MAGMA COPPER CO TUCSON ARIZ SAID IT ISSUED 18 MILLION SHARES OF 6 CUMULATIVE PREFERRED CONVERTIBLE STOCK AT 50 PER SHARE PROCEEDS FROM THE 90 MILLION OFFERING WILL BE USED FOR GENERAL CORPORATE PURPOSES WHICH MAY INCLUDE NEW PROJECTS THE MINING COMPANY SAID LEAD UNDERWRITER FOR THE OFFERING WAS MERRILL LYNCH & CO 9311260053 931126 LETTERS TO THE EDITOR CONSERVATIVES HEARD THE CRY LONG AGO I MUST ANSWER THE CHARGE LEVELED BY NOV 5 LETTER WRITER BARBARA JOHNSON AT DOROTHY RABINOWITZ'S OCT 4 LEISURE & ARTS ESSAY A NEW FRANKNESS ABOUT RACE AND CRIME WHEN MS JOHNSON'S PARENTS AND OTHER BLACK PEOPLE WERE CRYING OUT FOR HELP AGAINST CRIME ONLY CONSERVATIVES HEARD THE CRY AND TRIED TO HELP UNFORTUNATELY THE LIBERAL ESTABLISHMENT INCLUDING THE MEDIA ACCUSED ANYONE WHO ATTEMPTED TO DO ANYTHING ABOUT CRIME IN THE BLACK COMMUNITIES OF BEING A RACIST MS JOHNSON IS POINTING HER FINGER IN THE WRONG DIRECTION AND ACCUSING THE WRONG PEOPLE IT IS EITHER THE CRUELEST OF IRONIES TO ACCUSE A CONSERVATIVE OF IGNORING CRIME UNTIL IT FINDS ITS WAY INTO THE WHITE SUBURBS LAW AND ORDER HAS BEEN A CORNERSTONE OF CONSERVATIVE POLITICS AS FAR BACK AS I CAN REMEMBER BUT ANYONE WHO ADVOCATED LAW AND ORDER WAS ACCUSED OF RACISM AND POLICE WE WERE TOLD WERE VIEWED AS AN OCCUPYING ARMY IN BLACK COMMUNITIES IF MS JOHNSON HAS CONSISTENTLY STOOD FOR LAW AND ORDER I APOLOGIZE FOR LUMPING HER WITH THE SOCALLED CIVIL RIGHTS LEADERS WHO DID NOT THE REAL TRAGEDY IS THAT SHE AND OTHERS WHO SHARE HER CONVICTIONS HAD ALLIES IN THE CONSERVATIVE MOVEMENT AND NEVER KNEW IT THE PRESS TOLD HER WE DIDN'T CARE ABOUT HER AND TOLD US THERE WERE NONE LIKE HER WHO KNOWS WHAT WONDERS WE COULD HAVE WORKED HAD WE BEEN ABLE TO GET TOGETHER WHO KNOWS WHAT WONDERS WE CAN WORK NOW THAT WE KNOW ABOUT EACH OTHER I URGE MS JOHNSON TO CALL ON US SHE WILL FIND THAT SHE IS TRULY ONE OF US 9311260052 931126 LETTERS TO THE EDITOR ECONOMIC NATIONALIST IS A TITLE I DISCLAIM GRATEFUL AS I AM FOR THE EDITORIAL MENTION OF MY NAME ALLIANCE AGAINST PROGRESS NOV 17 I MUST DISCLAIM THE HONOR YOU WROTE THAT I WANT TO HARNASS STATE POWER TO HELP CORPORATE INTERESTS IN THE NAME OF NATIONALISM' WHICH SOUNDS LIKE WHAT WAS TRIED ONCE IN ITALY NEITHER IN ANY OF MY WRITINGS NOR IN SPEECH HAVE I EVER ADVOCATED ANY SUCH STATE INTERVENTION STILL LESS TO BENEFIT CORPORATE INTERESTS EVEN LESS FOR THE SAKE OF NATIONALISM ON THE CONTRARY IN MY NEW BOOK THE ENDANGERED AMERICAN DREAM HOW TO STOP THE THIRDWORLDIZATION OF AMERICA I STRONGLY DEPLORE THE RISE OF WHAT I CALL GEOECONOMICS IE THE PURSUIT OF NATIONAL AMBITIONS BY ECONOMIC MEANS AND THE RESULTING BIDS FOR INDUSTRIAL SUPREMACY BY ENTITIES SUCH AS THE AIRBUS CONSORTIUM OR BY STATESUPPORTED NATIONAL TECHNOLOGY PROGRAMS BY NATURE TRANSNATIONAL ECONOMIC ACTIVITY CAN BE DEFORMED ONLY BY ATTEMPTS TO FORCE IT INTO TERRITORIAL BOUNDARIES ATTEMPTS PROPELLED LARGELY BY BUREAUCRATS AND POLITICIANS WHO CAN NO LONGER HOPE TO DERIVE THEIR POWER AND PRESTIGE FROM WAR AND DIPLOMACY JAPAN IS THEIR MODEL JUST AS PRUSSIA WAS THE WIDELY IMITATED GEOPOLITICAL MODELSTATE OF A CENTURY AGO WITH THE CONSEQUENCES WE KNOW WHAT I DO ADVOCATE FOR THE US IS ONLY THE VIGOROUS PURSUIT OF GEOECONOMIC DISARMAMENT THROUGH NEGOTIATED AGREEMENTS TO PROHIBIT PRODUCTION SUBSIDIES NATIONAL R&D PROGRAMS ETC ONLY AS A LAST RESORT AND MAINLY AS A BARGAINING CHIP SHOULD THE US ENGAGE IN ANY GEOECONOMIC ACTIVITY OF ITS OWN 9311260051 931126 BUSINESS BRIEF SYNTEX CORP PHARMACEUTICAL COMPANY POSTS PROFIT FOR FIRST QUARTER SYNTEX CORP REPORTED HIGHERTHANEXPECTED NET INCOME FOR ITS FISCAL FIRST QUARTER BUT WARNED AGAIN THAT FUTURE EARNINGS WILL BE ADVERSELY AFFECTED BY THE LOSS OF PATENT PROTECTION FOR TWO KEY DRUGS THE PALO ALTO CALIF PHARMACEUTICAL CONCERN SAID IT EARNED 1263 MILLION OR 57 CENTS A SHARE IN THE QUARTER ENDED OCT 31 COMPARED WITH A LOSS OF 61 MILLION OR THREE CENTS A SHARE IN THE YEARAGO PERIOD THE LOSS WAS CAUSED BY A 180 MILLION CHARGE FOR RESTRUCTURING SALES ROSE 4 TO 5123 MILLION FROM 4922 MILLION THE MEAN EXPECTATION BY ANALYSTS FOR THE QUARTER WAS 54 CENTS A SHARE BUT PAUL E FREIMAN SYNTEX'S CHAIRMAN SAID THE COMPANY IS FACING A PARTICULARLY CHALLENGING YEAR BECAUSE OF THE DEC 21 EXPIRATION OF THE US PATENT FOR THE COMPANY'S LEADING PRODUCTS NAPROSYN AND ANAPROX AS WELL AS POTENTIAL PRICE PRESSURES FROM HEALTH REFORM SYNTEX CLOSED DOWN 375 CENTS AT 17375 IN COMPOSITE TRADING WEDNESDAY ON THE NEW YORK STOCK EXCHANGE 9311260049 931126 BUSINESS BRIEF FERRANTI INTERNATIONAL PLC HOLDERS ARE AGAIN URGED TO TAKE GEC'S BUYOUT BID FERRANTI INTERNATIONAL PLC AGAIN URGED SHAREHOLDERS TO TAKE GENERAL ELECTRIC CO PLC'S BUYOUT OFFER THE DIRECTORS UNDERSTAND THE UNHAPPINESS OF SHAREHOLDERS OVER THE TERMS OF THE GEC OFFERS THE TROUBLED LONDON DEFENSE CONTRACTOR SAID IN A LETTER TO SHAREHOLDERS HOWEVER IT ADDED SHAREHOLDERS MUST APPRECIATE THAT FERRANTI IS WORTH ONLY WHAT SOMEONE WILL PAY FOR IT IN ITS PRESENT CIRCUMSTANCES GEC HAS OFFERED ONE PENNY A SHARE FOR FERRANTI BRINGING THE PURCHASE PRICE TO ABOUT 114 MILLION POUNDS 16954 MILLION GEC ALSO WOULD ASSUME ABOUT 140 MILLION POUNDS IN FERRANTI DEBT GEC A MAJOR UK ELECTRONICS AND DEFENSE COMPANY ISN'T RELATED TO THE US COMPANY OF THE SAME NAME GEC HAS SAID IT WON'T BUY THE COMPANY UNLESS IT CAN GET AT LEAST 90 OF THE SHARES AND SOME STOCKHOLDERS HAVE BEEN RELUCTANT TO SELL FERRANTI REITERATED EARLIER STATEMENTS THAT IT WILL GO INTO RECEIVERSHIP IF GEC'S OFFER ISN'T ACCEPTED AND THAT NO SHAREHOLDER WOULD BENEFIT FROM RECEIVERSHIP FERRANTI SAID ITS CURRENT ORDER BOOK ISN'T SUFFICIENT TO SUSTAIN BUSINESS 9311260048 931124 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9311260047 931126 BUSINESS BRIEF INBRAND CORP FIRM EXPECTS 2NDPERIOD NET TO INCREASE TO 12 MILLION INBRAND CORP IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT FISCAL SECONDQUARTER EARNINGS WILL TOTAL ABOUT 12 MILLION OR ABOUT 22 CENTS A SHARE GARNETT SMITH CHIEF EXECUTIVE OFFICER SAID IN THE YEAREARLIER QUARTER THE MARIETTA GA PROVIDER OF DISPOSABLE MEDICAL SUPPLIES REPORTED EARNINGS OF 899000 OR 22 CENTS A SHARE ON SALES OF 134 MILLION EARNINGS FOR THE SECOND QUARTER ENDING JAN 27 WILL COME ON A LARGER NUMBER OF AVERAGE SHARES OUTSTANDING ABOUT 53 MILLION COMPARED WITH FOUR MILLION A YEAR EARLIER WE'RE RIGHT ON TRACK AND I DON'T SEE ANYTHING TO MAKE THAT ESTIMATE NOT OBTAINABLE MR SMITH SAID FOR THE SECOND QUARTER SALES ESTIMATES OF 162 MILLION ARE PROBABLY ON TARGET MR SMITH SAID INBRAND WHICH WENT PUBLIC SEPT 2 AT 14 A SHARE AND IS NOW TRADING AT AROUND 21 WILL PROBABLY SEE A 30 GROWTH IN THE RETAIL SEGMENT OF ITS MARKET IN THE NEXT YEAR MR SMITH SAID 9311260046 931126 CANADA SCHEDULES BOND AUCTION PROCEEDS OF THE ISSUE WILL BE USED TO REDEEM C850 MILLION OF GOVERNMENT BONDS MATURING DEC 15 AND FOR GENERAL GOVERNMENT PURPOSES 9311260045 931126 BUSINESS BRIEF MANNESMANN AG GERMAN COMPANY'S SALES ROSE 1 FOR 9MONTH PERIOD MANNESMANN AG A GERMAN STEEL MACHINERY PLANT CONSTRUCTION AND AUTOMOBILE ENGINEERING COMPANY REPORTED NINEMONTH GROUP SALES WERE UP 1 TO 1936 BILLION MARKS 1138 BILLION FROM 1913 BILLION MARKS A YEAR AGO THE COMPANY ALSO REPORTED THAT ORDER INFLOW FOR THE NINEMONTH PERIOD WAS 21 BILLION MARKS VIRTUALLY UNCHANGED FROM 2097 BILLION FOR THE SAME PERIOD IN 1992 MANNESMANN SAID RESULTS FOR THE FIRST NINE MONTHS OF THE YEAR WERE BELOW LEVELS FOR THE SAME PERIOD LAST YEAR AND WERE CLEARLY NEGATIVE THE COMPANY DIDN'TDISCLOSE SPECIFIC FIGURES A WORLDWIDE SOFTENING OF DEMAND FOR INVESTMENT GOODS AND GREATER PRICE PRESSURES ARE HURTING THE COMPANY'S RESULTS THE COMPANY SAID NOTING EXCHANGERATE FLUCTUATIONS ALSO HAD A NEGATIVE IMPACT DESPITE CONTINUED WEAKNESS IN THE ECONOMY MANNESMANN EXPECTS A CONSIDERABLE IMPROVEMENT IN 1994 RESULTS THE COMPANY SAID ADDING THAT COSTCUTTING MEASURES HAVE BEEN INTRODUCED 9311260044 931126 SHISEIDO'S CHINESE JOINT VENTURE TOKYO SHISEIDO CO A JAPANESE COSMETICS MAKER SAID ITS CHINESE JOINT VENTURE BEGAN OPERATIONS AT A COSMETICS FACTORY IN BEIJING SHISEIDO SAID THE FACTORY RUN BY SHISEIDO LIYUAN COSMETICS CO A JOINT VENTURE WITH BEIJING LIYUAN CO WILL MANUFACTURE THE AUPRES LINE OF COSMETICS AND BEGIN MARKETING IN JANUARY 9311260042 931126 CORRECTIONS & AMPLIFICATIONS THE NEW YORK STOCK EXCHANGE SAID THE TOTAL SHORT INTEREST ON SHARES TRADED ON THE BIG BOARD FOR THE MONTH ENDED NOV 15 WAS 1232220459 SHARES NOT 1235218061 SHARES AS STATED IN AN ARTICLE MONDAY THE BIG BOARD SAID THAT BECAUSE OF AN ERROR IN THE INFORMATION PROVIDED BY ONE OF THE MEMBER FIRMS OF THE BIG BOARD THE SHORT INTEREST POSITION IN MORGAN STANLEY EMERGING MARKETS FUND ON THAT DATE WAS 51014 SHARES NOT 3048616 SHARES THE KONA HILTON IN HAWAII ISN'T THE SUBJECT OF SALE DISCUSSIONS AS INCORRECTLY REPORTED IN LAST FRIDAY'S INDUSTRY FOCUS ARTICLE ON HOTEL ASSET SALES ALSO HILTON INTERNATIONAL IS OWNED BY LADBROKE PLC NOT BASS PLC AS REPORTED 9311260041 931126 PRESIDIO OIL CO NOTE SWAP DENVER PRESIDIO OIL CO SAID IT COMPLETED ITS EXCHANGE OF 25 MILLION OF NEW SENIOR GAS INDEXED NOTES DUE 2002 FOR OLD SENIOR SUBORDINATED GAS INDEXED NOTES DUE 1999 THE OIL AND NATURAL GAS COMPANY ALSO SAID A RELATED OFFER TO SELL AS MUCH AS 18750000 OF NEW 115 SENIOR SECURED NOTES DUE 2000 WAS SUBSTANTIALLY OVERSUBSCRIBED PROCEEDS FROM THE 115 NOTES WILL BE USED TO PREPAY BANK DEBT OUTSTANDING 9311260040 931126 BUSINESS BRIEF WISCONSIN ENERGY CORP WISCONSIN SOUTHERN HOLDERS APPROVE PLAN TO BE ACQUIRED WISCONSIN ENERGY CORP SAID WISCONSIN SOUTHERN GAS CO SHAREHOLDERS APPROVED A PREVIOUSLY ANNOUNCED PLAN CALLING FOR WISCONSIN ENERGY TO ACQUIRE WISCONSIN SOUTHERN GAS WISCONSIN SOUTHERN HOLDERS ARE TO SWAP EACH OF THEIR SHARES FOR 16330 SHARES OF WISCONSIN ENERGY THE RATIO IS SUBJECT TO ADJUSTMENT DEPENDING ON POTENTIAL CHANGES IN THE AVERAGE MARKET PRICE OF WISCONSIN ENERGY SHARES AT THE TIME THE MERGER PLAN WAS ANNOUNCED IN MAY THE STOCK TRANSACTION WAS VALUED AT ABOUT 447 MILLION THE ACQUISITION REMAINS SUBJECT TO REGULATORY APPROVALS AND MILWAUKEEBASED WISCONSIN ENERGY SAID THAT IT HAS TARGETED JAN 1 AS THE CLOSING DATE FOR THE DEAL WISCONSIN SOUTHERN IS BASED IN LAKE GENEVA WIS WISCONSIN ENERGY SHARES GAINED 25 CENTS WEDNESDAY TO 2775 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9311260039 931126 ROADWAY EXPRESS RATE BOOST AKRON OHIO ROADWAY EXPRESS INC SAID IT WILL RAISE FREIGHT RATES BY ABOUT 45 ON JAN 1 IT SAID THE RATE BOOST WAS NECESSITATED BY SHARPLY ESCALATING OPERATING COSTS FOR FUEL HEALTH CARE AND NEW DIRECT TAXES A SUBSIDIARY OF ROADWAY SERVICES INC THE TRUCKING COMPANY IS ONE OF THE US'S LARGEST MOTOR CARRIERS 9311260038 931126 MARKETING BRIEF KNIGHTRIDDER INC MEDIA CONCERN BUYS EQUINET FROM MCINTOSH SECURITIES KNIGHTRIDDER INC HAS BOUGHT AN AUSTRALIAN SHAREMARKET INFORMATION SERVICE EQUINET FROM AUSTRALIAN BROKERAGE CONCERN MCINTOSH SECURITIES LTD FOR 15 MILLION AUSTRALIAN DOLLARS US99 MILLION MCINTOSH MELBOURNE SAID IN A STATEMENT THAT IT SOLD EQUINET BECAUSE DEVOTING THE EXTRA RESOURCES NEEDED FOR EQUINET'S GROWTH WOULD DISTRACT MCINTOSH FROM ITS CORE BUSINESS THE BROKERAGE FIRM SAID THE SALE WILL PROVIDE IT WITH A ONETIME PROFIT OF MORE THAN A12 MILLION EQUINET PROVIDES CLIENTS ACCESS TO LIVE PRICES NEWS AND HISTORIC DATA COVERING THE AUSTRALIAN AND NEW ZEALAND STOCK EXCHANGES FUTURES AND OPTIONS EXCHANGES AND INTERNATIONAL CURRENCY MARKETS A KNIGHTRIDDER SPOKESMAN SAID THE PURCHASE IS THE MIAMI MEDIA COMPANY'S FIRST BIG MOVE INTO THE AUSTRALIAN/SOUTHEAST ASIAN EQUITIES DATA MARKET 9311260037 931126 BUSINESS BRIEF BOMBARDIER INC TENTATIVE SETTLEMENT IS SET IN TUNNELPROJECT DISPUTE BOMBARDIER INC SAID IT REACHED A TENTATIVE SETTLEMENT OF A CONTRACT DISPUTE WITH THE ANGLOFRENCH GROUPS INVOLVED IN THE ENGLISH CHANNEL TUNNEL PROJECT TERMS OF THE PROPOSED SETTLEMENT NEGOTIATED BY THE CHAIRMEN OF BOMBARDIER EUROTUNNEL PLC AND TRANSMANCHE LINK WEREN'T DISCLOSED THE PROPOSAL IS SUBJECT TO APPROVAL BY EACH PARTY'S BOARD IN MEETINGS TO BE HELD BY DEC 3 BOMBARDIER SUPPLYING SHUTTLETRAIN CARS FOR THE TUNNEL HAS CLAIMED 339 BILLION FRENCH FRANCS 5739 MILLION FOR COST OVERRUNS IT SAYS WERE CAUSED BY TRANSMANCHE LINK APART FROM THE OVERRUNS THE VALUE OF BOMBARDIER'S CONTRACT IS ESTIMATED AT 38 BILLION FRANCS TRANSMANCHE LINK IS THE ANGLOFRENCH CONSORTIUM BUILDING THE TUNNEL WHICH EUROTUNNEL WILL OPERATE BOMBARDIER A MONTREAL TRANSPORTATIONEQUIPMENT MAKER IS SUPPLYING THE RAIL CARS THROUGH A CONSORTIUM IT SET UP IN BELGIUM 9311260036 931126 US PHYSICAL THERAPY CLINIC HOUSTON US PHYSICAL THERAPY INC SAID IT PLANS TO OPEN AN OUTPATIENT CLINIC IN MESQUITE THE OPERATOR OF PHYSICAL THERAPY FACILITIES SAID THE CLINIC WILL BEGIN OPERATIONS IN DECEMBER AS USUAL US PHYSICAL THERAPY WILL OPERATE THE MESQUITE CLINIC WITH LOCAL PHYSICAL THERAPISTS AS PARTNERS LAST WEEK THE COMPANY SAID IT WOULD OPEN A CLINIC IN BROWNWOOD THAT FACILITY IS ALSO SET TO OPEN IN DECEMBER WITH THE NEW OPENINGS US PHYSICAL THERAPY WILL HAVE A TOTAL OF 23 CLINICS 9311260035 931126 INTERNATIONAL BRIEF METALLGESELLSCHAFT AG PRETAX LOSS OF 2039 MILLION IS REPORTED FOR FISCAL YEAR GERMAN METAL AND MACHINERY COMPANY METALLGESELLSCHAFT AG FRANKFURT REPORTED THAT IT SWUNG TO A PRETAX LOSS OF 347 MILLION MARKS 2039 MILLION IN THE YEAR ENDED SEPT 30 FROM A PROFIT OF 245 MILLION MARKS A YEAR EARLIER A SPOKESMAN SAID THAT IT LOOKS AS IF THE COMPANY WILL HAVE TO OMIT ITS ANNUAL DIVIDEND THIS YEAR IN THE PRIOR FISCAL YEAR THE COMPANY CUT ITS ANNUAL DIVIDEND TO EIGHT MARKS A SHARE FROM 10 MARKS THE COMPANY SAID IT HAS EMBARKED ON A COSTCUTTING PROGRAM AND HAS IDENTIFIED POTENTIAL SAVINGS OF ABOUT 11 BILLION MARKS OVER A THREEYEAR PERIOD AS PART OF THAT PROGRAM A TOTAL OF ABOUT 7400 JOBS WILL BE CUT THIS YEAR REPRESENTING ABOUT 12 OF THE WORK FORCE THE COMPANY EXPECTS TO SAVE ABOUT 580 MILLION MARKS FROM THE JOB CUTS FOR THE CURRENT FISCAL YEAR CHAIRMAN HEINZ SCHIMMELBUSCH PREDICTED A RETURN TO PROFITABILITY METALLGESELLSCHAFT SAID THE JUSTENDED YEAR WAS CHARACTERIZED BY METAL PRICES CONTINUING TO BE DEPRESSED 9311260034 931126 GENERAL MOTORS SEES GLOBAL ROLE FOR SOME LINES SUBCOMPACT CORSA THRIVES IN A VARIETY OF MARKETS EFFICIENCIES ARE SOUGHT BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL RYE NY GENERAL MOTORS CORP'S EUROPEAN UNIT IS PUSHING A PRODUCT STRATEGY THAT INTEGRATES GM OPERATIONS IN EUROPE LATIN AMERICA AND THE ASIAPACIFIC REGION ACCORDING TO LOUIS R HUGHES EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS THE PROJECT'S SURPRISE FOCAL POINT IS THE REDESIGNED SUBCOMPACT CORSA INTRODUCED EARLIER THIS YEAR BY GM EUROPE THE CORSA IS BUILT IN ZARAGOZA SPAIN AND EISENACH GERMANY A DERIVATIVE THE COMBO DELIVERY VAN IS BUILT IN AZAMBUJA PORTUGAL WHAT GM IS DOING WITH THE CORSA ILLUSTRATES HOW THE WORLD'S NO 1 AUTO MAKER IS TRYING TO GET MORE LEVERAGE OUT OF ITS ACTIVITIES IN DIFFERENT PARTS OF THE WORLD SUCH MEASURES ARE PART OF GM'S EFFORTS TO TURN AROUND ITS MONEYLOSING NORTH AMERICAN AUTO OPERATIONS FOR EXAMPLE GM IS MOVING TO USE IN THE US MARKET SOME VEHICLE PLATFORMS DEVELOPED BY EUROPEAN SUBSIDIARY ADAM OPEL AG ONE IS THE MIDSIZED OPEL OMEGA WHICH GM RECENTLY SAID COULD BECOME THE BASIS FOR SEVERAL DIFFERENT US PRODUCTS MR HUGHES ALSO SAID HE EXPECTS GM EUROPE OF WHICH HE IS PRESIDENT TO BE PROFITABLE THIS YEAR AND NEXT DESPITE THE LONGEST DEEPEST AUTOINDUSTRY RECESSION IN DECADES AS WITH OTHERS IN THE INDUSTRY HE DOESN'T FORESEE A SIGNIFICANT RECOVERY UNTIL 1995 GM EUROPE IS SHEDDING 7000 OF ITS 91600 WORKERS THIS YEAR UP FROM 3000 IN 1992 HE SAID THE TOTALS INCLUDE RETIREMENTS DEPARTURES AND TERMINATIONS IN 1992 GM EUROPE EARNED 136 BILLION ON VEHICLE OPERATIONS DOWN SOMEWHAT FROM THE PROFIT OF NEARLY 2 BILLION A YEAR THAT IT WAS RACKING UP IN EUROPE'S BOOM YEARS MR HUGHES WOULDN'T SAY WHAT THE UNIT EXPECTS TO EARN THIS YEAR AND GM HASN'T BROKEN OUT INTERIM RESULTS HOWEVER SIMPLY STAYING IN THE BLACK IS AN ACCOMPLISHMENT IN A MARKET THAT THROUGH OCTOBER WAS DOWN 15 FROM LAST YEAR ANALYSTS EXPECT MOST OF GM'S EUROPEAN COMPETITORS INCLUDING FORD MOTOR CO'S EUROPEAN UNIT TO FALL INTO THE RED WE BELIEVE WE WILL BE ONE OF THE VERY FEW IF NOT THE ONLY PROFITABLE VOLUME AUTO MANUFACTURER IN EUROPE THIS YEAR MR HUGHES SAID INDUSTRY SOURCES SPECULATE THAT RENAULT MIGHT ALSO STAY IN THE BLACK MR HUGHES FORECAST THAT 1994'S CAR SALES IN EUROPE WILL BE ABOUT THE SAME AS THIS YEAR'S WE'RE NOT COUNTING ON VOLUME TO MAKE MORE MONEY NEXT YEAR BUT ON COSTCUTTING HE SAID WHILE MR HUGHES DECLINED TO SAY HOW MUCH GM EUROPE HAS CUT COSTS THIS YEAR THE REDUCTION OF THE LABOR FORCE ACCOUNTS FOR PART OF THE SAVINGS AND REFLECTS THE CONTINUATION OF A PROCESS THAT GM STARTED WELL BEFORE THE MARKET DROVE OFF A CLIFF THOSE DIVIDENDS ARE PAYING OFF FOR US NOW MR HUGHES SAID INDEED SECURITIES ANALYSTS CALL GM'S OPERATIONS THE MOST EFFICIENT IN EUROPE AND ITS PRODUCTS THE MOST APPEALING TO CONSUMERS IN THE THIRD QUARTER GM REPORTED IT EXPANDED ITS SHARE OF THE EUROPEAN PASSENGERCAR MARKET TO 14 FROM A YEAREARLIER 12 THE NEW CORSA ACCOUNTS FOR A FAIR CHUNK OF THE GAIN THROUGH OCTOBER GM EUROPE SOLD 290000 CORSAS UP 12 FROM A YEAR EARLIER BUT THE NEW MODEL DIDN'T GO ON SALE UNTIL APRIL GM EUROPE SAID DELIVERIES AND ORDERS SINCE APRIL TOTAL 350000 UNITS DEMAND HAS BEEN SO STRONG THAT GM EXPANDED PRODUCTION OF CORSAS AT EISENACH WELL BEYOND INITIAL PLANS GM SAID IT INVESTED ABOUT 15 BILLION MARKS 8816 MILLION IN DEVELOPING THE REDESIGNED CORSA INCLUDING STARTUP COSTS THE MODEL IS ALREADY BEING EXPORTED TO CHILE FROM EUROPE AND SOON WILL BE BUILT AND OFFERED IN AUSTRALIA BRAZIL AND MEXICO THE CORSA HAS TURNED OUT TO BE A VERY FLEXIBLE PLATFORM MR HUGHES SAID THROUGH OUR INTERNATIONAL STRATEGY BOARD WHICH HE HEADS WE ARE FINDING DIFFERENT MARKETS THAT NEED A SMALL CAR THE MODEL WAS INTRODUCED IN THREEDOOR AND FIVEDOOR VERSIONS IN EUROPE GM HAS SINCE ADDED THE VAN AND A SPORTSCOUPE VERSION IS COMING MR HUGHES SAID GM IS ALSO WORKING ON ROADSTER PICKUPTRUCK AND NOTCHBACK VERSIONS THE VEHICLE'S BROAD ADAPTABILITY TO MARKETS IN DIFFERENT PARTS OF THE GLOBE IS A HAPPY ACCIDENT MR HUGHES SAID I WOULD LOVE TO SAY IT WAS A GRAND DESIGN TO DO A WORLD CAR BUT THAT ISN'T THE CASE NONETHELESS HE SAID THE CORSA REPRESENTS AN IMPORTANT DEVELOPMENT IN GM'S EFFORT TO MAKE ITSELF MORE COMPETITIVE THE KEY FOR US WILL BE TO CREATE A GLOBAL PRODUCT PLAN MR HUGHES SAID IF YOU DO THEN OPPORTUNITIES FOR EFFICIENCIES WILL JUMP OUT AT YOU HISTORICALLY AT BOTH GM AND FORD THE COMPANIES' VARIOUS INTERNATIONAL UNITS HAVE OPERATED INDEPENDENTLY OF THEIR SISTER DIVISIONS ENGINEERING AND BUILDING PRODUCTS WITH LITTLE EFFORT TO SHARE TECHNOLOGY OR COMPONENTS MR HUGHES ACKNOWLEDGED THAT NO AUTO MAKER HAS MANAGED TO DEVELOP A UNIFIED GLOBAL PRODUCT PLAN AND THAT THE DANGER OF ATTEMPTING ONE IS A LOSS OF MARKET RESPONSIVENESS ON THE OTHER HAND HE OBSERVED EMISSIONS AND SAFETY STANDARDS WORLDWIDE ARE CONVERGING MAKING INTERNATIONAL ECONOMIES OF SCALE INCREASINGLY POSSIBLE IT'S AN IDEA THAT FORD HAS SEIZED UPON AND IS EXPERIMENTING WITH FOR INSTANCE FORD'S MONDEO SUBCOMPACT WAS DESIGNED IN EUROPE FOR MANUFACTURE AND SALE IN EUROPE AND NORTH AMERICA AS BOTH PRESIDENT OF GM EUROPE AND THE EXECUTIVE IN CHARGE OF INTERNATIONAL OPERATIONS MR HUGHES IS IN A POSITION TO MAKE SUCH INTEGRATION HAPPEN OUR WHOLE EUROPEAN MANAGEMENT TEAM IS TAKING ON AN INTERNATIONAL HAT HE SAID 9311260033 931126 BUSINESS BRIEF TUCSON ELECTRIC POWER CO SIERRITA UNIT TO SETTLE CLAIMS WITH RESOLUTION TRUST CORP TUCSON ELECTRIC POWER CO TUCSON ARIZ SAID ITS SIERRITA RESOURCES INC UNIT AGREED WITH RESOLUTION TRUST CORP TO PAY THE FEDERAL AGENCY 338 MILLION IN A SETTLEMENT OF CLAIMS RELATED TO A PHOENIX LANDDEVELOPMENT PROJECT THE ELECTRIC UTILITY SAID THE SETTLEMENT WAS ANTICIPATED IN PAST EARNINGS CHARGES AND WON'T AFFECT FUTURE FINANCIAL RESULTS THE CLAIM STEMMED FROM A LAWSUIT FILED IN 1989 BY MERABANK AN ARIZONABASED SAVINGS BANK NOW UNDER RESOLUTION TRUST CONTROL THE LAWSUIT ALLEGED THAT 40 MILLION PLUS COSTS AND INTEREST WAS DUE FROM THE TUCSON ELECTRIC UNIT UNDER THE TERMS OF A GUARANTY EXTENDED BY SIERRITA ON A PORTION OF A LOAN RELATED TO THE KINGSWOOD PARKE REAL ESTATE DEVELOPMENT IN PHOENIX TUCSON ELECTRIC'S SETTLEMENT WAS ANNOUNCED AFTER THE CLOSE OF MARKET TUCSON ELECTRIC STOCK CLOSED WEDNESDAY AT 3875 A SHARE UNCHANGED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9311260032 931126 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN STRENGTHENING EUROPEAN COMMUNITY MEMBERS' REGULATION OF RETAILING THE EC'S HIGH COURT RULED THAT A FRENCH LAW BARRING PROMOTIONAL SALES AT A LOSS DOESN'T VIOLATE EC LAWS ON FREE MOVEMENT OF GOODS FRENCH SUPERMARKETS SOUGHT TO OFFER LOSS LEADERS OR ITEMS SOLD AT A LOSS USUALLY AFTER BEING ADVERTISED TO ENTICE CUSTOMERS INTO STORES TO BUY OTHER PRODUCTS THE EC COURT OF JUSTICE ALSO CRITICIZED RETAILERS WHO HAVE USED EC LEGISLATION TO CHALLENGE STRICTLY DOMESTIC ISSUES SUCH AS TRYING TO INVALIDATE NATIONAL RESTRICTIONS ON SUNDAY SHOPPING BANS THE EC COMMISSION HAD ARGUED THAT THE FRENCH BAN ON LOSS LEADERS SHOULDN'T BE APPLIED TO ITEMS PRODUCED OUTSIDE FRANCE THE DECISION AFFIRMS EC GOVERNMENTS' ABILITY TO REGULATE RETAIL TRADE AS LONG AS THE REGULATIONS AREN'T DISCRIMINATORY BRITISH COAL SEEKS TO CLOSE THE WEARMOUTH MINE IN SUNDERLAND THE COUNTRY'S OLDEST COLLIERY AND THE LAST MAJOR ONE OPEN IN NORTHEAST ENGLAND COAL MINING STARTED IN THE REGION IN 1846 AND 304 PITS IN THE DURHAM AREA EMPLOYED AS MANY AS 165000 MINERS IN THE EARLY 1900S UNLESS THE PRIVATE SECTOR RESCUES IT WEARMOUTH WILL CLOSE WITH THE LOSS OF 640 JOBS THE MOVE BRINGS TO 30 THE TOTAL PITS SHUT OR EARMARKED FOR CLOSURE SINCE LAST NOVEMBER WHEN THE GOVERNMENT BEGAN PREPARING BRITISH COAL FOR PRIVATIZATION IN EARLY 1995 BRITISH COAL STILL HAS 22 PITS IN PRODUCTION BUT FURTHER CLOSURES ARE EXPECTED OF THE MEN IN JAPAN THOSE WHO SMOKE DECREASED TO 598 THIS YEAR FROM 604 A YEAR EARLIER MARKING THE FIRST TIME BELOW 60 SINCE JAPAN TOBACCO INC BEGAN ITS ANNUAL SURVEY IN 1965 BUT AMONG WOMEN POLLED SMOKERS INCREASED TO 138 FROM 133 THE COMBINED RATE FOR ADULTS AT LEAST 20 YEARS OLD WAS 361 UNCHANGED FROM 1992'S RECORD LOW PEAK RATES WERE 837 FOR MEN AND 18 FOR WOMEN IN 1966 SOUTH KOREA SEEKING TO PERK UP FOREIGN INVESTMENT WILL SET UP TWO INDUSTRIAL COMPLEXES EXCLUSIVELY FOR FOREIGN COMPANIES THE GOVERNMENT EARMARKED 124 MILLION IN THE 1994 BUDGET FOR THE ZONES IN KWANGJU AND CHUNAN AND MAY SELL OR RENT FACTORY LOTS STARTING LATE NEXT YEAR THE COMPLEXES WILL ACCOMMODATE A TOTAL OF 60 TO 80 CONCERNS TO BE LURED WITH INCENTIVES SUCH AS TAX BREAKS FOREIGN FIRMS ARE INCREASINGLY SHUNNING SOUTH KOREA BECAUSE OF RED TAPE AND HIGH WAGES FOREIGN INVESTMENT LAST YEAR SLUMPED 31 TO 900 MILLION FROM THE 1988 PEAK OF 13 BILLION TAIWAN EASED RESTRICTIONS ON FOREIGN INVESTMENT IN THE EQUITY MARKET UNDER THE NEW RULES SUBJECT TO CABINET APPROVAL A FOREIGN INSTITUTIONAL INVESTOR MAY HOLD 10 UP FROM 5 OF A PUBLICLY TRADED COMPANY THE 10 CEILING ON FOREIGN INSTITUTIONS' COMBINED STAKES IN A COMPANY RISES TO BETWEEN 20 AND 30 THE ECONOMICSTIMULUS MOVES FELL SHORT OF STOCK REGULATORS' SWEEPING PROPOSALS SUCH AS ELIMINATING THE UPPER LIMITS UNDER OTHER RELAXED RULES FOREIGNERS MAY INVEST IN THE FINANCIAL SECTOR INCLUDING STOCKBROKERAGE AND INVESTMENT CONSULTING FIRMS THE PHILIPPINES IS PREPARING AN AMBITIOUS PROGRAM TO SOLVE CHRONIC ENERGY SHORTAGES AND REDUCE DEPENDENCE ON IMPORTED ENERGY MOSTLY OIL TO 30 BY THE YEAR 2000 FROM 68 NOW AT ITS FIRST GLOBAL OIL AND NATURAL GAS CONFERENCE THE GOVERNMENT SAID IT WAS FORMING A POWERSUPPLY POLICY TO ENCOURAGE EXPLORATION OF THE COUNTRY'S RICH NATURAL RESOURCES IT MAY OFFER LIBERALIZED CONTRACTS TO ATTRACT INCREASED INVESTMENT BY FOREIGN OIL COMPANIES MEANWHILE THE GOVERNMENT ELIMINATED DAILY ELECTRICITY OUTAGES ON LUZON THE MAIN PHILIPPINE ISLAND BEATING A SELFIMPOSED CHRISTMAS DEADLINE A GENERAL STRIKE TODAY IN BELGIUM COULD PARALYZE MUCH OF THE RECESSIONSCARRED ECONOMY BELGIUM'S TWO MAIN LABOR UNIONS CALLED THE WALKOUT TO PROTEST A GOVERNMENT AUSTERITY AND JOBBOOSTING PACKAGE THE ACTION FOLLOWS LIMITED YET CRIPPLING STOPPAGES EARLIER THIS WEEK ANOTHER STRIKE MAY COINCIDE WITH A DEC 10 EUROPEAN COMMUNITY SUMMIT IN BRUSSELS THE WALKOUTS THOUGH COSTLY FOR THE BELGIAN ECONOMY AREN'T EXPECTED TO TROUBLE THE GOVERNMENT OR ITS AUSTERITY PLAN APPROVED THIS WEEK BY PARLIAMENT THE MEASURES COMBINE NEW TAXES AND SAVINGS TO CLOSE A 208 BILLION GAP IN THE 1994 SOCIALSECURITY BUDGET THE GOVERNMENT HAS EMERGENCY POWERS TO CARRY OUT MANY OF THE PACKAGE'S PRIMARY MEASURES STILL POPULAR DISCONTENT ABOUT THE GOVERNMENT RUNS DEEP AND UNIONS SAY THE AUSTERITY PACKAGE WOULD INCREASE CORPORATE PROFITS WITHOUT CREATING JOBS THE CONFLICT MIGHT DEEPEN WITH THE UNIONS TAKING A MORE RADICAL STANCE TO PLACATE THE ANGRY RANK AND FILE PARTICULARLY IN BELGIUM'S HUGE PUBLIC SECTOR THAT COULD THREATEN THE FRAGILE COALITION GOVERNMENT GERMANY WANTS A EUROPEAN COMMUNITY LAW REQUIRING NEW CARS TO HAVE ELECTRONIC ANTITHEFT DEVICES AUTO THEFTS ROSE 30 IN GERMANY LAST YEAR AND THE GOVERNMENT SUGGESTED MANY OF THE STOLEN VEHICLES WERE SPIRITED ACROSS MOREOPEN FRONTIERS INTO THE FORMER EAST BLOC PILOTS AND STEWARDS AT THE FRENCH DOMESTIC CARRIER AIR INTER STAGED A ONEDAY STRIKE THAT GROUNDED DOZENS OF FLIGHTS THE WORKERS WERE PROTESTING THE GOVERNMENT'S PLAN TO OPEN THE AIRLINE A UNIT OF STATEOWNED AIR FRANCE TO FOREIGN COMPETITION 9311260031 931126 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE IF STRESS IS TAKING ITS TOLL ON YOU TAKE COMFORT IN KNOWING THAT YOU'RE NOT ALONE ABOUT 40 MILLION AMERICAN ADULTS REPORTED BEING DEPRESSED BORED LONELY RESTLESS OR UPSET IN THE TWO WEEKS PRECEDING A 1991 SURVEY BY THE NATIONAL CENTER FOR HEALTH STATISTICS OVERALL 23 OF WOMEN AND 20 OF MEN EXPERIENCED AT LEAST ONE OF THESE NEGATIVE FEELINGS MEN WERE SLIGHTLY MORE LIKELY THAN WOMEN TO SAY THEY HAD BEEN RESTLESS AND WOMEN WERE MORE LIKELY THAN MEN TO REPORT THE OTHER FOUR NEGATIVE FEELINGS DEPRESSION AND BOREDOM WERE EQUALLY PREVALENT AMONG WOMEN EACH MENTIONED BY 11 OF FEMALE RESPONDENTS ABOUT 10 OF WOMEN HAD BEEN RESTLESS 6 WERE LONELY AND 5 HAD GOTTEN UPSET AMONG MEN 11 WERE RESTLESS FOLLOWED BY 9 WHO WERE BORED 7 WHO WERE DEPRESSED AND 3 WHO FELT LONELY OR UPSET SOMETIMES PEOPLE FEEL BAD IN SEVERAL WAYS AT ONCE ABOUT 5 OF WOMEN AND 4 OF MEN EXPERIENCED AT LEAST THREE OF THE FIVE NEGATIVE MOODS IN THE TWOWEEK PERIOD THE SURVEY ALSO COLLECTED INFORMATION ABOUT PEOPLE'S DRINKING AND SMOKING BEHAVIOR IT FOUND A CLEAR CORRELATION BETWEEN THESE HABITS AND BAD FEELINGS AMONG MEN FOR EXAMPLE NEARLY 5 OF MEN WHO DIDN'T REPORT ANY BAD FEELINGS HAD AT LEAST THREE DRINKS A DAY FOR THOSE WHO WERE OFTEN LONELY RESTLESS OR BORED HOWEVER THE SHARE OF HEAVY DRINKERS WAS CLOSER TO 10 AMONG WOMEN THOSE WHO OFTEN FELT VERY BAD WERE MORE THAN TWICE AS LIKELY TO SMOKE AS THOSE WHO DIDN'T FEEL BAD BUT NOT MUCH MORE LIKELY TO DRINK HEAVILY EDUCATION LATER IN LIFE IS MORE COMMON THAN PEOPLE THINK AMONG WOMEN AGED 42 TO 57 IN 1979 41 RECEIVED SOME FORMAL EDUCATION OR TRAINING DURING THE NEXT 10 YEARS THE WOMEN WERE MOST LIKELY TO PARTICIPATE IN COMPANY TRAINING ACCORDING TO A BUREAU OF LABOR STATISTICS ANALYSIS OF DATA FROM THE NATIONAL LONGITUDINAL SURVEY A LONGTERM STUDY OF THE LABOR FORCE CONDUCTED BY THE CENSUS BUREAU AND MANAGED BY THE CENTER FOR HUMAN RESOURCE RESEARCH OF OHIO STATE UNIVERSITY ABOUT 24 OF THE WOMEN GOT COMPANY TRAINING BETWEEN 1979 AND 1989 15 WENT TO FOURYEAR COLLEGES 11 WENT TO HIGH SCHOOLS NIGHT SCHOOLS OR COMMUNITY COLLEGES 6 ATTENDED A PROPRIETARY INSTITUTION VOCATIONAL AND BUSINESS SCHOOLS NURSING SCHOOLS AND CORRESPONDENCE COURSES AND 9 GOT SOME OTHER TRAINING SOME GOT MORE THAN ONE TYPE OF TRAINING DURING THE PERIOD JOBS AND TRAINING GO TOGETHER ONLY 11 OF WOMEN WHO DID NOT WORK IN THE PAID LABOR FORCE BETWEEN 1979 AND 1989 GOT TRAINING OR EDUCATION DURING THE DECADE COMPARED WITH 57 OF THOSE WHO WORKED AN AVERAGE OF 40 WEEKS A YEAR EDUCATION PRIOR TO 1979 ALSO PLAYED A STRONG ROLE AMONG WOMEN WHO WERE HIGHSCHOOL DROPOUTS AT THE BEGINNING OF THE SURVEY PERIOD 18 GOT FURTHER EDUCATION IN THE NEXT TEN YEARS COMPARED WITH 78 OF COLLEGE GRADUATES MARITAL STATUS HAS LITTLE EFFECT ON EDUCATIONAL STATUS AMONG WOMEN WHO WERE MARRIED IN BOTH 1979 AND 1989 40 RECEIVED FORMAL EDUCATION OR TRAINING COMPARED WITH 46 OF THOSE WHO STARTED OUT SINGLE AND ENDED UP MARRIED AND 45 OF THOSE WHO WERE SINGLE IN BOTH YEARS THE ONLY GROUP OF WOMEN LESS LIKELY THAN AVERAGE TO GO TO SCHOOL WERE THOSE WHO WERE MARRIED IN 1979 AND SINGLE IN 1989 MANY OF THESE WOMEN MAY HAVE BEEN OLDER MEMBERS OF THE SAMPLE WHO WERE WIDOWED DURING THE DECADE MOST MINORITY FAMILIES AREN'T AFFLUENT BUT THEY SHARE ONE THING WITH HIGHERINCOME FAMILIES THEIR KIDS STILL DEPEND ON THEM PAST THE AGE OF 18 ABOUT 16 OF ALL US FAMILIES HAVE DEPENDENT 18TO24YEAROLDS DEFINED AS UNMARRIED CHILDREN AND OTHER RELATIVES WHO EITHER LIVE AT HOME OR ATTEND COLLEGE AWAY FROM HOME ACCORDING TO AN OCTOBER 1992 CENSUS BUREAU SURVEY THE SHARE IS LOWER THAN AVERAGE FOR LOWINCOME FAMILIES AND RISES STEADILY WITH INCOME ABOUT 13 OF FAMILIES WITH ANNUAL INCOMES BELOW 15000 HAVE A DEPENDENT YOUNG ADULT COMPARED WITH 21 OF FAMILIES WITH INCOMES OF 50000 OR MORE WHEN IT COMES TO MINORITY FAMILIES 22 OF BLACK FAMILIES AND 23 OF HISPANIC FAMILIES HAVE DEPENDENT YOUNG ADULTS COMPARED WITH 15 OF WHITE FAMILIES THIS TREND HOLDS FOR ALL INCOME LEVELS SO MINORITIES WITH HIGH INCOMES ARE MOST LIKELY TO HAVE DEPENDENT YOUNG ADULTS ABOUT 31 OF AFFLUENT HISPANIC FAMILIES AND 26 OF AFFLUENT BLACK FAMILIES HAVE AT LEAST ONE DEPENDENT 18TO24YEAROLD COMPARED WITH 21 OF AFFLUENT WHITE FAMILIES AMONG FAMILIES WITH DEPENDENT YOUNG ADULTS 20 HAVE TWO OR MORE THE SHARE OF FAMILIES WITH MORE THAN ONE DEPENDENT ADULT CHILD DOES NOT VARY BY RACE OR ETHNICITY BUT IT RISES WITH INCOME ABOUT 25 OF AFFLUENT FAMILIES WITH ANY DEPENDENTS HAVE AT LEAST TWO COMPARED WITH 16 OF THE LOWESTINCOME FAMILIES OF THE SIX IN 10 ADULTS WHO EXPRESS INTEREST IN THE POTENTIAL OF INTERACTIVE TELEVISION 86 SAY THEY WOULD DEFINITELY OR PROBABLY USE VIDEOONDEMAND A SERVICE WHEREBY CABLETV SUBSCRIBERS COULD WATCH MOVIES ANYTIME THEY WANT A SURVEY FROM CHILTON RESEARCH SERVICES OF RADNOR PA ALSO FINDS THAT 68 WOULD BE INTERESTED IN EDUCATIONAL DOITYOURSELF PROGRAMS AND 57 WOULD MAKE USE OF A VIDEO LIBRARY OF CHILDREN'S PROGRAMS LOWER PRICES ARE EFFECTIVE IN GETTING PEOPLE TO SWITCH BRANDS OF AT LEAST ONE FREQUENTLY PURCHASED PRODUCT DISPOSABLE DIAPERS AN ANALYSIS OF AC NIELSEN DATA BY FUSUN GONUL AND KANNAN SRINIVASAN MARKETING PROFESSORS AT CARNEGIE MELLON UNIVERSITY IN PITTSBURGH FINDS THAT A 10 DROP IN PRICE GENERATES A 19 OR GREATER INCREASE IN THE PROBABILITY OF SWITCHING TO THAT BRAND THE RESEARCH ALSO SHOWED THAT COUPON PROMOTIONS HAVE A GREATER EFFECT THAN MERE PRICE REDUCTIONS 9311260030 931126 WHAT'S NEWS BUSINESS AND FINANCE PARAMOUNT ACTED IMPROPERLY IN REJECTING A 105 BILLION BID BY QVC A DELAWARE COURT JUDGE DECIDED BLOCKING THE PROPOSED 95 BILLION FRIENDLY TAKEOVER BY VIACOM UNLESS OVERRULED BY THE DELAWARE SUPREME COURT THE JUDGE'S DECISION PUTS QVC ON AN EQUAL FOOTING WITH VIACOM IN BIDDING FOR PARAMOUNT VIACOM WOULD THEN HAVE TO RAISE ITS BID IN ORDER TO COMPETE WITH QVC'S OFFER PHILIP MORRIS PLANS TO ELIMINATE 14000 JOBS OR 8 OF ITS GLOBAL 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 COSTCUTTING PROGRAM AND AN ACCOUNTING CHANGE WILL REDUCE PHILIP MORRIS'S PROFIT BY NEARLY 1 BILLION THIS YEAR OPEC MEMBERS DECIDED NOT TO CUT THEIR OIL PRODUCTION A MOVE THAT THREATENS TO SEND PRICES TUMBLING THE SHIFT IN POLICY HAS WIDERANGING IMPLICATIONS FOR THE WORLD OIL INDUSTRY AND FOR REGIONS THAT PRODUCE PETROLEUM UAL AGREED TO RESUME NEGOTIATIONS WITH THE TWO UNIONS SEEKING TO ACQUIRE MAJORITY CONTROL OF UNITED AIRLINES IN A SURPRISE ABOUTFACE UAL'S DECISION SIGNALED THAT THE PILOTS' AND MACHINISTS' UNIONS HAVE GAINED THE UPPER HAND IN THE DISCUSSIONS OVER THE SHAPE OF UNITED AIRLINES MAJOR US AIRLINES ASKED THE WHITE HOUSE TO TAKE THEIR SIDE IN A LANDINGFEE DISPUTE WITH LOS ANGELES DAYS AFTER BEING STUNG BY CLINTON'S INTERVENTION IN AMERICAN AIR'S STRIKE BUT ADMINISTRATION OFFICIALS SAID THEY WILL CONTINUE TO TRY TO BROKER A COMPROMISE BETWEEN THE CITY AND AIRLINES VOLKSWAGEN AND LABOR REPRESENTATIVES AGREED ON A PLAN THAT WILL INTRODUCE A FOURDAY WORKWEEK AT EUROPE'S LARGEST CAR MAKER IN AN EFFORT TO PREVENT OR AT LEAST DELAY HUGE LAYOFFS DURABLEGOODS ORDERS ROSE 2 LAST MONTH THE THIRD CONSECUTIVE MONTHLY GAIN PUSHING ORDERS TO A RECORD LEVEL THE IMPROVEMENT REFLECTS SLOW BUT STEADY GROWTH IN MANUFACTURING SALES OF NORTH AMERICANBUILT CARS AND TRUCKS IN MIDNOVEMBER ROSE 205 AS A RECOVERY IN THE US CAR INDUSTRY REMAINED ROBUST AMID LOW INTEREST RATES AND A STRONGER ECONOMY A TOP NCR EXECUTIVE RESIGNED FROM THE AT&T UNIT AMID SEXUALHARASSMENT CHARGES BY A FORMER EMPLOYEE SEPARATELY THE COMPUTER FIRM EXPANDED EFFORTS TO CUT ITS WORK FORCE MEXICO'S PRESIDENT SENT A FOREIGN INVESTMENT BILL TO THE MEXICAN CONGRESS TO FURTHER FREEMARKET REFORMS AND STIMULATE THE ECONOMY SOLIDIFYING HIS VICTORY ON NAFTA IN MEXICO CITY STOCK PRICES RALLIED 31 TO A RECORD ON NEWS OF THE PROPOSALS FORMER CENTRUST BANK CEO DAVID PAUL WAS CONVICTED OF 66 COUNTS OF FRAUD INVOLVING THE FLORIDA THRIFT JAPAN'S BIGGEST COMMERCIAL BANKS POSTED GENERALLY LOWER EARNINGS FOR THE SIX MONTHS ENDED SEPT 30 SHORT INTEREST ON THE NASDAQ MARKET SET A RECORD FOR THE 10TH CONSECUTIVE MONTH EDGING UP LESS THAN 1 FROM MIDOCTOBER'S LEVEL SEVERAL TELECOMMUNICATIONS AND TECHNOLOGY COMPANIES WERE AMONG THOSE WITH THE LARGEST SHORT POSITIONS CANADIAN AIRLINES WON A MAJOR VICTORY IN ITS BID TO TIE UP WITH AMR THE PARENT OF AMERICAN AIRLINES BONDS LEHMAN BROTHERS TREASURY INDEX 548451 UP 657 COMMODITIES OIL 1638 A BARREL OFF 25 CENTS DOW JONES FUTURES INDEX 13627 UP 075 SPOT INDEX 12331 UP 023 DOLLAR 10818 YEN OFF 049 17023 MARKS UP 00003 9311260029 931126 FINANCING BUSINESS NATIONAL RV HOLDINGS INC NATIONAL RV HOLDINGS INC PERRIS CALIF SAID IT RECEIVED COMMITMENTS FOR THE PRIVATE PLACEMENT OF ABOUT 105 MILLION OF STOCK UNITS INDICATING ABOUT A 45 INCREASE IN THE COMPANY'S STOCK OUTSTANDING THE MAKER OF MOTOR HOMES SAID THE PLACEMENT IS BEING ARRANGED WITH INSTITUTIONAL INVESTORS THROUGH ARNHOLD & S BLEICHROEDER INC WHICH ALSO HAS BEEN RETAINED AS FINANCIAL ADVISER NATIONAL RV SAID THE PRIVATE PLACEMENT CONSISTS OF UNITS PRICED AT 2850 EACH CONSISTING OF THREE COMMON SHARES AND ONE WARRANT EXERCISABLE AT 1150 A COMMON SHARE INDICATING THE PROSPECTIVE ISSUE OF ABOUT 368000 UNITS OR ABOUT 11 MILLION SHARES THE COMPANY CURRENTLY HAS ABOUT 24 MILLION SHARES OUTSTANDING ON A FULLY DILUTED BASIS PROCEEDS WILL BE USED FOR WORKING CAPITAL AND FOR ACQUISITIONS THE COMPANY SAID A SPOKESMAN SAID THE TRANSACTION IS EXPECTED TO BE COMPLETED NEXT WEEK 9311260028 931126 BUSINESS BRIEF AERO SYSTEMS INC JUDGE DISMISSES ALL CHARGES STEMMING FROM A 1983 SUIT AERO SYSTEMS INC MIAMI SAID A FEDERAL JUDGE IN CALIFORNIA DISMISSED ALL CHARGES BROUGHT AGAINST THE COMPANY AND ITS PRESIDENT STEMMING FROM A 1983 LAWSUIT ALLEGING STOCK MANIPULATION THE SUIT ORIGINALLY FILED IN LOS ANGELES AGAINST 12 COMPANIES INCLUDING AERO SYSTEMS WAS INITIATED BY SECURITIES INVESTOR PROTECTION CORP WHICH INSURES CUSTOMER ACCOUNTS OF ITS MEMBER BROKERAGE FIRMS THE COMPLAINT ALLEGED AMONG OTHER CHARGES MANIPULATION OF CERTAIN OVERTHECOUNTER SECURITIES AND VIOLATIONS OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT SECURITIES INVESTOR COULDN'T BE REACHED FOR COMMENT AFTER A SERIES OF VERDICTS APPEALS AND ASSORTED MOTIONS IN THE PAST DECADE THE FEDERAL JUDGE LAST WEEK DISMISSED ALL CLAIMS AGAINST AERO SYSTEMS WHICH SELLS AND SERVICES AVIATION EQUIPMENT AND ITS PRESIDENT ROBERT G HOLMES JR 9311260027 931126 LEGAL BEAT QUIRKY SLANDER ACTIONS THREATEN EMPLOYERS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL A FIRED EMPLOYEE MAY BE SLANDERED BY HER FORMER COMPANY IF SHE TELLS PROSPECTIVE EMPLOYERS THE REASON SHE LEFT HER JOB SOME COURTS HAVE CONCLUDED THE QUIRKY LEGAL DOCTRINE CALLED COMPELLED SELFPUBLICATION IS STILL VIEWED WITH SUSPICION BY MOST JUDGES BUT COURTS IN CALIFORNIA TEXAS MINNESOTA PARTS OF NEW YORK AND ELSEWHERE NOW ACCEPT IT IN SOME FORM SELFPUBLICATION CLAIMS FOLLOW THE DICTATES OF DEFAMATION LAW BUT WITH A TWIST IN ANY DEFAMATION SUIT SOMEONE HAS TO PUBLICIZE OR PUBLISH THE DEFAMATORY REMARKS IN ORDER TO TRIGGER A LAWSUIT IN SELFPUBLICATION CASES FIRED EMPLOYEES CLAIM THAT THEY HAVE NO CHOICE BUT TO TELL WOULDBE EMPLOYERS THE OFFICIAL REASONS THEY WERE TERMINATED THUS THEY SAY THEY ARE BEING COMPELLED IN EFFECT TO PUBLISH THE PREVIOUS EMPLOYER'S DEFAMATORY STATEMENTS THE PLAINTIFFS CLAIM THAT THIS ENTITLES THEM TO SUE THE PREVIOUS EMPLOYER FOR SLANDER IF A JURY FINDS THAT THE EMPLOYEE DID IN FACT DO WHAT THE COMPANY CLAIMED THE EMPLOYEE WILL LOSE THE SUIT BECAUSE TRUTH IS A COMPLETE DEFENSE TO A DEFAMATION CLAIM BUT IF A JURY BELIEVES THE COMPANY WAS WRONG ABOUT THE EMPLOYEE'S PERFORMANCE THE PLAINTIFF MAY BE IN A POSITION TO COLLECT A BIG AWARD IN ONE OF THE BROADEST AND EARLIEST CASES INVOLVING COMPELLED SELFPUBLICATION SEVERAL CLAIMS PROCESSORS FOR THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE US NEW YORK WERE FIRED FOR GROSS INSUBORDINATION THE COMPANY HAD CHALLENGED THEIR EXPENSE ACCOUNTS AFTER A BUSINESS TRIP BUT THE EMPLOYEES HAD CLAIMED THEY WERE ACCURATE AND HAD REFUSED TO CHANGE THEM WHEN THEY SOUGHT NEW JOBS THEY HAD TO REPEAT THE COMPANY'S ALLEGATION TO WOULDBE EMPLOYERS IN 1986 THE MINNESOTA SUPREME COURT UPHELD A JURY AWARD IN THEIR FAVOR OF ROUGHLY 450000 THE SLANDER CLAIMS ARE PART OF A TREND IN WHICH PLAINTIFFS ATTACH SOME SORT OF DEFAMATION ALLEGATION TO WRONGFULFIRING LAWSUITS PLAINTIFFS OFTEN ALLEGE FOR INSTANCE THAT THEY WERE SLANDERED WHEN A PROSPECTIVE EMPLOYER CALLED TO CHECK A REFERENCE AND WAS TOLD THAT THE INDIVIDUAL HAD BEEN FIRED FOR INCOMPETENCE OR WRONGDOING RONALD M GREEN A PARTNER IN THE NEW YORK LABOR LAW FIRM OF EPSTEIN BECKER & GREEN WHICH REPRESENTS MANAGEMENT SAID SOME FORM OF DEFAMATION CLAIM NOW APPEARS IN AS MANY AS ONE OF FIVE WRONGFULDISMISSAL CASES A FEW YEARS AGO THIS WAS VIRTUALLY UNHEARD OF HE ADDED THIS IS A CLAIM OF THE '90S HE SAID IT'S A CLAIM OF PROFESSIONAL PEOPLE WHO EARNED A LOT OF MONEY AND ARE HAVING TROUBLE FINDING NEW JOBS HE SAID IT'S ESPECIALLY PREVALENT IN THE SECURITIES INDUSTRY WHERE FIRMS ARE REQUIRED TO FILL OUT TERMINATION FORMS EXPLAINING SPECIFICALLY WHY BROKERS AND SALESPEOPLE LEFT THEIR JOBS EMPLOYERS ARE GETTING MORE INQUISITIVE SAID JOSEPH POSNER AN ENCINO CALIF ATTORNEY WHO SAYS HE FILED ABOUT FIVE SELFPUBLICATION LAWSUITS THIS YEAR IN THE PAST HE SAID WORKERS COULD MORE OFTEN GLOSS OVER UNPLEASANT FIRINGS BY CITING DIFFERENCES OF OPINION PEOPLE ARE HAVING TO BE MORE OPEN MR POSNER SAID LAWSUITS TEND TO ARISE WHEN THE PROFFERED REASONS FOR DISMISSAL ARE GRAVELY DAMAGING SECURITIESLAW VIOLATIONS SEXUAL HARASSMENT ASSAULT THEFT DRUG ABUSE LAWSUITS ALSO CROP UP MORE OFTEN IN SOME STATES THAT REQUIRE EMPLOYERS TO GIVE WORKERS UPON REQUEST A WRITTEN REASON FOR THEIR TERMINATION COURTS THAT ALLOW THE CLAIM SAY IT'S A LOGICAL EXTENSION OF DEFAMATION LAW BECAUSE FORCING PEOPLE TO SLANDER THEMSELVES IS AS DAMAGING AS SLANDERING THEM DIRECTLY AND WHEN THEY GIVE A WORKER THE REASON FOR A DISMISSAL EMPLOYERS SHOULD BE ABLE TO FORESEE THAT THE FIRED INDIVIDUAL WILL HAVE TO REVEAL IT IN A FUTURE JOB INTERVIEW THESE COURTS SAY THE CIRCUMSTANCES IN SUCH CASES TEND TO AROUSE JURORS' SYMPATHY LAWYERS SAY IN ONE LAWSUIT OF MR POSNER'S FOR INSTANCE AN INSURANCEBROKERAGE EMPLOYEE WAS WRONGLY ACCUSED OF FALSIFYING TIME CARDS ALTHOUGH SHE SUED THE FIRM THE CASE TOOK SIX YEARS TO GO TO TRIAL SIX YEARS LATER SHE WAS STILL HAVING TO EXPLAIN TO PEOPLE IN HER BUSINESS WHY SHE WAS FIRED FROM HER COMPANY HE SAID A JURY DELIBERATED ONLY TWO HOURS IN 1989 BEFORE AWARDING HER SEVERAL HUNDRED THOUSAND DOLLARS ALTHOUGH THE NUMBER OF SUCH CLAIMS IS RISING MANY COURTS EITHER HAVE REJECTED THE DOCTRINE OR HAVEN'T DEALT WITH IT YET THE COURTS THAT SPURN IT SAY THE THEORY WOULD ALLOW DEFAMATION SUITS IN INNUMERABLE SITUATIONS EVERY INSTANCE OF DISCHARGE STATED TO BE FOR CAUSE' WOULD BE A LIBEL ACTION A FEDERAL DISTRICT JUDGE IN NEW YORK SAID REJECTING A CLAIM BY A HUMANRELATIONS EXECUTIVE WHO WAS FIRED FOR JUST CAUSE COURTS THAT ACCEPT THE DOCTRINE TEND TO APPLY IT IN A LIMITED FORM FOR INSTANCE EMPLOYEES OFTEN HAVE TO SHOW THAT THE COMPANY RECKLESSLY DISREGARDED THE TRUTH WHEN FIRING THE WORKER LAST YEAR A FEDERAL DISTRICT COURT IN DALLAS REJECTED A DEFAMATION CLAIM AGAINST INTEX AVIATION SERVICES INC AN AIRCRAFTCLEANING BUSINESS BECAUSE THE COMPANY BELIEVED IN GOOD FAITH THAT THE FIRED WORKER HARASSED OTHERS THE COMPANY MADE A REASONABLE EFFORT TO CHECK WHETHER THE ALLEGATIONS WERE TRUE THE COURT SAID JUDGES ALSO ARE HOLDING FIRED WORKERS TO A HIGH STANDARD FOR WHAT COUNTS AS COMPELLED PUBLICATION COURTS REGULARLY DISMISS CASES IN WHICH EMPLOYEES CAN'T PROVE THEY WERE FORCED TO TELL PROSPECTIVE EMPLOYERS WHY THEY WERE FIRED A FEDERAL COURT IN NEW YORK REJECTED A CLAIM BY AN EMPLOYEE WHO WAS FIRED FOR WOEFULLY DEFICIENT WORK HIS EMPLOYER CATALOG RETAILER J CREW GROUP INC GARFIELD NJ HAD VOLUNTEERED TO MINIMIZE HIS EMBARRASSMENT BY TELLING OUTSIDERS HE WAS FIRED BECAUSE OF A CHANGE IN CORPORATE DIRECTION THE MAN CANNOT HAVE BEEN COMPELLED WHEN WITHOUT BEING DISHONEST HE COULD HAVE SIMPLY REPEATED THE REASON PROPOSED BY HIS FORMER EMPLOYER THE COURT SAID IN ITS 1990 OPINION THEY'RE STILL VERY DIFFICULT CLAIMS SAID ELLEN SIMON SACKS A CLEVELAND ATTORNEY WHO HEADS THE EMPLOYMENTRIGHTS SECTION OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA THERE ARE A LOT OF LEGAL HURDLES TO GET OVER LAWYERS WHO DO MUNICIPALBOND WORK ARE STARTING TO RESPOND TO CALLS THAT THEY RENOUNCE POLITICAL CONTRIBUTIONS NEIL ARKUSS A BOSTON BOND COUNSEL AND PRESIDENT OF THE NATIONAL ASSOCIATION OF BOND LAWYERS HAS APPOINTED A 12LAWYER COMMITTEE TO STUDY WHETHER THE GROUP SHOULD FOLLOW THE LEAD OF SECURITIES FIRMS THAT HAVE TO STOP MAKING CONTRIBUTIONS THAT APPEAR TO INFLUENCE THEIR SELECTION AS BOND UNDERWRITERS IN A LETTER TO SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT WHO ENDORSED THE SECURITIES FIRMS' VOLUNTARY PACT LAST MONTH MR ARKUSS WROTE THAT THE ISSUE WOULD BE GIVEN THE HIGHEST PRIORITY HE PREDICTS THE COMMITTEE COULD ISSUE RECOMMENDATIONS AS EARLY AS NEXT MONTH AND IN SAN FRANCISCO PUBLICFINANCE PARTNERS AT A FIRM WITH A BIG BOOK OF BOND BUSINESS AND A LONG HISTORY OF POLITICAL GIVING ORRICK HERRINGTON & SUTCLIFFE SPENT AN HOUR IN A RECENT DEPARTMENT MEETING IN HEATED DISCUSSION OF THE ISSUE DISCUSSION WAS ON ALL SIDES OF THE TOPIC SAYS DEPARTMENT CHAIRMAN ROGER L DAVIS BUT HE ADDS THAT THE FIRM HASN'T MADE ANY DECISION ON WHETHER TO CHANGE ITS PRACTICES AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9311260026 931126 INTERNATIONAL VOLVORENAULT MERGER PLAN GETS BOOST AS TWO BIG INVESTORS INDICATE SUPPORT BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB VOLVO'S SEESAW BATTLE WITH SKEPTICAL SHAREHOLDERS OVER A PROPOSED MERGER WITH RENAULT SA OF FRANCE TOOK A SURPRISE TURN AS TWO INSTITUTIONAL INVESTORS WITH A COMBINED 11 VOTING STAKE SAID THEY'LL SUPPORT THE MERGER PROPOSAL AT AN EXTRAORDINARY GENERAL MEETING NEXT MONTH THROWING SUPPORT BEHIND EMBATTLED VOLVO MANAGEMENT WERE SWEDEN'S FOURTH NATIONAL PENSION INSURANCE FUND WHICH HOLDS A 75 VOTING STAKE AND FOLKSAM SAK OCH LIV A BIG STOCKHOLM MUTUAL INSURER THAT OWNS A 36 STAKE THE DECISION BY THE FOURTH PENSION FUND VOLVO'S SECONDBIGGEST OWNER AFTER RENAULT IS PARTICULARLY IMPORTANT AND LIKELY TO EXERT A MAJOR INFLUENCE ON SIMILAR DECISIONS BY OTHER BIG SWEDISH INVESTORS ANALYSTS HERE SAID THE FOURTH FUND IS IMPORTANT NOT ONLY BECAUSE OF ITS SIZE BUT ALSO BECAUSE ITS BOARD INCLUDES REPRESENTATIVES FROM MANY INTEREST GROUPS SUCH AS UNIONS AND LOCAL GOVERNMENTS THAT ALSO HOLD SEATS IN SEVERAL OTHER INVESTMENT FUNDS BOTH THE FOURTH FUND AND FOLKSAM CITED CONCESSIONS FROM THE FRENCH GOVERNMENT EARLIER THIS WEEK AS CRUCIAL TO THEIR DECISION TO BACK THE MERGER PLAN THOSE CONCESSIONS REGARDING POWERS THE FRENCH GOVERNMENT WOULD RETAIN THROUGH A GOLDEN SHARE IN THE FUTURE COMPANY RENAULTVOLVO RVA AND A FIRMER COMMITMENT ON TIMING OF RENAULT'S PRIVATIZATION WERE SEEN AS A BREAKTHROUGH WHEN UNVEILED HERE ON MONDAY BUT THE EUPHORIA EVAPORATED ON WEDNESDAY AS SWEDEN'S FIFTH NATIONAL PENSION INSURANCE FUND WHICH HOLDS A 13 VOLVO VOTING STAKE INDICATED IT WOULD VOTE AGAINST THE MERGER PLAN THAT DECISION WAS SEEN AS A BAD OMEN FOR THURSDAY'S SHOWDOWN VOTE BY THE FOURTH FUND BECAUSE THE MAKEUP OF BOTH FUNDS' BOARDS ARE SIMILAR IN FACT THE FOURTH FUND'S DECISION WAS A CLOSE CALL WITH MERGER ADVOCATES WINNING 86 PEOPLE FAMILIAR WITH THE SITUATION SAID VOLVO EXECUTIVES WERE PARTICULARLY ENCOURAGED THAT REPRESENTATIVES FROM BOTH THE FOURTH FUND AND FOLKSAM ATTENDED A MEETING WITH RENAULT MANAGEMENT AND FRENCH POLITICAL LEADERS IN PARIS ON WEDNESDAY IT TOOK COURAGE TO BE THE FIRST ONES TO VOTE IN FAVOR OF THE MERGER RIGHT NOW THIS SHOULD BREAK THE ICE A VOLVO OFFICIAL SAID HE SUGGESTED THE PARIS TRIP MIGHT PROVE TO BE THE TURNING POINT IN DISPELLING OPPOSITION TO THE PLANNED MERGER OF VOLVO'S CAR AND TRUCK DIVISIONS WITH RENAULT A MARRIAGE THAT WOULD CREATE THE WORLD'S SIXTHBIGGEST AUTO GROUP ALONG WITH THE ROUGHLY 20 OF VOLVO'S VOTING STOCK THAT IS CONTROLLED BY RENAULT AND OTHER AFFILIATES SUPPORT FROM THE FOURTH PENSION FUND AND FOLKSAM PUSHES THE PROMERGER VOTE TO ABOUT 31 THE MERGER REQUIRES APPROVAL FROM SHAREHOLDERS REPRESENTING MORE THAN 50 OF VOTING SHARES AT THE EXTRAORDINARY GENERAL MEETING DECEMBER 7 MANY BIG VOLVO SHAREHOLDERS ARE EXPECTED TO STAKE THEIR FINAL POSITIONS NEXT WEEK WHILE THE FOURTH PENSION FUND'S DECISION ON THE MERGER WAS BULLISH NEWS FOR VOLVO ITS DIRECTORS ALSO UNLEASHED A CLEAR CHALLENGE AIMED AT THE AUTOMAKER'S POWERFUL CHAIRMAN PEHR GYLLENHAMMAR MR GYLLENHAMMAR AND OTHER VOLVO DIRECTORS HAVE COME UNDER INTENSE CRITICISM FOR TACTICAL BLUNDERS IN PROMOTING THE MERGER PLAN TO SHAREHOLDERS IN RECENT WEEKS FACING ALMOSTCERTAIN DEFEAT ON THE MERGER PLAN A FEW WEEKS AGO THE BOARD WAS FORCED TO ORDER A HUMILIATING MONTHLONG POSTPONEMENT OF THE SHAREHOLDERS VOTE UNDERSCORING EARLIER CRITICISM OF MR GYLLENHAMMAR THE FOURTH FUND BOARD UNANIMOUSLY INSTRUCTED ITS PRESIDENT THOMAS HALVORSEN TO PUSH FOR CREATION OF A NOMINATING COMMITTEE AMONG BIG SHAREHOLDERS THAT WOULD PROPOSE A NEW SLATE OF DIRECTORS AT VOLVO'S REGULARLY SCHEDULED GENERAL MEETING NEXT SPRING IT'S A HIGHLY UNUSUAL STEP BY SWEDISH STANDARDS ACCORDING TO ANALYSTS THE CHALLENGE INTENSIFIED DOUBTS THAT MR GYLLENHAMMAR CAN REMAIN IN HIS POST MORE THAN A FEW MORE MONTHS EVEN IF SHAREHOLDERS EVENTUALLY APPROVE THE MERGER 9311260025 931126 FERROFLUIDICS CORP TO POST FOR FISCAL '93 RESTATED WIDER LOSS NASHUA NH FERROFLUIDICS CORP SAID THAT FOLLOWING FURTHER STUDIES OF ITS FINANCIAL CONDITION IT EXPECTS TO REVISE ITS PREVIOUSLY REPORTED NET LOSS WIDENING IT FROM 104 MILLION OR 203 A SHARE FOR THE YEAR ENDED JUNE 30 THE COMPANY IS ALSO RESTATING FISCAL 1992 NET INCOME AND REVENUE DOWNWARD FOR 1991 NET WILL BE REVISED UPWARD AND REVENUE WILL BE UNCHANGED IT SAID THE RESTATEMENTS MOSTLY REFLECT TIMING DIFFERENCES IN THE RECOGNITION OF REVENUE RECLASSIFICATION OF CERTAIN SHAREHOLDERS' EQUITY ACCOUNTS AND RESERVES AGAINST NONOPERATING ASSETS FERROFLUIDICS SAID THE REVISION OF 1993 RESULTS WILL RESULT IN REVENUE FOR THE YEAR OF MORE THAN 33 MILLION COMPARED WITH 296 MILLION PREVIOUSLY REPORTED THE CHANGE REFLECTS MOVING CERTAIN REVENUE TO FISCAL 1993 FROM FISCAL 1992 AS A RESULT OF THE RESTATEMENTS AND REVISIONS SHAREHOLDERS' EQUITY WILL BE ADJUSTED DOWNWARD TO ABOUT 22 MILLION OR 410 A SHARE FROM 256 MILLION OR 514 A SHARE THE COMPANY SAID THE CHANGES CONTINUE A TUMULTUOUS YEAR FOR FERROFLUIDICS A MAKER OF SEALS AND OTHER PRODUCTS BASED ON ITS MAGNETIC FLUID TECHNOLOGY THIS YEAR THE COMPANY HAS CONCEDED IT OVERSTATED SALES AND EARNINGS IN THE FIRST THREE FISCAL QUARTERS OF 1993 REMOVED ITS CHIEF EXECUTIVE OFFICER AND DISCLOSED A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION AND THE COMPANY HAS BEEN HIT BY SEVERAL SHAREHOLDER SUITS FERROFLUIDICS SAID THAT IT EXPECTS ITS AUDITORS COOPERS & LYBRAND TO DISCLAIM OR REFUSE TO GIVE ANY OPINION ON ITS RESTATED 1992 AND 1991 RESULTS IT SAID IT EXPECTS THE AUDITORS TO QUALIFY THEIR OPINION ON THE 1993 RESULTS BECAUSE OF UNCERTAINTIES RELATED TO SHAREHOLDER CLASSACTION LAWSUITS FILED AGAINST THE COMPANY FERROFLUIDICS SAID THE CHANGE IN RESULTS FOR THE LATEST FISCAL YEAR REFLECTS A 3 MILLION REDUCTION IN ASSET VALUATION BECAUSE OF THE INABILITY TO VALUE WITH ANY DEGREE OF CERTAINTY A MINORITY INVESTMENT IN AN UNAFFILIATED ENTITY THE LOSS FOR THE YEAR WAS ALSO WIDENED BY ABOUT 250000 BECAUSE OF COSTS RELATED TO CERTAIN SINGLEPREMIUM LIFEINSURANCE CONTRACTS FOR FORMER CHIEF EXECUTIVE RONALD MOSKOWITZ THOSE COSTS WERE PARTIALLY OFFSET BY A 16 MILLION INCREASE IN 1993 PRETAX PROFIT STEMMING FROM THE SHIFTING OF REVENUE AND COSTS FOR A CRYSTALGROWING SYSTEM CONTRACT TO 1993 FROM 1992 9311260024 931126 THIRDQUARTER LOSS FROM OPERATIONS SEEN AT MERRYGOROUND JOPPA MD MERRYGOROUND ENTERPRISES INC SAID UNCERTAIN FASHION TRENDS AND DISAPPOINTING SALES LED TO AN ESTIMATED OPERATING LOSS FOR THE FISCAL THIRD QUARTER ITS STOCK PRICE PLUNGED 15 THE SPECIALTY APPARELCONCERN ALSO ESTIMATED IT WOULD TAKE A CHARGE OF 28 MILLION TO 32 MILLION FOR THE THIRD QUARTER ENDED OCT 31 IN ORDER TO ACCELERATE INVENTORY WRITEDOWNS AND CLOSE STORES THE COMPANY PLANS TO ANNOUNCE A DEFINITIVE FIGURE WHICH COULD VARY FROM THE ESTIMATE ON THURSDAY WHEN NOVEMBER SALES FIGURES ARE DISCLOSED MERRYGOROUND SAID IT PLANS TO CLOSE 30 OF ITS 1450 STORES IN THE NEXT TWO YEARS AND WRITE DOWN SLOWMOVING INVENTORIES BECAUSE OF WEAK SALES EARLIER THIS YEAR MERRYGOROUND SAID IT WOULD CLOSE 50 STORES THAT IT ACQUIRED IN ITS PURCHASE OF THE CHESS KING MEN'S CLOTHING CHAIN IN ADDITION THE COMPANY PLANS TO MAKE LEASERELATED ACCOUNTING ADJUSTMENTS WHILE SEVERAL RETAILERS HAVE BEEN SHOWING IMPROVEMENTS IN RECENT MONTHS MERRYGOROUND HAS BEEN STRUGGLING TO REPOSITION ITS CHAIN STORES SITUATED PRIMARILY IN REGIONAL MALLS SALES AT STORES OPEN MORE THAN ONE YEAR A KEY BAROMETER OF RETAILERS' STRENGTH FELL 16 IN AUGUST 12 IN SEPTEMBER AND 17 IN OCTOBER BUT ANALYSTS SAID MERRYGOROUND'S POOR SHOWING IN THE PAST FEW MONTHS IS DUE AT LEAST IN PART TO THE COMPANY'S STRONG SALES PERFORMANCE LAST YEAR ANALYSTS SAID THE ACCELERATED WRITEDOWNS WOULD HELP THE COMPANY TRIM INVENTORY DURING THE CRUCIAL HOLIDAY PERIOD CLEARING THE WAY FOR CHANGES IN STORE FORMATS THE COMPANY IS TRYING TO REPOSITION ITSELF TO A WIDER AUDIENCE ESPECIALLY IN TERMS OF YOUNG MALE CUSTOMERS SAID TOM TASJHIAN AN ANALYST WITH FIRST MANHATTAN THEY HAVE INDICATED THAT THEY WILL BE REWORKING FORMATS THROUGH THE SPRING OF NEXT YEAR THERE'S NO QUESTION THIS IS A TRANSITION YEAR FOR THEM MERRYGOROUND STOCK PLUNGED 1125 TO 650 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WEDNESDAY IN THE THIRD QUARTER ENDED OCT 31 1992 MERRYGOROUND HAD NET INCOME OF 105 MILLION OR 20 CENTS A SHARE ON SALES OF 2298 MILLION 9311260023 931126 FIELDCREST ADOPTS MEASURE TO BLOCK HOSTILE TAKEOVER BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL FIELDCREST CANNON INC'S BOARD ADOPTED A SHAREHOLDER RIGHTS MEASURE THAT COULD BLUNT A HOSTILE TAKEOVER OF THE LARGE TEXTILE CONCERN THE ACTION WHICH COMES AS FIELDCREST IS COMPLETING THE PURCHASE OF ITS CONTROLLING SHAREHOLDER AMOSKEAG CO MAY DAMP SPECULATION THAT RIVAL SPRINGS INDUSTRIES INC WILL SOON MAKE A HOSTILE PLAY FOR FIELDCREST THE MEASURE WOULD MAKE IT PROHIBITIVELY EXPENSIVE FOR A POTENTIAL ACQUIRER TO TAKE OVER FIELDCREST WITHOUT THE SUPPORT OF FIELDCREST'S BOARD UNDER TERMS OF THE MEASURE WHEN AN OUTSIDE PARTY ACQUIRES 15 OR MORE OF FIELDCREST'S COMMON STOCK OTHER SHAREHOLDERS MAY EXERCISE THE RIGHT TO BUY A NUMBER OF FIELDCREST SHARES AT HALF OF THE MARKET PRICE AT THAT TIME SPRINGS A DIVERSIFIED TEXTILE MANUFACTURER BASED IN FORT MILL SC TRIED IN VAIN FOR MUCH OF THE YEAR TO ACQUIRE FIELDCREST FIELDCREST BASED IN EDEN NC WAS PUT ON THE BLOCK IN JANUARY FOLLOWING AMOSKEAG'S DECISION TO SELL ITS FIELDCREST STAKE SPRINGS HAS DECLINED TO COMMENT ON POSSIBLE PLANS TO PURCHASE FIELDCREST THE FIELDCREST BOARD ENACTED THE POISONPILL PROVISION ON THE SAME DAY THAT ONE PROMINENT SHAREHOLDER WYSERPRATTE & CO CALLED ON THE FIELDCREST BOARD IN A LETTER TO FORGET ANY NOTION OF IMPLEMENTING ANY TAKEOVER DEFENSES AND TO PUT THE COMPANY UP FOR SALE IMMEDIATELY WYSERPRATTE A NEW YORK INVESTMENT FIRM WHOSE CLIENTS OWN SOME 330000 OF FIELDCREST'S 85 MILLION SHARES OUTSTANDING HAS OPENLY CRITICIZED FIELDCREST'S PURCHASE OF AMOSKEAG AS HARMFUL TO SHAREHOLDERS JAMES M FITZGIBBONS FIELDCREST'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS VIGOROUSLY DENIED THE FIRM'S ASSERTIONS IN AN INTERVIEW WEDNESDAY HE DEFENDED THE SHAREHOLDER RIGHTS PLAN AS THE BEST POSSIBLE WAY TO BENEFIT ALL SHAREHOLDERS THE PLAN WILL NOT RESTRICT CONSIDERATION BY THE BOARD OF ANY OFFER ON TERMS FAVORABLE TO ALL SHAREHOLDERS MR FITZGIBBONS SAID THE DIRECTORS OF A PUBLIC COMPANY HAVE A FIDUCIARY DUTY TO ALL SHAREHOLDERS ALSO AT THE BOARD MEETING WEDNESDAY FIVE OF FIELDCREST'S 12 DIRECTORS RESIGNED ALL FIVE JOHN C BECK NOAH T HERNDON C EDWARD MIDGLEY JOHN M RUDEL AND HENRY WHEELER WERE AMOSKEAG APPOINTEES HOWEVER ONE AMOSKEAG REPRESENTATIVE FC DUMAINE REMAINED A DIRECTOR MR DUMAINE WHOSE AFFILIATION WITH FIELDCREST DATES BACK ABOUT 40 YEARS STAYED ON THE BOARD BECAUSE OF HIS STRONG EMOTIONAL TIE ACCORDING TO MR FITZGIBBONS 9311260022 931126 WHO'S NEWS TOKHEIM CORP TOKHEIM CORP FORT WAYNE IND THE MAKER OF PETROLEUMDISPENSING MARKETING SYSTEMS NAMED TWO DIRECTORS ROBERT M AKIN III 57 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HUDSON INTERNATIONAL CONDUCTORS A SUBSIDIARY OF PHELPS DODGE CORP AND JAMES K BAKER 61 CHAIRMAN OF ARVIN INDUSTRIES THE APPOINTMENTS EXPAND THE BOARD TO 10 MEMBERS 9311260021 931126 LEISURE & ARTS BOOKSHELF BLOOMIES THE DEPARTMENT STORE AS CELEBRITY BY MARYLIN BENDER WHAT BESIDES VULGARITY COULD MOTIVATE A WOMAN TO WEAR BIKINI UNDERPANTS WITH BLOOMIE'S EMBLAZONED ACROSS THE REAR A NEED PERHAPS TO BOLSTER HER SELFESTEEM BY PROCLAIMING AN INTIMATE RELATIONSHIP WITH A CELEBRITY IN THIS CASE THE STRIDENTLY POPULAR DEPARTMENT STORE ON MANHATTAN'S UPPER EAST SIDE IN HIS MEMOIR LIKE NO OTHER STORE TIMES BOOKS 428 PAGES 25 MARVIN TRAUB HEAD OF BLOOMINGDALE'S FOR TWO HYPERACTIVE DECADES REPORTS THAT 300000 PAIRS OF THE PANTIES WERE SOLD IN A SINGLE YEAR DURING HIS ADMINISTRATION BLOOMINGDALE'S WAS TRANSFORMED FROM A VENERABLE PRICECONSCIOUS EMPORIUM TO AN INSTITUTION WITH A NATIONALLY RECOGNIZED PERSONALITY THAT BORDERED ON THE HUMAN MANY CUSTOMERS MR TRAUB NEGLECTS TO NOTE SUFFERED A LOVEHATE RELATIONSHIP WITH THE STORE DECRYING ITS INDIFFERENT SERVICE AND DIMWITTED BILLING SYSTEM WHILE COMPULSIVELY SEDUCED BY ITS AURA AND MERCHANDISE CELEBRITY ATTRACTS SEX SELLS MR TRAUB WRITES HIS WINNING FORMULA PRESCRIBED NOT ONLY PROVOCATIVE UNDERWEAR BUT AN ENVIRONMENT FOR SHOPPERS STRAIGHT AND GAY WHO CRUISED FOR DATES ON SATURDAY AFTERNOONS WITH THE CUTTING EDGE MEN'S SHOPS AN ATTRACTIVE MINGLING PLACE FOR HOMOSEXUALS VARIOUS OTHER STRATAGEMS DEVISED BY HIS INVENTIVE MARKETING TEAM FURTHERED THE IMAGEBUILDING GOAL THESE INCLUDED HUGE INTERNATIONAL PROMOTIONS PARTIALLY UNDERWRITTEN BY CORPORATIONS SUCH AS MOBIL AND EASTMAN KODAK AND CONTINUOUS ROUNDS OF PARTIES WITH SOCIALITES AND POP STARS IN ATTENDANCE EVEN QUEEN ELIZABETH OF ENGLAND ONCE SHOWED UP ON BLOOMINGDALE'S DOORSTEP NOT SURPRISINGLY MR TRAUB FAVORED FREE PUBLICITY OVER PAID ADVERTISING EMULATING SUCH ELEGANT AND EMINENTLY QUOTABLE MERCHANTS AS WALTER HOVING OF BONWIT TELLER LATER OF TIFFANY & CO AND STANLEY MARCUS OF NEIMANMARCUS HE CAREFULLY CONTROLLED THE PRESS'S ACCESS TO INFORMATION ABOUT HIS STORE AS BLOOMINGDALE'S CHIEF SPOKESMAN THE UNCHARISMATIC MR TRAUB BECAME ONE OF THE 92 MOST PUBLICIZED PEOPLE IN THE WORLD ACCORDING TO ESQUIRE MAGAZINE APPARENTLY HE BELIEVED HIS PRESS CLIPPINGS IN HIS BOOK HE TAKES CREDIT FOR ALMOST EVERY MAJOR INNOVATION IN RETAILING INCLUDING THE REVOLUTIONARY CONCEPT OF DIVIDING FLOORS INTO SMALL BOUTIQUES THAT WAS PIONEERED BY GERALDINE STUTZ OF HENRI BENDEL MARVIN TRAUB IS NO LEE IACOCCA BUT HIS BOOK WRITTEN WITH TOM TEICHOLZ IS SEVERAL CUTS ABOVE THE STANDARD CEO'S AUTOBIOGRAPHY THE MERCHANT REVEALS HIMSELF TO BE AN ENDEARING EGOTIST PASSIONATELY IN LOVE WITH HIS BUSINESS AND HIS WIFE AND CHILDREN BRONXBORN HE WAS THE ONLY CHILD OF A SALES EXECUTIVE FOR A BRA AND GIRDLE MANUFACTURER AND HIS WIFE A PERSONAL SHOPPER AT BONWIT'S MR TRAUB IS A PRODUCT OF HARVARD BUSINESS SCHOOL CLASS OF '49 WHICH FORTUNE DUBBED THE CLASS THAT DOLLARS FELL ON HIS CAREER FOLLOWED AN UPWARD TRAJECTORY FOR 38 YEARS UNTIL 1988 WHEN BLOOMINGDALE'S BLUECHIP PARENT FEDERATED DEPARTMENT STORES FELL INTO THE CLUTCHES OF ROBERT CAMPEAU A MANIC CANADIAN REAL ESTATE DEVELOPER AT THIS POINT THE STORY ASSUMES TRAGIC DIMENSIONS ANYONE FAMILIAR WITH THE DESTRUCTIVE TAKEOVERS OF THE 1980S WILL NOT BE SHOCKED TO LEARN THAT MR CAMPEAU WAS ABLE TO CONCEAL THE SHAKINESS OF HIS EMPIRE BECAUSE THE BANKS NEVER SEARCHED VERY HARD INTO THE VALIDITY OF HIS FINANCIAL STATEMENTS MR TRAUB KNEW THAT HE COULD NEVER MEET THE INFLATED EARNINGS PROJECTIONS THE CANADIAN PRESENTED FOR BLOOMINGDALE'S ULTIMATELY THE STORE WAS DRAGGED INTO BANKRUPTCY ALONG WITH FEDERATED AS THE RETAIL CHAIN WAS CHOKED BY THE DEBT MR CAMPEAU INCURRED TO ACQUIRE IT IN AN AFFECTING CHAPTER MR TRAUB RECOUNTS HIS DOOMED ATTEMPT TO RESCUE THE STORE BY BUYING IT BACK FROM FEDERATED PETER PETERSON A FEDERATED DIRECTOR WHOSE TALENT FOR SELFPROMOTION ECLIPSES EVEN MR TRAUB'S ASSURED HIM THAT HIS INVESTMENT BOUTIQUE BLACKSTONE GROUP COULD SECURE FINANCING FOR THE BUYOUT IN JAPAN THE TRIP TO TOKYO TURNED OUT TO BE A CASE STUDY IN HOW NOT TO DO BUSINESS WITH THE JAPANESE WITH BLACKSTONE'S POOR PREPARATION OFFENDING POTENTIAL INVESTORS MR TRAUB RETURNED TO NEW YORK HUMILIATED AND SOON AFTER AT THE AGE OF 65 WAS DISMISSED BY THE NEW FEDERATED CHAIRMAN HE CURRENTLY HAS HIS OWN RETAIL CONSULTING BUSINESS ACCORDING TO THE AUTHOR HIS DEPARTURE MARKED THE END OF THE ERA OF INDIVIDUALITY OF DEPARTMENT STORES AND THEIR LEADERS OTHERS WOULD SAY THAT THE STRATEGY OF THE DEPARTMENT STORE AS THEATER HAD ALREADY RUN ITS COURSE AND THAT CONSUMERS ARE NOW UNABLE OR UNWILLING TO BE IDENTIFIED AS CONSPICUOUS SPENDERS RETAILING IS IN A STATE OF FLUX AND THE FIELD IS LITTERED WITH THE WRECKS OF FAMOUS DEPARTMENT AND SPECIALTY STORES WHAT THE FUTURE HOLDS IS FAR FROM CLEAR ALTHOUGH INTERACTIVE HOME SHOPPING BY TELEVISION SEEMS TO BE THE HOT TOPIC OF THE MOMENT THE FORMER CHAIRMAN OF BLOOMINGDALE'S IS ENTHUSIASTIC ABOUT THE NEW COMPETITOR NO ONE SHOULD BE SURPRISED TO FIND MARVIN TRAUB HAWKING DUDS BY PRINCESS DI ON THE TUBE ONE OF THESE DAYS MS BENDER IS A FORMER BUSINESS REPORTER AND EDITOR FOR THE NEW YORK TIMES 9311260020 931126 COMMODITIES LUMBER FUTURES AGAIN RISE BY ALLOWED MARGIN AS INVENTORIES DWINDLE WEATHER TURNS COLD BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO LUMBER FUTURES PRICES ON WEDNESDAY SOARED BY THE DAILY PRICEMOVEMENT LIMIT FOR THE SECOND CONSECUTIVE DAY BECAUSE OF LOW WHOLESALER INVENTORIES AND COLD WEATHER IN LUMBERPRODUCING REGIONS OF THE PACIFIC NORTHWEST AT THE CHICAGO MERCANTILE EXCHANGE LUMBER FOR JANUARY DELIVERY WAS UP 10 TO 40950 PER THOUSAND BOARD FEET UNDER CHICAGO MERC RULES THE DAILY PRICEMOVEMENT LIMIT FOR LUMBER FUTURES CONTRACTS WILL RISE TODAY TO 15 PER THOUSAND BOARD FEET ANALYSTS SAID THE MOST DIRECT REASON FOR THE RECENT RUNUP IN FUTURES PRICES WAS STRENGTH ON THE CASH MARKET FOR LUMBER CASH PRICES WERE QUOTED AT ABOUT 405 PER THOUSAND BOARD FEET WEDNESDAY UP ABOUT 30 SINCE LAST FRIDAY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH CASH PRICES ARE STRONG FOR A NUMBER OF REASONS INCLUDING A RECENT TENDENCY AMONG LUMBER WHOLESALERS TO KEEP THEIR INVENTORIES LOW PEOPLE HAVE LET THEM GO LOW BECAUSE THE PRICES ARE TOO HIGH SAID STEVE MOORE PRESIDENT OF MOORE RESEARCH CENTER A COMMODITY ANALYSIS FIRM IN EUGENE ORE THEY'RE AFRAID OF BUYING LUMBER WHILE THE PRICES ARE HIGH AND GETTING HURT IF THEY GO DOWN IN RECENT DAYS UNSEASONABLY COLD WEATHER HAS DESCENDED ON THE NORTHWESTERN US MR MOORE SAID THIS PREVENTS MILLS FROM PROCESSING AND SHIPPING LUMBER WHICH IN TURN CAUSES TEMPORARY SUPPLY SHORTAGES ANALYSTS EXPECT LUMBER PRICES TO CONTINUE TO RISE ALTHOUGH FEW ARE WILLING TO PREDICT A MAJOR PRICE SURGE OF THE KIND THE LUMBER MARKET SAW EARLY THIS YEAR WHEN LUMBER FUTURES PRICES PEAKED AT A RECORD 493 PER THOUSAND BOARD FEET I THINK THE ACTION THIS WEEK INDICATES THE RECENT HIGHS WILL BE TAKEN OUT MR O'NEILL SAID FOR THE JANUARY CONTRACT THE RECENT HIGH WAS 41960 PER THOUSAND BOARD FEET ON NOV 9 TODAY HE SAID PRICES ARE LIKELY TO RISE BY THE 15 LIMIT IN OTHER COMMODITY MARKETS ON WEDNESDAY GRAINS AND SOYBEANS CORN AND WHEAT FUTURES PRICES ROSE AT THE CHICAGO BOARD OF TRADE CORN FOR DECEMBER DELIVERY WAS UP 1 1/4 CENTS TO 279 A BUSHEL WHILE THE DECEMBER WHEAT FUTURES CONTRACT CLIMBED 1 1/4 CENTS TO 35625 A BUSHEL FARMERS HAVE BEEN RELUCTANT TO SELL THEIR LIMITED CORN HARVEST AT CURRENT PRICES SO THE MARKET IS SEEKING A LEVEL AT WHICH THEY CAN BE PERSUADED TO PART WITH THEIR GRAIN SAID DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO THE WHEAT MARKET GOT A BOOST FROM AN EGYPTIAN BID FOR 400000 TONS OF WHEAT HE SAID 9311260019 931126 COMMERZBANK POSTS 52 EARNINGS LEAP IN FIRST 10 MONTHS FRANKFURT COMMERZBANK AG VIEWED BY SOME AS A PROBLEMPLAGUED BANK ONLY A YEAR AGO YESTERDAY IMPRESSED ANALYSTS WITH A LEAP IN 10MONTH EARNINGS THE GROUP REPORTED GROUP OPERATING PROFIT SURGED 52 TO 909 MILLION DEUTSCHE MARKS 5342 MILLION IN THE FIRST 10 MONTHS OF THE YEAR FROM 599 MILLION MARKS A YEAR EARLIER DESPITE A SUBSTANTIAL INCREASE IN DOMESTIC LOAN PROVISIONING THE GROUP WAS ABLE TO REDUCE OVERALL PROVISIONS BY 21 TO 137 BILLION MARKS IT ALSO HINTED AT A 1993 DIVIDEND INCREASE THAT WOULD EXCEED THE BENEFITS OF A CHANGE IN THE GERMAN CORPORATE TAX CODE WHICH WOULD BE ABOUT ONE MARK INDEED SEVERAL ANALYSTS ARE BETTING ON A 12MARK PAYOUT UP FROM 10 MARKS IN 1992 MARTIN KOHLHAUSSEN CHAIRMAN OF THE BANK'S MANAGEMENT BOARD SAID A DECISION WOULD BE MADE ONCE FULLYEAR RESULTS HAVE BEEN REVIEWED IT'S AN EXCELLENT SET OF RESULTS SAID BRIAN WILKINSON BANKS ANALYST WITH CREDIT LYONNAIS SECURITIES IN LONDON WHILE MANY ANALYSTS HAD FOCUSED ON COMMERZBANK'S SOURING LOANS TO CANADIAN REAL ESTATE DEVELOPER OLYMPIA & YORK AND DANISH INSURANCE COMPANY HAFNIA AS WELL AS EXPOSURE TO THE FORMER SOVIET UNION THE BANK WAS RESTRUCTURING ITS OPERATIONS AND PARING COSTS MR WILKINSON SAID THAT INCLUDED REQUIRING ALL BRANCHES IN THIS OVERBANKED COUNTRY TO BE PROFITABLE MR KOHLHAUSSEN OUTLINED SOME OF THE RESTRUCTURING AT YESTERDAY'S NEWS CONFERENCE SOME OF THE 26 CLIMB IN NET FEE INCOME TO 155 BILLION MARKS IN THE 10 MONTHS FROM THE SAME PERIOD A YEAR AGO IS BECAUSE OF THE RESTRUCTURING AT THE BRANCH LEVEL HE SAID THE GROUP'S WORK FORCE ALSO DECLINED 04 TO 28671 AT THE END OF OCTOBER EVEN AS PERSONNEL COSTS ROSE 83 MR KOHLHAUSSEN SAID HE EXPECTS THE STAFF TO SHRINK BY ABOUT ANOTHER 1000 BY THE END OF 1995 BECAUSE OF THE REORGANIZATION AT BOTH THE BRANCHES AND HEADQUARTERS 9311260018 931126 THE REAL JOBS PROBLEM BY PHILIP KASINITZ ECONOMIST JOHN KAIN FIRST SUGGESTED IN 1968 THAT POOR BLACKS LACKED ACCESS TO JOBS ESPECIALLY MANUFACTURING JOBS IN PART BECAUSE THOSE JOBS WERE MOVING TO THE SUBURBS FAR FROM THE INNERCITY AREAS WHERE MOST POOR BLACKS LIVED THE IDEA HAS BEEN ELABORATED SINCE THEN AND ACCEPTED AS THE CONVENTIONAL WISDOM ITS POLICY FORM IS THE INITIATIVE KNOWN AS ENTERPRISE ZONES OR IN THE CLINTON VERSION EMPOWERMENT ZONES THE IDEA SOUNDS LIKE SIMPLE COMMON SENSE USE TAX BREAKS AND OTHER INCENTIVES TO ENCOURAGE BUSINESSES TO LOCATE IN POOR AREAS BRINGING JOB OPPORTUNITIES TO LOCAL RESIDENTS HOWEVER A STUDY OF EMPLOYMENT PATTERNS IN AN IMPOVERISHED BROOKLYN NEIGHBORHOOD CONDUCTED BY JAN ROSENBERG A SOCIOLOGIST AT LONG ISLAND UNIVERSITY AND ME SUGGESTS THAT ENTERPRISE ZONES WILL NOT BE ENOUGH THE PRIMARY REASON FOR GHETTO UNEMPLOYMENT IS NOT THE LACK OF NEARBY JOBS BUT THE ABSENCE OF SOCIAL NETWORKS THAT PROVIDE ENTRY INTO THE JOB MARKET RED HOOK BROOKLYN IS A NEIGHBORHOOD OF ABOUT 13500 RESIDENTS LOCATED ON A PENINSULA DIRECTLY ACROSS NEW YORK HARBOR FROM THE STATUE OF LIBERTY TODAY THE NAME IS USED TO DESCRIBE THE AREA CUT OFF FROM THE REST OF THE BOROUGH BY A CONFLUENCE OF HIGHWAYS AND THE TOLL PLAZA AT THE ENTRANCE TO THE BROOKLYN BATTERY TUNNEL IT IS A MIXEDUSE AREA THE RED HOOK HOUSES ONE OF THE CITY'S OLDEST AND LARGEST PUBLIC HOUSING PROJECTS SIT CLOSE TO A VARIETY OF SMALL INDUSTRIAL FIRMS IN 1989 463 OF RED HOOK RESIDENTS LIVED BELOW THE POVERTY LEVEL THREE OUT OF FOUR LOCAL RESIDENTS LIVE IN THE RED HOOK HOUSES THE REST LIVE IN THE BACK A CLUSTER OF PRIVATE HOUSING AND SMALL TENEMENTS OCCUPIED BY THE REMNANT OF THE OLD WORKINGCLASS WHITE POPULATION AS WELL AS BY BLACKS AND PUERTO RICANS THE 1990 CENSUS FOUND THAT 48 OF AREA HOUSEHOLDS RECEIVED PUBLIC ASSISTANCE AND 215 OF RED HOOK WORKERS WERE UNEMPLOYED RED HOOK'S MIX OF INDUSTRY AND IMPOVERISHMENT SEEMS TO CONFOUND THE LOGIC BEHIND ENTERPRISE ZONES NUMEROUS MANUFACTURING PLANTS AND JOBS EXIST IN A NEIGHBORHOOD WITH HIGH LEVELS OF POVERTY UNEMPLOYMENT AND CRIME HOW CAN THIS BE EXPLAINED IN ORDER TO FIND OUT MORE ABOUT WHY RED HOOK RESIDENTS DON'T GET RED HOOK JOBS WE CONDUCTED A SURVEY OF LOCAL EMPLOYERS OUR INTERVIEWS REVEALED TWO GENERAL REASONS WHY THEY TEND NOT TO HIRE LOCALS THERE IS SUBSTANTIAL POSITIVE DISCRIMINATION IN FAVOR OF NONRESIDENTS AS WELL AS CONSIDERABLE NEGATIVE DISCRIMINATION AGAINST RESIDENTS THOUGH RACIAL AND ETHNIC STEREOTYPES PLAY SOME PART IN THESE PATTERNS THEY ARE FAR TOO COMPLEX TO BE EXPLAINED EXCLUSIVELY IN SUCH TERMS THE PRIMARY QUALITY EMPLOYERS LOOK FOR IN AN UNSKILLED POSITION IS RELIABILITY AND MOST REPORT THAT THE BEST WAY TO FIND RELIABLE EMPLOYEES IS BY PERSONAL REFERRAL WE HIRE ALMOST ENTIRELY BY WORD OF MOUTH SAID THE OWNER OF A SMALL RECYCLING CENTER I HAVE A COUPLE OF GUYS WHO BROUGHT IN ALMOST EVERYBODY ALL THE UNSKILLED ANYWAY THEY BRING IN THEIR FRIEND THEIR COUSIN WHATEVER I HAVE HAD MAYBE FIVE GUYS COME IN OFF THE STREET AND ONLY TWO OR THREE HAVE WORKED OUT EVEN FOR A SHORT TIME HIRING OFF THE STREET IS RARE EVEN IN THE LOWESTPAYING JOBS A COMMERCIAL BAKER NOTED WE'LL GIVE ANYONE WHO WALKS IN OFF THE STREET AN APPLICATION THE LIKELIHOOD OF THEIR BEING HIRED IS SLIM BECAUSE WE DON'T KNOW THEM WE DON'T TEND TO JUST TAKE PEOPLE OFF THE STREET BECAUSE I'VE HAD A LOT OF BAD EXPERIENCES THAT'S TRUE OF ALL ETHNIC GROUPS INCLUDING WHITE AMERICANS THE RELIANCE ON REFERRALS OFTEN AMOUNTS TO A RELIANCE ON ETHNIC NETWORKS THIS WAS NO SURPRISE IN SMALL RETAIL BUSINESSES WHICH ARE USUALLY FAMILYRUN BUT LARGER BUSINESSES ALSO OFTEN HIRE THROUGH ETHNIC NETWORKS THOUGH EMPLOYERS ARE SOMETIMES ONLY PERIPHERALLY AWARE OF HOW THE PROCESS WORKS ONE LARGE CONTRACTOR REPORTED THAT MORE THAN HALF HIS WORKERS ARE IMMIGRANTS FROM SPAIN WHO COMMUTE INTO RED HOOK EACH DAY FROM JERSEY CITY AND NEWARK THEY ALL KNOW EACH OTHER OVER THERE I GUESS AND WHEN THEY HEAR WE HAVE AN OPENING SOMEBODY JUST SHOWS UP NETWORKS SERVE AT LEAST THREE FUNCTIONS IN THE LABOR MARKET FIRST THEY PROVIDE SPECIFIC INFORMATION ABOUT THE AVAILABILITY OF JOB OPENINGS AND HOW TO PURSUE THEM SECOND THEY PROVIDE ROLE MODELS OF SUCCESSFUL EMPLOYEES THIRD AND PERHAPS MOST IMPORTANT THEY CAN PROVIDE DIRECT SPONSORSHIP A CURRENT EMPLOYEE MAY DIRECTLY VOUCH FOR A PROSPECTIVE WORKER IF THE NEW EMPLOYEE WORKS OUT THE CREDIBILITY OF THE SPONSOR IS ENHANCED SOCIAL NETWORKS NOT RESIDENTIAL GEOGRAPHY TEND TO DETERMINE EMPLOYMENT DECISIONS SOCIAL NETWORKS MAY BE CENTERED ON A PARTICULAR NEIGHBORHOOD BUT THEY ARE OFTEN NOT PARTICULARLY IN THE SORT OF HIGHCRIME GHETTOS THAT DISCOURAGE THE FORMATION OF STRONG LOCAL TIES IN AREAS LIKE RED HOOK RESIDENTS TEND NOT TO BE EMBEDDED IN SOCIAL NETWORKS THAT CONNECT THEM TO PRIVATESECTOR JOBS EVEN JOBS IN THEIR OWN NEIGHBORHOOD OUR STUDY ALSO FOUND CONSIDERABLE DISCRIMINATION AGAINST LOCAL RESIDENTS ALTHOUGH MOST EMPLOYERS WERE EAGER TO MAKE CLEAR THAT THEY DO NOT PRACTICE RACIAL DISCRIMINATION FEW SHOWED ANY HESITATION ABOUT DESCRIBING LOCALITY DISCRIMINATION AGAINST GHETTO PEOPLE IN SOME CASES EMPLOYERS PREFERRED NOT TO HIRE PEOPLE WHO LIVED TOO CLOSE TO WORK FOR FEAR THAT THE COMPLICATED LIVES OF THE POOR WOULD SPILL INTO THE WORKPLACE MORE OFTEN HOWEVER THE FOCUS OF LOCALITY DISCRIMINATION WAS THE FEAR OF CRIME AN EMPLOYER WITH A LARGE FACILITY ON THE WATERFRONT POINTED WITH PRIDE TO HIS ALLBLACK TEAM OF SECURITY GUARDS WEST INDIAN IMMIGRANTS WHO COMMUTE FROM CENTRAL BROOKLYN AND QUEENS BUT SCOFFED AT THE IDEA OF HIRING LOCAL BLACKS WHAT THE BUMS HANGING AROUND OUTSIDE YOU WANT ME TO HIRE THE GUYS WHO ARE TRYING TO ROB ME A RECYCLER RESPONDED IN THIS WAY TO OUR ATTEMPT AT SUBTLY RAISING THE QUESTION OF HIRING LOCALS LOOK I KNOW WHAT YOU'RE DRIVING AT LET ME SAVE YOU SOME TIME DO I HIRE PEOPLE FROM THE PROJECTS I HAVE HAD MAYBE FIVE PEOPLE COME IN HERE OVER THE YEARS I GAVE ONE OR TWO A SHOT AND THEY DIDN'T LAST A DAY MOSTLY THEY GAVE ME THE IMPRESSION THAT THEY WERE JUST LOOKING AROUND SO THEY COULD COME BACK FOR THEIR REAL JOB' BURGLARY AT NIGHT CONCERN ABOUT CRIME IN THE AREA IS BY NO MEANS UNREASONABLE MOST OF THE RED HOOK EMPLOYERS HAVE EXPERIENCED PILFERAGE AND MANY HAVE HAD EMPLOYEES MUGGED NEGATIVE FEELINGS ABOUT THE AREA ARE OFTEN TRANSFERRED TO THE RESIDENTS WE SEE JUNKIES WE SEE PROSTITUTES STANDING OUTSIDE AND I WOULDN'T HIRE SOMEONE WHO LIVED IN THAT THE PROJECTS HAVE A VERY STRONG STIGMA ATTACHED IT'S NOT JUST A MATTER OF RACE I DON'T DISCRIMINATE I'D BE VERY UPSET IF ONE OF MY PEOPLE DID BUT NATURALLY YOU DISTRUST SOMEBODY WHO COMES FROM A PLACE LIKE THAT IT'S UNFORTUNATE BECAUSE THERE ARE PROBABLY LOTS OF GOOD PEOPLE WHO LIVE THERE THERE WAS ONE SIGNIFICANT EXCEPTION TO THE PATTERN OF EMPLOYERS FAVORING NONLOCAL WORKERS FOUR OF THE FIVE NOTFORPROFIT AND PUBLICSECTOR EMPLOYERS WE SURVEYED DID HIRE LARGE NUMBERS OF PEOPLE FROM THE PROJECT IN CONTRAST TO THE PRIVATE FIRMS ALL OF THESE EMPLOYERS PERCEIVED HAVING EMPLOYEES WHO WERE PART OF THE COMMUNITY AS A SIGNIFICANT BENEFIT IN PART THIS IS BECAUSE NEIGHBORHOOD RESIDENTS ARE THEIR CLIENTS SO GOOD COMMUNITY RELATIONS ARE IMPORTANT TO THEIR BUSINESS YET IT ALSO SEEMS LIKELY THAT LOCAL RESIDENTS PARTICULARLY THOSE IN THE PROJECT DO BETTER IN PUBLICSECTOR EMPLOYMENT BECAUSE THAT IS WHERE THEIR CONNECTIONS THEIR SOCIAL NETWORKS ARE UNFORTUNATELY PUBLICSECTOR OPPORTUNITIES FOR POORLY EDUCATED APPLICANTS ARE SEVERELY LIMITED EVEN THE LEASTSKILLED POSITIONS IN THIS SECTOR EG DAYCARE WORKERS REQUIRE COMPLICATED LICENSING PROCEDURES DURING THE TIME WE WERE CONDUCTING OUR SURVEY ANOTHER EXCEPTION TO THE PATTERN OF NONLOCAL HIRING OCCURRED THE SOUTH BROOKLYN LOCAL DEVELOPMENT CORP BEGAN A REFERRAL SERVICE AIMED AT PLACING RESIDENTS IN LOCAL JOBS CONSTRUCTION CONTRACTORS WHO USED THE SERVICE LATER REPORTED THAT THE WORKERS HAD BASICALLY WORKED OUT THEY DID NOT HOWEVER START RECRUITING IN THE RED HOOK HOUSES RATHER THEY CREDITED THE FAVORABLE EXPERIENCE PROBABLY WITH SOME JUSTIFICATION TO THE SCREENING DONE BY THE LDC THE EMPLOYERS WERE WILLING TO TAKE A CHANCE ON PEOPLE THEY WOULD NOT NORMALLY HAVE HIRED BECAUSE THEY TRUSTED THE JUDGMENT OF THE LDC DIRECTOR WHOM THEY KNEW ANOTHER EXAMPLE OF THE VALUE OF NETWORKS OUR STUDY OF RED HOOK DEMONSTRATES THAT THE PRESENCE OF LOWSKILL JOBS IN POOR NEIGHBORHOODS IS NO GUARANTEE THAT THE POOR WILL HAVE ACCESS TO THOSE JOBS IN A LOOSE LABOR MARKET IT IS EASIER AND MORE EFFICIENT FOR EMPLOYERS TO FIND NEW EMPLOYEES THROUGH INFORMAL REFERRAL SYSTEMS PARTICULARLY WHEN LOCAL RESIDENTS ARE PERCEIVED AS UNRELIABLE AND PRONE TO CRIME HOW THEN CAN WE CONNECT GHETTO RESIDENTS WITH PRIVATESECTOR JOBS ONE PROMISING APPROACH EXEMPLIFIED BY THE LIMITED SUCCESS OF THE SOUTH BROOKLYN LDC AND MORE SYSTEMATICALLY BY AMERICA WORKS THE PRIVATESECTOR EMPLOYMENT AGENCY FOR WELFARE RECIPIENTS IS TO CREATE PROXY NETWORKS THAT CAN INFORM SOCIALIZE AND VOUCH FOR EMPLOYEES IN MUCH THE WAY SOCIAL AND ETHNIC NETWORKS DO NOW SUCH EFFORTS COULD GO A LONG WAY TOWARD GIVING POOR PEOPLE ACCESS TO JOBS EVEN IF THEY HAVE TO TAKE THE SUBWAY TO GET TO THEM MR KASINITZ TEACHES SOCIOLOGY AT HUNTER COLLEGE IN NEW YORK THIS ARTICLE IS ADAPTED FROM THE FALL ISSUE OF THE MANHATTAN INSTITUTE'S CITY JOURNAL 9311260017 931101 GLOBAL VIEW CALIFORNIA AGAIN IS A NATURAL BURN' VICTIM BY GEORGE MELLOAN LOS ANGELES FROM THE BALCONY OF MY DAUGHTER'S APARTMENT IN HOLLYWOOD I CAN SEE THE SMOKE ROLLING OUT OF THE SAN GABRIEL MOUNTAINS BEHIND ME THE TV IS OFFERING A RUNNING ACCOUNT OF THE DRAMA TAKING PLACE UP THERE THE SENSE OF TRAGEDY IS PALPABLE AS THE INTERVIEWERS TALK WITH PEOPLE WHO HAVE JUST SEEN THEIR HOMES AND WORLDLY POSSESSIONS CONSUMED BY WILDFIRE AT A HOSPITAL THE CAMERA VIEWS BANDAGED FIREMEN WHO WERE TRAPPED BY A SUDDEN SHIFT OF WIND AND SUFFERED SEARED SKIN AND LUNGS THE PHONE RINGS AND A FRIEND SAYS THE WIND IS BLOWING WHITE ASH FROM THE ALTADENA FIRE HER WAY SHE IS NOT COMFORTABLE AS SHE WATCHES WHAT LOOKS LIKE SNOW FALLING OUTSIDE SHE IS ADVISED TO HOSE DOWN HER ROOF AS A PRECAUTION SUCH WAS THE SCENE HERE LAST WEEK AS SOUTHERN CALIFORNIA SUFFERED ONE OF ITS WORST BRUSHFIRE OUTBREAKS IN YEARS FOURTEEN FIRES DESTROYED OR BADLY DAMAGED AT LEAST 537 HOMES AND FORCED SOME 30000 PEOPLE TO FLEE DANGER AREAS AN ACUTE YOUNG ACTRESS OF OUR ACQUAINTANCE NAMED MEG KELLY REMARKS WE DON'T HAVE WEATHER HERE WE HAVE EVENTS INDEED INHABITANTS OF THE LOS ANGELES MEGALOPOLIS EXPECT PERIODIC DRAMAS THINGS LIKE FIRES EARTHQUAKES URBAN RIOTS DEFENSE BUDGET CUTBACKS FRUIT FLY INFESTATIONS BUT LOS ANGELENOS ARE NOT SO LAID BACK AS TO IGNORE THE POSSIBILITY THAT THERE MIGHT BE SOME WAY TO REDUCE THE TOLL NEXT TIME THERE WAS MUCH TALK HERE LAST WEEK OF THE VULNERABILITY OF HOUSES WITH SHAKE ROOFS WHEN AN EMBER FROM BURNING BRUSH LANDS ON A WOODEN ROOF DRIED BY THE CALIFORNIA SUN IT WILL MOST LIKELY START TO BURN AND A GOOD MANY DID LAST WEEK LOCAL FIRE CODES NOW MOSTLY BAN SUCH ROOFS BUT OLDER HOMES STILL HAVE THEM YET ANOTHER FORM OF PROTECTION IS TO CLEAR AWAY CHAPARRAL WHICH BECAUSE OF ITS OILY LEAVES BECOMES HIGHLY FLAMMABLE IN THE DRY SEASON BUT THAT IS EXPENSIVE AND DOESN'T GUARANTEE AGAINST BURNING EMBERS FROM SOME NEARBY PROPERTY THERE IS ANOTHER WAY OF PROTECTING AGAINST WILDFIRES THAT HAS BEEN KNOWN TO MANKIND FOR CENTURIES IT IS CALLED CONTROLLED BURNING IT IS SAID THAT THE NATIVE AMERICANS WHO LIVED IN THIS AREA BEFORE THE WHITE MAN ARRIVED BURNED AWAY THE UNDERBRUSH PERIODICALLY BEFORE IT BECAME DENSE ENOUGH TO THREATEN THEM WITH A SUDDEN HOLOCAUST THEY HAD NO RANGE ROVERS OR JEEPS TO WHISK THEM SAFELY AWAY CONTROLLED BURNING WAS USED BY EARLY US SETTLERS TO CLEAR LAND FOR FARMING BEFORE THE ADVENT OF POWERFUL TRACTORS AND DEEP PLOWING FARMERS USED CONTROLLED BURNING TO CLEAR AWAY OLD GROWTH BEFORE REPLANTING CONTROLLED FIRES STILL CAN BE SEEN IN PARTS OF EUROPE WHERE TRADITIONAL FARMING METHODS ARE EMPLOYED BUT CONTROLLED BURNING IS NOT VERY ACCEPTABLE IN THIS AGE OF ENVIRONMENTALISM A CULTURE THAT IS PARTICULARLY STRONG HERE IN SOUTHERN CALIFORNIA THE TECHNIQUE IS EMPLOYED IN THIS REGION BY FIRE CONTROL AUTHORITIES BUT ONLY ON A VERY LIMITED SCALE JUST FIVE PROSCRIBED BURNS HAVE BEEN CONDUCTED THIS YEAR ACCORDING TO A LOS ANGELES TIMES REPORT THERE MIGHT HAVE BEEN MORE BUT FOR OBJECTIONS FROM ENVIRONMENTALISTS TO THE SMOKE AND THE DESTRUCTION OF NATURAL HABITAT FOR WILDLIFE EVEN THE CUTTING AWAY OF FLAMMABLE UNDERBRUSH IS OPPOSED BY SOME ENVIRONMENTALISTS WHO PROTEST THAT IT DESTROYS THE HABITAT OF ENDANGERED SPECIES SUCH AS THE STEPHENS KANGAROO RAT AND THE GNATCATCHER FOR YEARS NOW SOUTHERN CALIFORNIANS HAVE SOUGHT PRISTINE AIR QUALITY AND HAVE EMPLOYED ALL SORTS OF DRACONIAN MEANS TO ACHIEVE IT FUTURE STRINGENCIES MAY TOLERATE NOTHING MORE POLLUTING THAN THE ELECTRIC CAR ALTHOUGH IT IS HARD TO IMAGINE LOS ANGELENOS RIDDING THEMSELVES OF INTERNAL COMBUSTION ENGINES IT IS COUNTER TO THIS CULTURE TO BURN THINGS DELIBERATELY EVEN THOUGH LOGIC MIGHT SUGGEST THAT IT IS BETTER TO BURN THINGS DELIBERATELY THAN TO HAVE FIRE BURN YOU BY ACCIDENT SO FAR AS THE ENVIRONMENT IS CONCERNED THE RESULT IS PRETTY MUCH THE SAME WHEN BY NATURAL CAUSES OR MISCHANCE DRY UNDERBRUSH IS IGNITED AND THE FLAMES ARE FANNED BY WESTWARD BLOWING SANTA ANA WINDS AS HAPPENED LAST WEEK RIGID PUBLIC POLICIES HOWEVER PLAUSIBLE OFTEN HAVE LITTLE TOLERANCE FOR SIMPLE LOGIC CERTAINLY IT IS A LEGITIMATE PUBLIC POLICY GOAL TO TRY TO KEEP THE AIR LOS ANGELENOS BREATHE FREE OF THE SMOG THAT THE CITY'S CITIZENS COMPLAIN ABOUT SO MUCH BUT THERE ARE OTHER VALUES SUCH AS PROTECTING HOMES FROM FIRE THAT CAN GET LOST IN A WORLD WHERE DRACONIAN SOLUTIONS ARE DEMANDED ENVIRONMENTAL RADICALS THINK IT IMMORAL TO TRY TO BRING NATURE IN THE RAW UNDER BETTER CONTROL THEY RAIL AT DEVELOPERS FOR BUILDING MORE HOUSES TO ACCOMMODATE AN EXPANDING POPULATION POPULISM IS EMPLOYED TO DEPICT THE HILL DWELLERS AS RICH AND THOUGHTLESS EVEN THOUGH MANY PEOPLE WHO LOST HOMES LAST WEEK WERE BY NO MEANS RICH SOME YEARS AGO THIS CULTURE PENETRATED INTO THE MANAGEMENT OF THE NATIONAL PARKS AND FORESTS THAT COVER MUCH OF THE WESTERN US THE CONCEPT WAS THAT INSTEAD OF MANAGING THESE LANDS AS FOREST RANGERS HAD BEEN TAUGHT TO DO FOR YEARS THE WEST SHOULD BE ALLOWED TO RETURN TO THE WILDERNESS STATE DESIGNATED WILDERNESSES WERE MADE OFF LIMITS FOR MANMADE STRUCTURES AND MOTOR VEHICLES EVEN FIRE ENGINES WHEN UNCONTROLLED BARK BEETLE INFESTATIONS KILLED THE TREES MAKING THEM TINDER FOR MASSIVE FOREST FIRES THE CONCEPT SAID THAT THIS WAS NATURE'S WAY NATURAL BURN IT HAS SINCE BECOME EVIDENT THAT THE WORD PARK DOESN'T FIT THESE AREAS PARKS ARE PLACES WHERE THE WILDERNESS HAS BEEN BROUGHT UNDER MAN'S CONTROL THE BEAUTIES OF NATURE ARE ENHANCED BY CLEARING AWAY THE DETRITUS UNCHECKED NATURE LEAVES IN ITS WAKE YELLOWSTONE COULD HARDLY BE CALLED A PARK AFTER IT WAS BLACKENED BY DEVASTATING FOREST FIRES AND MARRED BY LARGE AREAS OF DEAD TIMBER THANKS TO THE WILDERNESS MOVEMENT THE LOS ANGELES REGION FOR ALL ITS BEAUTY IS NEITHER A PARK NOR A WILDERNESS IT IS A PLACE WHERE MILLIONS OF PEOPLE HAVE CHOSEN TO LIVE THEY HAVE BUILT A VAST METROPOLIS WHERE THEY EARN THEIR LIVINGS MAKING FILMS AIRPLANES ELECTRONIC DEVICES AND UNCOUNTABLE OTHER MARKETABLE PRODUCTS THEY AND THEIR PUBLIC AUTHORITIES DO MANY THINGS WELL AS MUST NEEDS BE THE CASE IF A GREAT CITY IS TO PROSPER HOWEVER HIGHMINDED THE ENVIRONMENTALISTS SOUND THEY DO NOT SERVE THE CITY WELL BY TELLING PEOPLE THEY SHOULD SUBMIT TO THE TENDER MERCIES OF MOTHER NATURE IN A PLACE LIKE THIS THE CONCEPT OF NATURAL BURN IS A VERY DANGEROUS ONE INDEED SOME 30000 PEOPLE FOUND THAT OUT LAST WEEK BY BEING ROUTED FROM THEIR HOMES AND SUFFERING THE TERROR OF A SNOW THAT RAINED ASHES AND EMBERS ON THEIR HEADS SEE RELATED LETTERS LETTERS TO THE EDITOR ENVIRONMENTALISTS AND CALIFORNIA FIRES WSJ NOV 26 1993 9311010007 YY93 MM11 9311260016 931126 DONNELLEY'S CATALOGS INSERT SALES EXCEED CAPACITY THIS HOLIDAY CHICAGO COMMERCIAL PRINTER RR DONNELLEY & SONS CO SAYS BOOKINGS FOR ITS RETAIL CATALOGS AND NEWSPAPER INSERTS FOR THIS CHRISTMAS SEASON WERE SO STRONG THE COMPANY HAD TO TURN AWAY BUSINESS BUT THAT DOESN'T NECESSARILY BODE WELL FOR RETAILERS JOHN R WALTER DONNELLEY'S CHAIRMAN AND CHIEF EXECUTIVE SAID IN AN INTERVIEW DONNELLEY WHICH PRINTS THE LIKES OF JC PENNEY CO CATALOGS AND NEWSPAPER INSERTS FOR WALMART STORES INC SAID IT WAS OVERSOLD FOR OCTOBER NOVEMBER AND THE FIRST HALF OF DECEMBER RETAILING IS GOING TO BE A MARKETSHARE GAME FOR THE NEXT FIVE YEARS PREDICTED MR WALTER THE INCREASED NUMBER OF CATALOG MAILINGS AND NEWSPAPER INSERTS BY RETAILERS IS AN EXPENSE AND A REFLECTION OF MARKDOWNS BUT FOR DONNELLEY WHICH DERIVES ABOUT ONETHIRD OF ITS 42 BILLION IN ANNUAL SALES FROM CATALOGS AND INSERTS ANXIETY IN THE RETAIL INDUSTRY CAN MEAN MORE BUSINESS WE'RE SEEING A MUCH STRONGER PROMOTIONAL PORTFOLIO IN THE FOURTH QUARTER AND GOING INTO 1994 SAID MR WALTER ALTHOUGH HE ADDED THAT THIS SEGMENT WON'T GROW AS QUICKLY NEXT YEAR AS SOME OF DONNELLEY'S OTHER BUSINESSES IN FACT REVENUE WILL BE DOWN THIS YEAR FROM 1992 THE COMPANY SAID BECAUSE OF CLOSURE OF SEARS ROEBUCK & CO'S CATALOG EARLY THIS YEAR AND A WEAK FIRST HALF FOR US RETAILING DONNELLEY EARNED 731 MILLION OR 47 CENTS A SHARE ON SALES OF 12 BILLION IN LAST YEAR'S FOURTH QUARTER DONNELLEY EXECUTIVES SAID THEY ARE COMFORTABLE WITH WALL STREET'S ESTIMATES OF 51 CENTS TO 52 CENTS A SHARE NET FOR THE CURRENT QUARTER FOR ALL OF 1992 THE COMPANY EARNED 2347 MILLION OR 151 A SHARE ON SALES OF 42 BILLION 9311260015 931126 TECHNOLOGY FDA PLANS TO SEIZE CERTAIN INVENTORIES OF OPTICAL RADIATION LOS ANGELES OPTICAL RADIATION CORP SAID THE FOOD AND DRUG ADMINISTRATION HAS BEGUN LEGAL ACTION TO IMPOUND ITS INVENTORY OF ONEPIECE INTRAOCULAR LENSES BECAUSE THE COMPANY DIDN'T COMPLY WITH MANUFACTURINGPRACTICES RULES AN FDA SPOKESMAN CONFIRMED THE ACTION SAYING THE PLANNED SEIZURE WILL FOLLOW A SERIES OF INSPECTIONS AND NOTICES TO THE COMPANY OF THE DEFICIENCES RICHARD D WOOD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF OPTICAL RADIATION IN AZUSA CALIF SAID THE ACTION DOESN'T MEAN THE LENSES ARE UNSAFE AND NO RECALL OF ANY PRODUCT HAS BEEN REQUESTED BY THE FDA HE SAID THE MODELS AFFECTED BY THE FDA ACTION ACCOUNT FOR ABOUT 10 MILLION IN ANNUAL SALES OPTICAL RADIATION A MAKER OF OPTICAL COMPONENTS FOR THE VISIONCARE MARKET HAD SALES OF 158 MILLION IN THE FISCAL YEAR ENDED JULY 31 IN NASDAQ STOCK MARKET TRADING OPTICAL RADIATION SHARES CLOSED WEDNESDAY AT 1325 A SHARE DOWN 1 AFTER THE COMPANY'S ANNOUNCEMENT MR WOOD SAID THE COMPANY IS COOPERATING WITH THE FDA WHILE IT ASSESSES THE MOST APPROPRIATE RESPONSE TO THE ACTION HE SAID THE ACTION SURPRISED HIM AND OTHER MANAGERS BECAUSE THEY THOUGHT THE FDA WAS GENERALLY SATISFIED WITH ITS EFFORT TO COMPLY WITH MANUFACTURING RULES AMONG THE RULES IS ONE THAT REQUIRES A PRODUCER TO IDENTIFY IN ADVANCE A REJECTION RATE THAT WOULD TRIGGER A COMPANY INVESTIGATION OF WHY SOME ITEMS ARE REJECTED DURING MANUFACTURING AND INSPECTION THE FDA GENERALLY BELIEVES THAT SUCH GOOD MANUFACTURING PRACTICES HELP ASSURE SAFETY HOWEVER THE AGENCY DOESN'T CLAIM THAT A FAILURE TO COMPLY WITH THE RULES NECESSARILY MEANS THAT ITEMS PRODUCED ARE UNSAFE 9311260014 931126 TECHNOLOGY GENENTECH'S TPA IS FOUND TO BE FASTER IN OPENING ARTERIES SOUTH SAN FRANCISCO CALIF GENENTECH INC SAID A NEW STUDY SHOWS THAT ITS CLOTBUSTING DRUG TPA SAVES MORE LIVES THAN COMPETING DRUGS BY OPENING ARTERIES OF HEARTATTACK VICTIMS FASTER THE 2400PATIENT TRIAL WAS CONDUCTED AS PART OF A LARGER PREVIOUSLY REPORTED STUDY CALLED GUSTO THE NEW TRIAL SUPPORTS THE SCIENTIFIC HYPOTHESIS THAT ACHIEVING AN EARLY RESTORATION OF BLOOD FLOW THROUGH CLOTTED ARTERIES REDUCES DEATHS AND IMPROVES THE PROSPECTS FOR RECOVERY ACCORDING TO A REPORT IN THE NEW ENGLAND JOURNAL OF MEDICINE PATIENTS WHO ACHIEVED A FULL OPENING OF ARTERIES WITHIN 90 MINUTES HAD A MORTALITY RATE OF 39 FOR OPENING WITHIN 180 MINUTES THE MORTALITY RATE WAS 147 ACCORDING TO THE REPORT 81 OF PATIENTS TREATED WITH TPA AND INTRAVENOUS HEPARIN A BLOODTHINNING AGENT ACHIEVED OPENING OF ARTERIES WITHIN 90 MINUTES COMPARED WITH 54 OF PATIENTS TREATED WITH A DRUG CALLED STREPTOKINASE PLUS INJECTED HEPARIN AND 60 OF THOSE WHO RECEIVED STREPTOKINASE AND INTRAVENOUS HEPARIN RATES OF OPENING WERE SIMILAR AFTER 180 MINUTES BUT THOSE WHO ACHIEVED THE FASTEST RATES HAD IMPROVED HEART FUNCTIONS UNTIL MAY SALES OF GENENTECH'S TPA HAD BEEN LAGGING BECAUSE PREVIOUS TRIALS HADN'T INDICATED A CLEARCUT EDGE OVER STREPTOKINASE WHICH COSTS ONESIXTH TO ONETENTH AS MUCH AND IS SOLD BY ASTRA AB AND KABI FARMACIA AB OF SWEDEN AND HOECHST AG OF GERMANY BUT THE GUSTO TRIAL INDICATED THAT USE OF TPA SAVED ONE ADDITIONAL LIFE FOR EVERY 100 TREATED PATIENTS SINCE THEN TPA'S MARKET SHARE HAS GROWN TO ABOUT TWOTHIRDS OF HEARTATTACK PATIENTS RECEIVING THIS KIND OF CLOTDISSOLVING THERAPY FROM 50 9311260013 931126 INTERNATIONAL BAYER IS EXPECTING STABLE RESULTS IN '94 AFTER DECLINE IN '93 BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL LEVERKUSEN GERMANY BAYER AG'S EARNINGS SHOULD STABILIZE NEXT YEAR AFTER AN EXPECTED 20 PLUNGE IN 1993 PRETAX PROFIT CHIEF EXECUTIVE OFFICER MANFRED SCHNEIDER PREDICTED MR SCHNEIDER ADDED THAT THIS YEAR'S DIVIDEND PAYOUT WOULDN'T SUFFER DRAMATICALLY AS A RESULT OF THE CURRENT PROFIT FALL HE SUGGESTED IT IS POSSIBLE THAT DIVIDENDS WILL BE LEFT AT THEIR PRESENT LEVEL IN 1992 THE CHEMICAL COMPANY PAID A DIVIDEND PER SHARE OF 11 MARKS 646 DOWN FROM 13 MARKS IN 1991 LAST YEAR BAYER HAD CONSOLIDATED NET SALES OF 412 BILLION MARKS AND A DECREASED PRETAX PROFIT OF 27 BILLION MARKS THROUGH THE 1990S BAYER'S EARNINGS HAVE STEADILY DECLINED AS HAVE THOSE OF OTHER LEADING GERMAN CHEMICAL COMPANIES THEY HAVE BEEN HIT BY RECESSION IN EUROPE HIGH PRODUCTION AND LABOR COSTS AT HOME AND RISING INTERNATIONAL COMPETITION FROM LOWERCOST PRODUCERS IN THE FIRST NINE MONTHS OF 1993 COMPARED WITH THE YEAREARLIER PERIOD BAYER PRETAX PROFITS FELL 19 TO 18 BILLION MARKS SALES WERE DOWN 23 TO 31 BILLION MARKS POLYMERS SALES DECLINED BY 8 ORGANIC PRODUCTS 3 AND INDUSTRIAL PRODUCTS 7 HEALTHCARE SALES WERE UP BY 5 DESPITE GOVERNMENT PRESSURE ON HEALTHCARE COSTS AGROCHEMICAL SALES INCREASED BY 02 REGIONALLY MR SCHNEIDER SAID EUROPE WAS RESPONSIBLE FOR THE DECLINE AS ALL OVERSEAS MARKETS INCREASED SALES WE CANNOT SPEAK OF A WORLDWIDE RECESSION HE SUGGESTED OUR PRESENT PROBLEMS ARE CLEARLY CENTERED IN EUROPE WITH THE SITUATION IN GERMANY HAVING A PARTICULARLY NEGATIVE IMPACT NEVERTHELESS MR SCHNEIDER SOUNDED A MORE OPTIMISTIC NOTE IN TALKING TO REPORTERS AT A NEWS CONFERENCE YESTERDAY THERE ARE SOME SIGNS THAT WESTERN EUROPE HAS NOW REACHED THE BOTTOM OF THE CYCLE PRICE PRESSURE HAS CEASED TO INTENSIFY ALTHOUGH DEMAND REMAINS SOFT HOWEVER NO ONE KNOWS WHEN THE UPTURN WILL COME AND HOW RAPID IT WILL BE HE SAID MR SCHNEIDER ADDED AT THE MOMENT WE EXPECT 1994 EARNINGS TO STABILIZE AT AROUND THE 1993 LEVEL IN 1993 PRETAX PROFIT SHOULD BE IN THE REGION OF 22 BILLION MARKS FOR THE WHOLE YEAR DOWN ABOUT 20 AND SALES AROUND 40 BILLION MARKS DOWN AROUND 2 HE SAID HOWEVER MR SCHNEIDER WARNED IN ORDER TO ACHIEVE STABILIZATION IN 1994 BAYER MUST CONTINUE COSTCONTAINMENT AND RESTRUCTURING MEASURES 9311260012 931126 PEPPERAND SALT OF EITHER OUR BOAT OR OUR FRIENDS IN ONE HAND A LEASH IN THE OTHER A SCOOP REVOLVING AROUND THE LOVE OF A DOG 9311260011 931126 MARKETING & MEDIA INTERNATIONAL FAMILY RAISES BID TO ACQUIRE NOSTALGIA NETWORK VIRGINIA BEACH VA INTERNATIONAL FAMILY ENTERTAINMENT INC THE MEDIA COMPANY FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON ESCALATED EFFORTS TO BUY CABLE CHANNEL NOSTALGIA NETWORK INC INTERNATIONAL FAMILY LAUNCHED A TENDER OFFER VALUED AT ABOUT 296 MILLION TO PAY 2 FOR EACH NOSTALGIA NETWORK COMMON SHARE EACH SHARE OF NOSTALGIA PREFERRED STOCK WOULD RECEIVE 200 NOSTALGIA HAS ABOUT 144 MILLION COMMON SHARES OUTSTANDING AND 3875 PREFERRED SHARES NEITHER COMPANY WOULD ELABORATE ON THE ANNOUNCEMENT THE ALLCASH OFFER FOLLOWS AN OCT 7 PROPOSAL TO EXCHANGE 150 IN CASH AND 50 CENTS IN COMMON STOCK FOR EACH NOSTALGIA NETWORK COMMON SHARE EACH SHARE OF NOSTALGIA PREFERRED WOULD HAVE RECEIVED 150 IN CASH AND 50 IN COMMON STOCK THE OFFER EXPIRES DEC 22 UNLESS EXTENDED ASSUMING IT RECEIVES AT LEAST 50 OF THE SHARES INTERNATIONAL FAMILY PLANS A MERGER IN WHICH IT WILL ACQUIRE AT THE SAME PRICE THE NOSTALGIA SHARES NOT PURCHASED IN THE INITIAL OFFER NOSTALGIA BASED IN LOS ANGELES SPECIALIZES IN PROGRAMMING AIMED AT VIEWERS 45 AND OLDER AND HAS 14 MILLION SUBSCRIBERS INTERNATIONAL FAMILY HAS 574 MILLION SUBSCRIBERS AND OWNS AND OPERATES THE FAMILY CHANNEL CABLE NETWORK ABOUT 29 OF NOSTALGIA IS OWNED BY CONCEPT COMMUNICATIONS INC WHICH HAS BEEN SEEKING TO INCREASE ITS SHARE IN THE COMPANY CONCEPT HAS PROPOSED TO BUY ONE MILLION SHARES OF NOSTALGIA COMMON STOCK AT 2 A SHARE SUBJECT TO THE REMOVAL OF MICHAEL C MARCOVSKY NOSTALGIA'S CHAIRMAN FROM ALL OFFICES IN A LETTER TO NOSTALGIA'S BOARD TIMOTHY ROBERTSON CHIEF EXECUTIVE OFFICER OF INTERNATIONAL FAMILY SAID THE COMPANY WAS MAKING ITS NEW OFFER DIRECTLY TO NOSTALGIA STOCKHOLDERS OUT OF CONCERN OVER CONCEPT AND OTHERS GAINING MORE CONTROL OF NOSTALGIA THROUGH THE OPEN MARKET IN COMPOSITE TRADING WEDNESDAY ON THE NEW YORK STOCK EXCHANGE INTERNATIONAL FAMILY SHARES CLOSED AT 20875 UP 375 CENTS OR 18 IN OVERTHECOUNTER PINKSHEET TRADING NOSTALGIA SHARES WERE QUOTED AT 175 BID AND 181 ASKED 9311260010 931126 POWELL FISCAL 4THPERIOD CHARGES HOUSTON POWELL INDUSTRIES INC SAID IT WILL RECORD PRETAX CHARGES TOTALING 55 MILLION FOR THE FOURTH QUARTER ENDED OCT 31 THE COMPANY HAD EARNINGS OF 25 MILLION OR 18 CENTS A SHARE IN THE YEAREARLIER PERIOD POWELL SAID A 28 MILLION CHARGE WILL RESULT FROM ADOPTING NEW ACCOUNTING RULES FOR RETIREE MEDICAL BENEFITS THE REMAINING 27 MILLION IN CHARGES ARE ATTRIBUTABLE TO DOUBTFUL COLLECTIBILITY OF A RECEIVABLE LAWSUIT DEFENSE COSTS AND RESTRUCTURING OF A MINORITY INVESTMENT THE COMPANY SAID POWELL DESIGNS AND MAKES ELECTRICALGENERATION AND CONTROL EQUIPMENT 9311260009 931126 KARSTADT GROUP SALES RISE 19 THE COMPANY ALSO SAID IT EXPECTS ITS 1993 RESULTS TO BE BELOW THE PREVIOUS YEAR'S IN 1992 KARSTADT'S NET INCOME WAS 2241 MILLION MARKS ON SALES OF 206 BILLION MARKS WHILE THE 1993 FORECAST DIDN'T INCLUDE ANY SPECIFICS IT ECHOED THE GROUP'S PREVIOUS COMMENTS THAT THE FULLYEAR PROFIT OUTLOOK IS BELOW EXPECTATIONS 9311260008 931126 SUDS AND PHILOSOPHY LATHER UP BUSINESS FOR ODD DR BRONNER HIPPIES' SOAP MAKER OF CHOICE FINDS NEW AGERS SWOONING OVER DECADESOLD FORMULA BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL ESCONDIDO CALIF ALLONEGODFAITH INC IS NOT YOUR TYPICAL COMPANY AND EMANUAL BRONNER ITS FOUNDER AND CHAIRMAN IS NOT YOUR TYPICAL CEO HE MAKES AND SELLS CONCENTRATED PEPPERMINT SOAP HE UNABASHEDLY PEDDLES THIS STUFF AT 8 A QUART TO NEW AGERS AND OLD HIPPIES HEALTH JUNKIES AND HELL'S ANGELS ON HIS PLASTIC SOAP BOTTLES HE PRINTS THOUSANDS OF WORDS OF ARCANE DENSE PHILOSOPHY YOU CAN VISIT HIM BUT ONLY IF YOU HAVE READ AND ARE PREPARED TO DISCUSS HIS FINEPRINT FOR SAVING THE WORLD SOME CONSIDER HIM A GURU ALBEIT SOMETIMES A GRUMPY ONE ONCE MR BRONNER HUNG UP ON A PHONE CALLER GROWLING CALL ME BACK WHEN I'VE UNITED SPACESHIP EARTH TO SAY THAT MR BRONNER IS ECCENTRIC IS LIKE SAYING DR EMANUAL BRONNER'S PEPPERMINT PURECASTILE SOAP HIS MAINSTAY PRODUCT MAKES BUBBLES BUT THE 85YEAROLD MR BRONNER DR IS SELFBESTOWED CLAIMS TO SELL 4 MILLION WORTH OF SOAP A YEAR HIS LOYAL ALMOST CULT FOLLOWING AND AN INTUITIVE SENSE OF NICHE MARKETING PROVE THAT UNCONVENTIONAL ENTREPRENEURS STILL HAVE A PLACE IN AN AMERICA INCREASINGLY DOMINATED BY HOMOGENIZED CHAINS THOUGH MR BRONNER INVENTED HIS SOAP MORE THAN 50 YEARS AGO IT LANGUISHED IN RELATIVE OBSCURITY UNTIL THE LONGHAIRED PEACESIGNING HIPPIES OF THE '60S ADOPTED IT AS THE OFFICIAL SOAP OF THE COUNTERCULTURE HIPPIES HAVE FADED BUT COUNTERCULTURAL TRENDS STILL ROLL ACROSS THE LANDSCAPE THESE DAYS OUTDOOR LOVERS HEALTHCONSCIOUS CONSUMERS AND EVEN A FEW YUPPIES KEEP THE DEMAND FOR MR BRONNER'S MILD DOUBLEDISTILLED SOAP BRISK RAGNARS VEILANDS A 50YEAROLD DALLAS PHOTOGRAPHER AND FORMER HIPPIE EXPLAINS PART OF THE APPEAL SURE DR BRONNER MIGHT BE FROM MARS THE WAY HE THROWS STUFF TOGETHER BUT HIS BASIC IDEA OF PEACE WAS WHY PEOPLE BECAME HIPPIES IN THE FIRST PLACE DR BRONNER PUTS WHAT WE THOUGHT ON THE BOTTLE THE STORY OF WHAT GOES IN THE BOTTLE IS PRETTY INTERESTING TOO MR BRONNER LEFT GERMANY IN 1929 LEAVING BEHIND TWO GENERATIONS OF SOAPMAKER MASTERS THE GERMAN EQUIVALENT OF A PHD IN CHEMISTRY HE SAYS AND ARRIVED HOMELESS IN THE US AT FIRST HE BOUNCED BETWEEN CONSULTING JOBS FOR SOAP COMPANIES BY THE LATE 1940S AFTER MAKING HIS OWN SOAP FOR FRIENDS HE SAYS HE FOUND HIMSELF IN A DILAPIDATED LOS ANGELES HOTEL THERE USING A BROOM HANDLE HE BEGAN MIXING UP COMMERCIAL AMOUNTS OF HIS RECIPE IN TUBS WHEN HE WASN'T MIXING HE WAS THINKING AND ARRIVED AT A PHILOSOPHY A BIT OF ZEN AND A LOT OF MORALIZING HE CALLS THE MORAL ABCS HE DECIDED PHILOSOPHY AND SOAP LATHERED UP QUITE WELL TOGETHER AND BEGAN PRINTING RAMBLING ESSAYS IN TINY PRINT ON HIS CONTAINERS EVENTUALLY WORD SPREAD ABOUT THE STRANGE SOAP MAKER WITH THE HIP LINGO ON HIS BOTTLES AND ENVIRONMENTALLY SAFE SOAP INSIDE SOON THE YELLOWISH MINTY SOLUTION WAS WINNING FANS IN THE ODDEST OF PLACES DIRT RIDER MAGAZINE A BIKER'S BIBLE WOULD HAIL THE SOAP AS A FABULOUS GREASE CUTTER AT THE END OF A DUSTY DAY ALL YOU BIKIES CAN HIT THE SWIMMING HOLE AND TAKE TURNS SCRUBBING ONE ANOTHER WITH DR BRONNER'S THESE DAYS IF MR BRONNER IS FEELING PARTICULARLY GENEROUS HE WILL DRIVE VISITORS TO HIS SOAPWORKS A FENCEDIN FACTORY NEAR HIS MODEST HOME HERE DON'T EXPECT TO GET INSIDE FEARFUL THAT OTHER SOAP MAKERS MAY TRY TO STEAL HIS FORMULA HE TYPICALLY LIMITS TOURS TO THE PERIMETER BUT FROM THERE YOU CAN GET A GLIMPSE OF GIGANTIC DRUMS LOOKING LIKE PRIMITIVE PAINT CANS WHICH FEED A PRODUCTION LINE WHERE WORKERS PACKAGE DR BRONNER'S AT THE RATE OF ABOUT 12 BOTTLES A MINUTE THOUGH PEPPERMINT SOAP REMAINS HIS STAPLE MR BRONNER OVER THE YEARS HAS ADDED ALMOND EUCALYPTUS AND LAVENDER BRANDS TO HIS LINE INNOVATIONS LARGELY STOP THERE HE DOESN'T ADVERTISE SELLS ONLY TO HEALTHFOOD STORES AND RUNS HIS ENTIRE BUSINESS FROM HOME WITH THE HELP OF HIS ELDEST SON RALPH HIS WIFE GLADYS AND A FEW LOYAL SECRETARIES DEVOTEES MAKE REGULAR PILGRIMAGES TO ESCONDIDO TO MEET MR BRONNER HE IS EASY TO FIND BECAUSE HIS HOME ADDRESS AND TELEPHONE NUMBER ARE PRINTED ON EVERY DR BRONNER'S BOTTLE VISITORS SLEEP IN SMALL BUNKHOUSES ON HIS ROOF THEY FIND THAT CONVERSATION WITH MR BRONNER CAN EASILY SHIFT FROM RAIN FORESTS TO FREE SPEECH ALL SPRINKLED WITH ALLUSIONS TO STALIN JESUS AND HITLER LIKE MOST GURUS MR BRONNER CAN RAMBLE FOR HOURS ABOUT HIS PHILOSOPHY CHANGE THE SUBJECT AND HE IS APT TO BECOME SULLEN AS HE DID RECENTLY WHEN HE DECLARED YOU MUST NOT BE SO SHORTSIGHTED THIS IS COMPLEX STUFF SMALL MINDS DECAY AVERAGE MINDS DELAY GREAT MINDS TEACH ALLONE TODAY DID YOU GET THAT ON TAPE HE ASKS ONE VISITOR MISSING A BRONNER HOMILY IS NOT NECESSARILY A TRAGEDY SINCE HIS MORAL ABCS ARE PRINTED DENSELY ABOUT 2000 WORDS PER QUART ONTO THE LABEL OF EVERY SOAP BOTTLE ALONG WITH FREEFLOATING DIRECTIONS FOR USE DILUTE FOR EXAMPLE THE LABELS DETAIL MR BRONNER'S PLANS FOR EVERYTHING FROM KEEPING PEACE TO DESTROYING EVIL OH THE WORDS ARE THE BEST PART OF THE BOTTLE SAYS JUDY ERKFITZ WHO SELLS THE SOAP AT HER MICHIGAN NATURE'S BETTER WAY STORE HER MOTHERINLAW JUNE HAS VISITED MR BRONNER PERSONALLY SEVERAL TIMES AND REMARKS IT'S JUST AMAZING HOW THE WORDS COME OFF THE TOP OF HIS HEAD THE WORDS ARE CERTAINLY AMAZING CONSIDER MR BRONNER'S 7TH MAXIM EACH SWALLOW WORKS HARD TO BE PERFECT PILOTPROVIDERBUILDERTRAINERTEACHERLOVERMATE SO EACH DAY LIKE A BIRD PERFECT THYSELF FIRST THEN TEACH THE FRIEND & ENEMY THE MORAL ABC THAT UNITES ALL MANKIND FREE IF THE COMPANY HAS A SALESMAN IT IS 57YEAROLD RALPH BRONNER THE ELDER OF MR BRONNER'S TWO SONS FROM HIS MICHIGAN HOME MR BRONNER WHO ONCE SCOFFED AT HIS FATHER'S PRODUCT HAS BECOME ITS BIGGEST ADVOCATE I'D COME HOME FROM COLLEGE AND SEE DAD RECORDING HIS MORAL ABCS INTO FIVE OR SIX TAPE RECORDERS AT ONCE I NEVER THOUGHT IT'D WORK I THOUGHT IT SHOULD BE CALLED MINT GLOW OR SOMETHING MORE COMMERCIAL NOW HE TRAVELS THE COUNTRY VIRTUALLY FULLTIME DROPPING IN UNEXPECTEDLY ON HEALTHFOOD STORES TO CHAT AND CHECK SOAP SUPPLIES HE FINDS HE HAS ONLY ONE MARKETING PROBLEM FOLKS USUALLY THINK HIS FATHER IS DEAD OR FICTIONAL LIKE DR PEPPER HE SAYS 9311260007 931126 ADVERTISING NEW CABLE CHANNEL WILL TALK TURKEY AND LEFTOVERS BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL REESE SCHONFELD BELIEVES HE HAS AN IDEA THAT WILL MAKE ADVERTISERS' MOUTHS WATER THE FOUNDING PRESIDENT AND CHIEF EXECUTIVE OF CNN MR SCHONFELD HAS DEVELOPED A CABLE CHANNEL THE TELEVISION FOOD NETWORK THAT BEGAN AIRING SIX HOURS OF PROGRAMMING THIS WEEK TO SEVEN MILLION CABLE HOUSEHOLDS THIS WAS A FORMAT JUST WAITING TO BE DONE HE SAYS IT IS THE RARE HUMAN BEING WHO ISN'T INTERESTED IN FOOD BECAUSE OF THAT INTEREST MR SCHONFELD CONTENDS THAT THE FOOD NETWORK ISN'T SLICING THE AUDIENCE TOO THIN THE NETWORK BASED IN NEW YORK PLANS TO OFFER ADVERTISERS A MOST DESIRABLE DEMOGRAPHIC WOMEN 24 TO 55 YEARS OLD SO FAR MR SCHONFELD SAYS HE HAS BEEN SO BUSY GETTING THE PROGRAMMING READY THAT HE HASN'T FOCUSED MUCH ON ADVERTISERS HE HASN'T EVEN NAMED A VICE PRESIDENT FOR ADVERTISING SALES A POSITION HE EXPECTS TO FILL NEXT WEEK FOR AT LEAST THE FIRST FIVE WEEKS THE FOOD NETWORK WILL BE ALMOST COMMERCIALFREE CAMPBELL SOUP IS THE SOLE SPONSOR CAMPBELL SAYS IT MADE THE BUY FOR HUNDREDS NOT THOUSANDS OF DOLLARS FOR EACH 30SECOND COMMERCIAL BECAUSE IT FIT DIRECTLY INTO THE COMPANY'S MARKETING PLANS WE COULDN'T THINK OF A MORE LOGICAL FIT SAYS GARY MOSS VICE PRESIDENT OF GLOBAL ADVERTISING FOR CAMPBELL WHICH WILL ADVERTISE SOUP V8 JUICE PREGO SAUCES AND VLASIC PICKLES FURTHER MR MOSS SAYS HE ENVISIONS THE POSSIBILITY OF A PARTNERSHIP WITH THE FOOD NETWORK TO COPRODUCE SHOWS THE NETWORK PLANS TO CALL ON POTENTIAL ADVERTISERS NEXT WEEK A SPOKESMAN FOR RJR NABISCO SAYS WE ARE VERY OPEN TO NEW ADVERTISING PROPOSITIONS WE'D LOVE A SALES CALL NABISCO HAS PUT MONEY INTO EXPERIMENTAL MEDIA SUCH AS TELEVISION SETS IN DOCTORS' OFFICES THERE ARE OBSTACLES OF COURSE THE FOOD CHANNEL IS JUST ONE OF SEVERAL NEW CABLE CHANNELS BOMBARDING VIEWERS INCLUDING ESPN2 AMERICA'S TALKING AND TURNER CLASSIC MOVIES AND IT IS UNCLEAR WHETHER CONSUMERS WILL BE RIVETED BY NEWS ABOUT FOOD ALTHOUGH MANY KITCHENS NOW HAVE SMALL TELEVISION SETS THE MAJORITY OF CHANNEL GRAZING IS STILL DONE IN LIVING ROOMS AND BEDROOMS AND THE FOOD CHANNEL WILL HAVE TO BE A HIT WITH ADVERTISERS TO SURVIVE BECAUSE UNLIKE MANY CABLE NETWORKS IT WON'T HAVE A REVENUE STREAM FROM CABLE OPERATORS MR SCHONFELD SAYS THE CHANNEL EXPECTS TO LOSE MONEY FOR THREE TO FOUR YEARS STILL HE IS BETTING THAT THE NETWORK'S SMORGASBORD OF SHOWS RANGING FROM FOOD NEWS & VIEWS WHICH WILL PRESENT FOOD NEWS TO ROBIN LEACH TALKING FOOD IN WHICH THE CHRONICLER OF THE RICH AND FAMOUS WILL DISCUSS LIFESTYLE AND FOOD AND HOW TO BOIL WATER AIMED AT COMBATING CULINARY ILLITERACY WILL ENTICE VIEWERS AND ADVERTISERS MR SCHONFELD SAYS THE NETWORK WILL HAVE ALL TYPES OF PROGRAMS FOR MARKETERS WHOSE PRODUCTS ARE AIMED AT WOMEN FOR A SEGMENT TITLED FEED YOUR BABY HE SAYS THE NETWORK WILL SEEK ADVERTISERS OF BABY FOOD AND DIAPERS FOR A SHOW ON FEEDING YOUR PET HE SAYS NATURAL SPONSORS WOULD BE DOG AND CAT FOODS FURTHER THE CABLE EXECUTIVE SEES THE FOOD NETWORK AS A BOON TO LOCAL CABLE OPERATORS BECAUSE HE HOPES THEY WILL BE ABLE TO GET LOCAL RESTAURANTS AND SUPERMARKETS TO ADVERTISE THE LOCAL CABLE COMPANY WILL SELL THREE MINUTES OF ADS AN HOUR WITH THE FOOD NETWORK SELLING NINE MINUTES AND PROVIDING THREE MINUTES FOR PROMOTIONAL ANNOUNCEMENTS THE NETWORK IS PRIMARILY OWNED BY FIVE PARTNERS PROVIDENCE JOURNAL CO TRIBUNE BROADCASTING CONTINENTAL CABLEVISION SCRIPPS HOWARD CABLE AND LANDMARK COMMUNICATIONS LARRY GERBRANDT AN ANALYST WITH PAUL KAGAN ASSOCIATES IN CARMEL CALIF SAYS THE NETWORK SHOULD FIT COMFORTABLY WITH OTHER STRONGLY TARGETED CABLE SERVICES ADVERTISERS LOVE CABLE'S VERY SPECIFIC DEMOGRAPHICS HE SAYS CABLE IS ESPECIALLY A PERFECT ENVIRONMENT FOR THOSE SMALLER ADVERTISERS WHO CAN'T AFFORD PRIMETIME BROADCAST TELEVISION FURTHER COOKING IS A PROVEN WINNER ON TELEVISION THERE ARE MORE THAN A DOZEN COOKING SHOWS BROADCAST ON PUBLIC BROADCASTING SERVICE STATIONS INCLUDING GOURMET COOKING MEXICAN KITCHEN AND TODAY'S GOURMET PBS ITSELF DISTRIBUTES THREE SHOWS FRUGAL GOURMET CIAO ITALIA AND A NEW SERIES HOSTED BY JULIA CHILD TITLED COOKING WITH MASTER CHEFS MR SCHONFELD WHO WAS APPROACHED TO HEAD THE CABLE PROJECT BY THE PROVIDENCE JOURNAL SAYS A STUDY OF PBS RATINGS IN THE TOP 11 MARKETS CONVINCED HIM THE FOOD NETWORK WOULD BE A WINNER IN THE 1991 FOURTH QUARTER SEVEN PBS COOKING SHOWS AVERAGED A 11 RATING THAT ROSE TO A 16 RATING IN THE SAME PERIOD A YEAR LATER IN BOTH PERIODS 60 OF THE AUDIENCE WAS FEMALE IT IS RARE FOR A CABLE NETWORK TO DIE ONCE IT IS LAUNCHED EXCEPTIONS ARE THE MONITOR NETWORK CBS CABLE AND SATELLITE NEWS CHANNEL GETTING ON THE AIR IS THE MAIN OBSTACLE BUT THE FOOD NETWORK WAS AIDED BY FEDERAL REGULATIONS THAT ALLOW BROADCASTERS TO START DEMANDING PAYMENT FOR THEIR SIGNALS IN LIEU OF CASH PROVIDENCE JOURNAL WHICH OWNS SEVERAL TELEVISION STATIONS DEMANDED THAT THE FOOD NETWORK BE CARRIED BY SOME CABLE SYSTEMS THE FOOD NETWORK HOPES TO INCREASE ITS SUBSCRIBER BASE TO 18 MILLION CABLE HOUSEHOLDS WITHIN THREE YEARS IT INTENDS TO EXPAND ITS PROGRAMMING TO EIGHT HOURS BY MARCH AND THEN REACH ITS PROBABLE MAXIMUM 12 HOURS OVER THE NEXT 2 1/2 YEARS THE SHOWS WILL BE REPEATED SEVERAL TIMES EACH DAY AN INCREASINGLY POPULAR ADVERTISINGPROGRAMMING FORMAT IS MISSING FROM THE FOOD NETWORK'S DEBUT THE INFOMERCIAL NO WOKS NO JUICERS NO WACKY DIETS NO NOSTICK COOKING POTS AND PANS OUR POLICY IS TO BE INFOMERCIALFREE MR SCHONFELD SAYS IN THE FUTURE WHO KNOWS YOU NEVER SAY NEVER THE TELEVISION FOOD NETWORK WHICH IS PROMISING ADVERTISERS AN AUDIENCE OF WOMEN 24 TO 55 YEARS OLD IS SCHEDULING A SMORGASBORD OF PROGRAMS BEYOND TRADITIONAL COOKING SHOWS A SAMPLE MENU FOLLOWS NAME CHANGE RINEY ANGOTTI HEDGE NEW YORK HAS CHANGED ITS NAME BACK TO ANGOTTI THOMAS HEDGE TWO MONTHS AFTER BUYING A MAJORITY STAKE IN THE NEW YORK OFFICE OF HAL RINEY & PARTNERS BARRIE HEDGE PRESIDENT OF ANGOTTI THOMAS SAID THE SWITCH WAS DONE TO AVOID CONFUSION NOW THAT SAN FRANCISCOBASED RINEY IS IN MERGER TALKS WITH AYER NEW YORK THE POTENTIAL DEAL DOESN'T AFFECT THE ANGOTTI SHOP HE SAID COMMERCIAL STEVIE WONDER SINGS IN A COMMERCIAL PROMOTING AMERICAN EXPRESS CO'S CHARGE AGAINST HUNGER PROGRAM WHICH IS RAISING MONEY FOR HUNGERRELIEF GROUPS THE SPOT FROM WPP GROUP'S OGILVY & MATHER NEW YORK BROKE DURING THE NBC NETWORK'S BROADCAST OF THE MACY'S THANKSGIVING DAY PARADE YESTERDAY KETCHUM BRUCE CAMPBELL A 51YEAROLD SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR AT HAL RINEY & PARTNERS IS LEAVING THE AGENCY FOR THE SAN FRANCISCO OFFICE OF KETCHUM ADVERTISING A UNIT OF KETCHUM COMMUNICATIONS PITTSBURGH MR CAMPBELL WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF CREATIVE OFFICER OF THE KETCHUM SHOP WHO'S NEWS JACKSON D BROWN A 55YEAROLD ACCOUNT DIRECTOR AND SENIOR VICE PRESIDENT AT LEO BURNETT WAS ELECTED AN EXECUTIVE VICE PRESIDENT OF THE CHICAGO AD AGENCY 9311260006 931126 TECHNOLOGY & ENVIRONMENT EPA CALIFORNIA MOVE TOWARD ACCORD TO END FIGHT OVER AUTOEMISSIONS TEST BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES AFTER MONTHS OF HEATED PUBLIC ARGUMENTS THE CLINTON ADMINISTRATION AND CALIFORNIA STATE OFFICIALS ARE MOVING TOWARD AN AUTOMOBILEEMISSIONS TESTING COMPROMISE THAT WOULD AVOID HAVING THE STATE LOSE 700 MILLION IN FEDERAL HIGHWAYCONSTRUCTION FUNDS WHILE NO FORMAL AGREEMENT HAS BEEN REACHED AND THE TALKS STILL COULD COLLAPSE BOTH SIDES APPEAR READY TO EMBRACE A NEW DUALTRACK PROGRAM TO TEST VEHICLES FOR COMPLIANCE WITH CLEANAIR STANDARDS THE COMPROMISE BEING CONSIDERED ACCORDING TO STATE AND FEDERAL OFFICIALS ENVISIONS SETTING UP A CENTRALIZED NETWORK OF TESTING FACILITIES THAT WOULDN'T BE ALLOWED TO PERFORM ANY REPAIRS BUT THE STATE ALSO WOULD BE ALLOWED TO RETAIN AT LEAST FOR THE NEXT YEAR OR TWO A MODIFIED VERSION OF ITS CURRENT DECENTRALIZED POLLUTIONTESTING SYSTEM UNDER THAT SYSTEM BOTH TESTING AND REPAIRS ARE DONE BY THOUSANDS OF NEIGHBORHOOD GAS STATIONS AND PRIVATE SMOGCHECKING CENTERS THE ENVIRONMENTAL PROTECTION AGENCY SAID THAT THE POTENTIAL BREAKTHROUGH WAS PROMPTED BY WHAT IT CALLED A NEW WILLINGNESS ON THE PART OF STATE LEGISLATORS TO END THE MONTHSLONG STANDOFF STATE OFFICIALS HOWEVER MAINTAINED THAT THEIR BASIC STANCE HASN'T CHANGED AND THAT GOV PETE WILSON'S AIDES HADN'T SIGNALED A NEW POSITION ON THE ISSUE LESS THAN TWO WEEKS AGO RICHARD KATZ CHAIRMAN OF THE STATE ASSEMBLY'S TRANSPORTATION COMMITTEE SAID IN AN INTERVIEW THAT THE EPA'S STANCE IS DO IT THEIR WAY PERIOD AND WE'RE NOT GOING TO ROLL OVER MR KATZ ALSO SAID THAT THE AGENCY HAD REJECTED HIS PROPOSALS TO RUN A PILOT PROJECT TO DETERMINE WHETHER TO PHASE IN CENTRALIZED TESTING STATEWIDE NOW EPA OFFICIALS ARE TALKING ABOUT EMBRACING SUCH A PLAN IN FACT FOR THE SECOND TIME IN AS MANY MONTHS THE EPA'S TOP OFFICIALS APPEARED TO FLINCH AT THE ANTICIPATED POLITICAL COST OF IMPOSING ECONOMIC SANCTIONS ON THE ECONOMICALLY HARDPRESSED STATE THEY'RE SO FRIGHTENED AND SO RELUCTANT TO TAKE THAT STEP ONE CALIFORNIA ENVIRONMENTALIST SAID THEY ARE GRASPING AT ANY GLIMMER OF HOPE OUTLINES OF A POSSIBLE COMPROMISE EMERGED DURING DISCUSSIONS LAST WEEK BETWEEN STATE LEGISLATORS ENVIRONMENTAL ORGANIZATIONS AND MARY NICHOLS THE EPA'S TOP AIRPOLLUTION OFFICIAL THE EPA HAD SCHEDULED A NEWS CONFERENCE IN SAN FRANCISCO WEDNESDAY MORNING TO START THE CLOCK TICKING ON WITHHOLDING HIGHWAY FUNDS THEN IN A SURPRISE MOVE THAT ONE HIGHRANKING STATE ENVIRONMENTAL OFFICIAL SAID LEFT US FLABBERGASTED THE EPA REVERSED COURSE AND CANCELED THE CONFERENCE IN A THREEPARAGRAPH STATEMENT MS NICHOLS SAID THAT RECENT PROGRESS IN TALKS WITH CALIFORNIA LEGISLATIVE LEADERS CONVINCED THE AGENCY TO PUT SANCTIONS ON HOLD LONG ENOUGH TO EXPLORE POSSIBLE SOLUTIONS WITH ALL PARTIES 9311260005 931126 EXCENTRUST BANK CHIEF DAVID PAUL IS FOUND GUILTY OF 66 COUNTS OF FRAUD BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL DAVID L PAUL THE FORMER CHIEF EXECUTIVE OF CENTRUST BANK AND ONE OF THE MOST PROMINENT NAMES IN THE SAVINGS AND LOAN DEBACLE WAS CONVICTED OF 66 COUNTS OF FRAUD THE VERDICT ANNOUNCED WEDNESDAY IN FEDERAL COURT IN MIAMI FOLLOWED A SIXWEEK TRIAL IN ALL MR PAUL FACED 69 FELONY COUNTS MOST INVOLVING ALLEGATIONS THAT HE SIPHONED 32 MILLION FROM CENTRUST AND SPENT IT ON HIS 95FOOT YACHT AND HIS HOMES IN MIAMI AND ELSEWHERE DURING THE 1980S GOVERNMENT PROSECUTORS ALSO HAD CHARGED THAT MR PAUL FILED FALSE TAX RETURNS AND OBSTRUCTED AN ADMINISTRATIVE PROCEEDING OF THE OFFICE OF THRIFT SUPERVISION THE JURY ACQUITTED MR PAUL ON ONE COUNT OF MAIL FRAUD TWO PERJURY COUNTS WERE DISMISSED BEFORE THE CASE WAS SENT TO THE JURY MR PAUL AGE 54 FACES A MAXIMUM PRISON TERM OF FIVE YEARS AND A MAXIMUM FINE OF 250000 ON EACH COUNT SENTENCING WAS SET FOR FEB 11 MR PAUL AND HIS ATTORNEYS HAVE 10 DAYS TO FILE AN APPEAL NEITHER MR PAUL NOR HIS ATTORNEYS COULD BE REACHED FOR COMMENT AFTER THE VERDICT WAS ANNOUNCED PROSECUTORS ASKED THAT MR PAUL WHO IS FREE ON BOND BE TAKEN INTO CUSTODY IMMEDIATELY THEY CITED CONCERNS THAT HE MIGHT FLEE THE COUNTRY BUT US DISTRICT JUDGE DONALD GRAHAM REFUSED INSTEAD HE DOUBLED MR PAUL'S PERSONAL BOND TO 1 MILLION ALLAN J SULLIVAN ASSISTANT US ATTORNEY SAID HE WAS SATISFIED WITH THE JURY'S VERDICT THIS CASE WAS ABOUT EXPLOITATION AND GREED HE SAID THE JURY SENT A CLEAR MESSAGE THAT ABUSE OF OUR FINANCIAL INSTITUTIONS WILL NOT BE TOLERATED CENTRUST ONCE RANKED AMONG FLORIDA'S BIGGEST THRIFTS WITH 9 BILLION IN ASSETS IN 1989 MR PAUL DREW CRITICISM AND GAINED CELEBRITY STATUS FOR SPENDING SOME 28 MILLION OF CENTRUST FUNDS ON A COLLECTION OF PRE18TH CENTURY ART CENTRUST FAILED IN 1990 AT AN ESTIMATED COST TO TAXPAYERS OF 16 BILLION AND WAS PLACED IN FEDERAL RECEIVERSHIP IN THE TRIAL THE BULK OF THE TESTIMONY CAME FROM CONTRACTORS WHO WORKED ON MR PAUL'S HOUSE AND WERE PAID IN CENTRUST FUNDS TWO FORMER CENTRUST VICE PRESIDENTS WHO HAD PREVIOUSLY PLEADED GUILTY TO RELATED CHARGES DESCRIBED IN COURT HOW CENTRUST MONEY WAS SHUFFLED TO THOSE CONTRACTORS SOME OF THE MOST DAMAGING TESTIMONY CAME FROM ALEX DAOUD THE FORMER MAYOR OF MIAMI BEACH WHO SAID HE HAD TAKEN 35000 IN CENTRUST BRIBES TO HELP MR PAUL GET PERMITS FOR DOCK EXPANSION AT HIS HOUSE THE TRIAL THAT CONCLUDED WEDNESDAY REPRESENTS ONLY A PORTION OF THE GOVERNMENT'S CASE AGAINST MR PAUL A SECOND TRIAL IS EXPECTED TO BEGIN NEXT YEAR WHEN MR PAUL AND ANOTHER FORMER CENTRUST EXECUTIVE FACE SECURITIES CHARGES STEMMING FROM CENTRUST'S DEALINGS WITH AMONG OTHERS THE ROGUE BANK OF CREDIT & COMMERCE INTERNATIONAL 9311260004 931126 CORPORATE FOCUS CADBURY HOPES DR PEPPER WILL SATISFY ITS SWEET TOOTH FIRM SEEKS MERGER THAT WOULD MAKE IT LEADER IN NONCOLA MARKET BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CADBURY CHOCOLATE PANDAS IN BEIJING FOOD MARKETS DR PEPPER SODAS IN LONDON UNDERGROUND VENDING MACHINES ORANGE CRUSH ON TAP IN THE TAVERNS OF GDANSK FOR DAVID WELLINGS THE NEW CHIEF EXECUTIVE OFFICER OF CADBURY SCHWEPPES PLC SWEET DREAMS ARE MADE OF THESE LESS THAN SIX MONTHS INTO THE JOB MR WELLINGS HAS GIVEN HIMSELF A TALL ORDER TO MAKE CADBURY THE WORLD'S THIRDLARGEST CHOCOLATE MAKER AND THE LEADING PRODUCER OF NONCOLA SOFT DRINKS IT ISN'T AN UNREALISTIC GOAL EVER SINCE JOHN CADBURY STARTED SELLING TEA AND COFFEE IN 1824 THE COMPANY HAS SWALLOWED AN EVERLARGER SHARE OF THE GLOBAL BEVERAGE AND CONFECTIONERY MARKET THESE DAYS CADBURY IS THIRSTIER THAN EVER FOR EXPANSION IT IS MOVING INTO EMERGING MARKETS IN CHINA EASTERN EUROPE AND LATIN AMERICA WITH ITS RECENT PURCHASE OF US ROOT BEER MAKER A&W BRANDS INC AND A 259 STAKE IN DR PEPPER/SEVENUP COS IT IS CHALLENGING AMERICA'S SODA GIANTS FOR DOMINANCE IN THE NONCOLA SECTOR THE LATEST STRATEGY COULD OPEN A NEW ERA OF PROFITABILITY OR PROVE TO BE A COSTLY MISTAKE THE END RESULT DEPENDS ON A COMPANY CADBURY NEITHER OWNS NOR CONTROLS DR PEPPER BASED IN DALLAS IN AUGUST CADBURY PAID 2313 MILLION TO INCREASE ITS STAKE IN DR PEPPER THE US'S LARGEST NONCOLA MAKER ACCORDING TO BEVERAGE DIGEST TO 259 FROM 57 CADBURY SAW THE INVESTMENT AS A PRELUDE TO A JOINT VENTURE IF NOT AN ALLOUT MERGER COMBINED THE COMPANIES WOULD BECOME THE NO 3 SODA MAKER IN THE WORLD ALBEIT A DISTANCE THIRD BEHIND COCACOLA CO AND PEPSICO INC BUT DR PEPPER ISN'T BUBBLING OVER WITH ENTHUSIASM IT REFUSES TO PUT A CADBURY REPRESENTATIVE ON ITS BOARD IT RECENTLY ADOPTED A SHAREHOLDERRIGHTS POISON PILL PLAN TO PREVENT CADBURY FROM FURTHER INCREASING ITS STAKE IN AN INTERVIEW DR PEPPER'S CHAIRMAN JOHN ALBERS SAYS IF THERE IS SOMETHING THAT IS A WINWIN SITUATION WE'RE WILLING TO TALK FURTHER WITH CADBURY HOWEVER MR ALBERS SAYS BOTH COMPANIES DISCUSSED HOW TO PUT SOMETHING TOGETHER EVEN BEFORE THE BRITISH COMPANY INCREASED ITS STAKE BUT THE POSSIBILITIES DID NOT IN MY ESTIMATION OFFER ENOUGH BENEFITS TO THE SHAREHOLDERS OF DR PEPPER HE SAYS HE HASN'T HAD ANY CONTACT WITH CADBURY'S MANAGEMENT SINCE SEPTEMBER THE BALL IS IN THEIR COURT COURTING DR PEPPER COULD PROVE COSTLY IF IT DOESN'T RESULT IN A MERGER OR AT LEAST A CLOSER RELATIONSHIP CADBURY COULD BE LEFT HOLDING AN INVESTMENT THAT IS PROVIDING NO IMMEDIATE RETURN TO LOWER ITS DEBT DR PEPPER CURRENTLY ISN'T PAYING SHAREHOLDER DIVIDENDS THE DR PEPPER POISON PILL FORCES CADBURY TO BID FOR THE WHOLE COMPANY IF IT WANTS CONTROL BASED ON DR PEPPER'S CURRENT STOCK PRICE CADBURY WOULD HAVE TO RAISE MORE THAN 2 BILLION TO BUY THE SHARES IT DOESN'T NOW OWN MR WELLINGS BELIEVES DR PEPPER ULTIMATELY WILL WARM UP TO CADBURY HE SAYS HE IS MORE CONCERNED THAT THE COMPANIES JOIN FORCES IN THE NONCOLA SECTOR THAN HE IS IN HOW THE MARRIAGE IS CONSUMMATED AN OUTRIGHT MERGER HE ACKNOWLEDGES MAY NOT BE POSSIBLE THAT DOESN'T MEAN A FAILED ENDGAME THERE ARE MANY WAYS WE CAN COOPERATE OTHER THAN JOINING OUR EQUITY TOGETHER HE SAYS HIS SALES PITCH TO DR PEPPER'S MANAGEMENT IS THIS WE ARE A BUSINESS THAT IS GLOBAL IT COULD BE POSSIBLE FOR THE DR PEPPER BRAND WITH OUR HELP TO EXTEND ITS FRANCHISE OUTSIDE THE UNITED STATES LIKEWISE CADBURY DESPERATELY NEEDS DR PEPPER TO FULFILL ITS GLOBAL DESIGN EVEN WITH A&W BRANDS CADBURY ONLY CONTROLS ABOUT 56 OF THE US SOFT DRINKS MARKET THE WORLD'S BIGGEST WITH 47 BILLION IN ANNUAL SALES REFLECTING THE FACT THAT AMERICANS CONSUME MORE SOFT DRINKS PER CAPITA THAN WATER DR PEPPER/SEVENUP CONTROLS 11 OF THE US SOFT DRINKS MARKET IN THE US SALES OF NONCOLAS ARE OUTPACING COLA SALES DR PEPPER IS GROWING FASTER THAN ALL THE OTHER NONCOLAS VOLUME GROWTH OVER THE PAST THREE YEARS WAS TRIPLE THE GROWTH RATE OF THE US SOFT DRINKS INDUSTRY GENERALLY THAT IS WHY A SUCCESSFUL COMBINATION WITH CADBURY COULD PROVE SO LUCRATIVE MR WELLINGS SAYS CADBURY'S PURCHASE OF THE DR PEPPER STAKE MAY HAVE CONTAINED AN ELEMENT OF SURPRISE BUT THAT WASN'T IN ANY WAY INTENDED TO BE HOSTILE A HOSTILE BID HE INSISTS ISN'T IN OUR ETHIC THE MARKET'S REACTION AS WELL AS DR PEPPER'S HAS BEEN ICY CADBURY'S STOCK DROPPED AFTER IT ANNOUNCED ITS INCREASED STAKE IN DR PEPPER YESTERDAY IT CLOSED UP 25 PENCE AT 4475 PENCE DOWN FROM A 1993 HIGH OF 503 PENCE A SHARE ON MARCH 10 THOUGH ABOVE A LOW OF 407 PENCE ON MAY 21 STILL CADBURY HAS OUTPERFORMED THE FOOD COMPANY STOCKS THIS YEAR CADBURY'S TRACK RECORD IS GOOD SAY ANALYSTS WHO ARE GENERALLY POSITIVE ABOUT ITS FUTURE THE COMPANY EARNED 371 MILLION 5521 MILLION ON SALES OF 338 BILLION LAST YEAR AND DESPITE THE RECESSION IN EUROPE MR WELLINGS ESTIMATES NET INCOME WILL INCREASE 9 THIS YEAR AMONG ITS STRENGTHS CADBURY OWNS A CADRE OF SUCCESSFUL BRANDS INCLUDING ITS WELLKNOWN MILK CHOCOLATE BARS AND CREAM EGGS SCHWEPPES TONIC WATER CANADA DRY GINGER ALE MOTT'S APPLE JUICE AND SUNKIST ORANGE SODA THE CRUSH SODAS AND HIRES ROOT BEER CADBURY IS CONTINUING TO PRESS FOR A BOARD SEAT ON DR PEPPER AND MR WELLINGS SAYS HE IS CONFIDENT THE COMPANIES WILL BE ABLE TO COOPERATE IN THE FUTURE WE WILL CONTINUE TO REITERATE OUR CASE PATIENTLY AND COURTEOUSLY WE ARE A PATIENT COMPANY AND WE WILL TAKE AS MUCH TIME AS IT NEEDS HE SAYS MR WELLINGS AN OXFORD UNIVERSITY GRADUATE PREVIOUSLY MANAGED CADBURY'S CONFECTIONERY BUSINESS THE SEGMENT ACCOUNTS FOR JUST UNDER HALF THE COMPANY'S SALES WHILE MANY BRAND NAME COMPANIES ARE TRYING TO PUSH THEIR TRADITIONAL PRODUCTS INTO NEW MARKETS MR WELLINGS PLANS TO CONTINUE CADBURY'S STRATEGY OF ACQUIRING OTHER COMPANIES' BRANDS ALREADY SUCCESSFUL IN THEIR HOME MARKETS CHOCOLATE HE INSISTS IS AS MUCH A MATTER OF TASTE AS SAY A NATION'S WINES OR BREAD WE AREN'T LIKE MARS WHICH ROLLS OUT THE SAME BRAND EVERYWHERE IN PRECISELY THE SAME MANNER CADBURY HOWEVER DOES WANT TO IMITATE MARS'S GLOBAL SUCCESS CURRENTLY CADBURY RANKS AMONG THE SECOND TIER OF WORLD CHOCOLATE MAKERS WELL BEHIND NESTLE SA AND MARS NO 1 AND NO 2 RESPECTIVELY UNLIKE THE BEVERAGE SEGMENT COMPETITION IN THE CHOCOLATE MARKET IS MORE EVEN NO ONE COMPANY DOMINATES ALL THE MAJOR MARKETS SAYS TIMOTHY POTTER FOOD ANALYST AT LONDON'S SMITH NEW COURT SECURITIES LTD HERSHEY FOR INSTANCE IS NO 1 IN THE US BUT CADBURY LEADS IN THE UK 9311260003 931126 WHO'S NEWS COPLEY PHARMACEUTICAL INC COPLEY PHARMACEUTICAL INC CANTON MASS THE BOARD OF THIS GENERIC DRUG MAKER WAS EXPANDED TO EIGHT TO INCLUDE DONALD WHITCOMB JOSEPH H PATTERSON BRUCE A BENNETT AND KAREN WEINER DESIGNEES OF HOECHST CELANESE CORP AS REPORTED THE HOECHST AG UNIT HAS BEGUN A TENDER OFFER FOR 51 OF COPLEY'S FULLY DILUTED SHARES UNDER AN AGREEMENT FOR FIVE YEARS COPLEY'S BOARD WILL BE REORGANIZED TO CONSIST OF NINE DIRECTORS THREE OF WHOM WILL BE HOECHST CELANESE DESIGNEES THREE COPLEY DESIGNEES AND THREE INDEPENDENT DIRECTORS CHOSEN JOINTLY BY JAN 15 9311260002 931126 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS 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 PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/4 HIGH 2 1/2 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 332 60 TO 89 DAYS 331 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 257 ONE MONTH 275 TWO MONTHS 276 THREE MONTHS 285 SIX MONTHS 305 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 307 ONE MONTH 330 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 327 60 DAYS 325 90 DAYS 325 120 DAYS 325 150 DAYS 325 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 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 619 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY NOVEMBER 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 717 60 DAYS 725 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 713 60 DAYS 723 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311260001 931126 CREDIT MARKETS PRICES OF US TREASURY NOTES AND BONDS END NARROWLY MIXED IN ABBREVIATED TRADING SESSION BY THOMAS D LAURICELLA AND CANDACE CUMBERBATCH SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF US TREASURY NOTES AND BONDS ENDED NARROWLY MIXED ON WEDNESDAY DURING AN ABBREVIATED TRADING SESSION THE BOND MARKET REACTED LITTLE TO NEWS OF A JUMP IN DURABLE GOODS ORDERS IN OCTOBER THE COMMERCE DEPARTMENT REPORTED ORDERS FOR DURABLE GOODS ROSE 20 DURING OCTOBER BOND INVESTORS OFTEN REACT NEGATIVELY TO NEWS OF ECONOMIC STRENGTH BECAUSE THEY FEAR THAT IT WILL LEAD TO HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BUT THAT WASN'T THE CASE ON WEDNESDAY IT WAS A GOOD NUMBER FOR THE ECONOMY BUT IT WAS PRETTY MUCH ANTICIPATED AND IT DIDN'T HAVE ANY REAL IMPACT ON PRICES SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH 1000 FACE VALUE TO 99 5/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 630 FROM 631 ON TUESDAY TRADING ENDED AT 2 PM EST AHEAD OF THE THANKSGIVING DAY HOLIDAY THE BOND MARKETS WERE CLOSED YESTERDAY IN OBSERVANCE OF THE HOLIDAY TODAY WILL BE ANOTHER SHORTENED SESSION TRADING ON WEDNESDAY WAS VERY SLOW ALL IN ALL IT WAS A QUIET UNINSPIRED DAY WITH NO REAL THEME SAID MR JOHNSON PRICES HAD STARTED OUT HEADING HIGHER WEDNESDAY BUT THE MARKET WAS UNABLE TO HOLD ONTO ITS GAINS EARLY IN THE MORNING YOU HAD A CONTINUATION OF WHAT WE SAW TUESDAY MORE SHORTCOVERING BUT ONCE THAT DRIED UP THERE WAS NO SPONSORSHIP SAID TONY CRESCENZI HEAD OF FIXED INCOME AT MILLER TABAK HIRSCH & CO IN A SHORT SALE A DEALER SELLS A BORROWED SECURITY IN HOPES OF REPLACING IT AT A LATER DATE AT A LOWER PRICE DEALERS COVER SHORTS WHEN THEY BUY BACK THESE BORROWED SECURITIES NEWS OF CONTINUED STRONG AUTO SALES CONTRIBUTED TO THE SOFTENING OF PRICES AS THE DAY WORE ON PLAYERS SAID NORTH AMERICAN VEHICLE SALES REGISTERED A STRONG SEASONALLY ADJUSTED ANNUAL RATE OF 125 MILLION UNITS FOR MIDNOVEMBER TRADERS SAID THAT YIELDS ARE UNLIKELY TO MOVE MUCH TODAY WITH INVESTORS LOOKING AHEAD TO MONDAY WHEN THE FIRST DATA ON THE HOLIDAY RETAIL SEASON WILL BE AVAILABLE PLAYERS WILL THEN TURN THEIR ATTENTION TO NEXT FRIDAY WHEN THE NOVEMBER EMPLOYMENT REPORT WILL BE RELEASED THE EMPLOYMENT REPORT WILL BE THE FIRST OFFICIAL LOOK AT THE STATE OF THE ECONOMY IN NOVEMBER MEANWHILE A FLURRY OF BUYING IN THE MUNICIPAL BOND MARKET GAVE MOST ISSUES A LIFT IN LATE DEALINGS PRICES ROSE 1/8 TO 1/2 POINT HANS HANF A TRADER AT PRUDENTIAL SECURITIES INC SAID THERE WAS SOME DECENT INSTITUTIONAL BUYING BUSINESS BEFORE THE HOLIDAY OVER THE PAST FEW WEEKS MUNICIPAL BOND YIELDS HAVE BEEN RISING IN TANDEM WITH US TREASURYS THE NEW YORK STATE POWER AUTHORITY'S 525 COUPON BONDS MATURING IN 2018 BONDS FOR EXAMPLE ARE NOW PRICED TO YIELD 551 SLIGHTLY MORE THAN A MONTH AGO THOSE BONDS YIELDED ABOUT 520 BUT THE HIGHER YIELDS HAVE DRAWN MORE INVESTORS BACK INTO THE MARKET INVESTORS ARE FISHING FOR BARGAINS SAID MR HANF WEDNESDAY'S WINNERS IN THE MUNICIPAL BOND MARKET INCLUDED THE WASHINGTON DC METROPOLITAN AREA TRANSPORTATION AUTHORITY'S 525 COUPON REFUNDING BONDS MATURING IN 2014 THEY ROSE 1/8 POINT TO 97 FOR A YIELD OF 543 THE ALASKA HOUSING FINANCE CORP'S 590 COUPON BONDS MATURING IN 2033 ROSE 1/4 POINT TO 98 3/4 FOR A YIELD OF 597 INVESTORS IN SEARCH OF MUNIS WILL HAVE PLENTY OF NEW SUPPLY TO CHOOSE FROM NEXT WEEK THE PRICING CALENDAR CURRENTLY INCLUDES SAN JOSE CALIF'S 688 MILLION TAXALLOCATION BONDS AND A 165 MILLION OFFERING FROM THE CALIFORNIA HOUSING FINANCE AUTHORITY MERRILL LYNCH & CO IS THE LEAD UNDERWRITER FOR BOTH OFFERINGS NEW JERSEY'S 13 BILLION FISCAL 1994 SERIES A B AND C TAX AND REVENUE ANTICIPATION NOTES WILL BE SOLD VIA COMPETITIVE BIDDING NEXT WEDNESDAY THE ONLY ACTIVITY IN THE NEW ISSUE MARKET DURING WEDNESDAY'S SESSION CAME FROM TWO JUNK BOND DEALS BOTH PRICED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP MOBILEMEDIA COMMUNICATIONS INC RAISED 125 MILLION THROUGH AN OFFERING OF DEFERRED COUPON SENIOR SUBORDINATED NOTES AND ANCHOR GLASS CONTAINER CORP SOLD 200 MILLION OF SENIOR SUBORDINATED DEBENTURES TRADING IN THE INVESTMENTGRADE MARKET WAS QUIET WITH PRICES RELATIVELY UNCHANGED AS THEY FOLLOWED TREASURYS SPREADS REMAINED THE SAME PROVINCE OF ONTARIO'S BONDS BARELY REACTED IN THIN TRADING AFTER STANDARD & POOR'S CORP DOWNGRADED THE DEBT TO DOUBLEAMINUS FROM DOUBLEA THE DEBT WAS ALSO REMOVED FROM CREDITWATCH WHERE IT WAS PLACED IN SEPTEMBER AND THE RATING OUTLOOK IS NOW STABLE S&P SAID IN A STATEMENT THE SPREAD OF ONTARIO BONDS OVER TREASURYS NARROWED SLIGHTLY BECAUSE THE MARKET HAD BEEN ANTICIPATING THE DOWNGRADE ONE TRADER SAID IN FACT SOME MARKET PARTICIPANTS THOUGHT THE DEBT COULD HAVE BEEN DOWNGRADED EVEN FURTHER HE SAID TRADING IN THE JUNK BOND MARKET WAS EXTREMELY QUIET WITH PRICES UNCHANGED MOBILEMEDIA'S 10YEAR NOTES WERE PRICED AS 59948 FOR A 105 YIELD THE NOTES PAY NO INTEREST FOR THE FIRST FIVE YEARS AND THEREAFTER HAVE A 10 COUPON THE NOTES NOT CALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLECPLUS BY S&P ANCHOR GLASS CONTAINER PRICED ITS 15YEAR SENIOR SUBORDINATED DEBENTURES AT PAR TO YIELD 9875 THE DEBENTURES NOT CALLABLE FOR SEVEN YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P BOTH DEALS WERE REPORTEDLY OVERSUBSCRIBED ONE SYNDICATE OFFICIAL SAID 9311260104 931018 REVIEW & OUTLOOK EDITORIAL MEDICAL REFORM SIMPLIFIED NOW THAT HILLARY CLINTON HAS DANCED HER SOLO AND TAKEN HER BOWS WE'RE LEFT WITH THE REALITY OF THE ADMINISTRATION HEALTH PROPOSALS IN THE LIGHT OF DAY IT'S A GRADUATESEMINAR PROGRAM TO SHUFFLE AROUND ONESEVENTH OF GROSS DOMESTIC PRODUCT EVERYONE'S BEING POLITE OF COURSE BECAUSE OF THE FIRST LADY'S INVOLVEMENT AFTER ALL WHEN REP DICK ARMEY RAISED SOME ISSUES ANONYMOUS MEMBERS OF HER STAFF ACCUSED HIM OF PERSONAL ATTACKS TO CUT THROUGH THE CHILLING EFFECT THOUGH ASK ONE QUESTION EXCEPT FOR THE MEMBERS OF THE 500PERSON ADMINISTRATION TASK FORCE WHO SUPPORTS THESE PROPOSALS WELL THEY SELL WELL ENOUGH IN THE PUBLIC OPINION POLLS BUT THE SAME POLLS FIND THE PUBLIC QUITE SENSIBLY FEELS IT DOESN'T HAVE ENOUGH INFORMATION ABOUT THE PLAN TO MAKE A JUDGMENT SUPPORT FADES RAPIDLY AMONG THOSE IN A POSITION TO UNDERSTAND WHAT'S BEEN PROPOSED THOUGH OF COURSE ANYONE WITH EXPERTISE IS IPSO FACTO DISMISSED AS A SPECIAL INTEREST DRUG COMPANY EXECUTIVES AND MOST PHYSICIANS TREMBLE FOR THEIR FUTURE MANAGED COMPETITION ADVOCATES ONCE WERE CLINTON ALLIES AND SOME PHYSICIANS IN SUCH PLANS REMAIN ON BOARD BUT THE MOVEMENT'S INTELLECTUAL GURUS HAVE TURNED DERISIVE ANY ECONOMIST WHO SUPPORTS THE PLAN WILL BE A SORE THUMB WHEN EXECUTIVE NABOBS SIGN UP UNDERSTAND THE BAIT OF TAXPAYER PAYMENT FOR HEALTH CARE COSTS OF A DECLINING CORPORATION'S EARLY RETIREES COME TO THINK OF IT WE WONDER ABOUT SUPPORT AMONG THE 500 MEMBERS SINCE IT TURNS OUT THEY WERE MERELY A SMOKE SCREEN FOR A BRAINSTORM CLINTON ADVISER IRA MAGAZINER HAD IN HIS DRAWER ALL ALONG MR MAGAZINER'S BLUEPRINT HAS A RUBE GOLDBERG QUALITY WITH LEVEL UPON LEVEL OF ACRONYMS WHILE THIS DOES CONVEY AN IMAGE OF GRADUATE STUDENTS SCOOPING UP A HUNKS OF GDP FROM ONE PLACE AND DEPOSITING THEM IN ANOTHER MR MAGAZINER IS MORE CLEVER THAN THAT MUCH OF THE COMPLEXITY IS DIVERSION AND SHEER CAMOUFLAGE THE ESSENCE OF THE PLAN IS SIMPLICITY ITSELF RECORDED WITH GREAT CLARITY AND ECONOMY OF WORDS IN ONE SENTENCE ON PAGE 68 OF THE TIMES BOOKS VERSION OF THE PLAN OUTLINE TO WIT WHAT COULD BE MORE SIMPLE AN IDEA AS OLD AS HAMMURABI FOR HEALTH CARE REFORM THE NEW DEMOCRATS PROPOSE TO CLAMP PRICE CONTROLS ON ALL MEDICAL CARE MEDICAL FEES WILL BE SET BY GOVERNMENTSPONSORED HEALTH ALLIANCES PERIOD CONSUMERS WILL NOT BE ALLOWED TO PAY MORE TO SOMEONE ELSE EVEN IF THEY THINK IT'S WORTH IT THE REST OF THE PLAN IS DETAIL AND ARTIFICE THE ELABORATE STRUCTURE OF ALLIANCES ACCOUNTABLE HEALTH PLANS STATE BODIES AND NATIONAL BOARDS EXISTS TO PROVIDE THE MAXIMUM INSULATION OF POLITICIANS FROM THE RESULTS OF THEIR HAND THE ARRAY OF CHOICES IS A SHAM YOU WILL HAVE THE RIGHT TO CHOOSE A PRIVATE PHYSICIAN BUT HE WON'T BE THERE BECAUSE HE'S NOT ALLOWED TO RECOUP HIS COSTS IF THIS GIVES YOU A PROBLEM YOUR ALTERNATIVE IS THE OPTION OF PURSUING THE ISSUE WITH THE ALLIANCE OMBUDSMAN THIS CAMOUFLAGE IS NECESSARY BECAUSE PRICE CONTROLS DO NOT WORK CERTAIN RESULTS ARE ENTIRELY PREDICTABLE THE SUPPLY OF MEDICAL CARE WILL CONTRACT DOCTORS WILL RETIRE AND HOSPITALS WILL CLOSE THE DEMAND FOR MEDICAL CARE WILL INCREASE BECAUSE IT WILL BE MORE WIDELY REIMBURSED WITHOUT RATIONING BY PRICE THERE WILL BE RATIONING BY QUEUING WAITING LINES WILL DEVELOP FOR MEDICAL CARE HOWEVER A BLACK MARKET WILL DEVELOP FOR YOUR KIDNEY TRANSPLANT YOU WILL TRAVEL TO GRENADA THE BETHESDA NAVAL HOSPITAL AND THE NATIONAL INSTITUTES OF HEALTH OF COURSE WILL BE AVAILABLE FOR QUEUEJUMPING BY MR MAGAZINER MRS CLINTON AND OTHERS WITH POLITICAL INFLUENCE THE CONTRACTING SUPPLY OF AND EXPANDING DEMAND FOR MEDICAL CARE WILL NOT EXACTLY EASE PRICE PRESSURES NURSES AND DOCTORS WILL FORM LABOR UNIONS THREATENING TO STRIKE HOSPITALS THERE WILL BE CONSTANT POLITICAL PRESSURE FOR EXPANSION OF COVERED SERVICES AFTER ALL WHO WOULD REFUSE TO RECOGNIZE THE WORTH OF THE MEDICAL CARE DISPENSED TO NATIVE AMERICANS BY THIRDMESA SHAMANS THIS WILL NOT ALL HAPPEN OVERNIGHT TO BE SURE NOR IS THIS TO CLAIM THE PRESENT SYSTEM IS BEYOND IMPROVEMENT BUT IF ANYTHING LIKE THE BOLDFACED SENTENCE ABOVE IS EVER WRITTEN INTO LAW IN THE NOTTOOLONG RUN WE WILL BE PAYING THE SAME MONEY OR MORE FOR LOWER QUALITY AND VASTLY MORE INCONVENIENT MEDICAL CARE IT IS THE HISTORY OF PRICE CONTROLS SINCE HAMMURABI WHAT EMERGENCY JUSTIFIES SO DESPERATE A GAMBLE PRECISELY WHY SHOULD WE TEAR UP THE PRESENT HEALTHCARE SYSTEM BY ITS ROOTS WHY CAN'T WE BE SATISFIED WITH EVOLUTIONARY IMPROVEMENTS ALREADY CLEARLY UNDER WAY TO BUILD ON A SYSTEM THAT GIVES MOST AMERICANS ACCESS TO THE MOST ADVANCED MEDICAL CARE IN HISTORY WELL MEDICAL CARE COSTS HAVE BEEN RISING AND CLINTON ADMINISTRATION WORRIERS FEAR THEY WILL GOBBLE UP 100 OF GDP BUT IN FACT THE RATE OF INCREASE IN THE BLS HEALTH CARE INDEX HAS BEEN DROPPING RATHER SMARTLY FROM THE PEAK OF 96 IN 1990 TO 79 IN 1991 TO 66 IN 1992 THIS NO DOUBT REFLECTS EFFORTS OF EMPLOYERS TO CONTROL HEALTH COSTS AND THE SPREAD OF MANAGED COMPETITIONTYPE MEDICINE BUT MORE BROADLY THE DECELERATION SHOWS THE MARKET STILL HAS ITS DISCIPLINES ANYWAY THE OFFICIAL STATISTICS ARE DUBIOUS TO BEGIN WITH THEY'RE BASED ON LIST PRICES RATHER THAN TRANSACTION PRICES REMEMBER THAT PRICE CONTROLS ALREADY APPLY TO THE 40 OF MEDICAL SERVICES REIMBURSED BY THE GOVERNMENT FOR THE POOR AND ELDERLY AND THAT ANY ECONOMIST CAN EXPLAIN THAT PRICE CONTROLS ON PART OF A MARKET WILL ACCELERATE PRICE INCREASES IN THE REST THE SCARY STATISTICS MEASURE ONLY THE UNCONTROLLED PRICES THE SENSE OF CRISIS IS ALREADY A DISTORTION INTRODUCED BY PRICE CONTROL THE SECOND EMERGENCY THE ALLEGED 37 MILLION UNINSURED ALSO WILTS UNDER ANALYSIS TO BEGIN WITH THERE IS NO REASON TO BELIEVE THAT ANYONE IS BEING DENIED MEDICAL CARE WHATEVER THEIR INSURANCE COVERAGE THE POOR ARE PROVIDED FOR BY MEDICAID OF COURSE THE UNINSURED ARE PRINCIPALLY YOUNG PEOPLE JOINING THE LABOR FORCE OR THOSE BETWEEN EMPLOYERPAID PLANS STUDIES SHOW THAT 70 OF THEM ARE UNINSURED FOR LESS THAN NINE MONTHS ARGUABLY THE UNINSURED GET CARE IN BELATED AND EXPENSIVE WAYS THOUGH THEIR AVERAGE MEDICAL SPENDING IS CONSIDERABLY LESS THAN THAT OF THE INSURED THE LOSS OF COVERAGE BETWEEN JOBS AND THE ISSUE OF PREEXISTING CONDITIONS ARE REAL PROBLEMS AN ARTIFACT OF TAX LAWS THAT ENCOURAGE EMPLOYEES TO REQUEST AND EMPLOYERS TO PROVIDE MEDICAL PLANS INSTEAD OF CASH COMPENSATION THIS HAS UNFORTUNATE EFFECTS IN THIS ERA OF GROWING JOB MOBILITY BUT IS SCARCELY A REASON FOR TOTALLY OVERTURNING THE EXISTING SYSTEM LET ALONE RESORTING TO PRICE CONTROL THE BEST ANSWER IS TO FACILITATE MEDICAL SAVINGS ACCOUNTS OR MEDICAL IRAS AS SENATOR PHIL GRAMM HAS PROPOSED TO PUT MEDICAL CARE UNDER CONTROL OF INDIVIDUALS RATHER THAN THE EMPLOYERS AROUND THE WORLD WE LIVE IN A TIME OF INCREASING RESPECT FOR MARKET FORCES AND INCREASING SUSPICION OF CENTRAL MANAGEMENT THE COMMUNIST CENTRAL ECONOMIES HAVE COLLAPSED DIRIGISTE REGIMES IN EUROPE AND LATIN AMERICA ARE BUSILY PRIVATIZING GOVERNMENT ACTIVITIES YES MANY GOVERNMENTS DO HAVE SOCIALIZED MEDICAL SYSTEMS BUT MOST ALSO ALLOW PRIVATE ALTERNATIVES AND NEARLY ALL ARE IN DEEP FINANCIAL DISTRESS YET JUST WHEN SUCH LESSONS ARE BEING DIGESTED BY MOST OF THE WORLD THE CLINTON ADMINISTRATION OFFERS US A GRADUATESEMINAR CENTRALLY DIRECTED PRICECONTROLLED MEDICAL SYSTEM THE TEMPTATION OF COURSE WILL BE TO TRY TO COMPROMISE THIS MONSTROSITY INTO SOMETHING WORKABLE THE ADMINISTRATION HAS DANGLED BAIT BEFORE NOT ONLY VARIOUS SPECIAL INTERESTS BUT ALSO SINCERE REFORMERS THERE IS INDEED NOTHING WRONG WITH MANAGED COMPETITION AS A SPREADING WAY OF ORGANIZING MEDICAL CARE AS ONE ALTERNATIVE AND WITHOUT PRICE CONTROLS IT MAKES SENSE TO ORGANIZE EMPLOYEES OF SMALL BUSINESS INTO GROUPS OF AN INSURABLE SIZE BUT INTEREST GROUPS AND REPUBLICAN REFORMERS WILL FIND THAT YOU CANNOT BARGAIN WITH THE MINISTRATION BECAUSE YOU CAN'T TRUST IT IT'S LIKELY TO DOUBLECROSS YOU MERCK'S P ROY VAGELOS LEARNED THIS IN THE GREAT VACCINE CONTROVERSY WHEN THE PRESIDENT ACCUSED VACCINE MAKERS OF MAKING PROFITS AT THE EXPENSE OF CHILDREN THE VACCINE MAKERS THOUGHT THEY HAD A DEAL MAKING VACCINES MORE WIDELY AVAILABLE BUT MAINTAINING MARKET MECHANISMS BUT THE COMPROMISE ESCAPED THEM AT THE LAST MOMENT BECAUSE IT WAS EXPLAINED THE PRESIDENT AND FIRST LADY WANTED TO MAKE A STATEMENT WITH THE CURRENT FULLFLEDGED CLINTON PLAN DR VAGELOS REMARKS I THOUGHT THE REPUBLICANS TOOK A VERY FEEBLE POSITION THERE ARE INDEED THINGS THAT CAN BE DONE TO REFORM AND IMPROVE THE HEALTH CARE SYSTEM BUT WE ARE NOT LIKELY TO ARRIVE AT THEM ON THE BASIS OF A PROPOSAL WITH PRICE CONTROLS AT ITS CORE TO MAKE PROGRESS WE NEED TO GET THE CLINTON PROPOSAL OFF THE TABLE THE BEST RESPONSE TO HILLARY CLINTON'S IMPORTUNING IS THE ADVICE OF ANOTHER FIRST LADY JUST SAY NO SEE RELATED LETTERS LETTERS TO THE EDITOR STORM WARNINGS ON MEDICAL RESEARCH WSJ NOV 8 1993 SEE RELATED LETTER LETTERS TO THE EDITOR MEDICAL ALLIANCES' FEE SCHEDULE SIMPLIFIED WSJ NOV 26 1993 9310180055 9311080021 YY93 MM11 YY93 MM11 9311240186 931124 DIVIDEND NEWS GELMAN SCIENCES INC GELMAN SCIENCES INC DECLARED A 3FOR2 STOCK SPLIT TO BE DISTRIBUTED DEC 28 TO STOCK OF RECORD DEC 8 THE ANN ARBOR MICH MAKER OF MEDICAL EQUIPMENT PARTS HAS 26 MILLION SHARES OUTSTANDING 9311240185 931124 REVIEW & OUTLOOK EDITORIAL AND THE FAIR LAND ANYONE WHOSE LABORS TAKE HIM INTO THE FAR REACHES OF THE COUNTRY AS OURS LATELY HAVE DONE IS BOUND TO MARK HOW THE YEARS HAVE MADE THE LAND GROW FRUITFUL THIS IS INDEED A BIG COUNTRY A RICH COUNTRY IN A WAY NO ARRAY OF FIGURES CAN MEASURE AND SO IN A WAY PAST BELIEF OF THOSE WHO HAVE NOT SEEN IT EVEN THOSE WHO JOURNEY THROUGH ITS NORTHEASTERN COMPLEX INTO THE SOUTHERN LANDS ACROSS THE CENTRAL PLAINS AND TO ITS WESTERN SLOPES CAN ONLY GLIMPSE A MEASURE OF THE BOUNTY OF AMERICA AND A TRAVELER CANNOT BUT BE STRUCK ON HIS JOURNEY BY THE THOUGHT THAT THIS COUNTRY ONE DAY CAN BE EVEN GREATER AMERICA THOUGH MANY KNOW IT NOT IS ONE OF THE GREAT UNDERDEVELOPED COUNTRIES OF THE WORLD WHAT IT REACHES FOR EXCEEDS BY FAR WHAT IT HAS GRASPED SO THE VISITOR RETURNS THANKFUL FOR MUCH OF WHAT HE HAS SEEN AND IN SPITE OF EVERYTHING AN OPTIMIST ABOUT WHAT HIS COUNTRY MIGHT BE YET THE VISITOR IF HE IS TO MAKE AN HONEST REPORT MUST ALSO NOTE THE AIR OF UNEASE THAT HANGS EVERYWHERE FOR THE TRAVELER AS TRAVELERS HAVE BEEN ALWAYS IS AS MUCH QUESTIONED AS QUESTIONING AND FOR ALL THE ABUNDANCE HE SEES HE FINDS THE QUESTIONS PUT TO HIM ASK WHERE MEN MAY REPAIR FOR SUCCOR FROM THE TROUBLES THAT BESET THEM HIS COUNTRYMEN CANNOT FORGET THE SAVAGE FACE OF WAR TOO OFTEN THEY HAVE BEEN ASKED TO FIGHT IN STRANGE AND DISTANT PLACES FOR NO CLEAR PURPOSE THEY COULD SEE AND FOR NO ACCOMPLISHMENT THEY CAN MEASURE THEIR SPIRITS ARE NOT QUIETED BY THE THOUGHT THAT THE GOOD AND PLEASANT BOUNTY THAT SURROUNDS THEM CAN BE DESTROYED IN AN INSTANT BY A SINGLE BOMB YET THEY FIND NO ESCAPE FOR THEIR SURVIVAL AND COMFORT NOW DEPEND ON UNPREDICTABLE STRANGERS IN FAROFF CORNERS OF THE GLOBE HOW CAN THEY TURN FROM MELANCHOLY WHEN AT HOME THEY SEE YOUNG ARRAYED AGAINST OLD BLACK AGAINST WHITE NEIGHBOR AGAINST NEIGHBOR SO THAT THEY STAND IN PERIL OF SOCIAL DISCORD OR NOT DESPAIR WHEN THEY SEE THAT THE CITIES AND COUNTRYSIDE ARE IN NEED OF REPAIR YET FIND THEMSELVES THREATENED BY SCARCITIES OF THE RESOURCES THAT SUSTAIN THEIR WAY OF LIFE OR WHEN IN THE FACE OF THESE CHALLENGES THEY TURN FOR LEADERSHIP TO MEN IN HIGH PLACES ONLY TO FIND THOSE MEN AS FRAIL AS ANY OTHERS SO SOMETIMES THE TRAVELER IS ASKED WHENCE WILL COME THEIR SUCCOR WHAT IS TO PRESERVE THEIR ABUNDANCE OR EVEN THEIR CIVILITY HOW CAN THEY PASS ON TO THEIR CHILDREN A NATION AS STRONG AND FREE AS THE ONE THEY INHERITED FROM THEIR FOREFATHERS HOW IS THEIR COUNTRY TO ENDURE THESE CRUEL STORMS THAT BESET IT FROM WITHOUT AND FROM WITHIN OF COURSE THE STRANGER CANNOT QUIET THEIR SPIRITS FOR IT IS TRUE THAT EVERYWHERE MEN TURN THEIR EYES TODAY MUCH OF THE WORLD HAS A TRULY WILD AND SAVAGE HUE NO MAN IF HE BE TRUTHFUL CAN SAY THAT THE SPECTER OF WAR IS BANISHED NOR CAN HE SAY THAT WHEN MEN OR COMMUNITIES ARE PUT UPON THEIR OWN RESOURCES THEY ARE SURE OF SOLACE NOR BE SURE THAT MEN OF DIVERSE KINDS AND DIVERSE VIEWS CAN LIVE PEACEABLY TOGETHER IN A TIME OF TROUBLES BUT WE CAN ALL REMIND OURSELVES THAT THE RICHNESS OF THIS COUNTRY WAS NOT BORN IN THE RESOURCES OF THE EARTH THOUGH THEY BE PLENTIFUL BUT IN THE MEN THAT TOOK ITS MEASURE FOR THAT REMINDER IS EVERYWHERE IN THE CITIES TOWNS FARMS ROADS FACTORIES HOMES HOSPITALS SCHOOLS THAT SPREAD EVERYWHERE OVER THAT WILDERNESS WE CAN REMIND OURSELVES THAT FOR ALL OUR SOCIAL DISCORD WE YET REMAIN THE LONGEST ENDURING SOCIETY OF FREE MEN GOVERNING THEMSELVES WITHOUT BENEFIT OF KINGS OR DICTATORS BEING SO WE ARE THE MARVEL AND THE MYSTERY OF THE WORLD FOR THAT ENDURING LIBERTY IS NO LESS A BLESSING THAN THE ABUNDANCE OF THE EARTH AND WE MIGHT REMIND OURSELVES ALSO THAT IF THOSE MEN SETTING OUT FROM DELFTSHAVEN HAD BEEN DAUNTED BY THE TROUBLES THEY SAW AROUND THEM THEN WE COULD NOT THIS AUTUMN BE THANKFUL FOR A FAIR LAND THIS EDITORIAL HAS APPEARED ANNUALLY SINCE 1961 9311240184 931124 WHO'S NEWS NEW ENGLAND ELECTRIC SYSTEM NEW ENGLAND ELECTRIC SYSTEM WESTBOROUGH MASS CHARLES E SOULE WAS NAMED A DIRECTOR OF THE ELECTRIC UTILITY EXPANDING THE BOARD'S SIZE TO 13 MEMBERS MR SOULE IS PRESIDENT OF PAUL REVERE INSURANCE GROUP IN WORCESTER MASS 9311240183 931124 MARKETING & MEDIA RULES RESTRICTING INDECENCY ON TV ARE STRUCK DOWN WASHINGTON A FEDERAL APPEALS COURT STRUCK DOWN AS UNCONSTITUTIONAL A FEDERAL REGULATION BANNING INDECENT TELEVISION BROADCASTING BETWEEN 6 AM AND MIDNIGHT THE US COURT OF APPEALS HERE SAID THE REGULATION ADOPTED EARLIER THIS YEAR BY THE FEDERAL COMMUNICATIONS COMMISSION AT THE DIRECTION OF CONGRESS VIOLATED THE FIRST AMENDMENT GUARANTEE OF FREE SPEECH THE APPEALS COURT ALSO LABELED INVALID THE PART OF THE 1992 LAW THAT REQUIRED THE FCC TO ISSUE THE REGULATION THE RULING RELIED HEAVILY ON TWO PREVIOUS DECISIONS BY THE SAME COURT IN WHICH IT ADDRESSED SIMILAR FCC ATTEMPTS TO RESTRICT INDECENT BROADCASTING THE FCC'S GOAL OF PROTECTING CHILDREN FROM INDECENT MATERIAL IS LEGITIMATE A THREEJUDGE PANEL OF THE COURT SAID BUT THE AGENCY ACTING UNDER PRESSURE FROM CONGRESS IMPOSED RULES THAT WERE SO BROAD THAT THEY UNNECESSARILY BANNED SPEECH THAT IS PROTECTED UNDER THE FIRST AMENDMENT THE PANEL CONCLUDED IN A SEPARATE CASE THE THREEJUDGE PANEL ORDERED THE FCC TO RECONSIDER RESTRICTIONS ON INDECENT PROGRAMMING ON CABLE SYSTEMS' PUBLICACCESS CHANNELS AN OFFICIAL IN THE FCC'S LITIGATION DEPARTMENT SAID THE AGENCY WAS REVIEWING THE DECISION AND HAD NO IMMEDIATE COMMENT YESTERDAY'S RULING RAISES DOUBTS ABOUT PROPOSED LEGISLATION THAT WOULD MONITOR VIOLENT PROGRAMMING ONE BILL SPONSORED BY SENS ERNEST HOLLINGS D SC AND DANIEL INOUYE D HAWAII WOULD PROHIBIT THE DISTRIBUTION OF VIOLENT VIDEO PROGRAMMING DURING HOURS WHEN CHILDREN ARE REASONABLY LIKELY TO COMPRISE A SUBSTANTIAL PORTION OF THE AUDIENCE IT WOULD APPLY TO BOTH BROADCAST AND NONPREMIUM CHANNELS ON CABLE ATTORNEY GENERAL JANET RENO TESTIFIED BEFORE THE SENATE COMMERCE SCIENCE AND TRANSPORTATION COMMITTEE IN OCTOBER THAT THIS LEGISLATION WOULD PASS ALL CONSTITUTIONALITY TESTS 9311240182 931124 DIGITAL COMPUTER DEAL IN CHINA MAYNARD MASS DIGITAL EQUIPMENT CORP SAID IT AGREED WITH FOUNDER CORP GROUP OF CHINA TO SELL PERSONAL COMPUTERS AND POSSIBLY BUILD A COMPUTER FACTORY FOUNDER SAID IT EXPECTS TO SELL 75 MILLION OF DIGITAL COMPUTERS IN CHINA IN 1994 9311240181 931124 CROSS PURPOSES THE CATHOLIC CHURCH STRUGGLES WITH SUITS OVER SEXUAL ABUSE WHILE IT PLEDGES COMPASSION ITS LAWYERS PLAY ROUGH DEFENDING LAPSED PRIESTS SUING PARENTS FOR NEGLIGENCE BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN EDWARD MORRIS SUED THE PHILADELPHIA CATHOLIC ARCHDIOCESE ALLEGING EIGHT YEARS OF SEXUAL ABUSE BY HIS CHILDHOOD PRIEST LAWYERS FOR THE CHURCH HAD A SWIFT ANSWER THEY COUNTERSUED MR MORRIS'S PARENTS BLAMING THEM FOR FAILING TO DISCOVER THEIR SON'S RELATIONSHIP WITH AN ALLEGED CHILD ABUSER WHEN TIMOTHY D MARTINEZ SUED THE ARCHDIOCESE OF SANTA FE OVER ALLEGED ABUSE BY A CONVICTED PEDOPHILE PRIEST THERE CHURCH LAWYERS TOOK A SIMILAR TACK THEY SENT PRIVATE INVESTIGATORS SWARMING THROUGH MR MARTINEZ'S PAST ASKING FORMER FRIENDS IF HE WAS HOMOSEXUAL AND DURING A GRUELING DEPOSITION LAST YEAR WITH THE EXPRIEST SITTING SILENTLY ACROSS A CONFERENCE TABLE CHURCH LAWYERS NOT ONLY DEMANDED DETAILS OF MR MARTINEZ'S SEX LIFE BUT ALSO ASKED WHEN THE PRIEST TOUCHED YOU DID YOU ENJOY IT SAYS THE 30YEAROLD MR MARTINEZ I FELT THEY WERE TRYING TO WEAR ME DOWN LIKE THEY WERE GOING TO BREAK ME FOR PARISHIONERS CAUGHT UP IN A WEB OF SEXUAL ABUSE BY ROGUE PRIESTS US CATHOLIC CHURCH LEADERS HAVE AN UNEQUIVOCAL PUBLIC POSTURE IT'S LONG SINCE TIME TO GET ON OUR KNEES TO BEAT OUR BREASTS TO ASK GOD'S MERCY CARDINAL JOHN O'CONNOR OF NEW YORK SAID IN AN OPEN LETTER LAST JULY JUSTICE COMPASSION AND CHARITY COMPRISE THE FOUNDATION OF OUR POLICY YET MANY VICTIMS HAVE FOUND THIS PLEDGE STOPS AT THE COURTHOUSE DOOR WORRIED ABOUT CRIPPLING DAMAGE AWARDS AND THEIR EFFECT ON CHURCH PROGRAMS AND CONCERNED ABOUT FALSE ALLEGATIONS THE CHURCH HAS ADOPTED BRUISING BAREKNUCKLE TACTICS MORE COMMON TO CORPORATE DEFENSES IN HIGHSTAKES PERSONALINJURY SUITS THE CHURCH OF COURSE HAS EVERY RIGHT TO DEFEND ITSELF AND SOME WOULD ARGUE THAT HARDBALL TACTICS ARE JUSTIFIED OR AT LEAST UNDERSTANDABLE IN CASES OF UNPROVEN SEXUALABUSE ALLEGATIONS AND MANY OF THE DEFENDANTS WITH LAWYERS WORKING ON A CONTINGENTFEE BASIS ARE ASKING FOR TENS OF MILLIONS OF DOLLARS IN DAMAGES INCLUDING PUNITIVE DAMAGES BUT A CLOSE LOOK AT NUMEROUS SUITS BROUGHT BY ALLEGED VICTIMS SHOWS SCORCHEDEARTH DEFENSE TACTICS COMMON EVEN IN CASES WHERE THE PRIESTS HAVE BEEN CRIMINALLY CONVICTED THERE'S A DIFFERENCE BETWEEN EXERCISING LEGAL RIGHTS AND PREROGATIVES IN LAWSUITS AND INTENTIONALLY REVICTIMIZING VICTIMS BY REPUDIATIONS REBUKES AND ATTACKS SAYS JEFFREY ANDERSON A PLAINTIFF'S LAWYER IN ST PAUL MINN HE IS HANDLING MORE THAN 225 SUITS AGAINST PRIESTS ACCUSED OF MOLESTING CHILDREN THE HARDBALL ATTITUDE IS CLEAR IN A NUMBER OF CASES IN UPSTATE NEW YORK INVOLVING CARDINAL O'CONNOR'S OWN ARCHDIOCESE IN ONE THE REV EDWARD A PIPALA OF GOSHEN WAS ACCUSED BY NEW YORK STATE AUTHORITIES OF OPERATING A SECRET CLUB FOR 50 YOUNG BOYS AND TEENAGERS IDENTIFYING MEMBERS BY NUMBER AND TAKING THEM FOR SEASIDE EXCURSIONS TO NEW JERSEY AND CAPE COD TO DRINK WATCH XRATED MOVIES AND ENGAGE IN SEX HE PLEADED GUILTY LAST SUMMER IN STATE AND FEDERAL COURTS IN NEW YORK TO A VARIETY OF CHARGES INCLUDING SODOMY AND SEXUAL ABUSE BUT THE ARCHDIOCESE REPRESENTED BY A CRACK LITIGATION TEAM AT SIMPSON THACHER & BARTLETT ONE OF NEW YORK'S PREMIER CORPORATELAW FIRMS HAS DENIED ALL LIABILITY REJECTED SETTLEMENT DISCUSSIONS AND INUNDATED PLAINTIFFS' LAWYERS WITH FAXED DEMANDS FOR PRETRIAL INFORMATION AMONG THE REQUESTS A PRECISE DESCRIPTION OF WHAT THE CHILDREN DRANK AND WHERE OR WITH WHOM THEY WERE WHEN THEY DRANK IT THE ARCHDIOCESE IS RESPONDING AGGRESSIVELY TO ALLEGATIONS THAT THE REV DANIEL A CALABRESE OF POUGHKEEPSIE SODOMIZED A TEENAGE BOY IN A PARISH RECTORY LAST YEAR AFTER GETTING HIM DRUNK ON BEER AND VODKA FATHER CALABRESE PLEADED GUILTY TO CRIMINAL CHARGES OF SODOMY IN STATE COURT IN POUGHKEEPSIE IN RESPONSE TO A CIVIL SUIT FILED BY THE BOY'S FAMILY EARLIER THIS YEAR IN STATE COURT THERE THE ARCHDIOCESE IS BLAMING THE YOUTH SAYING HE WILLINGLY CONSENTED THE ARCHDIOCESE SAYS SUCH TACTICS ARE PAINFUL BUT NECESSARY TO SHIELD AGAINST HUGE DAMAGE AWARDS THAT COULD FORCE CUTBACKS IN CHARITABLE AND EDUCATIONAL SERVICES CARDINAL O'CONNOR IN HIS ROLE OF BISHOP OF HIS DIOCESE HAS A RESPONSIBILITY TO DEFEND IT ESPECIALLY IN LAWSUITS THAT MIGHT SEEK TO TEACH THE CHURCH A LESSON OR INJURE THE CHURCH SAYS HIS SPOKESMAN JOSEPH ZWILLING CHURCH OFFICIALS NATIONWIDE SHARE THIS VIEW AND ARE ACTING ACCORDINGLY ON THE ONE HAND THEY ARE EXPRESSING SYMPATHY FOR VICTIMS OFFERING COUNSELING AND OVERHAULING OUTDATED PROCEDURES FOR INVESTIGATING ABUSE RECENTLY FOR EXAMPLE THE NATIONAL CONFERENCE OF CATHOLIC BISHOPS SOUGHT VATICAN PERMISSION TO STRENGTHEN THE CHURCH'S HAND IN DEFROCKING PRIESTS WHO HAVE COMMITTED ABUSE AND EARLIER THE CONFERENCE BEGAN WORK ON A NATIONAL ACTION PLAN FOR INVESTIGATING ABUSE ALLEGATIONS AND REMOVING OFFENDERS YET CHURCH LEADERS SAY THEY CAN'T TURN THE OTHER CHEEK WHEN IT COMES TO DAMAGE SUITS JUST BECAUSE A LAWSUIT IS FILED IT DOESN'T MEAN THE CHURCH SHOULD OPEN UP A CHECKBOOK AND SAY TAKE WHAT YOU WANT' SAYS MARK CHOPKO GENERAL COUNSEL FOR THE CATHOLIC CONFERENCE THE ECCLESIASTICAL BODY FOR THE 188 INDEPENDENT US DIOCESES THOUGH THEY KEEP NO CENTRALIZED RECORDS CHURCH OFFICIALS ESTIMATE DAMAGE AWARDS AND SETTLEMENT PAYMENTS SO FAR HAVE TOPPED 60 MILLION OUTSIDERS PLACE THE AMOUNT MUCH HIGHER THE CHURCH ARGUES OF COURSE THAT ONE JUSTIFICATION OF A VIGOROUS DEFENSE IS THAT ACCUSATIONS MAY BE FALSE THAT'S THE POSITION THE CATHOLIC CONFERENCE TOOK AFTER CHICAGO'S CARDINAL JOSEPH BERNARDIN WAS NAMED IN A LAWSUIT TWO WEEKS AGO ACCUSING HIM OF SEXUAL ABUSE I BELIEVE HIM WHEN HE GOES BEFORE HIS PEOPLE AND THE WHOLE COUNTRY TO SAY HE IS INNOCENT SAID BISHOP JOHN F KINNEY OF NORTH DAKOTA CARDINAL BERNARDIN'S ARCHDIOCESE IS TAKING THE SAME POSITION IN TWO LAWSUITS ACCUSING ONE OF HIS PRIESTS THE REV ROBERT LUTZ OF SEXUALLY ABUSING TWO YOUNG BOYS FATHER LUTZ IS PASTOR OF A PAROCHIAL GRADE SCHOOL IN THE AFFLUENT CHICAGO SUBURB OF NORTHBROOK ILL THIS IS A JUSTICE ISSUE SAYS JOHN O'MALLEY GENERAL COUNSEL TO THE CHICAGO ARCHDIOCESE THE TRAGEDY HERE WOULD BE NOT TO DEFEND THIS MAN BECAUSE THE MEDIA AND A LOT OF PEOPLE HAVE DECIDED HE DID SOMETHING WRONG YET INCREASINGLY INSURANCE ISSUES ALSO PLAY A ROLE IN THE CHURCH'S ATTITUDE THE NATION'S CATHOLIC DIOCESES ALL CARRY GENERAL LIABILITY POLICIES AND NUMEROUS SEXUALABUSE PAYOUTS TO DATE HAVE COME FROM INSURERS MORE AND MORE HOWEVER INSURANCE CARRIERS ARE REFUSING TO DEFEND DIOCESES OR PROVIDE COVERAGE CONTENDING SEXUAL ABUSE IS AN INTENTIONAL ACT AND NOT INSURABLE UNDER GENERAL LIABILITY POLICIES THAT IS ESPECIALLY TRUE IN CASES WHERE DIOCESES WERE AWARE OF COMPLAINTS OF SEXUAL ABUSE BY PRIESTS BUT WITHHELD SUCH INFORMATION FROM INSURERS WE TAKE THE POSITION THAT YOU COULD HAVE EXPECTED THEY WERE GOING TO HARM ANOTHER CHILD SAYS RICHARD F JOHNSON A LAWYER FOR LLOYD'S OF LONDON IT IS ONE OF THE CARRIERS FOR THE ARCHDIOCESE OF SANTA FE WHICH HAS BEEN ROCKED BY A SLEW OF SEXUALABUSE LAWSUITS A DOZEN CARRIERS THERE HAVE SUED SEEKING TO VOID THEIR OBLIGATION TO DEFEND THE ARCHDIOCESE OR PAY DAMAGE CLAIMS IN 31 SEXUALABUSE COMPLAINTS INVOLVING 39 PLAINTIFFS NOW PENDING BEFORE NEW MEXICO COURTS AND EVEN IN CASES WHERE INSURANCE COMPANIES PROVIDE COVERAGE SOME HAVE BALKED AT SETTLEMENTS AND RESORTED TO COUNTERSUITS AND ATTACKS AGAINST PLAINTIFFS AS A WAY OF DEFEATING OR DISCOURAGING CLAIMS CHURCH OFFICIALS SOMETIMES CONTEND THEY HAVE LITTLE SAY IN HOW INSURANCECOMPANY LAWYERS CONDUCT SUCH LITIGATION AND POINT TO MR MORRIS'S CASE AS AN EXAMPLE IN HIS LAWSUIT FILED IN 1989 MR MORRIS CLAIMS THAT HIS FAMILY PRIEST THE REV TERRANCE PINKOWSKI ABUSED HIM OVER AN EIGHTYEAR SPAN A FRANCISCAN FRIAR FATHER PINKOWSKI WAS MR MORRIS'S HIGHSCHOOL RELIGION TEACHER AND SPIRITUAL GUIDE AT A TIME WHEN MR MORRIS WAS CONSIDERING BECOMING A PRIEST ACCORDING TO THE SUIT FILED IN THE COURT OF COMMON PLEAS IN PHILADELPHIA FATHER PINKOWSKI CONVINCED MR MORRIS THAT SEXUAL RELATIONS WERE A FORM OF THERAPY NECESSARY FOR HIS SPIRITUAL GROWTH IN PREPARATION FOR ORDINATION MR MORRIS NOW 31 YEARS OLD AND THE OWNER OF A PHILADELPHIA IMPORTEXPORT BUSINESS BROUGHT THE ALLEGATIONS LONG AFTER THE ALLEGED ABUSE THE CATALYST WAS HIS 1988 MARRIAGE AND THE FAMILY PRIEST'S CONSPICUOUS ABSENCE FROM THE GUEST LIST HIS PARENTS WANTED TO KNOW WHY THIS MAN WASN'T COMING TO MY WEDDING MR MORRIS SAYS AFTER MR MORRIS SUED HOWEVER THE CHURCH'S DEFENSE LAWYER HIRED BY THE INSURANCE CARRIER QUICKLY COUNTERSUED MR MORRIS'S PARENTS CLAIMING NEGLIGENCE ON THEIR PART THE TACTIC LEFT MR MORRIS IN SHOCK YOU GO TOWARD THEM AND YOU EXPECT COMPASSION AND UNDERSTANDING AND A DEGREE OF HEALING AND YOU'RE TREATED LIKE YOU'RE TAKING ON A FORTUNE 500 COMPANY HE SAYS WHILE CHURCH OFFICIALS SAY THEY PROTESTED THE STRATEGY BUT HAD NO CONTROL OVER IT THE LAWYER WHO HANDLED THE CASE DISPUTES THAT THE ARCHDIOCESE AS THE POLICYHOLDER WAS THE CLIENT FOR PROFESSIONAL AND ETHICAL PURPOSES AND RETAINED FINAL SAY ON STRATEGY SAYS LAWYER BRUCE MCCOLLOUGH NOBODY SECOND GUESSED IT MR MORRIS'S SUIT DRAGGED ON FOR FOUR YEARS AND WAS SETTLED OUT OF COURT LAST AUGUST UNDER A CONFIDENTIALITY AGREEMENT BARRING DISCLOSURE OF THE TERMS FATHER PINKOWSKI DIED TWO YEARS AGO MR MARTINEZ FOUND HE GOT SIMILAR TREATMENT IN SANTA FE THE NEW MEXICO ARCHDIOCESE HAS BECOME A MAGNET FOR SEXUALABUSE CLAIMS AGAINST CLERGY BECAUSE ONE OF THE FEW TREATMENT CENTERS FOR PEDOPHILE PRIESTS THE SERVANTS OF THE PERACLETE IS LOCATED IN NEARBY JEMEZ SPRINGS THOUGH AREA PARENTS WERE UNAWARE OF THE PRACTICE PRIESTS SENT THERE FOR TREATMENT WERE FREQUENTLY REASSIGNED TO LOCAL PARISHES AND ALLOWED UNSUPERVISED CONTACT WITH CHILDREN SOME ALLEGED VICTIMS MAINTAIN THAT THEIR COMPLAINTS TO FORMER SANTA FE ARCHBISHOP ROBERT SANCHEZ WENT UNHEEDED BECAUSE HE HIMSELF WAS ENGAGING IN SEXUAL MISCONDUCT LAST MARCH HE ABRUPTLY RESIGNED AFTER THREE WOMEN ACCUSED HIM OF HAVING SEXUAL RELATIONS WITH THEM WHEN THEY WERE TEENAGERS TWO WEEKS AGO THE SERVANTS OF THE PERACLETE WHICH IS INDEPENDENT OF THE ARCHDIOCESE AGREED TO PAY ABOUT 8 MILLION IN DAMAGES TO 25 VICTIMS OF A PRIEST IT TREATED AND RELEASED NOW FACING A POTENTIALLY HUGE UNINSURED LIABILITY THE ARCHDIOCESE IS LEANING ON ITS LAWYERS TO HOLD DOWN DAMAGE AWARDS WHILE MOUNTING A FURIOUS LEGAL BATTLE TO FORCE ITS INSURERS TO PAY LEGAL COSTS AND PROVIDE COVERAGE CAUGHT IN THE MIDDLE ARE PLAINTIFFS LIKE MR MARTINEZ AN ALBUQUERQUE ELECTRONICS TECHNICIAN FOR MARTIN MARIETTA CORP AND ONE OF 12 PEOPLE WHO CONTEND THEY WERE ABUSED AS CHILDREN AND TEENAGERS BY JASON SIGLER A FORMER PRIEST MR SIGLER ACCORDING TO STATECOURT PLEADINGS HAD BEEN REASSIGNED TO A SMALL PARISH NEAR ALBUQUERQUE AFTER TREATMENT FOR PEDOPHILIA AT THE SERVANTS OF THE PERACLETE THERE HE BEFRIENDED MR MARTINEZ AND HIS FAMILY AND COURT RECORDS SAY INITIATED AN EIGHTYEAR SEXUAL RELATIONSHIP WITH MR MARTINEZ WHO WAS 13 AT THE TIME A LOT OF PEOPLE HAVE A HARD TIME UNDERSTANDING WHAT AN AUTHORITY FIGURE A PRIEST IS SAYS MR MARTINEZ WHO CLAIMS THE ALLEGED ABUSE HAS LEFT HIM DEPRESSED AND WITH AN ABIDING HATRED FOR AUTHORITY MR SIGLER NO LONGER A PRIEST PLEADED GUILTY IN 1983 IN A STATE COURT IN ALBUQUERQUE TO SEXUAL MOLESTATION INVOLVING TWO MINORS THEY ALSO HAVE SUED HIM MR SIGLER HAS REFUSED TO TESTIFY IN HIS OWN DEFENSE CITING HIS FIFTH AMENDMENT GUARANTEE AGAINST SELFINCRIMINATION HE NOW WORKS AS A PARALEGAL FOR HIS LAWYER THE ARCHDIOCESE NONETHELESS IS PREPARING AN ALLOUT DEFENSE AIMED SQUARELY AT DISCREDITING MR MARTINEZ PRIVATE INVESTIGATORS HAVE GONE TO GREAT LENGTHS TO DELVE INTO HIS PERSONAL LIFE TRACKING DOWN HIS COLLEGE ROOMMATES FORMER GIRLFRIENDS AND EVEN THE JANITOR OF THE CHURCH HE ATTENDED IN ALBUQUERQUE AS A YOUTH ARCHDIOCESE LAWYERS SAY THEY NEED SUCH INFORMATION TO ESTIMATE LIABILITY AND DAMAGES NOTING THE LOCAL CHURCH'S TREASURY ISN'T BOTTOMLESS EVERYONE WANTS THE DIOCESE TO ROLL OVER AND PLAY DEAD WE GET HAMMERED AND GET KICKED IN THE TEETH AND IT'S NOT GOING TO BE THAT WAY ANY MORE SAYS THE REV RON WOLF CHANCELLOR OF THE ARCHDIOCESE CHURCH LAWYERS BLAME PLAINTIFFS' LAWYERS FOR TRYING THEIR CASES IN THE PRESS AND MAKING UNREASONABLE SETTLEMENT DEMANDS ON MONDAY AN OFFER BY MR MARTINEZ TO SETTLE FOR 125 MILLION WAS REJECTED STILL SOME CAN'T GET PAST THE IRONY OF THE CHURCH'S IRONFISTED RESPONSE TO SUCH LAWSUITS CARDINAL BERNARDIN'S CHICAGO ARCHDIOCESE IS CREDITED WITH DEVELOPING THE NATION'S STRONGEST PROGRAM FOR INVESTIGATING ABUSE AND REMOVING PROBLEM PRIESTS AND PROVIDING COUNSELING TO VICTIMS THIS NONETHELESS HASN'T STOPPED THE ARCHDIOCESE FROM WAGING LEGAL WAR AGAINST THOSE WHO HAVE FILED SUIT IN COOK COUNTY CIRCUIT COURT AGAINST FATHER LUTZ THE CHURCH HAS FINANCED A COUNTERSUIT ALLEGING INVASION OF PRIVACY AND DEFAMATION AGAINST THE PARENTS OF ONE PLAINTIFF THE PARENTS TOOK THEIR CASE TO THE MEDIA AFTER STATE PROSECUTORS DECLINED TO PRESS CRIMINAL CHARGES AGAINST FATHER LUTZ PRIVATE DETECTIVES HIRED BY THE CHICAGO LAW FIRM SIDLEY & AUSTIN HAVE SIFTED THROUGH THE FAMILY'S TRASH STAKED OUT THEIR HOME AND TELEPHONED NEIGHBORS IN SEARCH OF INCRIMINATING INFORMATION AT LEAST IN THIS CASE HIGHPOWERED LAWYERING HAS RAISED SOME POTENTIALLY VALID DEFENSE POINTS ACCORDING TO DEPOSITIONS IN THE CASE THE ACCUSER HAS A HISTORY OF FABRICATING STORIES AND RECANTED HIS ACCUSATIONS WHEN QUESTIONED BY A FAMILY PSYCHOLOGIST WHATEVER THEIR MERITS COUNTERATTACKS DO OFTEN WORK CONSIDER THE FOURYEAR BATTLE WAGED BY THE ARCHDIOCESE OF ALTOONAJOHNSTOWN IN WESTERN PENNSYLVANIA AGAINST A LAWSUIT BROUGHT BY A FORMER CHURCH MEMBER NOW IN HIS 20S THE PLAINTIFF ALLEGED THAT BEGINNING AT AGE NINE HE WAS SEXUALLY ABUSED FOR SEVEN YEARS BY THE REV FRANCIS E LUDDY THE FAMILY'S PRIEST AND HIS GODFATHER FATHER LUDDY HAS ADMITTED TO COMMITTING SEXUAL ACTS WITH THE PLAINTIFF'S OLDER BROTHER ACCORDING TO RECORDS IN A SEPARATE SUIT THOSE RECORDS ARE NOW UNDER COURT SEAL THOUGH THEY WERE BRIEFLY MADE PUBLIC SINCE 1987 THE PRIEST HAS BEEN UNDER TREATMENT AT SERVANTS OF THE PERACLETE BUT IN RESPONSE TO THE SUIT THE ALTOONAJOHNSTOWN DIOCESE DENIED THAT ANY ABUSE HAD OCCURRED AND ARGUED THAT IF ANY DID THE CHURCH WASN'T LEGALLY AT FAULT AMONG THE DEFENSES IF SEX DID TAKE PLACE THE PLAINTIFF CONSENTED TO IT AND WAS THUS CONTRIBUTORILY NEGLIGENT IN THE INTERIM LAWYERS FOR THE DIOCESE FOUGHT A LENGTHY BATTLE TO KEEP COURT PROCEEDINGS CLOSED WHILE STALLING EFFORTS BY THE PLAINTIFFS TO GAIN ACCESS TO FATHER LUDDY'S PERSONNEL FILE THE ISSUE WAS STILL PENDING IN AUGUST 1992 WHEN THE PLAINTIFF WHOSE NAME HAS NEVER BEEN PUBLICIZED GAVE UP AND DROPPED HIS CLAIM THE DIOCESE DECLINES COMMENT CITING A GAG ORDER ON THE STILLPENDING CASE AGAINST FATHER LUDDY FILED BY THE PLAINTIFF'S BROTHER SAYS THE MAN'S LAWYER RICHARD SERBIN OF ALTOONA HE WAS AT A POINT WHERE HE HAD JUST HAD ENOUGH FOR THE REV ANDREW M GREELEY A CATHOLIC PRIEST AND POPULAR CHICAGO NOVELIST WHO HAS BEEN IN THE FOREFRONT OF VICTIMS'RIGHTS EFFORTS SUCH CASES UNDERMINE THE CREDIBILITY OF THE CHURCH'S REFORM EFFORTS IF THE CHURCH WINS HE SAYS OTHER VICTIMS WILL BE DISCOURAGED FROM COMING FORWARD THEY'LL BEAT YOU INTO THE GROUND WITH THEIR MONEY FATHER GREELEY SAYS BUT EVEN IF THE CHURCH WINS IT LOSES 9311240180 931124 FINANCING BUSINESS WHEELINGPITTSBURGH CORP WHEELINGPITTSBURGH CORP NEW YORK SAID IT PRICED A 325 MILLION OFFERING OF 9 3/8 SENIOR NOTES DUE NOV 15 2003 MANAGED BY MERRILL LYNCH & CO AND CITICORP SECURITIES INC NET PROCEEDS WILL BE UTILITIZED TO FUND THE STEELMAKER'S RECENTLY COMPLETED TENDER OFFER FOR WPC'S 12 1/4 FIRST MORTGAGE NOTES AND FOR GENERAL CORPORATE PURPOSES INCLUDING WORKING CAPITAL CAPITAL EXPENDITURES AND POTENTIAL ACQUISITIONS 9311240179 931124 INTERNATIONAL ITALY'S CIAMPI CALLS EMERGENCY MEETING AS POLARIZED VOTE SPARKS MARKET CHAOS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN PRIME MINISTER CARLO CIAMPI TRIED TO RESTORE CALM TO ITALY'S FINANCIAL MARKETS YESTERDAY AS INTERNATIONAL INVESTORS PUMMELED THE LIRA TO RECORD LOWS PUNISHED THE STOCK MARKET AND WARNED OF IMMINENT POLITICAL CHAOS IN THE WAKE OF SUNDAY'S ELECTION RESULTS MR CIAMPI CALLED AN EMERGENCY MEETING FOR TODAY ON THE CRUCIAL 1994 BUDGET AND REASSURED MARKETS THAT NEW ELECTIONS WILL BE SCHEDULED ONCE THE BUDGET IS PASSED SUNDAY'S LOCAL ELECTIONS WIDELY SEEN AS A PREVIEW FOR COMING NATIONAL ELECTIONS POLARIZED THE COUNTRY INTO UNTESTED POLITICAL CAMPS OF LEFT AND RIGHT FOR THE FIRST TIME IN POSTWORLD WAR II HISTORY THE GOVERNING COALITION WAS LEFT WITH ONLY 15 OR SO OF POPULAR SUPPORT MOVING SOME OBSERVERS TO QUESTION WHETHER THE COUNTRY'S PEACEFUL REVOLUTION THE PAINFUL TWOYEAR OVERHAUL OF ITS ENTIRE POLITICAL AND ECONOMIC SYSTEM WOULD CAREER OFF THE TRACK MARKET SENTIMENT IN THE PAST TWO DAYS HAS SEEMED TO ECHO THAT OF PAUL SAMUELSON A NOBEL PRIZE WINNER FOR ECONOMICS WHO TOLD ITALIAN STATE RADIO ON ONE SIDE THERE IS A CRAZY AND IGNORANT RIGHTWING PARTY AND ON THE OTHER A CLASSBASED LEFT IN HISTORY I DON'T THINK SUCH A SITUATION EVER PRODUCED POSITIVE ECONOMIC RESULTS AT ONE POINT YESTERDAY THE LIRA HIT A RECORD LOW AGAINST THE FRENCH FRANC AT 346 FRANCS TO 1000 LIRE THE ITALIAN CURRENCY SLID TO 1705 LIRE TO THE DOLLAR AN EIGHTYEAR LOW MEANWHILE THE MILAN STOCKMARKET INDEX FELL 26 YESTERDAY ON TOP OF A 32 FALL MONDAY ITALY HAS ALWAYS BEEN GOVERNED BY THE CENTER SAID CHRIS MOORE ITALY ANALYST FOR MORGAN STANLEY IN MILAN THE PARTIES WHO WON HAVE NO TRACK RECORD AND THE MARKETS FEAR WHAT WILL HAPPEN IN NATIONAL ELECTIONS THERE IS IN FACT PLENTY OF UNCERTAINTY WHILE THE DEFEATED CHRISTIAN DEMOCRATS DENIED MARKET RUMORS THAT THEY MIGHT PULL OUT OF THE GOVERNMENT THEY REMAINED NONCOMMITAL ON PASSAGE OF THE POLITICALLY UNPOPULAR BUDGET ANALYSTS WORRY THAT THE AUSTERITY BUDGET'S FAILURE TO PASS OR AN ACTUAL CHRISTIAN DEMOCRAT PULLOUT COULD FORCE NEW ELECTIONS BEFORE CRITICAL ELECTORALREFORM LAWS ARE COMPLETED ON THE BRIGHT SIDE SOME ANALYSTS WERE CAUTIOUSLY OPTIMISTIC ABOUT THE LONGTERM IMPLICATIONS OF SUNDAY'S VOTE NOT ONLY DID ITALIANS OVERWHELMINGLY SHUT OUT THE PARTIES ACCUSED OF WIDESPREAD CORRUPTION BUT THE COUNTRY MOVED A STEP CLOSER TOWARD THE EMBRYONIC STAGES OF A TWOPARTY SYSTEM AFTER A HALFCENTURY OF FRAGMENTED AND UNSTABLE COALITIONS THE EXISTENCE OF TWO POLITICAL BLOCS RIGHT AND LEFT WOULD PROVIDE ITALY WITH THE CHECKS AND BALANCES OF ALTERNATING GOVERNMENTS A SETUP THAT CHARACTERIZES MOST MODERN DEMOCRACIES IF ITALY CAN WEATHER ITS LATEST POLITICAL STORM MANY ANALYSTS SAY ITS TRANSITION TO A NEW POLITICAL ORDER WILL REMAIN ON TRACK SUNDAY'S MUNICIPAL POLL BORE OUT A NEARTOTAL COLLAPSE OF THE SCANDALTAINTED CHRISTIAN DEMOCRAT COALITION PARTIES THAT HAVE GOVERNED ITALY FOR MORE THAN 45 YEARS IN THEIR PLACE EMERGED A MOTLEY TRIUMVIRATE OF UNTESTED PARTIES THE EXCOMMUNIST DEMOCRATIC PARTY OF THE LEFT OR PDS WHICH WON THROUGHOUT ITALY THE NEOFASCIST ITALIAN SOCIAL MOVEMENT MSI WHICH GAINED IN THE SOUTH AND THE POPULIST NORTHERN LEAGUE WHICH MADE STRONG SHOWINGS IN THE NORTH I THINK THE MARKETS ARE OVERREACTING SAID GIORGIO RADAELLI INTERNATIONAL ECONOMIST WITH LEHMAN BROTHERS INC IN LONDON TO THEM ANYTHING LEFTOFCENTER IS THE BOGEYMAN BUT IN FACT THE PDS ISN'T ON THE EXTREME LEFT IT'S CONSIDERED CENTERLEFT WHAT'S MORE I THINK THAT IF THE CHRISTIAN DEMOCRATS HAD WON THE MARKETS' REACTION WOULD'VE BEEN FAR WORSE INDEED THE PDS PLATFORM IS IN MANY WAYS MODERATE CALLING FOR A CONTINUATION OF THE COUNTRY'S AMBITIOUS PRIVATIZATION PROGRAM AS WELL AS REDUCTION OF THE BUDGET DEFICIT PARTY LEADERS STEPPED FORWARD YESTERDAY TO EMPHASIZE THAT THE PDS RECOGNIZES THE IMPORTANCE OF PASSING THE GOVERNMENT'S 1994 AUSTERITY BUDGET HOWEVER IN CONTRAST TO CONSERVATIVE PARTIES AND BUSINESS LEADERS THE LABORSUPPORTED PDS FAVORS A FOURDAY WORKWEEK IN RESPONSE TO ITALY'S GROWING UNEMPLOYMENT PROBLEM RECENTLY IT ALSO PROPOSED A WEALTH TAX AS A MEANS TO GENERATE REVENUE DURING THE COUNTRY'S RECESSION 9311240178 931124 WHO'S NEWS JLG INDUSTRIES INC JLG INDUSTRIES INC MCCONNELLSBURG PA L DAVID BLACK PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF SPECIALIZED HYDRAULIC MACHINERY WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR BLACK 56 YEARS OLD HAS SERVED AS ACTING CHAIRMAN SINCE LATE APRIL WHEN THE COMPANY'S BOARD FIRED ITS FORMER CHAIRMAN AND COFOUNDER JOHN L GROVE AFTER HE ATTEMPTED TO OUST A MAJORITY OF JLG'S BOARD 9311240177 931124 REVIEW & OUTLOOK EDITORIAL NATIVISM AND THANKSGIVING ON THE DAY BEFORE THANKSGIVING WE HAVE MADE IT A HABIT IN RECENT YEARS TO DEVOTE THIS BRIEF SPACE TO THE SUBJECT OF IMMIGRANTS INSIDE THE UNITED STATES OFTEN THOSE EDITORIALS HAVE CONVEYED A TONE OF HOPEFULNESS NOTING HOW GREAT ARE THE PRESSURES BROUGHT TO BEAR ON STABLE COMMUNITIES HERE AND ELSEWHERE BY LARGE MOVEMENTS OF DESPERATE PEOPLE TWO YEARS AGO AT THIS TIME THE NEWS WAS ABOUT VIETNAMESE BOAT PEOPLE TRAPPED IN CAMPS IN HONG KONG THE US LATER STRUGGLED WITH BOAT PEOPLE FROM HAITI GERMANY NOW CONTENDS WITH YOUNG TOUGHS WHO FIREBOMB APARTMENTS WHERE TURKISH WORKERS LIVE BOSNIA SPEAKS FOR ITSELF THE DEGREE OF CONFLICT BRED BY THESE TENSIONS MAY VARY BY PLACE AND CIRCUMSTANCE BUT THEIR COMMON FEATURE IS THEIR INEVITABILITY IN AN ERA OF MASS COMMUNICATIONS WE EXPERIENCE MASS MOVEMENTS OF HUMANITY AMID THIS TURMOIL THE UNITED STATES LIKE IT OR NOT STANDS AS A BELLWETHER OF RESPONSE BY NATIVE RESIDENTS ALREADY SETTLED IN THEIR COMMUNITIES WE ARE THE COUNTRY WITH THE STATUE OF LIBERTY AND ITS FAMOUS WORDS WE ARE THE COUNTRY WITH THE GRAND HISTORIC EXPERIENCE OF IMMIGRATION AND INTEGRATION WE ARE THE COUNTRY THAT IN ITS POPULAR MYTHOLOGY PROFESSES TO HAVE DRAWN STRENGTH AND SUCCESS FROM ITS MYRIAD PEOPLES THE SURNAMES AND FACES IN OUR ARMY PLATOONS REFLECT THE REALITY AGAINST THIS HERITAGE THE WORLD WONDERS WHETHER THE UNITED STATES CAN STILL SUSTAIN ITS TRADITION OF TOLERANCE AND ABSORPTION AS ITS BORDERS COME UNDER PRESSURE FROM STRANGERS OUR ANSWER IS YES IT WILL AND THIS YEAR IT SEEMS APPROPRIATE TO END ON A NOTE THAT EXTENDS BEYOND HOPEFULNESS TO CONFIRMATION FOR IN THEIR COLLECTIVE DECISION ON NAFTA THE FREETRADE AGREEMENT WITH MEXICO AND CANADA ANOTHER NATION OF DIVERSE IMMIGRANTS THE AMERICAN PEOPLE SENT AN IMPORTANT SIGNAL TO THE WORLD THAT SIGNAL WHILE ACKNOWLEDGING THE TENSIONS OF NEW IMMIGRANT WAVES CLEARLY REPUDIATED THE KNELL OF NATIVISM THE VOTE WASN'T A POPULAR REFERENDUM BUT IN THE AGREEMENT'S PUBLIC AIRING OVER MANY WEEKS IT WAS CLEAR THAT ITS OPPONENTS BANKED ON SUSPICIONS OF PEOPLE AND THINGS FOREIGN THAT STRAND OF THEIR STRATEGY NEVER TOOK AMERICANS MAY DISAGREE ABOUT PARTICULARS BUT THEY SEEM AGREED THAT THEIR SUCCESS STILL DEPENDS ON A TRADITION OF OPENNESS TO NEW IDEAS AND TO NEW PEOPLE 9311240176 931124 WHO'S NEWS DOUGLAS & LOMASON CO DOUGLAS & LOMASON CO FARMINGTON HILLS MICH JAMES E GEORGE WAS ELECTED A DIRECTOR OF THIS SUPPLIER OF AUTOMOTIVE PARTS INCREASING BOARD MEMBERSHIP TO SEVEN MR GEORGE 65 YEARS OLD RECENTLY RETIRED AS VICE PRESIDENT OF BECTON DICKINSON & CO AN INTERNATIONAL MANUFACTURER OF SURGICAL AND MEDICAL INSTRUMENTS MR GEORGE HAS STARTED A MANUFACTURING CONSULTING COMPANY 9311240175 931124 INTERNATIONAL RUSSIA'S CENTRAL BANKER THE WRONG MAN GERASHCHENKO HOLDS ON TO POST DESPITE HIS OLDLINE VIEWS BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW WHEN RUSSIAN PRESIDENT BORIS YELTSIN DISSOLVED SACKED AND SHELLED THE SOVIETINSTALLED PARLIAMENT TWO MONTHS AGO THE MAIN POINT WAS SUPPOSED TO BE TO GIVE ECONOMIC REFORM A CHANCE THEN WHY IS SOVIETERA CENTRAL PLANNER VIKTOR GERASHCHENKO STILL HEAD OF THE CENTRAL BANK MR GERASHCHENKO HAS NEVER RANKED AMONG RUSSIA'S REFORMERS NOR HAS HE CHANGED HIS INFLATIONARY CENTRALPLANNING STYLE MUCH SINCE MR YELTSIN WIPED OUT THE CENTRAL BANK'S FORMER PATRON INSTITUTION AND CHIEF CLIENT THE PARLIAMENT HARVARD ECONOMIST JEFFREY SACHS AN ADVISER TO THE RUSSIAN GOVERNMENT WHO EARLIER THIS YEAR DESCRIBED MR GERASHCHENKO AS THE WORST CENTRAL BANK GOVERNOR IN HISTORY NOW MODIFIES THAT OPINION ONLY SLIGHTLY PERHAPS HE'S RIVALED BY THE GERMAN CENTRAL BANK GOVERNOR DURING THE HYPERINFLATION PERIOD MR SACHS SAYS A FORMER CHAIRMAN OF THE SOVIET UNION'S GOSBANK MR GERASHCHENKO SCORNS MARKET REFORMS UNTIL SEPTEMBER HE HAD COMPLIED HAPPILY WITH PARLIAMENT'S DEMANDS TO FLOOD OLD SOVIET ENTERPRISES WITH SUBSIDIZED CREDITS AND AS A RESULT PRESIDED OVER QUADRUPLEDIGIT YEARLY INFLATION AND A 500 DROP IN THE RUBLE'S VALUE AGAINST THE DOLLAR SINCE HE TOOK CHARGE IN JULY 1992 OUSTING MR GERASHCHENKO SEEMED PART OF MR YELTSIN'S PLAN SEPT 21 WHEN ALONG WITH DISSOLVING PARLIAMENT HE DECREED THAT THE PRESIDENT'S OFFICE WAS THE NEW BOSS OF THE CENTRAL BANK BUT A DAY LATER MR YELTSIN REAPPOINTED MR GERASHCHENKO THIS MOVE WAS WIDELY VIEWED AT THE TIME NOT AS A VOTE OF CONFIDENCE IN MR GERASHCHENKO BUT AS MR YELTSIN'S LAYING THE GROUNDWORK FOR THE NEXT STEP FIRING HIM I AND SOME OTHER PEOPLE WERE WAITING FOR SUCH PROCEDURE FOR THE CENTRAL BANK SAYS ECONOMIST ANDREI ILLARIONOV FIRST DEPUTY DIRECTOR OF THE GOVERNMENT'S CENTER FOR ECONOMIC REFORM ACCORDING TO A NUMBER OF ANALYSTS CLOSE TO THE GOVERNMENT MR YELTSIN WAS INDEED ON THE VERGE OF SACKING MR GERASHCHENKO LAST MONTH MR GERASHCHENKO HIMSELF NOTED AT A NEWS CONFERENCE NOV 3 THAT I CANNOT RULE OUT THE POSSIBILITY THAT I COULD BE DISMISSED EVEN PRIOR TO THE ELECTIONS FOR THE NEW PARLIAMENT BUT THEN THESE SAME ANALYSTS SAY PRIME MINISTER VIKTOR CHERNOMYRDIN TALKED THE PRESIDENT INTO KEEPING MR GERASHCHENKO AROUND AT LEAST UNTIL AFTER THE PARLIAMENTARY ELECTIONS AND THE CONSTITUTIONAL REFERENDUM BOTH SET FOR DEC 12 THAT GERASHCHENKO WAS HELD ON CAME AS A SHOCK TO MANY REFORMERS IN GOVERNMENT SAYS ANDERS ASLUND A SWEDISH CONSULTANT TO MR YELTSIN'S ADMINISTRATION THE PRECISE REASONS THAT MR YELTSIN APPARENTLY CHANGED HIS MIND ABOUT MR GERASHCHENKO REMAIN OPAQUE OBSERVERS OFFER A HANDFUL OF THEORIES ONE COMMON VERSION HAS IT THAT MR GERASHCHENKO AND PRIME MINISTER CHERNOMYRDIN ARE SIMPLY OLD SOVIETTECHNOCRAT BIRDS OF A FEATHER FLOCKING TOGETHER TO PRESERVE A COMMAND ECONOMY WHERE POSSIBLE BY THIS THEORY MR YELTSIN IS SIMPLY DISPLAYING HIS USUAL HESITATION WHEN NO IMMEDIATE CRISIS THREATENS CHOOSING NOT TO GO TO THE MAT WITH HIS OWN PRIME MINISTER OVER MR GERASHCHENKO ANOTHER THEORY POINTS TO THE GOVERNMENT'S STRENGTHENED CONTROL OVER CENTRAL BANK POLICY AS A REASON WHY IT'S NOT NECESSARY RIGHT NOW TO FIRE MR GERASHCHENKO BACK IN MAY THE RUSSIAN GOVERNMENT SET UP A CREDIT POLICY COMMITTEE TO MONITOR CREDIT DISBURSEMENTS BY THE CENTRAL BANK ALONG WITH CENTRAL BANK BOARD MEMBERS THIS COMMITTEE INCLUDES THE PROMARKET FINANCE MINISTER BORIS FYODOROV MR FYODOROV HAS BEEN THE CHIEF VOICE IN RUSSIA'S GOVERNMENT FOR TIGHTER MONEY AND GREATER RELIANCE ON MARKET MECHANISMS TO ALLOCATE CREDIT SINCE MAY THE CREDIT POLICY PANEL HAS RATCHETED UP THE CENTRAL BANK'S ABSURDLY CHEAP LENDING RATES TO ABOUT 600 WHICH IN AN ECONOMY SUFFERING 1993 INFLATION OF JUST OVER 1000 IS STILL A GIVEAWAY RATE BUT IS AT LEAST CLOSER TO MARKET VALUE THAN IT USED TO BE AND IT IS MR FYODOROV'S FINANCE MINISTRY ALONG WITH PRIME MINISTER CHERNOMYRDIN'S OFFICE THAT NOW GETS THE FINAL SAY OVER WHERE CENTRAL BANK LENDING GOES MR FYODOROV WHO HAS VOLUNTEERED HIMSELF AS A CANDIDATE FOR CENTRAL BANK CHAIRMAN SAYS THAT ANY RECENT IMPROVEMENTS IN THE CENTRAL BANK'S LENDING POLICY ARE DUE NOT TO A CHANGE IN MR GERASHCHENKO'S IDEAS BUT TO PRESSURE FROM THE REST OF THE GOVERNMENT SHOULD MR YELTSIN'S NEW CONSTITUTION PASS NEXT MONTH GOVERNMENT PRESSURE WILL MATTER LESS THE CENTRAL BANK WILL BY LAW BECOME AN INDEPENDENT INSTITUTION LIKE THE US FEDERAL RESERVE BOARD CHARGED WITH A CENTRAL BANK'S NORMAL TASK OF STABILIZING THE NATION'S CURRENCY SO IT WILL MATTER EVEN MORE WHO RUNS THE BANK MR YELTSIN WOULD HAVE THE POWER TO RECOMMEND THE FIRING OR HIRING OF THE CENTRAL BANK'S CHAIRMAN BUT WOULD THEN NEED THE APPROVAL OF THE LOWER HOUSE OF THE NEW PARLIAMENT BY ANOTHER ACCOUNT SUPPLIED BY A YELTSIN AIDE MR GERASHCHENKO SINCE SEPT 21 HAS SHOWN LOYALTY TO HIS NEW BOSS MR YELTSIN AND MR YELTSIN IS RETURNING THE FAVOR BUT IT'S A FRAGILE LOYALTY ON MR GERASHCHENKO'S SIDE THE DAY AFTER MR YELTSIN DISSOLVED PARLIAMENT AND TOOK OVER THE CENTRAL BANK THE BANK WENT AHEAD WITH THE ISSUE OF 600 MILLION RUBLES IN CASH TO THE OUTLAWED PARLIAMENT MORE RECENTLY MR GERASHCHENKO BEGAN CONCOCTING A PLAN THAT WOULD HAVE EXHUMED THE POLICY OF TRANSFERRING HUGE SUBSIDIES FROM RUSSIA TO SOME OTHER FORMER SOVIET STATES THE ADVANTAGE TO MR GERASHCHENKO WOULD HAVE BEEN THAT THESE STATES COULD HAVE USED SOME OF THESE SUBSIDIES TO BUY GOODS FROM THE RUSSIAN ENTERPRISES THAT HE HAS ALWAYS FAVORED SUBSIDIZING THIS SCHEME WAS BLOCKED THIS MONTH BY DEPUTY PRIME MINISTER ALEXANDER SHOKHIN A FINAL THEORY HAZARDED BY SOME IS THAT MR GERASHCHENKO OVERSEEING A CENTRAL BANK NOTORIOUS FOR ITS SECRECY AND FOR MYSTERIOUSLY MISSING SUMS OF MONEY MIGHT KNOW ENOUGH SECRETS TO BE ABLE TO BLACKMAIL GOVERNMENT OFFICIALS INTO KEEPING HIM IN HIS POST BUT NO EVIDENCE TO SUPPORT THIS THEORY HAS EMERGED WHAT IS CERTAIN IS THAT THE LOW LEVEL OF COMPETENCE INSIDE THE CENTRAL BANK HAS SAGGED EVEN LOWER MR GERASHCHENKO FIRED ONE OF THE TWO PROREFORM DEPUTY CHAIRMEN ON THE BANK'S EIGHTMEMBER BOARD SERGEI IGNATIEV MR IGNATIEV HAD RUN THE DOMESTIC CREDIT DIVISION ONE WESTERN ECONOMIC ANALYST SAYS MY UNDERSTANDING IS THAT HE WAS SACKED BECAUSE HE WAS NOT CORRUPT A RETIRED US BANKER BILL MCANDREW WHO HAS BEEN WORKING FOR THE RUSSIANAMERICAN BANKERS FORUM SINCE 1992 TRYING TO INTRODUCE NORMAL CHECKING ACCOUNTS IN RUSSIA ADDS THAT AT LOWER LEVELS THE BEST PEOPLE HAVE BEEN DEFECTING FROM THE CENTRAL BANK IT'S LIKE ALL THE TALENT HAS BEEN POACHED BY COMMERCIAL BANKS AND WE'RE DEALING AT A MUCH LOWER LEVEL OF COMPETENCE HE SAYS BACK IN JULY MR MCANDREW SUBMITTED A SET OF PROPOSED SPECIFICATIONS FOR RUSSIAN COMMERCIAL BANK CHECKS TO THE CENTRAL BANK WE'RE STILL WAITING TO HEAR HE SAYS SHOULD MR YELTSIN KEEP MR GERASHCHENKO ON INTO 1994 ONE THING MOST ANALYSTS PREDICT IS THAT INFLATION WILL CONTINUE TO HANDICAP RUSSIA'S REFORMS I AM ABSOLUTELY CERTAIN SAYS MR ILLARIONOV THAT IF MR GERASHCHENKO STAYS WE SHALL SEE INFLATION AT LEAST MAYBE HYPERINFLATION 9311240174 931124 FINANCING BUSINESS PROPERTY TRUST OF AMERICA PROPERTY TRUST OF AMERICA EL PASO TEXAS SAID IT WILL OFFER EIGHT MILLION CONVERTIBLE SERIES A PREFERRED SHARES PRICED AT 25 TO YIELD 7 THE REAL ESTATE FIRM WILL USE PROCEEDS OF THE 200 MILLION OFFERING TO REPAY BANK DEBT AND TO INVEST IN ADDITIONAL APARTMENT PROPERTIES THE SHARES ARE NONREDEEMABLE FOR 10 YEARS AND MAY BE CONVERTED TO COMMON AT ANY TIME THE SHARES HAVE BEEN RATED TRIPLEBPLUS BY STANDARD & POORS CORP AND BAA3 BY MOODY'S INVESTORS SERVICE INC UNDERWRITERS INCLUDE GOLDMAN SACHS & CO AG EDWARDS & SONS INC AND KIDDER PEABODY & CO INC 9311240173 931124 WHO'S NEWS ANALYTICAL SURVEYS INC ANALYTICAL SURVEYS INC COLORADO SPRINGS COLO SIDNEY V CORDER 51 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER BECOMES CHIEF EXECUTIVE OFFICER AND PRESIDENT JOHN A THORPE 59 FORMERLY CHAIRMAN AND CEO WILL SERVE AS BOTH CHAIRMAN AND CHIEF TECHNICAL OFFICER OF THIS MAPPING AND GEOGRAPHIC INFORMATION COMPANY MR CORDER WILL REMAIN IN CHARGE OF OPERATIONS BUT WILL DROP THE TITLE OF CHIEF OPERATING OFFICER 9311240172 931124 WHO'S NEWS STUARTS DEPARTMENT STORES INC STUARTS DEPARTMENT STORES INC FRANKLIN MASS DENIS T LEMIRE A 46YEAROLD SENIOR VICE PRESIDENT OF MERCHANDISING WAS NAMED PRESIDENT S JOSEPH HOFFMAN 73 WHO WAS ACTING CHAIRMAN AND PRESIDENT WAS NAMED CHAIRMAN THE ACTIONS FOLLOW THE RESIGNATION THIS YEAR OF JOSEPH T ETTORE AS CHAIRMAN AND PRESIDENT MR ETTORE BECAME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF JAMESWAY CORP 9311240171 931124 WORLD MARKETS LONDON STOCKS SLIP AFTER PROFITTAKING STOPS RALLY SPARKED BY UNEXPECTED BRITISH RATE CUT A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES ENDED WITH SMALL LOSSES AFTER A BRITISH LENDINGRATE REDUCTION SPARKED A LATEMORNING RALLY THAT GAVE WAY TO PROFITTAKING FRANKFURT STOCKS IN A VOLATILE SESSION FOLLOWING THE PREVIOUS DAY'S PLUNGE STABILIZED TO FINISH LITTLE CHANGED AIDED A BIT BY BRITAIN'S EASING OF MONETARY POLICY IN MEXICO CITY STOCKS FELL 12 ON PROFITTAKING FOLLOWING THE RECORD RUNUP TO US RATIFICATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH MEXICAN LAWMAKERS ALSO PASSED IN SYDNEY EQUITIES PLUNGED 19 ON FEARS OF HIGHER INTEREST RATES AND IN HONG KONG EVEN AFTER A LATE REBOUND FROM THE LOWER DEPTHS STOCKS SLUMPED 14 TO POST THE MARKET'S SIXTH CONSECUTIVE LOSS THE TOKYO EXCHANGE WAS CLOSED TUESDAY FOR A NATIONAL HOLIDAY IN TRADING WEDNESDAY IN TOKYO THE NIKKEI 225STOCK INDEX ROSE 860 POINTS TO CLOSE THE MORNING SESSION AT 1739344 WORLDWIDE STOCK PRICES WERE FLAT IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS UNCHANGED AT 10842 REFLECTING HIGHER AMERICAN MARKETS AND LOWER EUROPEAN AND ASIA/PACIFIC MARKETS SEMICONDUCTOR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 17901 UP 308 OR 18 WITH APPLIED MATERIALS OF THE US POSTING A 92 GAIN IN ITS LOCAL CURRENCY SHIPBUILDING STOCKS TRAILED AT 10726 DOWN 266 OR 24 WITH KEPPEL OF SINGAPORE SLIDING 57 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EASED 13 POINTS TO 30693 THE FT 30STOCK INDEX EDGED DOWN 02 POINT TO 23280 VOLUME WAS 6671 MILLION SHARES UP SHARPLY FROM 4554 MILLION SHARES A DAY EARLIER THE FT 100 WAS NEAR ITS INTRADAY LOW OF 30506 WHEN THE BANK OF ENGLAND SIGNALED A CUT IN THE BASE LENDING RATE TO 55 FROM 6 THE INDEX RALLIED TO ITS SESSION HIGH OF 30901 THOUGH THE MARKET HAD WIDELY ANTICIPATED THE RATE REDUCTION ITS TIMING CAME AS A SHOCK INVESTORS HADN'T EXPECTED THE MOVE UNTIL NEXT TUESDAY WITH THE BRITISH GOVERNMENT'S BUDGET PRESENTATION BUT IN AFTERNOON DEALINGS PROFITTAKING SENT THE INDEX SLIDING THE LENDING RATE IS AT THE LOWEST LEVEL SINCE 1977 WHICH COULD HELP STIMULATE THE BRITISH ECONOMY TRADERS AND STRATEGISTS BLAMED THE LONDON SESSION'S VOLATILITY ON THE LACK OF PARTICIPATION BY BIG INSTITUTIONAL INVESTORS SUCH AS PENSION FUNDS WHICH HAVE BEEN STAYING SIDELINED UNTIL THE BRITISH BUDGET IS DISCLOSED THESE INVESTORS ARE WORRIED ABOUT EFFECTS ON THEIR HOLDINGS FROM POSSIBLE TAX INCREASES THE PLAYERS IN THE MARKET THIS WEEK HAVE BEEN SHORTTERM INVESTORS WILLING TO TAKE PROFITS IN FRANKFURT THE DAX 30STOCK INDEX SLIPPED 259 POINTS TO 202741 THE BRITISH RATE REDUCTION GAVE FRANKFURT STOCKS A STRONG BOOST INITIALLY BUT WEAK PRICES OF US BONDS HAVE HURT THEIR GERMAN COUNTERPARTS AND THUS WEAKENED CONFIDENCE AS CORPORATE NEWS WAS ALMOST NONEXISTENT DEALINGS WERE DOMINATED BY PROFESSIONALS COVERING SHORT OR OVERSOLD POSITIONS FOLLOWING MONDAY'S DISAPPOINTING DATA ON GERMANY'S MONEYSUPPLY GROWTH INVESTORS ALSO HELD BACK AWAITING INFLATION DATA THIS WEEK FROM GERMANY'S FOUR LARGEST STATES IN MEXICO CITY THE IPC INDEX DECLINED 2686 POINTS TO 215608 THE SELLOFF WHICH HAD BEEN EXPECTED FOLLOWING THE NAFTA APPROVAL WAS LED BY FOREIGN INVESTORS PRIMARILY FROM THE US AFTER THE MEXICAN MARKET SET A SERIES OF RECORD HIGHS IN PARIS FOLLOWING THE PREVIOUS SESSION'S SHARP LOSS STOCKS SUCCUMBED TO MORE SELLING AS PARTICIPANTS CLOSED OUT THE NOVEMBER TRADING ACCOUNT SOME BARGAIN HUNTING EMERGED AND PRICES DID RISE IN RESPONSE TO THE UNEXPECTED BRITISH RATE REDUCTION BUT THOSE GAINS WERE WIPED OUT BY PROFITTAKING PRESSURES THAT ARE TYPICAL AT THE END OF TRADING ACCOUNT PERIODS MOREOVER THE EXCHANGE MAY HAVE LOST POTENTIAL INTERNATIONAL INVESTORS BECAUSE OF A TECHNICAL PROBLEM THAT INTERRUPTED TRADING FOR ABOUT 20 MINUTES ON THE HEELS OF MONDAY'S MAJOR SOFTWARE MALFUNCTION TRADING HAS BEEN MARRED BY TECHNICAL BREAKDOWNS IN THE PAST SEVERAL WEEKS IN AMSTERDAM PRICES FINISHED MIXED BUT RECOUPED MUCH OF THE PREVIOUS SESSION'S STEEP LOSSES AFTER BOUNCING UP AND DOWN THROUGHOUT THE DAY LARGE ORDERS FROM THE OPTIONS BOURSE PROPPED UP PRICES OF MANY LARGER COMPANIES MOST TRANSACTIONS WERE DONE BY PROFESSIONAL PLAYERS AS PRIVATE INVESTORS ARE TAKING A BREATHER FOLLOWING STRONG GAINS OVER THE PAST FEW MONTHS IN MILAN EQUITIES MANAGED A LATE REBOUND BUT ENDED LOWER IN A CONTINUING REACTION TO MONDAY'S POLITICAL NEWS THAT ITALY'S DOMINANT CENTRIST PARTIES HAD BEEN SWEPT AWAY IN MUNICIPAL ELECTIONS SUNDAY WHEN VOTERS CHOSE CANDIDATES ON THE LEFT AND THE RIGHT THIS HURT THE ITALIAN LIRA AND THAT WEAKNESS IN CURRENCY DEALINGS HURT STOCKMARKET SENTIMENT IN MADRID SHARES DROPPED AS SENTIMENT WAS DAMPED BY THE SPANISH CENTRAL BANK'S DECISION TO LEAVE ITS BENCHMARK INTEREST RATE UNCHANGED ALSO TRADE UNIONS IN SPAIN THREATENED TO CALL A GENERAL STRIKE TO PROTEST GOVERNMENT PROPOSALS ON LABOR ISSUES IN STOCKHOLM PRICES TUMBLED MARKING THE FIFTH LOSS IN A ROW TRADING WAS CHOPPY ON SEESAW ACTION IN THE TELECOMMUNICATIONS SECTOR BRITAIN'S MONETARY EASING HELPED SWEDISH SHARES MOVE OFF THE DAY'S LOWS BUT DIDN'T PROVIDE ENOUGH SUPPORT TO SUSTAIN THE REBOUND IN ZURICH STOCKS FINISHED MIXED TO SLIGHTLY HIGHER AFTER OPENING LOWER BUT RISING ON THE BRITISH RATE MOVE AND BARGAIN HUNTING IN SYDNEY SHARE PRICES PLUNGED 19 IN CONTINUED SELLING ON FEARS THAT INTEREST RATES MAY RISE SOON AS WELL AS PROFITTAKING AFTER THE MARKET'S RECENT BULL RUN THE BROADBASED LOSS ATTRIBUTED MORE TO A SHORTAGE OF BUYERS THAN TO ANY PANIC SELLING WAS THE THIRD IN A ROW FOR A 47 LOSS IN THE MAIN INDEX IN HONG KONG THE HANG SENG INDEX MANAGED TO HOLD ABOVE 9000 ON A LATE REBOUND YET ENDED DOWN 13116 POINTS AT 903948 THE BAROMETER HAS SKIDDED 72 IN THE PAST SIX SESSIONS FROM THE RECORD 973334 SET NOV 15 ON TUESDAY SHARES OPENED LOWER BECAUSE OF THE PREVIOUS DAY'S LOSSES FOR HONG KONG STOCKS THAT ALSO TRADE IN LONDON THE DECLINES INTENSIFIED SENDING SHARES BELOW THE PERCEIVED SUPPORT LEVEL OF 9000 FOR THE FIRST TIME IN MORE THAN TWO WEEKS THEN AS NOVEMBEREXPIRATION FUTURES REBOUNDED SHARES BOUNCED BACK TO RECOUP HALF THE DECLINES IN SINGAPORE STOCKS LOST ALMOST 1 IN THIN DIRECTIONLESS ACTIVITY SENT LOWER BY BIG DROPS ON BOURSES ELSEWHERE IN MANILA EQUITIES RETREATED 12 HURT BY A WAVE OF PROFITTAKING AND IN SEOUL SHARES TUMBLED 2 IN TURBULENT SELLING SPURRED BY SPREADING ANXIETY THAT PRICES HAD RISEN BEYOND LEVELS WARRANTED BY FUNDAMENTALS THOUGH SOME ISSUES WITH HIGH ASSET VALUES THAT HAD JUMPED LATELY REMAINED SOLID BUT IN TAIPEI PRICES ROSE SLIGHTLY AS BANKS AND SPECULATIVE ISSUES FIRMED FOLLOWING NEWS THAT THE TAIWAN GOVERNMENT WILL LIBERALIZE STOCKMARKET TRADING RULES NEXT YEAR INVESTORS ALSO WERE ENCOURAGED BY THE CONTINUING FLOW OF CAPITAL FROM FOREIGN INSTITUTIONAL INVESTORS INTO THE TAIPEI STOCK MARKET WHICH TOTALED 106 BILLION SO FAR THIS YEAR HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9311240170 931124 INDUSTRY FOCUS CAPITALGOODS EXECUTIVES MAKE AN ALMOST JOVIAL GROUP CONFERENCE FEATURES HEARTENING STORIES PHEASANT AND APPLAUSE FOR NAFTA BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL MILWAUKEE MAKERS OF CAPITAL GOODS DIDN'T NEED APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT TO PUT THEM IN A CHEERY MOOD LAST WEEK THE SHIFTING WINDS OF THE ECONOMY AND SHIFTING WHIMS OF INVESTORS HAD ALREADY DONE THAT AS THE INDUSTRIAL ECONOMY EXPANDS MANY HEAVYGOODS PRODUCERS SEE THEIR PROFITS GROW EVEN FASTER SOME BELIEVE IT'S THE BEGINNING OF A GRADUAL ECONOMIC UPTURN JOHNSON CONTROLS INC IS REAPING A BIG PAYOFF FROM ITS INVESTMENT IN AUTOMOTIVESEATING PLANTS AO SMITH CORP HAS THREE OF ITS FOUR MAIN BUSINESSES HEADED IN THE RIGHT DIRECTION AND MANITOWOC CO IS SELLING MORE CRANES AND ICE MACHINES ALONG WITH SOME TWO DOZEN OTHER COMPANIES THEY PRESENTED THEIR BULLISH CASE HERE LAST WEEK AT INVESTMENT BANKER ROBERT W BAIRD & CO'S ANNUAL CAPITALGOODS INVESTMENT CONFERENCE PEOPLE ARE TALKING ABOUT THEIR BUSINESS AS IF THEY LIKE IT SAID JOACHIM W SCHNABEL A MONEY MANAGER AT COLLEGE RETIREMENT EQUITIES FUND THAT IS A DISTINCT CHANGE FROM THE RECESSION YEAR OF 1990 DURING THAT YEAR'S CONFERENCE BRIGGS & STRATTON CORP CHAIRMAN FREDERICK STRATTON CLAIMED THAT THERE'S MORE UNCERTAINTY NOW THAN AT ANY TIME IN THE LAST EIGHT YEARS SINCE THEN A TURNAROUND AT BRIGGS & STRATTON AND WALL STREET'S APPETITE FOR CAPITAL GOODS HAVE SENT THE ENGINE MAKER'S SHARES UP MORE THAN THREEFOLD YESTERDAY THE COMPANY'S SHARES ROSE 125 TO 8125 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE NEWS ISN'T ALL GLOWING OF COURSE MANY COMPANIES LAMENT THEY CAN'T INCREASE PRICES AND MUST CUT COSTS TO SQUEEZE OUT EXTRA PROFIT THE EUROPEAN ECONOMY PARTICULARLY GERMANY'S LOOKS EVEN WORSE TO MANY OF THE EXECUTIVES THAN IT DID A FEW MONTHS AGO I WAS HOPING AND PROBABLY WISHFULLY THINKING THAT EUROPE HAD BOTTOMED OUT SAID STEPHEN ROELL CHIEF FINANCIAL OFFICER AT JOHNSON CONTROLS STILL THE POSITIVE OUTLOOK WAS ENOUGH TO SEND MORE THAN 200 MONEY MANAGERS TO THE CONFERENCE THIS IS THE BIGGEST YEAR SINCE 1979 SAID BAIRD CHAIRMAN G FREDERICK KASTEN JR STANDING IN THE OLD MILWAUKEE SECTION OF THE MILWAUKEE PUBLIC MUSEUM WHERE HIS FIRM HOSTED EXECUTIVES AND MONEY MANAGERS ONE EVENING LAST WEEK THE BRIGHTEST STORIES CAME FROM COMPANIES THAT BENEFIT FROM THE REBOUND IN THE AUTO INDUSTRY AND FROM THE AUTO MAKERS' DRIVE TO SEND MORE WORK TO THEIR SUPPLIERS JOHNSON CONTROLS SAW A 50 JUMP IN ITS AUTOMOTIVEPRODUCTS SALES AND A 58 INCREASE IN AUTORELATED OPERATING INCOME IN ITS YEAR ENDED SEPT 30 IT TOLD MONEY MANAGERS THAT IT EXPECTS ITS AUTOMOTIVE SALES TO GROW ANOTHER 10 TO 15 IN FISCAL 1994 LEADING TO ANOTHER FULLYEAR EARNINGS INCREASE AT AO SMITH STRUCTURAL AUTO COMPONENTS SUCH AS FRAMES LED THE WAY TO RECORD THIRDQUARTER PROFITS THE MILWAUKEEBASED COMPANY IS EVEN CAPTURING NEW BUSINESS FROM JAPANESE AUTO MAKERS WITH PLANTS IN THE US WHEN PRESIDENT BUSH WENT TO JAPAN NEARLY TWO YEARS AGO IT REALLY HELPED SAID ROBERT O'TOOLE CHAIRMAN AND CHIEF EXECUTIVE AO SMITH'S WATERHEATER AND FIBERGLASS PIPE BUSINESSES ARE ALSO DOING WELL MAKING UP FOR LOWER PROFITS IN THE ELECTRICMOTOR BUSINESS THE COMPANY SEES ROOM FOR SALES AND PROFIT IMPROVEMENTS IN ALL OF ITS MARKETS MR O'TOOLE SAID FEW EXECUTIVES OUTSIDE THE AUTO SECTOR PREDICTED A SALES BOOM IN THEIR BUSINESSES I FEEL A LITTLE BIT BETTER ABOUT THE ECONOMY SAID FRED BUTLER MANITOWOC'S CHIEF EXECUTIVE BUT I'M COMING FROM DEAD ZERO REBOUNDING SALES FOR MANITOWOC'S CRANES AND ICE MACHINES AREN'T ENOUGH TO MAKE MR BUTLER HAPPY THE COMPANY IS ONE OF A GROWING NUMBER OF CAPITALINTENSIVE FIRMS LOOKING TO BOOST PROFIT BY CUTTING THE AMOUNT OF MONEY TIED UP IN ITS BUSINESSES MANITOWOC PARED ITS INVENTORY BY NEARLY HALF TO 342 MILLION IN ITS YEAR ENDED JULY 3 IN THE NEW FISCAL YEAR THE COMPANY INSTITUTED AN INCENTIVECOMPENSATION PROGRAM TO ENCOURAGE MANAGERS TO USE LESS CAPITAL BUT STILL GROW THE BUSINESS AS MR BUTLER PUT IT NOW HE SAYS MANAGERS TAKE AN ENTIRELY DIFFERENT LOOK WHEN THEY THINK ABOUT SPENDING MONEY THAT LEADS TO ANOTHER PROBLEM HOW TO PUT A GROWING CASH HOARD TO WORK MANITOWOC'S CASH AND MARKETABLE SECURITIES TOTALED 563 MILLION AT THE END OF ITS FISCAL FIRSTQUARTER ENDED OCT 2 UP FROM 488 MILLION THREE MONTHS EARLIER LIKE OTHER COMPANIES WITH CONSERVATIVE BALANCE SHEETS MANITOWOC LOOKS TOWARD ACQUISITIONS AS A SOURCE OF GROWTH IT IS ALSO BUYING BACK ITS OWN SHARES WITH SLOW GROWTH AND LITTLE OR NO ROOM TO INCREASE PRICES MOST COMPANIES AVOID SPENDING ON PLANT EXPANSION BUT GIDDINGS & LEWIS INC THE COUNTRY'S LARGEST MAKER OF MACHINE TOOLS BELIEVES SPENDING ON MACHINES TO BOOST EFFICIENCY WILL CONTINUE PRODUCTIVITY IS THE MAJOR DRIVER OF EARNINGS GROWTH SAID JOSEPH COPPOLA CHAIRMAN AND CHIEF EXECUTIVE OF THE FOND DU LAC WIS COMPANY TO HELP MEET THAT DEMAND GIDDINGS & LEWIS HAS DEVELOPED WHAT IT CALLS A REVOLUTIONARY MACHINE TOOL IT SITS ON FLEXIBLE LEGS THAT ALLOW A MANUFACTURER TO QUICKLY TURN A PIECE OF METAL ANY WAY IT WANTS BUT MONEY MANAGERS' INTEREST SEEMED TO WANE WHEN MR COPPOLA CONFESSED THE RADICALLY DIFFERENT MACHINE DOESN'T YET HAVE CUSTOMERS OR EVEN A NAME WE'VE BEEN WORKING ON THAT FOR SOME TIME MR COPPOLA SAID HE ASSURED THE AUDIENCE THAT THE NAME WILL COME WELL BEFORE THE PRODUCT'S PLANNED INTRODUCTION AT A MACHINETOOL SHOW IN CHICAGO NEXT SEPTEMBER GIDDINGS & LEWIS PLANS TO USE THE NEW MACHINE IN ITS OWN FACTORIES SALES TO OUTSIDERS WILL TAKE LONGER TO DEVELOP WE'RE NOT GOING TO SEE HUGE SALES IN THE FIRST COUPLE YEARS SAID MR COPPOLA NEWS THAT THE FREE TRADE AGREEMENT WAS ABOUT TO PASS IN THE HOUSE OF REPRESENTATIVES CAME AS EXECUTIVES AND MONEY MANAGERS DINED ON PHEASANT AND WILD RICE AT THE MILWAUKEE MUSEUM APPLAUSE FILLED THE MUSEUM LOBBY FOR MOST CAPITALGOODS EXECUTIVES NAFTA WHICH CLEARED ITS FINAL CONGRESSIONAL HURDLE LAST WEEKEND WASN'T ABOUT IMMEDIATE JOB SHIFTS OR SALES GAINS BUT INCREASED ACCESS TO AN ECONOMY THAT IS BOUND TO GROW FASTER THAN THOSE OF THE US AND CANADA INGERSOLLRAND CO FOR EXAMPLE HAS ITS EYE ON CONSTRUCTION MARKETS AS MEXICO BUILDS ITS INFRASTRUCTURE WE HAVE THE BEST WATERWELL DRILLS AROUND BOASTED JAMES E PERRELLA CHAIRMAN AND CHIEF EXECUTIVE FOR SOME THE HAPPY TALK AT THE CONFERENCE AND SURGING INTEREST IN STOCKS OF CAPITAL GOODS MAKERS WAS ENOUGH TO STIR CONTRARIAN JUICES IT MAKES ME WORRY SAID MARK DIERKES A MONEY MANAGER AT PROTECTION MUTUAL INSURANCE CO IN PARK RIDGE ILL HE NOTED THAT SOME COMPANIES' PROJECTIONS FOR AUTO SALES LEFT NO ROOM FOR A DOWNTURN 9311240169 931124 WHO'S NEWS DATA SWITCH CORP DATA SWITCH CORP SHELTON CONN BRUCE BELLMARE 44 YEARS OLD WAS NAMED VICE PRESIDENT OF WORLDWIDE CORPORATE MARKETING FOR THIS MANAGEMENT AND CONTROLSYSTEMS MANUFACTURER SUCCEEDING JEAN DAVENPORT WHO LEFT THE COMPANY MR BELLMARE WAS MOST RECENTLY VICE PRESIDENT MARKETING FOR AGS INFORMATION SERVICES THE SYSTEMS AND NETWORK INTEGRATION ARM OF NYNEX CORP 9311240168 931124 WHO'S NEWS LIPOSOME CO LIPOSOME CO PRINCETON NJ EDWARD G SILVERMAN 40 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR SILVERMAN WAS PREVIOUSLY SENIOR VICE PRESIDENT STRATEGIC OPERATIONS OF THIS LIPOSOME AND LIPIDBASED PHARMACEUTICALS COMPANY 9311240167 931124 WHO'S NEWS NYNEX CORP NYNEX CORP NEW YORK MATTHEW J STOVER 38 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NYNEX'S AGS COMPUTERS INC UNIT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NYNEX INFORMATION RESOURCES CO A PROVIDER OF DIRECTORY LISTINGS EFFECTIVE JAN 1 HE SUCCEEDS DONALD MACKENZIE WHO BECOMES SENIOR VICE PRESIDENT OF TELEPHONE PIONEERS OF AMERICA AN INDUSTRYRELATED VOLUNTEER ORGANIZATION MR MACKENZIE REMAINS CHAIRMAN OF NYNEX INFORMATION RESOURCES CO 9311240166 931124 CHANNELSURFERS BEWARE THERE'S A CHANNELSURFER ZAPPER AFOOT BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL COUCHPOTATO POWER POLITICS MAY NEVER BE THE SAME AGAIN BOB THOMAS A SPOKANE WASH ENGINEER HAS DESIGNED A GADGET TO DISARM THE REMOTE CONTROLS OF CHANNELSURFERS THOSE ZEALOUS USUALLY MALE FLIPPERS OF TELEVISION CHANNELS AT THE TOUCH OF A BUTTON THE SMALL HANDHELD DEVICE MOMENTARILY JAMS THE REMOTE CONTROL'S INFRARED SIGNALS RENDERING REMOTECONTROL DEVICE IMPOTENT IT'S A WAY TO SLOW DOWN THE CHANNEL SURFER SO THAT EVERYBODY CAN SEE WHAT THE PROGRAM HAS BEEN CHANGED TO SAYS MR THOMAS A REFORMED CHANNELSURFER IT'S CALLED STOP IT THE EXHORTATION HIS WIFE OFTEN USED WHEN SHE FOUND HERSELF FRUSTRATED BY HIS CHANNELCHANGING HABITS MR THOMAS SEES STOP IT AS A LIGHTHEARTED WAY TO MAKE A MAN UNDERSTAND HOW FRUSTRATING IT CAN BE TO HAVE THE CHANNELS CHANGED ON YOU SINCE CHANNELSURFERS APPEAR TO BE OVERWHELMINGLY MALE THE IDEA OF A NEUTRALIZER FOR THE REMOTE CONTROL APPEALS TO WOMEN BUT SOME FEAR THE CONSEQUENCES IT'S A GREAT IDEA SAYS KATHY FONG A HAIRSALON OWNER IN VIRGINIA WHO SAYS HER HUSBAND HAS FALLEN ASLEEP WITH THE REMOTE IN HIS HAND AND CHANGED CHANNELS WHILE SLUMBERING IT WOULD BE A GREAT GAG GIFT FOR A SHORT AMOUNT OF TIME BUT I DON'T THINK ANY HOUSEHOLD WOULD SURVIVE TO HAVE IT FOR REAL TERRY MILLER A SECRETARY AT YALE UNIVERSITY WARNS THERE MIGHT BE MURDERS IN GUNOWNING HOUSEHOLDS HOWARD MARKMAN HEAD OF THE CENTER FOR MARITAL STUDIES AT THE UNIVERSITY OF DENVER CALLS CHANNELSURFING ONE OF TWO MAJOR MARITAL ISSUES OF THE '90S THE OTHER BEING THE SCARCITY OF TIME TOGETHER BUT HE WARNS THAT MEN'S NEED TO HOLD A REMOTE CONTROL IS A VESTIGE OF HOLDING A WEAPON SO TAKING AWAY THAT POWER IS EMASCULATING TO RESOLVE THE PROBLEM HE ADVISES WOMEN TO SNUGGLE UP TO THE CHANNELSURFER AND HAVE THEM HOLD ON TO YOU INSTEAD OF THE REMOTE CONTROL MR THOMAS WHO HAS GIVEN STOP IT TO FRIENDS AND RELATIVES SAYS HE HASN'T RECEIVED ANY NEWS OF IMPENDING DIVORCE HIS WIFE DIANE HAS BEEN TRYING OUT PROTOTYPES OF THE 2995 GADGET ON HIM FOR THE PAST FIVE MONTHS SHE SAYS HE HAS BECOME MORE POLITE ABOUT CHANGING CHANNELS HER TECHNIQUE DON'T USE IT ALL THE TIME SO HE FORGETS IT EXISTS IT WORKS BETTER WHEN THERE'S AN ELEMENT OF SURPRISE SHE SAYS 9311240165 931124 WHO'S NEWS PAYLESS CASHWAYS INC PAYLESS CASHWAYS INC KANSAS CITY MO SUSAN M STANTON 45 YEARS OLD WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF THIS BUILDINGMATERIALS SPECIALTY RETAILER EFFECTIVE SUNDAY MS STANTON WHO HAS BEEN SENIOR VICE PRESIDENTMERCHANDISING WILL SUCCEED LARRY P KUNZ 58 WHO WILL CONCENTRATE ON SPECIFIC STRATEGIC ASSIGNMENTS FOR THE COMPANY AND WILL CONTINUE AS A DIRECTOR 9311240164 931124 TECHNOLOGY EDS WINS 148 BILLION CONTRACT TO RUN COMPUTERS FOR BRITAIN'S TAX AGENCY BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ELECTRONIC DATA SYSTEMS CORP WON A 1 BILLION 148 BILLION CONTRACT TO RUN THE COMPUTERS FOR BRITAIN'S TAX AGENCY BEATING RIVALS INCLUDING IBM FOR ONE OF THE MOST SOUGHTAFTER COMPUTER CONTRACTS IN EUROPE THE GENERAL MOTORS CORP UNIT'S CONTRACT WITH INLAND REVENUE IS THE BIGGEST EVER AWARDED IN EUROPE FOR OUTSOURCING OR TAKING OVER ALL OF A CLIENT'S COMPUTER OPERATIONS UNDER THE 10YEAR CONTRACT INTENDED TO SAVE THE GOVERNMENT MONEY AND IMPROVE COMPUTERIZATION 2000 INLAND REVENUE TECHNICIANS WILL BECOME EDS EMPLOYEES AND MANAGE THE COMPUTERS USED TO PROCESS UK TAX RETURNS AND COLLECT TAXES AMONG OTHER THINGS FOR EDS THE CONTRACT IS A MUCHNEEDED BOON SWELLING ITS UK OPERATIONS BY 50 AND BURNISHING ITS REPUTATION IN EUROPE MANY OF THE MAJOR PLAYERS IN THE EUROPEAN COMPUTERSERVICES MARKET HAD VIED FOR THE INLAND REVENUE JOB INCLUDING THE HOSKYNS UNIT OF FRANCE'S CAP GEMINI SOGETI SA AND THE ICL PLC AFFILIATE OF JAPAN'S FUJITSU LTD THOSE COMPANIES WERE ELIMINATED IN EARLY ROUNDS LEAVING THE FINAL COMPETITION AS A DUEL BETWEEN EDS AND AN ALLIANCE OF INTERNATIONAL BUSINESS MACHINES CORP AND COMPUTER SCIENCES CORP AN IBM SPOKESMAN EXPRESSED DISAPPOINTMENT AT THE DECISION THE AWARD COULDN'T COME AT A BETTER TIME FOR EDS WHICH HAS HIT SOME ROUGH WEATHER LATELY IT HAS POSTED ONLY SINGLEDIGIT REVENUE INCREASES IN EACH OF THE PAST THREE QUARTERS DISAPPOINTING MANY ANALYSTS WHO HAD BEEN EXPECTING INCREASES AS HIGH AS 20 AND IN THE PAST WEEK EDS STOCK HAS FALLEN 13 TO 27 FOLLOWING NEWS THAT THE COMPANY LOST THE SECONDBIGGEST EUROPEAN OUTSOURCING CONTRACT A 900 MILLION 10YEAR AWARD BY BRITISH AEROSPACE PLC TO EL SEGUNDO CALIFBASED COMPUTER SCIENCES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GM'S CLASS E SHARES WHICH REPRESENT A DIVIDEND INTEREST IN THE EARNINGS OF EDS GAINED 150 OR 56 TO 2850 THE NOTION OF CONTRACTING OUT ALL THE COMPUTER WORK OF A CORPORATION OR GOVERNMENT AGENCY FIRST CAUGHT ON IN THE US MARKET BUT IS NOW BECOMING FASHIONABLE AMONG RECESSIONBATTERED EUROPEAN CORPORATIONS AND A FEW GOVERNMENTS SO FAR US COMPANIES HAVE BEEN THE STRONGEST COMPETITORS THE MOST COMMON AIM OF OUTSOURCING IS SAVING MONEY BY HAVING A BIG COMPUTER COMPANY WITH ITS ECONOMIES OF SCALE TAKE OVER THE WORK OF WHAT WAS PREVIOUSLY AN ISOLATED CORPORATE COMPUTER DEPARTMENT IN FACT THE INDUSTRY'S RECORD SHOWS FINANCIAL FAILURES AS WELL AS SUCCESSES SAID DAVID BRADSHAW AN ANALYST AT OVUM LTD A LONDONBASED MARKET RESEARCH FIRM AN INLAND REVENUE SPOKESWOMAN DECLINED TO SAY WHAT SIZE SAVINGS ARE EXPECTED IN TIME ANALYSTS WARNED EDS COULD FIND SOME BIG HEADACHES GO ALONG WITH THE CONTRACT FOR STARTERS MANY OF THE 2000 INLAND REVENUE TECHNICIANS INVOLVED IN THE WORK ARE OPPOSED TO OUTSOURCING AND EVEN JOINED A ONEDAY STRIKE NOV 5 BY 250000 UK CIVIL SERVANTS PROTESTING MARKET TESTING AS THE CONSERVATIVE PARTY GOVERNMENT CALLS ITS CONTROVERSIAL POLICY OF CONTRACTING OUT MANY GOVERNMENT SERVICES TO THE PRIVATE SECTOR SEVERAL MONTHS OF DELICATE LABOR NEGOTIATIONS LIE AHEAD FOR EDS AMONG THE ISSUES TO BE SETTLED A UNION SPOKESMAN SAID ARE TERMS OF THE TECHNICIANS' PENSIONS JOB SECURITY AND UNION REPRESENTATION EDS AND INLAND REVENUE DECLINED TO COMMENT ON WHETHER JOBS WILL BE CUT KYLE POPE IN DALLAS CONTRIBUTED TO THIS ARTICLE 9311240163 931124 POLITICS & POLICY DEPUTY CHIEF OF STAFF NEEL'S CAREER PLANS RANKLE MANY WHO REMEMBER CLINTON CAMPAIGN PLEDGE BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROY NEEL IS THE FIRST OF BILL CLINTON'S APPOINTEES TO BE STUCK IN THE REVOLVING DOOR BETWEEN A WHITE HOUSE POST AND THE MONEY TO BE MADE LOBBYING FOR PRIVATE INDUSTRY HIS BOSS PRESIDENT CLINTON VOWED AS A CANDIDATE TO SLAM THE DOOR SHUT ON HIGHPRICED LOBBYISTS AND INFLUENCE PEDDLERS BY TOUGHENING THE REGULATIONS ON WHAT EXGOVERNMENT EMPLOYEES CAN DO BUT MR NEEL THE DEPUTY CHIEF OF STAFF WILL SOON TEST THE NEW STANDARDS HE IS CLOSE TO ACCEPTING ABOUT 500000 A YEAR TO RUN THE US TELEPHONE ASSOCIATION THE HIGHPOWERED LOBBYING MACHINE FOR THE REGIONAL AND LOCAL PHONE COMPANIES MR NEEL IS THE LATEST PLUM TO BE RECRUITED BY A TELECOMMUNICATIONS INDUSTRY GOBBLING UP POLITICALLY CONNECTED TALENT FOR THE LEGISLATIVE BATTLES THAT LIE AHEAD ALREADY THE CENTER FOR PUBLIC INTEGRITY HAS NAMED 50 FORMER GOVERNMENT EMPLOYEES MOST FROM REPUBLICAN ADMINISTRATIONS WHO WILL TRY TO INFLUENCE THE VAST CHANGES COMING AS THE GOVERNMENT OVERHAULS THE RULES IN THE COMMUNICATIONS FIELD AND ENCOURAGES THE CREATION OF AN INFORMATION HIGHWAY MR NEEL'S LIKELY MOVE HAS JARRED BOTH THE COMMUNICATIONS INDUSTRY AND PUBLICINTEREST GROUPS BECAUSE IT REPRESENTS EXACTLY WHAT MR CLINTON SAID HE WOULD STOP THE PRESIDENT REQUIRES SENIOR APPOINTEES TO SIGN A PLEDGE NOT TO LOBBY THE OFFICES WHERE THEY WORK FOR FIVE YEARS AFTER THEY LEAVE BUT AS MR NEEL'S CASE SHOWS THAT DOES LITTLE TO PREVENT SENIOR OFFICIALS FROM JUMPING SHIP TO ORGANIZATIONS THAT WILL LOBBY CONGRESS THIS IS THE TYPICAL EXAMPLE OF THE REVOLVING DOOR AND IS WHY THE PUBLIC IS SO CYNICAL SAYS PAMELA GILBERT DIRECTOR OF PUBLIC CITIZEN'S CONGRESS WATCH IT IS A VIOLATION OF THE SPIRIT OF THE EXECUTIVE ORDER AND THAT IS A REAL DISAPPOINTMENT ROY WOULD BE A TREMENDOUS CATCH FOR THEM SAYS BRIAN MOIR A WASHINGTON TELECOMMUNICATIONS ATTORNEY INDEED IT IS HARD TO MATCH MR NEEL'S DEPTH OF EXPERIENCE OR HIS POLITICAL CONTACTS ON THE TELECOMMUNICATIONS ISSUE AS THE PRESIDENT'S DEPUTY CHIEF OF STAFF AND AS A LONGTIME ADVISER TO VICE PRESIDENT AL GORE HE'S BEEN ON THE POLITICAL FRONT LINES AS WELL AS SERVING AS ONE OF THE ADMINISTRATION'S LEADING EXPERTS ON HIGHTECH AND COMMUNICATIONS ISSUES WHILE THE CLINTON ADMINISTRATION'S ETHICS GUIDELINES WOULD BAR MR NEEL FROM LOBBYING THE WHITE HOUSE HE NOT ONLY COULD LOBBY THE CONGRESS ON COMMUNICATIONS ISSUES HE APPARENTLY COULD ALSO LOBBY THE FEDERAL COMMUNICATIONS COMMISSION EVEN THOUGH THE NEW FCC CHAIRMAN REID HUNDT IS A PAL OF BOTH HIS AND VICE PRESIDENT GORE'S AND THEY STRONGLY SUPPORTED HIS APPOINTMENT THE RULE SAYS HE CAN'T LOBBY AGENCIES WHERE HE HAS HAD PERSONAL AND A SUBSTANTIAL RESPONSIBILITY AS A WHITE HOUSE OFFICIAL MR NEEL WHO ACKNOWLEDGES IN AN INTERVIEW THAT HE PLANS TO LEAVE THE WHITE HOUSE DOESN'T OVERSEE THE FCC AND SAID HE DOESN'T KNOW WHETHER HE WOULD BE ALLOWED TO LOBBY MR HUNDT BUT HE SAID THE RULE SHOULD NOT RESTRICT HIM AND OTHERS FROM DOING THEIR JOBS OR VOID FRIENDSHIPS DOES WORKING IN PUBLIC SERVICE REQUIRE ONE TO END PERSONAL FRIENDSHIPS THAT DEEPLY PRECEDE ANY OF THE CURRENT ROLES HE ASKED BUT HE ADDS THAT IT IS EXTREMELY IMPORTANT THAT PEOPLE CONDUCT THEMSELVES ACCORDING TO THE LAW MR NEEL SAYS HE IS CONSIDERING SEVERAL OFFERS IN ADDITION TO THE ONE FROM THE TELEPHONE ASSOCIATION FRIENDS SAY HE HAS ALL BUT DECIDED TO TAKE THE TELEPHONE ASSOCIATION POST BUT HE KNOWS THE SPOTLIGHT WILL BE ON HIM BECAUSE OF THE ETHICAL STANDARDS MR CLINTON WANTS TO SET IT IS A FAIR QUESTION TO LOOK AT HOW THESE RULES WILL AFFECT ALL TOPLEVEL CLINTON PEOPLE AS THEY START TO LEAVE HE SAYS MR NEEL INSISTS THAT HE WILL DO NOTHING TO EMBARRASS MR CLINTON OR MR GORE IT IS NOT MY EXPECTATION THAT I WILL BE IN THE BUSINESS OF LOBBYING HE SAYS BUT IF HE TAKES THE TELEPHONE ASSOCIATION JOB HE WILL HEAD THE ORGANIZATION THAT LOBBIES FOR THE INDUSTRY MR NEEL SAYS THAT AS A CHIEF EXECUTIVE OFFICER FOR THE TELEPHONE INDUSTRY OR SOMEONE ELSE HE WOULD CONCENTRATE ON STRATEGIC PLANNING AND BEING A PUBLIC SPOKESMAN HE ACKNOWLEDGED HOWEVER THAT UNDER THE REGULATIONS HE COULD LOBBY CONGRESS IF HE WANTED TO IN ANY EVENT IF MR NEEL IS WORKING FOR THE TELEPHONE COMPANIES POLICIES THAT MR GORE ADVOCATES TOWARD THE INDUSTRY WILL BE CLOSELY SCRUTINIZED THE 48YEAROLD TENNESSEE NATIVE WILL BE JOINING OTHERS WITH TIES TO THE WHITE HOUSE WHO ARE CASHING IN RECENTLY WHEN BELL ATLANTIC CORP PROPOSED ITS HUGE ACQUISITION OF TELECOMMUNICATIONS INC IT RETAINED PETER KNIGHT WHO WAS ONE OF MR GORE'S TOP CAMPAIGN ADVISERS AND HIS ADMINISTRATIVE ASSISTANT WHEN HE WAS A SENATOR BELL ATLANTIC ALSO RETAINED THOMAS CASEY OF SKADDEN ARPS SLATE MEAGHER & FLOM A LAWYER WHO WORKED AS A TOP COMMUNICATIONS ADVISER TO PRESIDENT CLINTON DURING THE CAMPAIGN AND TRANSITION TO OFFICE IT ISN'T JUST CLINTON DEMOCRATS WHO ARE HOT COMMODITIES FORMER TOP AIDES TO SEN ERNEST HOLLINGS D SC AND REP JOHN DINGELL D MICH THE MEN WHO HAVE JURISDICTION OVER TELECOMMUNICATIONS ISSUES IN CONGRESS ALSO HAVE BEEN RETAINED TO REPRESENT THE REGIONAL BELL COMPANIES FORMER REAGAN AND BUSH ADMINISTRATION OFFICIALS WHO DEALT WITH TELECOMMUNICATIONS ISSUES SUCH AS BERNARD WUNDER AND DAVID MARKEY ALSO PARACHUTED FROM GOVERNMENT INTO LUCRATIVE JOBS WITH MR WUNDER LAUNCHING HIS OWN LAW AND LOBBYING FIRM MR KNIGHT IS HIS PARTNER AND MR MARKEY JOINING BELLSOUTH CORP'S WASHINGTON DC OFFICE THEY THE BELLS CERTAINLY HAVE A CORNER ON THE MARKET SAYS MR MOIR THE ATTORNEY OF COURSE SOME BELL COMPETITORS INCLUDING MCI COMMUNICATIONS CORP HAVE ALSO HIRED FORMER POLS STILL THE HOT PROPERTY IS MR NEEL WHAT THE TELEPHONE INDUSTRY WANTS ARE HIS CONTACTS BESIDES HIS 16 YEARS OF WORKING FOR MR GORE WHO WILL BE INSTRUMENTAL IN THE ADMINISTRATION'S HIGHTECHNOLOGY DECISIONS MR NEEL BECAME A GOLFING BUDDY OF THE PRESIDENT'S DURING THE TRANSITION AND HAS STRUCK UP A FRIENDSHIP WITH CHIEF OF STAFF MACK MCLARTY MR NEEL WAS THE COMMUNICATIONS EXPERT IN MR GORE'S SENATE OFFICE WHILE MR GORE HAS BEEN SEEN AS A FRIEND OF THE TELEPHONE INDUSTRY CABLETELEVISION INTERESTS SAID IT WAS MR NEEL WHO WAS ALWAYS FAIR TO THEM HE ALSO IS A FRIEND TO LABOR WHEN HE SPOTTED THE LOCAL PHONE COMPANY INSTALLING WIRE IN THE WHITE HOUSE THAT WAS MADE IN FRANCE HE OBJECTED AND MADE THEM BUY SOME MANUFACTURED IN THE US PERHAPS AS AN INDICATION OF THE BLURRED LINE BETWEEN WHAT'S RIGHT AND WRONG IN WASHINGTON MR NEEL IS DESCRIBED BY FRIENDS AS AN UNLIKELY CANDIDATE TO BE ACCUSED OF ABUSING THE SYSTEM INDEED HE WOULD STICK OUT IN GUCCI GULCH THE POWER HALLWAY WHERE LOBBYISTS GATHER ON CAPITOL HILL MR NEEL IS RENOWNED FOR THE HOLES THAT FREQUENTLY APPEAR IN HIS SOCKS HE'S AS ETHICAL AS THE DAY IS LONG INSISTS MARLA ROMASH WHO WAS THE PRESS SECRETARY FOR MR GORE AND WORKED WITH MR NEEL FOR YEARS HE IS NOT A GUY WHO PLAYS ANGLES MR NEEL SAYS HE IS LEAVING THE WHITE HOUSE TO SPEND MORE TIME WITH HIS WIFE AND THREE CHILDREN IN FACT FRIENDS SAY HE HAS TRIED BEFORE TO LEAVE PUBLIC LIFE ONLY TO BE DERAILED BY EVENTS THAT AFFECTED MR GORE'S CAREER FIRST MR GORE RAN FOR PRESIDENT IN 1988 WHEN HE WAS PLANNING TO GO THEN HE STAYED ON AFTER MR GORE'S SON WAS CRITICALLY INJURED IN A CAR ACCIDENT AND AGAIN HE REMAINED WHEN MR GORE WAS CHOSEN BY MR CLINTON TO BE HIS RUNNING MATE MR NEEL SAYS THAT HE HAS RECUSED HIMSELF FROM PARTICIPATING ON CERTAIN ISSUES BECAUSE OF THE CONTACTS HE HAS HAD HE ALSO SAYS HE INFORMED THE WHITE HOUSE COUNSEL'S OFFICE OF HIS DISCUSSIONS TO ENSURE THAT HE WASN'T VIOLATING ANY ETHICAL CODES STILL IT HAS STUNNED SOME PEOPLE THAT HE HAS BECOME SUCH A PRIZE AFTER SPENDING ONLY SIX MONTHS AS DEPUTY CHIEF OF STAFF LESS THAN A YEAR IN THE ADMINISTRATION THIS IS ONE OF THE FASTEST GETAWAYS ON RECORD LAMENTED CHARLES LEWIS DIRECTOR OF THE CENTER FOR PUBLIC INTEGRITY IT APPEARS THAT THESE PEOPLE ARE NO DIFFERENT FROM ANYBODY ELSE 9311240162 931124 HAWAIIAN AIRLINES' TRAFFIC HONOLULU HAWAIIAN AIRLINES SAID IT FLEW 2551 MILLION REVENUE PASSENGER MILES IN OCTOBER DOWN 42 FROM 2663 MILLION IN OCTOBER 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE EXCLUDING THE MILEAGE ON A JAPAN ROUTE LEASED TO NORTHWEST AIRLINES FOR PART OF THE YEAREARLIER MONTH TRAFFIC IN OCTOBER WAS UP 12 THE CARRIER SAID 9311240161 931124 WHO'S NEWS SEARS CANADA INC SEARS CANADA INC TORONTO DONALD S SHAFFER 49 YEARS OLD WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OF THIS RETAILING CONCERN AT THE END OF THE YEAR MR SHAFFER CURRENTLY CHIEF OPERATING OFFICER WILL SUCCEED G JOSEPH REDDINGTON 52 WHO DECIDED TO ACCEPT AN EARLYRETIREMENT PACKAGE OFFERED BY SEARS ROEBUCK & CO WHICH OWNS 61 OF SEARS CANADA SAID A SEARS CANADA SPOKESMAN MR REDDINGTON WILL REMAIN A DIRECTOR OF THE COMPANY THE SPOKESMAN SAID 9311240160 931124 YIELDS ON CDS AT BANKS BROKERAGE FIRMS WERE FLAT IN LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE GENERALLY FLAT IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 274 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCHED UP TO 443 FROM 442 ACCORDING TO THE WILMINGTON DEL INFORMATION SERVICE THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS REMAINED AT 326 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 461 FROM 456 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 OR MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CREPT UP TO 283 FROM 282 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 464 FROM 459 ACCORDING TO BANXQUOTE 9311240159 931124 PROXIMA TO REPURCHASE STOCK SAN DIEGO PROXIMA CORP SAID ITS BOARD AUTHORIZED AS MUCH AS 3 MILLION FOR THE REPURCHASE OF THE COMPANY'S COMMON STOCK IN THE OPEN MARKET AT TIMES AND PRICES TO BE DETERMINED BY THE BOARD'S FINANCE COMMITTEE AT YESTERDAY'S CLOSING PRICE OF 7375 A SHARE UP 125 CENTS OR 17 IN NASDAQ STOCK MARKET TRADING THE AUTHORIZATION WOULD PERMIT THE REPURCHASE OF ABOUT 407000 SHARES OR 67 OF THE 61 MILLION SHARES OUTSTANDING PROXIMA MAKES PROJECTION DEVICES FOR DESKTOP COMPUTERS 9311240158 931124 SILCORP SELLS 54 QUEBEC STORES TORONTO SILCORP LTD SAID IT HAS COMPLETED THE SALE OF ITS QUEBEC OPERATIONS TO ALIMENTATION COUCHETARD INC THE TRANSACTION INVOLVED THE SALE OF 54 OF THE 63 STORES OPERATED BY THE SPECIALTY RETAILER IN QUEBEC SUBJECT TO FINAL ADJUSTMENTS SILCORP SAID IT EXPECTS TO RECEIVE PROCEEDS OF ABOUT 35 MILLION CANADIAN DOLLARS US26 MILLION FROM THE SALE AND FROM THE REALIZATION OF OTHER ASSETS OF THE BUSINESS SOLD TO COUCHETARD SILCORP SAID IT WILL CONTINUE TO SEEK BUYERS FOR THE ASSETS OF THE REMAINING NINE STORES IT CONTINUES TO OPERATE IN QUEBEC IN CONNECTION WITH THE SALE SILCORP SAID IT HAS AGREED NOT TO OPERATE A CONVENIENCESTORE BUSINESS IN QUEBEC FOR THREE YEARS 9311240157 931124 GM PLANS SALE OF PARTS UNITS ANGERING UAW THREE PLANTS WILL BE SOLD TO DELCO JOINT VENTURE IN BID TO LIFT EFFICIENCY BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP ARRANGED TO SELL SOME ADDITIONAL PARTSMAKING UNITS CONTINUING AN EFFICIENCY DRIVE THAT IS STARTING TO PAY OFF BUT IS ALSO ANGERING THE UNITED AUTO WORKERS GM TENTATIVELY AGREED TO SELL THREE PLANTS FROM ITS DELCO REMY DIVISION THAT MAKE STARTER MOTORS TO A JOINT VENTURE DELCO REMY AMERICA THAT WILL BE 80OWNED BY A GROUP OF INVESTORS GM IS TO HOLD THE REMAINING 20 THE PRICE WASN'T DISCLOSED TWO OF THE PLANTS ARE IN ANDERSON IND AND THE THIRD IS IN MERIDIAN MISS TOGETHER THEY EMPLOY NEARLY 2000 WORKERS THE PURCHASING JOINT VENTURE WILL BE HEADED BY HAROLD K SPERLICH A FORMER PRESIDENT OF CHRYSLER CORP THE GROUP OF INVESTORS IS CALLED TRANSPORTATION SYSTEMS INC AND ITS LEAD INVESTORS ARE CITICORP VENTURE CAPITAL A UNIT OF CITICORP AND MASCOTECH INC AN AUTO PARTSMAKING COMPANY SUCH MOVES ARE PART OF WHAT WALL STREET ANALYSTS ARE HAILING AS A SURPRISING TURNAROUND OF WHAT WAS ONCE ONE OF GM'S WORSTPERFORMING BUSINESS UNITS ACCORDING TO GM THE AUTOMOTIVE COMPONENTS GROUP WORLDWIDE WILL BE SOLIDLY PROFITABLE THIS YEAR IN ITS EARNINGS BEFORE TAXES INTEREST AND RETIREE HEALTHCARE COSTS THAT REPRESENTS A 18 BILLION TURNAROUND FROM ITS PERFORMANCE IN 1991 GM ANNOUNCED SEPARATE DEALS IN SEPTEMBER TO SELL ITS AXLE AND FORGE BUSINESS TO ANOTHER GROUP OF INVESTORS AND TO SELL AN 80 SHARE IN ITS SMALLMOTOR BUSINESS TO ITT CORP JT BATTENBERG III THE VICE PRESIDENT AND GROUP EXECUTIVE IN CHARGE OF THE COMPONENTS DIVISION SAID HE EXPECTS TO ANNOUNCE BY THE END OF THIS YEAR MORE SALES OF BUSINESSES THAT ARE EITHER NOT COMPETITIVE OR CONSIDERED NONSTRATEGIC WE WERE TOO BIG AND TOO DIVERSIFIED SAID MR BATTENBERG WHO DECLARED THAT HIS AIM IS TO REFOCUS THE BUSINESS HE ESTIMATES THAT 20000 TO 30000 OF THE UNIT'S US WORKERS ARE EMPLOYED IN NONCOMPETITIVE PARTS PLANTS IF YOU GET RID OF THESE BUSINESSES YOU CAN TURN THIS THING AROUND PRETTY QUICKLY HE SAID MR BATTENBERG ALSO IS PRESSURING THE BUSINESSES HE INTENDS TO KEEP TO BECOME MORE EFFICIENT AND THAT'S WHAT IS IRRITATING THE UAW STEPHEN P YOKICH THE UAW VICE PRESIDENT WHO NEGOTIATES FOR GM WORKERS ASSAILED GM MONDAY DURING A CONTRACTSIGNING CEREMONY BECAUSE OF GM'S PUSH FOR STAFF REDUCTIONS AT A BALLBEARING PLANT IN SANDUSKY OHIO GM HAD INITIALLY TARGETED THE PLANT FOR SALE BUT AGREED IN NATIONALCONTRACT TALKS TO KEEP IT OPEN THEN LAST FRIDAY ACCORDING TO CLYDE SIMS THE PLANT BARGAINING CHAIRMAN LOCAL MANAGEMENT DEMANDED SUBSTANTIAL CUTS IN THE PLANT'S 1300MEMBER WORK FORCE MR YOKICH VIEWED THAT AS RENEGING ON THE AGREEMENT UNION OFFICIALS SAY GM OFFICIALS HAVE PROMISED TO LOOK INTO THE MATTER GM SHARES CLOSED YESTERDAY AT 5275 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9311240155 931124 VODAFONE FIRSTHALF PROFIT ROSE LONDON VODAFONE GROUP PLC REPORTED THAT PRETAX PROFIT ROSE 89 IN THE FIRST HALF TO 1745 MILLION 2574 MILLION FROM 1602 MILLION A YEAR EARLIER IT SAID PROSPECTS FOR THE YEAR ARE GOOD VODAFONE WHICH PROVIDES MOBILE TELECOMMUNICATIONS SERVICES SAID OVERSEAS INVESTMENTS HURT ITS FINANCES SALES WERE UP 22 TO 3898 MILLION FROM 3198 MILLION EARNINGS PER SHARE WERE 117 PENCE UP 87 FROM 1076 PENCE VODAFONE SPENT 22 MILLION ON CAPITAL EXPENDITURE ABROAD AND 49 MILLION DOMESTICALLY 9311240154 931124 ADVANCED LOGIC MARKETING PACT IRVINE CALIF ADVANCED LOGIC RESEARCH INC A COMPUTER MAKER SIGNED AN AGREEMENT TO DISTRIBUTE ITS PRODUCTS THROUGH INTELLIGENT ELECTRONICS INC'S NATIONAL ACCOUNT VENDOR PROGRAM ADVANCED LOGIC SAID THE PROGRAM SERVES A NETWORK OF MORE THAN 1700 INTELLIGENT ELECTRONICS FRANCHISES AND AFFILIATES NATIONWIDE FINANCIAL TERMS WEREN'T DISCLOSED 9311240153 931124 AMPHENOL UNIT'S CHINA VENTURE WALLINGFORD CONN AMPHENOL CORP SAID ITS TIMES FIBER COMMUNICATIONS INC SUBSIDIARY SIGNED AN AGREEMENT FOR A JOINT VENTURE TO MAKE AND SELL COAXIAL CABLE FOR CABLETELEVISION SYSTEMS IN CHINA TERMS WEREN'T DISCLOSED THE COMPANY SAID TIMES FIBER WILL TRANSFER TECHNOLOGY PRODUCTION METHODS AND EQUIPMENT TO THE VENTURE WHICH WILL BE 65OWNED BY TIMES FIBER AND 35OWNED BY THE CHANGZHOU DEVELOPMENT AUTHORITY A GOVERNMENT AGENCY AMPHENOL MANUFACTURES ELECTRONIC CABLE AND ELECTRONIC COMPONENTS 9311240152 931124 HANSON INDUSTRIES TO SELL UNIT ISELIN NJ HANSON INDUSTRIES AGREED TO SELL ITS OFFICE PRODUCTS UNIT FOR 163 MILLION TO A CLOSELY HELD COLORADO COMPANY HANSON THE US SUBSIDIARY OF HANSON PLC SAID IT WILL SELL THE UNIT ACQUIRED IN 1987 AS PART OF ITS PURCHASE OF KIDDE INC TO CORPORATE EXPRESS OF AURORA COLO IN THE FISCAL YEAR ENDED SEPT 30 HANSON'S OFFICE PRODUCT UNIT IN CLIFTON NJ HAD OPERATING PROFIT OF 139 MILLION ON SALES OF 3794 MILLION 9311240151 931124 KILLEARN AGREES TO SELL PROPERTIES TALLAHASSEE FLA KILLEARN PROPERTIES INC SAID IT ENTERED INTO A CONTRACT TO SELL TO AN UNDISCLOSED BUYER SUBSTANTIALLY ALL ITS PROPERTIES HERE KILLEARN SAID THE PRICE IS EXPECTED TO BE ABOUT 255 MILLION WHICH INCLUDES THE ASSUMPTION OF ABOUT 145 MILLION OF DEBT THE REALESTATE FIRM SAID THE SALE IS SUBJECT TO CONDITIONS INCLUDING THE LENDERS' AGREEMENT FOR THE DEBT TO BE ASSUMED BY THE THIRDPARTY PURCHASER KILLEARN EXPECTS THE TRANSACTION TO CLOSE BY DEC 31 9311240150 931124 COMMODITIES OIL PRICES PLUMMET WHILE SKEPTICISM MOUNTS OVER ABILITY OF OPEC TO END PETROLEUM GLUT BY BHUSHAN BAHREE AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL VIENNA OIL PRICES PLUNGED AGAIN AS OPEC'S FRUSTRATED OIL MINISTERS DEFERRED DISCUSSION OF THEIR OVERSUPPLY PROBLEM UNTIL TODAY EVEN AS FORMAL TALKS BEGAN HERE YESTERDAY AT THE CRUCIAL WINTER MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SKEPTICISM MOUNTED THAT THE MINISTERS COULD END THE OIL GLUT AS A CONSEQUENCE CRUDEOIL PRICES BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 17 A BARREL IN US FUTURES TRADING PARTLY TO BLAME FOR THE FALL WAS NEWS THAT TARIQ AZIZ IRAQ'S DEPUTY PREMIER PLANNED TO REMAIN IN NEW YORK TO PRESS FOR A LIFTING OF THE UNITED NATIONS' BAN ON IRAQI OIL EXPORTS ON THE NEW YORK MERCANTILE EXCHANGE CRUDE FOR JANUARY DELIVERY SETTLED AT 1663 A BARREL DOWN 47 CENTS ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE CRUDE FUTURES CLOSED DOWN BETWEEN 47 CENTS TO 49 CENTS A BARREL HOPES BY OPEC AND THE WORLD OIL MARKET THAT SAUDI ARABIA YESTERDAY WOULD PROVIDE NEW SUPPORT FOR OIL PRICES WERE PREMATURE THE KINGDOM'S OIL MINISTER HISHAM NAZER JOINED THE OTHERS LATE YESTERDAY JUST BEFORE THE CONFERENCE'S OPENING CEREMONY BUT HAD LITTLE TO SAY ABOUT SAUDI INTENTIONS IT IS KNOWN THAT SAUDI ARABIA WANTS HIGHER OIL PRICES AND MAY BE PREPARED TO WORK WITH OTHER PRODUCERS TO BOOST THEM JEAN PING GABON'S OIL MINISTER AND OUTGOING OPEC PRESIDENT TOLD THE MINISTERS THAT THE AVERAGE OF THE BASKET OF SEVEN CRUDES THEY USE AS A REFERENCE PRICE WAS ONLY 1470 A BARREL DOWN NEARLY ONETHIRD FROM THE TARGET OF 21 SET IN 1990 THE OPEC BASKET OF CRUDES GENERALLY AVERAGES ABOUT 2 LESS THAN THE PRICE OF THE US BENCHMARK CRUDE STILL SAID MR PING THE OPEC BASKET IS DANGEROUSLY BELOW WHAT MOST OF US WOULD RECOGNIZE AS THE MINIMUM LEVEL OF ECONOMIC RENT DUE A PRODUCER OF A VALUABLE NATURAL RESOURCE SUCH AS OIL MR PING WAS INCREDULOUS HOW HAS THIS HAPPENED HE ASKED HE WOULDN'T ACCEPT THAT INCREASING OUTPUT FROM NONOPEC SUPPLIERS AND WEAK ECONOMIES ADEQUATELY ACCOUNTED FOR THE EROSION THE QUESTION HAS PERPLEXED OTHER OIL MINISTERS IN OPEC WHO ONLY TWO MONTHS AGO CURBED THEIR EXPANDING OUTPUT TO BALANCE THE FRAGILE OIL MARKET THE AGREEMENT SET A NEW PRODUCTION CEILING OF 245 MILLION BARRELS A DAY FOR SIX MONTHS IT WAS WIDELY APPLAUDED IN THE OIL INDUSTRY AND BRIEFLY BOOSTED THE AVERAGE OPEC PRICE TO 1610 A BARREL HOWEVER THE OIL MARKET SINCE HAS BECOME AN ENIGMATIC ADVERSARY OF OPEC MR PING WONDERED ALOUD ABOUT SOME HIDDEN LOGIC OR RATIONALE UNDERPINNING TODAY'S MARKET PSYCHOLOGY IN TALKS TO REPORTERS MR PING COULD OFFER ONLY TWO OPTIONS FOR OPEC ONE WOULD BE TO CUT OUTPUT AS SOME MINISTERS HAVE INDICATED AND THE OTHER SAID MR PING WOULD BE TO DO SOMETHING DIFFERENT ASKED WHAT THAT MAY BE MR PING SMILED BUT WOULDN'T TELL OTHER MINISTERS ALSO WERE UNCHARACTERISTICALLY QUIET WHEN QUESTIONED ABOUT THEIR POSSIBLE STRATEGY EVEN GHOLAMREZA AGHAZADEH IRAN'S OIL MINISTER WHO RECENTLY HAD SUGGESTED OPEC CUTS OF UP TO 5 WOULDN'T DISCUSS OUTPUT LEVELS BUT MINISTERS DENIED THEY HAD SOME RADICAL SOLUTION IN HAND THERE IS NO HIDDEN AGENDA SAID ALIRIO PARRA VENEZUELA'S OIL MINISTER SOME DELEGATES SUGGESTED THE MINISTERS WANTED TO AVOID SAYING ANYTHING THAT WOULD FURTHER DEPRESS THE BEARISH OIL MARKET CRUDE PRICES SKIDDED SHARPLY LOWER FOLLOWING MR PING'S REVELATION THAT DURING OCTOBER OPEC MEMBERS HAD PRODUCED 300000 BARRELS A DAY MORE THAN THEIR 245 MILLIONBARREL CEILING MARKET PARTICIPANTS HAD EXPECTED THE GROUP TO REIN IN PRODUCTION IN THE WEEKS PRIOR TO THIS MEETING WHEN MARKET SENTIMENT WAS ALREADY BEARISH PARTICIPANTS ARE POISED TO DUMP THEIR CONTRACTS IF THERE AREN'T ANY STRONG POSITIVE SIGNALS FROM OPEC SAID ROBERT MCNALLY ANALYST FOR ENERGY SECURITY ANALYSIS INC IN WASHINGTON DC MR MCNALLY AND OTHER ANALYSTS SAY OPEC MUST SLASH OUTPUT BY AT LEAST 400000 BARRELS DAILY TO PROP UP PRICES IF THE CUTS AREN'T MADE OIL PRICES WILL DECLINE MORE IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS PLATINUM FUTURES PRICES LED BROAD DECLINES IN PRECIOUS METALS AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JANUARY DELIVERY FELL 680 TO 37410 AN OUNCE GOLD SETTLED YESTERDAY AT 37730 DOWN 1 THE PLATINUM MARKET HAS BEEN WEAKENED IN RECENT WEEKS BY THE RECESSION IN JAPAN AND A SHARP BREAK IN JAPANESE STOCK PRICES ANALYSTS SAID PURCHASES BY JAPANESE CAR MAKERS AMONG THE BIGGEST INDUSTRIAL USERS OF PLATINUM HAVE DECLINED THIS YEAR YESTERDAY A REPORT CIRCULATED THAT A LEADING MANUFACTURER OF AUTOMOBILE CATALYTIC CONVERTERS IN WHICH PLATINUM IS A RAW MATERIAL EXPECTED LOWER PLATINUM USE IN 1994 SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH PRECIOUS METALS PRICES ALSO WERE DRAGGED LOWER BY THE WEAKNESS OF CRUDE OIL WHICH METALS TRADERS INTERPRETED AS AN INDICATION OF A LACK OF INFLATION IN THE WORLD ECONOMY LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES PLUNGED THE DAILY PRICEMOVEMENT LIMIT AFTER THE US AGRICULTURE DEPARTMENT RELEASED A REPORT SHOWING BIGGERTHANEXPECTED STOCKS OF PORK BELLIES OR UNCURED BACON IN COLD STORAGE AT THE CHICAGO MERCANTILE EXCHANGE PORK BELLIES FOR FEBRUARY DELIVERY WERE DOWN TWO CENTS TO 5405 CENTS A POUND THE USDA REPORT ON PORKBELLY STOCKS AS OF NOV 1 SHOWED 146 MILLION POUNDS IN STORAGE ABOUT 15 MILLION MORE THAN THE MARKET EXPECTED SAID CHARLES LEVITT SENIOR MEAT ANALYST FOR ALARON TRADING CORP AFTER TRADING ENDED YESTERDAY HOWEVER THE CHICAGO MERC REPORTED THAT THE ACCUMULATION OF PORK BELLIES IN EXCHANGEAPPROVED WAREHOUSES LAST WEEK WAS ONLY 31 MILLION POUNDS FAR LOWER THAN THE 54 MILLIONPOUND ACCUMULATION A YEAR EARLIER THE REPORT COULD PUSH PRICES HIGHER TODAY MR LEVITT SAID 9311240149 931124 DOW JONES WORLD STOCK INDEX NEW YORK SEVERAL DATA ERRORS WERE CORRECTED IN THE DOW JONES WORLD STOCK INDEX RESULTING IN A RECALCULATION OF THE INDEX SERIES THE NEW INDEX NUMBERS APPEAR IN TODAY'S EDITION OF THE WALL STREET JOURNAL THE LARGEST CHANGES APPEAR IN INDEXES FOR FRANCE ITALY THE NETHERLANDS SPAIN AND THE UK THE WORLD INDEX ITSELF WAS MINIMALLY AFFECTED THE WORLD INDEX CLOSED FRIDAY IN US DOLLAR TERMS AT 11011 RATHER THAN 11008 AS ORIGINALLY REPORTED THE ERRORS WERE RELATED TO CORPORATE ACTION DATA ITEMS WHICH INCLUDE SUCH MATTERS AS STOCK SPLITS AND MERGERS 9311240148 931124 WHO'S NEWS SOTHEBY'S NAMES DIANA D BROOKS 43 PRESIDENT SUCCEEDING MICHAEL AINSLIE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DIANA D BROOKS A FASTRISING EXECUTIVE IN THE ART WORLD WAS NAMED PRESIDENT OF ART AUCTION HOUSE SOTHEBY'S HOLDINGS INC THE PROMOTION OF MRS BROOKS 43 YEARS OLD FROM THE POSITION OF WORLDWIDE HEAD OF AUCTION OPERATIONS MAKES SOTHEBY'S ONE OF THE HANDFUL OF MAJOR COMPANIES TO BE HEADED BY A WOMAN I'M INCREDIBLY EXCITED THAT I'M GOING TO HAVE THE OPPORTUNITY TO HEAD THIS COMPANY OVER THE NEXT 10 YEARS SAID MRS BROOKS WHO IS NICKNAMED DEDE SHE IS A FAMILIAR FIGURE AT THE FRONT OF AUCTION SALES ROOMS WITH HER TRADEMARK BOUFFANT HAIRDO GOLD JEWELRY AND BRIGHTLY HUED BUSINESS SUITS MRS BROOKS JOINED SOTHEBY'S AS DIRECTOR OF CORPORATE FINANCIAL PLANNING IN 1979 AND RAPIDLY ROSE THROUGH THE RANKS RECEIVING SIX PROMOTIONS OVER THE NEXT 13 YEARS NOW SHE TRAVELS ABOUT 60 OF THE TIME MEETING WITH POTENTIAL ART SELLERS AND MANNING THE PHONES WITH KEY BIDDERS AT SOTHEBY'S AUCTIONS ALL OVER THE WORLD SHE IS MARRIED AND HAS TWO CHILDREN THE PROMOTION OF MRS BROOKS WHICH TAKES EFFECT APRIL 1 WILL SIDELINE MICHAEL AINSLIE 50 WHO HAS SERVED AS PRESIDENT OF SOTHEBY'S FOR THE PAST DECADE HE WAS HANDPICKED FOR THAT JOB BY SOTHEBY'S CHAIRMAN AND MAJOR SHAREHOLDER REAL ESTATE DEVELOPER A ALFRED TAUBMAN AFTER MR TAUBMAN'S TAKEOVER OF THE COMPANY IN 1983 MR AINSLIE WILL REMAIN CHAIRMAN OF SOTHEBY'S INTERNATIONAL REALTY UNIT IT WAS MRS BROOKS WHO SIGNED OFF BACK IN 1987 ON SOTHEBY'S SECRET 25 MILLION LOAN TO AUSTRALIAN BUSINESSMAN ALAN BOND THAT ENABLED HIM TO SET A THEN WORLDRECORD ART PRICE OF 539 MILLION FOR VINCENT VAN GOGH'S PAINTING IRISES AT THE TIME MRS BROOKS WHO HAD TRAINED AS A CITICORP LENDING OFFICER WAS HEAD OF SOTHEBY'S NORTH AMERICAN OPERATIONS THE RECORD SALE COMING JUST THREE WEEKS AFTER THE OCTOBER 1987 STOCK MARKET CRASH INJECTED CONFIDENCE INTO THE ART MARKET AND HELPED LAY THE GROUNDWORK FOR THE FRENZIED THREEYEAR ART BOOM THAT FOLLOWED MR BOND LATER WENT BANKRUPT THE LOAN BECAME PUBLIC AND WENT UNPAID AND THE PAINTING WAS SOLD TO THE J PAUL GETTY MUSEUM OF LOS ANGELES YESTERDAY SOTHEBY'S STOCK CLOSED UNCHANGED AT 15 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR AINSLIE REMAINS A LARGE SHAREHOLDER OF SOTHEBY'S WITH MORE THAN 12 MILLION OF THE COMPANY'S 552 MILLION SHARES I HAVE A VERY CRITICAL ROLE TO PLAY IN THE COMPANY IN THE FUTURE MR AINSLIE SAID BUT FOR HIS NEXT JOB HE ADDED HE WOULD LIKE SOMETHING WHERE I'M AN INVESTOR OR CONTROLLING SHAREHOLDER I WANT TO BE IN SOMETHING WHERE I'M CALLING THE SHOTS IN THE FUTURE RUMORS OF MR AINSLIE'S DEPARTURE CIRCULATED AS EARLY AS FEBRUARY WHEN MRS BROOKS WAS NAMED TO THE NEWLY CREATED POSITION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SOTHEBY'S AUCTION OPERATIONS AT THE SAME TIME KEVIN BOUSQUETTE 35 WAS HIRED FROM THE INVESTMENT FIRM OF KOHLBERG KRAVIS ROBERTS & CO TO BE A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR BOUSQUETTE'S FINANCIAL DUTIES MRS BROOKS SAID WILL BE EXPANDED AND A FOURPERSON MANAGEMENT TEAM HAS BEEN NAMED TO RUN THE DAYTODAY AUCTION OPERATIONS IN NEW YORK FOR NOW THE POSITION OF PRESIDENT OF NORTH AMERICAN AND SOUTH AMERICAN OPERATIONS WILL REMAIN EMPTY MR AINSLIE'S RESIGNATION FOLLOWS A SERIES OF MOVES AT THE CONCERN'S EUROPEAN OPERATIONS ANNOUNCED THIS MONTH WHICH PUT SEVERAL EXECUTIVES FAVORED BY MRS BROOKS IN IMPORTANT POSITIONS ACCORDING TO SOTHEBY'S OFFICIALS HENRY WYNDHAM A BRITISH ART DEALER WHOSE DEALERSHIP WAS BACKED BY HENRY KRAVIS OF KKR BECAME CHAIRMAN OF SOTHEBY'S UNITED KINGDOM OPERATIONS RETURNING TO THE FIRM AFTER SERVING AS ITS HEAD OF OLD MASTER PICTURES IN THE EARLY 1980S SIMON DE PURY FORMER CURATOR OF ONE OF THE WORLD'S LEADING ART COLLECTIONS THAT OF BARON THYSSENBORNEMISZA BECAME CHAIRMAN OF SOTHEBY'S EUROPE BEEFING UP THE COMPANY'S BANKING EXPERTISE AND BLUEBLOOD CONNECTIONS LORD CAMOYS DEPUTY CHAIRMAN OF BARCLAYS DE ZOETE WEDD HOLDINGS LTD WILL JOIN SOTHEBY'S APRIL 1 AS DEPUTY CHAIRMAN 9311240147 931124 WHO'S NEWS NEW HEAD OF STATE OF THE ART IRVINE CALIF STATE OF THE ART INC SAID DAVID W HANNA WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN A MONDAY BOARD MEETING THAT RESULTED IN THE ABRUPT DEPARTURE OF DAVID S SAMUELS WHO WAS PREVIOUSLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE POSITION OF PRESIDENT IS VACANT THE COMPANY SAID MR SAMUELS 38 YEARS OLD COULDN'T BE REACHED MR HANNA 54 DECLINED TO SAY WHETHER MR SAMUELS WAS TERMINATED OR RESIGNED THE COMPANY MAKES ACCOUNTING SOFTWARE 9311240146 931124 LEGAL BEAT SUIT SAYS ABA ACCREDITATION IS OUT OF DATE BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL ARE LAW SCHOOLS BEING FORCED BY BAR OFFICIALS TO TEACH THE WRONG THINGS THE WRONG WAY TO THE WRONG PEOPLE THAT QUESTION WILL GET A HARD LOOK IN A LAWSUIT FILED YESTERDAY AGAINST THE AMERICAN BAR ASSOCIATION AND ITS ACCREDITATION OFFICIALS BY A TINY LAW SCHOOL IN ANDOVER MASS THE MASSACHUSETTS SCHOOL OF LAW CLAIMS THAT AT A TIME WHEN THE LEGAL PROFESSION IS UNDER INCREASING ATTACK THE BAR ASSOCIATION IS PENALIZING EFFORTS TO IMPROVE THE FIELD SCHOOL OFFICIALS MAINTAIN THAT INSTEAD OF ENSURING HIGHQUALITY PROGRAMS AND BETTERTRAINED ATTORNEYS THE ABA REQUIREMENTS REWARD SCHOOLS FOR CHURNING OUT THE KIND OF LAWYERS PEOPLE LOVE TO HATE LONG ON THEORY AND SHORT ON PRACTICAL SKILLS THE FIVEYEAROLD SCHOOL HAS WON PRAISE FROM MASSACHUSETTS JUDGES LAWYERS AND GOVERNMENT OFFICIALS FAMILIAR WITH ITS PRACTICEORIENTED TRAINING THE SCHOOL KNOWN AS MSL FEATURES COURSES TAUGHT BY PRACTICING LAWYERS AND INTENSIVE LEGALWRITING INSTRUCTION THE SELECTION PROCESS WHICH ESCHEWS THE TRADITIONAL LAW SCHOOL ADMISSION TEST AIMS TO INCLUDE STUDENTS FROM DIVERSE BACKGROUNDS AND PERVASIVE COSTCONSCIOUSNESS KEEPS ANNUAL TUITION AT 9000 ABOUT HALF THAT OF MOST ACCREDITED LAW SCHOOLS THE SCHOOL SAYS IT'S SUCH QUALITIES WHICH THE FACULTY AND STUDENTS PRAISE AS ADVANTAGES THAT HAVE EARNED IT BLACK MARKS FROM THE ABA ACCREDITATION TEAM IN ITS ANTITRUST SUIT FILED YESTERDAY IN FEDERAL COURT IN PHILADELPHIA MSL SAYS THE ABA GROUP IS ESSENTIALLY A CARTEL THAT CONTROLS COMPETITION AND PROTECTS ITS MEMBERS BY PUNISHING SCHOOLS THAT BREAK RANK WITH MOREEXCLUSIVE INSTITUTIONS THE SUIT CLAIMS THAT THE ACCREDITATION STANDARDS ARE MEANT TO PROTECT THE ECONOMIC INTERESTS OF PROFESSORS LIBRARIANS AND TEST SERVICES RATHER THAN THE EDUCATIONAL NEEDS OF STUDENTS THERE IS NO PROOF WHATSOEVER THAT THE ABA STANDARDS ARE MAKING BETTER LAWYERS SAYS MSL DEAN LAWRENCE R VELVEL THE REAL REASON FOR THE STANDARDS IS TO BETTER THE ECONOMIC POSITION OF LAW PROFESSORS NOT BEING ACCREDITED BY THE ABA IS A GRAVE HANDICAP IN COMPETING FOR LAW STUDENTS MSL SAYS IN ITS COMPLAINT BECAUSE THE SCHOOL WAS ACCREDITED BY MASSACHUSETTS EDUCATION AUTHORITIES IN 1990 ITS GRADUATES CAN TAKE THE BAR EXAM THERE AND IN A HANDFUL OF OTHER STATES BUT IN 42 STATES ONLY STUDENTS FROM ABAACCREDITED LAW SCHOOLS CAN TAKE THE BAR EXAM UPON GRADUATION THAT LINK TO STATES' BAR EXAM REQUIREMENTS IS WHAT GIVES THE ABA ACCREDITATION GROUP ITS ANTICOMPETITIVE CLOUT MSL SAYS IN ITS COMPLAINT BECAUSE ABA ACCREDITATION CONTROLS WHETHER STUDENTS CAN TAKE MOST BAR EXAMS THE ABA GROUP HAS BEEN ABLE TO FORCE SCHOOLS TO BOOST PROFESSORS' SALARIES REDUCE TIME SPENT TEACHING AND PREVENT COMPETITION FROM INNOVATIVE PROGRAMS SUCH AS MSL'S THE LAWSUIT ALLEGES ABA OFFICIALS DECLINED TO COMMENT ON SPECIFIC ALLEGATIONS MADE IN THE LAWSUIT BUT JAMES T HALVERSON A MEMBER OF THE ABA'S BOARD OF GOVERNORS AND A PARTNER AT NEW YORK LAW FIRM SHEARMAN & STERLING DEFENDED THE ACCREDITATION PROCESS AS FAIR AND SOUND SPEAKING FOR THE ASSOCIATION HE SAID THAT IN THE PAST 70 YEARS THE ABA HAS ACCREDITED 176 LAW SCHOOLS OR 88 OF ALL THE INSTITUTIONS THAT HAVE SOUGHT APPROVAL THE ACCREDITATION STANDARDS REPRESENT THE ABA'S BEST JUDGMENT ON WHAT A LAW SCHOOL MUST DO TO PROVIDE QUALITY LEGAL EDUCATION MR HALVERSON SAID THE SCHOOL WAS TREATED JUST AS ANY OTHER SCHOOL THAT IS VISITED BY AN ACCREDITATION COMMITTEE MR HALVERSON ADDED THAT THE ACCREDITATION STANDARDS HAVE CHANGED OVER THE YEARS TO MEET CHANGING NEEDS OF THE PROFESSION BUT MSL SAYS THAT AMONG OTHER THINGS ABA OFFICIALS SAID IT WOULDN'T WIN ACCREDITATION BECAUSE ITS FACULTY IS MADE UP LARGELY OF ADJUNCT PROFESSORS WHO ALSO PRACTICE LAW RATHER THAN FULLTIME ACADEMICS MSL SAID IT ALSO WAS TOLD THAT IT DIDN'T MEET ABA REQUIREMENTS THAT LAW SCHOOLS PAY SALARIES COMPETITIVE WITH OTHER LAW SCHOOLS IN THE REGION AND LIMIT THE AMOUNT OF TIME PROFESSORS SPEND ACTUALLY TEACHING DEAN VELVEL SAYS THE STANDARDS ARE BIASED IN FAVOR OF PROGRAMS THAT TEACH LEGAL THEORY AT THE EXPENSE OF SUCH PRACTICAL SKILLS AS DRAFTING CONTRACTS OR NEGOTIATING AGREEMENTS HE SAYS PUTTING A PREMIUM ON THE DISCUSSION OF THEORY AND THE WRITING OF LAWJOURNAL ARTICLES DOESN'T HELP MOST LAW STUDENTS MORE THAN HALF OF WHOM ARE LIKELY TO GO TO WORK AT SMALL LAW FIRMS OR GOVERNMENT OFFICES WHERE SUCH THEORETICAL CONCERNS ARE MINIMAL PEOPLE IN MOST LAW SCHOOLS TODAY ARE BEING TAUGHT BY PEOPLE WHO DON'T KNOW THE LIFE THESE STUDENTS WILL HAVE AND DON'T HAVE THE SKILLS THE STUDENTS WILL NEED DEAN VELVEL SAYS MSL SAYS THE ACCREDITATION STANDARDS ALSO DON'T TAKE INTO ACCOUNT THE NEEDS OF MANY OF THE SCHOOL'S STUDENTS WHO TEND TO BE OLDER PROFESSIONALS LOOKING TO CHANGE CAREERS OR WORKINGCLASS PEOPLE PUTTING THEMSELVES THROUGH SCHOOL DAVID R CHENELLE FOR INSTANCE APPLIED TO MSL IN 1992 AFTER HE WAS LAID OFF BY GENERAL DYNAMICS CORP WITH AN MBA AND A MASTER'S DEGREE IN COMPUTER SCIENCE MR CHENELLE 36 YEARS OLD WAS CONFIDENT HE COULD HANDLE LAW SCHOOL BUT WITH THREE CHILDREN TO SUPPORT HE DIDN'T HAVE EXTRA MONEY TO SPEND OR THE TIME MOST SCHOOLS' ADMISSION POLICIES REQUIRED MR CHENELLE IS WORKING AS A CLERK AT HIS BROTHER'S LAW OFFICE IN LOWELL MASS WHILE HE ATTENDS SCHOOL AND HE PLANS TO JOIN THE FOURLAWYER FIRM AFTER HE GRADUATES MSL IS PREPARING ME WITH THE TOOLS I NEED TO PRACTICE HE SAYS ALTHOUGH HIS BROTHER'S LAW FIRM IS DOMINATED BY BOSTON UNIVERSITY GRADUATES HE SAYS I'M ABLE TO CONVERSE AND PARTICIPATE EQUALLY WITH THEM CRITICS ALSO SAY THE ABA'S STANDARDS PRESSURE LAW SCHOOLS TO FORGO CHANGES THAT WOULD BENEFIT STUDENTS FOR INSTANCE ABA ACCREDITATION REQUIRES LAW SCHOOLS TO MAINTAIN AND STAFF HUGE LIBRARIES OF HARDCOVER VOLUMES OF STATUTES AND DECISIONS ALTHOUGH ELECTRONIC LEGAL DATABASES MAKE THEM UNNECESSARY THE ABA GROUP ALSO BARS SCHOOLS FROM PROVIDING FORCREDIT COURSES THAT PREPARE STUDENTS FOR TAKING THE BAR EXAM PEOPLE WITHOUT IVY LEAGUE BACKGROUNDS FROM STATE COLLEGE SYSTEMS THOSE KINDS OF PEOPLE ARE FINDING IT HARD TO GET INTO LAW SCHOOL AND HAVE GIVEN UP TRYING SAYS DEAN VELVEL WHO ESTIMATES THAT THE ABA ACCREDITATION REQUIREMENTS RESULT IN LAWSCHOOL TUITIONS THAT ARE 40 TO 50 HIGHER THAN THEY OTHERWISE WOULD BE THE LARGEST LIBEL VERDICT IN NEW YORK HISTORY 155 MILLION AGAINST CAPITAL CITIES/ABC INC WAS THROWN OUT BY THE STATE'S HIGHEST COURT WHICH ORDERED A NEW TRIAL THE COURT OF APPEALS REACHED ITS DECISION IT SAID BECAUSE THE TRIAL JUDGE HAD GIVEN FAULTY INSTRUCTIONS TO THE JURY THE CASE INVOLVED A BUFFALO TELEVISION NEWS BROADCAST THAT MISTAKENLY LINKED A NIAGARA FALLS RESTAURANT OWNER TO ORGANIZED CRIME HAD THE 1991 TRIAL AWARD BEEN UPHELD IT WOULD HAVE BEEN THE BIGGEST LIBEL VERDICT IN THE NATION TO WITHSTAND APPELLATE REVIEW THE APPEALS COURT SAID THE TRIAL JUDGE WRONGLY TOLD THE JURY TO MAKE CERTAIN PRESUMPTIONS THAT AMOUNTED TO A DIRECTIVE TO BELIEVE ONE WITNESS OVER ANOTHER THIS IS NOT SOME ISOLATED INSIGNIFICANT FEATURE OF THE CASE THE COURT SAID IT CUTS TO THE HEART OF THE CRITICAL ELEMENTS NECESSARY TO PREVAIL IN SUCH CASES ALTHOUGH THE COURT RULED AGAINST PLAINTIFF JOHN PROZERALIK IT DID REACH SOME CONCLUSIONS THAT MR PROZERALIK'S LAWYER JOHN J WALSH SAID WERE FAVORABLE FOR EXAMPLE THE COURT FOUND THAT THE JURY COULD REASONABLY HAVE CONCLUDED THAT THE TELEVISION STATION ACTED RECKLESSLY IN AIRING THE CHARGE SAID MR WALSH OF CADWALADER WICKERSHAM & TAFT NUMEROUS NEWS ORGANIZATIONS FILED BRIEFS SUPPORTING CAPITAL CITIES/ABC INCLUDING DOW JONES & CO WHICH PUBLISHES THE WALL STREET JOURNAL DEMOCRATIC PARTY ATTORNEYS IN THE LAWSUIT ENVELOPING POLITICAL CONSULTANT EDWARD ROLLINS APPEAR TO BE FOCUSING ON MONEY SPENT IN NEW JERSEY'S TWO LARGEST URBAN AREAS JERSEY CITY AND NEWARK GERALD KROVATIN WHO REPRESENTS THE NEW JERSEY DEMOCRATIC STATE COMMITTEE AND THE DEMOCRATIC NATIONAL COMMITTEE ASKED US DISTRICT COURT JUDGE DICKINSON DEBEVOISE ON MONDAY FOR THE RIGHT TO CONDUCT SWORN INTERVIEWS WITH FIVE INDIVIDUALS INCLUDING THE FORMER PROSECUTOR IN ESSEX COUNTY WHICH INCLUDES NEWARK AND A DEPUTY MAYOR OF JERSEY CITY THE DEMOCRATS ALSO ASKED TO QUESTION TWO FORMER CAMPAIGN STAFF MEMBERS OF NEW JERSEY GOVERNORELECT CHRISTINE TODD WHITMAN AND A CONSULTANT TO THE NEW JERSEY REPUBLICAN STATE COMMITTEE ALL OF WHOM WERE MENTIONED BY MR ROLLINS IN HIS DEPOSITION FRIDAY JUDGE DEBEVOISE DEFERRED THE REQUEST UNTIL DEC 7 WHEN HE WILL HEAR ARGUMENTS FOR DISMISSING THE LAWSUIT FROM THE STATE REPUBLICAN PARTY ONE OF THE DEFENDANTS THE SUIT SEEKS TO OVERTURN THE RESULTS OF THE NEW JERSEY GUBERNATORIAL ELECTION THAT MS WHITMAN WON BY FEWER THAN 28000 VOTES MEANWHILE THERE IS A NEW CHARGE THAT MR ROLLINS HAS LIED IN HIS ACCOUNTS OF THE VOTESUPPRESSION CONTROVERSY JAMES CARVILLE WHO WAS THE CHIEF POLITICAL STRATEGIST FOR DEFEATED DEMOCRATIC GOV JIM FLORIO ASSERTED THAT DESPITE DENIALS MR ROLLINS HAD CONFIDED IN A PRIVATE CONVERSATION SHORTLY AFTER THE ELECTION THAT MONEY WAS USED TO SUPPRESS THE DEMOCRATIC VOTE IN NEW JERSEY MR CARVILLE SAID THAT IN A CONVERSATION WITH HIS FIANCE GOP POLITICAL STRATEGIST MARY MATALIN MR ROLLINS SAID SOMETHING ABOUT HAVING PAID OFF CAMPAIGN WORKERS TO KEEP THE VOTE LOW THAT PRIVATE CONVERSATION OCCURRED SEVERAL DAYS BEFORE MR ROLLINS FIRST MADE A SIMILAR PUBLIC DECLARATION DURING A MEETING WITH REPORTERS MR CARVILLE SAID IN AN INTERVIEW WITH THE PHILADELPHIA INQUIRER MS MATALIN GAVE THE SAME ACCOUNT SAYING MR ROLLINS BRAGGED TO HER OF HAVING PAID OFF BLACK MINISTERS IN THE DEPOSITION LAST WEEK MR ROLLINS WAS ASKED WHETHER HE HAD SAID SUCH A THING TO MS MATALIN IN THEIR PRIVATE CONVERSATION MR ROLLINS FLATLY DENIED THAT HE HAD MR ROLLINS ALSO DENIED WIDESPREAD REPORTS THAT HE HAD MADE SIMILAR REMARKS AT A WASHINGTONAREA DINNER PARTY THE DEMOCRATS ARE SCHEDULED TO QUESTION WEBSTER TODD JR MS WHITMAN'S BROTHER AND ONETIME CAMPAIGN MANAGER TODAY IN NEWARK BARRING EXTRAORDINARY DEVELOPMENTS THE ELECTION IS EXPECTED TO BE CERTIFIED MONDAY BY THE NEW JERSEY SECRETARY OF STATE FOREIGN LAWYERS WHO ARE LICENSED TO PRACTICE IN THEIR OWN COUNTRIES CAN BECOME PARTNERS IN NEW YORK LAW FIRMS UNDER GUIDELINES ADOPTED BY THE STATE'S HIGHEST COURT THE NEW RULES FOR SOCALLED FOREIGN LEGAL CONSULTANTS ARE BELIEVED TO BE THE FIRST IN THE US SPECIFICALLY TO ADDRESS THE PARTNERSHIP ISSUE A FOREIGN LEGAL CONSULTANT IS LICENSED TO ADVISE US CLIENTS ON THE LAW IN THE FOREIGN ATTORNEY'S COUNTRY BUT CAN'T GIVE LEGAL ADVICE ON STATE OR FEDERAL LAW ALTHOUGH A FEW US LAW FIRMS HAVE ADDED FOREIGN LEGAL CONSULTANTS AS PARTNERS SUCH ARRANGEMENTS HAVE RAISED QUESTIONS BECAUSE BAR RULES HAVE NEVER ADDRESSED THE ISSUE THE NEW RULE PART OF A COMPREHENSIVE SET OF GUIDELINES ON FOREIGN LEGAL CONSULTANTS IS EXPECTED TO ENCOURAGE MORE FOREIGN LAWYERS TO PRACTICE IN NEW YORK SAID ASSOCIATE JUDGE RICHARD D SIMONS OF THE NEW YORK COURT OF APPEALS IN RETURN OTHER COUNTRIES ARE CONSIDERED MORE LIKELY TO EASE THEIR OWN RULES AFFECTING US LAWYERS ABROAD NEW YORK LAW FIRMS HAVE URGED US VERY STRENUOUSLY TO ADDRESS THIS JUDGE SIMONS SAID WE THINK IT WILL EXPAND OPPORTUNITIES FOR NEW YORK LAW FIRMS IN OTHER COUNTRIES ABOUT 180 FOREIGN LEGAL CONSULTANTS CURRENTLY PRACTICE IN NEW YORK MAINLY IN NEW YORK CITY EARLIER THIS YEAR THE COURT OF APPEALS SAID THAT WHEN A STATE COURT LICENSES A FOREIGN LEGAL CONSULTANT IT CAN TAKE INTO ACCOUNT WHETHER NEW YORK LAWYERS ARE ALLOWED TO PRACTICE IN THE FOREIGN LAWYER'S COUNTRY A FEDERAL PROSECUTOR DESCRIBED FORMER COOPER COS COCHAIRMAN GARY A SINGER AS DRIVEN BY GREED AND ARROGANCE IN A JUNKBOND TRADING SCHEME THAT ALLEGEDLY GARNERED HIM AND HIS FAMILY ALMOST 35 MILLION AT THE EXPENSE OF SHAREHOLDERS THE 38YEAROLD MR SINGER BROKE THE LAW FOR THE THRILL OF THE GAME SAID ASSISTANT US ATTORNEY SCOTT A EDELMAN IN AN OPENING STATEMENT TO THE JURY IN FEDERAL DISTRICT COURT IN NEW YORK BUT ATTORNEYS FOR BOTH MR SINGER AND THE PUBLICLY TRADED FORT LEE NJ COMPANY ALSO A DEFENDANT SAID THEIR CLIENTS HAVE BEEN FALSELY ACCUSED BY G ALBERT GRIGGS JR A FORMER JUNKBOND ANALYST AT THE KEYSTONE FUNDS WHO PLEADED GUILTY TO TWO CRIMINAL COUNTS AND IS EXPECTED TO TESTIFY AGAINST THE DEFENDANTS MR SINGER IS CHARGED WITH MAIL AND WIRE FRAUD MONEY LAUNDERING CONSPIRACY AND RACKETEERING THE MEDICALPRODUCTS COMPANY IS CHARGED WITH CONSPIRACY MAIL AND WIRE FRAUD AND SECURITIESLAW VIOLATIONS THE TRIAL WHICH IS EXPECTED TO LAST ABOUT THREE WEEKS IS TO RESUME MONDAY JUNDA WOO AND MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9311240145 931124 US STEEL IMPORTS ROSE 173 IN SEPTEMBER FROM AUGUST'S LEVEL WASHINGTON US STEEL IMPORTS ROSE 173 IN SEPTEMBER FROM AUGUST AND WERE UP 356 FROM SEPTEMBER 1992 SEPTEMBER IMPORTS TOTALED 1875000 TONS COMPARED WITH 1599000 TONS IN AUGUST AND 1383000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS SEPTEMBER IMPORTS REPRESENTED 209 OF CONSUMPTION UP FROM 183 IN AUGUST AND UP FROM 173 IN SEPTEMBER OF LAST YEAR STEEL IMPORTS FOR THE FIRST NINE MONTHS OF THIS YEAR TOTALED 13355000 TONS UP 51 FROM 12711000 TONS IN THE COMPARABLE YEAREARLIER PERIOD IMPORT PENETRATION WAS 175 OF THE MARKET COMPARED WITH 178 FOR THE FIRST NINE MONTHS OF 1992 9311240144 931124 SEACOR TO BUY FRENCH VESSELS MORGAN CITY LA SEACOR HOLDINGS INC SAID IT AGREED TO BUY 10 OFFSHORE TOWING SUPPLY VESSELS FROM COMPAGNIE NATIONALE DE NAVIGATION OF PARIS FOR 335 MILLION IN CASH AND NOTES SEACOR HOLDINGS WHICH OPERATES MARINE VESSELS THAT SERVE THE ENERGY INDUSTRY ALSO SAID IT EXPANDED ITS MARKETING AGREEMENT WITH A UNIT OF THE FRENCH SHIPPING CONCERN THE COMPANIES WILL WORK TOGETHER TO MARKET THE SERVICES OF 27 SHIPS PRIMARILY FOR THE OFFSHORE OIL AND GAS BUSINESS IN AFRICA THE MIDDLE EAST LATIN AMERICA AND EVENTUALLY ASIA 9311240143 931124 CLINTON CALLS ON NORTH KOREA TO ADHERE TO NUCLEAR PLEDGES IN BID TO END SPLIT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID THE DOOR WILL BE OPEN TO A NEW RELATIONSHIP WITH NORTH KOREA IF THAT NATION ENDS ITS NUCLEAR WEAPONS PROGRAM AND HONORS ITS PLEDGES TO ADHERE TO ANTIPROLIFERATION AGREEMENTS THE US TODAY PLANS TO OFFER ITS IDEAS TO NORTH KOREA AT A MEETING IN NEW YORK OF MIDLEVEL OFFICIALS FROM THE TWO NATIONS US OFFICIALS SAID FOLLOWING A TWOHOUR WHITE HOUSE MEETING WITH SOUTH KOREAN PRESIDENT KIM YOUNG SAM MR CLINTON SAID THAT WE ARE PREPARED TO DISCUSS WITH NORTH KOREA A THOROUGH BROAD APPROACH TO THE ISSUES THAT DIVIDE US AND ONCE AND FOR ALL TO RESOLVE THE NUCLEAR ISSUE IN DEFERENCE TO HIS SOUTH KOREAN GUEST WHO DIDN'T WANT TO APPEAR TOO CONCILIATORY TOWARD PYONGYANG MR CLINTON AVOIDED DISCUSSING SPECIFIC STEPS THE US IS PREPARED TO TAKE TO TRY TO DIFFUSE THE THREAT TO THE KOREAN PENINSULA BUT BOTH LEADERS EXPRESSED A SENSE OF URGENCY WITHOUT SETTING ANY FIRM DEADLINES THEY MADE CLEAR THAT THE IMMEDIATE CAUSE OF THE TENSIONS NORTH KOREA'S DECISION TO BAR INTERNATIONAL INSPECTIONS OF ITS NUCLEAR FACILITIES MUST BE RESOLVED SOON THE US AND SOUTH KOREA BELIEVE THAT THE INSPECTION ISSUE NEEDS TO BE RESOLVED WITHIN A MATTER OF WEEKS OR AT MOST SEVERAL MONTHS OUR CONFIDENCE IN THE SAFEGUARDS INSPECTIONS HAS ALREADY BEEN ERODED ONE US OFFICIAL SAID BOTH PRESIDENTS ALSO MADE CLEAR THAT THEY WOULD LIKE TO AVOID GOING TO THE UNITED NATIONS TO IMPOSE ECONOMIC SANCTIONS ON NORTH KOREA DURING A WHITE HOUSE NEWS CONFERENCE AND LATER IN AN INTERVIEW WITH THE WALL STREET JOURNAL PRESIDENT KIM SAID THAT NORTH KOREA COULDN'T BE COUNTED ON TO ACT RATIONALLY PRESIDENT KIM CALLED PYONGYANG THE MOST UNCERTAIN REGIME IN THE WHOLE WORLD HE BELIEVES THAT CHINA CAN INFLUENCE NORTH KOREA AND SAID THAT CHINA'S PRESIDENT TOLD HIM RECENTLY THAT IT ALREADY WAS UNDERTAKING SUCH EFFORTS PRESIDENT KIM ALSO PAINTED A GRIM PICTURE OF HIS BITTER ENEMY TO THE NORTH SAYING NORTH KOREA'S HARVEST WAS DOWN 40 TO 50 FROM LAST YEAR'S PALTRY LEVELS MANY FACTORIES HAD STOPPED OPERATING AND THAT PEOPLE WERE SURVIVING ON ONE OR TWO SKIMPY MEALS A DAY AS REPORTED THE US PLANS TO TELL NORTH KOREA THAT IT MUST PERMIT THE RESUMPTION OF INTERNATIONAL INSPECTIONS THAT MONITOR ITS NUCLEAR SITES AND RESUME ITS DIALOGUE WITH SOUTH KOREA INCLUDING THE EXCHANGE OF ENVOYS ON DENUCLEARIZATION ISSUES ONCE IT TAKES THOSE STEPS THE US WOULD CALL FOR SUSPENSION NEXT YEAR OF ITS ANNUAL JOINT MILITARY EXERCISE WITH SOUTH KOREA SEOUL IS EXPECTED TO GO ALONG WITH THE RECOMMENDATION US OFFICIALS SAID FURTHER THE US WOULD RESUME ITS HIGHLEVEL TALKS WITH NORTH KOREA AND BEGIN DISCUSSING BROAD NUCLEAR AND OTHER SECURITY ISSUES THESE DISCUSSIONS IN TURN WOULD LEAD TO SUCH SUBJECTS AS ECONOMIC AID FOR NORTH KOREA AND EVEN THE PROSPECT OF DIPLOMATIC RELATIONS WITH THE US AMERICAN OFFICIALS EMPHASIZED HOWEVER THAT SUCH IDEAS HAVEN'T BEEN FULLY WORKED OUT WITH THE OUTLINES OF THIS PLAN ALREADY IN PLACE YESTERDAY'S PUBLIC DIPLOMACY FOCUSED ON ATMOSPHERICS AND HONING THE DETAILS PRESIDENT KIM IS THE FIRST FOREIGN LEADER TO BE HOSTED BY MR CLINTON AT A FORMAL WHITE HOUSE DINNER AN HONOR INTENDED TO SEND A SIGNAL OF SOLIDARITY TO NORTH KOREA FURTHER THE TWO LEADERS CAREFULLY WORKED OUT THE LANGUAGE OF THEIR JOINT STATEMENTS TO MAKE THE US ACTIONS SEEM LESS CONCILIATORY THAN THE PREVIOUS US APPROACH FOR INSTANCE THE TWO LEADERS REFUSED TO MAKE A LINK BETWEEN NORTH KOREA'S BEHAVIOR AND THE SUSPENSION OF THE MILITARY EXERCISE SAYING INSTEAD THAT THE TWO ALLIES WOULD REEXAMINE OUR SECURITY APPROACH AFTER NORTH KOREA FULFILLED ITS PART OF THE BARGAIN THE US ALSO STOPPED REFERRING TO THE SECOND STAGE OF THE PLAN AS A COMPREHENSIVE PACKAGE BECAUSE MR KIM SAID IT GIVES THE IMPRESSION THAT SOMETHING DRAMATIC AND COMPREHENSIVE WILL HAPPEN AS PART OF A QUID PRO QUO US OFFICIALS CONCEDE PRIVATELY THAT THEY HAVE SOFTENED THEIR APPROACH BECAUSE MONTHS OF HARDLINE NEGOTIATING WITH PYONGYANG DIDN'T PRODUCE RESULTS AND ALTHOUGH THEY AREN'T CONFIDENT THAT PUTTING THE CARROTS AHEAD OF THE STICKS WILL SUCCEED THEY DON'T SEE A GOOD ALTERNATIVE NEITHER PRESIDENT KIM NOR I ARE ANXIOUS TO GO TO THE UNITED NATIONS AND ASK FOR SANCTIONS AGAINST NORTH KOREA MR CLINTON SAID 9311240142 931124 ADVERTISING MINORITIES PLAY THE HERO IN MORE TV ADS AS CLIENTS DISCOVER MULTICULTURAL SELLS BY LEON E WYNTER STAFF REPORTER OF THE WALL STREET JOURNAL SCHICK'S LATEST TELEVISION COMMERCIAL STARS THE TYPICAL AMERICAN MAN ONLY THIS MAN HAS SEVERAL FACES ASIAN CAUCASIAN AND AFRICANAMERICAN DISSOLVING INTO EACH OTHER IN FRONT OF THE SHAVING MIRROR THE AD REPRESENTS A TRANSFORMATION IN MORE WAYS THAN ONE UNTIL RECENTLY MINORITIES' ROLES IN MAINSTREAM TV ADS WERE PRETTY PREDICTABLE BLACK CELEBRITIES LIKE RAY CHARLES AND MICHAEL JORDAN WERE CAST AS THEMSELVES BUT IF MINORITIES DIDN'T HAVE HOUSEHOLD NAMES THEY WERE USUALLY BEHIND TYPEWRITERS OR AIRLINE COUNTERS AS THE SCHICK COMMERCIAL SHOWS THAT'S CHANGING WHILE HISPANICS AND ASIANS STILL HAVE RELATIVELY FEW LEADING ROLES BLACKS ARE INCREASINGLY THE STARS IN TELEVISION COMMERCIALS PORTRAYING CHARACTERS INCLUDING HIGHPOWERED EXECUTIVES THAT USED TO BE OFF LIMITS FOR PEOPLE OF COLOR THEY ARE EVEN BREAKING INTO PERSONALPRODUCT ADVERTISING LONG SEEN AS TOO SENSITIVE FOR NONWHITES FOR MANY ADVERTISERS THE RATIONALE FOR CASTING BLACKS GOES WELL BEYOND THE SYMBOLIC SCHICK SAYS DAVID MCSPADDEN THE COMPANY'S ACCOUNT EXECUTIVE AT J WALTER THOMPSON JUST WANTED TO BE TRUER TO THE MARKETPLACE AND TRUER TO YOUNGER PEOPLE'S PERCEPTION THAT THEY ARE LIVING IN A MULTICULTURAL WORLD THE AD USES A SPECIAL EFFECT KNOWN AS MORPHING THAT SEAMLESSLY BLENDS THE RACES ON SCREEN WE SAW IMMEDIATE SALES GROWTH WHEN WE INTRODUCED IT SAYS MR MCSPADDEN AS A GROUP THE CHARACTERS SEEM APPROACHABLE AND LIKABLE WHY HAS IT TAKEN SO LONG BBDO VICE PRESIDENT DOUG ALLIGOOD SAYS THAT THE ADVERTISING INDUSTRY TENDS TO BE MORE CONSERVATIVE AND RISK AVERSE THAN MOST PEOPLE BELIEVE WE'RE DEALING WITH OTHER PEOPLE'S MONEY IT'S THE CLIENT THAT SETS THE TONE SAYS MR ALLIGOOD WHO IS BLACK AND SUPERVISES RESEARCH ON MINORITY AND OTHER NICHE MARKETS WHAT HAS TAKEN THE CLIENTS SO LONG IN THE EARLY DAYS CERTAIN ASSUMPTIONS WERE MADE MR ALLIGOOD SAYS LIKE YOU CANNOT SHOW A BLACK PERSON IN A SUPERIOR POSITION BECAUSE YOU WILL OFFEND SOUTHERN WHITES AND THAT YOU OFFEND BLACKS IF THEY'RE SHOWN AS SUBSERVIENT THE SAFEST COURSE HE SAYS WAS NOT TO SHOW BLACKS AT ALL THERE WAS NO RESEARCH MR ALLIGOOD ADDS IT WAS BLIND PREJUDICE THE IMPETUS TO CAST MINORITIES IN LEADING ROLES IN COMMERCIALS ALSO COMES FROM A NEW UNDERSTANDING AMONG ADVERTISERS THAT WHITES AND MINORITIES CAN BE REACHED BY THE SAME ADS PEPSI FOR EXAMPLE IS MAKING A FUNDAMENTAL MIND SHIFT TO STOP THINKING ABOUT ETHNIC MARKETING AS PERIPHERAL AND THINK ABOUT IT AS THE CORE BUSINESS SAYS MARKETING CHIEF JEFF CAMPBELL HE POINTS OUT THAT A THIRD OF PEPSI'S YOUNG CONSUMERS ARE BLACK AND HISPANIC PEPSI ELIMINATED ITS SEPARATE ETHNIC MARKETING DEPARTMENT LAST YEAR AND IN AUGUST IT DISMISSED ITS BLACK AND HISPANIC AD AGENCIES TO CONCENTRATE ITS LIMITED ETHNIC TV ADVERTISING WITH BBDO AT THE END OF THE DAY WE NEED ONE IMAGE FOR THE PRODUCT THAT IS POWERFUL FOR EVERYBODY SAYS PEPSI ACCOUNT EXECUTIVE JEFF MORDOS OF BBDO THIS YEAR A BBDO DIET PEPSI COMMERCIAL PLACED THE POPULAR BLACK UH HUH GIRLS ON A BEACH IN BIKINIS WHERE THEY WERE APPROACHED BY TWO WHITE MALES BREAKING THE TABOO AGAINST SUGGESTING INTERRACIAL SEXUAL ATTRACTION FRUIT OF THE LOOM TOOK A SIMILAR LEAP INTO INTIMATE TERRITORY WHEN IT PUT BLACK BOXER RIDDICK BOWE IN HIS UNDERWEAR IN ONE OF ITS NATIONAL ADS THIS YEAR FEDERAL EXPRESS RECENTLY FEATURED A BLACK FEMALE EXECUTIVE BEATING OUT HER WHITE MALE ADVERSARIES IN A CONFERENCECALL SHOWDOWN OVER A HIGHSTAKES DEAL THE WOMAN WAS MODELED AFTER A REAL FEDEX MANAGER WHO IS BLACK BOB MILLER FEDEX'S MARKETING VICE PRESIDENT NOTES THAT WOMEN OFTEN MINORITY WOMEN FREQUENTLY MAKE A COMPANY'S DECISION ABOUT WHICH PACKAGE SERVICE TO USE THE FEDEX COMMERCIAL IS INTENDED TO APPEAL TO WOMEN WHO ASPIRE TO HAVE MORE CONTROL IN THE WORKPLACE HE SAYS THESE COMMERCIALS ARE PERFORMING BETTER THAN ANY WE'VE DONE IN THE LAST 10 YEARS MR MILLER SAYS WE JUST THINK ABOUT THE MARKET THOSE ARE OUR CUSTOMERS REAL PEOPLE IN REAL SITUATIONS THAT'S HOW THEY DRESS AND THAT'S HOW THEY LOOK THE NEW LOOK IN ADS IS ALSO AIMED AT ANOTHER CONSTITUENCY EMPLOYEES COMPANIES COMMITTED TO ATTRACTING A DIVERSE WORK FORCE WANT TO PROJECT THAT IMAGE IN THEIR ADVERTISING FEDEX PRESCREENS EACH AD FOR 90000 EMPLOYEES ON ITS INHOUSE CABLETV SYSTEM AND SOLICITS FEEDBACK AND XEROX IS RUNNING AN AD DEPICTING A BLACK WOMAN AS AN ASSERTIVE PROBLEMSOLVING XEROX SALESPERSON IT'S VERY IMPORTANT FOR ANY SERVICE COMPANY THAT EMPLOYEES SEE THEIR REFLECTION AND ARE PROUD OF THE WAY THE COMPANY IS SHOWN ON TV SAYS MICHAEL KIRBY DIRECTOR OF WORLDWIDE STRATEGIC ADVERTISING FOR XEROX AN AD FOR USAIR FEATURES A BLACK WOMAN EXECUTIVE ON HER WAY TO DELIVER AN IMPORTANT SPEECH WHILE MOST BUSINESS PASSENGERS ARE WHITE MALES A WORLDCLASS AIRLINE SHOULD PROJECT AMERICAN DIVERSITY SAYS PATRICIA DEWEY USAIR SENIOR DIRECTOR FOR ADVERTISING AND SALES PROMOTION NOT ONLY WILL WE PERHAPS GET MORE MINORITY REVENUE MS DEWEY SAYS WE'LL GET MORE LOYALTY FROM THE GENERAL POPULATION BECAUSE THAT IS WHAT THEY WANT TO SEE OF COURSE THERE ARE STILL MANY TV ADS THAT SLIGHT OR IGNORE BLACKS A TOURISM AD FOR ARUBA FOR EXAMPLE DEPICTS A WHITE COUPLE FROLICKING ON A BEACH WITH NONWHITES BARELY VISIBLE IN THE BACKGROUND THE ISLAND IS PREDOMINANTLY NONWHITE HEY WHOSE ISLAND IS THIS ANYWAY THE MAN ASKS THE ANSWER ARUBA AN ISLAND ALL YOUR OWN MARCIAL F IBARRA DIRECTOR OF THE ARUBA TOURIST AUTHORITY IN NORTH AMERICA SAYS THAT RACE WASN'T AN ISSUE IN THE AD I'M AIMING TO FILL MY ROOMS IF THE WHITES DO IT THEN GO FOR THE WHITES HE SAYS I'M SCARED TO CHANGE THAT AND FEW COMPANIES FOLLOWED LEVI STRAUSS'S LEAD IN THE MID1980S WHEN IT AIRED DOCUMENTARYSTYLE COMMERCIALS SHOWING PEOPLE OF DIFFERENT RACES AS EQUALS WEARING ITS 501 JEANS PEOPLE WERE SHOCKED BY THE REALISM BECAUSE MOST ADVERTISING AT THAT TIME WAS STORYSCRIPTED BLONDES ON THE BEACH PLAYING VOLLEYBALL RECALLS LEVI'S MANAGER OF CORPORATE MARKETING DAN CHEW ADVERTISERS STILL FEEL MUCH MORE COMFORTABLE CASTING BLACKS THAN OTHER MINORITIES IN TV ADS ASIANS ARE SEEN AS A FAST GROWING BUT STILL TINY MARKET HISPANIC MARKETING IS STILL DRIVEN BY SPANISH LANGUAGE MEDIA ADVERTISERS ARE WARY ABOUT DEPICTING THE TYPICAL HISPANIC IN ENGLISHLANGUAGE ADS WHEN YOU'RE DEALING WITH BLACKS VS WHITES IT'S VERY OBVIOUS WITH HISPANICS IT'S A LITTLE TRICKIER SAYS MR MORDOS OFTEN WE CAST HISPANICS BUT IN A COMMERCIAL WITH QUICK CUTS IT CAN BE VERY HARD TO SEE HE ADDS DEMOCRATIC REP HENRY WAXMAN OF CALIFORNIA INTRODUCED A BILL YESTERDAY THAT WOULD REQUIRE TOBACCO COMPANIES TO DEVOTE THE TOP FOURTH OF THEIR PRINT ADS TO A HEALTH WARNING THE BILL WOULD ALSO BAN ADVERTISING FOR CIGARETTES AND OTHER TOBACCO PRODUCTS FROM AUDIO AND VIDEO TAPES DISKS AND FILMS IN ADDITION THE BILL WOULD PROHIBIT TOBACCO ADVERTISING IN ANY SPORTS STADIUM LOCATED WITHIN 2000 FEET OF A SCHOOL ATTENDED BY STUDENTS UNDER AGE 18 TRADE ORGANIZATIONS REPRESENTING ADVERTISERS AND THEIR AGENCIES SAID THE BILL AMOUNTED TO A BAN ON TOBACCO ADVERTISING ICE BEER PHILIP MORRIS'S MILLER BREWING SAID IT PLANS TO PUT ICEHOUSE BEER INTO NATIONAL DISTRIBUTION BY EARLY JANUARY NATIONAL TELEVISION RADIO AND PRINT ADS FROM THE CHICAGO OFFICE OF YOUNG & RUBICAM ARE EXPECTED TO BREAK SOON THEREAFTER MILLER RIVAL ANHEUSERBUSCH PREVIOUSLY ANNOUNCED PLANS TO PUT ITS COMPETING BRAND ICE DRAFT INTO NATIONAL DISTRIBUTION BY FEBRUARY 9311240141 931124 INTERNATIONAL INVESTORS AND S&P SEE MEXICO MOVING TOWARD INVESTMENTGRADE CREDIT RATING BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO APPEARS TO BE MOVING TOWARD AN INVESTMENTGRADE CREDIT RATING IN THE MINDS OF INVESTORS AND AT LEAST ONE RATING AGENCY FOLLOWING THE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT LAST WEEK INVESTORS BOUGHT THE FIRST ISSUE OF 30YEAR BONDS SOLD BY MEXICO IN RECENT HISTORY THE 250 MILLION BOND ISSUE WAS SOLD BY PETROLEOS MEXICANOS THE STATEOWNED OIL COMPANY FOLLOWING THE NAFTA VOTE IN THE US CONGRESS STANDARD & POOR'S CORP CHANGED ITS OUTLOOK ON MEXICO TO POSITIVE FROM STABLE S&P SAID MEXICO COULD RISE TO AN INVESTMENTGRADE RATING IN EARLY 1994 S&P RATES MEXICAN DEBT DOUBLEBPLUS A NOTCH BELOW INVESTMENT GRADE AN S&P COMMITTEE WILL VISIT MEXICO SOON TO REVIEW THE NATION'S CREDIT STATUS THE RATINGS ADDRESS MEXICAN DEBTS DENOMINATED IN DOLLARS AND OTHER FOREIGN CURRENCIES PESO DEBTS ARE GENERALLY VIEWED AS INVESTMENT GRADE INVESTORS ARE WILLING TO TAKE THE PLUNGE THEY ARE SAYING THAT MEXICO IS INVESTMENT GRADE WHETHER THE RATING AGENCIES RECOGNIZE THAT OR NOT SAYS IGNACIO SOSA MANAGING DIRECTOR IN CHARGE OF EMERGINGMARKET SALES AT BANKERS TRUST CO A COMANAGER IN THE PEMEX DEAL LEAD UNDERWRITER GOLDMAN SACHS & CO PRICED THE PEMEX BOND AT 22 PERCENTAGE POINTS OVER A CORRESPONDING US TREASURY ISSUE A LOWER PRICE THAN MOST HIGHRISK JUNK BOND BORROWERS WITH MEXICO'S CREDIT RATING NORMALLY PAY LACEY GALLAGHER SOVEREIGN RISK ANALYST FOR S&P SAYS THE AGENCY IS LOOKING AT THE CONSOLIDATION OF ECONOMIC REFORMS AND POLITICAL SUPPORT FOR THEM IN MEXICO BUT MOODY'S INVESTORS SERVICE INC THE SECOND PRINCIPAL US CREDIT RATING AGENCY ISN'T CHANGING THE OUTLOOK ON ITS BA2 MEXICAN RATING TWO NOTCHES BELOW INVESTMENT GRADE NAFTA'S IMPACT DOESN'T SEEM SO UNAMBIGUOUSLY POSITIVE FOR MEXICO'S ECONOMY OR POLITICAL OUTLOOK SAYS DAVID LEVEY ASSOCIATE DIRECTOR AT MOODY'S MOODY'S IS CONCERNED THAT THOUSANDS OF MEXICAN WORKERS COULD BE DISPLACED AS UNCOMPETITIVE BUSINESSES SHUT DOWN MEXICO'S RELIANCE ON FOREIGN CAPITAL AND THE COUNTRY'S LARGE LEVEL OF EXTERNAL DEBT IS ALSO TROUBLESOME MOODY'S SAYS MEXICO STILL HAS A BAD HANGOVER FROM ITS 1980S BORROWING BINGE TOTAL EXTERNAL DEBT OR DEBTS OWED BY THE GOVERNMENT AND PRIVATE COMPANIES WILL REACH 1337 BILLION THIS YEAR OR 2 1/2 TIMES TOTAL EXPORTS S&P ESTIMATES THAT RATIO IS HIGHER THAN IN DEVELOPING NATIONS SUCH AS THE PHILIPPINES OR VENEZUELA RATINGS BY BOTH AGENCIES HAVE A LARGE IMPACT ON MEXICO'S ACCESS TO FOREIGN CAPITAL BILLIONS OF US INVESTMENT DOLLARS ARE RESTRICTED FROM INVESTING IN ANYTHING BUT INVESTMENTGRADE DEBT COMPANIES TYPICALLY CAN'T RECEIVE A HIGHER CREDIT RATING THAN THEIR HOME COUNTRY ON FOREIGN BORROWINGS SO AN INVESTMENTGRADE RATING WOULD ALSO MAKE BILLIONS OF DOLLARS AVAILABLE TO MEXICAN CORPORATE BORROWERS AND PROBABLY AT A LOWER COST THAN TODAY'S RATES 9311240140 931124 ENTERPRISE FOCUS ON FRANCHISING FRANCHISE LAWS HIT FIRMS WITHOUT FORMAL PROGRAMS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL FRANCHISE LAWS STING SOME FIRMS THAT DIDN'T KNOW THEY ARE FRANCHISERS AS MORE STATES PASS BROADLY WRITTEN FRANCHISE LAWS MANY COMPANIES BESIDES THOSE WITH FORMAL FRANCHISING PROGRAMS FIND THAT THEY HAVE NEW LEGAL WORRIES FOR EXAMPLE FEDERAL JUDGE PETER C DORSEY IN NEW HAVEN CONN LAST MONTH HELD THAT SB THOMAS INC A TOTOWA NJ BAKEDGOODS UNIT OF CPC INTERNATIONAL INC HAD VIOLATED CONNECTICUT'S FRANCHISE LAW THOMAS LAST APRIL HAD MOVED TO ALTER THE TERRITORIES OF ITS INDEPENDENT DISTRIBUTORS IN CONNECTICUT IN TWO LAWSUITS A TOTAL OF 10 DISTRIBUTORS THEN SOUGHT TO BLOCK OR OVERTURN CHANGES AFFECTING THEM IN PART THE PLAINTIFFS CITED PROTECTION IN THE STATE'S FRANCHISING LAW AGAINST ARBITRARY TERMINATIONS OF FRANCHISES DENYING WRONGDOING THE COMPANY ARGUED THAT IT ISN'T EVEN A FRANCHISER AND HAD NEVER SOLD FRANCHISES BUT JUDGE DORSEY SAID THE DISTRIBUTORS ARE NONETHELESS COVERED BY THE FRANCHISE LAW LARGELY BECAUSE THOMAS PRESCRIBES THEIR MARKETING PLAN PAUL RUSZCZYK A CHESHIRE CONN LAWYER FOR THREE OF THE PLAINTIFFS SAID THE DECISION COULD BENEFIT MANY OTHER CONNECTICUT CONTRACTORS DELIVERY PEOPLE AND WHOLESALERS SPECIALISTS SAY FRANCHISE LAWS ARE PROVING TO HAVE A SURPRISINGLY BROAD SCOPE WRITING IN THE NEW YORK LAW JOURNAL LAST FEBRUARY NEW YORK ATTORNEY DAVID J KAUFMANN SAID COURTS HAVE HELD CERTAIN LIMOUSINE OPERATORS APPLIANCE DISTRIBUTORS AND OFFICEFURNITURE DEALERS TO BE FRANCHISEES EVEN THOUGH NONE OF THOSE BUSINESSES SOLD FRANCHISES A CPC SPOKESWOMAN SAYS THOMAS WILL APPEAL THE CONNECTICUT CASE COLLECTIVE BARGAINING OF FRANCHISE AGREEMENTS GAINS ATTENTION FRANCHISEE ADVOCATES SAY FRANCHISE CONTRACTS OFTEN FAVOR FRANCHISERS AND WOULD GIVE RISE TO FEWER DISPUTES IF THEY WERE COLLECTIVELY BARGAINED THE AMERICAN ASSOCIATION OF FRANCHISEES AND DEALERS SAN DIEGO SAYS FEW FRANCHISE SYSTEMS HAVE EVER TRIED FORMAL COLLECTIVE BARGAINING ON CONTRACTS BUT TACO JOHN'S INTERNATIONAL INC MADE AN EXCEPTION RECENTLY POSSIBLY BLAZING A TRAIL FOR OTHERS TACO JOHN'S A CHEYENNE WYO FRANCHISER OF QUICKSERVICE RESTAURANTS BARGAINED WITH A GROUP OF ITS FRANCHISEES TO WRITE A NEW CONTRACT BOTH SIDES HOPE IT WILL REPLACE THE SYSTEM'S EXISTING CONTRACTS THE COMPANY SAYS THE NEW VERSION WOULD INCREASE FRANCHISEE PROTECTION GRANTING EXCLUSIVE TERRITORIES FOR EXAMPLE WHERE PREVIOUS CONTRACTS MADE NO SUCH EXPLICIT PROMISE BUT THE CONTRACT ALSO WOULD INCREASE MANDATED ADVERTISING COSTS FOR SOME FRANCHISEES THE COMPANY WITH ABOUT 430 FRANCHISED UNITS IS ASKING FRANCHISEES TO GIVE UP THEIR EXISTING CONTRACTS AND SWITCH TO THE NEW ONE ABOUT HALF OF THE FRANCHISEES SO FAR HAVE INDICATED THEY WILL DO SO BEGINNING NEXT YEAR TACO JOHN'S ADDS DENNIS E BATTEEN AN ABERDEEN SD FRANCHISEE WHO HEADS A FRANCHISEE ASSOCIATION FOR THE CHAIN SAYS FRANCHISEES ARE TICKLED TO DEATH THIS IS A MUCH BETTER AGREEMENT BUT COLLECTIVE BARGAINING WOULD BE IMPRACTICAL IF ONE SIDE DOESN'T WANT CHANGE ATTORNEYS SAY ERIK B WULFF AN ATTORNEY IN WASHINGTON DC ALSO ARGUES THAT COLLECTIVE BARGAINING OF FRANCHISE CONTRACTS MAY POSE ANTITRUST PROBLEMS FOR EXAMPLE COLLECTIVELY BARGAINED TERRITORIAL PROTECTIONS MIGHT BE SEEN AS ILLEGALLY BLOCKING NEW ENTRANTS TO THE MARKET MR WULFF SUGGESTS CAR CHECKERS SETTLES FEDERAL CHARGES THAT IT DECEIVED FRANCHISEES EVEN IN A RISING TIDE OF ALLEGATIONS OF FRANCHISING ABUSE CAR CHECKERS OF AMERICA INC HAS GAINED SPECIAL ATTENTION IN FEDERAL COURT IN TRENTON NJ THE FEDERAL TRADE COMMISSION LAST FEBRUARY ACCUSED CAR CHECKERS A BRIDGEWATER NJ FRANCHISER OF MOBILE AUTOMOBILEINSPECTION SERVICES OF PURSUING AN UNUSUAL SCHEME TO MISLEAD PROSPECTIVE FRANCHISEES ASKED FOR REFERENCES CAR CHECKERS ALLEGEDLY STEERED PROSPECTS TO PURPORTED SUCCESSFUL FRANCHISEES IN DAVENPORT IOWA AND WICHITA KAN ACCORDING TO THE FTC THE FRANCHISEES WERE SHILLS NOW CAR CHECKERS ALONG WITH SISTER FRANCHISER AUTO CHECKERS INTERNATIONAL INC AND THE OWNERS OF THE TWO SYSTEMS LEE AND WENDY MANDELL GELLER HAVE AGREED TO SETTLE THE CHARGES THE FTC LAST WEEK SAID THE DEFENDANTS HAD CONSENTED TO REFRAIN FROM MISREPRESENTATIONS INCLUDING ANY FALSE CLAIMS THAT ANY PERSON IS A CURRENT OR FORMER FRANCHISEE THE SETTLEMENT WHICH DOESN'T CONSTITUTE AN ADMISSION OF LAW VIOLATIONS IS SUBJECT TO THE COURT'S APPROVAL CAR CHECKERS HAS CURTAILED ITS OPERATIONS THE FTC SAYS COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT THE COMPANY'S FORMER TELEPHONE NUMBER IN BRIDGEWATER HAS BEEN DISCONNECTED SEEKING SYNERGIES VIDEO DISTRIBUTOR RENTRAK CORP PORTAND ORE LAST MONTH ACQUIRED PRO IMAGE INC A BOUNTIFUL UTAH FRANCHISER OF SHOPS THAT SELL GIFTS AND APPAREL FOR SPORTS FANS RENTRAK PLANS TO SELL SPORTS VIDEOS THROUGH THE PRO IMAGE SHOPS THIS MONTH RENTRAK SIGNED A LETTER OF INTENT TO ACQUIRE CERTAIN ASSETS OF ANOTHER SUCH SHOP OPERATOR AND FRANCHISER WC BRADLEY CO IN COLUMBUS GA GOING PUBLIC SYLVAN LEARNING SYSTEMS INC MOVES TO JOIN THE TREND WITH THE MARKET FOR INITIAL PUBLIC OFFERINGS AT A FEVER PITCH MORE FRANCHISERS HAVE BEEN JUMPING IN SYLVAN A COLUMBIA MD FRANCHISER OF TUTORIAL SERVICES FOR SCHOOLAGE CHILDREN AIMS TO SELL AT LEAST 18 MILLION SHARES THROUGH UNDERWRITERS ALEX BROWN INC AND ROBERTSON STEPHENS & CO IN ADDITION EXISTING SHAREHOLDERS WOULD UNLOAD 200000 SHARES THE PUBLIC WOULD WIND UP WITH A TOTAL STAKE OF APPROXIMATELY 25 THE NET PROCEEDS TO SYLVAN ARE EXPECTED TO TOTAL AT LEAST 179 MILLION A PRELIMINARY PROSPECTUS SAYS THE MONEY WOULD BE USED TO REPAY DEBT AND SUPPORT EXPANSION LARGELY IN COMPUTERBASED TEST DELIVERY THE DOCUMENT SAYS THE COMPANY HAS MORE THAN 300 FRANCHISEES INCLUDING FRANCHISEROWNED UNITS THE CHAIN HAS MORE THAN 500 OUTLETS IN THE FIRST NINE MONTHS OF THIS YEAR THE FRANCHISER'S REVENUE SURGED 60 TO 132 MILLION FROM A YEAR EARLIER BUT SYLVAN SAYS IT HASN'T GENERATED POSITIVE CASH FLOW FROM OPERATIONS SINCE 1990 THE FRANCHISER HAS ACCUMULATED A DEFICIT OF ABOUT 93 MILLION IN 14 YEARS THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL ACHIEVE PROFITABILITY ON A SUSTAINABLE BASIS THE PROSPECTUS ADDS DURING THE FIRST NINE MONTHS OF 1993 41 FRANCHISED UNITS OPENED AND 14 CLOSED BRIEFS MALAYSIA'S PRIME MINISTER HOPING TO ATTRACT NEW INVESTMENT IN THE SOUTHEAST ASIAN NATION WILL OFFICIATE AT A FRANCHISING CONFERENCE JAN 2527 IN THE CAPITAL KUALA LUMPUR JAKE'S PIZZA INTERNATIONAL INC IN ADDISON ILL AND VANNA WHITE SAY THEY HAVE TENTATIVELY AGREED FOR THE WHEEL OF FORTUNE STAR TO INVEST IN FRANCHISES AND SERVE AS A SPOKESWOMAN FOR THE CHAIN 9311240139 931124 RULE OF LAW A TAXANDSPEND LEGISLATURE IGNORES THE VOTERS BY THEODORE B OLSON THE CLEAR MESSAGE IN ELECTION AFTER ELECTION THIS YEAR HAS BEEN THAT THE PEOPLE ARE ANGRY AT POLITICIANS WHO FAIL TO REDUCE TAXES AND GOVERNMENT SPENDING THIS MESSAGE WAS EVIDENT IN THE ELECTION OF CANDIDATES WHO CAMPAIGNED AGAINST TAX INCREASES AND FOR LIMITED GOVERNMENT IN TEXAS NEW JERSEY AND VIRGINIA IT WAS ALSO CLEAR IN WASHINGTON STATE WHERE VOTERS APPROVED INITIATIVE 601 A MEASURE LIMITING INCREASES IN STATE SPENDING TO POPULATION GROWTH AND INFLATION UNFORTUNATELY IT IS EQUALLY CLEAR THAT POLITICIANS MAY BETRAY THE VOTERS ONCE THE ELECTION IS BEHIND THEM THE CLINTON ADMINISTRATION IS FURIOUSLY BACKPEDALING ON ITS PROMISES TO AGREE TO ADDITIONAL SPENDING CUTS THIS FALL AND SEN JOSEPH BIDEN ANNOUNCED EARLIER THIS MONTH THAT THE SAVINGS IF THERE ARE ANY RESULTING FROM CUTS IN THE FEDERAL WORK FORCE PROMISED BY VICE PRESIDENT GORE'S REINVENTING GOVERNMENT PROJECT WILL GO TO MAKE THE STREETS SAFER RATHER THAN TO REDUCE THE DEFICIT MEANWHILE POLITICIANS AT THE STATE LEVEL ARE FOLLOWING A SIMILAR COURSE EXHIBIT A IS THE STATE OF CONNECTICUT ON ELECTION DAY 1992 THE DAY BILL CLINTON WAS ELECTED ON A PROMISE OF A MIDDLECLASS TAX CUT 81 OF CONNECTICUT VOTERS APPROVED A CONSTITUTIONAL SPENDING CAP SIMILAR TO WASHINGTON'S PROVIDING THAT STATE BUDGET INCREASES WOULD BE LIMITED TO THE INFLATION RATE OR THE INCOMEGROWTH RATE WHICHEVER IS HIGHER ANY GREATER BUDGET INCREASE WOULD REQUIRE A DECLARATION OF AN EMERGENCY BY THE GOVERNOR AND APPROVAL BY 60 OF THE LEGISLATURE SINCE THE CAP'S RATIFICATION HOWEVER THE CONNECTICUT LEGISLATURE HAS REFUSED TO PASS THE SIMPLE IMPLEMENTING LEGISLATION NECESSARY TO EFFECTUATE THE CAP THUS A FULL YEAR AFTER ITS OVERWHELMING APPROVAL BY THE VOTERS CONNECTICUT'S CONSTITUTIONAL SPENDING CAP LACKS ANY FORCE EXCEPT AS A DEPRESSING WARNING TO THOSE WHO WOULD TRUST POLITICIANS TO COMPLY WITH THE WISHES OF THE PEOPLE THE BEHAVIOR OF CONNECTICUT POLITICIANS IN EVADING THAT STATE'S CAP HAS BEEN PARTICULARLY BRAZEN IN 1991 GOV LOWELL WEICKER AND KEY LEGISLATIVE DEMOCRATS PROPOSED THE STATE'S FIRSTEVER INCOME TAX AND AGREED TO A CONSTITUTIONAL LIMITATION ON SPENDING IN A BID FOR THE SUPPORT OF THE LAST RELUCTANT LEGISLATORS NEEDED TO PASS THE TAX AT THAT TIME GOV WEICKER AND THE DEMOCRATS ARGUED THAT THE CAP WOULD PROVIDE A FIRM CHECK AGAINST ANY ABUSE OF THE POWERFUL NEW TAX THE CAP'S CLEAR WORDING APPEARED TO ENSURE THIS THE LEGISLATURE SHALL NOT INCREASE GENERAL BUDGET EXPENDITURES BY A PERCENTAGE WHICH EXCEEDS THE GREATER OF THE PERCENTAGE INCREASE IN PERSONAL INCOME OR THE PERCENTAGE INCREASE IN INFLATION TO PREVENT ANY DOUBT AS TO ITS COVERAGE THE CAP ALSO COMMANDED THAT THE LEGISLATURE BY LAW DEFINE THE TERM GENERAL BUDGET EXPENDITURES THIS SEEMINGLY INNOCUOUS DETAIL HAS PROVEN TO BE THE CAP'S ACHILLES' HEEL IN 1993 WITH INCOME TAX REVENUES POURING IN THE QUESTION AROSE WHAT WOULD HAPPEN IF THE LEGISLATURE DID NOT BY LAW DEFINE THE TERM GENERAL BUDGET EXPENDITURES IN A HIGHLY ANTICIPATED OPINION THE STATE ATTORNEY GENERAL CONCLUDED THAT SO LONG AS THE LEGISLATURE DECLINES TO DEFINE GENERAL BUDGET EXPENDITURES THE CONSTITUTIONAL SPENDING CAP REMAINS INOPERATIVE SO MUCH FOR THE SPENDING CAP ALTHOUGH A BILL DEFINING THE TERM GENERAL BUDGET EXPENDITURES DID NOT COME UP FOR A VOTE IN THE STATEHOUSE A NEW BUDGET INCREASING SPENDING BY 72 DID IT PASSED THE 72 INCREASE FUELED BY NEW INCOME TAX REVENUES WAS CONSIDERABLY GREATER THAN INFLATION OR INCOME GROWTH AND EXCEEDED THE PREVIOUS THREE ANNUAL INCREASES WHICH AVERAGED 48 IRONICALLY THE OVERWHELMING RATIFICATION OF A CONSTITUTIONAL SPENDING CAP ACTUALLY HERALDED AN ACCELERATION IN SPENDING RESPONDING TO THIS SITUATION REPUBLICAN STATE REP MARK NIELSEN AND SEVERAL TAXPAYERS HAVE FILED A LAWSUIT NAMING THE LEGISLATURE AND THE STATE AS DEFENDANTS THE SUIT SEEKS A JUDICIAL DECREE THAT THE LEGISLATURE EITHER DEFINE GENERAL BUDGET EXPENDITURES BY THE CONCLUSION OF THE 1994 LEGISLATIVE SESSION OR BE FORCED TO LIVE WITHIN THE CONFINES OF THE 1992 BUDGET UNTIL IT DOES DESPITE THIS MEASURED APPROACH MR NIELSEN'S EFFORT HAS EARNED LITTLE MORE THAN A SMIRK IN THE LOCAL PRESS THE INITIAL STORY IN THE HARTFORD COURANT THE STATE'S LARGEST NEWSPAPER APPEARED UNDER THE HEADING LAWMAKER SUING SELF AND QUESTIONED WHETHER MR NIELSEN AS A GRADUATE OF HARVARD LAW SCHOOL KNOWS WHAT HE IS DOING THE SAME NEWSPAPER HAS EXPRESSED DOUBT ABOUT WHETHER THE CONSTITUTIONAL SPENDING CAP HAS THE NECESSARY POLITICAL SUPPORT TO BE EFFECTIVE APPARENTLY AN 81 STATEWIDE VOTE DOES NOT MEASURE UP AS ADEQUATE POLITICAL SUPPORT MR NIELSEN'S OPPONENTS HAVE SHOWN SIMILAR DISINTEREST IN THE SERIOUS ISSUE OF ACCOUNTABILITY RAISED BY THE CASE CONNECTICUT LIBERALS WHO HAVE NEVER BEFORE SEEN A LAWSUIT AGAINST THE STATE THAT THEY DIDN'T LIKE AND WHO HAD ALWAYS BEEN APPALLED AT THE SUGGESTION THAT THE COURTROOM DOOR MIGHT BE SHUT ON ANY WORTHY GROUP OR INDIVIDUAL HAVE SUDDENLY REDISCOVERED THE VIRTUES OF THE DOCTRINES OF SOVEREIGN IMMUNITY SEPARATION OF POWERS AND STANDING THE DEMOCRATIC SPEAKER OF THE HOUSE FOR INSTANCE INSISTS THAT THE LEGISLATURE'S ARROGANT REFUSAL TO EFFECTUATE THE CAP DESERVES DEFERENCE IN THE COURTS THE CLAIM OF SOVEREIGN IMMUNITY IS PARTICULARLY MISDIRECTED MORE THAN 80 YEARS AGO JUSTICE OLIVER WENDELL HOLMES WROTE A SOVEREIGN IS EXEMPT FROM SUIT NOT BECAUSE OF ANY FORMAL CONCEPTION OR OBSOLETE THEORY BUT ON THE LOGICAL AND PRACTICAL GROUND THAT THERE CAN BE NO LEGAL RIGHT AS AGAINST THE AUTHORITY THAT MAKES THE LAW ON WHICH THE RIGHT DEPENDS FROM THIS REASONING HAS GROWN A WELLKNOWN EXCEPTION TO SOVEREIGN IMMUNITY RECOGNIZING CLAIMS BASED ON CONSTITUTIONAL RIGHTS RIGHTS ORDAINED BY THE PEOPLE THEMSELVES IT IS DIFFICULT TO THINK OF A SITUATION THAT WOULD BETTER DEMONSTRATE THE WISDOM OF THAT EXCEPTION VOTERS IN CONNECTICUT HAVE ATTEMPTED TO ENFORCE THEIR WILL BY ENACTING A CONSTITUTIONAL LIMITATION ON THE SPENDING POWERS OF GOVERNMENT BUT THAT HAS NOT BEEN ENOUGH TO OVERPOWER THE ENTRENCHED ARROGANCE AND CONTEMPT OF MANY OF THEIR ELECTED REPRESENTATIVES IT WILL TAKE THE HELP OF THE COURTS TO ENSURE THAT THE MESSAGE OF CONNECTICUT TAXPAYERS IS HEARD AND FOLLOWED BY THE POLITICIANS OF THAT STATE MR OLSON A WASHINGTON ATTORNEY IS ASSISTING THE ATLANTIC LEGAL FOUNDATION WHICH REPRESENTS A GROUP OF TAXPAYERS SUING TO ENFORCE THE CONNECTICUT CONSTITUTIONAL SPENDING CAP 9311240138 931124 WHO'S NEWS COMPRESSION LABS INC COMPRESSION LABS INC SAN JOSE CALIF FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR ISSUANCE OF UP TO 2434900 SHARES THE COMPANY WHICH DEVELOPS AND MARKETS TECHNOLOGY FOR COMPRESSING FULLMOTION VIDEO TRANSMISSION SAID IT PLANS TO SELL 700000 TO ONE MILLION SHARES TO FLETCHER CAPITAL MARKETS INC THE REMAINDER MAY BE SOLD BY A SHAREHOLDER THOMSON CONSUMER ELECTRONICS SA COMPRESSION LABS STOCK CLOSED DOWN 375 CENTS AT 1325 IN NASDAQ STOCK MARKET TRADING YESTERDAY 9311240137 931124 TECHNOLOGY LEGISLATORS' BILL EASES RESTRAINTS ON BABY BELLS BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO POWERFUL HOUSE COMMITTEE CHAIRMEN PROPOSED LEGISLATION THAT WOULD ALLOW REGIONAL TELEPHONE COMPANIES TO PROVIDE LONGDISTANCE PHONEEQUIPMENT MANUFACTURING AND ELECTRONICINFORMATION SERVICES THE MEASURE IS THE SECOND TELECOMMUNICATIONS BILL TO BE INTRODUCED IN AS MANY DAYS ON MONDAY A BIPARTISAN GROUP OF HOUSE MEMBERS INTRODUCED LEGISLATION THAT WOULD PREEMPT MOST LOCAL RESTRICTIONS ON CROSSOWNERSHIP OF TELEPHONE AND CABLETELEVISION SYSTEMS UNDER THE BROOKSDINGELL BILL THE BELLS WOULD HAVE TO WAIT ONE YEAR BEFORE SEEKING PERMISSION TO MANUFACTURE TELEPHONE EQUIPMENT AND FIVE YEARS BEFORE SEEKING TO ENTER THE LONGDISTANCE BUSINESS AFTER THAT THEY WOULD HAVE TO SUBMIT THEIR PLANS TO BOTH THE JUSTICE DEPARTMENT AND THE FEDERAL COMMUNICATIONS COMMISSION THE JUSTICE DEPARTMENT WOULD REVIEW THE PLANS TO ASSURE THAT THEY WOULDN'T BE ANTICOMPETITIVE THE FCC WOULD CONSIDER WHETHER THE PLANS ARE IN THE PUBLIC INTEREST THE COMMISSION'S DELIBERATIONS WOULD INCLUDE THE IMPACT OF THE PLANS ON CONVENIENCE AND RATES THE BELLS PROBABLY COULD CLEAR REGULATORY REVIEWS WITHIN TWO YEARS AFTER THE END OF THE WAITING PERIODS REP BROOKS CHAIRMAN OF THE JUDICIARY COMMITTEE SPONSORED LEGISLATION LAST YEAR THAT WOULD HAVE GIVEN JURISDICTION OVER THE BABY BELLS' EXPANSION ONLY TO THE JUSTICE DEPARTMENT REP DINGELL CHAIRMAN OF THE ENERGY AND COMMERCE COMMITTEE SOUGHT FCC INVOLVEMENT HEARINGS IN BOTH COMMITTEES SHOULD BEGIN NEXT YEAR WE HAVE SUCCEEDED IN CRAFTING A BALANCED BILL AND IT IS MY INTENTION TO BRING THE BILL BEFORE A FULL HOUSE FOR A VOTE EARLY IN THE NEXT SESSION REP DINGELL SAID THE BILL IS CERTAINLY A STEP IN THE RIGHT DIRECTION SAID RL MICKEY MCGUIRE CHAIRMAN OF A BELLS' TASK FORCE THAT URGES LEGISLATION TO REMOVE THE 1982 RESTRICTIONS BRADLEY STILLMAN LEGISLATIVE COUNSEL FOR THE CONSUMER FEDERATION OF AMERICA SAID HE HOPES ALL PLANS WILL BE CONSIDERED WORKS IN PROGRESS OPEN TO CHANGES THAT WOULD BETTER PROTECT THE PUBLIC THE CLINTON ADMINISTRATION WHICH IS EXPECTED TO STUDY THE VARIOUS BILLS MAY SUBMIT ITS OWN PROPOSAL EARLY NEXT YEAR 9311240136 931124 ADMINISTRATION PROPOSES COMBINING FOUR US AGENCIES' BANKING FUNCTIONS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PROPOSED CONSOLIDATING THE BANKREGULATORY FUNCTIONS OF FOUR AGENCIES INTO A SINGLE FEDERAL BANKING COMMISSION UNDER THE DIRECTION OF A FIVEMEMBER BOARD THE AMBITIOUS SCHEME WOULD COMBINE THE OFFICE OF THE COMPTROLLER OF THE CURRENCY WHICH REGULATES ABOUT 3600 NATIONAL BANKS AND THE OFFICE OF THRIFT SUPERVISION WHICH REGULATES ABOUT 1800 SAVINGS AND LOANS IN ADDITION THE NEW COMMISSION WOULD TAKE OVER THE REGULATORY FUNCTIONS OF THE FEDERAL DEPOSIT INSURANCE CORP AND THE FEDERAL RESERVE BOARD THE FDIC WHICH CURRENTLY SUPERVISES 7500 STATECHARTERED BANKS WOULD CONTINUE TO PROVIDE DEPOSIT INSURANCE AND TO CLOSE FAILED BANKS THE FED WHICH REGULATES ABOUT 1000 STATECHARTERED BANKS AND 6300 BANKHOLDING COMPANIES WOULD REMAIN RESPONSIBLE FOR MONETARY POLICY IT ALSO WOULD CONTINUE TO OPERATE THE BANKPAYMENTS SYSTEM BY WHICH MONEY IS MOVED BETWEEN BANKS AND TO PROVIDE LIQUIDITY TO THE BANKING SYSTEM THE PROPOSAL PART OF THE ADMINISTRATION'S PLAN TO STREAMLINE GOVERNMENT ALREADY HAS STRONG SUPPORT IN CONGRESS THE CHAIRMEN AND RANKING REPUBLICANS ON BOTH THE HOUSE AND SENATE BANKING COMMITTEES HAVE ANNOUNCED REGULATORYCONSOLIDATION PLANS YESTERDAY SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH SAID HE WOULD MAKE REGULATORY CONSOLIDATION A TOP PRIORITY NEXT YEAR BUT THE FED IMMEDIATELY ATTACKED THE PROPOSAL IT'S THE LONGHELD CONVICTION OF THE BOARD THAT A HANDSON ROLE IN BANKING SUPERVISION IS ESSENTIAL TO CARRYING OUT THE FEDERAL RESERVE'S RESPONSIBILITIES FOR THE STABILITY OF THE FINANCIAL SYSTEM AND IS VITAL FOR THE EFFECTIVE CONDUCT OF MONETARY POLICY THE FED SAID IN A STATEMENT THE CENTRAL BANK HAS HELPED DERAIL SIMILAR REGULATORYCONSOLIDATION PROPOSALS IN THE PAST CURRENTLY SOME LARGE BANKING ORGANIZATIONS HOLDING COMPANIES THAT OWN NATIONAL BANKS STATE BANKS AND THRIFTS ARE REGULATED BY ALL FOUR AGENCIES AND CAN BE EXAMINED BY DIFFERENT TEAMS EACH YEAR IT JUST MAKES NO SENSE TO HAVE FOUR REGULATORY AGENCIES OVERLAPPING TREASURY SECRETARY LLOYD BENTSEN SAID IN ANNOUNCING THE ADMINISTRATION'S PLAN WHAT WE HAVE NOW SLOWS THE ECONOMY BY ADDING LAYERS OF REGULATION HE ADDED MR BENTSEN CALLED THE ADMINISTRATION'S PLAN UNPRECEDENTED IN THAT SOME FEDERAL AGENCIES WILL BE GIVING UP SOME TURF THAT REMAINS TO BE SEEN THERE HAVE BEEN NINE ATTEMPTS TO CONSOLIDATE BANKREGULATORY AGENCIES SINCE WORLD WAR II AND ALL HAVE FAILED ONE REASON IS THAT MANY SMALL BANKS LIKE THE CURRENT SYSTEM THEY BELIEVE THEY HAVE MORE INFLUENCE WITH THE FED AND THE FDIC THAN THEY WOULD WITH ONE SINGLE REGULATOR MOREOVER WITHOUT A PUSH FROM THE BANKING INDUSTRY MANY MEMBERS OF CONGRESS CONSIDER CONSOLIDATION A TECHNICAL AND COMPLICATED ISSUE AND AS IT APPARENTLY DOES IN THIS CASE THE FED OPPOSED MANY OF THE EARLIER PLANS THE ADMINISTRATION HAS TRIED TO MEET THE FED'S OBJECTIONS IT WOULD GIVE THE FED CHAIRMAN A SEAT ON THE FIVEMEMBER BOARD OF THE FEDERAL BANKING COMMISSION ALONG WITH THE TREASURY SECRETARY OR HIS REPRESENTATIVE AND THREE MEMBERS APPOINTED BY THE PRESIDENT AND CONFIRMED BY THE SENATE ONE OF THESE THREE MEMBERS WOULD BE THE COMMISSION'S CHAIRMAN AND WOULD SERVE A FOURYEAR TERM THAT WOULD EXPIRE IN THE MARCH FOLLOWING A PRESIDENTIAL ELECTION THE OTHER TWO MEMBERS WOULD SERVE STAGGERED FIVEYEAR TERMS BOTH THE FED AND THE FDIC WOULD HAVE ACCESS TO ALL EXAMINATION REPORTS AND OTHER SUPERVISORY INFORMATION AND STATES WOULD REMAIN THE PRIMARY REGULATORS OF BANKS THEY CHARTER ALTHOUGH IT'S BELIEVED CONSOLIDATION WOULD REDUCE THE REGULATORY BURDEN ON BANKS BANKERS DIDN'T IMMEDIATELY EMBRACE THE PROPOSAL A SPOKESMAN FOR CITICORP THE NATION'S LARGEST BANKING ORGANIZATION SAID WE WOULD LIKE TO START WITH AGREEMENT ON WHAT THE FINANCIALSERVICES SYSTEM SHOULD BE FOR OUR FUTURE AND THEN DECIDE WHAT'S AN EFFICIENT WAY OF REGULATING IT THE CITICORP COMMENT SUGGESTS THAT BIG BANKS MIGHT TRY TO USE THE CONSOLIDATION BILL AS A VEHICLE FOR MEETING OTHER GOALS SUCH AS REMOVAL OF RESTRICTIONS ON INTERSTATE BANKING KENNETH GUENTHER THE EXECUTIVE VICE PRESIDENT OF THE INDEPENDENT BANKERS ASSOCIATION SAID THE CHANGE WOULD GIVE COMMUNITY BANKS A LESS PROMINENT SEAT AT THE TABLE EDWARD YINGLING CHIEF LOBBYIST FOR THE AMERICAN BANKERS ASSOCIATION SAID THAT MANY BANKERS LIKE THE IDEA OF REDUCING REGULATORY DUPLICATION BUT THAT THE PROPOSAL COULD RAISE PROBLEMS ONE CONCERN IS THAT IT MIGHT CREATE PRESSURE TO MERGE THE DEPOSIT INSURANCE FUNDS FOR BANKS AND THRIFTS FORCING BANKS TO BEAR SOME OF THE COST OF THE THRIFT BAILOUT 9311240135 931124 BUSINESS BRIEFS SUPERIOR INDUSTRIES INTERNATIONAL INC VAN NUYS CALIF PLANS TO BUILD A 32 MILLION CHROMEPLATING FACILITY NEXT TO ITS FAYETTEVILLE ARK WHEEL PLANT THE NEW PLANT WILL REPLACE A SMALL PLATING PLANT BIRMINGHAM STEEL CORP COMPLETED ITS 52 MILLION ACQUISITION OF AMERICAN STEEL & WIRE CORP IN CLEVELAND AMERICAN STEEL & WIRE STOCKHOLDERS WILL RECEIVE ABOUT 605 A SHARE CONSISTING OF A MIX OF BIRMINGHAM STEEL COMMON STOCK AND CASH PRAXAIR INC PLANS TO EXPAND ITS HELIUMPRODUCTION FACILITY IN ULYSSES KAN DOUBLING THE PLANT'S TOTAL ANNUAL CAPACITY TO ABOUT 12 BILLION CUBIC FEET WESTERN CO OF NORTH AMERICA SIGNED A LETTER OF INTENT TO ACQUIRE UNICHEM INTERNATIONAL INC TERMS WEREN'T DISCLOSED CURTICEBURNS FOODS COMPLETED SALES OF TWO DIVISIONS THE OAT MILLING PORTION OF ITS NATIONAL OATS DIVISION TO RALSTON PURINA CO AND CERTAIN ASSETS OF ITS HILAND POTATO CHIP CO TO WEAVER POTATO CHIP OF LINCOLN NEB TERMS WEREN'T DISCLOSED PAGES INC ACQUIRED JDRV INC A WILMINGTON DEL COMPANY THAT CONDUCTS UPSCALE BOOK FAIRS IN THE MIDATLANTIC STATES TERMS WEREN'T DISCLOSED THE TRANSACTION WAS FINANCED WITH STOCK 9311240133 931124 BUSINESS BRIEF GTE CORP PARTNERSHIP SLATED TO SEEK CONTRACTS OFFERED BY US GTE CORP SAID IT SIGNED A LETTER OF INTENT WITH NORTHERN TELECOM LTD TO JOINTLY PURSUE TELECOMMUNICATIONSRELATED CONTRACTS OFFERED BY THE US GOVERNMENT GTE SAID THE PARTNERSHIP WILL SEEK MAJOR PROCUREMENTS SUCH AS THOSE RELATED TO THE DEFENSE INFORMATION SYSTEMS NETWORK WHICH PROVIDES VOICE DATA AND IMAGING SERVICES TO THE DEFENSE DEPARTMENT AROUND THE WORLD THE OVERALL VALUE OF SUCH CONTRACTS RANGE FROM 1 BILLION TO 2 BILLION OVER 10 YEARS GTE SAID THE STAMFORD CONN REGIONAL TELEPHONE COMPANY WILL CONTRIBUTE ENGINEERING AND MANAGEMENT EXPERTISE TO THE VENTURE TORONTOBASED NORTHERN TELECOM'S STRENGTHS LIE IN ITS SWITCHING EQUIPMENT AND RELATED SOFTWARE DEVELOPMENT BUSINESSES 9311240132 931124 LABOR PACT WITH US STEEL CLEARED BY UNION OFFICIALS PITTSBURGH UNITED STEELWORKERS UNION OFFICIALS YESTERDAY APPROVED A NEW 66MONTH CONTRACT WITH USX CORP'S US STEEL UNIT THAT INCLUDES BONUSES OF AS MUCH AS 8000 PER WORKER NOW SOME 15000 WORKERS WILL VOTE ON THE PACT THE CURRENT CONTRACT EXPIRES JAN 31 THE NEW AGREEMENT CALLS FOR A 5000 BONUS OVER THE LIFE OF THE CONTRACT TO OFFSET INFLATION ADDITIONAL 2000 BONUSES WILL BE PAID BEFORE THE CONTRACT'S THREEYEAR REOPENER ON CERTAIN ECONOMIC ITEMS AND IF COMPANY PROFITS REACH 300 MILLION IN 1995 WORKERS WILL RECEIVE A 1000 BONUS IN 1996 WORKERS ALSO GAINED A 50 CENTANHOUR WAGE INCREASE EFFECTIVE FEB 1 1996 THE AGREEMENT ALSO GIVES THE UNION THE RIGHT TO NOMINATE A BOARD MEMBER AND CALLS FOR GREATER WORKER INVOLVEMENT IN THE COMPANY'S OVERALL BUSINESS PLAN AND DAYTODAY OPERATIONS THE UNION SAID IT ALSO SETS A NEW MINIMUM PENSION WHICH STARTS AT 1200 A MONTH FOR WORKERS AGE 55 WITH 30 YEARS OF SERVICE AND INCREASES TO 2000 A MONTH AT AGE 65 UNDER THE CURRENT PACT A 1500AMONTH MINIMUM ENDED AT AGE 62 THE NEW PACT ALSO PROVIDES FOR NO LAYOFFS EXCEPT IN CASE OF DISASTER 9311240131 931124 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION INTERDIGITAL COMMUNICATIONS CORP AN OFFERING OF 18 MILLION CONVERTIBLE PREFERRED SHARES TO BE OFFERED AT 25 A SHARE MOLTEN METAL TECHNOLOGY INC AN OFFERING OF 2675000 SHARES VIA OPPENHEIMER & CO ALEX BROWN & SONS INC AND SMITH BARNEY SHEARSON INC NYNEX CAPITAL FUNDING CORP A UNIT OF NYNEX CORP A SHELF OFFERING FOR 133 BILLION OF DEBT SECURITIES PAINEWEBBER GROUP INC A SHELF OFFERING FOR 15 BILLION OF DEBT SECURITIES VIA PAINEWEBBER INC AND CS FIRST BOSTON REPLIGEN CORP AN OFFERING OF 25 MILLION COMMON SHARES VIA LEHMAN BROTHERS MONTGOMERY SECURITIES AND ROBERTSON STEPHENS & CO WHOLE FOODS MARKET INC AN OFFERING OF 2556520 COMMON SHARES VIA ROBERTSON STEPHENS ALEX BROWN & SONS PAINEWEBBER AND RAUSCHER PIERCE REFSNES INC 9311240130 931124 CREDIT MARKETS BOND YIELDS SHOW FIRST DROP IN SEVEN SESSIONS AS SPECULATORS RUSH IN AFTER RECENT SELLOFFS BY THOMAS D LAURICELLA AND ABBY SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK A RUSH OF BUYING BY WALL STREET DEALERS AND SPECULATIVE INVESTORS PUSHED US BOND YIELDS LOWER FOR THE FIRST TIME IN SEVEN TRADING SESSIONS THE BENCHMARK 30YEAR TREASURY BOND'S YIELD DROPPED TO 631 FROM 638 ON MONDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD ROSE A BIT MORE THAN A POINT OR A BIT MORE THAN 10 FOR A BOND WITH A 1000 FACE VALUE TO 99 3/32 THE YIELDS FOR OTHER TREASURY MATURITIES ALSO DROPPED THE COUPONEQUIVALENT YIELD OF THE ONEYEAR BILL MATURING IN NOVEMBER 1994 FOR EXAMPLE DROPPED TO 358 FROM 362 ALSO HELPING FUEL THE RALLY WAS STRONG DEMAND AT THE GOVERNMENT'S AUCTION OF 11 BILLION OF FIVEYEAR NOTES AND NEWS THAT THE GOVERNMENT WILL SELL FEWER THREEMONTH AND SIXMONTH BILLS AT ITS NEXT WEEKLY AUCTION A REDUCTION IN THE SUPPLY OF GOVERNMENT SECURITIES IS OFTEN WELCOMED IN THE BOND MARKET BECAUSE IT INCREASES THE VALUE OF OUTSTANDING SECURITIES THE TREASURY DEPARTMENT YESTERDAY ANNOUNCED A REDUCTION IN THE SIZE OF THE NEXT REGULAR MONDAY BILL AUCTION TO 268 BILLION FROM 276 BILLION THIS WEEK IN ORDER TO MEET RISING CASH NEEDS AND AS A WAY OF FILLING IN GAPS IN ITS FINANCING SCHEDULE THE TREASURY HAD SHARPLY BOOSTED THE SIZE OF THE BILL AUCTIONS FROM 224 BILLION IN MIDSEPTEMBER IN THE CORPORATE MARKET A 500 MILLION AUSTRALIAN DOLLAR US3309 MILLION OFFERING OF GLOBAL BONDS FROM THE TREASURY CORPORATION OF VICTORIA AUSTRALIA WAS THE CENTER OF ATTENTION GLOBAL BONDS ARE DESIGNED TO TRADE IN ALL OF THE WORLD'S MAJOR MARKETS INTERNATIONAL BUSINESS MACHINES CORP ALSO ACHIEVED A FIRST THE COMPUTER COMPANY'S FINANCE UNIT SOLD 1 BILLION OF BONDS IN AN UNUSUAL OFFERING THE BONDS WERE BACKED BY LEASES ON IBM MAINFRAME COMPUTERS THE FIRST OFFERING OF THIS TYPE IN THE US BOND MARKET MANY WALL STREET DEALERS AND SPECULATIVE INVESTORS BOUGHT TREASURYS BELIEVING THAT PRICES HAD FALLEN FAR ENOUGH FOR THE TIME BEING BEFORE YESTERDAY THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND HAD DROPPED MORE THAN EIGHT POINTS OR MORE THAN 80 FOR A BOND WITH A 1000 FACE VALUE SINCE MIDOCTOBER BEAR MARKETS NEED TO CORRECT AND WHEN THEY DO IT IS USUALLY FAST FURIOUS AND VIOLENT SAID RON CONNORS TRADING MANAGER AT BEAR STEARNS & CO YET TRADERS WERE RELUCTANT TO VIEW YESTERDAY'S RALLY AS ANYTHING MORE THAN A TEMPORARY BOUNCE THIS DOESN'T CHANGE MY LONGTERM OUTLOOK AT ALL SAID TIM HEATON A BOND TRADER AT NIKKO SECURITIES CO INTERNATIONAL THE MARKET SIMPLY HAS GONE DOWN TOO FAR WITHOUT ANY SUPPORT TO LEAD ME TO BELIEVE THIS IS ANYTHING MORE THAN A SHORTCOVERING RALLY TRADERS SCRAMBLED YESTERDAY TO COVER SHORTS POSITIONS WHERE THEY HAD SOLD BORROWED SECURITIES IN HOPES OF BEING ABLE TO BUY THEM BACK LATER AT LOWER PRICES FOR A PROFIT AND IN THE WAKE OF THE MARKET'S RECENT DECLINES MANY HAD SOLD TREASURY SECURITIES SHORT THE MARKET EVEN MANAGED TO WEATHER DISAPPOINTMENT AS THE FEDERAL RESERVE DEFIED SOME EXPECTATIONS AND DIDN'T ARRANGE AN OUTRIGHT PURCHASE OF NOTES AND BONDS MANY ANALYSTS HAD EXPECTED THE FED TO ARRANGE SUCH A PURCHASE KNOWN AS A COUPON PASS IN ORDER TO MEET A SEASONAL SHORTAGE OF RESERVES IN THE BANKING SYSTEM THE ACTION WOULD HAVE HAD NO MONETARYPOLICY SIGNIFICANCE THE BETTER TONE TO THE MARKET HELPED BOOST INTEREST IN THE TREASURY'S AUCTION OF FIVEYEAR NOTES WHICH WERE SOLD AT A YIELD OF 520 IN LINE WITH MARKET EXPECTATIONS THE COUPON WAS SET AT 5125 THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS RECEIVED TO THOSE ACCEPTED WAS HEALTHY AT 270TO1 INVESTOR DEMAND HELPED PUSH DOWN THE YIELD ON THE WHENISSUED FIVEYEAR NOTE TO 514 FROM 523 ON MONDAY THE TWOYEAR NOTE AUCTIONED ON MONDAY YIELDED 420 COMPARED WITH 427 LATE MONDAY TRADING TODAY WILL END EARLY AT 2 PM EST AHEAD OF THE THANKSGIVING HOLIDAY TOMORROW FRIDAY WILL ALSO BE AN ABBREVIATED SESSION IN THE MARKET FOR ASSETBACKED SECURITIES THE CENTER OF ATTENTION WAS A 1 BILLION OFFERING FROM IBM CREDIT CORP AN IBM UNIT THAT PROVIDES FINANCING FOR IBM CUSTOMERS AND DEALERS THE HUGE DEAL WAS ALSO IBM CREDIT'S FIRST FORAY INTO THE COMMERCIALSECURITIZATION MARKET THE IBM DEAL OFFERED THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC WAS PRICED LATE YESTERDAY FOR A YIELD THAT WAS 005 PERCENTAGE POINT MORE THAN WHAT HAD BEEN EXPECTED THE ISSUE RAN INTO SOME DIFFICULTY BECAUSE ITS COLLATERAL IS NEW AND REQUIRED MORE EXPLANATION SAID AN INDUSTRY SOURCE INVOLVED IN THE DEAL THE ISSUE CARRIES A COUPON OF 455 AND WAS PRICED AT 99 30/32 SINCE THE NOTES HAVE AN AVERAGE LIFE OF 153 YEARS THEY WERE PRICED AT A 065 PERCENTAGE POINT SPREAD OVER THE TREASURY'S 4125 COUPON NOTE MATURING IN JUNE 1995 TO YIELD 4661 CS FIRST BOSTON OFFICIALS WERE NOT AVAILABLE FOR COMMENT ASSET SECURITIZATION IS OFTEN USED BY COMPANIES THAT SEEK LIQUIDITY AND NEED TO GIVE THEIR BALANCE SHEETS A BOOST BY SELLING ASSETS USUALLY COMPANIES WITH LESSTHANSTELLAR CREDIT RATINGS CHOOSE THIS OPTION BECAUSE ASSET SECURITIZATION ALLOWS THEM TO ISSUE TRIPLEARATED SECURITIES SO EVEN THOUGH IBM'S SENIOR DEBT IS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP YESTERDAY'S OFFERING IS RATED TRIPLEA BY BOTH AGENCIES MEANWHILE ANOTHER LAWSUIT SEEKING CLASSACTION STATUS HAS BEEN FILED AGAINST A FUND MANAGED BY HYPERION CAPITAL MANAGEMENT INC THE SUIT WAS FILED ON NOV 19 IN THE US SOUTHERN DISTRICT OF NEW YORK BY A PLAINTIFF LISTED IN THE SUIT AS DIRECT REPRODUCTION CORP SUPERIMPOSED PENSION TRUST 3 PENSION PLAN DATED 5/12/92 THE SUIT CHARGES THAT INVESTORS IN THE HYPERION 1997 TERM TRUST WERE MISLED BY THE FUND'S OFFICIAL SALES DOCUMENT WHICH STRESSED THE HIGH CREDIT QUALITY OF ITS INVESTMENTS THE FUND IS A PUBLICLY TRADED CLOSEDEND FUND A SEPARATE SUIT WITH SIMILAR ALLEGATIONS WAS FILED AGAINST ANOTHER HYPERION FUND IN OCTOBER MICHAEL ROSELLA AN ATTORNEY REPRESENTING HYPERION SAID THE CLAIMS IN THE LAWSUIT WERE MERITLESS AND THEY WILL BE DEFENDED VIGOROUSLY THE PLAINTIFF IS A PENSION FUND ESTABLISHED BY DIRECT REPRODUCTION CORP WHICH IS BASED IN NEW YORK A COMPANY SPOKESMAN DECLINED TO COMMENT FURTHER ON THE FILING ALSO NAMED IN THE SUIT WERE DIRECTORS OF THE FUND AS WELL AS THE FUND'S UNDERWRITERS PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA KIDDER PEABODY & CO A UNIT OF GENERAL ELECTRIC CO MERRILL LYNCH & CO OPPENHEIMER & CO PAINEWEBBER INC A UNIT OF PAINEWEBBER GROUP INC SMITH BARNEY HARRIS UPHAM & CO NOW KNOWN AS SMITH BARNEY SHEARSON INC A UNIT OF PRIMERICA CORP ADVEST INC CROWELL WEEDON & CO AND DAIN BOSWORTH INC HERE ARE THE DETAILS FROM YESTERDAY'S AUCTION OF FIVEYEAR NOTES ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED NOVEMBER 30 AND MATURE NOVEMBER 30 1998 THE TREASURY CORPORATION OF VICTORIA'S GLOBALBOND OFFERING DOMINATED THE SESSION WHICH SAW AN ADDITIONAL 925 MILLION OF DEBT PRICED AMONG THE OTHER NEW ISSUES WERE A 300 MILLION TWOCLASS OFFERING FROM APPARELMAKER FRUIT OF THE LOOM INC AND A 325 MILLION JUNKBOND OFFERING FROM WHEELINGPITTSBURGH CORP A STEEL COAL AND ALUMINUM CONCERN IN THE INVESTMENTGRADE MARKET TRADING WAS EXTREMELY LIGHT WITH PRICES FOLLOWING TREASURYS HIGHER SPREADS REMAINED UNCHANGED TRADING IN THE JUNKBOND MARKET WAS ALSO LIGHT AS PRICES CLOSED RELATIVELY UNCHANGED TCV'S FIVEYEAR NONCALLABLE NOTES WERE PRICED WITH A 65 COUPON AT 99664 TO YIELD 658 THE BONDS WERE PRICED TO YIELD 012 PERCENTAGE POINT LESS THAN TCV'S 12 COUPON BONDS MATURING IN OCTOBER 1998 AND 023 PERCENTAGE POINT ABOVE THE AUSTRALIAN GOVERNMENT'S BONDS MATURING IN AUGUST 1998 THE NOTES WHICH ARE GUARANTEED BY THE STATE GOVERNMENT OF VICTORIA ARE RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THERE IS ALREADY A LITTLE OPTIMISM IN THE MUNICIPALBOND MARKET ABOUT THE PROPOSED DISTRESSED COMMUNITY ECONOMICDEVELOPMENT BONDS THAT WERE INTRODUCED IN A BILL MONDAY REP WILLIAM COYNE D PA AND A NUMBER OF OTHER MEMBERS OF THE TAXWRITING HOUSE WAYS AND MEANS COMMITTEE INTRODUCED THE BILL FOR THE NEW TYPE OF TAXEXEMPT BOND THE PROPOSED SECURITIES COULD BE USED BY STATE AND LOCAL GOVERNMENTS TO FINANCE ECONOMICDEVELOPMENT PROJECTS IN AREAS QUALIFYING AS DISTRESSED COMMUNITIES DUE TO SUBSTANTIAL POPULATION LOSS PROTRACTED HIGH UNEMPLOYMENT SLOW JOB GROWTH OR A MILITARYBASE CLOSING RESULTING IN A LOSS OF MORE THAN 500 JOBS SEPARATELY PRICES OF ACTIVELY TRADED TAXEXEMPT ISSUES WERE GENERALLY UNCHANGED TO 1/8 POINT LOWER IN YESTERDAY'S VERY SLOW DEALINGS THE CALIFORNIA POLLUTION CONTROL FINANCE AUTHORITY'S 585 BONDS OF 2023 WERE UNCHANGED AT 98 1/4 TO YIELD 592 AMONG THE FEW ISSUES PRICED YESTERDAY WAS A NORFOLK VA OFFERING OF 671 MILLION OF SERIES 1993 WATER REVENUE BONDS FOLLOWING A REPRICING BY A MORGAN STANLEY & CO GROUP AT WHICH YIELDS FOR A NUMBER OF BONDS WERE LOWERED 002 TO 005 PERCENTAGE POINT DUE TO STRONG DEMAND YIELDS RANGE FROM 280 IN 1994 TO 563 IN 2023 THE INITIAL YIELD SCALE WAS 280 IN 1994 TO 565 IN 2023 JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9311240129 931124 FINANCING BUSINESS HOLLINGER INC HOLLINGER INC SAID IT INCREASED THE SIZE OF ITS PROPOSED ISSUE OF CONVERTIBLE DEBENTURES TO 125 MILLION CANADIAN DOLLARS US943 MILLION FROM C100 MILLION DUE TO STRONG DEMAND THE TORONTO NEWSPAPER PUBLISHING CONCERN SAID IT PLANS TO ISSUE THE FIVEYEAR 7 DEBENTURES TO RAISE FUNDS TO REPAY AN EXISTING ISSUE OF ADJUSTABLE RATE CONVERTIBLE SUBORDINATED DEBENTURES THE NEW DEBENTURE ISSUE WILL BE CONVERTIBLE ON MATURITY INTO COMMON SHARES OF HOLLINGER THE NUMBER OF SHARES ISSUED WILL BE CALCULATED TO ALLOW THE HOLDER TO BENEFIT FROM AN INCREASE IN THE MARKET PRICE OF SOUTHAM INC A TORONTO PRINTING AND PUBLISHING CONCERN IN WHICH HOLLINGER HAS A 24 STAKE AN INCREASE IN SOUTHAM'S SHARE PRICE ABOVE C1750 A SHARE UP TO A MAXIMUM OF C2450 A SHARE WILL RESULT IN AN ADJUSTMENT IN THE NUMBER OF HOLLINGER SHARES ISSUED THE COMPANY DIDN'T GIVE DETAILS OF THE NUMBER OF SHARES IT MIGHT ISSUE SHOULD THE DEBENTURE ISSUE BE CONVERTED HOLLINGER CURRENTLY HAS 559 MILLION SHARES OUTSTANDING IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY SOUTHAM SHARES CLOSED AT C17375 DOWN 125 CANADIAN CENTS HOLLINGER SHARES CLOSED AT C13125 DOWN 25 CANADIAN CENTS 9311240128 931124 INTERNATIONAL FRENCH PRICE INDEX CLIMBS PARIS FRANCE'S OCTOBER DEFINITIVE CONSUMER PRICE INDEX ROSE 02 ON THE MONTH AND 22 ON THE YEAR THE NATIONAL STATISTICS INSTITUTE SAID OCTOBER'S CONSUMER PRICE INCREASES ARE A SLIGHT DROP FROM SEPTEMBER'S INCREASE OF 04 ON THE MONTH AND 23 ON THE YEAR 9311240127 931124 LETTERS TO THE EDITOR DC'S POLICE CHIEF ANSWERS CRITICISMS I WAS ASTONISHED TO READ TUCKER CARLSON'S NOV 3 EDITORIAL PAGE PIECE WASHINGTON'S INEPT POLICE FORCE MR CARLSON'S ACCUSATIONS ARE NOT OF RECENT VINTAGE THE WINTER 1993 ISSUE OF THE HERITAGE FOUNDATION'S POLICY REVIEW WHICH IS THE BASIS FOR MR CARLSON'S COMMENTARY WAS RELEASED SOME 10 MONTHS AGO A SIMILAR PIECE WAS IN THE WASHINGTON POST ON JAN 17 1993 WHILE I TAKE ISSUE WITH MANY OF MR CARLSON'S ASSERTIONS MUCH HAS CHANGED SINCE I WAS SWORN IN AS THE DISTRICT OF COLUMBIA'S CHIEF OF POLICE ON JAN 8 1993 WE HAVE SPENT MORE THAN 8 MILLION ON TECHNOLOGY NEW TELEPHONE SYSTEMS IN DISTRICT STATION HOUSES NEW PORTABLE RADIOS FOR OFFICERS ON PATROL NEW MICROCOMPUTERS INTERFACED TO OUR MAINFRAME COMPUTER SYSTEM WITH LOCAL AREA NETWORKS AN UPGRADED AUTOMATED FINGERPRINT IDENTIFICATION SYSTEM A NEW COMPUTERAIDED DISPATCH SYSTEM AND A NEW AUTOMATED INTELLIGENCE SYSTEM ESSENTIAL COMPONENTS OF THE DEPARTMENT ARE BEING EVALUATED A NEW SYSTEM OF ENTRYLEVEL STANDARDS FOR POLICE OFFICERS HAS BEEN PUT IN PLACE A NEW CIVILIAN DIRECTOR OF TRAINING IS REVAMPING ENTRYLEVEL AND INSERVICE TRAINING IN EARLY DECEMBER WE BEGAN USING A JOBRELATED ENTRYLEVEL EXAMINATION FOR POLICE OFFICER APPLICANTS THE DEPARTMENT HAS BEEN REALIGNED TO OPERATE MORE EFFECTIVELY AND OUR INTERNAL AFFAIRS OFFICE HAS BEEN REFOCUSED TO BETTER COPE WITH OFFICIAL MISCONDUCT WE HAVE UNDERTAKEN A FALL CRIME INITIATIVE TO BATTLE OUR GREATEST CHALLENGE CRIME AND VIOLENCE IN HIS ACCOUNT OF THE REASONS FOR THE ALLEGED INEPTITUDE OF THE DC POLICE FORCE MR CARLSON ASSERTS THAT STRENGTH AND ENDURANCE TESTS ARE NOT REQUIRED OF CANDIDATES FOR FEAR THIS WILL BRING THE CITY INTO CONFLICT WITH THE AMERICANS WITH DISABILITIES ACT ADA THAT STATEMENT IS NOT TRUE THE LANDMARK ADA LEGISLATION GUARANTEEING CIVIL RIGHTS FOR PEOPLE WITH DISABILITIES PROVIDES ONLY FOR FAIR AND EQUAL TREATMENT IN THE WORKPLACE BASED ON ABILITY CANDIDATES FOR EMPLOYMENT WHO ARE NOT QUALIFIED TO PERFORM ESSENTIAL JOB JUNCTIONS ARE NOT REQUIRED TO BE HIRED BY PRIVATE EMPLOYERS OR GOVERNMENT AGENCIES TESTS TO DETERMINE PHYSICAL QUALIFICATIONS IDENTIFIED AS ESSENTIAL JOB FUNCTIONS ARE NOT SUBJECT TO THE PROHIBITION AGAINST PREEMPLOYMENT MEDICAL EXAMINATIONS IF THEY ARE GIVEN TO ALL APPLICANTS IN THAT JOB CATEGORY 9311240126 931124 INTERNATIONAL WESTERN GERMAN INSOLVENCIES WIESBADEN GERMANY CORPORATE INSOLVENCIES IN WESTERN GERMANY TOTALED 1042 IN AUGUST 24 MORE THAN A YEAR EARLIER THE FEDERAL STATISTICS OFFICE REPORTED IN THE FIRST EIGHT MONTHS OF THE YEAR CORPORATE INSOLVENCIES REACHED 8183 UP 28 FROM A YEAR EARLIER 9311240125 931124 CANADIAN CONSUMER PRICE RISE OTTAWA CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 01 IN OCTOBER FROM SEPTEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE OCTOBER RISE FOLLOWED INCREASES AVERAGING 02 A MONTH IN THE PREVIOUS FOUR MONTHS 9311240124 931124 MARKETING & MEDIA TELEVISION PRODUCERS SEEK TO BLOCK RULING ON SHOW OWNERSHIP NEW YORK A COALITION OF HOLLYWOOD PRODUCERS IS ATTEMPTING TO BLOCK A RECENT COURT RULING THAT ALLOWS THE THREE MAJOR TELEVISION NETWORKS TO OWN AND EVENTUALLY SYNDICATE SHOWS THE COALITION TO PRESERVE THE FINANCIAL INTEREST AND SYNDICATION RULE YESTERDAY ASKED THE NINTH US CIRCUIT COURT OF APPEALS IN CALIFORNIA FOR A STAY OF A NOV 8 COURT RULING BY US DISTRICT JUDGE MANUEL REAL A MAJOR VICTORY FOR THE NETWORKS THAT RULING LIFTED PORTIONS OF LONGSTANDING CONSENT DECREES THAT BLOCKED THE NETWORKS FROM OWNING FINANCIAL INTERESTS IN SHOWS AND FROM SYNDICATING THEM THE COALITION ASKED FOR THE STAY TO BE IMPOSED NO LATER THAN JAN 1 1994 PENDING ITS APPEAL OF JUDGE REAL'S REFUSAL TO ALLOW THE COALITION TO INTERVENE IN THE DECISION TO LIFT THE CONSENT DECREES THE PARTIES TO THE CONSENTDECREE RULING WERE THE US JUSTICE DEPARTMENT AND THE THREE MAJOR BROADCAST NETWORKS CAPITAL CITIES/ABC INC'S ABC CBS INC AND GENERAL ELECTRIC CO'S NBC THE PRODUCERS CONTEND THEY HAD NO CHANCE TO PERSUADE THE COURT THAT THEY SHOULD BE ALLOWED TO ARGUE AGAINST THE LIFTING OF THE DECREES IN A STATEMENT RESPONDING TO THE REQUEST FOR A STAY CBS SAID THAT GIVEN YEARS AND YEARS OF HOLLYWOOD'S DILATORY TACTICS THIS ACTION IS HARDLY UNEXPECTED CBS ADDED THAT TWO JUDGES WHO HAVE PRESIDED IN THIS CASE FOUND NO MERIT IN THE COALITION'S CASE AND WE ARE CONFIDENT THE NINTH CIRCUIT WILL DO THE SAME 9311240123 931124 INTERNATIONAL AUDITORS' STUDY ON LOPEZ IS SAID TO FIND NO PROOF THAT HE FED GM SECRETS TO VW BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BONN PEOPLE CLOSE TO VOLKSWAGEN AG SAID EXTERNAL AUDITORS ARE EXPECTED TO REPORT THAT THEY FOUND NO PROOF THAT J IGNACIO LOPEZ DE ARRIORTUA FED ANY OF GENERAL MOTORS CORP'S SECRETS TO THE GERMAN CAR MAKER THESE INDIVIDUALS CONCEDE THAT THE AUDITOR'S FINDINGS MAY LEAVE SOME QUESTIONS UNANSWERED ADMITTEDLY IT'S NOT PRETTY ONE SAID OF THE REPORT BUT ONE PERSON CLOSE TO VW SAID THE CHARGE OF INDUSTRIAL ESPIONAGE CAN'T BE PROVEN AND THAT MEANS VW'S HANDS ARE CLEAN THE AUDITOR'S PROBE WAS COMMISSIONED BY VW IN RESPONSE TO GM'S ALLEGATIONS THAT MR LOPEZ THE US CAR MAKER'S FORMER PURCHASING CHIEF ABSCONDED WITH PROPRIETARY INFORMATION WHEN HE JUMPED TO VW LAST MARCH THE STUDY CONDUCTED BY KPMG DEUTSCHE TREUHANDGESELLSCHAFT WILL BE OFFICIALLY PRESENTED AT A VW SUPERVISORYBOARD MEETING FRIDAY THE REPORT IS EXPECTED TO INDICATE THAT CERTAIN GM MATERIALS WERE INDEED ENTERED INTO VW COMPUTERS BUT THAT THESE WEREN'T SECRET DOCUMENTS RATHER THEY CONSISTED PRIMARILY OF TRAINING MATERIALS FOR TEACHING WORKERS ABOUT CONTINUOUS IMPROVEMENT PROCEDURES INFORMATION CONSIDERED PUBLIC KNOWLEDGE IN THE AUTO INDUSTRY AND THEREFORE DON'T CONSTITUTE INDUSTRIAL ESPIONAGE THE PERSON SAID UNTIL NOW VW HAS DISPUTED THAT ANY GM MATERIALS MADE THEIR WAY INTO VW'S COMPUTER FILES MR LOPEZ WHO HAS DENIED CHARGES OF INDUSTRIAL ESPIONAGE HAS ACKNOWLEDGED THAT HE MAY HAVE HAD SOME SENSITIVE DOCUMENTS IN HIS POSSESSION BUT SHREDDED THEM SOON AFTER LEAVING GM TO KEEP THEM FROM FALLING INTO VW'S HANDS VW AND KPMG OFFICIALS DECLINED TO COMMENT ON WHAT THE REPORT IS EXPECTED TO SAY VW OFFICIALS STRESS THAT THE ONLY RELEVANT ISSUE FOR THEM IS SHOWING THAT NO GM SECRETS OF COMPETITIVE SIGNIFICANCE LANDED AT THE WOLFSBURG COMPANY GM CALLS THAT A LOOSE INTERPRETATION OF THE ALLEGED PROBLEM THE QUESTION IS WHETHER PEOPLE BEFORE THEY JOINED A DIRECT COMPETITOR TOOK OUR COMPANY'S DOCUMENTS WITHOUT PERMISSION IF THEY DID THAT WOULD CONSTITUTE A CRIMINAL ACT IRRESPECTIVE OF WHETHER A COMPETITOR CONSIDERS THOSE DOCUMENTS SECRET SAID HANS WILHELM GAEB VICE PRESIDENT OF GM EUROPE AND A MEMBER OF THE SUPERVISORY BOARD OF GM'S ADAM OPEL AG UNIT IN GERMANY IT IS RATHER AMUSING THAT A POTENTIAL BENEFICIARY WANTS TO DETERMINE WHAT OUR BUSINESS SECRETS ARE AND IN ADDITION TO THAT DESTROYS OUR PROPERTY INSTEAD OF RETURNING IT THROUGH THE POLICE THE INDUSTRIAL ESPIONAGE DISPUTE HAS BEEN UNDER INVESTIGATION BY THE US JUSTICE DEPARTMENT AND CRIMINAL PROSECUTORS IN GERMANY NO OFFICIAL CHARGES HAVE BEEN FILED THE KPMG REPORT HAS NO OFFICIAL BEARING ON THE INVESTIGATIONS ALTHOUGH PROSECUTORS WILL EXAMINE IT PROSECUTORS IN DARMSTADT GERMANY SAID THEY HADN'T YET RECEIVED A COPY OF THE KPMG STUDY AT THE END OF AUGUST DOROTHEA HOLLAND THE PROSECUTOR IN CHARGE OF THE CASE SUPERVISED A RAID ON VARIOUS VW LOCATIONS SEIZING BOXES OF DOCUMENTS AND COMPUTER DISKS SINCE THAT TIME HER OFFICE HAS BEEN WADING THROUGH A SEA OF EVIDENCE THAT WOULD AMOUNT TO SOME TWO MILLION PAGES IF ALL THE DATA WERE PRINTED OUT ACCORDING TO A SPOKESMAN FOR MS HOLLAND WHO INDICATED THAT THEY WERE NOWHERE NEAR FINISHED EVALUATING THE TROVE 9311240121 931124 FOREIGN EXCHANGE DOLLAR DRIFTS LOWER AGAINST THE MARK GAINS ON THE YEN IN LACKLUSTER SESSION BY TIMOTHY MAPE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR DRIFTED THROUGH A SLUGGISH TRADING SESSION DOMINATED BY TECHNICAL FACTORS TUESDAY TO TRADE SLIGHTLY LOWER AGAINST THE MARK AND HIGHER AGAINST THE YEN BUT STERLING SHRUGGED OFF THE STUPOR RACKING UP IMPRESSIVE GAINS AGAINST THE DOLLAR AND THE MARK DESPITE A CUT IN BRITISH INTEREST RATES THE LIRA MEANWHILE CONTINUED TO BE HURT BY FOREIGN INVESTORS' CONCERN ABOUT ITALY'S CHAOTIC POLITICAL SCENE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17020 MARKS DOWN FROM 17038 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10867 YEN UP FROM 10843 YEN STERLING WAS TRADING AT 14855 UP FROM 14755 TOKYO FINANCIAL MARKETS WERE CLOSED TUESDAY FOR A NATIONAL HOLIDAY ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10828 YEN AND AT 17032 MARKS DEALERS SAID THAT A LACK OF MAJOR ECONOMIC NEWS AND A PREHOLIDAY SPIRIT PRODUCED A LETHARGIC ATMOSPHERE THROUGHOUT THE MARKET TUESDAY TRAPPING THE DOLLAR IN NARROW RANGES AS TRADERS TOYED WITH TECHNICAL LEVELS WHERE INVESTORS HAD PLACED PRESET ORDERS TECHNICAL FACTORS DOMINATED THE SCENARIO SAID ALBERT SORIA FOREIGNEXCHANGE MANAGER AT KANSALLIS OSAKE PANKKI A FINNISH BANK IN NEW YORK ABOUT THE ONLY SPARK CAME DURING THE NEW YORK MORNING WHEN THE DOLLAR BRIEFLY BROKE ABOVE AN IMPORTANT LEVEL AT 10880 YEN TRIGGERING SPOTLOSS BUYING THAT SENT THE DOLLAR AS HIGH AS 10920 YEN ITS HIGHEST POINT SINCE MIDJULY BUT THAT MOVE WAS QUICKLY REVERSED AS JAPANESE EXPORTERS DUMPED DOLLARS INTO THE MARKET SENDING THE US CURRENCY BACK TO ITS WELLWORN RANGE BETWEEN 10820 YEN AND 10880 YEN FOR THE REST OF THE DAY PARTIALLY FUELING THE BLIP HIGHER TRADERS SAID WERE MARKET RUMORS PREDICTING THAT A US TREASURY REPORT ON FOREIGNEXCHANGE CONDITIONS TO BE RELEASED LATER IN THE DAY WOULD PROVIDE MORE CONFIRMATION OF THE GROWING VIEW THAT THE US IS NO LONGER PUSHING FOR A STRONGER YEN WHEN FINALLY RELEASED THE REPORT DIDN'T OFFER ANY SPECIFIC OPINION ON THE YEN INSTEAD IT REITERATED THE STANDARD US TREASURY COMMENT ON EXCHANGE RATES THAT THEY SHOULD REFLECT ECONOMIC FUNDAMENTALS MEANWHILE THE POUND RALLIED STRONGLY AGAINST THE DOLLAR AND THE MARK AFTER THE BANK OF ENGLAND CUT BRITAIN'S BASE LENDING RATES TO 55 FROM 6 TRADERS NOTED THAT AFTER A BRIEF DIP THE MARKET QUICKLY REVERSED COURSE AND PLAYERS BEGAN TO BUY POUNDS ON THE MOVE REASONING THAT THE CUT SHOULD HELP TO STIMULATE BRITAIN'S ECONOMY AND PREVENT A SLIDE BACK INTO A DOUBLEDIP RECESSION AND THEY ADDED THAT BECAUSE MANY PLAYERS ALREADY HAD FACTORED A FULL PERCENTAGE POINT CUT INTO THE POUND'S PRICE THE HALFPOINT CUT WAS DEEMED BULLISH FOR THE CURRENCY MR SORIA AND OTHER TRADERS NOTED THAT THE FOCUS ON STERLING WILL NOW SHIFT TO NEXT TUESDAY'S BUDGET STATEMENT BY CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE WHICH IS WIDELY EXPECTED TO INCLUDE SOME TAX INCREASES ALSO IN EUROPE THE LIRA CONTINUED TO WEAKEN IN THE AFTERMATH OF MUNICIPAL ELECTIONS HELD OVER THE WEEKEND IN WHICH MAINSTREAM PARTIES WERE TROUNCED BY SEPARATISTS AND RADICALS ON THE RIGHT AND LEFT OF THE POLITICAL SPECTRUM 9311240120 931124 BENTSEN URGES STIMULATION IN JAPAN EUROPE RATE CUT WASHINGTON TREASURY SECRETARY LLOYD BENTSEN WARNING THAT THE ECONOMIC OUTLOOK FOR THE INDUSTRIALIZED WORLD IS BLEAK URGED JAPAN TO STIMULATE ITS ECONOMY PROMPTLY AND EUROPE TO CUT INTEREST RATES FURTHER THE JAPANESE GOVERNMENT MUST ACT PROMPTLY AND DECISIVELY TO IMPLEMENT FISCAL AND MONETARY MEASURES THAT ENSURE STRONG DOMESTIC DEMAND AND REDUCE ITS TRADE SURPLUS MR BENTSEN SAID IN A STATEMENT ACCOMPANYING THE TREASURY'S ANNUAL REPORT ON EXCHANGERATE POLICY THE US HAS BEEN DISAPPOINTED JAPAN ISN'T MOVING FASTER TO CUT TAXES IN RESPONSE TO ITS DEEPENING RECESSION EUROPE SHOULD CONTINUE TO PURSUE POLICIES THAT PERMIT ADDITIONAL CUTS IN INTEREST RATES AND TO ADDRESS STRUCTURAL ISSUES THAT ARE IMPEDING GROWTH AND EMPLOYMENT MR BENTSEN ADDED IN A COMMENT OBVIOUSLY DIRECTED TO FRANCE THE TREASURY REPORT SAID THAT THE EUROPEAN ECONOMIC OUTLOOK WOULD IMPROVE IF COUNTRIES THERE WOULD TAKE ADVANTAGE OF THE ADDED FLEXIBILITY PROVIDED BY THE RECENT DECISION TO LET EUROPEAN CURRENCIES FLUCTUATE IN A WIDER BAND AS GROWTH IN THE US OUTSTRIPS THAT OF ITS TRADING PARTNERS THE US TRADE DEFICIT IS LIKELY TO WIDEN THE TREASURY EXPECTS THE BROADEST MEASURE OF THE TRADE BALANCE THE CURRENTACCOUNT DEFICIT TO RISE TO SLIGHTLY ABOVE 100 MILLION IN 1993 AND THEN FURTHER NEXT YEAR THE DEFICIT WAS 664 BILLION IN 1992 9311240119 931124 LEISURE & ARTS FILM ROBIN WILLIAMS IS 'MRS DOUBTFIRE' BY JULIE SALAMON MRS DOUBTFIRE OPENS IN A RECORDING STUDIO WHERE ROBIN WILLIAMS PLAYING AN ACTOR IS PROVIDING VOICEOVERS FOR ALL THE CHARACTERS IN A KIDDIE CARTOON THE MANIC SHIFTS IN TONE AND INFLECTION ARE PURE WILLIAMS IT'S FREE ASSOCIATION AS COMIC SHTICK THE RECORDING SESSION IS MOVING ALONG WHEN DANIEL MR WILLIAMS'S CHARACTER STARTS ADLIBBING HE INSERTS AN ANTISMOKING MESSAGE INTO THE MOUTH OF A BRASH LITTLE BIRD CALLED PUDGY WHEN THE DIRECTOR ORDERS THE ACTOR TO STICK TO THE UNREPENTANTLY ANTISOCIAL SCRIPT DANIEL LOOKS FOR SUPPORT AT THE CONTROL ROOM BUT LIKE A CARTOON CHARACTER STUMBLING AROUND A NIGHTMARE WORLD HE REALIZES HE HAS NO ALLIES THE MEN IN THE GLASS BOOTH ARE FIERCELY PUFFING CIGARETTES THE DIRECTOR AN OAF WHO OBVIOUSLY CARES NOTHING FOR THE HEALTH OF THE CHILDREN WATCHING HIS SHOW KICKS THE SENSITIVE DANIEL OUT THIS SCENE SETS THE TONE OF THE MOVIE DANIEL THE WILLIAMS CHARACTER IS BRILLIANT AND PRINCIPLED WILDLY TALENTED AND DEEPLY MISUNDERSTOOD ALL OTHER ADULTS ARE SOULLESS CARICATURES ABOUT AS COMPLEX AS THE CARTOON CHARACTERS DANIEL GIVES VOICE TO BUT NOT NEARLY AS AMUSING NUMBER ONE AMONG THE ADVERSARIAL ADULTS ACTIVELY MISUNDERSTANDING DANIEL IS HIS WIFE A TRIM ORDERLY INTERIOR DESIGNER AFTER 14 YEARS OF MARRIAGE TO HER CHARMING MESSY MOSTLY OUTOFWORK HUSBAND SHE KICKS HIM OUT OF THEIR HOUSE AND ALLOWS A JUDGE TO RESTRICT DANIEL'S ACCESS TO THEIR CHILDREN TO SATURDAYS DANIEL GETS AROUND THE COURT BY DISGUISING HIMSELF AS A 60YEAROLD BRITISH WOMAN AND GETTING HIS GRIM WIFE TO HIRE HIM AS THE CHILDREN'S NANNY CALLING HIMSELF MRS DOUBTFIRE DANIEL IMPROVES LIFE FOR EVERYONE IN THE FAMILY THE MAIN POINT OF THIS STORY LINE OF COURSE IS TO GIVE MR WILLIAMS A VEHICLE FOR HIS FRENETIC IMPERSONATIONS WHAT COULD BE BETTER FOR THIS THAN DRESSING UP AS A WOMAN ESPECIALLY A GRANDMOTHERLY BRITISH ONE HE CAN DO VOICES TEAR IN AND OUT OF FAKE BREASTS AND A PLASTIC FACE TOTTER AROUND ON HEELS THEN WHEN HE'S DANIEL HE GETS TO BE A WARM TROUBLED MAN MR WILLIAMS MAKES THE MOST OF THE OPPORTUNITY CAREENING AROUND LIKE A LOONEY TOON CHARACTER ON SPEED HE'S NOT ONLY GREAT AS A WISECRACKING ENGLISH TOOTSIE HE MAKES DANIEL'S HEARTACHE CONVINCING AS WELL THIS EXUBERANT PERFORMANCE DOESN'T HOWEVER MAKE MRS DOUBTFIRE A GREAT MOVIE THOUGH IT WILL IN ALL LIKELIHOOD MAKE THE MOVIE A HUGE COMMERCIAL SUCCESS ALL THE REST IS A WATERY STEW SO BLAND IT SEEMS AN ALMOST DELIBERATE ATTEMPT TO WIPE OUT ALL COMPETITION FOR THE AUDIENCE'S ATTENTION PERHAPS THIS FOCUS ON THE STAR WAS INEVITABLE SINCE MR WILLIAMS AND HIS WIFE WHO MET HIM AS THE NANNY TO HIS CHILDREN BY A PREVIOUS WIFE MARSHA GARCES ARE TWO OF THE FILM'S PRODUCERS WHATEVER THE REASON THE SCRIPT BY RANDI MAYEM SINGER AND LESLIE DIXON FAILS TO GIVE ANY OTHER CHARACTER A SPARK OF LIFE AS IF ALL THE FILM'S OXYGEN HAD TO BE KEPT ON RESERVE FOR MR WILLIAMS ALL THE WOMEN EXCEPT FOR MRS DOUBTFIRE ARE SHREWS OR SHALLOW OR BOTH ESPECIALLY DANIEL'S WIFE MIRANDA EVEN SALLY FIELDS WITH HER RESOLUTE NICENESS CAN'T BRING MUCH SYMPATHY TO THIS YUPPIE PRINCESS WHOSE MAIN IDEA OF FAMILIAL BLISS SEEMS TO BE A CLEAN LIVING ROOM THE SCREENWRITERS AREN'T SEXIST THEY TREAT THE MEN WHO AREN'T DANIEL WITH EQUAL SHALLOWNESS PIERCE BROSNAN IS THE TRITE PRETTY BOY WHO PURSUES MIRANDA ROBERT PROSKY IS A LECHEROUS TV PRODUCER HARVEY FIERSTEIN IS THE FLAMBOYANT GAY MAKEUP ARTIST INDEED THE TRIVIALITY OF CHARACTERIZATION IS FAIRLY COMPLETE THE CHILDREN HAVE THE WARMTH AND HUMANITY OF CATALOGUE MODELS EVEN MRS DOUBTFIRE HERSELF NEVER SEEMS LIKE AN INDEPENDENT CHARACTER WE NEVER REALLY SEE HER THE WAY MIRANDA AND THE CHILDREN ARE SUPPOSED TO SEE HER AS THE PRIM BRITISH LADY WHO'S BROUGHT ORDER TO THEIR LIVES YOU ALWAYS SEE MR WILLIAMS LURKING BEHIND THE PADDING AND THE MASK THE MOVIE'S PROBLEMS ARE READILY APPARENT WHEN YOU MAKE THE MOST OBVIOUS COMPARISON TO THE WRITING IN TOOTSIE THE 1983 COMEDY IN WHICH DUSTIN HOFFMAN PLAYED AN ACTOR WHO DISGUISED HIMSELF AS A WOMAN TO GET A JOB TOOTSIE RECOGNIZED THAT THE CENTRAL JOKE OF A MAN DISGUISING HIMSELF AS A WOMAN COULD BE MORE THAN JUST A JOKE THAT FILM MANAGED WITH HILARITY AND INTELLIGENCE TO USE THE PREMISE AS A SHREWD WAY TO INVESTIGATE FEMINISM AND INDIVIDUAL NEUROSES AND A LOT OF OTHER THINGS THROUGH WELLDEVELOPED CHARACTERS MR HOFFMAN WAS GIVEN NOT ONE BUT THREE FULLY REALIZED PEOPLE TO PLAY INCLUDING THE SOAP OPERA CHARACTER HIS FEMALE ALTEREGO WAS PLAYING AND THE FILMMAKERS DIDN'T FIND IT NECESSARY TO ISOLATE HIM FROM HIS FELLOW PLAYERS THE MINOR CHARACTERS WERE GIVEN INTERESTING THINGS TO DO AS WELL THE PEOPLE WHO MADE MRS DOUBTFIRE SEEM TO THINK THE JOKE ITSELF IS DEPTH ENOUGH DIRECTOR CHRIS COLUMBUS HAS BUILT A CAREER OUT OF KIDINPERIL MOVIES HE WROTE THE SCREENPLAY FOR GREMLINS AND THE GOONIES HE DIRECTED HOME ALONE AND HOME ALONE 2 NOW HE'S TREATED THE STORY OF A FAMILY BREAKING UP WITH THE SAME GLIB SENTIMENT HE APPLIED TO THE STORY OF A KID WHOSE FAMILY ACCIDENTALLY LEAVES HIM AT HOME THIS TIME IT'S DAD IN PERIL YES THERE REALLY IS A SCENE IN WHICH THE HAPLESS DAD COOKING FOR THE FIRST TIME SETS A PAN AND HIS FAKE BREASTS ON FIRE WHILE ROBIN WILLIAMS HAS SPENT HIS TIME REINVENTING HIMSELF AS MACAULAY CULKIN MACAULAY CULKIN HAS BEEN DOING WHAT MIGHT BE CALLED SLUMMING IN HOLLYWOOD WHERE NOBILITY IS MEASURED BY BOX OFFICE GROSSES THE YOUNG STAR OF HOME ALONE APPEARS IN THE NEW MOVIE VERSION OF THE CHILDREN'S BALLET CLASSIC WHICH IS BEING CALLED GEORGE BALANCHINE'S THE NUTCRACKER MR CULKIN'S PRESENCE OF COURSE IS DESIGNED TO MAKE THIS HANDSOME PRESENTATION OF THE BALLET ACCEPTABLE TO THE HOME ALONE AUDIENCE MY OWN LITTLE FOCUS GROUP TWO FOURYEAROLD GIRLS DIDN'T SEEM TO KNOW WHO MR CULKIN WAS BUT THEY WERE ENTRANCED BY THE MOVIE ANYWAY ESPECIALLY THE OPENING ACT'S LUSH INTRODUCTION TO THE STORY THEY SQUIRMED JUST A LITTLE WHEN THE SERIOUS DANCING BEGAN AGAINST CURIOUSLY STAGNANT BACKGROUNDS VIDEO TIP BEFORE TOOTSIE THERE WAS OF COURSE SOME LIKE IT HOT PERHAPS THE CLASSIC CROSSDRESSING FILM COMEDY OF ALL TIME DIRECTOR BILLY WILDER WHO COLLABORATED ON THE SCREENPLAY WITH IAL DIAMOND LET LOOSE WITH DOUBLE AND TRIPLEENTENDRES SO SHREWD SO INNOCENT 9311240118 931124 MARKETING BRIEF COX ENTERPRISES INC TEST OF ONLINE DATA SERVICE OVER CABLE SET FOR SAN DIEGO COX ENTERPRISES INC SAID IT WILL BEGIN TESTING THE DELIVERY OF PRODIGY AN ONLINE INFORMATION SERVICE NOW PROVIDED THROUGH TELEPHONE WIRES OVER CABLE THE TEST IS SEEN BY MANY IN THE COMMUNICATIONS INDUSTRY AS AN IMPORTANT STEP IN THE DEVELOPMENT OF INTERACTIVE MEDIA CURRENTLY PROVIDED VIA TELEPHONE WIRES PRODIGY'S TEXT AND IMAGES CAN BE DELIVERED UP TO 50 TIMES FASTER THROUGH CABLE ACCORDING TO SCOTT KURNIT EXECUTIVE VICE PRESIDENT OF PRODIGY SERVICES CO A PARTNERSHIP OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO THE TEST WILL TAKE PLACE IN SAN DIEGO WHERE COX CABLE COMMUNICATIONS A COX ENTERPRISES DIVISION WILL OFFER PRODIGY TO 1500 SUBSCRIBERS AT THE REGULAR RATE OF 1495 PER MONTH ONLY A HANDFUL OF SUBSCRIBERS ARE EXPECTED TO PARTICIPATE BUT THE ARRANGEMENT WILL ALLOW PRODIGY TO EVALUATE A NUMBER OF ENHANCED SERVICES COX ENTERPRISES A MEDIA CONCERN BASED IN ATLANTA OPERATES THE NATION'S SIXTHLARGEST CABLE SYSTEM 9311240117 931124 LEISURE & ARTS BOOKSHELF MELTING POT BOILS OVER BY RICHARD ESTRADA MEXICAN AMERICANS THE AMBIVALENT MINORITY FREE PRESS 463 PAGES 2795 IS A CRITIQUE OF A GREATLY ALTERED SOCIAL AND POLITICAL LANDSCAPE NOT SO LONG AGO IMMIGRANTS COULD LOOK UPON MANY THINGS TO EASE THEIR WAY INTO THE AMERICAN MAINSTREAM NOT JUST LIVELY WARD POLITICS WIDESPREAD PATRONAGE AND PARTY NOMINATING CONVENTIONS BUT ALSO SUCH INSTITUTIONS AS MUTUAL AID SOCIETIES CHURCHES LABOR UNIONS COMMUNITY NEWSPAPERS STABLE COMMUNITIES AND A PUBLIC SCHOOL SYSTEM THAT CHAMPIONED AMERICANIZATION TODAY'S LANDSCAPE INCLUDES EXPENSIVE POLITICAL COMMERCIALS ON TELEVISION COSTLY DIRECTMAIL CAMPAIGNS EAGER POLLSTERS AND EXPENSIVE CONSULTANTS PRIMARY ELECTIONS A MEDIA THAT FOMENTS IMPATIENCE AMONG MINORITIES AFFIRMATIVE ACTION CROWNED BY THE VOTING RIGHTS ACT ACTIVIST COMMUNITY ORGANIZATIONS ELITE ETHNIC NETWORKS FUNDED BY NORTHEASTERN LIBERAL FOUNDATIONS AND ANSWERABLE TO NO CONSTITUENCY UNUSUALLY HIGH LABOR MOBILITY MULTICULTURALIST PUBLIC SCHOOLS AND AN ENTRENCHED SOCIAL WELFARE BUREAUCRACY JUST WHAT ALL THIS MEANS FOR THE COUNTRY'S LARGEST HISPANIC GROUP AND SECONDLARGEST MINORITY GROUP IS A BIG TOPIC HANDLED WITH MUCH SKILL AND CARE BY PETER SKERRY A POLITICAL SCIENTIST AND UCLA'S DIRECTOR OF WASHINGTON PROGRAMS FOR THE CENTER FOR AMERICAN POLITICS AND PUBLIC POLICY THERE IS LITTLE TO BE GAINED MR SKERRY WRITES BY OBSESSING OVER PAST WRONGS WITHOUT SLIGHTING THE INJUSTICES SUFFERED OVER THE YEARS HE MAKES A POINTED COMPARISON WITH AFRICANAMERICANS WHO WERE ONCE ENSLAVED THE WAY MEXICANAMERICANS NEVER WERE THE POLITICAL REWARDS OF AN ALTERED POLITICAL SYSTEM MR SKERRY ARGUES ARE PROMOTING THE POLITICS OF RACIAL AGGRIEVEMENT AMONG MEXICANAMERICANS HE'S PARTICULARLY TOUGH BUT FAIR ON FORMER SAN ANTONIO MAYOR AND CURRENT SECRETARY OF HOUSING AND URBAN DEVELOPMENT HENRY CISNEROS WHO HAS NOT BEEN ABOVE DEMAGOGICALLY IMPLYING THAT HIS PEOPLE DESERVE SPECIAL CONSIDERATION FOR HAVING BEEN HERE FIRST ACTUALLY THE VAST MAJORITY OF MEXICANAMERICANS ARE EITHER IMMIGRANTS OR THE DESCENDANTS OF IMMIGRANTS WHO ENTERED AFTER 1848 THE YEAR IN WHICH THE US ANNEXED THE SOUTHWEST OTHER MEXICANAMERICAN LEADERS LIKE TO DRAW ANALOGIES BETWEEN MEXICANAMERICANS AND SAY 19THCENTURY IRISH IMMIGRANTS FLEEING THE FAMINE THESE SHIFTING SELFIMAGES AS A RACIALLY OPPRESSED MINORITY ONE MOMENT AND A TRADITIONAL IMMIGRANT ETHNIC GROUP THE NEXT EXPLAIN THE BOOK'S SUBTITLE THE AMBIVALENT MINORITY MR SKERRY BLAMES THE VOTING RIGHTS ACT FOR FOSTERING SUCH AMBIVALENCE ORIGINALLY PASSED IN 1965 TO LOWER BARRIERS TO AFRICANAMERICAN POLITICAL PARTICIPATION IT WAS EXTENDED TO INCLUDE MEXICANAMERICANS IN 1975 IMMIGRATION IS THE WILD CARD IN THIS SCENARIO THOUGH HARDLY ALL MEXICANAMERICANS WELCOME NEW ARRIVALS MEXICANAMERICAN LEADERS COVET NEWCOMERS BECAUSE THEY REPLENISH THEIR POLITICAL BASE MEXICO IS THE LARGEST COUNTRY OF EMIGRATION ON EARTH IT COMES AS NO REAL SURPRISE THAT AFRICANAMERICANS CONFRONTING THEIR OWN PENDING DISPLACEMENT AS AMERICA'S LARGEST MINORITY GROUP RUE THE EXTENSION OF THEIR OWN HARDWON AFFIRMATIVE ACTION GAINS TO JUSTARRIVED NONCITIZENS CLOGGING THE RANKS OF THE UNSKILLED IN A SOCIETY WITH EVER LESS NEED OF THEM MR SKERRY MAKES THIS CASE BUT HE MAY BE UNDERSTATING THE IMPACT OF THE TRANSITION FROM AN INDUSTRIAL TO A POSTINDUSTRIAL ECONOMY PARTICULARLY ON JOB SEEKERS LACKING SKILLS IN THE 1980S FOR EXAMPLE OVER 50 OF THE JOBS CREATED WERE IN SERVICE SECTORS REQUIRING RELATIVELY HIGH LEVELS OF SKILLS AND EDUCATION LOWSKILL AND NOSKILL JOBS GREW AT A SINGLEDIGIT RATE OR EXPERIENCED NEGATIVE GROWTH YET THE PROSPECTS OF ADEQUATE JOB RETRAINING AND EDUCATION FOR SUCH WORKERS ARE UNCERTAIN AT BEST MOREOVER COMPETITION FOR LOWSKILL JOBS IS EXPANDING THROUGH UNPRECEDENTED LEVELS OF UNSKILLED IMMIGRATION LEGAL AND ILLEGAL EVEN IF OVERALL ASSIMILATION IS OCCURRING THE DANGER OF HAVING ONE PART OF THE GROUP JOIN THE MAINSTREAM WHILE ANOTHER PART DESCENDS INTO A SOCIOECONOMIC FREEFALL CAN'T BE BRUSHED ASIDE AMONG RESIDENTS OF MEXICAN ORIGIN TODAY SCHOOL DROPOUT RATES ARE INORDINATELY HIGH AS ARE THE RATES OF CHILD POVERTY COMBINED WITH GRADUALLY RISING RATES OF SINGLEPARENT FAMILIES THESE TRENDS ARE WORRISOME THOUGH MR SKERRY REPEATEDLY EXPRESSES HIS CONCERN THAT MASS IMMIGRATION MAY NOT BE ALTOGETHER POSITIVE FOR THE MEXICANAMERICANS WHO ARE ALREADY HERE HE MIGHT HAVE DEVELOPED THIS THEME A BIT MORE THE CURRENT IMMIGRATION WAVE IS NOW WELL OVER 20 YEARS OLD AND SHOWS NO SIGNS OF CRESTING AND UNLIKE IN THE POSTWORLD WAR II YEARS THERE IS NO MANUFACTURING BOOM ON THE HORIZON CURIOUSLY THE COMMUNITY'S DIVERSE RESPONSES TO NAFTA DID NOT INTEREST HIM MY OWN FEELING IS THAT THERE IS MUCH SUPPORT BUT ALSO CONCERN THAT NOT ENOUGH WILL BE DONE TO UPGRADE BORDER INFRASTRUCTURE AND IN JOB RETRAINING EVEN SO MR SKERRY'S INTELLIGENT BOOK IS A PROVOCATIVE CONTRIBUTION TO THE EXISTING LITERATURE ON ETHNIC PLURALISM IN AMERICA IN THE MONTHS AHEAD IT SHOULD BECOME THE STARTING POINT FOR SERIOUS DISCUSSION ABOUT MEXICANAMERICANS MR ESTRADA IS ASSOCIATE EDITOR OF THE DALLAS MORNING NEWS EDITORIAL PAGE 9311240116 931124 ABREAST OF THE MARKET INDUSTRIALS REBOUND GAINING 392 AS BOND RALLY ALLAYS SOME FEARS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS REBOUNDED SLIGHTLY AS A SURPRISE BOND MARKET RALLY PUSHED LONGTERM INTEREST RATES LOWER FOR THE FIRST TIME IN MORE THAN A WEEK THE RISE IN BOND PRICES WHICH CLIMB AS INTEREST RATES FALL HELPED TO ALLAY FEARS THAT INVESTORS WILL YANK MONEY FROM STOCKS SOON AND FUNNEL IT INTO HIGHERYIELDING FIXEDINCOME INVESTMENTS AFTER TUMBLING MORE THAN 20 POINTS MONDAY THE DOW JONES INDUSTRIAL AVERAGE ADDED 392 POINTS TO 367417 STANDARD & POOR'S 500STOCK INDEX GAINED 190 TO 46103 AND THE NASDAQ COMPOSITE INDEX JUMPED 869 TO 74682 AFTER LOSING MORE THAN 5 OF ITS VALUE IN THE PAST SIX TRADING DAYS IT WAS THE FIRST TIME IN MORE THAN A WEEK THAT ALL THREE MAJOR MARKET INDEXES POSTED GAINS ADVANCING ISSUES OUTNUMBERED DECLINERS 1162 TO 898 REVERSING THE TREND THAT DEVELOPED AS THE MARKET DROPPED RECENTLY VOLUME ON THE BIG BOARD EASED TO 259237130 SHARES FROM 276779870 SHARES MONDAY PETER CANELO STOCK STRATEGIST AT NATWEST SECURITIES SAID STOCKS STARTED RISING YESTERDAY AFTER IT APPEARED THAT THE RELENTLESS RISE IN INTEREST RATES HAD STOPPED AT LEAST TEMPORARILY ENCOURAGED BY THE PLUNGE IN OIL AND OTHER COMMODITY PRICES BOND INVESTORS DROVE THE YIELD ON THE TREASURY'S 30YEAR BOND TO 631 FROM 638 MONDAY IT WAS THE FIRST TIME SINCE NOV 12 THAT THE YIELD ON THE LONGTERM BOND HAD FALLEN THE SELLOFF IN THE BOND MARKET WAS SO SEVERE AND SO SWIFT THAT I THINK WE ARE GOING TO HAVE A RESPITE HERE AND THAT'S GOING TO TURN STOCKS AROUND PREDICTED MR CANELO HE SAID HE WAS PARTICULARLY ENCOURAGED TO FIND THAT YESTERDAY'S DROP IN RATES WAS ACCOMPANIED BY GAINS IN THE DOW JONES UTILITY AVERAGE SOME TECHNICAL ANALYSTS VIEW THE INDEX OF 15 UTILITY STOCKS AS A LEADING INDICATOR OF INTEREST RATES IN RECENT WEEKS WHEN BOND PRICES HAVE RALLIED THE UTILITY AVERAGE FREQUENTLY FALTERED THIS DIVERGENCE CAUSED SOME ANALYSTS TO BELIEVE THOSE BOND MARKET RALLIES WERE ONLY TEMPORARY BUT YESTERDAY THE DOW JONES UTILITY AVERAGE GAINED 191 POINTS TO 22588 WHAT'S MORE OTHER INTERESTRATE SENSITIVE STOCKS SUCH AS BANKS ALSO CAME TO LIFE CHEMICAL BANKING JUMPED 7/8 TO 37 CITICORP 1 1/4 TO 35 WELLS FARGO 2 3/4 TO 117 1/2 AND BANKAMERICA 1 3/8 TO 42 5/8 BY FAR THE MOST ACTIVE BIG BOARD STOCK WAS BRITISH PETROLEUM WHICH GAINED 1 7/8 TO 61 1/2 ON VOLUME OF 311 MILLION AMERICAN DEPOSITARY RECEIPTS COMPARED WITH AVERAGE DAILY VOLUME OF 11 MILLION THE HUGE OIL AND GAS COMPANY ROSE AFTER A RALLY ON THE LONDON STOCK EXCHANGE EARLIER IN THE DAY FOLLOWING THE BANK OF ENGLAND'S CUT OF 1/2 POINT IN ITS BASE RATE TO 55 THE COMPANY ALSO SAID ITS BP OIL UNIT INTRODUCED ITS STAGE II VAPOR RECOVERY EQUIPMENT AT ALL OF ITS SERVICE STATIONS IN THE ATLANTA AND NASHVILLE AREAS AMR CORP PARENT OF AMERICAN AIRLINES FELL 3 1/2 TO 65 1/8 ON 22 MILLION SHARES AMERICAN AND ITS STRIKING FLIGHT ATTENDANTS HAVE AGREED TO ACCEPT ARBITRATION OF THEIR DISPUTE AFTER PRESIDENT CLINTON INTERVENED MERRILL LYNCH AND BEAR STEARNS BOTH DOWNGRADED SHARES OF AMR DURING THE DAY AND THE COMPANY DENIED A PUBLISHED REPORT OUT OF LOS ANGELES THAT INDICATED ROBERT CRANDALL CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE MIGHT RESIGN SCIENTIFICATLANTA INC SHARES JUMPED 2 OR 67 TO 31 7/8 AFTER JOSEPHTHAL LYONS & ROSS INITIATED COVERAGE OF THE STOCK WITH A BUY RATING JOSEPHTHAL SAID IT EXPECTS THE COMPANY TO EARN 118 A SHARE IN FISCAL 1994 AND 155 IN 1995 THE COMPANY HAD OPERATING PROFIT OF 65 CENTS A SHARE EXCLUDING NONRECURRING CHARGES IN 1992 TECHNOLOGY STOCKS WHICH ARE HEAVILY WEIGHTED IN THE NASDAQ MARKET ATTRACTED SIGNIFICANT INTEREST THE SEGMENT ESPECIALLY SEMICONDUCTOR AND COMMUNICATIONSRELATED ISSUES HAVE BEEN PARTICULARLY WEAK TEXAS INSTRUMENTS ROSE 3 TO 64 MOTOROLA GAINED 2 3/8 TO 95 7/8 AND INTERNATIONAL BUSINESS MACHINES INCREASED 1 1/8 TO 53 1/8 ON NASDAQ NEWBRIDGE NETWORKS ADDED 1 3/4 TO 54 7/8 AND INTEL CLIMBED 1 3/8 TO 58 7/8 DAVE PETTIT AND THOMAS GRANAHAN CONTRIBUTED TO THIS ARTICLE 9311240115 931124 BUSINESS BRIEF CENTRAL MAINE POWER CORP RATE INCREASE OF 3 IS LESS THAN ONETHIRD OF REQUEST CENTRAL MAINE POWER CORP AUGUSTA MAINE RECEIVED A 26 MILLION OR 3 ANNUAL RATE INCREASE LESS THAN ONETHIRD WHAT THE UTILITY REQUESTED CLARK IRWIN COORDINATOR OF FINANCIAL COMMUNICATIONS FOR THE UTILITY SAID THE RAISE WILL FORCE IT TO CUT COSTS AND MAY LEAD TO LAYOFFS AMONG ITS 2200 WORKERS HE ALSO SAID THAT IN LIGHT OF THE SMALLERTHANREQUESTED INCREASE DIRECTORS ARE EXPECTED TO REVIEW THE UTILITY'S 39CENT QUARTERLY DIVIDEND AT THEIR MEETING DEC 15 STANDARD & POOR'S CORP HAD PUT CENTRAL MAINE POWER'S DEBT ON CREDIT WATCH WITH NEGATIVE IMPLICATIONS IN AUGUST SAYING IT WOULD EVALUATE THE CREDIT BASED ON THE AMOUNT OF RATE INCREASE AND THE WAY IT WAS STRUCTURED 9311240114 931124 BUSINESS BRIEF SCIENTIFICATLANTA INC ONETIME EARNINGS CHARGE EXPECTED DUE TO SETTLEMENT SCIENTIFICATLANTA INC SAID IT EXPECTS TO TAKE A 175 MILLION PRETAX CHARGE AGAINST FISCAL SECONDQUARTER EARNINGS AFTER REACHING A TENTATIVE SETTLEMENT IN A CLASSACTION LAWSUIT AGAINST THE COMPANY THE CHARGE AMOUNTING TO 31 CENTS A SHARE AFTER TAXES WILL BE APPLIED TO THE CURRENT QUARTER ENDING DEC 31 THE NORCROSS GA ELECTRONICS MANUFACTURER SAID THE ONETIME CHARGE WILL PROBABLY RESULT IN A LOSS FOR THE QUARTER A COMPANY SPOKESMAN SAID IN THE YEAREARLIER QUARTER SCIENTIFICATLANTA REPORTED EARNINGS OF 14 MILLION OR FOUR CENTS A SHARE ON REVENUE OF 1866 MILLION COMPLETION OF THE SETTLEMENT IS SUBJECT TO FEDERAL COURT APPROVAL THE LAWSUIT FILED IN 1988 ALLEGES THE COMPANY FAILED TO FULLY INFORM THE INVESTMENT COMMUNITY ABOUT THE DIFFICULTIES INVOLVED IN MAKING AND DELIVERING CABLE TELEVISION SETTOP CONVERTERS IN THE EARLY 1980S THE COMPANY SPOKESMAN SAID THE COMPANY DENIED THE CHARGES AND CONTINUES TO MAINTAIN THAT IT FULLY DISCLOSED THE RISKS INVOLVED IN INTRODUCING THAT PRODUCT 9311240113 931124 BUSINESS BRIEF BROWNFORMAN CORP SECONDPERIOD RESULTS TRAIL EXPECTATIONS OF ANALYSTS BROWNFORMAN CORP REPORTING LESSTHANEXPECTED SECONDQUARTER RESULTS DUE TO SLUGGISH BEVERAGE SALES NOW SAYS IT'S NO LONGER CERTAIN THAT FISCAL 1994 EARNINGS EXCLUDING SPECIAL ITEMS WILL IMPROVE FROM THE YEAR BEFORE IN AUGUST THE MAKER OF ALCOHOLIC BEVERAGES LUGGAGE AND CHINA HAD FORECAST MODERATE OPERATING EARNINGS GROWTH FOR FISCAL 1994 BROWNFORMAN REPORTED NET OF 625 MILLION OR 227 A SHARE FOR ITS SECOND QUARTER ENDED OCT 31 COMPARED WITH 512 MILLION OR 186 A SHARE THE YEAR EARLIER HOWEVER WITHOUT SPECIAL ITEMS AND THE EFFECT OF A NONCASH CHARGE TO ADJUST ITS DEFERRED LIABILITY FOR HIGHER TAXES THE COMPANY SAID IT EARNED 175 A SHARE IN THE LATEST QUARTER ANALYSTS HAD EXPECTED THE COMPANY TO REPORT FLAT OPERATING PROFIT THE COMPANY BLAMED THE LOWER OPERATING RESULTS ON A PROFIT DECLINE FROM ITS JACK DANIEL'S COUNTRY COCKTAILS AS WELL AS PROMOTIONAL COSTS FOR THE INTRODUCTION OF SOUTHERN COMFORT COCKTAILS OVERALL BEVERAGE SALES SLID 1 9311240112 931124 TRAVELERS FACE SLOWDOWN AT UNITED AIR AS RIVAL AMERICAN RESUMES MOST FLIGHTS BY JAMES S HIRSCH AND MICHAEL J MCCARTHY STAFF REPORTERS OF THE WALL STREET JOURNAL WHILE AMERICAN AIRLINES SAID 80 OF ITS FLIGHTS WOULD BE OPERATING TODAY UNIONS AT ANOTHER BIG CARRIER THREATENED TO CONTINUE DISRUPTING HOLIDAY TRAVEL THE PILOTS MACHINISTS AND FLIGHT ATTENDANTS' UNIONS AT UNITED AIRLINES TOLD MEMBERS TO LAUNCH A WORK SLOWDOWN TO DOVETAIL WITH THE FIVEDAY FLIGHT ATTENDANTS' WALKOUT AT AMERICAN AND TO CONTINUE DURING THE BUSY THANKSGIVING PERIOD THE UNIONS ARE ANGRY THAT UNITED IS CONSIDERING SHEDDING SOME OPERATIONS INCLUDING SHORTHAUL ROUTES AND AN ENGINEMAINTENANCE FACILITY TO CUT COSTS THUS THREATENING THOUSANDS OF JOBS UNITED WHICH RUNS NECK AND NECK WITH AMERICAN AS THE NATION'S LARGEST CARRIER SAID YESTERDAY THAT IT SEES NO EVIDENCE OF A WORK SLOWDOWN BUT A SPOKESMAN FOR UNITED'S PARENT UAL CORP SAID THE AIRLINE IS DRAFTING UNSPECIFIED PLANS TO MAKE TRAVEL AS SMOOTH AND HASSLEFREE AS POSSIBLE IN THE EVENT OF SUCH AN ACTION FOR TRAVELERS THE SPECTER OF ADDITIONAL LABOR STRIFE IS DISCONCERTING FOLLOWING THE AMERICAN STRIKE WHICH ENDED MONDAY AFTER SHUTTING DOWN 64 OF THE AIRLINE'S SYSTEM THE AMR CORP UNIT SAID IT WAS FLYING PASSENGERS ON 60 OF ITS NORMAL SCHEDULE BY 11 AM YESTERDAY IT ANTICIPATED THAT NUMBER TO REACH 70 BY THE END OF THE DAY AND 80 FOR TODAYWHICH ALONG WITH THIS SUNDAY ARE TWO OF THE HEAVIEST TRAVEL DAYS OF THE YEAR UNTIL THE AIRLINE IS FULLY OPERATING WHICH IS SUPPOSED TO OCCUR BY THANKSGIVING DAY TRAVEL ANXIETY REMAINS HIGH TRUE AMERICAN SAID IT WILL NOW BE ABLE TO INFORM CUSTOMERS ABOUT THEIR FLIGHT STATUS A LUXURY THAT WAS LOST DURING THE STRIKE BUT THE SHEER SIZE OF AMERICAN COMPLICATES A QUICK RETURN TO NORMALCY IT HAS 2500 DAILY DEPARTURES ACCOUNTS FOR 20 OF THE DOMESTIC MARKET AND FLIES ON AVERAGE 230000 PASSENGERS EACH DAY AMERICAN HAS TAKEN STEPS TO PROTECT PASSENGERS WHO'VE DOUBLEBOOKED FLIGHTS ON AMERICAN AND OTHER CARRIERS FROM INCURRING ANY FINANCIAL LOSS TYPICALLY A TRAVELER WHO HAS BOUGHT AN ADVANCEPURCHASE DISCOUNT TICKET CANNOT USE THAT TICKET ON ANOTHER AIRLINE A FULLFARE TICKET CAN BE TRANSFERRED HOWEVER AFTER THE STRIKE BEGAN AMERICAN ANNOUNCED THAT ITS DISCOUNT TICKETS WOULD BE VALID ON OTHER CARRIERS IF SPACE PERMITTED EVEN THOUGH THE STRIKE IS OVER AMERICAN WILL ALLOW ITS DISCOUNT TICKETS TO BE USED ON OTHER AIRLINES UNTIL NOV 29 AND MOST CARRIERS ARE ACCEPTING THEM THEREFORE AMERICAN PASSENGERS WHO FEAR THEIR FLIGHT WILL BE CANCELED OR WHO SIMPLY WANT TO SWITCH AIRLINES PERHAPS FOR AN EARLIER FLIGHT CAN DO SO MOREOVER THE FORT WORTH TEXAS CARRIER IS STICKING WITH ITS POLICY ANNOUNCED DURING THE STRIKE THAT PASSENGERS IT CANNOT ACCOMMODATE THROUGH NOV 29 WILL RECEIVE A TICKET REFUND PLUS A 100 VOUCHER FOR A FUTURE FLIGHT AT UNITED THE UNIONS FAILED EARLIER THIS MONTH TO REACH AN AGREEMENT TO ACQUIRE A MAJORITY STAKE IN THE CARRIER IN EXCHANGE FOR CONCESSIONS NOW THE UNIONS HAVE VOWED TO FIGHT COSTCUTTING EFFORTS BY THE COMPANY WE ALL FEEL PRETTY STRONGLY THAT UNITED MANAGEMENT HAS UNDERESTIMATED HOW MUCH LABOR UNREST WILL DISRUPT THE COMPANY SAYS KEVIN LUM PRESIDENT OF THE ASSOCIATION OF FLIGHT ATTENDANTS AT UNITED MANAGEMENT NEEDS TO REMEMBER THAT WE'RE NOT INVISIBLE 9311240111 931124 SEC ASKS AGENCIES IN OKLAHOMA FOR DATA ABOUT BOND ISSUES WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION HAS ASKED TWO STATE AGENCIES IN OKLAHOMA FOR A BROAD RANGE OF DATA ABOUT A GROUP OF BOND ISSUES THAT HELP FINANCE TURNPIKES AND LOCAL SCHOOLS THE SEC INQUIRIES PREVIOUSLY REPORTED IN OKLAHOMA NEWSPAPERS AND THE TRADE PUBLICATION THE BOND BUYER WERE DIRECTED TO THE OKLAHOMA TURNPIKE AUTHORITY AND THE STATE COMMISSION THAT ADVISES COUNTIES SCHOOL DISTRICTS AND OTHER LOCAL ENTITIES ON SECURITIES ISSUES A SPOKESWOMAN FOR THE TURNPIKE AUTHORITY SAID THE SEC INQUIRED ABOUT THE 680 MILLION REFINANCING OF THE STATE'S TURNPIKE BONDS IN 1992 MERRILL LYNCH & CO WAS SENIOR MANAGER OF THE REFINANCING IN A JOINT VENTURE WITH STIFEL NICOLAUS & CO A ST LOUISBASED SECURITIES FIRM THE SEC ASKED FOR SOME INFORMATION AND WE'RE PROVIDING THAT THE SPOKESWOMAN SAID WE DON'T HAVE ANY QUALMS ABOUT THE BOND DEAL LAWYERS IN THE ENFORCEMENT DIVISION OF THE SEC SAID THEY CAN'T COMMENT ON POSSIBLE INQUIRIES OKLAHOMA STATE BOND ADVISER JIM JOSEPH SAID THE SEC SENT ME A LETTER WITH KIND OF A LAUNDRY LIST OF DATA THAT THEY WERE COMPILING ABOUT THREE TWOPART BOND ISSUES THAT WERE USED TO GENERATE CASH FOR SCHOOL DISTRICTS AND OTHER LOCAL ENTITIES IN 1990 1991 AND 1992 THE 1992 ISSUE FOR INSTANCE GENERATED 1822 MILLION FOR SCHOOL DISTRICTS AND ABOUT 881 MILLION FOR TULSA COUNTY ALL THREE ISSUES WERE UNDERWRITTEN BY STIFEL NICOLAUS ACCORDING TO MR JOSEPH THE SEC ORIGINALLY ASKED FOR INFORMATION ABOUT ALL OF THE ENTITIES THAT PARTICIPATED IN THE BOND ISSUES BUT LATER NARROWED THAT TO SEVEN ENTITIES INCLUDING TULSA COUNTY A VOCATIONALTECHNICAL SCHOOL AND FOUR SCHOOL DISTRICTS THE SEC ASKED FOR EVERYTHING IN THE WORLD ABOUT THOSE PROGRAMS INCLUDING THE TAX TREATMENT OF INTEREST ON THE SECURITIES MR JOSEPH SAID THE ONLY COMMON LINK IS THE UNDERWRITER SPOKESMEN FOR STIFEL NICOLAUS COULDN'T BE REACHED FOR COMMENT IN A STATEMENT PROVIDED TO THE BOND BUYER THE FIRM SAID THAT THE BOND INDUSTRY IS UNDER GREAT SCRUTINY RIGHT NOW AND THE SEC AND OTHER REGULATORY BODIES ARE APPROPRIATELY BEING VERY AGGRESSIVE 9311240110 931124 WHO'S NEWS PRATT & WHITNEY HIRES BOEING CO'S ANDERSON TO LEAD ASIA REGION EAST HARTFORD CONN AIRCRAFT ENGINE MAKER PRATT & WHITNEY HIRED ANOTHER VETERAN BOEING CO OFFICIAL INVOLVED IN DEVELOPMENT OF NEW COMMERCIAL JETLINERS PRATT & WHITNEY A UNIT OF UNITED TECHNOLOGIES CORP SAID ARDELL J ANDERSON 52 YEARS OLD WILL HEAD MARKETING EFFORTS FOR ITS LARGE COMMERCIAL ENGINE BUSINESS IN ASIA AND THE PACIFIC RIM MR ANDERSON RECENTLY DIRECTED PRODUCT DEVELOPMENT FOR BOEING'S NEW 777 WIDEBODY COMMERCIAL JETLINER MR ANDERSON WILL REPORT TO JAMES T JOHNSON WHO MOVED FROM BOEING THIS PAST SUMMER TO HEAD PRATT & WHITNEY'S LARGE COMMERCIAL ENGINE BUSINESS AT BOEING MR ANDERSON HAD REPORTED TO MR JOHNSON ON SEVERAL OCCASIONS SPANNING A SIXYEAR PERIOD MR JOHNSON'S LAST POSITION AT BOEING WAS VICE PRESIDENT AND GENERAL MANAGER OF THE EVERETT DIVISON WITH RESPONSIBILITIES FOR MANUFACTURING ENGINEERING AND PRODUCT DEVELOPMENT PRATT & WHITNEY SAID MR ANDERSON WILL BECOME SENIOR VICE PRESIDENT FOR ASIA/PACIFIC EFFECTIVE DEC 1 MR ANDERSON IS THE SECOND SENIOR EXECUTIVE TO BE NAMED TO THE COMPANY'S NEW THREEPERSON REGIONALIZED MARKETING TEAM FOR THE LARGE COMMERCIAL ENGINE BUSINESS LAST SEPTEMBER ROBERT A WOLFE WAS APPOINTED SENIOR VICE PRESIDENT FOR THE AMERICAS PRATT & WHITNEY SAID IT SOON PLANS TO NAME AN EXECUTIVE RESPONSIBLE FOR THE EUROPEAN/AFRICAN/MIDDLE EASTERN MARKET 9311240108 931124 TEXAS JOURNAL A CORNY STOCKBROKER TALKS TO THE MASSES BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WALK INTO DAVID JOHNSON'S OFFICE AND IT IS IMMEDIATELY CLEAR THAT HE ISN'T JUST ANOTHER STOCKBROKER IN FACT IT'S HARD TO FIGURE OUT WHAT HE IS ALTHOUGH HIS OFFICIAL TITLE IS ASSISTANT MANAGER OF SMITH BARNEY SHEARSON'S NORTH DALLAS BRANCH THAT DOESN'T EXPLAIN THE TWO MICROPHONES THAT JUT OUT FROM BEHIND HIS DESK OR THE TELEVISION MONITORS OR THE KLEIG LIGHTS OVERHEAD ON FRIDAY FOR INSTANCE AS THE AMERICAN AIRLINES FLIGHT ATTENDANTS STRIKE WAS GETTING OFF THE GROUND EVERYBODY SEEMED TO BE CLAMORING FOR MR JOHNSON'S OPINION BUT IT WASN'T JUST CUSTOMERS SEEKING BUY AND SELL ADVICE THERE WERE ALSO REPORTERS FROM NEWSWEEK CNN AND THE CBS EVENING NEWS TO NAME A FEW ALL LINED UP TO RECORD HIS THOUGHTS AND THAT WAS IN ADDITION TO HIS WEEKLY THREEMINUTE COMMENTARY FOR THE 225 MILLION NATIONWIDE LISTENERS TO AMERICAN PUBLIC RADIO'S MARKETPLACE SEGMENT AND HIS 12 DAILY FEEDS TO KRLD RADIO IN DALLAS EACH ONE LASTING UP TO TWO MINUTES AND HIS TWICEAWEEK COMMENTARIES ON DALLAS'S WFAA CHANNEL 8 AND HIS WEEKLY COMMENTARY ON KERA RADIO ALSO IN DALLAS WHO IS THIS GUY ANYWAY MY BASIC PURPOSE IS TO MAKE BUSINESS NEWS UNDERSTANDABLE TO PEOPLE WHO ARE FORCED KICKING AND SCREAMING TO GIVE A DAMN ABOUT IT SAYS THE 44YEAROLD MR JOHNSON TO HIS FANS HE DOES JUST THAT TURNING OFTENESOTERIC ECONOMIC NEWS INTO SOMETHING THAT GIVES IT RELEVANCE TO EVERYONE HE GIVES MARKETPLACE A UNIQUE PERSPECTIVE BECAUSE HE'S A THOUSAND MILES AWAY FROM WALL STREET SAYS CAMERON SANDERS A FORMER EDITOR FOR MARKETPLACE BUT HE ADDS I'VE HEARD COMMENTS OCCASIONALLY THAT HE IS A LITTLE TOO CORN PONE A LITTLE TOO CUTE A LITTLE TOO CORNY TOO CUTE TOO CORNY CONSIDER FOR INSTANCE THE TIME WHEN SOME OF THE BIGGEST INVESTORS WERE BOTTOMFISHING SEARCHING FOR STOCKS THAT HAD BEEN BATTERED AND WERE DUE FOR A RISE AIM LOW HE ADVISED HIS AUDIENCE BECAUSE THE SMART MONEY WAS RIDING SHETLANDS OR THE TIME WHEN HE SAID A LACKLUSTER MARKET WAS JUST SITTING THERE LIKE AN ARMADILLO ON THE ROAD STINKING IT UP IT'S ALL A FAR CRY FROM MR JOHNSON'S ORIGINAL GAME PLAN A NATIVE OF DALLAS HE WENT TO THE UNIVERSITY OF THE SOUTH IN SEWANEE TENN IN THE LATE 1960S DETERMINED TO BE A WRITER BUT AFTER TAKING A YEAR OFF FROM COLLEGE TO WORK IN THE BACK OFFICE AT EF HUTTON IN DALLAS HE WAS HOOKED I LOVED THAT THE BROKERAGE BUSINESS WAS VERY DYNAMIC MR JOHNSON SAYS IT WAS HEAVEN IN 1972 HE JOINED THE FIRM AS A BROKER SOON ONE OF HIS FRIENDS AT DALLAS'S PUBLICTELEVISION STATION KERA CHANNEL 13 ASKED HIM TO ADLIB DURING PLEDGE BREAKS AND AUCTIONS HIS CAREER AS A RADIO BUSINESS ANALYST WAS BORN CHANNEL 13 OFFERED HIM HIS OWN BUSINESS SHOW BUSINESS EDITION WITH DAVID JOHNSON KRLD RADIO ASKED HIM IN THE EARLY 1980S TO SERVE AS THE STATION'S BUSINESS ANALYST THE JOB AT WFAA CHANNEL 8 BEGAN IN 1985 AND IN 1989 MR JOHNSON CAME TO MARKETPLACE GOOD QUESTION MR JOHNSON READS FIVE NEWSPAPERS EVERY MORNING AND TUNES INTO CNN AND THE CABLE NEWS BUSINESS CHANNEL BUT OTHER THAN THAT HIS ONLY PREPARATION IS 20 YEARS OF WATCHING STOCKS BONDS AND THE ECONOMY FEW AT MARKETPLACE HAVE EVER SEEN MR JOHNSON TO THEM HE'S JUST A VOICE IN DALLAS MARKETPLACE HOST DAVID BRANCACCIO IMAGINES HIM THIS WAY NICE SUITS NOT MUCH HAIR AND SIDEBURNS THAT ARE LONGER THAN FASHION WOULD DICTATE CLOSE NICE SUITS HASN'T LOST HIS HAIR SIDEBURNS CLOSELY CROPPED DESPITE HIS STARDOM MR JOHNSON SAYS HIS PRIMARY JOB IS AS A STOCKBROKER HE SAYS HE HAS LOST ONLY ONE CLIENT WHO CLAIMED HIS RADIO DUTIES IMPAIRED HIS BROKER RESPONSIBILITIES CAROL PASK A 61YEAROLD RICHARDSON HIGH SCHOOL TEACHER TEAMED UP WITH MR JOHNSON 11 YEARS AGO WHEN HER HUSBAND DIED CALLING HIM HER CELEBRITY BROKER MRS PASK LISTENS TO MR JOHNSON'S RADIO REPORTS AND REFRAINS FROM CALLING HIM WHEN SHE KNOWS HE'LL BE ON THE AIR STILL SHE SAYS WHEN I DO CALL EVEN IF I CATCH HIM AS HE'S ABOUT TO GO ON HE ALWAYS ACTS LIKE YOU'RE JUST THE PERSON HE WANTED TO TALK TO 9311240107 931124 MUTUAL FUNDS SHORT' FUND DRAWS PLENTY OF ATTENTION BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NOBODY WANTS TO BE ALONE IN A BEAR MARKET MAYBE THAT'S WHY THE ROBERTSON STEPHENS CONTRARIAN FUND HAS ALREADY ATTRACTED 85 MILLION FROM MUTUALFUND INVESTORS IN LESS THAN FIVE MONTHS THE MARKET COULD TUMBLE AT ANY TIME SAYS SMALL INVESTOR MARTIN JOHNSON A RETIRED MECHANICAL ENGINEER IN ELIZABETHTON TENN IT'S DANGEROUS TO SHORT BY MYSELF SO I'D LIKE TO TIE IN WITH SOMEBODY THAT HAS A GOOD HAND IN IT ENTER ROBERTSON STEPHENS CONTRARIAN FUND WITH ABOUT 25 OF ITS MONEY IN SHORT POSITIONS SHORTSELLING IS THE SALE OF BORROWED STOCK IN HOPES OF A PRICE DECLINE THE IDEA IS TO RETURN CHEAPER SHARES TO THE LENDER IT'S A FUND THAT IS POSITIONED TO DO WELL IN A DECLINING MARKET SAYS PAUL STEPHENS PORTFOLIO MANAGER TO SOME SMALL INVESTORS THE NEW FUND OFFERS A CHANCE TO PLAY THE MILLIONAIRE'S GAME SO WHAT IF THEY CAN'T AFFORD THE 1 MILLION HURDLE TO GET INTO A PRIVATE HEDGE FUND MAKING BEARISH BETS ROBERTSON STEPHENS CONTRARIAN HAS A 5000 MINIMUM SINCE OCT 1 IT HAS SHOWN A 16 RETURN MR STEPHENS STARTED THE FUND BECAUSE HE BELIEVES THE STOCK MARKET IS AT A LOFTY LEVEL AND VULNERABLE HE PREDICTS A BEAR MARKET SOMETIME IN THE 1993 OR 1994 TIME FRAME LAST WEEK EVERY DAY THE MARKET WAS DOWN OUR FUND HAS BEEN UP THE MANAGER SAYS THE BIGGEST RISK OF THE FUND WOULD BE IF WE HAVE A ROARING BULL MARKET THIS CONTRARIAN FUND WHICH ISN'T RELATED TO SIMILARLY NAMED FUND IS ONE OF A VERY FEW THAT USE SO MUCH OF THEIR ASSETS TO SHORT BUT IF MORE MR JOHNSONS KEEP LOOKING THEY WILL PROBABLY FIND OTHERS LIKE IT APPEARING SOON ANALYSTS SAY MONEY KEEPS FLOODING INTO THE FUND WHICH STARTED WITH JUST 5 MILLION IN JULY IT IS A NOLOAD FUND MEANING THERE ISN'T A ONETIME SALES CHARGE BUT ANNUAL EXPENSES RUN ABOUT 29 MR STEPHENS IS A FOUNDING PARTNER OF SAN FRANCISCOBASED ROBERTSON STEPHENS INVESTMENT MANAGEMENT LP AND HAS BEEN MANAGING ITS ORPHAN FUND SINCE ITS 1990 INCEPTION THAT PRIVATE PARTNERSHIP WHICH IS NOW CLOSED TO NEW INVESTORS AND HAD A HIGH MINIMUM INVESTMENT OWNS PRIMARILY SMALL OBSCURE STOCKS AND ALSO CURRENTLY HAS A 25 SHORT POSITION AFTER PERFORMANCE FEES ORPHAN FUND IS UP 44 SO FAR THIS YEAR IN THE CONTRARIAN FUND MR STEPHENS HOLDS SHORT POSITIONS IN 40 STOCKS AMONG HIS SHORTED STOCKS ABOUT 10 ARE IN COMPANIES WHOSE EARNINGS ARE SENSITIVE TO INTEREST RATES INCLUDING NATIONSBANK AND COUNTRYWIDE CREDIT INDUSTRIES RESTAURANT STOCKS COMPRISE MR STEPHENS' OTHER FAVORITE SHORTSELLING THEME HE IS SHORT OUTBACK STEAKHOUSE AND LONE STAR STEAKHOUSE & SALOON CITING A PROLIFERATION OF STEAK STOCKS HE IS SHORT SNAPPLE BEVERAGE WHICH NOW TRADES AT 22 ABOUT 26 BELOW THE YEAR'S HIGH OF 29 7/8 MR STEPHENS ALSO HAS SHORTED 15 TECHNOLOGY STOCKS INCLUDING NETWORKING CONCERNS SUCH AS WELLFLEET COMMUNICATIONS CISCO SYSTEMS AND SYNOPTICS COMMUNICATIONS THE NETWORKING STOCKS ARE CULT STOCKS LIKE THE DISK DRIVES IN 1983 THEY ARE COMING TO AN END OF THE CYCLE HE SAYS SHORTING INDIVIDUAL STOCKS ISN'T THE FUND'S ONLY BEARISH BET ABOUT 4 OF THE FUND IS IN S&P 500 INDEX PUT OPTIONS ESSENTIALLY A BET THAT THE WHOLE STOCK MARKET WILL DECLINE WHAT ELSE IS IN THE FUND IT'S NOT ALL NEGATIVE PLAYS ABOUT 25 OF THE FUND IS INVESTED IN GROWTH GOLDMINING STOCKS SUCH AS VENEZUELAN GOLDFIELDS AND MONTREALBASED CAMBIOR INC WE ARE ALREADY SOWING THE SEEDS OF INFLATION AND I WANT TO BE IN HARD ASSETS MR STEPHENS SAYS HIS OTHER INFLATIONBUSTER INVESTMENTS INCLUDE LARGE HOLDINGS IN BASE METALS 15 OF THE FUND REAL ESTATE AND PAPER STOCKS MUTUAL FUNDS HAVE BEEN HELD BACK FROM SHORTING BY WHAT HAS BEEN NICKNAMED THE SHORTSHORT RULE THANKS TO FEDERAL TAX LAW WHICH REQUIRES THAT A FUND DERIVE LESS THAN 30 OF ITS GROSS INCOME FROM SECURITIES HELD LESS THAN THREE MONTHS A PARTNERSHIP WOULDN'T BE SUBJECT TO THE RULE BUT SHORTSELLING IS OFTEN AN INANDOUT PROPOSITION SO A FUND THAT DOES A LOT OF SHORTING COULD EASILY RUN AFOUL OF THE RULE DESPITE THE HURDLES A FEW OTHER FUNDS DO EMPLOY SHORT SALES THE KAUFMANN FUND HAS ABOUT 11 OF ITS ASSETS IN SHORTS WHICH ITS MANAGERS REFER TO AS A HEDGE HOWEVER THE DOMINANT PART OF THE FUND'S GAINS COME FROM THE STOCKS IT OWNS AMONG THE FEW FUNDS THAT ASPIRE TO HEDGEFUNDLIKE FLEXIBILITY ARE DREYFUS CORP'S STRATEGIC STOCK FUNDS LAUNCHED JUST BEFORE THE 1987 CRASH DREYFUS STRATEGIC INVESTING HAD ITS BEST YEAR AGAINST THE S&P 500 IN 1987 TOPPING THAT INDEX BY A WIDE MARGIN ANOTHER FUND DREYFUS STRATEGIC WORLD INVESTING LP CAN BE AS MUCH AS 25 SHORT IN FIVE YEARS IT HAS BEATEN THE MARKET ONCE IN 1990 THOUGH IT'S UP 114 THIS YEAR MONITREND INVESTMENT MANAGEMENT IS LAUNCHING THE NEW MILLENNIUM TECHNOLOGY SERIES WHICH CAN SHORT AS MUCH AS 25 OF ITS ASSETS THE SAME LIMIT AS ROBERTSON STEPHENS CONTRARIAN MONITREND'S FUND HASN'T STARTED TO BUY STOCKS YET SAYS ITS MANAGER MICHAEL MURPHY EDITOR OF THE OVERPRICED STOCK SERVICE NEWSLETTER IN HALF MOON BAY CALIF BUT INVESTING IN THESE KINDS OF FUNDS ISN'T NECESSARILY THE BEST WAY TO PREPARE FOR A BEAR MARKET INVESTMENT ADVISERS SAY IF YOU THINK THE MARKET IS GOING DOWN THEN GO TO CASH SAYS KURT BROUWER OF BROUWER & JANACHOWSKI INC A SAN FRANCISCO ADVISORY FIRM SHORTING IS SOMETHING THAT IS NOT VERY PRODUCTIVE FOR MOST PEOPLE IT'S EASY TO GET HAMMERED 9311240106 931124 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRITAIN BLOCKED A EUROPEAN COMMUNITY PROPOSAL TO ALLOW CHILDCARE LEAVE AND VOWED A LEGAL CHALLENGE TO AN EC RULE CAPPING THE WORKWEEK AT 48 HOURS THE TWO MOVES AT A MEETING OF EC SOCIAL AFFAIRS MINISTERS UNDERLINED THE DEEP SPLIT ON EMPLOYMENT POLICIES BETWEEN BRITAIN AND OTHER EC COUNTRIES FEARING BRITAIN WOULD LURE INVESTMENT BY ALLOWING FEWER BENEFITS AND LOWER WAGES THE OTHER 11 MEMBERS WERE DIVIDED ON GIVING A PARENTALLEAVE EXEMPTION TO BRITAIN WHICH OPPOSES IT AS TOO COSTLY TO INDUSTRY DESPITE ITS WIDE LATITUDE SUCH AS GRANTING TIME OFF WITH OR WITHOUT PAY THE MINISTERS ADOPTED LEGISLATION TO MAKE WORKWEEKS AVERAGE 48 HOURS INCLUDING OVERTIME AND SET MINIMUM TIME OFF AT 11 HOURS A DAY MAXIMUM NIGHT SHIFTS OF EIGHT HOURS ON AVERAGE AT LEAST ONE DAY OFF A WEEK AND FOUR WEEKS OF VACATION A YEAR THOUGH BRITAIN GOT SEVEN EXTRA YEARS TO IMPOSE THE 48HOUR LIMIT IT PLANS AN EC COURT CHALLENGE TO THE MEASURE'S ADOPTION AS A HEALTH AND SAFETY RULE THE MINISTERS ALSO SET LIMITS ON WORK BY CHILDREN THE PHILIPPINES AND THE INTERNATIONAL MONETARY FUND IN JANUARY WILL RESUME STALLED TALKS ON A NEW ECONOMIC PROGRAM PHILIPPINE OFFICIALS HAVE WEIGHED A LESS STRINGENT SHORTTERM PROGRAM AS A FIRST STEP TO END THE NATION'S 31YEAR DEPENDENCE ON THE FUND THE GOVERNMENT NEEDS AN IMF PACT TO RESCHEDULE PART OF ITS FOREIGN DEBT AND TO GET LOAN EXTENSIONS THE ADMINISTRATION BACKS REFORMS SUCH AS OVERHAULING THE BANKING INDUSTRY AND TAX SYSTEM BUT LAWMAKERS HAVE PASSED ONLY SOME OF THE MEASURES THE IMF REQUIRES PRIME MINISTER BENAZIR BHUTTO ORDERED THE PAKISTANI GOVERNMENT TO RESERVE 5 OF ITS JOBS FOR WOMEN THE CIVIL SERVICE EMPLOYS FEW WOMEN DESPITE PREVIOUS GOVERNMENTS' PLEDGES TO GIVE THEM SPECIAL CONSIDERATION IN COMPETING FOR THE JOBS IN THE MALEDOMINATED SOCIETY THE MONTHOLD CABINET CITING ALLEGED POLICE VIOLENCE AGAINST WOMEN ALSO WANTS A SEPARATE WOMEN'S POLICE FORCE AND THE RULING COALITION PLANS A CONSTITUTIONAL AMENDMENT TO RESTORE SPECIAL PARLIAMENTARY SEATS FOR WOMEN THESE WERE ABOLISHED IN 1990 SOUTH KOREA PLANS NEXT YEAR TO ALLOW COMPANIES WHOLLY OWNED BY FOREIGN INTERESTS TO DO CONSTRUCTION WORK TREATING THEM EQUALLY WITH KOREAN ENTERPRISES THE LIBERALIZATION PLAN WHICH ALSO WOULD ALLOW JOINTVENTURE DESIGN OF CONSTRUCTION PROJECTS FROM 1996 IS CONTINGENT ON AN AGREEMENT IN MULTILATERAL TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE KOREAN LAW NOW BANS COMPANIES WITH FOREIGN OWNERSHIP EXCEEDING 50 FROM PARTICIPATING IN CONSTRUCTION JOBS AZERBAIJAN TOOK DRASTIC ACTIONS TO TRY TO STABILIZE THE ECONOMY BADLY HURT BY WAR WITH NEIGHBORING ARMENIA OVER DISPUTED TERRITORY THE AZERBAIJANI MEASURES INCLUDED AN 850 JUMP IN BREAD PRICES THE GOVERNMENT OF THE FORMER SOVIET REPUBLIC SAID IT COULDN'T AFFORD TO SUBSIDIZE BREAD PRODUCTION ANY LONGER IT ALSO RAISED THE MINIMUM MONTHLY WAGE TO 900 MANATS 350 FROM 500 MANATS BREAD NOW SELLS FOR AS MUCH AS 300 MANATS A LOAF A DAY EARLIER AZERBAIJAN INCREASED DOMESTIC PRICES FOR OIL AND NATURAL GAS UP TO 600 ROMANIA BOOSTED MOTORFUEL PRICES 21 PASSING ON TO CONSUMERS THE RISING COSTS OF IMPORTING FUEL INCLUDING AN INCREASE IN EARLY OCTOBER GASOLINE PRICES ARE UP 60 A LITER OF GAS NOW SELLS FOR 400 LEI 37 US CENTS AND DIESEL FUEL FOR 290 LEI AT THESE PRICES BUYING 100 LITERS OR 26 GALLONS OF GAS WOULD EAT UP TWO WEEKS' PAY WITH MANY OF ITS OIL WELLS DEPLETED ROMANIA IMPORTS MORE THAN HALF ITS NEEDS FOR GASOLINE WHICH HAS GROWN COSTLIER AS THE LEU'S VALUE DROPPED STEADILY AGAINST OTHER CURRENCIES THIS YEAR FOLLOWING A WAVE OF PROTESTS INDONESIA'S STATELICENSED WEEKLY LOTTERY WAS TEMPORARILY HALTED BY PT ARTHANDANA KRIYA THE COMPANY HIRED TO RUN IT PENDING A PARLIAMENTARY HEARING TOMORROW MUSLIM GROUPS CONTEND THE LOTTERY VIOLATES THE ISLAMIC PROHIBITION OF GAMBLING AND IMPOVERISHES RURAL INDONESIANS OFFICIALS HAVE INDICATED THE POSSIBILITY OF CURBING OR DISCONTINUING THE LOTTERY A SOURCE OF FUNDING FOR CHARITIES AND YOUTH EDUCATIONAL AND RELIGIOUS GROUPS THE ISSUE CREATES A PROBLEM FOR PRESIDENT SUHARTO HE MAY HAVE LITTLE CHOICE BUT TO GIVE IN TO MUSLIM PROTESTERS BUT IF HE DOES THIS COULD EMBOLDEN ACTIVISTS TO DEMONSTRATE ON OTHER ISLAMIC ISSUES SUCH AS WHETHER TO SET UP ISLAMIC COURTS MR SUHARTO HAS SOUGHT ISLAMIC GROUPS' SUPPORT APPARENTLY AS A COUNTERWEIGHT TO THE MILITARY WHOSE POLITICAL STRENGTH HAS DIMINISHED THOUGH MORE THAN 85 OF INDONESIA'S 185 MILLION PEOPLE ARE MUSLIM MR SUHARTO HAS WORKED TO ENSURE THAT THE COUNTRY ISN'T RUN AS A RELIGIOUS STATE INDONESIA FACES A SOCIAL TIME BOMB AS 38 OF THE WORK FORCE OR 29 MILLION PEOPLE ARE UNEMPLOYED THE JOBLESS RATE IS EXPECTED TO CONTINUE GROWING PARTLY BECAUSE MOST INDUSTRIES ARE SITUATED ON THE ISLAND OF JAVA A MOSCOW COURT RULED ILLEGAL THE RUSSIAN GOVERNMENT'S SUSPENSION OF THE MILITANT PROCOMMUNIST NEWSPAPER SOVIETSKAYA ROSSIA AFTER A HARDLINE UPRISING LAST MONTH BARRING AN APPEAL BY AUTHORITIES THE OPPOSITION PAPER COULD RESUME PUBLICATION WITHIN 10 DAYS FIFTEEN OTHER PAPERS REMAIN BANNED OR SUSPENDED 9311240105 931124 YOUR MONEY MATTERS YEAREND FINANCIAL PLANNING STOCK OPTIONS CAN BE A VALUABLE TAXCUTTING TOOL BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS THE 1993 TAX INCREASES DROVE MICHAEL J BLUMENFELD CHAIRMAN OF FASTGROWING SPORT SUPPLY GROUP INC TO RADICAL MEASURES HE DECIDED TO TAKE STOCK OPTIONS IN LIEU OF HIS FULL SALARY OF AT LEAST 300000 THIS YEAR THE MOVE NOT ONLY PUTS MR BLUMENFELD IN A POSITION TO PROFIT HANDSOMELY IF HIS COMPANY CONTINUES TO PROSPER IT ALSO ALLOWS HIM TO DEFER TAXES ON THE GAINS INDEFINITELY SMALL WONDER THAT STOCK OPTIONS WHICH GIVE THEIR HOLDERS THE RIGHT BUT NOT THE OBLIGATION TO BUY SHARES IN A COMPANY AT A SET PRICE FOR A GIVEN PERIOD OF TIME ARE A HOT ITEM IN EXECUTIVE COMPENSATION THESE DAYS VIRTUALLY ALL EMPLOYEE STOCK OPTIONS ARE NONTRANSFERABLE MEANING THEY CAN'T BE SOLD TO SOMEONE ELSE AND THUS AREN'T TAXED WHEN THEY'RE GRANTED WITH RARE EXCEPTIONS THE EARLIEST THEY CAN BE TAXED IS WHEN THEY'RE EXERCISED OR FINALLY USED TO BUY STOCK AND IN SOME CASES THE TAX DEFERRAL EXTENDS EVEN LONGER WHAT'S MORE WHEN AN EMPLOYEE REALIZES PROFITS FROM STOCK OPTIONS THOSE PROFITS IN CERTAIN CASES MAY QUALIFY AS CAPITAL GAINS NOT ORDINARY INCOME SO THEY WOULD BE TAXABLE AT A TOP RATE OF 28 DESPITE THE POTENTIAL BENEFITS FEW PEOPLE WILL FOLLOW MR BLUMENFELD'S EXAMPLE BY GIVING UP ALL THEIR HARDEARNED PAY FOR SUCH PAPER PRIVILEGES HOWEVER FOR ONE THING THE PROFITS ARE FAR FROM GUARANTEED SINCE A DECLINE IN THE COMPANY'S STOCK PRICE WOULD CAUSE THE OPTIONS TO DROP IN VALUE TO THE POINT WHERE THEY MAY EVEN BE WORTHLESS AND EVEN WHEN THE OPTIONS DO PAY OFF THE ACT OF EXERCISING THEM COULD RISK TRIGGERING A MINEFIELD OF NEW LEVIES UNDER THE LATEST TAX LAW LAST YEAR IT WAS VERY SIMPLE AND ACCURATE TO MAKE AN ACROSSTHEBOARD RECOMMENDATION TO EXECUTE OPTIONS SAYS JOHN MCMILLAN A MANAGING DIRECTOR IN HOUSTON WITH THE COMPENSATION CONSULTING FIRM WILLIAM M MERCER INC THIS YEAR THE INCREMENTAL GAINS IN TAX SAVINGS ARE SMALLER AND MORE DIFFICULT TO PREDICT THE OPTIONS DILEMMA ISN'T JUST FOR BIGWIGS BETWEEN 90 AND 95 OF ALL PUBLICLY TRADED COMPANIES HAVE SOME KIND OF STOCKOPTION OR STOCKGRANT PROGRAM MR MCMILLAN SAYS OF THOSE THE AVERAGE COMPANY PLAN GRANTS OPTIONS DOWN TO EMPLOYEES MAKING 60000 TO 65000 IT'S VERY VERY COMMON VERY VERY WIDESPREAD HE SAYS AND COMPANIES HAVE MORE INCENTIVE TO GRANT EMPLOYEE STOCK OPTIONS THAN EVER AS THEY RUSH TO BEAT NEW ACCOUNTING AND DISCLOSURE RULES THAT COULD QUASH THIS POPULAR PAY TACTIC IN THE YEARS AHEAD SOME FINANCIAL PLANNERS AND TAX ACCOUNTANTS SEE STOCK OPTIONS AS A GOOD THING FOR THOSE WHO CAN AFFORD IT PARTICULARLY FOR INDIVIDUALS WHO ARE BULLISH ON THEIR COMPANY'S STOCK BUT BECAUSE OF POTENTIAL COMPLICATIONS EXPERTS ADVISE CAREFUL PLANNING AND TIMING IN DECIDING TO EXERCISE OPTIONS WHAT MAY WORK FOR ONE OPTIONHOLDER MAY NOT HELP ANOTHER TAKING MORE IN OPTIONS IS A GOOD PLAN SAYS NEW YORKBASED FINANCIAL PLANNER JOEL ISAACSON EXERCISING OPTIONS IS SOMETHING TO LOOK AT VERY CAREFULLY AMONG CRUCIAL QUESTIONS TO CONSIDER DO YOU HOLD INCENTIVE OPTIONS ALSO KNOWN AS QUALIFIED OPTIONS WHICH ARE ELIGIBLE FOR LONGTERM CAPITALGAINS TREATMENT OR ARE YOUR OPTIONS NONQUALIFIED MEANING YOU WILL PAY ORDINARY INCOME TAXES ON ANY PROFITS FROM EXERCISING THESE OPTIONS NONQUALIFIED OPTIONS OFTEN GIVE HOLDERS THE RIGHT TO PURCHASE THE COMPANY'S STOCK FOR LESS THAN THE GOING MARKET PRICE AT THE TIME THE OPTIONS ARE ISSUED IS THE STOCK LIKELY TO RISE OR FALL WOULD THE EXERCISE TRIGGER ADDITIONAL TAX BURDENS SUCH AS THE ALTERNATIVE MINIMUM TAX THE 10 SURTAX ON JOINT INCOMES OVER 250000 OR THE LOSS OF ITEMIZED DEDUCTIONS IN GENERAL THE NEW TAX LAW MAKES INCENTIVE STOCK OPTIONS A LOT MORE ATTRACTIVE THAN NONQUALIFIED OPTIONS NOT ONLY ARE PROFITS ON STOCK THAT'S OBTAINED FROM EXERCISING INCENTIVE OPTIONS TAXED AS CAPITAL GAINS BUT EVEN BETTER THE TAX LIABILITY IS DELAYED UNTIL THE SHARES ARE ACTUALLY SOLD PROVIDED CERTAIN HOLDINGPERIOD REQUIREMENTS ARE MET FOR EXAMPLE LET'S SAY A GROUP OF EXECUTIVES RECEIVED GRANTS OF OPTIONS ALLOWING THEM TO BUY THEIR COMPANY'S STOCK AT 5 A SHARE IF THE STOCK RISES TO 10 THEY COULD EXERCISE THEIR OPTIONS AND REAP A 5 WINDFALL ON PAPER BUT THEY WOULDN'T PAY TAXES ON THAT WINDFALL UNTIL THE STOCK ITSELF WAS SOLD PROVIDED THEY HELD THE STOCK FOR AT LEAST TWO YEARS FROM THE TIME THE OPTIONS WERE GRANTED AND ONE YEAR FROM THE EXERCISE DATE WHEN THE STOCK WAS AT LAST SOLD ALL PROFITS THE DIFFERENCE BETWEEN THE OPTION'S 5 EXERCISE PRICE AND THE STOCK'S PRICE WHEN SOLD WOULD BE TAXED AS CAPITAL GAINS AT A TOP 28 RATE BUT BEWARE IN CERTAIN CASES THE ACT OF EXERCISING THE OPTIONS COULD IMPOSE AN IMMEDIATE TAX BURDEN UNDER THE ALTERNATIVE MINIMUM TAX BY CONTRAST PROFITS FROM NONQUALIFIED OPTIONS ARE TAXABLE AS ORDINARY INCOME AT THE TIME THE OPTIONS ARE EXERCISED FOR EXAMPLE SAY THE EXECUTIVES WERE GRANTED NONQUALIFIED OPTIONS TO BUY THE SAME STOCK AT 3 A SHARE WHETHER THEY EXERCISE THEIR OPTIONS IMMEDIATELY AT 5 OR WAIT TO EXERCISE THEM UNTIL THE STOCK RISES TO 10 THE WHOLE PROFIT WOULD BE TAXABLE AS ORDINARY INCOME AT A RATE OF UP TO 396 FOR WAGE EARNERS IN THE HIGHEST BRACKET WHILE TYPICALLY LESS DESIRABLE THAN INCENTIVE OPTIONS NONQUALIFIED OPTIONS ARE FAR MORE COMMON FOR MOST PEOPLE HOWEVER SUCH A STRATEGY PROBABLY WOULDN'T BE A SMART MOVE TAX ADVISERS SAY SEVERAL FACTORS MAY OUTWEIGH THE TAX SAVINGS INCLUDING THE COST OF BORROWING TO EXERCISE THE OPTIONS AND THE OPPORTUNITY COST OF PAYING THE TAXES EARLY WE REALLY TRY TO CONVINCE PEOPLE YOU HAVE TO LOOK AT OTHER FACTORS SAYS JIM SULLIVAN SENIOR TAX MANAGER FOR ARTHUR ANDERSEN AT THE CHICAGO HEADQUARTERS BUT IF EXECUTIVES ARE CONVINCED THE COMPANY'S STOCK IS GOING TO RISE EXERCISING NONQUALIFIED OPTIONS THIS YEAR MAY MINIMIZE TAXES OVER TIME THAT'S BECAUSE FUTURE INCREASES IN THE STOCK PRICE AFTER THE OPTIONS ARE EXERCISED WOULD BE TREATED AS CAPITAL GAINS BY CONTRAST A DELAY IN EXERCISING THESE OPTIONS WOULD MAKE THOSE FUTURE GAINS TAXABLE AS ORDINARY INCOME WHEN THERE IS A GOOD SPREAD BETWEEN THE INCOMETAX AND CAPITALGAINS TAX IT ALWAYS PAYS TO EXERCISE EARLY IF THE STOCK IS GOING TO RUN UP SAYS MR SULLIVAN EXERCISING OPTIONS TO BUY STOCK ISN'T PROFITABLE UNDER THIS OR ANY OTHER TAX SCENARIO IF THE STOCK PRICE LATER PLUMMETS ANOTHER CHOICE NOW BEING STUDIED IS THE PREVIOUSLY OUTOFFAVOR 83B ELECTION A TAXCODE PROVISION THAT ALLOWS AN EXECUTIVE TO DECLARE NONQUALIFIED OPTIONS AS TAXABLE INCOME WITHIN 30 DAYS OF RECEIVING THEM AND SET THE BASIS WITHOUT ACTUALLY EXERCISING THE OPTION THE RISK IS THAT IF THE STOCK GOES DOWN AND THE OPTION IS NEVER EXERCISED THE EXECUTIVE WOULD HAVE PAID TAXES ON INCOME NEVER RECEIVED 9311240104 931124 IN THE LAB MANICDEPRESSION RESEARCHERS SHAKE FAMILY TREES BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL BALTIMORE MD BACK IN THE 1970S SUZANNE WATCHED HER MARRIAGE UNRAVEL AS HER HUSBAND SWUNG WILDLY FROM MANIC HIGHS TO DARK DEPRESSIONS BEFORE THEIR DIVORCE HE WAS DIAGNOSED WITH MANIC DEPRESSION AND AROUND THE SAME TIME SO WAS HIS MOTHER STUNNED BY THE TWO DIAGNOSES SUZANNE WHO DOESN'T WANT TO REVEAL HER LAST NAME REMEMBERS WONDERING ANXIOUSLY ABOUT HER THREE YOUNG CHILDREN I'D LOOK AT THEM AND SAY WHO'S GETTING IT NEXT' SHE RECALLS TODAY SUZANNE A QUIET WOMAN WHO LIVES IN THE SUBURBS OF A LARGE EASTERN CITY AND MANAGES A BIG OFFICE MAY OFFER A CLUE TO ONE OF THE MOST AMBITIOUS QUESTS IN GENETICS RESEARCH TO FIND THE GENES FOR MANIC DEPRESSION THE STAKES ARE HIGH SOME 25 MILLION AMERICANS SUFFER FROM MANIC DEPRESSION AND 20 OF CASES END IN SUICIDE BUT IT IS SO SHADOWY AND STIGMATIZED THAT ONLY AN ESTIMATED 40 TO 50 OF ALL CASES ARE PROPERLY DIAGNOSED AND TREATED FOR MORE THAN A THOUSAND YEARS SCIENTISTS HAVE FELT CERTAIN THAT MANIA AND DEPRESSION RUN IN FAMILIES THE VICTORIAN POET ALFRED LORD TENNYSON REFERRED TO HIS DEPRESSION AS A TAINT OF BLOOD HE HAD FIVE BROTHERS AND TWO SISTERS WHO SUFFERED FROM MANIC DEPRESSION OR RELATED DISORDERS AND HIS FATHER GRANDFATHER AND TWO GREATGRANDFATHERS WERE SIMILARLY AFFLICTED NOW HALF A DOZEN RESEARCH TEAMS AROUND THE WORLD ARE HUNTING FOR LATTERDAY VERSIONS OF THE TENNYSONS THE TRAIL IS MUDDIER THAN MOST GENE SEARCHES BECAUSE MANIC DEPRESSION IS A HIGHLY SUBJECTIVE DIAGNOSIS FORMALLY KNOWN AS BIPOLAR DISORDER THE TERM DESCRIBES PATIENTS WHOSE MOODS ROCKET TO DANGEROUS HIGHS AND OFTEN PLUNGE TO AGONIZING DEPTHS ONE OF THE MOST INTENSIVE HUNTS IS HERE AT JOHNS HOPKINS HOSPITAL LED BY PSYCHIATRIST J RAYMOND DEPAULO THE HOPKINS GROUP HAS BEEN STALKING FAMILIES WITH MANIC DEPRESSION FOR SEVEN YEARS THIS FALL IT SHIFTED INTO HIGHER GEAR BY TEAMING UP WITH TWO OF GENETICS' BIGGEST GUNS STANFORD UNIVERSITY'S PIONEERING GENE MAPPER DAVID BOTSTEIN AND COLD SPRING HARBOR LABORATORY'S JAMES D WATSON THE CODISCOVERER OF DNA'S DOUBLEHELIX STRUCTURE THE HOPKINS TEAM IS HOPING TO FIND THE MANICDEPRESSION GENES BY LOCATING A VERY SPECIFIC KIND OF FAMILY IT WANTS AT LEAST TWO SIBLINGS WITH THE DISEASE IT ALSO WANTS ONE PARENT'S SIDE OF THE FAMILY TO BE FREE OF MANIC DEPRESSION SO IT'S CLEAR WHICH PARENT IS BEQUEATHING THE DISEASE TO CONSTRUCT THE MOST ACCURATE FAMILY TREES HOPKINS PSYCHIATRISTS INTERVIEW EVERY RELATIVE THEY CAN FLYING AROUND THE COUNTRY TO FIND A CRUCIAL UNCLE OR COUSIN THEY HAVE WAYLAID RELATIVES ON TEXAS BACK ROADS AND SOUTH DAKOTA FARMS AND IN A WASHINGTON DC BAR THEIR BIGGEST OBSTACLE FINDING A DISEASEFREE SIDE OF THE FAMILY EARLIER STUDIES HAVE FOUND THAT MANICDEPRESSIVE PATIENTS TEND TO MARRY OTHERS WITH THE DISEASE TIME AND AGAIN THE HOPKINS PSYCHIATRISTS HAVE GOTTEN MIDWAY INTO AN INTERVIEW WITH A SUPPOSEDLY HEALTHY RELATIVE ONLY TO FIND THE UNMISTAKABLE SIGNS OF UNDIAGNOSED ILLNESS YOU SEE PEOPLE WHO THINK EVERYTHING'S OK BECAUSE THEY'RE GETTING UP IN THE MORNING AND GOING TO WORK SAYS MELVIN MCINNIS A HOPKINS PSYCHIATRIST BUT THEY WAKE UP THINKING ABOUT DEATH THEY GET NO PLEASURE OUT OF LIFE NO PLEASURE OUT OF SEX THEY COME HOME AND DRINK A BIT EVERY NIGHT TO FEEL BETTER SO FAR THE HOPKINS TEAM HAS INTERVIEWED 380 SUBJECTS WITH SIGNS OF MANIC DEPRESSION OR A RELATED DISORDER DR DEPAULO SAYS MORE THAN A THIRD OF THEM WEREN'T AWARE OF THEIR DIAGNOSIS WHEN THEY WALKED INTO THE HOPKINS INTERVIEW OFTEN THE HOPKINS DOCTORS END THE INTERVIEW BY GENTLY SUGGESTING THAT THE UNSUSPECTING SUBJECT SEEK HELP IN ALL THE HOPKINS RESEARCHERS HAVE SCREENED SOME 2200 FAMILIES THEY HAVE DOCTORS AT THE HOPKINS HOSPITAL AND AT THE UNIVERSITY OF IOWA KEEPING AN EYE OUT FOR PROSPECTS TO DATE HOWEVER ONLY 32 FAMILIES HAVE FIT THE HOPKINS TEAM'S BILL DR DEPAULO WANTS 50 IN ALL AND HOPES TO HAVE THEM IN TWO TO THREE YEARS SUZANNE SAW A MENTION OF THE HOPKINS PROJECT IN THE ACTRESS PATTY DUKE'S BOOK ABOUT HER OWN MANIC DEPRESSION THOUGH SHE HERSELF IS HEALTHY SHE IMMEDIATELY THOUGHT OF HER FAMILY SO ON A RECENT MORNING IN A HOPKINS OFFICE SUZANNE ROLLED UP THE SLEEVE OF HER SWEATER GAVE A SAMPLE OF HER BLOOD AND RECOUNTED HER FAMILY'S TUMULTUOUS HISTORY THE LATEST CHAPTER UNFOLDED THIS PAST SUMMER WHEN SHE SUDDENLY BEGAN RECEIVING HYSTERICAL PHONE CALLS FROM HER DAUGHTER BETH BETH WHO IS IN HER EARLY 20S AND HAD NEVER HAD ANY PSYCHIATRIC TROUBLE WAS SKITTERING INCOHERENTLY FROM ONE THOUGHT TO ANOTHER AND THEN BURSTING INTO TEARS SHE COMPLAINED ABOUT SOUNDS HER MOTHER COULDN'T HEAR AND SAID HER COWORKERS AT A CHAIN STORE THOUGHT SHE WAS A SPY FROM CORPORATE UNABLE TO SLEEP AT NIGHT SHE RACED AROUND HER HOUSE DOING MEANINGLESS CHORES HER MOTHER RUSHED BETH TO THE HOSPITAL TERRIFIED SHE WAS SEEING THE ONSET OF SCHIZOPHRENIA BUT LIKE HER FATHER AND GRANDMOTHER BETH WAS DIAGNOSED WITH MANIC DEPRESSION THE HOPKINS PROJECT STILL FACES HUGE UNCERTAINTY ONE COMPLICATION IS THAT MOST SCIENTISTS BELIEVE MANIC DEPRESSION INVOLVES SEVERAL GENES THOUGH NOBODY KNOWS HOW MANY WHERE THEY LIE OR WHAT THEY DO THE PROJECT IS ALSO IN THE SHADOW OF SEVERAL HIGHPROFILE DISAPPOINTMENTS IN 1987 FOR EXAMPLE A RESEARCH TEAM STUDYING AMISH FAMILIES TRIUMPHANTLY ANNOUNCED LOCATING A MANICDEPRESSION GENE ON CHROMOSOME 11 THEN ONE AMISH SUBJECT WHOM THE TEAM HAD CAREFULLY EVALUATED AND PRONOUNCED HEALTHY PLUNGED INTO SERIOUS DEPRESSION ANOTHER PURPORTEDLY HEALTHY SUBJECT FLEW INTO A MAJOR EPISODE OF MANIA THE RESEARCHERS REDREW THEIR FAMILY TREE AND FOUND IT NO LONGER PROVED THE CHROMOSOME11 THEORY RESEARCH INTO THE HOPKINS FAMILIES HAS ALREADY YIELDED SOME EARLY THEORIES AT A GENETICS CONFERENCE IN OCTOBER HOPKINS RESEARCHERS MADE A STIR BY UNVEILING PERHAPS THEIR MOST STUNNING FAMILY TREE EVERY WOMAN ON THE SPRAWLING TREE WITH MANIC DEPRESSION PASSES IT TO HER CHILDREN BUT NOT ONE MAN WITH THE DISORDER PASSES IT TO HIS CHILDREN THE RESEARCHERS' PROVOCATIVE HYPOTHESIS THE DISEASE IS LINKED TO MITOCHONDRIAL DNA AN OFTENOVERLOOKED FRAGMENT HIDING OUTSIDE THE CELL'S NUCLEUS WHERE MOST GENES LIE ONLY A MOTHER'S MITOCHONDRIAL GENES ARE PASSED ON TO A CHILD THE HYPOTHESIS DOESN'T FIT EVERY HOPKINS FAMILY BUT IT MAY OFFER ONE PLACE TO START LOOKING FOR A GENE FOR NOW THE MYSTERY REMAINS TANTALIZING TO RESEARCHERS AND PATIENTS ALIKE IT'S INCURABLE AND IT'S JUST HANGING OUT THERE SIGHS BETH NOW RECOVERING BACK AT HER HOME I HOPE I CAN GIVE EVERYONE SOME INFORMATION TO HELP THEM LATER ON 9311240103 931124 WHO'S NEWS VERSAR INC VERSAR INC SPRINGFIELD VA BENJAMIN M RAWLS 52 YEARS OLD WAS ELECTED CHAIRMAN OF THIS ENVIRONMENTAL CONSULTING COMPANY SUCCEEDING MICHAEL MARKELS JR 67 WHO WAS NAMED CHAIRMAN EMERITUS OF THE BOARD MR RAWLS CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER 9311240102 931124 ORANGE & ROCKLAND TO BUY GAS PEARL RIVER NY ORANGE & ROCKLAND UTILITIES INC SAID IT AGREED TO PURCHASE AS MUCH AS 55 MILLION CUBIC FEET OF NATURAL GAS A DAY FROM AVOCA NATURAL GAS STORAGE PROJECT TERMS WEREN'T DISCLOSED ORANGE & ROCKLAND USES ABOUT 220 MILLION CUBIC FEET A DAY AT PEAK CAPACITY PARTNERS IN AVOCA GAS INCLUDE J MAKOWSKI CO A BOSTONBASED DEVELOPER OF GASFIRED POWER GENERATION PROJECTS NATURAL GAS CLEARINGHOUSE A HOUSTONBASED GAS MARKETER TEXACO GAS MARKETING INC A UNIT OF TEXACO INC AND TRILLIUM GAS STORAGE INC A UNIT OF WESTCOAST ENERGY INC 9311240101 931124 HOLIDAY NOTICE THE WALL STREET JOURNAL WON'T BE PUBLISHED TOMORROW THANKSGIVING 9311240100 931124 SMALL STOCK FOCUS BUYING STOCKS IS BACK IN STYLE FOR NOW BUT THIN VOLUME SUGGESTS IT WON'T LAST BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BUYING SMALLCOMPANY STOCKS CAME BACK IN VOGUE AFTER SIX STRAIGHT SESSIONS OF SELLING ALTHOUGH MARKETWATCHERS CAUTION THAT THE TREND MIGHT BE ONLY TEMPORARY THE UPWARD MOVE ALTHOUGH BROADBASED CAME ON THIN VOLUME WHICH LEADS SOME TO THINK IT COULD BE FLEETING ALSO OBSERVERS SAY MANY INVESTORS ARE SIMPLY EVENING OUT THEIR POSITIONS AHEAD OF THANKSGIVING ON THE NASDAQ STOCK MARKET THE COMPOSITE INDEX SURGED 869 POINTS OR 118 TO 74682 ADVANCING NASDAQ ISSUES RAN AHEAD OF DECLINERS 1730 TO 1301 ON NASDAQ NATIONAL MARKET VOLUME OF 235959900 SHARES THAT IS DOWN FROM 253136300 SHARES TRADED MONDAY TOTAL NASDAQ VOLUME HIT 279546000 SHARES YESTERDAY DOWN FROM THE 302138000 SHARES THAT CHANGED HANDS MONDAY TRADERS EXPECT VOLUME TO CONTINUE TO DETERIORATE THIS WEEK DUE TO THE HOLIDAY TRADERS SAID LOWER INTEREST RATES SPARKED MUCH OF YESTERDAY'S MOVE HIGHER THE TREASURY'S LONG BOND ZOOMED UP MORE THAN A FULL POINT DEPRESSING ITS YIELD TO ABOUT 63 HOWEVER TRADERS ADD THAT ONGOING WORRIES OVER RATES TUMBLING PRECIPITOUSLY WILL REIN IN ANY BIG ADVANCES AT LEAST FOR THE TIME BEING SMALL STOCKS HAD TO COME BACK TODAY AFTER GETTING HAMMERED SO BADLY SAID JIM WHIPPLE SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS INC I SEE THEM SEESAWING THROUGH THE END OF THE YEAR MANY PEOPLE ARE AFRAID OF SMALLCAP STOCKS BECAUSE THEY HAD BEEN SO SUCCESSFUL SANDRA SHREWSBURY WHO MANAGES THE PIPER JAFFRAY EMERGING GROWTH FUND AGREED THIS HAS BEEN JUST AN INCREDIBLE MARKET SHE SAID OVER THE LAST FEW WEEKS THERE'S BEEN SOME PROFITTAKING AFTER SOME TREMENDOUS PERFORMANCES ALTHOUGH SHE SAID HER FUND WHICH HAS ABOUT 180 MILLION IN ASSETS HAS HAD A ROUGH FOURTH QUARTER SO FAR IT HAS STILL OUTPERFORMED THE NASDAQ COMPOSITE INDEX FOR THE YEAR TO DATE BUT VOLATILITY WILL PROBABLY MARK THE PERFORMANCE OF SMALL TO MIDCAP STOCKS FOR THE REMAINDER OF THE YEAR MS SHREWSBURY SAID YESTERDAY WAS A PRETTY PAINFUL DAY AND THAT PRESENTED SOME BUYING OPPORTUNITIES SHE ADDED SHORT TERM I DON'T THINK WE'RE IN FOR A HUGE CORRECTION SINCE MOST OF THESE STOCKS HAVE ALREADY PULLED BACK QUITE A BIT VERMONT TEDDY BEAR CO ROCKETED TO 16 3/4 FROM ITS 10 OFFERING PRICE EARLIER TUESDAY THE SHELBURNE VT COMPANY SAID IT WILL USE PROCEEDS TO EXPAND ITS MARKETING EFFORTS PURCHASE NEW EQUIPMENT ACQUIRE AND BUILD NEW MANUFACTURING FACILITIES AND REPAY EXISTING DEBT AS WELL AS FOR GENERAL WORKING CAPITAL PURPOSES ONE OF THE DAY'S BIGGEST NASDAQ GAINERS WAS UNIVAX BIOLOGICS INC WHICH CLIMBED 1 1/4 OR 167 TO 8 3/4 THE ROCKVILLE MD DRUG MAKER SAID THE FOOD AND DRUG ADMINISTRATION HAS DESIGNATED WINRHO SD AN ANTIBODY TO TREAT A BLOOD DISORDER KNOWN AS IDIOPATHIC THROMBOCYTOPENIC PURPURA AS AN ORPHAN DRUG ORPHAN DRUGSTATUS GIVES THE COMPANY A SEVENYEAR EXCLUSIVITY IN MARKETING THE DRUG FOR TREATMENT OF THAT DISEASE AMONG TRANSPORTS CINCINNATIBASED COMAIR HOLDINGS INC AN AIR TRANSPORTATION HOLDING COMPANY LIFTED 1 1/4 TO 31 AFTER AN INITIATION OF COVERAGE WITH A MODERATE OUTPERFORMER RATING BY GOLDMAN SACHS & CO NEEDHAM MASSBASED COGNEX CORP FELL 2 3/4 TO 13 1/2 AFTER ADAMS HARKNESS & HILL DOWNGRADED IT TO HOLD FROM BUY THE BROKERAGE FIRM CITED CONCERN OVER THE MACHINE VISION SYSTEMS COMPANY'S GROSS MARGIN EROSION FOR NEXT YEAR AND ALSO LOWERED ITS 1994 EARNINGS ESTIMATE MERRILL CORP SURGED 1 1/2 TO 24 AFTER THE RELEASE OF IMPROVED FISCAL THIRDQUARTER EARNINGS OF 38 CENTS A SHARE UP FROM 28 CENTS A YEAR EARLIER THE ST PAUL MINN PRINTING CONCERN ALSO SAID ITS FISCAL FOURTHQUARTER NET INCOME IS LIKELY TO EXCEED ANALYSTS' EXPECTATIONS OF 26 CENTS TO 31 CENTS A SHARE 9311240099 931124 THANKSGIVING GIFT' TO FLIERS RUFFLES SOME CEO FEATHERS INTERVENTION IN AMR STRIKE BY PRESIDENT SPURS WORRIES ABOUT EXCESSIVE INTRUSION A WALL STREET JOURNAL NEWS ROUNDUP PRESIDENT CLINTON'S INTERVENTION THAT HALTED THE FIVEDAY STRIKE AT AMERICAN AIRLINES MAY HAVE PLEASED MANY HOLIDAYBOUND AIR TRAVELERS BUT IT UPSET SOME CORPORATE EXECUTIVES LOOKING FURTHER DOWN THE ROAD SEVERAL CHIEF EXECUTIVES COMPLAINED THAT THE PRESIDENT'S CAJOLING WHICH GOT AMERICAN AND ITS STRIKING FLIGHT ATTENDANTS TO ACCEPT ARBITRATION OF THEIR DIFFERENCES SO EARLY IN THE STRIKE BODES ILL FOR FUTURE LABOR NEGOTIATIONS IN GENERAL COMPANIES MAY HAVE TO FEAR GOVERNMENT INTERVENTION AND ARBITRATION IF YOU DO ANYTHING THAT TOUCHES THE PUBLIC NERVE SAID LAWRENCE HIRSCH CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF DALLASBASED CENTEX CORP A HOME BUILDER AND CONSTRUCTION COMPANY TO ME IT SETS A VERY NEGATIVE PRECEDENT STRIKES ARE A PART OF THE SYSTEM PRESIDENT CLINTON'S WILLINGNESS TO PERSONALLY INVOLVE HIMSELF THIS EARLY IN THE STRIKE IS A TROUBLING SIGN AGREED JOHN TEETS CHAIRMAN AND CHIEF EXECUTIVE OF DIAL CORP IF HIS MOTIVE WAS TO GET PEOPLE HOME FOR THE HOLIDAYS THAT'S FINE BUT IF IT WAS TO UNDERMINE THE FREEENTERPRISE SYSTEM'S ABILITY TO ALLOW UNIONS AND MANAGEMENT TO WORK OUT THEIR OWN PROBLEMS THEN I DISAGREE WITH IT MR TEETS ISN'T A STRANGER TO SUCH JAWBONING HAVING RECEIVED WHAT HE SAYS WAS A SIMILAR CALL IN 1983 WHEN BUS DRIVERS STRUCK THE COMPANY'S FORMER GREYHOUND BUS OPERATIONS THE CALL WAS FROM A MEDIATOR WHO SAID HE REPORTED DIRECTLY TO PRESIDENT REAGAN MR TEETS RECALLS THE MEDIATOR WANTED GREYHOUND TO STOP HIRING REPLACEMENT DRIVERS WHILE HE TRIED TO PERSUADE THE UNION TO ACCEPT MANAGEMENT'S CONTRACT OFFER MR TEETS AT FIRST REFUSED BECAUSE THE UNION HAD ALREADY REJECTED THE OFFER TWICE BUT HE BACKED DOWN HE SAYS AFTER THE MEDIATOR SAID I COULD ASK YOU OR I COULD ORDER YOU THE DRIVERS HAD BEEN ON STRIKE ABOUT 45 DAYS AT THAT POINT MR TEETS SAYS BUT THE MEDIATOR WAS SUCCESSFUL AND THE DRIVERS ULTIMATELY ACCEPTED THE COMPANY CONTRACT OFFER DIAL A PHOENIXBASED CONSUMER PRODUCTS AND SERVICES CONCERN HAS ABOUT 33000 EMPLOYEES OF WHOM ABOUT 60 ARE UNION MEMBERS ROBERT W MAHONEY CHAIRMAN OF DIEBOLD INC A CANTON OHIO MAKER OF AUTOMATED TELLERS AND BANKING EQUIPMENT ALSO EXPRESSED CONCERN ABOUT USING THE POWER OF THE PRESIDENCY TO INTERVENE IN A MATTER IN WHAT'S CLEARLY A BREACH OF THE COLLECTIVE BARGAINING PROCESS WAS IT A NATIONAL EMERGENCY I DON'T THINK SO MR MAHONEY ADDED I DON'T SEE WHERE THIS SITUATION WAS ANYWHERE CLOSE TO THAT OF THE NATIONWIDE RAILROADFREIGHT STRIKE SEVERAL YEARS AGO WHEN CLEARLY THE NATIONAL INTEREST WAS JEOPARDIZED AND WHITE HOUSE INTERVENTION HELPED END IT AT LEAST ONE MAJOR AIRLINE CHIEF EXECUTIVE IS APPARENTLY UPSET BY MR CLINTON'S INTERVENTION AS WELL AT A DINNER PARTY IN CHICAGO MONDAY NIGHT SHORTLY AFTER AMERICAN AND ITS FLIGHT ATTENDANTS APPROVED ARBITRATION UAL CORP'S STEPHEN WOLF TOLD OTHER GUESTS THAT HE WAS VERY UNHAPPY WITH THE PRESIDENT'S STEPPING IN ACCORDING TO ONE GUEST MR WOLF COMPLAINED THAT THE ACTION WAS UNWARRANTED AND COULD CAUSE LABOR COSTS AT UAL'S UNITED AIRLINES TO RISE UNITED AIRLINES HAS HAD CONTENTIOUS LABOR RELATIONS SINCE A BITTER PILOTS' STRIKE IN 1985 CURRENTLY THE CARRIER IS FACING A WORK SLOWDOWN FROM UNION MEMBERS ANGRY AT MANAGEMENT'S PLANS TO CUT COSTS ITS UNIONS HAVE OFFERED TO ACQUIRE 60 OF UAL BUT THE COMPANY HAS REJECTED THE PROPOSAL LAWRENCE NAGIN UNITED GENERAL COUNSEL SAID YESTERDAY THAT MR WOLF HAD NO COMMENT ON HIS REMARKS AT THE PARTY SEVERAL EXECUTIVES EITHER PUBLICLY OR PRIVATELY SAID THEY BELIEVED MR CLINTON TOOK THE UNUSUAL MOVE TO INTERVENE IN THE AMERICAN STRIKE TO HEAL WOUNDS WITH ORGANIZED LABOR OVER THE NORTH AMERICAN FREE TRADE AGREEMENT ORGANIZED LABOR VEHEMENTLY OPPOSED NAFTA IN MY ESTIMATION HE'S TRYING TO GET ON LABOR'S GOOD SIDE BECAUSE OF WHAT HE DID ON NAFTA SAID HENRY NOZKO SR PRESIDENT OF ACMAT CORP A NEW BRITAIN CONN ASBESTOSREMOVAL AND INSURANCE COMPANY HE'S NOW WHEELING AND DEALING WITH LABOR LIKE HE DID WITH CONGRESS TO GET THE NAFTA ACMAT'S CONSTRUCTION WORKERS HAVE BEEN UNIONIZED FOR 43 YEARS AND MR NOZKO SAYS WE KNOW THE TERRAIN HE'S CLINTON GETTING INTO DANGEROUS TERRITORY NOT ALL CEOS EXPRESSED DISMAY AT MR CLINTON'S JAWBONING IT WASN'T INAPPROPRIATE TO TRY TO GET BOTH SIDES TO SIT DOWN AND TRY TO COME UP WITH AN ACCOMMODATION IT WASN'T AN INAPPROPRIATE USE OF PRESIDENTIAL PREROGATIVE MAINTAINED BERNARD L SCHWARTZ CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LORAL CORP A NEW YORKBASED DEFENSEELECTRONICS AND SPACECOMMUNICATIONS CONCERN EVERY UNIONMANAGEMENT NEGOTIATION IS INDIVIDUAL AND UNIQUE AND I DON'T BELIEVE ANYTHING DONE HERE WILL AFFECT THE GENERAL CLIMATE HE ADDED OF LORAL'S 25000 EMPLOYEES FEWER THAN 15 ARE UNION MEMBERS MR SCHWARTZ SAID 'I APPLAUD BILL CLINTON' PAUL M MONTRONE PRESIDENT AND CHIEF EXECUTIVE OF FISHER SCIENTIFIC INTERNATIONAL INC A BIG MAKER OF SCIENTIFIC INSTRUMENTS IN HAMPTON NH SAID I APPLAUD BILL CLINTON FOR HELPING TO END THE STRIKE MR MONTRONE DOESN'T SEE IT AS BULLYING CORPORATIONS SOME EXECUTIVES PRIVATELY EXPRESSED SURPRISE THAT ROBERT L CRANDALL CHAIRMAN OF AMR CORP AMERICAN AIRLINES' PARENT AGREED TO ACCEPT INTERVENTION AFTER EARLIER REJECTING A PROPOSAL BY ITS FLIGHT ATTENDANTS' UNION TO SEEK FEDERAL MEDIATION BUT MR MONTRONE SAID BOB CRANDALL IS A BIG BOY AND IF HE DIDN'T SEE THE PRESIDENT'S ENCOURAGEMENT AS WORKING IN THE BEST INTERESTS OF HIS COMPANY HE WOULDN'T HAVE CAVED ORGANIZED LABOR MEANWHILE SAVORED A RARE VICTORY OR AT LEAST A LOSS AVERTED EVERYBODY IS CALLING ME TELLING ME THIS IS THE REBIRTH OF THE LABOR MOVEMENT SAID RAY ABERNATHY A WASHINGTON DC CONSULTANT WHO HELPED ADVISE THE FLIGHT ATTENDANTS AT AMERICAN AIRLINES I THINK IT WILL BACK OFF SOME RENEGADE EMPLOYERS WHO HAVE BEEN HORRENDOUS IN THEIR LABOR RELATIONS PRESIDENT CLINTON'S INTERVENTION DEFINITELY SENDS A MESSAGE THAT SOMEBODY'S WATCHING AND THAT MANAGEMENT DOESN'T HAVE THE ABILITY TO RUN ROUGHSHOD IN LABOR AGREEMENTS ANY MORE SAID KEVIN LUM PRESIDENT OF THE ASSOCIATION OF FLIGHT ATTENDANTS AT UNITED AIRLINES MR LUM SAID THE ACTION AT AMERICAN PROVIDED A SHOT IN THE ARM FOR HIS MEMBERS WHO FEEL THREATENED BY UNITED'S STATEMENTS THAT IT WOULD LOP OFF PARTS OF THE AIRLINE TO CUT COSTS 9311240098 931124 REVIEW & OUTLOOK EDITORIAL THE DESOLATE WILDERNESS HERE BEGINNETH THE CHRONICLE OF THOSE MEMORABLE CIRCUMSTANCES OF THE YEAR 1620 AS RECORDED BY NATHANIEL MORTON KEEPER OF THE RECORDS OF PLYMOUTH COLONY BASED ON THE ACCOUNT OF WILLIAM BRADFORD SOMETIME GOVERNOR THEREOF SO THEY LEFT THAT GOODLY AND PLEASANT CITY OF LEYDEN WHICH HAD BEEN THEIR RESTINGPLACE FOR ABOVE ELEVEN YEARS BUT THEY KNEW THAT THEY WERE PILGRIMS AND STRANGERS HERE BELOW AND LOOKED NOT MUCH ON THESE THINGS BUT LIFTED UP THEIR EYES TO HEAVEN THEIR DEAREST COUNTRY WHERE GOD HATH PREPARED FOR THEM A CITY HEB XI 16 AND THEREIN QUIETED THEIR SPIRITS WHEN THEY CAME TO DELFSHAVEN THEY FOUND THE SHIP AND ALL THINGS READY AND SUCH OF THEIR FRIENDS AS COULD NOT COME WITH THEM FOLLOWED AFTER THEM AND SUNDRY CAME FROM AMSTERDAM TO SEE THEM SHIPT AND TO TAKE THEIR LEAVES OF THEM ONE NIGHT WAS SPENT WITH LITTLE SLEEP WITH THE MOST BUT WITH FRIENDLY ENTERTAINMENT AND CHRISTIAN DISCOURSE AND OTHER REAL EXPRESSIONS OF TRUE CHRISTIAN LOVE THE NEXT DAY THEY WENT ON BOARD AND THEIR FRIENDS WITH THEM WHERE TRULY DOLEFUL WAS THE SIGHT OF THAT SAD AND MOURNFUL PARTING TO HEAR WHAT SIGHS AND SOBS AND PRAYERS DID SOUND AMONGST THEM WHAT TEARS DID GUSH FROM EVERY EYE AND PITHY SPEECHES PIERCED EACH OTHER'S HEART THAT SUNDRY OF THE DUTCH STRANGERS THAT STOOD ON THE KEY AS SPECTATORS COULD NOT REFRAIN FROM TEARS BUT THE TIDE WHICH STAYS FOR NO MAN CALLING THEM AWAY THAT WERE THUS LOATH TO DEPART THEIR REVEREND PASTOR FALLING DOWN ON HIS KNEES AND THEY ALL WITH HIM WITH WATERY CHEEKS COMMENDED THEM WITH THE MOST FERVENT PRAYERS UNTO THE LORD AND HIS BLESSING AND THEN WITH MUTUAL EMBRACES AND MANY TEARS THEY TOOK THEIR LEAVES ONE OF ANOTHER WHICH PROVED TO BE THE LAST LEAVE TO MANY OF THEM BEING NOW PASSED THE VAST OCEAN AND A SEA OF TROUBLES BEFORE THEM IN EXPECTATIONS THEY HAD NOW NO FRIENDS TO WELCOME THEM NO INNS TO ENTERTAIN OR REFRESH THEM NO HOUSES OR MUCH LESS TOWNS TO REPAIR UNTO TO SEEK FOR SUCCOUR AND FOR THE SEASON IT WAS WINTER AND THEY THAT KNOW THE WINTERS OF THE COUNTRY KNOW THEM TO BE SHARP AND VIOLENT SUBJECT TO CRUEL AND FIERCE STORMS DANGEROUS TO TRAVEL TO KNOWN PLACES MUCH MORE TO SEARCH UNKNOWN COASTS BESIDES WHAT COULD THEY SEE BUT A HIDEOUS AND DESOLATE WILDERNESS FULL OF WILDE BEASTS AND WILDE MEN AND WHAT MULTITUDES OF THEM THERE WERE THEY THEN KNEW NOT FOR WHICH WAY SOEVER THEY TURNED THEIR EYES SAVE UPWARD TO HEAVEN THEY COULD HAVE BUT LITTLE SOLACE OR CONTENT IN RESPECT OF ANY OUTWARD OBJECT FOR SUMMER BEING ENDED ALL THINGS STAND IN APPEARANCE WITH A WEATHERBEATEN FACE AND THE WHOLE COUNTRY FULL OF WOODS AND THICKETS REPRESENTED A WILD AND SAVAGE HEW IF THEY LOOKED BEHIND THEM THERE WAS A MIGHTY OCEAN WHICH THEY HAD PASSED AND WAS NOW AS A MAIN BAR OR GULPH TO SEPARATE THEM FROM ALL THE CIVIL PARTS OF THE WORLD THIS EDITORIAL HAS APPEARED ANNUALLY SINCE 1961 9311240097 931124 IN SOUTH AFRICA A PRIMER ON SCHOOL CHOICE BY JOHN KOPPISCH SCHOOL CHOICE CAME TO SOUTH AFRICA IN A FLASH IN AUGUST 1992 THERE WAS NO REFERENDUM LIKE THE ONE THAT FAILED IN CALIFORNIA THERE WAS NOT EVEN MUCH DEBATE UNTIL AFTER THE DECISION WAS MADE THE MOVE WAS DRIVEN BY PURE NECESSITY THE END OF APARTHEID WAS MAKING HUGE DEMANDS ON THE BUDGET AND INCREASING THE PRESSURE FOR RACIAL INTEGRATION SOUTH AFRICA'S VERSION OF SCHOOL CHOICE KNOWN AS MODEL C ADDRESSED BOTH THESE ISSUES WHILE THE AFRICAN NATIONAL CONGRESS ATTACKED ADMISSION POLICIES AND THE TEACHERS' UNIONS BALKED AT THE PARENTS' NEW CONTROL MOST PARENTS LIKED THE SYSTEM FROM THE START TODAY CRITICISM OF MODEL C HAS ALL BUT DISAPPEARED THERE ARE ABOUT 1800 MODEL C PRIMARY AND HIGH SCHOOLS AND THERE COULD BE 5000 TO 10000 IN TWO YEARS IF THE PROGRAM IS EXPANDED BEYOND THE FORMERLY ALLWHITE SCHOOLS AND OPENED TO THE LARGELY ABYSMAL BLACK SCHOOLS PRINCIPALS AND PARENTS FROM BLACK SCHOOLS ARE CLAMORING TO JOIN MODEL C SAYS KEN PAINE THE GOVERNMENT OFFICIAL WHO OVERSEES THE FORMERLY ALLWHITE SCHOOLS IN THE COUNTRY'S LARGEST PROVINCE TRANSVAAL AT THEIR BEST MODEL C SCHOOLS WORK LIKE SMALL PUBLIC COMPANIES THE PARENTS THE SHAREHOLDERS ELECT EIGHT MEMBERS OF A GOVERNING BODY THE BOARD WITH THE PRINCIPAL THE CEO SERVING AS THE NINTH MEMBER SUBCOMMITTEES HANDLE AREAS SUCH AS FINANCE BUILDINGS AND GROUNDS FUNDRAISING INSURANCE AND HIRING SOME SCHOOLS HAVE DRAWN UP MISSION STATEMENTS AND ALL SCHOOLS HAVE THE PARENTS SIGN CONTRACTS THAT OUTLINE WHAT THE SCHOOL AND THE PARENTS PROMISE TO DO AN ANNUAL MEETING IS HELD AT WHICH THE BOARD PRESENTS AUDITED FINANCIAL STATEMENTS FOR THE PAST YEAR AND A BUDGET FOR THE YEAR AHEAD THE BOARD CHAIRMAN AT RANDPARK PRIMARY BRIAN EATON GOES SO FAR AS TO SEND PARENTS A WEEKLY SUMMARY OF THE SCHOOL'S EXPENDITURES FACED WITH THE RESPONSIBILITY OF MAKING SURE THEIR CHILDREN'S SCHOOL RUNS LIKE A BUSINESS MANY PARENTS ARE VOTING FOR BOARD MEMBERS WITH SPECIFIC SKILLS NORTHCLIFF HIGH SCHOOL WHICH HAS 1100 STUDENTS AND SERVES A MIDDLECLASS SUBURB OF JOHANNESBURG COUNTS A LAWYER AN ENGINEER A SCIENTIST A BANKER A BUSINESSMAN A MARKETING MAN AT A MAJOR MULTINATIONAL AND TWO ACCOUNTANTS IN ITS GOVERNING BODY THE CHAIRMAN ERNEST LAST A SENIOR PARTNER AT ERNST & YOUNG SAYS HE SPENDS 10 TO 15 HOURS A WEEK ON SCHOOL BUSINESS TO HELP OUT PUBLISHERS HAVE TURNED OUT A VARIETY OF GUIDEBOOKS ON RUNNING MODEL C SCHOOLS TAKING MUCH OF THE POWER AWAY FROM THE BUREAUCRACY WHICH IN NORTHCLIFF'S CASE IS A FULL HOUR AWAY IN PRETORIA AND GIVING IT TO THE SCHOOL HAS IMPROVED OPERATIONS IN COUNTLESS WAYS SCHOOLS HAVE CUT THE TIME IT TAKES TO HIRE A TEACHER BY MORE THAN HALF AND THEY CAN HIRE THE TEACHER OR PRINCIPAL THEY WANT THE PARENTS MAKE THE FINAL DECISION ON CAPITAL PROJECTS SO NEW AUDITORIUMS OR COMPUTER CENTERS ARE BUILT MUCH MORE QUICKLY THIS FREEDOM COMES AT A PRICE GOVERNMENT BUDGET CUTBACKS MEAN THAT PARENTS HAVE TO PICK UP THE DIFFERENCE AT MODEL C SCHOOLS ABOUT 20 RANDPARK PRIMARY CHARGES ABOUT 200 A STUDENT WHILE NORTHCLIFF HIGH SCHOOL CHARGES ABOUT 525 WITH SCHOLARSHIPS AVAILABLE FOR PARENTS WHO CAN'T PAY PARENTS ARE NOT UNHAPPY TO PAY FOR THEIR CHILD'S EDUCATION AS LONG AS THEY KNOW THEY'RE GETTING THEIR MONEY'S WORTH MR EATON SAYS THE POWER OF PARENTS TO RUN THEIR OWN SCHOOLS AND THE NEED TO KEEP COSTS AND FEES TO A MINIMUM HAVE PRODUCED SEVERAL HEALTHY TRENDS SCHOOLS MUST TAKE EVERY STUDENT WHO LIVES IN THEIR AREA BUT IF THAT DOESN'T FILL ALL THE SEATS THEY NOW ARE ABLE TO COMPETE FOR STUDENTS FURTHER AFIELD AND THIS IS USUALLY HOW THE SCHOOLS BECOME INTEGRATED IN NEWSPAPER ADS GERMISTON HIGH SCHOOL TOUTS ITS STABLE ENVIRONMENT CONDUCIVE TO ACHIEVING EXCELLENT ACADEMIC STANDARDS AND EDENVALE HIGH SCHOOL URGES STUDENTS TO JOIN US ON THE ROAD TO A BETTER AND BRIGHTER FUTURE A BIG YELLOW SIGN IN FRONT OF HELPMEKAAR GIRLS HIGH SCHOOL IN JOHANNESBURG BOASTS OF QUALITY EDUCATION FOR GIRLS OF ALL RACES A 100 PASS RATE ON THE GOVERNMENT GRADUATION EXAM FOR THE PAST FIVE YEARS AN INCREDIBLE CHOICE OF SUBJECTS AND AN OUTSTANDING TRADITION FOR 52 YEARS THE SECOND TREND IS INCREASED PARENTAL INVOLVEMENT IN THE SCHOOLS INDEED AT NORTHCLIFF ANNUAL MEETINGS ATTRACT MORE THAN 600 PARENTS A FEW YEARS AGO SIMILAR MEETINGS DREW LESS THAN 200 MORE PARENTS ARE ASKING QUESTIONS POKING AROUND TO MAKE SURE THEIR MONEY IS BEING WELL SPENT MR LAST SAYS AND MORE PARENTAL INVOLVEMENT HAS MEANT MORE INNOVATION IN RAISING MONEY AND CUTTING COSTS SCHOOLS ARE RENTING OUT CLASSROOMS SPORTS FIELDS AND GYMS RANDPARK PRIMARY HAS SIGNED UP LOCAL MERCHANTS FOR A PROGRAM IN WHICH PARENTS PROMISE TO PATRONIZE THEIR BUSINESSES IN RETURN FOR THE SCHOOL GETTING A PERCENTAGE OF THE EXTRA REVENUES THE PARENTS AT DENDRON PRIMARY IN RURAL NORTHERN TRANSVAAL RECENTLY CATERED A POTATOFARMERS' CONVENTION AND MADE 10000 IN ONE WEEKEND ALTHOUGH MODEL C HAS BEEN A BIG SUCCESS ONLY TWO SCHOOLS HAVE DROPPED OUT IT STILL SUFFERS FROM TWO MAJOR SHORTCOMINGS ONE IS THAT THE PARENTS DON'T HAVE MUCH SAY IN THEIR CURRICULUM THE OTHER IS THAT DESPITE THE TENS OF THOUSANDS OF BLACK CHILDREN WHO NOW ATTEND MODEL C SCHOOLS THERE ARE MILLIONS MORE WHO WON'T BENEFIT UNTIL THEIR OWN SCHOOLS IN THE TOWNSHIPS BECOME MODEL C THIS COULD HAPPEN SOON THE ANC'S OPPOSITION APPEARS TO BE SOFTENING ITS MAJOR OBJECTION IS THE FEAR THAT WHITE PARENTS COULD SET ADMISSION POLICIES FOR MODEL C SCHOOLS THAT KEEP BLACKS OUT MR PAINE OF THE TRANSVAAL EDUCATION DEPARTMENT SAYS THAT WHILE SOME MODEL C SCHOOLS DON'T HAVE ANY BLACKS THEY ARE NOT ALLOWED TO EXCLUDE ANY PUPILS ON RACIAL GROUNDS QUITE A SWITCH IN POLICY FOR A DEPARTMENT THAT A FEW YEARS AGO WAS ENFORCING SEGREGATION HAS MODEL C IMPROVED THE QUALITY OF EDUCATION MR PAINE IS ONE OF MODEL C'S BIGGEST BOOSTERS DESPITE THE LOSS OF AUTHORITY AND THE 40 CUTBACK IN STAFF FOR HIS DEPARTMENT THE SCHOOLS ARE BETTER THE FACILITIES ARE BETTER MAINTAINED AND NOW THE CHILDREN ARE BEING EDUCATED TO LOOK AFTER THEIR THINGS BETTER IF JOHNNY BREAKS A WINDOW HIS POP PAYS FOR IT NOW AND THAT'S AN IMPORTANT LESSON MR KOPPISCH IS BUSINESS EDITOR OF THE JOHANNESBURGBASED FINANCIAL MAIL 9311240096 931124 FCC CLEARS RIVALS' PARAMOUNT BIDS ON EVE OF RULING BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL COMMUNICATIONS COMMISSION APPROVED RIVAL BIDS FOR PARAMOUNT COMMUNICATIONS INC YESTERDAY ON THE EVE OF A DELAWARE COURT RULING ON THE TAKEOVER BATTLE THE FCC ACTION PERMITS THE BIDDERS VIACOM INC AND QVC NETWORK INC TO BUY SHARES TENDERED TO THEM UNDER RIVAL OFFERS BUT THE SHARES MUST BE PLACED IN A VOTING TRUST UNTIL THE FCC COMPLETES THE MORE LENGTHY REVIEW REQUIRED BEFORE PARAMOUNT'S BROADCASTING LICENSE CAN BE TRANSFERRED TO A NEW OWNER SEPARATELY VIACOM SAID 127 MILLION PARAMOUNT SHARES OR 11 OF THE TOTAL OUTSTANDING HAD BEEN TENDERED TO ITS 93 BILLION 7763ASHARE TAKEOVER BID FOR PARAMOUNT AS OF THE CLOSE OF BUSINESS MONDAY THE OFFER'S ORIGINAL EXPIRATION DATE VIACOM EXTENDED ITS OFFER BY TWO DAYS UNTIL 1201 AM TOMORROW TO GIVE A DELAWARE JUDGE UNTIL TODAY TO RULE ON A CHALLENGE TO THE DEAL BY QVC WHICH IS OFFERING 106 BILLION OR 8799 A SHARE QVC WHICH HAS RECEIVED 209829 SHARESFOR ITS OFFER HAS ALSO EXTENDED ITS OFFER UNTIL 1201 AM THURSDAY DEC 2 PARAMOUNT STOCK FELL 275 A SHARE YESTERDAY TO 7625 ON VOLUME OF 27 MILLION SHARES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IN AN AFTERSHOCK TO A 2625ASHARE GAIN MONDAY IN TRADING RELATED TO THE STOCK'S REMOVAL FROM THE STANDARD & POOR'S 500 STOCK INDEX ALSO YESTERDAY PARAMOUNT SAID IT HAD AGREED WITH AMERICAN TELEPHONE & TELEGRAPH CO TO PROVIDE PILOT PROGRAMS FOR FUTURE INTERACTIVETELEVISION PROGRAMMING THE PROGRAMS WILL INITIALLY INCLUDE INTERACTIVE VERSIONS USING AT&T SOFTWARE TOOLS OF PARAMOUNT'S ENTERTAINMENT TONIGHT AND MADISON SQUARE GARDEN SPORTS DESK 9311240094 931124 LETTERS TO THE EDITOR METHODISTS AND NAFTA CHURCH TOOK NO STAND IN YOUR NOV 9 EDITORIAL PERFORMANCE ARTIST YOU OBSERVED THAT ONE OF THE GROUPS THAT WAS NOTABLE ALONG WITH MESSRS PEROT AND BUCHANAN FOR THEIR ANTINAFTA EFFORTS WAS THE UNITED METHODIST CHURCH THIS IS INCORRECT AS THE GENERAL CONFERENCE OF THE UNITED METHODIST CHURCH HAS ADOPTED NO OFFICIAL RESOLUTION RELATIVE TO NAFTA WHILE AN AGENCY OF THE CHURCH MAY HAVE TAKEN AN ANTINAFTA POSITION THAT IS CLEARLY NOT THE POSITION OF THE UNITED METHODIST CHURCH INDEED THE BOOK OF DISCIPLINE WHICH GOVERNS THE OPERATION OF THE CHURCH SPECIFICALLY PROVIDES IN PARAGRAPH 610 THAT ONLY THE GENERAL CONFERENCE OF THE CHURCH WHICH MEETS EVERY FOUR YEARS HAS THE AUTHORITY TO SPEAK OFFICIALLY FOR THE UNITED METHODIST CHURCH THE ONLY ENTITY THAT CAN SPEAK FOR THE UNITED METHODIST CHURCH IS THE GENERAL CONFERENCE WHICH MEETS EVERY FOUR YEARS THE LAST MEETING BEING IN 1992 AS A DELEGATE TO THAT CONFERENCE I DO NOT RECALL THAT NAFTA WAS DISCUSSED 9311240092 931109 REVIEW & OUTLOOK EDITORIAL PERFORMANCE ARTIST ROSS PEROT AMERICA'S LEADING PERFORMANCE ARTIST WILL BE ON TELEVISION TONIGHT ALSO APPEARING WITH MR PEROT WILL BE LARRY KING AND THE VICE PRESIDENT OF THE UNITED STATES FOR MR PEROT TONIGHT'S APPEARANCE IS A KIND OF HOMECOMING IT WAS MR KING THE HOST OF LARRY KING LIVE WHO STARTED MR PEROT ON HIS REMARKABLE CAREER AS A POLITICAL PERFORMANCE ARTIST IN 1992 ON THAT PROGRAM MR PEROT THE HEAD OF A DATA PROCESSING COMPANY SAID THAT HE WOULD BE WILLING TO BECOME PRESIDENT OF THE UNITED STATES HE WAS AN INSTANT HIT IN THE MONTHS THAT ENSUED MR PEROT QUALIFIED HIS NAME ON THE PRESIDENTIAL BALLOT IN 24 STATES FOR CAMPAIGN MANAGERS HE HIRED BOTH A DEMOCRAT AND A REPUBLICAN NO ONE SEEMED TO MIND HE PROMISED TO REBUILD AMERICA AND CREATE A BUDGET SURPLUS OF 8 BILLION BY 1998 BY RAISING TAXES 300 BILLION AND CUTTING SPENDING BY 308 BILLION HE COINED A PHRASE IT'S SIMPLE HE TOURED THE COUNTRY TO GREAT ACCLAIM AND ESTABLISHED A SERIES OF FAN CLUBS CALLED UNITED WE STAND AND DESCRIBED BY MR PEROT AS THE VOLUNTEERS THEN ON JULY 15 JUST HOURS BEFORE BILL CLINTON WAS TO BE NOMINATED AS A CANDIDATE FOR THE PRESIDENCY BY THE DEMOCRATIC PARTY MR PEROT ANNOUNCED THAT HE'D DECIDED TO QUIT BECAUSE I CAN'T WIN MOST CRITICS IMMEDIATELY RECOGNIZED THIS AS THE MOST ASTONISHING PERFORMANCE BY AN AMERICAN IN A CONTINUING POLITICAL DRAMA BUT IT WASN'T OVER ON SEPTEMBER 28 MR PEROT SHOWED UP AGAIN ON THE LARRY KING SHOW TO ANNOUNCE THAT HE WOULD HAVE SOMETHING IMPORTANT TO SAY IN A FEW DAYS ON OCTOBER 1 HE ANNOUNCED THAT HE WAS RUNNING AGAIN FOR PRESIDENT IN THE WEEKS THAT FOLLOWED MR PEROT APPEARED ONSTAGE WITH THE TWO MEN WHO WERE RUNNING FOR THE PRESIDENCY OF THE UNITED STATES MR PEROT ALSO BROKE NEW GROUND WITH A SERIES OF INFOMERCIALS THESE ONEMAN SHOWS PARTLY INFLUENCED BY THE WORKS OF FOLKLORIST GARRISON KEILLOR AND THE FAMED MONOSURREALIST SPALDING GRAY SWIMMING TO CAMBODIA GENERALLY FEATURED MR PEROT AND A SERIES OF FLIP CHARTS DISCUSSING SUCH SUBJECTS AS THE ARKANSAS CHICKEN INDUSTRY AND THE STATE'S GOVERNOR BY THE TIME OF THE ELECTION 19 OF US VOTERS DECIDED THEY WANTED MR PEROT TO BE PRESIDENT AFTER THE ELECTION MANY PEOPLE WONDERED WHAT MR PEROT WOULD DO NEXT FEW WERE SURPRISED WHEN MR PEROT ANNOUNCED THAT HE WOULD TRY TO PERSONALLY DESTROY THE NORTH AMERICAN FREE TRADE AGREEMENT THIS TREATY HAD BEEN SIGNED BY THE ELECTED LEADERS OF THREE COUNTRIES TO DATE THIS EFFORT HAS PRODUCED TWO MAJOR WORKS A GREAT SUCKING SOUND AND A FACTOID CALLED SAVE YOUR JOB SAVE OUR COUNTRY MR PEROT IS EXPECTED TO RECITE NUMBERS FROM BOTH THESE WORKS DURING TONIGHT'S APPEARANCE WHILE ROSS PEROT IS UNQUESTIONABLY THE COUNTRY'S LEADING FIGURE IN THIS GENRE HIS SUCCESS HAS ATTRACTED OTHERS TO A STYLE OF POLITICAL THEATER THAT HAS COME TO BE KNOWN AS THE STOP NAFTA MOVEMENT UNCHARITABLY DUBBED BY ITS CRITICS AS S 'N' M BEHIND MR PEROT THE MOVEMENT'S LEADING FIGURE IS UNDOUBTEDLY PAT BUCHANAN IN HIS MOST RECENT ATTEMPT TO ATTRACT POPULAR SUPPORT FOR THE MOVEMENT MR BUCHANAN HAS CITED THE WORK OF ECONOMIST RAVI BATRA WHO IN 1987 PROPHESIED THE DEATH OF CAPITALISM IN A RECENT COLUMN AGAINST NAFTA MR BUCHANAN WROTE THAT UBER ALLES CONSERVATIVES WERE VIOLATING THE SPIRIT OF WILHELM ROPKE BESIDES MESSRS PEROT AND BUCHANAN ALSO NOTABLE FOR THEIR EFFORTS WITH AN ANTINAFTA THEME ARE RALPH NADER'S PUBLIC CITIZEN THE SIERRA CLUB FRIENDS OF THE EARTH EARTH ISLAND INSTITUTE THE HUMANE SOCIETY GREENPEACE PUBLIC INTEREST RESEARCH GROUP PIRG THE UNITED METHODIST CHURCH THE RAINFOREST ACTION NETWORK SOUTHWEST NETWORK ON ENVIRONMENTAL RACISM THE PESTICIDE ACTION NETWORK COMMUNITY NUTRITION INSTITUTE PAUL WEYRICH SOCIETY FOR ANIMAL PROTECTION LEGISLATION THE DORIS DAY ANIMAL LEAGUE AND CITIZENS CLEARINGHOUSE FOR HAZARDOUS WASTE LABOR UNIONS HAVE ALSO CONTRIBUTED GREATLY TO THE S 'N' M MOVEMENT PRIMARILY BY SCARING INNOCENT CONGRESSMEN WITH THE THREAT OF A PRIMARY ELECTION CHALLENGE NEXT YEAR IF THEY VOTE TO REPEAL THE IDEA THAT ECONOMIC ACTIVITY OCCURS ACROSS BORDERS ALL THESE GROUPS WILL BRING THEIR ACTS TO WASHINGTON NOVEMBER 17 WHEN CONGRESS WILL ACTUALLY VOTE ON NAFTA WHOSE PURPOSE IS TO EXPAND AND INTEGRATE THE ECONOMIES OF THE UNITED STATES CANADA AND MEXICO THAT THEN WOULD BE FOLLOWED BY FURTHER LIBERALIZATION OF THE ECONOMIES OF EUROPE THE REST OF LATIN AMERICA AND ASIA BUT ALL THAT CAN WAIT WHILE THE WHOLE COUNTRY STOPS TO WATCH ROSS PEROT ON LARRY KING VICE PRESIDENT AL GORE HAS AMIABLY AGREED TO SHOW UP AND SERVE AS MR PEROT'S JAWING PARTNER BUT LIKE THE RECURRING CHAMPIONSHIP FOR THE WORLD WRESTLING FEDERATION WHAT MATTERS MOST HERE IS THE PERFORMANCE AT THIS MR PEROT HAS NO PEER BRING POPCORN ENJOY SEE RELATED LETTERS LETTERS TO THE EDITOR METHODISTS AND NAFTA CHURCH TOOK NO STAND WSJ NOV 24 1993 9311090068 YY93 MM11 9311240091 931124 INSIDE TRACK HUMANA HEAD IS SNAPPING UP FIRM'S SHARES BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL HUMANA INC'S CHAIRMAN DAVID A JONES HAS GONE ON A BUYING BINGE SNAPPING UP WHEELBARROWSIZE LOADS OF COMPANY STOCK SO FAR THE EFFORT APPEARS TO BE PAYING OFF HANDSOMELY THE HEAD OF THE BIG MANAGEDHEALTHCARE PROVIDER HAS SPENT A WHOPPING 53 MILLION THIS YEAR IN BUYING NEARLY SIX MILLION SHARES OF THE LOUISVILLE KY COMPANY WITH 443000 SHARES OF THAT TOTAL PICKED UP LATE LAST MONTH AT 1363 A PIECE RECENT FEDERAL FILINGS SHOW WHEN HE STARTED BUYING HUMANA SHARES IN THE OPEN MARKET IN MARCH THEY FETCHED 750 EACH OR LESS THAN HALF THEIR CURRENT VALUE YESTERDAY THE STOCK CLOSED DOWN 125 CENTS AT 15375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE STOCK HIT A 52WEEK HIGH OF 17 ON NOV 17 FOLLOWING AN UPGRADE THAT DAY TO A BUY FROM NEUTRAL BY LEHMAN BROTHERS MR JONES THE COMPANY'S LARGEST INDIVIDUAL SHAREHOLDER AND ITS FOUNDER SAYS HE HAS BEEN WILLING TO BUY BLOCKS OF HUMANA SHARES AT SUCCESSIVELY HIGHER PRICES AND TO NEARLY TRIPLE HIS STAKE TO AROUND 10 MILLION SHARES OR 63 OF THE COMPANY BECAUSE HE THINKS THE STOCK CONSTITUTES GOOD VALUE HE BELIEVES AMONG OTHER FACTORS THAT THE CLINTON HEALTHCARE REFORMS WILL PROVE A BOON TO BUSINESS I'M BULLISH BECAUSE WHAT THE COUNTRY NEEDS IS HIGHQUALITY AFFORDABLE HEALTHCARE COVERAGE AND THAT'S THE BUSINESS WE'RE IN HE SAYS HE'S CONFIDENT THE FEDERAL HEALTHCARE CHANGES DEPENDING ON HOW THEY ARE ULTIMATELY ENACTED BY CONGRESS WILL VASTLY EXPAND THE NUMBER OF POTENTIAL CLIENTS FOR COMPETITIVE LOWCOST PROVIDERS OF HEALTHMAINTENANCEORGANIZATION SERVICES BUT HE CAUTIONS NOBODY CAN PREDICT HOW CONGRESS WILL FINESSE THE ISSUE WHILE HE SAYS HE CAN'T BE SURE ABOUT WHAT IMPACT HIS OWN PURCHASES OF COMPANY STOCK HAVE HAD ON THE SHARE'S RECENT CLIMB MR JONES ACKNOWLEDGES THAT A RISING STOCK PRICE MAY COME IN HANDY FOR AN EXPANDING COMPANY LIKE HIS OWN PARTICULARLY IN AN INDUSTRY THAT APPEARS BENT ON CONSOLIDATION IN THE FUTURE A HIGHER STOCK PRICE COULD BE USED AS A CURRENCY HE SAYS WE HAVE NO PRESENT PLANS TO USE IT AS SUCH AND WE'RE NOT IN ANY DISCUSSIONS WITH ANYBODY ABOUT A TAKEOVER OR MERGER HE ADDS NOTING THAT THE COMPANY'S RECENTLY REPORTED 50 MILLION ACQUISITION OF GROUP HEALTH ASSOCIATION A WASHINGTON DC HMO IS A CASH DEAL FUTURE EXPANSION WILL BE FOCUSED AROUND THE NINE METROPOLITAN AREAS SPREAD THROUGHOUT THE SOUTH AND MIDWEST WHERE THE COMPANY IS CURRENTLY FOCUSING ITS EFFORTS HE SAYS PHIL SMYTH AN ANALYST WITH BIRINYI ASSOCIATES IN GREENWICH CONN SAYS THAT IF ALL MR JONES'S INSIDER STOCK PURCHASES THIS YEAR HAD BEEN MADE AT ONCE IT WOULD HAVE HAD THE EFFECT OF LIFTING HUMANA'S STOCK ABOUT 5 FOR A 15 STOCK THAT WOULD BE A PRETTY SUBSTANTIAL MOVE HE SAYS IF HE'S BEEN PARCELING IT OUT OVER A PERIOD OF TIME THEN THE IMPACT WOULD BE FAR LESS IN FACT MR JONES HAS BOUGHT THE STOCK IN THREE DISTINCT BLOCKS BETWEEN MARCH 12 AND APRIL 19 HE BOUGHT ROUGHLY 4520000 SHARES NEARLY DOUBLING HIS HOLDING AT THE TIME AT AN AVERAGE COST OF 775 A SHARE ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS FOLLOWING THIS FIRST AND LARGEST BLOCK PURCHASE HE THEN STEPPED UP TO THE PLATE AND BOUGHT ANOTHER TRANCHE THIS TIME ONE MILLION SHARES AT AN AVERAGE PRICE OF 12 A SHARE FROM JULY 23 THROUGH JULY 30 THE DATA INDICATE HIS MOST RECENT PURCHASE OF 443000 SHARES ON OCT 26 AND 27 FOLLOWED HIS EXERCISING OF OPTIONS TO ACQUIRE 214999 ADDITIONAL SHARES ON OCT 25 AT PRICES RANGING FROM 508 TO 1101 A SHARE SEC FILINGS SHOW IF THOSE OPTIONS ARE INCLUDED IN THIS YEAR'S TOTAL MR JONES' BUYING SPREE WOULD TOTAL JUST UNDER 55 MILLION THE STOCKHUNGRY INSIDER HAS BEEN HUMANA'S CHIEF EXECUTIVE OFFICER SINCE 1961 ANALYSTS WHO TRACK HUMANA ONE OF THE NATION'S BIGGEST HMOS WITH 1650000 MEMBERS SEE THE COMPANY AS WELLPOSITIONED FOR GROWTH NEXT YEAR BUT EMPHASIZE THAT THE GROUP MUST PROVE ITSELF AMID INTENSIFYING COMPETITION ACCORDING TO BEN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS INVESTMENT RESEARCH IN NEW YORK ANALYSTS HAVE RECENTLY UPGRADED THEIR FIVEYEAR ANNUAL GROWTHRATE PROJECTIONS TO 19 FROM 17 FOR THE COMPANY KATHLEEN MINER AN ANALYST WITH COWEN & CO IN SAN FRANCISCO WHO HAS RATED HUMANA A STRONG BUY SINCE SEPTEMBER NOTES THAT THE OVERALL ENVIRONMENT FOR HUMANA AND OTHER COSTCONSCIOUS HEALTHCARE PROVIDERS REMAINS FAVORABLE MS MINER'S SETTING A SIXMONTH PRICE TARGET OF 18 FOR THE STOCK WHICH IS CURRENTLY TRADING A MULTIPLE OF 31 TIMES TRAILING FOURQUARTERS' EARNINGS BUT SHE WARNS THERE ARE CERTAINLY RISKS AHEAD THERE'S THE POSSIBILITY ALTHOUGH REMOTE OF REFORMMOTIVATED PRICE CONTROLS SHE SAYS MORE IMMEDIATELY SHE ADDS THERE'S AN INCREASINGLY COMPETITIVE ENVIRONMENT MEDICAL INFLATION IS SLOWING RATES OF PREMIUM INCREASES ARE MODERATING AND MEDICARE'S REIMBURSEMENTS TO HMOS WILL BE MORE MODEST ALL THESE FACTORS WILL PUT SOME HURDLES UP FOR PRETAX PROFIT MARGINS SHE SAYS THUS FAR THIS YEAR SUCH MARGINS HAVE HELD UP WELL IN THE FIRST NINE MONTHS PRETAX MARGINS WERE UP 4 COMPARED WITH BREAKEVEN LEVELS IN THE YEAREARLIER PERIOD THE COWEN & CO ANALYST NOTES THAT THE COMPANY WHICH BESTED THIRDQUARTER EARNINGS ESTIMATES OF 12 CENTS A SHARE BY THREE CENTS CAN IMPROVE PROFITABILITY AND RAISE ITS SHARE PRICE AS IT BECOMES A FULLY FOCUSED MANAGEDCARE PROVIDER SHE WAS REFERRING TO THE COMPANY'S MOVE IN MARCH TO SPIN OFF ITS ACUTECARE HOSPITAL UNIT FORMERLY KNOWN AS GALEN HEALTHCARE GALEN SUBSEQUENTLY MERGED WITH COLUMBIA HEALTHCARE ON SEPT 1 THIS IS AN HMO THAT CAN GROW IN BOTH VOLUME MEMBERSHIP AND ON THE PROFITABILITY SIDE SHE SAYS SHE EXPECTS EARNINGS TO CLIMB TO 53 CENTS A SHARE FOR 1993 FROM SEVEN CENTS A SHARE IN 1992 CONSENSUS ESTIMATES FOR 1994 ARE FOR 71 CENTS A SHARE ACCORDING TO ZACKS WE BELIEVE THAT ENROLLMENT WILL BE POISED TO GROW PERHAPS AT 7 TO 9 NEXT YEAR AFTER A FLAT YEAR IN 1993 AS IT FOCUSES ON PENETRATING EXISTING MARKETS SHE SAYS THIS IS A NEW STANDALONE HUMANA AND IT HAS TO BUILD THAT REPUTATION LEHMAN BROTHERS' ED KROLL SAYS HE RECENTLY UPGRADED THE STOCK BECAUSE HE SEES THE COMPANY EXPANDING ITS ENROLLMENT AND BECAUSE IT HAS BEEN DEMONSTRATING ITS ABILITY TO REIN IN MEDICAL COSTS WITHIN ITS HMOS HIS PRICE TARGET THE LOW 20S FOR THE NEXT 12 MONTHS OUT 9311240090 931124 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 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 335 60 TO 179 DAYS 337 180 TO 239 DAYS 345 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 344 60 DAYS 342 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 271 TWO MONTHS 274 THREE MONTHS 288 SIX MONTHS 306 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 343 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 329 60 DAYS 325 90 DAYS 325 120 DAYS 326 150 DAYS 327 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/2 THREE MONTHS 3 9/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 617 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 715 60 DAYS 722 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 715 60 DAYS 725 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311240089 931124 IRS COLOR SCHEME IS AIMED AT CHEATS ON DIESELFUEL TAX NONCOMPLIANCE BRINGS ABOUT THE AGENCY'S USE OF DYES IN A CRACKDOWN NEXT YEAR BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BEGINNING NEXT YEAR WHEN TRUCKERS FILL UP WITH DIESEL FUEL THE INTERNAL REVENUE SERVICE HAD BETTER NOT BE SEEING REDOR BLUE IN AN EFFORT TO CRACK DOWN ON RAMPANT TAX NONCOMPLIANCE IN THE DIESELFUEL INDUSTRY RED AND BLUE DYES WILL BE REQUIRED TO DIFFERENTIATE TAXABLE FROM NONTAXABLE FUEL THE TREASURY SAID THE CHANGE WHICH WILL HELP IRS INSPECTORS DETERMINE AT A GLANCE WHICH FUEL IS TAXABLE IS EXPECTED TO BRING AN ADDITIONAL 1 BILLION IN REVENUES INTO THE TREASURY'S COFFERS OVER THE NEXT FIVE YEARS ANOTHER PART OF THE CHANGED POLICY WILL BE A SHIFT IN RESPONSIBILITY FOR PAYING FEDERAL TAXES ON DIESEL FROM THE WHOLESALER TO THE POSITION HOLDER OR OWNER OF THE FUEL BEGINNING JAN 1 FUEL ON WHICH A SALES TAX ISN'T REQUIRED THAT USED FOR HEATING FARMING OR BY STATE AND LOCAL GOVERNMENTS WILL BE DYED RED IF IT IS LOW IN SULFUR OR BLUE IF IT IS HIGH IN SULFUR FUEL FOR OTHER TAXABLE PURPOSES WILL BE CLEAR THE IRS HAS HAD A BIG PROBLEM ENFORCING THE 244CENTAGALLON TAX ON THE DIESEL INDUSTRY WHOLESALERS HAVE BEEN ACCUSED OF EVADING TAXES BY CLAIMING FOR INSTANCE THAT FUEL THEY PLAN TO SELL TO TRUCKERS WHICH IS TAXABLE IS REALLY INTENDED TO HEAT HOMES MAKING IT NONTAXABLE BESIDES EVADING THE TAX WHOLESALERS CHARGE THEIR TRUCKER CUSTOMERS AS IF THE FUEL THEY RECEIVE ACTUALLY HAD BEEN TAXED BEEFING UP PROFITS TREASURY OFFICIALS SAID THE DYEING TECHNIQUE WILL HELP REMEDY THAT PROBLEM THE USE OF DYE TO DISTINGUISH BETWEEN FUELS ISN'T NEW CANADA DENMARK FRANCE ITALY AND THE UNITED KINGDOM ALREADY USE THIS PRACTICE THE AMERICAN TRUCKING ASSOCIATIONS APPLAUDED THE CHANGE WHEN WE PAY FOR FUEL WE WANT TO KNOW THAT THE PART WE PAY FOR TAXES IS ACTUALLY GOING TO THE FEDERAL GOVERNMENT AND NOT INTO THE HANDS OF A CRIMINAL SAID KENNETH SIMONSON CHIEF ECONOMIST OF THE TRUCKING GROUP BUT HE ADDED THAT THE SHORT NOTICE GIVEN BEFORE THE DYEING REQUIREMENT TAKES EFFECT MAY CAUSE PROBLEMS THERE MAY BE SUPPLY DISRUPTIONS AND PRICE SPIKES IN THE SHORT TERM HE WARNED SOME DIESEL OWNERS ALSO COMPLAIN OF THE COST OF THE DYEING EQUIPMENT AND DYE AND IF THERE IS A COLD SNAP AND LOTS OF HOMEHEATING FUEL IS NEEDED WHOLESALERS MAY NEED TO DIP INTO THEIR CLEAR FUEL TO SUPPLY CUSTOMERS THAT WOULDN'T BE A PROBLEM FOR FUEL OWNERS BECAUSE THEY CAN GET A TAX REFUND IF FUEL ON WHICH THEY WERE TAXED ENDS UP IN A NONTAXABLE USE NOR WOULD IT BE A PROBLEM FOR USERS OF NONTAXABLE FUEL WHO COULD BUY CLEAR DIESEL BUT IT COULD BE A PROBLEM FOR USERS OF TAXABLE FUEL SUCH AS TRUCKERS IF DIMINISHED SUPPLIES OF CLEAR FUEL FORCE THEM TO BUY RED OR BLUE FUEL THEY WOULD HAVE TO PAY A 10AGALLON PENALTY FOR USING THE DYED FUEL 9311240087 931124 BALDRIGE AWARDS TO ADD SCHOOLS AND HOSPITALS BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL BUSINESS'S MOST COVETED AWARD WON'T BE JUST FOR BUSINESS MUCH LONGER THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD WHICH THE COMMERCE DEPARTMENT GIVES OUT ANNUALLY TO A HANDFUL OF BUSINESSES THAT DEMONSTRATE THEMSELVES TO BE OF WORLDCLASS QUALITY WILL BE OPENED TO HEALTHCARE AND EDUCATIONAL INSTITUTIONS AWARD OFFICIALS SAY ELEMENTARY AND SECONDARY SCHOOLS COLLEGES AND UNIVERSITIES HOSPITALS MANAGEDCARE NETWORKS AND POSSIBLY EVEN GROUP MEDICAL PRACTICES ARE EXPECTED TO BE CONSIDERED BEGINNING IN 1995 OR 1996 THE OFFICIALS SAY THE BALDRIGE HAS BEEN LIMITED TO COMPANIES SINCE ITS INCEPTION SIX YEARS AGO THE CLIMATE FOR EXPANSION SEEMS TO BE RIGHT SAYS CURT W REIMANN WHO DIRECTS THE BALDRIGE COMPETITION AT COMMERCE'S NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY MANY OF THE GROWING NUMBER OF BALDRIGELIKE STATE AND LOCAL QUALITY AWARDS ALREADY ALLOW APPLICATIONS IN HEALTH CARE AND EDUCATION BUT NO NATIONWIDE RECOGNITION ON THE SCALE OF BALDRIGE EXISTS IN EITHER FIELD BUT CREATING SUCH AWARDS PROMISES TO BE CONTROVERSIAL ONE REASON QUALITY MEASURES IN HEALTH CARE AND EDUCATION AREN'T YET AS WELLDEFINED AS THEY ARE IN BUSINESS OUR GOALS AREN'T TO SELL BIG MACS OR IMPROVE MARKET SHARE BUT TO DEAL WITH LIFE AND DEATH SAYS JUDY ROBINETT VICE PRESIDENT QUALITY IMPROVEMENT AT MAGIC VALLEY REGIONAL MEDICAL CENTER TWIN FALLS IDAHO HOW DO YOU QUANTIFY THAT EXPERTS ALSO QUESTION WHETHER AN AWARD CREATES THE RIGHT INCENTIVE FOR CHANGE I HOPE HOSPITALS WON'T FOCUS ON WINNING THE AWARD AND IGNORE THE TRUE ISSUES OF EFFICIENCY AND ACCOUNTABILITY SAYS DAVID B NASH DIRECTOR OF HEALTH POLICY AND CLINICAL OUTCOMES AT THOMAS JEFFERSON UNIVERSITY HOSPITAL IN PHILADELPHIA ADDS TED MARCHESE VICE PRESIDENT OF THE AMERICAN ASSOCIATION FOR HIGHER EDUCATION WASHINGTON DC WHICH HAS BEEN PROMOTING QUALITY AMONG COLLEGES AND UNIVERSITIES MANY INSTITUTIONS WILL WANT THE RECOGNITION BUT A LOT MAY NOT LIKE THE IDEA OF QUALITY BECOMING A CONTEST DR REIMANN SAYS THE NEW AWARDS ARE DESIGNED TO ENCOURAGE BETTER QUALITY IN HEALTH CARE AND EDUCATION THOUGH MANY HAVE CRITICIZED THE BALDRIGE IT IS CREDITED WITH GENERATING WIDESPREAD CORPORATE INTEREST IN PRACTICES FROM WASTE REDUCTION TO TEAMWORK KNOWN AS TOTAL QUALITY MANAGEMENT FEWER THAN 500 COMPANIES HAVE APPLIED FOR THE AWARD AND JUST 19 HAVE WON BUT THOUSANDS ASPIRE TO THE BALDRIGE AND HAVE IMPLEMENTED THE CONCEPTS IT REWARDS EAGER TO BUILD WIDE SUPPORT FOR THE NEW CATEGORIES BALDRIGE OFFICIALS HAVE BEEN DISCUSSING THE IDEA WITH TRADE ASSOCIATIONS AND OTHERS REPRESENTING HEALTHCARE AND EDUCATIONAL INSTITUTIONS AMONG THEM THE AMERICAN MEDICAL ASSOCIATION THE JOINT COMMISSION ON ACCREDITATION OF HEALTHCARE ORGANIZATIONS THE PRIMARY ACCREDITING BODY FOR HOSPITALS THE NATIONAL EDUCATION ASSOCIATION AND THE AMERICAN ASSOCIATION OF SCHOOL ADMINISTRATORS OFFICIALS ARE ALSO SOLICITING HELP IN DRAFTING CRITERIA FOR THE AWARDS SELECTED GROUPS OF HOSPITALS AND SCHOOLS WILL SOON REVIEW THE EXISTING BALDRIGE GUIDELINES IN SOME CASES DRAFTING ENTIRE APPLICATIONS TO GAUGE WHAT MIGHT OR MIGHT NOT WORK FOR THE NEW AWARDS THE CURRENT CRITERIA REQUIRE APPLICANTS TO PROVIDE INFORMATION ON DOZENS OF ISSUES FROM STRATEGIC PLANNING AND EMPLOYEE INVOLVEMENT TO SUPPLIER QUALITY AND CUSTOMER SATISFACTION AWARD OFFICIALS ULTIMATELY MUST SETTLE DOZENS OF QUESTIONS AMONG THEM SHOULD A SCHOOL WIN BASED ON STUDENT GRADES OR THE EFFICIENCY OF ITS ADMINISTRATIVE OPERATION HOW CAN GRADES BE COMPARED ACROSS INSTITUTIONS CAN AN INNERCITY HOSPITAL WITH A HIGH MORTALITY RATE COMPETE FOR THE AWARD AGAINST A RURAL HEALTHMAINTENANCE ORGANIZATION WITH A LOW ONE TO MAKE SOME COMPARISONS EASIER AWARD OFFICIALS SAY THEY EXPECT TO CREATE SEVERAL AWARD SUBCATEGORIES EDUCATION MIGHT HAVE ONE FOR ELEMENTARY AND SECONDARY SCHOOLS AND ANOTHER FOR COLLEGES AND UNIVERSITIES HEALTH CARE MIGHT HAVE SEVERAL SUBCATEGORIES POSSIBLY BASED ON THE SIZE OF INSTITUTIONS BALDRIGE NOW HAS THREE CORPORATE CATEGORIES MANUFACTURING SERVICE AND SMALL BUSINESS AWARDS AREN'T NECESSARILY GIVEN IN EVERY CATEGORY EACH YEAR THOUGH A DECISION HASN'T BEEN MADE DR REIMANN SAID THE DEPARTMENT IS CONSIDERING A PILOT CONTEST IN 1995 WITHOUT NAMING WINNERS AND A FULL CONTEST THE FOLLOWING YEAR AWARD OFFICIALS SAY THEY PLAN TO RECRUIT TWO NEW PANELS OF EXPERTS TO REVIEW AND JUDGE APPLICANTS RATHER THAN USE THE CURRENT BUSINESSORIENTED GROUP OF EXAMINERS THE OFFICIALS MUST ALSO RAISE MONEY WHEN THE BALDRIGE AWARDS STARTED COMPANIES CREATED AN ENDOWMENT NOW EXCEEDING 10 MILLION TO COVER COSTS WITHOUT USING SIGNIFICANT PUBLIC FUNDS BUSINESS APPLICANTS ALSO PAY FEES WHICH MIGHT BE A PROBLEM WITH HOSPITALS AND SCHOOLS DR REIMANN SAYS COMMERCE SECRETARY RON BROWN HASN'T FORMALLY APPROVED THE EXPANSION YET BUT A SPOKESWOMAN SAYS HE SUPPORTS IT AND WILL SIGN OFF WHEN AWARD OFFICIALS COMPLETE THEIR DELIBERATIONS NEXT YEAR 9311240086 931124 CORRECTIONS & AMPLIFICATIONS KIII COMMUNICATIONS CORP ACQUIRED NELSON PUBLICATIONS WHICH SELLS FINANCIAL MARKETING DATABASE SOFTWARE AND PUBLISHES DIRECTORIES AND PERIODICALS FOR INVESTMENT PROFESSIONALS THE ACQUIRING COMPANY WAS INCORRECTLY IDENTIFIED AS COMMUNICATIONS CORP IN AN ITEM IN YESTERDAY'S BUSINESS BRIEFS FIDELITY NATIONAL FINANCIAL INC ISN'T A UNIT OF UNIHEALTH AMERICA AS WAS STATED IN YESTERDAY'S RECENT SEC FILINGS COLUMN 9311240085 931124 TUESDAY'S MARKETS BONDS SURGE IN REBOUND STOCKS ADVANCE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES SOARED IN A TECHNICAL REBOUND FROM RECENT DEPRESSED LEVELS STOCK PRICES ADVANCED AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 392 POINTS TO 367417 STANDARD & POOR'S 500STOCK INDEX ROSE 190 TO 46103 AND THE NASDAQ COMPOSITE INDEX JUMPED 869 TO 74682 ANALYSTS SAID THE BONDMARKET RALLY WAS AIDED BY BETTERTHANEXPECTED INVESTOR RECEPTION OF THE TREASURY'S AUCTION OF FIVEYEAR NOTES ALSO TRADERS WHO HAD BET ON A PROLONGED SLUMP IN BOND PRICES BOUGHT BONDS TO COVER SHORT POSITIONS A DROP IN COMMODITIES PRICES PARTICULARLY OIL ALSO EASED BOND INVESTORS' WORRIES ABOUT INFLATION DONALD MAUDE CHIEF US FIXEDINCOME STRATEGIST AT SCOTIA MCLEOD USA SAID A SPATE OF STRONG ECONOMIC REPORTS FOR OCTOBER HELPED TO SET OFF THE BOND MARKET'S RECENT PLUNGE BUT NOW HE SAID THE PSYCHOLOGY IN THE MARKET MAY BE SETTLING DOWN PEOPLE ARE BEGINNING TO THINK THAT NOVEMBER'S NUMBERS WILL NOT BE AS BAD FOR BONDS AS OCTOBER'S WERE MR MAUDE SAID SOME BOND INVESTORS BELIEVE SIGNS OF MODERATING ECONOMIC STRENGTH MAY START TO SHOW UP AS SOON AS TODAY WITH THE RELEASE OF THE GOVERNMENT'S REPORT ON DURABLEGOODS ORDERS FOR OCTOBER THESE INVESTORS BET THE REPORT WOULD BE WEAKER THAN EXPECTED WHICH THEY ANTICIPATE WOULD BOOST BOND PRICES WORLDWIDE STOCK PRICES WERE UNCHANGED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ENDED AT 10842 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2592 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1162 ISSUES ROSE AND 898 FELL BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN A POINT OR OVER 10 FOR EACH 1000 FACE AMOUNT TO YIELD 631 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17020 MARKS AND 10867 YEN COMPARED WITH 17038 MARKS AND 10843 YEN MONDAY 9311240084 931124 MARKETING & MEDIA WHAT'LL IT BE PAL FILL IT WITH REGULAR OR AN ORDER OF FRIES MCDONALD'S AND OIL COMPANIES IN TALKS TO BRING FAST FOOD TO A GAS STATION NEAR YOU BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL MCDONALD'S CORP WANTS TO REDEFINE THE GASSTATION REQUEST FILL 'ER UP THE FASTFOOD CHAIN ON THE PROWL FOR NEW PLACES TO SERVE ITS FARE IS EXPLORING ALLIANCES WITH OIL COMPANIES THAT COULD PUT BIG MACS AND FRIES IN GAS STATIONS THROUGHOUT THE US TESTS OF THE CONCEPT INCLUDE KIOSKS INSIDE CONVENIENCE STORES WITH GAS PUMPS IN NAPLES FLA PALMER MASS AND INDIANAPOLIS AND A FREESTANDING RESTAURANT AT A TEXACO OUTLET IN BEEBE ARK MCDONALD'S EXECUTIVES CITED SUCH LOCATION OPPORTUNITIES YESTERDAY AS THEY OPENED FOR ANALYSTS AND REPORTERS THEIR ROADMAP BY WHICH THEY HOPE TO SIGNIFICANTLY EXTEND THE COMPANY'S REACH IT INCLUDES FORAYS INTO VARIOUS NONTRADITIONAL LOCATIONS WITH EVERYTHING FROM PORTABLE CARTS AND MORE ELABORATE MOBILE UNITS TO CATERING SERVICES AND POSSIBLY EVEN HOME DELIVERY ABOUT 80 RESTAURANTS IN THE NORFOLK VA AREA CURRENTLY ARE EXPERIMENTING WITH DELIVERY WE'RE PLEASED WITH THE RESULTS BUT NEED TO SEE WHAT THE IMPLICATIONS ARE SAID EDWARD H RENSI PRESIDENT OF MCDONALD'S US OPERATIONS THAT IDEA WILL BE TESTED IN TWO OTHER MARKETS NEXT YEAR HE SAID AS REPORTED MCDONALD'S IS ACCELERATING ITS GLOBALEXPANSION PACE TO OPEN THE EQUIVALENT OF ONE STORE EVERY EIGHT HOURS OR SO FOR THE NEXT SEVERAL YEARS THAT WORKS OUT TO AS MANY AS 1200 NEW RESTAURANTS ANNUALLY A NUMBER THE COMPANY INDICATED COULD BE CONSERVATIVE WE SERVE LESS THAN ONE HALF OF 1 OF THE WORLD'S POPULATION AND WE ARE THE LARGEST FOODSERVICE ORGANIZATION IN THE WORLD SAID MICHAEL R QUINLAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OUR WORLDWIDE PENETRATION IS TOO LOW OUR MARKET SHARE IS NOT BIG ENOUGH DOES HE SEE ANY LIMITS TO WHERE MCDONALD'S MIGHT GO MR QUINLAN WAS ASKED NO VERBOTEN TERRITORY HE REPLIED AS LONG AS WE PAY CLOSE ATTENTION TO BREAKEVEN SALES FOR ANY NEW LOCATIONS WE CANNOT RULE OUT ANY VENUE BUT EXPANSION PLANS APPARENTLY WILL STOP SHORT OF MCDONALD'S MENU EXECUTIVES SAID THEY WOULD CONCENTRATE ON THE CURRENT HAMBURGERCHICKENBREAKFAST CORES THUS SEEMINGLY PUTTING EARLIER PLANS FOR A SEPARATE DINNER MENU ON HOLD AGAIN LIKEWISE PIZZA WHICH NOW IS IN ONLY ABOUT 500 OF THE CHAIN'S 9200 US RESTAURANTS PEOPLE DON'T THINK OF MCDONALD'S FIRST WHEN THEY THINK OF PIZZA MR RENSI ACKNOWLEDGED ON THE WHOLE IT'S BEEN A GOOD YEAR FOR MCDONALD'S EXECUTIVES SAID AND THEY FORECAST ANOTHER RECORD YEAR IN 1994 FOR 1993 SYSTEMWIDE SALES ARE EXPECTED TO EXCEED 23 BILLION COMPARED WITH 218 BILLION LAST YEAR CASH GENERATED FROM OPERATIONS SHOULD REACH 15 BILLION WITH THAT NOT SPENT ON CAPITAL NEEDS GOING TO REPURCHASE SHARES 9311240083 931124 ECONOMY US AND EC SIGNAL PROGRESS IN GATT TALKS RECENT PROPOSALS HOWEVER COULD STIR OPPOSITION TO ACCORD IN CONGRESS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TOP TRADE OFFICIALS FROM THE US AND THE EUROPEAN COMMUNITY REPORTED PROGRESS IN NARROWING DIFFERENCES IN WORLD TRADE TALKS BUT SEVERAL ISSUES THAT HAVE RECENTLY SURFACED COULD MAKE IT TOUGHER TO SELL A DEAL TO CONGRESS AFTER TWO DAYS OF TALKS US TRADE REPRESENTATIVE MICKEY KANTOR SAID HE AND EC TRADE MINISTER SIR LEON BRITTAN WERE TRYING TO WRAP UP A PRELIMINARY AGREEMENT SOON IN ORDER TO MEET A CONGRESSIONAL DEADLINE OF DEC 15 FOR HIS PART SIR LEON SAID THEY HAD MADE PROGRESS POINTING IN THE DIRECTION OF AN AGREEMENT THE TWO NEGOTIATORS PLAN TO CONTINUE THEIR TALKS DEC 1 IN BRUSSELS BOTH OFFICIALS WERE SHORT ON SPECIFICS AND REITERATED THAT THE US AND EC REMAIN DIVIDED OVER AGRICULTURAL ISSUES TARIFFS AND EUROPEAN QUOTAS ON US TELEVISION SHOWS AND MOVIES NEVERTHELESS SIR LEON SAID WE HAVE NARROWED THE RANGE OF DIFFICULTIES HOWEVER A DEAL ALREADY CUT BY THE EC AND US HAS KICKED UP CONTROVERSY AMONG US INDUSTRIES WHOSE SUPPORT IS CRUCIAL IF CONGRESS IS TO APPROVE ANY TRADE DEAL SEVERAL DAYS AGO THE TWO SIDES REACHED A PRELIMINARY AGREEMENT TO GREATLY STRENGTHEN THE DISPUTERESOLUTION PANELS CONVENED BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA WHICH IS SPONSORING THE TRADE TALKS THOSE PANELS JUDGE WHETHER A NATION'S LAWS OR TRADE ACTIONS CONTRAVENE GATT REQUIREMENTS AND CAN APPROVE TRADE SANCTIONS AGAINST AN OFFENDING NATION BUT THE PANELS HAVE OFTEN BEEN POWERLESS BECAUSE THEIR FINDINGS DON'T TAKE EFFECT UNLESS EVERY GATT NATION INCLUDING THE DEFENDANT ENDORSES THE PANEL'S RULINGS NOW THE US AND EC HAVE AGREED TO VASTLY STRENGTHEN THE GATT PANELS BY TURNING THE PROCEDURE ON ITS HEAD IF A NATION WINS A TRADE COMPLAINT IT WOULD AUTOMATICALLY PROGRESS TO A CONCLUSION UNLESS ALL THE PARTIES INCLUDING THE WINNING PARTY AGREE TO SET IT ASIDE ENVIRONMENTAL GROUPS AND US INDUSTRIES HAVE COMPLAINED THAT SUCH AN ARRANGEMENT WOULD IMPINGE ON US SOVEREIGNTY AND STRIP THE US OF ITS ABILITY TO TAKE UNILATERAL ACTIONS PARADOXICALLY US NEGOTIATORS HAVE PRESSED FOR THE CHANGE IN THE GATT RULES OUT OF FRUSTRATION THAT IT CAN TAKE YEARS FOR THE US TO PREVAIL IN GATT CASES WE THOUGHT OF OURSELVES AS PLAINTIFFS SAID ALAN WOLFF A FORMER US TRADE OFFICIAL WHO REPRESENTS THE SEMICONDUCTOR INDUSTRY AND OTHERS OPPOSED TO THIS CHANGE WE WANTED TO PLACE FOREIGN PRACTICES IN CROSS HAIRS OF A RIFLE SIGHT AND MAKE SURE WE COULDN'T MISS ALL TOO OFTEN WE'LL BE THE ONES IN THE CROSS HAIRS MR KANTOR PLAYED DOWN THE CHANGES SAYING NOTHING IS AGREED UPON UNTIL EVERYTHING IS AGREED UPON IN THE GATT ROUND HE ALSO HINTED IN THE NEWS CONFERENCE THAT THE US MIGHT SEEK SOME MODIFICATION OF THE RULES BUT IT'S CLEAR THAT TOP US TRADE OFFICIALS HAVE BEEN FOCUSED ON THE NORTH AMERICAN FREE TRADE AGREEMENT AND HAVE ONLY RECENTLY BEGUN TO CONCENTRATE ON GATT ISSUES ON MONDAY MEMBERS OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL ARE SCHEDULED TO TAKE UP GATT ISSUES BUT WITH ONLY THREE WEEKS UNTIL A GATT DEADLINE THEY'LL HAVE TO QUICKLY MAKE DECISIONS ABOUT PRIORITIES YESTERDAY 21 LAWMAKERS LED BY SEN JEFF BINGAMAN D NM AND REP GEORGE BROWN D CALIF WROTE TO THE PRESIDENT TO EXPRESS DEEP CONCERN THAT THE TRADE PACT WOULD MAKE US SUBSIDIES FOR RESEARCH PROJECTS IMPROPER UNDER GATT RULES UNDER A GATT DRAFT PROPOSAL OTHER NATIONS COULD PRESS FOR TRADE SANCTIONS AGAINST THE US IF THE FEDERAL SHARE OF AN APPLIED INDUSTRIAL RESEARCH PROJECT TOPPED 25 SEVERAL CLINTON INDUSTRIAL POLICY INITIATIVES COULD BE JUDGED IMPROPER UNDER THAT STANDARD IN ADDITION THE HEADS OF 17 MAJOR RETAIL COMPANIES INCLUDING KMART CORP AND JC PENNEY CO COMPLAINED TO MR CLINTON ABOUT HIS PLEDGE TO PRESS IN THE GATT TALKS TO SLOW THE PHASING OUT OF AN ARCANE QUOTA SYSTEM GOVERNING APPAREL AND TEXTILE IMPORTS THE PLEDGE CALLS INTO QUESTION OUR DECISION TO AGGRESSIVELY SUPPORT YOUR TRADELIBERALIZATION EFFORTS THE EXECUTIVES WARNED THE PRESIDENT MADE THAT PLEDGE TO WOO TEXTILE STATE LAWMAKERS TO VOTE FOR NAFTA BUT IT WAS MADE AT THE COST OF COMPLICATING HIS ABILITY TO PUT TOGETHER A GATT DEAL SENIOR ADMINISTRATION OFFICIALS ARGUE THAT A NAFTA VICTORY MAKES IT EASIER FOR THE US TO WALK AWAY FROM A GATT DEAL NOT TO ITS LIKING BECAUSE THE US HAS ALREADY SHOWN IT BELIEVES IN LIBERALIZED TRADE BUT THE EC'S SIR LEON SAID HE HOPED THE EUPHORIA OF PASSING NAFTA WON'T BLIND THE CLINTON ADMINISTRATION TO THE IMPORTANCE OF CRAFTING A GATT DEAL THE ECONOMIC IMPORTANCE OF WHICH FAR OUTWEIGHS THAT OF NAFTA BHUSHAN BAHREE IN GENEVA CONTRIBUTED TO THIS ARTICLE 9311240082 931103 RULE OF LAW WASHINGTON'S INEPT POLICE FORCE BY TUCKER CARLSON ALTHOUGH PRESIDENT CLINTON EVENTUALLY TOLD WASHINGTON'S MAYOR THAT HE WOULD NOT MOBILIZE THE NATIONAL GUARD TO PATROL THE CITY'S STREETS HE CLAIMED TO BE VERY SYMPATHETIC TO THE IDEA WHO WOULDN'T BE LIKE MANY OTHER AMERICAN CITIES WASHINGTON IS A VIOLENT PLACE MAYOR SHARON PRATT KELLY'S REQUEST ALTHOUGH CRITICIZED BY MANY WAS NOT ILLOGICAL IT CAME AROUND THE TIME WASHINGTON HAD RECORDED ITS 376TH HOMICIDE THIS YEAR THE PROBLEM WITH THE REQUEST IS THAT WASHINGTON ALREADY HAS ENOUGH POLICE IN FACT IT HAS MORE OF THEM PER CAPITA THAN ANY CITY IN AMERICA SO FAR HOWEVER THEY HAVEN'T DONE MUCH TO CONTROL CRIME INDEED WASHINGTON RESIDENTS ARE SADDLED WITH A POLICE DEPARTMENT THAT IS INEPT AND UNRESPONSIVE AT BEST CRIMINAL AT WORST HOW DID THIS HAPPEN FOR YEARS WASHINGTON'S POLICE FORCE ENJOYED A REPUTATION AS ONE OF THE BEST IN THE COUNTRY IN THE 1950S IT WAS NOT UNCOMMON FOR DETECTIVES TO SOLVE ALL THE DISTRICT'S MURDER CASES IN A GIVEN YEAR THEN IN THE MID1970S THE CITY ADOPTED A RESIDENCY REQUIREMENT FOR NEW POLICE OFFICERS THE RULE LIMITED THE POOL OF APPLICANTS DRAMATICALLY BY PREVENTING EXPERIENCED COPS FROM JOINING WASHINGTON'S FORCE WITHOUT MOVING THEIR FAMILIES TO THE CITY ALTHOUGH THE REGULATION WAS LATER REPEALED IT CAUSED THE DEPARTMENT TO ADOPT SLACK HIRING POLICIES THAT REMAIN IN PLACE EVEN WITH AN AFFIRMATIVE ACTION POLICY THAT ADDS POINTS TO THE SCORES OF CANDIDATES SIMPLY FOR ATTENDING WASHINGTON'S PUBLIC SCHOOLS AND NOT NECESSARILY GRADUATING MANY POTENTIAL OFFICERS COULDN'T PASS THE POLICE ACADEMY'S TESTS SO THE DEPARTMENT CHANGED REQUIREMENTS IN MAY 1985 A RECRUIT AT THE POLICE ACADEMY COULD BE EXPELLED FOR FAILING TWO EXAMS SEVEN MONTHS LATER THE SAME RECRUIT WOULD HAVE TO FAIL SIX EXAMS TO BE SENT PACKING BUT DROPPING THE BENCHMARK WASN'T ION BARRY CAME TO THE RESCUE HIS SOLUTION APPOINT OFFICERS BY LOTTERY THE ULTIMATE IN EQUAL OPPORTUNITY EVEN BY MR BARRY'S STANDARDS THIS WAS PRETTY WACKY CONGRESS THOUGHT SO TOO AND ULTIMATELY SQUELCHED THE IDEA IN ITS BUDGET APPROPRIATION FOR THE CITY BUT THE SPIRIT OF NONJUDGMENT LIVED ON IN 1988 AFTER 40 OF GRADUATING RECRUITS FAILED THE FINAL COMPREHENSIVE EXAM THE POLICE ACADEMY ABOLISHED THE TEST ALL THIS HAD A PREDICTABLE EFFECT ON THE CALIBER OF WASHINGTON COPS I SAW PEOPLE WHO WERE PRACTICALLY ILLITERATE SAYS MIKE HUBBARD A DETECTIVE WHO SPENT FIVE YEARS TRAINING RECRUITS I'VE SEEN PEOPLE DIAGNOSED AS BORDERLINERETARDED GRADUATE FROM THE POLICE ACADEMY THINGS HAD GOTTEN WORSE BY 1989 WHEN IN AN ATTEMPT TO FIGHT RISING CRIME THE CITY HIRED NEARLY 2000 NEW OFFICERS IN OUR ZEAL TO GET AS MANY OFFICERS ON THE STREET AS ARE BEING DEMANDED SAID DEPUTY CHIEF MELVIN CLARK WE KIND OF RUSHED THE TRAINING PROCESS THAT IS A DIPLOMATIC ASSESSMENT MR HUBBARD PUTS IT SIMPLY WE SWORE IN ENTIRE CLASSES HUNDREDS OF PEOPLE WITHOUT BACKGROUND CHECKS OFTEN IT SEEMED THAT POLICE OFFICIALS WEREN'T INTERESTED IN WHAT AN APPLICANT HAD DONE BEFORE SIGNING UP FOR A GUN AND BADGE LIKE OTHER CITIES WASHINGTON SEALS THE CRIMINAL RECORDS OF JUVENILE OFFENDERS ONCE THEY BECOME ADULTS APPARENTLY THE POLICY IS NOT TO ELIMINATE PEOPLE WITH CRIMINAL JUVENILE PASTS TO FIND OUT MORE I CALLED THE RECRUITING OFFICE AND SPOKE WITH INVESTIGATOR DEBBIE REID I EXPLAINED THAT I WANTED TO JOIN THE FORCE BUT WAS WORRIED THAT MY EXTENSIVE JUVENILE CRIMINAL RECORD WOULD MAKE THAT IMPOSSIBLE NO SHE ASSURED ME THAT ALONE WILL NOT KEEP YOU FROM COMING ABOARD I THEN TOLD HER THAT TRUTH BE TOLD MY JUVENILE RECORD WAS PRETTY BAD IN FACT I SAID I HAD SPENT CONSIDERABLE TIME IN JAIL FOR AN ARMEDROBBERY CONVICTION SURELY THAT WOULD DISQUALIFY ME NOT NECESSARILY SHE SAID IT DEPENDS ON WHAT YOUR DISPOSITION WAS AT THE TIME AS WORD OF THE DEPARTMENT'S NEW AND INCLUSIVE HIRING PROCEDURES LEAKED OUT THOUSANDS TOOK ADVANTAGE A LOT OF PEOPLE WHO WERE IN THE DRUG RACKETS JOINED THE POLICE DEPARTMENT' SAYS FORMER WASHINGTON COP MONTAGUE HOLMES SOME OF THEM WENT STRAIGHT WHEN THEY JOINED THE DEPARTMENT AND SOME OF THEM DIDN'T LAST YEAR 36 OFFICERS WERE INDICTED ON CHARGES SUCH AS DOPE DEALING SEXUAL ASSAULT MURDER SODOMY AND KIDNAPPING IN ONE INSTANCE SCORES PERHAPS THOUSANDS OF CONFISCATED WEAPONS SLOPPY POLICE RECORDKEEPING MAKES IT IMPOSSIBLE TO KNOW THE EXACT NUMBER WERE STOLEN FROM A POLICE WAREHOUSE BY EMPLOYEES AT LEAST ONE WAS LATER USED IN A MURDER EVEN HONEST OFFICERS OFTEN ARE ILLSUITED FOR POLICE WORK ASIDE FROM A BASIC AGILITY TEST THE DEPARTMENT APPLIES ALMOST NO PHYSICAL STANDARDS TO RECRUITS FOR INSTANCE IT DOES NOT REQUIRE STRENGTH OR ENDURANCE TESTS EITHER OF WHICH MIGHT BRING THE CITY INTO CONFLICT WITH THE AMERICANS WITH DISABILITIES ACT CANDIDATES FOR THE FORCE A RECRUITING PAMPHLET SAYS MUST BE AT LEAST FIVE FEET TALL AND CARRY PROPORTIONATE WEIGHT ACCORDING TO ONE OFFICER OFFICIALS ARE LENIENT IN DETERMINING HOW MUCH WEIGHT IS PROPORTIONATE AS A RESULT HE SAYS THE FORCE HAS A NATIONWIDE REPUTATION FOR FAT COPS IN ADDITION TO ITS PERSONNEL PROBLEMS THE POLICE DEPARTMENT OFTEN OPERATES WITH INFERIOR AND OUTDATED EQUIPMENT MANY STATION HOUSES MAKE DO WITH ROTARYDIAL PHONES MR HUBBARD SAYS THE CLERICAL EQUIPMENT IN HIS OFFICE CONSISTS OF TWO MANUAL TYPEWRITERS A REPORT BY THE WASHINGTON TIMES FOUND THAT IN ONE POLICE DISTRICT 12 OUT OF 19 PATROL CARS WERE OUT OF SERVICE IN ANOTHER DISTRICT A LACK OF CARS SOMETIMES CAUSED BACKUPS OF 40 CALLS REQUIRING POLICE TO DEVISE A KIND OF TRIAGE SYSTEM BUT EVEN BETTER EQUIPMENT CAN'T SEEM TO SOLVE THE DEPARTMENT'S MORE BASIC SHORTCOMINGS IN THE LATE 1980S THE POLICE BEGAN TO PHASE IN NEW 9MM SERVICE PISTOLS WITHIN A SHORT TIME IT BECAME EVIDENT THAT SUCH WEAPONRY WAS BEYOND THE GRASP OF MANY COPS BETWEEN EARLY 1989 AND LATE 1992 MORE THAN ONE OUT OF EVERY SEVEN SHOTS FIRED BY WASHINGTON POLICE OFFICERS WAS FIRED ACCIDENTALLY IF SOME COPS CONSIDER THEIR GUNS HARD TO OPERATE OTHERS FIND POLICE REPORTS EVEN MORE CHALLENGING GARY HANKINS FORMER HEAD OF WASHINGTON'S POLICE UNION CLAIMS MANY YOUNG OFFICERS APPEAR BAFFLED BY ROUTINE PAPERWORK REPORTS THEY TURN IN MAY BE UNUSABLE UNREADABLE HE SAYS A WASHINGTON PROSECUTOR SAYS POORLY WRITTEN REPORTS OR INCOMPLETE POLICE WORK CAN MAKE IT IMPOSSIBLE TO WIN CONVICTIONS IN CRIMINAL CASES THE PROOF IS IN THE COURTS BETWEEN 1986 AND 1990 ABOUT A THIRD OF MURDER CASES BROUGHT BY THE POLICE WERE DISMISSED ACCORDING TO THE WASHINGTON POST POLICE FAILED TO ARREST ANYBODY IN NEARLY HALF THE CITY'S MURDER CASES BETWEEN 1988 AND 1990 AND FOR THE 1286 KILLINGS DURING THOSE YEARS ONLY 94 PEOPLE WERE CONVICTED OF FIRSTDEGREE MURDER OBVIOUSLY UNTIL THE CITY REFORMS ITS OWN POLICE DEPARTMENT IT'S UNLIKELY THAT ADDITIONAL WARM BODIES IN UNIFORM WHETHER THEY ARE NATIONAL GUARDSMEN OR FOREIGN LEGIONNAIRES WILL BE ABLE TO BRING PEACE TO WASHINGTON'S STREETS MR CARLSON IS AN EDITORIAL WRITER FOR THE ARKANSAS DEMOCRAT GAZETTE IN LITTLE ROCK A LONGER VERSION OF THIS ARTICLE APPEARED IN THE WINTER 1993 ISSUE OF POLICY REVIEW SEE RELATED LETTERS LETTERS TO THE EDITOR DC'S POLICE CHIEF ANSWERS CRITICISMS WSJ NOV 24 1993 9311030015 YY93 MM11 9311240081 931124 LAW JURY SETS DAMAGES AGAINST AMOCO OF 417 MILLION BY MARJORIE NEEDHAM STAFF REPORTER OF THE WALL STREET JOURNAL AMOCO CORP WAS ASSESSED 417 MILLION IN DAMAGES AFTER A JURY IN TEXAS FOUND THAT THE COMPANY VIOLATED AN AGREEMENT TO SELL SOME WYOMING OIL PROPERTIES FOR 18 MILLION RUBICON CORP A SMALL CLOSELY HELD HOUSTON OIL COMPANY WON THE AWARD AFTER A MATAGORDA COUNTY JURY FOUND CHICAGOBASED AMOCO LIABLE FOR FRAUD AND BREACH OF CONTRACT IN REFUSING TO SELL THE PROPERTIES TO RUBICON IN 1990 FACTORING IN EXPECTED REVENUE FROM THE PROPERTIES THE JURY AWARDED RUBICON 125 MILLION IN ACTUAL DAMAGES 250 MILLION IN PUNITIVE DAMAGES AND 42 MILLION IN ATTORNEY'S FEES THE AWARD CAN BE CHANGED BY THE JUDGE WHEN HE ENTERS JUDGMENT IN THE CASE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMOCO'S STOCK EASED 125 CENTS TO CLOSE AT 55125 JURIES IN TEXAS HAVE DEVELOPED A REPUTATION FOR MAKING BIG ASSESSMENTS THE LARGEST EVER WAS THE 111 BILLION AWARDED TO PENNZOIL CO IN DECEMBER 1985 AFTER TEXACO INC WAS FOUND BY A JURY IN HOUSTON TO HAVE INTERFERED WITH PENNZOIL'S PLANS TO BUY GETTY OIL CO THE AWARD FORCED TEXACO TO FILE FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SUBSEQUENTLY TEXACO SETTLED THE LITIGATION BY PAYING PENNZOIL 3 BILLION AS IN THE TEXACOPENNZOIL DISPUTE THE AMOCO CASE CENTERED ON THE ISSUE OF WHEN A CONTRACT IS BINDING JOHN M O'QUINN THE HOUSTON ATTORNEY THAT REPRESENTED RUBICON SAID THE COMPANY HAD SUBMITTED A WRITTEN OFFER TO BUY AMOCO'S PRODUCTION INTEREST IN THE WINKLEMAN DOME AND LANDER FIELDS IN WYOMING AND HAD RECEIVED AN UNSIGNED CONTRACT FROM AMOCO'S AMOCO PRODUCTION UNIT BY MAIL MR O'QUINN SAID THAT RUBICON ALSO HAD AN ORAL AGREEMENT WITH AMOCO OFFICIALS THAT AGREEMENT AND THE UNSIGNED CONTRACT WERE PROOF RUBICON ARGUED THAT AMOCO INTENDED TO SELL THE PROPERTY TO RUBICON AMOCO HOWEVER ENDED UP WITHDRAWING THE TWO ADJOINING WYOMING OIL FIELDS FROM THE MARKET SAYING THE FIELDS HAD ENVIRONMENTAL PROBLEMS RUBICON SUED ALLEGING THAT AMOCO WANTED TO SHOP AROUND THE PROPERTIES FOR A HIGHER PRICE THE JURY APPARENTLY AGREED AN AMOCO SPOKESMAN SAID THE COMPANY DENIES A CONTRACT EXISTED BECAUSE STATE LAW REQUIRES THAT CONTRACTS TO PURCHASE REAL ESTATE MUST BE IN WRITING AND IN FACT AMOCO STILL OWNS AND PRODUCES OIL FROM THE FIELDS AMOCO WILL FILE AN APPEAL AND EXPECTS TO WIN IT THE SPOKESMAN SAID WE ARE CONFIDENT THE DECISION WILL BE SET ASIDE GERALD TREECE ASSISTANT DEAN AND PROFESSOR OF CONSTITUTIONAL LAW AT SOUTH TEXAS COLLEGE OF LAW IN HOUSTON SAID THAT ORAL AGREEMENTS BY THEMSELVES AREN'T ENFORCEABLE BUT THERE ARE MANY EXCEPTIONS TO THE STATE REQUIREMENT FOR WRITTEN REAL ESTATE CONTRACTS 9311240080 931124 WHO'S NEWS COMPUADD'S CEO FOUNDER HAYDEN RESIGNS TOP POST BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL BILL H HAYDEN FOUNDER OF COMPUADD COMPUTER CORP AND A PIONEER IN THE MAILORDER COMPUTER BUSINESS SAID HE'S STEPPING DOWN AS CHIEF EXECUTIVE OFFICER MR HAYDEN 46 YEARS OLD SAID HE WILL RETAIN A 20 STAKE IN THE CLOSELY HELD COMPANY LAUNCHED OUT OF THE TRUNK OF HIS CAR 11 YEARS AGO DURING THE PAST DECADE COMPUADD GREW INTO ONE OF THE WORLD'S LARGEST MAILORDER COMPUTER CONCERNS WITH 1992 SALES OF MORE THAN 500 MILLION BEFORE STUMBLING BADLY IN ITS EFFORTS TO EXPAND INTO PC RETAILING IN JUNE AFTER A STANDOFF WITH ITS CREDITORS AND A BEATING IN THIS SPRING'S PC PRICE WAR COMPUADD FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION THE COMPANY EMERGED FROM THOSE PROCEEDINGS EARLIER THIS MONTH THANKS IN PART TO A 81 MILLION PERSONAL INVESTMENT FROM MR HAYDEN AND THE TRANSFER OF 75 OF THE COMPANY TO UNSECURED CREDITORS COMPUADD BASED IN AUSTIN TEXAS SAID MR HAYDEN'S DUTIES WILL BE ASSUMED BY RICHARD W KRAUSE COMPUADD'S PRESIDENT AND CHIEF OPERATING OFFICER UNTIL A SUCCESSOR IS NAMED MR KRAUSE 42 JOINED COMPUADD IN 1989 AND HAS BEEN IN HIS LATEST JOB SINCE JUNE IN AN INTERVIEW LAST WEEK MR KRAUSE SAID COMPUADD IS IN MERGER TALKS WITH SEVERAL POTENTIAL PARTNERS ALTHOUGH NO DEAL HAS BEEN REACHED MR KRAUSE SAID DISCUSSIONS HAVE HEATED UP CONSIDERABLY TO SELL AN EQUITY STAKE IN COMPUADD FOR CASH OR STOCK EARLIER THIS MONTH ZEOS INTERNATIONAL LTD IN MINNEAPOLIS SAID IT HAD BEGUN MERGER DISCUSSIONS WITH COMPUADD THOUGH BOTH COMPANIES DESCRIBED THOSE TALKS AS PRELIMINARY AS FOR MR HAYDEN HE SAID HE WILL SPEND THE REST OF THIS YEAR FOCUSING ON COMPUADD INFORMATION SERVICES A SPINOFF COMPANY THAT DEVELOPS POINTOFSALE SOFTWARE FOR RETAILERS COMPUADD INFORMATION IS OWNED BY MR HAYDEN AND ALSO HEADQUARTERED IN AUSTIN MR HAYDEN A FORMER TEXAS INSTRUMENTS INC ENGINEER SAID HE WILL BEGIN NEXT YEAR LOOKING FOR NEW INVESTMENT OPPORTUNITIES AND NEW COMPANIES TO LAUNCH I ENJOY THE PROCESS OF BUILDING COMPANIES HE SAID 9311240079 931124 LOCKHEED MCDONNELL DOUGLAS TRIP UP EACH OTHER'S BIG FOREIGN ORDERS FOR JETS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL THE TWO SURVIVING US MAKERS OF FIGHTER JETS HAVE TRIPPED UP EACH OTHER'S HOTTEST FOREIGN DEALS LOCKHEED CORP HAS CONVINCED ISRAEL TO RECONSIDER ITS IMPENDING 18 BILLION PURCHASE OF 20 MCDONNELL DOUGLAS CORP F15E FIGHTERS ACCORDING TO ISRAELI AND US INDUSTRY OFFICIALS ST LOUISBASED MCDONNELL DOUGLAS MEANWHILE HAS GUMMED UP A TENTATIVE 890 MILLION SALE OF 18 OF LOCKHEED'S F16 JETS TO SINGAPORE INDUSTRY AND US OFFICIALS SAY AS DEFENSE SPENDING SPIRALS DOWNWARD AROUND THE GLOBE SUCH BIG SALES ABROAD ARE GETTING HARD TO FIND AND COMPETITION IS MORE CUTTHROAT THAN EVER JUST A WEEK AGO ISRAEL WAS NEAR TO ANNOUNCING AN ORDER FOR THE MCDONNELL F15S BUT IT SUDDENLY AGREED TO A POSTPONEMENT AFTER A PERSONAL APPEAL TO ISRAELI PRIME MINISTER YITZHAK RABIN FROM LOCKHEED CHAIRMAN DANIEL TELLEP LATE LAST WEEK IN NEW YORK ACCORDING TO ISRAELI AND LOCKHEED OFFICIALS FAMILIAR WITH THE DEVELOPMENTS AT THE SAME TIME A TEAM OF MANAGERS FROM THE MCDONNELL DOUGLAS AEROSPACE EAST HEADQUARTERS IN ST LOUIS WAS WRAPPING UP A TWODAY PITCH FOR THEIR F/A18 NAVAL ATTACK FIGHTER IN SINGAPORE THAT VISIT OCCURRED JUST A DAY AFTER THE DEFENSE DEPARTMENT ADVISED CONGRESS OF ITS INTENT TO SELL 18 OF LOCKHEED'S PLANES THERE A PENTAGON SPOKESMAN CONFIRMED THAT SINGAPORE HAS OFFICIALLY REQUESTED INFORMATION ON THE F/A18 AND A US NAVY BRIEFING IS LIKELY TO BE SET FOR EARLY NEXT YEAR MCDONNELL DOUGLAS IS NEAR A FINAL AGREEMENT TO SELL EIGHT OF THOSE PLANES TO MALAYSIA WHICH BORDERS SINGAPORE BUT THE ISRAELI CONTEST ONE OF THE LAST POTENTIAL LARGE FOREIGN SALES EXPECTED IN THE NEAR FUTURE FOR EITHER COMPANY HAS LONG BEEN THE MORE CONTROVERSIAL OF THE TWO CONTESTS THAT IS BECAUSE IT WOULD UPGRADE ISRAEL'S ARMAMENTS JUST AS A NEW PEACE ACCORD HAS BEEN STRUCK WITH PALESTINIANS AND BECAUSE US MILITARY FINANCIAL GRANTS WOULD BE USED FOR THE PURCHASES AT FIRST THE ISRAEL COMPETITION PITTED THE MCDONNELL F/A18 AGAINST THE LOCKHEED F16 MUCH OF WHICH IS MADE AT A FORMER GENERAL DYNAMICS CORP PLANT IN FORT WORTH TEXAS IN THAT CONTEST LOCKHEED OFFERED THE ISRAELIS A CHANCE TO PERFORM FINAL ASSEMBLY OF THE 44 JETS IN ISRAEL SAY PEOPLE FAMILIAR WITH THE TERMS NOW THAT ISRAEL HAS A PREFERENCE FOR THE LONGRANGE MCDONNELL F15E THOSE PEOPLE SAY LOCKHEED IS OFFERING TO ADD TO THE F16 TECHNOLOGIES THAT MIGHT ARISE FROM THE COMPANY'S MORE ADVANCED US PLANES THE RADAREVADING F117A STEALTH FIGHTER AND THE FUTURISTIC F22 MCDONNELL AND LOCKHEED BOTH CLAIMED TO HAVE OFFERED THE BETTER PLANE DURING ISRAEL'S INITIAL EVALUATION OF THE F/A18 AND THE F16 ISRAELI OFFICIALS HAD SINCE SWITCHED TO THE MCDONNELL F15E BECAUSE THEY NEED A RANGE OF 750 TO 1000 MILES TO REACH THE COUNTRIES THAT NOW POSE THEIR GREATEST THREATS AMONG THEM IRAQ AND IRAN LOCKHEED SAYS IT WANTS A CHANCE TO COMPETE ANEW AGAINST THE F15 WITH AN F16 VERSION THAT CAN TRAVEL LONG DISTANCES A SPOKESMAN FOR THE ISRAELI MINISTRY OF DEFENSE ODED BEN AMI CONFIRMED MR TELLEP'S APPEAL AND MR RABIN'S AGREEMENT TO DELAY A PURCHASE DECISION UNTIL JANUARY HE ALSO CONFIRMED THAT ISRAEL IS INTERESTED IN UPGRADING WHATEVER AIRPLANES IT PURCHASES AND THAT THE SUBJECT IS UP FOR DISCUSSION WITH THE CONTENDING COMPANIES MR TELLEP'S EFFORTS WERE AIDED BY 25 MEMBERS OF THE TEXAS CONGRESSIONAL DELEGATION WHICH IN A LETTER LAST WEEK TO MR RABIN CRITICIZED THE SHIFT TO THE F15E AS HIGHLY IRREGULAR AND AS UNCONTESTED MCDONNELL DOUGLAS MANAGERS MAINTAIN THE F15 PERFORMS MISSIONS THAT THE OTHER JETS CAN'T LOCKHEED BACKERS SAY THE F16 CAN DELIVER SIMILAR PERFORMANCE AT A SHARPLY LOWER COST SPOKESMEN FOR BOTH THE BIG DEFENSE CONTRACTORS DECLINED TO COMMENT ON THE ISRAEL AND SINGAPORE COMPETITIONS ALTHOUGH LOCKHEED OFFICIALS CONFIRMED MR TELLEP'S ACTIONS MANAGERS AT THE TWO COMPANIES SAID RIVALRY HAS ALWAYS BEEN INTENSE BUT THEY NOTED THAT LATELY PROSPECTS FOR LARGE SALES ARE DWINDLING THERE ARE FEWER AND FEWER BIG PROGRAMS SAID DWAIN MAYFIELD VICE PRESIDENT OF THE FORT WORTH DIVISION OF LOCKHEED WHICH IS BASED IN CALABASAS CALIF SAID ROBERT TRICE A VICE PRESIDENT AT MCDONNELL DOUGLAS WITH FEWER AND FEWER OPPORTUNITIES IN THE INTERNATIONAL MARKETPLACE I THINK THERE IS MORE AND MORE FOCUS AND ATTENTION ON EACH INDIVIDUAL OPPORTUNITY WHILE TOP EXECUTIVES ARE MUM ABOUT THE DUELS SOME MANAGERS AT BOTH COMPANIES ARE PRIVATELY EXASPERATED BY THEIR RIVALS' MEDDLING IN TRANSACTIONS THAT HAD BEEN PROCEEDING SMOOTHLY SOME US GOVERNMENT OFFICIALS CONTEND THAT IN BOTH SINGAPORE AND ISRAEL FOREIGN OFFICIALS MERELY ARE USING MCDONNELL DOUGLAS TO PRESSURE LOCKHEED FOR A BETTER DEAL A CHARGE THAT INFLAMED MANAGERIAL TEMPERS AT MCDONNELL DOUGLAS ONE US DEFENSE OFFICIAL SAID SINGAPORE HAS BEEN ANGERED BY A US REFUSAL TO ALLOW ADVANCED ISRAELI FLIGHT COMPUTERS TO BE PLACED ON THE F16S IN A SEPARATE DEVELOPMENT YESTERDAY MOODY'S INVESTORS SERVICE INC PLACED DEBT OF MCDONNELL DOUGLAS AND ITS PRIMARY FINANCIAL SUBSIDIARY UNDER REVIEW FOR POSSIBLE UPGRADE BECAUSE THE COMPANY HAS BEEN CUTTING DEBT AND RESOLVING FINANCIAL UNCERTAINTIES AMY DOCKSER MARCUS IN TEL AVIV CONTRIBUTED TO THIS ARTICLE 9311240078 931124 BUSINESS BRIEF VINTAGE PETROLEUM INC TWO OIL AND GAS ACQUISITIONS FOR 614 MILLION CONCLUDED VINTAGE PETROLEUM INC SAID IT COMPLETED TWO ACQUISITIONS FOR A COMBINED PURCHASE PRICE OF 614 MILLION THE TULSA OKLA ENERGY COMPANY SAID IT BOUGHT CERTAIN OIL AND GAS PROPERTIES LOCATED IN SOUTHERN CALIFORNIA AND THE US GULF COAST AREA FROM SANTA FE ENERGY RESOURCES INC FOR 43 MILLION THE PURCHASE PRICE WAS ADJUSTED TO REFLECT A MAY 1 1993 EFFECTIVE DATE VINTAGE SAID IT ALSO COMPLETED ITS 184 MILLION PURCHASE FROM PRUDENTIAL INSURANCE CO OF AMERICA OF AN INCREASED STAKE IN CERTAIN OIL AND GAS PROPERTIES AND GATHERING SYSTEMS IN OKLAHOMA AND KANSAS SEPARATELY VINTAGE SAID ITS BANKS HAVE INCREASED THE COMPANY'S REVOLVING LINE OF CREDIT TO 200 MILLION FROM 160 MILLION ABOUT 50 MILLION IS CURRENTLY UNUSED AND AVAILABLE FOR FUTURE ACQUISITIONS VINTAGE SAID 9311240077 931124 BUSINESS BRIEF BARNES & NOBLE INC FISCAL QUARTER'S LOSS GREW WIDER AFTER SPECIAL CHARGE BOOKSTORE OPERATOR BARNES & NOBLE INC NEW YORK REPORTED A WIDENING LOSS FOR THE FISCAL THIRD QUARTER AFTER A 106 MILLION CHARGE FOR THE REDEMPTION OF PREFERRED STOCK BUT SALES FROM THE COMPANY'S DISCOUNT SUPERSTORES CONTRIBUTED TO A 22 JUMP IN REVENUE BARNES & NOBLE WHICH WENT PUBLIC IN OCTOBER AT 20 A SHARE REPORTED A LOSS FOR ITS THIRD QUARTER ENDED OCT 30 OF 161 MILLION OR 67 CENTS A SHARE AFTER A CHARGE OF 106 MILLION OR 44 CENTS A SHARE FROM THE REDEMPTION OF PREFERRED STOCK RELATED TO THE INITIAL PUBLIC OFFERING BEFORE THE CHARGE THE BOOKSTORE OPERATER HAD A LOSS OF 55 MILLION OR 23 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 66 MILLION OR 34 CENTS A SHARE REVENUE FOR THE QUARTER CLIMBED TO 2938 MILLION FROM 2415 MILLION A YEAR EARLIER SALES FROM THE COMPANY'S EXTRALARGE WELLSTOCKED SUPERSTORES CONTRIBUTED TO 49 OF REVENUE UP FROM 31 9311240076 931124 PRUDENTIAL SECURITIES RATINGS ARE AFFIRMED BY S&P AFTER SEC PACT NEW YORK STANDARD & POOR'S CORP AFFIRMED THE FINANCIAL PROGRAM RATINGS FOR PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES GROUP AND ITS PRUDENTIAL SECURITIES INC UNIT S&P ADDED THAT ITS LONGTERM OUTLOOK FOR THE FIRM REMAINS STABLE THE RATINGS AGENCY'S ANNOUNCEMENT FOLLOWS THE AGREEMENT BETWEEN PRUDENTIAL SECURITIES AND THE SECURITIES AND EXCHANGE COMMISSION REGARDING ALLEGEDLY IMPROPER SALES OF LIMITED PARTNERSHIPS IN THE 1980S UNDER THE TERMS OF THE SETTLEMENT PRUDENTIAL SECURITIES HAS AGREED TO PAY AT LEAST 330 MILLION TO SETTLE THE CLAIMS S&P MAINTAINED RATINGS FOR PRUDENTIAL SECURITIES GROUP INC AT SINGLEA/SINGLEA1 AND OF THE COMPANY'S BROKER AND DEALER UNIT PRUDENTIAL SECURITIES INC AT SINGLEAPLUS/SINGLEA1 9311240075 931124 INTERNATIONAL VW UNION OFFICIALS SAY NO PROGRESS MADE IN TALKS FRANKFURT NEGOTIATIONS HAVE REACHED A MAKEORBREAK STAGE BETWEEN VOLKSWAGEN AG AND ITS UNIONS OVER VW'S CONTROVERSIAL PLAN FOR A FOURDAY WORKWEEK UNION LEADERS SAID VW'S LABOR TALKS WENT INTO THEIR THIRD ROUND YESTERDAY AFTER NEGOTIATIONS BROKE OFF LAST FRIDAY WITHOUT RESULT BUT AGAIN YESTERDAY THEY WERE STYMIED THE COMPANY GERMANY'S LARGEST AUTO MAKER WANTS TO CUT WORKING HOURS 20 AND REDUCE PAY BY A COMMENSURATE 20 IF IT CANNOT SUCCEED IN LOWERING WAGE COSTS BY REDUCING THE NUMBER OF HOURS THE COMPANY HAS THREATENED TO RESORT TO MASSIVE LAYOFFS OFFICIALS FROM THE IG METALL TRADE UNION SPEAKING DURING A BREAK IN THE TALKS SAID THAT DISCUSSIONS HAVE REACHED A CRITICAL STAGE EITHER THE TWO SIDES WILL BRIDGE THEIR DIFFERENCES OR DECLARE THAT THEIR DIFFERENCES ARE INSURMOUNTABLE ON FRIDAY WHEN VW'S SUPERVISORY BOARD MEETS ONE OF THE POINTS ON THE AGENDA WILL BE PROGRESS TOWARD A FOURDAY WORKWEEK AND CUTTING LABOR COSTS OTHER ITEMS ON THE BOARD'S AGENDA FOR FRIDAY ARE THE RESCUE PLAN FOR VW'S TROUBLED SPANISH UNIT SEAT SA WHICH IS EXPECTED TO LOSE 125 BILLION MARKS 734 MILLION IN 1993 AS WELL AS FURTHER GROUPWIDE REDUCTIONS IN INVESTMENT PLANS OVER THE NEXT FIVE YEARS 9311240074 931124 BUSINESS BRIEF HICKS MUSE & CO ACCORD IS REACHED TO BUY MAKER OF WESTERN JEWELRY HICKS MUSE & CO SAID IT AGREED TO PURCHASE CLOSELY HELD MONTANA SILVERSMITHS TO EXPAND THE LINE OF WESTERN WEAR OFFERED BY HAT BRANDS INC WHICH THE PRIVATE INVESTMENT FIRM MAY CONSIDER TAKING PUBLIC NEXT YEAR TERMS WEREN'T DISCLOSED HAT BRANDS THE NATION'S LARGEST MAKER AND MARKETER OF HEADWEAR WAS ACQUIRED BY DALLASBASED HICKS MUSE LAST YEAR MONTANA SILVERSMITHS BASED IN COLUMBUS MONT EXPECTS REVENUE THIS YEAR OF MORE THAN 25 MILLION JOHN R MUSE MANAGING DIRECTOR OF HICKS MUSE SAID MONTANA SILVERSMITHS IS EXTREMELY PROFITABLE FASTGROWING AND DOMINANT IN ITS NICHE WITH 60 OF THE MARKET IN WESTERN JEWELRY AND ACCESSORIES SUCH AS BELT BUCKLES 9311240073 931124 FINANCING BUSINESS ECOSCIENCE CORP ECOSCIENCE CORP WORCESTER MASS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A PUBLIC OFFERING OF AS MANY AS 23 MILLION COMMON SHARES INCLUDING AS MANY AS 300000 SHARES TO BE SOLD BY CERTAIN SHAREHOLDERS ECOSCIENCE DEVELOPS BIOPESTICIDES UNDERWRITERS ARE LED BY OPPENHEIMER & CO AND PRUDENTIAL SECURITIES INC 9311240072 931124 WHAT'S NEWS BUSINESS AND FINANCE WARNERLAMBERT SAID IT WILL TAKE A 468 MILLION PRETAX CHARGE IN THE FOURTH QUARTER FOR A RESTRUCTURING THAT INCLUDES ELIMINATING 2800 JOBS OR ABOUT 8 OF ITS WORK FORCE OVER A FEW YEARS THE DRUG MAKER'S PLAN INCLUDES CLOSING SEVEN MANUFACTURING FACILITIES WORLDWIDE AND STREAMLINING ITS SALES FORCE LOCKHEED AND MCDONNELL DOUGLAS TRIPPED UP EACH OTHER'S BIG FOREIGN DEALS FOR FIGHTER JETS LOCKHEED CONVINCED ISRAEL TO RECONSIDER ITS IMPENDING 18 BILLION PURCHASE OF 20 MCDONNELL FIGHTERS WHILE MCDONNELL GUMMED UP A TENTATIVE 890 MILLION SALE OF 18 LOCKHEED JETS TO SINGAPORE TOP TRADE OFFICIALS FROM THE US AND THE EUROPEAN COMMUNITY REPORTED PROGRESS IN NARROWING DIFFERENCES IN WORLD TRADE TALKS BUT SOME ISSUES THAT HAVE SURFACED COULD MAKE IT TOUGHER TO SELL A DEAL TO CONGRESS CLINTON'S INTERVENTION IN AMERICAN AIR'S STRIKE UPSET SOME CORPORATE EXECUTIVES WHO COMPLAINED THAT HIS CAJOLING SO EARLY IN THE STRIKE BODES ILL FOR FUTURE LABOR TALKS IN GENERAL AMERICAN AIR SAID 80 OF ITS FLIGHTS WOULD BE OPERATING TODAY BUT SEVERAL UNIONS AT UNITED PLAN A WORK SLOWDOWN BECAUSE UNITED IS CONSIDERING CUTS THAT THREATEN THOUSANDS OF JOBS OIL PRICES PLUNGED AS OPEC'S OIL MINISTERS DEFERRED DISCUSSION OF THEIR OVERSUPPLY PROBLEM UNTIL TODAY EVEN AS FORMAL OPEC TALKS BEGAN SKEPTICISM MOUNTED THAT THE MINISTERS WILL BE ABLE TO END THE OIL GLUT JANUARY CRUDE FELL 47 CENTS A BARREL TO 1663 BOND PRICES SOARED IN A REBOUND FROM RECENT DEPRESSED LEVELS AND STOCK PRICES ROSE THE TREASURY'S 30YEAR ISSUE GAINED MORE THAN A POINT WHILE ITS YIELD FELL TO 631 THE BANKREGULATORY FUNCTIONS OF FOUR AGENCIES WOULD BE CONSOLIDATED INTO A SINGLE FEDERAL BANKING COMMISSION UNDER A WHITE HOUSE PROPOSAL GENERAL MOTORS ARRANGED TO SELL SOME ADDITIONAL PARTSMAKING UNITS CONTINUING AN EFFICIENCY DRIVE THAT IS STARTING TO PAY OFF BUT IS ALSO ANGERING THE UNITED AUTO WORKERS UNION VWCOMMISSIONED AUDITORS ARE EXPECTED TO REPORT THEY FOUND NO PROOF THAT J IGNACIO LOPEZ DE ARRIORTUA FED ANY OF GM'S SECRETS TO THE GERMAN CAR MAKER PEOPLE CLOSE TO VW SAID AMOCO WAS ASSESSED 417 MILLION IN DAMAGES AFTER A JURY IN TEXAS FOUND IT VIOLATED AN ACCORD TO SELL SOME WYOMING OIL PROPERTIES FOR 18 MILLION THE BANK OF ENGLAND CUT ITS BASE LENDING RATE TO 55 FROM 6 IN A MOVE TO GIVE CONSUMER CONFIDENCE A BOOST BEFORE THE TREASURY UNVEILS A PACKAGE OF TAX INCREASES NEXT WEEK A BILL TO ALLOW REGIONAL PHONE COMPANIES TO PROVIDE LONGDISTANCE PHONEEQUIPMENT MANUFACTURING AND ELECTRONICINFORMATION SERVICES WAS INTRODUCED BY TWO CONGRESSMEN GEICO WAS ACCUSED BY CURRENT AND FORMER BLACK EMPLOYEES OF DISCRIMINATING AGAINST BLACKS IN THE WRITING OF CAR AND HOMEOWNER'S INSURANCE BONDS LEHMAN BROTHERS TREASURY INDEX 547794 UP 4779 COMMODITIES OIL 1663 A BARREL OFF 47 CENTS DOW JONES FUTURES INDEX 13552 UP 052 SPOT INDEX 12308 UP 011 DOLLAR 10867 YEN UP 024 17020 MARKS OFF 00018 9311240071 931124 BUSINESS BRIEF BRIDGESTONE CORP UNIT IS PLANNING TO PURCHASE TIREMAKING PLANT IN ILLINOIS BRIDGESTONE/FIRESTONE INC SAID IT SIGNED A LETTER OF INTENT TO BUY A TIREMANUFACTURING PLANT IN BLOOMINGTON ILL FROM AMERICA OFF THE ROAD A UNIT OF CLOSELY HELD EDWARDS WARREN TIRE CO BASED IN CONYERS GA TERMS WEREN'T DISCLOSED BRIDGESTONE/FIRESTONE IS A NASHVILLE TENN UNIT OF TOKYOBASED BRIDGESTONE CORP THE FACILITY WHICH HAS ABOUT 300 EMPLOYEES FORMERLY WAS OWNED BY FIRESTONE TIRE & RUBBER CO AND WAS SOLD TO EDWARDS WARREN IN 1987 BEFORE THE 1988 MERGER OF BRIDGESTONE AND FIRESTONE BRIDGESTONE/FIRESTONE MAKES AND MARKETS BRIDGESTONE FIRESTONE DAYTON SIEBERLING PRIVATELABEL AND HOUSEBRAND TIRES AND INDUSTRIAL AND SYNTHETIC RUBBER PRODUCTS IT SAID THE PURCHASE REQUIRES THE COMPLETION OF NORMAL DUEDILIGENCE INVESTIGATIONS BY BOTH COMPANIES 9311240070 931124 BUSINESS BRIEF PHILLIPSVAN HEUSEN CORP NET FOR FISCAL THIRD QUARTER ROSE 12 TO 245 MILLION APPAREL MAKER PHILLIPSVAN HEUSEN CORP REPORTED A 12 RISE IN NET INCOME FOR ITS FISCAL THIRD QUARTER AND SAID IT SEES SIGNS OF AN IMPROVING FALL MARKET THE NEW YORK COMPANY SAID ITS NET ROSE TO 245 MILLION OR 91 CENTS A SHARE FOR THE QUARTER ENDED OCT 31 FROM A YEAREARLIER 219 MILLION OR 81 CENTS A SHARE SALES ROSE 11 TO 3574 MILLION FROM 3223 MILLION THE FALL SELLING SEASON HAS SHOWN AN IMPROVEMENT OVER THE SUMMER DOLDRUMS SAID BRUCE J KLATSKY CHIEF EXECUTIVE IN THE APPAREL CATEGORY HE ADDED A SEVERE WEAKNESS IN DRESS SHIRTS WAS OFFSET BY STRONGER SALES OF SPORT SHIRTS HE ALSO SAID SALES OF FOOTWEAR IMPROVED ON ADDITIONAL OFFERINGS IN ITS OUTDOOR LINE THE COMPANY SAID IMPROVEMENTS IN ITS COMPUTERIZED MERCHANDISEORDERING SYSTEM SHOULD HAVE A POSITIVE IMPACT ON FOURTHQUARTER SALES AND PROFIT MARGINS 9311240069 931124 SACRIFICE HAS LIMITS SAY THE WORKERS AT A FRENCH FACTORY THEY VOTE NO TO SAVING JOBS AT THE EXPENSE OF WAGES QUAINT NOTIONS DESTROYED BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL SAINTCOSMEENVAIRAIS FRANCE FOR MORE THAN HALF A CENTURY THE FATE OF THIS VILLAGE AND ITS 2000 INHABITANTS HAS BEEN IN THE HANDS OF THE GLEAMING WHITE SIMMONDS FACTORY BEHIND THE CROOKED STONE CHURCH WHEN SIMMONDS COUGHS EVERYONE IN THE VILLAGE DIES SAYS PIERRE VAUTERIN ITS GENERAL DIRECTOR THE PLANT WHICH IS FRENCH DESPITE ITS ENGLISHSOUNDING NAME MAKES METAL PARTS FOR THE AUTO AND AEROSPACE INDUSTRIES AND EMPLOYS TWOTHIRDS OF THE VILLAGE'S WORKING POPULATION UNTIL THE CURRENT RECESSION IT HAD NEVER COUGHED BUT AFTER TWO YEARS OF DEBILITATING LOSSES THE COMPANY DECIDED TO TAKE DRASTIC ACTION SO IN LINE WITH A GROWING TREND IN EUROPE IT GAVE ITS WORKERS A CHOICE IT WOULD LAY OFF 150 PEOPLE ONEQUARTER OF THE WORK FORCE OR REDUCE THE NUMBER OF HOURS EVERYONE WORKS CUT PAY AND SAVE 40 OF THE JOBS FIRING 110 PEOPLE TO MANAGEMENT'S ASTONISHMENT THE WORKERS VOTED IN A SECRET BALLOT THIS MONTH TO CUT ALL 150 JOBS THE FIRST PINK SLIPS ARE DUE TO ARRIVE IN EARLY DECEMBER AND WHILE THE WORKERS DON'T YET KNOW WHO WILL BE FIRED ONE THING IS CERTAIN IF IT ISN'T ONE OF YOUR NEIGHBORS IT WILL BE YOU AT A STROKE SAINTCOSMEENVAIRAIS BLEW APART NOT ONLY QUAINT NOTIONS ABOUT WORKER SOLIDARITY BUT ALSO QUITE POSSIBLY ITSELF THIS PLACE IS DYING OF LIES AND JEALOUSY YOU CAN'T TRUST ANYONE GROWLS ANDREE RIBES A PENSIONER WHO WORKED AT SIMMONDS FROM ITS OPENING IN 1938 TO 1948 SO FAR THERE HAVEN'T BEEN ANY FISTFIGHTS BUT THEY'LL COME THE 53TO47 VOTE IS AN EYEOPENER FOR FRANCE WHERE THE IDEA OF WORKSHARING IS IN VOGUE AND BEING ENCOURAGED BY THE GOVERNMENT BUT THE DECISION AND ITS CONSEQUENCES ARE SO PAINFUL OR SHAMEFUL THAT MOST LOCALS HERE ARE LOATH TO DISCUSS THEM THOSE WHO DO TALK TEND TO AGREE WITH ELISABETH RAUX WHO WORKS IN A BANK ON THE MAIN STREET RUE NATIONALE IT'S EASY TO TALK ABOUT MAKING SACRIFICES SHE SAYS GRIMLY SO LONG AS IT'S NOT YOU WHO HAS TO MAKE THEM TO VISIT SAINTCOSMEENVAIRAIS IS TO WITNESS HOW BLEAK THE MOOD HAS BECOME IN A PART OF FRANCE JUST 150 MILES WEST OF PARISIAN GLITZ IN THE FRENCH CAPITAL PRIME MINISTER EDOUARD BALLADUR PREDICTS IMMINENT ECONOMIC RECOVERY AND URGES PEOPLE TO SPEND MORE TO MAKE HIS PREDICTION COME TRUE BUT IN THE VILLAGE THREE OF THE DOZEN SHOPS HAVE SHUT DOWN RECENTLY AND BUSINESS IS SO BAD AT THE LOCAL BAR LE VAIRAIS THAT IT OFTEN CLOSES AT 8 PM FOR LACK OF CUSTOMERS INDUSTRY IS SPARSE IN THE REGION ONCE MAINLY AGRICULTURAL AND WORKERS ARE BEING FIRED AT THE HANDFUL OF BIG FACTORIES WITHIN 50 MILES IF YOU GET OUT OF ONE CRISIS YOU JUST FALL INTO THE NEXT LAMENTS DOMINIC JAFFRE THE MANAGER OF LE VAIRAIS ONE LUNCHTIME HE STOPS POURING A GLASS OF WINE FOR ONE OF HIS TWO CUSTOMERS TO WAVE AWAY A SALESMAN WHO IS PITCHING A NEW DETERGENT WE DON'T DO ENOUGH BUSINESS TO BE ABLE TO AFFORD IT EVEN IF WE WANTED IT MR JAFFRE SAYS WITH A SHRUG AS THE SALESMAN PICKS UP HIS SAMPLES AND LEAVES THE CURRENT SLUMP MANY FEAR IS MILD COMPARED WITH THE PROSPECTS FOLLOWING THE DIVISIVE BALLOT UNDER THE GENEROUS FRENCH WELFARE SYSTEM THOSE WHO ARE FIRED CAN EXPECT SOME SEVERANCE PAY AND 18 MONTHS OF UNEMPLOYMENT BENEFITS BUT AFTER THAT IF THEY HAVEN'T FOUND A JOB IT'S ON TO WELFARE HANDOUTS WHICH AT MOST WOULD PROVIDE ABOUT A QUARTER OF THE INCOME THEY CURRENTLY RECEIVE MOST EXPECT MORE STORE CLOSURES HOUSE REPOSSESSIONS AND RISING TENSION IT WILL RIP THE TISSUE OF THE VILLAGE AND THE REGION PREDICTS THIERRY DIDIER WHO WORKS AT THE PLANT'S RESEARCH DEPARTMENT AND VOTED IN FAVOR OF A PAY CUT THE RIPPING MAY ALREADY HAVE STARTED ON THE DAY THE VOTE RESULTS WERE ANNOUNCED SAYS PHILIPPE BREUX PEOPLE TOLD ME THEY WOULD BREAK MY NECK MR BREUX REPRESENTS THE COMMUNIST LABOR UNION AT THE PLANT WHICH ACTIVELY CAMPAIGNED FOR THE FIRING OPTION COMPLAINING ABOUT MANAGEMENT TACTICS IT CLAIMED THAT PEOPLE WOULD EVENTUALLY LOSE THEIR JOBS ANYWAY AND SO IT WAS BETTER TO KEEP THE MONEY MANAGEMENT HAD PROPOSED THAT THE WORKWEEK BE CUT TO 35 HOURS FROM 39 WITH AN AVERAGE 9 REDUCTION IN PAY BUT MR BREUX ARGUES THE CHOICE OF SHORTER HOURS OR SAVING JOBS WAS MORE LIKE RUSSIAN ROULETTE THAN A REAL CHOICE THE PEOPLE WHO VOTED FOR JOB CUTS WERE JUST TEMPTING FATE HE SAYS THEY WERE SAYING MAYBE IT WON'T BE ME WHO SUFFERS AND HE ADDS PEOPLE WOULD HAVE LIKED TO SHOW SOLIDARITY AND VOTE FOR A 35HOUR WEEK BUT THEY JUST DIDN'T HAVE THE MEANS TO DO SO SIMMONDS IS A REGIONAL SHOWCASE THAT LONG OFFERED HIGHER PAY TWICEYEARLY RAISES AND BETTER PERKS THAN THE OTHER FACTORIES NEARBY AVERAGE NET PAY IS STILL JUST OVER 1000 PER MONTH OR ABOUT 25 ABOVE THE MINIMUM WAGE AFTER TAXES LIKE MANY LOCALS MARGUERITE LEGER A FRAIL 83YEAROLD FONDLY REMEMBERS SIMMONDS'S 50TH ANNIVERSARY IN 1988 WHEN EVERYONE WAS INVITED TO A BUFFET DINNER AT THE VILLAGE HALL AND GIVEN A SPECIAL COMMEMORATIVE KEY RING PEOPLE HAD IT TOO GOOD THEY WERE TOO HAPPY MRS LEGER SAYS NOW THEY ARE WEEPING OF THE PLANT'S OTHER TWO UNIONS BESIDES THE COMMUNIST GROUP ONE SUPPORTED SHORTER WORKING HOURS WHILE THE OTHER LEFT THE DECISION TO INDIVIDUAL CONSCIENCESAND POCKETBOOKS AND DESPITE THE THREATS AGAINST MR BREUX WHICH HE DISMISSES AS MERE TALK SMOLDERING RESENTMENT SEEMS MORE TYPICAL OF THE VILLAGE MOOD THAN UGLY OUTBURSTS INDEED ONLY ONETHIRD OF THE WORK FORCE BOTHERED TO SHOW UP FOR A PUBLIC MEETING HELD BEFORE THE VOTE TO AIR THE VARIOUS ARGUMENTS FOR AND AGAINST THAT PROBABLY REFLECTS THE LEVEL OF RESIGNATION HERE BUT IT IS ALSO TYPICAL OF A VILLAGE THAT CHERISHES PRIVACY LOCAL STOREKEEPERS COMPLAIN THAT SOME VILLAGERS SHOP FOR BIG ITEMS IN OTHER TOWNS SO THEIR NEIGHBORS WON'T KNOW WHAT THEY HAVE BOUGHT SIMMONDS MAY HAVE BROUGHT SOME OF ITS WOES ON ITSELF FOUR TOP MANAGERS RETIRED JUST BEFORE HARD TIMES ARRIVED BUT NOT BEFORE MAKING SOME BIG INVESTMENTS INCLUDING ONE IN PORTUGAL THAT ARE NOW SEEN AS STRATEGIC ERRORS MR VAUTERIN TOOK OVER AS GENERAL DIRECTOR ONE YEAR AGO IN THE MIDDLE OF A SALES SLUMP REVENUE HAS DROPPED 40 IN TWO YEARS AND IMMEDIATELY SAW THE NEED TO PARE COSTS SOME WORKERS HAVE ALREADY MADE SACRIFICES IN JANUARY 110 POSITIONS WERE CUT BUT ONLY FIVE PEOPLE LOST THEIR JOBS BECAUSE OTHERS TOOK EARLY RETIREMENT OR AGREED TO SHARE THEIR WORK FRANCOISE DUPONT FOR ONE VOLUNTEERED TO GO PARTTIME TO HELP KEEP SOME OF HER COLLEAGUES IN WORK SHE NOW ALTERNATES BETWEEN JOBS IN THE RESEARCH DEPARTMENT AND AT THE SWITCHBOARD WHILE HER HUSBAND DOMINIC A LATHE OPERATOR CONTINUES TO WORK FULL TIME ON THE SHOP FLOOR I DID IT TO TRY TO LIMIT THE CANCER SHE EXPLAINS IN THIS MONTH'S BALLOT SHE VOTED IN FAVOR OF CUTTING WORKING HOURS AND PAY BUT HER SOLIDARITY GOES ONLY SO FAR IF MY HUSBAND WERE THE ONLY ONE OF US TO WORK WE WOULD HAVE THOUGHT DIFFERENTLY SHE SAYS THE DUPONTS HAVE TWO CHILDREN AND A MORTGAGE THIRTYFIVE HOURS WOULD HAVE BEEN THE LIMIT MRS DUPONT SAYS ENOUGH IS ENOUGH WHILE THEY WAIT ANXIOUSLY TO SEE WHO WILL BE FIRED THE VILLAGERS ARE TRYING TO AVOID RAISING THE TEMPERATURE BY SPREADING BLAME UNEMPLOYMENT IS A WOUND THAT WILL AFFLICT US ALL WARNS THE TOWN'S PRIEST BERNARD BOUSSARD HE WORRIES PARTICULARLY ABOUT THE DEMORALIZING EFFECT ON LOCAL YOUTH THE YOUNG ARE FILLED WITH PESSIMISM HE SAYS THEIR FUTURE HAS CLOUDED OVER AND WORSE MAY COME MR VAUTERIN THE GENERAL DIRECTOR SAYS THE COMPANY'S TWO CUSTOMERS THE AUTO AND AEROSPACE INDUSTRIES MAY NOT RECOVER ANYTIME SOON THEY ARE NOT ONLY CUTTING BACK PRODUCTION THEMSELVES BUT ARE ALSO REDUCING INVENTORIES THAT IS BAD NEWS FOR SIMMONDS AND FOR SAINTCOSMEENVAIRAIS WE LIVED TOO WELL SAYS MRS RAUX THE BANKER HER VOICE TREMBLING NOW WE'LL JUST HAVE TO GO BACKWARD 9311240068 931124 BUSINESS BRIEF SAVIN CORP REORGANIZATION PLAN WINS CONFIRMATION FROM COURT SAVIN CORP SAID ITS REORGANIZATION PLAN UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE WAS CONFIRMED BY FEDERAL BANKRUPTCY COURT IN NEW YORK THE PLAN WAS JOINTLY PROPOSED WITH A COMMITTEE OF UNSECURED CREDITORS AND WAS ACCEPTED BY 93 OF CREDITORS VOTING ON THE PLAN SAID WILLIAM R KREHBIEL CHIEF EXECUTIVE OFFICER OF SAVIN STAMFORD CONN UNDER THE PLAN 80 OF THE REORGANIZED COMPANY'S VOTING STOCK WILL BE ISSUED TO A GROUP OF ITS MAJOR CLAIMANTS THAT INCLUDES HCS TECHNOLOGY NV SAVIN'S CURRENT MAJORITY SHAREHOLDER THE REMAINING VOTING STOCK WILL BE DISTRIBUTED TO OTHER UNSECURED CREDITORS WHOSE CLAIMS ARE ALLOWED BY THE COURT EXISTING STOCK WILL BE CANCELED SAVIN A MARKETER OF COPIERS AND OTHER PRODUCTS SAID IT EXPECTS TO EMERGE FROM CHAPTER 11 PROTECTION BY EARLY DECEMBER THE REORGANIZED COMPANY WILL HAVE 14 MILLION OF DEBT SAVIN SAID 9311240067 931124 BUSINESS BRIEF SMITH INTERNATIONAL INC FINES TOTALLING 125 MILLION SETTLE PRICEFIXING CHARGES TWO OILFIELD SERVICE CONCERNS AGREED TO PAY FINES TOTALLING 125 MILLION TO SETTLE PRICEFIXING CHARGES BROUGHT BY THE US DEPARTMENT OF JUSTICE HOUSTONBASED SMITH INTERNATIONAL INC SAID IT AGREED TO PAY 675000 AND CAMCO INTERNATIONAL INC A UNIT OF PEARSON PLC OF THE UK WILL PAY 575000 THE OILFIELD SERVICE COMPANIES WERE INDICTED BY A GRAND JURY LAST MONTH AND ACCUSED BY THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION OF CONSPIRING WITH OTHER MANUFACTURERS TO RAISE THE PRICE OF ROCK BITS USED ON OILFIELD DRILLING RIGS YESTERDAY BOTH CAMCO AND SMITH INTERNATIONAL SAID THAT THE COSTS OF CONTINUING THE LITIGATION WOULD BE CONSIDERABLY MORE THAN THEIR FINES AT THE TIME OF THE INDICTMENT CAMCO AND SMITH INTERNATIONAL SAID THEY WOULD EACH VIGOROUSLY FIGHT THE CHARGE SMITH SAID IT HAD CONSISTENTLY DENIED THE ALLEGATION THE COMPANIES SAID THE SETTLEMENTS END THE JUSTICE DEPARTMENT'S THREEYEAR INVESTIGATON INTO THE DRILLBIT INDUSTRY 9311240066 931124 BIG DRUG FIRM TO ELIMINATE 8 OF WORK FORCE WARNERLAMBERT CO PLANS TO TAKE PRETAX CHARGE TOTALING 468 MILLION BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MORRIS PLAINS NJ WARNERLAMBERT CO SAID IT WILL TAKE A 468 MILLION PRETAX CHARGE IN THE FOURTH QUARTER FOR A RESTRUCTURING THAT INCLUDES ELIMINATING 2800 JOBS OR ABOUT 8 OF ITS WORK FORCE OVER THE NEXT FEW YEARS THE RESTRUCTURING IS THE COMPANY'S SECOND IN ABOUT AS MANY YEARS AND IS THE LATEST IN A WAVE OF COSTCUTTING BY THE PHARMACEUTICAL INDUSTRY IN THE PAST YEAR THE DRUG INDUSTRY HAS ANNOUNCED IT WILL ELIMINATE ABOUT 30000 JOBS WORLDWIDE ACCORDING TO THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION WARNERLAMBERT SAID THE CHARGE AMOUNTS TO 327 MILLION OR 243 A SHARE AFTER TAXES THE RESTRUCTURING WILL INCLUDE CLOSING SEVEN MANUFACTURING FACILITIES WORLDWIDE AND STREAMLINING THE SALES FORCE ACCORDING TO THE COMPANY EXCEPT TO IDENTIFY A CONFECTIONERY PLANT IN PUERTO RICO WARNERLAMBERT WOULDN'T SAY WHICH PLANTS ARE TARGETED FOR CLOSURE OF 2800 JOBS TO BE CUT 1500 WILL BE ELIMINATED BY THE END OF 1994 A COMPANY SPOKESMAN SAID ABOUT HALF OF THE 2800 JOBS ELIMINATED WILL BE IN THE US AND 1700 ARE COMING OUT OF PHARMACEUTICAL BUSINESS HE SAID THE SPOKESMAN SAID PERSHARE EARNINGS FOR THE YEAR FROM CONTINUING OPERATIONS ARE EXPECTED TO BE FLAT COMPARED WITH LAST YEAR'S 478 AND NET TO BE DOWN SHARPLY AFTER THE CHARGE THE MEAN ESTIMATE OF ANALYSTS IS 485 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN 1991 THE COMPANY TOOK AN AFTERTAX RESTRUCTURING CHARGE OF 524 MILLION THAT INCLUDED A WORKFORCE REDUCTION OF 2700 OVER SIX YEARS SO FAR ABOUT 1600 OF THOSE POSITIONS HAVE BEEN ELIMINATED A SPOKESMAN SAID THAT ACTION IS EXPECTED TO GENERATE PRETAX COST SAVINGS OF 1 BILLION OVER SEVEN YEARS THE SPOKESMAN SAID IN A STATEMENT MELVIN R GOODES WARNERLAMBERT CHAIRMAN BLAMED RAPID AND PROFOUND CHANGES IN THE MARKETPLACE FOR ITS NEED TO RESTRUCTURE WARNERLAMBERT SHARES WERE UNCHANGED AT 6725 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY RESEARCH AND DEVELOPMENT SPENDING IN 1994 IS LIKELY TO BE LESS THAN THE 470 MILLION TO 475 MILLION ANTICIPATED FOR 1993 THE SPOKESMAN SAID HEMANT SHAH AN INDEPENDENT ANALYST SAID THE RESTRUCTURING ANNOUNCEMENT WASN'T EXPECTED BUT ADDED THAT IT MADE SENSE GIVEN THE INTENSE PRESSURES ON INDUSTRY SALES AND EARNINGS MOREOVER HE SAID MORE RESTRUCTURING ANNOUNCEMENTS MAY BE FORTHCOMING FROM OTHER COMPANIES EVEN THOSE THAT HAVE ALREADY TAKEN SUCH ACTIONS THIS YEAR BECAUSE FOURTHQUARTER RESULTS DON'T APPEAR PROMISING THE ONLY WAY YOU CAN DELIVER EARNINGS IS BY REDUCING EXPENSES UNFORTUNATELY THERE'S ONLY A FINITE AMOUNT OF EXPENSECUTTING YOU CAN DO HE SAID EVENTUALLY YOU HAVE TO GET BACK TO WHAT THEY USED TO DO COME UP WITH NEW DRUGS WHICH ARE MEANINGFULLY BETTER THAN EXISTING DRUGS THE WARNERLAMBERT SPOKESMAN CONFIRMED THAT PRESCRIPTIONS OF ITS ALZHEIMER'S DISEASE DRUG COGNEX TOTALED ABOUT 20000 IN THE MONTH OF OCTOBER REPRESENTING ABOUT 2 MILLION IN SALES HE ADDED THE COMPANY EXPECTS PRESCRIPTIONS TO ACCELERATE THE COMPANY WOULDN'T BE SURPRISED IF 1993 SALES TOTALED ABOUT 30 MILLION AND 1994 SALES TOTALED ABOUT 100 MILLION HE SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER SAID THE COGNEX PRESCRIPTION DATA INDICATE THE DRUG IS OFF TO A FAIRLY GOOD START ADDING THAT IT'S WAY TOO EARLY TO JUDGE THIS DRUG AS A COMMERCIAL SUCCESS OR FAILURE 9311240065 931124 CREDIT RATINGS FOODMAKER INC SAN DIEGO STANDARD & POOR'S CORP SAID IT LOWERED RATINGS ON ABOUT 343 MILLION OF FOODMAKER'S DEBT S&P CITED THE IMPACT OF FOOD POISONINGS AT THE COMPANY'S JACK IN THE BOX RESTAURANTS EARLIER THIS YEAR S&P SAID IT CUT ITS RATING ON FOODMAKER'S 175 MILLION OF 925 SENIOR UNSECURED NOTES DUE 1999 TO SINGLEBPLUS FROM DOUBLEBMINUS THE RATING ON 125 MILLION OF 975 SENIOR SUBORDINATED NOTES DUE 2002 WAS REDUCED TO SINGLEBMINUS FROM SINGLEB AND THE RATING ON 43 MILLION OF 1425 SUBORDINATED NOTES DUE 1998 WAS LOWERED TO SINGLEBMINUS FROM SINGLEB A SPOKESWOMAN FOR FOODMAKER SAID THE COMPANY WAS DISAPPOINTED AND DISMAYED BY THE DOWNGRADES THE SPOKESWOMAN SAID THAT SALES HAVE BEEN RECOVERING AND THAT FOODMAKER IS EXPECTING A CASH INFLOW OF ABOUT 200 MILLION IN JANUARY FROM THE SALE OF ASSETS S&P SAID THAT WHILE THERE HAS BEEN MODEST IMPROVEMENT IN RECENT PERIODS IT COULD BE SOME TIME BEFORE FOODMAKER RETURNS TO HISTORICAL LEVELS OF SALES AND PROFITABILITY 9311240064 931124 AQUANATURAL'S VENTURE IN MEXICO HOUSTON AQUANATURAL CO FORMED A JOINT VENTURE WITH SOCIEDAD ADMINISTRADORA MEXICANA OF MEXICO CITY TO SELL PURIFIED WATER AND ICE IN MEXICO CITY AND THROUGHOUT MEXICO UNDER THE TRADE NAME AQUA PURA AQUANATURAL SAID SMALL STORES IN HIGH RETAILTRAFFIC AREAS WILL PROVIDE THE WATER AND ICE THE WATER ALSO WILL BE SOLD IN 32OUNCE CONTAINERS BY STREET VENDORS NEAR THE STORES THE WATER WILL SELL FOR 80 CENTS A GALLON 9311240063 931124 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL NORTH DAKOTA FARMERS SHAKE THE BAN ON DEDUCTING INTEREST ON PERSONAL TAXES THE 1986 TAX ACT WIPED OUT DEDUCTIONS OF PERSONAL INTEREST COSTS SUCH AS INTEREST ON CREDIT CARDS AN EXPLANATION BY THE STAFF OF CONGRESS'S JOINT TAX COMMITTEE EXTENDED THE BAN TO INTEREST ON OVERDUE PERSONAL INCOME TAXES EVEN IF THE RELEVANT INCOME IS FROM CONDUCTING A BUSINESS AN IRS REGULATION FOLLOWS THAT LEAD BUT IN US COURT IN NORTH DAKOTA JUDGE RICHARD W GOLDBERG HAS VOIDED THE IRS RULE HE SAYS CONGRESS NEVER MEANT TO END DEDUCTIONS OF INTEREST COSTS DERIVED FROM A BUSINESS THE DECISION WAS WON BY DAVID AND VALERIA MILLER THEIR LAWYER GARRY A PEARSON OF GRAND FORKS BELIEVES IT IS THE FIRST DECISION ON THIS ISSUE THE MILLERS SUED FOR A REFUND OF 61709 PLUS INTEREST AFTER THE IRS DENIED THEIR 1988 DEDUCTION ON SCHEDULE F FOR FARM INCOME OF 367332 IN INTEREST ON PAST FEDERAL AND STATE TAX DEFICIENCIES BUT THE COUPLE HAVEN'T WON THE CASE YET THEY STILL MUST PROVE THAT THE EXPENSE STEMMED FROM THEIR FARMING BUSINESS THE GOVERNMENT IS EXPECTED TO APPEAL THE JUDGE'S INVALIDATION OF THE IRS RULE RHODE ISLAND FORGOES HIGHER STATE RATES FOR 1993 AND 17 MILLION THIS STATE LEVIES ITS PERSONAL INCOME TAX AS PIGGYBACK PERCENTAGES OF FILERS' FEDERAL TAXES THUS THE STATE STOOD TO REAP A WINDFALL OF 17 MILLION TO 20 MILLION FOR 1993 UNDER NEW TOP FEDERAL RATES OF 36 AND 396 SET RETROACTIVELY BY THE 1993 TAX ACT BUT STATE TAX OFFICIALS FIGURED NEW PERCENTAGES TO PREVENT A RISE IN 1993 STATE TAXES NOW RHODE ISLAND'S TREASURY WON'T BENEFIT FROM THE FEDERAL TAX INCREASE UNTIL 1994 UPPERINCOME FILERS WILL PAY THE SAME 1993 STATE TAX AS THEY WOULD HAVE BEFORE THE FEDERAL ACT TAX ADMINISTRATOR CLARK SAYS GOV SUNDLUN GOT LAWFIRM OPINIONS SAYING THE STATE COULD ADJUST ITS RATES WITHOUT HOLDING A SPECIAL LEGISLATIVE SESSION TO ENACT A CHANGE BUT THE MOVE WILL DELAY INTO 1994 THE STATE'S PAYMENT OF 6 MILLION IN ADDITIONAL AID PROMISED TO SCHOOLS FORGIVEN DEBTS ON REAL ESTATE GET ADDED MERCY FROM THE 1993 TAX ACT A SOLVENT DEBTOR GENERALLY HAS INCOME EQUAL TO A DEBT CANCELED BY A LENDER BUT THE NEW LAW AIDS INDIVIDUALS WHO OWN TROUBLED BUSINESS REAL ESTATE RATHER THAN PAY A CURRENT TAX WHEN A LENDER FORGIVES PART OF A DEBT THEY MAY ELECT TO REDUCE THEIR DEPRECIABLE COST BASIS IN THE PROPERTY BY THE INCOME AMOUNT THAT DEFERS A TAX UNTIL THEY DISPOSE OF THE PROPERTY AND HELPS MANY PEOPLE TRYING TO RENEGOTIATE DEBTS THAT EXCEED DEPRESSED PROPERTY VALUES SAYS FRED WITT OF STREICH LANG PHOENIX LAWYERS THE ELECTION WHICH IS SUBJECT TO CERTAIN CONDITIONS IS AVAILABLE FOR DISCHARGES OF DEBT BACK TO LAST JAN 1 STILL SEVERAL QUESTIONS AWAIT ANSWERS FROM THE TREASURY WITT NOTES THE MOST URGENT HOW DOES AN INDIVIDUAL MAKE THE ELECTION OTHERS CONCERN DEFINITIONS OF TERMS AND THE TREATMENT OF PARTNERSHIPS A TREASURY OFFICIAL SAYS IT HOPES TO OFFER GUIDANCE BEFORE THE END OF THIS YEAR ON HOW TO MAKE THE ELECTION THE TREASURY SEEKS PUBLIC COMMENTS ON WHICH PRESSING ISSUES IT SHOULD ADDRESS NEXT CHOKE OFF THAT CHECKOFF A REPUBLICAN BILL TO LET RETURN FILERS EARMARK 10 OF THEIR TAXES FOR DEBT REDUCTION AND FORCE SPENDING CUTS WOULD DISRUPT THE BUDGET PROCESS AND DISENFRANCHISE MILLIONS OF PEOPLE WHO DON'T PAY INCOME TAXES THE CLINTON ADMINISTRATION TOLD CONGRESS LAST WEEK SIX TAX PACTS WERE RATIFIED BY THE SENATE THE FIRST SUCH TREATIES WITH MEXICO AND THE CZECH AND SLOVAK REPUBLICS REVISED TREATIES WITH THE NETHERLANDS AND RUSSIA AND A SUPPLEMENT TO THE TREATY WITH BARBADOS BUT THE SENATORS HELD UP ACTION ON A SUPPLEMENT TO THE TREATY WITH ISRAEL WHOSE DUES WON'T DO THE NEW LAW DENIES BUSINESS DEDUCTIONS FOR CLUB DUES AFTER 1993 BUT DOESN'T DEFINE EXACTLY WHAT A CLUB IS THE TREASURY SEEKS PUBLIC COMMENTS ON THAT POINT AND HOPES TO ISSUE GUIDANCE SOON MOST LIKELY EARLY NEXT YEAR THROWN OUT AT HOME BY THE IRS IS A CLAIM BY A BALLPLAYER'S FORMER WIFE DEFERREDPAY RETIREMENT PLANS THAT MEET CERTAIN TERMS QUALIFY FOR BREAKS BESIDES TAX DEFERRAL ONE IS THE QUALIFIED DOMESTIC RELATIONS ORDER OR QDRO IN A DIVORCE IT DIVIDES QUALIFIEDPLAN BENEFITS SO THAT EACH EXSPOUSE IS TAXED ONLY ON WHAT SHE OR HE GETS BUT THINGS AREN'T SO SIMPLE IN THE CASE OF NONQUALIFIED PLANS AS IRS PRIVATE RULING 9340032 TELLS THE EXWIFE OF AN UNIDENTIFIED PROFESSIONAL BASEBALL PLAYER UNDER THEIR DECREE SHE SHARES HIS ACCOUNT IN A NONQUALIFIED PLAN IN WHICH HE AS IS TYPICAL IS AN UNSECURED CREDITOR FORBIDDEN TO ASSIGN PAYOUTS TO OTHERS SHE AGREED TO PAY TAX ON HER SHARE AND TO REPAY HIM IF HE WERE TAXED ON IT THE PLAN TREATED PAYOUTS SHE GOT AS TAXABLE TO HIM AT HIS RATE SO SHE ASKED THE IRS TO TAX HER DIRECTLY AT HER OWN LOWER RATE BUT THE RULING DENIES HER PLEA IT SAYS THE LAW PROVIDES NOTHING LIKE A QDRO FOR NONQUALIFIED PLANS EVEN IF THE DIVORCE COURT SAID THE EXWIFE WAS TAXABLE ITS DECREE WOULDN'T OVERRIDE TAX LAW NOTES FORREST MILDER OF THE BROWN RUDNICK LAW FIRM BOSTON BRIEFS SENATE FINANCE MEMBERS APPROVED A BILL TO MAKE THE SOCIAL SECURITY ADMINISTRATION AN INDEPENDENT AGENCY BUT OMITTED A PROPOSAL TO EASE SOCIAL SECURITY TAXES ON HOUSEHOLD HELP THAT DEFERS NANNYTAX ACTION UNTIL NEXT YEAR ERIC J TODER OF THE CONGRESSIONAL BUDGET OFFICE WAS NAMED DEPUTY ASSISTANT TREASURY SECRETARY FOR TAX ANALYSIS GLEN ARLEN KOHL OF THE LAW FIRM WILSON SONSINI GOODRICH & ROSATI BECOMES THE TAX LEGISLATIVE COUNSEL 9311240062 931124 WHO'S NEWS WMX TECHNOLOGIES INC WMX TECHNOLOGIES INC OAK BROOK ILL JOSEPH M HOLSTEN 41 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF WMX'S NORTH AMERICAN TRASHHAULING BUSINESS KNOWN BY THE PARENT COMPANY'S FORMER NAME OF WASTE MANAGEMENT INC MR HOLSTEN WAS FORMERLY VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER OF WMX'S RUST INTERNATIONAL INC 9311240061 931124 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 BURLINGTON MOTOR HOLDINGS 100 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 1 2003 PRICED AT PAR TO YIELD 115 THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLECPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ESPIRITO SANTO OVERSEAS LTD 100 MILLION OF NONCUMULATIVE PERPETUAL PREFERRED STOCK PRICED AT PAR FOR A 85 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT 25 PER SHARE RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH ESPIRTO SANTO IS A UNIT OF ESPIRITO SANTO GROUP FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE DEC 1 2003 PRICED AT PAR TO YIELD 599 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 11 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FRUIT OF THE LOOM INC 300 MILLION OF NOTES PRICED IN TWO PARTS BY UNDERWRITERS LED BY CS FIRST BOSTON INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 150 MILLION OF NOTES DUE NOV 15 2003 WAS PRICED AS 65S AT 99202 TO YIELD 661 A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 150 MILLION OF DEBENTURES DUE NOV 15 2023 WAS PRICED AS 7375S AT 98628 TO YIELD 749 A SPREAD OF 97 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P PROPERTY TRUST OF AMERICA EIGHT MILLION CUMULATIVE CONVERTIBLE SERIES A PREFERRED SHARES OF BENEFICIAL INTEREST PRICED TO YIELD 7 ACCORDING TO THE COMPANY THE SHARES HAVE A LIQUIDATION PREFERENCE OF 25 A SHARE WITH A CONVERSION PREMIUM OF 15 THE PREFERRED SHARES ARE NONREDEEMABLE FOR 10 YEARS AND MAY BE CONVERTED INTO COMMON STOCK AT ANY TIME AT THE OPTION OF THE HOLDERS THE ANNUAL DIVIDEND WAS SET AT 175 A SHARE THE OFFERING WAS UNDERWRITTEN BY A GROUP LED BY GOLDMAN SACHS & CO AG EDWARDS & SONS INC AND KIDDER PEABODY & CO SOLA GROUP LTD 100 MILLION PROCEEDS OF SENIOR SUBORDINATED NOTES DUE DEC 15 2003 PRICED AS 6S AT 85785 TO YIELD 9625 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 9625 AFTER FIVE YEARS THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SPECIALTY EQUIPMENT COS 185 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 1 2003 PRICED AT PAR TO YIELD 11375 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO UNITED AIRLINES INC 100 MILLION OF MEDIUMTERM NOTES DUE DEC 1 1997 PRICED AS 675S AT 99669 TO YIELD 685 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 185 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY UNITED IS A UNIT OF UAL CORP WHEELINGPITTSBURGH STEEL CORP 325 MILLION OF SENIOR NOTES DUE NOV 15 2003 PRICED AT PAR TO YIELD 9375 SYNDICATE OFFICIALS SAID THE ISSUE NONCALLABLE FOR SEVEN YEARS IS RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH ADVANCED TECHNOLOGY MATERIALS INC INITIAL OFFERING OF 18 MILLION COMMON SHARES PRICED AT 7 EACH THROUGH UNDERWRITERS LED BY NEEDHAM & CO GEON CO 129 MILLION COMMON SHARES PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS KOREA EQUITY FUND INC INITIAL OFFERING OF 84 MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY NOMURA SECURITIES AND PRUDENTIAL SECURITIES INC NORFOLK VA 671 MILLION OF SERIES 1993 WATER REVENUE BONDS PRICED BY A MORGAN STANLEY GROUP YIELDS RANGE FROM 28 IN 1994 TO 563 IN 2023 BONDS DUE IN 19972010 2013 AND 2023 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P UNINSURED BONDS HAVE A SINGLEA1 RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P IBM CREDIT CORP 1 BILLION OF EQUIPMENT LEASE ASSETBACKED CERTIFICATES PRICED AS 455S AT 999375 TO YIELD 4661 THE YIELD REPRESENTS A SPREAD OF 65 BASIS POINTS ABOVE THE TREASURY'S 4125 NOTE OF JUNE 1995 THE ISSUE IBM CREDIT RECEIVABLES LEASE ASSET MASTER TRUST 19931 WAS BACKED BY LEASES ON IBM COMPUTERS AND EQUIPMENT IBM CREDIT IS A WHOLLY OWNED SUBSIDIARY OF INTERNATIONAL BUSINESS MACHINES CORP THE OFFERING IS RATED TRIPLEA BY MOODY'S AND S&P BASED ON A 15 SUBORDINATE CLASS OF CERTIFICATES RETAINED BY IBM CREDIT AND A 1 CASH COLLATERAL ACCOUNT THE ISSUE WAS STRUCTURED WITH A 12 MONTH SCHEDULED AMORTIZATION IN THE FIRST YEAR MONTHLY PRINCIPAL AND INTEREST PAYMENTS BEGIN DEC 15 1993 OLYMPIC FINANCIAL LTD 133 MILLION OF AUTOLOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY KIDDER PEABODY & CO THE SENIOR CLASS WAS RATED TRIPLEA BY MOODY'S AND S&P BASED ON THE 14 SUBORDINATE CLASS AND A 100 INSURANCE GUARANTEE PROVIDED BY THE FINANCIAL GUARANTY INSURANCE CO THE SUBORDINATE CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND S&P BASED ON THE FGIC INSURANCE THE 11438 MILLION OF SENIOR CERTIFICATES WERE PRICED AS 465S AT 99922 TO YIELD 474 A 55 BASIS POINT SPREAD ABOVE THE TREASURY'S 425S OF NOVEMBER 1995 THE 1862 MILLION IN SUBORDINATE CERTIFICATES WERE PRICED AS 475S AT 99873 TO YIELD 487 A 68 BASIS POINT SPREAD ABOVE THE TREASURY'S 425S OF NOVEMBER 1995 BOTH CLASSES PAY MONTHLY BAYERISCHE VEREINSBANK AG GERMANY 100 MILLION SWISS FRANCS OF 4 PUBLIC BONDS DUE JAN 28 1998 VIA BANK VON ERNST & CIE AG FEES 174 CABLE & WIRELESS PLC UK 400 MILLION OF 65 EUROBONDS DUE DEC 16 2003 AT ISSUE PRICE 100195 VIA JP MORGAN SECURITIES LTD REOFFERED AT 9857 TO YIELD 67 A MARGIN OF 73 BASIS POINTS OVER COMPARABLE US TREASURY FEES TWO DAIMLER BENZ NORTH AMERICA CORP GERMAN PARENT 100 MILLION SWISS FRANCS OF 25 PRIVATELY PLACED NOTES DUE JAN 10 2002 AT ISSUE PRICE 99875 WITH EQUITYPURCHASE WARRANTS CARRYING A 25 COUPON AT PAR VIA DEUTSCHE BANK SUISSE EACH NOTE CARRIES 148 WARRANTS TO BUY SHARES IN DAIMLER BENZ AG FROM JAN 11 TO NOV 22 1996 FEES 225 EMPAQUES PONDEROSA SA MEXICO 50 MILLION OF 875 EUROBONDS DUE DEC 6 1996 AT ISSUE AND FIXED REOFFER PRICE 9980 VIA CREDIT LYONNAIS EUROSECURITIES LTD BONDS PRICED TO YIELD 8827 A SPREAD OF 425 BASIS POINTS ABOVE 4375 US TREASURY OF NOVEMBER 1996 GUARANTOR CARTONES PONDEROSA SA DE CV FEES ONE INTEREST IS PAYABLE SEMIANNUALLY FINANCIARA ENERGETICA NACIONAL SA COLOMBIA 100 MILLION OF 6625 EUROBONDS DUE DEC 13 1996 VIA JP MORGAN SECURITIES LTD AT ISSUE AND FIXED REOFFER PRICE 9972 BONDS YIELD A MARGIN OF 215 BASIS POINTS OVER COMPARABLE US TREASURY FEES 0625 INTEREST PAID SEMIANNUALLY GAS ARGENTINO SA ARGENTINA 130 MILLION OF 725 PARTICIPATING EURONOTES DUE DECEMBER 1997 AND 1998 VIA CHEMICAL INVESTMENT BANK LTD AND SAMUEL MONTAGU & CO WITH BANQUE INDOSUEZ AS JOINT LEAD MANAGER INTEREST ON NOTES PAID SEMIANNUALLY AND NOTES ISSUED AT 945283 TO YIELD A MARGIN OF 361 BASIS POINTS OVER US TREASURY DUE JUNE 1998 PRINCIPAL REPAID IN EQUAL AMOUNTS ON 48TH MONTH AND 60TH MONTH NOTES CALLABLE IN 48TH MONTH SUBJECT TO IMPOSITION OF WITHHOLDING TAXES BY THE ARGENTINE GOVERNMENT BESIDES COUPON THE NOTES OFFER ADDITIONAL RETURN FROM PROFIT PARTICIPATION ARRANGEMENT LINKED TO PROFITS OF METROGAS SA PROFIT PARTICIPATION RANGES FROM ZERO TO 25 AND PAYABLE ANNUALLY FEES 1125 HEALTHCARE OPERATORS GROUP 1 PLC UK SPECIALPURPOSE VEHICLE 135 MILLION OF MORTGAGEBACKED STEPUP FLOATINGRATE EURONOTES DUE NOVEMBER 2021 AT ISSUE PRICE PAR VIA SG WARBURG SECURITIES LTD BONDS SECURED ON MORTGAGES ON NURSING AND RESIDENTIAL HOMES IN ENGLAND AND WALES ORIGINIATED BY UCB BANK PLC A SUBSIDIARY OF FRENCH INVESTMENT BANK COMPAGNIE BANCAIRE INTEREST PAID QUARTERLY AT THE THREEMONTH POUND LONDON INTERBANK OFFERED RATE PLUS 05 REOFFERED TO INVESTORS AT 9987 TO YIELD THREEMONTH LIBOR PLUS 53 BASIS POINTS FROM NOVEMBER 2000 COUPON STEPS UP TO THREEMONTH LIBOR PLUS ONE CALLABLE QUARTERLY FROM NOVEMBER 1996 INTEREST PAYMENT DATE AT PAR CLEANUP CALL IF LESS THAN 50 MILLION OF PRINCIPAL AMOUNT OF ISSUE OUTSTANDING AVERAGE EXPECTED LIFE 52 YEARS FEES 038 KOMMUNE KREDIT DENMARK 10 BILLION YEN OF FLOATINGRATE EURONONTES DUE NOV 30 1998 AT ISSUE AND FIXED REOFFER PRICE 103 VIA NIKKO EUROPE PLC FOR FIRST SIX MONTHS INTEREST PAID QUARTERLY AND FLOATS AT 48 BASIS POINTS OVER THREEMONTH LIBOR THEREAFTER INTEREST IS PAID SEMIANNUALLY AND FLOATS AT 48 BASIS POINTS OVER SIXMONTH LIBOR FEES UNDISCLOSED TREASURY CORP OF VICTORIA AUSTRALIAN REGIONAL AGENCY 500 MILLION AUSTRALIAN DOLLARS OF GLOBAL BONDS PRICED AS 65S DUE DEC 15 1998 VIA LEAD UNDERWRITER MERRILL LYNCH INTERNATIONAL LTD THE BONDS ARE ISSUED AND REOFFERED AT 99664 TO YIELD A MARGIN OF 12 BASIS POINTS BELOW THE 12 SEC VIC BONDS OF OCTOBER 1998 THE ISSUE IS GUARANTEED BY THE STATE GOVERNMENT OF VICTORIA THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P FEES 035 UNIAO DE BANCOS BRASILEIROS SA BRAZIL 200 MILLION MARKS OF 825 EUROBONDS DUE JAN 3 1997 AT ISSUE PRICE 1005 VIA COMMERZBANK AG AT THE COMANAGERS' BREAKEVEN PRICE OF 9887 BONDS YIELD 8596 A MARGIN OF 324 BASIS POINTS OVER THE COMPARABLE GERMAN BUND FEES PLUS LISTING FEE TOTAL 18 LESS A SPECIAL FEE FOR LEAD MANAGER OF 017 9311240060 931124 BUSINESS BRIEF TRANSMEDIA NETWORK INC COMPANY BACKS ESTIMATES NET DOUBLED IN ITS 4TH PERIOD TRANSMEDIA NETWORK INC IS COMFORTABLE WITH ESTIMATES THAT PERSHARE EARNINGS FOR ITS FISCAL FOURTH QUARTER BOOSTED BY A ONETIME GAIN MORE THAN DOUBLED FROM A YEAR EARLIER SAID DAVID WEINBERG CHIEF FINANCIAL OFFICER FOR THE FISCAL YEAR TRANSMEDIA IS VERY COMFORTABLE WITH ESTIMATES THAT PERSHARE EARNINGS TOTALED 43 CENTS TO 45 CENTS MR WEINBERG SAID THAT COMPARES WITH 30 CENTS IN FISCAL 1992 PERSHARE FIGURES ARE ADJUSTED TO REFLECT A 3FOR2 STOCK SPLIT PAID IN OCTOBER CONTRIBUTING TO THE FOURTHQUARTER EARNINGS INCREASE WAS 1 MILLION TRANSMEDIA RECEIVED IN LICENSING FEES FROM EUROPE 9311240059 931124 INTERNATIONAL SWEDISH INDUSTRIAL OUTPUT STOCKHOLM SWEDEN'S INDUSTRIAL PRODUCTION ROSE 14 IN SEPTEMBER FROM AUGUST AND WAS UP 28 FROM SEPTEMBER A YEAR EARLIER ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY THE MINING SECTOR WAS THE ONLY INDUSTRIAL AREA REGISTERING A DECLINE IN PRODUCTION IN THE MONTH THE AGENCY SAID 9311240058 931124 CYPRUS AMAX TO CALL DEBT THE MINING COMPANY SAID ABOUT 52 MILLION IN AGGREGATE PRINCIPAL AMOUNT IS OUTSTANDING AND THAT REFINANCING THE DEBT AT CURRENT INTEREST RATES WILL RESULT IN SIGNIFICANT REDUCTION IN INTEREST COSTS CYPRUS SAID THE REDEMPTION PRICE WILL BE 101280 PLUS ACCRUED INTEREST TO THE REDEMPTION DATE OF 1605 FOR EACH 1000 IN PRINCIPAL AMOUNT BANK OF AMERICA GLENDALE CALIF IS THE TRUSTEE FOR THE DEBENTURES 9311240057 931124 ALLIEDSIGNAL ACQUISITION MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC SAID IT COMPLETED ITS ACQUISITION OF THE AIRCRAFT WHEEL AND BRAKEOVERHAUL OPERATIONS OF AIR TREADS INC AN ATLANTA UNIT OF GOODYEAR TIRE & RUBBER CO TERMS WERE NOT DISCLOSED ALLIEDSIGNAL SAID AIR TREADS' BUSINESS WITH 1992 SALES OF ABOUT 22 MILLION COMPLEMENTS ITS AIR LANDING SYSTEMS WHEEL AND BRAKE MANUFACTURING OPERATION ALLIEDSIGNAL HAS INTERESTS IN AEROSPACE AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS 9311240056 931124 BUSINESS BRIEF CAREMARK INTERNATIONAL INC MANAGEDCARE DIVISION SEES 1994 REVENUE GROWTH OF 40 CAREMARK INTERNATIONAL INC WILL SEE 40 REVENUE GROWTH IN ITS MANAGEDCARE SEGMENT IN 1994 THOMAS W HODSON SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE MANAGEDCARE SEGMENT INCLUDES BOTH PHYSICIAN PRACTICES ACQUIRED BY THE NORTHBROOK ILL HEALTHCARE CONCERN AND CAREMARK'S PRESCRIPTION SERVICE DIVISION THE MANAGEDCARE SEGMENT MADE UP ABOUT 43 OF CAREMARK'S REVENUE IN THE FIRST NINE MONTHS OF 1993 THE ENTIRE COMPANY'S ANNUAL REVENUE FOR 1992 WAS 15 BILLION MR HODSON DECLINED TO FORECAST EARNINGS FOR THE MANAGEDCARE SEGMENT OR EARNINGS AND REVENUE FOR THE ENTIRE COMPANY THE OTHER PORTION OF CAREMARK IS ITS PATIENTCARE SEGMENT IN WHICH MR HODSON SAID 1994 REVENUE IS EXPECTED TO FACE MORE PRESSURE AND GROW BY ABOUT 10 9311240055 931124 BUSINESS BRIEF CITY NATIONAL CORP BANKING UNIT PLANS TO CLOSE SIX BRANCHES BY EARLY 1994 CITY NATIONAL CORP SAID ITS CITY NATIONAL BANK UNIT WILL CLOSE SIX OF ITS 22 BRANCHES RESULTING IN A 12 MILLION PRETAX CHARGE IN THE FOURTH QUARTER THAT WILL BE MORE THAN OFFSET BY AN ANTICIPATED 128 MILLION PRETAX GAIN FROM AN ASSET SALE THE BEVERLY HILLS CALIF BANK HOLDING COMPANY SAID IT EXPECTS TO CLOSE THE BRANCHES BY THE END OF 1994'S FIRST QUARTER FRANK PEKNY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE CLOSURES WILL RESULT IN TERMINATION OF 175 OF THE BANK'S 1440 EMPLOYEES HE ALSO SAID CITY NATIONAL EXPECTS FOURTHQUARTER OPERATING PROFIT TO EXCEED THE YEAREARLIER PERIOD'S 888000 HE DECLINED TO ELABORATE THE ANTICIPATED FOURTHQUARTER GAIN STEMS FROM A PREVIOUSLY REPORTED AGREEMENT TO SELL SIX POOLS OF REALESTATE LOANS AND OTHER ASSETS 9311240054 931124 HEARD ON THE STREET AMR COULD GET A LIFT AS IT TRIES TO RECOVER BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL NOW PERHAPS PRESIDENT CLINTON CAN INTERVENE TO LIFT AMR CORP'S STOCK PRICE A DAY AFTER THE PRESIDENT HELPED TO END THE CRIPPLING STRIKE AT AMERICAN AIRLINES THE REACTION ON WALL STREET WAS COLDHEARTED SHARES OF AMR THE AIRLINE'S PARENT DROPPED 3 1/2 TO 65 1/8 THE 5 DECLINE CAME ON VOLUME OF 22 MILLION SHARES NEARLY FIVE TIMES NORMAL VOLUME BUT MAYBE INVESTORS SHOULDN'T BE SO QUICK TO ABANDON AMR EVEN THOUGH THE FORT WORTH TEXAS COMPANY HAS BEEN THWARTED FOR NOW AT REWRITING LABOR CONTRACTS TO ACHIEVE THE PROFITABILITY IT IS SEEKING IT IS LIKELY TO LOOK TO OTHER MEANS TO CUT COSTS SOME ANALYSTS SAY AND IF THE AIRLINE HAS ANY SUCCESS AT ALL WITH THESE ALTERNATIVE BELTTIGHTENING MOVES ITS LOWFLYING SHARES WHICH ARE TRADING AT ABOUT THE SAME LEVEL THEY WERE A YEAR AGO COULD HAVE SOME LIFT IN THEM THAT'S THE BET THOMAS LONGMAN AN AIRLINE ANALYST WITH BEAR STEARNS IS MAKING MR CLINTON'S ACTION IN SETTLING THE STRIKE COULD FORCE THE AIRLINE TO TAKE A COMPLETELY DIFFERENT DIRECTION HE SAYS INDEED IT COULD ACCELERATE DOWNSIZING OF THE AIRLINE THE COMPANY IS PLANNING TO CUT CAPACITY NEXT YEAR BY 4 TO 6 BUT MR LONGMAN SEES THE POSSIBILITY OF GREATER CUTS YOU SEND A MESSAGE TO LABOR THAT WAY AS WELL THIS MILDLY BULLISH OUTLOOK IS INTERESTING BECAUSE IT COMES FROM ONE OF SEVERAL WALL STREET ANALYSTS WHO CONTRIBUTED TO AMR'S STOCK SLUMP YESTERDAY WITH DOWNGRADES OR LOWER EARNINGS ESTIMATES OR BOTH MR LONGMAN FOR HIS PART CHANGED HIS RATING ON AMR TO A HOLD FROM BUY AND LOWERED HIS EARNINGS ESTIMATES ON AMR FOR THIS YEAR AND NEXT HE SAID HE DID SO BECAUSE THE STRIKE WILL NO DOUBT HAVE A SHORTTERM EFFECT ON PROFITS HE IS PROJECTING AN AMR LOSS FOR THIS YEAR OF 35 CENTS A SHARE INSTEAD OF A 150 PROFIT FOR 1994 HE LOWERED HIS ESTIMATE OF NET INCOME TO 575 FROM 625 WHAT HAPPENED AT AMERICAN COULD BE A POSITIVE SIGNAL NOT ONLY FOR AMR BUT OTHER PUBLICLY TRADED AIRLINE COMPANIES SUCH AS UAL PARENT OF UNITED AIRLINES UNITED HAS BEEN CONSIDERING SOME MOVES INCLUDING SELLING OFF FLIGHT KITCHENS SPINNING OFF SHORTHAUL FLIGHTS AND CONTRACTING OUT MAINTENANCE WORK THAT ARE SURE TO FACE OPPOSITION FROM LABOR THE MESSAGE HERE IS NEGOTIATE RATHER THAN CONFRONT MR LONGMAN SAYS THE PRESIDENT'S ACTION MAY FORCE MANAGEMENT TO RETHINK ITS PLANS AND RETURN TO THE BARGAINING TABLE IN THE SHORT RUN YOU COULD GET SOME KIND OF INCREASED SHAREHOLDER VALUE FROM RESTRUCTURING BUT ALSO FROM LACK OF LABOR STRIFE OTHER ANALYSTS WHO LOWERED EARNINGS ESTIMATES ON AMR ARE SIMILARLY HOPEFUL ABOUT THE LONGERTERM OUTLOOK MORGAN STANLEY AIRLINE ANALYST KEVIN MURPHY CUT HIS ESTIMATES ON AMR TO BREAKEVEN FOR THE YEAR FROM A 150 PROFIT BUT HE KEPT HIS BUY RECOMMENDATION THE INCREMENTAL INCREASE TO THE FLIGHT ATTENDANT CONTRACT NEXT YEAR WOULD WORK OUT TO 20 CENTS A SHARE MR MURPHY SAYS THAT'S NOT THE END OF THE WORLD FOR NEXT YEAR IN FACT HE'S PROJECTING A PROFIT OF 8 A SHARE WHICH IS WELL ABOVE OTHER ANALYSTS' PROJECTIONS HE'S FACTORING IN A YEAR OF RELATIVE LABOR PEACE FOR AMERICAN AND HE EXPECTS THAT UNION PROBLEMS AT UAL WILL PUSH PASSENGERS TO BOOK ON AMERICAN INSTEAD OF UNITED AT FIRST BOSTON ANALYST PAUL KAROS SAYS HE HASN'T LOWERED HIS 1993 ESTIMATE FOR AMR YET IT'S BEEN AT 125 BUT I WANTED TO WAIT AND SEE WHAT THE DAMAGE WOULD BE HE SAID ALTHOUGH HE EXPECTS THE COMPANY TO ROUGHLY BREAK EVEN THIS YEAR HE'S MAINTAINING HIS BUY RECOMMENDATION WITH A 12MONTH HORIZON MR KAROS SEES AMR POSTING PROFITS OF 625 A SHARE NEXT YEAR AND 925 IN 1995 AS A GROUP ANALYSTS AREN'T FACTORING IN AN AMERICAN FARE INITIATIVE THAT WAS WIDELY RUMORED TO BE IN THE OFFING TO WOO BACK DISGRUNTLED PASSENGERS AMERICAN'S OFFICIALS ALSO SAY NO SUCH FARE CUTS OR FREQUENTFLIER PROMOTIONS ARE PLANNED FIRST BOSTON'S MR KAROS SAYS HE WOULDN'T BE SURPRISED BY A FARE CUT OF SOME KIND BUT IF WE DO GET ONE IT'LL BE OF SHORT DURATION TWO OR THREE WEEKS HE SAYS BUT I DON'T EXPECT ANOTHER BLOODY WAR SUCH AS THE SUMMER 1992 FARE CUTS SO JUST WHAT WILL AMR DO TO RECOVER FROM THE FLIGHT ATTENDANTS' STRIKE WHICH ANALYSTS SAY COST THE CARRIER ABOUT 100 MILLION AT A NEWS CONFERENCE EXECUTIVE VICE PRESIDENT ROBERT W BAKER REITERATED THE COMPANY'S COSTCUTTING STAND SAYING WE STILL MUST GET THIS AIRLINE TO A COSTCOMPETITIVE LEVEL OR WE'RE NOT GOING TO BE ABLE TO COMPETE IN THIS VERY PRICESENSITIVE MARKETPLACE ONE METHOD AMERICAN HAS DISCUSSED IN THE PAST INVOLVES MAKING ITS EMPLOYEES SHAREHOLDERS OF THE COMPANY SENIOR EXECUTIVES BROUGHT UP THAT POSSIBILITY AGAIN YESTERDAY SUCH AN IDEA HAS ALWAYS BEEN APPEALING TO US SAID DONALD V CARTY AMERICAN'S EXECUTIVE VICE PRESIDENT SHAREHOLDERS AND EMPLOYEES HAVE SIMILAR INTERESTS HE SAID OUR SHAREHOLDERS WANT AN ADEQUATE PROFIT AND WITHOUT AN ADEQUATE PROFIT WE CAN'T BUY AIRPLANES PEOPLE CAN'T GET PROMOTED HE SAYS THUS FAR OBVIOUSLY WE'VE FAILED TO CONVINCE ENOUGH OF OUR EMPLOYEES OF THIS PROBLEM WHAT WILL INEVITABLY CONVINCE OUR EMPLOYEES IS AS THE AIRLINE GETS SMALLER AMR PLANS TO STAY ON ITS PATH OF SHRINKING UNPROFITABLE AIRLINE OPERATIONS AND BEEFING UP ITS NONAIRLINE SUBSIDIARIES A PLAN IT UNVEILED EARLIER THIS YEAR AS ITS COMPETITIVE ANSWER TO STARTUP AIRLINES WITH SHARPLY LOWER LABOR AND OPERATING COSTS TO THAT END AMR HAS BEEN SEGREGATING ITS PROFITABLE NONAIRLINE UNITS INTO A SINGLE CORPORATE ENTITY EARLIER THIS YEAR AMR FORMED SABRE TECHNOLOGY GROUP WHICH PUTS ITS PROFITABLE DATAPROCESSING ARMS UNDER ONE UMBRELLA IN DOING THAT AMR TRANSFERRED CONTROL OF OWNERSHIP OF ITS SABRE TRAVEL INFORMATION NETWORK FROM THE AIRLINE THESE MOVES HAVE SPURRED SPECULATION INSIDE AND OUTSIDE THE AIRLINE THAT AMR WILL SELL OFF SABRE TECHNOLOGY EITHER TO AMR SHAREHOLDERS OR IN A PUBLIC OFFERING AMERICAN WON'T COMMENT ON THE SPECULATION IT DENIED A SUGGESTION IN A LOS ANGELES TIMES COLUMN THAT CHAIRMAN ROBERT L CRANDALL MIGHT TAKE EARLY RETIREMENT UNDER PRESSURE FROM INSTITUTIONAL INVESTORS MEANWHILE THE OUTLOOK FOR AMR'S JUNKRATED BONDS GOT EVEN CLOUDIER BECAUSE OF THE ARBITRATION PROCESS INDUCED BY MR CLINTON'S INTERVENTION WHILE STANDARD & POOR'S SAID IT ISN'T LOOKING TO CHANGE AMR'S SENIOR DEBT RATING THE ARBITRATION MAY POSE AN OBSTACLE FOR AMR'S IN PULLING ITSELF OUT OF SPECULATIVE GRADE SAID PHILIP BAGGALEY VICE PRESIDENT OF S&P'S TRANSPORTATION RATINGS GROUP AT DOUBLEBPLUS AMR IS RATED HIGHER THAN UAL AND DELTA AIR LINES WHICH ARE RATED DOUBLEB BUT THE RATINGS AGENCY IS KEEPING CLOSE WATCH ON AMR AS IT ENTERS NEGOTIATIONS OVER THE NEXT YEAR WITH ITS PILOTS AND MECHANICS WHOSE CONTRACTS ARE LIKELY TO COST A GREAT DEAL MORE THAN THE FLIGHT ATTENDANTS' THERE COULD BE A VERY DAMAGING PILOTS STRIKE OR SOMETHING WHICH WOULD CAUSE US TO LOOK AT THE RATINGS MR BAGGALEY SAID 9311240053 931124 BUSINESS BRIEF WILLCOX & GIBBS INC ELECTRICALPARTS DISTRIBUTOR TO ACQUIRE SUMMERS GROUP WILLCOX & GIBBS INC AGREED TO ACQUIRE SUMMERS GROUP INC ANOTHER DISTRIBUTOR OF ELECTRICAL PARTS AND SUPPLIES FOR AT LEAST 85 MILLION WILLCOX WILL PAY 60 MILLION IN CASH AND 25 MILLION IN THREEYEAR NOTES PLUS ADDITIONAL AMOUNTS DEPENDING ON SUMMERS'S RESULTS FOR 1993 AND 1994 SUBJECT TO A MAXIMUM OF 120 MILLION SUMMERS IS A UNIT OF BTR PLC A BRITISH MANUFACTURING COMPANY THE TRANSACTION IS EXPECTED TO CLOSE ON DEC 3 IN 1992 SUMMERS HAD REVENUE OF 395 MILLION AND NET INCOME OF 6 MILLION FOR THE NINE MONTHS ENDED SEPT 30 WILLCOX HAD SALES OF 4355 MILLION AND NET OF 69 MILLION WILLCOX BASED IN NEW YORK SAID IT IS ALSO CONSIDERING THE ISSUANCE AND SALE OF ADDITIONAL COMMON SHARES TO REXEL SA BOOSTING THE FRENCH ELECTRICALPARTS DISTRIBUTOR'S STAKE TO 40 SHARES OF WILLCOX ROSE 375 CENTS TO 725 IN LATE NEW YORK STOCK EXCHANGE TRADING 9311240052 931124 BUSINESS BRIEF HOUSE OF FABRICS INC LOSS OF 25 MILLION REPORTED FOR THE FISCAL THIRD QUARTER HOUSE OF FABRICS INC SHERMAN OAKS CALIF REPORTED A LOSS OF 25 MILLION OR 182 A SHARE AFTER 227 MILLION OF RESTRUCTURING CHARGES FOR THE FISCAL THIRD QUARTER ENDED OCT 31 THE RETAIL FABRIC CHAIN POSTED NET INCOME OF 758000 OR FIVE CENTS A SHARE A YEAR EARLIER SALES FELL 34 TO 1418 MILLION FROM 1468 MILLION THE ENVIRONMENT FOR THE RETAIL FABRIC INDUSTRY IS DIFFICULT DUE TO THE SLUGGISH ECONOMY AND HIGHLY COMPETITIVE CONDITIONS SAID GARY L LARKINS PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY IS CLOSING ITS SMALL MALL STORES AND OPENING LARGER SUPERSTORES THE CHARGE WAS EQUAL TO 35 MILLION ON A PRETAX BASIS OF WHICH 13 MILLION IS TO COVER PROJECTED LOSSES AND INVENTORY LIQUIDATION OF 105 MALL STORES 22 MILLION IS LARGELY FOR INVENTORY MARKDOWNS 9311240051 931124 BUSINESS BRIEF AMERICAN STORES CO FISCAL 3RDQUARTER NET ROSE BY 5 AFTER NEW TAX RATES AMERICAN STORES CO SAID THE INCREASE IN FEDERAL TAX RATES RESTRICTED FISCAL THIRDQUARTER EARNINGS GROWTH TO A SLIGHT GAIN THE SALT LAKE CITY GROCERYSTORE CHAIN REPORTED EARNINGS OF 454 MILLION OR 64 CENTS A SHARE FOR THE PERIOD ENDED OCT 30 UP 5 FROM 432 MILLION OR 62 CENTS A SHARE IN THE YEARAGO QUARTER WITHOUT THE CHANGE IN THE FEDERAL TAX RATE EARNINGS WOULD HAVE BEEN 519 MILLION OR 73 CENTS A SHARE A 20 RISE FROM YEARAGO RESULTS DEPRESSED BY SLUGGISH ECONOMIC CONDITIONS SALES DECLINED SLIGHTLY TO 453 BILLION FROM 457 BILLION BUT AMERICAN STORES WAS ABLE TO BOOST OPERATING PROFIT TO JUST OVER 3 OF SALES FROM 29 THE YEAR BEFORE MAINLY BECAUSE OF TIGHT EXPENSE CONTROLS FOR THE NINE MONTHS THE COMPANY REPORTED NET INCOME OF 1454 MILLION OR 205 A SHARE UP 29 FROM 1127 MILLION OR 161 A SHARE A YEAR EARLIER THE YEARAGO RESULTS INCLUDED A NONRECURRING CHARGE EQUAL TO 20 CENTS A SHARE REFLECTING A CHANGE IN ACCOUNTING FOR INCOME TAXES 9311240050 931124 TEXAS JOURNAL HEARD IN TEXAS PILGRIM'S PRIDE PLANS TO TAKE WING AFTER SURVIVING A ROASTING IN 1992 BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURG AH THANKSGIVING TIME TO THINK ABOUT PILGRIMS AND POULTRY BUT WE AREN'T TALKING PLYMOUTH ROCK AND TURKEYS WE'RE TALKING LONNIE BO PILGRIM AND HIS CHICKEN COMPANY PILGRIM'S PRIDE AT THIS TIME LAST YEAR PILGRIM'S PRIDE ONE OF THE COUNTRY'S LARGEST CHICKEN PRODUCERS WAS FEELING A BIT LIKE A PLUCKED BIRD IT FELL INTO FINANCIAL TROUBLE AFTER BORROWING HEAVILY TO INCREASE CAPACITY AT HOME AND EXPAND OPERATIONS IN MEXICO FISCAL 1992 RESULTS SHOWED A NET LOSS OF 297 MILLION OR 124 A SHARE THE COMPANY WENT THROUGH A MANAGEMENT SHAKEUP OMITTED STOCK DIVIDENDS FOR TWO QUARTERS AND HAD PROBLEMS RESTRUCTURING A BALANCE SHEET PLAGUED BY DEBT OBLIGATIONS ON WHICH THE COMPANY WAS IN TECHNICAL DEFAULT NOW A YEAR LATER ANALYSTS SAY THE COMPANY IS SHOWING SIGNS OF A TURNAROUND PILGRIM'S FISCAL 1993 EARNINGS RELEASED LAST WEEK SHOWED A STRONG RECOVERY FOR THE YEAR ENDED OCT 2 THE COMPANY REPORTED RECORD NET INCOME OF 21 MILLION OR 76 CENTS A SHARE AT ITS CURRENT SHARE PRICE OF ABOUT 7 PILGRIM'S STOCK TRADES AT JUST 92 TIMES EARNINGS THE COMPANY REINSTATED ITS 15CENTSASHARE QUARTERLY DIVIDEND THIS SUMMER THE DEBT PROBLEM HAS BEEN HELPED BY A 30 MILLION EQUITY INVESTMENT BY ARCHERDANIELSMIDLAND THE AGRIBUSINESS GIANT RECENTLY INCREASED ITS INTEREST TO A 199 STAKE ALL REASON TO CROW SAYS MR PILGRIM THE 65YEAROLD CHIEF EXECUTIVE OF THE COMPANY HE FOUNDED AS A FEED STORE IN 1945 WE'VE SPENT THE MONEY AND PAID THE PRICE AND WE'RE NOW IN POSITION TO TAKE ADVANTAGE OF OUR EXPANSION HE SAYS ANALYSTS ARE ALSO BECOMING MORE OPTIMISTIC THEY'RE IN A TURNAROUND NOW SAYS JOHN BIERBUSSE ANALYST AT AG EDWARDS HE HOLDS A NEUTRAL RATING ON PILGRIM'S PRIDE BUT THAT'S UP FROM A SELL RATING EARLIER THIS YEAR THE COMPANY'S PROSPECTS MAY GET A BOOST FROM THE COUNTRY'S EATING HABITS PERCAPITA CHICKEN CONSUMPTION HAS NEARLY DOUBLED TO 70 POUNDS ANNUALLY IN THE PAST TWO DECADES AT THE CURRENT 5 ANNUAL GROWTH THE COMPANY EXPECTS CONSUMPTION TO JUMP TO 95 POUNDS A YEAR BY 1998 IN MEXICO WHERE PILGRIM'S PRIDE IS THE NO 2 CHICKEN COMPANY WITH MORE THAN 11 OF THE MARKET CONSUMPTION HAS MORE THAN DOUBLED TO 35 POUNDS A YEAR SINCE 1977 AND IS GROWING AT A 6 TO 10 CLIP CHICKEN HOWEVER IS A HIGHVOLUME LOWMARGIN BUSINESS CHICKEN PRODUCERS ARE AT THE MERCY OF THE COMMODITIES MARKET WHERE BROILER PRICE SWINGS WREAK SO MUCH HAVOC ON THE BOTTOM LINE THAT ESTIMATING EARNINGS FOR THESE COMPANIES IS LIKE GUESSING AT THE WEATHER MR BIERBUSSE SAYS A ONECENT CHANGE IN THE COST OF CHICKENS OR IN THEIR SELLING PRICE AT THE SUPERMARKET TRANSLATES INTO A 121 MILLION DIFFERENCE ON PILGRIM'S BOTTOM LINE BUT PILGRIM'S PRIDE IS BEGINNING TO POSITION ITS PRODUCT MORE AS A CONVENIENCE FOOD WHICH IS A MORE PROFITABLE CHICKEN MARKET SAYS MR BIERBUSSE ANALYSTS SAY THE MOVE SHOULD MAKE THE COMPANY LESS SUSCEPTIBLE TO COMMODITY PRICE SWINGS MR BIERBUSSE POINTS OUT THAT CONSUMERS TODAY AREN'T BUYING WHOLE CHICKENS AT THEIR LOCAL SUPERMARKET INSTEAD THEY'RE BUYING ROASTED CHICKEN AT THE DELI COUNTER OR MARINATED AND DEBONED PIECES IN THE MEAT DEPARTMENT ALL OF WHICH COMMAND HIGHER PRICES THAN WHOLE BIRDS TO THAT END PILGRIM'S PRIDE HAS SHIFTED ITS FOCUS TOWARD FURTHERPROCESSED OR VALUEADDED CHICKEN FURTHERPROCESSED CHICKEN PRODUCTS ACCOUNT FOR MORE THAN A QUARTER OF THE COMPANY'S SALES UP FROM LESS THAN 2 THREE DECADES AGO BY 1995 THE COMPANY PROJECTS THE SHARE SHOULD JUMP TO MORE THAN ONETHIRD PILGRIM'S PRIDE NOW HAS THE SECONDLARGEST LINE OF CHICKEN PRODUCTS BEHIND GIANT TYSON FOODS WITH 400 VARIATIONS WE'VE GOT CHICKEN ANY WAY YOU WANT IT SAYS MR PILGRIM WHOSE COMPANY IS THE LARGEST EMPLOYER IN THIS NORTHEAST TEXAS TOWN OF JUST 4000 PILGRIM'S PRIDE HAS ALSO STEPPED UP ITS SALES TO THE FOODSERVICE INDUSTRY AS FASTFOOD POULTRY HAS BECOME INCREASINGLY POPULAR IT SUPPLIES A KENTUCKY FRIED CHICKEN FRANCHISE ON THE WEST COAST AND DALLASAREA BOSTON ROTISSERIE CHICKEN OUTLETS IT'S ALSO A LEADING PROVIDER OF CHICKEN TO WENDY'S AND OTHER FASTFOOD CHAINS ITS SUPERMARKET PACKAGES OF FRESH CHICKEN ARE SOLD PRIMARILY IN THE SOUTHWEST THOUGH IT IS A KEY SUPPLIER TO THE WEST COAST DIVISION OF ALBERTSON'S ITS FROZEN CHICKEN PRODUCTS ARE SOLD NATIONALLY UNDER THE PILGRIM'S PRIDE BANNER PILGRIM'S PRIDE ALSO IS IN MOST MAJOR SUPERMARKETS IN MEXICO CITY MEANTIME THE COMPANY IS WORKING TO GET ITS DEBT UNDER CONTROL FROM 1990 TO 1992 PILGRIM'S PRIDE SPENT 85 MILLION IN MEXICO AND 38 MILLION AT HOME TO INCREASE CAPACITY THE RESULT THOUGH CAPACITY MORE THAN TRIPLED THE HIGHLY LEVERAGED COMPANY FOUND ITSELF UNABLE TO MEET OBLIGATIONS TO SECURED LENDERS EARLIER THIS YEAR THE COMPANY ISSUED 100 MILLION OF SENIOR SUBORDINATED DEBT AND NEGOTIATED A NEW CREDIT LINE WHICH HELPED CLEAN UP ITS BALANCE SHEET THE DEBT ISSUE'S SUCCESS SHOWS INVESTORS THINK THIS COMPANY HAS A SHOT SAYS ROBERT MCMULLAN A VICE PRESIDENT AT DONALDSON LUFKIN & JENRETTE THOUGH THE COMPANY HAS A DEBT LOAD OF 14 TIMES STOCKHOLDER'S EQUITY PILGRIM'S PRIDE MANAGED TO SHRINK ITS DEBT 65 MILLION TO 185 MILLION IN THE PAST 12 MONTHS THROUGH EARNINGS AND CASH FLOW SAYS MONTY K HENDERSON THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER PILGRIM'S PRIDE SHOULD BE ABLE TO TRIM ITS DEBT BY ABOUT 30 MILLION A YEAR BUSINESS FIFTHLARGEST PRODUCER OF CHICKEN PRODUCTS IN THE US SECONDLARGEST IN MEXICO 112 MILLION OR 41 CENTS A SHARE SOMETIMES THE STOCK MARKET DEFIES EXPECTATIONS ABOUT HOW IT WILL REACT TO EARNINGS SURPRISES MEN'S WEARHOUSE HOUSTON REPORTED PERSHARE EARNINGS FOR THE THIRD QUARTER ENDED OCT 31 OF 13 CENTS NEARLY DOUBLE THE YEAREARLIER LEVEL AND TWO CENTS HIGHER THAN ANALYSTS HAD ESTIMATED BUT THE CLOTHIER'S STOCK FELL 17 TO 27 ON THE OTHER HAND SHARES OF AMBER'S STORES A DALLASBASED ARTSANDCRAFTS RETAILER JUMPED MORE THAN 10 TO 525 DESPITE A DROP IN PERSHARE EARNINGS TO ONE CENT FOR THE THIRD QUARTER ENDED OCT 31 FROM 14 CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED TWO CENTS A SHARE VAALCO ENERGY OF HOUSTON WAS THE BIGGEST GAINER LAST WEEK CLIMBING 15 TO 675 THE DOW JONES NEWS SERVICE REPORTED THAT THE OILPRODUCTION COMPANY EXPECTS A FOURTHQUARTER PROFIT LAST YEAR IT HAD A NET LOSS OF 215000 OR THREE CENTS A SHARE VAALCO OFFICIALS ATTRIBUTE THE TURNAROUND PARTLY TO LOWER INTEREST COSTS TEXAS UTILITIES WAS ONE OF THE MOST ACTIVE STOCKS FOR THE WEEK BUT ITS SHARE PRICE ENDED UNCHANGED AT 43125 BLAME IT ON TWO CONTRARY REPORTS EARLY IN THE WEEK A KIDDER PEABODY ANALYST DOWNGRADED THE DALLAS UTILITY CONCERN TO NEUTRAL FROM OUTPERFORM BECAUSE OF CONCERN OVER A RATE CASE INVOLVING ITS COMANCHE PEAK UNIT 2 NUCLEAR PLANT TWO DAYS LATER HOWEVER FITCH INVESTORS SERVICE NEW YORK IN RATING BONDS ISSUED BY A UNIT NOTED THAT TWO RECENT REGULATORY ACTIONS WILL IMPROVE CASH FLOW 9311240049 931124 TEXAS JOURNAL STATE BANK FOR POLLUTIONCONTROL CREDITS GENERATES LOW INTEREST AMONG BUSINESS BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL IT WON'T HAVE MARBLE COLUMNS OR COMPETITIVE INTEREST RATES BUT THE STATE'S NEW BANK FOR POLLUTIONCONTROL CREDITS IS NEARLY READY FOR BUSINESS NOW THE BIG QUESTION IS WILL IT ATTRACT ENOUGH QUALIFIED CUSTOMERS TO SUCCEED AS EARLY AS NEXT WEEK THE TEXAS NATURAL RESOURCES CONSERVATION COMMISSION WILL DECIDE WHETHER TO ACCEPT THE FIRST SEVEN PROSPECTIVE DEPOSITORS OF AIRPOLLUTION CREDITS WITH THAT TEXAS WILL JOIN A A DOZEN STATES THAT MAKE AN OFFICIAL MARKET IN AIR POLLUTION ENABLING COMPANIES THAT CUT EMISSIONS TO SELL CREDITS TO OTHER BUSINESSES THAT WANT TO INCREASE THEIRS BUT IT ISN'T CLEAR WHETHER THE BANK WILL ATTRACT ENOUGH BUYERS AND SELLERS TO CREATE A WORKABLE MARKET SOME COMPANIES SAY THEY WOULD RATHER KEEP THEIR CREDITS FOR POSSIBLE FUTURE USE WHILE OTHERS ARE RELUCTANT TO TRUST THEIR CREDITS TO A BANK RUN BY STATE REGULATORS AND CONFUSION IS WIDESPREAD AMONG PROSPECTIVE CUSTOMERS ABOUT EXACTLY HOW THE BANK WILL OPERATE A LOT OF FIRMS ARE WATCHING THE GUYS OUT IN FRONT TO SEE WHAT HAPPENS TO THEIR CREDITS AND HOW MUCH MONEY THEY GET SAYS ROSALIE DAY AIRQUALITY ECONOMIST AT THE HOUSTONGALVESTON AREA COUNCIL OF GOVERNMENTS THEN THEY'LL DECIDE WHETHER THEY WANT TO GET INVOLVED REGULATORS ARE ALREADY TRYING TO MAKE THE POLLUTIONCREDIT BANK AUTHORIZED IN MARCH BUT ONLY NOW STARTING TO DRAW CUSTOMERS MORE ATTRACTIVE TO DEPOSITORS IT IS PART OF THE STATE'S EFFORTS TO BRING THE SMOGGIEST TEXAS CITIES INTO COMPLIANCE WITH THE FEDERAL CLEAN AIR ACT THAT LAW CAPS NEW INDUSTRIAL POLLUTION IN THE STATE'S FOUR NONATTAINMENT AREAS DALLAS HOUSTON BEAUMONT AND EL PASO THE BANK IS MEANT TO PREVENT ECONOMIC DEVELOPMENT IN THESE CITIES FROM SCREECHING TO A HALT BY ALLOWING NEW POLLUTERS TO BUY CREDITS THE BANK KEEPS A SMALL SHARE OF EACH CREDIT SOLD REDUCING OVERALL EMISSIONS BUT COMPANIES AND CONSULTANTS SAY THE CREDIT PROGRAM IN ITS PRESENT FORM MAY NOT BE ATTRACTIVE ENOUGH TO ENCOURAGE WIDE PARTICIPATION ONE DISINCENTIVE IS THAT RATHER THAN APPRECIATING LIKE CASH DEPOSITS THE POLLUTION CREDITS WILL DEPRECIATE 3 A YEAR AND WILL LOSE ALL THEIR VALUE AFTER FIVE YEARS THAT PROVISION MEANT TO PREVENT COMPANIES FROM SIMPLY SWAPPING THE SAME AMOUNT OF POLLUTION AROUND WAS ADDED TO PLACATE ENVIRONMENTALISTS IT'S ALMOST AS IF THEY DESIGNED THE BANK TO DISCOURAGE TRADING SAYS EMISSIONS CREDITS BROKER JOSH MARGOLIS HEAD OF THE AIRTRADE SERVICES GROUP OF DAMES & MOORE INC A CALIFORNIA CONSULTING FIRM THE FIVEYEAR LIFETIME FOR TEXAS CREDITS IS ONE OF THE SHORTEST IN THE NATION HE ADDS AND RULES ARE FUZZY ON SUCH IMPORTANT ELEMENTS AS HOW TO CALCULATE CREDITS SOME SKEPTICS SAY SELLING CREDITS EXPECTED TO BRING 5000 TO 10000 A TON WILL ALSO BRING COMPANIES UNWANTED SCRUTINY FROM THE TNRCC WHICH MUST VERIFY THAT CREDIT APPLICANTS MADE THE CLAIMED REDUCTIONS MANY OF THESE COMPANIES DON'T TRUST REGULATORY AGENCIES MS DAY SAYS THIS WARINESS MAY HAVE SOME BASIS UNDER CURRENT RULES A COMPANY THAT PIONEERS THE USE OF A POLLUTIONCONTROL DEVICE WILL GET CREDITS BUT IF THE STATE SEEING THAT COMPANY'S SUCCESS LATER MAKES THE EQUIPMENT MANDATORY IT CAN REVOKE THE CREDITS SAYS JAMES E DODDS CHIEF OF THE TNRCC'S MARKETABLEPERMITS SECTION HE ADDS THAT THE AGENCY IS DRAFTING A SAFEHARBOR PROVISION THAT WOULD PROTECT CREDITS OF COMPANIES THAT BUY EQUIPMENT BEFORE IT IS REQUIRED THE PROGRAM ALSO FACES AN IMAGE PROBLEM PROFITING BY SELLING A POLLUTION CREDIT ISN'T GOOD PUBLIC RELATIONS ONE OF THE FIRST TEXAS FACILITIES TO APPLY FOR A CREDIT IS SQUEAMISH ABOUT SELLING IT DUPONT CO WHOSE LA PORTE PLANT CUT POLLUTION BY CLOSING SOME OPERATIONS SAYS IT WILL USE THE CREDIT INTERNALLY OR LET IT EXPIRE WE DON'T WANT TO TAKE ANY ACTIONS THAT MIGHT MAKE IT SEEM THAT WE'RE NOT INTERESTED IN POLLUTION REDUCTION SAYS PLANT ENVIRONMENTAL SUPERVISOR JOHN CAUDILL MOREOVER MANY OF THE STATE'S LARGER POLLUTERS SUCH AS THE REFINERIES THAT LINE THE GULF COAST MAY CHOOSE NOT TO DEPOSIT ANY CREDITS THEY EARN BUT RATHER TO STOCKPILE CREDITS AS PROTECTION AGAINST STRICT POLLUTION REGULATIONS CONSIDER THE DOOMSDAY SCENARIO WHAT IF THEY WANT TO DO SOMETHING THAT WOULD INCREASE EMISSIONS AND CAN'T BUY CREDITS FROM ANYONE ASKS CALVIN COBB WHO HEADS WRIGHT KILLEN & CO A HOUSTONBASED REFINERY CONSULTANT HE ADDS THAT HE THINKS THEY'LL BE RELUCTANT TO SELL CREDITS SOME COMPANIES THAT AREN'T LIKELY TO NEED CREDITS FOR THEMSELVES WELCOME THE OPPORTUNITY TO DEPOSIT THEM IN THE BANK NUTONE INC SPENT 500000 SWITCHING FROM WET PAINT TO POWDER PAINT AT ITS COPPELL MANUFACTURING PLANT LAST YEAR THAT CUT EMISSIONS BY 44 TONS A YEAR SAYS PLANT OPERATIONS MANAGER BOB FITZGERALD THE INVESTMENT HAS ALREADY PAID FOR ITSELF THROUGH INCREASED EFFICIENCY AND REDUCED HAZARDOUSWASTE DISPOSAL CHARGES SO IF THE COMPANY NOW GETS SOME CASH FOR THE CREDITS THAT'S ALL GRAVY HE SAYS TO INCREASE THE APPEAL OF THE CREDITTRADING PROGRAM TNRCC OFFICIALS ARE DRAFTING REGULATIONS THAT WILL MAKE THE EXISTING BANKING RULES MORE PRECISE AND EXPAND HOW CREDITS CAN BE EARNED AND USED MR DODDS SAYS THE CREDITS ARE NOW GOOD ONLY FOR OFFSETTING NEW SOURCES OF POLLUTION BUT UNDER DRAFT REGULATIONS COMPANIES COULD BUY CREDITS INSTEAD OF NEW EQUIPMENT TO COMPLY WITH FEDERAL RULES MANDATING REDUCED NITROGENOXIDE EMISSIONS BY 1995 OCCIDENTAL PETROLEUM'S BAYPORT PLANT 72 TONS A YEAR OF VOLATILE ORGANIC COMPOUNDS OR VOCS IT WANTS TO SELL THE CREDITS REEF INDUSTRIES' MANUFACTURING PLANT 234 TONS A YEAR OF VOCS IT WANTS TO SELL DUPONT'S LA PORTE PLANT NINE TONS A YEAR OF VOCS IT PLANS TO KEEP CREDITS OR LET THEM EXPIRE MITCHELL ENERGY SEVEN TONS A YEAR OF VOCS AND 25 TONS A YEAR OF NITROGEN OXIDES IT DOESN'T KNOW YET IF IT WILL SELL THE CREDITS OR USE THEM INTERNALLY ARCO OIL & GAS'S SILSBY PLANT 486 TONS OF NITROGEN OXIDES IT PROBABLY WILL KEEP THE CREDITS FOR OWN USE OCCIDENTAL PETROLEUM'S ORANGE PLANT ABOUT 300 TONS A YEAR OF VOCS AND 30 TONS A YEAR OF NITROGEN OXIDES IT DOESN'T KNOW YET IF IT WILL SELL CREDITS OR TRANSFER THEM TO ANOTHER OCCIDENTAL PLANT INCA METAL PRODUCTS IN LEWISVILLE 95 TONS A YEAR OF VOCS COMPANY COULDN'T BE REACHED 9311240048 931124 POLITICS & POLICY PASTER TO LEAVE AS CLINTON AIDE AT END OF YEAR BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HARD LABOR OF THE CLINTON WHITE HOUSE HAS CLAIMED ANOTHER VICTIM HOWARD PASTER THE PRESIDENT'S CHIEF CONGRESSIONAL LOBBYIST WILL RETURN TO THE PRIVATE SECTOR AT YEAR END MR PASTER WHO IS 48 YEARS OLD WILL BE THE SECOND TOPLEVEL ADVISER TO DEPART THE WHITE HOUSE FOR PURELY PERSONAL REASONS DEPUTY CHIEF OF STAFF ROY NEEL ALSO 48 PLANS TO LEAVE IN LARGE PART TO SPEND MORE TIME WITH HIS FAMILY IT WAS TIME TO GET MY PRIORITIES BACK IN ORDER MR PASTER SAID IN AN INTERVIEW THE TIME DEMANDS OF THIS JOB MAKE IT IMPOSSIBLE TO TEND TO MY FAMILY BUT UNLIKE MR NEEL WHO IS CONSIDERING TAKING A TOP LOBBYING JOB IN WASHINGTON MR PASTER HAS SAID HE DOESN'T INTEND TO BECOME A PROFESSIONAL LOBBYIST EVEN THOUGH HE WAS ONE FOR MANY YEARS BEFORE JOINING THE WHITE HOUSE IN MANY WAYS MR PASTER HAS HELD THE TOUGHEST STAFF POSITION IN THE WHITE HOUSE HE HAS BEEN AT THE BECKANDCALL OF ALL 535 MEMBERS OF CONGRESS AND AT THE SAME TIME HAS BEEN SUBJECT TO SECONDGUESSING WITHIN THE WHITE HOUSE ITSELF HE WAS BLAMED FOR THE PRESIDENT'S EARLY LOSSES IN CONGRESS SUCH AS THE FAILURE OF THE SOCALLED STIMULUS BILL BUT HE HASN'T GOTTEN MUCH CREDIT FOR MR CLINTON'S MORE RECENT VICTORIES ON THE NORTH AMERICAN FREE TRADE AGREEMENT FOR EXAMPLE HE HAS WORKED ALMOST CONSTANTLY DAY AND NIGHT WEEKDAY AND WEEKEND A TIMETABLE THAT IS MORE COMMON THAN NOT IN THE CLINTON WHITE HOUSE MESSRS PASTER AND NEEL WERE AMONG THE FEW SENIOR AIDES WHO HAD SCHOOLAGE CHILDREN AT HOME THE EARLY DEPARTURE IS PARTICULARLY PAINFUL FOR MR PASTER THE CHIEF LOBBYING JOB WAS THE ONE POSITION HE MOST WANTED IN HIS PROFESSIONAL LIFE HE EVEN WROTE INTO HIS HUGE CONTRACT WITH HILL & KNOWLTON THE PUBLICRELATIONS AND LOBBYING FIRM AN ESCAPE CLAUSE THAT ALLOWED HIM TO LEAVE IF MR CLINTON CALLED MR CLINTON DID BUT IT WASN'T THE JOB HE HAD ENVISIONED ON CAPITOL HILL FRIENDS OF THE WELLLIKED MR PASTER SAY THEY RARELY SAW HIM SMILE THIS YEAR HE NOW IS CONSIDERING AMONG OTHER OPTIONS RETURNING TO HILL & KNOWLTON AS AN EXECUTIVE AMONG THE PEOPLE BEING CONSIDERED TO SUCCEED MR PASTER ARE MARTIN FRANKS CBS INC LOBBYIST WILLIAM DALEY THE CHICAGO BANKER WHO HEADED MR CLINTON'S LOBBYING CAMPAIGN FOR NAFTA KIRK O'DONNELL A TOP AIDE TO FORMER HOUSE SPEAKER THOMAS O'NEILL D MASS AND LOBBYISTS MIKE BERMAN AND SCOTT PASTRICK AMONG THOSE UNDER DISCUSSION TO TAKE MR NEEL'S JOB ARE NEW YORK LAWYER AND LOBBYIST HAROLD ICKES AND SENIOR WHITE HOUSE AIDE JOHN PODESTA SEPARATELY JOEL KLEIN AN APPELLATE LAWYER IN WASHINGTON WILL BECOME THE NO 2 LAWYER IN THE WHITE HOUSE FILLING THE JOB LEFT OPEN BY THE SUICIDE OF VINCE FOSTER MR KLEIN WILL REPORT TO WHITE HOUSE COUNSEL BERNARD NUSSBAUM KNOWN FOR HIS RELATIVELY FREQUENT AND SUCCESSFUL APPEARANCES BEFORE THE SUPREME COURT MR KLEIN IS A FRIEND OF BOTH PRESIDENT CLINTON AND HIS WIFE HILLARY RODHAM CLINTON MR KLEIN HAS DONE INFORMAL LEGAL WORK FOR THE ADMINISTRATION INCLUDING HELPING TO PREPARE JUSTICE RUTH BADER GINSBURG FOR HER SENATE CONFIRMATION HEARINGS 9311240047 931124 ANTE UP STATES' BIDDING WAR OVER MERCEDES PLANT MADE FOR COSTLY CHASE ALABAMA WON THE BUSINESS BUT SOME WONDER IF IT ALSO GAVE AWAY THE FARM WILL IMAGE NOW IMPROVE BY ES BROWNING AND HELENE COOPER STAFF REPORTERS OF THE WALL STREET JOURNAL MONTGOMERY ALA ALABAMA DECLARED WAR ON NORTH AND SOUTH CAROLINA LAST SPRING NO BLOOD WAS SHED BUT A LOT OF MONEY WAS ON OCT 1 ALABAMA EMERGED VICTORIOUS AS THE SITE OF MERCEDESBENZ AG'S FIRST US CAR PLANT NABBING THE LUXURYCAR MAKER'S MULTIMILLIONDOLLAR INVESTMENT MEANT OVERCOMING A LONGSTANDING REPUTATION FOR RACIAL AND ECONOMIC TROUBLES AND OUTBIDDING THE COMPETITION WE KNEW WE'D HAVE TO BE REALLY AGGRESSIVE SAYS ALABAMA GOV JIM FOLSOM THAT IS PUTTING IT MILDLY STATES TODAY ARE VYING MORE DESPERATELY THAN EVER TO LURE NEW INDUSTRIAL JOBS AND HOLD ON TO THOSE THEY HAVE THEY GIVE AWAY MILLIONS OF DOLLARS IN FREE LAND AS A STARTER AFTER WHICH COME FATTER AND FATTER AID CHECKS FOR SITE CLEARANCE TRAINING EVEN EMPLOYEE SALARIES AND BIG COMPANIES FOREIGN AND DOMESTIC ARE FINDING INGENIOUS WAYS TO CASH IN DURING THE MOST RECENT BIDDING WAR AMONG THE STATES FOR EXAMPLE MERCEDES FOUND NORTH CAROLINA PROPOSING TO BUILD A 35 MILLION TRAINING CENTER AT THE COMPANY'S PLANT TO TRAIN AUTO WORKERS THE GERMAN COMPANY NOT ONLY ENTICED ALABAMA TO MATCH THE OFFER IT PERSUADED GOV FOLSOM TO AGREE TO PAY EMPLOYEES' SALARIES WHILE THEY STUDIED TO OUTBID OTHER STATES ALABAMA'S GOVERNOR HURRIEDLY WON LEGISLATIVE APPROVAL FOR SPECIAL LAVISH TAX CONCESSIONS DUBBED ALABAMA'S MERCEDES LAW AND OFFERED TO SPEND TENS OF MILLIONS OF DOLLARS BUYING MORE THAN 2500 MERCEDES VEHICLES FOR STATE USE ALABAMA OFFICIALS EVEN AGREED AT THE LAST MINUTE TO PLACE MERCEDES'S DISTINCTIVE EMBLEM FREE ATOP A LOCAL SCOREBOARD IN TIME FOR THE BIG TELEVISED ALABAMATENNESSEE FOOTBALL GAME ALABAMA WOUND UP PROMISING MERCEDES WELL OVER 300 MILLION IN INCENTIVES WHICH ECONOMICDEVELOPMENT EXPERTS CALL A RECORD PACKAGE FOR A FOREIGN COMPANY IT IS A RECORD THAT MAY NOT STAND VERY LONG BACK IN THE 1980S AFTER JAPANESE AUTO MAKERS PULLED IN THENRECORD SUBSIDIES IN EXCHANGE FOR NEW PLANTS IN OHIO TENNESSEE AND KENTUCKY POLITICIANS BEGAN VOWING TO BRING THE BIDDING WARS UNDER CONTROL IT DIDN'T HAPPEN LAST YEAR SOUTH CAROLINA OFFERED BAYERISCHE MOTOREN WERKE AG AT LEAST 130 MILLION IN INCENTIVES TO BUILD A BMW AUTOMOTIVE FACTORY THERE THE STATE PAID TO MOVE 100 FAMILIES FROM THEIR HOMES SO BMW COULD HAVE THE EXACT SITE IT WANTED TO MANUFACTURE ITS LUXURY CARS AND THEN AGREED TO LEASE BMW THE LAND FOR A DOLLAR A YEAR ON THE DOMESTIC FRONT NORTHWEST AIRLINES LAST YEAR WON 270 MILLION IN LOANS FROM MINNESOTA TO PROP UP THE AIRLINE'S SHAKY FINANCES WALT DISNEY CO BELLIED UP TO THE TROUGH THIS YEAR THREATENING TO CANCEL A PLANNED DISNEYLAND EXPANSION IN SOUTHERN CALIFORNIA UNLESS IT GETS 800 MILLION IN CITY STATE AND FEDERAL INFRASTRUCTURE SPENDING IN THE PAST 13 MONTHS NEW YORK CITY AWARDED TAX CUTS WORTH 30 MILLION EACH TO SECURITIES CONCERNS MORGAN STANLEY GROUP AND KIDDER PEABODY GROUP INC A GENERAL ELECTRIC CO UNIT WHICH THREATENED TO MOVE TO THE NEW JERSEY AND CONNECTICUT SUBURBS IN WHAT NEW YORK OFFICIALS VIEW AS FITTING RETRIBUTION CONNECTICUT'S SUBURBAN TOWNS NOW ARE HAVING TO OFFER TAX CUTS TO THEIR OWN LOCAL INDUSTRIES TO KEEP THEM FROM MIGRATING TO THE SUN BELT CRITICISM OF THE BIDDING WARS IS MOUNTING ANEW BUSINESS LEADERS COMPLAIN THAT SUCH AID GIVES NEWCOMERS AN UNFAIR ADVANTAGE OVER ESTABLISHED BUSINESSES GOVERNMENT OFFICIALS WORRY THAT IT WASTES MONEY THAT SHOULD BE GOING TO REPAIR CRUMBLING HIGHWAYS AND RELIEVE UNDERPAID TEACHERS ALABAMA FOR EXAMPLE IS UNDER COURT ORDER TO SPEND MORE THAN 500 MILLION A YEAR UPGRADING ITS SCHOOLS MERCEDES'S CORPORATE INCOME TAXES COULD HAVE BEEN USED TO HELP PAY THOSE BILLS BUT MERCEDES WILL BE EXEMPT FROM SUCH TAXES FOR YEARS THERE ARE A LOT OF PEOPLE IN ALABAMA THAT THINK WE GAVE THE FARM AWAY SAYS JOHNNY CAGLE AN UNEMPLOYED COAL MINER FROM NAUVOO ALA WHO SERVES IN THE STATE LEGISLATURE SOME ECONOMISTS AGREE THERE'S SOME QUESTION WHETHER STATES CAN PLAY THIS SECRETIVE GAME WITH TAXPAYERS' MONEY BUT THEY DO SAYS DOUGLAS WOODWARD ASSOCIATE PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF SOUTH CAROLINA THERE SEEMS TO BE VERY LITTLE ACCOUNTABILITY OVER IT NOBODY DOES ANY FOLLOWUP AND NOBODY DOES ANY COST BENEFIT ANALYSIS IN AUGUST THE NATIONAL GOVERNORS' ASSOCIATION ADOPTED VOLUNTARY GUIDELINES THAT THEIR SPONSOR ILLINOIS GOV JIM EDGAR SAID WERE INTENDED TO DEESCALATE THE BIDDING WARS THAT HAVE TOO OFTEN PENALIZED EXISTING BUSINESS AND SQUANDERED PRECIOUS RESOURCES BUT LITTLE DEESCALATION IS EVIDENT INDIANA GOV EVAN BAYH FOR EXAMPLE WON ELECTION IN 1988 AFTER ACCUSING PREDECESSORS OF OVERPAYING TO ATTRACT A JAPANESE AUTO PLANT BY 1991 GOV BAYH HIMSELF WAS BEING ATTACKED BY NEIGHBORING GOVERNORS FOR OFFERING UNITED AIRLINES 291 MILLION IN INCENTIVES TO BUILD A NEW MAINTENANCE FACILITY IN INDIANAPOLIS NOW INDIANA IS WORKING ON AN AGGRESSIVE NEW TAXCREDIT LAW TO HELP IT COMPETE WITH SIMILAR LAWS IN KENTUCKY AND OHIO WE VIEW THIS AS A NECESSARY EVIL SAYS A BAYH SPOKESMAN WHO ADDS THAT INDIANA CAN DEMAND THE RETURN OF SOME AID IF RECIPIENTS LIKE UNITED DON'T CREATE THE JOBS ANTICIPATED ALABAMA PASSED ITS TAXINCENTIVE LAW ALMOST EXACTLY AT THE MOMENT THE GOVERNORS' ASSOCIATION WAS CONDEMNING THE IDEA GOV FOLSOM SAYS THAT WITH NEIGHBORING STATES COMPETING ALLOUT ALABAMA WOULD HAVE BEEN NAIVE TO DO OTHERWISE HE SAYS THE INVESTMENT WAS WORTH EVERY PENNY BECAUSE OF OUR IMAGE PROBLEMS WE WERE CONTINUALLY BEING WRITTEN OFF WHEN PEOPLE WERE LOOKING FOR FACTORY SITES HE EXPLAINS SITTING IN HIS WOODPANELED OFFICE IN THE FRESHLY RESTORED ALABAMA CAPITOL MERCEDES'S DECISION TO COME TO ALABAMA IS WORTH BILLIONS OF DOLLARS IN PUBLIC RELATIONS TO US NOW I THINK WE'LL BE LOOKED AT IN A DIFFERENT LIGHT MERCEDES INITIALLY HAD SO LITTLE INTEREST IN ALABAMA THAT ANDREAS RENSCHLER WHO HEADED MERCEDES'S SITESELECTION TEAM AND IS SLATED TO RUN THE NEW FACTORY SAYS HE DIDN'T EVEN PLAN TO VISIT TO OVERCOME GERMAN WORRIES ABOUT ALABAMA'S RACIAL HISTORY GOV FOLSOM SAYS WE TRIED TO TELL THEM THAT ALABAMA IS NO MORE THE STATE IT WAS IN THE 1950S AND 1960S THAN GERMANY IS THE SAME COUNTRY IT WAS IN THE DAYS OF THE HITLER REGIME THEY KIND OF NODDED THEIR HEADS WHEN I SAID THAT OF MORE THAN 20 STATES THAT MERCEDES LOOKED AT SERIOUSLY IT INITIALLY LEANED TOWARD NORTH CAROLINA WHERE MERCEDES'S PARENT DAIMLERBENZ AG ALREADY BUILDS FREIGHTLINER TRUCKS AND NORTH CAROLINA OFFICIALS SAY GOV JIM HUNT PURSUED MERCEDES HARDER THAN HE EVER HAD PURSUED A POTENTIAL INVESTOR MERCEDES OFFICIALS SAY THEY WERE SURPRISED AT THE VARIOUS STATES' ARDOR BUT THEY QUICKLY CASHED IN ON IT THEY MERCEDES WOULD GET OFFERS FOR CERTAIN THINGS FROM CERTAIN STATES PUT IT ON THEIR IDEAL CONTRACT PROPOSAL AND THEN COME BACK TO US AND ASK IF WE'D BE WILLING TO DO SUCHANDSUCH SAYS GEORGE WATTS CARR NORTH CAROLINA COMMERCE DEPARTMENT'S DIRECTOR OF BUSINESS AND INDUSTRY DEVELOPMENT MERCEDES PERSUADED ALL THE MAIN COMPETITORS TO OFFER 5 MILLION FOR A WELCOME CENTER NEXT TO THE FACTORY WHERE CUSTOMERS COULD PICK UP CARS HAVE THEM SERVICED AND VISIT AN AUTO MUSEUM IT GOT COMMITMENTS FOR FREE 18MONTH EMPLOYEETRAINING PROGRAMS IT GOT STATE GOVERNMENTS AND UTILITIES TO PROMISE TO BUY LARGE QUANTITIES OF THE FOURWHEELDRIVE RECREATIONAL VEHICLES THAT THE NEW FACTORY WILL PRODUCE THEN CAME A BOMBSHELL AT A LATENIGHT MEETING AT ALAMANCE COMMUNITY COLLEGE NEAR NORTH CAROLINA'S PROPOSED SITE IN ALAMANCE COUNTY A MERCEDES OFFICIAL TURNED TO ASK NORTH CAROLINA SECRETARY OF COMMERCE DAVE PHILLIPS A QUESTION WOULD THE STATE PICK UP THE SALARIES OF ITS 1500 WORKERS FOR THEIR FIRST YEAR OR SO ON THE JOB AT A COST OF 45 MILLION THE WORKERS WOULD BE IN THEIR TRAINING THEN AND WOULDN'T BE PRODUCING ANYTHING MERCEDES EXPLAINED I WAS SITTING NEXT TO THE GOVERNOR MR PHILLIPS RECALLS WE WERE BOTH SHOCKED WE JUST SAID NO RIGHT OUT I MEAN TRAINING IS ONE THING BUT PAYING SOMEONE'S WAGES ALABAMA MEANWHILE WAS GETTING SIMILAR QUESTIONS AND WAS SAYING YES YES YES EVEN TO THE SALARY REQUEST THE MERCEDES PROJECT SIMPLY WAS WORTH MORE TO US THAN IT WAS TO ANY OTHER STATE SAYS BILLY JOE CAMP ALABAMA'S ECONOMICDEVELOPMENT DIRECTOR WHEN MERCEDES NEEDED MORE LAND THAN ALABAMA EXPECTED OFFICIALS IN TUSCALOOSA COUNTY HOME OF ALABAMA'S SITE WENT DOOR TO DOOR FOR THREE WEEKS NEGOTIATING TO BUY PEOPLE'S HOMES SO THE LAND COULD BE GIVEN TO MERCEDES FOR 100 A DETAILED TOPOGRAPHICAL MAP WHICH NORMALLY TAKES FOUR MONTHS TO PREPARE WAS FINISHED IN FOUR WEEKS AND SENT TO MERCEDES'S CONSULTANTS IN SOUTH CAROLINA BY CHARTERED JET TO AVOID MISSING A DEADLINE EVEN BY A FEW HOURS I'VE NEVER BEEN IN A WAR THANK GOD BUT I'VE OFTEN THOUGHT THAT THIS MUST BE WHAT WAR IS LIKE SAYS J DARA LONGGREAR EXECUTIVE DIRECTOR OF THE TUSCALOOSA COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY YOU LOSE TRACK OF TIME YOU MISS MEALS FIVE O'CLOCK COMES AND IT MEANS NOTHING WEEKENDS MEAN NOTHING FAMILY IS JUST SOMETHING YOU GO HOME TO TO SLEEP WHEN THE PROJECT DIRECTOR MR RENSCHLER DECIDED NOT TO VISIT THE STATE ALABAMA OFFICIALS COURTED HIS SUBALTERNS THEY ARRANGED A MEETING WITH JAPANESE AND BRITISH MANAGERS WHO RUN FOREIGNOWNED COMPANIES IN TUSCALOOSA THE HEAD OF ALABAMA'S BIG STATEPENSION FUND DROVE TO TUSCALOOSA TO OFFER TO PUT MONEY IN THE PROJECT MR RENSCHLER'S IMPRESSED AIDES PERSUADED HIM TO POSTPONE HIS RETURN TO GERMANY AND VISIT ALABAMA A GROUP OF BUSINESSES LED BY THE POLITICALLY ACTIVE UTILITY ALABAMA POWER CO AGREED TO PROVIDE THEIR OWN 11 MILLION SUBSIDY TO THE GERMANS BIG COMPANIES INCLUDING ALABAMA POWER PROMISED TO BUY MERCEDES VEHICLES LOCAL HOTELS CLUBS AND BUSINESSES OFFERED THEIR SERVICES FOR FREE LOCAL GOVERNMENT AGENCIES OFFERED LOWINTEREST LOANS EARLY IN AUGUST WHEN MERCEDES NEEDED MORE INFORMATION GOV FOLSOM CANCELED HIS APPOINTMENTS AND FLEW TO STUTTGART ON THREE DAYS' NOTICE IN MIDAUGUST ALABAMA PASSED ITS TAILORMADE TAX LAW HELPING TO FINANCE MERCEDES'S 300 MILLION PLANT CONSTRUCTION MERCEDES SAYS IT AGREED TO LIMIT ITSELF TO USING JUST 426 MILLION IN INCOME AND PAYROLL TAX CREDITS ALABAMA OFFICIALS SAY THAT WAS ALL MERCEDES EXPECTED TO BE ABLE TO USE BASED ON PROFIT PROJECTIONS IT ALSO WILL BE ALLOWED HOWEVER TO ESCAPE MORE THAN 9 MILLION A YEAR IN PROPERTY TAXES AND OTHER FEES AS PERMITTED UNDER EXISTING LAW SOUTH CAROLINA WHICH HAD PROMISED TO MOVE EIGHT ENDANGERED REDCOCKADED WOODPECKERS IN ORDER TO OVERCOME ENVIRONMENTAL PROBLEMS AT ITS PROPOSED SITE WAS OFFERING 80 MILLION IN TAX CREDITS OVER A PERIOD OF 20 YEARS BUT ALABAMA'S OFFER WAS MORE ATTRACTIVE A TAX CREDIT AVAILABLE IN ADVANCE IN THE FORM OF AN INTERESTFREE LOAN MERCEDES OFFICIALS ALSO SAY ALABAMA'S PROMISED EDUCATION SPENDING WHICH INCLUDES PAYING SALARIES DURING TRAINING WAS DOUBLE ANY OTHER STATE'S PROMISE WHEN NORTH CAROLINA FAILED TO MATCH ALABAMA'S TAX BREAKS COMMERCE SECRETARY PHILLIPS SAYS CONTACTS WITH MERCEDES COOLED MERCEDES WHICH SAYS OFFICIALLY THAT INCENTIVES WEREN'T ITS PRIMARY REASON FOR CHOOSING ALABAMA INSISTS THAT RELATIONS WITH NORTH CAROLINA NEVER COOLED IT SAYS IT HAD REAL TROUBLE CHOOSING AMONG ITS THREE FINALISTS ALABAMA NORTH CAROLINA AND SOUTH CAROLINA A NORTH CAROLINA OFFICIAL SAYS SHE REALIZED THE GAME WAS OVER WHEN SHE PHONED MERCEDES'S CHIEF SITESELECTION CONSULTANT JUST BEFORE THE FINAL DECISION AND WAS TOLD HE WAS ON VACATION CRITICS OF THIS KIND OF AUCTION SAY THAT BY THE TIME A STATE WINS THE AID IT HAS PROMISED OFFSETS MUCH OF THE ECONOMIC BENEFIT THE GIVEAWAYS RARELY DETERMINE WHETHER THE COMPANY WILL MAKE AN INVESTMENT IN THE FIRST PLACE THEY JUST INFLUENCE WHICH STATE THE FACTORY GOES IN ECONOMISTS SAY AND THE AID RARELY CREATES JOBS IT SHIFTS THEM FROM STATE TO STATE MOREOVER EVEN THOUGH THE STATES ARE SPENDING PUBLIC MONEY THEY ALMOST NEVER PROVIDE A FULL ACCOUNTING OF THE TOTAL COST TO TAXPAYERS I THINK WE ALL WISH WE WOULDN'T HAVE TO GET INTO THIS AID SAYS THEODORE J VON CANNON PRESIDENT OF THE BIRMINGHAM METROPOLITAN DEVELOPMENT BOARD WHICH HELPED LURE MERCEDES TO ALABAMA BUT AS LONG AS WE HAVE A FREE ENTERPRISE SYSTEM THERE'S NOT MUCH YOU CAN DO ABOUT IT OFFICIALS LIKE MR VON CANNON WHOSE JOB IT IS TO LURE INVESTMENT TO THEIR REGIONS INSIST THE BENEFITS FAR OUTWEIGH THE COSTS WHILE MERCEDES PLANS TO HIRE JUST 1500 PEOPLE ALABAMA ECONOMISTS SAY THEY EXPECT RIPPLE EFFECTS TO CREATE A TOTAL OF 10000 NEW JOBS IN JUST FIVE YEARS A STUDY BY ECONOMISTS AT ALABAMA'S TROY STATE UNIVERSITY SAYS MERCEDES WILL PULL IN AUTOPARTS AND SERVICE COMPANIES BEEFING UP LOCAL SALARIES THE LOCAL TAX BASE AND EVEN LOCAL RETAIL SALES IN AN AREA THAT BADLY NEEDS NEW INVESTMENT MERCEDES SAYS IT EXPECTS ULTIMATELY TO INVEST A TOTAL OF 1 BILLION IN ALABAMA FAR MORE THAN THE INITIAL 300 MILLION IT WILL COST TO PUT UP THE PLANT IT SCOFFS AT THE IDEA THAT IT MIGHT EVER THINK ABOUT PULLING OUT BUT NOT ALL SUBSIDIZED INVESTMENT TURNS OUT AS PLANNED THIS YEAR YPSILANTI MICH LOST A COURT BATTLE TO REVERSE GENERAL MOTORS CORP'S 1991 DECISION TO CLOSE A PLANT LOCAL AUTHORITIES HAD JUST GIVEN IT A 13 MILLION TAX CREDIT IN A VAIN ATTEMPT TO KEEP THE PLANT OPEN IN ITS RULING THE MICHIGAN COURT OF APPEALS SAID IT HAS NEVER BEEN HELD THAT AN ABATEMENT CARRIES A PROMISE OF CONTINUED EMPLOYMENT 9311240046 931124 MINE WORKERS ELIMINATE PICKET LINES AS PART OF PACT UNITED MINE WORKERS UNION MEMBERS SIGNALING AN END TO A SIXMONTH STRIKE LEFT THEIR PICKET LINES YESTERDAY AS PART OF AN AMNESTY AGREEMENT FOR WORKERS FIRED DURING THE SIXMONTH WORK STOPPAGE UMW AND BITUMINOUS COAL OPERATORS ASSOCIATION OFFICIALS SAID THEY WERE STILL WORKING ON A TENTATIVE AGREEMENT AND DECLINED TO SPECULATE WHEN A CONTRACT WOULD BE COMPLETE THE AMNESTY AGREEMENT COVERS WORKERS WHO WERE FIRED AFTER BEING CHARGED WITH PICKETLINE MISCONDUCT ONE PERSON FAMILIAR WITH THE TALKS SAID BOTH SIDES WANTED TO ELIMINATE THE PICKET LINES TO AVOID POTENTIAL CONFRONTATIONS DURING THE FINAL DAYS OF NEGOTIATIONS THE UMW BEGAN ITS SELECTIVE STRIKE MAY 10 THE UNION HAS DEMANDED THAT ITS WORKERS GET ALLNEW JOBS AFTER WATCHING SEVERAL COMPANIES OPEN NONUNION SUBSIDIARIES THE NEW CONTRACT IS SAID TO INCLUDE MAJOR WORKRULE CHANGES WHICH COULD MAKE UNION MINES AS PRODUCTIVE AS THEIR NONUNION COUNTERPARTS IN EXCHANGE THE COMPANIES PROMISED TO HIRE A HIGH PERCENTAGE OF NEW MINERS FROM THE UMW 9311240045 931124 TEXAS JOURNAL WHAT PRICE NAFTA TEXAS POLITICIANS MAY SOON FIND OUT BY ROBERT TOMSHO THE VOTE IS OVER BUT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL STILL BE A HOT ISSUE WHEN THE TEXAS AFLCIO'S COMMITTEE ON POLITICAL EDUCATION MEETS IN AUSTIN IN JANUARY SOME UNION LEADERS ARE QUIETLY LOBBYING TO CLOSE THE MEETING WHERE THE COMMITTEE ENDORSES STATE CANDIDATES AND DOLES OUT POLITICAL CONTRIBUTIONS TO POLITICIANS WHO SUPPORTED NAFTA THAT MIGHT INCLUDE GOV ANN RICHARDS WHO LOBBIED HARD FOR THE TREATY AND FACES A TOUGH REELECTION BATTLE NEXT YEAR WITH REPUBLICAN BUSINESSMAN GEORGE W BUSH SON OF THE FORMER PRESIDENT OF THE STATE'S 21 DEMOCRATIC CONGRESSMEN 15 VOTED FOR THE TRADE AGREEMENT CLOSING THE MEETING COULD SIGNAL THAT DEMOCRATIC NAFTA BACKERS SHOULD EXPECT SMALLER CONTRIBUTIONS AND FAR LESS CAMPAIGN HELP IN 1994 SOME FORMER CAMPAIGN WORKERS AMONG THE RANK AND FILE WILL BURN AT THE STAKE BEFORE THEY COME BACK SAYS TEXAS AFLCIO PRESIDENT JOE GUNN SOME OF THE UNION'S TEXAS LEADERS SAY IT SHOULD SHIFT FUNDS FROM POLITICAL CONTRIBUTIONS TO A PLANNED ORGANIZING SCHOOL NAFTA'S PASSAGE THEY SAY MAY HAVE HEIGHTENED NONUNION TEXANS' ANXIETY ABOUT JOBS MOVING TO MEXICO MAKING THEM RIPE FOR ORGANIZING CLEARLY SPENDING ON THE POLITICAL SIDE DIDN'T GET US WHERE WE WANTED TO GO SAYS ONE UNION LEADER 9311240043 931103 THE GREAT TRUCK ROBBERY BY JAMES BOVARD AS THE CLINTON ADMINISTRATION CAMPAIGNS TO GREATLY INCREASE FEDERAL POWER OVER HEALTH CARE PRICING THE CONTINUING DEBACLE OF FEDERAL CONTROLS OVER TRUCKING PRICES IS WORTH EXAMINING IN THE PAST SIX YEARS HUNDREDS OF THOUSANDS OF BUSINESSES HAVE BEEN HIT WITH UNJUST RETROACTIVE BILLS SOLELY DUE TO A DEFECT IN FEDERAL REGULATIONS AND CONGRESSIONAL LEGISLATION IN 1980 CONGRESS PASSED THE MOTOR CARRIER ACT LARGELY DEREGULATING THE TRUCKING INDUSTRY BUT A GLITCH IN THE ACT IS ALLOWING UNSCRUPULOUS LAWYERS TO RAVAGE LEGIONS OF AMERICAN COMPANIES UNDER THE FILEDRATE DOCTRINE ESTABLISHED BY COURT RULINGS OVER THE PAST CENTURY A TRANSPORT HAULING AGREEMENT BETWEEN TWO PRIVATE CITIZENS IS PRESUMABLY UNFAIR UNLESS IT HAS BEEN PLACED IN THE INTERSTATE COMMERCE COMMISSION'S FILES THIS AMOUNTS TO A DEIFICATION OF GOVERNMENT FILING CABINETS CONGRESS DID NOT FORMALLY REPEAL THE REQUIREMENT THAT TRUCKING COMPANIES MUST FILE THEIR SHIPPING RATES WITH THE ICC BUT SINCE THE ICC TOOK NO ACTION ON THE RATE FILINGS IT RECEIVED MANY TRUCKING COMPANIES CEASED FILING AS OF 1987 PREVAILING TRUCKING RATES WERE APPROXIMATELY 40 BELOW THE RATES ON FILE THE 1887 INTERSTATE COMMERCE ACT GAVE THE ICC A LOOPHOLE TO THE FILEDRATE DOCTRINE THE ICC CAN RULE THAT A FILED RATE IS UNREASONABLE AND THUS THAT THE SHIPPER HAS NO OBLIGATION TO PAY IT SHORTLY AFTER LAWYERS BEGAN DEMANDING RETROACTIVE SURCHARGES THE ICC RULED THAT THAT SUCH DEMANDS WERE INDEED AN UNREASONABLE PRACTICE BUT IN 1990 THE SUPREME COURT RULED THAT THE RETROACTIVE CHARGES WERE LEGAL SINCE EVEN WRITTEN AGREEMENTS BETWEEN TRUCKERS AND BUSINESSES MUST BE PRESUMED ILLEGAL UNLESS FILED AFTER THE SUPREME COURT DECISION RATE SHARKS LAWYERS TRYING TO COLLECT RETROACTIVE CHARGES WENT INTO A FEEDING FRENZY BUSINESSES NONPROFIT ORGANIZATIONS AND OTHER TARGETS HAVE BEEN HIT WITH MORE THAN 500000 RETROACTIVE BILLS BECAUSE OF THE UNDERCHARGE BONANZAS SOME TRUCKING FIRMS BECAME WORTH MORE DEAD THAN ALIVE AND FILED FOR BANKRUPTCY SO THEY COULD SUE THEIR FORMER CUSTOMERS THE ICC ESTIMATES THAT UP TO 80 OF THE MONEY SHAKEN OUT OF SHIPPERS GOES TO LAWYERS AND COLLECTION AGENTS WITH ONLY A SMALL SHARE GOING TO THE EMPLOYEES OF THE BANKRUPT TRUCKING FIRMS IBM WAS HIT WITH A DEMAND FOR 60 MILLION FROM THE BANKRUPTCY OF A SINGLE TRUCKING COMPANY TRANSCON LINES SMALLBUSINESS MEN WITHOUT INHOUSE LAWYERS TO DEFEND THEM ARE BEING HIT ESPECIALLY HARD TONY FREESE A HOUSTON ENTREPRENEUR HIT BY A LARGE UNDERCHARGE BILL SAID I SELL SKATEBOARDS I AM NOT UP ON THE LEGALITIES OF INTERSTATE COMMERCE ONE KANSAS CITY MO CARPET DISTRIBUTOR WAS HANDED A RETROACTIVE BILL THAT RAISED HIS SHIPPING RATE TO 3206 A SQUARE YARD FROM 16 CENTS A SQUARE YARD A CHARITY THAT COLLECTED PRODUCTS DONATED TO THE UNITED WAY WAS HIT THIS YEAR WITH A DEMAND FOR 100000 IN BACK CHARGES BANKRUPTCY TRUSTEES EVEN DEMANDED BACK PAYMENTS FROM A GROUP OF MASSACHUSETTS NUNS SOME FORMER CUSTOMERS HAVE BEEN DRIVEN OUT OF BUSINESS TRUSTEES ARE COLLECTING A MEGAREWARD BECAUSE TRUCKING COMPANIES BROKE FEDERAL LAW SINCE IT WAS THE TRUCKERS THEMSELVES THAT HAD A LEGAL OBLIGATION TO FILE THEIR RATES WITH THE ICC IT IS SOLELY THROUGH THEIR OWN NEGLIGENCE OR IN SOME CASES DISHONESTY THAT THEIR FORMER CUSTOMERS ARE GETTING BILKED IN MANY CASES TRUCKERS USED BAITANDSWITCH TACTICS CONTRACTING WITH A COMPANY TO SHIP ITS GOODS AT A RATE THEY HAD LEGALLY FILED WITH THE ICC AND THEN CANCELING THE RATE WITHOUT INFORMING THE SHIPPER THE PRESIDENT OF ONE DEFUNCT TRUCKING COMPANY ROBERT TANNENBAUM EVEN WENT TO THE ICC AND TORE OUT PAGES OF FILED RATES REPLACED THEM WITH PHONY RATES AND THEN BILLED SHIPPERS FOR 17 MILLION BECAUSE THE RATES THEY HAD PAID WERE NOT ON FILE ON SEPT 28 TANNENBAUM WAS SENTENCED TO PRISON FOR RACKETEERING AND ORDERED TO FORFEIT 2 MILLION TO THE FEDERAL GOVERNMENT THE ICC ESTIMATES THAT THE TOTAL DEMANDS FOR RETROACTIVE PAYMENTS COULD REACH 32 BILLION THIS IS MORE THAN FOUR TIMES THE TOTAL AMOUNT STOLEN BY THIEVES AND BURGLARS EACH YEAR ACCORDING TO THE US CENSUS BUREAU YET WHILE AMERICANS' ANXIETY OVER PROPERTY CRIME IS AT A FEVER PITCH LITTLE ATTENTION IS PAID TO DE FACTO ROBBERIES SPAWNED BY MANGLED REGULATORY REGIMES CONGRESS COULD EASILY ENACT A LAW THAT ENDED THE ABILITY OF TRUCKING COMPANY TRUSTEES TO HIT FORMER CUSTOMERS WITH RETROACTIVE BILLS BUT IT HAS NOT DEIGNED TO DO SO WHILE CONGRESS IS ON THE VERGE OF ENACTING LEGISLATION TO ALLOW BUSINESSES TO SETTLE UNDERCHARGE CLAIMS FOR 20 CENTS ON THE DOLLAR IT IS AN OUTRAGE THAT ANY COMPANY WOULD BE HIT BY ANY RETROACTIVE CHARGES SOLELY AS A RESULT OF FAULTY LEGISLATION AND FOOLISH COURT DECISIONS THE TEAMSTERS WHOSE MEMBERS ARE ONE OF THE BENEFICIARIES OF THE RETROACTIVE SURCHARGES DONATED MORE THAN 24 MILLION TO CANDIDATES IN THE LAST CONGRESSIONAL ELECTIONS AND THEY APPARENTLY BOUGHT VETO POWER OVER ANY SENSE OF DECENCY AND FAIR PLAY THAT CONGRESSMEN MIGHT HAVE HAD FEDERAL REGULATIONS TO IMPOSE FAIR PRICES ON TRUCKING HAVE RESULTED IN GREATER INJUSTICES THAN ANY CONCEIVABLE PRIVATE PRACTICE SHORT OF OPEN PIRACY IF CONGRESS CANNOT FAIRLY OR RATIONALLY OVERSEE TRUCKING PRICES THERE IS NO REASON TO BELIEVE THAT POLITICIANS AND BUREAUCRATS HAVE ANY COMPETENCE TO CONTROL A FAR MORE COMPLEX DOMAIN SUCH AS HEALTHCARE PRICES MR BOVARD WRITES OFTEN ON PUBLIC POLICY SEE RELATED LETTER LETTERS TO THE EDITOR SELFINFLICTED WOUNDS IN TRUCKING INDUSTRY WSJ NOV 19 1993 9311030116 YY93 MM11 9311240040 931124 TEXAS JOURNAL NEXT HE'LL SEEK FUNDING FOR A BIG ATOM SMASHER BY ROBERT JOHNSON A TEXAS PLANT PHYSIOLOGIST WHOSE PRICKLYPEAR RESEARCH GRANT PRESIDENT BUSH ONCE DERIDED AS PORKBARREL SPENDING WILL SOON UNVEIL THE FRUITS OF HIS LATEST WORK A MACHINE TO HARVEST TREES FROM TEXAS FORESTS PETER FELKER'S MODIFIED TRACTOR WITH HUGE STEEL JAWS WILL COME IN HANDY AMID THE MESQUITE OF SOUTH TEXAS AT LEAST DR FELKER HOPES SO AFTER SPENDING 300000 IN FEDERAL GRANT MONEY ON THE PROJECT AT TEXAS A&I UNIVERSITY IN KINGSVILLE MESQUITE FETCHES UP TO 2000 A TON BUT IT'S HARD TO HARVEST DR FELKER'S CHOMPER HAS A HEAVY STEEL BRACE LIKE A BATTERING RAM TO KNOCK THE TREES OVER THE JAWS THEN PULL THE WOOD INTO ITS POWERFUL BLADES WHICH CUT THE TREES DOWN TO SIZE BY THE WAY DR FELKER STILL GETS FEDERAL MONEY TO DEVELOP MORE BOUNTIFUL VARIETIES OF PRICKLY PEARS IT'S NOT THE NOVELTY THE EASTERN ESTABLISHMENT THINKS HE SAYS IT CAN BE A BASIC NUTRITIONAL SOURCE 9311240037 931102 LEISURE & ARTS LOONS HAVE LAST LAUGH IN CENTRAL PARK POND SPAT BY MARIE WINN NEW YORK THE COMMON LOON IS A LARGE POWERFUL WATER BIRD KNOWN FOR ITS DEMENTED CALL IT HAS BEEN AROUND FOR SOME 65 MILLION YEARS THE CENTRAL PARK RESERVOIR A MERE 131 YEARS BOTH ARE IN TROUBLE CURIOUSLY ENOUGH ONE MAY HELP SAVE THE OTHER COMMON LOONS GAVIA IMMER ARE COMMON IN NAME ONLY THEY ARE ENDANGERED IN AT LEAST ONE STATE THREATENED IN SEVERAL OTHERS AND LISTED AS A SPECIES OF SPECIAL CONCERN IN YET OTHERS INCLUDING NEW YORK WINTERING LOONS WHO BRAVE THE ELEMENTS AT SEA UP AND DOWN BOTH COASTS OF NORTH AMERICA ARE VULNERABLE TO OIL SPILLED BY TANKERS ACID RAIN AND SHORELINE DEVELOPMENT ON THE ONCESOLITARY NORTHERN LAKES WHERE LOONS BREED HAVE DIMINISHED THEIR REPRODUCTIVE SUCCESS TO ADD TO THEIR TROUBLES THESE DISTINCTIVE DEEPDIVING BIRDS INGEST QUANTITIES OF LEAD FISHING SINKERS THAT LITTER LAKE BOTTOMS THE RESULT A HIGH LOON MORTALITY RATE FROM LEAD POISONING MEANWHILE THE CENTRAL PARK RESERVOIR IS ENDANGERED TOO IT IS THE PARK'S LARGEST BODY OF WATER OCCUPYING SOME 106 ACRES NORTH OF THE 86TH STREET TRANSVERSE AND IT HAS SERVED AS A FUNCTIONING PART OF THE CITY'S WATER SUPPLY SYSTEM SINCE 1862 A CHAINLINK FENCE AROUND ITS 158MILE PERIMETER KEEPS NEIGHBORS HUMAN AND CANINE FROM TAKING A PLUNGE IN ITS PRISTINE DEPTHS LAST SPRING THE RESERVOIR MADE THE LEADING LOCAL PAPER'S FRONT PAGE RESERVOIR IS DEEMED OBSOLETE THANKS TO NEW TECHNOLOGY CITY OFFICIALS ANNOUNCED COMBINED WITH PUBLIC FEAR OF WATER CONTAMINATION A DECISION HAD BEEN REACHED TO STOP PUMPING DRINKING WATER FROM THE RESERVOIR BY THE END OF THE DECADE WHEN A NEW PUMPING SYSTEM WILL BE COMPLETE THE RESERVOIR'S JURISDICTION WILL PASS FROM THE DEPARTMENT OF ENVIRONMENTAL PRESERVATION THE AGENCY IN CHARGE OF THE WATER SUPPLY TO THE PARKS DEPARTMENT SPECULATION AND ANXIOUS HAGGLING OVER THE RESERVOIR'S FUTURE SWIFTLY FOLLOWED ONE FACTION PROPOSED THAT THE WATER BE DRAINED AND THE SITE CONVERTED INTO BALLFIELDS THIS PLAN WAS PARTICULARLY UNPOPULAR WITH TWO POWERFUL GROUPS THE FORTUNATE AND OFTEN INFLUENTIAL OWNERS OF APARTMENTS WITH WINDOWS LOOKING OUT OVER THE PARK AND RESERVOIR WHO MADE IT CLEAR THAT THEIR HAPPINESS DEPENDS ON SEEING THAT LARGE BODY OF WATER INTACT AND THE LEGIONS OF JOGGERS WHO POUND AROUND THE RESERVOIR'S CIRCUMFERENTIAL DIRT TRACK THEY DECLARED EACH AND EVERY CARDIOVASCULARLY FIT MAN AND WOMAN OF THEM THAT THEY MUST HAVE WATER IN THEIR PERIPHERAL VISION AS THEY HUFF AND PUFF OTHER PLANS WOULD RETAIN THE RESERVOIR BUT TURN IT INTO AN AQUATIC PLAYLAND AT A RECENT PANEL DISCUSSION ON THE RESERVOIR'S FUTURE ORGANIZED BY THE MUNICIPAL ARTS SOCIETY VARIOUS CITY BIGWIGS WERE ENTHUSIASTIC ABOUT PLANS THAT WOULD OFFER SWIMMING PERHAPS WITH MACHINEGENERATED WAVES WINDSURFING BOATING AND FISHING FOR RECREATIONHUNGRY NEW YORKERS LAST WEEK THE CITY RESPONDED FAVORABLY TO A FLOOD OF LETTERS FROM NEW YORKERS URGING THAT THE RESERVOIR NOT BE ELIMINATED ON THURSDAY COMMISSIONERS OF THREE CITY AGENCIES GATHERED IN FRONT OF THE RESERVOIR'S HISTORIC SOUTH PUMPING STATION AND SIGNED A MEMORANDUM OF UNDERSTANDING IT DECLARED THAT THE RESERVOIR WOULD BE PRESERVED AS A PERMANENT WATER FEATURE OF CENTRAL PARK BUT THIS DID NOT ASSUAGE THE FEARS OF ANOTHER PASSIONATE INTEREST GROUP THE PARK'S FAITHFUL BIRDWATCHERS THEY KNOW THAT BECAUSE OF ITS SIZE AND ITS PROTECTIONS FROM HUMAN ENCROACHMENT THE CENTRAL PARK RESERVOIR HAS LONG PROVIDED SHELTER TO A REMARKABLE VARIETY OF BIRD LIFE IF IT IS TO CONTINUE TO DO SO AND THEY PASSIONATELY HOPE IT WILL THE RESERVOIR MUST NOT MERELY REMAIN INTACT IT MUST STAY SERENE AND UNDISTURBED AS WELL WHICH BRINGS US BACK TO THE LOONS WHEN TOM FIORE ONE OF THE PARK'S MOST ACCOMPLISHED BIRDWATCHERS ARRIVED AT THE RESERVOIR TO CHECK OUT THE ACTION ON THE MORNING OF APRIL 9 THE EARLY FOG HAD NOT QUITE DISSIPATED PERHAPS THAT'S WHY HE THOUGHT FOR A MOMENT THAT THE BIRD HE SAW SWIMMING AND DIVING ABOUT 200 YARDS FROM THE SOUTH SIDE OF THE RESERVOIR WAS A CORMORANT NO RARE BIRD THERE BUT THEN MR FIORE NOTICED A THICK BLACK BILL HELD FAIRLY LEVEL WITH THE WATER CORMORANTS HAVE YELLOW BILLS AND USUALLY KEEP THEM SLANTING UPWARD BESIDES CORMORANTS ARE SOLIDLY BLACK AS THE FOG LIFTED MR FIORE COULD SEE THAT THIS BIRD HAD A BLACKANDWHITECHECKERED BACK AS WELL AS A LOVELY BLACKANDWHITE NECKLACE OF MARKINGS AROUND ITS NECK IT WAS A LOON JUST A YEAR EARLIER A NUMBER OF THESE REMARKABLE CREATURES HAD PAID THEIR FIRST VISIT EVER TO THE RESERVOIR BUT THAT COULD HAVE BEEN A ONCEINALIFETIME ABERRATION A MARVELOUS THOUGHT NOW OCCURRED TO MR FIORE SINCE LOONS NORMALLY MAKE THE SAME MIGRATORY STOPS YEAR AFTER YEAR PERHAPS THEY WOULD BECOME REGULAR CENTRAL PARK VISITORS DURING THE SECOND AND THIRD WEEKS OF APRIL MORE LOONS FLEW IN UNTIL THERE WAS A TOTAL OF 10 NOTED ON APRIL 15 AND WHILE LOONS TAKE ON A DRAB GRAYISH COLOR DURING THE WINTER MONTHS ALL 10 BIRDS WERE SPORTING THEIR FLASHY BLACKANDWHITE BREEDING PLUMAGE THEY WERE A THRILLING SIGHT A FEW DAYS LATER AS MR FIORE ENTERED THE PARK THROUGH THE HUNTER'S GATE AT WEST 81ST STREET HE HEARD THE EERIE SOUND OF LOON LAUGHTER ONLY A SHORT WALK FROM THE MUSEUM OF NATURAL HISTORY AND ZABAR'S A FEW WEEKS LATER HOWEVER THE SHOW WAS OVER BY MAY 9 ALL THE LOONS HAD DEPARTED FOR THEIR BREEDING GROUNDS ISOLATED SPRUCESHADED LAKES IN NORTHERN NEW ENGLAND AND CANADA BUT THIS TURNED OUT TO BE ONLY ACT ONE OF THE RESERVOIR'S 1993 AVIAN REVUE ACCORDING TO THE BIRD REGISTER A COMPENDIUM OF SIGHTINGS THE PARK'S BIRDWATCHING COMMUNITY KEEPS IN THE LOEB BOATHOUSE A PAIR OF PIEDBILLED GREBES NINE BUFFLEHEADS FOUR RUDDY DUCKS EIGHT SHOVELLERS AND ANOTHER RARE VISITOR A SURF SCOTER WERE SEEN AT THE RESERVOIR IN THE PAST TWO WEEKS ALONE THIS BRINGS THE 1993 DUCK COUNT TO 16 SPECIES IN ADDITION TO FIVE TYPES OF GULLS AND AN OCCASIONAL GREAT BLUE HERON OR SNOWY EGRET ALL THIS ON TOP OF LAST SPRING'S LOONACY HAS INSPIRED PARK BIRDWATCHERS TO COME UP WITH A DIFFERENT ALTERNATIVE FOR THE FUTURE OF THE PARK'S LARGEST POND TURN IT INTO A BIRD SANCTUARY RETAIN A FENCE OF SOME SORT TO KEEP OUT STRAY DOGS OR HUMAN TRESPASSERS BUT REMOVE THE RIPRAP AT THE SHORELINE AND PUT IN PLANTS THAT PROVIDE FOOD AND COVER FOR SONGBIRDS AS WELL AS WATERFOWL BUT WILL AN AVIANFRIENDLY RESERVOIR REALLY DO ANYTHING TO ADVANCE THE SURVIVAL OF THE LOON PERHAPS THE PRESERVATION OF THIS STOPOVER POINT FOR A SMALL NUMBER OF LOONS WILL NOT HAVE A LARGE DIRECT EFFECT ON OVERALL LOON POPULATION BUT THE INDIRECT EFFECTS MAY STILL MAKE A DIFFERENCE I HAVE IN MIND THOSE POWERFUL AND INFLUENTIAL PEOPLE WITH WINDOWS ON THE PARK THE SIGHT OF A LOON MAKING A LONG SKITTERING LANDING ON THE RESERVOIR OR PERHAPS THE UNIQUE SOUND OF ITS WILD CACKLE OVER MANHATTAN ISLAND MIGHT INSPIRE SOME CAPTAIN OF INDUSTRY SOME MIGHTY MOGUL OR MOGULESS TO DO SOMETHING TO FURTHER THE LOON CAUSE PERHAPS BY MAKING A MAJOR CONTRIBUTION TO THE NORTH AMERICAN LOON FUND PARTLY DUE TO THE EFFORTS OF THIS ORGANIZATION THE ENVIRONMENTAL PROTECTION AGENCY HAS JUST BANNED THE MANUFACTURE AND DISTRIBUTION OF LEAD FISHING SINKERS THROUGHOUT THE US AND THERE IS MORE TO BE DONE MEANWHILE THE LOCALLY SOJOURNING LOONS MAY HELP SAVE THE RESERVOIR AS A WILDLIFE PRESERVE AS JUDITH MCINTYRE PROFESSOR OF BIOLOGY AT UTICA COLLEGE NY AND AUTHOR OF COMMON LOONS SPIRIT OF NORTHERN LAKES SEES IT THE PRESENCE OF LOONS AT THE CENTRAL PARK RESERVOIR IS ENOUGH TO JUSTIFY ITS CONTINUING UNDISTURBED EXISTENCE LOONS IN THE HEART OF NEW YORK CITY HOW AMAZING SHE EXCLAIMED IN A RECENT TELEPHONE INTERVIEW PEOPLE GO HUNDREDS OF MILES INTO THE WILDERNESS TO SEE AND HEAR THESE BEAUTIFUL BIRDS IF THE LOONS ARE WILLING TO STOP DURING MIGRATION AND SHARE THEIR CALLS AND BEAUTY WITH THE CITIZENS OF NEW YORK CITY SURELY THOSE CITIZENS CAN MAINTAIN THEIR RESERVOIR AS A REFUGE FOR THE LOONS MS WINN IS A NEW YORK WRITER SEE RELATED LETTER LETTERS TO THE EDITOR LOONS WERE TOURISTS EARLY IN THE CENTURY WSJ NOV 19 1993 9311020164 YY93 MM11 9311240036 931124 TEXAS JOURNAL AND WE THOUGHT SHE WAS REFERRING TO TURKEY PARTS BY ANDREA GERLIN DALLAS CUSTOMERS CALLING THE TURKEY HOT LINE AT SONNY BRYAN'S SMOKEHOUSES HAVE BEEN GETTING SOMETHING HOTTER THAN THEY EXPECTED THE RESTAURANT CHAIN A DALLAS INSTITUTION IS SELLING SMOKED TURKEYS FOR THE HOLIDAYS THROUGH AN 800 NUMBER SOMETHING IT HAD SUCCESS WITH IN 1991 BUT PUT ON HOLD LAST YEAR BECAUSE IT WAS IN THE MIDDLE OF A BIG EXPANSION NOW THE BIRDS ARE BACK AND THEY ARE AGAIN A HIT AT LEAST 40 CUSTOMERS WHO HAVE RECEIVED TURKEYS THIS FALL HAVE CALLED THE NUMBER ON THE DELIVERY BOX TO ORDER MORE AFTER THE 1991 HOLIDAYS HOWEVER THE COMPANY'S OLD 800 NUMBER THE ONE ON THE BOX WAS REASSIGNED TO A PHONE SEX LINE INSTEAD OF A TUMMYFUL CALLERS GET AN EARFUL A KITTENISH VOICE INSTRUCTS THOSE WHO WANT MORE TITILLATION TO DIAL A 900 NUMBER AND HAVE THEIR CREDIT CARDS READY ANGRY CUSTOMERS REPORTED THE PROBLEM TO SONNY BRYAN'S IT WAS THE WILDEST THING EXECUTIVE VICE PRESIDENT TIM RUYS SAYS OF THE CALLS THAT POURED IN TO THE RESTAURANT ONE CALLER HE SAYS DESCRIBED THE PHONE SEX MESSAGE AS HOT AND NASTY THE RESTAURANT HAS SINCE ORDERED NEW BOXES UNTIL THEY ARRIVE NOTICES WITH THE NEW NUMBER ARE BEING SLIPPED INSIDE THE OLD BOXES BUT SOME CUSTOMERS MIGHT STILL HAVE A SHOCK IN STORE FOR THEM THE RESTAURANT SAYS IT HAS ALREADY SHIPPED 200 BOXES WITH ONLY THE OLD NUMBER AND NO WE WON'T GIVE THE NUMBER 9311240033 931124 TREASURY PLANS TO RAISE ABOUT 278 BILLION ON SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO RAISE ABOUT 278 BILLION IN FRESH CASH MONDAY WITH THE SALE OF ABOUT 2680 BILLION IN SHORTTERM BILLS TO REDEEM 2401 BILLION IN MATURING BILLS THE SALE AMOUNT IS DOWN FROM THE RECORD 2760 BILLION AT THE PREVIOUS WEEKLY TREASURY BILL AUCTION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS WHICH WILL BE DATED DEC 2 AND WILL MATURE MARCH 3 1994 AND JUNE 2 1994 COMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM DENOMINATIONS OF 10000 MUST BE RECEIVED BY 1 PM EST ON MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794J39 AND THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794K86 9311240032 931124 FINANCING BUSINESS PACIFICORP PACIFICORP PORTLAND ORE REGISTERED A SHELF OFFERING FOR UP TO 850 MILLION OF FIRSTMORTGAGE AND COLLATERAL BONDS AND COMMON STOCK IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE ELECTRIC UTILITY AND PHONE COMPANY SAID PROCEEDS FROM THE OFFERING WILL BE USED TO REPAY SHORTTERM DEBT OR MAY BE APPLIED TO UTILITY ASSET PURCHASES NEW CONSTRUCTION OR OTHER CORPORATE PURPOSES NO UNDERWRITERS WERE LISTED IN THE FILING 9311240030 931124 EDUCATION ALTERNATIVES SIGNS FIVEYEAR DEAL FOR BALTIMORE SCHOOL MINNEAPOLIS EDUCATION ALTERNATIVES INC SAID IT SIGNED A FIVEYEAR CONTRACT TO PROVIDE MANAGEMENT SERVICES FOR BALTIMORE CITY COLLEGE HIGH SCHOOL UNDER THE TERMS OF THE PACT EDUCATION ALTERNATIVES IS TO RECEIVE THE DISTRICT'S AVERAGE FULLTIME EQUIVALENT AMOUNT 5918 PER STUDENT YEARLY FOR EACH OF THE COLLEGE PREPARATORY SCHOOL'S ABOUT 1098 STUDENTS MANAGEMENT SERVICES WILL BEGIN AFTER THE AGREEMENT HAS BEEN REVIEWED AND ADOPTED BY BALTIMORE'S BOARD OF ESTIMATES THE COMPANY SAID BALTIMORE CITY COLLEGE HIGH IS ONE OF 30 SCHOOLS IN BALTIMORE TO BE DESIGNATED ENTERPRISE SCHOOLS SUCH SCHOOLS ARE PARTICIPANTS IN AN INITIATIVE FOR SITEBASED MANAGEMENT RECENTLY BEGUN BY THE CITY SCHOOL DISTRICT ADMINISTRATORS OF THESE SCHOOLS HAVE THE AUTHORITY TO MANAGE THEIR OWN EDUCATIONAL PROGRAMS FINANCIAL RESOURCES AND PHYSICAL FACILITIES THEY ALSO HAVE THE ABILITY TO CONTRACT OUT FOR THESE SERVICES EDUCATIONAL ALTERNATIVES SAID THE COMPANY CURRENTLY MANAGES OR PROVIDES CONSULTING SERVICES TO 14 SCHOOLS UNDER MANAGEMENT CONTRACTS WITH A TOTAL ENROLLMENT EXCEEDING 7700 STUDENTS IN MID1992 IT AGREED TO MANAGE NINE BALTIMORE ELEMENTARY AND JUNIOR HIGH SCHOOLS IN POOR INNERCITY COMMUNITIES EDUCATION ALTERNATIVES BELIEVES IT CAN MANAGE PUBLIC SCHOOLS MORE EFFICIENTLY WITH THE UNDERSTANDING THAT IT WILL PROFIT FROM SOME OF THE SAVINGS THAT PERSPECTIVE DIFFERENTIATES IT FROM WHITTLE COMMUNICATIONS INC WHICH IS CONSTRUCTING A NETWORK OF FORPROFIT PRIVATE SCHOOLS BALTIMORE CITY COLLEGE HIGH IS THE FIRST HIGH SCHOOL THE COMPANY HAS BEEN CONTRACTED TO MANAGE 9311240029 931124 PEPPERAND SALT THAT PATENT RIGHT IS ENDING ONE SOLACE THOUGH LEAVES ME EXCITED THIS VERSE HAS NOW BEEN COPYRIGHTED I ALWAYS START WITH A SMILE FOR A QUARTER OF A MILE CURMUDGEON COMPULSIVE GRUMBLER 9311240028 931124 BUSINESS BRIEF MACANDREWS & FORBES HOLDINGS INC WATERSPORTS UNITS FOLDED INTO ONE NEW SUBSIDIARY MACANDREWS & FORBES HOLDINGS INC NEW YORK COMBINED FOUR OF ITS WATERSPORTS RECREATION UNITS INTO ONE ENTITY AND SAID IT WOULD ACTIVELY PURSUE ACQUISITIONS TO DEVELOP THE NEW BUSINESS THE NEW UNIT MERIDIAN SPORTS INC WILL CONSIST OF BOAT BUILDERS BOSTON WHALER MASTERCRAFT AND SKEETER AND WATERSKI MAKER O'BRIEN MACANDREWS & FORBES SAID THE COMBINED UNITS WILL HAVE 120 MILLION IN SALES THIS YEAR MERIDIAN SPORTS IS MADE UP PRIMARILY OF FORMER COLEMAN CO OPERATIONS WITH THE EXCEPTION OF BOSTON WHALER PURCHASED FROM REEBOK INTERNATIONAL LTD IN JULY 1993 CLOSELY HELD MACANDREW & FORBES CONTROLLED BY INVESTOR RONALD PERELMAN ACQUIRED COLEMAN CO FOR ABOUT 545 MILLION IN APRIL 1989 A SPOKESMAN SAID LIKELY ACQUISITION TARGETS INCLUDE RELATED WATERSPORTS BUSINESSES THOUGH HE ADDED THAT THE COMPANY WOULDN'T CONFINE ITSELF TO THAT PART OF THE RECREATION SPORTS MARKETPLACE 9311240026 931124 BUSINESS BRIEF P&G PLANS TO EXPAND ITS PRESENCE IN CHINA WITH 3 JOINT VENTURES CINCINNATI PROCTER & GAMBLE CO EXPANDING ITS PRESENCE IN CHINA SAID IT AGREED TO ESTABLISH THREE JOINT VENTURES THERE TWO WILL BE IN LAUNDRY DETERGENTS THE THIRD IN BAR SOAP TERMS WERE NOT DISCLOSED P&G SAID IT WILL HAVE A CONTROLLING INTEREST IN THE JOINT VENTURES AS WELL AS MANAGEMENT RESPONSIBILITY FOR THEM THE LAUNDRY JOINT VENTURES WILL BE WITH HUTCHISON WHAMPOA LTD A HONG KONGBASED COMPANY THAT IS A PARTNER WITH P&G IN ANOTHER JOINT VENTURE IN CHINA AND WITH TWO LEADING STATEOWNED LAUNDRY AND CLEANING FACTORIES ONE OF THOSE FACTORIES IS BEIJING NO 2 DAILY USE CHEMICAL FACTORY OF BEIJING THE OTHER IS THE CHENGDU SYNTHETIC DETERGENT FACTORY LOCATED IN THE CENTRAL CHINA PROVINCE OF SICHUAN UNDER THE ACCORD THE JOINT VENTURES WILL TAKE OVER THE TWO FACTORIES' DETERGENTMAKING FACILITIES AND THEIR LAUNDRY BRANDS WHICH HAVE TOP MARKET SHARES IN THEIR HOME PROVINCES P&G SAID THE BARSOAP JOINT VENTURE WILL BE A PARTNERSHIP WITH HUTCHISON WHAMPOA AND THE STATEOWNED TIANJIN TOILET SOAP FACTORY WHICH IS IN TIANJIN NEAR BEIJING IN NORTHERN CHINA THE JOINT VENTURE WILL TAKE OVER SOME SOAPPRODUCTION FACILITIES AT THAT FACTORY WHICH HAS BEEN PRODUCING SAFEGUARD SOAP FOR P&G FOR 18 MONTHS ON A CONTRACT BASIS WE CONTINUE TO SEE EXCELLENT PROFIT POTENTIAL IN CHINA AND THESE NEWEST AGREEMENTS UNDERSCORE OUR CONFIDENCE IN THIS FASTGROWING MARKET SAID JOHN E PEPPER PRESIDENT OF P&G P&G BEGAN IN CHINA IN 1988 WITH A HEALTH AND BEAUTYCARE JOINT VENTURE ALSO WITH HUTCHISON WHAMPOA IN GUANGZHOU WHICH IS IN THE SOUTHERN PROVINCE OF GUANGDONG 9311240025 931124 NEVADA POWER EARLY RETIREMENT LAS VEGAS NEVADA POWER CO SAID THAT 109 EMPLOYEES OR ABOUT 6 OF ITS WORK FORCE ACCEPTED A VOLUNTARY EARLY RETIREMENT PACKAGE THE RETIREMENT PROGRAM IS PART OF A COMPREHENSIVE ORGANIZATIONAL STUDY THE UTILITY SAID A COMPANY SPOKESMAN SAID THAT STUDY MAY OR MAY NOT RESULT IN FURTHER WORKFORCE REDUCTIONS THE DECISIONS HE SAID WILL BE MADE BY YEAR END 9311240024 931124 GREYHOUND LINES TRAFFIC IS FLAT DALLAS GREYHOUND LINES INC SAID ITS PASSENGER TRAFFIC WAS FLAT IN OCTOBER WHEN THE BUS COMPANY RECORDED 4381 MILLION REVENUE PASSENGER MILES COMPARED WITH 4365 MILLION IN OCTOBER 1992 A REVENUE PASSENGER MILE IS ONE PASSENGER TRAVELING ONE MILE GREYHOUND SAID IT CARRIED 7 FEWER PASSENGERS WHICH WAS OFFSET BY AN INCREASE IN AVERAGE TRIP LENGTH OF 81 9311240023 931124 TECHNOLOGY FDA FINES DIVISION OF PFIZER FOR ALTERING MARKETING DRUG PUMP WASHINGTON THE FOOD AND DRUG ADMINISTRATION FINED A PFIZER INC MEDICALDEVICE COMPANY 290000 FOR MARKETING A DRUG PUMP THAT WAS MODIFIED WITHOUT APPROVAL THE FINE ON INFUSAID INC OF NORWOOD MASS IS THE FIRST IMPOSED BY THE FDA UNDER THE SAFE MEDICAL DEVICES ACT OF 1990 INFUSAID A DIVISION OF PFIZER INC'S PFIZER HOSPITAL PRODUCTS GROUP WAS CITED FOR ALTERING THE DESIGN MATERIAL AND PACKAGING OF ITS MODEL 400 IMPLANTABLE INFUSION PUMP WITHOUT GAINING NEW FDA APPROVAL AN AGENCY INSPECTION ALSO FOUND THE COMPANY FAILED TO MEET ITS MANUFACTURING SPECIFICATIONS THE UNAPPROVED MODIFIED DEVICES LEAKED CAUSING 10 COMPLAINTS OF PRODUCT FAILURE OR PATIENT INJURY THE FDA SAID INFUSAID RECALLED ALL MODEL 400 PUMPS IN DEC 1991 THE FDA SAID THOSE NOW ON THE MARKET HAVE BEEN REDESIGNED AND APPROVED BY THE AGENCY INFUSAID HAS AGREED TO PAY THE FINE WITHOUT ADMITTING LIABILITY WRONGDOING OR ILLEGAL CONDUCT THE FDA SAID IN NEW YORK PFIZER SAID PROBLEMS WITH ITS INFUSAID UNIT'S PUMP WERE RESTRICTED TO PRODUCTS SHIPPED BETWEEN NOVEMBER 1990 AND NOVEMBER 1991 PFIZER SAID INFUSAID HAS CORRECTED THE PROBLEMS AND NOW HAS FDA APPROVAL TO MARKET THE PUMP THE COMPANY SAID THE PUMP USED IN TREATING A VARIETY OF ILLNESSES IS BEING TESTED FOR USE IN DIABETES AND CENTRAL NERVOUS SYSTEM DISORDERS 9311240022 931124 SOUTH KOREAN OUTPUT IS UP SEOUL SOUTH KOREA SOUTH KOREA'S GROSS NATIONAL PRODUCT EXPANDED 65 IN THE THIRD QUARTER FROM A YEAR EARLIER AS A RESULT OF SOLID GAINS IN MANUFACTURING AND CONSTRUCTION BANK OF KOREA SAID THE THIRDQUARTER GAIN IN THE MEASURE OF TOTAL OUTPUT OF GOODS AND SERVICES FOLLOWED THE ADVANCES OF 34 AND 45 EACH IN THE FIRST AND SECOND QUARTERS OF THIS YEAR GIVING RISE TO HOPES THAT THE NATION'S ECONOMY IS RECOVERING 9311240021 931124 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WHILE MOST PEOPLE HAVE BEEN BUSY TENDING TO OTHER KNITTING PRESIDENT CLINTON HAS QUIETLY REACHED A CRUCIAL JUNCTURE IN HIS QUEST TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM IN ESSENCE THE PRESIDENT MUST DECIDE SOON WHETHER TO MOVE TO HIS LEFT OR TO HIS RIGHT TO WIN ALLIES FOR NEXT YEAR'S HEALTH DEBATE SOME IN THE CLINTON CAMP CLEARLY WANT TO MOVE LEFT BUT THAT COULD BE A MISCALCULATION THAT COSTS THE PRESIDENT THE SUPPORT OF FRIENDS WHOSE HELP HE'LL NEED BADLY TO SELL REFORM TO MIDDLE AMERICA THIS ISN'T JUST SOME INSIDEBASEBALL DEBATE THE WAY THE WHITE HOUSE DECIDES THIS TACTICAL QUESTION WILL SAY MUCH ABOUT THE KIND OF PROGRAM IT GETS HOW EXPENSIVE HOW RELIANT ON GOVERNMENT PROGRAMS AND HOW AMBITIOUS IN ITS TIMETABLE FOR CHANGE TO PICTURE THE SITUATION IMAGINE A POLICESTATION LINEUP OF POLITICIANS HOLDING HEALTH PLANS EACH PLAN BEARING SOME VAGUE RESEMBLANCE TO THE OTHERS IN THE CENTER STANDS PRESIDENT CLINTON WITH HIS HEALTH PLAN IT PROMISES TO PROVIDE COVERAGE TO ALL AMERICANS BY 1998 THROUGH A COMBINATION OF MARKET FORCES AND GOVERNMENT INTERVENTION COMPETITION WOULD DRIVE DOWN COSTS AS AMERICANS JOIN NEW REGIONAL ALLIANCES TO SHOP FOR INSURANCE AND HEALTH SERVICES GOVERNMENT WOULD COMPEL EMPLOYERS TO PAY 80 OF EMPLOYEE COSTS OFFER SUBSIDIES TO SMALL BUSINESSES COVER THE UNEMPLOYED AND CONTROL COSTS BY CAPPING INSURANCE PREMIUMS TO THE PRESIDENT'S LEFT STANDS REP JIM MCDERMOTT OF WASHINGTON STATE WITH HIS SINGLEPAYER ALTERNATIVE ITS BEAUTY IS ITS SIMPLICITY GOVERNMENT WOULD BE PUT IN CHARGE OF A NATIONAL HEALTHCARE SYSTEM FINANCED THROUGH A PAYROLL TAX AND COVERING EVERYBODY TO THE PRESIDENT'S RIGHT STAND THE CONSERVATIVE DEMOCRATS REP JIM COOPER OF TENNESSEE AND SEN JOHN BREAUX OF LOUISIANA THEY OFFER A MOREMODEST PLAN RELYING EXCLUSIVELY ON MARKET FORCES AND TAX CHANGES TO DRIVE DOWN COSTS EMPLOYERS AND INDIVIDUALS WOULD JOIN PURCHASING COOPERATIVES AND THE TAX CODE WOULD BE ALTERED TO CREATE POWERFUL INCENTIVES FOR THEM TO BUY THE MOST COSTEFFICIENT PLANS COVERAGE WOULDN'T BE GUARANTEED FOR EVERYBODY LOOKING FOR A PLACE IN THIS LINEUP IS LIBERAL REPUBLICAN SEN JOHN CHAFEE OF RHODE ISLAND WHOSE PLAN IS HARD TO PLACE ON THE SPECTRUM LIKE THE DEMOCRATIC LIBERALS AND PRESIDENT CLINTON HE PROMISES UNIVERSAL COVERAGE BUT HE DOESN'T REQUIRE EMPLOYERS OR THE GOVERNMENT TO PROVIDE IT INSTEAD INDIVIDUALS WOULD BE REQUIRED TO FIND SOME KIND OF INSURANCE MANY WITH THE HELP OF GOVERNMENT SUBSIDIES ONE THING IS CERTAIN THE NATION'S NEW HEALTH PLAN WILL BE SOME BLEND OF ALL THESE APPROACHES AND THEREIN LIES PRESIDENT CLINTON'S CHOICE MOVE TO THE LEFT TO ALIGN WITH THE SINGLEPAYER CROWD AND THEIR PASSION FOR BIG CHANGE AND UNIVERSAL COVERAGE OR MOVE RIGHT TO TEAM UP WITH THE NEW DEMOCRATS LEERY OF TOO MUCH GOVERNMENT INTERVENTION SOME CLINTONITES POINT TO THE 93 HOUSE MEMBERS WHO COSPONSOR THE SINGLEPAYER PLAN AND THE 100 WHO BACK THE CLINTON PLAN AND ARGUE THAT THE ACTION IS ON THE CENTERLEFT THAT'S AT LEAST A LITTLE MISLEADING THOUGH BECAUSE SOME LAWMAKERS ARE BACKING BOTH MEASURES IN ONE POSSIBLE SIGN OF A MOVE TO THE LEFT THE WHITE HOUSE IS CONSIDERING BRINGING ON HAROLD ICKES A LIBERAL ACTIVIST WHO IS ANATHEMA TO MANY CONSERVATIVE DEMOCRATS TO TAKE CHARGE OF SELLING HEALTH CARE ON CAPITOL HILL SOME CLINTONITES DREAM OF FORMING A WINNING COALITION BY SOMEHOW LINKING TOGETHER MR CLINTON SEN CHAFEE AND THE SINGLEPAYERS ALL OF WHOM ARE AT LEAST UNITED IN THEIR COMMITMENT TO PROVIDE UNIVERSAL COVERAGE BUT THAT COULD LEAVE REP COOPER AND SEN BREAUX STANDING OFF TO THE SIDE THEY MAKE A COMPELLING ARGUMENT THAT THEIR APPROACH WHILE UNSATISFYING TO THE WHITE HOUSE RIGHT NOW AT LEAST PROVIDES A VEHICLE FOR PULLING TOGETHER CENTRIST DEMOCRATS AND REPUBLICANS WHOSE SUPPORT WILL BE ESSENTIAL BEFORE THIS DRAMA IS OVER THE COALITION THAT'S OUT THERE TO PASS THE BILL IS A CENTRIST COALITION NOT A CENTERLEFT COALITION ARGUES SEN BREAUX AND REP COOPER MAINTAINS THAT WHITE HOUSE DEMANDS FOR UNIVERSAL COVERAGE CAN BE MET BY EXPANDING HIS APPROACH ONCE COST SAVINGS KICK IN POLITICALLY THE KEY POINT IS THIS WHILE AMERICANS ARE ENTHUSIASTIC ABOUT PRESIDENT CLINTON'S CALL FOR A NEW HEALTH SYSTEM THEY GET SCARED IF THEY SENSE A GOVERNMENT ROLE TOO INTRUSIVE OR EXPENSIVE COOPERATIVE CONSERVATIVE DEMOCRATS CAN HELP DAMP THOSE FEARS WHITE HOUSE CHIEF OF STAFF MACK MCLARTY SAYS THE WHITE HOUSE HOPES FOR A CONSENSUS IN WHICH MANY OF THE ASPECTS OF THE CONSERVATIVE DEMOCRATS' APPROACH ARE INCLUDED BY WHATEVER ROUTE PRESIDENT CLINTON WOULD DO WELL TO KEEP HIS PARTY'S RIGHT FLANK STANDING WITH HIM 9311240020 931124 INTERNATIONAL UK RATE CUT GIVEN AS BALM FOR TAX BOOST BY NICHOLAS BRAY AND GLENN WHITNEY STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON THE BANK OF ENGLAND LOWERED ITS BASE LENDING RATE TO 55 FROM 6 HOPING TO GIVE CONSUMER CONFIDENCE A BOOST BEFORE THE TREASURY UNVEILS A PACKAGE OF TAX INCREASES NEXT WEEK THE CUT BRITAIN'S FIRST SINCE JANUARY TOOK UK LENDING RATES TO THEIR LOWEST LEVEL SINCE 1977 BOLSTER THE ECONOMY IN THE FACE OF EXPECTED TAX INCREASES OF 15 BILLION 221 BILLION TO 3 BILLION THAT CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE IS LIKELY TO ANNOUNCE WHEN HE DISCLOSES HIS FIRST BUDGET ON TUESDAY TRADITIONALLY THE BANK OF ENGLAND RAISES OR LOWERS INTEREST RATES ON INSTRUCTIONS OF THE TREASURY COMING ON TOP OF A 675 BILLION PACKAGE OF TAX INCREASES ALREADY DUE TO TAKE EFFECT IN APRIL THE ADDITIONAL MEASURES WILL INEVITABLY DAMP BRITISH CONSUMER DEMAND AT A TIME OF FALTERING ECONOMIC CONFIDENCE IN CONTINENTAL EUROPE THE TAX INCREASES ARE AIMED AT CURBING A SOARING PUBLIC SECTOR DEFICIT SCHEDULED TO REACH 49 BILLION THIS YEAR WHILE THE TIMING WAS A FEW DAYS SOONER THAN EXPECTED THE REDUCTION IN LENDING RATES WAS SMALLER THAN THE ONEPOINT CUT THAT MANY ECONOMISTS SOUGHT PROMPTING CRITICISM FROM BUSINESS LEADERS THAT THE GOVERNMENT SHOULD HAVE ACTED MORE AGGRESSIVELY WITH INFLATION RUNNING AT 14 AND FISCAL TIGHTENING INEVITABLE A BOLDER MOVE IS NECESSARY TO MAINTAIN CONSUMER DEMAND AND AVOID STRANGLING THE FRAGILE RECOVERY SAID RICHARD BROWN DEPUTY DIRECTOR GENERAL OF THE BRITISH CHAMBERS OF COMMERCE STERLING RESPONDED BY RISING REFLECTING TRADERS' RELIEF THAT THE RATE CUT WASN'T BIGGER IN LATE TRADING IN LONDON YESTERDAY THE POUND WAS QUOTED AT 14860 UP FROM 14755 LATE ON MONDAY IN NEW YORK STERLING ALSO RALLIED AGAINST THE MARK TO 25278 MARKS FROM 25134 MARKS ON THE LONDON STOCK EXCHANGE REACTION WAS LESS ENTHUSIASTIC AFTER AN EARLY RALLY ON EXPECTATIONS THAT THE RATE CUT WOULD HELP TO KEEP BRITAIN'S NASCENT ECONOMIC RECOVERY ON TRACK THE FTSE 100 SHARE INDEX ENDED YESTERDAY AT 30693 DOWN 13 POINTS FROM MONDAY'S CLOSE OTHER EUROPEAN STOCK MARKETS HAD SIMILAR REACTIONS OF INITIAL EXCITEMENT THAT QUICKLY WORE OFF MR CLARKE JUSTIFIED THE RATE CUT ON THE BASIS OF BRITAIN'S LOW INFLATION RATE FLAT CONDITIONS IN THE UK HOUSING MARKET STERLING'S RELATIVELY STABLE EXCHANGE RATE AND THE DECLINING TREND IN EUROPEAN INTEREST RATES WEIGHING UP THESE FACTORS AND TAKING FULL ACCOUNT OF THE MEASURES I WILL ANNOUNCE IN THE BUDGET ON NOV 30 I HAVE DECIDED THAT A HALFPERCENTAGE POINT CUT IN INTEREST RATES IS WARRANTED HE SAID PUNDITS STILL ARE GUESSING ON THE CONTENTS OF MR CLARKE'S FIRST SUBSTANTIVE PACKAGE OF MEASURES SINCE TAKING OVER AS CHANCELLOR FROM NORMAN LAMONT IN MAY A SKILLED POLITICIAN MR CLARKE IS LIKELY TO GO SOME WAY TO RESPOND TO DEMANDS FROM THE RIGHT WING OF THE CONSERVATIVE PARTY FOR CUTS IN PUBLIC SPENDING TO HELP WITH THE DEFICIT SOME REVENUERAISING MEASURES SUCH AS A POSSIBLE ENDING OF TAX RELIEF ON HOME LOANS MAY BE ANNOUNCED NOW WITH AN IMPLEMENTATION DATE ONE OR TWO YEARS DOWN THE ROAD DEPENDING ON THE RECEPTION BY FINANCIAL MARKETS OF THE BUDGET MEASURES MEANWHILE YESTERDAY'S RELATIVELY MODEST REDUCTION OF INTEREST RATES WOULD STILL LEAVE ROOM FOR A FURTHER HALFPOINT CUT LATER THIS YEAR OR EARLY NEXT YEAR EVEN SO ECONOMISTS PREDICT INCREASES IN BOTH INDIRECT TAXATION FOR EXAMPLE IN DUTIES ON WINES AND SPIRITS AND DIRECT TAXATION INCLUDING SOME TIGHTENING OF THE SCREW FOR HIGHERRATE INCOMETAX PAYERS THE BUDGET WILL BE A FISCALLY RESTRICTIVE ONE SAID TREVOR WILLIAMS SENIOR ECONOMIST AT LLOYDS BANK PLC 9311240019 931124 UNIVERSITY IS CRITICIZED OVER MILKEN TEACHING ROLE LOS ANGELES A CALIFORNIA LEGISLATOR BLASTED THE UNIVERSITY OF CALIFORNIA FOR AN ARRANGEMENT WITH CONVICTED FINANCIER MICHAEL MILKEN WHO IS A GUEST LECTURER AT UCLA'S ANDERSON GRADUATE SCHOOL OF MANAGEMENT THE UNIVERSITY IS MISGUIDED IN ELEVATING A CONVICTED FELON TO A LEVEL OF RESPECTABILITY AND ACCEPTANCE BY HAVING THE PERSON FORMALLY TEACH A COURSE SEN PATRICK JOHNSTON WROTE UC PRESIDENT JACK PELTASON MR MILKEN IS PARTICIPATING IN A CORPORATE FINANCE COURSE THAT IS BEING TAPED BY HIS EDUCATIONAL NETWORK VENTURE CRITICISM OF THE UNIVERSITY HEATED UP LAST WEEK AFTER A SERIES OF DOONESBURY COMIC STRIPS LAMPOONING MR MILKEN'S TEACHING ROLE UCLA ASSOCIATE DEAN CAROL SCOTT SAID MR MILKEN'S PRESENCE IN THE CLASSROOM FUELED LIVELY DEBATE APPROPRIATE TO AN ACADEMIC INSTITUTION SHE SAID THE UNIVERSITY'S SHARE IN ANY PROFIT FROM THE TAPES WAS TO BE NEGOTIATED MR MILKEN FORMER HEAD OF THE JUNKBOND OPERATONS OF THE DEFUNCT DREXEL BURNHAM LAMBERT INVESTMENT FIRM WAS RELEASED FROM PRISON THIS YEAR AFTER SERVING TWO YEARS FOR SIX SECURITIESRELATED FELONIES HE IS INVOLVED IN EDUCATIONAL VENTURES AS PART OF HIS PROBATION'S COMMUNITYSERVICE REQUIREMENT 9311240018 931124 INTERNATIONAL BRIEF ALLIEDLYONS PLC PRETAX PROFIT ROSE 22 SALES BY 6 IN LATEST 28 WEEKS ALLIEDLYONS PLC SAID PRETAX PROFIT ROSE 22 IN THE 28 WEEKS ENDED SEPT 18 HELPED BY A DECLINE IN REORGANIZATION COSTS AND A 6 RISE IN SALES PRETAX PROFIT ROSE TO 285 MILLION 4204 MILLION FROM 234 MILLION AT THE CONCERN WHICH HAS INTERESTS IN WINES AND SPIRITS BREWING AND FOOD MANUFACTURING ALLIEDLYONS'S INTERIM DIVIDEND BOOST TO 730 PENCE A SHARE FROM 695 PENCE WAS IN LINE WITH EXPECTATIONS TOO CHAIRMAN MICHAEL JACKAMAN SAID IN A NEWS RELEASE THAT THE HALFYEAR RESULT WAS SOUND WITH TRADING PROFIT FROM BREWING AND WHOLESALING UP 11 AT 63 MILLION RESULTS FROM THIS DIVISION WERE BOOSTED THOUGH BY THE FIRSTTIME CONTRIBUTION OF A NEW VENTURE WITH CARLSBERG BREWERY BHD OF DENMARK SALES ROSE TO 273 BILLION FROM 257 BILLION 9311240017 931124 LEISURE & ARTS THEATER A GRAND CYRANO' DOC SIMON'S RETURN BY EDWIN WILSON NEW YORK WHEN HE CAME UPON A MUSICAL TREATMENT OF CYRANO DE BERGERAC JOOP VAN DEN ENDE A SUCCESSFUL DUTCH TELEVISION AND THEATER ENTREPRENEUR WHO PRODUCED THE PHANTOM OF THE OPERA AND LES MISERABLES IN HOLLAND HAD EVERY REASON TO BELIEVE HE HAD FOUND ANOTHER MEGAHIT LIKE PHANTOM AND LES MIS THE STORY OF CYRANO IS BASED ON A WELLKNOWN 19THCENTURY WORK EDMOND ROSTAND'S PLAY ABOUT A 17THCENTURY SWORDSMAN WITH A PREPOSTEROUS NOSE ALSO LIKE MR ENDE'S OTHER CASHCOW OPERETTAS THIS ONE IS A ROMANCE PAR EXCELLENCE WITH LAVISH SCENIC EFFECTS TO BEAT THE BAND IN THE NEW PRODUCTION AT THE NEIL SIMON THEATRE SCENE DESIGNER PAUL GALLIS AND LIGHTING DESIGNER REINIER TWEEBEEKE HAVE STAGE SETS RISING OUT OF THE FLOOR AND DROPPING FROM THE CEILING WE MOVE FROM BACKSTAGE AT AN OPERA HOUSE TO THE AUDIENCE OUT FRONT IN THE TWINKLING OF AN EYE A BATTLE SCENE HAS ENOUGH LIGHT FLASHES AND PERCUSSIVE EXPLOSIONS TO SEND ANY ENEMY SCURRYING MOST IMPRESSIVE OF ALL ARE THE COSTUMES DESIGNED BY YAN TAX WHICH IN THEIR ELEGANCE AND RICHNESS OF DETAIL ARE AS BEAUTIFUL AS ANY SEEN ON BROADWAY IN SOME TIME IN ADDITION TO A LAVISH PHYSICAL PRODUCTION MR VAN DEN ENDE AND HIS DIRECTOR EDDY HABBEMA HAVE ASSEMBLED A CAST WELL SUITED TO THE SPIRIT OF THE PIECE BILL VAN DIJK IS A DUTCHMAN WHO SPEAKS PERFECT ENGLISH AN ENERGETIC APPEALING CYRANO HE IS EQUALLY ADEPT AT VIRTUOSO SWORD PLAY AND AT DELIVERING RINGING BARITONE SOLOS ANNE RUNOLFSSON IS ATTRACTIVE AS CYRANO'S BELOVED ROXANNE AND HAS AN IMPRESSIVE VOICE AND PAUL ANTHONY STEWART IS JUST WHAT HIS RIVAL CHRISTIAN SHOULD BE FATUOUS AND IMPULSIVE WHILE MR HABBEMA HAS DIRECTED MOST SCENES TO PULL AT THE HEART STRINGS SEVERAL TURN OUT TO BE SURPRISINGLY HUMOROUS SO FAR SO GOOD BUT THESE SHOWS AFTER ALL ARE MUSICALS AND NOT ONLY THAT THEY ARE SUNGTHROUGH AN AWKWARD COINAGE DENOTING THAT ALL DIALOGUE IS SUNG RATHER THAN SPOKEN AD VAN DIJK'S SCORE IS SERVICEABLE AT BEST THANKS TO LUSH ORCHESTRATIONS AND AMPLIFICATIONS THE MUSIC FREQUENTLY SWEEPS TO GRAND CLIMAXES BUT THE MELODIES IT'S FAIR TO SAY DO NOT LINGER ON EVEN MORE OF A PROBLEM ARE THE WORDS FOR THESE TUNES AND RECITATIVES WRITTEN BY KOEN VAN DIJK AND SEVERAL ENGLISH LYRICISTS WHEN EVERY SYLLABLE EVEN IN MUNDANE EXCHANGES MUST BE SUNG IT LEADS TO RHYMES LIKE I'VE NO WAY OF KNOWING WHICH WAY THE WIND'S BLOWING OR YOU SEEM SO UNINSPIRED ARE YOU TIRED THOUGH I LISTENED CAREFULLY I CAN SAFELY SAY THAT I HEARD NOT A SINGLE SURPRISING RHYME OR TURN OF PHRASE ALL NIGHT MAYBE THIS WILL NOT MATTER AUDIENCES DO NOT COME TO A PLAY LIKE CYRANO THE MUSICAL TO BE CHALLENGED INTELLECTUALLY THEY COME TO BE SWEPT UP IN MANUFACTURED GRANDEUR AND EMOTION AND MR VAN DEN ENDE AND HIS COLLEAGUES HAVE DONE THEIR BEST TO MAKE THEM HAPPY FOR SOME YEARS NOW NEIL SIMON HAS BEEN WRITING IN A SERIOUS OR AT LEAST A SEMISERIOUS VEIN THERE WAS HIS AUTOBIOGRAPHICAL TRILOGY BRIGHTON BEACH MEMOIRS BILOXI BLUES AND BROADWAY BOUND AND PIECES LIKE LOST IN YONKERS AND JAKE'S WOMEN WITH HIS NEWEST OFFERING HOWEVER LAUGHTER ON THE 23RD FLOOR AT THE RICHARD RODGERS THEATRE HE RETURNS TO THE KIND OF ALLOUT COMEDY HE WROTE IN THE OLD DAYS PLAYS LIKE BAREFOOT IN THE PARK THE ODD COUPLE AND THE SUNSHINE BOYS IN FACT THIS NEW LAUGHFEST HAS ITS ORIGINS IN AN EVEN EARLIER STAGE IN MR SIMON'S CAREER WHEN HE WORKED FOR SID CAESAR'S TELEVISION PROGRAM YOUR SHOW OF SHOWS AS A WRITER TOGETHER WITH MEL BROOKS CARL REINER AND LARRY GELBART LAUGHTER ON THE 23RD FLOOR IS MR SIMON'S RECREATION OF THOSE HALCYON DAYS WHEN THE WRITERS GATHERED TO CREATE EACH WEEK'S SCRIPT THE PIECE COULD WELL BE SUBTITLED NINE CHARACTERS IN SEARCH OF A PLOT BECAUSE THERE IS NONE WHAT WE HAVE INSTEAD IS UNABASHED UNAPOLOGETIC COMIC WRITING THE SID CAESAR CHARACTER MAX PRINCE NATHAN LANE WHO IS GIVEN TO APOPLECTIC EXPLOSIONS IS SURROUNDED BY A STABLE OF IDIOSYNCRATIC WRITERS MILT LEWIS J STADLEN THE COMPULSIVE WOULDBE CLOTHES HORSE VAL MARK LINNBAKER THE FOREIGN WORRIER CAROL RANDY GRAFF THE OBLIGATORY FEMALE KENNY JOHN SLATTERY THE IVYLEAGUE PROTOTYPE EACH HAS HIS POINT OF VIEW AND EACH IS SUPPLIED BY MR SIMON WITH A STRING OF RUNNING GAGS AND ONELINERS ON TOP OF THIS JERRY ZAKS HAS DIRECTED THE PRODUCTION SO AS TO GET THE MAXIMUM NUMBER OF LAUGHS PER MINUTE NOW WITH THE DIALOGUE NOW WITH PHYSICAL COMEDY SOMETIMES WITH BOTH THERE IS A ROUTINE ABOUT A WHITE SUIT THAT BUILDS AND BUILDS FOR ABOUT 15 MINUTES OF UNBRIDLED HILARITY THERE ARE ALSO A FEW EXCESSES IRA RON ORBACH IS A HYPOCHONDRIAC WHOSE DESCRIPTIONS OF HIS WOES REACH THE POINT OF ABSOLUTE TEDIUM FOR THE MOST PART THOUGH LAUGHTER ON THE 23RD FLOOR IS OLDSTYLE COMEDY FAST AND FURIOUS WITHOUT A THOUGHT IN ITS HEAD EXCEPT TO ENTERTAIN 9311240016 931124 WESTCORP'S REPURCHASE ACTION IRVINE CALIF WESTCORP INC SAID ITS BOARD APPROVED THE REPURCHASE OF UP TO ONE MILLION OF ITS COMMON SHARES OR 46 OF THE 219 MILLION SHARES OUTSTANDING HOWEVER THE FINANCIALSERVICES HOLDING COMPANY SAID IT DOESN'T PLAN TO REPURCHASE STOCK AT PRESENT THE OPENENDED RESOLUTION WAS PASSED WESTCORP SAID SO ITS BOARD'S EXECUTIVE COMMITTEE COULD ACT SWIFTLY IF NEEDED 9311240014 931124 HAFT SUES HIS FATHER BROTHER AGAIN OVER DART GROUP'S CONTROL NEW YORK ROBERT HAFT THE TOPPLED HEIR TO THE HAFT FAMILY EMPIRE AND DART GROUP CORP AGAIN SUED HIS ESTRANGED FATHER AND BROTHER SEEKING TO VOID AGREEMENTS GIVING HIS YOUNGER BROTHER RONALD CONTROL OF THE LANDOVER MD COMPANY THE DERIVATIVE SUIT WAS FILED IN DELAWARE CHANCERY COURT ON BEHALF OF DART AND ITS SHAREHOLDERS BY ROBERT HAFT WHO WAS OUSTED THIS SUMMER BY HIS FATHER HERBERT AS PRESIDENT AND CHIEF OPERATING OFFICER OF DART GROUP AND CHAIRMAN OF CROWN BOOKS CORP THE LAWSUIT SEEKS TO SET ASIDE AGREEMENTS THIS SUMMER IN WHICH THE ELDER MR HAFT DART CHAIRMAN SOLD HIS 57 VOTING INTEREST IN THE COMPANY TO HIS YOUNGER SON RONALD AND GRANTED HIM OPTIONS WHICH IF EXERCISED WOULD GIVE RONALD CONTROL OVER 79 OF THE COMPANY THE LAWSUIT CHARGES THAT THE TOTAL VALUE OF THE VOTING STOCK COVERED BY THE OPTION WAS AT LEAST 100 MILLION MORE THAN THE COST TO RONALD OF EXERCISING THE OPTION THE SUIT ALSO NAMES DART DIRECTORS DOUGLAS M BREGMAN AND BONITA A WILSON WHO TOGETHER WITH HERBERT HAFT REPLACED A FIVEMEMBER BOARD OUSTED BY THE ELDER MR HAFT IN JUNE THE SUIT IS THE LATEST IN A FLURRY OF LEGAL DARTS EXCHANGED BY HAFTFAMILY MEMBERS SINCE THEIR FESTERING FEUD BURST INTO PUBLIC IN JUNE MICHAEL KLEIN A WASHINGTON DC ATTORNEY FOR DART AND HERBERT HAFT TERSELY REPLIED THAT IT'S REALLY TIME THAT ROBERT HAFT GET ON WITH HIS LIFE AND DO SOMETHING CONSTRUCTIVE ADDING THAT IT'S BEEN FIVE MONTHS SINCE ROBERT WAS FINISHED AS A DIRECTOR AND OFFICER MR KLEIN SAID THAT THE LATEST CHARGES MIRROR A LAWSUIT FILED IN SEPTEMBER BY TWO OTHER DART SHAREHOLDERS AND ECHO EARLIER LAWSUITS FILED BY ROBERT HAFT 9311240013 931124 WHO'S NEWS DATAFLEX CORP DATAFLEX CORP EDISON NJ JOHN G RAOS 44 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF HANSON INDUSTRIES THE US UNIT OF BRITISHAMERICAN INDUSTRIAL GROUP HANSON PLC WAS NAMED A DIRECTOR OF THIS DESKTOPCOMPUTING SOLUTIONS AND SERVICES COMPANY INCREASING THE BOARD TO SIX MEMBERS 9311240012 931124 US PENCIL MAKERS POINT TO THAI CHINESE IMPORTS MARLTON NJ A GROUP REPRESENTING US PENCIL MANUFACTURERS WANTS ANTIDUMPING DUTIES IMPOSED ON PENCILS MADE IN THAILAND AND THE PEOPLE'S REPUBLIC OF CHINA THE PENCIL MAKERS ASSOCIATION WHICH REPRESENTS EIGHT US PENCIL MANUFACTURERS SAYS THAT LOWPRICED PENCILS FROM THESE TWO COUNTRIES ARE BEING SOLD IN THE US AT LESS THAN FAIR VALUE PRICES IMPORTS OF PENCILS FROM THE TWO COUNTRIES HAS RISEN TO 35 MILLION GROSS IN 1992 FROM 53000 GROSS IN 1982 AS A RESULT US PENCIL MAKERS HAVE LOST SALES AND MARKET SHARE THE GROUP SAYS UNABLE TO COMPETE WITH IMPORTS SEVERAL DOMESTIC MANUFACTURERS HAVE HAD TO SHUT DOWN THE NUMBER OF US PENCIL MAKERS DECLINED TO EIGHT IN 1992 FROM 17 IN 1979 ACCORDING TO THE GROUP 9311240011 931124 BUSINESS BRIEF TRIMAS CORP MASCOTECH TO SELL LAMONS A HOUSTON MAKER OF GASKETS TRIMAS CORP SAID IT AGREED TO ACQUIRE LAMONS METAL GASKET CO A SUBSIDIARY OF MASCOTECH INC FOR 60 MILLION PLUS CONTINGENT PAYMENTS BASED UPON LAMONS'S FUTURE EARNINGS BASED IN ANN ARBOR MICH TRIMAS IS A DIVERSIFIED PROPRIETARY PRODUCTS COMPANY TRIMAS SAID LAMONS IS A LEADING NORTH AMERICAN MANUFACTURER AND DISTRIBUTOR OF GASKETS FOR REFINING PETROCHEMICAL AND INDUSTRIAL APPLICATIONS LAMONS'S HEADQUARTERS AND PRINCIPAL MANUFACTURING FACILITIES ARE IN HOUSTON WITH ADDITIONAL DISTRIBUTION AND MANUFACTURING FACILITIES IN FOUR STATES AND CANADA 9311240009 931102 REVIEW & OUTLOOK EDITORIAL FAIR SHARERS BILL CLINTON SAID THAT HIS TAX INCREASES WERE AIMED AT THE VERY PEOPLE WHOSE INCOMES WENT UP MOST AND WHOSE TAXES WENT DOWN DURING THE 1980S TO ENFORCE THE RHETORIC HIS TAX BILL INTRODUCED A NEW TOP RATE OF 36 RISING TO 396 AFTER A SURTAX KICKS IN ON TAXABLE INCOME ABOVE 250000 WE WONDER IF CLINTONOMICS WILL BE AS GOOD AS REAGANOMICS WAS AT SUCKING TAX PAYMENTS OUT OF THE RICH THE IRS HAS JUST PUT OUT DATA ON TAX PAYMENTS ACROSS INCOME CLASSES IN THE 1980S WHICH BILL CLINTON HAS DEMONIZED SO OFTEN AS SOME SORT OF USELESS BACCHANALIAN REVEL THE IRS DATA SUGGEST THAT FOR ACCURACY'S SAKE MR CLINTON SHOULD AMEND THAT LINE QUOTED ABOVE THOSE VERY PEOPLE SAW THEIR TAX RATES GO DOWN BUT THEIR SHARE OF TOTAL FEDERAL INCOME TAXES ROSE THE SHARE PAID BY THE WEALTHIEST 1 ROSE TO 246 IN 1991 FROM 176 IN 1981 THE LATEST DATA FROM THE INTERNAL REVENUE SERVICE SHOW THAT WHILE TOP INCOME EARNERS DID PROSPER DURING THE 1980S THE SHARE OF TAX THEY PAID WAS LARGEST RELATIVE TO THEIR SHARE OF INCOME INTERESTINGLY THESE IRS FIGURES ALSO SHOW THAT THE TOTAL TAX PAID AND THE SHARE OF TAX PAID BY TOP EARNERS DECLINED LATER IN THE DECADE AND INTO 1991 THIS OF COURSE IS THE PERIOD THAT INCLUDED BOTH A RECESSION AND THE BUSHMITCHELLDARMAN HIKE IN THE TOP RATE IN 1990 MR CLINTON IS LIKELY TO FIND THAT THE 1980S GOLDEN EGG OF RICH AND WILLING TAXPAYERS WILL TURN ELUSIVE FOR THE SAME REASON THAT THE TAX CUTS OF THE 1980S YIELDED MORE REVENUE THE TAX RATE CUTS IN THE 1980S CREATED STRONG INCENTIVES TO WORK AND PRODUCE MORE CREATING MORE INCOME AND YES WEALTH IN TURN THAT MEANT THESE PEOPLE PAID MORE IN TAXES FOR INSTANCE THE CUT IN THE TOP TAX RATE TO 28 FROM 385 IN 1988 WAS FOLLOWED BY A 25 INCREASE IN TOTAL INCOME TAXES PAID BY THE TOP 1 OF EARNERS ACCORDING TO ANALYSIS BY THE TAX FOUNDATION BACK THEN AS TAX RATES FELL THE PAYBACK ON TAXAVOIDANCE EFFORTS FELL TOO BUT WHEN RATES GO BACK UP THE VERY RICH DECIDE THAT IT IS IN THEIR INTEREST TO SPEND TIME AND MONEY ADJUSTING THEIR TAX PAYMENTS WHEN RATES RISE THEY AVOID THE FULL BLOW OF HIGHER TAXES BY TAKING PAYMENT IN NONMONETARY FORMS BY EMPLOYING GOOD ACCOUNTANTS BY PARKING THEIR MONEY ELSEWHERE OR BY DIVERTING THEIR EXTRA ENERGIES AND TALENTS TO LEISURE IN SHORT WORKING ALL THE TIME BECOMES A POOR INVESTMENT BUT SPENDING SOME OF THAT TIME ON TAX LAWYERS RETURNS AS A RELATIVELY BETTER INVESTMENT AND IT'S GETTING EASIER THE SCOPE FOR AVOIDING TAXES HAS INCREASED IN THE YEARS SINCE LOW RATES ON TOPEARNERS WERE THE VOGUE AMONG THE POLICYMAKERS OF THE 1980S IN A WORLD ECONOMY THAT HAS BECOME MORE INTERNATIONAL AND MORE ELECTRONIC THE COST OF REDEPLOYING ASSETS HAS BECOME EASIER BUT TAXPAYERS AT THE TOP OF THE MIDDLECLASS INCOME SCALE AREN'T SO FORTUNATE LACKING THE SAME ACCESS TO DODGES AND TAX WIZARDS THEY'LL BEAR THE FULL BRUNT OF THE HIGHER RATES OF COURSE FEW OF THESE PEOPLE WERE ACTUALLY PART OF THE 1980S INCOME BONANZA THAT SICKENS THE CLINTONS INSTEAD JUST AS THEY'VE WORKED THEIR WAY UP TO PEAK EARNING POWER IN THE 1990S BILL CLINTON ARRIVES TO DENOUNCE THEM AS ROBBER BARONS AND DEMAND THAT THEY TURN MUCH OF THEIR INCOME OVER TO THE SEMINARIANS ON THE CONGRESSIONAL BUDGET COMMITTEES THAT ALSO MEANS THEY WON'T BE SPENDING MUCH IN AMERICA'S FITSANDSTARTS RECOVERY WE SUSPECT THAT THE ACTUAL REVENUE EFFECTS OF TAXES ON THE TRULY RICH AS DESCRIBED BY THE IRS DATA ARE LARGELY IRRELEVANT IN THE MINDS OF THE CLINTONS AND THEIR ATAVISTICALLY EGALITARIAN DISCIPLES SUCH AS THEIR MUCHCAMPAIGNEDFOR TAX CLONE IN NEW JERSEY GOV JIM FLORIO THEIR ARGUMENT FOR STEEPLY PROGRESSIVE TAXES IS ESSENTIALLY MORALISTIC BASED ON A WORLDVIEW BORN IN SOCIAL DEMOCRATIC CIRCLES ABOUT 60 YEARS AGO NO AMOUNT OF REALWORLD EXPERIENCE WITH ACTUAL REVENUE DYNAMICS WILL ALTER THIS THEOLOGY SO FOR THE NEAR TERM THE SUPERRICH WILL PAY THEIR LAWYERS AND EVERYONE ELSE WILL PAY THE CLINTONS' SACKCLOTHANDASHES TAXES SEE RELATED LETTERS LETTERS TO THE EDITOR SQUEEZE THE RICH CLOSE THE LOOPHOLES WSJ NOV 24 1993 9311020181 YY93 MM11 9311240007 931124 INTERNATIONAL BRIEF THORN EMI PLC PRETAX PROFIT FOR FIRST HALF ROSE 93 TO 1696 MILLION THORN EMI PLC LONDON SAID THAT PRETAX PROFIT FOR THE SIX MONTHS ENDED SEPT 30 ROSE 93 TO 115 MILLION 1696 MILLION HELPED BY RECORD FIRSTHALF RESULTS AT ITS MUSIC DIVISION THE DIVERSIFIED LEISURE COMPANY ALSO SAID THAT WHEN 10 MILLION OF EXCEPTIONAL ITEMS ARE INCLUDED WITH RESULTS PRETAX PROFIT FELL 02 TO 105 MILLION PRETAX PROFIT IN THE YEAREARLIER PERIOD WAS 1052 MILLION THORN CHAIRMAN SIR COLIN SOUTHGATE SAID THAT ALTHOUGH THE INTERIM DIVIDEND OF NINE PENCE IS UNCHANGED THORN PLANS ON INCREASING THE FINAL DIVIDEND AT LEAST IN LINE WITH INFLATION THE COMPANY SAID FOREIGNEXCHANGE FLUCTUATIONS BOOSTED PROFIT BY 101 MILLION MR SOUTHGATE SAID THORN'S CORE MUSIC AND RENTAL BUSINESSES TURNED IN A GOOD PERFORMANCE 9311240006 931124 KEMPER AGREES TO SELL UNIT FOR 100 MILLION TO ASSOCIATED GROUP LONG GROVE ILL KEMPER CORP SAID IT DEFINITIVELY AGREED TO SELL ITS FEDERAL KEMPER INSURANCE CO UNIT ITS LAST PROPERTYCASUALTY INSURANCE BUSINESS TO A UNIT OF CLOSELY HELD ASSOCIATED GROUP FOR 100 MILLION THE FINANCIALSERVICES CONCERN PUT FEDERAL KEMPER ALONG WITH ITS ECONOMY FIRE & CASUALTY UNIT ON THE BLOCK A YEAR AGO AS PART OF AN EFFORT TO FOCUS ON ITS CORE BUSINESSES BOTH UNITS ARE REGIONAL INSURERS THAT WRITE AUTO AND HOMEOWNER INSURANCE THE ECONOMY FIRE BUSINESS WAS SOLD IN AUGUST TO ST PAUL COS AND KEMPER SAID YESTERDAY'S AGREEMENT CULMINATES OUR EFFORTS TO TRANSFORM KEMPER CORP INTO A FOCUSED FINANCIALSERVICES COMPANY WITH ITS ASSETMANAGEMENT LIFEINSURANCE AND SECURITIESBROKERAGE BUSINESSES NOW GETTING MANAGEMENT'S FULL ENERGIES THE BUYER IS ANTHEM P&C HOLDINGS INC ITS PARENT ASSOCIATED GROUP IS BASED IN INDIANAPOLIS AND HAS INTERESTS IN INSURANCE AND FINANCIAL SERVICES ASSOCIATED CALLED THE ACQUISITION PART OF ITS STRATEGY TO DIVERSIFY AND EXPAND ITS PRESENCE IN THE PROPERTYCASUALTY FIELD KEMPER SAID IT THAT IN ADDITION TO THE SALE PRICE IT WILL RECEIVE A 5 MILLION DIVIDEND FROM FEDERAL KEMPER IT EXPECTS THE SALE TO CLOSE BY YEAR END A SPOKESWOMAN SAID KEMPER EXPECTS TO RECORD A FOURTHQUARTER GAIN ON THE FEDERAL KEMPER SALE BUT THE SIZE HASN'T YET BEEN DETERMINED KEMPER'S REVAMPING EFFORT HAS ALSO INCLUDED THE SWAP EARLIER THIS YEAR OF ITS REINSURANCE AND RISKMANAGEMENT LINES TO LUMBERMENS MUTUAL CASUALTY CO IN EXCHANGE FOR A 35 STAKE IN KEMPER HELD BY LUMBERMENS LUMBERMENS RETAINS A 4 HOLDING IN KEMPER CORP IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KEMPER SHARES CLOSED AT 35 UP 175 OR 53 9311240005 931124 STALEMATE OVER BRADY BILL IN SENATE FORCES CONGRESS TO DELAY ADJOURNMENT BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS DELAYED ITS SCHEDULED YEAREND ADJOURNMENT AS NEGOTIATIONS FAILED TO BREAK A SENATE STALEMATE OVER WHITE HOUSEBACKED LEGISLATION TO IMPOSE A NATIONWIDE WAITING PERIOD FOR HANDGUN PURCHASES BARRING AN AGREEMENT THIS MORNING THE DEMOCRATIC LEADERSHIP WILL CALL SENATORS BACK AFTER THE THANKSGIVING RECESS IN A HIGHPROFILE ATTEMPT TO FORCE ACTION ON THE BILL WHICH CLEARED THE HOUSE SHORTLY AFTER MIDNIGHT MONDAY BY A 238187 VOTE THE BILL'S PROPONENTS ARE PROMISED BACKTOBACK CHANCES NEXT TUESDAY AND WEDNESDAY TO COME UP WITH THE 60 VOTES NEEDED TO CUT OFF DEBATE AND THE SHOWDOWN STRATEGY REPRESENTS A HIGHPROFILE ALBEIT LONGSHOT ATTEMPT TO BREAK THE REPUBLICAN RESISTANCE IN THE MOST RECENT TEST OF STRENGTH ONLY 57 SENATORS SUPPORTED CLOTURE AND AS A PRACTICAL MATTER IT WILL BE DIFFICULT FOR THE ADMINISTRATION TO GET EVEN THAT MANY SENATORS BACK NEXT WEEK BY THE SAME TOKEN THE BILL NAMED FOR FORMER WHITE HOUSE PRESS SECRETARY JAMES BRADY WHO WAS PARALYZED DURING A 1981 ASSASSINATION ATTEMPT ON PRESIDENT REAGAN HAS DRAWN WIDE PUBLIC SUPPORT AND REPUBLICANS ARE SENSITIVE TO BEING SEEN AS OBSTRUCTIONISTS MINORITY LEADER ROBERT DOLE BITTERLY COMPLAINED THAT THE CURRENT VERSION OF THE BILL CRAFTED BY A HOUSESENATE CONFERENCE THIS WEEK MOVES TOO FAR FROM WHAT CONSERVATIVES RELUCTANTLY AGREED TO LAST WEEKEND THE KANSAS REPUBLICAN COMES TO THE DEBATE AS A CLOSE ALLY OF THE NATIONAL RIFLE ASSOCIATION BUT THE FIGHT HAS EVOLVED INTO A MORE PERSONAL TEST OF HIS LEADERSHIP WITH CONSERVATIVES IN HIS PARTY AND HIS PRESIDENTIAL AMBITIONS FOR BEING FLEXIBLE WE GOT SHAFTED SAID MR DOLE ACCUSING PROPONENTS OF TRYING TO RUB OUR NOSES IN IT THE KANSAN TOOK A MORE CONCILATORY TONE IN LATER EXCHANGES WITH SEN HOWARD METZENBAUM D OHIO BUT NEGOTIATIONS SOON FALTERED AGAIN LAST NIGHT WHILE MOST ATTENTION HAS FOCUSED ON COMPETING PROVISIONS TO PHASE OUT THE WAITING PERIOD AFTER FOUR TO FIVE YEARS A SECOND ISSUE IS WHAT PERFORMANCE STANDARDS TO IMPOSE ON A NRABACKED ALTERNATIVE PLAN SETTING UP A NATIONAL NETWORK TO CHECK THE CRIMINAL BACKGROUND OF WOULDBE GUN PURCHASERS THIS SOCALLED INSTANT CHECK OF FEDERAL AND STATE RECORDS COULD REPLACE THE WAITING PERIOD OVER TIME AND PART OF THE DISPUTE NOW IS FOR EXAMPLE WHAT PERCENTAGE OF STATE CRIMINAL RECORDS MUST BE INCORPORATED INTO THE SYSTEM BEFORE IT IS JUDGED ADEQUATE HOUSE MEMBERS HAVE ALREADY GONE HOME FOR THE HOLIDAY AND THE SENATE LEADERSHIP YESTERDAY AGREED THAT AFTER THE SHOWDOWN ON THE BRADY BILL CONGRESS WILL ADJOURN NEXT WEDNESDAY UNTIL JAN 25 IN THE WANING HOURS OF DEBATE CONGRESS GAVE ITS FINAL APPROVAL TO BILLS THAT WOULD STRENGTHEN REGULATION OF THE GOVERNMENT SECURITIES MARKET AND PROTECT INVESTORS IN LIMITED PARTNERSHIP ROLLUPS PROVIDE 183 BILLION TO THE THRIFT INDUSTRY CLEANUP AND EXTEND A 11 BILLION JOBLESSBENEFITS BILL PRESIDENT CLINTON IS EXPECTED TO SIGN ALL OF THE MEASURES THE GOVERNMENT SECURITIES AND LIMITEDPARTNERSHIP MEASURE WAS PASSED ON VOICE VOTES IN THE SENATE LATE MONDAY NIGHT AND THE HOUSE EARLY YESTERDAY MORNING THE GOVERNMENTSECURITIES MEASURE AUTHORIZES THE TREASURY TO REQUIRE BOND MARKET PLAYERS TO REPORT LARGE POSITIONS IN GOVERNMENT SECURITIES IT ALSO REQUIRES DEALERS TO KEEP RECORDS IN A FORM THAT COULD BE SENT ELECTRONICALLY TO THE SECURITIES AND EXCHANGE COMMISSION UPON REQUEST THE BILL WOULD REGULATE GOVERNMENT SECURITIES SALES PRACTICES FOR THE FIRST TIME PERMANENTLY EXTEND THE TREASURY'S RULEMAKING AUTHORITY OVER THE MARKET AND DIRECT THE SEC TO REPORT ANNUALLY ON THE ADEQUACY OF BOND PRICE DISSEMINATION IN ADDITION IT WOULD REQUIRE THAT ALL QUALIFIED BIDDERS BE GIVEN EQUAL ACCESS TO THE TREASURY'S AUTOMATED AUCTIONS WITHIN TWO YEARS AND OPEN TO THE PUBLIC PART OF THE MEETINGS OF TREASURY'S PRIVATESECTOR DEBT ADVISORY PANEL THE ROLLUPS MEASURE ADDRESSES TRANSACTIONS IN WHICH PARTNERSHIP INVESTORS ARE SOLICITED TO APPROVE A REORGANIZATION WITH OTHER PARTNERSHIPS RESULTING IN AN EXCHANGE OF PARTNERSHIP SECURITIES FOR SECURITIES OF THE NEW ENTITY REFORM ADVOCATES MAINTAIN THAT MANY RESTRUCTURINGS HAVE HURT SMALL INVESTORS WHILE GENERAL PARTNERS HAVE PROSPERED THIS MEASURE WOULD REQUIRE IMPROVED DISCLOSURES TO HIGHLIGHT ANY RISKS AND CONFLICTS OF INTEREST AND MAKE IT EASIER FOR LIMITED PARTNERS TO FIGHT ROLLUPS THEY BELIEVE TO BE ABUSIVE THE MONEY IN THE SAVINGSANDLOAN LEGISLATION APPROVED LATE MONDAY BY THE HOUSE ON A 235191 VOTE WOULD ALLOW THE RESOLUTION TRUST CORP TO CLOSE ANOTHER 60 OR SO INSTITUTIONS ALREADY IN GOVERNMENT HANDS AND POSSIBLY OTHERS THE BILL WOULD AUTHORIZE CONGRESS TO APPROPRIATE AT A LATER DATE 8 BILLION TO THE SAVINGS ASSOCIATION INSURANCE FUND WHICH IS SUPPOSED TO FINANCE THRIFT CLEANUPS AFTER THE RTC CONCLUDES ITS WORK THE BILL WOULD EXTEND UNTIL MID1995 THE RTC'S AUTHORITY TO SEIZE INSTITUTIONS INCREASE THE ABILITY OF BUSINESSES OWNED BY MINORITIES AND WOMEN TO TAKE ADVANTAGE OF RTC CONTRACTING OPPORTUNITIES AND EXTEND THE STATUTE OF LIMITATIONS FOR THE RTC TO PURSUE CIVIL ACTIONS AGAINST THE OWNERS AND MANAGERS OF FAILED S&LS THE JOBLESSBENEFITS BILL RECEIVED FINAL CONGRESSIONAL APPROVAL ON A 320105 HOUSE VOTE LATE MONDAY THE LEGISLATION WOULD PROVIDE SEVEN TO 13 WEEKS OF BENEFITS TO WORKERS WHO HAVE EXHAUSTED STATE JOBLESS ASSISTANCE AND EXTEND FOR FOUR MONTHS THE PERIOD IN WHICH TO APPLY IT ALSO CONTAINS A PROVISION THAT MANDATES EMPLOYMENT ASSISTANCE FOR THE LONGTERM UNEMPLOYED JOHN CONNOR AND GREG HITT CONTRIBUTED TO THIS ARTICLE 9311240004 931124 T CELL SCIENCES PLACEMENT CAMBRIDGE MASS T CELL SCIENCES INC SAID IT RAISED 18 MILLION IN A PRIVATE PLACEMENT TO INSTITUTIONAL INVESTORS OF 2835000 COMMON SHARES AT 635 A SHARE THE PHARMACEUTICAL DEVELOPMENT COMPANY WILL USE PROCEEDS TO FUND DRUG DEVELOPMENT WERTHEIM SCHRODER & CO ARRANGED THE TRANSACTION 9311240003 931124 BUSINESS BRIEF TANDY TO SELL O'SULLIVAN INDUSTRIES ITS FURNITURE UNIT IN PUBLIC OFFERING FORT WORTH TEXAS TANDY CORP SAID IT PLANS TO SELL ITS O'SULLIVAN INDUSTRIES FURNITURE UNIT TO THE PUBLIC LARGELY COMPLETING ITS PLAN TO UNLOAD EVERYTHING BUT ITS RETAIL OPERATIONS TANDY DIDN'T ESTIMATE PROCEEDS FROM THE PROPOSED OFFERING BUT ANALYSTS SAID THAT O'SULLIVAN WHICH MAKES READYTOASSEMBLE FURNITURE COULD FETCH 250 MILLION TO 300 MILLION TANDY WHOSE CONSUMERELECTRONICS AND COMPUTERRETAILING OPERATIONS INCLUDE THE COMPUTER CITY AND INCREDIBLE UNIVERSE CHAINS AS WELL AS ITS FLAGSHIP RADIO SHACK CHAIN SAID IT WILL USE THE PROCEEDS FROM THE O'SULLIVAN OFFERING TO FUND RETAILSTORE EXPANSION REDUCE DEBT AND REPURCHASE SHARES A SPOKESMAN FOR TANDY WHICH SAID IN MAY THAT IT WAS LOOKING FOR A BUYER FOR O'SULLIVAN REFUSED YESTERDAY TO SAY WHETHER IT RECEIVED ANY BIDS DENNIS TELZROW A RETAIL ANALYST AT PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS SAID TANDY PROBABLY GOT SOME REASONABLE OFFERS FOR THE UNIT BUT DECIDED IT COULD GET EVEN MORE FOR IT IN A PUBLIC OFFERING THE ANNOUNCEMENT GAVE A BOOST TO TANDY'S STOCK WHICH JUMPED 1625 TO CLOSE AT 45875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE STOCK HAS BEEN ON A STEADY CLIMB SINCE AUGUST WHEN IT WAS TRADING AROUND 30 A SALE OF O'SULLIVAN WOULD LEAVE TANDY WITH LIKA A MANUFACTURER OF PRINTED CIRCUIT BOARDS AS ITS ONLY NONRETAIL OPERATION LAST MONTH TANDY AGREED TO SELL THE ASSETS OF ITS MEMTEK PRODUCTS DIVISION WHICH MAKES MEMOREX AUDIOTAPE AND VIDEOTAPE FOR 65 MILLION IN JULY THE COMPANY SOLD ITS PERSONALCOMPUTER MANUFACTURING BUSINESS TO AST RESEARCH INC IRVINE CALIF FOR ABOUT 115 MILLION 9311240002 931124 TECHNOLOGY BY WILLIAM M BULKELEY MORE AND MORE FAXES ARE BEING SENT BY COMPUTERS LAST YEAR SALES OF COMPUTERS WITH FAX CAPABILITY SURPASSED SALES OF STANDALONE FAX MACHINES FOR THE FIRST TIME ACCORDING TO BIS STRATEGIC DECISIONS A NORWELL MASS MARKET RESEARCH FIRM THIS YEAR COMPUTER FAXMODEM SALES WILL RISE 66 TO FIVE MILLION MORE THAN DOUBLE THE ESTIMATED TWO MILLION FACSIMILE MACHINES THAT WILL BE SOLD ONE BENEFIT OF RECEIVING FAXES ON COMPUTERS IS THAT THEY CAN BE PRINTED OUT ON LASER PRINTERS AVOIDING THAT SLIPPERY FAX PAPER HOWEVER FAXMACHINE SUPPLIER PITNEY BOWES SAYS 63 OF FAX USERS IN BIG COMPANIES ALREADY HAVE ACCESS TO PLAINPAPER FAX MACHINES UP FROM 47 LAST YEAR WHETHER PEOPLE ARE SENDING FAXES VIA COMPUTERS OR FAX MACHINES PRICES ARE NOW LOW ENOUGH THAT FAXES ARE BEGINNING TO CHALLENGE THE POST OFFICE'S PRIZED MONOPOLY ON FIRSTCLASS MAIL SAYS RICHARD MCKENZIE A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT IRVINE HE CALCULATES THAT SENDING TWO PAGES ANYWHERE IN THE COUNTRY AT ANY TIME COSTS LESS THAN A 29CENT STAMP AT EVENING RATES IT'S CHEAPER TO FAX AS MANY AS 10 PAGES FAXING AS MANY AS 139 PAGES IS ALWAYS CHEAPER THAN OVERNIGHT DELIVERY FAXES ALSO GET THERE FASTER AND WITHOUT THE BOTHER OF ADDRESSING AN ENVELOPE ALTHOUGH COMPUTERS SAVE TIME WHEN IT COMES TO FAXING LETTERS CREATED ON COMPUTERS THEY'RE LESS ATTRACTIVE FOR RECEIVING FAXES BECAUSE STORED FAXES OCCUPY CONSIDERABLE DISK SPACE AND PORTABLE COMPUTERS USUALLY AREN'T HOOKED UP TO PHONE LINES DELRINA TORONTO WHOSE WINFAX PROGRAM IS THE LEADING FAX SOFTWARE UNVEILED A SERVICE LAST WEEK THAT IT HOPES WILL HELP SOLVE THE PROBLEM WITH PORTABLE COMPUTERS IN CONJUNCTION WITH MCI COMMUNICATIONS IT WILL OFFER FAX MAILBOXES THAT CAN BE RENTED FOR ABOUT 20 A MONTH BEGINNING NEXT YEAR THE MAILBOXES CAN NOTIFY RENTERS BY BEEPER TO CHECK FOR FAXES FOR INSTANCE A SALES MANAGER COULD BROADCAST FAXES THAT SALESPEOPLE COULD COLLECT WITH THEIR LAPTOP COMPUTERS AFTER CHECKING INTO A HOTEL AT THE END OF THE DAY MARK SKAPINKER PRESIDENT OF DELRINA SAYS ONE OF THE BIGGEST BENEFITS IS FAX PRIVACY WHEN YOU'RE STAYING AT A HOTEL IN SAN FRANCISCO YOU HATE TO HAVE YOUR OFFICE SEND A CONTRACT TO THE HOTEL FAX YOU NEVER KNOW WHO WILL SEE IT MR SKAPINKER SAYS WITH A FAX MAILBOX SALESPEOPLE CAN DIAL IN FROM THEIR ROOMS AND BE SURE THAT THE FAXES APPEAR ONLY ON THEIR COMPUTERS RESEARCHERS AT SANDIA NATIONAL LABORATORIES IN ALBUQUERQUE NM USING AN INTEL PARAGON SUPERCOMPUTER RECENTLY ACHIEVED WHAT THEY BELIEVE IS A US SPEED RECORD OF 1025 GIGAFLOPSMORE THAN 100 BILLION CALCULATIONS A SECOND ART HALE MANAGER OF SANDIA'S PARALLEL COMPUTING SCIENCE DEPARTMENT SAYS HE THINKS HIS TEAM WILL SOON TOP THE WORLD RECORD OF 124 GIGAFLOPS SET IN JAPAN ON A FUJITSU SUPERCOMPUTER SANDIA WAS RUNNING A SIMULATION PROGRAM THAT HELPS PREDICT HOW AN OBJECT WILL APPEAR TO RADAR SUCH SIMULATIONS ARE USED BY AEROSPACE DESIGNERS WHO SEEK TO MINIMIZE THE RADAR IMAGE OF SUCH PLANES AS THE STEALTH BOMBER INTEL CALCULATES THAT A HUMAN USING A CALCULATOR WOULD TAKE 3000 YEARS TO DO AS MANY CALCULATIONS AS THE PROGRAM RUNS IN JUST ONE SECOND MOST OF THE PLAYERS IN THE NATION'S HEALTHCARE INDUSTRY ARE WAITING FOR THE GOVERNMENT TO DECIDE ON WHAT TYPE OF HEALTH CARDS WILL BE USED UNDER A NATIONAL HEALTH PLAN BUT ADVANTAGE DATA SYSTEMS A CLOSELY HELD OKLAHOMA CITY FIRM THINKS IT CAN SET UP A HEALTHCARD NETWORK PAID FOR BY CONSUMERS ADVANTAGE IS EQUIPPING OKLAHOMA CITY AMBULANCE FLEETS HOSPITAL EMERGENCY ROOMS AND PHARMACIES WITH READERS THAT ATTACH TO PERSONAL COMPUTERS THE PHARMACIES WILL SELL THE CARDS FOR 30 ADVANTAGE IS USING A SMART CARD AND READER MADE BY GEMPLUS OF GEMENOS FRANCE IT HOLDS ENOUGH INFORMATION TO INCLUDE A PATIENT'S INSURANCE STATUS NAME ADDRESS NEXT OF KIN DOCTOR MEDICAL CONDITION PAST SURGERIES AND PHARMACEUTICAL RECORDS WE DETERMINED THE INFORMATION EMERGENCY ROOMS NEED MOST SAYS CHRISTOPHER KAVANAUGH PRESIDENT OF ADVANTAGE THE PATIENT WILL UPDATE THE INFORMATION AT THE PHARMACY AND KEEP A ONEPAGE PRINTED VERSION AS A BACKUP THE COMPANY ITSELF TRYING TO PROTECT PRIVACY WON'T RECORD ANY OF THE MEDICAL INFORMATION THE CARD CAN BE READ BY AN EMERGENCY MEDICAL TECHNICIAN WITH A POCKET COMPUTER IT MIGHT HELP DECIDE WHETHER AN UNCONSCIOUS PERSON HAS DIABETES A HEART CONDITION OR IS AN ALCOHOLIC FOR EXAMPLE THE CLINTON ADMINISTRATION HAS BACKED AWAY FROM SMART CARDS BECAUSE OF CONCERNS THAT HAVING SO MUCH INFORMATION IN ONE PLACE MIGHT COMPROMISE PRIVACY IT PROPOSES A MAGNETICSTRIPE CARD LIKE MOST AMERICAN CREDIT CARDS THAT ONLY CONTAINS INSURANCE INFORMATION TO SIMPLIFY HOSPITAL ADMISSIONS CHESS MASTERS PLAYING COMPUTERS WON 75 OF THE POINTS IN THE FOURTH ANNUAL BOSTON COMPUTER MUSEUM'S HARVARD CUP UP FROM 72 LAST YEAR SOME EXPERTS HAD PREDICTED THE COMPUTERS WOULD IMPROVE SHARPLY BECAUSE THE PCBASED PROGRAMS NOW RUN ON COMPUTERS USING INTEL'S VERY FAST PENTIUM CHIP THE MOST SUCCESSFUL PROGRAM HEURISTIC SOCRATES FROM HEURISTIC SOFTWARE BERKELEY CALIF WON THREE OF ITS SIX MATCHES NEXT WINTER FOOTBALL FANS IN THE NATION'S FROST BELT MAY BE ABLE TO KEEP WARM WITH A HOT SEAT CONTAINING A POLYMER THAT MAINTAINS 90DEGREE FAHRENHEIT HEAT FOR EIGHT HOURS AFTER JUST SIX MINUTES IN A MICROWAVE OVEN THE POLYMER DEVELOPED BY RESEARCH SCIENTIST GIDEON SALEE AT BATTELLE IN COLUMBUS OHIO IS BEING TESTED BY FOOTWEAR MAKER RG BARRY CORP OF PICKERINGTON OHIO 9311240001 931124 GEICO IS ACCUSED OF DISCRIMINATING AGAINST BLACKS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEVERAL CURRENT AND FORMER BLACK EMPLOYEES OF GEICO CORP ACCUSED THE INSURER OF REDLINING PRACTICES THAT DISCRIMINATE AGAINST BLACK PEOPLE IN THE WRITING OF AUTO OR HOMEOWNER POLICIES THE GEICO EMPLOYEES WHO SELL INSURANCE POLICIES OR PROCESS APPLICATIONS SAID AT A NEWS CONFERENCE THAT IN SOME INSTANCES THEY WERE DIRECTED TO AVOID APPROVALS OF POLICIES IN LOWINCOME MINORITY NEIGHBORHOODS IN WASHINGTON BALTIMORE AND OTHER AREAS OF THE NATION GEICO'S MARKETING EFFORTS ARE AIMED PRIMARILY AT AFFLUENT WHITE AREAS THEY SAID THEY ALSO ACCUSED GEICO OF TREATING THEM IN A HARSH RACIALLY DEMEANING MANNER GREGORY WIMS AN OFFICIAL OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE'S CHAPTER IN MONTGOMERY COUNTY A SUBURBAN MARYLAND AREA NORTH OF WASHINGTON SAID THE NAACP WILL PURSUE SIMILAR ALLEGATIONS INVOLVING OTHER INSURERS AROUND THE COUNTRY ROBERT WILLIS THE DISTRICT OF COLUMBIA INSURANCE COMMISSIONER SAID HE PLANS A MARKET CONDUCT EXAMINATION OF GEICO'S UNDERWRITING PRACTICES IN THE DISTRICT THAT COULD LEAD TO REGULATORY SANCTIONS IF DISCRIMINATION WERE ESTABLISHED HE TERMED THE ALLEGATIONS BY THE GEICO EMPLOYEES VERY ALARMING AUGUST ALEGI A GEICO GROUP VICE PRESIDENT SAID THE ACCUSATIONS ARE FALSE HE SAID THE INSURER HAS AN EXCELLENT RECORD OF TREATING ALL WHO APPLY FOR INSURANCE FAIRLY AND EQUITABLY WITH MANY POLICYHOLDERS IN BALTIMORE AND ANACOSTIA A MAINLY AFRICANAMERICANPOPULATED AREA OF THE DISTRICT THE LARGEST NUMBER AND PERCENTAGE OF GEICO POLICY HOLDERS IN THE WASHINGTON AREA ARE IN ANACOSTIA HE SAID HE ALSO SAID THE COMPANY HASN'T HAD ANY RACIAL DISCRIMINATION LAWSUITS BY EMPLOYEES IN THE WASHINGTONBALTIMORE AREA IN THE LAST DECADE INSURANCE REDLINING HAS BEEN GETTING INCREASED CONGRESSIONAL ATTENTION THIS YEAR AS CONSUMER AND MINORITY GROUPS INCREASE THEIR CRITICISM OF THE PRACTICE THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW OR ACORN HAS ISSUED TWO STUDIES ONE SHOWING RAMPANT INSURER DISCRIMINATION AGAINST MINORITIES IN 14 CITIES AND ANOTHER CONCLUDING THAT ALLSTATE INSURANCE CO A UNIT OF SEARS ROEBUCK & CO SPECIFICALLY DISCRIMINATES AGAINST MINORITIES AT YESTERDAY'S NEWS CONFERENCE CHARLES BECKWITH A FORMER GEICO SALES TRAINER AND UNDERWRITER SAID HE GOT SEVERAL RAISES AND PROMOTIONS UNTIL HE BEGAN COMPLAINING THAT HE HAD TO TEACH ASSOCIATES HOW TO DISCRIMINATE HE WAS THEN CRITICIZED AND SOON FIRED HE SAID MR BECKWITH REFERRED TO AN INTERNAL COMPANY MEMO NOTING DESPITE GEICO POLICY FOR INSPECTING HOUSES THAT ARE OVER 50 YEARS OLD THAT WE DO NOT ORDER INSPECTIONS IN DC IF ZIP CODES ARE 20015 20016 AND 20037 MOREAFFLUENT AREAS UNLESS THE HOMES WERE BUILT IN THE 1800S HE SAID TWO GEICO EXECUTIVES CONCEDED THAT WAS A FORM OF REDLINING MR BECKWITH ALSO SAID THAT WHEN BESSIE GAYLORD A BALTIMORE GEICO AUTOPOLICY HOLDER FOR 20 YEARS TRIED TO SWITCH HER HOMEOWNER POLICY TO GEICO MR BECKWITH'S TRAINER TOLD HIM TO REJECT IT SHE WAS TURNED DOWN FOR HAVING BEEN THE VICTIM OF A 400 THEFT AND LIVING NEXT TO A GROCERY STORE HE SAID HIS BLACK TRAINER TOLD HIM I DON'T WANT THE BUSINESS THERE ANYWAY MR BECKWITH SAID THE COMPANY'S UNDERWRITING GUIDELINES SAID MIA POWELL A GEICO UNDERWRITER RANK CUSTOMER PROSPECTS BY OCCUPATION WITH GROUP 1 INCLUDING ARCHITECTS AND SCIENTISTS THE LESSREGARDED GROUP 5 INCLUDES CLERKS LABORERS AND TRUCK DRIVERS BECAUSE BLACKS ARE MORE LIKELY TO FALL INTO GROUP 5 THEY'RE LESS LIKELY TO GET GEICO AUTO POLICIES REGARDLESS OF DRIVING RECORDS MRS POWELL SAID GEICO'S MR ALEGI SAID THE ZIP CODE MEMO WAS WRITTEN BY ONE EMPLOYEE FOR ANOTHER AND DOESN'T REFLECT COMPANY POLICY HE SAID THE UNDERWRITING GUIDELINES CITED BY MRS POWELL DON'T APPLY TO THE DISTRICT OF COLUMBIA WHERE THE USE OF OCCUPATIONAL CLASSIFICATION IS ILLEGAL THE DEMEANING TREATMENT CITED BY THE BLACK GEICO EMPLOYEES INCLUDED ALLEGED RACIAL SLURS AND FALSE ACCUSATIONS ABOUT A WORKER'S LIFESTYLE 9311240041 931011 EDUCATION KIDS' HOMEWORK MAY BE GOING THE WAY OF THE DINOSAUR BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL HOMEWORK ONCE A CHILDHOOD FACT OF LIFE MAY BE HEADED FOR EXTINCTION AT HAMILTON TEXAS HIGH SCHOOL MANY STUDENTS RUSH THROUGH ASSIGNMENTS IN SCHOOL HALLWAYS EACH MORNING WRITE ENTIRE RESEARCH PAPERS DURING STUDY HALL AND SCRIBBLE DOWN SHARED ANSWERS DURING CLASS BREAKS THE SENIOR CLASS PRESIDENT CHRISTY CLOWDUS WHO DOES MOST OF HER ASSIGNMENTS AT HOME SAYS SHE'S THE EXCEPTION NOBODY DOES THEIR HOMEWORK AT HOME SHE SAYS THEY DO IT EVERY TIME THEY CAN EXCEPT AT HOME IN BOTH PUBLIC AND PRIVATE SCHOOLS MANY TEACHERS ARE ASSIGNING LESS HOMEWORK AND FEWER STUDENTS ARE COMPLETING THE ASSIGNMENTS PARENTS DON'T SEEM TO CARE AS MUCH AS THEY USED TO WHEN YANKELOVICH PARTNERS AND THE CABLE NETWORK NICKELODEON POLLED 1200 CHILDREN EARLIER THIS YEAR 83 OF TEENAGERS AGED 14 TO 17 SAID IT'S IMPORTANT TO THEIR PARENTS THAT THEY COMPLETE THEIR HOMEWORK DOWN FROM 96 IN 1987 EDUCATORS BLAME THE CHANGING AMERICAN HOUSEHOLD THEY CITE WORKWEARY PARENTS WHO LACK THE ENERGY TO NAG THEIR CHILDREN AS WELL AS FRACTURED FAMILIES IN WHICH NO ONE WATCHES THE YOUNG ONES SOME PARENTS PLACE TOO MUCH EMPHASIS ON THEIR CHILDREN'S EXTRACURRICULAR ACTIVITIES SPORTS TEAMS MUSIC LESSONS AND THE LIKE BY THE TIME THEIR CHILDREN GET HOME FROM SOCCER PRACTICE AND KARATE THEY'RE TOO TIRED TO BUCKLE DOWN TO ACADEMICS MOREOVER MANY PARENTS ARE ILLEQUIPPED TO HELP WITH HOMEWORK BECAUSE THEY THEMSELVES NEVER LEARNED BASIC CONCEPTS IF IT'S TOO HARD YOU GET THE MOTHER CALLING IN AND COMPLAINING SAYS DIANE GARDNER WHO TEACHES THIRD GRADE AT MARTIN LUTHER KING ELEMENTARY SCHOOL IN PITTSBURGH SOME OF OUR PARENTS MAY NOT HAVE HAD A LOT OF SUCCESS IN SCHOOL THEMSELVES TO BE SURE THERE ARE PLENTY OF ACTIVE PARENTS WHO TAKE A DEEP INTEREST IN HOMEWORK AND PLENTY OF SCHOOLS THAT ASSIGN HOURS OF IT JIM AND DONNA MIKULA OF MCMURRAY PA SPEND TWO HOURS A NIGHT AT THE KITCHEN TABLE WITH THEIR THREE ELEMENTARY SCHOOL CHILDREN AND ALVIN JANOVICH OF WASHINGTON PA MOANS THAT HE'S LEARNING ALGEBRA ALL OVER AGAIN HELPING MY DAUGHTER DIANNA LINDSAY PRINCIPAL OF NEW TRIER HIGH SCHOOL IN WINNETKA ILL SAYS HER STUDENTS 98 OF WHOM GO ON TO COLLEGE EASILY DO FOUR TO FIVE HOURS OF HOMEWORK EACH NIGHT AND THE HOMEWORK IS DEMANDING SHE SAYS BECAUSE STUDENTS WANT TO BE PREPARED FOR COLLEGE ENTRANCE EXAMINATIONS WHILE WE TOO HAVE UNUSUAL FAMILY STRUCTURES SHE ADDS THAT DOESN'T APPEAR TO BE A HANDICAP FOR OUR STUDENTS BECAUSE THEIR PARENTS' EXPECTATIONS ARE THAT THEY'LL DO THEIR HOMEWORK BUT ATTITUDES LIKE THAT ARE MORE AND MORE THE EXCEPTION I'M FIGHTING AGAINST NINTENDO SAYS KATHY HARRINGTON WHO TEACHES EIGHTHGRADE READING AT GREENWAY MIDDLE SCHOOL IN PITTSBURGH SHE SAYS THAT WHEN SHE BEGAN TEACHING 17 YEARS AGO ABOUT 80 TO 90 OF HER STUDENTS TURNED IN THEIR HOMEWORK TODAY IT'S 50 OR LESS SHE SAYS THE RESULT SHE ADDS IS EIGHTH GRADERS WHO DON'T KNOW BASIC PHONICS THEY SIMPLY CAN'T SOUND OUT WORDS SO WHEN IT COMES TO READING LITERATURE THEY'RE STUMBLING OVER POLYSYLLABIC WORDS LIKE INCOMPREHENSIBLE AND UNIMPEDED STUDENTS WHO DON'T DO HOMEWORK NOT ONLY LACK BASIC SKILLS GRAMMAR SPELLING AND MULTIPLICATION TABLES BUT NEVER PRACTICE HOW TO BROADEN FACTS INTO IDEAS BY WRITING ESSAYS AND RESEARCH PAPERS PLUS THERE ARE OTHER BENEFITS TO DOING HOMEWORK SUCH AS SELFDISCIPLINE TIME ORGANIZATION SKILLS AND INDEPENDENT PROBLEM SOLVING SAYS HARRIS COOPER A PROFESSOR OF PSYCHOLOGY AND A HOMEWORK EXPERT AT THE UNIVERSITY OF MISSOURI TEACHER APATHY COMPOUNDS THE PROBLEMS CAUSED BY LACK OF SUPPORT AMONG PARENTS TEACHERS ARE HUMAN BEINGS AND IF THEY CONTINUALLY GET THE SAME NEGATIVE REINFORCEMENT THEY SAY I'M NOT DOING IT THIS WAY ANY MORE' SAYS TOM BUDDE PRINCIPAL OF ADAMS CITY HIGH SCHOOL IN COMMERCE CITY COLO OPINIONS VARY ON HOW MUCH HOMEWORK SHOULD BE ASSIGNED BUT MR COOPER AND OTHERS BELIEVE HIGH SCHOOL STUDENTS SHOULD BE REQUIRED TO DO HOMEWORK FOUR OR FIVE TIMES A WEEK SPENDING ABOUT TWO HOURS AT A TIME MIDDLE AND GRADESCHOOLERS NEED LESS HOMEWORK THOUGH MANY BELIEVE EVEN THE YOUNGEST STUDENTS SHOULD DO SOME SOME TEACHERS ARE ENDING THEIR LECTURES HALFWAY THROUGH THE CLASS PERIOD TO FORCE STUDENTS TO COMPLETE AT THEIR DESKS ASSIGNMENTS THEY USED TO DO AT HOME A HIGH SCHOOL ENGLISH TEACHER IN A SUBURBAN OHIO SCHOOL DISTRICT SAYS THAT IF SHE DOESN'T LEAVE TIME FOR STUDENTS TO READ CLASSIC WORKS OF LITERATURE DURING CLASS THEY WON'T DO IT AT ALL BUT THAT LEAVES LESS TIME FOR INSTRUCTION AND GIVEANDTAKE BETWEEN TEACHERS AND STUDENTS MOREOVER IT CHEATS STUDENTS WHO DO COMPLETE THEIR HOMEWORK AT NIGHT OTHER TEACHERS WATER DOWN ASSIGNMENTS HARRY GAFFNEY PRINCIPAL OF WARREN G HARDING MIDDLE SCHOOL IN PHILADELPHIA SAYS TEACHERS INCREASINGLY TRY TO KEEP THE HOMEWORK PRACTICAL TO INCREASE THE CHANCES THAT IT WILL BE COMPLETED A TYPICAL MATH PROBLEM HE SAYS REQUIRES STUDENTS TO PRETEND THEY'RE BUYING A RUG AND TO MEASURE THE SQUARE FOOTAGE OF THEIR BEDROOM AN ENGLISH ASSIGNMENT ASKS STUDENTS TO WRITE A LETTER OF COMPLAINT TO A FICTITIOUS MAILORDER COMPACT DISK COMPANY THAT HAS SENT THE WRONG ALBUM CHERYL KOCAY WHO TEACHES HOME ECONOMICS AT LANGLEY HIGH SCHOOL IN PITTSBURGH SAYS SHE HAS BEEN FORCED TO WATER DOWN THE QUANTITY AND QUALITY OF HOMEWORK SHE ASSIGNS BECAUSE SO LITTLE OF IT GETS DONE BUT EVEN THE EASIEST ASSIGNMENTS GO UNCOMPLETED MS KOCAY RECENTLY ASKED A FOOD TECHNOLOGY CLASS TO INTERVIEW FAMILY MEMBERS ABOUT THEIR EATING HABITS AND FILL OUT A ONEPAGE FORM ONLY A SMALL FRACTION OF THE CLASS COMPLETED THE ASSIGNMENT AS IN SO MANY COMMUNITIES IN TINY HAMILTON TEXAS HOMEWORK TAKES SECOND AND THIRD PLACE TO TEAM SPORTS AND OTHER EXTRACURRICULAR ACTIVITIES CONSIDER THE BRIEF TIME CLIFFORD AND DEREK NICHOLS BROTHERS AND FOOTBALL PLAYERS SPEND DOING HOMEWORK DEREK 14 SAYS HE DOES AT MOST 20 MINUTES A NIGHT WHILE CLIFFORD 17 AVERAGES 30 MINUTES TO AN HOUR IT WOULD BE IMPOSSIBLE TO FIT MORE HOMEWORK INTO THEIR SCHEDULES THE BOYS SAY BECAUSE FOOTBALL PRACTICE TAKES UP SO MUCH TIME AFTER SCHOOL MOSTLY I FINISH MY HOMEWORK DURING CLASS SAYS CLIFFORD SOME SCHOOLS ARE FIGHTING BACK IN PHILADELPHIA WARREN G HARDING MIDDLE SCHOOL ENCOURAGES CHILDREN TO SPEND HALF THEIR LUNCH PERIOD DOING HOMEWORK TEACHERS AT THE INNER CITY SCHOOL ARE ASKED TO DESIGN HOMEWORK THAT'S MEANINGFUL FOR KIDS WHO FOR THE MOST PART DON'T HAVE A DESK OR QUIET PLACE TO WORK AT HOME OR A PARENT WITH TIME TO HELP THEM SOME SCHOOL DISTRICTS ACROSS THE COUNTRY HAVE SET UP HOMEWORK HOTLINES THAT PARENTS CAN CALL TO GET THEIR CHILDREN'S ASSIGNMENTS PHILLIPS ELEMENTARY SCHOOL IN PITTSBURGH ASSIGNS SIMPLE SCIENCE EXPERIMENTS FOR CHILDREN AND THEIR PARENTS TO DO TOGETHER STILL THE SCHOOL FINDS IT MUST REMIND PARENTS TO CONVERSE WITH THEIR CHILDREN WHILE THEY'RE WATCHING TELEVISION WHICH IS OFTEN THE ONLY TIME THEY'RE TOGETHER ANOTHER LOCAL SCHOOL GREENWAY MIDDLE SCHOOL IS CONSIDERING EVENING TUTORIALS FOR PARENTS TO TEACH THEM HOW TO HELP THEIR CHILDREN WITH HOMEWORK IN COLORADO ADAMS CITY HIGH SCHOOL STUDENTS ARE DOING MORE HOMEWORK BECAUSE OF AN OVERHAUL IN SCHEDULING AS IN MANY COLLEGES CLASSES ARE HELD ON ALTERNATING DAYS BUT NOW RUN LONGER 90 MINUTES UP FROM 50 MINUTES THE NEW BLOCK SCHEDULING PLAN INSTITUTED THIS YEAR GIVES TEACHERS MORE INSTRUCTION TIME AND INVITES STUDENTS TO SEEK HELP FROM TEACHERS BETWEEN CLASSES ON HOMEWORK ASSIGNMENTS SEE RELATED LETTER LETTERS TO THE EDITOR HOMEWORK PAYS OFF WSJ NOV 19 1993 9310110012 9311100176 YY93 MM11 9311240038 931022 POTOMAC WATCH WHY LIBERALS REALLY HATE NEWTONIAN POLITICS BY PAUL A GIGOT I GUESS THE NIHILIST CAUCUS WAS BIGGER THAN THEY THOUGHT SAYS A SMILING NEWT GINGRICH THE GEORGIA REPUBLICAN IS ENTITLED TO THIS IRONIC QUIP A REBUKE TO A REPORTER FROM THIS NEWSPAPER WHO RECENTLY CALLED HIM A NIHILIST MR GINGRICH CAN NOW MOUNT THAT COMMENTARY ON HIS OFFICE WALL WITH THE OTHER COMPLIMENTS THE BELTWAY ESTABLISHMENT HAS PAID HIM MCCARTHYESQUE FIREBREATHER BOMBTHROWER ROBESPIERRE AGITPROP SPECIALIST ARCHCONSERVATIVE GUERRILLA FIGHTER AND MY PERSONAL FAVORITE GREAT THUNDER LIZARD THE LIZARD MAY LAUGH LAST HOWEVER BECAUSE HE IS ABOUT TO BECOME THE NEXT LEADER OF THE HOUSE REPUBLICANS BY ACCLAMATION HIS ONLY OPPONENT DROPPED OUT LAST WEEK AFTER COUNTING VOTES SO EVEN BEFORE THE FORMAL ELECTION NEXT YEAR POWER IS ALREADY FLOWING TO THE 50YEAROLD FORMER HISTORY TEACHER THIS IS BAD NEWS FOR PRESIDENT CLINTON AND APPARENTLY FOR THE PRESS WHICH MUST BE IN SHOCK BECAUSE IT'S BARELY REPORTED THE STORY IT GETS WORSE MR GINGRICH IS POISED TO BECOME LEADER WHEN REPUBLICANS ARE POISED TO HAVE THEIR BIGGEST HOUSE MEMBERSHIP SINCE THE 1950S WITH 176 SEATS NOW REPUBLICANS NEED TO PICK UP ONLY 16 NEXT YEAR TO MATCH THEIR MOST RECENT HIGH OF 192 IN 1980 THE PARTY'S TOTAL OF 201 SEATS IN 1956 ISN'T OUT OF REACH BY 1996 ROBESPIERRE COULD EVEN BE SPEAKER HAVE REPUBLICANS LOST THEIR MINDS OR DOES SOMETHING OTHER THAN TEMPORARY INSANITY EXPLAIN THE GINGRICH ASCENSION BRET SCHUNDLER THINKS SO I THINK IT'S THE BEST THING TO HAPPEN TO THE PARTY IN YEARS SAYS JERSEY CITY'S NEW REFORM MAYOR ADDING THAT MANY OF HIS OWN IDEAS WERE INSPIRED BY MR GINGRICH VIN WEBER THE FORMER GOP CONGRESSMAN SAYS THE ASCENSION MEANS THE TRIUMPH OF THE CONSERVATIVE OPPORTUNITY SOCIETY INSURGENCY THAT THEY BOTH BEGAN IN THE HOUSE A DECADE AGO MR GINGRICH WILL SOON BE AN ALTERNATIVE GOP SPOKESMAN TO SENATE LEADER BOB DOLE MR WEBER SAYS AND I THINK THE HOUSE REPUBLICANS ARE GOING TO SET THE PARTY AGENDA FOR 1996 MR WEBER KNOWS THAT MR GINGRICH IS MORE REVOLUTIONARY THAN EVEN HIS REPUTATION AS A CAUSTIC PARTISAN SUGGESTS HE DOESN'T WANT MERELY TO DEFEAT DEMOCRATS HE WANTS TO DEFEAT THEIR VISION OF HOW AMERICA SHOULD BE GOVERNED AFTER THE BUSH ABDICATION MR GINGRICH WANTS TO REVIVE THE GOP AS A REFORM PARTY THAT OFFERS A DIFFERENT VISION OF THE FUTURE WE ARE THE REFORM THREAT TO THE WELFARE STATE MR GINGRICH SAYS THAT'S WHY DEMOCRATS THINK I'M A NIHILIST THIS IS THE REAL SECRET OF HIS HOUSE SUCCESS FOR HIS MESSAGE APPEALS TO A YOUNGER GENERATION TIRED OF LETTING DEMOCRATS CONTROL THE TERMS OF POLITICAL DEBATE THE FIRST LAW OF NEWTONIAN POLITICS IS THAT INSTEAD OF JUST SAYING NO REPUBLICANS SHOULD OFFER AN ALTERNATIVE THAT TARGETS THE PREMISES OF THE WELFARE STATE FOR EXAMPLE THIS WEEK HE PLOTTED STRATEGY WITH RICHARD RIORDAN THE NEW LOS ANGELES MAYOR THEY WANT TO ATTACK UNFUNDED MANDATES OR FEDERAL LAWS THAT REQUIRE SPENDING THAT BREAKS LOCAL BUDGETS MR GINGRICH SAYS ONE SUCH MANDATE WILL SOON FORCE LOS ANGELES TO MAKE ITS PUNY RIVER NEARLY AS CLEAN AS DRINKING WATER SO THAT WHEN YOU ARE KILLED STANDING NEXT TO THE RIVER YOU CAN FALL INTO THE CLEANEST WATER IN THE WORLD HE CRACKS MR GINGRICH HOPES TO FASHION A BILL THAT WOULD BAR SUCH MANDATES LETTING CITIES SPEND SOME OF THE SAVINGS ON COPS AND PUBLIC SAFETY A HIGHER VOTER PRIORITY YOU HAVE TO OFFER A BETTER PRODUCT HE SAYS SO THAT VOTERS BEGIN TO UNDERSTAND THAT LESS CAN BE MORE NOT THAT LESS IS LESS HIS STRATEGY IS TO UNLEASH YOUNGER REPUBLICANS TO DO SUCH THINKING ACROSS THE ENTIRE DOMESTIC AGENDA SO JOHN KASICH OF OHIO HAS TAKEN ON THE BUDGET WINNING 132 GOP VOTES FOR DEEP SPENDING CUTS ILLINOIS'S DENNIS HASTERT RIDES POINT ON HEALTH CARE OKLAHOMA REP JIM INHOFE TORMENTS DEMOCRATS ON HOUSE REFORM AND SO ON BY HELPING CREATE SUCH STARS MR GINGRICH ALSO BUILDS LOYALTY TO HIS OWN LEADERSHIP AS FOR RESISTING BILL AND HILLARY CLINTON HIS STRATEGY IS SLOW EVERYTHING DOWN THEY ARE GREAT SALESMEN HE SAYS SO THE TRICK IS TO GIVE AMERICANS TIME TO INSPECT WHAT THEY'RE SELLING HE CALLS THE PAIR TOTALLY EXISTENTIAL BY WHICH HE MEANS SO POLITICALLY EXPEDIENT THEY WILL ACCOMMODATE WHATEVER POLITICAL PRESSURE EXISTS HE TESTED THAT THEORY THIS WEEK BY APPENDING HIS NAME TO A GOP LETTER PROTESTING A CLINTON PLAN TO RAISE 25 BILLION IN TAXES TO PAY FOR NAFTA THE PRESIDENT SOON CALLED WHAT'D HE SAY HOW CAN I ACCOMMODATE YOU MR GINGRICH SAYS SMILING AGAIN THE GEORGIAN HAS WEAKNESSES NOT LEAST A SUPREME EGO THAT CAN SEND HIM CHASING INTELLECTUAL FADS A FEW YEARS AGO WHEN TEXTILE PROTECTIONIST ROGER MILLIKEN WAS A BENEFACTOR MR GINGRICH THOUGHT ECONOMIC NATIONALISM WAS A GOP BONANZA HE HAS SINCE MATURED AND NOW SUPPORTS NAFTA AND OPEN TRADE AND WHILE HE CAMPAIGNS AS AN OUTSIDER MR GINGRICH IS PERSONALLY CONSUMED ENOUGH BY POLITICS TO BE THE SORT OF CAREERIST WHO IS SO COMMON AMONG HOUSE DEMOCRATS BUT PERHAPS ONLY SUCH A REPUBLICAN PROFESSIONAL CAN BE A MATCH FOR THE RELENTLESS LIBERALS WHO HAVE DOMINATED THE HOUSE FOR 40 YEARS MAYBE LIBERALS AND THEIR MEDIA ECHOES HATE MR GINGRICH SO MUCH BECAUSE THEY SEE IN HIM THE SAME STRATEGIC CRAFTINESS THEY SEE IN THEMSELVES SEE RELATED LETTER LETTERS TO THE EDITOR GINGRICH REVOLUTIONARY CENTRIST' WSJ NOV 19 1993 9310220041 YY93 MM11 9311240109 930914 UNEQUAL OPPORTUNITY LOSING GROUND ON THE EMPLOYMENT FRONT LOSING GROUND IN LATEST RECESSION ONLY BLACKS SUFFERED NET EMPLOYMENT LOSS FIRMS ADDED WHITES ASIANS AND HISPANICS OVERALL BUT THEY DENY ANY BIAS EFFECTS OF SENIORITY LOCATION BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL THE LAST RECESSION SERIOUSLY ERODED EQUAL OPPORTUNITY FOR AMERICA'S BLACK WORKERS BLACKS WERE THE ONLY RACIAL GROUP TO SUFFER A NET JOB LOSS DURING THE 199091 ECONOMIC DOWNTURN AT THE COMPANIES REPORTING TO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WHITES HISPANICS AND ASIANS MEANWHILE GAINED THOUSANDS OF JOBS ACCORDING TO A WALL STREET JOURNAL ANALYSIS OF EEOC RECORDS THE COMPUTERAIDED STUDY SHOWS THAT SOME OF THE NATION'S LARGEST CORPORATIONS SHED BLACK EMPLOYEES AT THE MOST DISPROPORTIONATE RATE AT DIAL CORP FOR INSTANCE BLACKS LOST 436 OF THE JOBS CUT EVEN THOUGH THEY REPRESENTED 263 OF DIAL'S WORK FORCE GOING INTO THE RECESSION AT WR GRACE & CO THEY HELD 322 OF THE JOBS CUT WHILE THEY ACCOUNTED FOR 131 OF THE COMPANY'S PRERECESSION PAYROLL AT BANKAMERICA CORP AND ITT CORP BLACKS LOST JOBS AT MORE THAN TWICE THE RATE OF THEIR COMPANIES' OVERALL WORKFORCE REDUCTIONS COMPANIES SAY THE SUDDEN DEMOGRAPHIC SHIFT IS A STATISTICAL FLUKE THE UNINTENTIONAL FALLOUT OF CORPORATE CUTBACKS AND REORGANIZATIONS BUT SOME CIVILRIGHTS ADVOCATES ARGUE THAT SOMETHING MORE INSIDIOUS IS GOING ON THIS IS SUBCONSCIOUS DEEPSEATED RACISM SAYS GEORGE FRASER WHO PUBLISHES DIRECTORIES OF BLACK PROFESSIONALS PEOPLE DON'T EVEN KNOW THESE PATTERNS AND BEHAVIORS ARE BEING INITIATED UNTIL YOU BEGIN TO SEE THE PIECES OF THE PUZZLE TOGETHER AND LOOK AT THE NUMBERS IN AN ANALYSIS OF THE 35242 COMPANIES THAT FILED EEOC REPORTS FOR MORE THAN 40 MILLION WORKERS IN BOTH 1990 AND 1991 THE JOURNAL FOUND BLACKS LOST A NET 59479 JOBS AT THESE BUSINESSES DURING THE RECESSION WHICH OFFICIALLY BEGAN IN JULY 1990 AND ENDED IN MARCH 1991 OVERALL BLACKS' SHARE OF JOBS AT THE COMPANIES DROPPED FOR THE FIRST TIME IN NINE YEARS WIPING OUT THREE YEARS OF GAINS BLACK EMPLOYMENT AT THE COMPANIES FELL IN 36 STATES AND IN SIX OF NINE MAJOR INDUSTRY GROUPS BY CONTRAST ASIANS AND HISPANICS WHO IN RECENT YEARS HAVE BECOME MORE VOCAL ABOUT GETTING THEIR SHARE OF JOBS BOTH MADE GAINS ASIANS GAINED A NET 55104 JOBS DURING THE RECESSION AND HISPANICS A NET 60040 JOBS WHITES WHO OUTNUMBER BLACKS NEARLY EIGHT TO ONE AT THESE COMPANIES GAINED 71144 JOBS BLACK WORKERS WERE ESPECIALLY HARD HIT IN BLUECOLLAR JOBS LOSING NEARLY ONETHIRD OF THE NET 180210 SUCH SLOTS LOST THEY WERE THE ONLY GROUP TO LOSE SERVICEWORKER POSITIONS DROPPING 16630 SUCH JOBS WHILE BUSINESSES ADDED 53548 NEW ONES THEY WERE THE ONLY GROUP TO LOSE SALES JOBS BLACKS DID SHOW SOME PROGRESS IN SEVERAL HIGHLY PRIZED WHITECOLLAR JOB CATEGORIES THEY GAINED A DISPROPORTIONATELY HIGH NUMBER OF MANAGERIAL PROFESSIONAL AND TECHNICAL JOBS BUT THEY HELD SUCH A SMALL PERCENTAGE OF THESE JOBS BEFORE THE RECESSION BEGAN THAT THEIR ACTUAL GAINS WERE MEAGER COMPANIES ADDED A NET 2719 BLACK MANAGERS DURING THE RECESSION BRINGING THE 1991 NUMBER TO 248915 WHICH IS JUST 52 OF THE TOTAL FOR ALL RACES EVEN WITH THE JOB LOSSES BLACK WORKERS REPRESENT A HIGHER SHARE OF THE STAFFS OF EEOC COMPANIES THAN OF THE US POPULATION 118 OR OF THE OVERALL US WORK FORCE 104 CONSIDERING THE SIZE AND LOCATIONS OF THE EEOC COMPANIES THEY COULD BE EXPECTED TO HAVE MORE THAN THE NATIONWIDE PROPORTION OF BLACK WORKERS YET BLACKS WHO ACCOUNTED FOR 125 OF THE WORK FORCE OF COMPANIES FILING WITH THE EEOC NOT ONLY LOST A DISPROPORTIONATELY HIGH SHARE OF JOBS IN COMPANIES THAT CUT STAFF BUT ALSO GAINED A DISPROPORTIONATELY LOW SHARE OF POSITIONS ADDED DURING THE RECESSION THEY LOST 15 OF THE JOBS AT THE ROUGHLY HALF OF EEOC FIRMS THAT HAD NET EMPLOYMENT CUTS AND GAINED JUST 114 OF NEW JOBS AT FIRMS THAT ADDED STAFF THE RECESSION IN AMERICA MEANS DEPRESSION IN THE BLACK COMMUNITY SAYS CAROL MASSEY PRESIDENT OF THE LOS ANGELES CHAPTER OF THE NATIONAL BLACK MBA ASSOCIATION THE LOSSES CAN BE PARTIALLY EXPLAINED BY BLACKS' RELATIVELY LOW SENIORITY IN COMPANIES AND THEIR HEAVY CONCENTRATION IN THE TYPES OF JOBS ELIMINATED CORPORATIONS' CONTINUING DECISIONS TO ABANDON INNERCITY OFFICES FACTORIES OR FRANCHISE OUTLETS DIDN'T HELP BLACKS EITHER BUT THE DEMOGRAPHIC CHANGE SUGGESTS SOMETHING MORE FUNDAMENTAL HAS OCCURRED A PRONOUNCED SHIFT IN THE WAY AFFIRMATIVE ACTION OPERATES SEVERAL COMPANIES WITH POOR RECORDS OF RETAINING BLACKS SAY THEY WERE MOSTLY CONCERNED WITH THEIR AGGREGATE MINORITY EMPLOYMENT RATES AND NEVER CALCULATED WHETHER BLACKS BORE A DISPROPORTIONATE SHARE OF CUTBACKS THUS THEY COULD CLAIM TO THE GOVERNMENT CONTINUED PROGRESS BY MINORITIES AS A WHOLE EVEN AS BLACKS WERE SUFFERING REVERSALS IN SOME CASES DRAMATIC ONES BLACK WORKERS HAD THEIR BIGGEST SETBACKS AT RETAILERS ABOUT HALF OF THEIR LOSSES WERE IN RETAILING WHERE BLACKS LOST JOBS AT A 50 HIGHER RATE THAN THE OVERALL WORK FORCE AT SEARS ROEBUCK & CO FOR EXAMPLE BLACKS LOST 543 OF JOBS CUT ACCORDING TO THE COMPANY'S ORIGINAL FILING WITH THE EEOC AFTER EXTENSIVE INTERVIEWS WITH THE JOURNAL THE COMPANY SAID IT HAD DISCOVERED A GARGANTUAN ADDITION ERROR IN THE NUMBERS IT GAVE THE GOVERNMENT AND PRINTED IN ITS ANNUAL REPORTS FOR THREE YEARS A MISTAKE THAT EXAGGERATED BLACKS' PROPORTION OF JOB LOSSES THE REVISED RECORDS WHICH THE EEOC IS NOW INVESTIGATING FOR ACCURACY STILL SHOW BLACKS LOSING A DISPROPORTIONATE 20 OF THE JOBS CUT BY SEARS THE COMPANY'S WORK FORCE WAS 158 BLACK IN 1990 SEARS SAYS ITS BLACK WORK FORCE WASN'T HURT BECAUSE OF INATTENTION TO DIVERSITY BUT BY THE NEED TO ELIMINATE EXPENSIVE DISTRIBUTION CENTERS IN THE INNER CITIES THE GIANT RETAILER CLOSED TWO MAJOR URBAN DISTRIBUTION CENTERS IN 1991 RELOCATING PART OF THE OPERATIONS TO SUBURBS LARGELY INACCESSIBLE TO BLACKS WITHOUT CARS IT'S NOT LIKE WE SET OUT TO ELIMINATE BLACK JOBS SAYS A SEARS SPOKESMAN WE SET OUT TO STREAMLINE OUR CATALOG AND DISTRIBUTION CENTERS TO MAKE THEM MORE COMPETITIVE THE CENTERS BUILT IN THE EARLY 1900S HAD BEEN DESIGNED TO HOUSE RELATIVELY SMALL MERCHANDISE AND BE ACCESSIBLE TO RAILROADS THE SPOKESMAN SAYS THE NEW ONES HE SAYS ARE BUILT IN THE SUBURBS TO BE MORE CONVENIENT TO TRUCKS BUT SEVERAL FORMER BLACK MANAGERS AT SEARS BELIEVE THAT CORPORATE INDIFFERENCE TOWARD AFFIRMATIVE ACTION CAUSED THEM PROBLEMS DURING THE RECESSION AND THAT THIS ATTITUDE GREW THROUGHOUT THE 1980S AS FEDERAL ENFORCEMENT DECLINED IT APPEARED THE COMPANY DISCONTINUED ITS EMPHASIS ON HAVING A DIVERSIFIED WORK FORCE SAYS BOB JOHNSON SEARS'S FIRST BLACK VICE PRESIDENT WHO RETIRED IN 1991 LIKE SEARS MOST COMPANIES SAY BLACKS' JOB LOSSES WERE COMPLETELY UNRELATED TO AFFIRMATIVE ACTION AT WR GRACE FOR INSTANCE WHERE BLACKS LOST JOBS AT MORE THAN TWICE THE RATE OF OVERALL WORKFORCE CUTS OFFICIALS SAY THE DROP WAS DUE ENTIRELY TO GRACE'S EXTENSIVE RESTRUCTURING THIS ISSUE HAS NOTHING TO DO WITH DIVERSITY SAYS FRED BONA A COMPANY SPOKESMAN THE RESTRUCTURING HAS TO DO WITH A WORLDWIDE BUSINESS STRATEGY INVOLVING WHICH BUSINESSES WE SHOULD BE IN THE COMPANY SOLD SEVERAL BUSINESSES UNRELATED TO ITS BASIC CHEMICAL MANUFACTURING WORK SUCH AS RESTAURANTS HE SAYS HE ARGUES THAT BLACKS' SHARE OF GRACE'S WORK FORCE ROSE IF ONE EXCLUDES A MEXICAN FASTFOOD BUSINESS THAT WAS PARTIALLY DIVESTED BUT SOME BLACK EMPLOYEES COMPLAIN OF PERSISTENT RACIAL BIAS THEY ARE VERY VERY PREJUDICED FRANK BELLOW A MACHINIST SAYS OF GRACE'S MANAGEMENT AT ITS LAKE CHARLES LA CATALYST MANUFACTURING PLANT WHEN THE COMPANY MAKES PERSONNEL DECISIONS HE ASSERTS THEY REVERT TO THE OLD JIM CROW WAYS MR BONA SAYS GRACE HAS ADDRESSED THE BLACK EMPLOYEES' COMPLAINTS CRITICS CONSIDER MANY COMPANIES' EXPLANATIONS ABOUT BLACK JOB LOSSES HOLLOW EXCUSES DESIGNED TO HIDE UNSPOKEN BIAS CHARGES WESLEY PORIOTIS WHO HEADS WESLEY BROWN & BARTLE ONE OF THE NATION'S OLDEST MINORITY SEARCH FIRMS THERE'S A DEEP SOURNESS IN CORPORATE AMERICA THAT THEY HAD TO HIRE MINORITY PROFESSIONALS DOWNSIZING HAS BEEN THEIR FIRST OPPORTUNITY TO STRIKE BACK FOR MANY FIRMS THAT CUT A HIGH PERCENTAGE OF BLACKS IN THE RECESSION THE REASONS ARE THE SAME THEY CLOSED OR SOLD OPERATIONS IN INNER CITIES BUT WHETHER THE CUTBACKS REFLECT BIAS ISN'T EASILY CLEAR MCDONALD'S CORP FOR INSTANCE SAYS THE STATISTIC THAT BLACKS ACCOUNTED FOR 365 OF ITS JOB LOSSES IN THE 199091 PERIOD MERELY REFLECTS THE SALE OF 270 COMPANYOWNED RESTAURANTS TO FRANCHISEES WHILE MOST OF THESE BLACKS PROBABLY NOW HAVE JOBS WITH THE NEW FRANCHISEES THE CORPORATE SWITCH COULD INDICATE MCDONALD'S WAS UNLOADING MANY OF ITS INNERCITY RESTAURANTS TO BLACKS THE FASTFOOD CHAIN DECLINES TO SAY WHERE THE STORES ARE LOCATED BUT CONTENDS THE CHANGES REFLECT NOTHING ABOUT ITS INNERCITY POLICIES YET WHAT LOOKS LIKE ABANDONING THE INNER CITY MAY REALLY BE GIVING ECONOMIC OPPORTUNITY TO AN UNDERPRIVILEGED GROUP EVEN ATTORNEYS WHO SUED MCDONALD'S ON BEHALF OF BLACK FRANCHISEES CREDIT THE COMPANY WITH GIVING BLACKS LIBERAL FRANCHISING TERMS MAKING IT POSSIBLE FOR SOME TO OWN A BUSINESS FOR THE FIRST TIME IN THEIR LIVES GEOGRAPHY PLAYS A MAJOR ROLE IN BLACKEMPLOYMENT PATTERNS AT BANKAMERICA BLACKS DID POORLY DURING THE RECESSION BECAUSE OF ATTRITION COMBINED WITH THE FACT THAT THE COMPANY EXPANDED IN STATES THAT HAVE LOW BLACK POPULATIONS SUCH AS ARIZONA AND NEW MEXICO SAYS SPOKESMAN RUSS YARROW BLACKS ACCOUNTED FOR 281 OF THE LOST JOBS EVEN THOUGH THEY MADE UP JUST 79 OF THE COMPANY'S WORK FORCE BEFORE THE RECESSION COMPANIES SAY THEY DIDN'T DELIBERATELY REDUCE THEIR BLACK WORK FORCES A HIGH PERCENTAGE OF BLACKS GOT LAID OFF THOUGH BECAUSE THEY HELD MORE OF THE JOBS COMPANIES DECIDED TO ELIMINATE ITT SAYS ITS BLACK WORK FORCE WAS HURT WHEN IT STOPPED MANAGING THE SHERATON HOTELS IN DALLAS ST LOUIS AND WEST PALM BEACH FLA BLACKS ACCOUNTED FOR 274 OF THE JOBS LOST AT ITT DURING THE ECONOMIC SLUMP DESPITE CONSTITUTING 118 OF THE COMPANY'S PRERECESSION WORK FORCE PRIMARILY BECAUSE OF THESE HOTEL LOSSES SAYS JIM GALLAGHER AN ITT SPOKESMAN BLACKS HELD 402 OF THE 1109 JOBS AT THESE HOTELS MAINLY AS WAITRESSES AND ROOM ATTENDANTS HE SAYS IN MOST COMPANIES BLACKS WERE CONCENTRATED IN THE MOST EXPENDABLE JOBS MORE THAN HALF OF ALL BLACK WORKERS HELD POSITIONS IN THE FOUR JOB CATEGORIES WHERE COMPANIES MADE NET EMPLOYMENT CUTS OFFICE AND CLERICAL SKILLED SEMISKILLED AND LABORERS ACCORDING TO EEOC RECORDS MANY COMPANIES MAY NOT EVEN REALIZE HOW THEIR BLACK EMPLOYMENT SHIFTED DURING THE RECESSION PERSONNEL EXECUTIVES OFTEN FOCUS PRIMARILY ON MINORITIES' OVERALL PROGRESS IN PART BECAUSE THAT IS WHAT THE FEDERAL GOVERNMENT FOCUSES ON WHEN IT EVALUATES AFFIRMATIVEACTION EFFORTS EVEN AT COMPANIES WITH AGGRESSIVE DIVERSITY PROGRAMS SUCH AS DIAL BLACK WORKERS CAN LOSE GROUND DIAL SAYS ITS ATTORNEYS CAREFULLY REVIEWED LAYOFF PLANS FOR ADVERSE IMPACT BEFORE ANY DOWNSIZING TOOK PLACE BUT COMPANY OFFICIALS SAY THEY ASSESSED THE EFFECT ON OVERALL MINORITY AND FEMALE EMPLOYMENT RATHER THAN ON BLACKS HISPANICS OR ASIANS SEPARATELY BLACKS AT DIAL LOST JOBS AT A RATE TWOTHIRDS HIGHER THAN DID ITS WORK FORCE AS A WHOLE DIAL'S OVERALL RECORD FOR MINORITIES HOWEVER LOOKS EXEMPLARY ESPECIALLY IF WHITE FEMALES ARE INCLUDED BECAUSE DIAL ADDED ASIANS AND AMERICAN INDIANS AND LAID OFF A DISPROPORTIONATELY SMALL PERCENTAGE OF WHITE WOMEN I FEEL CONFIDENT THAT THE PROCESS WE ESTABLISHED ENSURES EQUITABLE TREATMENT SAYS JOAN INGALLS DIAL'S VICE PRESIDENT OF HUMAN RESOURCES IT'S NOT APPROPRIATE TO OFFER PREFERENTIAL TREATMENT LIKE DIAL SEARS BOASTS OF INROADS MADE BY ITS MINORITY STAFF WHICH OCCURRED BECAUSE ASIANS AND HISPANICS FARED BETTER DURING THE RECESSION THAN SEARS'S OVERALL WORK FORCE COMPARING BLACKS' ACHIEVEMENTS TO OTHER MINORITIES IS A SKEWED POINT OF VIEW SAYS WILLIAM GIFFIN SEARS'S DIRECTOR OF HUMAN RESOURCES WHAT MATTERS HE SAYS IS SEARS'S OVERALL MINORITY EMPLOYMENT RECORD WHAT WE HOLD OUR MANAGERS ACCOUNTABLE FOR IS WORKFORCE DIVERSITY CIVILRIGHTS ATTORNEYS ARE SKEPTICAL OF SUCH EXPLANATIONS THE FIRST THING THAT MAKES ME SUSPICIOUS IS IF COMPANIES ARE AGGREGATING ALL THE MINORITIES TOGETHER SAYS BARRY GOLDSTEIN A PROMINENT CIVILRIGHTS LAWYER BUT THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS WHICH INVESTIGATES DISCRIMINATION AT BUSINESSES THAT RECEIVE GOVERNMENT MONEY DECIDES WHICH COMPANIES TO AUDIT BY ANALYZING THEIR RECORDS ON OVERALL MINORITY EMPLOYMENT ONLY AFTER COMPANIES ARE SELECTED FOR AN AUDIT WILL INVESTIGATORS CONSIDER EXAMINING RECORDS ON INDIVIDUAL ETHNIC OR RACIAL GROUPS SAYS ANNIE BLACKWELL THE PROGRAM'S POLICY DIRECTOR AND THEY WILL DO THE INDIVIDUAL ETHNIC ANALYSIS SHE SAYS ONLY IF THERE'S A REASON TO DO IT CIVILRIGHTS ADVOCATES ARGUE THAT UNDER THE GUISE OF FAIRNESS FOR ALL EMPLOYERS CAN HIDE DIFFERENTIAL TREATMENT OF BLACKS AFFIRMATIVE ACTION HAS GOTTEN SO DILUTED THAT COMPANIES CAN TRADE ONE MINORITY AGAINST THE OTHER SAYS AILEEN HERNANDEZ WHO WAS AN EEOC COMMISSIONER UNDER PRESIDENT JOHNSON FOR YEARS ADVOCATES SUCH AS MS HERNANDEZ HAVE CONSIDERED THE FEDERAL GOVERNMENT INEPT AS A WATCHDOG THEY COMPLAIN THAT AGENCIES SUCH AS THE EEOC BEGAN BEING TRIMMED DURING THE REAGAN ADMINISTRATION AND OFFICIALS STARTED PROMOTING THE NOTION OF LUMPING ALL MINORITIES TOGETHER TO TREAT THEM AS ONE BIG DISADVANTAGED GROUP THE EEOC ALSO SHIFTED ITS ENFORCEMENT EFFORTS AWAY FROM CLASSACTION SUITS AGAINST COMPANIES FOCUSING INSTEAD ON INDIVIDUAL CASES OF DISCRIMINATION AFFIRMATIVE ACTION WAS WEAKENED EVEN MORE DURING THE RECESSION BECAUSE OF A SERIES OF SUPREME COURT DECISIONS THAT MADE IT HARDER FOR INDIVIDUALS TO SUE COMPANIES FOR DISCRIMINATION BY THE LATE 1980S COMPANIES WERE MUCH MORE FEARFUL OF PRIVATE LITIGATORS THAN THE GOVERNMENT SAYS JONATHAN LEONARD A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY WHO STUDIES WORKPLACE DISCRIMINATION WITH THE COURT'S WARDS COVE DECISION IN 1989 WHICH MADE IT TOUGHER FOR MINORITIES TO USE STATISTICS TO PROVE RACIAL BIAS COMPANIES SUDDENLY BECAME NEARLY IMMUNE TO JOB DISCRIMINATION CHALLENGES UNTIL THE CIVIL RIGHTS ACT WAS PASSED IN 1991 HE ARGUES AT SEARS MR JOHNSON THE FORMER VICE PRESIDENT AND OTHER BLACK EMPLOYEES SAY THEY FELT THE IMPACT OF REAGAN AND BUSH ADMINISTRATION POLICIES ALMOST IMMEDIATELY THEY SAW THE GOVERNMENT'S BROADBASED RACE AND GENDER DISCRIMINATION INVESTIGATION INTO SEARS DURING THE LATE 1970S TRANSFORMED INTO A WEAK SEXDISCRIMINATION CASE IN THE 1980S THAT THE COMPANY ULTIMATELY WON AND IN THE MIDDLE OF THE EEOC'S LAWSUIT AGAINST SEARS THEY WATCHED THENSEARS CHAIRMAN EDWARD TELLING STOP DOING BUSINESS WITH THE FEDERAL GOVERNMENT TO PROTEST WHAT HE PERCEIVED AS THE LABOR DEPARTMENT'S CAMPAIGN OF HARASSMENT WHAT RESULTED SAYS MR JOHNSON WAS A GRADUAL STEADY EROSION OF BLACK WORKERS THAT OCCURRED QUIETLY AND WITH LITTLE DISCUSSION THE NUMBER OF BLACKS WHO HELD THE KEY BUYERS' JOBS DWINDLED FROM 25 IN 1981 TO 14 IN 1985 TO SEVEN OR EIGHT IN 1990 HE SAYS SEARS WON'T RELEASE THE NUMBERS BUT SAYS THE DROP OF BLACKS WAS PROPORTIONAL THE REDUCTION WASN'T DUE TO ANY DELIBERATE CAMPAIGN TO ELIMINATE BLACKS MR JOHNSON AND OTHERS SAY IT WAS A COMBINATION OF THE OLDBOY NETWORK PLAYING A STRONGER ROLE DURING LAYOFF DECISIONS THEY SAY PLUS BLACK WORKERS GETTING SO DISCOURAGED BY THE ATMOSPHERE THAT THEY BECAME EAGER TO TAKE EARLY RETIREMENT BUYOUTS BARBARA SAMUELS WHO JOINED SEARS IN 1963 SAYS SHE TOOK EARLY RETIREMENT AT AGE 54 IN 1991 BECAUSE I FELT THE PLACE WAS BEING DETRIMENTAL TO MY MENTAL AND PHYSICAL HEALTH ONE MONTH AFTER SHE WAS NAMED THE COMPANY'S BUYER OF THE YEAR IN 1987 SHE SAYS HER BOSS GAVE HER A PERFORMANCE EVALUATION OF ONLY MEETS EXPECTATIONS ANOTHER SUPERVISOR DELIGHTED IN TELLING ETHNIC AND SEXIST JOKES AROUND HER SHE SAYS SEARS DECLINES TO COMMENT ON MS SAMUELS'S EXPERIENCE BUT A SPOKESMAN SAYS IT HAS STRIVED TO CREATE A WORK ENVIRONMENT THAT IS SENSITIVE TO EMPLOYEES ALTHOUGH BLACKS BORE A DISPROPORTIONATE SHARE OF JOB LOSSES AT SEARS IN THE RECESSION THEIR SHARE OF THE SEARS WORK FORCE 1585 WAS NOTABLY HIGHER THAN BLACKS' REPRESENTATION IN THE OVERALL US WORK FORCE CERTAINLY MANY WHITES LOST THEIR JOBS DURING CORPORATE DOWNSIZINGS TOO BUT BLACKS SAY THEY BEGAN TO NOTICE THAT AT LEAST SOME OF THEIR WHITE COUNTERPARTS WOULD EVENTUALLY BE HIRED BACK TO TAKE JOBS IN THE NEWLY RESTRUCTURED DIVISIONS SOMETHING THAT RARELY HAPPENED TO THEM IT'S THE OLD FBI SYNDROME FRIENDS BROTHERS AND INLAWS SAYS BILL HAWKINS WHO RUNS A SEARCH FIRM IN LOS ANGELES IF YOU DON'T HAVE AN FBI YOU'RE IN A GOOD POSITION TO LOSE YOUR POSITION BLACKS WHO HELD JOBS INVOLVING PUBLIC CONTACT HAD AN ESPECIALLY ROUGH TIME DURING THE RECESSION EEOC RECORDS SHOW THEY LOST 5823 SALES JOBS OVERALL IN 1991 FOR INSTANCE EVEN THOUGH COMPANIES ADDED A NET TOTAL OF MORE THAN 63000 WHITE ASIAN AND HISPANIC SALES WORKERS THERE'S A CONTINUING PROBLEM THAT WHITE COMPANIES WILL NOT BUY FROM A BLACK SALESMAN SAYS JOHN WORK A CAREER CONSULTANT AND AUTHOR OF RACE ECONOMICS AND CORPORATE AMERICA AT LEAST ONE RECENT STUDY SUGGESTS THAT RACISM STILL PLAYS A ROLE IN SOME PERSONNEL DECISIONS IN 1990 THE URBAN INSTITUTE SENT OUT TEAMS OF BLACK AND WHITE JOB APPLICANTS WITH EQUAL CREDENTIALS THE MEN APPLIED FOR THE SAME ENTRYLEVEL JOBS IN CHICAGO AND WASHINGTON DC WITHIN HOURS OF EACH OTHER THEY WERE THE SAME AGE AND PHYSICAL SIZE HAD IDENTICAL EDUCATION AND WORK EXPERIENCE AND SHARED SIMILAR PERSONALITIES YET IN ALMOST 20 OF THE 476 AUDITS WHITES ADVANCED FARTHER IN THE HIRING PROCESS RESEARCHERS FOUND THE SIMPLE ANSWER IS PREJUDICE SAYS MARGERY TURNER A SENIOR RESEARCHER AT THE URBAN INSTITUTE INVOLVED IN THE STUDY CLEARLY BLACKS STILL SUFFER FROM UNFAVORABLE TREATMENT OF COURSE NOT ALL JOB APPLICANTS HAVE SIMILAR CREDENTIALS MOST BLACKS CAN'T EVEN BE CONSIDERED FOR HIGHLY SKILLED JOBS BECAUSE THEY DON'T HAVE ENOUGH EDUCATION ONLY 131 OF BLACKS IN THE WORK FORCE HAVE COLLEGE DEGREES COMPARED WITH 246 OF WHITES AND 386 OF ASIANS ACCORDING TO THE 1990 CENSUS THE BETTEREDUCATED ASIANS MANAGED TO GAIN JOBS EVEN IN STATES THAT CUT TENS OF THOUSANDS OF WORKERS OVERALL ASIANS GAINED JOBS IN MIDSIZE AND BIG BUSINESSES IN 39 STATES WHILE BLACKS LOST GROUND IN 36 STATES BLACKS WERE HIT PARTICULARLY HARD IN FLORIDA LOSING JOBS AT EEOC CORPORATIONS AT A RATE MORE THAN FIVE TIMES THAT OF THE OVERALL WORKFORCE REDUCTIONS THEY WERE THE ONLY RACIAL GROUP TO LOSE JOBS THERE AS WELL AS IN ILLINOIS WHERE 434 OF JOBS LOST WERE HELD BY BLACKS IN 1990 THEY REPRESENTED 134 OF ALL WORKERS IN THE STATE THEIR WORK FORCE WAS DEVASTATED IN NEW YORK WHERE THEY LOST MORE THAN 21000 OF THE 91746 JOBS CUT IN BUSINESSES AND THEY ALSO GOT SLAMMED IN CALIFORNIA LOSING MORE THAN 11000 OF THE 72230 JOBS ELIMINATED WHILE ASIANS WERE GAINING MORE THAN 9000 POSITIONS ONLY IN THREE SOUTHERN STATES ALABAMA ARKANSAS AND LOUISIANA DID BLACKS ADD A SUBSTANTIAL NUMBER OF JOBS WITH COMPARABLY LITTLE EDUCATION BLACKS OFTEN GET STUCK IN LOWER SKILLED BLUE COLLAR JOBS AND ONLY SENIORITY SAVES MANY BLUE COLLAR WORKERS FROM THE UNEMPLOYMENT LINE THESE DAYS SINCE BLACKS WERE OFTEN AMONG THE LAST HIRED FOR THESE JOBS THEY WERE FREQUENTLY THE FIRST TO GO AT USX CORP WHICH LOST NEARLY A TENTH OF ITS ALREADY DECIMATED WORK FORCE IN 1991 EMPLOYEES AT SOME PLANTS HAD TO HAVE ALMOST 20 YEARS' EXPERIENCE TO KEEP THEIR JOBS BLACKS LOST NEARLY 20 OF THOSE JOBS LOST AT THE COMPANY EVEN THOUGH THEY MADE UP JUST 126 OF THE WORK FORCE GOING INTO THE RECESSION DISCRIMINATION PROBLEMS IN THE STEEL INDUSTRY WERE SUPPOSED TO HAVE BEEN SOLVED IN THE 1970S WHEN THE EEOC REQUIRED COMPANIES TO CHANGE THEIR RULES ON PROMOTIONS AND TRANSFERS UNTIL THEN OPENINGS WEREN'T POSTED THROUGHOUT PLANTS AND PEOPLE WHO WANTED TO CHANGE DEPARTMENTS LOST THEIR SENIORITY INITIALLY THE CHANGES HELPED BLACKS GET BETTER JOBS EVEN IF THEY HAD BEEN HIRED INTO A DIRTY DANGEROUS UNIT THEY HAD THE CHANCE TO LEARN ABOUT AND ACCEPT BETTER POSITIONS KNOWING THEIR SENIORITY WAS SECURE BUT AT USX THE NEW RULES THAT ALLOWED BLACKS' ADVANCEMENT IN THE 1970S ENDED UP ACCELERATING THEIR JOB LOSSES IN THE 1980S WHEN THE COMPANY HAD MASSIVE LAYOFFS THAT'S BECAUSE OF USX'S PLANTWIDE LABOR POOL WHICH ALLOWED BLUECOLLAR WORKERS WHO WERE LAID OFF TO BUMP PEOPLE OUT OF JOBS IN OTHER DEPARTMENTS IF THEY MET QUALIFICATIONS AND HAD SENIORITY BLACKS WHO COULD OVERCOME THE SENIORITY HURDLES OFTEN STUMBLED WHEN FACED WITH THE COMPANY'S NEW TESTING REQUIREMENTS SAYS BILLY HAWKINS CHAIRMAN OF A UNION GRIEVANCE COMMITTEE AT USX'S PLANT IN GARY IND SUDDENLY BLACKS WITH 25 YEARS' SENIORITY WERE BEING REJECTED FOR JOBS BECAUSE THEY COULDN'T READ RULERS EVEN THOUGH RULERS WEREN'T EVEN USED ON THE JOBS USX SAYS THE STIFFER TESTS ARE ALL JOB RELATED AND NEEDED SINCE THE STEEL INDUSTRY IS MORE TECHNOLOGYDRIVEN THAN BEFORE BLACKS COULD NO LONGER GET TRAINING TO QUALIFY FOR SKILLED JOBS EITHER AS USX ELIMINATED ITS CRAFTTRAINING PROGRAMS IN THE MID1980S BECAUSE OF THE AVAILABILITY OF UNEMPLOYED CRAFTSMEN AS A RESULT PARTS OF THE PLANT THAT WERE TRADITIONALLY BLACK HAVE STARTED TURNING WHITE MR HAWKINS SAYS IT'S REALLY IRONIC ADDS FRANK WEBSTER ANOTHER UNION REPRESENTATIVE BLACKS WERE CAUGHT BY THE VERY THING THAT WAS SUPPOSED TO PROTECT THEM WE'RE SEEING THE END RESULTS OF DISCRIMINATION WE'RE RIGHT BACK TO SQUARE ONE ASRA Q NOMANI AND GREGORY N RACZ CONTRIBUTED TO THIS ARTICLE MAJOR FEDERAL CONTRACTORS WHERE EMPLOYMENT FELL BY AT LEAST 500 JOBS BETWEEN 1990 AND 1991 THE INDEX CALCULATED BY DIVIDING BLACK PERCENTAGE OF 1990 WORK FORCE INTO BLACKS' SHARE OF THE OVERALL JOB LOSS SHOWS HOW MUCH BLACKS' SHARE OF JOB LOSSES VARIED FROM THEIR SHARE OF THE 1990 WORK FORCE MAJOR FEDERAL CONTRACTORS WHERE JOBS FELL BY AT LEAST 500 IN 199091 RANKED BY JOBLOSS INDEX THE HIGHER THE INDEX THE MORE BLACKS' SHARE OF JOB LOSSES EXCEEDED THEIR SHARE OF THE 1990 WORK FORCE MEXICO WHICH HAVE SMALL BLACK POPULATIONS TRIMMED CLERICAL AND SUPPORT STAFF IN STORES SAYS ITS NUMBERS ARE FAULTY EEOC HASN'T YET DECIDED WHETHER TO ACCEPT ITS REVISED SUBMISSION CONCENTRATIONS OF BLACKS AND CONSOLIDATED PRODUCTION AT ANOTHER PHILADELPHIA PLANT WITH ONE IN NEW JERSEY WERE AFFECTED BY THE RACIAL MIX OF COMPANIES SOLD INCLUDING A FASTFOOD BUSINESS REDUCED BLUE COLLAR WORK FORCE WHICH HAD HIGH PERCENTAGE OF BLACKS ST LOUIS AND WEST PALM BEACH FLA WHERE WORK FORCE WAS MORE THAN A THIRD BLACK WHICH HAD WORK FORCES THAT WERE MORE THAN 50 BLACK FULLTIME WORKERS SURPRISED BY DEMOGRAPHIC CHANGE BUT PROBABLY DUE TO OPENING MORE STORES IN SUBURBAN AREAS WAS 50 BLACK OF THE 671 BLACKS WHO LOST JOBS 600 WORKED IN SUMTER MOST NOW WORK FOR THE NEW OWNERS GOLDKIST INC YORK CITY TO DELAWARE WORKERS BECAUSE OF EASTERN AIRLINES BANKRUPTCY AND CLOSINGS OF RESTAURANTS AND AUTO PLANTS BOTH WORK FORCES HAD HIGH PERCENTAGE OF BLACKS SENIORITY RULES MANUFACTURING AND FIELD ORGANIZATIONS WHERE 91 OF BLACK WORKERS WERE CONCENTRATED FOR 70 OF THE BLACK LOSS HAS HIGH PERCENTAGE OF BLACKS WHICH WAS 39 BLACK AND CICERO ILL PLANT WHICH WAS 80 BLACK FRANCHISEES OF THESE 53 WERE SOLD TO BLACK FRANCHISEES ACCORDING TO UNION RULES NORTHEAST AND MIDWEST WHILE EXPANDING BUSINESSES IN MESA ARIZ AND LOS ANGELES WHERE THERE ARE SMALLER BLACK POPULATIONS OF BLACKS THE CORE COMPANY ACTUALLY INCREASED ITS PERCENTAGE OF BLACKS IN WORK FORCE EDWARD P FOLDESSY WALL STREET JOURNAL NEWS SYSTEM EDITOR OF COMPUTER TAPES OBTAINED FROM THE US GOVERNMENT SEE RELATED LETTERS LETTERS TO THE EDITOR BLACK JOB LOSS DATA WERE DISTORTED WSJ OCT 12 1993 9309140121 9310120103 YY93 MM10 YY93 MM11 9311230164 931123 WHO'S NEWS NORTHEAST FEDERAL CORP NORTHEAST FEDERAL CORP HARTFORD CONN KIRK W WALTERS 37YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS GIVEN THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER OF THIS THRIFT INSTITUTION HE SUCCEEDS GEORGE P RUTLAND 61 WHO REMAINS CHAIRMAN 9311230163 931123 WHO'S NEWS XTRA CORP XTRA CORP BOSTON WILLIAM H FRANZ 43YEAROLD EXECUTIVE VICE PRESIDENT OF THIS TRANSPORTATION EQUIPMENT LEASING COMPANY'S LEASE DIVISION WAS NAMED CORPORATE VICE PRESIDENT IN CHARGE OF THE DIVISION FILLING A VACANCY 9311230162 931123 INTERNATIONAL IN KUALA LUMPUR CONTRACTS AWARDED FOR TOWERS TOUTED AS WORLD'S TALLEST BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA CALL THE GUINNESS BOOK OF RECORDS MAYBE TWO INTERNATIONAL CONSORTIUMS WON CONTRACTS TO BUILD WHAT THEY CLAIM WILL BE THE TALLEST BUILDINGS IN THE WORLD 1476FOOT TWIN TOWERS FOR THE MAMMOTH KUALA LUMPUR CITY CENTER PROJECT THE DEVELOPERS SAY THE TOWERS WOULD EDGE OUT THE RECORD HOLDER THE 1454FOOT SEARS BUILDING IN CHICAGO HOWEVER THE 110STORY SEARS TOWER WOULD BE TALLER IN TERMS OF INHABITABLE SPACE COMPARED WITH 88 STORIES IN THE KUALA LUMPUR PROJECT THE ADDED HEIGHT WOULD COME FROM A HUGE STRUCTURALSTEEL DECORATIVE SPIRE WHICH PURISTS MIGHT LABEL AS CHEATING KUALA LUMPUR CITY CENTER BHD DEVELOPER OF THE PROJECT ON MONDAY SIGNED ONE AGREEMENT VALUED AT 5043 MILLION RINGGITS US1975 MILLION WITH A JAPANESEUS MALAYSIAN CONSORTIUM TO BUILD ONE TOWER CONSORTIUM MEMBERS ARE HAZAMA CORP AND MITSUBISHI CORP OF JAPAN JA JONES CONSTRUCTION CO OF THE US AND MMC ENGINEERING SERVICES SDN BHD AND HO HUP CONSTRUCTION CO OF MALAYSIA A SECOND AGREEMENT VALUED AT MORE THAN 510 MILLION RINGGITS WAS SIGNED WITH A KOREANMALAYSIAN CONSORTIUM TO BUILD THE SECOND TOWER AND A SKYBRIDGE THAT WOULD LINK THE TWO STRUCTURES AT MIDLEVEL GROUP MEMBERS ARE SAMSUNG ENGINEERING & CONSTRUCTION CO AND KUK DONG ENGINEERING & CONSTRUCTION CO OF SOUTH KOREA AND A LITTLEKNOWN MALAYSIAN CONCERN SYARIKAT JASATERA SDN BHD THE PRICES INCLUDE A 140 MILLIONRINGGIT CONTRACT WITH PERNAS OTIS ELEVATOR CO THE MALAYSIAN AFFILIATE OF OTIS ELEVATOR CO OF THE US A UNIT OF UNITED TECHNOLOGIES CORP TO SUPPLY 96 ELEVATORS AND ESCALATORS SAID BY THE VENDORS TO BE THE LARGEST ELEVATOR SALE EVER THE SEARS TOWER HAS HELD ITS RECORD SINCE 1974 AMBITIOUS PLANS TO DISPLACE IT OFTEN SURFACE ALTHOUGH MANY NEVER GET BEYOND THE BLUEPRINTS AMONG CONTENDERS IS A 140STORY TOWER PLANNED FOR THE CHINESE CITY OF CANTON MALAYSIAN BUSINESSMAN T ANANDA KRISHNAN SPENT 2 1/2 YEARS PLANNING THE ESTIMATED FIVE BILLIONRINGGIT KUALA LUMPUR PROJECT BEFORE UNVEILING THE IDEA IN SEPTEMBER 1992 WITH STRONG GOVERNMENT SUPPORT THE COMPLEX IS TO BE ON 95 ACRES ALONG THE EASTERN EDGE OF KUALA LUMPUR'S GOLDEN TRIANGLE COMMERCIAL DISTRICT IT IS EXPECTED TO BECOME THE NEW COMMERCIAL CENTER AND TO SET THE BENCHMARK LEASING RATE IN THE CAPITAL BY THE TIME THE INITIAL PHASE IS COMPLETED IN LATE 1996 MANY WHO LIVE OR WORK IN KUALA LUMPUR ARE CONCERNED ABOUT THE CONGESTION THE PROJECT COULD CREATE THE CITY IS CHOKED BY TRAFFIC AT RUSH HOUR MANY PEOPLE FEAR DAYLONG JAMS AFTER COMPLETION OF THE COMPLEX'S FIRST PHASE WHICH INCLUDES THE TWIN TOWERS TWO OTHER OFFICE TOWERS A SIXSTORY SHOPPING CENTER A PARK AND A CONVENTION HOTEL THE KUALA LUMPUR CITY GOVERNMENT HAS PLEDGED TO PROVIDE SUFFICIENT INFRASTRUCTURE INCLUDING EXPANDED ROADS TO COPE WITH THE INCREASED TRAFFIC BY THE TIME THAT PHASE IS FINISHED BUT THE PROJECT'S FINANCIAL BACKERS WORRY THAT CITY HALL'S EFFORTS ARE LAGGING BEHIND THE COMPLEX'S RAPID PROGRESS EIGHTYFIVE OF THE TWIN TOWERS' 88 FLOORS WITH 12 MILLION SQUARE FEET OF FLOOR SPACE ARE TO BE AVAILABLE FOR LEASING FIVE STORIES OF PARKING DECKS WITH SPACE FOR 7000 VEHICLES ARE TO BE BUILT UNDER THE TOWERS PETROLIAM NASIONAL BHD OR PETRONAS MALAYSIA'S NATIONAL OIL AND GAS COMPANY HOLDS 51 OF KUALA LUMPUR CITY CENTER BHD ANOTHER 48 IS HELD JOINTLY BY TWO PRIVATE CONCERNS CONTROLLED BY MR ANANDA MAI HOLDINGS SDN BHD AND PACIFIC STATES INVESTMENT LTD THE BALANCE IS HELD BY THE SELANGOR TURF CLUB WHICH FORMERLY OWNED MOST OF THE SITE 9311230161 931123 WHO'S NEWS TALBOTS INC TALBOTS INC HINGHAM MASS ELIZABETH KENNAN 55YEAROLD PRESIDENT OF MOUNT HOLYOKE COLLEGE WAS ELECTED A DIRECTOR OF THIS WOMEN'S CLOTHING RETAILER RAISING THE BOARD TO NINE MEMBERS 9311230160 931123 WHO'S NEWS HILLS STORES CO HILLS STORES CO CANTON MASS SUSAN E ENGEL FORMER PRESIDENT OF CHAMPION PRODUCTS INC AND JAMES L MOODY JR CHAIRMAN OF HANNAFORD BROTHERS CO WERE ELECTED DIRECTORS OF THIS DISCOUNT DEPARTMENTSTORE CHAIN FILLING VACANCIES ON THE BOARD 9311230159 931123 WHO'S NEWS RETAIL OPTIONS INC RETAIL OPTIONS INC NEW YORK JOHN W BURDEN 56 YEARS OLD FORMER CHAIRMAN OF FEDERATED DEPARTMENT STORES INC AND ALLIED DEPARTMENT STORES INC JOINED KENNETH H WALKER AND VERNA K GIBSON AS A PARTNER OF THE COMPANY MELVIN JACOBS A FOUNDING PARTNER OF THE COMPANY AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OF SAKS FIFTH AVE DIED IN OCTOBER THE RETAILING VETERANS PROVIDE GUIDANCE AND ADVICE ON MARKETING GROWTH AND ACQUISITION STRATEGIES 9311230158 931123 WHO'S NEWS GENESEE CORP GENESEE CORP ROCHESTER NY JOHN L WEHLE JR PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS HOLDING COMPANY WITH INTERESTS IN BEER AND ALE DEHYDRATED FOOD PRODUCTS REALESTATE INVESTMENT AND EQUIPMENT LEASING MR WEHLE 47 YEARS OLD SUCCEEDS HIS FATHER JOHN L WEHLE WHO DIED NOV 7 AT AGE 76 9311230157 931123 DIVIDEND NEWS COMMERCIAL METALS CO COMMERCIAL METALS CO DALLAS DECLARED A 4FOR3 STOCK SPLIT IN THE FORM OF A 33 1/3 STOCK DIVIDEND PAYABLE DEC 27 TO STOCK OF RECORD DEC 6 THE METAL PROCESSOR AND INDUSTRIAL MANUFACTURER ALSO SAID IT PLANS TO RAISE ITS QUARTERLY CASH DIVIDEND TO 12 CENTS ON EACH POSTSPLIT SHARE REPRESENTING A 23 INCREASE FROM THE PREVIOUS 13 CENTS ON EACH PRESPLIT SHARE 9311230156 931123 ENTERPRISE MULTIMEDIA DAVIDS ARE JITTERY ABOUT FACING GOLIATHS SOFTWARE FIRMS WHILE HIGHLY SUCCESSFUL KEEP A WARY EYE ON THE GIANTS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL IS THERE LIFE AFTER MICROSOFT SMALL COMPANIES CREATING MULTIMEDIA SOFTWARE ARE ENJOYING ONE OF THE MOST BUOYANT MARKETS IN SMALL BUSINESS SOME ARE EMERGING AS FASTTRACK SUCCESS STORIES AND ARE CONSIDERED LIKELY CANDIDATES FOR PUBLIC STOCK OFFERINGS THESE COMPANIES ARE GROWING SO FAST THEY WORRY HOW THEY WILL FARE WHEN BIG CORPORATIONS START HORNING IN ON THEIR LUCRATIVE TURF SOFTWARE GIANT MICROSOFT CORP HAS ALREADY ANNOUNCED EXPANSION PLANS SMALL COMPANIES RECOGNIZED YEARS AGO THAT MULTIMEDIA THE BUZZWORD FOR COMPUTER AND TELEVISION SOFTWARE APPLICATIONS COMBINING SOUND TEXT AND VIDEO WOULD BECOME POPULAR WITH CONSUMERS AND THEIR ABILITY TO FIND INNOVATIVE USES FOR COMPACT DISCS THE SHINY SOFTWARE CAPABLE OF STORING THOSE APPLICATIONS HAVE ALLOWED THEM TO DOMINATE A BURGEONING FIELD YOU HAVE A LOT OF FINE SMALL COMPANIES THAT HAVE BUILT THEIR BUSINESS AROUND PUBLISHING CDROM READONLY MEMORY SOFTWARE AND COULD GO PUBLIC IN A FEW YEARS SAYS JULIE SCHWERIN PRESIDENT OF INFOTECH A WOODSTOCK VT FIRM THAT TRACKS THE CD SOFTWARE MARKET BIG COMPANIES HAVE JUST BEEN WATCHING THIS HAPPEN AND HAVEN'T ALLOCATED THE RESOURCES THAT WOULD REALLY OPEN THE FLOODGATES THAT'S GIVEN SMALL COMPANIES A CHANCE TO GROW FOR INSTANCE DELORME MAPPING OF FREEPORT MAINE PUBLISHES STREET ATLAS USA A BESTSELLING CD THAT PROVIDES DETAILED ROAD MAPS THE COMPANY WHICH REPORTED 1992 REVENUE OF 12 MILLION SAYS ITS CD SALES HAVE TRIPLED THIS YEAR COMPACT PUBLISHING INC A WASHINGTON DC CONCERN THAT PUBLISHES NEWS AND CURRENT EVENTS ON CD SAYS REVENUE FOR 1993 WILL RISE TO ABOUT 2 MILLION FROM 850000 LAST YEAR SOON SUCH CONCERNS WILL HAVE POWERFUL COMPANY MICROSOFT SAYS THAT BECAUSE A LARGE PROPORTION OF ALL SOFTWARE WILL SOON BE WRITTEN ON CDS IT IS PLANNING A MAJOR MOVE INTO CD PUBLISHING OTHER BIG COMPANIES ARE EXPECTED TO FOLLOW LIKE MANY OTHER COMPANIES FACING BIGCORPORATION INTEREST IN THEIR FIELDS THE SMALL CONCERNS HOPE THERE WILL STILL BE ROOM FOR THE LITTLE GUY WHO CAN BUILD A BETTER MOUSETRAP NOBODY KNOWS WHO'S SMART IN THIS BUSINESS YET IT'S LIKE THE MOVIE INDUSTRY ONE YEAR BEFORE THE GREAT TRAIN ROBBERY' SAYS PETER BLACK OWNER OF XIPHIAS CORP A LOS ANGELES MAKER OF CD SOFTWARE THAT INCLUDES A COOKBOOK AND AN INTERACTIVE THRILLER IT'S STILL OPEN SEASON FOR SOMEBODY TO COME OUT WITH SOMETHING BRILLIANT AND I'LL PLACE MY BETS ON IT COMING OUT OF A GARAGE SOMEWHERE SOME THINK SOARING CONSUMER INTEREST IN CD SOFTWARE CREATES ROOM FOR BIG AND SMALL COMPANIES ALIKE ACCORDING TO INFOTECH NORTH AMERICAN SALES OF CD SOFTWARE REACHED 26 BILLION LAST YEAR UP FROM 304 MILLION IN 1988 AND THE NUMBER OF CD READERS INSTALLED ON PERSONAL COMPUTERS AND TELEVISION SETS CLIMBED TO 27 MILLION IN 1992 UP FROM 140000 IN 1988 SO FAR THE CD PUBLISHERS EXPLOITING THIS BOOM HAVE BEEN ALMOST ENTIRELY SMALL FOR INSTANCE CREATIVE MULTIMEDIA CORP A PORTAND ORE SOFTWARE MAKER BEGAN OFFERING PROFESSIONAL MEDICAL JOURNALS ON CD IN 1987 THE COMPANY SAYS THAT WHEN IT ALMOST COLLAPSED THREE YEARS LATER IT SWITCHED ITS STRATEGY TO DEVELOPING CONSUMER TITLES IT NOW OFFERS THE COMPLETE WORKS OF SHAKESPEARE AN AUDUBON GUIDE FOR BIRD LOVERS A FAMILY MEDICAL REFERENCE A PARENTING GUIDE AND INTERACTIVE MYSTERY AND SCIENCEFICTION TITLES SINCE REFOCUSING CREATIVE SAYS ITS REVENUE HAS GROWN TO 23 MILLION IN 1992 FROM A FEW HUNDRED THOUSAND DOLLARS IN 1990 IT SAYS IT EXPECTS REVENUE OF SEVERAL MILLION FOR 1993 BUT THE COMPANY WARNS THAT GETTING STARTED IN MULTIMEDIA STILL POSES SEVERE CHALLENGES ESPECIALLY SINCE THE COST OF DEVELOPING A FULLY ANIMATED AUDIOBASED CD TITLE HAS LEAPT TO 100000 TO 1 MILLION TODAY FROM ABOUT 25000 SEVERAL YEARS AGO IN FACING THE PROSPECT OF BIG COMPETITORS SMALL COMPANIES ALSO WORRY THAT THEY WILL BE AT A DISADVANTAGE IN MARKETING AND DISTRIBUTION IT'S ALWAYS POSSIBLE WITH ANY SOFTWARE PRODUCT THAT TWO GUYS IN A GARAGE CAN COME UP WITH A HIT SAYS JOHN CALHOUN CREATIVE'S CHAIRMAN BUT THE DIFFICULTIES OF SELLING AND MARKETING THE PRODUCT AREN'T TRIVIAL KAMAL ALMANSOUR A LOS ANGELES ENTREPRENEUR KNOWS HOW DIFFICULT DISTRIBUTION CAN BE HIS FOURYEAROLD COMPANY AFROLINK SOFTWARE MAKES EDUCATIONAL AND BUSINESS CDS AIMED AT THE AFRICANAMERICAN COMMUNITY ALTHOUGH HE SAYS REVENUE GREW TO ABOUT 250000 LAST YEAR FROM 50000 IN 1989 HE RELIES ON WORDOFMOUTH TO GENERATE SALES BECAUSE COURTING RETAILERS IS TOO EXPENSIVE AND DIFFICULT WHILE RETAIL CHAINS SUCH AS SOFTWARE ETC STORES INC OF MINNEAPOLIS SAY THEY ARE DEVOTING MORE SHELF SPACE TO CD SOFTWARE MANY SMALL CD COMPANIES SAY DISTRIBUTION OUTLETS CATERING TO AVERAGE CONSUMERS RATHER THAN COMPUTER BUFFS WILL BE NECESSARY FOR THE INDUSTRY TO GROW THE MULTIMEDIA PUBLISHERS GROUP BASED IN GREAT NECK NY IS A COALITION OF SIX SMALL CD SOFTWARE COMPANIES THAT HAVE LINKED UP TO GAIN GREATER LEVERAGE WITH DISTRIBUTORS COMPACT PUBLISHING A MEMBER SAYS THE GROUP HAS BEEN ABLE TO BUNCH ITS MEMBERS' TITLES TOGETHER TO CONVINCE RETAILERS THAT IT CAN PROVIDE A PRODUCT LINE SUFFICIENTLY DIVERSE AND INTERESTING TO ATTRACT A WIDE VARIETY OF CUSTOMERS BUT MANY OWNERS THINK THE BEST STRATEGY FOR SMALL MULTIMEDIA COMPANIES IS TO AVOID THE DISTRIBUTION NIGHTMARE ALTOGETHER INSTEAD THEY SAY SMALL COMPANIES SHOULD SIMPLY DEVELOP INNOVATIVE PRODUCTS FOR LARGE COMPANIES AND THEN LET THEIR WELLHEELED PARTNERS HANDLE DISTRIBUTION AND MARKETING ROGER ARCE PRESIDENT OF IMAGE BUILDER SOFTWARE INC OF TIGARD ORE HAS DONE JUST THAT HIS COMPANY HAS 60 EMPLOYEES BUT NO MARKETING OR DISTRIBUTION DEPARTMENTS INSTEAD IMAGE BUILDER DESIGNS CUSTOM PRODUCTS IN PARTNERSHIPS WITH SUCH LARGE MULTIMEDIA COMPANIES AS BRODERBUND SOFTWARE INC MR ARCE SAYS THIS PERMITS HIM TO LOWER HIS RISKS DIVERSIFY HIS PRODUCT LINE AND RESPOND MORE RAPIDLY TO CHANGES IN THE MARKET BUT EVEN THIS STRATEGY HE NOTES MAY NOT GUARANTEE LONGEVITY ONE OF THE PROBLEMS I SEE FOR EVERYBODY IS MICROSOFT THEY'RE VERY PREDATORY SAYS MR ARCE PEOPLE IN THE INDUSTRY ARE DEATHLY AFRAID THAT MICROSOFT HAS THE MONEY AND EXPERTISE TO BE OUT IN FRONT OF EVERYONE NOT TO WORRY SAYS MICROSOFT I DON'T THINK WE COULD SQUEEZE PEOPLE OUT IF WE WANTED TO SAYS TOM CORDDRY GENERAL MANAGER OF MICROSOFT'S MULTIMEDIA PUBLISHING UNIT IN A BUSINESS IN WHICH THERE WILL BE TENS OF MILLIONS OF TITLES EACH YEAR THERE SIMPLY WON'T BE THE POSSIBILITY OF ACHIEVING THE KIND OF POSITION WE HAVE IN WORD PROCESSING 9311230155 931123 BASF TO GET A REWARD FOR ENERGY EFFICIENCY WESTBOROUGH MASS IN A SIGN OF THE ENERGYEFFICIENT TIMES AN ELECTRIC COMPANY WILL HAND A CUSTOMER A 12 MILLION CHECK FOR ITS WORK TO SAVE ELECTRICITY NEW ENGLAND ELECTRIC SYSTEM SAID ITS MASSACHUSETTS ELECTRIC CO UNIT WILL PAY BASF CORP A UNIT OF GERMANY'S BASF AG CHEMICAL CONCERN THE MONEY TODAY AT ITS RENOVATED BIOTECHNOLOGY CENTER IN WORCESTER MASS UNDER MASSSACHUSETTS ELECTRIC'S DESIGN 2000 IT PAYS CUSTOMERS THAT ARE BUILDING NEW FACILITIES OR RENOVATING OLDER ONES PART OF THE DIFFERENCE IN COST BETWEEN INSTALLING STANDARD EQUIPMENT AND UPGRADING TO MORE ENERGYEFFICIENT EQUIPMENT THE UTILITY SAID THAT BASF INCLUDED ENERGYEFFICIENT LIGHTING AND HEATING ROOMOCCUPANCY SENSORS AND A COMPUTERIZED ENERGYMANAGEMENT SYSTEM AMONG OTHER FEATURES MASSACHUSETTS ELECTRIC SAID ITS ENERGYCONSERVATION PROGRAMS AMOUNT TO 100 MILLION A YEAR IT SAID THE PAYMENT TO BASF WILL BE THE LARGEST IT HAS MADE TO ANY SINGLE CUSTOMER 9311230154 931123 MCDONALD'S RAISES SIGHTS FOR EXPANDING ITS OUTLETS OAK BROOK ILL MCDONALD'S CORP SIGNIFICANTLY RAISING ITS EXPANSION SIGHTS SAID IT MAY OPEN AS MANY AS 1200 RESTAURANTS IN EACH OF THE NEXT SEVERAL YEARS ONLY LAST MONTH THE WORLD'S LARGEST FASTFOOD CHAIN SAID IT PLANNED TO ADD UP TO 900 OUTLETS THIS YEAR AND INDICATED THAT NUMBER WAS LIKELY AGAIN IN 1994 WITH ABOUT TWO NEW RESTAURANTS OPENING OVERSEAS FOR EVERY ONE IN THE US IN 1992 THE COMPANY ADDED 675 STORES THROUGH THE FIRST NINE MONTHS OF THIS YEAR IT HAD OPENED 576 UNITS THERE ARE NEARLY 14000 MCDONALD'S RESTAURANTS IN 68 COUNTRIES WITH ABOUT 1000 IN JAPAN ALONE A COMPANY SPOKESMAN DIDN'T SAY WHY MANAGEMENT IS STEPPING UP THE CHAIN'S EXPANSION RATE TO BETWEEN 900 AND 1200 ANNUALLY FROM THE PREVIOUSLY ANNOUNCED RANGE OF 700 TO 900 DOMESTICALLY MCDONALD'S UNITS INCREASINGLY ARE GOING INTO SMALLER TOWNS AND INSTITUTIONS SUCH AS HOSPITALS SCHOOLS AND OTHER UNCONVENTIONAL SITES MCDONALD'S HAS ABOUT 70 LIMITEDMENU OUTLETS IN WALMART STORES IN WHAT IT DESCRIBES AS A TEST MANY OF THE COMPANY'S NEWEST STORES USE A SMALLER FORMAT TO SAVE ON CONSTRUCTION COSTS 9311230153 931123 FEDERAL BUDGET DEFICIT NARROWED IN OCTOBER WASHINGTON THE FEDERAL GOVERNMENT'S BUDGET DEFICIT NARROWED TO 4534 BILLION IN OCTOBER FROM 4879 BILLION A YEAR EARLIER THE TREASURY SAID LAST MONTH'S DEFICIT COMPARED WITH A SURPLUS OF 83 BILLION IN SEPTEMBER SINCE OCTOBER IS THE START OF THE FISCAL YEAR THE YEARTODATE DEFICIT IS THE SAME AS THE MONTHLY SHORTAGE 4534 BILLION THE TREASURY SAID RECEIPTS TOTALED 7867 BILLION LAST MONTH COMPARED WITH 7682 BILLION A YEAR EARLIER AND 12747 BILLION IN THE PREVIOUS MONTH OUTLAYS TOTALED 12401 BILLION LAST MONTH COMPARED WITH 12562 BILLION A YEAR EARLIER AND 11917 BILLION IN SEPTEMBER THE GOVERNMENT PAID 1764 BILLION IN INTEREST LAST MONTH ON THE FEDERAL DEBT OUTLAYS FOR THE RESOLUTION TRUST CORP TOTALED 7 MILLION LAST MONTH THE RTC GENERATED 18 MILLION IN RECEIPTS DURING SEPTEMBER 9311230152 931123 ECONOMY SEC SETS DISCLOSURE RULES ON PAY OF DEPARTING CEOS WASHINGTON COMPANIES THAT LOSE THEIR CHIEF EXECUTIVES BEFORE THE END OF THE FISCAL YEAR WILL HAVE TO DISCLOSE HOW MUCH THE CEOS WERE PAID INCLUDING THE VALUE OF ANY SEVERANCE PACKAGE ACCORDING TO NEW RULES ADOPTED BY THE SECURITIES AND EXCHANGE COMMISSION UNDER DISCLOSURE RULES ADOPTED LAST YEAR BY THE SEC A COMPANY IS REQUIRED TO TELL SHAREHOLDERS THE COMPENSATION LEVELS FOR THE CEO AND FOUR HIGHESTPAID EXECUTIVES AT YEAR END UNTIL YESTERDAY THE RULES DIDN'T ADDRESS THE PAY OF OFFICERS WHO LEFT BEFORE YEAR END WITH A 40 VOTE THE COMMISSION SAID COMPANIES SHOULD DISCLOSE THE PAY OF CEOS WHO LEAVE AND THE COMPENSATION OF UP TO TWO EXECUTIVES WHO LEAVE WHO WERE AMONG THE HIGHESTPAID OFFICERS THE SEC ALSO VOTED TO REQUIRE COMPANIES TO DISCLOSE ALL RESTRICTED STOCK HELD BY THE HIGHESTPAID EXECUTIVES AT YEAR END THE PREVIOUS RULE REQUIRED COMPANIES TO DISCLOSE ONLY RECENT GRANTS OF RESTRICTED STOCK IN ADDITION THE COMMISSION APPROVED A RULE REQUIRING COMPANIES TO PROVIDE MORE INFORMATION ABOUT THE WAY THEY DETERMINE THE VALUE OF STOCK OPTIONS GRANTED TO TOP EXECUTIVES 9311230151 931123 BUSINESS BRIEFS COMMUNICATIONS CORP ACQUIRED NELSON PUBLICATIONS FROM THE FOUNDER OF THE FINANCIALINFORMATION PUBLISHING COMPANY WALTER R NELSON THE COMPANIES DECLINED TO DISCLOSE TERMS OF THE TRANSACTION GOODYEAR TIRE & RUBBER CO HAS AGREED TO COOPERATE ON TWO RESEARCH PROJECTS WITH SANDIA NATIONAL LABORATORIES THE PROJECTS WILL USE COMPUTER MODELING TO PREDICT AND IMPROVE TIRE PERFORMANCE SANDIA PRIMARILY A NUCLEARWEAPONS RESEARCH LAB IS MANAGED BY MARTIN MARIETTA CORP FOR THE DEPARTMENT OF ENERGY GENERAL DYNAMICS CORP SIGNED A DEFINITIVE AGREEMENT TO SELL ITS LIME AND BRICK OPERATIONS TO CALCITHERM NEDERLAND NV A BELGIAN CONGLOMERATE TERMS WEREN'T DISCLOSED BUT ANALYSTS ESTIMATED THE PRICE AT 40 MILLION J BAKER INC COMPLETED THE ACQUISITION OF A CONTROLLING STAKE IN CLOSELY HELD TISHKOFF ENTERPRISES INC COLUMBUS OHIO FOR CASH AND STOCK J BAKER EXCHANGED 68000 SHARES OF COMMON STOCK AND PAID 650000 IN CASH FOR ALL OF TISHKOFF'S PREFERRED STOCK AND 83 OF ITS COMMON IT EXPECTS TO ACQUIRE THE REMAINING STOCK IN A STOCK SWAP IN COMING WEEKS EVERGREEN MEDIA CORP AGREED TO SELL ITS TWO JACKSONVILLE FLA RADIO STATIONS TO CLOSELY HELD OMNIAMERICA COMMUNICATIONS INC FOR 196 MILLION HARSCO CORP'S NEGOTIATIONS TO ACQUIRE A MAJORITY STAKE IN INFLEX SA OF ARGENTINA HAVE REACHED AN IMPASSE BUT IT IS STILL IN TALKS WITH INFLEX TO FORM WHAT IT TERMED A LONGTERM COMMERCIAL AGREEMENT KIII COMMUNICATIONS CORP ACQUIRED NELSON PUBLICATIONS WHICH SELLS FINANCIAL MARKETING DATABASE SOFTWARE AND PUBLISHES DIRECTORIES AND PERIODICALS FOR INVESTMENT PROFESSIONALS THE ACQUIRING COMPANY WAS INCORRECTLY IDENTIFIED AS COMMUNICATIONS CORP IN AN ITEM IN YESTERDAY'S BUSINESS BRIEFS 9311230150 931123 UNITED TECHNOLOGIES' EXCHAIRMAN GRAY RETURNS TO BUSINESS FARMINGTON CONN FORMER UNITED TECHNOLOGIES CORP CHAIRMAN HARRY GRAY SAID HE'S GETTING BACK INTO MANUFACTURING WITH AN INVESTMENT IN A HIGHTECHNOLOGY METAL FILTERING EQUIPMENT BUSINESS MR GRAY 74 YEARS OLD SAID HIS COMPANY HARRY GRAY ASSOCIATES AND SHAWMUT NATIONAL VENTURES A UNIT OF SHAWMUT NATIONAL CORP WERE AMONG INVESTORS THAT PURCHASED MOTT METALLURGICAL CORP A 15 MILLION PRIVATELY HELD POROUS METALS COMPANY WITH ABOUT 100 EMPLOYEES TERMS WEREN'T DISCLOSED METAL FILTERS ARE KEY COMPONENTS IN MAKING SEMICONDUCTORS IN PROCESSING GASSES FOR HUMAN CONSUMPTION AND IN WATER PURIFICATION MR GRAY SAID I LIKE MANUFACTURING IT'S GREAT MR GRAY DECLARED I LIKE THESE SMALL SPECIALTY THINGS YOU CAN MAKE GOOD MONEY AND HAVE AN IMPACT AND IT'S EASIER TO DO THAN A BIG INSTITUTIONAL PROPOSITION AND HE ADDED I LIKE TO BE ACTIVE THE WAY YOU KEEP YOUR LIFE GOING IS TO KEEP YOUR MIND ACTIVE MR GRAY WILL BE CHIEF EXECUTIVE OF THE COMPANY ITS FOUNDER LAMBERT BUD MOTT WILL BE A SIGNIFICANT INVESTOR AND VICE CHAIRMAN 9311230149 931123 SAUDIS KEEP OPEC ALLIES IN DARK ABOUT STRATEGY VIENNA SAUDI ARABIA THE WORLD'S LARGEST OIL PRODUCER IS KEEPING EVEN ITS CLOSEST ALLIES IN OPEC AS WELL AS THE WORLD OIL MARKET ON TENTERHOOKS WITH OIL PRICES THREATENING TO DROP ANOTHER 1 A BARREL UNLESS THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CUTS OUTPUT THE KINGDOM UNCHARACTERISTICALLY HASN'T GIVEN A CLUE TO ITS STRATEGY THE OTHER OIL MINISTERS WHO ALREADY HAVE ARRIVED FOR THE OPEC MEETING SCHEDULED TO BEGIN LATE THIS AFTERNOON COULD DO LITTLE BUT WAIT THAT'S BECAUSE HISHAM NASSER THE SAUDI OIL MINISTER ISN'T DUE TO REACH VIENNA UNTIL EARLY THIS AFTERNOON NO ONE IS GOING TO CUT UNLESS THE SAUDIS DO SAID A SENIOR OPEC DELEGATE THE DELEGATE SAID SAUDI ARABIA HAD NOT PARTICIPATED IN THE RECENT CORRESPONDENCE BETWEEN OPEC MEMBERS AND THE ORGANIZATION'S HEADQUARTERS ON THE ISSUE OF REDUCING OPEC'S PRODUCTION FURTHER TO STOP THE FALL IN OIL PRICES THE DEBATE HAD BEEN SPARKED BY IRAN WHOSE OIL MINISTER GHOLAMREZA AGHAZADEH RECENTLY PROPOSED A CUT OF 3 TO 5 IN OPEC'S CURRENT PRODUCTION CEILING OF 245 MILLION BARRELS A DAY 9311230148 931123 INTERNATIONAL POLITICS LOGISTICS SLOW THE FORMATION OF GAZA POLICE FORCE CRUCIAL TO PEACE BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL GAZA CITY GAZA STRIP FOR MANY IN THE GAZA STRIP THE RECRUITING OFFICES OF THE NEW PALESTINIAN POLICE FORCE HAVE BEEN THE FIRST TANGIBLE SIGNS OF THE START OF PALESTINIAN SELFRULE BUT LESS THAN A MONTH BEFORE THE POLICE ARE SLATED TO TAKE OVER FROM WITHDRAWING ISRAELI FORCES COL ABRAHIM MUHANA THE POLICE CHIEF DESCRIBES HIMSELF AS THE DIRECTOR OF A POLICE FORCE WITHOUT POLICE MORE THAN 11000 APPLICATIONS HAVE FLOODED INTO PALESTINE LIBERATION ORGANIZATION HEADQUARTERS AND HAVE BEEN WINNOWED TO 3000 BUT SUCCESSFUL APPLICANTS HAVEN'T BEEN TOLD WHETHER THEY HAVE MADE THE CUT BY NOW TRAINERS DRAWN MAINLY FROM THE MILITARY WING OF THE PLO SHOULD HAVE BEEN TEACHING NEW RECRUITS BUT THEY HAVEN'T YET ARRIVED IN GAZA AND THE SITE WHERE THE PALESTINIANS WANT TO HOLD TRAINING EXERCISES REMAINS AN ISRAELI JAIL HOLDING THOUSANDS OF PALESTINIAN PRISONERS ISRAELIS AND PALESTINIANS AGREE THAT SECURITY AND THE PALESTINIANS' ABILITY TO CONTROL THE STREETS WILL BE ONE OF THE KEY FACTORS IN DETERMINING THE SUCCESS OF THE ISRAELIPLO ACCORD SIGNED SEPT 13 GRANTING PALESTINIAN SELFRULE IN GAZA AND THE WEST BANK CITY OF JERICHO THE POLICE WILL HAVE TO WREST CONTROL OF THE STREETS BACK FROM THE FATAH HAWKS YOUNG MEN WHO SUPPOSEDLY TAKE ORDERS FROM THE PLO BUT WHO MORE OFTEN SEEM TO APPLY THEIR OWN VERSION OF THE LAW THE RECENT KILLING OF AN ISRAELI SETTLER BY FIVE MEN WHO BELONG TO THE PLO'S MAINSTREAM EL FATAH FACTION HEADED BY YASSER ARAFAT SHOWS WHAT A FORMIDABLE TASK IT WILL BE TO KEEP CONTROL OF THE VARIOUS PALESTINIAN FACTIONS IN A SOCIETY THAT AFTER YEARS OF OCCUPATION AND THE PALESTINIAN INTIFADA LACKS LAW AND ORDER PALESTINIAN LEADERS ESTIMATE IT WILL TAKE AT LEAST SIX MONTHS TO BUILD A PROPERLY FUNCTIONING POLICE FORCE BUT ISRAELI FORCES ARE SUPPOSED TO START WITHDRAWING FROM GAZA AS EARLY AS NEXT MONTH PUBLICLY AT LEAST THE PALESTINIAN LEADERS ARE UNWILLING TO CONSIDER THE POSSIBILITY THAT REMOVING ISRAELI SOLDIERS FROM GAZA IS NOT GOING TO SOLVE ALL OF GAZA'S SOCIAL PROBLEMS THEY DISMISS REPORTS THAT THREE RECENT KILLINGS OF SENIOR FATAH LEADERS WERE THE RESULT OF A POWER STRUGGLE WITHIN THE FACTION SAYING THE ISRAELI MEDIA IS TRYING TO SCARE PALESTINIANS AND THAT ALL DISPUTES WILL BE RESOLVED USING PEACEFUL DEMOCRATIC MEANS THEY TOUT THEIR SUCCESS IN BROKERING THE SAFE RETURN OF A DOCTOR KIDNAPPED BY PALESTINIAN GUNMEN FROM A GAZA HOSPITAL BUT THE PALESTINIAN LEADERS CLAIM THEY HAVEN'T BEEN ABLE TO MAKE ANY PROGRESS IN UNCOVERING WHO KILLED ASSAD SAFTAWI THE MOST PROMINENT OF THE THREE MURDERED LEADERS AND A STRONG SUPPORTER OF THE PEACE ACCORD BECAUSE THE ISRAELIS WON'T GIVE THEM PERMISSION TO INVESTIGATE THE MATTER EVEN NOW YOU AMERICANS DON'T KNOW WHO KILLED PRESIDENT JOHN F KENNEDY SO HOW CAN WE FIND OUT WHO KILLED SAFTAWI WHILE WE ARE UNDER ISRAELI AUTHORITY SAYS SOBEH EL MASRI A MEMBER OF THE PLO'S INTERNATIONAL RELATIONS COMMITTEE IN GAZA THE DELICATE BALANCE THAT THE PALESTINIANS WILL HAVE TO MAINTAIN BETWEEN REVOLUTIONARY FERVOR AND ADMINISTRATIVE CONTROL IS BEST ILLUSTRATED BY THE CHOICE OF MR MUHANA AS POLICE CHIEF DRESSED IN A GRAY SUIT AND TIE AND SITTING STIFFLY IN HIS CHAIR MR MUHANA'S FASTIDIOUSNESS AND FORMAL MANNERS SET HIM APART FROM MOST OF THE MEN HE WILL BE COMMANDING FORMER STREET LEADERS IN THE FIGHT AGAINST THE ISRAELI OCCUPATION WHO TEND TO FAVOR DARK JEANS AND OPEN SHIRTS AND BANTER EASILY WITH EACH OTHER AS THEY CHAINSMOKE MR MUHANA BECAME A POLICEMAN AT THE AGE OF 17 WHEN THE EGYPTIANS CONTROLLED GAZA NEARLY THIRTY YEARS LATER HE HAD WORKED HIS WAY UP THE RANKS TO BECOME THE TOP COMMANDER IN GAZA UNTIL HE ALONG WITH OTHER PALESTINIANS SERVING IN THE ISRAELI POLICE FORCE WAS FORCED TO RESIGN HIS POST BY THE LEADERS OF THE INTIFADA WHEN HE IS ASKED TODAY ABOUT HIS POLITICAL AFFILIATION HE REPLIES GRAVELY A POLICEMAN SERVES HIS NATION AND HIS PEOPLE HE BELONGS TO NO PARTY IN CONTRAST ONE OF MR MUHANA'S KEY DEPUTIES MAHMOUD ABU ODEH READILY IDENTIFIES HIMSELF AND THE OTHER SEVEN MEMBERS OF THE COMMITTEE CHOOSING NEW RECRUITS FOR THE POLICE FORCE AS FATAH SUPPORTERS MR ABU ODEH SPENT 11 YEARS IN JAIL FOR HIS ROLE IN PLANNING AND CARRYING OUT ATTACKS AGAINST THE ISRAELI ARMY THE FOURPAGE APPLICATION FORM FOR POTENTIAL RECRUITS SEEMS TO REFLECT HIS CONCERNS MORE THAN THOSE OF MR MUHANA THE FORM INCLUDES STANDARD QUESTIONS SUCH AS THE APPLICANT'S BIRTH DATE AND LEVEL OF EDUCATION BUT THE FOCUS QUICKLY SHIFTS TO THE APPLICANT'S FAMILY CONNECTIONS AND POLITICAL BACKGROUND AMONG OTHER THINGS RECRUITS ARE ASKED TO LIST RELATIVES WHO BELONG TO THE MILITARY WING OF THE PLO HAVE WORKED IN PLO ORGANIZATIONS OR SERVED TIME IN JAIL WE ASK THEM WHO THEY KNOW BECAUSE WE WANT TO KNOW WHO THEY ARE SAYS MR ABU ODEH BUT THE MAIN CONSIDERATION IN SELECTING THEM IS THEIR LEVEL OF EDUCATION THEIR HEALTH AND THEIR AGE NONETHELESS IN THE STREETS OF GAZA DOUBTS PERSIST ABOUT THE FUTURE COMPOSITION OF THE PALESTINIAN POLICE FORCE LEAFLETS HAVE APPEARED ACCUSING THE SELECTION COMMITTEE OF REFUSING TO CONSIDER APPLICATIONS FROM PEOPLE WHO DON'T BELONG TO THE FATAH FACTION I AM WORRIED THAT THE SELECTION COMMITTEE IS TAKING INTO CONSIDERATION POLITICAL COLOR MORE THAN PERSONAL QUALIFICATIONS IT WILL BE VERY BAD IF THE POLICE IS NOT A NEUTRAL BODY SAYS YUNIS AL JAROUH A LAWYER IN GAZA CITY WHO IS A MEMBER OF A PLO FACTION THAT OPPOSES THE ACCORD SIGNED WITH ISRAEL MR AL JAROUH SAYS THAT DESPITE THE ACCORD MANY PALESTINIANS STILL CONSIDER ARMED STRUGGLE AGAINST THE ISRAELIS A LEGITIMATE AND LEGAL WAY TO REGAIN THEIR LAND AND THAT A PALESTINIAN POLICE FORCE TRYING TO STOP THEM WILL LOSE THE BACKING OF THE STREET I CAN'T IMAGINE THE POLICE TRYING TO STOP PEOPLE FROM ATTACKING ISRAELIS SAYS MR AL JAROUH HE FINDS THE PROSPECT OF PALESTINIAN AND ISRAELI POLICE OFFICERS WORKING TOGETHER TO APPREHEND A PALESTINIAN WHO KILLS AN ISRAELI EVEN MORE UNSETTLING IT WILL BE HARD FOR PALESTINIANS TO WATCH PALESTINIAN POLICE AND ISRAELI POLICE SEARCHING THE SAME PLACES TRYING TO CAPTURE THE SAME PEOPLE HE SAYS I THINK THAT ESTABLISHING THIS POLICE FORCE IS GOING TO CREATE SITUATIONS THAT WE AS PALESTINIANS NEVER IMAGINED WE WOULD EVER FACE 9311230147 931123 CANADIAN RETAIL SALES INCREASE OTTAWA CANADIAN RETAIL SALES ROSE 1 IN THE THIRD QUARTER FROM THE PREVIOUS THREE MONTHS MOSTLY BECAUSE OF HIGHER SALES IN JULY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE THIRDQUARTER RISE FOLLOWED RETAIL SALES INCREASES OF 08 IN THE SECOND QUARTER AND 18 IN THE FIRST QUARTER 9311230146 931123 POLITICS & POLICY ACCUSED LAWMAKERS GET AID FROM FAVOR SEEKERS AS FAT CATS RAISE BIG KITTIES IN THEIR DEFENSE BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COCKTAIL PARTY HELD AT A GEORGETOWN TOWNHOUSE EARLIER THIS MONTH LOOKED LIKE A TYPICAL WASHINGTON FUNDRAISING RECEPTION THE ROOM WAS FULL OF PROMINENT LAWYERS AND LOBBYISTS THE GUEST OF HONOR WAS A POWERFUL LAWMAKER THE GUESTS WROTE GENEROUS CHECKS BUT THE PURPOSE OF THIS TONEY GATHERING WAS MORE UNUSUAL TO RAISE MONEY TO PAY FOR THE PRICEY LAWYERS WHO ARE TRYING TO SAVE HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI FROM INDICTMENT IN THE HOUSE POST OFFICE SCANDAL THE ILLINOIS DEMOCRAT'S LEGAL DEFENSE FUND WHICH IS BEING FATTENED WITH DONATIONS FROM WASHINGTON INSIDERS WHO CONDUCT BUSINESS BEFORE THE POWERFUL CHAIRMAN'S COMMITTEE IS ONE OF THE NEWEST BUT HARDLY THE ONLY LEGAL KITTY ESTABLISHED TO AID LAWMAKERS IN ETHICAL DISTRESS SEN BOB PACKWOOD R ORE UNDER INVESTIGATION FOR SEXUAL HARASSMENT AND TIES TO A FOREIGN LOBBYIST HAS ONE AND HIS NEED FOR LEGAL FUNDS WILL CONTINUE TO GROW THE SENATE FILED PAPERS IN FEDERAL COURT YESTERDAY TO COMPEL HIM TO TURN OVER HIS DIARY AS PART OF ITS PROBE AND THE JUSTICE DEPARTMENT HAS BEGUN ITS OWN INQUIRY INTO SEN PACKWOOD SEN KAY BAILEY HUTCHISON R TEXAS SAID LAST WEEK THAT SHE IS LAUNCHING ONE TO FINANCE HER DEFENSE AGAINST ABUSEOFOFFICE CHARGES STEMMING FROM HER STINT AS TEXAS STATE TREASURER A NUMBER OF OTHER SENATORS UNDER INVESTIGATION OR FIGHTING OTHER LEGAL BATTLES HAVE SET UP THEIR OWN DEFENSE FUNDS SPECIAL FUNDS FOR LEGAL BILLS ARE A RELATIVELY NEW PIECE OF THE WASHINGTON MONEY MACHINE THEY CONSTITUTE A SIGNIFICANT FINANCIAL PERK THAT AFFORDS MEMBERS OF CONGRESS THE BEST LEGAL DEFENSE MONEY CAN BUY PAID FOR BY US CORPORATIONS WITH INTERESTS BEFORE THE LAWMAKERS IN A GRAY UNTESTED AREA OF THE LAW CONTRIBUTORS ARE GIVING THE MAXIMUM ALLOWED TO A MEMBER'S POLITICAL CAMPAIGN AND THEN GIVING AGAIN IN MUCH GREATER AMOUNTS TO PAY THE LEGAL BILLS FOR CONGRESSIONAL FRIENDS IN NEED IT'S ANOTHER WAY TO USE FINANCIAL RESOURCES TO CURRY FAVOR WITH MEMBERS OF CONGRESS SAYS JOSHUA GOLDSTEIN OF THE CENTER FOR RESPONSIVE POLITICS THIS IS JUST ANOTHER POCKET IN THE POLITICIANS' COATS IT'S NOT AS THOUGH LAWMAKERS ARE WITHOUT OTHER MEANS TO PAY LAWYERS WHEN THEY GET INTO HOT WATER THEY ALREADY MAY TAP THEIR CAMPAIGN TREASURIES FOR A WIDE RANGE OF PERSONAL USES INCLUDING LEGAL BILLS THE FEDERAL ELECTIONS COMMISSION HAS RULED BUT LOOSER RULES ALLOW LEGAL DEFENSE FUNDS TO FATTEN UP MORE QUICKLY THAN CAMPAIGN TREASURIES CORPORATE POLITICAL ACTION COMMITTEES FOR EXAMPLE MAY GIVE 10000 A YEAR TO LEGAL DEFENSE FUNDS DOUBLE THE AMOUNT THEY MAY GIVE POLITICAL CAMPAIGNS INDIVIDUALS LIMITED TO 1000 A CAMPAIGN MAY KICK IN 10000 TO A SENATE LEGAL DEFENSE FUND OR 5000 TO HELP DEFRAY A HOUSE MEMBER'S LEGAL BILLS CORPORATE DONORS ARE MORE THAN PLEASED TO BE REPEAT GIVERS TO INFLUENTIAL SENATORS SEN ALFONSE D'AMATO OF NEW YORK IS THE RANKING REPUBLICAN ON THE BANKING COMMITTEE WHICH HOLDS SWAY OVER WALL STREET WHEN THE SENATE ETHICS COMMITTEE LAUNCHED AN INVESTIGATION INTO HIS PERSONAL FINANCIAL DEALINGS WALL STREET FIRMS LEAPT EAGERLY TO HIS LEGAL AID OFFICIALS FROM BEAR STEARNS COS' BEAR STEARNS & CO UNIT FORSTMANN LITTLE & CO AND MORGAN STANLEY GROUP GAVE 10000 EACH A GOLDMAN SACHS & CO EXECUTIVE GAVE 5000 LEWIS RANIERI WHO HELPED LAUNCH THE MORTGAGE SECURITIES MARKET CONTRIBUTED 5000 FINANCIERS LEON BLACK AND SAUL STEINBERG EACH GAVE THE MAXIMUM 10000 ALL HAD PREVIOUSLY GIVEN GENEROUSLY TO THE SENATOR'S POLITICAL CAMPAIGN THOUGH SEN D'AMATO WAS ULTIMATELY CLEARED OF WRONGDOING HE RAISED AND SPENT 415208 FOR HIS LEGAL DEFENSE THE THIRDHIGHEST FOR ANY SENATOR SEN DAVID DURENBERGER R MINN WHO IS RETIRING NEXT YEAR RAISED 557697 MOSTLY IN SMALL CONTRIBUTIONS FROM MINNESOTA CONSTITUENTS HE FACES A FEDERAL FELONY CHARGE OF MAKING A FALSE STATEMENT FORMER SEN ALAN CRANSTON WHO DIDN'T RUN FOR REELECTION IN 1992 RAISED 446231 TO DEFEND HIMSELF AGAINST CHARGES OF INFLUENCE PEDDLING FOR SAVINGS AND LOAN EXECUTIVE CHARLES KEATING LATER CONVICTED OF FRAUD AND OTHER CRIMES THE IDEA OF THIS MUCH MONEY COMING FROM PEOPLE WITH LEGISLATION BEFORE THESE COMMITTEES IS JUST OUTRAGEOUS SAYS CHARLES LEWIS DIRECTOR OF THE CENTER FOR PUBLIC INTEGRITY WHO COMPLAINS OF THE STENCH CREATED BY THE FUNDS WHILE CAMPAIGN FUNDRAISERS TRY TO OUTDO ONE ANOTHER WITH LAVISH AFFAIRS AND FANCY INVITATIONS PLEAS FOR HELP WITH LEGAL BILLS ARE MORE LOWKEY AN INVITATION TO A FUNDRAISER FOR SEN PACKWOOD'S LEGAL DEFENSE FUND WAS MIMEOGRAPHED AND FOLDED FUNNY ACCOMPANIED BY A DRY LEGAL EXPLANATION OF THE FUND SAID ONE RECIPIENT INDEED PLEADING FOR MONEY TO DEFEND ONESELF FROM NASTY CHARGES IS A DELICATE TASK FOR INCUMBENTS MORE ACCUSTOMED TO TWISTING ARMS TO RAISE CASH FOR THE NEXT CAMPAIGN MOST OF THE LAWMAKERS RELY ON FORMER EMPLOYEES ENSCONCED AT LOCAL LAW FIRMS TO ACT AS DISCREET FUNDRAISERS THOMAS SNEERINGER FOR EXAMPLE A FORMER STAFFER OF REP ROSTENKOWSKI HELPED PUT TOGETHER THE GEORGETOWN FETE FOR THE WAYS AND MEANS CHAIRMAN MR SNEERINGER NOW WORKS FOR THE TAX AND ENTERTAINMENT LOBBYING FIRM LIZ ROBBINS ASSOCIATES THE ROBBINS CONCERN FAXED OUT THE INVITATIONS TO THE EVENT THIS WILL BE A RECEPTION TO HONOR THE CHAIRMAN AND TO LET HIM KNOW BY OUR PRESENCE AND BY OUR COMMITMENT TO HELP THAT WE SUPPORT HIM AND WILL DO WHAT WE CAN TO MAKE SURE HE HAS THE BEST POSSIBLE LEGAL REPRESENTATION IT READS UNTIL THIS NIGHTMARE IS BEHIND HIM NEITHER MR SNEERINGER NOR MS ROBBINS WHO OWNS THE LOBBYING FIRM WOULD COMMENT ON THE FUNDRAISER REP ROSTENKOWSKI HASN'T HAD TO REPORT YET TO THE HOUSE HOW MUCH HE HAS RAISED IN HIS LEGAL DEFENSE FUND OR DISCLOSE WHO HAS CONTRIBUTED INVITATIONS ARE LIKELY TO BE STEERED TO THOSE WHO ALREADY HAVE DEMONSTRATED LOYALTY BY GIVING LAWMAKERS KNOW WHO WILL BE WITH THEM IN THE WORST OF TIMES SAYS STEVEN F STOCKMEYER EXECUTIVE VICE PRESIDENT FOR THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES A TRADE GROUP FOR PACS HE CITES REP ROSTENKOWSKI HE'S EXTREMELY WELLLIKED BUT PEOPLE WITH NO BUSINESS BEFORE WAYS AND MEANS JUST WOULDN'T TOUCH THE LEGAL FUND WITH A 10FOOT POLE THAT PRINCIPLE IS AMPLY DEMONSTRATED IN THE LISTS OF CONTRIBUTORS TO OTHER LAWMAKERS' LEGAL FUNDS SEN TOM HARKIN D IOWA ONE OF LABOR'S BEST FRIENDS ON CAPITOL HILL LAUNCHED HIS LEGAL DEFENSE FUND AFTER AN AIDE TO A FORMER OPPONENT SUED HIM FOR LIBEL CONTRIBUTIONS POURED IN FROM UNIONS REPRESENTING POSTAL AUTO AND ELECTRICAL WORKERS MACHINISTS TRUCKERS AND MINERS DWAYNE ANDREAS HEAD OF AGRICULTURE CONCERN ARCHERDANIELSMIDLAND CO KICKED IN 10000 TO SEN HARKIN WHO SERVES ON THE AGRICULTURE COMMITTEE AS WELL AS THE LABOR COMMITTEE WITH BATTLES BREWING OVER THE COMMUNICATIONS INDUSTRY SEN HARKIN RECEIVED 10000 FROM THE PAC REPRESENTING AMERICAN TELEPHONE & TELEGRAPH CO AND 5000 FROM THE PAC FOR U S WEST INC SEN ORRIN HATCH OF UTAH IS RANKING REPUBLICAN ON THE PATENTS COPYRIGHTS AND TRADEMARKS PANEL OF THE JUDICIARY COMMITTEE CRUCIAL TO THE PHARMACEUTICAL INDUSTRY HE RECEIVED 5000 FROM EXECUTIVES AT PFIZER INC AND CONTRIBUTIONS FROM PACS REPRESENTING SWISSBASED SANDOZ LTD AS THE HEALTHCARE FIGHT PLAYS OUT ON CAPITOL HILL HEALTHCARE CONCERN NOVACARE INC IS ANOTHER DONOR SEN HATCH WAS BEING INVESTIGATED IN CONNECTION WITH THE FAILED BANK OF CREDIT & COMMERCE INTERNATIONAL BUT WAS CLEARED BY THE SENATE ETHICS COMMITTEE OF WRONGDOING OVER THE WEEKEND WHILE LEGISLATION TO OVERHAUL CAMPAIGN FINANCE IS PENDING BEFORE CONGRESS SO FAR NONE OF THE BILLS ADDRESSES LEGAL DEFENSE FUNDS MR LEWIS OF THE CENTER FOR PUBLIC INTEGRITY SAYS HE WOULD EVEN PREFER TO SEE PUBLIC MONEY PAY FOR A CONGRESSMAN'S LEGAL DEFENSE RATHER THAN CORPORATE CONSTITUENTS ANYTHING YOU COULD COME UP WITH IS BETTER THAN WHAT IS OUT THERE NOW HE SAYS BUT IT'S NOT AS THOUGH THE LAWMAKERS DON'T HAVE TO PAY ANYTHING TOWARD THEIR OWN DEFENSE RULES REQUIRE THEM TO CONTRIBUTE TO THEIR OWN FUNDS DULY NOTED AMONG THE LISTS OF DONORS ARE THE MINIMUM CONTRIBUTIONS FROM SOME OF THE LAWMAKERS 10 9311230145 931123 CORPORATE FOCUS ANY WAY YOU SLICE IT JOHNSON'S HORMEL ISN'T JUST SPAM CAUTIOUS PROCESSEDFOOD COMPANY'S NEW CHIEF MAY ADD TO MATURE LINES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN MINN THE LUNCHEON MENU AT THE COUNTRY CLUB HERE FEATURES THE FRISCO SPAMBURGER BUT JOEL W JOHNSON ORDERS THE PORK SANDWICH EITHER SELECTION SEEMS BEFITTING THE NEW MAN IN CHARGE AT HORMEL FOODS CORP WHICH HAS BEEN LIVING HIGH ON WHATEVER IT CAN MAKE FROM THE HOG FOR MORE THAN A CENTURY BUT THE CHOICES MR JOHNSON FACES AS HORMEL'S PRESIDENT AND RECENTLY ELECTED CHIEF EXECUTIVE OFFICER WON'T BE NEARLY AS EASY AS DECIDING ON LUNCH SHOULD THE COMPANY MAKE A BIG ACQUISITION TO BROADEN ITS SUPERMARKET PRESENCE AND GET SALES GROWING AGAIN IF SO IN WHAT AREA OR IS IT BETTER TO CONTINUE PLAYING IT SAFE SETTLING FOR SMALLER GAINS THROUGH LINE EXTENSIONS AND A FEW NICHE PRODUCTS THOSE ARE ONGOING QUESTIONS ON WALL STREET WHERE SOME ANALYSTS HAVE VIEWED HORMEL AS OVERLY CAUTIOUS AND WHO NOW HOPE THAT MR JOHNSON WON'T BE RELUCTANT TO BREAK OPEN THE COMPANY'S BULGING PIGGY BANK IF NECESSARY TO REDUCE HORMEL'S VULNERABILITY TO HOG AND POULTRY PRICE SWINGS THE CHALLENGE SAYS DAVID RABINOWITZ OF KIDDER PEABODY & CO IS THAT A LOT OF THE PRODUCT AREAS THEY COMPETE IN ARE MATURE SO THEY NEED TO GROW AT THE EXPENSE OF SOMEBODY ELSE OR COME UP WITH SOMETHING TOTALLY NEW WHICH IS JUST AS DIFFICULT FOR HIS PART MR JOHNSON A 50YEAROLD FOOD INDUSTRY VETERAN WHO SPENT NEARLY ALL HIS CAREER AT PHILIP MORRIS COS' GENERAL FOODS COMPLEX SAYS HE'S WILLING TO PILE DEBT ON HORMEL'S PLATE FOR THE RIGHT ACQUISITION WE'RE NOT GOING TO DO ANYTHING THAT JEOPARDIZES CONTROL OF THE COMPANY HE SAYS BUT WE COULD HANG MORE BRANDS ON THE ORGANIZATION WE HAVE IN PLACE IN THE PAST HORMEL TENDED TO TALK ABOUT A LOT OF THINGS BUT DO SMALL DEALS MR RABINOWITZ SAYS NOW SAYS LONGTIME DIRECTOR GERALDINE JOSEPH THERE'S GENUINE BOARD INTEREST IN SPENDING TO GROW STILL SHE ADDS THIS IS NOT A COMPANY THAT DOES WILDEYED THINGS A GLANCE AT ITS BALANCE SHEET ATTESTS TO THAT HORMEL FINISHED THE FISCAL YEAR ENDED OCT 30 WITH NEXT TO NOTHING IN DEBT MR JOHNSON SAYS THE COMPANY REPORTS YEAREND RESULTS TOMORROW A YEAR AGO IT HAD JUST 76 MILLION IN LONGTERM BORROWINGS AND A LUSTROUS 12 LEVERAGE RATIO ALTHOUGH IT HAS PASSED ON SEVERAL POTENTIAL ACQUISITIONS MARIE CALLENDER'S FROZEN PIES WAS AMONG THE LATEST MANAGEMENT LED BY CHAIRMAN AND FORMER CHIEF EXECUTIVE RICHARD L KNOWLTON HASN'T BEEN IDLE IN RECENT YEARS HORMEL HAS INTRODUCED A WIDE ARRAY OF ITEMS AS IT SOUGHT TO WEAN ITSELF FROM OVERRELIANCE ON PORK TODAY HORMEL IS THE NATION'S SECONDLARGEST PROCESSOR OF TURKEYS BEHIND CONAGRA INC AND SELLS ITEMS CONTAINING CHICKEN FISH AND BEEF PORK STILL REMAINS HORMEL'S PRIMARY RAW MATERIAL A LINKAGE THAT IN 1992 PULLED DOWN SALES AS HOG PRICES FELL HORMEL WAS FORCED TO CHARGE LESS FOR HAMS BACON AND SAUSAGE OR RISK LOSING MARKET SHARE AS THE NEW CHIEF EXECUTIVE MR JOHNSON HAS SOME POWERFUL BRANDS TO BUILD ON HORMEL CHILI IS THE NATION'S BESTSELLER AND ALSO WAS THE COMPANY'S BIGGESTVOLUME ITEM LAST YEAR DINTY MOORE BEEF STEW AND HORMEL PEPPERONI DOMINATE THE COMPETITION CHICHI'S SALSAS WHICH HORMEL DISTRIBUTES UNDER A LICENSING AGREEMENT WITH THE RESTAURANT CHAIN ARE TOP SELLERS IN MARKETS WHERE RESTAURANTS ARE LOCATED HORMEL HOLDS A 42 SHARE OF THE MICROWAVEABLE ENTREES BUSINESS IS BIG IN FROZEN SANDWICHES AND SLUGS IT OUT WITH SARA LEE CORP AND KRAFT GENERAL FOODS' OSCAR MAYER UNIT IN THE SAUSAGE HAM AND BACON MEAT CASE BEFORE COMING TO HORMEL IN 1991 MR JOHNSON WAS OSCAR MAYER'S EXECUTIVE VICE PRESIDENT HORMEL'S TRANSFORMATION FROM MEATPACKER TO PACKAGEDFOODS MAKER HAS BEEN MARKED BY INNOVATION IT PIONEERED SHELFSTABLE ENTREES ALTHOUGH CONSUMERS REMAIN LEERY OF MEALS THAT COME IN BOXES AND NEED NO REFRIGERATION MICROWAVEABLE BACON AND A 97 FATFREE LINE OF MEATS IN WHAT WOULD BE AN INDUSTRY BREAKTHROUGH HORMEL IS SEEKING TO CONVINCE CONSUMERS AND RETAILERS ALIKE OF THE MERITS OF BRANDED PORK CHOPS AND SIMILAR CUTS WRAPPED IN A GASFILLED FILM THAT KEEPS MEAT FRESH NEARLY TWO WEEKS THE PRODUCT WOULD FREE UP BACKROOM BUTCHERS FOR OTHER CHORES MR JOHNSON SAYS IT'S A TOUGH SELL BUT WE WILL GET THERE EVENTUALLY AND THEN THERE'S SPAM GOING ON 57 YEARS OLD THE SPICED HAM GREW AN IMPRESSIVE 5 IN VOLUME LAST YEAR BENEFITING FROM TV COMMERCIALS THAT TOUTED THE FAMED TINNED PRODUCT AS A WAY TO MAKE A GENUINE HAMBURGER VOILA THE SPAMBURGER MR JOHNSON IS LARGELY RESPONSIBLE FOR PEPPING IT UP SAYS MRS JOSEPH THE DIRECTOR SHE CREDITS HIM WITH PUSHING LOWSODIUM AND LIGHTLINE EXTENSIONS THAT HAVE HELPED BOOST SPAM'S SALES KIDDER ANALYST MR RABINOWITZ ESTIMATES THAT 20 OF HORMEL'S OPERATING PROFIT IN FISCAL 1992 CAME FROM SPAM CANNED CHILI AND BEEF STEW COMBINED ACCOUNTED FOR ANOTHER 20 HE SAYS OVERALL KIDDER CALCULATES THAT PREPARED FOODS ACCOUNTED FOR ABOUT 27 OF HORMEL'S 28 BILLION IN SALES BUT 64 OF ITS 151 MILLION IN PRETAX EARNINGS THE COMPANY DOESN'T DISCLOSE DIVISION SALES BUT SAYS ITS MEATPRODUCTS GROUP SIGNIFICANTLY IMPROVED OPERATING MARGINS IN FISCAL 1993 BOOSTING TONNAGE SHIPMENTS AND DOLLAR SALES ONE REASON ITS OLDLINE BRANDS STILL DO SO WELL HE THINKS IS BECAUSE THEY WERE NEVER USED TO BOOST REVENUE THROUGH HIGH PRICING THUS THERE WASN'T A SUFFICIENT PRICE GAP TO ATTRACT LOWERMARGIN COMPETITORS AS FOR PRIVATE LABEL COMPETITION BACON IS THE ONLY CATEGORY WHERE HOUSE BRANDS OUTSELL HORMEL HE CREDITS ADVERTISING WITH SPURRING MATUREBRAND GROWTH AND SAYS THIS YEAR'S AD BUDGET WILL BE UP ABOUT 8 IN FISCAL 1992 HORMEL SPENT 1445 MILLION ON ADVERTISING AND PROMOTION HE SAYS RESEARCHANDDEVELOPMENT SPENDING WILL BE 5 AHEAD OF LAST YEAR AND THE COMPANY'S BUDGET ANTICIPATES ANOTHER RECORD YEAR IN FISCAL 1993 HORMEL MADE SEVERAL MODEST ACQUISITIONS INCLUDING THE DUBUQUE MEATS TRADEMARK AND THE HERBOX INSTANT BROTH AND SEASONINGS BUSINESS THE RECENT PURCHASE OF A 18MILLIONHEAD HOG PROCESSING PLANT IN ROCHELLE ILL GAVE HORMEL NEEDED PRODUCTION CAPACITY WITH ROCHELLE IT CAN SLAUGHTER NINE MILLION HOGS ANNUALLY 10 OF THE NATION'S NEEDS WE'RE BIG ENOUGH TO COMPETE WITH ANYBODY BUT SMALL ENOUGH WE OUGHT TO BE QUICKER MR JOHNSON SAYS OF HORMEL ANALYSTS EXPECT THE NEW CHIEF TO BE SOMEWHAT MORE AGGRESSIVE THAN HIS PREDECESSOR PURSUING GROWTH OPPORTUNITIES IN THE US AND ABROAD WILLIAM LEACH A DONALDSON LUFKIN & JENRETTE ANALYST SUGGESTS THAT HORMEL MAY USE JOINT VENTURES TO EXPAND INTERNATIONALLY BUT THAT WOULD BE GRAVY HE SUGGESTS IT'S NOT LIKE THE COMPANY HAS ANY SERIOUS PROBLEMS THERE'S NO NEED FOR ANY RADICAL CHANGE FRESH PORK TURKEY BACON HOT DOGS HAM LUNCHEON MEATS PEPPERONI CANNED CHILI STEWS LUNCHEON MEAT MICROWAVEABLE ENTREES FROZEN SANDWICHES KRAFT GENERAL FOODS' OSCAR MAYER UNIT DIAL CORP AMERICAN HOME PRODUCTS CHEF BOYARDEE LINE CONAGRA TURKEY PRODUCTS PACE RJR AND PET SALSAS 9311230144 931123 BUSINESS BRIEF PLAZA HOME MORTGAGE CORP REVISION IN EARNINGS RESULTS IN LOSS FOR THIRD QUARTER PLAZA HOME MORTGAGE CORP SAID IT HAS REVISED ITS FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS TO REFLECT A 159 MILLION CHARGE STEMMING FROM INCREASED AMORTIZATION OF PURCHASED MORTGAGE SERVICING RIGHTS PLAZA'S REVISED THIRDQUARTER RESULTS SHOW A LOSS OF 49 MILLION OR 44 CENTS A SHARE COMPARED WITH NET INCOME OF 43 MILLION OR 38 CENTS A SHARE IN THE YEAREARLIER PERIOD FOR THE NINE MONTHS PLAZA OF SANTA ANA CALIF HAD PROFIT OF 13 MILLION OR 12 CENTS A SHARE COMPARED WITH NET INCOME OF 112 MILLION OR 101 A SHARE A YEAR AGO 9311230143 931123 WHO'S NEWS NEWS CORP NEWS CORP SYDNEY AUGUST FISCHER WAS NAMED CHIEF EXECUTIVE OF NEWS INTERNATIONAL PLC THE OPERATING COMPANY FOR UK OPERATIONS OF THIS MEDIA COMPANY OWNED BY RUPERT MURDOCH MR FISCHER IS NOW MANAGING DIRECTOR OF NEWS INTERNATIONAL THE COMPANY SAID THE MOVE GIVES MR FISCHER EXECUTIVE OVERSIGHT OF NEWS INTERNATIONAL AND ALLOWS ANDREW KNIGHT NEWS INTERNATIONAL'S CHAIRMAN TO CONCENTRATE ON CORPORATE INTERESTS OF THE COMPANY MR FISCHER REMAINS CHIEF OPERATING OFFICER OF NEWS CORP 9311230142 931123 RAWSTEEL OUTPUT FELL 55 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 55 LAST WEEK TO 1789000 TONS FROM 1893000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 311 FROM THE 1735000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 85 OF ITS CAPABILITY LAST WEEK COMPARED WITH 90 THE PREVIOUS WEEK AND 803 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9311230141 931123 AMOCO EXTENDS DEBT PURCHASE CHICAGO AMOCO CORP SAID IT WILL EXTEND UNTIL DEC 7 AN OFFER TO PURCHASE FOR CASH ALL OF ITS 975 SERIES DEBENTURES DUE MARCH 20 2016 THE PREVIOUS DEADLINE HAD BEEN TODAY THE COMPANY SAID IN OCTOBER THAT THERE WERE ABOUT 98 MILLION OF THE BONDS OUTSTANDING YESTERDAY IT SAID THAT AS OF NOV 19 ABOUT 195 MILLION OF THE TOTAL OUTSTANDING HAD BEEN TENDERED 9311230140 931123 SYMETRICS' AIR FORCE JOB BOOSTED MELBOURNE FLA SYMETRICS INDUSTRIES INC SAID IT HAS BEEN AWARDED AN ADDITIONAL 48 MILLION ON ITS IDM OR IMPROVED DATA MODEM CONTRACT WITH THE AIR FORCE THE COMPANY SAID THIS INCREASES ITS BACKLOG TO OVER 125 MILLION A RECORD AS PREVIOUSLY REPORTED SYMETRICS WAS AWARDED A 68 MILLION CONTRACT FROM THE AIR FORCE FOR THE IDMS IN MARCH SYMETRICS SAID THE AIR FORCE EXERCISED AN OPTION FOR 153 IDMS BRINGING THE TOTAL TO 341 9311230139 931123 INTERNATIONAL BASF PRETAX PROFIT FOR NINE MONTHS PLUMMETED 44 BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL LUDWIGSHAFEN GERMANY BASF AG WILL EMERGE STRONGER FROM THE RECESSION DESPITE ANOTHER PLUNGE IN PROFIT THIS YEAR AND A LEAN TIME AHEAD CHIEF EXECUTIVE OFFICER JUERGEN STRUBE SAID YESTERDAY THE GERMAN CHEMICAL COMPANY SAID PRETAX PROFIT FOR THE FIRST NINE MONTHS TUMBLED 44 TO 607 MILLION MARKS 3535 MILLION FROM 108 BILLION MARKS A YEAR EARLIER BASF'S EARNINGS HAVE FALLEN STEADILY IN THE 1990S REVENUE FOR THE LATEST PERIOD DECLINED 46 TO 326 BILLION MARKS FROM 342 BILLION MARKS AT A NEWS CONFERENCE MR STRUBE SAID FULLYEAR PRETAX PROFIT WON'T SHOW ANY SIGNIFICANT IMPROVEMENT FROM THE FIRST NINE MONTHS VOLUMES AND EARNINGS ARE BEGINNING TO STABILIZE AT A LOW LEVEL HE SAID THIS TREND CERTAINLY GIVES SOME CAUSE FOR HOPE WE HAVE PROBABLY REACHED THE BOTTOM OF THE SLOPE BUT IT IS PREMATURE TO CONCLUDE THAT WE HAVE STARTED UP THE OTHER SIDE EARNINGS WERE HURT BY LOW DEMAND AND WEAK PRICES AMID SURPLUS CAPACITIES AND INCREASING COMPETITION FROM PRODUCERS IN LOWWAGE COUNTRIES MR STRUBE MADE PARTICULAR REFERENCE TO DUMPING FROM EASTERN EUROPE DUMPING OCCURS WHEN A PRODUCT IS SOLD IN A FOREIGN MARKET AT A PRICE LOWER THAN IN THE DOMESTIC MARKET THE COMPANY SAID IT PLANS TO PAY A DIVIDEND THIS YEAR BUT ANALYSTS SAID THEY THINK THE PAYOUT WILL BE CUT ALASTAIR KILGOUR CHEMICALINDUSTRY ANALYST AT BNP SECURITIES LONDON FORECAST A 38 DROP IN FULLYEAR PRETAX PROFIT AND A PAYOUT OF EIGHT MARKS 466 A SHARE WHICH WOULD BE DOWN 20 FROM THE 10 MARKS PAID FOR 1992 BASF SHARES TUMBLED 24 OR 650 MARKS TO 26540 MARKS EACH ON THE RESULTS MATCHING THE OVERALL DROP IN THE FRANKFURT STOCK EXCHANGE YESTERDAY BASF SAID ITS STRATEGY IS TO REDUCE COSTS SUBSTANTIALLY AND INVEST HEAVILY TO IMPROVE EFFICIENCY WITH THE PRICE WAR RAGING UNABATED IN VIRTUALLY ALL OUR OPERATIONS THERE IS NO WAY WE CAN AVOID MAKING FURTHER IMPROVEMENTS TO OUR COST STRUCTURE MR STRUBE ADDED IN 1994 THE COMPANY PLANS TO CUT ABOUT 3000 JOBS AT THE GERMAN PARENT 9311230138 931123 UNIT OF BELL ATLANTIC GIVES VOICE MAILBOXES TO HOMELESS PEOPLE PHILADELPHIA BELL ATLANTIC MOBILE THE CELLULAR ARM OF BELL ATLANTIC CORP PLANS TO DONATE 200 VOICE MAILBOXES TO HOMELESS PEOPLE IN THE WASHINGTON DC AREA TO HELP THEM FIND JOBS AND APARTMENTS BELL ATLANTIC MOBILE WILL PROVIDE THE MAILBOXES THROUGH THE SALVATION ARMY CASE WORKERS WILL ASSIGN VOICE MAILBOXES TO THEIR HOMELESS CLIENTS WHO WILL BE ENCOURAGED TO USE THEM TO COMMUNICATE WITH PROSPECTIVE EMPLOYERS OR LANDLORDS THE 200 VOICE MAILBOXES WHICH WILL BE DISTRIBUTED AMONG RECIPIENTS IN THE DISTRICT MARYLAND AND VIRGINIA REPRESENT A 14000 VALUE THE NEW SERVICE IS AN EXPANSION OF BELL ATLANTIC MOBILE'S HOPELINE SERVICE WHICH WAS STARTED EARLIER THIS YEAR IN PROVIDENCE RI HOPELINE IS ALSO OFFERED IN BALTIMORE PHILADELPHIA PITTSBURGH GREENVILLE SC WILMINGTON DEL ATLANTIC CITY NJ AND PASSAIC NJ A COMPANY SPOKESMAN SAID BELL ATLANTIC MOBILE IS TALKING WITH OTHER REGIONAL BELLS ABOUT PROVIDING SIMILAR SERVICES 9311230137 931123 PEARSON PLC OFFERING LONDON PEARSON PLC SAID MONDAY THAT 55 OF ITS CAMCO INTERNATIONAL INC DIVISION IS TO BE SOLD IN A FLOTATION ON THE NEW YORK STOCK EXCHANGE AT 17 TO 19 A SHARE THE PUBLISHING CONGLOMERATE SAID THAT THE OFFERING COVERS 1375 MILLION SHARES IN CAMCO ITS OILFIELD EQUIPMENT AND SERVICES DIVISION AND THAT US AND INTERNATIONAL UNDERWRITERS TO THE ISSUE WILL RECEIVE OPTIONS TO RAISE THEIR STOCK ALLOCATIONS BY 15 IF EXERCISED THE OPTIONS COULD BOOST THE OFFERING TO 6325 OF CAMCO PEARSON SAID THE OFFER VALUES THE 55 STAKE IN CAMCO AT BETWEEN 234 MILLION AND 261 MILLION 9311230136 931123 US GRUMMAN REACH ACCORD IN PENTAGON CASE CRIMINAL CHARGES AVERTED IN SETTLEMENT REQUIRING SUPERVISION ON ETHICS BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL GRUMMAN CORP IN A MOVE TO AVERT CRIMINAL CHARGES OF DEFRAUDING THE NAVY HAS AGREED TO A PRECEDENTSETTING 20 MILLION CIVIL SETTLEMENT THAT GREATLY EXPANDS FEDERAL SUPERVISION OF THE COMPANY'S ETHICSCOMPLIANCE PROGRAMS THE AGREEMENT WHICH IS TO BE ANNOUNCED TODAY MANDATES THE MOST EXTENSIVE INVOLVEMENT YET BY FEDERAL AGENCIES IN A MAJOR DEFENSE CONTRACTOR'S INTERNAL COMPLIANCE EFFORTS IT ALSO IS EXPECTED TO ALLOW THE BETHPAGE NY CONTRACTOR TO AVOID BEING SUSPENDED OR BARRED FROM RECEIVING NEW FEDERAL CONTRACTS LAW ENFORCEMENT OFFICIALS SAID THAT THE SETTLEMENT WHICH GIVES JUSTICE DEPARTMENT AND PENTAGON OFFICIALS A DIRECT SAY IN SENSITIVE LEGAL AND PERSONNEL DECISIONS FACING GRUMMAN'S TOP MANAGEMENT IS LIKELY TO SERVE AS A MODEL FOR FUTURE AGREEMENTS WITH OTHER COMPANIES WHILE THE COMPANY WON'T ADMIT ANY WRONGDOING ONE FEDERAL OFFICIAL DESCRIBED THE ACCORD AS THE CLOSEST THING THE GOVERNMENT CAN DO TO PUTTING A CORPORATION ON PROBATION THE SETTLEMENT HAS BEEN EXPECTED FOR MONTHS BUT THE FARREACHING CIVIL REMEDIES WEREN'T DISCLOSED PREVIOUSLY BY EITHER SIDE A GRUMMAN SPOKESMAN DECLINED TO COMMENT JONNY FRANK THE LEAD PROSECUTOR IN THE CASE ALSO DECLINED TO COMMENT ON WHAT MAY BE INCLUDED IN THE AGREEMENT BUT MR FRANK HAS EMPHASIZED THAT THE GOVERNMENT'S PRIMARY GOAL IN ANY GRUMMAN SETTLEMENT IS TO LOOK AT THE UNDERLYING PROBLEMS BEHIND THE WRONGDOING AND TO MAKE SURE THOSE ARE CORRECTED IN SUCH A WAY THAT THEY CAN NEVER HAPPEN AGAIN THE SETTLEMENT AS EXPECTED ENDS A FIVEYEAR CRIMINAL INVESTIGATION OF THE COMPANY THAT WAS PART OF THE NATIONWIDE PENTAGON CORRUPTION INQUIRY DUBBED OPERATION ILL WIND FORMER GRUMMAN CHAIRMAN JOHN O'BRIEN PREVIOUSLY PLEADED GUILTY TO FELONY CHARGES STEMMING FROM ILL WIND AND INVESTIGATORS HAVE ALLEGED THAT PERSONAL AND CORPORATE CORRUPTION TAINTED HIS LEADERSHIP OF THE COMPANY SOME GRUMMAN EXECUTIVES FOR INSTANCE HAVE ACKNOWLEDGED THAT MANAGEMENT ACTUALLY GAVE THEM QUOTAS FOR SOLICITING ILLEGAL CAMPAIGN CONTRIBUTIONS FROM SUBCONTRACTORS THE INVESTIGATION ALSO UNCOVERED A PATTERN OF OVERCHARGES FRAUD AND OTHER VIOLATIONS INVOLVING SOME 17 MILLION IN BUSINESS GRUMMAN GAVE OVER THE YEARS TO ONE OF MR O'BRIEN'S CLOSEST FRIENDS AND FINANCIAL SUPPORTERS THE PAYMENT BY GRUMMAN WILL COVER THE ENTIRE 17 MILLION IN CONTRACTS THAT WERE INVESTIGATED THOUGH ONLY A PORTION OF THOSE CHARGES WERE IMPROPER AND ENDED UP BEING BILLED TO THE GOVERNMENT THE COMPANY HAS AGREED TO PAY AN ADDITIONAL 3 MILLION TO REIMBURSE THE GOVERNMENT FOR THE COST OF THE INVESTIGATION GRUMMAN HAS COOPERATED WITH THE INVESTIGATION THE COMPANY ALREADY HAS STRENGTHENED ITS ETHICS RULES AND IT HAS PUNISHED OR FORCED OUT A NUMBER OF EXECUTIVES IMPLICATED IN THE SUSPECT ACTIVITIES NEVERTHELESS THE SETTLEMENT WHICH WAS DRAFTED BY THE US ATTORNEY'S OFFICE IN BROOKLYN NY GOES MUCH FURTHER GRUMMAN'S BOARD FOR EXAMPLE WILL HAVE TO SUBMIT TO JUSTICE DEPARTMENT AND NAVY OFFICIALS DRAFTS OF CERTAIN INTERNAL INVESTIGATIVE REPORTS BEFORE MAKING FURTHER PERSONNEL OR PROCEDURAL CHANGES AS A RESULT OF THE ILL WIND PROBE GRUMMAN ALSO WILL BE OBLIGATED TO SEEK RECOMMENDATIONS FROM THESE FEDERAL OFFICIALS AND THE COMPANY ALSO FOR THE FIRST TIME WILL BE REQUIRED TO TURN OVER TO THE GOVERNMENT QUICKLY ANY CREDIBLE ALLEGATIONS OF CRIMINAL BEHAVIOR IT RECEIVES FROM WHISTLEBLOWERS OR THE COMPANY'S OWN AUDITING STAFF PREVIOUS HIGHPROFILE SETTLEMENTS OF FEDERAL OVERCHARGE CLAIMS BY LARGE CONTRACTORS INCLUDING THOSE SIGNED IN THE PAST FEW YEARS BY UNISYS CORP AND SUNDSTRAND CORP THAT AMOUNTED TO MORE THAN 380 MILLION IN PAYMENTS TO THE GOVERNMENT MANDATED BEEFEDUP CORPORATE ETHICS PROGRAMS IN SOME EARLIER CASES OFFENDING COMPANIES ALSO AGREED TO MAKE PERIODIC PROGRESS REPORTS ON ETHICSCOMPLIANCE MATTERS TO THE GOVERNMENT IN THE GRUMMAN CASE HOWEVER TOP EXECUTIVES HAVE GIVEN FEDERAL WATCHDOGS UNPARALLELED ACCESS TO SOME OF THE COMPANY'S MOST CLOSELY HELD DELIBERATIONS 9311230135 931123 WHO'S NEWS JAY JACOBS INC JAY JACOBS INC SEATTLE CRAIG BOHMAN 45 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS APPAREL RETAILER HE SUCCEEDS DOUGLAS SWERLAND WHO RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER THE CEO POST HAD BEEN HELD BY JAY JACOBS WHO REMAINS CHAIRMAN MR BOHMAN WILL RETAIN THE DUTIES OF HIS FORMER POST CHIEF FINANCIAL OFFICER THE COMPANY SAID THE POST OF CHIEF OPERATING OFFICER WILL REMAIN UNFILLED 9311230134 931123 BUSINESS BRIEF FIRST CHICAGO SIGNS DEFINITIVE ACCORD TO BUY LAKE SHORE BANCORP FOR STOCK CHICAGO FIRST CHICAGO CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE LAKE SHORE BANCORP INC FOR ABOUT 323 MILLION IN STOCK SIGNALING FIRST CHICAGO'S CONTINUING STRATEGY TO GROW THROUGH ACQUISITIONS LAKE SHORE HAS 12 BILLION IN ASSETS AND SERVES MIDDLEMARKET SMALL BUSINESS AND RETAIL CUSTOMERS LAKE SHORE MAY BE FAIRLY SMALL IN TERMS OF ASSET SIZE BUT IT WILL ALLOW FIRST CHICAGO TO STRENGTHEN ITS HAND AS A MAJOR PROVIDER OF BANKING SERVICES IN CHICAGO'S MICHIGAN AVENUE AREA ACCORDING TO LEO F MULLIN FIRST CHICAGO'S PRESIDENT LAKE SHORE ALSO OPERATES BRANCHES IN SEVERAL SUBURBAN CHICAGO COMMUNITIES HE SAID THE PROPOSED ACQUISITION ALSO HIGHLIGHTS A MAJOR SHIFT THAT HAS OCCURRED AMONG CHICAGO BANKS IN RECENT YEARS THE BANKS HAVE COME UNDER COMPETITIVE PRESSURE AS OUTOFSTATE BANKING INSTITUTIONS HAVE ENCROACHED ON THEIR TURF HOWEVER THE GRADUAL WHITTLING AWAY OF ANTIQUATED ILLINOIS LAWS THAT PREVENTED LARGE BANKS FROM OPERATING BRANCHES HAS ALSO OPENED UP NEW OPPORTUNITIES CHANGES IN BRANCH BANKING RESTRICTIONS WILL ALLOW FIRST CHICAGO TO MOVE INTO UNDERSERVED COMMUNITIES IN THE SUBURBS A SPOKESWOMAN FOR THE BANK SAID ILLINOIS PASSED LAWS YEARS AGO THAT PREVENTED LARGE BANKS FROM OPERATING BRANCHES THE FEAR AMONG SMALLTOWN BANKS WHO LOBBIED FOR THESE LAWS WAS THAT BIGCITY BANKS WOULD ACQUIRE THEM OR PUT THEM OUT OF BUSINESS AS A RESULT THE STATE DEVELOPED A FRAGMENTED BANKING MARKET WHICH DEPRIVED SMALLER COMMUNITIES OF THE ADVANTAGES OF BRANCH BANKING BUT OVER THE YEARS THAT LAW HAS BEEN BREAKING DOWN THE FIRST CHICAGO SPOKESWOMAN SAID NOTING THAT FIRST CHICAGO COMPLETED THE CONVERSION OF ITS AFFILIATE BANKS INTO BRANCHES EARLIER THIS YEAR BY CONSOLIDATING LAKE SHORE'S OPERATIONS WE CAN GET 50 SAVINGS ON EXPENSES MR MULLIN SAID UNDER THE AGREEMENT EACH SHARE OR SHARE EQUIVALENT OF CHICAGOBASED LAKE SHORE WILL BE EXCHANGED FOR FIRST CHICAGO SHARES VALUED AT 3108 THE EXCHANGE RATIO WILL BE BASED ON THE AVERAGE CLOSING PRICE OF FIRST CHICAGO SHARES DURING A 20DAY PERIOD ENDING JUST BEFORE THE TRANSACTION CLOSES WITH A MINIMUM PRICE OF 37 AND A MAXIMUM PRICE OF 53 PER SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FIRST CHICAGO CLOSED AT 42375 DOWN 1625 LAKE SHORE FELL 1625 TO 28375 IN NASDAQ STOCK MARKET TRADING FIRST CHICAGO SAID IT ALSO HAS THE OPTION TO BUY UP TO 199 OF LAKE SHORE'S OUTSTANDING SHARES UNDER CERTAIN CIRCUMSTANCES A MOVE USUALLY DESIGNED TO DISCOURAGE COMPETING OFFERS REGULATORS AND LAKE SHORE STOCKHOLDERS MUST APPROVE THE TRANSACTION WHICH IS EXPECTED TO CLOSE IN THE SECOND QUARTER OF 1994 9311230133 931123 INTERNATIONAL JAPAN'S HOUSEHOLD SPENDING FELL TOKYO JAPAN'S HOUSEHOLD SPENDING IN SEPTEMBER WAS 308652 YEN 2839 A HOUSEHOLD ON AVERAGE DOWN 17 FROM THE SAME MONTH A YEAR EARLIER IN REAL TERMS THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE REPORTED THE DECLINE IN THE LATEST REPORTING MONTH STRETCHED THE STREAK OF YEARONYEAR DECLINES TO FIVE MONTHS THE LONGEST SINCE 1981 WHEN HOUSEHOLD SPENDING POSTED YEARONYEAR DECLINES FROM JUNE THROUGH OCTOBER 9311230132 931123 GTE CHALLENGES FCC ON RULING INVOLVING VIDEOSERVICES TEST STAMFORD CONN GTE CORP SAID IT CHALLENGED A DECISION BY FEDERAL REGULATORS THAT COULD CANCEL ITS FIBEROPTIC AND CABLE PROJECT PROVIDING VIDEO AND INTERACTIVE SERVICES TO THE HOME IN ITS PETITION TO A FEDERAL APPEALS COURT GTE A REGIONAL PHONE COMPANY ALSO HOPES TO GAIN BROADER PERMISSION TO PROVIDE VIDEO SERVICES TO ITS TELEPHONE CUSTOMERS GTE'S FOURYEAROLD PROJECT IN CERRITOS CALIF IS ONE OF THE LONGESTRUNNING TESTS OF WIRING HOMES TO PROVIDE A NUMBER OF VIDEOONDEMAND HOMESHOPPING AND EDUCATIONAL SERVICES GTE HAD PERMISSION TO RUN THE TESTS UNTIL NEXT JUNE BUT THE PERMIT WAS REVOKED EARLIER THIS MONTH AFTER THE FEDERAL COMMUNICATIONS COMMISSION DECIDED THAT GTE HAD HAD AN UNNECESSARY AFFILIATION WITH A LOCAL CABLE COMPANY WHICH THE FCC SAID FLOUTED FEDERAL RULES THAT SEEK TO KEEP TELEPHONE COMPANIES SEPARATE FROM CABLE COMPANIES IN ITS PETITION TO THE US COURT OF APPEALS FOR THE NINTH CIRCUIT IN SAN FRANCISCO GTE ASSERTED THAT THE FCC RULING VIOLATES ITS CONSTITUTIONAL RIGHTS OF FREE SPEECH AND ALSO THAT THE FCC IS EXCEEDING ITS AUTHORITY UNDER THE CABLE ACT OF 1984 THE NATIONAL CABLE TELEVISION ASSOCIATION HAD CHALLENGED THE FCC'S ORIGINAL PERMIT FOR THE CERRITOS PROJECT IN EFFECT GTE ALSO IS SEEKING FEDERAL COURT PERMISSION TO OFFER CABLETV SERVICES TO ITS OWN CUSTOMERS IN EIGHT STATES INCLUDING CALIFORNIA BELL ATLANTIC CORP RECENTLY WAS GRANTED SUCH PERMISSION BUT THE RULING DIDN'T APPLY TO OTHER TELEPHONE COMPANIES GTE SAID IT COULD CONTINUE TO OPERATE THE CERRITOS PROJECT UNTIL NEXT MARCH BUT MUST TELL THE FCC HOW IT WILL COMPLY WITH THE ORDER BY DEC 9 THE CERRITOS PROJECT HAS HAD MIXED RESULTS BECAUSE TECHNICAL AND EQUIPMENT CONSTRAINTS LIMITED THE SERVICE THAT COULD BE MADE AVAILABLE TO CUSTOMERS ATHOUGH A SPOKESMAN SAID VOLUNTEERS WHO RECEIVED THE SERVICE WERE VERY ENTHUSIASTIC ABOUT IT 9311230131 931123 INTERNATIONAL FRENCH UNEMPLOYMENT INCREASES PARIS THE NUMBER OF UNEMPLOYED IN FRANCE ROSE BY 180000 IN SEPTEMBER COMPARED WITH SEPTEMBER 1992 SAID THE NATIONAL STATISTICS AGENCY WHICH IS KNOWN BY THE FRENCH ACRONYM INSEE IN UNADJUSTED TERMS UNEMPLOYMENT STOOD AT 119 AT THE END OF SEPTEMBER INSEE ADDED INSEE NOTED THAT SEASONAL FACTORS NORMALLY SEEN IN THE THIRD QUARTER WEREN'T AS STRONG THIS YEAR COMPARED WITH THE PREVIOUS YEAR THE THIRD QUARTER TYPICALLY SEES AN INFLUX OF JOBSEEKERS PARTICULARLY IN THE 1825 AGE CATEGORY 9311230130 931123 MONDAY'S MARKETS BOND SLUMP SENDS STOCKS TUMBLING LONG TREASURY YIELD SHOOTS UP TO 638 DOLLAR MOSTLY FALLS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL CONCLUDING THAT THE BOND MARKET SLUMP IS WORSE THAN THEY FIRST THOUGHT INVESTORS SENT STOCK PRICES TUMBLING IN A BROAD SELLOFF THE DOLLAR ENDED MOSTLY LOWER AFTER DIVING MORE THAN 40 POINTS THE DOW JONES INDUSTRIAL AVERAGE REBOUNDED MODERATELY TO FINISH 2376 POINTS LOWER AT 367025 STANDARD & POOR'S 500STOCK INDEX DROPPED 347 TO 45913 BUT MEDIUM AND SMALLCAPITALIZATION STOCKS FARED THE WORST THE NASDAQ COMPOSITE INDEX WHICH HAD SURGED 22 LAST MONTH AMID A WAVE OF MERGER MANIA PLUNGED 1343 POINTS TO 73813 ITS LOWEST LEVEL SINCE SEPT 21 INVESTORS CONTINUED HAMMERING TECHNOLOGY AND TELECOMMUNICATIONS STOCKS THE RISE IN LONGTERM INTEREST RATES WHICH CLIMB AS BOND PRICES FALL HAS BEEN MUCH LARGER THAN PEOPLE EXPECTED SAID DAVID SHULMAN STOCK STRATEGIST AT SALOMON BROTHERS INDEED ONLY A FEW WEEKS AGO MANY ECONOMISTS WERE PREDICTING ONLY A MODEST INCREASE IN INTEREST RATES WITH THE YIELD ON THE TREASURY'S 30YEAR BOND CLIMBING TO 625 AT MOST BUT YESTERDAY IN WHAT HAS BECOME A FAMILIAR PATTERN BOND PRICES SKIDDED AGAIN AND THE YIELD ON THE 30YEAR BOND SHOT UP TO 638 FROM 633 FRIDAY INTEREST RATES WILL KEEP CLIMBING UNTIL ONE OF THESE ECONOMIC NUMBERS SOFTENS UP A BIT PREDICTED DON FINE CHIEF MARKET ANALYST AT CHASE MANHATTAN BANK SOME STOCK PORTFOLIO MANAGERS MEANWHILE SAID LAST WEEK'S LOSSES WERE ENOUGH TO MAKE THEM RETRENCH BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY RAISED THE CASH IN HIS US EQUITY PORTFOLIO TO 11 FROM 4 EXPECTING THAT STOCKS WILL DECLINE 5 TO 10 FROM THEIR PEAKS IN THE COMING WEEKS WHILE LOW INTEREST RATES SUGGEST THAT THE BULL MARKET IS INTACT OTHER FACTORS PROMPT MR WIEN TO CALL FOR A CORRECTION THE ZEAL OF THE PUBLIC FOR MUTUAL FUNDS HAS SUBSIDED THE TECHNICAL PICTURE OF THE MARKET HAS DETERIORATED AND THE UNDERWRITING CALENDAR IS EXTREMELY HEAVY MR WIEN SAID MORE SELLING ADVICE CAME FROM WILLIAM O'NEIL WHO HEADS AN ADVISORY FIRM THAT BEARS HIS NAME AND WHO HAS A WIDE FOLLOWING AMONG INSTITUTIONAL INVESTORS HE TOLD CLIENTS IN A MEMO DATED FRIDAY TO LIGHTEN UP ON AGGRESSIVE STOCKS SOME ANALYSTS SAID THE HEAVY SELLOFF OF SPECULATIVE STOCKS WAS TRIGGERED BY HIS REMARKS IN THE MEMO MR O'NEIL SAID HE BELIEVES A BEAR MARKET HAS STARTED FOR A HOST OF GROWTH STOCK LEADERS LIKE NEWBRIDGE NETWORKS DOWN 18 IN THE PAST SIX TRADING DAYS INTERNATIONAL GAME TECHNOLOGY OFF 12 AND CABLETRON DOWN 5 FALLING STOCK MARKETS IN JAPAN AND EUROPE ALSO PRESSURED US STOCK PRICES SOME TRADERS SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 169 TO 10842 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2768 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1700 ISSUES FELL AND 484 ROSE BOND PRICES SLID THE TREASURY'S BENCHMARK 30YEAR ISSUE DROPPED 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MOSTLY LOWER IT WAS QUOTED AT 17038 MARKS AND 10843 YEN IN LATE NEW YORK TRADING COMPARED WITH 17146 MARKS AND 10845 YEN FRIDAY 9311230129 931123 QUESTAR CAPITAL SPENDING PLANS SALT LAKE CITY QUESTAR CORP SAID IT EXPECTS MORE THAN 235 MILLION IN CAPITAL EXPENDITURES IN 1994 A 33 INCREASE THE ENERGY COMPANY SAID IT IS SEEKING TO ACQUIRE NATURALGAS RESERVES COSTING AS MUCH AS 100 MILLION IT WILL ALSO SPEND 39 MILLION TO EXPAND ITS CLAY BASIN UNDERGROUND STORAGE AREA IN NORTHERN UTAH AND IT SAID IT EXPECTS TO EXPAND THE RETAILGAS DISTRIBUTION SYSTEM FOR ITS MOUNTAIN FUEL SUPPLY CO UNIT 9311230128 931123 BUTLER MANUFACTURING CO KANSAS CITY MO BUTLER MANUFACTURING CO SAID IT RECEIVED CONTRACTS VALUED AT 26 MILLION FOR BUILDING SYSTEMS AND RELATED ENGINEERING AND CONSTRUCTION SERVICES AMONG THE CONTRACTS ARE A 7 MILLION ORDER FOR AN AIRCRAFTMAINTENANCE CENTER FOR ROYAL AIR MAROC IN MOROCCO ANOTHER OVERSEAS ORDER CALLS FOR NEARLY 7 MILLION IN PRODUCTS FOR USE IN A 350000SQUAREFOOT TELECOMMUNICATIONS PLANT UNDER CONSTRUCTION IN THE PUDONG AREA OF CHINA 9311230127 931123 CIGNA GROUP TO PAY 108 MILLION TO SATISFY CALIFORNIA REBATE PLAN NEW YORK CIGNA INSURANCE GROUP A UNIT OF CIGNA CORP OF PHILADELPHIA AGREED TO PAY 108 MILLION TO POLICYHOLDERS IN A SETTLEMENT WITH CALIFORNIA INSURANCE REGULATORS AS PART OF A REBATE PLAN APPROVED BY VOTERS IN 1988 UNDER THE AGREEMENT THE GROUP WILL REFUND AN AVERAGE 104 EACH TO POLICYHOLDERS UNDER PROPOSITION 103 A FIVEYEAROLD INSURANCE ROLLBACK INITIATIVE THE CIGNA REBATE APPLIES TO CUSTOMERS WHO HELD POLICIES FROM NOV 8 1988 TO NOV 7 1989 PROPOSITION 103 HAS PRODUCED 750 MILLION IN REFUNDS AND CREDITS TO NEARLY SEVEN MILLION CALIFORNIA POLICYHOLDERS IN ADDITION TO THE ROLLBACK THE CIGNA COMPANIES AGREED NOT TO REQUEST RATE HIKES IN PERSONAL LINES OTHER THAN HOMEOWNERS INSURANCE FOR ONE YEAR AND TO LOWER BY 15 THE COVERAGE RATES FOR PHYSICAL DAMAGE TO PRIVATE PASSENGERS CHARGED BY ONE UNIT ALLEGIANCE INSURANCE CO THE CIGNA COMPANIES THAT AGREED TO THE REFUNDS ARE ALASKA PACIFIC ASSURANCE CO BANKERS STANDARD INSURANCE CO CIGNA PROPERTY & CASUALTY INSURANCE CO CIGNA FIRE UNDERWRITERS INSURANCE CO CENTURY INDEMNITY CO CIGNA INSURANCE CO CALIFORNIA UNION INSURANCE CO INSURANCE CO OF NORTH AMERICA PACIFIC EMPLOYERS INSURANCE CO ALLEGIANCE INSURANCE CO INDEMNITY INSURANCE CO OF NORTH AMERICA ALLIED INSURANCE CO AND CONNECTICUT GENERAL FIRE & CASUALTY INSURANCE CO THE AGREEMENT ALSO COVERS TWO INSURERS SOLD BY THE CIGNA GROUP IN 1989 THAT BECAME PART OF THE HORACE MANN INSURANCE GROUP HORACE MANN INSURANCE CO AND TEACHERS INSURANCE CO 9311230126 931123 LEGAL PAPER CHASE SETTLES SMALL CLAIM AGAINST PRUDENTIAL SIMPLIFIED' ARBITRATION WINS INVESTOR 100 OF HER LOSSES BASED ON WRITTEN PLEADINGS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IMAGINE WINNING AN ARBITRATION AWARD WITHOUT HAVING TO BRING A WITNESS OR HOLD A HEARING JUST SHUFFLE SOME LEGAL PAPERS THAT'S WHAT SOME SMALL INVESTORS ARE DOING IN A PROCESS CALLED SIMPLIFIED ARBITRATION UNLIKE IN COURT OR IN A TYPICAL ARBITRATION PROCEEDING CASES BROUGHT UNDER SIMPLIFIED ARBITRATION ARE DECIDED SOLELY ON BRIEF WRITTEN PLEADINGS DISPUTES BROUGHT UNDER SUCH A PROCEDURE TYPICALLY INVOLVE LOSSES OF 10000 OR LESS EXCLUDING INTEREST IN THE LATEST CASE INVOLVING PRUDENTIAL SECURITIES INC A PACIFIC STOCK EXCHANGE ARBITRATOR AWARDED AN INVESTOR OUTOFPOCKET LOSSES IN AN ENERGY LIMITED PARTNERSHIP MARKETED BY PRUDENTIAL PLUS 65 INTEREST AS WELL AS ATTORNEY'S AND FORUM FEES THE TOTAL AWARD THOUGH JUST 2005 COVERED 100 OF THE INVESTOR'S DAMAGES THAT'S A FAR GREATER PERCENTAGE THAN THAT BEING OFFERED BY THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT TO 130000 INVESTORS IN A 120 MILLION SETTLEMENT IN A BIG CLASSACTION CASE INVOLVING THE SAME ENERGY PARTNERSHIPS UNDER THE SETTLEMENT FILED IN A NEW ORLEANS FEDERAL COURT INVESTORS WOULD RECEIVE ON AVERAGE LESS THAN 40 OF THEIR LOSSES A HEARING ON THE CLASSACTION SETTLEMENT PROPOSAL IS SET FOR JANUARY THE CHOICE OF WHETHER TO ACCEPT THE SETTLEMENT OR TAKE SMALLER CASES TO SIMPLIFIED ARBITRATION IS REALLY A SINGLEDIGIT IQ TEST SPONSORED BY PRUDENTIAL ALLEGES STUART GOLDBERG AN ATTORNEY IN AUSTIN TEXAS WHO WON THE AWARD IN THE SIMPLIFIED ARBITRATION CASE NONSENSE PRUDENTIAL SECURITIES SAYS YOU CAN'T HOLD UP WINS' IN AN ARBITRATION AND SAY THAT IS REPRESENTATIVE OF EVERYTHING THAT HAPPENS SAYS A PRUDENTIAL SECURITIES SPOKESMAN THESE THINGS ARE ALL INDIVIDUAL AND ARE JUDGED ON THEIR MERITS THE SIMPLIFIED CASE WAS FILED BY CAROLE MCWILLIAM A 52YEAROLD FARMINGTON HILLS MICH SALES REPRESENTATIVE FOR HEALTH AND BEAUTYCARE PRODUCTS MS MCWILLIAM ALLEGED THAT A PRUDENTIAL SECURITIES BROKER TOLD HER THAT THE PRUDENTIALBACHE ENERGYINCOME LIMITED PARTNERSHIP SERIES V WAS A CONSERVATIVE INVESTMENT FOR HER INDIVIDUALRETIREMENT ACCOUNT IN A WRITTEN OPINION PACIFIC EXCHANGE ARBITRATOR IRVING PORUSH SAID SINCE THIS INVESTMENT WAS FOR CLAIMANT'S IRA THIS HIGH RISK INVESTMENT WAS NOT SUITABLE FOR MEETING HER INVESTMENT OBJECTIVES 9311230125 931123 ECONOMY BANKS DEVISE WAYS FOR FIRMS TO HEDGE AGAINST STOCKOPTION ACCOUNTING RULE BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTMENT BANKERS ARE PEDDLING NEW HEDGING DEVICES TO SOFTEN THE IMPACT OF A CONTROVERSIAL ACCOUNTING PROPOSAL TO DEDUCT THE COST OF STOCKOPTION GRANTS FROM CORPORATE PROFITS THE PROPOSAL MADE BY THE FINANCIAL ACCOUNTING STANDARDS BOARD THIS YEAR WOULDN'T TAKE EFFECT UNTIL 1997 BUT IT HAS ALREADY GENERATED FIERCE OPPOSITION IN THE BUSINESS COMMUNITY ESPECIALLY FROM STARTUP COMPANIES AND HIGHTECHNOLOGY FIRMS THAT USE OPTIONS TO ATTRACT TALENTED EXECUTIVES MANY COMPANIES COMPLAIN THAT DEDUCTING OPTION COSTS WOULD SHARPLY DEPRESS THEIR PROFITS THEY HAVE CALLED FOR CONGRESSIONAL LEGISLATION TO STOP FASB FROM ISSUING THE RULE NEXT YEAR WHEN THE PROPOSAL WAS MADE ACCOUNTANTS AND COMPENSATION CONSULTANTS SAID THEY SAW NO WAY AROUND IT BUT INVESTMENT BANKERS SEARCHED THEIR SHELVES FOR HEDGE PRODUCTS AND CAME UP WITH SEVERAL THAT WOULD APPEAR TO ENABLE CORPORATIONS TO EASE THE JOLT TO THE COMPANY OR ITS SHAREHOLDERS BENEFITS CONSULTANTS SAY MANY ARE SELLING THEM NOW TO GET A JUMP ON THE COMPETITION BEFORE THE RULE TAKES EFFECT HERE'S HOW SOME CONSULTANTS SAY THE NEW HEDGING STRATEGY WOULD WORK CORPORATIONS WOULD BUY CALL OPTIONS ON THEIR STOCK AT THE TIME THEY GRANT OPTIONS TO THEIR EXECUTIVES THE CALL OPTIONS WOULD ALLOW THE COMPANY TO BUY ITS STOCK AT A CERTAIN PRICE USUALLY AT A SLIGHT PREMIUM TO THE CURRENT PRICE WITHIN A CERTAIN PERIOD AN OFFICIAL AT CHASE MANHATTAN CORP WHO REQUESTS ANONYMITY SAID THE EXERCISE OF SUCH CALL OPTIONS WOULD PARTIALLY OFFSET THE AFTERTAX COST OF THE STOCK OPTION BY PERMITTING THE COMPANY TO GET AN IMMEDIATE TAX DEDUCTION FOR THE CALL OPTION IT'S INEVITABLE THAT WALL STREET WOULD FIND WAYS TO MITIGATE THE EFFECT OF FASB'S STOCKOPTION PROPOSAL BECAUSE OF THE LEVEL OF ANXIETY THAT THIS FASB PROPOSAL IS PROVOKING SAID ROBERT SALWEN A PRINCIPAL WITH WILLIAM M MERCER INC A BENEFITS CONSULTANT BASED HERE BANKS AND WALL STREET FIRMS OFFERING THE NEW HEDGES INCLUDE CHASE GOLDMAN SACHS & CO AND BANKERS TRUST NEW YORK CO THESE FIRMS DECLINE TO SAY WHICH CORPORATE CLIENTS HAVE DECIDED TO USE THE HEDGES OR ARE CONSIDERING THEM WE CANNOT SAY WHICH COMPANIES ARE INTERESTED IN THESE HEDGES BUT CAN SAY THE HEDGES ARE BEING EXTREMELY WELLRECEIVED IN THE MARKETPLACE SAID THE CHASE OFFICIAL AN OFFICIAL AT GOLDMAN SACHS ACKNOWLEDGED THAT THE FIRM IS OFFERING SUCH HEDGES TO CLIENTS BUT DECLINED TO COMMENT FURTHER AT BANKERS TRUST BRUCE TULLY MANAGING DIRECTOR SAID MANY OF OUR CORPORATE CLIENTS ARE INTERESTED IN THESE HEDGES BUT HE DECLINED TO NAME ANY UNDER THE FASB PROPOSAL A STOCK OPTION'S COST WOULD BE MEASURED AT THE DAY OF ITS GRANT AND ITS COST WOULD BE DEDUCTED FROM NET INCOME FOR THE YEAR A JUSTRELEASED SURVEY OF 27 COMPANIES BY THE ACCOUNTING FIRM COOPERS & LYBRAND SHOWS THAT THIS COST WOULD REDUCE PROFIT 34 FOR MATURE COMPANIES AND A DEVASTATING 27 FOR STARTUP OR HIGHTECH COMPANIES BANKERS TRUST'S MR TULLY SAID THAT USE OF HEDGES BOUGHT BY COMPANIES FROM THE BANK COULD HELP OFFSET THE DILUTIVE EFFECT OF STOCKOPTION GRANTS ON SHAREHOLDERS' EQUITY IN THE COMPANY OUR HEDGES PERMIT THE COMPANY TO RECEIVE A PAYMENT FROM US AT THE TIME THE EMPLOYEE EXERCISES HIS OPTIONS HE SAID THAT PAYMENT OFFSETS DILUTION BY THE EXERCISE OF THE EMPLOYEE STOCK OPTIONS AND INCREASES THE COMPANY'S AVAILABLE CAPITAL UNDER CURRENT ACCOUNTING RULES COMPANIES ALREADY MUST DEDUCT THE COST OF STOCK OPTIONS IF THEY ARE RELATED TO THE PERFORMANCE OF THE COMPANY OR INDIVIDUAL BUT A COMPANY CAN AVOID THE DEDUCTION IF IT ISSUES OPTIONS WITH FIXED EXERCISE PRICES AND OFFERS SPECIFIC AMOUNTS OF OPTIONS TO EMPLOYEES FOR EXAMPLE AMERICAN TELEPHONE & TELEGRAPH CO WAS ABLE TO ISSUE THOUSANDS OF OPTIONS TO ITS TOP EMPLOYEES IN 1991 EXERCISABLE IF AT&T'S STOCK ROSE FROM 20 TO 50 FROM THE DAY OF ISSUANCE WITHOUT DEDUCTING THE OPTIONS' COSTS FROM PROFITS THE REASON IS THAT THE EXERCISE PRICE OF THE OPTIONS WAS ABOVE THE MARKET PRICE OF THE COMPANY'S STOCK THE DAY THE OPTIONS WERE ISSUED SO THEY WEREN'T CONSIDERED PERFORMANCERELATED ON THE OTHER HAND CITICORP SAID IT HAD TO DEDUCT THE COST OF RECENT STOCK OPTIONS IT ISSUED BECAUSE THE EXERCISE PRICE WAS THE SAME AS THE STOCK'S MARKET PRICE ON THE DAY THE OPTIONS WERE ISSUED THE CITICORP OPTIONS ALSO WERE TIED TO THE STOCK RISING TO CERTAIN LEVELS 9311230124 931123 MUTUAL FUNDS MANAGER OF FIDELITY DIVIDEND FUND MAY BE FOLLOWING IN HER DAD'S FOOTSTEPS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL LIKE FATHER LIKE DAUGHTER THE LATEST FUND MANAGER BEATING THE MARKET AT FIDELITY INVESTMENTS IS ABIGAIL P JOHNSON DAUGHTER OF FIDELITY'S CHAIRMAN EDWARD C JOHNSON III AND THAT MAKES MANY PEOPLE SPECULATE THAT MS JOHNSON HAS MOVED A STEP CLOSER TO ONE DAY RUNNING THE BOSTON MUTUALFUND POWERHOUSE HERSELF MS JOHNSON 31 YEARS OLD HAS BEEN MANAGING FIDELITY DIVIDEND GROWTH FUND SINCE LATE APRIL AND HAS TURNED IN A TOTAL RETURN INCLUDING PRICE CHANGE AND REINVESTED DIVIDENDS OF 17 THROUGH LAST THURSDAY THAT'S A STRIKING NINE PERCENTAGE POINTS AHEAD OF THE TOTAL RETURN OF THE STANDARD & POOR'S 500 INDEX INCLUDING DIVIDENDS WHAT'S MORE MS JOHNSON TURNED IN THOSE STRONG NUMBERS DESPITE A MARKET THAT HAS MAULED MANY DIVIDENDGROWTH FUNDS WHICH BUY STOCKS OF COMPANIES WITH RISING DIVIDENDS MS JOHNSON SAYS SHE STEERED CLEAR OF BIG CONSUMER STOCKS SUCH AS PHILIP MORRIS COS KELLOGG CO AND NIKE INC TRADITIONAL FAVORITES OF DIVIDENDGROWTH FUNDS INSTEAD I BOUGHT A LOT OF TELECOMMUNICATION NAMES THAT SOARED IN PRICE SHE SAYS THOSE BIG INDUSTRY CALLS ACCOUNT FOR THE MARKETBEATING RETURN OF THE 90 MILLION FUND BY TAKING CONTROL OF HER FIRST DIVERSIFIED STOCK FUND MS JOHNSON SEEMS TO BE MOVING DOWN THE PATH TO SUCCEED HER FATHER AS HEAD OF FIDELITY MS JOHNSON IS THE ELDEST JOHNSON CHILD AND THE ONLY ONE CURRENTLY WORKING AT FIDELITY THE JOHNSON FAMILY OWNS JUST ABOUT ALL THE VOTING STOCK IN CLOSELY HELD FIDELITY ACCORDING TO NEWSLETTER FIDELITY INSIGHT FORBES MAGAZINE ESTIMATES THE FAMILY FORTUNE AT 17 BILLION IT DOESN'T HURT MS JOHNSON'S PROSPECTS THAT SHE'S OFF TO A FAST START AS A MONEY MANAGER HER FATHER PUTS A PREMIUM ON SKILLFUL MONEY MANAGEMENT HE TURNED IN A 104 GAIN AT MAGELLAN FUND IN 1967 A FEAT THAT ELUDED PETER LYNCH MR JOHNSON'S RENOWNED SUCCESSOR BUT IT'S IMPOSSIBLE TO TELL FROM THE BRIEF PERIOD THAT MS JOHNSON HAS RUN THE FUND WHETHER SHE HAS THE SAME ACUMEN FOR MONEY MANAGEMENT THAT HER FATHER HAD MS JOHNSON A SLENDER SELFPOSSESSED WOMAN SAYS SPECULATION THAT SHE WILL ONE DAY SUCCEED HER FATHER IS A COMPLETELY PREMATURE CONCLUSION SHE SAYS SHE CAN'T SEE INTO THE FUTURE AS FOR NOW I'M GLAD I'M DOING WHAT I'M DOING FIDELITY DIVIDEND GROWTH INVESTS MOSTLY IN DIVIDENDPAYING STOCKS THAT MS JOHNSON THINKS WILL KEEP RAISING THEIR DIVIDENDS I LOOK FOR ESTABLISHED GROWTH COMPANIES SHE SAYS NOT THE LATEST WHIZBANG INITIAL PUBLIC OFFERING IF A COMPANY'S GOING TO HAVE GROWING DIVIDENDS IT'S GOT TO HAVE GROWING EARNINGS SHE LOOKS FOR STRONG CASH FLOW AND MANAGEABLE DEBT BUT THE FUND HAS MORE LEEWAY THAN MANY DIVIDENDGROWTH FUNDS IT CAN INVEST HEAVILY IN COMPANIES THAT AREN'T YET PAYING DIVIDENDS INCLUDING HOME SHOPPING NETWORK THE TELEVISION VENDOR OF MERCHANDISE RANGING FROM GEWGAWS TO PERSONAL COMPUTERS I COULDN'T RESIST MAKING IT MY BIGGEST POSITION SAYS MS JOHNSON WHO COVERED HOME SHOPPING AS AN ANALYST UNDER ITS PRIOR MANAGEMENT IT WAS A COMPLETELY MISMANAGED COMPANY SHE SAYS AND THAT TURNED OFF WALL STREET NOW NEW MANAGEMENT IS IN CHARGE OF THE COMPANY AND THAT CHANGES THINGS A LOT SHE SAYS HOME SHOPPING HAS THE POTENTIAL TO EVENTUALLY EARN 1 A SHARE VERSUS A LOSS OF 15 CENTS A SHARE THAT ANALYSTS ESTIMATE FOR 1993 ACCORDING TO FIRST CALL AN INVESTMENT INFORMATION SERVICE SINCE LIBERTY MEDIA CORP OWNS A MAJORITY OF THE SHARES HOME SHOPPING NETWORK HAS A VERY PROMINENT ROLE IN THIS GREAT MEDIA CONGLOMERATE TO BE FORMED BY BELL ATLANTIC CORP'S ACQUISITION OF TELECOMMUNICATIONS INC AND LIBERTY MEDIA SHE SAYS THE FUND'S OTHER LARGEST HOLDINGS ARE GENERAL ELECTRIC CORP PRIMERICA CORP FRENCH INKPEN MAKER BIC CORP CML GROUP WHICH OWNS NORDICTRACK MAKER OF EXERCISE EQUIPMENT CITICORP TEXTRON INC KANSAS CITY SOUTHERN INDUSTRIES RAILROAD AND MONEY MANAGEMENT FORD MOTOR CO AND CARNIVAL CRUISE LINES MS JOHNSON HAS CUT BACK ON TELECOMMUNICATIONS STOCKS THAT HAVE RISEN SHARPLY IN PRICE THE GROUP MAKES UP ABOUT 5 OF THE FUND NOW DESPITE A LOT OF NAMES THAT DOUBLED IN STOCK PRICE I'M OPTIMISTIC IN THE LONG TERM BUT THIS INDUSTRY HAS BECOME PRETTY OVERHEATED WHILE MS JOHNSON PREVIOUSLY AVOIDED THE HARDHIT PHARMACEUTICAL STOCKS SHE NOW SAYS THEY ARE LIKELY TO MOVE UP AS A GROUP SHE WON'T DISCLOSE WHAT SHE'S BUYING YET SHE'S ALSO BEEN BUYING STOCKS OF FURNITURE COMPANIES BECAUSE HOUSING STARTS HAVE BEEN REALLY STRONG BUT FURNITURE STOCKS HAVE BEEN LAGGING PEOPLE DON'T BUY HOUSES TO LEAVE THEM EMPTY SHE LIKES BASSETT FURNITURE AND ROWE FURNITURE AMONG OTHERS BUT SHE CONTINUES TO AVOID BATTERED CONSUMER STOCKS SUCH AS PHILIP MORRIS AFTER GRADUATING FROM HOBART & WILLIAM SMITH COLLEGE IN 1984 SHE WORKED FOR A COUPLE OF YEARS AT CONSULTANT BOOZ ALLEN & HAMILTON SHE JOINED FIDELITY FULLTIME AFTER GETTING AN MBA FROM HARVARD IN 1988 MS JOHNSON ROSE THROUGH THE RANKS IN TYPICAL FASHION SPENDING FIVE YEARS AS A STOCK ANALYST FIDELITY HAS ITS ANALYSTS RUN STOCK FUNDS INVESTING IN THE INDUSTRY THEY COVER SHE RAN SUCH FUNDS AS FIDELITY SELECT INDUSTRIAL EQUIPMENT TELECOMMUNICATIONS AND MOST RECENTLY DEVELOPING COMMUNICATIONS SHE HAS NOT RECEIVED ANY SPECIAL TREATMENT AS FAR AS I CAN TELL SAYS ERIC KOBREN EDITOR OF FIDELITY INSIGHT HER FATHER CALLS HER UP TO TALK ABOUT STOCKS HE'S STILL REAL INTERESTED IN STOCKS SHE SAYS SOMETIMES MR JOHNSON DISAPPROVES OF ONE OF HER PICKS AND GROWLS WHY DO YOU OWN THAT AFTER A LOT OF PERSUADING I GOT HIM TO BUY HOME SHOPPING THE OTHER DAY MS JOHNSON SAYS HE FINALLY SAID OKAY I DON'T THINK HOME SHOPPING IS SOMETHING HE RELATES TO 9311230123 931123 ADVANCED GAMING ACQUISITION SAN DIEGO ADVANCED GAMING TECHNOLOGY INC SAID IT INTENDS TO ACQUIRE ALL THE ASSETS OF AMERICAN MULTISYSTEMS OF RAMONA CALIF TERMS WEREN'T DISCLOSED THE COMPANY SAID AMERICAN'S FIXED VIDEO BINGO TERMINAL SYSTEM ENABLES PLAYERS TO USE BOTH PAPER AND AS MANY AS 600 CARDS PER GAME ELECTRONICALLY AND ALLOWS AUTOMATIC DAUBING AND SORTING VERN BLANCHARD FOUNDER OF AMERICAN MULTISYSTEMS WILL JOIN ADVANCED GAMING AS CHIEF ENGINEER THE COMPANY SAID IT SECURED ORDERS FOR THE INSTALLATION OF 160 UNITS OF AMERICAN'S PROPRIETARY TERMINALS OVER THE NEXT SIX MONTHS AND EXPECTS THE SALES TO GENERATE 11 MILLION A YEAR 9311230122 931123 BUSINESS BRIEF NEW JERSEY BANK SUES TWO BIG SIX FIRMS OVER WORKER'S THEFT PENNSVILLE NJ A NEW JERSEY SAVINGS BANK SUED TWO BIG SIX ACCOUNTING FIRMS OVER A BANK EMPLOYEE'S THEFT THAT RESULTED IN HUGE LOSSES IN A SUIT FILED IN SUPERIOR COURT OF CAMDEN COUNTY NJ FIRST HOME SAVINGS BANK SAID THAT DELOITTE & TOUCHE FAILED TO DETECT THE EMBEZZLEMENT OF CUSTOMER FUNDS BY AN EMPLOYEE OF FIDELITY MUTUAL SAVINGS & LOAN OF WESTMONT NJ FIRST HOME ACQUIRED FIDELITY IN JUNE 1992 THE THEFTS WHICH TOOK PLACE OVER A 16YEAR PERIOD RESULTED IN MORE THAN 6 MILLION IN LOSSES TO FIDELITY FIRST HOME IS ALSO SUING KPMG PEAT MARWICK WHICH IT HAD HIRED TO ASSIST IN DETERMINING WHETHER TO BRING SUIT AGAINST DELOITTE THE SUIT CHARGES THAT PEAT MARWICK EMPLOYEES ENGAGED IN AN OVERALL CONSPIRACY AND AGREED TO MAKE NO NEGATIVE STATEMENTS ABOUT DELOITTE PEAT MARWICK ALTERED REPORTS BECAUSE OF COLLUSION WITH DELOITTE AND A DESIRE TO PROTECT ITSELF AND FELLOW 'BIG SIX' ACCOUNTING FIRMS THE SUIT ALLEGES DELOITTE & TOUCHE HAS NOT SEEN THE LAWSUIT IN QUESTION BUT BASED UPON OUR KNOWLEDGE OF THIS SITUATION WE DO NOT BELIEVE THAT THE LAWSUIT COULD HAVE ANY MERIT AGAINST OUR FIRM A SPOKESMAN FOR THE ACCOUNTING FIRM SAID A SPOKESWOMAN FOR PEAT MARWICK SAID THE CLIENT OBVIOUSLY GOT A REPORT FROM US THEY DIDN'T LIKE AND HAVE NOW RESORTED TO MAKING ABSURD CHARGES AGAINST US WE FEEL THIS IS A SERIOUS INSULT TO OUR PROFESSIONALS AND OUR WORK THE SUIT CHARGES THAT PEAT MARWICK HAD AN INCENTIVE TO PROTECT DELOITTE FROM A POTENTIALLY ADVERSE RULING BECAUSE BOTH ACCOUNTING FIRMS ARE PART OF A COMMON LIABILITY INSURANCE POOL MOREOVER PEAT MARWICK HAD A CONFLICT OF INTEREST REGARDING ITS ENGAGEMENT WITH FIDELITY MUTUAL BECAUSE IT WAS A DEFENDANT IN SIMILAR ACCOUNTING MALPRACTICE LAWSUITS AND WAS BEING THREATENED WITH OTHERS THE SUIT ALLEGES THE SUIT SEEKS TO RECOVER AN ESTIMATED 10 MILLION IN LOSSES INCLUDING INTEREST AS WELL AS UNSPECIFIED PUNITIVE DAMAGES 9311230121 931123 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS NOV 23DEC 6 THIS NEW MUSEUM DESIGNED BY CALIFORNIA ARCHITECT FRANK O GEHRY BOASTS 11000 SQUARE FEET OF EXHIBITION SPACE AND A PERMANENT COLLECTION OF SOME 13000 WORKS IT FEATURES STRONG COLLECTIONS OF AMERICAN ART FROM THE FIRST HALF OF THE 20TH CENTURY ASIAN AMERICAN EUROPEAN AND NATIVE AMERICAN CERAMICS AND KOREAN FURNITURE UNIVERSITY OF MINNESOTA 333 E RIVER ROAD 612 6259494 FOR THIS YEAR'S ASIAN AUTUMN SHOW CHIEF CURATOR MICHAEL CUNNINGHAM HAS DRAWN TOGETHER SCROLL PAINTINGS SCREENS AND CERAMICS TO OFFER AN EXPANSIVE VIEW OF WHAT HE CALLS A TIME OF FERVENT ECCENTRICITY INCLUDED ARE UKIYOE ARTISTS KAIGETSUDO ANDO MIYAGAWA CHOSHUN AND KUBO SHUNMAN KUBO'S HANGING SCROLL CHINESE BEAUTY DEPICTS A GLAMOROUS WOMAN IN AN INFORMAL MOMENT VASTLY DIFFERENT FROM THE FORMAL DRESS AND POSES THAT HAD LONG CHARACTERIZED JAPANESE FIGURE PAINTING EQUALLY IMPORTANT ARE ARTISTS KNOWN AS THE ECCENTRICS OR INDIVIDUALISTS WHO DELIGHTED IN THE UNEXPECTED IMAGE AS WELL CLEVELAND MUSEUM OF ART 11150 EAST BLVD THROUGH MARCH 6 THE AUTHOR'S ORIGINAL MANUSCRIPT IS THE CENTERPIECE OF THIS EXHIBIT THE 66PAGE MANUSCRIPT FULL OF CORRECTIONS AND REVISIONS TO THE TEXT APPEARS VIRTUALLY AS IT DID IN LATE NOVEMBER 1843 WHEN DICKENS RUSHED IT TO THE PRINTER IN TIME FOR CHRISTMAS PUBLICATION AMONG THE OTHER ITEMS ON VIEW ARE ORIGINAL ILLUSTRATIONS BY HK BROWNE FOR THE CHRISTMAS CHAPTER IN DICKENS'S THE PICKWICK PAPERS THE BROOKLYN PHILHARMONIC ORCHESTRA JOINS FORCES WITH THE DUKE ELLINGTON ORCHESTRA UNDER THE DIRECTION OF MERCER ELLINGTON FOR ELLINGTON'S NEW YORK THIS EVENT A CELEBRATION OF LIFE IN 1920S HARLEM CONCLUDES THE BROOKLYN ACADEMY OF MUSIC'S NEXT WAVE FESTIVAL ON TAP ARE THE NEW YORK PREMIERE OF ELLINGTON'S JAZZ OPERA QUEENIE PIE WITH MELBA MOORE AND HIS EARLY SYMPHONIC JAZZ WORKS HARLEM COME SUNDAY AND DAVID DANCED BEFORE THE LORD BAM 30 LAFAYETTE AVE DEC 3 AND 4 718 6221000 LUCIANO PAVAROTTI RETURNS TO THE MET FOR THE SECOND TIME THIS SEASON IN A NEW PRODUCTION OF VERDI'S I LOMBARDI ALSO IN THE CAST APRILE MILLO BRUNO BECCARIA AND SAMUEL RAMEY MARK LAMOS MAKES HIS DIRECTING DEBUT JAMES LEVINE CONDUCTS AND SETS ARE BY JOHN CONKLIN LINCOLN CENTER 66TH STREET AND BROADWAY DEC 2 6 11 14 17 AND 21 JAN 7 12 15 AND 20 212 3626000 SOPRANO RENEE FLEMING SINGS THE TITLE ROLE IN A NEW PRODUCTION OF JENUFA BY DIRECTOR FRANCESCA ZAMBELLO AND DESIGNER ALISON CHITTY THIS TRAGIC TALE CONSIDERED TO BE LEOS JANACEK'S BREAKTHROUGH MASTERPIECE ALSO STARS MARILYN ZSCHAU WHO RECENTLY SANG ELEKTRA IN LONDON AS JENUFA'S BABYKILLING STEPMOM KOSTELNICKA BERISLAV KLOBUCAR CONDUCTS CELEBRATING ITS 16TH SEASON THE CIRCUS RECREATES THE SPLENDOR AND SPECTACLE OF VENICE DURING CARNEVALE TRANSFORMING ITS ONE RING INTO A VENETIAN PIAZZA POPULATED BY A TRAVELING COMMEDIA DELL'ARTE TROUPE ALFREDO AND ROMANO COLOMBAIONI ITALY'S MOST RENOWNED COMEDY TEAM SET OUT TO JOIN THE TROUPE BUT ARE CONTINUALLY IF HILARIOUSLY DISAPPOINTED INTERSPERSED WITH THE COMEDY ARE SOME NOTABLE CIRCUS ACTS INCLUDING CHINA'S SHENYANG ACROBATIC TROUPE SWISS JUGGLER SERGE PERCELLY AND WORLD CHAMPION BULGARIAN GYMNASTS VESTA & ELI LINCOLN CENTER 66TH STREET AND BROADWAY THROUGH JAN 9 9311230120 931123 SMALL STOCK FOCUS FEARS OVER RISING RATES RATTLE STOCKS ACCELERATING MARKET'S BROAD SELLOFF BY WARREN GETLER AND MICHAEL SANTOLI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS TOOK IT ON THE CHIN MONDAY RATTLED BY RENEWED FEARS ABOUT RISING INTEREST RATES THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET SLID 414 POINTS OR 165 TO FINISH AT 24685 IN AN ACCELERATION OF THE RECENT BROAD SELLOFF IN SMALL CAPS THE INDEX WHICH LAST WEEK DROPPED 695 POINTS OR 269 HAS DECLINED FOR SIX CONSECUTIVE TRADING DAYS WE'RE DEFINITELY SEEING JITTERS IN THE MARKET AND A LOT OF PROFITTAKING SAID RICHARD SILVERMAN EXECUTIVE VICEPRESIDENT AT REICH & CO IN CHARGE OF EQUITY TRADING SMALLCAPITALIZATION STOCKS BEGAN THE DAY LOWER AMID EARLY LOSSES IN THE BOND MARKET AND RETREATING OVERSEAS MARKETS ALTHOUGH LARGECAP INDEXES RECOVERED FROM THEIR SESSION LOWS LOSSES IN SMALLCOMPANY SHARES DEEPENED NEAR THE CLOSE OF TRADING THIS IS A TOUGH MARKET MONEY IS BEING MOVED INTO CASH ON CONCERN OVER RISING INTEREST RATES MR SILVERMAN ADDED THE TREASURY'S BENCHMARK 30YEAR BOND CLOSED DOWN 3/4 POINT SENDING ITS YIELD UP TO 638 INDEED A NUMBER OF TRADERS SAID THE MARKET WAS SET BACK BY REPORTS THAT BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY WAS RAISING THE CASH ELEMENT IN HIS US EQUITY PORTFOLIO TO 11 FROM 4 AS RECENTLY AS NOV 10 MR WIEN SAID THAT HE EXPECTED THE DOW JONES INDUSTRIAL AVERAGE TO REACH THE NEIGHBORHOOD OF 4000 BEFORE A DOWNTURN ENSUED BUT REICH & CO'S MR SILVERMAN SAID THAT THE SELLING WAVE IN SMALLCAP STOCKS MAY BE OVERDONE AND THAT HE'S BANKING ON A RALLY OFF THESE LEVELS STATISTICALLY THE MARKET RALLIES RIGHT BEFORE THANKSGIVING HE NOTED I'M LOOKING FOR A BOUNCE MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER GROUP INC SAID SMALLCAP STOCKS WENT VERY FAR VERY FAST WE'RE SEEING CONFIRMATION THAT SMALLCAP STOCKS ARE MUCH MORE VOLATILE THAN LARGE CAPS MS FARRELL NOTED THAT ALTHOUGH THE MARKET IS SHOWING GENERAL WEAKNESS FORMERLY FASTCLIMBING SECTORS SUCH AS TELECOMMUNICATIONS AND TECHNOLOGY HAVE LED THE RECENT RETREAT WHICH SHE CALLS A NORMAL MODERATE CORRECTION KIDDER PEABODY'S SENIOR SMALLSTOCK TRADER LANCE ZIPPER SAID HE DOESN'T EXPECT SMALLCOMPANY SHARES TO REBOUND MUCH UNTIL THERE IS A MEANINGFUL RALLY IN THE BOND MARKET BARRY BERMAN HEAD OF EQUITY TRADING AT ROBERT W BAIRD & CO SAID THAT ALTHOUGH HE EXPECTS TO SEE PROFITTAKING WEIGHING DOWN THE MARKET WELL INTO DECEMBER BARGAIN SHOPPERS MAY CAUSE THE CONSOLIDATION TO END BEFORE THE END OF THE YEAR INVESTORS BATTERED FINANCIAL SERVICES ISSUES AS FEAR OF RISING INTEREST RATES SPREAD FURTHER THROUGH THE MARKET WATERHOUSE INVESTORS SERVICE OF NEW YORK TUMBLED 2 TO 25 3/8 MINNEAPOLISBASED INTERREGIONAL FINANCIAL GROUP LOST 1 3/8 TO CLOSE AT 26 5/8 AND FIRST INDIANA CORP SLIPPED 3/4 TO 22 3/4 FIRST ALABAMA BANCSHARES DROPPED 2 TO 29 3/4 THE BIRMINGHAMBASED BANK RECEIVED APPROVAL MONDAY TO ACQUIRE SECOR BANK SECOR CLOSED AT 19 5/8 DOWN 3/4 MEN'S WEARHOUSE INC DIPPED 1 3/4 TO CLOSE AT 25 1/4 THE FREMONT CALIF MEN'S RETAIL APPAREL GROUP WHICH REPORTED A 94 INCREASE IN THIRDQUARTER EARNINGS FRIDAY SAID IT KNEW OF NO REASON FOR THE DECLINE IN ITS STOCK PRICE IN RECENT DAYS THE STOCK WAS DOWN 5 1/2 LAST WEEK RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THAT SENIOR INSIDERS AT THE COMPANY HAVE BEEN SELLING STOCK SINCE LATE SEPTEMBER A COMPANY OFFICIAL SAID THE SALES WERE FOR TAXRELATED REASONS OXFORD HEALTH PLANS OF DARIEN CONN LOST 2 1/4 TO CLOSE AT 37 1/4 AS THE DOW JONES MARKETCAPITALIZATION WEIGHTED INDEX OF HEALTHCARE PROVIDERS FELL 274 AMONG BIOTECHNOLOGY COMPANIES GAITHERSBURG MDBASED MEDIMMUNE SLID 1 1/4 TO 26 3/4 BIG BOARDTRADED BIOCRAFT LABORATORIES PLUMMETED 4 3/8 TO CLOSE AT 25 1/8 THE WALL STREET JOURNAL REPORTED THE FAIR LAWN NJ COMPANY IS HOLDING DISCUSSIONS WITH THE FOOD AND DRUG ADMINISTRATION TO RESOLVE COMPLIANCE ISSUES INVOLVING ITS MANUFACTURING PRACTICES IN NEW YORK STOCK EXCHANGE TRADING LEWIS GALOOB TOYS OF SAN FRANCISCO FELL 7/8 TO 8 3/4 AFTER AN ARTICLE IN BARRON'S QUESTIONED A MONEY MANAGER'S BULLISH 1995 EARNINGS ESTIMATE KAISER ALUMINUM JOINED IN THE RALLY IN ALUMINUM ISSUES SHARES OF THE HOUSTONBASED COMPANY GAINED 1/2 TO CLOSE AT 9 1/2 CLEAR CHANNEL COMMUNICATIONS SLID 3 TO CLOSE AT 38 1/8 THE SAN ANTONIO BROADCASTER ANNOUNCED AFTER FRIDAY'S CLOSE THAT IT WOULD DIVEST 11 RADIO STATIONS TO NEW ORLEANSBASED SNOWDEN BROADCASTING IN WHICH IT HAS AN 80 OWNERSHIP STAKE BUT NO VOTES CALLAWAY GOLF JUMPED 1 7/8 TO 46 7/8 AFTER A MERRILL LYNCH & CO ANALYST UPGRADED THE STOCK TO BUY FROM ABOVE AVERAGE THE ANALYST ALSO RAISED HIS 1993 AND 1994 PERSHARE EARNINGS ESTIMATES FOR THE CARLSBAD CALIF FIRM TO 225 AND 265 RESPECTIVELY ALLIED GROUP OF DES MOINES IOWA ROSE 2 TO 25 3/4 AFTER A KEMPER SECURITIES ANALYST UPGRADED THE STOCK TO STRONG BUY FROM LONGTERM BUY THE CHANGE WAS BASED ON THE SHARES' PRICE WHICH WAS AT A HIGH OF 32 3/4 SEVERAL MONTHS AGO THE ANALYST SAID ON THE NASDAQ NATIONAL MARKET 89 ISSUES REACHED NEW LOWS FOR THE YEAR WHILE ONLY 14 HIT NEW HIGHS 9311230119 931123 LUKENS STEEL TO RAISE PRICES COATESVILLE PA LUKENS INC'S LUKENS STEEL CO UNIT FOLLOWING SEVERAL OTHER STEELMAKERS SAID IT WILL RAISE BASE PRICES BY ABOUT 3 FOR STEEL PLATE USED FOR CONSTRUCTION AND BRIDGES THE NEW PRICE FOR CARBON AND HIGHSTRENGTH LOWALLOY PLATE IS 530 A TON UP FROM 515 A TON THE PRICE FOR FLOOR PLATE WILL RISE TO 560 A TON FROM 545 LUKENS CITED HIGHER LABOR AND RAW MATERIAL COSTS THE NEW PRICES ARE EFFECTIVE FOR ORDERS RECEIVED AFTER NOV 29 AND SHIPPED AFTER JAN 2 9311230118 931123 TECHNOLOGY & HEALTH NEXT WILL LICENSE ITS OBJECT' SOFTWARE TO SUN OPEN UP ITS OPERATING SYSTEM BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL SUN MICROSYSTEMS INC ANNOUNCED IT WILL LICENSE NEXT INC'S ZIPPY OBJECTORIENTED SOFTWARE UNDER A WIDERANGING ALLIANCE SUN WILL LICENSE NEXT'S APPLICATION INTERFACE SOFTWARE TO RUN AS A LAYER WITHIN SUN'S POPULAR SOLARIS OPERATING SYSTEM THE SOFTWARE WILL ALLOW SOLARIS USERS TO TAKE ADVANTAGE OF NEXT'S POWERFUL OBJECTORIENTED TECHNOLOGY INSTEAD OF WRITING EVERY SOFTWARE PROGRAM FROM SCRATCH PROGRAMMERS CAN PLUG TOGETHER OBJECTS OR MODULAR PIECES OF SOFTWARE TO CREATE OR CUSTOMIZE PROGRAMS MORE QUICKLY SAVING WEEKS OR EVEN MONTHS OF WORK SUN WILL ALSO INVEST 10 MILLION IN NEXT NEXT IN TURN WILL OPEN UP ITS PROPRIETARY OPERATING SYSTEM CALLED NEXTSTEP BY LICENSING ITS SOCALLED APPLICATION ENVIRONMENT TO ALL COMERS AT NO CHARGE THE JOVIAL ANNOUNCEMENT BY BOTH COMPANIES WAS IN SHARP CONTRAST TO EVENTS EARLIER THIS YEAR WHEN AN INDIGNANT STEVEN P JOBS NEXT'S CHAIRMAN ALLEGED IN A MEMO TO EMPLOYEES THAT SUN WAS TRYING TO THWART NEXT'S EFFORTS TO MAKE ITS ADVANCED OPERATING SOFTWARE AN INDUSTRY STANDARD I THINK THEY WOULD RATHER SEE US DEAD THAN ALIVE FUMED MR JOBS WHO HELPED FOUND APPLE COMPUTER INC BEFORE BEING OUSTED IN 1985 IN RESPONSE SUN CHAIRMAN SCOTT MCNEALY SAID NEXT WAS TOO SMALL TO SURVIVE AS A MAJOR SOFTWARE PLAYER SOFTWARE DEVELOPERS ARE HOPING THAT OBJECTORIENTED PROGRAMMING WILL RELIEVE THE SOFTWARE BOTTLENECK THAT HAS PREVENTED THEM AND MAJOR CORPORATE USERS FROM QUICKLY WRITING AND ADAPTING PROGRAMS TO TAKE ADVANTAGE OF MORE POWERFUL COMPUTER SYSTEMS OR SHIFTING BUSINESS OPPORTUNITIES MICROSOFT CORP WHOSE OPERATING SYSTEMS RUN NEARLY 90 OF ALL PERSONAL COMPUTERS WILL OFFER OBJECT TECHNOLOGY IN A NEW OPERATING SYSTEM CODENAMED CAIRO IN LATE 1994 OR EARLY 1995 APPLE AND INTERNATIONAL BUSINESS MACHINES CORP ARE PLANNING TO INCORPORATE OBJECT PROGRAMMING TOOLS IN THEIR NEW OPERATING SYSTEMS AS WELL USING TECHNOLOGY BEING DEVELOPED BY A JOINT VENTURE CALLED TALIGENT FOR SUN WHICH DOMINATES THE MARKET FOR UNIXBASED WORKSTATIONS AND WHICH HAD BEEN TRYING TO DEVELOP ITS OWN OBJECTORIENTED APPLICATION INTERFACE THE ALLIANCE WITH NEXT WILL ALLOW IT TO BEAT ITS MAJOR OPERATINGSYSTEM RIVALS TO MARKET WITH OBJECT TECHNOLOGY BY MORE THAN A YEAR FOR MR JOBS THE DEAL OFFERS A CHANCE TO MAKE A KEY PORTION OF NEXTSTEP AN INDUSTRY STANDARD WHICH COULD SHARPLY INCREASE NEXTSTEP'S SALES PROGRAMS WRITTEN TO TAKE ADVANTAGE OF THE NEXTSTEP APPLICATION ENVIRONMENT IN SOLARIS OR ANY OTHER OPERATING SYSTEM WILL ALSO RUN ON NEXTSTEP MOREOVER UNDER THE PACT WITH SUN MR JOBS IS MODIFYING NEXTSTEP TO RUN ON THE SPARC MICROPROCESSORS THAT NOW RUN SOLARIS NOW THEY WOULD RATHER SEE US ALIVE THAN DEAD QUIPPED MR JOBS WHO HAS STRUGGLED TO FIND SUPPORT FOR NEXT'S WORKSTATIONS AND OPERATING SYSTEM SINCE FOUNDING THE COMPANY EARLY THIS YEAR HE ABANDONED THE COMPUTERSYSTEM BUSINESS AND ADAPTED NEXTSTEP TO RUN ON MACHINES EMPLOYING INTEL CORP'S BESTSELLING LINE OF MICROPROCESSORS MR MCNEALY SAID TENSIONS BETWEEN NEXT AND SUN DISSIPATED AFTER NEXT QUIT THE HARDWARE BUSINESS AND MR JOBS AGREED TO OPEN UP HIS APPLICATION INTERFACE IN THIS BUSINESS EVERYONE IS AN ENEMY AND A FRIEND AT THE SAME TIME HE PHILOSOPHIZED FOR MR JOBS A MAN FAMOUS FOR TRYING TO GO HIS OWN WAY WITH PROPRIETARY HARDWARE SUCH AS THE MACINTOSH AND THE NEXT MACHINE AS WELL AS PROPRIETARY OPERATING SYSTEMS THE DECISION TO OPEN UP IS A PERSONAL MILESTONE WE WERE PERSUADED THAT THE WORLD HAS CHANGED MR JOBS SAID IT'S AN OPENSYSTEM WORLD 9311230117 931123 WORLD COLOR TO BUY GEORGE RICE NEW YORK WORLD COLOR PRESS INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE COMMERCIAL PRINTING COMPANY GEORGE RICE & SONS LOS ANGELES FOR 86 MILLION INCLUDING ASSUMED INDEBTEDNESS GEORGE RICE WHICH PRINTS HIGHQUALITY COMMERCIAL PRODUCTS SUCH AS MOVIE POSTERS AND ANNUAL REPORTS HAS ABOUT 100 MILLION IN REVENUE CLOSELY HELD WORLD COLOR PRESS WHICH PRINTS MAGAZINES CATALOGS AND DIRECTORIES HAS ABOUT 850 MILLION IN ANNUAL REVENUE WORLD COLOR IS CONTROLLED BY KOHLBERG KRAVIS ROBERTS & CO 9311230116 931123 AMERICAN VANGUARD ACQUISITION LOS ANGELES AMERICAN VANGUARD CORP'S AMVAC CHEMICAL CORP COMPLETED ITS ACQUISITION OF A COTTON CROP INSECTICIDE FROM DUPONT AGRICULTURAL PRODUCTS A UNIT OF DUPONT CO TERMS WERE NOT DISCLOSED AMERICAN VANGUARD SAID THE PURCHASE OF BIDRINR INSECTICIDE INCLUDES ALL INVENTORIES OF BIDRINR OWNERSHIP OF THE ENVIRONMENTAL PROTECTION AGENCY REGISTRATIONS AND TOXICOLOGICAL DATA AND TRADEMARK THE COMPANY SAID IT EXPECTS THE PURCHASE TO PROVIDE A FAVORABLE CONTRIBUTION TO THE COMPANY'S SALES AND EARNINGS BEGINNING IN THE CURRENT QUARTER 9311230115 931123 UNITED DOMINION INDUSTRIES JOB CHARLOTTE NC UNITED DOMINION INDUSTRIES LTD SAID ITS LITWIN ENGINEERS & CONSTRUCTORS INC UNIT WAS AWARDED A 30 MILLION CONTRACT TO PROVIDE SERVICES FOR A SYNTHETIC RUBBER MANUFACTURING PLANT TO BE BUILT IN MAOMING CHINA THE CONTRACT WAS AWARDED BY SINOPEC INTERNATIONAL UNITED DOMINION SAID THE SERVICES TO BE PROVIDED INCLUDE PROCESS DESIGN PROCUREMENT AND CONSTRUCTION ADVICE THE 50000TONPERYEAR FACILITY WILL PRODUCE RUBBER FOR MANUFACTURING TIRES FOOTWARE AND ROOFING MATERIALS IT IS EXPECTED TO BEGIN PRODUCTION IN LATE 1996 UNITED DOMINION IS A HOLDING COMPANY WITH INTERESTS IN MANUFACTURING ENGINEERING AND CONSTRUCTION 9311230114 931123 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 3 LOW 3 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 335 60 TO 179 DAYS 337 180 TO 239 DAYS 345 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 344 60 DAYS 342 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 271 TWO MONTHS 274 THREE MONTHS 287 SIX MONTHS 303 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 337 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 330 60 DAYS 327 90 DAYS 327 120 DAYS 328 150 DAYS 329 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/2 THREE MONTHS 3 9/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 614 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 13 WEEKS 330 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 722 60 DAYS 729 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 723 60 DAYS 733 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311230113 931123 TRANSWORLD TELECOMMUNICATIONS SALT LAKE CITY TRANSWORLD TELECOMMUNICATIONS INC AND GROUPE VIDEOTRON LTEE OF MONTREAL SAID VIDEOTRON WILL BUY 80 OF THE STOCK OF TRANSWORLD'S WIRELESS TVTAMPA BAY INC UNIT THE COMPANIES ALSO SAID THEY FORMED A 5050 JOINT VENTURE CALLED WIRELESS HOLDINGS INC TO BUY AND DEVELOP WIRELESS CABLE MARKETS IN THE US WIRELESS HOLDINGS HAS A GOAL OF FOUR MILLION HOMES THE COMPANIES ALSO SAID VIDEOTRON BOUGHT 15 MILLION OF TRANSWORLD TELECOMMUNICATIONS SERIES B CONVERTIBLE REDEEMABLE PREFERRED STOCK 9311230111 931123 TECHNOLOGY & HEALTH ONTARIO ANTISMOKING LAW AIMS TO CUT CIGARETTE SALES IN HALF BY DECADE'S END BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE ONTARIO GOVERNMENT UNVEILED ONE OF THE MOST AMBITIOUS ANTISMOKING LAWS IN THE WORLD AIMING TO CUT CIGARETTE SALES IN THE PROVINCE IN HALF BY THE END OF THE DECADE THE PROPOSED LAW WHICH TARGETS MAINLY SMOKERS AMONG THE PROVINCE'S YOUTHS WOULD BAN THE SALE OF TOBACCO IN VENDING MACHINES AND PHARMACIES IT ALSO WOULD RAISE THE LEGAL AGE TO BUY TOBACCO TO 19 FROM 18 AND SET STIFF FINES FOR RETAILERS WHO SELL TOBACCO TO MINORS IT IS SHOCKING THAT NEARLY ONEQUARTER OF OUR YOUNG PEOPLE SMOKE SAID ONTARIO HEALTH MINISTER RUTH GRIER IF WE CAN HELP THEM REACH AGE 20 WITHOUT SMOKING ODDS ARE THEY WILL NEVER START THIS DEADLY HABIT DAVID SWEANOR A LAWYER FOR THE NONSMOKERS' RIGHTS ASSOCIATION SAID THE PROPOSED RULES ARE AMONG THE MOST COMPREHENSIVE ANTISMOKING LAWS IN THE WORLD SOME JURISDICTIONS INCLUDING NEW YORK CITY HAVE BANNED CIGARETTE SALES IN VENDING MACHINES BUT NOT IN DRUG STORES THE ONTARIO BILL WHICH WILL PROBABLY BECOME LAW NEXT YEAR WOULD ALLOW THE PROVINCE TO PUT WARNINGS ON TOBACCOPRODUCT PACKAGING IN ADDITION TO CURRENT WARNINGS FROM THE FEDERAL GOVERNMENT MORE WARNINGS WILL REDUCE THE GLAMOUR OF THE CIGARETTE PACKAGING MR SWEANOR SAID THE ANTISMOKING LOBBY GROUP PLANS TO URGE THE ONTARIO GOVERNMENT TO REQUIRE GENERIC PACKAGING OF TOBACCO PRODUCTS CANADA'S TOBACCO INDUSTRY SLAMMED THE PROPOSED LAW WE DON'T BELIEVE IT IS GOING TO BE EFFECTIVE AT ALL IN REDUCING SMOKING AMONG YOUTHS SAID PHIL GILLIES PRESIDENT OF THE SMOKERS' FREEDOM SOCIETY WHICH IS FUNDED BY CANADA'S TOBACCO COMPANIES INSTEAD HE SAID THE LAW WILL ENCOURAGE BLACKMARKET SALES OF CIGARETTES IN ONTARIO WHERE ALREADY ABOUT ONETHIRD OF ALL CIGARETTES ARE SMUGGLED FROM THE US HIGH CANADIAN TAXES PUSH THE PRICE OF CIGARETTES SOLD LEGALLY IN CANADA TO ABOUT TWICE THE COST THAT EXISTS IN THE US THE SMUGGLERS AREN'T ASKING FOR PROOF OF AGE MR GILLIES SAID ADDING THAT HIS GROUP SUPPORTS THE DRIVE TO REDUCE SMOKING AMONG YOUTHS BUT NOT AT THE EXPENSE OF LEGAL BUSINESSES DRUG MART LTD A CHAIN OWNED BY IMASCO LTD OF MONTREAL SAID THE PROPOSED LAW IS DRACONIAN THE COMPANY EXPECTS THE LAW WILL FORCE MANY PHARMACIES TO CLOSE BECAUSE OF A DECLINE IN SALES CURRENTLY ABOUT 26 OF ONTARIO'S 10 MILLION PEOPLE SMOKE ALTHOUGH THIS IS WELL BELOW SMOKING LEVELS OF A DECADE AGO SMOKING AMONG YOUTHS HAS BEEN ON THE RISE IN THE LAST FEW YEARS THE ONTARIO GOVERNMENT SAID MS GRIER THE ONTARIO HEALTH MINISTER SAID SHE ISN'T WORRIED ABOUT LOSS OF TAX REVENUE FROM REDUCED TOBACCO SALES SHE SAID THE PROVINCE SPENDS FAR MORE IN HEALTHRELATED COSTS CAUSED BY SMOKING THAN IT REALIZES FROM TOBACCO TAX REVENUE 9311230110 931123 FINANCING BUSINESS MAXUS ENERGY CORP MAXUS ENERGY CORP DALLAS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 875 MILLION OF PREFERRED STOCK AT 25 A SHARE THE OIL AND NATURAL GAS COMPANY SAID PROCEEDS WILL BE ADDED TO WORKING CAPITAL AND WILL BE USED FOR GENERAL CORPORATE PURPOSES WHICH MAY INCLUDE THE REDEMPTION OF DEBT THE LEAD UNDERWRITER IS MERRILL LYNCH & CO 9311230109 931123 MARKETING & MEDIA ADVERTISING CHIAT/DAY TO MAKE INFOMERCIALS THROUGH A JOINTVENTURE DEAL BY KEVIN GOLDMAN IMAGINE A TELEVISION VIEWER'S WORST NIGHTMARE THE INCESSANT ENERGIZER BUNNY COMMERCIAL THAT JUST KEEPS GOING AND GOING AND GOING AND DOESN'T END AFTER 30 SECONDS INSTEAD THE SPOT DRAGS ON FOR A FULL HALFHOUR IT'S NOT A COMMERCIAL IT'S AN INFOMERCIAL THAT POSSIBILITY NOW EXISTS CHIAT/DAY THE ADVERTISING AGENCY RESPONSIBLE FOR THE ENERGIZER COMMERCIALS IS JOINING FORCES WITH GIRALDI SUAREZ PRODUCTIONS THE TEAM RESPONSIBLE FOR THE CREATION OF MICHAEL JACKSON'S BREAKTHROUGH MUSIC VIDEO BEAT IT TOGETHER THEY PLAN TO PRODUCE INFOMERCIALS THE LATEST MARKETING DARLING THE TWO COMPANIES ARE FORMING A JOINT VENTURE TO BE CALLED INFOMEDIA EXECUTIVES FROM CHIAT/DAY AND GIRALDI SUAREZ SAY INFOMEDIA TO BE BASED IN NEW YORK EVEN HAS A FIRST CLIENT A LINE OF COSMETIC PRODUCTS FROM NORMA KAMALI OTHERS ARE ON THE WAY INCLUDING A BOOK THE TITLE OF WHICH WASN'T DISCLOSED OTHER ADVERTISING AGENCIES INCLUDING OMNICOM GROUP'S DDB NEEDHAM AND INTERPUBLIC GROUP'S NETWORK OF AGENCIES HAVE FORMED INHOUSE UNITS TO PRODUCE INFOMERCIALS WE'RE INTO CUSTOMIZATION FOR CLIENTS SAYS JACK MARIUCCI EXECUTIVE CREATIVE DIRECTOR AT NEEDHAM WHO IS ALSO CREATIVE DIRECTOR OF THE INFOMERCIAL UNIT AND RIGHT NOW ADS MEAN MORE THAN JUST A TRADITIONAL 30SECOND COMMERCIAL CLIENTS SAYS MR MARIUCCI HAVE DIFFERENT NEEDS SOME HAVE NEW BRANDS THAT WON'T NECESSARILY BE SOLD THROUGH RETAIL OUTLETS BUT RATHER THROUGH A TOLLFREE TELEPHONE NUMBER INFOMERCIAL VENTURES ARE ALSO A WAY TO SNARE CLIENTS FROM OTHER AGENCIES ALBEIT ONLY FOR THE INFOMERCIAL PROJECT AND NOT THE REGULAR ADVERTISING ACCOUNT FOR EXAMPLE BROCKWAY DIRECT RESPONSE TELEVISION A PARTNERSHIP BETWEEN RICHARD BROCKWAY A DIRECTRESPONSE MARKETING EXECUTIVE AND EC TELEVISION INTERPUBLIC GROUP'S TELEVISION PRODUCTION AND DISTRIBUTION DIVISION IS WORKING ON AN INFOMERCIAL FOR A NEW CAR POLISH FROM FIRST BRANDS IN DANBURY CONN A CONSUMERPRODUCTS MAKER OF SUCH BRANDS AS GLAD PRESTONE STP AND SIMONIZ THE ADVERTISING IS STILL HANDLED BY YOUNG & RUBICAM THE PARTNERSHIP IS ALSO WORKING ON ELONGATED COMMERCIALS FOR SUCH COMPANIES AS BLACK & DECKER AND REDKEN LABORATORIES BEAUTY PRODUCTS IT'S ANOTHER SERVICE AND OTHER SOURCE OF INCOME FOR INTERPUBLIC SAYS LARRY LAMATTINA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EC TELEVISION THE JOINT VENTURE IS JUST THE LATEST MOVE BY CHIAT/DAY TO TRY TO STAY AHEAD OF THE CHANGING NEEDS OF CLIENTS IT IS ALSO THE LATEST ATTEMPT BY THE ONCE HIGHFLYING AGENCY TO REINVENT ITSELF IN THE FACE OF MODEST WINS AND SIGNIFICANT CLIENT LOSSES THE AGENCY RECENTLY MERGED ITS TORONTO AND NEW YORK OFFICES TO FORM CHIAT/DAY EAST ALSO JAY CHIAT THE AGENCY'S CHAIRMAN IS BUSY SETTING PLANS TO ESTABLISH A VIRTUAL OFFICE ONE IN WHICH EMPLOYEES DON'T HAVE OFFICES PER SE BUT RATHER WORK FROM OFFICE CONFERENCE ROOMS CARS AND HOMES SOME SAY MR CHIAT IS VISIONARY OTHERS CONTEND THAT THE EXECUTIVE IS MERELY TRYING TO PUT THE BEST FACE ON AN UNFORTUNATE SITUATION IN WHICH THE AGENCY NO LONGER HAS THE CLIENT ROSTER TO SUPPORT EXTRAVAGANT OFFICES NO MATTER ADVERTISING IS AN INDUSTRY THAT REVELS IN IMAGERY AND WHERE PERCEPTION IS VIRTUALLY EVERYTHING CHIAT/DAY WHOSE INFINITI ADS FEATURING ACTOR JONATHAN PRYCE EPITOMIZE THE AGENCY'S SUAVE AND HIP PERSONA IS PUTTING ON A CALM FACE THE AGENCY LOST MAJOR CLIENTS INCLUDING NATIONAL CAR RENTAL SYSTEM AND REEBOK INTERNATIONAL AND FAILED TO SNARE THE INTERNATIONAL BUSINESS MACHINES' PERSONALCOMPUTER ACCOUNT AFTER BEING ONE OF THE FINALISTS TO BE SURE CHIAT/DAY PICKED UP SOME BUSINESS LATELY INCLUDING THE MEDIA BUYING FOR NYNEX AS WELL AS COCACOLA'S CHERRY COKE BRAND WHICH HASN'T TRADITIONALLY BEEN A BIG SPENDER YESTERDAY CHIAT/DAY SAID IT WAS CHOSEN BY STARTER A SPORTS APPAREL COMPANY TO HANDLE THE ADVERTISING FOR ITS ENTRY INTO THE HIGHLY COMPETITIVE SHOE MARKET WITH RUGGED TERRAIN THE SIZE OF THE BUDGET HAS YET TO BE DETERMINED IN AN INTERVIEW MR CHIAT CONCEDES THAT THE INFOMERCIAL JOINTVENTURE UNIT ISN'T PART OF THE TRADITIONAL AGENCY MAKEUP BUT WE HAVE THE OPPORTUNITY TO DO SOME INTERESTING PROJECTS WITH SOME NONCLIENTS AS WELL AS SOME CLIENTS HE DECLINED TO ELABORATE WE HAVE BEEN DOING AN EVALUATION AS TO WHERE THE AGENCY BUSINESS IS GOING HE SAYS MORE AND MORE COMPANIES ARE INTERESTED IN THE INFOMERCIAL FORM NOT ALL INFOMERCIALS ARE A HALFHOUR AND MR CHIAT SAYS THE AGENCY IS INTERESTED IN ALL LENGTHS WE'D BRING QUALITY WITHOUT LOSING THE SALES APPEAL SAYS MR CHIAT AND YOU HAVE IMMEDIATE EVIDENCE AS TO HOW GOOD THE PROGRAM IS BY THE SALES ORDERS YOU RECEIVE MR CHIAT IS PERSONAL FRIENDS WITH PHIL SUAREZ A PARTNER IN GIRALDI SUAREZ AND TALKS BEGAN INFORMALLY A WHILE AGO WE SAID TO JAY YOU HAVE THE CLIENTS WE HAVE THE EXPERTISE SO LET'S GO' SAYS BOB GIRALDI WHO ALONG WITH HIS PARTNER ALSO OWNS TWO NEW YORK CITY RESTAURANTS ONE TONY FRENCH THE OTHER TRENDY VIETNAMESE ONCE INFOMERCIALS LEFT THE WORLD OF THE USEDCAR SALESMAN I BECAME INTERESTED SAYS MR GIRALDI WHO DIRECTED SUCH COMMERCIALS AS NIGHT BASEBALL FOR GENERAL ELECTRIC AND I'M STUCK ON BANDAIDS FOR JOHNSON & JOHNSON WE DON'T WANT TO BE THE PRODUCER OF INFOMERCIALS FOR THE WOK SAYS MR GIRALDI TALKING FROM LOS ANGELES ON HIS CAR PHONE I RESPECT THOSE KINDS OF INFOMERCIALS BUT IT JUST ISN'T WHAT WE WANT TO DO AYER NEW YORK WHICH LOST AMERICAN TELEPHONE & TELEGRAPH'S GIANT CONSUMER LONGDISTANCE ADVERTISING ACCOUNT ON FRIDAY IS DISCUSSING A POSSIBLE MERGER WITH HAL RINEY & PARTNERS OF SAN FRANCISCO INDUSTRY EXECUTIVES SAID RINEY EXECUTIVES DIDN'T RETURN CALLS SEEKING COMMENT AYER DECLINED TO COMMENT BEYOND NOTING THAT IT IS HAVING DIALOGUES WITH FIRMS OFFERING SOMETHING TO COMPLEMENT THE SERVICES WE OFFER OUR CLIENTS AYER HAS BEEN SHOPPING FOR A MERGER PARTNER FOR AT LEAST A YEAR LAST YEAR IT HELD LONG DISCUSSIONS WITH KETCHUM COMMUNICATIONS IN PITTSBURGH ABOUT MERGING THE TALKS ULTIMATELY FELL THROUGH SHORTLY THEREAFTER A GROUP OF INVESTORS INCLUDING FORMER SAATCHI & SAATCHI JOINT CHIEF EXECUTIVE OFFICER RICHARD HUMPHREYS PROVIDED AYER WITH AN INFUSION OF CASH IN EXCHANGE FOR AN UNDISCLOSED STAKE RINEY ALSO HAS DONE SOME REENGINEERING THE AGENCY SOLD A MAJORITY STAKE IN ITS NEW YORK OPERATIONS TO ANGOTTI THOMAS HEDGE NEW YORK EARLIER THIS YEAR AYER AND RINEY BOTH CLOSELY HELD HAVE IN COMMON ONE IMPORTANT CLIENT GENERAL MOTORS CORP AYER CREATES THE AUTO MAKER'S CORPORATE ADS RINEY CREATES ADS FOR GM'S SATURN CORP THE RINEYAYER TALKS STARTED BEFORE AYER LOST ITS DOMINANT SHARE OF AT&T'S ESTIMATED 200 MILLION IN LONGDISTANCE BILLINGS ON FRIDAY AYER HASN'T YET ANNOUNCED PLANS FOR CUTBACKS IN THE WAKE OF THAT LOSS AN AYER SPOKESMAN DECLINED TO COMMENT ON THE IMPACT OF THE AT&T LOSS BURNETT REDUCTION LEO BURNETT CO CHICAGO SAID IT PLANS TO DISMISS ABOUT 200 OF THE 2200 EMPLOYEES OF ITS DOMESTIC OPERATIONS BY YEAR END A SPOKESMAN SAID THE CHANGES WERE MADE TO HELP THE AGENCY BE A MORE EFFICIENT ORGANIZATION BURNETT ON FRIDAY SAID IT HAD OFFERED EARLYRETIREMENT PACKAGES TO ABOUT 20 EMPLOYEES COLA BEARS COCACOLA CO'S COMPUTERANIMATED POLAR BEARS RETURN IN A HOLIDAY COMMERCIAL FOR COKE THAT ALSO FEATURES A COMPUTERIZED VERSION OF COKE'S VINTAGE SANTA CLAUS THE 30SECOND SPOT WAS CREATED BY THE HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY NAME CHANGE STRAIGHT ARROW PUBLISHERS INC NEW YORK PUBLISHER OF MAGAZINES INCLUDING ROLLING STONE AND US HAS CHANGED ITS NAME TO WENNER MEDIA INC THE COMPANY SAID JANN S WENNER IS OWNER AND CHAIRMAN OF THE COMPANY 9311230108 931123 WORKPLACE GOOD LOOKS CAN MEAN A PRETTY PENNY ON THE JOB AND UGLY' MEN ARE AFFECTED MORE THAN WOMEN BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL BEAUTY IT SEEMS EARNS CONSIDERABLY MORE THAN THE BEAST A NEW STUDY ON HOW GOOD LOOKS PAY OFF IN THE WORKPLACE HAS FOUND THE REWARDS TO BE SUBSTANTIAL ECONOMISTS DANIEL HAMERMESH OF THE UNIVERSITY OF TEXAS AT AUSTIN AND JEFF BIDDLE OF MICHIGAN STATE UNIVERSITY IN EAST LANSING FOUND THAT EDUCATION EXPERIENCE AND OTHER CHARACTERISTICS BEING EQUAL PEOPLE WHO ARE PERCEIVED AS GOODLOOKING EARN ON AVERAGE ABOUT 10 MORE THAN THOSE VIEWED AS HOMELY AND SURPRISINGLY MEN ARE MORE LIKELY THAN WOMEN TO PAY THE PENALTIES OF A BAD APPEARANCE ATTRACTIVE PEOPLE THE STUDY SAID TEND TO EARN ROUGHLY 5 MORE THAN PEOPLE WITH AVERAGE LOOKS UGLY PEOPLE TEND TO EARN ABOUT 5 LESS THAN AVERAGELOOKING PEOPLE HOWEVER DIFFERENCES EMERGE BETWEEN MEN AND WOMEN MEN WHO ARE UGLIER THAN AVERAGE TEND TO MAKE 9 LESS WHILE BELOWAVERAGE WOMEN MAKE ONLY 5 LESS THE PHENOMENON ISN'T LIMITED TO OCCUPATIONS WHERE LOOKS PLAY A BIG PART SUCH AS MODELING ACTING OR WORKING DIRECTLY WITH THE PUBLIC THE STUDY FOUND THAT LOOKS ALSO COUNT FOR HIGHER EARNINGS IN JOBS WHERE APPEARANCE PRESUMABLY PLAYS NO ROLE SUCH AS BRICKLAYING FACTORY WORK AND TELEMARKETING THE FINDINGS SUGGEST ANOTHER TYPE OF WORKPLACE BIAS IN ADDITION TO RACE AND GENDER PREJUDICE THERE DOES SEEM TO BE SOME REAL BASIC DISCRIMINATION GOING ON HERE MR HAMERMESH SAYS NAOMI WOLF AUTHOR OF THE BEAUTY MYTH AGREES BUT DESPITE THE EVIDENCE IN THE HAMERMESH/BIDDLE STUDY THAT MEN MAY BE MORE AFFECTED BY APPEARANCE BIAS THAN WOMEN MS WOLF ARGUES THAT WOMEN FACE GREATER DISCRIMINATION WHEN IT COMES TO LOOKS WOMEN ARE OFTEN TOLD OH YOU LOOK TOO PRETTY TO BE TAKEN SERIOUSLY' OR YOU DON'T LOOK PRETTY ENOUGH TO BE TAKEN SERIOUSLY' SHE SAYS MS WOLF ALSO CITES A RECENT STUDY THAT SHOWED THAT OBESE WOMEN SUFFER MORE ECONOMIC DEPRIVATION THAN OBESE MEN IN THE APPEARANCE STUDY INTERVIEWERS RATED THE RESPONDENTS ON A FIVEPOINT SCALE OF PHYSICAL APPEARANCE FROM STRIKINGLY HANDSOME OR BEAUTIFUL TO HOMELY THE FINDINGS WERE BASED ON DATA FROM THREE SURVEYS TWO IN THE US AND ONE IN CANADA WITH A TOTAL OF 7094 RESPONDENTS ANYONE WHO WAS LISTED AS TOTALLY AND PERMANENTLY DISABLED WAS EXCLUDED FROM THE EMPIRICAL WORK THE STUDY WAS FUNDED BY THE NATIONAL BUREAU OF ECONOMIC RESEARCH A NONPROFIT GROUP IN CAMBRIDGE MASS SEVERAL STUDIES HAVE EXAMINED THE CORRELATION BETWEEN EARNINGS AND APPEARANCE AND THE FINDINGS HAVE BEEN SIMILAR TO THE HAMERMESH/BIDDLE PROJECT ONE RECENT STUDY LOOKED AT EARNINGS OF MBA HOLDERS OVER THEIR FIRST 10 POSTDEGREE YEARS RATINGS OF BEAUTY BASED ON SCHOOL PHOTOGRAPHS CORRELATED POSITIVELY WITH STARTING AND SUBSEQUENT SALARIES FOR MEN THERE SEEMED TO BE NO RELATIONSHIP BETWEEN THE STARTING SALARIES OF WOMEN AND THEIR BEAUTY BUT ATTRACTIVE WOMEN EXPERIENCED FASTER SALARY GROWTH MR HAMERMESH HESITATES TO SAY HOWEVER THAT BEAUTY IS ONLY SKIN DEEP HE SUGGESTS THERE MAY BE ATTRIBUTES LINKED TO BEAUTY THAT MAKE THE EARNING POTENTIAL HIGHER FOR THIS GROUP OF PHYSICALLY BLESSED WORKERS FOR INSTANCE BETTERLOOKING PEOPLE MAY HAVE HIGHER SELFESTEEM FROM YEARS OF COMPLIMENTS THAT TRANSLATES INTO BETTER PERFORMANCE ON THE JOB ALSO GOOD LOOKS MAY INCREASE WORKERS' PRODUCTIVITY IF THEY HAVE TO DEAL WITH COLLEAGUES AND CUSTOMERS ONETOONE ON A REGULAR BASIS OF COURSE MR HAMERMESH SAYS THE REASON COULD BE FAR MORE BASIC EMPLOYERS DISPLAY FAVORITISM WHEN COMPENSATING AN ATTRACTIVE WORKER OVER AN UGLY ONE THE FACT THAT WOMEN MAY NOT BE AS HANDICAPPED BY BAD LOOKS MAY BE BECAUSE UNATTRACTIVE WOMEN ARE LESS LIKELY THAN ATTRACTIVE WOMEN OR MEN IN GENERAL TO JOIN THE LABOR FORCE ACCORDING TO THE STUDY THAT PUTS THEM IN A SEEMINGLY BAD FINANCIAL SPOT BECAUSE THE STUDY ALSO FOUND THAT UNATTRACTIVE WOMEN ARE MORE LIKELY TO BE MARRIED TO MEN WITH UNEXPECTEDLY LOW HUMAN CAPITAL 9311230107 931123 CONSUMER DEMAND FOR LOANS BY BANKS RISES SURVEY FINDS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER DEMAND FOR LOANS IS CONTINUING TO RISE AND BANKS INCREASINGLY ARE WILLING TO MAKE SUCH LOANS THE FEDERAL RESERVE FOUND IN ITS LATEST SURVEY OF SENIOR BANK LENDING OFFICERS CONSUMER LOANS AT BANKS HAVE EXPANDED RAPIDLY THIS YEAR FOLLOWING TWO YEARS OF RUNOFFS THE FED STAFF NOTED IN A SUMMARY OF THE SURVEY BANKERS MOST OFTEN CITED AN INCREASE IN APPLICATIONS FOR AUTO LOANS MORE THAN A QUARTER OF THE BANKS RESPONDING TO THE SURVEY REPORTED AN INCREASE IN THE NUMBER OF CONSUMERS LOOKING FOR INSTALLMENT LOANS AND MORTGAGES OVER THE PAST THREE MONTHS BUT MORE BANKS SAID APPLICATIONS FOR HOMEEQUITY LOANS ARE FALLING THAN SAID SUCH DEMAND IS GROWING PROBABLY BECAUSE HOMEOWNERS ARE PAYING OFF HOMEEQUITY LOANS BY TAKING OUT BIGGER MORTGAGES THE FED STAFF SUGGESTED NEARLY A FIFTH OF ALL THE BANKS RESPONDING TO THE SURVEY SAID THEY ARE MORE WILLING TO MAKE CONSUMERINSTALLMENT AND HOMEEQUITY LOANS THAN THEY WERE IN AUGUST AND JUST OVER 15 SAID THEY HAVE EASED STANDARDS FOR APPROVING MORTGAGES THE FED NOTED THAT DEMAND FOR BUSINESS LOANS BY LARGE COMPANIES WHICH HAD BEEN UP IN AUGUST HASN'T CHANGED MUCH SINCE THEN LARGELY BECAUSE BIG CORPORATIONS ARE BORROWING FROM OTHER SOURCES BUT DEMAND FROM SMALL AND MEDIUMSIZED COMPANIES CONTINUES TO INCREASE IN FURTHER EVIDENCE THAT THE CREDIT CRUNCH IS GRADUALLY EASING THE FED NOTED THAT BANKS ON BALANCE LOWERED THE BAR FOR MAKING BUSINESS LOANS OVER THE PAST THREE MONTHS EXCEPT FOR COMMERCIALREALESTATE LOANS BUT THE PRIMARY BENEFICIARIES WERE LARGE CONCERNS RATHER THAN THE SMALLER COMPANIES THAT HAVE FEWER FINANCING ALTERNATIVES IN RESPONSE TO FED QUERIES THE BANKS SAID THAT ONLY ONEFIFTH TO ONEQUARTER OF THEIR OUTSTANDING LOANS ARE LINKED TO THE WIDELY FOLLOWED PRIME INTEREST RATE NEARLY HALF OF ALL HOMEEQUITY LOANS AND AROUND 40 OF ALL COMMERCIAL AND INDUSTRIAL LOANS PARTICULARLY LOANS MADE TO SMALL COMPANIES ARE LINKED TO THE PRIME RATE BUT COMPARED WITH THE LATE 1980S FEWER LOANS MADE TO BIG COMPANIES ARE TIED TO THAT RATE ASKED WHY THE SPREAD BETWEEN THE PRIME RATE AND OTHER INTEREST RATES IS MUCH WIDER THAN IT HAS BEEN IN THE PAST 48 OF THE 59 BANKS RESPONDING TO THE QUESTION SAID A LOWER RATE WOULDN'T INCREASE BORROWING BY CURRENT CUSTOMERS AND 43 SAID IT WOULDN'T DRAW NEW CUSTOMERS ROUGHLY HALF THE BANKS CITED OTHER FACTORS TOO INCLUDING THE INCREASED COST OF MAKING LOANS DUE TO VARIOUS REGULATIONS AND CAPITAL STANDARDS 9311230106 931123 WHEELINGPITTSBURGH NOTES NEW YORK WHEELINGPITTSBURGH CORP SAID HOLDERS TENDERED 1654 MILLION PRINCIPAL AMOUNT OR 945 OF ITS 1225 FIRSTMORTGAGE NOTES DUE 2000 THE HOLDERS WILL BE PAID NEXT TUESDAY WHEELINGPITTSBURGH IS A HOLDING COMPANY FOR WHEELINGPITTSBURGH STEEL CORP WHICH MAKES FLATROLLED STEEL 9311230105 931123 LAW US COURT RULING BARS HIRING BIAS AGAINST THE OBESE BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL APPEALS COURT RULED FOR THE FIRST TIME THAT JOB DISCRIMINATION AGAINST OBESE PEOPLE IS ILLEGAL THE BOSTONBASED COURT ENDORSED THE POSITION OF THE FEDERAL EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN THE CASE THAT SEVERELY OVERWEIGHT PEOPLE ARE PROTECTED FROM DISCRIMINATION UNDER THE FEDERAL DISABILITIES LAW THE RULING UPHELD A JURY AWARD OF 100000 TO A RHODE ISLAND WOMAN WHO WAS DENIED A JOB BECAUSE OF HER WEIGHT THE WOMAN BONNIE COOK HAD SUED THE RHODE ISLAND DEPARTMENT OF MENTAL HEALTH RETARDATION AND HOSPITALS AFTER IT REFUSED TO HIRE HER AS AN ATTENDANT AT A SCHOOL FOR MENTALLY RETARDED PEOPLE ALTHOUGH SOME STATE COURTS HAVE ADDRESSED THE ISSUE RULING FOR AND AGAINST OBESE PEOPLE SEEKING PROTECTION FROM JOB DISCRIMINATION THE COOK CASE IS THE FIRST TO BE DECIDED BY A FEDERAL APPEALS COURT THE DECISION GREATLY ENHANCES THE IMPACT OF THE EEOC'S RECENTLY REPORTED DECLARATION THAT IT CONSIDERS OBESITY TO BE A PROTECTED CATEGORY THOUGH THE EEOC STATEMENT CLEARED THE WAY FOR OBESE PEOPLE TO FILE FEDERAL LAWSUITS THE BOSTON COURT DECISION IS THE FIRST TO INDICATE THAT THEY MAY BE ABLE TO WIN THEM IN COURT IN A SOCIETY THAT ALL TOO OFTEN CONFUSES SLIM' WITH BEAUTIFUL' OR GOOD' MORBID OBESITY CAN PRESENT FORMIDABLE BARRIERS TO EMPLOYMENT THE THREEJUDGE APPELLATE PANEL SAID IN EXPLAINING ITS DECISION CIVILRIGHTS ADVOCATES AND GROUPS FIGHTING WEIGHT DISCRIMINATION HAD TAKEN UP THE COOK CASE THIS DECISION WILL SEND A VERY POSITIVE MESSAGE TO PEOPLE IN BONNIE COOK'S POSITION ACROSS THE COUNTRY THAT THEY CAN FIGHT THIS TYPE OF DISCRIMINATION SAID STEVEN BROWN EXECUTIVE DIRECTOR OF THE AMERICAN CIVIL LIBERTIES UNION AFFILIATE IN RHODE ISLAND WHICH IS HANDLING THE CASE MR BROWN SAID THAT IN REFUSING TO HIRE MS COOK THE RHODE ISLAND AGENCY WAS PERPETUATING UNFAIR STEREOTYPES ABOUT OVERWEIGHT PEOPLE THAT ARE COMPARABLE TO THE DISCRIMINATION OTHER GROUPS HAVE FACED ON THE JOB HE ADDED THAT THE ISSUE OF DISCRIMINATION AGAINST THE OBESE HAS ONLY RECENTLY GOTTEN SERIOUS ATTENTION WHEN WE FIRST FILED THIS SUIT THERE WERE LOTS OF RAISED EYEBROWS HE SAID JOHN BREQUET ATTORNEY FOR THE RHODE ISLAND STATE AGENCY SAID HE HADN'T SEEN THE DECISION AND COULDN'T COMMENT THE APPEALS COURT REJECTED THE STATE AGENCY'S CLAIM THAT MS COOK WASN'T PROTECTED UNDER THE DISABILITIES LAW BECAUSE SHE COULD REDUCE HER WEIGHT WHICH AT THE TIME WAS 300 POUNDS THE COURT SAID OTHER CONDITIONS STEMMING FROM VOLUNTARY CONDUCT SUCH AS ALCOHOLISM ARE COVERED UNDER FEDERAL DISABILITIES LAWS THE COURT ALSO CITED EVIDENCE PRESENTED IN THE COOK CASE THAT SOCALLED MORBID OBESITY IN WHICH A PERSON WEIGHS MORE THAN TWICE THE RECOMMENDED WEIGHT FOR HIS OR HER HEIGHT STEMS FROM A PHYSICAL CONDITION THAT CONTINUES AFTER THE WEIGHT IS LOST THE RULING IS ONE OF THE FIRST BY A FEDERAL COURT TO ADDRESS DISCRIMINATION AGAINST PEOPLE WHO ARE PERCEIVED TO BE DISABLED BUT ARE FULLY CAPABLE OF DOING THE JOB THE COURT SAID FEDERAL DISABILITIES LAW PROTECTS NOT ONLY THOSE PERSONS WHO ARE IN FACT DISABLED BUT ALSO THOSE PERSONS WHO BEAR THE BRUNT OF DISCRIMINATION BECAUSE PROSPECTIVE EMPLOYERS VIEW THEM AS DISABLED THE RULING COULD MAKE IT EASIER FOR OTHER PEOPLE PERCEIVED AS DISABLED TO BRING DISCRIMINATION CLAIMS SAID LYNETTE LABINGER MS COOK'S ATTORNEY IN PROVIDENCE RI 9311230104 931123 WHO'S NEWS CLINTON NOMINATES MARY ELLEN WITHROW TO BE US TREASURER WASHINGTON PRESIDENT CLINTON NOMINATED MARY ELLEN WITHROW THE OHIO TREASURER TO BE TREASURER OF THE UNITED STATES MS WITHROW 63 YEARS OLD HAS SERVED AS PRESIDENT OF THE NATIONAL ASSOCIATION OF STATE TREASURERS AND THE NATIONAL ASSOCIATION OF STATE AUDITORS COMPTROLLERS AND TREASURERS SHE IS A MEMBER OF THE DEMOCRATIC NATIONAL COMMITTEE'S EXECUTIVE COMMITTEE THOUGH THE TREASURER IS A LARGELY CEREMONIAL ROLE MR CLINTON SAID SHE WILL PLAY AN IMPORTANT ROLE IN OUR EFFORTS TO CUT WASTE AND IMPROVE THE MANAGEMENT OF PUBLIC MONEY IN THE FEDERAL GOVERNMENT UNTIL SHE'S CONFIRMED BY THE SENATE THE GOVERNMENT HAS TO PRINT DOLLAR BILLS THAT ARE SIGNED BY THE LAST TREASURER AND TREASURY SECRETARY FROM THE BUSH ADMINISTRATION 9311230103 931123 PHONETEL GETS NASDAQ LISTING CLEVELAND PHONETEL TECHNOLOGIES INC SAID ITS COMMON STOCK HAS BEEN APPROVED FOR LISTING ON THE NASDAQ STOCK MARKET AND WILL BEGIN TRADING TOMORROW UNDER THE SYMBOL PNTL PHONETEL INSTALLS COMMERCIAL PRIVATEPAY TELEPHONES AND PROVIDES OPERATORASSISTED LONGDISTANCE SERVICES 9311230102 931123 PENSION PLANS' UNDERFUNDING WORSENED IN '92 GAP WIDENED BY 9 BILLION TO 3805 BILLION US SEEKS CHANGES IN LAW BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ALREADY SERIOUS PROBLEM OF UNDERFUNDING IN MANY EMPLOYERS' PENSION PLANS GREW SUBSTANTIALLY WORSE LAST YEAR THE PENSION BENEFIT GUARANTY CORP SAID TOTAL BENEFIT OBLIGATIONS OF THE 50 MOST UNDERFUNDED PRIVATE PENSION PLANS EXCEEDED THEIR ASSETS BY 3805 BILLION AT THE END OF 1992 AN INCREASE OF NEARLY 9 BILLION FROM A YEAR EARLIER THE AGENCY REPORTED IN ADDITION THE GAP BETWEEN THE FUNDS' ASSETS AND THE PBGC'S GUARANTEED PORTION OF THOSE OBLIGATIONS WIDENED BY 75 BILLION TO 317 BILLION IN 1992 IN 1991 THE GAP FOR THOSE PLANS EXPANDED BY ABOUT 3 BILLION THE NEW FIGURES UNDERSCORE THE NEED FOR PENSION FUNDING REFORMS AND PROVIDE ADDITIONAL EVIDENCE THAT CURRENT LAW IS NOT WORKING SAID PBGC EXECUTIVE DIRECTOR MARTIN SLATE UNDERFUNDED PLANS CAN BE A THREAT TO RETIREES' FUTURE PENSION BENEFITS AND THEY MAY REQUIRE A GOVERNMENT BAILOUT IF THE FINANCIAL WOES OF A COMPANY ARE SO BAD THAT THEY LEAD TO TERMINATING THE PENSION FUND THE PBGC EMPHASIZED THAT BEING ON THE TOP 50 LIST DOESN'T NECESSARILY MEAN THE COMPANY IS IN POOR FINANCIAL HEALTH OR THAT PENSION BENEFITS ARE IN IMMEDIATE JEOPARDY BUT IT ADDED THE RISK IS GREATER WHEN UNDERFUNDING OCCURS IN PLANS OF TROUBLED COMPANIES THE NATIONAL ASSOCIATION OF MANUFACTURERS REITERATED PAST COMPLAINTS ABOUT THE PBGC'S TOP50 LISTS CALLING THE LIST SENSATIONAL AND INEFFECTIVE THE PBGC THE GOVERNMENT AGENCY THAT INSURES MOST BENEFITS PROMISED BY DEFINEDBENEFIT PLANS ISSUED ITS LIST OF THE TOP 50 UNDERFUNDED PLANS BASED ON THE DOLLAR AMOUNT OF THE UNDERFUNDING THE AGENCY MAKES GOOD ON SUCH FUNDS' BENEFIT OBLIGATIONS IF A PENSION PLAN IS TERMINATED AND ITS ASSETS DON'T COVER PAYMENTS ADEQUATELY THE CLINTON ADMINISTRATION HAS BEEN PRESSURING EMPLOYERS WITH UNDERFUNDED PLANS TO NARROW THE FUNDING GAP AND HAS INTRODUCED LEGISLATION THAT IN SEVERAL WAYS WOULD FORCE COMPANIES TO REDUCE THEIR UNDERFUNDING MORE QUICKLY THAN REQUIRED BY CURRENT LAW LAST WEEK GENERAL MOTORS CORP SAID IT MAY PLOW 57 BILLION IN STOCK INTO ITS HUGE HOURLY WORKERS' PENSION FUND TO HELP NARROW THE PLAN'S UNDERFUNDING TOTAL GM WITH 2018 BILLION HAD THE LARGEST AMOUNT OF TOTAL UNDERFUNDING BUT WHEN THE UNDERFUNDING IS RANKED IN PERCENTAGE TERMS GM'S PLANS WERE 66 FUNDED PUTTING IT 19TH ON THE PBGC LIST THE FIGURE MEASURES ASSETS AS A PERCENTAGE OF BENEFIT LIABILITIES WITH THE LOWEST PERCENTAGE RANKING HIGHEST ON THIS LIST THE 1992 UNDERFUNDING RISE RESULTED MAINLY FROM A DECLINE IN INTEREST RATES WHICH BOOSTED LIABILITIES WHILE TRIMMING RETURNS ON ASSET INVESTMENTS BUT MANY COMPANIES' ACTUAL 1992 CONTRIBUTIONS TO THEIR PENSION FUNDS DIDN'T KEEP PACE WITH THE GROWING LIABILITIES DUE TO WEAKNESSES IN EXISTING PENSION LAW SAID THE PBGC'S MR SLATE MOST PENSION PLANS ARE HEALTHY BUT UNDERFUNDING IS A GROWING PROBLEM MR SLATE SAID GM'S UNFUNDED PENSION LIABILITY SOARED BY MORE THAN 8 BILLION FROM DEC 31 1991 BETHLEHEM STEEL CORP HAD THE SECONDLARGEST UNDERFUNDING 243 BILLION OR 58 FUNDING A YEAR EARLIER BETHLEHEM'S UNFUNDED LIABILITIES WERE 185 BILLION LTV CORP CHRYSLER CORP AND WESTINGHOUSE ELECTRIC CORP RANKED THIRD TO FIFTH RESPECTIVELY IN TOTAL UNDERFUNDING LTV AND THE PBGC RECENTLY REACHED AN AGREEMENT IN WHICH THE COMPANY WILL FUND ITS PENSIONS AGAIN AFTER EMERGING FROM BANKRUPTCYLAW PROCEEDINGS ITS UNDERFUNDING SHRANK TO 21 BILLION FROM 299 BILLION AT THE END OF 1991 CHRYSLER SLASHED ITS UNFUNDED LIABILITIES TO 136 BILLION FROM 402 BILLION WHILE WESTINGHOUSE'S UNDERFUNDING ROSE TO 127 BILLION FROM 724 MILLION JUST AS IT WAS A YEAR AGO THE LOWEST FUNDING RATIO WAS FOR RAVENSWOOD ALUMINUM CORP WITH 11 WHILE LTV WAS SECOND WITH 38 A RAVENSWOOD SPOKESMAN SAID AS HE DID LAST YEAR THAT THE COMPANY INHERITED A DEEPLY UNDERFUNDED PENSION PLAN WHEN IT BOUGHT ITS PLANT FROM KAISER ALUMINUM IN 1989 AND THAT LAGGING ALUMINUM BUSINESS HAS PREVENTED IT FROM REDUCING THE UNDERFUNDING 9311230101 931123 POLITICS & POLICY CLINTON PLANS TO RESUBMIT NOMINATION OF HALPERIN WASHINGTON PRESIDENT CLINTON INTENDS TO RESUBMIT NEXT YEAR THE CONTROVERSIAL NOMINATION OF MORTON HALPERIN TO BE AN ASSISTANT SECRETARY OF DEFENSE DESPITE A BITTER CONFIRMATION HEARING LAST WEEK MARK GEARAN THE WHITE HOUSE COMMUNICATIONS DIRECTOR SAID YESTERDAY THAT OUR PLANS ARE TO RESUBMIT HE'S QUALIFIED AND THE PRESIDENT THINKS HE SHOULD HAVE THE JOB HE WAS NOMINATED FOR THAT VIEW ISN'T SHARED BY REPUBLICANS ON THE SENATE ARMED SERVICES COMMITTEE AS WELL AS SOME CONSERVATIVE DEMOCRATS THE PANEL WHICH NEVER VOTED ON THE HALPERIN NOMINATION SENT IT BACK TO THE WHITE HOUSE MR HALPERIN WAS NOMINATED FOR ASSISTANT SECRETARY IN CHARGE OF PEACEKEEPING DEMOCRACY AND DRUGINTERDICTION POLICIES HE HAS BECOME THE TARGET FOR MUCH OF THE WRATH OF CONSERVATIVES WHO RAIL AGAINST THE ADMINISTRATION'S PARTICIPATION IN PEACEKEEPING OPERATIONS THESE CRITICS ATTACKED HIM FOR SOME OF HIS EARLIER WRITINGS AND AT THE HEARINGS MR HALPERIN APOLOGIZED FOR SOME CONTROVERSIAL STATEMENTS INCLUDING HIS ASSERTION THAT THE CENTRAL INTELLIGENCE AGENCY'S CLANDESTINE OPERATIONS SHOULD BE ABOLISHED 9311230100 931123 LAW LEGAL BEAT ROLLINS AFFAIR SPURS MINIINDUSTRY FOR LAWYERS WITH SUITS INQUIRIES BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL IT MAY TURN OUT THAT THE ONLY PEOPLE GETTING WALKINGAROUND MONEY IN THE EDWARD ROLLINS AFFAIR ARE THE LAWYERS THOUGH THE FORMER CAMPAIGN MANAGER TO CHRISTINE TODD WHITMAN NEW JERSEY'S GOVERNORELECT HAS DENIED HIS EARLIER CLAIM THAT CAMPAIGN MONEY WAS SPENT TO SUPPRESS THE BLACK VOTE ON ELECTION DAY THE LEGAL MACHINERY CONTINUES TO WHIR AND TO DATE AT LEAST 17 LAWYERS HAVE FOUND A ROLE IN THE PANOPLY OF LAWSUITS AND INVESTIGATIONS TRIGGERED BY MR ROLLINS' STATEMENTS TOWARD THE END OF HIS 7 1/2HOUR DEPOSITION FRIDAY IN WASHINGTON DC MR ROLLINS WENT SO FAR AS TO APOLOGIZE IN FRONT OF THE ASSEMBLED LAWYERS WE'VE SPENT A DAY HERE AND A FORTUNE IS BEING SPENT ON ALL OF YOU HE SAID NOT THAT THE LAWYERS ARE COMPLAINING THERE IS PLENTY OF WORK FOR ALL NOT ONLY IS THERE THE LITIGATION THAT SPAWNED THE DEPOSITION AN ATTEMPT BY NEW JERSEY DEMOCRATS TO INVALIDATE THE GUBERNATORIAL ELECTION RESULTS BUT ALSO PARALLEL CRIMINAL INVESTIGATIONS AT BOTH THE STATE AND FEDERAL LEVEL LITIGATION ALSO IS BEING CONSIDERED BY THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE AND BY BLACK MINISTERS THE DEMOCRATS' LAWSUIT WHICH CHARACTERIZES A HOST OF ALLEGED CONSTITUTIONAL AND CIVIL RIGHTS LAW VIOLATIONS BY THE REPUBLICAN AS GROSS SPECTACULAR AND WHOLLY INDEFENSIBLE HAS PROCEEDED AT A BREATHTAKING PACE BY USUAL LITIGATION STANDARDS ANOTHER REPUBLICAN WEBSTER TODD JR WHO IS MS WHITMAN'S BROTHER AND ONETIME CAMPAIGN MANAGER WILL BE QUESTIONED UNDER OATH TOMORROW IN NEW JERSEY THE DEMOCRATS ARE FACING A NOV 29 DEADLINE FOR CERTIFYING THE NEW JERSEY GUBERNATORIAL RACE WHICH MS WHITMAN WON BY A MARGIN OF LESS THAN 28000 VOTES THE CHIEF SPEED DEMON FOR THE DEMOCRATS IS GERALD KROVATIN A PARTNER AND CRIMINAL DEFENSE LAWYER AT THE NEW JERSEY FIRM LOWENSTEIN SANDLER KOHL FISHER & BOYLAN MR KROVATIN THE HUSBAND OF NEW YORK TIMES COLUMNIST ANNA QUINDLEN DID THE BULK OF THE QUESTIONING OF MR ROLLINS FRIDAY NOMINALLY HEADING THE DEMOCRATS' TEAM THOUGH CURRENTLY HANDLING A TRIAL IN AN UNRELATED CASE IS MR KROVATIN'S PARTNER TED WELLS JR A NATIONALLY KNOWN WHITE COLLAR DEFENSE ATTORNEY DEFENDING MR ROLLINS IS MICHAEL CARVIN A PARTNER AT SHAW PITTMAN POTTS & TROWBRIDGE IN WASHINGTON DC MR CARVIN SERVED IN THE CIVIL RIGHTS DIVISION OF THE REAGAN JUSTICE DEPARTMENT AND ONCE DATED REPUBLICAN STRATEGIST MARY MATALIN A CLOSE FRIEND OF MR ROLLINS AND THE FIANCE OF JAMES CARVILLE WHO DIRECTED THE CAMPAIGN OF MS WHITMAN'S OPPONENT GOV JIM FLORIO MR CARVIN IS ALSO WORKING WITH BENJAMIN GINSBERG AN ELECTIONLAW SPECIALIST WHO SERVED AS COUNSEL FOR THE REPUBLICAN NATIONAL COMMITTEE FOR EIGHT YEARS AND HE HAS CONSULTED WITH PARTNER TOM HILL A WHITE COLLAR DEFENSE LAWYER AND FORMER ASSISTANT US ATTORNEY LAWYERS FOR THE STATE REPUBLICAN PARTY AND THE WHITMAN CAMPAIGN NOT SURPRISINGLY HAVE WORKED ONLY LOOSELY WITH MR ROLLINS NONETHELESS THESE LAWYERS SAY THAT EVEN IF MR ROLLINS ORIGINAL CLAIMS OF VOTE BUYING ARE TRUE THE DEMOCRATS CANNOT PROVE THAT THE ACTIONS AFFECTED THE OUTCOME OF THE ELECTION AS WOULD BE REQUIRED UNDER NEW JERSEY ELECTION LAW TO INVALIDATE THE RESULTS THERE IS NO WAY THEY CAN PROVE THAT CONTENDS ANDREW BERRY THE CHIEF LAWYER FOR THE WHITMAN CAMPAIGN WHO IS WORKING WITH SEVEN OTHERS AT THE NEWARK NJ FIRM MCCARTER & ENGLISH HOW CAN YOU EVER PROVE THAT SOMEONE DIDN'T VOTE FOR GOV FLORIO MR BERRY CONFERS AT EACH MORNING WITH THE CHIEF STATE REPUBLICAN PARTY ATTORNEY THEODORE GEISER A PARTNER AT CONNELL FOLEY & GEISER IN NEWARK WHO SUCESSFULLY DEFENDED FORMER LABOR SECRETARY RAYMOND DONOVAN ON FRAUD CHARGES IN THE MID1980S THE TWO LOCAL REPUBLICAN LAWYERS HAVE DIFFERED SLIGHTLY ON STRATEGY EARLY LAST WEEK THE STATE REPUBLICAN PARTY ASKED US DISTRICT COURT JUDGE DICKINSON DEBEVOISE TO DISMISS THE DEMOCRATIC LAWSUIT THE WHITMAN CAMPAIGN WHILE AGREEING IN PRINCIPLE ASKED AS A PRACTICAL MATTER ONLY TO HALT THE LAWSUIT UNTIL THE COMPLETION OF THE GOVERNMENT INVESTIGATIONS OUR OVERRIDING GOAL IS TO HAVE AN ABSOLUTELY COMPLETE PROMPT CONCLUSION TO THE MATTER SAYS MR BERRY HOW MUCH MONEY IS BEING SPENT ON ALL THIS LAWYERING LIKE THE FACTS OF THE ROLLINS MATTER THIS TOO IS MURKY SOME LAWYERS ARE CERTAINLY BEING PAID AND THOUGH NO ONE IS ADMITTING IT SOME MAY BE IN IT JUST TO SERVE THE PUBLIC INTEREST AND PERHAPS AS A SIDE BENEFIT GARNER A SHARE OF THE SPOTLIGHT ALBERTSON'S INC THE GROCERY CHAIN BASED IN BOISE IDAHO HAS AGREED TO PAY 295 MILLION FOR LOST WAGES AND EMOTIONAL DISTRESS IN A RACE AND SEXDISCRIMINATION CASE THE CASH PAYOUT SETTLES A MAY 1992 STATEWIDE CLASSACTION SUIT BROUGHT IN FEDERAL COURT IN SAN FRANCISCO BY SAPERSTEIN MAYEDA & GOLDSTEIN THE OAKLAND CALIF CIVIL RIGHTS FIRM THAT IS REWRITING THE BOOK ON SOCALLED TITLE VII SETTLEMENTS THE LAW FIRM WILL RECEIVE 45 MILLION FROM THE SETTLEMENT WHICH IS SUBJECT TO THE FORMALITY OF FEDERAL COURT APPROVAL THE AMOUNT COVERS PAST FEES AND THE FIRM'S MONITORING OF COMPLIANCE WITH THE SETTLEMENT ACCORD FOR THE NEXT FIVE YEARS ALBERTSON'S ALSO AGREED TO MODIFY ITS EMPLOYMENT PRACTICES TO ELIMINATE DISCRIMINATION AGAINST WOMEN AND HISPANICS MORE THAN 20000 CURRENT AND FORMER EMPLOYEES AT THE COMPANY'S 144 CALIFORNIA RETAIL OUTLETS WILL SHARE IN THE PAYOUT BASED ON A FORMULA THAT TAKES INTO ACCOUNT YEARS OF SERVICE MICHAEL REED A SPOKESMAN FOR ALBERTSON'S SAID THE COMPANY FELT VERY STRONGLY THAT WE HAD GOOD AND ADEQUATE DEFENSES TO THE CLAIMS THAT WERE RAISED HOWEVER MR REED SAID IT WAS IN OUR BUSINESS BEST INTEREST TO RESOLVE THESE ISSUES TO AVOID PROTRACTED LITIGATION AND THE ASSOCIATED COSTS AND FEES THE SUIT CONTENDED THAT BECAUSE OF THEIR SEX WOMEN AT THE STORES DIDN'T GET EQUAL PROMOTIONAL OPPORTUNITIES TRAINING OR DESIRABLE SHIFTS AND WERE TYPICALLY PLACED IN SEXSEGREGATED JOBS ALBERTSON'S IS THE NATION'S SIXTHLARGEST FOOD AND DRUG RETAILER OPERATING 655 STORES IN 19 WESTERN MIDWESTERN AND SOUTHERN STATES SEX DISCRIMINATION IS AN INDUSTRYWIDE PATTERN IN THE GROCERY BUSINESS SAID MARI MAYEDA A PARTNER AT THE SAPERSTEIN LAW FIRM PEOPLE KNOW FROM THEIR OWN EXPERIENCES THAT THERE ARE ALWAYS WOMEN AT THE CHECK STANDS AND THE PICTURES OF THE MANAGERS ON THE WALLS ARE ALL MEN BENJAMIN A HOLDEN IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9311230099 931115 CANADIAN 88 ENERGY ACQUISITION CALGARY ALBERTA CANADIAN 88 ENERGY CORP SAID IT HAS ACQUIRED NATURALGAS PROPERTIES IN THE THREE HILLS/GHOST PINE AREA OF CENTRAL ALBERTA FROM AN UNDISCLOSED VENDOR FOR 27 MILLION CANADIAN DOLLARS US21 MILLION INCLUDED IN THE PURCHASE ARE TWO MILLION CUBIC FEET A DAY OF GAS PRODUCTION PROVEN RESERVES OF 38 BILLION CUBIC FEET AND 103000 BARRELS OF LIQUIDS AS WELL AS UNDEVELOPED LANDS OF SIGNIFICANT VALUE TO THE COMPANY IT SAID 9311230098 931123 INTERNATIONAL TOKYO GAS OSAKA GAS SAY 6MONTH PROFITS ROSE SHARPLY ON SALES TOKYO JAPAN'S TWO LARGEST GAS UTILITIES TOKYO GAS CO AND OSAKA GAS CO REPORTED SHARP INCREASES IN UNCONSOLIDATED PROFITS FOR THE SIX MONTHS ENDED SEPT 30 DUE TO HIGHER SALES HELPED BY COOL WEATHER AND THE GROWING POPULARITY OF GAS AS A CLEAN ENERGY SOURCE TOKYO GAS AND OSAKA GAS SAW SALES VOLUME SOAR 108 AND 73 RESPECTIVELY FROM YEAREARLIER LEVELS OTHER JAPANESE ENERGY SUPPLIERS ARE SEEING SALES ERODE IN THE ECONOMIC RECESSION THE SIXMONTH PRETAX PROFIT AT TOKYO GAS MORE THAN TRIPLED TO 1442 BILLION YEN 1327 MILLION FROM 464 BILLION YEN AT OSAKA PRETAX PROFIT JUMPED 52 TO 1093 BILLION YEN FROM 72 BILLION YEN THE COMPANIES ALSO BENEFITED FROM THE YEN'S APPRECIATION AND LOWER CRUDE OIL PRICES WHICH SLASHED GAS IMPORT COSTS BOTH TOKYO AND OSAKA REVISED UPWARD THEIR PRETAX PROFIT FOR THE FISCAL YEAR ENDING MARCH 31 1994 THAT IS DESPITE A DOWNWARD REVISION IN SALES FIGURES RESULTING FROM THIS MONTH'S RATE CUT BY THE COMPANIES AND JAPAN'S 10 MAJOR ELECTRIC POWER FIRMS 9311230096 931123 THE ROLLINS CLOUD'S SILVER LINING BY JOHN H FUND IT'S BEEN TWO WEEKS SINCE ED ROLLINS A CONSULTANT TO NEW JERSEY'S REPUBLICAN GOVELECT CHRISTINE WHITMAN GAVE AMERICA'S POLITICAL COMMUNITY A BAD CASE OF INDIGESTION WITH HIS OFFHAND BREAKFAST REMARKS THAT HE SPENT 500000 IN STREET MONEY TO DISCOURAGE BLACK MINISTERS AND DEMOCRATIC WORKERS FROM GETTING VOTERS TO THE POLLS BUT AMID ALL THE PARTISAN OUTRAGE ON ONE SIDE AND THE DENIALS ON THE OTHER SOME KEY POINTS HAVE BEEN IGNORED BECAUSE VOTER TURNOUT IN THE LARGEST NEW JERSEY CITIES WENT UP NOT DOWN ON ELECTION DAY IT IS HIGHLY UNLIKELY THAT THERE WAS A COORDINATED GOP SCHEME TO SUPPRESS VOTING IF THERE WERE ANY ROGUE OPERATIONS THE INVESTIGATIONS NOW UNDER WAY WILL PROBABLY UNCOVER THEM INTERESTINGLY AS L'AFFAIRE ROLLINS WINDS DOWN WITH A WHIMPER SAVVY DEMOCRATS ARE URGING THEIR PARTY TO DROP THE SUBJECT IT'S TIME TO PUT THIS BEHIND US AND GIVE CHRISTIE WHITMAN A CHANCE TO MOVE THE STATE FORWARD SAYS SHARPE JAMES NEWARK'S BLACK DEMOCRATIC MAYOR OTHER DEMOCRATS WORRY THAT A SERIOUS PROBE INTO URBAN VOTING PRACTICES MIGHT PERMANENTLY DAMAGE DEMOCRATIC CITY MACHINES WHILE MR ROLLINS HAS CERTAINLY ADDED TO AN ALREADY DANGEROUS LEVEL OF VOTER CYNICISM THE SPOTLIGHT HIS REMARKS HAVE SHONE ON SELDOMDISCUSSED ELECTORAL PRACTICES COULD ALSO GENERATE NEEDED SUPPORT FOR THEIR REFORM LAST WEEK MR ROLLINS TESTIFIED UNDER OATH THAT HIS CLAIMS TO HAVE PAID BLACK MINISTERS NOT TO ENDORSE NEW JERSEY GOV JAMES FLORIO FROM THE PULPIT WERE PART OF AN ELABORATE HEAD GAME TO PSYCH OUT HIS LONGTIME RIVAL JAMES CARVILLE A STRATEGIST FOR PRESIDENT CLINTON AND MR FLORIO NEW JERSEY SEN BILL BRADLEY SAYS POLITICS HAS DEGENERATED TO A POINT THAT YOU CAN GET THIS KIND OF ONEUPMANSHIPS WITH POLITICAL CONSULTANTS BUT HE WANTS A PROBE TO CONTINUE WHILE IT PROCEEDS THE REST OF US CAN PONDER SOME LESSONS OF THE ROLLINS FLAP THERE IS A DIFFERENCE BETWEEN GETOUTTHEVOTE EFFORTS AND DISCOURAGING PEOPLE FROM VOTING WHILE STREET MONEY PROGRAMS CAN BECOME VEHICLES FOR PAYING PEOPLE TO VOTE IN THEORY THEY ARE SIMILAR TO A BASKETBALL COACH ENCOURAGING A TEAM TO SHOOT MORE BASKETS BUT FANS WOULD LOOK ASKANCE AT A COACH WHO TRIED TO INDUCE OPPOSING PLAYERS NOT TO SHOW UP FOR THE GAME VOTER SUPPRESSION ISN'T UNKNOWN IN POLITICS BUT IT'S RARE IN 1960 TEXAS DEMOCRATS DELIVERED TOO FEW VOTING MACHINES TO GOP AREAS SOME REPUBLICANS COULDN'T WAIT IN LINE AND LEFT IN 1981 THE GOP INTIMIDATED VOTERS WHEN THEY HIRED OFFDUTY POLICE OFFICERS TO PATROL AGAINST FRAUD AT NEW JERSEY POLLING PLACES BUT THE UNDERTHETABLE DEALS WITH DEMOCRATS THAT ED ROLLINS DESCRIBED STRIKE SEASONED OBSERVERS AS IMPLAUSIBLE THE IDEA YOU WIN A RACE BY STRIKING DEALS WITH ADVERSARIES WHO CAN TURN YOU IN IS LUDICROUS SAYS RON FAUCHEUX EDITOR OF CAMPAIGNS & ELECTIONS MAGAZINE AND A FORMER LOUISIANA DEMOCRATIC LEGISLATOR MR FLORIO LOST IN NEW JERSEY BECAUSE ALTHOUGH THE TURNOUT IN CITIES WENT UP HE WON A SMALLER PERCENTAGE OF URBAN VOTES THE BERGEN RECORD THE MAIN NEWSPAPER IN NEW JERSEY'S LARGEST COUNTY FOUND THAT TURNOUT IN THE STATE'S FIVE LARGEST CITIES WENT UP 1 OVER THE LAST GUBERNATORIAL ELECTION BUT VOTER REGISTRATION IN THOSE CITIES WAS DOWN 11 FROM 1989 SO THE CITIES CAST FEWER VOTES OVERALL IN JERSEY CITY REGISTRATION FELL BY 9 BUT TURNOUT IN THE BLACK BERGENLAFAYETTE WARD WAS UP 4 HUDSON COUNTY EXECUTIVE ROBERT JANISZEWSI A DEMOCRAT REPORTS HE HAD NO DIFFICULTY HIRING 1500 ELECTION DAY WORKERS TO RING DOORBELLS MAN SOUND TRUCKS AND DRIVE VOTERS TO THE POLLS WHAT WAS DIFFERENT WAS THAT MRS WHITMAN DID WELL FOR A REPUBLICAN IN THE CITIES IN 1989 MR FLORIO WON 92 IN BERGENLAFAYETTE THIS YEAR HE TOOK ONLY 78 STATEWIDE EXIT POLLS REPORT MRS WHITMAN WON 25 OF BLACK VOTERS JERSEY CITY MAYOR BRET SCHUNDLER A REPUBLICAN WHO WON LAST MAY WITH 40 OF THE BLACK VOTE ISN'T SURPRISED I KNOW AFRICANAMERICANS WHO LIKED HER SUPPORT FOR SCHOOL CHOICE THEY ALSO KNEW UNEMPLOYMENT IN THIS AREA WENT FROM 7 TO 15 UNDER FLORIO ESSEX COUNTY DEMOCRATIC CHAIRMAN THOMAS GIBLIN SAYS THE FLORIO CAMPAIGN DIDN'T AGGRESSIVELY REGISTER VOTERS HE NOTES THAT TURNOUT IN NEWARK ROSE TO 46 FROM 43 BUT THAT REGISTRATION DROPPED TO ONLY 90000 FROM 107000 IN 1989 HE SAYS THAT CONTINUING TO QUESTION MR ROLLINS ABOUT VOTER SUPPRESSION IS LIKE BEATING A DEAD HORSE INDEED STEVE DEMICCO FORMER EXECUTIVE DIRECTOR OF NEW JERSEY'S DEMOCRATIC STATE COMMITTEE THINKS MRS WHITMAN'S ENERGETIC RESPONSE TO THE ROLLINS CRISIS MAY HELP HER BUILD TIES TO BLACK VOTERS THIS IS AN OPPORTUNITY THAT WAS CREATED FOR HER AND IT'S ONE SHE HAS SEIZED AND TURNED TO HER OWN ADVANTAGE MR FLORIO'S OPERATIVES DIDN'T UNDERSTAND THE CITIES MAYOR JAMES OF NEWARK TOLD THE NEW YORK TIMES THAT THE FLORIO FORCES USED INEXPERIENCED OUTOFTOWNERS WHO SIMPLY DID NOT CONNECT WITH THE LOCAL CONSTITUENCY MR FLORIO DIDN'T CAMPAIGN IN MANY CITIES SIGNALING THAT HE WAS TAKING THE BLACK VOTE FOR GRANTED MRS WHITMAN IN CONTRAST TOURED PUBLIC HOUSING PROJECTS WITH MAYOR SCHUNDLER AND FORMER HOUSING SECRETARY JACK KEMP FURTHER PUBLIC ATTENTION ON STREET MONEY WILL LEAD TO CALLS FOR ITS REFORM WHICH WOULD MOSTLY HURT DEMOCRATS CHARLES COOK A POLITICAL ANALYST WHO ONCE WORKED FOR THE DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE SAYS DEMOCRATS NATIONALLY WOULD RATHER THE ED ROLLINS DISCUSSION GO AWAY ENTIRELY AS A COMPLETE LOOK AT THE EXISTENCE AND USE OF STREET MONEY WOULDN'T BE WELCOME MR COOK SAYS A CLINTON CAMPAIGN OFFICIAL BOASTED TO HIM THAT IN 1992 THE DEMOCRATS SPENT 900000 IN STREET MONEY IN NEW JERSEY ALONE HE SAID THEY NEEDED SO MANY SMALL BILLS THAT IT TOOK THEM THREE DAYS TO GET IT FROM THE BANKS MR COOK SAYS HE THEN TOLD HOW OFFDUTY POLICE OFFICERS DELIVERED THE CASH PERHAPS HIS DEMOCRATIC FRIEND WAS TELLING A ROLLINS BUT MAYBE NOT MR COOK ESTIMATES THAT FOR EVERY 1 THE GOP SPENDS IN CASH TO BRING OUT VOTERS THE DEMOCRATS SPEND 6 TO 8 I CAN'T BELIEVE HOW SANCTIMONIOUS SOME DEMOCRATS ARE ABOUT ROLLINS'S COMMENTS HE SAYS KEN CORNELL A NEW JERSEY NATIVE WHO SPENT MANY YEARS AS A DEMOCRATIC COMMITTEEMAN IN PENNSYLVANIA SAYS THAT DEMOCRATS WHO ARE DEMANDING THAT EVERY URBAN ROCK BE TURNED OVER IN PROBING THE ROLLINS CLAIMS DON'T REALIZE THAT IF YOU REGULATE STREET MONEY YOU TAKE AWAY THE LIFEBLOOD OF THE DEMOCRATIC PARTY HE SAYS ANY LOOK AT BLACK CHURCHES WILL FIND THAT SOME MINISTERS OPENLY URGE THEIR CONGREGATIONS TO VOTE A CERTAIN WAY A VIOLATION OF IRS RULES ROLLINS WOULD HAVE DONE SOMETHING WRONG IN PAYING THE MINISTERS BUT HE WOULD HAVE BEEN SIMPLY PAYING THEM TO OBEY THE LAW BY NOT ABUSING THEIR NONPROFIT STATUS HE SAYS POLITICAL REFORM IS NEEDED BUT IT'S ERSTWHILE REFORMERS WHO ARE BLOCKING SOME OF THE MOST NEEDED CHANGES ALREADY NEW JERSEY'S GOP ASSEMBLY SPEAKER CHUCK HAYTAIAN HAS PROPOSED A BILL TO OUTLAW THE USE OF CASH FOR STREET MONEY ALL PAYMENTS TO INDIVIDUALS WOULD HAVE TO BE BY CHECK THE BERGEN RECORD REPORTS THAT DEMOCRATIC LEGISLATORS ARE CALLING HIS PROPOSAL RASH MR CORNELL THE FORMER DEMOCRATIC COMMITTEEMAN SAYS URBAN DEMOCRATS ARE VERY CONCERNED ABOUT REFORMS LIKE THAT INDEED EARLIER THIS YEAR THE US SENATE'S CAMPAIGN REFORM PROPOSAL WOULD HAVE BARRED CANDIDATES FROM RAISING SOFT MONEY FOR OUTSIDE GROUPS THAT REGISTER VOTERS IT WAS PROMPTED BY FORMER KEATING FIVE SEN ALAN CRANSTON'S FUNNELING OF KEATING MONEY INTO QUESTIONABLE REGISTRATION GROUPS THE PROVISION WAS DROPPED BY HOUSE LEADERS AFTER THE CONGRESSIONAL BLACK CAUCUS DEFENDED THE GROWING USE OF SOFT MONEY REP MIKE SYNAR A LIBERAL DEMOCRAT FOUGHT THE HOUSE LEADERSHIP'S CAMPAIGN REFORM BILL BECAUSE IT DIDN'T DEAL HONESTLY WITH SOFT MONEY ON SUNDAY HIS EFFORT TO DEFEAT THE BILL FAILED 220 TO 207 MR FAUCHEUX THE EDITOR OF CAMPAIGNS & ELECTIONS MAGAZINE SAYS HE WELCOMES REFORM OF SOFT MONEY OUR CURRENT CAMPAIGN LAW PRETENDS TO BE REFORM BUT ISN'T IT BENEFITS INCUMBENTS AND RICH CANDIDATES VIOLATES FREE SPEECH AND OPENS UP LOOPHOLES AND INEQUITIES THAT MAKE A MOCKERY OF THE PROCESS MR FAUCHEUX WANTS TO DEREGULATE CAMPAIGN FINANCE LAW AND INSTEAD HAVE FULL PUBLIC DISCLOSURE OF EVERY PENNY THAT GOES INTO A CAMPAIGN AND EVERY PENNY THAT COMES OUT IT'S APPROPRIATE THAT A PROBE INTO MR ROLLINS'S COMMENTS CONTINUE DESPITE HIS SWORN DENIALS BUT THE PUBLIC POLICY DEBATE WOULD BE IMPROVED IF THE INQUIRY WERE BROADENED TO ALSO LOOK AT STREET MONEY AND ABSENTEE BALLOT MANIPULATION SEE RELATED ARTICLE REVIEW & OUTLOOK EDITORIAL PHILLY OUTVOTES JERSEY WSJ NOV 23 1993 IT WOULD BE IRONIC IF IN BREAKING THE CODE OF SILENCE THAT GOVERNS THE DISCUSSION OF AMERICA'S SEAMIER POLITICAL PRACTICES ED ROLLINS ENDS UP BEING AN INADVERTENT CATALYST FOR SOME GENUINE POLITICAL REFORMS MR FUND IS AN EDITORIAL WRITER FOR THE JOURNAL 9311230095 931123 CORRECTIONS & AMPLIFICATIONS JUDGE CARL B STOKES WHO WAS MAYOR OF CLEVELAND FROM 1967 TO 1971 SAYS 9304 HOUSING UNITS WERE BUILT UNDER HIS ADMINISTRATION MORE THAN UNDER ANY OTHER CLEVELAND ADMINISTRATION TO DATE A PAGEONE ARTICLE OCT 11 STATED THAT MORE NEW HOUSING HAS BEEN BUILT DURING THE CURRENT CLEVELAND ADMINISTRATION THAN AT ANY TIME SINCE THE 1950S SEARS ROEBUCK & CO'S CHIEF EXECUTIVE OFFICER HASN'T BEEN OUSTED AS WAS INCORRECTLY STATED IN AN ARTICLE YESTERDAY LISTING SEVERAL CORPORATE TARGETS OF SHAREHOLDER ACTIVISM SEE CALPERS TO LINK CHIEF'S PAY TO BOTTOM LINE WSJ NOV GENSTAR CONTAINER CORP A UNIT OF GENERAL ELECTRIC CO DIDN'T TAKE PART IN THE BIDDING FOR TIPHOOK PLC'S CONTAINER DIVISION AN ARTICLE YESTERDAY ERRONEOUSLY SAID GENSTAR DID BID FOR THE CONTAINER DIVISION 9311230094 931123 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED NOV 19 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 CARPINTERIA COUNTY WATER DISTRICT WILL REDEEM ON DEC 16 1993 THE FOLLOWING 1978 WATER REVENUE BONDS 600 DUE 1994 1995 AND 1996 610 DUE 1997 620 DUE 1998 630 DUE 1999 AND 2000 640 DUE 2001 2002 AND 2003 BANK OF AMERICA IS SUCCESSOR FISCAL AGENT MISSOURI HOUSING DEVELOPMENT COMMISSION WILL REDEEM ON DEC 15 1993 1100000 PRINCIPAL AMOUNT OF ITS 6375 GENERAL MORTGAGE PURCHASE BONDS FEDERALLY INSURED MORTGAGES SERIES JUNE 15 1976 DUE DEC 15 2007 MERCANTILE BANK OF ST LOUIS IS TRUSTEE MONTECITO COUNTY WILL REDEEM ON DEC 16 1993 THE FOLLOWING WATER DISTRICT 1978 WATER REVENUE BONDS 59 DUE OCT 1 1994 1995 1996 AND 1997 AND 60 DUE OCT 1 1998 1999 2000 2001 2002 AND 2003 FIRST TRUST OF CALIFORNIA IS SUCCESSOR FISCAL AGENT NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY WILL REDEEM ON DEC 23 1993 THE FOLLOWING MEMORIAL GENERAL HOSPITAL ISSUE REVENUE BONDS SERIES A 680 DUE JULY 1 1994 685 DUE JULY 1 1995 690 DUE JULY 1 1996 AND 710 DUE JULY 1 2010 THE AUTHORITY WILL ALSO REDEEM ITS 980 MEMORIAL GENERAL HOSPITAL ISSUE REVENUE BONDS SERIES B DUE JULY 1 2014 UNITED COUNTIES TRUST COMPANY IS TRUSTEE SUMMERLAND COUNTY WILL REDEEM ON DEC 16 1993 ITS 675 WATER DISTRICT 1978 WATER REVENUE BONDS DUE OCT 1 1996 1997 1998 1999 2000 2001 2002 AND 2003 FIRST TRUST OF CALIFORNIA IS SUCCESSOR FISCAL AGENT 9311230093 931123 WHO'S NEWS LOBLAW UNIT'S NICHOL TO LEAVE POST TO START CONSULTING COMPANY TORONTO LOBLAW COS SAID DAVID NICHOL WILL STEP DOWN AT THE END OF THE YEAR AS PRESIDENT OF LOBLAW INTERNATIONAL MERCHANTS A LOBLAW SUBSIDIARY MR NICHOL 53 YEARS OLD IS WELLKNOWN IN THE FOOD INDUSTRY AS THE PIONEER OF THE FOOD COMPANY'S SUCCESSFUL LINE OF PRESIDENT'S CHOICE PRIVATELABEL PRODUCTS HE SAID HE IS LEAVING LOBLAW TO SET UP HIS OWN CONSULTING FIRM THE RETAILERCONTROLLED BRAND BUSINESS IS EXPLODING IN NORTH AMERICA AND AROUND THE WORLD ALL SORTS OF MANUFACTURERS AND RETAILERS NEED HELP TO CAPTURE THAT OPPORTUNITY MR NICHOL SAID MR NICHOL WILL REMAIN A DIRECTOR OF LOBLAW COS AND WILL CONTINUE TO SELECT PRODUCTS FOR THE PRESIDENT'S CHOICE LINE AND SERVE AS THE MAIN SPOKESMAN FOR THE PRIVATELABEL BRANDS HE ALSO WILL CONTINUE TO WORK WITH LOBLAW'S MAJOR CLIENTS ON THE PRESIDENT'S CHOICE LABEL INCLUDING WALMART STORES INC IN THE US AND COLES MYERS IN AUSTRALIA 9311230092 931123 FOREIGN EXCHANGE DOLLAR RETREATS AGAINST MARK AS DATA COOL HOPES FOR GERMAN RATE EASING BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SLIPPED AGAINST THE MARK YESTERDAY AS A GREATERTHANEXPECTED RISE IN GERMANY'S MONEY SUPPLY THREW SOME COLD WATER ON HOPES FOR A QUICK CUT IN GERMAN INTEREST RATES THE MONEYSUPPLY NEWS ALSO HELPED LIFT THE MARK AGAINST THE YEN THE POUND AND THE LIRA WHICH RECEIVED AN ADDITIONAL BLOW FROM WEEKEND MUNICIPAL ELECTIONS THAT ADDED TO ITALY'S POLITICAL WOES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17038 MARKS DOWN FROM 17146 MARKS LATE FRIDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 10843 YEN DOWN SLIGHTLY FROM 10845 ON FRIDAY THE POUND WAS AT 14755 UP FROM 14730 DEALERS SAID YESTERDAY'S MAIN NEWS WAS A REPORT SHOWING THAT GERMANY'S CLOSELY WATCHED M3 MEASURE OF MONEY SUPPLY ROSE AT AN ANNUALIZED RATE OF 68 IN THE FIRST 10 MONTHS OF THE YEAR A BIT FASTER THAN MOST ECONOMISTS HAD EXPECTED THE REPORT DISAPPOINTED MANY TRADERS WHO WERE LOOKING FOR THE DEUTSCHE BUNDESBANK GERMANY'S CENTRAL BANK TO LOWER ITS OFFICIAL INTEREST RATES BEFORE THE END OF THE YEAR AND IT TRIGGERED SLOW BUT STEADY BUYING OF MARKS THROUGHOUT THE DAY DEALERS NOTED THAT THE 68 RISE IS STILL OUTSIDE THE GERMAN CENTRAL BANK'S TARGET BAND OF 45 TO 65 MONEYSUPPLY GROWTH FOR 1993 AND WITH CONTINUING STRONG GROWTH IN THE M3 FIGURE WHICH THE BUNDESBANK USES AS ITS BEST INDICATOR OF FUTURE INFLATION PRESSURES MANY PLAYERS THINK IT'S UNLIKELY THAT THE CENTRAL BANK WILL LOWER RATES BEFORE THE END OF THE YEAR THE M3 NUMBER IS WHAT STARTED THE MARK HIGHER SAID BILL BERTHA VICE PRESIDENT AND CHIEF DEALER AT MELLON BANK NA IN PITTSBURGH BUT ALSO UNDERMINING THE DOLLAR MR BERTHA AND OTHER TRADERS ADDED WAS ITS INABILITY TO PUSH THROUGH A KEY TECHNICAL POINT AT 172 MARKS LAST WEEK WHICH HAD CONVINCED SOME PLAYERS THAT IT WAS TIME TO TAKE PROFITS ON THE DOLLAR'S RECENT RISE BUT DOLLAR BULLS WERE CHEERED THAT A QUICK DIP FOR THE DOLLAR BELOW 170 MARKS AROUND MIDDAY IN NEW YORK WAS MET WITH FAIRLY ACTIVE BUYING INTEREST BOOSTING THE CURRENCY LATE IN THE DAY AND THAT LATE REBOUND ALSO HELPED CONVINCE PLAYERS THAT THE DOLLAR'S SLIDE WAS MORE A SHORTTERM CONSOLIDATION THAN A TURN IN THE LONGERTERM TREND TOWARD A STRONGER DOLLAR MEANWHILE THE DOLLAR HELD STEADY AGAINST THE YEN IN A TECHNICALLY DRIVEN SESSION SWINGING IN A NARROW RANGE TRADERS REPORTED THAT WITH JAPANESE EXPORTERS STILL KEEN TO SELL WHEN THE DOLLAR REACHES 10880 YEN AND US FUNDS READY TO BUY AT ABOUT 10820 YEN THE DOLLAR SEEMS STUCK FOR THE MOMENT BUT TRADERS ADDED THAT BECAUSE LAST WEEKEND'S SUMMIT OF ASIANPACIFIC ECONOMIC LEADERS DIDN'T PRODUCE ANY FRESH US COMMENTS ON THE YEN THE DOLLAR COULD BE SET TO RISE AS THE CHANCES OF FURTHER US CALLS FOR A STRONGER YEN DIMINISH MR BERTHA ADDED THAT THE MAIN ACTIVITY ON THE YEN CENTERED ON THE MARKYEN CROSS TRADE WITH THE GERMAN MONEYSUPPLY NEWS PUSHING THE MARK THROUGH A KEY TECHNICAL POINT AT 6350 YEN LATE IN NEW YORK THE MARK TRADED AT 6364 YEN UP FROM 6325 YEN LATE FRIDAY THE MARK'S STRENGTH AGAINST THE YEN AND THE DOLLAR ALSO HELPED IT TO GAIN BROADLY IN EUROPE ESPECIALLY AGAINST THE ITALIAN LIRA WHICH WAS HURT AFTER CENTRIST PARTIES TOOK A BEATING IN MUNICIPAL ELECTIONS THE CHRISTIAN DEMOCRATS AND THE SOCIALISTS WHO HAVE DOMINATED ITALIAN POLITICS FOR 45 YEARS LOST HEAVILY IN SIX MAJOR CITIES TO CANDIDATES FROM THE LEFT AND RIGHT AND THE SEPARATIST NORTHERN LEAGUE TRADERS NOTED THAT ALTHOUGH THE MORE MAINSTREAM PARTIES HAD BEEN EXPECTED TO DO POORLY IN THE VOTE BECAUSE OF THEIR INVOLVEMENT IN THE CORRUPTION SCANDALS THE EXTENT OF THE POLARIZATION CAME AS A SHOCK THE SHOCK WAS ESPECIALLY STRONG AMONG FOREIGN INVESTORS WHO ARE COUNTING ON POLITICAL LEADERS TO TAKE DETERMINED ACTION ON CUTTING ITALY'S BUDGET DEFICIT AND PRIVATIZING SOME STATE ENTERPRISES BUT TRADERS NOTED THAT THE MARK'S RISE RAN INTO FAIRLY STIFF RESISTANCE AROUND THE 990LIRA LEVEL AND THEY PREDICTED THAT LEVEL WOULD HOLD FOR THE NEXT FEW DAYS BUT SHOULD THE SELLOFF CONTINUE AND PUSH THE MARK ABOVE 1000 LIRE TRADERS WARNEDTHE ITALIAN CURRENCY COULD PLUMMET LATE IN NEW YORK THE MARK WAS QUOTED AT 98591 LIRE UP FROM 97671 LIRE FRIDAY 9311230091 931123 CASINGS FIRM IS TOUGH MEAT FOR DEAL WHIZ BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO A NOSTALGIC HUSH FELL OVER THE CROWDED ROOM IN US BANKRUPTCY COURT AS DONALD P KELLY RECOUNTED THE HIGH POINTS OF HIS 50YEAR CAREER GROWING UP ON THE SOUTH SIDE HERE AND BEGINNING AS A DATA PROCESSOR MR KELLY EMERGED TO BECOME ONE OF THE MOST PROMINENT CORPORATE TAKEOVER PLAYERS CAPPING HIS CAREER IN 1986 WITH THE LEVERAGED BUYOUT OF BEATRICE CO ALONGSIDE KOHLBERG KRAVIS ROBERTS & CO AT 82 BILLION IT WAS THEN THE BIGGEST BUYOUT EVER AND WOULD PERSONALLY BRING MR KELLY MORE THAN 150 MILLION IN PROFITS THAT WAS BUT ONE HE RECALLED FONDLY OF 11 SEPARATE TRANSACTIONS HE NEGOTIATED VALUED AT 1 BILLION OR MORE I'D LIKE TO GO BACK TO SOME OF THOSE THE 71YEAROLD DEALMAKER SAID WITH A SOFT CHUCKLE AFTER RECITING HIS IMPRESSIVE RESUME MR KELLY GOT DOWN TO GRUBBIER WORK TESTIFYING IN HIS EFFORT TO HANG ONTO A 2 MILLIONAYEAR CONTRACT HIS MANAGEMENT FIRM HOLDS TO RUN A SAUSAGECASINGS MAKER HE AND ASSOCIATES BOUGHT AND THEN STEERED INTO INSOLVENCY THE COMPANY ENVIRODYNE INDUSTRIES INC ACQUIRED IN A 1989 LEVERAGED BUYOUT BY MR KELLY AND SALOMON BROTHERS INC IS NOW OPERATING WITH PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE FAILURE OF THE 840 MILLION BUYOUT IS PAINFUL ENOUGH FOR MR KELLY SO ACCUSTOMED TO PROFITABLY BUYING AND SELLING COMPANIES AND BEING PRAISED FOR DOING SO BUT MORE TROUBLING TO HIM IS CRITICISM THAT HIS DEBTRESTRUCTURING PROPOSAL UNDER CONSIDERATION BY FEDERAL BANKRUPTCY JUDGE JOHN D SCHWARTZ IS SELFSERVING KEEPING HIM IN A LUCRATIVE MANAGEMENT POSITION WHILE FORCING LOSSES OF ABOUT 207 MILLION ON SOME CREDITORS YESTERDAY AN INVESTOR IN THE LBO ARTRA GROUP INC SUED MR KELLY AND SALOMON ACCUSING THEM OF FRAUD AND BREACH OF FIDUCIARY DUTY IN SETTING UP THE LBO I'VE ENJOYED MY CAREER MR KELLY SAID IN AN INTERVIEW I'M SORRY WE HAVE TO HAVE THIS ONE UNFORTUNATE SITUATION MR KELLY AND SALOMON THROUGH FEES AND OTHER PAYMENTS RECOUPED THEIR INITIAL COMBINED INVESTMENT OF ABOUT 40 MILLION IN ENVIRODYNE OTHER INVESTORS AND BANK AND JUNKBOND BORROWINGS FINANCED THE REST OF THE BUYOUT ON ONE LEVEL THE ENVIRODYNE MESS ILLUSTRATES HOW SPECULATIVE 1980S FINANCING PRACTICES DON'T PLAY SO WELL IN THE MORE CONSERVATIVE 1990S BUT IT ALSO RAISES QUESTIONS ABOUT THE ABILITIES OF MR KELLY TO MANAGE A STABLE COMPANY RATHER THAN BUY AND SELL ASSETS THE ONE LOW POINT IN HIS CAREER PRIOR TO THIS MR KELLY SAID IN THE INTERVIEW WAS IN 1980 WHEN HE HAD SOLD OFF ABOUT HALF THE COMPANY HE THEN HEADED ESMARK INC AND FACED THE PROSPECT OF MERELY MANAGING WHAT WAS LEFT WHAT AM I GOING TO DO NOW HE SAID HE WONDERED I GOT KIND OF BORED THE TEDIUM WAS BROKEN IN 1983 WHEN NORTON SIMON INC'S CHIEF EXECUTIVE OFFICER DAVID MAHONEY TRIED TO BUY THAT COMPANY SPARKING A BIDDING WAR THAT ESMARK WON THE FUN BEGAN AGAIN THE NEXT YEAR MR KELLY ENGINEERED THE 27 BILLION SALE OF ESMARK TO BEATRICE CO THAT LED TO ANOTHER ROUND OF BUYING AND SELLING I GUESS I'M A DEALER AND THAT'S THE WAY IT IS MR KELLY SAYS DOES HE PREFER BUYING OR SELLING I DON'T THINK THERE'S ANY DIFFERENCE DURING THE 1980S ENVIRODYNE ASSEMBLED A GROUP OF UNGLAMOROUS BUT PROFITABLE BUSINESSES THAT MAKE CASINGS FOR SAUSAGE HOT DOGS AND OTHER MEATS PLASTIC CONTAINERS FOR YOGURT COTTAGE CHEESE AND BABY WIPES AND PLASTIC CUTLERY AND STRAWS THE COMPANY EMPLOYS 4500 PEOPLE AND IS BASED IN OAK BROOK ILL ARTRA GROUP A NORTHFIELD ILL COMPANY THAT OWNED 268 OF ENVIRODYNE BEFORE THE LBO SAYS IT HIRED SALOMON TO HELP IT EITHER SELL THAT STAKE OR ACQUIRE THE COMPANY OUTRIGHT SALOMON DISCOURAGED AN ARTRALED BID ACCORDING TO ARTRA'S LAWSUIT FILED IN STATE COURT IN DUPAGE COUNTY ILL AND SECRETLY HELD TALKS WITH MR KELLY ABOUT BUYING ENVIRODYNE ARTRA LEARNED FROM MR KELLY OF HIS INTEREST ACCORDING TO THE SUIT AND WAS INVITED TO INVEST IN THE 40ASHARE ENVIRODYNE TAKEOVER PERSUADED TO TAKE ONLY 75 MILLION OUT OF ENVIRODYNE IN CASH ARTRA LEFT 1182 MILLION INVESTED IN NOTES AND STOCK OF A COMPANY FORMED FOR THE ACQUISITION ARTRA SAYS IT WAS DECEIVED ABOUT THE LBO'S PROSPECTS AND IN ADDITION TO THE 1362 MILLION IN COMPENSATORY DAMAGES SEEKS 4086 MILLION IN PUNITIVE DAMAGES IN HINDSIGHT HEAVING 100 MILLION A YEAR OF DEBTSERVICE COSTS ON TOP OF A COMPANY WITH ANNUAL SALES OF LESS THAN 600 MILLION DOESN'T SEEM SO SMART BUT SALOMON'S MERCHANTBANKING CHIEF MICHAEL ZIMMERMAN TALKED AT THE TIME OF USING THE ENVIRODYNE DEAL TO SHOWCASE THE FIRM'S BUDDING LBO EXPERTISE HE AND SALOMON WON'T COMMENT NOW MR KELLY WON'T COMMENT ON THE LITIGATION EVEN WITH ALL THAT DEBT THE KELLYSALOMON TEAM SET ENVIRODYNE ON A SPENDING SPREE CAPITAL INVESTMENTS WERE ROUGHLY DOUBLED TO 50 MILLION A YEAR MR KELLY AND TWO ASSOCIATES F EDWARD GUSTAFSON AND JS CORCORAN WERE PAID A COMBINED 2 MILLION A YEAR AND THEY BILLED THE COMPANY ANOTHER 2 MILLION FROM 1990 TO 1992 FOR THE USE OF A JET TO GET THEM AROUND BY LATE 1991 ENVIRODYNE WAS FACING A LIQUIDITY CRISIS SALOMON THE MAJORITY OWNER WASN'T WELL POSITIONED TO PUT IN MORE CASH BECAUSE IT HAD ITS OWN CRISIS A TREASURY SECURITIESTRADING SCANDAL THAT EVENTUALLY FORCED OUT THE FIRM'S TOP MANAGEMENT AND COST IT A 290 MILLION FINE SALOMON LIQUIDATED BILLIONS OF DOLLARS IN HOLDINGS DURING THAT PERIOD TO STRENGTHEN ITS OWN LIQUIDITY ENVIRODYNE WAS FORCED INTO BANKTRUPTCY COURT LAST JANUARY BY SOME CREDITORS IN FASHIONING A REORGANIZATION PLAN MR KELLY AND SALOMON HAVE SOUGHT RELEASES FROM ANY CLAIMS AGAINST THEM INVOLVING THE BUYOUT'S STRUCTURING SALOMON IN 1991 AGREED TO PAY NEARLY 30 MILLION TO SETTLE A LAWSUIT CLAIMING ITS ADVICE WAS BAD IN THE BUYOUT OF DRUGSTORE CHAIN REVCO DS INC A TRANSACTION THAT BROUGHT SALOMON ALMOST 40 MILLION IN FEES THE LATEST PLAN CONTAINS TWO ELEMENTS THAT STILL RANKLE SOME CREDITORS THE PLAN VALUES ENVIRODYNE AT 650 MILLION NEARLY 200 MILLION LESS THAN IN 1989 DESPITE A SUBSEQUENT SURGE IN THE STOCK MARKET AND DECLINE IN INTEREST RATES MR KELLY SAYS INTENSE PRICE COMPETITION IN THE CASINGS BUSINESS UNDERMINED PROFIT MARGINS AND MR KELLY'S TEAM WOULD BE ELIGIBLE FOR A 1 MILLIONAYEAR BONUS UNDER CERTAIN CONDITIONS STEVEN E GREENBAUM OPPOSING THE PLAN ON BEHALF OF SOME CREDITORS SAYS ANYONE WHO CLAIMS PROUDLY TO HAVE LOST 200 MILLION IN VALUE DOESN'T DESERVE A RAISE 9311230090 931123 WHO'S NEWS LEHMAN BROS MOVES CLOSER TO A SPINOFF BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO HAS MOVED ANOTHER STEP CLOSER TO SPINNING OFF ITS LEHMAN BROTHERS INC INVESTMENT BANKING UNIT AS A PUBLIC COMPANY RICHARD S FULD JR PRESIDENT OF LEHMAN WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER A POSITION THAT HAD BEEN VACANT THE MOVE SETTLES THE MANTLE OF LEHMAN MANAGEMENT ON MR FULD'S SHOULDERS CONFERS THE ENDORSEMENT OF THE AMERICAN EXPRESS BOARD AND MIGHT FACILITATE AN INITIAL PUBLIC OFFERING OF LEHMAN STOCK SOMETIME NEXT YEAR MR FULD REACHED AFTER A MEETING OF THE AMERICAN EXPRESS BOARD SAID HIS GOALS IN THE NEW POSITION INCLUDE TO CONTINUE TO STRENGTHEN OUR BALANCE SHEET IN PART THROUGH THE SALE OF NONCORE ASSETS AND TO MAINTAIN A CONSISTENT RECORD OF EARNINGS HE ADDED THAT BUILDING LEHMAN'S INTERNATIONAL BUSINESS SWAPS AND DERIVATIVES AND FOREIGN EXCHANGE DEPARTMENTS WERE PRIORITIES MR FULD IS A LEHMAN LIFER HAVING BEEN WITH THE FIRM SINCE HIS GRADUATION FROM THE UNIVERSITY OF COLORADO AT AGE 23 THE CEO POSITION HAD BEEN VACANT THE CHAIRMAN'S POST AT LEHMAN REMAINS UNFILLED WHILE AMERICAN EXPRESS DENIES THAT A PUBLIC OFFERING OF LEHMAN STOCK IS IMMINENT AMERICAN EXPRESS CHAIRMAN HARVEY GOLUB HAS SAID REPEATEDLY THAT THE COMPANY IS SEEKING TO BUILD LEHMAN BROTHERS' BALANCE SHEET SO IT CAN ATTAIN A SINGLEA OR INVESTMENT GRADE CREDIT RATING AT THAT POINT LEHMAN COULD BE SPUN OFF IN A MEMORANDUM TO LEHMAN EMPLOYEES MR GOLUB SAID MR FULD HAS ESSENTIALLY BEEN PERFORMING THE FUNCTIONS OF CEO FOR THE BETTER PART OF THIS YEAR THE APPOINTMENT FORMALIZES HIS ROLE AND MORE IMPORTANTLY REPRESENTS A STRONG EXPRESSION OF CONFIDENCE MR FULD'S SALARY IN THE NEW POSITION WASN'T DISCLOSED IN SEPTEMBER AN INTERNAL MEMO FROM MR FULD DISTRIBUTED TO ALL EMPLOYEES APPEARED TO MAKE AN INITIAL PUBLIC OFFERING ALL BUT CERTAIN SENIOR MANAGEMENT ABOUT 10 OF THE INVESTMENT BANK'S WORK FORCE OF 9000 WAS OFFERED SHARES IN A 60 MILLION PRIVATE PLACEMENT OF PHANTOM LEHMAN STOCK IN LIEU OF PART OF THEIR 1993 BONUS LEHMAN VALUES ITS PHANTOM SHARES AT 10 EACH AND WOULD CONVERT THEM 1FOR1 INTO REAL SHARES PROBABLY AT A HIGHER PRICE IF THE COMPANY GOES PUBLIC FOR ALL BUT THE HIGHEST EXECUTIVES THE PLAN IS VOLUNTARY BUT FOR MR FULD THE PHANTOM STOCK COMPENSATION IS MANDATORY AND BECAUSE IT DOESN'T VEST IMMEDIATELY IT BECOMES A GOLDEN HANDCUFF BUT THE CLOCK IS TICKING TO GO PUBLIC BEFORE THE INEVITABLE BUST OF WALL STREET'S UNDERWRITING BOOM ALREADY ALMOST THREE YEARS OLD LEHMAN HAS AT MOST A YEAR TO PROVE IT CAN FLY SOLO AGAIN AFTER BEING PART OF ANOTHER FIRM SINCE 1984 9311230089 931123 BUSINESS WORLD ONE ENTANGLING EDIBLE IN THE GATT FIGHT BY TIM W FERGUSON IN THE DEEP WATERS OF WORLD TRADE SWIMS THE TUNA CONTROVERSY OVER HOW THIS CREATURE IS CAUGHT FIGURED PERIPHERALLY IN THE BATTLE OVER RATIFYING NAFTA BUT THE ISSUE ALTHOUGH IT PITS MEXICO'S EMERGING FISHERIES INDUSTRY AGAINST US ENVIRONMENTAL LAW APPEARS DESTINED FOR HANDLING OUTSIDE THE NEW PACT ONE PLACE IT COULD END UP IS AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE REGIME OF INTERNATIONAL COMMERCE NOW AT THE POLITICAL FORE POSTNAFTA GATT HAS A WORLD OF WOES AS IT AWAITS A NEW CHARGE FROM THE GLOBE'S GOVERNMENTS THE TUNA TURMOIL IS ONE SMALL PART TUNA FROM MEXICAN BOATS THE LARGEST FLEET IN THIS CONTINENT'S WARM STRETCH OF THE PACIFIC OCEAN HAS NO PLACE IN THE US MARKET WHY IT'S CAUGHT ON DOLPHIN USING NETS THAT ENCIRCLE BOTH THE MAMMALS AND THE MATURE YELLOWFIN TUNA THAT SWIM UNDER THEM PUBLIC PRESSURE INSPIRED BY DISPUTED NOTIONS OF DOLPHIN DEPLETION BROUGHT ABOUT A BAN HOWEVER IN 1991 A UNIT OF GATT FOUND THIS BLOCKAGE OF TUNA IMPORTS INAPPROPRIATE THE MEXICANS ALLEGE AN ENVIRONMENTAL RUSE TO PROTECT US COMMERCIAL INTERESTS THE STARKIST UNIT OF HJ HEINZ GETS ITS SUPPLIES ELSEWHERE US LAW SAY THE MEXICANS UNSCIENTIFICALLY SINGLES OUT ONE FORM OF FISHING WHILE ALLOWING OTHERS WITH A HIGHER RATIO OF UNINTENDED KILLS FOR TWO YEARS WITH NAFTA IN THE WORKS MEXICO HASN'T SOUGHT A FINAL GATT RULING EVEN NOW SAYS SALVADOR DE LARA THE RESPONSIBLE MEXICAN EMBASSY OFFICIAL IN WASHINGTON HIS GOVERNMENT IS PURSUING SPECIAL TALKS AIMED AT DEFUSING THE DOLPHIN QUESTION THE MATTER REMAINS A BLOODY SHIRT FOR SOME GREEN GROUPS HOWEVER MEXICAN TUNA IS A REMINDER OF THE POWER OF GENEVABASED GATT THE CLOSEST MECHANISM TO FREE TRADE THE WORLD HAS FOUND CREATED AFTER WORLD WAR II GATT HAS LED TO SUCCESSIVE CUTS IN TAXES ON TRADE IT ALSO CURBS SOME NONTARIFF BARRIERS WHICH IS HOW THE US MARINE MAMMAL PROTECTION ACT RAN AFOUL ON THE DOLPHIN FRONT HARDCORE GREENS HAVE SEIZED ON THIS GATT RULING TO TRY TO STIR UP THE SORT OF ANIMUS THAT COALESCED AROUND NAFTA WASHINGTON WAITS TO SEE HOW MUCH OF A BLOC WILL FORM THIS TIME THE CURRENT ROUND OF GATT TALKS HAS STUMBLED ALONG SINCE THE REAGAN ADMINISTRATION INITIATED IT AND BARRING A BREAKTHROUGH NEEDS AN EXTENSION FROM CONGRESS BY DEC 15 ANY ACCORD ALSO WOULD NEED LEGISLATIVE APPROVAL ALTHOUGH GRASSROOTS PASSION ON GATT HAS BEEN CONFINED TO THE FRINGES IT CROPPED UP OCCASIONALLY IN THE FIGHT OVER NAFTA IN SOME RESPECTS THE WORLD COMPACT IS EVEN MORE RIPE FOR DEMAGOGUERY INDIA HAS FAR MORE CHEAP LABOR THAN MEXICO NOTES COLUMBIA UNIVERSITY ECONOMIST JAGDISH BHAGWATI BUT WHEN PEOPLE THINK OF INDIA THEY THINK OF DOCTORS OR MORE PEOPLE LIKE ME PROFESSORS IT DOESN'T TAKE MUCH TO SWAY POLITICIANS TO TAKE A NARROW VIEW OF TRADE THE FACT IS THAT GATT ITSELF HAS NEVER BEEN RATIFIED BY CONGRESS MOSTLY BECAUSE OF APPREHENSIONS OVER LOSS OF SOVEREIGNTY DESPITE THAT MOMENTUM FOR FREER TRADE SUSTAINED POSTWAR PRESIDENTS IN GAINING AUTHORITY TO PURSUE LOWER TARIFFS THE SOCALLED KENNEDY ROUND OF 1962 BEING THE CROWNING ACHIEVEMENT BUT SINCE THE AFLCIO MADE ITS HISTORIC SWITCH TO PROTECTIONISM IN 1968 THE ROAD HAS GOTTEN BUMPIER MULTILATERAL EASING OF TRADE HAS MET RESISTANCE FROM SOME DOMESTIC INDUSTRIES AS WELL AS THE CURRENT GENERATION OF UNIONISTS ENVIROS AND PROVINCIALS THE CAUSE HAS BEEN PROPELLED BY INTELLECTUALS WHO RECOGNIZED IT AS THE TICKET TO HIGHER LIVING STANDARDS NOW HOWEVER EVEN THAT ELITE CONSENSUS IS BREAKING DOWN AS SOME ADOPT FASHIONS SUCH AS MANAGED TRADE ON THE POPULAR LEVEL MEANWHILE WHAT MATTERS ARE FACTORIES MOVING AND DOLPHINS DYING TUNA FITS BOTH THOSE BILLS IT IS NO SMALL FRY WHEN IT COMES TO FEEDING THE MASSES EITHER THE PURSESEINE METHOD OF NETTING THE PACIFIC SCHOOLS OFF THE AMERICAS TOOK HOLD IN THE 1950S THE RESULTING BOUNTY HELPED TO MAKE CANNED TUNA A STAPLE OF THE AMERICAN DIET WITH PERCAPITA CONSUMPTION TRIPLING BETWEEN 1946 AND 1961 BY 1989 IT HAD NEARLY DOUBLED AGAIN THE CATCH ALSO HELPED SUSTAIN FOR A TIME AN AMERICAN CANNING INDUSTRY ALONG THE SOUTHERN CALIFORNIA COAST AND LATER IN PUERTO RICO MEXICO IN RECENT YEARS ESSENTIALLY REPLICATED THE US EXPERIENCE ACCORDING TO FELIPE CHARAT OF MEXICO'S QUASIOFFICIAL NATIONAL FISHERIES ASSOCIATION TUNA CONSUMPTION IN THAT NATION HAS INCREASED TO 135000 TONS A YEAR FROM 18000 IN 1980 THIS RETAIL MARKET OF ABOUT 300 MILLION A YEAR REFLECTS A COMPARATIVELY CHEAP SOURCE OF PROTEIN FOR THE MEXICAN DIET INDEED THE CHICKEN OF THE SEA BY INVESTING 450 MILLION IN ITS TUNA OPERATIONS INCLUDING CANNERIES OVER THE LAST DECADE ACCORDING TO MR CHARAT MEXICO ALSO AIMED TO BUILD EXPORT CAPACITY BUT NOW WITH ITS CATCH AND THAT OF VENEZUELA AND COLOMBIA BEING BARRED FROM MAJOR MARKETS THE PAYOFF FROM EXPLOITING THIS RICH NATURAL RESOURCE IS IMPERILED ABOUT 25000 JOBS CONNECTED WITH TUNA PRODUCTION MAY NOT ALL BE KEPT THAT SHOULD HAVE A FAMILIAR IF HAUNTING RING IN CALIFORNIA THERE THE 17000 POSITIONS THAT EXISTED IN TUNA CANNERIES 40 YEARS AGO ARE NEARLY ALL GONE WAGES BECAME UNCOMPETITIVE AND MORE RECENTLY SUPPLIES SHRANK THE SAN DIEGOBASED TUNA FLEET HAS ONLY A FEW BOATS FISHING THE CONTINENTAL WATERS BOTH US AND MEXICAN FISHERMEN SAY THEY'VE CUT DOLPHIN KILL RATES DRASTICALLY AND DON'T POSE A THREAT OF EXTINCTION BUT HAVE LOST OUT TO AN ENVIRONMENTAL FETISH GREEN GROUPS USING DIFFERENT NUMBERS CLAIM ENDANGERED SPECIES AND DON'T TRUST ANY USE OF THE PURSE NETS AT THE SAME TIME HOWEVER TUNA OUTPUT IN THE ASIAN PACIFIC AND INDIAN OCEANS FLOODED WORLD MARKETS THIS IS WHY TUNA REMAINS CHEAP IN US STORES TODAY DESPITE THE CURTAILING OF THE NEARBY PACIFIC OPERATIONS FISHING IN THOSE NEWLYDEVELOPED REGIONS HAS MOSTLY ESCAPED DOLPHIN OR OTHER BICATCH SNAGS IN PART BECAUSE IT ISN'T AS TIGHTLY MONITORED BUT MR CHARAT OF THE MEXICAN FISHERIES MAINTAINS THAT THE GREAT SUPPLY GAINS OF RECENT YEARS ARE NEAR AN END MEANING THAT TUNASALAD LOVERS FACE HIGHER PRICES IF AMERICA'S STRICTURES ON THE NEARBY CATCH ARE KEPT GATT IS ONE WAY FOR KNOCKING THOSE RULES OUT THOUGH THE MEXICANS HOPE TO RESTART BILATERAL TALKS WITH THE US IN THE NEW YEAR AS AN ALTERNATIVE TINY AS THE TUNA PORTION OF INTERNATIONAL TRADE MAY BE IT HAS ELEMENTS OF THE LARGER DRAMA A PATTERN OF JOB SHIFTS ALLEGATIONS OF ENVIRONMENTAL HARM THREATENED LOSS OF DOMINION AND POTENTIAL CONSUMER IMPACT NAFTA HAS SURVIVED BUT IT'S STILL A STORMY SEA 9311230088 931123 LEISURE & ARTS POET JAMES MERRILL RECALLS HIS EUROPEAN WANDERYEARS BY AMY GAMERMAN MORE THAN 40 YEARS AFTER HE STAGED HIS ESCAPE FROM COUNTRY FAMILY AND ALL THE RESTRICTIONS OF HOME JAMES MERRILL HAS COME BACK TO THE ROOST HE SITS IN THE UPPER EAST SIDE APARTMENT THAT ONCE BELONGED TO HIS GRANDMOTHER POURING OUT ORANGE PEKOE TEA AND RECALLING HIS YOUTH THIS DISTINGUISHED POET NOW 67 SPEAKS A LITTLE WISTFULLY ABOUT THE DIFFERENT PERSON HE USED TO BE THE WELLFIXED BUT PROFOUNDLY UNCERTAIN AMERICAN ABROAD HE HAS ELOQUENTLY EVOKED IN HIS NEW MEMOIR I WAS SO HEMMED IN BY PEOPLE'S EXPECTATIONS MANY OF THEM DEAR FRIENDS NOT MERELY FAMILY SAYS THIS SLIGHT MAN WITH THE FACE OF AN ANCIENT CHILD HIS VOICE IS THE RESONANT DRAWL OF AN AMERICAN ARISTOCRAT I WANTED A CHANCE TO BE SOMETHING THAT DIDN'T CONFORM TO THOSE EXPECTATIONS IN 1950 MR MERRILL MARKED HIS RETURN FROM TWO LIBERATING YEARS ABROAD IN THESE ROOMS WITH A HOMECOMING DINNER FIXED BY HIS GRANDMOTHER HE HAD LEFT HOME AS AN ANXIOUS YOUNG AESTHETE BEST KNOWN FOR BEING THE SON OF THE FOUNDER OF MERRILL LYNCH & CO HE RETURNED READY TO BEGIN THE BUSINESS OF AN ARTIST'S LIFE THE SCENE CAPTURED IN A DIFFERENT PERSON CASTS A 41YEAROLD SHADOW OVER THE ROOM'S PALE GREEN WALLS AND SOLID ANCESTRAL FURNITURE THAT YOUNG MAN IS NOW ONE OF AMERICA'S GREATEST LIVING POETS HIS 11 BOOKS OF POEMS HAVE WON EVERY HONOR SHORT OF A NOBEL PRIZE HIS MOST FAMOUS WORK IS THE 560PAGE THE CHANGING LIGHT AT SANDOVER A DANTESQUE EPIC IN WHICH THE SPIRITS OF EPHRAIM A GREEK JEW/BORN AD 8 WH AUDEN AND A HOST OF ANGELS AND BATLIKE SPRITES REVEAL THE SECRETS OF HEAVEN AND EARTH THAT BOOK WAS GHOSTWRITTEN THE POET LIKES TO SAY THROUGH THE MEDIUM OF HIS OUIJA BOARD BUT IN WRITING A DIFFERENT PERSON MR MERRILL HAD NO VOICES TO RELY ON BUT HIS OWN I WAS PUTTING A LOT OF MY FEELINGS DOWN DIRECTLY FOR THE FIRST TIME IN MY LIFE HE SAYS MY MEMORIES OF CHILDHOOD ARE VERY SCREENED I HAVE THIS MYTH I TELL MYSELF OF HAVING A VERY HAPPY CHILDHOOD BORN IN 1926 TO CHARLES MERRILL THE FOUNDER OF THE WORLD'S LARGEST BROKERAGE FIRM AND HIS SECOND WIFE HELLEN INGRAM THE YOUNG JAMES MERRILL DIVIDED HIS CHILDHOOD BETWEEN SOUTHAMPTON AND PALM BEACH FLA IN A MYTHIC TWIST THE GREENWICH VILLAGE TOWNHOUSE THAT WAS HIS FIRST HOME AND THE PLACE WHERE MY FIRST MEMORIES WERE GELLED WAS BLOWN TO BITS IN 1970 BY RADICAL WEATHERMEN IT WAS AN EERY ECHO OF THE BROKEN HOME HE HAD CREATED IN HIS POETRY HIS FAMILY HAD SPLIT OPEN LONG BEFORE MR MERRILL'S PARENTS DIVORCED JUST BEFORE HIS 12TH BIRTHDAY HE AND HIS MOTHER MOVED INTO AN APARTMENT JUST ABOVE THE ONE IN WHICH WE MET IN HIS MEMOIR HE RECALLS THE BRIEF BUT BITTER CUSTODY BATTLE WAGED BY HIS PARENTS REPLETE WITH TABLOID HEADLINES AND A BELOVED SERVANT TURNED SPY ONE OF HIS MOST CRYSTALLINE POEMS DAYS OF 1935 SPINS OUT THE STORY OF A BOY WHO DREAMS OF BEING RESCUED FROM HIS UNHAPPY HOME BY A PAIR OF BONNIE AND CLYDESTYLE KIDNAPPERS AFTER A STINT IN THE ARMY AND GRADUATION FROM AMHERST THE YOUNG MR MERRILL STILL LONGED FOR ESCAPE BOTH FROM THE ENORMOUS WEALTH HE POSSESSED WHETHER I LIKED IT OR NOT AND THE EXPECTATIONS OF HIS FAMILY JOINING THE FAMILY FIRM WAS NEVER AN OPTION FOR HIM I THINK MY FATHER MUST HAVE SEEN OVER THE YEARS HOW LITTLE INTEREST I WAS ABLE TO TAKE IN IT HE SAYS I DIDN'T UNDERSTAND MUCH WHAT HE WAS SAYING WHEN HE'D BE TALKING ABOUT DEALS AND MARGINS AND MARKETS AND WHATNOT IT WAS UTTERLY MEANINGLESS TO ME MR MERRILL'S POEMS WEREN'T MUCH MORE MEANINGFUL TO HIS FATHER BUT HE GAVE HIS SON'S ARTISTIC ASPIRATIONS HIS FULL IF NEVER WHOLLY COMPREHENDING APPROVAL THE POET WRITES AFTER THE PRESIDENT OF AMHERST ASSURED HIM OF ITS MERITS OTHER ASPECTS OF THEIR SON'S LIFE WERE MUCH HARDER FOR HIS PARENTS TO APPROVE ON DISCOVERING HIS AFFAIR WITH KIMON FRIAR A RESPECTED TRANSLATOR OF GREEK LITERATURE WHO WAS AT THE TIME A TEACHER AT AMHERST MERRILL SENIOR BRIEFLY CONTEMPLATED HAVING FRIAR MURDERED I THINK THE IDEA CROSSED HIS MIND AND WAS GONE 40 MINUTES LATER MR MERRILL SAYS LOOKING DISTRESSED BY THE NEARLY 50YEAROLD MEMORY BUT STILL HIS MOTHER WHO IS IN HER 90S AND LIVES IN ATLANTA STILL DISAPPROVES HER SHAME OVER HER SON'S HOMOSEXUALITY PERFUMES THE MEMOIR NO WONDER THE 24YEAROLD POET WAS IN HIS WORDS TENSE UNHAPPY ANXIOUS ABOUT ON WHAT TERMS WOULD HE EVEN BEGIN TO JUSTIFY HIS LIFE IT WAS AN ANXIETY THAT HAD CRIPPLED HIS POETRY THE BEST HE COULD PRODUCE HE NOW SAYS WAS A VISUAL VERBAL ARTIFACT THAT LOOKED LIKE A POEM IN 1950 HE STAGED HIS ESCAPE HE SAILED FOR EUROPE A WORLD WHERE MY NAME DIDN'T AUTOMATICALLY HAVE THAT KIND OF BIOGRAPHICAL RESONANCE IT IS THROUGH THE PRISM OF THAT TIME ABROAD THAT MR MERRILL FOCUSES HIS MEMOIR IN ROME THOMAS DETRE A PSYCHIATRIST JUST A FEW YEARS HIS SENIOR HELPED MR MERRILL FREE HIMSELF FROM THE FAMILY PIGEONHOLE SO DID A STRING OF LOVE AFFAIRS AND THE POET WRITES ELOQUENTLY OF THE HEALING POWER OF HIS CULTURAL ENCOUNTERS OF SEEING THE MOSAICS AT RAVENNA HEARING OPERA AFTER OPERA AND OF MEETINGS WITH ALICE TOKLAS AND AUDEN THESE WERE FIGURES THAT I WAS OFTEN VERY TONGUETIED IN FRONT OF HE SAYS I REMAINED TONGUETIED WITH AUDEN UNTIL AFTER HIS DEATH WHEN WE HAD THESE VERY EASY AND INTERESTING CONVERSATIONS WHEN MR MERRILL RETURNED TO AMERICA READY TO DEVOTE HIMSELF TO WRITING HE SOON REALIZED HE WOULD HAVE TO STAGE A SECOND ESCAPE THIS TIME FROM THE SOCIAL DISTRACTIONS OF MONEYED NEW YORK I FOUND AN OLD ENGAGEMENT BOOK FROM THE MID'50S THE THINGS WE DID EIGHT THINGS A DAY WELL YOU'D HAVE A DRINK WITH SOMEONE BEFORE LUNCH LUNCH WITH SOMEONE ELSE YOU'D GO TO A MOVIE YOU'D HAVE COCKTAILS THEATER IN THE EVENING HE HAD MET DAVID JACKSON THE WRITER WHO WOULD BECOME A LIFELONG COMPANION THE TWO FLED NEW YORK WE FELT WE NEEDED A PLACE THAT WAS SUFFICIENTLY BORING THAT WE DIDN'T HAVE MUCH CHOICE BUT TO SPEND OUR TIME WORKING HE SAYS THEY FOUND IT IN STONINGTON CONN A CHARMING NEW ENGLAND COASTAL TOWN ABOUT THREE HOURS FROM THE CITY THERE THEY RENTED ROOMS ABOVE A BARBER SHOP IN A HOUSE ON WATER STREET THE HOUSE HE NOW OWNS AND WHERE HE SPENDS PART OF THE YEAR WITH ITS SHABBY OCHER EXTERIOR DARK STAIRCASE AND TWO MODEST FLOORS IT SEEMS AN UNLIKELY HOME FOR A MERRILL SCION IN BETWEEN WORK ON THEIR NOVELS MR MERRILL WROTE THE SERAGLIO A BARELY DISGUISED ACCOUNT OF HIS FATHER'S EPIC WOMANIZING THE TWO BEGAN SPENDING THEIR EVENINGS AT THE OUIJA BOARD THAT HAD BEEN THE GIFT OF A SCHOOL FRIEND IT TOOK THE PLACE OF COMPANY MR MERRILL EXPLAINS THE OUIJA BOARD TURNED THE HOUSE IN STONINGTON INTO A SPIRITUAL SALON OF THE FIRST RANK VISITED BY THE GHOSTS OF OLD FRIENDS AND FAMILY INCLUDING MERRILL SENIOR WHO BECOMES THE SPIRITUAL REPRESENTATIVE OF A CALCUTTA MYSTIC HE DISMISSES AS A DAMN POOR ADMINISTRATOR AND ANGELS AND DEMONS OF EVERY DESCRIPTION MR MERRILL SAYS THAT THE TRANSCRIPTS OF THOSE EVENINGS ARE THE BEDROCK OF SANDOVER NO IT'S NOT MADE UP HE SAYS MILDLY THERE'S A VERY WONDERFUL SPEECH THAT AUDEN GIVES THAT I THINK I WROTE FOR HIM I COULDN'T WAIT FOR THE NEXT DAY'S SESSION SO I FOUND MYSELF WRITING IT BUT BY AND LARGE IT WAS ALL DICTATED AND THEN IT WAS CUT AND VERSIFIED DOES HE STILL TALK TO THE SPIRITS NOW AND THEN NOT VERY MUCH COURTESY CALLS HE LAUGHS HIS HOMEMADE OUIJA BOARD IS A RECTANGLE OF WHITE POSTER BOARD ON WHICH THE ALPHABET IS PENNED IN BLACK MARKER THAT'S NOT THE ORIGINAL ONE HE SAYS THE ORIGINAL IS JUST IN TATTERS FOR A READER OF MR MERRILL'S POEMS THE SENSE OF DEJA VU HERE IS DIZZYING THE RED DINING ROOM WITH THE DOMED TIN CEILING IS SAME ONE THAT IS THE BACKDROP FOR THE SEANCES IN SANDOVER THOSE BATLIKE SHAPES ON THE DEEPBLUE WALLPAPER AND CHINESE CARPET METAMORPHOSE INTO THE POEM'S BATLIKE SPIRITS THE HUGE MIRROR WITH THE HEAVY GILT FRAME IS THE SAME ONE USED BY AUDEN'S GHOST AND OTHERS TO LOOK IN ON THE SEANCES IT STRIKES ME THAT MR MERRILL HAS GONE FAR BEYOND ESCAPING THE BIOGRAPHICAL RESONANCE OF HIS NAME HE HAS MADE NEARLY EVERY BIOGRAPHICAL DETAIL FROM HIS PARENTAGE RIGHT DOWN TO HIS CARPET RESONATE WITH THE MEANING HE HAS CREATED FOR IT IN HIS WRITING THE POET SEEMS TO FIND THE THOUGHT COMFORTING YOU FEEL YES WELL I'VE USED THAT OTHERWISE THE GHOST OF A SMILE SLIPPING ACROSS HIS FACE IT WOULD BE A MATTER OF MERE INTERIOR DECORATING 9311230087 931123 TECHNOLOGY BILL IS INTRODUCED TO FOSTER TELECOMMUNICATION RIVALS WASHINGTON A BIPARTISAN GROUP OF HOUSE MEMBERS INTRODUCED LEGISLATION TO PROMOTE COMPETITION BETWEEN CABLE AND TELEPHONE COMPANIES THE BILL WOULD ALLOW CABLE COMPANIES TO PROVIDE TELEPHONE SERVICE EVEN IN STATES THAT PROHIBIT COMPETITION IN PROVIDING LOCAL TELEPHONE SERVICE TELEPHONE COMPANIES COULD PROVIDE VIDEO PROGRAMMING SERVICES THROUGH SEPARATE SUBSIDIARIES THOUGH THEY STILL COULDN'T BUY CABLE SYSTEMS WITHIN THEIR SERVICES AREAS THE LEGISLATION WAS INTRODUCED BY REPS EDWARD MARKEY D MASS JACK FIELDS R TEXAS RICK BOUCHER D VA AND MICHAEL OXLEY R OHIO THE HOUSE IS EXPECTED NEXT YEAR TO CONSIDER A VARIETY OF MEASURES THAT COULD CHANGE THE GROUND RULES FOR COMPETITION IN TELECOMMUNICATIONS REPS JOHN DINGELL D MICH AND JACK BROOKS D TEXAS HAVE BEEN TRYING TO HAMMER OUT A COMPROMISE THAT WOULD REMOVE A BROAD RANGE OF RESTRICTIONS ON TELEPHONE COMPANIES THE CLINTON ADMINISTRATION IS STUDYING THE SAME ISSUES AND MAY FILE LEGISLATION EARLY NEXT YEAR 9311230086 931123 LETTERS TO THE EDITOR TAX WON'T CURE ALCOHOL ABUSE I REFUTE THE SIMPLISTIC AND MISLEADING ARGUMENTS BY LINDLEY H CLARK JR IN HIS OCT 28 EDITORIAL PAGE COLUMN THE SIN TAX CLINTON OVERLOOKED MR CLARK ATTEMPTS TO LINK TAXES AND ALCOHOL ABUSE HIS ARGUMENTS BOTH GREATLY UNDERESTIMATE THE COMPLEXITY OF ALCOHOLISM AS A DISEASE AND THE ECONOMIC DEVASTATION THAT CAN BEFALL INDUSTRY AS THE RESULT OF OVERTAXATION MORE THAN 31000 JOBS WERE LOST IN THE BEER INDUSTRY AS A RESULT OF THE 1991 TAX HIKE THE BEER INDUSTRY HAS NO ARGUMENT WITH THE ASSERTION THAT THERE IS TOO MUCH ALCOHOL ABUSE IN THIS COUNTRY WHILE WE IN THE INDUSTRY ARE ENCOURAGED BY IMPROVING NATIONAL STATISTICS ON THE DECLINE OF ALCOHOL ABUSE UNDERAGE DRINKING AND DRUNK DRIVING WE ARE NOT CONTENT WITH THE STATUS QUO AND WE ARE WORKING HARD TO CHANGE IT BUT ALCOHOL ABUSE CANNOT REALISTICALLY BE CURED THROUGH TAXATION UNFORTUNATELY THOSE WHO ABUSE ALCOHOL WILL PAY ALMOST ANY PRICE DESPITE THE COSTS OF THE PRODUCT AND THE HARMFUL PHYSICAL AND EMOTIONAL IMPACT ON THEMSELVES AND OTHERS THE MOST EFFECTIVE WAY TO REACH ABUSERS IS THROUGH EDUCATION EFFECTIVE TREATMENT AND STRICT LAW ENFORCEMENT HIGHER BEER EXCISE TAXES WILL NOT PRODUCE THE STEADY SOURCE OF RELIABLE INCOME NEEDED FOR NEW FEDERAL INITIATIVES STUDY AFTER STUDY AND RECENT EXPERIENCE AT BOTH THE FEDERAL AND STATE LEVEL HAS SHOWN THAT HIGHER EXCISE TAX RATES LEAD TO LESS REVENUE FOR GOVERNMENT AND HIGHER TAXES JEOPARDIZE THE JOBS OF THOUSANDS OF WORKERS IN THE BEER INDUSTRY FOR THE SECOND TIME IN LESS THAN THREE YEARS WHEN ADMINISTRATION OFFICIALS FLOATED THE IDEA OF A TAX INCREASE ON DISTILLED SPIRITS ALONE THE NATIONAL COUNCIL ON ALCOHOLISM AND DRUG DEPENDENCE WATCHED IN AMAZEMENT AS THE DISTILLED SPIRITS COUNCIL OF AMERICA BROKE RANKS WITH THE WINE AND BEER PRODUCERS AND ADOPTED MANY OF OUR OWN ARGUMENTS IN FAVOR OF EQUALIZING THE EXCISE TAX RATE TO EXPLAIN WHY IT WAS UNFAIR TO SINGLE OUT THEIR PRODUCT BASED ON ALCOHOL VOLUME DISTILLED SPIRITS ALREADY ARE TAXED AT TWICE THE RATE OF BEER AND THREE TIMES THAT OF WINE RATHER THAN INCUR THE WRATH OF ANY PART OF AN INDUSTRY WHICH AS A WHOLE CONTRIBUTED MORE THAN HALF A MILLION DOLLARS TO PRESIDENT CLINTON AND THE DEMOCRATIC NATIONAL COMMITTEE THE ADMINISTRATION BACKED AWAY ENTIRELY EQUALIZATION OF THE TAX RATE ALONE WOULD RAISE 3 BILLION TO HELP FUND THE NATIONAL HEALTH SECURITY ACT ADJUSTING THE TAX RATE FOR INFLATION WOULD RAISE MANY BILLIONS MORE JUST AS COMPELLING ARE THE SAVINGS IN HUMAN LIFE AND INJURY THESE MEASURES COULD GENERATE NATIONAL COUNCIL ON ALCOHOLISM AND DRUG DEPENDENCE INC 9311230085 931119 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9311230084 931123 THIS INFORMATION SUPERHIGHWAY CARRIES SOME VERY SILLY DRIVERS BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONVERSATION ON THE INTERNET THE NATION'S INFORMATION SUPERHIGHWAY ISN'T ALWAYS WHAT YOU MIGHT CALL DIGNIFIED I HAD BILL MURRAY INSPECT MY HOUSE WHEN I PURCHASED IT OBVIOUSLY NOT THE MOVIE STAR BUT BILL MURRAY NONETHELESS I GREW UP DOWN THE STREET FROM EDDIE MURPHY NOT THE COMEDIAN I WORKED IN THE SAME COMPANY WITH CHRISTOPHER COLUMBUS NOT THE EXPLORER I KNEW JIMMY CARTER A CANADIAN ON THE INTERNET PEOPLE CONVERSE BY DISCUSSION FORUMS CALLED USENET PEOPLE POST AND THEN RESPOND TO MESSAGES ON ISSUES RANGING FROM BRAIN SURGERY CALLED BIONETNEUROSCIENCE TO FISHTANKS ALT AQUARIA CASCADES A KIND OF VERBAL CHAIN OF MESSAGES AND RESPONSES CAN DEVELOP ANYWHERE THEY'RE CALLED CASCADES BECAUSE OF THE FORM THEY TAKE ON THE SCREEN WHERE THEY LOOK LIKE STAIR STEPS ALTHOUGH THE INTERNET'S ACADEMICIANS AND SCIENTISTS SHOULD PROBABLY BE RESEARCHING SOMETHING INSTEAD OF CASCADING ROBERT HALL A GRADUATE STUDENT IN COMPUTER SCIENCE SAYS PEOPLE CASCADE JUST TO PASS THE TIME WHEN THEY'RE SITTING IN FRONT OF THEIR TERMINAL FOR EXAMPLE A USENET READER RECENTLY DESCRIBED A CARTOON IN THE NEW YORKER MAGAZINE ONE DOG USING A COMPUTER TELLS ANOTHER ON THE INTERNET NO ONE KNOWS YOU'RE A DOG A CASCADE BROKE OUT ON ALTTOYSHITECH NO ONE KNOWS YOU'RE A LINCOLN LOG ON ALTPETSHERPETOLOGY NO ONE KNOWS YOU'RE A FROG ON ALTFASHIONSHOES NO ONE KNOWS YOU'RE A CLOG THEN FINALLY ON ALTCASCADE EVERYBODY KNOWS YOU SHOULD GET BACK TO WORK CURRENTLY PEOPLE ARE FLOODING VARIOUS FORUMS WITH A CASCADE ABOUT STUPID SONG LYRICS CHRIS MEZZOLESTA A COMMERCIAL VOICEOVER ARTIST FROM MENTOR OHIO IS INVOLVED IN A FORUM CALLED RECMUSICDEMENTIA SOME CASCADERS BEGAN POSTING THE SONG LYRICS ARTICLES TO THAT GROUP MR MEZZOLESTA HAS WRITTEN SEVERAL MESSAGES IMPLORING PARTICIPANTS TO STOP CASCADING ABOUT LYRICS TO HIS NEWSGROUP WHICH IS SUPPOSED TO BE ABOUT HUMOROUS MUSIC TO LIGHTEN THE TONE OF HIS REQUESTS SAYS MR MEZZOLESTA HE CONCLUDED ONE PLEA NOT WITH THANK YOU BUT THANKY TWANKY RESPONDED A CASCADER HANKY PANKY CASCADED ANOTHER 9311230083 931123 RETAILING ACTION FIGURES BARBIES ARE EXPECTED TO FILL SANTA'S BAG BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL LAST YEAR A LOT OF KIDS WANTED SOMETHING LOVABLE FOR CHRISTMAS THIS YEAR MANY TOY MAKERS HOPE THEY WILL BE MORE INTERESTED IN CHARACTERS AND GAMES THAT CONJURE UP DESTRUCTION BARNEY THE PURPLE DINOSAUR WHILE NOT YET EXTINCT HAS PASSED HIS PRIME TROLLS THE COTTON CANDYHAIRED LINE OF DOLLS HAVE ALSO SEEN BETTER DAYS TAKING THEIR PLACES ON THE SHELVES ARE ACTION FIGURES THE MIGHTY MORPHIN POWER RANGERS XMEN AND GI JOE STREET FIGHTER II EACH SO THEIR LEGENDS SAY TRYING TO ESTABLISH PEACE ON EARTH THESE WARRIORS ALONG WITH HIGHTECH TALKING TOYS THE GRAPHICALLY VIOLENT MORTAL KOMBAT VIDEO GAME AND OLD STANDBYS LIKE BARBIE ARE THE PRODUCTS ON WHICH TOY SELLERS ARE PINNING THEIR HOPES THIS CHRISTMAS AFTER A TOUGH SUMMER TOY SALES STARTED TO PICK UP IN MIDSEPTEMBER AND GREW STRONGER BY HALLOWEEN SAYS JIM SILVER PUBLISHER OF TOY BOOK AN INDUSTRY PUBLICATION HE PREDICTS HOLIDAY TOY SALES WILL ONLY EQUAL THOSE OF LAST YEAR WHEN SALES WERE UP A SURPRISING 10 BUT JILL KRUTICK AN ANALYST FOR SALOMON BROTHERS SEES A JOLLY 10 TO 15 INCREASE IN SALES HER OPTIMISM IS BASED ON RISING MOMENTUM AND WIDE DISTRIBUTION OF DISCOUNT COUPONS BY TOY MAKERS IF MS KRUTICK IS RIGHT TOYS AND VIDEO GAMES WILL HAVE ONCE AGAIN ACHIEVED PEACEFUL COEXISTENCE AFTER YEARS WHEN HOT VIDEO OFFERINGS CUT INTO TOY SALES SALES OF VIDEO GAMES AND SYSTEMS SHOULD CLIMB 15 THIS YEAR SAYS BOB BOTCH PRESIDENT OF US GOLD A VIDEOGAME DESIGNING SUBSIDIARY OF CENTER GOLD LTD IN ENGLAND VIDEO GAMES POSTED A 33 SALES GAIN IN 1992 SHIPMENT DELAYS AND SLIGHTLY HIGHER PRICES FOR CARTRIDGES HAVE ALSO SLOWED THE PACE HE ADDS NEW GAMES ARE 5 TO 10 MORE EXPENSIVE THAN OLDER ONES PARTLY BECAUSE MANUFACTURERS HAVE ADDED COMPUTER MEMORY FOR HIGHER LEVELS OF PLAY WITH FEW EXCEPTIONS SUCH AS ACCLAIM ENTERTAINMENT INC'S MORTAL KOMBAT EXPECTED TO RUN UP 280 MILLION IN RETAIL SALES BY YEAREND MR BOTCH DESCRIBES SOFTWARE SALES AS GOOD BUT NOT GREAT THE SAME COULD BE SAID ABOUT BARNEY THE MAGENTA TV STAR CREATED BY LYONS GROUP INC OF ALLEN TEXAS AND LICENSED TO HASBRO INC THE BIGGEST TOY MAKER OVER THE LAST FOUR MONTHS BARNEY SALES HAVE GONE FROM GREAT TO GOOD REPORTS MR SILVER OF TOY BOOK A HIT LAST CHRISTMAS BARNEY REMAINED IN SHORT SUPPLY UNTIL MAY WHEN A FLOOD OF SHIPMENTS HIT THE STORES BARNEY MANIA HOWEVER SPAWNED A BARNEY BACKLASH IT USED TO BE YOU WANTED TO PUNCH YASSER ARAFAT AND HUG BARNEY JAY LENO QUIPPED ON THE TONIGHT SHOW WHO THOUGHT IT WOULD EVER BE THE OTHER WAY AROUND DESPITE THESE SENTIMENTS GARY JACOBSON A TOY ANALYST FOR KIDDER PEABODY INC FIGURES HASBRO WILL SELL NEARLY 150 MILLION OF BARNEY TOYS THIS YEAR SATURATION APPEARS TO BE NO THREAT TO ACTION FIGURES MOST OF WHICH ARE PAIRED WITH TV SHOWS PROVIDING FREE ADVERTISING THE MIGHTY MORPHIN POWER RANGERS A LINE OF WARRIORS FROM BANDAI OF AMERICA ARE ALREADY WIDELY SOUGHT AFTER THE STORY FIVE TEENAGERS ARE TRANSFORMED INTO JUMPSUITED RANGERS EMPOWERED BY THE SPIRITS OF ANCIENT DINOSAURS THEY TAKE ON EVIL RITA A MOON MAIDEN WHO DISPATCHES MONSTERS TO EARTH INCLUDING A GIANT PIG WHO AIMS TO EAT ALL THE FOOD ON THE PLANET BUT THERE'S A PROBLEM WITH THE POWER RANGERS THEY HAVE BECOME SUCCESSFUL SO FAST THAT RETAILERS HAVE BEEN CAUGHT UNAWARE AT TOYS R US INC THE POWER RANGERS LINE IS THE SECONDFASTEST SELLING IT WOULD BE FIRST IF ONLY WE COULD GET MORE OF IT SAYS ROGER GODDU EXECUTIVE VICE PRESIDENT OF MERCHANDISING THIRD BEST AT TOYS R US TOY BIZ INC'S XMEN A LINE OF ACTION FIGURES BASED ON A COMIC BOOK SERIES ABOUT MUTANT CRIMEFIGHTING HEROES CREATED BY MARVEL ENTERTAINMENT GROUP INC WHICH OWNS 46 OF TOY BIZ ANOTHER ACTION LINE THAT IS EXPECTED TO BE IN DEMAND IS LEWIS GALOOB TOYS INC'S BIKER MICE FROM MARS THREE RODENTS VINNIE MODO AND THROTTLE WHO COMMUTE FROM MARS TO QUIGLEY STADIUM IN CHICAGO ON CUSTOMIZED BIKES TO FIGHT PLUTARKIANS A STRAIN OF EVIL GREEN FISH THAT DISGUISE THEMSELVES AS CHICAGOANS ONE PROBLEM BIKER MICE WON'T ARRIVE IN STORES UNTIL MIDDECEMBER AND ARE EXPECTED TO BRING GALOOB ONLY 2 MILLION IN REVENUE THIS YEAR RETAILERS SAY THEY ALSO HOPE TO SELL A LOT OF TALKING TOYS AMONG THEM TOBY TERRIER FROM TIGER ELECTRONICS INC TV TEDDY FROM YES ENTERTAINMENT INC HASBRO'S TALKING BARNEY AND TYCO TOYS INC'S TALKING FAMILY DOLLHOUSE MATTEL INC'S LINE OF BARBIE DOLLS ESPECIALLY THE NEWISH WESTERN STAMPIN' BARBIE REMAINS SO DOMINANT AMONG GIRLS THAT OTHER TOY COMPANIES HAVE STOPPED TRYING TO COME UP WITH KNOCKOFFS IN THE LARGERDOLL CATEGORY LAURIE SMITH AN ANALYST FOR SEIDLER COS SEES LITTLE THAT'S EXCITING EXCEPT MATTEL'S SALLY SECRETS SALLY'S TENNIS SHOES HOLD A STAMP ROLLER AND STAMP PAD AND HER BELT BUCKLE DISPENSES STICKERS 9311230082 931123 THE SAME OLD SADDAM BY LAURIE MYLROIE IRAQ IS PURSUING A PECULIAR TWOTRACK FOREIGN POLICY THESE DAYS THE UNITED NATIONS' ECONOMIC SANCTIONS SUBJECT TO REVIEW EVERY 60 DAYS ARE HURTING BADLY THUS IRAQI DIPLOMATS ARE TASKED WITH GETTING THE SANCTIONS LIFTED AND UNPRECEDENTED STEPS ARE BEING TAKEN TO COMPLY WITH UN DEMANDS BUT JUST AS US POLICY MAKERS START TO WORRY HOW THEY WILL PERSUADE THE SECURITY COUNCIL TO MAINTAIN THEM BAGHDAD COMMITS SOME NEW OUTRAGE THAT ERASES WHATEVER GOODWILL THE DIPLOMATS MANAGED TO SECURE ON THURSDAY THE UN COMPLETED ITS LATEST REVIEW DECIDING TO KEEP THE SANCTIONS RENEWED TENSIONS ALONG THE IRAQIKUWAITI FRONTIER MEAN DEPUTY PRIME MINISTER TARIQ AZIZ WHO IS IN NEW YORK THIS WEEK IS UNLIKELY TO GET A FRIENDLY HEARING AT THE UN SADDAM HUSSEIN'S DOMESTIC PROBLEMS WHICH APPEAR TO BE INTENSIFYING WERE ALREADY EVIDENT LAST SUMMER FIRST WAS THE INCREASED FLOW OF DESERTERS TO THE NORTH WHERE THE OPPOSITION IRAQI NATIONAL CONGRESS HAS A GROWING PRESENCE AT ROUGHLY THE SAME TIME IN JULY AND AUGUST A NUMBER OF VERY PROMINENT SUNNI ARABS FROM TAKRIT AND MOSUL WERE ARRESTED IT IS UNCLEAR WHETHER THEY WERE ACTIVELY PLOTTING AGAINST THE REGIME OR WERE MERELY TOO OPEN IN EXPRESSING THEIR DISCONTENT IN ANY EVENT SADDAM HAD THEM EXECUTED LAST WEEK AMONG THOSE EXECUTED WERE THE SON AND NEPHEW OF THE LATE MAWLUD MUKHLIS MUKHLIS AN OTTOMAN OFFICER WHO JOINED THE ARAB REVOLT DURING WORLD WAR I UNDER TE LAWRENCE AND THE AMIR FAYSAL WAS A TAKRITI RESPONSIBLE FOR FACILITATING THE ENTRY OF TAKRITIS INTO IRAQ'S MILITARY COLLEGE DURING THE MONARCHY THEREBY PAVING THE WAY FOR THE EVENTUAL EMERGENCE OF SADDAM AND HIS CLAN THE KILLING OF SUCH MEN AS MUKHLIS'S SON AND NEPHEW IS NOT A LIGHT ACTION RAISING AS IT DOES THE PROSPECT OF REVENGE FOR FAMILY AND TRIBAL REASONS IF ANY FAMILIES RETAIN SUCH ABILITIES UNDER SADDAM'S TOTALITARIAN REGIME THEY ARE THE PROMINENT TAKRITIS WHOM SADDAM IS NOW BEGINNING TO MURDER OFF ADDITIONALLY IRAQ'S ECONOMIC SITUATION CONTINUES TO DETERIORATE WITH THE VALUE OF THE IRAQI CURRENCY DROPPING SADDAM RESPONDED EARLIER THIS MONTH BY ARRESTING THE GOVERNOR OF THE CENTRAL BANK AND HIS TOP AIDES THEN THERE ARE THE SANCTIONS UN RESOLUTION 687 THE FORMAL CEASEFIRE TO THE GULF WAR TIES IRAQ'S ABILITY TO SELL OIL ONLY TO ITS COMPLIANCE WITH THOSE PARAGRAPHS OF 687 RELATED TO DESTROYING IRAQ'S WEAPONS OF MASS DESTRUCTION THE IDEA WAS TO GIVE SADDAM OR WHOEVER MIGHT OVERTHROW HIM THE INCENTIVE TO COMPLY WITH WHAT WERE JUDGED THE MOST IMPORTANT ASPECTS OF THAT RESOLUTION IRAQ'S COMPLIANCE ON OTHER ISSUES SUCH AS RECOGNIZING THE KUWAITI BORDER OR EVEN KUWAIT'S INDEPENDENCE IS NOT LINKED TO THE SANCTIONS THUS IRAQ'S DETERIORATING DOMESTIC SITUATION HAS LED TO UNPRECEDENTED IRAQI EFFORTS TO COOPERATE WITH THE UN WEAPONS INSPECTORS A LARGE TEAM NUMBERING NEARLY 100 PEOPLE SPENT SEVERAL WEEKS IN IRAQ LAST MONTH THE UNUSUALLY OBTRUSIVE INSPECTION WENT OFF WITHOUT INCIDENT ANOTHER CONCILIATORY GESTURE WAS IRAQ'S RELEASE OF SOME OF THE WESTERN HOSTAGES IT SEIZED ON THE KUWAITI FRONTIER THREE SWEDES WERE LET GO IN SEPTEMBER WHILE THE ONE AMERICAN THE IRAQIS HELD WAS RELEASED ON NOV 15 JUST BEFORE THE SANCTION REVIEW YET EVEN AS BAGHDAD SEEMINGLY SEEKS TO COOPERATE IT INVARIABLY DOES SOMETHING ELSE THAT SUGGESTS THAT NOTHING HAS CHANGED LAST TUESDAY FOR EXAMPLE TWO DAYS BEFORE THE SANCTIONS REVIEW IRAQ STAGED A DEMONSTRATION IN WHICH SEVERAL HUNDRED CIVILIANS SOME ARMED CROSSED THE KUWAITI BORDER TO HOLD A PROTEST THEN ON WEDNESDAY AN EDITORIAL IN A MAJOR GOVERNMENT NEWSPAPER REAFFIRMED IRAQ'S AIM TO LIBERATE KUWAIT DESCRIBING THE KUWAITIS AS WORMS AND SNAKES AND ASSERTING IRAQ'S READINESS TO DEFEND ITSELF WITH A WALL OF BODIES AND SEA OF BLOOD THAT DID LITTLE TO PROMOTE IRAQ'S CASE AT THE UN THE NEXT DAY SOMEWHAT THE SAME PATTERN OCCURRED IN THE LAST SANCTIONS REVIEW TWO MONTHS AGO IN EARLY SEPTEMBER GEN AMIR RASHID HEAD OF IRAQ'S MILITARY INDUSTRY ORGANIZATION WENT TO NEW YORK FOR TECHNICAL TALKS AIMED AT FACILITATING THE LIFTING OF SANCTIONS WHILE HE WAS THERE BAGHDAD ANNOUNCED A CABINET SHIFT THREE OF THE NEW CABINET MEMBERS CAME FROM MILITARY INDUSTRIES WHICH ARE CLOSELY ASSOCIATED WITH IRAQ'S SECRET ARMS PROCUREMENT NETWORK MOST OUTRAGEOUSLY THE NEW OIL MINISTER SAFA JAWAD HABOOBI HAS BEEN INDICTED IN THE US FOR HIS INVOLVEMENT IN THE BNL BANKING SCANDAL AND IN BRITAIN FOR HIS INVOLVEMENT WITH MATRIXCHURCHILL A COMPANY PURCHASED BY IRAQ THAT SERVED AS A CRITICAL LINK IN ITS PROCUREMENT PROGRAM IT IS A MYSTERY WHY SADDAM WOULD APPOINT AS OIL MINISTER A MAN WHO CANNOT TRAVEL TO ANY COUNTRY WITH WHICH THE US OR BRITAIN HAS AN EXTRADITION TREATY PARTICULARLY WHEN BAGHDAD'S TOP DIPLOMATS ARE TRYING TO GET THE SANCTIONS LIFTED US OFFICIALS MAY WELL BE SATISFIED WITH THE PRESENT SITUATION SANCTIONS ARE HOLDING UP SADDAM IS GETTING WEAKER THEY MAY BELIEVE THAT IT IS UNNECESSARY FOR WASHINGTON TO DO MORE BUT THERE ARE TWO PROBLEMS WITH THIS STRATEGY FIRST THIS IS A BLOODY PROCESS THE MORE MURDEROUS ELEMENTS IN IRAQ ARE FINISHING OFF THE OTHERS IT IS NO LONGER A QUESTION OF SUNNIS KILLING KURDS AND SHIITES BUT HAS BECOME A MATTER OF INTRASUNNI STRIFE ISN'T THERE SOME OBLIGATION TO TRY TO BRING ABOUT SADDAM'S FALL IN THE SHORTEST TIME POSSIBLE IF ONLY TO MINIMIZE THE BLOODSHED SECOND DOES ANYONE REALLY EXPECT THAT SADDAM WILL REMAIN QUIET LETTING THE US STRANGLE HIM TO DEATH ECONOMICALLY THERE HAVE BEEN PERSISTENT REPORTS FROM OPPOSITION ELEMENTS IN NORTHERN IRAQ THAT BAGHDAD IS WORKING INTENSELY ON ITS BIOLOGICAL WEAPONS PROGRAM THE UN INSPECTORS HAVE UNCOVERED VIRTUALLY NOTHING OF THAT PROGRAM BIOLOGICAL AGENTS ARE WELLSUITED FOR USE IN TERRORISM CAN ANYONE GUARANTEE THAT SADDAM DOES NOT HAVE IN MIND SUCH A CAMPAIGN AIMED ABOVE ALL AT HIS ARCHNEMESIS THE US MS MYLROIE OF THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY SPENT THE SUMMER IN IRAQI KURDISTAN 9311230081 931123 YOUR MONEY MATTERS TO SKIRT RISK MORE TRY FLEXIBLE FUNDS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL CAUGHT BETWEEN TODAY'S LOW SHORTTERM YIELDS AND THE FEAR THAT RISING INTEREST RATES WILL ERODE THE VALUE OF HIGHERYIELDING LONGTERM BONDS A GROWING NUMBER OF INVESTORS ARE RUSHING INTO FLEXIBLE INCOME FUNDS THESE MUTUAL FUNDS WHICH SEEK TO PROVIDE HIGH YIELDS WITH LESS RISK THAN LONGTERM BOND FUNDS DIVERSIFY ASSETS AMONG US GOVERNMENT BONDS HIGHYIELD CORPORATE JUNK BONDS AND FOREIGN BONDS INDEED MOST FLEXIBLEFUND MANAGERS HAVE FEW CONSTRAINTS AND CAN INVEST IN DEBT ANYWHERE IN THE WORLD OPPENHEIMER STRATEGIC INCOME FUND ONE OF THE LARGEST OF THE FLEXIBLE FUNDS HAS THE BULK OF ITS FOREIGN HOLDINGS IN SUCH EMERGING MARKETS AS MEXICO VENEZUELA BRAZIL ARGENTINA INDONESIA AND THE CZECH REPUBLIC THE IDEA IS THAT BY INVESTING IN MARKETS THAT MOVE MORE OR LESS INDEPENDENTLY OF EACH OTHER FLEXIBLE FUNDS CAN REAP HIGH YIELDS WHILE AVOIDING HEAVY LOSSES SHOULD ONE MARKET GO SOUR OUR FUND EXPLOITS THE WEAK CORRELATION BETWEEN INTERESTRATE RISK CURRENCY RISK AND CREDIT RISK SAYS ARTHUR STEINMETZ MANAGER OF OPPENHEIMER STRATEGIC INCOME IT'S INVESTMENTS 101 BUT WHILE DIVERSIFICATION IS GENERALLY A GREAT IDEA A NUMBER OF MUTUALFUND ANALYSTS WORRY THAT MANY INVESTORS IN FLEXIBLE FUNDS DON'T UNDERSTAND THE RISKS IT'S HARD FOR INDIVIDUAL INVESTORS TO GET A CLEAR IDEA OF THE RISKS IN THESE FUNDS SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS INVESTORS ARE ADDING CURRENCY CREDIT AND EVEN POLITICAL RISKS TO THE SIMPLE INTERESTRATE RISK OF INVESTING IN A GOVERNMENT BOND FUND HE SAYS FLEXIBLE FUNDS ARE ONLY FOR THE MOST AGGRESSIVE INVESTORS WHO UNDERSTAND THE DIFFERENT MARKETS THESE FUNDS ARE INVESTED IN SAYS MR MARKESE SO FAR INVESTORS HAVEN'T HAD REASON TO BE NERVOUS BECAUSE FLEXIBLE FUNDS HAVE PERFORMED WELL SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO PUBLICATION THAT TRACKS FUND PERFORMANCE THE FUNDS HAVE BEEN FUELED BY STRONG RETURNS FROM THEIR THREE SECTORS JUNK BONDS INTERNATIONAL BONDS AND GOVERNMENT BONDS FOR THE 12 MONTHS THROUGH OCT 31 THE AVERAGE FLEXIBLEINCOME FUND HAS RETURNED 14 INCLUDING PRICE CHANGES AND DIVIDENDS BEATING OUT GENERAL GOVERNMENT FUNDS AND MORTGAGE FUNDS SAYS LIPPER ANALYTICAL SERVICES HIGHYIELD BOND FUNDS AND INTERNATIONAL BOND FUNDS SURPASSED THE FLEXIBLE FUNDS AND INVESTORS SEEM TO LOVE THEM TWENTYONE FLEXIBLEINCOME FUNDS THAT HAVE BEEN AROUND FOR AT LEAST A YEAR HAVE 72 BILLION IN ASSETS UP SHARPLY FROM 53 BILLION A YEAR AGO ACCORDING TO LIPPER ANALYTICAL THESE FUNDS HAVE GREAT APPEAL FOR THE STANDARD INCOMEORIENTED INVESTOR SAYS MICHAEL FREEDMAN PRESIDENT OF THE BLANCHARD GROUP OF FUNDS BLANCHARD FLEXIBLE INCOME FUND STARTED A YEAR AGO HAS RAISED 650 MILLION OPPENHEIMER STRATEGIC INCOME FUND A HAS AMASSED 25 BILLION UP FROM 17 BILLION A YEAR AGO STILL INVESTMENT PROS BEMOAN THE FUNDS' LACK OF A LONGTERM TRACK RECORD ONLY A FEW HAVE BEEN IN BUSINESS FOR FIVE YEARS THERE'S NOT MUCH EVIDENCE TO GO ON SAYS KEN GREGORY EDITOR OF NOLOAD MUTUAL FUND ANALYST AN ORINDA CALIF NEWSLETTER EVEN SOME FLEXIBLEFUND MANAGERS SAY THEIR FUNDS HAVEN'T PASSED THE ULTIMATE TEST OF A SUSTAINED RISE IN INTEREST RATES ALTHOUGH SOME RISKS OFFSET OTHERS A RISE IN INTEREST RATES TRANSCENDS ALL THE SECTORS OPPENHEIMER'S MR STEINMETZ SAYS SOME PROS SAY THE FUNDS ARE FLAWED BECAUSE TOP PERFORMANCE DEPENDS ON THE MANAGER'S SKILL AND IT'S FAR MORE DIFFICULT TO MANAGE A FLEXIBLE FUND THAN A SINGLEPURPOSE BOND FUND AMONG OTHER THINGS THE MANAGER MUST ANALYZE CREDIT QUALITY OF JUNK BONDS CURRENCY POLITICAL AND INTERESTRATE RISKS OF FOREIGN BONDS AND INTERESTRATE RISKS OF US GOVERNMENT BONDS SAYS WILLIAM JOHN MIKUS MANAGING DIRECTOR OF FINANCIAL DESIGN A LOS ANGELES INVESTMENT ADVISER VERY FEW MANAGERS ARE GOOD ENOUGH TO BE SUCCESSFUL IN THE ENTIRE UNIVERSE OF FIXEDINCOME SPECIALTIES SAYS MR MIKUS HE ALSO BELIEVES IT'S HARD TO QUANTIFY THE RISK IN A FLEXIBLE FUND FOR AN INVESTOR WHO IS TRYING TO DESIGN A BALANCED PORTFOLIO THE MANAGERS OF THESE FUNDS HAVE WIDE DISCRETION AND CAN SHIFT ASSET ALLOCATIONS ON A DIME THEY MAY BE MOSTLY IN SHORTTERM BONDS WHEN YOU BUY THE FUND THEN A WHILE LATER THEY MAY MOVE TO INTERMEDIATE AND LONGTERM BONDS MR MIKUS SAYS YOU REALLY NEVER KNOW WHERE THEY ARE OR WHAT YOUR RISK IS THOSE WHO WANT TO INVEST IN SUCH FUNDS SHOULD CHECK THE AVERAGE MATURITY OF THE FUND'S BOND HOLDINGS WHETHER IT HEDGES AGAINST CURRENCY RISK FOR ITS FOREIGN BONDS AND ITS OVERALL CREDIT QUALITY IF THE CREDIT RATING IS TOO LOW YOU MAY BE INVESTING IN A DIVERSIFIED JUNKBOND FUND PROS SAY MR MIKUS SAYS A TYPICAL FLEXIBLEFUND INVESTOR WOULD BE BETTER OFF BUYING A BALANCED MUTUALFUND PORTFOLIO OF 70 BOND FUNDS AND 30 STOCK FUNDS IF YOU DON'T NEED THE PRINCIPAL FOR FIVE YEARS IF YOU NEED THE MONEY IN THREE YEARS PUT 85 IN BOND FUNDS AND 15 IN STOCK FUNDS WHAT FUNDS HE SUGGESTS PUTTING 70 IN PIMCO LOW DURATION BOND FUND OR FOR HIGHTAX INVESTORS VANGUARD MUNICIPAL LIMITEDTERM BOND FUND SPREAD 25 OF THE CASH IN FOUR US STOCK FUNDS NEUBERGER & BERMAN GUARDIAN FUND TWENTIETH CENTURY ULTRA FUND ROYCE EQUITY INCOME FUND AND MERIDIAN FUND THESE HOLD A MIX OF SMALL AND LARGECOMPANY STOCKS IN GROWTH AND VALUE STYLES IF YOU WANT TO MAKE IT EVEN SIMPLER PUT THE 25 IN A STOCK INDEX FUND SUCH AS THE SCHWAB 1000 INDEX FUND OR THE VANGUARD 500 INDEX FUND HE SAYS THE REMAINDER WOULD BE INVESTED IN WARBURG PINCUS INTERNATIONAL FUND HE RECOMMENDS TOTAL RETURNS INCLUDING PRICE CHANGES AND DIVIDENDS FOR THE AVERAGE FLEXIBLEINCOME FUND COMPARED WITH OTHER BOND FUNDS FOR PERIODS ENDED OCT 31 9311230080 931123 END OF THE ROAD FIRING OF EXECUTIVE GIVES RARE GLIMPSE OF INTRIGUE INSIDE GE FIRM CALLS IN A PSYCHOLOGIST IN MIDST OF PALACE REVOLT CLAIM THAT WIFE MEDDLED THE WIMPS OF WORTHINGTON' BY WILLIAM M CARLEY AND AMAL KUMAR NAJ STAFF REPORTERS OF THE WALL STREET JOURNAL JOHN WELCH CHAIRMAN OF GENERAL ELECTRIC CO WAS GETTING ANGRY AS HE CHECKED UP ON PROBLEMS IN THE COMPANY'S INDUSTRIALDIAMOND BUSINESS HE WASN'T GETTING THE ANSWERS HE WANTED FROM ED RUSSELL THE VICE PRESIDENT IN CHARGE I WAS PROBING HIM QUESTIONING HIM QUESTIONING HIM AND HE WASN'T GIVING ME ANYTHING BUT AIR MR WELCH COMPLAINED IN A SUBSEQUENT COURT DEPOSITION AS HE AND OTHER GE EXECUTIVES BOMBARDED MR RUSSELL WITH QUESTIONS MR WELCH ADDED THE VICE PRESIDENT GAVE ONLY VAGUE ANSWERS 50000 FEET HIGH ALTITUDE DON'T WORRY JACK' TYPE OF THING THE DAY AFTER THAT SEPTEMBER 1991 MEETING MR WELCH FAXED A NOTE TO MR RUSSELL'S IMMEDIATE SUPERIOR BOTTOM LINE HE WROTE RUSSELL HAS TO GO THUS ENDED A SPARKLING EXECUTIVE CAREER AT GE A CAREER IN WHICH MR WELCH HAD ONCE TAKEN AN INTEREST BUT MR RUSSELL WHO WAS FIRED SHORTLY AFTER MR WELCH SENT HIS MEMO DIDN'T GO QUIETLY HE WENT TO THE FEDERAL BUREAU OF INVESTIGATION COMPLAINING THAT THE REAL REASON FOR HIS OUSTER WAS THAT HE HAD RUN ACROSS CORPORATE WRONGDOING INCLUDING A SCHEME TO FIX INDUSTRIALDIAMOND PRICES MR RUSSELL'S RIPOSTE AND THE FUROR THAT FOLLOWED SHOW HOW A FIRED EXECUTIVE CAN MAKE LIFE MISERABLE FOR HIS FORMER EMPLOYER ALTHOUGH GE VIGOROUSLY DENIES HIS ALLEGATIONS THEY HAVE LED TO WHAT ANTHONY NANNI A CHIEF LITIGATOR AT ONE OF THE JUSTICE DEPARTMENT'S ANTITRUST SECTIONS CALLS A VERY ACTIVE INVESTIGATION INTO ALLEGATIONS OF HARDCORE PRICE FIXING HOW MANY OF MR RUSSELL'S ALLEGATIONS THE DEPARTMENT IS PURSUING ISN'T CLEAR MR RUSSELL HAS ALSO FILED HIS OWN SUIT IN FEDERAL COURT IN CINCINNATI SET FOR TRIAL IN FEBRUARY WHILE MANY DOCUMENTS ARE SEALED THE SUIT HAS PRODUCED ENOUGH DEPOSITIONS INTERNAL GE MEMOS AND OTHER DOCUMENTS TO PIECE TOGETHER THE STORY OF THE DISINTEGRATION OF A HIGHLEVEL EXECUTIVE'S CAREER THE DOCUMENTS ALSO PROVIDE A WINDOW INTO THE MANAGEMENT TECHNIQUES OF ONE OF THE NATION'S MOST RENOWNED CORPORATE CHIEF EXECUTIVES ONCE DUBBED NEUTRON JACK FOR HIS SWIFTNESS IN CUTTING LAYERS FROM GE'S WORK FORCE IN THE 1980S MR WELCH LAST YEAR DREW ATTENTION FOR SPELLING OUT IN THE COMPANY'S ANNUAL REPORT HIS CRITERIA FOR PROMOTING OR FIRING EXECUTIVES BUT MR WELCH'S APPLICATION OF HIS STANDARDS HAS USUALLY BEEN PLAYED OUT BEHIND CLOSED DOORS NOT SO IN THE RUSSELL CASE WHEN HE JOINED GE IN 1974 EDWARD RUSSELL SEEMED TO HAVE ALL THE QUALITIES TO MAKE THE CUT AND HIS CAREER MOVED RAPIDLY WITH AN ENGINEERING DEGREE AND AN MBA HE WAS ASSIGNED TO STRATEGIC PLANNING IN CORPORATE HEADQUARTERS IN FAIRFIELD CONN TWO YEARS LATER HE WAS NAMED TO HEAD THE LIGHTINGPRODUCTS OPERATION IN MEXICO THEN MADE A MANAGER OF GE INTERNATIONAL LIGHTING IN 1985 MR RUSSELL BECAME GENERAL MANAGER OF GE SUPERABRASIVES WHICH MAKES SYNTHETIC DIAMONDS USED IN INDUSTRY TO CUT HARD MATERIALS GE INVENTED THE WAY TO MAKE SYNTHETIC DIAMONDS IN THE 1950S ITS ONLY MAJOR COMPETITOR HAS BEEN DE BEERS CONSOLIDATED MINES LTD WHICH MAKES SYNTHETIC DIAMONDS IN EUROPE AND MINES REAL ONES IN AFRICA HEADQUARTERED IN WORTHINGTON OHIO GE SUPERABRASIVES AT FIRST PROSPERED UNDER MR RUSSELL WITH THE ENERGETIC HANDSOME 6FOOT2INCH EXECUTIVE AT THE HELM SUPERABRASIVES SAW ITS PROFIT SHOOT TO 70 MILLION IN 1989 FROM 165 MILLION IN 1986 EARLY IN 1990 MR RUSSELL WAS NAMED A GE VICE PRESIDENT ONE OF ONLY 125 OFFICERS IN THE EMPIRE AT AGE 51 HE WAS MAKING 190000 A YEAR PLUS BENEFITS INCLUDING USE OF A JAGUAR I AM SO PLEASED FOR AND PROUD OF YOU MR WELCH WROTE TO MR RUSSELL AT THE TIME THIS IS A HARDEARNED WELLDESERVED PROMOTION BUT TROUBLE WAS BREWING WITH RECESSIONS STARTING AROUND THE WORLD GE SUPERABRASIVES' PROFIT DROPPED TO 57 MILLION IN 1990 AND THE UNIT HAD BEEN PLACED UNDER THE GE PLASTICS GROUP BASED IN PITTSFIELD MASS GE PLASTICS HEADED BY SENIOR VICE PRESIDENT GLEN HINER BEGAN TO PUT ITS OWN PEOPLE INTO THE DIAMOND UNIT THAT CREATED A CULTURE CLASH ACCORDING TO A MEMO MR RUSSELL LATER WROTE WHEN HE HEARD HE MIGHT BE FIRED THE MEN FROM GE PLASTICS HE WROTE LACK THE MIDAMERICA VALUES AND WORK ETHICS AND FOR THE MOST PART ARE HEAVYDRINKING WOMANIZERS EXPENSEACCOUNTS CHEATS THE POND SCUM OF AMERICAN INDUSTRY IN ANOTHER MOVE THAT BEGAN CAUSING PROBLEMS MR RUSSELL DIVORCED HIS WIFE AND BEGAN A RELATIONSHIP WITH A GE SUPERABRASIVES MARKETING STAFFER WHOM HE MARRIED IN 1988 THE NEW MRS RUSSELL ACCORDING TO A GE LEGAL BRIEF BEGAN TO MEDDLE IN THE MANAGEMENT OF THE DIAMOND UNIT CREATING RESENTMENT BY OTHERS THEY REFERRED TO HER AS NANCY REAGAN SAYS DENISE MAURER MR RUSSELL'S SECRETARY AT GE BUT MRS MAURER SAYS ACCUSATIONS THAT MR RUSSELL'S WIFE WAS MANAGING THE BUSINESS WERE GROSS EXAGGERATIONS IN AN INTERVIEW MR RUSSELL SAYS HIS WIFE LEFT GE SHORTLY AFTER THEY WERE MARRIED AND ALLEGATIONS THAT SHE INTERFERED IN THE DIAMOND BUSINESS BEFORE OR AFTER THAT ARE ABSOLUTELY RIDICULOUS MR RUSSELL'S WIFE SHIRLEY COSTANTINO CALLS GE'S CLAIMS GARBAGE WHILE GE SUPERABRASIVES PEOPLE WERE BICKERING AMONG THEMSELVES DE BEERS WAS OVERTAKING GE'S DIAMOND TECHNOLOGY ACCORDING TO PETER FOSS SUPERABRASIVES' MARKETING MANAGER WHO WAS PLACED IN THAT JOB BY GE PLASTICS BY HIS ACCOUNT THE PROBLEM WAS IN METALBONDING SAW DIAMONDS OR MBS THE HIGHEST QUALITY AND MOST PROFITABLE OF SYNTHETIC DIAMONDS THAT'S WHERE DE BEERS HAD TAKEN THE LEADERSHIP POSITION AWAY FROM US MR FOSS SAID IN A DEPOSITION OUR CUSTOMERS TOLD US WHEN I JOINED IN 1990 THAT WE HAD NOT BEEN LISTENING TO THEM WHEN THEY TOLD US IN THE '80S THAT WE NEEDED TO GET OUR TECHNOLOGY IN SHAPE AND TO IMPROVE OUR PRODUCT LINE FOR HIGHQUALITY MBS DIAMONDS MR FOSS ADDED DE BEERS HAD GRABBED MORE THAN 50 OF THE MARKET GE'S SHARE HE ESTIMATED WAS IN THE LOW 30S BY EARLY 1991 WITH GE DIAMOND PROFITS FALLING DE BEERS FORGING AHEAD AND DISCORD BUBBLING WITHIN GE SUPERABRASIVES BATTLES BROKE OUT BETWEEN MR RUSSELL AND STAFFERS PUT INTO HIS UNIT BY GE PLASTICS ONE STAFFER STEVE PALOVCHIK FINALLY GOT IN TOUCH WITH MR RUSSELL'S BOSS MR HINER THE GE PLASTICS CHIEF IN PITTSFIELD AND WE HAD A PRIVATE MEETING IN PITTSFIELD MR HINER SAID IN A DEPOSITION AT WHICH TIME MR PALOVCHIK DESCRIBED TO ME A BUSINESS IN DISARRAY AND IN WHAT I WOULD DESCRIBE AS A PALACE REVOLT THAT WAS UNDER WAY IN GE SUPERABRASIVES ALARMED MR HINER CALLED JACK PEIFFER GE SENIOR VICE PRESIDENT FOR HUMAN RESOURCES MR PEIFFER PHONED BRADFORD SMART A CHICAGO INDUSTRIAL PSYCHOLOGIST WHO HAD CONSULTED FOR GE BEFORE AS MR SMART IN A DEPOSITION RECOUNTED THE PHONE CALL FROM GE HE WAS TOLD THAT MR RUSSELL WAS IN DEEP TROUBLE JOBWISE SOME OF HIS SUBORDINATES HAVE GONE ABOVE HIS HEAD AND HAVE COMPLAINED ABOUT HIS LEADERSHIP STYLE MR SMART WAS ASKED TO COUNSEL MR RUSSELL IN MARCH 1991 MR SMART MET WITH MR RUSSELL IN CHICAGO AND LATER WROTE A MEMO FOR HIM LISTING HIS STRENGTHS FAR ABOVE AVERAGE INTELLIGENCE VERY HARD WORKER PROFESSIONAL APPEARANCE CAN BE VERY WARM SUPPORTIVE AND CARING BUT MR SMART ALSO INTERVIEWED STAFFERS IN WORTHINGTON ONE GE DOCUMENT SAYS MR SMART WAS TOLD BY MIDLEVEL MANAGERS AT SUPERABRASIVES THAT MR RUSSELL WAS INSECURE PARANOID INDECISIVE UTTERLY LACKING IN STRATEGIC VISION OR LEADERSHIP CAPABILITIES EMPLOYEES THE GE DOCUMENT ADDS ALSO EXPRESSED DEEP CONCERN ABOUT MR RUSSELL'S SOMETIMES VIOLENT TEMPER VIEWING HIM AS A LOADED CANNON' AFTER GETTING SUCH VIEWS ABOUT MR RUSSELL MR SMART SAID I THOUGHT HE COULD BE FIRED AT ANY MOMENT BY APRIL 1991 WORD OF MR RUSSELL'S PROBLEMS HAD REACHED GE'S TOP BRASS WHEN MR WELCH REVIEWED THE PERFORMANCE OF SEVERAL EXECUTIVES THE DISCUSSION INCLUDED THE PROFIT DECLINE AT SUPERABRASIVES STAFF DISCONTENT AND THE PROBLEMS ALLEGEDLY CAUSED BY MR RUSSELL'S WIFE ONE GE DOCUMENT SUMMARIZING THE REVIEW BORE THIS NOTATION MAKE SURE HIS WIFE IS OUT OF THE BUSINESS EQUATION THAT MR WELCH TESTIFIED IS SHORTHAND FOR THE DISCUSSION THAT TOOK PLACE ABOUT HIS WIFE COMING TO THE OFFICE OF DOING THINGS MR WELCH ADDED THAT'S A PRETTY STRONG STATEMENT I DON'T RECALL EVER SEEING THIS IN AN EVALUATION OF ANY GE OFFICER TO KEEP A FAMILY MEMBER OUT OF THE RUNNING OF THE BUSINESS IN MY 25 YEARS IN THE BUSINESS THE PERFORMANCE REVIEW MR WELCH CONCLUDED IN HIS DEPOSITION WAS JUST DISAPPOINTING I HAD BEEN A SUPPORTER OF MR RUSSELL AND IT WAS DISAPPOINTING THREE MONTHS LATER MR RUSSELL'S CAREER BEGAN HURTLING TOWARD DISASTER IN JULY HE PRESENTED A STRATEGY ANALYSIS AT GE HEADQUARTERS TO MR WELCH DENNIS DAMMERMAN GE'S SENIOR VICE PRESIDENT FOR FINANCE AND OTHER GE OFFICIALS MR DAMMERMAN BEGAN ASKING ABOUT PROBLEMS IN MBS DIAMONDS I WATCHED MR DAMMERMAN QUESTION HIM MR WELCH TESTIFIED AND I JUMPED IN EVERY NOW AND THEN AFTER I GOT THE DRIFT OF WHERE IT WAS GOING TO PURSUE WHAT WE'RE DOING HOW WE'RE DOING COULD WE GET BACK ON TRACK MR RUSSELL SOUGHT TO REASSURE HIS SUPERIORS BY SAYING ACCORDING TO MR WELCH THAT EVERYTHING WAS FINE AND UNDER CONTROL BUT AS THE MEETING BROKE UP AND MR RUSSELL LEFT THE ROOM MR DAMMERMAN WHEELED AROUND AND TOLD MR WELCH ACCORDING TO THE CHAIRMAN THAT SON OF A GUN LIED TO US HE SAT HERE AND LIED ABOUT WHAT'S HAPPENING OUT THERE IN WORTHINGTON THE SUPERABRASIVES BUSINESS MR DAMMERMAN MAINTAINED WASN'T FINE AT ALL MR WELCH WAS SHOCKED HE SAID IN HIS DEPOSITION REFERRING TO MR RUSSELL THAT WAS THE MOST UNBELIEVABLE PERFORMANCE WE HAD EVER SEEN IN GE STILL UNCERTAIN ABOUT MR RUSSELL THE CHAIRMAN ASSIGNED ROBERT NELSON GE VICE PRESIDENT FOR FINANCIAL ANALYSIS TO CHECK ON THE WORTHINGTON OPERATION HIS INSTRUCTIONS MR WELCH SAID WERE ALONG THE LINES OF CAN WE GET A HANDLE ON WHAT THE NUMBERS LOOK LIKE OUT THERE WHAT'S HAPPENING IN INVENTORIES SNIFF AROUND AND SEE WHAT'S GOING ON' MR NELSON REPORTED BACK THAT MR RUSSELL HAD NOT BEEN CANDID IN RESPONDING TO THE DAMMERMAN QUESTIONS A GE DOCUMENT SAYS MR RUSSELL VEHEMENTLY DISAGREES WITH THIS DESCRIPTION OF EVENTS HE DISPUTES THE IDEA THAT GE HAD FALLEN BEHIND IN TECHNOLOGY SAYING THAT HE HAD BEEFED UP RESEARCH BY HIRING SCIENTISTS FROM NEW DISCIPLINES HE SAYS HE PRESENTED A PAPER AT THE MEETING WITH MR WELCH WITH STATISTICS SHOWING THAT GE WAS GAINING MARKET SHARE AGAINST DE BEERS RATHER THAN LOSING THIS WAS DIRECTLY RESPONSIVE TO MR WELCH'S CONCERNS HE SAYS MR RUSSELL ALSO VIGOROUSLY DENIES THAT HE MISLED GE'S CHAIRMAN MR NELSON HE ADDS MUST HAVE GOTTEN BAD FACTS IN SEPTEMBER 1991 AT ANOTHER STRATEGY REVIEW IN PITTSFIELD MR RUSSELL MADE HIS FINAL APPEARANCE BEFORE MR WELCH AND OTHER TOP GE OFFICIALS WITH CATASTROPHIC RESULTS RESPONDING TO QUESTIONS MR RUSSELL GAVE WHAT MR WELCH DESCRIBED AS THE 50000 FEET HIGH ALTITUDE ANSWERS HE AGAIN BRUSHED OVER THE PROBLEMS IN MBS DIAMONDS THE CHAIRMAN COMPLAINED IN HIS DEPOSITION HE DIDN'T GET TO THE HEART OF THE PROBLEM WHICH WAS DE BEERS DE BEERS' QUALITY DE BEERS' YIELDS OF MBS DIAMONDS HE DIDN'T UNDERSTAND THE SERIOUSNESS AND THE MAGNITUDE OF THE ISSUES WE WERE TRYING TO DEAL WITH ON THE HELICOPTER BACK TO GE HEADQUARTERS MR WELCH SAID HE DECIDED TO HAVE THE VICE PRESIDENT FIRED THE NEXT DAY HE FAXED HIS RUSSELL HAS TO GO NOTE TO MR HINER IN PITTSFIELD MR RUSSELL MR WELCH WROTE MADE A FOOL OF HIMSELF IN JULY AND YESTERDAY HE APPEARED TOTALLY OUT OF IT HE GAVE MR HINER UNTIL THE END OF THE YEAR TO DISCHARGE MR RUSSELL MR RUSSELL DISPUTES THIS DESCRIPTION OF EVENTS AT THE SEPTEMBER MEETING THERE WAS NO HOSTILITY TOWARD HIM ON THE PART OF MR WELCH HE SAYS CAN YOU IMAGINE MEETING WITH JACK WELCH AND NOT KNOWING IF YOU GAVE A LOUSY PERFORMANCE HE ADDS THAT GE SUPERABRASIVES' PROFITS DROPPED IN 1991 MAINLY BECAUSE GE PLASTICS ALLOCATED GREATER COSTS TO THE DIAMOND UNIT NOT BECAUSE OF INROADS BY DE BEERS AND HE NOTES THAT JUST WEEKS EARLIER HIS SALARY WAS RAISED TO 205000 FROM 190000 WITH MR WELCH'S APPROVAL NEVERTHELESS RUMORS SWIRLED THROUGH GE THAT MR RUSSELL WOULD GET THE AX IN WORTHINGTON ONE AFTERNOON IN OCTOBER MR RUSSELL'S SECRETARY TOLD HIM SHE HAD HEARD HE WOULD BE REPLACED WITH A GE PLASTICS MAN SHOCKED MR RUSSELL DICTATED A MEMO FOR HIS FILES ABOUT WHAT HE BELIEVED WAS WRONGDOING AT GE IT RANGED FROM EXPENSEACCOUNT ABUSES SUCH AS A SALESMAN'S ALLEGED TRIPS TO BANGKOK TO VISIT PROSTITUTES TO AN ALLEGED PRICEFIXING CONSPIRACY WITH DE BEERS MR RUSSELL'S SECRETARY WHO TYPED THE MEMO WAS AGHAST AT ITS CONTENTS MRS MAURER IN A DEPOSITION SAID SHE CONFIDED IN A FELLOW WORKER I TOLD HIM THAT ED HAD WRITTEN A DOCUMENT A CHARACTER ASSASSINATION SHE ADDED WE DISCUSSED HOW HE HAD BEEN ACTING AND JUST THE CHAOS THAT WAS GOING ON IN OUR OFFICE MR RUSSELL HOWEVER WAS CONVINCED HE HAD GOOD GROUNDS FOR THE CHARGES A FEW WEEKS PREVIOUSLY MR HINER HAD FLOWN TO LONDON WHERE HE MET WITH TOP OFFICIALS OF DE BEERS BY MR HINER'S ACCOUNT IN HIS DEPOSITION HE WANTED TO OBTAIN A LICENSE FOR DE BEERS DIAMOND PRODUCTION TECHNOLOGY TO OFFSET GE'S WEAKNESSES IN RETURN FOR GE TECHNOLOGY ON WASTE DISPOSAL DE BEERS WASN'T INTERESTED MR RUSSELL SUGGESTED IN HIS MEMO THAT THE REAL PURPOSE OF THE MEETING HAD BEEN TO FIX PRICES OF SYNTHETIC DIAMONDS FOR WHICH GE PLASTICS WANTED TO CHARGE 12 MORE THE LONDON MEETING WAS HELD AT DE BEERS'S PRIVATE DINING ROOM COMPLETE WITH HAVANA CIGARS MR RUSSELL SAID IN HIS MEMO DECADENCE MEETS SLEAZE MR RUSSELL SAYS HE HAD OPPOSED MR HINER'S MEETING WITH DE BEERS FROM THE BEGINNING FOR FEAR OF VIOLATING US ANTITRUST LAWS I SAID TO MR HINER YOU ARE ABSOLUTELY CRAZY' TO MEET WITH DE BEERS MR RUSSELL SAYS IN AN INTERVIEW MR RUSSELL ALSO GAVE A MEMO TO MR HINER THAT HE SAYS INCLUDED A STRONG WARNING ABOUT THE DANGER OF ANTITRUST VIOLATIONS MR RUSSELL SAYS THAT HIS RECOMMENDATIONS WERE IGNORED BY MR HINER AND THAT HE WAS ULTIMATELY FIRED FOR HIS PROTESTS IN HIS MEMO MR RUSSELL CONCLUDED THE GE PLASTICS CULTURE IS DISGUSTING A CANCER ON AMERICAN INDUSTRY I WOULD RATHER BE A WIMP IN WORTHINGTON THAN A COMRADE FROM GE PLASTICS MR HINER NOW CHAIRMAN OF OWENSCORNING FIBERGLAS CORP HAS VIGOROUSLY DENIED ANY WRONGDOING INCLUDING PRICE FIXING OR FIRING MR RUSSELL FOR IMPROPER REASONS DE BEERS HAS ALSO DENIED ANY INVOLVEMENT IN PRICE FIXING THE END OF MR RUSSELL'S 18YEAR CAREER AT GE CAME SUDDENLY ON NOV 11 1991 HE WAS SUMMONED FROM WORTHINGTON TO PITTSFIELD BY MR HINER OSTENSIBLY FOR A BUDGET MEETING BUT AS THE TWO MEN SAT DOWN MR RUSSELL SAYS IN AN INTERVIEW MR HINER HANDED HIM A LETTER OF DISMISSAL MR RUSSELL WOULD BE RELIEVED OF EXECUTIVE AUTHORITY IMMEDIATELY BUT WOULD CONTINUE TO GET HIS SALARY AND PERKS FOR ONE YEAR UNLESS HE FOUND ANOTHER JOB SOONER THE WHOLE THING TOOK 15 MINUTES MR RUSSELL RECALLS AS SOON AS MR RUSSELL SIGNED THE DISMISSAL LETTER MR HINER HAD HIM FLOWN BACK TO WORTHINGTON IN A GE CORPORATE JET TWO YEARS LATER MR RUSSELL IS STILL LOOKING FOR A JOB 9311230079 931123 SOUTHWESTERN BELL TESTS SELFSERVE KIOSK AT STORES SAN ANTONIO SOUTHWESTERN BELL TELEPHONE CO A UNIT OF SOUTHWESTERN BELL CORP IS CONDUCTING A SIXMONTH TRIAL TO FIND OUT HOW OR IF PEOPLE LIKE ORDERING PHONE SERVICES THROUGH INTERACTIVE KIOSKS AT LOCAL DEPARTMENT STORES AS PART OF THE TRIAL SOUTHWESTERN BELL SAID IT INSTALLED 14 KIOSKS IN DEPARTMENT STORES IN THE OKLAHOMA CITY AREA THE COMPUTERIZED BOOTHS HAVE TOUCHSENSITIVE SCREENS THAT DISPLAY INFORMATION ON ABOUT A DOZEN OPTIONAL SERVICES LIKE CALL WAITING AND CALL FORWARDING CUSTOMERS ORDER SERVICES BY TYPING IN THEIR PHONE NUMBERS AND ZIP CODES A PAPER RECEIPT CONFIRMS THE TRANSACTION NEW SERVICES ARE INITIATED WITHIN TWO BUSINESS DAYS PARTICIPATING RETAILERS INCLUDE WALMART SEARS DILLARD'S AND TARGET STORES DEPENDING ON DEMAND SOUTHWESTERN BELL SAID THE SERVICE MAY BE EXPANDED TO OTHER MARKETS 9311230078 931123 MARKETSCAN OPEN SOME CANS AND JARS IT'S THANKSGIVING BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL THANKSGIVING SUMMONS UP VISIONS OF PLUMP BROWNED TURKEYS SAVORY STUFFING AND MASHED POTATOES SMOTHERED WITH GRAVY ALL LABORIOUSLY AND LOVINGLY PREPARED FROM SCRATCH BUT THE HOLIDAY TRIMMINGS NOWADAYS MAY ACTUALLY COME FROM THE KITCHENS OF KRAFT GENERAL FOODS AND HJ HEINZ MANY HOME CHEFS NOW LOAD THEIR HOLIDAY TABLES WITH STUFFING MASHED POTATOES AND GRAVY STRAIGHT FROM A PACKAGE THE DESIRE TO RECREATE A TRADITIONAL FEAST WITHOUT HAVING TO SPEND TOO MUCH TIME IN AN APRON HAS LED TO A SURGE OF CONVENIENCEFOOD SALES AT THE HOLIDAYS THAT DOESN'T SURPRISE PATRICIA VAN RIPER 49 WHO LIVES IN SYRACUSE NY AND WORKS AS AN ADMINISTRATIVE ASSISTANT FOR A LARGE CHARITY ALTHOUGH SHE LIKE MOST COOKS ALWAYS ROASTS A THANKSGIVING TURKEY SHE DEPENDS ON CONVENIENCE PRODUCTS ON THIS YEAR'S MENU PILLSBURY CRESCENT ROLLS MRS SMITH'S FROZEN PUMPKIN PIE AND STUFFING MADE FROM A PACKAGED MIX I ENJOY THE DAY MORE SHE SAYS AND I HAVE MORE TIME TO VISIT WITH PEOPLE FOOD MARKETERS EXPLOIT THE HARRIED FEELINGS OF MANY HOLIDAY COOKS IN A COMMERCIAL FOR GRAND METROPOLITAN PLC'S PILLSBURY UNIT MEMBERS OF A PILGRIM FAMILY ARE HORRIFIED TO REALIZE THEY'VE FORGOTTEN THE CRESCENT DINNER ROLLS THE PILLSBURY DOUGHBOY SAVES THE DAY WITH A ROLL OF REFRIGERATED DOUGH ADS FOR KELLOGG CO'S MRS SMITH'S PIES INVITE CONSUMERS TO CELEBRATE THE SEASON WITH FROZEN BAKED GOODS AND A COMMERCIAL FOR HJ HEINZ CO'S HOMESTYLE GRAVY SHOWS A THANKSGIVING DINNER RUINED BY MYSTERIOUS LUMPS IN A BUBBLING CAULDRON OF HOMEMADE GRAVY THERE ARE VERY FEW TABLES AT THANKSGIVING THAT DON'T HOLD A FEW PREPARED GROCERY PRODUCTS SAYS KATHLEEN DILLON PRODUCT MANAGER FOR HEINZ HOMESTYLE SHE ESTIMATES THAT THE MONTH OF NOVEMBER ACCOUNTS FOR ABOUT 20 OF ALL GRAVY SALES AND OF COURSE TURKEY IS THE TOPSELLING FLAVOR THE DAYS OF HOMECOOKED EVERYTHING ARE GONE SHE SAYS DATA FROM INFORMATION RESOURCES INC'S INFOSCAN SERVICE UNDERSCORE THE DIFFERENCE BETWEEN THE COMPLICATED RECIPES IN FOOD MAGAZINES AND WHAT ACTUALLY ENDS UP ON MOST TABLES LAST YEAR SUPERMARKET SALES OF STUFFING MIXES WERE 266 HIGHER IN NOVEMBER THAN DURING THE AVERAGE FOURWEEK PERIOD SALES OF PREPARED GRAVY WERE 157 HIGHER WHILE SALES OF FROZEN PIES WERE 192 ABOVE AVERAGE OTHER CONSUMERS AVOID COOKING ALTOGETHER THE WHOLE FOODS MARKET IN CHICAGO'S LINCOLN PARK NEIGHBORHOOD IS OFFERING A COMPLETE THANKSGIVING DINNER INCLUDING A STUFFED TURKEY ROASTED VEGETABLES AND SWEET POTATOES WITH MANGO THE UPSCALE GROCERY STORE EXPECTS TO PREPARE BETWEEN 40 AND 50 OF THE MEALS WHICH FEED SIX TO EIGHT AND COST 125 SIMILARLY THE SAN FRANCISCO MARRIOTT IS EXPECTING TO SELL BETWEEN 70 AND 100 OF ITS TURKEY TAKEOUT MEALS THIS THANKSGIVING UP FROM 50 DINNERS IN 1992 I REALLY THOUGHT THE HOLIDAYS WERE THE HOLDOUTS OF HOME COOKING LAMENTS LAURA SHAPIRO AUTHOR OF PERFECTION SALAD A HISTORY OF WOMEN AND COOKING AT THE TURN OF THE CENTURY YET EVEN MS SHAPIRO A SELFDESCRIBED FANATIC FOR TRADITION ADMITS SHE WILL BUY A PIE FROM A BAKERY THIS THANKSGIVING BUT WHAT NO SALES FIGURES CAN MENTION IS THE GUILT FACTOR SHE ADDS WHO CAN ESCAPE THAT NORMAN ROCKWELL THING PLENTY OF PEOPLE IT TURNS OUT WHO JUST DON'T HAVE THE TIME TO COOK A LAVISH HOLIDAY FEAST THANKSGIVING DINNERS TYPICALLY TAKE MORE THAN SEVEN HOURS TO PREPARE ABOUT SEVEN TIMES LONGER THAN THE AVERAGE MEAL ACCORDING TO A SURVEY BY TURKEY PROCESSOR SHADY BROOK FARMS A UNIT OF ROCCO INC MARKETERS SAY THE ACCEPTANCE OF PRODUCTS THAT PROMISE TO MAKE LIFE EASIER AT THE HOLIDAYS HAS DRAMATICALLY ACCELERATED SINCE THE 1970S AS WOMEN SURGED INTO THE WORK FORCE MEN MAY VENTURE INTO THE KITCHEN AT OTHER TIMES DURING THE YEAR BUT WOMEN STILL TAKE RESPONSIBILITY FOR HOLIDAY MEALS IN MOST HOUSEHOLDS MOST OF US WORK TODAY AND WE JUST CAN'T DO IT ALL SAYS HELOISE CRUSE WHOSE SYNDICATED COLUMN OF HOUSEHOLD TIPS HINTS FROM HELOISE APPEARS IN 500 NEWSPAPERS SHE IS HAVING 35 PEOPLE FOR DINNER BUT HAS ASKED EACH GUEST TO BRING A DISH MS CRUSE PLANS TO MAKE DIPS FROM SEASONING MIXES AND ORDER HORS D'OEUVRES FROM A CATERER SHE WILL SERVE CRANBERRY SAUCE FROM A CAN THERE IS NO SHAME IN USING CONVENIENCE FOODS SHE MAINTAINS MANY CONSUMERS HAVE NO CHOICE THEY MAY CRAVE FAMILIAR DISHES BUT HAVE NO IDEA HOW TO PREPARE THEM JEAN SCHNELLE DIRECTOR OF THE BUTTERBALL TURKEY TALKLINE SAYS CONSUMERS' QUESTIONS HAVE BECOME MORE BASIC OVER THE 13 YEARS THAT CONAGRA INC HAS OPERATED THE ADVICE SERVICE PEOPLE NO LONGER KNOW FOR EXAMPLE THAT BASTING MEANS POURING THE JUICES BACK OVER THE BIRD A PRACTICE BUTTERBALL DOES NOT RECOMMEND CALLERS MUST BE INSTRUCTED TO PUT THE TURKEY IN A ROASTING PAN BEFORE THEY PUT IT IN THE OVEN AND THE NUMBER OF CALLERS WHO WANT TO KNOW HOW TO TURN ON THEIR OVEN IS STEADILY INCREASING MARKETERS SAY THE PRODUCTS PEOPLE BUY AT THANKSGIVING ARE ALSO HEAVILY INFLUENCED BY THEIR OWN FAMILY TRADITIONS MANY PEOPLE CONSIDER CANNED CRANBERRY SAUCE HOMEMADE FOR EXAMPLE BECAUSE THEY GREW UP EATING THE CANNED VERSION AT THANKSGIVING OCEAN SPRAY CRANBERRIES INC SAYS THE JELLIED PRODUCT REMAINS AN OVERWHELMING HOLIDAY FAVORITE AMERICANS CONSUME SOME 55 MILLION ONEPOUND CANS OF CRANBERRY SAUCE EACH THANKSGIVING BUT ONLY ABOUT 12 MILLION POUNDS OF HOMEMADE SAUCE WHAT'S MORE THE DEFINITION OF SCRATCH COOKING HAS CHANGED IF CONSUMERS PLAY ANY ROLE IN THE PREPARATION OF A FOOD PRODUCT MARKETERS SAY PEOPLE OFTEN BELIEVE THEY HAVE COOKED IT FROM SCRATCH MARCIA MATALON MAY WHO MANAGES REALESTATE LOANS FOR A COMPANY IN CHICAGO SAYS SHE MADE AN EARLY THANKSGIVING DINNER FROM SCRATCH EVEN THOUGH SHE USED A BAG OF CAMPBELL SOUP CO'S PEPPERIDGE FARM SEASONED STUFFING LIKE MANY CONTEMPORARY COOKS SHE NEVER CONSIDERED MAKING HER OWN BREAD CRUMBS TO GIVE COOKS A GREATER SENSE OF ACCOMPLISHMENT THIS YEAR PILLSBURY INSERTED HINTS FOR CUSTOMIZING ITS PREPARED FOOD PRODUCTS ALONG WITH COUPONS IN NEWSPAPERS NATIONWIDE THE COMPANY SUGGESTS ADDING SAUTEED MUSHROOMS AND ALMONDS TO ITS CANNED ASPARAGUS OR BRUSHING REFRIGERATED DOUGH WITH MELTED BUTTER JUST BEFORE BAKING IT ISN'T JUST THAT PEOPLE ARE USING MORE CONVENIENCE PRODUCTS THIS YEAR SAYS GREG LINCOLN DIRECTOR OF ADVERTISING SERVICES FOR PILLSBURY IT'S THAT THEY'RE MORE OPEN ABOUT IT MANY CONSUMERS HAVE ALREADY HIT ON THE ULTIMATE CONVENIENCE STRATEGY FOR THE HOLIDAYS GROWING NUMBERS OF CELEBRANTS NOWADAYS SIMPLY MAKE RESTAURANT RESERVATIONS AND THOUGH SOME 75 OF AMERICANS WILL DIG INTO A TURKEY DINNER ON THANKSGIVING ONLY ABOUT 25 OF ALL HOUSEHOLDS PREPARE ONE ACCORDING TO HARRY BALZER A VICE PRESIDENT AT NPD GROUP A CHICAGO FIRM THAT TRACKS AMERICANS' EATING HABITS THE REAL SECRET OF THANKSGIVING HE SAYS IS TO BE A GUEST INDEX OF SUPERMARKET SALES OF SELECTED CONVENIENCEFOOD ITEMS IN THE FOUR WEEKS AROUND THANKSGIVING 1992 THE FIGURE FOR AN AVERAGE FOURWEEK PERIOD IS 100 9311230077 931123 USX PACT GIVES UNION BOARD SEAT ALTERS PENSIONS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH THE TENTATIVE 66MONTH LABOR PACT REACHED LAST WEEK BY THE UNITED STEELWORKERS UNION AND USX CORP'S US STEEL UNIT ALLOWS THE UNION TO NOMINATE A BOARD MEMBER AND BOOSTS PENSION BENEFITS ACCORDING TO PEOPLE FAMILIAR WITH THE CONTRACT THE AGREEMENT WHICH MUST BE APPROVED BY UNION OFFICIALS AS WELL AS BY RANK AND FILE MEMBERS RESEMBLES CONTRACTS REACHED WITH OTHER MAJOR STEELMAKERS EARLIER THIS YEAR AMONG BIG STEELMAKERS USX WAS A HOLDOUT ON ALLOWING THE UNION REPRESENTATION ON ITS BOARD THE COMPANY BROKE OFF CONTRACT TALKS IN MARCH OVER THE ISSUE BUT SINCE THEN THREE OTHER BIG STEELMAKERS BETHLEHEM STEEL CORP INLAND STEEL INDUSTRIES INC AND NATIONAL STEEL CORP REACHED CONTRACTS WITH THE STEELWORKERS THAT INCLUDED A BOARD SEAT IF YOU'VE GOT ALL YOUR PEERS DOING THIS THEN IT'S QUITE DIFFICULT TO BUCK THE TREND SAID CHRISTOPHER PLUMMER AN INDUSTRY CONSULTANT WITH RESOURCE STRATEGIES INC THE PENSION PROVISION SETS A 2000AMONTH MINIMUM FOR WORKERS WHO RETIRE AT AGE 65 WITH 30 YEARS OF SERVICE ACCORDING TO PEOPLE FAMILIAR WITH THE CONTRACT THE MINIMUM AMOUNT DECLINES BY AN UNDETERMINED AMOUNT TO AGE 55 UNDER THE CURRENT CONTRACT WHICH EXPIRES JAN 31 THE MINIMUM OF 1500 APPLIES TO WORKERS UP TO AGE 62 THOSE OVER 62 AREN'T GUARANTEED A MINIMUM UNION NEGOTIATORS WENT AFTER BETTER PENSION TERMS BECAUSE THE COMPANY HAS A FULLY FUNDED PENSION PLAN UNLIKE SOME OF ITS CHIEF COMPETITORS THE STEELWORKERS CONSIDER THE MINIMUM CRUCIAL BECAUSE IT SETS A FLOOR ON PENSION PAYMENTS FOR THE COMPANY MR PLUMMER SAID THE PENSION PROVISION MAKES IT MORE ATTRACTIVE FOR EMPLOYEES TO WORK UNTIL THEY'RE 65 YEARS OLD EARLY RETIREES OFTEN COST THE COMPANY BECAUSE IT'S FORCED TO PICK UP COSTS THAT GOVERNMENT PROGRAMS WON'T PAY FOR UNTIL AGE 65 IN OTHER RESPECTS THE US STEEL LABOR PACT MIRRORS CONTRACTS REACHED WITH BETHLEHEM INLAND STEEL AND NATIONAL STEEL FOR INSTANCE IT INCLUDES MODEST WAGE INCREASES A NOLAYOFF CLAUSE AND ELIMINATES SOME WORK RULES AND SETS WORKFORCE REDUCTIONS THROUGH ATTRITION 9311230076 931123 INTERNATIONAL FAILURE OF EUROPE AIRLINES TO COMBINE HURTS SHARES A WALL STREET JOURNAL NEWS ROUNDUP THE WEEKEND COLLAPSE OF THE PLANNED MERGER OF FOUR MIDSIZE EUROPEAN AIRLINES PUMMELED SHARES OF THREE OF THE CARRIERS INVOLVED AIRLINE EXECUTIVES SAID THE MERGER PROJECT DUBBED ALCAZAR WOULD HAVE PROVIDED URGENTLY NEEDED COST SAVINGS TO THE FOUR AIRLINES ALL OF WHICH COMPETE FOR MANY OF THE SAME OR SIMILAR ROUTES IN EUROPE THE NEW GROUP IMMEDIATELY WOULD HAVE BECOME EUROPE'S LARGEST AIRLINE INVESTORS HAD BEEN PAYING A PREMIUM FOR THE ALCAZAR SYNERGIES SAID URS KUNZ AN ANALYST AT CS INVESTMENT RESEARCH IN ZURICH NOW THAT DREAM ISN'T COMING THROUGH THE PREMIUM HAS SHRUNK ALMOST TO WHERE WE WERE BEFORE SHARES IN THE VARIOUS HOLDING COMPANIES THAT CONTROL SCANDINAVIAN AIRLINES SYSTEM FELL ABOUT 12 ON THE COPENHAGEN STOCKHOLM AND OSLO EXCHANGES KLM SHARES FELL ABOUT 8 WITH THE PRICE ENDING AT 3720 GUILDERS 1931 IN AMSTERDAM OFF 330 GUILDERS SWISSAIR SHARES SLIPPED ABOUT 46 ENDING IN ZURICH AT 725 SWISS FRANCS 48082 DOWN 35 FRANCS THE LITTLETRADED AUSTRIAN AIRLINES SHARES ESCAPED THE SELLOFF ENDING IN VIENNA AT 1740 AUSTRIAN SCHILLINGS 14409 UP SLIGHTLY FROM 1735 THE NEW MERGED AIRLINE WOULD HAVE BEEN A FORMIDABLE CHALLENGER TO THE REGION'S THREE LARGEST AIRLINES BRITISH AIRWAYS AIR FRANCE AND LUFTHANSA THE BENEFICIARIES OF ALCAZAR'S COLLAPSE ARE THE BIG BOYS SAID CHRIS AVERY AN ANALYST AT PARIBAS CAPITAL MARKETS LTD IN LONDON WHAT COULD HAVE BEEN A THREAT RIGHT AT THEIR DOORSTEPS IS NOW VERY MUCH MARGINALIZED 9311230075 931123 ANTIDUMPING DUTIES ARE TENTATIVELY SET ON WIREROD MAKERS WASHINGTON THE COMMERCE DEPARTMENT LEVIED PRELIMINARY ANTIDUMPING DUTIES AGAINST JAPANESE BRAZILIAN AND CANADIAN MAKERS OF STEEL WIRE ROD THE ACTION RESULTS FROM A COMPLAINT FILED BY US MANUFACTURERS THAT FOREIGN COMPANIES ARE SELLING THE PRODUCT IN THE US FOR LESS THAN THEY SELL IT DOMESTICALLY THE MATERIAL IS USED MAINLY IN THE CONSTRUCTION INDUSTRY FOR CANADA THE BIGGEST FOREIGN SOURCE OF THE ROD DUTIES RANGE FROM 96 AGAINST INVACO INC TO 13 AGAINST STELCO LTD ALL OTHER CANADIAN MANUFACTURERS WERE ASSESSED A DUTY OF 11 CANADA SOLD 182 MILLION OF THE ROD LAST YEAR IN THE US MANUFACTURERS IN JAPAN WERE ASSESSED A 48 DUTY THEY SOLD 126 MILLION OF THE PRODUCT IN THE US LAST YEAR BRAZILIAN MANUFACTURERS WITH SALES OF 22 MILLION IN THE US LAST YEAR WERE ASSESSED A 28 DUTY IMPORTS ACCOUNT FOR 25 OF THE 2 BILLION US MARKET FOR THE PRODUCT NOW THAT THE PRELIMINARY RULING HAS BEEN MADE THE COMMERCE DEPARTMENT WILL EXAMINE MORE EVIDENCE AND THEN MAKE A FINAL DETERMINATION AFTER THAT THE US INTERNATIONAL TRADE COMMISSION MUST RULE BY MARCH 21 1994 WHETHER IMPORTS FROM BRAZIL AND JAPAN CAUSED ACTUAL FINANCIAL INJURY TO THE US INDUSTRY AND BY MARCH 26 1994 ON THE SAME ISSUE FOR CANADA THE PETITIONERS ARE CONNECTICUT STEEL CORP GEORGETOWN STEEL CORP KEYSTONE STEEL & WIRE CO AND NORTHSTAR STEEL TEXAS INC ANOTHER PETITIONER RARITAN RIVER STEEL CO FILED COMPLAINTS AGAINST CANADIAN AND JAPANESE MAKERS ONLY THE PRELIMINARY DUTIES TAKE EFFECT AS SOON AS THEY ARE PUBLISHED IN THE FEDERAL REGISTER THE COMMERCE DEPARTMENT IS TO SET FINAL TARIFFS FOR CANADA ON APRIL 11 1994 AND FOR JAPAN AND BRAZIL ON JAN 2 1994 9311230074 931123 UAW OFFICIAL DECRIES GM'S APPROACH IN IMPLEMENTING NEW LABOR ACCORD BY DOUGLAS LAVIN AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL AUBURN HILLS MICH GENERAL MOTORS CORP'S EXPENSIVE NEW LABOR CONTRACT WAS INTENDED TO BUY LABOR PEACE BUT EVEN BEFORE THE INK WAS DRY A TOP UNITED AUTO WORKERS OFFICIAL LASHED OUT AT THE AUTO MAKER STEPHEN P YOKICH THE UAW'S TOP GM NEGOTIATOR HINTED THAT GM MAY FACE LOCAL WORK DISRUPTIONS AS EARLY AS JANUARY HE SURPRISED GM EXECUTIVES AT WHAT WAS TO HAVE BEEN A ROUTINE CONTRACT SIGNING CEREMONY BY LOUDLY CRITICIZING THE WAY GM IS IMPLEMENTING ITS NEW AGREEMENT AT THE LOCAL LEVEL JUST LAST WEEK GM'S CHIEF EXECUTIVE OFFICER JOHN F SMITH JR TOLD WALL STREET ANALYSTS THAT THE COMPANY'S COSTLY NEW THREEYEAR PACT WITH THE UAW WOULD RESULT IN MORE COOPERATIVE LABOR RELATIONS BUT YESTERDAY AN ANGRY MR YOKICH TOLD MR SMITH AND GM'S TOP BARGAINERS THAT GM HAS FAILED TO TURN OVER A NEW LEAF THE REAL GM IS BACK AND IS JUST LIKE IT WAS MR YOKICH TOLD A CLOSED MEETING OF GM AND UAW BARGAINERS GATHERED TO SIGN THE NATIONAL CONTRACT MR YOKICH'S COMMENTS ARE SURPRISING SAID STEPHEN GIRSKY AN AUTOMOTIVE ANALYST WITH PAINEWEBBER INC GIVEN THAT GM WAS SUPPOSED TO HAVE BOUGHT LABOR PEACE WITH THIS EXPENSIVE NEW CONTRACT GM OFFICIALS PLAYED DOWN THE REMARKS BY MR YOKICH WHO IS WIDELY EXPECTED TO BE THE UAW'S NEXT PRESIDENT GM SAID MR YOKICH WAS REFERRING ONLY TO A FEW LOCAL PROBLEMS WHICH THE AUTO MAKER IS READY TO DISCUSS WITH THE UNION WE DON'T VIEW THIS AS A SETBACK A SPOKESMAN SAID JUST MINUTES BEFORE MR YOKICH'S OUTBURST REPORTERS WERE USHERED INTO A CONFERENCE ROOM FOR WHAT WAS BILLED AS A PHOTO OPPORTUNITY OWEN BIEBER UAW PRESIDENT AND MR SMITH MADE A FEW PLEASANT REMARKS AND BEGAN SIGNING THE LABOR AGREEMENT BUT A VISIBLY ANGRY MR YOKICH DECLARED I'LL MAKE MY REMARKS AFTER THE PRESS LEAVES HE THEN LAUNCHED INTO A DIATRIBE THAT WAS AUDIBLE IN THE CORRIDOR OUTSIDE MR YOKICH SAID GM WAS BEING UNCOOPERATIVE AND WAS ATTEMPTING TO INTIMIDATE LOCAL UNIONS WITH THREATS THAT THEIR PLANTS WOULD BE CLOSED OR SOLD SIGN THIS OR YOU'RE ON THE BLOCK IS HOW HE CHARACTERIZED GM'S POSITION BUT MR YOKICH VOWED THAT THE UAW WOULDN'T ACCEPT GM'S ULTIMATUM I KNOW HOW TO GET A GOOD AGREEMENT AND WE'RE GOING TO START THAT JANUARY 1 HE TOLD GM AND UAW OFFICIALS ASKED TO EXPLAIN MR YOKICH'S REMARKS A UAW SPOKESMAN LATER SAID THE UNION IS WILLING TO USE THE SAME TACTICS IT HAS USED IN THE PAST TO ENFORCE AN AGREEMENT AT LOCAL LEVELS LAST YEAR THE UNION CRIPPLED GM WITH A NINEDAY STRIKE AT A KEY LORDSTOWN OHIO METALSTAMPING PLANT BECAUSE THE UNION SAID GM WAS NOT PROPERLY OBSERVING THE NATIONAL CONTRACT GM HAS BEEN BANKING THAT ITS NEW COOPERATIVE RELATIONSHIP WITH THE UAW WILL LEAD TO CONCESSIONS AT THE PLANT LEVEL GM IS PRESSING THE UNION PARTICULARLY HARD IN ITS PARTSMAKING UNITS WHICH PAY 42 AN HOUR IN WAGES AND BENEFITS DOUBLE WHAT OUTSIDE SUPPLIERS PAY SOME 20000 TO 30000 GM WORKERS ARE EMPLOYED IN PARTS OPERATIONS THAT GM CONSIDERS UNCOMPETITIVE IN THE CONTRACT TALKS GM LOST A BID FOR LOWER WAGES IN THE PARTS PLANTS BUT WON A WRITTEN PLEDGE FROM THE UNION TO COOPERATE IN EFFICIENCY EFFORTS JT BATTENBERG III A GM VICE PRESIDENT IN CHARGE OF THE PARTS OPERATIONS SAID UNION COOPERATION IS ABSOLUTELY CRITICAL IN ADDITION TO THE NATIONAL AGREEMENT THERE ARE 129 SEPARATE AGREEMENTS BETWEEN GM AND UAW LOCALS OF WHICH ONLY 44 HAVE BEEN SIGNED 9311230073 931123 ABREAST OF THE MARKET INDUSTRIAL AVERAGE DECLINES 2376 ON FEARS OF RISING INTEREST RATES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK FEARS THAT INTEREST RATES WILL CONTINUE TO RISE COUPLED WITH TUMBLING WORLD STOCK MARKETS CRIPPLED EQUITY PRICES FUTURESRELATED PROGRAM SELLING THROUGHOUT THE DAY DIDN'T HELP THE CHANCES FOR AN UPWARD MOVE TRADERS SAID BIG BOARD DECLINERS TRAMPLED ADVANCING STOCKS 1700 TO 484 ON VOLUME OF 276779870 SHARES ON FRIDAY 300886700 SHARES CHANGED HANDS THE TREASURY'S LONG BOND FELL 3/4 POINT DESPITE A SUCCESSFUL TWOYEAR NOTE AUCTION ITS YIELD CLIMBED TO 638 OVERSEAS MARKETS PUT PRESSURE ON STOCK PRICES SHARE PRICES PLUNGED 31 IN TOKYO AND 23 IN FRANKFURT WEAKER STOCKS IN LONDON AND HONG KONG ADDED TO THE PESSIMISM MORE PROFITTAKING HIT THE NASDAQ STOCK MARKET AND ITS INDEX CLOSED DOWN 1343 POINTS OR 179 AT 73813 A SIXTH STRAIGHT DECLINE THE BAROMETER HAS CEDED 528 SINCE NOV 12 THE MOST RECENT DAY IT ROSE WITH THE HOLIDAY COMING UP PEOPLE EVENED OUT POSITIONS SAID LARRY KINNEY A VICE PRESIDENT AT SOUNDVIEW FINANCIAL CORP TRADERS EXPECT VOLUME TO THIN AS THE WEEK PROGRESSES BECAUSE OF THE THANKSGIVING HOLIDAY FRIDAY'S ABBREVIATED SESSION IS EXPECTED TO BE SLOW MR KINNEY SAID CYCLICALS WERE PARTICULARLY HARD HIT AFTER THEIR STRONG RUN RECENTLY ON A SPATE OF ENCOURAGING ECONOMIC NEWS THE BIG AUTO MAKERS ALL FELL GENERAL MOTORS CORP LOST 1 1/2 TO 52 3/4 THE COMPANY SAID IT IS CONDUCTING A VOLUNTARY SAFETY RECALL ON ABOUT 13000 1991 BUICK REGALS EQUIPPED WITH A 38LITER ENGINE ALSO CHRYSLER CORP LOST 2 TO 52 1/4 AND FORD MOTOR CO WAS DOWN 2 1/8 AT 59 5/8 OTHER BLUE CHIPS ALSO PERFORMED POORLY CATERPILLAR INC SEARS ROEBUCK & CO AND MERCK & CO EACH LOST AT LEAST 1 1/2 POINTS TODD CLARK A SENIOR BLOCK TRADER AT MABON SECURITIES CORP SAID MANY INVESTORS ARE CONCERNED THAT INFLATION IS ON THE RISE THE COMMODITY RESEARCH BUREAU INDEX ROSE 022 POINT TO 22371 A 1993 HIGH THE INDEX IS A LEADING INFLATION INDICATOR HE ADDED THAT THE IMPENDING TAX INCREASE IS ALSO FUELING INFLATION JITTERS DESPITE YESTERDAY'S SELLOFF THE NATION'S MOST SOPHISTICATED INVESTORS ARE SAID TO BE INCREASINGLY OPTIMISTIC ABOUT THE US ECONOMY AND ALMOST HALF OF THEM THINK THE STOCK MARKET WILL RISE OVER THE NEXT YEAR ACCORDING TO A SURVEY CONDUCTED BY QUICK & REILLY THE BROKERAGE FIRM QUICK & REILLY FOUND THAT 48 OF THE INVESTORS SURVEYED BELIEVE THAT STOCKS WILL ADVANCE IN THE COMING YEAR UP FROM ABOUT 38 WHO FELT THAT WAY IN JULY THE NORTH AMERICAN FREE TRADE AGREEMENT CERTAINLY BOOSTED THEIR CONFIDENCE IN THE MARKET SAID THOMAS C QUICK PRESIDENT NOTING THAT THE READING ON INVESTOR SENTIMENT WAS TAKEN AFTER THE NAFTA VOTE SEVERAL STOCKS RECOMMENDED BY LEGG MASON IN ITS ANNUAL THANKSGIVING LIST BUCKED THE DAY'S TIDE AND ROSE PORTA SYSTEMS WHICH MAKES EQUIPMENT USED BY TELEPHONE COMPANIES SURGED 1 1/8 TO 11 1/8 ON THE AMERICAN STOCK EXCHANGE SHAWMUT NATIONAL A BANKING COMPANY ADVANCED 3/4 TO 20 7/8 BAUSCH & LOMB AN EYECARE AND HEARINGAID COMPANY EDGED UP 1/4 TO 52 3/4 INVESTORS WATCH LEGG'S LIST CLOSELY BECAUSE IT HAS BEATEN THE MARKET IN 12 OF THE PAST 15 YEARS OFTEN BY A LOT THIS PAST YEAR THE BALTIMORE BROKERAGE FIRM'S PICKS ROSE 23 ON A BUYANDHOLD BASIS ROUNDING OUT ITS NEW LIST ARE AMERICAN PACIFIC BEVERLY ENTERPRISES HOUGHTON MIFFLIN HUBBCO IMO INDUSTRIES INDEPENDENT BANK OCTEL COMMUNICATIONS WABAN AND YOUNKERS GAMBLING STOCKS SLID PROMUS COS PLUNGED 4 1/4 TO 58 3/4 CIRCUS CIRCUS ENTERPRISES INC FELL 1 3/4 TO 31 3/4 AND CAESARS WORLD INC DROPPED 3/4 TO 47 1/2 TECHNOLOGY ISSUES ALSO WERE TRIPPED UP MOTOROLA INC GAVE BACK 2 1/2 TO 93 1/2 HEWLETTPACKARD CO RETREATED 2 1/2 TO 71 1/2 AND MICROSOFT CORP LOST 3 1/8 TO 77 ON NASDAQ ELSEWHERE MERGER NEWS CARRIED FIRST CHICAGO CORP 1 5/8 LOWER TO 42 3/8 THE BANK HOLDING COMPANY SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY THE STOCK OUTSTANDING OF NASDAQTRADED LAKE SHORE BANCORP FOR ABOUT 323 MILLION IN FIRST CHICAGO COMMON SHARES ALSO IN THE INTERESTRATE SENSITIVE GROUP MANY INSURERS WEAKENED AMERICAN INTERNATIONAL GROUP FOR INSTANCE FELL 1 7/8 TO 86 1/2 LINCOLN NATIONAL CORP DROPPED 3/4 TO 41 7/8 AND KEMPER CORP SANK 3 TO 33 1/4 ON THE UP SIDE CARLSBAD CALIFBASED CALLAWAY GOLF CO ADDED 1 7/8 TO 46 7/8 MERRILL LYNCH & CO LIFTED ITS INTERMEDIATE AND LONGTERM INVESTMENT RATINGS TO BUY FROM ABOVE AVERAGE ANALYST ERIC KATZMAN ALSO RAISED HIS 1993 AND 1994 EARNINGS ESTIMATES CITING STRONG FUNDAMENTALS A SHARP SHAREPRICE PULLBACK RECENTLY AND EXPECTED IMPROVED MARKET SHARE ALUMINUM ISSUES BUCKED THE SELLING TREND ALUMINUM CO OF AMERICA JUMPED 1 1/2 TO 71 3/4 REYNOLDS METALS CO GAINED 5/8 TO 46 3/4 AND MAXXAM INC ADDED 2 TO 36 ON THE AMEX BURLINGTON RESOURCES INC SEATTLE JUMPED 1 3/4 TO 45 1/2 AFTER THE CLOSE FRIDAY STANDARD & POOR'S SAID IT REMOVED PARAMOUNT COMMUNICATIONS INC FROM THE S&P 500 INDEX AND REPLACED IT WITH BURLINGTON AN OIL AND GAS CONCERN PARAMOUNT A NEW YORK ENTERTAINMENT PRODUCER MOVED 2 5/8 HIGHER TO 79 A DELAWARE CHANCERY COURT JUDGE DELAYED UNTIL AT LEAST TOMORROW A DECISION IN QVC NETWORK INC'S CHALLENGE TO THE FRIENDLY MERGER AGREEMENT BETWEEN PARAMOUNT AND ITS CHOSEN PARTNER VIACOM INC ACCORDING TO AN UNIDENTIFIED QVC OFFICIAL VIACOM A DEDHAM MASS CABLE TELEVISION FIRM SAID IT WILL EXTEND ITS OFFER TO MIDNIGHT TOMORROW AND QVC WILL EXTEND ITS OFFER TO MIDNIGHT DEC 1 PARAMOUNT TOPPED THE BIG BOARD'S MOST ACTIVE LIST WITH VOLUME OF 78 MILLION SHARES UP FROM THE AVERAGE 17 MILLION SHARES TRADED DAILY VIACOM FELL 1 1/4 TO 47 5/8 ON THE AMERICAN STOCK EXCHANGE AND QVC NETWORK A WEST CHESTER PA HOME SHOPPING NETWORK EASED 1 TO 49 3/4 ON THE NASDAQ STOCK MARKET OTHER COMMUNICATIONS ISSUES ALSO FELL SWEDEN'S ERICSSON SAGGED 3 3/4 TO 38 7/8 AND COMCAST CORP WAS OFF 1 1/2 AT 34 5/8 BOTH ARE TRADED ON THE NASDAQ MARKET 9311230072 931123 INTERNATIONAL GRUPO SYNKRO SA OF MEXICO TO BUY KAYSERROTH CORP BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL GRUPO SYNKRO SA A MEXICAN LEGWEAR PRODUCER SAID IT REACHED AN AGREEMENT TO ACQUIRE HOSIERY MAKER KAYSERROTH CORP FROM COLLINS & AIKMAN GROUP INC FOR ABOUT 233 MILLION GRUPO SYNKRO SAID THE COMBINED COMPANIES WOULD HAVE ABOUT 600 MILLION A YEAR IN SALES IN 1992 GRUPO SYNKRO HAD ABOUT 180 MILLION IN SALES KAYSERROTH WILL OPERATE INDEPENDENTLY AND MAINTAIN ITS GREENSBORO NC HEADQUARTERS GRUPO SYNKRO SAID WE HAVE NO INTENTION OF EXPORTING JOBS TO MEXICO THE COMPANY ADDED KAYSERROTH MAKES HOSIERY UNDER THE BRAND NAMES NO NONSENSE AND BURLINGTON AND HAS ABOUT 5000 EMPLOYEES IN THE US IT HAS PLANTS IN NORTH AND SOUTH CAROLINA TENNESSEE AND PUERTO RICO ROBERT SEELERT PRESIDENT AND CHIEF EXECUTIVE AT KAYSERROTH AND THE PRESENT MANAGEMENT WILL KEEP THEIR POSTS THE ANNOUNCEMENT SAID GRUPO SYNKRO SAID IT IS MEXICO'S LARGEST LEGWEAR PRODUCER AND ONE OF THE TOP FIVE WORLDWIDE THE COMPANY ALSO SAID IT WAS THE LEADER IN THE LATIN AMERICAN MARKET FOR BRANDED HOSIERY WITH A 14 SHARE OTHER INVESTORS IN THE DEAL INCLUDE THE BALLESTEROS FAMILY GRUPO SYNKRO'S PRINCIPAL STOCKHOLDERS 9311230071 931123 BUSINESS BRIEF NORTHLAND CRANBERRIES INC RECORD REVENUE IS EXPECTED DESPITE POOR FRUIT HARVEST DESPITE POOR GROWING CONDITIONS THIS YEAR NORTHLAND CRANBERRIES INC WISCONSIN RAPIDS WIS EXPECTS RECORD REVENUE OF ABOUT 16 MILLION FOR THE FISCAL YEAR ENDING MARCH 31 JOHN SWENDROWSKI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NATION'S ONLY PUBLICLY TRADED CRANBERRY GROWER SAID THAT REVENUE IS EXPECTED TO JUMP ABOUT 23 FROM FISCAL 1993 BECAUSE MORE OF THE COMPANY'S MARSHES REACHED MATURITY MR SWENDROWSKI SAID HE IS COMFORTABLE WITH THE ESTIMATES OF STOCK ANALYSTS THAT THE COMPANY WILL EARN BETWEEN 80 CENTS A SHARE AND 85 CENTS A SHARE FOR FISCAL 1994 FOR THE YEAR ENDED MARCH 31 1993 THE COMPANY EARNED 19 MILLION OR 51 CENTS A SHARE ON REVENUE OF 13 MILLION MR SWENDROWSKI SAID THE UNUSUALLY COOL AND WET MIDWEST SUMMER SHORTENED THE CRANBERRYGROWING SEASON SO MUCH THAT THE INDUSTRYWIDE WISCONSIN HARVEST WAS ABOUT 20 BELOW ORIGINAL PROJECTIONS NORTHLAND HARVESTED 1520 ACRES IN WISCONSIN AND MASSACHUSETTS LAST MONTH COMPARED WITH 1114 ACRES IN OCTOBER 1992 THE INDUSTRYWIDE US CRANBERRY HARVEST IS ESTIMATED AT 42 MILLION BARRELS WHICH IS FLAT COMPARED WITH LAST YEAR ONE BARREL REPRESENTS 100 POUNDS OF FRUIT 9311230070 931123 BUSINESS BRIEF MGM GRAND INC LUXURYAIRLINE SUBSIDIARY TO TAKE 68 MILLION CHARGE MGM GRAND INC LAS VEGAS SAID ITS LUXURYAIRLINE SUBSIDIARY MGM GRAND AIR WILL REDUCE THE BOOK VALUE OF ITS SIX AIRCRAFT AND RELATED EQUIPMENT RESULTING IN A ONETIME CHARGE AGAINST EARNINGS OF 68 MILLION LATE LAST YEAR THE LUXURYAIRLINE DISCONTINUED ITS SCHEDULED SERVICE BETWEEN LOS ANGELES AND NEW YORK AND NOW OPERATES AS A CHARTER CARRIER MGM GRAND AIR REPORTED AN OPERATING LOSS OF 137 MILLION ON REVENUE OF 50 MILLION FOR 1992 AND THE PARENT COMPANY SAID THE AIRLINE'S CHARTER BUSINESS HAS IMPROVED RECENTLY THE PARENT COMPANY IS PLANNING TO OPEN ITS 1 BILLION CASINOHOTEL AND THEME PARK NEXT MONTH AND ANALYSTS SAID MGM GRAND MAY HAVE WANTED TO TAKE THE CHARGE BEFORE THE RESORT'S DEBUT MGM GRAND'S STOCK CLOSED AT 3750 DOWN 1375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9311230069 931123 BUSINESS BRIEF TRIARC COS HOLDING COMPANY TO BUY REST OF SOUTHEASTERN PUBLIC TRIARC COS WEST PALM BEACH FLA SAID IT WILL ACQUIRE THE 29 OF SOUTHEASTERN PUBLIC SERVICE CO THAT IT DOESN'T ALREADY OWN IN A STOCK TRANSACTION VALUED AT 69 MILLION SOUTHEASTERN PUBLIC SHAREHOLDERS WILL RECEIVE A TOTAL OF 27 MILLION TRIARC SHARES OR 08 TRIARC SHARES FOR EACH SHARE OF THE UTILITY THEY OWN THE ACQUISITION WHICH IMPLEMENTS THE TERMS OF A SETTLEMENT BETWEEN SOUTHEASTERN SHAREHOLDERS AND TRIARC STILL REQUIRES COURT AND SHAREHOLDER APPROVAL TRIARC FORMERLY DWG CORP IS A HOLDING COMPANY THAT OWNS ARBY'S INC ROYAL CROWN COLA CO GRANITEVILLE CO AND NATIONAL PROPANE CORP IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TRIARC FELL 225 TO 2550 A SHARE 9311230068 931123 SPEAKING OF BUSINESS THE NEW INDUSTRIAL REVOLUTION BY LINDLEY H CLARK JR CONGRESSIONAL APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT IS ANOTHER STEP IN OUR NEW INDUSTRIAL REVOLUTION IT'S EITHER THE THIRD REVOLUTION OR THE SECOND DEPENDING ON YOUR DATING PREFERENCES THE FIRST REVOLUTION BEGAN IN BRITAIN IN THE LATE 18TH CENTURY NEW ENERGY SOURCES WERE APPLIED TO NEW METHODS OF PRODUCTION OUTPUT BECAME MUCH MORE EFFICIENT AND UNEMPLOYMENT ROSE AT ONE POINT JOBLESS WORKERS ROAMED THE COUNTRY DESTROYING NEW MACHINERY UNTIL THEY WERE SUBDUED BY THE MILITIA IN THE MIDDLE OF THE 19TH CENTURY THERE WAS A NEW WAVE OF TECHNOLOGICAL CHANGE INTRODUCING SUCH THINGS AND THE RAILROAD AND THE TELEGRAPH PRODUCTION COSTS WERE SHARPLY REDUCED IN THE 1970S THE CURRENT INDUSTRIAL REVOLUTION BEGAN A MAJOR FACTOR ONCE AGAIN WAS TECHNOLOGY WHICH HELPED TO KEEP PRODUCTIVITY RISING UNEMPLOYMENT ROSE TOO THERE HAS ALSO BEEN A POLITICAL REVOLUTION AS MILTON FRIEDMAN THE HOOVER INSTITUTION ECONOMIST SAYS WITH THE POLITICAL REVOLUTIONS IN CENTRAL EUROPE ASIA AND ELSEWHERE PROBABLY SOMETHING LIKE 2 1/2 BILLION WORKERS HAVE NOW BEEN PUT TOGETHER IN A NEW INTERRELATIONSHIP WITH THE ADVANCED COUNTRIES ALL OF THE INDUSTRIAL REVOLUTIONS HAVE HAD A GREAT DEAL IN COMMON NEW MACHINERY AND NEW METHODS OF PRODUCTION HAVE MADE IT POSSIBLE FOR BUSINESSES TO INCREASE OUTPUT WITHOUT ADDING WORKERS THIS HAS LED TO OVERPRODUCTION HOW DO YOU DEAL WITH OVERPRODUCTION THE OBVIOUS ANSWER IS THAT YOU CUT PRODUCTION DOWNSIZING HAS BECOME A CATCHWORD IN RECENT YEARS BUT AS AN INDUSTRIAL STRATEGY IT IS CENTURIES OLD ONE STEP THAT BUSINESSMEN OFTEN TAKE IS TO TRY DESPERATELY TO HANG ON TO THE MARKETS THEY HAVE THAT OF COURSE IS PROTECTIONISM A COURSE THAT MANY BRITISH FIRMS WANTED TO PURSUE IN THE FIRST INDUSTRIAL REVOLUTION BUT A PIONEER ENGLISH ECONOMIST ADAM SMITH THOUGHT A BETTER ANSWER WAS TO WIDEN MARKETS BY FREEING TRADE FORTUNATELY FOR BRITAIN HIS IDEA INFLUENCED BRITISH POLICY IN THE 19TH CENTURY THE SECOND INDUSTRIAL REVOLUTION HAD NO ADAM SMITH THE SWEEPING TECHNOLOGICAL DEVELOPMENTS LED TO GREAT OVERPRODUCTION AND BUSINESSMEN IN THE US AND ELSEWHERE WERE STRONGLY PROTECTIONIST THEY MET THE CHANGES MAINLY BY SHUTTING DOWN SOME FIRMS AND MERGING OTHERS OUT OF EXISTENCE THIS WAS THE ERA OF THE SOCALLED ROBBER BARONS THEY SERVED A PURPOSE ALL RIGHT MICHAEL JENSEN IN A PAPER ON THE MODERN INDUSTRIAL REVOLUTION NOTES THAT THE FORMATION OF THE STANDARD OIL TRUST IN 1882 CONCENTRATED 25 OF THE WORLD'S KEROSENE PRODUCTION IN THREE REFINERIES AND WITHIN THREE YEARS REDUCED THE AVERAGE COST OF A GALLON OF KEROSENE BY 70 THE CURRENT REVOLUTION MAY HAVE NO ADAM SMITH BUT ALL OF AMERICA'S NOBEL LAUREATES IN ECONOMICS INCLUDING MILTON FRIEDMAN THINK NAFTA IS A GOOD IDEA THE TRADE AGREEMENT HAS THE SUPPORT OF MOST OF THE BUSINESS COMMUNITY IF YOU IGNORE ROSS PEROT WHICH ISN'T A BAD IDEA THAT'S NOT TO SAY THAT ECONOMISTS HAVE NOTHING CRITICAL TO SAY OF NAFTA IT'S NOT FREE TRADE SNAPS MR FRIEDMAN IT'S MANAGED TRADE MANY ECONOMISTS ARE QUICK TO POINT OUT THAT NAFTA WON'T BE TOO HELPFUL UNLESS IT IS BACKED UP BY A WORKING GENERAL AGREEMENT ON TARIFFS AND TRADE GATT IS FREE TRADE IN THE TRUEST SENSE SINCE IT REQUIRES MEMBERS TO EXTEND TO EVERYONE THE TRADE BENEFITS IT EXTENDS TO THE MOST FAVORED NATION THE EUROPEAN COMMUNITY WHEN IT WAS SET UP IN 1957 WAS AN EXCEPTION TO GATT'S RULE AND NAFTA WILL BE ANOTHER LIKE NAFTA THE EC WAS SUPPOSED TO FREE TRADE AMONG ITS MEMBERS BUT IMPOSE A COMMON BARRIER AGAINST THE OUTSIDE BUT THE FREE TRADE SUPPORT GENERATED BY GATT HEADED OFF ANY MAJOR TRADE TROUBLES WITH THE EC NOW HOWEVER GATT IS IN A SORT OF LIMBO UNTIL MEMBERS APPROVE THE URUGUAY ROUND A FUNCTIONING GATT IS NEEDED TO MAKE SURE THAT NAFTA DOESN'T DAMAGE THE DEVELOPING COUNTRIES IN LATIN AMERICA ASIA AND EUROPE SO THE SITUATION IS HOLDING MR CLINTON'S FEET TO THE FIRE HOW MUCH POLITICAL CAPITAL WILL HE BE WILLING TO RISK TO PUSH EUROPE THE MAIN GATT ROADBLOCK TO A SETTLEMENT OF URUGUAY DISAGREEMENTS HE MIGHT REMIND SOME OF HIS LABORUNION FRIENDS THAT INDUSTRIAL DOWNSIZING IS ONLY ONE WAY OF DEALING WITH OVERPRODUCTION AS ADAM SMITH MADE CLEAR A BETTER WAY IS TO FIND AND DEVELOP NEW MARKETS SOMETHING THAT WILL BE A LOT EASIER IN A WORLD DEDICATED TO FREE TRADE MR FRIEDMAN SUMS UP IT IS TODAY POSSIBLE TO A GREATER EXTENT THAN AT ANY TIME IN THE WORLD'S HISTORY FOR A COMPANY TO LOCATE ANYWHERE TO USE RESOURCES FROM ANYWHERE TO PRODUCE A PRODUCT THAT CAN BE SOLD ANYWHERE THE OPPORTUNITIES ARE THERE WHAT WE HAVE TO DO NOW SAYS MR FRIEDMAN IS TO USE OUR INFLUENCE TO MAKE SURE GOVERNMENTS ARE NOT SHORTSIGHTED AND DO NOT SHORTCIRCUIT THE PROCESS 9311230067 931123 BUSINESS BRIEF SCIENTIFICATLANTA INC JONES INTERCABLE MCI TO TEST PHONE SERVICE ON CABLE LINES JONES INTERCABLE INC AND MCI COMMUNICATIONS CORP SAID THEY AGREED TO TEST A NEW PRODUCT DEVELOPED BY SCIENTIFICATLANTA INC THAT PROVIDES TELEPHONE SERVICE OVER CABLETELEVISION LINES THE TEST TO BE CONDUCTED IN ALEXANDRIA VA AND CHICAGO IS DESIGNED TO DEMONSTRATE THE VIABILITY OF CABLE SYSTEMS AS AN ALTERNATIVE TO TELEPHONE SYSTEMS AND IS SET TO BEGIN EARLY NEXT YEAR THE SOCALLED COACCESS NETWORK WILL OFFER A RANGE OF SERVICES NOT POSSIBLE ON TELEPHONE LINES EXECUTIVES OF THE THREE COMPANIES SAID USERS FOR INSTANCE WILL BE ABLE TO MAKE PHONE CALLS WHILE RECEIVING FAXES THE DEVICE ALSO WILL PROVIDE INTERACTIVE GAMES AND ALLOW CUSTOMERS TO ORDER PAYPERVIEW MOVIES OVER CABLE WIRES ACCORDING TO EXECUTIVES AT SCIENTIFICATLANTA AN ELECTRONICS MANUFACTURER BASED IN NORCROSS GA MCI IS A TELECOMMUNICATIONS COMPANY BASED IN WASHINGTON DC AND JONES INTERCABLE A CABLETV OPERATOR IS BASED IN ENGLEWOOD COLO 9311230066 931123 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO AIR TREADS TO SELL A BUSINESS TO UNIT OF ALLIEDSIGNAL INC GOODYEAR TIRE & RUBBER CO SAID ITS AIR TREADS INC UNIT SIGNED AN AGREEMENT TO SELL ITS AIRCRAFT WHEEL AND BRAKE REFURBISHING BUSINESS TO AIRCRAFT LANDING SYSTEMS SOUTH BEND IND A UNIT OF ALLIEDSIGNAL INC TERMS WEREN'T DISCLOSED GOODYEAR BASED IN AKRON OHIO SAID THE SALE INCLUDES INVENTORY AND EQUIPMENT OF AIR TREADS' WHEEL AND BRAKE SERVICE OPERATIONS IN DALLAS KINGMAN ARIZ ALLENTOWN PA AND MOERFELDEN GERMANY AIR TREADS WILL CONTINUE TO OPERATE AIRCRAFT TIRE RETREADING PLANTS ITS OTHER BUSINESS IN SIX LOCATIONS WORLDWIDE THE COMPANY EXPECTS THE TRANSACTION TO BE COMPLETED BY THE END OF THE FOURTH QUARTER PROCEEDS FROM THE SALE WILL BE USED TO PAY OFF DEBT GOODYEAR SAID 9311230064 931123 BUSINESS BRIEF CACI INTERNATIONAL INC REVISIONS ARE ANNOUNCED IN FIRM'S SELFTENDER OFFER CACI INTERNATIONAL INC SAID IT REVISED THE TERMS OF ITS SELFTENDER OFFER AS PART OF A PREVIOUSLY ANNOUNCED SETTLEMENT WITH PLAINTIFFS IN SHAREHOLDER LAWSUITS THE ARLINGTON VA INFORMATIONSYSTEMS AND SOFTWARE COMPANY IS NOW OFFERING TO BUY 13 MILLION SHARES OF COMMON STOCK AT 6 A SHARE CITING A SUBSTANTIAL INCREASE IN THE TRADING PRICE OF THE COMPANY'S COMMON STOCK SINCE THE ORIGINAL TERMS WERE SET IN SEPTEMBER THE COMPANY SAID IT WOULD BUY BACK 16 MILLION SHARES FOR 540 A SHARE IN ORDER TO SETTLE TWO SHAREHOLDER SUITS FILED IN 1991 IN DELAWARE CHANCERY COURT ALSO AS PART OF THE REVISED AGREEMENT CACI AGREED TO INCREASE THE SIZE OF ITS BOARD TO NINE FROM A PREVIOUSLY AGREED SEVEN IN NASDAQ STOCK MARKET TRADING CACI SHARES FELL 125 CENTS OR 21 TO CLOSE AT 575 A SHARE 9311230062 931123 REVIEW & OUTLOOK EDITORIAL PHILLY OUTVOTES JERSEY FOR ALL THE OUTRAGE VENTED OVER ED ROLLINS'S RETRACTED CLAIMS THAT HE DISCOURAGED MINORITY VOTING IN NEW JERSEY THERE'S A FAR MORE WELLDOCUMENTED CASE OF MINORITY VOTERS BEING PRESSURED THIS MONTH INTO CASTING IMPROPER ABSENTEE BALLOTS IN NEIGHBORING PHILADELPHIA IT'S QUITE AN AMAZING TALE AND FOR NATIONAL MEDIA STILL LOST DRIVING AROUND NEWARK AND PATERSON IN SEARCH OF THE ROLLINS LUCRE WE OFFER A ROADMAP TO A REAL STORY THE PHILADELPHIA INQUIRER HAS INTERVIEWED MORE THAN 150 MINORITY VOTERS WHO CLAIM THEY WERE MISLED BY DEMOCRATIC WORKERS INTO VOTING ABSENTEE EVEN THOUGH THEY WEREN'T ELIGIBLE ONLY VOTERS WHO ARE ILL OR TRAVELING ON BUSINESS CAN LEGALLY VOTE ABSENTEE IN PENNSYLVANIA LATE LAST THURSDAY DEMOCRAT WILLIAM STINSON WAS SWORN IN ONLY AN HOUR AFTER HIS DISPUTED NOV 2 ELECTION AS A STATE SENATOR WAS CERTIFIED HIS SEATING GIVES THE DEMOCRATS 25 OF THE 50 STATE SENATORS AND PARTISAN CONTROL SINCE A DEMOCRATIC LIEUTENANT GOVERNOR CAN BREAK THE TIE REPUBLICANS CHARGE MASSIVE IRREGULARITIES AND ARE CHALLENGING THE ELECTION THEY NOTE THAT REPUBLICAN BRUCE MARKS LED BY 562 VOTES AMONG THOSE WHO VOTED ON ELECTION DAY HE LOST BECAUSE 1391 OF THE 1757 ABSENTEE BALLOTS WENT FOR DEMOCRAT STINSON IN ONE WARD HE WON 99 OF THE ABSENTEES NORMALLY ONLY ABOUT 900 ABSENTEE BALLOTS ARE CAST IN NORTH PHILADELPHIA'S SECOND SENATE DISTRICT AND THEY USUALLY BREAK EVENLY BUT DEMOCRATIC WORKERS FANNED OUT THROUGH HISPANIC NEIGHBORHOODS TELLING RESIDENTS ABOUT LA NUEVA FORMA DE VOTAR THE NEW WAY TO VOTE THEY CARRIED APPLICATIONS FOR ABSENTEE BALLOTS HAD VOTERS FILL THEM OUT AND RETURNED A FEW DAYS LATER WITH THE ACTUAL BALLOTS ANA LOPEZ A 19TH WARD COMMITTEEWOMAN SAYS SHE WAS DELUGED WITH CALLS FROM PEOPLE ASKING WHY THEY COULD VOTE AT HOME I TOLD THEM IT WAS ILLEGAL AND THAT THEY SHOULDN'T DO IT SHE SAYS BUT MANY VOTERS STILL CAST SUSPECT BALLOTS ARACELIS VELASQUEZ TOLD THE INQUIRER SHE FELT PRESSURED I TOLD THEM I CAN'T SEE WELL AND THAT I NEEDED TO GET MY GLASSES THEY SAID DON'T WORRY ABOUT IT JUST MAKE AN X RIGHT HERE AND SIGN' I DID IT VICTOR TORRES WAS ACCOSTED BY A MAN WHO INSISTED HE SIGN A FORM HE DID BUT UNCERTAIN ABOUT WHAT HE HAD SIGNED HE WENT TO THE POLLS AND VOTED ONLY LATER DID HE LEARN HE'D VOTED TWICE VOTER EVELYN ADAMES THOUGHT SHE WAS SIGNING FOR A PROGRAM WHERE THEY FIX THE BROKEN WINDOWS AND YOUR HEATING ZORAIDA RODRIGUEZ WAS TOLD SHE COULD VOTE AT HOME ALONG WITH HER BROTHER AND HER COMMONLAW HUSBAND BOTH OF WHOM ARE IN JAIL I DIDN'T THINK IT WOULD BE RIGHT BUT HE SAID ANYBODY CAN FILL OUT ANYBODY'S PAPER SO I DID MS RODRIGUEZ TOLD THE INQUIRER AS FOR HER OWN BALLOT SHE TOLD THE CAMPAIGN WORKER THAT SHE DIDN'T KNOW WHO TO VOTE FOR HE SAID WELL VOTE FOR THIS PERSON BECAUSE HE'S THE ONE I WORK FOR' SO I DID ELECTION RECORDS BEAR OUT HER STORY MR MARKS THE REPUBLICAN CANDIDATE CHALLENGED THE BALLOTS BUT THE CASE WAS HEARD BY JUDGE EUGENE MAIER WHOSE WIFE HAS A PATRONAGE APPOINTMENT WITH DEMOCRATIC MAYOR ED RENDELL MR STINSON THE DEMOCRATIC CANDIDATE IS A FORMER AIDE TO MR RENDELL THE STATE SUPREME COURT TOOK THE CASE AWAY FROM JUDGE MAIER BUT ONLY AFTER HE HAD ORDERED VIRTUALLY ALL THE ABSENTEE BALLOTS TO BE COUNTED BY NOW THE BALLOTS HAVE BEEN TAKEN OUT OF THE ENVELOPES THAT CONTAIN THE VOTERS' NAMES MAKING IT DIFFICULT TO IDENTIFY ANY SUSPECT ONES ON SUNDAY THREE VOTERS CAME FORWARD TO SAY THEIR SIGNATURES ON ABSENTEE BALLOTS WERE FORGED MEANWHILE US ATTORNEY GENERAL JANET RENO WHO CAMPAIGNED FOR JIM FLORIO HAS INVESTIGATORS COMBING NEW JERSEY LOOKING FOR WHAT APPEARS TO BE PHANTOM PAYOFFS SEE RELATED ARTICLE THE ROLLINS CLOUD'S SILVER LINING WSJ NOV 23 1993 NO INTEREST THOUGH IN THE DOCUMENTED POLITICAL EXPLOITATION OF HISPANICS JUST ACROSS THE RIVER IN PHILADELPHIA THE NEXT TIME THE VISITORS FROM THE BELTWAY TAKE THE TRAIN UP TO NEW JERSEY THEY SHOULD GET OFF FIRST AT PHILADELPHIA'S 30TH STREET STATION AND ASK SOME QUESTIONS 9311230061 931123 MGM SHOWTIME REACH 7YEAR PACT FOR PAYTV RIGHTS BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF METROGOLDWYNMAYER INC AND VIACOM INC'S SHOWTIME NETWORKS UNIT SAID THEY REACHED AN AGREEMENT CALLING FOR MGM TO GRANT SHOWTIME PAYTELEVISION RIGHTS TO AS MANY AS 150 MOTION PICTURES FOR SEVEN YEARS BEGINNING NEXT FALL TERMS WEREN'T DISCLOSED AND THE VALUE OF SUCH AGREEMENTS DEPENDS ON HOW THE FILMS PERFORM IN THEATERS BUT GENERALLY THESE TRANSACTIONS PAY ON AVERAGE ABOUT 4 MILLION TO 5 MILLION PER MOVIE WHICH COULD HAVE A VALUE OF 750 MILLION TO MGM IF THE FILMS ARE SUCCESSFUL ALTHOUGH SOME INDIVIDUALS CLOSE TO THE TRANSACTION SAID THE VALUE COULD BE NEARLY 1 BILLION IN AN INCREASINGLY COMPETITIVE PAYTV LANDSCAPE IT IS A GOOD TIME FOR MOVIE STUDIOS TO BE MAKING PAYTV DEALS AFTER YEARS OF ONLY TWO PLAYERS TIME WARNER'S HOME BOX OFFICE AND SHOWTIME THE BUSINESS NOW HAS A THIRD MAJOR OPERATOR THE ENCORE CHANNEL BACKED BY TELECOMMUNICATIONS INC IN THE PAST YEAR ENCORE SNAPPED UP RIGHTS TO MOST OF UNIVERSAL'S MOVIES FOR FIVE YEARS AND MOST OF WALT DISNEY CO'S FOR SEVEN STARTING IN 1997 UNIVERSAL IS A UNIT OF MCA INC A SUBSIDIARY OF MATSUSHITA ELECTRIC INDUSTRIAL CO ENCORE'S GROWTH HAS BEEN A FACTOR IN VIACOM'S ANTITRUST LAWSUIT AGAINST TCI MOREOVER HBO AND SHOWTIME HAVE BEEN WEATHERING STAGNANT SUBSCRIPTION RATES FOR YEARS NEW COMPETITION LOOMS FROM VIDEO ON DEMAND WITH A LIMITED SUPPLY OF FRESH HOLLYWOOD FILMS AND THE UPCOMING LOSS OF DISNEY'S SLATE SHOWTIME LACKED A MAJOR STUDIO DEAL EXCEPT FOR SONY CORP'S TRISTAR UNIT HBO HAS A LOCK ON FILMS BY TIME WARNER'S WARNER BROS NEWS CORP'S TWENTIETH CENTURY FOX UNIT IS NOW HEADED BY A FORMER SHOWTIME EXECUTIVE BUT ITS HBO AGREEMENT DOESN'T EXPIRE UNTIL 1997 TWO OF SHOWTIME'S MAJOR SUPPLIERS NEW LINE CINEMA AND CASTLE ROCK ARE BEING ACQUIRED BY TURNER BROADCASTING SYSTEM INC WHICH AS A CABLE COMPANY MAY HAVE ITS OWN IDEAS ABOUT PAY TV SHOWTIME CAN HOPE THAT ITS VIACOM PARENT SUCCEEDS IN ITS ATTEMPT TO ACQUIRE PARAMOUNT COMMUNICATIONS INC WHICH WOULD EFFECTIVELY RULE OUT THE RENEWAL OF PARAMOUNT'S CURRENT PAYTV PACT WITH HBO THE AGREEMENT ALSO CALLS FOR MGM AND SHOWTIME TO COFINANCE A SLATE OF MADEFORPAYTV MOVIES THE MGM AGREEMENT WON'T INCLUDE FILMS PRODUCED BY CAROLCO PICTURES INC WHICH MGM HAS THE RIGHT TO DISTRIBUTE IN THEATERS BUT WHICH ENCORE SIGNED UP FOR PAY TELEVISION EARLIER THIS YEAR MGM HAS HAD A PREVIOUS PAYTV AGREEMENT WITH SHOWTIME SINCE 1989 BUT IT ONLY COVERED 33 FILMS MGM OWNED BY FRENCH STATEOWNED BANK CREDIT LYONNAIS SA IS RAMPING UP PRODUCTION UNDER NEW CHAIRMAN FRANK MANCUSO AFTER YEARS OF DWINDLING OUTPUT AND MR MANCUSO SAID HE SEES THE AGREEMENT AS A MAJOR STEP IN THE STUDIO'S REHABILITATION