE YEARS AHEAD ONE POSSIBLE AREA WHERE SANOFI WOULD BE EAGER TO COLLABORATE ON RESEARCH AND DEVELOPMENT IS IN ASTHMA DRUGS THE OFFICIALS SAID SANOFI IS A RELATIVE NEWCOMER TO THE PHARMACEUTICAL BUSINESS SINCE IT IS ONLY 20 YEARS OLD PIERRE SIMON SANOFI'S HEAD OF RESEARCH AND DEVELOPMENT SAID THE COMPANY INTENDS TO FURTHER STRENGTHEN ITS THREE MAIN CORE AREAS OF DRUG DEVELOPMENT THROMBOSIS AND CARDIOVASCULAR DISEASES CENTRAL NERVOUS SYSTEM DISORDERS AND OTHER THERAPEUTIC CLASSES ANSWERING QUESTIONS AT THE END OF THE PRESENTATION THE SANOFI OFFICIALS SAID THEY DIDN'T EXPECT TO BE SPLIT AWAY FROM ELF AQUITAINE WHEN THE FRENCH GOVERNMENT PRIVATIZES THE ENERGY GROUP FRANCE HAS JUST COMPLETED THE SECOND OF ITS MAJOR PRIVATIZATION TARGETS IN A WIDERANGING PROGRAM BEGUN BY THE GOVERNMENT EARLIER THIS YEAR REFERRING TO THE 350 MILLION FRANCS OF EXPECTED PROVISIONS THAT THE COMPANY ANNOUNCED LAST WEEK MR LEON SAID THAT AMOUNT WOULD COVER A VARIETY OF MEASURES IT ANTICIPATES MAKING IN THE NEXT THREE TO FOUR YEARS AS IT RESTRUCTURES TO ADAPT TO THE CHANGING MARKETPLACE HE DECLINED TO SAY IF THIS WOULD INCLUDE COSTS FOR LAYOFFS OR PLANT CLOSINGS APART FROM PHARMACEUTICALS SANOFI ALSO HAS A COSMETICS BUSINESS AND OWNS THE YVES SAINT LAURENT PERFUME BUSINESS 9311290008 931129 CREDIT MARKETS INDIVIDUALS PRESS SEARCH FOR YIELDS HIGHRISK SECURITIES OF REALESTATE LOANS GROW IN POPULARITY BY LAURA JERESKI AND MITCHELL PACELLE STAFF REPORTERS OF THE WALL STREET JOURNAL YIELDCRAVING INDIVIDUAL INVESTORS ARE HELPING TO BREATHE LIFE INTO YET MORE ESOTERIC STUFF FROM WALL STREET THEIR LATEST PASSION SECURITIES BACKED BY LOANS ON COMMERCIAL PROPERTIES THE VERY TYPES OF LOANS THAT TORPEDOED SO MANY BANKS AND INSURANCE COMPANIES WHEN THE REALESTATE MARKET TURNED SOUR PENSION FUNDS AND OTHER BIG INSTITUTIONS ARE STILL THE PRINCIPAL BUYERS OF THESE SECURITIES BUT INDIVIDUALS ARE BEING LURED INTO THE MARKET AS WELL THROUGH A SPATE OF NEW CLOSEDEND MUTUAL FUNDS THAT SPECIALIZE IN SECURITIZED COMMERCIALMORTGAGE DEALS WHAT ACCOUNTS FOR THE SUDDEN INTEREST IN A WORD YIELD ACCORDING TO KAREN SABATH A PARTNER AT BLACKROCK FINANCIAL MANAGEMENT WHICH IS IN REGISTRATION TO RAISE 90 MILLION FOR A COMMERCIALMORTGAGE FUND THESE SECURITIES CURRENTLY YIELD AS MUCH AS FIVE PERCENTAGE POINTS MORE THAN TREASURYS OF COMPARABLE SEVEN TO 10YEAR MATURITIES THE RISKY REALESTATE SECURITIES ARE YIELDING LESS THAN INVESTORS COULD HAVE GOTTEN AS RECENTLY AS SIX MONTHS AGO BECAUSE INVESTOR DEMAND IS DRIVING PRICES HIGHER BUT IT'S STILL WELL ABOVE THE YIELD ON HIGHGRADE JUNK BONDS THE POPULAR ALTERNATIVE ALONG WITH THE HANDSOME YIELDS HOWEVER INVESTORS IN SUCH SECURITIES RECEIVE AN UGLY DOSE OF CREDIT RISK BECAUSE THEY BEAR THE BRUNT OF THE LOSSES ON COMMERCIALPROPERTY LOANS THAT GO BAD INVESTORS IN THESE SECURITIES BETTER KNOW WHAT THEY'RE DOING BECAUSE THEY'RE ABSORBING THE FIRST LOSSES ON LANDLORDS WHO DEFAULT CAUTIONS STEPHEN ROTH OF LOS ANGELESBASED SECURED CAPITAL CORP WHICH ADVISES FINANCIAL INSTITUTIONS THAT WANT TO SELL OFF REAL ESTATE UNTIL RECENTLY THE MARKET FOR COMMERCIALMORTGAGE SECURITIES HAS BEEN HELD BACK BY INVESTORS' RELUCTANCE TO ASSUME THE PROPERTIES' CREDIT RISK BUT AS REALESTATE PRICES HAVE STARTED TO RECOVER SO HAS INVESTOR INTEREST THIS YEAR UNDERWRITERS WILL SELL ALMOST 18 BILLION OF SECURITIES BACKED BY DEBT FROM APARTMENT BUILDINGS HOTELS AND OFFICES ACCORDING TO COMMERCIAL MORTGAGE ALERT A NEWSLETTER BASED IN NEWARK NJ ABOUT 8 BILLION OF PUBLICLY OFFERED DEALS THIS YEAR WILL COME TO MARKET IN THE FOURTH QUARTER ALONE THIS IS GOING TO BE THE NEXT BIG GROWTH INDUSTRY FOR CAPITAL LOOKING FOR A YIELD MR ROTH PREDICTS TO CREATE COMMERCIALMORTGAGE SECURITIES ISSUERS PUT ONE OR SEVERAL COMMERCIALPROPERTY LOANS INTO A TRUST WHICH THEN ISSUES TWO DIFFERENT CLASSES OF SECURITIES BACKED BY THE INTEREST AND PRINCIPAL PAYMENTS ON THE UNDERLYING MORTGAGE COLLATERAL BY CROWDING MOST OF THE CREDIT RISK INTO THE SOCALLED BPIECES ISSUERS ARE ABLE TO CONCOCT TRIPLEA COMMERCIAL REALESTATE SECURITIES FROM UNRATED MORTGAGE DEBT THE SUBORDINATED BPIECE ALSO KNOWN AS THE FIRST LOSS PIECE NORMALLY MAKES UP BETWEEN 15 AND 25 OF THE TOTAL DEAL WITH HIGHERRATED APIECES CONSTITUTING THE REST A WHOPPING 1 BILLION OFFERING IN THE WORKS BY NEW ENGLAND MUTUAL LIFE INSURANCE CO IS TYPICAL OF THE COMMERCIALMORTGAGE DEALS NOW COMING TO MARKET ANALYSTS SAY UNDER THE TRANSACTION BOSTONBASED NEW ENGLAND MUTUAL WILL SECURITIZE COMMERCIAL REALESTATE LOANS ON ITS BOOKS THAT CURRENTLY ARE PERFORMING OR GENERATING INTEREST PAYMENTS AS REQUIRED IT WILL RETAIN ABOUT 800 MILLION OF HIGHERRATED SECURITIES FOR ITS OWN PORTFOLIO THE REMAINING 200 MILLION OF BPIECES IS NOW BEING MARKETED BY GOLDMAN SACHS & CO TO INSTITUTIONAL INVESTORS THESE INVESTORS WOULD BEAR VIRTUALLY ALL OF THE DEFAULT RISK BECAUSE THEIR SECURITIES WOULD ABSORB THE FIRST 200 MILLION IN POTENTIAL LOSSES ON THE PORTFOLIO BY SELLING OFF ITS CREDIT RISK THIS WAY NEW ENGLAND MUTUAL WILL BE ABLE TO REDUCE THE AMOUNT OF CAPITAL IT MUST SET ASIDE TO COMPLY WITH TOUGH NEW REGULATORY REQUIREMENTS NEW ENGLAND MUTUAL DECLINED TO COMMENT THE OFFERING THE LARGEST PRIVATESECTOR COMMERCIALMORTGAGEBACKED DEAL TO DATE IS EXPECTED TO BE COPIED BY OTHER INSURERS SEEKING TO COMPLY WITH THE NEW STANDARDS WHICH GO INTO EFFECT AT YEAR END THESE NEW REQUIREMENTS DEVISED BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS PENALIZE LIFEINSURANCE COMPANIES FOR HOLDING COMMERCIAL PROPERTIES AND MORTGAGES UNDER THE RULES INSURERS MUST HOLD AT LEAST 10 TIMES MORE CAPITAL AGAINST A PERFORMING MORTGAGE THAN THEY DO AGAINST A SINGLEARATED BOND THE MAIN REASON BONDS ARE EASIER TO SELL TO PUBLIC INVESTORS WHICH MAKES THEM LESS RISKY TO HOLD BY TURNING MORTGAGES INTO BONDS NEW ENGLAND MUTUAL CAN SIGNIFICANTLY REDUCE THE AMOUNT OF CAPITAL IT WILL NEED WHEN THE RULES GO INTO EFFECT GOLDMAN SACHS IS MANAGING A SIMILAR 400 MILLION ISSUE FOR HARTFORDBASED PHOENIX HOME MUTUAL LIFE INSURANCE CO AND KEMPER CORP LONG GROVE ILL IS IN THE MARKET WITH A SIMILARLY SIZED ISSUE THEY'RE SELLING THE MAJORITY OF THE RISK AND KEEPING THE MAJORITY OF THE INVESTMENTGRADE CASH FLOW EXPLAINS PAUL NIDENBERG MANAGING DIRECTOR IN CHARGE OF REALESTATE AND MORTGAGE TRANSACTIONS AT DAIWA SECURITIES AMERICA INC THREE YEARS AGO THE JUNIORS BPIECES WERE VERY DIFFICULT TO SELL HE SAID TODAY SOME OF THE FANCIEST MONEY IN TOWN IS LOOKING AT THEM THE FANCIEST MONEY INCREASINGLY INCLUDES INDIVIDUAL INVESTORS FOR EXAMPLE ASSET INVESTORS CORP A DENVER REALESTATE INVESTMENT TRUST DISTRIBUTED SHARES IN A NEW COMMERCIALMORTGAGE REIT TO ITS SHAREHOLDERS IN SEPTEMBER IN LIEU OF A CASH DISTRIBUTION GIANT PIMCO COMMERCIAL MORTGAGE SECURITIES TRUST INC RECENTLY RAISED 165 MILLION FOR A NEW FUND THAT WILL BUY BPIECES TOO MEANWHILE BLACKROCK FINANCIAL HOPES TO BRING OUT ITS 90 MILLION FUND FOR BPIECES ONLY IN JANUARY THESE FUNDS ARE AN IMPORTANT PIECE OF THE PUZZLE TO GETTING COMMERCIAL REAL ESTATE SECURITIZED SAYS MICHAEL GILIBERTO HEAD OF REALESTATE RESEARCH AT LEHMAN BROTHERS IT'S THE LINCHPIN HE SAYS BECAUSE BANKING AND INSURANCE REGULATORS DON'T LET FINANCIAL INSTITUTIONS TREAT REALESTATE LOANS AS SOLD UNLESS THE FIRSTLOSS PIECE IS OFF THEIR BOOKS BOND PRICES ROSE SHARPLY IN OVERSEAS TRADING ON THURSDAY'S NEWS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CHOSE NOT TO CUT PRODUCTION LEVELS THAT SENT OIL PRICES TUMBLING TO FIVEYEAR LOWS WHICH IS GOOD NEWS FOR INVESTORS BECAUSE IT MEANS LOWER INFLATION BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF AN INVESTMENT WITH A FIXED RATE OF RETURN THE US BOND MARKET HELD THE GAINS IN LIGHT POSTHOLIDAY TRADING THE US BOND MARKETS WERE CLOSED ON THURSDAY IN OBSERVANCE OF THANKSGIVING AND FRIDAY'S TRADING STOPPED AT 2 PM EST THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH 1000 FACE VALUE TO 99 30/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 624 FROM 630 ON WEDNESDAY THE FEW NEW YORK TRADERS WHO WERE WORKING ON FRIDAY THOUGHT THE MOVE UP WAS EXAGGERATED SO THEY WERE QUICK TO SELL BONDS AND TAKE THE PROFITS NOW WE ARE JUST GETTING BACK CLOSE TO WHERE THE MARKET BELONGS SAID MARCELLO FRUSTACI A GOVERNMENTBOND TRADER AT DAIWA SECURITIES AMERICA FRIDAY'S GAINS COULD BE REVERSED NEXT WEEK AS THE MARKET ABSORBS SEVERAL PIECES OF ECONOMIC NEWS INCLUDING THE NOVEMBER EMPLOYMENT REPORT WHICH IS TO BE RELEASED ON FRIDAY SOME EARLY FORECASTS CALL FOR NONFARM PAYROLLS TO RISE AS MUCH AS 225000 ALTHOUGH THE CONSENSUS IS CLOSER TO A 165000 RISE KATHY CAMILLI AN ECONOMIST AT MARIA FIORINI RAMIREZ INC SAYS MOST OF NEXT WEEK'S DATA INCLUDING THE EMPLOYMENT REPORT MAY COME OUT ON THE STRONG SIDE GIVING BOND TRADERS REASON TO PUSH DOWN PRICES MS CAMILLI IS CALLING FOR A 180000 RISE IN PAYROLLS GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9311290007 931129 DEPARTURES OF BROOKE GROUP EXECUTIVES LEAVES LEBOW ALONE ON KEY COMMITTEES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S LONELY AT THE TOP JUST ASK BENNETT S LEBOW CHAIRMAN OF BROOKE GROUP LTD ACCORDING TO A PROXY FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SEVERAL TOP EXECUTIVES AND DIRECTORS RECENTLY LEFT BROOKE GROUP IN FACT SO MANY KEY PLAYERS HAVE DEPARTED THAT MR LEBOW WHO OWNS 61 OF THE COMPANY'S VOTING STOCK AT LEAST TEMPORARILY IS THE SOLE MEMBER OF THE BOARD'S EXECUTIVE AND COMPENSATION COMMITTEES THE COMPANY OWNS CIGARETTE MAKER LIGGETT GROUP AND A RUSSIAN REAL ESTATE VENTURE AND CONTROLS SKYBOX INTERNATIONAL INC A SPORTS AND ENTERTAINMENT TRADINGCARD COMPANY ACCORDING TO THE FILING TWO OF BROOKE'S THREE DIRECTORS RESIGNED IN EARLY NOVEMBER THE FILING SAID MICHAEL ROSENBAUM AND JEAN SHARPE LEFT FOR PERSONAL REASONS NEITHER COULD BE REACHED AN ARTICLE IN THE WALL STREET JOURNAL IN JULY INDICATED THAT MR LEBOW AND RELATED ENTITIES HAD BORROWED HEAVILY FROM BROOKE GROUP AND OWED THE COMPANY ABOUT 178 MILLION ACCORDING TO THE PROXY THE COMPANY RESTRUCTURED MR LEBOW'S DEBT AT THE END OF JUNE EXTENDING THE MATURITY DATE ON 153 MILLION IN DEBT TO JUNE 2000 FROM JUNE 1993 MR LEBOW IN 1992 WAS PAID A SALARY OF 934818 AND A BONUS OF 556409 ACCORDING TO THE FILING IF HE IS TERMINATED WITHOUT CAUSE HE WOULD RECEIVE HIS SALARY AND HIS MINIMUM BONUS OF 450000 FOR TWO YEARS IF HE LEFT DUE TO A CHANGE OF CONTROL HE WOULD RECEIVE ABOUT THREE TIMES HIS SALARY AT THE TIME PLUS HIS MINIMUM BONUS MS SHARPE WAS TERMINATED AS EXECUTIVE VICE PRESIDENT SEPT 30 ACCORDING TO THE PROXY SHE HAD A BASE SALARY OF 375000 WHICH SHE IS ENTITLED TO RECEIVE FOR TWO YEARS A SPOKESMAN SAYS MR ROSENBAUM RESIGNED BECAUSE THE COMPANY IS MOVING ITS HEADQUARTERS TO MIAMI AND HE DIDN'T WANT TO MOVE HE IS A CONSULTANT TO SKYBOX AS PREVIOUSLY REPORTED CERTAIN CURRENT AND FORMER DIRECTORS OF THE COMPANY HAVE BEEN SUED IN THE COURT OF CHANCERY IN DELAWARE FOR ALLEGEDLY ENGAGING IN SELFDEALING TRANSACTIONS THE SHAREHOLDERS' SUIT ALSO QUESTIONS A NUMBER OF EVENTS INCLUDING CERTAIN STOCK SALES BY DEFENDANTS AND LOANS MADE TO CERTAIN DEFENDANTS THE DEFENDANTS HAVE SAID THE ALLEGATIONS ARE WITHOUT MERIT BROOKE GROUP'S RECENT SPINOFF OF A MINORITY INTEREST IN ITS SKYBOX BUSINESS ALSO HAS BEEN CONTROVERSIAL HOLDERS OF CERTAIN BROOKE GROUP RIGHTS HAVE SUED THE COMPANY CLAIMING THAT THE SKYBOX DISTRIBUTION WAS ILLEGAL BECAUSE BROOKE GROUP IS INSOLVENT BROOKE GROUP HAS SAID IT HAS A NEGATIVE NET WORTH OF ABOUT 500 MILLION THE COMPANY SAID THE CHARGES ARE WITHOUT MERIT AND HAS COUNTERSUED SKYBOX APPRAISED AT MORE THAN 14 A SHARE IS TRADING AT AROUND 6 A SHARE SEVERAL OTHER TOP EXECUTIVES AT BROOKE GROUP EITHER HAVE BEEN FIRED OR RESIGNED RECENTLY THEY INCLUDE SPENCER J VOLK WHO AS PREVIOUSLY REPORTED LEFT HIS POSTS AS LIGGET'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MARCH 30 HE WILL RECEIVE 475000 A YEAR FOR TWO YEARS THE PROXY SAID ALSO LEAVING WERE DIRECTORS STEVE GREEN AND CLARENCE SPANGLE STUART PAPERIN AN EXECUTIVE WHO WORKED ON THE COMPANY'S RUSSIAN INVESTMENT ACTIVITIES AND VINCENT CEBULA AN EXECUTIVE WHO WORKED ON THE SKYBOX SPINOFF BROOKE GROUP SPOKESMEN CONFIRMED THE COMPANY SAID IT PLANS TO FIRE RICHARD S RESSLER EXECUTIVE VICE PRESIDENT BECAUSE BROOKE GROUP INTENDS TO CLOSE ITS LOS ANGELES OFFICE BROOKE GROUP SAID MR RESSLER WHO HAS A 79 VOTING STAKE MAY BE RETAINED AS AN ADVISER AT THE DEC 6 ANNUAL MEETING BROOKE GROUP SHAREHOLDERS WILL VOTE ON TWO DIRECTORS WHO JOINED IN NOVEMBER THEY ARE ROBERT J EIDE SECRETARY AND TREASURER OF AEGIS CAPITAL CORP A VALLEY STREAM NY BROKER DEALER AND JEFFREY S PODELL A FORMER AEGIS CAPITAL BROKER AND CHAIRMAN AND PRESIDENT OF PLASTICPRODUCTS MAKER PANTASOTE INC ACCORDING TO THE FILING THE COMPANY EXPECTS MR EIDE TO JOIN THE EXECUTIVE COMMITTEE AND BOTH HE AND MR PODELL ARE EXPECTED TO JOIN MR LEBOW ON THE COMPENSATION COMMITTEE FOLLOWING THE MIAMI MEETING ANOTHER AEGIS EXECUTIVE HOWARD M LORBER IS A DIRECTOR OF SKYBOX INTERNATIONAL AND NEW VALLEY TWO OF BROOKE GROUP'S INVESTMENTS NEW VALLEY WHICH OWNS WESTERN UNION FINANCIAL SERVICES INC IS ATTEMPTING TO REORGANIZE UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE LAST YEAR BROOKE GROUP HAD A NET LOSS OF 758 MILLION OR 432 A SHARE ON REVENUE OF 720 MILLION MR LEBOW WAS UNAVAILABLE FOR COMMENT ON INFORMATION IN THE PROXY 9311290006 931129 WHO'S NEWS PORSCHE AG PORSCHE AG STUTTGART GERMANY HANS RIEDEL FROM RIVAL BAYERISCHE MOTOREN WERKE AG WAS APPOINTED EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING OF THIS LUXURYCAR MAKER PORSCHE SAID MR RIEDEL 45 YEARS OLD HAS EXPERIENCE IN ADVERTISING CONSUMER GOODS AND AUTOMOBILES WITH EMPHASIS ON BRAND MANAGEMENT AND SALES STRATEGY MR RIEDEL WAS HEAD OF CENTRAL MARKETING FOR BMW 9311290005 931129 BUSINESS BRIEF CULBRO CORP ELI WITT SUBSIDIARY AGREES TO MERGE WITH WHOLESALER CULBRO CORP OF NEW YORK SAID A UNIT ELI WITT CO REACHED AN AGREEMENT IN PRINCIPLE TO COMBINE WITH THE SOUTHERN OPERATIONS OF NCC LP ATLANTA BOTH NCC WHICH IS PRIVATELY HELD AND ELI WITT ARE WHOLESALERS OF TOBACCO CANDY GROCERIES AND OTHER PRODUCTS DISTRIBUTED TO CONVENIENCE DRUG AND MASSMERCHANDISER RETAILERS CULBRO SAID THE COMBINED COMPANY WITH APPROXIMATE ANNUAL SALES OF 2 BILLION WILL SERVE CUSTOMERS PRIMARILY IN THE SOUTHEAST SOUTHWEST AND MIDATLANTIC REGIONS NCC'S REMAINING OPERATIONS WILL CONTINUE AS AN INDEPENDENT WHOLESALER WITH FACILITIES IN THE NORTHEAST CULBRO WHICH OWNS 85 OF ELI WITT WILL OWN MORE THAN 50 OF THE COMBINED OPERATIONS MORGAN STANLEY LEVERAGED EQUITY FUND II A LIMITED PARTNERSHIP THAT IS AN INVESTOR IN NCC WILL BECOME A SIGNIFICANT SHAREHOLDER OF ELI WITT 9311290004 931129 ABREAST OF THE MARKET ANALYSTS STAY BULLISH ON STOCKS DESPITE RECENT DROP BY STEVEN E LEVINGSTON AND ANITA RAGHAVAN STAFF REPORTERS OF THE WALL STREET JOURNAL BATTERED AND BRUISED BY A COUPLE OF ROCKY WEEKS SOME INVESTMENT PROS WARN THAT THE STOCK MARKET MAY HAVE A FEW MORE UNPLEASANT PUNCHES TO DELIVER BUT ALTHOUGH MANY INVESTORS ARE UNDERSTANDABLY GLOOMY MOST STOCK STRATEGISTS SAY THE CURRENT SLUMP IS NOTHING MORE THAN A LONGNEEDED CORRECTION NOT THE START OF A BEAR MARKET DURING THE PAST THREE WEEKS INVESTORS HAVE WATCHED STOCKS FALL ALONG WITH BOND PRICES AND DESPITE A BRIEF RALLY TO A RECORD ON NOV 16 THE DOW JONES INDUSTRIAL AVERAGE HAS STALLED THE NASDAQ COMPOSITE INDEX HAS FARED WORSE LOSING 31 THIS MONTH SOME CONFIRMED BULLS ARE TAKING STEPS TO PROTECT THEMSELVES FROM A FURTHER DROP IN PRICES FOR INSTANCE BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY LAST WEEK RAISED THE CASH IN HIS US EQUITY PORTFOLIO TO 11 FROM 4 ANOTHER LONGTIME BULL CHARLES CLOUGH STOCK STRATEGIST AT MERRILL LYNCH HAS TURNED CAUTIOUS WE DON'T THINK THE CORRECTION HAS RUN ITS COURSE MR CLOUGH SAYS THOUGH HE DECLINES TO SAY HOW MUCH LOWER HE THINKS STOCKS COULD FALL MR CLOUGH ALLOWS THAT THE CORRECTION COULD LAST A NUMBER OF MONTHS WHAT'S WORSE MR CLOUGH SAYS THE CURRENT SELLOFF COULD TURN INTO A ROUT IF THE FEDERAL RESERVE BOARD DECIDES TO PULL IN THE REINS ON MONETARY POLICY IF THE FED TIGHTENS PREEMPTORILY TO GUARD AGAINST INFLATION THAT COULD KNOCK THE MARKET MORE SERIOUSLY HE WARNS DESPITE ALL THIS CAUTION MR CLOUGH INSISTS THE BULL MARKET IS INTACT THERE IS NOTHING GOING ON IN THE ECONOMY TO DRAIN LIQUIDITY FROM THE STOCK MARKET MR CLOUGH SAYS HE ARGUES THAT CREDIT DEMANDS WOULD HAVE TO RISE RAPIDLY TO DISABLE THE STOCK MARKET PERMANENTLY BUT THAT ISN'T OCCURRING REAL ESTATE CREDIT IS ONLY UP 3 DESPITE STRONG HOUSING NUMBERS HE SAYS THAT MEANS AS MANY PEOPLE ARE PAYING OFF THEIR MORTGAGES AS ARE TAKING ON NEW ONES IN COMING WEEKS MR CLOUGH WILL BE WATCHING AT LEAST TWO FEATURES IN THE MARKET HE HOPES FOR A COOLING OF THE SIZZLING MARKET FOR NEWSTOCK ISSUES HE ALSO WANTS TO SEE WHETHER THE MARKET CAN WITHSTAND A SLOWDOWN OF MONEY FLOWING INTO STOCK MUTUAL FUNDS INDEED INVESTORS ARE ALREADY HESITATING IN PUTTING MORE MONEY TO WORK IN THE STOCK MARKET NEAL LITVACK EXECUTIVE VICE PRESIDENT OF MARKETING AT BOSTONBASED FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUAL FUND COMPANY SAYS A GROWING NUMBER OF INVESTORS ARE CHOOSING TO PUT NEW MONEY INTO MONEY MARKET FUNDS RATHER THAN INTO STOCK OR BOND FUNDS AS THEY DID SIX MONTHS AGO IN THE PAST THREE WEEKS MR LITVACK SAYS THE MONEY MARKET FUNDS THAT WERE SHUNNED EARLIER THIS YEAR BECAUSE OF THEIR PUNY 25 RETURNS HAVE BECOME ONE OF THE BEST SELLERS AT FIDELITY WHAT I SEE NOW IS SOME DEGREE OF UNCERTAINTY ABOUT THE STOCK AND BOND MARKET PARTICULARLY THE BOND MARKET HE SAYS BUT EVEN AMID THE SPREADING GLOOM SOME DYEDINTHEWOOL BULLS ARE STANDING THEIR GROUND I'M STILL BULLISH BELIEVE IT OR NOT DECLARES ELAINE GARZARELLI LEHMAN BROTHERS' STAR STOCK STRATEGIST MS GARZARELLI SAYS THAT THE LONGTERM BOND RATE WOULD HAVE TO RISE TO 720 FROM 624 CURRENTLY AND THE THREEMONTH TREASURY BILL WOULD HAVE TO CLIMB TO 375 FROM ABOUT 32 TODAY BEFORE SHE TURNS BEARISH ON STOCKS SIMILARLY LASZLO BIRINYI WHO HEADS A CONSULTING FIRM THAT BEARS HIS NAME SAYS HE IS NOT TROUBLED BY THE RECENT DECLINES IN STOCKS UNLESS IT'S AN EVENTCAUSED BEAR MARKET SUCH AS AN INTERNATIONAL CRISIS BULL MARKETS DON'T END WHEN EVERYBODY IS PESSIMISTIC HE SAYS IN THE SOMETIMESCONTRADICTORY WORLD OF TECHNICAL ANALYSIS WIDESPREAD PESSIMISM IS VIEWED AS BULLISH THE LOGIC IS THAT BEARISH INVESTORS ARE STILL HOLDING ONTO CASH THAT COULD POTENTIALLY PUSH THE MARKET HIGHER ACCORDING TO THE LATEST SENTIMENT SURVEY FROM INVESTORS INTELLIGENCE A NEWSLETTER THAT TRACKS MARKET SENTIMENT AMONG ABOUT 140 INVESTMENT ADVISERS 414 OF INVESTORS ARE BEARISH ON THE STOCK MARKET THE HIGHEST NUMBER OF BEARS SINCE THE END OF JANUARY 1991 COMPARED WITH 345 WHO ARE BULLISH WITH PRICES FALLING INVESTORS OUGHT TO BE LOADING UP ON STOCK SAYS DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA MR HAYS WHO FOR MONTHS HAS BEEN EXPECTING A TREMENDOUS LATEDECEMBER RALLY STICKS BY HIS PREDICTION THIS IS THE LAST CHANCE TO GET IN MR HAYS SAYS STOCK PRICES WILL CONTINUE SLUMPING FOR A FEW MORE WEEKS WITH THE INDUSTRIAL AVERAGE SLIDING POSSIBLY AS LOW AS 3580 MR HAYS PREDICTS THERE ARE SOME MORE ROUGH WATERS TO GO THROUGH HE ADDS BUT IN THE LAST TWO WEEKS OF DECEMBER WE'LL SEE THE BIG BLASTOFF MR HAYS SAYS A STRONGERTHANEXPECTED ECONOMY REFLECTED IN A GOOD CHRISTMAS SEASON WILL LIFT THE DOW INDUSTRIALS AS HIGH AS 4200 BY AUGUST 1994 ROBUST CORPORATE EARNINGS WILL POWER THE STOCK MARKET THROUGH THE FINAL PHASE OF ITS BULL RUN AS STOCK PRICES BEGIN TO MOVE IN THE OPPOSITE DIRECTION OF SINKING BOND PRICES HE PREDICTS KEEP AN EYE ON THE PERFORMANCE OF SEMICONDUCTOR STOCKS FOR A SIGN OF THE DEVELOPING TREND MR HAYS ADVISES HE NOTES THAT THESE STOCKS WERE AMONG THE FIRST TO BEGIN SINKING AMID THE CURRENT DOWNTURN NOW THEY MAY BE BOTTOMING OUT A SIGN THAT THE MARKET IS LAYING THE GROUNDWORK FOR ITS REBOUND HE SAYS BUT IF THE FIRST HALF OF NEXT YEAR LOOKS ROSY ACCORDING TO MR HAYS'S SCENARIO WATCH OUT THE REST OF THE YEAR AFTER PEAKING ABOVE THE 4000 LEVEL THE DOW INDUSTRIALS WILL THEN SINK ABOUT 15 OVER THE SUBSEQUENT SIX TO 12 MONTHS MR HAYS PREDICTS STOCK PRICES WERE MIXED IN AN ABBREVIATED POSTHOLIDAY SESSION THE DOW JONES INDUSTRIAL AVERAGE EDGED DOWN 363 POINTS TO 368395 IN TRADING THAT ENDED AT 1 PM EST STANDARD & POOR'S 500STOCK INDEX GAINED 070 TO 46306 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 048 TO 25561 THE NASDAQ COMPOSITE ROSE 169 TO 75487 FOR THE WEEK THE INDUSTRIAL AVERAGE FELL 1006 POINTS THE S&P GAINED 046 POINT THE NYSE COMPOSITE INCHED UP 008 POINT AND THE NASDAQ COMPOSITE ADDED 331 POINTS WORLDWIDE STOCK PRICES FELL FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 103 TO 10753 OIL STOCKS PLUNGED FOLLOWING THURSDAY'S ANNOUNCEMENT THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FAILED TO REACH AGREEMENT ON CUTTING PRODUCTION OIL PRICES HIT A FIVEYEAR LOW ON THURSDAY BUT STABILIZED FRIDAY THE DECLINE IN OIL PRICES HELPED LIFT BOND PRICES FRIDAY AND PROVIDE SOME UNDERLYING STRENGTH FOR THE STOCK MARKET BUT THE OPEC NEWS PRODUCED A ROUT IN THE OIL SECTOR AS MERRILL LYNCH DOWNGRADED RATINGS ON 15 OIL COMPANIES THE PROSPECT OF LOWER FUEL COSTS BOOSTED TRANSPORATION STOCKS THE DOW JONES TRANSPORTATION AVERAGE SOARED 2885 TO 173989 AMR PARENT OF AMERICAN AIRLINES GAINED 1 3/8 TO 67 3/8 AND DELTA AIR LINES ROSE 1 5/8 TO 58 5/8 UAL PARENT OF UNITED AIRLINES SOARED 5 5/8 TO 145 UAL SAID IT WILL RESUME TALKS WITH UNIONS ABOUT SELLING CONTROL OF UNITED SOME RETAILERS ROSE ON THE FIRST OFFICIAL DAY OF CHRISTMAS SHOPPING MAY DEPARTMENT STORES GAINED 1 5/8 TO 44 1/8 JC PENNEY 1 1/4 TO 53 AND SEARS ROEBUCK 1 TO 56 THE AMERICAN DEPOSITARY RECEIPTS OF MEXICAN STOCKS GOT A LIFT FROM A STRONG MEXICAN MARKET TELEFONOS DE MEXICO ROSE 1 3/8 TO 57 AND EMPRESAS ICA SOCIEDAD CONTOLADORA JUMPED 1 5/8 TO 24 9311290003 931129 JAPANESE BANKS' PROFIT DECLINED IN THE FIRST HALF LONGTERM CREDIT BANKS SAW 10 PRETAX DROP TRUST BANKS FELL 44 BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S LONGTERM CREDIT BANKS AND TRUST BANKS REPORTED MOSTLY LOWER EARNINGS FOR THE FISCAL FIRST HALF ENDED SEPT 30 REFLECTING A COMBINATION OF BADDEBT PROBLEMS AND POOR DEMAND FOR LOANS THE LONGTERM CREDIT BANKS AND THE TRUST BANKS WERE BOTH ORIGINALLY ORGANIZED TO MAKE LONGTERM LOANS LONGTERM CREDIT BANKS' LOANS WERE AT A FIXED RATE WHILE TRUST BANKS MADE FLOATINGRATE LOANS INTERESTRATE DECONTROLS HOWEVER HAVE BLURRED THE DISTINCTION AND DRIVEN THE BANKS INTO OTHER LINES OF BUSINESS TRUST BANKS COUNT ON FUNDMANAGEMENT FEES FOR A SUBSTANTIAL PART OF THEIR BUSINESS WHILE TWO OF THE LONGTERM BANKS ACTIVELY OPERATE SECURITIES SUBSIDIARIES WHILE BOTH GROUPS HAD LOWER PROFITS THE TRUST BANKS WERE FAR WORSE OFF AS A GROUP PRETAX PROFITS AT THE LONGTERM CREDIT BANKS WERE DOWN 10 COMPARED WITH THE YEAREARLIER PERIOD WHILE TRUST BANKS' PRETAX PROFITS FELL 44 FROM A YEAR EARLIER THE FOURYEARLONG BEAR MARKET ON THE TOKYO STOCK EXCHANGE HAS BEEN PARTICULARLY HARD ON THE TRUST BANKS TRUSTBANK PERFORMANCE FOR THE SIX MONTHS HOWEVER WAS GOOD FOR A LOT OF THE TRUST BANKS COMPARED WITH EXPECTATIONS SAID BETSY DANIELS FINANCIAL ANALYST AT MORGAN STANLEY JAPAN INC THE TRUST BANKS GOT A BOOST FROM REGULATORY CHANGES IN JAPAN'S LOANTRUST PRICING SYSTEM WHICH WILL ADD TO REVENUES MORE SIGNIFICANTLY IN THE CURRENT PERIOD SHE SAID PERFORMANCE VARIED WIDELY AMONG THE LONGTERM BANKS INDUSTRIAL BANK OF JAPAN LTD FOR EXAMPLE HAD THE ONLY INCREASE IN OPERATING REVENUE IBJ HAS ACTIVE BOND AND INTERESTRATESWAPS TRADING OPERATIONS AND SHOWED THE SMALLEST DROP IN PRETAX PROFITS NIPPON CREDIT BANK LTD WHICH IS REGARDED AS HAVING THE WORST BADLOAN PROBLEM OF THE THREE LONGTERM BANKS SHOWED THE SHARPEST DROP IN PROFITS THE RESULT OF MAKING RESERVES AGAINST BAD LOANS OVERALL BOTH GROUPS OF BANKS ARE GENERALLY EXPECTED TO HAVE AN EXTENDED PERIOD OF BAD EARNINGS BECAUSE OF THE BADLOAN PROBLEM AND POOR DEMAND IN CORE BUSINESS AREAS IN ADDITION JAPAN'S CENTRALBANK ATTEMPTS TO REVIVE THE JAPANESE ECONOMY ARE KEEPING KEY INTEREST RATES SO LOW THAT BANKS HAVE DIFFICULTY PROFITING ON EXISTING LOANS IBJ SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 3335 BILLION YEN 3084 MILLION DOWN 6 FROM 3546 BILLION YEN A YEAR EARLIER NET INCOME WAS 1543 BILLION YEN OR 656 YEN A SHARE DOWN FROM 2107 BILLION YEN OR 896 YEN A SHARE A YEAR EARLIER OPERATING REVENUE ROSE 51 TO 145 TRILLION YEN FROM 138 TRILLION YEN LONGTERM CREDIT BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 2136 BILLION YEN DOWN 72 FROM 2301 BILLION YEN A YEAR EARLIER NET INCOME WAS 1301 BILLION YEN OR 543 YEN A SHARE DOWN FROM 1853 BILLION YEN OR 774 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 32 TO 102 TRILLION YEN FROM 105 TRILLION YEN NIPPON CREDIT BANK SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 18 BILLION YEN DOWN 20 FROM 2249 BILLION YEN A YEAR EARLIER NET INCOME WAS 664 BILLION YEN OR 3828 YEN A SHARE DOWN FROM 1358 BILLION YEN OR 7828 YEN A SHARE A YEAR EARLIER MITSUBISHI TRUST & BANKING CO SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 1654 BILLION YEN DOWN 44 FROM 2975 BILLION YEN A YEAR EARLIER NET INCOME WAS 873 BILLION YEN OR 67 YEN A SHARE DOWN FROM 1148 BILLION YEN OR 881 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 16 TO 49662 BILLION YEN FROM 58911 BILLION YEN SUMITOMO TRUST & BANKING CO SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 166 BILLION YEN DOWN 42 FROM 284 BILLION YEN A YEAR EARLIER NET INCOME WAS 851 BILLION YEN OR 684 YEN A SHARE DOWN FROM 1508 BILLION YEN OR 1213 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 12 TO 51164 BILLION YEN FROM 58359 BILLION YEN MITSUI TRUST & BANKING CO SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 985 BILLION YEN DOWN 285 FROM 1378 BILLION YEN A YEAR EARLIER NET INCOME WAS 575 BILLION YEN OR 48 YEN A SHARE DOWN FROM 951 BILLION YEN OR 793 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 79 TO 51503 BILLION YEN FROM 55946 BILLION YEN YASUDA TRUST & BANKING CO SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 943 BILLION YEN DOWN 56 FROM 2133 BILLION YEN A YEAR EARLIER NET INCOME WAS 455 BILLION YEN OR 412 YEN A SHARE DOWN FROM 751 BILLION YEN OR 68 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 16 TO 35046 BILLION YEN FROM 41815 BILLION YEN TOYO TRUST & BANKING CO SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 534 BILLION YEN DOWN 52 FROM 1106 BILLION YEN A YEAR EARLIER NET INCOME WAS 373 BILLION YEN OR 474 YEN A SHARE DOWN FROM 552 BILLION YEN OR 703 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 16 TO 26744 BILLION YEN FROM 31733 BILLION YEN CHUO TRUST & BANKING CO SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 34 BILLION YEN DOWN 38 FROM 546 BILLION YEN A YEAR EARLIER NET INCOME WAS 173 BILLION YEN OR 748 YEN A SHARE DOWN FROM 317 BILLION YEN OR 1373 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 18 TO 14978 BILLION YEN FROM 18316 BILLION YEN NIPPON TRUST BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 143 BILLION YEN DOWN 47 FROM 271 BILLION YEN A YEAR EARLIER NET INCOME WAS 686 MILLION YEN OR 317 YEN A SHARE DOWN FROM 118 BILLION YEN OR 544 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 29 TO 4359 BILLION YEN FROM 6141 BILLION YEN 9311290002 931129 BUSINESS BRIEF FIELDCREST CANNON ENDS TENDER OFFER FOR AMOSKEAG STAKE EDEN NC FIELDCREST CANNON INC SAID IT COMPLETED ITS 1376 MILLION TENDER OFFER FOR THE COMMON STOCK OF ITS CONTROLLING SHAREHOLDER AMOSKEAG CO THE ACTION OFFICIALLY BROUGHT TO A CLOSE FIELDCREST'S 10MONTH BATTLE FOR INDEPENDENCE ALTHOUGH IT DIDN'T END SPECULATION AMONG MANY INVESTORS THAT THE LARGE TOWEL MANUFACTURER STILL MAY BE A TAKEOVER TARGET SPRINGS INDUSTRIES INC A TEXTILE MAKER BASED IN FORT MILL SC AND OTHERS TRIED IN VAIN EARLIER THIS YEAR TO GAIN CONTROL OF FIELDCREST FIELDCREST ALSO SAID THAT ITS BOARD AMENDED COMPANY BYLAWS TO ALLOW SPECIAL STOCKHOLDER MEETINGS TO BE CALLED ONLY BY FIELDCREST'S CHIEF EXECUTIVE OFFICER ITS SECRETARY OR A MAJORITY OF ITS BOARD PREVIOUSLY AS FEW AS 25 OF THE SHAREHOLDERS COULD CALL A SPECIAL STOCKHOLDER MEETING THE COMPANY SAID THAT ACTION CAME AS ONE MINORITY SHAREHOLDER THE NEW YORK INVESTMENT FIRM WYSERPRATTE & CO ASKED THAT A SPECIAL SHAREHOLDER MEETING BE HELD TO SELECT SEVERAL NEW DIRECTORS WYSERPRATTE HAS CRITICIZED THE AMOSKEAG PURCHASE THIS IS A CLEAR ENTRENCHMENT ATTEMPT SAID GUY WYSERPRATTE THE FIRM'S PRESIDENT TO CHANGE THE BYLAWS TO PRECLUDE THE SHAREHOLDERS FROM CALLING A SPECIAL MEETING I CONSIDER A CALL TO ARMS FIELDCREST IS PURCHASING ALL 34 MILLION SHARES OUTSTANDING OF AMOSKEAG FOR 40 EACH MORE THAN 90 OF AMOSKEAG'S SHARES WERE PURCHASED IN THE TENDER OFFER THE COMPANY SAID AND PAYMENT BEGAN NOV 26 THE AMOSKEAG SHARES NOT PURCHASED IN THE TENDER OFFER WILL BE ACQUIRED BY FIELDCREST IN A MERGER OF THE TWO COMPANIES AS SOON AS PRACTICABLE THE COMPANY SAID 9311290001 931129 OCTOBER MACHINETOOL ORDERS FELL 85 FROM SEPTEMBER BUT ROSE 25 ON YEAR BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS FELL 85 IN OCTOBER FROM SEPTEMBER BUT JUMPED 25 FROM THE YEAREARLIER MONTH AS MANUFACTURERS CONTINUED TO SEEK EQUIPMENT TO CUT COSTS AND BOOST PRODUCTIVITY OCTOBER'S ORDERS TOTALED 2585 MILLION DOWN FROM 2826 MILLION IN SEPTEMBER BUT UP FROM 2068 MILLION IN OCTOBER 1992 ON A YEARTODATE BASIS ORDERS SOARED 295 TO 274 BILLION FROM 211 BILLION ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY AN INDUSTRY GROUP THE DOMESTIC ECONOMY CONTINUES TO DO REASONABLY WELL WHICH IS TRANSLATING INTO CORPORATIONS CONTINUING TO INVEST IN PRODUCTIVITY ENHANCING EQUIPMENT SAID ELI S LUSTGARTEN WHO FOLLOWS THE MACHINETOOL INDUSTRY FOR PAINEWEBBER INC ORDERS FOR MUCH OF THE YEAR HAVE BEEN BOOSTED BY LARGE ORDERS FROM AUTOMOBILE MAKERS WHICH ARE RAMPING UP NEW PRODUCTION PROGRAMS WHILE TRYING TO CUT COSTS AND TURN OUT NEW MODELS FASTER BUT THOSE ORDERS HAVE SLOWED WHILE ORDERS FROM A BROADER ARRAY OF INDUSTRIES HAVE PICKED UP HAMMOND MACHINERY INC A KALAMAZOO MICH MACHINETOOL MANUFACTURER IS EXPERIENCING A BIG ORDER INCREASE FROM A RANGE OF INDUSTRIES SAID MICHAEL A CARL PLANT MANAGER CUSTOMERS WHO ARE BUYING MACHINERY FROM US ARE GEARING UP FOR HIGHER PRODUCTION HE SAID BUT SOME OBSERVERS CONTEND THE ORDER UPSURGE REMAINS SPOTTY IT'S STILL KIND OF ROUGH AND TUMBLE OUT THERE SAID J BLAIR BRUMLEY AN ANALYST WITH DAIN BOSWORTH INC IN MINNEAPOLIS ORDERS TO MACHINETOOL DISTRIBUTORS SHOWED THIS WEAKNESS AN INDEX COMPILED BY THE AMERICAN MACHINE TOOL DISTRIBUTORS' ASSOCIATION FELL 296 IN OCTOBER FROM SEPTEMBER AND 106 FROM OCTOBER 1992 THE INDEX IS BASED ON ORDERS OVER THREE YEARS MACHINE TOOLS CUT AND FORM METAL PARTS FOR OTHER MACHINES THEIR ORDERS ARE CONSIDERED AN ECONOMIC HARBINGER BECAUSE THE TOOLS ARE SHIPPED NINE TO 18 MONTHS LATER ACCORDING TO THE AMT DOMESTIC MACHINETOOL ORDERS CONTINUED TO MAKE UP THE BULK OF NEW ORDERS IN OCTOBER THEY FELL 84 TO 239 MILLION IN OCTOBER FROM 2609 MILLION IN SEPTEMBER BUT CLIMBED 30 FROM 1839 MILLION IN OCTOBER 1992 ON A YEARTODATE BASIS DOMESTIC ORDERS ROSE 369 TO 25 BILLION FROM 183 BILLION ORDERS FOR EXPORT REMAINED SOFT IN OCTOBER THEY FELL 104 TO 195 MILLION FROM 217 MILLION IN SEPTEMBER AND WERE OFF 151 FROM 229 MILLION IN OCTOBER 1992 THROUGH OCTOBER ORDERS FOR EXPORT FELL 171 TO 2398 MILLION FROM 2893 MILLION IN THE SAME PERIOD LAST YEAR COMPARATIVE NEW ORDERS FOR METALCUTTING MACHINES 9311290019 931007 TOO HOT TO HANDLE HIGHHEAT ARSON FIRES SWIFTLY RAZE BUILDINGS BUT LEAVE FEW CLUES EXTRAORDINARY DAMAGE SENDS INVESTIGATORS SEARCHING FOR EXOTIC ACCELERANT' SPACE TRAVEL OFFERS AN ANSWER BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE SOMEWHERE IN AMERICA AN UNDERGROUND ENTREPRENEUR HAS REVOLUTIONIZED THE BUSINESS OF ARSON FOR PROFIT NO ONE REALIZED IT HOWEVER UNTIL INVESTIGATORS HERE DISCOVERED WHAT SEEMS TO BE A NATIONAL PATTERN OF UNSOLVED ARSONS FEATURING BIZARRE PHENOMENA NEVER BEFORE ENCOUNTERED WITNESSES INVARIABLY REPORT THE SAME PRETERNATURAL IMAGE PILLARS OF WHITEHOT ENERGY THAT CONSUME VAST INDUSTRIAL BUILDINGS IN MINUTES EVEN THOSE CONTAINING NO FLAMMABLE MATERIAL FIRE INVESTIGATORS COMBING THE RUBBLE FIND MELTED STEEL AND CONCRETE TURNED TO GLASS YET NORMAL FIRES EVEN THOSE SET WITH GASOLINE AREN'T SUPPOSED TO GET HOT ENOUGH TO DO SUCH DAMAGE THEY KNOW THE FIRES NOW OFFICIALLY KNOWN AS HIGHTEMPERATURE ACCELERANT FIRES ARE CAUSED BY ARSON BECAUSE BIG EMPTY BUILDINGS ARE HARD TO BURN WITHOUT AN ADDED ACCELERANT BUT UNLIKE IN ORDINARY ARSONS THEY CAN FIND NO TRACE OF ANY FUEL NONE IT WAS LIKE SCIENCE FICTION SAYS RICHARD GEHLHAUSEN AN INVESTIGATOR WITH THE SEATTLE FIRE DEPARTMENT RECALLING HIS FIRST HTA FIRE SEATTLE ALONE HAS HAD AT LEAST FOUR INCLUDING ONE THAT KILLED A FIREFIGHTER I'D NEVER SEEN ANYTHING LIKE IT HE SAYS I WAS HOOKED AND SO BEGAN WHAT MAY WELL BE THE MOST INTENSIVE SCIENTIFIC INVESTIGATION IN THE HISTORY OF ARSON NOT A WHODUNIT EXACTLY BUT A WHATDUNIT SO FAR THE INQUIRY HAS TAKEN SEATTLE INVESTIGATORS PLACES ARSON SQUADS DON'T TYPICALLY GO EVEN TO THE NAVY'S WEAPONSTESTING GROUNDS AT CHINA LAKE IN CALIFORNIA ALONG THE WAY THE INVESTIGATION HAS ATTRACTED A TEAM OF SCIENTISTS WHO LIKEWISE ENSNARED BY THE TWILIGHT ZONE NATURE OF THE MYSTERY VOLUNTEERED TIME AND EQUIPMENT AT ONE POINT THE INVESTIGATORS THEMSELVES TORCHED A LARGE BUILDING JUST TO TEST A SUSPECTED FUEL WASHINGTON HAS BEEN HIT HARDEST BY THE FIRES AT LEAST EIGHT SO FAR BUT INVESTIGATORS NOW BELIEVE A SINGLE ARSONIST MAY HAVE SET DOZENS OF HTA FIRES ACROSS THE COUNTRY THE LATEST TOOK PLACE IN ILLINOIS EARLIER THIS YEAR CONFIRMED FIRES HAVE OCCURRED IN CALIFORNIA PENNSYLVANIA AND FLORIDA THE INVESTIGATORS SUSPECT OTHER HTA FIRES HAVE GONE UNRECOGNIZED THEY BELIEVE MORE WILL OCCUR IN THE FUTURE THE METHOD OF DESTRUCTION IS SO GOOD IT'S UNREASONABLE TO ASSUME IT'S NOT GOING TO GO ON SAYS DENNIS FOWLER A FORMER SEATTLE FIRE INVESTIGATOR NOW A CONSULTANT WHO WAS FIRST TO SPOT THE UNIQUE DAMAGE CAUSED IN HTA ARSONS AND WHO REMAINS CLOSELY INVOLVED WITH THE INQUIRY THERE HAS NOT YET BEEN A BUILDING DESIGNED THAT CAN WITHSTAND THIS FIRE THE INVESTIGATION IS CAUSING FIRE DEPARTMENTS TO RETHINK THEIR TACTICS WITH AN HTA FIRE THE MOST DANGEROUS THING CREWS CAN DO IS ARRIVE TOO EARLY WHEN FIRES ARE IN THEIR MOST DECEPTIVE PHASE MR FOWLER HAS SOME UNUSUAL ADVICE FOR CREWS WHO SUSPECT THEY ARE FACING AN HTA FIRE STAND BACK WAY BACK AND LET IT BURN INDEED WATER ONLY MAKES THE FIRES WORSE A REACTION INVESTIGATORS THINK IS CAUSED WHEN THE EXTREME HEAT SPLITS THE WATER INTO EXPLOSIVE HYDROGEN AND FIREFEEDING OXYGEN CHEMICAL EXTINGUISHERS DON'T WORK EITHER SAYS MR FOWLER THERE'S NOTHING THE FIRE DEPARTMENT HAS TO DATE THAT CAN PUT THIS FIRE OUT THIS IS DISCONCERTING NEWS FOR THE INSURANCE INDUSTRY WHICH FOR 1991 ALONE CONFRONTED 17 BILLION OF PROPERTY DAMAGE CAUSED BY ARSON HTA FIRES INVARIABLY ARE DEVASTATING AND COSTLY A SINGLE SUCH FIRE A JUNE 29 1991 BLAZE IN NESHANNOCK TOWNSHIP PA THAT DESTROYED THE MANUFACTURING AND WAREHOUSE FACILITIES OF GALAXY CHEESE CO COST LIBERTY MUTUAL INSURANCE CO 111 MILLION SAYS JOHN DICOLA CHIEF OF THE TOWNSHIP'S VOLUNTEER FIRE COMPANY WE COULD HAVE BEEN HAVING A CONVENTION IN THE PARKING LOT WE STILL WOULDN'T HAVE BEEN ABLE TO STOP IT THESE FIRES COMPOUND THE MONUMENTAL DIFFICULTIES OF INVESTIGATING PROFESSIONAL ARSONS IN ORDINARY ARSON FIRES THERE IS USUALLY A DISTINCTIVE BURN OR POUR PATTERN AND INVESTIGATORS OFTEN CAN IDENTIFY THE FUEL USED WITH HTA FIRES THEY CAN'T THIS GREATLY INCREASES THE HURDLES FACED BY INSURANCE COMPANIES TO AVOID PAYING ON A CLAIM THE INSURER MUST PROVE THAT AN ARSON HAS OCCURRED AND THAT THE CLAIMANT HAD SOMETHING TO DO WITH IT WITHOUT SUCH EVIDENCE AN INSURER THAT BALKS AT PAYING CAN BE SUED FOR ACTING IN BAD FAITH AND MAY FACE PENALTIES OF AS MUCH AS THREE TIMES THE CLAIM DESPITE THE OBVIOUS CONCLUSION OF ARSON IN THE GALAXY CHEESE FIRE FOR EXAMPLE LIBERTY MUTUAL HAD TO PAY BECAUSE ITS INVESTIGATORS COULDN'T IDENTIFY A SPECIFIC ACCELERANT AND FAILED TO ESTABLISH A LINK BETWEEN THE BLAZE AND THE OFFICERS OF GALAXY WHICH NOW IS BASED IN ORLANDO FLA STILL SAYS ROBERT BARBER PROPERTYLOSS MANAGER FOR LIBERTY MUTUAL THE MATTER IS NOT CLOSED THE MYSTERY BEGAN NEARLY A DECADE AGO IN 1984 WHEN AN INTENSE FIRE SWEPT A SEATTLE CARPET WAREHOUSE MR FOWLER THEN WITH THE SEATTLE FIRE DEPARTMENT FOUND THAT A STEELROOF TRUSS HAD NOT MERELY MELTED PART OF IT HAD VAPORIZED HE ALSO DISCOVERED THAT PARTS OF THE CONCRETE FLOOR HAD TURNED A SHINY TURQUOISE ONLY RECENTLY HOWEVER DID A FORENSIC CONCRETE EXPERT OR PETROGRAPHER IN SKOKIE ILL CONCLUDE THAT THE HEAT HAD TURNED THE CONCRETE TO GLASS THE DAMAGE SAYS LAURA POWERSCOUCHE THE PETROGRAPHER SUGGESTED TEMPERATURES LIKE THE TEMPERATURES EXPERIENCED ON THE LAUNCHING PAD AT CAPE CANAVERAL A SINGLE FIRE MIGHT HAVE BEEN EXPLAINABLE AS A FREAK OF THERMODYNAMICS BUT SOON OTHER FIRES OCCURRED THAT FOLLOWED THE SAME PATTERN WITNESSES WHO SPOTTED THE FIRES REPORTED SEEING ONLY MINOR SIGNS OF TROUBLE YET ARRIVING FIREFIGHTERS FOUND THE BUILDINGS ON THE VERGE OF COLLAPSE ONE SUCH FIRE DESTROYED AN EMPTY 160000SQUAREFOOT MANUFACTURING PLANT IN WEST CHICAGO ILL IN JUST 30 MINUTES EVEN THOUGH THE PLANT WAS ACROSS THE STREET FROM A FIRE STATION HAVING EXHAUSTED CUSTOMARY FIREINVESTIGATION METHODS SEATTLE'S ARSON SQUAD BEGAN ENLISTING THE HELP OF MORE EXOTIC RESOURCES INCLUDING RESEARCHERS ARMED WITH SOPHISTICATED MATERIALANALYSIS SYSTEMS STILL NONE COULD FIND A TRACE OF FUEL AT ONE POINT MR GEHLHAUSEN INVITED JIM MARS AN ENGINEER WITH ROCKET RESEARCH CORP OF REDMOND WASH TO WATCH VIDEOTAPES OF TWO SEATTLE FIRES FLAMES IN CONVENTIONAL FIRES RANGE FROM 1472 TO 1832 DEGREES FAHRENHEIT YET AFTER SEEING HOW WATER FROM FIRE HOSES REACTED WITH THE FIRE MR MARS ESTIMATED THE TEMPERATURES AT 4000 DEGREES HE ALSO OFFERED A STUNNING OBSERVATION THE ARSONIST COULD BE USING ROCKET FUEL ROCKET FUEL MUST BE ABLE TO BURN EVEN IN OXYGENFREE OUTER SPACE THIS PROPERTY WOULD ACCOUNT FOR WHY THE HTA FIRES ALWAYS SEEM SO SMALL WHEN FIRST REPORTED SUCH A FUEL BY SUPPLYING ITS OWN OXYGEN COULD BURN INSIDE A STRUCTURE LONG AFTER CONSUMING OR AS THE TESTS AT CHINA LAKE SUGGESTED FORCING OUT THE AMBIENT OXYGEN THE THERMAL COLUMN COULD SUPERHEAT THE INTERIOR TO THE POINT WHERE EVERY EXPOSED SURFACE BEGAN TO VAPORIZE WITHOUT PRODUCING ANY FLAME FROM THE OUTSIDE THE FIRE WOULD APPEAR TO BE MANAGEABLE INSIDE HOWEVER FIREFIGHTERS WOULD ENCOUNTER CONDITIONS FAR HOTTER THAN EVEN THE MOST FLAMBOYANT ORDINARY FIRES WORSE THE INSTANT THAT OXYGEN REENTERED THE BUILDING AS WHEN A FIREFIGHTER OPENED A DOOR FLASHOVER WOULD OCCUR WITH EVERYTHING SIMULTANEOUSLY BURSTING INTO FLAME A PHENOMENON THAT WOULD EXPLAIN WHY THE BUILDINGS WERE BEYOND SALVAGE BY THE TIME FIRE CREWS ARRIVED IT WAS UNLIKELY HOWEVER THAT THE ARSONIST WAS USING TRUE COMMERCIAL ROCKET FUEL THE INVESTIGATORS THEORIZED THAT HE HAD CONCOCTED SOMETHING SIMILAR USING READILY AVAILABLE MATERIALS ON SEPT 9 1989 THE ARSONS BECAME FAR MORE THAN A TECHNICAL MYSTERY WITNESSES REPORTED A SMALL FIRE IN THE BLACKSTOCK BUILDING AN EMPTY LUMBER WAREHOUSE OCCUPYING A PRIME PIECE OF SEATTLE WATERFRONT IN THIS CASE FIREFIGHTERS MAY HAVE ARRIVED TOO QUICKLY TWO FIREMEN WILLIAM MEREDITH AND LT MATTHEW JOHNSON ENTERED A PORTION OF THE BUILDING SEPARATED FROM THE MAIN BODY OF THE BLAZE BY A FIRE WALL ON THEIR SIDE THE AIR WAS WARM BUT TOLERABLE ON THE FAR SIDE THOUGH THEY COULDN'T HAVE KNOWN IT TEMPERATURES WERE ESTIMATED IN EXCESS OF 5000 DEGREES LT JOHNSON STAYED BELOW WITH THE WATER HOSE WHILE MR MEREDITH CLIMBED A STAIRWAY TO HUNT FOR OPEN FLAMES STILL HE FELT NOTHING UNUSUAL MOMENTS LATER HOWEVER A PORTION OF THE ROOF ELSEWHERE IN THE WAREHOUSE COLLAPSED ROLLING OUTWARD WITH SO MUCH FORCE IT SNAPPED THE FIRE WALL AT A HEIGHT OF ABOUT EIGHT FEET RAW ENERGY SURGED PAST THE BREAK IT WAS JUST STAGGERING MR MEREDITH RECALLS IT WAS LIKE A THOUSAND LITTLE NEEDLES GOING THROUGH ME WHITEHOT NEEDLES MR MEREDITH MADE HIS WAY DOWN THE STEPS BUT COULDN'T FIND HIS PARTNER HE FOLLOWED THE HOSE TO ITS NOZZLE THEN OUTSIDE THEN BACK IN AGAIN WHERE HE NOW HEARD THE CRY OF A LOWAIR ALARM FROM A FIREFIGHTER'S BREATHING APPARATUS HE FOLLOWED THE SOUND TO LT JOHNSON WHO WAS ALIVE BUT DISORIENTED WHEN THE TWO MEN TRIED TO EXIT BY RETRACING MR MEREDITH'S ROUTE THEY BECAME LOST WITHIN THE STRUCTURE THEY TRIED RADIOING FOR HELP BUT GOT NO RESPONSE LT JOHNSON HIS AIR SUPPLY NOW DANGEROUSLY LOW LAY ON THE FLOOR THE COOLEST AND SAFEST PLACE IN A FIRE MR MEREDITH SOUGHT HELP AS THE HEAT ROSE HE ALSO BECAME DISORIENTED AT ONE POINT HE SAW A CRACK IN THE WALL A FIRETRUCK JUST OUTSIDE HE SQUEEZED THROUGH THE CRACK AND RESTED AGAINST THE COOL SKIN OF THE VEHICLE FEELING UTTER RELIEF IT WAS THE MOST VIVID THING HE SAYS AN INSTANT LATER HE REALIZED HE WAS STILL IN THE WAREHOUSE HE DID ESCAPE BUT DOESN'T REMEMBER HOW MEDICS DISCOVERED THAT HIS CORE TEMPERATURE A MEASURE OF HEAT BUILDUP DEEP INSIDE THE BODY HAD REACHED LETHAL LEVELS HE WAS BAKED SAYS MR FOWLER THE CONSULTANT JUST AS IF YOU STUCK HIM IN AN OVEN AT 2000 DEGREES FOR FIVE MINUTES INVESTIGATORS RETRIEVED LT JOHNSON'S BODY LATER THAT NIGHT AFTER THE LAST FLAMES HAD DIED AWAY THE INVESTIGATION EXPANDED TO INCLUDE HOMICIDE MR GEHLHAUSEN THE SEATTLE FIRE INVESTIGATOR CALLED ON MORE EXPERTS AMONG THEM HARRY HASEGAWA A LEADING FIRE RESEARCHER THEN EMPLOYED BY THE UNIVERSITY OF CALIFORNIA'S LAWRENCE LIVERMORE NATIONAL LABORATORY HE TOO AGREED THE ACCELERANT COULD BE A KIND OF SOLID ROCKET FUEL AND ADDED THAT NO ONE HAD STUDIED HOW SUCH A FUEL MIGHT BEHAVE IN A BUILDING FIRE DECIDING THAT A TEST MIGHT BE IN ORDER MR GEHLHAUSEN JOKINGLY TOLD HIS BROTHERINLAW HE WAS LOOKING FOR A BUILDING TO BLOW UP TWO DAYS LATER HIS BROTHERINLAW A MANAGER WITH FRED MEYER INC AN OREGONBASED RETAILER CALLED AND SAID THERE WAS A STORE IN PUYALLUP WASH THAT THE CHAIN WANTED TO DEMOLISH MESSRS GEHLHAUSEN AND FOWLER AND A VOLUNTEER GROUP OF SOME OF THE NATION'S TOP FIRE RESEARCHERS BEGAN EXPERIMENTING WITH CHEMICAL COMPOUNDS THAT COULD BE PRODUCED USING EASYTOACQUIRE MATERIALS THEY NEEDED AN OXIDIZER A CHEMICAL COMPOUND CAPABLE OF BREAKING DOWN TO YIELD LARGE AMOUNTS OF OXYGEN BUT THEY NEEDED OTHER THINGS AS WELL INCLUDING A FLAMMABLE METAL TO PRODUCE THE INTENSE HEAT AFTER TESTING SOME TWO DOZEN COMPOUNDS THEY THOUGHT THEY HAD THE RIGHT STUFF THE INVESTIGATORS AND THEIR CADRE OF VOLUNTEERS GATHERED AT THE HIHO SHOPPING CENTER IN PUYALLUP BEFORE DAWN ON A BRISK DAY IN MARCH 1990 THEY PLACED THERMOCOUPLES DEVICES CAPABLE OF MEASURING TEMPERATURES AS HIGH AS 2600 DEGREES THROUGHOUT THE DONATED STRUCTURE INCLUDING UNDER A FIREMAN'S TURNOUT COAT THE INVESTIGATORS HAD HOPED TO HAVE 700 POUNDS OF FUEL BUT HAD USED UP SO MUCH IN TESTING THEY HAD ONLY 462 POUNDS TO BURN NOT NEARLY ENOUGH THEY BELIEVED TO DESTROY A WHOLE BUILDING IN RETROSPECT SAYS MICHAEL FITZ A SEATTLE FORENSIC ENGINEER WHO VOLUNTEERED HIS HELP TO THE INVESTIGATION AND WHO ACTUALLY LIT THE FIRE IT MIGHT HAVE BEEN FORTUITOUS THAT WE DIDN'T USE THE FULL QUANTITY SLENDER COLUMNS OF WHITEHOT ENERGY BLASTED FROM THE BUCKETS A THICK CLOUD OF VAPOR SPREAD ACROSS THE CEILING BUT OTHERWISE BY FIREFIGHTING STANDARDS NOT MUCH SEEMED TO BE HAPPENING IT LOOKED TENABLE IN THERE MR FITZ RECALLS AS IF YOU COULD HAVE GONE IN THERE WITH A HOSE AND BEGUN WORKING IT IN FACT THE ATMOSPHERE HAD BECOME DEADLY AFTER TWO MINUTES A PLUME OF FLAME BURST FROM A DOORWAY AND TRAVELED HORIZONTALLY FOR 40 FEET FORCING FIREFIGHTERS IN ITS PATH TO DIVE FOR COVER WE CAN KID ABOUT IT NOW SAYS MR HASEGAWA THE RESEARCHER BUT IF THEY'D BEEN CLOSER THEY'D HAVE BEEN DEAD FLASHOVER OCCURRED IN TWO MINUTES 25 SECONDS IN OTHER WORDS MR HASEGAWA AND A COLLEAGUE WROTE IN A REPORT ON THE TEST AT 225 MINUTES FROM IGNITION THE BUILDING IS A TOTAL LOSS UNDER NORMAL CIRCUMSTANCES THE FIRE DEPARTMENT WOULD NOT YET HAVE BEEN NOTIFIED THE THERMOCOUPLE ON THE FLOOR UNDER THE FIREMAN'S COAT GAVE THE MOST SOBERING TESTIMONY THE COAT WAS MADE TO KEEP A FIREMAN ALIVE EVEN IN TEMPERATURES AS HIGH AS 1300 DEGREES FOR THE FIRST 140 SECONDS THE TEMPERATURE INSIDE THE COAT STAYED AT 46 DEGREES THE NEXT INSTANT THE THERMOCOUPLE SHOWED A NEARLY VERTICAL INCREASE IN TEMPERATURE WITHIN TWO SECONDS THE TEMPERATURE TOPPED 500 DEGREES INSIDE THE COAT MORE THAN A HUMAN CAN ENDURE THAT MEANS SAYS DENNIS FOWLER IF YOU WERE LYING ON THE GROUND YOU'D HAVE TWO SECONDS TO GET OUT OF THERE ALTHOUGH THE INVESTIGATORS STILL DON'T KNOW THE EXACT COMPOUND THE ARSONIST USES THEY STILL HAVEN'T FOUND AN IDENTIFIABLE TRACE AT A FIRE SCENE THE TEST MR FOWLER SAYS AT LAST PROVIDED AN EXPLANATION FOR THINGS THAT PREVIOUSLY WERE NOT EXPLAINABLE NOW THE INVESTIGATORS ARE CONCENTRATING ON CATCHING THE ARSONIST WITNESSES REPORTED SEEING TWO MEN IN THE VICINITY OF THE BLACKSTOCK FIRE BUT OTHERWISE THE INVESTIGATORS HAVE FEW SOLID LEADS THE ARSONIST SEEMS TO HAVE A STRONG WORKING KNOWLEDGE OF CHEMISTRY AND STRUCTURAL ENGINEERING HE MAY EVEN BE AN AEROSPACE ENGINEER OR A FORMER MILITARY DEMOLITION EXPERT MR FOWLER SUSPECTS HE MAY SHIP HIS FUEL TO THE ARSON SITE LONG BEFORE THE FIRE THROUGH A MEANS DESIGNED NOT TO ATTRACT ATTENTION PERHAPS EVEN VIA A PARCELDELIVERY SERVICE ONE THING IS CERTAIN MR FOWLER SAYS THE ARSONIST IS A PROFESSIONAL NOT A PYROMANIAC OUT TO WATCH THINGS BURN IF THIS GUY WERE CRAZY WE'D HAVE CAUGHT HIM A LONG TIME AGO HE SAYS BUT THIS GUY IS A BUSINESSMAN SEE RELATED LETTER LETTERS TO THE EDITOR GALAXY FOODS DISPUTES STATEMENTS ABOUT FIRE NOV 29 1993 9310070016 YY93 MM11 9311260157 931126 POLITICS & POLICY CLINTON'S NOMINEE TO HEAD THE RTC MULLS WITHDRAWING BY RACHEL ENGLEHART STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STANLEY TATE PRESIDENT CLINTON'S NOMINEE TO HEAD THE RESOLUTION TRUST CORP IS CONTEMPLATING WHETHER TO WITHDRAW FROM CONSIDERATION BECAUSE OF OPPOSITION IN THE SENATE I'M OBVIOUSLY WEIGHING MY OPTIONS MR TATE SAID IN A TELEPHONE INTERVIEW YESTERDAY BUT RESPONDING TO NEWS REPORTS THAT HE ALREADY HAD ASKED PRESIDENT CLINTON TO WITHDRAW THE NOMINATION TO THE SAVINGSANDLOAN CLEANUP AGENCY MR TATE SAID IN ABSOLUTE EMPHATIC TERMS I HAVE NOT WITHDRAWN MY NAME MR TATE SAID HE HAS ASKED TO MEET PRESIDENT CLINTON TO DISCUSS THE MATTER AND THAT HE WILL DECIDE EARLY NEXT WEEK ON WHAT COURSE OF ACTION TO TAKE DEPUTY TREASURY SECRETARY ROGER ALTMAN WHO HAS BEEN RUNNING THE RTC AS ITS CHIEF EXECUTIVE OFFICER SAID YESTERDAY MR TATE HAS NOT WITHDRAWN HIS NOMINATION I AM NOT AWARE OF ANY PLANS TO DO SO THE NOMINATION OF MR TATE A REPUBLICAN FLORIDA REALESTATE DEVELOPER WHO WAS CHAIRMAN OF AN ADVISORY COMMITTEE TO THE RTC HAS BEEN HELD UP BY SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE DURING A RECENT COMMITTEE HEARING AT WHICH 13 RTC WHISTLEBLOWERS ALLEGED VARIOUS SORTS OF MISMANAGEMENT THE MICHIGAN DEMOCRAT SAID I DON'T INTEND TO CONFIRM ANYBODY UNTIL THERE IS A PLAN TO IMPROVE MANAGEMENT MR TATE SAID THAT SEN RIEGLE HAS REFUSED TO SCHEDULE A HEARING ON THE NOMINATION OR MEET WITH HIM IN THE FACE OF SUCH OPPOSITION MR TATE SAID I DON'T KNOW IF I CAN GET SENATE APPROVAL ANYMORE MR TATE HAS COME UNDER CRITICISM FOR INQUIRING INTO RTC MATTERS INCLUDING AN ENFORCEMENT CASE AGAINST A FAILED FLORIDA THRIFT ONCE RUN BY AN ACQUAINTANCE THESE MOVES HAVE SPARKED CHARGES THAT HE IS IMPROPERLY MEDDLING IN RTC AFFAIRS WHILE ONLY A NOMINEE THE DISPUTE COMES AT A DIFFICULT TIME FOR THE RTC ALTHOUGH CONGRESS THIS WEEK PASSED LEGISLATION TO FUND THE AGENCY'S WORK THE RTC REMAINS PLAGUED BY A VARIETY OF UNFILLED POSITIONS AND INTERNAL DISPUTES OVER HOW TO HANDLE THE SALE OF ASSETS FROM FAILED THRIFTS 9311260156 931126 TAXABLE FUND YIELDS ARE LITTLE CHANGED NEW YORK YIELDS ON TAXABLE MONEY MARKET FUNDS WERE LITTLE CHANGED WHILE MONEY MARKET MUTUAL FUND ASSETS ROSE ONLY SLIGHTLY IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND TAXABLEFUND YIELD EASED TO 270 FROM 271 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 267 WHILE THE 30DAY SIMPLE YIELD INCHED UP TO 266 FROM 265 THE 30DAY COMPOUND YIELD ROSE TO 270 FROM 269 THE AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD SLIPPED TO 198 FROM 199 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 309 FOR SOMEONE PAYING 36 IN TAXES AND TO 328 FOR THOSE WHO PAY 396 THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY WAS SHORTENED BY ONE DAY TO 66 DAYS ASSETS OF 624 TAXABLE FUNDS TRACKED BY MONEY FUND REPORT GREW BY 398 BILLION TO 48855 BILLION ASSETS OF 335 TAXEXEMPT FUNDS FIVE MORE THAN THE PREVIOUS WEEK INCREASED BY 117 BILLION TO 10691 BILLION ACCORDING TO THE NEWSLETTER MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC SEPARATELY THE INVESTMENT COMPANY INSTITUTE IN WASHINGTON SAID MONEY MARKET MUTUAL FUND ASSETS ROSE 5 MILLION TO 59493 BILLION FROM A REVISED 59488 BILLION ASSETS OF 651 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 2704 MILLION TO 39813 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 408 TAXABLE MONEY MARKET FUNDS GREW BY 309 MILLION TO 31174 BILLION ASSETS OF 243 RETAIL TAXEXEMPT FUNDS FELL BY 386 MILLION TO 864 BILLION ASSETS OF THE 273 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 2125 MILLION TO 1968 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 220 TAXABLE MONEY MARKET FUNDS FELL BY 2831 MILLION TO 17489 BILLION ASSETS OF 53 TAXEXEMPT FUNDS GREW BY 706 MILLION TO 2191 BILLION 9311260155 931126 ROYAL BANK OF SCOTLAND REPORTS PROFIT MORE THAN TRIPLED AT INSURANCE UNIT BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ROYAL BANK OF SCOTLAND REPORTED A MORETHANTHREEFOLD JUMP IN PROFIT AT ITS DIRECT LINE INSURANCE UNIT AND SAID IT PLANS TO BROADEN ITS TELEPHONE SELLING OF FINANCIAL PRODUCTS TO INCLUDE LOWCOST CONSUMER LOANS AND A NEW UNIT SPECIALIZING IN AUTO INSURANCE FOR DRIVERS OUTSIDE THE STANDARD RISK CATEGORIES DIRECT LINE SAID IT HAD PRETAX PROFIT OF 502 MILLION 747 MILLION FOR THE 12 MONTHS ENDED SEPT 30 UP FROM 152 MILLION AND WELL AHEAD OF ANALYSTS' ESTIMATES OF ABOUT 45 MILLION IN THE PAST TWO YEARS THE UNIT HAS EMERGED AS ONE OF THE BEST EXAMPLES IN EUROPE OF BANKS' DIVERSIFICATION IN THE FINANCIAL SERVICES INDUSTRY DIRECT LINE'S PROFIT WAS CALCULATED AFTER PAYMENT OF A 182 MILLION BONUS FOR ITS CHIEF EXECUTIVE PETER WOOD MAKING HIM BRITAIN'S HIGHESTPAID EXECUTIVE FOR THE SECOND YEAR IN A ROW LAST YEAR MR WOOD EARNED 6 MILLION UNDER A FORMULA LINKED TO THE GROWTH IN DIRECT LINE'S BUSINESS EARLIER THIS YEAR HE HAD BEEN EXPECTED TO EARN 10 MILLION FOR 199293 DIRECT LINE IS LIKELY TO ACCOUNT FOR NEARLY ONEFOURTH OF ROYAL BANK'S GROUP PRETAX EARNINGS FOR THE YEAR ENDED SEPT 30 SCHEDULED TO BE ANNOUNCED NEXT WEEK AND FORECAST AT ABOUT 215 MILLION AGAINST 21 MILLION FOR 199192 ROYAL BANK'S STOCK ROSE SHARPLY FOLLOWING THE DIRECT LINE NEWS CLOSING AT 375 PENCE ON THE LONDON STOCK EXCHANGE VERSUS 353 PENCE WEDNESDAY ANALYSTS WERE ENTHUSIASTIC ABOUT DIRECT LINE'S PROSPECTS THIS IS ONE OF THE MAJOR EVENTS IN THE UK FINANCIAL SECTOR OF THE LAST FEW YEARS SAID ROD BARRETT AN ANALYST AT GOLDMAN SACHS INTERNATIONAL LTD DIRECT LINE IS ON A VERY FAST GROWTH TRAJECTORY HE ADDED IT'S JUST A QUESTION AS TO WHAT IS THE STEEPNESS OF THE CURVE LAUNCHED EIGHT YEARS AGO BY MR WOOD A FORMER INSURANCE BROKER IN ASSOCIATION WITH ROYAL BANK DIRECT LINE HAS REVOLUTIONIZED BRITAIN'S CARINSURANCE MARKET BY SELLING INSURANCE BY TELEPHONE AT HIGHLY COMPETITIVE RATES UNTIL NOW IT HAS CONCENTRATED ON LOWRISK DRIVERS FITTING A STANDARD RANGE OF CATEGORIES IN A NEW VENTURE HOWEVER ROYAL BANK AND MR WOOD SAID THEY ARE SETTING UP A SUBSIDIARY TO TARGET MOTORISTS OUTSIDE THAT STANDARD RANGE DIRECT LINE ALSO PLANS TO OFFER LOWCOST CONSUMER LOANS TO SELECTED CUSTOMERS IN A STRATEGY BASED ON THE ASSUMPTION THAT PEOPLE WITH WHOM IT HAS A SATISFACTORY INSURANCE RELATIONSHIP ARE LIKELY TO BE ABOVE AVERAGE IN TERMS OF CREDIT WORTHINESS WITH MORE THAN 125 MILLION CARINSURANCE POLICY HOLDERS DIRECT LINE SAID IT HAS NOW BECOME BRITAIN'S LARGEST MOTOR INSURER OVERTAKING SUN ALLIANCE & LONDON INSURANCE PLC MR WOOD SAID DIRECT LINE AIMS TO HAVE TWO MILLION POLICY HOLDERS NEXT YEAR AND MORE THAN FOUR MILLION OR ABOUT 25 OF THE UK CAR INSURANCE MARKET IN THE LONGER TERM IT ALSO IS EXPANDING INTO THE HOUSEHOLD INSURANCE MARKET WHETHER IT CAN ACHIEVE ITS TARGET FOR THE CAR INSURANCE MARKET AND MAINTAIN ITS CURRENT HIGHPROFIT RATIOS WILL DEPEND TO A LARGE DEGREE ON HOW OTHER UK AUTO INSURERS RESPOND BUT GIVEN ITS LOW COST RATIOS 102 OF PREMIUM INCOME IN THE MOTOR SECTOR AGAINST AN INDUSTRY AVERAGE OF 27 DIRECT LINE MAINTAINS A CLEAR LEAD IN THE FIELD SUN ALLIANCE AND GUARDIAN ROYAL EXCHANGE ANOTHER LEADING CAR INSURER REALLY HAVE SOMETHING TO WORRY ABOUT SAID NICK BUNKER AN ANALYST AT HOARE GOVETT IF DIRECT LINE IS ALSO HEADING FOR THE NONSTANDARD SECTOR OF THE CARINSURANCE MARKET THAT IS ANOTHER BLOW AT THE HEART OF THE COMPOSITES HE SAID MR WOOD'S SENSATIONALLY HIGH EARNINGS HAVE ATTRACTED CONSIDERABLE MEDIA ATTENTION IN THE LAST 12 MONTHS UNDER AN AGREEMENT WITH ROYAL BANK HOWEVER A FORMULA FOR BONUSES LINKED TO THE GROWTH IN DIRECT LINE'S BUSINESS IS TO BE ENDED EARLY NEXT YEAR AND HE WILL IN FUTURE RECEIVE A SALARY OF 350000 AS PART OF THAT AGREEMENT MR WOOD WILL BE PAID A FURTHER BONUS OF 4 MILLION FOR THE PERIOD TO JAN 13 1994 THE DATE OF ROYAL BANK'S ANNUAL SHAREHOLDERS MEETING PLUS A SPECIAL BONUS OF 13 MILLION AND AN ADDITIONAL 7 MILLION PAYMENT INTO HIS PENSION SCHEME MR WOOD IN TURN HAS AGREED TO INVEST 8 MILLION IN ROYAL BANK SHARES RAISING THE MARKET VALUE OF HIS TOTAL HOLDING TO 10 MILLION OR ABOUT 035 OF THE BANK'S CAPITAL 9311260154 931126 STOKELY USA EXPECTS VEGETABLE PRICE RISE TO HELP BOTTOM LINE CHICAGO SHARPLY HIGHER VEGETABLE PRICES ARE EXPECTED TO HELP BOOST FISCAL 1994 RESULTS OF STOKELY USA INC VICE CHAIRMAN STEPHEN THEOBALD SAID HIGHER SWEET CORN SNAP BEANS AND PEA PRICES WILL HAVE A MAJOR POSITIVE IMPACT ON EARNINGS IN THE YEAR ENDING MARCH 31 MR THEOBALD SAID IN AN INTERVIEW HE SAID THE OCONOMOWOC WIS VEGETABLE PROCESSOR EXPECTS A SUBSTANTIAL IMPROVEMENT IN THE WAKE OF A FISCAL 1993 LOSS MR THEOBALD WASN'T MORE SPECIFIC BUT HIGHER VEGETABLE PRICES GENERALLY HELP STOKELY THE COMPANY CONTRACTS WITH FARMERS TO GROW THE VEGETABLES IT CANS AND FREEZES AS A RESULT THE PRICES IT PAYS ARE LARGELY SET BEFORE THE CROPS ARE PLANTED IF MARKET FORCES PUSH UP WHOLESALE PRICES SUCH AS THEY DID THIS YEAR STOKELY CAN POCKET AT LEAST SOME OF THE DIFFERENCE THE UNUSUALLY WET AND COOL WEATHER THAT HURT THE HARVESTS OF BIGGER CROPS SUCH AS FIELD CORN AND SOYBEANS ALSO REDUCED THE YIELD OF MIDWEST VEGETABLES THE DECLINE WAS COMPOUNDED BY THE DECISION OF SOME PROCESSORS LAST SPRING TO CONTRACT FOR LESS PRODUCTION IN ORDER TO REDUCE HIGH STOCKPILES THE AGRICULTURE DEPARTMENT IS FORECASTING THAT THE SWEET CORN SNAP BEAN AND PEA CROPS GROWN FOR PROCESSING FELL 35 18 AND 7 RESPECTIVELY FROM LAST YEAR AS A RESULT WHOLESALE PRICES OF SOME CANNED VEGETABLES ARE RISING SOME ANALYSTS EXPECT THE RALLY IN WHOLESALE VEGETABLE PRICES TO HELP STOKELY REBOUND FROM ITS FISCAL 1993 LOSS A RECENT REPORT BY KEVIN SKISLOCK AN ANALYST AT DAIN BOSWORTH INC PREDICTS STOKELY WILL EARN 80 CENTS A SHARE IN FISCAL 1994 THE COMPANY HAD A FISCAL 1993 LOSS OF 303 MILLION OR 366 A SHARE INCLUDING A 14 MILLION RESTRUCTURING CHARGE AND THE NEGATIVE IMPACT OF 17 MILLION FOR AN ACCOUNTING ADJUSTMENT IN ADDITION TO HIGHER WHOLESALE PRICES STOKELY'S RESULTS ARE BEING HELPED BY ITS EFFORTS TO LOWER OPERATING COSTS STOKELY ANNOUNCED PLANS EARLIER THIS YEAR TO CLOSE OR SELL SEVERAL PLANTS A MOVE AIMED AT REDUCING CAPACITY BY ABOUT 25 9311260152 931126 LEISURE & ARTS ON SPORTS PORTLAND BLAZES FREEAGENT TRAIL BY FREDERICK C KLEIN A FUNNY THING HAPPENED TO THE NATIONAL BASKETBALL ASSOCIATION ON ITS WAY TO NEGOTIATIONS FOR A NEW LABOR CONTRACT MANAGEMENT OR AT LEAST THE MANAGEMENT OF THE PORTLAND TRAIL BLAZERS HELPED THE UNION MAKE A POINT IT HAS LONG WANTED TO MAKE THE BLAZERS DID IT IN THE RECENT OFFSEASON BY SIGNING CHRIS DUDLEY A SOUGHTAFTER FREEAGENT CENTER TO A CONTRACT THAT WAS MODEST BY CURRENT STANDARDS AND ALLOWED THEM BOTH TO HAVE DUDLEY AND STILL CONFORM TO THE LEAGUE'S SALARY CAP BUT THE PACT ALSO INCLUDED A CLAUSE GIVING THE DEFENSIVE SPECIALIST THE OPTION OF BECOMING A FREE AGENT AGAIN AFTER A YEAR BECAUSE PAYMENTS TEAMS MAKE TO KEEP THEIR OWN FREE AGENTS DON'T COUNT AGAINST THE CAP PORTLAND CAN REENLIST DUDLEY NEXT SEASON FOR A SUM THAT BETTER REFLECTS HIS MARKET VALUE IT WAS A TRANSPARENT RUSE AND THE LEAGUE SAW THROUGH IT IT CRIED FOUL AND TOOK THE TEAM TO COURT TO TRY TO INVALIDATE THE AGREEMENT THE COURT HOWEVER RULED FOR DUDLEY AND THE BLAZERS THIS SURPRISED MANY BUT NOT CHARLES GRANTHAM THE EXECUTIVE DIRECTOR OF THE NATIONAL BASKETBALL PLAYERS ASSOCIATION THE ONEYEAR FREEAGENCY OPTION HAS BEEN OK SINCE THE CAP WAS NEGOTIATED IN 1983 IT WAS JUST THAT THE LEAGUE NEVER EXPECTED ONE OF ITS TEAMS TO PERMIT IT TO BE USED SAYS GRANTHAM WE THE UNION ACTIVELY ENCOURAGED CHRIS AND HIS AGENT TO GO AFTER SUCH A CLAUSE WE THOUGHT IT WOULD HELP CHRIS GET THE DEAL HE WANTED AND MAKE THE POINT THAT SOME OF THE TEAMS ARE AS UNHAPPY WITH THE CAP AS WE ARE HE GOES ON I THINK THAT FEW THINGS IN SPORTS HAVE BEEN AS POORLY UNDERSTOOD AS THE NBA SALARY CAP WE AS A UNION WOULD LIKE TO SOLVE THAT PROBLEM BY GETTING RID OF IT THAT LAST STATEMENT CONTAINS NO LITTLE IRONY POPULAR WISDOM HAS IT THAT A GOOD PART OF THE NBA'S REMARKABLE ASCENDANCE OVER THE PAST 10 YEARS IS TRACEABLE TO A LABORMANAGEMENT PARTNERSHIP OF WHICH THE CAP IS THE MOST VISIBLE MANIFESTATION NATIONAL FOOTBALL LEAGUE OWNERS AND THE PLAYERS' UNION INCLUDED A SALARY CAP IN THEIR RECENTLY CONCLUDED LABOR ACCORD THE MAJOR LEAGUE BASEBALL OWNERS SAY THEY'D LIKE TO SEE ONE EMERGE FROM THEIR NEXT ROUND OF LABOR NEGOTIATIONS BUT WITH THEIR PACT EXPIRING AT THE END OF THE PRESENT CAMPAIGN AND TALKS ON A NEW ONE SCHEDULED TO BEGIN IN FEBRUARY THE NBPA WANTS TO JETTISON THE THING THE CAP IS GOOD PUBLIC RELATIONS FOR THE LEAGUE I SUPPOSE BUT IT WAS NEGOTIATED UNDER CONDITIONS THAT NO LONGER EXIST SAYS THE DAPPER 50YEAROLD GRANTHAM A FORMER COLLEGIATE BASKETBALL PLAYER AT CHEYNEY STATE UNIVERSITY WHOSE INTERESTING RESUME INCLUDES A STINT AS DIRECTOR OF ADMISSIONS AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL AND PERSONNEL JOBS WITH GENERAL ELECTRIC CO AND RCA CORP AS FOR OUR PARTNERSHIP WITH THE OWNERS WELL WE'RE HAPPY TO COOPERATE IN SOME THINGS AT SOME TIMES BUT WHEN IT COMES TO MONEY THE RELATIONSHIP IS AND SHOULD BE ADVERSARIAL LEST ONE FORGET THE NBA OF 1983 WAS NOT THE PROSPEROUS CONFIDENT ENTITY IT IS TODAY IT HAD TOO MUCH RED INK IN ITS BOOKS WITH A HALFDOZEN TEAMS WALKING THE SOLVENCY TIGHTROPE AND BY MANY ESTIMATES TOO MANY BLACK PLAYERS ON ITS ROSTERS TO ATTRACT THE BIGTIME CORPORATE SPONSORS WHOSE IMPRIMATUR MAKES THE TV TYPES SALUTE IT ALSO WAS BESET BY THE PERCEPTION OF WIDESPREAD PLAYER DRUG USE THE SALARY CAP COMBINED WITH REVENUE SHARING THE PLAYERS GET 53 OF CERTAIN GROSS RECEIPTS HELPED PUT THE FINANCIAL HOUSE IN ORDER WHILE A GROUNDBREAKING AND TOOTHFILLED NBA/NBPA DRUG POLICY COOLED THAT ISSUE AND WHEN SUCH CHARISMATIC STARS AS MAGIC JOHNSON MICHAEL JORDAN AND CHARLES BARKLEY EMERGED CORPORATE AMERICA AGREED THAT BLACK COULD BE BEAUTIFUL THE CAP HOWEVER CONTAINS SO MANY WRINKLES THAT IT HAS NEVER COME CLOSE TO ACHIEVING ITS ADVERTISED AIM OF PARITY WHILE IT NOW STANDS AT ABOUT 15 MILLION A TEAM THE PAYROLLS OF THE NEW YORK KNICKS CLEVELAND CAVALIERS BOSTON CELTICS ATLANTA HAWKS AND OTHERS REPORTEDLY RANGE FROM 20 MILLION TO ALMOST 25 MILLION MOREOVER SQUABBLES OVER SOME CLUBS' ALLEGED UNDERREPORTING OF REVENUE APPLICABLE TO SALARIES THROUGH SUCH PLOYS AS ROUTING THEIR LOCALTV TAKE THROUGH FIRMS CONTROLLED BY TEAM OWNERS LED TO AN NBPA LAWSUIT THAT WAS SETTLED IN 1991 WITH THE PLAYERS DIVIDING AN ADDITIONAL 62 MILLION DO PARTNERS DECEIVE ONE ANOTHER NEXT QUESTION THE AVERAGE PLAYER'S SALARYANDBENEFITS PACKAGE DURING THE YEARS IN QUESTION HAS RISEN TO ABOUT 15 MILLION FROM ABOUT 250000 BUT GRANTHAM SAYS THAT HASN'T MATCHED THE RATE OF INCREASE OF REVENUE THAT DOESN'T CONTRIBUTE TO THE PAY POOL SUCH AS MONEYS FROM EXPANSION FEES AND THE SALE OF LICENSED MERCHANDISE AND HE NOTES THAT FOR ALL ITS TWISTS THE CAP HAS PUT A REAL CRIMP IN THE SALARIES THAT FREEAGENT PLAYERS CAN COMMAND THE WAY IT IS NOW A FREE AGENT'S BEST SHOT MONEYWISE USUALLY IS WITH HIS PRESENT TEAM HE ASSERTS THAT'S NOT ACCEPTABLE TO US AND AS THE DUDLEY CASE SHOWED IT'S NOT ACCEPTABLE TO SOME OF THE CLUBS EITHER THE CAP SEVERELY LIMITS TEAMS' FLEXIBILITY IN SIGNING FREE AGENTS AND MAKING DEALS TO IMPROVE THEMSELVES I THINK THAT IF YOU TOOK A POLL OF GENERAL MANAGERS AROUND THE LEAGUE AND PROMISED NOT TO REPORT THE FINDINGS TO THE OWNERS YOU'D SEE THAT MOST OF THE GMS DISLIKE THE CAP AS MUCH AS WE DO BUT NEGOTIATIONS ARE NEGOTIATIONS AND GRANTHAM WHO JOINED THE NBPA IN 1978 AND HAS HEADED IT FOR THE PAST FIVE YEARS IS SUITABLY CAGEY WHEN IT COMES TO DRAWING LINES BEFORE THE TALKS YES HE SAYS HE WANTS TO GET RID OF THE CAP BUT NO HE'S NOT SAYING HE WANTS TO JUNK ITS PERCENTAGEOFGROSS COMPANION ESPECIALLY IF THAT PERCENTAGE COULD BE UPPED TO SAY 58 OR 60 OR 63 AND MADE TO INCLUDE ALL THAT NBALICENSED GEAR THAT'S BEING GOBBLED UP WORLDWIDE BUT DOESN'T SUCH A SHARING PLAN IMPLY A WAGE CEILING HE'S ASKED HOW ABOUT IF WE LOOK AT IT AS A FLOOR SAYS HE 9311260151 931126 BUSINESS BRIEF ROYAL BANK OF CANADA PLANS TO CUT 77 OF ITS WORK FORCE IN FISCAL 1994 THE STAFF CUTS COME IN THE WAKE OF THE BANK'S 165 BILLION CANADIAN DOLLAR US124 BILLION ACQUISITION OF THE OPERATIONS OF THE FORMER ROYAL TRUSTCO LTD IN SEPTEMBER EARLIER THIS MONTH ROYAL BANK SAID IT WILL RECORD A C410 MILLION CHARGE AGAINST ITS RESULTS FOR THE FOURTH QUARTER ENDED OCT 31 REFLECTING THE COSTS OF RESTRUCTURING THE ROYAL TRUSTCO OPERATIONS AND FURTHER STREAMLINING AT THE BANK ITSELF JOHN CLEGHORN PRESIDENT AND CHIEF OPERATING OFFICER OF THE BANK SAID HE HOPES TO ACHIEVE MANY OF THE JOB CUTS THROUGH ATTRITION AND FINDING NEW POSITIONS FOR EMPLOYEES IN PARTS OF THE BANK THAT ARE EXPERIENCING GROWTH A MAJOR ACQUISITION OF THE KIND WE'VE JUST BEEN THROUGH CREATES OVERLAPS MR CLEGHORN SAID THAT'S WHAT WE'VE GOT TO ADDRESS AS PART OF THE RESTRUCTURING ROYAL BANK PLANS TO CLOSE ABOUT ONETHIRD OF THE 143 ROYAL TRUSTCO BRANCHES IT ACQUIRED IN CANADA MR CLEGHORN SAID HE EXPECTS ONTARIO AND QUEBEC BRANCHES TO CARRY THE BRUNT OF THE SHUTDOWNS THIS ISN'T ROYAL BANK'S FIRST MAJOR WORKFORCE REDUCTION OVER THE PAST TWO YEARS THE BANK HAS CUT 3000 JOBS FROM ITS PAYROLL A PROCESS THAT RESULTED IN 400 DISMISSALS IN THE WAKE OF THE ROYAL TRUSTCO ACQUISITION THE BANK HAS 53000 EMPLOYEES THE BANK BLAMED THE STILL STRUGGLING CANADIAN ECONOMY FOR SOME OF ITS WOES ROYAL BANK EXPECTS TO TAKE LOANLOSS PROVISIONS OF C102 BILLION IN THE FOURTH QUARTER OF FISCAL 1993 BOOSTING ITS PROVISIONS FOR THE YEAR TO C175 BILLION WE'RE TAKING STEPS TO IMPROVE THE QUALITY OF OUR LOAN PORTFOLIO MR CLEGHORN SAID ROY PALMER A FINANCIAL SERVICES ANALYST AT BUNTING WARBURG INC A TORONTO INVESTMENT DEALER SAID MANY SENIOR CREDIT MANAGERS HAVE LOST THEIR JOBS IN THE WAKE OF THE COLLAPSE OF REAL ESTATE GIANT OLYMPIA & YORK DEVELOPMENTS LTD OTHER BANKS HAVEN'T SEEN THE SAME KIND OF LOAN LOSSES THAT ROYAL HAS MR PALMER SAID ADDING THAT THE BANK HAS FAILED TO COVER ITS DIVIDEND IN THE PAST TWO FISCAL YEARS 9311260150 931126 STELCO CANCELS AGREEMENT HAMILTON ONTARIO STELCO INC A STEEL PRODUCER SAID IT WON'T PROCEED WITH ITS PREVIOUSLY ANNOUNCED PLAN UNDER WHICH THE COMPANY WOULD PAY A FEE TO A FINANCIAL INSTITUTION FOR THE INSTITUTION TO PURCHASE AND EXERCISE STELCO WARRANTS STELCO DIDN'T DISCLOSE THE NAME OF THE INSTITUTION 9311260149 931126 RATINGS ARE CUT ON ONTARIO'S DEBT BY TWO SERVICES BY ANDREW WILLIS STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO STANDARD & POOR'S CORP AND DOMINION BOND RATING SERVICE LTD DOWNGRADED THEIR CREDIT RATINGS ON DEBT ISSUED BY THE PROVINCE OF ONTARIO IN THE WAKE OF AN ANNOUNCEMENT THAT FALLING REVENUE IS WIDENING ITS DEFICIT AT LEAST ONE OTHER RATING SERVICE MONTREALBASED CANADIAN BOND RATING SERVICE SAID IT WILL MAKE A DECISION ON ONTARIO'S 75 BILLION CANADIAN DOLLAR US56 BILLION DEBT LOAD BY EARLY NEXT WEEK AN ONTARIO GOVERNMENT OFFICIAL SAID MOODY'S INVESTORS SERVICES INC ISN'T EXPECTED TO REVIEW ITS DOUBLE A2 RATING ON ONTARIO DEBT UNTIL NEXT SPRING'S BUDGET CITING THE WEAKENED RESOLVE OF THE ONTARIO GOVERNMENT TO TAKE UNPOPULAR EXPENDITURE ADJUSTMENTS S&P ON WEDNESDAY CUT ITS RATING ON DEBT ISSUED BY THE PROVINCE TO DOUBLEAMINUS FROM DOUBLEA DOMINION BOND RATING ALSO CUT ITS OWN RATING TO SINGLEA HIGH FROM DOUBLE A LOW THE DOWNGRADES CAME AT A TIME WHEN ONTARIO STILL NEEDS TO RAISE ANOTHER C36 BILLION THIS FISCAL YEAR ENDING MARCH 31 1994 ALTOGETHER THE PROVINCE SAID IT WILL BORROW A TOTAL OF C117 BILLION IN THE CURRENT FISCAL YEAR ECONOMISTS PROJECT C10 BILLION OF NEW DEBT WILL BE REQUIRED IN THE NEXT FISCAL YEAR FLOYD LAUGHREN ONTARIO'S FINANCE MINISTER SAID HE WAS SURPRISED AND DISAPPOINTED BY THE DECISION GIVEN THE RIGOROUS SPENDING CONTROLS WE HAVE IMPLEMENTED OVER THE LAST FEW YEARS THE PROVINCE'S NEW DEMOCRATIC PARTY GOVERNMENT HAS CUT C200 MILLION FROM ITS C499 BILLION BUDGET THIS FISCAL YEAR AND EXPECTS FURTHER COST SAVINGS NEXT YEAR FROM MEASURES SUCH AS ENFORCED UNPAID LEAVES FOR CIVIL SERVANTS MR LAUGHREN DECLINED TO ESTIMATE HOW MUCH MORE THE PROVINCE MIGHT HAVE TO PAY IN INTEREST EXPENSE AS A RESULT OF THE DOWNGRADE BUT GERRY PHILLIPS FINANCE SPOKESMAN FOR ONTARIO'S OPPOSITION LIBERAL PARTY ESTIMATED IT WOULD COST AN EXTRA C25 MILLION ANNUALLY S&P ALSO DOWNGRADED ITS RATINGS ON OBLIGATIONS OF ONTARIO HYDRO GUARANTEED BY THE PROVINCE WHICH OWNS THE ELECTRIC UTILITY TO DOUBLEAMINUS FROM DOUBLEA HYDRO HAS ABOUT C35 BILLION IN DEBT OUTSTANDING INVESTMENT DEALERS SAID THE REDUCED RATINGS WON'T HAMPER THE PROVINCE'S ABILITY TO ISSUE DEBT INTERNATIONALLY CANADIAN BOND AND CURRENCY MARKETS SHOWED LITTLE REACTION YESTERDAY TO THE ONTARIO RATING CUTS 9311260146 931126 LEISURE & ARTS ON DISK REVIVING RACHMANINOFF BY BARRYMORE LAURENCE SCHERER ALL THOSE NOTES THINK I AND TO WHAT END WAS AARON COPLAND'S PUTDOWN OF SERGEI RACHMANINOFF BUT AS ALWAYS THE PENDULUM HAS REVERSED AND NOW 50 YEARS AFTER HIS DEATH RACHMANINOFF'S IMAGE IS BRIGHT AS EVER AND HIS POPULARITY STILL STRONG AND BROAD THE PIANIST RUTH LAREDO ONE OF HIS MOST ENERGETIC EXPONENTS SEES RACHMANINOFF'S APPEAL PARTLY AS A REACTION TO THE RAMPANT INSINCERITY OF MODERN CULTURE AT A TIME WHEN THE WORLD IS FILLED WITH SPIN DOCTORS IMAGE MAKERS AND ALL KINDS OF MANUFACTURED TRUTHS I THINK THE PUBLIC RECOGNIZES SOMETHING GENUINE IN RACHMANINOFF'S DEEPLY PERSONAL EXPRESSION OF HIS EMOTION MS LAREDO WHOSE PIONEERING RECORDINGS OF RACHMANINOFF'S COMPLETE SOLO PIANO MUSIC HAVE RECENTLY BEEN RERELEASED ON CD SONY CLASSICAL HAS BEEN PLAYING THE COMPOSER'S FIRST PIANO CONCERTO ON TOUR WITH THE WARSAW PHILHARMONIC IN EUROPE AND AMERICA FOLLOWING RECENT APPEARANCES FROM FLORIDA TO CARNEGIE HALL SHE EMBARKS UPON A THREEPART HOMAGE TO RACHMANINOFF AT NEW YORK'S METROPOLITAN MUSEUM OF ART ON DEC 3 WITH A LECTURERECITAL PROVIDING AN OVERVIEW OF THE COMPOSER'S LIFE SUBSEQUENT PROGRAMS IN JANUARY AND MARCH WILL FOCUS RESPECTIVELY ON RACHMANINOFF'S CHAMBER MUSIC JAN 14 AND HIS WORKS FOR TWO PIANOS MARCH 4 THE LAST CONCERT WITH PIANIST JACQUES ROUVIER WILL FEATURE THE NEW YORK PREMIERE OF THE UNPUBLISHED 1938 TWOPIANO ARRANGEMENT OF THE PRELUDE IN CSHARP MINOR NEW YORK HAS ALREADY WITNESSED ANOTHER RACHMANINOFF PREMIERE THIS YEAR THE FIRST AMERICAN PERFORMANCE OF HIS FORGOTTEN OPERA THE MISERLY KNIGHT WHICH WAS PERFORMED AT CARNEGIE HALL AS PART OF A GALA RACHMANINOFF CONCERT BY THE NEW MOSCOW STATE PHILHARMONIC ESTABLISHED IN 1986 CONDUCTED BY THE ORCHESTRA'S MUSIC DIRECTOR VLADIMIR PONKIN IT WAS A REVELATION RACHMANINOFF BASED THE OPERA DIRECTLY ON A BRIEF BITTER TRAGICOMEDY BY PUSHKIN ABOUT A MAN WHOSE MISERLINESS FINALLY CHOKES HIM WRITTEN IN WAGNERIAN ENDLESS MELODY THE OPERA FARED POORLY AFTER ITS FIRST PERFORMANCE IN 1906 BUT THE NEGLECT WAS UNJUSTIFIED TRUE THERE'S NOT MUCH STAGE ACTION AND THE FIRST SCENE SOUNDS LIKE PURE MUSSORGSKY BUT IN THE SECOND AND THIRD SCENES RACHMANINOFF'S DISTINCTIVE HARMONIC LANGUAGE RISES TO THE FORE AND RACHMANINOFF'S ORCHESTRATION IS RICHER AND MORE FASCINATING THAN MUSSORGSKY'S BASSBARITONE ALEXANDRE BASKIN WHO SANG THE TITLE ROLE IS A WORTHY SUCCESSOR TO THE LEGENDARY FEODOR CHALIAPIN BASKIN A LEADING SINGER OF THE EKATERINBERG OPERA IS WORLDCLASS HIS SUBTLE CHARACTERIZATION OF THE MISER LUSTING AFTER HIS GOLD LIKE A MEDIEVAL ALBERICH PROVED HOW VOICE AND ACTING SKILL CAN OVERCOME AN UNPREPOSSESSING PHYSIQUE EVEN WITHOUT HELP FROM COSTUMES THE GALA WHICH ALSO INCLUDED THE ISLE OF THE DEAD AND THE RHAPSODY ON A THEME OF PAGANINI WAS PRODUCED BY THE INTERNATIONAL ASSOCIATION OF SERGEI RACHMANINOFF FOUNDED THREE YEARS AGO BY ALEXANDRE RACHMANINOFF THE SON OF RACHMANINOFF'S YOUNGER DAUGHTER TATYANA AND OF THE LATE BORIS CONUS A PARIS ART DEALER MR RACHMANINOFF A SPECIALIST IN GOLD STOCKS BY PROFESSION IS A RECLUSIVE CHARACTER WORTHY OF HIS GRANDFATHER HE NORMALLY COMMUNICATES BY FAX EVEN HIS AMERICAN PUBLICIST DOESN'T HAVE HIS PHONE NUMBER APART FROM PRODUCING THESE CONCERTS MR RACHMANINOFF'S CHIEF GOAL IS APPARENTLY TO PROVE TO THE WORLD THAT THE FAMILIAR STONEFACED IMAGE OF THE COMPOSER IS INACCURATE WAS IT A FACADE I ASK NOT AT ALL REPLIED MR RACHMANINOFF IN A RARE PHONE CALL FROM HIS GRANDFATHER'S VILLA WHERE HE SAYS HE SPENT MUCH OF HIS EARLY CHILDHOOD WHEN HE WAS COMPOSING HE COULD OF COURSE APPEAR COLD AND DISTANT BUT AFTER 5 PM HE WOULD EMERGE FROM HIS STUDIO A CHANGED MAN RUNNING LAUGHING PLAYING CARDS EVERY DAY AT LUNCHTIME RACHMANINOFF WOULD INVITE HIS GRANDSON TO JOIN HIM IN A QUARTERHOUR OF FOURHAND PIANO MUSIC NEVER HIS OWN WORKS BUT SIMPLE PIECES BY MOZART OR BEETHOVEN IT WAS OUR GAME TO REVEAL THE TRUE HAPPYGOLUCKY COMPOSER TO A SKEPTICAL WORLD MR RACHMANINOFF AND THE RUSSIAN TELEVISION COMPANY ECRAN COPRODUCED SERGEI RACHMANINOFF THE ROAD TO ETERNITY A 52MINUTE DOCUMENTARY FILM NARRATED IN ENGLISH INCORPORATING FOOTAGE OF HOME MOVIES THAT SHOW THE COMPOSER ROMPING IN THE GARDEN WITH HIS GRANDCHILDREN AND HIS DOG AT PRESENT MR RACHMANINOFF SAYS HE IS INVESTIGATING DISTRIBUTION IN GERMANY AND THE US THOUGH HE SPRINKLES HIS CONVERSATION WITH MUCH CHUCKLING AND WIT MR RACHMANINOFF CONVEYS THE IMPRESSION OF IMMENSE SADNESS EMPHASIZING THAT THE TRAGEDY OF HIS OWN LIFE IS HIS OWN CHILDREN'S LACK OF ENTHUSIASM FOR MUSIC THEY HAVE APPARENTLY NOT ATTENDED ANY OF HIS RACHMANINOFF CONCERTS I AM THE LAST MUSICAL GENERATION HE SAYS AFTER ME NOTHING PERHAPS THE YOUNGER RACHMANINOFFS WILL SURPRISE THEIR FATHER AND CELEBRATE THEIR GREAT GRANDFATHER'S ANNIVERSARY WITH THE COMPOSER HIMSELF THROUGH THE SUPERBLY PRODUCED 10CD SET OF HIS COMPLETE RECORDINGS AS PIANIST AND CONDUCTOR RCA VICTOR GOLD SEAL AMONG THE HIGHEST POINTS IN THIS DISTINGUISHED COLLECTION ARE THE EXTRAORDINARILY SUPPLE 1929 PERFORMANCE OF THE ISLE OF THE DEAD AND THE GORGEOUS 1939 THIRD SYMPHONY BOTH WITH THE PHILADELPHIA ORCHESTRA UNDER THE COMPOSER'S BATON AND THE 1929 RECORDING OF THE SECOND PIANO CONCERTO WITH THE PHILADELPHIA ORCHESTRA UNDER LEOPOLD STOKOWSKI OF THE SOLO PIANO WORK IT'S HARD TO CHOOSE THOUGH THE 1938 PRIVATE RECORDING OF HIS OWN POLKA ITALIENNE DUO WITH HIS WIFE NATALIE IS A RARITY TO TREASURE THEN THERE ARE THE TOUCHSTONE PERFORMANCES OF CHOPIN AND LISZT NOT TO MENTION THE GRIEG VIOLIN SONATA IN CMINOR WITH FRITZ KREISLER IT IS A LEGACY EVEN THE MUSICALLY DISAFFECTED CHILDREN OF A FAROUCHE GOLD TRADER COULD LEARN TO LOVE MR SCHERER WRITES THE LETTER FROM NEW YORK FOR GRAMOPHONE MAGAZINE 9311260145 931126 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED NOV 19 ACCOUNTED FOR 123 OR AN AVERAGE 364 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING RELATED TO THE NOV 19 MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL 142 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 483 INVOLVED STOCKINDEX ARBITRAGE UP FROM 352 IN THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 535 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 371 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 94 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOST ACTIVE FIRMS SUSQUEHANNA NOMURA SECURITIES UBS SECURITIES AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9311260144 931126 UNITED ASSET MANAGEMENT PACT BOSTON UNITED ASSET MANAGEMENT CORP SAID IT AGREED TO ACQUIRE GSB INVESTMENT MANAGEMENT INC A FORT WORTH TEXAS INVESTMENT MANAGER WITH 24 BILLION IN ASSETS UNDER MANAGEMENT TERMS WEREN'T DISCLOSED LIKE MOST OF THE 36 MONEYMANAGEMENT FIRMS IN UNITED ASSET'S GROUP GSB WILL CONTINUE TO OPERATE UNDER ITS OWN NAME UNITED ASSET HAS 96 BILLION UNDER MANAGEMENT AND PREVIOUSLY HAS ACQUIRED SIX MONEY MANAGERS THIS YEAR 9311260143 931126 THEY HIRED SOMEONE TO FIND OUT IF PEOPLE REALLY LIKE CHOCOLATE BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL PRINCETON NJ SELL EVERY PERSON IN CHINA JUST ONE CHOCOLATE BAR AND WATCH THE RICHES ROLL IN BUT DO THE CHINESE LIKE CHOCOLATE OUT TO FIND OUT ON BEHALF OF THE US'S CHOCOLATE MANUFACTURERS ASSOCIATION IS GALLUP CHINA LTD THE NEWEST ARM OF INTERNATIONAL RESEARCH CONCERN GALLUP ORGANIZATION AFTER TWO YEARS OF NEGOTIATIONS GALLUP HAS RECEIVED A BUSINESS LICENSE FROM THE CHINESE GOVERNMENT WITH PLANS FOR THREE MAJOR OFFICES AND 18 BRANCH OPERATIONS STRETCHING FROM BEIJING TO THE CHINESE HINTERLANDS GALLUP WILL SPEND BETWEEN 5 MILLION AND 10 MILLION IN THE NEXT THREE YEARS TO DEVELOP ITS CHINESE PRESENCE SAYS JIM CLIFTON CHIEF EXECUTIVE OFFICER AT GALLUP ORGANIZATION THE FIRM HAS STARTED QUIZZING CHINESE CONSUMERS ABOUT THEIR SWEET TEETH FOR ITS FIRST TWO CLIENTS THE CHOCOLATE MAKERS AND THE WASHINGTON APPLE COMMISSION THERE ARE SO MANY THINGS WE DON'T KNOW SAYS RICHARD BURKHOLDER DIRECTOR OF WORLDWIDE OPERATIONS AT GALLUP DO CHINESE PEOPLE EAT CHOCOLATE DO THEY LIKE CHOCOLATE DO WE HAVE TO CHANGE THE WAY IT TASTES THEN THERE IS THE DIFFICULTY OF APPROACHING CITIZENS RELUCTANT TO CONFIDE IN SNOOPY FOREIGNERS IT CAN BE DONE SAYS MR BURKHOLDER BUT YOU HAVE TO MAKE THE PHRASEOLOGY NONTHREATENING AND ENGAGING AND IT'S CRITICAL TO HAVE A CHINESE ASKING THE QUESTIONS SNAGS OCCUR SURVEY SUBJECTS PAUSED WHEN ASKED WHY THEY ANSWERED A PREVIOUS QUESTION ABOUT RECENT PURCHASES THE WAY THEY DID THEN SAYS PROJECT MANAGER MEI LU THEY OVERWHELMINGLY RESPONDED BECAUSE IT'S TRUE THAT'S WHY OLDER CHINA HANDS URGE CAUTION ABOUT EXPECTATIONS IN A COUNTRY WHOSE POPULATION RANGES FROM MONGOLS ON CAMELS TO SHANGHAI EXECUTIVES THE SHEER VASTNESS OF THE COUNTRY MAKES IT DIFFICULT NOTES SIMON CHADWICK CHAIRMAN OF RIVAL RESEARCH CONCERN RESEARCH INTERNATIONAL USA WHICH FROM ITS OFFICES IN HONG KONG HAS CONDUCTED RESEARCH IN CHINA FOR MORE THAN 15 YEARS STILL USEFUL INFORMATION IS ATTAINABLE TOM MATHISON A WASHINGTON STATE APPLE GROWER WHO JOURNEYED TO CHINA FOR THE APPLE POLL FOUND THAT AMONG CHINESE RED IS VERY POPULAR IF SOMETHING IS RED IT'S GOOD FOR YOUR HEALTH GOOD FOR YOUR BLOOD WHILE HE HASN'T LOOKED AT IT QUITE THAT WAY RED IS WHAT WE GROW SO IT MIGHT WORK OUT PRETTY WELL 9311260142 931126 COURT BLOCKS ACQUISITION OF PARAMOUNT BY VIACOM JUDGE SAYS BOARD REJECTION OF QVC'S BID VIOLATED DUTY TO SHAREHOLDERS BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL IN A STINGING REBUKE TO PARAMOUNT COMMUNICATIONS INC A DELAWARE JUDGE BLOCKED THE PROPOSED 95 BILLION FRIENDLY TAKEOVER OF THE MEDIA GIANT BY VIACOM INC SAYING PARAMOUNT'S BOARD ACTED IMPROPERLY IN REJECTING A HIGHER 105 BILLION BID BY QVC NETWORK INC UNLESS OVERRULED BY THE DELAWARE SUPREME COURT THE JUDGE'S DECISION WILL PUT QVC THE CABLETELEVISION HOMESHOPPING CONCERN LED BY FORMER PARAMOUNT STUDIO CHIEF BARRY DILLER ON AN EQUAL FOOTING IN BIDDING FOR PARAMOUNT AGAINST VIACOM A CABLETV COMPANY THAT OWNS MTV NICKELODEON AND SHOWTIME VIACOM WOULD THEN HAVE TO RAISE ITS 7938ASHARE BID IN ORDER TO COMPETE WITH QVC'S BID NOW VALUED AT 8720 A SHARE IN HIS RULING WEDNESDAY JACK B JACOBS VICE CHANCELLOR OF THE DELAWARE CHANCERY COURT THREW OUT A LOCKUP OPTION VALUED AT 428 MILLION THAT PARAMOUNT GRANTED VIACOM SAYING THE PARAMOUNT DIRECTORS HAD BREACHED THEIR FIDUCIARY DUTY BECAUSE THE LOCKUP DISCOURAGED OTHER BIDS THE JUDGE ALSO SAID THE BOARD DIDN'T TRY TO OBTAIN ENOUGH INFORMATION ABOUT THE LATEST QVC BID THE JUDGE'S ORDER IS THE LATEST TWIST IN A TITANIC 10WEEK MULTIMEDIA BATTLE INVOLVING SOME OF THE BIGGEST NAMES IN THE ENTERTAINMENT BUSINESS EACH SIDE HAS ENLISTED GIANT REGIONAL TELEPHONE COMPANIES AND OTHER MEDIA CONCERNS AS INVESTORS IN EXTRAORDINARY ALLIANCES TO HELP FINANCE THEIR BIDS ONE LAWYER INVOLVED IN THE CASE SAID NO COURT HAS EVER ENJOINED A TAKEOVER THIS BIG THE ORDER BARS PARAMOUNT FROM DROPPING ITS POISONPILL ANTITAKEOVER DEFENSE TO ALLOW VIACOM'S BID TO PROCEED WHILE KEEPING IT IN PLACE AGAINST QVC THE POISONPILL MAKES A HOSTILE BID PROHIBITIVELY EXPENSIVE THE DECISION COULD PUT NEW LIMITS ON THE RIGHTS OF CORPORATE DIRECTORS TO PURSUE BUSINESS STRATEGIES AT THE EXPENSE OF IMMEDIATE BENEFITS FOR SHAREHOLDERS IN A 1990 DECISION THE DELAWARE SUPREME COURT ALLOWED TIME INC TO REJECT A 200ASHARE TAKEOVER BID BY PARAMOUNT ITSELF SO THAT TIME COULD PURSUE A STRATEGIC ALLIANCE WITH WARNER COMMUNICATIONS INC BUT VICE CHANCELLOR JACOBS RULED THAT PARAMOUNT'S DEAL WITH VIACOM IS A SALE OF THE COMPANY RATHER THAN A STRATEGIC ALLIANCE BECAUSE CONTROL IS PASSING TO VIACOM CHAIRMAN SUMNER REDSTONE THAT SALE PROCESS THE JUDGE SAID OBLIGES THE DIRECTORS TO FULFILL DUTIES MANDATED BY THE DELAWARE COURTS IN THE 1985 TAKEOVER BATTLE FOR REVLON INC TO GET THE BEST DEAL FOR SHAREHOLDERS THE RULING WAS A MAJOR SETBACK TO PARAMOUNT CHAIRMAN MARTIN DAVIS WHOSE SKILLFUL ADVOCACY THE JUDGE SAID PERSUADED THE BOARD THAT NO EXPLORATION OF QVC'S FINANCING WAS REQUIRED MR DAVIS HAS FAVORED VIACOM OVER QVC INDUSTRY OBSERVERS BELIEVE PARTLY BECAUSE THERE IS BAD BLOOD BETWEEN HIM AND MR DILLER THE COURT'S DECISION SENT THE PRICE OF PARAMOUNT SHARES SOARING BY 3875 A SHARE TO 80125 WEDNESDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE VIACOM CLASS B SHARES JUMPED 275 A SHARE TO 4775 ON THE AMERICAN STOCK EXCHANGE AS TRADERS SAW REDUCED CHANCES THAT VIACOM WILL STRAIN ITS BALANCE SHEET WITH A PARAMOUNT ACQUISITION QVC'S STOCK FELL 1125 A SHARE TO 4775 ON THE NASDAQ STOCK MARKET AS ITS CHANCES OF WINNING THE BIDDING WAR GREW IN A TERSE STATEMENT PARAMOUNT CALLED THE DECISION WRONG ON BOTH THE FACTS AND THE LAW AND VOWED TO APPEAL IT IMMEDIATELY TO THE DELAWARE SUPREME COURT VIACOM LIKEWISE VOWED TO APPEAL THE JUDGE'S DECISION ALSO LEFT PARAMOUNT'S ADVISERS INVESTMENT BANKING FIRM LAZARD FRERES & CO AND LAW FIRM SIMPSON THACHER & BARTLETT OPEN TO CRITICISM BOTH FIRMS DECLINED TO RESPOND TO THE OPINION FROM HIS MALIBU CALIF HOME YESTERDAY MR DILLER SAID HE WASN'T SURPRISED BY THE DECISION I FELT OVERWHELMINGLY THAT WE WERE ON THE RIGHT SIDE OF THIS ISSUE HE SAID WE HAD MADE SO MANY ATTEMPTS EIGHT SEPARATE ATTEMPTS TO GET PARAMOUNT TO DEAL WITH US WE WERE PUSHED AWAY EACH TIME MR DILLER SAID THAT HE IS PREPARED TO MEET WITH PARAMOUNT SHOULD THE COMPANY OPEN THE DOOR NOW I'LL GO ANYWHERE TO PLEAD THE CASE HE SAID ADDING THAT HE REMAINS CONCERNED ABOUT WHETHER WE WILL GET A FAIR HEARING GIVEN THEIR ALREADY CLEARLY STATED BIAS CHARLES YABLON A CORPORATE LAW PROFESSOR AT YESHIVA UNIVERSITY'S BENJAMIN CARDOZO SCHOOL OF LAW SAID THE DECISION LIMITS THE SCOPE OF THE TIMEWARNER CASE AND EXPANDS THE DEFINITION OF WHAT KINDS OF SALES TRIGGER THE ENHANCED DUTIES UNDER THE REVLON CASE IT REINTERPRETS THE SCOPE OF REVLON AND TIME WARNER MR YABLON SAID NOW IT ISN'T ENOUGH FOR DIRECTORS TO APPROVE A FRIENDLY DEAL BASED SIMPLY ON THEIR BUSINESS JUDGMENT THAT IT IS A STRATEGIC MERGER THAT DELIVERS MORE VALUE IN THE LONG TERM THAT JUDGMENT MUST BE BASED ON ADEQUATE AND IN MANY CASES QUANTITATIVE INFORMATION HE ADDED HE ADDED THE BOARD DID NOT EVEN ASK QVC ON NOV 15 AS IT HAD IN SEPTEMBER TO PRODUCE EVIDENCE OF ITS FINANCING BUT MEETING WITH QVC WAS THE LAST THING MANAGEMENT WANTED TO DO AND BY SKILLFUL ADVOCACY MANAGEMENT PERSUADED THE BOARD THAT NO EXPLORATION WAS REQUIRED AT ONE POINT IN THE MEETING THE JUDGE NOTED LAZARD INVESTMENT BANKERS PUT VALUATIONS ON EACH BID THAT WERE CALCULATED INCORRECTLY AND LATER CHANGED VICE CHANCELLOR JACOBS ALSO CRITICIZED PARAMOUNT'S DIRECTORS AND ADVISERS FOR NEGOTIATING A LOCKUP AGREEMENT GIVING VIACOM THE RIGHT TO BUY 237 MILLION PARAMOUNT SHARES AT THE 6914ASHARE PRICE OF THE ORIGINAL PARAMOUNTVIACOM DEAL ANNOUNCED SEPT 12 IF THE COMPANY IS SOLD TO A HIGHER BIDDER THE DIRECTORS WERE NOT ADEQUATELY INFORMED AS TO WHETHER THE STOCK OPTION WOULD PROMOTE THE SHAREHOLDERS' INTEREST IN OBTAINING THE BEST AVAILABLE TRANSACTION HE SAID THE BOARD COULD NOT HAVE REASONABLY CONCLUDED THAT THE STOCK OPTION WAS CALCULATED TO ENSURE THAT THE SHAREHOLDERS WOULD OBTAIN THE BEST TRANSACTION AVAILABLE HE CALLED THE AMOUNT AND STRUCTURE OF THE LOCKUPS UNPRECEDENTED AND NOTED THAT BY ALLOWING VIACOM TO ACQUIRE THE SHARES WITH A NOTE PAYABLE TO PARAMOUNT THE BOARD WAS EFFECTIVELY SADDLING THE COMPANY WITH EXTRA DEBT OF 16 BILLION HURTING THE ABILITY OF ANY RIVAL TO FINANCE ANOTHER BID UNDER QVC'S CURRENT OFFER THE LOCKUP WOULD HAVE COST ABOUT 428 MILLION BUT THE JUDGE UPHELD A SMALLER 100 MILLION BREAKUP FEE GRANTED TO VIACOM AS REASONABLE BECAUSE IT REPRESENTED ONLY 12 OF THE PRICE OF THE ENTIRE DEAL A CORPORATE LAWYER INVOLVED IN THE TIME WARNER CASE WHO READ WEDNESDAY'S OPINION OBSERVED THAT VICE CHANCELLOR JACOBS JUST DIDN'T BELIEVE THE PARAMOUNT BOARD HAD PAID ENOUGH ATTENTION TO THE WHOLE THING THEY DIDN'T FULLY EVALUATE THINGS THEY WERE UNDULY INFLUENCED BY MR DAVIS YET CARDOZO'S MR YABLON AND COLUMBIA LAW SCHOOL PROFESSOR JOHN COFFEE BOTH SAID THEY CONSIDER THE JUDGE'S DECISION VULNERABLE TO REVERSAL ON APPEAL MR COFFEE NOTED THAT THE DELAWARE SUPREME COURT SAID IN THE TIME WARNER CASE THAT A BOARD'S DUTIES AS STIPULATED IN THE REVLON CASE AREN'T NECESSARILY TRIGGERED BY A SIMPLE CHANGE IN CONTROL BUT RATHER BY A PROPOSED LIQUIDATION OR SOME STEP BY A TARGET COMPANY THAT ACTIVELY INITIATED A BIDDING PROCESS THE JUDGE HE SAID HAS COME UP WITH A BROADER DEFINITION OF WHAT CONSTITUTES A SALE ON THE OTHER HAND MR COFFEE SAID THE DECISION WOULD BE HARD TO REVERSE BECAUSE IT WAS SO CLOSELY FACTBASED LAWYERS FOR THE CONTESTANTS ARE TO MEET THIS MORNING IN DELAWARE SUPREME COURT TO LAY OUT A SCHEDULE FOR THE APPEAL BY PARAMOUNT AND VIACOM WITH ORAL ARGUMENTS TENTATIVELY SET TO BE HEARD ON DEC 9 BOTH SIDES ARE EXPECTED TO PUT THEIR BIDS FOR PARAMOUNT ON HOLD DURING THE APPEAL PROCESS BUT IT ISN'T CLEAR YET WHAT WILL HAPPEN TO A FOURDAY TIMING ADVANTAGE CURRENTLY HELD BY VIACOM THAT ADVANTAGE COULD WELL EVAPORATE IF VIACOM RAISES ITS BID OR IT COULD BE PRESERVED IF THE DELAWARE SUPREME COURT REVERSES THE CHANCERY COURT DECISION THE DECISION APPEARED TO OPEN UP NEW SPLITS ON PARAMOUNT'S BOARD BETWEEN MR DAVIS AND DIRECTORS SUCH AS LESTER POLLACK AND MARCUS SCHLOSS WHO ARE SAID TO HAVE QUESTIONED HIS RIGID ADHERENCE TO THE VIACOM DEAL IT ALSO APPEARED TO OPEN FISSURES IN THE PARAMOUNT ADVISORY TEAM WITH SOME QUESTIONING WHETHER THE FATEFUL NOV 15 BOARD MEETING WAS NECESSARY SOME NOTED THAT THE BOARD HAD RELIED ON A LEGAL OPINION BY SIMPSON THACHER & BARTLETT THAT THE PARAMOUNTVIACOM MERGER AGREEMENT BARRED ANY TALKS WITH QVC A DECISION THAT CAME IN FOR SCATHING CRITICISM FROM THE JUDGE THE PROSPECT OF A HOMESTRETCH TACTICAL DUEL BETWEEN QVC AND VIACOM COULD ALSO BRING TO LIGHT SOME CHANGES IN QVC'S ADVISORY LINEUP WHERE 1980S MERGER STAR BRUCE WASSERSTEIN IS SAID TO BE PLAYING AN INCREASINGLY PROMINENT ROLE IN ADVISING MR DILLER MR DILLER HAS BEEN ADVISED BY HERBERT ALLEN JR OF ALLEN & CO AN INVESTMENT BANKER SPECIALIZING IN NEGOTIATED ENTERTAINMENT DEALS AND MARTIN LIPTON WHOSE LAW FIRM WACHTELL LIPTON ROSEN & KATZ SPECIALIZED IN TAKEOVER DEFENSE IN THE 1980S MR WASSERSTEIN WHO ADVISED BELLSOUTH CORP IN MAKING A 15 BILLION INVESTMENT IN QVC IS AN EXPERT IN THE TACTICS OF CONTESTED BIDS THE RULING LEFT OPEN THE QUESTION OF WHETHER THE PARAMOUNT BOARD WOULD BE ALLOWED TO CONTINUE MANAGING THE BIDDING OR WHETHER THAT WOULD BE SUPERVISED BY A SPECIAL COMMITTEE OR THE COURT ITSELF THE HUGE BATTLE FOR PARAMOUNT HAS COME TO SYMBOLIZE THE ALLURE OF ENTERTAINMENT AND INFORMATION ASSETS AT THE DAWN OF THE INTERACTIVE AGE CONTENT OR SOFTWARE THAT CAN BE DELIVERED OVER ELECTRONIC SUPERHIGHWAYS IS NOW AMONG THE BIGGEST PLAYS IN MEDIA AND COMMUNICATIONS AND PARAMOUNT THE LAST READILY AVAILABLE ENTERTAINMENT EMPIRE HAS BECOME THE PRIZED OBJECT OF QVC'S 51YEAROLD CHAIRMAN MR DILLER WHO IS SEEKING TO BECOME THE MASTER OF HIS OWN FATE AND VIACOM'S MR REDSTONE WHO IS PURSUING PERHAPS HIS CAREERCAPPING DEAL IN ADDITION TO ITS MOVIE STUDIO PARAMOUNT ALSO IS THE WORLD'S LARGEST PUBLISHER WITH SIMON & SCHUSTER AND THE PROPOSED PURCHASE OF MACMILLAN AND IT OWNS THE NEW YORK KNICKERBOCKERS AND RANGERS SPORTS FRANCHISES NEW YORK'S MADISON SQUARE GARDEN TELEVISION STATIONS AND THEME PARKS THE CONTEST FOR THE COMPANY RANKS AS ONE OF THE MOST REMARKABLE IN CORPORATE HISTORY BOTH FOR THE NUMBER OF BIGNAME PERSONALITIES INVOLVED AND FOR THE EMERGENCE OF ALLIANCES AS TAKEOVER VEHICLES IN ADDITION TO MESSRS DILLER AND REDSTONE THE OTHER CENTRAL FIGURE IS PARAMOUNT'S MR DAVIS WHO SUCCESSFULLY REDUCED THE OLD GULF & WESTERN CORP CONGLOMERATE INTO THE SHARPLY FOCUSED PARAMOUNT IN THE HEAT OF BATTLE BOTH QVC AND VIACOM PULLED TOGETHER ALLIANCES WHOSE MEMBERS SAW THE CONTEST AS ONE OF A DWINDLING NUMBER OF OPPORTUNITIES TO GET IN ON THE EMERGING MULTIMEDIA WORLD QVC LINED UP BELLSOUTH COX ENTERPRISES INC THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC AND LONGTIME BACKER COMCAST CORP VIACOM MEANWHILE LURED NYNEX CORP AND BLOCKBUSTER ENTERTAINMENT THE DEFEAT REPRESENTS AN ESPECIALLY BITTER OUTCOME FOR PARAMOUNT'S MR DAVIS WHO NOW TWICE IN FOUR YEARS HAS LOST IN COURT ON BOTH SIDES OF A HOSTILE TAKEOVER THE DELAWARE COURT REBUFFED HIM IN 1989 WHEN HE TRIED TO ABORT THE FRIENDLY MERGER OF TIME INC AND WARNER COMMUNICATIONS INC WITH A HIGHER BUT HOSTILE 200ASHARE CASH OFFER THE COURT RULED THEN THAT DIRECTORS HAD EXERCISED THEIR BEST BUSINESS JUDGMENT IN VIEWING THE TIME WARNER COMBINATION AS A STRATEGIC MERGER RATHER THAN AN OUTRIGHT SALE THAT WOULD LEAVE THE COMPANY IN SHAREHOLDERS' HANDS AND DELIVER THEM HIGHER LONGTERM VALUE THIS TIME AROUND MR DAVIS ARGUED THAT PARAMOUNT AND VIACOM'S PROPOSED UNION LIKE THE TIME WARNER DEAL HE HAD ATTACKED WAS A STRATEGIC COUPLING BUT THE COURT REJECTED THE POSITION PARAMOUNT COMMUNICATIONS INC DIRECTOR IRWIN SCHLOSS' NAME WAS MISSTATED IN AN ARTICLE FRIDAY AS MARCUS SCHLOSS IRWIN SCHLOSS IS A SENIOR ADVISER TO MARCUS SCHLOSS & CO A SECURITIES BROKER 9311260140 931126 SMALL STOCK FOCUS TECHNOLOGY ISSUES LEAD MARKET HIGHER IN SUBDUED PRETHANKSGIVING TRADING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BOND PRICES SERVED UP STABILITY AND SMALLSTOCK INVESTORS INDULGED IN A BUYING FEAST WEDNESDAY ON SUBDUED PRETHANKSGIVING VOLUME TRADERS SAID IT DIDN'T TAKE MUCH TO DRIVE PRICES HIGHER WITH TRADING SO THIN BUT THEY DID NOTICE RELATIVELY GOOD DEMAND FOR TECHNOLOGY ISSUES NASDAQ NATIONAL MARKET VOLUME SLOWED TO 205032900 SHARES FROM 236692900 SHARES TUESDAY TOTAL VOLUME FELL TO 240057000 SHARES FROM 279546100 SHARES THESE STOCKS HAD BEEN SO WASHED OUT AND WE SAW A CONTINUATION OF TUESDAY SAID TOM CONNELL HEAD OF NASDAQ TRADING AT GRUNTAL & CO SMALLER STOCKS ON TUESDAY BROKE A SIXDAY STRING OF LOSSES THE RUSSELL 2000 INDEX GAINED 170 POINTS OR 069 TO END AT 24982 ON WEDNESDAY THE BAROMETER MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR MARKETS THE NASDAQ COMPOSITE INDEX ADVANCED 636 POINTS OR 085 AND FINISHED AT 75318 GAINING ISSUES OUTPERFORMED NASDAQ LOSERS 1656 TO 1205 THE TREASURY'S 30YEAR BOND EDGED MARGINALLY HIGHER SENDING ITS YIELD SLIGHTLY LOWER TO 630 IN A SHORTENED SESSION RICKY HARRINGTON A SENIOR VICE PRESIDENT AND TECHNICAL ANALYST AT INTERSTATE/JOHNSON LANE SAID SMALLCAP STOCKS WILL LIKELY CLIMB HIGHER AGAIN TODAY BUT HE SAID THE POSSIBILITY OF MORE SELLING IN FOREIGN MARKETS COULD CAUSE SOME RIPPLES IN EQUITY PRICES TOKYO STOCKS FELL WEDNESDAY AFTER A SHARP DIVE MONDAY THE MARKET WAS CLOSED TUESDAY FOR A HOLIDAY SMALLER STOCKS COULD BEGIN TO FALL AGAIN BY NEXT WEEK MR HARRINGTON ADDED WE HAVE SEEN A LOT OF DAMAGE IN THE SECTOR HE SAID I THINK IT STILL NEEDS TO STABILIZE A LITTLE MORE AND WE COULD RETEST THOSE LOWS HIT RECENTLY BY YEAR END HE SAID PRICES SHOULD BE FLAT TO SLIGHTLY HIGHER TECHNOLOGY STOCKS JUMPED WITH SEMICONDUCTOR ISSUES LEADING THE WAY DATA I/O REDMOND WASH JUMPED 1/2 TO 2 3/4 LATTICE SEMICONDUCTOR HILLSBORO ORE ROSE 1/2 TO 13 7/8 AND KLA INSTRUMENTS SAN JOSE CALIF CLIMBED 3/4 TO 22 1/4 MORGAN STANLEY ISSUED AN INITIAL BUY RECOMMENDATION ON KLA SUPERMAC TECHNOLOGY SUNNYVALE CALIF SLID 3 TO 12 3/4 PRUDENTIAL SECURITIES LOWERED ITS INVESTMENT RATING ON THE DESKTOP COLOR GRAPHICS SYSTEMS SUPPLIER TO HOLD FROM BUY MINNTECH A MINNEAPOLIS MEDICAL SUPPLIES FIRM GAINED 1 1/2 TO 10 3/4 PRUDENTIAL SECURITIES ANALYST CHARLES OLSZIEWSKI RAISED HIS RATING TO BUY FROM HOLD CITING SIGNS THAT THE FOOD AND DRUG ADMINISTRATION MIGHT SOON REVIEW APPLICATIONS FOR SOME OF THE COMPANY'S PRODUCTS A THIRDQUARTER LOSS OF 35 CENTS A SHARE SENT SPORTSTOWN'S STOCK PRICE TUMBLING 7/8 TO 5 ANALYSTS HAD FORECAST THAT THE NORCROSS GA SPORTING GOODS RETAILER WOULD POST A LOSS OF 14 CENTS A SHARE SPORTSTOWN HAD A PROFIT OF ONE CENT A SHARE IN THE YEAREARLIER PERIOD OPTICAL RADIATION DROPPED 1 TO 13 1/4 THE AZUSA CALIF CONCERN SAID THE FDA HAS INITIATED MOVES TO IMPOUND ALL OF ITS INVENTORY OF ONEPIECE INTRAOCULAR LENSES ALTHOUGH NO RECALL HAS BEEN ORDERED THE COMPANY SAID THE AGENCY'S ACTION DOESN'T MEAN THE LENSES ARE UNSAFE STOKELY USA INC ROSE 1 TO 9 1/8 ITS VICE CHAIRMAN SAID HIGHER VEGETABLE PRICES ARE EXPECTED TO BOOST FISCAL 1994 RESULTS MERRYGOROUND ENTERPRISES SLIPPED 1 1/8 TO 6 1/2 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE JOPPA MD RETAILER SAID IT EXPECTS A MODEST OPERATING LOSS FOR THE THIRD QUARTER BEFORE TAKING A SPECIAL NONCASH CHARGE ESTIMATED AT ABOUT 28 MILLION TO 32 MILLION THE COMPANY ALSO SAID IT PLANS TO CLOSE ABOUT 30 UNDERPERFORMING STORES AS LEASES EXPIRE OVER TWO YEARS MUSICLAND STORES ALSO TRADED ON THE BIG BOARD WAS UP 1 3/4 TO 21 3/4 PAINEWEBBER ADDED THE COMPANY TO ITS FOCUS LIST SAYING THE MINNEAPOLISBASED SPECIALTY RETAILER OFFERS LONGTERM POTENTIAL FOR INVESTORS SEEKING AGGRESSIVE GROWTH ALSO ON THE BIG BOARD MORGAN KEEGAN ADDED 7/8 TO 13 THE MEMPHIS TENN BROKERAGE FIRM SAID LATE TUESDAY THAT ITS BOARD HAD AUTHORIZED THE BUYBACK OF AS MANY AS ONE MILLION COMMON SHARES 9311260138 931126 TECHNOLOGY SUPERCOLLIDER'S POSTMORTEM COSTS MAY MOUNT BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA IT HAS BEEN A ROTTEN AUTUMN FOR AMERICAN HIGHENERGY PHYSICISTS FIRST CONGRESS CANCELED THEIR PET PROJECT THE 11 BILLION SUPERCONDUCTING SUPERCOLLIDER AND NOW THEY MAY HAVE TO START PAYING ADMISSION AT EUROPE'S BIG HIGHENERGY LAB HERE THAT'S THE SOBERING MESSAGE BEING TELEGRAPHED TO US PHYSICISTS FROM ADMINISTRATORS HERE AT CERN THE FRENCH ACRONYM BY WHICH THE EUROPEAN LABORATORY FOR PARTICLE PHYSICS IS WIDELY KNOWN FOR DECADES EUROPEAN AND AMERICAN PHYSICISTS HAVE HAD A FRIENDLY ARRANGEMENT BY WHICH EACH COULD VISIT AND WORK FREE AT THE OTHERS'S PARTICLE ACCELERATORS NOW WITH THE SUPERCOLLIDER DEAD AND NO COMPARABLE US LAB IN SIGHT TO HOLD UP THE AMERICAN END OF THE SWAP THE EUROPEANS WANT CASH INSTEAD PERHAPS TENS OF MILLIONS OF DOLLARS A YEAR IF THERE'S A SIGNIFICANT NUMBER OF AMERICANS PLANNING TO USE CERN IT WILL REQUIRE A SUBSTANTIAL CONTRIBUTION OF SOME SORT FROM WASHINGTON SAYS PROF CHRISTOPHER LLEWELLYN SMITH AN OXFORD UNIVERSITY PHYSICIST RECENTLY NAMED CERN'S NEW DIRECTOR GENERAL HE ADDS EUROPEAN GOVERNMENTS WILL CERTAINLY DEMAND IT SUCH A STERN MESSAGE MAY COME AS A SURPRISE TO SOME IN WASHINGTON CONGRESS KILLED THE SUPERCOLLIDER LAST MONTH AS OVER BUDGET AND OVERAMBITIOUS AFTER ALREADY DUMPING 19 BILLION INTO DIGGING A 10MILE TUNNEL FOR IT IN WAXAHACHIE TEXAS AT THE TIME THE PROJECT'S BRUISED SUPPORTERS CONSOLED THEMSELVES WITH THE THOUGHT THAT THEY AND THEIR EXPERIMENTS WOULD ALWAYS BE WELCOME AT CERN BUT IT TURNS OUT THAT IN KILLING THE SUPERCOLLIDER WASHINGTON ALSO LOST ITS BARGAINING POWER WITH THE EUROPEANS RATHER THAN WALTZING INTO CERN WITH A VOLUNTARY CONTRIBUTION ON ITS OWN TERMS AS SOME IN CONGRESS HAVE SUGGESTED THE US MAY INSTEAD FIND ITSELF GETTING A BILL IN THE MAIL THE DIFFERENCE ISN'T ENTIRELY A MATTER OF US PRIDE THOUGH FOR SUCH A POLITICALLY CHARGED ISSUE AS PARTICLE ACCELERATORS THAT MAY BE DIFFERENCE ENOUGH PROF LLEWELLYN SMITH SAYS EUROPEAN GOVERNMENTS' TERMS FOR US PARTICIPATION IN CERN MAY INCLUDE GIVING IT A STATUS AS ASSOCIATE MEMBER RATHER THAN FULL MEMBER WITH THE RIGHTS TO GET A PIECE OF THE LUCRATIVE CONSTRUCTION AND SERVICE CONTRACTS THAT CERN PARCELS OUT EACH YEAR THE MOOD OF EUROPE'S RECESSIONBATTERED GOVERNMENTS ISN'T GENEROUS THESE DAYS NEARLY 500 US PHYSICISTS ARE REGISTERED TO USE CERN FREE MORE EVEN THAN THE NUMBER FROM BRITAIN A DUESPAYING CERN MEMBER YOU TRY TO EXPLAIN THAT TO MY UNITED KINGDOM SCIENCE MINISTER PROF LLEWELLYN SMITH SAYS POLITICS ASIDE GOOD SCIENCE IS WHAT CERN IS ALL ABOUT IT IS THE HIGHESTPOWER PARTICLE ACCELERATOR IN THE WORLD AND WITH THE SUPERCOLLIDER OUT OF THE PICTURE IT'S LIKELY TO RETAIN THAT TITLE FOR AT LEAST ANOTHER DECADE ITS DISCOVERY OF TWO OF THE MOSTSHADOWY SUBATOMIC CONSTITUENTS THE SOCALLED W AND Z BOSONS LED TO A NOBEL PRIZE IN 1984 SINCE THEN IT HAS BECOME A SCIENTIFIC FACTORY FOR STUDYING SUCH PARTICLES AND FOR TESTING THEORIES ABOUT HOW MATTER IS PUT TOGETHER AND HOW THE UNIVERSE BEGAN THOUGH ONETHIRD THE CIRCUMFERENCE OF THE PLANNED SUPERCOLLIDER CERN ALREADY RANKS AS ONE OF THE WORLD'S LARGEST ENGINEERING PROJECTS LIKE THE SUPERCOLLIDER CERN'S MAIN PROJECT IS A CIRCULAR TUNNEL IN THIS CASE ONE UNDER THE FRENCH AND SWISS COUNTRYSIDE NEAR GENEVA RUNNING THROUGH THE TUNNEL IS A RING OF HIGHPOWER ELECTROMAGNETS SO STRONG THAT WHEN OPERATING THEY CONSUME ABOUT AS MUCH ELECTRICITY AS THE ENTIRE CITY OF GENEVA THE ELECTROMAGNETS STEER SUBATOMIC PARTICLES AROUND THIS SUBTERRANEAN RACECOURSE 11200 TIMES A SECOND AT FOUR POINTS ALONG THE RING THE MAGNETS NUDGE THE PARTICLES SPECIFICALLY ELECTRONS AND POSITRONS INTO COLLIDING WITH EACH OTHER IN A FLASH OF SPARKS THAT ARE SPOTTED AND MEASURED BY BANKS OF COMPUTERIZED DETECTORS WHEN SELLING THE SUPERCOLLIDER TO CONGRESS AMERICAN PHYSICISTS ARGUED THAT CERN WASN'T POWERFUL ENOUGH TO GET TO THE BOTTOM OF SOME OF THE MOST PRESSING MYSTERIES OF PHYSICS BUT CERN'S ADMINISTRATORS ALWAYS DISPUTED THAT THE SUPERCOLLIDER WAS JUST TOO BIG AND TOO EXPENSIVE SAYS CERN DIRECTOR OF RESEARCH WALTER HOOGLAND FOR A FRACTION OF THE SUPERCOLLIDER'S COST 32 BILLION SWISS FRANCS 215 BILLION INCLUDING ALL THE ELECTRONIC TRIMMINGS CERN IS PLANNING TO UPGRADE ITS RACETRACK TO TACKLE THE SAME PROBLEMS THAT THE SUPERCOLLIDER WAS GUNNING FOR THE UPGRADE CALLED THE LARGE HADRON COLLIDER ENTAILS BEEFING UP CERN'S MAGNETS TO HAVE PROTONS COLLIDE AT THE HIGHEST ENERGIES EVER ATTEMPTED SPECIFICALLY WITH EACH OF TWO COLLIDING PROTON BEAMS WHIZZING AT ENERGIES OF ABOUT 7000 BILLION ELECTRON VOLTS THAT'S 140 TIMES MORE JUICE THAN CERN CURRENTLY DELIVERS SUCH UNIMAGINABLE ENERGIES CORRESPOND TO THE STATE OF THE UNIVERSE A TINY FRACTION OF A SECOND AFTER THE BIG BANG THAT IS THOUGHT TO HAVE STARTED IT ALL 15 BILLION YEARS AGO WITH THIS PEEPHOLE INTO THE PAST CERN'S SCIENTISTS HOPE TO SEE WHAT CONDITIONS WERE LIKE WHEN TWO OF THE FOUR FUNDAMENTAL FORCES OF THE UNIVERSE ELECTROMAGNETISM AND THE WEAK NUCLEAR FORCE THAT HELPS HOLD ATOMIC NUCLEI TOGETHER WERE ALIKE THAT WILL EITHER CONFIRM OR UPSET THE STANDARD THEORIES ABOUT HOW MATTER AND ENERGY WORK THE SUPERCOLLIDER HAD THE SAME GOAL BUT IT PLANNED TO DO IT AT EVEN HIGHER ENERGIES OF 20000 BILLION ELECTRON VOLTS FOR EACH PROTON BEAM CERN'S MR HOOGLAND SAYS SUCH HIGH EXPENSIVE ENERGIES AREN'T NEEDED INSTEAD CLEVER CONTROL OF THE BEAMS AND DETECTION EQUIPMENT IS SUPPOSED TO COMPENSATE FOR CERN'S LOWERENERGY COLLISIONS HE SAYS US PHYSICISTS POOHPOOHED THAT POSSIBILITY IN ORDER TO SELL CONGRESS ON THE SUPERCOLLIDER PROJECT NATURALLY AMERICAN PHYSICISTS DISPUTE THAT I DON'T THINK IT THE SUPERCOLLIDER WAS OVERSOLD SAYS STANLEY WOJCICKI A STANFORD UNIVERSITY PHYSICS PROFESSOR AND CHAIRMAN OF A GOVERNMENTAPPOINTED HIGHENERGY PHYSICS COMMITTEE HE CONCEDES THERE IS A 75 TO 80 PROBABILITY THAT MR HOOGLAND IS RIGHT AND CERN CAN HIT THE SCIENTIFIC TARGET WITH ITS SMALLER MACHINE BUT HE SAYS THE SUPERCOLLIDER WAS DESIGNED TO PROVIDE A NEAR100 PROBABILITY OF SUCCESS STILL PROF WOJCICKI SAYS IT'S REALLY SILLY TO ARGUE ABOUT THIS NOW WE'RE FACED WITH CERTAIN BOUNDARY CONDITIONS PHYSICSSPEAK FOR BEING UNABLE TO DO SOMETHING HIS PANEL IS STUDYING THE POSSIBLE TERMS FOR US PARTICIPATION IN CERN LIKE IT OR NOT HE SAYS CERN'S HADRON PROJECT IS THE ONLY GAME IN TOWN AT LEAST FOR THE NEXT 10 YEARS 9311260137 931126 SOME HARDY INVESTORS LIKE NORTH KOREA BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG ASIA'S STOCK MARKETS ARE RACY ENOUGH FOR MOST INVESTORS BUT A FEW ADVENTURERS ARE DANGLING THEIR TOES IN SOMETHING THAT WOULD STRIKE MOST PEOPLE AS DOWNRIGHT BIZARRE DEFAULTED NORTH KOREAN BANK DEBT SO WHAT IF NORTH KOREA HAS BECOME THE WEST'S PUBLIC ENEMY NO 1 IF NORTH KOREANS ARE TOLD BY THEIR GOVERNMENT TO EAT NO MORE THAN TWO MEALS A DAY AND IF THE COUNTRY'S XENOPHOBIC AUTHORITIES WON'T EVEN ANSWER THEIR CREDITORS' TELEXES I STRONGLY BELIEVE THAT NORTH KOREA'S FOREIGN DEBTS WILL ONE DAY BE WORTH SUBSTANTIALLY MORE THAN WHAT THEY SELL FOR TODAY SAYS MARC FABER A HONG KONGBASED MONEY MANAGER WHO HAS BEEN INVESTING IN ASIA'S EMERGING MARKETS FOR TWO DECADES HIS FIRM MARC FABER LTD WITH 100 MILLION UNDER MANAGEMENT HAS PUT ABOUT 15 MILLION INTO VARIOUS ISSUES OF DEBT ON WHICH PYONGYANG DEFAULTED DURING THE 1980S BROKERS SAY NORTH KOREAN DEBT TRADES EVERY NOW AND THEN FOR ABOUT 15 CENTS PER 1 OF FACE VALUE TWO MONTHS AGO WHEN MR FABER BOUGHT IT THE DEBT WAS TRADING AT 12 CENTS TO THE DOLLAR A FEW YEARS BACK THE PRICE WAS AS LOW AS TWO CENTS AMONG EMERGINGMARKET INVESTORS MR FABER IS FAMOUS FOR TOUTING INVESTMENTS IN PARIAH STATES AND IN COUNTRIES WHERE VISITORS ARE ADVISED TO WEAR FLAK JACKETS IN JUNE 1989 JUST AFTER CHINESE TROOPS MASSACRED STUDENTS IN BEIJING'S TIANANMEN SQUARE MR FABER WAS SNAPPING UP HONG KONGLISTED SHARES OF COMPANIES WITH OPERATIONS IN CHINA HE WAS BULLISH ON THE PHILIPPINES AS FERDINAND MARCOS'S REGIME CRUMBLED IN 1985 AND HE RECOMMENDED INVESTING IN BRAZIL WHEN ITS FIRST ATTEMPT AT ECONOMIC STABILIZATION COLLAPSED IN LATE 1990 MORE RECENTLY HE HAS PUT MONEY FOR SOME SPECULATIVE INVESTORS IN LOANS OF VIETNAM CUBA ZAMBIA ANGOLA CAMEROON AND NIGERIA HE SAYS HE HAS SOLD THE NIGERIAN DEBT AT A PROFIT BUT MR FABER ISN'T ALONE IN LOOKING AT ASIA'S LAST HARDLINE COMMUNIST STATE SINCE PUBLISHING A RECOMMENDATION OF NORTH KOREAN DEBT IN SEPTEMBER HIS FIRM HAS BEEN RECEIVING CALLS FROM CURIOUS INVESTORS BROKERS IN LONDON ALSO SAY THAT NORTH KOREAN DEBT HAS BECOME MORE POPULAR IN THE PAST SIX MONTHS AT LEAST ONE MERCHANT BANK IS TAKING A LOOK AT NORTH KOREA TOO LAST MONTH HONG KONG'S PEREGRINE GROUP SENT TWO SENIOR OFFICERS THERE AS TOURISTS FOR A FOURDAY VISIT THAT CAME SHORTLY AFTER A NORTH KOREAN OFFICIAL VISITED HONG KONG TO PROMOTE INVESTMENT IN A SPECIAL ECONOMIC ZONE ON THE COUNTRY'S BORDER WITH RUSSIA AND CHINA OF COURSE NORTH KOREA IS FAR FROM BEING ASIA'S NEXT HOT BET THE COUNTRY HAS BEEN A BIT OF A JOKE IN THE FINANCIAL WORLD SINCE IT DEFAULTED ON FOREIGN DEBT SAYS MICHAEL BREEN A NORTH KOREAWATCHER WITH MERIT CONSULTING IN SEOUL MOREOVER THE COLLAPSE OF NORTH KOREA'S TRADITIONAL TRADE WITH COMMUNIST COUNTRIES HAS DEVASTATED ITS ECONOMY INVESTORS WHO DO WANT TO VISIT HAVE TO SNEAK OVER THE BORDER AS TOURISTS VISITORS SAY OFFICIAL GUIDES HURTLE THEM THROUGH PYONGYANG'S EMPTY AVENUES IN 1973MODEL VOLVOS FOR WHICH SWEDEN'S GOVERNMENT IS STILL WAITING TO BE PAID ONCE IN NORTH KOREA OUTSIDERS ARE HARDPRESSED TO ASSESS THE ECONOMY I DON'T EVEN THINK THE GOVERNMENT ITSELF HAS RELIABLE FIGURES FOR ITS GROSS DOMESTIC PRODUCT SAYS PAUL PHEBY EXECUTIVE VICE PRESIDENT OF PEREGRINE'S SOUTH KOREAN SECURITIES AFFILIATE AND ONE OF THE EXECUTIVES WHO TRAVELED TO PYONGYANG ADDS ANOTHER EXECUTIVE WHO VISITED THE CITY THERE IS NOTHING IN NORTH KOREA YOU COULD DESCRIBE AS BUSINESSLIKE IT'S AS IF YOU GO INTO A BLACK HOLE AND FIND A WORLD WHICH IS RUN ACCORDING TO COMPLETELY DIFFERENT RULES BUT NONE OF THAT SEEMS TO MATTER MUCH TO THE PEOPLE BUYING THE DEBT NORTH KOREA OWES TO TWO SYNDICATES OF WESTERN BANKS AND TO FOREIGN GOVERNMENTS INCLUDING THOSE OF JAPAN SWEDEN AND FRANCE ALL TOLD NORTH KOREA OWES NEARLY 3 BILLION TO WESTERN LENDERS PYONGYANG PROBABLY WON'T EVER PAY THE WHOLE AMOUNT BACK ADMIT SOME OF THE CURRENT HOLDERS OF NORTH KOREAN DEBT RATHER THEY FIGURE THAT NORTH KOREA EVENTUALLY WILL START TO TRADE WITH THE WEST REQUIRING SOME FORM OF ARRANGEMENT WITH FOREIGN CREDITORS SAYS FRANK RIESS A MANAGING DIRECTOR OF HENRY ANSBACHER ASSET TRADING LTD IN LONDON MR FABER MAKES THE CASE FOR NORTH KOREA'S INTEGRATION INTO ASIAN TRADE SEEM OBVIOUS JAPANESE AND SOUTH KOREAN INDUSTRY COULD TAP NORTH KOREA'S CHEAP LABOR HE SAYS WHILE THE COUNTRY'S 22 MILLION CITIZENS REPRESENT A POTENTIAL MARKET FOR JAPANESE AND SOUTH KOREAN GOODS THE NORTH KOREANS ALSO COULD FIND THEMSELVES PROCESSING RUSSIA'S NATURALRESOURCE EXPORTS TO THE PACIFIC RIM THE THREAT OF A SECOND KOREAN WAR ONLY ENCOURAGES MR FABER AGGRESSION WOULD ACTUALLY ACCELERATE NORTH KOREA'S ECONOMIC INTEGRATION BECAUSE IT WOULD ENSURE THE IMMEDIATE DEMISE OF CURRENT DICTATOR KIM IL SUNG'S SYSTEM MR FABER WROTE IN SEPTEMBER NORTH KOREA'S ARSENAL WOULD BE DESTROYED BY SOUTH KOREAN JAPANESE AND AMERICAN FORCES ALMOST OVERNIGHT SHORT OF AN ACTUAL WAR NORTH KOREAN SABERRATTLING IS REALLY A PLAY TO GAIN ECONOMIC CONCESSIONS FROM POTENTIAL TRADING PARTNERS MR FABER SAYS NORTH KOREAN DEBT IS A PRICEY INVESTMENT USUALLY THE MINIMUM PURCHASE IS ABOUT 1 MILLION FACE VALUE BECAUSE OF THE BURDEN OF DOING A TRANSACTION SAYS PETER HOCK A DIRECTOR OF LAZARD BROTHERS & CO IN LONDON WHO HAS BROKERED TRADES IN THE PAPER EACH TRANSACTION IS A COMPLICATED LEGAL PROCEDURE SAYS MR HOCK AND CAN TAKE UP TO A MONTH TO COMPLETE NONETHELESS WE HAVE TRADED A FACE VALUE OF 60 MILLION MARKS 35 MILLION IN THE LAST NINE MONTHS SAYS MR RIESS THAT'S UP CONSIDERABLY FROM THE FEW TRADES HE SAW DONE IN THE PREVIOUS TWO YEARS 9311260136 931126 POLITICS & POLICY FIRST BROTHERINLAW TONY RODHAM HAS A JOB TO SPEAK EAT AND GOLF FOR THE DEMOCRATIC PARTY BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEED A FIRST FAMILY CONNECTION FOR YOUR CIVIC OR POLITICAL EVENT IF FIRST BROTHER ROGER CLINTON IS TOO TIED UP WITH VENTURES SUCH AS HIS MOVIE PROJECT PUMPKINHEAD II BLOOD WINGS THERE'S AN ALTERNATIVE TONY RODHAM IS HILLARY RODHAM CLINTON'S YOUNGER BROTHER HE ALSO IS A MIDLEVEL STAFFER AT THE DEMOCRATIC NATIONAL COMMITTEE HERE HE'S FRIENDLY HE ISN'T LIKELY TO GO FOR SOMEBODY'S THROAT AS ROGER CLINTON DID AT A PROBASKETBALL GAME AND HE HAS HOBBIES WHEN NANCY TREICHLER A DEMOCRATIC PARTY OFFICIAL IN OHIO NEEDED A MINOR CELEBRITY TO ATTRACT PEOPLE TO A LOCAL GOLF OUTING AND FUNDRAISER RECENTLY SHE CALLED THE DEMOCRATIC COMMITTEE AS SOON AS I MENTIONED GOLF THEY SAID WELL WHAT ABOUT TONY RODHAM' MS TREICHLER RECALLS AND SHE READILY AGREED HE'S AN AVID GOLFER SAYS MS TREICHLER AT HER FUNDRAISER SHE SAYS HE WON THE PRIZE FOR THE LONGEST DRIVE INDEED THE 39YEAROLD MR RODHAM'S MOTTO COULD BE HAVE GOLF CLUBS WILL TRAVEL HE IS ON THE PARTY PAYROLL AS A COORDINATOR FOR CONSTITUENCY OUTREACH HIS JOB IS TO GO AROUND THE COUNTRY MAKING SPEECHES ATTENDING PICNICS AND SOMETIMES PLAYING GOLF ON BEHALF OF HIS SISTER AND BROTHERINLAW ALTHOUGH THE PARTY WON'T GIVE A PRECISE FIGURE MR RODHAM'S SALARY FOR THESE LABORS IS MORE THAN 50000 A YEAR ACCORDING TO DISCLOSURE STATEMENTS AND DEMOCRATIC AIDES MR RODHAM GOES TO MANY PLACES THAT ARE HAPPY TO GET ALMOST ANYONE AND EVEN THERE SOMETIMES HE ISN'T SO MAJOR AN ENTICEMENT HE WAS THE FEATURED GUEST AT A CRAB FEAST THROWN BY DEMOCRATS IN OLYMPIA WASH THIS SUMMER BUT ACCORDING TO JAY PEARSON POLITICAL DIRECTOR OF THE WASHINGTON STATE DEMOCRATIC PARTY THE CRAB ACTUALLY WAS THE FEATURED ATTRACTION GIVEN THE CHECKERED HISTORY OF FIRST BROTHERS THOUGH A HARMLESS FIRST BROTHERINLAW CAN BE A WELCOME RELIEF WHEN THEY SURFACE SIBLINGS CAN MOSTLY DO DAMAGE SAYS FRED GREENSTEIN A PRESIDENTIAL SCHOLAR AT PRINCETON UNIVERSITY IT'S BEST WHEN THEY ARE SOLID NONENTITIES PRESIDENT JOHNSON KEPT HIS HARDDRINKING BROTHER SAM HOUSTON JOHNSON LIVING WITH HIM IN THE WHITE HOUSE TO HELP KEEP HIM OUT OF TROUBLE PRESIDENT NIXON'S BROTHER DONALD HAD QUESTIONABLE BUSINESS DEALINGS AND PRESIDENT CARTER'S BROTHER BILLY CREATED A SCANDAL BY LOBBYING FOR LIBYA AND WAS THE NAMESAKE FOR BILLY BEER ROGER CLINTON THE PRESIDENT'S YOUNGER HALFBROTHER AND A SOMETIME SINGER ONCE STARTED SCREAMING FOR SECURITY IN BLOOMINGDALE'S WHEN A PHOTOGRAPHER TRIED TO SNAP HIS PICTURE HE ADMITS THAT HIS SECRET SERVICE NAME IS HEADACHE MR RODHAM TAKES HIS LOWWATTAGE CELEBRITY IN STRIDE HE TELLS AUDIENCES CANDIDLY HILLARY WAS A TOUGH ACT TO FOLLOW IN SCHOOL HE ALSO JOKES THAT HE USUALLY ISN'T RECOGNIZED IN PARADES RATHER HE SAYS HE IS CONSIDERED THE DESIGNATED WAVER OF THE FAMOUS FAMILY MR RODHAM SAYS CATHERINE MOORE THE DNC'S SPOKESPERSON IS NOT MUCH FOR THE SPOTLIGHT HE'S NEVER BEEN A STARGRABBER HE DECLINED TO BE INTERVIEWED FOR THIS ARTICLE THIS ISN'T TO SAY HE DOESN'T TRY TO IMPRESS PEOPLE WITH HIS CONNECTION TO THE WHITE HOUSE HE WOWED A GROUP OF 40 SMALLBUSINESS EXECUTIVES IN SEATTLE BY BEGINNING HIS ADDRESS TO THEM BY SAYING HE JUST GOT OFF THE PHONE WITH THE PRESIDENT THAT AFTERNOON TALKING ABOUT SOME ISSUES ACCORDING TO NED DANIELS CHAIRMAN OF THE SNOHOMISH COUNTY WASH DEMOCRATIC PARTY MR RODHAM DIDN'T SAY WHAT THOSE ISSUES WERE WHEREVER HE GOES MR RODHAM APPEARS TO BE GENERALLY WELLLIKED JOHN WINNEY A DEMOCRATIC PARTY OFFICIAL IN WASHINGTON STATE SAYS I ENJOYED THE DAYLIGHTS OUT OF HIM HE'S A VERY PERSONABLE GENTLEMAN IN OREGON MR RODHAM CHATTED AMIABLY ABOUT FISHING NECKTIES AND EVEN HIS WATCH WHICH HE SAID HE GOT AT CAMP DAVID IT'S THE ONLY PLACE YOU COULD GET IT RECALLS HARRY DEMAREST CHAIRMAN OF THE BENTON COUNTY ORE DEMOCRATIC PARTY IT WAS A COOL WATCH THE OREGON TRIP WAS ABOUT THE ONLY TIME HE CREATED A STIR HE GOT INVOLVED IN SERIOUS POLITICAL DEBATE TRYING TO WIN OVER LOCAL SUPPORTERS OF TEXAN ROSS PEROT ACCORDING TO PEOPLE THERE MR RODHAM LOST HIS TEMPER WHEN AN AUDIENCE MEMBER QUESTIONED MR CLINTON'S HONESTY YOUR PRESIDENT IS IN WASHINGTON NOT DALLAS MR RODHAM IS QUOTED AS RESPONDING MR PEROT HIMSELF SCORED MR RODHAM FOR THE OUTBURST ON LARRY KING LIVE OUTSIDE THE POLITICAL CHICKENDINNER CIRCUIT MOST PEOPLE DON'T EVEN KNOW THAT MR RODHAM ISN'T ANY LONGER THE MIAMIBASED PRIVATE DETECTIVE AND PROCESS SERVER HE WAS DURING THE CAMPAIGN THE ONLY TIME HE GOT MUCH ATTENTION WAS DURING THIS YEAR'S INAUGURATION WHEN HE AND HIS BROTHER HUGH A PUBLIC DEFENDER IN FLORIDA WERE EMBARRASSED BY DISCLOSURE THAT A REPRESENTATIVE OF THEIRS WAS SEEKING CORPORATE CONTRIBUTIONS TO FINANCE A PARTY FOR THE RODHAM FAMILY AND FRIENDS SOME GOSSIP COLUMNS ALSO HAVE MENTIONED HIS RECENT ENGAGEMENT TO NICOLE BOXER THE 26YEAROLD DAUGHTER OF DEMOCRATIC SEN BARBARA BOXER OF CALIFORNIA MOST OF WHAT MR RODHAM DOES NOW ISN'T HEAVY LIFTING ON HIS TRIP TO WASHINGTON STATE THIS SUMMER HE SPENT PART OF A DAY SHAKING HANDS AT THE DEMOCRATIC BOOTH IN THE EVERGREEN STATE FAIR IN MILWAUKEE HE SHARED THE LIMELIGHT WITH BARBECUED BRATWURST AT A LOCAL POLITICIAN'S PICNIC HE ALSO CRUISED ON A SMALL YACHT WITH A GROUP OF YOUNG DEMOCRATS FROM MILWAUKEE IT WAS A RECRUITING THING TO GET MORE COLLEGE DEMOCRATS INVOLVED SAYS MARLYS MATUSZAK CHAIRWOMAN OF WISCONSIN'S DEMOCRATIC PARTY THEY LOVED IT WHY MR RODHAM WE USE ANYBODY FROM THE DNC THAT WE COULD GET SHE EXPLAINS THESE DAYS LIKE HIS SISTER MR RODMAN IS MAKING AND ARRANGING FOR OTHERS TO MAKE SPEECHES TO PROMOTE MR CLINTON'S HEALTHCARE PLAN BUT EVEN NOW THE WHITE HOUSE'S CLEARINGHOUSE FOR DEMOCRATIC ACTIVITIES RELATED TO THE HEALTHCARE PLAN IS UNINFORMED ABOUT HIS ACTIVITIES YET HIS TRAVELS HAVE IN FACT ALREADY CONTRIBUTED TO THE PRESIDENT'S HEALTHCARE CAMPAIGN MR RODHAM IS CREDITED WITH BRINGING TO MR CLINTON'S ATTENTION A 13YEAROLD GIRL WHOSE STORY OF PERSONAL BRAVERY THE PRESIDENT HAS USED TO ARGUE THAT NOTHING IS IMPOSSIBLE EVEN HEALTHCARE REFORM THE GIRL BRIANNE SCHWANTES HAS BONES SO BRITTLE THAT THEY CAN BREAK EASILY YET SHE TRAVELED WITH A GROUP OF YOUNG DEMOCRATS WHO HELPED CLEAN UP THE FLOOD DAMAGE THIS SUMMER IN IOWA THANKS TO MR RODHAM SHE GOT TO MEET THE PRESIDENT WHO INTRODUCED HER TO THE POPE AND WHERE DID BRIANNE AND MR RODHAM MEET AT THAT BRATWUST BARBECUE BACK IN MILWAUKEE 9311260135 931126 ECONOMY ANOTHER GAIN IN DURABLEGOODS ORDERS SIGNALS GROWTH IN MANUFACTURING SECTOR BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GROWTH IN THE MANUFACTURING SECTOR IS STILL SLOW BUT RECENT IMPROVEMENTS ARE WIDESPREAD AND ENCOURAGING ECONOMISTS SAY IN ESSENCE THE FACTORS THAT DEPRESSED THE ECONOMY IN THE FIRST HALF OF 1993 PARTICULARLY THE INVENTORY CYCLE HAVE NOW PLAYED THEMSELVES OUT SAID NATIONAL ASSOCIATION OF MANUFACTURERS ECONOMIST GORDON RICHARDS THE LATEST DATA UNDERSCORE THIS TREND THE COMMERCE DEPARTMENT SAID ORDERS FOR BIGTICKET FACTORY ITEMS ROSE 2 LAST MONTH TO 1358 BILLION THAT WAS THE THIRD CONSECUTIVE MONTHLY GAIN AND IT PUSHED ORDERS TO THEIR HIGHEST LEVEL ON RECORD ORDERS ROSE A REVISED 11 IN SEPTEMBER FOLLOWING A 25 INCREASE IN AUGUST THE DEPARTMENT ORIGINALLY REPORTED THOSE INCREASES WERE 07 AND 26 RESPECTIVELY GAINS IN PRODUCTION AND A SLIGHT INCREASE IN MANUFACTURING EMPLOYMENT LAST MONTH HAVE MADE ANALYSTS MORE UPBEAT ABOUT THE HEALTH OF US FACTORIES BUT DESPITE THE GOOD NEWS IN THE MANUFACTURING SECTOR AND OTHER AREAS OF THE ECONOMY AMERICANS REPORT THAT THEY ARE STILL IN A BAD MOOD THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX FELL IN NOVEMBER TO 812 FROM 827 IN OCTOBER ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT THE BIGGEST GAIN IN DURABLEGOODS ORDERS LAST MONTH WAS THE 55 RISE IN ORDERS FOR TRANSPORTATION EQUIPMENT BUT EVEN OUTSIDE THAT OFTENVOLATILE SECTOR GAINS WERE WIDESPREAD EIGHT OUT OF 10 MAJOR INDUSTRIAL SECTORS INCLUDING INDUSTRIAL MACHINERY PRIMARY METALS AND ELECTRONIC EQUIPMENT ADDED ORDERS IN OCTOBER BRUCE STEINBERG SENIOR ECONOMIST FOR MERRILL LYNCH & CO SAID THE DATA POINT TO OVERALL INDUSTRIALSECTOR IMPROVEMENT FOR THE NEXT THREE TO SIX MONTHS MOREOVER ORDERS FOR NONDEFENSE CAPITAL GOODS ONE OF THE ECONOMY'S LEADING SECTORS ROSE 44 MR STEINBERG SAID UNFILLED ORDERS DECLINED 04 IN OCTOBER AND ARE AT THEIR LOWEST LEVEL SINCE JUNE 1988 BUT THE WEAKNESS CENTERED IN DEFENSE AND CIVILIAN AIRCRAFT EXCLUDING THOSE CATEGORIES THE BACKLOG OF ORDERS INCREASED 14 THE FIFTH CONSECUTIVE RISE PRISCILLA TRUMBULL SENIOR INDUSTRIAL ECONOMIST FOR THE WEFA GROUP SAID THAT'S A VERY NICE TURN SINCE THE THE DEFENSE SECTOR WILL HAVE A MAJOR NEGATIVE IMPACT FOR MANY YEARS TO COME ANALYSTS ARE STILL WARY ABOUT THE JOBS OUTLOOK IN THE MANUFACTURING SECTOR MS TRUMBULL SAID SMALL JOB LOSSES OR NO GROWTH SHOULD BE EXPECTED FOR AT LEAST THE NEXT SIX MONTHS HOWEVER SHE ADDED CONSISTENT RISES IN DURABLEGOODS ORDERS WILL MOST LIKELY FORCE FACTORIES TO HIRE MORE WORKERS DESPITE THEIR OBVIOUS HESITANCY STEADY GAINS ARE CRITICAL TO AN EVENTUAL TURNAROUND IN THE MANUFACTURING JOB PICTURE SHE SAID SEPARATELY THE LABOR DEPARTMENT ANNOUNCED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE 1000 LAST WEEK TO 339000 THE FOURWEEK MOVING AVERAGE FOR JOBLESS CLAIMS CONSIDERED A BETTER MARKER OF LABORMARKET CONDITIONS DECLINED TO 343250 THE WEEK ENDED NOV 20 FROM 345500 THE WEEK BEFORE MR STEINBERG SAID THE COMING HOLIDAYS PROBABLY WILL CAUSE VOLATILE CLAIMS DATA FOR THE REMAINDER OF THE YEAR ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9311260134 931126 WHAT'S NEWS WORLDWIDE GAZA ERUPTED IN ANGRY PROTESTS OVER THE KILLING OF A MUSLIM MILITANT PALESTINIANS IN THE OCCUPIED GAZA STRIP STONED ISRAELI SOLDIERS FROM BEHIND BURNING BARRICADES IN RIOTS OVER THE ARMY'S KILLING ON WEDNESDAY OF A MUSLIM MILITANT COMMANDER WHO TOPPED ISRAEL'S MOSTWANTED LIST ARAB REPORTS SAID 34 PALESTINIANS WERE INJURED THE PROTESTS WERE THE MOST WIDESPREAD AND VIOLENT SINCE THE SEPT 13 SIGNING OF THE ISRAELPLO PEACE PACT IN EGYPT MEANWHILE ISRAELI AND PLO NEGOTIATORS MET TO HAMMER OUT DETAILS OF THE ACCORD THE BRADY BILL WON FINAL CONGRESSIONAL APPROVAL FOLLOWING A SIXYEAR FIGHT AFTER REPUBLICAN RESISTANCE COLLAPSED THE SENATE PASSED THE GUNCONTROL BILL AND SENT IT TO CLINTON WHO IS EXPECTED TO SIGN THE BILL NEXT WEEK THE MEASURE MANDATES A BACKGROUND CHECK ON HANDGUN BUYERS AND A WAITING PERIOD OF AS LONG AS FIVE DAYS TO FACILITATE A REVIEW OF CRIMINAL RECORDS CLINTON DESCRIBED THE BILL AS ONLY A BEGINNING IN WHAT MUST BE A LONG AND RELENTLESS ASSAULT ON THE PROBLEMS OF CRIME AND VIOLENCE IN THIS COUNTRY VOTER CONCERN OVER CRIME WAS A MAJOR POLITICAL FORCE BEHIND THE MEASURE AND HELPED TO ISOLATE CONSERVATIVES ALIGNED WITH THE NATIONAL RIFLE ASSOCIATION MUSLIM EXTREMISTS SET OFF A CAR BOMB OUTSIDE A SCHOOL IN CAIRO IN AN ATTEMPT TO ASSASSINATE EGYPT'S PRIME MINISTER SEDKI HE ESCAPED UNHURT BUT AN 11YEAROLD GIRL WAS KILLED AND AT LEAST 18 PEOPLE WERE INJURED THE MILITANT GROUP JIHAD CLAIMED RESPONSIBILITY FOR THE ATTACK THE UN ACCUSED BOSNIAN SERB FORCES OF HAMPERING EFFORTS TO BRING FOOD AND SUPPLIES TO MILLIONS OF CIVILIANS IN CENTRAL BOSNIA A RELIEF CONVOY CARRYING FLOUR SHOES PLASTIC SHEETING AND NAILS FOR THE MUSLIM ENCLAVE OF ZEPA IN EASTERN BOSNIA WAS DELAYED FOR THREE HOURS BEFORE BEING ALLOWED TO CONTINUE UN OFFICIALS SAID SUPERFUND PROVISIONS ARE BEING REVISED WITH REGARD TO THE LIABILITY OF BUSINESSES THAT DUMP HAZARDOUS WASTE AND A COMPROMISE PLAN HAS BEEN PROPOSED THE EPA AND THE TREASURY DEPARTMENT WHICH HAVE BEEN AT ODDS OVER THE ISSUE FOR MONTHS ARE SAID TO BE CLOSE TO AGREEMENT ON THE LIABILITY ISSUE THE EPA AND CALIFORNIA ARE NEARING AN AUTOEMISSIONS TESTING COMPROMISE THAT WOULD AVOID HAVING THE STATE LOSE FEDERAL ROADCONSTRUCTION FUNDS THE ACCORD WOULD SET UP A STATERUN NETWORK OF TESTING SITES BUT THE STATE ALSO WOULD RETAIN FOR THE NEXT YEAR OR TWO A MODIFIED VERSION OF ITS DECENTRALIZED SYSTEM GERMANY'S KOHL SUFFERED A SHARP SETBACK WHEN HIS NOMINEE FOR PRESIDENT WITHDREW FROM THE RACE THE CHANCELLOR'S FAVORED CANDIDATE STEFFEN HEITMANN FROM THE EASTERN STATE OF SAXONY HAD BEEN CRITICIZED BECAUSE OF HIS VIEWS CONCERNING GERMAN HISTORY THE ROLE OF WOMEN AND FOREIGNERS AMERICAN EMBASSIES IN ASIA WARNED US CITIZENS OF POSSIBLE TERRORIST ACTIVITIES FOLLOWING CLINTON'S MEETING WEDNESDAY WITH BRITISH AUTHOR RUSHDIE THE INDIANBORN WRITER DESCRIBED THE WASHINGTON MEETING AS THE PINNACLE OF HIS CAMPAIGN TO MAKE IRAN LIFT ITS DEATH SENTENCE AGAINST HIM FOR HIS NOVEL THE SATANIC VERSES TWO 11YEAROLD BOYS WERE CONVICTED IN BRITAIN OF BEATING TO DEATH A TODDLER ON FEB 12 THE JUDGE DECLARING THE TWO YOUTHS GUILTY OF AN ACT OF UNPARALLELED EVIL AND BARBARITY GAVE THEM AN INDEFINITE SENTENCE WEDNESDAY OF VERY VERY MANY YEARS THE SAVAGE SLAYING HORRIFIED BRITAIN AND PROMPTED NATIONWIDE SOULSEARCHING GEORGIAN LAWMAKERS REFUSED LEADER SHEVARDNADZE'S ORDER TO TAKE A TWOMONTH RECESS AFTER HE SAID THE EXSOVIET REPUBLIC WOULD GET A NEW CONSTITUTION AND A NEW PARLIAMENT THE LEGISLATORS DECIDED THEY WOULD RESUME WORK WITH SOME ACCUSING SHEVARDNADZE OF TAKING DICTATORIAL STEPS RUSSIA'S TOP INTELLIGENCE OFFICIAL SAID THAT IF NATO ADMITS FORMER SOVIETBLOC NATIONS IT WILL ENDANGER ARMS ACCORDS FORCE MOSCOW TO REVISE ITS DEFENSE POLICY AND INCREASE POLITICAL TENSIONS IN RUSSIA DIED ANTHONY BURGESS 76 PROLIFIC BRITISH WRITER WHOSE NOVELS INCLUDED A CLOCKWORK ORANGE IN LONDON OF CANCER 9311260133 931126 RELATIONSHIP INVESTING' SHOWS STRAINS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL THE LATEST RAGE AMONG PENSION FUNDS IS RELATIONSHIP INVESTING THE PRACTICE OF GIVING A POORLY PERFORMING COMPANY A PAT ON THE BACK AND A HELPING HAND RATHER THAN A SWIFT KICK HOWEVER GRACIOUS THIS APPROACH SOUNDS ITS WEAKNESSES ARE BECOMING READILY APPARENT IN A PROXY FIGHT CULMINATING THIS WEEKEND IN SKOKIE ILL BIG INVESTORS IN MARK CONTROLS CORP ARE WAGING JUST THE TYPE OF OLDFASHIONED FIGHT FOR BOARD SEATS THAT SUCH INVESTING IS SUPPOSED TO AVOID THINGS STARTED OUT FRIENDLY THREE YEARS AGO THE INVESTOR GROUP BEGAN ACQUIRING A 9 STAKE BELIEVING THAT WITH ENOUGH ATTENTION THE INDUSTRIALPARTS MAKER COULD BECOME A CINDERELLA BUT NOW MARK CONTROLS ESSENTIALLY IS TELLING THE WOULDBE PRINCE CHARMING TO GET LOST MARK CONTROLS SHAREHOLDERS MUST VOTE BY TODAY ON THE GROUP'S PROPOSAL TO EXPAND THE FIVEPERSON BOARD TO EIGHT BY ADDING THREE NONMANAGEMENT DIRECTORS MARK CONTROLS MANAGEMENT DOESN'T WANT TO EXPAND THE BOARD AND SAYS ITS POLLS INDICATE A COMPANY VICTORY BUT PETER J JACULLO AN ADVISER TO THE INVESTOR GROUP CLAIMS TO HAVE CONSIDERABLE SUPPORT FROM BIG INVESTORS AND IS HOPING FOR AN 11THHOUR WIN I'M NOT SURE I'D BE WILLING TO DO THIS AGAIN MR JACULLO SAYS OF THE 200000 BOARDEXPANSION CAMPAIGN THE GROUP INITIATED LAST MONTH WHY NOT JUST SELL YOUR SHARES AND GO AWAY THAT'S PROBABLY A MORE RATIONAL THING TO DO MANY SHAREHOLDER ACTIVISTS ARE INTERESTED IN THE SKOKIE CASE WHICH SHOWS WHAT CAN HAPPEN WHEN A BIG INVESTOR TRIES TO LOOK OVER A MANAGER'S SHOULDER WHILE STILL TRYING TO KEEP A FRIENDLY RELATIONSHIP SOME SHAREHOLDER ACTIVISTS CALL THIS KISSYFACE INVESTING TO DISTINGUISH IT FROM THE INYOURFACE INVESTING FOR WHICH CERTAIN BIG INVESTORS HAVE BECOME KNOWN WHILE IT'S STILL UNCLEAR HOW WELL THE TACTIC CAN WORK THERE'S NO DOUBT MORE INVESTORS WILL BE TRYING IT THE CALIFORNIA NEW YORK STATE AND GENERAL MOTORS CORP PENSION FUNDS RECENTLY PLEDGED A TOTAL OF 325 MILLION TO A RELATIONSHIP FUND SPONSORED BY DILLON READ & CO AT LEAST TWO OTHER RELATIONSHIP FUNDS ALSO ARE SEEKING INVESTMENTS AND DIRECTORS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM ARE DEBATING WHETHER TO CREATE THEIR OWN SUCH FUND WARREN BUFFETT IS EVERYONE'S MODEL FOR RELATIONSHIP INVESTING ACCORDING TO JAMES HEARD PRESIDENT OF INSTITUTIONAL SHAREHOLDER SERVICES A CONSULTING FIRM BUT MANY CORPORATE MANAGERS SAY THEY DOUBT PENSION FUNDS CAN OFFER BUSINESS ADVICE ON PAR WITH THAT OF THE OMAHA NEB WIZARD IN SKOKIE MANAGEMENT INITIALLY WELCOMED INPUT FROM MR JACULLO AND OTHERS ASSOCIATED WITH EUCALYPTUS INVESTMENTS LTD AN OFFSHORE COMPANY CONTROLLED BY A HONG KONG FAMILY THAT HAS EARNED AN 11 COMPOUNDED ANNUAL RETURN ON 454000 MARK CONTROLS SHARES IT BOUGHT AT AN AVERAGE OF 660 APIECE MR JACULLO WHO OWNS 7600 MARK CONTROLS SHARES IS A FORMER PARTNER WITH BOSTON CONSULTING GROUP THEY VISITED OUR PLANTS AND HAD DISCUSSIONS ON POTENTIAL ACQUISITIONS WILLIAM BENDIX MARK CONTROLS' PRESIDENT AND CHIEF EXECUTIVE SAYS OF MR JACULLO AND THE EUCALYPTUS INVESTORS WE AGREED ON SOME STRATEGIES AND SOME WE DIDN'T FOR THE PAST TWO YEARS THE TWO SIDES HAVE DIFFERED OVER THE FUTURE OF MARK CONTROLS' VALVE BUSINESS WHICH GENERATED MORE THAN HALF THE COMPANY'S 1992 SALES OF 862 MILLION THE REST CAME FROM INDUSTRIAL CONTROL DEVICES AND INSTRUMENTS MARK CONTROLS' VALVE SALES AND VALVE PRETAX PROFIT FELL IN 1992 MR JACULLO SAYS HE CONCLUDED THAT INDUSTRY PROFIT MARGINS WERE GENERALLY ERODING THAT MARK CONTROLS WAS LOSING MARKET SHARE AND THAT THE COMPANY OUGHT TO SELL THE VALVE UNITS TO SOME BIGGER PLAYER WHO WOULD PAY A PREMIUM FOR A STRATEGIC FIT HE BELIEVED THE COMPANY SHOULD FOCUS ON EXPANDING CERTAIN CONTROLS BUSINESSES BUT MR BENDIX COUNTERS THAT THE VALVE DOWNTURN IS CYCLICAL A SALE WOULD BE ILLTIMED COSTCUTTING MEASURES ARE IN PLACE AND ORDER BOOKS SHOW A REBOUND FOR 1994 IN FACT HE'S SO BULLISH THAT IN SEPTEMBER HE ANNOUNCED AN AGREEMENT TO BUY A SMALL NORWEGIAN VALVE COMPANY THEY LIKE TO RUN COMPANIES HE SAYS OF THE EUCALYPTUS GROUP THEY LIKE THEIR OPINIONS ON MATTERS TO BE OBEYED FEELING THOROUGHLY REBUFFED THE GROUP PROPOSED ON APRIL 8 TO BUY MARK CONTROLS IN ORDER TO PUT ITS MEMBERS' NOTIONS TO WORK ON THEIR OWN THEY BID 908 A SHARE A 14 PREMIUM TO THE STOCK'S MARKET PRICE AT THE TIME MARK CONTROLS REJECTED THE BID WHICH THE INVESTORS THEN RAISED TO 965 ANOTHER REJECTION MANAGEMENT CONTENDS THE PROPOSED PRICE WAS TOO LOW THE STOCK CLOSED WEDNESDAY AT 10 1/8 UP 7/8 OR 95 ON THE NASDAQ STOCK MARKET SUCH PRICE CHANGES AREN'T UNUSUAL FOR THE THINLY TRADED STOCK IN A TWIST THAT INTRIGUES SHAREHOLDER ACTIVISTS THE THREE CANDIDATES PUT FORWARD FOR BOARD SEATS IN THE PROXY CONTEST ALL VOW THAT THEY WON'T BE BEHOLDEN TO THEIR SPONSOR ONE CANDIDATE IS JOHN POUND A HARVARD UNIVERSITY FINANCE PROFESSOR WHO HAS WRITTEN EXTENSIVELY ON CORPORATEGOVERNANCE ISSUES AND IS HIGHLY RESPECTED IN SHAREHOLDERRIGHTS CIRCLES MANAGEMENT HOWEVER QUESTIONS HIS INDEPENDENCE IT NOTES THAT EUCALYPTUS HAS GIVEN HIM 10000 AND 1875 MARK CONTROLS SHARES MR POUND SAYS THE COMPENSATION COVERS HIS VISITS TO PERSUADE INSTITUTIONAL INVESTORS TO VOTE FOR THE BOARD EXPANSION WHILE THE THREE BOARD CANDIDATES COULDN'T CARRY THE DAY IN A FUTURE MANAGEMENT VOTE THEY COULD BE A CATALYST FOR CHANGE MR JACULLO SAYS EVEN IF HOLDERS DO VOTE TO EXPAND THE BOARD THEY SEEM LIKELY TO VOTE DOWN A SEPARATE PROPOSAL BY THE EUCALYPTUS GROUP A NONBINDING RESOLUTION ASKING THE BOARD TO HIRE AN INVESTMENT BANKER TO EXPLORE SELLING ALL OR PART OF THE COMPANY SOME INSTITUTIONAL HOLDERS ARE BACKING AN EXPANDED BOARD BUT VOTING AGAINST THE EXPLOREASALE RESOLUTION ARGUING THAT IT'S THE BOARD'S JOB TO DECIDE SUCH A MATTER 9311260132 931126 ABREAST OF THE MARKET INDUSTRIALS GAIN 1341 TO 368758 AMID STABILITY IN BOND MARKET BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE STOCK MARKET COASTED INTO THE THANKSGIVING HOLIDAY WITH MODEST GAINS AND MILD VOLUME ON WEDNESDAY PRICES EDGED HIGHER IN EARLY TRADING AND SPENT THE REST OF THE SESSION LOCKED IN A TIGHT RANGE THE DOW JONES INDUSTRIAL AVERAGE GAINED 1341 OR 036 TO 368758 BROADER INDEXES ALSO ADVANCED STABILITY IN THE BOND MARKET AFTER A SHARP RALLY TUESDAY CLEARED THE WAY FOR THE ADVANCE TWO UPBEAT READINGS ON THE ECONOMY HELPED ENCOURAGE STOCK INVESTORS WITHOUT UPSETTING INFLATIONWARY BOND OWNERS THE COMMERCE DEPARTMENT SAID DURABLEGOODS ORDERS JUMPED 2 LAST MONTH WHILE THE LABOR DEPARTMENT REPORTED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE A SCANT 1000 LAST WEEK THE TREASURY'S 30YEAR BOND WAS LITTLE CHANGED ENDING WITH A YIELD OF 630 CONSISTENT INCREASES IN YIELDS IN THE PAST MONTH HAVE UNSETTLED STOCK INVESTORS WHO VIEW LOW INTEREST RATES AS ONE OF THE MAIN REASONS FOR THE STOCK MARKET'S GAINS THIS YEAR THE APPROACHING HOLIDAY LEFT INVESTORS UNWILLING TO MAKE NEW BETS ALFRED GOLDMAN DIRECTOR OF TECHNICAL ANALYSIS AT AG EDWARDS & SONS SAID NEW YORK STOCK EXCHANGE VOLUME FELL TO 2293 MILLION SHARES FROM 2592 MILLION TUESDAY IT WAS THE LIGHTEST ONEDAY TALLY SINCE OCT 11 WHEN ACTIVITY WAS THINNED BY THE COLUMBUS DAY HOLIDAY THE STANDARD & POOR'S 500 STOCK INDEX ROSE 133 OR 029 TO 46236 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 089 OR 035 TO 25513 AND THE DOW JONES EQUITY MARKET INDEX CLIMBED 148 OR 034 TO 43729 THE NASDAQ STOCK MARKET RALLIED FURTHER BUOYED BY STRENGTH IN TECHNOLOGY ISSUES THE NASDAQ COMPOSITE INDEX WHICH SURGED 118 TUESDAY GAINED 636 OR 085 TO 75318 IT HAS BEEN DUE FOR A BOUNCE AFTER BEING CLOBBERED IN THE PAST TWO WEEKS OBSERVERS SAID THE MARKET FOLLOWED A HISTORIC PATTERN OF STRENGTH AROUND THANKSGIVING AG EDWARDS' MR GOLDMAN CITED STATISTICS INDICATING HIGHER PRICES OVER THE PERIOD EVERY YEAR BUT SIX IN THE PAST 40 YEARS ANALYSTS THOUGH ARE LESS CONFIDENT ABOUT THE WEEKS FOLLOWING THE HOLIDAY I SUSPECT THE INTEREST RATE BACKUP IS NOT YET OVER AND THEREFORE SOME FURTHER PROBLEMS FOR THE STOCK MARKET OVER THE SHORT TERM ARE LIKELY SAID ERIC MILLER MARKET STRATEGIST AT DONALDSON LUFKIN & JENRETTE HE EXPECTS SUSTAINABLE GAINS TO EMERGE JUST AHEAD OF YEAR END AND NEW HIGHS IN MAJOR MARKET INDEXES EARLY NEXT YEAR PARAMOUNT COMMUNICATIONS JUMPED 3 7/8 TO 80 1/8 QVC NETWORK LOST 1 1/8 TO 47 3/4 ON THE NASDAQ MARKET AND VIACOM CLASS B JUMPED 2 3/4 TO 44 1/2 ON THE AMEX A CHANCERY COURT JUDGE IN DELAWARE STRIPPED PARAMOUNT OF A KEY ANTITAKEOVER DEFENSE IT HAD USED TO DEFLECT AN ACQUISITION OFFER FROM QVC THE NEW YORK MEDIA COMPANY FAVORS A PURCHASE OFFER IT RECEIVED FROM VIACOM PARAMOUNT AND VIACOM SAID THEY WILL APPEAL THE COURT'S DECISION INTERNATIONAL BUSINESS MACHINES JUMPED 2 TO 55 1/8 ON HEAVY VOLUME OF 42 MILLION SHARES SMITH BARNEY SHEARSON UPGRADED ITS RATING ON THE COMPUTER CONCERN TO OUTPERFORM FROM NEUTRAL THE BATTERED STOCK HASN'T REACHED THESE LEVELS SINCE MIDMARCH SEMICONDUCTOR STOCKS THOUGH WERE THE STRONGEST IN THE TECHNOLOGY GROUP ANALYSTS SAID INVESTORS WERE BARGAINHUNTING IN THE RECENTLY BATTERED SEGMENT ON NASDAQ INTEL JUMPED 1 1/8 TO 60 AND APPLIED MATERIALS INCREASED 1 1/4 TO 34 ON THE BIG BOARD MICRON TECHNOLOGY CLIMBED 1 3/8 TO 45 1/8 HUMANA RALLIED 1 1/8 TO 16 1/2 THE WALL STREET JOURNAL REPORTED THAT THE HEALTHCARE COMPANY'S CHAIRMAN DAVID A JONES HAS BEEN A BIG BUYER OF HUMANA STOCK THIS YEAR MR JONES IS HUMANA'S FOUNDER AND LARGEST SHAREHOLDER CHRYSLER ADVANCED 1 1/2 TO 53 7/8 FORD MOTOR 1 3/8 TO 61 AND GENERAL MOTORS 1 TO 53 3/4 AS THE MAJOR NORTH AMERICAN AUTO MAKERS RELEASED SALES DATA CARS SOLD AT A STRONG SEVENMILLIONUNIT RATE IN THE SECOND 10 DAYS OF THIS MONTH UNCHANGED FROM THEIR EARLYNOVEMBER RATE WMX TECHNOLOGIES INCREASED 1 3/8 TO 26 3/4 AFTER PRUDENTIAL SECURITIES ANALYST VISHNU SWARUP UPGRADED A RATING ON THE ENVIRONMENTAL SERVICES COMPANY'S STOCK TO BUY FROM HOLD MASCOTECH JUMPED 2 TO 24 1/8 AND USG GAINED 1/2 TO 24 1/2 SMITH BARNEY SHEARSON UPGRADED MASCOTECH TO OUTPERFORM FROM NEUTRAL AND INITIATED COVERAGE OF USG WITH A NEUTRAL OPINION 9311260131 931126 AS VIRGIN GROUP PLANS ASIAN ROUTES ITS FOUNDER CONSIDERS A SPINOFF AIRLINE BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG RICHARD BRANSON'S ADDITION OF ASIAN ROUTES TO HIS VIRGIN ATLANTIC AIRWAYS COULD LEAD THE BRITISH BUSINESS MAVERICK TO CREATE A SEPARATE CARRIER DEDICATED TO THE PACIFIC A LONDONHONG KONG ROUTE IS SCHEDULED TO BE LAUNCHED FEB 21 AND THE 43YEAROLD VIRGIN ATLANTIC CHAIRMAN WHILE VISITING THE TERRITORY IN ADVANCE OF THE ROUTE'S DEBUT SAID HE EXPECTS HIS CLOSELY HELD AIRLINE TO BE FLYING BETWEEN LONDON AND SINGAPORE BY THE END OF 1994 WITHIN THREE YEARS HE HOPES TO BEGIN SERVICE FROM LONDON TO CHINA AS WELL AS TO KUALA LUMPUR MALAYSIA AND BANGKOK THAILAND WE'RE COMING IN WITH A VENGEANCE HE SAID VIRGIN ATLANTIC IS A UNIT OF VIRGIN GROUP PLC AND ACCORDING TO MR BRANSON BIG IS UGLY IN THE CUTTHROAT AIRLINE BUSINESS SO WHEN VIRGIN ATLANTIC GETS A LITTLE BIT BIGGER WE'LL DIVIDE IT INTO TWO A VIRGIN PACIFIC RATHER THAN VIRGIN ATLANTIC WOULD BE VERY MUCH IN THE CARDS FOR ASIA HE SAID THE SPINOFF CARRIER WOULD HAVE ITS OWN OFFICE MANAGING DIRECTOR AND STAFF AND WOULD OVERSEE OPERATIONS IN JAPAN WHICH VIRGIN ALREADY SERVES AS WELL AS OTHER ASIAN DESTINATIONS MR BRANSON SAID A DECISION TO MAKE THE SPLIT WILL DEPEND ON HOW VIRGIN FARES ON ITS LONDONHONG KONG ROUTE WHICH MR BRANSON REGARDS AS KEY TO REGIONAL EXPANSION WE SEE HONG KONG AS A BRIDGEHEAD INTO CHINA HE SAID WE'RE IN DISCUSSIONS WITH AVIATION AUTHORITIES ABOUT ONWARD SERVICE TO SOUTH CHINA FROM HONG KONG MEANWHILE TO PROMOTE HIS AIRLINE MR BRANSON WHOSE CASUAL DRESS AND LONGISH HAIR ARE A REMINDER OF HIS BEGINNINGS IN THE EARLY 1970S IN THE ROCKMUSIC BUSINESS PLANS TO OPEN A VIRGIN MUSIC AND VIDEO STORE IN THE TERRITORY VIRGIN GROUP'S MANAGING DIRECTOR TREVOR ABBOTTS IS CURRENTLY IN HONG KONG SCOUTING OUT A SITE FOR THE STORE WHICH IS EXPECTED TO OPEN WITHIN NINE MONTHS POSSIBLY IN A JOINT VENTURE PARTNERSHIP THE VIRGIN MUSICSTORE CHAIN HAS OUTLETS IN EUROPE JAPAN AND AUSTRALIA DETAILS ON THE HONG KONG STORE ARE EXPECTED IN FEBRUARY THE AIRLINE MOGUL WHO PROCLAIMS THAT CARRIERS SHOULD DO MORE THAN JUST GIVE PASSENGERS A RIDE WILL LOAD THE LONDONHONG KONG FLIGHT WITH THE KINDS OF HIGHTECH ENTERTAINMENT THAT HAVE MADE VIRGIN FAMOUS SEATBACK VIDEO MONITORS AVAILABLE IN ALL CLASSES WILL INCLUDE 14 INTERACTIVE CHANNELS INCLUDING COMPUTERIZED GAMBLING PASSENGERS WILL NOT BE ABLE TO PLAY FOR MONEY IN THE FIRST TWO MONTHS LATER THEY WILL BE ALLOWED TO USE CREDIT CARDS TO BET MANICURES WILL ALSO BE AVAILABLE ON BOARD IN ADDITION WE'RE TRAINING UP A NEW GROUP OF MASSEURS SAID MR BRANSON SPECIFYING THAT MASSAGES WOULD CONCENTRATE ON THE NECK AND HEAD IN SEPTEMBER VIRGIN OVERCAME A MAJOR HURDLE IN ITS ASIA PUSH WHEN THE AIRLINE CLINCHED TAKEOFF TIMES FROM HONG KONG'S CROWDED KAI TAK AIRPORT THAT WILL PUT PASSENGERS IN LONDON EARLY IN THE MORNING THE SLOTS ENABLE VIRGIN TO COMPETE DIRECTLY WITH BRITISH AIRWAYS PLC AND CATHAY PACIFIC AIRWAYS LTD WHICH HAVE LONG DOMINATED THE ROUTE VIRGIN WILL INITIALLY FLY ONCE DAILY WHILE THE OTHER CARRIERS FLY TWICE DAILY BUT MR BRANSON PLANS TO INCREASE FREQUENCY WITHIN THREE MONTHS OF THE ROUTE'S LAUNCH ITS EXISTING ROUTES WHICH ARE PRIMARILY TRANSATLANTIC VIRGIN HAS BEEN PARTICULARLY SUCCESSFUL AT LURING BUSINESS PASSENGERS FROM RIVAL CARRIERS BY SELLING FIRSTCLASS SERVICE AT PRICES EQUIVALENT TO BUSINESSCLASS FARES ABOUT 50 OF VIRGIN'S INCOME COMES FROM BUSINESS TRAVELERS FARES FOR THE LONDONHONG KONG ROUTE HAVEN'T BEEN SET MR BRANSON SAID VIRGIN IS INVESTING 15 MILLION TO 20 MILLION EXCLUDING EQUIPMENT TO LAUNCH THE HONG KONG SERVICE AND SAID HE IS HIRING 100 FLIGHT ATTENDANTS IN HONG KONG TO STAFF THE NEW AIRBUS A340S AND BOEING 747400S THAT WILL FLY THE ROUTE HIS AIRLINE INCURRED A SMALL LOSS IN THE YEAR ENDED OCT 31 BUT MR BRANSON SAID HE EXPECTS THE CARRIER TO TURN A MODEST PROFIT THIS YEAR ON REVENUE OF ABOUT 1 BILLION 9311260130 931126 INTERNATIONAL WORLD ECONOMY FOR ASIAPACIFIC SUMMIT TO MAKE GOOD ON PROMISE COMPANIES MUST FOLLOW UP BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PHOTO OPS ARE OVER AND LEADERS HAVE LEFT SEATTLE PLEASED WITH THEMSELVES FOR A JOB WELL DONE BUT WILL LAST WEEK'S ASIAPACIFIC SUMMIT NOW INSPIRE USEFUL FOLLOWUP WORK THAT ANYONE CARES ABOUT IT WILL IF US CORPORATE EXECUTIVES ALREADY DEEPLY INVOLVED IN THE ASIAN MARKET HAVE THEIR WAY BUT DON'T EXPECT ANYTHING SUDDEN OR DRASTIC ON THE BUSINESS POLICY FRONT RESULTS WILL DEPEND GREATLY ON JUST HOW ZEALOUSLY THOSE BUSINESS OFFICIALS PLUS THEIR COUNTERPARTS AROUND THE PACIFIC RIM DEVOTE THEMSELVES TO IMPROVING THE REGION'S TRADE AND INVESTMENT CLIMATE IF THEY SLOUGH OFF THE ASIAPACIFIC ECONOMIC COOPERATION ORGANIZATION MAY WELL PRODUCE JOLLY FEELINGS AND POMPOUS SPEECHES BUT BUREAUCRATIC TORPOR WHEN ITS LEADERS MEET NEXT YEAR IN JAKARTA INDONESIA BUT THE OPPORTUNITY FOR SOMETHING MORE SUBSTANTIAL DOES EXIST APEC IS A LOOSE COLLECTION OF 17 PACIFIC NATIONS CHILE SOON WILL BE NUMBER 18 WHOSE VAGUE COMMON GOALS ARE TO IMPROVE POLITICAL RELATIONS AND SPEED ECONOMIC GROWTH ESPECIALLY VIA THE PRIVATE SECTOR TO THAT END APEC HAS ESTABLISHED 10 WORKING COMMITTEES TO TACKLE SPECIFIC PROBLEMS AND WANTS BUSINESSMEN TO JOIN AS FULL MEMBERS IT ALSO WANTS EXECUTIVES AT OTHER MEETINGS TO HELP MINISTERS FIND WAYS AROUND OBSTACLES TO REGIONAL COMMERCE WE WANT TO CREATE AN AREA OF INCREASINGLY OPEN TRADE INVESTMENT TECHNOLOGY TRANSFER TECHNICAL COOPERATION AND SO FORTH SAYS ALI ALATAS INDONESIA'S FOREIGN MINISTER ULTIMATELY EXPLAINS HIS US COUNTERPART WARREN CHRISTOPHER IT IS THE PRIVATE SECTOR THAT DRIVES ASIA'S DYNAMISM THAT IS WHY WE HAVE ACTED TO EXPAND APEC'S ENGAGEMENT WITH THE BUSINESS COMMUNITY JUST HOW REMAINS A BIT UNCLEAR IN THE US SEVEN PRIVATE ORGANIZATIONS CONCERNED WITH VARIOUS BITS OF ASIA SUCH AS THE USCHINA BUSINESS COUNCIL AND THE USASEAN COUNCIL FOR BUSINESS AND TECHNOLOGY HAVE FORMED AN UMBRELLA GROUP TO BE A BRIDGE BETWEEN COMPANIES AND GOVERNMENT IT WILL TRACK APEC PANELS AND ENCOURAGE EXECUTIVES TO SIGN UP JAPAN CANADA AND OTHERS HAVE SIMILAR GROUPS TO ACT FOR COMPANIES THERE EVEN COMPANIES FROM THE EUROPEAN COMMUNITY CAN PARTICIPATE ON A LIMITED BASIS THE KEY IS WHETHER COMPANIES DO PARTICIPATE ON THE US SIDE AT LEAST THERE ARE PROBLEMS ONE IS A SHORTAGE OF EXECUTIVE TIME AND TALENT A CONDITION INTENSIFIED BY EXTENSIVE STREAMLINING INSIDE SO MANY US COMPANIES THIS MAKES THEM RELUCTANT TO SPARE MANAGERS FOR FARAWAY MEETINGS THAT DON'T PRODUCE CLEAR BENEFITS INTEL CORP THE MICROCHIP MAKER WHICH HAS A QUARTER OF ITS BUSINESS IN ASIA IS ONE OF THESE THERE ARE PLACES WHERE WE WOULD BE MORE THAN HAPPY TO PARTICIPATE SAYS A COMPANY OFFICIAL BUT HE ADDS INTEL IS TOO LEAN AN ORGANIZATION FOR MEETINGS WHERE MANAGERS MAINLY STAND BEFORE CAMERAS TO WAVE AND BE WONDERFUL ANOTHER PROBLEM IS A SURPRISINGLY SHALLOW US BUSINESS INVOLVEMENT AMERICAN BUSINESS SEEMS TO BE UNDERREPRESENTED IN GENERAL IN ASIA SAYS LORING KNOBLAUCH A VICE PRESIDENT OF HONEYWELL INC WHICH ITSELF HAS A BOOMING PACIFIC TRADE ASIA IS A TOUGH SELL ESPECIALLY FOR COMPANIES WITH LIMITED OVERSEAS EXPERIENCE NOTES LINDA LIM OF THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL BUT APEC CAN BE QUITE USEFUL IN A PRACTICAL WAY TO THE BUSINESS COMMUNITY SAYS RALPH GERSON EXECUTIVE VICE PRESIDENT OF GUARDIAN INDUSTRIES CORP WHO ATTENDED THE SEATTLE MEETING FOR EXAMPLE THE GLASSMAKER WOULD BENEFIT IF MEMBER STATES SET COMMON TECHNICAL STANDARDS FOR GLASS SIMPLIFYING COSTLY CERTIFICATION PROCEDURES MANY COMPANIES WANT TO CUT OTHER BUREAUCRACY SUCH AS BY STANDARDIZING CUSTOMS FORMS ANYTHING THAT WOULD MAKE THE ADMINISTRATION OF EXPORTS SIMPLER WOULD BE WELCOME SAYS A FORD MOTOR CO OFFICIAL SOME COMPANIES HOPE TO LOBBY FOR LOWER TARIFFS HONEYWELL HAS FACED ONEROUS DUTIES ON SPARE PARTS IMPORTS IN ASIA FOR EXAMPLE WHILE STEVEN GREEN CHAIRMAN OF ASTRUM INTERNATIONAL CORP FINDS ASIAN SALES OF HIS COMPANY'S SAMSONITE SUITCASES HINDERED BY HIGH RATES BUT CHANGE MAY COME ONLY AT ASIA'S SLOWEST PACE IF COMMITTEES SET NEW PROCEDURES MEMBER STATES WOULD ADOPT THEM SEPARATELY APEC HAS NO CENTRAL BUREAUCRACY TO DO THE JOB AS IN THE EC THUS MUCH DEPENDS UPON HOW ACTIVELY COMPANIES SEEK REVISIONS AND HOW GOVERNMENTS RESPOND THE RESULT COULD YET BE ONE BIG MUDDLE CLASSIFY ME IN THE REMAINS TO BE SEEN' CATEGORY SAYS GUARDIAN'S MR GERSON 9311260129 931126 FAMILY FEUD THREATENS GILLETTE'S BID FOR STAKE IN INDIAN BLADE MAKER HLM BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI A FAMILY FEUD HAS CAST A FIVEO'CLOCK SHADOW OVER GILLETTE CO'S PLAN TO BUY 49 OF INDIA'S BIGGEST MAKER OF SHAVING BLADES INDIA'S FOREIGN INVESTMENT PROMOTION BOARD LAST MONTH APPROVED THE BOSTONBASED COMPANY'S PROPOSED ACQUISITION OF 49 OF HARBANS LAL MALHOTRA & SONS LTD OR HLM FOR 203 MILLION BUT RAJINDER KUMAR MALHOTRA THE YOUNGEST OF THREE BROTHERS WHO EACH OWNS ABOUT A THIRD OF CALCUTTABASED HLM FILED LEGAL CHALLENGES AGAINST THE TRANSACTION MR MALHOTRA WHO HAD A FALLING OUT WITH HIS BROTHERS YEARS AGO IS PROTESTING BEING EXCLUDED FROM THEIR NEGOTIATIONS WITH GILLETTE EVEN THOUGH HE AND HIS IMMEDIATE FAMILY OWN 32 OF HLM HE ALSO CONTENDS THAT HLM SHARES ARE WORTH MORE THAN WHAT GILLETTE AGREED TO PAY MR MALHOTRA APPEALED TO THE FOREIGNINVESTMENT BOARD THE COMPANY LAW BOARD A TRIBUNAL WITH AUTHORITY OVER COMPANYLAW MATTERS AND THE SECURITIES AND EXCHANGE BOARD ONCE HLM IS TAKEN OVER GILLETTE WILL OWN A MAJORITY OF THE INDIAN BLADES MARKET FOR A RELATIVELY SMALL INVESTMENT SAID VIPIN MALIK AN ACCOUNTANT WHO REPRESENTS MR MALHOTRA HLM CONTROLS 85 OF THE INDIAN BLADE MARKET ACCORDING TO THE ECONOMIC TIMES NEWSPAPER IN AN AFFIDAVIT TO THE COMPANY LAW BOARD THE YOUNGEST MR MALHOTRA SAID ONE OF HIS BROTHERS IS IN POOR HEALTH AND THE OTHER DOESN'T LIVE IN INDIA THUS HE CONTENDS THEY HAVE NO LONGTERM INTEREST IN THE COMPANY WHICH HE FEARS EVENTUALLY WILL BE ABSORBED BY GILLETTE NEITHER OF THE TWO ELDER BROTHERS COULD BE REACHED IMMEDIATELY FOR COMMENT AND A GILLETTE OFFICIAL IN INDIA DIDN'T RETURN PHONE CALLS SEEKING COMMENT ACCORDING TO GILLETTE'S PROPOSAL TO THE FOREIGNINVESTMENT BOARD THE COMPANY RECEIVED PERMISSION TO ACQUIRE 49 OF NVI ENGINEERING CO AN HLM SUBSIDIARY THAT MANUFACTURES BLADEMAKING MACHINERY GILLETTE ALSO INTENDS TO INVEST IN INDIA THROUGH ITS BRAUN APPLIANCES SUBSIDIARY AND THAT OTHER GILLETTE UNITS ARE EXAMINING INVESTMENT POSSIBILITIES THERE THESE OTHER INVESTMENTS COULD TOTAL 10 MILLION TO 15 MILLION THE PROPOSAL SAID THE COMPANY LAW BOARD LAST MONTH ASKED FOR INFORMATION RELATING TO THE PROPOSED HLM PURCHASE AND CRITICIZED THE TWO OLDER BROTHERS FOR THEIR ALLEGED FAILURE TO DISCLOSE FULL DETAILS OF DEVELOPMENTS WITH REGARD TO THE GILLETTE COLLABORATION DURING AN AUGUST HEARING THE BOARD ALSO ORDERED THE COMPANY NOT TO PROCEED WITH THE TRANSACTION WITHOUT APPROVAL FROM A GENERAL MEETING OF SHAREHOLDERS MR MALIK SAID THE YOUNGEST MR MALHOTRA HAS ENOUGH SHARES TO BLOCK SUCH A SALE THE COMPANY LAW BOARD IS DUE TO CONTINUE HEARINGS ON THE CASE IN DECEMBER MR MALIK CITED HIS CLIENT'S RIGHTS AS A MINORITY SHAREHOLDER AND ASKED THE SECURITIES BOARD TO WITHHOLD APPROVAL OF THE TRANSACTION HE ALSO ASKED THE FOREIGNINVESTMENT BOARD TO RECONSIDER APPROVAL 9311260128 931126 MARKETING & MEDIA AMERICAN GREETINGS GETS WHITE HOUSE HOLIDAY ORDER CLEVELAND AMERICAN GREETINGS CORP HAS BEEN CHOSEN BY THE CLINTONS TO MAKE THE FIRST FAMILY'S CHRISTMAS CARDS ALL 275000 OF THEM THAT'S A SWITCH FROM THE REPUBLICAN ADMINISTRATIONS WHEN ARCHRIVAL HALLMARK CARDS INC DESIGNED THE REAGAN AND BUSH FAMILIES' HOLIDAY GREETINGS NEITHER AMERICAN GREETINGS NOR THE WHITE HOUSE IS TELLING WHAT'S ON THIS YEAR'S CARD THOUGH A SPOKESMAN FOR THE FIRST LADY SAID THE PRESIDENT AND HILLARY RODHAM CLINTON HANDPICKED IT AMERICAN GREETINGS WILL ALSO BE MAKING 80000 TO 90000 CARDS FOR VICE PRESIDENT AL GORE'S FAMILY A SPOKESMAN FOR THE CLEVELAND CARD MAKER WOULDN'T SAY HOW MUCH THE CARDS COST BUT SAID THEY WOULD BE PAID FOR BY PRIVATE DONATIONS OR THE DEMOCRATIC NATIONAL COMMITTEE 9311260127 931126 PRICE/COSTCO SALES KIRKLAND WASH PRICE/COSTCO INC SAID SALES FOR THE FOUR WEEKS ENDED NOV 21 ROSE 3 TO 13 BILLION FROM 126 BILLION BUT SAMESTORE SALES FELL 5 FOR THE FIRST 12 WEEKS OF ITS FISCAL YEAR THE WAREHOUSERETAIL CHAIN REPORTED SALES OF 36 BILLION UP 5 FROM 342 BILLION IN THE COMPARABLE PERIOD A YEAR AGO SAMESTORE SALES AGAIN WERE OFF 5 THE COMPANY'S STOCK CLOSED DOWN 375 CENTS AT 1825 A SHARE WEDNESDAY IN NASDAQ STOCK MARKET TRADING 9311260126 931126 CINCINNATI BELL ACQUISITION CINCINNATI CINCINNATI BELL INC SAID IT PURCHASED FOR 63 MILLION WATS MARKETING OF AMERICA FROM FIRST DATA CORP BASED ON CERTAIN PERFORMANCE MILESTONES THE PRICE COULD INCREASE TO 88 MILLION THE TELECOMMUNICATIONS SERVICES COMPANY SAID IT WOULD COMBINE WATS MARKETING A TELEMARKETING CONCERN WITH ITS MARKETINGSERVICES UNIT MATRIXX MARKETING INC MATRIXX EMPLOYS ABOUT 4000 PEOPLE WATS HAS ABOUT 3000 EMPLOYEES 9311260125 931126 INTERNATIONAL AUSTRALIA'S ACCOUNT DEFICIT SYDNEY AUSTRALIA AUSTRALIAN EXPORTS ARE LIKELY TO HAVE DROPPED MORE THAN IMPORTS IN OCTOBER AS A RESULT THE NATION'S SEASONALLY ADJUSTED CURRENTACCOUNT DEFICIT IS EXPECTED TO HAVE WIDENED SLIGHTLY IN THE MONTH FROM SEPTEMBER ECONOMISTS SAY BUT OCTOBER CURRENTACCOUNT STATISTICS SCHEDULED FOR RELEASE MONDAY ARE UNLIKELY TO AFFECT AUSTRALIA'S OFFICIAL INTEREST RATES ECONOMISTS AND ANALYSTS SAY IF THEY ARE CLOSE TO EXPECTATIONS 9311260124 931126 THE BUSINESS OF LAW PLAN SCRAPPED FOR MERGER OF FIREARMS AGENCY FBI WASHINGTON A PLAN TO HELP STREAMLINE THE FEDERAL BUREAUCRACY BY MERGING THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS INTO THE FEDERAL BUREAU OF INVESTIGATION HAS BEEN SHELVED BY THE CLINTON ADMINISTRATION AN ATF SPOKESMAN SAID IT'S NICE TO BE OFFICIALLY OFF THE HOOK THERE FRANKLY HAS BEEN PLENTY ON OUR PLATE TO KEEP US BUSY WITH MORE TO COME SAID SPOKESMAN JACK KILLORIN THE DECISION CAME AS CONGRESS PASSED THE BRADY BILL IMPOSING A FIVEDAY WAITING PERIOD AND BACKGROUND CHECK FOR HANDGUN BUYERS THE MEASURE WHICH PRESIDENT CLINTON IS EXPECTED TO SIGN INTO LAW NEXT WEEK WILL INCREASE THE WORKLOAD FOR ATF THE AGENCY AN ARM OF THE TREASURY DEPARTMENT IS THE NATION'S MAIN ENFORCER OF FEDERAL FIREARMS LAWS AGENCY DIRECTOR JOHN W MAGAW NOTIFIED THE STAFF AND REGIONAL OFFICES TUESDAY THAT VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT TEAM HAD ABANDONED MERGER PLANS THE ANNOUNCEMENT WASN'T A SURPRISE GIVEN THE LACK OF CONGRESSIONAL SUPPORT OF A MERGER PUBLIC DEMAND FOR MORE GUN CONTROL AND THE SCRAPPING LAST MONTH OF A PROPOSAL TO COMBINE THE DRUG ENFORCEMENT ADMINISTRATION WITH THE FBI 9311260123 931126 FREDDIE MAC SETS PUSH IN APARTMENT MORTGAGE MARKET BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL HOME LOAN MORTGAGE CORP IS READY TO COMPLETE ITS REENTRY INTO THE MULTIFAMILY MORTGAGE MARKET WITH A BIG PUSH FREDDIE MAC SAID IT WILL SOON BEGIN MARKETWIDE PURCHASES OF NEW MULTIFAMILY MORTGAGES FOR CASH AND STANDS READY TO COMMIT AS MUCH AS 2 BILLION FOR THE PURCHASE OF MULTIFAMILY LOANS IN 1994 SEPARATELY FREDDIE MAC MOVED TO AID HOMEOWNERS WHOSE LOW EQUITY BLOCKS THEM FROM REFINANCING HIGHINTERESTRATE MORTGAGES THE CORPORATION SAID IT WILL BEGIN PURCHASING CERTAIN MORTGAGES WITH AS LITTLE AS 5 BORROWER EQUITY THE CORPORATION PREVIOUSLY HAD A 10 EQUITY REQUIREMENT FOR REFINANCING THE FEDERAL NATIONAL MORTGAGE ASSOCIATION TOOK A SIMILAR ACTION LAST WEEK THE APARTMENT INITIATIVE WILL FORMALLY BEGIN DEC 1 WHEN FREDDIE MAC STARTS ACCEPTING MORTGAGE LOAN APPLICATION PACKAGES THE CHANGE PROMISES TO INCREASE SUBSTANTIALLY THE AVAILABILITY OF CAPITAL FOR RENTAL HOUSING IN NOW UNDERSERVED URBAN AREAS SAID THOMAS WATT FREDDIE MAC'S SENIOR VICE PRESIDENT FOR MULTIFAMILY HOUSING FREDDIE MAC STOPPED PURCHASING MORTGAGES ON APARTMENT BUILDINGS IN 1990 TO STEM HEAVY LOSSES ON SUCH LOANS IT CAME UNDER SHARP CRITICISM FOR THE MOVE AND HAS BEEN RETURNING THE MARKET IN PHASES MR WATT SAID THE 2 BILLION COMMITMENT FOR 1994 COMPARES FAVORABLY WITH FREDDIE MAC'S MOST ACTIVE MULTIFAMILY YEARS DURING THE 1980S AND IS JUST A START HE SAID THE NEW PROGRAM MAKES US A MAJOR PLAYER AS A PURCHASER OF APARTMENT MORTGAGES WE BELIEVE THAT INVESTMENTQUALITY MORTGAGES EXIST IN ALL MARKET SEGMENTS ACROSS THE COUNTRY THE REFINANCING CHANGE WILL HELP PEOPLE WHO HAVE LOST EQUITY IN THEIR HOUSES WITH THE DECLINE OR SLOWER INCREASE IN HOME PRICES FOLLOWING THE RAPID ACCELERATION OF THE 1980S FREDDIE MAC SAID ITS NEW REFINANCING POLICY APPLIES ONLY TO SINGLEFAMILY FIXEDRATE MORTGAGES ON OWNEROCCUPIED PRIMARY RESIDENCES IT SAID REFINANCED MORTGAGES PURCHASED UNDER THE POLICY MUST HAVE BEEN FREDDIE MACOWNED AND THAT SOCALLED CASHOUT AND SUBORDINATE FINANCING PAYOFFS ARE INELIGIBLE IT SAID IT WILL SOON ISSUE A FORMAL COMMUNICATION TO LENDERS WITH DETAILS OF THE POLICY CHANGE 9311260122 931126 CREDIT RATINGS RYLAND GROUP INC STANDARD & POOR'S CORP SAID IT LOWERED RATINGS ON ABOUT 206 MILLION OF RYLAND'S DEBT S&P SAID THE COLUMBIA MD HOME BUILDER AND MORTGAGESERVICES CONCERN IS MORE HIGHLY LEVERAGED THAN BEFORE AND ITS COST OF CAPITAL WILL BE HIGHER THE AGENCY LOWERED TO DOUBLEBPLUS FROM TRIPLEBMINUS THE RATING ON 56 MILLION OF SENIOR NOTES THE RATING ON 100 MILLION OF SENIOR SUBORDINATED NOTES DUE 2002 WAS DOWNGRADED TO DOUBLEBMINUS FROM DOUBLEBPLUS ALL RATINGS HAVE BEEN REMOVED FROM CREDITWATCH WHERE THEY WERE PLACED MAY 17 S&P SAID 9311260121 931126 MARKETING & MEDIA FCC BANS INDECENT' SHOWS BETWEEN 6 AM AND 8 PM WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION SAID IT WILL PROHIBIT THE BROADCAST OF INDECENT PROGRAMMING BETWEEN 6 AM AND 8 PM EVEN THOUGH A FEDERAL APPEALS COURT HAS FOUND LONGER BANS UNCONSTITUTIONAL THE COURT THIS WEEK STRUCK DOWN A BAN THAT COVERED PROGRAMMING FROM 6 AM TO MIDNIGHT LAST YEAR IT KILLED A BAN THAT SPANNED 24 HOURS IN BOTH CASES THE COURT SAID THE BANS WERE TOO BROAD AND INFRINGED ON THE FIRST AMENDMENT RIGHTS OF ADULTS THE COURT HASN'T RULED ON THE 6 AMTO8 PM BAN THE COURT RULING ALTHOUGH MAINLY AIMED AT SEXUALLY EXPLICIT BROADCASTS RAISES QUESTIONS ABOUT THE CONSTITUTIONALITY OF PENDING LEGISLATION THAT WOULD RESTRICT BROADCAST OF VIOLENT PROGRAMS DURING HOURS WHEN CHILDREN MAKE UP A MAJORITY OF THE VIEWING AUDIENCE ATTORNEY GENERAL JANET RENO TESTIFIED LAST MONTH THAT SUCH LEGISLATION WOULD PASS ALL CONSTITUTIONAL TESTS AND FCC ACTING CHAIRMAN JAMES QUELLO HAS PLEDGED TO MAKE SURE IT STILL WOULD WE INTEND TO WORK CLOSELY WITH CONGRESS AND WITH INTERESTED PARTIES TO MAKE SURE THAT PROPOSED ANTIVIOLENCE LEGISLATION WILL PASS CONSTITUTIONAL MUSTER IN THE COURTS HE SAID 9311260120 931117 REVIEW & OUTLOOK EDITORIAL ALLIANCE AGAINST PROGRESS THE NORTH AMERICAN FREE TRADE AGREEMENT HAS BEEN WINNING CONVERTS BY THE HOUR AND NOW LOOKS TO HAVE A GOOD CHANCE OF PASSING THIS WOULD BE WELCOME FOR MANY REASONS NOT LEAST BECAUSE IT WOULD DIMINISH THE VERY STRANGE BEDFELLOWS WHO HAVE WORKED AGAINST THE FREE TRADE PACT AS WITH THE VOTE ON THE GULF WAR NAFTA HAS HELPED TO SORT OUT ALLEGIANCES FORCING MEMBERS OF CONGRESS AND POLITICAL INTERESTS TO SHOW THEIR TRUE PHILOSOPHIES WE THEREFORE THINK IT IS APPROPRIATE TO TAKE NOTE OF THOSE WHO COMMITTED THEIR CREDIBILITY TO POLITICAL POSITIONS INTENDED TO SABOTAGE THIS HISTORIC OPENING TO OUR SOUTHERN NEIGHBORS AND TO FREER MARKETS TO ADAPT A PHRASE WE HOPE AMERICANS REMEMBER WELL BEYOND NOVEMBER ON ANY SUCH LIST ROSS PEROT WOULD HAVE TO RANK CLOSE TO THE TOP THOUGH HE SUPPORTED NAFTA AS RECENTLY AS EARLY 1992 HE CHANGED HIS MIND WHEN HE THOUGHT HE SAW THE POLITICAL OPPORTUNITY BUT PROTECTIONISM HAS PROVEN TO BE THE SAME SIREN SONG FOR THE TEXAN AS IT HAS BEEN FOR OTHER MODERN AMERICAN POLITICIANS MR PEROT CAN ADD HIS NAME TO THE ROLL THAT INCLUDES JOHN CONNALLY IN 1980 WALTER MONDALE IN 1984 DICK HYUNDAI GEPHARDT IN 1988 AND BOB KERREY OF HOCKEY NET FAME IN NEW HAMPSHIRE IN 1992 THEN THERE IS THE NEW STRAIN OF NATIVISM AND PROTECTIONISM THAT IS AFFLICTING SOME ON THE RIGHT LED BY KEVIN PHILLIPS AND PAT BUCHANAN MR PHILLIPS HAS BEEN PREDICTING A POPULIST UPRISING OVER TRADE SINCE AT LEAST 1985 YET IT NEVER SEEMS TO OCCUR MR BUCHANAN HAS ABANDONED HIS FORMER SUPPORT FOR FREE TRADE AND NOW PREACHES A PROTECTIONISM HE CALLS A CONSERVATISM OF THE HEART IT SEEMS A SMALL HEART HOWEVER BECAUSE WHILE IT INCLUDES CANADIANS IT EXCLUDES MEXICANS AND SIMILAR PEOPLE SOUTH OF THE BORDER A NAFTA VICTORY ALSO UNDERMINES THE IDEOLOGY OF MERCANTILISM NOW TRYING TO MAKE A COMEBACK ON THE RIGHT ONE OF ITS STRATEGISTS IS THE WRITER EDWARD LUTTWAK WHOM MR BUCHANAN NOW CITES APPROVINGLY MR LUTTWAK WANTS TO HARNESS STATE POWER TO HELP CORPORATE INTERESTS IN THE NAME OF NATIONALISM WHICH SOUNDS LIKE WHAT WAS TRIED ONCE IN ITALY AND LET US NOT FORGET ROGER MILLIKEN THE TEXTILE BARON WHO BANKROLLED ANTINAFTA FORCES BUT IMPORTS JAPANESE LOOMS FOR HIS COMPANY PEROT COAUTHOR PAT CHOATE WHO RECEIVES MR MILLIKEN'S MONEY AND KEVIN KEARNS OF THE US BUSINESS & INDUSTRIAL COUNCIL ANOTHER CORPORATIST LOBBY THESE FOLKS CONSTITUTE THE PHILLIPSBUCHANAN POPULISTS OVER ON THE LEFT RALPH NADER HAS WRECKED WHAT REMAINS OF HIS PROCONSUMER REPUTATION NAFTA CUTS TAXES TARIFFS AT THE BORDER AND THUS LOWERS PRICES SOMETHING CONSUMERISTS USED TO FAVOR MR NADER'S MOVEMENT IS SEEN AS AN EXERCISE IN USING STATE POWER TO LIMIT CONSUMER CHOICE THE SAME MAY BE SAID OF THE ENVIRONMENTAL LOBBIES OPPOSING NAFTA ESPECIALLY THE SIERRA CLUB BY DISMISSING EVEN NAFTA'S MANY ENVIRONMENTAL PROTECTIONS THE SIERRA CLUB POSITIONS ITSELF AGAINST RISING THIRD WORLD LIVING STANDARDS IT LOOKS MORE THAN EVER LIKE A ZEROGROWTH LOBBY FOR THE ALREADY AFFLUENT SPECIAL MENTION MUST BE MADE OF RICHARD GEPHARDT THE HOUSE MAJORITY LEADER WHO OPPOSES NAFTA EVEN THOUGH PRESIDENT CLINTON NEGOTIATED THE SIDE AGREEMENTS MAINLY TO GET HIS VOTE THE PAROCHIALISM REFLECTED IN MR GEPHARDT'S ANTINAFTA STANCE SUGGESTS THAT HE SIMPLY IS NOT GOING TO DEVELOP THE GLOBAL VISION NEEDED TO REPRESENT THE NATIONAL INTEREST AS PRESIDENT WITH EVEN LIBERAL DEMOCRATS FROM TEXAS CALIFORNIA AND MASSACHUSSETS LINED UP FOR NAFTA THE GEPHARDT PERFORMANCE SEEMS SIGNIFICANTLY WRONGHEADED IT'S ALSO HARD TO BELIEVE THAT NEW JERSEY'S BOB TORRICELLI HAS COME OUT AGAINST NAFTA EVEN AS HE CHAIRS A HOUSE SUBCOMMITTEE ON THE WESTERN HEMISPHERE HIS CHAIRMANSHIP NOW SEEMS PARADOXICAL AND REP HENRY WAXMAN SNIFFS AT NAFTA FROM THE SINECURE OF BEVERLY HILLS WHILE HISPANIC DEMOCRATS REPRESENTING LESS TONY BUT PERHAPS MORE UPWARDLY MOBILE NEIGHBORHOODS COMMIT TO EXPANDED TRADE A SHIFT IN THE NATION'S POLITICS IS ALSO EVIDENT HERE LANE KIRKLAND AND BIG LABOR ARE UNDOUBTEDLY NAFTA'S MOST SINCERE CRITICS SOME UNION JOBS WILL NO DOUBT BE LOST JOBS THEY ARE BOUND TO DEFEND THOUGH WE THINK THOSE JOBS WOULD EVENTUALLY GO EVEN WITHOUT NAFTA WE WISH LABOR UNDERSTOOD BETTER THAT ITS OWN FUTURE IS JEOPARDIZED BY PROTECTIONISM AS THE FATES OF THE US STEEL AND AUTO UNIONS SHOULD MAKE CLEAR IF IT TURNS OUT THAT LABOR CAN'T DEFEAT NAFTA DESPITE HUGE DEMOCRATIC MAJORITIES ON CAPITOL HILL IT MAY BE TIME FOR IT TO RETHINK ITS POLITICAL STRATEGY SHOULD NAFTA PASS TODAY IT WILL MEAN THAT MOST AMERICANS HAVE REJECTED WHAT IS FUNDAMENTALLY AN ALLIANCE AGAINST PROGRESS AMONG SOME ON THE RIGHT AND ON THE LEFT THAT WOULD BE VERY GOOD NEWS INDEED FOR THE COUNTRY'S MOVEMENT TOWARD THE ECONOMY OF THE NEXT CENTURY SEE RELATED LETTER LETTERS TO THE EDITOR ECONOMIC NATIONALIST IS A TITLE I DISCLAIM WSJ NOV 26 1993 9311170155 YY93 MM11 9311260119 931126 THE BUSINESS OF LAW TYSON SUES CAPITAL CITIES ON USE OF HIDDEN CAMERAS FAYETTEVILLE ARK TYSON FOODS INC SUED CAPITAL CITIES/ABC INC ASKING A STATE COURT TO BAR 20/20 FROM SNEAKING HIDDEN CAMERAS INTO TYSON'S POULTRY PROCESSING PLANTS THE SPRINGDALE ARK COMPANY SAID IT LEARNED THAT A PRODUCER FOR THE NEWS MAGAZINE SHOW HAD CONTACTED FEDERAL MEAT INSPECTORS AND ASKED THEM TO WEAR HIDDEN CAMERAS INTO TYSON FACILITIES THE SUIT WAS FILED TUESDAY AN ABC NEWS SPOKESWOMAN REFUSED TO COMMENT ON THE SUIT OR TO CONFIRM THAT 20/20 IS WORKING ON A STORY ABOUT TYSON WE NEVER COMMENT ON STORIES THAT WE MAY OR MAY NOT DO SHE SAID CLAIMING TYSON HAS A HISTORY OF BEING VERY OPEN WITH THE MEDIA A SPOKESMAN FOR THE CHICKEN PROCESSOR SAID IT ROUTINELY ALLOWS REPORTERS INTO ITS PLANTS UNDER CONTROLLED CIRCUMSTANCES WHERE PROPRIETARY INFORMATION WAS PROTECTED WE HAVE EVEN ALLOWED FILMING TO TAKE PLACE HE SAID BUT WE SIMPLY CAN'T TOLERATE THE TRESPASS OF OUR PRIVATE PROPERTY THROUGH THE USE OF HIDDEN CAMERAS HE ADDED 9311260118 931126 BANK IN HONG KONG TO SELL 10YEAR NOTES HONG KONG HONGKONG & SHANGHAI BANKING CORP WILL SELL THREE BILLION HONG KONG DOLLARS US3884 MILLION OF 10YEAR SUBORDINATED NOTES REFLECTING THE BANKING INDUSTRY'S THIRST FOR HONG KONG DOLLARS WITH WHICH TO SATISFY STRONG DEMAND FOR LOANS THE NOTES WILL BE THE FIRST THAT HONGKONG BANK HAS ISSUED SINCE IT SOLD US12 BILLION OF PERPETUAL FLOATINGRATE NOTES IN 1986 SLOW DEPOSIT GROWTH AT BANKS IN HONG KONG HAS LEFT MANY OF THE TERRITORY'S FINANCIAL INSTITUTIONS SHORT OF HONG KONG DOLLARS TO LEND WHILE HONGKONG BANK REMAINS A NET LENDER IN THE INTERBANK MARKET ANALYSTS SAY IT IS ACTING TO ENSURE THAT IT WILL HAVE AMPLE HONG KONG DOLLARDENOMINATED LIABILITIES AGAINST WHICH TO MAKE LOANS IN YEARS TO COME THE NOTES WILL PAY INTEREST QUARTERLY AT A RATE EQUAL TO THE THREEMONTH HONG KONG INTERBANK OFFERED RATE OR HIBOR PLUS 025 PERCENTAGE POINT HIBOR THE RATE AT WHICH BANKS HERE LEND TO ONE ANOTHER CURRENTLY STANDS AT AROUND 3625 FOR THREEMONTH FUNDS BUT THE NOTES ARE COLLARED MEANING THAT HOLDERS ARE GUARANTEED A MINIMUM ANNUAL INTEREST RATE OF 7 AND WON'T EARN MORE THAN 9 EVEN IF INTEREST RATES RISE SHARPLY THE ISSUE HAS BEEN UNDERWRITTEN BY WARDLEY LTD A SUBSIDIARY OF HONGKONG BANK AN APPLICATION IS BEING MADE TO LIST THE NOTES ON THE HONG KONG STOCK EXCHANGE 9311260117 931126 INTERNATIONAL SHARES OF EURO DISNEY SCA REBOUND AFTER MELTDOWN PARIS THE STOCK OF EURO DISNEY SCA REBOUNDED AFTER SUSTAINING A MELTDOWN EARLIER IN THE WEEK THAT UNDERSCORED THE EXTENT OF MARKET PESSIMISM TOWARD THE COMPANY AS IT STRUGGLES TO COBBLE TOGETHER A VIABLE RESCUE PACKAGE WITH BANKS AND ITS US PARENT WALT DISNEY CO ON WEDNESDAY EURO DISNEY STOCK FELL 17 BUT YESTERDAY IT SPRANG BACK TO 294 FRANCS 498 UP 81 ON A WAVE OF SHORTCOVERING TRADING AGAIN WAS VERY VOLATILE THE UNRAVELING BEGAN EARLIER THIS MONTH WHEN EURO DISNEY REPORTED A LOSS OF 53 BILLION FRANCS FOR THE YEAR ENDED SEPT 30 SENDING ITS SHARES REELING MORE THAN 15 IN A WEEK MARKET WATCHERS SAID UNSOURCED ARTICLES IN THE BRITISH PRESS THAT WALT DISNEY IS ATTEMPTING TO STRONGARM BANKS BY THREATENING TO PULL OUT OF EURO DISNEY PROMPTED HEAVY SELLING COMPOUNDING THE STOCK'S WOES WAS AN EXODUS FROM EURO DISNEY'S CONVERTIBLE BONDS AS HOLDERSFEARING THE COMPANY MAY DEFAULT ON DEBTOPTED TO CUT LOSSES BY EXERCISING THEM FOR SHARES AND SELLING THEM OBSERVERS SAID THE MELTDOWN VIRTUALLY RULES OUT THE POSSIBILITY EURO DISNEY WILL ATTEMPT TO RAISE CASH THROUGH THE ISSUE OF NEW SHARES ANALYSTS SAID 9311260116 931126 BUSINESS BRIEF AMERICAN STOCK EXCHANGE RECORD VOLUME HELPED NET GROW SIXFOLD IN 3RD PERIOD THE AMERICAN STOCK EXCHANGE SAID RECORD TRADING VOLUME AND A SURGE IN NEW LISTINGS HELPED THIRDQUARTER NET INCOME GROW SIXFOLD AMEX SAID NET IN THE QUARTER ROSE TO 2 MILLION FROM 293000 IN THE YEAREARLIER PERIOD REVENUE ROSE 21 TO 331 MILLION FROM 274 MILLION EQUITY VOLUME AVERAGED 189 MILLION SHARES DAILY THE HIGHEST QUARTERLY LEVEL IN AMEX HISTORY NEW LISTINGS FOR THE QUARTER ROSE TO 37 COMPARED WITH 15 A YEAR AGO 9311260115 931126 POLITICS & POLICY LAWSUIT AGAINST SEARS CLAIMS DISCRIMINATION IN SEVERANCE PROGRAM CHICAGO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION FILED A LAWSUIT AGAINST SEARS ROEBUCK & CO ALLEGING IT VIOLATED FEDERAL AGEDISCRIMINATION LAWS IN CONNECTION WITH A JOBSEVERANCE PROGRAM IN THE SUIT FILED IN FEDERAL DISTRICT COURT IN CHICAGO THE FEDERAL COMMISSION CLAIMS THE RETAILER VIOLATED THE AGE DISCRIMINATION IN EMPLOYMENT ACT IN A SEVERANCE PLAN OFFERED LAST YEAR TO SOME EMPLOYEES A SEARS SPOKESMAN SAID OFFICIALS HADN'T YET SEEN THE SUIT HOWEVER HE SAID IT STEMS FROM A CHANGE MADE LAST YEAR IN THE COMPENSATION PLAN FOR THE COMMISSIONED SALES FORCE IN THE COMPANY'S APPLIANCE AND FURNITURE DEPARTMENTS A CHANGE THAT REDUCED COMPENSATION SEARS OFFERED EMPLOYEES THE OPTION OF ACCEPTING A SEVERANCE OFFER OR STAYING WITH THE COMPANY UNDER THE NEW COMPENSATION PLAN THE EEOC COMPLAINT ALLEGES THAT SEARS VIOLATED THE LAW BY OBTAINING FROM EMPLOYEES WHO ACCEPTED THE PACKAGE WAIVERS OF RIGHTS TO SUE THE COMPANY UNDER THE AGEDISCRIMINATION LAW THE EEOC IS SEEKING TO INVALIDATE THE WAIVERS AND IS SEEKING DAMAGES FOR EMPLOYEES WHO DECLINED THE SEVERANCE PLAN SEARS SAID IT COULDN'T DETERMINE HOW MANY PEOPLE WERE INVOLVED IN THE ACTION 9311260114 931126 ALBERTA NATURAL GAS TRANS MOUNTAIN SEEK PIPELINE EXPANSIONS CALGARY ALBERTA CANADA'S NATIONAL ENERGY BOARD SAID IT RECEIVED TWO PIPELINEEXPANSION PROPOSALS FROM WESTERN CANADIAN COMPANIES THE BOARD SAID ALBERTA NATURAL GAS CO CALGARY APPLIED FOR A FURTHER EXPANSION OF ITS GAS PIPELINE SYSTEM IN SOUTHEASTERN BRITISH COLUMBIA THE BOARD SAID THE CAPITAL COST OF THE PROJECT IS ESTIMATED AT 517 MILLION CANADIAN DOLLARS US39 MILLION ALBERTA NATURAL WHICH IS 499OWNED BY TRANSCANADA PIPELINES LTD CALGARY RECENTLY EXPANDED ITS BRITISH COLUMBIA PIPELINE SYSTEM TO ACCOMMODATE A 900MILLIONCUBICFOOTADAY CAPACITY EXPANSION OF THE CONNECTING PACIFIC GAS TRANSMISSION CO GAS PIPELINE SYSTEM IN THE WESTERN US THIS EXPANSION WENT INTO SERVICE NOV 1 AN ALBERTA NATURAL SPOKESMAN SAID THE COMPANY HAS RECEIVED REQUESTS FOR A FURTHER 300 MILLION CUBIC FEET A DAY OF NATURALGAS TRANSMISSION CAPACITY IN CONJUNCTION WITH CORRESPONDING REQUESTS FOR A FUTHER EXPANSION OF THE PACIFIC GAS SYSTEM THE NATIONAL ENERGY BOARD SAID IT ALSO RECEIVED A REQUEST FROM TRANS MOUNTAIN PIPE LINE CO VANCOUVER BRITISH COLUMBIA TO EXPAND ITS OIL AND LIQUIDS PIPELINE FROM ALBERTA TO BRITISH COLUMBIA AND WASHINGTON STATE TRANS MOUNTAIN WHICH IS 667OWNED BY VANCOUVER NATURALGAS UTILITY BC GAS INC ESTIMATED THAT ITS PROJECT WILL COST C275 MILLION THE BOARD SAID 9311260113 931126 INTERNATIONAL FRENCH CONSUMPTION SLUMPS PARIS FRENCH HOUSEHOLD CONSUMPTION OF MANUFACTURED GOODS SLUMPED 12 IN OCTOBER FROM SEPTEMBER THE NATIONAL STATISTICS INSTITUTE REPORTED EXCLUDING THE AUTOMOBILE AND PHARMACEUTICAL SECTORS HOUSEHOLD DEMAND SHOWED A DROP OF 24 THE STATERUN INSTITUTE SAID OCTOBER'S OVERALL RESULT FOLLOWED A 08 RISE IN SEPTEMBER AND WAS WELL BELOW ANALYSTS' PROJECTIONS OF A 05 DECLINE THE INSTITUTE SAID PURCHASES OF TEXTILES AND LEATHER GOODS WERE TO A LARGE DEGREE RESPONSIBLE FOR THE DROP IN THE OVERALL INDEX CONSUMPTION OF CONSUMER DURABLES FELL 17 IN OCTOBER CORRECTING AN ABNORMALLY STRONG 27 RISE IN SEPTEMBER 9311260112 931126 AIRLINES SEEK CLINTON'S HELP IN AIRPORT FIGHT FEE BATTLE IN LOS ANGELES SPURS INTERVENTION CALL AMR ACTION IS CITED BY DANIEL PEARL AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL STILL SMARTING FROM PRESIDENT CLINTON'S INTERVENTION IN THE AMERICAN AIRLINES STRIKE MAJOR US AIRLINES HAVE ASKED THE WHITE HOUSE TO TAKE THEIR SIDE IN A LANDINGFEE DISPUTE WITH LOS ANGELES BUT CLINTON ADMINISTRATION OFFICIALS SAID THEY WILL CONTINUE TO TRY TO BROKER A COMPROMISE BETWEEN THE AIRLINES AND THE CITY WHICH HAS THREATENED TO SHUT OFF LOS ANGELES INTERNATIONAL AIRPORT TO CARRIERS THAT DON'T PAY ITS NEW LANDING FEE BY DEC 4 THE VIEW HERE IS STILL THAT THIS IS SOMETHING THAT OUGHT TO BE RESOLVED BY THE PARTIES SAID AN AIDE TO TRANSPORTATION SECRETARY FEDERICO PENA WE'VE BEEN WORKING AGGRESSIVELY TO MAKE SURE THAT HAPPENS THE CITY MANDATED THE HIGHER FEES LAST SUMMER RAISING THE COST OF A TYPICAL LANDING OF A BOEING 747 JUMBO JET TO 900 FROM 300 AIRLINES FILED A LAWSUIT TO BLOCK THE CITY'S ACTION BUT COURTS HAVE BACKED THE FEE INCREASES UNTIL THE LAWSUIT IS RESOLVED A HEARING HAS BEEN SCHEDULED FOR DEC 6 THE CARRIERS HAVE BALKED AT PAYING THE NEW FEE ON A TEMPORARY BASIS SAYING THAT WOULD LEND CREDIBILITY TO THE CITY'S CLAIM THAT IT NEEDS THE HIGHER FEES TO RUN THE AIRPORT LOS ANGELES IN TURN HAS BEEN RELUCTANT TO ACCEPT A COMPROMISE THAT WOULD DENY USE OF THE FUNDS UNTIL THE COURT MAKES ITS RULING ON WEDNESDAY THE AIR TRANSPORT ASSOCIATION AN AIRLINE TRADE GROUP INVOLVED IN THE SUIT FILED A COMPLAINT ASKING THE TRANSPORTATION DEPARTMENT TO ISSUE A CEASE AND DESIST ORDER AGAINST THE AIRPORT CLOSING OFF THE AIRPORT WOULD VIOLATE FEDERAL AVIATION LAWS THE ASSOCIATION SAID A SPOKESMAN FOR LOS ANGELES MAYOR RICHARD RIORDAN SAID THAT AS OF RIGHT NOW THE CITY IS CONCENTRATED ON ONLY ONE PURPOSE WHICH IS TO IMPOSE THE HIGHER FEES AND BLOCK TAKEOFFS OF CARRIERS THAT DON'T PAY UP IN A STATEMENT THIS WEEK JAMES LANDRY PRESIDENT OF THE AIR TRANSPORT ASSOCIATION ALLUDED TO THE AMERICAN AIRLINES SETTLEMENT AND SAID THE LOS ANGELES ULTIMATUM IS A MUCH BIGGER THREAT TO THE NATION'S AVIATION SYSTEM HE ALSO SAID INTERVENTION IN THIS CASE IS MORE JUSTIFIABLE THAN IT WAS IN THE AMERICAN AIRLINES STRIKE BECAUSE A PUBLIC AGENCY THE AIRPORT IS INVOLVED AS PREVIOUSLY REPORTED SOME EXECUTIVES HAVE CRITICIZED THE DECISION BY PRESIDENT CLINTON TO INTERVENE IN THE STRIKE BY FLIGHT ATTENDANTS AT THE AMR CORP UNIT FOLLOWING THE UNUSUAL CAJOLING BY THE PRESIDENT THE AIRLINE AND THE ATTENDANTS AGREED TO ACCEPT ARBITRATION OF THEIR DIFFERENCES UAL CORP'S CHIEF EXECUTIVE OFFICER STEPHEN WOLF WAS QUOTED AS SAYING PRIVATELY THAT HE WAS VERY UNHAPPY WITH THE PRESIDENT'S STEPPING IN AND THAT THE ACTION WAS UNWARRANTED 9311260111 931126 HANSON UNIT AGREES WITH HOLDER TO REDEEM SOME OF FIRM'S NOTES NEW YORK QUANTUM CHEMICAL CORP NEWLY ACQUIRED BY HANSON PLC SAID IT REACHED A REDEMPTION AGREEMENT WITH A HOLDER OF 596 OR 1765 MILLION OF ITS 10 3/8 FIRST MORTGAGE NOTES THE COMPANY SAID THAT ON WEDNESDAY IT WILL PURCHASE THE PRINCIPAL AMOUNT AT 12275 PLUS ACCRUED AND UNPAID INTEREST THE HOLDER WASN'T IDENTIFIED THE COMPANY ALSO WILL MAKE AN OFFER ON OR BEFORE TUESDAY TO BUY THE REMAINING 10 3/8 NOTES FOR THE SAME TERMS THE REDEMPTION OFFERS ARE PART OF A PROGRAM TO RETIRE QUANTUM'S HIGHCOST DEBT THAT BEGAN WHEN HANSON ACQUIRED THE COMPANY SEPT 30 SO FAR 12 BILLION OF QUANTUM'S 25 BILLION IN DEBT HAS BEEN RETIRED THE PURCHASE AGREEMENT AND THE NEW OFFER IF FULLY ACCEPTED WOULD RETIRE AN ADDITIONAL 296 MILLION OF DEBT 9311260110 931126 INTERNATIONAL MEXICO'S SALINAS TO EXTEND REFORMS AFTER NAFTA VICTORY BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY PRESIDENT CARLOS SALINAS DE GORTARI SENT A NEW FOREIGN INVESTMENT BILL TO THE MEXICAN CONGRESS DESIGNED TO FURTHER FREEMARKET REFORMS AND STIMULATE THE ECONOMY PARTICULARLY IN THE TOURISM AND AIRLINE SECTORS THE MEASURE WILL SOLIDIFY MR SALINAS'S VICTORY WITH THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH CLEARED ITS LAST LEGISLATIVE HURDLE WITH MEXICAN SENATE PASSAGE EARLIER THIS WEEK THE BILL'S APPROVAL IS ASSURED SINCE MR SALINAS'S RULING INSTITUTIONAL REVOLUTIONARY PARTY ENJOYS AN OVERPOWERING MAJORITY IN BOTH HOUSES OF THE MEXICAN CONGRESS IT COMES AS MEXICO REACHES A RECORD YEAR IN FOREIGN INVESTMENT MORE THAN 10 BILLION HAS FLOWED THIS YEAR INTO THIS DEVELOPING COUNTRY OF 85 MILLION PEOPLE SAID A COMMERCE MINISTRY UNDERSECRETARY ABOUT HALF THE FOREIGN INVESTMENT HAS GONE INTO THE MEXICAN STOCK EXCHANGE THE UNDERSECRETARY SAID UNDER THE PROPOSED CHANGES FOREIGNERS ALONG MEXICO'S COASTLINE AND BORDER WILL BE ALLOWED TO DIRECTLY INVEST IN INDUSTRIAL COMMERCIAL HOTEL AND TIMESHARE DEVELOPMENTS AS PROPERTY OWNERS THOSE INVESTORS HOWEVER MUST ESTABLISH MEXICAN COMPANIES UNTIL NOW FOREIGNERS WERE ONLY ALLOWED TO INVEST THROUGH BANK TRUSTS IN AREAS 50 KILOMETERS OR 31 MILES FROM THE SHORELINE OR 100 KILOMETERS OR 62 MILES FROM THE BORDER THE MOVE IS EXPECTED TO OPEN UP BANKFINANCING IN THE TOURISM SECTOR AN AREA OF SLUGGISH GROWTH AND A SOURCE OF LEGAL GRIPES FROM SMALL FOREIGNINVESTORS IN TIMESHARE AND CONDOMINIUM PROJECTS MANY US BANKS WILL NOT GRANT FINANCING IF YOU ARE NOT THE TITLEHOLDER OF THE LAND SAID A SENIOR GOVERNMENT OFFICIAL AMONG THE PROPOSED CHANGES MEXICO'S TROUBLED AIRTRANSPORTATION SECTOR WILL ALSO BE OPENED TO 25 DIRECT FOREIGN INVESTMENT FOR THE FIRST TIME SECONDARY PETROCHEMICALS ALSO WILL OPEN TO FULL 100 DIRECT FOREIGN INVESTMENT FROM 40 FOREIGN INVESTMENT MINING AS WELL WILL OPEN TO FULL 100 DIRECT FOREIGN INVESTMENT LOOSENING THE PREVIOUS CIRCUITOUS RULES THAT ALLOWED 100 INVESTMENT BUT REQUIRED FOREIGNERS TO INVEST THROUGH BANK TRUSTS FOR RESTRICTED PERIODS OF TIME IN MANY OTHER CASES THE PROPOSED NEW FOREIGN INVESTMENT LAW WOULD ELEVATE PREVIOUS REGULATIONS TO THE STATUS OF CONGRESSIONALLY APPROVED LAW IN OTHER CASES THE CHANGES WILL MAKE THE NEW FOREIGN INVESTMENT LAW CONSISTENT WITH NAFTA THIS LAW'S IMPORTANCE IS THAT IT GIVES A FRAMEWORK OF SECURITY AND CLARITY TO THE FOREIGN INVESTOR SAID A SENIOR GOVERNMENT OFFICIAL IT WILL REPEAL MEXICO'S 1973 FOREIGN INVESTMENT LAW KNOWN BY ITS PROTECTIONIST TITLE AS THE LAW TO PROMOTE MEXICAN INVESTMENT AND REGULATE FOREIGN INVESTMENT 9311260109 931126 TATE & LYLE REPORTS 17 RISE IN EARNINGS FOR THE FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL THE COMPANY SAID THE OUTLOOK FOR THE CURRENT FISCAL YEAR REMAINS ENCOURAGING WITH RESULTS EXPECTED TO BENEFIT IN PARTICULAR FROM INCREASED PRODUCTIVITY AND FROM IMPROVED CONDITIONS IN CERTAIN MARKETS TATE & LYLE'S PROFIT WAS UP FROM 1895 MILLION THE PREVIOUS YEAR SALES ROSE 13 TO 382 BILLION FROM 337 BILLION MARKET EXPECTATIONS WERE FOR A PROFIT OF 218 MILLION THE COMPANY RAISED ITS DIVIDEND AS EXPECTED TO 13 PENCE 19 CENTS A SHARE FROM 12 PENCE CHAIRMAN NEIL SHAW SAID THE COMPANY'S INCREASINGLY GLOBAL SPREAD ENABLED US TO DELIVER STRONG CASH FLOWS DESPITE TOUGH MARKET CONDITIONS IN THE US AND IN EUROPEAN STARCH OPERATIONS FOUNDATIONS FOR CONTINUED PROFIT GROWTH WERE LAID MR SHAW SAID THAT A RECORD SUGARBEET CROP IN THE US LED TO AN OVERSUPPLIED MARKET AND PRESSURE ON MARGINS BUT THAT CASH FLOW AT DOMINO SUGAR WAS STRONG BECAUSE OF GOOD WORKINGCAPITAL CONTROL AT WESTERN SUGAR STARTUP DIFFICULTIES IN ITS NEW MOLASSES DESUGARIZATION PLANT WERE LARGELY OVERCOME AND THE PROJECT WHICH LOST 7 MILLION IN THE YEAR IS NOW CONTRIBUTING TO PROFITABILITY ON THE DOWNSIDE MR SHAW NOTED THAT UNDERUTILIZATION OF INDUSTRY CAPACITY HAS HURT MARGINS AT ITS STALEY SWEETENER BUSINESS RESTRICTING PROFITS A GLUT OF POTATO STARCH DEPRESSED PRICES IN EUROPE HE SAID 9311260108 931105 LETTERS TO THE EDITOR RACIST REALITIES OF RAMPANT CRIME THE RATE OF MORTALITY AMONG YOUNG BLACKS ASCRIBED TO RACISM BY SOCIOLOGISTS GOES BACK IN TIME MUCH FURTHER THAN DOROTHY RABINOWITZ IMPLIES IN HER OCT 4 LEISURE & ARTS ESSAY A NEW FRANKNESS ABOUT RACE AND CRIME THE RACIST REALITY CAME WHEN DECENT BLACK PEOPLE COMPLAINED TO THE WHITE ESTABLISHMENT THAT DRUGS AND CRIME WERE TAKING OVER OUR NEIGHBORHOODS THE CRIMINALS RECEIVED LIGHT SENTENCES AND SOMETIMES NO SENTENCES FOR CRIMES COMMITTED AGAINST OTHER BLACKS AS WITH EVERYTHING ELSE THAT GOES UNCHECKED IT SPREAD TO WHITE NEIGHBORHOODS NOW IT MAKES THE NEWS AND MS RABINOWITZ WANTS TO SPEAK FRANKLY ABOUT RACE AND CRIME WHERE WAS SHE AND OTHERS LIKE HER WHEN MY PARENTS AND OTHER BLACK PEOPLE CRIED OUT FOR HELP UNTIL WE LEARN IN THIS COUNTRY THAT OUR FATE IS INTERTWINED AND THAT REGARDLESS OF RACE WHAT AFFECTS ANY PARTICULAR GROUP WILL EVENTUALLY AFFECT US ALL WE ARE DOOMED TO A KIND OF LIFE WHERE CRIME RUNS RAMPANT IT IS TIME FOR ALL LAWABIDING CITIZENS TO BAND TOGETHER AND SAVE OUR NEIGHBORHOODS FROM CRIMINALS REGARDLESS OF OUR RACE SEE RELATED LETTER LETTERS TO THE EDITOR CONSERVATIVES HEARD THE CRY LONG AGO WSJ NOV 26 1993 9311050002 YY93 MM11 9311260107 931126 WHO'S NEWS CARTER HAWLEY HALE STORES INC CARTER HAWLEY HALE STORES INC LOS ANGELES ROBERT J LAMBERT 40 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT HUMAN RESOURCES OF THIS DEPARTMENTSTORE OPERATOR MR LAMBERT FORMERLY CHIEF HUMAN RESOURCES OFFICER AT STRIDE RITE CORP SUCCEEDS ROBERT DOURIAN WHO LEFT CARTER HAWLEY IN MAY 9311260105 931126 INTERNATIONAL JAPAN'S BIG COMMERCIAL BANKS REPORT LOWER PROFITS DISCLOSE DEBT TROUBLES BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S BIGGEST COMMERCIAL BANKS REPORTED GENERALLY LOWER EARNINGS FOR THE SIX MONTHS ENDED SEPT 30 AND DISCLOSED MORE DEBT PROBLEMS THAT WILL HAMPER PERFORMANCE FOR SEVERAL YEARS THE EARNINGS DECLINE DURING THE APRILSEPTEMBER PERIOD THE FIRST HALF OF JAPAN'S FISCAL YEAR REFLECTED TOUGHER OPERATING RESULTS AMID JAPAN'S ECONOMIC DOWNTURN THE BANKS HAVE HAD LITTLE LENDING GROWTH FOR MONTHS AND ECONOMIC HARD TIMES HAVE MADE IT HARDER FOR BORROWERS TO MEET THEIR OBLIGATIONS THE DECLINE ALSO REFLECTED UNUSUALLY STRONG RESULTS A YEAR EARLIER WHEN THE COMMERCIAL OR CITY BANKS PROFITED FROM FALLING INTEREST RATES LOWER INTEREST RATES HELP BECAUSE BANKS GENERALLY REDUCE THEIR PAYMENTS ON DEPOSITS FASTER AND BY MORE THAN THEY REDUCE INTEREST CHARGES ON LOANS PROFITING ON A WIDER SPREAD BETWEEN THE TWO WE WERE LOOKING FOR THE EARNINGS TO BE DOWN FROM A YEAR EARLIER SAID DAVID ATKINSON FINANCIAL ANALYST AT GOLDMAN SACHS JAPAN CORP BAD LOANS CONTINUED TO STRAIN THE BANKS DECLARED NONPERFORMING LOANS TOTALLED 925 TRILLION YEN 8517 BILLION AN INCREASE OF 96 SINCE MARCH 31 THE END OF JAPAN'S PREVIOUS FISCAL YEAR THAT NUMBER DOESN'T INCLUDE RESTRUCTURED LOANS OR MANY TROUBLED LOANS THAT AREN'T PAYING INTEREST UNDER US ACCOUNTING STANDARDS MANY ANALYSTS SAY THE BAD LOAN TOTAL WOULD BE CLOSER TO 15 TRILLION YEN RESERVES AGAINST BAD LOANS ROSE JUST 55 TO 298 TRILLION YEN INDICATING THAT RESERVE INCREASES DIDN'T KEEP PACE WITH THE INCREASE IN BAD LOANS OVER THE PERIOD THE RISE OF BAD DEBTS AND THE INEVITABILITY OF INTEREST RATES RISING IN THE FUTURE MEANS TROUBLE FOR THE BANKS SAID ALICIA OGAWA ANALYST AT SALOMON BROTHERS ASIA INC THE BANK OF JAPAN CUT ITS KEY INTEREST RATE TO A POSTWAR LOW OF 175 IN SEPTEMBER TOO LATE TO SIGNIFICANTLY AFFECT PERFORMANCE OF THE CITY BANKS IN THE REPORTING PERIOD ANALYSTS LIKE MS OGAWA SAY THAT CUT IS LIKELY TO BE THE LAST RATE CUT FROM THE CENTRAL BANK THIS RATE CUT WILL LIKELY HELP THE BANKS IN THE CURRENT OPERATING PERIOD THOUGH DEPOSIT RATES AT THE BANKS ARE ALREADY SO LOW THAT IT'S HARD FOR THE BANKS TO CUT THEM FURTHER WITHOUT LOSING CUSTOMERS BORROWERS MEANWHILE ARE CLAMORING FOR LOWER INTEREST CHARGES THE CURRENT SET OF RESULTS SHOWS THE BANKS ARE BACK TO THEIR CORE OPERATING PROFITS SAID GOLDMAN SACH'S MR ATKINSON THE CITY BANKS SHOWED SIGNIFICANT IMPROVEMENTS IN THEIR INTERNATIONAL CREDITWORTHINESS A YEAR AGO MANY WERE CONCERNED THE BANKS WOULD HAVE TROUBLE MEETING AN INTERNATIONAL CAPITALADEQUACY RATIO OF AT LEAST 8 ON THURSDAY ALL 11 BANKS DECLARED RATIOS OF AT LEAST 9 AND BANK OF TOKYO LTD AND SANWA BANK LTD WERE OVER 10 EVEN SOME RELATIVELY BRIGHT SPOTS ARE CLOUDED HOWEVER FOR INSTANCE THE VALUE OF MOST OF THE BANKS' SECURITIES PORTFOLIOS WAS UP SHARPLY AT SEPT 30 REFLECTING INCREASED BOND PURCHASES PLUS REPURCHASES OF OLD STOCKHOLDINGS BANKS MAY SELL LONGHELD SHARES TO RECORD BIG PROFITS AGAINST LOAN LOSSES THEN REPURCHASE THE SHARES AT CURRENT MARKET PRICES IN ORDER TO HOLD ONTO THEIR CORE HOLDINGS BUT THOSE REPURCHASES ARE NOW A PROBLEM THE JAPANESE STOCK MARKET IS DOWN 14 SINCE SEPT 30 MEANING THE BANKS ARE NOW CARRYING BIG LOSSES ON THOSE STOCKS THEY SOLD AND BOUGHT BACK DAIICHI KANGYO BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 2053 BILLION YEN DOWN FROM 4635 BILLION YEN A YEAR EARLIER NET INCOME WAS 1620 BILLION YEN OR 519 YEN A SHARE DOWN FROM 2909 BILLION YEN OR 932 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 17 TO 1293 TRILLION YEN FROM 1559 TRILLION YEN SUMITOMO BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 6377 BILLION YEN DOWN FROM 8977 BILLION YEN A YEAR EARLIER NET INCOME WAS 3031 BILLION YEN OR 965 YEN A SHARE DOWN FROM 3784 BILLION YEN OR 1205 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 21 TO 1334 TRILLION YEN FROM 1688 TRILLION YEN SAKURA BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 3543 BILLION YEN DOWN FROM 5807 BILLION YEN A YEAR EARLIER NET INCOME WAS 1746 BILLION YEN OR 527 YEN A SHARE DOWN FROM 2803 BILLION YEN OR 846 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 16 TO 1376 TRILLION YEN FROM 1630 TRILLION YEN FUJI BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 3201 BILLION YEN UP FROM 2939 BILLION YEN A YEAR EARLIER NET INCOME WAS 2587 BILLION YEN OR 893 YEN A SHARE DOWN FROM 2601 BILLION YEN OR 898 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 11 TO 1338 TRILLION YEN FROM 1496 TRILLION YEN SANWA BANK SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 6737 BILLION YEN DOWN FROM 9103 BILLION YEN A YEAR EARLIER NET INCOME WAS 3991 BILLION YEN OR 1376 YEN A SHARE DOWN FROM 4025 BILLION YEN OR 1388 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 18 TO 132 TRILLION YEN FROM 160 TRILLION YEN MITSUBISHI BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 4677 BILLION YEN DOWN FROM 7304 BILLION YEN A YEAR EARLIER NET INCOME WAS 2686 BILLION YEN OR 933 YEN A SHARE DOWN FROM 3266 BILLION YEN OR 1136 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 51 TO 1422 TRILLION YEN FROM 1498 TRILLION YEN TOKAI BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 1227 BILLION YEN DOWN FROM 2838 BILLION YEN A YEAR EARLIER NET INCOME WAS 1142 BILLION YEN OR 563 YEN A SHARE DOWN FROM 1349 BILLION YEN OR 665 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL ABOUT 72 TO 90248 BILLION YEN FROM 97291 TRILLION YEN BANK OF TOKYO SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 4910 BILLION YEN UP FROM 3819 BILLION YEN A YEAR EARLIER NET INCOME WAS 3018 BILLION YEN OR 1497 YEN A SHARE UP FROM 2359 BILLION YEN OR 1172 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 20 TO 78234 BILLION YEN FROM 97228 BILLION YEN ASAHI BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 3827 BILLION YEN UP FROM 2872 BILLION YEN A YEAR EARLIER NET INCOME WAS 1014 BILLION YEN OR 437 YEN A SHARE DOWN FROM 1144 BILLION YEN OR 493 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 13 TO 68647 BILLION YEN FROM 79132 BILLION YEN DAIWA BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 1969 BILLION YEN UP FROM 1214 BILLION YEN A YEAR EARLIER NET INCOME WAS 855 BILLION YEN OR 566 YEN A SHARE DOWN FROM 1002 BILLION YEN OR 673 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 18 TO 45351 BILLION YEN FROM 54987 BILLION YEN HOKKAIDO TAKUSHOKU BANK LTD SAID UNCONSOLIDATED PRETAX PROFIT IN THE FIRST HALF WAS 819 BILLION YEN DOWN FROM 1035 BILLION YEN A YEAR EARLIER NET INCOME WAS 449 BILLION YEN OR 482 YEN A SHARE DOWN FROM 618 BILLION YEN OR 663 YEN A SHARE A YEAR EARLIER OPERATING REVENUE FELL 113 TO 24947 BILLION YEN FROM 28119 BILLION YEN 9311260103 931126 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS TRADE BARRIERS MAY BE COMING DOWN ALL OVER THE WORLD BUT FOR LAWYERS AT MANY BIG COMPANIES PROTECTIONISM CAN STILL BE FOUND JUST ACROSS THE STATE LINE DANIEL S HAPKE JR GENERAL COUNSEL OF GENERAL DYNAMICS CORP'S SPACE SYSTEMS DIVISION WAS TRANSFERRED LAST YEAR TO SAN DIEGO FROM THE COMPANY'S FALLS CHURCH VA BASE CALIFORNIA DIDN'T MUCH CARE THAT THE 47YEAROLD MR HAPKE HAD PRACTICED LAW FOR ALMOST HALF HIS LIFE AND WAS ALREADY LICENSED AS AN ATTORNEY IN TWO OTHER STATES HE HAD TO SIT FOR THE NOTORIOUSLY ARDUOUS STATE BAR EXAM IT WAS REALLY A NIGHTMARE SAYS THE AEROSPACE COMPANY EXECUTIVE FOR ABOUT THREE MONTHS MR HAPKE TOOK OFF ONE DAY A WEEK TO STUDY I COULDN'T DO A FULL AND ADEQUATE JOB DURING THAT PERIOD HE SAYS WORSE DURING THE NINE MONTHS HE WAITED FOR THE TEST DATE TO ROLL AROUND AND THEN GET THE NEWS HE HAD PASSED HIS FOURPERSON DEPARTMENT HAD TO BE RESHUFFLED I COULDN'T HAVE THE LEAD ROLE ON ANYTHING WHERE I WOULD HAVE TO HOLD MYSELF AS A CALIFORNIA PRACTITIONER HE SAYS STATE LAWS IMPOSING TOUGH ADMISSION REQUIREMENTS ON LAWYERS WERE OSTENSIBLY ENACTED TO BENEFIT CLIENTS BUT IN THE CASE OF MR HAPKE AND THOUSANDS OF OTHER INHOUSE LAWYERS CLIENTS SEEM TO BE THE ONLY ONES GETTING HURT AT THE ANNUAL MEETING THIS MONTH OF THE AMERICAN CORPORATE COUNSEL ASSOCIATION AN INHOUSE LAWYER TRADE GROUP A PANEL DISCUSSION ON INTERSTATE BARRIERS TO LEGAL PRACTICE DREW NEARLY 200 PEOPLE AND QUICKLY TURNED INTO A GRIPE SESSION I'M NOT GOING TO TAKE A BAR EXAM EVERY TIME MY COMPANY DECIDES TO OPEN UP A NEW SITE GROUSED ONE WOMAN IN THE AUDIENCE A PANELIST AT THE WASHINGTON MEETING AGREED ADDING I THINK IT'S ASTOUNDING THAT AGAINST THE BACKDROP OF NAFTA AND A SHRINKING WORLD THAT WE ARE WHERE WE ARE ON THIS ISSUE ALTHOUGH THE PROBLEM CONFRONTS ALL LAWYERS WHO MOVE OR TAKE ON MATTERS AWAY FROM HOME IT PARTICULARLY RANKLES INHOUSE ATTORNEYS SINCE THEY DON'T HOLD THEMSELVES OUT FOR SERVICE TO THE PUBLIC THE ONLY JUSTIFICATION THEY CAN SEE FOR THE RULES IS AN ANTICOMPETITIVE ONE THEY POINT TO THE FACT THAT SUNBELT STATES HISTORICALLY LEERY OF INVADING EAST COAST ATTORNEYS TEND TO HAVE THE TIGHTEST RESTRICTIONS THE RULES PUT A SPECIAL STRAIN ON LAWYERS FOR BIG CORPORATIONS THAT RUN INTO LEGAL PROBLEMS IN EVERY STATE AND AS COMPANIES STRIVE TO REDUCE THEIR LEGAL COSTS BY HANDLING MORE MATTERS INHOUSE THE RESTRICTIONS ARE BECOMING MORE ONEROUS NORMAN KRIVOSHA FORMER CHIEF JUSTICE OF NEBRASKA AND NOW GENERAL COUNSEL OF AMERITAS LIFE INSURANCE CORP IN LINCOLN HAS SPENT YEARS RAILING AGAINST THE CRAZYQUILT OF STATE ADMISSIONS RULES AS THE INCOMING CHAIR OF THE CORPORATE COUNSEL GROUP JUDGE KRIVOSHA A MEMBER OF THE BAR IN FIVE STATES SAYS HE'S GOING TO MAKE THE ISSUE A TOP PRIORITY HE ARGUES THAT THE WAY TO PROTECT THE PUBLIC IS THROUGH DISCIPLINING BAD LAWYERS NOT WITH ENTRY BARRIERS WHY NOT BE LIKE THE MEDICAL PROFESSION HE ASKS GIVE ONE NATIONAL EXAM AND THEN HAVE INDIVIDUAL STATES LICENSE ON THE BASIS OF CHARACTER AND FITNESS TO BE SURE STATE BAR LICENSING RULES ARE HONORED MOSTLY IN THE BREACH EVERY DAY CORPORATE LAWYERS HANDLE THOUSANDS OF INTERSTATE TRANSACTIONS AND THE QUESTION OF BAR MEMBERSHIP HARDLY EVER COMES UP AND WHEN LITIGATORS MUST APPEAR IN THE COURT OF A STATE WHERE THEY AREN'T LICENSED THEY CAN BE ADMITTED PRO HAC VICE OR FOR THIS OCCASION BUT THE PROCESS USUALLY MEANS PAYING A FEE AND MORE SIGNIFICANTLY HIRING ADDITIONAL LAWYERS FROM THE LOCAL AREA SOME LAWYERS ARGUE THAT'S TANTAMOUNT TO A TARIFF MANY STATES WAIVE THE BAREXAMINATION REQUIREMENT FOR ATTORNEYS WHO HAVE PRACTICED ELSEWHERE FOR A CERTAIN NUMBER OF YEARS AND A FEW STATES HAVE RECENTLY TRIED TO MAKE THINGS EASIER FOR INHOUSE LAWYERS THE FLORIDA SUPREME COURT IS CONSIDERING A RULE THAT ALLOWS COMPANY ATTORNEYS LICENSED ELSEWHERE TO WORK FOR THEIR EMPLOYER IN FLORIDA PROVIDED THEY INFORM THE OPPOSING PARTY THAT THEY AREN'T A MEMBER OF THE STATE BAR STILL IT'S HARD TO DEFEND A SYSTEM THAT ENDS UP MAKING SCOFFLAWS OUT OF SO MANY LAWYERS WHEN A PANELIST AT THE INHOUSE COUNSEL MEETING ASKED HOW MANY IN THE AUDIENCE REGULARLY PRACTICE IN STATES WHERE THEY AREN'T LICENSED ABOUT 100 PEOPLE SHEEPISHLY RAISED THEIR HANDS AND CHALLENGES DO ARISE PROSECUTORS AND BAR OFFICIALS IN CALIFORNIA ACTING ON TIPS FROM OPPOSING COUNSEL HAVE WARNED NUMEROUS ATTORNEYS THAT THEY ARE UNLAWFULLY PRACTICING THERE SAYS DIANE YU GENERAL COUNSEL OF THE STATE BAR THE EXAM AND OTHER LICENSING CRITERIA CAN BE JUSTIFIED SHE SAYS BECAUSE ETHICAL STANDARDS AND EDUCATIONAL REQUIREMENTS DIFFER FROM STATE TO STATE THE IDEA OF NATIONAL BAR ADMISSIONS ISN'T NEW BUT THERE HASN'T BEEN MUCH ORGANIZED SUPPORT UNTIL NOW IF IT'S SERIOUS ABOUT PURSUING THE FIGHT THE INHOUSE COUNSEL GROUP CAN EXPECT SOME ENTRENCHED RESISTANCE AFTER ALL LAWYERS WHO DON'T WORK FOR COMPANIES HAVE GOOD REASON TO WANT TO LIMIT THE NUMBER OF OUTOFSTATE COMPETITORS WHO CAN HORN IN ON THEIR TERRITORY FOR SOME LAWYERS IT'S A MATTER OF GREAT SIGNIFICANCE SAYS MICHAEL MCCHRYSTAL A PROFESSOR AT MARQUETTE UNIVERSITY LAW SCHOOL WHO STUDIES BAR ADMISSIONS AND MULTISTATE PRACTICE BUT FOR THE MAJORITY OF LAWYERS IT'S NOT A MATTER THAT AFFECTS THEIR PRACTICE AND THEIR FINANCIAL SELFINTEREST TENDS TO BE IN NOT CHANGING THE STATUS QUO 9311260102 931126 CANADIAN STEEL OUTPUT RISES OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 286329 METRIC TONS IN THE WEEK ENDED NOV 20 A 25 INCREASE FROM 279253 TONS THE PREVIOUS WEEK BUT A 15 DECLINE FROM 290571 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 220462 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 12689028 TONS A 38 INCREASE FROM 12221449 TONS A YEAR EARLIER 9311260101 931126 GAMMA INTERNATIONAL REPORTS WIDER LOSS FOR THE THIRD QUARTER BILLERICA MASS GAMMA INTERNATIONAL LTD REPORTED A WIDER THIRDQUARTER LOSS AND SAID IT IS TRYING TO SELL ITS ELECTRONIC BINGO AND KENO TECHNOLOGY OPERATIONS AND BECOME A CASINO OPERATOR GAMMA ALSO SAID ITS CHAIRMAN RICHARD D KIDNEY RESIGNED TO DEVOTE MORE TIME TO OTHER BUSINESS INTERESTS MR KIDNEY WHO WILL REMAIN A CONSULTANT HAD BEEN CHIEF EXECUTIVE OF THE COMPANY UNTIL THIS SUMMER HE COULDN'T BE REACHED TO COMMENT GAMMA REPORTED A THIRDQUARTER NET LOSS OF 41 MILLION OR 31 CENTS A SHARE WIDER THAN A LOSS OF 17 MILLION OR 24 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER'S RESULTS REFLECTED 17 MILLION IN CHARGES RELATED TO WRITEDOWNS OF THE VALUE OF CERTAIN FINANCING AGREEMENTS AND THE CREATIVE GAMES TECHNOLOGIES SUBSIDIARY AVERAGE SHARES OUTSTANDING INCREASED TO 139 MILLION FROM 73 MILLION REVENUE FELL 38 TO 43 MILLION FROM 45 MILLION GAMMA SAID MUCH OF THE LOSS WAS DUE TO SPENDING 12 MILLION ON DEVELOPING CASINO PLANS IT SAID IT IS AMONG SEVERAL GROUPS BIDDING TO PUT A RIVERBOAT CASINO IN KANSAS CITY MO AND A CASINO AND DEVELOPMENT PROJECT IN ST LOUIS IT ALSO SAID IT IS NEGOTIATING TO PROVIDE CONSULTING SERVICES TO AN AUSTRALIAN COMPANY CROWN CASINO LTD REGARDING A PLANNED CASINO IN MELBOURNE AUSTRALIA FOR THE NINE MONTHS GAMMA REPORTED A LOSS OF 148 MILLION OR 129 A SHARE COMPARED WITH A LOSS OF 41 MILLION OR 67 CENTS A SHARE REVENUE ROSE 13 TO 145 MILLION FROM 129 MILLION GAMMA'S SHARES CLOSED AT 2344 UP 17 OR 344 CENTS IN OVERTHECOUNTER TRADING WEDNESDAY 9311260100 931126 TECHNOLOGY MOST OF PHOENIX LASER BOARD WILL RESIGN UNDER LITIGATION PACT FREMONT CALIF PHOENIX LASER SYSTEMS INC SAID IT SETTLED LITIGATION WITH A GROUP OF HONG KONG INVESTORS UNDER WHICH MOST OF ITS BOARD WILL RESIGN IN RETURN FOR INTERIM FUNDING OF 1350000 THE COMPANY IS ATTEMPTING TO DEVELOP AN OPHTHALMIC LASER WORKSTATION THAT WOULD USE LASERS TO PERFORM SURGERY TO CORRECT FAULTY VISION AS WELL AS EYE DISORDERS THAT ARE UNTREATABLE OR ONLY PARTLY TREATABLE WITH CURRENT TECHNOLOGY BUT IT CHALKED UP LOSSES OF 79 MILLION IN 1991 AND 1992 AND HAS HAD TO REDUCE RESEARCH AND DEVELOPMENT ITS STOCK CLOSED AT 325 UNCHANGED IN AMERICAN STOCK EXCHANGE TRADING WEDNESDAY IN APRIL PHOENIX LASER SUED THE HONG KONG INVESTORS ALLEGING ONE OF THEM SUN SUN CHAN MISAPPROPRIATED 1350000 INTENDED TO FINANCE A JOINT VENTURE IN RETURN FOR THOSE FUNDS THE COMPANY SAID WEDNESDAY IT WILL DISMISS LAWSUITS AGAINST MR CHAN AND HIS WIFE IN DELAWARE SAN FRANCISCO AND HONG KONG MOREOVER ALL BUT ONE MEMBER OF PHOENIX LASER'S BOARD AGREED TO RESIGN FIVE MEN WERE NAMED WEDNESDAY TO REPLACE THEM THE COMPANY ALSO AGREED TO ISSUE AN AMENDED ANNUAL 1992 REPORT WITH THE SECURITIES AND EXCHANGE COMMISSION TO CORRECT TECHNICAL ERRORS IN THE ORIGINAL REPORT PAR CHADHA PHOENIX LASER'S CHAIRMAN SAID THE COMPANY WILL STILL REQUIRE SIGNIFICANT ADDITIONAL CAPITAL TO COMPLETE PRODUCT DEVELOPMENT HE WASN'T AVAILABLE FOR COMMENT ON WHY THE BOARD MEMBERS RESIGNED OR TO EXPLAIN THE NATURE OF THE TECHNICAL ERRORS IN THE COMPANY'S YEARLY REPORT 9311260099 931126 TREASURY DEPARTMENT MOVES RESPONSIBILITY FOR SAVINGS BONDS WASHINGTON THE TREASURY IS MOVING ITS SAVINGS BONDS DIVISION INTO THE BUREAU OF PUBLIC DEBT AND IS ELIMINATING SEVERAL POLITICAL APPOINTMENTS FROM THE US MINT THE RESTRUCTURING STEPS ARE AIMED AT REDUCING BUREAUCRACY AND IMPROVING SERVICE TREASURY SECRETARY LLOYD BENTSEN SAID INCORPORATING THE SAVINGS BONDS DIVISION INTO THE BUREAU OF PUBLIC DEBT WILL HELP TO IMPROVE THE MARKETING STRATEGY FOR BONDS MR BENTSEN SAID AT THE MINT THERE ARE NINE POLITICAL APPOINTMENTS THAT ARE CURRENTLY VACANT HE SAID IF CONGRESS APPROVES SOME OF THESE WILL BE ELIMINATED AND SOME WILL BE CONVERTED TO CAREER CIVIL SERVICE POSTS IT'S TIME PROFESSIONAL MANAGERS NOT POLITICAL APPOINTEES RUN PRODUCTION FACILITIES MR BENTSEN SAID MR BENTSEN ALSO SAID THAT IN THE FUTURE THE TREASURY EXPECTS TO RELY LESS ON PAYROLLDEDUCTION PURCHASES OF SAVINGS BONDS AND MORE ON OVERTHECOUNTER PURCHASES AT BANKS AND OTHER MARKETING AVENUES 9311260098 931126 WHO'S NEWS EXECUTIVE AT AT&T'S NCR UNIT RETIRES EARLY CITING SEX HARASSMENT CHARGES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A HIGHRANKING EXECUTIVE OF AMERICAN TELEPHONE & TELEGRAPH CO'S NCR CORP UNIT QUIT AMID SEXUALHARASSMENT CHARGES BY A FEMALE FORMER EMPLOYEE JOHN R POOLE 54 YEARS OLD A SENIOR VICE PRESIDENT IN CHARGE OF NCR'S COMPUTER BUSINESS IN THE AMERICAS SAID IN A STATEMENT RELEASED BY THE DAYTON OHIO SUBSIDIARY THAT HE WOULD TAKE EARLY RETIREMENT BECAUSE OF RECENT UNFOUNDED ALLEGATIONS AND THE PUBLICATION OF MY NAME IN A DAYTON DAILY NEWS ARTICLE ON THE EXEMPLOYEE'S LAWSUIT MR POOLE HAD BEEN AT NCR 33 YEARS SEPARATELY THE STRUGGLING COMPUTER MAKER WHICH HAD AN OPERATING LOSS IN THE THIRD QUARTER SAID IT HAS EXPANDED ITS EFFORTS TO CUT ITS WORK FORCE IT OFFERED A VOLUNTARY SEPARATION TO ALL OF ITS WORKERS WHO HAVE BEEN WITH THE COMPANY AT LEAST ONE YEAR THE OFFER IS PART OF A PREVIOUSLY ANNOUNCED PLAN TO CUT NCR'S 51000MEMBER WORK FORCE BETWEEN 12 AND 15 BY EARLY 1994 THE LAWSUIT THAT LED TO MR POOLE'S RESIGNATION WAS FILED DURING AUGUST IN US DISTRICT COURT IN DALLAS BY J MEG OLSON AN AWARDWINNING 13YEAR VETERAN OF NCR'S SALES FORCE IT CHARGES NCR MR POOLE AND THREE OTHER NCR EXECUTIVES WITH BLATANT SEXUAL HARASSMENT AND DISCRIMINATION MRS OLSON 37 SAID SHE WAS DEMOTED AND HER INCOME DECREASED AFTER SHE COMPLAINED TO THE COMPANY IN HER LAWSUIT MRS OLSON SAID SHE WAS SUBJECTED TO DENIGRATING REMARKS ABOUT HER ANATOMY AND REMARKS ABOUT MAKING SALES ON HER BACK IN A PHONE INTERVIEW WEDNESDAY SHE ASSERTED THAT HER EXPERIENCE REFLECTED A SYSTEMIC CULTURE OF SEXUAL ABUSE AND DISCRIMINATION AT NCR OTHER EMPLOYEES HAVE FILED SIMILAR COMPLAINTS AGAINST THE COMPANY AND WITH THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN THE LAST FEW YEARS ALLEGING HARASSMENT BY EXECUTIVES MRS OLSON'S SUIT WHICH SEEKS FINANCIAL DAMAGES FROM NCR FOR PAST AND FUTURE POTENTIAL INCOME WAS FILED AFTER SHE AND HER HUSBAND FAILED TO GET NCR TO AGREE TO A 11 MILLION SETTLEMENT IN APRIL WHEN MRS OLSON LOWERED HER SETTLEMENT REQUEST TO 750000 SHE SAID NCR OFFERED HER FOUR MONTHS PAY TO GET LOST MRS OLSON'S HUSBAND TERRY 41 FILED A SEPARATE COMPLAINT WITH NCR ALLEGING AGE DISCRIMINATION AFTER HE WAS FIRED FROM HIS SALES JOB IN AUGUST 1992 HE HAS TAKEN HIS CASE TO THE EEOC WHICH HAS YET TO REVIEW THE MATTER NCR'S CHIEF LABOR COUNSEL MARK KINGSEED CONFIRMED THE NEGOTIATIONS WITH THE OLSONS ON MONDAY NCR AND MRS OLSON'S ATTORNEYS FAILED TO MEDIATE A SETTLEMENT MR KINGSEED SAID NCR CURRENTLY HAS NO OFFER ON THE TABLE WE ARE LOOKING FORWARD TO GETTING BOTH OLSONS BEFORE A FORUM WHERE THEY ARE UNDER OATH AND WHERE THEY CAN'T RELY ON INNUENDO AND RUMOR HE SAID WHEN THAT HAPPENS WE'RE CONFIDENT THESE CLAIMS WILL BE THROWN OUT WHILE MR KINGSEED ACKNOWLEDGED THAT OTHER SIMILAR COMPLAINTS HAVE BEEN LODGED AGAINST NCR HE SAID SEXUAL HARASSMENT ISN'T A PROBLEM AT THE COMPANY HE SAID THERE IS ONE OTHER LAWSUIT PENDING IN FLORIDA AND A FEW CLAIMS BEFORE THE EEOC OBVIOUSLY WE'D PREFER TO HAVE NONE HE ADDED NCR CHAIRMAN JERRE L STEAD SAID IN A STATEMENT THAT HE ACCEPTED MR POOLE'S RESIGNATION WITH GREAT RELUCTANCE I DID NOT ASK JACK TO RESIGN AND IN FACT I URGED HIM TO STAY WITH NCR IN HIS PRESENT POSITION MR POOLE COULDN'T BE REACHED TO COMMENT THE OTHER EXECUTIVES NAMED IN THE LAWSUIT ARE ROD S GRAY AREA VICE PRESIDENT OF THE SOUTHWEST AND DISTRICT MANAGERS MICHAEL J DINUNZIO AND BOB MORONI MR KINGSEED WHO ALSO IS REPRESENTING THE EXECUTIVES SAID THEY WOULDN'T HAVE ANY COMMENT ON THE COMPLAINT SINCE THE SUMMER WHEN THEY WERE TRYING TO NEGOTIATE A SETTLEMENT WITH NCR THE OLSONS HAVE SENT LOCAL AND NATIONAL MEDIA NUMEROUS DOCUMENTS RELATED TO MRS OLSON'S COMPLAINTS AND HAVE REPEATEDLY WRITTEN LETTERS TO POLITICIANS OUTLINING THEIR GRIEVANCES A COMPANY SPOKESMAN SAID NCR HAS ANTIHARASSMENT POLICIES THAT ARE RIGOROUSLY ENFORCED ACCORDING TO MR KINGSEED MR STEAD RECENTLY INSTALLED AN EXECUTIVE ASSISTANT LAURIE REISER TO DEAL WITH LABOR PROBLEMS INCLUDING WORKER COMPLAINTS OF SEXUAL HARASSMENT AND DISCRIMINATION UNDER THE VOLUNTARY SEPARATION PLAN ANNOUNCED ON WEDNESDAY NCR IS OFFERING ANY WORKER WITH AT LEAST ONE YEAR AT THE COMPANY THE OPTION OF LEAVING NCR IN RETURN FOR ONE MONTH'S PAY FOR EACH YEAR OF SERVICE THAT FOLLOWS AN EARLYRETIREMENT OFFER MADE LAST MONTH AN NCR SPOKESMAN SAID HE DIDN'T KNOW HOW MANY EMPLOYEES HAD TAKEN THE EARLIER OFFER NCR IS SUFFERING FROM FALLING REVENUES AND IN THE THIRD QUARTER SHOWED A 49 MILLION OPERATING LOSS ITS FIRST SINCE IT WAS ACQUIRED BY AT&T TWO YEARS AGO 9311260097 931126 BUSINESS BRIEFS MERIDIAN BANCORP INC PURCHASED FOUR SOUTHERN NEW JERSEY BRANCHES OF PROVIDENT SAVINGS BANK JERSEY CITY NJ TERMS WEREN'T DISCLOSED KROGER CO AGREED TO BUY 11 SUPERMARKETS IN THE HOUSTON AREA FROM APPLETREE MARKETS INC FOR AN UNDISCLOSED PRICE NORWEST CORP DEFINITIVELY AGREED TO PURCHASE COMMUNITY CREDIT CO EDINA MINN A CLOSELY HELD CONSUMERFINANCE COMPANY BY EARLY 1994 SUBJECT TO APPROVAL BY REGULATORS AND COMMUNITY CREDIT SHAREHOLDERS TERMS WEREN'T DISCLOSED BANNER AEROSPACE INC INVOKED A VOLUNTARY QUARANTINE ON AIRCRAFT COMPONENTS STORED IN A CARROLLTON TEXAS WAREHOUSE WHICH WAS DAMAGED BY A STORM ON NOV 14 THE COMPANY SAID DAMAGE ESTIMATES WEREN'T AVAILABLE PENDING COMPLETION OF AN INSPECTION OF THE PARTS 9311260096 931126 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GULF STATES UTILITIES CO A SHELF OFFERING FOR UP TO 150 MILLION OF PREFERRED SHARES AND PREFERENCE SHARES IMMUNOGEN INC AN OFFERING OF 25 MILLION COMMON SHARES VIA SMITH BARNEY SHEARSON INC AND MONTGOMERY SECURITIES REPLIGEN CORP AN OFFERING OF 2500000 COMMON SHARES VIA LEHMAN BROTHERS MONTGOMERY SECURITIES AND ROBERTSON STEPHENS & CO SYSTEMS ENERGY RESOURCES INC A UNIT OF ENTERGY CORP A SHELF OFFERING FOR UP TO 435102000 OF SECURED LEASE OBLIGATION BONDS TELULAR CORP AN INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA LEHMAN BROTHERS AND ALEX BROWN & SONS INC 9311260095 931126 THE AMERICAS VISIONS OF ECUADORAN SUGARPLUMS FADE AWAY BY JIMMY WEISKOPF RIOBAMBA ECUADOR FOR YEARS PETROECUADOR WAS JUST ANOTHER SLUGGISH STATEOWNED OIL MONOPOLY AND THE SMALLEST AND LEAST INFLUENTIAL MEMBER OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES BUT SHORTLY AFTER CHRISTMAS LAST YEAR THAT IMAGE CHANGED DRAMATICALLY ON DEC 31 1992 HAVING ANNOUNCED EARLIER THAT IT WAS TIRED OF BEING PUSHED AROUND BY ITS LARGER OPEC COUSINS PETROECUADOR SEVERED ITS TIES WITH THE CARTEL SHORTLY THEREAFTER REPRESENTATIVES OF NEWLY ELECTED PRESIDENT SIXTO DURANBALLEN ANNOUNCED THAT THE GOVERNMENT WOULD LIQUIDATE MAJOR REFINERIES AND PIPELINES AND TURN PETROECUADOR INTO A PRIVATE COMPANY THE MAJORITY OF WHICH COULD BE OWNED BY ORDINARY SHAREHOLDERS VISIONS OF THE WILDLY SUCCESSFUL TURNAROUND AND PRIVATIZATION OF ARGENTINA'S STATE OIL COMPANY DANCED IN THE HEADS OF THOUSANDS OF PRIVATE OIL INVESTORS AROUND THE WORLD LIKE ARGENTINA ECUADOR SEEMED INTENT ON TURNING A MONOPOLISTIC INEFFICIENT AND FEATHERBEDDED STATE CONCERN WITH AN ENORMOUSLY RICH POTENTIAL INTO A VIABLE ECONOMIC CONCERN ALAS RECENT POLITICAL DEVELOPMENTS HAVE SPLINTERED IF NOT SHATTERED THESE SUGARPLUM FANTASIES UNION OPPOSITION THE SHAKY NATURE OF PRESIDENT DURAN'S COALITION GOVERNMENT ECOLOGICAL AND ANTHROPOLOGICAL CHECKS ON OIL EXPLORATION AND EXPLOITATION AND THE SLOW PACE OF THE CURRENT LEGISLATIVE PROCESS ALL CONSPIRED TO SLOW THE PACE OF REFORM TO A SNAIL'S PACE THE PROBABLE OUTCOME OF ALL THIS WILL NOT BE THE SELLING OFF OF PETROECUADOR BUT MERELY DEREGULATION AND THE LURING OF MULTINATIONAL CAPITAL TO NEW FIELDS WHICH THE COUNTRY CANNOT DEVELOP ITSELF WHILE PETROECUADOR IS THE FOURTH BIGGEST EXPORTER OF CRUDE IN LATIN AMERICA NEARLY HALF OF THE COUNTRY'S DAILY PRODUCTION 335000 BARRELS IS SOLD AT SUBSIDIZED PRICES ON THE HOME MARKET ITS INFRASTRUCTURE IS ANTIQUATED AND PRESENT MARKET CONDITIONS DON'T FAVOR THE COUNTRY UNLESS MASSIVE INVESTMENTS IN FACILITIES AND EXPLORATION CAN BE MADE IN ADDITION PAST FAILURE TO COMPLY WITH CONTRACTS AND NATIONALISTIC TANTRUMS HAVE BURDENED IT WITH A POOR REPUTATION AMONG THE MULTINATIONALS WITH WHICH IT DEALS THE ADMINISTRATION'S CURRENT DITHERING HAS DONE LITTLE TO IMPROVE THIS IMAGE IN LATE SEPTEMBER THE GOVERNMENT POSTPONED UNTIL 1994 ITS BIGGESTEVER ROUND OF INTERNATIONAL OIL LICENSING AGREEMENTS FOR PRIVATE COMPANIES ECUADOR HAD BEEN OFFERING 14 NEW BLOCKS TO FOREIGN OIL COMPANIES IN THE HOPE OF DOUBLING ITS CRUDE PRODUCTION BY THE END OF THE CENTURY AT A TOTAL COST FOR PRODUCTION PIPELINES AND REFINERIES OF NEARLY 4 BILLION THE MOST ATTRACTIVE BLOCKS ARE THE 10 IN THE AMAZON REGION WHICH WERE FORMERLY RESERVED FOR A STATE SUBSIDIARY PETROPRODUCCION OCCIDENTAL SHELL AMOCO MOBIL AND OTHER MAJOR PLAYERS ARE AMONG 30 COMPANIES WHO ARE INTERESTED IN PARTICIPATING EVEN THE STATE OIL CONCERN OF THE REPUBLIC OF CHINA IS A PLAYER IN PRIVATE THESE MULTINATIONALS ADMIT THAT THEY ARE NOT INTERESTED IN NICE WORDS ABOUT THE FREE MARKET BUT SPECIFIC CONTRACT TERMS DESPITE THE RECENT PASSAGE AFTER EIGHT MONTHS IN CONGRESS OF A BILL THAT THEORETICALLY GIVES THE PRESIDENT BROAD POWERS TO PRIVATIZE STATE INDUSTRIES THE OIL REFORMS DEPEND ON ANOTHER BILL THAT IS STILL STUCK IN CONGRESS FOR THE RESTRUCTURING OF THE HYDROCARBON SECTOR EVEN IF THIS BILL DOES PASS IT SUGGESTS THAT THE NEW ROLE PLAYED BY PRIVATE COMPANIES WILL STILL BE EXTREMELY LIMITED CONCENTRATING UPON THE EXPLORATION AND DEVELOPMENT OF NEW FIELDS WHAT IT FUNDAMENTALLY PROPOSES IS A LIFTING OF THE STATE COMPANY'S CURRENT MONOPOLY OF EXPLORATION EXPLOITATION TRANSPORT REFINING COMMERCIALIZATION ETC HOWEVER ACCORDING TO THE BILL PETROECUADOR WILL IN ITS ORIGINS BE THE PROPERTY OF THE STATE ENERGY MINISTER FRANCISCO ACOSTA NOW ADMITS THAT THE PLANNED TOTAL RESTRUCTURING OF THE SECTOR MAY NOT BE ACCOMPLISHED BY THE 1994 LICENSING DEADLINE THIS MEANS THAT THE LICENSING MAY TAKE PLACE UNDER THE EXISTING LAWS OR SOME TEMPORARY PATCHWORK AMENDMENTS AND THIS WARNS ECUADOR'S EXOPEC REPRESENTATIVE RENE ORTIZ COULD SERIOUSLY JEOPARDIZE THE COUNTRY'S CREDIBILITY CONGRESS'S HANDLING OF IMPORTANT NATIONAL MATTERS IS A DISASTER SAYS MR ORTIZ AT THE MOMENT THE FEW FOREIGN COMPANIES OPERATING IN ECUADOR TOGETHER PRODUCE ONLY ABOUT 20000 BARRELS DAILY AND THERE ARE FEW INCENTIVES TO INVEST IN THE EXPLOITATION OF THE 15 BILLION BARRELS OF CRUDE RESERVES WHICH THE COUNTRY POSSESSES SINCE MOST OF THE RESERVES ARE IN HEAVY CRUDES A MULTIMILLION DOLLAR INVESTMENT WOULD HAVE TO BE MADE TO UPGRADE PRESENT FACILITIES WHICH ARE DESIGNED TO HANDLE LIGHT CRUDES IN ADDITION ECUADOR'S PACIFIC COAST CANNOT COMPETE IN THE WELLSUPPLIED US WEST COAST WHILE TRANSPORT COSTS THROUGH THE PANAMA CANAL GIVE IT FEW ADVANTAGES OVER RIVAL CRUDES IN GULF AND EAST COAST REFINERIES A TOP MULTINATIONAL EXECUTIVE WHO WORKED IN ECUADOR POINTS OUT MOREOVER THAT THE TRANSITION FROM A CONTROLLED MARKET FOR INTERNAL PRODUCTS TO A FREE ONE CANNOT BE DONE OVERNIGHT SAY THE PRODUCING SUBSIDIARY OF A REFORMED PETROECUADOR GETS A BETTER PRICE OVERSEAS ARE THEY GOING TO EXPORT THEIR CRUDE AND THEN ASK THE MARKETING SUBSIDIARY TO BUY IT BACK FOR DOMESTIC USE AS IMPORTS ASKS THE EXECUTIVE NEVERTHELESS SIMILAR DOUBTS WERE RAISED ABOUT ARGENTINA WHEN THE GOVERNMENT DECIDED TO PRIVATIZE ITS STATE OIL COMPANY YPF AS IN ECUADOR YPF WAS GEARED TO DOMESTIC CONSUMPTION AND PLAGUED BY CHAUVINISM AND INEFFICIENCY BUT WITHIN THREE YEARS YPF WHICH HAD BEEN LOSING 500 MILLION ANNUALLY WAS TURNED AROUND WITH STRONG SUPPORT FROM THE WORLD BANK AND CONVERTED INTO A PRIVATE ENTERPRISE 45 OF WHICH WAS SOLD FOR 3 BILLION ON INTERNATIONAL CAPITAL MARKETS AND AN ADDITIONAL 13 OF WHICH WAS RESERVED FOR ARGENTINE PENSIONERS WHY CAN'T ECUADOR DO THE SAME GIVEN ITS RICH RESERVES THE COUNTRY'S POLITICAL STABILITY AND WHAT MOST OIL EXECUTIVES ADMIT IS A CAPABLE LABOR FORCE HAMPERED ONLY BY EXCESSIVE BUREAUCRACY THE FACT THAT THE MULTINATIONALS HAVE INVESTED 500 MILLION IN EXPLORATION OVER THE PAST FIVE YEARS AND DISCOVERED 700 MILLION BARRELS OF RESERVES ON THEIR OWN ACCOUNT DOES SHOW A CERTAIN OPTIMISM ABOUT THE FUTURE SHAPE OF THE INDUSTRY THE PRESIDENT'S AIDES CLAIM HE IS COMMITTED TO A PRIVATIZATION POLICY BUT MANY QUESTION WHETHER THE GOVERNMENT HAS THE FREEMARKET RESOLVE NEEDED TO ACHIEVE THIS GOAL ENERGY MINISTER ACOSTA THE THIRD MINISTER IN THE PAST YEAR SAID RECENTLY THAT THE IDEA OF TRANSFORMING PETROECUADOR INTO A MIXED COMPANY IS NOT DEFINITE IF THE PRIVATIZATION ISSUE IS NOT DECIDED WITHIN THE NEXT FEW MONTHS IT COULD SERIOUSLY UNDERMINE PRESIDENT DURAN'S COMMITMENT TO MODERNIZE THE COUNTRY'S ECONOMY MR WEISKOPF IS A COLOMBIANBASED FREELANCE WRITER 9311260094 931126 TECHNOLOGY & ENVIRONMENT ADMINISTRATION NEARING AN AGREEMENT ON REVISING SUPERFUND LIABILITY RULES BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS NEARING A DECISION ON HOW TO REWRITE SUPERFUND PROVISIONS THAT GOVERN THE LIABILITY OF BUSINESSES THAT DUMP HAZARDOUS WASTE THE ENVIRONMENTAL PROTECTION AGENCY AND THE TREASURY DEPARTMENT WHICH HAVE BEEN AT ODDS OVER THE ISSUE FOR SEVERAL MONTHS ARE CLOSE TO AGREEMENT THE LIABILITY ISSUE IS ONE OF THE MOST CONTENTIOUS ELEMENTS OF THE LAW THAT GOVERNS THE CLEANUP OF ABANDONED HAZARDOUSWASTE SITES BUT ANOTHER MAJOR ELEMENT IN DISPUTE HASN'T BEEN RESOLVED STAFFLEVEL NEGOTIATIONS ARE NEARLY FINISHED ON JOINT AND SEVERAL LIABILITY UNDER THE CONCEPT A BUSINESS RESPONSIBLE FOR PART OF THE WASTE IN A SITE CAN BE HELD LIABLE BY THE EPA AND THE JUSTICE DEPARTMENT FOR CLEANUP OF THE ENTIRE SITE THE TREASURY HAS FAVORED ELIMINATING THIS PART OF THE LAW THE EPA WANTS TO KEEP IT UNDER THE COMPROMISE THAT IS APPROACHING COMPLETION JOINT AND SEVERAL LIABILITY WOULD BE A LASTRESORT OPTION FOR THE FEDERAL GOVERNMENT BUT THE MONETARY DAMAGES AVAILABLE THOUGH STILL IN EXCESS OF WHAT AN INDIVIDUAL BUSINESS MAY BE RESPONSIBLE FOR WOULD BE CAPPED THE LIMIT IS LIKELY TO BE WORKED OUT THROUGH THE REGULATORY PROCESS ACCORDING TO A PARTICIPANT IN THE DISCUSSIONS ESSENTIALLY IT'S NOT GOING TO BE GROSSLY DISPROPORTIONATE SAID THE ADMINISTRATION OFFICIAL THE PLAN ALSO WOULD CREATE A SYSTEM FOR ALLOCATING THE LIABILITY OF INDIVIDUAL BUSINESSES PRESIDED OVER BY A NEUTRAL PARTY BUSINESSES THAT SETTLE BASED ON THE ALLOCATION WOULD CONTINUE TO BE PROTECTED FROM LITIGATION BY OTHER BUSINESSES RESPONSIBLE FOR THE SITE THEY ALSO WOULD BE PROTECTED FROM FUTURE LITIGATION BASED ON FAILURE OF THE CLEANUP OR ON ENVIRONMENTAL DAMAGE THAT HADN'T BEEN DISCOVERED AT THE TIME OF THE CLEANUP THIS NEW PROTECTION WOULD BE OFFERED IN EXCHANGE FOR A PREMIUM CHARGED BUSINESSES THAT SETTLE THE SUPERFUND LAWSUIT THE NEGOTIATIONS WHICH HAVE PITTED STAFF MEMBERS OF THE TREASURY AND THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS AGAINST THE EPA AND THE JUSTICE DEPARTMENT HAVEN'T RESOLVED ALL ISSUES CONCERNING JOINT AND SEVERAL LIABILITY THE MAIN OBSTACLE ACCORDING TO THE ADMINISTRATION AIDE IS WHETHER EVIDENCE TURNED UP IN THE NEW SETTLEMENT PROCESS WOULD BE ADMISSIBLE IN SUBSEQUENT LAWSUITS IF THE PARTIES FAILED TO ENDORSE THE SETTLEMENT THE TREASURY AND THE COUNCIL OF ECONOMIC ADVISERS WANT THE EVIDENCE TO BE ADMISSIBLE WHILE THE EPA AND THE JUSTICE DEPARTMENT DON'T BUT BOTH SIDES ARE OPTIMISTIC THAT THE REMAINING ISSUES CAN BE RESOLVED BEFORE WEDNESDAY WHEN THE WHITE HOUSE CONVENES A MEETING OF CABINET OFFICIALS TOP WHITE HOUSE AIDES AND EPA ADMINISTRATOR CAROL BROWNER TO DISCUSS SUPERFUND ALSO TO BE DISCUSSED IS THE QUESTION OF WHETHER BUSINESSES SHOULD BE HELD LIABLE FOR DUMPING THAT OCCURRED BEFORE A CERTAIN DATE IN ALL LIKELIHOOD 1980 WHEN THE SUPERFUND LAW WAS ENACTED THE EPA FAVORS MAINTAINING ITS RIGHT TO SUE BUSINESSES FOR SUCH DUMPING WHILE THE TREASURY OPPOSES HOLDING BUSINESSES LIABLE FOR DUMPING PRIOR TO THE CUTOFF DATE THE DIFFERENCE ACCORDING TO BOWMAN CUTTER DEPUTY ASSISTANT TO MR CLINTON FOR ECONOMIC POLICY AND HEAD OF AN INTERAGENCY EFFORT TO RESOLVE THE SUPERFUND ISSUE IS BETWEEN THOSE WHO SAY WHY SHOULD YOU HAVE TO PAY TO CLEAN UP A SITE WHEN WHATEVER OCCURRED ON THAT SITE OCCURRED WHEN IT WASN'T AGAINST THE LAW AND THOSE WHO ARGUE THAT THE BASIC PRINCIPLE IS THE POLLUTER PAYS 9311260093 931126 BUSINESS BRIEF ATMOS ENERGY CORP ACQUISITION OF GREELEY GAS IS APPROVED BY SHAREHOLDERS ATMOS ENERGY CORP SAID SHAREHOLDERS APPROVED THE PURCHASE OF GREELEY GAS CO OF DENVER IN A STOCK TRANSACTION VALUED AT 62 MILLION THE DALLASBASED NATURALGAS SERVICE COMPANY WILL EXCHANGE 23 MILLION SHARES OF NEWLY ISSUED COMMON STOCK FOR ALL OF THE SHARES OF GREELEY A CLOSELY HELD NATURALGAS SERVICE COMPANY GREELEY STOCKHOLDERS APPROVED THE MERGER NOV 19 ATMOS SAID IT WILL HAVE APPROXIMATELY 98 MILLION SHARES OUTSTANDING WHEN THE MERGER IS COMPLETED BY YEAR END OR EARLY JANUARY WITH THIS MERGER ATMOS WILL EXPAND INTO COLORADO KANSAS AND A PORTION OF MISSOURI FOR THE FIRST TIME AND THE COMPANY EXPECTS TO BENEFIT FROM THE GEOGRAPHIC DIVERSITY A SPOKESWOMAN SAID 9311260092 931126 REVIEW & OUTLOOK EDITORIAL POSTCOMMUNIST PRESS NOT TWO WEEKS AFTER THE COUNCIL OF EUROPE'S RECENT MANIFESTO SUPPORTING RESTRICTIONS ON PRESS FREEDOM IN EUROPE ROMANIA'S SENATE PASSED LEGISLATION ALLOWING PRISON SENTENCES OF UP TO 10 YEARS FOR JOURNALISTS WHOSE CRITICISM OF THE PRESIDENT AND OTHER PUBLIC AUTHORITIES AMOUNTS TO INSULT SLANDER OR THREAT MORE SERIOUSLY CZECH REPUBLIC PRESIDENT VACLAV HAVEL A STAR OF THE ANTICOMMUNIST CRUSADE JUST SIGNED A NEW LAW CALLING FOR UP TO TWO YEARS IN PRISON FOR ANYONE CONVICTED OF DEFAMING THE GOVERNMENT PARLIAMENT OR THE CONSTITUTIONAL COURT THE IRONY OF COURSE IS THAT IN THE OLD DAYS OF THE COLD WAR SOVIET BLOC COUNTRIES GREW ADEPT AT JUSTIFYING REPRESSION BY DRAWING IMPLAUSIBLE PARALLELS TO WESTERN PRACTICES SOVIET GULAGS WERE DEPICTED AS FIRST CLASS HOTELS COMPARED WITH AMERICA'S INNER CITIES BUT WITH THE FALL OF COMMUNISM THESE COUNTRIES SINCERELY SOUGHT TO EMULATE THE WEST SO IT IS UNFORTUNATE TO SEE THE COUNCIL OF EUROPE BACKTRACKING ON THE RIGHT OF FREE PEOPLES TO CRITICIZE THE WORKS OF GOVERNMENT THE COUNCIL'S MESSAGE WAS SENT TO CENTRAL AND EASTERN EUROPEANS WHO HAD FOUGHT HARD FOR PRECISELY THE FREEDOMS SOME THINSKINNED WESTERN POLITICIANS FEEL INCLINED TO ABRIDGE NONBINDING COUNCIL RESOLUTIONS DON'T EXACTLY BRING DOWN GOVERNMENTS OF COURSE BUT THEY AREN'T INNOCUOUS ROMANIA'S PRESS GAINED GREATER FREEDOM AFTER CEAUCESCU'S FALL BUT IT STILL IS STRUGGLING TO WIN FULL INDEPENDENCE FROM STATE CONTROL ROMANIA LIBERA AND OTHER NEWLY FORMED PAPERS ALL HAVE HAD THEIR PUBLISHING OR DISTRIBUTION HALTED FROM TIME TO TIME OR BEEN RANDOMLY TOLD THAT SORRY THERE IS A TEMPORARY PAPER SHORTAGE THAT LIMITS HOW MANY COPIES YOU MAY PRODUCE THE LATEST LAW IS A FURTHER REVERSION TO HEAVYHANDED POLICE STATE POLICIES TO VARYING DEGREES THE NEWS MEDIA IN DEMOCRATIC COUNTRIES HAVE MANAGED TO PROTECT THEMSELVES AGAINST CENSORSHIP BUT THE DEVELOPING FREE PRESS IN FORMER COMMUNIST LANDS REMAINS RELATIVELY WEAK IN RESOURCES THE PRESS INDEED IS SOMETIMES IRRESPONSIBLE BUT THE BEST CURE FOR THAT IS TO ALLOW A FREE PLAY OF NEWS AND OPINION AND LET THE VOTERS DECIDE FOR THEMSELVES WHOM TO TRUST THE CZECH LAW IS ESPECIALLY TROUBLING BECAUSE THAT COUNTRY HAS SOUGHT AND RECEIVED THE GOOD OPINION OF THE WEST FOR ITS ENLIGHTENED POLITICAL AND ECONOMIC POLICIES ROMANIA ON THE OTHER HAND IS ONE OF THE LEAST FREE FORMER COMMUNIST COUNTRIES BUT UNTIL RECENTLY IT WAS TRYING TO GUSSY UP ITS IMAGE IT CARES A LOT ABOUT HOW THE WEST VIEWS ITS DEMOCRATIZATION PROCESS AND WILL DO A LOT FOR A NICE REPORT CARD AN EASY WAY TO TEST THIS WOULD BE FOR WESTERN GOVERNMENTS TO SEND A CLEAR MESSAGE THAT THEY FIND ROMANIA'S PRESS LAW WHICH HAS YET TO GO BEFORE THE LOWER HOUSE OF PARLIAMENT UNACCEPTABLE BUT IF THERE IS TO BE A CLEAR MESSAGE THE COUNCIL OF EUROPE SHOULD REVIEW ITS OWN MANIFESTO AND MAKE CLEAR THAT THE ROMANIANS AND CZECHS ARE HEADED IN THE WRONG DIRECTION 9311260091 931126 WHO'S NEWS KLH ENGINEERING REMOVES BOETHLING AS PRESIDENT CHIEF ENGLEWOOD COLO KLH ENGINEERING GROUP INC SAID ITS BOARD RELIEVED FREDERICK C BOETHLING OF HIS DUTIES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AND STEPPED UP COSTCUTTING MOVES IN AN EFFORT TO STEM CONTINUING LOSSES SEPARATELY THE ENGINEERING CONSULTING COMPANY SAID ITS THREE ELECTED OUTSIDE DIRECTORS DECLINED TO TAKE THEIR SEATS ON THE BOARD BECAUSE OF THE COMPANY'S TROUBLED FINANCIAL CONDITION THE BOARD CURRENTLY CONSISTS OF FIVE COMPANY OFFICIALS WHO VOTED 4TO1 TO OUST MR BOETHLING KLH SAID THAT IT WILL ELIMINATE SIX EXECUTIVE POSITIONS INCLUDING ALL THREE REGIONAL VICE PRESIDENTS AND WILL SUSPEND ITS ACQUISITION PROGRAM WHICH INCLUDES TWO PROPOSED PURCHASES AGREED TO EARLIER THIS MONTH THE COMPANY ALSO SAID SOME EXECUTIVES WILL TAKE PAY CUTS AND FIVE OF ITS 15 OFFICES WILL BE CLOSED MR BOETHLING 48 YEARS OLD WILL REMAIN A DIRECTOR AND CHAIRMAN BECAUSE THE COMPANY HOPES TO TAKE ADVANTAGE OF HIS ACQUISITION EXPERTISE IN THE FUTURE WHEN FINANCES ARE STABLE SAID RICHARD L GORMAN 44 A DIRECTOR AND VICE PRESIDENT OF OPERATIONS WHO WILL SERVE AS INTERIM PRESIDENT MR BOETHLING COULDN'T BE REACHED FOR COMMENT 9311260090 931126 DIVIDEND NEWS RYDER HOLDERS TO GET AVIALLSPINOFF SHARE FOR EVERY 4 OF PARENT MIAMI RYDER SYSTEM INC SAID STOCKHOLDERS WOULD RECEIVE A TAXFREE DIVIDEND OF ONE COMMON SHARE OF AVIALL INC A SPINOFF OF RYDER'S AVIATION BUSINESS FOR EVERY FOUR RYDER SHARES OWNED WHEN THE SPINOFF IS COMPLETED NEXT MONTH THE COMPANY PREVIOUSLY SAID THE TRANSACTION WOULD INVOLVE A SPECIAL DIVIDEND BUT THE TERMS OF THAT DIVIDEND HADN'T BEEN DISCLOSED THE DIVIDEND IS PAYABLE DEC 7 AND CERTIFICATES FOR THE NEW SHARES WILL BE MAILED BEGINNING DEC 14 THE AVIALL SPINOFF REPRESENTS THE LATEST AND LARGEST OF MANY OPERATIONS SHED IN RECENT YEARS BY RYDER A HIGHWAYTRANSPORTATION SERVICES CONCERN THAT REPORTED 52 BILLION OF REVENUE IN 1992 THE STRATEGY IS DESIGNED TO RETURN RYDER TO ITS CORE BUSINESSES PRIMARILY TRUCKING AND VEHICLE LEASING THE COMPANY SAID AVIALL AN AVIATION PARTS AND REPAIR PROVIDER WILL BEGIN TRADING ON THE NEW YORK STOCK EXCHANGE NEXT WEDNESDAY UNDER THE SYMBOL AVL AFTER THE DIVIDEND DISTRIBUTION AVIALL WILL HAVE APPROXIMATELY 193 MILLION SHARES OUTSTANDING AND ABOUT 19000 SHAREHOLDERS 9311260089 931126 ECONOMY OIL PRICES DROP AS OPEC FAILS TO CUT OUTPUT SHIFT IN STRATEGY IS AIMED AT PRESERVING MEMBERS' SHARE OF WORLD MARKETS BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL VIENNA THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAS DECIDED NOT TO CUT OIL PRODUCTION A MOVE THAT THREATENS TO SEND PRICES TUMBLING THIS SHIFT IN POLICY WITH WIDERANGING IMPLICATIONS FOR THE WORLD OIL INDUSTRY AND FOR THE REGIONS THAT PRODUCE PETROLEUM CAME AFTER OPEC MINISTERS MEETING HERE THIS WEEK ABANDONED THEIR STRATEGY OF PROPPING UP PRICES BY CUTTING OUTPUT THE MINISTERS BECAUSE OF STEADILY FALLING PRICES HAVE BEEN UNDER PRESSURE TO CUT PRODUCTION BUT WEDNESDAY NIGHT THEY SWITCHED COURSE AFTER ONLY TWO DAYS OF TALKS THEY DECIDED NOT TO LOWER THEIR CEILING OF 245 MILLION BARRELS A DAY WHICH HAD BEEN SET IN SEPTEMBER AND TO PREPARE TO RIDE OUT ANY RESULTING PRICE SHOCK OIL PRICES FELL MORE THAN 1 A BARREL SINCE THE DECISION DROPPING NORTH SEA AND US CRUDES TO FIVEYEAR LOWS OF 14 TO 16 A BARREL FURTHER DECLINES ARE ANTICIPATED WHEN US OIL MARKETS CLOSED BY THE THANKSGIVING HOLIDAY REOPEN MONDAY THE PRICES WILL COLLAPSE NOT ONLY ON OPEC BUT ON OTHER PRODUCERS AS WELL SAID ABDULLA BIN HAMAD ALATTIYAH OF QATAR THE NEW PRESIDENT OF OPEC INDEED BEHIND OPEC'S DECISION TO PRODUCE AS MUCH AS THE SEPTEMBER CEILING ALLOWED IS THE CONVICTION THAT FURTHER OUTPUT CUTS WOULD ONLY PROVIDE MORE ROOM FOR INCREASED PRODUCTION BY NONOPEC EXPORTERS WE ALWAYS MAKE THE SACRIFICE AND THEY PLUCK THE FRUIT SAID ALI AHMAD ALBAGHLI KUWAIT'S OIL MINISTER STILL THE CHANGED OPEC GAME PLAN SURPRISED OIL TRADERS AND OTHERS IN THE INDUSTRY THEY HAD BEEN BANKING ON MAJOR CUTS IN OPEC'S OUTPUT TO BALANCE A MARKET GLUTTED BY THE COMBINATION OF SLUGGISH OIL DEMAND HIGH OIL INVENTORIES AND A RISING FLOW OF OIL FROM THE NORTH SEA AND OTHER NONOPEC REGIONS WE'RE IN UNCHARTED TERRITORY SAID SHAHROKH NIKKHAH EXECUTIVE VICEPRESIDENT OF NEW YORKBASED REFCO INC SOME EIGHT YEARS AGO OPEC TRIED A SIMILAR TACTIC TRIGGERING A DAMAGING PRICE WAR THAT DROPPED CRUDE PRICES TO 10 A BARREL OR LESS THIS LEFT SOME PRODUCING COUNTRIES DEEPLY IN DEBT SENDING SHOCK WAVES THROUGH THE BANKING INDUSTRY ALSO IT NEARLY BANKRUPTED THE US OIL INDUSTRY AND IDLED MARGINALLY ECONOMIC OIL FIELDS AROUND THE WORLD BUT THIS TIME THERE IS A DIFFERENCE INSTEAD OF TRYING TO REGAIN LOST PRODUCTION OPEC IS TRYING TO MAINTAIN ITS CURRENT PRODUCTION PRECLUDING OTHERS FROM GRABBING MORE OF ITS CLAIMED MARKET SHARE FOR THIS AND OTHER REASONS OIL PRICES MAY NOT SINK AS FAR AS IN THE PAST AND MAY REBOUND QUICKER IN MY OPINION IN ONE OR TWO WEEKS PRICES WILL RECOVER SAID GHOLAMREZA AGHAZADEH IRAN'S OIL MINISTER OTHER MINISTERS ALSO INSISTED THAT THEY ARE NOT TAKING AS BIG A RISK AS IT MAY APPEAR THEY CONTENDED THAT THE HIGH USE PERIOD OF WINTER IS NEARLY HERE AND THAT OPEC'S PREVIOUSLY AGREED OUTPUT CUTS WOULD SOP UP THE SURPLUS I AM CONVINCED WE ARE COMING INTO A BASICALLY SOUND SUPPLY AND DEMAND SITUATION AND WILL HAVE BETTER PRICES SAID ALIRIO PARRA VENEZUELA'S OIL MINISTER PERHAPS SO BUT OPEC'S MINISTERS HAVE MISJUDGED MARKETS BEFORE MOST RECENTLY IN SEPTEMBER FOR A BRIEF PERIOD AFTER THAT MEETING OIL PRICES ROSE BECAUSE OPEC'S NEW PRODUCTION LIMIT APPEARED TO BE REALISTIC HOWEVER DEMAND FOR OPEC OIL FOR THE FOURTH QUARTER WAS OVERESTIMATED AND SUPPLIES FROM THE NORTH SEA WERE UNDERESTIMATED ALSO WORLD OIL INVENTORIES HAD BEEN INCREASING BECAUSE OF OPEC'S OVERPRODUCTION EARLIER IN THE YEAR AS A RESULT PRICES HAVE BEEN FALLING SINCE THEN BUILDING UP PRESSURE FOR THE MINISTERS TO TAKE SOME CORRECTIVE ACTION IN FACT SEVERAL MINISTERS DID WANT TO SEE PRODUCTION CUTS DECIDED AT THIS MEETING BUT BY WEDNESDAY NIGHT IT WAS CLEAR THAT THERE WASN'T A CONSENSUS TO MAKE OUTPUT CUTS LARGE ENOUGH TO PUSH UP OIL PRICES SIGNIFICANTLY SOME MINISTERS ALSO CITED AN UNSPOKEN FEAR OF THE DAY IRAQ RETURNS TO THE WORLD OIL MARKETS AS FURTHER HELPING TO SCUTTLE DISCUSSIONS OF REDUCING THE PRODUCTION QUOTAS OF THE 11 OTHER OPEC MEMBERS AT THIS TIME WHEN THE UNITED NATIONS EVENTUALLY LIFTS ITS BAN ON IRAQI OIL EXPORTS QUOTAS WILL HAVE TO BE REAPPORTIONED TO ACCOMMODATE THE ADDITIONAL SUPPLIES NOBODY SPOKE OF THAT DURING THE MEETING BUT IT WAS IN THE BACK OF OUR MINDS ONE OIL MINISTER CONCEDED 9311260088 931126 FIRST CITY BANCORP NEGOTIATES SETTLEMENT OF SUIT AGAINST FDIC HOUSTON FIRST CITY BANCORP OF TEXAS SAID IT NEGOTIATED A PROPOSED SETTLEMENT OF ITS LAWSUIT AGAINST FEDERAL REGULATORS OVER THEIR SEIZURE OF THE COMPANY'S BANKS LAST YEAR IN ITS SUIT WHICH SOUGHT 3 BILLION IN ACTUAL AND PUNITIVE DAMAGES FIRST CITY ARGUED THAT THE FEDERAL DEPOSIT INSURANCE CORP WAS UNJUSTIFIED IN SEIZING THE COMPANY'S 20 BANKS WHILE IT WAS TRYING TO RECAPITALIZE ITSELF WITH PRIVATE FUNDS BONDHOLDERS FORCED FIRST CITY INTO BANKRUPTCYLAW PROCEEDINGS A FEW DAYS AFTER THE SEIZURE THE SETTLEMENT PROPOSAL NEGOTIATED BY FIRST CITY AND FDIC REPRESENTATIVES MUST STILL BE APPROVED BY THE FDIC'S BOARD FIRST CITY'S BOARD AND THE FEDERAL BANKRUPTCY COURT IN DALLAS FIRST CITY OFFICIALS REFUSED TO PROVIDE ANY DETAILS OF THE PROPOSAL THE FDIC'S BOARD IS EXPECTED TO CONSIDER THE PLAN DEC 14 THE FEDERAL GOVERNMENT CONTRIBUTED 970 MILLION TO A 1988 BAILOUT OF FIRST CITY LED BY FORMER CHICAGO BANKER A ROBERT ABBOUD BUT THAT EFFORT FAILED AND MR ABBOUD WAS OUSTED IN 1991 AMID MOUNTING LOSSES WHEN THE FDIC SEIZED FIRST CITY'S BANKS LAST YEAR THE AGENCY ESTIMATED THAT THEIR CLOSURE WOULD COST ITS INSURANCE FUND 500 MILLION BUT AFTER SELLING THE BANKS AND OTHER ASSETS THE FDIC ESTIMATED IT WOULD BE LEFT WITH A 60 MILLION SURPLUS TO BE RETURNED TO FIRST CITY 9311260087 931126 BUSINESS BRIEF HUGHES AIRCRAFT PLANS TO SELL REDIFFUSION TO UNIT OF THOMSON HUGHES AIRCRAFT CO SAID IT WILL SELL ITS REDIFFUSION SIMULATION LTD SUBSIDIARY TO THOMSONCSF SA OF FRANCE BY THE END OF THE YEAR HUGHES THE LOS ANGELESBASED AEROSPACE AND COMMUNICATIONS UNIT OF GENERAL MOTORS CORP DIDN'T DISCLOSE TERMS WHICH IT SAID ARE STILL UNDER NEGOTIATION A SPOKESMAN SAID IT ISN'T YET CLEAR WHETHER THE COMPANY WILL DECLARE A LOSS OR GAIN ON THE SALE HOWEVER THE COMPANY IS A LEADER IN THE RAPIDLY SHRINKING MARKET FOR SIMULATION EQUIPMENT USED BY GOVERNMENTS AND AIRLINES TO TRAIN CREWS FOR MILITARY AND COMMERCIAL AIRCRAFT HUGHES BOUGHT THE SIMULATION COMPANY BASED IN THE UNITED KINGDOM FOR 283 MILLION FROM BET PLC LONDON IN 1988 WHEN REDIFFUSION SIMULATION EMPLOYED ABOUT 2500 WORKERS ABOUT 1200 JOBS HAVE BEEN CUT SINCE THEN MOST EMPLOYEES WORK AT THE COMPANY'S MAIN MANUFACTURING AND ENGINEERING FACILITY AT CRAWLEY SUSSEX IN BRITAIN A UNIT OF THOMSONCSF THAT IS BASED IN THE UK WILL CONTROL REDIFFUSION ONCE THE SALE IS COMPLETED THOMSON CSF IS A SUBSIDIARY OF THOMSON SA THE FRENCH ELECTRONICS COMPANY HUGHES SAID THE SALE WILL INCLUDE DIVISIONS IN TEXAS AND OKLAHOMA THAT MAKE ENTERTAINMENT GAMES AND AMUSEMENT RIDES USING SIMULATORS AND THAT SUPPORT SERVICES PROVIDED TO US AIRLINES EXCLUDED FROM THE SALE IS A DIVISION THAT MAKES AIRTRAFFICCONTROL SIMULATORS AND DIVISIONS THAT OFFER SELECTED TRAINING SERVICES HUGHES SAID IT WILL CONTINUE TO DISTRIBUTE REDIFFUSION ENTERTAINMENT SYSTEMS IN NORTH AMERICA 9311260086 931126 INTERNATIONAL KOHL SET BACK AS PRESIDENTIAL NOMINEE QUITS CONTROVERSY OVER OPINIONS SINKS CHANCELLOR'S ALLY FROM EASTERN GERMANY BY DANIEL BENJAMIN AND AUDREY CHOI STAFF REPORTERS OF THE WALL STREET JOURNAL BERLIN CHANCELLOR HELMUT KOHL WAS DEALT A SHARP SETBACK WHEN HIS NOMINEE FOR THE GERMAN PRESIDENCY WITHDREW FROM THE RACE THE CANDIDATE STEFFEN HEITMANN HAD BEEN THE SUBJECT OF UNRELENTING CRITICISM BECAUSE OF HIS CONTROVERSIAL VIEWS ON GERMAN HISTORY THE ROLE OF WOMEN AND FOREIGNERS A HITHERTO OBSCURE OFFICIAL FROM THE STATE OF SAXONY MR HEITMANN WAS PICKED BY MR KOHL TWO MONTHS AGO FOR THE LARGELY CEREMONIAL POST IN A THOROUGHLY SYMBOLIC ACT OF POLITICAL INGRATIATION AFTER THREE YEARS OF ECONOMIC HARDSHIP IN EASTERN GERMANY MR KOHL WAS DETERMINED TO GIVE EASTERNERS A SOP BY PUTTING ONE OF THEIR OWN IN THE PRESIDENCY WITH ONLY A BRIEF EXPERIENCE IN PUBLIC LIFE MR HEITMANN WAS ILLPREPARED FOR THE LIMELIGHT IN INTERVIEWS HE STOOD BY EARLIER STATEMENTS THAT AROUSED OUTRAGE IN THE PUBLIC AND UNEASE IN THE RANKS OF MR KOHL'S CHRISTIAN DEMOCRATS WOMEN WHO WANTED FULL SELFREALIZATION SHOULDN'T HAVE CHILDREN MR HEITMANN ARGUED THE FEELINGS OF ORDINARY GERMANS WHO FELT OVERRUN BY FOREIGNERS SHOULD BE ATTENDED TO AND GERMANY HE CLAIMED SHOULDN'T BE FOREVER BURDENED WITH A SPECIAL ROLE BECAUSE OF THE HOLOCAUST HIS REMARKS MANAGED TO EARN HIM THE VOCAL SUPPORT OF GERMANY'S FAR RIGHT ONE OF THE FEW SOURCES OF APPROVAL FOR THE SOFTSPOKEN FORMER LUTHERAN CHURCH OFFICIAL BUT THEY UNLEASHED A BARRAGE OF ATTACKS FROM THOSE WHO SAW MR HEITMANN AS UNWORTHY TO SUCCEED THE CURRENT PRESIDENT RICHARD VON WEIZSAECKER WHO HAS BEEN HIGHLY REGARDED FOR HIS CANDOR ABOUT THE CRIMES OF THE THIRD REICH CRITICS INCLUDED MEMBERS OF MR KOHL'S PARTY THE LEADER OF GERMANY'S JEWISH COMMUNITY AND A RANGE OF WOMEN'S GROUPS IN A STATEMENT YESTERDAY THE CHANCELLOR SAID MR HEITMANN HAD BEEN THE VICTIM OF AN INTOLERABLE CAMPAIGN OF DEFAMATION PARTY INSIDERS HOWEVER CONCEDED THAT MR KOHL WAS KEEN TO STEM THE CRITICISM OF THE UNPOPULAR CANDIDATE AND HAD SIGNALED TO MR HEITMANN THAT IT WAS TIME TO QUIT IN ADDITION TO THE PUBLIC RELATIONS DAMAGE MR KOHL'S BACKING OF MR HEITMANN ALSO FURTHER WEAKENED HIS CREAKY 11YEAROLD COALITION WITH THE FREE DEMOCRATIC PARTY THE FDP HAD REFUSED TO BACK MR HEITMANN IN THE MAY 23 ELECTION IN THE NATIONAL ASSEMBLY A GROUP OF FEDERAL AND STATE LEGISLATORS THAT ELECTS THE PRESIDENT WITHOUT FDP SUPPORT MR HEITMANN'S CANDIDACY WAS THOUGHT TO BE DOOMED TO FALL SHORT OF THE NECESSARY MAJORITY WITH GERMANY ENTERING A YEAR FULL OF COMMUNAL AND STATE ELECTIONS THAT WILL CULMINATE IN NATIONAL CONTEST NEXT FALL MR KOHL MAY NOW BE ONE LIABILITY LIGHTER BUT HE FACES AN INCREASINGLY DIFFICULT TASK OF REVERSING HIS POLITICAL FORTUNES ACCORDING TO A NATIONAL SURVEY RELEASED YESTERDAY BY THE INFAS POLLING GROUP MR KOHL NOW TRAILS HIS SOCIAL DEMOCRAT RIVAL RUDOLF SCHARPING BY 16 PERCENTAGE POINTS ONLY A THIRD OF GERMANS CONSIDER ECONOMIC CONDITIONS IN THEIR COUNTRY TO BE POSITIVE A RECORD LOW ACCORDING TO INFAS THUS MR KOHL'S NEXT NOMINATION FOR THE PRESIDENCY WILL BE ALL THE MORE CLOSELY SCRUTINIZED SAYS KLAUSJUERGEN HEDRICH A CDU PARLIAMENTARIAN AND FORMER HEITMANN SUPPORTER WE CAN'T AFFORD TO MAKE A MISTAKE THIS TIME 9311260085 931126 MATSUSHITA'S US UNIT SEES DROP IN DEMAND BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL SECAUCUS NJ MATSUSHITA ELECTRIC CORP OF AMERICA'S TOP EXECUTIVE EXPECTS AN 8 INCREASE IN THE COMPANY'S US SALES THIS YEAR BUT FORESEES AN INDUSTRYWIDE SLUMP IN THE US CONSUMER ELECTRONICS MARKET BEGINNING SOME TIME NEXT YEAR DESPITE STRONG US SALES OF PRODUCTS SUCH AS CORDLESS PHONES VIDEOCASSETTE RECORDERTELEVISION COMBINATION UNITS AND COMPACT AUDIO SYSTEMS THE EXECUTIVE RICHARD A KRAFT ANTICIPATES A DROP IN CONSUMER DEMAND IN COMING MONTHS MR KRAFT IS PRESIDENT AND CHIEF OPERATING OFFICER OF THE BUSINESS THE US ARM OF MATSUSHITA ELECTRIC INDUSTRIAL CO THE HUGE JAPANESE ELECTRONICS COMPANY BASED ON HIS 20 YEARS WITH MATSUSHITA AND 23 WITH RIVAL COMPANY MOTOROLA INC MR KRAFT SAID HE HAS CONCLUDED THAT THE US CONSUMER ELECTRONICS MARKET RUNS ON FIVEYEAR UPANDDOWN CYCLES I BELIEVE THAT WE ARE PASSING THROUGH THE MOST RECENT PEAK NOW ALTHOUGH YOU REALLY DON'T KNOW THAT YOU'RE OVER IT UNTIL A LITTLE LATER HE PROJECTED DECREASING GROWTH FOR THE NEXT SIX OR EIGHT MONTHS UNTIL SOMEWHERE IN THE MIDDLE OR END OF 1994 WE WILL PASS THROUGH A POINT WHERE SALES WILL BE FALLING BEHIND THE PREVIOUS YEAR THE EXECUTIVE CONCEDES HIS OPINION IS NEITHER COMMON NOR POPULAR IN THE INDUSTRY THE TROUBLE IS THAT PEOPLE TEND TO EXTRAPOLATE THE CURRENT SITUATION AND DON'T RECALL THE CYCLICAL NATURE OF THE INDUSTRY NO ONE THINKS ABOUT IT TURNING DOWN ALTHOUGH MR KRAFT DIDN'T DISCLOSE PROFIT FIGURES FOR THE US UNIT HE SAID THE US OPERATION'S PROFIT IN 1993 WILL MEET BUDGET EXPECTATIONS DESPITE THE PARENT'S RECENT REPORTED DECLINE IN OPERATING PROFIT FOR THE FISCAL SECOND QUARTER SOUTHEAST ASIAN OPERATIONS AND THE US BUSINESS REMAIN BRIGHT SPOTS MR KRAFT SAID LAST WEEK MATSUSHITA ELECTRICAL INDUSTRIAL REPORTED AFTERTAX NET INCOME OF 93 BILLION YEN 856 MILLION FOR THE SEPT 30 PERIOD UP FROM 71 BILLION YEN A YEAR EARLIER BUT CONSOLIDATED SALES WERE DOWN 10 TO 162 TRILLION YEN FROM 180 TRILLION A YEAREARLIER AND OPERATING PROFIT WHICH BY SOME COUNTS IS A BETTER GAUGE OF A COMPANY'S ACTUAL PERFORMANCE AS IT DOESN'T REFLECT CURRENCY GAINS WAS DOWN 32 TO 368 BILLION YEN FROM 539 BILLION A YEAR EARLIER MUCH OF THAT DECLINE IS DUE TO SLUMPING DEMAND IN JAPAN AND EUROPE MR KRAFT SAID DESPITE BETTER RESULTS IN THE US THE AMERICAN UNIT IS GIRDING ITSELF FOR A DIFFICULT 1994 MR KRAFT SAID THE COMPANY EXPECTS TO MAKE SELECTIVE PRICE INCREASES DURING THE YEAR UNTIL NOW THE JAPANESE ELECTRONICS COMPANIES HAVE BEEN ABLE TO DELAY PRICE BOOSTS DESPITE THE HIGHER COSTS IMPOSED BY THE RISING VALUE OF THE YEN 9311260084 931126 MARKETING & MEDIA NEWS CORP VENTURE WITH CHINA MAGAZINE IS BLOCKED BY BEIJING SHANGHAI CHINA REUTER BEIJING HAS BLOCKED A MAGAZINE JOINT VENTURE BY RUPERT MURDOCH DEALING ANOTHER BLOW TO THE AUSTRALIAN TYCOON'S VISION OF PENETRATING CHINA'S MEDIA MARKETS OFFICIALS SAID THURSDAY THE LINKUP BETWEEN SHANGHAI'S STATERUN BETTER LIFE MAGAZINE AND MURDOCH'S NEWS CORP WOULD HAVE MARKED THE FIRST WESTERN INVESTMENT IN A MAINSTREAM PUBLICATION IN CHINA BUT BETTER LIFE EDITOR HU XIAOSHENG SAID BEIJING HAD REJECTED NEWS CORP'S APPLICATION FOR UNDISCLOSED REASONS THEY DID NOT APPROVE THE PROJECT AND DIDN'T SAY WHY MR HU SAID IT SEEMS THAT THE TIME IS NOT YET RIPE IN CHINA FOR THIS KIND OF VENTURE GIVE IT ANOTHER YEAR OR TWO HE DECLINED TO COMMENT FURTHER THE OFFICIAL CHINA DAILY QUOTED MR HU LAST SUMMER AS SAYING NEWS CORP PROPOSED BUYING 50 OF THE LIFESTYLE BIMONTHLY AND THAT EDITORIAL EXCHANGES HAD ALREADY BEGUN HE SAID AT THE TIME THE VENTURE WAS RECEIVING FAVORABLE CONSIDERATION AT THE HIGHEST LEVELS OF THE COMMUNIST PARTY'S PROPAGANDA DEPARTMENT CHINA'S ONLY TWO JOINTVENTURE MAGAZINES WERE APPROVED JUST THIS YEAR DISNEY'S MICKEY MOUSE MAGAZINE AND A SINGAPORE PUBLICATION CALLED XINGGUANG CHINESE LAW PREVIOUSLY BANNED EQUITY PARTICIPATION BY FOREIGNERS IN CHINESE PUBLICATIONS NEGOTIATORS IN THE MURDOCH DEAL THOUGHT THEY HAD FOUND A WINNING FORMULA BY SELLING HALF OF BETTER LIFE'S DISTRIBUTION RIGHTS ABANDONING THE IDEA OF TRANSFERRING ACTUAL EQUITY IN THE MAGAZINE ITSELF SOURCES SAID 9311260083 931126 SHIPPING FIRM WORKERS ARE INDICTED ON CHARGES OF BILKING US NAVY NEWARK NJ THE FORMER CONTROLLER AND FOUR OTHER EMPLOYEES OF A DEFUNCT MARYLAND SHIPPING COMPANY WERE CHARGED WITH BILKING THE US NAVY OF AT LEAST 37 MILLION THROUGH FALSIFIED RECORDS US ATTORNEY MICHAEL CHERTOFF SAID THE 31COUNT INDICTMENT CHARGES THE FIVE EMPLOYEES OF DEFUNCT MSO INC WITH FALSIFYING LABOR RECORDS IN 1989 AND 1990 TO SUPPORT AT LEAST 700000 IN INVOICES SUBMITTED TO A NAVY UNIT FOR REPAIRS TO 10 NAVY OCEANOGRAPHIC SHIPS THE FIVE MSO EMPLOYEES ALSO FALSELY WON MORE THAN 3 MILLION IN PAYMENTS TO VENDORS BY SUBMITTING PHONY INVOICES THE NEWARK US ATTORNEY CHARGED THE NAVY PAID MSO A TOTAL OF 40 MILLION IN 1989 AND 1990 TO OPERATE AND MAINTAIN THE 10 SHIPS THE GOVERNMENT CHARGED FORMER MSO CONTROLLER BARBARA ARCHER 41 YEARS OLD SILVER SPRING MD AND EMPLOYEES PAUL CAUBO 30 BETHESDA MD LESLIE COUCHENOUR 29 BELAIR MD MOSHE LEVY 59 CORAL SPRINGS FLA AND HERBERT PAYAN 28 TEANECK NJ MS ARCHER AND MR CAUBO COULDN'T BE REACHED FOR COMMENT THE OTHER THREE DEFENDANTS DIDN'T RETURN PHONE CALLS SEEKING COMMENT 9311260082 931126 INTERNATIONAL CARGILL TO QUIT MEATPACKING LINE IN JAPAN BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO CARGILL INC IS PULLING OUT OF JAPAN'S MEATPROCESSING BUSINESS AFTER A BOLD DEBUT TWO YEARS AGO FAILED TO MAKE THE US COMMODITIES COMPANY MORE THAN AN ALSORAN CARGILL'S EXPERIENCE SERVES AS A GRIM REMINDER THAT A REDUCTION IN JAPANESE IMPORT BARRIERS THE NATION EASED BARRIERS ON BEEF TWO YEARS AGO DOESN'T GUARANTEE SUCCESS FOR FOREIGN BUSINESSES SEEKING TO TAP JAPAN'S HUGE CONSUMER MARKET A CARGILL SPOKESMAN SAID THE COMPANY SOLD ITS MAJORITY STAKE IN A BEEFPROCESSING AND DISTRIBUTION FACILITY EAST OF TOKYO TO NIPPON MEAT PACKERS INC ONE OF JAPAN'S BIGGEST MEATPACKERS AND THE DOMINANT COMPANY IN THE DOMESTIC DISTRIBUTION NETWORK FOR IMPORTED BEEF HOWEVER CARGILL WILL MAINTAIN EVEN BOOST ITS EFFORTS TO SELL IMPORTED BEEF TO JAPANESE DEALERS THE SPOKESMAN SAID STILL CARGILL'S WITHDRAWAL FROM THE RETAIL MARKET IS A SIGN OF A SHAKEOUT RUMBLING THROUGH JAPAN'S DOMESTIC MEAT INDUSTRY AND AN INDICATION THAT EVEN SAVVY OVERSEAS COMPETITORS STILL ARE FINDING JAPAN A TOUGH PLACE TO MASTER COMPETITION IS INTENSIFYING AND MARGINS ARE BEING SQUEEZED AMONG DOMESTIC MEAT DEALERS SAID SHUICHI SHIBANUMA AN ANALYST AT MORGAN STANLEY IT'S THE SURVIVAL OF THE FITTEST CARGILL'S MOVE ALSO COMES JUST AS THE JAPANESE SEEM TO BE ACQUIRING A TASTE FOR IMPORTED BEEF JAPAN'S MINISTRY OF AGRICULTURE SAID BEEF IMPORTS LAST YEAR SURPASSED DOMESTIC BEEF PRODUCTION FOR THE FIRST TIME ON RECORD THE STRONG YEN ALSO IS BOLSTERING JAPANESE CONSUMERS' ABILITY TO PAY FOR IMPORTS HOWEVER PROCESSING AND GETTING SUCH PRODUCTS TO MARKET REMAINS A COSTLY MATTER IN JAPAN AND THOSE WHO SUCCEED IN THE BUSINESS ARE MAKING HUGE INVESTMENTS NIPPON MEAT PACKERS THE COMPANY THAT IS BUYING CARGILL'S MEATPROCESSING FACILITY HAS SET UP A SYSTEM THAT GETS CUSTOMIZED BEEF ORDERS TO RESTAURANTS AND SUPERMARKETS ACROSS MOST OF JAPAN WITHIN 24 HOURS OF CLEARING CUSTOMS A NIPPON MEAT SPOKESMAN SAID HIS COMPANY BEGAN LONG AGO TO BUILD UP THE SYSTEM SO AS TO KEEP AN EDGE WHEN CHEAP BEEF IMPORTS STARTED FLOODING THE MARKET INDEED WE USED THE SYSTEM AS A WEAPON THE SPOKESMAN SAID MR SHIBANUMA OF MORGAN STANLEY ESTIMATES THAT IF CARGILL WANTED TO COMPETE BY CREATING ITS OWN SYSTEM IT WOULD COST AS MUCH AS 30 BILLION YEN 276 MILLION AND TAKE AT LEAST FIVE YEARS TO SET UP WHEN CARGILL LAUNCHED ITS BID TO BECOME A PLAYER IN THE DOMESTIC BEEFPROCESSING MARKET JAPAN'S NIHON KEIZAI SHIMBUN NEWSPAPER QUOTED AN EXECUTIVE AS SAYING HIS COMPANY SOUGHT 30 OF THE MARKET A CARGILL SPOKESMAN DECLINED TO COMMENT ON REASONS FOR THE SALE TO NIPPON MEAT THIS ISN'T A CASE OF A FOREIGN COMPETITOR BEING KEPT OUT BY A TRADE BARRIER BUT A CASE WHERE DOMESTIC FIRMS MADE EFFORTS TO STAY COMPETITIVE IN A TOUGH MARKET MR SHIBANUMA SAID FEW FOREIGN FIRMS ARE LIKELY TO HAVE THE WILL TO STAY IN SUCH A MARKET HE SAID IN THE END THE BIGGEST HURDLE TO CRACKING THE MARKET COMES FROM THE COMPETITION WHICH IS WILLING TO CUT PRICES LOWER MARGINS AND EVEN TAKE A LOSS TO STAY IN THE MARKET THE BIG JAPANESE COMPANIES ARE TRYING TO PRESERVE THEIR SHARE SAID TAKEFUMI SUZUKI AN ANALYST AT BARING SECURITIES YOU HAVE TO HAVE AN EXTREMELY LONGRANGE PLAN IN ORDER TO SURVIVE 9311260081 931126 INTERNATIONAL BRIEF NESTLE SA SLUGGISH EUROPEAN ECONOMY WILL SLOW NET SALES GROWTH THE SLUGGISH EUROPEAN ECONOMY MIGHT LEAVE ITS MARK ON SWISS FOOD GROUP NESTLE SA'S BUSINESS PERFORMANCE FOR 1993 SAID HELMUT O MAUCHER CHAIRMAN AND CHIEF EXECUTIVE OFFICER ABOUT HALF OF NESTLE'S SALES COME FROM EUROPE MR MAUCHER SAID HE EXPECTS BOTH NET INCOME AND SALES TO RISE 5 IN 1993 FROM 27 BILLION SWISS FRANCS 181 BILLION AND 545 BILLION FRANCS RESPECTIVELY IN 1992 LAST YEAR NET ROSE 92 FROM 1991 AND GROUP SALES INCREASED 79 MANY ANALYSTS HAVE BEEN FORECASTING PROFIT GROWTH OF 7 TO 9 NESTLE REPORTED CONSOLIDATED SALES ROSE 52 DURING THE FIRST 10 MONTHS OF 1993 TO 466 BILLION FRANCS FROM 443 BILLION FRANCS IN THE YEAREARLIER PERIOD WHEN THE GROWTH RATE WAS 83 9311260080 931126 YOUR MONEY MATTERS WEEKEND REPORT SHOPPING TIP DON'T PUT THE BUDGET ON HOLIDAY BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL ATTENTION KMART SHOPPERS AND THOSE OF YOU HEADING OFF TO MACY'S LIMITED TOYS R US AND CIRCUIT CITY TOO TODAY IS THE TRADITIONAL START OF THE HOLIDAY SHOPPING SEASON AND ONE OF THE BIGGEST DAYS OF THE YEAR FOR RETAILERS OF ALL KINDS IT IS ALSO A DAY THAT CAN EASILY TURN INTO BLACK FRIDAY FOR THE FAMILY BUDGET EVEN PEOPLE WHO CAN POINT WITH PRIDE TO GROWING 401K BALANCES AND BURGEONING COLLEGE FUNDS CAN REGRESS TO '80SSTYLE INDULGENCE WHEN IT COMES TO SPENDING FOR THE HOLIDAYS PEOPLE THINK OF CHRISTMAS AS A TIME TO MAKE UP FOR WHAT THEY DIDN'T GIVE OR GET DURING THE YEAR SAYS OLIVIA MELLAN A PSYCHOTHERAPIST WHO SPECIALIZES IN MONEY ISSUES SO IT'S HARDER TO ACT SANE AND RATIONAL AND BUDGET YOURSELF INDEED FOR MANY PEOPLE FEVERISH HOLIDAY SPENDING COMPLETELY WRECKS ANY BUDGET THEY MIGHT HAVE HAD AND IT TAKES THEM MONTHS TO RECOVER SAYS FLORA WILLIAMS ASSOCIATE PROFESSOR AT PURDUE UNIVERSITY'S DEPARTMENT OF CONSUMER SCIENCES AND RETAILING JUST ASK CRYSTAL EDDY AND HER HUSBAND JASON BOTH 28 FOR SEVERAL YEARS THE PORTLAND ORE COUPLE RAN UP CHRISTMAS CREDITCARD BILLS THAT TOOK THEM WELL INTO SUMMER TO PAY OFF I BEGAN TO RESENT THE DEBT BY AROUND APRIL SAYS MRS EDDY WHO OWNS A HOUSECLEANING BUSINESS THREE YEARS AGO SHE AND HER HUSBAND A CHILDREN'S PASTOR DECIDED TO GIVE UP USING CREDIT CARDS AND INSTEAD RELY ON CASH AND INGENUITY TO FULFILL A 22PERSON GIFT LIST THIS CHRISTMAS THEY WILL HAVE ABOUT 600 TO SPEND FROM FUNDS THEY'VE SAVED SINCE JULY AND WILL GIVE SOME GIFTS THAT COST THEM NEXT TO NOTHING SUCH AS BABYSITTING IOUS OR HOMEMADE CRAFTS PEOPLE TRYING NOT TO FEEL BULLDOZED BY UNCONTROLLED SPENDING OR DEBT THIS CHRISTMAS OR HANUKKAH SHOULD MAP OUT A SHOPPING STRATEGY NOW PLANNERS SAY BY SETTING UP A DETAILED GIFT LIST AND BUDGET THINKING AHEAD FOR ALTERNATIVES TO PRICEY GIFTS AND USING DEBT SMARTER SOME SHOPPERS CAN AVOID MAKING HOLIDAY SPENDING A YEARLONG ORDEAL THE FIRST STEP FINANCIAL PLANNERS SAY IS TO SIT DOWN AND WRITE OUT A PERSONAL BALANCE SHEET GETTING ALL OF YOUR DEBTS DOWN IN BLACK AND WHITE THAT MIGHT BE A WAKEUP CALL THAT YOU NEED A TIGHT HOLIDAY BUDGET SAYS EDWARD DEMPSEY A FINANCIAL PLANNER WITH IDS FINANCIAL SERVICES IN ALBANY NY NEXT COMES A DETAILED GIFT LIST WHICH PLANNERS SAY IS THE BEST SHIELD FOR WEAKWILLED SHOPPERS THE LIST SHOULD NAME EVERYONE FOR WHOM YOU WILL BE BUYING HOW MUCH YOU ARE GOING TO SPEND PER PERSON AND WHICH STORES HAVE THE LOWEST PRICES FOR SPECIFIED GIFTS FOR SOME PEOPLE HOLIDAY BUDGETING COULD MEAN DROPPING SOME NAMES FROM THEIR GIFT LIST MADELEINE AUGER A 45YEAROLD PAPERCOMPANY CUSTOMERSERVICE REPRESENTATIVE HAS HAD TO STOP EXCHANGING GIFTS WITH NEARLY A DOZEN RELATIVES AS HER FAMILY'S GIFT LIST MUSHROOMED OVER THE YEARS WE USED TO GIVE GIFTS TO COUSINS AUNTS AND UNCLES SHE SAYS WE DON'T DO THEM ANYMORE INSTEAD MS AUGER HER HUSBAND AND FOUR GROWN CHILDREN HAVE CHRISTMAS EVE DINNER WITH THE EXTENDED FAMILY NOW WE SPEND TIME TOGETHER SHE SAYS STICKING TO A PRESET LIST COULD HELP PEOPLE AVOID A TRAP THAT USED TO CATCH JAY GROSS A 29YEAROLD SCHOOLTEACHER IN MOUNT PLEASANT MICH MR GROSS SAYS HE WOULD ALWAYS SET A 50APERSON LIMIT FOR THE SIX PEOPLE ON HIS CHRISTMAS LIST BUT I'D SHOP IN A RUSH YOU KNOW SEE THINGS IN STORES I KNOW SOMEONE WOULD LIKE HE RECALLS NEXT THING YOU KNOW I'M UP AROUND TWO GRAND FOR SOME PEOPLE ON YOUR LIST A GIFT THAT REQUIRES YOUR TIME MIGHT BE MORE APPRECIATED THAN AN EXPENSIVE STOREBOUGHT GIFT MR AND MRS EDDY FOR INSTANCE FOUND THAT GIVING A WEEKEND OF BABYSITTING FOR HER TWO NEPHEWS WAS A BIG HIT MY BROTHER AND SISTERINLAW JUST LOVED IT MRS EDDY SAYS AND CLEANING OUT HER PARENT'S GARAGE A DREADED CHORE HAD AN ADDED BONUS SAYS MRS EDDY MY HUSBAND AND I DID IT TOGETHER WHICH WAS VERY NICE IN OTHER CASES BUYING ONE GIFT FOR A FAMILY INSTEAD OF SEPARATE ITEMS FOR EACH FAMILY MEMBER CAN BE A GOOD WAY TO SAVE RATHER THAN BUYING FOUR MOREEXPENSIVE PRESENTS FOR INSTANCE THE EDDYS BOUGHT HER BROTHER SISTERINLAW AND TWO NEPHEWS A 35 ZOO PASS PLUS SOME SMALL TOKEN GIFTS FOR THE BOYS THEY REALLY LIKED THAT SAYS MRS EDDY AFTER SHOPPERS HAVE WHITTLED THEIR LIST AS MUCH AS POSSIBLE THEY SHOULD SHOP AS SMART AS THEY'VE PLANNED WHEN THEY FINALLY HIT THE MALLS ADVISERS SAY EVEN THOSE WHO DESPISE HOLIDAY SHOPPING CROWDS FOR INSTANCE SHOULDN'T PUT OFF BUYING UNTIL THE LAST MINUTE ADVISERS CAUTION IT IS TOO EASY FOR 11THHOUR BUYERS TO SIMPLY RESORT TO PICKING UP THE FIRST VCR OR VIDEO CAMERA THEY SEE WHEN THEY SHOP UNDER DEADLINE BUDGETING BECOMES SECONDARY IF YOU SHOP AT THE LAST MINUTE MR DEMPSEY SAYS PEOPLE WHO NEGLECTED THEIR CHRISTMAS CLUB CONTRIBUTIONS THIS YEAR AND WILL HAVE TO USE CREDIT SHOULD AT LEAST USE LOWRATE CARDS AND AVOID DEPARTMENTSTORE CREDIT ADVISERS SAY MOST DEPARTMENT STORE CARDS START AT AN 18 INTEREST RATE AND GO UP FROM THERE SAYS GERRI DETWEILER EXECUTIVE DIRECTOR OF BANKCARD HOLDERS OF AMERICA A CONSUMER GROUP IN HERNDON VA IT'S NOT UNUSUAL TO HAVE A 22 INTEREST RATE SHE ADDS RETAILERS' DEFERREDBILLING PLANS AREN'T MUCH BETTER ADVISERS ADD UNLESS PEOPLE ARE CERTAIN THEY'LL PAY THE BALANCE WHEN THE BILLS ARRIVE IN FEBRUARY OR MARCH OTHERWISE STORES WILL OFTEN CHARGE INTEREST RATES AS HIGH AS 22 ON THE BALANCE RETROACTIVE TO THE TWO OR THREEMONTH DEFERRAL PERIOD INSTEAD MANY CREDITCARD USERS CAN TAKE ADVANTAGE OF THE CURRENT MARKETING BLITZ FOR LOWRATE CARDS IF THEY HAVEN'T ALREADY IF YOU DON'T HAVE A CARD NOW THAT IS LESS THAN 13 OR 14 MS DETWEILER SAYS APPLY FOR IT NOW SO THAT YOU'LL HAVE THE CARD IN HAND IN JANUARY WHEN THE BILLS COME DUE YOU CAN SIMPLY HAVE YOU HOLIDAY CREDIT BALANCES TRANSFERRED WHEN THE NEW CARD ARRIVES SHE SAYS COME NEXT YEAR SUCH BUYERS SHOULD TRY TO BREAK THE CYCLE OF BUYING ON CREDIT ADVISERS SAY IF THERE IS NO WAY TO AVOID GOING INTO DEBT THIS YEAR PAY IT OFF AS SOON AS POSSIBLE NEXT YEAR SAYS PEG DOWNEY A FEEONLY FINANCIAL PLANNER IN SILVER SPRING MD AFTER CLEARING THEIR BALANCE PEOPLE SHOULD START STASHING MONTHLY AMOUNTS INTO A SAVINGS ACCOUNT EARMARKED FOR NEXT YEAR'S PRESENTS ADVISERS ALSO RECOMMEND THAT PEOPLE SPREAD THEIR HOLIDAY BUYING OUT ALL YEAR LONG SO THEY ARE MORE LIKELY TO BUY ITEMS THAT ARE ON SALE USE CASH INSTEAD OF A CREDIT CARD AND MAKE REASONED CHOICES FINALLY PEOPLE SHOULD SIMPLY ADMIT TO THEMSELVES THAT HOLIDAY SPENDING IS THEIR BIGGEST FISCAL WEAKNESS AND BUDGET FOR IT IN THEIR OVERALL FINANCIAL PLANNING AFTER A FINANCIAL PLANNER PUT MEL AND LINDA HOUCK ON A WATCHEVERYDOLLAR BUDGET THE COUPLE SAYS HOLIDAYS ARE BETTER THAN EVER BECAUSE THEY ARE ABLE TO BUY THEIR GIFTS WITH CASH WE ARE NOT IN DEBT AFTER CHRISTMAS NOW SAYS MR HOUCK A 53YEAROLD CONCRETE PLANT MANAGER FROM EDMORE MICH ADDS MRS HOUCK 46 A BOOKKEEPER WITH THE SAME COMPANY NOW IF WE CAN'T PAY FOR IT WE AREN'T GOING TO BUY IT 9311260079 931126 FOREIGN EXCHANGE DOLLAR GAINS IN THIN TRADING ABROAD ANOTHER QUIET SESSION EXPECTED TODAY SPECIAL TO THE WALL STREET JOURNAL LONDON THE DOLLAR ROSE IN HOLIDAYTHINNED TRADING THE US CURRENCY WAS QUOTED AT 17083 MARKS IN LONDON YESTERDAY UP FROM 17023 MARKS IN NEW YORK LATE WEDNESDAY WITH THE US MARKET CLOSED YESTERDAY FOR THANKSGIVING TRADERS IN LONDON SAID THE GAIN WAS PROBABLY EXAGGERATED BY THE LACK OF VOLUME THERE'VE BEEN A FEW BUYERS OF DOLLARS AND THAT'S HELPED PUSHED THE CURRENCY BUT VOLUMES ARE VERY THIN IT DOESN'T TAKE MUCH ON A DAY LIKE THIS TO MAKE AN IMPRESSION ON THE CURRENCY RATES A DEALER SAID THE DOLLAR ALSO WAS QUOTED AT 10830 YEN IN LONDON UP FROM 10818 YEN IN NEW YORK THE DAY BEFORE THE DEALER PREDICTED ANOTHER QUIET DAY TODAY AS MOST MARKET PARTICIPANTS IN THE US USUALLY EXTEND THE THANKSGIVING HOLIDAY ON THURSDAY INTO A FOURDAY WEEKEND ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10838 YEN AND AT 17085 MARKS THE BUNDESBANK GERMANY'S CENTRAL BANK PROVIDED PLENTY OF FODDER FOR THE MARKETS YESTERDAY WITH VARIOUS OFFICIALS MAKING STATEMENTS ABOUT INTERESTRATE POLICY AND CURRENCIES ITS CHIEF ECONOMIST OTMAR ISSING WARNED THAT FORCED RATE CUTS AND THE SUBSEQUENT DEVALUATION OF THE MARK WOULD HURT RATHER THAN HELP THE GERMAN ECONOMY CENTRAL BANK VICE PRESIDENT JOHANN WILHELM GADDUM HOWEVER SAID THAT CONDITIONS IN GERMANY NOW SEEM TO ALLOW MANEUVERING ROOM FOR FURTHER DECLINES IN INTEREST RATES THE COMMENTS BY THE OFFICIALS FOLLOWED A STATEMENT BY THE BUNDESBANK PRESIDENT HANS TIETMEYER ON WEDNESDAY THAT THE CENTRAL BANK MUST ACT WITH INCREASING CAUTION AS IT EXPLORES ROOM FOR FURTHER INTERESTRATE MOVES 9311260078 931126 VW TRIMMING WORKERS' WEEK TO FOUR DAYS GROUNDBREAKING AGREEMENT WITH LABOR IS AIMED AT SAVING 30000 JOBS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BONN VOLKSWAGEN AG AND LABOR REPRESENTATIVES AGREED ON A GROUNDBREAKING PLAN THAT WILL INTRODUCE A FOURDAY WORKWEEK AT EUROPE'S LARGEST CAR MAKER IN AN EFFORT TO PREVENT OR AT LEAST DELAY MASSIVE LAYOFFS UNDER THE AGREEMENT WHICH COVERS 1994 AND 1995 100000 VW WORKERS IN GERMANY WILL WORK FEWER HOURS AND RECEIVE LESS PAY IN EXCHANGE FOR JOB SECURITY VW HAD WARNED THAT WITHOUT SUCH A PACT IT WOULD HAVE HAD TO LAY OFF 30000 WORKERS WITH RAPIDLY GROWING UNEMPLOYMENT ONE OF THE BIGGEST CONCERNS IN RECESSIONHIT GERMANY AND THROUGHOUT MOST OF THE EUROPEAN COMMUNITY VW'S PACT WITH LABOR STRUCK A DEEP CHORD WITH POLITICIANS LABOR LEADERS AND WORKERS ACROSS THE CONTINENT WITHIN HOURS OF ITS ANNOUNCEMENT OSKAR LAFONTAINE DEPUTY CHIEF OF GERMANY'S OPPOSITION SOCIAL DEMOCRATIC PARTY HAILED THE PACT AS A MODEL FOR OTHER COMPANIES THE PARTY HAS DECLARED EMPLOYMENT ITS NO 1 CAMPAIGN ISSUE FOR 1994 WHICH WILL SEE 19 STATE AND LOCAL ELECTIONS KLAUS ZWICKEL NATIONAL PRESIDENT OF GERMANY'S IG METALL UNION PRAISED THE PACT AS AN INTELLIGENT SOLUTION THAT AVOIDED THE HORRIBLE ALTERNATIVE OF LOSING NEARLY A THIRD OF VW'S GERMAN WORK FORCE THE NEWS WAS WELCOMED ON THE FRANKFURT STOCK MARKET WHERE VW SHARES SURGED 950 MARKS 558 OR 24 TO 412 MARKS THE PACT STEMS FROM VW'S FINANCIAL TROUBLES INTENSE LOCAL POLITICAL PRESSURE TO PRESERVE JOBS AND COMPANY CONSIDERATIONS THAT MAKE GOOD RELATIONS WITH LABOR REPRESENTATIVES A HIGHER PRIORITY THAN USUAL WHILE THE PLAN GUARANTEES JOBS FOR THE SHORT TERM IT DOESN'T ADDRESS VW'S FUNDAMENTAL STRUCTURAL PROBLEMS OF OVERCAPACITY INEFFICIENT PRODUCTION LINES AND OVERSTAFFING INDUSTRY OBSERVERS SAID CERTAINLY FOR THE SHORT TERM IT IS HELPFUL FOR THE COMPANY BECAUSE THEY WILL HAVE LOWER PERSONNEL EXPENSES BUT AT BEST IT'S A TEMPORARY SOLUTION TO TRY TO WIN A DEGREE OF PEACE WITHIN THE COMPANY WHILE HOPING FOR A BETTER FUTURE BUT EVENTUALLY THEY WILL HAVE TO FIND A SOLUTION FOR THE FACT THAT THEY'VE GOT 30 TOO MANY PEOPLE SAID KARSTEN RAHLS CHIEF AUTO INDUSTRY ANALYST AT MM WARBURG BANK INVESTMENT RESEARCH IN HAMBURG AS POSITIVELY AS THE STOCK MARKET REACTED TODAY THE BITTER TRUTH IS THAT INVESTORS WOULD HAVE BEEN EVEN MORE ENCOURAGED IF VW WERE FORCED TO FIRE 30000 PEOPLE THE FOURDAY 72HOURADAY WORKWEEK WILL BEGIN JAN 1 A 20 DECREASE IN THE NUMBER OF HOURS WORKED AND IN BASE PAY A BASKET OF CONCESSIONS AND BONUS REDISTRIBUTIONS WAS ASSEMBLED TO KEEP MONTHLY PAYCHECKS AT 1993 LEVELS THE ESSENTIAL POINTS OF THE DEAL INCLUDED THE UNION'S AGREEMENT TO FORGO A 35 INCREASE SCHEDULED TO TAKE EFFECT NOV 1 1993 AND TO ACCEPT A 1 RAISE EFFECTIVE JAN 1 INSTEAD OF HOLDING PAYRAISE TALKS SCHEDULED FOR AUGUST 1994 VW WILL MOVE UP THE TIMETABLE ON ITS AGREEMENT TO SHORTEN THE STANDARD WORKWEEK TO 35 HOURS FROM 37 HOURS WITHOUT A PAY CUT EFFECTIVELY BOOSTING THE HOURLY PAY RATE IT WILL OFFER PAY INSTEAD OF UNPAID PERSONAL DAYS AND REPLACE LUMPSUM PAYMENTS FOR TRADITIONAL BONUSES WHICH AMOUNT TO ABOUT TWO MONTHS' PAY WITH INCREMENTAL PAYOUTS OVER 12 MONTHS THE RESULT IS A RATHER OPAQUE AGREEMENT THAT HAS THE ADVANTAGE OF LETTING ALL SIDES CLAIM THEY ACHIEVED THEIR AIMS IN NEGOTIATIONS WHILE STRESSING THE SHOW OF SOLIDARITY TO PRESERVE JOBS A VW SPOKESMAN CLAIMED THE PLAN WILL SAVE THE COMPANY A NEAT 18 BILLION MARKS OF THE ROUGHLY 10 BILLION MARKS IT SPENDS ON PERSONNEL AND THAT THIS WILL MAKE A SIZABLE CONTRIBUTION TO ITS EFFORTS TO CLAW ITS WAY BACK INTO THE BLACK FOR THE FIRST NINE MONTHS VW HAD A LOSS OF 153 BILLION MARKS ON 56 BILLION MARKS IN SALES A YEAR EARLIER IT HAD A PROFIT OF 549 MILLION MARKS ON SALES OF 636 BILLION MARKS MEANWHILE IG METALL AND THE VW WORKS' COUNCIL COMPOSED OF LABOR REPRESENTATIVES FROM THE FACTORIES COULD TELL WORKERS THAT THEY HAD WON AN UNCHANGED MONTHLY PAYCHECK IMPORTANT FOR DETERMINING SOCIAL SECURITY BENEFITS AND HEALTH INSURANCE PAYMENTS AND THAT ANNUAL COMPENSATION WOULD FALL ONLY 10 THE DEAL MUST BE APPROVED BY THE IG METALL'S CENTRAL WAGE COMMISSION SCHEDULED TO MEET MONDAY AND BY VW'S MANAGEMENT BOARD MAJOR PROBLEMS AREN'T EXPECTED WHEN THERE IS LESS WORK TO GO AROUND ONE MUST USE SOLIDARITY TO SPREAD IT OUT OVER MANY SHOULDERS SAID BERND SUDHOLT ASSISTANT CHAIRMAN OF THE VW WORKS COUNCIL AND A NEGOTIATING COMMITTEE MEMBER THE STRONG HAND OF LOCAL GOVERNMENT IN VW MANAGEMENT IS BOOSTING THE COMPANY'S MOTIVATION TO ACCEPT SUCH A DEAL DESPITE ECONOMISTS' WORRIES THAT SHORTENED WORKWEEKS DON'T CUT COSTS ENOUGH AND THAT WORKERS' REDUCED PURCHASING POWER WILL FURTHER DRAG ATTEMPTS AT A CONSUMPTIONFUELED RECOVERY THE LOWER SAXONY GOVERNMENT IS VW'S LARGEST SINGLE SHAREHOLDER WITH A 20 STAKE GERHARD SCHROEDER ITS SOCIAL DEMOCRATIC MINISTER PRESIDENT IS ONE OF THE VW'S SUPERVISORY BOARD STRONGER MEMBERS WITH VW AS LOWER SAXONY'S LARGEST EMPLOYER MR SCHROEDER WHO IS UP FOR REELECTION NEXT YEAR CAN'T AFFORD TO HAVE VW PUT 30000 VOTERS INTO THE RANKS OF THE UNEMPLOYED 9311260077 931126 BUSINESS BRIEF CHEMICAL BANKING CORP FED GIVES APPROVAL FOR UNIT TO DEAL IN EQUITY SECURITIES THE FEDERAL RESERVE BOARD APPROVED CHEMICAL BANKING CORP'S APPLICATION TO UNDERWRITE AND DEAL IN EQUITY SECURITIES THROUGH ITS CHEMICAL SECURITIES INC SUBSIDIARY THE PRODUCTS CHEMICAL SECURITIES WILL BE ALLOWED TO HANDLE INCLUDE COMMON STOCK PREFERRED STOCK AMERICAN DEPOSITARY RECEIPTS OPTIONS AND LIMITEDPARTNERSHIP UNITS THE APPROVAL BRINGS TO 11 THE NUMBER OF BANKING COMPANIES THAT HAVE AUTHORITY TO SELL EQUITIES NEW YORKBASED CHEMICAL WITH CONSOLIDATED ASSETS OF 1494 BILLION OPERATES SUBSIDIARIES IN NEW YORK NEW JERSEY DELAWARE AND TEXAS EARLIER THIS YEAR CHEMICAL SECURITIES RECEIVED APPROVAL TO SELL DEBT SECURITIES 9311260076 931126 BANK IN HONG KONG TO SELL 10YEAR NOTES HONG KONG HONGKONG & SHANGHAI BANKING CORP WILL SELL THREE BILLION HONG KONG DOLLARS US3884 MILLION OF 10YEAR SUBORDINATED NOTES REFLECTING THE BANKING INDUSTRY'S THIRST FOR HONG KONG DOLLARS WITH WHICH TO SATISFY STRONG DEMAND FOR LOANS THE NOTES WILL BE THE FIRST THAT HONGKONG BANK A UNIT OF HSBC HOLDINGS PLC HAS ISSUED SINCE IT SOLD US12 BILLION OF PERPETUAL FLOATINGRATE NOTES IN 1986 SLOW DEPOSIT GROWTH AT BANKS IN HONG KONG HAS LEFT MANY OF THE TERRITORY'S FINANCIAL INSTITUTIONS SHORT OF HONG KONG DOLLARS TO LEND WHILE HONGKONG BANK REMAINS A NET LENDER IN THE INTERBANK MARKET ANALYSTS SAY IT IS ACTING TO ENSURE THAT IT WILL HAVE AMPLE HONG KONG DOLLARDENOMINATED LIABILITIES AGAINST WHICH TO MAKE LOANS IN YEARS TO COME THE NOTES WILL PAY INTEREST QUARTERLY AT A RATE EQUAL TO THE THREEMONTH HONG KONG INTERBANK OFFERED RATE OR HIBOR PLUS 025 PERCENTAGE POINT HIBOR THE RATE AT WHICH BANKS HERE LEND TO ONE ANOTHER CURRENTLY STANDS AT AROUND 3625 FOR THREEMONTH FUNDS BUT THE NOTES ARE COLLARED MEANING THAT HOLDERS ARE GUARANTEED A MINIMUM ANNUAL INTEREST RATE OF 7 AND WON'T EARN MORE THAN 9 EVEN IF INTEREST RATES RISE SHARPLY THE ISSUE HAS BEEN UNDERWRITTEN BY WARDLEY LTD A SUBSIDIARY OF HONGKONG BANK AN APPLICATION IS BEING MADE TO LIST THE NOTES ON THE HONG KONG STOCK EXCHANGE 9311260075 931126 FINANCING BUSINESS ISIS PHARMACEUTICALS INC ISIS PHARMACEUTICALS INC CARLSBAD CALIF SAID IT AGREED TO A PRIVATE PLACEMENT OF 177 MILLION IN COMMON STOCK THAT WILL BOOST SHARES OUTSTANDING BY ABOUT 17 THE COMPANY SAID THE PENDING PLACEMENT WITH INSTITUTIONAL AND PRIVATE INVESTORS INCLUDING MEMBERS OF ITS BOARD WAS ARRANGED AT 650 A SHARE INDICATING THE ISSUE OF 27 MILLION SHARES ISIS CURRENTLY HAS ABOUT 156 MILLION SHARES OUTSTANDING COMPLETION OF THE TRANSACTION IS SUBJECT TO SECURITIES AND EXCHANGE COMMISSION REGISTRATION OF THE STOCK ISIS SAID PROCEEDS WILL BE USED TO FUND DEVELOPMENT OF EXPERIMENTAL DRUGS FOR GENITAL WARTS AND RETINITIS IN ACQUIRED IMMUNE DEFICIENCY SYNDROME PATIENTS AS WELL AS FOR OTHER CORPORATE PURPOSES 9311260074 931126 PENINSULAR & ORIENTAL SWIRE ACQUIRE HALF OF CHINESE TERMINAL A WALL STREET JOURNAL NEWS ROUNDUP HONG KONG PENINSULAR & ORIENTAL STEAM NAVIGATION CO OF THE UK AND SWIRE PACIFIC LTD OF HONG KONG PURCHASED HALF OF THE SHEKOU CONTAINER TERMINAL IN SOUTHERN CHINA FOR 615 MILLION HONG KONG DOLLARS US796 MILLION CHINA MERCHANTS HOLDINGS LTD AND CHINA OCEAN SHIPPING CO BOTH STATEOWNED COMPANIES REDUCED THEIR HOLDINGS IN THE CONTAINERHANDLING FACILITY TO 325 AND 175 RESPECTIVELY P&O AND SWIRE EACH WILL HOLD A 25 STAKE IN THE FACILITY NEAR SHENZHEN IT IS THE LARGEST FACILITY BETWEEN HONG KONG AND CANTON THAT CURRENTLY HANDLES CONTAINERIZED FREIGHT THE ACQUISITION MARKS SWIRE'S REENTRY INTO CHINA FOLLOWING A 40YEAR ABSENCE ACCORDING TO CHAIRMAN PETER SUTCH HE SAID MONDAY THE ACQUISITION REESTABLISHES OUR TRADITIONAL BUSINESS OF SHIPPING SWIRE ALSO OWNS ABOUT 13 OF MODERN TERMINALS LTD WHICH OPERATES CONTAINERHANDLING TERMINALS IN HONG KONG AND HAS INTERESTS IN AVIATION THROUGH CATHAY PACIFIC AIRWAYS AS WELL AS PROPERTY AND BOTTLING THE INVESTMENT IN SHEKOU IS P&O'S FIRST FORAY INTO CHINA'S GROWING CONTAINERTERMINAL BUSINESS AND IS THE FIRST IN A SERIES OF PLANNED ACQUISITIONS IN ACCORDANCE WITH OUR STRATEGIC EXPANSION IN ASIA SAID LORD STERLING CHAIRMAN OF THE GROUP STARTING IN JANUARY P&O WILL MANAGE BERTHS NOS 1 AND 2 AT THE SHEKOU PORT WHICH IS ON THE EASTERN SHORE OF THE PEARL RIVER ESTUARY THE TWO BERTHS HAVE TOTAL ANNUAL THROUGHPUT OF 550000 TONEQUIVALENT UNITS P&O ALSO HAS AN OPTION TO ACQUIRE A SHARE IN THE DEVELOPMENT OF BERTHS NOS 3 AND 4 WHICH ARE IN THE PLANNING STAGE AND SHOULD BE OPERATIONAL IN LATE 1996 THE ADDITIONAL BERTHS WOULD BRING SHEKOU'S ENTIRE ANNUAL THROUGHPUT UP TO 12 MILLION TONEQUIVALENT UNITS IAN MOULLEN MANAGING DIRECTOR OF P&O ASIA LTD SAID P&O WILL MOVE TWO EXECUTIVES FROM SYDNEY TO SHEKOU EARLY NEXT YEAR TO TAKE OVER MANAGEMENT OF THE PORT 9311260073 931126 POLITICS & POLICY BRADY BILL'S PASSAGE ILLUSTRATES GROWTH OF POLITICAL CONCERN OVER VIOLENT CRIME BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESSIONAL APPROVAL OF THE BRADY GUNCONTROL BILL DEMONSTRATES GROWING POLITICAL CONCERN OVER VIOLENT CRIME AND CAPS A SIXYEAR CAMPAIGN FOR THE LEGISLATION AFTER REPUBLICAN RESISTANCE COLLAPSED ON THE EVE OF THE THANKSGIVING RECESS THE SENATE PASSED THE BILL ON A VOICE VOTE AND SENT THE BILL WEDNESDAY TO PRESIDENT CLINTON WHO IS EXPECTED TO SIGN THE MEASURE INTO LAW NEXT WEEK THE FINAL MEASURE MANDATES A BACKGROUND CHECK ON HANDGUN BUYERS AND A WAITING PERIOD OF AS LONG AS FIVE DAYS TO FACILITATE THIS REVIEW OF CRIMINAL RECORDS THE PROVISIONS TAKE EFFECT 90 DAYS AFTER BECOMING LAW AND WILL REMAIN IN PLACE FOR AS LONG AS FIVE YEARS AS EFFORTS ARE MADE TO DEVELOP A NATIONAL COMPUTER NETWORK TO EXPEDITE CHECKS ON GUN PURCHASERS INTRODUCED IN CONGRESS IN 1987 THE LANDMARK LEGISLATION HAS STIRRED SUCH EMOTIONS SINCE THEN THAT THE PUBLIC MAY EXPECT TOO MUCH FROM THE REGULATIONS THE PRESIDENT AND ATTORNEY GENERAL JANET RENO EMPHASIZED THIS POINT IN REMARKS WEDNESDAY AND MR CLINTON DESCRIBED THE BILL AS ONLY A BEGINNING IN WHAT MUST BE A LONG AND RELENTLESS ASSAULT ON THE PROBLEMS OF CRIME AND VIOLENCE IN THIS COUNTRY VOTER CONCERN OVER CRIME WAS A MAJOR POLITICAL FORCE BEHIND THE MEASURE AND ULTIMATELY HELPED ISOLATE CONSERVATIVES ALIGNED WITH THE NATIONAL RIFLE ASSOCIATION REPUBLICANS AIDED BY SOME WESTERN AND SOUTHERN DEMOCRATS HAD THE STRENGTH TO CONTINUE BLOCKING THE BILL IN THE SENATE BUT WERE ANXIOUS TO EXTRACT THEMSELVES FROM WHAT HAD BECOME AN EMBARRASSING STALEMATE THE REPUBLICANS CAVED IN SAID REP CHARLES SCHUMER D NY THE NRA WAS SENT HOME TO LICK ITS WOUNDS FOR MAJORITY LEADER GEORGE MITCHELL OF MAINE THE OUTCOME WAS A PERSONAL VICTORY AFTER HE HAD VOWED TO DELAY CONGRESS'S YEAREND ADJOURNMENT AND BRING SENATORS BACK NEXT WEEK IN A FINAL ATTEMPT TO BREAK THE REPUBLICAN RESISTANCE CONSERVATIVES COMPLAINED BITTERLY BUT ULTIMATELY SETTLED FOR THE PROMISE OF AN OPPORTUNITY NEXT YEAR TO TRY TO PHASE OUT THE BRADY WAITING PERIOD IN FAVOR OF AN INSTANT CHECK ARRANGEMENT THAT RELIES ON COMPUTERIZED FILES OF FEDERAL AND STATE CRIMINAL RECORDS MINORITY LEADER ROBERT DOLE EMBODIED THE CONFLICTS AMONG REPUBLICANS AND THE KANSAN SEEMED TORN BETWEEN HIS OWN POLITICAL INSTINCTS AND A FEAR OF LOSING PRESTIGE AMONG CONSERVATIVES IN HIS CAUCUS AFTER DAYS OF RECRIMINATIONS MR DOLE TRIED TO EMPHASIZE A GENTLER BIPARTISANSHIP LATER AND WHEN HE MET WITH REPORTERS AFTER THE VOTE HE BROUGHT ALONG OREGON SEN MARK HATFIELD A GOP LIBERAL WHO HAD BACKED THE BRADY BILL WE WERE REALISTIC SAID THE REPUBLICAN LEADER IT WAS IN EVERYBODY'S INTEREST TO GET THIS ISSUE BEHIND US THE ACTION CLEARS THE WAY FOR THE FORMAL ADJOURNMENT OF CONGRESS TODAY AND LAWMAKERS ARE SLATED TO RETURN ON JAN 25 UNDER THE AGREEMENT REACHED WEDNESDAY SENATE OPPONENTS OF THE BRADY BILL ARE ASSURED THEN OF EXPEDITED CONSIDERATION OF A RESOLUTION MAKING THE CHANGES THEY WANT IN THE LAW BUT DEMOCRATS GAVE NO GUARANTEE OF SUPPORT AND MR SCHUMER A LEADING SUPPORTER OF THE BILL ISSUED A STATEMENT SAYING HE WILL OPPOSE THE CHANGES IN THE HOUSE 9311260072 931126 MARKETING & MEDIA MICHAEL JACKSON GETS EMI TO RUN MUSIC PUBLISHER BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MICHAEL JACKSON SIGNED UP NEW MANAGERS FOR ONE OF HIS MUSICPUBLISHING BUSINESSES IN A DEAL THAT WILL PAY HIM 100 MILLION IN ADVANCES IN THE NEXT FIVE YEARS ATV MUSIC AS THE BUSINESS IS CALLED IS BEING MOVED FROM MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC WHICH ADMINISTERED IT FOR ABOUT THREE YEARS TO EMI MUSIC THE MUSIC CATALOG INVOLVED DOESN'T INCLUDE THE SINGER'S OWN WORKS BUT IT'S ONE OF THE MOST SIGNIFICANT MUSIC CATALOGS IN THE BUSINESS CARRYING SUCH VALUABLE PROPERTIES AS MANY OF THE CLASSIC LENNONMCCARTNEY BEATLE SONGS AND WORKS BY LITTLE RICHARD ELVIS PRESLEY AND OTHERS A SPOKESMAN FOR MR JACKSON SAID HIS MANAGERS WOULD HAVE PREFERRED TO RELEASE THE NEWS AT ANOTHER TIME RATHER THAN DURING THE CURRENT MEDIA CIRCUS WITH THE SINGER FACING ACCUSATIONS OF SEXUAL MOLESTATION HOWEVER THE SPOKESMAN SAID THE DEAL WAS SIGNED SEVERAL WEEKS AGO AND WAS A MATERIAL TRANSACTION AFFECTING EMI A UNIT OF THE UK'S THORN EMI PLC SO THE COMPANY ANNOUNCED THE CHANGE WHEN IT RECENTLY REPORTED EARNINGS RESULTS JOHN BRANCA AN ATTORNEY WHO HANDLED THE DEAL FOR ZIFFREN BRITTENHAM & BRANCA OF LOS ANGELES SAID THAT THE CHANGE WAS MADE BECAUSE EMI OFFERED A BETTER DEAL THAN MCA AND THAT EMI IS A MUCH BIGGER FORCE IN INTERNATIONAL MUSIC PUBLISHING THAN MCA EMI HAD THE CONTRACT FOR ATV MUSIC FOR A NUMBER OF YEARS BUT LOST OUT TO MCA THREE YEARS AGO EMI OFFERED INDUCEMENTS I CAN'T EVEN MENTION SAID MR BRANCA AS WELL AS ACCEPTING A LOWER FEE TO ADMINISTER THE MUSICPUBLISHING RIGHTS EMI IS TO BE PAID 75 OF THE REVENUES IT COLLECTS IN MUSICPUBLISHING FEES WHICH INDUSTRY EXECUTIVES SAID IS LOWER THAN THE NORMAL MANAGEMENT RATE THE FIVEYEAR AGREEMENT ALSO INCLUDES A PLAN FOR EMI MUSIC PUBLISHING AND MR JACKSON'S ATV TO ACQUIRE OTHER SONG CATALOGS TOGETHER MR BRANCA SAID MR JACKSON'S OWN SONGS ARE PART OF A DIFFERENT SONG CATALOG MIJAC MUSIC WHICH IS ADMINISTERED BY ANOTHER POWERHOUSE IN MUSIC PUBLISHING TIME WARNER INC'S WARNER/CHAPPELL MUSIC 9311260071 931126 MARKETING & MEDIA JOB CUTS CHARGE SLATED BY COCACOLA BEVERAGES LTD BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO COCACOLA BEVERAGES LTD SAID IT WILL CUT 560 JOBS OR 13 OF ITS WORK FORCE AND TAKE A RESTRUCTURING CHARGE OF 1655 MILLION CANADIAN DOLLARS US1248 MILLION IN AN EFFORT TO MAKE THE COMPANY PROFITABLE AMID THE GROWING MARKET SHARE OF PRIVATELABEL SOFT DRINKS IN CANADA I THINK COKE JUST DECLARED WAR ON CANADA'S SOFTDRINK MARKET SAID MIKE PALMER AN ANALYST WITH EQUITY RESEARCH ASSOCIATES INC IN TORONTO HE SAID COCACOLA BEVERAGES IS DETERMINED TO GET BACK EACH AND EVERY MARKETSHARE POINT THEY'VE LOST AND MIGHT SOON LOWER ITS PRICES TO COMPETE WITH CHEAPER PRIVATELABEL SOFT DRINKS COCACOLA BEVERAGES WHICH IS 49OWNED BY COCACOLA CO OF ATLANTA WILL ALSO HALT SOFTDRINK PRODUCTION AT EIGHT OF ITS 16 PLANTS ACROSS CANADA AND EITHER SELL THE PLANTS OR USE THEM AS DISTRIBUTION FACILITIES THE COMPANY WILL MAINTAIN ITS OVERALL SOFTDRINK OUTPUT BY BOOSTING PRODUCTION AT ITS REMAINING PLANTS AND CONSOLIDATE MUCH OF ITS ADMINISTRATIVE AND INVENTORY OPERATIONS COCACOLA BEVERAGES' RESULTS HAVE BEEN BATTERED BY THE RISING MARKET SHARE OF PRIVATELABEL SOFTDRINK MAKERS LED BY COTT CORP OF MISSISSAUGA ONTARIO FOR THE FIRST NINE MONTHS COCACOLA BEVERAGES HAD A LOSS OF C154 MILLION ON SALES OF C6752 MILLION INCLUDING A LOSS OF C14 MILLION IN THE THIRD QUARTER THE SOFTDRINK INDUSTRY'S BUSIEST PERIOD THE COMPANY'S SHARE OF CANADA'S PACKAGED SOFTDRINK MARKET BASED ON GROCERYSTORE SALES FELL BY ABOUT NINE PERCENTAGE POINTS TO 245 IN THE AUGUSTSEPTEMBER PERIOD COMPARED WITH A YEAR EARLIER ACCORDING TO AN INDUSTRY NEWSLETTER IN THE SAME PERIOD THE MARKET SHARE OF PRIVATELABEL SOFT DRINKS JUMPED 85 PERCENTAGE POINTS TO ABOUT 27 THE COMPANY SAID IT COULDN'T CONFIRM THOSE MARKETSHARE NUMBERS BUT SAID ITS SHARE OF THE ENTIRE CANADIAN SOFTDRINK MARKET IS ABOUT 43 WILLIAM CASEY PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WILL FOCUS ON CUSTOMER SERVICE AND PRODUCT PACKAGING IN ITS BID TO GAIN MARKET SHARE HE SAID THE COMPANY HAD UNBELIEVABLE SUCCESS FROM THE INTRODUCTION OF A PLASTIC CONTOUR BOTTLE A REPLICA OF THE TRADITIONAL GLASS COKE BOTTLE THE CONTOUR BOTTLE WILL BE INTRODUCED ACROSS CANADA NEXT YEAR HE SAID MR CASEY DECLINED TO SAY IF THE COMPANY PLANS TO LOWER ITS PRICES AS PART OF ITS RESTRUCTURING COCACOLA BEVERAGES PLANS TO RAISE C50 MILLION IN A DEBT OFFERING AND ARRANGED A DEFERRAL OF SOME DEBT DUE TO ITS BANKS THE COMPANY ALSO SUSPENDED PAYMENT OF ITS COMMONSHARE DIVIDENDS THAT WILL SAVE IT ABOUT C500000 PER QUARTER SHARES OF COCACOLA BEVERAGES CLIMBED 50 CANADIAN CENTS TO CLOSE AT C575 IN HEAVY TRADING ON THE TORONTO STOCK EXCHANGE WEDNESDAY AFTER THE RESTRUCTURING WAS ANNOUNCED AND WERE UNCHANGED YESTERDAY 9311260070 931126 BUSINESS BRIEF MID MAINE SAVINGS BANK FIRM AGREES TO BE BOUGHT FOR PEOPLES HERITAGE STOCK MID MAINE SAVINGS BANK SAID IT AGREED TO BE ACQUIRED BY PEOPLES HERITAGE FINANCIAL GROUP INC IN A STOCK SWAP THE COMPANIES SAID THAT UNDER TERMS MID MAINE SHAREHOLDERS WILL RECEIVE 0835 PEOPLES HERITAGE COMMON SHARE FOR EACH MID MAINE SHARE BASED ON TUESDAY'S CLOSING PRICE FOR PEOPLES HERITAGE WHICH TRADES ON THE NASDAQ STOCK MARKET THE VALUE OF THE TRANSACTION IS 115 MILLION MID MAINE HAS 14 MILLION SHARES OUTSTAND ING FOLLOWING WORD OF THE ACQUISITION PLAN PEOPLES HERITAGE CLOSED WEDNESDAY AT 10375 A SHARE UP 375 CENTS MID MAINE CLOSED AT 7 UP 125 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING MID MAINE SAID THE MERGER IS SUBJECT TO REGULATORY REVIEW AND TO APPROVAL BY ITS SHAREHOLDERS 9311260069 931126 CANADIAN AIRLINES CLEARS BIG HURDLE IN DEAL WITH AMR BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN AIRLINES INTERNATIONAL LTD WON A MAJOR VICTORY IN ITS BID TO TIE UP WITH AMR CORP THE PARENT OF AMERICAN AIRLINES CANADA'S COMPETITION TRIBUNAL APPROVED CANADIAN AIRLINES' WITHDRAWAL FROM A COMPUTERIZED SEATRESERVATION SYSTEM OPERATED BY GEMINI GROUP AUTOMATED DISTRIBUTION SYSTEMS INC OF TORONTO CANADIAN AIRLINES A WHOLLY OWNED SUBSIDIARY OF PWA CORP CALGARY ALBERTA HAS BEEN BATTLING TO FREE ITSELF FROM GEMINI SINCE IT STRUCK A PROPOSED PARTNERSHIP AGREEMENT LAST DECEMBER WITH AMR FORT WORTH TEXAS AMR AGREED TO BUY A ONETHIRD EQUITY INTEREST IN THE FINANCIALLY TROUBLED CANADIAN CARRIER FOR 246 MILLION CANADIAN DOLLARS US1855 MILLION PROVIDED THAT CANADIAN AIRLINES TRANSFER DATAPROCESSING BUSINESS FROM GEMINI TO AMR'S RIVAL SABRE NETWORK BY DEC 31 GEMINI WHICH IS JOINTLY OWNED BY PWA AIR CANADA AND AN AFFILIATE OF UAL CORP'S UNITED AIRLINES IS SABRE'S MAIN COMPETITOR IN CANADA AIR CANADA HAS VIGOROUSLY OPPOSED CANADIAN AIRLINES' PLANNED SWITCH TO SABRE THE COMPETITION TRIBUNAL SAID THAT IF CANADIAN AIRLINES WASN'T ABLE TO NEGOTIATE A WITHDRAWAL AGREEMENT WITH ITS GEMINI PARTNERS BY DEC 8 IT WOULD ORDER THE PARTNERSHIP DISSOLVED BY NOVEMBER 1994 PWA CHAIRMAN RHYS EYTON WELCOMED THE RULING HE SAID THE DECISION BRINGS CANADIAN AIRLINES CLOSER TO OVERCOMING THE LAST IMPEDIMENT TO COMPLETING THE AMR TRANSACTION THE AIRLINE SAID IT WILL NEED AN EXTENSION OF THE DEC 31 DEADLINE IN ITS CONTRACT WITH AMR AN AMR SPOKESMAN SAID THE COMPANY REMAINS VERY EAGER TO CONSUMMATE THE TRANSACTION WITH PWA AND WILL CONSIDER ITS REQUEST FOR A CONTRACT EXTENSION CANADIAN AIRLINES AND AIR CANADA AGREED YESTERDAY TO TRY TO NEGOTIATE THEIR DIFFERENCES WITH THE HELP OF A MEDIATOR STANLEY HARTT CHIEF EXECUTIVE OFFICER OF THE TORONTO PROPERTY COMPANY CAMDEV CORP THE TWO AIRLINES HADN'T BEEN ABLE TO AGREE ON A BASIS FOR DISCUSSIONS CANADIAN AIRLINES HAD INSISTED THAT ANY TALKS INVOLVE ITS WITHDRAWAL FROM GEMINI AIR CANADA HAD INSISTED THAT THEY INVOLVE ITS PROPOSED PURCHASE OF PWA'S OVERSEAS ROUTES A BID REJECTED BY PWA AIR CANADA AND CANADIAN AIRLINES ARE THE COUNTRY'S TWO MAJOR CARRIERS OFFERING DOMESTIC AND INTERNATIONAL SERVICE AIR CANADA OFFICIALS HAVE SAID THE AIRLINE MAY BE FORCED INTO THE ARMS OF A BIG US CARRIER IF AMR AND CANADIAN AIRLINES COMPLETE THEIR TIEUP MONTREALBASED AIR CANADA ONCE GOVERNMENTOWNED HAS LONG ARGUED THAT CANADA'S POPULATION IS TOO SMALL TO SUPPORT TWO INTERNATIONAL CARRIERS IN TRADING ON THE TORONTO STOCK EXCHANGE PWA SHARES CLOSED UP 32 CANADIAN CENTS AT C149 US112 AIR CANADA SHARES FELL 125 CANADIAN CENTS TO C513 SEPARATELY PWA ON WEDNESDAY REPORTED THIRDQUARTER NET INCOME OF C385 MILLION OR 78 CANADIAN CENTS A SHARE ON REVENUE OF C8836 MILLION THE RESULTS COMPARE WITH NET INCOME OF C27 MILLION OR FOUR CANADIAN CENTS ON REVENUE OF C8419 MILLION A YEAR EARLIER CHRISTOPHER J CHIPELLO IN MONTREAL AND TAMSIN CARLISLE IN CALGARY CONTRIBUTED TO THIS ARTICLE 9311260068 931126 SPORTSTOWN REPORTS LOSS CONCERN TO SEEK WAIVER FROM LENDER ATLANTA SPORTSTOWN INC REPORTED A HIGHERTHANEXPECTED LOSS FOR ITS FISCAL THIRD QUARTER AND SAID IT WOULD SEEK A WAIVER FROM ITS LENDER REGARDING DEFAULT OF CERTAIN COVENANTS IN THE COMPANY'S REVOLVING CREDIT FACILITY THE SPORTINGGOODS RETAILER REPORTED A LOSS OF 17 MILLION OR 35 CENTS A SHARE FOR THE QUARTER ENDED OCT 30 THAT COMPARES WITH EARNINGS OF 30000 OR ONE CENT A SHARE A YEAR EARLIER SALES ROSE 34 TO 368 MILLION FROM 274 MILLION IN TRADING WEDNESDAY ON THE NASDAQ STOCK MARKET SPORTSTOWN SHARES FELL 875 CENTS OR NEARLY 15 CLOSING AT 5 THE CREDIT ISSUE RELATES TO A 35 MILLION THREEYEAR CREDIT LINE THAT THE COMPANY ESTABLISHED IN AUGUST ACCORDING TO CLYDE S FOSSUM CHIEF FINANCIAL OFFICER AFTER MISSING ITS OWN EARNINGS ESTIMATES THE COMPANY SAW STOCKHOLDERS' EQUITY DROP TO 337 MILLION WHICH IS BELOW THE LEVEL MANDATED BY COVENANTS IN THE CREDIT AGREEMENT MR FOSSUM SAID MR FOSSUM ADDED HOWEVER THAT HE EXPECTS SPORTSTOWN TO RECEIVE A WAIVER BY NEXT WEEK AND EXPECTS THE COMPANY TO REPORT A PROFIT IN THE FOURTH QUARTER ANALYST WAYNE HOOD OF PRUDENTIAL SECURITIES IN NEW YORK ATTRIBUTED SPORTSTOWN'S PERFORMANCE TO SOFT SPORTINGGOODS DEMAND AND A REMODELING PROGRAM AT ONE OF THE LARGEST SPORTSTOWN STORES THE COMPANY SAID THE INCREASE IN SALES IN THE QUARTER STEMMED FROM OPENING EIGHT STORES BUT COMPARABLESTORE SALES DECLINED 64 DURING THE QUARTER IN LAST YEAR'S THIRD QUARTER COMPARABLESTORE SALES INCREASED 167 SPORTSTOWN OPERATES 25 WAREHOUSESTYLE STORES IN THE SOUTHEAST AND SOUTHWEST 9311260067 931126 SHORT INTEREST IN NASDAQ STOCKS HITS A RECORD SOME TELECOMMUNICATIONS TECHNOLOGY ISSUES ARE NEAR TOP OF LIST AGAIN BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NASDAQ MARKET SET A RECORD FOR THE 10TH CONSECUTIVE MONTH EDGING UP LESS THAN 1 TO 6713 MILLION SHARES FROM MIDOCTOBER'S 6636 MILLION SHORT INTEREST ON THE NASDAQ NATIONAL MARKET MADE UP OF THE LARGER OVERTHECOUNTER ISSUES ADVANCED LESS THAN 1 TO 629 MILLION SHARES FROM 623 MILLION A MONTH EARLIER AS IN THE PREVIOUS PERIOD SEVERAL TELECOMMUNICATIONS AND TECHNOLOGY COMPANIES WERE AMONG THOSE WITH THE LARGEST SHORT POSITIONS SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET ROSE 42 TO 424 MILLION SHARES FROM 407 MILLION A MONTH EARLIER SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY EVENTUALLY MUST BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT IN TIME THIS MONTH'S FIGURES REPRESENT SALES REPORTED AS OF NOV 7 AND SETTLED AS OF NOV AS IN THE PREVIOUS PERIOD A PORTION OF NOVEMBER'S INCREASED SHORT INTEREST COULD BE THE RESULT OF INVESTORS' WANTING TO DEFER TAKING GAINS ON MANY OF THE STOCKS THAT HAVE HAD LARGE RUNUPS THIS YEAR THIS IS CALLED SELLING SHORT AGAINST THE BOX OR SHORTING STOCK AGAINST THE SHARES IN THE PORTFOLIO THAT THE MANAGER WANTS TO HOLD ON TO FOR THE LONG TERM THE NATIONAL MARKET'S SHORT INTEREST RATIO AS OF MIDNOVEMBER FELL TO 224 FROM 265 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS WAS FLAT AT 092 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO HAS WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS AMONG COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS TELECOMMUNICATIONS INC'S CLASS A SHARES PLUNGED 24 TO 93 MILLION SHARES WHILE AMERICAN POWER CONVERSION CORP SLIPPED 56 TO 137 MILLION SHARES COMCAST CORP'S CLASS A SPECIAL SHARES SHOT UP 44 TO 91 MILLION SHARES WHILE THE SHORT INTEREST POSITION OF THE COMPANY'S CLASS A SHARES ROSE 47 TO 76 MILLION SNAPPLE BEVERAGE CORP'S POSITION ROSE SLIGHTLY TO 102 MILLION SHARES FROM 101 MILLION AND MCI COMMUNICATIONS CORP ROSE TO 88 MILLION SHARES FROM 83 MILLION THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDNOVEMBER OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDOCTOBER SEE ACCOMPANYING TABLES WSJ NOV 26 1993 9311260066 931126 UAL TO RESUME ITS NEGOTIATIONS WITH 2 UNIONS STEP SHOWS LABOR GROUPS NOW HOLD SWAY IN TALKS ON FUTURE OF CARRIER BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP IN A SURPRISE ABOUTFACE AGREED TO RESUME NEGOTIATIONS WITH THE TWO UNIONS SEEKING TO ACQUIRE MAJORITY CONTROL OF THE AIRLINE UAL'S DECISION SIGNALED THAT THE PILOTS' AND MACHINISTS' UNIONS HAVE GAINED THE UPPER HAND IN THE DISCUSSIONS OVER THE SHAPE OF UNITED AIRLINES DIRECTORS OF UAL THE CARRIER'S PARENT HAVE BEEN CONSIDERING TWO MAIN WAYS TO LOWER COSTS AND REGAIN LONGTERM PROFITS GIVING THE UNIONS A MAJORITY STAKE IN UAL IN EXCHANGE FOR BILLIONS OF DOLLARS OF LABOR CONCESSIONS OR SHEDDING FLIGHT AND MAINTENANCE OPERATIONS AND CONTRACTING OUT THOUSANDS OF UNITED JOBS ONLY TWO WEEKS AGO UAL REJECTED AS INADEQUATE THE UNIONS' PROPOSAL TO ACQUIRE 60 OF THE COMPANY WHICH THE UNIONS VALUED AT 55 BILLION OR 16567 A SHARE HOWEVER UAL'S INVESTMENT ADVISER CS FIRST BOSTON INC VALUED THE OFFER AT ONLY ABOUT 140 A SHARE IN COMPOSITE TRADING WEDNESDAY ON THE NEW YORK STOCK EXCHANGE UAL SHARES CLOSED AT 139375 UP 2875 HOURS BEFORE UAL REJECTED THE BID ON NOV 12 THE UNIONS FAXED A LETTER TO FIRST BOSTON INDICATING THAT THEY WOULD ADD MATERIAL VALUE TO THEIR OFFER UNDER TWO CONDITIONS UAL FIRST HAD TO AGREE TO DEFER OR RESCIND THE DEADLINE OF A PLANNED SALE OF ITS CATERING OPERATIONS WHICH EMPLOY SOME 5000 UNION MEMBERS AND IT HAD TO AUTHORIZE COMPANY REPRESENTATIVES TO NEGOTIATE A REALISTIC TRANSACTION RATHER THAN ENDLESSLY REPEATING UAL'S ORIGINAL AND UNOBTAINABLE POSITION THE FAX SAID UAL DISMISSED THE DEMANDS ANNOUNCING PLANS TO PROCEED WITH THE SALE OF THE SOCALLED FLIGHT KITCHENS A MOVE THE UNIONS BITTERLY OPPOSED INCENSED PARTLY OVER THE KITCHEN ANNOUNCEMENT THE UNIONS EARLIER THIS WEEK THREATENED TO PROTEST WITH A WORKSLOWDOWN CAMPAIGN BUT ON THANKSGIVING EVE UAL REVERSED ITSELF AGREEING TO DISCUSS WITH THE UNIONS THE SALE OF THE KITCHENS AND TO GRANT NEGOTIATING AUTHORITY TO THE COMPANY'S ADVISERS THE UNION GROUP SAID THE TALKS ARE EXPECTED TO BEGIN WEDNESDAY A UNITED SPOKESMAN SAID HE COULD ONLY CONFIRM THAT DISCUSSIONS WILL RESUME NEXT WEEK STEPHEN M WOLF UAL'S CHAIRMAN AND CHIEF EXECUTIVE HAS REPEATEDLY STRESSED IN INTERVIEWS AND STATEMENTS THAT THE COMPANY IS OPEN TO FURTHER NEGOTIATIONS WITH THE UNIONS HIS PREFERENCE FOR A HARMONIOUS LABOR APPROACH IS PARTLY BASED ON THE BELIEF THAT THE ALTERNATE PLAN THE SHEDDING OF OPERATIONS AND JOBS WOULD PROVOKE COSTLY UNION RESISTANCE ORCHESTRATED FLIGHT DELAYS AND ABSENTEEISM COULD COST UNITED MORE THAN 1 BILLION OVER TWO YEARS ACCORDING TO INTERNAL COMPANY FORECASTS STILL MR WOLF'S DEMANDS IN THE DAYS PRIOR TO THE COLLAPSE OF THE LABORBUYOUT TALKS TWO WEEKS AGO LED SOME UNION LEADERS TO QUESTION HIS SINCERITY THE PILOTS' UNION HAS BEEN PARTICULARLY DISTRUSTFUL OF UNITED MANAGEMENT SINCE THE PILOTS WAGED A BITTER 29DAY STRIKE IN 1985 PERHAPS TO HELP ALLEVIATE LINGERING SUSPICIONS UAL HIRED FELIX ROHATYN AN INVESTMENT BANKER WITH LAZARD FRERES & CO TO HELP BROKER THE RENEWED DISCUSSIONS WITH THE UNIONS MR ROHATYN SERVED ON PRESIDENT CLINTON'S NATIONAL AIRLINE COMMISSION THIS YEAR WITH JOHN PETERPAUL THE TOP AIRLINE NEGOTIATOR FOR UNITED'S MACHINISTS UNION 9311260065 931126 PHILIP MORRIS TO SLASH STAFF SHUT 40 PLANTS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS PLANS TO ELIMINATE 14000 JOBS OR 8 OF ITS WORLDWIDE WORK FORCE AND CLOSE AS MANY AS 40 PLANTS AS IT TRIES TO ADJUST TO THE LOWER PROFIT LEVELS OF THE US TOBACCO MARKET THE SWEEPING COSTCUTTING PROGRAM AND AN ACCOUNTING CHANGE WILL REDUCE PHILIP MORRIS'S PROFITS BY NEARLY 1 BILLION THIS YEAR WHILE PROFIT PRESSURE IS MOST INTENSE AT PHILIP MORRIS'S US TOBACCO BUSINESS ANALYSTS EXPECT THE COMPANY'S KRAFT GENERAL FOODS BUSINESS TO BEAR THE BRUNT OF THE PLANT CLOSINGS AND LAYOFFS PHILIP MORRIS'S BOARD ALSO DECLINED TO RAISE THE TOBACCO AND FOOD GIANT'S DIVIDEND FOR THE FIRST TIME SINCE 1968 ANALYSTS SAID IT WOULD HAVE BEEN IMPOLITIC TO REWARD INVESTORS WITH A HIGHER DIVIDEND WHILE ANNOUNCING MASSIVE LAYOFFS AT THE BEGINNING OF THE HOLIDAY SEASON PHILIP MORRIS ALSO DISCLOSED THAT 1993 PROFITS EXCLUDING CHARGES STEMMING FROM THE RESTRUCTURING AND AN ACCOUNTING CHANGE WOULD BE DOWN 16 COMPARED WITH 493 BILLION OR 545 A SHARE IN 1992 ANALYSTS EXPECT PHILIP MORRIS TO EARN ABOUT 41 BILLION OR 457 A SHARE EXCLUDING THE ONETIME EXPENSES THIS YEAR WITH THE EXPENSES 1993 PROFITS WILL BE 315 BILLION OR 349 A SHARE PHILIP MORRIS'S WORK FORCE IS THE LATEST TO FALL VICTIM TO A SUBSTANTIAL DOWNSIZING PROGRAM AS CORPORATIONS STRUGGLE TO COME TO TERMS WITH CONSUMERS WHO ARE REFUSING TO ACCEPT PRICE INCREASES ALAN J LACY THE PHILIP MORRIS EXECUTIVE WHO DEVELOPED THE RESTRUCTURING PLAN OVER THE LAST FEW MONTHS SAID 24 OF 43 CORPORATIONS IN SIMILAR BUSINESSES HAVE ANNOUNCED RESTRUCTURING CHARGES IN THE LAST 12 MONTHS LAST WEEK PHILIP MORRIS HAD TELEGRAPHED ITS INTENT TO TAKE A SIGNIFICANT CHARGE IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION BUT ANALYSTS WERE SURPRISED BY THE MAGNITUDE OF THE CUTBACKS IT'S BIGGER AND MORE EXTENSIVE THAN I WOULD HAVE GUESSED SAID ROY BURRY TOBACCO ANALYST WITH KIDDER PEABODY & CO STILL PHILIP MORRIS STOCK ROSE SLIGHTLY AS INVESTORS FOCUSED ON THE EVENTUAL SAVINGS FROM THE CUTBACKS THE JOB CUTS AND PLANTS CLOSINGS WILL GENERATE 600 MILLION IN SAVINGS BY 1997 PHILIP MORRIS SAID PHILIP MORRIS STOCK CLOSED AT 5550 UP 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE PLANT CLOSINGS AND JOB CUTS WILL TAKE PLACE OVER THE NEXT THREE YEARS PHILIP MORRIS REFUSED TO IDENTIFY SPECIFIC PLANTS OR BUSINESSES THAT WOULD BE AFFECTED PHILIP MORRIS HAS ABOUT 96000 EMPLOYEES IN THE US NOT ALL THE PLANTS TARGETED WILL BE SHUT DOWN ENTIRELY SOME WILL CURTAIL ACTIVITIES SOME CLOSINGS WILL BE ANNOUNCED BY THE END OF THE YEAR THE COMPANY SAID EACH OF ITS SEPARATE BUSINESSES WOULD ANNOUNCE PLANT CLOSINGS AND LAYOFFS INDIVIDUALLY CLEARLY THE CUTS WILL GO WELL BEYOND THE DOMESTIC TOBACCO BUSINESS WHICH IS UNDER THE MOST INTENSE PROFIT PRESSURE PHILIP MORRIS ONLY HAS THREE MAJOR CIGARETTE FACTORIES IN THE US AND THEY ARE ALREADY HIGHLY EFFICIENT WITH 40 PLANTS THE CUTS MUST GO WELL INTO THE FOOD BUSINESS SAID JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC ADDING THAT THIS WILL BE THE THIRD MAJOR RESTRUCTURING FOR KRAFT SINCE 1989 I'M SURPRISED THE FOOD BUSINESS NEEDS A THIRD RESTRUCTURING TO GET IT GOING HE ADDED HOPEFULLY THIS THIRD SHOT WILL JUMPSTART THE BUSINESS PHILIP MORRIS HAS BEEN STRIVING TO CUT COSTS FOR SOME TIME SINCE 1991 IT HAS REDUCED ITS US HEAD COUNT BY ALMOST 10000 EMPLOYEES EXCLUDING ACQUISITIONS AND SINCE THE BEGINNING OF 1992 PHILIP MORRIS HAS CLOSED 15 FOOD PLANTS IN NORTH AMERICA KRAFT GENERAL FOOD HAS ALSO BEEN DUMPING LOWMARGIN BUSINESSES SELLING ITS BIRDS EYE FROZEN VEGETABLE AND BREYERS ICE CREAM BUSINESSES MR MCMILLIN SAID THE COMPANY MAY NOW BE CONSIDERING SELLING OR CURTAILING ITS HUGE FOODSERVICE BUSINESS OTHER POTENTIAL TARGETS FOR PLANT CLOSINGS ARE FACTORIES IN EUROPE WHERE PHILIP MORRIS HAS BEEN AGGRESSIVELY SNAPPING UP CANDY COMPANIES IN RECENT YEARS THE RESTRUCTURING PROGRAM WHICH WAS ANNOUNCED AFTER A REGULARLY SCHEDULED BOARD MEETING WEDNESDAY WILL RESULT IN A 457 MILLION FOURTHQUARTER CHARGE TO COVER THE COST OF THE PLANT CLOSINGS THE COMPANY WILL ALSO ADOPT A NEW ACCOUNTING STANDARD THAT DICTATES HOW POSTEMPLOYMENT BENEFITS WILL BE ACCOUNTED FOR THE ADOPTION OF THE STANDARD WILL REDUCE 1993 PROFITS BY 495 MILLION AFTER TAXES THE RESTRUCTURING CHARGE AND THE ACCOUNTING CHANGE WILL LOWER 1993 EARNINGS 952 MILLION OR 108 A SHARE WITH THE BOARD FORGOING THE CUSTOMARY DIVIDEND INCREASE THE COMPANY'S QUARTERLY PAYOUT WILL REMAIN 65 CENTS A SHARE THERE IS A LOT OF VOLATILITY IN THE DOMESTIC TOBACCO MARKET SAID CRAIG L FULLER A PHILIP MORRIS SENIOR VICE PRESIDENT AN INCREASE WAS THOUGHT NOT TO BE PRUDENT THE CIGARETTE INDUSTRY HAS BEEN IN TURMOIL SINCE APRIL 2 WHEN PHILIP MORRIS ANNOUNCED PLANS TO SLASH THE PRICES OF PREMIUM CIGARETTE BRANDS TO COMBAT THE GROWTH OF CHEAPER BRANDS GIVEN PHILIP MORRIS'S POOR PERFORMANCE THIS YEAR ANALYSTS WERE NOT SURPRISED THAT THE COMPANY DECIDED TO END THE YEAR WITH A LARGE CHARGE IF YOU ARE HAVING A BAD YEAR ANYWAY YOU MIGHT AS WELL CUT COSTS WHILE YOU CAN AND SET UP A COST STRUCTURE THAT WILL PROVIDE FOR FUTURE GROWTH SAYS BARRY ZIEGLER TOBACCO ANALYST WITH AG EDWARDS IN ST LOUIS SEPARATELY PHILIP MORRIS ELECTED STEPHEN M WOLF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UAL CORP A DIRECTOR EXPANDING THE SIZE OF ITS BOARD TO 20 9311260064 931126 ENTERPRISE MIXED REVIEWS FOR HEALTH PLAN LIKE CLINTON'S BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL A SMALLBUSINESS HEALTHINSURANCE PROGRAM IN CALIFORNIA THAT LOOKS A LOT LIKE A KEY ELEMENT OF PRESIDENT CLINTON'S HEALTHREFORM PLAN IS GETTING MIXED REVIEWS FROM USERS FIVE MONTHS AFTER ITS DEBUT ALREADY THE REACTION IS INFLUENCING THE DEBATE OVER THE CLINTON PROPOSAL THE RESPONSE ON CLAIMS HAS BEEN EXTREMELY GOOD SAYS PETER MOOSMAN COOWNER OF MTE INC A HIGHTECH MACHINE SHOP IN SAN JOSE HE SAYS HIS COMPANY IS SAVING AN AVERAGE OF 75 A MONTH PER WORKER IN HEALTHCOVERAGE PREMIUMS SINCE IT DROPPED A PREVIOUS INSURER AND JOINED THE NEW STATESUPPORTED PROGRAM BUT DEL RIESENHUBER CHIEF FINANCIAL OFFICER OF ACCURAY INC A SANTA CLARA MEDICALEQUIPMENT MAKER SAYS WE'VE ASKED A BROKER TO GET US OUT OF IT AND INTO SOMETHING BETTER HE SAYS THAT THE PROGRAM'S RULES ARE HARD TO UNDERSTAND AND THAT COVERAGE DOESN'T NECESSARILY EXTEND TO AN EMPLOYEE'S PRESENT PHYSICIAN THE OBJECT OF THESE COMMENTS IS THE HEALTH INSURANCE PLAN OF CALIFORNIA THE NATION'S FIRST STATEWIDE GOVERNMENTBACKED HEALTHINSURANCE PURCHASING POOL FOR SMALL EMPLOYERS THE PROGRAM KNOWN BY ITS ACRONYM HIPC PRONOUNCED HIPICK HAS ENROLLED 1152 SMALL COMPANIES SINCE OPENING FOR BUSINESS JULY 1 HIPC IS ALSO HEALTHREFORM JARGON FOR GROUPS KNOWN AS HEALTH INSURANCE PURCHASING COOPERATIVES CALIFORNIA'S HIPC IS THE CLOSEST WORKING MODEL OF A HEALTHINSURANCE ALLIANCE THE ADMINISTRATIVE CENTERPIECE OF THE CLINTON HEALTHINSURANCE PLAN SPECIALISTS SAY UNLIKE THE MORE COMPREHENSIVE CLINTON PROPOSAL IT IS VOLUNTARY RATHER THAN MANDATORY AND UNIVERSAL AND IT OFFERS NO SUBSIDIES FOR SMALL COMPANIES NONETHELESS THERE ARE ENOUGH SIMILAR ELEMENTS THAT HEALTH REFORMERS IN WASHINGTON ARE WATCHING THE INNOVATION CLOSELY OFFICIALS IN TEXAS FLORIDA AND A FEW OTHER STATES ARE DRAFTING THEIR OWN VERSIONS OF IT IT'S GOING TO BE THE MODEL THAT IS CITED IN HEALTHCAREREFORM DEBATE BECAUSE IT ISN'T SINGLE PAYER IT INVOLVES THE PRIVATE SECTOR AND IT'S SUCCEEDING AT ONE OF THE MAJOR OBJECTIVES OF HEALTH REFORM GETTING COVERAGE TO THE PREVIOUSLY UNINSURED SAYS MARK AGNEW VICE PRESIDENT AND PRINCIPAL IN THE SAN FRANCISCO OFFICE OF BUCK CONSULTANTS INC NEW YORK BOTH SIDES OF THE HEALTHCARE DEBATE ARE LIKELY TO INVOKE THE NEW PROGRAM HE SAYS OPPONENTS OF THE CLINTON PLAN CAN POINT TO CALIFORNIA AND SAY WE DON'T NEED MANDATED COVERAGE BECAUSE STATESUPPORTED VOLUNTARY COVERAGE IS WORKING SIDEBYSIDE WITH NONHIPC COMPETITIVE COVERAGE ALL AT NO COST TO TAXPAYERS MR AGNEW SAYS AND CLINTON REFORMERS CAN SAY IF WE'VE ACHIEVED THIS MEASURE OF SUCCESS LET'S TAKE THE NEXT STEP I REALLY THINK THE CALIFORNIA EXPERIMENT IS GOING TO BE FRONT AND CENTER IN THE DEBATE HE ADDS THERE'S SOMETHING IN IT TO BE LIKED AND DISLIKED BY BOTH SIDES HIPC IS THE OUTGROWTH OF A 1992 CALIFORNIA LAW THAT REQUIRES WRITERS OF HEALTH COVERAGE FOR SMALL GROUPS TO MAKE AFFORDABLE INSURANCE AVAILABLE TO ALL COMPANIES WITH FIVE TO 50 WORKERS REGARDLESS OF THEIR HEALTH HISTORY HEALTH INSURANCE IN THE US HAS HISTORICALLY BEEN OFFERED TO SMALL COMPANIES ON A CASEBYCASE BASIS A SMALL COMPANY EMPLOYING A WORKER WHO RUNS UP BIG MEDICAL BILLS CAN FACE HUGE INCREASES IN PREMIUMS AT RENEWAL TIME MANY SMALL COMPANIES CAN'T GET COVERAGE AT ANY PRICE IN ORDER TO GIVE SMALL COMPANIES THE INSURANCEPURCHASING LEVERAGE THAT LARGE CORPORATIONS ENJOY CALIFORNIA OFFICIALS HAVE CARVED THE STATE INTO SIX REGIONS FOR RATESETTING PURPOSES THIS ALLOWS INSURERS TO SPREAD THEIR RISK OVER LARGE NUMBERS OF COMPANIES EMPLOYEES OF COMPANIES THAT INSURE THROUGH HIPC ARE OFFERED AN INSURANCE SMORGASBORD THEY CAN CHOOSE AMONG TWO HEALTH MAINTENANCE ORGANIZATIONS AND TWO PREFERRED PROVIDER PLANS OFFERED BY A VARIETY OF CARRIERS APPROVED BY THE STATE A PRIVATE COMPANY EMPLOYERS HEALTH INSURANCE CO OF GREEN BAY WIS HANDLES MARKETING ENROLLMENT AND BILLING THE CALIFORNIA PROGRAM HAS FOCUSED ON A DEMOGRAPHIC SLIVER SMALLBUSINESS EMPLOYEES RATHER THAN THE POPULATION AT LARGE SMALL COMPANIES WERE TARGETED BECAUSE THEIR WORK FORCES CONTAIN THE LARGEST SEGMENT OF THE POPULATION WITHOUT HEALTH COVERAGE BUT EXPANSION IS ALREADY IN THE WORKS A BILL HAS BEEN INTRODUCED IN THE STATE ASSEMBLY TO OFFER HIPC COVERAGE TO COMPANIES WITH UP TO 100 WORKERS WHILE LOWERING THE THRESHOLD TO INCLUDE THE TINIEST CONCERNS MEASURED AGAINST THE MAGNITUDE OF CALIFORNIA'S ROUGHLY 360000 SMALL BUSINESSES HIPC'S IMPACT TO DATE HAS BEEN MINUSCULE BUT THE EXECUTIVE DIRECTOR KIRK ROTHROCK SAYS EMPLOYERS ARE ENROLLING AT A RATE OF 300 A MONTH THE NO 1 ATTRACTION IS AFFORDABILITY HE SAYS ALLEN MALTZ A VICE PRESIDENT AT AETNA LIFE & CASUALTY INC HARTFORD CONN ESTIMATES THAT HIPC REDUCES HEALTHINSURANCE COSTS BY ABOUT 5 PRIMARILY BECAUSE IT CONSOLIDATES ALL THE ADMINISTRATIVE BURDENS IT COMES IN AS IF IT WERE A SINGLE LARGE CASE IT CREATES ECONOMIES OF SCALE FOR US IN MANAGING THE BUSINESS MR MALTZ SAYS HE ADDS THAT CALIFORNIA'S BAN ON AN INSURER'S WITHHOLDING SMALLGROUP COVERAGE ELIMINATES THE RISK THAT THE NEW PROGRAM MIGHT BECOME AN INSURER OF LAST RESORT AT MTE INC BENEFITS COORDINATOR VICKI DUFFLEY SAYS HIPC COVERAGE FOR 46 WORKERS COST 9503 IN NOVEMBER SHE SAYS MTE SWITCHED TO HIPC THREE MONTHS AGO WHEN ITS PREVIOUS HEALTH INSURER BLUE CROSS OF CALIFORNIA SAID IT WAS RAISING THE COMPANY'S MONTHLY PREMIUM BY ABOUT A THIRD TO 13200 MS DUFFLEY A SINGLE MOTHER WITH TWO CHILDREN SAYS HER OWN COVERAGE ILLUSTRATES HIPC'S ADVANTAGES SHE CHOSE AN HMO OFFERED BY AETNA HEALTH PLANS OF CALIFORNIA FOR 253 A MONTH WHICH THE COMPANY PAYS HAD THE COMPANY RENEWED WITH BLUE CROSS HER PREMIUM WOULD HAVE BEEN 651 SHE SAYS THE COMPANY'S PREMIUM WAS EXCEPTIONALLY HIGH DOCTORS WHOM SHE HAD BEEN SEEING BEFORE ARE PART OF HER NEW HMO SHE ADDS BUT AT ACCURAY BENEFITS COORDINATOR LINNEA EMERY HAS A DIFFERENT VIEW OF HIPC I HATE IT SHE SAYS IT SOUNDED GOOD BUT THEY REALLY HAVE A LOT OF PROBLEMS TO WORK OUT ACCURAY'S MR RIESENHUBER SAYS HIPC TOLD THE COMPANY IT WOULDN'T COVER A NEW EMPLOYEE BECAUSE THE COMPANY HADN'T FILED INFORMATION ON THE NEW WORKER WITHIN 60 DAYS OF HIRING WE'VE DONE A FAIRLY EXHAUSTIVE SEARCH OF THE DOCUMENTATION AND YOU CAN'T FIND A SPECIFIC REFERENCE THAT SAYS THAT REQUIREMENT MR RIESENHUBER SAYS A HIPC OFFICIAL REPLIES THAT ACCURAY ITSELF CAME UP WITH THE 60DAY FIGURE THE OFFICIAL SAYS THE GUIDEBOOK SENT TO EACH EMPLOYER STATES THAT THE COMPANY NOT HIPC CHOOSES THE NUMBER OF DAYS DURING WHICH A NEWLY HIRED WORKER CAN APPLY FOR COVERAGE HIPC'S MR ROTHROCK CONCEDES THAT THE PROGRAM CAN BE COMPLICATED AND SAYS IT HASN'T BEEN AN EASY SELL I HAD TO WEAR A FLAK JACKET WHEN ADDRESSING MEETINGS OF INSURANCE BROKERS HE SAYS AGENTS HAVE BEEN FOES BECAUSE HIPC ALLOWS EMPLOYERS TO SAVE 5 OF THE PREMIUM COST BY BYPASSING BROKERS AND BUYING DIRECTLY BY TELEPHONE FROM HIPC MOST COMPANIES USE BROKERS ANYWAY MR ROTHROCK SAYS WHILE HIPC ADVERTISES THAT IT IS DESIGNED TO MAKE INSURANCE EASY MR ROTHROCK SAYS BOTH COMPANY OWNERS AND EMPLOYEES HAVE TO DO THEIR HOMEWORK IN CHOOSING BETWEEN INSURANCE OPTIONS IT'S NOT LIKE PICKING OUT A TOMATO AT THE SUPERMARKET HE SAYS IT'S COMPLEX AND KIND OF PAINFUL 9311260063 931126 WORLD MARKETS TOKYO EQUITIES SNAP THREEDAY LOSING STREAK EUROPEAN PRICES GAIN ON RATE INFLATION NEWS A WALL STREET JOURNAL NEWS ROUNDUP BUOYED BY THE JAPANESE CENTRAL BANK'S ACCOMMODATIVE STANCE IN MONEYMARKET OPERATIONS TOKYO STOCKS SNAPPED A THREEDAY LOSING STREAK THURSDAY RECOVERING ABOUT HALF THE LOSSES FROM THE PREVIOUS SESSION'S 18 SLUMP LONDON SHARES CLIMBED SHARPLY AFTER A FUTURES RALLY GAINED SPEED AND A GERMAN CENTRAL BANKER'S COMMENTS FUELED OPTIMISM ABOUT MORE EUROPEAN INTERESTRATE CUTS A FACTOR THAT PROPELLED PARIS PRICES UP 23 AND BOOSTED SEVERAL OTHER BOURSES FRANKFURT EQUITIES ADVANCED ON GOOD NEWS ABOUT GERMAN INFLATION IN MEXICO CITY STOCKS RALLIED 31 TO A NEW ALLTIME HIGH AS INVESTORS WERE ENCOURAGED BY THE GOVERNMENT'S PROPOSALS FOR FINANCIAL REFORMS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10856 UP 029 REFLECTING INCREASES IN NORTH AMERICAN EUROPEAN AND ASIAN/PACIFIC MARKETS SHIPBUILDING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10780 UP 147 OR 138 WITH FAR EAST LEVINGSTON OF SINGAPORE POSTING A 36 GAIN IN ITS LOCAL CURRENCY MAJOR BANKING STOCKS TRAILED AT 11239 DOWN 057 OR 051 WITH BANK OF TOKYO OF JAPAN SLIDING 292 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DIVED 31773 POINTS WEDNESDAY GAINED 15581 TO 1722292 ON FRIDAY IN TOKYO THE NIKKEI FELL 19162 POINTS TO CLOSE THE MORNING SESSION AT 1703130 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 320 MILLION SHARES UP FROM 3108 MILLION SHARES A DAY EARLIER GAINERS OUTPACED LOSERS 577467 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH PLUNGED 2779 POINTS WEDNESDAY ROSE 581 TO 147185 THE NIKKEI DRIFTED HIGHER IN MORNING DEALINGS ON REMARKS WEDNESDAY BY BANK OF JAPAN GOVERNOR YASUSHI MIENO AND BY THE CENTRAL BANK'S ACCOMMODATIVE STANCE EARLY THURSDAY IN THE MONEY MARKET BUT POSITION ADJUSTMENTS PUSHED THE INDEX BACK A BIT AS THURSDAY WAS THE LAST DAY FOR THE NOVEMBER ACCOUNT SETTLEMENT MR MIENO HAD SAID IT WAS IMPORTANT FOR THE CENTRAL BANK TO WATCH FOR EFFECTS OF THE STOCK MARKET'S RECENT BEAR RUN ON THE JAPANESE ECONOMY THIS WAS INTERPRETED AS AN INDICATION THAT THE GOVERNMENT AND THE CENTRAL BANK INCREASINGLY BELIEVE THEY CAN'T JUST STAND BY WITH THE MARKET IN ITS CURRENT WEAK CONDITION AS THE NIKKEI RECORDED AN INTRADAY LOW OF 1700330 MANY PARTICIPANTS BELIEVED THE INDEX HAD FOUND A TEMPORARY BOTTOM OF 17000 A LEVEL AT WHICH FINANCIAL INSTITUTIONS AND LIFE INSURERS ARE READY TO BUY GIVEN ANY ABSENCE OF ANY OTHER INCENTIVES THE MARKET MOSTLY IGNORED A SECURITIES FIRM'S RESEARCH REPORT WEDNESDAY THAT PROSPECTS OF THE NIKKEI'S PLUNGING TO AS LOW AS 12000 HAVE INCREASED SUBSTANTIALLY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 259 POINTS TO 30931 WHICH ALSO WAS THE INTRADAY HIGH THE FT 30STOCK INDEX RALLIED 253 POINTS OR 11 TO 23552 VOLUME WAS 6963 MILLION SHARES UP SHARPLY FROM 567 MILLION SHARES A DAY EARLIER THE BUYING SPREE BEGAN AFTER A GERMAN CENTRAL BANK OFFICIAL SAID HE SAW ROOM FOR FURTHER CUTS IN GERMAN INTEREST RATES THIS RENEWED HOPES IN LONDON THAT LENDING RATES WILL DROP FURTHER THROUGHOUT EUROPE AND IN BRITAIN HELPING ECONOMIES ESCAPE FROM RECESSION FUTURES BUYING KEPT THE LONDON STOCKMARKET RALLY GOING AND RATECUT OPTIMISM INTENSIFIED OVERSHADOWING CONCERNS THAT BIG TAX INCREASES WILL BE ANNOUNCED IN BRITAIN'S BUDGET NEXT TUESDAY FOR THE FIRST TIME IN SEVERAL DAYS LONDON TRADING WASN'T LIMITED TO SMALL INVESTORS AS NUMEROUS MIDSIZE TRADES WERE DONE THOUGH THE BIGGEST FUNDS REMAINED SIDELINED IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1816 POINTS TO 204771 NEAR THE SESSION PEAK OF 204938 AND CONTINUED RISING IN AFTERMARKET TRADING THE THANKSGIVING HOLIDAY KEPT US INVESTORS OUT OF THE GERMAN MARKET AND THEIR ABSENCE WAS FELT IN LISTLESS TRADING NEVERTHELESS SHARES FINALLY GOT A BROAD BOOST AS INFLATION DATA FROM THREE WESTERN GERMAN STATES SHOWED LAST MONTH'S CONSUMERPRICE INCREASES SLOWING OR HOLDING STEADY FROM A YEAR EARLIER IN PARIS AFTER OPENING WITH A DEFICIT STOCKS SOARED IN ACTIVE TRADING AS THE GERMAN CENTRAL BANKER'S COMMENTS REIGNITED HOPES FOR INTERESTRATE CUTS A SCENARIO BUTTRESSED BY THE GERMAN STATES' INFLATION DATA THE HEAVY VOLUME IN PARIS WAS SURPRISING AS A QUIET SESSION HAD BEEN EXPECTED BECAUSE OF THE US HOLIDAY IN MEXICO STOCKS JUMPED TO A RECORD BREAKING THE HIGH SET LAST FRIDAY AS PRESIDENT CARLOS SALINAS SENT PROPOSED FINANCIAL REFORMS INCLUDING A REWRITE OF A 1973 LAW ON FOREIGN INVESTMENT TO CONGRESS WHERE APPROVAL IS EXPECTED ANALYSTS SAID THE NEW FOREIGN INVESTMENT LAW WOULD ENCOURAGE GREATER INVESTMENT IN MEXICO'S PRODUCTIVE CAPACITY AND SPEED MUCHNEEDED TECHNOLOGY TRANSFERS IN AMSTERDAM SHARES ROSE ALSO SPURRED BY THE GERMAN BANKING OFFICIAL'S REMARKS THAT GERMAN RATES COULD BE REDUCED THOUGH IN THE QUIET SESSION MANY GAINS OWED TO THE ABSENCE OF SELLERS RATHER THAN ANY SUBSTANTIAL BUYING INTEREST IN MILAN EQUITIES CLIMBED ON STRONG BUYING IN THE AUTO AND TELECOMMUNICATIONS SECTORS IN MADRID PRICES ROSE AS THE MARKET GOT A BREATHER FROM THE US HOLIDAY THE SPANISH MARKET'S RECENT LOSSES HAVE BEEN LINKED TO HEAVY SELLING FROM THE US IN BRUSSELS SHARES BOUNCED SOLIDLY HIGHER PARTLY BECAUSE OF A BASKET TRADE IN THE EXCHANGE'S MAIN INDEX IN SYDNEY SHARE PRICES GAINED A LITTLE GROUND BUT BUYING WAS SELECTIVE SELLING EARLIER IN THE WEEK ON CONCERNS THAT AUSTRALIAN INTEREST RATES MAY BE HEADED UP BECAUSE OF HIGHER US BOND YIELDS WAS CONSIDERED OVERDONE IN HONG KONG STOCKS ADVANCED FOR THE SECOND SESSION AFTER WILD SWINGS DRIVEN BY FUTURES ACTIVITIES FOLLOWING THE PREVIOUS SESSION'S TECHNICAL REBOUND OF 22 SHARES OPENED HIGHER WERE TUGGED DOWN AND THEN BOUNCED BACK AS FUTURES REBOUNDED BANKS POSTED THE BIGGEST GAINS FOLLOWED BY COMMERCIAL AND INDUSTRIAL ISSUES IN SINGAPORE SHARES GAINED DESPITE A LACK OF NEWS WHICH KEPT VOLUME LOW IN TAIPEI EQUITIES FIRMED SLIGHTLY IN SUBDUED TRADING LED BY GAINS IN PAPER AND ELECTRONICS ISSUES BUT IN MANILA PRICES SLUMPED IN BRISK TRADING AS A WEAK PERFORMANCE BY A NEWLY LISTED ISSUE DEPRESSED THE MARKET AND IN SEOUL CORRECTING AFTER RECENT HEFTY GAINS STOCKS TUMBLED 12 BUFFETED BY LOSSES IN LARGE MANUFACTURING AND SECURITIES ISSUES 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 9311260062 931126 REVIEW & OUTLOOK EDITORIAL THE SPENDING EMPIRE RECALL THAT PRESIDENT CLINTON WON HIS BUDGET VICTORY THIS SUMMER BY ONE VOTE IN BOTH THE HOUSE AND SENATE ONLY AFTER PROMISING TO PROPOSE FURTHER SPENDING CUTS THIS FALL WHAT HE ACTUALLY BROUGHT TO THE TABLE THIS MONTH WAS AN ANEMIC 12 BILLION OFFERING THAT FIGURE WAS THEN DOWNGRADED SHARPLY WHEN THE CONGRESSIONAL BUDGET OFFICE CALCULATED THAT MR CLINTON'S REINVENTING GOVERNMENT IDEAS WOULD SAVE NOT 59 BILLION OVER FIVE YEARS BUT A PITIFUL 305 MILLION 5 OF THE ADMINISTRATION'S ESTIMATE THAT'S WHY REPS TIM PENNY A MINNESOTA DEMOCRAT AND JOHN KASICH AN OHIO REPUBLICAN TEAMED UP TO PROPOSE 90 BILLION IN REAL SPENDING CUTS AND ENTITLEMENT REFORMS INCLUDING SOME MEANSTESTING OF MEDICARE NORMALLY THE HOUSE RULES COMMITTEE THE GRAVEYARD OF REFORM LEGISLATION WOULD NEVER HAVE EVEN GIVEN PENNYKASICH A HEARING ON THE HOUSE FLOOR BUT MR PENNY EXTRACTED A WHITE HOUSE PROMISE MONTHS AGO THAT HE WOULD GET A VOTE ON HIS IDEA IF HE WENT ALONG WITH THE CLINTON TAX INCREASES HE HAD HOPES THAT MR CLINTON AND EVEN CONGRESSIONAL LEADERS MIGHT SEE THE FISCAL AND POLITICAL WISDOM OF BACKING SPENDING REFORM WHICH AN ANGRY ELECTORATE SEEMS TO WANT MR PENNY UNDERESTIMATED THE INFLUENCE OF WASHINGTON'S MOST POWERFUL LOBBY THE SPENDING EMPIRE LIKE THE DEATH STAR OF STAR WARS THE SPENDING EMPIRE QUICKLY DEPLOYED ITS SHOCK TROOPS TO ALL CORNERS OF CONGRESS TO KILL A PROPOSAL THAT WOULD TRIM FEDERAL SPENDING BY LESS THAN 1 OVER FIVE YEARS THERE WERE SCARE TACTICS AND THERE WAS BLATANT INTIMIDATION SAYS REP KASICH MEMBERS OF THE PORKDISPENSING HOUSE APPROPRIATIONS COMMITTEE TOOK THE UNUSUAL STEP OF SENDING LETTERS WARNING MEMBERS THAT THEIR LOCAL PROJECTS COULD BE JEOPARDIZED IF THEY VOTED FOR PENNYKASICH GOP REP PORTER GOSS SAYS MANY CONSERVATIVES ARE UNHAPPY THAT THREE SENIOR REPUBLICANS ON APPROPRIATIONS JOE SKEEN JIM LIGHTFOOT AND JOHN MYERS HELPED THE DEMOCRATIC LEADERSHIP TWIST ARMS BY COSIGNING THE LETTERS THE SPENDING EMPIRE ALSO MADE MR CLINTON A WILLING COCONSPIRATOR IN CRUSHING THE PENNYKASICH REBELLION ALICE RIVLIN HIS DEPUTY BUDGET DIRECTOR ANNOUNCED THAT FURTHER DEFICIT REDUCTION WOULD SLOW THE ECONOMY THE OPPOSITE OF HER SALES PITCH FOR THE CLINTON TAX INCREASES VICE PRESIDENT GORE AND CABINET OFFICERS CALLED MEMBERS AT HOME TO URGE THEM TO STOP THE RENEGADES HILLARY CLINTON TOLD MEMBERS THAT IF MEDICARE WERE CUT NOW HER CLAIM THAT MEDICARE SAVINGS WOULD PAY FOR ALL OF HER HEALTHCARE EXPANSIONS WOULD BE UNDERMINED FINALLY MR CLINTON INTERRUPTED HIS PACIFIC SUMMIT MEETING IN SEATTLE LAST WEEK TO CALL A NEWS CONFERENCE FOR THE SOLE PURPOSE OF ATTACKING PENNYKASICH IN THE END IT'S SURPRISING THE SPENDING EMPIRE WAS ABLE TO EKE OUT ONLY A 219TO213VOTE VICTORY ABOUT 90 OF HOUSE REPUBLICANS VOTED FOR PENNYKASICH AND THEY WERE JOINED BY 57 DEMOCRATS INCLUDING A THIRD OF THAT PARTY'S FRESHMEN THE LAST FIVE NO VOTES CAME FROM MEMBERS WHO WERE TOLD THEY MIGHT OTHERWISE LOSE DEFENSE INSTALLATIONS BACK HOME REP PENNY A LOYAL DEMOCRAT WHO IS RETIRING FROM CONGRESS AT THE AGE OF 42 IS DISAPPOINTED THAT MR CLINTON OPPOSED HIM SO VIGOROUSLY HE SAYS THAT BECAUSE OF NAFTA THE LOBBYING ON PENNYKASICH LASTED ONLY FIVE DAYS BUT THE INTERNAL ARMTWISTING WAS AS EXTREME AS WHEN THE WHITE HOUSE TRIED TO PASS ITS BUDGET MR PENNY SAYS THAT WHEN HE DISCUSSED BUDGET REFORM WITH MR CLINTON LAST AUGUST HE THOUGHT THEY BOTH WANTED GENUINE DEFICIT REDUCTION NOW I MUST CONCLUDE THE PRESIDENT'S ONLY INTERESTED IN BUDGET CUTS THAT WILL ALLOW HIM TO SPEND MORE ELSEWHERE HE CONCEDES REP ROB ANDREWS A NEW JERSEY DEMOCRAT WHO REPRESENTS GOV JIM FLORIO'S OLD TURF BUT NOT HIS OLD DEMOCRAT PHILOSOPHY IS EVEN MORE BLUNT HE SAYS HIS PARTY'S GAME PLAN IS TO TALK ABOUT NEW DEMOCRAT IDEAS SUCH AS WELFARE REFORM BUT AT THE SAME TIME TUCK AWAY DOLLARS TO PAY FOR NEW DOMESTIC PROGRAMS THAT KEEP DEMOCRATIC INTEREST GROUPS HAPPY AND GET THEM REELECTED MR ANDREWS THINKS THAT STRATEGY MAY NOT WORK YOU HAVE TO DO SOMETHING REAL ON BUDGET REFORM NOT JUST NOISES PENNYKASICH WAS A MISSED OPPORTUNITY TO DO THAT INDEED TO US THE VOTE ON PENNYKASICH REPRESENTS A CLEAR DIVIDE IN AMERICAN POLITICS BETWEEN THOSE WHO ARE SERIOUS ABOUT FORCING WASHINGTON TO LIVE WITHIN ITS MEANS AND THOSE WHO EITHER MERELY WANT TO TALK ABOUT IT SEE THE NEARBY LIST OR WHO ACTUALLY FAVOR EXPANDING GOVERNMENT RIGHT NOW THE DIVISION IN CONGRESS IS ROUGHLY EQUAL THAT MAY CHANGE IN 1995 HOUSE REPUBLICANS WILL BE LED BY NEWT GINGRICH MOST ARE ALREADY SHOWING REAL GRIT ON BUDGET MATTERS REP PENNY NOTES THAT NEARLY ALL OF THE DEMOCRATS WHO VOTED WITH HIM HAVE SERVED LESS THAN FIVE YEARS AND HE EXPECTS THE NUMBER OF BUDGET HAWKS IN HIS PARTY WILL GROW AFTER NEXT YEAR'S OFFYEAR ELECTION THE PROBLEM THESE NEW DEMOCRATS MAY DISCOVER IS THAT THE SPENDING EMPIRE IS BEING RUN OUT OF THE WHITE HOUSE THE FOLLOWING 32 HOUSE MEMBERS VOTED AGAINST PRESIDENT CLINTON'S BUDGET ON AUGUST 5 ALMOST ALL EXPRESSING CONCERNS THAT IT FAILED TO CUT FEDERAL SPENDING ENOUGH THEN LAST MONDAY ALL OF THEM ALSO VOTED AGAINST THE PENNYKASICH BILL WHICH WOULD HAVE CUT THE FEDERAL BUDGET BY 90 BILLION OVER THE NEXT FIVE YEARS LESS THAN 1 OF PLANNED SPENDING THE 16 MEMBERS WITH AN ASTERISK ARE ALSO COSPONSORS OF A BALANCED BUDGET AMENDMENT TO THE CONSTITUTION 9311260061 931126 WEDNESDAY'S MARKETS STOCKS CLIMB IN SLOW TRADING BONDS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES CLIMBED WEDNESDAY IN QUIET PREHOLIDAY TRADING BOND PRICES WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE GAINED 1341 POINTS TO 368758 STANDARD & POOR'S 500STOCK INDEX ROSE 133 TO 46236 AND THE NASDAQ COMPOSITE INDEX JUMPED 636 TO 75318 STOCKMARKET INVESTORS WERE ENCOURAGED BY A HOST OF POSITIVE ECONOMIC NEWS A LOWERTHANEXPECTED INCREASE LAST WEEK IN INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE STRONG MIDNOVEMBER AUTO SALES AND A 2 JUMP IN DURABLEGOODS ORDERS IN OCTOBER ANOTHER DROP IN LONGTERM INTEREST RATES ALSO HELPED LIFT INVESTORS' SPIRITS I'M CAUTIOUSLY OPTIMISTIC ABOUT THE ECONOMIC RECOVERY SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO I'M COMFORTABLE WITH THE GOOD NEWS ON DURABLEGOODS ORDERS BUT I'M STILL UNCOMFORTABLE WITH THE LEVEL OF UNEMPLOYMENT WHICH IS TROUBLESOME NOT ONLY HERE BUT ALSO ABROAD THE STOCK MARKET WAS CLOSED YESTERDAY FOR THE THANKSGIVING HOLIDAY TODAY THERE WILL BE AN ABBREVIATED SESSION ENDING AT 1 PM LONGTERM BOND PRICES STARTED WEDNESDAY BROADLY HIGHER AS INVESTORS IGNORED THE STRONG DURABLEGOODS DATA THE LONG BOND'S REBOUND WHICH BEGAN TUESDAY CONTINUED UNTIL NEWS OF THE ROBUST AUTO SALES TRIMMED THE GAINS LATER IN THE DAY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 029 POINT TO 10856 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2293 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1209 ISSUES ROSE AND 793 FELL BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED LESS THAN ONEEIGHTH POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 630 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING WEDNESDAY THE CURRENCY WAS QUOTED AT 17023 MARKS AND 10818 YEN COMPARED WITH 17020 MARKS AND 10867 YEN TUESDAY YESTERDAY THE DOLLAR ROSE TO 17083 MARKS AND 10830 YEN IN THIN LONDON TRADING 9311260060 931126 POTOMAC WATCH UNLIKE IKE OR HOW CONGRESS DOMINATED BILL BY PAUL A GIGOT I NOW HAVE THE HIGHEST SUCCESS RATE OF ANY PRESIDENT IN HIS FIRST YEAR EXCEPT FOR EISENHOWER THE MOST PRODUCTIVE FIRST YEAR SINCE PRESIDENT EISENHOWER'S FIRST TERM IT'S ONLY FAIR THAT SEN MITCHELL SHOULD AGREE WITH MR CLINTON ABOUT HIS FIRST YEAR SINCE MR CLINTON HAS SPENT SO MUCH OF THIS YEAR AGREEING WITH SEN MITCHELL THE PAIR ARE SPINNING TO CLAIM SUCCESS BUT WHAT THEIR MUTUAL ADMIRATION REALLY SHOWS IS THAT MR CLINTON'S FIRST YEAR HAS BEEN NOTABLE FOR THE DOMINANCE OF CONGRESS THE COMPARISON TO IKE IS MORE REVEALING THAN THEY SEEM TO KNOW ACCORDING TO MICHAEL BARONE'S STERLING POLITICAL HISTORY OUR COUNTRY EISENHOWER UNDERSTOOD THAT CONGRESS'S GOP MAJORITY IN 195354 WAS MORE CONSERVATIVE THAN THE COUNTRY SO HE ADAPTED WORKED WITH DEMOCRATS AND STAYED POPULAR EVEN AS HIS PARTY LOST THE SENATE AND HOUSE MR CLINTON HAS A DEMOCRATIC MAJORITY IN CONGRESS THAT IS NOW MORE LIBERAL THAN THE COUNTRY BUT HE HAS SO FAR LARGELY CONFORMED TO ITS AGENDA NOT VICE VERSA THAT MAY EXPLAIN WHY DESPITE HIS SELFPROCLAIMED SUCCESS AT BREAKING GRIDLOCK MR CLINTON'S PUBLIC APPROVAL REMAINS BELOW 50 THE YEAR BEGAN WITH MR CLINTON PROPOSING A NEW POLICY ON GAYS IN THE MILITARY WHICH WAS STOPPED BY A FELLOW DEMOCRAT SAM NUNN OF GEORGIA THE YEAR ENDED WITH MR NUNN STAYING COOLLY NEUTRAL ON A CLINTON DEFENSE NOMINEE MORTON HALPERIN WHO IS BEING MAULED BY REPUBLICANS MR HALPERIN HAS SO FAR RECEIVED AS MUCH PRESIDENTIAL SUPPORT AS LANI GUINIER ALONG THE WAY DEMOCRATS AND REPUBLICANS ALIKE ROLLED UP MR CLINTON'S SOMALIA POLICY AND BROUGHT ADULT SUPERVISION TO HIS ROMANCE WITH THE UNITED NATIONS MEANWHILE MR CLINTON'S ECONOMIC STIMULUS WAS DEFEATED BY A FILIBUSTER LED BY THAT NOTED EXTREMIST REPUBLICAN JOHN CHAFEE OF RHODE ISLAND MR CLINTON'S TAXING BUDGET DID FINALLY PASS BUT BY A MERE VOTE IN BOTH HOUSES THOUGH IT HAD BEEN EXPRESSLY DESIGNED TO APPEAL TO THE HUGE DEMOCRATIC MAJORITIES AND ONLY AFTER ITS BIGGEST MONEYRAISER THE BTU ENERGY TAX ON THE MIDDLE CLASS WAS PURGED BY SOUTHERN DEMOCRATS JOHN BREAUX AND DAVID BOREN THE DEMOCRAT WHO CAST THE DECIDING VOTE IN THE SENATE NEBRASKA'S BOB KERREY DID SO WHILE UPBRAIDING MR CLINTON FOR A FAILURE OF LEADERSHIP THREE MONTHS LATER SEN KERREY WAS PROCLAIMING THAT MR CLINTON HAD MADE A VERY BIG MISTAKE BY OPPOSING SPENDING CUTS NONE OF THESE DEMOCRATS SHRINK IN FEAR THAT THEY WILL PAY FOR THEIR APOSTASY NONETHELESS DECLARES HOUSE MAJORITY LEADER DICK GEPHARDT THERE WAS NO VETO OF ANY BILL THIS YEAR YOU'D HAVE TO GO BACK A LONG TIME TO FIND A YEAR IN WHICH A BILL WAS NOT VETOED HE MEANS THIS AS A COMPLIMENT BUT HE ALSO MEANS MR CLINTON DID LITTLE TO UPSET MR GEPHARDT MR CLINTON BEGAN BY ENDORSING FAMILY LEAVE A HARDY DEMOCRATIC PERENNIAL THEN HE LIBERALIZED THE HATCH ACT WHICH WAS AN EFFORT BY THE PARTY OF GOVERNMENT TO GIVE MORE POWER TO GOVERNMENT WORKERS AND DON'T FORGET THE MOTOR VOTER BILL WHICH MADE IT EASIER FOR POTENTIAL DEMOCRATIC VOTERS TO REGISTER TO VOTE THE ONE TIME MR CLINTON DID CHALLENGE DEMOCRATIC LEADERS ON NAFTA HE PERSUADED FEWER DEMOCRATS THAN DID THOSE LEADERS MR GEPHARDT WON SIX OF EVERY 10 HOUSE DEMOCRATS ON NAFTA WHILE MR CLINTON WAS RESCUED BY NEWT GINGRICH MR CLINTON'S RESPONSE TO THIS WAS TO JOIN MR GEPHARDT IN CRUSHING THE BIPARTISAN PENNYKASICH REVOLT TO CUT 90 BILLION MORE IN SPENDING OVER FIVE YEARS THEY BARELY PREVAILED AGAIN 219213 HEARD ABOUT THE LINEITEM VETO LATELY NEITHER HAS CONGRESS REINVENTING GOVERNMENT WAS INTRODUCED WITH MUCH FANFARE BUT HAS VANISHED IN CONGRESS WITH BARELY A GURGLE A YEAR THAT BEGAN WITH MR CLINTON PRAISING THE CONGRESSIONAL BUDGET OFFICE FOR ITS IMPARTIALITY ENDED WITH VICE PRESIDENT AL GORE ATTACKING THE SAME CBO FOR SAYING HIS REINVENTION IDEAS WOULD SAVE LITTLE MONEY TIM PENNY THE MINNESOTA DEMOCRAT TURNED PARTY CONSCIENCE SAYS THAT WITH THE EXCEPTION OF NAFTA EVERYTHING THEY'VE DONE HAS BEEN TACTICAL DESIGNED TO APPEAL TO DEMOCRATIC CONSTITUENCIES ON REINVENTING GOVERNMENT HE SAYS THEY SENT IT UP TO CONGRESS WITH NO STRATEGY ON CAMPAIGN FINANCE MR CLINTON HAS ABDICATED COMPLETELY TO CONGRESS THE HOUSE BILL JUST PASSED INCLUDES MANY EXEMPTIONS FOR DEMOCRATIC INTERESTS SUCH AS EMILY'S LIST THE FEMINIST FUNDRAISING GROUP THAT GIVES MAINLY TO DEMOCRATS ADMIRING THIS HANDIWORK SEN MITCHELL SAYS THAT IF THE CLINTON HEALTH CARE PLAN PASSES NEXT YEAR THIS CONGRESS WILL DESERVE TO BE CALLED HISTORIC BUT LISTEN TO SEN BREAUX WHO SAYS HEALTH CARE IS A GOOD EXAMPLE OF THE BATTLE FOR THE SOUL OF BILL CLINTON THE PRESIDENT'S PROPOSAL IS LIKE HIS FIRST BUDGET PLAN HE SAYS DESIGNED FOR A LIBERAL COALITION THAT LACKS THE VOTES TO PREVAIL THE BIGGEST SUCCESS SO FAR HAS BEEN A BIPARTISAN STRATEGY MR BREAUX ADDS CITING NAFTA PERHAPS AS HE THINKS ABOUT RATHER THAN SPINS HIS FIRST YEAR RECORD MR CLINTON WILL CONSIDER THIS BREAUX LESSON IT'S THE ONLY WAY HE'S REALLY GOING TO BE LIKE IKE 9311260059 931126 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER SPENDINGCUT FEVER IS LIKELY TO SPREAD IN CONGRESS NEXT YEAR NEW ATTEMPTS TO LOWER SPENDING CEILINGS ARE VOWED AFTER STRONG EFFORTS THIS YEAR FISCAL CONSERVATIVES HAVE SHATTERED THE MYTH THAT A COALITION OF DEMOCRATS AND REPUBLICANS CAN'T BE FORMED TO PUSH SPENDING REDUCTIONS SAYS SEN KERREY THE NEBRASKA DEMOCRAT STARTLES THE WHITE HOUSE BY PROPOSING CUTS IN BENEFIT PROGRAMS SHORTLY AFTER AGREEING TO HELP HEAD A COMMISSION ON THE SUBJECT A TOP WHITE HOUSE ECONOMIC AIDE SAYS CLINTON'S BUDGET WILL SHOW JUST HOW TIGHT THE SPENDING LIDS ARE ALREADY ONE BIG PROBLEM TO MEET DEFICIT GOALS THE PENTAGON COUNTS ON SAVINGS FROM ELIMINATING 160000 JOBS BUT THE SENATE ALREADY TAPS THAT MONEY TO PAY FOR MORE POLICE AND PRISON CELLS BACKERS OF A BALANCEDBUDGET CONSTITUTIONAL AMENDMENT GEAR UP FOR A VOTE IN THE SENATE EARLY NEXT YEAR CLINTON HITS THE ROAD TO WHIP UP SUPPORT FOR HIS 1994 AGENDA HE PLANS TRIPS TO NEW MEXICO AND CALIFORNIA TO PROMOTE HIS HEALTH PLAN WELFARE OVERHAUL AND A JOBRETRAINING INITIATIVE GORE PLANS A SPEECH NEXT MONTH IN BOSTON PROBABLY AT HARVARD ON COMMUNITY INVOLVEMENT KEYED TO WELFARE REFORM AND A COMING CRIME PROPOSAL TREASURY AND WHITE HOUSE OFFICIALS MAP A STRATEGY TO WOO BUSINESS SUPPORT FOR CLINTON'S HEALTHCARE PLAN THE RECENT RESIGNATIONS OF SOME TOP WHITE HOUSE AIDES COULD SLOW THE EFFORTS THE HEALTHCARE PUSH MUST FIND A NEW CAMPAIGN MANAGER IF HAROLD ICKES WHO IS SLATED FOR THE POST INSTEAD BECOMES DEPUTY CHIEF OF STAFF THE RESTRUCTURING OF THE WHITE HOUSE STAFF PROBABLY WILL FURTHER INCREASE THE INFLUENCE OF COUNSELOR DAVID GERGEN CONGRESS'S FINAL DAYS BEFORE THIS WEEK'S RECESS FORESHADOW MORE SKIRMISHES SENATE REPUBLICANS SEEK TO AGGRAVATE TENSIONS BETWEEN DEMOCRATS ON MOYNIHAN'S FINANCE COMMITTEE AND KENNEDY'S LABOR COMMITTEE OVER HEALTHCARE JURISDICTION LIBERALS FEAR THE FINANCE PANEL IS TOO DIVIDED TO PRODUCE A STRONG VERSION OF CLINTON'S PLAN THE HEALTH FIGHT WILL SPILL OVER INTO THE BUDGET DEBATE GOP SEN DOMENICI OF NEW MEXICO WARNS AS ALL SIDES SCRAP OVER SAVINGS FROM MEDICARE CUTS CONTROVERSIAL LEFTOVERS REMAIN THE HOUSE LEFT WITHOUT ACTING ON PROPOSED RESTRICTIONS ON MEALS AND TRAVEL PAID FOR BY LOBBYISTS CAMPAIGNFINANCE REFORM WILL BE AN ELECTIONYEAR ISSUE FOR BOTH HOUSES NEGOTIATIONS THAT STALLED THE BRADY BILL SHOW CONSERVATIVE GOP PRESSURE ON DOLE THE DEPARTURE OF CHIEF WHITE HOUSE CONGRESSIONAL LOBBYIST PASTER IS A MAJOR LOSS FOR CLINTON REP ROSTENKOWSKI OF ILLINOIS SAYS CHINA CARDS US EFFORTS TO EXPLORE MORE DEALINGS WITH CHINA SPARK OPTIMISM BY US PRODUCERS OF FIVE COMMUNICATIONS SATELLITES SLATED TO BE LAUNCHED BY CHINESE FIRMS THEY ARE HOPEFUL THAT CLINTON WILL LIFT SANCTIONS BARRING THE DEALS IN ANOTHER MOVE TREASURY CHIEF BENTSEN PLANS A TRIP TO BEIJING IN JANUARY LENDING LOOPHOLE COMMUNITY GROUPS ARE ANGERED THAT PROPOSED RULES TO ENFORCE A LAW REQUIRING BANKS TO LEND MORE IN THEIR NEIGHBORHOODS WOULD EASE REPORTING RULES FOR SMALL BANKS AMOUNTING TO ABOUT 80 OF THE NATION'S BANKS THE LAW COMPLAINS THE CONSUMER FEDERATION'S CHRIS LEWIS WAS AIMED AT PROTECTING COMMUNITIES NOT BANKS INDUSTRIOUS GENERAL GEN MICHAEL CARNS THE AIR FORCE'S NO 2 OFFICER AND AN INDUSTRIALPOLICY ADVOCATE IS THE TOP CONTENDER TO BE THE JOINT CHIEFS' VICE CHAIRMAN HE HAS ARGUED FOR GRADUALLY MOVING TO THE PRIVATE SECTOR MOST OF THE 5 BILLION A YEAR THAT THE AIR FORCE SPENDS ON MAINTAINING ITS AIRCRAFT FOODSAFETY DELAYS UPSET CONSUMER GROUPS TWO MONTHS AFTER PROCLAIMING A NEW POLICY ON PESTICIDES REGULATION CLINTON OFFICIALS HAVEN'T PROPOSED A BILL TO CARRY IT OUT FEW MAJOR CHANGES ARE MADE IN MEAT INSPECTION DESPITE AGRICULTURE CHIEF ESPY'S PLEDGE FOR AN OVERHAUL THE AGRICULTURE AGENCY SAYS IT IS MOVING AS FAST AS IT CAN CLOSING SLAUGHTERHOUSES AND SURVEYING POULTRY PLANTS CLINTON TURNS TO TOUGH ISSUES IN EUROPE AFTER NAFTA AND ASIAN TALKS US OFFICIALS ARE WARY ABOUT A PROPOSED GERMANFRENCH PLAN FOR BOSNIA THEY WORRY THAT THE PLAN TO PROMISE THE SERBS A PHASED SUSPENSION OF SANCTIONS IF THEY GIVE UP A BIT MORE TERRITORY TO THE MUSLIMS COULD LOOK LIKE CAVING IN TO THE SERBS THEY ALSO FEAR THE US WOULD HAVE TO PROVIDE TROOPS TO ENFORCE ANY AGREEMENT THE ADMINISTRATION SEEKS A STRATEGY FOR COMPLETING WORLD TRADE TALKS BY THE DEC 15 DEADLINE A PLAN FOR THE US AND THE EUROPEAN COMMUNITY TO JOINTLY PRESS FOR CONCESSIONS FROM JAPAN FALLS FLAT THE FRENCH PARLIAMENT PLANS TO TAKE UP TRADE ISSUES BEFORE THE DEADLINE ADDING PRESSURE ON THE EC NOT TO GIVE IN TO US DEMANDS ON SUCH ISSUES AS AGRICULTURE CLINTON IN A TRIP TO EUROPE IN JANUARY WILL TRY TO SMOOTH EUROPEAN FEATHERS RUFFLED BY US TALK OF THE GROWING IMPORTANCE OF ASIA MINOR MEMOS JESSE JACKSON'S NATIONAL RAINBOW COALITION CALLS ITS NEWSLETTER THE JAXFAX BYOB TREASURY'S BENTSEN TOLD THAT HE COULDN'T SPEND GOVERNMENT MONEY FOR AN IMPROMPTU PARTY AFTER PASSAGE OF LEGISLATION THIS WEEK GOES HOME TO GET HIS OWN BEER AND WINE MONETARY PERK THE FEDERAL RESERVE BANK OF BOSTON HAS A BILLIARDS ROOM 9311260058 931126 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG WEDNESDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ANCHOR GLASS CONTAINER CORP 200 MILLION OF SENIOR SUBORDINATED DEBENTURES DUE DEC 15 2008 PRICED AT PAR TO YIELD 9875 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR SEVEN YEARS ARE RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP MOBILEMEDIA COMMUNICATIONS INC 125898 MILLION PROCEEDS OF SENIOR SUBORDINATED DEFERREDCOUPON NOTES DUE DEC 1 2003 PRICED AS 59948S FOR A 105 YIELD ACCORDING TO MCM CORPORATEWATCH THE NOTES WON'T PAY INTEREST FOR THE FIRST FIVE YEARS AND THE COUPON FOR THE LAST FIVE YEARS IS 105 NONCALLABLE FOR FIVE YEARS THE NOTES ARE RATED SINGLEB3 BY MOODY'S AND TRIPLECPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP BANCO FRANCES E BRASILEIRO SA BRAZIL 50 MILLION OF 8875 EUROBONDS DUE DEC 6 1996 AT ISSUE AND FIXED REOFFER PRICE 999 VIA CREDIT LYONNAIS EUROSECURITIES LTD AT REOFFER PRICE BONDS YIELD A SPREAD OF 440 BASIS POINTS OVER THREEYEAR US TREASURY NOTE FEES ONE INTEREST PAYABLE SEMIANNUALLY COMPANIA SUD AMERICANA DE VAPORES CHILE 100 MILLION OF 7375 EUROBONDS DUE DEC 8 2003 AT ISSUE PRICE 9934 VIA CITIBANK INTERNATIONAL PLC AT REOFFER PRICE BONDS YIELD 747 A SPREAD OF 170 BASIS POINTS OVER 10YEAR US TREASURY NOTE FEES 075 INTEREST IS PAYABLE SEMIANNUALLY EUROPEAN INVESTMENT BANK SUPRANATIONAL 20 BILLION SPANISH PESETAS OF 79 EUROBONDS DUE DEC 15 1998 AT ISSUE PRICE 10139 VIA BANCO BILBAO VIZCAYA SA AT COMANAGER'S BREAKEVEN PRICE 9989 BONDS YIELD 793 A SPREAD OF EIGHT BASIS POINTS BELOW COMPARABLE SPANISHGOVERNMENT BOND FEES 1625 INCLUDED IS SPECIAL LEAD MANAGER'S FEE OF 0125 HENDERSON LAND FINANCE CAYMAN ISLANDS LTD HONG KONG PARENT 300 MILLION OF 6 EUROBONDS DUE DEC 8 1998 AT ISSUE AND FIXED REOFFER PRICE 9915 VIA GOLDMAN SACHS INTERNATIONAL BONDS PRICED TO YIELD 62 A MARGIN OF 95 BASIS POINTS ABOVE WHENISSUED US TREASURY OF NOVEMBER 1998 GUARANTOR HENDERSON LAND DEVELOPMENT CO LTD FEES 05 MARUBENI CORP JAPAN 10 BILLION YEN OF 3 EUROBONDS DUE MARCH 30 1998 AT ISSUE AND FIXED REOFFER PRICE 10035 VIA BANK OF TOKYO CAPITAL MARKETS BONDS PRICED TO YIELD 291 ISSUE LAUNCHED OFF BORROWER'S EUROMEDIUMTERM NOTE PROGRAM FEES 025 NIKKEN CHEMICALS CO JAPAN 150 MILLION MARKS OF 1625 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE DEC 16 1997 AT ISSUE PRICE PAR VIA DAIWA EUROPE DEUTSCHLAND GMBH WARRANTS CONVERTIBLE INTO ORDINARY SHARES OF THE COMPANY FROM JAN 10 TO DEC 10 1997 CONVERTION TERMS TO BE SET NOV 29 FEES 2835 INCLUDING SPECIAL LEAD MANAGER'S FEE OF 0185 PETACALCO TOPOLOBAMPO TRUST MEXICAN PARENT 250 MILLION OF EUROBONDS PRICED AS 8125 DUE DEC 15 2003 AT ISSUE AND FIXED REOFFER PRICE 99569 VIA SALOMON BROTHERS INTERNATIONAL LTD BONDS SECURED ON PAYMENT OBLIGATIONS ON LEASING CONTRACTS HELD BY COMISSION FEDERAL DE ELECTRICIDAD AT REOFFER PRICE BONDS YIELD SPREAD OF 240 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE INTEREST PAID SEMIANNUALLY SOCIETE NATIONALE DES CHEMINS DE FER FRANCE THREE BILLION FRENCH FRANCS OF 6 BONDS DUE NOV 2 2006 AT ISSUE PRICE 9741 VIA CREDIT LYONNAIS ISSUE SPLIT INTO INTERNATIONAL AND DOMESTIC TRANCHES OF 15 BILLION FRANCS EACH BONDS WILL TRADE INTERCHANGEABLY WITH FOUR BILLION FRANCS OF IDENTICAL BONDS OUTSTANDING TOTAL ISSUE NOW SEVEN BILLION FRANCS SPLIT EVENLY INTO INTERNATIONAL AND DOMESTIC TRANCHES NEW BONDS ARE BEING REOFFERED TO INVESTORS AT 9646 TO YIELD 641 A LAUNCH SPREAD OF 17 BASIS POINTS ABOVE INTERPOLATED YIELD CURVE BETWEEN 825 FRENCH TREASURY OF 2004 AND 85 TREASURY OF 2008 FEES 13 UPPSALA SWEDISH MUNICIPALITY 110 MILLION OF FLOATINGRATE EURONOTES DUE DEC 8 1998 AT ISSUE AND FIXED REOFFER PRICE 996875 VIA LEAD NOMURA INTERNATIONAL PLC INTEREST PAID SEMIANNUALLY AND FLOATS AT 01875 POINT ABOVE LIBOR FEES 02 VIENNA AUSTRIAN MUNICIPALITY 100 MILLION SWISS FRANCS OF 4 PRIVATELY PLACED NOTES DUE DEC 30 1996 PRICED AT 10175 VIA MERRIL LYNCH BANK FEES 125 VSB GROEP NV DUTCHBELGIAN PARENT 250 MILLION DUTCH GUILDERS OF 625 EUROBONDS DUE JAN 13 2004 AT ISSUE PRICE 1011 VIA KBW EFFECTENBANK BV REOFFERED AT 10035 TO YIELD 620 A SPREAD OF 37 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES UNDISCLOSED 9311260057 931126 LETTERS TO THE EDITOR ENVIRONMENTALISTS AND CALIFORNIA FIRES GEORGE MELLOAN APPARENTLY WILL SAY ANYTHING TO ATTACK ENVIRONMENTALISTS CALIFORNIA AGAIN IS A NATURAL BURN' VICTIM GLOBAL VIEW NOV 1 THIS IS TOO BAD BECAUSE HIS COLUMN ON THE LOS ANGELES FIRE COULD HAVE MADE A STRONG AND VALID POINT AGAINST RELYING UPON CENTRALIZED COMMAND AND CONTROL APPROACHES TO SOLVING ENVIRONMENTAL PROBLEMS MOST ENVIRONMENTALLY AWARE PEOPLE TO MY KNOWLEDGE SUPPORT CONTROLLED BURNS PARTICULARLY WHEN THE FUEL BUILDUP IS ARTIFICIALLY HIGH BECAUSE OF YEARS OF FIRE SUPPRESSIONS RIGIDLY AND MINDLESSLY ENFORCED NATIONALLY MANDATED CLEAN AIR STANDARDS PREVENT CONTROLLED BURNS EVEN IN AREAS WHERE FIRE DANGER IS SUBSTANTIAL POINT REYES NATIONAL SEASHORE NORTH OF SAN FRANCISCO IS A CURRENT EXAMPLE THE CLEAN AIR ACT SEEKS LAUDABLE GOALS BY BUREAUCRATIC FIAT SUBORDINATING A COMPLEX ENVIRONMENT TO A SINGLE STANDARD COMMAND AND CONTROL IS NOT A GOOD WAY TO PROTECT ENVIRONMENTAL VALUES AND AS THEY REALIZE THIS MORE AND MORE ENVIRONMENTALISTS ARE DISCOVERING ADVANTAGES IN LOCAL CONTROL VOLUNTARY INITIATIVES AND MARKET MECHANISMS ENVIRONMENTAL CONCERNS ARE NOT GOING TO GO AWAY MUCH MORE GOOD CAN COME FROM INTELLIGENTLY ANALYZING ENVIRONMENTALLY COMPLEX ISSUES SHOWING HOW SOCIETY AND NATURE CAN COEXIST THAN NAMECALLING AND FINGERPOINTING ENVIRONMENTAL HYSTERICS DO NOT HELP CREATE A BETTER WORLD AND NEITHER DO EQUALLY UNFAIR CRITICISMS SUCH AS MR MELLOAN'S GEORGE MELLOAN WAS INDEED PRESCIENT FINALLY ENVIRONMENTAL RADICALISM MUST SHIFT FROM OFFENSE TO DEFENSE IN ADDITION TO NUMEROUS BUNGLES BY THE FIRE CONTROL AUTHORITIES AMONG MUCH HEROISM THE FIRE HERE AT LAGUNA WAS AN INCREDIBLE TALE OF ENVIRONMENTAL DECISIONS GONE AWRY FOR MORE THAN 15 YEARS FOLKS URGED THAT LAGUNA CANYON ROAD BE WIDENED AND STRAIGHTENED TO ELIMINATE THE BIG BEND THAT KILLED SO MANY MOTORISTS IN THE PAST SAVE THE CANYON GROUPS KILLED THIS PROPOSAL SO WHERE DID THE FIRE CROSS INTO THE OTHER HALF OF LAGUNA RIGHT AT THE BIG BEND AND WHY WERE SO MANY FIREMEN PICTURED ON TV STANDING AND WATCHING HOMES BURN THEY WERE OUT OF WATER THE SAME EXTREMISTS NIXED THE RESERVOIRS NECESSARY FOR WATER STORAGE IN THE AREA AND BEFORE THE FIRE EVEN APPROACHED LAGUNA A MAJOR DEFENSE LINE WOULD HAVE BEEN AVAILABLE ALONG THE SAN JOAQUIN FREEWAY STILL UNBUILT AFTER MORE THAN 10 YEARS THANKS TO ENVIRONMENTAL EXTREMISM AND WILLIE BROWN WHO HAS ORANGE COUNTY PHOBIA AND WHAT HAPPENED TO MR MELLOAN'S CONTROLLED BURNS PROPOSED BY SANER MINDS HERE NIXED AGAIN BY THESE SAME EXTREMISTS BECAUSE OF A FEW GNATCATCHERS THESE BIRDS ARE SUPPOSEDLY ENDANGERED DESPITE NUMEROUS BRETHREN IN MEXICO THE SAD PART IS WE COULD HAVE HAD IT ALL THE RESERVOIRS THE WIDE SAFE LAGUNA CANYON ROAD THE FREEWAY CONTROLLED BURNS AND AN INTACT CITY AND STILL HAVE A BIG BEAUTIFUL CANYON PARK GNATCATCHERS AND ALL BUT NO THERE IS NO COMPROMISE WITH EXTREMISTS 9311260056 931126 HEARD ON THE STREET HARCOURT'S THEATER SPINOFF IS HOT BOX OFFICE BUT SOME SAY THIS IS NO TIME TO WAIT IN LINE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DIVIDE AND DROOL INVESTORS ARE SALIVATING OVER GC COS WHICH IS BEING CREATED BY SPINNING OFF HARCOURT GENERAL'S CINEMA DIVISION AS A SEPARATE ENTITY THE PRICE OF ADMISSION HOWEVER LOOKS AWFULLY STEEP GC'S SHARES BEGAN TRADING ON A WHENISSUED BASIS TUESDAY JUMPING ONE POINT TO CLOSE AT 33 WEDNESDAY THE SHARES DIDN'T EVEN OPEN FOR TRADING BECAUSE PURCHASE ORDERS FAR OUTSTRIPPED SELL ORDERS AFTER AN ALEX BROWN ANALYST ISSUED A STRONG BUY RECOMMENDATION THOUGH THE STOCK DIDN'T TRADE THE LAST INDICATED PRICE WAS 36 TO 38 WHY ALL THIS FUSS GC IS THE NEW INVESTMENT AND ACQUISITION VEHICLE FOR HARCOURT CHAIRMAN RICHARD A SMITH WHOSE ASTUTE BUYING AND SELLING OF BUSINESSES HAS EARNED HIM A LOYAL FOLLOWING ON WALL STREET BUT DESPITE MR SMITH'S RECORD SOME PEOPLE THINK INVESTORS SHOULD HOLD OFF FROM PURCHASING GC ON THE NOTION THAT THEY WILL GET A CHANCE TO BUY THE STOCK LATER AT A LOWER PRICE THE COMPANY IS RECEIVING UNPRECEDENTED INTEREST IN THE SPINOFF BECAUSE OF DICK SMITH'S HISTORY OF SUCCESS SAYS KARA CHESEBY AN ANALYST WITH BALTIMORE'S LEGG MASON WOOD WALKER I THINK GC WILL GET A HOOPLA KIND OF EARNINGS MULTIPLE IN ALL LIKELIHOOD THAT HIGH VALUATION WILL GRADUALLY EVAPORATE AT FIRST BLUSH GC LOOKS LIKE AN INTRIGUING BUY IN THE PAST INVESTORS HAVE EARNED HANDSOME RETURNS BY INVESTING WITH MR SMITH WHOSE FAMILY OWNS 29 OF HARCOURT AND WILL HAVE A SIMILARSIZED STAKE IN GC WHEN GC STOCK IS ISSUED IN MIDDECEMBER HARCOURT'S SHAREHOLDERS WILL GET ONE SHARE OF GC FOR EVERY 10 HARCOURT SHARES THEY OWN MR SMITH HAS USED HARCOURT TO MAKE A SLEW OF PROFITABLE INVESTMENTS INCLUDING STAKES IN NEIMAN MARCUS GROUP CADBURY SCHWEPPES AND RJR NABISCO HARCOURT HAS SINCE SOLD ITS POSITIONS IN CADBURY AND RJR BUT IT STILL OWNS 65 OF NEIMAN MARCUS MR SMITH'S MOST RECENT SUCCESS HAS BEEN THE 1991 PURCHASE OF PUBLISHER HARCOURT BRACE JOVANOVICH FOR 15 BILLION INCLUDING THE ASSUMPTION OF DEBT AT THE TIME HARCOURT BRACE WAS ON THE VERGE OF BANKRUPTCYCOURT PROCEEDINGS AFTER TAKING ON A LARGE AMOUNT OF DEBT TO THWART A 1987 TAKEOVER THREAT BY THE NOWDECEASED ROBERT MAXWELL SINCE MR SMITH'S PURCHASE HARCOURT BRACE HAS ENJOYED A STUNNING TURNAROUND HELPED BY BOOMING TEXTBOOK SALES THE PUBLISHING COMPANY'S PROFITS ARE SURGING THAT IN TURN HAS BOLSTERED HARCOURT GENERAL'S BOTTOM LINE IN THE QUARTER ENDED JULY 31 HARCOURT GENERAL HAD A PROFIT OF 134 A SHARE UP FROM 89 CENTS A YEAR EARLIER SUCH RESULTS HAVE GOTTEN INVESTORS KEENLY INTERESTED IN GC WHICH LIKE HARCOURT IS BASED IN NEWTON MASS BUT AFTER THE INITIAL FLURRY OF INTEREST THERE'S A GOOD CHANCE GC'S STOCK WILL DRIFT LOWER ANALYSTS AND MONEY MANAGERS CITE THREE REASONS FIRST SOME HARCOURT INVESTORS WILL SELL THEIR GC SHARES AS SOON AS THEY GET THEM MOST OF THE PEOPLE WHO OWN HARCOURT GENERAL AT THIS POINT OWN IT BECAUSE OF THE BOOK PUBLISHING DIVISION AND NOT BECAUSE OF GC SAYS ANDREW MASSIE MANAGER OF THE 170 MILLION WARBURG PINCUS CAPITAL APPRECIATION FUND IT'S THE SORT OF THING THAT PEOPLE WILL TEND TO KICK OUT OF THEIR PORTFOLIO SECOND GC'S EARNINGS ARE LIKELY TO DECLINE IN THE YEAR AHEAD SAYS LEGG MASON'S MS CHESEBY SHE FIGURES GC WHICH OPERATES A CHAIN OF ABOUT 1350 CINEMA SCREENS AT SOME 250 LOCATIONS EARNED BETWEEN 135 AND 140 A SHARE IN THE FISCAL YEAR ENDED OCT 31 BUT RECENT EARNINGS HAVE BEEN BUOYED BY THE BLOCKBUSTER SUMMER FILM SEASON WHEN MOVIEGOERS FLOCKED TO SEE HIT FILMS SUCH AS JURASSIC PARK THE FIRM AND SLEEPLESS IN SEATTLE MS CHESEBY BELIEVES THAT IN THE 1994 FISCAL YEAR GC'S EARNINGS WILL BE LOWER DEFINITELY AND PROBABLY BELOW 1 A SHARE IF MS CHESEBY IS RIGHT GC'S INDICATED STOCK PRICE IS MORE THAN 35 TIMES NEXT YEAR'S EARNINGS SHE SAYS SHE WOULDN'T RECOMMEND THE STOCK UNLESS ITS PRICE SLIDES TO THE LOW 20S THIRD UNLESS GC MAKES A QUICK INVESTMENT OR ACQUISITION INVESTORS COULD SOON GET IMPATIENT AS MR SMITH HAS FOUND OUT IN THE PAST IN 1989 HARCOURT THEN CALLED GENERAL CINEMA SOLD ITS BOTTLING DIVISION TO PEPSICO POCKETING 12 BILLION AFTERTAX FLUSHED WITH ENTHUSIASM ABOUT MR SMITH'S INVESTMENT SAVVY INVESTORS BID UP HARCOURT'S STOCK TO 28 1/2 BUT THE NEXT ACQUISITION HARCOURT BRACE JOVANOVICH DIDN'T COME ABOUT FOR MORE THAN TWO YEARS THAT TURNED OUT TO BE TOO LONG A WAIT FOR MANY TRIGGERHAPPY INVESTORS WHOSE SELLING DROVE THE STOCK AS LOW AS 16 1/2 CASHRICH GC COULD FACE A SIMILAR FATE THE COMPANY WILL INITIALLY HAVE SOME 64 MILLION IN CASH EQUAL TO MORE THAN 8 FOR EACH GC SHARE THAT HOARD WILL GROW AS THE CINEMA DIVISION KICKS OFF CASH THAT CAN BE ADDED TO THE INVESTMENT KITTY MR SMITH MAY DO SOMETHING QUICKLY WITH THE CASH BUT IT MAY TAKE AWHILE SAYS LARRY MARX COMANAGER OF THE 19 BILLION NEUBERGER & BERMAN GUARDIAN FUND MR MARX A BIG INVESTOR IN HARCOURT PLANS TO HOLD ONTO HIS GC STOCK BECAUSE HE HAS A LOT OF CONFIDENCE IN MR SMITH'S INVESTMENT ABILITIES BUT HE'S NOT SURE ALL INVESTORS SHARE HIS LONGTERM OUTLOOK IF YOU'RE NOT A PATIENT INVESTOR YOU SHOULDN'T OWN THIS PIECE OF PAPER ARGUES MR MARX 9311260055 931126 ATTACHING STRINGS WITH COFFERS LESS FULL BIG COMPANIES ALTER THEIR GIFTS TO CHARITIES CONTRIBUTORS NOW OFTEN SEEK SOME MARKETING BENEFIT GIVE PRODUCTS NOT CASH SHINY CAR AS MUSEUM EXHIBIT BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ONE OF THE BIGGEST WORRIES AT THE MUSEUM OF SCIENCE AND INDUSTRY IN TAMPA FLA WAS KEEPING THE DUST OFF ONE OF THE EXHIBITS A NEW EAGLE VISION PARKED OUTSIDE THE FRONT DOOR CHRYSLER CORP'S JEEPEAGLE DIVISION GAVE THE MUSEUM 20000 IN EXCHANGE FOR DISPLAYING THE CAR LAST SPRING AND KEEPING IT SPARKLING CLEAN FOR ALL MUSEUMGOERS TO SEE THE CAR WAS BLACK AND WE DIDN'T WANT ANY FINGERPRINTS ON IT SAYS ANN DOWDY THE MUSEUM'S DIRECTOR OF DEVELOPMENT SO EVERY THURSDAY FOR WEEKS MS DOWDY CALLED THE WORKER WHOSE JOB IT WAS TO POLISH THE CAR YOU'RE COMING TOMORROW RIGHT' SHE WOULD NUDGE LIKE MANY INSTITUTIONS THAT WANT CORPORATE FUNDS THE MUSEUM WAS WILLING TO GO THE EXTRA MILE TO GET THE EXTRA CASH AND CHRYSLER WHAT WE WANT IS OUR CARS EXPOSED TO THE RIGHT TYPE OF PEOPLE SAYS LOU BITONTI EAGLE VISION MERCHANDISE MANAGER IN DETROIT WE DID A LOT OF RESEARCH AS TO LIFESTYLE THE EAGLE VISION BUYER IS A LITTLE MORE EDUCATED A LITTLE MORE OF THE YUPPIE DEMOGRAPHIC I THOUGHT MUSEUMS NOW HOW COULD I GET GOING ON THAT INDEED HE MADE A CALL OUT OF THE BLUE TO MS DOWDY WHO WAS EAGER TO LISTEN AND MR BITONTI HAS GOTTEN GOOD MILEAGE WE ENDED UP GOING TO 13 MUSEUMS HE SAYS SUCH QUIDPROQUO GIVING IS CHANGING THE COMPLEXION OF CORPORATE PHILANTHROPY BOTH FOR THE DONOR COMPANIES AND THE RECIPIENT INSTITUTIONS IN SOME SUBTLE BUT SIGNIFICANT WAYS THE TOUGHER CIRCUMSTANCES FACED BY CORPORATE GIANTS LIKE INTERNATIONAL BUSINESS MACHINES CORP EASTMAN KODAK CO AND OTHERS LONG KNOWN FOR THEIR CASH DONATIONS IS FUELING A TREND AWAY FROM MONETARY GIFTS AND TOWARD OTHER KINDS OF PHILANTHROPY STRATEGIES GAINING GROUND INCLUDE SUPPLYING PRODUCTS WHEN POSSIBLE TAPPING MARKETING AND ADVERTISING BUDGETS TO SUPPORT CAUSES AND SEEKING MORE RECOGNITION LAST YEAR CORPORATE GIVING OF MONEY AND INKIND GIFTS WAS ROUGHLY FLAT AT 6 BILLION OR DOWN SOME 38 AFTER ADJUSTMENT FOR INFLATION ACCORDING TO THE AMERICAN ASSOCIATION OF FUNDRAISING COUNSEL'S AAFRC TRUST FOR PHILANTHROPY BUT THE FIGURES DON'T MEASURE FUNDS FROM MARKETING OR AD BUDGETS THAT ARE INCREASINGLY EARMARKED FOR NONPROFIT INSTITUTIONS FOR SUCH THINGS AS EDUCATION THE BIGGEST CATEGORY CULTURAL PROGRAMS AND HEALTH SERVICES THE BULK OF OVERALL GIVING CONTINUES TO COME FROM INDIVIDUALS WHO CONTRIBUTED 88 OF THE TOTAL 12431 BILLION DONATED TO NONPROFITS IN 1992 THAT TOTAL WAS UP 64 FROM 1991 THOUGH NOT AS MUCH AFTER ADJUSTING FOR INFLATION TODAY COMPANIES LIKE IBM AND KODAK ARE FOCUSING MORE ON PRACTICAL PHILANTHROPY IN 1992 DESPITE A LOSS OF NEARLY 5 BILLION IBM GAVE AWAY 1183 MILLION WORLDWIDE THAT WAS DOWN 20 FROM TWO YEARS EARLIER BUT STILL EASILY ENOUGH TO MAINTAIN IBM'S STATUS AS THE NATION'S BIGGEST CORPORATE DONOR DURING EARLIER PROSPEROUS YEARS IBM COULD MORE EASILY AFFORD TO FUND MANY ART EXHIBITIONS AND OTHER PROJECTS WITH PURE PHILANTHROPIC DOLLARS MEANING NO STRINGS ATTACHED THE ONLY DIRECT BUSINESS BENEFIT WAS IN ESTABLISHING AND LATER BURNISHING AN IMAGE THESE DAYS IBM OFTEN OFFERS COMPUTERS INSTEAD OF CASH ESPECIALLY TO THE COLLEGES AND UNIVERSITIES THAT RECEIVE A BIG PART OF ITS LARGESS BUT PERHAPS THE MOST VISIBLE EXAMPLE OF IBM'S COSTCUTTING IN PHILANTHROPY IS ITS DECISION TO STOP SPONSORING TRAVELING ART EXHIBITS AT THE IBM GALLERY OF SCIENCE AND ART IN NEW YORK THE 10YEAROLD GALLERY FILLED A CULTURAL NICHE BY FEATURING EXHIBITS THAT MIGHT OTHERWISE HAVE HAD TO SKIP MANHATTAN WHERE THEY ARE COSTLY TO STAGE IBM INDICATES THE ANNUAL COST OF RUNNING THE PROGRAM INCLUDING SECURITY INSURANCE AND TRANSPORTING ARTWORKS HAS BEEN HUNDREDS OF THOUSANDS OF DOLLARS THE FINAL EXHIBIT FEATURES SACRED SARDINIAN ART FROM THE 15TH AND 16TH CENTURIES AN OUTCRY OVER POSSIBLE CLOSING OF THE GALLERY HAS PROMPTED IBM TO KEEP THE SPACE OPEN AT LEAST FOR NOW BUT ONLY AS A SHOWCASE FOR EXISTING COLLECTIONS RICHARD BERGLUND DIRECTOR OF CULTURAL AFFAIRS AND A 30YEAR IBM VETERAN NOTES THAT NEARLY 750000 PEOPLE HAVE BEEN VISITING EACH YEAR INCLUDING REGULARS WHO NOTICE THE SLIGHTEST CHANGE IF WE SO MUCH AS MOVE A BENCH SOMEONE WILL SAY WHERE'S THAT BENCH THAT BENCH IS WHERE MY FRIEND IS SUPPOSED TO MEET ME' HE SAYS SOME CHILDREN IN ROCHESTER NY MAY ALSO BE MISSING THEIR BENCH THE ONE NEAR HOME PLATE KODAK RECENTLY DROPPED A SPORTS PROGRAM BORN OUT OF PATRIOTISM AND PATERNALISM 50 SEASONS AGO DURING WORLD WAR II MANY OF ROCHESTER'S DADS WERE OVERSEAS AND MANY MOMS WERE WORKING THEIR SHIFTS AT THE KODAK PLANT SO THE COMPANY BACKED A SUMMER YOUTH LEAGUE THAT STARTED WITH BOYS AND BASEBALL AND GREW OVER THE YEARS TO INCLUDE GIRLS AND OTHER SPORTS LAST SUMMER THE YOUTH LEAGUE WAS DROPPED WHEN KODAK COULD NO LONGER JUSTIFY PAYING FOR IT OUT OF THE IMAGING BUSINESS'S MARKETING BUDGET SAYS STANLEY WRIGHT DIRECTOR OF CORPORATE CONTRIBUTIONS BUT THE COMPANY COULD JUSTIFY THE COST OF SPONSORING THE EMPIRE STATE GAMES AN OLYMPICSTYLE COMPETITION FOR YOUNG ATHLETES THAT WAS HELD IN ROCHESTER THIS YEAR THE GAMES OFFERED A MUCH BETTER CHANCE OF DRAWING ATTENTION TO KODAK'S IMAGING PRODUCTS THAN DOES A BUNCH OF CHILDREN SWATTING TENNIS BALLS OUR MARKETING PEOPLE GET DOWN TO COUNTING HOW MANY MORE PHOTOS ARE TAKEN BECAUSE OF THAT INVESTMENT SAYS MR WRIGHT AS WELL AS CALCULATING HOW THE PROGRAM HELPS THE SALE OF YOUTH PRODUCTS ANYONE COMING TO THE COMPANY LOOKING FOR MAJOR SUPPORT OF A NOTFORPROFIT NEEDS TO IDENTIFY WHAT THE QUID PRO QUO WILL BE FOR THE CORPORATION HE SAYS ALTHOUGH HE DISTINGUISHES BETWEEN THIS KIND OF MARKETING DRIVEN PROGRAM AND THE LONGRANGE OBJECTIVES OF ITS OVERALL CORPORATE CONTRIBUTIONS MANY COMPANIES THAT MAKE CONSUMER GOODS HAVE BEEN RAISING THE RATIO OF PRODUCTTOCASH IN THEIR GIVING THE TREND HAS HELPED CATAPULT SECOND HARVEST A CHICAGO GROUP THAT RECEIVES MOSTLY PRIVATE SUPPORT IN GIFTS OF FOOD TO THE FOURTHLARGEST PUBLIC CHARITY IN THE US THE BIGGEST IN 1992 WAS THE SALVATION ARMY FOLLOWED BY CATHOLIC CHARITIES USA SAYS THE NEWSPAPER CHRONICLE OF PHILANTHROPY THE NATIONAL UNITED JEWISH APPEAL RANKED THIRD AT MERCK & CO PURE CASH GRANTS FROM THE MERCK FOUNDATION LAST YEAR ROSE 12 TO 218 MILLION BUT GIFTS OF PRODUCTS SOARED 60 TO 47 MILLION WITH THE RESULT THAT MERCK'S TOTAL CONTRIBUTIONS ROSE 40 TO 688 MILLION THE WHITEHOUSE STATION NJ DRUG COMPANY EXPECTS THIS YEAR'S CASH GIVING TO BE FLAT BUT IT SEES A STRONG POTENTIAL FOR A SIZABLE INCREASE IN PRODUCT GIFTS THE RECENT JUMP IN INKIND GIVING IS DUE TO BETTER DISTRIBUTION OF THE DONATED DRUG MECTIZAN WHICH TREATS THE DISEASE THAT OFTEN LEADS TO RIVER BLINDNESS IN AFRICA AND CENTRAL AND SOUTH AMERICA COMPANIES TEND TO GIVE IN COMMUNITIES WHERE THEY DO BUSINESS SO RELOCATIONS AND PLANT CLOSINGS CAN HURT LOCAL NONPROFITS MANY OF THE CHANGES ARE SUBTLE THE NEW YORK ARTS COMMUNITY FOR INSTANCE IS THOUGHT TO BE SUFFERING PARTLY FROM THE RELOCATION OF SOME BIG CORPORATE SUPPORTERS SAYS THE BUSINESS COMMITTEE FOR THE ARTS A NONPROFIT GROUP OF EXECUTIVES WHO ENCOURAGE BUSINESS/ARTS ALLIANCES EVEN WITHOUT RELOCATIONS CORPORATE AMERICA IS WITHDRAWING FROM THE ARTS IN DROVES SAYS MILTON RHODES PRESIDENT OF THE AMERICAN COUNCIL FOR THE ARTS A NEW YORKBASED COALITION OF 106 NATIONAL ARTS GROUPS OF COURSE SUCH GROUPS HAVE CRIED POVERTY BEFORE BUT NOW MANY COMPANIES WANT THEIR CONTRIBUTIONS EXECUTIVES TO SHOW THAT GIFTS TO ANY SORT OF NONPROFIT GROUP HELP THE BOTTOM LINE SAYS CRAIG SMITH EDITOR OF THE CORPORATE PHILANTHROPY REPORT NEWSLETTER SOME MANAGERS ARE IN A PANIC BECAUSE THEIR BOSSES THREATEN BUDGET CUTS OR JOB LOSS IF THEY CAN'T DELIVER HARD NUMBERS SHOWING SUCH A LINK HE ADDS THIS WEEK SUCH QUIDPROQUO CORPORATE GIVING WAS A HOT TOPIC AMONG CONTRIBUTIONS MANAGERS ATTENDING A TORONTO MEETING OF THE CONFERENCE BOARD OF CANADA SAYS MR SMITH HE SAYS THE SIMPLISTIC CARINFRONTOFTHEMUSEUM APPROACH CAN BE COUNTERPRODUCTIVE BECAUSE IT MAY APPEAR SELFSERVING INSTEAD A MORE SOPHISTICATED APPROACH IS DEVELOPING RESEARCH SHOWS THAT AS THE BABY BOOMERS MOVE INTO AFFLUENCE YOU CAN APPEAL TO THEM MUCH MORE THROUGH THEIR SENSE OF SOCIAL RESPONSIBILITY MR SMITH SAYS A FIRM WISHING TO APPEAL TO SUCH CONSUMERS MIGHT WANT TO SPONSOR THE HOMELESS HE SUGGESTS AS FOR ARTS GIVING MR RHODES WORRIES THAT WHEN IT COMES TO FIGHTING THE PROBLEMS OF SOCIETY CORPORATIONS DON'T SEE US AS A PROBLEM' THIS YEAR HIS GROUP WILL RECEIVE 2500 FROM IBM AS MEMBERSHIP DUES NOT THE 5000 IN PAST YEARS ANNE KLEPPER A FORMER SENIOR RESEARCH ASSOCIATE AT THE CONFERENCE BOARD IN NEW YORK WORRIES THAT SMALL ORGANIZATIONS OF ALL TYPES MAY BE LEFT OUT OF QUIDPROQUO PHILANTHROPY STRATEGIES FOR A DECADE I'VE BEEN HEARING PEOPLE CRY WOLF AND THE WOLF ISN'T AT THE DOOR SHE SAYS BUT THE WOLF MAY SHOW UP NOW MAYBE THE WOLF IS GROWLING MEANWHILE WHETHER PUBLIC COMPANIES SHOULD BE INVOLVED IN PHILANTHROPY AT ALL CONTINUES TO BE DEBATED BY ECONOMISTS CORPORATE GIVING IS JUST A CONCEALED FORM OF BUSINESS EXPENSE MILTON FRIEDMAN CONTENDS BUT PAUL SAMUELSON REASONS THAT THE CORPORATION IS A VERY IMPORTANT PART OF A MODERN SOCIETY AND IT IS NOT A MISUSE OF ITS FUNDS TO BE GOOD CITIZENS AND TO BE PHILANTHROPIC