CRAY RESEARCH INC SAID THAT A COMPETITOR'S PROTEST OF A GOVERNMENT SUPERCOMPUTER CONTRACT AWARD WAS DENIED GIVING CRAY THE 14 MILLION JOB AS PREVIOUSLY REPORTED CRAY COMPUTER CORP COLORADO SPRINGS COLO HAD PROTESTED THE AWARD OF THE CONTRACT BY THE DEFENSE NUCLEAR AGENCY THE BIG COMPUTER IS TO BE INSTALLED AT LOS ALAMOS NATIONAL LABORATORY IN NEW MEXICO CRAY RESEARCH THE SUPERCOMPUTER MARKET LEADER WHICH IS BASED IN EAGAN MINN SPUN OFF CRAY COMPUTER AS A SEPARATE COMPANY IN 1989 BOTH COMPANIES WERE FOUNDED BY SEYMOUR CRAY WHO NOW HEADS CRAY COMPUTER CRAY COMPUTER HAS YET TO SELL A SUPERCOMPUTER AND THE DEFENSE NUCLEAR AGENCY JOB WAS CONSIDERED ONE OF ITS BRIGHTEST PROSPECTS MR CRAY RECENTLY SAID THAT HE EXPECTS TO COMPETE SUCCESSFULLY FOR AT LEAST ONE OF AN ESTIMATED DOZEN SUPERCOMPUTER CONTRACTS IN THE NEXT TWELVE MONTHS 9311230059 931123 BUSINESS BRIEF CHIBA BANK UNCONSOLIDATED PRETAX PROFIT FELL 28 IN FISCAL FIRST HALF CHIBA BANK A MAJOR JAPANESE REGIONAL BANK ON MONDAY POSTED A 28 DROP IN UNCONSOLIDATED OR PARENT ONLY PRETAX PROFIT FOR THE FISCAL FIRST HALF WHICH ENDED SEPT 30 ALONG WITH THE COST OF DISPOSING OF NONPERFORMING LOANS PROFIT WAS HIT BY SHRINKING MARGINS FROM BANKING AMID SLUGGISH DEMAND FOR FUNDS AND LOWER INTEREST RATES THE BANK POSTED PRETAX PROFIT OF 1187 BILLION YEN 1092 MILLION COMPARED WITH 1659 BILLION YEN IN THE LATEST FISCAL HALF CHIBA BANK'S NET OPERATING PROFIT A MEASURE OF PURE BANKING BUSINESS FELL 10 TO 2077 BILLION YEN FROM 2315 BILLION YEN IN THE YEAREARLIER PERIOD CHIBA BANK SAID THE BUSINESS CLIMATE IS LIKELY TO CONTINUE TO GET TOUGHER AS INTERESTRATE LIBERALIZATION REACHES COMPLETION AND OTHER FINANCIALMARKET CHANGES TAKE PLACE MONDAY THE BANK REVISED ITS FULLYEAR PRETAX PROFIT FORECAST DOWN BY 25 TO 21 BILLION YEN FROM 28 BILLION YEN 9311230058 931123 MARKETING & MEDIA PAUL ALLEN AGREES TO BUY 80 STAKE IN TICKETMASTER BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES MICROSOFT CORP COFOUNDER PAUL G ALLEN SAID HE AGREED TO ACQUIRE AN 80 STAKE IN TICKETMASTER CORP'S PARENT COMPANY AS PART OF A COMPLEX TRANSACTION THAT VALUES THE COMPUTERIZED TICKETSELLING COMPANY AT MORE THAN 300 MILLION TICKETMASTER TIES IN WITH THE VISION I'VE HAD FOR SOME TIME ABOUT THE INFORMATION SUPERHIGHWAY THE LEGENDARY SOFTWARE DESIGNER SAID PEOPLE WILL BUY TICKETS FROM THEIR HOMES THROUGH THEIR TELEVISION RECEIVERS OR PERSONAL COMPUTERS HE PREDICTED THE DEAL IS MY LARGEST INVESTMENT TO DATE THE PRITZKER FAMILY OF CHICAGO WHICH CURRENTLY OWNS AN 85 STAKE IN TICKETMASTER HOLDINGS GROUP LTD WILL RETAIN ABOUT 15 WHEN THE DEAL CLOSES ACCORDING TO A PERSON CLOSE TO THE TRANSACTION PARTLY FOR TAX REASONS MR ALLEN IS BUYING STOCK FROM THE COMPANY RATHER THAN FROM THE PRITZKERS LONGTIME TICKETMASTER CHIEF FREDRIC ROSEN WILL ALSO REDUCE HIS STAKE THE 40YEAROLD MR ALLEN WILL PLAY A MORE ACTIVE ROLE AT TICKETMASTER THAN THE PRITZKERS WHO GAVE THE STRONGWILLED MR ROSEN FREE REIN MR ALLEN WILL ASSUME THE CHAIRMAN'S POST FROM MR ROSEN WHO SIGNED A NEW LONGTERM PACT WITH THE COMPANY AND WILL REMAIN PRESIDENT AND CHIEF EXECUTIVE OFFICER I DON'T EXPECT MANY THINGS WILL CHANGE AS TO HOW THE BUSINESS RUNS MR ROSEN SAID IN AN INTERVIEW I PRIDE MYSELF ON BEING A GOOD CEO WHO UNDERSTANDS OPERATIONS AND MARKETING MR ROSEN ADDED BUT TO CONTINUE OUR SUCCESS WE NEEDED SOMEONE LIKE MR ALLEN WHO COULD GUIDE US THROUGH THE NEW TECHNOLOGIES MR ALLEN SAID HE EXPECTS TO DEVOTE SUBSTANTIAL TIME TO TICKETMASTER MOSTLY WORKING OUT OF AN OFFICE IN BELLEVUE WASH TICKETMASTER NEEDS TO LINK UP WITH TELEPHONE COMPANIES CABLE COMPANIES AND OTHER PLAYERS ALONG THE INFORMATION HIGHWAY MR ALLEN SAID WE'VE ALREADY BEEN HAVING SOME DISCUSSIONS SOME OF THOSE THINGS HAVE BEEN ON HOLD PENDING THIS TRANSACTION MR ALLEN ADDED HE EXPECTS HIS INVESTMENT TO CLOSE EARLY NEXT YEAR TICKETMASTER THIS SUMMER LAUNCHED A VENTURE IN CHICAGO WITH TRIBUNE CO AND AMERICA ONLINE INC A VIENNA VA COMPUTER SERVICES PROVIDER IN WHICH CONSUMERS CAN BUY TICKETS TO SPORTS AND OTHER EVENTS THROUGH THEIR PERSONAL COMPUTERS TRIBUNE CO OWNS THE CHICAGO TRIBUNE THE CHICAGO CUBS BASEBALL TEAM AND VARIOUS CABLE TELEVISION AND BROADCASTING OPERATIONS MR ALLEN WHO LEFT MICROSOFT MANAGEMENT IN 1983 OWNS THE PORTLAND TRAILBLAZERS BASKETBALL TEAM AND HAS INTERESTS IN AMERICA ONLINE AS WELL AS OTHER MULTIMEDIA AND COMMUNICATIONS CONCERNS DURING MR ROSEN'S TENURE AT TICKETMASTER THE LOS ANGELESBASED CONCERN HAS GROWN FROM A SMALL TICKETSELLING OPERATION TO THE INDUSTRY'S DOMINANT PLAYER WITH ANNUAL REVENUE OF ABOUT 13 BILLION I WANT TO DOUBLE OR TRIPLE THE SIZE OF THE COMPANY IN THE NEXT FIVE YEARS HE SAID MR ALLEN'S INVOLVEMENT IS ALSO AN IMPORTANT EVENT IN MR ROSEN'S FINANCIAL LIFE AS A MINORITY SHAREHOLDER THE 49YEAROLD EXECUTIVE WILL RECEIVE SIZABLE COMPENSATION FROM THE DEAL THE PERSON KNOWLEDGEABLE ABOUT THE TRANSACTION SAID ADDING THAT MR ROSEN WILL CONTINUE TO HAVE A SIGNIFICANT ECONOMIC STAKE IN THE COMPANY 9311230057 931123 ECONOMY LEADING INDEX TO BE PREPARED BY NEW METHOD AGENCY GOAL IS A BETTER JOB OF PREDICTING CHANGES IN ECONOMY'S DIRECTION BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMMERCE DEPARTMENT IS REVISING THE FORMULA USED TO CALCULATE ITS MUCHMALIGNED INDEX OF LEADING ECONOMIC INDICATORS HOPING THE NEW MEASURE DOES A BETTER JOB OF PREDICTING TURNING POINTS IN THE ECONOMY UNDER THE NEW FORMULA TO BE USED FOR THE FIRST TIME WHEN THE INDEX FOR OCTOBER IS RELEASED ON DEC 3 SLIGHT CHANGES IN THE MONTHLY READING ARE MORE IMPORTANT THAN THEY HAVE BEEN SAID THE CHIEF OF THE DEPARTMENT'S BUSINESS OUTLOOK DIVISION GEORGE GREEN THE INDEX HASN'T GIVEN MUCH ADVANCE WARNING OF RECESSION LATELY TURNING DOWN ONLY TWO MONTHS AHEAD OF THE RECESSION THAT BEGAN IN JULY 1990 HAD IT BEEN USING THE NEW FORMULA THE DEPARTMENT SAID IT WOULD HAVE CALLED THE START OF THE RECESSION 18 MONTHS IN ADVANCE THE NEW INDEX WILL CONSIST OF THE SAME 11 ECONOMIC MEASURES WITH ONLY SLIGHTLY DIFFERENT WEIGHTS BUT THE DEPARTMENT IS MAKING THE METHODOLOGICAL CHANGE BECAUSE THE CURRENT FORMULA TENDS TO DISTORT THE CYCLICAL PATTERN OF THE INDEX IN PERIODS OF SLOW GROWTH SUCH AS THE CURRENT EXPANSION MR GREEN WROTE IN AN ESSAY TO BE PUBLISHED IN THE SURVEY OF CURRENT BUSINESS ALONG WITH 45 YEARS OF REVISED HISTORICAL DATA BECAUSE OF THE SWITCH A 1 SHIFT IN THE INDEXOR IN ITS SIBLINGS THE INDEXES OF COINCIDENT AND LAGGING INDICATORSIS ROUGHLY COMPARABLE TO CHANGES OF NEARLY 2 IN THE CURRENT INDEX THE DEPARTMENT SAID THE INDEX OF LEADING INDICATORS DATES BACK TO 1937 WHEN THENTREASURY SECRETARY HENRY MORGENTHAU ASKED THE PRIVATE NATIONAL BUREAU OF ECONOMIC RESEARCH TO DRAW UP A LIST OF STATISTICAL MEASURES THAT WOULD BEST INDICATE WHEN THE GREAT DEPRESSION WAS ENDING THE VARIOUS INDEXES WERE FIRST PUBLISHED IN 1938 THE COMPONENTS AND FORMULAS HAVE BEEN ALTERED SEVERAL TIMES SINCE MOST RECENTLY IN 1989 ON AVERAGE THE DEPARTMENT SAYS THE NEW IMPROVED INDEX TURNS DOWN 11 1/2 MONTHS BEFORE A RECESSION BEGINS AS A RULE OF THUMB SOME ECONOMISTS SAY THAT THREE STRAIGHT MONTHLY DECLINES IN THE INDEX PORTEND A RECESSION BUT THE INDEX SOMETIMES PREDICTS RECESSIONS THAT NEVER ARRIVE THE INDEX PEAKED IN THE FALL OF 1987 AND FELL IN THE LAST THREE MONTHS OF THAT YEAR BUT THE ECONOMY GREW 33 IN 1988 CHICAGO ECONOMIC FORECASTER EVELINA TAINER IN HER RECENT BOOK USING ECONOMIC INDICATORS TO IMPROVE INVESTMENT ANALYSIS SAYS THE INDEX GETS MORE ATTENTION FROM THE PRESS THAN FROM FINANCIAL MARKETS PRIMARILY BECAUSE IT IS BASED ON DATA THAT ARE WIDELY AVAILABLE IT HAS BEEN REVISED SEVERAL TIMES IN THE POSTWAR PERIOD AFTER IT FAILED TO IDENTIFY A TURNING POINT CORRECTLY ALTHOUGH IN RETROSPECT IT ALWAYS LOOKS GOOD SHE SAYS FOUR COMPONENTS WILL HAVE A BIT MORE WEIGHT IN THE NEW LEADING INDEX WEEKLY HOURS OF MANUFACTURING WORKERS AVERAGE NEW CLAIMS FOR JOBLESS BENEFITS NEW FACTORY ORDERS FOR CONSUMER GOODS AND MATERIALS AND CHANGES IN MANUFACTURERS' BACKLOGS OF ORDERS SIX WILL HAVE A BIT LESS WEIGHT CONSUMER EXPECTATIONS MONEY SUPPLY STOCK PRICES CHANGES IN COMMODITY PRICES BUILDING PERMITS FOR NEW HOUSES AND THE PACE AT WHICH VENDORS ARE DELIVERING TO FACTORIES THE WEIGHT OF THE OTHER COMPONENT ORDERS FOR PLANT AND EQUIPMENT WILL REMAIN THE SAME 9311230056 931123 BUSINESS BRIEF CIRCUS CIRCUS ENTERPRISES INC AMERICAN ENTERTAINMENT AGREES TO GAMBLING VENTURE CIRCUS CIRCUS ENTERPRISES INC LAS VEGAS SAID IT REACHED AN AGREEMENT IN PRINCIPLE WITH AMERICAN ENTERTAINMENT CORP TO DEVELOP AND OPERATE A RIVERBOAT GAMBLING FACILITY IN CHALMETTE LA NEAR THE NEW ORLEANS CENTRAL BUSINESS DISTRICT AMERICAN ENTERTAINMENT IS CONTROLLED BY JOSEPH H GEORGUSIS A SHOPPINGCENTER DEVELOPER CLYDE TURNER CIRCUS'S PRESIDENT SAID THE PARTNERS EACH WILL HOLD A 50 STAKE IN THE VENTURE AND CIRCUS WILL MANAGE IT AMERICAN ENTERTAINMENT RECEIVED A CERTIFICATE OF PRELIMINARY APPROVAL FROM THE LOUISIANA RIVERBOAT GAMING COMMISSION TO OPERATE A GAMBLING VESSEL AT THE CHALMETTE SITE THE PROJECT IS SUBJECT TO CONDITIONS INCLUDING A DEFINITIVE AGREEMENT BETWEEN CIRCUS AND AMERICAN ENTERTAINMENT AND THE RECEIPT OF LICENSING AND OTHER APPROVALS FROM STATE GAMBLING REGULATORS AND THE STATE POLICE OFFICE CIRCUS'S SHARES WERE DOWN 52 OR 175 AT 3173 IN LATE NEW YORK STOCK EXCHANGE TRADING 9311230055 931123 BUSINESS BRIEF SPECTRANETICS CORP ADVANCED INTERVENTIONAL MERGER PLAN IS CALLED OFF SPECTRANETICS CORP AND ADVANCED INTERVENTIONAL SYSTEMS INC DECIDED TO CANCEL THEIR MERGER PLANS AFTER GETTING A LOOK AT EACH OTHER'S BOOKS THEIR AGREEMENT HAD CALLED FOR SPECTRANETICS BASED IN COLORADO SPRINGS COLO TO ACQUIRE ADVANCED INTERVENTIONAL IRVINE CALIF FOR 278 MILLION IN STOCK THE MUTUAL WITHDRAWAL BY THE MEDICALPRODUCTS MAKERS WILL PUT THE COMPANIES BACK IN COURT IN A DISPUTE OVER PATENTS FOR EQUIPMENT USED TO UNBLOCK OBSTRUCTED ARTERIES SAID ROBERT E WALL CHIEF EXECUTIVE OF ADVANCED INTERVENTIONAL THE ACQUISITION ACCORD HAD PUT THE LITIGATION ON HOLD THE COMPANIES CITING A CONFIDENTIALITY AGREEMENT DECLINED TO SPECIFY WHAT PROMPTED THEIR CHANGE OF HEART BUT BOTH COMPANIES HAVE BEEN REPORTING LOSSES ADVANCED INTERVENTIONAL'S STOCK SANK ON THE NEWS FALLING 50 CENTS OR 24 AT 1625 IN NASDAQ STOCK MARKET TRADING SPECTRANETICS WAS UNCHANGED AT 275 9311230054 931123 BUSINESS BRIEF LITTON INDUSTRIES INC COMPANY CONFIRMS INQUIRY INTO ALLEGED OVERCHARGES LITTON INDUSTRIES INC IN BEVERLY HILLS CALIF CONFIRMED THAT FEDERAL AGENTS ARE INVESTIGATING ALLEGATIONS THAT THE COMPANY OVERCHARGED THE DEFENSE DEPARTMENT ON REPAIRS OF CERTAIN AIRCRAFT GYROSCOPES BUT SPOKESMAN ROBERT KNAPP IN THE COMPANY'S FIRST PUBLIC STATEMENT SPELLING OUT SOME DETAILS OF THE INQUIRY MAINTAINED THAT LITTON'S CONTRACTS WITH ITS MILITARY AND COMMERCIAL CUSTOMERS ALLOW INSTALLATION OF USED PARTS AS LONG AS THE REFURBISHED UNITS ARE OF EQUAL QUALITY AND PERFORM THE SAME FUNCTION AS THE ORIGINAL DEVICES THE COMPANY'S PROCEDURES OVER THE YEARS MR KNAPP SAID WERE DESIGNED TO SHORTEN REPAIR TIME AND REDUCE REPAIR COSTS IN TOTAL COMPLIANCE WITH CONTRACTUAL REQUIREMENTS AS REPORTED EARLIER FEDERAL AGENTS ARE CONDUCTING A CRIMINAL INVESTIGATION OF GYROSCOPE REPAIRS AT THE COMPANY'S WOODLAND HILLS CALIF FACILITIES GOING BACK TO THE MID1980S 9311230053 931123 BUSINESS BRIEF NINTENDO CO US SUBSIDIARY PREDICTS RISE OF 17 IN 4THQUARTER SALES NINTENDO OF AMERICA INC REDMOND WASH PREDICTED THAT BOOMING CHRISTMAS DEMAND FOR ITS VIDEO GAMES AND PLAYERS WILL GENERATE A 17 JUMP IN RETAIL SALES IN THE LAST QUARTER OF THE YEAR THE COMPANY THE US UNIT OF NINTENDO CO OF KYOTO JAPAN SAID IT EXPECTS RETAIL SALES OF 275 BILLION IN THE FOURTH PERIOD COMPARED WITH 235 BILLION A YEAR EARLIER NINTENDO OF AMERICA SAID IT EXPECTS 44 MILLION SUPER NINTENDO ENTERTAINMENT SYSTEMS AND 22 MILLION PORTABLE GAME BOY UNITS TO BE SOLD ALONG WITH 35 MILLION GAMES THE COMPANY PREDICTED ITS RETAIL SALES FOR THE FISCAL YEAR ENDING MARCH 31 WILL RISE 17 TO 5 BILLION DESPITE THE UNIT'S CONTINUING GROWTH ITS PARENT COMPANY RECENTLY REPORTED A 24 DROP IN PRETAX PROFIT FOR ITS FIRST HALF ENDED SEPT 30 TO 611 BILLION YEN 5621 MILLION FROM 8025 BILLION YEN SALES FELL 62 TO 26018 BILLION YEN FROM 27741 BILLION YEN THE PARENT IS STRUGGLING WITH THE YEN'S APPRECIATION AGAINST THE DOLLAR AND RECESSIONS IN JAPAN AND EUROPE 9311230052 931123 CONGRESS IS GETTING SERIOUS ABOUT RULES FOR DERIVATIVES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESSIONAL THREATS TO LEGISLATE CONTROLS ON THE FASTGROWING AND CONTROVERSIAL DERIVATIVES MARKET TOOK A FIRST STEP TOWARD REALITY REP JIM LEACH THE RANKING REPUBLICAN ON THE HOUSE BANKING COMMITTEE ANNOUNCED THAT HE'S PREPARING LEGISLATION TO TIGHTEN REGULATION OF DERIVATIVES ONE OF WALL STREET'S FASTESTGROWING PRODUCTS THE BILL WOULD BE THE FIRST ATTEMPT TO WRITE LAWS COVERING A MULTITRILLIONDOLLAR MARKET THAT'S HIGHLY PROFITABLE FOR BANKS AND OTHER DEALERS IN DERIVATIVES AND A TOPIC OF INCREASING CONCERN TO REGULATORS THE LEACH PROPOSAL WILL GET SERIOUS CONSIDERATION FROM CONGRESSIONAL COMMITTEES THAT ARE WORRIED ABOUT DERIVATIVES BECAUSE THEY DON'T UNDERSTAND THEM AND FEAR THAT BANK AND SECURITIES REGULATORS MAY NOT BE UP TO THE CHALLENGE OF SUPERVISING THE NEW PRODUCTS AT THE VERY LEAST THE PROPOSAL WILL PUT NEW PRESSURE ON GOVERNMENT REGULATORS TO STRENGTHEN THEIR GRIP ON DERIVATIVES ANY BILL THAT WE COME UP WITH WILL BE A GENERALFRAMEWORK BILL THAT ESTABLISHES A NEW INTERAGENCY COMMISSION TO DEVELOP COMPARABLE ACCOUNTING CAPITAL AND DISCLOSURE RULES FOR THE BANKS BROKERAGE FIRMS AND INSURANCE COMPANIES THAT DEAL IN DERIVATIVES MR LEACH SAID THE BROAD OUTLINES OF THE PROPOSAL DESCRIBED BY MR LEACH A LEADING CONGRESSIONAL CRUSADER FOR FINANCIAL PRUDENCE IS LIKELY TO WIN SUPPORT FROM ELEMENTS OF THE HOUSE BANKING COMMITTEE AND THE ENERGY AND COMMERCE COMMITTEE WHICH REGULATES THE SECURITIES AND EXCHANGE COMMISSION BUT SOME OF REP LEACH'S RECOMMENDATIONS ALREADY ARE STIRRING INDUSTRY FEARS OF MICROMANAGEMENT ONE GOAL OF THE BILL WOULD BE TO EXTEND EXPLICIT FEDERAL AUTHORITY OVER THE DERIVATIVE ACTIVITIES OF INSURANCE COMPANIES WHICH ARE CURRENTLY REGULATED AT THE STATE LEVEL THE LEACH LEGISLATIVE PROPOSAL IS BASED ON A 900PAGE STUDY RELEASED YESTERDAY ON THE OPERATION AND REGULATION OF DERIVATIVES MEMBERS OF THE INDUSTRY HAVEN'T HAD A CHANCE TO DIGEST THE STUDY BUT THEY REACTED QUICKLY TO THE POSSIBILITY OF LEGISLATION LEGISLATION IS WORRISOME TO THE EXTENT THAT IT MAY WELL CHANGE THE STRUCTURE OF THE MARKET TO THE DETRIMENT OF THE END USERS SAID JOSEPH BAUMAN HEAD OF BUSINESS DEVELOPMENT AT THE DERIVATIVES GROUP OF CITICORP'S CITIBANK UNIT AND CHAIRMAN OF THE INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION A TRADE GROUP THE LEACH STUDY CONTAINS 30 RECOMMENDATIONS FOR REDUCING THE RISKS OF DERIVATIVES WE CERTAINLY ENDORSE MANY OF THE RECOMMENDATIONS SAID DOUGLAS HARRIS THE SENIOR ADVISER ON DERIVATIVES TO THE COMPTROLLER OF THE CURRENCY BUT HE SAID THAT SOME OF THE RECOMMENDATIONS ARE NOVEL AND REPRESENT VERY CLEAR DEPARTURES FROM RECOMMENDATIONS MADE BY THE COMPTROLLER AS WELL AS OTHER BANK REGULATORS TO DATE THE FOUR FEDERAL BANK REGULATORY AGENCIES THE SEC AND THE COMMODITY FUTURES TRADING COMMISSION HAVE STRESSED THAT THE MANAGEMENT AND BOARDS OF BOTH DEALERS AND USERS OF DERIVATIVES MUST UNDERSTAND THE RISKS OF THE NEW INSTRUMENTS THEY ALL STRESS THE NEED FOR PARTICIPANTS IN THE DERIVATIVES MARKETS TO DEVISE MODELS SIMULATING THE RISK THEY WOULD FACE IF THERE WERE SHARP CHANGES IN INTEREST RATES STOCK PRICES AND OTHER STRESSES THE LEACH RECOMMENDATIONS PROPOSE A MUCH HIGHER CONFIDENCE LEVEL 99 FOR THESE TESTS THAN MANY MARKET PARTICIPANTS CURRENTLY USE SUCH A STANDARD WOULD REPRESENT A SIGNIFICANT BARRIER FOR SOME INSTITUTIONS MR HARRIS SAID THE REPORT STRESSES THAT DERIVATIVES HELP CONTROL RISK AND THEREFORE PRODUCE SUBSTANTIAL BENEFITS FOR THE FINANCIAL SYSTEM DERIVATIVE TRANSACTIONS AREN'T A ZEROSUM GAME THE STUDY SAID BOTH PARTIES IN A DERIVATIVE AGREEMENT MAY BENEFIT FROM THE TRANSACTION THE REPORT IN FACT RECOMMENDS THAT THE TREASURY DEPARTMENT CONSIDER USING DERIVATIVES TO IMPROVE THE EFFICIENCY OF MANAGING THE GOVERNMENT'S DEBT BUT MR LEACH SAID THAT IRONICALLY IF TREMORS EMERGE IN THE INTERNATIONAL FINANCIAL COMMUNITY A PRODUCT DESIGNED TO MODESTLY REDUCE RISK FOR AN INDIVIDUAL COMPANY OR INSTITUTION MAY QUANTUMLY INCREASE RISK FOR THE SYSTEM AS A WHOLE THE LEGISLATION HIS STAFF IS PREPARING WOULD INSTRUCT THE TREASURY OR THE FEDERAL RESERVE TO WORK TO HARMONIZE INTERNATIONAL STANDARDS FOR DERIVATIVES IN ADDITION THE BILL IS LIKELY TO PROPOSE THAT PRODUCTS BE REGULATED UNIFORMLY WHETHER ISSUED BY BANKS BROKERS OR INSURANCE COMPANIES ONE OF MR LEACH'S FEARS IS THAT THE LARGE PROFITS FROM DERIVATIVES WILL BEGIN TO ATTRACT SMALLER LESSQUALIFIED PARTICIPANTS TO A FIELD THAT'S CURRENTLY DOMINATED BY A HANDFUL OF MAJOR BANKS AND BROKERS IN ANALYZING 10 YEARS OF TRADING RESULTS QUARTERLY TRADING LOSSES WERE POSTED ONLY FOUR TIMES BY DERIVATIVES DEALERS ONCE BY JP MORGAN AND THREE TIMES BY FIRST CHICAGO THE REPORT SAID CUMULATIVE LOSSES INCURRED IN THOSE QUARTERS WERE 19 MILLION THESE WERE DWARFED BY THE TRADING REVENUES EARNED IN THE OTHER 36 QUARTERS EXAMINED 359 BILLION ALTHOUGH THESE FIGURES GIVE SOME COMFORT THAT RISKMANAGEMENT CONSTRAINTS HAVEN'T BEEN IGNORED IN THE PRIVATE SECTOR HISTORICAL EXPERIENCE ISN'T ALWAYS A GUIDE TO THE FUTURE ESPECIALLY WHEN A RELATIVELY NEW MARKET EXPLODES IN SIZE THE STUDY SAID WORSTCASE EXPOSURE OF 10 US BANK DEALERS AS OF JUNE 30 1993 ALL DOLLAR FIGURES IN MILLIONS 9311230051 931102 REVIEW & OUTLOOK EDITORIAL THE EMOTIONAL SPECIES ACT LET US INTRODUCE YOU TO THE BRUNEAU HOT SPRINGS SNAIL WHICH EARLIER THIS YEAR BECAME THE 615TH SPECIES TO BE LISTED BY THE FEDERAL GOVERNMENT AS WORTHY OF LIFETIME TENURE UNDER THE ENDANGERED SPECIES ACT AN AVERAGE BRUNEAU SNAIL IS THE SIZE OF A PENCIL POINT IT CAN BE DISTINGUISHED FROM OTHER SNAILS ONLY BECAUSE OF THE RELATIVE LARGENESS OF ITS SEXUAL ORGAN NONETHELESS THIS TINY IF WELLENDOWED FLYSPECK THREATENS TO SEVERELY LIMIT AGRICULTURE ALONG IDAHO'S SNAKE RIVER THE US FISH AND WILDLIFE SERVICE HAS MOVED TO CUT OFF 59 FARMS AND RANCHES FROM THEIR WATER RIGHTS TO AVOID LOWERING THE WATER LEVEL OF THE HOT SPRINGS WHERE THE SNAILS ARE FOUND THE FARMS INVOLVED REPRESENT HALF OF THE ECONOMIC ACTIVITY IN THE BRUNEAU AREA WHICH LOGGING FAMILIES IN THE NORTHWEST LEARNED CARRIES LITTLE WEIGHT IN ARGUMENTS WITH HIGHER LIFE FORMS SUCH AS OWLS OR SNAILS LOCAL FARMERS CONTEND THAT THE SPRINGS ARE BEING REPLENISHED NOW THAT SEVEN YEARS OF DROUGHT HAVE ENDED THEY HAVE FILED SUIT ASKING THAT THE SNAIL BE DELISTED THIS IS AN EMOTIONAL LISTING NOT A SCIENTIFIC ONE SAYS PAT TAKASUGI AN AREA FARMER HE SAYS IT IS LUDICROUS TO WORRY ABOUT A SNAIL THAT IS SO PROLIFIC THAT IT CAN BE FOUND IN CONCENTRATIONS OF MORE THAN 6000 SNAILS PER SQUARE FOOT THERE'S NO EVIDENCE ANY OTHER SPECIES IS DIRECTLY OR INDIRECTLY DEPENDENT UPON IT IT SURE WOULD BE GREAT IF OUR LAWS AGAINST SAY MURDER AND ASSAULT WERE ENFORCED WITH THE SAME RELIGIOUS ZEAL AS THE ENDANGERED SPECIES ACT THE ACT WAS PASSED 20 YEARS AGO TO OUTLAW THE WANTON KILLING OFF OF A SPECIES HOWEVER COURT INTERPRETATIONS HAVE HELD THAT IT TAKES PRIORITY OVER OTHER LAWS AND THAT SPECIES MUST BE PROTECTED IN ALL CASES REGARDLESS OF COST EVEN PARTIAL EXEMPTIONS FROM THE ACT AS IN THE CASE OF THE NORTHERN SPOTTED OWL CAN BE OBTAINED ONLY AFTER ARDUOUS APPEALS ENFORCEMENT OF THE ACT IS BEING EFFECTIVELY STEERED BY THE BANANA MOVEMENT BUILD ABSOLUTELY NOTHING ANYWHERE NEAR ANYTHING THE BRUNEAU FARMERS ARE DEFENDING THEMSELVES AGAINST THIS MYSTICAL LAW WITH PLUCK AND HUMOR THEY HELD A SNAIL RACE TO RAISE MONEY FOR THEIR LAWSUIT ADMITTING THAT NO ONE WOULD BE ABLE TO SEE THE CONTESTANTS IN AUGUST THEY OFFERED A 500 REWARD FOR EVIDENCE THE SNAILS EXIST OUTSIDE BRUNEAU SO FAR NONE'S BEEN FOUND THOUGH 125 OTHER COLONIES HAVE BEEN LOCATED IN THE AREA ADDING DRAMATICALLY TO THE THREE KNOWN TO THE FISH AND WILDLIFE SERVICE THE BRUNEAU SNAIL MAY REPRESENT A NEW EXTREME IN CONCERN FOR ENDANGERED SPECIES BUT NOT BY MUCH THE PROTECTIONS ACCORDED THE KANGAROO RAT EFFECTIVELY MAKE IT THE LARGEST LANDOWNER IN RIVERSIDE COUNTY CALIF ELSEWHERE IN CALIFORNIA THE COSTS OF SAVING THE SACRAMENTO DELTA SMELT COULD RUN IN THE BILLIONS SCIENTISTS THINK THERE MAY BE 100 MILLION SPECIES IN THE WORLD WITH ONLY 1 OF THEM YET HAVING A NAME WORLDWIDE WE MAY BE LOSING 50000 A YEAR NEARLY 4000 SPECIES IN THE US ARE CANDIDATES FOR FUTURE PROTECTION THAT NUMBER WOULD GROW IF CONGRESS COMPLETES APPROVAL OF THE CLINTON ADMINISTRATION'S PROPOSED NATIONAL BIOLOGICAL SURVEY MASSACHUSETTS DEMOCRAT REP GERRY STUDDS ITS CHIEF CONGRESSIONAL SPONSOR SAYS THE SURVEY WOULD HAVE A SIMPLE YET AWESOME MISSION CATALOG EVERYTHING THAT WALKS CRAWLS SWIMS OR FLIES AROUND THIS COUNTRY DR THOMAS LOVEJOY THE INTERIOR DEPARTMENT'S SCIENTIFIC ADVISER SAYS THE SURVEY'S FINDINGS WOULD DETERMINE DEVELOPMENT FOR THE WHOLE COUNTRY AND REGULATE IT ALL BECAUSE THAT IS OUR OBLIGATION AS SET FORTH IN THE ENDANGERED SPECIES ACT CONGRESSIONAL OPPONENTS FEAR THE SURVEY IS A TROJAN HORSE FOR THE EFFECTIVE TAKING OF PRIVATE PROPERTY WITHOUT COMPENSATION BUT DEMOCRATIC REP BILLY TAUZIN OF LOUISIANA HASN'T BEEN PERMITTED A VOTE ON HIS AMENDMENT TO REQUIRE THAT THE GOVERNMENT COMPENSATE LANDOWNERS IF THE SURVEY CAUSES A DROP IN THEIR LAND'S VALUE HE DID WIN APPROVAL OF AN AMENDMENT FORBIDDING THE USE OF ENVIRONMENTAL VOLUNTEERS TO CONDUCT THE SURVEY THE HOUSE NONETHELESS VOTED 253 TO 174 TO APPROVE 163 MILLION FOR THE SURVEY THE BIOLOGICAL SURVEY BILL NOW GOES TO THE SENATE WHERE OPPOSITION IS GROWING AND A FILIBUSTER IS POSSIBLE SOME OF THE ENDANGERED SPECIES ACT'S LONGTIME SENATE SUPPORTERS SAY THE ABSURD WAY IT IS ENFORCED EXEMPLIFIED BY THE BRUNEAU HOT SPRINGS SNAIL MEANS THAT CONGRESS HAS TO FIND A WAY TO PROTECT PRIVATE PROPERTY RIGHTS OREGON SENATOR MARK HATFIELD ONE OF THE ACT'S ARCHITECTS SAYS IT IS BEING APPLIED FAR BEYOND THE SCOPE OF WHAT ANY OF US WHO HELPED ADOPT IT INTENDED THOSE WORDS OF FEDERAL BLOAT COULD SERVE AS AN EPITAPH FOR MUCH OF WHAT WASHINGTON DOES IN OUR TIME FROM SNAILS TO HEALTH CARE SEE RELATED LETTER LETTERS TO THE EDITOR IF THE SNAILS SUFFER SO DO THE FARMERS WSJ NOV 23 1993 9311020184 YY93 MM11 9311230050 931123 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ROCHELLE SHARPE CHARITY WORK RAISES EMPLOYEE MORALE AND BOOSTS PRODUCTIVITY CORPORATEVOLUNTEER PROGRAMS CAUSE WORKERS TO TAKE PRIDE IN THEIR JOBS AND WORK MORE CLOSELY WITH COLLEAGUES COMPANIES FIND THE JEFFERSON GROUP A WASHINGTON LOBBYING FIRM SAYS PRODUCTIVITY INCREASED AFTER IT BEGAN COMMUNITYSERVICE PROGRAMS WORKERS GOT TO KNOW TOP MANAGEMENT BETTER AND FELT MORE COMFORTABLE APPROACHING THEM WITH NEW IDEAS MICHIGAN NATIONAL BANK EMPLOYEES SPONSOR A ONEWEEK HOMELESS SHELTER EACH YEAR KEYCORP CLOSED MOST OF ITS 800 BRANCHES ONE SEPTEMBER AFTERNOON SO STAFFERS COULD RENOVATE CHILDREN'S SHELTERS AND REPACKAGE 7 1/2 TONS OF CEREAL FOR A FOOD BANK SOME COMPANIES PLAN TO DO COMMUNITY SERVICE IN LIEU OF CHRISTMAS PARTIES NEW YORK CARES A VOLUNTEER GROUP SAYS 70 BUSINESSES ARE PARTICIPATING IN ITS PROGRAMS THIS YEAR COMPARED WITH ONLY A HANDFUL THREE YEARS AGO DISARRAY BESETS THE CLINTON EQUAL EMPLOYMENT OPPORTUNITY COMMISSION THE ADMINISTRATION HAS YET TO NAME A CHAIRMAN A SECOND COMMISSIONER'S JOB IS VACANT AS WELL AND THE GENERAL COUNSEL RECENTLY RESIGNED MEANWHILE THE AGENCY FACES A THICKET OF COMPLICATED POLICY QUESTIONS INVOLVING THE CIVIL RIGHTS AND AMERICANS WITH DISABILITIES ACTS BUSINESSES FOR INSTANCE CLAMOR FOR ADVICE ON WHEN THEY CAN ASK JOB APPLICANTS IF THEY ARE DISABLED THE AGENCY'S BACKLOG SWELLS TO 73000 CASES UP 20000 IN ONE YEAR THE DISABILITIES LAW ALONE ACCOUNTED FOR MORE THAN 16000 OF THE 88000 COMPLAINTS FILED IN FISCAL 1993 THE FIRST FULL YEAR IT WAS IN EFFECT SOME CIVILRIGHTS ADVOCATES SAY THE AGENCY MUST SET PRIORITIES IN HANDLING COMPLAINTS BUT ANY POLICY SHIFT WILL AWAIT A NEW CHAIRMAN WORKPLACE FLEXIBILITY IS SEEN AS A KEY TO BUSINESS SUCCESS GIVING EMPLOYEES MORE CONTROL OVER THEIR SCHEDULES INCREASES MOTIVATION WHILE HOLDING DOWN COSTS BUT MANY MANAGERS FEAR LOSING CONTROL WHILE OTHERS HAVE TROUBLE MEASURING OUTPUT OF FLEXTIME WORKERS MANAGERS UNDERSTAND THEY NEED TO DO SOMETHING BUT THEY DON'T KNOW WHAT TO DO SAYS ROBERT LAMBERT A STRIDE RITE VICE PRESIDENT STRIDE RITE AND EIGHT OTHER COMPANIES FORM FLEXGROUP A CONSORTIUM TO SHARE RESULTS OF RESEARCH AND PILOT PROJECTS EXPLORING WAYS TO PROMOTE FLEXIBILITY NEW WAYS TO WORK A NONPROFIT SAN FRANCISCO CONSULTING GROUP ORGANIZED THE EFFORT ONE IDEA A FLEXIBILITY AUDIT TO DETERMINE PROGRESS AND OBSTACLES SOME 41 OF PARENTS WITH YOUNG CHILDREN HAVE TURNED DOWN A JOB OR PROMOTION BECAUSE IT WOULD TAKE TIME FROM THEIR KIDS A SURVEY BY MASSACHUSETTS MUTUAL LIFE INSURANCE CO AND FAMILY FUN MAGAZINE FINDS SCROOGE ALERT ONE IN THREE EMPLOYEES IS DISAPPOINTED WITH GIFTS FROM BOSSES FOR JOBS WELL DONE ACCORDING TO A SURVEY BY AMERICAN EXPRESS CORPORATE GIFT CHEQUES AMONG THE WORST A PACK OF CIGARETTES A CARD WITH 50 CENTS INSIDE TIME OFF WITHOUT PAY A LOTTERY TICKET AND 10 GIFT CERTIFICATES WHERE YOU MUST SPEND 100 BEFORE YOU CAN REDEEM THE COUPON IN SICKNESS AND HEALTH COMPANIES THAT PROVIDE HEALTH COVERAGE FOR WORKERS AND THEIR SPOUSES COULD SEE MEDICAL COSTS DECLINE UNDER THE CLINTON HEALTH PLAN SAYS CONSULTANT TOWERS PERRIN THAT IS BECAUSE COMPANIES THAT DON'T COVER WORKERS WHOSE SPOUSES HAVE INSURANCE ELSEWHERE WOULD HAVE TO START CARRYING THEIR SHARE OF THE BURDEN FAMILY PREMIUMS WOULD BE CALCULATED ON A PERWORKER BASIS WARNING THIS WORKPLACE IS INFECTED WITH SEXUAL HARASSMENT PROCLAIM CARDS PRINTED BY MILWAUKEEBASED 9 TO 5 THE NATIONAL ASSOCIATION OF WORKING WOMEN WOMEN USE THE CARDS TO COMPLAIN ANONYMOUSLY ABOUT OFFENSIVE WORKPLACE BEHAVIOR THE CARDS OUTLINE SYMPTOMS OF WORKPLACE INFECTION SUCH AS HIGHER TURNOVER LOWER PRODUCTIVITY HIGHER ABSENTEEISM AND HIGHER LEGAL COSTS BOOSTING MORALE BECOMES A BIGGER PART OF EMPLOYMENT AGENCIES' DUTIES LEGALPLACEMENT SPECIALIST ROBERT HADLEY SPENDS MORE THAN HALF HIS TIME RESTORING JOB SEEKERS' CONFIDENCE MANY CLIENTS DON'T REALIZE THAT THE GLUT OF JOB APPLICATIONS LEADS FIRMS TO INTERVIEW MORE PEOPLE FOR EACH POSITION ONE FIRM HE SAYS SPENT FOUR MONTHS SEARCHING FOR THE PERFECT PARALEGAL ON THE OTHER HAND SOME APPLICANTS BLAME THE ECONOMY RATHER THAN THEMSELVES FOR THEIR UNEMPLOYMENT WOES IN BOSTON WINTER WYMAN & CO OFFERS FREE SEMINARS FOR DISTRESSED CLIENTS ITS BIGGEST CHALLENGE TO GET APPLICANTS TO THINK ABOUT ALTERNATIVE CAREERS SAYS PARTNER BRIAN HOFFMAN IN TEXAS THE LEGAL NETWORK TRIES TO GET TEMPORARY WORK FOR DISTRAUGHT JOB SEEKERS WHILE CL CARTER JR & ASSOCIATES SENDS CLIENTS ON EXPLORATORY INTERVIEWS TO BUILD CONFIDENCE DECEMBER IS A GOOD TIME TO JOB HUNT AS MANY COMPANIES LIKE TO HIRE BEFORE THE BUDGET YEAR ENDS AND OTHER JOB SEEKERS SUSPEND SEARCHES SAY GOODRICH & SHERWOOD CO CONSULTANTS THE CHECKOFF WOMEN IN JUST THREE OCCUPATIONS MECHANICS REGISTERED NURSING AND MISCELLANEOUS FOOD PREPARATION EARN MORE THAN THEIR MALE COUNTERPARTS THE BUREAU OF LABOR STATISTICS SAYS A TSHIRT IN A WASHINGTON STORE DECLARES I USED UP ALL MY SICK DAYS SO I CALLED IN DEAD NEW ADVICE BOOK FOR COLLEGE GRADS WHAT A COLLEGE SENIOR SHOULD KNOW WHEN THE BARREL IS EMPTY AND THE PARTY IS OVER 9311230049 931123 INTERNATIONAL BRIEF JGC CORP COMPANY'S PRETAX PROFIT TRIPLED IN FISCAL FIRST HALF JGC CORP A JAPANESE PLANT ENGINEERING CONCERN REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT MORE THAN TRIPLED TO 1890 BILLION YEN 1739 MILLION FROM 615 BILLION YEN FOR THE FISCAL FIRST HALF ENDED SEPT 30 AS A RESULT OF STRONG COSTCUTTING EFFORTS AND THE EFFICIENT USE OF OVERSEAS RESOURCES REVENUE FELL 15 TO 17643 BILLION YEN FROM 20640 BILLION YEN JGC SAID ECONOMIC CONDITIONS AT HOME AND ABROAD ARE LIKELY TO REMAIN SEVERE DURING THE FISCAL SECOND HALF BUT THE COMPANY SAYING IT WILL CONTINUE TO BOOST ITS OVERSEAS PROCUREMENT PREDICTED THAT PROFIT FOR THE FISCAL YEAR WILL RISE FROM THE YEAR BEFORE DESPITE A FALL IN REVENUE FOR THE LATEST FISCAL YEAR THE YEN'S APPRECIATION SHAVED JGC'S RETURNS ON ITS OVERSEAS EARNINGS WHEN TRANSLATED INTO LOCAL CURRENCY TERMS REVENUE FROM PLANT EXPORTS PLUNGED 20 TO 10697 BILLION YEN OR 61 OF OVERALL REVENUE 9311230048 931123 BUSINESS BRIEF SEARS ROEBUCK & CO ABOUT 15 MORE TO BE SPENT ON HOLIDAY ADS THIS SEASON SEARS ROEBUCK & CO SAID ITS MERCHANDISING GROUP WILL SPEND ABOUT 15 MORE THIS SEASON THAN IT DID A YEAR AGO ON HOLIDAY ADVERTISING WHILE DECLINING TO DISCLOSE SPECIFIC SPENDING PLANS THE CHICAGO RETAILER SAID IT WILL FEATURE A HOME FOR THE HOLIDAYS THEME IN MORE THAN 60 TELEVISION COMMERCIALS NEWSPAPER ADS AND CIRCULARS AND INSTORE POSTERS SEARS WILL LAUNCH THE CAMPAIGN ON THANKSGIVING DAY DURING ITS SPONSORSHIP OF THE TELEVISION PREMIERE OF THE FILM HOME ALONE ARTHUR C MARTINEZ THE MERCHANDISE GROUP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID SEARS'S AGGRESSIVE PROGRAMS AS WELL AS RECENT ENCOURAGING SIGNS OF INCREASED CONSUMER CONFIDENCE WILL HELP THE RETAILER EXCEED OUR SALES PLAN FOR THE HOLIDAYS 9311230047 931123 INTERNATIONAL BRIEF GROUPE AZUR FRENCH INSURER GIVES RIVAL CASH FOR A MANAGEMENT ROLE FRENCH MUTUAL INSURANCE COMPANY GROUPE AZUR HAS COME TO THE RESCUE OF ITS TOTTERING RIVAL GARANTIE MUTUELLE DES FONCTIONNAIRES PROVIDING A CASH INJECTION OF 17 BILLION FRENCH FRANCS 2856 MILLION IN EXCHANGE FOR A SIGNIFICANT MANAGEMENT ROLE IN THE LARGE LIFE AND CASUALTY INSURER GARANTIE MUTUELLE WHICH IS OWNED BY ITS POLICYHOLDERS AND NOT PUBLICLY QUOTED PLOWED INTO THE RED LAST YEAR DUE TO ITS AMBITIOUS BUT ULTIMATELY DISASTROUS ATTEMPTS TO DIVERSIFY OUT OF ITS CORE INSURANCE BUSINESS THE GROUP LOST 15 BILLION FRANCS IN 1992 ON PREMIUM INCOME OF 127 BILLION FRANCS UNDER THE TERMS OF MONDAY'S AGREEMENT AZUR WILL PAY 800 MILLION FRANCS FOR A 49 SHARE OF GMF'S MAIN LIFE INSURANCE SUBSIDIARY GMF VIE AND FOR SIGNIFICANT MINORITY STAKES IN TWO OTHER SMALLER GMF UNITS IN ADDITION AZUR WILL PAY 900 MILLION FRANCS IN EXCHANGE FOR GMF INVESTMENT CERTIFICATES THE DEAL APPEARS TO SATISFY AZUR'S DECLARED DESIRE TO INCREASE ITS SHARE OF THE LIFE INSURANCE MARKET TODAY AZUR WHICH DECLARED 1992 NET PROFIT OF 159 MILLION FRANCS DERIVES 66 OF ITS 53 BILLION FRANCS IN PREMIUM INCOME FROM PROPERTY AND CASUALTY INSURANCE 9311230046 931123 REVIEW & OUTLOOK EDITORIAL DUTIES AT THE FED THE FEDERAL RESERVE BOARD'S REJECTION OF AN ACQUISITION BY SHAWMUT NATIONAL CORP IS THE LATEST SIGN THAT WHAT MIGHT BE CALLED STATISTICALLY CORRECT LENDING IS TO BE THE LAW OF THE LAND THE FED REJECTED THE MERGER NOT BECAUSE OF OVERALL FINANCIAL CONSIDERATIONS BUT BECAUSE THREE GOVERNORS WERE UNSATISFIED WITH THE BANK'S HANDLING OF LOANS TO MINORITIES DISCRIMINATION IN LENDING PRACTICES OF COURSE IS A MATTER THAT NEEDS TO BE ADDRESSED BUT IT WOULD ALSO BE PRUDENT TO ENSURE THAT ANY REMEDIES MAKE ECONOMIC SENSE MERGERS SUCH AS THE ONE SHAWMUT PROPOSED WILL PRODUCE A SOUNDER BANKING SYSTEM AND TAXPAYERS ARE ULTIMATELY ON THE HOOK HERE THROUGH FEDERAL DEPOSIT INSURANCE AS WE SHOULD HAVE LEARNED FROM THE CONGRESSIONALLY DRIVEN S&L DEBACLE THE CREDITCREATING AMBITIONS OF THE FAIRLENDING LAWS AND THE COMMUNITY REINVESTMENT ACT CRA RAISE UNCERTAINTIES ABOUT LOAN QUALITY AND THUS THE POSSIBILITY OF MORE INSTITUTIONS GETTING IN TROUBLE IT'S REASON ENOUGH TO RECALL THAT THE FED'S OTHER SIGNIFICANT JOB BESIDES SETTING MONETARY POLICY IS TO MAINTAIN THE SOUNDNESS OF THE BANKING SYSTEM SHAWMUT IS THE LARGEST OF THE FEW MERGERS THE FED HAS REJECTED THIS YEAR AND THE VOTE WAS CLOSE 3 TO 3 TO APPROVE THE APPLICATION WHICH THEREBY FAILED THE FED'S POINT MAN ON MINORITYLENDING ISSUES IS GOVERNOR LAWRENCE LINDSEY WHO JOINED WITH ALAN GREENSPAN AND DAVID MULLINS IN REJECTING SHAWMUT HAD GOVERNOR JOHN LAWARE NOT RECUSED HIMSELF BECAUSE OF A CONFLICT THE RESULT MIGHT HAVE BEEN DIFFERENT BUT CLEARLY A HARDLINE FED MAJORITY IS IN LINE FOR THE FUTURE PROMARKET WAYNE ANGELL IS DUE TO BE REPLACED BY PRESIDENT CLINTON'S FIRST FED NOMINEE EARLY NEXT YEAR THE SHAWMUT CASE MR LINDSEY SAYS IS AN EGREGIOUS ONE HE ALSO VOTED AGAINST A CALIFORNIA ACQUISITION BY FIRST INTERSTATE BANK ON RACIAL GROUNDS HOWEVER AND LIKE IT OR NOT HE SAYS THE CRA IS ON THE BOOKS AND HE HAS THE DUTY TO ENFORCE IT THAT MEANS THAT SOME ECONOMICALLY DESIRABLE CONSOLIDATION IN THE BLOATED INDUSTRY WILL JUST HAVE TO WAIT THERE WILL BE MERGERS THAT WILL NOT TAKE PLACE THAT WOULD TAKE PLACE IN THE ABSENCE OF CRA HE ADMITS BUT IF IT IS A REGULATOR'S OBLIGATION TO APPLY THE LAW IT IS ALSO REASONABLE TO EXPECT MR LINDSEY AND MR GREENSPAN MR MULLINS AND THEIR COLLEAGUES TO SPEAK UP ABOUT THE INFERENCES BEING DRAWN FROM THE DATA THEY SHOULD TAKE THE LEAD IN DRAWING DISTINCTIONS BETWEEN WHAT ARE VALID PROBLEMS AND WHAT ARE PHONY CLAIMS TEASED OUT OF THE DATA MR LINDSEY MAY HAVE TRIED TO CLEAR THAT AIR EARLIER THIS MONTH IN DESCRIBING A MUCHDISCUSSED BOSTON FED STUDY TO THE HOUSE BANKING COMMITTEE IT CONCLUDED THAT ON OBJECTIVE GROUNDS ALONE BLACK AND HISPANIC DENIAL RATES WOULD HAVE BEEN NEARLY DOUBLE THOSE OF WHITES HE SAID SOME ACCOUNTS HAVE NOT BEEN AS CAREFUL TO NOTE THAT AS WELL THERE IS THE FACT THAT DEFAULT RATES UNDER CURRENT LENDING PRACTICES ARE ROUGHLY EQUAL IN BLACK AND WHITE NEIGHBORHOODS AS MR LINDSEY CONFIRMS THAT BEING THE CASE ARE BANKS ADVISED TO ALTER THEIR PROCEDURES THE GAME FOR BANKERS NOW IS TO MAKE SURE THEIR LOANDENIAL RATES FOR CERTAIN CLASSES OF PEOPLE DON'T TRIGGER OFFICIAL SCRUTINY WHILE AT THE SAME TIME MEETING AN OBLIGATION TO DRAW IN MORE APPLICATIONS FROM GROUPS THAT FOR WHATEVER REASON HAVEN'T DONE MUCH BUSINESS WITH THEM IN THE PAST THE MEASUREMENTS AND STUDIES IN THIS AREA ARE THEMSELVES HOTLY DISPUTED LEADERSHIP IN BALANCING THE SOCIAL DESIRE FOR GREATER CREDIT OPPORTUNITY WITH THE ECONOMIC IMPORTANCE OF A VIABLE BANKING SYSTEM IS LIKELY TO REQUIRE SOME UNPOPULAR STANDS IF THE PRESSURES ON AN INDUSTRY AS SENSITIVE AS BANKING BECOME WHOLLY POLITICAL FINANCIAL DANGERS WILL RISE BANKS HAVE RISKS ENOUGH WHILE THEY'RE USING LOWER INTEREST RATES TO SHORE UP BALANCE SHEETS AND SEARCHING FOR NEW PRODUCTS WITH WHICH TO COMPETE AGAINST LESSREGULATED SOURCES OF CAPITAL AND INSTRUCTION ON WHERE THEY SHOULD LEND IS NOT THE ONLY PRESSURE THEY'RE EXPERIENCING THEIR ATTEMPTS TO BRANCH INTO MUTUAL FUNDS ARE RAISING HACKLES AT THE SEC AND WITH ED MARKEY A POWERFUL CONGRESSMAN FROM MASSACHUSETTS WHO FETTERS INNOVATION IN EVERY INDUSTRY HE CAN GET HIS HANDS ON BANKERS' USE OF DERIVATIVE FINANCIAL INSTRUMENTS TO HEDGE THEIR EXPOSURES HAS OTHER PESKY OVERSEERS IN A DITHER AND THE NEW OR HIGHER FEES THAT BANKS HAVE IMPOSED ON THEIR CUSTOMERS TO BOOST MARGINS HAVE STIRRED UP CONTROVERSY BY REDEFINING THE RESPONSIBILITY UNDER BANKING CHARTERS TO SERVE COMMUNITIES LEGISLATION LIKE THE CRA EXTENDED BANKING REGULATION BEYOND THE TRADITIONAL BOUNDS OF SAFETY AND SOUNDNESS BUT IT DID NOT CONSIGN POLICYMAKERS TO REFLEXIVE RELIANCE ON POLITICALLY TINGED ARGUMENTS AND NUMBERS IF THAT WAS NOT WHAT DROVE THE SHAWMUT DECISION THEN IT LIKELY WILL FIGURE IN CASES TO COME NEITHER FOR THAT MATTER SHOULD THE REST OF THE BANKMANDATE AGENDA GO THROUGH WITHOUT WITNESS BEING BORNE BY THOSE ENTRUSTED WITH THE CARE OF A VITAL AMERICAN FUNCTION 9311230045 931123 LEISURE & ARTS CHASING BUTTERFLIES FROM FRANCE TO FLORIDA BY GAIL KING VANNES FRANCE VANNES SURELY HAS MORE BUTTERFLIES NOW THAN AT ANY TIME SINCE THE 15TH CENTURY BACK THEN A SWARM OF WHITE BUTTERFLIES HOVERED AROUND THE WINDOWSILL OUTSIDE ST VINCENT'S DEATHBED AND AT HIS LAST BREATH SWOOPED HIS SAINTLY SOUL HEAVENWARD VANNES NEWEST BUTTERFLY SWARMS FLIT THROUGH BUTTERFLY GARDEN A TOURIST ATTRACTION HERE ON BRITTANY'S GULF OF MORBIHAN TWO OR THREE THOUSAND ARRIVE WEEKLY FROM A LONDON PUPAE SUPPLIER WHO COLLECTS THEM FROM BREEDERS IN FRANCE MALAYSIA AND SOUTH AMERICA THESE BUTTERFLIES ARE NOT FREE PRESENTDAY BUTTERFLIES ARE A MONEYMAKING AFFAIR FOR BREEDERS FOR BROKERS FOR MERCHANDISERS AND PRESUMABLY FOR THE PARIS ARCHITECT WHO OWNS BUTTERFLY GARDEN BUT AS A BUSINESS BUTTERFLIES CAN BE IFFY WEATHER INTERFERES BLUE MORPHOS WERE IN SHORT SUPPLY THIS SPRING BECAUSE OF COOL WEATHER IN SOUTH AMERICA AND BREEDERS AND BROKERS CAN MANIPULATE PRICES I PAID 450 TO WANDER AMONG THE BUTTERFLIES IN THE METALCLAD GLASSTOP TROPICAL GARDEN IL EST INTERDIT DE TOUCHER AUX PAPILLONS THE MOST OBVIOUS SIGN SAYS AND SO I RESISTED THE TEMPTATION TO PICK UP A BUTTERFLY BUT THE BUTTERFLIES HAVE NO SUCH RESTRICTIONS AN EXQUISITE CORAL CREATURE LIT ON MY SLEEVE WHILE I STARED AT AN EXCEPTIONALLY RAGGED BANANA PLANT NELLY LE MEUR THE UNIVERSITY STUDENT WHO MANAGES BUTTERFLY GARDEN EXPLAINED THAT A FEW BUTTERFLIES BREED IN THE GARDEN AND SOME OF THEIR LARVAE EAT BANANA LEAVES ARMED WITH THE ONE AVAILABLE ENGLISHLANGUAGE GUIDE SHEET AND WARNED BY MS LE MEUR THAT BECAUSE THE DAY WAS A BIT OVERCAST NOT ALL THE BUTTERFLIES WOULD BE ACTIVE I WENT BUTTERFLY HUNTING FIRST I SAW THE OWL A BIG BROWN BUTTERFLY FROM CENTRAL AND SOUTH AMERICA WHOSE PROGENY ACCOUNT FOR THE BEDRAGGLED BANANA LEAVES THEN I SPIED A BLUETOUCHED BROWN CLIPPER HANGING UNDER A HIBISCUS LEAF AN ORANGE FLAMBEAU PERCHED ATOP AN ORANGE LANTANA BLOSSOM A MAGNIFICENT RED AND BLACK RED HELEN SITTING ON A SCARLET FLOWER A BLACK AND EMERALD PARIS PEACOCK DINING ON A PINK FLOWER SCARLET SWALLOWTAILS DRIFTED AROUND THE LEMON TREES AND HELICONIINAE LITTLE BLACK WINGS ACCENTED WITH YELLOW OR ORANGE DARTED AND HOVERED AROUND ME AND THE PLANTS NO WHITE BUTTERFLIES I ASKED THINKING OF ST VINCENT'S HEAVENLY ESCORT MS LE MEUR POINTED OUT THE CLOSEST THING TO A WHITE BUTTERFLY A BLACKRIMMED WHITE MOCKER SWALLOWTAIL BUTTERFLIES ARRIVE HERE AS PUPAE WRAPPED IN COTTON THEIR DEVELOPMENT TO FULLBLOWN BUTTERFLIES PROVIDES A SIDESHOW IN SHALLOW CASES HUNG AGAINST THE GARDEN WALLS MOST BUTTERFLIES WILL FEED ON THE NECTAR OF ANY FLOWER THEY ALSO LIKE MASHED OVERRIPE BANANAS BUT THEIR CATERPILLARS ARE ONEPLANT FEEDERS MEANING THAT THE FEMALE BUTTERFLY MUST LAY HER EGGS ON THE SINGLE PLANT THAT WILL SATISFY HER RAVENOUS OFFSPRING THIS COMPLICATES BUTTERFLY GARDENING BECAUSE EACH SPECIES PREFERS A DIFFERENT PLANT WHILE IT IS POSSIBLE TO GARDENGROW BUTTERFLIES THE COMMERCIAL EXHIBITORS GENERALLY BUY WELLFED CATERPILLARS ALREADY CURLED UP IN THEIR COCOONS URBANIZATION OF THEIR ENVIRONMENT ALONG WITH PESTICIDES ESPECIALLY THOSE AIMED AT MOSQUITOES AND GYPSY MOTHS HAVE ELIMINATED SEVERAL BUTTERFLY SPECIES AND DRASTICALLY REDUCED THE WORLDWIDE POPULATION COLLECTING BUTTERFLIES TO PIN UP ON DISPLAY HAS LITTLE EFFECT ON BUTTERFLY NUMBERS BUTTERFLY NUTS MORE PROPERLY KNOWN AS LEPIDOPTERISTS LOOK WITH ALARM ON VANISHING SPECIES AND GO TO GREAT LENGTHS TO PROMOTE BUTTERFLY SURVIVAL CONVERSATIONS WITH FERVENT LEPIDOPTERISTS THE SORT WHO LOOK UPON COMMERCIAL EXHIBITS AS A SUBSPECIES OF DISNEYLANDIUS DID NOT PREPARE ME FOR AN AFTERNOON IN LEXINGTON KY A WOMAN IN FRONT OF ME ON A MAIN DRAG CAME TO A SCREECHING HALT SHE GOT OUT OF HER CAR CUPPED HER HANDS AROUND SOMETHING ON THE PAVEMENT WALKED OVER TO THE GRASS PURSED HER LIPS OPENED HER HANDS AND BLEW OUT A LARGE BLACK BUTTERFLY FOR THE LESS FERVENT COMMERCIAL GARDENS CAN BE A GOOD PLACE TO TAKE A NEW LOOK AT BUTTERFLIES IN THE US THERE ARE FOUR BUTTERFLY PARKS CYPRESS GARDENS AND BUTTERFLY WORLD BOTH IN FLORIDA CALLAWAY GARDENS IN GEORGIA AND MARINE WORLD AFRICA USA IN VALLEJO CALIF AND SOME PLACES LIKE BALD EAGLE STATE PARK IN CENTRAL PENNSYLVANIA HAVE ESTABLISHED PUBLIC BUTTERFLY GARDENS AND TRAILS BUTTERFLY WORLD IN COCONUT CREEK FLA IS THE LARGEST OF THESE PROJECTS THERE I FOUND SWARMS OF THE WHITE BUTTERFLIES I HAD NOT SEEN IN VANNES WHITE MORPHOS NEWLY EMERGED FROM COSTA RICAPRODUCED PUPAE WE'VE CREATED A SANCTUARY HERE WHERE PEOPLE CAN GET AWAY FROM BUSTLE AND HUSTLE EATING AND TV MR BOENDER SAYS WHILE BUTTERFLY WORLD IMPORTS 70 OF ITS SPECIMENS MR BOENDER IS ABLE TO BREED THE REST AND NOW HE IS EXPORTING PUPAE TO EXHIBITORS IN CANADA DENMARK SWITZERLAND AND THE NETHERLANDS IF YOU YEARN FOR BUTTERFLIES FLYING FREE PLANT SOME PENTAS AND LANTANA OR ORDER UP A READYMADE GARDEN SPRING HILL NURSERY 8005440294 OFFERS A SELECTION OF BUTTERFLYATTRACTING PLANTS FOR 2999 AND UP AND FLOWER AND GARDEN MAGAZINE 8006788025 WILL SEND YOU ITS BUTTERFLY SHAKE GARDEN SEEDS FOR 1295 MS KING IS A WRITER IN HENDERSON KY 9311230044 931123 WHAT'S NEWS WORLDWIDE THE HOUSE APPROVED CAMPAIGN FINANCE REFORM LEGISLATION LAWMAKERS VOTED 255175 TO OVERHAUL CAMPAIGN FINANCE LAWS BUT SIDESTEPPED NEW CURBS ON GIFTS FROM LOBBYISTS THE DEMOCRATIC BILL WOULD SET A VOLUNTARY LIMIT OF 600000 ON CAMPAIGN SPENDING PROVIDE GOVERNMENTFUNDED ADVERTISING VOUCHERS FOR THOSE WHO COMPLY WITH THOSE LIMITS AND CURB THE AMOUNT OF MONEY CANDIDATES CAN RECEIVE FROM POLITICAL ACTION COMMITTEES THE HOUSE ALSO DEFEATED AN EFFORT BY REPUBLICANS AND CONSERVATIVE DEMOCRATS TO CUT THE PROJECTED DEFICIT ANOTHER 90 BILLION OVER FIVE YEARS A LASTMINUTE BATTLE APPARENTLY DOOMED EFFORTS BY CONGRESS TO COMPLETE ACTION ON THE BRADY HANDGUN CONTROL BILL AND SEND IT TO CLINTON THIS WEEK SANCTIONS SHOULD BE DROPPED AGAINST YUGOSLAVIA IF THE BELGRADE GOVERNMENT PERSUADES SERBS IN BOSNIA TO ACCEPT AN INTERNATIONAL PEACE PLAN THE EUROPEAN COMMUNITY SAID SEPARATELY YUGOSLAVIA BLOCKED ALL UN AID CONVOYS INTO EASTERN BOSNIA WHILE UN OFFICIALS REPORTED STARVATION IN THE SOUTHWESTERN CITY OF MOSTAR THE SENATE ASKED A FEDERAL COURT TO ENFORCE A SUBPOENA FOR SEN PACKWOOD'S DIARIES ON GROUNDS THAT THE OREGON REPUBLICAN WITHHELD THEM FROM THE ETHICS COMMITTEE BECAUSE HE FEARED NEW DATA MIGHT BE DISCOVERED THE COMMITTEE IS INVESTIGATING ALLEGATIONS OF SEXUAL MISCONDUCT AND INTIMIDATION OF WITNESSES BY PACKWOOD A 100000 JURY AWARD WAS UPHELD BY A FEDERAL COURT IN BOSTON IN THE CASE OF A RHODE ISLAND WOMAN WHO WAS DENIED A JOB BECAUSE OF HER WEIGHT THE DECISION ENDORSING THE EEOC'S POSITION MARKED THE FIRST TIME THAT A FEDERAL APPEALS COURT HAS RULED THAT JOB DISCRIMINATION AGAINST OBESE PEOPLE IS ILLEGAL THE ONTARIO GOVERNMENT UNVEILED PROPOSED ANTISMOKING LEGISLATION THAT AIMS TO CUT CIGARETTE SALES IN THE PROVINCE IN HALF BY THE END OF THE DECADE THE MEASURE WOULD BAN THE SALE OF TOBACCO IN VENDING MACHINES AND PHARMACIES IT ALSO WOULD RAISE THE LEGAL AGE TO PURCHASE TOBACCO TO 19 FROM 18 EUROPEAN FINANCE MINISTERS CRITICIZED KEY ELEMENTS OF THE EC COMMISSION'S DRAFT DOCUMENT ON JOB CREATION ATTACKING ITS EMPHASIS ON NUMERICAL TARGETS WORKSHARING PROPOSALS AND INCREASED INDIRECT TAXES THE CRITICISM CAME TWO WEEKS BEFORE AN EC SUMMIT THAT WILL FOCUS ON THE COMMUNITY'S RISING JOBLESS RATE PHILIPPINE LEADER RAMOS MET WITH CLINTON AT THE WHITE HOUSE AND THE TWO PRESIDENTS DECLARED A NEW PARTNERSHIP AND PLEDGED TO COMPLETE A BILATERAL EXTRADITION TREATY WHICH HAS BEEN PROPOSED FOR DECADES RAMOS DEPARTS TODAY AFTER A TWOWEEK US VISIT AIMED AT BOOSTING AMERICAN INVESTMENT IN THE PHILIPPINES TWO PLO GENERALS VISITED THE OCCUPIED GAZA STRIP TO PREPARE FOR ISRAEL'S TROOP WITHDRAWAL PALESTINIAN AND ISRAELI OFFICIALS SAID THE DAYLONG FACTFINDING TOUR WAS SAID TO HAVE INCLUDED STOPS AT JEWISH SETTLEMENTS THE PHASED ISRAELI WITHDRAWAL FROM GAZA AND JERICHO IS DUE TO START DEC 13 EL SALVADOR'S PRESIDENT ANNOUNCED THAT AN INDEPENDENT COMMISSION WOULD BE SET UP TO INVESTIGATE A RASH OF RECENT KILLINGS ALLEGEDLY CARRIED OUT BY DEATH SQUADS THE UN WHICH IS OVERSEEING THE NATION'S PEACE PROCESS AFTER 12 YEARS OF CIVIL WAR HAD URGED CRISTIANI TO ESTABLISH SUCH A PANEL A UN TEAM DIDN'T FIND ANY CLEARCUT EVIDENCE THAT IRAQ USED POISON GAS TO ATTACK DISSIDENT SHIITE MUSLIMS IN SOUTHERN MARSHES BUT A FINAL CONCLUSION WILL REQUIRE LENGTHY LAB TESTS A UN PANEL SAID THE STATEMENT CAME AS IRAQ'S DEPUTY PRIME MINISTER BEGAN LOBBYING AT THE UN IN HOPES OF GETTING AN OIL EMBARGO LIFTED SOUTH AFRICA'S PRESIDENT OPENED WHAT IS EXPECTED TO BE THE LAST SESSION OF THE WHITEDOMINATED PARLIAMENT BY HAILING A PROPOSED NEW CONSTITUTION BUT RIGHTWING WHITES WHO OPPOSE THE DRAFT CONSTITUTION WHICH WILL LIKELY BRING THE AFRICAN NATIONAL CONGRESS TO POWER NEXT YEAR ACCUSED DE KLERK OF BETRAYING THE NATION'S WHITE MINORITY CENTRISTS AND COMMUNISTS BEGAN THEIR TELEVISION CAMPAIGNS IN RUSSIA ATTACKING PRESIDENT YELTSIN'S REFORMS AND HIS USE OF FORCE TO CRUSH A PARLIAMENTARY REVOLT ELECTIONS TO THE NEW FEDERAL ASSEMBLY ARE DUE TO TAKE PLACE IN THREE WEEKS 9311230043 931123 WORLD MARKETS TOKYO PRICES PLUNGE 31 ON ECONOMIC GLOOM AS STOCK MARKETS WORLDWIDE TAKE A DRUBBING A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES HERE PLUNGED 31 MONDAY AS GLOOM ABOUT THE JAPANESE ECONOMY PROMPTED INVESTORS TO PLEAD FOR GOVERNMENT HELP WORLDWIDE BOURSES TOOK A DRUBBING FROM PRESSURES RANGING FROM DIMMED HOPES FOR LOWER INTEREST RATES TO POLITICAL AND ECONOMIC DEVELOPMENTS IN TOKYO THE BENCHMARK NIKKEI 225STOCK AVERAGE CLOSED AT 1738484 DOWN 55635 POINTS AFTER SINKING 22513 POINTS FRIDAY MONDAY'S VOLUME WAS ESTIMATED AT 300 MILLION SHARES UP FROM 2639 MILLION SHARES IN THE PREVIOUS SESSION LOSING ISSUES OVERWHELMED GAINERS 104942 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSSUES PLUMMETED 4576 OR 297 TO 149383 IN THE SECONDSHARPEST DROP THIS YEAR AFTER A 5604POINT OR 325 RETREAT ON JUNE 21 THE NIKKEI'S LOSS WAS THE BIGGEST OF THE YEAR IN PERCENTAGE TERMS AND LEFT THE MARKET BELOW THE STARTING LEVEL OF A RALLY LAST MARCH IN THE PAST FOUR WEEKS THE NIKKEI HAS LOST 145 AND THE STEADY DECLINE HAS MANY TRADERS SAYING THE INDEX MAY SOON FALL BELOW ITS 1992 FINISHING LEVEL OF 1692495 IT COULD GO TO 16800 KEITH DONALDSON MARKET STRATEGIST AT SALOMON BROTHERS ASIA LTD SAID HE PEGGED MONDAY'S PLUNGE TO A BIT OF PANIC SELLING BY JAPANESE CORPORATIONS INVESTORS BLAME THE DECLINE ON THE GRIM ECONOMIC OUTLOOK AND WEAK CORPORATE EARNINGS FOR THE FIRST HALF ENDED SEPT 30 ANALYSTS WARNED THAT EVEN IF THE GOVERNMENT WERE TO TAKE IMMEDIATE STEPS TO BOOST THE ECONOMY THE STOCK MARKET HAS TAKEN SUCH A DRUBBING IN RECENT WEEKS THAT AN EARLY REBOUND IS UNLIKELY ALL WE CAN EXPECT ARE MEASURES THAT WILL KEEP THE MARKET FROM FALLING FURTHER SAID NOBUMITSU KAGAMI EXECUTIVE VICE PRESIDENT OF NOMURA INVESTMENT MANAGE MENT CO WHICH RUNS ONE OF JAPAN'S LARGEST MUTUAL FUNDS THERE'S A FEELING THAT THINGS WILL GET WORSE BEFORE THEY GET BETTER THE NIKKEI COULD HIT 16000 TRADERS WANT GOVERNMENT HELP IN THE FORM OF TAX CUTS INVESTMENT INCENTIVES FOR BUSINESS AND MORE HELP FOR JAPAN'S FINAN CIALLY TROUBLED BANKS THE GOVERNMENT WILL PROBABLY OPT FOR A TAX CUT FIRST A LARGE TAX CUT WOULD HAVE THE PRACTICAL RESULT OF COUNTERING FALLING WAGES BY GIVING CON SUMERS MORE MONEY TO SPEND BUT IT ALSO WOULD PROVIDE A PSYCHOLOGICAL BOOST FOR A STOCK MARKET STARVED FOR GOOD NEWS NOMURA IS A LONGTERM INVESTOR AND SO WE CAN AFFORD TO TAKE SHORTTERM RISKS SUCH AS BUYING EVEN AS STOCKS ARE TUM BLING MR KAGAMI SAID BUT WE DON'T WANT TO DO IT THE ECONOMY IS TOO UN CLEAR SOME ANALYSTS WONDERED WHETHER THE MOOD IN TOKYO WAS A LITTLE TOO DARK THERE'S BEEN A PROGRESSIVE BUILDUP OF BEARISH SENTIMENT JEFF BAHRENBURG EQUITY STRATEGIST AT MERRILL LYNCH JAPAN INC SAID ADDING THAT THE MOOD WAS SO SOUR THAT JUST A WHISPER OF ACTION FROM THE GOVERNMENT COULD MAKE THE MARKET GO UP FOR A SHORT WHILE THOUGH A SUSTAINED RECOVERY IS AT LEAST SEVERAL MONTHS AWAY ALONG WITH TAX CUTS HE SAID OTHER LIKELY GOVERNMENT MOVES TO PROMOTE A RECOVERY INCLUDE INTERESTRATE REDUCTIONS AND NEW POLICIES TO LET BANKS WRITE OFF MORE OF THEIR BAD DEBTS LONDON STOCKS DROPPED 12 AMID ANXI ETY ABOUT THE COMING BRITISH BUDGET FRANKFURT SHARES TUMBLED 24 ON SOURED HOPES ON INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10842 DOWN 169 REFLECTING LOWER MARKETS IN ALL REGIONS ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 17391 UP 069 OR 04 WITH PARAMOUNT COMMUNICATIONS OF THE US POSTING A 34 GAIN IN ITS LOCAL CUR RENCY HEAVY MACHINERY STOCKS TRAILED AT 10801 DOWN 406 OR 36 WITH OKUMA MACHINERY WORKS OF JAPAN SLIDING 10 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAVE UP 374 POINTS TO 30706 NEAR THE DAY'S LOWS THE FT 30STOCK INDEX FELL 294 POINTS OR 12 TO 23282 VOLUME WAS 4554 MILLION SHARES DOWN FROM 5144 MILLION SHARES IN THE PREVIOUS SESSION AND THE LOWEST SINCE OCT 11 AS BIG INVESTORS WERE RELUCTANT TO PARTICIPATE WITH BRITAIN'S BUDGET TO BE UNVEILED NEXT TUESDAY THE MARKET ANTICIPATED INVESTMENT TAX INCREASES AND A BASE LENDINGRATE CUT AS POSSIBLE AND FEARED LIQUIDITY PROBLEMS WOULD LEAD US INVESTORS TO PULL OUT OF OVERSEAS MARKETS IN FRANKFURT THE DAX 30STOCK INDEX SKIDDED 4737 POINTS TO 203000 AMID LOW VOLUME ALL THE DAX STOCKS DECLINED HURT BY A SELLOFF IN THE US BOND MARKET FRIDAY AND A HIGHERTHANEXPECTED GROWTH RATE IN THE GERMAN MONEY SUPPLY VIEWED AS FURTHER DAMPING HOPES FOR MORE CUTS IN KEY GERMAN INTEREST RATES THIS YEAR IN PARIS PRICES CRUMBLED 29 IN A SESSION SHORTENED BY A TRADINGSOFTWARE MALFUNCTION AND PUNCTUATED BY PROFITTAK ING AHEAD OF THE END OF THE NOVEMBER TRADING ACCOUNT AND NERVOUSNESS ABOUT NEGOTIATIONS ON WORLD TRADE LIBERALIZATION IN AMSTERDAM STOCKS FELL STEEPLY ON SENTI MENT SMARTING FROM FAILED TALKS ON A EUROPEAN AIRLINE MERGER TOKYO'S STUMBLE AND MOST EUROPEAN BOURSES' DECLINES AND A WAVERING US DOLLAR IN CURRENCY DEALINGS IN MILAN SHARES PLUNGED ON NEWS THAT TRADITIONAL ITALIAN POLITICAL PARTIES WERE SOUNDLY DEFEATED SUNDAY IN CITY ELECTIONS DOMINATED BY LEFTISTS ASSOCIATED WITH HIGHER GOVERNMENT DEFICITS AND TAXES AN ATHEMA TO STOCKS IN MADRID STOCKS WERE SQUASHED WITH A 16 LOSS BECAUSE OF BOURSES' WEAKNESS GLOBALLY A SOFT START ON WALL STREET AND THE GLOOMY GERMAN DATA'S EFFECTS ON THE INTERESTRATE OUTLOOK IN STOCKHOLM EQUITIES SLUMPED 25 FOLLOWING FRIDAY'S 26 PLUNGE ON HIGHER EUROPEAN INTEREST RATES MAJOR BOURSES' POOR PERFORMANCE AND THE WEAK KRONA CURRENCY IN ZURICH PRICES WERE SLAPPED DOWN 14 BY PROFITTAKING AMID WORRIES ABOUT US AND GERMAN RATES IN BRUSSELS EQUITIES SLID 21 ON PROFITTAKING WEAK GLOBAL MARKETS CONCERN ABOUT BELGIAN UNION STRIKE PLANS OVER THE GOVERNMENT'S AUSTERITY PACKAGE AND POSITIONSQUARING ON THE FINAL DAY OF AN ACCOUNTING PERIOD IN SYDNEY STOCKS SKIDDED 16 AS INVESTORS TOOK PROFITS BECAUSE OF FEARS OF SHORTTERM INTERESTRATE INCREASES AUSTRA LIAN SHARES PRICES HAVE BEEN SUPPORTED BY LOWER YIELDS IN THE DEBT MARKET IN HONG KONG PRICES SLUMPED 1 FOR THE FIFTH STRAIGHT LOSS THAT HAS CUT 58 FROM THE MAIN INDEX THOUGH IT IS STILL UP 66 FOR THIS YEAR SINCE LAST WEEK THE MARKET HASN'T RECOVERED FROM A DOWNGRADING BY A MORGAN STANLEY STRATEGIST WHILE UNFOLDING DEVELOPMENTS ABOUT THE BRITISH COLONY'S POLITICAL FUTURE CONTINUED TO DISAP POINT INVESTORS IN SEOUL SHARES PLUNGED 14 BACK TRACKING FROM A RECENT HEFTY RISE ON REPORTS THAT SOUTH KOREA MAY MAINTAIN UNTIL THE END OF NEXT YEAR THE CURRENT 8 LIMIT ON THE PURCHASE OF A COMPANY'S STOCK BY FOREIGN INVESTORS 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 9311230042 931123 MULTIMEDIA APPLE WILL TEST HOME SHOPPING ON CDROM BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF APPLE COMPUTER INC IS TEAMING UP WITH SOME OF AMERICA'S MOST UPSCALE CATALOG COMPANIES TO TEST WHETHER PEOPLE WILL SHOP USING THEIR COMPUTERS APPLE SAID IT AND TWO PARTNERS WILL DISTRIBUTE ELECTRONIC VERSIONS OF MAILORDER CATALOGS ON COMPACT DISKS OR CDROMS TO 30000 APPLE COMPUTER USERS NEXT MONTH IN ADDITION TO SEARCHING FOR MERCHANDISE FROM SUCH CATALOGS AS LL BEAN INC AND TIFFANY & CO PEOPLE WILL BE ABLE TO PLUG IN THEIR PARTICULAR PREFERENCES AND EVEN CHANGE THE COLOR OF GARMENTS TO ASSESS DIFFERENT COMBINATIONS THEY ALSO WILL BE ABLE TO BROWSE THROUGH EDITORIAL MATERIAL SUCH AS GUIDES TO FASHION AND FINANCIAL PLANNING WHILE THE EFFORT IS STRICTLY EXPERIMENTAL FOR APPLE AND THE 21 CATALOG COMPANIES PARTICIPATING IT MAY SHOW JUST HOW READY CONSUMERS ARE TO SHOP AT HOME WHAT WE'RE TRYING TO TEST IS WHETHER OR NOT CONSUMERS WILL USE THE COMPUTER TO SHOP SAID STEPHEN FRANZESE APPLE'S DIRECTOR OF BUSINESS DEVELOPMENT FOR NEW MEDIA THE VENDORS INVOLVED THINK THE PROJECT COULD LEAD TO NEW WAYS TO MARKET THEIR PRODUCTS AND THAT IT OFFERS TODAY THE KIND OF HOME SHOPPING THAT THE CABLE AND TELEPHONE INDUSTRIES HAVE BEEN TOUTING AS THE WAVE OF THE FUTURE IT'S A LEARNING PROCESS FOR EVERYBODY SAID PATRICK CONNOLLY SENIOR VICE PRESIDENT OF MAIL ORDER AT WILLIAMSSONOMA INC ONE OF THE PARTICIPANTS BUT IT REPLICATES A LOT OF WHAT THE INTERACTIVETV PEOPLE ARE TALKING ABOUT BEING ABLE TO DO AT SOME POINT IN THE FUTURE UNDER THE PILOT PROJECT CALLED EN PASSANT APPLE WILL DISTRIBUTE THE CDROMS TO 22000 HOMES AND 8000 BUSINESSES IN DECEMBER THE PROJECT'S NAME MEANS IN PASSING AS IN BROWSING INDEED USERS WILL BE ABLE TO SHOP BY BROWSING THROUGH CATALOGS ONSCREEN OR BY ASKING THE COMPUTER TO DISPLAY SPECIFIC ITEMS SUCH AS DINNER SETS OR MEN'S CASUAL SLACKS AND LETTING THE COMPUTER LIST PRODUCTS AVAILABLE FROM VARIOUS CATALOGS THE CDROM'S TESTERS THEN WILL BE ABLE TO ORDER MERCHANDISE OVER A SINGLE TOLLFREE NUMBER FROM THE CATALOG COMPANIES WHICH ALSO INCLUDE CONCERNS SUCH AS LANDS' END INC PATAGONIA INC AND APPLE'S COMPUTER CATALOG ONE OF APPLE'S PARTNERS IN THE PROJECT GENERAL MOTORS CORP'S EDS UNIT WILL PROVIDE A PHONEEXCHANGE SYSTEM THAT SWITCHES CUSTOMER CALLS FROM THE SINGLE TOLLFREE NUMBER TO THE CATALOG COMPANIES A SECOND PARTNER REDGATE COMMUNICATIONS CORP A MARKETINGCOMMUNICATIONS FIRM GATHERED THE EDITORIAL CONTENT WHICH INCLUDES FASHION ARTICLES FROM ELLE DECOR MAGAZINE EXCERPTS FROM BOOKS PUBLISHED BY ALFRED A KNOPF AND EXCERPTS FROM THE WALL STREET JOURNAL GUIDE TO UNDERSTANDING PERSONAL FINANCE FOR APPLE THE PROJECT IS PART OF A BROADER EFFORT TO FIND NEW SOURCES OF REVENUE IN SOFTWARE SERVICES AND OTHER MARKETS OUTSIDE THE TRADITIONAL COMPUTERHARDWARE MARKETS WHERE SEVERE PRICE COMPETITION IS CUTTING INTO PROFIT MARGINS WHAT WE'RE DOING HERE IS PUTTING A STAKE IN THE GROUND FIRST IN DIGITAL SHOPPING SAID GREGORY SHOVE APPLE'S DIRECTOR OF BUSINESS DEVELOPMENT IF THE PILOT IS SUCCESSFUL MR FRANZESE SAID APPLE WILL BROADEN ITS AUDIENCE TO COMPUTERS USING MICROSOFT CORP'S WINDOWS OPERATING SYSTEM IN FULLSCALE HOMESHOPPING SERVICE HE SAID CATALOG COMPANIES WOULD PAY APPLE TO LIST THEIR WARES ON THE CDROM AND ALSO PAY TRANSACTION FEES ON PURCHASES MADE FROM THE DISKS CONSUMERS MAY ALSO BE CHARGED A SUBSCRIPTION FEE FOR WHAT WOULD PROBABLY BE A QUARTERLY DELIVERY OF AN UPDATED DISK IF THE CDROM SHOPPING SERVICE SUCCEEDS MR FRANZESE SAID IT WILL BE RELATIVELY EASY TO CONVERT THE TECHNOLOGY TO DELIVER THE SERVICE OVER CABLE OR PHONE LINES AND OTHER MEDIA THAT MAY BECOME THE INFORMATION HIGHWAYS OF THE FUTURE FOR RETAILERS APPLE'S PILOT PROJECT IS A CHANCE TO EXPLORE NEW CHANNELS SAID ROBERT FORBES EXECUTIVE VICE PRESIDENT OF CML GROUP INC'S NATURE CO A BERKELEY CALIF RETAILER AND MAILORDER COMPANY THAT'S PARTICIPATING RETAILERS LIKE MR FORBES AND APPLE CAUTION THAT THE CDROM CATALOG IS ONLY A TEST FOR ONE THING THE INSTALLED BASE OF SPECIAL DISK DRIVES THAT RUN CDROMS ISN'T VERY BIG ABOUT 80 OF THE 38 MILLION CDROM DRIVES INSTALLED IN NORTH AMERICAN PCS ARE IN HOME COMPUTERS DATAQUEST INC ESTIMATES STILL SOME ANALYSTS THINK DIGITAL HOME SHOPPING IN SOME FORM PROBABLY WILL TAKE OFF AS AN ALTERNATIVE TO CATALOGS AND RETAIL STORES IT'S A SUPPLEMENT AND IT'S ALSO GOING TO TAKE AWAY SOME BUSINESS FROM RETAILERS ALTHOUGH IT'S NOT GOING TO CLOSE DOWN EVERY STORE SAID GARY ARLEN PRESIDENT OF ARLEN COMMUNICATIONS INC A RESEARCH FIRM SPECIALIZING IN INTERACTIVE TRANSACTIONS AND SERVICES HE SAYS COMPETITION IS LOOMING FROM BOTH ONLINE SERVICES AND A JOINT VENTURE CALLED MICROMALL BETWEEN BELL ATLANTIC CORP AND MICROWARE SYSTEMS CORP BUT EN PASSANT'S RANGE OF MATERIAL AND INTERACTIVE FUNCTIONS ARE AHEAD OF THE CURVE FOR NOW MR ARLEN NOTES THAT HOME SHOPPING IS A 35 BILLION MARKET AT MOST A SMALL CHUNK OF THE TOTAL MARKET FOR CATALOG SALES WHICH THE DIRECT MARKETING ASSOCIATION SAYS TOTALS 51 BILLION 9311230041 931123 WHAT'S NEWS BUSINESS AND FINANCE AMERICAN AIR'S STRIKING FLIGHT ATTENDANTS ENDED THEIR FIVEDAY WALKOUT AFTER CLINTON TOOK THE UNUSUAL STEP OF INTERVENING THE ATTENDANTS AGREED TO ACCEPT ARBITRATION OF THEIR DIFFERENCES AFTER THE PRESIDENT MADE CALLS TO BOTH SIDES THE ATTENDANTS SAID THEY WILL GO BACK TO WORK AND THE CARRIER SAID IT WON'T REPLACE THEM STOCK PRICES DROPPED ON CONCERNS THAT THE BONDMARKET SLUMP IS WORSE THAN FIRST THOUGHT AFTER DIVING MORE THAN 40 POINTS THE DOW JONES INDUSTRIALS REBOUNDED MODERATELY TO FINISH 2376 POINTS LOWER AT 367025 THE PRICE OF THE 30YEAR TREASURY BOND FELL 3/4 POINT ITS YIELD ROSE TO 638 TOKYO STOCK PRICES PLUNGED 31 MONDAY THE LARGEST PERCENTAGEPOINT DROP THIS YEAR THE NIKKEI INDEX CLOSED AT 1738484 DOWN 55635 POINTS OTHER MARKETS WORLDWIDE TUMBLED VIACOM AND QVC NETWORK AGREED TO EXTEND THEIR OFFERS FOR PARAMOUNT BY TWO DAYS AFTER A DELAWARE JUDGE SAID HE WOULDN'T ISSUE A RULING ON THE TAKEOVER BATTLE UNTIL TOMORROW FUNDING SHORTFALLS AT THE 50 MOST UNDERFUNDED PRIVATE PENSION PLANS ROSE 9 BILLION IN 1992 TO 3805 BILLION THE PENSION BENEFIT GUARANTY SAID GRUMMAN AGREED TO A 20 MILLION CIVIL SETTLEMENT MOVING TO AVERT CRIMINAL CHARGES OF DEFRAUDING THE NAVY THE ACCORD ALSO MANDATES THE MOST EXTENSIVE INVOLVEMENT YET BY FEDERAL AGENCIES IN A MAJOR DEFENSE CONTRACTOR'S ETHICSCOMPLIANCE EFFORTS THE UAW'S TOP GM NEGOTIATOR HINTED THAT GM MAY FACE LOCAL WORK DISRUPTIONS AS EARLY AS JANUARY AT A CONTRACT SIGNING THE UNION OFFICIAL SAID GM WAS ATTEMPTING TO INTIMIDATE LOCAL UNIONS WITH THREATS THAT THEIR PLANTS WOULD BE CLOSED OR SOLD APPLE AND TWO FIRMS PLAN TO DISTRIBUTE ELECTRONIC VERSIONS OF MAILORDER CATALOGS SUCH AS LL BEAN AND TIFFANY ON CDROM TO APPLE USERS AMERICAN EXPRESS MOVED ANOTHER STEP CLOSER TO OFFERING ITS LEHMAN BROTHERS UNIT TO THE PUBLIC BY NAMING LEHMAN PRESIDENT RICHARD FULD TO THE ADDITIONAL POST OF CHIEF EXECUTIVE THE FORMULA FOR CALCULATING THE INDEX OF LEADING ECONOMIC INDICATORS IS BEING REVISED BY THE GOVERNMENT DEAN WITTER DISCOVER AND MASTERCARD INTERNATIONAL SET ASIDE THEIR LEGAL FIGHT AND TEAMED UP WITH NATIONSBANK TO JOINTLY OFFER A CREDIT CARD INVESTMENT BANKERS ARE OFFERING NEW HEDGING DEVICES TO SOFTEN THE IMPACT OF AN FASB ACCOUNTING PROPOSAL TO DEDUCT THE COST OF STOCKOPTION GRANTS FROM CORPORATE PROFITS SUN MICROSYSTEMS PLANS TO LICENSE NEXT SOFTWARE THAT LETS USERS OF SUN'S SOLARIS OPERATING SYSTEM CREATE OR CUSTOMIZE PROGRAMS MORE QUICKLY VOLVO WON CONCESSIONS FROM THE FRENCH GOVERNMENT DEEMED ESSENTIAL TO SALVAGING THE SWEDISH FIRM'S PROPOSED MERGER WITH FRANCE'S RENAULT FOODMAKER PLANS TO CREATE A MEDICAL MONITORING PROGRAM AND 10YEAR TRUST FUND AS PART OF A SETTLEMENT FOR VICTIMS OF JANUARY'S BACTERIALINFECTION OUTBREAK AT ITS JACK IN THE BOX BONDS LEHMAN BROTHERS TREASURY INDEX 543015 OFF 3058 COMMODITIES OIL 1710 A BARREL UP FOUR CENTS DOW JONES FUTURES INDEX 13500 UP 034 SPOT INDEX 12297 OFF 050 DOLLAR 10843 YEN OFF 002 17038 MARKS OFF 00108 9311230040 931123 JUDGE DELAYS HIS RULING ON PARAMOUNT PROMPTS RIVAL BIDDERS TO EXTEND OFFERS BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL A DELAWARE JUDGE SAID HE WOULDN'T ISSUE A RULING ON THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC UNTIL TOMORROW AND GOT BOTH BIDDERS TO AGREE TO EXTEND THEIR OFFERS BY TWO DAYS THE ACTION BY JUDGE JACK JACOBS PRESERVED A TIMING ADVANTAGE CURRENTLY HELD BY VIACOM INC WHOSE 93 BILLION TENDER OFFER FOR PARAMOUNT IS NOW SET TO EXPIRE AT 1201 AM THURSDAY THAT WOULD ALLOW VIACOM TO ACCEPT STOCK FROM PARAMOUNT SHAREHOLDERS BEFORE RIVAL BIDDER QVC NET WORK INC WHOSE HIGHER 106 BILLION OFFER NOW EXPIRES DEC 1 THE CAREFUL DELIBERATE PACE SET BY JUDGE JACOBS WHO WAS OVERRULED IN A 1988 TAKEOVER BATTLE FOR MACMILLAN INC CONTRASTED WITH A WILD DAY IN THE MARKET FOR PARAMOUNT STOCK WHICH GYRATED FROM A DROP OF 2875 TO A GAIN OF 2625 IN THE SPACE OF A FEW HOURS THE MOVES STUNG MANY TRADERS WITH LOSSES AS THE JUDGE MADE HIS INTENTIONS KNOWN IN A TELEPHONECONFERENCE CALL WITH LAWYERS YESTERDAY PARAMOUNT DECIDED NOT TO ENTER INTO LASTMINUTE TALKS WITH QVC ACCORDING TO PEOPLE FAMILIAR WITH THE CONTEST QVC ANNOUNCED ON SATURDAY THAT IT HAD OBTAINED BANK FINANCING FOR ITS OFFER AND PEOPLE FAMILIAR WITH THE SITUATION RESPONDED THAT PARAMOUNT'S BOARD MIGHT AUTHORIZE TALKS WITH QVC AS A RESULT BUT YESTERDAY THOSE PEOPLE NOTED THAT THE QVC OFFER REMAINS SUBJECT TO SEVERAL CONDITIONS AND THAT THE NEW BANK FINANCING ITSELF WAS SUBJECT TO CONDITIONS QVC CHAIRMAN BARRY DILLER SEETHED AT REPORTS THAT PARAMOUNT IS CONTINUING TO SPURN QVC'S OFFER BECAUSE OF THE REMAINING CONDITIONS WE HAVE LIFTED EVERY OBSTACLE IN OUR PATH INCLUDING REGULATORY ISSUES AND FINANCING ISSUES HE SAID IN AN INTERVIEW THE ONLY REMAINING ISSUES THE POISON PILL AND THE LOCK UP ARE ENTIRELY IN THEIR CONTROL AND TO CITE THEM AS ISSUES THAT MAKE OUR OFFER HIGHLY CONDITIONAL IS HYPOCRISY THAT KNOWS NO END PARAMOUNT WHICH HAS A FRIENDLY MERGER AGREEMENT WITH VIACOM HAS IN PLACE A POISON PILL WHICH WOULD MAKE A HOSTILE TAKEOVER BY QVC PROHIBITIVELY EXPENSIVE IT ALSO HAS AGREED TO PAY A 100 MILLION BREAKUP FEE TO VIACOM IF PARAMOUNT IS SOLD TO ANOTHER BIDDER AND HAS A LOCKUP AGREEMENT THAT ALLOWS VIACOM TO BUY 237 MILLION NEWLY ISSUED PARAMOUNT SHARES AT A PRICE OF 6914 A SHARE ADDING TO ANOTHER BIDDER'S COST QVC IS ASKING THE DELAWARE COURT TO REMOVE BOTH THESE OBSTACLES PARAMOUNT DECLINED TO COMMENT ON WHETHER ITS BOARD MET AND WOULDN'T SAY WHEN OR IF IT WOULD MEET TO CONSIDER QVC'S OFFER OVER THE WEEKEND HOWEVER PARAMOUNT SAID IT WOULD REVIEW THE LATEST QVC MATERIALS AND RESPOND APPROPRIATELY PARAMOUNT STOCK SWUNG WILDLY YESTERDAY CONTINUING ITS STEADY DECLINE FOR MOST OF THE DAY BEFORE SURGING UNEXPECTEDLY AT THE CLOSE OF TRADING TRADERS ATTRIBUTED THE DOWNWARD PRESSURE ON THE STOCK TO THE REMOVAL OF PARAMOUNT FROM THE STANDARD & POOR'S 500 STOCK INDEX EFFECTIVE AFTER THE CLOSE OF TRADING YESTERDAY THE ACTION BY S&P WAS EXPECTED TO TRIGGER A DELUGE OF SELL ORDERS OF PARAMOUNT STOCK BY STOCKINDEX FUNDS WHOSE PORTFOLIOS ARE STRUCTURED TO MATCH THE S&P 500 INDEX BECAUSE THOSE SELL ORDERS WERE TO BE EXECUTED AT YESTERDAY'S CLOSING PRICE MANY TRADERS SUBMITTED ORDERS TO BUY AT THE CLOSE AT WHAT THEY EXPECTED WOULD BE A BARGAIN PRICE INSTEAD THE BUY ORDERS OVERWHELMED THE SALES AND THE STOCK SURGED UNEXPECTEDLY FROM 7575 JUST BEFORE THE CLOSE TO 79 ON THE NEXT TRADE ABOUT 77 MILLION SHARES CHANGED HANDS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WITH MORE THAN HALF OF THE TOTAL AT THE CLOSING PRICE IN AFTERHOURS TRADING OFF THE EXCHANGE THE STOCK WAS OFFERED AT 7650 IMPLYING THE STOCK SHOULD FALL BACK TODAY INFLICTING LOSSES ON BUYERS WHO PAID 79 THE JUDGE'S ACTION APPEARS LIKELY TO SEND THE PROTRACTED AND CONVOLUTED TAKEOVER BATTLE FOR PARAMOUNT INTO THE THANKSGIVING HOLIDAYS AND IF AN EXPECTED APPEALPROCESS TAKES MORE THAN A FEW DAYS VERY LIKELY INTO DECEMBER THANKSGIVING WE'LL BE LUCKY IF IT'S OVER BEFORE CHRISTMAS SAID ONE PARTICIPANT A LAWYER FOR ONE OF THE PARTIES NOTED THAT WHICHEVER SIDE LOSES IN COURT COULD ALWAYS QUICKLY RAISE ITS BID FOR THE PUBLISHING AND ENTERTAINMENT GIANT AND EXTEND THE CONTEST STILL FURTHER IN AN ANNOUNCEMENT YESTERDAY QVC SAID BOTH BIDDERS EXTENDED THEIR OFFERS BECAUSE THE JUDGE HAD INFORMED THEM HE DIDN'T EXPECT TO RULE ANY EARLIER THAN WEDNESDAY HOWEVER LAWYERS INVOLVED IN THE CASE SAID THE JUDGE INDICATED HE WOULD RULE ON WEDNESDAY AS AN INDICATION OF HOW LONG AN APPEAL COULD TAKE THE APPEALS PROCESS LASTED ABOUT 10 BUSINESS DAYS IN THE LAST HIGHPROFILE TAKEOVER BATTLE IN WHICH PARAMOUNT UNSUCCESSFULLY SOUGHT TO BREAK UP THE ACQUISITION OF WARNER COMMUNICATIONS INC BY TIME INC THAT LENGTH OF TIME WOULD PUT A DECISION SOMEWHERE AROUND DEC 10 ONE BIG SHAREHOLDER MARIO GABELLI OF GABELLI FUNDS INC ESTIMATED THERE IS AN 80 CHANCE THAT THE JUDGE WILL OKAY THE FEES PAYABLE TO VIACOM BUT WILL THROW OUT PARAMOUNT'S POISON PILL THUS ALLOWING QVC TO BID FOR PARAMOUNT SHARES ON A MORE EQUAL BASIS WITH VIACOM 9311230039 931123 BUSINESS BRIEF SAFECARD SERVICES INC ILLINOIS COURT DISMISSES FORMER CHAIRMAN'S LAWSUIT SAFECARD SERVICES INC SAID AN ILLINOIS STATE COURT DISMISSED A BREACHOFCONTRACT SUIT FILED AGAINST THE COMPANY AND A DIRECTOR BY ITS FORMER CHAIRMAN IN A BACKANDFORTH LEGAL BATTLE BUT PETER HALMOS THE FORMER CHAIRMAN AND A COFOUNDER OF THE CHEYENNE WYO COMPANY SAID THE COURT'S DECISION WAS ON PROCEDURAL GROUNDS HE SAID IN A STATEMENT THAT HE WILL REFILE HIS COMPLAINT SO IT COMPLIES WITH THE RULING IN THE SUIT WHICH SOUGHT 100 MILLION MR HALMOS ACCUSED THE COMPANY OF RENEGING ON PAYMENT AND STOCK AGREEMENTS AND OTHER OBLIGATIONS MR HALMOS WAS OUSTED LAST DECEMBER FROM THE COMPANY WHICH NOTIFIES CREDITCARD ISSUERS OF LOST OR STOLEN CARDS SAFECARD MEANWHILE HAS SUED MR HALMOS IN STATE COURT IN WYOMING AND FLORIDA SEEKING TO RECOUP TENS OF MILLIONS OF DOLLARS IN ALLEGED INSIDERTRADING PROFITS 9311230038 931123 LETTERS TO THE EDITOR LET'S BE FORTHCOMING ON CABLE MONOPOLIES REP EDWARD MARKEY IS UNDERSTANDABLY UPSET AT ME LETTERS OCT 19 FOR QUOTING HIS COMMENTS WHY YOUR CABLE BILL IS SO HIGH SEPT 24 IN THE CONGRESSIONAL RECORD PROMISING 30 RATE CUTS DUE TO THE 1992 CABLE ACT AND CITES MY GLARING OMISSION FAILING TO MENTION THE BILL'S PROCOMPETITIVE ASPECTS THAT WOULD HAVE BEEN A MODEST OMISSION HAD I NOT MENTIONED THOSE ASPECTS BEFORE IN THE WSJ AND ELSEWHERE AND IF MY ACADEMIC RESEARCH HAD NOT ACCORDING TO AT LEAST ONE OF MR MARKEY'S DEMOCRATIC TELECOMMUNICATIONS SUBCOMMITTEE STAFFERS FORMED BACKGROUND ANALYSIS USED IN THE PROGRAM ACCESS PROVISIONS OF THE LAW UNHAPPILY THE 1992 CABLE ACT ALSO CONTAINED RATE REGULATION A PREDICTABLE FAILURE AND THE DETAILS OF THIS BOOMERANG WERE THE SPECIFIC TOPICS OF MY RECENT ESSAY IN HIS LETTER ROBERT J SACHS OF CONTINENTAL CABLEVISION THINKS HE REVEALS SOMETHING SECRET BY NOTING THAT I SERVED AS AN EXPERT FOR BELL ATLANTIC IN FEDERAL PROCEEDINGS IN THE ORIGINAL DRAFT OF MY SEPT 24 ARTICLE I NOTED THIS FACT THE JOURNAL'S EDITORS AT THEIR DISCRETION AND OVER MY OBJECTION REMOVED THIS REFERENCE MR SACHS'S INFERENCE THAT I AM NOT FORTHCOMING SHOULD HEREBY BE CORRECTED YET MORE IMPORTANT TO RECTIFY IS HIS DECEPTIVE ASSERTION THAT CABLE PRICES IN COMPETITIVE MARKETS ARE STATISTICALLY INDISTINGUISHABLE HIS EMPHASIS FROM THOSE CHARGED BY MONOPOLIES IN SYSTEMS OF MORE THAN 5000 SUBSCRIBERS THE FCC IN LINE WITH EVERY OTHER REPUTABLE SURVEY OR STUDY HAS FOUND A STATISTICALLY DISTINGUISHABLE DIFFERENCE IN PRICES COMPETITIVE SYSTEM RATES ARE 27 LOWER BUT THE FCC'S SUBSAMPLE OF HEADTOHEAD COMPETITIVE SYSTEMS IS ONLY 46 NATIONWIDE TO TOSS OUT THOSE WITH LESS THAN 5000 SUBSCRIBERS IS A CUTE LAWERLY TRICK WHICH WITHOUT ANY ECONOMIC JUSTIFICATION SIMPLY ELIMINATES THE NECESSARY DEGREES OF FREEDOM TO PERFORM STATISTICAL TESTS OF SIGNIFICANCE IF ONE THROWS OUT SYSTEMS UNDER 100000 SUBS ONE CAN CLAIM THAT THERE IS NO COMPETITIVE PRICE DISCOUNT TO ALL THERE ARE ZERO COMPETITIVE SYSTEMS THIS LARGE BEYOND SUCH GIMMICKRY MR SACHS'S ARGUMENT COMES DOWN TO THE CABLE INDUSTRY PLEADING THAT IT HAS SO SUCCESSFULLY EXPUNGED COMPETITION THAT NO ONE CAN PROVE STATISTICALLY SIGNIFICANT PRICE DECREASES FROM GREATER RIVALRY MR SACHS'S COMMENTS ARE MOST REVEALING HOWEVER WHEN HE DEFENDS THE RATE REGULATION SCHEME AND MOCKS THE BENEFITS OF COMPETITION LAST YEAR THE CABLE INDUSTRY STAGED A NATIONAL ADVERTISING CAMPAIGN TO TELL AMERICANS THAT THE 1992 CABLE ACT WOULD NOT LOWER THEIR RATES NOW THAT THE REGULATORY CAT IS OUT OF THE BAG THE INDUSTRY SPINNING 180 DEGREES RETREATS TO DEFENDING PHANTOM RATE CUTS AND ATTACKING THE BENEFITS OF COMPETITION OF COURSE IF THE CABLE INDUSTRY TRULY BELIEVED THAT COMPETITION DID NOT UNDERMINE TODAY'S MONOPOLY PRICING SCHEMES IT WOULD NOT SO RELIABLY OPPOSE NEW ENTRANTS FROM UPSTART CABLE ENTREPRENEURS TO TELCOS TO WIRELESS THAT CABLE MONOPOLIES NOW FAVOR THE REGULATED STATUS QUO IS QUITE TELLING INDEED 9311230037 931123 ARCO IS CONSIDERING INITIAL PUBLIC OFFERING IN NATURALGAS UNIT LOS ANGELES ATLANTIC RICHFIELD CO SAID IT IS CONSIDERING A PLAN FOR AN INITIAL PUBLIC OFFERING OF STOCK IN ITS NATURALGAS SUBSIDIARY ARCO SAID IT WOULD LIKELY SELL LESS THAN 18 OF THE SUBSIDIARY'S STOCK IF THE PLAN IS ADOPTED THE NEW PUBLICLY TRADED COMPANY WOULD BE BASED IN HOUSTON AND WOULD TAKE THE SUBSIDIARY'S NEW NAME VASTAR RESOURCES INC THE PROPOSAL COMES AFTER A MAJOR REORGANIZATION OF ARCO'S DOMESTIC OIL AND GAS OPERATIONS OUTSIDE ALASKA VASTAR THE LARGEST OF FOUR NEW BUSINESS UNITS IS AN EXPLORATION AND PRODUCTION COMPANY WITH PROVED RESERVES OF ABOUT 21 TRILLION CUBIC FEET OF NATURAL GAS AND 100 MILLION BARRELS OF OIL AND NATURALGAS LIQUIDS CREATION OF A SEPARATE COMPANY WOULD ACHIEVE GREATER RECOGNITION OF VASTAR'S VALUE AS A NATURALGAS COMPANY AND ENCOURAGE AN INDEPENDENT CULTURE AN ARCO SPOKESMAN SAID THE COMPANY HAS SUBSTANTIAL PROPERTIES AND JUST UNDER 1000 EMPLOYEES VASTAR WOULD REMAIN ONE OF ARCO'S CORE HOLDINGS AND ITS RESULTS WOULD STILL BE CONSOLIDATED WITH THOSE OF THE PARENT COMPANY THE SPOKESMAN SAID PROCEEDS OF ANY OFFERING WOULD GO TO VASTAR FOR ITS CORPORATE PURPOSES THE SPOKESMAN SAID THE PARENT WOULD RECEIVE A SPECIAL DISTRIBUTION FROM VASTAR APPROACHING 125 BILLION VASTAR HAS RETAINED MORGAN GUARANTY TRUST CO OF NEW YORK AS ITS AGENT IN ARRANGING A RELATED LOAN ARCO SAID 9311230036 931123 BUSINESS BRIEF PEPSICO INC FORTE AGREES TO SELL BACK 50 STAKE IN KFC OF UK PEPSICO INC PURCHASE NY AGREED IN PRINCIPLE TO BUY BACK A 50 STAKE IN KENTUCKY FRIED CHICKEN LTD OF GREAT BRITAIN FROM LONDONBASED FORTE PLC THE SALE WHOSE TERMS WEREN'T DISCLOSED WILL RETURN COMPLETE CONTROL OF THE FASTFOOD CHAIN'S UK OPERATIONS TO KFC CORP A PEPSICO SUBSIDIARY THE SALE IS EXPECTED TO BE COMPLETED YEAR END KFC SOLD THE STAKE TO FORTE IN DECEMBER 1986 FORMING A JOINT VENTURE THAT HAS GROWN TO INCLUDE 84 COMPANYOWNED RESTAURANTS AND 220 FRANCHISED STORES ABOUT HALF OF THE 7 BILLION OF ANNUAL RETAIL SALES AT KFC RESTAURANTS COME FROM OVERSEAS STORES WHERE PROFIT MARGINS USUALLY ARE TWO TO THREE TIMES HIGHER THAN DOMESTIC MARGINS ACCORDING TO A KFC SPOKESMAN FORTE IS PART OF TRUSTHOUSE FORTE PLC A HOTEL AND RESTAURANT CONCERN 9311230035 931123 WHO'S NEWS DIED DANIEL J KRUMM 67 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MAYTAG CORP YESTERDAY IN NEWTON IOWA OF CANCER 9311230033 931123 CLINTON HEALTHPLAN VIDEO TOUTS A BUSH AIDE'S VIEW WASHINGTON THE DEMOCRATIC NATIONAL COMMITTEE IN A NEW VIDEO PROMOTING THE CLINTON HEALTHCARE PLAN LISTS 44 ORGANIZATIONS AND INDIVIDUALS SAID TO SUPPORT THE PRINCIPLES OF THE SOCALLED HEALTH SECURITY ACT NUMBER 38 IS LOUIS SULLIVAN WHO WAS SECRETARY OF HEALTH AND HUMAN SERVICES UNDER PRESIDENT BUSH AND AN OUTSPOKEN CRITIC OF A NUMBER OF ELEMENTS IN THE CLINTON HEALTH BILL TOLD OF THE INCLUSION OF HIS NAME IN THE DNC'S VIDEO YESTERDAY DR SULLIVAN EXPRESSED AMAZEMENT THIS IS CLEARLY A DISTORTION AND MISREPRESENTATION OF MY VIEWS I AM ASTOUNDED AT THEIR ARROGANCE THAT THEY WOULD LIST ME WITHOUT MAKING ANY CONTACT WHATSOEVER AT A NEW CONFERENCE UNVEILING THE NEW VIDEO RICHARD CELESTE THE FORMER OHIO GOVERNOR WHO IS RUNNING THE DNC'S HEALTHCARE CAMPAIGN SAID THAT THE COMMITTEE HAD CONTACTED EVERYONE LISTED AT THE END OF THE VIDEO BEFORE USING THEIR NAMES DR SULLIVAN DENIED HE HAD BEEN CALLED SOME ONE IS LYING HE SAID NO ONE CALLED ME I'VE CHECKED WITH MY STAFF DNC OFFICIALS COULDN'T BE REACHED LAST NIGHT TO RESPOND TO DR SULLIVAN'S STATEMENTS 9311230032 931123 PEPPERAND SALT YOU WILL KNOW WHAT THEY MEAN BY CROSS TRAINING HAS WANDERED FAR OFF KEEL WAS ONCE THE PRICE OF A MEAL BANKRUPTCY CLAIM PAUPERWORK 9311230031 931123 TECHNOLOGY & HEALTH WRONGFULDISMISSAL SUIT AGAINST APPLE IS DISMISSED CUPERTINO CALIF APPLE COMPUTER INC SAID A STATE COURT THREW OUT A WRONGFULDISMISSAL LAWSUIT FILED BY A FORMER DIRECTOR AND EXECUTIVE VICE PRESIDENT ALBERT A EISENSTAT THE COMPANY SAID THE STATE SUPERIOR COURT IN SAN JOSE CALIF DISMISSED THE SUIT WITH PREJUDICE AFTER A MEDIATOR RULED MR EISENSTAT'S ALLEGATIONS WEREN'T SUPPORTED BY FACTS THE DISMISSAL WITH PREJUDICE MEANS MR EISENSTAT CANNOT REFILE AN APPLE SPOKESWOMAN SAID IN THE SUIT MR EISENSTAT ALLEGED HE WAS FORCED OUT OF HIS EXECUTIVE POST AFTER THE DEPARTURE OF APPLE'S CHAIRMAN JOHN SCULLEY MR SCULLEY RESIGNED AS CHIEF EXECUTIVE IN JUNE AND WAS REPLACED AS CHAIRMAN IN OCTOBER BY MICHAEL SPINDLER MR SPINDLER LATER FIRED MR EISENSTAT ACCORDING TO THE SUIT MR EISENSTAT 63 YEARS OLD ALSO CHARGED IN THE SUIT THAT APPLE BREACHED ITS CONTRACT BY DISMISSING HIM AND ENGAGED IN AGE DISCRIMINATION SPOKESMEN FOR APPLE AND MR EISENSTAT DECLINED TO COMMENT FURTHER 9311230030 931123 CLEVELAND WORLD TO START MINORITYOPERATED BANK CLEVELAND A GROUP OF PROFESSIONALS LED BY A FORMER BANKING EXECUTIVE SAID IT FORMED A HOLDING COMPANY TO START A BANK OPERATED BY PEOPLE FROM DIFFERENT MINORITIES AND STARTED A 20 MILLION STOCK OFFERING FRIDAY CLEVELAND WORLD CORP HOLDING COMPANY FOR THE CLEVELAND WORLD BANK IS OFFERING 150000 SHARES OF COMMON STOCK FOR 100 EACH AND 5000 SHARES OF PREFERRED STOCK FOR 1000 EACH THE COMPANY MUST SELL AT LEAST 5250000 OF STOCK TO OPEN THE BANK THE CHAIRMAN OF THE HOLDING COMPANY RETIRED EATON CORP STRATEGICPLANNING MANAGER ALEX MARK IS ASIAN AMERICAN THE PRESIDENT AND CHIEF EXECUTIVE OF THE HOLDING COMPANY WAYNE WILLIAMS IS AFRICAN AMERICAN THE DIRECTORS ARE FROM SEVERAL ETHNIC BACKGROUNDS IN AN INTERVIEW MR WILLIAMS A FORMER FEDERAL SAVINGS AND LOAN INSURANCE CORP REGULATOR SAID THE PRIMARY PURPOSE OF THE BANK IS TO MAKE LOANS TO THE DISADVANTAGED PEOPLE OF ALL RACES IN CLEVELAND WHICH IS 52 BLACK 9311230029 931123 COSMETIC SURGERY GOES HAND IN GLOVE WITH THE NEW KOREA WHAT WOULD CONFUCIUS SAY ABOUT THE WESTERNIZATION OF EYE NOSE AND BREAST BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA HERE IN MYONGDONG A STRIP OF BOUTIQUES IN DOWNTOWN SEOUL ONE CAN FIND THE LATEST IN WESTERNSTYLE ACCESSORIES CLOTHES FROM CALVIN KLEIN HANDBAGS FROM CHANEL AND GUCCI EYES NOSES AND BREASTS FROM KIM YOUNG HO DR KIM IS ONE OF 430 REGISTERED PLASTIC SURGEONS WHO HAVE HELPED MAKE KOREA ASIA'S LARGEST MARKET FOR COSMETIC SURGERY HIS CLIENTS RANGE FROM HOUSEWIVES TO BLUECOLLAR BURN VICTIMS BUT HE IS IN PARTICULARLY GREAT DEMAND AMONG KOREA'S YOUNG AND AFFLUENT WOMEN AND SOME MEN WHO WANT TO GO ANGLO WITH CAUCASOID FEATURES THE SIMILARITIES BETWEEN WESTERN AND KOREAN PLASTIC SURGERY IS THAT THE STANDARD FOR BEAUTY IS WESTERN SAYS DR KIM A LOT OF SOCIOLOGISTS HAVE CRITICIZED US FOR THIS SAYING WE'RE FITTING KOREANS IN FOREIGN CLOTHES BUT MY PATIENTS ARE ADULTS AND ARE CAPABLE OF MAKING THEIR OWN DECISIONS ON ANY GIVEN DAY THE STREETS OF MYONGDONG ARE FILLED WITH WELLHEALED CONSUMERS WHO HAVE RECENTLY HAD THEIR EYES WIDENED NOSES LIFTED AND CHEEKBONES SHAVED IN A RECENT POLL CONDUCTED BY A SOCIOLOGY PROFESSOR AT KYONGHEE UNIVERSITY 351 OF HIGHSCHOOL AND COLLEGE STUDENTS SAID THEY CRAVE SOME KIND OF COSMETIC SURGERY FOR CONSERVATIVES IN THIS DEVOUTLY CONFUCIAN SOCIETY THE TREND IS UPSETTING THEY DOUBT CONFUCIUS WHO ANTEDATED COSMETIC SURGERY BY MORE THAN 2000 YEARS COULD HAVE RECONCILED HIS PHILOSOPHY OF FILIAL DEVOTION AND ASCETIC NATURALISM WITH BREAST ENLARGEMENTS AND LIPOSUCTION THIS IS AN EXAMPLE OF STUDENTS CONFUSED BETWEEN WESTERN AND TRADITIONAL EASTERN VALUES SAYS CHO SUNG NAM PROFESSOR OF SOCIOLOGY AT EWHA WOMEN'S UNIVERSITY HERE IN SEOUL THEY THINK WESTERNIZATION IS MORE ADVANCED AND SOPHISTICATED BUT WE SHOULD PRESERVE OUR OWN VALUES OF BEAUTY AND IDEOLOGY KOREANS HAVE A LOVEHATE RELATIONSHIP WITH WESTERN CULTURE THAT MANIFESTS ITSELF IN PARADOXICAL WAYS JUST LAST MONTH FOR EXAMPLE A CONSERVATIVE MEN'S GROUP CONDEMNED AN ENGLISHLANGUAGE BROADCAST OF THE AMERICAN CARTOON TOM AND JERRY AS A RECKLESS INFILTRATION OF WESTERN CULTURE THE OFFENDED ORGANIZATION WAS THE SEOUL CHAPTER OF THE YOUNG MEN'S CHRISTIAN ASSOCIATION A US IMPORT KIM YOUNG JIN SEOUL'S SELFSTYLED MASTER OF NOSES REPRESENTS KOREA'S NEW GENERATION OF ESTABLISHED COSMETIC SURGEONS DR KIM TOOK FIVE YEARS' ADDITIONAL TRAINING BEYOND THE MD IN PLASTIC SURGERY THE GROWING SOPHISTICATION OF LOCAL PLASTIC SURGERY WHICH BEGAN TO EVOLVE A DECADE AGO HAND IN GLOVE WITH THE RISING PERCAPITA INCOME OF KOREANS MEANS PEOPLE HERE CAN GO WESTERN WITHOUT HAVING TO FLY TO CALIFORNIA BESIDES SAYS DR KIM SURGEONS IN THE US DON'T OPERATE WELL ON ASIAN PEOPLE IT'S BEST TO GET WESTERNIZED IN ASIA THERE HAVE BEEN A FEW WRINKLES IN THE TRANSITION EARLY THIS YEAR THE GOVERNMENT LAUNCHED AN AUSTERITY CAMPAIGN AIMED AT SHAMING KOREANS BACK TO THE SPARTAN VALUES THAT HELPED FUEL THE COUNTRY'S ECONOMIC DEVELOPMENT IN THE 1970S AND 1980S FLASHY CARS DESIGNER CLOTHES EXOTIC VACATIONS AND MOST DEFINITELY COSMETIC SURGERY ARE EXTRAVAGANCES TO BE AVOIDED COSMETIC SURGERY CAN COST 1 MILLION TO 5 MILLION WON BETWEEN 1200 AND 6200 THERE HAS BEEN SOME DOWNWARD TREND IN BUSINESS SAYS KO BYUNG CHEON A PHYSICIAN BUT THIS TREND IS TEMPORARY THE INSTINCT TO LOOK BEAUTIFUL WILL OVERCOME THE AUSTERITY PROGRAM PATIENTS OF PLASTIC SURGEONS ARE NONETHELESS A BASHFUL LOT AT LEAST UNTIL THEIR SCARS HEAL MOST USUALLY ADOPT SOME VERSION OF THE ELABORATE AND CONSPICUOUS POSTOP VEIL TAKE 27YEAROLD MUSIC TEACHER YU MIN KYUNG WHO HAS JUST NAVIGATED HER WAY THROUGH MYONGDONG'S CROWDED COBBLED STREETS IN OVERSIZED SUNGLASSES AND A BLACK BASEBALL CAP THE JOURNEY TAKES HER PAST THEATERS FEATURING THE LATEST AMERICAN MOVIES IN THE LINE OF FIRE A LABYRINTH OF FASTFOOD OUTLETS MCDONALD'S AND HARDEES AND CAFES THAT SELL IRISH WHISKEY AT 650 A SHOT SHE RETAINS THE VEIL EVEN AFTER SHE SLIPS INTO THE DIMLY LIGHTED LOBBY OF KIM YOUNG JIN'S CLINIC MS YU HAS JUST HAD HER NOSE RAISED WITH A 1 1/2INCHLONG SILICONE BLOCK THAT IS ABOUT A QUARTERINCH WIDE AT THE TOP AND TAPERS DOWN TO ABOUT 1/8 INCH AT THE BOTTOM HEALTH CONCERNS ABOUT THE SAFETY OF SILICONE IMPLANTS HAVE YET TO REACH KOREA THE OPERATION TOOK ABOUT 40 MINUTES AND COST HER 1200 SHE HAS A COTTON BUD TAPED TO HER EAR WHERE A SMALL STRIP OF CARTILAGE HAS BEEN REMOVED AND INSERTED IN THE TIP OF HER NOSE A FRESH SCAR PEEPS OUT BELOW A TSHAPED FLESHCOLORED BANDAGE THAT COVERS BOTH NOSTRILS IT WILL TAKE ABOUT A WEEK FOR THE SWELLING TO GO DOWN FOUR TO SIX MONTHS FOR HEALING TO BE COMPLETE MS YU DENIES SHE IS SUBVERTING KOREA'S CULTURAL INTEGRITY THIS IS DIFFERENT FROM BUYING LUXURY ITEMS SHE SAYS IT DEALS WITH SELFESTEEM I ADMIT WE'RE LOOKING ANGLICIZED BUT WE'RE SOCIAL ANIMALS AND WE HAVE TO ADAPT TO SOCIETY NEXT TO NOSES THE MOST POPULAR TREATMENT IS THE DOUBLEFOLD FORMATION IN WHICH THE PHYSICIAN REMOVES A NARROW CHANNEL OF FAT THROUGH AN INCISION ALONG THE EYELID CAUSING THE LID TO CONTRACT AND FOLD THE RESULT ROUNDER EYES SHARING THE COUCH WITH MS YU IS MS PARK A PARTTIME ART TEACHER IN HER LATE 30S WHO HAS JUST HAD HER EYES DONE HER PARENTS SHE BELIEVES WOULD NEVER HAVE APPROVED OF COSMETIC WORK SO SHE WAITED UNTIL AFTER HER MOTHER DIED TO HAVE THE OPERATION SHE HASN'T TOLD HER FATHER YET I SEE PEOPLE IN AMERICA WITH BIG EYES AND I NEEDED TO LOOK OLDER AND PRETTIER FOR MY JOB SHE SAYS BUT SINCE BEAUTY IS IN THE EYE OF THE BEHOLDER NOT EVERYONE IS SATISFIED WITH THE RESULTS OF SURGERY PARTICULARLY WHEN IT IS BOTCHED KIM YOUNG JIN'S 29YEAROLD NURSE AGREED TO HAVE HER NOSE LIFTED FOUR YEARS AGO AT THE ENCOURAGEMENT OF A PREVIOUS EMPLOYER A GENERAL PRACTITIONER WITH LITTLE EXPERIENCE IN PLASTIC SURGERY HE INSERTED THE BLOCK THROUGH AN INCISION ALONG THE RIDGE OF HER NOSE RATHER THAN THROUGH THE NOSTRIL AND STITCHED IT IN CROOKED A LESSEDUCATED CUT SAYS DR KIM WHO HAS SINCE REALIGNED HIS NURSE'S NOSE MALPRACTICE IS INEVITABLE IN KOREA'S PLASTICSURGERY INDUSTRY WHICH HAS YET TO BE RECOGNIZED AS A LEGITIMATE SPECIALTY BY GOVERNMENT HEALTH OFFICIALS AND IS THUS UNREGULATED POTENTIAL SUCKERS ABOUND ACCORDING TO KIM YOUNG HO TOO MANY PEOPLE REGARD COSMETIC SURGERY AS A CURE FOR EMOTIONAL PROBLEMS PARTICULARLY MARITAL ONES ONCE A HUSBAND DRAGGED HIS WIFE INTO MY OFFICE AND TOLD ME HE WANTED HER TO HAVE A BREAST AUGMENTATION DR KIM SAYS I ASKED HIM 'WHY DON'T YOU LIVE WITH A MANNEQUIN' SOMETIMES I CONSIDER MYSELF A PSYCHIATRIST WITH A KNIFE DR KIM BELIEVES THE SCENE WILL CHANGE EVERYTHING IS CENTERED ON WESTERN CULTURE NOW HE SAYS BUT IF WE BECOME THE DOMINANT CULTURE THE ASIAN LOOK WILL BE FAVORED SO WILL THE NEXT GENERATION OF PLASTIC SURGEONS BE ORIENTALIZING WHITE PEOPLE IN MANHATTAN AND BEVERLY HILLS DR KIM THINKS A MOMENT I DON'T KNOW OF A PROCEDURE TO MAKE WESTERN EYES LOOK ASIAN HE SAYS BUT I'M SURE IT'S POSSIBLE 9311230028 931123 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BRUSH CREEK MINING & DEVELOPMENT CO A RIGHTS OFFERING OF 2 MILLION TO 15 MILLION OF COMMON SHARES FIDELITY NATIONAL FINANCIAL INC A UNIT OF UNIHEALTH AMERICA AN OFFERING OF UP TO 160 MILLION OF LIQUID YIELD OPTION NOTES VIA MERRILL LYNCH & CO HOMESTYLE BUFFET INC A SHELF OFFERING FOR UP TO 2 MILLION UNITS EACH UNIT CONSISTING OF TWO COMMON SHARES AND ONE COMMON SHARE PURCHASE WARRANT VIA BARCLAY INVESTMENT INC AND COHIG & ASSOCIATES INC JACKPOT ENTERPRISES INC AN OFFERING OF 80 MILLION 92 MILLION IF OVERALLOTMENT OPTIONS ARE EXERCISED OF CONVERTIBLE SUBORDINATED DEBENTURES VIA BEAR STEARNS & CO AND WERTHEIM SCHRODER & CO NAUTICA ENTERPRISES INC AN OFFERING OF 1950000 COMMON SHARES PACIFICARE HEALTH SYSTEMS INC AN OFFERING OF 500000 OF ITS CLASS A COMMON SHARES VIA DEAN WITTER REYNOLDS INC AND DILLON READ & CO U S WEST COMMUNICATIONS INC A UNIT OF U S WEST INC A SHELF OFFERING OF UP TO 500 MILLION OF DEBT SECURITIES FIDELITY NATIONAL FINANCIAL INC ISN'T A UNIT OF UNIHEALTH AMERICA AS WAS STATED IN YESTERDAY'S RECENT SEC FILINGS COLUMN 9311230027 931123 COMMODITIES NEW WAVE OF PROFITTAKING PUSHES DOWN PRICES OF GRAIN FUTURES LED BY JANUARY SOYBEANS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO GRAIN FUTURES PRICES FELL AS SPECULATORS TOOK PROFITS IN WHAT ANALYSTS CALLED AN OVERBOUGHT MARKET AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR JANUARY DELIVERY LED THE WAY PLUNGING 825 CENTS TO SETTLE AT 6795 A BUSHEL THE DECEMBER CORN FUTURES CONTRACT FELL 35 CENTS TO 27825 A BUSHEL WHILE DECEMBER WHEAT FELL 125 CENTS TO 3565 A BUSHEL YESTERDAY'S PRICE DECLINES REPRESENT THE LATEST WAVE OF PROFITTAKING AFTER A MAJOR SURGE IN GRAIN FUTURES PRICES OVER THE PAST COUPLE OF WEEKS BETWEEN NOV 9 WHEN THE US AGRICULTURE DEPARTMENT RELEASED A BULLISH CROP REPORT AND NOV 11 THE PRICE OF THE DECEMBER CORN CONTRACT RALLIED TO 288 A BUSHEL FROM 263 A BUSHEL A 95 INCREASE BETWEEN NOV 9 AND NOV 16 THE JANUARY SOYBEAN CONTRACT ROSE TO 692 FROM 640 AN INCREASE OF ABOUT 8 BUT IN RECENT DAYS PRICES HAVE EBBED AS COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY AND OTHER SPECULATORS HAVE SOLD OFF POSITIONS IN GRAIN FUTURES CONTRACTS WHAT WE'RE SEEING IS LIQUIDATION AND PROFITTAKING ON A LACK OF NEWS IN A TECHNICALLY OVERBOUGHT MARKET SAID DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO ANOTHER FACTOR THAT MAY HAVE HELPED PULL PRICES DOWN YESTERDAY WERE REPORTS OF RAIN IN SOYBEANGROWING REGIONS OF BRAZIL OVER THE WEEKEND RAIN WAS NEEDED TO SPEED CROPS' GERMINATION SAID FRANK STEARNS GRAIN ANALYST FOR REFCO INC AFTER THE CBOT SESSION GRAIN TRADERS ANALYZED A WEEKLY EXPORTINSPECTIONS REPORT THAT APPEARED TO HAVE BULLISH IMPLICATIONS MR STEARNS SAID THE REPORT SHOWED INSPECTIONS OF 195 MILLION BUSHELS OF SOYBEANS BEING READIED FOR EXPORT SUBSTANTIALLY MORE THAN THE 11 MILLION TO 13 MILLION BUSHELS THAT MOST IN THE GRAIN INDUSTRY HAD ESTIMATED BASICALLY THAT SHOWS A LITTLE MORE AGGRESSIVE SOYBEAN EXPORTS THAN PEOPLE WERE EXPECTING MR STEARNS SAID THE REPORT MAY PUSH SOYBEAN FUTURES PRICES UP SLIGHTLY TODAY HE SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDEOIL FUTURES PRICES SETTLED ONLY SLIGHTLY HIGHER AND PRODUCTS PRICES SETTLED LOWER IN LACKLUSTER TRADING AMID SIGNS OF DISAGREEMENT AMONG MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ON THE EVE OF OPEC'S GATHERING IN VIENNA THEY ARE MEETING IN AN EFFORT TO SET A STRATEGY TO PROP UP OIL PRICES THE TRADING SESSION BEGAN WITH PRICES RISING SPURRED BY A REPORT THAT NIGERIA AND OTHER PRODUCERS SUPPORT AN OUTPUT CUT OF 2 OR 500000 BARRELS A DAY TO THE PRODUCTION CEILING OF 245 MILLION BARRELS DAILY SET IN SEPTEMBER BUT PRICES FELL SHARPLY ON A MIDDAY REPORT THAT QUOTED KUWAITI OIL MINISTER ALI ALBAGHLI AS SAYING HIS COUNTRY DIDN'T FEEL FURTHER OPEC ACTIONS WERE NECESSARY LATER PRICES RECOVERED SOMEWHAT TRADERS SAY IT APPEARS IT WILL BE INCREASINGLY DIFFICULT FOR OPEC TO AGREE ON A RESOLUTION LIVESTOCK & MEATS LIVESTOCK FUTURES PRICES ROSE SHARPLY ON STRENGTH IN THE CASH MARKET FOR RED MEAT AT THE CHICAGO MERCANTILE EXCHANGE PORK BELLIES OR UNCURED BACON FOR FEBRUARY DELIVERY WERE UP 185 CENTS TO 5605 CENTS A POUND THE PRICE OF THE DECEMBER HOG FUTURES CONTRACT ROSE 055 CENT TO 459 CENTS A POUND AND THE DECEMBER CATTLE CONTRACT CLIMBED 032 CENT TO 735 CENTS A POUND TRADITIONALLY DEMAND FOR RED MEAT TAPERS OFF DURING THE TWO WEEKS BEFORE THANKSGIVING AS RETAILERS SHIFT THEIR FOCUS TO TURKEY AND OTHER POULTRY BY NOW HOWEVER MOST RETAILERS HAVE BOUGHT THEIR THANKSGIVING POULTRY STOCKS AND ARE BEGINNING TO RETURN TO RED MEAT ANALYSTS SAID 9311230026 931123 HEARD ON THE STREET COUNTRYWIDE CREDIT SHARES ARE HURT BY FEARS OF RISING INTEREST RATES DECLINING MORTGAGES BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL FOR YEARS COUNTRYWIDE CREDIT DEFIED SKEPTICS WHO WONDERED HOW LONG THE NATION'S LARGEST MORTGAGE BANKER COULD KEEP UP ITS BLISTERING GROWTH RATE BUT AT YESTERDAY'S 24 3/4 OFF 1 1/8 THE STOCK IS UNDER PRESSURE THAT SOME THINK COULD LAST AWHILE THE MORTGAGEBANKING STOCK GROUP IS UNDER FIRE BECAUSE INVESTORS BELIEVE RISING INTEREST RATES WILL CHOKE OFF CREATION OF HOME MORTGAGES MORTGAGE BANKERS ORIGINATED MORE THAN HALF THIS YEAR'S EXPECTED 11 TRILLION OF NEW MORTGAGES COMPARED WITH LESS THAN A THIRD OF THE 550 BILLION ORIGINATED JUST TWO YEARS AGO A DROP IN ORIGINATION VOLUME WILL SET OFF A FIERCE PRICE WAR PREDICTS JONATHAN GRAY OF SANFORD C BERNSTEIN & CO COUNTRYWIDE HAS MUCH TO LOSE FROM A PRICE WAR SOME ANALYSTS SAY THOMAS O'DONNELL OF PRUDENTIAL SECURITIES BELIEVES THE COMPANY WILL EARN 310 A SHARE FOR THE FISCAL YEAR ENDING IN FEBRUARY WELL BELOW THE ZACKS CONSENSUS ESTIMATE OF 324 A SHARE STEVEN EISMAN OF OPPENHEIMER RECENTLY REMOVED COUNTRYWIDE FROM HIS RECOMMENDED LIST TOO PEGGING THE COMPANY'S EARNINGS AT 295 EVEN IF BUSINESS PICKS UP IN THE NEXT THREE MONTHS MIDNOVEMBER SHORT INTEREST OR THE AMOUNT OF BORROWED STOCK SOLD IN ANTICIPATION OF A PRICE DECLINE JUMPED 46 FROM TWO MONTHS EARLIER NOT EVERYONE SEES A BLEAK PICTURE OF COURSE OREN KRAMER WHO RUNS BOSTON PROVIDENT PARTNERS A PRIVATE INVESTMENT PARTNERSHIP KNOWN AS A HEDGE FUND LIKES COUNTRYWIDE BECAUSE HE FEELS IT WILL GAIN MARKET SHARE BY CONTINUING TO GROW AT A 15 ANNUAL CLIP HE BELIEVES COUNTRYWIDE HAS BEEN SO ASSIDUOUS IN BRACING ITSELF FOR THIS YEAR'S WAVE OF MORTGAGE PREPAYMENTS BY REFINANCING HOMEOWNERS THAT IT'S NOW AHEAD OF THE GAME POISED TO END FISCAL 1994 WITH AN ESTIMATED 45 MILLION CUSHION COUNTRYWIDE HAS BEEN SEEN AS A CATEGORY KILLER A MASS PRODUCER THAT CRUSHES THE COMPETITION WITH ITS HUGE VOLUME OF BUSINESS COMPETITORS SAY COUNTRYWIDE HAS UNDERCUT THEM BY AS MUCH AS ONE PERCENTAGE POINT ON LOANS IN PART BY USING SALARIED BACKOFFICE CLERKS INSTEAD OF COMMISSIONED LOAN OFFICERS IN ITS PUSH FOR GROWTH COUNTRYWIDE AUTOMATICALLY REFINANCES MORTGAGES WHEN RATES SLIP HALF A PERCENTAGE POINT BELOW A HOMEOWNER'S CURRENT RATE AND THE COMPANY RECENTLY STARTED OFFERING NOEQUITY MORTGAGES FOR SOME HOMEOWNERS STUCK WITH HIGHCOST MORTGAGES IN HOMES THAT HAVE FALLEN IN VALUE BUT THE MOST HOTLY DEBATED ASPECT OF COUNTRYWIDE'S BUSINESS IS THE WAY IT ACCOUNTS FOR ITS HUGE MORTGAGESERVICING PORTFOLIO LIKE ITS RIVALS COUNTRYWIDE HAS BEEN BUILDING ITS SERVICE PORTFOLIO AS A HEDGE AGAINST RISING INTEREST RATES THE IDEA IS THAT WHEN RATES RISE MORTGAGE PREPAYMENTS WILL SLOW MAKING THE SERVICING OF EXISTING MORTGAGES MORE PROFITABLE FOR A LONGER PERIOD AND COMPENSATING FOR LOWER ORIGINATIONS COUNTRYWIDE HAS BEEN ORIGINATING ABOUT 5 BILLION IN NEW MORTGAGES A MONTH ALMOST ITS TOTAL VOLUME FOR THE FISCAL YEAR ENDED FEBRUARY 1991 BY FISCAL YEAR END ITS SERVICING PORTFOLIO COULD TOP 100 BILLION COUNTRYWIDE TAKES ADVANTAGE OF A DISCREPANCY IN ACCOUNTING THAT ALLOWS PURCHASED SERVICING RIGHTS TO BE CAPITALIZED OR REFLECTED ON ITS BALANCE SHEET BUT DOESN'T ALLOW MORTGAGE BANKERS THE SAME ACCOUNTING TREATMENT FOR SERVICING RIGHTS ON MORTGAGES THEY ORIGINATE AND KEEP THE FINANCIAL ACCOUNTING STANDARDS BOARD IS REVIEWING WHETHER TO ALLOW ALL SERVICING RIGHTS TO BE CAPITALIZED CURRENTLY COUNTRYWIDE CAPITALIZES 834 MILLION OR 116 OF THE VALUE OF THE LOANS IN THE SERVICING PORTFOLIO THE REST OF THE INDUSTRY PREFERS TO PUT A SMALLER PERCENTAGE SOMETIMES TWOTHIRDS AS MUCH ON THE BALANCE SHEET THAT MEANS COUNTRYWIDE WILL HAVE BIGGER CONTINUING EXPENSES THAN THE COMPETITION BECAUSE THE AMOUNT CAPITALIZED IS TREATED AS AN EXPENSE AND WRITTEN OFF AGAINST EARNINGS GRADUALLY OVER TIME UNTIL NOW THE INDUSTRY'S PROBLEM HAS BEEN LOW NOT HIGH INTEREST RATES LOW RATES PROPELLED REFINANCINGS WHICH HAVE FORCED EVERY MORTGAGE BANKER TO WRITE DOWN THE VALUE OF ITS SERVICING PORTFOLIO EXCEPT FOR COUNTRYWIDE ITS HEDGING OPERATION HAS BEEN A MAJOR SOURCE OF PROFIT IN THE FIRST SIX MONTHS OF THE YEAR HEDGE GAINS TOTALED 71 MILLION PRETAX FIVE TIMES THE GAIN IN A SIMILAR PERIOD LAST YEAR THIS WHACKED THE LATEST HALF'S AMORTIZATION EXPENSE TO 67 MILLION FROM 138 MILLION BEFORE THE HEDGING SOME FEAR COUNTRYWIDE'S HEDGING WON'T BE AS PROFITABLE AS IN THE PAST IF INTEREST RATES CONTINUE TO RISE YEAR ENDED FEB 28 1993 SECOND QUARTER AUG 31 1993 NOTE PERSHARE FIGURES ARE FULLY DILUTED AND REFLECT 5 STOCK DIVIDEND PAID IN APRIL 1993 9311230025 931123 BUSINESS BRIEF HANSON PLC US UNIT'S AXELSON DIVISION TO BE ACQUIRED BY WHEATLEY HANSON PLC'S US UNIT SAID IT WILL SELL ITS OILFIELD EQUIPMENTMANUFACTURING UNIT AXELSON INC TO WHEATLEY TXT CORP FOR 80 MILLION WHEATLEY A TULSA OKLA OILFIELD SERVICES COMPANY ALSO WILL ASSUME 27 MILLION IN DEBT THE SALE IS SUBJECT TO ARRANGEMENT OF FINANCING AND CERTAIN GOVERNMENT APPROVALS HANSON IS A BRITISHAMERICAN INDUSTRIAL MANAGEMENT CORPORATION AXELSON OF LONGVIEW TEXAS POSTED OPERATING PROFIT OF 9 MILLION ON SALES OF 59 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 9311230024 931123 CAPTAIN SPEAKING CLINTON'S INTERVENTION HALTS THE COSTLY STRIKE AT AMERICAN AIRLINES AFTER APPEAL FROM PRESIDENT SIDES AGREE TO ARBITRATION IN BITTER LABOR DISPUTE THANKSGIVING DINNER FOR ALL BY BRUCE INGERSOLL AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL AMERICAN AIRLINES WILL BE HEADING TOWARD BUSINESS AS USUAL BECAUSE OF SOME TIMELY AND UNUSUAL CAJOLING BY PRESIDENT CLINTON AMERICAN AND ITS STRIKING FLIGHT ATTENDANTS AGREED TO ACCEPT ARBITRATION OF THEIR DIFFERENCES AFTER THE PRESIDENT TELEPHONED BOTH SIDES FROM THE OVAL OFFICE HIS INTERVENTION ENDS THE FIVEDAY STRIKE THAT WAS COSTING THE UNIT OF AMR CORP MORE THAN 10 MILLION A DAY DISRUPTING TRAVEL NATIONWIDE AND THREATENING TO RUIN THE THANKSGIVING HOLIDAY FOR THOUSANDS OF AMERICANS THE FLIGHT ATTENDANTS AGREED TO GO BACK TO WORK AND THE AIRLINE AGREED NOT TO REPLACE THEM THE ACCOMMODATION WAS REACHED AFTER SENIOR WHITE HOUSE ADVISER BRUCE LINDSEY ACTED AS GOBETWEEN IN A SERIES OF NEGOTIATIONS THIS WAS THEIR AGREEMENT NOT OURS SAID A SENIOR WHITE HOUSE OFFICIAL BUT IT WOULDN'T HAVE BEEN SEALED WITHOUT PRESIDENT CLINTON'S STRONG ENCOURAGEMENT AMR CHAIRMAN ROBERT L CRANDALL EARLIER HAD REJECTED A PROPOSAL BY THE UNION TO SEEK FEDERAL MEDIATION YESTERDAY WHILE THE WHITE HOUSE DESCRIBED THE PRESIDENT'S ROLE AS FACILITATING THE END OF THE STRIKE MR CRANDALL SAID HE WAS LEANED ON FOR MR CRANDALL ARBITRATION WAS PREFERABLE TO THE THREAT OF A PRESIDENTIAL EMERGENCY BOARD STEPPING INTO THE FRAY APPOINTMENT OF SUCH A BOARD IS THE NORMAL WAY THE GOVERNMENT ENDS A TRANSPORTATION STRIKE DEEMED TO CAUSE A NATIONAL EMERGENCY IT IS CLEARLY UNUSUAL FOR THE PRESIDENT TO INTERVENE IN A MATTER OF THIS TYPE MR CRANDALL SAID AT A PRESS CONFERENCE HE MENTIONED THE IMPACT ON EMPLOYMENT THE IMPACT ON TRAVEL AND TOURISM I FELT IT WAS INCUMBENT ON ME TO ACCEPT HIS SUGGESTION SO I DID MR CLINTON DENIED PUTTING PRESSURE ON THE TWO SIDES THE WHITE HOUSE HAS BEEN ACTIVELY INVOLVED ALL MORNING TRYING TO BRING THE PARTIES TO THIS POINT HE SAID AT AN AFTERNOON PRESS CONFERENCE BUT TO BE FAIR THEY WERE WILLING TO BE BROUGHT TO THIS POINT IN STEPPING IN MR CLINTON SHOWED ONCE AGAIN THAT HE IS WILLING TO INTERVENE IN TRANSPORTATION ISSUES EARLIER THIS YEAR THE ADMINISTRATION ENCOURAGED NORTHWEST AIRLINES TO STOP CUTTING FARES THAT WERE PARTICULARLY DETRIMENTAL TO A SMALLER RIVAL AND THE JUSTICE DEPARTMENT IS LOOKING INTO HOW DELTA AIR LINES REWARDS TRAVEL AGENTS IN SALT LAKE CITY WHERE UPSTART MORRIS AIR IS TRYING TO GAIN MARKET SHARE IN THE AMERICAN STRIKE HOWEVER PRESIDENT CLINTON INTERCEDED IN A MUCH MORE INTRACTABLE SITUATION AMR FIGHTING TO CUT COSTS AND RETURN TO PROFITABILITY AFTER SUSTAINING BILLIONS OF DOLLARS IN LOSSES WANTS TO GAIN GREATER CONTROL OVER THE 21000 FLIGHT ATTENDANTS ON ITS 2600 DAILY FLIGHTS INDEED THE FIGHT BETWEEN AMERICAN AND ITS FLIGHT ATTENDANTS IS MORE OVER LIFESTYLE THAN OVER PAY AND IS VIEWED BY SOME AS A CONFRONTATION THAT COULD SET THE TONE FOR MANAGEMENTLABOR RELATIONS IN THE 1990S AMR WANTS FLIGHT ATTENDANTS TO SIT AT HOME ON RESERVE ONE MONTH OUT OF EVERY FOUR RECEIVING A LOWERTHANNORMAL SALARY PREPARED TO FLY ANYWHERE AT A MOMENT'S NOTICE IF AMERICAN DECIDES IT NEEDS THEM IT WANTS THEM TO CLEAN UP THE CABINS AT THE END OF FLIGHTS AND SERVE MORE PASSENGERS MORE QUICKLY WITH LESS HELP IT WANTS TO HIRE FEWER OF THEM AND MAKE IT HARDER FOR THEM TO STRING TOGETHER THE TIME OFF THAT FLIGHT ATTENDANTS TREASURE BECAUSE IT HELPS MAKE UP FOR THE LOW PAY PRESIDENTS HAVE INTERCEDED IN LABOR DISPUTES BEFORE TO AVERT A CRIPPLING STEEL STRIKE HARRY TRUMAN SEIZED THE NATION'S STEEL MILLS IN 1952 AN ACT THAT WAS LATER RULED UNCONSTITUTIONAL BY THE SUPREME COURT AND RONALD REAGAN HELPED BREAK AN ILLEGAL STRIKE BY FEDERAL AIRTRAFFIC CONTROLLERS IN 1981 BY ORDERING THE DISMISSAL OF THOSE WORKERS WHO WOULDN'T OBEY A BACKTOWORK ORDER BUT PRESIDENT CLINTON'S INVOLVEMENT IN THE AMERICAN AIRLINES DISPUTE JUST PICKING UP THE PHONE AND DIVING IN STRUCK LABOR EXPERTS AS PARTICULARLY BOLD ADMINISTRATION OFFICIALS CAUTIONED THAT THE PRESIDENT SAW THIS STRIKE AS UNIQUE AND SAID HE HAS NO PLANS TO BECOME INVOLVED IN OTHER WALKOUTS THEY ADDED HOWEVER THAT HE WAS CONCERNED BOTH ABOUT THE IMPACT ON THE AIRLINE INDUSTRY AND ABOUT THE MANY THOUSANDS OF PASSENGERS WHO WERE BEING INCONVENIENCED THIS HOLIDAY WEEK THE WHITE HOUSE BECAME INTENSELY INVOLVED OVER THE WEEKEND AFTER MONITORING THE DISPUTE FOR MORE THAN A WEEK AND DEBATING WHAT THE ADMINISTRATION'S ROLE SHOULD BE THE NATIONAL ECONOMIC COUNCIL FOR INSTANCE HAD BEEN ASKED BY MR CLINTON TO MONITOR THE STRIKE THE PRESIDENT AIDES SAY GAVE THEM THE GREEN LIGHT TO BECOME ENGAGED SO CHRISTINE VARNEY SECRETARY TO THE CABINET ON SATURDAY AND SUNDAY REPEATEDLY CALLED THE WHITE HOUSE'S PERSONNEL DIRECTOR MR LINDSEY WHO WAS ON THE WEST COAST WITH THE PRESIDENT TO PASS ALONG REPORTS SHE RECEIVED FROM TRANSPORTATION SECRETARY FEDERICO PENA AND LABOR SECRETARY ROBERT REICH ON SUNDAY NIGHT MR PENA ALERTED VICE PRESIDENT AL GORE TO A NEW DEVELOPMENT IN THE STRIKE BOTH SIDES SEEMED INTERESTED IN SOMEHOW BREAKING THE IMPASSE AND MR PENA TOLD MR GORE THAT WHITE HOUSE INTERVENTION WOULD BE HELPFUL BY MONDAY MORNING MR LINDSEY WAS IN CHARGE OF THE OPERATION HE ASKED JOAN BAGGETT THE WHITE HOUSE POLITICAL DIRECTOR WHO HAS CLOSE TIES TO ORGANIZED LABOR TO SOUND OUT THE UNION LEADERSHIP ON THE POSSIBILITY OF ARBITRATION THE FLIGHT ATTENDANTS WHO HAD ALREADY BEEN PUSHING FOR WHITE HOUSE INVOLVEMENT RESPONDED POSITIVELY AND SHE RELAYED THAT REACTION TO MR LINDSEY AT THE SAME TIME MR LINDSEY UNDERTOOK THE TOUGHER CHORE OF PERSUADING AMERICAN AIRLINES THAT ARBITRATION WOULD BE IN ITS BEST INTEREST IN CONVERSATIONS WITH THOSE REPRESENTING THE AIRLINE MR LINDSEY IS SAID TO HAVE NOTED THE AMOUNT OF MONEY AMERICAN WAS LOSING AND TO HAVE SUGGESTED THAT IT WAS IN THE AIRLINE'S INTEREST TO FIND A WAY OUT OTHER OPTIONS SUCH AS MEDIATION WERE DISCUSSED BUT THE AIRLINE FINALLY AGREED THAT ARBITRATION WAS THE BEST OF ITS OPTIONS MEDIATION CARRIED A HUGE RISK FOR THE AIRLINES THE UNION COULD CALL ANOTHER STRIKE SAY AT CHRISTMAS IF IT DIDN'T LIKE THE DIRECTION OF THE TALKS ARBITRATION ENTAILS AN AGREEMENT BY BOTH SIDES TO BE BOUND BY THE DECISION OF A THIRD PARTY IF THEY CAN'T AGREE THEMSELVES ALEXIS HERMAN DIRECTOR OF THE WHITE HOUSE'S PUBLIC LIAISON OFFICE WAS DISPATCHED TO TOUCH BASE WITH THE OTHER MAJOR AIRLINES TO MAKE SURE THEY DIDN'T SERIOUSLY OBJECT TO THE PLAN THAT THE WHITE HOUSE PUT IN PLACE THE OTHER AIRLINES WERE VERY SUPPORTIVE MS HERMAN SAYS SHE RELAYED THAT INFORMATION TO ROBERT RUBIN CHAIRMAN OF THE NATIONAL ECONOMIC COUNCIL WHO WAS ASSISTING MR LINDSEY ONE OF THE LAST STICKING POINTS OVERCOME WITH WHITE HOUSE HELP INVOLVED SOCALLED WORK RULES BOTH SIDES AGREED THAT THE FLIGHT ATTENDANTS WOULD HONOR RULES ISSUED BY THE AIRLINE AFTER THE UNION'S CONTRACT EXPIRED OCT 29 RATHER THAN THE PREVIOUS SET OF RULES THAT AGREEMENT SET THE STAGE FOR PRESIDENT CLINTON'S INTERVENTION HE WAS PULLED OUT OF AN EARLYAFTERNOON MEETING WITH THE PRESIDENT OF THE PHILIPPINES TO MAKE THE CALLS IN EACH INSTANCE MR CLINTON RECAPITULATED HIS UNDERSTANDING OF WHERE MATTERS STOOD JUST TO MAKE SURE WE ARE ON THE SAME PAGE AS A SENIOR OFFICIAL PUT IT AND THEN URGED MR CRANDALL AND DENISE HEDGES PRESIDENT OF THE FLIGHT ATTENDANTS' UNION TO ACCEPT ARBITRATION THE CALLS TOOK THREE TO FIVE MINUTES APIECE SOME LABOR ANALYSTS SUGGESTED THAT MR CLINTON MIGHT HAVE ACTED AS A FAVOR TO ORGANIZED LABOR WHICH HE BADLY DISAPPOINTED LAST WEEK WITH HIS SUCCESS IN PUSHING THROUGH THE NORTH AMERICAN FREE TRADE AGREEMENT I'M NOT SURE WHETHER PRESIDENT CLINTON WOULD HAVE DONE THIS IF THERE WAS NOT A NAFTA LAST WEEK SPECULATED SAR LEVITAN DIRECTOR OF THE CENTER FOR SOCIAL POLICY AT GEORGE WASHINGTON UNIVERSITY WHETHER HE TWISTED MR CRANDALL'S ARM OR BROKE IT THIS IS A DAY WHERE LABOR SAYS BILL CLINTON IS OUR FRIEND' HOWEVER WHITE HOUSE OFFICIALS QUICKLY REJECTED THE SUGGESTION THAT THE PRESIDENT INTERVENED TO PATCH THINGS UP WITH LABOR THE PRESIDENT'S INTERVENTION RESTORES ORDER TO THE THANKSGIVING PLANS OF THOUSANDS WITH THE AIRLINE EXPECTING TO FLY AT 65 CAPACITY TODAY AND 85 BY TOMORROW BUT IT LEAVES UNRESOLVED ISSUES THAT LED TO THE STANDOFFPAY WORK RULES AND STAFFING LEVELS THE DISPUTES WERE AGGRAVATED BY AN UNDERCURRENT OF PERCEIVED SEXISM BY FLIGHT ATTENDANTS A MAJORITY OF WHOM ARE WOMEN TRADITIONALLY THE WEAKEST OF THE AIRLINE UNIONS THE FLIGHT ATTENDANTS ARE CONVINCED THEY ARE BEING ASKED FOR CONCESSIONS THAT THE MORE POWERFUL PILOTS' UNION WOULD NEVER AGREE TO EARLY ON AMERICAN MANAGEMENT APPARENTLY EXPECTED ENOUGH FLIGHT ATTENDANTS TO CROSS THE PICKET LINE TO ENABLE THE CARRIER TO FLY THROUGH THE STRIKE I HOPE THAT MR CRANDALL WILL HAVE A BETTER FEELING TOWARD LABOR UNIONS AND KNOW THAT WE HAVE AS MUCH AT STAKE IN THE FUTURE OF THIS COMPANY AS HE DOES SAID PAM MONAHAN OF ARLINGTON TEXAS A FLIGHT ATTENDANT WHO HONORED THE STRIKE THERE'S STILL A TREMENDOUS AMOUNT OF BITTERNESS TOWARD MANAGEMENT I HOPE IT WILL HEAL BUT ONLY TIME WILL TELL THE TWO SIDES DESCRIBE MANAGEMENT'S CONTRACT PROPOSAL DIFFERENTLY MR CRANDALL SAYS THE COMPANY HAS OFFERED AVERAGE YEARLY WAGE INCREASES OF 78 FOR FOUR YEARS THE UNION SAYS MANAGEMENT HAS OFFERED A ONETIME AVERAGE PAY RAISE OF 75 PLUS A 3 RAISE FOUR YEARS FROM NOW SALARIES CURRENTLY RANGE FROM 14000 TO 34000 A YEAR HOW BAD WAS THE ECONOMIC DAMAGE FOR AMERICAN COMPANY EXECUTIVES HAVE SAID THE AIRLINE WAS LOSING 10 MILLION TO 20 MILLION A DAY YET IMMEDIATE REACTION FROM WALL STREET TO THE STRIKE'S END WAS MIXED DAMAGING AS THE WALKOUT WAS ANALYSTS HAD ANTICIPATED MR CRANDALL'S USING IT TO PARE BACK HIS WORK FORCE AND ENSURE THAT AMR'S CONTRACT PROPOSAL NOT THE UNION'S WOULD ULTIMATELY TAKE EFFECT NOW THE RESULT MAY BE A CONTRACT THAT SPLITS THE DIFFERENCE THE STRIKE WAS COSTLY AND THE SOLUTION WILL BE COSTLY SAID SAMUEL BUTTRICK A KIDDER PEABODY & CO ANALYST FOR MR CRANDALL ENDING THE STRIKE WAS THE QUICKEST WAY TO STOP NOT ONLY THE FINANCIAL LOSSES BUT ALSO THE PUBLIC ILL WILL THAT WAS ACCUMULATING WHILE HE HAD PLEDGED ON SUNDAY THAT ALL AMERICAN PASSENGERS WOULD BE NOTIFIED BY EITHER THE AIRLINE OR A TRAVEL AGENT ABOUT THEIR FLIGHT STATUS MANY TRAVELERS WERE STILL LEFT IN THE DARK YESTERDAY THE COMPUTERS ARE GIVING US PROPAGANDA SAID BLAKE FLEETWOOD PRESIDENT OF PLANETARIUM/AMERICAN EXPRESS A NEW YORK TRAVEL AGENCY THEY SAY MOST OF THE FLIGHTS ARE LEAVING BUT PASSENGERS TELL US OTHERWISE INDEED AMERICAN WAS FAST LOSING CREDIBILITY WITH TRAVEL AGENTS WHO SELL 85 OF ITS TICKETS I CAN'T TELL PEOPLE IF WHAT'S ON MY COMPUTER IS TRUE SAID GARY TOPPING PRESIDENT OF GULF STREAM TRAVEL INC IN GULF STREAM ALA ARBITRATION WON'T BEGIN IMMEDIATELY THE COMPANY AND THE UNION FIRST WILL ENTER A SHORT NEGOTIATION PERIOD UNDER THE AUSPICES OF THE NATIONAL MEDIATION BOARD WHICH SUPERVISES LABOR TALKS FOR AIRLINES AND RAILROADS DURING WHICH THE TWO SIDES WILL SHOOT FOR TENTATIVE AGREEMENT ON AS MANY ISSUES AS POSSIBLE AT THE END OF THAT PROCESS THOSE ITEMS THAT THE TWO SIDES STILL CAN'T AGREE ON WILL BE PUT TO ARBITRATION THE ITEMS THAT ARE VERY LIKELY TO GO TO ARBITRATION ARE THE COMPANY'S PROPOSALS ON STAFFING AND SCHEDULING THE ISSUE OF PREFUNDING RETIREE BENEFITS AND PAY MR PENA IN AN INTERVIEW LAST NIGHT SAID HIS DEPARTMENT AND THE WHITE HOUSE TALKED IN DETAIL ABOUT NOT WANTING ANY ACTION THEY TOOK WITH THIS STRIKE TO ENCOURAGE OTHER UNIONS TO TAKE JOB ACTIONS THAT IS WHY WE MADE IT VERY CLEAR WE WERE NOT PLAYING THE ROLE OF NEGOTIATOR WE WERE NOT PLAYING THE ROLE OF MEDIATOR WE WERE NOT DISCUSSING TERMS THE TRANSPORTATION SECRETARY SAID ALL WE WERE DOING WAS SIMPLY TRYING TO ENCOURAGE THE PARTIES TO GO BACK TO MEDIATION BUT THE LABOR DISPUTE SHOWS MR PENA SAID THAT CHANGES ARE ON THE WAY FOR THE INDUSTRY HE SAID IT HAS REINFORCED HIS VIEW THAT THE MAJOR AIRLINES MUST FIND A WAY TO REDUCE THEIR COSTS AND BECOME MORE COMPETITIVE AS THEY FACE THE CHALLENGES FROM NEW LOWCOST OPERATIONS AIRLINE EXECUTIVES HE SAID HAVE TOLD HIM THEY MUST RESTRUCTURE WE ARE HOPEFUL MR PENA SAID THAT THEY CAN DO IT IN A CONCILIATORY FASHION AND A COOPERATIVE FASHION WITH EMPLOYEES JAMES S HIRSCH AND MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9311230023 931123 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY NOVEMBER 10 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9311230022 931123 TRAVELERS PLANS 4THQUARTER CHARGE DUE TO REAL ESTATE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS CORP WILL TAKE A 165 MILLION PRETAX CHARGE FOR REAL ESTATE LOSSES IN THE FOURTH QUARTER SUGGESTING THAT THE REAL ESTATE MESS IS NOT YET OVER FOR INSURANCE COMPANIES TRAVELERS SAID IT HAD TO TAKE THE CHARGE WHICH AMOUNTS TO 107 MILLION AFTER TAXES AFTER COMPARING THE VALUE OF ITS FORECLOSED PROPERTIES AGAINST RECENT SALES TRAVELERS BASED IN HARTFORD CONN SAID THE LOSS WILL LIKELY BE OFFSET BY INVESTMENT GAINS IN THE QUARTER ANALYSTS EXPECT OTHER INSURANCE COMPANIES TO ABSORB SIMILAR LOSSES BEFORE THE YEAR IS OVER I THINK YOU'RE GOING TO SEE MORE ANNOUNCEMENTS SAID DENNIS YESKEY A PARTNER WITH KENNETH LEVENTHAL & CO AN ACCOUNTING FIRM BUT HE BELIEVES THE LOSSES WILL BE MODERATE IN LAST YEAR'S FOURTH QUARTER TRAVELERS SET ASIDE 735 MILLION BEFORE TAXES 485 MILLION AFTER TAXES TO BUILD RESERVES ON FORECLOSED PROPERTIES THAT CHARGE RESULTED IN A FOURTHQUARTER LOSS OF 589 MILLION 538 A SHARE TRAVELERS HAS SOLD 15 BILLION OF FORECLOSED PROPERTY THIS YEAR TO BUYERS THAT INCLUDE GEORGE SOROS AND SAM ZELL AND MORE SALES ARE EXPECTED BEFORE THE YEAR IS OVER ONLY A SMALL PART OF THE LATEST CHARGE RELATES TO WRITEDOWNS ON PROPERTIES INCLUDED IN THIS YEAR'S SALES THE CHARGE COMES ON THE EVE OF TRAVELERS BEING MERGED INTO NEW YORKBASED PRIMERICA CORP WHICH HAS ANNOUNCED PLANS TO BUY THE 73 OF TRAVELERS STOCK IT DOESN'T ALREADY OWN FOR MORE THAN 4 BILLION THE COMBINATION IS EXPECTED TO OCCUR BEFORE YEAR END TRAVELERS MADE ITS ANNOUNCEMENT ABOUT THE FOURTHQUARTER CHARGE AFTER THE STOCK MARKET CLOSED TRAVELERS FINISHED THE DAY AT 31125 DOWN 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PRIMERICA EASED 875 CENTS TO 39125 THE TRAVELERS REAL ESTATE LOSS APPEARS TO FLY IN THE FACE OF A RECENT REPORT ISSUED BY THE AMERICAN COUNCIL OF LIFE INSURANCE WHICH INDICATED THAT THE REAL ESTATE SITUATION IS IMPROVING FOR INSURANCE COMPANIES THE TRADE GROUP SAID THE RATE OF DELINQUENT MORTGAGES DROPPED TO 635 AT JUNE 30 FROM 711 AT MARCH 31 IT'S AN IRRELEVANT NUMBER SAID MR YESKEY OF KENNETH LEVENTHAL HE SAID THE ACLI SURVEY ALSO SHOWED THAT RESTRUCTURINGS AND FORECLOSURES ROSE DURING THE PERIOD AND HE BELIEVES THAT WILL TRANSLATE INTO HIGHER LOSSES BY YEAR END 9311230021 931123 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FOREIGNFUNDED COMPANIES THAT GOT CHINA'S APPROVAL TO DO BUSINESS IN THE COUNTRY TOTALED A RECORD 150000 IN OCTOBER UP 15 AND TOPPING THE PREVIOUS HIGH OF 130000 IN JUNE WHICH IN TURN WAS UP 54 FROM A YEAR EARLIER NEW JOINT VENTURES LAST MONTH PLEDGED TO INVEST 10 BILLION INCREASING THE 1993 CONTRACTED FOREIGN INVESTMENT TO 200 BILLION ACTUAL INVESTMENT THIS YEAR TOTALS 50 BILLION FROM 50000 ENTERPRISES THE CHINA DAILY SAID THESE FIRMS WERE RESPONSIBLE FOR A THIRD OF CHINA'S 693 BILLION IN EXPORTS SO FAR THIS YEAR THE GROWTH REFLECTS CHINA'S EFFORTS TO ALLOW GREATER ACCESS TO THE DOMESTIC MARKET BY FOREIGN COMPANIES WHICH RECEIVE TAX BREAKS AND MORE OPERATING FREEDOM THAN WHOLLY OWNED CHINESE ENTERPRISES DESPITE THE BOOM IN THE PEARL RIVER DELTA WITH 30000 FOREIGNFUNDED VENTURES CHINESE OFFICIALS AT A HONG KONG ENTREPENEURS CONFERENCE SAID THE SOUTHERN AREA'S INVESTMENT ENVIRONMENT BADLY TRAILS THAT IN OTHER ASIAN ECONOMIES NEEDS CITED INCLUDE TAMING INFLATION AND IMPROVING TECHNOLOGY TRAINING AND THE LEGAL SYSTEM MOLDOVA IS APPEALING FOR REDUCED ENERGY CONSUMPTION WARNING THAT THE COUNTRY CAN'T AFFORD TO USE ELECTRICITY FOR HEATING OR HOT WATER THE GOVERNMENT ESTIMATED AT 24 MILLION THE COST TO MODERNIZE GENERATING STATIONS AND EQUIPMENT SAYING SEVERAL THOUSAND MILES OF POWER LINES WERE USELESS OR NEEDED REPAIRS MOLDOVA A FORMER SOVIET REPUBLIC SITUATED BETWEEN ROMANIA AND UKRAINE HAS RAISED ENERGY PRICES SEVERAL TIMES THIS YEAR AND INTRODUCED EMERGENCY MEASURES TO SAVE FUEL RUSSIA'S CENTRAL BANK PLANS TO EXPAND THE GOVERNMENTDEBT MARKET WITH THE INTRODUCTION OF SIXMONTH TREASURY BILLS POSSIBLY NEXT MONTH SINCE MAY THREEMONTH BILLS HAVE BEEN AUCTIONED ON BEHALF OF THE FINANCE MINISTRY WHICH ALSO BEGAN ISSUING ONEYEAR BONDS BACKED BY GOVERNMENT GOLD HOLDINGS IN SEPTEMBER INTRODUCTION OF SIXMONTH SECURITIES WOULD BE PART OF A WIDER EFFORT TO DEVELOP MARKETS FOR GOVERNMENT OBLIGATIONS TO ACCOMMODATE A LARGER SHARE OF RUSSIA'S BUDGET DEFICIT WHICH COULD TOTAL 457 BILLION IN THE FOURTH QUARTER NEXT YEAR AT LEAST 30 OF THE DEFICIT IS TO BE FINANCED WITH SECURITIES DEMAND FOR GOLD IN THE THIRD QUARTER FELL 4 FROM A YEAR EARLIER THE WORLD GOLD COUNCIL SAID IN LONDON CITING A 15 PLUNGE IN DEVELOPING MARKETS OF ASIA THE MIDEAST AND INDIA BECAUSE OF PRICE FLUCTUATIONS THE DROP BROUGHT DEMAND IN THE FIRST NINE MONTHS TO A 6 INCREASE GROWTH SLOWED FROM A 20 JUMP IN THE FIRST QUARTER AND A 1 RISE IN THE SECOND PERIOD BUT THE GOLD PRODUCERS' ASSOCIATION SAID JEWELRY MAKERS ARE LIKELY TO BUILD UP INVENTORIES PARTLY BECAUSE OF A 10 THIRDQUARTER RISE IN US DEMAND FOR JEWELRY PARIS'S 19THCENTURY GRAND PALAIS SITE OF SOME OF FRANCE'S MOST PRESTIGIOUS CULTURAL EXHIBITS WAS DECLARED STRUCTURALLY UNSOUND AND CLOSED FOR REPAIRS SHUTTING THE GLASSDOMED BUILDING ON THE CHAMPSELYSEES INTERRUPTED A SHOWING OF WORKS BY PAINTERS INCLUDING PIERRE BONNARD AND EDOUARD VUILLARD THAT WAS TO HAVE RUN UNTIL JANUARY ABOUT 20 OTHER EXHIBITS SCHEDULED FOR NEXT YEAR WILL BE CANCELED THE GRAND NAVE SECTION WILL BE CLOSED FOR 18 MONTHS TO TWO YEARS WHILE THE SORBONNE BRANCH THE NATURAL HISTORY MUSEUM AND A SECTION WITH THE NATIONAL GALLERIES MAY REOPEN BY THE END OF JANUARY SOME EUROPEAN COMMUNITY OFFICIALS SELECTED A DESIGN THEY WILL PROPOSE FOR THE 12NATION TRADE BLOC'S MONEY UNDER A PLAN TO MINT A COMMON CURRENCY BY THE END OF THE CENTURY THE COMPETITION RUN BY SOCIALIST DEPUTIES OF THE EUROPEAN PARLIAMENT ATTRACTED 796 ENTRIES THE WINNER 28YEAROLD CLAUDIA GRONEBAUM OF BERLIN DESIGNED A COIN BASED ON A FINGERPRINT AND A BANKNOTE WITH AN ABSTRACT BLUE AND GREEN PATTERN INSPIRED BY A HANDSHAKE BELGIAN TRADE UNIONS BEGAN A SERIES OF STRIKES PARALYZING ANTWERP EUROPE'S SECONDLARGEST PORT AND SLOWING COMMERCE IN OTHER PARTS OF BELGIUM MORE REGIONAL WALKOUTS ARE EXPECTED TOMORROW AND A NATIONWIDE STRIKE HAS BEEN CALLED FOR FRIDAY THE LABOR UNIONS WANT BELGIUM'S GOVERNMENT TO SOFTEN ITS TOUGH PACKAGE OF AUSTERITY MEASURES TO DEAL WITH THE BUDGET DEFICIT THE GOVERNMENT LAST WEEK UNVEILED THE PLAN TO INCREASE COMPETITIVENESS AND EMPLOYMENT AND TO CUT SOCIALSECURITY SPENDING THE MEASURES INCLUDE TAX INCREASES REDUCTIONS IN OUTLAYS FOR HEALTH AND FAMILY ALLOWANCES AND A FREEZE OF WAGES FOR THREE YEARS LABOR OFFICIALS SAID YESTERDAY'S ACTION WAS WELL SUPPORTED PARTICULARLY AFFECTING LARGER COMPANIES BUT RAILWAY AND POST OFFICE WORKERS DIDN'T JOIN IN ATHENS DECLARED AN EMERGENCY IN PARTS OF THE GREEK CAPITAL AFTER THREE DAYS OF RAINS CAUSED FLOODING THAT LEFT HOMES AND BUSINESSES WATERLOGGED WASHED AWAY CARS AND DISRUPTED PHONE AND ELECTRICITY SERVICES GREECE HAD BEEN HIT BY A WATER SHORTAGE CAIRO TRAFFIC POLICE HANDED OUT ALMOST 29000 SUMMONSES ON THE FIRST DAY OF A CAMPAIGN TO BRING ORDER TO THE EGYPTIAN CAPITAL'S CHAOTIC STREETS AMONG THE CITATIONS 690 FOR EXCESSIVE HORNHONKING 488 FOR DRIVING WITHOUT A LICENSE 1002 FOR PARKING IN FORBIDDEN ZONES AND 153 FOR GOING THE WRONG WAY ON ONEWAY STREETS 9311230020 931123 INTERNATIONAL EC MINISTERS ASSAIL PROPOSALS ON JOB CREATION FINANCE OFFICIALS OBJECT TO NUMERICAL TARGETS SHARED WORK TAX RISE BY JULIE WOLF AND JAMES PRESSLEY STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS EUROPEAN COMMUNITY FINANCE MINISTERS CRITICIZED KEY ELEMENTS OF THE EC COMMISSION'S DRAFT WHITE PAPER ON JOB CREATION ATTACKING ITS EMPHASIS ON NUMERICAL TARGETS WORKSHARING PROPOSALS AND INCREASED INDIRECT TAXES JUST 18 DAYS BEFORE AN EC SUMMIT DEDICATED TO ADDRESSING THE COMMUNITY'S HUGE UNEMPLOYMENT PROBLEM THE FINANCE MINISTERS' CRITICISMS SHOWCASED THE EC'S DIFFICULTY IN COMING TO GRIPS WITH A JOBLESS RATE THAT'S NEARLY 11 AND IS EXPECTED TO BE AT THAT LEVEL IF NOT HIGHER INTO 1995 THERE IS NO CHANCE WHATEVER THAT ANYTHING VERY CONCRETE IS GOING TO COME OUT OF THE WHITE PAPER IN THREE WEEKS' TIME SAID BRITAIN'S CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE REFLECTING WIDESPREAD DISMAY THAT THE MINISTERS WON'T HAVE AMPLE OPPORTUNITY TO ANALYZE THE FINAL WHITE PAPER WHICH HASN'T YET BEEN PRODUCED THE MINISTERS CALLED A SPECIAL MEETING FOR DEC 5 JUST FIVE DAYS BEFORE THE SUMMIT THE EC COMMISSION PRESIDENT JACQUES DELORS SOUGHT TO PORTRAY THE MEETING IN A MORE POSITIVE LIGHT HE STRESSED THAT THE REPORT REVIEWED BY FINANCE MINISTERS WASN'T THE DEFINITIVE VERSION AND TOOK THE OPPORTUNITY AT A NEWS CONFERENCE TO LASH BACK AT MR CLARKE AND OTHER CRITICS OF THE COMMISSION'S WORKSHARE INCENTIVE PROPOSAL WE'RE NOT TALKING ABOUT WINNERS AND LOSERS SAID MR DELORS INDICATING THAT THE COMMISSION WAS OBLIGED TO TACKLE DIFFICULT ISSUES SUCH AS WORKSHARE ARRANGEMENTS BEING DISCUSSED AT VOLKSWAGEN AG AND OTHER COMPANIES I DON'T UNDERSTAND THE OBSESSION OF CLARKE THAT THERE SHOULD ALWAYS BE A CLEAR VICTOR DO WE HAVE TO INSTALL A CRICKET PITCH AT OUR MEETINGS THE BELGIAN FINANCE MINISTER PHILIP MAYSTADT WHOSE COUNTRY NOW HOLDS THE EC PRESIDENCY WAS ALSO UPBEAT ABOUT THE DISCUSSION SAYING IT SET A GOOD FRAMEWORK FOR THE FINAL PRESUMMIT PUSH BUT EC DIPLOMATS SAID THAT ONLY ITALY SHOWED MUCH ENTHUSIASM FOR THE COMMISSION'S NUMERICAL TARGETS FOR AREAS SUCH AS INVESTMENT RATES AND EMPLOYMENT GROWTH WHILE CRITICISM WAS WIDESPREAD OF THE COMMISSION'S SUGGESTION FOR GOVERNMENTS TO INSTITUTE WORKSHARING INCENTIVES A MAIN ELEMENT OF THE COMMISSION'S INTERIM WHITE PAPER IS THAT GOVERNMENTS SHOULD IMPOSE NEW TAXES ON POLLUTANTS INVESTMENT AND SAVINGS OR A HIGHER VALUEADDED TAX TO COMPENSATE FOR REDUCTIONS IN SOCIAL SECURITY CHARGES TO EMPLOYERS BUT MR CLARKE SAID THAT NOT A SINGLE MINISTER HAD AGREED WITH FINANCING CUTS IN EMPLOYMENT TAXES THROUGH RAISING OR CREATING OTHER TAXES THERE'S NOT MUCH SCOPE FOR SHIFTING TAXATION FROM LABOR ONTO OTHER TAXES SAID THE IRISH FINANCE MINISTER BERTIE AHERN OTHER FORMS OF TAXATION BRING THEIR OWN PROBLEMS COMMISSION OFFICIALS HAVE LONG ACKNOWLEDGED THAT THEY HAD RESERVATIONS OVER WHETHER THE WHITE PAPER SHOULD INCLUDE NUMERICAL TARGETS SUCH AS THE GOAL TO CREATE 15 MILLION NEW JOBS BY THE YEAR 2000 BUT DECIDED TO INCLUDE THE NUMBERS IN THE INTERIM REPORT TO INDICATE THE HUGE SCOPE OF THE PROBLEM 9311230019 931123 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF FLOATINGRATE NOTES DUE NOV 24 1998 PRICED AT PAR TO YIELD 3981 THE NOTES WILL PAY QUARTERLY AND FLOAT MONTHLY 10 BASIS POINTS ABOVE THE COSTOFFUNDS INDEX ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PHOTONICS CORP INITIAL OFFERING OF 19 MILLION COMMON SHARES PRICED AT 9 EACH THROUGH UNDERWRITERS LED BY HJ MEYERS & CO TOSCO CORP 26 MILLION COMMON SHARES PRICED AT 3075 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO TCW/DW TERM TRUST 2000 INITIAL OFFERING OF 50 MILLION SHARES OF BENEFICIAL INTEREST PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC TORCH ROYALTY TRUST 86 MILLION UNITS PRICED AT 21 A UNIT ACCORDING TO TRUST MANAGER TORCH ENERGY ADVISORS INC UNDERWRITERS INCLUDE SMITH BARNEY SHEARSON INC KIDDER PEABODY & CO AND PAINEWEBBER INC ILLINOIS HOUSING DEVELOPMENT AUTHORITY 1037 MILLION OF 1993 SERIES A HOUSINGDEVELOPMENT BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 31 IN 1994 TO 6 IN 2018 MOODY'S INVESTORS SERVICE INC RATED THE BONDS SINGLEA1 AND STANDARD & POOR'S CORP ASSIGNED A SINGLEAPLUS RATING NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 693 MILLION OF 1993 SERIES A REVENUE BONDS PRICED BY A CHEMICAL SECURITIES INC GROUP INCLUDED ARE 49 BONDS PRICED AT PAR TO YIELD 49 IN 2003 565 BONDS PRICED AT PAR TO YIELD 565 IN 2013 AND 59 BONDS PRICED AT 9975 TO YIELD 59 IN 2033 MOODY'S AND S&P ARE EXPECTED TO RATE THE ISSUE DOUBLEA THE BONDS ARE INSURED BY THE FEDERAL HOUSING ADMINISTRATION OHIO 981 MILLION OF SERIES 1993 GENERALOBLIGATION INFRASTRUCTUREIMPROVEMENT BONDS PRICED BY A PAINEWEBBER INC GROUP INCLUDED ARE 927 MILLION OF CURRENTINTEREST BONDS PRICED TO YIELD FROM 335 IN 1995 TO 535 IN 2011 THERE ALSO ARE 54 MILLION OF ZEROCOUPON BONDS PRICED TO YIELD 555 IN 2012 AND 2013 MOODY'S AND S&P RATED THE BONDS DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CITICORP'S CITIBANK THE OFFERING SERIES 1650 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1993250 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS CLEANUP CORP JAPAN 70 MILLION OF 1125 EUROBONDS WITH EQUITY WARRANTS DUE DEC 16 1997 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD GUARANTOR BY SANWA BANK BONDS COME WITH ONE WARRANT ATTACHED TO PURCHASE SHARES IN COMPANY AT TERMS TO BE FIXED NOV 29 AT INDICATED PREMIUM 25 MONDAY'S CLOSING SHARE PRICE 1890 YEN EXERCISE PERIOD OF WARRANTS WILL RUN FROM JAN 5 1995 TO DEC 2 1997 FEES 225 INCLUDING 015 FOR LEAD MANAGER CLEANUP CORP JAPAN 50 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 16 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 05 COUPON AT PAR VIA NEW JAPAN SECURITIES EACH NOTE CARRIES 50 WARRANTS EXERCISABLE FROM JAN 5 TO DEC 2 1997 TO PURCHASE COMPANY SHARES FINAL TERMS FIXED NOV 29 FEES 15 CREDIT LOCAL DE FRANCE FRENCH AGENCY 500 MILLION FRENCH FRANCS OF 538 EQUITYLINKED EUROBONDS DUE DEC 22 1997 AT ISSUE PRICE PAR VIA CAISSE DES DEPOTS ET CONSIGNATIONS BONDS LINKED TO THE PERFORMANCE OF FRENCH STOCK MARKET INDEX CAC40 REDEMPTION PARITY 10000 DIVIDED BY AVERAGE LEVEL OF CAC40 NOV 2425 TIMES 12 FEES UNDISCLOSED DOWA MINING LTD JAPAN 130 MILLION OF 1125 EUROBONDS WITH EQUITY WARRANTS ATTACHED AT ISSUE PRICE PAR DUE DEC 16 1997 VIA YAMAICHI INTERNATIONAL EUROPE LTD TERMS FOR WARRANTS SET NOV 30 GUARANTOR INDUSTRIAL BANK OF JAPAN LTD FEES 225 THERE IS A SPECIAL LEAD MANAGER'S FEE OF 02 DRESDEN GERMAN MUNICIPALITY 200 MILLION MARKS OF 6125 BONDS DUE DEC 16 2003 AT ISSUE PRICE 10165 VIA DRESDNER BANK AG BONDS PRICED TO YIELD 628 AFTER DEDUCTING FULL FEES OF 275 A SPREAD OF 46 BASIS POINTS ABOVE THE COMPARABLE GERMAN BUND EXPORTIMPORT BANK OF JAPAN JAPANESE AGENCY 600 MILLION MARKS OF 5875 EUROBONDS DUE DEC 17 2003 AT ISSUE PRICE 10146 VIA INDUSTRIEBANK VON JAPAN DEUTSCHLAND AG REOFFERED AT 99035 TO YIELD 6006 A SPREAD OF 18 BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR THE GOVERNMENT OF JAPAN FEES 275 KUMAGAI GUMI & CO JAPAN 100 MILLION OF CONVERTIBLE EUROBONDS AT INDICATED COUPON OF 45 TO 5 DUE DEC 8 1998 VIA CREDIT SUISSE FIRST BOSTON LTD TERMS EXPECTED TO BE FIXED AROUND DEC 1 CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT INDICATED PREMIUM OF 20 TO 23 BONDS ARE CONVERTIBLE 60 DAYS AFTER TERMS FIXED UNTIL MATURITY CALLABLE AFTER DECEMBER 1995 AT 103 AT 102 IN 1996 AT 101 IN 1997 AT PAR IN 1998 SUBJECT TO THE SHARE PRICE BEING AT 140 OVER THE CONVERSION PREMIUM FEES 25 MARBLE 3 LTD CAYMAN ISLANDS TWO TRANCHES OF FLOATINGRATE EURONOTES DUE DEC 6 1998 ISSUED AND REOFFERED AT PAR VIA IBJ INTERNATIONAL LTD FIRST TRANCHE FOR 32 MILLION WITH INTEREST PAID SEMIANNUALLY AT 100 BASIS POINTS OVER THE SIXMONTH LONDON INTERBANK OFFERED RATE SECOND TRANCHE FOR TWO BILLION YEN INTEREST PAID QUARTERLY AT 125 OVER THE LIBOR UNTIL MARCH 10 THEN AT 80 BASIS POINTS OVER THREEMONTH LIBOR UNTIL JUNE 6 AND THEREAFTER INTEREST PAID SEMIANNUALLY AT 80 BASIS POINTS OVER SIXMONTH LIBOR THERE IS FIRST AND SECOND SHORT COUPON BOTH TRANCHES CARRY A PUTANDCALL OPTION TERMS UNDISCLOSED FEES ONE MARUBENI CORP JAPAN 10 BILLION YEN OF 22 EUROBONDS DUE MAR 30 1999 AT ISSUE PRICE 100425 VIA FUJI INTERNATIONAL FINANCE PLC REOFFERED AT 10015 TO YIELD 217 FEES 05 THERE IS A SHORT FIRST COUPON NIHON MATAI CO 75 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 16 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 05 COUPON AT PAR VIA DAIWA BANK SWITZERLAND EACH NOTE CARRIES 50 WARRANTS EXERCISABLE FROM JAN 5 TO DEC 2 1997 TO PURCHASE COMPANY SHARES FINAL TERMS SET NOV 25 FEES 15 NORDDEUTSCHE LANDESBANK FINANCE CURACAO NV GERMANY ONE BILLION MARKS OF 6 EUROBONDS DUE JAN 5 2004 AT ISSUE PRICE 101245 VIA LEHMAN BROTHERS BANKHAUS AG REOFFERED AT 9907 TO YIELD 6127 A MARGIN OF 31 BASIS POINTS OVER THE 10YEAR GERMAN BUND GUARANTOR NORDDEUTSCHE LANDESBANK GIROZENTRALE FEES 25 PETACALCO TOPOLOBAMPO TRUST MEXICO 250 MILLION OF SECURED EUROBONDS DUE DEC 15 2003 VIA SALOMON BROTHERS INTERNATIONAL LTD BONDS SECURED BY PAYMENT OBLIGATIONS ON LEASING CONTRACTS ORIGINATED IN MEXICO BY COMMISSION FEDERAL DE ELECTRICIDAD BONDS TO BE PRICED WEDNESDAY TO YIELD A MARGIN OF BETWEEN 230 AND 245 BASIS POINTS OVER COMPARABLE 10YEAR US TREASURY FEES ONE INTEREST PAYABLE SEMIANNUALLY SANTANDER INTERNATIONAL LTD CAYMAN ISLANDS SPANISH PARENT 300 MILLION OF SENIOR UNSECURED UNSURBORDINATED FLOATINGRATE EURONOTES AT ISSUE AND FIXED REOFFER PRICE 9963 DUE DEC 14 1998 VIA SWISS BANK CORP AND BANCO SANTANDER DE NEGOCIOS INTEREST PAYS QUARTERLY AND FLOATS FLAT AT THREEMONTH LIBOR GUARANTOR BANCO SANTANDER SA FEES 015 TOYOTA MOTOR FINANCE NETHERLANDS BV JAPANESE PARENT 300 MILLION OF 45 EUROBONDS DUE DEC 20 1996 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS ISSUED AT 1002525 AND REOFFERED AT 99065 TO YIELD 484 A MARGIN OF 22 BASIS POINTS OVER 4375 US TREASURY OF 1996 KEEPWELL AGREEMENT WITH PARENT TOYOTA MOTOR CORP FEES 1375 VENEZUELA SOVEREIGN 750 MILLION AUSTRIAN SCHILLINGS OF 8 BONDS DUE DEC 7 1995 AT ISSUE PRICE 1008 VIA CREDITANSTALT BANKVEREIN RECOMMENDED REOFFER OF 9995 TO YIELD 803 A SPREAD 245 BASIS POINTS ABOVE TWOYEAR AUSTRIAN GOVERNMENT BOND FEES 135 INCLUDING 0125 FOR LEAD MANAGER 9311230017 931123 INTERNATIONAL HONG KONG INFLATION RATE HONG KONG HONG KONG'S MAIN INFLATION GAUGE THE CONSUMER PRICE INDEX A' MEASURE JUMPED TO A 9 YEARONYEAR RATE IN OCTOBER THE GOVERNMENT SAID DESPITE THE INCREASE FROM 79 RECORDED IN SEPTEMBER THE GOVERNMENT SAID THE LATEST DATA DIDN'T INDICATE A RESURGENCE OF INFLATIONARY PRESSURE THE FASTER INCREASE IN THE CPI A' IN OCTOBER IS LIKELY TO BE TEMPORARY A GOVERNMENT SPOKESMAN SAID IT WAS CAUSED MAINLY DUE TO THE SIGNIFICANTLY HIGHER PRICES OF FRESH VEGETABLES CAUSED BY THE BAD WEATHER DURING LATE SEPTEMBER AND EARLY OCTOBER 9311230016 931123 TRW UNIT RECEIVES CONTRACT REDONDO BEACH CALIF TRW INC SAID ITS TRW SPACE & ELECTRONICS GROUP RECEIVED AN 18MONTH 38MILLION CONTRACT FROM THE AIR FORCE SPACE AND MISSILE SYSTEMS CENTER TO DEVELOP SYSTEM ARCHITECTURE AND DESIGN CONCEPTS FOR FUTURE DEFENSE SATELLITES THE COMPANY SAID ITS STUDY WILL HELP THE US UK AND FRANCE REPLENISH THEIR SUPERHIGHFREQUENCY SATELLITES THE STUDY WILL COMPARE AN ALLUS REPLENISHMENT SYSTEM WITH AN INTERNATIONAL SYSTEM BUILT AND OPERATED BY ALL THREE NATIONS TRW SAID IT'S TEAMING UP WITH MATRA MARCONI ESPACE A JOINT VENTURE OF MATRA SA AND GENERAL ELECTRIC CO BASED IN TOULOUSE FRANCE BRITISH AEROSPACE SPACE SYSTEMS A BRITISH AEROSPACE PLC UNIT IN STEVENAGE UK AND ETA TECHNOLOGIES COLORADO SPRINGS COLO 9311230015 931123 WHO'S NEWS PRESIDIO OIL CO PRESIDIO OIL CO DENVER JOHN W HYLAND JR WAS NAMED A DIRECTOR OF THIS OIL AND NATURALGAS EXPLORATION AND PRODUCTION COMPANY EXPANDING THE BOARD TO 11 MEMBERS MR HYLAND 55 YEARS OLD IS A PARTNER IN THE NEW YORK INVESTMENT FIRM MCFARLAND DEWEY & CO 9311230014 931123 LEISURE & ARTS BOOKSHELF THE MEN OF TAMMANY HALL BY DAVID SHRIBMAN THE FOUNDING FATHERS IN ALL THEIR WISDOM MANAGED TO INVENT THE SENATE AND THE HOUSE THEY CAME UP WITH THE SUPREME COURT AND THE PRESIDENTIAL VETO THEY SET FORTH THE NOTION OF THE STATE OF THE UNION MESSAGE AND EVEN A WORKING DEFINITION OF TREASON THEY DID NOT HOWEVER IMAGINE POLITICAL PARTIES THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION NETWORK ANCHORS OR TAMMANY HALL TAMMANY HALL WAS A UNIQUELY AMERICAN PHENOMENON A MONSTROUS POLITICAL MACHINE THAT MANAGED TO DO GOOD AND EVIL AT RARE TIMES IN ROUGHLY EQUAL PROPORTIONS IT BROUGHT HUNDREDS OF THOUSANDS INTO THE POLITICAL SYSTEM AND MORE THAN THAT INTO AMERICAN SOCIETY IT ALSO PRESIDED OVER ONE OF THE MOST STUNNING SPREES OF CORRUPTION MENDACITY MANIPULATION AND EXTORTION EVER CONCEIVED ON THESE SHORES AND IT DID SO WITH COLORFUL CROOKS AND ROGUES WHOSE LONG GORGES AT THE PUBLIC TROUGH HELPED REDEFINE THIEVERY BUT SOMEHOW THESE CHARACTERS INCLUDING WILLIAM TWEED CALLED BOSS BECAUSE THAT'S WHAT HE WAS AND JOHN KELLY KNOWN AS HONEST JOHN EVEN THOUGH HE WASN'T ARE SOFTENED BY THE YEARS AND SO THE TIGER ADDISONWESLEY 336 PAGES 2595 BY OLIVER E ALLEN IS MORE A SCRAPBOOK OF AMERICANA THAN A DREARY MORAL THESIS THESE AREN'T GOOD GUYS BUT THEY MAKE FOR A GOOD READ WHAT EXACTLY DID TAMMANY DO IT CORNERED THE ICE MARKET IN MANHATTAN IT MOBILIZED THE NEW YORK ALMSHOUSES AND SENT THEIR INMATES TO THE POLLS IT BOUGHT VOTES WITH CASH IT BILKED THE CITY GOVERNMENT IT PROMPTED PEOPLE TO VOTE 28 TIMES IN ONE DAY MAYBE MORE BECAUSE ONE FELLOW WHO DID IT GOT SO DRUNK THAT HE LOST COUNT IT SUBSIDIZED NEWSPAPER REPORTERS IT RAN POOLROOMS AND BROTHELS IT PROVIDED PAYOFFS TO THE POLICE AND IT ALL BUT OWNED JUDGES ALL THAT PLUS ONE MORE THING IT DEVELOPED THE CONCEPT OF HONEST GRAFT A CULTURAL ANTHROPOLOGIST WOULD SAY THAT TAMMANY WAS A PARALLEL GOVERNMENT AT TIMES STRONGER THAN THE REAL GOVERNMENT AT TIMES INDISTINGUISHABLE FROM IT MR ALLEN SAYS THAT IT WAS THE LONGEST RUNNING POLITICAL SHOW IN AMERICA AND SHOWY AND GAUDY IT WAS TWEED HUNG OUT IN A CLUBHOUSE WITH BEDS THAT HAD BLUE SILK SHEETS AND HE ENTERTAINED ON A YACHT CALLED INEVITABLY THE WILLIAM M TWEED OUTFITTED WITH ORIENTAL RUGS A LIBRARY A CREW OF A DOZEN AND WHEN THERE WAS ENTERTAINING TO BE DONE AN ORCHESTRA WHEN TWEED ENTERED PRISON HE WAS ASKED HIS OCCUPATION HIS ANSWER STATESMAN TAMMANY BEGAN INNOCENTLY ENOUGH AS A BENEVOLENT ASSOCIATION WHICH OF COURSE IT REMAINED IN GROTESQUE FORM IN ITS EARLY DAYS IT WAS MOSTLY A DRESSUP SOCIETY WITH A LOT OF GUYS HOLDING RIDICULOUS TITLES OF AMERICAN INDIAN DERIVATION MEMBERS WERE BRAVES RULERS WERE SACHEMS THE MASTER OF CEREMONIES WAS A SAGAMORE THE ESTEEMED MEMBERSHIP DID LITTLE MORE THAN HOLD PARADES AND GLASSES OF WHISKEY BUT TAMMANY DRIFTED INTO POLITICS AN EARLY LEADER WILLIAM MOONEY STOLE 4000 AND SOON THE SOCIETY FOUND ITS REAL CALLING OVER THE YEARS IT WENT FROM BEING A DEN OF NATIVISTS TO A HARBOR FOR IMMIGRANTS PARTICULARLY THE IRISH ALONG THE WAY IT PERFECTED ITS OWN BRAND OF POLITICAL CORRUPTION AS EARLY AS 1828 TAMMANY WAS USING UNDERAGE BOYS TO VOTE FOR ANDREW JACKSON AND WAS ESCORTING IMMIGRANTS TO THE POLLS TAMMANY WASN'T ALONE FOR CORRUPTION WAS A GROWTH INDUSTRY IN AMERICA HENRY CLAY'S WHIGS WEREN'T ABOVE PAYING 5 FOR A VOTE AND DIDN'T SHRINK AT IMPORTING VOTERS FROM PHILADELPHIA BUT TAMMANY RAISED ALL THIS TO AN ART FORM ONE BOSS FERNANDO WOOD GAVE HUGE LEGIONS OF THE POLICE A FEW HOURS OFF ON ELECTION DAY WHICH MEANT THEY COULDN'T WATCH FOR IRREGULARITIES AT THE POLLS REFORM MOVEMENTS CAME AND WENT BUT TAMMANY REMAINED RESILIENT AND PROUD GEORGE WASHINGTON PLUNKITT POET LAUREATE OF POLITICAL CORRUPTION HAD IT RIGHT REFORMERS ARE MORNIN' GLORIES LOOK LOVELY IN THE MORNIN' AND WITHER UP IN A SHORT TIME WHILE THE REGULAR MACHINES GO ON FLOURISHIN' FOREVER LIKE FINE OLD OAKS THE OLD OAKS TOOK SOME HITS TO BE SURE THE NEW YORK TIMES TOOK ON TAMMANY AND SO DID SAMUEL TILDEN SO TOO DID THOMAS NAST WHOSE CARTOONS TWEED FOUND ESPECIALLY THREATENING MY CONSTITUENTS DON'T KNOW HOW TO READ TWEED SAID BUT THEY CAN'T HELP SEEING THEM DAMNED PICTURES EVENTUALLY THIS SIDESHOW HAD TO END AND IT DID ABOUT THREE DECADES AGO IT WAS DEMOGRAPHICS MORE THAN ANYTHING THAT ENDED IT MANHATTAN THE SEAT OF TAMMANY POWER BEGAN TO LOSE POPULATION RELATIVE TO THE OTHER BOROUGHS OF NEW YORK AND AS A RESULT THE TIGER AS TAMMANY WAS KNOWN LOST ITS ROAR THE HUGE WAVES OF IMMIGRANTS DRIED UP TOO TAMMANY WAS FORCED TO FIND SUPPORT IN ORGANIZED CRIME AND THAT ALLIANCE DISPLAYED TAMMANY'S WEAKNESS RATHER THAN SHORED UP ITS STRENGTH MR ALLEN'S ACCOUNT GIVES US THE COLOR AND THE SPECTACLE AND THOUGH HE TOUCHES ON THE IMPORTANCE OF POLITICAL MACHINES IN URBAN AMERICA HE NEVER FULLY DEVELOPS THE THEME BUT HERE NONETHELESS IS A READABLE GLIMPSE OF POWER AND THE PAST AND IN A WAY SOME REASSURANCE THAT OUR OWN POLITICS MAY BE MORE NEARLY SANITARY THAN WE OFTENTIMES THINK MR SHRIBMAN IS ASSISTANT MANAGING EDITOR AND WASHINGTON BUREAU CHIEF OF THE BOSTON GLOBE 9311230013 931123 WHO'S NEWS POLAROID EXECUTIVE IS NAMED TO HEAD SONY ELECTRONICS BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER A NINEMONTH SEARCH SONY CORP OF AMERICA TAPPED A POLAROID CORP GROUP VICE PRESIDENT CARL J YANKOWSKI AS PRESIDENT AND CHIEF OPERATING OFFICER OF SONY ELECTRONICS INC ITS 62 BILLION US CONSUMER AND PROFESSIONAL ELECTRONICS BUSINESS MR YANKOWSKI 45 YEARS OLD MOST RECENTLY RAN THE PHOTOGRAPHY CONCERN'S HONG KONGBASED ASIA/PACIFIC REGION AT SONY HE FILLS THE POST VACATED LAST FEBRUARY BY RONALD SOMMER WHO WAS TRANSFERRED TO EUROPE TO RUN SONY'S TROUBLED HARDWARE OPERATIONS THERE AFTER MR SOMMER'S DEPARTURE TOKYOBASED PARENT SONY CORP REORGANIZED THE CONSUMER ELECTRONICS BUSINESS AND CONSOLIDATED IT ALONG WITH ITS ENTERTAINMENT OPERATIONS UNDER THE SONY CORP OF AMERICA BANNER THOSE OPERATIONS REPORT TO MICHAEL P SCHULHOF CHAIRMAN AND CHIEF EXECUTIVE OF SONY CORP OF AMERICA MR YANKOWSKI WHO WILL ALSO REPORT TO MR SCHULHOF JOINED POLAROID IN 1988 AS A CORPORATE VICE PRESIDENT FOR US CONSUMER AND INDUSTRIAL MARKETING AND LATER OVERSAW THE BUSINESS IMAGING GROUP HE HELD MARKETING AND MANAGEMENT POSTS AT A NUMBER OF CONSUMER PRODUCTS CONCERNS INCLUDING PROCTER & GAMBLE INC PEPSICO AND GENERAL ELECTRIC CO MR SCHULHOF CITED MR YANKOWSKI'S STRONG COMBINATION OF TECHNICAL AND BRAND NAME MARKETING EXPERTISE AND SAID HIS MANDATE IS TO HELP SONY ELECTRONICS CONTINUE ITS GROWTH BOTH THROUGH TRADITIONAL AVENUES AND NEW CROSSMARKETING INITIATIVES WITH SONY PICTURES SONY MUSIC AND SONY ELECTRONIC PUBLISHING THOUGH THE VARIOUS SONY UNITS HAVE BEEN WORKING ON SUCH INITIATIVES SYNERGIES SO FAR HAVE BEEN RATHER ELUSIVE A POLAROID SPOKESWOMAN SAID WE'RE SORRY TO SEE HIM GO POLAROID SAID MR YANKOWSKI WAS ONE OF THREE GROUP VICE PRESIDENTS AND THE ONLY ONE OF ITS UPPER ECHELON VICE PRESIDENTS WHO WAS UNDER 50 YEARS OLD THE SPOKESWOMAN DECLINED TO SAY WHETHER HE WAS REGARDED AS LIKELY TO CONTEND FOR THE COMPANY'S TOP JOB DESPITE A WORLDWIDE SLUMP IN THE CONSUMER ELECTRONICS MARKET SONY REPORTED THAT US CONSUMER ELECTRONICS SALES OF 62 BILLION FOR THE FIRST HALF OF ITS CURRENT FISCAL YEAR ENDED OCT 1 WERE UP 14 OVER YEAR EARLIER LEVELS 9311230012 931123 CATERPILLAR GETS 2 CIS JOBS PEORIA ILL CATERPILLAR INC SAID IT RECEIVED TWO CONTRACTS VALUED AT 46 MILLION IT SAID A RUSSIAN PETROLEUMTRANSPORT COMPANY DOUBLED ITS ORDER FOR TRACTORS AND PIPE LAYERS AND A GOLD MINE IN ANOTHER COMMONWEALTH OF INDEPENDENT STATES COUNTRY WILL BUY 20 OFFHIGHWAY TRUCKS THE CONTRACTS BRING THE NUMBER OF MAJOR CATERPILLAR SALES TO THE CIS IN THE LAST 12 MONTHS TO FOUR VALUED AT 200 MILLION THE COMPANY SAID 9311230011 931123 FOODMAKER TO START 450000 PROGRAM TO SETTLE PART OF SUIT ON TAINTED MEAT FOODMAKER INC PLANS TO CREATE A 450000 MEDICAL MONITORING PROGRAM AND 10YEAR TRUST FUND FOR VICTIMS OF LAST JANUARY'S E COLI BACTERIALINFECTION OUTBREAK AT ITS JACK IN THE BOX RESTAURANTS THE ARRANGEMENT SETTLES PART OF A CLASSACTION LAWSUIT BROUGHT AGAINST FOODMAKER ON BEHALF OF ABOUT 470 PEOPLE MORE THAN 250 OF THOSE CONTRACTED THE INFECTION WHICH WAS TRACED TO CONTAMINATED HAMBURGER MEAT THE REMAINDER ARE PARENTS AND SPOUSES OF THOSE WHO BECAME ILL THE MEDICAL MONITORING PROGRAM WILL PAY FOR PERIODIC TESTS FOR ALL E COLI VICTIMS TO DETECT POSSIBLE FUTURE COMPLICATIONS FROM THE INFECTION SUCH AS KIDNEY AND BOWEL PROBLEMS THE TRUST FUND WILL COVER RELATED HEALTH PROBLEMS NOT COVERED BY INSURANCE EXCLUDING TREATMENT FOR A KIDNEY CONDITION CALLED HEMOLYTIC UREMIC SYNDROME THAT AFFECTED SOME E COLI VICTIMS ADDITIONAL CASH COMPENSATION FOR ALL PLAINTIFFS IS STILL UNDER NEGOTIATION TO DATE FOODMAKER HAS AWARDED FIVE FAMILIES DAMAGES AVERAGING 25000 EACH CHRISTOPHER C PENCE ONE OF THE PLAINTIFFS' SEATTLE ATTORNEYS SAID THE FAMILIES REPRESENT 10 INDIVIDUALS AMONG THE TOTAL NUMBER IN THE CLAIMS MR PENCE SAID THAT THE AMOUNT OF THE MONITORING AND TRUST FUND PROGRAM TOOK INTO ACCOUNT VERY LIBERAL ASSUMPTIONS BY E COLI MEDICAL EXPERTS AND THE PLAINTIFFS' LAWYERS AND THAT HE IS CONFIDENT 450000 WOULD BE ADEQUATE THE SUM WAS DESIGNED TO ACCOMMODATE ADDITIONAL CLAIMANTS WHO ARE EXPECTED TO JOIN THE SUIT HE SAID BUT DECLINED TO ESTIMATE HOW MANY A SPOKESWOMAN FOR SAN DIEGOBASED FOODMAKER SAID THAT ALL PAYMENTS TO PLAINTIFFS INCLUDING THE 450000 MONITORING AND TRUSTFUND PROGRAM WOULD BE PAID THROUGH THE COMPANY'S 100 MILLION INSURANCE POLICY AND WON'T AFFECT EARNINGS THE LAWSUIT FILED IN SEATTLE'S KING COUNTY SUPERIOR COURT LAST FEBRUARY ALLEGES THAT FOODMAKER WAS NEGLIGENT IN PREPARING DELIVERING SELLING FOR PROFIT AND SERVING FOOD WHICH WAS UNFIT FOR HUMAN CONSUMPTION AND SEEKS UNSPECIFIED DAMAGES THE SUIT WAS CERTIFIED AS A CLASS ACTION COMPLAINT IN JUNE AND REMAINS OPEN TO CLAIMANTS NATIONWIDE WHO CHOOSE TO PARTICIPATE MR PENCE SAID THE WIDELY PUBLICIZED FOODPOISONING OUTBREAK AT JACK IN THE BOX LEFT TWO PEOPLE DEAD AND 450 ILL IN NEVADA AND THE PACIFIC NORTHWEST EARLIER THIS YEAR FOODMAKER SHARES CLOSED YESTERDAY AT 9625 OFF 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9311230009 931123 BUSINESS BRIEF ENTERRA CORP ACQUISITIONS ARE COMPLETED FOR TOTAL OF 106 MILLION ENTERRA CORP SAID IT COMPLETED THE ACQUISITION OF THREE PRIVATE OILFIELD PRODUCTS COMPANIES FOR A TOTAL OF 106 MILLION IN STOCK AND CASH THE HOUSTON OIL AND NATURALGAS DRILLING SERVICES AND PRODUCTS COMPANY SAID THE THREE ACQUISITIONS ARE POSITIVE ACTION TOOL CO BASED IN DALLAS POSITIVE ACTION TOOL WESTERN LTD OF CALGARY ALBERTA AND GUIDECO CORP OF HOUSTON ENTERRA SAID THE COMBINED PURCHASE PRICE INCLUDES 85 MILLION IN CASH AND 95000 COMMON SHARES THE COMPANY CURRENTLY HAS 162 MILLION SHARES OUTSTANDING ENTERRA SAID THE COMBINED REVENUE OF THE THREE ACQUISITIONS IS CURRENTLY ABOUT 10 MILLION A YEAR IN 1992 ENTERRA HAD NET INCOME OF 147 MILLION OR 92 CENTS A SHARE ON REVENUE OF 150 MILLION ENTERRA ALSO SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF TLC INC A PRIVATELY HELD OILFIELD SERVICES COMPANY IN BAY CITY TEXAS 9311230008 931123 ECONOMY LINKING OF UNIVERSAL HEALTH COVERAGE TO COST CONTAINMENT ENDURES SCRUTINY BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT IS THE GREAT CHICKENANDEGG QUESTION OF THE HEALTHCARE REFORM DEBATE WHICH COMES FIRST UNIVERSAL COVERAGE OR COST CONTAINMENT PRESIDENT CLINTON DURING HIS MAJOR HEALTHCARE ADDRESS TO CONGRESS IN SEPTEMBER MADE HIS OWN VIEW PERFECTLY CLEAR UNLESS EVERY AMERICAN HAS ADEQUATE MEDICAL BENEFITS HE DECLARED WE WILL NEVER BE ABLE TO FULLY PUT THE BRAKES ON HEALTHCARE INFLATION THE REASON WHEN PEOPLE DON'T HAVE ANY HEALTH INSURANCE THE PRESIDENT SAID THEY STILL GET HEALTH CARE BUT THEY GET IT WHEN IT'S TOO LATE WHEN IT'S TOO EXPENSIVE OFTEN FROM THE MOST EXPENSIVE PLACE OF ALL THE EMERGENCY ROOM SO THEY COST US MORE NOT EVERYONE AGREES HOWEVER GERARD ANDERSON DIRECTOR OF THE CENTER FOR HOSPITAL FINANCE & MANAGEMENT AT JOHNS HOPKINS UNIVERSITY IN BALTIMORE SAYS THAT BECAUSE THE UNINSURED WOULD LIKELY USE MORE MEDICAL SERVICES IF THEY SUDDENLY WERE GIVEN COVERAGE OVERALL HEALTHCARE COSTS WOULD GO UP NOT DOWN IN FACT THE CLINTON ADMINISTRATION'S OWN PRELIMINARY PROJECTIONS SHOW THAT NATIONAL HEALTH SPENDING WOULD RISE FASTER THAN IT OTHERWISE WOULD DURING THE FIRST FOUR YEARS OF THE NEW PLAN AS THE NATION'S 37 MILLION UNINSURED WERE ABSORBED INTO THE SYSTEM THE CLINTON PLAN AIMS TO MAKE COVERAGE UNIVERSAL BY JAN 1 1998 MEANWHILE BRINGING COSTS UNDER CONTROL IS VIEWED BY SOME AS A SEPARATE EQUATION UNIVERSAL COVERAGE CAN MAKE COST CONTAINMENT EASIER THIS LINE OF THINKING GOES BUT IT'S NOT A NECESSITY BY STREAMLINING THE MEDICAL DELIVERY SYSTEM FOSTERING COMPETITION IN THE HEALTHCARE MARKETPLACE OR SETTING THE RATES HOSPITALS AND DOCTORS CAN CHARGE YOU CAN GET COST CONTAINMENT WITHOUT UNIVERSAL COVERAGE SAYS MR ANDERSON WHO SERVED AS A HEALTH ADVISER DURING THE CARTER ADMINISTRATION THAT PROSPECT HAS LED SOME TO FAVOR A TWOSTEP STRATEGY DIFFERENT FROM THE PRESIDENT'S FIRST REIN IN COSTS THEN EXTEND COVERAGE TO ALL IT IS LESS IDEAL THAN CLINTON'S APPROACH BUT IT IS MORE PRAGMATIC SAYS LOUIS SULLIVAN WHO SERVED AS SECRETARY OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER PRESIDENT BUSH POLITICALLY HOWEVER IT MAY BE IMPOSSIBLE TO SEPARATE THE TWO GOALS SIXTEEN YEARS AGO PRESIDENT CARTER TRIED TO CONTROL HOSPITAL COSTS BEFORE EMBARKING ON A NATIONAL HEALTH INSURANCE PROGRAM TROUBLE IS CONGRESS NEVER MANAGED TO SWALLOW THE BITTER MEDICINE OF COST CONTAINMENT MR ANDERSON RECALLS SO WE NEVER EVEN GOT TO STEP TWO UNIVERSAL COVERAGE WHATEVER THE RIGHT ANSWER THE ISSUE HAS TAKEN ON ENORMOUS IMPORTANCE A COUPLE OF WEEKS AGO HILLARY RODHAM CLINTON MADE CLEAR THAT THE ADMINISTRATION WON'T BACK OFF FROM ITS COMMITMENT TO PROVIDE UNIVERSAL COVERAGE WITH A COMPREHENSIVE SET OF HEALTH BENEFITS THE FIRST LADY EVEN LAUDED ALTERNATIVE PROPOSALS THAT SEEK UNIVERSAL COVERAGE INCLUDING A PLAN BY REPUBLICAN SEN JOHN CHAFEE OF RHODE ISLAND AND SHE ATTACKED THOSE PLANS THAT AREN'T DESIGNED TO COVER EVERYBODY INCLUDING ONE BY DEMOCRATIC REP JIM COOPER OF TENNESSEE IN MAKING HIS CASE FOR UNIVERSAL COVERAGE PRESIDENT CLINTON HAS PAINTED IT FIRST AND FOREMOST AS A MATTER OF MORALITY THINK OF THE FACE OF THE WOMAN WHO'S BEEN TOLD NOT ONLY THAT HER CONDITION IS MALIGNANT BUT NOT COVERED BY HER INSURANCE THE PRESIDENT IMPLORED LAWMAKERS IN HIS SEPTEMBER SPEECH BUT THERE IS ALSO AN ECONOMIC RATIONALE ACCORDING TO THE ADMINISTRATION FOR UNIVERSAL COVERAGE IF HEALTH COVERAGE WERE PROVIDED TO ALL PEOPLE WOULD NO LONGER BE AFRAID TO LEAVE THEIR CURRENT JOBS BECAUSE OF THE POSSIBILITY OF LOSING THEIR INSURANCE A PARALYSIS KNOWN AS JOB LOCK MOREOVER EVERY TIME THE UNINSURED OR THOSE WITH INSUFFICIENT COVERAGE SHOW UP AT THE HOSPITAL THEIR COST OF CARE MUST BE BORNE BY THOSE WITH GOOD BENEFITS A PHENOMENON CALLED COSTSHIFTING SOME STUDIES SHOW THAT COSTSHIFTING IS LEADING TO INCREASES IN PREMIUMS OF MORE THAN 10 FOR THOSE WHO ARE INSURED WHILE ALSO DRIVING UP ADMINISTRATIVE EXPENSES THROUGHOUT THE SYSTEM DESPITE SUCH ARGUMENTS THE NOTION OF SUPPLYING EVERYONE WITH HEALTH INSURANCE IS UNTHINKABLE AT ONE END OF THE POLITICAL SPECTRUM TO THOSE ON THE FAR RIGHT UNIVERSAL COVERAGE IS JUST A EUPHEMISM FOR THE WELFARIZATION OF HEALTH CARE REP DICK ARMEY R TEXAS ASSERTED OBVIOUSLY WE WOULD HOPE EVERYBODY WOULD ENJOY HEALTH CARE BUT HEALTH CARE IS A COMMODITY JUST LIKE BREAD AND JUST LIKE HOUSING AND EVERYTHING ELSE IN THE MIDDLE OF THE SPECTRUM ARE MODERATE CONSERVATIVES LIKE REP COOPER AND REPUBLICAN SEN DAVE DURENBERGER OF MINNESOTA WHO WANT TO INCREASE THE NUMBER OF AMERICANS WHO HAVE HEALTH INSURANCE BUT WOULD WAIT UNTIL COST SAVINGS ARE EVIDENT BEFORE GUARANTEEING UNIVERSAL COVERAGE WE'RE FOR UNIVERSAL COVERAGE BUT NOT UNTIL YOU CAN SATISFY THE AMERICAN PEOPLE THAT IT CAN BE PAID FOR SEN DURENBERGER SAYS WE WANT TO GO SLOW SAYS REP COOPER WHOSE PURE MANAGED COMPETITION PLAN WOULD TRY TO HOLD DOWN HEALTH COSTS BY RELYING ON MARKET FORCES AND BY CAPPING THE AMOUNT OF HEALTH BENEFITS EMPLOYERS CAN DEDUCT FOR TAX PURPOSES BY NOT GOING FOR UNIVERSAL COVERAGE RIGHT OFF THE BAT MR COOPER BELIEVES IT IS POSSIBLE TO SIDESTEP ONE OF THE MOST CONTROVERSIAL ELEMENTS OF THE CLINTON PLAN THE REQUIREMENT THAT ALL EMPLOYERS HELP PAY FOR THEIR WORKERS' HEALTH COVERAGE THE EMPLOYER MANDATE THE CONGRESSMAN SAYS IS A CLUMSY AND EXPENSIVE WAY OF ACHIEVING UNIVERSAL COVERAGE BESIDES MR COOPER CONTENDS THAT BY KNOCKING DOWN THE BARRIERS THAT BLOCK POOR AND SICK PEOPLE FROM OBTAINING HEALTH INSURANCE HIS PLAN WOULD COME CLOSE TO UNIVERSAL COVERAGE IN THE END HE SAYS AS FEW AS SIX MILLION AMERICANS WOULD BE LEFT UNINSURED CRITICS DON'T BELIEVE THAT HOWEVER MRS CLINTON FOR ONE POINTS TO A CONGRESSIONAL BUDGET OFFICE STUDY WHICH CONCLUDED THAT AN EARLIER VERSION OF THE COOPER PLAN WOULD LEAVE 25 MILLION UNINSURED THE CBO HASN'T ASSESSED THE LATEST VERSION OF THE COOPER PROPOSAL THE GOSLOW APPROACH HAS OTHER POTENTIAL PITFALLS AS WELL CURRENTLY BECAUSE COSTS CAN BE SHIFTED TO THOSE WITH COVERAGE THE UNINSURED RECEIVE THE TREATMENT THEY NEED WHEN THEY SHOW UP AT THE EMERGENCY ROOM BUT IF COST CONTROLS WERE IN PLACE THE UNINSURED MAY FIND IT HARDER TO FIND CARE A BARELY CIVILIZED SYSTEM FOR THE UNINSURED WARNS BROOKINGS INSTITUTION ECONOMIST HENRY AARON COULD TURN INTO ONE THAT IS DOWNRIGHT FERAL 9311230007 931123 MARKETING & MEDIA DEAN WITTER MASTERCARD BURY HATCHET FOR JOINT CREDIT CARD WITH NATIONSBANK BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL DEAN WITTER DISCOVER & CO AND MASTERCARD INTERNATIONAL SET ASIDE THEIR LEGAL SKIRMISH AND TEAMED UP WITH NATIONSBANK CORP TO JOINTLY OFFER A CREDIT CARD THE FIRST TIME DEAN WITTER HAS BEEN ABLE TO ISSUE A CARD THROUGH A CREDITCARD ASSOCIATION DEAN WITTER WHOSE DISCOVER CARD HAS ABOUT 38 MILLION CARDHOLDERS HAS BEEN IN PROTRACTED LEGAL BATTLES WITH BOTH MASTERCARD AND VISA USA BECAUSE IT WANTED TO ISSUE CARDS THROUGH THOSE ASSOCIATIONS VISA AND MASTERCARD HAVE OPPOSED ANY ARRANGEMENT WITH DEAN WITTER IN PART BECAUSE THEY CONSIDER THE DISCOVER CARD A DIRECT COMPETITOR NOW HOWEVER DEAN WITTER AND MASTERCARD HAVE SETTLED A LAWSUIT OVER THE ISSUE AND DECIDED TO OFFER A SOCALLED COBRANDED CARD WITH NATIONSBANK A SEPARATE SUIT WITH VISA REMAINS OUTSTANDING THE ACCORD WILL ALLOW DEAN WITTER A FINANCIAL SERVICES COMPANY RECENTLY SPUN OFF BY SEARS ROEBUCK & CO TO USE ITS UNDERUTILIZED CREDITCARD OPERATIONS WHICH INCLUDE TWO BANKS DEAN WITTER WILL PAY MOST OF THE MARKETING COSTS OF THE NEW CARD CALLED THE PRIME OPTION CARD AND BE INVOLVED IN THE COLLECTIONS FOR MASTERCARD THE SETTLEMENT WILL GIVE THE ASSOCIATION ANOTHER ISSUER OF CREDIT CARDS IT'S A VERY CLEVER EXECUTION OF A PLAN THAT WILL BENEFIT THE ASSOCIATION DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT A CALIFORNIABASED CREDITCARD NEWSLETTER DESPITE A GLUT OF CREDIT CARDS AND HEATED COMPETITION BANKS AND NONFINANCIAL COMPANIES HAVE CONTINUED TO OFFER NEW CREDITCARD PRODUCTS TO CONSUMERS AND BUSINESSES MANY INDUSTRIAL COMPANIES SUCH AS GENERAL MOTORS CORP HAVE TEAMED UP WITH CREDITCARD ASSOCIATIONS PREDOMINANTLY MASTERCARD TO OFFER COBRANDED CARDS NOW ONE OF THE FASTEST GROWING SEGMENTS OF THE CREDIT CARD MARKET NATIONSBANK WILL OWN THE CREDITCARD BALANCES ON THE NEW CARD WHICH WILL BE LAUNCHED IN EARLY 1994 AND WILL TRY TO BOOST ITS CREDITCARD OPERATIONS TO THE TOP TEN IN THE COUNTRY IT IS THE SECOND JOINTVENTURE BETWEEN THE BANK AND DEAN WITTER LAST YEAR THE TWO COMPANIES SET UP A SUBSIDIARY THAT WILL SELL FINANCIAL PRODUCTS THROUGH NATIONSBANK BRANCHES SEARS LAUNCHED THE DISCOVER CARD IN 1985 AFTER NEITHER MASTERCARD NOR VISA WOULD ALLOW SEARS MEMBERSHIP IN PART BECAUSE SEARS WOULD NOT RECIPROCATE AND ACCEPT VISA AND MASTERCARD IN 1990 DEAN WITTER THEN A UNIT OF SEARS BOUGHT A TINY THRIFT IN UTAH AND ATTEMPTED TO JOIN VISA VISA DENIED DEAN WITTER'S MEMBERSHIP PROMPTING A LAWSUIT DEAN WITTER WON THE SUIT IN SALT LAKE CITY LATE LAST YEAR AND THE CASE IS BEING APPEALED BY VISA AT THE 10TH CIRCUIT COURT OF APPEALS IN DENVER THE AGREEMENT WITH MASTERCARD NOW LEAVES VISA AS THE LONE STANDOUT ON THE ISSUE IT THROWS THE LEGAL GAUNTLET OVER TO VISA SAID JAMES DALY EDITOR OF CREDIT CARD NEWS SPECIFIC BANKS WILL DO ANYTHING THEY CAN THAT WILL BRING THEM PROFITS WHETHER OR NOT THERE'S ANY TYPE OF MUDDYING THE LINES BETWEEN BANKS AND OUTSIDE COMPETITORS A VISA SPOKESMAN SAID THE ASSOCIATION IS PROCEEDING WITH THE LAWSUIT NOTHING HAS CHANGED FROM OUR PERSPECTIVE HE ADDED THE CARD PRODUCT ITSELF IS BEING PITCHED TO INDIVIDUALS WHO CARRY CREDITCARD BALANCES BUT IS BY NO MEANS THE BEST OFFER IN THE MARKET THE CARD HAS NO ANNUAL FEE AND CARRIES A 25DAY GRACE PERIOD ON PURCHASES IF CONSUMERS DON'T PAY OFF THEIR BALANCES THEY PAY 99 FOR THE FIRST TWO MONTHS AND THE PRIME PLUS 99 THEREAFTER WHICH WOULD CURRENTLY BE 159 MANY CARDS NOW HAVE INTEREST RATES UNDER 15 IT'S NOTHING SPECIAL SAID MR ROBERTSON 9311230006 931123 OILERS OWNER MAYOR OF HOUSTON CONSIDER NEW FOOTBALL STADIUM HOUSTON MAYOR BOB LANIER AND THE OWNER OF THE HOUSTON OILERS SAID EXPLORATORY TALKS HAVE BEEN HELD ABOUT A POSSIBLE NEW FOOTBALL STADIUM DOWNTOWN THE DISCUSSIONS ARE AIMED AT A NEW DOMED STADIUM BIGGER THAN THE CITY'S ASTRODOME BUILT IN 1965 WHICH SEATS 62000 THE MOVE PARTLY WOULD BE TO GET THE NATIONAL FOOTBALL LEAGUE TO MAKE HOUSTON THE PERIODIC HOST OF THE ANNUAL SUPER BOWL LEAGUE OFFICIALS PREFER STADIUMS WITH A MINIMUM CAPACITY OF 70000 HOUSTON'S BID TO HOST THE 1995 SUPER BOWL WAS TURNED DOWN TWO YEARS AGO KS BUD ADAMS OWNER AND PRESIDENT OF THE OILERS WHO ALSO IS PRESIDENT OF ADAMS RESOURCES & ENERGY INC AN OIL AND NATURALGAS EXPLORATION AND PRODUCTION COMPANY IN A PREPARED STATEMENT CONFIRMED THE PRELIMINARY FEASIBILITY TALKS BUT SAID DISCUSSIONS ARE EXPLORATORY IN NATURE AND NO DECISION ON PROCEEDING WITH PLANS FOR A NEW STADIUM HAS BEEN REACHED DAVE WALDEN CHIEF OF STAFF FOR MR LANIER SAID THERE IS PLENTY OF ROOM FOR THE STADIUM DOWNTOWN AND AT LEAST TWO POSSIBLE LOCATIONS HAVE BEEN MENTIONED HE SAID MR LANIER SUPPORTS A NEW STADIUM IF FINANCING CAN BE WORKED OUT HE'S INTERESTED IF THE NUMBERS ARE THERE WHAT IT TAKES TO GET THEM THERE WE DON'T KNOW MR WALDEN ADDED THAT THE MAYOR HAS DISCUSSED THE POSSIBILITY OF A NEW DOME WITH THE TEAM OWNER RECENTLY THERE'S NO PLANNED NEXT MOVE BUT THE WAY THINGS ARE AROUND THERE THAT COULD CHANGE IN 24 HOURS MR ADAMS SAID THE OILERS WOULD FULFILL ITS LEASE COMMITMENT TO PLAY IN THE ASTRODOME THROUGH 1997 PEOPLE CLOSE TO THE SITUATION ESTIMATED THAT A NEW DOME WOULD COST 200 MILLION AND SAID IT IS UNCERTAIN WHETHER FINANCING WOULD BE PRIVATE OR INVOLVE PUBLIC FUNDING 9311230005 931123 CREDIT MARKETS BOND PRICES FALL ON INFLATION JITTERS DESPITE DEMAND AT TWOYEAR NOTE SALE BY THOMAS D LAURICELLA AND CANDACE CUMBERBATCH SPECIAL TO THE WALL STREET JOURNAL NEW YORK WORRIES ABOUT THE STRENGTH OF THE ECONOMY FUELED YET ANOTHER SELLOFF IN THE BOND MARKET YESTERDAY FOR THE PAST MONTH INVESTORS HAVE BECOME INCREASINGLY CONVINCED THAT RECENT SIGNS OF ECONOMIC STRENGTH ARE NOT BLIPS ON THE SCREEN BUT EVIDENCE OF A SIGNIFICANT SHIFT IN THE ECONOMY BOND INVESTORS OFTEN REACT NEGATIVELY TO NEWS OF RAPID ECONOMIC GROWTH BECAUSE THEY FEAR THAT SUCH GROWTH WILL LEAD TO MORE INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN EVEN THOUGH THERE WAS LITTLE IN THE WAY OF NEW IMPORTANT ECONOMIC DATA TO HURT THE BOND MARKET YESTERDAY INVESTORS BEHAVED AS IF THERE HAD BEEN THE 30YEAR TREASURY BOND DROPPED 3/4 POINT OR 750 FOR A BOND WITH A 1000 FACE VALUE TO 98 3/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 638 FROM 633 ON FRIDAY TO ITS HIGHEST LEVEL SINCE MIDAUGUST THE PRICES OF OTHER TREASURY MATURITIES DROPPED AS WELL WITH THE 10YEAR NOTE PLUNGING NEARLY 1/2 POINT TO 98 28/32 TO YIELD 589 UP FROM 582 ON FRIDAY REASONABLE DEMAND AT THE GOVERNMENT'S AUCTION OF NEW TWOYEAR NOTES FAILED TO PROVIDE ANY RELIEF FOR THE BATTERED BOND MARKET TRADERS SAID YESTERDAY'S DECLINES REPRESENTED A CONTINUATION OF THE BEARISH SENTIMENT THAT HAS SWIRLED THROUGH THE BOND MARKET SINCE MIDOCTOBER SINCE THAT TIME YIELDS HAVE RISEN SUBSTANTIALLY FOR MANY TREASURY MATURITIES THE YIELD ON THE 30YEAR BOND FOR EXAMPLE NOW STANDS NEARLY 06 PERCENTAGE POINT HIGHER THAN IT DID JUST FIVE WEEKS AGO THE PRICE OF THE BOND HAS PLUNGED NEARLY 8 3/8 POINTS OR NEARLY 8375 FOR A BOND WITH A 1000 FACE VALUE THE YIELD ON THE 10YEAR NOTE MEANWHILE HAS JUMPED MORE THAN 07 PERCENTAGE POINT AT THE SHORT END THE TWOYEAR NOTE IS YIELDING 045 PERCENTAGE POINT MORE THE RISE IN YIELDS HAS COME IN REPONSE TO A GROWING LIST OF REPORTS SHOWING THAT THE ECONOMY HAS PICKED UP STEAM AT THE SAME TIME MANY INVESTORS WHO HAD A PROFITABLE YEAR HAVE TURNED DEFENSIVE AND STEPPED OUT OF THE MARKET IN ORDER TO CASH IN OR PROTECT THE PROFITS THEY'VE EARNED SO FAR THIS YEAR PEOPLE JUST DON'T WANT TO PUT THEIR TOE IN THE WATER AND IF THEY DO THEY PULL IT OUT REAL FAST SAID MATTHEW ALEXY A GOVERNMENTBOND MARKET STRATEGIST AT CS FIRST BOSTON INC THE ONLY MODEST POSITIVE FOR THE MARKET WAS WHAT TRADERS TERMED REASONABLE DEMAND FOR THE TREASURY'S AUCTION OF 17 BILLION IN NEW TWOYEAR NOTES THE TREASURY AWARDED THE NOTES AT A YIELD OF 427 IN LINE WITH MARKET EXPECTATIONS THE COUPON WAS SET AT 425 WHILE DEMAND FOR THE ISSUE WAS NOT STELLAR IT WAS WITHIN EXPECTATIONS GIVEN THE POUNDING THAT THE BOND MARKET HAS TAKEN SINCE MIDOCTOBER TRADERS SAID THAT TO A CERTAIN DEGREE THE RECENT STEEP DECLINES IN THE LONG END OF THE MARKET MAY HAVE HELPED THE TWOYEAR AUCTION AS INVESTORS HAVE SHIFTED CASH TO THE RELATIVE SAFTEY OF THE SHORT END YESTERDAY'S TWOYEAR AUCTION AND THE 11 BILLION FIVEYEAR NOTE SALE SLATED FOR TODAY TYPICALLY OCCUR LATER IN THE WEEK BUT WERE MOVED UP BECAUSE THE BOND MARKET WILL BE CLOSING EARLY TOMORROW AHEAD OF THE THANKSGIVING HOLIDAY THURSDAY THE PUBLIC SECURITIES ASSOCIATION RECOMMENDED THAT TRADING IN GOVERNMENT SECURITIES MORTAGE SECURITIES AND SECONDARY MONEYMARKET INSTRUMENTS END AT 2 PM EST BOTH TOMORROW AND FRIDAY BY LATE IN THE SESSION YESTERDAY DECLINES AMONG LONGER SECURITIES HAD DRAGGED THE SHORT END LOWER THE WHENISSUED TWOYEAR NOTE YIELDED 427 AT THE END OF TRADING COMPARED WITH 425 ON FRIDAY THE FIVEYEAR NOTE TO BE AUCTIONED TODAY YIELDED 523 COMPARED WITH 519 ON FRIDAY A LATE BOUT OF SELLING WAS ATTRIBUTED TO A REPORT FROM THE FEDERAL RESERVE SAYING THAT CREDIT DEMAND EXPANDED DURING NOVEMBER ANALYSTS HOWEVER TENDED TO VIEW THE QUARTERLY SURVEY FROM THE FED IN A LESS ALARMING LIGHT PEOPLE HAVE BEEN SCOURING THE NEWSWIRES FOR ANY REASON TO SELL AND THE FED REPORT DEFINITELY FURNISHED ONE SAID MR ALEXY OF CS FIRST BOSTON SALOMON BROTHERS MEANWHILE ANNOUNCED THAT IT IS EXTENDING ITS TENDER AND EXCHANGE OFFER FOR APPROXIMATELY 10 BILLION IN STRIPPED SECURITIES TO DEC 1 SALOMON INITIALLY HAD ESTABLISHED A DEADLINE OF 5 PM EST YESTERDAY FOR ITS OFFER TO BUY BACK OR EXCHANGE THE SECURITIES KNOWN AS CERTIFICATES OF ACCRUAL ON TREASURY SECURITIES AND TREASURY RECEIPTS SALOMON MADE THE OFFER AS PART OF AN ATTEMPT TO PUT BACK TOGETHER THE TREASURY BONDS FROM WHICH THE CATS AND TRS WERE CREATED THE MOVE IS ESSENTIALLY AN ARBITRAGE PLAY WHERE THE WHOLE SECURITIES ARE WORTH MORE THAN THE PARTS THE BONDS THAT THE CATS AND TRS WERE CREATED FROM TRADE AT A SUCH A PREMIUM THAT SALOMON CAN BUY BACK THE SEPARATED PARTS FROM INVESTORS REASSEMBLE THE BONDS AND SELL THE RECONSTITUTED ISSUES AT A PROFIT SOURCES AT SALOMON SAID THE DEADLINE WAS EXTENDED LARGELY IN RESPONSE TO REQUESTS FROM THE INVESTOR COMMUNITY FOR MORE TIME BUT RUMORS HAVE BEEN SWIRLING THAT THE TENDER IS NOT GOING WELL THAT TALK WAS FUELED BY SALOMON'S DECISION IN EARLY NOVEMBER TO ENLIST SMITH BARNEY SHEARSON INC AND PRUDENTIAL SECURITIES INC IN THE HUNT FOR THE SECURITIES OFFICIALS AT SALOMON DECLINED TO COMMENT ON HOW THE TENDER WAS FARING HERE ARE THE DETAILS OF THE THREEMONTH AND SIXMONTH BILL AUCTIONS AND THE TWOYEAR NOTE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED NOV 26 THE 13WEEK BILLS MATURE FEB 24 1994 AND THE 26WEEK BILLS MATURE MAY 26 1994 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 NOV 30 AND MATURE NOV 30 1995 CONTINUED WEAKNESS IN THE MUNICIPALBOND MARKET POSED COMPLICATIONS FOR SOME BORROWERS YESTERDAY AS ONE POSTPONED A MAJOR OFFERING AND ANOTHER REPRICED AN ISSUE RAISING YIELDS TO ATTRACT BUYERS A MERRILL LYNCH & CO GROUP HAD BEEN EXPECTED TO PRICE 220 MILLION OF BONDS THIS WEEK FOR THE SACRAMENTO COUNTY SANITATION DISTRICTS FINANCING AUTHORITY OF CALIFORNIA A SPECIAL DEBTISSUANCE AUTHORITY JOHN NEWTON CHIEF FINANCIAL OFFICER OF THE SACRAMENTO REGIONAL COUNTY SANITATION DISTRICT SAID THE OFFERING OF 50 MILLION OF REFUNDING BONDS AND ABOUT 170 MILLION OF NEWMONEY BONDS WAS PUT ON HOLD BECAUSE OF DISARRAY IN THE MARKET WE'RE GOING TO WAIT ANOTHER WEEK HE SAID IN TRADING MUNI BONDS FOLLOWED TREASURYS LOWER WITH MANY OF THEM FINISHING THE DAY'S SLOW TRADING WITH LOSSES OF 1/4 TO 3/8 POINT AMONG ACTIVE ISSUES THE FLORIDA BOARD OF EDUCATION'S 5125 COUPON BONDS MATURING IN 2022 BONDS DROPPED 1/4 POINT TO 93 1/2 TO YIELD 555 AMR CORP'S BONDS ROSE SLIGHTLY IN REACTION TO NEWS THAT STRIKING FLIGHT ATTENDANTS AT THE COMPANY'S AMERICAN AIRLINES UNIT WILL RETURN TO WORK WHILE THE REST OF THE BOND MARKET WAS EXTREMELY QUIET THE NEWISSUE AND SECONDARY MARKETS BOTH LACKED EXCITEMENT AS THE COMBINATION OF A SHORTENED HOLIDAY WEEK AND HIGHER YIELDS DROVE AWAY POTENTIAL INVESTORS SYNDICATE OFFICIALS EXPECT ISSUANCE TO REMAIN LIGHT THROUGHOUT THE WEEK AND TO PICK UP DURING THE FIRST TWO WEEKS OF DECEMBER THERE WAS 184 MILLION OF DEBT ISSUED IN THREE OFFERINGS ALL FROM THE FEDERAL HOME LOAN BANK SYSTEM TRADING IN THE INVESTMENTGRADE MARKET WAS THIN AS PRICES FOLLOWED TREASURYS LOWER SPREADS OF CORPORATE YIELDS ABOVE THOSE OF TREASURYS TIGHTENED SLIGHTLY AMR'S 10 COUPON BONDS MATURING IN 2021 ROSE 3/4 POINT TO 11425 THE YIELD DROPPED TO 862 FROM 87 IN THE HIGHYIELD MARKET TRADING WAS ALSO QUIET AS PRICES FELL IN SYMPATHY WITH THE STOCK AND CORPORATEBOND MARKETS PRICES WERE LOWER BY 1/2 TO 1/4 POINT ONE TRADER SAID MORTGAGE SECURITIES REVERSED EARLY MILD PRICE GAINS TO POST MODERATE CLOSING LOSSES BUT THEY OUTPACED GOVERNMENT SECURITIES IN THE MIDST OF THE NEW TREASURY NOTE ISSUANCE PRICES EDGED UPWARD NEAR THE OPENING AND THEN DRIFTED DOWN IN THE AFTERNOON WITHOUT ANY CLEAR CONVICTION IN EITHER DIRECTION HIGHERCOUPON MORTGAGE SECURITIES OUTPERFORMED LOWERCOUPON ISSUES AN INCREASING NUMBER OF PARTICIPANTS CONTINUED TO RETURN TO HIGHER COUPONS TAKING THE VIEW THAT INTEREST RATES HAVE BEEN RISING AND THE RISK OF EARLY PREPAYMENTS IS GENERALLY BELIEVED TO BE SUBSIDING TWO REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE ANNOUNCED FOR A TOTAL OF 800 MILLION IN NEW SECURITIES FREDDIE MAC'S 500 MILLION SERIES 1650 UNDERWRITTEN BY CITICORP USED THE AGENCY'S 30YEAR GOLD 65 MORTAGE SECURITIES AS COLLATERAL FANNIE MAE'S 300 MILLION SERIES 1993250 OFFERED BY PAINEWEBBER INC WAS BACKED BY THAT AGENCY'S 30YEAR 7 ISSUES 9311230004 931123 INTERNATIONAL VOLVO GAINS CONCESSIONS ON MERGER PLAN FRANCE VOWS TO CURB USE OF ITS GOLDEN SHARE' IN RENAULT COMBINATION BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM CROWNING A WEEK OF TENSE POLITICAL BARGAINING AB VOLVO WON CONCESSIONS FROM THE FRENCH GOVERNMENT DEEMED ESSENTIAL TO SALVAGING THE SWEDISH AUTOMAKER'S PROPOSED MERGER WITH RENAULT SA AT A HASTILY CALLED NEWS CONFERENCE HERE YESTERDAY VOLVO CHAIRMAN PEHR GYLLENHAMMAR UNVEILED CLARIFICATIONS RECEIVED FROM PARIS REGARDING BOTH THE TIMETABLE FOR RENAULT'S PRIVATIZATION AND CERTAIN POWERS THE FRENCH GOVERNMENT WOULD RETAIN UNDER A GOLDEN SHARE IN THE FUTURE RENAULTVOLVO RVA AS THE NEW ENTITY WILL BE CALLED DISGRUNTLED VOLVO SHAREHOLDERS HAVE FREQUENTLY CITED BOTH PRIVATIZATION AND THE GOLDEN SHARE AS POTENTIAL DEALBREAKERS MR GYLLENHAMMAR ACKNOWLEDGED MEANWHILE IN A LETTER TO SWEDISH PREMIER CARL BILDT FRENCH PREMIER EDOUARD BALLADUR PROMISED THAT THE FRENCH GOVERNMENT INTENDS TO ACTIVELY PURSUE THE PRIVATIZATION PROGRAM APPROVED SEVERAL MONTHS AGO AS PART OF THAT PROGRAM THE STATE'S ENTIRE 65 HOLDING IN RENAULTVOLVO WILL BE SOLD DURING THE SECOND HALF OF NEXT YEAR MARKET CONDITIONS PERMITTING MR BALLADUR ADDED PREVIOUSLY THE GOVERNMENT HAD OUTLINED PLANS TO PRIVATIZE RENAULT BY JUNE 1995 BECAUSE VOLVO SHAREHOLDERS WILL RECEIVE PAYMENT IN NEW RENAULTVOLVO SHARES THEY ARE ANXIOUS FOR THE NEW MERGED COMPANY TO BE PRIVATIZED AND MAKE ITS STOCKMARKET DEBUT AS SOON AS POSSIBLE SOME SWEDISH INVESTORS FRET THAT A CHANGE OF GOVERNMENT COULD DERAIL THE PRIVATIZATION PROGRAM AND DELAY RENAULTVOLVO'S STOCKMARKET DEBUT BOTH THE BOARD AND MANAGEMENT ARE CONFIDENT THAT THIS NEW INFORMATION WILL BE ENOUGH TO ENSURE APPROVAL OF THE MERGER PLAN AT A SPECIAL MEETING OF VOLVO SHAREHOLDERS ON DEC 7 MR GYLLENHAMMAR ADDED DESPITE THAT STATEMENT IT ISN'T CLEAR IF THE FRENCH CONCESSIONS WILL SWAY VOLVO SHAREHOLDERS AKTIESPARARNA A SMALL SHAREHOLDERS GROUP MOUNTING A PROXY BATTLE TO FORCE CANCELLATION OR RENEGOTIATION OF THE MERGER PACT REAFFIRMED ITS OPPOSITION LAST NIGHT THE BIG INSTITUTIONAL SHAREHOLDERS THAT WILL DECIDE THE BATTLE WERE MORE GUARDED IN INITIAL REACTIONS BJOERN WOLRATH CHIEF EXECUTIVE OFFICER OF INSURER SKANDIA INSURANCE CO HAD DEMANDED FUNDAMENTAL CHANGES IN THE GOLDEN SHARE AND PRIVATIZATION IN A SHARP ATTACK ON THE PROPOSED MERGER LAST WEEK LAST NIGHT MR WOLRATH DECLINED TO COMMENT SAYING HE NEEDED MORE TIME TO STUDY THE NEW INFORMATION IN READDRESSING THE MUCHDEBATED VALUATION OF THE NEW MERGED COMPANY VOLVO EXECUTIVES ALSO ARGUED YESTERDAY THAT COST SAVINGS FROM CLOSER COOPERATION WOULD LEAD TO BIGGER COST SAVINGS THAN ORIGINALLY PROJECTED TOTAL POTENTIAL SAVINGS FROM THE MERGER HAD PREVIOUSLY BEEN PROJECTED AT 30 BILLION FRENCH FRANCS 504 BILLION BY THE YEAR 2000 BUT AFTER AN INDEPENDENT REVIEW BY CONSULTING FIRM BOOZALLEN & HAMILTON VOLVO BOOSTED THE POTENTIAL SAVINGS TALLY BY 40 TO 42 BILLION FRANCS BUT THE SWEDISH COMPANY RETREATED SOMEWHAT FROM AN EARLIER PREDICTION THAT VOLVORENAULT WOULD ACHIEVE AN AVERAGE ANNUAL OPERATING MARGIN OF 7 OVER A BUSINESS CYCLE ADDING THAT GOAL IS ONLY POSSIBLE IF GLOBAL CAR MARKETS DEVELOP IN A MANNER THAT ALLOWS THE INDUSTRY'S BEST COMPANIES TO ACHIEVE SIMILAR PROFIT LEVELS 9311230003 931123 POLITICS & POLICY HOUSE VOTES TO OVERHAUL FINANCING OF CAMPAIGNS REJECTS NEW DEFICIT CUTS BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE VOTED TO OVERHAUL CAMPAIGN FINANCE LAWS BUT SIDESTEPPED NEW CURBS ON GIFTS FROM LOBBYISTS ENSURING RENEWED DEBATE ON POLITICAL REFORM WHEN LAWMAKERS SEEK REELECTION IN 1994 AS IT WORKED TOWARD ADJOURNING FOR THE YEAR THE HOUSE ALSO DEFEATED AN EFFORT BY REPUBLICANS AND CONSERVATIVE DEMOCRATS TO CUT THE PROJECTED DEFICIT BY AN ADDITIONAL 90 BILLION OVER FIVE YEARS THE COMBINED OPPOSITION OF DEMOCRATIC LEADERS AND THE WHITE HOUSE PROVED TOO MUCH FOR THE SPONSORS REPS TIM PENNY D MINN AND JOHN KASICH R OHIO TO OVERCOME AND THEIR PROPOSAL LOST BY A 219213 VOTE ANOTHER LASTMINUTE BATTLE APPEARED TO DOOM PROSPECTS FOR CONGRESS'S COMPLETING ACTION ON THE BRADY BILL WHICH WOULD IMPOSE A FIVEDAY WAITING PERIOD ON HANDGUN PURCHASES AND SENDING IT TO PRESIDENT CLINTON FOR HIS SIGNATURE BY THANKSGIVING A HOUSESENATE CONFERENCE REACHED AGREEMENT ON A COMPROMISE YESTERDAY BUT REPUBLICAN OPPONENTS COMPLAINED THAT IT WENT TOO FAR BEYOND WHAT THEY HAD RELUCTANTLY ALLOWED TO PASS LAST WEEKEND WE GOT ZIPPO ZERO COMPLAINED REPUBLICAN LEADER ROBERT DOLE OF KANSAS A STRONG ALLY OF THE NATIONAL RIFLE ASSOCIATION BUT MAJORITY LEADER GEORGE MITCHELL OF MAINE VOWED TO BRING THE SENATE BACK AFTER THANKSGIVING IF NEEDED TO FORCE FINAL ACTION ON THE MEASURE THE HOUSE ACTION ON CAMPAIGN FINANCE WAS AN INITIAL STEP TOWARD FULFILLING REFORM PLEDGES BY CONGRESSIONAL DEMOCRATS AND THE CLINTON ADMINISTRATION BY A 255175 VOTE MOSTLY ALONG PARTY LINES LAWMAKERS APPROVED THE DEMOCRATIC LEADERSHIP'S PLAN TO SET A VOLUNTARY LIMIT OF 600000 ON CAMPAIGN SPENDING PROVIDE GOVERNMENTFUNDED ADVERTISING VOUCHERS OF AS MUCH AS 200000 FOR THOSE WHO COMPLY WITH THOSE LIMITS AND CAP AT 200000 THE AMOUNT OF MONEY CANDIDATES CAN RECEIVE FROM POLITICAL ACTION COMMITTEES OR LARGE CONTRIBUTORS BUT THE PLAN CONTAINS SIGNIFICANT CONCESSIONS AND LOOPHOLES BENEFITING DEMOCRATIC INCUMBENTS AND CONSTITUENCY GROUPS EVEN SO IT'S UNCLEAR THAT THE MEASURE WILL ULTIMATELY BE ENACTED SUBSTANTIAL DIFFERENCES WITH THE SENATEPASSED VERSION MUST BE NEGOTIATED NEXT YEAR AND HOUSE DEMOCRATS THEMSELVES LEFT UNRESOLVED A LINCHPIN OF THEIR PLAN HOW TO PAY FOR THE ADVERTISING VOUCHERS IN LIGHT OF WIDESPREAD OPPOSITION TO THE USE OF TAXPAYERS' MONEY THIS IS THE BEST WE CAN DO AT THIS MOMENT SAID HOUSE SPEAKER THOMAS FOLEY D WASH WHO EXPRESSED HOPE THAT THE CAMPAIGN FINANCE VOTE WOULD HELP TO BUILD BACK PUBLIC CONFIDENCE IN THE POLITICAL SYSTEM BUT THE HOUSE OPENED ITSELF TO FURTHER CRITICISM BY PUTTING OFF ACTION ON LOBBYING REFORM WHICH LEADERS HAD HOPED TO PASS THIS YEAR THE LOBBYING LEGISLATION WOULD SHARPLY INCREASE THE NUMBER OF PEOPLE REQUIRED TO REGISTER AS LOBBYISTS BUT WHAT PROVOKED OPPOSITION FROM MEMBERS AND FORCED THE DELAY WERE PROVISIONS THAT AIM TO RESTRICT OR FORCE DISCLOSURE OF GIFTS TRAVEL AND ENTERTAINMENT THAT LAWMAKERS CAN ACCEPT FROM SPECIAL INTERESTS PRESSURED BY REFORMMINDED FRESHMEN DEMOCRATIC LEADERS AND THEIR GOP COUNTERPARTS REACHED A TENTATIVE AGREEMENT THAT WAS APPROVED YESTERDAY BY A HOUSE JUDICIARY SUBCOMMITTEE BUT DEMOCRATIC HOUSE LEADERS SAID THEY COULDN'T FORCE QUICK FLOOR ACTION BECAUSE OF RESISTANCE FROM THE GOP RANKANDFILE IN FACT THERE WAS ALSO SUBSTANTIAL OPPOSITION FROM DEMOCRATS WHO RARELY DEFER TO THE WISHES OF REPUBLICANS ON LEGISLATION OUTSIDE VOICES FROM ROSS PEROT TO PUBLICINTEREST GROUPS ARE CERTAIN TO KEEP UP PRESSURE FOR CHANGES AS MIDTERM ELECTIONS APPROACH HOWEVER THERE'S NO WAY ANYONE'S GETTING OUT OF THIS SAID FRED WERTHEIMER PRESIDENT OF COMMON CAUSE THE LASTMINUTE FIGHT OVER MORE SPENDING CUTS WAS MORE CONTENTIOUS AND MORE PUBLIC THE BIPARTISAN 90 BILLION DEFICITCUTTING PACKAGE DREW FIERCE ATTACK FROM DEMOCRATIC CONSTITUENCIES INCLUDING LABOR UNIONS WHILE THE ADMINISTRATION ARGUED IT WOULD UNDERCUT HEALTHCARE REFORM ERODE DEFENSE READINESS AND STARVE MR CLINTON'S SPENDING PRIORITIES BUDGET COMMITTEE CHAIRMAN MARTIN SABO D MINN OFFERED AN ALTERNATIVE CALLING FOR 37 BILLION IN SPENDING CUTS MOSTLY FROM THE ADMINISTRATION'S PLAN TO REINVENT GOVERNMENT AND CUTTING THE FEDERAL WORK FORCE BY 252000 HIS PROPOSAL WHICH WOULDN'T SHRINK THE DEFICIT BECAUSE IT WOULDN'T TOUCH EXISTING SPENDING CEILINGS PASSED 272163 REPS PENNY AND KASICH CAST THEIR PLAN AS A REFERENDUM ON PUBLIC DEMANDS FOR MORE SPENDING CUTS AT A TIME WHEN MANY LAWMAKERS ARE UNDER FIRE FOR BACKING HIGHER TAXES IN MR CLINTON'S ECONOMIC PROGRAM BUT THEY RAN INTO INCREASING DIFFICULTY WOOING DEMOCRATS ONLY A THIRD OF THE PARTY'S FISCALLY CONSCIOUS FRESHMAN CLASS ULTIMATELY SIDED WITH THEM AND DEVOTED MUCH OF YESTERDAY'S SESSION TO FIRMING UP REPUBLICAN SUPPORT MR PENNY MADE A RARE DEMOCRATIC APPEARANCE AT A GOP CAUCUS MEETING AND CONSERVATIVE REPUBLICANS USED THE SESSION TO PRESSURE PARTY MODERATES CHASTISING GOP APPROPRIATIONS COMMITTEE MEMBERS FOR JOINING SENIOR DEMOCRATS IN A LETTERWRITING CAMPAIGN THAT REMINDED MEMBERS OF PET PROJECTS THAT MIGHT BE IMPERILED AFTER VOTING ON SPENDING CUTS THE HOUSE PLANNED TO APPROVE AND SEND TO MR CLINTON'S DESK BILLS THAT WOULD EXTEND EMERGENCY JOBLESS BENEFITS FOR THE LONGTERM UNEMPLOYED PROVIDE 183 BILLION TO REVIVE THE GOVERNMENT'S STALLED CLEANUP OF THE SAVINGSANDLOAN INDUSTRY AND STRENGTHEN REGULATION OF THE GOVERNMENT SECURITIES MARKET 9311230001 931123 BUSINESS BRIEF BOW VALLEY ENERGY INC PACT IS REACHED TO ACQUIRE INTEREST IN NAMIBIAN WELL BOW VALLEY ENERGY INC SAID IT AGREED TO ACQUIRE A 15 WORKING INTEREST IN AN EXPLORATION PLAY OFF THE COAST OF NAMIBIA BOW VALLEY BASED IN CALGARY ALBERTA ACQUIRED THE INTEREST FROM NORSK HYDRO THE OPERATOR OF THE PROJECT AND SAGA PETROLEUM AS THE TRANSACTION WILL LEAVE NORSK HYDRO WITH A 325 INTEREST IN THE PROJECT AND SAGA WITH 225 OF THE VENTURE VALUE OF THE TRANSACTION WASN'T DISCLOSED THE ACQUISITION OF THE STAKE BY BOW VALLEY REQUIRES APPROVAL BY THE NAMIBIAN GOVERNMENT A SPOKESWOMAN FOR THE COMPANY SAID IT WOULD BE BOW VALLEY'S FIRST VENTURE IN SUBSAHARAN AFRICA THE EXPLORATION LICENSE WAS AWARDED IN APRIL 1992 AND WORK ON THE FIRST EXPLORATORY WELL WAS BEGUN THIS MONTH A SECOND EXPLORATORY WELL MAY BE DRILLED IN THE THIRD QUARTER OF 1994 THE BOW VALLEY SPOKESWOMAN SAID 9311230097 931011 NEW PRAGMATISM CLEVELAND'S MAYOR SHUNS BLACK THEMES TO COURT WHITE VOTES CROSSOVER POLITICS HELP BLUR MANY RACIAL LINES DRAWN BY PREVIOUS GENERATION SELLING THE CITY IS NO SELLOUT BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL CLEVELAND THE CUYAHOGA RIVER WINDS THROUGH THE MIDDLE OF THIS CITY SPLITTING BLACK EAST SIDE FROM WHITE WEST SIDE IT IS A STREAM NO BLACK POLITICIAN SUCCESSFULLY CROSSED UNTIL MICHAEL R WHITE CAME ALONG IN 1989 WHEN THE STATE SENATOR AND FORMER COUNCILMAN FROM THE EAST SIDE LAUNCHED HIS BID FOR MAYOR HE HAD FEW BACKERS IN ANY PART OF TOWN BUT BY WORKING CLEVELAND'S WHITE SECTIONS HE WON THE RACE DESPITE LOSING THE BLACK VOTE SINCE THEN HE HAS WOOED BUSINESS AND BUILT A COALITION OF BACKERS BROADER THAN ANY ASSEMBLED HERE BEFORE FROM CHIEF EXECUTIVES TO GANG LEADERS MINISTERS TO COPS HE WAS ABLE TO GO ACROSS THE RIVER AND REPRESENT THE WHITE INTEREST AS WELL AS BLACK SAYS GEORGE L FORBES THE POLITICALLY POWERFUL FORMER CITY COUNCIL PRESIDENT WHO WAS MR WHITE'S CHIEF OPPONENT IN 1989 MR FORBES TOOK 70 OF THE BLACK VOTE BUT GARNERED ONLY 5 OF WHITE BALLOTS IN A POPULATION DIVIDED ROUGHLY IN HALF BY RACE THAT COST HIM THE ELECTION I WENT OVER TO WHITE NEIGHBORHOODS BUT IT WAS VERY PAINFUL SAYS MR FORBES NOW PRESIDENT OF THE CLEVELAND BRANCH OF THE NAACP MY GENERATION CAME OUT OF A STRONG BLACKCIVILRIGHTS MOVEMENT AND WE ALWAYS WENT BACK TO BLACK ISSUES THE 42YEAROLD MR WHITE IS ONE OF A NEW GENERATION OF AFRICANAMERICAN LEADERS WHO HAVE TRADED IN 1960S IDEALISM FOR '90S PRAGMATISM REPLACING OLDER LEADERS SUCH AS MR FORBES WITH HIS HOT TEMPER AND RACIALLY CONFRONTATIVE STYLE THEY SEE THEMSELVES AS BUILDERS OF BROAD CONSTITUENCIES WORKING WITHIN THE SYSTEM NOT ENVOYS FROM THE BLACK COMMUNITY OPPOSING THE SYSTEM WE'RE TRYING TO PRACTICE THE ART OF ADDITION THE POLITICS OF INCLUSION MR WHITE SAYS THERE'S A FOREST FIRE OF DIVISION RIGHT NOW THE CITY WON'T SURVIVE WITH A BLACK STRATEGY OR A WHITE STRATEGY IT'S GOT TO BE A CLEVELAND STRATEGY SUCH CROSSOVER POLITICS ARE ONE REASON FOR THE FIVEFOLD INCREASE IN AFRICANAMERICAN ELECTED OFFICIALS SINCE 1970 THE JOINT CENTER FOR POLITICAL AND ECONOMIC STUDIES SAYS A DOZEN OF THE 39 BLACK MEMBERS OF THE US HOUSE OF REPRESENTATIVES ARE FROM BLACKMINORITY DISTRICTS AND HALF TOOK OFFICE IN THE LAST FOUR YEARS THERE ARE NOW MORE THAN THREE DOZEN AFRICANAMERICAN MAYORS OF BIG CITIES THE NEW CROSSOVER BLACK MAYORS SUCH AS BALTIMORE'S KURT SCHMOKE AND SEATTLE'S NORMAN B RICE POLL BETTER AMONG WHITE VOTERS THAN DID OLDER LEADERS SUCH AS COLEMAN YOUNG WHO IS RETIRING AFTER TWO DECADES AS DETROIT'S CHIEF THEY ALSO FIND BEING BLACK NO LONGER GUARANTEES BLACK VOTES SOME THINK THE BROAD CENTRIST POLICIES OF THESE NEW BLACK LEADERS DILUTE THEIR EFFECTIVENESS SYMBOLIC POLITICS IS ONLY SO IMPORTANT SAYS RONALD WALTERS A HOWARD UNIVERSITY POLITICAL SCIENTIST IF AN AFRICANAMERICAN LEADER IS NOT ABLE TO DELIVER FOR THE COMMUNITY BLACK FOLKS WON'T GET MUCH BESIDES THE POSITION IN CLEVELAND CRITICS IN THE BLACK COMMUNITY DUB MIKE WHITE WHITE MIKE THEY SEE HIM AS A CAREER POLITICIAN WHO STRUCK A FAUSTIAN BARGAIN WITH THE CITY'S WHITE BUSINESS INTERESTS IT IS TRUE THAT MR WHITE WHO SAYS HE WANTED TO BE MAYOR SINCE HIGH SCHOOL IS STRONGER IN CLEVELAND'S BOARDROOMS THESE DAYS THAN IN ITS BACK STREETS BUT MR WHITE'S STRATEGY APPEARS TO WORK WELL BOTH FOR HIM AND CLEVELAND'S BLACK COMMUNITY HE HAS SECURED A 500 MILLION INVESTMENT IN DOWNTOWN DEVELOPMENT AND ORCHESTRATED THE CITY'S BIGGEST HOUSING BOOM IN 40 YEARS MOSTLY IN BLIGHTED BLACK NEIGHBORHOODS AND OFTEN HANDLED BY MINORITY CONTRACTORS AND THE DEMOCRATIC MAYOR NOW IS RUNNING FOR REELECTION WITH HUGE POPULARITY MORE THAN 1 MILLION IN CAMPAIGN FUNDS AND NO SERIOUS OPPONENT A HIGHSCHOOL STUDENT IN THE LATE 1960S MR WHITE LIVED IN THE GLENVILLE AREA OF CLEVELAND'S EAST SIDE DURING THE RIOTS AFTER MARTIN LUTHER KING JR'S ASSASSINATION MR WHITE SAW HIS WONDERFUL NEIGHBORHOOD BEING BURNED TO THE GROUND RECALLS HIS SISTER MARSHA M HAYS MR WHITE BELIEVES THE RIOTS DERAILED THE CAREER OF CARL STOKES ONE OF THE NATION'S FIRST BLACK BIGCITY MAYORS AND HE HAS DRAWN LESSONS FROM THE BITTER RACIAL DIVISIVENESS OF THOSE TIMES I LEARNED YOU DON'T MAKE PROGRESS STANDING OUTSIDE THROWING BRICKS MR WHITE SAYS I DON'T HAVE TO POINT AND SCREAM I'M THE MAYOR I DON'T OPERATE FROM A POSITION OF POWERLESSNESS I'M ON THE INSIDE AND MY CHALLENGE IS TO USE THE POWER IN THAT REGARD HE FAULTS TWO OF THE PREVIOUS GENERATION'S BLACK LEADERS MALCOLM X AND MARTIN LUTHER KING JR FOR BEING UNIDIMENSIONAL SAYS MR WHITE THEIR REPERTOIRE OF STRATEGIES WASN'T BROAD FROM THE START MR WHITE HAS BEEN MORE POLITICIAN THAN IDEOLOGUE ADJUSTING HIS MESSAGE TO SUIT HIS CONSTITUENCY AS A LEADER OF OHIO STATE UNIVERSITY'S BLACK STUDENT GROUP IN THE LATE 1960S AND EARLY 1970S HE ORGANIZED CIVILRIGHTS PROTESTS JOINED AN ALLBLACK FRATERNITY AND WORKED WITH THE BLACK PANTHERS THOUGH HE WAS NOT A MEMBER OF THAT MILITANT GROUP BUT WHEN HE DECIDED IN 1972 THAT HE WANTED TO BE PRESIDENT OF THE STUDENT GOVERNMENT AT LARGELY WHITE OHIO STATE HE TAPPED A WHITE FRATERNITY MEMBER AS HIS RUNNING MATE AND SPENT MUCH OF HIS CAMPAIGN WORKING FRATERNITY ROW ON 15TH STREET IN COLUMBUS HE BEAT HIS WHITE OPPONENT HANDILY AND BECAME THE FIRST AFRICANAMERICAN TO LEAD THE STUDENT GOVERNMENT I WASN'T A CAMPUS RADICAL MR WHITE SAYS TODAY I'VE NEVER BEEN A RADICAL IN MY ENTIRE LIFE ABOUT ANYTHING AFTER GRADUATE SCHOOL MR WHITE BECAME AN AIDE TO MR FORBES BEFORE WINNING HIS OWN COUNCIL SEAT IN 1977 AS A FORBES PROTEGE AND REPRESENTATIVE FROM A MOSTLY BLACK DISTRICT MR WHITE ADOPTED HIS MENTOR'S STYLE OF RACIAL POLITICS WHEN FANNIE LEWIS A BLACK WOMAN WHO HAD WORKED FOR THE CITY'S WHITE MAYOR WAS ELECTED TO COUNCIL SHE SAYS MR WHITE TOLD HER YOU'RE A WHITEFOLKS NIGGER AND YOU ALWAYS WILL BE I HAD A SHARP QUICK TONGUE AND I WOULD DRAW IT AT A MOMENT'S NOTICE HE SAYS NOW AS YOU GROW OLDER YOU LEARN A BROADER STRATEGY I'M AT A POINT IN LIFE WHERE FIGHTING IS A LAST RESORT IN 1984 HE WAS APPOINTED TO A VACANT SEAT IN THE OHIO SENATE AND AGAIN ADAPTED HIS THEMES TO APPEAL TO HIS BROADER ELECTORATE WHICH INCLUDED A LARGE SUBURBAN JEWISH POPULATION THAT HELPED HIM BROADEN HIS MESSAGE FOR HIS 1989 MAYORAL RUN THOUGH HE OWED THAT VICTORY IN PART TO LUCK IN THE NONPARTISAN PRIMARY THE TWO LEADING WHITE CANDIDATES SPLIT THE WHITE VOTE AND LEFT MR FORBES AND MR WHITE AS THE TOP VOTEGETTERS IN THE SUBSEQUENT RUNOFF FOR MAYOR MR FORBES LOST TO HIS FORMER PROTEGE BECAUSE MR WHITE HAD THE SUPPORT OF WHITE VOTERS AT 715 IN THE MORNING THE MAYOR DASHES FROM THE FRONT SEAT OF HIS FORD CROWN VICTORIA UP TWO FLIGHTS OF STAIRS TO HIS CITY HALL OFFICE AIDES SCRAMBLING AFTER HIM SOON AFTER HE BOUNDS OUT AGAIN WAVING TO HIS FRIENDS BUMPING INTO ONE OF THEM THEN ZOOMING AROUND TOWN TO VISIT HIS VARIOUS CONSTITUENTS A NEWHOME DEDICATION ON THE BLIGHTED EAST SIDE A CLASS OF POLICE RECRUITS A GROUP OF CITY WORKERS A RALLY ON PUBLIC SQUARE FIERCELY DRIVEN MR WHITE IS A MICROMANAGER WHOSE 15HOUR DAYS AT THE OFFICE SEVEN DAYS A WEEK LED ONE OF HIS DRIVERS TO REQUEST A NEW ASSIGNMENT THE 5FOOT7 MAYOR THRICE MARRIED HAS A LEGENDARY TEMPER THAT EARNED HIM THE NICKNAME MIKE THE KNIFE AND HAS LED TO SHOUTING MATCHES IN CABINET MEETINGS HE MIXES HIS SPEECH WITH PROFANITY REFERENCES TO HIS BAPTIST CHURCH AND AN OCCASIONAL ALLUSION TO THOMAS JEFFERSON THE MAYOR WITH A BEARD THAT HAS BECOME STREAKED WITH GRAY SINCE HE TOOK OFFICE DOESN'T LIKE TO JOKE OR MAKE SMALL TALK AND HAS FEW FRIENDS OUTSIDE OF POLITICS DARLENE MCCOY HIS CHIEF OF STAFF SAYS SHE HAS BEEN MR WHITE'S FRIEND FOR ALMOST 20 YEARS AND I DON'T THINK I'VE EVER HAD A CONVERSATION WITH HIM THAT'S BEEN PURELY NONWORK RELATED AS MAYOR MR WHITE IMMEDIATELY SET OUT TO WIN OVER THE BUSINESS COMMUNITY THE DAY AFTER THE ELECTION MR WHITE CALLED ON RICHARD W POGUE HEAD OF THE HUGE JONES DAY REAVIS & POGUE LAW FIRM AND DEAN OF THE BUSINESS COMMUNITY TO SEEK THE LAWYER'S SUPPORT SAYS MR POGUE I WAS VERY IMPRESSED MR WHITE CALLED ON OTHER BUSINESS LEADERS HIRED A CORPORATE LAWYER TO COCHAIR HIS TRANSITION AND IN MARCH 1990 PLACED AN AD IN FORTUNE MAGAZINE WITH A PHOTO OF HIM OPENING THE DOOR TO HIS OFFICE AND TITLED CLEVELANDOPEN FOR BUSINESS AT HIS FIRST CABINET MEETING MR WHITE WHO HAS A MASTER'S DEGREE IN PUBLIC ADMINISTRATION TOLD HIS STAFF TO VIEW CITIZENS AS CUSTOMERS HE SET UP A MONTHLY MAYOR'S NIGHT IN SO ANY CITIZEN CAN HAVE FIVE MINUTES WITH THE MAYOR THE BEST THING A MANAGER CAN DO IS RUN HIS OWN COMPLAINT DEPARTMENT HE SAYS THE MAYOR LAUNCHED A HUGE DOWNTOWN INVESTMENT CAMPAIGN SALVAGING PROJECTS THAT HAD FLOUNDERED FOR YEARS HE WON APPROVAL FOR A 365 MILLION SPORTS COMPLEX THAT DREW THE CLEVELAND CAVALIERS BASKETBALL TEAM BACK DOWNTOWN FROM THE SUBURBS AND THE 92 MILLND ROLL HALL OF FAME AND MUSEUM THE RESULT OF ALL THIS IS ALMOST FAWNING CORPORATE ADMIRATION I WOULD DO ALMOST ANYTHING FOR MIKE WHITE SAYS LYMAN PHILLIPS CHIEF EXECUTIVE OF CLEVELAND ELECTRIC ILLUMINATING CO THAT PRAISE COMES DESPITE A BITTER BATTLE BETWEEN MR PHILLIPS'S COMPANY AND THE CITY'S OWN POWER COMPANY BUT THE PRAISE FROM THE CITY'S BUSINESS COMMUNITY DOESN'T PLAY WELL IN CLEVELAND'S POORER NEIGHBORHOODS EVEN SOME OLD FRIENDS OF THE MAYOR SAY HE HAS BETRAYED HIS ROOTS HE'S GONE TOO FAR AND DILUTED HIS POTENTIAL ABILITY TO HELP POOR BLACKS IN THE CITY SAYS STATE SEN JEFFREY JOHNSON A PROTEGE OF MR WHITE WHO HAS SINCE SPLIT WITH THE MAYOR THE MAYOR RAN AFOUL OF SOME BLACK RESIDENTS EARLIER THIS YEAR WHEN HE DECIDED THERE WAS NO LEGAL BASIS TO FILE CRIMINAL CHARGES AGAINST TWO WHITE POLICE OFFICERS AFTER A BLACK MAN DIED IN THEIR CUSTODY MR WHITE ALSO DREW BARBS FOR DECLINING TO JOIN THE BLACK ELECTED DEMOCRATS OF CLEVELAND HE INDICATED HIS POSITION AS BEING A MAYOR OF ALL THE PEOPLE WOULD BE DETRACTED FROM BY BEING A MEMBER OF THE ORGANIZATION SAYS US REP LOUIS STOKES THE OHIO DEMOCRAT WHO FOUNDED THE GROUP STILL OTHERS OBJECT TO THE LARGE TAX ON CIGARETTES AND ALCOHOL THE MAYOR PUSHED THROUGH TO HAVE THE SPORTS COMPLEX BUILT THE TAX PASSED BUT WITHOUT THE SUPPORT OF MOST BLACK VOTERS I THOUGHT IT WAS HORRENDOUS TO MAKE THE POOR PEOPLE OF CLEVELAND PAY FOR A BALLPARK FOR ALL THE RICH WHITE FOLKS FROM THE SUBURBS SAYS JOHN LENEAR SENIOR EDITOR OF CALL AND POST A NEWSPAPER READ IN THE BLACK COMMUNITY UNEMPLOYMENT UNDER THE WHITE ADMINISTRATION HAS GROWN TO 121 FROM 91 AND IT IS UNCLEAR WHETHER THE 287 FIGURE FOR CLEVELANDERS LIVING IN POVERTY HAS IMPROVED DESPITE HIS CAMPAIGN PROMISES TO INCREASE THE SIZE OF THE POLICE FORCE IT ACTUALLY DECLINED 2 UNDER MR WHITE THE MAYOR DOESN'T REPRESENT THE BLACK COMMUNITY SAYS COUNCILWOMAN LEWIS THE MAYOR IS BOUGHT AND SOLD BY THE POWER STRUCTURE IN THIS CITY THE MAYOR BRISTLES AT THE SUGGESTION THAT HE IS TOO CLOSE TO BUSINESS THEY'RE WITH ME BUT NOT WITHIN ME HE SAYS MR WHITE HAS PERSUADED FOUR CLEVELAND BANKS TO COMMIT 500 MILLION OVER THE NEXT FEW YEARS TO NEIGHBORHOOD DEVELOPMENT THERE HAS BEEN MORE NEW HOUSING CONSTRUCTED UNDER HIS TERM THAN AT ANY TIME SINCE THE 1950S WHEN BANC ONE CORP RESISTED HIS APPEALS FOR MORE COMMUNITY INVESTMENT HE WENT TO THE FEDERAL RESERVE TO TRY TO BLOCK THE BANK'S ACQUISITION OF AN ARIZONA BANK BANC ONE COUGHED UP 67 MILLION I WOULDN'T HAVE GOT 500 MILLION FROM THE BANKS THROWING BRICKS AT THEM AND CALLING THEM DIRTY NAMES HE SAYS I WENT TO THE TRUNK GOT A CLUB OUT AND BEAT THEM OVER THE HEAD IF I HAD SOLD OUT I WOULDN'T USE THAT CLUB MR WHITE SUCCESSFULLY BACKED A SLATE OF FOUR CANDIDATES FOR THE SEVENMEMBER CLEVELAND SCHOOL BOARD BREAKING AN OLD STALEMATE THAT HAD STALLED REFORM FOR YEARS HE ALSO HAS BEEN SEEN BOARDING UP DRUG HOUSES AND ONCE MADE A DRUG ARREST WITH HIS DRIVER A POLICEMAN HE FORMED RACIALDIALOGUE GROUPS AND TRAINED MEDIATORS CALLED PEACEKEEPERS VIOLENT CRIMES IN THE CITY ARE DOWN 6 DURING HIS TERM CREDITED BY MANY FOR PREVENTING RIOTING IN CLEVELAND AFTER THE FIRST RODNEY KING TRIAL VERDICT THE MAYOR SPENT THAT NIGHT DRIVING AROUND TOWN APPEALING FOR CALM HE MET AT 7 AM THE NEXT MONDAY MORNING WITH BUSINESS LEADERS AND FORMED A COMMITTEE TO CREATE MORE SUMMER JOBS MORE ENTRYLEVEL JOBS AND MORE HELP FOR MINORITY ENTREPRENEURS THAT HAS IMPRESSED MOST CLEVELANDERS BLACK OR WHITE AND DONE MUCH TO SHED THE WHITE MIKE NICKNAME WHATEVER ANYONE MIGHT HAVE CALLED HIM THEN THEY'D HAVE TO CALL HIM RIGHT MIKE' NOW SAYS THE REV OTIS MOSS A BAPTIST MINISTER WHO BACKED MR FORBES IN THE 1989 ELECTION THAT SEEMS ALL MR WHITE CARES ABOUT RIGHT NOW HE DEMURRED WHEN THE CLINTON ADMINISTRATION APPROACHED HIM ABOUT A JOB AS SECRETARY OF HOUSING AND URBAN DEVELOPMENT RULES OUT A RUN FOR GOVERNOR AND SAYS HE IS ONLY LUKEWARM ON A SENATE RACE HE SAYS HE JUST WANTS TO HEAL CLEVELAND I LOVE THE TOWN THERE'S NOT TOO MUCH ELSE I LOVE MORE HE SAYS IT'S LIKE WATCHING A FOOTBALL GAME FOR YEARS AND WANTING TO GET ON THE FIELD NOW I'M IN THE GAME 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 9311230010 931028 SPEAKING OF BUSINESS THE SIN TAX CLINTON OVERLOOKED BY LINDLEY H CLARK JR THOUGH PRESIDENT CLINTON'S VOLUMINOUS HEALTH PLAN HAS FINALLY BEEN SENT TO CONGRESS THE PLAN'S FINANCIAL FUTURE ISN'T COMPLETELY CLEAR MR CLINTON IS COUNTING ON 65 BILLION FROM RAISING THE FEDERAL TAX ON CIGARETTES TO 99 CENTS A PACK FROM 24 CENTS THOUGH THERE IS AT LEAST SOME DOUBT WHETHER CONGRESS WILL PASS SUCH A HUGE CIGARETTE TAX INCREASE THE PRESIDENT PROBABLY FIGURED THE CIGARETTE INCREASE AND THE HEALTH BILL MADE A PERFECT COUPLE AFTER ALL CIGARETTES HAVE BEEN REVILED FOR YEARS AS COFFIN NAILS AND A NUMBER OF STUDIES HAVE SHOWN THAT RAISING THE COST OF CIGARETTES DECREASES CONSUMPTION SO WHY NOT TIE A TAX INCREASE TO THE HEALTH BILL THERE'S A CERTAIN LOGIC TO THAT PERHAPS BUT PEOPLE WITH REASONABLY GOOD MEMORIES WILL RECALL THAT THERE WAS INITIAL TALK OF FINANCING THE HEALTH PACKAGE WITH SIN TAXES INCLUDING HIGHER TAXES ON LIQUOR WINE AND BEER NOW HOWEVER NOTHING OFFICIAL IS BEING SAID ABOUT A BOOZE LEVY IT CAN HARDLY BE THAT THE ADMINISTRATION HAS DECIDED THAT A FEW SWIGS FROM A BOTTLE IS GREAT FOR EVERYONE'S HEALTH COMPETENT DOCTORS TRY NOT ALWAYS SUCCESSFULLY TO LIMIT THE AMOUNT OF THE STUFF THAT THEIR PATIENTS DRINK EQUALLY IF NOT MORE IMPORTANT NATIONAL STATE AND LOCAL AUTHORITIES HAVE BEEN TRYING FOR YEARS TO STOP PEOPLE FROM DRINKING AND THEN DRIVING THE FOLKS WHO RUSH FROM A BAR TO A CAR OFTEN END UP BEING DANGEROUS NOT ONLY TO THEIR OWN HEALTH BUT TO THE HEALTH OF SOBER PEOPLE ON THE HIGHWAYS THE EFFORT TO CURB THE BARTOCAR HABIT HAS BEEN FOCUSED HEAVILY ON TEENAGERS AND YOUNG ADULTS ACCORDING TO A RECENT NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER THIS FOCUS HAS BEEN ADOPTED THE BUREAU ECONOMISTS SAY BECAUSE MOTOR VEHICLE ACCIDENT MORTALITY IS THE LEADING CAUSE OF DEATH OF PERSONS UNDER THE AGE OF 35 AND ALCOHOL IS INVOLVED IN OVER HALF OF THESE FATAL CRASHES ANALYSTS WHO HAVE STUDIED THIS PROBLEM DECIDED TO FOCUS ON THE YOUNG BECAUSE ALCOHOL ABUSE IN ADOLESCENCE SEEMS TO BE ASSOCIATED WITH ALCOHOL ABUSE IN LATER LIFE A MAJOR PART OF THIS CAMPAIGN HAS BEEN THE RISE IN THE STATE MINIMUM AGES FOR BUYING AND CONSUMING ALCOHOLIC BEVERAGES AFTER WORLD WAR II THERE WAS A MOVE TO LOWER THE DRINKING AGE TO 18 FROM 21 IF A MAN WAS ASKED TO RISK HIS LIFE FOR HIS COUNTRY AT AGE 18 THE REASONING RAN HE WAS OLD ENOUGH TO DRINK BEFORE LONG HOWEVER HIGHWAY ACCIDENT STATISTICS CONVINCED MANY PEOPLE THAT THERE WAS SOMETHING WRONG WITH THIS REASONING SO THE FEDERAL GOVERNMENT PUSHED THE STATES INTO RESTORING THE DRINKING AGE TO 21 BY THREATENING TO WITHHOLD PART OF THEIR FEDERAL HIGHWAY FUNDS IF THEY DIDN'T COMPLY ALL STATES OF COURSE COMPLIED BUT ENFORCEMENT HAS BEEN UNEVEN A RECENT CHECK IN MONTGOMERY COUNTY MD A WASHINGTON SUBURB FOUND THAT ONE IN THREE LIQUOR STORES ILLEGALLY SOLD ALCOHOL TO MINORS TOUGHER LAWS ON DRUNKEN DRIVING AND OTHER LEGAL RESTRAINTS ALSO HAVE RUN INTO ENFORCEMENT PROBLEMS THE MOST EFFECTIVE TOOL TO LIMIT ALCOHOL ABUSE MANY ECONOMISTS ARGUE IS PRICE YET HIGHER TAXES HAVE BEEN ALMOST IGNORED AS A DEVICE TO CONTROL ALCOHOL ABUSE FEDERAL TAXES ON BEER AND WINE WERE INCREASED IN 1991 FOR THE FIRST TIME SINCE 1951 THE FEDERAL EXCISE TAX ON DISTILLED SPIRITS ALSO WAS INCREASED IN 1991 FOR ONLY THE SECOND TIME SINCE 1951 THE INCREASES WERE WELL BELOW THOSE RECOMMENDED BY THE BUSH ADMINISTRATION AND MANY PUBLIC HEALTH AUTHORITIES AND FELL FAR SHORT OF OFFSETTING THE EFFECTS OF INFLATION SINCE 1951 SINCE THE ADMINISTRATION HAS BEEN QUIET ABOUT A BOOZE TAX LATELY ONE HAS TO WONDER IF MAYBE THE LIQUOR INDUSTRY HAS A MORE EFFECTIVE PUBLIC RELATIONS ARM THAN THE TOBACCO COMPANIES DO THE TOBACCO INSTITUTE RECENTLY HAS BEEN OVERHAULING ITS LOBBYING ORGANIZATION ELIMINATING ROUGHLY THREE DOZEN JOBS INCLUDING 17 IN WASHINGTON SPOKESMEN DENY THAT THE CUTBACKS HAVE ANYTHING TO DO WITH THE BIG TAX INCREASE BUT SOME TOBACCO FIRMS SURELY AREN'T PLEASED BY THE PROPOSED BOOST IT'S HARD TO BE HAPPY ABOUT ANY TAX INCREASE BUT IF THE ADMINISTRATION WANTS AN INCREASE THAT COULD IMPROVE HEALTH IT SEEMS TO BE MISSING A BET SEE RELATED LETTERS LETTERS TO THE EDITOR TAX WON'T CURE ALCOHOL ABUSE WSJ NOV 23 1993 9310280128 YY93 MM11 9311230065 930924 REGULATORY CHOKEHOLD WHY YOUR CABLE BILL IS SO HIGH BY THOMAS W HAZLETT A YEAR AGO THIS WEEK REP ED MARKEY D MASS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE TOLD HIS COLLEAGUES A VOTE FOR THE CABLE BILL TODAY HAS THE EFFECT OF GIVING A 6 BILLION TAX CUT TO AMERICANS ACROSS THIS COUNTRY THE HOUSE AND SENATE WENT ON TO OVERRIDE A BUSH VETO FOR THE FIRST TIME AND ENACT THE CABLE CONSUMER PROTECTION AND COMPETITION ACT OF 1992 PRESS ACCOUNTS HERALDED CHAMPAGNE AND CAVIAR FOR THE AMERICAN CABLE CONSUMER BUT JUST ONE YEAR LATER THE PARTY'S OVER CABLE CUSTOMERS HAVE DISCOVERED THEIR BILLS STAYING THE SAME OR MORE OUTRAGEOUSLY GOING UP CONSUMER ANGER HAS SPURRED MR MARKEY TO BEGIN HEARINGS TO INVESTIGATE HOW THE CABLE ACT WENT WRONG HE WON'T HAVE TO LOOK FAR THE REREGULATION OF CABLE RATES REVERSING CONGRESS'S 1984 DEREGULATION WENT INTO EFFECT ON SEPT 1 THE FEDERAL COMMUNICATIONS COMMISSION WORKING DILIGENTLY TO REINVENT REGULATION IN THE SPIRIT OF THE 1992 LAW HAS SET VARIOUS BENCHMARK PRICES FOR BASIC CABLE SERVICE THE CLAIM WAS THAT UNDER SUCH GUIDELINES BASIC RATES WOULD DROP BY 10 OR ABOUT 1 BILLION IN REALITY EVEN THAT MODEST FRACTION OF MR MARKEY'S 6 BILLION TAX CUT WILL PROVE ILLUSORY THE SPECIFICS OF THE 1992 CABLE ACT WOULD CONFOUND EVEN REGULAR VIEWERS OF THE LEARNING CHANNEL THE FCC HAS ALREADY HANDED DOWN 22 COMPLICATED RULEMAKINGS PURSUANT TO THE ACT EACH OF WHICH TYPICALLY INVOLVES SEVERAL ROUNDS OF NOTICES AND PUBLIC COMMENT THESE HAVE GENERATED GIGAREAMS OF PAPER ACCORDING TO WASHINGTON COMMUNICATIONS LAWYER NICK ALLARD HE TOOK THE TROUBLE TO WEIGH THE PAPER GENERATED BY THE COMMISSION AND PRIVATE COMMENTERS IN JUST ONE OF THE FCC'S DOZENS OF PROCEEDINGS AND FOUND THE SCALES TOPPING 40 POUNDS WHAT IS THE FRUIT OF ALL THIS LABOR TO MEET THE NEW BENCHMARKS ALMOST ALL CABLE COMPANIES ARE RESHUFFLING LINEUPS AND REPRICING THEIR VARIOUS PACKAGES TO THE CONSTERNATION OF CONSUMERS THIS IS KNOWN AS RETIERING AS CABLE OPERATORS PREDICTABLY RESPOND TO RATE CONTROLS BY CHANGING THE PRODUCT DELIVERED FOR INSTANCE THE PRICE OF BASIC SERVICE CONSISTING ESSENTIALLY OF JUST THE OVERTHEAIR BROADCAST CHANNELS IS OFTEN BEING RAISED WHILE THAT OF HIGHER TIERS INCLUDING BASIC CABLE NETWORKS LIKE CNN AND USA IS BEING LOWERED THE NET RESULT IS USUALLY A WASH EXCEPT FOR THOSE LOWINCOME CONSUMERS WHO CAN ONLY AFFORD LIMITED BASIC SERVICE IF YOU SUBSCRIBE TO CONTINENTAL CABLEVISION IN LOS ANGELES FOR EXAMPLE YOU ARE NO DOUBT ECSTATIC OVER THE NEWS ABOUT THE PRICE RESTRUCTURING IN YOUR AREA THIS IS THE SORT OF CONSUMER PROTECTION ONLY CONGRESS COULD CONCOCT IN ONE AREA THE CABLE ACT DOES INDEED REDUCE RATES BY LIMITING THOSE RIDICULOUS CHARGES CABLE COMPANIES EXTRACT FOR REMOTE CONTROLS CONVERTER BOXES AND ADDITIONAL OUTLETS THE SECOND OR THIRD TV MAY NOW BE HOOKED UP TO BASIC CABLE AT NO MONTHLY CHARGE AND REMOTES AND CONVERTERS GET RENTED AT COST IS THERE A CATCH TAKE A GUESS FIRST ONLY ONETHIRD OF CABLE SUBSCRIBERS MAINLY THE MORE AFFLUENT NOW PAY FOR A SECOND OUTLET SO MOST CUSTOMERS REALIZE NO SAVINGS FOR THOSE WHO NOW WISH TO SIGN UP FOR OUTLETS CABLE COMPANIES ARE ATTACHING COSTBASED INSTALLATION CHARGES WHAT HAD BEEN A FREE HOOKUP NOW ISN'T OR COMPANIES ARE EXPLOITING CERTAIN LOOPHOLES THAT SAY THAT THEY CAN CHARGE FOR ADDITIONAL OUTLETS IF PAY CHANNELS LIKE HBO OR PLAYBOY ARE ON THE ADDITIONAL TV AND MANY SYSTEMS ARE NOW TACKING A MONTHLY MAINTENANCE CHARGE ONTO THEIR BILLS BUT THE MOST POPULAR ENDRUN AROUND THE FCC'S ATTEMPTS AT PRICE CONTROL WILL AGAIN BE RETIERING SYSTEMS ARE EXPERIMENTING WITH VARIOUS COMBINATIONS TO SEE HOW TO MAKE THE NEW REGULATED PACKAGE REVENUENEUTRAL THE FAVORITE PLOY PUTTING NEWER CHEAPER LESSWATCHED CHANNELS ON BASIC TIERS AND SHIFTING POPULAR NETWORKS TO A LA CARTE UNREGULATED STATUS SINCE THE CONTROLS ARE LEVIED ON A PRICEPERCHANNEL BASIS ADDING FOUR FIREPLACE NETWORKS CHANNELS NOBODY WANTS TO WATCH LIKE ONE SHOWING BURNING LOGS 24 HOURS A DAY CAN REDUCE RATES 10 ON A 40CHANNEL BASIC PACKAGE THERE ARE MORE THAN 11000 CABLE SYSTEMS IN AMERICA AND EVERY ONE OF THEM IS READY TO PLAY THIS NICKELANDDIME GAME A PERENNIAL PROBLEM IN ENFORCING PRICE CONTROLS IS THAT THERE ARE SO MANY VARIABLES AND SO FEW BUREAUCRATS THE CABLE INDUSTRY IS EVEN ADVISING LOCAL OFFICIALS NOT TO BOTHER HELPING THE FCC AS A TRADE JOURNAL REPORTED IN MIDAUGUST THE INDUSTRY IS TELLING CITIES THAT THE PROCESS IS COMPLICATED TIMECONSUMING AND EXPENSIVE AND COULD VERY WELL FORCE THEM TO DIP INTO FRANCHISE FEES TO COVER REGULATION COSTS WHEN THE DUST SETTLES OVER THE NEXT FEW WEEKS CABLE COMPANIES DO STAND TO LOSE SOME REVENUE WALL STREET ANALYSTS NOW FORECAST TELECOMMUNICATIONS INC THE LARGEST CABLE OPERATOR IN THE COUNTRY SERVING MORE THAN 20 OF US SUBSCRIBERS WILL SEE REVENUES DROP 4 DUE TO THE REREGULATION A 6 BILLION PRICE CUT FOR THE INDUSTRY AS A WHOLE WOULD HAVE AMOUNTED TO A REVENUE LOSS OF 30 SO THE REALITY OF THE ROLLBACK IS ONESEVENTH OF THE PROMISE AT MOST IN FACT PRICES ARE ONLY ONE SIDE OF THE ISSUE WHAT ABOUT THE OTHERCABLE TV QUALITY BECAUSE THE OPERATOR HAS VIRTUALLY COMPLETE DISCRETION OVER PROGRAMMING THAT 4 PRICE ROLLBACK ONLY NEEDS TO BE MATCHED BY A 4 REDUCTION IN PROGRAM QUALITY TO NULLIFY ANY EFFECTIVE PRICE REDUCTION CABLE FIRMS WERE INCREASING PROGRAM EXPENDITURES BY 11 ANNUALLY UNDER DEREGULATION THE MONEY WENT TO PRODUCE NEW MOVIES SITCOMS DOCUMENTARIES AND TALK SHOWS AND TO START UP NEW NETWORKS SUCH AS COURT TV AND THE CARTOON CHANNEL AS WELL AS TO TIE UP HIGHPROFILE SPORTING EVENTS SUCH AS NFL FOOTBALL NBA BASKETBALL AND MAJOR LEAGUE BASEBALL BY SIMPLY CUTTING BACK ON THE RATE OF INCREASE FOR PROGRAM EXPENDITURES OPERATORS CAN LOWER QUALITY BY 4 BEFORE REGULATORS CAN EVEN FIND THE REMOTE CONTROL CABLE COMPANIES ARE ACTUALLY HOPING THAT NEW TECHNOLOGIES WILL ALLOW THEM TO CIRCUMVENT CONTROLS ALTOGETHER BEFORE THEY ARE PROMPTED TO LOWER PROGRAM QUALITY THE EASY WAY TO DO THAT IS TO UPGRADE SYSTEMS TO HUNDREDS OF CHANNELS WITH SMART INTERACTIVITY CREATING THE OPPORTUNITY FOR NEWUNREGULATEDTIERS OF VIDEO PROGRAMMING AS WELL AS BRANDNEW TELECOM SERVICES SO CABLE REREGULATION AMOUNTS TO NOTHING NOT TRUE THERE IS MUCH SOUND AND FURY AND IT SIGNIFIES VAST QUANTITIES OF BILLABLE HOURS FOR INDUSTRY ATTORNEYS IN THE END THE CABLE INDUSTRY WILL SURVIVE HEALTHY STRONG ARMED WITH LAWYERS AND CHARGING ABOUT THE SAME RATES AT MONOPOLY LEVELS THE GREAT IRONY OF WHAT WAS LABELED THE 1992 CABLE CONSUMER PROTECTION AND COMPETITION ACT IS THAT THE READIEST COMPETITORS TO THE ESTABLISHED CABLE COMPANIES HAVE HAD TO SUE THE FEDERAL GOVERNMENT SINCE THE ACT WAS PASSED FOR THE RIGHT TO COMPETE HEADTOHEAD IN A STUNNING FEDERAL DISTRICT COURT RULING ON AUG 24 THE 1984 CABLE ACT'S MEASURE BARRING TELEPHONE COMPANIES FROM OFFERING COMPETITIVE VIDEO IN THEIR LOCAL SERVICE AREAS WAS OVERTURNED ON FIRST AMENDMENT GROUNDS THE BARRING OF TELCOCABLE COMPETITION WAS SUSPICIOUSLY OVERLOOKED BY THE 1992 ACT WHICH LEFT THE ANTICOMPETITIVE RULE INTACT WHAT EVERYONE KNOWS AND EVEN REP MARKEY CONCEDES IS THAT ONLY MARKETPLACE RIVALRY WILL EFFECTIVELY KEEP PRICES DOWN FOR CONSUMERS IT IS TRULY AMAZING THE WAYS IN WHICH COMPETITION POLICES RAPACIOUS MONOPOLISTS IN FACT WHILE ORDERING A SOCALLED 10 RATE REDUCTION THE FCC HAS DATA SHOWING THAT THE ACTUAL DIFFERENCE BETWEEN THE PRICES CHARGED IN COMPETITIVE CABLE MARKETS AND MONOPOLY ONES IS 27 AND WHILE THE ROLLED CABLE COMPANY WILL FIGURE OUT WAYS TO SIDESTEP ANY ROLLBACK CONSUMERS IN COMPETITIVE COMMUNITIES ACTUALLY GET BETTER SERVICE AND CABLE SYSTEMS THAT ANSWER THEIR TELEPHONES WHEN CONGRESS REREGULATED CABLE TELEVISION LAST YEAR IT WAS WIDELY ACCLAIMED AS A PRUDENT REVERSAL OF THE TIDE OF DEREGULATION THAT SWEPT WASHINGTON IN THE 1970S AND 1980S THAT ERRONEOUS LESSON WOULD CONSTITUTE A SOCIALLY HARMFUL BIT OF TV VIOLENCE WE NOW KNOW THAT THE WORLD IS NOT SO NEAT AS WE ONCE SUPPOSED AND THAT STUFFING DYNAMIC INDUSTRIES INTO CRUDE REGULATORY BOXES IS A FOOL'S RETREAT THE REREGULATION OF CABLE RATES WILL ONE DAY BE KNOWN AS A POLITICALLY INEPT ATTEMPT TO PUT A LID ON MARKET FORCES WITHOUT FREEING THOSE POTENTIAL COMPETITORS THAT ARE WILLING AND ABLE TO MOVE TRANSIENT MONOPOLISTS OUT OF THE CONSUMER'S WAY THE SOONER THE POLICY PROCESS GRASPS THIS INEVITABLE CONCLUSION THE SOONER THE AMERICAN PUBLIC MAY ENJOY ITS 6 BILLION AND A WHOLE LOT MORE SEE RELATED LETTERS LETTERS TO THE EDITOR BREAKING UP CABLE MONOPOLIES WSJ OCT 19 1993 SEE RELATED LETTER LETTERS TO THE EDITOR LET'S BE FORTHCOMING ON CABLE MONOPOLIES WSJ NOV 23 1993 9309240012 9310190109 YY93 MM10 YY93 MM11 9311220193 931122 AMR IS HURT BUT STAYS ALOFT DESPITE STRIKE AMERICAN AIRLINES PARENT REJECTS UNION REQUEST FOR FEDERAL MEDIATION BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL FORT WORTH TEXAS FOUR DAYS INTO A STRIKE BY AMERICAN AIRLINES' FLIGHT ATTENDANTS THE UNION HAS INFLICTED SIGNIFICANT FINANCIAL WOUNDS ON THE AIRLINE BUT HASN'T BEEN ABLE TO SHUT IT DOWN OR COMPEL MANAGEMENT BACK TO THE BARGAINING TABLE THE AMR CORP UNIT NOW APPEARS TO HAVE THE UPPER HAND THE AIRLINE IS ACCELERATING PLANS TO CUT 4000 FLIGHTATTENDANT POSITIONS OR 19 AND STRIKERS WHO RETURN TO WORK WILL BE HIRED ON A SENIORITY BASIS AND AMR SAID IT HAS BEGUN TO TRAIN REPLACEMENT WORKERS IN THE EVENT THE 11DAY WALKOUT CONTINUES PAST NOV 29 WHEN STRIKERS HAD PLEDGED TO RETURN THE UNION YESTERDAY ASKED THE NATIONAL MEDIATION BOARD TO RECOMMEND THAT PRESIDENT CLINTON END THE WALKOUT AND RESOLVE THE CONTRACT DISPUTE THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS CITING THE TURMOIL THAT THE WALKOUT WILL CAUSE DURING THE BUSY THANKSGIVING WEEK ALSO ASKED AMR TO JOIN ITS REQUEST FOR FEDERAL MEDIATION BUT CHAIRMAN ROBERT L CRANDALL QUICKLY REJECTED THE OFFER THE NATIONAL MEDIATION BOARD HAS THE RIGHT TO ASK A PRESIDENT TO INTERVENE BUT THE REQUEST IS CONTINGENT NOT ON THE PARTIES' REQUEST FOR HELP BUT ON THE AGENCY'S JUDGMENT THAT A STRIKE IS CAUSING SIGNIFICANT ECONOMIC DAMAGE THE NMB AN INDEPENDENT AGENCY HAS NOT MADE SUCH A REQUEST IN AN AIRLINE DISPUTE SINCE THE MID1960S AND IT DOES NOT PUBLICLY DISCLOSE ITS RECOMMENDATIONS MR CRANDALL IN HIS FIRST NEWS CONFERENCE SINCE THE STRIKE BEGAN ESTIMATED THAT AMERICAN ONE OF THE NATION'S LARGEST CARRIERS HAD LOSSES OF AT LEAST 10 MILLION A DAY BECAUSE OF THE STRIKE HE SAID LESS THAN HALF OF ALL FLIGHTS WOULD CARRY PASSENGERS THIS WEEK SPECULATION ABOUT WHO WINS AND LOSES IN THE STRIKE IS IDLE EXERCISE MR CRANDALL SAID ADDING THAT CUSTOMERS EMPLOYEES AND THE COMPANY'S BOTTOM LINE HAVE BEEN HURT WITH THE SOLE EXCEPTION OF OUR COMPETITORS THE STRIKE IS A LOSE LOSE AND LOSE PROPOSITION FOR EVERYONE MR CRANDALL'S BITTERNESS WAS EQUALED BY THE VENOM ON PICKET LINES IN FORT WORTH CHICAGO LOS ANGELES AND ELSEWHERE STRIKERS CLAIM THAT SUPPORT FOR THE STRIKE AMONG FLIGHT ATTENDANTS IS GAINING WHICH AMR DISPUTES AND BLAME MR CRANDALL FOR UNDERESTIMATING THEIR RESOLVE TEN YEARS AGO MR CRANDALL LIT A FUSE AND NOW THE KEG IS GOING OFF SAID FORT WORTHBASED FLIGHT ATTENDANT DIANA DUNN REFERRING TO A TWOTIER WAGE SCALE THAT AMERICAN INTRODUCED IN WHICH NEW HIRES WERE PAID SUBSTANTIALLY LESS THAN OTHER ATTENDANTS THE 27YEAROLD SAID SHE JOINED AMERICAN FIVE YEARS AGO AND IS PAID LESS THAN 20000 A YEAR SALARIES RANGE FROM 14000 TO 34000 A YEAR FOR FLIERS THE LAST TWO DAYS REPRESENTED A WEEKEND CALM BEFORE THE THANKSGIVINGWEEK STORM AIR TRAVEL IS TYPICALLY LIGHT ON SATURDAYS AND SUNDAYS SO MOST PASSENGERS WHO WERE BUMPED FROM CANCELED AMERICAN FLIGHTS FOUND PASSAGE ON OTHER CARRIERS NONETHELESS THOUSANDS WERE INCONVENIENCED AND DESPITE EFFORTS TO BETTER COMMUNICATE WITH ITS CUSTOMERS AMERICAN APPEARED TO BE KEEPING MANY PASSENGERS IN THE DARK I'M GOING TO KILL THE AMERICAN AGENT WHO SAID I COULD GET FROM SAN DIEGO TO INDIANAPOLIS SAID AN EXHAUSTED FAY GENTRY ON SATURDAY AS SHE RODE A TRAM AT DALLAS/FORT WORTH INTERNATIONAL AIRPORT HER CONNECTING FLIGHT TO INDIANAPOLIS HAD BEEN CANCELED AS WERE TWO OTHER INDIANAPOLIS FLIGHTS THAT AMERICAN TRIED TO PUT HER ON THAT DAY NOW I'M GOING TO CONTINENTAL SHE SAID IF THEY DON'T COMMIT ME FIRST MR CRANDALL SAID AVAILABILITY OF FLIGHTS WILL VARY BY CITY AT ITS LARGEST HUB IN DALLAS/FORT WORTH FOR EXAMPLE 73 OF THE FLIGHTS WILL BE OPERATIONAL WHEREAS IN CHICAGO ITS SECONDLARGEST HUB ONLY 12 CURRENTLY 36 OF AMERICAN'S SCHEDULED FIGHTS ARE CARRYING PASSENGERS IN HIS NEWS CONFERENCE MR CRANDALL APOLOGIZED TO CUSTOMERS AND TRIED TO MAKE AMENDS FOR AMERICAN PASSENGERS WHOSE FLIGHTS ARE CANCELED BETWEEN NOV 23 AND NOV 29 THE COMPANY WILL REFUND THE TICKET AND GIVE A 100 COUPON FOR ANY AMERICAN FLIGHT IN THE NEXT 12 MONTHS ON FRIDAY DEPARTMENT OF TRANSPORTATION SECRETARY FREDERICO PENA REBUKED AMERICAN FOR POORLY INFORMING PASSENGERS ABOUT FLIGHT STATUS MR CRANDALL BLAMED THE FLIGHT ATTENDANTS BECAUSE ONLY ABOUT ONETHIRD OF THE 21000 ATTENDANTS WORK EACH DAY SEVERAL DAYS PASSED BEFORE THE AIRLINE KNEW HOW MANY ATTENDANTS WERE REPORTING FOR DUTY AND THUS HOW MANY FLIGHTS COULD CARRY PASSENGERS MR CRANDALL SAID THAT THE AIRLINE AND TRAVEL AGENTS HAVE BEGUN CALLING ALL AMERICAN PASSENGERS NOTIFYING THEM OF THEIR FLIGHTS' STATUS WITHIN 24 HOURS OF TAKEOFF MR CRANDALL SAID THE COMPANY IS OFFERING YEARLY 78 PAY INCREASES OVER FOUR YEARS HE CRITICIZED UNION LEADERS FOR NOT LETTING THE RANKANDFILE VOTE ON THE PROPOSAL AND DISMISSED THE NOTION THAT THE COMPANY WAS ASKING FLIGHT ATTENDANTS FOR CONCESSIONS BUT HE ACKNOWLEDGED THAT THE OFFER ASKED EMPLOYEES TO CONTRIBUTE MORE FOR HEALTHCARE BENEFITS ATTENDANTS DON'T CONTRIBUTE TO HEALTH COVERAGE HE SAID THE UNION'S CONTRACT PROPOSAL WOULD ADD 500 MILLION A YEAR IN COSTS ON A SHORTTERM BASIS YOU'RE BETTER OFF GIVING IN TO THE UNION BUT IN THE LONG TERM THE MARKETPLACE IS TELLING US UNLESS OUR COSTS ARE COMPETITIVE OUR COMPANY CANNOT BE SUCCESSFUL HE SAID UNION SPOKESMAN RAY ABERNATHY RIDICULED MR CRANDALL'S COMMENTS HE SAID AMERICAN HAD OFFERED A ONETIME 75 PAY INCREASE THEN A 3 PAY INCREASE FOUR YEARS LATER MR ABERNATHY SAID THE UNION'S PROPOSAL WOULD INCREASE AMR COSTS BY LESS THAN 100 MILLION A YEAR AND THAT THE FLIGHT ATTENDANTS HAD READ AND VOTED AGAINST THE AMERICAN OFFER RIGHT NOW THEY'RE ALSO VOTING WITH THEIR FEET AND 95 OF THE FLIGHT ATTENDANTS ARE HONORING THE STRIKE HE SAID PERHAPS BUT IT APPEARS THAT MR CRANDALL WILL SUCCEED IN IMPOSING HIS CONTRACT FOR ONE THING THE ALLIED PILOTS ASSOCIATION ON FRIDAY DECIDED NOT TO JOIN IN A SYMPATHY STRIKE A PILOTS STRIKE COULD HAVE SHUT THE AIRLINE AND FORCED MR CRANDALL'S HAND THE EFFORT BY THE FLIGHT ATTENDANTS UNION TO BRING IN MR CLINTON EVEN IF SUCCESSFUL WON'T NECESSARILY HELP THE WORKERS IF A PRESIDENTIAL EMERGENCY BOARD WERE CREATED STRIKERS WOULD BE ORDERED BACK TO WORK UNDER THE SAME WAGES BENEFITS AND WORKING CONDITIONS THE BOARD WOULD TAKE 30 DAYS TO REVIEW THE ISSUES AND RECOMMEND A SETTLEMENT IF THE TWO SIDES DID NOT AGREE TO THE SETTLEMENT A 30DAY COOLING OFF PERIOD WOULD FOLLOW IF STILL NO SETTLEMENT WERE REACHED THE COMPANY WOULD BE FREE TO IMPOSE ITS LATEST OFFER AND THE UNION AGAIN WOULD BE FREE TO STRIKE THE PRESIDENT OF THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS DENISE HEDGES COULD NOT BE REACHED YESTERDAY TO DISCUSS UNION STRATEGY 9311220192 931122 HOST MARRIOTT BIDS AGAINST FORTE PLC TO ACQUIRE CIGA BY PAULINE YOSHIHASHI AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL HOST MARRIOTT CORP IS SEEKING TO ACQUIRE THE CIGA SPA HOTEL COMPANY OF ITALY CHALLENGING FORTE PLC'S PLAN TO TAKE CONTROL OF THE LUXURY CHAIN LAST MONTH FORTE PLC THE UNITED KINGDOM'S LARGEST HOTEL GROUP REACHED A PRELIMINARY AGREEMENT WITH CIGA'S BANKERS TO CONTRIBUTE 33 MILLION 487 MILLION AND CERTAIN OF ITS OWN LUXURY HOTELS VALUED AT ABOUT 125 MILLION TO CIGA'S RESTRUCTURING IN RETURN FORTE WOULD TAKE OVER MANAGEMENT OF CIGA'S 35 EUROPEAN HOTELS AND HOLD A 51 INTEREST IN THE RESTRUCTURED COMPANY WE'RE MAKING A COMPETING BID TO THE FORTE BID BECAUSE WE THINK WE CAN BRING MORE VALUE TO THE HOTELS STEPHEN BOLLENBACH HOST MARRIOTT'S PRESIDENT AND CHIEF EXECUTIVE SAID IF SUCCESSFUL HOST MARRIOTT WHICH OWNS HOTELS AIRPORT AND TOLLROADCONCESSION SERVICES AND SENIORLIVING CENTERS WOULD OWN THE PROPERTIES AND ITS SISTER COMPANY MARRIOTT INTERNATIONAL INC WOULD MANAGE THEM CIGA EXPANDED QUICKLY IN THE LATE 1980S UNDER THE AGA KHAN'S CONTROL GROWING TO INCLUDE SUCH GEMS AS THE PALACE HOTEL IN MADRID THE HOTEL MEURICE IN PARIS AND THE HOTEL DANIELI IN VENICE BUT FACED WITH HEAVY DEBT AND WEAK DEMAND FOR 400ANIGHT ROOMS CIGA DEFAULTED ON LOANS EARLIER THIS YEAR THE AGA KHAN BILLIONAIRE SPIRITUAL LEADER OF THE WORLD'S ISMAILIAN MUSLIMS HAS SAID HE WILL NOT INVEST ANY MORE OF HIS MONEY IN THE CHAIN MR BOLLENBACH DECLINED TO COMMENT ON A REPORT IN THE ITALIAN NEWSPAPER MILANO FINANZA THAT HOST'S LETTER VALUED CIGA'S ASSETS AT ABOUT 482 MILLION OFFICIALS AT FORTE AND MEDIOBANCA SPA THE BANK OVERSEEING CIGA'S RESTRUCTURING WEREN'T REACHABLE FOR COMMENT JOHN ROHS AN ANALYST AT WERTHEIM SCHRODER & CO SAID THE POSH CHAIN WOULD POSITION HOST MARRIOTT WELL IN THE BURGEONING INTERNATIONAL MARKET BUT WOULD REQUIRE INNOVATIVE FINANCING ON THE PART OF HIGHLY LEVERAGED HOST MR BOLLENBACH SAID HOST HAS ACCESS TO ADEQUATE FINANCING FOR SUCH A DEAL 9311220191 931122 BUSINESS BRIEF XEROX IS TALKING WITH FUND AMERICAN ABOUT SALE OF TALEGEN INSURANCE UNIT FUND AMERICAN ENTERPRISES HOLDINGS INC IS NEGOTIATING WITH XEROX CORP ABOUT A POSSIBLE PURCHASE OF ALL OR PART OF XEROX'S TALEGEN HOLDINGS INC INSURANCE BUSINESS FUND AMERICAN A FINANCIAL SERVICES HOLDING COMPANY BASED IN NORWICH VT SAID THE SIZE OF THE TRANSACTION COULD RANGE FROM LESS THAN 100 MILLION TO MORE THAN 2 BILLION AND INCLUDE SOME OR ALL OF TALEGEN'S SEVEN OPERATING COMPANIES TALEGEN FORMERLY CALLED CRUM & FORSTER IS AMONG THE 20 LARGEST PROPERTYCASUALTY GROUPS IN THE US WITH 25 BILLION IN NET PREMIUMS IN 1993 AND A SURPLUS OF 2 BILLION XEROX SAID IN STAMFORD CONN A XEROX SPOKESWOMAN CONFIRMED THE DISCUSSIONS WITH FUND AMERICAN AS WELL AS WITH OTHER POTENTIAL INVESTORS ABOUT THE SALE OF ITS UNIT SHE SAID THAT THE EXTENT OF FUND AMERICAN'S PARTICIPATION IN ANY TRANSACTION HASN'T BEEN DETERMINED TERRY BAXTER A SPOKESMAN FOR FUND AMERICAN SAID THE CONCERN CURRENTLY HAS NO INSURANCE HOLDINGS FUND AMERICAN IS THE HOLDING COMPANY FOR SOURCE ONE MORTGAGE BANKING CO IN FARMINGTON HILLS MICH FUND AMERICAN CHAIRMAN JOHN J BYRNE ENGINEERED THE TURNAROUND OF GEICO CORP IN THE EARLY 1980S AND LATER RAN FIREMAN'S FUND INSURANCE CO MR BAXTER SAID FUND AMERICAN MIGHT FINANCE THE TALEGEN ACQUISITION IF APPROVED BY ISSUING STOCK OR JOINING WITH PARTNERS AT SEPT 30 FUND AMERICAN HAD 96 MILLION COMMON SHARES OUTSTANDING UNDER A CURRENT SHARE REPURCHASE PROGRAM FUND AMERICAN IS AUTHORIZED TO REPURCHASE MORE THAN TWO MILLION SHARES IN OPEN MARKET OR PRIVATE TRANSACTIONS FOR THE NINE MONTHS ENDED SEPT 30 FUND AMERICAN HAD NET INCOME OF 1608 MILLION OR 1477 A SHARE INCLUDING AN UNREALIZED INVESTMENT GAIN OF 1845 MILLION XEROX ANNOUNCED IN JANUARY ITS PLAN TO WITHDRAW FROM THE FINANCIAL SERVICES BUSINESS TO PREPARE FOR A POSSIBLE SALE IT REORGANIZED TALEGEN INTO SEVEN BUSINESS UNITS SPECIALIZING IN DIFFERENT TYPES OF INSURANCE COVERAGE 9311220190 931122 AROUND THANKSGIVING THIS JUDGE TALKS TURKEY TO PARKING SCOFFLAWS BY CARMELLA M PADILLA SPECIAL TO THE WALL STREET JOURNAL SANTA FE NM AS THANKSGIVING APPROACHES SCOFFLAWS HERE REALLY HAVE SOMETHING FOR WHICH TO GIVE THANKS MUNICIPAL COURT JUDGE TOM FIORINA AS HE HAS DONE FOR THE PAST 10 YEARS IS REDUCING THE FINES OF PARKING SCOFFLAWS THIS HOLIDAY SEASON IN EXCHANGE FOR TURKEYS POTATOES AND PUMPKIN PIES FOR THE POOR IN THE PAST HE HAS REDUCED FINES RANGING FROM 3 TO 10000 FOR THOSE DONATING THANKSGIVING FARE WHO COULD OBJECT TO THAT HOW ABOUT CITY PARKING OFFICIALS FOR A DECADE THEY HAVE TRIED TO GET THE JUDGE TO END HIS ANNUAL CRUSADE CONTENDING THAT IT COSTS THE CITY 275000 A YEAR AND UNDERMINES ENFORCEMENT NOW THEY SAY THEY'VE HAD ENOUGH AND ARE URGING LEGAL STEPS TO CURB THE JUDGE'S LARGESSE WE'VE GOT PEOPLE TEARING UP TICKETS IN OFFICERS' FACES SAYING THEY'LL JUST TAKE A BIRD TO THE JUDGE SAYS MIKE P LUJAN DIRECTOR OF THE PARKING DIVISION I HAVE NOTHING AGAINST CHARITY BUT I THINK THE JUDGE PROBABLY HAS MORE IMPORTANT THINGS TO DO THAN DEAL WITH A BUNCH OF TURKEYS FOR HIS PART JUDGE FIORINA A LONGTIME CRITIC OF THE PARKING DIVISION HAS BEEN PUSHING UNSUCCESSFULLY FOR MORE PARKING IN THE CONGESTED DOWNTOWN AREA WHERE MOST OFFENDERS WORK HE HAS ALSO CALLED FOR AN END TO THE DIVISION'S POLICIES OF DOUBLING THEN TRIPLING UNPAID FINES AND POSTING TICKETS ON THE SAME CAR EVERY HOUR ALL I'M DOING IS CREATING A LITTLE JUSTICE FOR THE WORKING MAN HE SAYS THE JUDGE INSISTS THAT HE ISN'T PROMOTING LAWLESSNESS HE HAS EVEN THREATENED SOME PARKING VIOLATORS WITH JAIL TIME FACED WITH THE PROSPECT OF TWO DAYS IN THE SLAMMER FOR EXAMPLE MARION GILLCREST AGREED TO DRUM UP SUPPORT FOR THE JUDGE'S TURKEY DRIVE THROUGH LOCAL NEWSPAPER ADS AND LETTERS TO THE EDITOR IN RETURN THE JUDGE REDUCED THE DOWNTOWNRESTAURANT COOK'S 3300 IN CITATIONS TO 350 THE JUDGE CREDITS INCREASED MEDIA SUPPORT FOR GETTING ABOUT 700 HABITUAL PARKING VIOLATORS TO COME CLEAN SO FAR THIS YEAR BUT THE TURKEY PROGRAM STILL STICKS IN MR LUJAN'S CRAW TO CIRCUMVENT THE JUDGE'S EFFORTS HE SEEKS A MUNICIPAL ORDINANCE THAT WOULD TOUGHEN UP TOWING REGULATIONS AND ALLOW PARKING OFFICERS TO DISABLE VEHICLES AND HE IS PUSHING FOR A STATE LAW THAT WOULD DECRIMINALIZE PARKING VIOLATIONS AND ESTABLISH DEPARTMENTAL ADJUDICATION IT'S NOT UP TO ME TO TELL THE JUDGE HOW TO RUN HIS COURT SAYS MR LUJAN BUT WE CAN REQUEST A CHANGE OF VENUE 9311220189 931122 OPEC MINISTERS GATHER TO HALT FALL OF OIL PRICES DESPITE GLUTTED MARKET BY BHUSHAN BAHREE AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL VIENNA THEY'RE AT IT AGAIN OPEC'S OIL MINISTERS BAFFLED BY OIL MARKET BEHAVIOR BEGAN GATHERING HERE YESTERDAY FOR YET ANOTHER ATTEMPT AT STOPPING THE FALL OF PETROLEUM PRICES THE FIRST MINISTER TO ARRIVE ABDULLAH BIN HAMAD ALATTIYAH OF QATAR WOULD ONLY SAY THAT HE IS OPTIMISTIC THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL FIND A WAY TO HALT THE SLIDE WHEN THE MINISTERS OPEN THEIR MEETING HERE TOMORROW MR ALATTIYAH IS EXPECTED TO BE NAMED OPEC'S PRESIDENT REPLACING JEAN PING OF GABON AND MR ALATTIYAH'S BREVITY UNDERSCORES NOT ONLY THE SERIOUSNESS OF THE DROP IN PRICES NOW AT THREEYEAR LOWS BUT ALSO OPEC'S APPARENT LACK OF ANY TACTICS AT THE MOMENT TO REVERSE THE OIL MARKET'S BEARISH BIAS WORLD OIL PRICES WERE MOSTLY LOWER AGAIN FRIDAY ON THE NEW YORK MERCANTILE EXCHANGE FRIDAY CRUDE OIL FOR JANUARY DELIVERY SETTLED AT 1706 A BARREL DOWN FOUR CENTS PRICES FOR NORTH SEA CRUDES WERE GENERALLY 10 CENTS LOWER ONLY TWO MONTHS AGO AT THEIR SEPTEMBER MEETING THE MINISTERS HAD REACHED A WIDELY HAILED AGREEMENT TO LIMIT PRODUCTION TO 245 MILLION BARRELS A DAY FOR SIX MONTHS THAT BOOSTED OIL PRICES BUT ONLY BRIEFLY EVEN THOUGH MOST OF THE 12 OPEC NATIONS ADHERED TO THE NEW OUTPUT RESTRAINTS THEY CLEARLY CONTINUED TO PRODUCE MORE THAN THE MARKET COULD ABSORB OIL ECONOMISTS INCLUDING THOSE IN OPEC HAVE SINCE ADMITTED TO OVERESTIMATING THE WORLD'S APPETITE FOR OIL ALSO MORE OIL THAN EXPECTED HAS POURED OUT OF SUCH NONOPEC AREAS AS THE FORMER SOVIET UNION DESPITE ITS ECONOMIC AND POLITICAL CHAOS AND THE NORTH SEA ANALYSTS MAINTAIN OPEC COULD PROP UP PRICES FOR A LONGER TERM THIS TIME IF THEY CUT THEIR OWN OUTPUT DEEPLY ENOUGH BY 500000 TO ONE MILLION BARRELS A DAY IF THEY DO NOTHING YOU ARE GOING TO SEE PRICES GOING DOWN VERY QUICKLY SAID CYRUS TAHMASSEBI CHIEF ECONOMIST OF ASHLAND OIL INC THE PROBLEM IS THAT OPEC CANNOT EASILY DO MORE THAN IT DID IN SEPTEMBER HERE'S WHY THE EXPORTERS ALL ARE IN DESPERATE NEED OF CASH AND DESPITE THEIR TOGETHERNESS IN OPEC THEY COMPETE WITH EACH OTHER IN THE MARKETPLACE WHAT'S MORE FOR SOME OF THEM NOTABLY IN THE MIDDLE EAST POLITICS OFTEN CAN TRANSCEND EVEN ECONOMICS IN FACT FOR THREE OF OPEC'S LEADING AND FOUNDING MEMBERS MORE THAN THE PRICE OF OIL IS AT STAKE AT THIS MEETING THAT'S BECAUSE AN UNUSUAL ALLIANCE OF THE HEADS OF STATE OF IRAN KUWAIT AND SAUDI ARABIA FACILITATED THE SEPTEMBER AGREEMENT THEY MAY BE LESS INCLINED TO BE SO OPENLY INVOLVED AGAIN AFTER THE FAILURE OF THE SEPTEMBER AGREEMENT TO PROP UP PRICES THAT CAN ONLY MAKE IT HARDER FOR THE MINISTERS TO AGREE TO A NEW ROUND OF OUTPUT CUTS ANTICIPATING THIS OPEC ALREADY HAS BEGUN A DRIVE TO GET OTHER OIL PRODUCERS THOSE THAT AREN'T MEMBERS TO TRIM OUTPUT AND HELP SHORE UP PRICES OMAN WHICH JUST RECENTLY RAISED ITS PRODUCTION BY 50000 BARRELS A DAY TO 800000 DISCLOSED YESTERDAY THAT'S ITS OIL MINISTERS HAD RECEIVED A LETTER FROM OPEC SECRETARYGENERAL SUBROTO ASKING IT TO COORDINATE A REDUCTION IN NONOPEC OIL SUPPLIES OMAN WHICH ISN'T AN OPEC MEMBER HAS BEEN INSTRUMENTAL IN GETTING TOGETHER A LOOSELY KNIT GROUP OF OIL EXPORTERS KNOWN AS INDEPENDENT PETROLEUM EXPORTING COUNTRIES OR IPEC SEVERAL OPEC OIL MINISTERS OVER THE WEEKEND URGED THAT IPEC SHARE THE BURDEN OF REDUCING THE OVERSUPPLY OF OIL OPEC HAS CURBED ITS PRODUCTION IN THE PAST TWO MONTHS HOWEVER THERE IS AN OVERSUPPLY BY NONOPEC PRODUCERS AND VERY HIGH INVENTORIES ACCORDING TO ALIRIO PARRA VENEZUELA'S OIL MINISTER WHAT OF THE THREE COUNTRIES THAT ENGINEERED LAST SEPTEMBER'S OUTPUT PACT IRAN'S OIL MINISTER GHOLAMREZA AGHAZADEH HAS FLOATED THE NOTION OF LOWERING OPEC'S OUTPUT CEILING KUWAITI OIL MINISTER ALI AHMAD ALBAGHLI HAS SUGGESTED THAT BOTH OPEC AND OTHER EXPORTERS VOLUNTARILY REDUCE OUTPUT SAUDI ARABIA'S HISHAM NAZER HASN'T SHOWN HIS HAND YET MUCH WILL DEPEND ON SAUDI ARABIA SINCE IT ACCOUNTS FOR ABOUT ONETHIRD OF OPEC'S OUTPUT 9311220188 931122 LETTERS TO THE EDITOR BLACK DAYS FOR THE BLUE HELMETS COL CHARLIE A BECKWITH'S NOV 1 EDITORIAL PAGE ESSAY SOMALIA'S NEEDLESS DEATHS EXPOSES THE GRAVE LIMITATIONS OF US OPERATIONS SUBSUMED TO UN COMMAND AND TO CIVILIAN MICROMANAGEMENT HE SUGGESTS THAT IF THE US IS TO ACT AS WORLD POLICEMAN IT NEEDS TO TRAIN A MULTINATIONAL FORCE FOR THAT PURPOSE DESPITE THE DREAMS OF MULTILATERALISTS LIKE ARTHUR SCHLESINGER JR EDITORIAL PAGE OCT 27 WHO PROMOTE A UN STANDING ARMY PEACEKEEPERS LIKELY WILL CONTINUE TO BE DRAWN ON AN AD HOC AND VOLUNTARY BASIS FROM A POOL OF DISPARATE MILITARY FORCES FROM 184 UN MEMBER NATIONS WITH DIFFERENT PROFESSIONAL SKILLS AND LANGUAGES THE PROSPECT OF ACHIEVING EVEN A LIMITED DEGREE OF INTEROPERABILITY WITH SUCH A DIVERSE ARRAY OF MILITARIES OR ACHIEVING COL BECKWITH'S SUGGESTION THAT UN FORCES MEET US STANDARDS OF READINESS AND EXPERTISE IS REMOTE AND WOULD BE PROHIBITIVELY EXPENSIVE IT IS IMPOSSIBLE TO SEPARATE MILITARIES FROM THE POLITICS OF THEIR COUNTRIES WHICH RISKS PEACEKEEPING COMPONENTS IN DISPUTE WITH A UN MISSION'S TACTICS OR OBJECTIVES AS EVIDENCED IN SOMALIA BY ITALY'S OPPOSITION TO THE MANHUNT FOR GEN AIDID UNLESS UN MEMBER NATIONS ARE WILLING TO ABANDON THEIR SOVEREIGNTY AND FOREIGN POLICIES BASED ON RESPECTIVE NATIONAL INTERESTS THIS PROBLEM CANNOT BE REMEDIED MOREOVER AS LONG AS THE UN IS DOMINATED BY UNDEMOCRATIC STATES THE US SHOULD NOT SUPPORT ANY EXPANSION OF UN POWER REGRETTABLY FOR AMERICA US SOLDIERS WERE REGARDED BY SOMALIS AS THE ENFORCEMENT ARM OF UN SECRETARYGENERAL BOUTROSGHALI AND THE UN'S PARTISAN AND IMPERIALISTIC AGENDA IN SOMALIA THE US IN A BIZARRE WAY SHOULD BE THANKFUL TO GEN AIDID FOR HANDING THE UN A MAJOR SETBACK IN SOMALIA US SOLDIERS MIGHT HAVE HAD TO PERISH IN SOMALIA IN ORDER NOT TO SUFFER MORE SENSELESS LOSS OF AMERICAN LIVES IN HAITI LIBERIA OR THE FORMER SOVIET GEORGIA ALL CONTROVERSIAL UN PEACEKEEPING MISSIONS APPROVED BY PRESIDENT CLINTON'S AMBASSADOR TO THE UN MR BOUTROSGHALI'S RADICAL BID TO RESHAPE TRADITIONAL PEACEKEEPING INTO MORE ROBUST PEACE ENFORCEMENT WHICH MEANS INSERTING BLUE HELMETS IN THE MIDST OF THIRD WORLD CIVIL AND ETHNIC WARS WAS AN ILLCONCEIVED IDEA AND WAS DESTINED FOR FAILURE COL BECKWITH'S DEFENSE OF THE ARMY RANGER/DELTA FORCE'S COMBAT PERFORMANCE IN MOGADISHU IS WHAT ANY RIFLEMAN WOULD WISH WHEN UNDER FIRE FROM THE MEDIA AND PENTAGON SECONDGUESSERS TO THE REAR HE HAS ADDED STRONGLY TO THE DEBATE OVER THE GROUND RULES FOR US TROOP COMMITMENTS TO UN OPERATIONS AND THE EFFECTIVENESS OF THE CLINTON ADMINISTRATION'S CONDUCT OF FOREIGN POLICY HOWEVER HIS COMMENTS MAY ALSO HAVE THE UNINTENDED CONSEQUENCE OF REOPENING ANOTHER MATTER HOW FAR ACTIVEDUTY AND RETIRED OFFICERS CAN GO IN CRITICISM WITHOUT RUNNING AFOUL OF CODE 88 OF THE UNIFORM CODE OF MILITARY JUSTICE WHICH BARS SUCH OFFICERS FROM USING CONTEMPTUOUS WORDS AGAINST SPECIFIC CIVILIAN LEADERS INCLUDING THE PRESIDENT AND HIS SECRETARY OF DEFENSE THE ISSUE IS WORTH THINKING ABOUT IN CONSIDERING COL BECKWITH'S OBSERVATION ABOUT THE POOR PERFORMANCE ON THE PART OF DEFENSE SECRETARY LES ASPIN AND HIS JUDGMENT THAT THE BLOOD OF THOSE RANGER AND DELTA FORCE PERSONNEL WHO DIED IN THE STREETS OF MOGADISHU PROTECTING A COMRADE THEY HAD THE UTMOST TRUST IN AND RESPECT FOR IS ON THE HANDS OF THIS ADMINISTRATION ON THE DAY BEFORE COL BECKWITH'S ESSAY RAN MAJ GEN EDWIN A WALKER US ARMY RESIGNED DIED IN DALLAS AT AGE 83 IN 1961 GEN WALKER WAS FORMALLY REPRIMANDED FOR AMONG OTHER ACTIONS MAKING DEROGATORY PUBLIC STATEMENTS ABOUT PROMINENT AMERICANS FOLLOWING WHICH HE RESIGNED HIS COMMISSION DURING THE VIETNAM WAR AT LEAST ONE PROTESTING ARMY OFFICER WAS COURT MARTIALED UNDER UCMJ'S ARTICLE 88 OVER HIS DEMONSTRATION PLACARD'S COMMENTS ABOUT LYNDON JOHNSON HIS COMMANDER IN CHIEF AS AN AIR FORCE STAFF SERGEANT WHO SERVED DURING GEN WALKER'S ERA I OFTEN HAD THOUGHTS SOMEWHAT LIKE THOSE COL BECKWITH EXPRESSED I HOPE HE HAS NOT STRAYED PUBLICLY OVER THE LINE SET FORTH SOMEWHAT VAGUELY IN ARTICLE 88 WHICH AIR FORCE MAJ GEN HAROLD N CAMPBELL EVIDENTLY CROSSED EARLIER THIS YEAR IN RIDICULING PRESIDENT CLINTON WITH DISASTROUS PUBLICITY AND CAREER CONSEQUENCES TO DISCHARGE EFFECTIVELY HIS CONSTITUTIONAL ROLE AS COMMANDER IN CHIEF THE PRESIDENT MUST HAVE THE RESPECT AS WELL AS THE OBEDIENCE OF HIS TROOPS AND THEIR LEADERS HOW TO SUSTAIN BOTH WHEN ONE'S REPUTATION IS ERODING IS A CRUCIAL AND DIFFICULT TASK THAT NEEDS ADDRESSING CONGRATULATIONS TO COL BECKWITH FOR TELLING IT LIKE IT IS HIS COMMENTS ON DEFENSE SECRETARY ASPIN ARE WELLFOUNDED HE REALLY SHOULD DEPART AND COLIN POWELL SHOULD REPLACE HIM AS A MILITARY PROFESSIONAL I READ WITH CRITICAL INTEREST COL CHARLIE BECKWITH'S EULOGY FOR THE ARMY RANGERS KILLED UNDER FIRE IN SOMALIA IN HIS DAY COL BECKWITH WAS A SOLDIER'S SOLDIER AND HE WRITES FROM THE HEART OF A FORMER COMMANDER WHO GENUINELY CARED FOR THE SOLDIERS' LIVES THAT WERE ENTRUSTED TO HIM THAT SAID I CRITICIZE HIM FOR ENDORSING WHAT I CALL THE DROWNING PERSON SYNDROME IT IS GENERALLY AGREED AMONG PROFESSIONAL LIFESAVING PERSONNEL THAT IF THE SITUATION IS HOPELESS THERE IS NO POINT IN LOSING ANOTHER LIFE ATTEMPTING A RESCUE IN SOMALIA THE STRONG EMOTIONAL BOND THE RANGERS FELT TO THE DEAD PILOT WAS ALL TOO REAL NO AMERICAN SOLDIER EVER WANTS TO LEAVE A COMRADE BEHIND LIVING OR DEAD BUT THE TERRIBLE TRUTH IS THAT 18 MORE SOLDIERS DIED TRYING TO BRING BACK A DEAD MAN HEROIC YES FUTILE ABSOLUTELY POTENTIAL CRITICISM BY PEERS AND SUBORDINATES NOTWITHSTANDING THE OFFICER COMMANDING THE OPERATION WAS RESPONSIBLE FOR PROTECTING THE LIVES OF THOSE STILL LIVING AND SHOULD HAVE ORDERED THEM OUT OF THE FIGHT WHEN THE SITUATION BECAME HOPELESS YES THE RANGERS PERFORMED THEIR DUTIES IN AN OUTSTANDING MILITARY MANNER ACHIEVING A BETTER THAN 10TO1 RATIO BUT THAT DOES NOT CHANGE THE FACT THAT 18 AMERICAN LIVES WERE WASTED TRYING TO RESCUE A MAN ALREADY DEAD 9311220187 931122 FASTER ARBITRATION SETTLEMENTS SOUGHT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FACING A BULGING ARBITRATION CASELOAD PROPOSED A RULE AIMED AT PRODDING QUICK SETTLEMENTS IN DISPUTES BETWEEN INVESTORS AND BROKERAGE FIRMS UNDER THE PROPOSED RULE AN INVESTOR WHO SPURNS A SETTLEMENT OFFER BY A BROKERAGE FIRM IN AN ARBITRATION CASE COULD BE FORCED TO PAY THE FIRM'S COSTS INCLUDING ATTORNEYS' FEES AND EXPERTWITNESS CHARGES IF A SUBSEQUENT AWARD BY ARBITRATORS IS LESS THAN THE SETTLEMENT OFFER CURRENTLY EACH SIDE TYPICALLY PAYS ITS OWN COSTS THE PROPOSED NASD RULE WOULD MARK THE MOST SIGNIFICANT SHIFT IN RESOLVING INVESTOR DISPUTES SINCE THE 1987 SUPREME COURT DECISION THAT ALLOWED BROKERAGE FIRMS TO COMPEL INVESTORS TO TAKE CASES TO ARBITRATION THE PROPOSAL COMES AMID AN ARBITRATION AVALANCHE INVESTORS FILED ROUGHLY 5200 NASD CASES AGAINST BROKERS AND SECURITIES FIRMS THIS YEAR A NEARLY FOURFOLD JUMP FROM 1985 THE NASD HANDLES ABOUT 80 OF ALL SECURITIESARBITRATION CASES THIS WOULD BE A DRASTIC DRASTIC CHANGE TO ARBITRATION SAYS SAMANTHA RABIN OF THE SECURITIES ARBITRATION COMMENTATOR A MAPLEWOOD NJ NEWSLETTER IT WOULD ADD A WHOLE NEW LAYER OF GAMESMANSHIP TO THE PROCESS THE NASD A SELFREGULATORY GROUP SAYS IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT THE RULE WOULD ENCOURAGE ALL PARTIES TO EVALUATE AND RESOLVE CASES IN A TIMELY AND REASONABLE MANNER THE PROPOSED RULE WHICH THE SEC IS HOLDING OPEN FOR PUBLIC COMMENT BEFORE ALLOWING IT TO BECOME FINAL WOULD APPLY TO DISPUTES OF MORE THAN 250000 ABOUT ONETHIRD OF ALL CASES AND BE REEXAMINED IN TWO YEARS BUT THE NASD MOVE FACES FIERCE RESISTANCE AMONG PLAINTIFFS' LAWYERS THEY SAY INVESTORS WOULD BE FORCED INTO EARLY SETTLEMENTS FOR FEAR OF HAVING TO SHELL OUT SUBSTANTIAL COSTS LATER EVEN IF THEY END UP WINNING THE CASE IT WOULD ENCOURAGE SETTLEMENTS IN MUCH THE SAME WAY THAT A BLACKJACK ADMINISTERED TO A SUSPECT'S HEAD DURING INTERROGATION WOULD UNDOUBTEDLY ENCOURAGE CONFESSIONS SAYS JONATHAN H COLMAN A PLAINTIFF ATTORNEY IN PAOLI PA IN A COMMENT LETTER TO THE SEC THE PROBLEM IS THAT THE SETTLEMENTS LIKE THE CONFESSIONS WOULD BE THE PRODUCT OF COERCION HE SAYS THE SECURITIES INDUSTRY HAS LONG PRESSED ARBITRATION ON ITS CUSTOMERS WHEN OPENING A BROKERAGE ACCOUNT MANY INVESTORS SIGN A STANDARD AGREEMENT BINDING THEM TO ACCEPT ARBITRATION RATHER THAN RESORTING TO A LAWSUIT IN CASE OF A DISPUTE WITH THEIR BROKER THE SECURITIESARBITRATION PROCESS LIKE THE BROADER SYSTEM OF AMERICAN LAW LARGELY HAD TURNED ITS BACK ON THE SOCALLED ENGLISH RULE IN WHICH THE LOSING SIDE HAS TO PAY ATTORNEYS' FEES OF THE WINNER INVESTORS CURRENTLY SETTLE ABOUT 45 OF THE ARBITRATION CASES FILED AGAINST BROKERS AND WIN ABOUT HALF THE CASES THAT GO TO HEARING THOUGH THE AWARDS OFTEN ARE FAR LESS THAN THE DAMAGES SOUGHT SOME LAWYERS SAY THE RULE WOULD LESSEN THE CHANCES THAT INVESTORS RECOVER THEIR LOSSES THE PROPOSAL WOULD FURTHER STACK THE DECK AGAINST THE DEFRAUDED CUSTOMER WHEN HE ATTEMPTS TO OBTAIN REDRESS THROUGH WHAT IS NOW THE COMPULSORY ARBITRATION PROCEDURE CHARGES THEODORE G EPPENSTEIN A NEW YORK LAWYER WHO LOST THE 1987 SUPREME COURT CASE COMPELLING SECURITIES ARBITRATION HERE'S HOW THE RULE WOULD WORK WITHIN 60 DAYS AFTER A PARTY ANSWERS AN ARBITRATION CLAIM BUT MORE THAN 15 DAYS BEFORE A HEARING BEGINS EITHER SIDE MAY PROPOSE A SETTLEMENT CALLED AN OFFER OF AWARD THE OFFER WOULD BE FILED WITH THE ARBITRATION DIRECTOR IN A SEALED ENVELOPE MARKED CONFIDENTIAL IF THE SETTLEMENT IS SHUNNED BOTH PARTIES WOULD BE BARRED FROM DISCLOSING ITS TERMS TO THE ARBITRATION PANEL OR OTHERWISE USE ANY OFFER OF AWARD TO PREJUDICE OR TAINT THE ARBITRATION PROCEEDING THE NASD SAYS SOME LAWYERS SAY THERE ISN'T ENOUGH TIME TO PROPERLY ASSESS A CASE BEFORE THE SETTLEMENT OFFER MUST BE MADE YOU WOULD BE ENGAGING IN CRITICAL SETTLEMENT DISCUSSION WITHOUT ALL THE FACTS SAYS DAVID ROBBINS A NEW YORK LAWYER THAT'S A MAJOR PROBLEM THE RULE CHANGE THEORETICALLY COULD WORK AGAINST THE BROKERAGE BUSINESS TOO FOR INSTANCE A BROKERAGE FIRM THAT TURNS DOWN A SETTLEMENT OFFER BY AN INVESTOR COULD BE FORCED TO PAY AN INVESTOR'S COSTS IN A CASE IF A SUBSEQUENT AWARD IS MORE THAN THE OFFER AND ARBITRATORS ARE LIKELY TO HAVE SOME DISCRETION IN ASSESSING WHO PAYS THE FEES UNDER THE PROPOSED RULE THEY LIKELY WOULD BE RELUCTANT TO HIT SMALL INVESTORS WITH BIG FEES SAYS MS RABIN OF THE SECURITIES ARBITRATION COMMENTATOR BUT A DEEPPOCKETED BROKERAGE FIRM OBVIOUSLY CAN ABSORB THE COSTS OF A CASE FAR MORE EASILY THAN CAN A SMALL INVESTOR AN AMOUNT THAT WOULD BE A MERE PINPRICK TO BROKERAGE FIRMS WOULD BE FINANCIALLY DEVASTATING TO MOST INVESTORS MR COLMAN THE PAOLI LAWYER SAID IN HIS SEC COMMENT LETTER FOR INSTANCE MR COLMAN SAYS SHEARSON LEHMAN BROTHERS INC NOW PRIMERICA CORP'S SMITH BARNEY SHEARSON UNIT OFFERED 5000 AND THEN 15000 TO SETTLE ALLEGATIONS BY TWO INVESTORS THAT A BROKER HAD MADE UNSUITABLE TRADES THE INVESTORS SPURNED THE SETTLEMENT OFFER AN ARBITRATION PANEL LATER AWARDED THE INVESTORS 95000 UNDER THE RULE THE INVESTORS PROBABLY WOULD HAVE BEEN INTIMIDATED INTO ACCEPTING THE 15000 OFFER MR COLMAN SAYS SHEARSON'S ARBITRATION FEES WERE NEARLY 50000 HE ADDS THE PROPOSED RULE ALSO COULD DISSUADE INVESTORS FROM AGGRESSIVELY SEEKING PUNITIVE DAMAGES SOME LAWYERS ARGUE PUNITIVE DAMAGES WHICH GENERALLY ARE AWARDED TO PUNISH AND DETER A DEFENDANT FOUND TO HAVE ACTED RECKLESSLY OR MALICIOUSLY ARE APPLIED IN ADDITION TO COMPENSATORY DAMAGES WHICH COVER THE INJURY OR LOSS PUNITIVEDAMAGE AWARDS AGAINST BROKERAGE FIRMS HAVE SURGED IN RECENT YEARS THOUGH THEY STILL ARE GRANTED IN A SMALL MINORITY OF CASES MR EPPENSTEIN THE NEW YORK LAWYER SAYS THE PROPOSAL APPEARS TO VIOLATE THE BASIC CONSTITUTIONAL GUARANTEES OF DUE PROCESS THAT PUBLIC CUSTOMERS AUTOMATICALLY WOULD BE AFFORDED IN A COURT OF LAW IN ITS SEC FILING THE NASD SAID IT DID NOT BELIEVE THAT THE PROPOSED RULE CHANGE WILL RESULT IN ANY BURDEN ON COMPETITION 9311220186 931122 TOP 5 BUILDERS IN JAPAN FACE INCREASING WOES BRIBERY SCANDAL IS AFFECTING INDUSTRY ALREADY HURT BY STAGNANT ECONOMY SPECIAL TO THE WALL STREET JOURNAL TOKYO OVERCOMING AN EVERWIDENING BRIBERY SCANDAL IS ONLY ONE OF THE CHALLENGES THAT JAPAN'S TOP FIVE GENERAL CONTRACTORS WILL FACE OVER THE NEXT COUPLE OF YEARS INDUSTRY OFFICIALS SAY THE STAGNANT JAPANESE ECONOMY IS SLOWING DEMAND FOR OFFICE SPACE AND EXACERBATING BUILDING OVERSUPPLY CONDITIONS THAT HAVE YET TO PEAK OUT CREATING A MORE PRESSING SITUATION OFFICIALS SAID AND THE GOVERNMENT'S PLANNED TRANSITION TO AN OPEN BIDDING SYSTEM FOR PUBLIC WORKS CONTRACTS IS LIKELY TO DEAL THE INDUSTRY ANOTHER BLOW AS COMPETITION HEATS UP PUSHING DOWN PRICES ACCORDINGLY JAPAN'S FIVE LEADING CONSTRUCTION COMPANIES TAISEI CORP SHIMIZU CORP KAJIMA CORP OBAYASHI CORP AND KUMAGAI GUMI CO POSTED WIDELY MIXED PROFITS FRIDAY FOR THE FISCAL FIRST HALF ENDED SEPT 30 BUT ALL OF THE BUILDERS REPORTED DOUBLEDIGIT DECLINES IN NEW ORDERS AN OMEN FOR SEVERE SALES AND PROFIT CONDITIONS TO COME THE BULK OF THE IMPACT FROM WEAK ORDERS THIS FISCAL YEAR IS GOING TO BE FELT IN FISCAL 1994 AND 1995 SAID KOIICHIRO SATO GENERAL MANAGER OF ACCOUNTING AT SHIMIZU ACCORDING TO THE JAPAN FEDERATION OF CONSTRUCTION CONTRACTORS OVERALL CONSTRUCTION ORDERS AT 57 COMPANIES PLUMMETED 223 IN THE FIRST HALF FROM THE YEAREARLIER SIX MONTHS THE SHARPEST DECLINE SINCE THE ASSOCIATION STARTED KEEPING RECORDS IN 1975 ACCORDING TO ONE COMPANY OFFICIAL THE 57 BUILDERS SAW A 234 DROP IN DOMESTIC ORDERS ALONE WITH PRIVATESECTOR ORDERS SLIDING 259 PUBLICSECTOR CONTRACTS SLUMPED 190 AMONG THE FIVE COMPANIES OBAYASHI WHICH RANKS FOURTH IN TERMS OF SALES REPORTED THE BEST YEARTOYEAR IMPROVEMENT IN PRETAX PROFIT WITH A 134 GAIN IN SHARP CONTRAST KUMAGAI GUMI THE SMALLEST OF THE GROUP POSTED A 75 SLIDE IN PRETAX PROFIT ALTHOUGH THERE HASN'T BEEN NEWS OF ANY LINK FOR KUMAGAI GUMI AND OBAYASHI TO THE CONSTRUCTION INDUSTRY SCANDAL THEIR BUSINESS IS HEAVILY DEPENDENT ON PUBLIC WORKS PROJECTS ABOUT 36 OF ORDERS FOR BOTH COMPANIES ARE DERIVED FROM THE PUBLIC SECTOR AS EXPECTED SALES FOR THE BIG FIVE CONTRACTORS WERE SUPPORTED BY THE FILLING OF EXISTING ORDERS RATHER THAN NEW BUSINESS BECAUSE OF THE LACK OF ECONOMIC ACTIVITY IN JAPAN PRICES FOR BUILDING MATERIALS SUCH AS STEEL AND CEMENT HAVE FALLEN DRAMATICALLY OVER THE PAST TWO YEARS AS COMPANIES CUT BACK EXCESS PRODUCTION CAPACITY IN LINE WITH SLUGGISH FINAL DEMAND BUT WHAT CAN BE CALLED A BOON TO JAPAN'S CONSTRUCTORS HAS BEEN THE DEMISE OF ITS MATERIALS MAKERS AND ARGUABLY OF THE PROSPECTS FOR THE OVERALL ECONOMY'S RECOVERY AS MATERIALS MAKERS SOME OF THE BIGGEST EMPLOYERS IN JAPAN ARE FORCED TO SHUT DOWN PLANTS BECAUSE OF LACK OF DEMAND THOUSANDS OF WORKERS ARE BEING FURLOUGHED OR PERSUADED TO ACCEPT EARLY RETIREMENT ALTHOUGH SOME ECONOMIC POLICY MAKERS LOOK FOR THE ECONOMY TO BEGIN A GRADUAL RECOVERY AS EARLY AS SPRING CONSTRUCTION COMPANY OFFICIALS FRIDAY WERE LOATH TO FORECAST ANY PICKUP IN THE INDUSTRY IN THIS FISCAL YEAR OR THE NEXT ONE OBAYASHI'S SENIOR MANAGING DIRECTOR MASATOSHI INOUE SAYS HE EXPECTS A VERY SEVERE CONDITION FOR ORDERS AT LEAST FOR FISCAL 1994 AND 1995 IT TAKES ABOUT TWO YEARS FOR ORDERS TO AFFECT PROFITS WHICH SUGGESTS WE'RE LOOKING AT A TREND OF LOWER EARNINGS MOREOVER ASSET DEFLATION IN JAPAN IS DISCOURAGING PROPERTYLINKED INVESTMENT ANOTHER SOURCE OF DEMAND FOR THE CONSTRUCTION INDUSTRY LAND PRICES ARE CONTINUING TO FALL 3040 A YEAR SO POTENTIAL CUSTOMERS ARE HOLDING BACK INVESTMENT IN NEW BUSINESS AS THEY AWAIT CHEAPER CAPITAL OR A CLEARER OUTLOOK FOR A REBOUND IN DEMAND ON THE ISSUE OF THE SCANDAL SHIMIZU VICE PRESIDENT TAKESHI SHIROISHI MIRRORED COMMENTS BY OTHER COMPANY EXECUTIVES FRIDAY SAYING WE SINCERELY APOLOGIZE AND ARE TAKING INTERNAL STEPS TO ENSURE THAT THIS TYPE OF THING DOESN'T HAPPEN AGAIN BUT FROM THE ONGOING TAX EVASION TRIAL OF FORMER POLITICAL KINGMAKER SHIN KANEMARU REVELATIONS OF CONSTRUCTION INDUSTRY EXECUTIVES GIVING BRIBES TO LEADING POLITICIANS HAVE CONTINUED TO SURFACE SINCE JUNE WHEN PROSECUTORS BEGAN INDICTING TOP OFFICIALS OF SHIMIZU MORE THAN 20 EXECUTIVES FROM SHIMIZU TAISEI KAJIMA AS WELL AS FROM CIVIL ENGINEER HAZAMA CORP HAVE BEEN ARRESTED ON SUSPICION OF BRIBING POLITICIANS AMONG THE MOST PROMINENT CASES SO FAR HAS INVOLVED JAPANESE GOVERNMENT POWER BROKER ICHIRO OZAWA WHO ADMITTED THAT SHINJI KIYOYAMA A KAJIMA VICE PRESIDENT WHO IS AMONG THOSE ARRESTED GAVE 5 MILLION YEN 466200 TO SEVERAL OF HIS ORGANIZATIONS IN RESPONSE LOCAL AND CENTRAL GOVERNMENTS HAVE BANNED COMPANIES TIED TO THE SCANDAL FROM BIDDING ON NEW PROJECTS HOWEVER THE DIRECT IMPACT ISN'T AS OBVIOUS ON THE TOP FIVE CONTRACTORS AS ON COMPANIES LIKE HAZAMA WHICH SAW PUBLICSECTOR ORDERS FALL 65 IN THE LATEST HALF 9311220185 931122 TRAVEL AGENTS FORCED FROM HOME MUSLIMS MUST TURN TO SERBS FOR PASSAGE IN ONE BOSNIAN CITY THOSE PUSHING FOR RELOCATION ARRANGE VISAS TICKETS WE WILL MAKE IT BRIGHTER' BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BANJA LUKA BOSNIAHERZEGOVINA IN A CONVERTED KINDERGARTEN CLASSROOM WHERE DONALD DUCK STILL ADORNS THE DOOR AND A MONA LISA PRINT HANGS CROOKEDLY ON A DARK WALL THE BOSNIAN WAR PLAYS OUT ITS ENDGAME I'VE HAD ENOUGH I NEED TO LEAVE NOW TAIBA ZISKO CRIES AS SHE PEERS AROUND THE DISNEY CARTOON CHARACTER AND INTO THE OFFICE OF RADE BOJIC THE DIRECTOR OF REFUGEES IN THIS SERBHELD CITY MRS ZISKO IS A MUSLIM WHO HAS BEEN ORDERED TO CLEAR OUT OF HER APARTMENT FEARING FOR HER LIFE SHE HAS DECIDED TO GET OUT OF TOWN ALTOGETHER THAT IS EXACTLY WHAT MR BOJIC WANTS HER TO DO TOO SHE ARRIVES JUST AS MR BOJIC IS POURING PEAR BRANDY THE SERB OBLIGINGLY OFFERS THE MUSLIM A GLASS AND PROPOSES A TOAST TO GOOD HEALTH SHE DECLINES WITH A CONTEMPTUOUS WAVE OF THE HAND YOU DRINK MRS ZISKO SAYS SNEERING I JUST WANT TO GO ANYWHERE EVEN ALBANIA ANYWHERE IN THE WORLD WHERE THEY WILL TAKE ME MR BOJIC NOTES HER NAME AND PHONE NUMBER TRANSPORTATION NEEDS TO BE ARRANGED DOCUMENTS FOR TRAVEL BEYOND BOSNIA MUST BE PREPARED HE EMPTIES THE BRANDY COMPLAINING OF OVERWORK JUST THIS MORNING SOME OTHER MUSLIMS BROUGHT A LIST OF 250 PEOPLE WANTING TO LEAVE THEY BEGGED ME TO HELP THEM HE SAYS HERE WHAT AWAITS THEM IS A WINTER WITHOUT HEAT FOOD AND FOR MANY NO PLACE TO LIVE THE ONLY SALVATION FOR THESE PEOPLE IS IF SOME OTHER COUNTRY TAKES CARE OF THEM NOW AFTER 20 MONTHS OF BATTLEFIELD BUTCHERY THE LAST STAGE OF ETHNIC CLEANSING IS BEING CARRIED OUT WITH TRAVELAGENT ETIQUETTE AND EFFICIENCY AVOID THE HARDSHIPS OF WINTER LEAVE THE AREA NOW SUGGESTS ONE POSTER IN A MUSLIM NEIGHBORHOOD MAKING THE FORCED REMOVAL SOUND LIKE A TRIP TO THE BAHAMAS IN AREAS OF BOSNIA STILL CONTESTED BETWEEN SERBS CROATS AND MUSLIMS BRUTAL FIGHTING CONTINUES WITH ALL SIDES ACCUSED OF COMMITTING MASSACRES BUT IN SERBCONQUERED REGIONS LIKE BANJA LUKA WHERE THE WAR IS THOUGHT TO BE WON THE CARVING OUT OF ETHNICALLY PURE STATES IS BEING COMPLETED LARGELY BY BRIEFCASECARRYING BUREAUCRATS RATHER THAN SOLDIERS HERE IN BOSNIA'S LARGEST CITY AFTER SARAJEVO WHILE SOME SERBS ACT AS THUGS PRESSURING THE MUSLIMS TO LEAVE OTHERS ARRANGE BUS TRAIN AND PLANE TICKETS AND HANDLE THE VISA PAPERWORK TO GET THEM OUT OF TOWN ALL FOR A FEE OF COURSE I TELL YOU HONESTLY THOSE WHO LEAVE HAVE CALLED US AND THANKED US FOR HAVING FACILITATED THEIR DEPARTURES SAYS MR BOJIC WHO SOMETIMES RISES AT DAWN TO PERSONALLY SEE OFF A BUSLOAD OF MUSLIMS THEY SAY THINGS ARE MORE PEACEFUL IN THEIR NEW AREAS THIS IS THE PEACE THAT THE WORLD HAS ORDAINED FOR BOSNIAHERZEGOVINA BY RETREATING FROM THREATS OF MILITARY INTERVENTION AND ENDORSING A PEACE PLAN BASED ON THE ETHNIC PARTITION OF THE COUNTRY WESTERN NATIONS IN PARTICULAR HAVE GIVEN THE COMBATANTS A GREEN LIGHT TO PROCEED WITH THE CARVE UP AT THE BEGINNING OF 1992 BEFORE THE WAR STARTED 13 MILLION PEOPLE LIVED IN THE GREATER BANJA LUKA REGION OF NORTHERN BOSNIA MORE THAN 500000 OF THEM NONSERBS TODAY ACCORDING TO THE UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES FEWER THAN 100000 NONSERBS REMAIN OF 350000 MUSLIMS FEWER THAN 40000 ARE LEFT IN ALL OF BOSNIA HALF OF THE 44 MILLION PREWAR RESIDENTS ARE REFUGEES INCLUDING MANY SERBS AND CROATS WHO ALSO HAVE BEEN DRIVEN FROM THEIR HOMES WHILE SOME HAVE FLED TO OTHER PARTS OF BOSNIA OTHERS UNABLE TO CROSS THE FRONT LINES OF THE FIGHTING HAVE LEFT THE COUNTRY WHAT'S HAPPENING IS EVIL SAYS LOUIS GENTILE DEPUTY HEAD OF THE BANJA LUKA OFFICE OF THE UNHCR IT IS SO FUNDAMENTALLY AGAINST WHAT THE WESTERN WORLD PURPORTS TO BELIEVE IN SO EVIL THAT THE UNHCR WHICH USUALLY ASSISTS REFUGEES IS HELPING TO CREATE THEM IN BOSNIA WHEN MUSLIMS RELATE TALES OF NIGHTTIME SHOOTINGS AND BOMBINGS BY SERBS INTENT ON FORCING THEM TO LEAVE THE ONLY COMFORT THE RELIEF WORKERS CAN OFFER IS TO PROVIDE A WAY OUT LACKING ANY MEANS TO STOP THE ETHNIC CLEANSING THE UNHCR HAS BEEN TWISTED INTO ABETTING IT A SIGN IN THE AGENCY'S BANJA LUKA OFFICE SAYS WELCOME TO THE DARK SIDE OF THE MOON WE WILL MAKE IT BRIGHTER SITTING AT THE DINING TABLE OF ALMASE AND BEGO TURAN WHO NO LONGER SLEEP AT HOME FOR FEAR OF RENEWED SERB ATTACKS ON THEIR MUSLIM NEIGHBORHOOD MR GENTILE SAYS WE CAN'T PROTECT THEM IF I CONVINCE THEM TO STAY AND THEY GET KILLED HE RAISES HIS EYEBROWS AND SWALLOWS THE THOUGHT THAT'S WHY I ALWAYS SAY IT'S THEIR CHOICE THE TURANS HAVE CHOSEN TO GO AND MR GENTILE IS WORKING ON SENDING THEM TO DENMARK MR BOJIC THE SERBIAN REFUGEE DIRECTOR PROBABLY WILL PROVIDE THE BUS TICKET TO GET THEM ON THEIR WAY AS THE WAR ENTERS ITS SECOND WINTER BANJA LUKA THE WOULDBE CAPITAL OF A NEW SERBIAN STATE IS EERILY SHROUDED IN THE HAZE OF WAR AND THE AUTUMN FOG THAT DESCENDS OVER THIS PART OF THE BALKANS THE CENTURIESOLD STREETS ARE CLOGGED WITH MEN IN CAMOUFLAGE UNIFORMS AT CITY HALL VISITORS CHECK THEIR GUNS AT THE RECEPTION DESK ONLY THE BRAVE OR THE CRIMINAL VENTURE OUTSIDE AFTER DARK EVEN WE SERBS DON'T SLEEP AT NIGHT WITHOUT WORRY MR BOJIC SAYS THAT'S THE WAY WAR IS BUT LIFE FOR THE REMAINING MUSLIMS AND CROATS IS TERRIFYING MANY BARRICADE THEMSELVES IN THEIR HOMES AT NIGHT STANDING GUARD WITH PITCHFORKS AND WOODEN CLUBS BEHIND SHUTTERED DOORS AND WINDOWS MOST OF THEM HAVE BEEN DISMISSED FROM THEIR JOBS EVICTION FROM APARTMENTS AND HOUSES IS ROUTINE NIGHTLY ATTACKS WITH MACHINE GUNS AND GRENADES HAVE LEFT SCORES OF CASUALTIES IN RECENT MONTHS ALL 16 MOSQUES IN THE BANJA LUKA REGION ABOUT 120 MILES NORTHWEST OF SARAJEVO HAVE BEEN DYNAMITED TO BITS BANJA LUKA'S MAYOR PREDRAG RADIC BLAMES THE TROUBLE ON THE SEVERAL THOUSAND SERB REFUGEES WHO HAVE FLED INTO THE AREA THEY HAVE BEEN DRIVEN OFTEN BRUTALLY FROM THEIR HOMES BY CROATS AND MUSLIMS HE SAYS SO WHEN THEY COME HERE THEY SHOW THEIR DISSATISFACTION WITH THE THINGS THAT HAVE HAPPENED TO THEM IT'S DIFFICULT TO HAVE A POLICE FORCE SHOW THEM THAT HERE WE STILL LIVE PEACEFULLY MR RADIC WHO SAYS HE WATCHED HIS MOTHER AND TWO SISTERS DIE AT THE HANDS OF CROATS IN WORLD WAR II CLAIMS HIS CITY IS A VICTIM OF THE CIRCUMSTANCES OF THIS VERY VERY DIRTY WAR WHEN ASKED WHY THE HISTORIC MOSQUE BUILT IN 1583 AND STILL HIGHLIGHTED ON TOURIST SIGNS WAS BLOWN UP HE COUNTERS BY SAYING THAT CROATS DESTROYED A 14THCENTURY SERBIAN ORTHODOX MONASTERY IN THE SOUTHERN CITY OF MOSTAR AND THAT 56 ORTHODOX CHURCHES WERE LEVELED IN THE MUSLIMHELD REGION OF TUZLA THE MAYOR OPENS HIS NOTEBOOK LISTING MUSLIM ATROCITIES AGAINST SERBS IN BOSNIA NONE OF THEM HAPPENED IN BANJA LUKA STILL HE SAYS I MUST TELL YOU THESE THINGS HE TELLS OF A SERBIAN MAN WHO HAD 100 POUNDS OF EXPLOSIVES STRAPPED TO HIS BACK BEFORE BEING SHOT A HEEL OF A FOOT HE SAYS THAT'S THE ONLY THING THAT REMAINED OF HIM AND HE TELLS OF NINE SERBIAN MEN WHO WERE ROASTED ON A SPIT LIKE PIGS WHEN PEOPLE HEAR OF THESE THINGS IT IS DIFFICULT TO CONTROL THEM HE SAYS HE DENIES THAT ANYONE IS BEING DRIVEN OUT OF BANJA LUKA BUT REASONS THAT A LITTLE REVENGE AGAINST THE LOCAL MUSLIMS IS ONLY TO BE EXPECTED WE ARE LUCKY THE MAYOR SAYS THAT THINGS AREN'T WORSE MR BOJIC IS MORE CANDID SOME MUSLIMS HAVE EXPERIENCED TERRIBLE THINGS BUT NOT FROM THE GOVERNMENT HE SAYS IT IS DONE BY INDIVIDUALS SOME ARE REFUGEES THEY ARE RUINING THE REPUTATION OF OUR LEADERS AND CITY BUT HE ARGUES YOU CAN'T BELIEVE EVERYTHING YOU HEAR FROM THE MUSLIMS WHEN THEY GET TO THE BORDER THEY TELL STORIES THAT ARE UNPLEASANT HE NOTES YOU HAVE TO WEIGH THE TRUTH OF THEIR STATEMENTS THEY BELIEVE THEY CAN GET BETTER TREATMENT ABROAD IF THEY SAY TERRIBLE THINGS HAPPENED TO THEM NOT ALL THE MUSLIMS WAIT UNTIL THEY GET TO THE BORDER TO TELL THEIR TALES SOME TALK JUST AFTER LEAVING MR BOJIC'S OFFICE THEY'RE DRIVING US OUT ALL US MUSLIMS AND THE CROATS A MUSLIM WOMAN SAYS HER VOICE SHAKING WITH PANIC SHE IS STANDING ON A BUSY STREET MOMENTS AFTER SPEAKING TO MR BOJIC SERBS HAVE TOLD ME THAT IF I CONVERT TO THE EASTERN ORTHODOX RELIGION AND CROSS MYSELF THEY WON'T HARM ME BUT I AM A MUSLIM I WAS BORN HERE SHE PRAYS FOR DELIVERANCE IN THE FORM OF A VISA FROM A WESTERN COUNTRY WHY DOESN'T THE WORLD JUST ACCEPT THIS AND GET US OUT OF HERE IT'S AWFUL SHE SAYS MAY GOD HELP US HE'S THE ONLY ONE WHO CAN IN THE MUSLIM NEIGHBORHOOD CALLED VRBANJE AN ELDERLY WOMAN NAMED SAFETA CULUM POINTS TO THE FRESH BULLET HOLES IN HER HOUSE I CAN'T LIVE LIKE THIS ANYMORE SHE SAYS WEEPING THE NIGHT BEFORE SHE AND HER HUSBAND HAD GONE TO BED WHEN SHE SAYS A GROUP OF MEN CLAIMING TO BE THE MILITARY POLICE KNOCKED ON THE DOOR THE CULUMS REFUSED TO LET THEM IN THEN THE SHOOTING BEGAN THEY STARTED COMING FIVE MONTHS AGO NOW THEY COME JUST ABOUT EVERY NIGHT MRS CULUM SAYS THEY'LL COME AGAIN TONIGHT IT HAS BEEN MORE THAN A YEAR SINCE SHE AND HER HUSBAND BOTH 53 YEARS OLD LOST THEIR JOBS AT A SERBOWNED FURNITURE STORE IN JULY THEY WERE EVICTED FROM THEIR APARTMENT IN TOWN AND HAVE BEEN RELYING ON FAMILY AND FRIENDS TO SURVIVE BUT IT WAS ONLY AFTER MRS TURAN WAS SHOT IN THE LEG LAST MONTH THAT THEY DECIDED TO LEAVE I'M AFRAID FOR MY LIFE SAYS MRS TURAN THERE IS NO PLACE TO HIDE ONE BY ONE ALL OF OUR FRIENDS ARE LEAVING MR TURAN ADDS THEY WILL ABANDON THEIR HOUSE AS IT IS NEAT AND FURNISHED AND SIMPLY GO HE SAYS IN THEIR BEDROOM POCKED WITH BULLET HOLES A FEW PERSONAL ITEMS ARE LINED UP ON A TABLE READY TO BE PACKED TOOTHPASTE SHAVING CREAM A SHOEHORN A FEW PHOTOGRAPHS WE ARE SAVING OUR LIVES HE SAYS NOTHING ELSE MATTERS THEY WILL JOIN A HUMAN RIVER THAT HAS RECENTLY REACHED 2000 PEOPLE A MONTH ABOUT A BUSLOAD A DAY WHO LEAVE BOSNIA OVER A COUNTRY BRIDGE AT GRADISKA THAT LEADS INTO CROATIA IF MR BOJIC OR THE SERBIAN RED CROSS HAVEN'T YET ARRANGED THE TRAVEL PAPERS THERE IS A PRIVATE AGENT AT THE GRADISKA BUS STATION WHO CAN HELP FOR THE EQUIVALENT OF 60 THE SERBRUN INLINGUA AGENCY PROVIDES A BUS TICKET AND DOCUMENTS TO CROSS THROUGH CROATIA 70 OF THAT MONEY THE AGENCY SAYS GOES TO THE LOCAL GOVERNMENT THE UNHCR SAYS THE SERBS ALSO USUALLY CHARGE EXIT TAXES AND OTHER FEES THAT BRING THE COST OF DEPARTURE TO AS MUCH AS 200 A PERSON MR BOJIC SAYS THE MONEY IS NECESSARY TO PAY FOR TRANSPORTATION WHICH SOMETIMES MEANS EVEN BUYING AIRPLANE TICKETS FOR THE MUSLIMS ONCE THEY REACH ZAGREB OR BUDAPEST THINGS WERE EASIER LAST SUMMER HE SAYS BEFORE MOST EUROPEAN COUNTRIES BEGAN LIMITING VISAS FOR BOSNIAN REFUGEES NOW HE SAYS THE PAPERWORK IS IMMENSE I HAVE FRIENDS THAT I HAVE SENT OUT THEY CALL ME ON THE TELEPHONE AND ASK ME TO HELP THEM HE SAYS EARNESTLY PULLING TIGHT HIS LEATHER JACKET AGAINST THE COLD IN HIS UNHEATED OFFICE WE'LL DO WHATEVER WE POSSIBLY CAN TO GET THEM OUT SHOULD THE UN'S WARCRIMES TRIBUNAL EVER GET AROUND TO INVESTIGATING THE HARASSMENT AND FORCED RELOCATION OF BOSNIANS AS PART OF THE ETHNIC CLEANSING MR BOJIC A FORMER HEALTH INSPECTOR FOR THE CITY FIGURES HE HAS A PERFECT ALIBI MANY OF THE MUSLIMS WHO COME TO HIS OFFICE HE NOTES HAVE BEEN REFERRED TO HIM BY THE UNHCR AND THE RED CROSS AND HE AT TIMES ALSO REFERS MUSLIMS TO THEM BESIDES HE SAYS I'M ONLY DOING THIS FOR HUMANITARIAN REASONS HE PRESSES HIS CASE PEOPLE CAN LOOK AT THIS ANYWAY THEY WANT LOOK THE MUSLIMS GIVE US A LIST AND SAY GET US OUT OF HERE' THEY WANT TO GO THERE IS NO BUSINESS HERE NO MEDICINE NO FOOD THEY CAN'T EVEN GET THE ABSOLUTE NECESSITIES OF LIFE MR BOJIC FEELS HE SHOULD BE THANKED NOT CONDEMNED IT BOTHERS ME THAT THE AMERICANS ARE SO AGAINST THE SERBS HE SAYS I CAN'T UNDERSTAND WHY THE WORLD TREATS US THIS WAY WE'RE NOT AS TERRIBLE AS PEOPLE SAY BEHIND HIM THE MONA LISA SMILES HER MYSTERIOUS SMILE MR BOJIC ACKNOWLEDGES THAT THE PAINTING MAY BE A LITTLE OUT OF PLACE HERE BUT ADDS MANY SERBS HAVE MONA LISA HANGING IN THEIR HOMES MR BOJIC GROPES FOR AN EXPLANATION A SECRETARY COMES TO HIS AID BECAUSE SHE SAYS WE ARE CULTURED PEOPLE 9311220184 931122 WHO'S NEWS DIED WILLIAM F SOUDER JR 82 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MARSH & MCLENNAN COS FRIDAY IN DELRAY BEACH FLA OF HEART FAILURE 9311220183 931122 WHO'S NEWS CENTRAL & SOUTH WEST CORP CENTRAL & SOUTH WEST CORP DALLAS LLOYD D WARD PRESIDENT OF FRITOLAY'S CENTRAL DIVISION WAS NAMED TO THE BOARD OF DIRECTORS OF THIS UTILITY HOLDING COMPANY MR WARD 44 YEARS OLD INCREASES THE BOARD TO 13 MEMBERS 9311220182 931122 LEISURE & ARTS ON SPORTS NO BOWL FOR AUBURN BY FREDERICK C KLEIN AUBURN ALA PATRICK NIX A TALL WIDEEYED SOPHOMORE FACED THE PRESS AND TELEVISION CAMERAS IN THE TRAILER NEXT TO HIS TEAM'S LOCKER ROOM AFTER HIS AUBURN UNIVERSITY FOOTBALL TEAM BEAT ALABAMA HERE SATURDAY 2214 GIVE US A MIKE CHECK YELLED A TV TYPE IN THE REAR HOW DO I DO THAT REPLIED THE YOUNG MAN I'M NEW AT THIS IT WAS INDEED NIX'S NEWNESS THAT BROUGHT HIM TO THE PODIUM IN THIS THE ANNUAL BIG GAME OF HIS STATE REGION AND SOMETIMES NATION A BACKUP QUARTERBACK WHO'D THROWN JUST 12 PASSES ALL SEASON HE WAS PRESSED INTO SERVICE WHEN SENIOR STARTER STAN WHITE WENT DOWN AND OUT WITH A KNEE INJURY LATE IN THE THIRD QUARTER TRAILING 145 AUBURN FACED A FOURTH DOWN AND 15 FROM THE 'BAMA 35YARD LINE AND A STIFF WIND THAT MADE A FIELD GOAL UNLIKELY A PUNT WOULDN'T GAIN ALL THAT MUCH SO WHY NOT PASS REASONED TERRY BOWDEN THE TIGERS COACH SO YOUNG NIX LOFTED THE BALL TOWARD THE GOAL LINE FRANK SANDERS A SPRINGY 6FOOT2 WIDE RECEIVER LEAPED AND GRABBED THE BALL AWAY FROM TOMMY JOHNSON A 510 CORNERBACK THEN SANDERS TUMBLED INTO THE END ZONE AUBURN LATER WOULD KICK A FIELD GOAL TO GO AHEAD AND SCORE A LATE TOUCHDOWN FOR BREATHING ROOM BUT THE FAIRHAIRED NIX FROM RAINBOW CITY ALA SIZE VERY LITTLE HAD MADE THE PLAY THAT WON THE GAME HE'LL NEVER HAVE TO BUY HIMSELF ANOTHER DRINK IN HIS HOME STATE SANDERS NEITHER WAS I NERVOUS HE ECHOED MY ADRENALINE WAS PUMPING SO HARD I NEVER THOUGHT ABOUT IT SO WAS THE ADRENALINE OF THE 85000 PEOPLE WHO CROWDED JORDANHARE STADIUM IN THIS COLLEGE TOWN OF 30000 SOULS PLUS THE 50000 OR SO MORE WHO PAID 10 A HEAD TO WATCH THE PROCEEDINGS ON CLOSEDCIRCUIT TV IN ALABAMA'S HOME STADIUM IN TUSCALOOSA HERE WAS AUBURN A SURPRISE 100 IN THE WONLOST COLUMN GOING IN AND 'BAMA AT 811 THERE WAS NO OVERTHEAIR TV BECAUSE AUBURN'S ON NCAA PROBATION THE RESULT OF A FORMER PLAYER'S DISCLOSURE THAT HE'D BEEN PAID UNDER THE TABLE BY COACHES AND ALUMS THE TIGERS CAN'T GO TO A POSTSEASON BOWL GAME FOR THE SAME REASON 'BAMA CURRENTLY FACES SIMILAR CHARGES AND COULD SUFFER A SIMILAR PENALTY BUT HEY IT WOULD TAKE MORE THAN THAT TO SPOIL THIS DAY 10 AND 0 AND 'BAMA TO GO PROBATION'S NOT SO BAD READ ONE AUBURN FAN'S TSHIRT THERE ARE OTHER SUCH ANNUAL COLLEGE FOOTBALL SHOWDOWNS AROUND THE LAND AND SOME LIKE TEXAS VS TEXAS A&M FLORIDAFLORIDA STATE AND GEORGIAGEORGIA TECH MATCH SAMESTATE INSTITUTIONS IN ALL THOSE RIVALRIES ONE SCHOOL STAKES OUT THE GROUND OF SUPPOSED GREATER SOPHISTICATION AND BRANDS ITS FOE A KIND OF BACKWATER MOO U FOR REASONS NOT CLEAR TO AN OUTSIDER 'BAMA HAS SECURED THE COSMOPOLITAN ROLE HEREABOUTS GLEEFULLY MAKING AUBURN THE BUTT OF ITS RUBE JOKES SAMPLE WHAT'S A SEVENCOURSE DINNER FOR AN AUBURN MAN STEWED POSSUM AND A SIXPACK AUBURN BOOSTERS REPLY BY BRANDISHING PUBLISHED ASSESSMENTS THAT SHOW THEIR SCHOOL TO BE THE HIGHERRANKED ACADEMICALLY OF THE TWO FURTHER SIZZLE IS ADDED BY THE FACT THAT ALABAMA LACKS BIGTIME PROFESSIONAL TEAMS MAKING THE COLLEGE GAME THE STATE'S MAIN SHOW AND THERE'S THE HIGH PROPORTION OF ALABAMANS WHO HAVE ATTENDED ONE OF THEIR STATE'S TWO BIGGEST UNIVERSITIES THAT MAKES THIS A GAME THAT PUTS ON OPPOSITE SIDES PEOPLE WHO SHARE THE SAME NEIGHBORHOODS OFFICES AND EVEN BEDS WHILE MOST OF THE CARS AND CAMPERS THAT TURNED THE REDBRICK AUBURN CAMPUS INTO A GIANT PARKING LOT AND PICNIC GROUND ON A CRISP SUNNY DAY BORE THE FLAG OF ONE OF THE SCHOOLS SOME BORE THE FLAGS OF BOTH THE RIVALRY CAN GET PRETTY NASTY WOULDN'T YOU SAY DEAR SAID AUBURN GRAD KATHY MOON OF ALEXANDER CITY ALA UHHUH REPLIED HER 'BAMAGRAD HUSBAND KEITH THAT WAS ESPECIALLY TRUE IN A YEAR IN WHICH NCAA PENALTIES FOR AUBURN AND ITS PROBE OF 'BAMA PUT BACKERS OF BOTH SCHOOLS IN BAD MOODS 'BAMA LAST YEAR'S UNDEFEATED NATIONAL CHAMPS HAD LOOKED FORWARD TO FURTHER UNSULLIED SUCCESS AUBURN TO A PAINFUL REBUILDING YEAR UNDER BOWDEN WHO'D REPLACED THE BESMIRCHED PAT DYE BOWDEN SHORT REDFACED AND 37 WAS HIRED AS MUCH FOR HIS X'S AND Y'S HIS GENES THAT IS AS FOR HIS X'S AND O'S HE'S THE SON OF BOBBY BOWDEN THE LONGTIME COACH AT FLORIDA STATE HE'D PROMISED LITTLE ONCE OPINING THAT A MIDDLE OF THE PACK FINISH IN THE SOUTHEASTERN CONFERENCE WOULD BE NICE BUT AFTER HIS TIGERS CAME FROM BEHIND TO UPSET FLORIDA 3835 IN THE SEASON'S SEVENTH GAME GREATER GLORY BECKONED WITH NO BOWL TO GO TO EVERY GAME BECAME A BOWL GAME FOR US SAID HE WITH OBVIOUS LOGIC THE TEAM BOWDEN HAS FASHIONED STANDS OUT NOWHERE MORE THAN ON THE SCOREBOARD THOUGH UNBEATEN IT LED THE SEC ONLY IN RUSHING OFFENSE AND THERE HAD ONLY A 10YARDSAGAME EDGE OVER THE NEXT THREE TEAMS 'BAMA ON THE OTHER HAND HAD THE NATION'S BEST PASS DEFENSE AND THIRDBEST DEFENSE OVERALL ITS SOLE PREVIOUS LOSSTO LOUISIANA STATECAME WITH TOP QUARTERBACK JAY BARKER OUT WITH INJURIES BARKER WAS BACK ON SATURDAY AND IF THE CRIMSON TIDE OFFENSE WASN'T IN FULL TUNE IT PLAYED A FEW NOTES VERY WELL EARLY ON AFTER SPOTTING AUBURN A FIELD GOAL 'BAMA SPRUNG RECEIVER KEITH LEE FOR A 63YARD TOUCHDOWN RUN ON A REVERSE A SAFETY ON A SACK OF BARKER FOLLOWED BUT NEAR THE END OF THE FIRST HALF THE TIDE GOT ANOTHER SWIFT TD ON A 34YARD BARKERTOLEE COMPLETION AND A 19YARD RUN BY TAILBACK CHRIS ANDERSON HALF TWO THOUGH WAS ALL AUBURN THE NIXTOSANDERS PASS WAS CRUCIAL SO WAS 'BAMA COACH GENE STALLINGS'S DECISION TO GO FOR A FIRST DOWN ON FOURTHANDONE FROM HIS OWN 29YARD LINE WHILE TRAILING 1514 WITH NINE MINUTES LEFT AUBURN PILED UP TARRANT LYNCH'S PLUNGE ON THAT PLAY AND WHILE IT FAILED TO SCORE ON ITS NEXT POSSESSION IT LEFT ITS FOE DEEP IN ITS OWN TERRITORY WITH LITTLE TIME LEFT AN INTERCEPTION OF A BARKER PASS SET UP A 70YARD SCORING RUN BY JAMES BOSTIC THAT SET THE FINAL SCORE AND 110 ISN'T BAD EVEN IF THERE IS NO PLACE ELSE TO GO WE'LL GET A NICE VACATION AND BEATING ALABAMA MEANS WE WON'T HAVE TO TAKE ANY STUFF AROUND THE STATE FOR A YEAR SAID THOMAS BAILEY A JUNIOR RECEIVER 9311220181 931122 WHO'S NEWS MICHAEL ANTHONY JEWELERS INC MICHAEL ANTHONY JEWELERS INC MOUNT VERNON NY MARK A KURLAND 44 YEARS OLD AND JEROME PETERSON 58 WERE ELECTED DIRECTORS OF THIS DESIGNER AND MANUFACTURER OF GOLD JEWELRY INCREASING THE BOARD'S SIZE TO EIGHT MR KURLAND IS SENIOR MANAGING DIRECTOR OF BEAR STEARNS & CO MR PETERSON IS A PRIVATE INVESTOR 9311220180 931122 WHO'S NEWS PENOBSCOT SHOE CO PENOBSCOT SHOE CO OLD TOWN MAINE PAUL HANSEN PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER MR HANSEN 53 YEARS OLD SUCCEEDS IRVING KAGAN WHO WILL RETIRE AS CHIEF EXECUTIVE DEC 31 MR KAGAN 64 WILL REMAIN AS CHAIRMAN PENOBSCOT MAKES WOMEN'S SHOES 9311220179 931122 WHO'S NEWS OCTEL COMMUNICATIONS CORP OCTEL COMMUNICATIONS CORP MILPITAS CALIF ROBERT COHN 44 YEARS OLD COFOUNDER AND CHAIRMAN OF THIS MAKER OF INFORMATION PROCESSING SYSTEMS WAS NAMED TO THE ADDITIONAL POSITIONS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS DOUGLAS CHANCE WHO RESIGNED 9311220178 931122 WHO'S NEWS COMPREHENSIVE CARE CORP COMPREHENSIVE CARE CORP ST LOUIS CHRISS W STREET A BANKRUPTCY SPECIALIST WAS NAMED CHAIRMAN OF THIS HEALTHCARE PROVIDER MR STREET 43 YEARS OLD WILL CONTINUE TO HEAD CHRISS STREET & CO AN INVESTMENT BANKING FIRM THAT SPECIALIZES IN CORPORATE RESTRUCTURING MR STREET SUCCEEDS NORMAN PERRY WHO CONTINUES AS A DIRECTOR MICHAEL K O'TOOLE A DIRECTOR WAS NAMED TO THE NEW POST OF VICE CHAIRMAN 9311220177 931122 WHO'S NEWS PFIZER INC PFIZER INC NEW YORK PETER G TOMBROS 51 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT INVESTOR RELATIONS EFFECTIVE DEC 1 GERALD H SCHULZE 45 CURRENTLY EXECUTIVE VICE PRESIDENT HOSPITAL PRODUCTS GROUP AND PRESIDENT MEDICAL DEVICES GROUP SUCCEEDS MR TOMBROS AS VICE PRESIDENT CORPORATE STRATEGIC PLANNING SEPARATELY P NIGEL GRAY 54 PRESIDENT OF THE HOWMEDICA UNIT OF THE HOSPITAL PRODUCTS GROUP OF THIS PHARMACEUTICAL AND HEALTHCARE CONCERN WAS NAMED EXECUTIVE VICE PRESIDENT HOSPITAL PRODUCTS GROUP AND PRESIDENT MEDICAL DEVICES GROUP 9311220176 931122 TECHNOLOGY TENNESSEE TO ALTER EXPAND MEDICAID HEALTH PROGRAM WASHINGTON TENNESSEE HAS WON PERMISSION FROM THE FEDERAL GOVERNMENT TO ALTER AND EXPAND ITS MEDICAID HEALTH PROGRAM TO COVER 500000 ADDITIONAL UNINSURED RESIDENTS OF THE STATE THE PROGRAM KNOWN AS TENNCARE WOULD MOVE THE STATE'S ONE MILLION MEDICAID RECIPIENTS INTO HEALTH MAINTENANCE ORGANIZATIONS AND OTHER NETWORKS OF DOCTORS AND HOSPITALS THAT OFFER DISCOUNTED PRICES AT THE SAME TIME IT WOULD MAKE SUCH COVERAGE AVAILABLE TO ABOUT 500000 OF THE STATE'S RESIDENTS WHO CURRENTLY DON'T QUALIFY EVEN THOUGH THEY HAVE NO HEALTH INSURANCE ANYONE WITH AN ANNUAL INCOME ABOVE THE FEDERAL POVERTY LINE WOULD BE REQUIRED TO SHARE IN THE COST OF THE PROGRAM BY PAYING PREMIUMS DEDUCTIBLES AND COPAYMENTS ON A SLIDING SCALE THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES APPROVED THE EXPERIMENT AS A FIVEYEAR DEMONSTRATION PROGRAM TENNESSEE ISN'T THE FIRST STATE TO MOVE MEDICAID RECIPIENTS INTO HMOS BUT IT IS THE FIRST TO ALLOW UNINSURED PEOPLE WHO CURRENTLY DON'T QUALIFY TO BUY INTO THE PROGRAM MEDICAID IS A HEALTHCARE PROGRAM FOR LOWINCOME PEOPLE IT IS RUN JOINTLY BY THE FEDERAL GOVERNMENT AND THE STATES 9311220175 931122 WHO'S NEWS OSHKOSH B'GOSH INC OSHKOSH B'GOSH INC OSHKOSH WIS DAVID OMACHINSKI 41 YEARS OLD WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF CHILDREN'S WEAR AND MENSWEAR HE SUCCEEDS WILLIAM JACOBSEN WHO IS RETIRING HE WAS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF SCHUMAKER ROMENESKO & ASSOCIATES SC 9311220174 931122 ECONOMY TRADEGAP DATA DON'T ALWAYS REFLECT SOLID SURPLUS FROM EXPORTS OF SERVICES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR ALL THE TALK ABOUT THIS COUNTRY'S TROUBLING MERCHANDISETRADE DEFICIT IT'S WORTH NOTING THAT THE US IS RUNNING QUITE A HEFTY SURPLUS WHEN IT COMES TO SERVICES THE RESULT IS THAT AMERICA'S TRADE DEFICIT LOOKS CONSIDERABLY BETTER AND THE COUNTRY SEEMS FAR MORE COMPETITIVE WHEN THE TRADE OF SERVICES IS INCLUDED WITH GOODS IN 1992 FOR EXAMPLE THE MERCHANDISETRADE DEFICIT WORSENED TO 961 BILLION PROMPTING CALLS TO BASH CERTAIN TRADING PARTNERS OR PROTECT DOMESTIC INDUSTRIES THAT HAVE LOST MARKET SHARE BUT THAT SAME YEAR THE US CHALKED UP A 606 BILLION SURPLUS IN SERVICES BRINGING THE OVERALL GAP TO ONLY 356 BILLION THIS POINT IS OFTEN LOST ON THE GENERAL PUBLIC HOWEVER ECONOMISTS SAY IT'S BECAUSE THE GOVERNMENT RELEASES MERCHANDISETRADE FIGURES ON A MONTHLY BASIS BUT COMPREHENSIVE SERVICETRADE FIGURES ARE AVAILABLE ONLY QUARTERLY AND AREN'T WIDELY PUBLICIZED ON FRIDAY FOR EXAMPLE THE GOVERNMENT ANNOUNCED THAT IN SEPTEMBER IMPORTS ROSE 34 TO 4975 BILLION AND EXPORTS ROSE 21 TO 3887 BILLION BUT THOSE FIGURES INCLUDED ONLY MERCHANDISE THE EXPORT OF SERVICES IS BECOMING INCREASINGLY IMPORTANT TO THE US ECONOMY WE ARE MORE OF A SERVICEORIENTED ECONOMY AND WE TEND TO BE VERY GOOD AT IT AND VERY COMPETITIVE SAYS JOHN SILVIA CHIEF ECONOMIST FOR KEMPER FINANCIAL SERVICES INC IN CHICAGO WE SHOULD BE MORE OPTIMISTIC ABOUT OUR STRENGTH BY FAR THE LARGEST EXPORT OF US SERVICES IS TRAVEL AND TOURISM WHICH ACCOUNTS FOR A THIRD OF THE SERVICE SURPLUS BUT THERE ARE OTHER SIGNIFICANT SERVICE EXPORTS AS WELL WHEN FOREIGN STUDENTS COME TO THE US TO GET AN EDUCATION OR SERIOUSLY ILL PEOPLE OVERSEAS TRAVEL TO THE US FOR MEDICAL TREATMENT IT IS CONSIDERED A US EXPORT OF SERVICES EXPORTS OF US MERCHANDISE STILL OUTWEIGH THE SALE OF US SERVICES OVERSEAS BY MORE THAN 2 TO 1 BUT OVER THE PAST DECADE SERVICES HAVE BECOME A BIGGER AND BIGGER PART OF AMERICA'S EXPORT PIE LAST YEAR FOR EXAMPLE SERVICES REPRESENTED ROUGHLY 29 OF ALL US EXPORTS IN 1980 SERVICES REPRESENTED ONLY 18 THE OVERALL PATTERN OF THE TRADE DEFICIT WITH OR WITHOUT SERVICES IS STILL VERY MUCH THE SAME THE TRADE GAP WIDENED MORE EACH YEAR THROUGH 1987 AND THEN BEGAN TO MAKE IMPROVEMENTS THROUGH 1991 LAST YEAR HOWEVER THE TRADE PICTURE WEAKENED BECAUSE OF THE ECONOMIC SLUMP IN EUROPE AND JAPAN AND THE SLOWDOWN IN MEXICO CUSTOMERS OF US SERVICES ARE ABOUT THE SAME AS CUSTOMERS OF US GOODS AS IN MERCHANDISE TRADE CANADA IS THE LARGEST CONSUMER OF US SERVICES FOLLOWED BY JAPAN AND MEXICO WESTERN EUROPE IS THE LARGEST REGION GOODS OR SERVICES WE EXPORT TO COUNTRIES THAT HAVE HIGHER INCOMES ARE CLOSE BY OR HAVE GOOD EXCHANGE RATES SAYS BRIAN HORRIGAN TRADE EXPERT FOR LOOMIS SAYLES & CO IN BOSTON OVERALL THE US TRADE GAP WORSENED BECAUSE THE US ECONOMY IS SHOWING SOME SPARK WHILE MANY OF ITS TRADING PARTNERS REMAIN SLUGGISH FOR INSTANCE THE COMMERCE DEPARTMENT SAID FRIDAY THAT THE MERCHANDISETRADE DEFICIT WIDENED TO 109 BILLION IN SEPTEMBER FROM A REVISED 1005 BILLION IN AUGUST SLUMPS IN EXPORT SALES TO EUROPE AND JAPAN COMBINED WITH THE GROWING INTAKE OF IMPORTS HERE MADE THE TRADE GAP WORSE THERE WAS ALSO A RARE TRADE DEFICIT WITH MEXICO THE FIRST IN MORE THAN TWO YEARS THE RESULT OF MEXICO'S SLOWING ECONOMY AND THE GROWTH IN US IMPORTS FROM SOUTH OF THE RIO GRANDE THE BUREAU OF ECONOMIC ANALYSIS WHICH IS RESPONSIBLE FOR TRADE DATA IS WORKING TO DEVELOP A MONTHLY FIGURE FOR THE TRADE BALANCE OF SERVICES IT WILL KNOW WITHIN A MONTH WHETHER A TEST SERIES IT HAS BEEN RUNNING IS ACCURATE ENOUGH FOR REGULAR RELEASE OFFICIALS SAY AND A MONTHLY SERVICE REPORT COULD BE AVAILABLE BY MARCH DATA COLLECTION FOR THE TRADE OF SERVICES IS MUCH MORE DIFFICULT THAN GATHERING INFORMATION ON MERCHANDISE TRADE THAT'S BECAUSE WHEN A BOAT COMES IN TO DOCK WITH A LOAD OF CARS FOR EXAMPLE IT IS EASY TO COUNT THEM BUT OFTEN TIMES THE TRADE OF SERVICES IS DONE BY MAILING A PIECE OF PAPER BACK AND FORTH OR PICKING UP THE TELEPHONE SO THE TRANSACTIONS ARE NOT EASY TO TRACK MR HORRIGAN SAYS US MERCHANDISE TRADE BALANCES BY REGION IN BILLIONS OF US DOLLARS NOT SEASONALLY ADJUSTED SOUTH KOREA 9311220173 931122 FINANCING BUSINESS BAUSCH & LOMB INC BAUSCH & LOMB INC ROCHESTER NY SAID IT FILED A SHELF REGISTRATION FOR 300 MILLION IN MEDIUMTERM NOTES A SPOKESMAN FOR THE CONTACTLENS PERSONAL HEALTHCARE AND MEDICALPRODUCTS CONCERN SAID THERE WERE NO IMMEDIATE PLANS TO USE THE SHELF REGISTRATION BUT ADDED THAT THE FUNDS WOULD BE EARMARKED FOR GENERAL WORKINGCAPITAL NEEDS 9311220172 931122 POLITICS & POLICY SENATE ETHICS COMMITTEE CLEARS HATCH IN BCCI CASE WASHINGTON THE SENATE ETHICS COMMITTEE SAID IT CLEARED SEN ORRIN HATCH R UTAH OF WRONGDOING IN CONNECTION WITH HIS EFFORTS TO GET A LOAN FOR A FRIEND AND CAMPAIGN CONTRIBUTOR FROM BANK OF CREDIT & COMMERCE INTERNATIONAL A STATEMENT FROM THE COMMITTEE SATURDAY SAID THAT IT HAD SUBPOENAED AND REVIEWED DOCUMENTS AND DEPOSITIONS INCLUDING ONE FROM SEN HATCH IN ITS PROBE IN ITS FOURMONTH INQUIRY THE PANEL CONSIDERED WHETHER SEN HATCH ACTED IMPROPERLY BY DEFENDING THE ACTIONS OF BCCI IN SENATE SPEECHES WHILE MEANWHILE ATTEMPTING TO GET BCCI TO LEND 10 MILLION TO HOUSTON REALESTATE DEVELOPER MONZER HOURANI WHO WAS ALSO A HATCH CAMPAIGN CONTRIBUTOR THE LOAN WAS NEVER MADE BOTH HAVE SAID THE COMMITTEE STATEMENT SAID THAT IT FOUND NO CREDIBLE EVIDENCE WHICH PROVIDES REASON TO BELIEVE THAT SEN HATCH ENGAGED IN ANY CONDUCT WHICH WOULD CONSTITUTE A VIOLATION OF ANY LAW OF THE UNITED STATES OR OF ANY RULE OF THE SENATE NOR ANY REASON TO BELIEVE THAT THE SENATOR ENGAGED IN ANY IMPROPER CONDUCT SEN HATCH HIMSELF REQUESTED THE INVESTIGATION FOLLOWING NEWS REPORTS OF THE TIES BETWEEN HIMSELF AND BCCI THE SENATOR SAID IT WAS THE ONLY WAY TO CLEAR HIS NAME BCCI WAS CLOSED IN 1991 AFTER DISCLOSURES OF MONEY LAUNDERING AND OTHER FRAUDULENT ACTIVITIES REGRETTABLY THOSE IN WASHINGTON WHO ENGAGE IN HIGHLY PARTISAN POLITICS DON'T ALWAYS RESPECT THE TRUTH SEN HATCH SAID IN A STATEMENT MY INTEGRITY WAS TARGETED BY JUST SUCH A SMEAR CAMPAIGN 9311220171 931122 WHO'S NEWS UNITED TECHNOLOGIES CORP UNITED TECHNOLOGIES CORP HARTFORD CONN ANGELO J MESSINA 40 YEARS OLD WAS NAMED DIRECTOR INVESTOR RELATIONS SUCCEEDING SCOTT R LEVIN 41 WHO WILL BECOME VICE PRESIDENT AND GENERAL MANAGER AT UNITED TECHNOLOGIES' CARRIER REPLACEMENT COMPONENTS DIVISION NORTH AMERICAN OPERATIONS MR MESSINA WAS MOST RECENTLY ASSOCIATE GENERAL COUNSEL AND DIRECTOR LEGAL AFFAIRS FOR LATIN AMERICAN OPERATIONS AT THE OTIS ELEVATOR UNIT OF THIS HIGHTECHNOLOGY PRODUCTS AND SUPPORT SYSTEMS CONCERN 9311220170 931122 WHO'S NEWS BAXTER INTERNATIONAL INC BAXTER INTERNATIONAL INC DEERFIELD ILL HENRY R AUTRY 45 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER HE WILL OVERSEE A RANGE OF STAFF FUNCTIONS INCLUDING QUALITY REGULATORY AND GOVERNMENTAL AFFAIRS HE PREVIOUSLY WAS PRESIDENT OF BAXTER'S IV THERAPY UNIT BEFORE THAT HE WAS PRESIDENT OF THE HOSPITAL DISTRIBUTION SERVICES UNIT 9311220169 931122 DEC CONSIDERS PACT WITH PRICE WATERHOUSE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL MAYNARD MASS DIGITAL EQUIPMENT CORP AND PRICE WATERHOUSE ARE NEGOTIATING A JOINT VENTURE IN THE 800 MILLION MARKET FOR WORKERS' COMPENSATION CLAIMSPROCESSING SYSTEMS EXECUTIVES SAID DEC'S REGINA LONDERGAN A SENIOR MANAGER IN THE COMPUTER MAKER'S INSURANCEINDUSTRY UNIT SAID THE EFFORT WILL TARGET INTERNATIONAL BUSINESS MACHINES CORP'S LARGE BASE IN THAT MARKET SHE SAYS DIGITAL WON CONTRACTS OVER IBM FROM FOUR STATES THAT RECENTLY HAD PENDING AGREEMENTS FOR NEW SYSTEMSSALES RANGING FROM 2 MILLION TO 7 MILLION EACH THE COMPANY WON CONTRACTS IN MARYLAND LOUISIANA NEVADA AND UTAH AND FACES IBM IN THREE OTHER STATES THE SYSTEMS SCAN STORE AND ORGANIZE IMAGES OF DOCUMENTS SUCH AS CLAIM FORMS MEDICAL REPORTS AND ACCIDENT REPORTS DIGITAL'S SYSTEMS ARE BASED ON STANDARDOPERATING SOFTWARE AND DESKTOP PERSONAL COMPUTERS OR CLIENTS TIED TOGETHER BY LARGER SERVER COMPUTERS BASED ON DIGITAL'S NEW ALPHA SEMICONDUCTOR DESIGN MOST IBM SYSTEMS BY CONTRAST ARE BUILT AROUND MAINFRAME COMPUTERS LINKED TO TERMINALS OR IBM'S AS/400 MINICOMPUTER WHICH RUNS ON PROPRIETARY SOFTWARE WITH ITS NEW CLIENTSERVER APPROACH DIGITAL IS GOING TO DOMINATE THIS MARKET SHE SAID THE IBM SYSTEMS ARE OUTDATED AN IBM EXECUTIVE DISMISSED THIS CLAIM AND SAID MAINFRAMES ARE IDEAL FOR SUCH HEAVYDUTY TASKS AT THE SAME TIME HE SAID IBM HAS SEVERAL MIDRANGE AND WORKSTATIONBASED APPROACHES AVAILABLE PAUL BROOKS OF IBM'S INSURANCE AND HEALTHINDUSTRY MARKETING UNIT SAID DIGITAL'S PAST EFFORTS HAVEN'T BEEN VERY SUCCESSFUL BUYERS OF SUCH SYSTEMS INCLUDE STATES AND INSURANCE COMPANIES WHICH OFTEN MUST TRACK INDIVIDUAL CLAIMS OVER A TWOYEAR TO THREEYEAR PERIOD ANDREW KASKIW A PRICE WATERHOUSE PARTNER IN ATLANTA CALLED THE EXPECTED AGREEMENT A HUGE OPPORTUNITY IN A GROWING MARKET WHERE STATE AND INSURANCECOMPANY CUSTOMERS ARE LOOKING TO INCREASE EFFICIENCY MR KASKIW SAID PRICE WATERHOUSE IS PROVIDING ITS SOFTWARE AND SERVICES TO THE VENTURE BUT ADDED THAT THE RELATIONSHIP WITH DIGITAL ISN'T EXCLUSIVE AND THAT THE INTERNATIONAL ACCOUNTING AND CONSULTING FIRM STILL WORKS WITH IBM BUT HE ALSO SAID ANY MAINFRAME VENDOR IS VULNERABLE NOW WITH THE WAY THE TECHNOLGY AND COSTPERFORMANCE CURVE IS CHANGING 9311220168 931122 FINANCING BUSINESS ICO INC ICO INC HOUSTON SAID IT WILL OFFER 12 MILLION DEPOSITARY SHARES AT 25 APIECE EACH DEPOSITARY SHARE REPRESENTS ONEQUARTER OF A SHARE OF ICO'S 675 CONVERTIBLE EXCHANGEABLE PREFERRED STOCK THE COMPANY SAID IT WILL USE THE NET PROCEEDS OF ABOUT 29 MILLION FOR REPAYMENT OF MOST OF ITS OUTSTANDING DEBT AND FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES INCLUDING PRODUCT AND SERVICE EXPANSION AND DOMESTIC AND INTERNATIONAL ACQUISITIONS JEFFERIES & CO IS THE UNDERWRITER 9311220167 931122 US ALCOHOL TESTING IN PACT TO SETTLE SUITS ON SECURITIES CHARGES RANCHO CUCAMONGA CALIF US ALCOHOL TESTING OF AMERICA INC SAID IT REACHED A TENTATIVE AGREEMENT TO PAY 46 MILLION TO SETTLE CLASS ACTION LAWSUITS ALLEGING SECURITIES VIOLATIONS ON THE PART OF THE COMPANY AND ITS TOP EXECUTIVES US ALCOHOL A MAKER OF ALCOHOL BREATHTESTING EQUIPMENT SAID IT REACHED THE AGREEMENT WITHOUT ADMITTING ANY WRONGDOING IT AGREED TO PAY THE CLASS 16 MILLION IN CASH AND 3 MILLION IN COMMON STOCK THE COMPANY SAID IT PLANS TO FUND THE 16 MILLION CASH PORTION THROUGH RECENTLY EXERCISED WARRANTS AND OPTIONS OF FORMER CONSULTANTS WHO AGREED TO LIQUIDATE THEIR HOLDINGS AS PART OF A SETTLEMENT OF UNRELATED LITIGATION ALSO ANNOUNCED LAST WEEK AS A RESULT THE SETTLEMENT WON'T CREATE AN ADVERSE EFFECT ON ITS OPERATING CAPITAL OR LIQUIDITY THE COMPANY SAID THE HEARING FOR COURT APPROVAL OF THE SETTLEMENT IS EXPECTED IN DECEMBER 1993 OR JANUARY 1994 9311220166 931122 POLITICS & POLICY POLITICS EXPERT ALAN BARON DIES FROM DIABETES STROKE WASHINGTON ALAN J BARON A LONGTIME MEMBER OF THE WALL STREET JOURNAL'S PANEL OF POLITICAL EXPERTS DIED FRIDAY AT HIS FALLS CHURCH VA HOME OF COMPLICATIONS FROM DIABETES AND A STROKE HE WAS 50 YEARS OLD MR BARON'S FASCINATION WITH POLITICS HE WAS A WALKING ENCYCLOPEDIA OF CAMPAIGN LORE BEGAN IN HIS NATIVE IOWA WHEN HE WAS STILL A TEENAGER A LIFELONG DEMOCRAT MR BARON WORKED FOR ADLAI STEVENSON JOHN KENNEDY EDMUND MUSKIE AND GEORGE MCGOVERN MR MCGOVERN FIRED HIM BUT THEY REMAINED FRIENDS ANYWAY A RUMPLED ROTUND FIGURE WITH LITERALLY HUNDREDS OF FRIENDS AMONG POLITICIANS AND JOURNALISTS MR BARON WAS ALWAYS BETTER WRITING AND TALKING ABOUT CAMPAIGNS THAN HE WAS IN HELPING TO MANAGE THEM FOR A DECADE HIS POLITICAL WEEKLY NEWSLETTER THE BARON REPORT WAS REQUIRED READING FOR WASHINGTON MOVERS AND SHAKERS HE BROUGHT A KEEN HISTORICAL OVERVIEW TO THE LUNCHEON SESSIONS HELD BY THE JOURNAL'S PANEL OF POLITICAL EXPERTS FREQUENTLY STEERING THE TALK BACK TO THE BASICS GOOD TIMES HE CONSTANTLY STRESSED MEAN GOOD RETURNS FOR THE DEMOCRATIC PARTY IN HIS LAST SESSION WITH THE JOURNAL PANEL IN SEPTEMBER HE SAID HE WAS FORCED TO CONCLUDE RELUCTANTLY THAT THE REPUBLICANS WOULD PICK UP TWO OR THREE SEATS IN THE SENATE AND AS MANY AS 25 IN THE HOUSE NEXT YEAR HE WAS USUALLY RIGHT ABOUT SUCH THINGS 9311220165 931122 DIVIDEND NEWS STUDENT LOAN MARKETING ASSOCIATION STUDENT LOAN MARKETING ASSOCIATION WASHINGTON RAISED ITS QUARTERLY DIVIDEND 17 TO 35 CENTS A SHARE FROM 30 CENTS PAYABLE DEC 21 TO SHARES OF RECORD DEC 7 THE COMPANY IS THE LEADING PURCHASER AND FINANCING SOURCE FOR STUDENT LOANS 9311220164 931122 FINANCING BUSINESS CAMBIOR INC CAMBIOR INC MONTREAL SAID IT WILL SELL FIVE MILLION TO 55 MILLION UNITS OF SHARES AND WARRANTS TO A GROUP OF UNDERWRITERS FOR UP TO 1136 MILLION CANADIAN DOLLARS US858 MILLION EACH UNIT PRICED AT C2065 WILL COMPRISE ONE COMMON SHARE AND ONEHALF COMMON SHARE WARRANT WITH EACH WHOLE WARRANT ENTITLING THE HOLDER TO BUY ONE COMMON SHARE FOR C25 UNTIL JUNE 30 1996 THE GOLD MINING COMPANY HAD 434 MILLION SHARES OUTSTANDING AT SEPT 30 NET PROCEEDS OF THE SALE WILL BE ADDED TO WORKING CAPITAL AND MAY BE USED TO FINANCE CURRENT DEVELOPMENT AND FUTURE ACQUISITIONS OF MINING ASSETS CAMBIOR SAID THE UNDERWRITING GROUP IS LED BY BURNS FRY LTD AND RICHARDSON GREENSHIELDS OF CANADA LTD 9311220163 931122 FINANCING BUSINESS ROGERS COMMUNICATIONS INC ROGERS COMMUNICATIONS INC TORONTO SAID IT EXPECTS TO RAISE US153 MILLION FROM AN OFFERING OF CONVERTIBLE DEBENTURES IN THE US AND ONTARIO THE DEBENTURES WHICH HAVE A YIELD TO MATURITY OF 575 WILL HAVE A STATED AMOUNT OF 225 MILLION WHEN THEY MATURE IN 2005 ROGERS SAID THE DEBENTURES ARE CONVERTIBLE INTO THE COMPANY'S CLASS B NONVOTING SHARES MERRILL LYNCH & CO WAS LEAD MANAGER ROGERS COMMUNICATIONS WHICH HAS INTERESTS IN TELECOMMUNICATIONS AND CABLE TELEVISION SAID PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL CORPORATE PURPOSES 9311220162 931122 PLY GEM EXPECTS TO MEET ESTIMATES OF ANALYSTS ON NET BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PLY GEM INDUSTRIES INC HAS SEEN THE FUTURE AND IT IS IN HOME IMPROVEMENT AT LEAST THAT'S THE VIEW OF JEFFREY S SILVERMAN CHAIRMAN AND PRESIDENT OF THE MAKER AND DISTRIBUTOR OF SPECIALTY PRODUCTS FOR THE HOMEIMPROVEMENT INDUSTRY MR SILVERMAN IN AN INTERVIEW SAID THE COMPANY SHOULD PERFORM AT LEAST IN LINE WITH ANALYSTS' EXPECTATIONS FOR THE FOURTH QUARTER AND THE YEAR WE'VE ALREADY EARNED FOR THE NINE MONTHS MORE THAN WE EARNED ALL OF LAST YEAR HE SAID THE ESTIMATES CALL FOR NET IN THE QUARTER TO RISE 17 TO ABOUT 21 MILLION OR 18 OR 19 CENTS A SHARE FROM 18 MILLION OR 16 CENTS A SHARE A YEAR AGO SALES ARE EXPECTED TO INCREASE MORE THAN 10 FROM 1518 MILLION IN THE YEARAGO QUARTER FOR THE YEAR ANALYSTS ARE LOOKING FOR PLY GEM TO EARN 75 CENTS OR A TOTAL OF ABOUT 85 MILLION WHICH WOULD BE AN INCREASE OF 35 FROM THE YEARAGO NET OF 56 CENTS A SHARE OR 63 MILLION ANALYSTS EXPECT A MORE THAN 10 INCREASE IN SALES FOR THE YEAR TO PROBABLY MORE THAN 700 MILLION FROM 6232 MILLION A YEAR AGO NEXT YEAR IS GOING TO BE DRAMATICALLY BETTER MR SILVERMAN SAID IN PART BECAUSE OF NEW PRODUCTS AND PARTLY BECAUSE OVERALL DEMAND FOR PLY GEM'S PRODUCTS IS GROWING WE ARE IN MY VIEW ON THE VERGE OF A SERIES OF HOME RUNS HE SAID THE EXECUTIVE ATTRIBUTES THE STRONG PERFORMANCE TO SEVERAL FACTORS PLY GEM'S STRATEGY OF CROSSSELLING ITS VARIOUS LINES OF PRODUCTS THE LARGEST AND FASTEST GROWING OF WHICH IS ITS WINDOWS DOORS AND SIDING SEGMENT IS PAYING OFF THE COMPANY IS ACHIEVING GREATER PENETRATION AMONG MASS MERCHANDISERS SUCH AS HOME DEPOT AMONG PLY GEM'S OTHER PRODUCTS ARE SPECIALTY WOOD PRODUCTS SUCH AS TREATED LUMBER USED TO MAKE DECKS AND BAGS USED IN LAWN AND GARDEN CARE AS WELL AS VACUUM CLEANERS PLY GEM ALSO DISTRIBUTES EXOTIC WOODS PRODUCED BY OTHER MAKERS WE'RE SELLING MORE MERCHANDISERS GREATER VOLUMES AND A GREATER ARRAY OF OUR PRODUCTS HE SAID MR SILVERMAN CITED ANOTHER EXAMPLE OF CROSSSELLING WITH ONE OF ITS LARGEST CUSTOMERS GEORGIA PACIFIC CORP PLY GEM IS STARTING TO SHIP INITIAL ORDERS OF VINYL WINDOWS TO GEORGIA PACIFIC AND IS BECOMING ITS SOLE SUPPLIER OF THE PRODUCT AND AS A RESULT RETAILERS AS WELL AS OTHER MANUFACTURERS ARE COMING TO US AND ASKING US TO MANUFACTURE PRODUCTS FOR THEM MR SILVERMAN SAID THE OVERALL HOME IMPROVEMENT MARKET GROWING AT ABOUT 7 TO 8 A YEAR IS EXPECTED TO ABOUT DOUBLE BY THE YEAR 2000 TO MORE THAN 200 BILLION FROM 110 BILLION IN 1990 HE SAID MR SILVERMAN SAID THE COMPANY'S INTERNAL GOAL IS FOR EARNINGS TO INCREASE NO LESS THAN 20 A YEAR 9311220161 931122 INTERNATIONAL TAIWAN INDUSTRIAL OUTPUT RISES TAIPEI TAIWAN TAIWAN'S INDUSTRIAL PRODUCTION INDEX ROSE 3 TO 13866 IN OCTOBER FROM THE YEAREARLIER MONTH AND WAS UP 03 FROM SEPTEMBER THE MINISTRY OF ECONOMIC AFFAIRS REPORTED THE MINISTRY ATTRIBUTED THE RISE MAINLY TO THE GROWTH IN CONSTRUCTION PROJECTS 9311220160 931122 INTERNATIONAL NEWS CORP PLAN FOR NEW SHARES BOWS TO PRESSURE SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA RUPERT MURDOCH BOWING TO PRESSURE FROM INSTITUTIONAL INVESTORS OVER A PLAN FOR A NEW CLASS OF NEWS CORP SHARES WITH SUPER VOTING RIGHTS SAID THE NEW SHARES WILL BE TRANSFERABLE WITHOUT LOSS OF EXTRA VOTING RIGHTS MR MURDOCH WHO OWNS ABOUT 30 OF THE INTERNATIONAL MEDIA GROUP LAST MONTH PROPOSED TO GIVE EXISTING SHAREHOLDERS A NEW CLASS OF SHARES THAT COULD BE WORTH 25 VOTES COMPARED WITH ONE VOTE FOR EACH ORDINARY OR COMMON SHARE NEWS CORP ORIGINALLY INTRODUCED THE PLAN SO THAT IT WOULD BE ABLE TO ISSUE LARGE PARCELS OF ORDINARY SHARES TO TELECOMMUNICATIONS COMPANIES AND OTHER CONCERNS TO ESTABLISH STRATEGIC ALLIANCES WHILE MAINTAINING MR MURDOCH'S LARGE VOTING STAKE BUT INSTITUTIONAL INVESTORS OBJECTED TO THE IDEA ON THE GROUND THAT SUCH A PLAN WOULD ENTRENCH THE CONTROL OF A SINGLE SHAREHOLDER AND EFFECTIVELY DISPOSSESS ORDINARY SHAREHOLDERS OF THEIR RIGHTS UNDER THE REVISED PLAN EACH SUPERVOTING SHARE WOULD CONFER A NUMBER OF RIGHTS WHICH ARE TRANSFERABLE THEY INCLUDE THE RIGHT TO CAST 25 VOTES ON A POLL AT A GENERAL MEETING THE RIGHT AT THE OPTION OF THE HOLDER AT ANY TIME TO CONVERT THE SHARE INTO AN ORDINARY SHARE AND SUBJECT TO AUSTRALIA'S CORPORATIONS LAW THE RIGHT TO SUCH DIVIDENDS AS MAY BE DETERMINED FROM TIME TO TIME BY THE DIRECTORS NOT TO EXCEED THE DIVIDENDS DECLARED IN THAT YEAR ON EXISTING ORDINARY SHARES UNDER ITS ORIGINAL PROPOSAL FOR THE NEW SHARES THE REQUIREMENT THAT THEY COULDN'T BE TRANSFERRED WITHOUT THE LOSS OF SUPERVOTING RIGHTS HAD THE ATTRIBUTE THAT IT WOULDN'T HAVE BEEN POSSIBLE FOR A THIRD PARTY TO ACQUIRE CONTROL OF NEWS CORP WITHOUT THE CONTROL PREMIUM BEING SHARED AMONG ALL HOLDERS OF SUPERVOTING SHARES AND ORDINARY SHARES THE COMPANY SAID NEWS CORP ADDED THAT THE SUPERVOTING SHARES ARE TO BE CONVERTIBLE INTO ORDINARY SHARES TO ENSURE THAT IF FOR SOME REASON IN THE FUTURE THE MARKET IN THE NEW SHARES IS NOT LIQUID INVESTORS CAN CONVERT THEM INTO ORDINARY SHARES THE NEW SHARES WILL BE DISTRIBUTED TO SHAREHOLDERS BY WAY OF AN ISSUE OF ONE FREE SHARE FOR EVERY 10 SHARES HELD MR MURDOCH ALSO HEEDED INVESTOR CONCERN THAT HE COULD BUILD UP A VOTING STAKE OF MORE THAN 50 AS MINORITY SHAREHOLDERS SOLD THEIR SUPER SHARES HE NOW PROPOSES A CAP ON THE AGGREGATE NUMBER OF VOTES THAT MAY AT ANY TIME BE EXERCISED BY THE HOLDERS OF ALL THE SUPERVOTING SHARES ON ISSUE THE COMPANY PROPOSES THAT THE NEW SHARES BE QUOTED ON THE AUSTRALIAN STOCK EXCHANGE AS SUPERVOTING SHARES IT IS ALSO LIKELY THAT THEIR QUOTATION WILL BE SOUGHT ON THE LONDON STOCK EXCHANGE AND AS AMERICAN DEPOSITORY SHARES ON THE NEW YORK STOCK EXCHANGE 9311220159 931122 S&P REVISES OUTLOOK OF CIGNA TO NEGATIVE LOWERS UNIT'S RATING NEW YORK STANDARD & POOR'S CORP LOWERED ITS CLAIMSPAYINGABILITY RATING OF CONNECTICUT GENERAL LIFE INSURANCE CO WHILE AFFIRMING BUT WITH A NEGATIVE OUTLOOK ITS RATINGS OF PARENT CIGNA CORP CIGNA SAID IT STRONGLY DISAGREED WITH THE DOWNGRADE AND S&P'S CONCERN ABOUT POOR PROPERTYANDCASUALTY RESULTS OUR CAPITAL RESOURCES ARE AMPLE TO FUND OUR EXISTING BUSINESSES AND TAKE ADVANTAGE OF FUTURE OPPORTUNITIES SAID CIGNA CHIEF EXECUTIVE WILSON H TAYLOR S&P LOWERED CONNECTICUT GENERAL'S RATING TO DOUBLEAPLUS FROM TRIPLEA CITING CIGNA'S 374 MILLION THIRDQUARTER OPERATING LOSS IN ITS PROPERTYANDCASUALTY BUSINESS MOREOVER S&P REVISED ITS OUTLOOK ON CIGNA TO NEGATIVE FROM STABLE ABOUT 175 BILLION OF DEBT IS AFFECTED THE PHILADELPHIA INSURANCE HOLDING COMPANY'S SENIOR DEBT CARRIES A SINGLEA RATING WHILE ITS SUBORDINATED DEBT IS RATED SINGLEAMINUS S&P SAID CONNECTICUT GENERAL IS EXPECTED TO REMAIN CIGNA'S LARGEST CONTRIBUTOR OF EARNINGS AND DIVIDENDS A KEY DEBTSERVICE SOURCE THE RATINGS SERVICE SAID THAT WHILE CONNECTICUT GENERAL'S CAPITALIZATION IS STRONG IF CIGNA CALLED UPON THE UNIT TO SUPPORT OTHER SUBSIDIARIES' CAPITAL NEEDS CONNECTICUT GENERAL WOULD HAVE LESS FLEXIBILITY TO DEAL WITH ITS OWN NEEDS S&P SAID CIGNA'S PROPERTYANDCASUALTY BUSINESS RECENTLY HAS BEEN A DRAIN ON OTHER CIGNA BUSINESSES 9311220158 931122 TRANSAMERICA PLANS TO ACQUIRE TIPHOOK UNIT PROPOSED 12 BILLION PACT WOULD MAKE COMPANY NO 2 CONTAINER LEASER BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO TRANSAMERICA CORP SAID IT SIGNED A LETTER OF INTENT TO PURCHASE THE ASSETS OF FINANCIALLY TROUBLED TIPHOOK PLC'S CONTAINER DIVISION FOR ABOUT 12 BILLION TRANSAMERICA WHICH OPERATES A CONTAINER FLEET SAID THE PRELIMINARY AGREEMENT CALLS FOR IT TO ACQUIRE TIPHOOK'S 526000 20FOOT EQUIVALENT CONTAINER UNITS THE AGREEMENT WOULD GIVE TRANSAMERICA A FLEET OF ABOUT 950000 UNITS MAKING IT THE WORLD'S SECONDLARGEST CONTAINER LEASER AFTER GENERAL ELECTRIC CO'S GENSTAR CONTAINER CORP WHICH HAS ABOUT 12 MILLION CONTAINER UNITS LONDONBASED TIPHOOK HAS BEEN STRUGGLING WITH CASHFLOW PROBLEMS AND A HEAVY DEBT LOAD PROMPTED BY ITS AGGRESSIVE EXPANSION IN THE EUROPEAN TRAILERRENTAL BUSINESS IT RECENTLY BEGAN SEEKING BUYERS FOR ITS FLEET IN AN EFFORT TO RAISE CASH TRANSAMERICA'S ACQUISITION WAS VIEWED WITH RELIEF BY SOME INDUSTRY EXPERTS WHO WORRIED THAT GENSTAR WHICH CONTROLS SOME 36 OF THE CONTAINERLEASING MARKET WOULD HAVE A LOCK ON THE INDUSTRY IF IT ACQUIRED TIPHOOK'S CONTAINERS GENSTAR OFFICIALS SAID FRIDAY THAT THEY DID BID FOR TIPHOOK'S FLEET A SPOKESMAN SAID THE COMPANY HAD NO COMMENT ON TRANSAMERICA'S PROPOSED DEAL UNDER THE PROPOSED TERMS TRANSAMERICA WOULD ASSUME ABOUT 175 MILLION OF THE TIPHOOK UNIT'S DEBT AND PAY THE REMAINDER OF THE PURCHASE PRICE IN CASH FINAL TERMS ARE BEING DISCUSSED BUT A TRANSAMERICA SPOKESMAN SAID THE COMPANIES SIGNED AN EXCLUSIVITY AGREEMENT REQUIRING ANY OTHER BIDDER TO PAY TRANSAMERICA 30 MILLION TO SUPERSEDE THE BID TRANSAMERICA SAID IT EXPECTS TO FINANCE THE ACQUISITION WITH ABOUT 1 BILLION IN DEBT AND 200 MILLION IN INTERNAL FUNDS FRANK C HERRINGER TRANSAMERICA'S PRESIDENT AND CHIEF EXECUTIVE SAID THE CONSOLIDATION OF THE CONTAINER FLEETS WOULD PERMIT SIGNIFICANT COST SAVINGS IT IS A BUSINESS WE HAVE BEEN IN FOR A LONG TIME KNOW WELL AND BELIEVE HAS SUBSTANTIAL GROWTH POTENTIAL MR HERRINGER SAID THE COMPANY'S SPOKESMAN SAID TRANSAMERICA'S CONTAINERLEASING OPERATIONS WOULD NOT CHANGE SUBSTANTIALLY THE TWO COMPANIES ARE WORLDWIDE OPERATORS ALTHOUGH TIPHOOK'S EUROPEAN OPERATIONS ARE SLIGHTLY LARGER THE SPOKESMAN SAID OUR ANTICIPATION IS THAT WE'LL SIMPLY INCORPORATE THEIR CONTAINERS INTO OUR EXISTING FLEET HE SAID TRANSAMERICA SAID IT EXPECTS TO COMPLETE NEGOTIATIONS BY YEAR'S END AND SIGN A DEFINITIVE AGREEMENT IN THE FIRST QUARTER 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 9311220157 931122 LUFTHANSA PLANS TO LEAVE HOTELMANAGEMENT FIELD BONN THE GERMAN AIR CARRIER DEUTSCHE LUFTHANSA AG WILL PULL OUT OF THE BUSINESS OF MANAGING HOTELS BUT WILL RETAIN ITS HOLDINGS IN SEVERAL HOTEL GROUPS WE WILL STILL HAVE A STAKE IN THE HOTEL BUSINESS BUT WE WILL CERTAINLY GET OUT OF THE MANAGEMENT SIDE OF IT A SPOKESMAN SAID IN THE LONGER TERM WE MIGHT REDUCE OUR HOLDINGS BECAUSE WE DON'T THINK HOTELS ARE PART OF OUR CORE BUSINESS HE ADDED LUFTHANSA HOLDS A 202 STAKE IN THE KEMPINSKI A 51 STAKE IN THE PENTA GROUP AN 11 STAKE IN THE SERENA GROUP AND A 62 STAKE IN THE PENTA HOTEL IN MUNICH AS PART OF ITS MOVE TO ALLOW OTHERS TO MANAGE THE HOTELS LUFTHANSA WILL TRANSFER ITS HOTEL HOLDINGS TO LUFTHANSA COMMERCIAL HOLDING FROM LUFTHANSA HOTELGESELLSCHAFT LUFTHANSA GERMANY'S FLAGSHIP AIR CARRIER IS 54 STATEOWNED 9311220156 931122 REPUBLIC NEW YORK DROPS OFFER FOR GREEN POINT BANK NEW YORK REPUBLIC NEW YORK CORP WITHDREW ITS 250 MILLION OFFER FOR GREEN POINT SAVINGS BANK CLAIMING THAT STATE REGULATORS HAD MADE IMPOSSIBLE AN EFFECTIVE PROXY SOLICITATION EARLIER THIS MONTH REPUBLIC OFFERED GREEN POINT DEPOSITORS 100 MILLION THE EQUIVALENT OF A 2 INTEREST PAYMENT ON 56 BILLION IN DEPOSITS AFTER THE BOARD OF GREEN POINT REJECTED THE ORIGINAL OFFER REPUBLIC SWEETENED ITS BID BY OFFERING DEPOSITORS 250 MILLION GREEN POINT EARLIER ANNOUNCED PLANS TO CONVERT TO STOCK OWNERSHIP THROUGH AN INITIAL PUBLIC OFFERING OF 537 MILLION SHARES PRICED BETWEEN 1110 AND 15 EACH EXPECTED BY DEC 15 MR KEIL'S LETTER CAME AFTER THE BANKING DEPARTMENT SAID THAT ALTHOUGH IT IS LEGAL FOR A BANK TO OFFER A SPECIAL INTEREST PAYMENT REPUBLIC HAD NO LEGAL AUTHORITY TO MAKE AN OFFER DIRECTLY TO DEPOSITORS AND SHOULDN'T HAVE ISSUED A NEWS RELEASE DETAILING ITS OFFER IN SPITE OF THE WITHDRAWAL OF THE 250 MILLION OFFER REPUBLIC SAID IT WILL CONTINUE TO RESERVE ALL OTHER LEGAL RIGHTS AND LAWFUL COURSES OF ACTION IN ITS PURSUIT OF GREEN POINT 9311220154 931122 BEER BROUHAHA EXISTING DISTRIBUTORS ARE BEING SQUEEZED BY BREWERS RETAILERS BIGGEST DISCOUNTERS CHAINS SEEK WAYS TO ELIMINATE MIDDLEMAN' WHOLESALERS TREND WORRIES LITTLE GUYS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL PLEASANTVILLE NJ ONE DAY FIVE STOPS ROBERT BEALE MERCHANDISING MANAGER FOR COORS BEER DISTRIBUTOR KRAMER BEVERAGE CO CHATS WITH CUSTOMERS AS HE REPLACES BANNERS STRAIGHTENS PALLETS OF BEER CASES ON DISCOUNTSTORE FLOORS AND PUTS UP TABLE TENTS AND POSTERS AT BARS ACROSS THE COUNTY AT LACOSTA'S LIQUOR STORE IN SEA ISLE CITY KRAMER SALES REPRESENTATIVE BETSY LUDMAN CHEERFULLY FULFILLS A REQUEST FOR A COORS EXTRA GOLD KEG SIGN TAKING DOWN A COMPETING ANHEUSERBUSCH COS SIGN IN THE PROCESS AND JERRY SANFORD ONE OF KRAMER'S DRAFT TECHNICIANS STOPS AT THE GOOD GUY'S PUB AT A QUIET RURAL HIGHWAY INTERSECTION HERE TO BANTER BEHIND THE BAR CLEAN DRAFTBEER LINES AND SHINE LEVERS ON THE COORS TAPS IT'S ANOTHER DAY OF DETAILS ON THE FRONT LINES OF THE NATION'S BEER WARS WHILE NEW BRANDS AND GLITZY ADVERTISING CAMPAIGNS GRAB ATTENTION IT IS THE WHOLESALE DISTRIBUTORS LIKE KRAMER THAT MOBILIZE OVER PLACEMENTS OF TAP HANDLES AND INCHES OF PRIME SHELF SPACE LOCAL PROMOTIONS AND SPECIAL SERVICES TO CUSTOMERS AND AS OPERATIVES IN THE FIELD THEY GATHER CRUCIAL MARKET INTELLIGENCE TO FILTER BACK TO THE BIG BREWERIES' MARKETING GURUS THIS DETAIL PATROL IS CRITICAL TO SMALL BARS AND RETAILERS BUT IT NO LONGER CAN BE TAKEN FOR GRANTED THE NATION'S BEER DISTRIBUTORS NOW ARE NOT JUST JOSTLING ONE ANOTHER FOR SHELF SPACE THEY ARE ALSO PITTED AGAINST THEIR OWN BREWERS AND RETAILERS FOR SURVIVAL TODAY'S DEEPDISCOUNT WAREHOUSE CLUBS AND BIG GROCERY CHAINS EXERT CONSIDERABLE MARKETPLACE LEVERAGE AS THEY PRESSURE BREWERS TO CUT THEIR COSTS THE MIDDLEMEN THE WHOLESALE DISTRIBUTORS ARE OBVIOUS TARGETS THE US BEER DISTRIBUTION SYSTEM NOW IS UNDER ATTACK LEGALLY POLITICALLY AND ECONOMICALLY DISTRIBUTORS' ONLY HOPE IS THAT LEGISLATORS IN FLORIDA AND A COURT IN SAN FRANCISCO BELIEVE THE CURRENT SYSTEM IS INTEGRAL TO MAINTAINING A VARIETY OF RETAIL OUTLETS FOR CONSUMERS ACCORDING TO INDUSTRY OBSERVERS THE ALTERNATIVE IS THAT WE ALL GO THE SAM'S DIRECTION SAYS CHARLES KRAMER OWNER OF KRAMER BEVERAGE REFERRING TO WALMART STORES INC'S DISCOUNTCLUB STORES IT WOULD MEAN LOWER PRICES SURE BUT FEWER AND FEWER RETAIL OUTLETS THE THREETIER SYSTEM OF BEER MAKING AND MARKETING BREWER DISTRIBUTOR AND RETAILER WAS CREATED BY CONGRESS IN 1933 TO KEEP BREWERS FROM GAINING CONTROL OVER THE SALE OF BEER TO THE PUBLIC AS THEY DID BEFORE PROHIBITION THE MANDATED MIDDLEMAN ROLE LED TO THE ESTABLISHMENT OF TODAY'S 3000 DISTRIBUTORS MOSTLY SMALL BUSINESSMEN WITH FEWER THAN 30 EMPLOYEES WHICH MANAGE THE 24 BILLION BUSINESS OF DELIVERING BEER A BREWER MAY LEGALLY OWN A DISTRIBUTOR AND SOME DO BUT DISTRIBUTORS CANNOT OWN RETAILERS TODAY BATTLES TO CHANGE THAT SYSTEM ARE BEING FOUGHT IN CALIFORNIA AND FLORIDA TRENDSETTING STATES IN THE BEER BUSINESS WHERE BREWERS SEEKING TO CUT COSTS IN A STAGNANT MARKET ARE BYPASSING THEIR REGULAR DISTRIBUTORS WHICH SERVE SMALL AS WELL AS BIG CUSTOMERS AND BEGIN TO PROVIDE BEER EXCLUSIVELY TO BIG RETAILERS THROUGH SPECIAL DISTRIBUTORS THE NEXT STEP IF THE COURTS ALLOW COULD BE DIRECT DELIVERIES FROM BREWERS TO RETAILERS IT'S AN ANTIQUATED SYSTEM ARGUES DONALD BEAVER PRESIDENT OF THE CALIFORNIA GROCERS ASSOCIATION EVENTUALLY IT MUST BE CHANGED FOR MR KRAMER 51 WHO RUNS KRAMER BEVERAGE WITH HIS WIFE LYNN 50 THESE DEVELOPMENTS HINT LIKE FARAWAY THUNDER OF AN APPROACHING STORM WHILE HIS BIG CUSTOMERS HAVE YET TO BYPASS HIM HE KNOWS THEY WOULD IF GIVEN THE CHANCE THE BIG RETAILER COULD LIVE WITHOUT THE WHOLESALERS HE WARNS BUT NO ONE ELSE COULD IF THE BIG ACCOUNTS DISAPPEARED I DON'T KNOW HOW I COULD SURVIVE IF HE DOESN'T THEN NEITHER WILL HIS SMALLEST CUSTOMERS BARS TAVERNS AND RESTAURANTS VENUES WHOSE DELIVERIES LOOK MORE LIKE TRUNKLOADS THAN TRUCKLOADS WITH THEIR VOLUME OF BUSINESS BIG RETAILERS HAVE THE ECONOMIC POWER TO COMMAND DIRECT DELIVERIES FROM BREWERS AT HEAVILY DISCOUNTED PRICES IF THAT BECOMES CLEARLY LEGAL LINDA SCANLON MANAGER OF THE BAYSIDE DEAUVILLE INN NEAR ATLANTIC CITY NJ DOESN'T WHO WOULD DELIVER TO ME IF I ONLY NEED TWO KEGS A WEEK SHE ASKS FURTHER IF DIRECT DELIVERIES FROM BREWERS TO RETAILERS HELP CUT THE BIG PACKAGE STORES' COSTS AND THOSE SAVINGS ARE PASSED ON TO CUSTOMERS MR KRAMER AND INDUSTRY EXPERTS WONDER WHETHER ENOUGH SMALLER STORES WOULD SURVIVE TO KEEP THE DISTRIBUTION BUSINESS ALIVE THE NEIGHBORHOOD PACKAGE STORE HAS AS GREAT A FUTURE AS THE FAMILY FARMER SAYS MARK RODMAN A BOSTON ATTORNEY AND INDUSTRY CONSULTANT THE CURRENT THREETIER SYSTEM HAS ITS OBVIOUS FAILINGS THE PRACTICE OF LOADING BEER ONTO BREWERY TRUCKS UNLOADING IT AT DISTRIBUTOR WAREHOUSES PUTTING IT BACK ON DISTRIBUTOR TRUCKS AND THEN SENDING IT OUT TO RETAILERS MAY BE TOO COSTLY IN TODAY'S PENNYPINCHING RETAIL ENVIRONMENT FOR CUSTOMERS WHO CAN BUY ENTIRE TRUCKLOADS DIRECT DELIVERIES FROM THE BREWERY MAKE MORE SENSE COMPUTERS ABLE TO TRANSMIT RETAIL INVENTORY DATA TO BREWERS MAKE THE SALES AND INVENTORYTRACKING FUNCTIONS OF THE DISTRIBUTOR SUPERFLUOUS AS WELL AT LEAST FOR THE BIG RETAILERS MORE AND MORE RETAILERS ARE ORDERING PRIVATELABEL BEERS AND DON'T NEED ANY MARKETING AND INVENTORY HELP FROM WHOLESALERS TO SELL THEM THE BREWERS EACH HAVE HUNDREDS OF DISTRIBUTORS GRANTED EXCLUSIVE TERRITORIES AS SMALL AS A SINGLE TOWN OR AS BIG AS SEVERAL COUNTIES EXCEPT IN INDIANA THE ONLY STATE WHERE EXCLUSIVE TERRITORIES ARE PROHIBITED FOR DISTRIBUTORS WITH POPULAR BRANDS LIKE COORS EXCLUSIVITY LONG MADE LIFE EASY WITH NO PLACE ELSE TO GO FOR BEERS THAT WERE IN DEMAND RETAILERS WERE FORCED TO PAY THE WHOLESALERS' PRICE AND TAKE WHATEVER SERVICE WAS OFFERED FOR YEARS FOR EXAMPLE NEW YORK DISTRIBUTORS PILED BEER ON THE SIDEWALKS OUTSIDE CUSTOMERS' STORES REFUSING TO HAUL IT INSIDE RETAILERS SAY BUT WITH AS MUCH AS 90 OF BEER BEING SOLD AT DISCOUNT IN SOME MARKETS BEER HAS BECOME MORE LIKE A COMMODITY AND BRANDS HAVE BECOME LESS IMPORTANT DISTRIBUTORS HAVE BEEN FORCED TO MAKE MORE AND MORE CONCESSIONS ON PRICE AND SERVICE AS A RESULT PROFITS AS A PERCENTAGE OF SALES DECLINED TO 16 IN 1990 THE MOST RECENT FIGURES AVAILABLE FROM 25 IN 1982 ACCORDING TO BARSBY & ASSOCIATES A BEERINDUSTRY MARKETRESEARCH FIRM IN MOLALLA ORE A CRAZY QUILT OF STATE LAWS HINDERS DISTRIBUTORS FROM BANDING TOGETHER INTO MORE COSTEFFICIENT NATIONAL NETWORKS SOME STATES WON'T ALLOW DISTRIBUTORS TO OFFER CUSTOMERS VOLUME DISCOUNTS THE RULES GOVERNING CONTESTS PROMOTIONS ADVERTISING AND BOTTLE DEPOSITS DIFFER FROM STATE TO STATE MAKING MULTISTATE DISTRIBUTORSHIPS A LOGISTICAL NIGHTMARE FORCED TO COMPETE WITH THE HUGE MARKETING BUDGETS OF INDUSTRY LEADERS ANHEUSERBUSCH ADOLPH COORS CO AND MILLER BREWING CO SMALLER BREWERS SEEK OUT WAYS TO CUT COSTS IN ORDER TO KEEP PRODUCT PRICES DOWN THUS STRUGGLING G HEILEMAN BREWING CO WHICH PRODUCES A HOST OF LARGELY REGIONAL BEERS AND S&P CO BREWER OF DECLINING OLDLINE BRANDS PABST AND FALSTAFF DECIDED TO BYPASS THEIR REGULAR DISTRIBUTORS IN CALIFORNIA AND SHIP TO THEIR BIGGEST CUSTOMERS CHAINS SUCH AS SAFEWAY VON'S AND LIQUOR BARN THROUGH SPECIAL DISTRIBUTORS THAT SELL BEER ONLY TO LARGE RETAILERS AND AT A SHARP DISCOUNT LUTZ ISSLEIB EXECUTIVE VICE PRESIDENT OF S&P SAID THAT THE CHANGE IN PABST AND FALSTAFF DISTRIBUTION IN CALIFORNIA WASN'T HIS IDEA BUT WAS THE BRAINCHILD OF A DISTRIBUTOR BUT HE ISN'T ARGUING WITH THE RESULTS SALES OF PABST IN CALIFORNIA HAVE GONE FROM 6000 BARRELS IN 1986 TO 256000 BARRELS IN 1993 LARGELY BECAUSE OF THE DISTRIBUTOR'S SALES TO CHAIN STORES HE SAYS MIKE SADLER MERCHANDISING MANAGER FOR LIQUOR BARN INC SAN FRANCISCO SAYS THAT BECAUSE OF HEILEMAN'S PROGRAM HE WAS ABLE THIS SUMMER TO REDUCE THE PRICE OF THE HENRY WEINHARD BRAND TO 599 A 12PACK FROM 750 OR 8 IT'S PRETTY SIMPLE EXPLAINS MR SADLER YOU'RE LOOKING FOR A COMPETITIVE EDGE A WAY TO GROW YOUR PIECE OF A SHRINKING PIE AND THE BREWERS SAW AN OPPORTUNITY TO PROVIDE US WITH A BETTER PRICE BUT THE BREWERS' REGULAR DISTRIBUTORS SAY THESE SPECIAL DISTRIBUTORS ARE A SHAM A WAY TO GET AROUND THE LETTER OF THE LAW MANDATING SEPARATE DISTRIBUTORS TWENTYTWO HEILEMAN DISTRIBUTORS HAVE FILED SUIT AGAINST THE BREWER IN A FEDERAL COURT IN SAN FRANCISCO ALLEGING THAT THE BREWER ABROGATED THEIR EXCLUSIVE CONTRACTS TO DELIVER BEER HEILEMAN WON'T COMMENT ON THE SUIT SIMILARLY SOME LARGE RETAIL CHAINS IN FLORIDA HAVE CONTRACTED WITH BREWERS FOR BEER PACKAGED UNDER PRIVATE LABELS TO BE DELIVERED THROUGH SPECIAL DISCOUNT DISTRIBUTORS KNOCKING THE BREWERS' REGULAR DISTRIBUTORS OUT OF THE LOOP THE DISTRIBUTORS' STATE TRADE GROUP IN RESPONSE UNSUCCESSFULLY SOUGHT LEGISLATION BARRING SUCH DELIVERIES FROM BREWERS TO RETAIL CHAINS WE GOT STEPPED ON SAYS BUDDY GRIDDLEY PRESIDENT OF THE FLORIDA BAR INDUSTRY ASSOCIATION I'M NOT SURE WHERE WE'RE HEADED NOW WHERE THEY'RE HEADED COULD BE FOR RADICAL CHANGE IN SPEECHES AND NEWSLETTERS ALL THE MAJOR BREWERS HAVE WARNED THEIR DISTRIBUTORS THAT THEY ARE UNDER PRESSURE TO DELIVER BEER DIRECTLY TO BIG RETAILERS THOSE RETAILERS HAVE A GREAT DEAL OF POWER IN CALIFORNIA FOR EXAMPLE SIX CHAINS CONTROL 40 OF RETAIL BEER SALES THE TRADE PUBLICATION BEER MARKETER'S INSIGHTS REPORTS INDUSTRY EXPERTS SAY THAT IF THE COURT IN CALIFORNIA UPHOLDS HEILEMAN'S NEW DELIVERY SYSTEM THE PRACTICE SURELY WILL SPREAD THE MAJOR BREWERS KNOW THEY'VE GOT TO CHANGE SAYS MR BEAVER OF THE CALIFORNIA GROCERS GROUP IT'S HAPPENING TODAY IN ALL OTHER PRODUCTS COORS'S 24 DISTRIBUTION CENTERS AROUND THE COUNTRY ARE PERFECTLY SUITED TO DELIVER DIRECTLY TO RETAILERS SAYS MR RODMAN THE INDUSTRY CONSULTANT ALL IT WOULD TAKE TO START THE TREND ADDS ED PETERSON GENERAL MANAGER OF COORS'S DENVER DISTRIBUTOR IS FOR ONE OF THE BIG BREWERS TO LOSE SIGNIFICANT MARKET SHARE IN THE PIVOTAL CALIFORNIA OR FLORIDA TERRITORIES TO A SMALLER COMPETITOR'S DISCOUNTDISTRIBUTOR SYSTEM FOR MR KRAMER THE POSSIBILITY OF LOSING THE BUSINESS FOUNDED BY HIS GRANDFATHER IN 1924 BRINGS BACK UNPLEASANT MEMORIES THE DISTRIBUTOR WHICH EMPLOYS 86 PEOPLE FULL TIME AT A BIG METAL WAREHOUSE IN THIS TOWN JUST WEST OF ATLANTIC CITY SAW HIS BUSINESS NEARLY DIE ONCE BEFORE OVER PRICE WARS REGIONAL BEERS SUCH AS PIELS BALLANTINE AND HEILEMAN PRODUCTS WENT INTO SHARP DECLINE IN THE 1980S LEAVING ANHEUSERBUSCH AND MILLER A DIVISION OF PHILIP MORRIS COS AS THE INDUSTRY LEADERS DISTRIBUTORS WERE AFFECTED ACCORDINGLY AND KRAMER HANDLED REGIONALS SO SEVEN YEARS AGO MR KRAMER WAGED A YEARLONG LOBBYING CAMPAIGN TO WIN AN EXCLUSIVE FRANCHISE FROM COORS WHICH WAS EXPANDING SALES INTO NEW JERSEY HIS APPLICATION TO THE GOLDEN COLO BREWER INCLUDED PHOTOS OF 12 OF HIS BEST TRUCKS HE HID THE CLUNKERS AND OF HIS 16YEAROLD SON MARK WHOM HE TOUTED AS THE FOURTH GENERATION OF DISTRIBUTORS IN THE KRAMER FAMILY KRAMER BEVERAGE GOT THE FRANCHISE WITHOUT COORS MR KRAMER SAYS WE WOULDN'T HAVE LASTED FIVE YEARS NOW HE HAS DOUBLED THE SIZE OF HIS WAREHOUSE AND SELLS MORE THAN THREE MILLION CASES OF BEER A YEAR WELL ABOVE DISTRIBUTORS' NATIONAL AVERAGE OF LESS THAN A MILLION CASES WHILE KRAMER CUSTOMERS WERE GLAD TO GET COORS PRODUCTS THEY HAVEN'T ALL BEEN PLEASED WITH THE DISTRIBUTOR IT WOULD BE NICE IF YOU COULD BUY FROM ANOTHER WHOLESALER GROUSES RUSSELL WADDELL THE UNHAPPY OWNER OF CHERRY HILL LIQUORS IN CHERRY HILL NJ OVER THE BUSY FOURTH OF JULY WEEKEND MR WADDELL NOTES KRAMER DIDN'T MAKE ITS USUAL THURSDAY DELIVERY DEADLINE IN FACT THE BEER DIDN'T ARRIVE UNTIL THE FOLLOWING WEDNESDAY AND MR WADDELL RAN OUT OF BEER DURING ONE OF THE BIGGEST BEERDRINKING WEEKENDS OF THE YEAR DOESN'T HE UNDERSTAND I'M A CUSTOMER OF HIS HE'S NOT A CUSTOMER OF MINE MR WADDELL FUMES WILLIAM CRITCHFIELD KRAMER'S GENERAL MANAGER SAYS ALL DISTRIBUTORS HAD TROUBLE KEEPING UP WITH THE HOLIDAY DEMAND ALTHOUGH HE CONCEDES THAT MOST RETAILERS GOT BETTER SERVICE THAN MR WADDELL DID MR WADDELL'S COMPLAINTS NOTWITHSTANDING A LARGE PART OF KRAMER BEVERAGE EMPLOYEE HOURS GOES TO KEEPING SMALL CUSTOMERS LIKE HIM HAPPY ATTENDING TO THE MINUTIAE THAT OCCUPY A DISTRIBUTOR'S LIFE MR CRITCHFIELD ALSO POINTS OUT THAT SMALL RETAILERS LOOKING TO BUY DIRECTLY FROM BREWERIES WOULD FIND THAT BREWERS DON'T OFFER THE CREDIT TERMS DISTRIBUTORS DO AND BREWERS DON'T FIND IT ECONOMIC TO DELIVER PARTIAL TRUCKLOADS BUT KRAMER'S BIGGEST CUSTOMERS DON'T NEED THAT KIND OF ATTENTION AND IT WILL BE MUCH HARDER TO HANG ONTO THEM IF THEY CAN CHOOSE DIRECT DELIVERIES MR CRITCHFIELD CITES CANAL'S DISCOUNT LIQUORS IN WILLIAMSTOWN PART OF A LARGE LOCAL CHAIN AS AN EXAMPLE THE STORE SELLS STRICTLY ON PRICE ESCHEWING THE PROMOTIONAL DISPLAYS DISTRIBUTORS LIKE KRAMER PROVIDE AND BECAUSE OF CANAL'S SIZE KRAMER FREQUENTLY PUTS UP WITH MINOR INDIGNITIES ONE DAY THE KRAMER DRIVER SAT BEHIND A CANAL'S STORE FOR FOUR HOURS WAITING FOR STORE EMPLOYEES TO UNLOAD THE TRUCK THE CUSTOMER EARNS A FORKLIFT DISCOUNT FOR DOING THE UNLOADING BUT MR CRITCHFIELD SAYS THE DISCOUNT AGREEMENT CALLS FOR CUSTOMER UNLOADING TO BE TIMELY TO US THAT'S 45 MINUTES MR CRITCHFIELD SAYS HOW EAGER ARE BREWERS TO DUMP THEIR DISTRIBUTORS EXECUTIVES AT MOST BREWERIES DECLINE TO BE INTERVIEWED ON THE SUBJECT SAYING THEY DON'T WANT TO TAKE SIDES BUT W LEO KIELY PRESIDENT OF COORS SAYS HIS COMPANY ISN'T PLANNING ANY DIRECT DELIVERIES STILL HE CALLS THE CALIFORNIA EXPERIMENT BY HEILEMAN AND S&P A WAKEUP CALL TO THE INDUSTRY THAT WE'D BETTER INNOVATE WHOLESALERS DO A GOOD JOB OF SERVING BARS AND RESTAURANTS BUT WE REALLY HAVEN'T ADDRESSED THE ISSUE OF HOW TO SERVICE THE LARGE RETAILERS INDEED AT MEETINGS WITH THEIR DISTRIBUTORS BREWERS ARE SOUNDING LIKE THEY ARE THE ONES UNDER ATTACK CAUGHT BETWEEN LOYALTY TO THEIR DISTRIBUTORS AND THE NEED TO PLEASE THE BIG RETAILERS JACK MACDONOUGH CHAIRMAN OF MILLER RECENTLY PLEDGED HIS SUPPORT FOR THE THREETIER SYSTEM AT A MEETING WITH MILLER WHOLESALERS IN FLORIDA HE WARNED HOWEVER THAT RETAILERS WERE PRESSURING BEER MAKERS TO CHANGE WE NEED THE THREETIER SYSTEM HE SAID ACCORDING TO A REPORT IN BEER MARKETER'S INSIGHTS I ONLY WISH WE COULD COME UP WITH A WAY OF SUPPORTING IT MORE STRONGLY WITHOUT GETTING OUR RETAILERS ALMOST BOYCOTTING US IF WE DO 9311220153 931122 TECHNOLOGY & HEALTH BIOCRAFT SEEKS TO RESOLVE FDA CONCERNS ABOUT QUALITY CONTROL TESTING METHODS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL BIOCRAFT LABORATORIES INC A MAKER OF GENERIC DRUGS IS HOLDING DISCUSSIONS WITH THE FOOD AND DRUG ADMINISTRATION TO RESOLVE COMPLIANCE ISSUES INVOLVING ITS MANUFACTURING PRACTICES BIOCRAFT CONFIRMED IT RECEIVED AN INSPECTION REPORT FROM THE FDA ALLEGING CERTAIN DEFICIENCIES IN ITS MANUFACTURING AFTER THE FEDERAL AGENCY HAD COMPLETED A SERIES OF INSPECTIONS BASED IN FAIRLAWN NJ BIOCRAFT IS THE LATEST OF SEVERAL DRUG COMPANIES WHOSE MANUFACTURING PRACTICES HAVE BEEN QUESTIONED BY THE FDA FOR BIOCRAFT HOWEVER THE TIMING OF THIS PROBE COULDN'T BE WORSE BECAUSE BIOCRAFT HAS PUBLICLY ANNOUNCED IT IS EXPLORING OPTIONS TO ENHANCE THE VALUE OF THE COMPANY INCLUDING A MERGER OR A SALE INDIVIDUALS WHO HAVE SEEN THE NOTICE SAY IT IS LENGTHY BY FDA STANDARDS THEY SAY THE FDA CRITICIZED BIOCRAFT FOR WHAT IT TERMED DEFICIENCIES IN THE COMPANY'S QUALITY CONTROL AND TESTING PROCEDURES IN ITS NEW JERSEY MANUFACTURING FACILITY I DON'T BELIEVE THERE ARE ANY EXTREMELY SERIOUS PROBLEMS SAID HEMANT SHAH A GENERIC DRUG ANALYST WHO IS FAMILIAR WITH THE NOTICE HOWEVER MR SHAH SAID THAT BECAUSE OF THE FDA NOTICE BIOCRAFT ISN'T GETTING APPROVALS FOR NEW PRODUCTS OR BEING SOLD UNTIL THINGS ARE RESOLVED WITH THE FDA THE COMPANY HAS MORE THAN A DOZEN DRUGS AWAITING FDA APPROVAL HAROLD SNYDER CHAIRMAN AND CHIEF EXECUTIVE OF BIOCRAFT SAID THAT EVERYONE IN THE DRUG INDUSTRY GETS NEGATIVE INSPECTION REPORTS FROM THE FDA THEY COME IN AND TRIP ON A WIRE AND ISSUE A REPORT HE SAID MUCH OF IT IS SUBJECTIVE NOT SUBSTANTIVE HE SAID ADDING AS FAR AS WE'RE CONCERNED THE COMPANY WILL CONTINUE TO OPERATE PROFITABLY WITH NO IMPACT ON OUR CURRENT PRODUCTS BERYL SNYDER THE COMPANY'S GENERAL COUNSEL AND MR SNYDER'S DAUGHTER SAID THE FDA ACTION DOESN'T MEAN OUR PRODUCTS ARE UNSAFE SHE ACKNOWLEDGED HOWEVER THAT NEW DRUG APPROVALS MAY BE DELAYED AN FDA SPOKESMAN DECLINED TO COMMENT WORD OF BIOCRAFT'S POTENTIAL PROBLEMS BEGAN LEAKING INTO THE STOCK MARKET ON FRIDAY THE COMPANY'S SHARES CLOSED FRIDAY AT 2950 DOWN 1625 IN NEW YORK STOCK EXCHANGE TRADING MR SNYDER AND HIS FAMILY OWN MORE THAN HALF THE COMPANY'S 141 MILLION SHARES OUTSTANDING ON THURSDAY DAVID SAKS AN ANALYST AT GRUNTAL & CO LOWERED HIS RATING FOR BIOCRAFT TO NEUTRAL FROM OUTPERFORM CITING FDA COMPLIANCE ISSUES MR SAKS LOWERED HIS FISCAL 1994 EARNINGS ESTIMATE FOR BIOCRAFT TO 75 CENTS A SHARE FROM 130 IN THE FISCAL YEAR ENDING MARCH 31 1993 BIOCRAFT HAD NET INCOME OF 59 MILLION OR 42 CENTS A SHARE ON REVENUE OF 1266 MILLION THE FDA HAS CRACKED DOWN ON MANUFACTURINGRELATED PROBLEMS AT SEVERAL BIG DRUG MAKERS RECENTLY IN AUGUST WARNERLAMBERT CO SIGNED A CONSENT DECREE WITH THE FDA AND AGREED TO STOP MAKING CERTAIN DRUGS UNTIL IT COULD DEMONSTRATE IMPROVED MANUFACTURING PRACTICES AT THE TIME OF THE CONSENT DECREE THE COMPANY SAID IT WOULD HAVE SOME 150 MILLION IN SALES LOSSES THIS YEAR BECAUSE OF DISCONTINUATION OF SOME DRUGS AND INTERRUPTIONS IN DISTRIBUTION BARR LABORATORIES INC CIRCA PHARMACEUTICALS INC FORMERLY BOLAR PHARMACEUTICALS CO AND PAR PHARMACEUTICAL INC WHICH IS OWNED BY PHARMACEUTICAL RESOURCES INC HAVE ALSO HAD REGULATORY PROBLEMS OR DISPUTES WITH THE FDA IN RECENT YEARS 9311220152 931122 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GRUPO MEXICANO DE DESAROLLO SA A GLOBAL OFFERING OF 8333333 UNITS OF 24 TO 26 EACH OF ONE SERIES B AND ONE SERIES L SHARE VIA BEAR STEARNS & CO NAUTICA ENTERPRISES INC AN OFFERING OF 1950000 COMMON SHARES VIA GOLDMAN SACHS & CO AND MONTGOMERY SECURITIES SOURCE ONE MORTGAGE SERVICES CORP A UNIT OF FUND AMERICAN ENTERPRISES HOLDING INC AN OFFERING OF 4 MILLION SHARES OF CUMULATIVE PREFERRED STOCK SERIES A VIA LEHMAN BROTHERS 9311220151 931122 FOREIGN EXCHANGE DOLLAR LIKELY TO KEEP RISING AS TRADERS SEE FEW REASONS TO BUY OTHER CURRENCIES BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK CURRENCY PLAYERS SEE FEW COMPELLING REASONS TO BUY DOLLARS AS 1993 ENDS BUT THEY SEE EVEN FEWER REASONS TO BUY ANY OTHER CURRENCY THE RESULT THE DOLLAR SHOULD MEANDER HIGHER OVER THE NEXT 1 1/2 MONTHS ITS GAINS CAPPED BY CAPITAL FLOWS OUT OF THE US AND ECONOMIC AND POLITICAL CALENDARS EMPTY OF MARKETMOVING EVENTS THE NARROWING INTERESTRATE GAP BETWEEN THE US AND GERMANY AND THE PERCEPTION THAT THE US ECONOMY IS OUTPERFORMING THOSE OF ITS COUNTERPARTS ARE MOTIVATING DOLLAR BULLS TRADERS AND ANALYSTS SAY THE ECONOMY IN CONTINENTAL EUROPE IS IN PRETTY BAD SHAPE AND THE JAPANESE ARE LOOKING AT BASICALLY FLAT GROWTH SAYS RICHARD BLOCK SENIOR CURRENCY DEALER AT HARRIS TRUST & SAVINGS BANK IN CHICAGO BY CONTRAST US ECONOMIC GROWTH ISN'T EARTHSHATTERING BUT IT'S POSITIVE THAT'S PROMPTING INVESTORS TO BET THAT THE DOLLAR WILL CONTINUE TO CLIMB OUR CUSTOMERS ARE NET DOLLARBUYERS SAYS STEVEN GEOVANIS MANAGING DIRECTOR FOR FOREIGN EXCHANGE AT MERRILL LYNCH DEBT MARKETS GROUP THE DOLLAR TRADED AT 17146 MARKS AND 10845 YEN LATE FRIDAY IN NEW YORK UP FROM 16840 MARKS AND 10575 YEN AT THE END OF THE PREVIOUS WEEK ABOUT MIDDAY ON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10855 YEN AND AT 17165 MARKS AND AS INTEREST RATES IN GERMANY FALL IT'S LESS EXPENSIVE FOR DEALERS TO BET ON THE DOLLAR LAST WEEK THE BUNDESBANK ANNOUNCED A 625 FIXED REPO RATE A 15BASISPOINT DROP FROM THE LAST FIXED RATE A BASIS POINT IS 1/100TH OF A PERCENTAGE POINT SECURITIES REPURCHASE AGREEMENTS ARE THE CENTRAL BANK'S PRIMARY INSTRUMENT FOR INFLUENCING THE MONEY MARKET THEY'RE NOT CHARGING YOU A LOT TO HOLD DOLLARS ANY MORE SAYS CHESTER RUBEN SENIOR FOREIGNEXCHANGE TRADER AT CONTINENTAL BANK IN CHICAGO BUT WHILE THE US CURRENCY LOOKS APPEALING IN CONTRAST TO GERMANY'S AND JAPAN'S MARKET PLAYERS' ENTHUSIASM IS TEPID ANALYSTS FEAR THAT THE US ECONOMY IN THE FIRST QUARTER OF 1994 WILL CHOKE ON THE COMBINED IMPACT OF HIGHER TAXES AND UNCERTAINTY ABOUT THE COSTS THAT NEW HEALTHCARE LEGISLATION MIGHT IMPOSE A SLOWER PACE OF GROWTH WOULD POSTPONE MONETARY TIGHTENING AND KEEP THE USEUROPE RATE GAP WIDER THAN IT WOULD BE OTHERWISE A LOT OF PEOPLE ARE EXPECTING GROWTH TO SLOW SAYS MR BLOCK OF HARRIS BANK UNCERTAIN ABOUT THE MAGNITUDE OF ADDITIONAL HEALTHCARE COSTS BUSINESSES MAY BE CAUTIOUS ABOUT HIRING HE ADDS AND AS INVESTORS CONCLUDE THAT THE US BOND RALLY IS OVER CAPITAL IS LIKELY TO KEEP FLOWING OUT OF THE US AND TO EUROPE TRADERS SAY THROUGH SEPTEMBER NET INFLOWS INTO GLOBAL BOND FUNDS AMOUNTED TO 544 BILLION COMPARED WITH 136 BILLION DURING THE YEAREARLIER PERIOD ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A MUTUALFUND TRADE GROUP BY CONTRAST US INVESTMENT IN GOVERNMENT BOND FUNDS DECLINED TO 1265 BILLION FROM 1889 BILLION ALTHOUGH DOLLARBASED INVESTORS OFTEN HEDGE PURCHASES OF FOREIGN SECURITIES THE FLIGHT TO HIGHERYIELDING NONUS BONDS STILL CREATES DEMAND FOR FOREIGN CURRENCIES AT THE EXPENSE OF THE DOLLAR NOTES MR BLOCK IN THAT ENVIRONMENT DEALERS AREN'T LIKELY TO BID THE DOLLAR SHARPLY HIGHER WITHOUT STARTLING NEWS ALTHOUGH ANALYSTS CONSIDER A CONCLUSION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MILDLY BULLISH FOR THE DOLLAR THEY DOUBT THAT IT WILL HAVE THE IMMEDIATE ECONOMIC IMPACT NEEDED TO PROMPT DEALERS TO SCURRY TO BUY OR SELL DOLLARS ON THE OUTCOME 9311220150 931122 POLITICS & POLICY STATEMENTS BY ROLLINS LEAVE DEMOCRATS LITTLE PROOF IN SUIT ON NEW JERSEY VOTE BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EXTENSIVE TESTIMONY AND PUBLIC STATEMENTS BY REPUBLICAN CONSULTANT EDWARD ROLLINS APPEAR TO HAVE LEFT DEMOCRATS WITH LITTLE HARD EVIDENCE TO SUBSTANTIATE REPORTS THAT MONEY WAS USED TO SUPPRESS THE BLACK VOTE IN NEW JERSEY'S GUBERNATORIAL ELECTION STILL MR ROLLINS'S STATEMENTS CONTAIN AT LEAST A FEW REFERENCES TO STRATEGIES TO INFLUENCE BLACK MINISTERS THAT DEMOCRATIC ATTORNEYS AND POSSIBLY FEDERAL INVESTIGATORS AS WELL CAN PURSUE FURTHER THIS WEEK MORE SWORN STATEMENTS FROM REPUBLICANS ASSOCIATED WITH THE WHITMAN CAMPAIGN ARE SCHEDULED TO BE TAKEN IN THE NEXT FEW DAYS IN A FULL DAY OF TESTIMONY FRIDAY AND IN AN ARTICLE PUBLISHED YESTERDAY MR ROLLINS HAS FLATLY AND REPEATEDLY DENIED HIS INITIAL CLAIMS THAT THE CAMPAIGN OF NEW JERSEY GOVELECT CHRISTINE TODD WHITMAN USED MONEY TO DISCOURAGE BLACK VOTERS AND DEMOCRATIC WORKERS FROM TURNING OUT ON ELECTION DAY UNDER COURTORDERED QUESTIONING BY DEMOCRATIC ATTORNEYS IN NEW JERSEY MR ROLLINS CLAIMED THAT HIS INITIAL STORY WAS A FABRICATION CONCOCTED TO ADVANCE HIS CAUSE IN A GAME OF PSYCHOLOGICAL WARFARE WITH DEMOCRATIC POLITICAL CONSULTANT JAMES CARVILLE I WAS TRYING TO MAKE HIS LIFE MISERABLE FOR A FEW WEEKS MR ROLLINS SAID ACCORDING TO A 294PAGE TRANSCRIPT OF HIS QUESTIONING RELEASED BY THE DEMOCRATIC ATTORNEYS UNFORTUNATELY MY LIFE WILL BE MISERABLE FOR A LOT LONGER THAN HIS SIMILARLY IN AN ARTICLE PUBLISHED IN YESTERDAY'S WASHINGTON POST MR ROLLINS SAID HIS ASSERTIONS THAT MONEY WAS USED TO SUPPRESS THE BLACK VOTE WERE SIMPLY FALSE HE ADDED I SPUN MYSELF OUT OF CONTROL RATHER THAN BEING CONTENT WITH MERELY DESCRIBING THE TRUE NATURE OF THE TACTICS WE USED TO WIN I ADLIBBED I MADE UP STORIES ABOUT THINGS THAT DID NOT OCCUR MR ROLLINS OPENED THE CONTROVERSY OVER MRS WHITMAN'S NARROW NOV 2 DEFEAT OF DEMOCRATIC GOV JIM FLORIO BY TELLING REPORTERS THAT THE CAMPAIGN HAD DONATED MONEY TO BLACK MINISTERS' FAVORITE CHARITIES IN RETURN FOR PLEDGES BY THE MINISTERS NOT TO URGE THEIR CONGREGATIONS TO VOTE FOR THE DEMOCRATIC CANDIDATE MR ROLLINS ALSO ASSERTED THAT SOCALLED WALKINGAROUND MONEY WAS USED TO PERSUADE DEMOCATIC ELECTIONDAY WORKERS TO STAY AT HOME WALKINGAROUND MONEY IS A TERM FOR LEGALLY PERMISSIBLE FUNDS PARTIES USE FOR EFFORTS TO GET VOTERS TO THE POLLS AS PART OF A CIVIL SUIT PURSUED BY DEMOCRATS IN NEW JERSEY MR ROLLINS WAS COMPELLED TO ANSWER THE QUESTIONS OF DEMOCRATIC ATTORNEYS INVESTIGATING HIS INITIAL ASSERTIONS THE REPUBLICAN CONSULTANT WHO HAD BEEN WIDELY CREDITED FOR ENGINEERING MRS WHITMAN'S SUPRISING VICTORY ALSO HAS TESTIFIED BEFORE A FEDERAL GRAND JURY INVESTIGATING HIS ASSERTIONS ONE KEY PORTION OF MR ROLLINS'S TESTIMONY TO THE DEMOCRATIC ATTORNEYS CONFIRMS THAT THERE WAS AT LEAST SOME INTEREST INSIDE THE WHITMAN CAMPAIGN IN USING PROMISES OF FINANCIAL HELP TO PERSUADE BLACK MINISTERS TO WARD OFF PRESSURES FROM THE FLORIO CAMPAIGN HE SAID THAT IN ONE CONVERSATION A CAMPAIGN VOLUNTEER NAMED LANNA HOOKS WHO HELPED ORGANIZE OVERTURES TO NEW JERSEY'S BLACK COMMUNITY COMPLAINED THAT THE FLORIO CAMP WAS PUTTING TERRIBLE TERRIBLE PRESSURE ON BLACK MINISTERS BY THREATENING TO CUT OFF STATE FUNDING FOR DAYCARE CENTERS AND DRUG PROGRAMS UNLESS THE MINISTERS SUPPORTED THE DEMOCATIC INCUMBENT I SAID LANNA GO BACK TO THESE PEOPLE AND CONTINUE THE DIALOGUE AND TELL THEM AS FAR AS WE'RE CONCERNED WE WANT TO HELP THEM' MR ROLLINS SAID HE RESPONDED WHATEVER THEIR FAVORITE CHARITY MAY BE THERE ARE OTHER WAYS OF HELPING THEM BESIDES STATE FUNDING THAT FLORIO HAS OR WHAT HAVE YOU BUT I DIDN'T AUTHORIZE HER TO GO COMMIT RESOURCES AND SHE AS AN ATTORNEY WOULDN'T ASK FOR THAT MS HOOKS COULDN'T BE REACHED AND A SPOKESMAN FOR THE WHITMAN TRANSITION TEAM DECLINED TO COMMENT MR ROLLINS ALSO FLATLY DENIED WIDELY CIRCULATING STORIES THAT HE REPEATED HIS ASSERTIONS OF A BLACK VOTERSUPPRESSION CAMPAIGN AT A WASHINGTONAREA DINNER PARTY AND IN ANOTHER PRIVATE CONVERSATION THE ROLLINS'S STATEMENTS DO APPEAR TO HAVE AT LEAST CLEARED UP CONFUSION ABOUT THE QUANTITIES OF MONEY IN DISPUTE HIS INITIAL ACCOUNT APPEARED TO ASSERT THAT THE WHITMAN CAMPAIGN SPENT 500000 ON WALKINGAROUND MONEY MR ROLLINS SAID THAT WAS AN INCORRECT IMPRESSION AND THAT 500000 WAS THE TOTAL REPUBLICAN PARTY BUDGET FOR A VARIETY OF GETOUTTHEVOTE EFFORTS HE SAID HE INITIALLY THOUGHT THAT PERHAPS 100000 TO 150000 WAS BUDGETED FOR ELECTION DAY WALKINGAROUND MONEY AND THAT IN REALITY ONLY ABOUT 70000 WAS SPENT BUT ONLY FOR LEGITIMATE VOTERENCOURAGEMENT EFFORTS 9311220149 931122 GREAT AMERICAN SETS ACQUISITION CINCINNATI GREAT AMERICAN TELEVISION & RADIO CO SAID IT SIGNED A LETTER OF INTENT TO BUY KRXQFM FROM FULLERJEFFREY BROADCASTING COS FOR 16 MILLION THE SALE REQUIRES A DEFINITIVE AGREEMENT BETWEEN THE PARTIES AND APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION GREAT AMERICAN TELEVISION IS A UNIT OF GREAT AMERICAN COMMUNICATIONS CORP GREAT AMERICAN TELEVISION SAID IT EXPECTS SHORTLY TO BEGIN OPERATING KRXQFM LOCATED NEAR SACRAMENTO CALIF UNDER AN INTERIM LOCAL MARKETING ARRANGEMENT WITH FULLERJEFFREY 9311220148 931122 UNIVAX BIOLOGICS SELLS STOCK ROCKVILLE MD UNIVAX BIOLOGICS INC SAID IT RAISED ABOUT 11 MILLION THROUGH A PRIVATE SALE OF ITS STOCK TO INSTITUTIONAL INVESTORS THE BIOTECHNOLOGY STARTUP COMPANY WHICH IS WORKING TO DEVELOP VACCINES AND POLYCLONAL ANTIBODY PRODUCTS SAID IT SOLD 13 MILLION SHARES AT 825 EACH UNIVAX WENT PUBLIC IN FEBRUARY 1992 RAISING ABOUT 48 MILLION 9311220147 931122 METROCALL NETWORK ACTIVATED ALEXANDRIA VA METROCALL INC SAID ITS NATIONWIDE WIRELESS NETWORK TODAY WILL BE FULLY ACTIVATED IN THE TOP 100 US MARKETS THE COMPANY SAID ITS SATELLITEBASED NETWORK IS FULLY EQUIPPED FOR WIRELESS COMMUNICATIONS TO PAGERS DATA TERMINALS PERSONAL COMPUTERS AND PERSONAL DIGITAL ASSISTANTS THE COMPANY SAID MONTHLY SERVICE ON ITS NETWORK IS NOW AVAILABLE AT A RATE OF 2495 METROCALL SAID IT ALSO COMPLETED AN 85 MILLION CREDIT FACILITY/AGREEMENT WITH A CONSORTIUM OF BANKS LED BY FIRST NATIONAL BANK OF CHICAGO 9311220146 931122 UNION TEXAS TO REDEEM STOCK HOUSTON UNION TEXAS PETROLEUM HOLDINGS INC SAID ITS BOARD OF DIRECTORS AUTHORIZED REDEMPTION OF 75 MILLION OF PREFERRED AUCTIONRATE STOCK ISSUED BY ITS SUBSIDIARY UNION TEXAS PETROLEUM FIRST FINANCIAL CORP THE ENERGY COMPANY SAID SERIES A STOCK WILL BE REDEEMED DEC 15 AND SERIES B STOCK WILL BE REDEEMED DEC 22 9311220145 931122 COLUMBIA GAS SYSTEM REVAMP WILMINGTON DEL A FEDERAL BANKRUPTCY JUDGE EXTENDED COLUMBIA GAS SYSTEM INC'S EXCLUSIVE PERIOD TO FILE A PLAN FOR REORGANIZATION UNTIL DEC 29 THE PREVIOUS EXCLUSIVITY PERIOD HAD BEEN SET TO EXPIRE NOV 22 THE COURT SAID IT WOULD HEAR THE COMPANY'S MOTION FOR AN EXTENSION OF THE EXCLUSIVITY PERIOD TO MARCH 22 1994 ON DEC 29 9311220144 931122 CONTINENTAL BANK IS SEEKING TO CHANGE TO STATE REGULATOR NOW FEDERALLY CHARTERED BANK CITES COST SAVINGS IN MOVE RESERVES TO BE AFFECTED TOO BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL CONTINENTAL BANK CORP WANTS TO SAVE A COUPLE OF MILLION DOLLARS AND MAYBE SOME GRIEF BY CHANGING BANK REGULATORS THE CHICAGO BANKING COMPANY FILED WITH STATE REGULATORS FRIDAY TO BECOME A STATECHARTERED BANK REGULATED BY THE FEDERAL RESERVE RATHER THAN BY ITS CURRENT FEDERAL REGULATOR THE OFFICE OF THE COMPTROLLER OF THE CURRENCY CURRENTLY THE FED REGULATES STATECHARTERED BANKS OF WHICH THERE ARE ABOUT 1000 AND THE OCC REGULATES THE APPROXIMATELY 3600 FEDERALLY CHARTERED BANKS CONTINENTAL WITH 218 BILLION IN ASSETS BELIEVES IT CAN SAVE 1 MILLION TO 2 MILLION ANNUALLY IN EXAMINATION FEES THE MOVE MAY ALSO REFLECT THE BANK'S RECENT CLASHES WITH THE COMPTROLLER OVER RESERVE LEVELS CHANGING REGULATORS WHILE UNUSUAL IS NOT UNPRECEDENTED IN THE BANKING INDUSTRY WHICH IS GOVERNED BY A VARIETY OF GOVERNMENT AGENCIES INCLUDING THE FED THE COMPTROLLER THE FEDERAL DEPOSIT INSURANCE CORP AND STATE REGULATORS BECAUSE SOME BANKS ARE BOTH FEDERALLY AND STATECHARTERED THEY CAN EVEN BE SUBJECT TO MORE THAN ONE REGULATOR IN MOST CASES A BANK CAN ESSENTIALLY CHOOSE ITS PRIMARY REGULATOR JUST BY ADJUSTING ITS CHARTER THE DECISION ON WHAT KIND OF CHARTER A BANK WANTS IS PURELY A BUSINESS DECISION AND BANKS ARE FREE TO CHOOSE WHICHEVER REGULATOR THEY THINK WILL GIVE THEM THE BEST DEAL FOR WHATEVER REASONS SAID EUGENE LUDWIG COMPTROLLER OF THE CURRENCY BUT FROM A PUBLIC POLICY STANDPOINT WE'VE GOT TO ASK WHETHER THIS IS A GOOD THING WHILE EFFORTS TO STREAMLINE AND CONSOLIDATE BANKING REGULATION HAVE BEEN DEBATED IN CONGRESS IN RECENT YEARS LEGISLATION HAS YET TO BE ENACTED MOREOVER CONTINENTAL ISN'T THE ONLY BANK SEEKING A CHANGE MARINE MIDLAND A UNIT OF HONGKONG & SHANGHAI BANKING CORP RECENTLY FILED AN APPLICATION TO BECOME STATECHARTERED AND SEVERAL OTHER NORTHEAST BANKS ARE CONSIDERING A SIMILAR MOVE I THINK WE'LL SEE MORE OF IT ONE REGULATOR SAID WHILE CHANGING REGULATORS DOESN'T REALLY AFFECT HOW A BANK IS REGULATED BANKS LATELY HAVE BEEN LEANING TOWARD THE FED BECAUSE IT IS VIEWED AS A MORE CONSISTENT REGULATOR SAY BANKING EXPERTS THE COMPTROLLER ON THE OTHER HAND TENDS TO SWING FROM BEING RELATIVELY LAX TO VERY STRINGENT EXPERTS SAY CITICORP FOR INSTANCE HAS HAD BETTER RELATIONS WITH THE FED WHICH REGULATES THE BANK'S HOLDING COMPANY RATHER THAN ITS PRIMARY REGULATOR THE COMPTROLLER COSTSAVINGS IS AN ISSUE BUT MANY BANKS FEEL THE FED IS MORE EVENHANDED SAID GILBERT SCHWARTZ A BANKINGINDUSTRY ATTORNEY AT SKADDEN ARPS SLATE MEAGHER & FLOM MAYBE THEY SMILE MORE FREQUENTLY WHEN THEY STICK THE KNIFE IN IN CONTINENTAL'S CASE A SPOKESMAN SAID THAT IT WAS PURELY A COSTSAVING MOVE SINCE THE FED ALREADY REGULATES THE HOLDING COMPANY AS A MEMBER OF THE FEDERAL RESERVE SYSTEM HE WOULD NOT DISCLOSE THE AMOUNT SAYING ONLY WE WANT TO STREAMLINE THE PROCESS AND SAVE SOME MONEY STILL CONTINENTAL AND THE COMPTROLLER RECENTLY HAVE CLASHED OVER HOW MUCH THE BANK SHOULD SET ASIDE IN RESERVES FOR TROUBLED LOANS PEOPLE CLOSE TO THE BANK SAY AT A TIME WHEN MANY BANKS HAVE BEEN ABLE TO REDUCE RESERVES CONTINENTAL'S PROVISIONS FOR LOAN LOSSES ROSE IN THE FOURTH QUARTER OF 1992 AS WELL AS THE FIRST AND THIRD QUARTERS OF 1993 THE MAIN REASON IS ITS EXPOSURE TO THE STILLDEPRESSED CALIFORNIA REAL ESTATE MARKET IN ADDITION CONTINENTAL WAS MIFFED THAT THE COMPTROLLER TURNED DOWN THE BANK'S ATTEMPT TO SET UP A TRIPLEA RATED SUBSIDIARY TO ENGAGE IN DERIVATIVES ACTIVITIES THESE PEOPLE SAY A BANK SPOKESMAN HOWEVER SAID THAT INCIDENT WASN'T A FACTOR IN THE BANK'S APPLICATION IF CONTINENTAL'S MOVE IS APPROVED BY THE FED THE CHANGE WOULD TAKE EFFECT IN A FEW MONTHS 9311220143 931122 CANADA'S TRADE SURPLUS WIDENS OTTAWA CANADA'S TRADE SURPLUS WIDENED TO 105 BILLION CANADIAN DOLLARS US794 MILLION IN SEPTEMBER MAINLY AS A RESULT OF INCREASED EXPORTS TO THE US STATISTICS CANADA A GOVERNMENT AGENCY SAID THE TRADE SURPLUS IN AUGUST TOTALED C722 MILLION THE US TOOK 811 OF CANADA EXPORTS IN SEPTEMBER AND SUPPLIED 739 OF CANADA'S IMPORTS CANADA'S EXPORTS TO THE US ROSE 41 IN SEPTEMBER FROM AUGUST WHILE ITS IMPORTS FROM THE US ROSE 18 9311220142 931122 KODAK UNIT NEGOTIATING SALE NEW YORK STERLING WINTHROP INC A SUBSIDIARY OF EASTMAN KODAK CO CONFIRMED IT IS NEGOTIATING WITH BURROUGHS WELLCOME CO A UNIT OF WELLCOME PLC FOR THE SALE OF CERTAIN TECHNOLOGY AND RELATED ASSETS OF A SMALL UNIT WITHIN STERLING WINTHROP'S RESEARCH DIVISION THE COMPANY A PRODUCER AND MARKETER OF PHARMACEUTICALS AND CONSUMER HEALTH PRODUCTS SAID THE ASSETS UNDER NEGOTIATION ARE NO LONGER COMPLEMENTARY WITH ITS CORE RESEARCH FOCUS 9311220141 931122 INTERNATIONAL BASF PLANS MORE JOB CUTS LUDWIGSHAFEN GERMANY THE BASF AG CHEMICALS GROUP SAID IT WILL CUT A FURTHER 4000 JOBS OR 34 OF THE 118500 TOTAL EMPLOYEES IN 1994 DUE TO THE CONTINUING DIFFICULT ECONOMIC SITUATION CUTS WILL BE DEEPEST AT THE PARENT COMPANY WITH 2300 JOBS OR 47 OF THE CURRENT 48900 POSITIONS SLATED FOR ELIMINATION THE COMPANY SAID THE BASF GROUP WILL HAVE SHED ABOUT 4700 JOBS OR 38 BY THE END OF THIS YEAR 9311220140 931122 CANADIAN STEEL OUTPUT SLIPS OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 279253 METRIC TONS IN THE WEEK ENDED NOV 13 DOWN 17 FROM 284217 TONS THE PREVIOUS WEEK AND A DOWN 17 FROM 284208 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 220462 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 12402699 TONS A 4 INCREASE FROM 11930878 TONS A YEAR EARLIER 9311220139 931122 BROKEN HILL OCTOBER SALES MELBOURNE AUSTRALIA DOMESTIC STEEL SALES BY BROKEN HILL PROPRIETARY CO AUSTRALIA'S BIGGEST STEEL PRODUCER FELL 14 TO 311000 METRIC TONS IN OCTOBER FROM 360000 TONS IN SEPTEMBER BUT ROSE 11 FROM 280000 TONS IN OCTOBER 1992 THE 11 GAIN FOR OCTOBER COMPARES WITH A 21 RISE IN THE 12 MONTHS TO SEPTEMBER AND A 28 RISE IN THE 12 MONTHS TO AUGUST STEEL EXPORTS ROSE 25 TO 220000 TONS IN OCTOBER FROM 176000 TONS IN SEPTEMBER AND ROSE 57 FROM A YEAR EARLIER 9311220138 931122 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ELETSON HOLDINGS INC 140 MILLION OF FIRST PREFERRED SHIP MORTGAGE NOTES DUE NOV 15 2003 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC MORGAN STANLEY FINANCE PLC 11875 MILLION OF CONVERTIBLE DEBENTURES PRICED AT PAR TO YIELD 782 THE DEBENTURES MANDITORILY CONVERT ON NOV 30 2013 INTO THE PERPETUAL PREFERRED STOCK OF MORGAN STANLEY GROUP INC AFTER ONE YEAR THE DEBENTURES ARE EXCHANGEABLE INTO PREFERRED AT THE OPTION OF THE GROUP THE DEBENTURES ARE CALLABLE AFTER FIVE YEARS AND SOLD FOR 25 EACH RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE SECURITIES WILL BE RATED SINGLEA1 BY MOODY'S AND SINGLEAMINUS BY S&P WHEN THEY CONVERT INTO PREFERRED THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ARRIS PHARMACEUTICAL CORP INITIAL PUBLIC OFFERING OF 25 MILLION SHARES PRICED AT 7 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES AND PAINEWEBBER INC ACCORDING TO THE COMPANY ATLANTIC BEVERAGE CO INITIAL OFFERING OF 11 MILLION COMMON SHARES PRICED AT 650 EACH THROUGH UNDERWRITERS LED BY HAMILTON INVESTMENTS INC CCB FINANCIAL CORP 550000 COMMON SHARES PRICED AT 3250 EACH THROUGH UNDERWRITERS LED BY WHEAT FRIST BUTCHER & SINGER CAPITAL MARKETS ICO INC 12 MILLION DEPOSITARY SHARES PRICED AT 25 A SHARE THROUGH UNDERWRITER JEFFERIES & CO ACCORDING TO THE COMPANY EACH DEPOSITARY SHARE REPRESENTS ONEQUARTER OF A SHARE OF 675 CONVERTIBLE EXCHANGEABLE PREFERRED STOCK EACH PREFERRED SHARE IS CONVERTIBLE INTO 1096 COMMON SHARES SUBJECT TO ADJUSTMENTS SCHULER HOMES INC 27 MILLION COMMON SHARES PRICED AT 2425 A SHARE THROUGH MONTGOMERY SECURITIES ACCORDING TO THE COMPANY FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993244 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPPED MORTGAGEBACKED SECURITIES TRUST 237 AND STRIPPED MORTGAGEBACKED SECURITIES TRUST 251 WHICH ARE BACKED BY 30YEAR 8 MORTGAGEBACKED SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 AND WEIGHTED AVERAGE MATURITY OF 345 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993248 IS BACKED BY 200 MILLION OF PRINCIPLEONLY STRIPS AND 1286 MILLION OF INTERESTONLY STRIPS FROM STRIPPED MORTGAGEBACKED SECURITIES TRUST 250 THAT TRUST IS BACKED BY FANNIE MAE 7 30YEAR MORTGAGEBACKED SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7488 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY UBS SECURITIES INC THE OFFERING SERIES 1993249 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPS TRUST 252 WHICH IS BACKED BY 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 798 AND WEIGHTED AVERAGE MATURITY OF 349 MONTHS BANCO ROBERTS SA ARGENTINA 50 MILLION OF 8375 EUROBONDS DUE DEC 9 1998 AT ISSUE AND REOFFER PRICE 99719 VIA SAMUEL MONTAGU & CO BONDS YIELD 8445 A MARGIN OF 330 BASIS POINTS OVER WHENISSUED US TREASURY OF NOVEMBER 1998 FEES 1125 PAYABLE SEMIANNUALLY EUROFIMA SUPRANATIONAL 190 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE NOV 12 2003 AT ISSUE PRICE 10108 VIA IBJ INTERNATIONAL LTD BONDS WILL TRADE INTERCHANGEABLY WITH C110 MILLION OF IDENTICAL BONDS OUTSTANDING TOTAL ISSUE C300 MILLION REOFFERED AT 9953 TO YIELD 7065 A SPREAD OF 10 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE OTHER TERMS UNCHANGED FEES 1875 KANSALLIS OSAKE PANKKI FINLAND 100 MILLION OF PERPETUAL FLOATINGRATE EURONOTES AT ISSUE AND REOFFER PRICE 989 VIA SALOMON BROTHERS INTERNATIONAL LTD BONDS WILL TRADE INTERCHANGEABLY WITH 150 MILLION OF IDENTICAL BONDS OUTSTANDING TOTAL ISSUE 250 MILLION FEES 075 ALL OTHER TERMS UNCHANGED PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 200 BASIS POINTS FOR FIRST FIVE YEARS THEREAFTER INTEREST AT SIXMONTH LIBOR PLUS 350 BASIS POINTS BONDS CALLABLE ON ANY INTEREST PAYMENT DATE AT AFTER OR FIVE YEARS MECKLENBURGVORPOMMERN GERMAN STATE 500 MILLION MARKS OF 615 BONDS DUE JUNE 16 2023 AT ISSUE PRICE 1021 VIA TRINKAUS & BURKHARDT KGAA REOFFERED AT 99975 TO YIELD TO 2008 CALL DATE A MARGIN OF 34 BASIS POINTS ABOVE 6 GERMAN BUND OF 2003 BONDS CALLABLE ANNUALLY FROM 2008 PAYMENT DATE AT PAR RISING TO 11751 AT FINAL REDEMPTION DATE FEES 25 SKANDINAVISKA ENSKILDA BANKEN SWEDEN 250 MILLION OF FLOATINGRATE EURONOTES DUE DEC 15 1998 AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY INTERNATIONAL LTD PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 00625 BONDS CALLABLE SEMIANNUALLY FROM DECEMBER 1996 INTEREST PAYMENT DATE AT PAR PUT OPTION EXERCISABLE SEMIANNUALLY FROM DECEMBER 1994 INTEREST PAYMENT DATE AT 99965 LAUNCHED OFF BORROWER'S MEDIUMTERM EURONOTE PROGRAM FEES UNDISCLOSED WATTACHAK PUBLIC CO THAILAND 70 MILLION OF 35 CONVERTIBLE 10YEAR EUROBONDS AT ISSUE PRICE PAR VIA JARDINE FLEMING BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT PREMIUM 15 OVER AVERAGE CLOSING PRICE OVER FIVE DAYS FROM NOV 15 TO NOV 19 FOREIGNEXCHANGE RATE 2533 THAI BAHT PER US DOLLAR PUT OPTION AT END OF YEAR FIVE AT PRICE TO YIELD 665 BONDS CALLABLE BETWEEN YEARS THREE AND FIVE AT PRICE TO YIELD 665 AT YEAR FIVE AFTER YEAR FIVE BONDS CALLABLE AT PAR BONDS CALLABLE SUBJECT TO SHARE PRICE BEING 140 OF CONVERSION PRICE FEES 25 9311220137 931122 ACMECLEVELAND UNIT'S VENTURE CLEVELAND ACMECLEVELAND CORP SAID ITS WHOLLY OWNED SUBSIDIARY COMMUNICATIONS TECHNOLOGY CORP FORMED A TELECOMMUNICATIONS JOINT VENTURE WITH CIMA SISTEMAS SA DE CV OF MEXICO CITY COMMUNICATIONS TECHNOLOGY HAS CONTROLLING INTEREST IN THE NEW OPERATION WHICH WILL BE BASED IN MEXICO CITY AND ORIENTED TOWARD SERVING THE MEXICAN AND CENTRAL AMERICAN TELECOMMUNICATIONS MARKETS TERMS WEREN'T DISCLOSED ACMECLEVELAND MAKES TELECOMMUNICATIONS PRODUCTS SENSOR DEVICES AND CONTROLS QUALITYASSURANCE PRODUCTS CUTTING TOOLS AND MULTIPLESPINDLE MACHINE TOOLS 9311220136 931122 SUMITOMO UNIT FINED IN CANADA FOR RIGGING MARKET IN INSECTICIDES OTTAWA THE CANADIAN FEDERAL COURT FINED SUMITOMO CANADA LTD 125 MILLION CANADIAN DOLLARS US942000 FOR PARTICIPATING IN A FOREIGNDIRECTED CONSPIRACY TO RIG THE CANADIAN INSECTICIDE MARKET SUMITOMO CANADA A SUBSIDIARY OF SUMITOMO CORP OF JAPAN PLEADED GUILTY TO THE CHARGE THE CONSPIRACY INVOLVED TWO MAJOR CHEMICAL COMPANIES BAYER AG OF GERMANY AND SUMITOMO CHEMICAL CO OF JAPAN ITS AIM WAS TO REDUCE COMPETITION IN THE SALE OF CHEMICAL INSECTICIDES IN CANADA IN THE 1980S SUMITOMO CHEMICAL IS AN INDEPENDENT COMPANY THAT WORKS CLOSELY WITH THE CANADIAN UNIT OF SUMITOMO CORP CHEMAGRO LTD A SUBSIDIARY OF BAYER PLEADED GUILTY TO THE SAME OFFENSE IN JUNE AND WAS ALSO FINED C125 MILLION THE CONSPIRACY WAS DETECTED AS A RESULT OF INFORMATION VOLUNTARILY DISCLOSED BY ABBOTT LABORATORIES LTD A MONTREALBASED SUBSIDIARY OF ABBOTT LABORATORIES A PHARMACEUTICAL AND CHEMICAL PRODUCER BASED IN ABBOTT PARK ILL 9311220135 931122 TECHNOLOGY & HEALTH WHITE HOUSE TO PROFFER ERGONOMIC RULE FOR WORKPLACES EMPLOYERS' LIABILITIES BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PLANS TO PROPOSE A WORKPLACE ERGONOMIC STANDARD WITHIN 10 MONTHS THE NEW HEAD OF THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION SAID THE PRECIPITOUS GROWTH OF SUCH REPETITIVE STRESS INJURIES AS CARPAL TUNNEL SYNDROME IN JOBS RANGING FROM COMPUTER OPERATORS TO MEAT PACKERS IS PROMPTING THE AGENCY TO PUSH FORWARD ON SUCH A RULE JOSEPH DEAR ASSISTANT SECRETARY SAID IN AN INTERVIEW WE'VE SEEN AN EXPLOSION OF COSTS FOR WORKERS COMPENSATION RELATING TO ERGONOMIC PROBLEMS MR DEAR SAID IT'S TIME TO MAKE CLEAR WHAT THE EXPECTATIONS ARE FOR EMPLOYERS BECAUSE OF THE VARIETY OF INDUSTRIES AND TYPES OF JOBS AFFECTED AN ERGONOMIC RULE HAS BEEN TRICKY TO PIECE TOGETHER EVEN THOUGH REPETITIVE STRESS INJURIES NOW MAKE UP MORE THAN THREEFIFTHS OF ALL OCCUPATIONAL INJURIES ACCORDING TO THE BUREAU OF LABOR STATISTICS IN OTHER AREAS MR DEAR SAYS HE WANTS TO CREATE CONSTRUCTIONINDUSTRY SAFETY RULES TO PROTECT WORKERS AGAINST FALLS TWO TARGETED AREAS ARE ERECTING STEEL AND SCAFFOLDS PUT IN PLACE A STANDARD FOR PROTECTING WORKERS AGAINST TUBERCULOSIS IN THE WORKPLACE MR DEAR SAID THAT 10 WORKERS IN THE PAST TWO YEARS HAVE CONTRACTED THE DISEASE ON THE JOB HE WANTS TO USE A FASTTRACK PROCEDURE HE HOPES THE AGENCY CAN DEVELOP THAT WILL BECOME A MODEL FOR CUTTING THE TYPICAL 38TO46 MONTHS IT NOW TAKES TO PUT AN OSHA STANDARD IN PLACE INCREASE INSPECTIONS AT WORKPLACES BY TAKING SUPERVISORS OUT OF OFFICES AND USING THEM TO BEEF UP THE CURRENT 890PERSON INSPECTION TEAM THAT COULD INCREASE THE NUMBER OF INSPECTORS BY 15 TO 20 STEP UP THE USE OF THE SOCALLED EGREGIOUSVIOLATION RULE FOR REPEAT OFFENDERS UNDER THAT STANDARD COMPANIES CAN BE FINED SEPARATELY FOR EACH OFFENSE RATHER THAN CUMULATIVELY FOR EXAMPLE A COMPANY THAT FAILS TO KEEP RECORDS CAN BE CITED FOR ALL OF ITS EMPLOYEES INDIVIDUALLY RATHER THAN AS A GROUP GREATLY INCREASING THE POTENTIAL PENALTY EGREGIOUS PENALTIES ARE COMING BACK MR DEAR WARNED WE WANT TO ENCOURAGE EMPLOYERS TO TAKE THE HIGH ROAD IN SAFETY AND HEALTH AND WE WANT TO USE ENFORCEMENT TO PRECLUDE THEM FROM TAKING THE LOW ROAD CONTINUE TO STUDY WITH NO NEARTERM TIMETABLE THE ISSUE OF TOBACCO SMOKE IN THE WORKPLACE WE'RE LOOKING AT HOW TO APPROACH THE MATTER OF INDOOR AIR QUALITY INCLUDING PASSIVE TOBACCO SMOKE MR DEAR SAID BUT NO CONCLUSIONS ARE AT HAND OSHA MONITORS ABOUT SIX MILLION WORKPLACES WITH ABOUT 93 MILLION WORKERS THE AGENCY WHOSE BUDGET TOTALS 270 MILLION HAS LONG BEEN ACCUSED OF BEING WOEFULLY UNDERSTAFFED MR DEAR SAID HE HOPES COMPANIES WILL INCREASE SELFINSPECTION AS A SUPPLEMENT TO WHAT ALREADY IS BEING DONE BUT MR DEAR STOPPED SHORT OF ENDORSING THE IDEA DISCUSSED IN VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT REPORT OF REDUCING OSHA SCRUTINY FOR COMPANIES IF THEY HAVE WORKER TEAMS OR IF OUTSIDE SAFETY AUDITORS PROVIDE INSPECTIONS 9311220134 931122 CONSUMERS GAS STAKE TO BE SOLD BY BRITISH GAS BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO BRITISH GAS PLC SAID IT AGREED TO SELL ITS 85 STAKE IN CONSUMERS GAS CO OF TORONTO FOR 115 BILLION CANADIAN DOLLARS US869 MILLION IN ORDER TO SEEK HIGHER RETURNS FROM NATURALGAS INVESTMENTS IN EMERGING MARKETS THE CONSUMERS GAS STAKE WILL BE SOLD TO OILPIPELINE OPERATOR INTERPROVINCIAL PIPE LINE SYSTEM INC OF EDMONTON ALBERTA WHICH SAID IT WILL ALSO PAY BRITISH GAS C45 MILLION US34 MILLION FOR RELATED UTILITY INTERESTS THE SALE REPRESENTS A BIG TURNAROUND IN STRATEGY FOR BRITISH GAS THE LONDON CONCERN BOUGHT CONSUMERS GAS A NATURALGAS DISTRIBUTOR LESS THAN THREE YEARS AGO FROM A COMPANY CONTROLLED BY TORONTO'S REICHMANN FAMILY FOR C114 BILLION BRITISH GAS THEN SOLD 15 OF CONSUMERS IN A PUBLIC SHARE OFFERING IN CANADA A REQUIREMENT OF CANADIAN REGULATORS ALAN MARSHALL AN ANALYST WITH SWISS BANK CORP IN LONDON SAID BRITISH GAS IS PARTING WITH ITS MOST PROFITABLE OVERSEAS GAS UTILITY IN THE YEAR TO SEPT 30 CONSUMERS REPORTED A PROFIT OF C1242 MILLION ON REVENUE OF C662 MILLION BRITISH GAS DOESN'T HAVE AS MUCH FINANCIAL FLEXIBILITY AS IT DID A FEW YEARS AGO AND THE COMPANY FOUND INTERPROVINCIAL'S OFFER TOO GOOD AN OPPORTUNITY TO PASS MR MARSHALL SAID CEDRIC BROWN BRITISH GAS'S CHIEF EXECUTIVE OFFICER SAID MAJOR OPPORTUNITIES ARE NOW OPENING UP WORLDWIDE AS A RESULT OF INCREASING LIBERALIZATION OF ENERGY MARKETS AND GROWTH IN DEMAND FOR GAS A BRITISH GAS OFFICIAL SAID THE COMPANY HADN'T PLANNED TO SELL CONSUMERS BEFORE IT RECEIVED THE INTERPROVINCIAL OFFER MALCOLM WESLEY EXECUTIVE VICE PRESIDENT WITH BRITISH GAS'S CANADIAN SUBSIDIARY SAID BRITISH GAS IS LOOKING IN SOUTH AMERICA AND THE FAR EAST FOR ACQUISITIONS AS A WAY OF COMPENSATING FOR THE MORE MATURE PARTS OF OUR BUSINESS MR WESLEY SAID HE EXPECTS THE COMPANY WILL RECORD A SMALL ACCOUNTING GAIN ON THE SALE OF CONSUMERS BRIAN MACNEILL INTERPROVINCIAL'S PRESIDENT AND CHIEF EXECUTIVE SAID THE COMPANY WANTS TO DIVERSIFY FROM ITS MAIN BUSINESS OF OIL PIPELINES AND IS LOOKING SEVERAL YEARS AHEAD TO WHEN CANADA'S CRUDEOIL RESERVES ARE EXPECTED TO DECLINE LONGER TERM WE SEE MORE GROWTH ON THE NATURALGAS SIDE HE SAID INTERPROVINCIAL SAID IT WILL TAP THE CAPITAL MARKETS TO FINANCE THE TRANSACTION THE COMPANY SAID IT PLANS TO RAISE C500 MILLION FROM AN EQUITY ISSUE AND C500 MILLION FROM A DEBT ISSUE THE BALANCE OF THE C12 BILLION PRICE FOR ALL THE ASSETS BEING PURCHASED FROM BRITISH GAS WILL COME FROM INTERPROVINCIAL'S CASH HOLDINGS IT SAID THE TRANSACTION WHICH IS SUBJECT TO REGULATORY APPROVAL IS EXPECTED TO CLOSE BY NEXT SPRING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY BRITISH GAS SHARES CLOSED AT 48125 DOWN 125 CENTS INTERPROVINCIAL SHARES CLOSED ON THE TORONTO STOCK EXCHANGE AT C30 US2267 DOWN C1 SHARES OF CONSUMERS GAS CLOSED AT C1888 DOWN 125 CANADIAN CENTS BRITISH GAS SAID ITS SALE OF CONSUMERS GAS VALUES THE COMPANY'S SHARES AT C2050 9311220133 931122 TECHNOLOGY & HEALTH APPLE FILES DETAILS OF SEPARATION PACT WITH EXCHAIRMAN FIRM AGREES TO BUY SCULLEY'S 4 MILLION HOUSE LEAR JET ON TOP OF 4 MILLION ACCORD JOHN SCULLEY MAY BE GONE FROM APPLE COMPUTER INC BUT HE IS NOT FORGOTTEN AS A GOINGAWAY GIFT LAST MONTH MR SCULLEY'S FORMER EMPLOYER BESTOWED A SEPARATION AGREEMENT ON ITS FORMER CHAIRMAN VALUED AT A MINIMUM OF 4 MILLION THAT'S BEFORE THE COMPANY BUYS MR SCULLEY'S 4 MILLION HOUSE AND HIS LEAR JET ACCORDING TO PRELIMINARY PROXY INFORMATION FILED BY APPLE WITH THE SECURITIES AND EXCHANGE COMMISSION MR SCULLEY WHO LEFT APPLE LAST MONTH AND SIGNED ON AS CHAIRMAN OF SPECTRUM INFORMATION TECHNOLOGIES INC RECEIVED A YEAR'S SALARY 1 MILLION IN SEVERANCE FROM APPLE HE ALSO GOT A 750000 CONSULTING CONTRACT AND IMMEDIATE VESTING IN UNEARNED STOCK OPTIONS THAT THE COMPANY'S FILING VALUED AT AN ADDITIONAL 24 MILLION IN ADDITION APPLE AGREED TO PAY FAIR MARKET VALUE FOR MR SCULLEY'S HOUSE IN WOODSIDE CALIF THE HOUSE IS ON THE MARKET AT JUST UNDER 4 MILLION AND THE COMPANY SAID IT WOULD BUY THE LEAR JET IT HAD BEEN LEASING FROM MR SCULLEY'S LAS AVIATION INC FOR THE PAST TWO YEARS APPLE PAID LAS 616320 LAST YEAR TO RENT THE PLANE ACCORDING SEPARATE SEC FILINGS FINALLY TO EASE MR SCULLEY'S TRANSITION BACK TO THE EAST COAST APPLE SAID IT WOULD PICK UP MR SCULLEY'S MOVING EXPENSES TO HIS NEW HOME IN GREENWICH CONN SPOKESMEN FOR APPLE AND MR SCULLEY DECLINED TO COMMENT ON THE FILING AS PREVIOUSLY REPORTED SPECTRUM GAVE MR SCULLEY A MILLIONDOLLAR SALARY AND OPTIONS TO BUY 18 MILLION SHARES OVER FIVE YEARS BASED ON SPECTRUM'S CLOSING PRICE EARLIER THIS MONTH WHEN MR SCULLEY'S COMPENSATION PACKAGE WAS FIRST REPORTED THE OPTIONS WOULD GIVE HIM AN INDICATED PROFIT OF 72 MILLION 9311220132 931122 ASTROTECH ACQUIRES RUBBAGLAS PITTSBURGH ASTROTECH INTERNATIONAL CORP SAID IT COMPLETED ACQUISITION OF RUBBAGLAS PETROSEALS LTD A PRIVATELY HELD LONDONBASED COMPANY RUBBAGLAS WAS PURCHASED FOR 225 MILLION IN CASH PLUS A CONTINGENT PAYMENT TO BE BASED ON FUTURE PERFORMANCE A SPOKESMAN SAID THE PAYMENT IS CAPPED AT 850000 13 MILLION OVER FIVE YEARS RUBBAGLAS MAKES EQUIPMENT FOR ABOVEGROUND STORAGE TANKS ASTROTECH SUPPLIES PRODUCTS AND SERVICES FOR THE INSPECTION AND MAINTENANCE OF ABOVEGROUND TANKS 9311220131 931122 HONG KONG ORDERS ARE STEADY HONG KONG THE VOLUME OF ORDERSONHAND FOR THE 200 LARGEST MANUFACTURERS IN HONG KONG DECLINED SLIGHTLY IN SEPTEMBER FROM THE YEAR EARLIER BUT SHOWED VIRTUALLY NO CHANGE FROM THE PREVIOUS MONTH THE GOVERNMENT'S CENSUS AND STATISTICS DEPARTMENT SAID 9311220130 931122 NASD TAKES ACTION AGAINST NINE COMPANIES A NUMBER OF INDIVIDUALS ARE ALSO DISCIPLINED FOR RULES VIOLATIONS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY MEASURES AGAINST NINE FIRMS AND A NUMBER OF INDIVIDUALS FOR VIOLATIONS OF NASD RULES AND SECURITIES LAWS ROGER J LANGE & CO PARIS ILL AND PRINCIPAL ROGER J LANGE BROCTON ILL WERE FINED 250000 JOINTLY AND INDIVIDUALLY EACH RESPONSIBLE FOR THE FULL AMOUNT WHILE THE FIRM WAS EXPELLED AND MR LANGE WAS BARRED IN ADDITION PRINCIPAL JOHN H MATHUES LAKE ZURICH ILL AND BROKER RICHARD F DUELL BUFFALO GROVE ILL WERE EACH FINED 15000 AND SUSPENDED FROM ASSOCIATION WITH ANY MEMBER FIRM FOR 10 CONSECUTIVE BUSINESS DAYS MR DUELL AND MR MATHUES WERE REQUIRED TO PAY 1606001 AND 1053716 RESPECTIVELY IN RESTITUTION TO CUSTOMERS THE NASD SAID THE FIRM AND MR LANGE SOLD UNREGISTERED SECURITIES TO THE PUBLIC AND CHARGED CUSTOMERS UNFAIR PRICES THE NASD ALSO SAID THEY DIDN'T FOLLOW REQUIREMENTS UNDER COLD CALL SALES RULES THE FIRM AND THE INDIVIDUALS DIDN'T ADMIT OR DENY THE CHARGES MR MATHUES NO LONGER ASSOCIATED WITH THE FIRM SAID THE CASE INVOLVED THE HANDLING OF ONE STOCK IN A NEW MARKETPLACE AND THAT THE FIRM MISUNDERSTOOD NASD RULES AC MASINGILL & ASSOCIATES INC KNOXVILLE TENN WAS FINED 30000 AND SUSPENDED FROM NASD MEMBERSHIP FOR SIX MONTHS IN ADDITION PRINCIPAL ARTHUR C MASINGILL AND BROKER JEFFREY R SHARP WERE EACH FINED 7500 AND BROKER GAINES C WALKER WAS FINED 5000 MESSRS MASINGILL SHARP AND WALKER WERE SUSPENDED FOR SIX MONTHS 90 DAYS AND 30 DAYS RESPECTIVELY THE NASD FOUND THAT THEY SOLD IMPROPERLY REGISTERED CERTIFICATES OF DEPOSIT AND FAILED TO KEEP ACCURATE BOOKS AND RECORDS THE FIRM AND INDIVIDUALS CONSENTED TO THE FINDINGS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS THE NASD SAID THE CASE INVOLVED SALE OF A FOREIGN BANK'S CDS WHICH WEREN'T REGISTERED MR MASINGILL SAID HIS FIRM WAS THE VICTIM OF A SCAM BY THE FOREIGN BANK CALLING IT SIMPLY A BAD SITUATION THAT WAS A COMPLETELY INNOCENT THING HE SAID THE FIRM HAS SETTLED WITH CUSTOMERS INVOLVED INVESTMENT PLANNING INC DUBUQUE IOWA WAS FINED 10000 SUSPENDED FOR 10 BUSINESS DAYS AND PROHIBITED FROM ENGAGING IN PRINCIPAL TRANSACTIONS WITH CUSTOMERS FOR 30 DAYS ALSO AN NASD DISTRICT COMMITTEE MUST APPROVE THE FIRM'S BUSINESS PLAN BEFORE IT ENGAGES IN PRINCIPAL TRANSACTIONS WITH CUSTOMERS PRINCIPAL EDWARD J HAFEMAN DUBUQUE WAS FINED 30000 SUSPENDED FOR 90 DAYS AND BARRED FROM MEMBERSHIP IN A PRINCIPAL CAPACITY WHILE BROKERS JOHN L FINN AND JOHN K FINN WERE FINED 10000 EACH AND SUSPENDED FOR 10 DAYS THE SANCTIONS AFFIRMED BY THE SECURITIES AND EXCHANGE COMMISSION INVOLVE FINDINGS THAT THE FIRM AND INDIVIDUALS SOLD CORPORATE AND MUNICIPAL BONDS TO CUSTOMERS AT UNFAIR AND UNREASONABLE PRICES WASATCH STOCK TRADING INC SALT LAKE CITY WAS FINED 20000 AND SUSPENDED FOR 15 DAYS ALSO PRINCIPAL ROGER HILL NESLEN SANDY UTAH AND PRINCIPAL MICHAEL W KLEKAS SALT LAKE CITY WERE EACH FINED 10000 AND SUSPENDED FOR 15 DAYS THE NASD SAID THEY ENGAGED IN PARKING SECURITIES IN CUSTOMER ACCOUNTS TO MAKE IT APPEAR THE FIRM WAS IN COMPLIANCE WITH NET CAPITAL REQUIREMENTS SD COHN & CO NEW YORK AND PRINCIPAL SIDNEY D COHN EAST WILLISTON NY WERE FINED 12500 JOINTLY AND INDIVIDUALLY BASED ON FINDINGS THAT THEY FAILED TO MAINTAIN REQUIRED MINIMUM NET CAPITAL THEY DIDN'T ADMIT OR DENY ALLEGATIONS NIKKO SECURITIES CO INTERNATIONAL INC NEW YORK A UNIT OF NIKKO SECURITIES CO AND FOUR INDIVIDUALS WERE FINED 15000 JOINTLY AND SEVERALLY FOR ACTING AS GENERAL SECURITIES PRINCIPALS WITHOUT BEING PROPERLY REGISTERED INDIVIDUALS DISCIPLINED WERE PRINCIPAL STEPHEN A AXILROD PRINCIPAL MASUMI YAMAGUCHI AND RYOSUKE SUZUKE ALL OF NEW YORK AND TOMINARI MIYUKI TENAFLY NJ THE NASD ALSO SAID THE FIRM FAILED TO COMPLY WITH CERTAIN SUPERVISORY RULES THE ALLEGATIONS WERE NEITHER ADMITTED NOR DENIED TL SMITH SECURITIES INC FORT WORTH TEXAS AND PRINCIPAL THAD LASLEY SMITH WERE FINED 10000 JOINTLY AND INDIVIDUALLY THE NASD SAID THE FIRM ACTING THROUGH MR SMITH PERMITTED SEVEN INDIVIDUALS TO SELL SECURITIES WITHOUT PROPER QUALIFICATIONS OR REGISTRATION KEMPER SECURITIES GROUP INC CHICAGO A UNIT OF KEMPER CORP WAS FINED 10000 FOR FAILING TO ADEQUATELY SUPERVISE A BROKER THE COMPANY DIDN'T ADMIT OR DENY ALLEGATIONS UNLESS OTHERWISE NOTED INDIVIDUALS AND FIRMS COULDN'T BE REACHED OR HAD NO COMMENT IN DISCIPLINARY ACTIONS AGAINST INDIVIDUALS DOUGLAS DRAKE ALCALA SEATTLE FINED 5000 AND SUSPENDED 60 BUSINESS DAYS ELIZABETH BIDWELL MILLER PLACE NY BARRED FINED 50000 AND REQUIRED TO PAY 580772 IN RESTITUTION TO HER MEMBER FIRM CAROLE MULLER BOROWSKI WASHINGTON DC SUSPENDED TWO MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS REGINALD E BROWN MONROEVILLE PA WITHOUT ADMITTING OR DENYING THE ALLEGATIONS FINED 20000 AND BARRED JEANNE M CASEBOLT LA JUNTA COLO FINED 50000 BARRED AND REQUIRED TO PAY 2937 PLUS INTEREST IN RESTITUTION YOSIK CHU TEANECK NJ WITHOUT ADMITTING OR DENYING THE ALLEGATIONS BARRED FINED 29250 AND REQUIRED TO PAY 4500 IN RESTITUTION TO HIS MEMBER FIRM AND ERNEST A CIPRIANI JR ELLSWORTH PA BARRED AND FINED 3000 MR CIPRIANI'S CASE HAS BEEN APPEALED TO THE SEC ALSO JAMIE GAIL CLINGMAN DECATUR TEXAS BARRED FINED 50000 AND REQUIRED TO PAY 44095 IN RESTITUTION RICHARD P DURANT JACKSONVILLE FLA BARRED FINED 120000 AND REQUIRED TO PAY 47000 IN RESTITUTION TO HIS MEMBER FIRM CHARLES N EDMONDS CHICAGO FINED 5500 AND SUSPENDED TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS LARRY ALAN EGGERS GILROY CALIF BARRED FOLLOWING AN APPEAL AND KIRK L FERGUSON CENTERVILLE UTAH FINED 5000 JOINTLY AND SEVERALLY WITH A MEMBER FIRM AND ORDERED TO PROVIDE RESTITUTION OF 56335 HE ALSO WAS FINED AN ADDITIONAL 5000 AND SUSPENDED FOR FIVE BUSINESS DAYS MR FERGUSON'S SANCTIONS HAVE BEEN APPEALED TO THE SEC ALSO PAUL F FOMBY CHICAGO BARRED AND FINED 25000 MICHAEL T FORNAL ALEXANDRIA VA BARRED FINED 120000 AND ORDERED TO PAY RESTITUTION OF 531990 MICHAEL K FULTZ BOULDER COLO BARRED JOHN L GRAVITT DENVER FINED 15000 AND SUSPENDED FOR 30 DAYS STEVEN MICHAEL HARTWELL FORT BRAGG NC FINED 10000 AND SUSPENDED SEVEN BUSINESS DAYS AND NAZMI C HASSANIEH MEMPHIS TENN BARRED IN A CASE THAT HAS BEEN APPEALED TO THE SEC ALSO EDWIN H HAW JR CHICAGO BARRED AND FINED 57500 FOLLOWING AN APPEAL BARBARA ROBINSON HOGANSON AURORA ILL FINED 900 AND SUSPENDED FOR SIX MONTHS DEEMED SERVED MARK A HOLLIS HEADLAND ALA FINED 25000 AND BARRED JEAN J HUNTER CHICAGO FINED 25000 AND BARRED JOHN R JOHNSTON ADA OKLA SUSPENDED THREE MONTHS AND FOR ONE YEAR IN ANY PRINCIPAL CAPACITY WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL JOSEPH KEARNS HOUSTON FINED 20000 AND BARRED MICHAEL J KEEN HACKENSACK NJ FINED 30000 AND BARRED JEFFREY H KRISMAN TULSA OKLA WITHOUT ADMITTING OR DENYING THE ALLEGATIONS BARRED FINED 120000 AND REQUIRED TO PAY 2225544 IN RESTITUTION TO HIS FORMER MEMBER FIRM AND THOMAS EDWARD KROTKOWSKI TACOMA WASH FINED 100000 AND BARRED MR KROTKOWSKI SAID HE IS IN THE PROCESS OF PAYING FULL RESTITUTION TO HIS MEMBER FIRM PRUDENTIAL INSURANCE CO OF AMERICA HE DECLINED FURTHER COMMENT ON THE FINDINGS ALSO JILL KYLE FREMONT CALIF FINED 100000 AND BARRED FOR MISAPPROPRIATING 3536774 FROM HER MEMBER FIRM FOR HER PERSONAL USE BECAUSE I AM NOT REGISTERED WITH NASD MY ATTORNEY ADVISED ME NOT TO RESPOND FOR THEIR REQUESTS FOR INFORMATION MS KYLE SAID SHE SAID SHE CHOSE NOT TO INCUR THE COSTS OF DEFENDING THE CASE AND DECLINED TO ADMIT OR DENY THE ALLEGATIONS SHE SAID A SETTLEMENT HAD BEEN REACHED WITH HER FIRM ALSO DEREK J LEIGH NEW YORK FINED 20000 AND BARRED TIMOTHY P LOONEY SHREVEPORT LA FINED 120000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS AND GARLAND WH MCDONALD MESA ARIZ WITHOUT ADMITTING OR DENYING ALLEGATIONS BARRED FINED 100000 AND REQUIRED TO SHOW PROOF OF RESTITUTION OF 6701045 TO CUSTOMERS PLUS INTEREST ALSO JOSEPH R MULALLY SINKING SPRING PA BARRED AND FINED 25000 ROBERT J NIICHEL LITTLETON COLO BARRED AND FINED 25000 WILLIAM FELBERT NOWLIN III LOS ANGELES BARRED AND FINED 100000 AND JOSEPH H O'BRIEN II NEW YORK FINED 5000 BARRED AND REQUIRED TO PAY 7500 IN RESTITUTION MR O'BRIEN'S CASE HAS BEEN APPEALED TO THE SEC ALSO ROBYN LYNN RUPPERT O'LEARY ST LOUIS MO SUSPENDED TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS LLOYD DWIGHT PANKEY SPOKANE WASH BARRED WITHOUT ADMITTING OR DENYING THE ALLEGATIONS DOUGLAS LEE PARKER IRON RIVER MICH FINED 70000 AND BARRED AND DOUGLAS G POWELL WEST PALM BEACH FLA BARRED FINED 45000 AND REQUIRED TO PAY 4683 IN RESTITUTION TO PUBLIC CUSTOMERS ALSO DOUGLAS J QUICK JR LINDENHURST NY FINED 50000 AND BARRED DOUGLAS B REEVES CHEYENNE WYO BARRED AND FINED 100000 WITHOUT ADMITTING OR DENYING ALLEGATIONS THE FINE WILL BE WAIVED IF 80000 IN RESTITUTION PLUS INTEREST IS PAID WITHIN 180 DAYS ALSO DALE M RUSSELL LAVERNE CALIF FINED 53287 AND SUSPENDED FOR SEVEN DAYS LARRY SAMPLES YPSILANTI MICH FINED 170000 AND BARRED LEANN BOBLETER SARGENT MINNEAPOLIS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS BARRED AND FINED 31250 MICHAEL SCHKLAR CARMEL IND BARRED AND FINED 50000 JEFFREY R SCHULTZ TOLEDO OHIO BARRED FINED 100000 AND REQUIRED TO PAY 15438 IN RESTITUTION TO A PUBLIC CUSTOMER STEPHEN L SHINHAM FREDERICK MD FINED 5000 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS LARRY L SIMMONS OKLAHOMA CITY OKLA SUSPENDED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS KELLY SUZANNE SIMPSON MONTEREY CALIF FINED 5000 AND BARRED ALFRED J SMALL GLEN COVE NY FINED 11000 SUSPENDED FOR 30 DAYS AND REQUIRED TO PAY 5500 IN RESTITUTION AND DAVID RITCHIE SMITH SAUSALITO CALIF FINED 35000 JOINTLY AND SEVERALLY BARRED IN ANY PRINCIPAL OR SUPERVISORY CAPACITY AND SUSPENDED 90 DAYS IN ANY CAPACITY MR SMITH'S CASE HAS BEEN APPEALED TO THE SEC ALSO GLORIA MAE SMITH OCALA FLA FINED 100000 BARRED AND REQUIRED TO PAY 3431847 IN RESTITUTION TO HER MEMBER FIRM JOSEPH HERSCHEL STAFFORD HOUSTON BARRED FINED 25000 AND REQUIRED TO PAY 8000 IN RESTITUTION TO A PUBLIC CUSTOMER AND ALLEN DEWITT SUGGS JR MIDDLEBURG FLA BARRED AND FINED 20000 FOUR TEXAS INDIVIDUALS SETTLED CHARGES SIMILAR TO ONE ANOTHER'S WITHOUT ADMITTING OR DENYING GUILT KELLY SUTTON FLOWER MOUND TEXAS FINED 10000 JOHN Y COLE DALLAS FINED 15000 AND SUSPENDED 10 BUSINESS DAYS ROBERT R ROMERO PFLUGERVILLE TEXAS FINED 15000 AND SUSPENDED FOR 10 BUSINESS DAYS AND ROBYN L REAGAN DALLAS FINED 20000 AND SUSPENDED FOR 20 DAYS THE CHARGES AGAINST EACH INVOLVED EXECUTING UNAUTHORIZED TRANSACTIONS IN PUBLIC CUSTOMER ACCOUNTS PETER THEODORELLIS BROOKLYN NY WITHOUT ADMITTING OR DENYING THE ALLEGATIONS BARRED FINED 55000 AND REQUIRED TO PAY 32233 IN RESTITUTION TO PUBLIC CUSTOMERS JON J VARGO EDISON NJ BARRED FINED 10000 AND REQUIRED TO PAY RESTITUTION OF 2053750 TO PUBLIC CUSTOMERS WITHOUT ADMITTING OR DENYING CHARGES AND JAMES G WAGNER ELKTON MD BARRED AND FINED 35000 WHICH WILL BE REDUCED BY AMOUNTS PAID IN RESTITUTION ALSO WENDELL D BELDEN TULSA OKLA FINED 25000 WITHOUT ADMITTING OR DENYING CHARGES AND ANTHONY J PARISI SCOTTSDALE ARIZ FINED 20000 MR BELDEN SAID HE WAS UNAWARE HE NEEDED WRITTEN APPROVAL FROM KEYSTONE GROUP INC FOR USING INFORMATION FROM THE COMPANY'S SALES LITERATURE AND PROSPECTUS THE NASD SAID A FEDERAL APPEALS COURT DENIED A MOTION TO STAY SANCTIONS AGAINST RB WEBSTER INVESTMENTS INC LAUDERHILL FLA AND ITS PRESIDENT ROBERT BRUCE ORKIN COCONUT CREEK FLA THEY WERE FINED 200000 JOINTLY AND SEVERALLY AND ORDERED TO PAY 53784 IN RESTITUTION THE FIRM WAS EXPELLED AND MR ORKIN BARRED THE NASD SAID THEY SOLD SECURITIES TO THE PUBLIC AT UNFAIR PRICES IN BLIND POOL OFFERINGS 9311220129 931122 TAIWAN'S GNP GROWTH ESTIMATE TAIPEI GROWTH IN TAIWAN'S GROSS NATIONAL PRODUCT IS EXPECTED TO REACH 603 IN 1993 DOWN FROM THE 608 FORECAST IN AUGUST THE DIRECTORATE GENERAL OF BUDGET ACCOUNTING AND STATISTICS SAID THE AGENCY SAID GNP GROWTH FOR THE THIRD QUARTER THIS YEAR STOOD AT 578 DOWN FROM THE PREVIOUS ESTIMATE OF 6 THE AGENCY SAID THE LOWERTHANEXPECTED GNP GROWTH MAINLY RESULTED FROM RECENT CUTS IN INTERNATIONAL INTEREST RATES WHICH WILL GENERATE LESS INTEREST FOR TAIWAN'S OVERSEAS ASSETS 9311220128 931122 INTERNATIONAL WASHINGTON INSIGHT CIA TELLS CLINTON HE COULD FACE A CRISIS IN CUBA IF SERIOUS INSTABILITY' DEVELOPS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CENTRAL INTELLIGENCE AGENCY HAS WARNED PRESIDENT CLINTON THAT HE COULD FACE A MAJOR CRISIS IN CUBA VIRTUALLY AT ANY TIME IN A CLASSIFIED NATIONAL INTELLIGENCE ESTIMATE ISSUED IN AUGUST THE CIA WARNS THAT WITH THE CUBAN ECONOMY IN FREE FALL TENSIONS AND UNCERTAINTIES ARE SO ACUTE THAT SIGNIFICANT MISCALCULATIONS BY CUBAN LEADER FIDEL CASTRO A DETERIORATION OF HIS HEALTH OR PLOTTING IN THE MILITARY COULD PROVOKE REGIMETHREATENING INSTABILITY AT VIRTUALLY ANY TIME THE REPORT GOES ON TO SAY THAT MR CASTRO CAN BE EXPECTED TO USE WHATEVER FORCE NECESSARY TO HOLD ON TO POWER EVEN AT THE RISK OF A BLOOD BATH AND THAT EVEN IF HE IS OVERTHROWN THE NEW ERA WILL BE MARRED BY RETRIBUTORY AND OTHER VIOLENCE SERIOUS INSTABILITY ON THE ISLAND THE REPORT CONCLUDES WOULD HAVE AN IMMEDIATE IMPACT ON THE US CAUSING FROM 20000 TO 80000 OR MORE CUBANS TO FLEE TO THE US AND SPURRING DEMANDS FOR AMERICAN MILITARY INTERVENTION DESPITE THIS GRIM NEWS MR CLINTON LIKE HIS PREDECESSORS SEEMS MORE CONCERNED ABOUT THE ELECTORAL POLITICS OF FLORIDA THAN WITH HEADING OFF A FOREIGNPOLICY CRISIS 90 MILES FARTHER SOUTH AS A CANDIDATE MR CLINTON WON CASH AND KUDOS FROM THE CONSERVATIVE CUBANAMERICAN COMMUNITY WHEN HE PLEDGED TO TIGHTEN THE ECONOMIC EMBARGO ON CUBA HE HAS NO INTENTION OF BREAKING THAT PLEDGE NOW AIDES SAY ESPECIALLY WITH MR CASTRO SO CLEARLY ON THE ROPES AND MR CLINTON'S FOREIGNPOLICY PLATE SO OBVIOUSLY FULL LIFTING THE EMBARGO IS BY NO MEANS THE ONLY POLICY CHOICE AVAILABLE TO THE PRESIDENT BUT HIS POLITICALLY SKITTISH ADVISERS SEEM TO HAVE LITTLE WILL TO TRY ANYTHING ELSE THAT MIGHT LOWER TENSIONS AND HELP PROMOTE A PEACEFUL TRANSITION AT THE COST OF INFURIATING THE POWERFUL CUBA LOBBY THE POLITICAL CLIMATE RIGHT NOW IS DON'T TAKE ANY CHANCES SAYS ONE FRUSTRATED US OFFICIAL THERE ARE PLENTY OF NEW IDEAS PERCOLATING ELSEWHERE INCLUDING INSIDE THE CUBANAMERICAN COMMUNITY A NEW CUBANEXILE ORGANIZATION CALLED CAMBIO CUBANO OR CUBAN CHANGE WHICH IS HEADED BY A FORMER POLITICAL PRISONER WITH IMPECCABLE ANTICASTRO CREDENTIALS HAS CALLED FOR LOOSENING THE EMBARGO IN EXCHANGE FOR ECONOMIC AND POLITICAL REFORMS ANOTHER GROUP THE CUBAN COMMITTEE FOR DEMOCRACY IS OPENING AN OFFICE IN WASHINGTON TO LOBBY FOR AN END TO WHAT THEY CALL THE US POLICY OF ISOLATION AND STRANGULATION IF THERE IS TO BE A PEACEFUL CHANGE IN CUBA THERE MUST BE POLITICAL DIALOGUE BETWEEN MR CASTRO AND HIS OPPONENTS SAYS THE COMMITTEE'S PRESIDENT MARCELINO MIYARES THE US SHOULD USE WHATEVER MEANS IT HAS TO PROMOTE THAT DIALOGUE IN A NEW STUDY FOR THE 20TH CENTURY FUND ANALYST GILLIAN GUNN CALLS FOR THE US TO ENCOURAGE POLITICAL CHANGE ON THE ISLAND BY SOFTENING ITS RHETORIC AND SEEKING CLOSER CONTACTS WITH A NEW GENERATION OF POTENTIALLY REFORMMINDED CUBANS LIFTING THE EMBARGO WOULD COME ONLY IF MR CASTRO MAKES SERIOUS POLITICAL REFORMS EVEN CONSERVATIVE COMMENTATORS WILLIAM RATLIFF OF THE HOOVER INSTITUTION AND FORMER REAGAN AIDE ROGER FONTAINE HAVE CALLED ON THE ADMINISTRATION TO LIFT THE ECONOMIC EMBARGO WHILE REFUSING ANY POLITICAL CONTACT WITH MR CASTRO'S REGIME LIFTING THE EMBARGO WOULD LOWER TENSIONS AND ROB MR CASTRO OF HIS AMERICAN SCAPEGOAT AND BLUNT HIS IMAGE THEY WROTE IN A JUNE OPINION ARTICLE IN THE WASHINGTON POST INSIDE THE INTELLIGENCE COMMUNITY THERE ALSO IS A GROWING VIEW THAT LIFTING THE EMBARGO MIGHT WEAKEN MR CASTRO POLITICALLY WHILE DOING LITTLE TO AMELIORATE CUBA'S DESPERATE ECONOMIC STRAITS US OFFICIALS AND CONSERVATIVE CUBANAMERICANS BELIEVE OTHERWISE AT THE SAME TIME OFFICIALS INSIST THAT THEY AREN'T IN THE WORDS OF ONE COMPLETELY BRAIN DEAD WHEN IT COMES TO CUBA NATIONAL SECURITY ADVISER ANTHONY LAKE HAS MET TWICE WITH OTHER TOP OFFICIALS TO DISCUSS ALTERNATIVE POLICIES IN CUBA AND OFFICIALS WHO HAVE BEEN AROUND FOR MORE THAN ONE ADMINISTRATION SAY THEY ARE BEING ENCOURAGED TO THINK MORE FREELY ABOUT CUBA BUT THEY ADMIT THAT ACHIEVING EVEN A MODEST CHANGE IN POLICY WOULD REQUIRE A CONSIDERABLE STRETCH PARTICULARLY BECAUSE THE PRESIDENT'S POLITICAL ADVISERS ARE HOPING TO WIN FLORIDA IN 1996 AND SEE CUBANAMERICANS AS A CRITICAL SWING VOTE IN THE MEANTIME THE ADMINISTRATION IS MAKING CONTINGENCY PLANS FOR HOW TO COPE WITH A MASSIVE FLOW OF REFUGEES SHOULD VIOLENCE ERUPT ON THE ISLAND BASICALLY WHAT WE ARE DOING IS WAITING FOR A DISASTER TO HAPPEN SO WE CAN REACT SAYS ONE OFFICIAL IF THE CIA IS RIGHT MR CLINTON MAY NOT HAVE TO WAIT TOO LONG 9311220127 931122 SHAWMUT DECISION SHOWS FED'S DIVISION OVER ADEQUACY OF FAIRLENDING RECORDS BY KENNETH H BACON AND SUZANNE ALEXANDER RYAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL RESERVE BOARD IS SHARPLY DIVIDED OVER AN ISSUE OF CRUCIAL IMPORTANCE FOR BANKS TRYING TO OVERCOME PAST DEFICIENCIES IN THEIR MINORITYLENDING RECORDS HOW MUCH IS ENOUGH THE EXTENT OF THE SPLIT BECAME CLEAR FRIDAY WHEN FED MEMBERS RELEASED THEIR EXPLANATIONS OF THEIR VOTES ON SHAWMUT NATIONAL CORP'S APPLICATION TO ACQUIRE NEW DARTMOUTH BANK MANCHESTER NH THE FED SHOCKED THE BANKING WORLD LAST MONDAY WHEN IT DENIED THE APPLICATION BECAUSE OF CONCERNS ABOUT SHAWMUT'S FAIRLENDING RECORD THE BOARD'S VIEW ON THE ADEQUACY OF BANKCOMMUNITY LENDING AND ANTIDISCRIMINATION EFFORTS IS BECOMING AN INCREASINGLY IMPORTANT FACTOR IN ITS APPROVAL OF MERGERS AND ACQUISITIONS CHAIRMAN ALAN GREENSPAN VICE CHAIRMAN DAVID MULLINS AND GOV LAWRENCE LINDSEY SAID THEY VOTED AGAINST THE ACQUISITION BECAUSE SHAWMUT'S RESPONSE TO FAIRLENDING LAWS SHOWED AN INATTENTION BY MANAGEMENT OF SHAWMUT TO IMPORTANT LEGAL REQUIREMENTS ALTHOUGH THE HARTFORD CONN BANKING COMPANY HAS LAUNCHED MEASURES TO OVERCOME PAST PROBLEMS THESE STEPS ARE RELATIVELY NEW AND HAVEN'T BEEN IN PLACE LONG ENOUGH TO ALLOW AN ADEQUATE EVALUATION EITHER OF THE EFFECTIVENESS OR SUFFICIENCY OF THESE INITIATIVES THEIR STATEMENT SAID BY CONTRAST WAYNE ANGELL EDWARD KELLEY AND SUSAN PHILLIPS SAID THEY VOTED TO APPROVE THE PURCHASE BECAUSE WE BELIEVE THAT SHAWMUT HAS MADE THE NECESSARY REFORMS TO ITS MANAGEMENT AND PROGRAMS TO CORRECT ANY PROBLEMS IN THESE AREAS AND TO PREVENT THESE PROBLEMS FROM RECURRING THE 33 TIE VOTE FAILED TO PRODUCE THE MAJORITY NECESSARY TO CLEAR THE MERGER THE FED'S SEVENTH MEMBER JOHN LAWARE RECUSED HIMSELF FROM THE MATTER BECAUSE HE'S A FORMER CHAIRMAN OF SHAWMUT THE THIRDLARGEST BANKING COMPANY IN NEW ENGLAND ALMOST A YEAR AGO THE FED SENT THE JUSTICE DEPARTMENT INFORMATION SUGGESTING THAT SHAWMUT MAY HAVE VIOLATED FAIRLENDING LAWS THE JUSTICE DEPARTMENT IS INVESTIGATING AND HASN'T DECIDED WHETHER TO CHARGE SHAWMUT WITH LENDING DISCRIMINATION BANKING LAWYERS SAY THE FED'S DECISION SENDS A MESSAGE TO ALL BANKS SEEKING APPROVAL FOR ACQUISITIONS THIS IS AN IMPORTANT POLICY STATEMENT SAID MICHAEL BRADFIELD A FORMER FED GENERAL COUNSEL WHO IS A MEMBER OF THE LAW FIRM JONES DAY REAVIS & POGUE IF YOU HAVEN'T REPORTED YOUR HOME MORTGAGE DISCLOSURE ACT DATA ACCURATELY AND YOU DON'T HAVE A GOOD COMMUNITY REINVESTMENT ACT RECORD YOU'RE GOING TO HAVE PROBLEMS AS ONE SIGN OF SHAWMUT'S MANAGEMENT PROBLEMS THE GREENSPAN FACTION POINTED TO THE INACCURACY OF DATA THAT BANKS MUST FILE ANNUALLY UNDER AN ACT THAT REQUIRES REPORTS ON MORTGAGELENDING ACTIVITY BY RACE SEX AND INCOME LEVEL THESE GOVERNORS ALSO CITED A LAW THAT BARS DISCRIMINATORY LENDING THE GOVERNORS WHO OPPOSED THE ACQUISITION DIDN'T CITE THE COMMUNITY REINVESTMENT ACT WHICH REQUIRES BANKS TO ADDRESS LOCALCREDIT NEEDS BUT EARLIER THIS MONTH MR LINDSEY THE FED'S LEADER ON COMMUNITY LENDING AND ANTIDISCRIMINATION MATTERS DISSENTED ON A PROPOSED ACQUISITION BY FIRST INTERSTATE BANCORP BECAUSE HE DIDN'T THINK THE LOS ANGELES BANK HAD WORKED AGGRESSIVELY TO MAKE MORTGAGES IN CERTAIN LOWINCOME AND MINORITY AREAS SHAWMUT TRIED TO BE UPBEAT IN ITS RESPONSE WE HAVE RECEIVED THE STATEMENTS OF THE GOVERNORS OF THE FEDERAL RESERVE AND ARE PLEASED THAT ALL SIX GOVERNORS RECOGNIZE THE POSITIVE STEPS THAT SHAWMUT HAS TAKEN IN LENDING TO MINORITIES THE BANK SAID IN A STATEMENT WE INTEND TO ADDRESS AND TO RESOLVE ALL OF THE CRITICISMS CONTAINED IN THE STATEMENT BY THE THREE GOVERNORS WHO VOTED NOT TO APPROVE THE APPLICATION AS A RESULT IT IS OUR INTENTION TO MOVE FORWARD ON OUR PLANS TO ACQUIRE NEW DARTMOUTH THE COMPANY SAID A PERSON FAMILIAR WITH SHAWMUT'S PLANS SAID THE BANKHOLDING COMPANY IS CONSIDERING A NUMBER OF OPTIONS INCLUDING SUBMITTING A NEW APPLICATION TO THE BOARD OR REQUESTING A REHEARING WITH THE BOARD TO PRESENT NEW MORTGAGELENDING DATA WITH ITS FIRST APPLICATION TO THE BOARD SHAWMUT SUBMITTED MORTGAGELENDING INFORMATION COVERING 19901992 AND THE FIRST SIX MONTHS OF 1993 THE PERSON SAID THESE DATA WERE INACCURATE IN SOME CASES UNDERSTATING DENIAL RATES FOR APPLICANTS OF ALL RACES LISTING LOANS FOR HOMES IN PLACES THAT DIDN'T EXIST AND LISTING LOANS FOR HOMES THAT WERE WORTH MUCH LESS THAN THE LOAN THE PERSON SAID BECAUSE SHAWMUT DIDN'T UNDERSTAND HOW TO CLASSIFY SOME LOANS SHAWMUT IS CONFIDENT THAT ITS INITIATIVES LAUNCHED THIS YEAR TO IMPROVE LENDING TO MINORITY COMMUNITIES WILL RESULT IN AN IMPROVED LENDING RECORD FOR 1993 THAT SHOULD RESOLVE THE BOARD'S CONCERNS THE BANK ADDED THAT IT BELIEVES IT ALREADY HAS THE BEST RECORD IN MINORITY LENDING OF ANY BANK IN NEW ENGLAND BUT IT MAY BE POLITICALLY DIFFICULT IF NOT IMPOSSIBLE FOR THE FED TO CHANGE ITS VOTE AS LONG AS THE JUSTICE DEPARTMENT INVESTIGATION IS PENDING IN LIGHT OF STRONG CONGRESSIONAL AND CLINTON ADMINISTRATION CONCERNS ABOUT LENDING DISCRIMINATION IT WOULD HAVE BEEN A COSTLY DECISION TO APPROVE THE APPLICATION SAID KAREN SHAW A WASHINGTON BANK CONSULTANT 9311220126 931122 WHEELINGPITTSBURGH'S NOTES NEW YORK WHEELINGPITTSBURGH CORP SAID IT RECEIVED MORE THAN HALF OF THE PRINCIPAL AMOUNT OF ITS 1225 FIRST MORTGAGE NOTES DUE 2000 AS A RESULT OF A TENDER OFFER THE TOTAL AMOUNT OUTSTANDING WAS 175 MILLION AND THE HOLDING COMPANY HAD SAID IT WOULDN'T GO FORWARD WITH THE TRANSACTION UNLESS IT RECEIVED MORE THAN 50 OF THE PRINCIPAL AMOUNT 9311220125 931122 MANY BUSINESSES ARE TAKING LONGER TO PAY THEIR BILLS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MANY BUSINESSES ARE TAKING LONGER TO PAY THEIR BILLS A SIGN THEY AREN'T CONVINCED THAT ECONOMIC RECOVERY IS AT HAND FOR THE THIRD QUARTER IN A ROW A DUN & BRADSTREET INFORMATION SERVICES SURVEY SHOWS WORSENED BILLPAYING PERFORMANCE THOSE THREE QUARTERS FOLLOW FIVE QUARTERS OF STEADY OR IMPROVING BEHAVIOR ACCORDING TO THE SURVEY WHICH IS TO BE RELEASED TODAY BUSINESSES ARE CONCERNED ABOUT THE RECOVERY AND SOMETIMES THAT MEANS I'M NOT GOING TO PAY AS QUICKLY AS I HAVE TO' SAID FRANK LOURENSO A CHEMICAL BANK EXECUTIVE VICE PRESIDENT IN CHARGE OF THE MIDDLEMARKET BANKING GROUP PEOPLE ARE TRYING TO STAY AS LIQUID AS POSSIBLE D&B'S QUARTERLY SURVEY IS BASED ON PAYMENT RECORDS OF ONE MILLION COMPANIES AS REPORTED BY THEIR SUPPLIERS TO DUN & BRADSTREET CORP THE SURVEY COMPARES THE LENGTH OF TIME IT TAKES COMPANIES TO PAY THEIR BILLS RELATIVE TO THE YEAREARLIER PERIOD FOR THE THREE MONTHS ENDED SEPT 30 THE SURVEY FOUND THAT THE NUMBER OF COMPANIES TAKING LONGER TO PAY THEIR BILLS EXCEEDED THE NUMBER PAYING MORE PROMPTLY BY 72 IN THE SECOND QUARTER THE NUMBER OF CASHHOARDING COMPANIES EXCEEDED THE NUMBER OF FASTERPAYING COMPANIES BY 62 STILL THERE ARE SIGNIFICANTLY FEWER SLOWERPAYING COMPANIES TODAY THAN IN THE THIRD QUARTER OF 1991 JUST AFTER THE RECESSION ENDED AT THAT TIME 104 MORE COMPANIES TOOK MORE TIME RATHER THAN LESS TO PAY SUPPLIERS ALTHOUGH MANY OF THE TRADITIONAL ECONOMIC INDICATORS ARE TELLING US THAT THE NATION IS RECOVERING CONSUMER CONFIDENCE IS DOWN SAID DAVID KRESGE A D&B VICE PRESIDENT THIS PLUS THE UNCERTAINTY SURROUNDING THE POLICY DEBATES ON HEALTH CARE AND TRADE POLICY RAGING IN WASHINGTON HAS CAUSED BUSINESSES TO BE VERY CONCERNED ABOUT CONSERVING THEIR CASH ON HAND FOR THE SECOND QUARTER IN A ROW COMPANIES WITH MORE THAN 500 EMPLOYEES SLOWED THEIR PAYMENTS SMALL COMPANIES ONE19 EMPLOYEES AND MEDIUMSIZED BUSINESSES 20499 EMPLOYEES ALSO SHOWED WORSENED BEHAVIOR WHICH IS TO BE EXPECTED WHEN PAYMENTS FROM THE LARGE FIRMS SLOW MR KRESGE SAID MANUFACTURING CONCERNS SHOWED THE SHARPEST DROP IN PERFORMANCE AMONG INDUSTRIES HE SAID IRWIN KELLNER CHIEF ECONOMIST FOR CHEMICAL BANKING CORP SAID THE TIGHTFISTEDNESS UNCOVERED IN THE D&B SURVEY REFLECTS THE MENTALITY OF CORPORATE AMERICA WHICH IS TO CONSERVE CASH ONCE THAT MENTALITY TAKES HOLD EVEN AS THERE ARE SIGNS THE ECONOMY IS IMPROVING THE HABIT IS HARD TO BREAK 9311220124 931122 TECHNOLOGY & HEALTH AT&T PLANS TO RAISE PRICES OF CERTAIN CALLS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT PLANS TO INCREASE PRICES FOR CERTAIN CALLS A MOVE THAT WILL BOOST OVERALL REVENUE BY ABOUT 336 MILLION THE TELECOMMUNICATIONS COMPANY SAID THE CHARGE ADDED TO THE COST OF DOMESTIC COLLECT AND SOME OPERATORDIALED CALLS WILL INCREASE TO 205 FROM 194 CHARGES BILLED TO THIRDPARTY NUMBERS WILL INCREASE TO 211 FROM 2 WHILE BUSYLINE VERIFICATION AND BUSYLINE INTERRUPTION CALLS WILL EACH INCREASE TO 250 FROM 2 THE COMBINED CHANGES IN OPERATORHANDLED AND CALLINGCARD RATES AS WELL AS INCREASED SERVICE CHARGES WILL RESULT IN AN AVERAGE 47 PRICE INCREASE HOWEVER CONSUMERS WHO ONLY MAKE CALLS IN THE US AND DIAL DIRECTLY FROM HOME WON'T SEE A CHANGE IN THEIR MONTHLY BILLS AT&T SAID RATES FOR DIRECTDIALED CALLS FROM THE US TO 92 COUNTRIES WILL RISE INCREASING RATES FOR SUCH CALLS BY AN AVERAGE OF 4 RATES ON INTERNATIONAL OPERATORASSISTED AND CALLINGCARD CALLS BETWEEN THE US AND 48 COUNTRIES WILL RISE AN AVERAGE OF 7 IN ADDITION THE SERVICE CHARGE ADDED TO THE COST OF OPERATORDIALED CALLS BETWEEN THE US AND CANADA WILL INCREASE TO 205 FROM 194 WHILE THE CHARGE FOR ALL OTHER COUNTRIES WILL RISE TO 4 FROM 3 AT&T SAID THE CHARGE ADDED TO INTERNATIONAL CALLINGCARD CALLS DIALED BY THE CUSTOMER WILL INCREASE TO 2 FROM 175 WHILE THE CHARGE FOR CALLS TO AT&T INTERCONTINENTAL DIRECTORY ASSISTANCE WILL RISE TO 395 FROM 3 SEPARATELY AT&T SAID IT PLANS TO SIMPLIFY THE PRICING STRUCTURE FOR SOME INTERSTATE AND INTERNATIONAL 800 SERVICES THE COMPANY SAID SUBSCRIBERS TO ITS 800 SERVICE WILL HAVE TO PAY A 30SECOND MINIMUM AMOUNT AND AN AMOUNT PER SECOND THEREAFTER AS A RESULT THE AVERAGE BUSINESS CUSTOMER'S MONTHLY BILL COULD INCREASE BY 2 AT&T SAID THE COMPANY PREVIOUSLY USED AN AVERAGING FORMULA TO CALCULATE COSTS FOR THE FIRST 30 SECONDS THE INDUSTRY STANDARD IS A MINIMUM CHARGE FOR THE FIRST 30 SECONDS AND INCREMENTAL CHARGES FOR SUBSEQUENT SIXSECOND INTERVALS MCI COMMUNICATIONS CORP AND SPRINT CORP SAID THEY HAVE NO CURRENT PLANS TO RAISE RATES ON SIMILAR SERVICES 9311220123 931122 MARKETING & MEDIA ADVERTISING AT&T SELECTS FCB/LEBER KATZ TO REPLACE AYER AS PRIME AGENCY BY KEVIN GOLDMAN AMERICAN TELEPHONE & TELEGRAPH ITS DOMINANCE OF THE LONGDISTANCE MARKET UNDER INCREASING ATTACK REPLACED AYER AS ITS PRIMARY ADVERTISING AGENCY AFTER MORE THAN THREEQUARTERS OF A CENTURY CATAPULTED TO THE LEAD ROLE IN AT&T'S 200 MILLION CONSUMER LONGDISTANCE ACCOUNT WHICH ENCOMPASSES THREE AD AGENCIES IS FCB/LEBER KATZ PARTNERS THE FOOTE CONE & BELDING COMMUNICATIONS UNIT THAT PREVIOUSLY HAD THE SMALLEST PIECE OF THE COMMUNICATIONS GIANT'S ADVERTISING AT&T'S THIRD AGENCY YOUNG & RUBICAM WILL RETAIN THE INTERNATIONAL LONGDISTANCE BUSINESS AS WELL AS OTHER PORTIONS WHICH HAVE YET TO BE DECIDED AYER WILL BECOME A SECONDARY AGENCY FOR AT&T AND RETAIN AMONG OTHER PORTIONS THE CORPORATE IMAGE BUSINESS NEVERTHELESS IT IS A MAJOR IF NOT UNEXPECTED LOSS FOR AYER WHICH HAS BEEN ASSOCIATED WITH AT&T SINCE 1908 AT&T SAID IT WOULD REVIEW THE INTERTWINED AND COMPLEX RESPONSIBILITIES FOR ITS AGENCIES LAST MONTH WHICH TOTAL FIVE THE MOVE CAME LESS THAN TWO MONTHS AFTER A HARDCHARGING EXECUTIVE JOSEPH P NACCHIO ASSUMED THE ROLE OF PRESIDENT OF AT&T'S CONSUMER BUSINESS THE END FOR AYER APPEARED PREORDAINED NEARLY TWO WEEKS AGO WHEN MR NACCHIO EFFECTIVELY BURIED AYER'S HARSHLY CRITICIZED AND PUZZLING AD CAMPAIGN THE I PLAN THE I PLAN WAS CONDEMNED BY ADVERTISING TESTING FIRMS AND CONSUMERS FOR BEING TOO CONFUSING FOR INSTANCE APPARENTLY FEW KNEW THAT THE I STOOD FOR INDIVIDUAL THIS MONTH MR NACCHIO SAID AT&T MUST CREATE EMOTIONAL TIES TO ITS CUSTOMERS IF IT WANTS TO BEAT ITS COMPETITION ESPECIALLY MCI COMMUNICATIONS WHICH HAS A HIGHLY SUCCESSFUL ADVERTISING AND MARKETING PLAN TITLED FRIENDS AND FAMILY INSTEAD OF LEADING IN CREATING ADVERTISING AND MARKETING PLANS AYER WILL NOW FOLLOW WE WILL BE WORKING WITH FCB AND THEY WILL SET THE TONE THEME AND DO THE MEDIA PLANNING FOR THE 1994 CAMPAIGN SAYS DICK MARTIN AT&T'S EXECUTIVE VICE PRESIDENT OF PUBLIC RELATIONS AND CORPORATE ADVERTISING MR MARTIN DECLINED TO BE SPECIFIC AS TO WHAT FCB PRESENTED IN A THREEHOUR MEETING WITH AT&T'S EIGHTMEMBER REVIEW COMMITTEE LAST WEEK BEYOND SAYING THAT ALL THE AGENCIES GAVE US SOME OF THE BEST INSIGHTS INTO THE LONGDISTANCE BUSINESS THE POSSIBLE EDGE FOR FCB IT PROVIDED AT&T WITH IDEAS INTO WHAT THE COMPETITIVE RESPONSE WOULD BE TO FCB'S AD CAMPAIGN AND WHAT AT&T'S COUNTERRESPONSE COULD BE SAYS MR MARTIN OF FCB THEY HAD THEIR ACT TOGETHER BAREKNUCKLED AND QUICK REACTION TO COMPETITORS MAY BE JUST WHAT MR NACCHIO WANTED TO HEAR FROM THOSE AGENCIES VYING FOR THE LEAD ROLE MR NACCHIO SAID EARLIER THIS MONTH THAT AT&T TOOK 22 MONTHS TO RESPOND TO MCI'S FRIENDS AND FAMILY PLAN WHICH OFFERS A DISCOUNT IN RETURN FOR PROVIDING THE NAMES OF FRIENDS AND RELATIVES WHO COULD SIGN UP FOR MCI SERVICE TO PREVENT A REPEAT OF THAT MARKETING MISSTEP MR NACCHIO SAID A DELTA FORCE WOULD BE EMPLOYED TO RESPOND QUICKLY TO RIVALS SPOKESMEN FOR AT&T'S THREE AGENCIES SAID EXECUTIVES WOULDN'T BE AVAILABLE TO COMMENT THE AGENCIES WERE ALLOWING AT&T TO DO THE TALKING BUT THE NEWS IS UNWELCOME AT AYER WHICH HAS SCORED ONLY MODEST WINS LATELY AND SUFFERED SOME CLIENT LOSSES OUT THE DOOR WENT SHEARSON LEHMAN DUNLOP SPORTING GOODS AND A DUPONT UNIT RECENTLY AYER WON WONDER BREAD PEP BOYS BAYER SELECT COUGH AND COLD AND WOLVERINE'S FOOTWEAR AYER WILL RETAIN THE FUTURISTIC YOU WILL CORPORATE IMAGE CAMPAIGN FOR AT&T WHICH FEATURES PEOPLE SAILING THROUGH A HIGHWAY TOLL BOOTH WITHOUT STOPPING AND HAVING THE ABILITY TO RECEIVE FACSIMILE MESSAGES WHILE SITTING AT A BEACH AYER'S SPOKESMAN SAID THAT WHILE THE RESHUFFLING LEFT THE AGENCY IN A FOLLOW AND NOT LEAD POSITION WE'RE NOT DEAD IT'S A BLOW AYER WILL RETAIN 100 MILLION IN BILLINGS AT&T'S SHARE OF THE ROUGHLY 30 BILLION MARKET FOR CONSUMER LONGDISTANCE SERVICE CONTINUES TO SLIP FROM ITS CURRENT LEVEL OF 60 AND ITS LONGDISTANCE REVENUE IS FLAT MCI CONTINUES TO FARE WELL WITH 19 OF THE MARKET IT HAS SIGNED UP MORE THAN 10 MILLION NEW CALLERS UNDER THE FRIENDS AND FAMILY PROGRAM THE DECISION TO REDUCE AYER'S ROLE CAME LATE THURSDAY AFTER AT&T'S REVIEW COMMITTEE HEARD FIVE PRESENTATIONS EACH LASTING THREE HOURS OVER THREE DAYS AT THE AGENCIES OFFICES THE OTHERS COMPETING IN THE REVIEW WERE WPP GROUP'S OGILVY & MATHER AND INTERPUBLIC GROUP'S MCCANNERICKSON MR MARTIN SAYS AN INITIAL DECISION WAS REACHED WEDNESDAY NOT LONG AFTER FCB DELIVERED ITS PITCH FCB MADE THE FINAL PRESENTATION WEDNESDAY MORNING AFTER FURTHER DISCUSSION THE FINAL DECISION WAS REACHED AND THE AGENCIES WERE NOTIFIED FRIDAY MORNING AT&T HOPES TO LAUNCH ITS NEW ADVERTISING FROM FCB IN LATE JANUARY AND POSSIBLY APPEAR ON THE SUPER BOWL WHEN A LOT OF ATTENTION IS PAID TO THE ADVERTISING MR MARTIN SAYS THERE IS NO QUICK FIX TO AT&T'S ADVERTISING AND MARKETING THERE IS NO SILVER BULLET HE SAYS YOU'RE NOT GOING TO TURN ON THE SUPER BOWL AND BE BOLTED FROM YOUR CHAIR TO SUDDENLY BECOME A SUBSCRIBER TO AT&T SAATCHI & SAATCHI ADVERTISING NEW YORK RESIGNED FROM HELENE CURTIS INDUSTRIES' FINESSE SALON SELECTIVES AND VIBRANCE SHAMPOO AND DEGREE ANTIPERSPIRANT ACCOUNTS COMBINED BILLINGS ARE 80 MILLION SAATCHI SAID SAATCHI A UNIT OF SAATCHI & SAATCHI CO HAD CREATED ADS FOR THE HELENE CURTIS BRANDS IN THE US AUSTRALIA AND NEW ZEALAND WHILE AT THE SAME TIME WORKING FOR PROCTER & GAMBLE'S HEAD & SHOULDERS AND VIDAL SASSOON BRANDS IN EUROPE AND ASIA P&G AND HELENE CURTIS INCREASINGLY WANT GLOBAL AD CAMPAIGNS FOR THEIR SHAMPOO BRANDS EXECUTIVES SAID MAKING IT ONLY A MATTER OF TIME BEFORE SAATCHI HAD TO GIVE ONE OF THEM UP HELENE CURTIS'S ACCOUNT AT SAATCHI WAS DWARFED BY THE ESTIMATED 500 MILLION THAT P&G SPENDS THERE SO IT WAS THE NATURAL CANDIDATE TO GET THE BOOT P&G RECENTLY UNSEATED HELENE CURTIS FROM THE NO 1 SPOT IN THE 45 BILLION SHAMPOO AND CONDITIONER BUSINESS RICHARD W FRANK HELENE CURTIS VICE PRESIDENT OF MARKETING SAID THE DECISION TO SPLIT WITH SAATCHI WAS MUTUAL AN AGENCY SEARCH IS UNDER WAY HE SAID BUT DECLINED TO IDENTIFY THE CONTENDERS A DECISION IS EXPECTED NEXT MONTH HE SAID BAYER BESS VANDERWARKER OF CHICAGO RETAINS CURTIS'S ESTIMATED 25 MILLION SUAVE BUSINESS INDUSTRY EXECUTIVES SAID CURTIS ISN'T HAVING AN EASY TIME FINDING A BIG INTERNATIONAL AGENCY FOR ITS BRANDS BECAUSE MOST BIG NETWORKS HAVE CONFLICTING ACCOUNTS FROM COMPANIES SUCH AS P&G JOHNSON & JOHNSON AND GILLETTE EXECUTIVES SAID POSSIBLE CONTENDERS ARE D'ARCY MASIUS BENTON & BOWLES NEW YORK FOOTE CONE & BELDING CHICAGO AND SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES LEO BURNETT CHICAGO SAID IT WAS OFFERING VOLUNTARY EARLYRETIREMENT PACKAGES TO APPROXIMATELY 20 EMPLOYEES THE AGENCY DECLINED TO GIVE SPECIFICS OF WHAT IT CALLED A SPECIAL SEPARATION INCENTIVE PROGRAM FURTHER THE AGENCY WHICH ALMOST NEVER HAS LAYOFFS SAID OVER THE NEXT FEW WEEKS WE WILL BE CAREFULLY EVALUATING OUR STAFFING NEEDS FOR THE COMING YEAR BURNETT HAS 2250 EMPLOYEES DOMESTICALLY HEINZ HJ HEINZ'S OREIDA SPECIALTY PRODUCTS UNIT TAPPED THE SAN FRANCISCO OFFICE OF FOOTE CONE & BELDING TO HANDLE ITS NEW BAGEL BITES ROSETTO FROZEN PASTA AND IGOR'S PIROSHKIS BRANDS ALSO CONTENDING FOR THE NEW ACCOUNT WERE THE LOS ANGELES SHOPS CHIAT/DAY AND LORD DENTSU & PARTNERS AND THE SAN FRANCISCO OFFICE OF KETCHUM ADVERTISING BILLINGS HAVEN'T BEEN DETERMINED SAID CONSULTANT ALAN KRINSKY CHIAT IMAGINATION NETWORK INC AN INTERACTIVE ENTERTAINMENT COMPANY TAPPED CHIAT/DAY LOS ANGELES FOR A NEW AD ACCOUNT BILLINGS COULDN'T BE DETERMINED INN SAID IT PLANS TO RUN PRINT ADS AND PROBABLY TELEVISION AND INFOMERCIALS BASED IN OAKHURST CALIF INN IS JOINTLY OWNED BY SIERRA ONLINE INC GENERAL ATLANTIC PARTNERS AND AT&T 9311220122 931122 GLOBAL VIEW APARTHEID IS DEAD NOW COMES THE HARD PART BY GEORGE MELLOAN SOUTH AFRICA'S PARLIAMENT CONVENES TODAY TO APPROVE A NEW CONSTITUTION ENDING APARTHEID AND GRANTING A VOTE TO ALL RACES IN ELECTIONS SET FOR NEXT APRIL 27 THE DOCUMENT SIGNED LAST WEEK BY 19 PARTY LEADERS ENDS A 45YEAR EXPERIMENT IN RACIAL CLASSIFICATION AND SEPARATION THAT REPELLED MOST OF THE WORLD'S PEOPLE REMAINING ECONOMIC SANCTIONS AGAINST SOUTH AFRICA WILL SURELY NOW BE DROPPED THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK ALWAYS ON THE LOOKOUT FOR NEW CLIENTS STAND READY TO PROFFER LARGE SUMS PERHAPS APPROACHING 2 BILLION BETWEEN THE TWO OF THEM MOST BETS SAY THAT NEXT APRIL POWER WILL PASS TO AFRICAN NATIONAL CONGRESS PRESIDENT NELSON MANDELA FROM PRESIDENT FW DE KLERK ENDING 46 YEARS OF NATIONAL PARTY RULE AFTER 81 YEARS THE ANC WILL HAVE FINALLY WON SUPPORTERS IN THE US AND EUROPE SHOULD BE CHEERING BUT THE CHEERING HAS BEEN SURPRISINGLY SUBDUED COMPARED TO THE NOISE OF THE 1980S DEBATE ON ECONOMIC SANCTIONS THAT FORCED AMERICAN COMPANIES TO PULL OUT OF SOUTH AFRICA MAYBE AMERICANS WERE DISTRACTED BY NAFTA AND APEC LAST WEEK OR MAYBE THERE IS TREPIDATION AMONG THE ANC'S FORMER SUPPORTERS ABOUT WHAT MIGHT COME NEXT IN SOUTH AFRICA AND WHETHER THEY WISH TO BE ASSOCIATED WITH IT SUCH CONCERNS WOULD BE MORE THAN JUSTIFIED THE PROBLEM IS NOT WITH MR DE KLERK AND MR MANDELA WHO CAN INDEED COUNT THE NEW CONSTITUTION AS A REMARKABLE AND FORWARDLOOKING ACHIEVEMENT BUT SOUTH AFRICA'S DRAMATIC LEAP TOWARD DEMOCRACY WILL UNLEASH POLITICAL FORCES WHOSE POWER AND DIRECTION ARE AT THIS POINT UNMEASURABLE THE APARTHEID THAT DF MALAN AND HF VERWOERD DEVISED SO LONG AGO WAS THE ULTIMATE IN SOCIAL ENGINEERING A PLACE FOR EVERYONE AND EVERYONE IN HIS PLACE WITH WHITES ON TOP AND BLACKS COLOREDS AND ASIANS DOWN BELOW NOW EVERYONE WILL SEEK HIS OWN PLACE ONE GETS A SENSE OF HISTORICAL INEVITABILITY AS EARLY AS THE 1970S ENLIGHTENED SOUTH AFRICAN WHITES KNEW THAT THEIR COUNTRY COULD NOT MAKE ECONOMIC PROGRESS WITHOUT DRAWING ON THE SKILLS AND ENERGY OF THE VASTLY LARGER NONWHITE POPULATION THE PROCESS OF GIVING NONWHITES MORE RIGHTS BEGAN THEN IT MIGHT HAVE GONE MORE SMOOTHLY AND HAVE BETTER PROSPECTS HAD NOT THE US AND ITS WESTERN ALLIES INFLICTED DAMAGE ON THE ECONOMY WITH ECONOMIC SANCTIONS ECONOMIC DECLINE IS NOT A GOOD MIDWIFE FOR PEACEFUL POLITICAL CHANGE THERE IS A PARALLEL BETWEEN THE BREAKDOWN OF APARTHEID AND THE COLLAPSE OF COMMUNISM GOING BEYOND THE FACT THAT MANY COLD WARRIORS STOPPED DEFENDING THE SOUTH AFRICAN REGIME WHEN THEY NO LONGER FEARED A SOVIET TAKEOVER THE PARALLEL IS THAT PRETORIA AS WITH MOSCOW UTILIZED A HUGE BUREAUCRACY TO CONTROL THE LIVES OF A VAST MAJORITY OF THE COUNTRY'S CITIZENS AND ULTIMATELY COULD NO LONGER SUSTAIN THAT PRACTICE DEMOCRACY IS ITSELF AN ACT OF FAITH AND MUST BE IF TYRANNIES ARE EVER TO BE ABOLISHED BUT AFRICA'S LARGEST INDEPENDENT NATIONS HAVE HAD A TERRIBLE STRUGGLE TRYING TO EMPLOY DEMOCRACY MAINLY BECAUSE POLITICAL DIFFERENCES HAVE SO OFTEN ERUPTED INTO TRIBAL WARS NIGERIA WHICH ONCE SHOWED GREAT PROMISE SUFFERED AN ARMED INSURRECTION OF THE IBO TRIBE IN THE LATE 1960S AND HAS SINCE HAD REVOLVING DOOR GOVERNMENTS THE LATEST IS ANOTHER MILITARY DICTATORSHIP ANGOLA HAS HAD A CIVIL WAR FOR 18 YEARS MOZAMBIQUE HAS BEEN NEARLY DESTROYED BY BAD GOVERNMENT AND FIGHTING ZIMBABWE SUFFERED A WAR BETWEEN THE SHONA AND NDEBELE TRIBES IN THE 1980S THERE IS NEW TROUBLE AHEAD AS PRESIDENT ROBERT MUGABE UNABLE TO CONQUER HIGH UNEMPLOYMENT AND OTHER ECONOMIC AND SOCIAL ILLS IS ONCE AGAIN MAKING POLITICS AGAINST WHITE FARMERS HE IS RENEGING ON AN OLD PROMISE TO COMPENSATE OWNERS FAIRLY FOR ANY LAND ACQUIRED FOR RESETTLING BLACKS THE FUNDAMENTAL PROBLEM FOR MUCH OF AFRICA WAS THAT SO MANY POSTCOLONIAL BLACK LEADERS DREW THEIR INSPIRATION FROM MARXISM RATHER THAN FROM THE WESTERN DEMOCRACIES GIVEN THEIR LEANINGS TOWARD CENTRAL ECONOMIC DIRECTION AND THEIR SUSPICIONS OF PRIVATE ENTERPRISE THEY CREATED THE KIND OF ECONOMIC CHAOS THAT INEVITABLY AFFLICTS MARXIST REGIMES WITH THE ADDED PROBLEM THAT THEY WERE POOR TO BEGIN WITH MARXISM'S AUTHORITARIAN STYLE INCREASED THE LIKELIHOOD OF CIVIL WARS SADLY SOUTH AFRICA MAY NOT BE ABLE TO AVOID THIS PITFALL MR MANDELA HAS BEEN TRAVELING THE WORLD INVITING FOREIGN INVESTMENT SAYING HE WILL TREAT INVESTORS FAIRLY HE HAS SOME ABLE YOUNG TECHNOCRATS TO DRAW ON FOR GOVERNMENT POSTS BUT BECAUSE OF MASSIVE BLACK UNEMPLOYMENT HE WILL COME UNDER HEAVY PRESSURE TO FURTHER EXPAND THE ALREADY SWOLLEN GOVERNMENT WORK FORCE FURTHER BURDENING THE ECONOMY THAT WILL INEVITABLY GIVE GREATER POWER TO THE LEFT WING OF THE ANC THE STRONGEST FORCE FOR MARKET DEMOCRACY AMONG BLACK LEADERS IS MANGOSUTHU BUTHELEZI HEAD OF THE INKATHA FREEDOM PARTY AND LEADER OF THE COUNTRY'S LARGEST TRIBE THE ZULUS THE IFP AND THE ANC ALREADY ARE FIGHTING A LOWGRADE CIVIL WAR IN WHICH SOME 12500 BLACKS HAVE BEEN KILLED OVER THE LAST THREE YEARS MR BUTHELEZI LEADERS OF TWO OF THE BLACK HOMELANDS ABOLISHED BY THE CONSTITUTION CISKEI AND BOPHUTHATSWANA AND AN ALLIANCE OF HOLDOUT WHITES ALL OPPOSE THE CONSTITUTION MR BUTHELEZI FEARS THAT THE ANC ONCE IN POWER WILL FORGET MR MANDELA'S PROMISES AND IT WILL BE THAT OLD AFRICAN STORY ONE MAN ONE VOTE ONE TIME THE ANC REMAINS ALLIED WITH THE SOUTH AFRICAN COMMUNIST PARTY COMMUNIST CHIEFTAIN JOE SLOVO A WHITE IS MAKING THE LOUDEST THREATS ABOUT HOW THE RECALCITRANTS WILL BE TREATED IF THEY CONTINUE TO RESIST THE NEW CONSTITUTION THE MILITARY WING OF THE ANC USUALLY ASSUMED TO BE THE FURTHEST LEFT WILL BE FOLDED INTO THE SOUTH AFRICAN ARMY UNDER THE NEW CONSTITUTION AND IT IS ANYONE'S GUESS WHAT THE RESULT OF THAT WILL BE IF IT BRINGS CONFLICT WITHIN THE ARMED FORCES THEMSELVES IT COULD INCREASE THE CHANCES OF CIVIL WAR RATHER THAN DIMINISH THEM AS THE MESSRS DE KLERK AND MANDELA PRESUMABLY INTENDED PERHAPS THESE FEARS WON'T BE REALIZED MAYBE MR BUTHELEZI AND THE LEADERS OF CISKEI AND BOPHUTHATSWANA WILL EVENTUALLY BE PERSUADED THAT THE POWERS THE CONSTITUTION AWARDS TO NINE REGIONAL GOVERNMENTS WILL PROTECT THEM FROM A CENTRAL TYRANNY THERE IS MORE COMPROMISING THAT NEEDS TO BE DONE NOT JUST BETWEEN WHITE AND BLACK BUT BETWEEN BLACK AND BLACK BUT AS WE ALREADY HAVE LEARNED SINCE THE BREAKUP OF THE SOVIET EMPIRE THE BIRTH OF NEW NATIONS DOES NOT COME EASY IN THIS AGE OF EASY ACCESS TO LETHAL ARMS SOUTH AFRICA IS UNDERGOING NOTHING SHORT OF THAT A NATIONAL REBIRTH 9311220121 931122 GROUPE BULL PLANS OVERHAUL OF ORGANIZATION REVAMP AIMS TO RETURN CONCERN TO PROFITABILITY BY END OF NEXT YEAR SPECIAL TO THE WALL STREET JOURNAL PARIS GROUPE BULL FRANCE'S AILING STATECONTROLLED COMPUTER MAKER SKETCHED OUT AN ORGANIZATIONAL OVERHAUL THAT OFFICIALS BELIEVE WILL RETURN THE COMPANY TO PROFITABILITY BY THE END OF 1994 BULL'S REORGANIZATION THE BRAINCHILD OF NEW CHAIRMAN JEANMARIE DESCARPENTRIES AIMS AT PROFITABILITY ONE YEAR EARLIER THAN PROJECTIONS BY FORMER CHAIRMAN BERNARD PACHE IT SETS OUT A DECENTRALIZED INVERTED PYRAMID STYLE OF MANAGEMENT THAT STRESSES BULL'S CUSTOMERS AT THE TOP MR DESCARPENTRIES ALSO IS FORMING A NEW 10MEMBER EXECUTIVE BOARD AS WELL AS A CONSULTATIVE BODY OF MEMBERS FROM INSIDE AND OUTSIDE OF FRANCE THAT WILL ADVISE BULL'S TOP MANAGEMENT BUT SKEPTICAL INDUSTRY OBSERVERS SAID BULL CAN'T MAKE IT TO PROFITABILITY ON JUST MANAGEMENT REORGANIZATION ALONE AND MR DESCARPENTRIES HAS A REPUTATION FOR TRYING TO APPLY WHAT CRITICS SAY ARE EXCESSIVELY AVANTE GARDE MANAGEMENT TECHNIQUES HE LEFT HIS FORMER JOB AS CHAIRMAN OF CARNAUDMETALBOX A LARGE CAN AND PACKAGING COMPANY AMID COMPLAINTS THAT HIS STYLE WAS DISRUPTIVE COMPANY OFFICIALS COULDN'T OFFER MORE SPECIFIC DETAILS SUCH AS COSTCUTTING PLANS AND THE THORNY ISSUE OF JOB REDUCTIONS BULL OFFICIALS FRIDAY SAID ONLY THAT THE COMPANY WOULD ATTACK COSTREDUCTIONS SUCH AS OVERHEAD EXPENSES ON THE NONSALARY LEVEL FIRST THE COMPANY ADDED THAT IT WOULD RESORT TO COSTCUTTING ON THE SALARY LEVEL PRESUMABLY THROUGH JOB CUTS AND LAYOFFS IF NONSALARY MEASURES DON'T WORK IN JULY BULL ANNOUNCED THE ELIMINATION OF 6500 JOBS FOR 199394 THROUGH VOLUNTARY DEPARTURES REASSIGNMENTS AND SOME LAYOFFS HOWEVER BULL AND OTHER STATECONTROLLED ENTERPRISES HAVE AVOIDED THE ISSUE OF LAYOFFS SINCE LAST MONTH'S AIR FRANCE STRIKES FORCED THE GOVERNMENT TO SCUTTLE LAYOFF PLANS AT THE STATEOWNED AIRLINE BULL HAD A FIRSTHALF 1993 NET LOSS OF 198 BILLION FRANCS 3339 MILLION ON TOP OF TOTAL LOSSES OF EIGHT BILLION FRANCS IN 1992 AND 1991 BULL OFFICIALS ALSO CONFIRMED CONTINUING DISCUSSIONS WITH MINORITY SHAREHOLDERS INTERNATIONAL BUSINESS MACHINES CORP OF THE US AND JAPAN'S NEC CORP WHICH HOLD STAKES OF 568 AND 47 RESPECTIVELY BUT DECLINED TO GIVE FURTHER DETAILS MR LONGUET PREVIOUSLY SAID THE GOVERNMENT HOPES THE TWO COMPANIES WILL PARTICIPATE IN BULL'S RECAPITALIZATION TO THE TUNE OF 700 MILLION FRANCS A JAPANESE NEWSPAPER FRIDAY REPORTED THAT NEC HAS BEEN ASKED TO KICK IN SEVEN BILLION YEN IN EXCHANGE FOR AN INCREASED EQUITY STAKE IN BULL AN NEC OFFICIAL IN TOKYO SAID THE COMPANY IS STUDYING THE REQUEST FOR BILLIONS OF YEN FOR BULL BUT ADDED THAT A FINAL DECISION WON'T BE MADE FOR AT LEAST A COUPLE OF MONTHS 9311220120 931122 HEWLETTPACKARD PLANS TO REPURCHASE STOCK PALO ALTO CALIF HEWLETTPACKARD CO SAID ITS BOARD AUTHORIZED THE PURCHASE OF UP TO 500 MILLION OF THE COMPANY'S STOCK ON THE OPEN MARKET THE BUYBACK IS THE LATEST IN A SERIES OF STOCK BUYBACKS BY THE COMPUTER COMPANY AMOUNTING TO MORE THAN 2 BILLION SINCE EARLY 1989 THE COMPANY SAID IT STILL HAS 80 MILLION LEFT OVER FROM THE BOARD'S LATEST PURCHASE AUTHORIZATION IN MAY 1992 AN HP COMPANY SPOKESMAN SAID THE BUYBACK WAS MEANT TO PREVENT DILUTION OF THE COMPANY'S SHARES MOST OF THE STOCK IS RECYCLED THROUGH STOCK PLANS FOR THE COMPANY'S 96000 EMPLOYEES HE SAID HP'S STOCK PRICE HAS FLUCTUATED SINCE THE MAY 1992 AUTHORIZATION RISING AS HIGH AS 8750 A SHARE AND FALLING TO 51625 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY THE COMPANY'S SHARES CLOSED UNCHANGED AT 74 HP SAID THE BUYBACK WOULD PROCEED ACCORDING TO MARKET CONDITIONS AND SET NO TIME LIMIT FOR THE MOVE 9311220119 931122 FIRST CITY BANCORP'S EXVICE CHAIRMAN IS CONVICTED OF FRAUD HOUSTON THE FORMER VICE CHAIRMAN OF FAILED FIRST CITY BANCORP OF TEXAS WAS CONVICTED OF FRAUD MONEY LAUNDERING AND OTHER CHARGES BY A FEDERAL JURY HERE FRANK C CIHAK 51 YEARS OLD WAS CONVICTED OF 32 CRIMINAL COUNTS HE WAS ACCUSED OF MAKING 38 MILLION IN ILLEGAL LOANS AND RECEIVING KICKBACKS FROM SEVERAL CONSULTANTS HE HIRED ONE CONSULTANT LLOYD SWIFT 52 OF LAS VEGAS WAS CONVICTED OF 10 COUNTS ANOTHER WILLIA ALLEN 62 OF CHICAGO WAS CONVICTED OF EIGHT COUNTS BOTH WERE CONVICTED OF FRAUD AND MONEY LAUNDERING MR CIHAK ALONG WITH FORMER FIRST CITY CHAIRMAN A ROBERT ABBOUD HELPED LEAD A BAILOUT OF FIRST CITY IN 1988 WITH 970 MILLION IN FEDERAL ASSISTANCE BUT THEY WERE FORCED OUT AS THE BANKING COMPANY'S PROBLEM REALESTATE LOANS CONTINUED TO GENERATE LOSSES MR ABBOUD WASN'T CHARGED REGULATORS SEIZED THE COMPANY'S 20 BANKS LAST YEAR AFTER FAILED EFFORTS TO FIND A MERGER PARTNER OR INVESTOR THE COMPANY WHICH IS IN BANKRUPTCYLAW PROCEEDINGS SUED THE FEDERAL DEPOSIT INSURANCE CORP IN SEPTEMBER CALLING THE SEIZURE IMPROPER AND SEEKING 3 BILLION IN DAMAGES THE CHARGES AGAINST MR CIHAK AND THE TWO CONSULTANTS WERE THE FIRST TO BE BROUGHT IN THE CONTINUING FEDERAL INVESTIGATION MR CIHAK COULD FACE 12 TO 15 YEARS IN PRISON WHILE MR SWIFT AND MS ALLEN COULD FACE TERMS OF EIGHT TO 10 YEARS SENTENCING IS SCHEDULED FOR FEB 22 MIKE RAMSEY A LAWYER FOR MR CIHAK SAID FRIDAY'S VERDICT WAS A SURPRISE MR CIHAK MAINTAINS HE IS INNOCENT HE SAID WE ARE GOING TO APPEAL ROBERT SCARDINO MS ALLEN'S LAWYER CALLED THE PROSECUTION'S EVIDENCE CIRCUMSTANTIAL AND SAID HE ALSO PLANS TO APPEAL ROY BEENE A LAWYER FOR MR SWIFT SAID NO DECISION ON AN APPEAL HAD BEEN MADE 9311220118 931122 WHO'S NEWS CONRAIL INC NAMES DAVID LEVAN TO HEAD 4 NEW SERVICE GROUPS PHILADELPHIA CONRAIL INC SAID IT NAMED DAVID M LEVAN AN EXECUTIVE VICE PRESIDENT AND PUT HIM IN CHARGE OF FOUR NEWLY CREATED SERVICE GROUPS MR LEVAN 47 YEARS OLD HAD BEEN SENIOR VICE PRESIDENT OPERATIONS SINCE 1992 IN HIS NEW POSITION MR LEVAN WILL BE RESPONSIBLE FOR THE NEW SERVICE GROUPS WHILE CONTINUING TO OVERSEE ENGINEERING MECHANICAL MATERIALS AND PURCHASING CUSTOMER SERVICE AND TRANSPORTATION FUNCTIONS THE FOUR SERVICE GROUPS INTERMODAL AUTOMOTIVE UNIT TRAIN AND GENERAL SERVICE WILL BEGIN MANAGING THEIR BUSINESSES ON JAN 1 THE SERVICE GROUPS REPRESENT AN EVOLUTION OF THE TRANSPORTATION SERVICE NETWORKS SET UP BY CONRAIL LAST YEAR TO PROVIDE SPECIALIZED MOVEMENT OF DIFFERENT TYPES OF FREIGHT CONRAIL SAID THE SERVICE GROUPS WILL BRING TOGETHER MARKETING AND SALES PRODUCT DEVELOPMENT BILLING EQUIPMENT AND ASSET MANAGEMENT AS WELL AS THE TRANSPORTATION SERVICE NETWORKS THE COMPANY NAMED FOUR EXECUTIVES TO HEAD THE NEW SERVICE GROUPS GORDON H KUHN 43 FORMERLY SENIOR VICE PRESIDENT MARKETING AND SALES WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT GENERAL SERVICE TIMOTHY P DWYER 44 FORMERLY GENERAL MANAGER OF THE PHILADELPHIA DIVISION WAS NAMED VICE PRESIDENT UNIT TRAINS RONALD J CONWAY 49 WHO WAS ASSISTANT VICE PRESIDENT IN CHARGE OF PETROCHEMICALS AND MINERALS WAS NAMED VICE PRESIDENT INTERMODAL AND GEORGE P TURNER 51 FORMERLY ASSISTANT VICE PRESIDENT AUTOMOTIVE WAS NAMED VICE PRESIDENT AUTOMOTIVE 9311220117 931122 BUSINESS BRIEF GM TOYOTA AGREE ON CHEVROLET EXPORTS TO BE SOLD IN JAPAN SAN FRANCISCO GENERAL MOTORS CORP WILL EXPORT RIGHTHANDDRIVE CHEVROLET CAVALIERS FOR SALE IN JAPAN AS TOYOTAS THE TWO COMPANIES ANNOUNCED UNDER AN AGREEMENT SIGNED FRIDAY BY JOHN F SMITH JR PRESIDENT OF GM AND HIS COUNTERPART AT TOYOTA MOTOR CORP TATSURO TOYODA TOYOTA WILL IMPORT ABOUT 20000 CAVALIERS A YEAR BEGINNING IN EARLY 1996 BY CONTRAST TOYOTA EXPORTS ABOUT 30000 CARS EACH MONTH TO THE US GM IS REDESIGNING THE CLUNKY CAVALIER FOR THE 1995 MODEL YEAR AND BELIEVES THE NEW PRODUCT WILL MEET GLOBAL QUALITY AND DESIGN STANDARDS MR SMITH SAID THE AGREEMENT SHOWS THAT THE US HAS CLOSED THE COMPETITIVE GAP WITH JAPAN AND CAN BUILD VEHICLES THAT CAN COMPETE ANY PLACE IN THE WORLD MR TOYODA CALLED THE AGREEMENT A NEW EXAMPLE OF INDUSTRIAL COOPERATION BETWEEN JAPAN AND THE US THE TWO COMPANIES REACHED A TENTATIVE AGREEMENT IN APRIL TO EXPORT THE SEDANS SHORTLY AFTER MR SMITH STOPPED A JOINT BIG THREE MOVE TO FILE DUMPING CHARGES AGAINST JAPANESE AUTO MAKERS INSTEAD MR SMITH APPEARS TO BE PUSHING COLLABORATION AND FREE TRADE AND IS TRYING TO GIVE GM AN INCREASINGLY GLOBAL OUTLOOK GM EUROPE FOR EXAMPLE IS AGGRESSIVELY EXPORTING ITS HIGHLY SUCCESSFUL CORSA SUBCOMPACT AND LAYING PLANS TO BUILD IT IN NEW MARKETS THE MODEL IS ALREADY BEING EXPORTED FROM EUROPE TO CHILE AND SOON WILL BE BUILT AND OFFERED IN AUSTRALIA BRAZIL AND MEXICO GM AND TOYOTA ALREADY COLLABORATE ON A JOINT ASSEMBLY VENTURE IN CALIFORNIA AND IN AUSTRALIA GM BUILDS THE COMMODER SEDAN WHICH IS ALSO SOLD AS THE TOYOTA LEXCEN 9311220116 931122 TECHNOLOGY ORGANIZATION OFFERS FULL INTERNET ACCESS FOR THE PRICE OF A CALL NEW YORK THE INTERNATIONAL INTERNET ASSOCIATION A WASHINGTON DC NONPROFIT ORGANIZATION THAT PROMOTES USE OF THE INTERNET IS PROVIDING FREE ACCESS TO THE GLOBESPANNING DATA HIGHWAY THE IIA IS OFFERING MORE THAN 20000 INTERNET ACCOUNTS WHICH INCLUDE ELECTRONICMAIL SERVICES AND ALL OTHER FUNCTIONS OF THE NETWORK OUR ULTIMATE GOAL IS THAT ANYONE IN THE US CAN GET GOOD CHEAP ACCESS SAID MAX ROBBINS IIA'S EXECUTIVE DIRECTOR TO TAKE ADVANTAGE OF ONE OF THE IIA ACCOUNTS A COMPUTER WITH A MODEM IS NECESSARY AND USERS WILL HAVE TO PAY TELEPHONE CHARGES INCURRED BY DIALING THE IIA'S NEW JERSEY FACILITY TYPICALLY COMMERCIAL SERVICES THAT PROVIDE INTERNET LINKS CHARGE A CONNECTION FEE A FLAT MONTHLY RATE AND PERHOUR FEE AFTER A CERTAIN MINIMUM NUMBER OF HOURS ARE SPENT USING THE SERVICE WE WANT TO FORCE THE COMMERCIAL ELEMENT TO GIVE HIGHQUALITY LOWCOST SERVICE MR ROBBINS SAID WHILE SOME UNIVERSITIES OFFER FREE ACCESS TO THE INTERNET OFTEN IT IS LIMITED TO ELECTRONIC MAIL AND TO USE OF THE NETWORK'S BULLETINBOARD SERVICES SIMILAR LIMITATIONS EXIST FOR FREENETS COMMUNITYBASED NETWORKS THAT OFFER FREE INTERNET ACCESS IN CERTAIN AREAS OF THE COUNTRY THE IIA ACCOUNTS WILL OFFER ALL SERVICES AVAILABLE THROUGH THE NEWTORK INCLUDING ACCESS TO COMPUTER SOFTWARE USE OF OTHER COMPUTERS CONNECTED TO THE NETWORK AND USE OF THE INTERNET'S CHAT FUNCTIONS THROUGH WHICH TYPEWRITTEN CONVERSATIONS CAN BE HELD WITH OTHER USERS THE IIA SAID THAT REQUESTS FOR FREE ACCOUNTS CAN BE MADE BY CALLING 202 3875445 9311220115 931122 LITTON FACES PROBE OF REPAIRS TO GYROSCOPES CIVIL WHISTLEBLOWER SUIT ALLEGES OVERCHARGING BY MILLIONS OF DOLLARS BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF LITTON INDUSTRIES INC ALREADY UNDER TWO SEPARATE GRANDJURY INVESTIGATIONS FOR ALLEGEDLY DEFRAUDING THE PENTAGON NOW FACES A THIRD CRIMINAL PROBE INVOLVING ALLEGED OVERCHARGES ON GYROSCOPE REPAIRS FOR MILITARY AND COMMERCIAL CUSTOMERS THE GYROSCOPE INQUIRY ACCORDING TO LAWENFORCEMENT OFFICIALS AND OTHERS FOCUSES ON ALLEGATIONS THAT LITTON INSTALLED USED OR SUBSTANDARD PARTS BUT THEN TOLD THE NAVY AIR FORCE COAST GUARD AND CERTAIN COMMERCIAL CUSTOMERS THAT IT HAD USED NEW OR ENTIRELY REFABRICATED PARTS A CIVIL WHISTLEBLOWER SUIT FILED IN FEDERAL COURT IN LOS ANGELES ALLEGES THAT THE MISREPRESENTATIONS INVOLVED WORK ON HUNDREDS OF AIRCRAFT GYROSCOPES MANUFACTURED BY THE COMPANY'S GUIDANCE & CONTROL UNIT GOING BACK TO THE MID1980S THE SCRUTINY OF THE COMPANY'S OPERATIONS IN WOODLAND HILLS CALIF HASN'T BEEN DISCLOSED PREVIOUSLY AND NEITHER SPOKESMEN FOR THE COMPANY NOR THE JUSTICE DEPARTMENT WOULD DISCUSS THE INVESTIGATION MEANWHILE LAWENFORCEMENT AND INDUSTRY OFFICIALS SAID THE COMPANY HAS AGREED TO PLEAD GUILTY TO UNRELATED FELONY CHARGES AND PAY ABOUT 4 MILLION TO SETTLE A LONGPENDING CRIMINAL PROBE OF LITTON'S DATA SYSTEMS UNIT'S EFFORTS TO SNARE NAVY CONTRACTS DURING THE LATE 1980S LITTON SPOKESMAN ROBERT KNAPP CONFIRMED THAT THE DISCUSSIONS ARE CONTINUING BUT SAID THAT NO FINAL AGREEMENT HAS BEEN SIGNED MR KNAPP DIDN'T CONFIRM OR DENY THAT THE COMPANY HAD BEEN ASKED TO TURN OVER INFORMATION TO THE GOVERNMENT INVOLVING GYROSCOPE REPAIRS IT'S WRONG FOR ANYBODY TO COMMENT ON A WHISTLEBLOWER SUIT WHILE IT REMAINS SEALED MR KNAPP SAID WE DENY ANY SUCH ALLEGATIONS WE BELIEVE WE ARE IN TOTAL COMPLIANCE WITH CONTRACT REQUIREMENTS BRAD BRIAN A LOS ANGELES ATTORNEY REPRESENTING THE COMPANY DECLINED TO DISCUSS THE MATTER BUT ACCORDING TO PEOPLE FAMILIAR WITH THE GYROSCOPE CASE THE PROBE HAS INTENSIFIED IN THE PAST FEW WEEKS WITH THE FEDERAL BUREAU OF INVESTIGATION AND PENTAGON CRIMINAL INVESTIGATORS GATHERING DOCUMENTS AND MATCHING SERIAL NUMBERS OF PARTS TO DETERMINE WHETHER LITTON SUBMITTED MILLIONS OF DOLLARS IN INFLATED BILLS COVERING MORE THAN 1000 REPAIRS AN ESTIMATED 20 OF THE REPAIRS UNDER SCRUTINY WERE PAID FOR BY AIRLINES OR OTHER COMMERCIAL CUSTOMERS ACCORDING TO THESE PEOPLE THE INVESTIGATION COMES AT AN ESPECIALLY DELICATE TIME FOR LITTON THE COMPANY NOT ONLY IS TRYING TO RESOLVE A NUMBER OF OUTSTANDING JUSTICE DEPARTMENT INQUIRIES BUT NOW MUST DECIDE HOW MUCH OF ITS LEGAL PROBLEMS TO DISCLOSE TO SHAREHOLDERS AND THE SECURITIES AND EXCHANGE COMMISSION AS PART OF ITS ANNOUNCED PLAN TO SPIN OFF ITS COMMERCIAL OPERATIONS TO FORM A NEW COMPANY A SHAREHOLDER MEETING IS SET FOR DEC 8 WHICH MAY PROMPT QUESTIONS ABOUT PENDING LEGAL ISSUES THE GYROSCOPEREPAIR ALLEGATIONS ARE CONTAINED IN A CIVIL LAWSUIT FILED UNDER SEAL IN FEDERAL COURT IN LOS ANGELES THE SUIT ALLEGES THAT THE GOVERNMENT WAS OVERCHARGED BY MILLIONS OF DOLLARS AND IF FOUND GUILTY LITTON COULD BE ORDERED TO PAY MORE THAN 10 MILLION INCLUDING TREBLE DAMAGES UNDER THE WHISTLEBLOWER PROVISIONS OF THE FEDERAL FALSE CLAIMS ACT ACCORDING TO ONE PERSON WHO HAS READ IT IN ADDITION TO PURSUING A CRIMINAL INQUIRY THE JUSTICE DEPARTMENT IS CONSIDERING WHETHER TO JOIN IN THE CIVIL ACTION A DECISION ON THAT ISSUE ISN'T EXPECTED UNTIL NEXT YEAR THE ALLEGEDLY SUBSTANDARD GYROSCOPES WERE USED IN AIR FORCE C5 AND C130 CARGO PLANES AMONG OTHER AIRCRAFT ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATION THE DEVICES AREN'T SAID TO POSE SAFETY PROBLEMS INVESTIGATORS ARE TRYING TO DETERMINE AMONG OTHER THINGS WHETHER LITTON EXECUTIVES WERE AWARE OF ANY OF THE ALLEGED ACTIVITIES AND WHETHER REPORTS OF EXCESSIVE MAINTENANCE PROBLEMS BY CERTAIN CUSTOMERS SHOULD HAVE ALERTED LITTON'S MANAGEMENT IN THE LONGPENDING LITTON DATA SYSTEMS CASE AS REPORTED EARLIER FEDERAL PROSECUTORS HAVE TOLD LITTON'S LAWYERS THAT THE GOVERNMENT INTENDS TO SEEK AN INDICTMENT AGAINST THE FIRM ON FRAUDRELATED CHARGES UNLESS A NEGOTIATED SETTLEMENT AND PLEA ARE HAMMERED OUT A CRIMINAL GUILTY PLEA TECHNICALLY COULD SUBJECT ONE OR MORE OF LITTON'S UNITS TO ADMINISTRATIVE SANCTIONS INCLUDING SUSPENSION FROM RECEIVING NEW GOVERNMENT BUSINESS THE COMPANY HAS SAID SUCH PUNISHMENT IS NOT CONSIDERED LIKELY NAVY OFFICIALS CURRENTLY ARE REVIEWING LITTON'S OVERALL ETHICSCOMPLIANCE EFFORTS THOUGH THE COMPANY'S MANAGEMENT AND LAWYERS SEEM CONFIDENT THAT THE FIRM WILL REMAIN ELIGIBLE FOR CONTRACTS IN A THIRD CASE LITTON HAS BEEN UNDER CRIMINAL INVESTIGATION FOR MANY MONTHS FOR PAYING ALLEGEDLY ILLEGAL COMMISSIONS TO A MARKETING CONSULTANT IN TAIWAN INVESTIGATORS BELIEVE THAT RICHARD HEI WHO WORKED FOR FOUR DIFFERENT LITTON DIVISIONS THROUGH THE SUMMER OF 1992 AND SAYS HE STILL RETAINS A CONSULTING CONTRACT WITH THE COMPANY HELPED LITTON SNARE TAIWANESE CONTRACTS WORTH TENS OF MILLIONS OF DOLLARS LITTON WON'T COMMENT BUT INVESTIGATORS CONTEND THAT THE COMPANY IMPROPERLY HID FROM THE US GOVERNMENT THE PURPOSE OF THE COMMISSIONS PAID TO MR HEI 9311220114 931122 MARKETING & MEDIA LEGO TO BUILD THEME PARK SPECIAL TO THE WALL STREET JOURNAL ENFIELD CONN LEGO GROUP THE DANISH TOY MAKER THAT SPECIALIZES IN PLASTICCONSTRUCTION SETS FOR CHILDREN SAID IT WILL BUILD A 100MILLION THEME PARK IN CARLSBAD CALIF ABOUT 30 MILES NORTH OF SAN DIEGO LEGO SAID THAT ITS SEARCH FOR A SITE HAD COME DOWN TO EITHER CARLSBAD OR PRINCE WILLIAM COUNTY VA BUT THAT ITS DECISION HAD NOTHING TO DO WITH THE RECENT ANNOUNCEMENT BY WALT DISNEY CO THAT IT WILL CONSTRUCT A THEME PARK IN PRINCE WILLIAM COUNTY THE DISNEY PROJECT COULD COST BETWEEN 500 MILLION AND 800 MILLION ACCORDING TO INDIVIDUALS CLOSE TO DISNEY LEGO SAID ITS US THEME PARK WILL MIRROR ITS LEGOLAND PARK IN BILLUND DENMARK WHICH OPENED IN 1968 A SPOKESMAN FOR LEGO SYSTEMS INC THE COMPANY'S CONNECTICUTBASED US ARM SAID THE DANISH PARK INCLUDES LOTS OF LARGE MODELS MADE FROM LEGO PARTS THE AMERICAN PARK WON'T INCLUDE THE THRILL RIDES COMMON TO MOST AMUSEMENT PARKS LEGO'S PARK IS EXPECTED TO OPEN IN SPRING 1999 THE COMPANY ESTIMATED THAT THE REGIONAL ECONOMY WILL RECEIVE MORE THAN 76 MILLION ANNUALLY IN SALES FROM THE PARK 9311220113 931122 POLITICS & POLICY US IS NOW INVESTIGATING PACKWOOD OVER DEALINGS WITH MITSUBISHI LOBBYIST BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN BOB PACKWOOD ALREADY BATTLING SEXUALHARASSMENT CHARGES BEFORE THE SENATE ETHICS COMMITTEE IS NOW UNDER INVESTIGATION BY THE JUSTICE DEPARTMENT FOR HIS DEALINGS WITH A LOBBYIST FOR MITSUBISHI ELECTRIC CORP SEN PACKWOOD CONSIDERED RESIGNING LAST WEEK HIS ATTORNEY JAMES FITZPATRICK SAID FRIDAY AN ACTION THAT WOULD HAVE PREVENTED THE ETHICS COMMITTEE FROM CONTINUING ITS INQUIRY BUT AS HE DELIBERATED FRIDAY AFTERNOON HE WAS SERVED WITH A JUSTICE DEPARTMENT SUBPOENA SEEKING HIS PERSONAL DIARIES FOR INFORMATION ABOUT THE MITSUBISHI DEALINGS I THINK HE WAS CLOSE TO RESIGNATION BUT ABOUT THAT TIME THE JUSTICE DEPARTMENT CAME FORTH WITH A SUBPOENA AND HE DECIDED THEN NOT TO RESIGN SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS SAID YESTERDAY ON NBC NEWS'S MEET THE PRESS EARLIER THIS MONTH THE ETHICS COMMITTEE SUBPOENAED SEN PACKWOOD'S DIARIES SAYING THE COMMITTEE WAS PURSUING INFORMATION INVOLVING POSSIBLE CRIMINAL ACTIONS BY SEN PACKWOOD UNRELATED TO THE SEXUALHARASSMENT CHARGES THE OREGON REPUBLICAN FOUGHT THE SUBPOENA BUT RECEIVED A STUNNING REBUKE FROM HIS COLLEAGUES WHEN THEY VOTED 946 TO COMPEL HIM TO COMPLY WITH THE SUBPOENA HIS RESIGNATION FROM THE SENATE WOULD HAVE LEFT THE ETHICS COMMITTEE WITHOUT JURISDICTION TO PURSUE THE RELEASE OF THE DIARIES BUT NOW THE JUSTICE DEPARTMENT IS INVESTIGATING STATEMENTS THAT SEN PACKWOOD MADE AT A 1988 HEARING ON A PATENT DISPUTE BETWEEN MITSUBISHI AND FUSION SYSTEMS CORP OF ROCKVILLE MD IN WHICH SEN PACKWOOD DEFENDED MITSUBISHI GOVERNMENT OFFICIALS SAID THOSE COMMENTS ARE MEANINGFUL BECAUSE MITSUBISHI'S LOBBYIST STEVEN SAUNDERS OFFERED A JOB TO SEN PACKWOOD'S WIFE GEORGIE THE OFFICIALS SAID SHE DIDN'T HOWEVER TAKE A JOB WITH THE COMPANY A REFERENCE TO THE OFFER WAS CONTAINED IN SEN PACKWOOD'S DIARIES IRONICALLY AS THE DISPUTE BREWED MITSUBISHI PUBLICLY ACCUSED FUSION OF COZYING UP TO THE GOVERNMENT TO MAKE ITS CASE SEN PACKWOOD FIRST MADE HIS PERSONAL DIARIES AVAILABLE TO THE COMMITTEE TO BOLSTER HIS DEFENSE OF THE SEXUAL HARASSMENT CHARGES AGAINST HIM WHEN AN ETHICS COMMITTEE STAFF MEMBER SAW THE REFERENCE TO THE MITSUBISHI JOB OFFER SEN PACKWOOD'S ATTORNEY BLOCKED FURTHER ACCESS TO THE DIARIES PROMPTING THE COMMITTEE SUBPOENA THE ALLEGATIONS WERE FIRST REPORTED BY THE OREGONIAN NEWSPAPER SEN PACKWOOD HAS BEEN DEFENDED BY A SMALL GROUP OF REPUBLICANS WHO CAME TO HIS DEFENSE AGAIN YESTERDAY SEN ALAN SIMPSON OF WYOMING APPEARING ON CBS NEWS'S FACE THE NATION ACCUSED THE STAFF OF THE ETHICS COMMITTEE OF ACTING IMPROPERLY WHEN THE COMMITTEE STAFF HEARD THAT SEN PACKWOOD WAS POISED TO RESIGN HE SAID THEY THEN SOMEHOW QUICKLY FORWARDED THE INFORMATION TO THE JUSTICE DEPARTMENT LIKE A COUPLE OF TWIN LIGHTNING BOLTS PROMPTING THE SUBPOENA SEN SIMPSON SAID ETHICS COMMITTEE STAFF MEMBERS WEREN'T AVAILABLE FOR COMMENT SEN PACKWOOD HASN'T COMMENTED ON THE CASE BEYOND REMARKS HE MADE ON THE SENATE FLOOR EARLIER IN THE MONTH AND HIS DENIALS TO REPORTERS FRIDAY THAT HE WAS CONSIDERING RESIGNING THE SENATE LEGAL COUNSEL WAS PREPARED TO FILE PAPERS IN FEDERAL COURT FRIDAY TO COMPEL SEN PACKWOOD TO COMPLY WITH THE SUBPOENA BUT WITH SEN PACKWOOD'S RESIGNATION UNDER CONSIDERATION THAT DAY THE PAPERS WEREN'T FILED 9311220112 931122 PHILADELPHIA AREA FIRMS REPORT GAINS IN MANUFACTURING PHILADELPHIA PHILADELPHIA AREA COMPANIES REPORT CONTINUED INCREASES IN MANUFACTURING ACTIVITY THE FEDERAL RESERVE BANK OF PHILADELPHIA REPORTED IN ITS MONTHLY SURVEY THE REPORT FOUND NEARLY ONETHIRD OF FIRMS REPORTED INCREASES IN NEW ORDERS IN NOVEMBER AND THREEFIFTHS OF THE FIRMS EXPECT INCREASES OVER THE NEXT SIX MONTHS BUT DESPITE THE RISE IN MANUFACTURING ACTIVITY AND IMPROVED OPTIMISM THE SURVEY'S MEASURES OF FUTURE PRICES PAID AND RECEIVED ARE NEAR THEIR LOWEST LEVELS IN THREE YEARS SUGGESTING THAT PRICE EXPECTATIONS HAVE MODERATED FOLLOWING THREE CONSECUTIVE MONTHS IN THE NEGATIVE RANGE THE SURVEY'S MEASURE OF ECONOMIC PERFORMANCE TURNED POSITIVE IN SEPTEMBER AND HAS INCREASED STEADILY FOR THE PAST TWO MONTHS THE PHILADELPHIA FED SAID FOR EXAMPLE THE PERCENTAGE OF RESPONDENTS INDICATING AN INCREASE IN MANUFACTURING ACTIVITY MINUS THE PERCENTAGE INDICATING A DECREASE ROSE TO 224 THIS MONTH FROM 151 IN OCTOBER ABOUT 31 OF THOSE RESPONDING TO THE SURVEY REPORT INCREASES IN ACTIVITY THE PHILADELPHIA FED SAID AND 8 REPORT DECLINES MANUFACTURING EMPLOYMENT LEVELS AMONG RESPONDENTS HELD STEADY THIS MONTH ABOUT 79 OF THE SURVEYED MANUFACTURERS REPORTED NO CHANGE IN EMPLOYMENT THIS MONTH COMPARED WITH 9 REPORTING INCREASES AND 12 REPORTING DECLINES OF THE FIRMS POLLED THIS MONTH 24 EXPECT TO ADD WORKERS IN THE NEXT SIX MONTHS BUT 17 EXPECT TO MAKE CUTS THE SURVEYED FIRMS WERE MORE OPTIMISTIC ABOUT THEIR PLANS FOR CAPITAL EXPENDITURES ABOUT 43 OF THE FIRMS REPORT PLANS TO INCREASE CAPITAL SPENDING IN THE NEXT SIX MONTHS WITH ONLY 3 EXPECTING A DECLINE 9311220111 931122 BEVERAGES NEW QUICK HIT' PRODUCT PLAN IS RISKY FOR COKE BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL AS MORE AND MORE CONSUMERPRODUCT COMPANIES JUMPED ON THE NEWPRODUCT MERRYGOROUND DURING THE PAST DECADE COCACOLA CO AND PEPSICO INC KEPT THEIR FEET ON THE GROUND EXCEPT FOR OCCASIONAL FORAYS INTO FLAVORED DRINKS AND TEA THEY GENERALLY STAYED WITH THE TRIED AND TRUE PLAIN COLA OR CLEAR COLA WITH CALORIES AND CAFFEINE OR WITHOUT THEY WERE AMONG THE LAST OF THE BIG BLOCKBUSTER BRAND BUILDERS IN THE PAST COKE WOULD WEIGH THE COSTS AND BENEFITS OF A POTENTIAL NEW PRODUCT AND SCUTTLE THE IDEA IF THE PRODUCT WASN'T SURE TO BE A BLOCKBUSTER HIT BUT LAST WEEK ROBERTO GOIZUETA COKE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANNOUNCED A CHANGE WE'LL COME OUT WITH PRODUCTS QUICKLY AND MAKE A NICE PROFIT HE SAID ADDING THAT ONCE A PRODUCT'S SALES SLIP COKE WILL HAVE NO PRIDE OF OWNERSHIP AND PULL IT QUICKLY MANY IN THE BEVERAGE INDUSTRY INCLUDING SOME SOFTDRINK BOTTLERS SAY IT'S ABOUT TIME THAT COKE GETS WITH THE TIMES BEVERAGE MAKERS MANY OF THEM MUCH SMALLER THAN COKE HAVE BEEN SPEWING OUT NEW DRINK PRODUCTS AT THE RATE OF 1700 A YEAR MANY OF THOSE NEW BRANDS THOUGH TINY HAVE BEEN HIGHLY PROFITABLE AND COKE AND PEPSI BECAUSE OF THEIR METHODICAL APPROACH VIRTUALLY MISSED OUT ON THE POPULARITY OF CLEAR AND NEW AGE DRINKS LIKE CLEARLY CANADIAN AND QUIBELL WE'RE USED TO MEGAMARKETING DOING EVERYTHING IN A BIG WAY WITH OUR COLA SAYS RONALD WILSON PRESIDENT OF PHILADELPHIA COCACOLA BOTTLING CO THE WORLD HAS CHANGED WE WERE WAY BEHIND THE CURVE ON A LOT OF THESE ITEMS INDEED THE SOFTDRINK INDUSTRY HAS LONG BEEN A BUSINESS WORKING FOR LONGEVITY SAYS TOM PIRKO A BEVERAGE CONSULTANT WHO HAS WORKED FOR COKE MICHAEL BELLAS ANOTHER INDUSTRY CONSULTANT GIVES A RATIONALE FOR CHANGING THAT IN THE EARLY 1970S YOU WERE ABLE TO GET A BILLIONDOLLAR BRAND IT'S INCREASINGLY DIFFICULT TO HIT THESE HOME RUNS NOW IT TAKES AT LEAST 20 MILLION TO CREATE A NATIONAL BRAND THAT HAS MINIMAL AWARENESS AND MUCH MORE TO MAKE A BIG SPLASH ACCORDING TO JOHN LISTER A NEW YORK BRANDIDENTITY CONSULTANT TODAY A NEW SOFT DRINK IS CONSIDERED A BIG SUCCESS IF IT HITS 200 MILLION IN SALES ACCORDING TO MR BELLAS A FAR CRY FROM BILLIONDOLLAR BRANDS LIKE DIET COKE AND THE LIFE CYCLE OF MOST NEW PRODUCTS IS MUCH SHORTER THAN IN THE PAST IN BEVERAGES FOR INSTANCE THE BIG OLD BRANDS SUCH AS COKE PEPSI AND BUD WILL STAY ON THE SHELVES FOREVER MR BELLAS SAYS BUT THE NEW ONES ARE LASTING JUST THREE TO FIVE YEARS THE PROBLEM MARKETERS SAY IS THAT CONSUMERS ARE SO FICKLE YOUNG CONSUMERS ESPECIALLY DEMAND VAST CHOICE ON TV THEY WATCH A MULTITUDE OF CHANNELS NOT JUST A FEW BIG NETWORKS AND IN THE BEVERAGE AISLE THEY AREN'T GOING TO BE SATISFIED WITH JUST BIGNAME BRANDS CUSTOMERS WILL MOVE TO UNKNOWN BRANDS WITHOUT WARNING SAYS MR LISTER SO COKE AND PEPSI ARE PLUNGING INTO WHAT THEY CALL THE TOTAL BEVERAGE MARKET PEPSI WHICH SOLD JUST 14 MAIN BRANDS FIVE YEARS AGO NOW OFFERS MORE THAN 60 MORE INCLUDING LIPTON TEAS OCEAN SPRAY JUICES SPORT DRINKS AND FLAVORED WATERS COKE CREATED A NEW DEPARTMENT A YEAR AGO TO DEVELOP SUCH NEW PRODUCTS AS TEAS AND SPORTS DRINKS THE SOFTDRINK GIANTS RUN MANY RISKS THE MAIN ONE HURTING THEIR MAJOR BRANDS BY SAPPING ATTENTION AND DOLLARS FROM THEM BOTTLERS FEAR NEW PRODUCTS COULD SIPHON AD DOLLARS AWAY FROM OLD ONES CONVERSELY COKE AND PEPSI MIGHT NOT BE WILLING TO SHELL OUT THE MONEY TO ESTABLISH A QUICK HIT WHILE THE WHOLE POINT OF THE NEW PRODUCTS IS TO CAPITALIZE ON TRENDCONSCIOUS TASTE BUDS SOME CONSULTANTS WONDER HOW SUCCESSFUL A PRODUCT WILL BE WITHOUT THE COKE NAME MR GOIZUETA SAYS THAT NONE OF THE QUICKHIT PRODUCTS WOULD USE THE TRADEMARK NAME IF THERE IS NO ASSOCIATION WITH THE COMPANY THE NEW PRODUCTS ARE JUST LIKE EVERYBODY ELSE SAYS MR PIRKO THE CONSULTANT CONVINCING BOTTLERS TO CARRY THE NEW PRODUCTS CAN ALSO BE A TOUGH SELL EVEN THOUGH PEPSI OFFERS A RANGE OF JUICES SPORTS DRINKS AND WATERS PEPSICOLA BUFFALO BOTTLING CO FOR EXAMPLE STOCKS OTHER COMPANIES' BRANDS I'M NOT READY TO JUMP SHIP AND ABANDON SOMETHING WE NURTURED AND BELIEVED IN JUST BECAUSE PEPSI COMES OUT WITH IT SAYS SYD PASTOR EXECUTIVE VICE PRESIDENT FOR THE BOTTLING COMPANY AND SELLING SHORTLIVED PRODUCTS WOULD BE A NIGHTMARE FOR BOTTLERS MR PASTOR SAYS BOTTLERS WOULD NEED TO DEVELOP NEW EQUIPMENT AND PACKAGING FOR EACH NEW DRINK SUCH AS LABELS CAPS AND CUSTOMIZED BOTTLES AS WELL AS PLANS FOR WAREHOUSING PROMOTIONS AND MANUFACTURING HE SAYS PEPSI HASN'T INDICATED THAT ITS STRATEGY ENTAILS KILLING A NEW PRODUCT WHEN SALES BEGIN TO SLIP DISCUSSING COKE'S NEW STRATEGY MR GOIZUETA POINTS TO TAB CLEAR HE IS PROUD OF THE SPEED THAT IT CAME TO MARKET HE SAYS BUT HE ALSO DECLARES IT A PRODUCT ABOUT TO DIE SUPERMARKET SALES FOR THIS YEAR UNTIL OCTOBER SHOW TAB CLEAR WITH ABOUT 4 MILLION COMPARED WITH CRYSTAL PEPSI AT ABOUT 102 MILLION ACCORDING TO A SURVEY BY INFORMATION RESOURCES INC MR GOIZUETA SAYS FURTHER THAT THE COMPANY'S NEW AGE KNOCKOFF NORDIC MIST WAS BEHIND THE CURVE SO INSTEAD OF RELYING ON CONSUMER RESEARCH TO STAY ON TOP OF THE LATEST TRENDS COKE ASSIGNED AN EXECUTIVE TO PRESEARCH THOSE TRENDS SPOTTING THEM BEFORE THEY HAPPEN 9311220110 931122 UAL REPORT SEES PROFIT GAIN IN REORGANIZING BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE PLAN THAT UAL CORP IS CONSIDERING TO SHED ITS SHORTFLIGHT OPERATIONS WOULD SUBSTANTIALLY INCREASE THE COMPANY'S PROFIT AND BOOST ITS MARKET VALUE ACCORDING TO A REPORT PREPARED FOR THE AIRLINE'S BOARD THE STUDY CASTS NEW LIGHT ON WHY THE PARENT OF UNITED AIRLINES RECENTLY REJECTED AN OFFER FROM ITS UNIONS TO ACQUIRE 60 OF UAL AND IT SHOWS THAT THE COMPANY EXPECTS COSTLY UNION RESISTANCE TO THE PROPOSAL UNDER WHICH UNITED WOULD CREATE SEPARATE PUBLICLYOWNED CARRIERS WITH LOWCOST STRUCTURES TO COMPETE WITH CHEAPFARE RIVALS LIKE SOUTHWEST AIRLINES THE SHIFT COULD COST THOUSANDS OF UNITED EMPLOYEES THEIR JOBS BUT THE SHORTHAUL PLAN WOULD INCREASE THE PERSHARE VALUE OF THE RESTRUCTURED UAL TO BETWEEN 225 AND 275 ACCORDING TO THE REPORT PREPARED IN LATE AUGUST BY CS FIRST BOSTON INC THE AIRLINE'S INVESTMENT ADVISER IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE UAL SHARES CLOSED UNCHANGED AT 140 THE REPORT PROJECTS THAT THE COMPANY'S OPERATING PROFIT WOULD INCREASE TO 261 MILLION IN 1994 FROM 114 MILLION THIS YEAR AND JUMP TO 149 BILLION IN 1995 HOWEVER THE REPORT ALSO SAID ANTICIPATED UNION RESISTANCE TO THE PLAN FROM FLIGHT DELAYS TO INCREASED SICK LEAVE COULD REDUCE THE VALUE OF THE RESTRUCTURED UAL TO BETWEEN 183 AND 253 A SHARE A UAL SPOKESMAN WOULDN'T COMMENT SAYING THE REPORT WAS PROPRIETARY HE SAID THAT THE DOOR REMAINS OPEN TO A COOPERATIVE EFFORT WITH OUR UNIONS BUT ADDED THAT UNITED MUST PURSUE A COURSE TO REDUCE COSTS IN THE DOMESTIC MARKETPLACE UNITED HAS BEEN EXPLORING HOW TO BECOME MORE COMPETITIVE WITH CHEAPFARE RIVALS THAT HAVE TARGETED SHORTER ROUTES EARLIER THIS MONTH THE BOARD REJECTED AS INADEQUATE A PROPOSAL FROM UNITED'S UNIONS TO ACQUIRE A MAJORITY STAKE FOR CONCESSIONS AND OTHER CONSIDERATIONS THAT THE UNIONS VALUED AT 55 BILLION OR 16567 A SHARE THE UNIONS' OFFER INCLUDED AN AGREEMENT TO SET UP A UNIONIZED BUT LOWERCOST AIRLINEWITHINANAIRLINE 9311220109 931122 INTERNATIONAL FRANCE URGES END TO DISPUTE OVER USE OF CHAMPAGNE PARIS REUTER THE FRENCH GOVERNMENT IS URGING TWO OF THE COUNTRY'S PROUDEST INDUSTRIES TO PUT A CORK IN THEIR DISPUTE OVER THE USE OF THE NAME CHAMPAGNE FOR A PERFUME A SPOKESMAN FOR THE INDUSTRY MINISTRY SAID THE GOVERNMENT WANTS YVES SAINT LAURENT AND THE COUNTRY'S CHAMPAGNE VINTNERS TO REACH AN OUTOFCOURT AGREEMENT OVER THE SCENT UNVEILED BY THE HAUTE COUTURE FASHION HOUSE LAST JUNE THE CHAMPAGNE INDUSTRY INSISTING THAT UNDER FRENCH LAW ONLY DESIGNATED SPARKLING WINES FROM THE NORTHEASTERN CHAMPAGNE REGION CAN BEAR THE NAME OF THE WORLD FAMOUS BUBBLY LAST MONTH WON A COURT CASE BANNING YVES SAINT LAURENT FROM USING THE NAME YVES SAINT LAURENT A UNIT OF STATEOWNED ELF AQUITAINE'S ELF SANOFI SUBSIDIARY HAS APPEALED THAT RULING THE INDUSTRY MINISTRY CONSIDERS THIS TO BE A PRIVATE DISAGREEMENT AND THE STATE IS URGING AN AMICABLE AGREEMENT WHICH MEETS THE INTERESTS OF ALL PARTIES THE SPOKESMAN SAID THE NATIONAL INSTITUTE OF LABELS OF ORIGIN WHICH BROUGHT THE ACTION AGAINST YSL WITH THE CHAMPAGNE BUREAU SAID IT HADN'T BEEN APPROACHED ABOUT AN OUTOFCOURT SETTLEMENT BUT WAS READY TO LISTEN ELF SANOFI HAS SAID THAT THE COURT RULING AGAINST CHAMPAGNE WHOSE BOTTLE IS SHAPED LIKE A CHAMPAGNE CORK WOULD COST IT SOME TENS OF MILLIONS OF FRANCS THIS YEAR SOURCES SAID THAT AN AMICABLE AGREEMENT COULD INVOLVE AUTHORIZATION FOR YVES SAINT LAURENT TO CONTINUE MARKETING THE SCENT UNTIL THE END OF THIS YEAR WHICH WOULD ALLOW IT TO RECOUP THE 17 MILLION IT SPENT ON THE LAUNCH 9311220108 931122 NISSAN MOTOR UNIT OFFERS TO BUY REST OF SPANISH SUBSIDIARY SPECIAL TO THE WALL STREET JOURNAL MADRID NISSAN EUROPE NV A UNIT OF JAPAN'S NISSAN MOTOR CO SAID IT MADE A PUBLIC OFFER FOR THE 30 IT DOESN'T ALREADY OWN OF ITS MONEYLOSING SPANISH SUBSIDIARY NISSAN MOTOR IBERICA SA THE OFFER TO BUY OUT MINORITY SHAREHOLDERS FOLLOWS NISSAN'S DECISION TO WRITE OFF NISSAN IBERICA'S EQUITY CAPITAL OF 60 BILLION PESETAS 4345 MILLION BY TWOTHIRDS IN AN EFFORT TO BALANCE GROWING LOSSES AHEAD OF THE CAPITAL REDUCTION PROCESS THAT NISSAN MOTOR IBERICA MUST CARRY OUT IT IS THE NISSAN GROUP'S INTENTION TO OFFER MINORITY SHAREHOLDERS THE POSSIBILITY OF LIQUIDATING THEIR INVESTMENT AT TERMS CONSIDERED FAVORABLE IN VIEW OF THE CURRENT SITUATION AND THE MEDIUMTERM FUTURE OF NISSAN IBERICA THE COMPANY SAID IT DIDN'T PROVIDE FURTHER DETAILS OF THE OFFER NISSAN IBERICA'S LOSSES DEEPENED TO 2801 BILLION PESETAS IN THE FIRST NINE MONTHS OF THE YEAR FROM 544 BILLION PESETAS A YEAR AGO AND LOSSES ARE EXPECTED TO REACH 40 BILLION PESETAS BY YEAR'S END NISSAN IBERICA SHARES WERE SUSPENDED FROM TRADING THURSDAY AFTER THE STOCK WAS BUFFETED BY RUMORS CONCERNING THE WRITEOFF AND TAKEOVER BID NISSAN IBERICA SHARES HAD LOST MORE THAN 23 OF THEIR VALUE SINCE THE START OF LAST WEEK OR 45 PESETAS TO CLOSE AT 147 PESETAS A SHARE LAST WEDNESDAY THE COMPANY ALSO IS NEGOTIATING WITH SPANISH UNIONS IN AN EFFORT TO INCREASE ITS PLAN TO CUT 600 JOBS FROM THE 7000STRONG WORK FORCE BY ANOTHER 500 POSTS 9311220107 931122 WHO'S NEWS WMX'S ROONEY DOUBLES MANAGERS REPORTING TO HIM BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WMX TECHNOLOGIES INC'S NO 2 EXECUTIVE PHILLIP B ROONEY MOVED TO CUT COSTS AND REPAIR INVESTOR CONFIDENCE IN THE COMPANY'S NORTH AMERICAN TRASHHANDLING BUSINESS BY MORE THAN DOUBLING THE NUMBER OF FIELD MANAGERS REPORTING TO HIM MR ROONEY PRESIDENT AND CHIEF OPERATING OFFICER OF WMX SAID IN AN INTERNAL MEMO DATED NOV 4 THAT THE TRASH UNIT KNOWN BY THE PARENT COMPANY'S FORMER NAME OF WASTE MANAGEMENT INC WOULD BE SPLIT FROM FOUR REGIONAL COMPANIES INTO NINE THE MEMO ALSO SAID THAT ALL REGIONS WOULD REPORT DIRECTLY TO HIM A COPY OF THE MEMO WAS OBTAINED BY THE WALL STREET JOURNAL WMX TECHNOLOGIES BASED IN OAK BROOK ILL SAID LAST MONTH THAT MR ROONEY WHO IS WELLREGARDED ON WALL STREET WOULD BECOME MORE CLOSELY INVOLVED IN THE TRASH OPERATIONS THAT ANNOUNCEMENT CAME AS A BIG THIRDQUARTER LOSS A CREDITRATINGS DOWNGRADE AND COMPETITIVE PRESSURES PUSHED DOWN THE COMPANY'S STOCK A COMPANY SPOKESMAN WOULDN'T COMMENT ON THE MEMO AS WE PREPARE FOR 1994 IT HAS BECOME CLEAR THAT THE CHALLENGES FACING OUR NEW WASTE MANAGEMENT INC ORGANIZATION WILL BE SIGNIFICANT MR ROONEY SAID IN THE MEMO HE ADDED THAT THE INCREASED NUMBER OF REGIONAL COMPANIES WOULD BRING MORE DECICIONMAKING EXECUTIVES CLOSER TO THE COMPANY'S CUSTOMER BASE WMX AND ITS RIVAL NO 2 HAULER BROWNINGFERRIS INDUSTRIES INC HAVE BOTH BEEN STRUGGLING TO REDUCE COSTLY CUSTOMER TURNOVER WHICH RUNS AS HIGH AS 12 A YEAR FOR EACH MR ROONEY NOTED THIS STRUCTURE SHOULD PROVIDE THE IMPETUS NECESSARY TO MAINTAIN SHAREHOLDER CONFIDENCE INVESTORS AND ANALYSTS WERE HEARTENED LAST MONTH WHEN THE COMPANY SAID MR ROONEY WHO WAS DEEPLY INVOLVED IN THE WHEELABRATOR TECHNOLOGIES INC AND RUST INTERNATIONAL INC UNITS WOULD TURN HIS ATTENTION TO THE TRASH BUSINESS WHICH ACCOUNTS FOR ABOUT HALF OF COMPANY REVENUE AND MORE THAN HALF OF PROFITS AMONG THE NINE REGIONAL PRESIDENTS WILL BE MR ROONEY'S BROTHER JAY IN CHARGE OF THE NEW ENGLAND AREA WITH HEADQUARTERS IN BOSTON JAY ROONEY IS A LONGTIME WASTE MANAGEMENT OFFICIAL A SPOKESMAN SAID FOLLOWING THE CREDITRATINGS DOWNGRADE BY STANDARD & POOR'S CORP LAST MONTH WMX SAID IT WOULD CUT CAPITAL SPENDING IN SOME BUSINESSES AND TRY TO WRING BETTER RETURNS OUT OF EXISTING ASSETS BY DOING SO THE COMPANY ACKNOWLEDGED IT FACES LOWER GROWTH PROSPECTS THE BUSINESS HAS BEEN HURT BY LOWERTHANEXPECTED VOLUMES OF TRASH AND HAZARDOUS WASTE DUE TO THE RECESSION RECYCLING AND INDUSTRIAL WASTE MINIMIZATION EFFORTS AT THE SAME TIME A GLUT OF DISPOSAL CAPACITY IN SOME MARKETS HAS LED TO FIERCE PRICE CUTTING AMONG WASTE CONCERNS THUS ERODING PROFITS 9311220106 931122 CORESTATES TO BUY BANKING CONCERN IN STOCK SWAP BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL PHILADELPHIA PA CORESTATES FINANCIAL CORP SAID IT AGREED TO ACQUIRE INDEPENDENCE BANCORP INC IN EXCHANGE FOR ABOUT 514 MILLION IN COMMON STOCK CORESTATES IS A PHILADELPHIA BANKHOLDING COMPANY WITH 228 BILLION IN ASSETS WITH 280 BRANCHES IN PENNSYLVANIA AND NEW JERSEY INDEPENDENCE BANCORP IS A BANKHOLDING COMPANY BASED IN PERKASIE PA WITH 26 BILLION IN ASSETS AND 54 BRANCHES IN SEVEN COUNTIES IN EASTERN PENNSYLVANIA SHARE PRICES AND TRADING VOLUME OF INDEPENDENCE COMMON SURGED A FEW DAYS BEFORE THE BANKS' ANNOUNCEMENT OF THE ACQUISITION RAISING SPECULATION THAT WORD OF THE DEAL HAD LEAKED OUT INDEPENDENCE SHARES HAD BEEN TRADING FOR AS LOW AS 2675 ON VOLUME OF 6800 SHARES IN EARLY NOVEMBER ON THE NASDAQ STOCK EXCHANGE IN THE FOUR DAYS PRECEDING THE ANNOUNCEMENT A TOTAL OF 18 MILLION SHARES WERE TRADED CLOSING FRIDAY AT 35 UP 150 WHILE CORESTATES SAID IT WAS PUZZLED BY THE EXPLOSION IN TRADING WE HAVE NO EVIDENCE THAT THERE IS ANYTHING TO BE SUSPICIOUS OF A SPOKESMAN SAID UNDER THE TERMS OF THE AGREEMENT EACH OF INDEPENDENCE'S 127 MILLION IN FULLY DILUTED SHARES WILL BE EXCHANGED FOR 145 TO 15 SHARES OF CORESTATES STOCK DEPENDING ON CORESTATES' CLOSING PRICE OVER A PRICING PERIOD CORESTATES SAID THAT BASED ON THE 27 CLOSING PRICE OF ITS STOCK ON THURSDAY THE ACQUISITION IS WORTH 4050 PER INDEPENDENCE SHARE FOR A TOTAL VALUE OF ABOUT 514 MILLION CORESTATES SHARES SLIPPED 375 CENTS TO 26625 IN NASDAQ TRADING FRIDAY CORESTATES SAID IT EXPECTS THE DEAL TO CLOSE IN THE 1994 SECONDQUARTER AND WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS CORESTATES ALSO RECEIVED AN OPTION TO BUY AS MUCH AS 99 OF INDEPENDENCE STOCK A STEP USUALLY DESIGNED TO DISCOURAGE COMPETING OFFERS CORESTATES SAID THE ACQUISITION WOULD INCREASE ITS MARKET SHARE OF DEPOSITS IN BUCKS COUNTY PA TO 26 FROM ABOUT 11 BECAUSE OF THE IMPACT OF CLOSING AND CONSOLIDATION COSTS CORESTATES SAID THE ACQUISITION OF INDEPENDENCE IS NOT EXPECTED TO ADD TO PERSHARE EARNINGS IN THE FIRST YEAR 9311220105 931122 INTERNATIONAL LONRHO'S BOCK SAYS UK CONGLOMERATE TO BE RESTRUCTURED A WALL STREET JOURNAL NEWS ROUNDUP FRANKFURT LONRHO PLC JOINT CHIEF EXECUTIVE DIETER BOCK SAID THE BRITISH CONGLOMERATE WILL BE RESTRUCTURED FROM THE GROUND UP OVER THE NEXT 12 TO 18 MONTHS FURTHER SIGNALING THAT THE COMPANY IS NO LONGER THE PERSONAL FIEF OF ITS FOUNDER ROLAND TINY ROWLAND ABOUT 90 OF THE 800 BUSINESSES GATHERED BY MR ROWLAND WILL BE EITHER SOLD OR CONSOLIDATED INTO THE 80 REMAINING UNITS MR BOCK SAID MR ROWLAND RAN LONRHO FOR MORE THAN 30 YEARS AS ITS BIGGEST SHAREHOLDER BUT IN DECEMBER 1992 HE BROUGHT IN MR BOCK A GERMAN FINANCIER AS JOINT CHIEF EXECUTIVE MR BOCK BOUGHT HALF OF ROWLAND'S STAKE AND HAS OPTIONS ON MOST OF THE REST SINCE THAT TIME THE TWO MEN HAVE BUTTED HEADS OVER THE COMPANY'S DIRECTION AND THESE DAYS THERE IS NO LOVE LOST BETWEEN THEM AS THE TWO HAVE STRUGGLED TO WIELD CONTROL MR BOCK HAS MADE IT CLEAR HE PLANS TO HAVE THE ULTIMATE SAY MICHAEL COULSON OF LONDONBASED BROKERAGE CREDIT LYONNAIS LAING SAID MR BOCK'S DECISION TO TIDY UP LONRHO'S BUSINESS PORTFOLIO IS EXTREMELY GOOD NEWS OVER THE YEARS THAT TINY ROWLAND HAS RUN LONRHO IT HAS AMASSED A LOT OF BAGGAGE IN TERMS OF THE MEDIUMSIZED AND SMALL COMPANIES THAT HAVE COME WITH ACQUISITIONS MR COULSON SAID BUT SUCH AN AGGLOMERATION OF INTERESTS IS DIFFICULT TO CONTROL AND PROBABLY UNECONOMIC TO OPERATE IF AS MR BOCK HINTS LONRHO IS ABLE TO SELL ASSETS AND IN SOME CASES PERHAPS ARRANGE TO LEASE THEM BACK IT CAN LIBERATE A LOT OF CASH MR COULSON SAID THAT IN TURN WOULD HELP TO RELIEVE PRESSURE ON LONRHO'S BALANCE SHEET FROM BORROWINGS MR BOCK WHOSE STRATEGY WAS OUTLINED IN AN INTERVIEW WITH THE GERMAN BUSINESS NEWSPAPER HANDELSBLATT SAID LONRHO WILL FOCUS ON FOUR SECTORS MINING HOTELS AGRICULTURE AND TRADE LONRHO WILL SHED INTERESTS IN OTHER SECTORS SUCH AS AUTOMOBILES TRANSPORTATION NEWSPAPERS TEXTILES MANUFACTURING AND FINANCIAL SERVICES LONRHO HE SAID WILL BE TRANSFORMED INTO A MANAGEMENT AND FINANCIAL HOLDING COMPANY OF THE FOUR REMAINING SECTORS HOTELS AND MINING WILL BE EMPHASIZED I WANT TO BUILD A TRADED COMPANY THAT IS TRANSPARENT FOR ALL THE MANAGEMENT AND INVESTORS HE TOLD HANDELSBLATT THE LEANER CONDITION OF THE COMPANY SHOULD INCREASE ITS RESULTS FREE UP MEANS FOR CONCEPTUALLY SENSIBLE NEW PURCHASES AND GIVE THE SHARES A HIGHER MARKET VALUE IN TRADING FRIDAY ON THE LONDON STOCK EXCHANGE LONRHO GAINED FIVE PENCE TO 1335 PENCE SEVEN CENTS TO 197 9311220104 931122 SCHNEIDER REVENUE DECLINES 11 PARIS FRENCH ELECTRICAL EQUIPMENT AND ENGINEERING GROUP SCHNEIDER SA POSTED NINEMONTH REVENUE OF 4118 BILLION FRANCS 694 BILLION DOWN 11 FROM 4604 BILLION FRANCS A YEAR EARLIER SCHNEIDER SAID THAT ON A COMPARABLE STRUCTURE AND CONSTANT EXCHANGERATE BASIS REVENUE WOULD HAVE DECLINED 63 FRENCH COMPANIES ARE REQUIRED BY LAW TO RELEASE REVENUE FIGURES SCHNEIDER SAID THE SLUMP IN REVENUE WAS PARTICULARLY FELT IN ITS SCHNEIDER ENTERPRISE DIVISION WHICH INCLUDES THE AILING SPIE BATIGNOLLES UNIT IT ADDED THAT THE DIVISION WAS HURT BY CURRENCY DEVALUATIONS IN EUROPE AND THE CONSIDERABLE SLOWDOWN OF CONSTRUCTION AND WATERWORKS PROJECTS 9311220103 931122 ICH TO REDEEM STOCK DEBT LOUISVILLE KY ICH CORP SAID IT WILL REDEEM FOR CASH ITS OUTSTANDING 16 PREFERRED STOCK AND 165 SENIOR SUBORDINATED DEBT THE INSURANCE HOLDING COMPANY SAID IT WILL REDEEM THE OUTSTANDING 50 MILLION OF ITS SERIES 1987C 16 PREFERRED STOCK ON DEC 2 AT 100 OF STATED VALUE PLUS UNPAID ACCRUED DIVIDENDS TO THE DATE OF REDEMPTION THE COMPANY ALSO WILL REDEEM THE REMAINING 458 MILLION PRINCIPAL AMOUNT OF ITS 165 SENIOR SUBORDINATED DEBENTURES DUE 1994 THE DEBENTURES WILL BE REDEEMED JAN 4 AT 100 OF PAR VALUE PLUS UNPAID ACCRUED INTEREST TO THE DATE OF REDEMPTION THE COMPANY SAID THE REDEMPTIONS WILL REDUCE ICH'S ANNUAL DIVIDEND REQUIREMENTS BY 8 MILLION AND ITS INTEREST EXPENSE BY 76 MILLION 9311220102 931122 VICTORIA SAVINGS OFFICER IS ACQUITTED OF CHARGES TIED TO THRIFT'S LOSSES SAN ANTONIO A FEDERAL JURY ACQUITTED GLEN S CORSO THE FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF VICTORIA SAVINGS ASSOCIATION OF FRAUD CHARGES RELATED TO LOSSES OF MORE THAN 200 MILLION AT THE THRIFT DELIBERATIONS WILL RESUME TODAY ON SIX OTHER DEFENDANTS ASSOCIATED WITH THE DEFUNCT SAN ANTONIO INSTITUTION EARLIER RUPERT A HAYS 55 YEARS OLD THE FORMER CHAIRMAN CHIEF EXECUTIVE AND LARGEST SHAREHOLDER AND THREE OTHER THRIFT EXECUTIVES PLEADED GUILTY IN PLEA BARGAINS WITH THE US JUSTICE DEPARTMENT THE 11 VICTORIA SAVINGS OFFICIALS WERE INDICTED IN MARCH ON CHARGES OF CONSPIRACY MISAPPLYING FUNDS RECEIVING MONEY UNLAWFULLY MAKING FALSE STATEMENTS AND DEFRAUDING A SAVINGS AND LOAN INSTITUTION THE TRIAL BEFORE US DISTRICT COURT JUDGE EDWARD PRADO BEGAN SEPT 20 AFTER EIGHT DAYS OF DELIBERATIONS THE JURY ON FRIDAY ACQUITTED MR CORSO AND SAID IT WOULD RESUME DELIBERATIONS ON THE REMAINING DEFENDANTS JUSTICE DEPARTMENT OFFICIALS DECLINED COMMENT BECAUSE THE TRIAL WAS STILL IN PROGRESS ALONG WITH MR HAYS THE OTHERS WHO EARLIER PLEADED GUILTY ARE EDWARD C MONACO 35 FORMER VICE PRESIDENT AND COMMERCIAL LENDING OFFICER JACK T KOLZE OF IRVING TEXAS AN ATTORNEY AND LAWRENCE R CANEDY 37 FORMER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SENTENCING IS SET FOR DEC 3 A COURT CLERK SAID 9311220101 931122 NOVA CORP EXPECTS GAIN OF 907 MILLION ON SALE OF NOVALTA CALGARY ALBERTA NOVA CORP OF ALBERTA SAID IT EXPECTS TO RECORD A GAIN OF 120 MILLION CANADIAN DOLLARS US907 MILLION ON THE SALE OF ITS NOVALTA RESOURCES INC UNIT THE CALGARY PIPELINE AND CHEMICALS COMPANY SAID IT AGREED TO SELL ITS WHOLLY OWNED OIL AND GAS PRODUCING SUBSIDIARY NOVALTA TO SEAGULL ENERGY CORP HOUSTON FOR ABOUT C275 MILLION CASH NOVA'S STOCK PRICE GAINED 125 CENTS TO 7125 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE WHILE SEAGULL ENERGY SLIPPED 1 TO 25 NOVA SAID THE TRANSACTION IS SUBJECT TO APPROVAL BY SEAGULL'S BOARD BUT IS EXPECTED TO CLOSE EARLY IN JANUARY 1994 IT SAID THE PRICE IS SUBJECT TO CUSTOMARY PURCHASEPRICE ADJUSTMENTS IN A RECENT INTERVIEW NOVA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER TED NEWALL SAID NOVALTA IS THE FINAL ASSET THE COMPANY IS SEEKING TO SELL IN A PROGRAM TO TIGHTEN ITS FOCUS ON ITS CORE NATURALGAS SERVICES AND PETROCHEMICALS BUSINESSES OTHER ASSETS THAT NOVA HAS SOLD SINCE MR NEWALL BECAME THE COMPANY'S TOP MANAGER INCLUDE AN ITALIAN VALVEMANUFACTURING COMPANY AND STAKES IN AN ALBERTA CELLULAR TELEPHONE COMPANY AND A BRITISH COLUMBIA TRUCKING COMPANY SEAGULL CHAIRMAN AND CHIEF EXECUTIVE BARRY GAULT ESTIMATED DURING A TELECONFERENCE THAT THE NOVALTA ACQUISITION WILL ADD BETWEEN US15 MILLION AND US20 MILLION TO THE HOUSTON OIL AND GAS PRODUCER'S ANNUAL CASH FLOW AND WILL ALSO BOOST ITS ANNUAL NET EARNINGS BY AN UNDISCLOSED LESSER AMOUNT NOVA'S FIGURES SET NOVALTA'S PROVEN GAS RESERVES AT 364 BILLION CUBIC FEET ITS OIL AND ITS LIQUIDS RESERVES AT 46 MILLION BARRELS MR GAULT SAID SEAGULL PLANS TO LEAVE NOVALTA'S MANAGEMENT TEAM STAFF AND ASSETS INTACT AND TO RUN THE COMPANY AS A CANADIAN SUBSIDIARY PROBABLY TO BE RENAMED SEAGULL CANADA HE SAID SEAGULL NEEDS TO DEVELOP A GAS SUPPLY BASE ON BOTH SIDES OF THE US /CANADA BORDER IN RESPONSE TO THE EMERGENCE OF A CONTINENTAL NATURALGAS MARKET AND THAT THE COMPANY WILL LOOK FOR ADDITIONAL MAJOR ACQUISITIONS TO FURTHER THIS GOAL AFTER THE NOVALTA TRANSACTION CLOSES 9311220100 931122 POLITICS & POLICY CONGRESS RUSHES TO CLOSE BOOK ON ONE BUSY YEAR BUT CLINTON PROMISES TO APPLY THE SPURS IN NEXT BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRODDED BY AN ACTIVIST NEW PRESIDENT AN EXHAUSTED CONGRESS SCRAMBLED TO FINISH ITS WORK FOR THE YEAR HANDING BILL CLINTON NOTABLE VICTORIES WHILE LOOKING AHEAD TO NEXT YEAR'S HEAVY AGENDA IT'S THE MOST PRODUCTIVE FIRST YEAR OF ANY PRESIDENT SINCE PRESIDENT EISENHOWER'S FIRST TERM SENATE MAJORITY LEADER GEORGE MITCHELL SAID ON NBC NEWS'S MEET THE PRESS YESTERDAY THE MAINE DEMOCRAT WHO WAS RELYING ON AN ANALYSIS IN CONGRESSIONAL QUARTERLY ADDED IT'S A REMARKABLE RECORD AND THE MOST STRIKING THING ABOUT THE AMERICAN POLITICAL SCENE NOW IS THAT HARDLY ANY AMERICANS KNOW IT OR BELIEVE IT SENATE GOP LEADER ROBERT DOLE OF KANSAS ON THE SAME PROGRAM SAID EACH PARTY CAN CLAIM SOME CREDIT IN CONGRESS AS FOR MR CLINTON MR DOLE SAID I THINK HE'S COMING ALONG CONGRESS IS EXPECTED TO ADJOURN AS EARLY AS TODAY THE SENATE'S LAST VOTE OF THE YEAR WAS SATURDAY NIGHT'S 6138 APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE HOUSE WORKED YESTERDAY TO PASS A DEMOCRATIC CAMPAIGNFINANCE BILL AND HEADED FOR A CONFRONTATION TODAY BETWEEN A BIPARTISAN GROUP OF DEFICIT HAWKS AND THE COMBINED OPPOSITION OF THE WHITE HOUSE AND THE DEMOCRATIC LEADERSHIP OVER A 90 BILLION PACKAGE OF BUDGET CUTS THE WEEKEND'S ACTION CAPPED A FRENETIC YEAR THAT REFLECTED THE PACE SET BY MR CLINTON AND WAS MARKED BY EXTREMES OF BOTH PARTISANSHIP AND COOPERATION EARLY IN THE YEAR THE PRESIDENT SAW HIS STIMULUS SPENDING PACKAGE FALL TO A REPUBLICAN FILIBUSTER AND IN THE SUMMER HE SET A DUBIOUS RECORD OF SORTS FOR MAJOR LEGISLATION WHEN HIS ECONOMIC PROGRAM PASSED IN CONGRESS WITHOUT A SINGLE GOP VOTE AT THE END OF THE SESSION HE WON ON NAFTA AN ISSUE ON WHICH HE'D STAKED HIS PRESIDENCY BUT ONLY WITH THE SUPPORT OF AN OVERWHELMING MAJORITY OF REPUBLICANS WHILE CONGRESS COMPLETED WORK ON NAFTA MUCH OF ITS LASTMINUTE ACTION WAS AIMED AT ADVANCING HIGHPROFILE ISSUES FOR FINAL SHOWDOWNS NEXT YEAR AFTER LAWMAKERS RETURN IN JANUARY THE HOUSE'S CAMPAIGNFINANCE BILL AND A SEPARATE LOBBYINGREFORM MEASURE MUST ULTIMATELY BE RECONCILED WITH MUCHDIFFERENT LEGISLATION PASSED BY THE SENATE AND REGARDLESS OF WHAT HAPPENS TO THE HOUSE'S DEFICITREDUCTION PACKAGE A BIPARTISAN SENATE GROUP WILL BE PUSHING ITS OWN VERSION NEXT YEAR IN EFFECT THE BUDGET FIGHT REPRESENTS A FIRST SKIRMISH IN THE STRUGGLE OVER MR CLINTON'S HEALTHCARE OVERHAUL PLAN HIS FOES ON THE BUDGET ARE TARGETING MEDICARE AND MEDICAID FOR SAVINGS WHILE THE ADMINISTRATION WANTS ANY SUCH SAVINGS TO HELP FINANCE EXPANDED HEALTH CARE THE SENATE PASSED A WIDERANGING 223 BILLION CRIME BILL TO FUND 100000 POLICE POSITIONS TO ADD 50 OFFENSES TO THE LIST OF CRIMES SUBJECT TO THE FEDERAL DEATH PENALTY AND TO BUILD NEW PRISONS IT NOW HEADS TO NEGOTIATIONS WITH THE HOUSE WHICH HAS PASSED LESS PUNITIVE PROVISIONS SEN MITCHELL WHILE BACKING THE OVERALL SENATE BILL DECRIED ITS ONEROUS AND IN MANY CASES GRANDSTANDING PROVISIONS THAT DO NOTHING HE SAID TO FIGHT CRIME SEN JOSEPH BIDEN D DEL THE BILL'S CHIEF SPONSOR CALLED THE FEDERALIZATION OF MANY CRIMES A TREND THAT DISTURBS ME GREATLY THE SENATE AND HOUSE ALSO MUST RESOLVE DIFFERENCES OVER THE BRADY BILL THAT WOULD REQUIRE A FIVEDAY WAITING PERIOD FOR GUN PURCHASES A MEASURE THAT MR CLINTON HAS LOBBIED FOR THE BILL NAMED FOR FORMER WHITE HOUSE PRESS SECRETARY JAMES BRADY WHO WAS PARALYZED DURING A 1981 ASSASSINATION ATTEMPT ON PRESIDENT REAGAN PASSED IN THE SENATE 6336 LATE SATURDAY JUST HOURS EARLIER IT HAD BEEN DECLARED DEAD TO A GOP FILIBUSTER BUT REPUBLICANS RETREATED IN THE FACE OF WIDESPREAD PUBLIC SUPPORT FOR THE MEASURE CONGRESSIONAL LEADERS WERE DETERMINED TO COMPLETE A MUCHDELAYED BILL TO EXTEND JOBLESS AID TO LONGTERM UNEMPLOYED WORKERS BEFORE LEAVING TOWN THE TWOYEAROLD AID PROGRAM PROVIDING AS MANY AS 13 WEEKS OF ADDITIONAL AID TO THOSE WHO EXHAUST THEIR BASIC 26 WEEKS OF STATE ASSISTANCE EXPIRED IN OCTOBER AND THE BILL EXTENDING IT UNTIL FEB 5 HAS BEEN A PAWN IN SEVERAL UNRELATED FIGHTS IN BOTH CHAMBERS MOST RECENTLY THE SENATE PASSED THE 1 BILLION JOBLESSAID BILL SATURDAY 7920 AFTER SEN PHIL GRAMM R TEXAS LOST HIS FIGHT TO ATTACH MR CLINTON'S PROPOSAL FOR FEDERAL WORKFORCE CUTS THE HOUSE ACTION ON CAMPAIGN FINANCES AND DEFICIT REDUCTION CONTRASTED WITH THE BIPARTISAN TONE STRUCK IN LAST WEEK'S NAFTA DEBATE THE CAMPAIGNFINANCE BILL'S CHIEF SPONSOR REP SAM GEJDENSON D CONN EXPRESSED CONFIDENCE IT WOULD PASS OVER THE OPPOSITION OF REPUBLICANS AND SOME DISGRUNTLED DEMOCRATS DEMOCRATIC LEADERS CONTEND THAT IT CURTAILS RUNAWAY CAMPAIGN SPENDING LIMITS SPECIALINTEREST INFLUENCE AND GIVES CHALLENGERS A BETTER CHANCE TO COMPETE BUT THE BILL WHICH IS WEAKER IN KEY RESPECTS THAN A SENATEPASSED VERSION ALSO CONTAINS NUMEROUS CONCESSIONS TO DEMOCRATIC INCUMBENTS AND CONSTITUENCY GROUPS THAT BENEFIT FROM THE CURRENT SYSTEM IT WOULD ESTABLISH VOLUNTARY SPENDING LIMITS OF 600000 FOR HOUSE CAMPAIGNS THOUGH THAT CEILING WOULD RISE WITH INFLATION EXEMPT SOME LEGAL AND FUNDRAISING COSTS AND INCLUDE AN EXTRA 200000 FOR SURVIVORS OF CLOSELY CONTESTED PRIMARIES EVEN A 600000 CEILING WOULD HAVE LIMITED EFFECT BECAUSE THE AVERAGE WINNING HOUSE CANDIDATE IN 1992 SPENT LESS THAN 550000 IN RETURN FOR COMPLYING CANDIDATES COULD RECEIVE PUBLICLY FUNDED VOUCHERS VALUED AT AS MUCH AS 200000 FOR ADVERTISING ALL CANDIDATES WHETHER THEY COMPLY WITH THE LIMITS OR NOT COULDN'T RECEIVE MORE THAN 200000 FROM POLITICAL ACTION COMMITTEES OR FROM CONTRIBUTIONS OF 200 OR MORE AFTER A WEEKENDLONG ASSAULT BY THE WHITE HOUSE AND HOUSE LEADERS BUDGET COMMITTEE CHAIRMAN MARTIN SABO D MINN EXPRESSED OPTIMISM THAT A BIPARTISAN PROPOSAL FOR ANOTHER 90 BILLION OF SPENDING CUTS OVER FIVE YEARS WOULD BE DEFEATED WHEN IT REACHES THE HOUSE FLOOR TODAY ADMINISTRATION OFFICIALS SAY THE PLAN SPONSORED BY REPS TIM PENNY D MINN AND JOHN KASICH R OHIO WOULD UNDERCUT PRESIDENT CLINTON'S HEALTH REFORM PLAN SIPHON MONEY FROM WHITE HOUSE INVESTMENT INITIATIVES AND EVEN HARM DEFENSE READINESS YESTERDAY THE ADMINISTRATION TOUTED AN ANALYSIS BY THE CENTER FOR BUDGET AND POLICY PRIORITIES A LIBERAL ADVOCACY GROUP THAT THE PENNYKASICH PLAN ACCOMPLISHES PART OF ITS SAVINGS BY SHIFTING 51 BILLION IN COSTS TO ALREADY STRETCHED STATE MEDICAID BUDGETS TO PROVIDE AN ALTERNATIVE FOR SKITTISH LAWMAKERS MR SABO PROPOSES TO CUT 37 BILLION OVER FIVE YEARS MOSTLY BY IMPLEMENTING MR CLINTON'S PLEDGE TO CUT THE FEDERAL WORK FORCE BY 252000 WORKERS BUT BECAUSE MR SABO'S PLAN ONLY SEEKS TO OUTLINE HOW THE ADMINISTRATION CAN MEET EXISTING SPENDING LIMITS IT DOESN'T SEEK ADDITIONAL DEFICIT REDUCTION WHILE CONCEDING THE ADMINISTRATION HOLDS THE UPPER HAND FOR NOW DEFICIT HAWKS INSISTED MR CLINTON WOULD PAY A POLITICAL PRICE NEXT YEAR FOR RESISTING AUSTERITY THE ADMINISTRATION JUST MADE A VERY BIG MISTAKE SAID SEN ROBERT KERREY D NEB PART OF A BIPARTISAN SENATE GROUP SEEKING MORE THAN 100 BILLION IN ADDITIONAL CUTS MEANWHILE CONGRESS ALSO MOVED TOWARD PASSAGE OF AN 183 BILLION MEASURE BILLED AS THE FINAL INSTALLMENT IN THE RESCUE OF THE THRIFT INDUSTRY AND TO CREATE A COMMUNITYDEVELOPMENT LENDING PROGRAM OF THE SORT THAT CANDIDATE CLINTON PROMISED IN 1992 JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9311220099 931122 BUSINESS BRIEF FIRST FIDELITY BANCORP SHARE REPURCHASE PROGRAM IS INCREASED FOR THIS YEAR FIRST FIDELITY BANCORP INCREASED ITS SHARE REPURCHASE PROGRAM FOR 1993 BY ABOUT 800000 SHARES TO APPROXIMATELY 24 MILLION SHARES THE LAWRENCEVILLE NJ COMPANY WITH 794 MILLION SHARES OUTSTANDING SAID IT WOULD RETURN TO ITS 2 OR APPROXIMATELY 16 MILLION SHARE REPURCHASE PROGRAM IN 1994 THE COMPANY SAID REPURCHASED SHARES WOULD BE USED IN PART TO REPLACE 23 MILLION SHARES IT AGREED TO ISSUE AS PART OF A PENDING ACQUISITION OF PEOPLE'S WESTCHESTER SAVINGS BANK FIRST FIDELITY'S REPURCHASE PLANS DON'T INCLUDE EXISTING PROGRAMS ASSOCIATED WITH THE COMPANY'S DIVIDEND REINVESTMENT AND STOCKOPTION PLANS FIRST FIDELITY WITH MORE THAN 600 BRANCHES HAS ABOUT 326 BILLION IN ASSETS 9311220098 931122 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED 10 NEW LISTINGS INCLUDING EIGHT INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 23 NEW LISTINGS FOR ITS NATIONAL MARKET SYSTEM INCLUDING 18 INITIAL PUBLIC OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED SIX NEW LISTINGS INCLUDING FOUR INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING IN THE FOLLOWING INITIAL OFFERINGS ASIA TIGERS FUND INC NEW YORK A CLOSEDEND FUND UNDER GRR CHATEAU PROPERTIES INC CLINTON TOWNSHIP MICH A REAL ESTATE INVESTMENT TRUST UNDER CPJ ELSAG BAILEY PROCESS AUTOMATION NV ROTTERDAM THE NETHERLANDS A MAKER OF INDUSTRIAL PROCESS SYSTEMS UNDER EBY HERITAGE US GOVERNMENT INCOME FUND ST PETERSBURG FLA A CLOSEDEND FUND UNDER HGA MUNIBOND INCOME FUND INC PLAINSBORO NJ A CLOSEDEND FUND UNDER MBD SMITH BARNEY HIGH INCOME OPPORTUNITY FUND INC NEW YORK A CLOSEDEND FUND UNDER HIO TALBOTS INC HINGHAM MASS A WOMEN'S APPAREL CATALOG AND RETAIL STORE COMPANY UNDER TLB TORCH ENERGY ROYALTY TRUST HOUSTON A TRUST THAT INVESTS IN OIL AND GAS PROPERTIES UNDER TRU THE BIG BOARD ALSO ADDED THE FOLLOWING ROYAL AHOLD ZAANDAM THE NETHERLANDS AHO A FOOD RETAIL COMPANY THAT FORMERLY TRADED OVERTHECOUNTER AND TRIARC COMPANIES INC WEST PALM BEACH FLA FORMERLY NAMED DWG CORP A HOLDING COMPANY UNDER TRY TRIARC PREVIOUSLY TRADED ON THE AMEX THE NASDAQ MARKET SYSTEM ADDED THE FOLLOWING INITIAL OFFERINGS MACE SECURITY INTERNATIONAL INC BENNINGTON VT A MAKER OF PERSONAL SECURITY PRODUCTS UNDER MACE STATE BANCSHARES INC PHILADELPHIA A BANK HOLDING COMPANY UNDER SBNP FULCRUM TECHNOLOGIES INC OTTAWA A DEVELOPER OF SUPPORTS SOFTWARE UNDER FULCF LANDAIR SERVICES INC GREENEVILLE TENN A TRANSPORTATION SERVICES COMPANY UNDER LAND QUAKER FABRIC CORP FALL RIVER MASS A MAKER OF WOVEN UPHOLSTERY FABRIC UNDER QFAB ROBERDS INC WEST CARROLLTON OHIO A HOME FURNISHING PRODUCTS RETAILER UNDER RBDS SCHNITZER STEEL INDUSTRIES INC PORTLAND ORE A MANUFACTURER OF FINISHED STEEL PRODUCTS UNDER SCHN TOWER AIR INC JAMAICA NY A CHARTER PASSENGER AIR SERVICE UNDER TOWR ALLIED LIFE FINANCIAL CORP DES MOINES IOWA A SMALLBUSINESS LENDING COMPANY UNDER ALFC ALLIED CAPITAL LENDING CORP WASHINGTON A SMALL BUSINESS LENDING COMPANY UNDER ALCL BOLLINGER INDUSTRIES INC IRVING TEXAS A SUPPLIER OF CONSUMER FITNESS ACCESORIES UNDER BOLL COFLEXIP BOULOGNEBILLANCOURT FRANCE A MANUFACTURER OF OFFSHORE FLE THREE COMPANIES MOVED TO THE NASDAQ NATIONAL MARKET FROM THE SMALLCAP MARKET LOJACK CORP DEDHAM MASS A DEVELOPER OF STOLEN VEHICLES RECOVERY SYSTEM UNDER LOJN INFORMATION RESOURCE ENGINEERING INC BALTIMORE A MAKER OF ENCRYPTION TECHNOLOGY UNDER IREG AND INTELLIGENT SURGICAL LASERS INC SAN DIEGO A DEVELOPER OF LASER SYSTEMS UNDER ISLSD ALSO OLD SECOND BANCORP INC AURORA ILL A MULTIBANK HOLDING COMPANY UNDER OSBC OLD SECOND WILL MOVE TO THE NASDAQ NATIONAL MARKET AFTER TRADING IN THE PINK SHEETS HARVARD INDUSTRIES INC FARMINGDALE NJ AN AUTOMOTIVE PARTS MAKER COMMON SHARES UNDER HAVAB AND PREFERRED UNDER HAVAP WAS APPROVED FOR THE NASDAQ NATIONAL MARKET FOLLOWING REORGANIZATION UNDER CHAPTER 11 THE AMEX BEGAN TRADING SHARES OF THE FOLLOWING INITIAL OFFERINGS VAN KAMPEN MERRITT SELECT SECTOR MUNICIPAL TRUST OAKBROOK TERRACE ILL A CLOSEDEND FUND UNDER VKL FRANKLIN SUPPLY CO CALGARY ALBERTA A DISTRIBUTOR OF OIL FIELD SUPPLIES UNDER FSL AND WARRANTS UNDER FSLWS PUTNAM INVESTMENT GRADE MUNICIPAL TRUST III BOSTON A CLOSEDEND FUND UNDER PML AND MUNIYIELD ARIZONA FUND II INC A CLOSEDEND FUND UNDER MZT ALSO SOI INDUSTRIES INC HIALEAH FLA WHICH DESIGNS AND MAKE LAMPS AND LIGHTING FIXTURES PREVIOUSLY TRADED OVERTHECOUNTER UNDER SOI AND SHEFFIELD MEDICAL TECHNOLOGIES INC HOUSTON A FUNDER OF BIOLOGICAL RESEARCH AND DEVELOPMENT PROJECTS FORMERLY TRADED OVERTHECOUNTER UNDER SHM AND WARRANTS UNDER SHMWS THE AMEX AND THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS ON EMPRESAS ICA SOCIEDAD CONTROLADORA SA DE CV A MEXICAN CONSTRUCTION COMPANY ON NOV 22 ALSO THE AMEX AND THE CBOE WILL ALSO TRADE OPTIONS ON THE OVERTHECOUNTERSTOCK OF SCORE BOARD INC CHERRY HILL NJ ON NOV 29 9311220097 931122 LEISURE & ARTS TELEVISION MARY POPPINS AND THE MUPPETS REVISITED BY ROBERT GOLDBERG EVERYONE EXCEPT PERHAPS ZOE BAIRD LOVES A GOOD STORY ABOUT A NANNY TAKE ONE SINGLE PARENT A GROUP OF CUTE BUT UNRULY LITTLE SCAMPS THROW IN AN ADMIRABLE BUT QUIRKY CHILDCARE PROFESSIONAL AND VOILA SOUND OF MUSIC FAMILY AFFAIR WHO'S THE BOSS THE FORMULA GOES BACK A LOT OF YEARS AND IT ALWAYS SEEMS TO WORK SO WHO'S MINDING THE KIDS NOW IF MARY POPPINS WERE A GORGEOUS YENTA FROM QUEENS SHE'D BE THE NANNY CBS WEDNESDAYS 8309 PM EST FRAN FINE FRAN DRESCHER IS SELLING COSMETICS DOORTODOOR WHEN SHE STUMBLES INTO THE LAVISH MANHATTAN TOWN HOUSE OF A WELLTODO BROADWAY PRODUCER CHARLES SHAUGHNESSY ONE OF NEW YORK'S 10 MOST ELIGIBLE WIDOWERS MAXWELL SHEFFIELD HAS MONEY HE HAS LOOKS HE HAS HIS OWN HAIR HE EVEN HAS AN ARCH BUTLER DANIEL DAVIS AND A SNOOTY GIRLFRIEND LAUREN LANE WHAT HE LACKS IS SOMEONE TO WATCH HIS KIDS FRAN ON THE OTHER HAND HAS NO RESUME NO EXPERIENCE NOT EVEN AN UMBRELLA BUT SHE DOES HAVE CHUTZPAH FASTER THAN YOU CAN SING CLIMB EVERY MOUNTAIN SHE'S HIRED OF COURSE SHE'LL HAVE TO ADJUST TO HIS WORLD VERY CLASSY SHE NODS APPROVINGLY IT'S LIKE LIVING AT CAESARS PALACE AND HE'LL HAVE TO ADJUST TO HERS A SHIKSA IS THAT LIKE A TCHOTCHKE HE ASKS YEAH SHE REPLIES ONLY IT COSTS A LOT MORE AND SO THE STAGE IS SET FOR THIS BRIDGEANDTUNNEL UPSTAIRS DOWNSTAIRS CULTURES CLASH STEREOTYPES FLY HE'S CLASSY SHE'S BRASSY HE'S A WASP A BRITISH WASP SHE'S A JAP HE'S ELEGANT SHE'S STREET SMART SHE HAS THAT NEW YAWK ACCENT OH MY GAWD HE'S HEAH THE BRAYING LAUGH THE NASAL VOICE THESE AREN'T CHARACTERS THEY'RE ETHNIC CARICATURES YET SOMEHOW THE NANNY IS FUNNIER THAN IT HAS ANY RIGHT TO BE ALL NAIL POLISH HAIR SPRAY AND TIGHT CLOTHES MS DRESCHER BREEZES THROUGH HER ROLE WITH A BLUECOLLAR INSOUCIANCE AND SHE'S ALWAYS A PLEASURE TO WATCH EVEN WHEN THE SCRIPTS GET BROAD AND SLOPPY FRAN'S NOT FAZED BY ANYTHING THE SOCIETY MATRONS AND THE JUNIOR DEBS THROW AT HER SHE LEARNED EVERYTHING SHE NEEDS TO KNOW AT FLUSHING HIGH HOSTING AN ELEGANT SOIREE NO PROBLEM MY UNCLE JACK THREW A WEEKEND BAR MITZVAH WITH A STAR TREK' THEME THAT THEY'RE STILL TALKING ABOUT AND WHEN ABOUT TO MEET THE BLUEBLOOD WENTWORTH FAMILY WHOSE ANCESTORS CAME OVER ON THE MAYFLOWER SHE'S LESS IMPRESSED THAN CURIOUS HOW DID THEY KNOW WHAT TO PACK I MEAN YOU'RE GOING TO A NEW WORLD IS IT HOT IS IT COLD IS IT RAINY THERE ARE NO BROCHURES THEY WERE PILGRIMS MISS FINE THEY ALL WORE THE SAME THING WHAT A MISTAKE VERY FEW PEOPLE CAN WEAR A BIG HAT A BIG COLLAR AND A BIG BUCKLE OF COURSE NANNY FINE'S REAL JOB ISN'T TRADING BONS MOTS WITH THE UPPER CRUST IT'S RAISING THE CHILDREN A MALADJUSTED TRIO WHO WORRY THAT THEIR DAD IS ALWAYS TOO BUSY TO SPEND ANY TIME WITH THEM QUALITY OR OTHERWISE IS HE SEEING OTHER KIDS ONE OF THEM FRETS AT ITS CORE THE NANNY OPERATES ON THE GRAND OLD HOLLYWOOD PREMISE THAT RICH PEOPLE ARE HOPELESSLY MESSED UP AND NEED TO BE RESCUED BY THE DOWNTOEARTH TOUCH OF A COMMON PERSON WITH A HEART OF GOLD OF COURSE IT WORKED FOR JULIE ANDREWS AND FOR TONY DANZA SO WHO IS FRAN DRESCHER TO BUCK THE TREND THEN AGAIN MARY POPPINS NEVER HAD SO MUCH SEX APPEAL OR SO MUCH ATTITUDE WHO'S REALLY TAKING CARE OF THE KIDS IN AMERICA FOR THE PAST 2 1/2 DECADES PARENTS HAVE BEEN PLUNKING THEIR CHILDREN DOWN IN FRONT OF THE TV SET AND IF THEY'RE LUCKY IT'S BEEN TURNED TO SESAME STREET THIS YEAR SESAME STREET PBS WEEKDAYS CHECK LOCAL LISTINGS CELEBRATES ITS 25TH ANNIVERSARY IN THAT TIME IT'S WON 51 EMMY AWARDS AND ACCORDING TO THE PRODUCERS AT CHILDREN'S TELEVISION WORKSHOP IS NOW THE MOST WIDELY VIEWED CHILDREN'S SERIES IN THE WORLD I WANTED TO SEE HOW BIG BIRD BERT ERNIE AND THE COOKIE MONSTER WERE HOLDING UP AFTER ALL THIS TIME SO I SAT DOWN WITH MY 1YEAROLD TO WATCH A QUARTERCENTURY YEARS LATER SESAME STREET STILL COVERS ALL THE BIG LETTERS ALL THE BIG NUMBERS IT STILL OFFERS THE SAME LIVELY BLEND OF SINGING AND DANCING MUPPETS AND PUPPETS ALL IN BITESIZE MORSELS FOR PRESCHOOL CHILDREN AND IT CONTINUES TO HAVE LOTS OF GREAT GUESTS FROM TENNIS PLAYER MICHAEL CHANG BOUNCING A BALL 40 TIMES TO FIRST LADY HILLARY RODHAM CLINTON DELIVERING SOME STIFF WORDS OF ADVICE YOU NEED TO EAT YOUR FRUITS AND VEGETABLES THIS SEASON THERE'S A NEW SET AROUND THE CORNER WITH A MUPPET HOTEL THE FURRY ARMS A DANCE STUDIO AND A PLAYGROUND THE MUSIC IS NOW MORE RAP THE DANCE MORE HIPHOP I HAVE TO ADMIT I FELT OLD ESPECIALLY WHEN COOKIE MONSTER WAS RAPPING CREAM OF WHEAT WORD UP THE OTHER THING YOU NOTICE IS HOW THE SHOW ALWAYS SENSITIVE TO CULTURAL DIVERSITY HAS NOW BECOME AGGRESSIVELY POLITICALLY CORRECT THERE'S A PLACE FOR EVERYONE ON TV BUT SESAME STREET SEEMS TO HAVE UNDERGONE A POPULATION EXPLOSION AS IT TRIES TO CRAM EVERY CONCEIVABLE MINORITY OR CHALLENGED GROUP ONTO THE SCREEN AS IT TURNS OUT MY SON WAS EQUALLY INTERESTED IN ALL THE KIDS BLACK AND WHITE AND BROWN BUT WHAT HE LIKED MOST WAS YELLOWBIG BIRD THAT HUGE GALUMPHING FEATHERBALL STILL HAS WHAT IT TAKES TO DRAW THE SMILES OUT OF LITTLE KIDSAND TO KEEP THEM INTERESTED IN LEARNING AFTER A FEW MINUTES OF TV WATCHING HOWEVER MY BOY WENT BACK TO LOOKING AT HIS BOOK AND I HAVE TO SAY ALTHOUGH THE FOLKS AT SESAME STREET MIGHT BE DISAPPOINTED I TAKE THAT AS A GOOD SIGN 9311220096 931122 THAILAND'S PLANS TO CUT WATER SUPPLIES SEEN HURTING FARMERS SOME INDUSTRIES BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND'S PLANS TO RESTRICT WATER USAGE THREATEN TO PARCH RICE GROWERS SOME INDUSTRIES AND HOTELS AND EVEN MASSAGE PARLORS OFFICIALS SAID SATURDAY THAT THEY WOULD REDUCE THE FLOW OF WATER SUPPLIES BY ABOUT 15 IN THE BANGKOK AREA AS WELL AS IN 22 OF THE COUNTRY'S 74 PROVINCES BEGINNING IN JANUARY IF THAT STEP AND OTHER CONSERVATION EFFORTS DON'T SUFFICE THE GOVERNMENT MAY BE FORCED TO SHUT OFF WATER ENTIRELY TO CERTAIN AREAS EVERY OTHER DAY BUT THE GOVERNMENT SAID IT WILL TRY TO SPARE INDUSTRIAL ZONES AND CENTRAL BANGKOK FROM THE BRUNT OF THE ACTION CONCENTRATING INSTEAD ON REDUCING USAGE IN RESIDENTIAL AREAS THE WATER SHORTAGE WILL BE VERY SERIOUS NEXT YEAR REQUIRING DRASTIC MEASURES WARNED SUVIT FOOTRAKUL GOVERNOR OF THE METROPOLITAN WATERWORKS AUTHORITY IN BANGKOK THE COUNTRY IS STILL DRYING OUT FROM THIS YEAR'S RAINY SEASON WHICH ENDED LATE LAST MONTH FOR THE THIRD YEAR IN A ROW HOWEVER THE RAIN DIDN'T FILL THE COUNTRY'S TWO MAJOR RESERVOIRS BOTH CONTAIN ONLY ABOUT HALF THE WATER CONSIDERED ADEQUATE FOR THIS TIME OF YEAR A SPOKESMAN FOR THE WATER AUTHORITY BLAMED INSUFFICIENT RAINFALL NEAR THE RESERVOIRS THE GOVERNMENT'S FAILURE TO ACT ON PROPOSALS TO BUILD NEW RESERVOIRS AND THE EFFECTS OF HEAVY LOGGING WHICH REDUCES THE SOIL'S ABILITY TO HOLD WATER PRIME MINISTER CHUAN LEEKPAI LAST WEEK CALLED THE WATER SHORTAGE A CRISIS AND ORDERED URGENT GOVERNMENT TALKS TO PREPARE CONTINGENCY PLANS THE IMPACT OF THE CUTS IS HARD TO PREDICT AS RATIONING HASN'T BEEN NECESSARY IN RECENT YEARS SOME COMPANIES SAID THEY WEREN'T WORRIED FOR INSTANCE SERM SUK CO WHICH BOTTLES PEPSICOLA AND OTHER SOFT DRINKS SAID IT HAS BEEN GUARANTEED ADEQUATE SUPPLIES THE GOVERNMENT PROMISES TO TRUCK WATER TO MAJOR COMPANIES AFFECTED BY THE SHORTAGE BUT SOME USERS ALREADY ARE SUFFERING AMONG THEM IS THE ROYAL GARDEN RIVERSIDE HOTEL ACROSS THE CHAO PHRAYA RIVER FROM BANGKOK'S MAIN BUSINESS DISTRICT ON THAT SIDE OF THE RIVER SUPPLIES HAVE BEEN UNPREDICTABLE FOR MORE THAN A YEAR THE HOTEL BRINGS IN WATER BY TRUCK AND HAS ADDED A HALF DOZEN WATER STORAGE TANKS AND THREE SMALL TREATMENT PLANTS TO MAKE UP FOR THE SHORTAGE THESE WILL NOT HELP US WHEN THE WATER IS RATIONED GROANS AXEL GOERLACH THE HOTEL'S GENERAL MANAGER THE WATER AUTHORITY AND THE INTERIOR MINISTRY SAY FARMERS ALSO WILL BE HURT THE YEAR'S SECOND CROP OF RICE IS EXPECTED TO BE CUT 20 TO 30 BECAUSE OF INSUFFICIENT WATER BECAUSE THE SECOND CROP MAKES UP ONLY ABOUT 20 OF THAILAND'S TOTAL ANNUAL RICE CROP THE CUTS WON'T HAVE A HUGE EFFECT ON OVERALL PRODUCTION BUT THEY WILL HURT FARM INCOME AT A TIME WHEN THE GOVERNMENT IS TRYING TO RAISE RURAL LIVING STANDARDS CLOSER TO THE URBAN LEVEL GOLF COURSES MAY HAVE TO SETTLE FOR BROWN FAIRWAYS IN ORDER TO HAVE ENOUGH WATER TO KEEP THEIR GREENS GREEN AND SOME PEOPLE MAY HAVE TO LET THEIR GARDENS WILT IF THEY WANT TO KEEP UP THE THAI HABIT OF AT LEAST TWO SHOWERS A DAY FOR AT LEAST ONE INDUSTRY THE CITY WILL TRY ANOTHER TACTIC THE WATER AUTHORITY PLANS TO RAISE WATER PRICES FOR THE CITY'S 99 LICENSED MASSAGE PARLORS THE AUTHORITY SAID THOSE ESTABLISHMENTS USE MORE THAN THE TOTAL AMOUNT USED BY INDUSTRY IN THE METROPOLITAN AREA 9311220094 931122 FANNIE MAE EXPANDS POLICY FOR REFINANCINGS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE FEDERAL NATIONAL MORTGAGE ASSOCIATION MOVED TO AID HOMEOWNERS WHO HAVE BEEN UNABLE TO REFINANCE THEIR MORTGAGES DUE TO LOW HOME EQUITY THE COMPANY EXPANDED ITS MORTGAGEREFINANCING POLICY TO INCLUDE HOME LOANS WITH AS LITTLE AS 5 BORROWER EQUITY PREVIOUSLY THERE WAS A 10 EQUITY REQUIREMENT THE CHANGE IS DESIGNED TO FACILITATE REFINANCING IN AREAS WHERE HOUSINGPRICE DECLINES HAVE ERODED EQUITY FANNIE MAE CHAIRMAN JAMES JOHNSON WHO ANNOUNCED THE CHANGE AT A CONGRESSIONAL HEARING FRIDAY SAID THE MOVE WILL BE AN ENORMOUS BENEFIT TO CONSUMERS ESPECIALLY THOSE LIVING IN AREAS WHERE HOME PRICES HAVE DECLINED HE CITED HOMEOWNERS IN CALIFORNIA MASSACHUSETTS NEW YORK AND NEW JERSEY AS LEADING PROSPECTIVE BENEFICIARIES MR JOHNSON TESTIFYING BEFORE A HOUSE BANKING SUBCOMMITTEE SAID FANNIE MAE ECONOMISTS CALCULATE THAT THE MORTGAGEREFINANCING BOOM HAS PLACED AN EXTRA 30 BILLION IN THE POCKETS OF CONSUMERS SINCE 1991 BUT HE PREDICTED SUBSTANTIALLY LESS REFINANCING ACTIVITY NEXT YEAR SUGGESTING HE EXPECTS INTEREST RATES TO RISE FANNIE MAE'S NEW POLICY APPLIES ONLY TO MORTGAGES IN WHICH IT HAS INVESTED OR BUNDLED TOGETHER AS SECURITIES THE COMPANY SAID REFINANCINGS THAT INVOLVE BORROWERS ACQUIRING FUNDS IN EXCESS OF THEIR MORTGAGE BALANCES AND SUBORDINATE FINANCING SUCH AS HOME EQUITY LOANS WON'T BE ELIGIBLE IT SAID HOMEOWNERS SHOULD CALL THEIR MORTGAGE SERVICERS FOR MORE INFORMATION ON THE NEW POLICY THE FEDERAL HOME LOAN MORTGAGE CORP KNOWN AS FREDDIE MAC IS CONSIDERING A SIMILAR MOVE BUT HASN'T MADE A DECISION YET A FREDDIE MAC SPOKESWOMAN SAID FANNIE MAE AND FREDDIE MAC ARE CONGRESSIONALLY CHARTERED SHAREHOLDEROWNED CORPORATIONS CHARGED WITH AIDING HOUSING 9311220093 931122 ECONOMY CLINTON TO PRESS FOR MOVEMENT ON WORLD TRADE HARD BARGAINING WITH EC IS SEEN CANADA'S LEADER SEEKS NEW SIDE ACCORDS BY JACKIE CALMES AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE US PLANS TO BEGIN HARD BARGAINING TODAY ON WORLD TRADE TALKS NOW THAT THE NORTH AMERICAN FREE TRADE AGREEMENT HAS CLEARED ITS FINAL HURDLE IN CONGRESS THE EUROPEAN COMMUNITY'S TRADE MINISTER SIR LEON BRITTAN IS EXPECTED HERE FOR TWO DAYS OF TALKS WITH US TRADE REPRESENTATIVE MICKEY KANTOR AIMED AT ADVANCING THE PERPETUALLY DEADLOCKED GLOBAL TRADE TALKS THE US HOPES TO BUILD ON ITS MOMENTUM IN WINNING CONGRESSIONAL APPROVAL OF NAFTA WHICH CLEARED THE SENATE ON SATURDAY BUT THE EC CONTENDS THAT THE US ISN'T PROPOSING SUFFICIENTLY DEEP TARIFF CUTS IN TEXTILES AND APPAREL TO MOVE THE NEGOTIATIONS FORWARD FOR ITS PART THE US SAYS THE EC IS USING THE DISPUTE OVER TEXTILES AND APPAREL AS A RUSE TO COVER EUROPE'S INABILITY TO GET FRANCE TO MAKE TRADE CONCESSIONS ON AGRICULTURE AS IF THIS ALL WEREN'T COMPLICATED ENOUGH CANADIAN PRIME MINISTER JEAN CHRETIEN ARGUED YESTERDAY ON ABC NEWS'S THIS WEEK WITH DAVID BRINKLEY THAT THE FIGHT OVER NAFTA WASN'T OVER HE CALLED FOR SIDE AGREEMENTS SUCH AS THOSE ON LABOR AND ENVIRONMENTAL ISSUES THAT PRESIDENT CLINTON NEGOTIATED LAST SUMMER WITH MEXICO TO GET A CLEARER DEFINITION OF SUBSIDY AND DUMPING AND TO HAVE SOME CLARIFICATION ON WATER AND SOME CLARIFICATION ON ENERGY MR CHRETIEN HAD CAMPAIGNED ON THOSE ISSUES IN HIS RECENT SUCCESSFUL ELECTION CAMPAIGN THE US ALREADY IS SEEKING FURTHER NEGOTIATIONS ON WHEAT AND PEANUT BUTTER A CONSEQUENCE OF PROMISES THE WHITE HOUSE MADE TO LAWMAKERS IN ITS BID FOR HOUSE VOTES BUT MR CHRETIEN SUGGESTED THE CHANGES HE SEEKS WOULD REQUIRE FURTHER LEGISLATIVE ACTION CONGRESS WILL RECESS FROM THIS WEEK UNTIL JANUARY AND US TRADE OFFICIALS REJECTED OUT OF HAND ANY CHANGE THAT WOULD REQUIRE ADDITIONAL LEGISLATION INSTEAD THE US EXPECTS TO DISCUSS WITH CANADA CHANGES IN THE WAY BOTH SIDES EVALUATE UNFAIR TRADE SUBSIDIES AND DUMPING OF GOODS AT BELOWMARKET PRICES THOSE AREAS ARE ALSO THE SUBJECT OF NEGOTIATIONS AT WORLD TRADE TALKS IN GENEVA THE US ALSO IS EXPECTED TO GIVE CANADA ASSURANCES THAT NAFTA WON'T REQUIRE CANADA TO SUPPLY THE US WITH WATER BUT US OFFICIALS SAID THEY WOULD REBUFF ANY EFFORT BY CANADA TO CHANGE PROVISIONS IN NAFTA SO CANADA CAN PROTECT ITS ENERGY INDUSTRY TO THE SAME DEGREE THAT MEXICO DOES UNDER NAFTA MEXICO AGREED FOR THE FIRST TIME TO OPEN SOME OF ITS ENERGY BUSINESS TO FOREIGN INVESTMENT BUT IT KEPT ITS OIL BUSINESS PROTECTED BY THE MEXICAN CONSTITUTION LARGELY UNDER WRAPS MR KANTOR IS EXPECTED TO MEET WITH CANADA'S NEW TRADE MINISTER SHORTLY AFTER THANKSGIVING TO DISCUSS THESE NAFTA PROBLEMS AS DIFFICULT AS THE NAFTA NEGOTIATIONS WERE WORLD TRADE TALKS BEING CONDUCTED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE ARE HARDER STILL NAFTA INVOLVED THREE COUNTRIES THE GATT TALKS ENCOMPASS 110 THE US HAD SEVERAL YEARS TO BARGAIN OVER NAFTA THE GATT TALKS HAVE LURCHED ON FOR SEVEN YEARS BUT HAVE A DEC 15 DEADLINE TO CUT A FINAL DEAL LAST WEEK IN GENEVA THE US PROPOSED SUBSTANTIAL TARIFF CUTS ON A NUMBER OF INDUSTRIAL GOODS ACCORDING TO U S TRADE OFFICIALS IF THE OFFER WERE ACCEPTED US TARIFFS ON ABOUT HALF OF THIS COUNTRY'S INDUSTRIAL IMPORTS WOULD BE ELIMINATED OVER A NUMBER OF YEARS HOWEVER MOST OF THESE ITEMS ALREADY HAVE ONLY NOMINAL TARIFF RATES THE US SAID IT ALSO WOULD CUT STEEP TEXTILE AND APPAREL TARIFFS WHERE TARIFFS OFTEN ARE HIGHER THAN 30 BUT NOT AS LIBERALLY AS WITH OTHER GOODS OVERALL THE US SAID IT WOULD CUT TARIFFS ON ABOUT 60 OF TEXTILE AND APPAREL ITEMS TO A TARIFF RATE BELOW 15 BUT A US TRADE OFFICIAL SAID IT WOULDN'T OFFER ANY SUBSTANTIAL CUTS ON A NUMBER OF SENSITIVE ITEMS SUCH AS COTTON APPAREL FOR FEAR SUCH A DEAL WOULD BE DEFEATED IN CONGRESS THE ADMINISTRATION COMPLICATED ITS ABILITY TO CONCLUDE A GATT PACKAGE DURING ITS NEGOTIATIONS WITH LAWMAKERS TO GAIN THEIR SUPPORT FOR NAFTA IN A DEAL DEAR TO TEXTILESTATE LAWMAKERS THE US SAID IT WOULD PUSH FOR A LONGER PHASEOUT OF AN ARCANE QUOTA SYSTEM THAT PROTECTS US TEXTILE AND APPAREL MAKERS SUCH TEXTILE PRODUCERS AS INDIA AND PAKISTAN COMPLAINED BITTERLY BUT THE EC HAS PROBLEMS OF ITS OWN IN THE GATT ROUND MOST NOTABLY FRANCE WHICH STEADFASTLY OPPOSES EVEN THE MODEST AGRICULTURAL LIBERALIZATION THAT THE US AND EC NEGOTIATED LAST YEAR UNDER PRESIDENT BUSH IN ADDITION US NEGOTIATORS SAY THE EUROPEANS HAVEN'T OFFERED TO CUT THEIR HIGH TARIFFS ON FISH AND HAVE MADE ONLY MODEST OFFERS TO REDUCE TARIFFS ON TRUCKS AND SEMICONDUCTORS SOMEHOW THE TWO SIDES MUST DEVISE COMPROMISES IN ALL THESE AREAS OR THE NEGOTIATIONS WOULD FAIL THE BETTING AMONG TRADE EXPERTS IS THAT THE TWO SIDES WILL AGREE TO MODEST CONCESSIONS TWIST THE ARMS OF OTHER GATT PARTNERS TO AGREE AS WELL DECLARE VICTORY AND GO HOME AFTER SEVEN YEARS OF EFFORT A GATT BREAKDOWN COULD UNDERMINE THE GLOBAL TRADING SYSTEM A PROSPECT SO FRIGHTENING THAT THE GATT NEGOTIATORS FEEL THE PRESSURE TO SALVAGE SOME SORT OF DEAL COMPARED WITH THE GATT WRANGLING THE SENATE'S BIPARTISAN APPROVAL OF NAFTA ON SATURDAY BY A 6138 VOTE WAS A BREEZE THE SENATE OUTCOME WAS NEVER IN DOUBT AND THE THREE DAYS OF SPORADIC DEBATE WERE AN ANTICLIMAX TO THE DRAMA OF THE CLOSELY DIVIDED HOUSE ALTHOUGH THE MARGIN OF VICTORY WAS PROPORTIONATELY WIDER THAN THE HOUSE'S 234200 VOTE THE SENATE VOTE EXPOSED THE SAME PAINFUL DIVISIONS IN MR CLINTON'S PARTY MOST LABOR ALLIES AND MANUFACTURINGSTATE SENATORS OPPOSED NAFTA REFLECTING THEIR VOTERS' FEARS THAT NAFTA WILL GREASE THE WAY FOR US COMPANIES TO HEAD SOUTH WHILE SUPPORTERS ECHOED MR CLINTON'S OPTIMISTIC PREDICTIONS OF INCREASED EXPORTS AND NEW JOBS TWENTYSEVEN DEMOCRATS SUPPORTED NAFTA BUT 28 OPPOSED IT AS IN THE HOUSE REPUBLICANS MADE UP THE MAJORITY OF NAFTA'S SUPPORT 34 OF THE 44 GOP SENATORS SUPPORTED THE FREETRADE AGREEMENT SENATE MAJORITY LEADER GEORGE MITCHELL SAID THE OUTCOME AFFIRMS THE LEADERSHIP ROLE OF THE UNITED STATES IN THIS HEMISPHERE AND AROUND THE WORLD BUT HE WAS ALONE IN MAINE'S CONGRESSIONAL DELEGATION IN SUPPORTING IT GIVEN THE STATE'S ANTINAFTA SENTIMENT STOKED BY PAST JOB LOSSES GRIPES WITH NEIGHBORING CANADA AND THE POPULARITY OF ANTINAFTA POPULIST ROSS PEROT SEN DON RIEGLE A DEMOCRAT FROM AUTOMAKING LABORSTRONG MICHIGAN DECRIED NAFTA AS A POISON CUP LEFT TO MR CLINTON BY THE REPUBLICAN BUSH ADMINISTRATION AND THE ULTIMATE EXPRESSION OF TRICKLEDOWN ECONOMICS SEN DANIEL MOYNIHAN D NY THE INTERNATIONALIST CHAIRMAN OF THE FINANCE COMMITTEE THAT HANDLES TRADE ISSUES ALSO CAME OUT IN OPPOSITION LEAVING CHARGE OF THE PRONAFTA SIDE TO SEN MAX BAUCUS D MONT PERHAPS THE BIGGEST SURPRISE WAS THE SUPPORT FOR NAFTA FROM TWO DEMOCRATIC LABOR STALWARTS LABOR COMMITTEE CHAIRMAN EDWARD KENNEDY AND SEN TOM HARKIN SEN KENNEDY CITED THE POTENTIAL BENEFITS TO HIGHTECH AND FINANCIAL SERVICES FIRMS IN MASSACHUSETTS WHILE IN SEN HARKIN'S IOWA CORN AND SOYBEAN FARMERS WERE BIG NAFTA SUPPORTERS 9311220092 931122 PRUDENTIAL INSURANCE RECEIVES LOWER RATING FROM DUFF & PHELPS CHICAGO THE CLAIMSPAYINGABILITY RATING OF PRUDENTIAL INSURANCE CO OF AMERICA WAS LOWERED BY DUFF & PHELPS CREDIT RATING CO DUFF & PHELPS LOWERED PRUDENTIAL'S RATING TO DOUBLEAPLUS FROM TRIPLEA BECAUSE OF THE CONTINUING CATASTROPHE RISK EXPOSURE OF PRUDENTIAL'S PROPERTY/CASUALTY SUBSIDIARIES AND UNCERTAINTIES SURROUNDING THE TOTAL COST OF SETTLING CLAIMS AGAINST THE PRUDENTIAL SECURITIES GROUP THE RATING AGENCY'S ACTION FOLLOWS PRUDENTIAL'S ANNOUNCEMENT LAST WEEK TO SELL 20 MILLION SHARES OF ITS PRUDENTIAL REINSURANCE HOLDINGS INC UNIT AT A MAXIMUM PRICE OF 21 A SHARE TO CUSHION THE BLOW FOR UNFORESEEN CLAIMS ARISING FROM ANY BUSINESS ALREADY ON THE BOOKS OF PRU RE ONE OF THE COUNTRY'S LARGEST REINSURERS PRUDENTIAL SAID IT WOULD PAY THE FIRST 210 MILLION OF ANY ENVIRONMENTAL LOSSES AND THE FIRST 75 MILLION OF ANY OTHER LOSSES 9311220091 931122 TECHNOLOGY & HEALTH HP OFFICIAL HACKBORN PLANS HIS RETIREMENT BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL PALO ALTO CALIF RICHARD A HACKBORN A HIGHLY RESPECTED HEWLETTPACKARD CO SENIOR EXECUTIVE WHO BUILT UP SOME OF THE COMPANY'S FASTESTGROWING BUSINESSES SAID HE WILL RETIRE NOV 30 MR HACKBORN AN HP EXECUTIVE VICE PRESIDENT AND HEAD OF ITS COMPUTER PRODUCTS ORGANIZATION A GROUP THAT BRINGS IN ROUGHLY HALF OF HP'S REVENUE AND INCLUDES PRODUCTS LIKE PERSONAL COMPUTERS PORTABLE COMPUTERS AND PC PERIPHERALS WILL BE SUCCEEDED AS HEAD OF THE ORGANIZATION BY A LONGTIME PROTEGE 39YEAROLD RICHARD E BELLUZZO MR HACKBORN 56 IS CREDITED WITH CREATING AND NURTURING HP'S HIGHLY PROFITABLE PRINTER BUSINESS MR HACKBORN PUSHED HP INTO LASER AND INKJET PRINTERS IN 1984 AND THROUGH RAPIDFIRE INNOVATION STRICT COST CONTROLS AND SAVVY MARKETING HAS KEPT HP'S SHARE OF THOSE MARKETS AT OVER 50 PRINTERS SUPPLIES AND RELATED EQUIPMENT NOW BRING IN THE COMPUTER CONCERN'S LARGEST SINGLE SOURCE OF REVENUE WHICH SOME ANALYSTS ESTIMATE AT MORE THAN A THIRD OF HP'S TOTAL REVENUE OF 2032 BILLION IN ITS LATEST FISCAL YEAR MR HACKBORN'S SUCCESSFUL PUSH INTO MASS MARKETS LIKE PRINTERS AND MORE RECENTLY PCS WHERE SALES VOLUMES ARE HIGH BUT PROFIT MARGINS TEND TO BE LOW HAS HELPED HP AVOID THE PLIGHT OF RIVALS LIKE INTERNATIONAL BUSINESS MACHINES CORP WHOSE PROFITS ARE SUFFERING NOW IN PART BECAUSE THEY DEPENDED TOO LONG ON HIGHPROFITMARGIN BUSINESSES MR HACKBORN IS CONSIDERED SOMETHING OF A RENEGADE IN HP HE INSISTED ON KEEPING HIS HEADQUARTERS IN BOISE IDAHO FOR EXAMPLE PARTLY TO BE FAR AWAY FROM HP'S MAIN OFFICE HE WAS ONE OF TWO LEADING CANDIDATES TO SUCCEED FORMER CHIEF EXECUTIVE OFFICER JOHN YOUNG HP EXECUTIVES SAY BUT HE TOOK HIMSELF OUT OF THE RUNNING LAST YEAR IN FAVOR OF TAKING EARLY RETIREMENT AND STAYING IN BOISE THE TOP HP JOB WENT IN OCTOBER 1992 TO LEWIS PLATT WHO WAS HEAD OF HP'S COMPUTER OPERATIONS AN HP SPOKESWOMAN SAID FRIDAY THAT THE COMPANY HAS BEEN PLANNING THE SUCCESSION SINCE MR HACKBORN MADE IT KNOWN TO TOP EXECUTIVES ABOUT A YEAR AGO THAT HE PLANNED TO RETIRE AS EARLY AS THIS YEAR MR HACKBORN WHO JOINED HP IN 1960 WILL REMAIN AN HP DIRECTOR THE SUCCESSION TO MR BELLUZZO AN HP VICE PRESIDENT AND 18YEAR HP VETERAN WHO NOW OVERSEES THE COMPANY'S ENTIRE PRINTER BUSINESS ISN'T LIKELY TO MEAN MUCH CHANGE IN MANAGEMENT STYLE MR BELLUZZO KNOWN AS ROCKET RICK INSIDE HP FOR HIS RAPID RISE UP THE CORPORATE LADDER HAS BEEN ONE OF MR HACKBORN'S RIGHTHAND MEN FIRST AS HEAD OF ITS LASERPRINTER BUSINESS AND THEN AS HEAD OF ITS INKJETPRINTER BUSINESS WE'VE BEEN WORKING TOWARD EVOLVING TOWARD THIS TRANSITION FOR SOME TIME SAID MR BELLUZZO IN AN INTERVIEW THE BASIC VALUES AND PRINCIPLES WE'VE USED TO BUILD THIS BUSINESS WILL STAY INTACT AMONG MR BELLUZZO'S OBJECTIVES IN HIS NEW POST TO PUT HP AMONG THE NATION'S TOP FIVE PC SELLERS UP FROM ABOUT 10TH PLACE NOW 9311220089 931122 HALPERIN FACES NEW HURDLE IN HIS BID TO BECOME ASSISTANT DEFENSE SECRETARY BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH HIS NOMINATION SENT BACK TO THE WHITE HOUSE BY THE SENATE MORTON HALPERIN MAY BECOME THE LOSER IN A NEW GAME OF MUSICAL CHAIRS UNDER WAY AT THE PENTAGON MR HALPERIN'S BID TO BECOME AN ASSISTANT DEFENSE SECRETARY IN CHARGE OF PEACEKEEPING DEMOCRACY AND DRUG INTERDICTION POLICIES DREW INTENSE OPPOSITION AT HEARINGS BEFORE THE SENATE ARMED SERVICES COMMITTEE AND NEVER CAME TO A VOTE A PENTAGON SPOKESMAN SAYS THERE'S EVERY INDICATION THAT PRESIDENT CLINTON WILL RESUBMIT IT NEXT YEAR BUT SINCE HIS NOMINATION CONGRESS HAS REDUCED THE NUMBER OF ASSISTANT SECRETARY POSITIONS AT THE PENTAGON TO 10 FROM 11 SO THAT MR HALPERIN AND TWO OTHER NOMINEES MUST VIE FOR TWO SLOTS A SPOKESMAN FOR THE PENTAGON SAID THAT ONE JOB MIGHT BE RETITLED MEANING IT WOULD BE PLACED BENEATH THE LEVEL THAT REQUIRES SENATE CONFIRMATION DOWNGRADING MR HALPERIN'S JOB WOULD BE A DIFFICULT DECISION FOR DEFENSE SECRETARY LES ASPIN A CLOSE LONGTIME FRIEND OF MR HALPERIN MR ASPIN CREATED THE PEACEKEEPING JOB FOR MR HALPERIN LAST YEAR SHORTLY AFTER PRESIDENT CLINTON TOOK OFFICE BUT THE MOVE COULD BECOME INEVITABLE BECAUSE MR HALPERIN DOESN'T APPEAR TO HAVE A MAJORITY OF THE CONSERVATIVE SENATE PANEL BEHIND HIM IN HIS BID FOR CONFIRMATION LAST WEEK UNDER CLOSE QUESTIONING BY THE COMMITTEE'S CHAIRMAN SEN SAM NUNN D GA MR HALPERIN SAID HE REGRETTED SOME OF HIS MORE CONTROVERSIAL WRITINGS INCLUDING AN ASSERTION THAT THE CENTRAL INTELLIGENCE AGENCY'S SECRET OPERATIONS SHOULD BE ABOLISHED AND A FAVORABLE REVIEW OF A BOOK BY PHILIP AGEE WHO DISCLOSED THE IDENTITIES OF US AND BRITISH SPIES THREE OF THE SPIES LATER WERE ASSASSINATED MR HALPERIN THE FORMER HEAD OF THE WASHINGTON OFFICE OF THE AMERICAN CIVIL LIBERTIES UNION ALSO APOLOGIZED FOR PUSHING AHEAD WITH DEFENSE POLICY MATTERS BETWEEN MARCH AND MAY WHEN THE PENTAGON TIGHTENED RESTRICTIONS ON CONSULTANTS AWAITING CONFIRMATION REPUBLICAN MEMBERS OF THE COMMITTEE APPEAR TO BE UNITED AGAINST MR HALPERIN MR NUNN WHO HASN'T SAID HOW HE WOULD VOTE ON CONFIRMING MR HALPERIN INDICATED THAT THE COMMITTEE WILL PUSH TO HAVE THE PENTAGON MAKE PUBLIC MORE OF MR HALPERIN'S ADVICE TO THE AGENCY SO FAR MR HALPERIN HAS RECEIVED HIS STRONGEST BACKING FROM FOUR SENATE DEMOCRATS LED BY SEN JOSEPH BIDEN D DEL THEY PRAISED HIM FOR HIS ROLE AS THE CHIEF LOBBYIST FOR THE ACLU THIS IS THE MOST PRINCIPLED MAN I HAVE EVER WORKED WITH SAID MR BIDEN UNFORTUNATELY FOR MR HALPERIN NONE OF THE FOUR ARE MEMBERS OF THE ARMED SERVICES COMMITTEE 9311220088 931122 SMALL STOCK FOCUS VANCOUVER'S STOCK EXCHANGE FACES CHANGES BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL VANCOUVER BRITISH COLUMBIA THE GOVERNMENT OF BRITISH COLUMBIA IS ONCE AGAIN TRYING TO REIN IN THE VANCOUVER STOCK EXCHANGE HOME TO SOME OF NORTH AMERICA'S MOST FREEWHEELING ENTREPRENEURS AND SOME OF ITS MOST UNHAPPY INVESTORS OVER THE YEARS THOUSANDS OF WOULDBE MILLIONAIRES SANK THEIR SAVINGS INTO SUCH ODDBALL SCHEMES AS OSTRICH RANCHES AND AUTOMATIC PLANTWATERING DEVICES ON VANCOUVER'S VENTURE CAPITAL MARKET ONLY TO LOSE THEIR SHIRTS AS THE COMPANIES TURNED OUT TO BE OVERPROMOTED FAILURES OR OUTRIGHT SCAMS THE INQUIRY INTO THE EXCHANGE THAT HAS BEEN UNDERTAKEN BY JAMES MATKIN A LOCAL LAWYER AND ONETIME MORMON MISSIONARY MAY CHANGE THE WAY BUSINESS IS DONE ON THE VANCOUVER MARKET IN THE WAKE OF NEW SCANDALS AND A DEATH THREAT AGAINST A LOCAL REPORTER WHO SPECIALIZES IN UNCOVERING VSE SCAMS THE PROVINCIAL GOVERNMENT HAS ASKED MR MATKIN TO SUBMIT RECOMMENDATIONS TO CLEAN UP THE MARKET AND REFURBISH ITS TATTERED IMAGE WITH TWO MONTHS TO GO BEFORE SUBMITTING HIS FINAL REPORT MR MATKIN DECLINES TO DISCUSS ANY RECOMMENDATIONS HE MIGHT MAKE BUT HE HINTS AT MAJOR CHANGES TO THE WAY THE MARKET OPERATES IN ORDER TO RESTORE CONFIDENCE IN THE VSE WHILE MANY BROKERS INSIST THE VSE SUFFERS ONLY FROM AN IMAGE PROBLEM AND HOPE MR MATKIN WILL ISSUE A CLEAN BILL OF HEALTH THEY CONCEDE THE INQUIRY IS LIKELY TO GENERATE SWEEPING REGULATORY CHANGES THE MATKIN COMMISSION OBVIOUSLY FEELS UNDER PRESSURE TO REASSURE INVESTORS SAYS WILLIAM OBRIAN BRANCH MANAGER AND COMPLIANCE OFFICER OF JONES GABLE & CO ONE OF VANCOUVER'S MANY SMALL BROKERAGE HOUSES MR MATKIN VOICES PARTICULAR CONCERN THAT INSTITUTIONAL INVESTORS NOW ACCOUNT FOR 86 OF THE ACTIVITY ON THE VSE GROWING NUMBERS OF INSTITUTIONAL INVESTORS INCLUDING STODGY BRITISH PENSION FUNDS ARE LOSING MONEY ON THE EXCHANGE MR MATKIN SAYS HE'S GLAD INSTITUTIONS LIKE THE VSE BUT WORRIES ABOUT THE FLIGHT OF RETAIL INVESTORS A SURVEY OF 300 BRITISH COLUMBIA INVESTORS SHOWED THAT 80 BELIEVE VSELISTED COMPANIES ARE MORE A PRODUCT OF PROMOTION THAN SUBSTANCE TWOTHIRDS SAID THEY THINK THE EXCHANGE OPERATES FOR THE BENEFIT OF ITS MEMBER BROKERAGE FIRMS RATHER THAN ON BEHALF OF INVESTORS ONE REFORM MR MATKIN IS LIKELY TO LAUNCH IS TO RESTORE TO THE BC SECURITIES COMMISSION SOME OF THE REGULATORY POWERS NOW EXERCISED BY THE VSE ITSELF SOME OF THE EXCHANGE'S SELFREGULATORY PRIVILEGES HAVE TO BE REMOVED ARGUES JOHN WOODS EDITOR OF CANADA STOCKWATCH A VANCOUVERBASED NEWSLETTER LETTING THE EXCHANGE'S MEMBER BROKERS SHOULDER MANY REGULATORY DUTIES HE SAYS IS LIKE LEAVING THE FOX IN CHARGE OF THE HEN HOUSE THERE'S NO INCENTIVE FOR THE EXCHANGE OFFICIALS TO CLAMP DOWN ON THEIR EMPLOYERS CRITICS WONDER FOR EXAMPLE WHY THE VSE DESPITE ITS OWN MUCHHERALDED REFORMS DIDN'T CATCH ON TO RECENT SCAMS THERE WAS THE CASE OF THE PRESIDENT OF A MEDICALTESTINGKIT MANUFACTURER WHO MISREPRESENTED HIMSELF AS A DOCTOR FROM YALE AND THERE WAS THE FRENCHFRYMACHINE VENDING CONCERN THAT REPORTED NONEXISTENT SALES IN THE COMPLEX PINERIDGE SCANDAL STILL BEING UNCOVERED ABOUT 50 MILLION CANADIAN DOLLARS US378 MILLION OF INVESTORS' MONEY IN A GROUP OF COMPANIES HEADED BY PINERIDGE CAPITAL GROUP SIMPLY DISAPPEARED CRITICS SAY THE VSE SHOULD HAVE CAUGHT THE PINERIDGE SCANDAL EARLY ON AND INVESTIGATED THE REASON FOR THE SOARING MARKET VALUES OF GROUP COMPANIES AT A TIME WHEN THEY WERE REPORTING LARGE LOSSES WE'VE TRIED TO FOCUS ON WHETHER WE SHOULD HAVE MORE MERIT REVIEW OF NONRESOURCE STOCKS MR MATKIN SAYS NOTING THESE SEEM TO BE MORE VULNERABLE TO ABUSE BUT HE WARNS THAT THIS IS A DIFFICULT PROCESS YOU'VE GOT AN IDEA YOU'VE GOT THE PEOPLE THEY MIGHT BE A BUNCH OF CHARLATANS BUT MORE DISCLOSURE ISN'T NECCESSARILY GOING TO HELP IT'S SOME OF THE PEOPLE BEHIND THE COMPANIES THAT MOST WORRY CRITICS LIKE MR WOODS THE SAME GUYS SURFACE AGAIN AND AGAIN BEHIND SOME OF THE BIGGEST SCAMS MR WOODS SAYS BUT THEY'RE STILL IN BUSINESS PROMOTERS HIRED TO WHIP UP INVESTOR INTEREST IN A STOCK DRAW PARTICULAR IRE THEIR ACTIVITIES WHICH INCLUDE HYPERBOLIC AND OCCASIONALLY FRAUDULENT STATEMENTS ABOUT A COMPANY'S PROSPECTS REMAIN UNREGULATED IN CONTRAST TO BROKERS AND COMPANY DIRECTORS THE SYSTEM CAN WORK WELL MURRAY PEZIM A FLAMBOYANT VETERAN OF THE VANCOUVER PROMOTION COMMUNITY RAISED SEED CAPITAL FOR THE HEMLO GOLD PLAY HEMLO WHICH BECAME CANADA'S LARGESTEVER GOLD DISCOVERY REMAINS VANCOUVER'S GREATEST SUCCESS STORY WITHOUT A PROMOTER SOMEONE LIKE ME FORGET IT MR PEZIM SAYS OF THE CHANCES OF SUCCESSFULLY RAISING MONEY ON THE VSE BUT EVEN MR PEZIM WANTS MORE REGULATION OF PROMOTERS AND MEASURES THAT WOULD FORCE THEM TO DISCLOSE THE EXTENT OF THEIR INVOLVEMENT IN COMPANIES THEY PROMOTE FRANK GIUSTRA PRESIDENT OF YORKTON SECURITIES INC ONE OF THE LARGEST VANCOUVERBASED BROKERAGE HOUSES WARNS THAT WITHOUT THE POWER TO DISCIPLINE PROMOTERS THE VANCOUVER MARKET WILL NEVER SUCCEED IN CURBING ABUSES THE TRUE FUNCTION OF A PROMOTER IS TO RAISE THE PROFILE OF A COMPANY MR GIUSTRA SAYS WHAT ACTUALLY HAPPENS IN SOME CASES IS THAT THE PROMOTERS ARE THERE TO MAKE A KILLING FOR THE PROMOTERS WITHOUT ANY REGARD FOR THE COMPANY AND ITS FATE THEY JUST TAKE THE MONEY AND RUN MR MATKIN SAYS HE'S SEEKING A WAY TO ALLOW INVESTORS TO JUDGE THE TRACK RECORDS OF PROMOTERS COMPANY EXECUTIVES AND BROKERS BEFORE THEY INVEST TO ALLOW THEM TO MAKE INFORMED DECISIONS SO FAR THERE'S LITTLE ENTHUSIASM AMONG VANCOUVER'S INVESTMENT COMMUNITY FOR THE MATKIN COMMISSION NO BROKERS FOR EXAMPLE SHOWED UP AT THE PUBLIC HEARINGS TO STATE THEIR CASE MANY OBSERVERS SAY PUBLICLY THERE'S LITTLE NEED FOR THE PROCESS I THINK ALL MR MATKIN CAN DO IS CONFIRM THAT THERE WAS A PROBLEM 10 YEARS AGO IF HE'S PRESENTED WITH ALL THE FACTS AND BOTH SIDES OF THE STORY SAYS NORM THOMPSON PRESIDENT OF UNION SECURITIES A VANCOUVER INVESTMENT DEALER WE THINK WE'RE WEARING THE WHITE HATS HERE PRIVATELY HOWEVER VANCOUVER BROKERS ADMIT TO BEING CONCERNED BY THE INQUIRY THEY WORRY ON ONE HAND ABOUT STIFLING THE MARKET WITH REFORMS AND NEW REGULATIONS BUT THEY ALSO FEAR STIFFER MEASURES IF REFORMS FAIL AND NEW SCANDALS SURFACE AS POLITICAL TOLERANCE FOR VANCOUVER'S ANTICS EBBS AWARE THAT AN INQUIRY WAS ABOUT TO BE LAUNCHED A COMMITTEE OF BROKERS ITSELF ANNOUNCED NEW RULES LAST SUMMER THESE CUT BY HALF THE NUMBER OF CHEAP WARRANTS A BROKER CAN GET FOR UNDERWRITING A STOCK ISSUE TO 25 OF THE ISSUE'S VALUE AND BOOSTED TO 300 FROM 200 THE MINIMUM NUMBER OF SHAREHOLDERS OBVIOUSLY THERE WAS EXTREME PRESSURE BEHIND THESE CHANGES SAYS ADRIAN DU PLESSIS A VANCOUVERBASED RESEARCHER AND FORMER VSE FLOOR TRADER WE'LL HAVE TO SEE IF THEY WORK SO FAR THE VANCOUVER MARKET IS THRIVING DESPITE ITS TARNISHED REPUTATION IT'S IN THE MIDST OF A BULL MARKET WOULDBE INVESTORS CROWD ITS STOREFRONT VISITORS' CENTER CHECKING STOCK PRICES ON TERMINALS ATTENDING LUNCHTIME SEMINARS ON INVESTING FOR NOVICES AND PURCHASING SWEAT SHIRTS AND COFFEE MUGS EMBLAZONED WITH THE EXCHANGE'S MOTTO NOTHING VENTURED NOTHING GAINED YORKTON'S MR GIUSTRA HOWEVER BELIEVES THE VSE'S REPUTATION WILL ULTIMATELY PROVE BAD FOR BUSINESS CHANGE IS JUST A MATTER OF SELFPRESERVATION HE SAYS A HOT MARKET DOESN'T LAST FOREVER A SHARP DECLINE IN BOND PRICES CAUSED SMALLCOMPANY STOCKS TO SLIDE FOR A FIFTHSTRAIGHT DAY THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES DROPPED 101 POINTS OR 040 TO FINISH AT 25099 FOR THE WEEK THE INDEX SAGGED 695 POINTS OR 269 WE SAW A CONTINUATION OF THE PROFITTAKING THAT HIT EVERY DAY THIS WEEK SAID WILLIAM HANEMAN SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEGG MASON WOOD WALKER HE ADDED THAT MANY INVESTORS CLOSED OUT THEIR BETS AHEAD OF THANKSGIVING NEXT WEEK IS EXPECTED TO BE SLOW BECAUSE OF THE HOLIDAY NEW ISSUE RAILTEX INC CLOSED AT 21 1/4 UP FROM ITS 1650 OFFERING PRICE AFTER THE CLOSE THURSDAY THE OPERATOR OF SHORTLINE FREIGHT RAILROADS SAID IT WILL USE PROCEEDS TO REDUCE DEBT THE INSURANCE SECTOR CAME UNDER PRESSURE AGAIN FRIDAY AMONG THE COMPONENTS OF THE NASDAQ INSURANCE INDEX FIRST AMERICAN FINANCIAL OF SANTA ANA CALIF FELL 1 1/2 TO 33 1/4 TAKECARE SLIPPED 5/8 TO 44 3/4 AND UNITED WISCONSIN SERVICES DROPPED 1 1/4 TO 27 1/2 AN ALEX BROWN & SONS INC RATING CUT TO BUY FROM STRONG BUY LOPPED 4 7/8 OFF ZILOG'S SHARE PRICE CAUSING THE STOCK TO FINISH AT 28 7/8 ALEX BROWN SEMICONDUCTOR ANALYST ERIK JANSEN SAID THE DOWNGRADE REFLECTS A LOWERTHANEXPECTED LEVEL OF BUSINESS FOR PLUGIN COMPUTER CARD PRODUCTS CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9311220087 931122 CP FOREST TO TAKE 102 MILLION CHARGE TO WRITE OFF STAKE MONTREAL CANADIAN PACIFIC FOREST PRODUCTS LTD SAID IT WILL TAKE A PRETAX CHARGE OF ABOUT 135 MILLION CANADIAN DOLLARS US102 MILLION TO WRITE OFF ITS 86 STAKE IN A PARTNERSHIP THAT OPERATES A NEWSPRINT MILL IN GOLD RIVER BRITISH COLUMBIA THE PARTNERSHIP GOLD RIVER NEWSPRINT LP SAID IT WILL HALT INTEREST AND PRINCIPAL PAYMENTS AND HAS PROPOSED A STANDSTILL AGREEMENT WITH LENDERS TO ALLOW THE MILL TO CONTINUE OPERATING WHILE IT DEVELOPS A PLAN TO RESTRUCTURE ITS C226 MILLION IN LONGTERM DEBT GOLD RIVER'S LIMITED PARTNERS INCLUDE SEVERAL US AND OVERSEAS NEWSPAPER COMPANIES DAVID TOOLE CHIEF FINANCIAL OFFICER FOR CP FOREST SAID THE MILL WHICH OPENED IN 1990 IS LOSING ABOUT C80 MILLION A YEAR MAINLY BECAUSE OF DEPRESSED NEWSPRINT PRICES NORTH AMERICAN NEWSPRINT PRICES PICKED UP LAST SPRING AMID CONCERN ABOUT POSSIBLE SUMMER LABOR DISRUPTIONS BUT HAVE SINCE FALLEN TO ABOUT 430 A METRIC TONNEAR THE LOW POINT OF A PROLONGED SLUMP MR TOOLE SAID OVERCAPACITY CONTINUES TO PLAGUE THE INDUSTRY AND SOME OBSERVERS PREDICT THAT IF PRICES DON'T RISE NEXT YEAR SOME NEWSPRINT MILLS WILL BE FORCED TO SHUT MR TOOLE SAID THE WRITEOFF ABOUT C80 MILLION AFTER TAX IS LIKELY TO SWELL CP FOREST'S NET LOSS FOR 1993 TO AROUND C260 MILLION EXCLUDING UNUSUAL ITEMS THE MONTREAL FORESTPRODUCTS COMPANY'S 1993 LOSSES ARE EXPECTED TO BE IN LINE WITH THE 1992 LOSS OF C248 MILLION HE SAID FOR THE FIRST NINE MONTHS OF THIS YEAR CP FOREST HAD A LOSS OF C1251 MILLION OR C216 A SHARE INCLUDING A NET GAIN OF C603 MILLION FROM THE SALE OF EQUITY IN ITS WOODPRODUCTS UNIT CP FOREST WHICH HAD BEEN EXPECTED TO INJECT ABOUT C50 MILLION IN GOLD RIVER BY BUYING SUBORDINATED NOTES NEXT YEAR SAID IT WON'T PROVIDE FURTHER FUNDING FOR THE MILL WITHOUT ASSURANCE OF REPAYMENT THAT SEEMED TO CHEER INVESTORS IN TRADING ON THE TORONTO STOCK EXCHANGE CP FOREST CLOSED AT C1850 A SHARE UP 625 CANADIAN CENTS 9311220086 931122 WORLD MARKETS TOKYO STOCKS SLUMP 12 ON DISAPPOINTMENT ABOUT ECONOMIC DEVELOPMENTS IN JAPAN US A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES DIVED 12 FRIDAY IN A ROUGHANDTUMBLE SESSION MARKED BY DISAPPOINTMENT ABOUT EFFORTS TO FIND MEDICINE FOR JAPAN'S SICK ECONOMY AND ABOUT US MARKETS' FAILURE TO RALLY ON THE HOUSE'S PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT WITH CANADA AND MEXICO MEXICAN STOCKS EDGED UP TO YET ANOTHER RECORD AFTER RETAILING AND BANKING ISSUES PULLED THE MARKET UP FOLLOWING A ROUND OF PROFITTAKING LONDON EQUITIES LOST GROUND OPENING LOWER AND NEVER REGAINING POSITIVE TERRITORY IN DEALINGS SADDLED BY TECHNICAL PROBLEMS ON THE EXCHANGE FRANKFURT STOCKS CLOSED BROADLY LOWER BECAUSE OF FACTORS RELATED TO FUTURES ACTIVITIES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11008 DOWN 090 REFLECTING DECREASES IN EUROPE THE AMERICAS AND ASIAN/PACIFIC MARKETS PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 17131 UP 578 OR 349 WITH CONSOLIDATED PLANTATIONS OF MALAYSIA POSTING A 714 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 7144 DOWN 293 OR 394 WITH NIPPON SUISAN OF JAPAN SLIDING 647 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 5761 POINTS THURSDAY PLUNGED 22513 TO 1794119 WHICH ALSO THE INTRADAY LOW AND THE FIRST FINISH BELOW 18000 SINCE MARCH 16 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 260 MILLION SHARES UP FROM 2041 MILLION SHARES A DAY EARLIER ARBITRAGE SELLING ACCOUNTED FOR ABOUT TWOTHIRDS OF ACTIVITY LOSING ISSUES TROUNCED WINNING ISSUES 712251 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 1050 POINTS THURSDAY DROPPED 1173 TO 153959 AT THE OPENING FRIDAY TOKYO PRICES DROPPED ABOUT 1 ON DISAPPOINTMENT ABOUT THE FAILURE OF WALL STREET AND THE US DOLLAR TO RALLY THURSDAY ON THE US HOUSE'S APPROVAL OF NAFTA BY EARLY AFTERNOON PRICES HAD REVERSED TO GAIN ABOUT 1 BUT DEALERS AND ARBITRAGERS LED A SELLOFF IN RESPONSE TO A NEWS REPORT THAT JAPAN'S FINANCE MINISTRY HAD BEGUN TO STUDY LEGAL CHANGES TO SET UP A MARKET TO TRADE LOANS WHICH COULD HELP REDUCE FINANCIAL INSTITUTIONS' BAD LOANS OUTSTANDING THE ACTION WAS INTERPRETED AS HAVING LITTLE IMMEDIATE BENEFICIAL EFFECTS TO IMPROVE THE ECONOMY ONLY FOUR SECTORS EKED OUT ADVANCES PETROLEUM COMMUNICATIONS PAPER AND NATURAL GAS TOKYO INVESTORS FOCUSED ON THE WEEKEND SUMMIT OF ASIAPACIFIC LEADERS IN SEATTLE AFTER THE MARKET CLOSED THE JAPANESE GOVERNMENT'S TAX ADVISORY COUNCIL OUTLINED A REFORM PLAN TO CUT INCOME TAXES AND LATER BOOST CONSUMPTION TAXES BUT IT DIDN'T MAKE RECOMMENDATIONS ABOUT THE SCALE OR TIMING OF THE INITIATIVES LEAVING THESE ISSUES TO POLITICIANS AND PROVIDING LITTLE INCENTIVE FOR STOCK INVESTORS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 175 POINTS TO 31080 THE FT 30STOCK INDEX DROPPED 138 POINTS TO 23576 VOLUME WAS 5144 MILLION SHARES DOWN SHARPLY FROM 7063 MILLION SHARES A DAY EARLIER AS MOST INVESTORS LEFT FOR AN EARLY WEEKEND FOLLOWING FAIRLY VOLATILE DEALINGS RECENTLY LONDON'S TONE WAS INFLUENCED BY THE CONTINUED WEAKENING TREND ON WALL STREET THE NEGATIVE SENTIMENT WAS REINFORCED BY TECHNICAL PROBLEMS AT THE LONDON EXCHANGE THAT PREVENTED TIMELY UPDATES OF PRICES GIVEN THE LACK OF ANY MAJOR CORPORATE RESULTS OR ECONOMIC DATA A TRADING THEME DIDN'T EMERGE IN FRANKFURT THE DAX 30STOCK INDEX FELL 797 POINTS TO 207737 IN A MILD CONSOLIDATION THAT REDUCED THE GAIN FOR THE WEEK TO 31 TURNOVER WAS MODERATE IN TECHNICAL DEALINGS TO SQUARE POSITIONS AS MONTHLY OPTIONS CONTRACTS EXPIRED ON THE FUTURES EXCHANGE IN PARIS SHARE PRICES EASED IN LACKLUSTER DEALINGS AFTER A WEAK START BECAUSE OF DATA SHOWING THAT FRENCH MANUFACTURING OUTPUT FELL IN SEPTEMBER AND SIGNALING THAT FRANCE'S ECONOMY IS BUMPING ALONG THE BOTTOM MOST ECONOMISTS ARE SCALING BACK THEIR PROJECTIONS FOR FOURTHQUARTER GROWTH STILL THE DATA COULD POINT TO LOWER FRENCH INTEREST RATES WHICH WOULD BENEFIT THE STOCK MARKET AUTO SHARES GAINED SMARTLY ON A FORECAST THAT THE SECTOR IN FRANCE COULD GROW 9 NEXT YEAR IN AMSTERDAM STOCKS DECLINED ON WALL STREET'S SOFT OPENING LOWER DUTCH BOND PRICES AND NOVEMBER OPTIONS' EXPIRATION WHICH OFFSET UPWARD EFFECTS FROM A FIRMER DOLLAR IN MILAN SHARES FELL AS INVESTORS STAYED ON THE SIDELINES AHEAD OF LOCAL ELECTIONS YESTERDAY IN SEVERAL ITALIAN CITIES IN MADRID PRICES DROPPED AS LITTLE NEWS EMERGED AND THE MARKET WAS DRAGGED DOWN BY DECLINES ON OTHER EUROPEAN BOURSES IN STOCKHOLM EQUITIES SLUMPED LED DOWN BY A SHARP FALL IN THE TELECOMMUNICATIONS SECTOR THAT WAS PROMPTED BY THE SAME TREND IN THE US MARKET A DAY EARLIER IN ZURICH STOCKS ROSE MANAGING TO HOLD ON TO GAINS DESPITE LATE PROFITTAKING AS THE MARKET'S RECENT CONSOLIDATION CONTINUED IN BRUSSELS PRICES FELL ON PROFITTAKING FOLLOWING THE PREVIOUS RECORDHIGH FINISH IN SYDNEY STOCKS SLUMPED 12 PRESSURED BY THE SALE OF A LARGE BLOCK OF SHARES NERVOUSNESS ABOUT HIGHER BOND YIELDS IN AUSTRALIA AND THE US AND WHAT WAS DESCRIBED AS A NATURAL LETDOWN AFTER THE US HOUSE PASSED THE NORTH AMERICAN TRADE PACT IN HONG KONG SHARES DROPPED SHARPLY BECAUSE OF THE LINGERING EFFECT OF A MORGAN STANLEY STRATEGIST'S MARKDOWN OF THE MARKET'S PROSPECTS PRICES SEESAWED WITH BUYING BY JAPANESE AND CHINESE FUNDS COUNTERING US SELLING IN SEOUL EQUITIES RALLIED 22 TO THE YEAR'S HIGHS AS HECTIC BUYING SPREAD FROM SMALL STOCKS INTO LARGECAPITALIZATION ISSUES SHARES OF SECURITIES FIRMS WHICH HAD TRAILED THE MARKET RECENTLY STAGED A POWERFUL RALLY WHILE BIG MANUFACTURERS LOST GROUND ON AN EARLIER REPORT THAT NAFTA WOULD HURT SOUTH KOREAN EXPORTS BUT IN TAIPEI PRICES PLUNGED 21 ON PROFITTAKING SPURRED BY POLITICAL UNCERTAINTY ABOUT COMING ELECTIONS IN TAIWAN AND IN WELLINGTON STOCKS DRIFTED LOWER ON PROFITTAKING FOLLOWING A RECENT BULL RUN 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 9311220085 931122 SHORT INTEREST ON BIG BOARD HITS A RECORD FIGURE ROSE 35 IN MONTH MERCK'S TOTAL SOARED AS DISNEY'S STAYED HIGH BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE ROSE 35 ACHIEVING A RECORD HIGH OF 124 BILLION SHARES IN MIDNOVEMBER BIG BOARD SHORT INTEREST TOTALED 1235218061 SHARES UP FROM 1193909475 A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE INCREASED 18 MILLION SHARES TO 100464276 THE LATEST FIGURE REPRESENTS ABOUT 1 OF THE NEARLY 10 BILLION SHARES OUTSTANDING ON THE AMEX MERCK & CO'S SHORT INTEREST POSITION ON THE BIG BOARD SOARED 84 MILLION SHARES TO A TOTAL OF 341 MILLION SHARES MERCK'S SHORT INTEREST HAS RISEN IN RECENT MONTHS FOLLOWING ANNOUNCEMENT OF ITS PLAN COMPLETED LAST WEEK TO ACQUIRE MEDCO CONTAINMENT SERVICES INC IN A 6 BILLION STOCK DEAL HARRY STRUNK AN INVESTMENT CONSULTANT IN PALM BEACH FLA SPECULATED THAT INVESTORS COULD HAVE PROFITED BY BUYING MEDCO'S SHARES WHILE SHORTING MERCK BEFORE THE MERGER HE NOTED HOWEVER THAT UNCERTAINTY ABOUT THE GOVERNMENT'S HEALTHCARE PLAN COULD ALSO HAVE CONTRIBUTED TO MERCK'S SHORTINTEREST LEVELS SHORT INTEREST POSITIONS FOR WALT DISNEY CO AND CHRYSLER CORP REMAINED HIGH AT 197 MILLION SHARES AND 169 MILLION SHARES RESPECTIVELY ALTHOUGH CHRYSLER'S POSITION FELL 11 MILLION SHARES RJR NABISCO HOLDINGS CORP'S SHORT INTEREST ALMOST DOUBLED TO 147 MILLION SHARES FROM 75 MILLION POSSIBLY RELATED TO HIGH LEVELS OF ARBITRAGE ACCORDING TO PEOPLE WHO FOLLOW THE COMPANY WALMART STORES INC'S POSITION FELL 22 MILLION SHARES TO 138 MILLION MATTEL INC'S SHORT INTEREST LEVEL EDGED UP TO 153 MILLION SHARES FROM 144 MILLION THE COMPANY HAS PROPOSED TO ACQUIRE FISHERPRICE INC FOR 11 BILLION TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS RISING SHORT INTEREST IN THE PAST HAS BEEN CONSIDERED BULLISH BY SOME ANALYSTS BECAUSE SHORTINTEREST TRADERS WOULD BE REQUIRED TO BUY BACK LARGE QUANTITIES OF SHARES THEY HAVE BORROWED HOWEVER SHORT PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS MAY HAVE REDUCED THE EFFECTIVENESS OF THIS MEASURE OTHERS SAY THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO FELL TO 425 FROM 439 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY BIG BOARD VOLUME WAS 2905 MILLION SHARES BIG BOARD AND AMEX SHORT INTEREST POSITIONS WERE CALCULATED FOR THE MONTH INCLUDING THE 21 TRADING DAYS THROUGH NOV 5 WITH NOV 15 AS THE SETTLEMENT DATEEND THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 200000 SHARES EXISTED AT MIDNOVEMBER OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDOCTOBER SEE ACCOMPANYING TABLES WSJ NOV 22 1993 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 WSJ NOV 26 1993 9311220084 931122 CALPERS TO LINK CHIEF'S PAY TO BOTTOM LINE BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA'S PENSIONFUND LEADER DALE HANSON HAS SPENT YEARS PRODDING CHIEF EXECUTIVES TO LINK THEIR OWN PAY TO PERFORMANCE NOW HE'S GOING TO PRACTICE WHAT HE PREACHES BUT IT WON'T BE SUCH A TOUGH COMMANDMENT TO LIVE WITH MR HANSON'S BOSSES THE DIRECTORS OF THE GIANT CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM LAST WEEK APPROVED A PLAN TO INCENTIVIZE MR HANSON BEGINNING JAN 1 BUT AS A PRACTICAL MATTER CALPERS' CHIEF EXECUTIVE WON'T HAVE TO SCRATCH AND CLAW TO TO MAKE WHAT HE DID BEFORE HE GETS A 10 PAY INCREASE RIGHT OFF THE BAT TO 110000 IN BASE PAY FROM A FLAT 99800 THE BONUS WILL BE ON TOP OF THAT IT'S SOMETHING WE SAY PEOPLE SHOULD BE DOING SO MAYBE WE SHOULD BE DOING IT TOO WILLIAM CRIST PRESIDENT OF THE 12MEMBER CALPERS BOARD OF ADMINISTRATION SAYS OF THE INCENTIVE PAY SYSTEM AND WHAT ABOUT THE SALARY BOOST HE SAYS MR HANSON HADN'T RECEIVED A MERIT PAY INCREASE FOR FIVE YEARS BECAUSE OF CALIFORNIA BUDGET PROBLEMS LEAVING HIM EARNING LESS THAN SOME PEERS AT SMALLER STATE PENSION FUNDS MR HANSON'S NEW COMPENSATION PLAN WAS APPROVED 83 WEDNESDAY HE NOW JOINS MANAGERS AT JUST A HANDFUL OF PUBLIC FUNDS NATIONALLY THAT ARE RELYING ON INCENTIVEBASED PAY ALTHOUGH THE APPROACH IS COMMON AT PRIVATESECTOR MONEY MANAGEMENT FIRMS WHERE THE PAY OFTEN IS MUCH HIGHER THAN MR HANSON'S MR HANSON SAYS HE HAS LONG BEEN A BIG BELIEVER IN PAYFORPERFORMANCE INCLUDING FOR HIMSELF I'M VERY POSITIVE ABOUT IT HE SAYS TO GET HIS BONUS AS MUCH AS 20 OF BASE PAY HE'LL WORK OUT A SET OF OBJECTIVES EACH YEAR WITH THE DIRECTORS BELEAGUERED CHIEF EXECUTIVES WILL BE ELATED TO LEARN THAT MR HANSON'S GOALS WILL INCLUDE MANY THINGS BESIDES HOW AGGRESSIVELY HE ADMONISHES COMPANIES FOR POOR STOCK MARKET PERFORMANCE MR CRIST SAYS CORPORATE GOVERNANCE WOULD BE A SUBSET OF OVERALL INVESTMENT PERFORMANCE NOT A SPECIFIC OBJECTIVE MUCH MORE IMPORTANT MESSRS CRIST AND HANSON AND OTHER CALPERS OFFICIALS SAY IS HOW THE CEO IMPROVES DAYTODAY OPERATIONS THIS MIGHT SEEM A TRIVIAL MATTER FOR SOMEONE WHO TOOK PART IN THE ACTION ASSOCIATED WITH THE OUSTERS OF CEOS AT GENERAL MOTORS CORP WESTINGHOUSE ELECTRIC CORP AND SEARS ROEBUCK & CO BUT SUCH ACTIVISM IS JUST A VERY SMALL PART OF THE JOB SAYS JAKE PETROSINO A CALPERS DIRECTOR A HEFTY PORTION OF MR HANSON'S BONUS WILL DEPEND ON VERY BORING THINGS SUCH AS HOW QUICKLY APPLICATIONS ARE RECEIVED AND PROBLEMS ARE TAKEN CARE OF AND WHETHER RETIREES ARE TREATED COURTEOUSLY MR PETROSINO SAYS THE EMPHASIS APPEARS TO ADDRESS SOME OF THE CRITICISM THAT MR HANSON HIMSELF HAS DRAWN AS HE GAINED A HIGHER PROFILE SPECIFICALLY SEVERAL DIRECTORS HAVE PUBLICLY GRIPED THAT MR HANSON'S SHAREHOLDER ACTIVISM MIGHT BE COMING AT THE EXPENSE OF THE FUND BESIDES THE NEED TO IMPROVE SERVICE LEVELS THEY COMPLAINED THAT CALPERS' OWN INVESTMENT RESULTS HAD DETERIORATED IN RECENT YEARS MOSTLY FROM ILLTIMED STAKES IN REAL ESTATE AND FOREIGN STOCKS IN THE 12 MONTHS ENDED JUNE 30 CALPERS' TOTAL RETURN WAS 144 JUST ABOVE A MEDIAN OF 142 IDENTIFIED IN A SURVEY OF PUBLICEMPLOYEE PENSION FUNDS BY WILSHIRE ASSOCIATES INC CONSULTANTS BUT IN THE PAST FIVE YEARS THE ANNUAL RETURNS HAVE FALLEN JUST BELOW THE MEDIAN 117 COMPARED WITH 118 GIVEN THAT CALIFORNIA STATE EMPLOYEES WILL GET A 5 PAY INCREASE IN 1994 MR HANSON'S 10 SALARY BOOST MAY INVITE SOME CHUCKLES FROM THE CEOS WHO HAVE BEEN CHIDED BY CALPERS THE PAY BOOST EXPLAINS WHY THE VOTE ON MR HANSON'S 1994 PAY ARRANGEMENT WASN'T UNANIMOUS SAYS MR PETROSINO WHO CAST ONE OF THE THREE NO VOTES HIS NEGATIVE VOTE HAS NOTHING TO DO WITH THE INCENTIVEPAY CONCEPT BUT IT HAS EVERYTHING TO DO WITH THE INCREASE IN SALARY ADDS ANOTHER NAYSAYING DIRECTOR DAVID TIRAPELLE PUT TOGETHER THE PIECES AND THEY ADD UP TO A LARGE CHUNK OF CHANGE BUT MR CRIST DEFENDS THE PAY BOOST HE SAYS IT WAS BASED ON AN ANALYSIS SHOWING THAT MR HANSON'S PAY LAGS BEHIND THE AVERAGE SALARY OF TOP EXECUTIVES AT THE NATION'S TOP 10 PUBLIC FUNDS BY 12242 ANNUALLY MR HANSON HAS BEEN ADVOCATING PERFORMANCEBASED PAY AT CALPERS FOR SEVERAL YEARS FOR HIMSELF AND OTHERS SUCH A RADICAL REVISION OF THE PAY SYSTEM HOWEVER WASN'T POSSIBLE UNTIL LAST YEAR WHEN VOTERS APPROVED A STATEWIDE PROPOSITION ESTABLISHING THE BOARD OF ADMINISTRATION AS AN AUTONOMOUS BODY BEFORE THAT THE POLICY CHANGE WOULD HAVE BEEN A MUCH MORE CUMBERSOME PROCESS INVOLVING STATE GOVERNMENT'S INPUT CALPERS' OFFICIALS SAY USUALLY THERE'S BUREAUCRATIC RELUCTANCE TO GO TO ANY NEW SYSTEM SAYS STEPHEN NESBITT A WILSHIRE SENIOR VICE PRESIDENT WHICH HELPS EXPLAIN WHY NATIONALLY ONLY ABOUT A HALFDOZEN STATE FUNDS HAVE INCENTIVEBASED PAY ANOTHER RECENT NEWCOMER TO THE WORLD OF BONUS PAY IS THE PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM THE BONUSPAY SYSTEM FOR TOP MANAGERS WAS ADOPTED IN OCTOBER OVER THE OBJECTIONS OF THE STATE TREASURER CATHERINE BAKER KNOLL A FUND TRUSTEE WHO ARGUED THAT INCENTIVEBASED PAY WOULD ENCOURAGE PORTFOLIO MANAGERS TO TAKE BIG RISKS SHE ALSO CONTENDED THAT THERE WASN'T A DISCERNIBLE DIFFERENCE BETWEEN THE PERFORMANCE OF THE FIVE PLANS WITH INCENTIVE PAY AND THOSE WITHOUT IT IN OHIO HERBERT DYER CHIEF EXECUTIVE OFFICER OF THE STATE TEACHERS RETIREMENT SYSTEM OF OHIO SAYS HIS PLAN'S INCENTIVE SYSTEM IS A WELLRECOGNIZED AND ACCEPTED MANAGEMENT INCENTIVE TOOL ALTHOUGH HE ACKNOWLEDGES THERE'S NO QUANTIFICATION THAT IT DELIVERS BETTER RETURNS 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 9311220083 931122 SEC AND FUTURE COMMUNICATIONS NEAR SETTLEMENT OF LAWSUIT DALLAS THE SECURITIES AND EXCHANGE COMMISSION SAID IT IS MAKING PROGRESS TOWARD SETTLEMENT OF ITS SUIT AGAINST FUTURE COMMUNICATIONS INC AND ITS CHAIRMAN AND CHIEF EXECUTIVE SERGIO BOSCO IN A JOINTSTATUS REPORT FILED IN FEDERAL COURT IN DALLAS THE SEC AND THE DEFENDANTS SAID THEY ARE ENGAGED IN NEGOTIATIONS AND INTEND TO RESOLVE THE CASE PRIOR TO A TRIAL PROSPECTS FOR SETTLEMENT ARE GOOD THEY REPORTED KATHERINE ADDLEMAN AN ATTORNEY FOR THE SEC SAID THE AGENCY IS INSISTING THAT AS PART OF ANY SETTLEMENT MR BOSCO WILL BE PERMANENTLY BARRED FROM SERVING AS AN OFFICER OR DIRECTOR OF A PUBLICLY TRADED COMPANY THE BAN IS ONE OF THE PROVISIONS OF A PERMANENT INJUNCTION THE SEC IS SEEKING IN ITS LAWSUIT WHICH ALLEGES THAT THE CABLETELEVISION COMPANY AND MR BOSCO DISTRIBUTED FALSE AND MISLEADING INFORMATION TO DECEIVE INVESTORS AND FRAUDULENTLY INFLATED THE PRICE OF THE COMPANY'S STOCK THE SUIT ALSO SEEKS UNSPECIFIED MONETARY PENALTIES AND THE RETURN OF ANY PROFIT MR BOSCO MADE THROUGH ALLEGEDLY ILLEGAL TRADING IN THE COMPANY'S STOCK AN ATTORNEY FOR MR BOSCO STEPHEN CASS WEILAND SAID I THINK A PERMANENT BAR IS A PRETTY HEFTY BURDEN TO IMPOSE ON HIM HE SAID HE HOPES THE CASE CAN BE RESOLVED IN THE NEXT MONTH AND THAT MR BOSCO WOULDN'T ADMIT BREAKING ANY LAWS AS PART OF A SETTLEMENT EARLIER THIS MONTH FUTURE COMMUNICATIONS FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN FEDERAL COURT IN DALLAS 9311220082 931122 TECHNOLOGY BRIEF SPECTRUM HOLOBYTE INC INTERACTIVE EDUCATIONAL LINE FROM AVTEX TO BE MARKETED ENTERTAINMENT SOFTWARE COMPANY SPECTRUM HOLOBYTE INC ALAMEDA CALIF SAID IT LAUNCHED ITS FIRST VENTURE INTO INTERACTIVE EDUCATIONAL SOFTWARE SPECTRUM SAID IT WILL MARKET A LINE OF SOFTWARE PRODUCED BY AVTEX INTERACTIVE MEDIA A UNIT OF AVTEX RESEARCH CORP CAMPBELL CALIF THE FIRST TWO TITLES ANIMAL TALES A SERIES OF ORIGINAL STORIES AND THE BIG BUG ALPHABET ARE SCHEDULED FOR RELEASE IN DECEMBER SPECTRUM IS IN THE PROCESS OF ACQUIRING MICROPROSE INC A HUNT VALLEY MD MAKER OF ENTERTAINMENT SOFTWARE 9311220081 931122 INTERNATIONAL AIRLINES' BID IN EUROPE TO UNITE FAILS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE DREAM OF THE FIRST TRULY PANEUROPEAN AIRLINE FAILED THIS WEEKEND KLM ROYAL DUTCH AIRLINES SWISSAIR SCANDINAVIAN AIRLINES SYSTEMS AND AUSTRIAN AIRLINES SAID THAT THEY ABANDONED PLANS TO MERGE THEIR COMPANIES INTO A SINGLE CARRIER THE DECISION CAME FOLLOWING A LASTDITCH ROUND OF TALKS YESTERDAY MORNING IN AMSTERDAM WHERE THE PRESIDENTS AND CHAIRMEN OF ALL FOUR AIRLINES SOUGHT TO SAVE A DEAL THEY SPENT MORE THAN EIGHT MONTHS NEGOTIATING THE AIRLINES ISSUED A TERSE JOINT STATEMENT SAYING THEY HAD TERMINATED THE TALKS BECAUSE THE AIRLINES CONTINUE TO HOLD FUNDAMENTALLY DIFFERENT VIEWS ON A US PARTNERSHIP IN FACT PEOPLE FAMILIAR WITH THE TALKS SAY THE IMPASSE CAME WHEN KLM REJECTED A DECISION THAT SWISSAIR ALLY DELTA AIR LINES SHOULD BE THE PARTNER FOR THE MERGED AIRLINE KLM PREFERRED ITS OWN US PARTNER WINGS HOLDINGS CORP'S NORTHWEST AIRLINES THE COLLAPSE OF THE MERGER PLAN CODENAMED PROJECT ALCAZAR WILL CREATE INCREASING UNCERTAINTY IN EUROPEAN AVIATION IT ALSO PLACES IN DOUBT THE FUTURE OF THE FOUR AIRLINES ALL OF WHOM MAY BE TOO SMALL TO SURVIVE IN EUROPE'S COMPETITIVE AVIATION INDUSTRY THE END OF ALCAZAR IS EXPECTED TO SEND EUROPEAN AIRLINES ON A RENEWED SCRAMBLE FOR ALLIANCES SWISSAIR PRESIDENT OTTO LOEPFE SAID IN A STATEMENT THAT GOING IT ALONE WITHOUT ANY PARTNERS HAS NEVER BEEN AN OPTION IS NOT AN OPTION NOW AND WILL NOT BE AN OPTION IN THE FUTURE SAS KLM AND AUSTRIAN AIR OFFICIALS EXPRESSED SIMILAR SENTIMENTS INDUSTRY OFFICIALS AND ANALYSTS BELIEVE THERE ARE FAR TOO MANY AIRLINES AT LEAST 15 MAJOR AIRLINES FLY THE SKIES OF WESTERN EUROPE MANY OF THEM HELD ALOFT BY STATE SUBSIDIES AND LINGERING PROTECTIONISM THAT COMPARES WITH FEWER THAN 10 MAJOR AIRLINES IN THE MUCH LARGER US MARKET THE FOURWAY MERGER TALKS WERE THE FIRST REAL ATTEMPT AT WHAT MOST PEOPLE SEE AS AN INEVITABLE CONSOLIDATION A COMBINATION OF GRADUAL DEREGULATION EMPTY GOVERNMENT COFFERS AND THE NEED FOR GREATER EFFICIENCY IS WIDELY EXPECTED TO FORCE SOME OF EUROPE'S FLAG CARRIERS INTO EITHER BANKRUPTCY OR MERGERS BUT THE FAILURE OF ALCAZAR WILL BE WELCOMED IN SOME QUARTERS LARGE AIRLINES SUCH AS BRITISH AIRWAYS AIR FRANCE AND LUFTHANSA WOULD HAVE BEEN DWARFED BY A MERGER OF THE FOUR MIDSIZE CARRIERS ALSO LIKELY TO WELCOME THE COLLAPSE OF THE TALKS ARE UNIONS IN AUSTRIA AND DENMARK THAT FEARED A MERGER WOULD LEAD TO SIGNIFICANT JOB LOSSES AS FOR THE ALACAZAR MEMBERS' SEARCH FOR NEW PARTNERS ONE POSSIBILITY WOULD BE FOR SWISSAIR SAS AND AUSTRIAN AIR TO JOIN FORCES WITHOUT THEIR ERSTWHILE DUTCH PARTNERS THE THREE AIRLINES ALREADY HAVE STRONG MARKETING LINKS A PARTNERSHIP THEY CALL THE EUROPEAN QUALITY ALLIANCE BUT SOME ANALYSTS SAY THAT GROUPING NEEDS A LARGER PRESENCE IN THE EUROPEAN COMMUNITY THAN THE ONETHIRD OF SAS CONTROLLED BY THE DANISH STATE AND INVESTORS THE OTHER TWOTHIRDS OF SAS IS SPLIT EVENLY BETWEEN SWEDEN AND NORWAY TWO NONEC COUNTRIES THERE'S A RACE FOR DOMINANCE SAID ALASTAIR T PUGH AN ADVISER TO GOLDMAN SACHS INTERNATIONAL ON AVIATION ISSUES TO COMPETE YOU HAVE TO BE FAIRLY BIG IF CONSOLIDATION DOESN'T WORK IN THE ALCAZAR GROUPING THEN THOSE AIRLINES WILL BE LOOKING FOR OTHER PARTNERS THE FOUR AIRLINES LAUNCHED PROJECT ALCAZAR IN APRIL AFTER SEVERAL MONTHS OF EXPLORATORY TALKS BASED ON STUDIES BY 16 WORKING GROUPS THE CARRIERS CALCULATED THEY COULD SAVE ABOUT ONE BILLION ECUS 112 BILLION A YEAR GIVING HUGE INCENTIVES TO COMPLETE THE MERGER EQUALLY IMPRESSIVE THE WORKING GROUPS MANAGED TO RESOLVE SUCH TRICKY QUESTIONS AS HOW TO STRUCTURE OWNERSHIP SWISSAIR SAS AND KLM WERE EACH TO RECEIVE 30 WHILE THE SMALLER AUSTRIAN CARRIER WOULD HAVE A 10 STAKE THEY HAD EVEN PICKED THE SITE FOR THE MERGED AIRLINE'S HEADQUARTERS OPTING FOR AMSTERDAM BECAUSE OF ITS LOCATION WITHIN THE EC SOURCES SAY ALL THAT REMAINED WAS TO CHOOSE A US PARTNER SAS'S ALLY IN THE US CONTINENTAL AIRLINES WAS DISMISSED EARLY ON PARTLY BECAUSE OF ITS WEAKER POSITION IN THE US MARKET THAT LEFT EITHER ATLANTABASED DELTA IN WHICH SWISSAIR HAS A 5 CROSSHOLDING OR TROUBLED NORTHWEST IN WHICH KLM HAS A 20 STAKE AUSTRIAN AIR LACKS A US PARTNER SOURCES CLOSE TO THE TALKS SAID THE US PARTNER REPRESENTED ONLY 5 OF THE PROJECTED ONE BILLION ECU SAVINGS FROM A MERGER UNTIL A WEEK AGO OFFICIALS OF THE FOUR AIRLINES WERE SAYING THEY FELT THE POTENTIAL OF SAVING 950 MILLION ECUS WOULDN'T BE DERAILED BY PROBLEMS REPRESENTING ONLY 50 MILLION ECUS BUT SUCH SENTIMENTS PROVED MISGUIDED 9311220080 931122 LETTERS TO THE EDITOR KNOX AND THE NRA SOME QUICK DRAWS SILLY ME HERE I THOUGHT THAT THE MOST CLEAR AND PRESENT DANGER TO MY HEALTH SECURITY AND PEACE OF MIND WAS MY WELLARMED FELLOW CITIZENS YOU KNOW THOSE FOLKS WHO'VE SPREAD SUCH GANGLAND PHENOMENA AS DRIVEBY SHOOTINGS CARJACKINGS AND TOURIST MURDERS TO EVERY MAJOR CITY IN THIS LAND NOW THANKS TO NEAL KNOX AND HIS NRA TRUE BELIEVER PAGE ONE OCT 26 I UNDERSTAND THAT WHAT I SHOULD REALLY WORRY ABOUT IS A TAKEOVER OF THE US GOVERNMENT BY NAZIS AND THAT THE WAY TO COUNTER THIS POSSIBILITY IS TO BUY MYSELF A GUN THANKS NEAL FOR SETTING ME STRAIGHT NEAL KNOX OF THE NRA HAS IT JUST RIGHT LIKE MANY OTHER LONGTIME MEMBERS I BELIEVED THAT WE WERE GETTING TOO FRIENDLY WITH THE ENEMY I SENSE IN MR KNOX A KINDRED SPIRIT AND BELIEVE THAT HIS VIEWS ARE LARGELY RESPONSIBLE FOR THE RECENT MEMBERSHIP SURGE WHEN ASKED ABOUT MY POSITION ON GUN OWNERSHIP MY STANDARD ANSWER IS THAT EVERYTHING SHOULD BE LEGAL FOR PRIVATE OWNERSHIP EXCEPT FOR NUCLEAR WEAPONS AND POISON GAS THIS IS HYPERBOLE BUT NOT BY MUCH 9311220079 931122 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 7/8 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 307 30 TO 33 DAYS 306 34 TO 59 DAYS 332 60 TO 239 DAYS 342 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 343 60 DAYS 341 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 271 TWO MONTHS 274 THREE MONTHS 285 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 313 ONE MONTH 335 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 330 60 DAYS 327 90 DAYS 327 120 DAYS 327 150 DAYS 329 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/16 ONE MONTH 3 1/2 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 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 15 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 326 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 723 60 DAYS 731 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 716 60 DAYS 726 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 9311220078 931122 LETTERS TO THE EDITOR BIGGEST FISH WASN'T RED IN 1930S CULTURAL POND IN HIS REVIEW OF DIANA TRILLING'S THE BEGINNING OF THE JOURNEY LEISURE & ARTS OCT 27 PROF JAMES W TUTTLETON RATHER UNCRITICALLY ACCEPTS MRS TRILLING'S VIEW THAT THE COMMUNIST PARTY DOMINATED AMERICAN CULTURAL LIFE IN THE 1930S IN THAT PERIOD MANY VERY POSSIBLY A MAJORITY OF THE NATION'S ACADEMICS ARTISTS FILM AND THEATER CREATORS JOURNALISTS AND WRITERS SUPPORTED FRANKLIN ROOSEVELT'S OFTEN CONTRADICTORY PROJECTS OF SOCIAL REFORM THE COMMUNIST PARTY WAS A LARGE PRESENCE OF COURSE BUT WAS AT PAINS TO DEPICT ITSELF AS DESCENDED FROM AMERICAN POPULISM AND PROGRESSIVISM THE NATION'S CULTURAL ELITES WERE CERTAINLY NOT SUBJECT TO THE DISCIPLINE OF THE PARTY ITS MANIPULATIVENESS WAS EFFECTIVE ONLY FOR THE PERIOD IN WHICH IT FUNCTIONED AS A COMPONENT OF THE NEW DEAL COALITION A VERY INFLUENTIAL GROUP OF AMERICAN INTELLECTUALS BROKE WITH THE COMMUNISTS IN THE EARLY '30S AND GATHERED STRENGTH THROUGHOUT THE DECADE HOW ELSE EXPLAIN JOHN DEWEY'S INTERNATIONALLY EFFECTIVE DEFENSE OF TROTSKY OR THE ASCENT OF THE TRILLINGS IN ANY EVENT IT IS ABSURD OF MRS TRILLING TO COMPLAIN THAT HER HUSBAND FACED EVICTION FROM COLUMBIA IN 1936 BECAUSE HE WAS INTER ALIA A MARXIST AND THAT SIMULTANEOUSLY THE COMMUNISTS WERE OMNIPOTENT PROF TUTTLETON HIMSELF SEEMS SERIOUSLY VEXED BY PARTISAN REVIEW'S CRITICISM OF THE CAPITALISM OF THE '30S PERHAPS HE SHOULD REREAD ROOSEVELT'S 1936 INAUGURAL ADDRESS OR HIS ELECTORAL SPEECHES OF 1940 IT IS ODD TO CRITICIZE THE PARTISAN REVIEW OF THE '30S FOR NOT HAVING ANTICIPATED NEOCONSERVATISM FINALLY PROF TUTTLETON AT ONE POINT DESCRIBES MRS TRILLING AS DISCREET THAT IS NOT A TERM MANY READERS WOULD APPLY TO HER VERY INTERESTING BOOK 9311220076 931122 ABREAST OF THE MARKET INVESTORS OVERSEAS FACE DILEMMA SIT TIGHT OR FLEE BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ALL THOSE GREAT GAINS IN OVERSEAS STOCK MARKETS ARE POSING A THORNY QUESTION FOR INVESTORS AS THE YEAR DRAWS TO A CLOSE TAKE THE PROFITS OR STAY FULLY INVESTED IN THE HOPES OF A REPEAT PERFORMANCE NEXT YEAR LAST WEEK SOME US AND OTHER INVESTORS ANSWERED THE QUESTION AT LEAST AS FAR AS THE HIGHFLYING HONG KONG STOCK MARKET IS CONCERNED THEY BEGAN DUMPING SOME OF THEIR HOLDINGS ON FEARS THAT STOCKS IN HONG KONG HAD RISEN TOO FAR TOO FAST THAT GOT EVERYONE THINKING ABOUT WHAT SHOULD BE DONE IN OTHER FOREIGN MARKETS ALMOST ALL OF WHICH HAVE SIGNIFICANTLY BETTERED THE US MARKET'S 596 RETURN THIS YEAR FOR EXAMPLE ASIAN AND PACIFIC BASIN STOCK MARKETS ARE UP A HEFTY 42 MEASURED IN DOLLARS ACCORDING TO THE DOW JONES WORLD STOCK INDEX EVEN THE SPUTTERING JAPANESE STOCK MARKET HAS RISEN 39 LARGELY BECAUSE OF A STRONGER YEN DECIDING WHETHER TO TAKE PROFITS ISN'T EASY THE QUESTION IS IF YOU TAKE PROFITS WHAT DO YOU DO WITH THE MONEY SAYS NICHOLAS STEVENSON A EUROPEAN EQUITY STRATEGIST AT SG WARBURG & CO IN LONDON HE AND OTHERS POINT OUT THAT MANY STOCK MARKETS AROUND THE WORLD ARE TRADING AT VERY HIGH PRICES RELATIVE TO EARNINGS FORECASTS AT THE SAME TIME GLOBAL BOND FUNDS A LOGICAL ALTERNATIVE TO STOCK INVESTMENTS ALREADY ARE UP 17 TO 18 SO FAR THIS YEAR ON THE STRENGTH OF ANTICIPATED REDUCTIONS IN INTEREST RATES NONETHELESS DAVID ROCHE GLOBAL STRATEGIST AT MORGAN STANLEY INTERNATIONAL IN LONDON IS TAKING PROFITS ESPECIALLY IN EUROPE SO IS ROBERT HABER A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON IN THE PAST FEW WEEKS MR ROCHE HAS REDUCED THE EQUITY WEIGHTING OF HIS GLOBAL MIXEDASSET PORTFOLIO BY 16 PERCENTAGE POINTS THE LION'S SHARE OF THE REDUCTION COMING FROM CONTINENTAL EUROPEAN STOCKS IN ADDITION HE HAS CLOSED OUT HIS STOCK POSITIONS IN AUSTRALIA AND NEW ZEALAND AND PARED HIS HONG KONG PORTFOLIO HE IS PUTTING SOME OF THE MONEY INTO CASH AND THE REST INTO TWOTOFIVEYEAR SWEDISH SPANISH AND FRENCH SECURITIES AND JAPANESE BONDS MR ROCHE BELIEVES THERE IS A 60 CHANCE THAT RISING US INTEREST RATES AND A STRONGER DOLLAR WILL INITIALLY STEM THE GUSHING FLOW OF US INVESTMENT TO FOREIGN STOCK MARKETS AND THAT AFTER THAT HAPPENS THE LOW US SAVINGS RATE COULD MAKE US ECONOMIC GROWTH UNSUSTAINABLE THAT MEANS EQUITIES ARE GOING TO UNDERPERFORM CASH AND LONG BONDS IN MANY MARKETS AROUND THE WORLD OVER THE NEXT FEW MONTHS HE SAYS LIKE MR ROCHE FIDELITY'S MR HABER WHO MANAGES 6 BILLION IN GLOBAL STOCK AND BOND MARKETS IS ALSO LIGHTENING UP ON EUROPEAN SHARES EUROPE'S STOCK MARKETS NEED LOWER RATES BECAUSE THE ECONOMIES AND CORPORATE PROFITS THERE ARE TERRIBLE HE SAYS IN ALL THESE COUNTRIES YOU ARE PAYING HIGH PRICEEARNINGS RATIOS ON THE HOPE THAT LOWER RATES ARE FORTHCOMING AND THAT THEY WILL LEAD TO BETTER CORPORATE PROFITS THERE ARE A LOT OF IFS' IN THERE NONETHELESS HE'S PARTICULARLY ENANMOURED OF FOUR EUROPEAN STOCKS DUTCH RETAILER MACINTOSH CONFECTIONERY WORKS FRENCH PROPRIETARY ASSET MANAGER AND BROKER CIE PARISIENNE DE REESCOMPTE AND TWO NORWEGIAN COMPANIES CONGLOMERATE ORKLA AND AGRICULTURAL IMPLEMENTS COMPANY KVERNELAND EUROPE'S STOCK MARKETS AREN'T MR HABER'S ONLY CONCERN HE ALSO FINDS STOCK MARKETS IN MALAYSIA SINGAPORE AND THAILAND UP 66 43 AND 85 RESPECTIVELY TOO EXPENSIVE WITH THE MONEY FROM HIS FOREIGN STOCK SALES HE HAS BEEN BUYING US DEEPER CYCLICALS LIKE STEEL MAKER LTV CORP AND TEMPLEINLAND A PAPER PULP AND WOOD COMPANY HE IS ALSO BUYING GOLD NOTING RECENT LARGE INCREASES IN BEEF AND CORN PRICES MR HABER SEES OTHER COMMODITY PRICES RISING ALONG WITH THE US ECONOMY NOTING THAT OVER THE PAST FEW WEEKS US MONEY MANAGERS HAVE ALREADY TAKEN SOME PROFITS IN FRENCH AND ITALIAN SHARES MR STEVENSON OF SG WARBURG WORRIES THAT DISAPPOINTING EARNINGS GROWTH COULD DRIVE EUROPE'S STOCK MARKETS LOWER EARLY NEXT YEAR BUYERS OF EUROPEAN STOCKS HE SAYS FACE A CONUNDRUM ON THE ONE HAND STRONGER US ECONOMIC GROWTH IS CRITICAL TO JUSTIFYING INVESTOR ASSUMPTIONS THAT EUROPEAN CORPORATE EARNINGS WILL GROW 30 TO 40 NEXT YEAR YET STRONGER ECONOMIC GROWTH USUALLY SPELLS HIGHER INTEREST RATES AND HIGHER US RATES COULD DRIVE THE US STOCK MARKET DOWN AND OTHERS ALONG WITH IT RISING US RATES COULD ALSO LEAD TO A RISING DOLLAR WHICH MR STEVENSON SAYS WILL PROMPT US INVESTORS TO TAKE PROFITS AND BRING THEIR MONEY HOME AND THE AMERICAN WALL OF MONEY STARTS TO EVAPORATE WITH SIMILAR CONCERNS MR ROCHE OF MORGAN STANLEY CREDITS THE RECORD SUMS THAT AMERICANS HAVE INVESTED ABROAD WITH BEING THE DRIVING FORCE BEHIND WORLD STOCK MARKETS THIS YEAR ANY REVERSAL OF FLOWS INTO US MUTUAL FUNDS OR ANY CHANGE IN THE INTERNATIONAL DIVERSIFICATION STRATEGIES OF US INSTITUTIIONAL INVESTORS COULD PROVE FATAL TO NONUS STOCK MARKETS HE SAYS THE GOLDEN SCENARIO IS THAT US INFLATION TURNS OUT LESS THAN EVERYBODY EXPECTS THAT EUROPEANS CAN CONTINUE LOWERING RATES AND THAT EUROPEAN PROFITS PICK UP ALONG WITH A STRONGER DOLLAR SAYS MR STEVENSON BUT HE ADDS FRANKLY I THINK THAT'S A LITTLE BIT TOO GOOD TO BE TRUE UNLIKE MESSRS STEVENSON HABER AND ROCHE FELIX ZULAUF HEAD OF ZULAUF ASSET MANAGEMENT AG IN ZURICH IS BULLISH ON EUROPE MANY OF THE CONTINENTAL MARKETS HAVE BASICALLY BEEN SIDEWAYS AFFAIRS FOR THE LAST SIX OR SEVEN YEARS AND HAVE ONLY JUST BROKEN OUT ON THE TOP SIDE THIS YEAR AND THE BIG LIQUIDITY CREATIONS IN EUROPE ARE STILL AHEAD OF US HE SAYS THE FINANCIAL MANIA IN EUROPE HAS A LOT FURTHER TO GO MANIAS ALWAYS GO FURTHER THAN EVERYBODY WHO THINKS RATIONALLY CAN BELIEVE OBSERVING THAT EQUITY BULL MARKETS OFTEN EXPERIENCE SPECTACULAR RISES DURING THEIR LAST SIX MONTHS OR SO MR ZULAUF PREDICTS SUCH SKYROCKETING SHARE PRICES SHOULD OCCUR SOMETIME IN THE NEXT TWO YEARS I FEEL PRETTY CERTAIN WE WILL OVERDO IT LIKE THE JAPANESE DID IN THE LATE 1980S SAYS THE SWISS MONEY MANAGER RECALLING HOW THE TOKYO STOCK MARKET SOARED IN 1988 AND 1989 BEFORE IT BEGAN CRASHING EARLY IN 1990 BUT WARY OF A STRENGTHENING DOLLAR THAT COULD ERODE THE VALUE OF AN AMERICAN'S OVERSEAS SECURITIES PORTFOLIO HE ADVISES THAT US INVESTORS HEDGE THEIR CURRENCY RISK MR ZULAUF'S FEELINGS ABOUT SOUTHEAST ASIA'S HIGHFLYING STOCK MARKETS ARE SIMILAR TO THOSE ABOUT EUROPE BUT HE BELIEVES THEIR BLOWOUTS WILL OCCUR EARLIER THAN EUROPE'S ON A TRADING BASIS MOST MARKETS ARE OVERHEATED AND A PAUSE WOULD REFRESH HE SAYS ADDING THAT ANY SUCH PAUSE WON'T BE END OF THE BIG PARTY A BURST OF BUYING TIED TO OPTIONS EXPIRATIONS PUSHED THE DOW JONES INDUSTRIAL AVERAGE HIGHER BUT OTHER STOCK MARKET INDEXES POSTED LOSSES STANDARD & POOR'S 500STOCK INDEX FELL 102 TO 46260 AND THE NASDAQ COMPOSITE INDEX DROPPED 278 TO 75156 SOME SPECIALIZED STOCK MARKET INDEXES ALSO LOST GROUND CONTINUING ITS PATTERN OF WEAKNESS THE DOW JONES UTILITY AVERAGE FELL 165 TO 22350 THE DOW JONES TRANSPORTATION AVERAGE SLIPPED 577 TO 172729 VOLUME ON THE NEW YORK STOCK EXCHANGE DROPPED TO 3009 MILLION SHARES FROM 3104 MILLION THURSDAY DECLINING ISSUES TOPPED ADVANCERS 1333 TO 795 FOR THE WEEK THE INDUSTRIAL AVERAGE ROSE 03 BUT THE S&P EASED 06 AND THE NASDAQ COMPOSITE PLUMMETED 36 THE DECLINES CAME AS INTEREST RATES ROSE WITH THE YIELD ON THE TREASURY'S 30YEAR BOND CLIMBING TO 633 FROM 624 TIPHOOK PLC GAINED 1 3/8 TO 3 AN EXCLUSIVE LETTER OF INTENT TO BUY TIPHOOK'S CONTAINER UNIT WAS SIGNED BY TRANSAMERICA MERCK ADDED 1/2 TO 35 1/8 MERRILL LYNCH ANALYST RICHARD VIETOR RAISED HIS LONGTERM INVESTMENT RATING ON THE COMPANY TO ABOVE AVERAGE FROM NEUTRAL DIGI INTERNATIONAL SLID 1 3/4 TO 19 1/4 ON NASDAQ THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 23 CENTS A SHARE THURSDAY COMPARED WITH 26 CENTS A SHARE IN THE YEARAGO PERIOD THIS QUARTER'S PROFIT WAS WEIGHED DOWN BY A FOURCENTASHARE CHARGE FOR THE SETTLEMENT OF INTERNAL REVENUE SERVICE EXAMINATIONS AUTODESK JUMPED 2 1/2 TO 43 1/2 ON NASDAQ THE SOFTWARE CONCERN REPORTED THIRDQUARTER PROFIT OF 60 CENTS A SHARE UP FROM 50 CENTS A YEAR AGO DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9311220075 931122 NTT'S PROFIT DECLINED 18 IN FISCAL 1ST HALF SALES SLIPPED 17 ESTIMATE OF EARNINGS FOR YEAR IS REVISED DOWNWARD SPECIAL TO THE WALL STREET JOURNAL TOKYO NIPPON TELEGRAPH & TELEPHONE CORP JAPAN'S DOMESTIC TELECOMMUNICATIONS GIANT REPORTED THAT UNCONSOLIDATED PRETAX PROFIT DECLINED 18 DURING THE FISCAL FIRST HALF ENDED SEPT 30 FROM THE YEAREARLIER PERIOD PRETAX PROFIT SLIPPED TO 10394 BILLION YEN 9691 MILLION FROM 10590 BILLION YEN NET INCOME MEANWHILE FELL A SHARPER 10 TO 4094 BILLION YEN FROM 4560 BILLION YEN SALES SLIPPED 17 TO 2912 TRILLION YEN FROM 2963 TRILLION YEN NTT SAID COMPETITION IN JAPAN'S MARKET HAS RECENTLY BECOME HARSHER NTT CUT PRICES OCT 19 AND THE COMPANY SAID THAT ACTION WILL REDUCE FULLYEAR REVENUE BY 110 BILLION YEN NTT ALSO REVISED DOWNWARD ITS FORECASTS FOR UNCONSOLIDATED EARNINGS IN THE FULL FISCAL YEAR ENDING MARCH 31 CUTTING ITS OUTLOOK BY 29 THE COMPANY NOW EXPECTS PRETAX PROFIT FOR THE FULL YEAR OF 106 BILLION YEN COMPARED WITH PREVIOUS EXPECTATIONS FOR PROFIT OF 149 BILLION YEN PROFIT OF 106 BILLION YEN WOULD BE DOWN 57 FROM THE PREVIOUS YEAR'S RESULTS DURING THE MOST RECENT HALF NTT'S TELEPHONESERVICE REVENUE FELL 28 TO 2347 TRILLION YEN WHICH ACCOUNTS FOR 79 OF OVERALL SALES AN NTT OFFICIAL SAID THE COMPANY NEEDS TO CUT COSTS SO THAT IT CAN IN TURN LOWER ITS PRICES AND KEEP UP WITH EXPANDING COMPETITION NTT SAW AN INCREASE IN DEMAND FOLLOWING ITS CUT OCT 19 IN CHARGES FOR INTERCITY TELEPHONE SERVICES BUT ONLY UNTIL NOV 4 WHEN ITS RIVALS REDUCED THEIR CHARGES BELOW NTT'S THE OFFICIAL SAID NOW FOR EXAMPLE NTT'S SERVICE COSTS 10 YEN MORE THAN ITS RIVALS' FOR 100 KILOMETERDISTANCE SERVICE FOR EACH THREE MINUTES DURING THE HALF NTT SAVED 32 BILLION YEN BY A SMALLER WAGE INCREASE THAN THE YEAR BEFORE THE OFFICIAL SAID MEANWHILE 4080 WORKERS HAVE LINED UP TO ACCEPT A VOLUNTARY EARLYRETIREMENT PLAN BY DECEMBER AND THE COMPANY HOPES TO CUT A TOTAL 10000 WORKERS UNDER THIS PROGRAM BY THE END OF NEXT YEAR THE OFFICIAL SAID NTT'S RATIONALIZATION PLAN CALLS FOR CUTTING 30000 WORKERS IN THREE YEARS THROUGH REDUCING NEW HIRING TRANSFERRING STAFF TO AFFILIATES AS WELL AS VOLUNTARY RETIREMENT THE PAYMENTS OF RETIREMENT BONUSES TO THE 4080 RETIREES WILL CAUSE 190 BILLION YEN OF EXTRAORDINARY LOSSES THIS FISCAL YEAR THE OFFICIAL SAID FRIDAY THE NTT OFFICIAL REITERATED THE COMPANY'S CALL TO THE GOVERNMENT TO REVIEW PRICING OF LOCAL TELEPHONE SERVICE AND OPERATOR DIRECTORYASSISTANCE SERVICE NTT IN THE PAST WAS ABLE TO OFFSET THESE MONEYLOSING OPERATIONS BY PROFITABLE INTERCITY TELEPHONE SERVICES BUT WITH PROFIT IN THE INTERCITY SERVICE FALLING BECAUSE OF PRICE CUTS NTT HAS TO RAISE LOCAL TELEPHONE SERVICE CHARGES INCLUDING BASIC AND CALL RATES TO JUSTIFIABLE LEVELS TO STAY PROFITABLE HE SAID WITHOUT INCREASES IN LOCAL SERVICE AND DIRECTORY SERVICE CHARGES NTT'S EARNINGS WILL BE CONSIDERABLY SEVERE THE NEXT FISCAL YEAR THE OFFICIAL SAID 9311220074 931122 BUSINESS BRIEF GOODMAN FIELDER LTD CHAIRMAN SEES PROFIT GROWTH OUTPACING LAST YEAR'S RATE GOODMAN FIELDER LTD AN AUSTRALIAN FOOD COMPANY SAID ITS RATE OF PROFIT GROWTH FOR THE CURRENT FISCAL YEAR WILL BE STRONGER THAN LAST YEAR'S CHAIRMAN JOHN STUDDY TOLD SHAREHOLDERS AT THE COMPANY'S GENERAL MEETING THAT SALES AND PROFIT FOR THE FIRST FOUR MONTHS OF THE FISCAL YEAR THAT ENDS JUNE 30 1994 ARE AHEAD OF YEAREARLIER FIGURES AND THAT EXPORTS HAVE ALSO INCREASED GOODMAN FIELDER REPORTED PROFIT AFTER TAX FOR ITS MOST RECENT FULL FISCAL YEAR OF 182 MILLION AUSTRALIAN DOLLARS US1204 MILLION A FIGURE THAT INCLUDED A ONETIME PRETAX GAIN OF A1094 MILLION RELATED TO DIVESTMENT OF ASSETS THE ECONOMIES OF MANY OF THE COUNTRIES IN WHICH WE OPERATE REMAIN CONSTRAINED MR STUDDY SAID HOWEVER DESPITE ADVERSE ECONOMIC CONDITIONS WE BELIEVE BASED ON THE RESULTS SO FAR THAT OUR RATE OF PROFIT GROWTH WILL BE STRONGER THAN LAST YEAR 9311220073 931122 QVC INTENSIFIES PRESSURE ON PARAMOUNT AS EXPIRATION OF VIACOM OFFER NEARS BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL THE RIVAL BIDDERS FOR PARAMOUNT COMMUNICATIONS INC ENGAGED IN LASTMINUTE JOCKEYING BEFORE TONIGHT'S EXPIRATION OF A 94 BILLION OFFER BY VIACOM INC BUT COURT PROCEEDINGS ARE LIKELY TO DELAY CONCLUSION OF THE 10WEEK TAKEOVER BATTLE BY SEVERAL DAYS OR EVEN WEEKS QVC NETWORK INC ON SATURDAY PUT PRESSURE ON PARAMOUNT'S BOARD TO CONSIDER ITS HIGHER 107 BILLION OFFER BY ANNOUNCING THAT IT HAD OBTAINED BANK FINANCING THE ANNOUNCEMENT PROMPTED PARAMOUNT TO CONSIDER HOLDING A BOARD MEETING TODAY THAT COULD AUTHORIZE TALKS WITH QVC AT THE SAME TIME PARAMOUNT ADVISERS AND DIRECTORS SCRAMBLED OVER THE WEEKEND TO DELIVER INFORMATION TO DELAWARE CHANCERY COURT JUDGE JACK JACOBS DESCRIBING WHY THE PARAMOUNT BOARD REJECTED QVC'S OFFER NOV 15 WITH VIACOM'S OFFER SCHEDULED TO EXPIRE AT MIDNIGHT TONIGHT JUDGE JACOBS WAS GETTING INFORMATION ON THE PARAMOUNT BOARD'S ACTIONS INCLUDING DEPOSITIONS FROM THREE DIRECTORS AND ONE OR MORE ADVISERS LATE YESTERDAY JUDGE JACOBS IS CONSIDERING A QVC REQUEST TO BLOCK VIACOM FROM COMPLETING ITS OFFER TONIGHT PARAMOUNT YESTERDAY POSTPONED A DECISION ON WHETHER TO HOLD THE BOARD MEETING UNTIL AFTER HEARING WHAT JUDGE JACOBS HAS TO SAY AT A 930 AM CONFERENCE CALL TODAY HOLDING TALKS WITH QVC AT THIS LATE HOUR COULD BE AIMED AT CONVINCING THE COURT PARAMOUNT DIRECTORS ARE EXERCISING DUE CARE BEFORE THEY DROP PARAMOUNT'S ANTITAKEOVER DEFENSES IN ORDER TO ALLOW VIACOM TO COMPLETE ITS OFFER PEOPLE INVOLVED IN THE SITUATION ARE BETTING THAT THE TIME REQUIRED FOR THE JUDGE TO MAKE HIS DECISION PLUS THE FACT THAT THE LOSING SIDE WILL CERTAINLY APPEAL MEANS THAT THE CONCLUSION OF THE BIDDING WAR MAY BE DEFERRED UNTIL LATER THIS WEEK AND MOST LIKELY PAST THE THANKSGIVING HOLIDAY PERIOD BEGINNING THURSDAY QVC THE CABLESHOPPING CHANNEL RUN BY BARRY DILLER HAD ALREADY OBTAINED A BANKFINANCING COMMITMENT FOR ITS UNSOLICITED 80ASHARE CASHANDSTOCK OFFER FIRST MADE SEPT 20 BUT UNTIL SATURDAY IT HADN'T OBTAINED A BANKFINANCING COMMITMENT FOR ITS CURRENT HOSTILE TENDER OFFER OF 90 A SHARE FOR 51 OF PARAMOUNT STOCK PLUS SECURITIES WORTH 8857 A SHARE FOR THE REMAINING 49 PARAMOUNT DIRECTORS CITED THE LACK OF SUCH FINANCING AND OTHER CONTINGENCIES IN THE QVC BID AS REASON TO REJECT THE BID EVEN THOUGH IT IS 13 BILLION HIGHER THE QVC BID IS CURRENTLY WORTH 8930 A SHARE COMPARED WITH 7814 FOR VIACOM ONE OF THE BIGGEST QUESTIONS SURROUNDING THE DELAWARE COURTS' DELIBERATIONS IS WHETHER THE CHANCERY COURT OR THE COURT OF APPEALS WILL ATTEMPT TO PRESERVE A FOURDAY TIMING ADVANTAGE CURRENTLY HELD BY VIACOM WHICH FORMALLY LAUNCHED ITS OFFER BEFORE QVC THAT TIMING ADVANTAGE TOGETHER WITH OTHER TECHNICAL FACTORS HAS DRIVEN PARAMOUNT'S STOCK DOWN SHARPLY IN THE PAST WEEK AS TRADERS CONCLUDED THAT THE LOWER VIACOM BID HAS A GREATER CHANCE OF SUCCEEDING VIACOM'S STOCK HAS BEEN FALLING AS TRADERS HAVE GIVEN ITS OFFER A GREATER CHANCE OF SUCCEEDING THAN QVC'S REDUCING THE VALUE OF ITS OFFER PARAMOUNT'S STOCK HAS DROPPED FROM 83 A SHARE ON NOV 12 TO 76375 A SHARE A WEEK LATER ON FRIDAY THE STOCK IS ACTING AS IF THERE'S ONLY ONE BID AND BARRY IS GONE AND VIACOM IS GOING TO WIN SAID ENTERTAINMENT ANALYST LISBETH BARRON OF SG WARBURG & CO BUT SHE ADDED THAT SHE DISAGREES BECAUSE OF THE STRENGTH OF THE QVC BID AND THE LIKELIHOOD OF COURT INTERVENTION MANY PARAMOUNT SHAREHOLDERS HAVE ALREADY SENT THEIR STOCK TO VIACOM BECAUSE OF THE TIME REQUIRED FOR DELIVERY AND THEIR CONCERNS ABOUT POSSIBLY MISSING OUT ON THE 85 CASH COMPONENT OF VIACOM'S BID AND BEING STUCK WITH THE SECURITIES PORTION CURRENTLY WORTH A SCANT 71 A SHARE I TENDERED MY SHARES EVEN THOUGH IT'S NOT THE HIGHEST OFFER BECAUSE THE OTHER ONE'S A LITTLE IFFY SAID LESLIE SPENCER A TV NEWSCASTER IN TAMPA FLA HOWEVER THE NUMBER OF SHARES TENDERED TO VIACOM ISN'T CONSIDERED IMPORTANT TO THE OUTCOME BECAUSE THEY CAN BE WITHDRAWN IN THE EVENT THAT QVC IS ALLOWED TO PROCEED WITH ITS BID PEOPLE IN THE VIACOM CAMP HAVE SUGGESTED THAT QVC COULD FACE AN ANTITRUST PROBLEM RELATED TO A PROPOSED 15 BILLION INVESTMENT IN QVC BY BELLSOUTH CORP THE ATLANTA REGIONAL TELEPHONE COMPANY BECAUSE TWO OTHER CABLETV COMPANIES HAVE ALSO AGREED TO INVEST 1 BILLION IN QVC SEN HOWARD METZENBAUM OF OHIO CHAIRMAN OF THE SENATE ANTITRUST SUBCOMITTEE SAYS THAT BECAUSE THOSE CONCERNS COX ENTERPRISES INC AND ADVANCE PUBLICATIONS INC OPERATE CABLE SYSTEMS IN BELLSOUTH'S SERVICE TERRITORY BELLSOUTH'S ZEAL TO COMPETE AGAINST THEM MIGHT BE LESSENED BECAUSE OF THE CROSSOWNERSHIP OF QVC PEOPLE CLOSE TO QVC SAID THEY EXPECT TO GARNER ANTITRUST CLEARANCE FOR THE BELLSOUTH INVESTMENT AND IN A RECENT INTERVIEW MR DILLER ANGRILY SAID VIACOM AND PARAMOUNT HAVE RAISED REGULATORY AND OTHER ISSUES IN AN ATTEMPT TO PREVENT SHAREHOLDERS FROM BEING ABLE TO MAKE A FREE AND CONSIDERED CHOICE 9311220072 931122 LEISURE & ARTS BOOKSHELF DEATH AND DECEIT ON BOTH SIDES OF ATLANTIC BY TOM NOLAN INSPECTOR MATT MINOGUE THE DUBLIN POLICE OFFICER FEATURED IN A WELLWRITTEN SERIES OF BOOKS BY JOHN BRADY TAKES A WORKING HOLIDAY IN ALL SOULS ST MARTIN'S PRESS 308 PAGES 2095 TRAVELING BACK TO HIS HOME COUNTY OF CLARE TO REEXAMINE A DUBIOUS MURDER CONVICTION FROM A DOZEN YEARS BEFORE JAMESY BOURKE RECENTLY RELEASED FROM PRISON WAS FOUND GUILTY OF KILLING A YOUNG CANADIAN WOMAN WITH WHOM HE WAS ROMANTICALLY INVOLVED BUT ALO CROSSAN A RADICAL LAWYER PERSUADES MINOGUE THERE MAY HAVE BEEN MORE TO THIS DEATH THAN EVER CAME OUT AT BOURKE'S TRIAL POLITICS OF VARIOUS SORTS COMPLICATE MINOGUE'S INVESTIGATION HIS DUBLIN COLLEAGUES ARE EAGER TO SHOW UP THE PROVINCIALS THEREBY FENDING OFF A RUMORED DEPARTMENTAL SHAKEUP CROSSAN AN AMBITIOUS MAN WITH A PRIVATE AGENDA MAY BE TRYING TO USE MINOGUE TO BESMIRCH HIS RIVALS' REPUTATIONS AND EVEN AS THE INSPECTOR PROBES LAST DECADE'S VIOLENCE A WAVE OF TERRORIST INCIDENTS PUTS THE USUALLY PLACID COUNTY OF CLARE ON FULL ALERT PAST AND PRESENT INTERSECT WHEN BOURKE HIMSELF IS KILLED SUPPOSEDLY MISTAKEN FOR A TERRORIST ONE MORE SHOCKING DEATH OCCURS AS MINOGUE AND HIS COLLEAGUE SHEA HOEY POKE INTO LONGHIDDEN MATTERS GRADUALLY INSPECTOR MINOGUE IS PULLED INTO THE CENTER OF THE DANGER ZONE HOEY'S DEPRESSION OVER A DEPARTED GIRLFRIEND AND THE MARRIED MINOGUE'S DOMESTIC COMFORTS AND SORROWS ARE OTHER THEMATIC ELEMENTS IN THIS SATISFYING NOVEL VIVIDLY RENDERED SUPPORTING CHARACTERS FILL OUT THE CAST OF ALL SOULS MR BRADY TELLS HIS ENGROSSING STORY IN SUPPLE PROSE AND HE RENDERS MINOGUE'S INNER THOUGHTS AND MOODS AS CONVINCINGLY AS HE RECORDS THE LILTING OR GRATING RHYTHMS OF IRISH SPEECH ANOTHER WELLREGARDED SERIES IS LAWRENCE BLOCK'S ONGOING CHRONICLE OF MATTHEW SCUDDER THE FORMER POLICEMAN AND RECOVERING ALCOHOLIC WHO WORKS IN MANHATTAN AS AN UNLICENSED PRIVATE EYE IN RECENT OUTINGS SCUDDER MOSTLY PUT HIS INVESTIGATIVE SKILLS ON HOLD AS HE DEALT OUT RETRIBUTION TO SOME ESPECIALLY NASTY SPECIMENS OF URBAN PATHOLOGY THE DEVIL KNOWS YOU'RE DEAD MORROW 316 PAGES 20 HAS MORE OF THE BITTERSWEET FLAVOR OF EARLIER SCUDDER NOVELS WITH THE UNOFFICIAL DETECTIVE LOOKING INTO THE DEATH OF A YOUNG PUBLISHING LAWYER HE HAD MET SOCIALLY AT FIRST THE MURDER OF GLENN HOLTZMANN SEEMS LIKE A RANDOM KILLING THE 38YEAROLD WAS GUNNED DOWN AT NIGHT WHILE MAKING A CALL FROM A PAY TELEPHONE IN HIS BORDERLINEGENTRIFIED NEIGHBORHOOD A DISTURBED STREET PERSON IS CHARGED WITH THE CRIME BUT THE ACCUSED'S BROTHER CLAIMS HIS SIBLING WOULD NEVER COMMIT SUCH A VIOLENT ACT AND THE VICTIM'S WIDOW IS PUZZLED BY EVIDENCE THAT HER HUSBAND LED SOME KIND OF SECRET LIFE SCUDDER APPROACHES THE CASE FROM TWO DIRECTIONS AS FIRST THE BROTHER AND THEN THE WIDOW EMPLOYS HIS SERVICES PROVIDING AID OF ONE SORT OR ANOTHER ARE SCUDDER'S GIRLFRIEND ELAINE WHO HAS GIVEN UP HER JOB AS A CALL GIRL HIS SALOONKEEPER PAL MICK WHO HAS PROBABLY NOT GIVEN UP HIS JOB AS A HOOD AND SOMETIME ASSISTANT TJ A TEENAGER WHO KNOWS EVEN MORE ABOUT NEW YORK'S MEANER STREETS THAN SCUDDER PROVIDING UNSOLICITED COMPLICATIONS ARE SCUDDER'S FORMER GIRLFRIEND JAN WHO ASKS A LARGE FAVOR OF HIM AND CLIENT LISA HOLTZMANN WHO OFFERS HIM MORE THAN A BUSINESS RELATIONSHIP SCUDDER'S FIRSTPERSON TALES ARE AS MUCH ABOUT THE FEARS AND PLEASURES OF LIFE IN TODAY'S NEW YORK CITY AS THEY ARE ABOUT SOLVING MYSTERIES THE NARRATOR DOES GET TO THE BOTTOM OF THINGS BUT HIS SUCCESSES ARE MIXED AND THE DETECTIVE'S PERSONAL PUZZLES ARE LEFT UNRESOLVED LIKE MEMBERS OF ONE OF SCUDDER'S SUPPORT GROUPS MR BLOCK'S READERS ARE LEARNING TO TAKE THIS REMARKABLE SERIES ONE BOOK AT A TIME JOE CROW IS ANOTHER EXCOP WHO'S GIVEN UP DRINK AND DRUGS BUT CROW THE NOMINAL HERO OF PETE HAUTMAN'S HIGHLY AMUSING DRAWING DEAD SIMON & SCHUSTER 285 PAGES 21 INDULGES SOMETHING VERY MUCH RESEMBLING AN ADDICTION TO GAMBLING CROW FANCIES HIMSELF AN EXPERT CARD PLAYER AND HE KNOWS THAT WINNING THE GAME IS ONLY HALF THE BATTLE THE REAL CHALLENGE IS TO KEEP THE MONEY EVERYONE IS AFTER SOMEONE ELSE'S STACK OF CHIPS IN THIS INVENTIVE CAPER SET MOSTLY IN MINNEAPOLIS CROW IS SAFE ENOUGH AS LONG AS HE STICKS TO POKER HIS TROUBLES BEGIN WHEN HE ACCEPTS AN ASSIGNMENT FROM STOCKBROKER RICH DICKIE WICKY TO FIND MRS WICKY'S LOVER AND BUY THE MAN OFF THE OUTRAGEOUS MRS CATFISH WICKY IS INVOLVED WITH ONEHALF OF THE TOM AND BEN SHOW A PAIR OF SCAM ARTISTS PROMOTING A LIMITED PARTNERSHIP IN A NONEXISTENT COMICBOOK COLLECTION CROW ATTEMPTING TO GET THE CASH OWED HIM BY WICKY BECOMES ENTANGLED IN THEIR SCHEME STINGS AND COUNTERSTINGS MULTIPLY AS NEW PLAYERS ENTER THE GAME MOST DANGEROUS OF THESE IS JOEY CADILLAC A SEMIMOBSTER FROM CHICAGO WHOM TOM AND BEN RIPPED OFF IN A PREVIOUS HOAX HELPING CROW DEAL WITH THIS PACK OF JOKERS IS LAURA DEBROWSKI ANOTHER EXSUBSTANCE ABUSER WITH A CHAMELEONIC ABILITY TO BLEND INTO ANY SOCIAL SCENE IN THIS VERY ACCOMPLISHED FIRST NOVEL MR HAUTMAN KEEPS THE PLOT MOVING AT AN EXHILARATING PACE THE PEOPLE ARE UNEXPECTED THE DIALOGUE IS TERRIFIC AND THE DESCRIPTIONS ARE LAUGHOUTLOUD FUNNY BAWDY GRITTY AND UNPREDICTABLE DRAWING DEAD IS A SPARKLING DEBUT 9311220071 931122 TALBOT SHARES BEGIN TRADING SURGE 16 FROM OFFERING PRICE NEW YORK SHARES OF TALBOTS INC ROSE 16 ON THEIR FIRST DAY OF TRADING ON THE NEW YORK STOCK EXCHANGE THE STOCK OF THE HINGHAM MASS SPECIALTY RETAILER AND MAILORDER SELLER OF WOMEN'S APPAREL OPENED AT 22 TRADED AS HIGH AS 22875 BEFORE CLOSING THE DAY AT 22625 MORE THAN 69 MILLION SHARES WERE TRADED THE INITIAL OFFERING OF 11 MILLION SHARES WAS PRICED AT 1950 A SHARE THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED AT BETWEEN 18 AND 20 EACH UP FROM 15 TO 17 EACH THE OFFERING WAS UNDERWRITTEN BY MERRILL LYNCH & CO TALBOTS WAS ACQUIRED IN 1988 FROM GENERAL MILLS INC FOR 325 MILLION BY JUSCO CO A JAPANESE COMPANY THE OFFERING REDUCES ITS OWNERSHIP TO 67 OF THE 215 MILLION RAISED THROUGH THE STOCK SALE 128 MILLION WILL GO DIRECTLY TO JUSCO ANOTHER 25 MILLION WILL BE USED TO FUND A DIVIDEND THAT ALSO WILL GO TO JUSCO FOR THE FISCAL YEAR ENDED JAN 30 TALBOTS'S SALES ROSE 22 TO 642 MILLION WHILE NET INCOME NEARLY TRIPLED TO 204 MILLION COMPARABLESTORE SALES GREW 12 IN THE YEAR FOLLOWING TWO YEARS OF DECREASES CATALOG SALES WERE 147 MILLION OF TOTAL SALES AND INSTORE SALES ACCOUNTED FOR 495 MILLION BOTH CATEGORIES INCREASED STRONGLY FROM A YEAR EARLIER 9311220070 931122 TECHNOLOGY BRIEF MERCK & CO SHARES OF STOCK ARE SWAPPED IN DEAL FOR MEDCO HOLDERS HOLDERS OF 77 OF THE SHARES OF MEDCO CONTAINMENT SERVICES INC MONTVALE NJ ELECTED TO EXCHANGE THEIR SHARES FOR MERCK & CO STOCK A MERCK SPOKESMAN SAID HOWEVER BECAUSE ONLY HOLDERS OF 29 MILLION SHARES OR ABOUT 18 OF MEDCO SHARES CHOSE TO RECEIVE CASH AT 39 A SHARE LESS THAN THE 40 UNDER TERMS OF THE MERGER AGREEMENT SOME HOLDERS WHO ELECTED STOCK WILL RECEIVE PART OF THEIR SETTLEMENT IN CASH MERCK SAID HOLDERS OF ABOUT 121 MILLION SHARES OF MEDCO ELECTED TO RECEIVE MERCK STOCK AT A RATIO OF 1214 MERCK SHARES FOR EACH MEDCO SHARE IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE MERCK SHARES ROSE 50 CENTS TO CLOSE AT 35125 9311220069 931122 TELEVISION WARNER BROS WILL SPEND MILLIONS ON A TV SHOW ABOUT SHOW BIZ ENTERTAINMENT NEWS TELEVISION' BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC LIKES TO BOAST THAT IN THE 13 YEARS THAT ITS ENTERTAINMENT TONIGHT SHOWBUSINESS NEWSMAGAZINE HAS BEEN ON THE AIR 74 PROGRAMS HAVE TRIED AND FAILED TO COMPETE WITH IT WARNER BROS IS DETERMINED IT WON'T BE NO 75 THE TIME WARNER INC UNIT ALREADY LOCKED IN MORTAL COMBAT WITH PARAMOUNT TO LAUNCH THE NATION'S FIFTH BROADCAST NETWORK IS GOING INTO BATTLE ON ANOTHER FRONT TRYING TO PERSUADE TV STATIONS TO BUY ITS ENTERTAINMENT NEWS TELEVISION OR ENT WARNER IS COMMITTING 75 MILLION OVER TWO YEARS TO LAUNCH THE SHOW WHICH MAKES ITS DEBUT NEXT FALL AND IT HAS HIRED A FORMER ENTERTAINMENT TONIGHT EXECUTIVE PRODUCER DAVID NUELL TO PRODUCE IT WARNER IS CONVINCED THAT THE APPETITE FOR SUCH PROGRAMMING HAS GROWN SINCE THE OTHER SHOWS FAILED INDEED WHILE THERE IS NO OTHER MAJOR BROADCAST COMPETITOR A NUMBER OF ENTERTAINMENT PROGRAMS HAVE BLOOMED ON CABLE TURNER BROADCASTING SYSTEM INC'S CABLE NEWS NETWORK DOES A DAILY HALFHOUR SHOW CALLED SHOWBIZ TODAY VIACOM INC'S MTV UNIT RUNS ENTERTAINMENT NEWS PROGRAMS AND TIME WARNER ITSELF OWNS 48 OF E ENTERTAINMENT TELEVISION A CABLE NETWORK SOME OF THE CABLE PROGRAMMERS ARE NOW CONSIDERING A BROADCAST SHOW OF THEIR OWN AND WARNER IS MOVING AGGRESSIVELY TO BE FIRST IN THE FIELD THE COMPANY SAYS IT HAS A BIG ADVANTAGE THE ABILITY TO TAP THE RESOURCES OF TIME WARNER'S VAST ENTERTAINMENT AND PUBLISHING EMPIRE WARNER SAYS ENT WILL HAVE ADVANCE ACCESS TO STORIES IN THE WORKS AT THE TIME MAGAZINES INCLUDING ENTERTAINMENT WEEKLY AND PEOPLE THE PROGRAM IS THE FIRST MAJOR PROJECT FROM A NEW DIVISION TIME TELEPICTURES TELEVISION WHICH WAS PUT TOGETHER TO TAKE ADVANTAGE OF THE SYNERGY PROMISED WHEN TIME INC MERGED WITH WARNER COMMUNCIATIONS IN 1989 ENTERTAINMENT TONIGHT WHILE NOT THE MOSTVIEWED SYNDICATED SHOW IS HIGHLY SUCCESSFUL IN THE LUCRATIVE TIME SLOT KNOWN AS PRIME ACCESS THE HALFHOUR OR HOUR BEFORE PRIMETIME WHEN STATIONS MAKE A GOOD PORTION OF THEIR REVENUE THE BIGGEST HURDLE FOR TIME WARNER IS PERSUADING STATIONS TO RUN ANOTHER ENTERTAINMENT NEWS SHOW IN PRIME ACCESS WHEN THEY ALREADY MAKE MONEY FROM GAME SHOWS AND TABLOID TV MAGAZINE SHOWS SO FAR ENT HAS BEEN PICKED UP BY STATIONS ACCOUNTING FOR ABOUT 45 OF THE COUNTRY FAR SHORT OF THE 80 NEEDED TO DRAW ADVERTISERS SOME MAJOR STATIONS SUCH AS WNBC IN NEW YORK AND KNBC IN LOS ANGELES WILL PUT THE SHOW IN PRIME ACCESS BUT OTHERS WILL RUN IT IN LESS DESIRABLE SLOTS ENTERTAINMENT TONIGHT BY CONTRAST CAN BE SEEN IN 96 OF ALL US TV HOMES AND MORE THAN 65 OF ITS TIME SLOTS ARE IN PRIME ACCESS MANY OF THE HOLDOUT STATIONS ARE BALKING AT BUYING THE SHOW WITHOUT SEEING A PILOT FEARING A REPEAT OF THE USA TODAY ON TELEVISION EXPERIENCE SEVERAL SEASONS BACK THAT SHOW WAS SOLD SIGHT UNSEEN AND BOMBED WARNER SAYS THAT MR NUELL'S PRODUCTIONS OF ENTERTAINMENT TONIGHT SHOULD SERVE IN LIEU OF A PILOT INDEED WARNER IS RELYING UNUSUALLY HEAVILY ON THE SUCCESS OF ENTERTAINMENT TONIGHT TO PITCH ITS OWN SHOW WE'RE NOT REINVENTING THE WHEEL SAYS DICK ROBERTSON WARNER BROS' DOMESTIC TELEVISION DISTRIBUTION PRESIDENT IN ITS PITCH TO STATIONS THE WARNER BROS SALES TEAM POINTS OUT THAT SOME 56 OF THE ET AUDIENCE IS UNDER 50 A YOUNGER AUDIENCE THAN THE TOPRATED KING WORLD PRODUCTIONS INC GAME SHOWS WHEEL OF FORTUNE AND JEOPARDYCOMMAND AND THE SHOW IS TOPS AMONG ADVERTISERCOVETED 18TO49YEAROLDS THE SHOW HAS AN AVERAGE WEEKLY LICENSE FEE OF 700000 LESS THAN THE 1 MILLION THAT STATIONS PAY ON AVERAGE FOR WHEEL AND JEOPARDY AND IT COMMANDS A HIGHER PRICE PER 30SECOND AD 80000 COMPARED WITH 65000 FOR WHEEL AND 55000 FOR JEOPARDY IN ADDITION ET DOESN'T HAVE THE PROBLEM OF THE TABLOID NEWSMAGAZINES WHICH DRAW VIEWERS BUT SCARE OFF MANY ADVERTISERS WITH THEIR CRIMEANDSEX EMPHASIS WARNER THINKS THESE SHOWS ARE THE MOST LIKELY TO BE REPLACED BY ENT SOME TV EXECUTIVES WONDER WHETHER THE HIGHLY COMPETITIVE PRINT JOURNALISTS AT TIME'S MAGAZINES WILL GIVE THE SHOW PRIOR ACCESS TO NOTES AND STORIES I DON'T THINK THE SYNERGY IS GOING TO BE AS MUCH AS THEY THINK IT'S GOING TO BE SAYS RICHARD KURLANDER A VICE PRESIDENT AT PETRY TELEVISION WHICH ADVISES STATIONS ON WHICH SHOWS TO BUY BUT ROBERT MILLER AN EXECUTIVE VICE PRESIDENT OF THE TIME INC MAGAZINE COMPANY DISPUTES THAT TEN YEARS AGO JOURNALISTS WOULD HAVE VIEWED COOPERATING WITH A TV SHOW AS DEMEANING HE SAYS THESE DAYS THOUGH THE BETTER KNOWN JOURNALISTS VIEW THEMSELVES AS MULTIMEDIA PERSONALITIES AND JIM PARATORE PRESIDENT OF TELEPICTURES PRODUCTIONS ARGUES THAT RATHER THAN JUST PROMOTING THE MAGAZINES ADVANCE ACCESS TO THEIR STORIES WILL PUT THE SHOW A STEP AHEAD AS IT PREPARES ITS OWN COVERAGE ENTERTAINMENT TONIGHT PRODUCERS SAY THEY AREN'T TOO WORRIED THIS SEASON THE SHOW HAS HIRED SEVERAL NEW REPORTERS AND ADOPTED A LESS STRUCTURED FORMAT PLAYING DOWN HARDEDGED NEWS IN FAVOR OF SUCH FEATURES AS BEHINDTHESCENES TOURS OF TVSHOW SETS WE'VE SET OUR OWN AGENDA FOR 13 SEASONS AND BEEN PRETTY SUCCESSFUL SAYS JIM VAN MESSEL THE EXECUTIVE PRODUCER WE'RE GOING TO KEEP DOING WHAT WE'RE DOING WE CAN'T REACT TO SOMETHING THAT DOESN'T EXIST 9311220068 931122 BUSINESS BRIEF ROYAL DUTCH/SHELL GROUP US UNIT PLANS TO INCREASE SPENDING ON OIL EXPLORATION SHELL OIL CO SAID IT HAS SET A 1994 CAPITAL AND EXPLORATORY BUDGET OF 31 BILLION UP 800 MILLION FROM 1993'S ANTICIPATED EXPENDITURES THE HOUSTON COMPANY A UNIT OF ROYAL DUTCH/SHELL GROUP SAID IT WILL BOOST 1994 SPENDING FOR EXPLORATION AND PRODUCTION ACTIVITIES TO 15 BILLION A 300 MILLION INCREASE PHILLIP J CARROLL SHELL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE INCREASED SPENDING ON EXPLORATION AND PRODUCTION IS A RESULT OF ADDITIONAL DEVELOPMENT ACTIVITY IN THE GULF OF MEXICO OILPRODUCTS EXPENDITURES WILL RISE TO 11 BILLION IN 1994 UP 400 MILLION THAT'S DUE TO UPGRADING OF OUR MARTINEZ CALIF REFINERY AND INCREASED SPENDING FOR ENVIRONMENTAL PROJECTS MR CARROLL SAID CHEMICALPRODUCTS SPENDING FOR 1994 IS EXPECTED TO BE ABOUT THE SAME AS 1993'S LEVEL OF 400 MILLION SHELL SAID 9311220067 931122 WHO'S NEWS SYNOPSYS INC SYNOPSYS INC MOUNTAIN VIEW CALIF AART J DE GEUS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS SOFTWARE CONCERN WAS NAMED CHIEF EXECUTIVE OFFICER MR DE GEUS SUCCEEDS HARVEY C JONES WHO REMAINS CHAIRMAN THE COMPANY SAID MR DE GEUS'S POST AS CHIEF OPERATING OFFICER WON'T BE FILLED 9311220066 931122 BUSINESS BRIEF NOEL GROUP INC HOLDINGS IN TWO COMPANIES TO BE DISTRIBUTED TO HOLDERS NOEL GROUP INC NEW YORK SAID IT PLANS TO DISTRIBUTE ITS HOLDINGS IN SYLVAN FOOD HOLDINGS INC AND BELDING HEMINWAY CO TO NOEL SHAREHOLDERS BELDING HEMINWAY A MANUFACTURER OF SPECIALTY THREADS YARNS AND BUTTONS WAS ACQUIRED BY NOEL LAST JULY NOEL SAID IT PLANS TO DISTRIBUTE SUBSTANTIALLY ALL ITS HOLDINGS IN BELDING HEMINWAY OTHER THAN SHARES RESERVED FOR BELDING'S AND NOEL'S INCENTIVE PROGRAMS THE DISTRIBUTION RATIO HASN'T BEEN SET DISTRIBUTION IS PLANNED FOR FEBRUARY NOEL SAID IT WILL DISTRIBUTE ITS 25 HOLDINGS OF SYLVAN COMMON STOCK TO NOEL SHAREHOLDERS IN LATE DECEMBER IN A RATIO OF 00694 SHARES OF SYLVAN COMMON FOR EACH NOEL COMMON SHARE SYLVAN IS A PRODUCER OF MUSHROOMS AND MUSHROOM SPAWN NOEL WILL CONTINUE TO HOLD VOTING CONTROL OF TWO PUBLIC AND TWO PRIVATE COMPANIES IN DIVERSE BUSINESSES INCLUDING INDUSTRIAL HARDWARE SNACKS AND CONFECTIONS AND OUTDOOR OPTICAL SPORTING EQUIPMENT 9311220065 931122 REVIEW & OUTLOOK EDITORIAL THE UNSPOTTED STURGEON IT'S HARD TO BELIEVE BUT THE ENDANGERED SPECIES GEARS ARE GRINDING TOWARD SHUTTING DOWN A GOOD CHUNK OF SOUTHERN ALABAMA THE REASON A FISH THAT EITHER HASN'T BEEN SEEN IN A DECADE OR IS PLENTIFUL FROM MONTANA TO THE MISSISSIPPI DELTA DEPENDING ON YOUR TAXONOMIC SYMPATHIES THIS WRECKING BALL GOT SWINGING TWO YEARS AGO BECAUSE OF AN ARTICLE IN THE BULLETIN OF THE ALABAMA MUSEUM OF NATURAL HISTORY AFTER EXAMINING A STUFFED MUSEUM SPECIMEN THE AUTHORS TOSSED OUT 100 YEARS OF SCIENTIFIC OPINION AND DECLARED THE ALABAMA STURGEON A SEPARATE SPECIES FROM THE MISSISSIPPI SHOVELNOSE THAT WAS ALL THE LOCAL US FISH AND WILDLIFE OFFICE NEEDED TO NOMINATE THE RARELY SPOTTED STURGEON FOR THE ENDANGERED LIST THE PHANTOM FISH HAS BECOME A RUNNING JOKE IN THE ALABAMA PAPERS STATE OFFICIALS HAVE LAUNCHED A FRANTIC HUNT USING GILL NETS HOOP NETS ELECTROSHOCK AS WELL AS THE FISH POISON ROTENONE BUT CAN'T SEEM TO SCARE ONE UP FOR VIEW NOBODY WILL BE LAUGHING IF THE FISH WINS FEDERAL PROTECTION UNDER A FEDERAL RULE ALREADY DRAFTED THE STURGEON WOULD BE AWARDED SOME OF THE NATION'S BUSIEST COMMERCIAL WATERWAYS AS CRITICAL HABITAT INCLUDING THE LOWER REACHES OF THE ALABAMA CAHABA AND TOMBIGBEE RIVERS OWING TO VAGUE HOPES THAT SOMEWHERE A LONELY STURGEON MAY STILL BE SNUFFLING ALONG THESE BOTTOMS IN SEARCH OF SNAILS AND WHATNOT DREDGING WOULD BE SHARPLY CURTAILED CAUSING THE NAVIGATION CHANNELS TO SILT UP IF THE STATE'S BARGE TRAFFIC STOPS MOVING 20000 JOBS COULD VANISH NO WONDER ALABAMA'S ENTIRE CONGRESSIONAL DELEGATION HAS COME OUT AGAINST A LISTING AT A PUBLIC MEETING LAST MONTH IN MOBILE HUNDREDS HAD TO STAND OUTSIDE AND PEEP THROUGH THE OPEN WINDOWS THESE FOLKS CHEERED THE 59 SPEAKERS WHO BADMOUTHED THE STURGEON AND BOOED THE FISH'S ONLY SUPPORTER JIM STEWART THE US FISH AND WILDLIFE BIOLOGIST WHO HAS TAKEN ON THE MISSION OF SHEPHERDING THE STURGEON THROUGH THE BUREAUCRACY IS PUZZLED THAT SEEMINGLY INTELLIGENT PEOPLE WOULD RISE UP AGAINST SCAPHIRHYNCHUS PLATORYNCHUS IT'S NOT THE FISH THAT SCARES FOLKS BUT THE CROWBAR IT WOULD GIVE LITIGIOUS ACTIVISTS CITIZENS IN ALABAMA HAVE HEARD TELL OF THE SPOTTED OWL EXPLOITED BY ENVIRONMENTALISTS TO KILL OFF MUCH OF THE NORTHWEST TIMBER INDUSTRY US SENATOR RICHARD SHELBY WARNED THE MOBILE MEETING THAT AN ENDANGERED LISTING CAN OPEN A PANDORA'S BOX THAT WOULD WRECK THOUSANDS OF LIVES WE DON'T QUESTION MR STEWART'S DEVOTION TO SAVING RARE SPECIES BUT THE LAW'S MYOPIC ABSOLUTISM MAKES HIM A DANGEROUS FELLOW HE TAKES CREDIT FOR PUTTING 15 OR 20 ON THE LIST SO MR STEWART CLEARLY KNOWS HOW TO WORK THE PROCESS IT WAS MR STEWART WHO ORCHESTRATED THE STUDY THAT DUBBED THE STURGEON A UNIQUE SPECIES IN THE FIRST PLACE HE DRAFTED THE PROPOSAL FOR AN ENDANGERED LISTING AND PLOTTED OUT ITS CRITICAL HABITAT INOPPORTUNELY HE SUBMITTED HIS FIRST PACKAGE TO INTERIOR'S DIVISION OF ENDANGERED SPECIES DURING THE PRESIDENTIAL CAMPAIGN AND IT QUICKLY CAME BACK TO HIM BUT AFTER BILL CLINTON'S ELECTION HE GOT A CALL FROM WASHINGTON INVITING HIM TO RESUBMIT HIS FRIENDS IN THE BUREAUCRACY CAME TO HIS RESCUE AGAIN WHEN ALABAMA'S CONGRESSMEN BEGAN THROWING ROCKS AT INTERIOR SECRETARY BRUCE BABBITT MR BABBITT PROMISED TO APPOINT AN INDEPENDENT SCIENTIFIC PANEL BUT SOMEHOW THE JOB OF PICKING THE MEMBERS LANDED BACK ON MR STEWART'S DESK NOW A COURT HAS BLOCKED THE REPORT MR STEWART CONSIDERS HIMSELF A SIMPLE SCIENTIST BUT HE CLEARLY UNDERSTANDS THE IMPORTANCE OF REMEDIAL FLACKERY HE'S FREQUENTLY QUOTED IN THE ALABAMA PRESS POOHPOOHING THE POTENTIAL JOB LOSSES AND HE ALMOST HAS A WAR GOING WITH THE US ARMY CORPS OF ENGINEERS WHICH PREDICTS THAT WITHOUT STEADY DREDGING THE RIVERS WOULD BE IMPASSABLE IN 12 MONTHS OR LESS THE TAXONOMIC QUESTIONS THOUGH MAY BE THE REAL ZINGER FOR FUTURE PRESERVATIONIST BATTLES IN MR STEWART'S VIEW ANY POPULATION THAT UNDERGOES A PERIOD OF GEOGRAPHIC ISOLATION CAN BE DEEMED A SEPARATE SPECIES REGARDLESS OF ITS POTENTIAL FOR INTERBREEDING WITH OUTSIDERS IF IT LOOKS DIFFERENT IT IS DIFFERENT AND COMPARED TO THE MISSISSIPPI SHOVELNOSE THE ALABAMA STURGEON HAS A BIGGER EYE AND A SLIGHTLY DIFFERENT ARRANGEMENT OF SCALES IF THAT DEFINITION IS ADOPTED WE'RE ALL IN TROUBLE SAYS MIKE HOWELL AN ICHTHYOLOGIST AT BIRMINGHAM'S SAMFORD UNIVERSITY MR HOWELL LED THE RECOVERY EFFORT FOR ALABAMA'S FIRST ENDANGERED FISH THE WATERCRESS DARTER THIS TIME HE'S JOINED THE STURGEON'S OPPONENTS AND EVEN BRIEFED MR BABBITT ON THEIR BEHALF MR HOWELL'S POINT IS WELL TAKEN IT'S INEVITABLE THAT CONTIGUOUS ANIMAL POPULATIONS WILL GET SECTIONED OFF BY THE SPREAD OF HUMAN SOCIETIES IF GEOGRAPHIC ISOLATION BECOMES THE LEGAL RULE TWO GUPPIES LIVING ON EITHER SIDE OF A DAM COULD BE DEEMED DIFFERENT SPECIES NO WONDER MANY ECOLOGISTS ARE TALKING LESS ABOUT SPECIES THESE DAYS AND MORE ABOUT PRESERVING HABITATS WHERE THE ANIMALS AND PLANTS PRESUMABLY CAN BE LEFT TO FIGURE OUT THEIR OWN IDENTITIES BUT THEN THAT'S BEEN THE PROBLEM WITH THE ENDANGERED SPECIES ACT FROM THE BEGINNING ITS SCATTERSHOT ATTEMPT TO PRESERVE EVERYTHING DEFIES ANY SENSIBLE ATTEMPT TO MAKE RATIONAL CHOICES SCIENTISTS HAVE ONLY CATALOGED ABOUT THREE MILLION OF THE ESTIMATED 100 MILLION SPECIES ON EARTH UNLESS THE LAW IS CHANGED IT'S ONLY A MATTER OF TIME BEFORE ZOOLOGISTS IDENTIFY ENOUGH RARE CRITTERS TO MAKE THE PLANET LEGALLY OFF LIMITS TO HUMANS 9311220064 931122 REVIEW & OUTLOOK EDITORIAL THE OLD ORDER ENDETH IT MAY BE NO OVERSTATEMENT TO SUGGEST THAT THE REFORM LEGISLATION PASSED LAST THURSDAY WILL CHANGE JAPAN'S POLITICS MORE THAN ANY SINGLE EVENT SINCE GENERAL DOUGLAS MACARTHUR LEFT ITS SHORES THE BILLS PASSED IN THE LOWER HOUSE OF THE DIET THURSDAY PROVIDE FOR 276 SINGLESEAT CONSTITUENCIES AND 226 TO BE DIVVIED UP ACCORDING TO EACH PARTY'S PERCENTAGE OF THE VOTE CAMPAIGNS WILL BE PUBLICLY FINANCED AND CORPORATE DONATIONS BANNED THERE IS NO DOUBT THAT THIS REFORM PACKAGE CHANGES THINGS AS ONE WESTERN ANALYST TOLD US AN ELECTORAL SYSTEM DEFINES WAYS IN WHICH POWER IS ALLOCATED WHEN YOU CHANGE THE MIX YOU ARE GOING TO BRING A PROFOUNDLY DIFFERENT RESULT THE LDP WHICH UNTIL AUGUST HAD RULED FOR 38 STRAIGHT YEARS WITH THE ARROGANCE OF DIVINE RIGHT WON'T BE ABLE TO WITHSTAND THE PRESSURE OF A MORE COMPETITIVE SYSTEM FOR YEARS LDP MEMBERS HAD NOTHING IN COMMON EXCEPT A DESIRE TO BE IN POLITICS AND NEAR THE SOURCE OF CAMPAIGN FUNDS THAT'S NOT GOING TO BE ENOUGH TO KEEP THE PARTY TOGETHER IN A SYSTEM WHERE ONE ACTUALLY HAS TO WIN AN ELECTION TO TAKE A SEAT UNLIKE THE CURRENT SYSTEM OF THREE TO SIXSEAT DISTRICTS IN WHICH PLAYING FOR THIRD WAS ADEQUATE THE SOCIALISTS IN FACT HAVE SURVIVED BY PLAYING FOR THIRD WITH THEIR WHACKY AGENDA AND REPUTATION AS LOSERS THEY WON'T LIVE LONG IN THE NEW ORDER FINALLY PRIME MINISTER MORIHIRO HOSOKAWA'S UNWIELDY EIGHTPARTY COALITION OF WHICH THE SOCIALISTS ARE THE LARGEST PART WILL FRACTURE LIKE A SPECIES THAT DIES AS SOON AS IT HAS MATED POLITICAL REFORM WAS THE COALITION'S ONLY COMMON PURPOSE AND IT CANNOT SURVIVE COMPLETION OF ITS MISSION AMIDST ALL THIS BREAKING OF CROCKERY A VERY DIFFERENT LOOKING STRUCTURE WILL EMERGE CONSISTING OF TWO OR MORE FAIRLY LARGE PARTIES THE ONE CERTAINTY IS THERE WILL BE REAL COMPETITION FOR POWER NOT THE OSSIFIED ONEANDAHALF PARTY DEMOCRACY THAT HAS BEEN DISCREDITED THE NEW SYSTEM WILL ENHANCE REAL ARGUMENT AS TO WHICH DIRECTION JAPAN'S ECONOMY AND SOCIAL AND ECONOMIC STRUCTURES WILL GO SAYS TOMOYUKI WATANABE OF THE HESEI RESEARCH INSTITUTE THAT IS WHAT THE JAPANESE PEOPLE WANT IN POLICY TERMS THE OUTLOOK IS NOT SO EASILY FORECAST THE CURRENT COALITION IS WEAK AND PEOPLE ARE ONLY BEGINNING TO COME TO TERMS WITH HAVING TO DISPLAY A SET OF BELIEFS TO GET ELECTED NOW THAT POLITICAL REFORM IS BEHIND MR HOSOKAWA ET AL THEY NEED TO BROADEN THEIR APPEAL TO HAVE A CHANCE AT THE NEXT ELECTION WE WOULD SUGGEST THAT MR HOSOKAWA DARE TO BE AS DIFFERENT AS HE SAYS HE IS WHERE THE LDP IS FOR BIG BUSINESS AND BIG BUREAUCRACY HE SHOULD BE FOR DECENTRALIZATION AND CONSUMERS THE LDP HANKERS FOR MERCANTILISM HE SHOULD BE A FREE TRADER IT IS TRUE THAT THE BUREAUCRACY WILL REMAIN POWERFUL THAT IT WRITES ALMOST ALL LEGISLATION AND THAT JAPAN'S POLITICIANS HAVE BEEN HAPPY WITH THAT BUT THERE IS TALK OF CURBING THE IMPERIAL BUREAURACY'S OVERREACH BY FOR EXAMPLE HAVING MORE POLITICAL APPOINTEES DEVELOPING A STAFF SYSTEM AND BARRING CIVIL SERVANTS FROM TESTIFYING TO THE DIET SO THAT THE POLITICIANS WILL HAVE TO LEARN SOMETHING CYNICISM COMES EASILY WHEN THE SUBJECT IS THE POSSIBILITY OF CHANGE TO JAPAN'S POLITICAL SYSTEM BUT WE THINK THAT THE MOMENTUM OF EVENTS THE BREAKUP OF THE LDP THE CHANGE OF GOVERNMENT AND NOW THIS VOTE FOR REFORM IS STRONG ENOUGH THAT KNEEJERK DISBELIEF IS NO LONGER JUSTIFIED 9311220063 931122 BUSINESS BRIEF ADVANCED DEPOSITION TECHNOLOGIES PROFIT IS SEEN THIS QUARTER AGAINST A YEAREARLIER LOSS ADVANCED DEPOSITION TECHNOLOGIES INC EXPECTS NET INCOME OF FIVE CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH A YEARAGO LOSS OF TWO CENTS A SHARE ON A 19 JUMP IN REVENUE JOSEPH A BARBOZA CHIEF FINANCIAL OFFICER ALSO SAID THE TAUNTON MASS MAKER OF METALLIZED FILMS ALSO KNOWN AS AD TECH RECEIVED A LETTER OF INTENT FROM A KEY CUSTOMER THAT COULD SIGNIFICANTLY INCREASE REVENUE IN 1994 AD TECH WHICH STARTED OUT MAKING METALLIZED FILMS FOR THE ELECTRONICS INDUSTRY IS EXTENDING ITS TECHNOLGY TO THE MICROWAVEFOODS PACKAGING MARKET THE TECHNOLOGY IS USED TO COOK FOODS THAT DON'T MICROWAVE EASILY SUCH AS MEATS SNACK FOODS OR BAKED GOODS MR BARBOZA SAID THE COMPANY EXPECTS TO REPORT FOURTHQUARTER NET OF ABOUT 150000 THE YEARAGO LOSS WAS 45000 WITH FEWER SHARES OUTSTANDING FOURTHQUARTER REVENUE SHOULD RISE TO ABOUT 19 MILLION FROM NEARLY 16 MILLION MR BARBOZA SAID IN AN INTERVIEW 9311220062 931122 BUSINESS BRIEF RELIANCE GROUP HOLDINGS INC TELEMUNDO GROUP INC FILES FOR CHAPTER 11 PROTECTION TELEMUNDO GROUP INC SAID IT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE AFTER REACHING AN ACCORD WITH THE CREDITORS ON A PLAN FOR RESTRUCTURING THE COMPANY UNDER TERMS OF THE AGREEMENT ALL OF TELEMUNDO'S EXISTING DEBT WILL BE CANCELED IN EXCHANGE FOR THE COMPANY'S ISSUANCE TO CREDITORS OF ABOUT 35 MILLION IN CASH NEW SENIOR NOTES REORGANIZED TELEMUNDO COMMON STOCK AND WARRANTS TO BUY ADDITIONAL COMMON SHARES OF THE REORGANIZED CONCERN EXISTING SHAREHOLDERS' COMMON STOCK WILL BE EXTINGUISHED AND EXISTING SHAREHOLDERS WILL HAVE THE OPPORTUNITY TO BUY 145 OF THE COMMON STOCK TO BE ISSUED UNDER THE REORGANIZATION PLAN AT A PRICE THAT VALUES THE COMPANY AT ABOUT 70 MILLION 9311220061 931122 CLOSED END FUNDS FRIDAY NOVEMBER 19 1993 BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN CCHICAGO TTORONTO 9311220060 931122 PRICE CONTROLS ON HEALTH CARE BY ELIZABETH MCCAUGHEY AS I PORED OVER THE PRESIDENT'S 1342PAGE HEALTH PLAN I REMEMBERED THE TV AD A COUPLE DISCUSSING THE PLAN AND WHAT PRICE CONTROLS ON INSURANCE PREMIUMS WOULD MEAN THE AD ONE OF THOSE CRITICIZED BY THE FIRST LADY IS RIGHT ON THE POINT THE ADMINISTRATION'S HEALTH BILL IS A SYSTEM OF PRICE CONTROLS THAT WILL KEEP YOU FROM GETTING MEDICAL CARE WHEN YOU NEED IT LIMITING HOW MUCH PEOPLE CAN CHOOSE TO PAY FOR INSURANCE LIMITS HOW MUCH MONEY IS IN THE POT TO TAKE CARE OF THEM WHEN THEY'RE SICK BUT WHAT IF THERE'S NOT ENOUGH MONEY THE WOMAN IN THE AD ASKS I MEAN WHAT HAPPENS THEN THE HEALTH SECURITY BILL SPELLS OUT THE TROUBLING ANSWER A NATIONAL HEALTH BOARD SEVEN PEOPLE APPOINTED BY THE PRESIDENT WILL DECIDE HOW MUCH THE NATION CAN SPEND ON HEALTH CARE EACH YEAR BASED ON THAT BUDGET THE BOARD PUTS PRICE CAPS ON PREMIUMS TO LIMIT THE MONEY PAID INTO THE HEALTH CARE SYSTEM PAGES 252 97477 IF MEDICAL NEEDS EXCEED THAT BUDGET AND PREMIUM MONEY RUNS LOW THE BILL REQUIRES STATE GOVERNMENTS AND INSURERS TO MAKE AUTOMATIC MANDATORY NONDISCRETIONARY REDUCTIONS IN PAYMENTS TO DOCTORS NURSES AND HOSPITALS TO ASSURE THAT EXPENDITURES WILL NOT EXCEED THE BUDGET PAGES 109 134 WHAT IF A FLU EPIDEMIC OR A SURGE IN AIDS CASES BREAKS THE BUDGET AND PAYMENTS TO HOSPITALS ARE SLASHED AS THE BILL REQUIRES NEW YORK CITY HOSPITALS WHICH OPERATE WITH ONLY FOUR DAYS' CASH ON HAND WOULD EXPERIENCE LIFETHREATENING SHORTAGES NURSES WORKING WITHOUT PAY MEDICATIONS WITHHELD BECAUSE OF COST EVEN WITHOUT AN UNFORESEEN CRISIS HOWEVER PRICE CONTROLS ON PREMIUMS WILL MEAN PEOPLE CANNOT GET THE CARE THEY NEED HERE'S WHY UNDER THE HEALTH BILL ALMOST ALL AMERICANS MUST BUY BASIC HEALTH COVERAGE THROUGH THE REGIONAL ALLIANCE WHERE THEY LIVE PAGES 15 240 REGIONAL ALLIANCES ARE GOVERNMENTRUN MONOPOLIES THAT DECIDE WHICH HEALTH PLANS WILL BE OFFERED COLLECT PREMIUMS FROM EMPLOYERS AND RESIDENTS AND PAY MOST OF THE PREMIUM MONEY TO INSURERS AND HMOS THE NATIONAL HEALTH BOARD WILL SET A HEALTH CARE BUDGET FOR 1996 THE BASELINE YEAR ALLOCATE IT AMONG THE REGIONAL ALLIANCES AND SET A PRICE CEILING ON WHAT THE AVERAGE HEALTH PLAN CAN COST IN EACH REGION TO SELL HEALTH COVERAGE IN A REGION HMOS AND INSURERS MUST AGREE TO STAY UNDER THE CEILING PAGES 974 979 984 987 AFTER 1996 HEALTH CARE SPENDING IS STRICTLY LIMITED BY AN INFLATION FACTOR BASED ON THE CONSUMER PRICE INDEX THE BILL PROHIBITS A REGION'S AVERAGE PREMIUM FROM RISING MORE THAN THE CPI PLUS 1 IN 1997 ABOUT 45 TOTAL OR MORE THAN JUST THE CPI BEGINNING IN 1999 PAGE 968 MANDATORY LIMITS ON HEALTH CARE SPENDING MAY WRING WASTE OUT OF THE SYSTEM IN THE FIRST YEAR OR TWO BUT WILL CAUSE HARDSHIP IN SUCCEEDING YEARS AS THE 77 MILLION BABY BOOMERS AGE AND REQUIRE MORE MEDICAL CARE LIMITING SPENDING GROWTH TO THE CPI IN DEFIANCE OF THIS POPULATION TREND WILL HAVE PREDICTABLE RESULTS IN BRITAIN WHERE HEALTH CARE IS RATIONED PEOPLE OVER 55 ROUTINELY ARE DENIED KIDNEY DIALYSIS LIMITING SPENDING GROWTH TO THE CPI BY GOVERNMENT FIAT ALSO IGNORES THE CHRONIC SOCIAL PROBLEMS UNDERLYING HEALTH CARE DEMAND IT AMOUNTS TO RATIONING THE REMEDY WITHOUT ADDRESSING THE MALADY IT COSTS 158000 FOR EXAMPLE TO SAVE A LOWBIRTHWEIGHT BABY MOST SUCH INFANTS ARE THE RESULT OF TEEN PREGNANCIES WHICH ARE TWICE AS COMMON IN THE US AS IN CANADA AS MR CLINTON TOLD DOCTORS AT JOHNS HOPKINS WE'LL NEVER GET THE COST OF HEALTH CARE DOWN TO WHERE IT IS IN OTHER COUNTRIES AS LONG AS WE HAVE HIGHER RATES OF TEEN PREGNANCIES AND HIGHER RATES OF LOWBIRTHWEIGHT BIRTHS AND HIGHER RATES OF AIDS AND MOST IMPORTANT OF ALL HIGHER RATES OF VIOLENCE THE WISDOM IS IN THE PRESIDENT'S WORDS NOT IN HIS RATIONING PLAN WHO DOES THE ACTUAL RATIONING THE FEDERAL GOVERNMENT LIMITS DOLLARS PAID INTO THE SYSTEM BUT RATIONING THOSE DOLLARS IS DONE BY HMOS AND BY ALLIANCE OFFICIALS THEMSELVES HMOS HAVE A TRACK RECORD OF TIGHTLY CONTROLLING THE USE OF TESTS AND EXPENSIVE DRUGS LIMITING PATIENT ACCESS TO DOCTORS THROUGH GATEKEEPERS RESTRICTING PATIENT CHOICE OF PHARMACIES AND HOSPITALS AND PENALIZING PATIENTS WHO GET NONEMERGENCY CARE OUTSIDE THE HMO NETWORK DESPITE THESE COST CONTROLS IF HMOS SEE MEDICAL SPENDING EXCEEDING THE PERCAPITA LIMITS SET BY THE NATIONAL HEALTH BOARD THE BILL REQUIRES THEM TO CUT PAYMENTS TO DOCTORS STAFF AND HOSPITALS TO STAY WITHIN BUDGET PAGES 1001 1003 WHAT MOST OF US MEAN BY FEEFORSERVICE INSURANCE WHICH ALLOWS US TO CHOOSE OUR DOCTORS AND GET A SECOND OPINION WHEN WE WANT ONE WILL BE HARD TO BUY THE BILL OUTLAWS HEALTH PLANS THAT WOULD PUSH THE REGION ABOVE ITS AVERAGE PREMIUM CEILING OR THAT COST MORE THAN 20 ABOVE THE AVERAGE PLAN MOST FEEFORSERVICE IS TOO EXPENSIVE TO QUALIFY PAGES 129 184 WHAT THE BILL CALLS FEEFORSERVICE IS SOMETHING DIFFERENT BECAUSE OF PRICE CONTROLS AND RATIONING WHERE IT IS POSSIBLE TO BUY IT THE ALLIANCE LIMITS WHAT WE CAN PAY OUR OWN DOCTORS THE ALLIANCE POSTS A SCHEDULE OF DOCTORS' FEES AND IT IS ILLEGAL FOR DOCTORS TO ACCEPT MORE PAGES 131 231232 THE CONSEQUENCES OF PRICE CONTROLS ARE PREDICTABLE IN JAPAN WHERE SIMILAR CONTROLS ARE IN PLACE DOCTORS HURRY FROM EXAMINING ROOM TO EXAMINING ROOM SEEING ON AVERAGE 49 PATIENTS A DAY TO COMPENSATE FOR LOW FEES AND TO MAKE ENDS MEET AMERICAN DOCTORS WILL DO THE SAME IN THE US WHEN MEDICARE ADMINISTRATORS FROZE PHYSICIAN REIMBURSEMENT RATES A DECADE AGO DOCTORS COMPENSATED BY STRETCHING OUT TREATMENTS OVER SEVERAL QUICK VISITS TO SEE PATIENTS MORE OFTEN IN A LASTDITCH EFFORT TO MAKE CANADIAN PRICE CONTROLS WORK ONTARIO AND QUEBEC PUT LEGAL LIMITS ON PHYSICIANS' INCOMES TO ELIMINATE THE INCENTIVE TO SEE PATIENTS MORE OFTEN THE CLINTON ADMINISTRATION PROPOSES A SIMILAR STEP PROSPECTIVE BUDGETING ALLIANCE OFFICIALS SET LIMITS ON WHAT INSURERS IN THE REGION CAN PAY ALL PRIVATE PRACTICE DOCTORS FOR THE COMING YEAR IN EACH FIELD OF MEDICINECARDIOLOGY IMMUNOLOGY MENTAL HEALTH ETC IF DOCTORS SEE MORE PATIENTS THAN THE BUDGET ALLOWS INSURERS MUST CUT DOCTORS' PAYMENTS OR DELAY THEM TO ASSURE THAT EXPENDITURES WILL NOT EXCEED THE BUDGET PAGE 134 LIMITING TOTAL PAYMENTS TO PRIVATE PRACTICE PHYSICIANS WILL DISCOURAGE UNNECESSARY APPOINTMENTS BUT WHAT ABOUT GENUINE NEED FROM MARCH 1987 TO MARCH 1988 AIDS CASES IN NEW YORK HOSPITALS SURGED 50 UNDER THE CLINTON PLAN INSURERS WOULD HAVE BEEN REQUIRED TO STOP PAYMENTS TO DOCTORS CARING FOR THESE PATIENTS TO KEEP CONTROLS TIGHT THE BILL MAKES DOCTORS REPORT EVERY PATIENT VISIT TO A NATIONWIDE ELECTRONIC DATA BANK STORING THE MEDICAL HISTORIES OF ALL AMERICANS PAGE 232 ON THE ISSUE OF PRIVACY THE BILL OFFERS DOUBLE TALK ALL DISCLOSURES OF INDIVIDUALLY IDENTIFIABLE HEALTH INFORMATION SHALL BE RESTRICTED TO THE MINIMUM AMOUNT OF INFORMATION NECESSARY TO ACCOMPLISH THE PURPOSE FOR WHICH THE INFORMATION IS DISCLOSED PAGE 858 DOCTORS PRACTICING OUTSIDE HMOS MUST ALSO AGREE TO UTILIZATION REVIEW A CONTROL COMMON IN HMOS AND HOSPITALS A PATIENT SEEING THE DOCTOR MUST WAIT WHILE A UTILIZATION REVIEW COMPANY CONSIDERS THE SYMPTOMS AND THE PATIENT'S HISTORY PAGE 130 ANOTHER KIND OF RATIONING WILL DEPRIVE PEOPLE OVER 65 OF ACCESS TO NEW CURES THE BILL GIVES THE SECRETARY OF HEALTH AND HUMAN SERVICES AUTHORITY TO SET A CONTROLLED PRICE FOR EVERY NEW DRUG IT REQUIRES THE DRUG MANUFACTURER TO PAY A REBATE TO THE FEDERAL GOVERNMENT ON EACH UNIT SOLD TO MEDICARE PATIENTS AT MARKET PRICE INSTEAD OF THE CONTROLLED PRICE AND IT MAKES ANY DRUG INELIGIBLE FOR MEDICARE REIMBURSEMENT IF THE PRODUCER BALKS AT PAYING THE REBATE PAGES 356366 IN SUCH CASES THE PROPOSED REGULATION WOULD KEEP A NEW DRUG SUCH AS TACRINE A TREATMENT FOR ALZHEIMER'S FROM OLDER PATIENTS AND TIE THE HANDS OF THEIR DOCTORS PRESSURE TO RATION WILL BE GREATEST IN ALLIANCES THAT INCLUDE CITIES INSIDE AN ALLIANCE EVERYONE PAYS THE SAME RATE COMMUNITY RATING FOR HEALTH CARE PAGE 227 AND THE PREMIUMS COLLECTED HAVE TO COVER EVERYONE'S NEEDS INCLUDING THE AIDS PATIENT THE ASSAULT VICTIM AND THE 158000 LOWBIRTHWEIGHT BABY PEOPLE WILL FIGURE OUT THAT YOU PAY THE HIGHEST PREMIUMS AND GET THE LEAST HEALTH CARE IN ALLIANCES THAT INCLUDE INNER CITIES MOREOVER THE BILL SHIFTS MEDICAL COSTS NOW PAID BY THE FEDERAL GOVERNMENT INCLUDING A LARGE PART OF MEDICAID ONTO THE ALLIANCES THE BRUNT WILL BE BORNE BY URBAN ALLIANCES FOR EXAMPLE THE BILL HALTS MEDICAID PAYMENTS TO THE CHRONICALLY ILL AND SUBSIDIES TO URBAN HOSPITALS THAT TREAT THE POOR PAGES 802 812 THE REDUCTIONS IN FEDERAL SPENDING ARE CALLED SAVINGS BY THE CLINTON ADMINISTRATION BUT THE COSTS ARE JUST SHIFTED FROM THE FEDERAL BUDGET TO THE REGIONAL ALLIANCES WHICH MUST PAY FOR EVERYONE'S HEALTH NEEDS OUT OF LOCAL PREMIUMS FOR EXAMPLE THE 49 BILLION ANNUAL COST OF CARING FOR 387450 CHRONICALLY ILL NEW YORK CITY RESIDENTS WILL BE SHIFTED FROM MEDICAID TO LOCAL PREMIUMS THE COST SHIFT AMOUNTS TO A HIDDEN NEW TAX ON URBAN RESIDENTS AND EMPLOYERS MANDATED TO PAY 80 OF THEIR WORKERS' PREMIUMS IT WILL SPUR EMPLOYERS TO ABANDON CITIES THE HEALTH SECURITY BILL IS DANGEROUS BECAUSE IT CUTS OFF FUNDS FOR MEDICAL CARE WITHOUT CONSIDERING OUR AGING POPULATION AND THE SOCIAL PROBLEMS THAT MAKE HEALTH CARE NEEDS GROW PRICE CONTROLS ON PREMIUMS WILL MEAN TOO LITTLE MONEY FOR THE SICK LONG WAITS FOR TREATMENT AND RATIONING PRICE CONTROLS ON DOCTORS' FEES AND REGULATIONS TYING DOCTORS' HANDS WILL LIMIT THE CARE DOCTORS CAN GIVE PATIENTS PRICE CONTROLS ON NEW DRUGS WILL WITHHOLD EFFECTIVE MEDICATION FROM PEOPLE OVER 65 IN CITIES WHERE PREMIUMS WILL BE STRETCHED THINNEST TO OFFSET MEDICAID CUTBACKS PEOPLE WILL FACE THE SEVEREST REDUCTIONS IN ACCESS TO THE MEDICAL CARE THEY NEED PUBLIC DEBATE ON THE PRESIDENT'S BILL HAS FOCUSED ON COST BUT THE CRITICAL ISSUE IS ACCESS MS MCCAUGHEY IS A FELLOW AT THE MANHATTAN INSTITUTE 9311220059 931122 ECONOMY US TO OFFER INCENTIVE DEAL TO NORTH KOREA PLAN DISCUSSED AT APEC IS AIMED AT STOPPING NUCLEARARMS PROGRAM BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE THE CLINTON ADMINISTRATION IS SET THIS WEEK TO OFFER NORTH KOREA A PACKAGE OF INCENTIVES IF IT AGREES TO STOP DEVELOPING A NUCLEARWEAPONS PROGRAM AND PERMITS A RESUMPTION OF INTERNATIONAL INSPECTIONS PRESIDENT CLINTON DISCUSSED THE PLAN WITH LEADERS FROM SOUTH KOREA CHINA AND JAPAN DURING A THREEDAY ASIAPACIFIC ECONOMIC COOPERATION FORUM HELD HERE AND OFFICIALS SAID THOSE NATIONS SUPPORT THE US MOVE TOP US OFFICIALS HAD BEEN DISCUSSING THE PLAN FOR SEVERAL WEEKS BUT MR CLINTON DIDN'T SIGN OFF ON IT UNTIL LAST WEEK THE DELICATE ISSUE OF NORTH KOREA'S NUCLEAR PROGRAM WAS ONE OF SEVERAL DISCUSSED ON THE SIDELINES OF THE ANNUAL MINISTERIAL MEETING OF THE 17MEMBER APEC GROUP THE SESSION ENDED WITH AN INFORMAL SUMMIT MEETING ON A SECLUDED PUGET SOUND ISLAND ON A GRAY DAY THAT PRODUCED EXPRESSIONS OF BRIGHT HOPES FOR CLOSER ECONOMIC TIES THE SUMMIT WHICH WAS AN INNOVATION SUGGESTED BY PRESIDENT CLINTON THIS YEAR'S HOST WILL BE REPEATED NEXT YEAR IN INDONESIA AS APEC MOVES SLOWLY TOWARD ESTABLISHING AN ECONOMIC IDENTITY FOR THE NATIONS THAT SPAN THE PACIFIC RIM THROUGHOUT HIS STAY HERE MR CLINTON STRESSED THE IMPORTANCE OF EXPANDING INTERNATIONAL TRADE TO FUEL DOMESTIC ECONOMIES CREATING JOBS AND OPPORTUNITIES FOR OUR PEOPLE AT HOME REQUIRES US TO BE ENGAGED ABROAD SO THAT WE CAN OPEN FOREIGN MARKETS TO OUR EXPORTS AND OUR BUSINESSES HE SAID IN A SPEECH HERE MUCH OF WHAT ASIA NEEDS TO CONTINUE ON ITS GROWTH PATTERN ARE GOODS AND SERVICES IN WHICH WE ARE STRONG HE ADDED THE US ANNOUNCED LAST WEEK THAT IT HAD AGREED TO ALLOW THE SALE OF A CRAY RESEARCH INC SUPERCOMPUTER TO CHINA WHILE US OFFICIALS INSISTED THAT THE SALE WAS FOR HUMANITARIAN REASONS THE SUPERCOMPUTER IS USED TO PREDICT WEATHER CONDITIONS MR CLINTON ADDED THAT IT ALSO WAS MEANT AS AN IMPORTANT INDICATION THAT WE ARE WILLING TO WORK WITH THE CHINESE BUT A MEETING HE HELD HERE WITH CHINESE PRESIDENT JIANG ZEMIN WHOSE NATION IS THE WORLD'S FASTESTGROWING ECONOMY UNDERSCORES THAT THERE SOMETIMES CAN BE TENSIONS BETWEEN AMERICA'S VALUES AND ITS ECONOMIC INTERESTS FULFILLING A CAMPAIGN PROMISE MR CLINTON SAID LAST JUNE THAT HE WOULDN'T RENEW CHINA'S TRADING STATUS WITH THE US NEXT YEAR IF THERE AREN'T SIGNIFICANT IMPROVEMENTS IN CHINA'S HUMANRIGHTS BEHAVIOR AND OTHER ACTIVITIES IN HIS MEETING WITH MR JIANG MR CLINTON EMPHASIZED THE NEED FOR EARLY CONCRETE PROGRESS ON ASPECTS OF CHINESE POLICY THAT ARE OF DEEP CONCERN TO THE AMERICAN PEOPLE HUMAN RIGHTS TRADE AND WEAPONS PROLIFERATION THE CHINESE LEADER DIDN'T OFFER ANY NEW PROMISES INSTEAD HE LECTURED MR CLINTON ON THE IMPORTANCE OF NOT INTERFERING IN OTHER NATIONS' DOMESTIC AFFAIRS THERE WAS REALLY NO GREAT ACCOMPLISHMENT AT THE MEETING EXCEPT THE MEETING ITSELF WHEN THE PRESIDENT OF CHINA MEETS THE PRESIDENT OF THE UNITED STATES FOR THE FIRST TIME THAT'S POSITIVE IN AND OF ITSELF SECRETARY OF STATE WARREN CHRISTOPHER SAID YESTERDAY ON ABC NEWS' THIS WEEK WITH DAVID BRINKLEY NOBODY THINKS THAT IS CHINA'S FINAL WORD ON THE SUBJECT NEITHER SIDE WANTS TO SEE THE TWO COUNTRIES' RELATIONSHIP INTERRUPTED CHINA HAS A TRADE SURPLUS APPROACHING 20 BILLION WITH THE US AND AMERICAN COMPANIES SEE VAST MARKETS IN CHINA AS A RESULT OVER THE NEXT FEW MONTHS US OFFICIALS SAID THERE WILL BE A SERIES OF HIGHLEVEL MEETINGS BETWEEN WASHINGTON AND BEIJING TO TRY TO FIND A BALANCE BETWEEN WHAT CHINA CAN LIVE WITH POLITICALLY AND MR CLINTON'S CALL FOR SIGNIFICANT PROGRESS US OFFICIALS SAID THAT IF THERE ARE SIGNS OF MOVEMENT BY BEIJING SECRETARY CHRISTOPHER MIGHT VISIT CHINA IN LATE WINTER OR EARLY SPRING THE US ALREADY HAS BEGUN A CAMPAIGN OF COMPREHENSIVE ENGAGEMENT WITH CHINA FOLLOWING A DETERIORATION OF RELATIONS SINCE LAST SUMMER THE SUPERCOMPUTER SALE IS CONSISTENT WITH THIS DRIVE NEVERTHELESS IT'S CLEAR THAT BOTH SIDES ARE NOW INVOLVED IN A CATANDMOUSE GAME TO PROBE EACH OTHER'S DOMESTIC WEAKNESSES BOTH THE US AND CHINA SUGGESTED THAT EACH COULD EXERT ECONOMIC LEVERAGE ON THE OTHER MR CLINTON REMARKED POINTEDLY THAT AFTER ALL THIS YEAR WE WILL PURCHASE ABOUT A THIRD OF THE TOTAL CHINESE EXPORTS AND CHINA'S FOREIGN MINISTER QIAN QICHEN IN A NEWS BRIEFING ASSERTING THAT USCHINA TRADE SERVICES BOTH NATIONS SAID WE WANT TO BUY MORE PRODUCTS WE'RE NOT INTERESTED IN THE ORDINARY TYPE OF PRODUCTS WE'RE INTERESTED IN HIGHTECH PRODUCTS CONCERNING ITS POLICY ON NORTH KOREA US OFFICIALS STILL WERE HAMMERING OUT DETAILS OVER THE WEEKEND OF THE PLAN WHICH ESSENTIALLY OFFERS TO SUSPEND A JOINT USSOUTH KOREAN MILITARY EXERCISE SLATED FOR NEXT YEAR AND BEGIN A THIRD ROUND OF HIGHLEVEL US TALKS WITH NORTH KOREA IN EXCHANGE NORTH KOREA WOULD AGREE TO THE REGULAR INSPECTIONS OF ITS NUCLEAR FACILITIES THAT IT BROKE OFF IN FEBRUARY AND AN EXCHANGE OF ENVOYS WITH SOUTH KOREA TO DISCUSS DENUCLEARIZATION ISSUES A LATER UNSPECIFIED COMPREHENSIVE PACKAGE WOULD INCLUDE ECONOMIC AID FOR NORTH KOREA FROM THE US JAPAN AND SOUTH KOREA AND ULTIMATELY POSSIBLE DIPLOMATIC RELATIONS BETWEEN WASHINGTON AND PYONGYANG ONCE THE US WAS SATISFIED WITH NORTH KOREA'S BEHAVIOR MR CHRISTOPHER DIDN'T MENTION THESE PLANS IN HIS TELEVISION APPEARANCE YESTERDAY BUT DID SAY THAT WE'RE VERY DETERMINED TO GO FORWARD WITH THE INSPECTION PROGRAM THAT'S REQUIRED UNDER INTERNATIONAL LAW HE ADDED I THINK WE'RE GOING TO TRY TO ACHIEVE THAT THROUGH NEGOTIATION THROUGH DIPLOMATIC MEANS AT THE END OF ITS MEETING APEC ISSUED A STATEMENT SAYING ITS MEMBERS WOULD BE WILLING TO REDUCE OR ELIMINATE CERTAIN TARIFFS AS PART OF AN OVERALL PLAN TO SPUR FALTERING WORLDTRADE TALKS THE GROUP ALSO CALLED FOR NEGOTIATORS AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO COMPLETE WORK ON THE SOCALLED URUGUAY ROUND BY DEC 15 THE APEC ACTION FOLLOWS A PACT REACHED IN JULY BY THE US EUROPEAN COMMUNITY JAPAN AND CANADA WHICH SAID THEY WOULD BE WILLING TO REDUCE TARIFFS ON SEVERAL PRODUCTS INCLUDING CONSTRUCTION EQUIPMENT PHARMACEUTICALS BEER AND DISTILLED SPIRITS AS PART OF THE WORLDTRADE TALKS APEC COUNTRIES ENDORSED THIS AGREEMENT AND ADDED PRODUCTS SUCH AS ELECTRONICS PAPER WOOD NONFERROUS METALS AND SCIENTIFIC EQUIPMENT DESPITE THE SHOW OF UNITY THOUGH APEC MEMBERS STILL ARE RELUCTANT TO FORM A TIGHTKNIT ORGANIZATION LIKE COMPARABLE ONES IN EUROPE THE GROUP FOR EXAMPLE WASN'T ABLE TO AGREE ON A PLAN TO BEGIN DISCUSSIONS ON A FREETRADE ZONE FOR APEC MEMBERS INDEED WHEN ASKED IN AN INTERVIEW OVER THE WEEKEND WHAT HE HOPED THE HEAD OF STATES' SUMMIT WOULD PRODUCE PHILIPPINE PRESIDENT FIDEL RAMOS ANSWERED I HOPE WE WILL ALL EXCHANGE TELEPHONE NUMBERS AND FAX NUMBERS 9311220058 931122 HOUSE BILL SEEKS TOUGH REQUIREMENTS FOR FIRMS THAT COMPILE CREDIT RECORDS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSE SUBCOMMITTEE APPROVED A BILL DESIGNED TO IMPOSE TOUGH NEW REQUIREMENTS ON COMPANIES THAT COMPILE INDIVIDUALS' CREDIT RECORDS THE HOUSE CONSUMER CREDIT AND INSURANCE SUBCOMMITTEE VOTED 1712 ALONG PARTY LINES FOR THE MEASURE WITH DEMOCRATS IN THE MAJORITY THE BILL WOULD REQUIRE CREDIT BUREAUS TO REPORT MORE PRECISELY ON PEOPLE'S CREDIT RECORDS AND TO INVESTIGATE COMPLAINTS AND DELETE ADVERSE ENTRIES THAT CANNOT BE VERIFIED WITHIN 30 DAYS IT ALSO WOULD LIMIT THE SCOPE OF THE INFORMATION THOSE COMPANIES MAY REPORT FOR INSTANCE IT WOULD BAR REPORTS ON HOW CONSUMERS SPEND THEIR MONEY FINALLY IT WOULD PREVENT EMPLOYERS FROM GETTING WORKERS' CREDIT REPORTS WITHOUT THE EMPLOYEES' CONSENT THE BILL NOW GOES TO THE FULL HOUSE BANKING COMMITTEE SIMILAR BUT LESS STRINGENT LEGISLATION IS PENDING IN THE SENATE LAST YEAR A CREDITREPORTING MEASURE WAS NARROWLY DEFEATED ON THE HOUSE FLOOR BUSINESSES OPPOSED THAT MEASURE BECAUSE IT WOULD HAVE MAINTAINED A CURRENT REQUIREMENT THAT THE FEDERAL LAW PREEMPT STATE LAWS EXCEPT FOR STATES SUCH AS NEW YORK WHOSE STATUTES ARE TOUGHER THAN THE FEDERAL LAW THE CURRENT HOUSE BILL ALSO WOULD CONTINUE THE CURRENT PREEMPTION PROVISION IN ADDITION IT WOULD A REQUIRE THAT FINANCE COMPANIES DEPARTMENT STORES AND OTHER BUSINESSES THAT PROVIDE THE BASIC CREDIT DATA FOR CREDIT REPORTING FIRMS MEET THE SAME ACCURACY STANDARDS SET FOR THE CREDIT BUREAUS THE MEASURE ALSO WOULD REQUIRE CREDIT REPORTS TO BREAK DOWN EACH CONSUMER'S CREDIT RECORD SUFFICIENTLY TO FACILITATE CHANGES IT HAS BEEN IMPOSSIBLE FOR CONSUMERS TO CORRECT THE REPORTS BECAUSE THEY BUNDLE THE INFORMATION SAID NANCY MATHIS A SPOKESWOMAN FOR THE SUBCOMMITTEE THE BILL WOULD ALLOW CONSUMERS TO GET ONE FREE CREDIT REPORT ON THEMSELVES EACH YEAR AND ADDITIONAL ONES FOR A MAXIMUM 8 EACH IN SUPPORT OF THE BILL THE SUBCOMMITTEE CITED THE CASE OF A KENTUCKY BANK LENDING OFFICER WHO TRIED FOR A YEAR TO GET AN ERRONEOUS REPORT CORRECTED THE REPORT CONFUSED HER WITH ANOTHER WOMAN WITH A SIMILAR NAME WHO HAD A POOR CREDIT RECORD THE KENTUCKY WOMAN WAS DENIED CREDIT TO BUY A HOUSE MEANWHILE HER EMPLOYER GOT A COPY OF HER CREDIT RECORD AND FIRED HER THE CREDIT BUREAU THEN SOUGHT TO CORRECT THE RECORD BY WIPING OUT ALL ENTRIES GOOD OR BAD A MISTAKEN ENTRY CAN TURN AN HONEST CONSUMER INTO A CREDIT DEADBEAT SAID REP JOSEPH KENNEDY D MASS THE SUBCOMMITTEE CHAIRMAN SEPARATELY ANOTHER HOUSE BANKING SUBCOMMITTEE APPROVED LEGISLATION AIMED AT OPENING FOREIGN FINANCIAL MARKETS TO US FIRMS REP BARNEY FRANK D MASS CHAIRMAN OF THE TRADE AND MONETARY POLICY SUBCOMMITTEE SAID THE ACTION SENDS A STRONG SIGNAL TO US TRADING PARTNERS THAT THE US OPPOSES DISCRIMINATION AGAINST AMERICAN FINANCIAL COMPANIES THE MEASURE WOULD GIVE THE TREASURY SECRETARY POWER TO IMPOSE SANCTIONS AGAINST FIRMS FROM NATIONS THAT DON'T GIVE US COMPANIES FULL ACCESS TO THEIR MARKETS 9311220057 931122 CORRECTIONS & AMPLIFICATIONS SENATE LEGISLATION BARRING THE TRANSFER OR POSSESSION OF SEMIAUTOMATIC ASSAULT WEAPONS WOULDN'T APPLY TO FIREARMS LEGALLY POSSESSED BEFORE THE LAW TOOK EFFECT AN ARTICLE THURSDAY ON THE LEGISLATION DIDN'T SPECIFY THAT THE BAN ON POSSESSION APPLIED ONLY TO GUNS ACQUIRED IN THE FUTURE AMX INTERNATIONAL INC A DEFUNCT DALLAS ENERGY COMPANY MENTIONED IN WEDNESDAY'S LEGAL BEAT COLUMN IS UNRELATED TO AMX INTERNATIONAL INC A WASHINGTON MANAGEMENTANDTECHNOLOGY CONSULTING COMPANY WITH AN OFFICE IN DALLAS MARRIOTT INTERNATIONAL INC'S NEW SENIOR VICE PRESIDENT AND GENERAL COUNSEL STEPHEN A WEST PREVIOUSLY WAS VICE PRESIDENT AND DEPUTY GENERAL COUNSEL IN THURSDAY'S WHO'S NEWS COLUMN IT WAS INCORRECTLY STATED THAT HE HAD BEEN PRESIDENT AND DEPUTY GENERAL COUNSEL BRITISH GAS PLC POSTED A THIRDQUARTER NET LOSS OF 225 MILLION 332 MILLION ON A HISTORICALCOST BASIS AN ARTICLE FRIDAY ERRONEOUSLY STATED THAT THE LOSS WAS ON A REPLACEMENTCOST BASIS 9311220056 931122 WHAT'S NEWS WORLDWIDE THE US INTENDS TO OFFER NORTH KOREA INCENTIVES TO HALT ITS NUCLEAR PROGRAM THE PROPOSAL STILL BEING HAMMERED OUT OFFERS TO SUSPEND A USSOUTH KOREAN MILITARY EXERCISE SLATED FOR NEXT YEAR AND TO BEGIN A THIRD ROUND OF US TALKS WITH NORTH KOREA IN EXCHANGE PYONGYANG WOULD PERMIT A RESUMPTION OF INSPECTIONS OF ITS NUCLEAR SITES AND WOULD EXCHANGE ENVOYS WITH SEOUL TO DISCUSS NUCLEARRELATED ISSUES CLINTON DISCUSSED THE PLAN WITH LEADERS FROM SOUTH KOREA CHINA AND JAPAN DURING THE ASIAPACIFIC ECONOMIC COOPERATION FORUM CLINTON IN A MEETING WITH CHINESE LEADER JIANG EMPHASIZED THE NEED FOR PROGRESS ON HUMAN RIGHTS TRADE AND WEAPONS CURBS JIANG REPLIED THAT ONE NATION SHOULDN'T INTERFERE IN ANOTHER'S DOMESTIC AFFAIRS CONGRESS IS EXPECTED TO ADJOURN AS EARLY AS TODAY THE HOUSE WAS STRUGGLING TO PASS A CAMPAIGNFINANCE BILL AND HEADED FOR A FIGHT TODAY OVER PROPOSED BUDGET CUTS MEANWHILE SPONSORS OF THE BRADY GUNCONTROL BILL PASSED SATURDAY BY THE SENATE SOUGHT TO RECONCILE THE HOUSE AND SENATE VERSIONS SEN PACKWOOD IS BEING INVESTIGATED BY THE JUSTICE DEPARTMENT FOR HIS DEALINGS WITH A LOBBYIST FOR MITSUBISHI ELECTRIC THE OREGON REPUBLICAN ALREADY BATTLING SEXHARASSMENT CHARGES HAD CONSIDERED RESIGNING HIS LAWYER SAID BUT PACKWOOD CHANGED HIS MIND AFTER GETTING A JUSTICE DEPARTMENT SUBPOENA A GOP CONSULTANT'S TESTIMONY APPEARS TO HAVE LEFT DEMOCRATS WITH LITTLE HARD EVIDENCE TO SUBSTANTIATE REPORTS THAT MONEY WAS USED TO SUPPRESS BLACK VOTES IN NEW JERSEY'S GUBERNATORIAL ELECTION STILL DEMOCRATS MAY PURSUE ROLLINS'S STATEMENTS CONTAINING REFERENCES TO STRATEGIES TO INFLUENCE BLACK MINISTERS THE CIA HAS WARNED CLINTON HE COULD FACE A DISASTER IN CUBA AT ANY TIME IN A CLASSIFIED REPORT ISSUED IN AUGUST THE AGENCY CITES THE POTENTIAL FOR SERIOUS INSTABILITY THAT WOULD CAUSE CUBANS TO FLEE TO THE US EXIT POLL RESULTS IN ITALY SHOWED NEOFASCISTS FORMER COMMUNISTS AND CANDIDATES FROM AN AUTONOMYMINDED PARTY IN THE NORTH MAKING GAINS IN KEY MAYORAL ELECTIONS YESTERDAY THE ELECTIONS WHICH COME AFTER A WAVE OF POLITICAL SCANDALS APPEAR TO HAVE DEALT A SETBACK TO MAINSTREAM PARTIES AHEAD OF AN EXPECTED NATIONAL VOTE IN 1994 REPETITIVE STRESS INJURIES ARE RISING SO QUICKLY THAT THE ADMINISTRATION PLANS TO PROPOSE A WORKPLACE ERGONOMIC STANDARD WITHIN 10 MONTHS OSHA'S NEW CHIEF SAID THE GROWTH OF INJURIES SUCH AS CARPAL TUNNEL SYNDROME HAS PROMPTED THE AGENCY TO ACT UN CONVOYS REMAINED STALLED IN BOSNIA FOR THE THIRD DAY DESPITE PLEDGES FROM WARRING FACTIONS TO LET THEM THROUGH THE PROBLEMS FACING AID CONVOYS WILL BE DISCUSSED TODAY BY EUROPEAN FOREIGN MINISTERS THE EC ALSO PLANS TO SIGNAL BELGRADE THAT INTERNATIONAL SANCTIONS COULD BE SUSPENDED IF MUSLIMS ARE CEDED MORE LAND ISRAEL'S RABIN COOLED EXPECTATIONS FOR A BREAKTHROUGH IN TALKS WITH ANY ARAB NEIGHBORS AND CALLED ON SYRIA TO TAKE PART IN BACKCHANNEL DISCUSSIONS RETURNING FROM THE US AND CANADA THE PRIME MINISTER SAID HE HAD ASKED WASHINGTON TO MAINTAIN ITS 3 BILLION IN ANNUAL AID TO ISRAEL A RUSSIANMADE JETLINER CRASHED INTO A HILL IN SOUTHWESTERN MACEDONIA KILLING ALL BUT ONE OF THE 116 PEOPLE ON BOARD OFFICIALS SAID MOST OF THE PASSENGERS ON THE CHARTER FLIGHT FROM GENEVA WERE YUGOSLAV CITIZENS THE CAUSE OF THE CRASH WHICH OCCURRED LATE SATURDAY WASN'T IMMEDIATELY KNOWN THE SOLE SURVIVOR WAS A 20YEAROLD MAN BRITAIN AND IRELAND ARE COMMITTED TO ESTABLISHING A PEACE PROCESS IN NORTHERN IRELAND BUT THE WINDOW OF OPPORTUNITY FOR PROGRESS MAY BE CLOSING IRISH PRIME MINISTER REYNOLDS SAID HE STRESSED THAT THE APPARENT WILLINGNESS BY THE IRISH REPUBLICAN ARMY TO COMPROMISE MUST BE SEIZED UPON BEFORE CIRCUMSTANCES CHANGE NIGERIA'S LABOR UNIONS CALLED OFF THEIR NATIONWIDE STRIKE AFTER THE NEW MILITARY DICTATORSHIP APPARENTLY TRYING TO WIN PUBLIC SUPPORT AGREED TO SLASH PRICES OF GASOLINE KEROSENE AND DIESEL FUEL THE CIVILIAN GOVERNMENT WHICH WAS OUSTED WEDNESDAY IN A MILITARY COUP HAD RAISED FUEL PRICES AS MUCH AS 1000 JUST TWO WEEKS AGO 9311220055 931122 TECHNOLOGY BRIEF LSI LOGIC CORP DEVELOPMENT SET FOR CHIP FOR UP TO 1000 TV CHANNELS LSI LOGIC CORP MILPITAS CALIF AND ZENITH ELECTRONICS CORP ARE TEAMING UP TO DEVELOP CABLE TELEVISION CONVERTERS THAT CAN DELIVER AS MANY AS 1000 CHANNELS TO THE HOME THE TWO COMPANIES ARE TO ANNOUNCE TODAY THAT THEY WILL JOINTLY DEVELOP A SPECIALIZED MICROCHIP THAT WILL BE USED IN ZENITH ELECTRONICS SETTOP CONVERTERS SCHEDULED FOR INTRODUCTION NEXT YEAR THE CHIP USES A TECHNOLOGY CALLED 16LEVEL VESTIGIAL SIDEBAND THAT INCREASES THE AMOUNT OF DATA THAT CAN BE CARRIED OVER CABLE SYSTEMS ONE CONVENTIONAL CABLE CHANNEL COULD DELIVER AS MANY AS 23 MOVIES OR NINE LIVE VIDEO PROGRAMS IN COMPRESSED DIGITAL FORM THE COMPANIES SAID MOST CABLE COMPANIES IN THE PAST HAVE PROPOSED INCREASING THEIR CAPACITY TO ABOUT 500 CHANNELS ZENITH ELECTRONICS GLENVIEW ILL SAID IT PLANS TO LICENSE ITS TECHNOLOGY TO OTHER MAKERS OF CABLE CONVERTERS WHO MAY BUY THE CHIPS FROM LSI 9311220054 931122 COMMODITIES CHINA'S CREDIT CRUNCH CRIPPLES CONSUMPTION OF RAW MATERIALS BOTH THERE AND IN JAPAN BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON CHINA'S CREDIT CRUNCH IS DENTING DEMAND FOR COMMODITIES CHINESE IMPORTS OF RAW MATERIALS RANGING FROM STEEL AND INDUSTRIAL METALS TO OIL AND GOLD ARE SINKING METALS DEALERS AND ANALYSTS SAY MEANWHILE CHINA'S SLIDING IMPORTS OF REFINED AND MANUFACTURED GOODS ARE HURTING JAPANESE INDUSTRIES THAT PRODUCE THEM THIS IN TURN HAS SAPPED JAPAN'S OWN TRADITIONALLY STRONG CONSUMPTION OF COMMODITIES FOR YEARS DEMAND FOR INDUSTRIAL COMMODITIES FROM CHINA JAPAN AND OTHER ASIAN COUNTRIES HAS SUPPORTED WORLD COMMODITY MARKETS FOR INSTANCE THESE COUNTRIES ARE BIG CONSUMERS OF INDUSTRIAL OR BASE METALS SUCH AS COPPER AND THEIR PURCHASES OF THESE COMMODITIES HISTORICALLY HAVE SUPPORTED THEIR PRICES THIS YEAR HOWEVER THE PRICES OF BASE METALS ARE IN THE DUMPS AS IS THE PRICE OF CRUDE OIL ONE REASON IS THE WEAKNESS OF DEMAND FROM THE FAR EAST ANALYSTS SAY FOR INSTANCE DURING THE BOOM WHICH LASTED UNTIL THE FIRST QUARTER OF THIS YEAR CHINESE DEMAND UNDERPINNED THE WORLD STEEL MARKET SAYS PHILIP TOMLINSON MANAGER OF THE STEEL DIVISION AT COMMODITY RESEARCH UNIT A CONSULTING FIRM THAT REGULARLY SENDS TEAMS TO CHINA NOW THE CHINESE STEEL BUBBLE IS WELL AND TRULY OVER CHINA'S STEEL DEMAND COLLAPSED IN THE SECOND QUARTER OF THIS YEAR MR TOMLINSON SAYS AND IS UNLIKELY TO RECOVER FOR MORE THAN A YEAR MOREOVER CHINA'S IMPORTS OF COPPER NICKEL ZINC AND OTHER METALS FELL SHARPLY IN RECENT MONTHS SAYS A LONDON METALS TRADER WHO DOES BUSINESS WITH CHINA ONE REASON HE SAYS ARE THE LARGE STOCKS OF THESE COMMODITIES THAT CHINA ALREADY MAINTAINS IN 1992 CHINA BOUGHT MORE OF THESE BASE METALS THAN THE COUNTRY'S INDUSTRY NEEDED ANALYSTS SAY NOW LARGE STOCKS ARE BEING HELD AT PORTS SUCH AS SHANGHAI AND CHINA HAS LITTLE NEED TO BUY MORE OF THEM COMMODITY RESEARCH UNIT ESTIMATES THAT CHINESE IMPORTS OF COPPER COULD DECLINE SHARPLY THIS YEAR FROM ABOUT 300000 TONS IN 1992 MAINLY BECAUSE THE COUNTRY IS ALREADY HOLDING SUFFICIENT STOCKS NICKEL PURCHASES MEANWHILE ARE PROJECTED TO SLIDE TO 10000 TONS FROM 25000 TONS LAST YEAR OIL IMPORTS ALSO FELL SHARPLY IN THE THIRD QUARTER DEALERS SAY ALTHOUGH THERE WAS SOME IMPROVEMENT IN OCTOBER COURTAULDS PLC THE UNITED KINGDOM CHEMICAL AND FIBERS GROUP SAYS THAT ACRYLIC AND OTHER SYNTHETICFIBER SALES TO CHINA ALSO WERE DOWN PURCHASES OF PRECIOUS METALS BY CHINA ARE DOWN AS WELL AFTER A STRONG YEAR IN 1992 ANALYSTS SAY GOLD TRADE WITH CHINA BOOMED IN 1992 AND THE FIRST THREE MONTHS IN 1993 SAYS ANDREW SMITH PRECIOUS METALS ANALYST AT UNION BANK OF SWITZERLAND A BANK WITH LINKS TO CHINA ALMOST 100 METRIC TONS OF GOLD WERE SOLD TO CHINA IN THE FIRST QUARTER HE SAYS BY THE THIRD QUARTER HOWEVER NET IMPORTS HAD SLUMPED TO LESS THAN 30 TONS HE SAYS THOUGH THE ASIAN COUNTRY'S PURCHASES OF GOLD ARE REVIVING A BIT IN THE PRESENT QUARTER MR SMITH ESTIMATES THAT CHINA'S TOTAL GOLD IMPORTS WILL TUMBLE TO 240 TONS THIS YEAR FROM 345 TONS LAST YEAR THE DECLINE IN CHINA'S RAW MATERIALS PURCHASES IS PARTLY THE RESULT OF AN AUSTERITY CAMPAIGN IN THE COUNTRY TO COOL AN OVERHEATED ECONOMY COMMODITY DEALERS SAY THE JUNE DEVALUATION OF ITS CURRENCY THE RENMINBI RAISED THE COSTS OF IMPORTED MATERIALS MEANWHILE A CREDIT SQUEEZE HIT INDUSTRIES SUCH AS CONSTRUCTION THAT NEEDED TO BUY BIG QUANTITIES OF STEEL OR OTHER METALS RESTRICTIONS ON FOREIGN EXCHANGE ALSO CRIMPED STATE ORGANIZATIONS THAT IMPORT COMMODITIES ANALYSTS SAY AND THIS YEAR'S SHARP INCREASES IN THE PRICES OF GOLD AND OTHER PRECIOUS METALS DISCOURAGED THE COUNTRY FROM BUYING THE ECONOMIC READJUSTMENT PROGRAM IS BEGINNING TO REDUCE GROWTH AND INFLATION SAYS GUOCANG HUAN A HONG KONGBASED SPECIALIST ON CHINA AT MORGAN GUARANTY TRUST CO IN A RECENT REPORT MR HUAN SAID THAT FALLING STEEL AND CEMENT PRICES IN THE COUNTRY HELPED LOWER INFLATIONARY PRESSURES DESPITE THE CREDIT SQUEEZE INFLATION WAS STILL AROUND 21 IN SEPTEMBER MR HUAN SAYS WHILE THE ECONOMY GREW BY 13 IN THE THIRD QUARTER ANALYSTS SAY CHINA'S WEAK IMPORTS HAVE HAD A STRONG EFFECT ON COMPANIES IN JAPAN MAINLY STEEL AND METALS REFINERS AND TRADING COMPANIES WHICH ARE ALREADY SUFFERING FROM RECESSION AND AN OVERVALUED YEN JAPANESE IMPORTS OF COPPER ALUMINUM ZINC LEAD NICKEL AND STEEL ARE WELL DOWN DEALERS SAY GOLD PURCHASES ARE SHARPLY LOWER AND DIAMOND DEMAND HAS FALLEN AS WELL OVER THE PAST COUPLE OF YEARS LARGE COMMODITY PURCHASES BY JAPAN AND CHINA HELPED REDUCE THE PAIN OF A COMMODITIESPRICE SLUMP THROUGHOUT THE US AND EUROPE BUT NOW COMMODITY DEMAND IS STRONGER IN THE US THAN IN ASIA ANALYSTS SAY HOPES OF COMMODITY REVIVAL ARE SHIFTING TO WEST FROM EAST SAYS TED ARNOLD LONDON BASED METALS ANALYST AT MERRILL LYNCH & CO NOTING THE REVIVAL IN NORTH AMERICA STILL MR ARNOLD SAYS THERE IS HOPE THAT ASIAN DEMAND FOR INDUSTRIAL COMMODITIES MAY RESURGE WITHIN THE NEXT COUPLE OF YEARS SOME MEASURE OF ECONOMIC RECOVERY IS EXPECTED IN JAPAN IN THE SECOND HALF OF NEXT YEAR AND BECAUSE OF THE CONTINUING GROWTH OF THE CHINESE ECONOMY ITS IMPORTS OF COMMODITIES ARE EXPECTED TO IMPROVE OVER THE LONG TERM AS WELL 9311220052 931122 BUSINESS BRIEF DASSAULT AVIATION SA FRENCH AEROSPACE FIRM SAYS '93 PROFIT COULD RISE SLIGHTLY FRENCH AEROSPACE COMPANY DASSAULT AVIATION SA SAID ITS PROFIT COULD RISE SLIGHTLY THIS YEAR DESPITE A STEEP DECLINE IN REVENUE THE COMPANY REPORTED REVENUE FOR THE FIRST NINE MONTHS OF THIS YEAR DROPPED 25 TO 770 BILLION FRANCS 130 BILLION DASSAULT SAID EARLIER THIS YEAR THAT IT EXPECTS FULLYEAR CONSOLIDATED REVENUE TO COME IN AT AROUND 13 BILLION FRANCS DOWN FROM 164 BILLION FRANCS A YEAR BEFORE STILL A DASSAULT OFFICIAL SAID THAT ESTIMATES IN THE FRENCH PRESS OF A SLIGHT IMPROVEMENT IN GROUP PROFIT THIS YEAR DON'T SEEM UNREASONABLE DASSAULT PREVIOUSLY REPORTED THAT ITS PRETAX PROFIT ROSE 92 IN THE FIRST HALF AFTER PAYMENTS TO MINORITY INTERESTS GROUP SHARE OF THE PRETAX PROFIT FIGURE CAME IN AT 1712 MILLION FRANCS DASSAULT POSTED A GROUP PROFIT OF 3296 MILLION FRANCS IN 1992 UP 25 FROM 1991 9311220051 931122 BUSINESS BRIEF PROCTER & GAMBLE CO MAJORITY STAKE TO BE BOUGHT IN RUSSIAN DETERGENT PLANT PROCTER & GAMBLE CO CINCINNATI SAID IT WILL ACQUIRE A MAJORITY INTEREST IN PO NOVOMOSKOVSKBYTKHIM THE LARGEST DETERGENT MANUFACTURING PLANT IN RUSSIA THE PLANT SITUATED IN NOVOMOSKOVSK 130 MILES SOUTH OF MOSCOW HAS BEEN PRODUCING DETERGENTS FOR P&G FOR ABOUT A YEAR THE RUSSIAN PRIVATIZATION FUND ACCEPTED P&G'S BID TO PURCHASE 14 OF THE BUSINESS'S SHARES P&G ALSO AGREED TO INVEST 50 MILLION IN THE PLANT OVER FIVE YEARS IN EXCHANGE FOR AN ADDITIONAL STAKE P&G SAID THE COMBINED INVESTMENTS WILL GIVE IT A MAJORITY STAKE THE REMAINING SHARES WILL BE OWNED BY WORKERS MANAGEMENT THE PUBLIC AND THE GOVERNMENT P&G SAID THE PLANT WILL FOR NOW FOCUS ON LAUNDRY AND CLEANING PRODUCTS HOWEVER THE AGREEMENT PROVIDES FOR COOPERATION IN A BROADER RANGE OF CONSUMER PRODUCT CATEGORIES 9311220050 931122 WHAT'S NEWS BUSINESS AND FINANCE AMERICAN AIR'S STRIKING FLIGHT ATTENDANTS UNION ASKED THE NATIONAL MEDIATION BOARD TO BRING AN END TO THE FOURDAY WALKOUT AND RESOLVE ITS CONTRACT DISPUTE THE UNION HAS BEEN ABLE TO INFLICT SIGNIFICANT FINANCIAL HARM BUT IT HASN'T BEEN ABLE TO SHUT DOWN THE AIRLINE OR COMPEL MANAGEMENT BACK TO THE BARGAINING TABLE AMR SEEMS TO HAVE THE UPPER HAND A PLAN THAT UAL IS CONSIDERING TO SHED ITS SHORTFLIGHT OPERATIONS WOULD SUBSTANTIALLY RAISE THE CARRIER'S PROFIT AND BOOST ITS MARKET VALUE A REPORT PREPARED FOR UAL'S BOARD SAID THE WHITE HOUSE PLANS TO BEGIN HARD BARGAINING TODAY ON WORLD TRADE TALKS NOW THAT NAFTA CLEARED ITS FINAL HURDLE IN CONGRESS BUT THE EC SAID THE US ISN'T PROPOSING ADEQUATE CUTS IN TARIFFS ON TEXTILES AND APPAREL CANADA'S PRIME MINISTER SAID HE WANTS FURTHER NEGOTIATIONS ON NAFTA THE US TRADE DEFICIT WIDENED TO 109 BILLION IN SEPTEMBER FROM A REVISED 1005 BILLION IN AUGUST BUT THE GAP LOOKS BETTER AND THE COUNTRY APPEARS FAR MORE COMPETITIVE WHEN TRADE IN SERVICES IS CONSIDERED LITTON INDUSTRIES FACES A CRIMINAL PROBE INVOLVING ALLEGED OVERCHARGES ON GYROSCOPE REPAIRS FOR MILITARY AND COMMERCIAL CUSTOMERS ADDING TO TWO SEPARATE GRANDJURY INVESTIGATIONS FOR ALLEGEDLY DEFRAUDING THE PENTAGON THE PRICE OF THE TREASURY'S 30YEAR BOND PLUNGED MORE THAN 1 1/8 POINTS SENDING ITS YIELD UP TO 633 THE HIGHEST LEVEL IN MORE THAN THREE MONTHS MONEY MANAGERS PREDICTED LONGTERM YIELDS WILL RISE THROUGH THE HOLIDAYS BUT COULD DROP IN THE FIRST QUARTER FOUR MIDSIZE EUROPEAN AIRLINES SAID THEY ABANDONED PLANS TO MERGE THEIR COMPANIES INTO A SINGLE CARRIER AFTER BEING UNABLE TO SURMOUNT THEIR DIFFERENCES OVER A US PARTNERSHIP QVC NETWORK PUT PRESSURE ON PARAMOUNT'S BOARD TO CONSIDER ITS HIGHER 107 BILLION OFFER BY ANNOUNCING THAT IT HAD OBTAINED BANK FINANCING VIACOM'S 94 BILLION BID EXPIRES TONIGHT FED MEMBERS ARE DIVIDED OVER HOW MUCH A BANK MUST DO TO OVERCOME DEFICIENCIES IN MINORITYLENDING RECORDS THE RIFT WAS APPARENT AFTER MEMBERS RELEASED EXPLANATIONS OF THEIR VOTES ON AN ACQUISITION APPLICATION BY SHAWMUT WHICH WAS DENIED THE REQUEST THE NASD PROPOSED A RULE TO PROD QUICK SETTLEMENTS IN DISPUTES BETWEEN INVESTORS AND BROKERAGE FIRMS AT&T REPLACED AYER AS ITS PRIMARY AD AGENCY AFTER MORE THAN 75 YEARS FCB/LEBER A FOOTE CONE UNIT WILL ASSUME THE LEAD ROLE IN AT&T'S 200 MILLION CONSUMER LONGDISTANCE ACCOUNT SEPARATELY AT&T PLANS TO RAISE PRICES FOR SOME CALLS A MOVE THAT WILL BOOST OVERALL REVENUE BY ABOUT 336 MILLION COMPANIES ORGANIZED AS S CORPORATIONS WOULD GET HELP IN ATTRACTING INVESTORS SUCH AS VENTURE CAPITALISTS AND PENSION FUNDS UNDER A PROPOSED BILL RUPERT MURDOCH SAID A CLASS OF NEWS CORP SHARES THAT COULD BE WORTH 25 VOTES EACH WOULD BE TRANSFERABLE AFTER OBJECTIONS FROM INVESTORS TRANSAMERICA INTENDS TO PURCHASE THE ASSETS OF TIPHOOK PLC'S CONTAINER DIVISION FOR ABOUT 12 BILLION THE AGREEMENT WOULD EXPAND TRANSAMERICA'S CONTAINER FLEET MAKING IT THE WORLD'S SECONDLARGEST CONTAINER LEASER AFTER GE'S GENSTAR UNIT NEW YORK STOCK EXCHANGE SHORT INTEREST ROSE 35 IN MIDNOVEMBER TO A RECORD 124 BILLION SHARES MERCK'S SHORT INTEREST POSITION SOARED 84 MILLION SHARES TO 341 MILLION SHARES HEWLETTPACKARD'S RICHARD HACKBORN PLANS TO RETIRE NOV 30 AS EXECUTIVE VICE PRESIDENT AND HEAD OF ITS COMPUTER PRODUCTS ORGANIZATION HE IS CREDITED WITH CREATING AND NURTURING HP'S VERY PROFITABLE PRINTER UNIT FEDERAL RESERVE POLICY MAKERS UNANIMOUSLY DECIDED TO HOLD INTEREST RATES STEADY AT THEIR SEPT 21 MEETING THE COMMITTEE SAW NO CHANGE IN THE OUTLOOK FOR MODERATE AND SUSTAINED EXPANSION IN ECONOMIC ACTIVITY BONDS LEHMAN BROTHERS TREASURY INDEX 546073 OFF 5516 COMMODITIES OIL 1656 A BARREL OFF 13 CENTS DOW JONES FUTURES INDEX 13466 UP 083 SPOT INDEX 12347 UP 072 DOLLAR 10845 YEN UP 116 17146 MARKS UP 00018 9311220049 931122 A TOWN IN HOLLAND HAS SHELVED SANTA UNTIL DECEMBER ASSEN THINKS CHRISTMAS COMES TOO EARLY THESE DAYS ITS SINTERKLAAS COMES FIRST BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL ASSEN NETHERLANDS IT'S NOT BEGINNING TO LOOK A LOT LIKE CHRISTMAS IN THIS PROVINCIAL DUTCH TOWN THE HALLS AREN'T DECKED WITH BOUGHS OF HOLLY THE SLEIGH BELLS AREN'T JINGLING THE CAROLERS AREN'T CAROLING AND CHRISTMAS SHOPS DEFINITELY ARE NOT JOLLY FED UP WITH SANTA IN SEPTEMBER AND FROSTY IN EARLY FALL ASSEN TWO WEEKS AGO COMMITTED THE UNTHINKABLE HUMBUG OF THIS COMMERCIAL SEASON IT OUTLAWED ANY SIGN OF CHRISTMAS AND DECLARED SANTA CLAUS PERSONA NON GRATA UNTIL DEC 6 WE HAVE NOTHING AGAINST SANTA CLAUS WE JUST DON'T LIKE HIM IN NOVEMBER SAYS LODEWIJK OSSE CHRISTMAS IS A DECEMBER TRADITION WHEN IT EXPANDS IT BECOMES MEANINGLESS IT'S LIKE HAVING THE EASTER BUNNY COME OUT IN JANUARY THE CHRISTMAS BAN BEGAN AS A JOKE EARLIER THIS MONTH WHEN MR OSSE A CATERER GOT PERMISSION FROM THE CITY TO PUT UP ROAD SIGNS FEATURING A CHRISTMAS TREE WITH A RED SLASH THROUGH IT BUT THE RESPONSE OVERWHELMED ASSEN THE BIG DEPARTMENT STORE TUCKED AWAY ITS CHRISTMAS DISPLAYS AND BANNED CHRISTMAS MUSIC A CLOTHING STORE HUNG SANTA IN EFFIGY WITH THE INSCRIPTION SANTA'S IN THE NOOSE TILL DEC 6 HOLLAND'S LARGEST NEWSPAPER TOOK UP THE CRY AS OTHER DUTCH TOWNS HAILED ASSEN'S EFFORT LITERATURE HASN'T BEEN KIND TO THOSE WHO HAVE DARED TO TAMPER WITH CHRISTMAS LOOK AT SCROOGE AND THE GRINCH BUT ASSEN AT LEAST HAS SINTERKLAAS ON ITS SIDE NOT TO BE CONFUSED WITH THE PROHIBITED SANTA CLAUS SINTERKLAAS IS THE DUTCH NAME OF THE FOURTHCENTURY BISHOP ST NICHOLAS THE PATRON SAINT OF CHILDREN AND SAILORS WHO VISITS HOLLAND EVERY DEC 6 ON A BOAT FROM SPAIN WITH HIS MOORISH SERVANT ZWARTE PIET THEY BRING CHOCOLATES MARZIPAN POEMS AND SMALL GIFTS AND THEY HAVE NOTHING TO DO WITH THE RELIGIOUS HOLIDAY CELEBRATING THE BIRTH OF CHRIST THAT FALLS NEARLY THREE WEEKS LATER BUT WHEN DUTCH SETTLERS WENT TO THE NEW WORLD THE AMERICANS TURNED SINTERKLAAS INTO SANTA CLAUS AND MADE HIM PART OF CHRISTMAS THEY DISROBED THE BISHOP MOVED HIM TO THE NORTH POLE FATTENED HIM UP AND GAVE HIM A TEAM OF REINDEER NOW THIS MUTANT WHOM THE DUTCH CALL THE KERSTMAN OR CHRISTMAS MAN IS BIG IN HOLLAND TOO AND HAS BEEN UPSTAGING SINTERKLAAS A STUDY FOUND THAT ONLY 60 OF THE DUTCH STILL CELEBRATE SINTERKLAAS THE HOLIDAY IS UTTERLY SECULAR NOT RELIGIOUS THE SINTERKLAAS WELCOME IN ASSEN WHICH ONCE DREW 10000 DIPPED TO 300 A COUPLE OF YEARS BACK SINTERKLAAS IS DISAPPEARING LAMENTS JOHN HELSLOOT A FOLKLORE RESEARCHER AT THE MEERTENS INSTITUTE IN AMSTERDAM THIS IS A SAD THING FOR ASSEN A 700YEAROLD TOWN OF 51000 KNOWN BEST FOR ITS ANNUAL MOTORCYCLE RACE LIKE OTHER ETHNIC GROUPS ACROSS EUROPE THE DUTCH HERE HAVE FELT THEIR TRADITIONS TRAMPLED BY EUROPEAN UNITY FREE TRADE AND HOLLYWOOD JURASSIC PARK PLAYS IN THE ASSEN THEATER ASSEN HAS A LASER KARAOKE BAR MY LITTLE BOYS WATCH MTV THE BBC DONALD DUCK BUGS BUNNY AND BEVERLY HILLS 90210 FRETS CHRIS KUIKMAN A CITY OFFICIAL THERE IS A MIXING UP OF TRADITIONS HE SAYS BETWEEN PUFFS ON HIS MARLBORO WHEN THE CORPULENT KERSTMAN BEGAN TO OVERSHADOW SINTERKLAAS ASSEN COULDN'T TAKE IT ANYMORE THERE'S NO ATMOSPHERE IN THE AMERICAN CHRISTMAS IT'S JUST SOME BIG PILE OF LOOT SAYS MARJOLEIN KERKLAAN A SECRETARY FOR 800 YEARS IN HOLLAND SINTERKLAAS WAS REALLY SOMETHING SPECIAL WE WANT HIM BACK CERTAIN RETAILERS HOWEVER DISAGREE INTRATUIN AN ASSEN GARDEN CENTER STARTS HAULING OUT ITS CHRISTMAS STUFF IN JUNEAND NOT ONE PERSON SAYS WE'RE DOING IT TOO EARLY SAYS A TESTY ROEL KLEINE THE MANAGER NOW THE WAREHOUSELIKE STORE IS AWASH IN SANTA'S SURPRISE VIDEOTAPES THOUSANDS OF ORNAMENTS SANTA HATS AND FROSTYTHESNOWMAN TOOTHBRUSHES WE PREFER CHRISTMAS SAYS MR KLEINE WHO IGNORED THE POSTPONEMENT THE BAN HAS NO ENFORCEMENT PROVISIONS THOUGH POLICE DID STAGE A MOCK ARREST OF SANTA FOR TELEVISION CAMERAS IF WE WAITED TO SELL ALL THE CHRISTMAS ARTICLES WE WOULD LOSE A LOT OF MONEY SAYS MR KLEINE IN HIS OFFICE AWAY FROM THE DIN OF CHRISTMAS CHIMES AND A CHORUS OF DOGS BARKING TO JINGLE BELLS LIKE INTRATUIN SOME CUSTOMERS DOUBT THAT ASSEN'S REVOLT WILL LAST IT'S SAD BUT SINTERKLAAS IS JUST NOT DONE ANYMORE SAYS DINEKE WILTENS SHOPPING FOR AN ORNAMENT THE HOLIDAY IS CHRISTMAS BUT THESE DAYS AT LEAST THE KERSTMAN IS ON THE RUN IN ASSEN ALL 10 OUTLETS OF BERTRAM A CLOTHING STORE PUT UP THE NOCHRISTMAS SIGN IN THEIR WINDOWS ANOTHER SIGN IN THE ASSEN STORE VOWS ASSEN WON'T LEAVE SINTERKLAAS IN THE LURCH EVEN GRAND CHIC A LARGEWOMEN'S STORE HAS ZWARTE PIET IN THE WINDOW MR OSSE AND THE REST OF HIS SIXMEMBER COMMITTEE A POLICEMAN A BANKER AND THREE SECRETARIES ALSO REVIVED THE SINTERKLAAS PARADE THIS YEAR THEY RECRUITED 100 ZWARTE PIETS ON STILTS FLOATS AND IN MARCHING BANDS ALONG WITH ASSEN'S 6FOOT6 POLICE CHIEF POSING AS THE BISHOP CHRISTMAS IS PUSHING SINTERKLAAS TO THE BACKGROUND IN ALL OF HOLLAND AND PEOPLE DON'T LIKE IT SAYS HENK DRENT MANAGER OF THE BART SMIT TOY STORE IN ASSEN MR DRENT FESTOONED THE STORE IN ZWARTE PIET AND SINTERKLAAS DESIGNS AND RELEGATED CHRISTMAS TO A SMALL DISPLAY JAN BOEREMA BUYING SINTERKLAAS GIFTS FOR HIS GRANDCHILDREN AGREES SINTERKLAAS HAS TO STAY AND HE WILL IT'S MORE IMPORTANT THAN CHRISTMAS EVEN CHILDREN DON'T MIND DELAYING CHRISTMAS I THINK IT'S A GOOD IDEA BECAUSE SINTERKLAAS IS MORE FUN THAN CHRISTMAS DECLARES MAARTEN KUIKMAN SEVEN YEARS OLD HIS TWIN BROTHER JOOST ADDS AT SINTERKLAAS WE HAVE RHYMES AND SURPRISE PRESENTS AND WE DON'T HAVE THAT AT CHRISTMAS SOON AFTER ASSEN DECLARED ITS CHRISTMAS BAN DE TELEGRAAF HOLLAND'S LARGEST NEWSPAPER RAN A STORY HEADLINED SINTERKLAAS FIGHTS BACK DECLARING THAT ST NICHOLAS IS RISING LIKE A PHOENIX FROM THE ASHES OTHER DUTCH TOWNS ORDERED NOCHRISTMAS SIGNS YELLOW SIGNAL DE TELEGRAAF ALSO REPORTED THAT IN THE TOWN OF ENSCHEDE A GROUP CALLING ITSELF THE DUTCH SINTERKLAAS UNION WAS HANDING OUT YELLOW WARNING CARDS TO STORES THAT SELL CHRISTMAS GOODS BEFORE SINTERKLAAS THOSE WHO VIOLATE THE BAN TWO YEARS RUNNING WILL GET A RED CARD AND FACE A SINTERKLAASUNFRIENDLY BLACKLIST UNTIL DEC 6 THE BULK OF VROOM & DREESMANN'S CHRISTMAS DISPLAY IN ASSEN IS PILED HIGH IN STORAGE CHRISTMAS CHRISTMAS CHRISTMAS SAYS STORE MANAGER ERIC BOS BECKONING TO ROWS OF CRATES STUFFED WITH PLASTIC TREES AND WREATHS V&D THE LARGEST DEPARTMENTSTORE CHAIN IN HOLLAND ORDERED NOCHRISTMAS SIGNS FOR ALL STORES THE NOVEMBER CATALOG HAS THE BISHOP ON THE COVER IT'S GOOD TO SHOW YOUR PRINCIPLES MR BOS SAYS OVER AT VISSERASSEN BV WHICH MAKES THE SINTERKLAAS SIGNS TWO MEN ARE WORKING OVERTIME ON THE 40 TO 60 SIGNS WHICH COME IN EIGHT VARIETIES IT HAS HAD NEARLY 150 ORDERS ONE SIGN FEATURES THE SIMPLE CHRISTMAS TREE WITH A RED SLASH THROUGH IT A NEW SIGN DECLARES A NOPARKING ZONE FOR REINDEER A THIRD SIGN WITH A RED BISHOP ON A HORSE TURNS A BICYCLE PATH INTO A SINTERKLAAS PATH SO IT APPEARS THAT SINTERKLAAS WILL HAVE THE LAST HOHOHO THIS YEAR THERE'S A RENEWAL OF OLD TRADITIONS A DESIRE TO REDISCOVER WHAT WE'VE LOST SAYS GERRIT EERLAND ASSEN'S CULTURAL ALDERMAN I DON'T THINK WE'LL LOSE SINTERKLAAS IN THE END HE SURVIVED FOR HUNDREDS OF YEARS HE WILL FOR ANOTHER HUNDRED 9311220048 931122 BUSINESS BRIEF HALLWOOD CONSOLIDATED RESOURCES AFFILIATE INDONESIAN FIRM JOIN IN OIL RECOVERY PROJECT HALLWOOD CONSOLIDATED RESOURCES CORP DENVER SAID AN AFFILIATED COMPANY HAS JOINED AN ENHANCED OIL RECOVERY PROJECT IN INDONESIA THE AFFILIATE HALLWOOD PETROLEUM INDONESIA INC IS 81 OWNED BY HALLWOOD CONSOLIDATED AND HALLWOOD ENERGY PARTNERS LP A RELATED PARTNERSHIP ALSO IN DENVER THE INDONESIAN COMPANY RECEIVED APPROVAL FROM PERTAMINA INDONESIA'S STATE OIL COMPANY TO JOIN A GROUP THAT INCLUDES PERTAMINA IN DEVELOPING THE TALAGA SAID AND DARAT FIELDS IN NORTHERN SUMATRA THOSE FIELDS WHICH COVER SOME 14000 ACRES WERE ABANDONED DURING WORLD WAR II BEFORE THAT THEY HAD PRODUCED ABOUT 236 MILLION BARRELS WITHOUT MODERN PRODUCTION METHODS HALLWOOD CONSOLIDATED SAID THE COMPANY EXPECTS A TWOYEAR TESTING AND EVALUATION PHASE DURING WHICH HALLWOOD PETROLEUM INDONESIA'S TOTAL CAPITAL COMMITMENT WILL BE 65 MILLION 9311220046 931122 KYOCERA CORP SAYS PRETAX NET ROSE 81 IN FISCAL FIRST HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO KYOCERA CORP A JAPANESE MAKER OF CERAMIC PACKAGING FOR INTEGRATED CIRCUITS SAID CONSOLIDATED PRETAX PROFIT SURGED 81 IN THE FIRST HALF ENDED SEPT 30 ON THE STRENGTH OF NONOPERATING PROFIT FROM THE LISTING OF ITS AFFILIATED COMPANIES DDI CORP AND TAITO CORP FOR THE HALF PRETAX PROFIT TOTALED 4349 BILLION YEN 4053 MILLION UP FROM 2407 BILLION YEN NET INCOME ROSE 92 TO 2303 BILLION YEN SALES HOWEVER SLIPPED 2 TO 21123 BILLION YEN KYOCERA SAID ITS BUSINESS ENVIRONMENT IS LIKELY TO REMAIN SEVERE DURING THE SECOND HALF INDEED AMID THE PROSPECT OF FURTHER ECONOMIC WEAKNESS AT HOME AND ABROAD KYOCERA AGAIN TRIMMED ITS FORECASTS FOR UNCONSOLIDATED SALES AND PRETAX PROFITS FOR THE FISCAL YEAR ENDING IN MARCH A SPOKESMAN SAID THE LOWER FORECASTS ARE MAINLY DUE TO THE IMPACT OF THE STRONGER YEN BUT WITH THE EXTRAORDINARY PROFITS FROM THE SALE OF ITS DDI SHARES IN HAND IT REVISED UPWARD ITS NET INCOME PREDICTION KYOCERA NOW EXPECTS UNCONSOLIDATED PRETAX PROFIT TO TOTAL 3540 BILLION YEN COMPARED WITH A PREVIOUS FORECAST FOR PROFIT OF 3750 BILLION YEN NET INCOME IS EXPECTED TO TOTAL 2210 BILLION YEN UP FROM A PREVIOUS FORECAST OF 21 BILLION YEN THE COMPANY DIDN'T GIVE A FULLYEAR FORECAST FOR CONSOLIDATED RESULTS DURING THE LATEST HALF KYOCERA SAID THERE WAS GOOD DEMAND IN JAPAN FOR SOME TELECOMMUNICATIONS EQUIPMENT SUCH AS CELLULAR TELEPHONES BUT THE WEAKNESS OF THE ECONOMY LEFT ELECTRONIC PARTSRELATED SALES WEAKER OVERALL DOMESTIC SALES ROSE 76 OVERSEAS KYOCERA SAID DEMAND FROM THE US AND ASIA FOR SEMICONDUCTORRELATED PARTS WAS STRONG BUT EUROPEAN DEMAND REMAINED IN A SLUMP DUE IN ADDITION THE SHARP APPRECIATION OF THE YEN CUT INTO THE VALUE OF OVERSEAS SALES WHEN TRANSLATED INTO YEN TERMS OVERSEAS SALES DROPPED 99 FROM THE YEAREARLIER SIXMONTH PERIOD TO 10624 BILLION YEN KYOCERA SAID COSTCUTTING EFFORTS HELPED IT BOOST OPERATING PROFITS 12 ON ITS MAIN BUSINESS ACTIVITIES TO 2114 BILLION YEN DURING THE FIRST HALF BUT THE COMPANY SAID AN INCREASE IN NONOPERATING PROFIT TO 2235 BILLION YEN FROM 517 BILLION YEN THE YEAR BEFORE DUE TO SALES OF ITS HOLDINGS OF DDI AND TAITO WHEN THOSE COMPANIES WERE LISTED ON THE TOKYO STOCK EXCHANGE WAS THE MAIN FACTOR CAUSING ITS PROFITS TO SURGE DURING THE FIRST HALF 9311220045 931122 WHO'S NEWS MOLEX INC MOLEX INC LISLE ILL FREDERICK A KREHBIEL THE 52YEAROLD CHIEF EXECUTIVE OFFICER AND VICE CHAIRMAN WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS ELECTRICAL PARTS COMPANY THE MOVE FILLS A VACANCY CREATED BY THE DEATH OF HIS FATHER JOHN H KREHBIEL SR THE VICE CHAIRMAN'S POST WILL BE VACANT 9311220044 931122 BUSINESS BRIEF CONTINENTAL BAKING CO CONCERN WILL SWAP FACILITIES IN INTERSTATE BAKERIES PACT TWO OF THE NATION'S LEADING BAKING COMPANIES AGREED TO SWAP BAKERIES IN CALIFORNIA AND FLORIDA TERMS WEREN'T DISCLOSED CONTINENTAL BAKING CO SAID IT WOULD ACQUIRE A LOS ANGELES CAKEMAKING FACILITY FROM INTERSTATE BAKERIES CORP AS WELL AS A 20YEAR RENEWABLE LICENSE TO MAKE AND DISTRIBUTE DOLLY MADISON AND OTHER INTERSTATE BRAND SNACK PRODUCTS ON THE WEST COAST AND IN ALASKA AND HAWAII BASED IN ST LOUIS CONTINENTAL IS THE NATION'S LARGEST COMMERCIAL BAKER INTERSTATE SAID IT WOULD ACQUIRE CONTINENTAL'S TAMPA FLA BREAD BAKERY AS WELL AS LONGTERM RIGHTS TO MAKE AND MARKET WONDER HOME PRIDE BEEFSTEAK AND OTHER CONTINENTAL BRANDS IN FLORIDA CONTINENTAL WILL CONTINUE TO MARKET ITS HOSTESSBRAND PRODUCTS AS WELL AS BREAD DU JOUR IN FLORIDA SEPARATELY RALSTON PURINA CO WHICH OWNS 45 OF CONTINENTAL SAID IT COMPLETED THE PURCHASE OF THE OATSPROCESSING PACKAGING AND CEREALMAKING OPERATIONS OF NATIONAL OATS CO A UNIT OF CURTICEBURNS FOODS INC FOR UNDISCLOSED TERMS 9311220043 931122 MANAGER'S JOURNAL GOING SOUTH NOT SO FAST BY JOHN J DOWDY ANYONE WHO STILL FEARS THAT IMPLEMENTATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT WILL RESULT IN A GIANT SUCKING SOUND AS LOW MEXICAN WAGES DRAIN THE US OF FACTORY JOBS SHOULD UNDERSTAND THAT SUCCEEDING AT OFFSHORE MANUFACTURING IS HARDER THAN MANY PEOPLE SUSPECT AT LEAST IN KNOWLEDGEINTENSIVE INDUSTRIES SUCH AS ELECTRONICS AEROSPACE AND PHARMACEUTICALS MANAGING FROM A DISTANCE HINDERS THE USE OF MANY CRITICAL MANAGERIAL TECHNIQUES FURTHERMORE ANY COST SAVINGS REALIZED THROUGH LOWWAGE MANUFACTURING CAN BE FLEETING AS COMPETITORS TAP THE SAME WORK FORCE NEGATING THE COST ADVANTAGE AND EVENTUALLY RAISING LOCAL WAGE LEVELS THE DIFFICULTIES OF LOWWAGE MANUFACTURING ARE APPARENT EVEN AT SUCCESSFUL COMPANIES LIKE SEAGATE TECHNOLOGIES A LEADING PRODUCER OF COMPUTER DISK DRIVES SEEKING LOWER COSTS IN RESPONSE TO INTENSE PRESSURE ON ITS PRICES IN THE MID1980S SEAGATE MOVED PRODUCTION TO SINGAPORE COMPETITORS FOLLOWED ITS LEAD NEGATING THE COST ADVANTAGE AND CONTRIBUTING TO A WAGE SPIRAL THAT PROMPTED SEAGATE TO MOVE OPERATIONS TO THAILAND THERE THE GOVERNMENT SUBSEQUENTLY INCREASED ITS MINIMUM WAGE THREE TIMES IN 18 MONTHS SEAGATE ULTIMATELY GENERATED COST SAVINGS BUT THE MOVES HAMPERED THE COMPANY'S ABILITY TO DEVELOP NEW TECHNOLOGIES AND LOWCOST MANUFACTURING SKILLS ACCOUNTS OF ZENITH ELECTRONICS' EXPERIENCES IN MEXICO ARE MORE TYPICAL OF COMPANIES RELYING ON LOW WAGES TO CONTROL PRODUCTION COSTS ZENITH THE TELEVISION MANUFACTURER WHICH LOST 106 MILLION LAST YEAR DOES MOST OF ITS MANUFACTURING IN MEXICO BUT STILL STRUGGLES TO MEET COMPETITORS' PRICES THE COMPANY'S OPERATIONS SUFFERED FROM HIGH SCRAP AND REWORK RATES AND EXCESSIVE SPENDING TO MAINTAIN QUALITY THROUGH POSTPRODUCTION INSPECTION ZENITH IS NOW TACKLING THESE PROBLEMS WITH THE HELP OF A TOP OPERATIONS EXECUTIVE HIRED FROM IBM TWO YEARS AGO OF MORE THAN 100 ELECTRONICS COMPANIES MCKINSEY & CO STUDIED THE MOST SUCCESSFUL ONES PERFORMED MOST CIRCUIT BOARD ASSEMBLY IN THEIR OWN FACILITIES IN HIGHWAGE LOCATIONS THESE COMPANIES BASED IN NORTH AMERICA EUROPE AND JAPAN EARNED AN AVERAGE RETURN ON SALES OF 6 COMPANIES THAT ASSEMBLED A MAJORITY OF THEIR CIRCUIT BOARDS IN LOWWAGE COUNTRIES GENERATED AN AVERAGE LOSS OF 3 SUCCESSFUL LOCAL PRODUCERS BUILD AND SUPPORT A LEAN PROBLEMSOLVING ORGANIZATION USING TECHNIQUES DIFFICULT FOR OFFSHORE MANUFACTURERS TO DUPLICATE THESE INCLUDE TRAINING AND ORGANIZING FRONTLINE EMPLOYEES IN SELFMANAGING TEAMS DELEGATING DECISIONS AND RESPONSIBILITY FOR PROCESS IMPROVEMENT AND TYING COMPENSATION TO PERFORMANCE FOR ALL EMPLOYEES OFFSHORE MANUFACTURERS ARE MORE LIKELY THAN THE LOCAL PRODUCERS TO PAY SENIOR MANAGERS FOR MEETING BUSINESS OBJECTIVES BUT THEY ARE MUCH LESS LIKELY TO INCLUDE ASSEMBLERS TECHNICIANS AND FIRSTLINE MANAGERS WHO TEND TO BE LESS WELLEDUCATED THAN WORKERS AT HOME IN SUCH PROGRAMS KNOWLEDGEDRIVEN MANUFACTURERS IN PARTICULAR WILL BE HARD PRESSED TO NURTURE A PROBLEMSOLVING ORGANIZATION WITH TURNOVER RATES LIKE THOSE OF SOME OF MEXICO'S MAQUILADORA PLANTS WHICH EPITOMIZE RELIANCE ON CHEAP LABOR MANAGERS AT A PAIR OF USOWNED MAQUILA ELECTRONIC ASSEMBLY PLANTS HAD TO SPEND HEAVILY ON TRAINING IN THE FACE OF TURNOVER OF 10 A MONTH IT RUNS TWICE AS HIGH AT SOME OTHER MAQUILADORAS SUCCESSFUL LOCAL PRODUCERS ALSO ARE FAR MORE EFFECTIVE THAN OFFSHORE PRODUCERS IN REDUCING DEVELOPMENT AND MANUFACTURING COSTS THEY EMPHASIZE CROSSFUNCTIONAL PRODUCT DEVELOPMENT TEAMS TO ENSURE THAT DESIGNS REFLECT MANUFACTURING CONSIDERATIONS AVOIDING COSTLY CORRECTIONS LATER THEY ADOPT THE NEWEST TECHNOLOGY ESPECIALLY THE SURFACEMOUNT TECHNIQUE FOR PLACING COMPONENTS ON CIRCUIT BOARDS BY BUILDING AN EFFECTIVE SUPPLIER NETWORK THEY BENEFIT FROM DIRECTTOSTOCK SHIPMENT AND JUSTINTIME PROCUREMENT OFFSHORE MANUFACTURERS ON THE OTHER HAND ARE HARD PUT TO ADOPT THESE METHODS AS A GROUP THEY TRAIL THE SUCCESSFUL LOCAL PRODUCERS IN PUTTING MANUFACTURING PEOPLE ON PRODUCT DEVELOPMENT TEAMS THEIR FARFLUNG OPERATIONS MAKE IT HARDER TO COMMUNICATE ACROSS DEPARTMENTAL BOUNDARIES THEY RELY ON OLDFASHIONED LABORINTENSIVE PROCESSES THEY TAKE DELIVERIES WITH LONGER LEAD TIMES THAN LOCAL PRODUCERS DO THERE ARE ADDITIONAL PROBLEMS WITH OFFSHORE PRODUCTION INCLUDING CURRENCY EXPOSURE HIGH INVENTORIES DUE TO TRANSIT TIMES STAGNANT LABOR PRODUCTIVITY AND IN SOME PLACES COMPLEX TAX AND REGULATORY REGIMES FOR US MANUFACTURERS WHICH OPERATE FREE OF THE COSTS IMPOSED BY EUROPEAN SOCIAL POLICIES THE CASE AGAINST A MANUFACTURING STRATEGY BASED ON LOW WAGES IS MOST COMPELLING DIRE PREDICTIONS ABOUT NAFTA'S IMPACT ON US JOBS RARELY TAKE INTO ACCOUNT THE LIMITATIONS AND THE COMPLEXITY OF SETTING UP PLANTS TO TAKE ADVANTAGE OF LOW WAGES IN GOING OFFSHORE MANUFACTURERS MUST CONTINUE TO IMPROVE THEIR OPERATIONAL SKILLS AND MAINTAIN TIGHT LINKS BETWEEN PRODUCTION AND OTHER FUNCTIONS SUCH AS PRODUCT DEVELOPMENT PERHAPS BY MOVING PARTS OF THOSE FUNCTIONS AS WELL MEANWHILE IF THEY HAVEN'T ALREADY DONE SO MANAGERS IN KNOWLEDGEDRIVEN INDUSTRIES SHOULD FOCUS ON PERFORMANCE CHALLENGES AT HOME BEFORE TRYING TO SHIP THEM ABROAD MR DOWDY IS A CONSULTANT IN THE LOS ANGELES OFFICE OF MCKINSEY & CO 9311220042 931122 THE CLIENTS THAT EXASPERATE MADISON AVENUE BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL BURGER KING PUT ITS JUICY 100 MILLIONPLUS ADVERTISING ACCOUNT INTO REVIEW ALMOST A MONTH AGO BUT SOME AD AGENCIES DON'T SEEM VERY HUNGRY SEVERAL SHOPS THAT WOULD NORMALLY CHASE SUCH A HIGHPROFILE DEEPPOCKETED CLIENT INCLUDING NW AYER MESSNER VETERE BERGER MCNAMEE SCHMETTERER TBWA ADVERTISING AND GOODBY BERLIN & SILVERSTEIN HAVE DECIDED NOT TO ENTER THE BURGER KING REVIEW THEIR RESPONSE UNDERSCORES A PARADOX OF MADISON AVENUE'S LEAN TIMES AD AGENCIES SAY SOME ACCOUNTS ARE SO DIFFICULT TO WORK WITH THAT THEY SIMPLY CANNOT OR WILL NOT SERVICE THEM SOME MADISON AVENUE EXECUTIVES CALL THEM THE CLIENTS FROM HELL IN ADDITION TO GRAND METROPOLITAN'S BURGER KING SUCH ADVERTISERS AS BRISTOLMYERS SQUIBB E & J GALLO WINERY REEBOK INTERNATIONAL AND TRANS WORLD AIRLINES HAVE BECOME NOTORIOUS AMONG ADVERTISING AGENCIES FOR BEING VERY DEMANDING WHILE SHOWING LITTLE LOYALTY TO THEIR AGENCIES WHEN AGENCIES TURN THEM DOWN IT'S NOT SOLELY ON THE THOUGHT THAT THEY'LL LOSE MONEY SAYS JERRY DELLA FEMINA PRESIDENT OF JERRY INC NEW YORK IT'S NOT EASY TO LOSE MONEY ON A 100 MILLION ACCOUNT MR DELLA FEMINA NOTES BUT A CLIENT THAT IS A TERRIBLE CLIENT CAN PARALYZE AN ADVERTISING AGENCY HE SAYS IT'S JUST NOT WORTH IT TO BE SURE ALL OF THESE COMPANIES CAN FIND AGENCIES THAT ARE HAPPY TO HAVE THEIR BUSINESS THE ADVERTISING INDUSTRY IS INTENSELY COMPETITIVE AND BIG CLIENTS OFTEN HAVE HUGE ADVERTISING BUDGETS AT LEAST EIGHT AGENCIES ARE LINED UP TO COMPETE FOR BURGER KING'S BUSINESS BUT SOME ADVERTISING AGENCIES NOW PICK AND CHOOSE THEIR CLIENTS IN MUCH THE WAY CLIENTS HAVE TRADITIONALLY PICKED AND CHOSEN THEIR AGENCIES EACH DIFFICULT CLIENT IS AGGRAVATING IN ITS OWN WAY AD AGENCY PEOPLE SAY BURGER KING FOR EXAMPLE HAS BEEN STRUGGLING FOR YEARS TO CREATE ADS THAT WILL PLEASE BOTH CONSUMERS AND ITS 1200 FRANCHISEES WHO ARE DIVIDED INTO FEUDING FACTIONS IN EFFECT THE AGENCY MUST PLEASE AT LEAST TWO DIFFERENT CLIENTS BRISTOLMYERS'S CONSUMER PRODUCTS GROUP A FERVENT BELIEVER IN TESTING OF COMMERCIALS FREQUENTLY HAS SEVERAL OF ITS CLUB AGENCIES AGENCIES WITH WHICH THE COMPANY REGULARLY WORKS SIMULTANEOUSLY DEVELOP IDEAS FOR A CAMPAIGN THEN IT METICULOUSLY TESTS EACH ONE BEFORE CHOOSING THE ONE THAT WILL GET THE BUSINESS AD AGENCIES SAY THEY OFTEN DO SUCH SPECULATIVE WORK FOR FREE BRISTOL WOULDN'T SAY WHETHER IT PAID ITS ADVERTISERS FOR DEVELOPING IDEAS A SPOKESWOMAN FOR BRISTOLMYERS CONSUMER PRODUCTS SAYS THE COMPANY DOESN'T FOLLOW A FIXED PROCEDURE IN ASSIGNING NEW CAMPAIGNS THE COMPANY AIMS TO GET THE BEST ADVERTISING WE CAN FOR EACH BUSINESS AND TO FORM SUCCESSFUL LONGTERM PARTNERSHIPS WITH OUR AGENCIES SHE SAID REEBOK INTERNATIONAL IS KNOWN FOR DISRUPTING ADVERTISING CAMPAIGN DEADLINES BY SEEKING INPUT FROM A WIDE RANGE OF ITS JUNIOR AND SENIOR EXECUTIVES AND TWA WON A REPUTATION AS JUST PLAIN STINGY WHEN IT SAID IN 1990 THAT IT WOULD PAY ITS AGENCY AVRETT FREE & GINSBERG A COMMISSION ON MEDIA BILLINGS OF 5 TO 6 LESS THAN HALF WHAT AGENCIES ORDINARILY EXPECT IT APPEARS THAT THE AIRLINE IS GETTING READY TO MOVE ITS ACCOUNT AGAIN THAT WOULD MAKE THE THIRD SWITCH IN FIVE YEARS TWA WHICH HAS CHANGED MANAGEMENT SINCE IT REVEALED ITS COMPENSATION POLICY WOULD NOT COMMENT ON ITS CURRENT ARRANGEMENT WITH SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES BACKER ALSO DECLINES COMMENT THEN THERE'S THE MOST FAMOUS DIFFICULT CLIENT E & J GALLO WINERY THE COMPANY IS KNOWN FOR COMPENSATING ITS AGENCIES GENEROUSLY AND FOR GETTING AT LEAST ITS MONEY'S WORTH ERNEST GALLO THE 84YEAROLD CHAIRMAN ATTENDS EVERY MEETING WITH HIS AGENCIES WHICH USUALLY PRESENT DOZENS OF STORYBOARDS BEFORE HE SETTLES ON A CONCEPT AROUND MADISON AVENUE HE IS KNOWN FOR HIS MERCURIAL DECISIONS TO CHANGE CAMPAIGNS AND EVEN AGENCIES ON A DIME THEY GALLO WEREN'T THE WORST CLIENT I'VE EVER HAD BUT THEY WERE UNUSUAL SAYS DICK COSTELLO PRESIDENT AND CHIEF OPERATING OFFICER OF OMNICOM GROUP'S TBWA ADVERTISING WHICH HANDLED GALLO'S TOTT'S CHAMPAGNE ACCOUNT FOR TWO AND A HALF YEARS YOU WOULD START IN JANUARY DEVELOPING HOLIDAY CAMPAIGNS AND YOU'D BE WORKING ON IT ALL YEAR ONE YEAR WE PRESENTED 48 STORYBOARDS BUT HE ADDS YOU DON'T TAKE THE GALLO TREATMENT PERSONALLY YOU KNOW HOW IT'S GOING TO BE GOING IN GALLO DECLINED TO COMMENT DIFFICULT CLIENTS SEEM TO HAVE THEIR ACCOUNTS PERPETUALLY IN REVIEW SOMETIMES AVERAGING A NEW AGENCY ALMOST EVERY YEAR THAT'S A HIGH TURNOVER RATE IN THE AD BUSINESS WHERE SOME CLIENTS AND AGENCIES HAVE BEEN TOGETHER LONGER THAN MOST MARRIAGES FOR EXAMPLE WPP GROUP'S J WALTER THOMPSON HAS PRODUCED ADS FOR LEVER BROS' LIFEBUOY SOAP SINCE 1902 AGENCIES HAVE BECOME MORE WARY OF UNQUESTIONINGLY CHASING EVERY POTENTIAL CLIENT AS IN A MARRIAGE ALL AGENCIES AND ALL CLIENTS DON'T WORK WELL TOGETHER SAYS MARTIN PURIS CHIEF EXECUTIVE OF AMMIRATI & PURIS WHICH WALKED AWAY FROM THE BMW LUXURY CAR ACCOUNT AFTER 18 YEARS RATHER THAN SUBMIT TO A REVIEW MANY ON MADISON AVENUE APPLAUDED MR PURIS WHEN HE REFUSED TO COMPETE WITH OTHER AGENCIES IN THE BMW REVIEW AFTER YEARS OF CREATING HIGHLY PRAISED CAMPAIGNS FOR THE GERMAN CAR MAKER ON THE OTHER HAND AMMIRATI & PURIS IS PURSUING THE BURGER KING ACCOUNT BURGER KING DENIES BEING A DIFFICULT CLIENT IN A RETAIL BUSINESS I WOULD SAY GOING OUT AND SEEKING FRESH TALENT IS A WISE MOVE A BURGER KING SPOKESWOMAN SAYS REASSESSING AD AGENCIES IS VALID AND FAIR SHE ADDS AND WE DO IT WITH ALL OUR VENDORS FROM TIME TO TIME IN ADDITION SHE NOTES THAT ALTHOUGH THE COMPANY HAS HAD FOUR AGENCIES IN SIX YEARS IT WAS WITH THE SAME AGENCY WPP GROUP'S J WALTER THOMPSON FOR 11 YEARS BEFORE THE TWO PARTED WAYS SOMETIMES THE LONGTIME AGENCY DECIDES ENOUGH IS ENOUGH LAST JUNE OMNICOM GROUP'S DDB NEEDHAM NEW YORK A BRISTOL CLUB AGENCY FOR 24 YEARS RESIGNED FROM ABOUT 25 MILLION IN BRISTOL BILLINGS DDB'S THENPRESIDENT ANDY BERLIN SENT A MEMO TO THE AGENCY'S DEMORALIZED EMPLOYEES LIKENING BRISTOL'S POLICY OF CONSTANT CREATIVE SHOOTOUTS TO THE SPANISH INQUISITION DIFFICULT CLIENTS OFTEN GET THEIR REPUTATION BECAUSE OF WHAT THE AGENCIES BELIEVE IS EXCESSIVE MEDDLING BY MANAGEMENT REEBOK INTERNATIONAL DIDN'T SEEM TO KNOW WHAT IT WANTED IN AN AGENCY WHEN IT BOUNCED BETWEEN THE AGENCIES CHIAT/DAY AND HILL HOLLIDAY CONNORS COSMOPULOS FOR SEVERAL YEARS GIVING MANY MANAGERS INPUT INTO THE ADS ARE WE A DEMANDING CLIENT YES SAYS A COMPANY SPOKESMAN BUT WE'RE IN A COMPETITIVE ENVIRONMENT DRIVEN BY TRENDS THAT CAN OBVIOUSLY MAKE FOR AN INCONSISTENT AND DEMANDING AND DIFFICULT CLIENT 9311220041 931122 BUSINESS BRIEF WRT ENERGY CORP THIRDPERIOD PROFIT IS SEEN ON SHARPLY HIGHER REVENUE WRT ENERGY CORP SAID IT EXPECTS TO REPORT THIRDQUARTER NET INCOME OF ONE CENT TO TWO CENTS A SHARE ON REVENUE MORE THAN TRIPLE THE YEAREARLIER FIGURE STEVEN S MCGUIRE PRESIDENT AND CHIEF EXECUTIVE SAID THE COMPANY BASED IN THE WOODLANDS TEXAS EXPECTS NET INCOME OF 75000 TO 125000 ON REVENUE OF 18 MILLION FOR THE YEAREARLIER PERIOD WRT ENERGY REPORTED A NET LOSS OF 186421 OR 10 CENTS A SHARE ON REVENUE OF 554839 THE IMPROVEMENT IS PRIMARILY THE RESULT OF AN ACQUISITION IN JULY OF A 91 WORKING INTEREST IN THE LAC BLANC NATURALGAS FIELD IN LOUISIANA WRT ENERGY USES A NUMBER OF TECHNOLOGIES TO BOOST PRODUCTION FROM OLD WELLS FOR THE NINE MONTHS MR MCGUIRE SAID HE EXPECTS WRT ENERGY TO REPORT A LOSS OF 799000 TO 849000 ON REVENUE OF 29 MILLION DOWN FROM YEAREARLIER NET INCOME OF 393737 ON REVENUE OF 24 MILLION 9311220040 931122 BUSINESS BRIEF EXXON CORP HOUSTON JURY AWARDS UNIT 48 MILLION IN PATENT CASE EXXON CORP IRVING TEXAS SAID A HOUSTON FEDERAL JURY AWARDED ONE OF THE OIL COMPANY'S UNITS 48 MILLION IN DAMAGES IN A PATENT INFRINGEMENT CASE THE AWARD AGAINST LUBRIZOL CORP FOLLOWS A DECEMBER 1992 JURY VERDICT THAT LUBRIZOL INFRINGED EXXON'S 1989 PATENT COVERING CERTAIN MOTOR OIL FORMULATIONS A PERMANENT INJUNCTION WAS ISSUED PREVENTING LUBRIZOL FROM MAKING AND SELLING MOTOR OIL PRODUCTS THAT INFRINGE ON EXXON'S PATENT SUBSEQUENT TO THAT VERDICT THE COURT HAD ALREADY AWARDED EXXON 18 MILLION TO PAY ATTORNEYS' FEES THE 48 MILLION DAMAGE AWARD COULD BE INCREASED AT THE JUDGE'S DISCRETION EXXON SAID IN WICKLIFFE OHIO A SPOKESMAN FOR LUBRIZOL CONFIRMED THE AWARD BUT POINTED OUT THAT LUBRIZOL HAS APPEALED THE ORIGINAL VERDICT 9311220039 931122 BUSINESS BRIEF ESQUIRE RADIO & ELECTRONICS INC SHAREHOLDER FILES LAWSUIT CHALLENGING TENDER OFFER A SHAREHOLDER OF ESQUIRE RADIO & ELECTRONICS INC SUED THE COMPANY'S OFFICERS AND DIRECTORS SEEKING TO ENJOIN ESQUIRE FROM PURSUING A PARTIAL TENDER OFFER IN A SUIT FILED IN DELAWARE CHANCERY COURT GARY L SAMPLE CHARGES THAT A TENDER OFFER FOR AS MANY AS 150000 SHARES OR 31 OF SHARES OUTSTANDING IS ACTUALLY AN ATTEMPT BY THE LIEBERMAN FAMILY TO GAIN MAJORITY CONTROL OF ESQUIRE TO AVOID A THREAT OF A PROXY FIGHT THE LIEBERMAN FAMILY THE COMPANY'S LARGEST SHAREHOLDER HAS A 35 STAKE MR SAMPLE ALSO CLAIMS THE TENDER PRICE 47 A SHARE IS INADEQUATE AND IS SEEKING DAMAGES THE TENDER OFFER WAS APPROVED EARLIER THIS MONTH MR SAMPLE IS SEEKING CLASSACTION STATUS FOR THE SUIT WHICH NAMES HARVEY LIEBERMAN PRESIDENT OF ESQUIRE OTHER MEMBERS OF THE LIEBERMAN FAMILY WHO SIT ON THE BOARD AND TWO OTHER DIRECTORS OFFICIALS FROM THE NEW YORK TELECOMMUNICATIONSEQUIPMENT CONCERN COULDN'T BE REACHED TO COMMENT 9311220038 931122 BUSINESS BRIEF CLEAR CHANNEL COMMUNICATIONS INC SNOWDEN BROADCASTING TO GET RADIO STATIONS IN TRANSFER CLEAR CHANNEL COMMUNICATIONS INC SEEKING TO GET UNDER THE FEDERAL LIMIT ON HOW MANY RADIO STATIONS IT CAN OWN AGREED TO TRANSFER 11 STATIONS TO SNOWDEN BROADCASTING OF NEW ORLEANS LC THE TRANSFER WOULD BE IN THE FORM OF A CAPITAL CONTRIBUTION IN SNOWDEN A LIMITEDLIABILITY CORPORATION IN WHICH CLEAR CHANNEL BASED IN SAN ANTONIO TEXAS WILL CONTINUE TO HOLD AN 80 OWNERSHIP STAKE BUT NO VOTING INTEREST THE TRANSFER REQUIRES FEDERAL COMMUNICATIONS COMMISSION APPROVAL THE DEAL ALONG WITH ANOTHER PENDING TRANSACTION WOULD LEAVE CLEAR CHANNEL WITH 15 FM STATIONS AND 11 AM STATIONS KEEPING THE COMPANY UNDER THE FCC LIMIT OF 18 FM AND 18 AM STATIONS CLEAR CHANNEL ALSO OWNS TELEVISION STATIONS THE STATIONS TO BE TRANSFERRED TO SNOWDEN ARE IN NEW ORLEANS TULSA OKLA WICHITA KAN NEW HAVEN CONN AND BRYAN/COLLEGE STATION TEXAS 9311220037 931122 INTERNATIONAL BRIEF BURNS PHILP & CO PROFIT IN FIRST FOUR MONTHS JUMPED 33 TO 298 MILLION BURNS PHILP & CO SYDNEY AUSTRALIA REPORTED A 33 INCREASE IN PROFIT TO 45 MILLION AUSTRALIAN DOLLARS US298 MILLION FOR THE FIRST FOUR MONTHS OF THE FISCAL YEAR EXECUTIVES AT THE ANNUAL MEETING OF THE AUSTRALIAN FOODINGREDIENTS AND HARDWARERETAILING COMPANY SAID THEY EXPECT PROFIT FOR THE FULL YEAR ENDING JUNE 30 1994 WILL BE HIGHER THAN LAST YEAR'S A1101 MILLION LOOKING FURTHER AHEAD MANAGING DIRECTOR ANDREW TURNBULL PREDICTED BURNS PHILP WILL DOUBLE ITS ASSETS WITHIN FIVE YEARS OBTAIN A LISTING IN THE US AND EXPAND FURTHER INTERNATIONALLY THESE TARGETS ARE PART OF BURNS PHILP'S STRATEGY TO FOCUS ON EXPANDING AND IMPROVING ITS NICHE FOOD OPERATIONS THE COMPANY IS A LARGE PRODUCER OF VINEGAR BAKER'S YEAST AND HAS AN EXPANDING SHARE OF THE MARKET FOR HERBS AND SPICES 9311220036 931122 TECHNOLOGY HOUSE VOTES TO ABOLISH ENVIRONMENTAL COUNCIL WASHINGTON THE HOUSE VOTED TO ELIMINATE THE WHITE HOUSE COUNCIL ON ENVIRONMENTAL QUALITY AND TRANSFER A KEY FUNCTION OF THAT AGENCY TO A NEWLY CREATED SMALLER WHITE HOUSE OFFICE THE MEASURE WHICH PASSED BY A VOICE VOTE SATURDAY IS SUPPORTED BY THE CLINTON ADMINISTRATION AND REFLECTS A COMPROMISE IN ITS EFFORTS TO ABOLISH THE COUNCIL MANY ENVIRONMENTAL ORGANIZATIONS HAD OPPOSED THE MOVE THE FATE OF THE HOUSE MEASURE HOWEVER IS CLOUDY BECAUSE IT'S NOT YET CLEAR WHETHER IT CAN BE MATCHED UP TO A SENATE BILL PASSED EARLIER THIS YEAR THAT WOULD ABOLISH THE COUNCIL AND ELEVATE THE ENVIRONMENTAL PROTECTION AGENCY TO CABINET STATUS A HOUSE BILL ELEVATING THE EPA HASN'T YET COME TO THE FLOOR THE COUNCIL ADMINISTERS THE NATIONAL ENVIRONMENTAL POLICY ACT A 1969 LAW THAT REQUIRES FEDERAL AGENCIES TO PRODUCE ENVIRONMENTALIMPACT STATEMENTS BEFORE PROCEEDING WITH GOVERNMENT PROJECTS UNDER THE HOUSE BILL THAT FUNCTION WOULD BE TRANSFERRED TO A WHITE HOUSE OFFICE WITH SEVEN PROFESSIONAL STAFF MEMBERS 9311220035 931122 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA WILL BOOST BY 15 ITS PAYMENTS TO FARMERS FOR GRAIN AND COTTON NEXT YEAR IN A BID TO PLUG THE GROWING GAP BETWEEN URBAN AND RURAL INCOMES AND AVERT MORE UNREST IN THE COUNTRYSIDE HOME TO TWOTHIRDS OF THE 12 BILLION POPULATION THE INCOME GAP IS ALARMING CHINA'S LEADERSHIP WHICH HAS GRADUALLY LIFTED CONTROLS ON GRAIN PRICES TO TRY TO RAISE INCOMES OF PEASANTS WHO TURNED VIOLENT OVER THE ISSUE EARLIER THIS YEAR THE STATE ALSO WILL SET UP GRAINRISK FUNDS TO REGULATE THE MARKET BY BUYING AND SELLING TO REDUCE SHARP PRICE FLUCTUATIONS GRAIN PRICES HAVE RISEN BUT NOT AS FAST AS THE PRICES OF PESTICIDE FERTILIZER TRACTORS AND OTHER FARM SUPPLIES THUS MANY FARMERS' TAKEHOME PAY HAS FALLEN IN THIS YEAR'S FIRST NINE MONTHS FARMERS' EARNINGS ROSE AN INFLATIONADJUSTED 5 FROM A YEAR EARLIER BUT AMOUNTED TO ONLY 54 OF CITY RESIDENTS' INCOMES WHICH CLIMBED 12 AND THE ANNUAL INFLATION RATE IN AUGUST IN RURAL PROVINCES TOPPED 22 THE SOUTH KOREAN GOVERNMENT PLANS TO REDUCE OR ELIMINATE TARIFFS ON 252 INDUSTRIAL PRODUCTS IN RESPONSE TO DEMANDS BY NEGOTIATORS SEEKING TO LIBERALIZE WORLD TRADE RULES THE MOVE WHICH REQUIRES ACCEPTANCE BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE WOULD ALLOW DUTYFREE TRADE BY 1999 IN 60 PRODUCTS INCLUDING STEEL FURNITURE BEER AND MEDICAL CONSTRUCTION AND AGRICULTURAL EQUIPMENT NOW SUBJECT TO 8 TARIFFS LEVIES ON AN ADDITIONAL 192 ITEMS MOSTLY CHEMICAL PRODUCTS WOULD BE CUT BELOW 65 WITHIN 10 TO 15 YEARS THE IG BERGBAU MINING UNION IN GERMANY SAID IT WANTED TO SAFEGUARD JOBS IN THE COAL INDUSTRY BY SWITCHING TO A FOURDAY WORKWEEK AND MAKING WAGE CONCESSIONS THE STANCE COMES AS VOLKSWAGEN AG AND IG METALL THE METALWORKERS UNION BATTLE OVER VW'S RECESSIONINSPIRED PROPOSAL TO SAVE JOBS THROUGH 20 REDUCTIONS IN THE WORKWEEK AND PAY IN THE COALRICH RUHR VALLEY THE MINING UNION SAID THAT WITHOUT SUCH CONCESSIONS ABOUT 10000 COAL MINERS COULD LOSE THEIR JOBS IT PROPOSED THAT THE MINERS TAKE A 5 PAY CUT AND GIVE UP 5 OF NEXT YEAR'S WAGE INCREASE THE PHILIPPINE HOUSE OF REPRESENTATIVES APPROVED AND SENT TO THE SENATE A BILL EXPANDING THE LIST OF PRODUCTS SUBJECT TO THE VALUEADDED TAX THE MEASURE WOULD GENERATE ABOUT 89 MILLION STARTING NEXT YEAR THE LEGISLATION INTRODUCES VAT COVERAGE TO RAW MATERIALS USED IN PRODUCTION SUCH AS FOR PETROLEUM REAL ESTATE SALES AND HOTEL AND RESTAURANT OPERATIONS AMONG OTHERS IT EXEMPTS SOME AGRICULTURAL PRODUCTS SUCH AS COTTON THE BILL IS PART OF A PACKAGE AIMED AT REDUCING THE GOVERNMENT BUDGET DEFICIT AND ALLOWING THE PHILIPPINES TO SHORE UP ITS ECONOMY UNDER MULTINATIONAL LENDING GUIDELINES BEIRUT'S RENOWNED ARCHEOLOGICAL MUSEUM SHUTTERED BY THE LEBANESE CIVIL WAR THAT LASTED FROM 197590 WAS REOPENED TO THE PUBLIC A FEW EXHIBITS SUCH AS ROMAN MOSAICS STILL HANG ON BULLETSCARRED WALLS BUT PRIZED ARTIFACTS PHOENICIAN SARCOPHAGI ROMAN STATUES AND EGYPTIAN SPHINXES ARE STILL ENCASED IN POURED CONCRETE AND PROTECTIVE BLOCKS THAT SHIELDED THEM FROM COMBAT THE BUILDING WHICH STANDS ON THE LINE THAT DIVIDED THE WARRING CAPITAL INTO CHRISTIAN EAST BEIRUT AND THE MAINLY MUSLIM WEST NEEDS RESTORATION ESTIMATED TO COST 4 MILLION INDONESIA TEMPORARILY BANNED EXPORTS OF CEMENT TO MEET DOMESTIC DEMAND THAT JUMPED 15 TO 60000 TONS A DAY IN THE PAST THREE MONTHS CAUSING A STEEP RISE IN CEMENT PRICES IN JAKARTA TO HELP INCREASE SUPPLIES THE GOVERNMENT ALSO INSTRUCTED PRODUCERS TO IMPORT A RAW MATERIAL FOR MAKING CEMENT THE EXPORT HALT IS EXPECTED TO INCREASE CEMENT SUPPLIES BY 450000 TONS IN THE NEXT THREE MONTHS LAST YEAR INDONESIA PRODUCED 19 MILLION TONS OF CEMENT OF WHICH 17 MILLION TONS WERE EXPORTED TO NEIGHBORING ASIAN COUNTRIES JAPAN'S FAIR TRADE COMMISSION BANNED FOUR MENSWEAR COMPANIES FROM RUNNING NEWSPAPER ADVERTISEMENTS OFFERING SUITS FOR WHAT THE AGENCY DECLARED UNREASONABLY INEXPENSIVE PRICES THE ORDER THE FIRST SUCH BAN IN 20 YEARS WAS ISSUED TO AOYAMA TRADING CO OF FUKUYAMA AOKI INTERNATIONAL CO AND KONAKA CO BOTH OF YOKOHAMA AND DAISAN SHINSHIFUKU CO OF TOKYO AOYAMA DENIED ANY WRONGDOING THE OTHER THREE FIRMS SAID THEY DISCONTINUED THE ADS THE COMPANIES HAD DISTRIBUTED AD LEAFLETS THROUGH DAILY PAPERS IN THE TOKYO AREA LISTING PRICES BETWEEN 40 AND 90 LESS THAN THOSE FOR GARMENTS SOLD BY COMPETITORS THE FTC SAID THE COMPANIES DIDN'T DELIVER ON THE ADVERTISED PRICES JAPANESE MENSWEAR COMPANIES IN THE PAST COUPLE OF YEARS HAVE STEPPED UP PRICE COMPETITION FOR EXAMPLE ONE COMPANY SOLD FOR JUST 10 A SUIT THAT DEPARTMENT STORES PRICED BETWEEN 280 AND 650 AS A PRELUDE TO LOWER SUBSIDIES TO ITS ENERGY INDUSTRY POLAND SCHEDULED DEC 1 PRICE INCREASES OF 10 FOR ELECTRICITY 5 FOR NATURAL GAS AND 15 FOR CENTRAL HEATING AND HOT WATER DESPITE JAPAN'S RECESSION COUPLES LAST YEAR SPENT AN AVERAGE OF 78000 ON WEDDINGS THE MOST SINCE SANWA BANK BEGAN THE SURVEY IN 1974 AND UP 35 FROM A YEAR EARLIER HALF THREW POSTNUPTIAL PARTIES FOR ABOUT 85 PEOPLE AT A COST OF 35532 ABOUT 85 OF THE 754441 COUPLES TRAVELED ABROAD FOR HONEYMOONS 9311220034 931122 NEEL TO LEAVE WHITE HOUSE FOR JOB IN COMMUNICATIONS WASHINGTON ROY NEEL THE WHITE HOUSE'S DEPUTY CHIEF OF STAFF PLANS TO DEPART FOR A TOP LOBBYING JOB AT THE UNITED STATES TELEPHONE ASSOCIATION MR NEEL INFORMED THE WHITE HOUSE THAT HE MIGHT LEAVE AS EARLY AS YEAR END HE HAD TAKEN HIS WHITE HOUSE JOB ONLY AT MIDYEAR AFTER SERVING AS VICE PRESIDENT AL GORE'S CHIEF OF STAFF MR NEEL 48 YEARS OLD HAS CITED PERSONAL REASONS FOR THE MOVE AND IT'S NOT CLEAR HOW HIS DEPARTURE WILL AFFECT THE WHITE HOUSE HE WAS RESPONSIBLE FOR A VARIETY OF ADMINISTRATIVE DUTIES AND FOR A TIME ARRANGED PRESIDENT CLINTON'S DAILY SCHEDULE A REPLACEMENT ISN'T YET UNDER ACTIVE CONSIDERATION WHITE HOUSE AIDES SAID MR NEEL HAS BEEN CLOSE TO THE COMMUNICATIONS INDUSTRY EVEN AS A WHITE HOUSE STAFFER BELL ATLANTIC CORP CONTACTED HIM THE NIGHT BEFORE IT ANNOUNCED ITS PLANNED MERGER WITH CABLETELEVISION CONCERN TELECOMMUNICATIONS INC TO ARRANGE MEETINGS WITH A WIDE RANGE OF WHITE HOUSE AIDES 9311220033 931122 AMR UNIT SUES ALLEGING KLM GOT STOLEN PRICE DATA MINNEAPOLIS AP AMERICAN AIRLINES CLAIMS IN A LAWSUIT THAT NORTHWEST AIRLINES PROVIDED STOLEN PRICING INFORMATION TO ITS EUROPEAN PARTNER KLM ROYAL DUTCH AIRLINES IN VIOLATION OF A COURT ORDER A KLM SPOKESWOMAN IN NEW YORK DECLINED TO COMMENT NORTHWEST HAS DENIED RECEIVING SECRET INFORMATION FROM FORMER AMERICAN EMPLOYEES IT HIRED AMERICAN A UNIT OF AMR CORP MADE THE ACCUSATION IN A LAWSUIT FILED FRIDAY AGAINST KLM IN US DISTRICT COURT IN MINNEAPOLIS A RELATED SUIT FILED TWO YEARS AGO AGAINST EAGAN MINNBASED NORTHWEST A UNIT OF WINGS HOLDINGS INC IS PENDING IN THE SAME COURT AT ISSUE IS WHETHER NORTHWEST HIRED AMERICAN PRICING EXECUTIVES IN ORDER TO STEAL ITS LARGER RIVAL'S YIELDMANAGEMENT SYSTEM WHICH USES MATHEMATICAL MODELS TO DETERMINE PRICES THAT GENERATE MAXIMUM REVENUE FROM A GIVEN FLIGHT AMERICAN SAYS NORTHWEST HAS BEEN PASSING DETAILS OF AMERICAN'S SYSTEM TO KLM WHICH HAS PROFITED FROM THE INFORMATION IN VIOLATION OF A COURT INJUNCTION ISSUED LAST YEAR AMERICAN BASED IN FORT WORTH TEXAS IS ASKING FOR DAMAGES TO BE DETERMINED BY THE COURT AND AN ORDER BARRING KLM AND NORTHWEST FROM USING OR DISCLOSING ITS TRADE SECRETS 9311220032 931122 TECHNOLOGY & HEALTH AT&T SUITS AGAINST MCI SPRINT DISMISSED BY JUDGE WASHINGTON A FEDERAL COURT DISMISSED AMERICAN TELEPHONE & TELEGRAPH CO'S LAWSUITS AGAINST TWO OF ITS LONGDISTANCE RIVALS SAYING IT WOULD BE BETTER FOR THE FEDERAL COMMUNICATIONS COMMISSION TO REVIEW THE COMPLAINT THE ORDER BY JUDGE STANLEY S HARRIS OF THE US DISTRICT COURT IN WASHINGTON CAME AFTER AT&T FILED SUIT IN FEBRUARY AGAINST ITS RIVALS MCI COMMUNICATIONS CORP AND SPRINT CORP AT&T CLAIMED THAT THE CARRIERS VIOLATED THE COMMUNICATIONS ACT BY PROVIDING INTERSTATE SERVICES AT RATES NOT ON FILE WITH THE FCC BUT IN HIS ORDER SIGNED ON NOV 9 AND RELEASED FRIDAY JUDGE HARRIS SAID THE FCC SHOULD TAKE UP THE MATTER AN AT&T SPOKESMAN SAID THE COMPANY IS REVIEWING HOW TO RESPOND TO THE ORDER IT IS REALLY A PROCEDURAL DEVELOPMENT IN A LENGTHY PROCESS HE SAID NOTING THAT THE JUDGE MADE NO RULING ON THE MERITS OF OUR LAWSUIT A SIMILAR SUIT FILED BY AT&T AGAINST WILLIAMS COS' WILTEL INC UNIT APPARENTLY STILL STANDS BUT IN MARCH WILTEL OF TULSA OKLA SUED AT&T IN US DISTRICT COURT IN TULSA WILTEL IS SEEKING DAMAGES AND INJUNCTIVE RELIEF FROM AT&T FOR SENDING LETTERS TO WILTEL CONTRACT CUSTOMERS THE LETTERS QUESTIONED THE LEGALITY OF THOSE CONTRACTS 9311220031 931122 AMERICA WEST INVESTORS ARE SAID TO HOLD TALKS PHOENIX AMERICA WEST AIRLINES IS TALKING TO FIVE INVESTMENT GROUPS INCLUDING TWO OTHER AIRLINES IN ITS EFFORTS TO EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION A POSSIBLE BIDDING WAR COULD DERAIL THE EFFORTS OF THE PRITZKER FAMILY OF CHICAGO WHICH TRIED IN SEPTEMBER TO BUY OUT CERTAIN AMERICA WEST CREDITORS AND TAKE CONTROL OF THE BOARD AS A PRELUDE TO OWNING THE PHOENIX AIRLINE THE BOARD REJECTED THE PRITZKERS' OFFER SAYING IT WOULD HAVE LOCKED OUT OTHER BIDDERS BUT THE PRITZKERS ARE EXPECTED TO SUBMIT A FORMAL BID BEFORE THE END OF THE YEAR THIS TIME THEY MAY HAVE COMPETITION UAL CORP'S UNITED AIRLINES AND ONE OTHER DOMESTIC US CARRIER ARE CONSIDERING BIDS FOR AMERICA WEST ACCORDING TO PEOPLE FAMILIAR WITH THE PROCEEDINGS IN ADDITION TWO OTHER GROUPS CHARACTERIZED AS PROFESSIONAL INVESTORS ARE ALSO TALKING WITH AMERICA WEST THE COMPANY HAS SAID IT NEEDS ABOUT 150 MILLION IN FRESH CAPITAL TO EMERGE FROM CHAPTER 11 PROTECTION INTEREST IN AMERICA WEST HAS RISEN AS THE COMPANY'S FINANCIAL PERFORMANCE HAS IMPROVED THE AIRLINE HAS POSTED THREE CONSECUTIVE PROFITABLE QUARTERS EARNING 268 MILLION OR 108 A SHARE FOR THE NINE MONTHS COMPARED WITH A YEAREARLIER LOSS OF 1141 MILLION OR 483 A SHARE 9311220030 931122 BUSINESS BRIEF PIONEER ELECTRONIC CORP PRETAX PROFIT PLUNGED 55 DURING THE FISCAL FIRST HALF TOKYOBASED PIONEER ELECTRONIC CORP REPORTED ITS CONSOLIDATED PRETAX PROFIT PLUNGED 55 TO 793 BILLION YEN 739 MILLION IN THE FISCAL FIRST HALF THE COMPANY CITED WEAK SALES OF AUDIO GOODS BECAUSE OF SLUGGISH ECONOMIES IN JAPAN NORTH AMERICA AND EUROPE AND THE RAPID APPRECIATION OF THE YEN WHICH EATS INTO RETURNS FROM OVERSEAS SALES WHEN TRANSLATED INTO THE JAPANESE CURRENCY NET INCOME EDGED UP 07 TO 767 BILLION YEN FROM A YEAR EARLIER IN THE PERIOD ENDED SEPT 30 THE BETTER NET FIGURE IS OWED TO ADOPTION OF NEW US INCOMETAX ACCOUNTING STANDARDS PIONEER SAID SALES FELL 14 TO 25546 BILLION YEN A COMPANY OFFICIAL SAID PIONEER IS STRIVING TO CREATE NEW MARKETS VIA INNOVATIVE PRODUCTS RATHER THAN RETRENCHING BY CUTTING BACK STAFF AS MANY MAJOR JAPANESE COMPANIES ARE DOING 9311220029 931122 PEPPERAND SALT WHEN I ENCOUNTER A SIC BUT JUST NOT TO BE HEARD 9311220028 931122 MARKETING HOME FURNISHINGS BY TERI AGINS SHOWROOMS AT TOTHETRADEONLY DESIGN CENTERS ARE STARTING TO ROLL OUT THE WELCOME MAT FOR CONSUMERS FOR YEARS THE 25 MAJOR US DESIGN CENTERS THAT SPECIALIZE IN 100AYARD DECORATOR FABRICS AND EXPENSIVE CUSTOM FURNISHINGS WERE THE EXCLUSIVE DOMAIN OF INTERIOR DESIGNERS AND ARCHITECTS BUT WITH BUSINESS STAGNANT MOST CENTERS ARE TRYING TO SPUR CONSUMER INTEREST IN HIGHEND GOODS AVAILABLE ONLY IN THEIR SHOWROOMS ONLY HALF OF 1000 CONSUMERS WITH INCOMES OVER 100000 HAD EVER VISITED A DESIGN CENTER ACCORDING TO A 1992 SURVEY BY AMERICA'S RESEARCH GROUP A HOMEFURNISHINGS CONSULTANT MYSTIQUE IS OUT AND GOOD MARKETING IS IN SAYS JOAN KERNS PRESIDENT OF THE WORLD ASSOCIATION OF MERCHANDISE MARTS CENTERS IN SAN FRANCISCO NEW YORK AND OTHER CITIES ADVERTISE SPECIAL CONSUMERAWARENESS DAYS WHEN SHOPPERS ARE INVITED IN TO BROWSE BUT SHOPPERS ARE USUALLY RESTRICTED TO BUYING THROUGH A DECORATOR WHOM SOME CENTERS WILL PROVIDE THAT MEANS CONSUMERS DON'T GET THE FULL DECORATOR DISCOUNT FOR THE SECOND YEAR HOUSE BEAUTIFUL MAGAZINE HAS TEAMED UP WITH CENTERS AND USED ITS EDITORS TO DRAW CROWDS OF 2000 WHO PAY 25 EACH TO ATTEND SEMINARS AND TOUR THE SHOWROOMS AND THIS FALL THE DALLAS DESIGN DISTRICT CENTER OPENED A 2 MILLION MULTIMEDIA THEATER FEATURING MODEL ROOMS AND A LIBRARY A SHOPPING SERVICE ALLOWS CONSUMERS TO GET AS MUCH AS A 33 DISCOUNT IN THE SHOWROOM CENTER WE HAVE TO CHANGE TO MAKE IT FRIENDLY BECAUSE WE'VE BEEN MISSING OUT ON A GREAT OPPORTUNITY SAYS MICHAEL MCADAMS THE CENTER'S PRESIDENT STILL THE PARTING OF THE SOCALLED CHINTZ CURTAIN DOESN'T MEAN DESIGN CENTERS ARE GOING RETAIL SHOWROOMS DON'T LIKE THE HASSLE OF CATERING TO CONSUMERS WHO TAKE LONGER TO SERVE THAN DECORATORS AND THEY'RE AFRAID THAT SELLING DIRECTLY TO CONSUMERS MAY ALIENATE DECORATORS SO FAR CONSUMER TRAFFIC HASN'T AFFECTED MY BUSINESS NOTICEABLY SAYS DAVID KAPLAN PRESIDENT OF BEACON HILL SHOWROOMS BOSTON BUT WE'RE HAPPY TO HAVE THEM IN THE 13 BILLION READYTOASSEMBLE FURNITURE BUSINESS IS MOVING UP IN QUALITY AND MARKET SHARE IT ACCOUNTED FOR 13 OF THE WOODFURNITURE MARKET IN 1991 UP FROM 89 IN 1987 ACCORDING TO THE MOST RECENT INDUSTRY ESTIMATES FORMERLY KNOWN AS KNOCKDOWN FURNITURE IT WAS USED MAINLY FOR STORAGECHEAP BOOKCASES WITH FAKE WOOD FINISHES FOR INSTANCE THAT WERE PERFECT FOR THE COLLEGE DORM ROOM OR A FIRST APARTMENT BUT TODAY'S READYTOASSEMBLE FURNITURE HAS RICHERLOOKING WOODVENEER FINISHES WITH ROUNDED CORNERS BEVELEDGLASS DOORS AND STURDIER CONSTRUCTION PEOPLE ARE NOW PUTTING RTA FURNITURE IN EVERY ROOM IN THE HOUSE SAYS DARCY STERN A CONSUMERPRODUCTS ANALYST AT CHICAGO CORP WHO SAYS SALES HAVE BEEN RISING 12 TO 14 ANNUALLY SHE PUTS THE AVERAGE PRICE FOR A READYTOASSEMBLE OFFICE DESK AT ABOUT 225 COMPARED WITH 900 FOR A FINISHED WOOD DESK MOST READYTOASSEMBLE FURNITURE TAKES ONLY AN HOUR OR TWO TO PUT TOGETHER AND ONE MAKER O'SULLIVAN INDUSTRIES HAS EVEN INTRODUCED VELCRO FASTENERS IN PLACE OF SCREWS JEANS CORDUROYS AND RUGBY STRIPES HAVE MOVED OUT OF THE CLOSET AND INTO THE LIVING ROOM LIKE THE POUF DRESS OF THE '80S FURNITURE FASHIONS THEN WERE FUSSY AND FORMAL WITH FLORAL CHINTZES TASSELS AND FRINGES NOW IN THE MINIMALIST '90S FURNITURE FASHIONS ARE COPYING THE LOOK OF THE KNOCKAROUND CLOTHES THAT PEOPLE LIKE TO WEAR SOME FURNITURE LOOKS PURE GAP CHAIRS AND SOFAS COVERED IN FADED DENIM BAGGY KHAKI SLIPCOVERS AND CORDUROY OTTOMANS HAVE BEEN INTRODUCED UNDER LICENSING AGREEMENTS WITH APPAREL MAKERS BY SHERRILL FURNITURE WITH THE RUFF HEWN BRAND AND LANE WITH THE GEAR BRAND LAST JULY IN DOWNTOWN SAN FRANCISCO THE EMPORIUM STORE FILLED ALL ITS WINDOWS WITH SOFAS CHAIRS AND TABLES FROM BERNHARDT'S READY FOR WEAR COLLECTION OF DENIM NATURAL COTTON AND RUGBYSTRIPED FURNITURE SHOPPERS FLOCKED TO THE FURNITURE DEPARTMENT ON THE THIRD FLOOR TO BUY THE MOST POPULAR ITEMS A 1200 HANDPAINTED SOFA IN NATURAL COTTON AND 400 DENIM SLIPCOVERS WE'VE NEVER SEEN SO MANY IMPULSE PURCHASES FOR FURNITURE SAYS MICHAEL NICOTERA A MERCHANDISING VICE PRESIDENT AT CARTER HAWLEY HALE STORES WHICH OWNS EMPORIUM THE DREAM STORE FOR HOMEOWNERS ONE THAT CAN PROVIDE CUSTOMIZED FURNITURE AT REASONABLE PRICES WITHOUT A LONG WAIT NOW A GROWING NUMBER OF RETAILERS ARE TRYING TO FILL THE BILL AMONG THEM IS EXPRESSIONS A 55STORE CHAIN BASED IN METAIRIE LA THAT PROMISES CUSTOMIZED UPHOLSTERED FURNITURE DELIVERED IN 45 DAYS SHOPPERS CAN CHOOSE FROM 40 CHAIR AND SOFA STYLES OR WITH THE HELP OF THE STORE'S DECORATORS DESIGN THEIR OWN SOFAS CHAIRS AND BED HEADBOARDS EXPRESSIONS MAKES ITS UPHOLSTERED FURNITURE IN ITS OWN FACTORIES WHICH ALLOWS IT TO PROVIDE SPEEDIER DELIVERY AND LOWER COST ON AVERAGE FOR EXAMPLE ABOUT 1200 FOR A SOFA IN A TYPICAL FURNITURE STORE IT'S WHAT YOU SEE IS WHAT YOU GET SAYS KENNETH KWIT EXPRESSIONS' CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUT WE LET YOU HAVE IT YOUR WAY CLASSIC SOFA A FACTORY SHOWROOM BASED IN NEW YORK SPECIALIZES IN ENGLISH STYLE CUSTOMMADE SOFAS WITH DELIVERY IN JUST TWO WEEKS BESIDES DECORATORS AND CONSUMERS THE STORE IS POPULAR WITH BROADWAY SHOWS AND TV SOAP OPERAS SAYS JEFFREY STONE PRESIDENT WHAT'S HOT NOW THE OVERSTUFFED SHABBY CHIC LOOK A DOWNFILLED SLIPCOVERED SOFA THAT SELLS FOR 2800 9311220027 931122 CREDIT RATINGS DELMARVA POWER & LIGHT CO STANDARD & POOR'S CORP DOWNGRADED ITS DEBT RATING FOR THE WILMINGTON DEL ELECTRIC UTILITY CITING A HIGH DIVIDENDPAYOUT RATIO AND GROWING COMPETITIVE PRESSURES ABOUT 1 BILLION IN DEBT IS AFFECTED OUR FEELING IS THAT TO SUSTAIN AN APLUS RATING THE COST REALLY OUTWEIGHS THE BENEFIT SAID BARBARA GRAHAM CHIEF FINANCIAL OFFICER AT DELMARVA THE ANNOUNCEMENT WAS EXPECTED BUT THE ENTIRE INDUSTRY IS ENTERING INTO A PERIOD OF COMPETITION AND MORE UNCERTAINTY RELATIVE TO THE INDUSTRY OUR POSITION HAS NOT CHANGED S&P LOWERED ITS SENIORSECUREDDEBT RATING FOR DELMARVA TO SINGLEA FROM SINGLEAPLUS AND THE SENIORUNSECUREDDEBT AND PREFERREDSTOCK RATING TO SINGLEAMINUS FROM SINGLEA MEDCO CONTAINMENT SERVICES INC STANDARD & POOR'S CORP RAISED ITS RATING ON ABOUT 130 MILLION OF MEDCO'S SUBORDINATED DEBT TO TRIPLEA FROM TRIPLEB THE RESULT OF THE COMPANY'S ACQUISITION BY THE LARGE PHARMACEUTICAL COMPANY MERCK & CO S&P SAID MOST BORROWINGS USED TO FUND THE CASH PORTION OF THE PURCHASE ARE EXPECTED TO BE REPAID OVER THE NEXT THREE YEARS FROM INTERNALLY GENERATED FUNDS MERCK HAS A CONSERVATIVE FINANCIAL PROFILE WITH CASH AND INVESTMENTS OF MORE THAN 2 BILLION S&P NOTED TRANSCO ENERGY CO HOUSTON SAW THE CREDIT RATINGS ON SENIOR UNSECURED DEBT OF THIS NATURALGAS PIPELINE CONCERN AND SEVERAL OF ITS UNITS RAISED BY STANDARD & POOR'S CORP S&P RAISED ITS RATING ON TRANSCO'S SENIOR UNSECURED DEBT TO SINGLEBPLUS FROM SINGLEB AND AFFIRMED ITS SINGLEBMINUS PREFERRED STOCK RATING S&P ALSO RAISED ITS RATINGS ON TRANSCONTINENTAL GAS PIPE LINE CORP'S SENIOR UNSECURED DEBT TO DOUBLEB FROM DOUBLEBMINUS AND PREFERRED STOCK TO DOUBLEBMINUS FROM SINGLEBPLUS AND RAISED THE RATING ON TEXAS GAS TRANSMISSION CORP'S SENIOR UNSECURED DEBT TO DOUBLEB FROM DOUBLEBMINUS S&P SAID THE UPGRADES REFLECT IMPROVEMENT IN TRANSCO'S CONSOLIDATED FINANCIAL PROFILE THE ELIMINATION OF OVERHANGING LITIGATION AND THE GRADUAL DIVESTITURE OF UNPROFITABLE BUSINESSES S&P SAID PIPELINE OPERATIONS ARE STRONG AND ARE EXPECTED TO CONTINUE GENERATING HEALTHY CASH FLOW S&P SAID DEBT LEVERAGE IS STILL HIGH BUT CASH ON HAND IS PLENTIFUL AND FURTHER FINANCIAL IMPROVEMENT IS EXPECTED AS THE COMPANY EXPLORES EQUITY ENHANCEMENTS WESTERN PUBLISHING GROUP INC STANDARD & POOR'S CORP SAID IT LOWERED THE RATING ON WESTERN PUBLISHING'S 150 MILLION OF 765 SENIOR NOTES DUE 2002 TO DOUBLEB FROM TRIPLEBMINUS AND REMOVED THE RATING FROM CREDITWATCH WHERE IT WAS PLACED IN LATE OCTOBER THE NEW YORKBASED BOOK PUBLISHER DECLINED TO COMMENT THE RATING AGENCY SAID THE DOWNGRADE REFLECTED INCREASED BUSINESS AND FINANCIAL RISK DUE TO THE COMPANY'S CONTINUING PURSUIT OF AN EXPANSION PLAN DESPITE SIGNIFICANT NEGATIVE CASH FLOW UNCERTAINTY REGARDING THE EARNINGS OUTLOOK AND RISING DEBT LEVELS S&P SAID THAT THE RATING OUTLOOK IS NEGATIVE AND THAT FAILURE BY WESTERN PUBLISHING TO MEANINGFULLY STEM NEGATIVE CASH FLOW WOULD PROBABLY PROMPT ANOTHER REVIEW FOR DOWNGRADE 9311220026 931122 INTERNATIONAL ERICSSON SHARES TUMBLE BY 14 ON PROFIT FORECAST SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SHARES IN TELEFON AB LM ERICSSON PLUNGED 14 IN STOCKHOLM TRADING FRIDAY PROMPTED BY A SIMILAR TREND ON WALL STREET THE DAY BEFORE INVESTORS WERE DISAPPOINTED BY THE SWEDISH TELECOMMUNICATIONS COMPANY'S FOURTHQUARTER OUTLOOK GIVEN ALONG WITH ITS NINEMONTH EARNINGS REPORT RELEASED LAST WEEK WHILE ERICSSON REPORTED A HUGE JUMP IN PRETAX PROFIT IN LINE WITH EXPECTATIONS IT SAID FULLYEAR EARNINGS WOULD MERELY DOUBLE FROM 13 BILLION SWEDISH KRONOR 163 MILLION LAST YEAR THAT APPARENTLY POPPED A BUBBLE FOR MANY BROKERS AND INVESTORS WHO HAD BEEN ANTICIPATING A TRIPLING OR EVEN QUADRUPLING OF RESULTS IN STOCKHOLM FRIDAY THE SHARES CLOSED AT 358 KRONOR DOWN 55 KRONOR ERICSSON'S FAILURE TO UPGRADE ITS FULLYEAR PROFIT FORECAST WAS INTERPRETED AS A DOWNGRADE SAID AN ANALYST WITH A STOCKHOLM BANK ON THURSDAY ERICSSON SAID THIRDQUARTER PRETAX PROFIT SOARED TO 569 MILLION KRONOR FROM 63 MILLION KRONOR A YEAR EARLIER FOR THE FIRST NINE MONTHS PRETAX PROFIT ROSE TO 186 BILLION KRONOR FROM 122 MILLION KRONOR THE PREVIOUS YEAR IN NASDAQ STOCK MARKET TRADING FRIDAY ERICSSON'S AMERICAN DEPOSITARY RECEIPTS CLOSED UNCHANGED AT 42625 9311220025 931122 NAFTA COOLS ENTHUSIASM OF LABOR FOR HEALTH PLAN WASHINGTON AFLCIO SECRETARYTREASURER THOMAS DONAHUE SAID THAT BITTERNESS OVER THE NORTH AMERICAN FREE TRADE AGREEMENT HAS SLOWED LABOR'S LOBBYING EFFORTS IN SUPPORT OF PRESIDENT CLINTON'S HEALTHCARE PLAN MR CLINTON'S VIGOROUS SUPPORT OF NAFTA WHICH THE AFLCIO OPPOSED HAS CAUSED A VERY SERIOUS RUPTURE BETWEEN MR CLINTON AND WORKING AMERICANS MR DONAHUE SAID YESTERDAY ON NBC NEWS'S MEET THE PRESS THE FREETRADE PACT WAS NOT A SIMPLE PIECE OF LEGISLATION ABOUT WHICH YOU CAN SAY WELL WE'LL LET BYGONES BE BYGONES' HE SAID MR DONAHUE SAID HE IS BEING TOLD BY MEMBERS THAT IN THE WAKE OF A DEFEAT THERE'S NO POINT IN TRYING TO GENERATE ENTHUSIASM FOR THE NEXT PROJECT BUT HE ADDED IT'S GOING TO TAKE TIME TO SELL THE CLINTON HEALTH PLAN TO CONVINCE PEOPLE THAT IT'S IN THE INTEREST OF WORKERS TO SUPPORT IT AND THEN I THINK WE WILL BE ABLE TO MOVE FORWARD THE COMMENTS CAME A DAY AFTER 100 HOUSE MEMBERS AND 31 SENATORS ANNOUNCED THEIR SUPPORT FOR MR CLINTON'S HEALTHCARE PLAN WHICH WAS FORMALLY PRESENTED ON CAPITOL HILL SEN JAMES JEFFORDS R VT WAS THE LONE REPUBLICAN TO ADD HIS NAME IN SUPPORT OF THE BILL WHILE REP FORTNEY STARK D CALIF AN OUTSPOKEN CRITIC OF THE CLINTON PLAN ALSO SIGNED ON TECHNICAL CORRECTIONS ACCOMPANYING THE BILL WHICH WAS MADE PUBLIC LAST MONTH INCLUDE TIGHTER CONTROLS ON MEDICARE SPENDING AND ASSURANCES AGAINST ABUSE OF LAWS GOVERNING INDEPENDENT CONTRACTORS 9311220024 931122 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ADVANCED TECHNOLOGY MATERIALS INC INITIAL 2 MILLION SHARES VIA NEEDHAM & CO AND ADVEST INC ALSO 34 MILLION SHARES VIA SMITH BARNEY SHEARSON INC ALLIANCE SEMICONDUCTOR CORP INITIAL 25 MILLION VIA HAMBRECHT & QUIST INC ATHENA NEUROSCIENCES INC 3 MILLION SHARES VIA PAINEWEBBER INC BASIN EXPLORATION INC 34 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP BOLIVIAN POWER CO 2 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE CABLE DESIGN TECHNOLOGIES CORP INITIAL 3426000 SHARES VIA SMITH BARNEY SHEARSON CASTLE ENERGY CORP 9 MILLION SHARES VIA KIDDER PEABODY & CO INTERMEDIA COMMUNICATIONS OF FLORIDA INC 21 MILLION SHARES VIA BEAR STEARNS & CO IRVINE APARTMENT COMMUNITIES INC INITIAL 106 MILLION SHARES VIA MORGAN STANLEY & CO JP REALTY INC INITIAL 9550000 SHARES VIA MERRILL LYNCH & CO LCI INTERNATIONAL INC 35 MILLION SHARES VIA BEAR STEARNS LUTINE CAPITAL CORP INITIAL 125 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE MACERICH CO INITIAL 129 MILLION SHARES VIA LEHMAN BROTHERS MARTEK BIOSCIENCES CORP INITIAL 27 MILLION SHARES VIA HAMBRECHT & QUIST BEAR STEARNS AND SALOMON BROTHERS INC MUSICLAND STORES CORP 8 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE PACIFIC GULF PROPERTIES INC INITIAL 5350000 SHARES VIA ALEX BROWN & SONS INC PRIME RETAIL INC INITIAL 135 MILLION SHARES VIA GOLDMAN SACHS & CO QUIKTURN DESIGN SYSTEMS INC INITIAL 24 MILLION SHARES VIA MORGAN STANLEY SIGNET STAR HOLDINGS INC INITIAL 59 MILLION SHARES VIA SALOMON BROTHERS REGIS CORP 2 MILLION SHARES VIA OPPENHEIMER & CO TACO CABANA INC 2 MILLION SHARES VIA MONTGOMERY SECURITIES TCW/DW TERM TRUST 2003 INITIAL 10 MILLION SHARES VIA DEAN WITTER REYNOLDS INC UNION SWITCH & SIGNAL INC INITIAL 3250000 SHARES VIA LEHMAN UTI ENERGY CORP INITIAL 29 MILLION VIA BEAR STEARNS BURLINGTON MOTOR CARRIERS INC 100 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH HS RESOURCES INC 75 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA LEHMAN SPECIALTY EQUIPMENT CO 185 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH WHEELINGPITTSBURGH STEEL CORP 250 MILLION OF 10YEAR SENIOR NOTES VIA MERRILL LYNCH ILLINOIS HOUSING DEVELOPMENT AUTHORITY 103 MILLION OF MULTIFAMILY HOUSING BONDS VIA A BEAR STEARNS GROUP NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 70 MILLION OF REVENUE BONDS VIA A CHEMICAL SECURITIES INC GROUP NORFOLK VA 67 MILLION OF WATER REVENUE BONDS VIA A MORGAN STANLEY GROUP OHIO 140 MILLION OF GENERAL OBLIGATION BONDS VIA A PAINEWEBBER GROUP SACRAMENTO COUNTY SANITATION DISTRICT FINANCING AUTHORITY CALIF 225 MILLION OF REVENUE BONDS VIA A MERRILL LYNCH GROUP 9311220023 931122 GUINNESS COMMERCIAL PAPER LONDON GUINNESS PLC IS TO ESTABLISH A 1 BILLION EURO COMMERCIAL PAPER PROGRAM TO REFINANCE EXISTING SHORTTERM BORROWINGS THE UK DRINKS COMPANY SAID THE PROGRAM WILL BE ARRANGED BY NATWEST CAPITAL MARKETS LTD WHICH WILL BE A DEALER ALONGSIDE SWISS BANK CORP JP MORGAN SECURITIES LTD DEUTSCHE BANK AG LONDON AND BARCLAYS DE ZOETE WEDD LTD THE PROGRAM HAS BEEN RATED A1PLUS BY STANDARD & POOR'S CORP AND P1 BY MOODY'S INVESTORS SERVICE INC ISSUANCE UNDER THE PROGRAM IS EXPECTED TO BEGIN IN DECEMBER 9311220022 931122 RICOH POSTS 38 RISE IN ITS PRETAX PROFIT FOR FISCAL FIRST HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO RICOH CO THE JAPANESE MAKER OF OFFICE AUTOMATION EQUIPMENT REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT JUMPED 38 DURING THE FISCAL FIRST HALF ENDED SEPT 30 FROM A YEAR EARLIER DESPITE A FALL IN SALES RESULTS WERE HELPED BY A RISE IN INCOME FROM ROYALTIES AND NARROWED FOREIGNEXCHANGE LOSSES UNCONSOLIDATED PRETAX PROFIT ROSE TO 619 BILLION YEN 577 MILLION FROM 449 BILLION YEN A YEAR EARLIER NET INCOME WAS UP 67 TO 34 BILLION YEN FROM 204 BILLION YEN BUT SALES FELL 12 TO 29525 BILLION YEN FROM 33612 BILLION YEN RICOH NOTING THAT ITS BUSINESS ENVIRONMENT IS LIKELY TO REMAIN SEVERE IN THE SECOND HALF TRIMMED ITS FORECASTS FOR PARENT SALES AND PROFIT FOR THE YEAR BUT A COMPANY SPOKESMAN SAID FRUITS OF RESTRUCTURING BEGUN IN LATE 1991 ARE APPEARING ALLOWING THE COMPANY TO EXPECT GAINS IN PROFIT FOR THE YEAR DESPITE LOWER SALES DUE TO THE YEN'S RISE AND WEAK DEMAND THE COMPANY NOW EXPECTS FULLYEAR UNCONSOLIDATED PRETAX PROFIT TO TOTAL 13 BILLION YEN COMPARED WITH AN EARLIER FORECAST OF 15 BILLION YEN THAT STILL IS UP FROM PRETAX PROFIT OF 1163 BILLION YEN A YEAR EARLIER NET INCOME IS EXPECTED TO TOTAL SEVEN BILLION YEN COMPARED WITH A PREVIOUS FORECAST OF EIGHT BILLION YEN LAST YEAR THE COMPANY HAD NET INCOME OF 495 BILLION YEN A RICOH SPOKESMAN SAID THE YEN'S SHARP RISE DURING THE FISCAL FIRST HALF DEALT A BODY BLOW TO SALES BY CUTTING INTO REVENUE FROM OVERSEAS SALES WHEN TRANSLATED INTO YEN WHILE OVERALL SALES DROPPED 12 DURING THE HALF REVENUE FROM EXPORTS PLUNGED 28 TO 6953 BILLION YEN OR TO 24 OF OVERALL SALES DURING THE YEAREARLIER PERIOD EXPORTS ACCOUNTED FOR 29 OF OVERALL SALES DOMESTIC SALES SLIPPED 57 TO 22572 BILLION YEN 9311220021 931122 ENTERPRISE BILL TO HELP S CORPORATIONS ATTRACT CAPITAL INTRODUCED SENATE MEASURE WOULD PARTLY OFFSET HIGHER TAXES SOME FIRMS NOW FACE BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MORE THAN ONE MILLION SMALL COMPANIES ORGANIZED AS S CORPORATIONS WOULD GET HELP IN ATTRACTING INVESTORS SUCH AS VENTURE CAPITALISTS AND PENSION FUNDS UNDER LEGISLATION INTRODUCED BY TWO US SENATORS THE MEASURE INTRODUCED FRIDAY BY DEMOCRATIC SEN DAVID PRYOR OF ARKANSAS AND REPUBLICAN SEN JOHN DANFORTH OF MISSOURI INVOLVES OVERHAULING 35YEAROLD TREASURY DEPARTMENT TAX RULES THAT THE SENATORS SAY LIMIT THE GROWTH OF THE SMALL COMPANIES FOR EXAMPLE THE BILL WOULD PERMIT TAXEXEMPT ORGANIZATIONS TO BECOME SHAREHOLDERS OF S CORPORATIONS TAX EXPERTS SEE THE BILL AS A KIND OF CONSOLATION PRIZE FOR THOSE COMPANIES S CORPORATIONS' EARNINGS ARE TAXED AS PART OF THEIR SHAREHOLDERS' INDIVIDUAL INCOMES AS A RESULT OF THE 1993 BUDGET BILL SUCH OWNERS FACE A MAXIMUM 396 TAX RATE COMPARED WITH THE 35 RATE LARGER CORPORATIONS WILL PAY WHERE THE POPULARITY OF THIS COMES IN IS WHEN CONGRESS CAN SAY WE MAY HAVE FLEECED YOU IN THE 1993 BILL BUT LOOK WHAT NICE THINGS WE DID FOR YOU LATER' SAYS THOMAS OCHSENSCHLAGER A TAX PARTNER WITH GRANT THORNTON AN ACCOUNTING FIRM AN S CORPORATION IS A FORM OF CORPORATE ORGANIZATION THAT IS TREATED AS A PARTNERSHIP FOR INCOMETAX PURPOSES AND AS A TRADITIONAL CORPORATION FOR LIABILITY AND OTHER PURPOSES THE BILL ISN'T LIKELY TO COME TO A VOTE UNTIL LATE NEXT YEAR HOWEVER THE MEASURE MUST BE ATTACHED TO A GENERAL TAX BILL AND IT IS UNCLEAR WHEN CONGRESS WILL CONSIDER ONE BUT THE BILL'S SENATE SPONSORS ARE OPTIMISTIC THAT THEIR MEASURE WILL GET THE SUPPORT OF THE CLINTON ADMINISTRATION AND THAT THERE WILL BE A COMPANION HOUSE BILL ADMINISTRATION OFFICIALS IN TESTIMONY BEFORE THE HOUSE WAYS AND MEANS COMMITTEE HAVE EXPRESSED GENERAL SUPPORT FOR CHANGING THE SCORPORATION RULES BUT HAVEN'T TAKEN A POSITION ON THE SPECIFIC LEGISLATION THE PRYORDANFORTH BILL IS DESIGNED TO CHANGE CERTAIN TAX RULES TO LET S CORPORATIONS KEEP THEIR RELATIVELY SIMPLE LEGAL FORM AND STILL RAISE THE CAPITAL THEY NEED TO GROW TAX EXPERTS SAY THE MOST IMPORTANT CHANGE IS ONE THAT SAYS WHEN LENDERS OR VENTURE CAPITAL COMPANIES MAKE A TYPE OF LOAN TO AN S CORPORATION KNOWN AS A CONVERTIBLE DEBENTURE THE LOAN WON'T LATER BE CLASSIFIED FOR TAX PURPOSES AS STOCK OR EQUITY IN THE COMPANY THE PROVISION IS IMPORTANT BECAUSE CURRENT IRS REGULATIONS SAY S CORPORATIONS CAN HAVE ONLY ONE CLASS OF STOCK THE CHANGE WILL MAKE VENTURE CAPITALISTS MORE INTERESTED IN INVESTING IN S CORPORATIONS SAYS SAM STARR CHAIRMAN OF THE SCORPORATION TAXATION COMMITTEE FOR THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS A RELATED CHANGE AIMED AT ATTRACTING INDIVIDUAL INVESTORS WOULD LET S CORPORATIONS ISSUE WHAT'S CALLED PLAIN VANILLA PREFERRED STOCK THE STOCK WOULD BE TREATED AS A DEBT INSTRUMENT FOR TAX PURPOSES INSTEAD OF AS ANOTHER KIND OF STOCK SMALL BUSINESS OWNERS CAME HERE LAST WEEK TO BEGIN LOBBYING CONGRESS FOR THE BILL WILLIAM WITMAN CHIEF EXECUTIVE OFFICER OF BICOMP INC A TYPESETTING AND PUBLISHING SERVICE IN YORK PA SAID THE PRYORDANFORTH BILL SHOWS THAT NOT ALL OF WASHINGTON IS ASLEEP AT THE SWITCH IF THIS BILL PASSED WE'LL BE ABLE TO ISSUE NEW TYPES OF DEBT AND EQUITY WE'LL BE ABLE TO TAKE ON NEW FINANCIAL PARTNERS WITHOUT HAVING TO GIVE UP CONTROL OF OUR BUSINESSES HE ADDED ANOTHER IMPORTANT RULE CHANGE WOULD PERMIT FINANCIAL INSTITUTIONS AND TAXEXEMPT ORGANIZATIONS SUCH AS PENSION FUNDS TO BECOME SHAREHOLDERS IN S CORPORATIONS DAVID COPHAM WHO HEADS LIBERTY CHECK PRINTERS IN EDINA MINN SAID THOSE PROVISIONS WOULD LET HIM CREATE A STOCKPARTICIPATION PLAN THROUGH WHICH ALL HIS EMPLOYEES COULD OWN PART OF THE COMPANY S CORPORATIONS CAN'T DO THAT NOW MY EMPLOYEES HAVE EARNED THE RIGHT TO SHARE IN THE COMPANY'S SUCCESSES AND TO TAKE PART IN THE GAINS WE ENVISION DOWN THE ROAD MR COPHAM SAID THE PRYORDANFORTH BILL ALSO WOULD LET S CORPORATIONS HAVE AS MANY AS 50 SHAREHOLDERS UP FROM A LIMIT OF 35 NOW COUNT ALL MEMBERS OF A FAMILY WHO OWN STOCK AS A SINGLE SHAREHOLDER LET NONRESIDENT ALIENS OWN SCORPORATION STOCK 9311220020 931101 SOMALIA'S NEEDLESS DEATHS BY CHARLIE A BECKWITH IT MAKES MY BLOOD BOIL AND BRINGS TEARS TO MY EYES WHEN I VIEW THE TELEVISION NEWS AND READ IN THE MEDIA ALL THE CRITICISM FOCUSED ON THE PERFORMANCE OF THE US RANGERS AND DELTA FORCE IN SOMALIA DESPITE MAJ GEN WILLIAM GARRISON'S RECENT LETTER TO PRESIDENT CLINTON ACCEPTING FULL RESPONSIBILITY FOR THE NOW INFAMOUS RANGER/DELTA OPERATION OF OCT 3 THIS WAS INDEED NOTHING MORE THAN ANOTHER CASE OF US FORCES BEING PLACED UNDER UNITED NATIONS COMMAND AND SUFFERING FOR IT NEWSPAPER ACCOUNTS HAVE PAINTED THE OPERATION AS A LONE US ENDEAVOR BUT THE FACTS SHOW THAT ALTHOUGH THERE WAS A SEPARATE US COMMAND THE RANGER/DELTA OPERATIONS WERE ULTIMATELY SUBJECT TO THE APPROVAL OF A UN AUTHORITY THE RESULT US FORCES WERE PUT INTO A SITUATION WHERE THEY WERE NOT ALLOWED TO PROSECUTE THE MISSION TO THE FULL EXTENT OF THEIR ABILITIES THEY WERE DROPPED INTO A HOSTILE TERRITORY WITH LIMITED RULES OF ENGAGEMENT FORCED TO OPERATE OUTSIDE THEIR NORMAL CHAIN OF COMMAND AND DENIED THE NECESSARY EQUIPMENT THAT IS PART OF THEIR STANDARD OPERATING PROCEDURE AND IF THAT'S NOT ENOUGH THIS WAS ALL INFLICTED ON THEM BY THE CIVILIAN MILITARY LEADERSHIP OF THIS COUNTRY FIRST OF ALL LET'S BE HONEST ABOUT THESE UN MISSIONS THE TRUE SOURCE OF MILITARY MIGHT BEHIND THE UN'S WORDS ARE THE SOLDIERS SAILORS AIRMEN AND MARINES OF THE US ARMED FORCES MR CLINTON'S DECISION TO PLACE AMERICAN COMBAT TROOPS UNDER THE COMMAND OF UN MILITARY OFFICIALS IN SOMALIA WAS OBTUSE EVERY MILITARY FORCE AROUND THE WORLD IS DIFFERENT SOME ARE WELLTRAINED AND OTHERS ARE NOT MANY LACK THE LEADERSHIP AND DESIRE NECESSARY TO GET THE JOB DONE IN MULTINATIONAL FORCES THERE IS ALSO USUALLY A LANGUAGE PROBLEM AND DIFFERING VALUES AND RELIGIOUS BELIEFS AS A YOUNG SPECIAL FORCES CAPTAIN IN 196263 I SERVED AS AN EXCHANGE OFFICER WITH THE ELITE BRITISH 22ND SPECIAL AIR SERVICE REGIMENT WHERE NONE OF THESE ISSUES WAS A PROBLEM NEVERTHELESS IT TOOK ME ABOUT THREE MONTHS TO TRULY UNDERSTAND THE INS AND OUTS OF THE REGIMENT IF THE US IS GOING TO CONTINUE TO ACT AS THE WORLD'S POLICEMAN AND IN CERTAIN INSTANCES I AGREE WE SHOULD THEN WE NEED TO ORGANIZE AND TRAIN A MULTINATIONAL FORCE FOR THAT PURPOSE LET'S STOP KIDDING OURSELVES THAT US FORCES AREN'T THE REAL TEETH OF THE UN LET'S STOP PUTTING OUR SOLDIERS IN SITUATIONS LIKE DOWNTOWN MOGADISHU WHICH COULD EASILY BE AVOIDED IF WE ONLY ADMITTED THAT THE UN FIGHTING FORCES AREN'T UP TO SNUFF AND NEED TO MEET US STANDARDS OF READINESS AND EXPERTISE IT IS A GRAVE MISTAKE TO GIVE THE MOST ELITE AND BESTTRAINED SOLDIERS IN OUR ARMY THE TASK OF MENDING POLITICAL FENCES AROUND THE WORLD WITHOUT ENSURING THEY HAVE THE SUPPORT TO BACK THEM UP DELTA OPERATORS AND RANGERS ARE TRAINED TO KILL IT IS IMPERATIVE THAT THEY CARRY ONLY THOSE ITEMS OF EQUIPMENT THAT ARE ESSENTIAL TO ACCOMPLISHING THEIR MISSION WEAPONRY AMMUNITION AND A GOOD SHARP KNIFE IN THIS RESPECT THE OPERATIONS IN AND AROUND MOGADISHU WERE NO DIFFERENT REQUIRING RANGERS AND DELTA OPERATORS TO TRAVEL LIGHT THE DIFFERENCE WAS THAT THEY WERE FORCED TO DEPEND ON OTHER FRIENDLY UN UNITS FOR SUPPORT FIRE AND REINFORCEMENT ONE OF THE MANY PROBLEMS IN MOGADISHU ON OCT 3 STEMMED FROM THE FACT THAT OTHER FRIENDLY FORCES FOR THE REASONS I OUTLINED ABOVE WERE NOT QUICK TO RESPOND HENCE THE RANGER/DELTA CONTINGENT WAS LEFT UNSUPPORTED FOR AN EXTENDED PERIOD OF TIME THE SECOND LESSON OF THE SOMALIA MISSION IS THAT WE SHOULD NOT LEAVE THE MOST VITAL MILITARY DECISIONS THE ACTUAL PLANNING AND EXECUTION OF MILITARY OPERATIONS TO CIVILIANS TO BE SURE OUR DEMOCRATIC PRINCIPLES AND THE CONSTITUTION REQUIRE THAT MILITARY OFFICERS BE ULTIMATELY ACCOUNTABLE TO CIVILIAN LEADERS IN THE PENTAGON BUT THE COMMANDER IN CHIEF AND MEMBERS OF CONGRESS ON THE APPROPRIATE SUBCOMMITTEES SHOULD STRIVE MUCH HARDER TO FILL THESE CIVILIAN POSTS WITH EITHER FORMER MILITARY PERSONNEL OR AT THE VERY LEAST KNOWLEDGEABLE PROMILITARY CIVILIANS WHICH LEADS ME TO MY NEXT POINT THERE WAS ANOTHER SERIOUS FLAW IN THE SUPPORT OF THE SPECIAL OPERATIONS EFFORT IN SOMALIA IT WAS THE POOR PERFORMANCE ON THE PART OF DEFENSE SECRETARY LES ASPIN HE HAS NEVER BEEN A FRIEND OF THE MILITARY ESTABLISHMENT AND FOR THE PAST 20 YEARS AS A MEMBER OF CONGRESS HE LOOKED FOR WAYS TO LIMIT OUR MILITARY SERVICES I WAS NOT SURPRISED TO LEARN THAT HE DISAPPROVED 10 DAYS BEFORE THE OCT 3 FIREFIGHT TWO CRITICAL REQUESTS FROM THE LEADERSHIP OF THE RANGER/DELTA CONTINGENT IN SOMALIA FOR HEAVY ARMOR AND AIR SUPPORT IT WAS DETERMINED FROM THE OUTSET THAT THE SPECIAL OPERATIONS CONTINGENT TASKED WITH CATCHING MOHAMMED FARAH AIDID REQUIRED AN ARMOR PACKAGE AND C130 GUNSHIPS THE RESPONSIBILITY FOR THE LOSS OF 18 SOLDIERS ON OCT 3 RESTS ON MR ASPIN'S SHOULDERS HE SHOULD BE HELD ACCOUNTABLE FOR HIS POOR PERFORMANCE AS DEFENSE SECRETARY AND RESIGN FINALLY THERE HAS BEEN MUCH CRITICISM IN THE PRESS AND FROM PENTAGON PERSONNEL OF THE DECISION TO SURROUND AND DEFEND A HELICOPTER FROM THE 160TH SPECIAL OPERATIONS AVIATION REGIMENT THAT WAS DOWNED BY A ROCKETPROPELLED GRENADE FIRED BY GEN AIDID'S FORCES TO FIND THE PROBLEM WITH THE OPERATION AND I BELIEVE TO LET THE ADMINISTRATION OFF THE HOOK MANY HAVE CITED THE FACT THAT AFTER THE WOUNDED WERE EVACUATED THE RANGERS DECIDED TO STAY WITH THE BODY OF THE DEAD PILOT WAITING FOR REINFORCEMENTS AND PROPER RESCUE EQUIPMENT TO PRY THE BODY LOOSE FROM THE WRECKAGE MORE OFFENSIVE YET AS REPORTED IN THE PRESS A SENIOR PENTAGON OFFICIAL WHO HAD THE DISDAIN TO REMAIN ANONYMOUS WAS CRITICAL OF THE RANGERS' PLANNING AND TECHNIQUES CALLING THE DECISION TO STAY BY THE DEAD PILOT EMOTIONAL FAR FROM CRITICIZING SUCH ACTIONS I MUST AGREE WITH RANGER PLATOON SGT ROBERT GALLAGHER WHO DEFENDED HIS FELLOW RANGERS AT THE CRASH SITE SOME PEOPLE MAY THINK IT IS NOT NORMAL TO STICK AROUND A DEAD PILOT SGT GALLAGHER WAS QUOTED AS SAYING IN NEWSPAPER ACCOUNTS BUT WHEN YOU WORK WITH PEOPLE ON A DAILY BASIS YOU DEVELOP A BOND WHETHER YOU ARE KILLED OR WOUNDED YOU NEED TO HAVE SOMEONE LOOK AFTER YOU GOD BLESS YOU SGT GALLAGHER AND TO HELL WITH THE CRITICS AS FAR AS I'M CONCERNED ANY MILITARY PERSONNEL MUCH LESS CIVILIANS WHO HAVE NEVER SEEN COMBAT WHO CRITICIZE THE PERFORMANCE OF THE RANGER/DELTA UNIT DURING THE OCT 3 BATTLE IN MOGADISHU HAVEN'T A LEG TO STAND ON FOR 11 HOURS AND WITHOUT ANY SUPPORT THAT UNIT HELD OFF A NUMERICALLY SUPERIOR ENEMY FORCE WHILE THE BATTLE TOOK A HEAVY TOLL THIS WAS IN FACT THE FIRST TIME THAT MANY OF THESE YOUNG RANGERS HAD SMELLED THE SMOKE AND HEARD THE CRACK OF AN ENEMY BULLET AND WHEN THE RELIEF FORCE DID SHOW UP IT IS WELL DOCUMENTED THAT THE PAKISTANI SOLDIERS IN THE M48 TANKS FAILED TO ENGAGE GEN AIDID'S FORCES WITH THE FEROCITY THAT US FORCES WOULD HAVE DISPLAYED AND DESPITE ALL THIS THE RANGERS LOST ONLY 18 MEN DAMN IMPRESSIVE MEANWHILE THE PRESS IS QUICK TO BURY THE FACT THAT THIS UNIT INFLICTED CLOSE TO 1000 CASUALTIES ON GEN AIDID'S FORCES ABOUT 300 DEAD AND 700 WOUNDED POSSIBLY MORE THAT'S A 10TO1 KILL RATIO I DEFY ANY OTHER COUNTRY IN THE WORLD TO PUT A UNIT IN THE SAME SITUATION AND HAVE EVEN ONE SOLDIER WALK OUT ALIVE ONE THING SHOULD BE MADE CLEAR TO THE CITIZENS OF THE US WE SHOULD BE VERY PROUD OF THE JOB THESE YOUNG RANGERS AND DELTA OPERATORS DID IN SOMALIA IN SPITE OF ALL THE PROBLEMS THEY FACED AND THOSE WHO DIED REGARDLESS OF WHAT THIS ADMINISTRATION WOULD LIKE YOU TO BELIEVE DID SO NOT BECAUSE OF A LACK OF TRAINING OR UNNECESSARY HEROICS BUT BECAUSE THEY WERE PUT IN AN IMPOSSIBLE SITUATION BY CIVILIAN AUTHORITIES WHO DON'T KNOW THE FIRST THING ABOUT CONDUCTING A PRECISE PARAMILITARY OPERATION OR WHEN SUCH AN OPERATION IS CALLED FOR THE BLOOD OF THOSE RANGER AND DELTA FORCE PERSONNEL WHO DIED IN THE STREETS OF MOGADISHU PROTECTING A COMRADE THEY HAD THE UTMOST TRUST IN AND RESPECT FOR IS ON THE HANDS OF THIS ADMINISTRATION COL BECKWITH A 29YEAR ARMY VETERAN WAS A RANGER AND GREEN BERET HE FOUNDED TRAINED AND COMMANDED THE DELTA FORCES AND IS COAUTHOR OF DELTA FORCE DELL 1985 SEE RELATED LETTERS LETTERS TO THE EDITOR BLACK DAYS FOR THE BLUE HELMETS WSJ NOV 22 1993 9311010029 YY93 MM11 9311220019 931122 BUSINESS BRIEFS BAREFOOT INC WORTHINGTON OHIO BOUGHT ITS FRANCHISE OPERATIONS IN DETROIT TOLEDO OHIO BIRMINGHAM ALA AND MEMPHIS TENN THE PURCHASE OF BAREFOOT'S FRANCHISES WHICH GENERATED ABOUT 7 MILLION IN REVENUE IN 1993 WILL TAKE EFFECT JAN 1 1994 PNC BANK CORP PITTSBURGH ACQUIRED GATEWAY FED CORP CINCINNATI AND ITS SUBSIDIARY GATEWAY FEDERAL SAVINGS BANK FOR 539 MILLION SHAREHOLDERS OF GATEWAY FED WHICH HAD ASSETS OF 514 MILLION AS OF SEPT 30 WILL RECEIVE 3060 IN CASH FOR EACH SHARE OF GATEWAY FED COMMON STOCK NATIONAL RECORD MART INC PITTSBURGH COMPLETED ITS ACQUISITION OF A NINESTORE CHAIN OF MALLBASED SPECIALTY MUSIC STORES FROM LEONARD SMITH INC OF ALBANY NY TERMS WERE NOT DISCLOSED FOAMEX LP FOAM PRODUCTS EAST PROVIDENCE RI COMPLETED ITS ACQUISITION OF PERFECT FIT INDUSTRIES INC MONROE NC A UNIT OF VESTAR CAPITAL PARTNERS INC FOR ABOUT 69 MILLION IN STOCK AND CASH THE AGREEMENT ALSO INCLUDES ISSUANCE OF COMMON STOCK AND REPAYMENT OF DEBT LUKENS INC'S ENERGY COATINGS CO UNIT COATESVILLE PA SOLD ITS ASSETS IN NAPA CALIF TO NAPA PIPE CORP A SUBSIDIARY OF OREGON STEEL MILLS INC TERMS OF THE SALE WERE NOT DISCLOSED KASLER HOLDING CORP HIGHLAND CALIF WON THE CONTRACT FOR A LOS ANGELES COUNTY FREEWAY PROJECT WITH A LOW BID OF 263 MILLION THE PROJECT WHICH CALLS FOR CONSTRUCTION OF A 1200FOOT CARPOOL LANE IS SLATED FOR JANUARY 1994 TO MID1996 9311220018 931122 LAW LEGAL BEAT NAFTA WILL PRODUCE MORE WORK FOR LAWYERS IN CERTAIN SPECIALTIES BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL WHAT SHOULD LAWYERS EXPECT FROM NAFTA MORE WORK NATURALLY BUT ONLY FOR THOSE WITH SPECIALTY AREAS THAT SUDDENLY WILL BE IN GREATER DEMAND UNTIL NOW THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT HAS REMAINED LARGELY WITHIN THE BAILIWICK OF LAWYERS BASED IN WASHINGTON DC THESE LAWYERS MANY WITH TRADERELATED EXPERIENCE WERE IN THE THICK OF THE PRO AND ANTINAFTA LOBBYING ON BEHALF OF CLIENTS THEY ALSO HAVE BEEN BUSY ANSWERING INQUIRIES FROM SUCH CLIENTS ON WHAT THE PACT WILL MEAN FOR THEM ONCE THESE TRADE LAWYERS CATCH UP ON THEIR SLEEP THEY ARE LIKELY TO CONFRONT A DIFFERENT SET OF PROBLEMS ROBERT E HERZSTEIN A PARTNER IN THE WASHINGTON OFFICE OF SHEARMAN & STERLING SPECULATES THAT INCREASED USMEXICO COMPETITION WILL GENERATE MORE FIGHTS OVER WHETHER COMPANIES ARE SELLING GOODS BELOW COST OR AT LOWER PRICES ACROSS THE BORDER THAN THEY ARE SELLING THEM AT HOME SO HE SAYS THERE MAY BE A RAFT OF SOCALLED ANTIDUMPING CASES BY COMPANIES THREATENED BY FOREIGN COMPETITORS' LOWER PRICES WHEN AGREEMENTS TAKE DOWN TARIFF BARRIERS YOU SOMETIMES SEE INDUSTRIES THAT WANT TO MAINTAIN PROTECTIONS LOOKING FOR WAYS TO DO SO SAYS MR HERZSTEIN WHO REPRESENTED MEXICO'S SECRETARY OF COMMERCE IN THE NAFTA NEGOTIATIONS MR HERZSTEIN ALSO SEES WORK FOR LAWYERS WITH CUSTOMS EXPERTISE WHO WILL HAVE TO CONFRONT ARCANE QUESTIONS ABOUT WHETHER VARIOUS PRODUCTS QUALIFY FOR TARIFF REDUCTIONS PRODUCTS MADE IN NORTH AMERICA WILL BE SUBJECT TO A SCHEDULE OF SUCH REDUCTIONS BUT DETERMINING WHERE A PRODUCT IS MANUFACTURED IS NOT SO EASY THESE DAYS BECAUSE COMPONENTS OFTEN ARE SHIPPED FROM ABROAD LAWYERS WILL BE NEEDED TO INTERPRET SOCALLED RULES OF ORIGIN COMPLEX GUIDELINES THAT WILL HELP DETERMINE WHETHER TARIFF REDUCTIONS APPLY MOST OF THE WORK FOR LAWYERS HOWEVER WILL BE IN NONTRADE AREAS NAFTA NOTES FORMER US TRADE REPRESENTATIVE CARLA HILLS SHOULD CREATE ENTREPRENEURIAL OPPORTUNITIES FOR ATTORNEYS ANY LAW FIRM THAT HAS DONE CROSSBORDER INVESTMENT OR MERGER WORK WILL BE ABLE TO PLAY THE NAFTA GAME MORE OF THE WORK IS EXPECTED TO INVOLVE TRADE WITH MEXICO RATHER THAN CANADA WITH WHICH THE US ALREADY HAS A TRADE AGREEMENT A FEW FIRMS ARE UNIQUELY POSITIONED TO GO AFTER NAFTAINSPIRED BUSINESS BAKER & MCKENZIE THE CHICAGO LAW FIRM WITH OFFICES WORLDWIDE HAS FOUR OFFICES IN MEXICO TWO NEAR THE BORDER IN MEXICO ARE ALREADY VERY BUSY REPRESENTING COMPANIES ATTRACTED BY THE SOCALLED MAQUILADORA PROGRAM WHICH CREATED ZONES IN NORTHERN MEXICO TO PRODUCE GOODS LARGELY TARIFFFREE FOR SHIPMENT TO THE US BUT PARTNER ROBERT W COX EXPECTS THAT NAFTA ALSO WILL GIVE A BOOST TO THE FIRM'S INTERIOR OFFICES ITS LONGTIME BRANCH IN MEXICO CITY AND YEAROLD OFFICE IN MONTERREY ONE OF THE FEW OTHER US FIRMS WITH A TOEHOLD IN MEXICO IS GRAY CARY AMES & FRYE BASED IN SAN DIEGO WHICH HAS SPENT THE PAST SEVERAL YEARS BUILDING ITS MEXICAN PRACTICE THE FIRM NOW HAS AN EIGHTLAWYER USMEXICAN PRACTICE GROUP AND AN OFFICE IN TIJUANA GRAY CAREY ALSO HAS A CONSULTING BUSINESS IN MEXICO CITY THAT HELPS MIDMARKET BUSINESSES DEVELOP AND EVALUATE OPPORTUNITIES IN MEXICO LIKE TRANSACTIONAL AND TRADE LAWYERS ENVIRONMENTAL SPECIALISTS ALSO ARE EXPECTED TO BENEFIT FROM NAFTA THE AGREEMENT AND THE RELATED ENVIRONMENTAL ACCORD MEANS THAT THERE WILL BE MORE VIGILANT ENVIRONMENTAL ENFORCEMENT AND A LOT MORE MONEY DEVOTED TO ENVIRONMENTAL CLEANUP EFFORTS IN ADDITION LITIGATORS ARE ALREADY PLANNING FOR THE DISPUTES THAT WILL INEVITABLY ARISE WHEN CROSSBORDER BUSINESS PARTNERSHIPS TURN SOUR NOT ALL COMMERCIAL LITIGATORS WILL GET THE CALL HOWEVER ESPECIALLY EXCITED ABOUT NAFTA ARE LAWYERS WITH INTERNATIONALARBITRATION EXPERIENCE THE NEW CROSSBORDER TRANSACTIONS WILL HAVE A ROLE FOR PEOPLE LIKE ME WHO WILL COUNSEL PEOPLE GOING INTO DEALS ABOUT DISPUTES THAT CAN ARISE FROM THEM SAYS JONATHAN D SCHILLER ONE OF A GROUP OF LITIGATORS MOVING FROM THE WASHINGTON OFFICE OF DONOVAN LEISURE NEWTON & IRVINE TO KAYE SCHOLER FIERMAN HAYS & HANDLER THIS WEEK MR SCHILLER WHO HAS REPRESENTED WESTINGHOUSE ELECTRIC CORP AND OCCIDENTAL PETROLEUM CORP IN INTERNATIONAL ARBITRATIONS EXPECTS HIS GROUP WILL WORK WITH HIS NEW FIRM'S LATIN AMERICAN SPECIALISTS HE AND OTHER WASHINGTON LAWYERS NOTE THAT COMPANIES ENGAGING IN CROSSBORDER TRANSACTIONS ARE USUALLY GOING TO PREFER TO ARBITRATE DISPUTES SO THAT THEY CAN AVOID EACH OTHERS' UNFAMILIAR COURTS FOREIGN COMPANIES ARE QUITE PROPERLY CONCERNED ABOUT BEING CAUGHT IN OUR NATIONAL COURT SYSTEM AND BEING SUBJECT TO PUNITIVE DAMAGES CLAIMS SAYS MR SCHILLER THAT CONCERN IS WORLDWIDE THE MINNEAPOLISBASED LITIGATION FIRM FAEGRE & BENSON IS FORMING AN ARBITRATION AND MEDIATION AFFILIATE TO CAPITALIZE ON BUSINESS CLIENTS' INCREASING DESIRE TO SETTLE DISPUTES OUTSIDE OF THE COURTS THE MOVE IS UNUSUAL BECAUSE IF IT SUCCEEDS IT COULD PUT AT RISK ONE OF FAEGRE & BENSON'S REVENUE SOURCES FEES GENERATED THROUGH BUSINESS AND COMMERCIAL LITIGATION OF COURSE THERE'S A CHANCE THAT THE SELFINTEREST OF LAW FIRMS WILL BE AT RISK IF LAWYERS COME UP WITH AN INNOVATIVE WAY TO SOLVE DISPUTES SAYS JERRY CONOVER THE PARTNER IN CHARGE OF THE DENVERBASED AFFILIATE FAEGRE GROUP MY ANSWER IS WHAT'S THE OPTION' IF LAWYERS DO NOT FIND INNOVATIVE WAYS TO PREVENT AND MANAGE DISPUTES WE WILL BY DEFAULT LEAVE IT TO ACCOUNTING FIRMS AND OTHER SPECIALISTS IN CONFLICT MANAGEMENT IN ADDITION TO ACTING AS ARBITRATORS AND MEDIATORS MEMBERS OF FAEGRE GROUP ARE HOPING TO GO ONE STEP FURTHER BY EMPHASIZING DISPUTE PREVENTION AND DISPUTE MANAGEMENT THE IDEA IS FOR BUSINESS PARTIES THAT ARE ABOUT TO ENTER INTO CONTRACTS TO PLEDGE IN ADVANCE TO TRY TO WORK OUT POTENTIAL FUTURE DISAGREEMENTS THROUGH A MEDIATOR INSTEAD OF THROUGH THE COURTS THE PLEDGES ARE NONBINDING BUT PROVIDE A STRUCTURE FOR MANAGING AND SETTLING DISAGREEMENTS SHORT OF LITIGATION FAEGRE GROUP IS STAFFED BY THREE LAWYERS AND TWO NONLAWYERS WITH BACKGROUNDS IN CONFLICT RESOLUTION MR CONOVER SAID AN APPEALS COURT ORDERED THE DISMISSAL OF A LAWSUIT BY GREENPEACE INC SEEKING TO HALT AN OHIO INCINERATOR RULING THAT CITIZENS' SUITS IN SUCH CASES ARE BARRED BY FEDERAL LAW A PANEL OF THE FEDERAL APPEALS COURT IN CINCINNATI REVERSED A LOWER COURT THAT HAD ORDERED WASTE TECHNOLOGIES INDUSTRIES A UNIT OF VON ROLL LTD OF GERMANY TO STOP RUNNING THE INCINERATOR LOCATED 1100 FEET FROM AN ELEMENTARY SCHOOL THE RULING IS APPARENTLY THE BROADEST APPELLATELEVEL REJECTION OF CITIZENS' SUITS IN SUCH CIRCUMSTANCES THE COURT SAID CITIZENS' SUITS AREN'T ALLOWED UNDER THE FEDERAL RESOURCE CONSERVATION AND RECOVERY ACT OF 1976 SO LONG AS THE HAZARDOUSWASTE FACILITY WENT THROUGH GOVERNMENTPERMIT PROCESSES WASTE TECHNOLOGIES DID SO IN THIS CASE THE COURT DREW ITS CONCLUSION FROM LEGISLATIVE HISTORY AND FROM READING THE 1976 ACT AS A WHOLE THE INCINERATOR DREW NATIONAL ATTENTION LAST YEAR WHEN THE INCOMING CLINTON ADMINISTRATION VOWED TO DEAL WITH SAFETY QUESTIONS RAISED BY ENVIRONMENTALISTS MICK G HARRISON A WASHINGTON ATTORNEY FOR THE GOVERNMENT ACCOUNTABILITY PROJECT A NONPROFIT GROUP THAT HELPED REPRESENT GREENPEACE IN THE LAWSUIT SAID THE ENVIRONMENTAL GROUP IS LIKELY TO SEEK A REHEARING BEFORE THE FULL APPEALS COURT GREENPEACE VS WASTE TECHNOLOGIES SIXTH US CIRCUIT COURT OF APPEALS 933216 MILO GEYELIN AND JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9311220016 931122 INTERNATIONAL TAX ON REVENUES IN EC PROPOSED BY COMMISSION DOCUMENT SUGGESTS LEVIES ARE A WAY TO REDUCE RISING UNEMPLOYMENT BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS A WITHHOLDING TAX ON FINANCIAL REVENUES IN THE EUROPEAN COMMUNITY IS AMONG SEVERAL NEW FISCAL MEASURES BEING PROPOSED BY THE COMMUNITY'S EXECUTIVE COMMISSION AS A REMEDY FOR RISING UNEMPLOYMENT IN A PAPER TO BE SUBMITTED TO A MEETING OF EC FINANCE MINISTERS TODAY THE COMMISSION ARGUES THAT BADLY NEEDED JOBS CAN ONLY BE CREATED BY REDUCING UNCOMPETITIVE EUROPEAN PRODUCTION COSTS PARTICULARLY THE HEAVY SOCIAL CHARGES BORNE BY EMPLOYERS OFFICIALS SAY THAT AS WELL AS PROPOSING A NEW CAPITALWITHHOLDING TAX THE PAPER ALSO SUGGESTS IMPOSING LEVIES ON THE USE OF ENERGY OR SCARCE RAW MATERIALS AND HIGHER CONSUMER TAXES THE REVENUES FROM THESE TAXES WOULD THEN BE USED TO OFFSET ANY SHORTFALL IN GOVERNMENT INCOME ARISING FROM A REDUCTION IN THE CHARGES LEVIED ON EMPLOYERS THE CONTROVERSIAL PROPOSALS CONTAINED IN A 25PAGE DOCUMENT TITLED GROWTH COMPETITIVITY AND EMPLOYMENT AMOUNT TO A PREVIEW OF A MAJOR REPORT ON EC COMPETITIVENESS THAT JACQUES DELORS THE COMMISSION'S FRENCH PRESIDENT IS SCHEDULED TO MAKE AT A SUMMIT MEETING IN BRUSSELS NEXT MONTH COMMISSION OFFICIALS HINTING THAT THEY ARE TESTING THE WATERS PRIOR TO THE DECEMBER SUMMIT STRESS THE DOCUMENT BEING FLOATED AT TODAY'S MEETING ISN'T THEIR FINAL WORD ONE SENIOR OFFICIAL ADMITS THAT THE WITHHOLDINGTAX PROPOSAL WILL LIKELY BE UNPOPULAR AND IF IMPLEMENTED WOULD PROBABLY SPARK A FLIGHT OF CAPITAL TO TAX HAVENS OUTSIDE THE EC IT WILL BE A BOOST FOR JERSEY AND THE CAYMAN ISLANDS THE OFFICIAL SAYS THE COMMISSION HAS IN THE PAST PROPOSED SIMILAR ECWIDE TAXES ON CAPITAL AND ENERGY BUT THEY HAVE BEEN REJECTED BY GOVERNMENTS LUXEMBOURG IN PARTICULAR IS OPPOSED TO WITHHOLDING TAXES WHICH IT FEARS WOULD HURT ITS STATUS AS A TAX HAVEN INSIDE THE COMMUNITY BUT THE COMMISSION'S RECOMMENDATIONS THIS TIME ARE NONETHELESS SIGNIFICANT BECAUSE THEY ARE INCLUDED IN A COMPREHENSIVE PACKAGE OF MEASURES TO BOOST EMPLOYMENT IN THE EC AT A TIME WHEN ALL GOVERNMENTS ARE STRUGGLING TO FIND WAYS TO COMBAT RISING JOBLESSNESS AND REDUCE THEIR BUDGET DEFICITS UNEMPLOYMENT IN THE 12NATION EC HAS SOARED TO 17 MILLION PEOPLE OR 11 OF THE ACTIVE POPULATION FROM 12 MILLION OR 8 IN THE PAST THREE YEARS ALONE MR DELORS HAS SET A GOAL OF HALVING THE CURRENT UNEMPLOYMENT RATE BY CREATING 15 MILLION JOBS BY THE YEAR 2000 A GOAL HIS AIDES INSIST IS AMBITIOUS BUT REALISTIC APART FROM NEW FISCAL MEASURES TO SHIFT THE BURDEN AWAY FROM EMPLOYERS THE COMMISSION ALSO RECOMMENDS THAT WAGE INCREASES BE KEPT WELL BELOW GAINS IN PRODUCTIVITY AND THAT OFTENRIGID LABORMARKET REGULATIONS BE STREAMLINED AND MADE MORE FLEXIBLE IT ADVOCATES MEASURES TO IMPROVE THE EUROPEAN COMMUNITY'S INFRASTRUCTURE INCLUDING MORE OPEN COMPETITION FOR CONTRACTS BETTER COORDINATION OF RESEARCH AND DEVELOPMENT ACTIVITIES ESPECIALLY IN BIOTECHNOLOGY AND OTHER NEW TECHNOLOGIES AND A REVAMPED SYSTEM OF EDUCATION AND TRAINING TO PRODUCE BETTERSKILLED WORKERS MR DELORS IS COUNTING ON HIS PROVEN ABILITY TO START A DISCUSSION THAT LEADS TO SWEEPING MEASURES HIS LAST BIG INITIATIVE IN THE MID1980S ON CREATING A TRUE COMMON MARKET LEAD TO THE EC'S 1992 PROGRAM THAT UNDER THE COMMISSION'S AUSPICES REMOVED HUNDREDS OF INTERNAL BARRIERS TO TRADE BETWEEN MEMBER NATIONS THE MEASURES TO COMBAT UNEMPLOYMENT AND BOOST EUROPEAN COMPETITIVENESS DIFFER FROM THE 1992 PROJECT HOWEVER IN THAT THE COMMISSION ITSELF MAY NOT HAVE A BIG ROLE TO PLAY OTHER THAN INITIATING THE DISCUSSION SOCIALWELFARE POLICIES DIFFER WIDELY FROM ONE EC NATION TO THE NEXT AND THEY ARE SO POLITICALLY SENSITIVE THAT COMMISSION OFFICIALS REALIZE THEY WON'T BE ABLE TO IMPOSE THEIR RECOMMENDATIONS BUT THEY ARE HOPING THE COMMISSION'S ANALYSIS OF THE PROBLEMS WILL PROVE SO CONVINCING IN THE PRESENT DEPRESSED POLITICAL AND ECONOMIC CLIMATE THAT AT LEAST SOME OF THE PROPOSED REMEDIES WILL BE ACCEPTED BY GOVERNMENTS THE IDEA FOR A NEW WITHHOLDING TAX IS BASED ON THE COMMISSION'S FINDING THAT CAPITAL ISN'T TAXED NEARLY AS HEAVILY AS LABOR IN THE EC AND THAT THIS MAY ACCOUNT FOR PART OF THE UNEMPLOYMENT PROBLEM THE PROPOSAL IS LIKELY TO BE OPPOSED BY SOME EC NATIONS THAT HAVE MADE STRENUOUS EFFORTS TO BECOME FINANCIAL HAVENS PARTICULARLY LUXEMBOURG BUT A SENIOR OFFICIAL CLOSE TO MR DELORS WHO HAS BEEN INSTRUMENTAL IN DRAFTING THE DOCUMENT NOTES THAT MOST EC NATIONS ALREADY HAVE SOME WITHHOLDING TAXES ON CAPITAL AND THAT THE PROPOSAL WOULD MAINLY BE A QUESTION OF REALLOCATING THE REVENUES IN PARTICULAR HE SAYS THE SOCIAL CHARGES EMPLOYERS MUST PAY FOR LOW OR UNSKILLED WORKERS ARE OFTEN AS HIGH AS THE ONES FOR SKILLED WORKERS THIS ACTS AS A MAJOR DISINCENTIVE TO COMPANIES THAT EMPLOY UNSKILLED LABOR THE COMMISSION BELIEVES SMALL AND MEDIUMSIZE COMPANIES IN PARTICULAR HAVE REACTED TO THE PRESENT SYSTEM BY PARING THEIR WORK FORCES SHARPLY AND HAVE BEEN INCREASINGLY RELOCATING PRODUCTION TO COUNTRIES WHERE PRODUCTION COSTS ARE MUCH LOWER 9311220015 931122 TECHNOLOGY & HEALTH WHITE HOUSE CALLS FOR PUSH TO EXPORT POLLUTION CONTROLS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION DECLARING US ENVIRONMENTAL TECHNOLOGY TO BE ONE OF THE MOST ATTRACTIVE AREAS IN WHICH TO FOCUS THE US GOVERNMENT'S EXPORTPROMOTION EFFORTS WILL CALL FOR GREATER FEDERAL SUPPORT OF THE INDUSTRY'S EFFORTS TO SELL ITS PRODUCTS ABROAD THE RECOMMENDATION IS INCLUDED IN A REPORT TO BE ISSUED TODAY THAT WAS JOINTLY PRODUCED BY THE COMMERCE AND ENERGY DEPARTMENTS AND THE ENVIRONMENTAL PROTECTION AGENCY THE DETAILS OF THE PLAN AS OUTLINED IN THE REPORT ARE SKETCHY AT THIS POINT THEY INCLUDE PROVIDING MORE FLEXIBILITY IN REGULATING USERS OF NEW ENVIRONMENTAL TECHNOLOGY INCREASING THE AVAILABILITY OF TEST SITES AND PERMITS THAT ALLOW COMPANIES TO DEVELOP INNOVATIVE NEW METHODS OF POLLUTION CONTROL AND CREATION OF AN ENVIRONMENTAL TRADE ADVISORY COMMITTEE TO PROVIDE ADVICE TO THE FEDERAL GOVERNMENT ON HOW TO CREATE PROGRAMS AIMED AT EXPANDING EXPORTS OF US POLLUTIONCONTROL TECHNOLOGY FURTHER DETAILS OF THE PLAN ACCORDING TO THE DOCUMENT WILL BE DEVELOPED IN JOINT GOVERNMENTBUSINESS DIALOGUE IN THE COMING WEEKS AND MONTHS THE US ENVIRONMENTALPROTECTION INDUSTRY IS AMONG THE NATION'S MOST ROBUST EXPORT SECTORS ACCORDING TO AN EPA STUDY ISSUED THIS YEAR THE INDUSTRY HAD A 11 BILLION TRADE SURPLUS IN 1991 THE LAST YEAR FOR WHICH DATA ARE AVAILABLE THAT SAME YEAR THE US SUPPLANTED GERMANY AS THE COUNTRY WITH THE LARGEST TRADE SURPLUS IN ENVIRONMENTALPROTECTION EQUIPMENT ACCORDING TO THE NEW REPORT THE WORLD MARKET IN POLLUTIONABATEMENT EQUIPMENT ESTIMATED AT 200 BILLION TO 300 BILLION IS EXPECTED TO GROW THROUGHOUT THE NEXT DECADE AMONG THE AREAS WITH THE HIGHEST PROJECTED GROWTH ARE BRAZIL THAILAND INDONESIA AND MEXICO WHERE DEMAND FOR ENVIRONMENTAL TECHNOLOGY IS EXPECTED TO GROW PARTLY AS A RESULT OF THE NEWLY APPROVED NORTH AMERICAN FREE TRADE AGREEMENT 9311220014 931122 SPREADING LAYOFFS WAGE CUTS THREATEN LEVERAGE OF GERMANY'S TRADE UNIONS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT CANCELED WAGE PACTS MASS LAYOFFS AND DIM PROSPECTS FOR NEW JOBS ARE OPENING CRACKS WITHIN GERMANY'S TRADE UNION MOVEMENT AS COMPANIES FORCE WORKERS TO CHOOSE EITHER WAGE CONCESSIONS OR MORE JOB CUTS THE PRESSURE CONTINUED FRIDAY WITH ANNOUNCEMENTS OF NEW LAYOFFS BY IBM DEUTSCHLAND GMBH AND THE BASF AG CHEMICAL GROUP IG METALL CHAIRMAN KLAUS ZWICKEL ON FRIDAY WARNED OF SLIPPING SOLIDARITY AT A LEADERSHIP CONFERENCE OF THE POWERFUL TRADE UNION FOR THE METALWORKING AUTOMOTIVE ENGINEERING AND ELECTRICAL INDUSTRY IN STUTTGART HE ACCUSED EMPLOYERS OF IGNORING POLICIES AND SUGGESTIONS MADE BY UNION LEADERSHIP AND CUTTING SEPARATE DEALS WITH THEIR INDIVIDUAL WORKERS FOR CUTS IN WAGES AND SOCIAL BENEFITS IF ALLOWED TO CONTINUE THE UNION'S LEVERAGE WOULD BE SERIOUSLY HAMPERED IG METALL WON'T LET THIS HAPPEN MR ZWICKEL SAID WE ARE GOING TO DEFEND OUR WAGE AGREEMENTS HE CALLED ON THE UNION MEMBERSHIP TO CLOSE RANKS AND PREPARE FOR A MAJOR SOCIAL CONFLICT THAT WOULD INCLUDE STRIKES IF NECESSARY GERMANY'S UNIONS FACE A CRISIS AS INDUSTRY RESPONDS TO A DEEP RECESSION AND FALTERING COMPETITIVENESS WITH MASS LAYOFFS AND TRANSFER OF PRODUCTION ABROAD AT STAKE IS A COLLECTIVE BARGAINING SYSTEM IN WHICH NATIONAL UNIONS AND EMPLOYER ASSOCIATIONS DETERMINED INDUSTRYWIDE WAGES BENEFITS AND LEISURE TIME BUT UNIONS NOW FEAR THAT THE INDUSTRY IS ADOPTING A DIVIDEANDCONQUER STRATEGY AS IT MOVES TO CUT LABOR COSTS WHICH INDUSTRY SAYS HAVE BECOME THE HIGHEST IN THE WORLD AFTER YEARS OF UNION PRESSURE FOR HIGHER WAGES AND SHORTER WORKWEEKS VOLKSWAGEN AG SAID IG METALL ORGANIZERS WERE TOLD ANOTHER 30000 JOBS WILL BE CUT UNLESS THEY ACCEPT A FOURDAY WORKWEEK WITH A 20 PAY CUT FOR VOLKSWAGEN'S 103000 DOMESTIC WORKERS LABOR NEGOTIATORS STILL HOPE TO LIMIT THE SIZE OF THE PAY CUT IN TALKS WITH MANAGEMENT AUTO MAKER ADAM OPEL AG THE BIG GERMAN SUBSIDIARY OF GENERAL MOTORS CORP OF THE US LAST THURSDAY WON AN AGREEMENT WITH ITS IG METALL SHOP COUNCIL FACED WITH A THREAT OF MORE LAYOFFS UNDER AN OPEL PLAN TO SOURCE MORE MATERIALS ELSEWHERE LABOR NEGOTIATORS AGREED TO LIMITING ANNUAL PAY INCREASES TO TWOTHIRDS THE INDUSTRYWIDE SETTLEMENT IF IT EXCEEDS 2 WHICH IS ABOUT ONEHALF THE CURRENT INFLATION RATE THAT STANDARD 13TH MONTH SALARY A REGULAR BONUS WILL PARTLY DEPEND ON IMPROVED PRODUCTIVITY INDUSTRY INITIATIVES ARE PUTTING GERMANY'S ONCE POWERFUL UNIONS ON THE DEFENSIVE THE IG BERGBAU MINERS UNION FACING ANOTHER 10000 LAYOFFS ON FRIDAY SAID IT WOULD ACCEPT A SHORTER WORKWEEK WITH A 5 CUT IN PAY AS DUES INCOME FALLS UNIONS THEMSELVES ARE LAYING OFF STAFF THE FEDERATION OF GERMAN TRADE UNIONS THE NATIONAL UMBRELLA ORGANIZATION THIS WEEKEND WAS REPORTED TO BE PLANNING A 10 REDUCTION IN ITS WORK FORCE IG METALL GERMANY'S LARGEST TRADE UNION WITH MORE THAN 33 MILLION MEMBERS IS LOSING ABOUT 20000 WORKERS A MONTH AS GERMANY'S UNEMPLOYMENT TOTAL CLIMBS TOWARD FOUR MILLION UNIONS WARN OF GROWING SOCIAL UNREST AS ANNOUCEMENTS OF JOB CUTS BECOME ALMOST ROUTINE IBM DEUTSCHLAND ANNOUNCED FRIDAY IT WOULD CUT 6000 GERMAN JOBS IN 1994 AND 1995 ON TOP OF 3500 JOB CUTS ALREADY EXPECTED IN 1993 THE MEASURES WOULD TRIM AWAY MORE THAN A THIRD OF INTERNATIONAL BUSINESS MACHINES CORP'S 25000 GERMAN JOBS AT THE BEGINNING OF THIS YEAR THE BIG BASF CHEMICALS GROUP ALSO ANNOUNCED FRIDAY THAT IT PLANS TO SHED ANOTHER 4000 OF ITS 118500 EMPLOYEES IN 1994 AFTER CUTTING ABOUT 4700 WORKERS THIS YEAR THE POWER OF THE UNIONS IS SHAKEN OBSERVED THE CONSERVATIVE FRANKFURTER ALLGEMEINE ZEITUNG NEWSPAPER IN AN EDITORIAL PUBLISHED SATURDAY CLAIMING THAT UNIONS ARE AT LEAST PARTLY RESPONSIBLE FOR THE CURRENT JOBS CRISIS IT SAID ORGANIZED LABOR IS EXHIBITING A KIND OF HELPLESSNESS AS THEY LOSE MANDATES FROM COMPANY TO COMPANY 9311220012 931122 BUSINESS BRIEF MEDTRONIC INC BIOMEDICAL DEVICE CONCERN OFFERS TO BUY ELECTROMEDICS MEDTRONIC INC OFFERED TO BUY ELECTROMEDICS INC FOR CASH OR MEDTRONIC STOCK VALUED AT 6125 A SHARE ELECTROMEDICS AN ENGLEWOOD COLO MAKER OF DISPOSAL MEDICAL DEVICES HAS 141 MILLION SHARES OUTSTANDING THAT GIVES THE OFFER AN INDICATED VALUE OF 862 MILLION ELECTROMEDICS SAID ITS DIRECTORS CONSIDERED THE OFFER THURSDAY AND AUTHORIZED ELECTROMEDICS MANAGEMENT AND ITS FINANCIAL ADVISER DAIN BOSWORTH INC TO DISCUSS THE OFFER WITH MEDTRONIC MANAGEMENT MINNEAPOLISBASED MEDTRONIC MAKES BIOMEDICAL DEVICES IN NASDAQ STOCK MARKET TRADING FRIDAY ELECTROMEDICS CLOSED AT 5875 UP 25 CENTS IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE MEDTRONIC CLOSED AT 7625 UP 50 CENTS 9311220011 931122 THE OUTLOOK FREETRADE IDEA NEEDS A DOMINANT CHAMPION BY HENRY F MYERS NEW YORK THE STRENUOUS EFFORT REQUIRED TO PUSH THE NORTH AMERICAN FREE TRADE AGREEMENT THROUGH CONGRESS AND THE TEDIOUS SEVEN YEARS OF HAGGLING OVER A STILLUNRESOLVED GLOBAL ACCORD CLEARLY INDICATE THAT THE WHOLE NOTION OF REDUCING TRADE BARRIERS IS IN SERIOUS TROUBLE EQUALLY CLEAR ARE SOME SOURCES OF THAT TROUBLE THE SLOW GROWTH OF MOST OF THE WORLD'S MAJOR ECONOMIES INCREASED COMPETITION FROM DEVELOPING COUNTRIES GLOBAL EXCESS CAPACITY IN MOST INDUSTRIES AND AS A RESULT OF ALL THESE FORCES THE POLITICALLY DISRUPTIVE WEAKNESS OF JOB MARKETS AROUND THE WORLD BUT ANOTHER LITTLENOTED PROBLEM MAY ALSO UNDERMINE FURTHER ATTEMPTS TO NEGOTIATE TRADE PACTS AND EVEN TO KEEP COMMERCE AS OPEN AS IT IS NOW NO ONE IS IN A DOMINANT POSITION TO IMPOSE FREE TRADE ONLY TWICE IN HISTORY HAS FREE TRADE HAD SUCH A POWERFUL ADVOCATE ACCORDING TO SUSAN B STANTON AN ECONOMIST AT A GARY SHILLING & CO SHE CITES THE MID19TH CENTURY WHEN BRITAIN REIGNED SUPREME AND THE DECADES FOLLOWING WORLD WAR II WHEN THE US DID BUT SHE WRITES IN THE CONSULTING FIRM'S NEWSLETTER THESE TWO ERAS CLEARLY DEMONSTRATE SEVERAL COMMON THREADS WHICH TO SOME EXTENT TARNISH THEIR GOLDEN IMAGE FIRST IN EACH ONE COUNTRY WAS IN A PECULIARLY POWERFUL POSITION TO PURSUE ITS OWN PARTICULAR POLITICAL AND ECONOMIC GOALS GOALS WHICH FREE TRADE HAPPENED TO SUIT SECOND UNDERCURRENTS OF PROTECTION WERE NEVER FAR FROM THE SURFACE AND THIRD THOSE PROTECTIONIST SENTIMENTS EASILY BROKE THROUGH TO RETURN AS THE ORDER OF THE DAY WHEN THE PRESSURE OF COMPETITION AND OF SLOW ECONOMIC GROWTH WEAKENED THE POWER OF THE WORLD'S LEADER EARLY IN THE 19TH CENTURY MS STANTON NOTES PROTECTIONISM WAS THE NORM MANY COUNTRIES PROHIBITED IMPORTS OF MANUFACTURED GOODS BUT THEN BRITAIN TOOK ADVANTAGE OF ITS INDUSTRIAL HEAD START AND BEGAN LIBERALIZING ITS TRADE IN A SEARCH FOR MARKETS FOR ITS GREATLY INCREASED PRODUCTION AFTER A WHILE OTHER INDUSTRIALIZING NATIONS FOLLOWED WHAT THEY SAW AS ITS PATH TO PROSPERITY AND NEGOTIATED LIBERAL TRADE AGREEMENTS BUT PRODUCTION EXPANDED COMPETITION GREW THE SEARCH FOR MARKETS INTENSIFIED AND MANY OF THE TRADE PACTS EXPIRED IN THE 1890S THE 19THCENTURY TENSIONS MS STANTON WRITES LED TO WORLD WAR I AFTER THE SMOOTHAWLEY TARIFF OF 1930 AND AMID THE DEPRESSION PRESIDENT ROOSEVELT BEGAN LIBERALIZING US TRADE POLICY AND AFTER WORLD WAR II MS STANTON WRITES THE US LIKE 19THCENTURY BRITAIN WAS IN A UNIQUE POSITION TO PUSH FOR LIBERAL TRADE IT HAD VASTLY EXPANDED ITS INDUSTRIAL BASE DURING THE WAR YEARS AND IT BORE THE COST OF FREE TRADE TO HELP REBUILD OTHER NATIONS' ECONOMIES AND FORTIFY COLD WAR ALLIES EVEN THEN PROTECTIONISM LINGERED LIKE NAFTA THE MANY CUSTOMS UNIONS AND FREETRADE BLOCS FORMED DURING THE POSTWAR PERIOD INVARIABLY INCLUDED ESCAPE CLAUSES TO SOFTEN ANY BLOWS AND THE BLOCS PROTECTED THEIR MEMBERS AGAINST NONMEMBERS MUCH AS NAFTA INCLUDES DOMESTICCONTENT PROVISIONS AIMED AT CURBING BACKDOOR IMPORTS FROM JAPAN AND SOUTHEAST ASIA BUT IN THE 1970S THE BRETTON WOODS MONETARY AGREEMENT COLLAPSED AND WITH IT STABLE CURRENCY RATES THE OIL SHOCKS AND SURGING INFLATION FURTHER RATTLED FINANCIAL MARKETS AS OTHER INDUSTRIAL NATIONS NOTABLY JAPAN GREW STRONGER INTERNATIONAL COMPETITION SHARPENED THE ENDING OF THE SOVIET THREAT WEAKENED THE WESTERN ALLIANCES AND DEVELOPING NATIONS STEPPED UP EXPORTS OF MANUFACTURED GOODS NOW THE WORLD'S ECONOMIES ARE FACING THIS STARTLING ARRAY OF CHANGES WITHOUT A DOMINANT NATION ABLE TO UPHOLD FREE TRADE MOREOVER THE ECONOMIC PROBLEMS SPAWNED BY THESE CHANGES AND ENCOURAGING PROTECTIONISM ARE LIKELY TO GET WORSE DAVID D HALE CHIEF ECONOMIST OF KEMPER FINANCIAL COS NOTES THE SUDDEN ENTRY OF THREE BILLION PEOPLE FROM LOWWAGE ECONOMIES SUCH AS CHINA MEXICO AND INDIA INTO THE GLOBAL MARKETPLACE FOR GOODS INDUSTRIES AND SERVICES IS PROVOKING NEW CONCERNS AMONG WORKERS IN THE OLD INDUSTRIAL COUNTRIES ABOUT THEIR LIVING STANDARDS HE ALSO OBSERVES THAT DEMOGRAPHERS PROJECT THAT PRACTICALLY ALL OF THE GROWTH IN THE WORLD LABOR SUPPLY DURING THE NEXT HALFCENTURY WILL OCCUR IN THE DEVELOPING NATIONS NEW TECHNOLOGY WILL PLAY A MAJOR ROLE TOO THE INVASION OF DEVELOPINGWORLD COMPETITORS INTO THE MARKETPLACE WILL BE FACILITATED BY CONTINUING IMPROVEMENTS IN WORLDWIDE COMMUNICATIONS AND ALMOST ACROSS THE BOARD TECHNOLOGICAL CHANGE WILL KEEP WIPING OUT SOME JOBS WHILE CREATING NEW ONES MANY PEOPLE WILL BLAME THE RESULTING TURMOIL IN VARIOUS INDUSTRIES AND JOB MARKETS ON FOREIGN COMPETITION AND IN INDUSTRIAL NATIONS THAT GENERAL MALAISE MAY WELL BE AGGRAVATED BY WIDESPREAD FEARS OF TERRORIST ATTACKS AN ENVIRONMENT THAT WOULD CREATE A SENSE OF BEING UNDER SIEGE WITHOUT A DOMINANT NATION WITH THE ECONOMIC POWER AND SELFINTEREST TO DEMAND FREE TRADE THESE PRESSURES MS STANTON WRITES WILL ENCOURAGE PROTECTIONISM AND THE FORMATION OF INWARDLOOKING TRADE BLOCS AS THE INDIVIDUAL DOMESTIC NEEDS OF COUNTRIES OVERWHELM THEIR INTERNATIONAL OUTLOOK A GROWTH OF PROTECTIONISM WOULDN'T NECESSARILY CAUSE A DISASTROUS DROP IN GLOBAL TRADE HOWEVER THE INCREASE IN PROTECTIONISM AFTER 1870 DID NOT PREVENT A SUSTAINED EXPANSION OF WORLD TRADE MR HALE SAYS BUT IF PROTECTIONISM SPREADS UNCHECKED BY A STRONG PERSISTENT FREETRADE CHAMPION THE GROWTH OF INTERNATIONAL TRADE COULD SLOW DOWN IN COMING DECADES AND THE WORLD'S ECONOMIES WOULD PAY A HEAVY PRICE 9311220010 931122 WHO'S NEWS LSB INDUSTRIES INC LSB INDUSTRIES INC OKLAHOMA CITY RAY B ACKERMAN CHAIRMAN EMERITUS OF ACKERMAN MCQUEEN INC WAS NAMED A DIRECTOR OF THIS DIVERSIFIED COMPANY ENGAGED IN FINANCIAL MANUFACTURING ENGINEERING AND MARKETING SERVICES INCREASING THE BOARD'S SIZE TO NINE 9311220009 931122 PAUL ALLEN SAID TO MULL MAJOR TICKETMASTER STAKE LOS ANGELES TICKETMASTER CORP AND PAUL G ALLEN COFOUNDER OF MICROSOFT CORP ARE NEARING AN AGREEMENT IN WHICH MR ALLEN WOULD PURCHASE A MAJORITY INTEREST IN THE COMPUTERIZED TICKETSELLING COMPANY FOR OVER 275 MILLION ACCORDING TO SOURCES FAMILIAR WITH THE DISCUSSIONS FREDRIC ROSEN TICKETMASTER'S CHAIRMAN AND CHIEF EXECUTIVE DECLINED TO COMMENT MR ALLEN WHO LEFT MICROSOFT IN 1983 AND RECENTLY HAS BEEN INVESTING IN A SERIES OF MULTIMEDIA AND COMMUNICATIONS VENTURES COULDN'T BE REACHED TICKETMASTER HAS FOR SOME TIME BEEN IN DISCUSSIONS WITH VARIOUS PARTIES ABOUT A SALE OF ALL OR PART OF THE COMPANY IT HAS BEEN LOOKING FOR A PARTNER OR BUYER THAT COULD MORE FULLY EXPLOIT ITS EXTENSIVE COMPUTER AND TELEPHONE SELLING NETWORK AND MARKETING CONTRACTS WITH HUNDREDS OF ARENAS AND AUDITORIUMS OBSERVERS SAY THAT TICKETS AS WELL AS OTHER MERCHANDISE COULD EVENTUALLY BE SOLD OVER INTERACTIVE NETWORKS UNDER MR ROSEN TICKETMASTER GREW FROM A SMALL TICKETSELLING OPERATION TO THE INDUSTRY'S DOMINANT PLAYER THE MAJORITY INTEREST IN THE COMPANY IS OWNED BY THE PRITZKER FAMILY 9311220008 931122 CREDIT MARKETS LONG YIELD OF 633 IS CALLED MERELY THE START OF UNJOYOUS HOLIDAY SEASON OF RISING RATES BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE HOLIDAY SEASON WON'T BE ONE OF GOOD CHEER FOR THE BOND MARKET ALTHOUGH THINGS MAY BRIGHTEN A BIT IN THE EARLY PART OF NEXT YEAR BY THE TIME THE NEW YEAR ARRIVES MANY MONEY MANAGERS EXPECT LONGTERM BOND YIELDS TO BE HIGHER THAN THEY ARE NOW YIELDS COULD DROP AGAIN IN THE FIRST QUARTER THEY SAY BUT NOT BY MUCH FEARS THAT THE ECONOMY IS BEGINNING TO GATHER STRENGTH HAVE TURNED INTO A FULLFLEDGED NAILBITING ATTACK FOR THE PEOPLE WHO GET PAID TO WATCH INTEREST RATES ON FRIDAY WITH LITTLE IN THE WAY OF IMPORTANT NEWS THE PRICE OF THE 30YEAR TREASURY BOND PLUNGED MORE THAN 1 1/8 POINTS OR MORE THAN 1125 FOR A BOND WITH A 1000 FACE AMOUNT BOND YIELDS MOVE IN THE OPPOSITE DIRECTION OF PRICES AND FRIDAY'S YIELD OF 633 UP FROM THURSDAY'S 624 WAS THE HIGHEST IN MORE THAN THREE MONTHS MEANWHILE THE PRICE OF THE 30YEAR TREASURY BOND HAS TUMBLED NEARLY EIGHT POINTS SINCE OCT 15 WHEN THE YIELD BOTTOMED AT 579 A LOSS OF ALMOST 80 FOR A BOND WITH A 1000 FACE VALUE THIS MEANS THAT IN TERMS OF THE PRICE AT WHICH THEY COULD SELL THEIR HOLDINGS INVESTORS IN THE PAST FIVE WEEKS HAVE LOST THE EQUIVALENT OF MORE THAN A YEAR OF INTEREST INCOME AT FIRST PEOPLE LIKE JEFF KURINSKY A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES OF BOSTON WERE CONVINCED THAT RECENT SIGNS OF STRENGTH IN THE ECONOMY WERE JUST A TEMPORARY BLIP MR KURINSKY EXPECTED THE ECONOMY TO RETURN IN THE FIRST QUARTER TO THE SAME SLUGGISH PACE OF GROWTH IT HAS EXPERIENCED FOR THE PAST THREE YEARS NOT ANYMORE PEOPLE ARE STARTING TO GET SCARED HERE HE SAYS WE HAD A DISCUSSION ABOUT MACROECONOMICS FRIDAY MORNING AT MFS AND SAW THE EVIDENCE BEGINNING TO MOUNT WE'RE STARTING TO GET MORE AND MORE CONCERNED THAT THIS IS A GENERAL ECONOMIC PICKUP BOND INVESTORS DREAD RAPID ECONOMIC GROWTH BECAUSE IT CAN LEAD TO HIGHER INFLATION WHICH EATS AWAY AT THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN IN THE PAST MONTH MR KURINSKY ESTIMATES MFS HAS UNLOADED SOME 500 MILLION OF 30YEAR TREASURY BONDS MANY OTHER MONEY MANAGERS HAVE BEEN DOING THE SAME RECENTLY THE SELLING MUCH OF IT MOTIVATED BY A DESIRE TO LOCK IN PROFITS AFTER A STRONG YEAR FOR THE BOND MARKET HAS HELPED PUSH TREASURY YIELDS EVEN HIGHER MR KURINSKY SAYS RECENT STRENGTH IN INTERESTRATESENSITIVE SECTORS OF THE ECONOMY SUCH AS HOUSING AND AUTOS HAS STARTED SPREADING TO THE REST OF THE ECONOMY ONE NUGGET HE POINTS TO IS CATALOG SALES BY JC PENNEY CO ACCORDING TO A REPORT FROM CS FIRST BOSTON INC PROVIDED BY MR KURINSKY THE RETAILER'S CATALOG SALES WERE SIGNIFICANTLY ABOVE PLAN AND INCREASED 152 IN THE THIRD QUARTER WE'VE BEEN EXPECTING THIS FOR A WHILE SAYS IAN A MACKINNON HEAD OF FIXEDINCOME INVESTING FOR VANGUARD GROUP OF VALLEY FORGE PA EVERY NEW ECONOMIC REPORT CORROBORATES A RATE OF ECONOMIC GROWTH AS MEASURED BY THE GROSS DOMESTIC PRODUCT OF 3 HE SAYS A YEAR AGO REPORTS WERE CONFIRMING SOMETHING BETWEEN 2 AND 3 IN GDP GROWTH HE RECALLS THANKS TO SUCH ECONOMIC STRENGTH MR MACKINNON PREDICTS THAT THE 30YEAR BOND YIELD COULD BE BETWEEN 650 AND 675 BY YEAR END WE HAVE SEEN THE LOW IN INTEREST RATES SAYS STEVEN RESNICK A FINANCIAL ADVISER TO ORTEK INTERNATIONAL A VENTURECAPITAL FIRM BASED IN TEANECK NJ MR RESNICK PREDICTS THAT THE 30YEAR BOND YIELD COULD RISE AS HIGH AS 650 BY YEAR END AND AS HIGH AS 7 BY THE END OF 1994 SHORTTERM RATES ARE ALSO DEEMED LIKELY TO RISE BUT MORE GRADUALLY BECAUSE INFLATIONARY PRESSURES WILL PROBABLY REMAIN RELATIVELY SUBDUED THROUGH NEXT YEAR WHAT WORRIES MR RESNICK ARE POLITICAL PRESSURES AS TIME GOES ON ALL THIS JOB ANXIETY IS GOING TO LEAD TO MORE AND MORE PRESSURE ON THE POLITICIANS TO CREATE MORE JOBS HE SAYS THERE WILL BE A PERCEPTION AMONG BOND PLAYERS THAT YOU CAN'T HAVE VERY SLOW JOB GROWTH FOREVER HE EXPLAINS AT SOME POINT POLITICIANS HAVE TO GIVE IN HE SAYS AS A RESULT THERE ARE GOING TO BE MORE CONCERNS ABOUT THE RISING RISKS OF REFLATION BEYOND 1994 THERE IS VIRTUALLY NO VALUE IN THE BOND MARKET TODAY SAYS ROBERT RODRIGUEZ MANAGER OF THE 118 MILLION FPA NEW INCOME FUND WITH RATES AS LOW AS THEY ARE THERE IS NO MARGIN FOR ERROR IN CASE THE ECONOMY ACCELERATES AND INFLATIONARY PRESSURES GROW EVEN SLIGHTLY THE LINE OF LEAST RESISTANCE FOR RATES IS UPWARDS AND IT WOULDN'T SURPRISE ME TO SEE 30YEAR BOND YIELDS HEADED TOWARD 7 SOMETIME NEXT YEAR HE SAYS MR RODRIGUEZ SAYS HE HAS ABOUT A THIRD OF HIS FUND'S ASSETS IN HIGHLY LIQUID SHORTTERM INVESTMENTS BECAUSE HE'S UNWILLING TO PUT THEM INTO LONGERTERM SECURITIES THE LAST TIME HE HAD SUCH A BIG POSITION IN VERY SHORTTERM INVESTMENTS WAS IN SEPTEMBER 1986 HE SAYS NOT LONG BEFORE THE BOND MARKET BEGAN A PRECIPITOUS PLUNGE MANY INVESTORS PUTTING MONEY INTO MUTUAL FUNDS LAST WEEK SEEM TO BE FOLLOWING MR RODRIGUEZ'S STRATEGY ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF FIRM THAT TRACKS MUTUALFUND FLOWS INVESTORS POURED NEARLY 105 BILLION INTO THE SAFE HARBOR OF MONEYMARKET FUNDS IN THE WEEK ENDED NOV 17 EVEN THOSE WITH A MORE OPTIMISTIC OUTLOOK LIKE MARK GRANT OF RODMAN & RENSHAW OF CHICAGO AREN'T COUNTING ON SEEING ANY NEW LOWS FOR LONGTERM INTEREST RATES YOU'RE GOING TO SEE A REBOUND WITH THE LONG BOND HEADING BACK TO 6 SAYS MR GRANT WHO IS DIRECTOR OF CAPITAL MARKETS BUT I DON'T THINK WE'LL BE GOING TO 55 AFTER THIS KIND OF BACKUP HE SAYS WE'D NEED MORE ECONOMISTS SHOWING MORE ECONOMIC SLOWDOWN OR LOWER INFLATION RATES FOR THAT TO HAPPEN ONE VERY POPULAR BELLWETHER FOR INTEREST RATES SUGGESTS THAT RATES ARE PROBABLY GOING HIGHER NAMELY THE DOW JONES UTILITY AVERAGE THIS AVERAGE MEASURES THE STOCKPRICE CHANGES OF 11 ELECTRIC UTILITIES AND FOUR NATURALGAS COMPANIES MANY ANALYSTS BELIEVE IT ANTICIPATES MAJOR CHANGES IN INTERESTRATE CYCLES THAT'S BECAUSE UTILITIES TEND TO PAY HIGH DIVIDENDS AND OFTEN ATTRACT THE KIND OF CONSERVATIVE YIELDORIENTED INVESTORS WHO ALSO BUY BONDS WHEN INVESTORS EXPECT BOND YIELDS TO RISE THEY PUSH DOWN THE PRICES OF UTILITY STOCKS BETTING THAT A RISE IN BOND YIELDS WILL MAKE THESE STOCKS LESS VALUABLE FROM MIDFEBRUARY THROUGH MIDSEPTEMBER THE UTILITY AVERAGE ROSE TO 25646 FROM 23216 AS LONGTERM YIELDS PLUNGED BUT SINCE OCT 15 WHEN THE 30YEAR TREASURY BOND YIELD BOTTOMED OUT AT 579 THE UTILITY AVERAGE HAS DROPPED MORE THAN 22 POINTS PRICES OF ALL TREASURY DEBT PLUNGED THE 10YEAR NOTE DROPPED NEARLY 7/8 POINT OR NEARLY 875 FOR A BOND WITH A 1000 FACE VALUE TO 99 11/32 ITS YIELD ROSE TO 582 FROM 571 TRADERS CITED A RUSH OF DEALER AND SPECULATIVE SELLING AND A SPATE OF RECENT REPORTS SUGGESTING THAT THE ECONOMY IS PICKING UP STEAM THIS MARKET'S GOT MORE PROBLEMS THAN A CENTIPEDE WITH FALLEN ARCHES SAID ALAN LEVENSON A MONEYMARKET ECONOMIST AT UBS SECURITIES INC WHILE SOME BELIEVED THE DECLINES WERE OVERDONE DEALERS WERE UNWILLING TO STAND IN THE WAY THEY CITED NERVOUSNESS ABOUT THE MARKET'S ABILITY TO CONTEND WITH AN IMPENDING FLOOD OF ISSUANCE ESPECIALLY AFTER A RECENT STREAM OF DATA SHOWING STRONGER ECONOMIC GROWTH THE TREASURY DEPARTMENT WILL BE SELLING 17 BILLION IN TWOYEAR NOTES THIS MORNING AND 11 BILLION IN FIVEYEAR NOTES TOMORROW AFTERNOON IN WHENISSUED TRADING LATE FRIDAY THE TWOYEAR NOTE YIELDED 425 AND THE FIVEYEAR NOTE YIELDED 519 THE MARKET WILL BE CLOSED THURSDAY FOR THANKSGIVING AND TRADING IS LIKELY TO END EARLY WEDNESDAY AND FRIDAY THE PRICE OF A LANDMARK 250 MILLION ISSUE OF 30YEAR BONDS FROM MEXICAN GOVERNMENT OIL COMPANY PETROLEOS MEXICANOS KNOWN AS PEMEX ROSE ABOUT 375 FOR EACH BOND WITH A 1000 FACE VALUE IN THE FIRST DAY OF TRADING THE BONDS WHICH ARE THE FIRST 30YEAR MEXICAN CORPORATE ISSUE IN RECENT MEMORY WERE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO WITH AN 8625 COUPON AT A SPREAD OF 22 PERCENTAGE POINTS OVER THE YIELD OF THE 30YEAR US TREASURY BOND THE DEAL IS REMARKABLE BECAUSE MEXICO'S DOLLARDENOMINATED DEBT INCLUDING THE PEMEX BOND ISN'T RATED INVESTMENTGRADE BY EITHER MOODY'S INVESTORS SERVICE INC OR STANDARD & POOR'S CORP EVEN SO INVESTORS SEEM WILLING TO TAKE A LONGTERM FINANCIAL RISK IN MEXICO NOW IN EXPECTATION THAT THE FREETRADE TREATY WILL HELP LIFT THE COUNTRY'S CREDIT RATING ASIDE FROM SOCALLED BRADY BONDS WHICH ARE BANK DEBTS OF THE MEXICAN GOVERNMENT REPACKAGED INTO BONDS THERE ARE NO OTHER LONGTERM MEXICAN BOND ISSUES TRADING TODAY THE LONGEST MATURITY IN MEXICAN TREASURY DEBT IS TWO YEARS CRAIG TORRES IN MEXICO CITY CONTRIBUTED TO THIS ARTICLE 9311220007 931122 WHO'S NEWS BAXTER INTERNATIONAL INC BAXTER INTERNATIONAL INC DEERFIELD ILL HENRY R AUTRY 45 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER HE WILL OVERSEE A RANGE OF STAFF FUNCTIONS INCLUDING QUALITY REGULATORY AND GOVERNMENTAL AFFAIRS HE PREVIOUSLY WAS PRESIDENT OF BAXTER'S IV THERAPY UNIT BEFORE THAT HE WAS PRESIDENT OF THE HOSPITAL DISTRIBUTION SERVICES UNIT 9311220006 931122 MARKETING & MEDIA WALT DISNEY WORLD TO BUILD COMPLEX FOR AMATEUR SPORTS EXPANSION PLAN INCLUDES 5000SEAT STADIUM TO ATTRACT NEW FANS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL WALT DISNEY CO SENDING ANOTHER SIGNAL IT IS SERIOUS ABOUT EXPANDING ITS INTERESTS IN THE SPORTS WORLD SAID IT PLANS TO BUILD AN INTERNATIONAL AMATEUR SPORTS CENTER THAT WILL COVER NEARLY 100 ACRES AT WALT DISNEY WORLD NEAR ORLANDO FLA DISNEY IS EXPECTED TO SPEND TENS OF MILLIONS OF DOLLARS ON THE COMPLEX WHICH IT SAID IT WILL USE TO SHOWCASE VARIOUS SPORTING EVENTS THAT IT BELIEVES WILL ATTRACT THOUSANDS OF SPORTS FANS THE COMPLEX WHICH WILL INCLUDE A 5000SEAT MAINEVENT STADIUM A FIELD HOUSE MULTISPORT PRACTICE FIELDS AND TRAINING FACILITIES AMONG OTHER THINGS MAY OPEN AS EARLY AS 1996 THE COMPANY ALSO ANNOUNCED DETAILS OF OTHER EXPANSION PROJECTS AT WALT DISNEY WORLD INCLUDING PLANS FOR AT LEAST FIVE OTHER RESORT HOTEL PROJECTS IN ADDITION TO THREE CURRENTLY UNDER CONSTRUCTION JUDSON GREEN PRESIDENT OF WALT DISNEY ATTRACTIONS SAID THE COMPLEX WILL STRENGTHEN WALT DISNEY WORLD'S REPUTATION AS A SPORTS DESTINATION WE ALREADY HAVE THE WEATHER LAND AND HOTEL ROOMS TO HOST AND STAGE WORLDCLASS EVENTS HE SAID WHAT WE'RE MISSING TO EXPAND THE KINDS OF THINGS WE'RE ALREADY DOING ARE A FEW KEY CORE SPORTS FACILITIES WALT DISNEY WORLD IS ALREADY THE SITE OF SUCH SPORTING EVENTS AS THE WALT DISNEY WORLD/OLDSMOBILE GOLF CLASSIC DISNEY CHAIRMAN MICHAEL EISNER HAS SAID THAT THE COMPANY'S INTEREST IN SPORTS THOUGH SMALL RELATIVE TO ITS THEMEPARK BUSINESS FITS WITH DISNEY'S GENERAL FEELING THAT IT IS A LIVEATTRACTION COMPANY MORE INTERESTED IN ENTERTAINING PEOPLE OUTSIDE THE HOME THAN IN THE MUCHHYPED 500CHANNEL LIVING ROOMS OF THE FUTURE LAST WEEK DISNEY IN BURBANK CALIF OUTLINED PLANS TO BUILD A THIRD US THEME PARK DISNEY'S AMERICA IN VIRGINIA AT A COST PEOPLE CLOSE TO THE COMPANY PLACED AT MORE THAN 500 MILLION ITS NATIONAL HOCKEY LEAGUE FRANCHISE THE MIGHTY DUCKS BEGAN PLAYING A LITTLE MORE THAN A MONTH AGO IN ANAHEIM CALIF AND THE COMPANY IS PROPOSING A NATIONAL COLLEGIATE ATHLETIC ASSOCIATION FOOTBALL CHAMPIONSHIP GAME AT ANAHEIM STADIUM DUBBED THE PIGSKIN CLASSIC ALTHOUGH IT IS EXPECTED TO BE USED PRIMARILY FOR AMATEUR ATHLETICS THE FLORIDA COMPLEX COULD BE THE SITE OF PRESEASON TRAINING CAMPS IN SOME PROFESSIONAL SPORTS DISNEY SAID THE COMPANY SAID THE CENTER WILL HAVE PROFESSIONALCALIBRE TRAINING AND COMPETITION SITES FOR AT LEAST 25 INDIVIDUAL AND TEAM SPORTS DISNEY SAID THE COMPLEX WILL HELP THE CENTRAL FLORIDA AREA IN ITS EFFORTS TO ATTRACT MAJOR LEAGUE TEAMS AND PROFESSIONAL SPORTS FACILITIES DISNEY ALSO ANNOUNCED THE DETAILS OF OTHER EXPANSION PLANS AT WALT DISNEY WORLD INCLUDING THE CONSTRUCTION OF THE EIGHT RESORTHOTEL PROJECTS WITH MORE THAN 10300 ROOMS AND THE ADDITION OF PLANET HOLLYWOOD A 400SEAT RESTAURANT PATTERNED AFTER THE ONE IN NEW YORK 9311220005 931122 FED OFFICIALS OPTED FOR STEADY RATES AT SEPT 21 SESSION BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE POLICY MAKERS SEEING NO CHANGE IN THE OUTLOOK FOR MODERATE AND SUSTAINED EXPANSION IN ECONOMIC ACTIVITY UNANIMOUSLY DECIDED TO HOLD INTEREST RATES STEADY AT THEIR SEPT 21 MEETING THE FED DISCLOSED NEITHER THE PACE OF THE ECONOMIC EXPANSION NOR THE UNCERTAIN PROGRESS TOWARD PRICE STABILITY REFLECTED A WHOLLY SATISFACTORY ECONOMIC PERFORMANCE THE OFFICIALS CONCLUDED BUT AT THIS POINT THE PRESENT POSTURE OF MONETARY POLICY CONTINUED TO OFFER THE BEST PROMISE OF PROMOTING SUSTAINED ECONOMIC GROWTH IN THE CONTEXT OF SUBDUED IF NOT DECLINING INFLATION THE FED'S POLICY COMMITTEE MET AGAIN TUESDAY TO SET INTERESTRATE POLICY FOR THE NEXT SEVERAL WEEKS THE FED HASN'T MADE ANY MOVE TO ALTER RATES SINCE THE MEETING AT THE SEPTEMBER MEETING THE CENTRAL BANK UNANIMOUSLY DECIDED NOT TO LEAN TOWARD EITHER HIGHER OR LOWER INTEREST RATES IN THE FOLLOWING WEEKS MAINTAINING A NEUTRAL STANCE ADOPTED IN AUGUST ALTHOUGH THE SUMMARY SHOWS THAT SOME FED POLICY MAKERS SAID THEY WEREN'T SURE WHETHER THE NEXT MOVE WOULD BE TO RAISE OR LOWER INTEREST RATES MOST GOVERNMENT AND PRIVATE ANALYSTS EXPECT THAT SOMETIME IN THE NEXT SIX MONTHS OR SO THE FED WILL BEGIN TO RAISE THE SHORTTERM INTEREST RATES IT CONTROLS THE FED DESCRIBED CURRENT POLICY AS QUITE ACCOMMODATIVE IN THE 18PAGE SUMMARY RELEASED FRIDAY AFTER THE CUSTOMARY SIXWEEK LAG WHILE SOME OFFICIALS STRESSED THE NEED TO REMAIN ESPECIALLY ALERT TO POTENTIAL INFLATIONARY DEVELOPMENTS OTHERS CAUTIONED THAT THE ECONOMIC EXPANSION MIGHT REMAIN QUITE SLUGGISH FOR A PERIOD THE FED ALSO DISCLOSED THAT ITS TOP POLICY MAKERS HELD TWO TELEPHONE CONFERENCE CALLS BETWEEN SEPT 23 AND NOV 16 TO REVIEW ECONOMIC AND FINANCIAL DEVELOPMENTS AFFECTING MEXICO AND TO DISCUSS VARIOUS CONTINGENCIES THAT MIGHT INVOLVE THE FEDERAL RESERVE THAT APPARENTLY REFERS TO THE POSSIBILITY THAT THE US MIGHT HAVE TO INTERVENE IN SUPPORT OF THE MEXICAN PESO BECAUSE OF DOUBTS SURROUNDING CONGRESSIONAL APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT 9311220004 931122 BUSINESS BRIEF ZENECA GROUP PLC CONSTRUCTION UNIT TO BE SOLD TO LEVERAGED BUYOUT FIRM ZENECA INC SAID A UNIT AGREED TO SELL ITS SPECIALTYBUILDING PRODUCTS DIVISION FOR ABOUT 62 MILLION TO A COMPANY CURRENTLY BEING FORMED BY D GEORGE HARRIS & ASSOCIATES A NEW YORK LEVERAGED BUYOUT FIRM THE UNIT MIAMI FLABASED THORO SYSTEMS PRODUCTS WILL BE SOLD LATER THIS MONTH TO THORCHEM INTERNATIONAL INC A CONSTRUCTIONRELATED CHEMICALS CONCERN ZENECA CALLED THE MOVE PART OF ITS STRATEGY OF SHEDDING NONCORE BUSINESSES ZENECA INC A 24 BILLION US BIOSCIENCE COMPANY IS PART OF ZENECA GROUP PLC OF BRITAIN 9311220003 931122 FINANCING BUSINESS SMITH'S FOOD AND DRUG CENTERS INC SMITH'S FOOD AND DRUG CENTERS INC SALT LAKE CITY UTAH THE SUPERMARKET CHAIN FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 300 MILLION OF PASSTHROUGH CERTIFICATES THE SECURITIES WILL BE SOLD IN ONE OR MORE OFFERINGS OVER THE NEXT TWO YEARS WITH PROCEEDS USED TO FINANCE REAL ESTATE ACQUISITIONS 9311220002 931122 HEARD ON THE STREET RETAIL STOCKS ARE CALLED HOLIDAY BUYS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR INVESTORS WHO THINK A STRONG CHRISTMAS SELLING SEASON IS JUST AROUND THE CORNER A RAFT OF SMALLER RETAIL CHAINS SEEM POISED TO CATCH THE YULETIDE SPIRIT AMONG ANALYSTS WHO TRACK SPECIALTY RETAILERS NO ONE EXPECTS TO SEE SHOPPERS GO ON A BLOCKBUSTER BUYING SPREE BUT MANY MARKET PROS SAY RISING CONSUMER CONFIDENCE WILL TRANSLATE INTO ACCELERATING CONSUMER SPENDING IN THE WEEKS AHEAD SMALL SPECIALIZED RETAILERS OFFERING DISTINCT PRODUCTS AT BROADLY AFFORDABLE PRICES ARE POSITIONED TO BENEFIT THEY SAY THERE'S SOME PENTUP DEMAND AND THAT USUALLY LEADS TO MORE SPENDING AT CHRISTMAS SAYS HARRY KATICA A SENIOR RETAIL ANALYST WITH RAYMOND JAMES & ASSOCIATES IN ST PETERSBURG FLA GONE IS LAST YEAR'S POSTELECTION EUPHORIA REPLACED BY A MORE SUBDUED YET GROWING CONFIDENCE THAT THE ECONOMY IS GAINING MOMENTUM DEMAND IS PICKING UP PRODUCTION IS PICKING UP THERE'S A CLEAR MESSAGE THAT THE ECONOMY IS DOING BETTER SAYS RICHARD RIPPE CHIEF ECONOMIST AT PRUDENTIAL SECURITIES INC ADDS CLAUDIA MOTT WHO TRACKS SMALLSTOCK TRENDS FOR PRUDENTIAL SECURITIES SMALLCAP GROWTH STOCKS ARE LIKELY TO OUTPERFORM THE BROADER SMALLSTOCK MARKET CAP IS STREET SHORTHAND FOR CAPITALIZATION THE VALUE OF A COMPANY IN THE STOCK MARKET MS MOTT EXPECTS TO SEE A LOT OF POSITIVE EARNING SURPRISES THIS QUARTER AND INTO NEXT YEAR IN THE CONSUMERSERVICE SECTOR CHIEFLY AMONG APPAREL AND SHOE MANUFACTURERS RESTAURANTS AND SPECIALTY COMPANIES THAT HAVE BEEN GENERATING BETTERTHANEXPECTED RESULTS ONE POTENTIALLY HOT CHRISTMAS STOCK ON PRUDENTIAL'S BUY SCREEN AND THAT OF A NUMBER OF OTHER ANALYSTS IS FORSCHNER GROUP A SHELTON CONN DISTRIBUTOR OF SWISS ARMY KNIVES AND SWISS ARMY WATCHES FORSCHNER'S PRODUCT LINE IS EXTREMELY WELLSUITED FOR CHRISTMAS GIFTS SAYS JIM HAMMEL AN ANALYST WITH ADVEST IN HARTFORD CONN RATING THE COMPANY A STRONG BUY HE SAYS IT ISN'T DEPENDENT ON ROBUST HOLIDAYSEASON SALES THOUGH ITS THIRD AND FOURTH QUARTERS ARE USUALLY ITS STRONGEST THEY'VE HAD REVENUE GROWTH OF 20 OR MORE FOR THE LAST EIGHT QUARTERS BASED LARGELY ON BETTERTHANEXPECTED SALES OF THE SWISS ARMY WATCH LINE MR HAMMEL SAYS FOLLOWING THE COMPANY'S BESTING OF EARNINGS ESTIMATES IN THE THIRD QUARTER THE ADVEST ANALYST REVISED HIS FOURTHQUARTER ESTIMATE TO 39 CENTS A SHARE FROM 37 CENTS UP FROM THE 31 CENTS REPORTED FOR THE YEAREARLIER PERIOD WITH THE COMPANY'S STOCK CURRENTLY TRADING AT AROUND 15 TIMES HIS EARNINGS FORECAST OF 105 THIS YEAR AND AT 135 TIMES HIS ESTIMATED 1994 EARNINGS OF 120 FORSCHNER IS UNDERVALUED HE SAYS THE STOCK CLOSED AT 15 3/4 UNCHANGED IN NASDAQ STOCK MARKET TRADING FRIDAY ANALYST DENNIS MORAN WITH AG EDWARDS IN ST LOUIS ALSO LIKES FORSCHNER THEY SELL VALUE PRODUCTS THAT DO WELL IN A VALUEORIENTED CHRISTMAS BUT HE ADDS A CAVEAT KEEP AN EYE ON THE SWISS FRANC ALTHOUGH FORSCHNER HEDGES AGAINST FOREIGNEXCHANGE RISK A PROTRACTED RISE IN THE SWISS FRANC AGAINST THE DOLLAR COULD EVENTUALLY PRESSURE PROFIT MARGINS HE SAYS AMONG OTHER PROMISING CHRISTMAS STOCK PICKS RAYMOND JAMES'S MR KATICA LIKES TWO FLORIDABASED NATIONAL RETAILERS CLAIRE'S STORES A PEMBROKE PINES FLA COSTUME JEWELRY AND WOMEN'S FASHIONACCESSORIES CHAIN WITH 1100 STORES NATIONWIDE HAS IMPROVED ITS EXECUTION AND BROADENED ITS CUSTOMER BASE HE SAYS THE COMPANY LISTED ON THE NEW YORK STOCK EXCHANGE IS LIKELY TO POST A 55 JUMP IN EARNINGS TO 110 A SHARE FOR THE FISCAL YEAR ENDING JAN 31 UP FROM 71 CENTS A YEAR EARLIER HE PREDICTS FOR THE NEXT FISCAL YEAR MR KATICA EXPECTS NET TO CLIMB TO 125 A SHARE GIVING THE STOCK A PRICE/EARNINGS RATIO OF AROUND 14 TIMES THAT ESTIMATE CLAIRE'S CLOSED FRIDAY AT 17 3/8 OFF 1/8 IN BIG BOARD TRADING SPORTS & RECREATION BASED IN TAMPA FLA IS A SPORTING MAN'S PARADISE HE ADDS THE COMPANY OFFERS A WIDER RANGE OF HARD GOODS GOLF CLUBS AND EQUIPMENT BASKETBALLS FOOTBALLS AND THE LIKE THAN MANY COMPETING CHAINS THEY'VE BEEN AGGRESSIVELY ROLLING OUT THEIR SUCCESSFUL STORE FORMAT IN THE EASTERN US AND ARE SET TO DOUBLE THEIR STORE BASE BY THE END OF NEXT YEAR FROM 1992 LEVELS HE ADDS FOR THE CURRENT YEAR HE EXPECTS THE COMPANY TO REPORT PERSHARE EARNINGS OF MORE THAN 90 CENTS WELL ABOVE THE 60 CENTS POSTED LAST YEAR NEXT YEAR HE ENVISIONS 135 A SHARE FOR A CURRENT P/E RATIO OF 26 TIMES THOSE RESULTS THE NASDAQ STOCK CLOSED FRIDAY AT 34 1/2 OFF 3/4 SOME MARKET WATCHERS ALSO SUGGEST KEEPING TABS ON TALBOTS'S INITIAL PUBLIC OFFERING THE 11MILLIONSHARE IPO OF THE HINGHAM MASS WOMEN'S APPAREL RETAILER WAS PRICED LATE THURSDAY AT 19 1/2 UP FROM AN ORIGINALLLY ESTIMATED RANGE OF 15 TO 17 THROUGH LEAD UNDERWRITER MERRILL LYNCH ON FRIDAY TALBOTS CLOSED AT 22 5/8 UP 3 1/8 ON THE BIG BOARD WHERE THE IPO TRADES UNDER THE SYMBOL TLB WE'RE RECOMMENDING THE DEAL ON VALUATION AND FUNDAMENTALS SAYS KATHY SMITH AN ANALYST WITH RENAISSANCE CAPITAL CORP IN GREENWICH CONN WEDNESDAY'S SHELVING OF A PROPOSED IPO BY FASHION DESIGNER DONNA KARAN WAS A COMPANYSPECIFIC EVENT IN THE EYES OF MS SMITH A COAUTHOR OF RENAISSANCE'S IPO INTELLIGENCE NEWSLETTER SHE THINKS THE SCUTTLED IPO DOESN'T REFLECT ANY OVERALL WEAKNESS IN THE MARKET FOR SPECIALTYRETAILING IPOS CHARLES RONSON WHO PUBLISHES THE IPO VALUE MONITOR NEWSLETTER IN NEW YORK SAYS TALBOTS IS A GOOD RETAILER AND A YUPPIEFRIENDLY COMPANY THAT COULD BENEFIT FROM AN UPTURN IN CONSUMER CONFIDENCE IT'S ALSO A COMPANY THAT IS KNOWN TO INSTITUTIONAL BUYERS MR RONSON IS LESS FAVORABLY INCLINED TOWARD LAST WEEK'S OFFERING BY ALREADYPUBLIC CHICO'S FAS A RAPIDLY GROWING WOMEN'S APPAREL RETAILER KNOWN FOR ITS CASUAL LINES AT THE MOMENT THE STOCK IS FULLY PRICED HE SAYS THE COMPANY WHICH LAST MONDAY OFFERED 105 MILLION SHARES AT 35 EACH REPORTED A 15 RISE IN SAMESTORE SALES FOR THE THIRD QUARTER ENDED OCT 3 COMPARED WITH THE YEAREARLIER QUARTER ITS EARNINGS OF 29 CENTS A SHARE FOR THE PERIOD EXCEEDED ANALYSTS' EXPECTATIONS OF 24 CENTS AND WERE WELL AHEAD OF THE YEAREARLIER 13 CENTS A SHARE THE STOCK TRADING UNDER THE NASDAQ SYMBOL CHCS CLOSED FRIDAY AT 35 OFF 1/4 IF YOU BELIEVE IN FOLLOWING THE PATH OF INSIDERS YOU MIGHT CONSIDER THAT THEY HAVE BEEN SNAPPING UP SHARES IN STRIDE RITE US SHOE SALEM SPORTSWEAR PACIFIC SUNWEAR BONTON STORES AND ALEXANDER'S RECENT SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW AND IF YOU'RE PLAYING THE EARNINGSMOMENTUM GAME KEEP AN EYE ON SEVERAL SMALLCAP COMPANIES WHOSE EARNINGS ESTIMATES ARE BEING NOTCHED UP INCLUDING CHILDREN'SCLOTHING RETAILER GYMBOREE FURNITURE AND LEATHERGOODS RETAILER BOMBAY CO FAMILY DEPARTMENTSTORE CHAIN KOHL'S AND MICROAGE A FRANCHISER OF COMPUTER STORES 9311220001 931122 A&P UNIT AFFECTED BY STRIKE MONTVALE NJ GREAT ATLANTIC & PACIFIC TEA CO SAID THAT 63 STORES IN ONTARIO HAVE BEEN CLOSED DUE TO A STRIKE THE FOOD RETAILER SAID THE STORES ARE OWNED BY ITS MIRACLE FOOD MART DIVISION 9311220090 931027 BYE BYE WOODROW BY ARTHUR SCHLESINGER JR THE EVENTS OF THE PAST WEEKS PROVE THE DEEP RESISTANCE OF THE AMERICAN CONGRESS AND PEOPLE TO SENDING AMERICAN TROOPS TO FIGHT IN PLACES LIKE HAITI SOMALIA BOSNIA WHERE MANY MIGHT BE KILLED AND WHERE NO DIRECT THREAT TO VITAL US INTERESTS IS INVOLVED THIS REACTION IS ENTIRELY UNDERSTANDABLE IT MAY WELL BE RIGHT BUT IT IS IMPORTANT TO RECOGNIZE ITS IMPLICATIONS IF THIS REACTION PREVAILS WOODROW WILSON'S VISION OF A PEACE SYSTEM BASED ON COLLECTIVE SECURITY WILL BE DEAD OR AT LEAST INDEFINITELY DEFERRED THIS WAS THE VISION REVIVED BY FRANKLIN ROOSEVELT REAFFIRMED BY ALL SUCCEEDING PRESIDENTS OF BOTH PARTIES RENEWED BY GEORGE BUSH IN HIS CALL FOR A NEW WORLD ORDER AND BY BILL CLINTON IN HIS ADDRESS TO THE UNITED NATIONS AND GENERALLY APPLAUDED BY THE AMERICAN PEOPLE BUT COLLECTIVE SECURITY MEANS A WORLD OF LAW IT MEANS THE PREVENTION AND PUNISHMENT OF AGGRESSION IT MEANS MILITARY ENFORCEMENT IT MEANS SENDING TROOPS INCLUDING AMERICAN TROOPS INTO COMBAT NOT ALWAYS IN SUPPORT OF US INTERESTS NARROWLY CONSTRUED BUT IN SUPPORT OF INTERNATIONAL ORDER THE COMMITMENT OF TROOPS HAS BEEN THE PERENNIAL OBSTACLE TO THE WILSONIAN DREAM IT IS A POLITICAL OBSTACLE HOW TO EXPLAIN TO THE AMERICAN PEOPLE WHY THEIR HUSBANDS FATHERS SONS SHOULD DIE IN SOMALIA BOSNIA HAITI WHEN THE LOCAL OUTCOME MAKES SO LITTLE DIFFERENCE TO THE US IT IS ALSO A CONSTITUTIONAL OBSTACLE HOW TO RECONCILE THE PROVISION IN THE CONSTITUTION GIVING CONGRESS EXCLUSIVE POWER TO DECLARE WAR WITH THE DISPATCH OF AMERICAN TROOPS AT THE BEHEST OF A COLLECTIVESECURITY ORGANIZATION WILSON'S FIGHT FOR THE LEAGUE OF NATIONS FOUNDERED ON THESE OBSTACLES ARTICLE X OF THE LEAGUE COVENANT IMPOSED ON MEMBER NATIONS THE OBLIGATION TO PRESERVE AGAINST EXTERNAL AGGRESSION THE TERRITORIAL INTEGRITY AND EXISTING POLITICAL INDEPENDENCE OF ALL MEMBERS OF THE LEAGUE DOES THIS MEAN THEODORE ROOSEVELT ASKED SARCASTICALLY THAT WILSON WOULD GO TO WAR EVERY TIME A JUGOSLAV WISHES TO SLAP A CZECHOSLAV IN THE FACE THE MOST IMPORTANT OF HENRY CABOT LODGE'S RESERVATIONS DENIED ANY ARTICLE X OBLIGATION IN THE ABSENCE OF DUE AND SPECIFIC AUTHORIZATION BY CONGRESS WILSON INSISTED THAT ARTICLE X DID NOT COMPEL A MEMBER TO GO TO WAR AGAINST ITS WILL AND THAT THERE WOULD BE CASEBYCASE CONSIDERATION THOUGH HE ADDED SITUATIONS MIGHT ARISE THAT WOULD FORCE CONGRESS TO DECLARE WAR ARTICLE X IN HIS VIEW IMPOSED A MORAL IF NOT A LEGAL OBLIGATION IN THE END WILSON REFUSED TO COMPROMISE AND CONGRESS REJECTED THE LEAGUE IF THE LEAGUE WERE REJECTED WILSON SAID I CAN PREDICT WITH ABSOLUTE CERTAINTY THAT WITHIN ANOTHER GENERATION THERE WILL BE ANOTHER WORLD WAR TWENTY YEARS LATER HIS PREDICTION WAS FULFILLED THE YOUNG WILSONIANS OF THE FIRST WORLD WAR WERE NOW IN COMMAND OF THE AMERICAN GOVERNMENT THEIR GREAT FEAR WAS THE POSTWAR RESURGENCE OF ISOLATIONISM ISOLATIONISM HAD BEEN THE AMERICAN NORM FOR A CENTURY AND A HALF INTERNATIONALISM WAS A TWOYEAR WILSONIAN ABERRATION AFTER REPUBLICAN GAINS IN THE 1942 ELECTION SECRETARY OF STATE CORDELL HULL GLOOMILY TOLD VICE PRESIDENT HENRY WALLACE THAT THE COUNTRY WAS GOING IN EXACTLY THE SAME STEPS IT FOLLOWED IN 1918 HULL FELT WALLACE NOTED THAT IF WE WENT INTO ISOLATIONISM THIS TIME THE WORLD WAS LOST FOREVER TO KEEP THE US FROM REVERTING TO ISOLATIONISM PRESIDENT ROOSEVELT ARRANGED FOR THE ESTABLISHMENT OF A PERMANENT INTERNATIONAL STRUCTURE WHILE THE WAR WAS STILL ON COULD THE NEW UNITED NATIONS SEND AMERICAN SOLDIERS INTO WAR THE US VETO IN THE SECURITY COUNCIL ENSURED THAT THIS COULD NOT BE DONE OVER A PRESIDENT'S OBJECTION BUT IF A PRESIDENT CONCLUDES THAT THE NATIONAL INTEREST CALLED FOR PARTICIPATION IN A COLLECTIVESECURITY ACTION MUST HE GO TO CONGRESS FOR SPECIFIC AUTHORIZATION ALLOUT INTERNATIONALISTS HOPED FOR AUTOMATIC COMMITMENTS TO THE USE OF FORCE CORDELL HULL ARGUED FOR DISCRETIONARY PRESIDENTIAL AUTHORITY COMBINED WITH CONGRESSIONAL CONSULTATION SEN ARTHUR VANDENBERG REVIVED LODGE'S DEMAND FOR FORMAL CONGRESSIONAL AUTHORIZATION IN CASES OUTSIDE THE WESTERN HEMISPHERE EVENTUALLY A COMPROMISE PROVIDED FOR THE NEGOTIATION OF SPECIAL AGREEMENTS WHEN THE SECURITY COUNCIL CALLED FOR COLLECTIVESECURITY ACTION MEANWHILE ROOSEVELT HAD TOLD CHURCHILL AND STALIN AT TEHRAN THAT HE ONLY ENVISAGED THE SENDING OF AMERICAN PLANES AND SHIPS TO EUROPE AND THAT ENGLAND AND THE SOVIET UNION WOULD HAVE TO HANDLE THE LAND ARMIES IN THE EVENT OF ANY FUTURE THREAT TO PEACE IN THE EVENT STALIN SOLVED THE PROBLEM OF RESURGENT ISOLATIONISM THE COLD WAR ARRESTED THE REVERSION FEARED BY ROOSEVELT AND HULL AND PRODUCED THE ILLUSION THAT AMERICAN ISOLATIONISM WAS DEAD AND BURIED BUT THE END OF THE COLD WAR NOW LEAVES THE US WITHOUT A DIRECT AND URGENT THREAT TO THE NATION'S SECURITY AND THEREFORE WITHOUT STRONG INTERNATIONALIST INCENTIVES SO THE NATION RELAPSES INTO ISOLATIONISM AND BLAMES THE UN AN UNDERFUNDED AND OVERBUREAUCRATIZED BODY FOR NOT ESTABLISHING INTERNATIONAL ORDER TODAY THE CRY RISES AGAINST US TROOP COMMITMENT TO PEACEKEEPING IN BOSNIA AND FOR US WITHDRAWAL FROM SOMALIA INDEED IN BOTH THESE CASES MILITARY INTERVENTION WOULD PROBABLY HAVE FAILED TO ACHIEVE LASTING RESULTS AND IN EACH CASE THE PROBLEM BELONGED INITIALLY TO OTHER CONTINENTS TO AFRICA AND TO EUROPE TODAY A HANDFUL OF HAITIAN THUGS DRIVE US SOLDIERS INTO IGNOMINIOUS RETREAT IN THIS CASE THE PROBLEM BELONGS INITIALLY TO THE WESTERN HEMISPHERE AND INTERVENTION CAN CHANGE THINGS THE US IT SEEMS TO ME HAS A SPECIAL RESPONSIBILITY TO WORK WITH OTHER AMERICAN STATES IN PROTECTING THE DEMOCRATIC PROCESS THESE ARE ALL TOUGH DECISIONS ON THE MERITS PRESIDENT CLINTON CAUGHT IN THE TRAP BETWEEN HIS BELIEF IN AMERICA'S INTERNATIONAL RESPONSIBILITY AND THE RISING TIDE OF NEOISOLATIONISM HESITATES AND VACILLATES SEN ROBERT DOLE CHANGES OVERNIGHT FROM A CHAMPION OF EXECUTIVE CONTROL OF FOREIGN POLICY INTO AN ADVOCATE OF CONGRESSIONAL VETOES DEMOCRATIC LEGISLATORS MAKE THE REVERSE SWITCH REP CHARLES RANGEL WANTS THE UN TO TAKE CARE OF HAITI BUT LET'S NOT SEND IN AMERICAN TROOPS OTHER COUNTRIES RESENT THE US LINE THAT OUR TROOPS WILL FIGHT ONLY UNDER AMERICAN COMMAND HARDLY A SUCCESS IN SOMALIA AND THAT WE WILL CONFINE OUR MILITARY INTERVENTION TO AIR STRIKES WHILE THEIR SOLDIERS SWEAT IT OUT ON THE GROUND OUR HASTY RETREATS TELL TERRORISTS EVERYWHERE THAT ALL THEY HAVE TO DO IS KILL A FEW AMERICANS AND OUR SOLDIERS WILL BE RUSHED HOME CAN THIS REVERSION TO ISOLATIONISM BE ARRESTED OR MUST WE ABANDON THE WILSONIAN DREAM FORGET THE HOPE OF AN INTERNATIONAL PEACE SYSTEM AND RETURN TO THE OLD SAUVEQUIPEUT WORLD FOR THE IDEA OF A NEW WORLD ORDER BECOMES MEANINGLESS IF THE MOST POWERFUL NATION ON THE PLANET IS NOT FULLY COMMITTED TO IT IT MAY SEEM HEARTLESS TO SAY BUT OURS IS NOT AN ARMY OF DRAFTEES IN UNIFORM AGAINST THEIR WILL IT IS A PROFESSIONAL ARMY MADE UP OF PATRIOTIC MEN AND WOMEN WHO VOLUNTEERED FOR THE JOB AND THE JOB ALAS MAY INCLUDE FIGHTING KILLING AND EVEN DYING CAN THE PRESIDENT PERSUADE THE NATION TO LET OUR ARMED FORCES DO THEIR JOB IN THE INTERESTS OF A NEW WORLD ORDER IF THE NATION CANNOT BE SO PERSUADED AND THERE ARE GOOD ARGUMENTS AGAINST SUCH A POLICY WE CANNOT EXPECT OTHER NATIONS TO ENSURE WORLD ORDER FOR US PERHAPS WE SHOULD PROMOTE THE PROPOSAL RECENTLY MADE BY THAT DISTINGUISHED INTERNATIONAL CIVIL SERVANT SIR BRIAN URQUHART FOR A UN VOLUNTEER ARMY A FOREIGN LEGION MADE UP OF PEOPLE MOVED BY IDEALISM OR BY A DESIRE FOR ADVENTURE THAT COULD SERVE THE SECURITY COUNCIL AS A RAPID DEPLOYMENT PEACEMAKING FORCE IN THE MEANTIME WE MUST SEIZE EVERY SMALL OPPORTUNITY TO STRENGTHEN INTERNATIONAL LAW AND INTERNATIONAL INSTITUTIONS THE WORLD OF LAW WILL NOT BE ATTAINED BY EXHORTATION LAW REQUIRES ENFORCEMENT LET US NOT KID OURSELVES THAT WE CAN HAVE A NEW WORLD ORDER WITHOUT PAYING FOR IT IN BLOOD AS WELL AS IN MONEY MAYBE THE COSTS OF ENFORCEMENT ARE TOO GREAT NATIONAL INTEREST NARROWLY CONSTRUED MAY WELL BE THE SAFER RULE BUT LET US RECOGNIZE THAT WE ARE SURRENDERING A NOBLE DREAM REMEMBER THOSE LINES OF TENNYSON THAT CHURCHILL CALLED THE MOST WONDERFUL OF MODERN PROPHECIES AND THAT HARRY TRUMAN CARRIED IN HIS WALLET THROUGHOUT HIS LIFE FOR I DIPT INTO THE FUTURE FAR AS HUMAN EYE COULD SEE SAW THE VISION OF THE WORLD AND ALL THE WONDER THAT WOULD BE FROM THE NATIONS' AIRY NAVIES GRAPPLING IN THE CENTRAL BLUE IN THE PARLIAMENT OF MAN THE FEDERATION OF THE WORLD MR SCHLESINGER IS ALBERT SCHWEITZER PROFESSOR OF THE HUMANITIES AT THE CITY UNIVERSITY OF NEW YORK AND A WINNER OF PULITZER PRIZES IN HISTORY AND BIOGRAPHY SEE RELATED LETTERS LETTERS TO THE EDITOR RESTORE THE ORIGINAL UN GAME PLAN WSJ NOV 12 1993 SEE RELATED LETTER LETTERS TO THE EDITOR BLACK DAYS FOR THE BLUE HELMETS WSJ NOV 22 1993 9310270027 9311120177 YY93 MM11 9311220077 931027 LEISURE & ARTS BOOKSHELF MRS MORNINGSIDE HEIGHTS'S LIFE WITH MR BY JAMES W TUTTLETON DIANA TRILLING HAD THE DISTINCTION OF HAVING BEEN MARRIED TO LIONEL TRILLING 19051975 ONE OF THE MOST IMPORTANT LITERARY CRITICS OF MID20TH CENTURY AMERICA SHE WAS THUS AT THE CENTER OF THAT REMARKABLE GROUP OF NEW YORK INTELLECTUALS SIDNEY HOOK DWIGHT MACDONALD MARY MCCARTHY EDMUND WILSON PHILIP RAHV WILLIAM PHILLIPS AND DELMORE SCHWARTZ AMONG OTHERS WHOSE PARTISAN REVIEW CRITICISM DOMINATED INTELLECTUAL LIFE BETWEEN THE 1930S AND THE 1960S LIONEL IT MUST LIKEWISE BE SAID HAD THE DISTINCTION OF HAVING BEEN MARRIED TO HER FOR DIANA THOUGH NOT AS WELL KNOWN AS LIONEL WAS NEVERTHELESS AN INFLUENTIAL LITERARY CRITIC IN HER OWN RIGHT WHOSE PROVOCATIVE REVIEWS IN THE NATION AND WHOSE CRITICISM IN FOR EXAMPLE THE BOOK WE MUST MARCH MY DARLINGS DISCLOSE AN ACUTE AND DISCRIMINATING CRITICAL INTELLIGENCE THE BEGINNING OF THE JOURNEY THE MARRIAGE OF DIANA AND LIONEL TRILLING HARCOURT BRACE 442 PAGES 2495 IS A REMARKABLE BLEND OF CULTURAL CRITICISM AND PRIVATE REMINISCENCE IT IS AN ACCOUNT OF HER INTELLECTUAL DEVELOPMENT A MEMOIR OF HER HUSBAND AND A PORTRAIT OF THEIR MARRIAGE ABOUT MARRIAGE MS TRILLING ACTUALLY HAS AFFECTION FOR AN INSTITUTION THAT SOME INTELLECTUAL WOMEN HAVE RECENTLY BEEN AT PAINS TO TRASH DIANA LOVED HER HUSBAND HIS MIND THEIR INTELLECTUAL FIREWORKS AND HIS BOOKS AMONG THEM MATTHEW ARNOLD THE LIBERAL IMAGINATION AND THE OPPOSING SELF SINCE IT WAS ASSUMED THAT SHE WOULD MANAGE THE HOUSEHOLD THEIRS WAS A TRADITIONAL MARRIAGE THOUGH NOT WITHOUT CONFLICT IT APPEARS TO HAVE BEEN SOLID DIANA'S INTELLECTUAL DEVELOPMENT WAS SLOW SHE DID NOT BEGIN TO WRITE UNTIL SHE WAS 36 AND SHE WAS 42 WHEN THEIR SON WAS BORN LIVING WITH LIONEL WAS A LIBERAL EDUCATION HE TAUGHT HER SHE REMARKS NOT ONLY WHAT TO READ HINK ABOUT WHAT I READ HE GAVE ME A LITERARY AND CRITICAL VOCABULARY AND PREPARED THE PATH TO WHAT EVENTUALLY BECAME MY CAREER SHE ON THE OTHER HAND HELPED HIM TO EDIT POLISH AND PERFECT HIS CRITICAL PROSE WITH REMARKABLE RESULTS TRILLING'S FINESSE WITH LANGUAGE THE ELEGANCE OF HIS CRITICAL FORMULATIONS THE MODERATION OF HIS STYLE MADE HIM A MODEL FOR MANY OF US WHO WERE THEN YOUNG THE ACCOUNT OF THEIR MARRIAGE IS COMMENDABLY DISCREET NO AFFAIRS ARE MENTIONED BUT SHE IS DRILY CATTY ABOUT THOSE WHO PAID EXCESSIVE ATTENTION TO LIONEL AND LITTLE TO HER ANALYZING MARY MCCARTHY'S BEHAVIOR TOWARD HER SHE WRITES IT WAS NOT WITH THE PURPOSEFUL RUDENESS OF HER GOOD FRIEND HANNAH ARENDT YEAR AFTER YEAR HANNAH MADE BELIEVE THAT I DID NOT EXIST EVEN WHEN WE WERE A FEW FEET APART STARING INTO EACH OTHER'S FACES BUT SHE IS STARKLY CANDID ABOUT LIONEL'S BOUTS WITH CLINICAL DEPRESSION HIS HEAVY DRINKING AND HIS OCCASIONAL ERUPTIONS OF ANGER AT HER AND SHE DISCUSSES AT UNDUE LENGTH HER OWN PHOBIC YOUTH HER PROBLEMS WITH SELFPRESENTATION AND THE FAILURES OF HER PSYCHOANALYSIS SHE IS BY HER OWN ADMISSION ARROGANT BUT TRUTHFUL AND RESENTMENT AGAINST THEIR FAMILIES FRIENDS AND ENEMIES IS THE PREVAILING SPIRIT OF THE WORK OLD SCORES ARE HANDSOMELY SETTLED HERE SHE BLISTERS LIONEL'S COLUMBIA COLLEAGUES FOR FIRING HIM IN 1936 FOR BEING A JEW A MARXIST AND A FREUDIAN HE WAS LATER REINSTATED AND SHE CONFIRMS WHAT WE HAVE ALWAYS KNOWN ABOUT THE POLITICAL IRRESPONSIBILITY OF THE PARTISAN REVIEW GROUP IN PREACHING THE OVERTHROW OF CAPITALIST SOCIETY BUT THEN THE CENTRAL EVENT IN THE LIVES OF THESE NEW YORK INTELLECTUALS WAS THEIR SEDUCTION BY SOVIET COMMUNISM FOLLOWED BY DISILLUSIONMENT WITH IT THE TRILLINGS WERE NEVER PARTY MEMBERS BUT IN 1932 DIANA DID WORK BRIEFLY FOR ONE OF THE COMMUNIST FRONTS AND DECISIVELY SWITCHED TO THE OTHER SIDE MS TRILLING IS SUPERB IN REMINDING US OF THE EXTENT TO WHICH STALINISM DOMINATED AMERICAN CULTURE IN THE YEARS BEFORE THE SECOND WORLD WAR AND SHE IS SCATHING ON THE NEW YORK INTELLECTUALS' BLINDNESS TO STALINIST ATROCITIES THEIR CAPACITY FOR SELFDELUSION THEIR IRRATIONALITY THEIR MALICE ENVY SMALLMINDEDNESS INDEED EVEN THEIR WORLD WAR II DRAFTDODGING FROM THE MID1930S ON MS TRILLING'S STRIDENT PUBLIC ANTICOMMUNISM LOST THE TRILLINGS MANY FRIENDS AND PRODUCED LIFELONG CONTENTIONS SHE REMARKS THAT ONCE AT A PARTISAN REVIEW PARTY I CAME UP BEHIND HIM JUST IN TIME TO HEAR ALFRED KAZIN DEMAND 'WHEN ARE YOU GOING TO DISSOCIATE YOURSELF FROM THAT WIFE OF YOURS' HE MEANT OF COURSE THAT LIONEL WAS TO DISSOCIATE HIMSELF FROM MY POLITICS PERHAPS MISTAKENLY I RESTRAINED LIONEL'S UPLIFTED ARM ONE LOVES THE ADVERBIAL PHRASE MS TRILLING CONCEDES THAT BEING MARRIED TO HER WAS PROBABLY NOT EASY FOR LIONEL BUT THE UNION APPEARS TO HAVE HAD A GREAT MANY SATISFACTIONS SHE IS TOO DISCREET TO SPECIFY AND ALTHOUGH IT HAS NOT BEEN EASY TO LIVE WITHOUT HIM SINCE HIS DEATH SHE REMARKS THAT IN WORK ESPECIALLY WORK AT WHICH ONE HAS SOME MEASURE OF SUCCESS A WOMAN CAN AT LEAST PRETEND TO FIND A SUBSTITUTE FOR THE SEXUAL POWER WHICH SHE MUST LOSE WITH THE YEARS MR TUTTLETON IS A PROFESSOR OF ENGLISH AT NEW YORK UNIVERSITY SEE RELATED LETTER LETTERS TO THE EDITOR BIGGEST FISH WASN'T RED IN 1930S CULTURAL POND WSJ NOV 22 1993 9310270061 YY93 MM11 9311190188 931119 DYNCORP ACQUISITION RESTON VA DYNCORP INC SAID IT BOUGHT TECHNOLOGY APPLICATIONS INC A VIRGINIABASED HIGHTECHNOLOGY SYSTEMS INTEGRATION TELECOMMUNICATIONS AND ENVIRONMENTAL SERVICES FIRM TERMS WERE NOT DISCLOSED DYNCORP SAID TECHNOLOGY APPLICATIONS WITH 400 EMPLOYEES HAD FISCAL 1993 REVENUE OF ABOUT 40 MILLION 9311190187 931119 SHERATON FIJI EXPANSION BOSTON ITT SHERATON CORP SAID IT OPENED A RESORT ON VOMO ISLAND SHERATON VOMO RESORT ITS SECOND PROPERTY IN THE FIJI ISLANDS ITT SHERATON SAID THE NEW RESORT CONSISTS OF 30 PRIVATE VILLAS AND A DELUXE VILLA IT BRINGS TO 45 THE NUMBER OF PROPERTIES IN ITS ASIAPACIFIC DIVISION THE COMPANY ADDED ITT SHERATON IS A UNIT OF ITT CORP 9311190186 931119 LEISURE & ARTS A TWOSPORT ATHLETE TO TOP THEM ALL BY FREDERICK C KLEIN LAKE ZURICH ILL WHO IS AMERICA'S BEST TWOSPORT ATHLETE OF RECENT YEARS DO NOT ANSWER TOO QUICKLY I SAY THAT BECAUSE THE NAMES THAT COME QUICKEST TO MOST MINDS ARE BO JACKSON AND DEION SANDERS AND WHILE EACH IS OR WAS AN EXCELLENT FOOTBALL PLAYER BOTH HAVE BEEN NO BETTER THAN MEDIOCRE AT THEIR SECOND SPORT BASEBALL THE OTHER TWO MEN TO TRY THE FOOTBALLBASEBALL DOUBLE OF LATE BRIAN JORDAN AND DJ DOZIER HAVE STARRED IN NEITHER SPORT AT THE PRO LEVEL CONNIE YOUNG WAS A NOTABLE SPEEDSKATER AND BICYCLIST A WHILE BACK FLORIDA STATE UNIVERSITY'S CHARLIE WARD IS A STANDOUT IN BOTH FOOTBALL AND BASKETBALL BUT IT'S UNLIKELY HE'LL BE ABLE TO CONTINUE THAT COMBINATION INTO ADULTHOOD THE PERSON I HAVE IN MIND FOR THE HONOR IS WALTER RAY WILLIAMS JR HE'S THE LEADING MONEY WINNER ON THE CURRENT PROFESSIONAL BOWLERS ASSOCIATION TOUR AND A MANYTIME WORLDCHAMPION HORSESHOE PITCHER TO BOOT HIS LAST TITLE IN THAT SPORT COMING TWO YEARS AGO IF WILLIAMS HAD TAKEN FASTPITCH SOFTBALL PITCHING SERIOUSLY AS A YOUTH HE MIGHT HAVE COMPLETED A TRIFECTA THAT WOULD HAVE MADE HIM THE GREATEST UNDERHAND ATHLETE OF AWWWLLL TIME ALAS HE DID NOT I PLAYED A LITTLE SLOWPITCH AS A KID BUT I THINK I HAD THE WRONG INSTINCTS GRINS THE TALL BEARDED 34YEAROLD I'D ASK THE BATTERS TO SHOW ME EXACTLY WHERE THEY'D LIKE THE BALL TO BE PITCHED AND I'D THROW IT RIGHT THERE THAT'S NOT THE IDEA OF THE GAME IS IT TO SAY THAT WILLIAMS HAS THE RIGHT IDEA AS A BOWLER WOULD BE TO PUT IT MILDLY HOWEVER A VICTORY IN THE PBA'S LAST 1993 EVENT A MIXEDDOUBLES TOURNAMENT BEGINNING DEC 3 IN RENO NEV WOULD MAKE HIM THE FIRST BOWLER TO EARN MORE THAN 300000 IN OFFICIAL PRIZE MONEY IN A SINGLE YEAR AND TIE THE ORGANIZATION'S RECORD FOR MOST TITLES IN A SEASON EIGHT HIS SCORING AVERAGE TO DATE OF 22325 MAKES HIM A SHOOIN FOR THAT ANNUAL MARK AND PLAYEROFTHEYEAR HONORS AS WELL ALL OF WHICH IS PRETTY GOOD FOR A SECOND SPORT ALL THINGS CONSIDERED I PREFER HORSESHOES TO BOWLING BUT A PERSON HAS TO MAKE A LIVING SAYS HE WILLIAMS LIKES HORSESHOE PITCHING BEST BECAUSE HE GREW UP WITH IT HIS UPBRINGING IN A FAMILY OF SEVEN CHILDREN INVOLVED MOVES AMONG SEVERAL CALIFORNIA CITIES ONE CONSTANT WAS THAT WHEREVER THE BROOD WENT WILLIAMS'S FATHER A SALESMAN PUT IN A HORSESHOE PIT QUIET AND MATHLOVING AND WITH LITTLE FONDNESS FOR TEAM SPORTS WALTER RAY GRAVITATED TO IT SOME KIDS SHOOT BASKETS THREE OR FOUR HOURS EVERY DAY AFTER SCHOOL WITH ME IT WAS THROWING HORSESHOES HE SAYS FAME CAME IN 1971 WHEN AT AGE 11 HE WON HIS FIRST WORLD JUNIOR TITLE THAT EARNED HIM A GUEST SPOT ON DICK CAVETT'S TELEVISION SHOW HE RECALLS THAT HE THREW A RINGER WHILE CAVETT RIPPED A BACKDROP CURTAIN WITH HIS TOSS TWO MORE WORLD JUNIOR CROWNS WOULD FOLLOW THEN FIVE WORLD SENIOR TITLES IN 1978 '80 81 '85 AND '91 AND SUCH FEATS AS THROWING 56 CONSECUTIVE RINGERS OVER THE PAST 17 YEARS HE'S FINISHED OUT OF THE TOP 10 IN THE SENIOR EVENT ONLY TWICE AND IF THE REST OF THE HORSESHOE WORLD INCLUDES ONLY A FEW CANADIANS NORWEGIANS AND JAPANESE SO WHAT FOR A LONG TIME JUST AMERICANS PLAYED IN THE BASEBALL WORLD SERIES AND NO ONE QUESTIONED THAT HE POINTS OUT WILLIAMS BOWLED A BIT AS A YOUNGSTER BUT DIDN'T TAKE THE SPORT SERIOUSLY UNTIL AGE 17 SELFTAUGHT HE WAS AVERAGING 200 WITHIN A YEAR AND ENTERING PROFESSIONAL TOURNAMENTS AROUND HIS HOME IN AUBURN CALIF HE DID SO WELL HE WAS ABLE TO PUT HIMSELF THROUGH CALIFORNIA POLYTECHNIC STATE AT POMONA WITH A DEGREE IN PHYSICS AFTER WHICH HE DECIDED TO GIVE THE PBA TOUR A TRY HE CRACKED THE TOP50 MONEY WINNERS' LIST IN 1983 HIS FIRST FULL YEAR OUT AND HAS NEVER LOOKED BACK IN 1986 HE WON THREE TOURNEYS AND 145550 AND WAS NAMED BOWLER OF THE YEAR BUT IT TOOK HIM SIX MORE YEARS TO EQUAL HIS '86 VICTORY TOTAL AND HE FINISHED SECOND SO MANY TIMES 12 IN THAT STRETCH THAT RUNNERUP BEGAN TO LOOK LIKE HIS MIDDLE NAME IT WAS FRUSTRATING BOWLING SO WELL SO OFTEN AND COMING UP JUST SHORT HE RECALLS I HAD TO KEEP TELLING MYSELF HOW CLOSE I WAS TO BEING REALLY GOOD AFTER THIS YEAR HE WON'T NEED ANY SUCH REMINDERS HIS TOTAL OF SEVEN TOURNEY WINS IS ONLY ONE SHORT OF MARK ROTH'S 1978 RECORD AND UNLESS HE ROLLS ONLY GUTTER OOPS CHANNEL BALLS IN RENO TWO WEEKS HENCE HE'LL BEAT ROTH'S '79 PBA HIGHAVERAGE MARK OF 221662 THE STYLE THAT HAS BROUGHT WILLIAMS TO HIS CURRENT LOFTY STATUS EMPHASIZES GRACE OVER POWER SOMETHING THAT OWES MUCH TO HIS HORSESHOE TRAINING MORE IMPORTANT STILL HE BELIEVES HAS BEEN HIS ABILITY TO ALTER HIS SPEED AND DELIVERY TO SUIT THE MYRIAD LANE CONDITIONS THAT BOWLING TOURISTS MUST COPE WITH PROOF THAT HIS FELLOW PROS AGREE WITH THIS SELFASSESSMENT WAS THEIR RECENT ELECTION OF WILLIAMS AS THE MOST ADAPTABLE MEMBER OF THEIR TROUPE AS WELL AS THE BEST SPARE SHOOTER WILLIAMS SHARES WITH OTHER BOWLING PROS THE CONVICTION THAT THE SPORTSWATCHING PUBLIC RECREATIONAL BOWLERS INCLUDED DOESN'T APPRECIATE THE DIFFICULTIES THAT VARYING LANE CONDITIONS PRESENT THOSE PROBLEMS CAN SOMETIMES GO BEYOND THE PHYSICAL THE VARIETY OF WAYS LANES CAN CHANGE FROM WEEK TO WEEK IS SO GREAT THAT IT'S NOT UNCOMMON FOR BOWLERS TO GET PARANOIAC ABOUT IT TO START THINKING THAT SOMEBODY'S FIXING THINGS SO THEY'LL LOSE HE SAYS THE ABILITY TO GET THAT SORT OF STUFF OUT OF YOUR MIND AND GO ABOUT YOUR BUSINESS IS ONE OF THE BIG KEYS TO SUCCESS ON OUR TOUR ANOTHER KEY IS GETTING ACCUSTOMED TO LIFE ON A ROAD THAT'S BUMPIER THAN THOSE MOST OTHER PRO ATHLETES TRAVEL WITH HIS GIRLFRIEND PAIGE PENNINGTON WILLIAMS MOTORS AROUND DRAGGING A 40FOOT TRAILER OFTEN SETTING UP CAMP IN THE PARKING LOTS OF TOURNAMENT BOWLING CENTERS IT'S NOT BAD ONCE YOU GET USED TO IT HE SAYS NOW IF SOMEONE WOULD INVENT A MOVABLE HORSESHOE PIT 9311190185 931119 FOUNDATION HEALTH CONTRACT RANCHO CORDOVA CALIF FOUNDATION HEALTH CORP'S HEALTH MAINTENANCE ORGANIZATION FOUNDATION HEALTH WAS SELECTED TO PROVIDE POINTOFSERVICE COVERAGE FOR ABOUT 14000 VENTURA COUNTY CALIF EMPLOYEES AND THEIR DEPENDENTS EFFECTIVE DEC 19 TERMS WEREN'T DISCLOSED 9311190184 931119 MEMBERS SERVICE ACQUISITION WINTER PARK FLA MEMBERS SERVICE CORP SAID IT HAS ACQUIRED TOTTENHAM ASSOCIATES LTD A UK INTERNATIONAL GAMBLING CONSULTANCY TERMS WEREN'T DISCLOSED IN A NEWS RELEASE MEMBERS SERVICE SAID TOTTENHAM WILL FUNCTION AS A WHOLLY OWNED UNIT ANDREW TOTTENHAM RECENTLY APPOINTED VICE CHAIRMAN AND A DIRECTOR OF MEMBERS SERVICE A HOLDING COMPANY WITH TELECOMMUNICATIONS INTERESTS WILL CONTINUE AS MANAGING DIRECTOR OF TOTTENHAM 9311190183 931119 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED NOV 12 ACCOUNTED FOR 71 OR AN AVERAGE 199 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 62 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 352 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 429 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 596 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 375 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 29 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS SUSQUEHANNA NOMURA SECURITIES UBS SECURITIES AND COOPER NEFF EXECUTED ALL OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9311190182 931119 MANAGEMENT COMPANIES SEEK LOOPHOLES FOR EXECUTIVEPAY DEDUCTION BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL LOOPHOLE LOOPHOLE WHO'S FOUND THE LOOPHOLE MAJOR COMPANIES ARE SEEKING AND SOME HAVE DISCOVERED WAYS TO ELUDE THE NEW TAX LAW'S LIMIT ON CORPORATE DEDUCTIONS OF A TOP EXECUTIVE'S COMPENSATION OVER 1 MILLION THE LAW EFFECTIVE JAN 1 IMPOSES THE MILLIONDOLLAR DEDUCTION CAP UNLESS PAY IS BASED ON PERFORMANCE GOALS DRAFTED BY A COMMITTEE OF TRULY INDEPENDENT DIRECTORS AND CLEARED BY SHAREHOLDERS A HANDFUL OF BIG CORPORATIONS ALREADY HAVE TAKEN ACTION TO PROTECT THEIR DEDUCTIONS BEAR STEARNS COS HAS CHANGED THE BONUS FORMULA FOR ITS SEVENMAN EXECUTIVE COMMITTEE OTHER COMPANIES HAVE ALTERED THEIR BOARD COMPENSATION COMMITTEES OR STOCKOPTION PLANS BUT FEW IF ANY COMPANIES INTEND TO RESPOND TO THE LAW BY CUTTING BIG COMPENSATION PACKAGES WHICH RANKLES CRITICS OF EXECUTIVE PAY BY CHASING LOOPHOLES CORPORATIONS ARE TRYING TO GET A MAXIMUM AMOUNT OF MONEY FOR SENIOR OFFICERS WITH A MINIMUM AMOUNT OF EFFORT COMPLAINS ANNE HANSEN DEPUTY DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS THE WASHINGTON DC GROUP INCLUDES 85 PENSION FUNDS WITH COMBINED ASSETS OF MORE THAN 600 BILLION WHEN THE ACT WAS PASSED IN AUGUST MANY BUSINESSES EXPECTED TO SACRIFICE THE DEDUCTION RATHER THAN LET THE US GOVERNMENT DICTATE EXECUTIVEPAY PRACTICES MORE BROADLY BUT FORFEITING A CORPORATE TAX BREAK COULD ANGER INVESTORS AND POSSIBLY PROMPT LITIGATION OVER ALLEGED WASTE OF ASSETS PAY ADVISERS WARNED SHAREHOLDERS' PERCEPTIONS ARE IMPORTANT CONSIDERATIONS IN DECIDING WHETHER TO KEEP A TAX DEDUCTION SAYS LARRY ROBINSON DIRECTOR OF CORPORATE COMPENSATION AT XEROX CORP SO NOW AIDED BY THEIR WELLPAID COMPENSATION CONSULTANTS MANY COMPANIES ARE CONSIDERING TECHNIQUES TO PRESERVE THEIR CORPORATE TAX DEDUCTIONS BECAUSE IT REMAINS TO BE SEEN WHETHER THE TREASURY DEPARTMENT WILL APPROVE THESE TACTICS MOST FINAL DECISIONS AWAIT FEDERAL REGULATIONS EXPECTED BY THE YEAR END STRATEGIES BEING EXAMINED OR EMBRACED INCLUDE DEFERRING MORE PAY SOME COMPANIES INTEND TO ENCOURAGE EXECUTIVES TO POSTPONE LARGER PORTIONS OF THEIR ANNUAL BONUSES AND FOR THE FIRST TIME PART OF THEIR SALARIES UNTIL A YEAR WHEN THEIR COMPENSATION IS EXPECTED TO FALL BELOW 1 MILLION THERE'S NO LEGAL LIMIT ON HOW LONG PAY CAN BE DEFERRED I NOW SPEND 25 OF MY TIME TALKING ABOUT DEFERRAL AS A MEANS FOR CORPORATE CLIENTS TO AVOID THE MILLIONDOLLAR CAP SAYS MICHAEL DAVIS A VICE PRESIDENT IN CHICAGO OF CONSULTANTS TOWERS PERRIN ONE MAJOR SOUTHEASTERN BANK HAS EVEN CONSIDERED REQUIRING ITS HIGHEST OFFICIALS TO DEFER SOME PAY ANOTHER FINANCIALSERVICES COMPANY IS SETTING UP A PLAN GIVING EXECUTIVES MORE TIME TO POSTPONE CERTAIN COMPENSATIONUNTIL RETIREMENT RATHER THAN THE PRESENT FIVE YEARS CREATING A TWOTIER BONUS ARRANGEMENT MOST OF AN EXECUTIVE'S ANNUAL BONUS WOULD DEPEND ON MEETING OBJECTIVE PERFORMANCE TESTS APPROVED BY STOCKHOLDERS AND THUS WOULD BE EXEMPT FROM THE MILLIONDOLLAR CAP A SECOND SMALLER BONUS POOL WOULD BE DISCRETIONARY AND COUNT TOWARD THE CAP PFIZER INC A BIG DRUG MAKER IS EXPLORING THIS IDEA ONE PFIZER OFFICIAL SAYS A BIFURCATED BONUS ALSO IS UNDER ACTIVE CONSIDERATION AT XEROX MR ROBINSON SAYS A BONUS ACCOUNTED FOR 775000 OF THE 148 MILLION CASH COMPENSATION RECEIVED BY PAUL ALLAIRE XEROX'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN 1992 AT PRESENT ABOUT 30 OF A SENIOR OFFICER'S BONUS REFLECTS HIS OR HER ACHIEVEMENT OF INDIVIDUAL GOALS WHERE DISCRETIONARY JUDGMENT IS APPLIED MR ROBINSON EXPLAINS WE ARE A LITTLE CONCERNED ABOUT COMPLETELY DROPPING DIRECTORS' USE OF JUDGMENT WHEN THEY AWARD BONUSES TO TOP EXECUTIVES HE ADDS REVAMPING A BOARD'S COMPENSATION COMMITTEE IN REQUIRING APPROVAL OF PERFORMANCE GOALS BY AN OUTSIDERRUN PAY PANEL THE ACT'S CONGRESSIONAL CONFERENCE REPORT STRICTLY DEFINES AN OUTSIDE BOARD MEMBER AS SOMEONE WHO IS NOT A PRESENT OR FORMER EMPLOYEE AND IS NOT BEING PAID FOR ANY PERSONAL SERVICES OTHER THAN AS A DIRECTOR A CURRENT OR FORMER OFFICER SERVES ON THE COMPENSATION COMMITTEE AT ABOUT 22 OF CORPORATIONS A RECENT SECURITIES AND EXCHANGE COMMISSION ANALYSIS CONCLUDES AT A FEW COMPANIES THE CONFERENCE REPORT ALREADY HAS LED DIRECTORS WHO WERE RETIRED CEOS OUTSIDE LAWYERS OR OTHER CONSULTANTS TO RESIGN FROM THE BOARD'S PAY PANEL IN LATE SEPTEMBER VERNON JORDAN QUIT THE COMPENSATION COMMITTEE OF DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL MR JORDAN IS A SENIOR PARTNER OF AKIN GUMP STRAUSS HAUER & FELD A WASHINGTON LAW FIRM THAT AT TIMES ADVISES DOW JONES A COMPANY SPOKESMAN SAYS MICROSOFT CORP TOOK A SLIGHTLY DIFFERENT TACK THE COMPUTER SOFTWARE COMPANY FORMED A SPECIAL COMPENSATION COMMITTEE THAT EXCLUDES JON A SHIRLEY ITS RETIRED PRESIDENT AND CHIEF OPERATING OFFICER BUT HE REMAINS ON THE REGULAR COMPENSATION COMMITTEE BECAUSE HE HAS BEEN IN THE INDUSTRY AND WITH THE COMPANY A LONG TIME EXPLAINS BUCK FERGUSON MICROSOFT'S DIRECTOR OF INVESTOR RELATIONS ALTERING STOCKOPTION PLANS STOCK OPTIONS ESCAPE THE NEW TAXDEDUCTION CAP IF AMONG OTHER THINGS THE MAXIMUM NUMBER OF OPTIONS THAT THE INDIVIDUAL EXECUTIVE MAY RECEIVE DURING A SPECIFIED PERIOD IS PREDETERMINED THE CONGRESSIONAL CONFERENCE REPORT SAYS SUCH PERSONAL RESTRICTIONS HAVE BEEN RARE UNTIL NOW SINCE LATE OCTOBER MICROSOFT QUAKER OATS CO SEAGATE TECHNOLOGY INC AND DELTA AIR LINES HAVE WON SHAREHOLDER SUPPORT FOR INDIVIDUAL OPTION LIMITS AT QUAKER OATS'S ANNUAL MEETING LAST WEEK FOR INSTANCE INVESTORS OVERWHELMINGLY AGREED THAT NO EMPLOYEE WILL RECEIVE OPTIONS ON MORE THAN 500000 SHARES OF STOCK A YEAR MOST CONCERNS KEEN ABOUT KEEPING THE EXECUTIVEPAY TAX DEDUCTION WILL GO FOR STOCKHOLDER APPROVAL ON THIS SUBJECT PREDICTS PEARL MEYER A COMPENSATION CONSULTANT IN NEW YORK EVEN IF MANY COMPANIES DON'T FIND LOOPHOLES SOME PEOPLE WILL PROFIT FROM THE SEARCH SAYS ERIC SCOONES A PRINCIPAL OF PAY CONSULTANTS WILLIAM M MERCER INC HE NOTES THE PROFESSIONAL FEES GENERATED BY THIS PIECE OF LEGISLATION WILL FAR OUTWEIGH THE TAX REVENUE IT GENERATES 9311190181 931119 DATA I/O TO CUT WORK FORCE REDMOND WASH DATA I/O CORP SAID IT PLANS TO CUT 15 TO 20 OF ITS 530PERSON WORLDWIDE WORK FORCE WITHIN THE NEXT FOUR MONTHS AND IS CONSIDERING FURTHER CUTS THE ELECTRONICS COMPANY SAID THE ONETIME COST OF ITS RESTRUCTURING WILL HAVE A SIGNIFICANT ADVERSE IMPACT ON ITS FOURTHQUARTER RESULTS IT DECLINED TO ELABORATE EARLIER THIS MONTH DATA I/O REPORTED A THIRDQUARTER LOSS OF 13 MILLION OR 18 CENTS A SHARE ON SALES OF 149 MILLION 9311190180 931119 WAGE SETTLEMENTS IN CANADA OTTAWA MAJOR CANADIAN WAGE SETTLEMENTS REACHED IN SEPTEMBER PROVIDED INCREASES AVERAGING 02 ANNUALLY THE FEDERAL LABOR DEPARTMENT SAID THE FIGURE WAS ONE OF THE SMALLEST RECORDED SINCE 1978 WHEN THE LABOR DEPARTMENT BEGAN COLLECTING THE DATA IT WAS HELD DOWN BY WAGE FREEZES FOR 274265 QUEBEC GOVERNMENT EMPLOYEES SETTLEMENTS IN AUGUST CALLED FOR AN AVERAGE ANNUAL INCREASE OF 14 JULY SETTLEMENTS PROVIDED FOR AN AVERAGE 22 INCREASE 9311190179 931119 THAI TOUR FIRMS POSITION THEMSELVES TO TAP BURGEONING INDOCHINA MARKETS BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL AFTER ENDURING A PAINFUL SLUMP IN TOURISM THAI TOUR COMPANIES ARE TRYING TO BROADEN THEIR RANGE OF OFFERINGS SOME ARE POSITIONING THEMSELVES TO TAP THE BURGEONING MARKETS OF LAOS VIETNAM AND CAMBODIA THIS FORWARDLOOKING STRATEGY CONTRASTS WITH THE PREVAILING APPROACH OF THE LATE 1980S WHEN THAI TOUR OPERATORS SAT BACK AND CASHED IN ON DOUBLEDIGIT GROWTH IN FOREIGN ARRIVALS THEN CAME A SHARP DROP IN ARRIVALS WITH THE OUTBREAK OF THE PERSIAN GULF WAR IN 1991 FOLLOWED BY BLOODY ANTIMILITARY PROTESTS IN BANGKOK THE NEXT YEAR MAKING MATTERS WORSE WERE WORRIES ABOUT THE SPREAD OF AIDS IN THE REDLIGHT DISTRICT OF PATPONG AS WELL AS MONUMENTAL TRAFFIC JAMS AND OVERDEVELOPED BEACH RESORTS WE DEVELOPED A FAT CAT ATTITUDE IN THE LATE 1980S SAYS BERT VAN WALBEEK EXECUTIVE VICE PRESIDENT OF SIAM EXPRESS CO A MAJOR BANGKOK TOUR COMPANY THINGS WERE SO GOOD WE FORGOT TO WORRY ABOUT THE FUTURE FOREIGN ARRIVALS TO THAILAND ROSE A SCANT 1 TO 5140000 LAST YEAR AFTER FALLING 4 IN 1991 THIS YEAR LOOKS MORE PROMISING IN THE FIRST HALF 28 MILLION PEOPLE VISITED THAILAND UP 15 FROM A YEAR EARLIER AFTER THE SLUMP PEOPLE STARTED REALIZING TOURISM WOULDN'T JUST RETURN BECAUSE OF THE NAME THAILAND SAYS MR VAN WALBEEK THAILAND FACES TOUGH COMPETITION FROM INDONESIA MALAYSIA THE PHILIPPINES AND OTHER SOUTHEAST ASIAN DESTINATIONS THAT'S WHY DIETHELM TRAVEL THAILAND'S BIGGEST INBOUND TOUR OPERATOR THOUGHT WE MUST DO SOMETHING NEW SAYS LUZI MATZIG GENERAL MANAGER HE DECIDED TO EXPLORE INDOCHINA IN LATE 1991 DIETHELM OPENED AN OFFICE IN VIENTIANE THE CAPITAL OF LAOS EARLY THIS YEAR IT OPENED A SECOND OFFICE IN LUANG PRABANG THE COUNTRY'S CULTURAL CAPITAL THE COMPANY LAST YEAR HANDLED 2300 VISITORS MAINLY FROM EUROPE TO THE LAND OF A MILLION ELEPHANTS AND IT EXPECTS THE NUMBER TO APPROACH 3000 THIS YEAR IN LATE 1992 DIETHELM OPENED OFFICES IN PHNOM PENH AND SIEM RIEP IN CAMBODIA MR MATZIG PROJECTS THAT THOSE OFFICES WILL HAVE HANDLED ABOUT 3000 VISITORS BY YEAR END DEPENDING ON POLITICAL DEVELOPMENTS HE ALSO OPENED A REPRESENTATIVE OFFICE IN HO CHI MINH CITY AND PLANS A HANOI BRANCH WITHIN THE NEXT TWO YEARS DIETHELM ORGANIZES FIVEDAY TRIPS TO LAOS AND CAMBODIA FROM THAILAND COSTING ABOUT 1450 ADDING ANOTHER THREE DAYS FOR VIETNAM RAISES THE PRICE TO ABOUT 1900 THERE'S A TREMENDOUS BACKLOG OF INTEREST MR MATZIG SAYS THOUGH HONG KONG AND SINGAPORE ARE INTRODUCING DIRECT FLIGHTS TO THE MAIN CITIES OF INDOCHINA MR MATZIG ARGUES THAT THAILAND SHOULD BECOME THE MAJOR GATEWAY NOBODY ELSE HAS THE IDEAL GEOGRAPHICAL POSITION MR MATZIG ALSO BELIEVES BURMA WILL TURN INTO ONE OF THE BIGGEST TOURIST MARKETS IN ASIA WITHIN 20 YEARS ONCE IT BEGINS TO OPEN UP IT'S ALREADY BRINGING TOURISTS ACROSS THAILAND'S NORTHERN BORDER AT MAE SAI TO CHIAN TUNG CITY IN BURMA TOUR EAST ANOTHER COMPANY PROMOTING TOURS TO INDOCHINA SAYS IT EXPECTS 60 GROWTH IN BUSINESS IN 1994 THANKS MAINLY TO TOURS COMBINING THAILAND WITH INDOCHINA AS JAMES REED MANAGING DIRECTOR OF TOUR EAST PUTS IT IT'S LIKE ANY BUSINESS YOU CAN'T KEEP STILL LIKE AN AUTOMOBILE MAKER YOU NEED TO CHANGE YOUR PRODUCT LINE TOUR EAST HAS APPOINTED A GENERAL MANAGER FOR INDOCHINA AND SET UP OFFICES IN PHNOM PENH AND HO CHI MINH CITY THROUGH AN ARRANGEMENT WITH THE TOURISM ARM OF VIETNAM'S STATEOWNED OIL SERVICES CO TOUR EAST HAS EXCLUSIVE MARKETING RIGHTS IN WESTERN MARKETS FOR OIL SERVICES TOURS TO VIETNAM WE'RE BRINGING THEM THE BUSINESS AND GIVING THEM THE EXPERTISE TO HANDLE IT SAYS SARAH CAPES INDOCHINA MANAGER TOUR EAST IS TRAINING PEOPLE TO BE COME TOUR GUIDES AND RESERVATION OPERATORS AMONG OTHER JOBS IN VIETNAM ALONE ITS STAFF HAS SWELLED FROM A HANDFUL TO ABOUT 90 IN SLIGHTLY MORE THAN A YEAR THE COMPANY HANDLES ABOUT 500 TRAVELERS A MONTH FROM THE US SOUTH AFRICA SCANDINAVIA FRANCE AND BRITAIN THE POTENTIAL IS HUGE IN INDOCHINA SAYS MS CAPES OUR BUSINESS HAS INCREASED FIVEFOLD FROM 1992 TO 1993 AND WE EXPECT IT TO GROW ABOUT AS MUCH NEXT YEAR 9311190178 931119 INTERNATIONAL BRITISH JOBLESS RATE FALLS LONDON UNEMPLOYMENT IN BRITAIN FELL TO A SEASONALLY ADJUSTED 102 OF THE WORK FORCE IN OCTOBER FROM 103 IN SEPTEMBER ACCORDING TO PROVISIONAL ESTIMATES BY THE UK DEPARTMENT OF EMPLOYMENT THE NUMBER OF SEASONALLY ADJUSTED JOBLESS WAS ESTIMATED TO HAVE FALLEN BY 49000 DURING OCTOBER AFTER FALLING A REVISED 17800 IN SEPTEMBER 9311190177 931119 PACKARD BELL GETS FINANCING CHATSWORTH CALIF PACKARD BELL ELECTRONICS INC SAID IT RECEIVED 30 MILLION IN FINANCING FROM CONGRESS FINANCIAL CORP A UNIT OF CORESTATES FINANCIAL CORP BASED IN PHILADELPHIA PACKARD BELL A CLOSELY HELD PERSONALCOMPUTER MAKER SAID IT WILL USE THE MONEY TO FINANCE GROWTH IN THE US TERMS OF THE FINANCING WEREN'T DISCLOSED PACKARD BELL SAID IT EXPECTS 1993 REVENUE OF ABOUT 125 BILLION UP FROM 925 MILLION IN 1992 COMPUTER SHIPMENTS ARE EXPECTED TO REACH ONE MILLION UNITS COMPARED WITH 700000 LAST YEAR 9311190176 931119 USS/KOBE AND OHIO EDISON CO LORAIN OHIO USS/KOBE STEEL CO SAID IT REACHED A PARTNERSHIP ARRANGEMENT WITH OHIO EDISON CO TO PROCESS COAL THE COMPANY A JOINT VENTURE BETWEEN USXUS STEEL GROUP AND KOBE STEEL LTD SAID WORKING WITH OHIO EDISON ENABLES IT TO REPLACE COKE WITH PROCESSED COAL USS/KOBE SAID OHIO EDISON WILL PULVERIZE COAL FOR AN INITIAL PERIOD OF 10 YEARS BEGINNING IN MID1994 OHIO EDISON WILL INVEST ABOUT 8 MILLION IN NEW COALHANDLING EQUIPMENT AND IS REDESIGNING PART OF THE EXISTING COAL PULVERIZERS IN ITS OHIO EDGEWATER PLANT THE COMPANY SAID 9311190175 931119 INTERNATIONAL WORLD ECONOMY SEATTLE SUMMIT MAY SEND CLEAR MESSAGE TO EC TO GET ITS ECONOMIC ACT TOGETHER BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE THE ASIAN AND PACIFIC GOVERNMENTS GATHERED HERE FOR THEIR FIRSTEVER SUMMIT HAD A CLEAR MESSAGE FOR THE EUROPEAN COMMUNITY WHEN IT SOUGHT OBSERVER STATUS AT THEIR CONFERENCE TABLE BUZZ OFF THEY RESPONDED POLITELY BUT FIRMLY YOU DON'T GIVE US A ROLE IN EC AFFAIRS THUS WE COULDN'T POSSIBLY LET YOU HAVE ONE IN OURS THE 17MEMBER ASIAPACIFIC ECONOMIC COOPERATION GROUP TOLD THE SOMEWHAT AFFRONTED EUROPEANS YET SOME IN THE EC HOPE THE APEC SUMMIT WILL SEND A SECOND AND MUCH MORE IMPORTANT MESSAGE THEIR WAY THIS WEEK THAT EUROPE MUST TRY HARDER TO SOLVE ITS MANY PROBLEMS OR RISK BEING LEFT BEHIND IN THE GLOBAL ECONOMIC CONTEST AND ANY ESCAPE FROM EUROMALAISE THEY ADD MUST INCLUDE MORE ATTENTION TO ASIA IT'S NOT THAT ANYONE EXPECTS APEC TO EMERGE SUDDENLY AS A POWERFUL TRADING BLOC TO BE CLONED BY TIGHTLY KNIT ORGANIZATIONS LIKE THE EC RATHER THE GROUP IS A DIVERSE COLLECTION OF COUNTRIES RANGING FROM HUGE AND STILL SOMEWHAT SOCIALIST CHINA TO TINY AND FEUDAL BRUNEI WHOSE SEPARATE PASSIONS FOR FREER TRADE AND INVESTMENT DIFFER GREATLY AS AN ORGANIZATION RUN BY CONSENSUS APEC WILL FORM A STRAGGLING CONVOY STEAMING TOWARD THE COMMON DESTINATION OF LIBERALIZATION YET OFTEN HELD BACK BY THE SLOWEST SHIP BUT THE SEATTLE SUMMIT IS A DIPLOMATIC FIRST OF SYMBOLIC IMPORTANCE IT'S THE INITIAL GATHERING OF LEADERS FROM THE WORLD'S MOST DYNAMIC ECONOMIES ASSEMBLED TO SPUR EVEN FASTER GROWTH BY INCREASED COOPERATION AROUND THE PACIFIC RIM IN PARTICULAR IT'S A SIGN OF ASIAN MEMBERS' GREAT WEALTH ACCOUNTING FOR 25 OF GLOBAL PRODUCTION COMPARED WITH ONLY 4 THREE DECADES AGO AND OF THEIR NEW AWARENESS OF RISING ECONOMIC POWER AND THIS WEEK APEC MINISTERS TOOK SEVERAL SMALL BUT PRACTICAL STEPS TO ACCELERATE THIS RAPID GROWTH THUS SOME EUROPEANS HOPE REPORTS FROM SEATTLE WILL MAKE THIS KNOWN ACROSS A CONTINENT TOO PREOCCUPIED WITH ITS OWN MISERIES THEY REALIZE THAT MORE FORM THAN SUBSTANCE MAY BE INVOLVED TOMORROW WHEN PRESIDENT CLINTON HOBNOBS ON A NEARBY ISLAND WITH PACIFIC RIM LEADERS BUT THEY HOPE THIS WILL SIGNAL TO THE EUROPEANS THAT SOMETHING SIGNIFICANT IS UNDER WAY AND CONCENTRATE THEIR MINDS ON THE NEED TO RESPOND THE CNN IMAGES WILL BE FAR AHEAD OF THE POLITICAL REALITY CONCEDES A SENIOR AND SOMEWHAT DISPIRITED EC OFFICIAL FROM BRUSSELS BUT I HOPE THE MEETING WILL BE TAKEN ON OUR SIDE OF THE ATLANTIC AS EVIDENCE THAT WE HAVE TO DO MORE TO GET OUR OWN ACT TOGETHER THE US HOPES SO TOO ESPECIALLY IN GLOBAL TRADE TALKS NOW STALLED PARTLY BY FRANCE I THINK IT WILL NOT BE LOST ON THE EUROPEAN LEADERS THAT THE COUNTRIES OF THE ASIA PACIFIC ARE WORKING TOGETHER TOWARD TRADE LIBERALIZATION SECRETARY OF STATE WARREN CHRISTOPHER NOTED EARLY THIS WEEK IF EUROPE FAILS TO MOVE NEGOTIATIONS FORWARD HE WARNED APEC MAY WELL TURN TO OTHER MEASURES TO ACHIEVE MORE OPEN TRADING MANY ASIANS ALSO BLAME EUROPE FOR STALLING ON THE GLOBAL TRADE TALKS AND WANT TO GET EVEN THE MESSAGE OF THIS MEETING IS TO SEND SHIVERS DOWN THE SPINES OF EUROPEANS SAYS A SINGAPORE DELEGATE EUROPE IS IN AN INSULAR AND DEFENSIVE MOOD UNWILLING TO LOOK MUCH BEYOND ITS OWN ECONOMIC CRISIS ITS MAIN CONCERNS INCLUDE COPING WITH JOBLESS RATES SOARING PAST 11 WITH FAILED EFFORTS TO CRAFT COMMON FOREIGN DEFENSE AND MONETARY POLICIES AND DISCREDITED POLITICIANS WHO HAVE FEW NEW IDEAS THE EC SOLUTION OBVIOUSLY IS NOT TO EMULATE SAY MALAYSIA BUT SOME EUROPEANS BELIEVE IT SHOULD TAKE CLOSER ACCOUNT OF WHY ASIA HAS BOOMED SO STEADILY FOR YEARS AND ASK IF THERE ARE LESSONS TO BE LEARNED WHAT HAS CHANGED IN THE ECONOMY OF THIS WORLD IS ASIA AS A SOURCE OF GROWTH AND THAT'S A FACT YOU CANNOT DENY SAYS THE EC OFFICIAL AN EXAMPLE MOST ASIAN BUSINESSES PROFIT FROM NOT HAVING TO PAY HIGH SOCIAL CHARGES COMMON IN EUROPE WHILE IT WOULD BE IMPOSSIBLE FOR EC NATIONS TO MAKE ANY RADICAL CHANGES MANY EUROPEANS THINK THEIR GOVERNMENTS MUST REVISE WELFARE SOMEWHAT TO CUT COSTS AND BECOME MORE COMPETITITIVE HOWEVER THAT INVOLVES ENORMOUS RISK FOR INCUMBENT POLITICIANS SO THEY MOSTLY NIBBLE AROUND THE EDGES OF THE ISSUE ONE EUROPEAN WORRIER IS ANDREAS VAN AGT THE EC AMBASSADOR TO THE US AND A FORMER DUTCH PRIME MINISTER APEC MAY WELL BUILD A BRIDGE ACROSS THE PACIFIC LINKING THE AMERICAS TO ASIA AS SOME FOUNDERS HOPE HE NOTES IF SO HE ASKS WOULD EUROPE BECOME ONE WAY OR ANOTHER ASSOCIATED WITH IT OR WILL IT BE LEFT OUT IN THE COLD 9311190174 931119 WHO'S NEWS UST NAMES GIERER TO TOP POSTS GREENWICH CONN UST INC A MAKER OF SMOKELESS TOBACCO PRODUCTS NAMED VINCENT A GIERER JR AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUCCEEDING LOUIS F BANTLE WHO WILL RETIRE DEC MR GIERER 46 YEARS OLD WILL REMAIN PRESIDENT A POSITION HE HAS HELD SINCE SEPTEMBER 1990 MR BANTLE 65 WILL BECOME CHAIRMAN EMERITUS SEPARATELY JOHN J BUCCHIGNANO 46 EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS ELECTED TO THE BOARD EFFECTIVE DEC 1 HIS ELECTION INCREASES THE BOARD'S SIZE TO 10 9311190173 931119 ECONOMY ASIAPACIFIC GROUP AT A CROSSROADS MAY DETERMINE HOW TO DEFINE REGION BY ROBERT S GREENBERGER AND LAURENCE ZUCKERMAN STAFF REPORTERS OF THE WALL STREET JOURNAL SEATTLE ALTHOUGH THE GOALS FOR THIS WEEK'S MEETING OF THE ASIAPACIFIC ECONOMIC COOPERATION GROUP ARE MODEST THE ORGANIZATION COULD SOON BEGIN SHAPING THE REGION'S IDENTITY IN THE POSTCOLD WAR WORLD THE LANGUID PACE OF CHANGE AT APEC IS ILLUSTRATED BY ONE OF THE HOT ISSUES BEING DEBATED BEHIND CLOSED DOORS AT THIS WEEK'S ANNUAL MINISTERIAL MEETING HERE OFFICIALS ARE DISCUSSING WHEN APEC SHOULD BEGIN TALKING ABOUT A TIMETABLE FOR MOVING TOWARD FREER TRADE AMONG THE GROUP'S 17 MEMBERS ONE SUGGESTION SETS 1996 AS A TARGET DATE FOR BEGINNING SUCH CONSIDERATIONS WHICH THEN COULD TAKE YEARS TO IMPLEMENT BUT EVEN THAT IS LIKELY TO BE TOO SOON FOR SOME MEMBERS SAYS A SENIOR ASIAN OFFICIAL IT'S A SAFE BET THAT APEC WHICH DECIDES ALL ISSUES BY CONSENSUS WON'T MAKE ANY DRAMATIC OR SURPRISE ANNOUNCEMENTS WHEN IT ENDS ITS TWODAY SESSION TODAY NEVERTHELESS SOME OFFICIALS BELIEVE THE GROUP IS AT A CROSSROADS IT MUST DECIDE WHETHER IT WANTS TO CHANGE FROM BEING AN ECONOMICS AND TRADE TALK CLUB INTO ONE OF THE ORGANIZATIONS THAT WILL HELP SET THE AGENDA FOR THE PROSPEROUS ASIAPACIFIC REGION THE GROUP CONSISTS OF THE US MEXICO CANADA AUSTRALIA NEW ZEALAND AND 12 EAST ASIAN STATES NOW WE HAVE TO START MAKING DECISIONS ABOUT HOW STRUCTURED AND HOW MUCH OF A REAL THING THIS IS GOING TO BE SAID HAN SUNGJOO SOUTH KOREA'S FOREIGN MINISTER WE'D LIKE TO SEE IT MOVE TOWARD BECOMING A REAL ENTITY SO WOULD PRESIDENT CLINTON WHO COMES HERE FOLLOWING HIS VICTORY IN THE HOUSE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT APEC LOOMS LARGE FOR MR CLINTON WHO BELIEVES THERE IS A SEAMLESS WEB BINDING DOMESTIC ECONOMICS AND FOREIGN POLICY IF THIS WEEK'S CONFERENCE IS SUCCESSFUL THE PRESIDENT SAID YESTERDAY AFTER ARRIVING IN SEATTLE WE CAN CREATE JOBS HERE AND JOBS ACROSS THE PACIFIC HE WILL USE THE MEETING AND AN INFORMAL SUMMIT WITH ASIAN HEADS OF STATE TOMORROW TO HIGHLIGHT THE ECONOMIC IMPORTANCE OF ASIA TO THE US INFORMING THE US PUBLIC ABOUT ASIA'S ECONOMIC CLOUT TRADE WITH THE REGION CREATES ABOUT 2 1/2 MILLION US JOBS MAKES IT EASIER FOR MR CLINTON TO WIN SUPPORT FOR MAINTAINING A SUFFICIENTLY LARGE MILITARY PRESENCE THERE THAT IN TURN WOULD EASE THE CONCERNS OF ASIANS WHO WORRY ABOUT US DISENGAGEMENT NO REGION IS MORE IMPORTANT TO THE UNITED STATES AND ITS FUTURE THAN IS ASIA SAYS SECRETARY OF STATE WARREN CHRISTOPHER THERE IS NO BRIGHT LINE DIVIDING FOREIGN POLICY FROM DOMESTIC ECONOMIC POLICY OUR STRENGTH AT HOME AND OUR ENGAGEMENT ABROAD ARE INTERLOCKING AND MUTUALLY REINFORCING THE ADMINISTRATION WOULD ALSO LIKE TO USE APEC AS LEVERAGE TO PUSH RELUCTANT EUROPEANS TOWARD CONCLUDING NEGOTIATIONS ON GLOBAL TRADE TALKS IN GENEVA BEFORE A DEC 15 DEADLINE SENIOR ADMINISTRATION OFFICIALS ARGUE THAT IF THE WORLD TRADE TALKS FAIL APEC COULD TAKE THE LEAD IN LIBERALIZING WORLD TRADE HONG KONG TRADE OFFICIAL CHAU TAKHAY LAST NIGHT SAID THAT APEC MINISTERS HAVE AGREED ON A VERY STRONG STATEMENT DEMANDING A SUCCESSFUL END TO THE TALKS REUTERS NEWS SERVICE REPORTED ASIANS ARE EAGER TO SEE THE US REMAIN ENGAGED IN THEIR REGION THROUGH ORGANIZATIONS LIKE APEC EVEN AS THEY COMPLAIN ABOUT US DOMINANCE IF THIS WILL LEAD TO DEEPER INVOLVEMENT OF THE US IN THE REGION THEN IT IS GOOD FOR STABILITY AND UNINTERRUPTED ECONOMIC GROWTH SAYS DR SARASIN VIRAPHOL DIRECTORGENERAL OF THE DEPARTMENT OF AMERICAN AND SOUTH PACIFIC AFFAIRS IN THAILAND'S FOREIGN MINISTRY DURING THE COLD WAR AMERICA PROVIDED THE MASSIVE MILITARY PRESENCE THAT PROTECTED ASIAN NATIONS FROM SOVIET ENCROACHMENT AT THE SAME TIME THIS FORCE KEPT A LID ON HISTORIC ENMITIES PROTECTING SMALLER ASIAN NATIONS FROM THEIR NEIGHBORS THE ENSUING STABILITY FUELED THE ASIAN ECONOMIC MIRACLE BUT THINGS COULD CHANGE NOW ACCORDING TO A REPORT ON RECOMMENDATIONS FOR APEC'S FUTURE BY A SOCALLED EMINENT PERSONS GROUP A COLLECTION OF BUSINESSMEN ACADEMICS AND FORMER GOVERNMENT OFFICIALS APPOINTED BY APEC TO PROVIDE ADVICE THERE ARE WIDESPREAD PERCEPTIONS IN EAST ASIA THAT THE UNITED STATES MIGHT SUBSTANTIALLY WITHDRAW FROM THAT CONTINENT IN ECONOMIC OR MILITARY TERMS OR BOTH THE GROUP SAID THIS CONCERN WHICH MR CLINTON WILL TRY TO DAMP HAS PROMPTED AN ARMS RACE IN ASIA CHINA HAS BOUGHT RUSSIAN AIRCRAFT TAIWAN HAS PURCHASED AMERICAN PLANES AND INDONESIA HAS ACQUIRED ONETHIRD OF FORMER EAST GERMANY'S NAVY TO THE US BEING PART OF APEC IS ALSO IMPORTANT BECAUSE THE MEETINGS PROVIDE A SETTING FOR IMPORTANT BILATERAL BUSINESS FOR EXAMPLE ACCORDING TO A SENIOR US OFFICIAL TODAY'S SCHEDULED MEETING WITH CHINESE PRESIDENT JIANG ZEMIN COULDN'T HAVE TAKEN PLACE WITHOUT THE COVER OF THE ASIAPACIFIC REGIONAL MEETING GIVEN THE STRAINED RELATIONS BETWEEN WASHINGTON AND BEIJING IT WOULD HAVE BEEN PREMATURE IN OUR VIEW TO HAVE EITHER PRESIDENT VISIT THE OTHERS' CAPITAL HE SAID THE USCHINA MEETING IS IMPORTANT TO OTHER ASIAN NATIONS BECAUSE BEIJING PLAYS A DOMINANT ROLE IN THEIR NEIGHBORHOOD AND THEY PREFER TO SEE AN AMERICA ENGAGED WITH CHINA RATHER THAN ISOLATING IT MOREOVER MANY ASIAN NATIONS ARE UNCOMFORTABLE WITH THE US FOREIGNPOLICY EMPHASIS ON HUMAN RIGHTS WHICH THEY PERCEIVE AS AN EFFORT TO IMPOSE WESTERN STANDARDS ON ASIAN CULTURES DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON CRITICIZED PRESIDENT BUSH FOR CODDLING CHINA'S RULERS AND LAST JUNE HE SAID CHINA'S TRADING STATUS WITH THE US WOULDN'T BE RENEWED NEXT YEAR IF THERE AREN'T HUMANRIGHTS IMPROVEMENTS BUT NOW THE ADMINISTRATION IS SEEKING A COMPREHENSIVE RELATIONSHIP THAT PERMITS RESOLUTION OF DIFFERENCES IN A BROAD STRATEGIC CONTEXT MR CHRISTOPHER SAID THE US RELINQUISHES ITS ONEYEAR CHAIRMANSHIP OF APEC AFTER THIS WEEK'S MEETING WASHINGTON PLACED AN EMPHASIS ON OPENING UP TRADE THAT WILL BE REPLACED BY AN EMPHASIS ON HUMANRESOURCE DEVELOPMENT AND PROMOTING SMALL AND MEDIUMSIZE BUSINESS WHEN INDONESIA SUCCEEDS THE US ACCORDING TO A US OFFICIAL THE US FAVORED A CARROTANDSTICK APPROACH TO TRADE WHICH ENVISIONED A KIND OF REGIONAL TRADE ORGANIZATION THAT WOULD HAVE HAD AUTHORITY TO SANCTION VIOLATORS AT THIS POINT HOWEVER THERE IS MORE SUPPORT FOR HAVING APEC EVOLVE INTO A MORE INFORMAL STRUCTURE UNDER WHICH REGIONAL TRADE WOULD BE FACILITATED BY SUCH STEPS AS ESTABLISHING COMMON CUSTOMS STANDARDS IN THE BROADER SENSE THOUGH TO HAVE A SUCCESSFUL MEETING HERE MR CLINTON MUST SHOW ASIANS STRENGTH COMMITMENT AND WILLINGNESS TO COOPERATE SAYS PAUL WOLFOWITZ WHO WAS THE DEFENSE DEPARTMENT'S UNDERSECRETARY FOR POLICY IN THE BUSH ADMINISTRATION ASIANS LIKE A STRONG AMERICA THEY DEPEND ON A STRONG AMERICA PROVIDED THEY THINK WE'RE NOT GOING TO INSIST ON OUR WAY EVERY TIME 9311190172 931119 GLEASON SELLS BELGIAN SUBSIDIARY ROCHESTER NY GLEASON CORP SAID IT SOLD ITS BELGIAN SUBSIDIARY GLEASON WORKS SA TO THENSON MANAGEMENT INC A COMPANY OWNED BY FORMER GLEASON CORP EMPLOYEES TERMS WEREN'T DISCLOSED THE COMPANY SAID THE BELGIAN COMPANY WOULD CONTINUE TO SERVE AS A CONTRACT MANUFACTURER TO GLEASON FOR SOME OF ITS PRODUCTS AND THAT GLEASON WOULD CONTINUE SELLING AND SERVICING PRODUCTS MANUFACTURED BY THE BELGIAN OPERATION GLEASON CORP MAKES GEAR PRODUCTION EQUIPMENT MACHINE TOOLS AND TOOLING AND WORKHOLDING EQUIPMENT 9311190171 931119 WHO'S NEWS KEMPER CORP GIVES BORIS ADDED DUTIES IN MANAGEMENT MOVE LONG GROVE ILL KEMPER CORP SAID IT MADE SEVERAL MANAGEMENT CHANGES AS PART OF ITS CONTINUING STRATEGY TO POSITION THE COMPANY FOR STRONGER CUSTOMER RELATIONSHIPS IMPROVED PRODUCTS AND SERVICES AND INCREASED PRODUCTIVITY THE FINANCIALSERVICES CONCERN SAID IT NAMED JAMES R BORIS THE 49YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OF ITS KEMPER SECURITIES INC UNIT TO THE ADDITIONAL POST OF EXECUTIVE VICE PRESIDENT SALES AND DISTRIBUTION OF THE PARENT COMPANY ROBERT T JACKSON 47 SENIOR VICE PRESIDENT OF KEMPER WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT INFORMATION AND CUSTOMER SERVICE JOHN B SCOTT 49 CHAIRMAN AND CHIEF EXECUTIVE OF THE KEMPER INVESTORS LIFE INSURANCE CO UNIT WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT LIFE AND ANNUITIES KEMPER ALSO SAID THAT STEPHEN G MCCONAHEY 49 SENIOR VICE PRESIDENT CORPORATE AND INTERNATIONAL DEVELOPMENT OF THE PARENT COMPANY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF KEMPER SECURITIES AS PRESIDENT HE SUCCEEDS MR BORIS SANDY A LINCOLN 48 CHIEF INVESTMENT OFFICER AND SENIOR EXECUTIVE VICE PRESIDENT OF KEMPER FINANCIAL SERVICES AND SENIOR VICE PRESIDENT OF KEMPER WAS NAMED TO THE ADDITIONAL POST OF CHIEF INVESTMENT OFFICER OF KEMPER JOHN E NEAL 43 EXECUTIVE VICE PRESIDENT REAL ESTATE INVESTMENTS WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT REAL ESTATE SHARON QUAY 59 CURRENTLY SENIOR VICE PRESIDENT HUMAN RESOURCES OF KEMPER SECURITIES WAS NAMED VICE PRESIDENT HUMAN RESOURCES OF THE PARENT COMPANY SUCCEEDING DAVID SERVONE WHO TOOK ANOTHER POST WITH THE COMPANY ARTHUR J MCGIVERN SENIOR EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF KEMPER SECURITIES WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT AND CORPORATE COUNSEL OF KEMPER THE APPOINTMENTS ARE EFFECTIVE JAN 1 9311190170 931119 ENTERPRISE SMALL FIRMS SAY IT'S TOUGH TO FILL SOME JOB OPENINGS BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL EVERYONE KNOWS THOUSANDS OF COMPANIES AREN'T HIRING BECAUSE THEY AREN'T GROWING AT THE SAME TIME A SURPRISING NUMBER OF SMALL BUSINESSES AREN'T GROWING BECAUSE THEY CAN'T HIRE THERESA ZERRENNER SAYS HER FAMILY'S 26 BRUCKNER BOULEVARD INC WHICH OWNS ACADEMY GLASS & MIRROR CO IN NEW YORK HAS UNSUCCESSFULLY TRIED FOR MORE THAN A MONTH TO HIRE TWO WORKERS TO MEET INCREASING DEMAND THE JOBS INVOLVE DRIVING TO HOMES STORES AND OFFICES TO INSTALL GLASS IF WE HAD MORE PEOPLE WE COULD PUT OUT MORE CREWS AND MAKE MORE MONEY SAYS MS ZERRENNER A PRINCIPAL AT THE THREEPERSON FIRM ACADEMY HAS TWICE FOUND PEOPLE TO FILL THE POSITIONS SHE ADDS BUT BOTH QUIT TWO WEEKS LATER WITH NEARLY 7 OF AMERICANS UNEMPLOYED AND BIG COMPANIES STILL LAYING OFF WORKERS ONE WOULD THINK JOB APPLICANTS WOULD BE LINED UP AT EVERYONE'S DOOR YET IN A RECENT DUN & BRADSTREET CORP SURVEY OF 519 SMALL BUSINESSES 11 OF THE RESPONDENTS INCLUDING MS ZERRENNER SAID FINDING QUALIFIED AND MOTIVATED EMPLOYEES WAS THEIR MOST PRESSING PROBLEM MORE THAN A QUARTER RANKED IT AMONG THEIR TOP THREE BUSINESS WORRIES INDEED MANY COMPANIES OF ALL SIZES ARE WORRIED ABOUT FINDING GOOD HELP A BIG REASON IS THAT THE GROWTH OF THE US WORK FORCE IS SLOWING IN THE LATE 1970S UP TO THREE MILLION BABY BOOMERS WERE POURING INTO THE JOB MARKET EVERY YEAR BY THE LATE 1980S FEWER THAN TWO MILLION PEOPLE WERE ENTERING THE WORK FORCE EACH YEAR MANY CURRENT JOB SEEKERS LACK SKILLS OR SIMPLY REFUSE TO TAKE LOWPAYING JOBS THIS SITUATION CAN BE ESPECIALLY TOUGH FOR SMALL BUSINESSES MOST AFFECTED ARE THOSE THAT MAINLY EMPLOY WORKERS PAID MINIMUM WAGE OR ON COMMISSION SMALL CONCERNS IN FIELDS WITH UNPLEASANT OR DANGEROUS WORK CONDITIONS FACE ADDED RECRUITING CHALLENGES SO DO FIRMS INVOLVED IN RAPIDLY DEVELOPING TECHNOLOGIES AS WELL AS COMPANIES IN TIGHT LABOR MARKETS LIKE NEBRASKA UTAH INDIANA AND GEORGIA MOST SMALLER EMPLOYERS CAN'T AFFORD TO COMPETE WITH THE HIGHER PAY AND GENEROUS BENEFITS BIG COMPANIES USE TO ATTRACT THE BEST WORKERS SAYS MARY KHOSH A HUMANRESOURCES CONSULTANT AT THE ECKERD COLLEGE MANAGEMENT DEVELOPMENT INSTITUTE IN ST PETERSBURG FLA THEIR LACK OF VISIBILITY AND LACK OF LARGE HUMANRESOURCES DEPARTMENTS COMPOUND THIS HANDICAP BUT HUMANRESOURCE CONSULTANTS SAY MANY COMPANIES DON'T RECRUIT OR MARKET THEMSELVES EFFECTIVELY SUCH EFFORTS COULD INCLUDE WORKING CLOSELY WITH COLLEGE PLACEMENT OFFICES AND SPONSORING LOCAL PROMOTIONAL EVENTS RECRUITERS ALSO SUGGEST THAT COMPANIES CONSIDER HIRING OLDER WORKERS OR RELOCATING TO AREAS WHERE LABOR IS MORE AVAILABLE LOWPAID JOBS REQUIRING THE FEWEST SKILLS CAN BE THE TOUGHEST OPENINGS TO FILL BUSINESS OWNERS SAY BONNIE STIDHAM SAYS SHE NEEDS AT LEAST SIX EMPLOYEES MOSTLY WAITRESSES TO PROPERLY STAFF HER TWO WAFFLE HOUSE RESTAURANTS IN THE INDIANAPOLIS AREA COUNTING TIPS A WAITRESS EARNS ABOUT 200 A WEEK BUT MS STIDHAM SAYS WEEKS OF ADVERTISING IN LOCAL PAPERS AND ON A BILLBOARD HAVE FAILED TO DRAW A SINGLE QUALIFIED APPLICANT I'M TOTALLY BAFFLED SAYS MS STIDHAM A BUSINESS OWNER WHO HAS BEEN WAITING TABLES HERSELF UNTIL SHE FINDS MORE HELP I'VE BEEN IN THIS BUSINESS FOR A LONG TIME AND I'VE NEVER SEEN IT THIS BAD SHE SAYS SHE WOULD OPEN A THIRD OUTLET IF SHE COULD FIGURE OUT A WAY TO STAFF IT SALES AT HER WAFFLE HOUSE GREENWOOD INC ARE EXPECTED TO GROW 8 THIS YEAR TO 17 MILLION MS STIDHAM ADDS AMERIMAC COASTWIDE MORTGAGE CORP A MORTGAGE BROKER IN VISTA CALIF HAS EVEN SPONSORED CAREER NIGHTS TO ATTRACT APPLICANTS FOR THREE LOANOFFICER POSITIONS SAYS STEVEN DUFFIELD VICE PRESIDENT DESPITE A YEARLONG SEARCH THE JOBS STILL REMAIN UNFILLED HE SAYS SOME APPLICANTS ARE DISCOURAGED BY THE PROSPECT OF EARNING JUST COMMISSIONS AS PAY HE CONCEDES MEANWHILE MR DUFFIELD SAYS AMERIMAC HAS A BACKLOG OF DOZENS OF NEWBUSINESS LEADS THAT IT CAN'T PURSUE FOR SOME SMALLBUSINESS OWNERS THE ONLY SOLUTION IS TO RAISE THE ANTE SUSAN CHURCHILL PRESIDENT OF ACC ENVIRONMENTAL CONSULTANTS INC SAYS SHE MAY HAVE TO PAY UP TO 75000 A YEAR TO ATTRACT A SENIOR CONSULTANT TO MEET RISING DEMAND AT HER 20PERSON COMPANY NOW HER HIGHESTPAID CONSULTANTS MAKE 55000 TO 60000 THE ALAMEDA CALIF CONCERN WHICH DETECTS BUILDING ASBESTOS AND CONTAMINATED SOIL AND GROUND WATER EXPECTS TO GENERATE 18 MILLION IN REVENUE THIS YEAR MS CHURCHILL FIGURES SHE RECEIVES A RESUME A DAY FROM COLLEGE GRADUATES SEEKING ENTRYLEVEL POSITIONS IN ENGINEERING OR GEOLOGY BUT ACC NEEDS PROFESSIONALS WHOSE EXPERIENCE IS TAILORED TO HAZARDOUS WASTE DETECTION AND COMPETITION FOR THEM IS FIERCE BECAUSE THE HAZARDOUSWASTE REMEDIATION INDUSTRY IS SO YOUNG TO COPE WITH A SHORTAGE OF SKILLED WORKERS FUTURE PRODUCTS INC DECIDED TO TRAIN UNSKILLED PEOPLE DONALD LENZ PRESIDENT OF THE BENSON MINN MAKER OF SPECIALTY APPAREL AND OTHER PRODUCTS SAYS HE SPENT SEVERAL MONTHS LOOKING FOR 12 TO 18 EXPERIENCED SEWINGMACHINE OPERATORS THE OPERATORS' PIECEWORK PAY USUALLY COMES TO 650 AN HOUR BUT MR LENZ SAYS MANY COMPANIES THAT ONCE TAUGHT EMPLOYEES SUCH SKILLS HAVE MOVED PRODUCTION TO LOWERCOST FOREIGN COUNTRIES AS A RESULT FUTURE PRODUCTS IS SPENDING AT LEAST 8000 PER EMPLOYEE TO TEACH A DOZEN PEOPLE APPAREL MAKING DESPITE THE HIGH COST MR LENZ FIGURES HE MUST INVEST IN SUCH TRAINING HE SAYS HIS COMPANY IS OPERATING AT FULL CAPACITY AND SALES ARE EXPECTED TO DOUBLE THIS YEAR TO 3 MILLION WHEN HE COULDN'T FILL THE OPENINGS HE SAYS I WAS TURNING BUSINESS AWAY 9311190169 931119 ASTORIA FINANCIAL SELLS SHARES LAKE SUCCESS NY ASTORIA FINANCIAL CORP THE NEWLY FORMED HOLDING COMPANY FOR ASTORIA FEDERAL SAVINGS & LOAN ASSOCIATION SAID IT SOLD 132 MILLION SHARES AT 25 A SHARE THE OFFERING WAS IN CONNECTION WITH THE ASSOCIATION'S CONVERSION FROM A MUTUAL SAVINGS ASSOCIATION TO A STOCK SAVINGS ASSOCIATION NET PROCEEDS OF THE OFFERING WILL BE USED BY ASTORIA FINANCIAL AND ASTORIA FEDERAL FOR GENERAL CORPORATE PURPOSES ADAMS COHEN SECURITIES INC OF GREAT NECK NY MANAGED THE OFFERING 9311190168 931119 BOBY EXPRESS PLEADS GUILTY TO TRANSMITTING FUNDS WITHOUT LICENSE NEW YORK A TRAVEL AGENCY PLEADED GUILTY TO TRANSMITTING MONEY WITHOUT A LICENSE AND AGREED TO FORFEIT 17 MILLION THE ATTORNEY GENERAL'S OFFICE SAID IN AN UNDERCOVER INVESTIGATION EARLIER THIS YEAR NEW YORK'S CRIME PROCEEDS STRIKE FORCE WAS ABLE TO CONNECT BOBY EXPRESS CO WITH 17 MILLION IN ILLEGALLY TRANSMITTED FUNDS BETWEEN FEBRUARY 1991 AND MARCH 1993 BOBY INITIALLY APPLIED TO THE STATE'S BANKING DEPARTMENT FOR A LICENSE TO SEND FUNDS TO AN AFFILIATE IN HAITI BUT WITHDREW THE APPLICATION BEFORE IT WAS GRANTED UNDER NEW YORK LAW IT IS ILLEGAL TO RECEIVE OR AGREE TO RECEIVE CERTAIN FUNDS FOR TRANSMISSION WITHOUT A LICENSE SUCH A CRIME IS TREATED AS A FELONY IF THE AMOUNT INVOLVED EXCEEDS 250000 IN A YEAR THE LAW IS MEANT TO STEM THE FLOW OF PROFITS FROM DRUG SALES INTO OFFSHORE BANKS OR TO PAY FOREIGN SUPPLIERS 9311190167 931119 CREDIT RATINGS RELIANCE GROUP RATINGS ARE RAISED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC BOOSTED ITS FINANCIAL STRENGTH RATING OF RELIANCE GROUP HOLDINGS INC'S PROPERTY/CASUALTY INSURANCE UNITS TO BAA3 ITS LOWEST INVESTMENT GRADE THE IMPROVEMENT REFLECTS A NUMBER OF RECAPITALIZATION STEPS BY RELIANCE GROUP THE INSURANCE AND INVESTMENT COMPANY CONTROLLED BY SAUL STEINBERG RELIANCE RECENTLY SOLD 200 MILLION IN COMMON STOCK AS WELL AS 650 MILLION IN NOTES AND DEBENTURES IT WILL USE THE FUNDS TO REDEEM MOST OF ITS PUBLIC DEBT AND WILL LOWER ANNUAL INTEREST EXPENSE BY ABOUT 20 MILLION MOODY'S SAID THE MOVES SIMPLIFIED AND STRENGTHENED RELIANCE'S CAPITAL STRUCTURE THE RATINGS CHANGE AFFECTS SEVEN RELIANCE INSURANCE GROUP MEMBERS WHICH HAD BEEN RATED BA1 MOODY'S SAID THE UPGRADE REFLECTS IMPROVING CORE EARNINGS AND STRENGTHENING OF LOSS RESERVES AS WELL AS A DECLINE IN NONINVESTMENTGRADE SECURITIES HOWEVER MOODY'S NOTED THE PARENT'S CONTINUED DEPENDENCE ON DIVIDENDS AND NET TAX PAYMENTS FROM ITS INSURANCE SUBSIDIARIES TO MEET ITS SIGNIFICANT DEBT SERVICE REQUIREMENTS THE RATINGS AGENCY ALSO SAID COMPETITION COULD ERODE MARGINS IN THE SPECIALTY COMMERCIAL INSURANCE BUSINESS 9311190166 931119 MIDLAND BANK PLC TAKES EQUITY STAKES IN SOME COMPANIES IN RETURN FOR LOANS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LENDING TO SMALL NEW BUSINESSES IS ONE OF THE RISKIER SIDES OF BANKING BUT INCREASINGLY BANKS ARE LIKELY TO TAKE EQUITY STAKES IN COMPANIES AS A SUBSTITUTE FOR MAKING LOANS AT INTEREST RATES MOST SMALL COMPANIES WON'T BE ABLE TO BEAR BANKS HAVE TO GET AN ADEQUATE REWARD FOR TAKING RISKS SAID DAVID MCMEEKIN CORPORATE FINANCE DIRECTOR OF MIDLAND BANK PLC BUSINESSMEN HAVE TO BE PREPARED TO PAY FOR THE FINANCING THAT THEY NEED EVEN FOR COMPANIES TOO SMALL TO ATTRACT THE ATTENTIONS OF MOST INVESTMENT BANKERS EQUITYRELATED FINANCING MAKES SENSE SAID MR MCMEEKIN A STOCKBROKERTURNEDBANKER WHO HAS SPENT THE LAST FIVE YEARS AT MIDLAND PREACHING AN ALTERNATIVE GOSPEL IT'S A SIMPLE NOTION AND ONE ALREADY FAMILIAR IN SOME COUNTRIES SUCH AS GERMANY IN OTHER MARKETS IT AMOUNTS TO LITTLE LESS THAN A REVOLUTION COMMERCIAL BANKERS TRADITIONALLY HAVE SEEN THEMSELVES AS PROVIDERS OF LOANS RATHER THAN EQUITY MANY OWNERS OF SMALL BUSINESSES MEANWHILE HAVE PREFERRED LOAN FINANCE RATHER THAN HAVING AN OUTSIDE SHAREHOLDER LEANING OVER THEIR SHOULDER AND YET MR MCMEEKIN POINTS OUT SMALLBUSINESS FINANCING HAS BEEN A MINEFIELD FOR BANKS LAST YEAR ALONE HE SAID BRITISH BANKS HAD LOSSES OF 15 BILLION 22 BILLION ON SMALLBUSINESS LENDING MANY OF THOSE LOSSES WERE AT LEAST PARTLY DUE TO POOR FINANCIAL MANAGEMENT AND EXCESSIVELY HEAVY DEBTS IN RELATION TO EQUITY AS A SUPPLEMENT TO TRADITIONAL DEBT FINANCING HE ARGUES EQUITY FINANCING CAN BE PROFITABLE BOTH FOR BANKS AND FOR THEIR CLIENTS AS HEAD OF A 30MEMBER TEAM OF DEBTSTRUCTURING AND EQUITYFINANCING SPECIALISTS MR MCMEEKIN'S JOB IS TO ENSURE THAT MIDLAND'S BRANCH BANKING STAFF IS AWARE OF THE BUSINESS OPPORTUNITIES SUCH AN APPROACH CAN OFFER HE ALSO IS RESPONSIBLE FOR PROVIDING APPROPRIATE PRODUCTS TO OFFER THEIR CUSTOMERS GETTING RISKS AND REWARD BETTER UNDERSTOOD IS VITAL FOR THE MODERN BANKER HE SAYS IT HAS BEEN AN UPHILL TASK WHEN MR MCMEEKIN ARRIVED AT THE BANK IN 1988 FROM THE SECURITIES ARM OF ITS MIDLAND MONTAGU UNIT HE ENCOUNTERED A LACK OF AWARENESS OF INVESTMENTBANKING TECHNIQUES AND AN AVERSION ON THE PART OF MANY LOAN OFFICERS TO NEW WAYS OF TAKING ON RISK BRITAIN'S RECESSION IRONICALLY HELPED RAM HOME HIS MESSAGE IN A SCENARIO NOW BEING MIRRORED IN CONTINENTAL EUROPE MIDLAND BANKERS BEGAN WAKING UP TO THE FACT THAT A LOAN IF IT ISN'T REPAID IS AS MUCH OF A BURDEN TO A BANK'S BALANCE SHEET AS AN EQUITY INVESTMENT IN A BANKRUPT FIRM ORGANIZING A SERIES OF COURSES ON INVESTMENT BANKING TECHNIQUES MR MCMEEKIN TAUGHT 800 MIDLAND BRANCH BANKING OFFICERS ABOUT EQUITY FINANCE AND RELATED CONCEPTS LIKE EQUITY OPTIONS IF A LOAN CAN BE COMBINED WITH SOME FORM OF EQUITY FINANCING HE EXPLAINED THE RISK OF LOSING THE BANK'S MONEY MAY WELL BE NO BIGGER THAN IN THE CASE OF A LOAN CONVERSELY IF THINGS GO WELL THE BANK'S CHANCES OF MAKING MONEY BY SELLING THE SHARES AT A HIGHER PRICE THAN IT PAID FOR THEM ARE GREATER THAN IF IT SIMPLY TAKES INTEREST ON A STRAIGHTFORWARD LOAN TO BE SURE SUCH AN APPROACH ISN'T APPROPRIATE FOR MANY SMALL BUSINESSES YOU CAN'T TAKE AN EQUITY STAKE IN A SOLE TRADER OR A PARTNERSHIP SUCH AS A WINDOWCLEANING VENTURE OR A FIRM OF ARCHITECTS BUT IN SOME CASES FIRMS NEEDING MONEY FOR EXPANSION MAY HAVE NO CHOICE EITHER BECAUSE THEY LACK THE COLLATERAL TO BACK A LOAN OR BECAUSE INTEREST CHARGES ARE HIGHER THAN THEY CAN AFFORD GIVEN THE RIGHT TERMS EQUITYRELATED FINANCE HAS A LOT TO OFFER PEOPLE SAID JOHN NICOL CHAIRMAN OF NORBAIN ELECTRONICS PLC A BRITISH COMPANY THAT SELLS CLOSEDCIRCUIT TV SECURITY SYSTEMS EQUITYRELATED FINANCE BRIDGES THE GAP BETWEEN OTHER TYPES OF FINANCING AND A STRAIGHTFORWARD LOAN NORBAIN IS ONE OF MIDLAND'S SUCCESS STORIES IN THIS FIELD THREE YEARS AGO IT NEEDED 1 MILLION TO FINANCE AN ACQUISITION RAISING FUNDS ON THE STOCK MARKET WOULD HAVE LED TO AN UNACCEPTABLE 40 DILUTION OF ITS CAPITAL BUT IT WASN'T FINANCIALLY SOUND ENOUGH TO RAISE A STRAIGHTFORWARD LOAN WITH NO STRINGS ATTACHED SO WHEN A MIDLAND OFFICER PROPOSED TAKING AN OPTION TO BUY A 2 STAKE IN NORBAIN AT 50 OVER ITS THENCURRENT MARKET PRICE IN RETURN FOR GRANTING A LOAN NORBAIN ACCEPTED IT MADE THE ACQUISITION SUCCESSFULLY EXPANDING ITS SALES BASE ITS SHARE PRICE IS NOW 10 TIMES WHAT IT WAS 3 1/2 YEARS AGO AND MIDLAND HAS EXERCISED ITS OPTION EARNING A PAPER PROFIT OF 200000 MIDLAND OFFICERS ARE NOW COMING FORWARD WITH SIMILAR PROPOSALS ON BEHALF OF OTHER CLIENTS IN DOING SO SAID MR MCMEEKIN THEY ARE BRINGING IN BUSINESS THE BANK WOULD HAVE MISSED A FEW YEARS AGO UNDER AN EXPANDED TRAINING PROGRAM 4000 MORE MIDLAND OFFICERS ARE TO BE PUT THROUGH MR MCMEEKIN'S COURSE IN THE NEXT COUPLE OF YEARS MEANTIME HIS 30MEMBER TEAM HAS WON MANAGEMENT SUPPORT FOR A 20 MILLION FUND CALLED MIDLAND GROWTH CAPITAL AIMED AT HELPING FIRMS TOO SMALL TO BE OF INTEREST TO MAINSTREAM VENTURE CAPITALISTS SET UP LAST YEAR THE FUND IS AIMED AT COMPANIES WITH BETWEEN 1 MILLION AND 10 MILLION IN ANNUAL TURNOVER AND PERHAPS 20 TO 30 EMPLOYEES IT HAS ALREADY MADE SIX INVESTMENTS TOTALING 3 MILLION IN FIRMS RANGING FROM AN AUTO TRADE MAGAZINE PUBLISHER TO A PRODUCER OF ENGINEERING TOOLS AND IT HAS 20 MORE PROPOSALS UNDER STUDY ON A WIDER PLANE MR MCMEEKIN HAS HELPED TO PROMOTE THE CREATION OF REGIONAL ENTERPRISE FUNDS IN WHAT HE DESCRIBES AS ENLIGHTENED SELFINTEREST LOCAL BUSINESS LEADERS LAWYERS ACCOUNTANTS AND OTHER PROFESSIONALS HAVE JOINED MIDLAND IN PROVIDING CAPITAL BACKING OUT OF 11 SUCH FUNDS PLANNED NINE ARE ALREADY OPERATING AND TWO MORE ARE DUE TO BE LAUNCHED IN THE NEXT FEW MONTHS THEIR AIM IS TO PROVIDE EQUITY FINANCE BUSINESS ADVICE AND TRAINING FOR FIRMS EVEN SMALLER THAN THOSE TARGETED BY MIDLAND GROWTH CAPITAL 9311190165 931119 HEARD ON THE STREET LOEWS HASN'T KEPT UP WITH TOBACCO RIVALS BUT ITS HOLDINGS OFFER CASE FOR A BARGAIN PLAY BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOBACCO STOCKS HAVE STARTED TO RISE FROM THE ASHES WITH ONE NOTABLE EXCEPTION LOEWS WHOSE LORILLARD CIGARETTE DIVISION HAS PROVIDED MUCH OF THE COMPANY'S PROFITS IN RECENT YEARS HAS RISEN LESS THAN 3 SINCE THE END OF SEPTEMBER CLOSING YESTERDAY AT 94 UP 1/8 MEANWHILE TOBACCO STOCKS HAVE GAINED AN AVERAGE 16 IN THE PERIOD SOME SAVVY MONEY MANAGERS HOWEVER THINK LOEWS COULD SOON CATCH UP WITH THE CROWD DESPITE SIGNS THAT THE CIGARETTE PRICE WAR IS OVER LOEWS HAS HARDLY BUDGED SAYS DONALD YACKTMAN MANAGER OF THE 145 MILLION YACKTMAN FUND WHILE PHILIP MORRIS AND RJR NABISCO HOLDINGS HAVE GONE UP THIS STOCK HASN'T RESPONDED AT ALL LOEWS OF COURSE IS MORE THAN JUST THE MAKER OF NEWPORT KENT AND TRUE CIGARETTES LAST YEAR MOST OF THE NEW YORK COMPANY'S REVENUE CAME FROM ITS 83 STAKE IN INSURER CNA FINANCIAL CORP LOEWS ALSO HAS A HODGEPODGE OF OTHER BUSINESSES AND INVESTMENTS INCLUDING LOEWS HOTELS BULOVA WATCHES OFFSHORE DRILLING RIGS 20 OF BROADCASTER CBS AND 19 OF PAPERMAKER CHAMPION INTERNATIONAL NONETHELESS WHEN PHILIP MORRIS ANNOUNCED ON APRIL 2 THAT IT WAS GOING TO CUT THE PRICE OF ITS FLAGSHIP MARLBORO CIGARETTE BRAND LOEWS GOT SLAMMED ALONG WITH THE OTHER TOBACCO STOCKS THAT DAY PHILIP MORRIS PLUNGED 23 RJR NABISCO HOLDINGS FELL 16 AND LOEWS TUMBLED 15 BUT WHILE PHILIP MORRIS AND RJR HAVE SNAPPED BACK SMARTLY OVER THE PAST SEVEN WEEKS LOEWS HAS LANGUISHED IN LARGE PART BECAUSE THE MARKET HAS TURNED BEARISH ON INSURANCE STOCKS FOR LOEWS'S INVESTORS 1993 IS THE LATEST IN A STRING OF DISAPPOINTING YEARS THESE DAYS THE STOCK TRADES 30 BELOW ITS ALLTIME HIGH OF 135 WHICH WAS HIT IN 1989 MICHAEL KASSEN MANAGER OF THE 12 BILLION NEUBERGER & BERMAN PARTNERS FUND USED TO HAVE A MAJOR POSITION IN LOEWS BUT HE BAILED OUT OF THE STOCK OVER THE SPRING AND SUMMER I GOT TIRED AND FRUSTRATED WITH IT SAYS MR KASSEN IT'S A VERY CHEAP STOCK BUT I OWNED IT FOR OVER THREE YEARS AND I GOT WORN OUT BY IT I PROBABLY SOLD IT AT THE BOTTOM EVEN FANS OF THE STOCK CONCEDE THAT LOEWS ISN'T THE SORT OF COMPANY THAT'S GOING TO CATCH THE STOCK MARKET'S ATTENTION BY REPORTING SURPRISINGLY GOOD EARNINGS THERE'S NO EARNINGS MOMENTUM WHATSOEVER TO THIS THING SAYS TOM JACKSON MANAGER OF THE 2 BILLION PRUDENTIAL EQUITY FUND DESPITE THAT DRAWBACK MR JACKSON COUNTS LOEWS AMONG HIS FUND'S 20 LARGEST POSITIONS BECAUSE IT'S A VERY CHEAP STOCK YOU GET THE BENEFIT OF ANY BOUNCE BACK IN TOBACCO AND YOU'RE NOT PAYING A LOT FOR IT MR JACKSON FIGURES THAT LOEWS'S BUSINESSES AND INVESTMENTS ARE WORTH NORTH OF 150 A SHARE BUT HE ALSO NOTES THAT LOEWS IS UNLIKELY TO TRADE FOR THE FULL VALUE OF ITS ASSETS PEOPLE TEND TO VIEW THIS THING LIKE A CLOSEDEND FUND AND CLOSEDEND FUNDS TEND TO TRADE AT A DISCOUNT TO THEIR ASSETS SAYS MR JACKSON NONETHELESS HE RECKONS LOEWS HAS A LOT TO RECOMMEND IT THE COMPANY HAS REGULARLY BOUGHT BACK ITS OWN STOCK LAURENCE TISCH THE COMPANY'S CHAIRMAN AND ONE OF ITS TWO LARGEST SHAREHOLDERS HAS AN ENVIABLE TRACK RECORD SHAREHOLDERS' CAPITAL HAS GROWN AT AN 185 ANNUAL RATE OVER THE PAST 10 YEARS WHEN YOU COMPARE THAT TO THE OTHER MAJOR INVESTMENT FIRMS THAT'S A HELL OF A GOOD RECORD SAYS MR JACKSON BUT WHEN PRESSED ABOUT THE MERITS OF LOEWS MOST MONEY MANAGERS OFFER ONE KEY REASON FOR OWNING THE STOCK IT'S DIRT CHEAP IT LOOKS LIKE AN INEXPENSIVE STOCK IN WHAT APPEARS TO BE AN EXPENSIVE MARKET SAYS BRIAN ROGERS MANAGER OF THE 28 BILLION T ROWE PRICE EQUITYINCOME FUND HOW CHEAP IS LOEWS THE MATH IS RELATIVELY SIMPLE FORGET ABOUT THE TOBACCO BUSINESS THE WATCHES THE HOTELS AND THE DRILLING RIGS INSTEAD JUST CONSIDER THE VALUE OF LOEWS'S INVESTMENT IN THREE PUBLICLY TRADED COMPANIES CNA FINANCIAL CBS AND CHAMPION INTERNATIONAL BASED ON CURRENT STOCK PRICES THOSE THREE POSITIONS ALONE ARE WORTH AROUND 87 FOR EVERY LOEWS SHARE WITH LOEWS'S STOCK AT 94 TODAY'S BUYERS ARE EFFECTIVELY GETTING THE REST OF THE COMPANY FOR 7 A SHARE INCLUDING THE LUCRATIVE TOBACCO BUSINESS EVEN IF EVERYBODY IN THE COUNTRY STOPPED SMOKING LORILLARD CIGARETTES TOMORROW LOEWS WOULD STILL BE A MODERATELY CHEAP STOCK SAYS JAMES GIPSON MANAGER OF THE 290 MILLION CLIPPER FUND I SHOULD ADD THAT I DON'T THINK THAT'S LIKELY TO HAPPEN NINE MONTHS ENDED SEPT 30 1993 THIRD QUARTER SEPT 30 1993 9311190164 931119 FLEET FINANCIAL'S WORKFORCE CUTS TO BE SUBSTANTIAL' BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON FLEET FINANCIAL GROUP IS EXPECTING SIGNIFICANT WORKFORCE REDUCTIONS FROM AN AN EFFICIENCYIMPROVEMENT PROGRAM THAT WILL BEGIN IN 1994 TERRENCE J MURRAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID MR MURRAY ADDRESSING A GROUP OF BOSTON BUSINESS EXECUTIVES ALSO SAID THAT FLEET WAS AIMING AT 50 COST REDUCTIONS IN SOME BUSINESS AREAS AND SUGGESTED THAT ITS BRANCH NETWORK WOULD BE ONE SECTOR WHERE CUTS COULD BE SUBSTANTIAL FLEET HAD SAID THE EFFICIENCY REVIEW WOULD RESULT IN SOME LAYOFFS THE BANK HOLDING COMPANY HAS ABOUT 27000 EMPLOYEES 469 BILLION IN ASSETS 1200 OFFICES AND 800 BANKING BRANCHES WE'RE GOING TO BE LOOKING AT OUR BRANCH NETWORK MR MURRAY SAID IT'S VERY EXPENSIVE AND INFLEXIBLE FLEET IS MOVING FURTHER TOWARD AUTOMATED CASH MACHINES IN RETAIL OUTLETS TELEPHONE BANKING AND OTHER LESSEXPENSIVE MEANS OF CONDUCTING TRANSACTIONS HE SAID DUPLICATION AND INEFFICIENCIES ARE COSTING FLEET HUNDREDS OF MILLIONS OF DOLLARS MR MURRAY SAID ALTHOUGH THERE ARE NO TARGETS FOR COST SAVINGS OR STAFF REDUCTIONS IN THE REVIEW HE ADDED BOTH ARE EXPECTED TO BE VERY SIGNIFICANT THE INTERNAL REVIEW CALLED FLEET FOCUS '94 BEGAN IN SEPTEMBER AND IS DESIGNED TO IMPROVE PROFITABILITY AND RETURNS THE BANK HAS SAID IT WOULD LIKE TO IMPROVE ITS LONGTERM RETURN ON ASSETS TO BETWEEN 130 AND 150 FROM THE CURRENT 1 FLEET WHICH LIKE MANY BANKS IS BENEFITING FROM REDUCED NONPERFORMING LOANS REPORTED NET INCOME OF 352 MILLION OR 216 A SHARE FOR THE FIRST NINE MONTHS UP FROM 1975 MILLION OR 125 A SHARE IN 1992'S FIRST THREE QUARTERS OUR EARNINGS ARE GOOD MR MURRAY SAID BUT NOT ALWAYS FOR THE RIGHT REASONS HE CITED INEFFICIENCIES SUCH AS LENGTHY INTERNAL MEMOS ON LOAN DECISIONS AND CHECKINGACCOUNT STATEMENTS THAT ARE TAKING TOO LONG TO GET TO THE BANK'S MOST PROFITABLE RETAIL CUSTOMERS MR MURRAY SAID COSTCUTTING AND REENGINEERING THAT TAKES ADVANTAGE OF ADVANCES IN INFORMATION TECHNOLOGY WILL BE CRITICAL TO BANKING IN COMING YEARS HE SAID HE EXPECTS CONSOLIDATION IN THE INDUSTRY TO CONTINUE TO THE POINT WHERE THERE WOULD BE ABOUT 6000 BANKS IN THE COUNTRY A DECADE FROM NOW DOWN FROM ABOUT 12000 NOW FLEET HAS LARGELY GROWN THROUGH ACQUISITIONS AND HAS PENDING AN AGREEMENT TO ACQUIRE STERLING BANCSHARES CORP OF WALTHAM MASS FOR 125 MILLION 9311190163 931119 ALLIANCE CAPITAL TO BUY SHIELDS NEW YORK ALLIANCE CAPITAL MANAGEMENT LP SAID IT AGREED TO ACQUIRE SHIELDS ASSET MANAGEMENT INC AND ITS REGENT INVESTOR SERVICES INC UNIT FOR 85 MILLION SHIELDS AND REGENT BOTH INVESTMENT COMPANIES HAD ABOUT 8 BILLION IN ASSETS UNDER MANAGEMENT AS OF SEPT 30 ALLIANCE WHICH HAS ABOUT 1114 BILLION IN ASSETS UNDER MANAGEMENT SAID THAT IT WILL ISSUE KEY EMPLOYEES OF SHIELD AND REGENT LIMITED PARTNERSHIP UNITS AS PART OF THE PLAN 9311190162 931119 WHAT'S NEWS BUSINESS AND FINANCE BUSINESSES ANTICIPATE BIG BENEFITS FROM THE NORTH AMERICAN FREE TRADE AGREEMENT EXECUTIVES AT LARGE AND SMALL COMPANIES IN SECTORS RANGING FROM AGRICULTURE TO BANKING TO TRANSPORTATION ARE TALKING OPTIMISTICALLY ABOUT EXPANDED OPPORTUNITIES SOUTH OF THE BORDER AND INCREASED JOBS IN THE US THE SUCCESSFUL FIGHT FOR NAFTA IS THE LATEST EXAMPLE OF HOW THE CLINTON ADMINISTRATION IS AGGRESSIVELY WOOING BIG BUSINESS CLINTON'S NAFTA VICTORY RAISED HOPES AMONG WORLD TRADE NEGOTIATORS THAT THEY COULD MEET THE DEC 15 DEADLINE FOR CONCLUDING TALKS ON THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT THE OPTIMISM IS TEMPERED BY A GROWING FEELING THAT A GATT PACT MAY NOT BE AS BROAD AS ONCE ENVISIONED A STRIKE BY AMERICAN AIR'S FLIGHT ATTENDANTS UNION WAS FAR MORE SUCCESSFUL THAN THE CARRIER EXPECTED AS THE AMR UNIT WAS FORCED TO CANCEL SCORES OF FLIGHTS AND STRAND THOUSANDS OF PASSENGERS IN THE US AND ABROAD BOND PRICES DROPPED DRAGGING DOWN STOCKS AFTER BEING DOWN MORE THAN 35 POINTS THE DOW JONES INDUSTRIAL AVERAGE ENDED AT 368534 DOWN 1901 POINTS THE PRICE OF THE TREASURY'S 30YEAR BENCHMARK BOND FELL 7/8 POINT ITS YIELD CLIMBED TO 624 ITS HIGHEST LEVEL SINCE AUGUST MEXICO CITY STOCK PRICES ROSE TO A RECORD THE SIXTH IN SEVEN SESSIONS AFTER THE US HOUSE PASSED NAFTA EUROPEAN BOURSES ALSO GOT A LIFT FROM US APPROVAL OF THE TRADE AGREEMENT PENNZOIL SOLD NEARLY 82 MILLION SHARES OF CHEVRON STOCK RAISING QUESTIONS ON WALL STREET AND IN THE OIL INDUSTRY AS TO HOW THE COMPANY WILL SPEND THE PROCEEDS OF 721 MILLION A FLEET FINANCIAL UNIT IS NEGOTIATING WITH THE GEORGIA ATTORNEY GENERAL TO SETTLE ALLEGATIONS IT SINGLED OUT MINORITIES FOR HIGHINTEREST MORTGAGES PERSONAL COMPUTER MAKERS ARE CUTTING PRICES FASTER THAN EXPECTED ON MACHINES BASED ON INTEL'S PENTIUM CHIP SIGNALING THE COMING OF A COMPUTER PRICE WAR NEXT YEAR THE HOUSE VOTED TO IMPOSE ROYALTIES FOR THE FIRST TIME FOR HARDROCK MINING ON FEDERAL LAND THE BILL WOULD REQUIRE MINERS TO PAY ROYALTIES OF 8 OF THE GROSS VALUE OF EXTRACTED MINERALS SUCH AS GOLD SILVER OR COPPER KAYE SCHOLER PARTNER PETER FISHBEIN WAS CLEARED BY AN ATTORNEYDISCIPLINE BOARD OF MISCONDUCT IN HIS REPRESENTATION OF LINCOLN SAVINGS & LOAN THE PANEL'S DECISION RAISES QUESTIONS ABOUT WHETHER THRIFT REGULATORS ACTED UNFAIRLY AGAINST THE LAW FIRM SONY SIGNED LONGTERM CONTRACTS WITH EXECUTIVES OF ITS FILMED ENTERTAINMENT MUSIC AND ELECTRONIC PUBLISHING UNITS IN AN EFFORT TO SHOW ITS COMMITMENT TO THE ENTERTAINMENT INDUSTRY HOUSE AND SENATE CONFEREES APPROVED A COMPROMISE BILL TO PROVIDE FUNDING FOR THE THRIFT CLEANUP AGENCY CALIFORNIA'S TOP AIRPOLLUTION COP RESIGNED AS CHAIRWOMAN OF THE CALIFORNIA AIR RESOURCES BOARD APPARENTLY BECAUSE OF GROWING INDUSTRIAL OPPOSITION TO HER REGULATORY POLICIES TRAVELERS AND ITS PARTNERS POSTPONED PLANS TO TAKE A STAKE IN MERRETT GROUP ONE OF THE MAIN UNDERWRITING GROUPS IN LLOYD'S OF LONDON LLOYD'S NOW FACES THE EMBARRASSING PROSPECT OF ITS FIFTHLARGEST UNDERWRITING GROUP BEING PUSHED INTO LIQUIDATION THE FED WILL BOOST SHORTTERM INTEREST RATES BY ABOUT 1 1/2 PERCENTAGE POINTS OVER THE NEXT YEAR OR SO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID IN ITS REVIEW THE OECD SAID THE FED SHOULD BEGIN TO RAISE RATES AT THE TURN OF THE YEAR TO AVOID CREATING INFLATIONARY PRESSURES BONDS LEHMAN BROTHERS TREASURY INDEX 551589 OFF 3609 COMMODITIES OIL 1669 A BARREL OFF 35 CENTS DOW JONES FUTURES INDEX 13383 UP 008 SPOT INDEX 12275 UP 057 DOLLAR 10729 YEN UP 044 17128 MARKS UP 00098 9311190161 931119 ERICSSON'S PROFIT SURGED NINEFOLD IN THIRD QUARTER BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM TELEFON AB LM ERICSSON REPORTED A NINEFOLD SURGE IN THIRDQUARTER PRETAX PROFIT AS BOOMING SALES OF DIGITAL CELLULAR NETWORK EQUIPMENT CONTINUED TO OUTWEIGH A DEEP RECESSION BATTERING MANY OF THE COMPANY'S TRADITIONAL CUSTOMER GROUPS ERICSSON'S CHIEF EXECUTIVE LARS RAMQVIST SAID RESULTS OF THE RADIO COMMUNICATIONS DIVISION ONCE AGAIN EXCEEDED INTERNAL COMPANY PROJECTIONS IN THE LATEST PERIOD MR RAMQVIST CONCEDED IT WASN'T REALISTIC TO EXPECT ERICSSON TO SUSTAIN THE 70 SHARE OF NEW PANEUROPEAN DIGITAL CELLULAR SYSTEM SALES IT HAS CAPTURED TO DATE BUT ASSUMING THERE ISN'T DRASTIC DETERIORATION IN ECONOMIC CONDITIONS OR ANY MAJOR POLITICAL SURPRISES IN KEY MARKETS I EXPECT CONTINUED POSITIVE DEVELOPMENT NEXT YEAR AS WELL HE SAID THE COMPANY MADE A MINOR ADJUSTMENT OF ITS FULLYEAR PROFIT FORECAST SAYING PRETAX PROFIT WAS NOW EXPECTED TO SOMEWHAT MORE THAN DOUBLE FROM 13 BILLION SWEDISH KRONOR 1584 MILLION LAST YEAR HOWEVER MR RAMQVIST INSISTED THE CHANGE WAS MORE STYLE THAN SUBSTANCE PROMPTED BY SOME ANALYSTS' ESTIMATES THAT ERICSSON'S PROFIT MIGHT TRIPLE OR EVEN QUADRUPLE RATHER THAN DOUBLE AS THE COMPANY ITSELF HAD PROJECTED ERICSSON SAID THIRDQUARTER PRETAX PROFIT SOARED TO 569 MILLION KRONOR FROM 63 MILLION KRONOR A YEAR EARLIER IN THE FIRST NINE MONTHS PRETAX PROFIT ROSE TO 186 BILLION KRONOR FROM 122 MILLION KRONOR THE COMPANY SAID THIRDQUARTER SALES INCREASED 55 TO 1502 BILLION KRONOR FROM 97 BILLION KRONOR IN THE FIRST NINE MONTHS SALES INCREASED 41 TO 424 BILLION KRONOR WHILE ORDERS SPURTED 30 TO 4492 BILLION KRONOR EXCLUDING CURRENCY FLUCTUATIONS SALES ROSE 20 AND ORDERS 10 IN THE NINE MONTHS FROM AN EXCEPTIONALLY STRONG YEAREARLIER PERIOD ERICSSON SAID BECAUSE OF ITS TRADITIONAL POLICY OF HEDGING EXPOSURE TO FOREIGN CURRENCIES THE KRONA'S SHARP DEPRECIATION HASN'T YET AFFECTED ERICSSON'S BOTTOM LINE OFFICIALS ADDED HOWEVER CHIEF FINANCIAL OFFICER CARL WILHELM ROS NOTED THAT ALMOST ALL REMAINING HEDGING CONTRACTS WERE CLOSED DURING THE THIRD QUARTER AS A RESULT MR ROS PREDICTED ERICSSON WOULD REAP A PRONOUNCED POSITIVE EFFECT FROM CURRENCY FLUCTUATIONS IN THE FOURTH QUARTER 9311190160 931119 PENNZOIL SELLS NEARLY 82 MILLION SHARES OF CHEVRON CORP STOCK FOR 721 MILLION BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON PENNZOIL CO SOLD NEARLY 82 MILLION SHARES OF CHEVRON CORP STOCK RAISING QUESTIONS ON WALL STREET AND IN THE OIL PATCH AS TO HOW THE COMPANY WILL SPEND THE PROCEEDS OF 721 MILLION INITIALLY WE'RE GOING TO PUT IT IN SHORTTERM INVESTMENTS A PENNZOIL SPOKESMAN SAID I CAN'T SPECULATE LONG TERM OTHERS HAVE FROM ANALYSTS TO SHORTSELLERS TO OILINDUSTRY EXECUTIVES SEVERAL SUGGESTED PENNZOIL WILL NEED CASH TO PAY A TAX BILL THAT THE COMPANY HAS SAID COULD TOTAL 786 MILLION INCLUDING INTEREST DATING BACK TO THE DAISY CHAIN OF EVENTS THAT PUT PENNZOIL IN THE POSITION OF OWNING CHEVRON STOCK IN THE FIRST PLACE OTHERS SAID THE COMPANY WAS LOOKING TO RAISE MONEY TO DEVELOP FASTER THE 117 BILLION OF GULF OF MEXICO OIL AND GAS PROPERTIES IT RECEIVED FROM CHEVRON LAST YEAR IN A SWAP FOR ANOTHER BLOCK OF CHEVRON STOCK FINALLY SOME SAID PENNZOIL WOULD GO SHOPPING FOR MORE PROPERTIES OR AN ENTIRE COMPANY YESTERDAY'S STOCK SALE LEAVES PENNZOIL WITH ABOUT NINE MILLION CHEVRON SHARES OR A 28 STAKE THE REMAINING SHARES ARE TIED TO PENNZOIL SECURITIES AND ARE UNLIKELY TO BE SOLD SOON PENNZOIL AT ONE POINT HAD A 94 INTEREST IN CHEVRON VALUED AT AROUND 222 BILLION THAT IT ACCUMULATED FROM 1989 THROUGH 1991 THE SALE OF STOCK YESTERDAY WAS SO LARGE THAT THE SHEER VOLUME SENT CHEVRON'S STOCK PRICE TUMBLING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CHEVRON ENDED AT 89 DOWN 4 IN SAN FRANCISCO A CHEVRON SPOKESMAN SAID THE COMPANY DOESN'T COMMENT ON STOCK ACTIVITY AND HE DECLINED TO CHARACTERIZE THE COMPANY'S REACTION TO THE THE SALE PENNZOIL SHARES ROSE SLIGHTLY IN BIG BOARD COMPOSITE TRADING TO 58125 UP 625 CENTS BOLSTERED BY STRONG EARNINGS CHEVRON STOCK HAD BEEN TRADING AT NEARLY A 52WEEK HIGH RECENTLY THAT WAS ONE REASON PENNZOIL SOLD ITS SHARES NOW THE SPOKESMAN SAID THE COMPANY ACQUIRED ITS CHEVRON STOCK FOR AN AVERAGE PRICE OF 6736 EACH AND SOLD THE NEARLY 82 MILLION SHARES YESTERDAY AT AN AVERAGE PRICE OF 89 A SHARE FOR A PROFIT OF MORE THAN 21 A SHARE OR 176 MILLION COMMISSIONS FOR THE THREE FIRMS THAT SOLD THE CHEVRON STOCK LEHMAN BROTHERS MERRILL LYNCH & CO AND SMITH BARNEY HARRIS UPHAM & CO ATE AWAY ABOUT 5 MILLION OR 60 CENTS A SHARE OF PENNZOIL'S PROCEEDS PENNZOIL SAID IT WILL TAKE A PRETAX GAIN OF 171 MILLION IN THE FOURTH QUARTER PENNZOIL'S SPOKESMAN ALSO SAID THAT BY SELLING THE SHARES BEFORE YEAR END THE COMPANY CAN USE CERTAIN TAX BENEFITS THAT IN EFFECT ADD ABOUT 470 A SHARE TO ITS PROFIT FROM THE SALE GEORGE GASPAR AN OIL ANALYST AT ROBERT W BAIRD & CO IN MILWAUKEE SPECULATED THAT PENNZOIL SOLD THE SHARES BECAUSE IT FEARS IT MAY RECEIVE AN ADVERSE RULING FROM THE INTERNAL REVENUE SERVICE ON ITS LONGSTANDING TAX SITUATION PENNZOIL MAY NOT BE SURE WHAT'S COMING SO IT MAY WANT TO MAKE SURE IT HAS ENOUGH MONEY HE SAID THE POTENTIAL TAX LIABILITY STEMS FROM A 3 BILLION PAYMENT PENNZOIL RECEIVED FROM TEXACO INC IN 1988 THAT SETTLED A MAMMOTH LEGAL FIGHT THE TWO COMPANIES HAD OVER TEXACO'S ACQUISITION OF GETTY OIL CO PENNZOIL WHICH WAS TRYING TO ACQUIRE A PORTION OF GETTY INVESTED THE PROCEEDS OF ITS PAYMENT FROM TEXACO IN CHEVRON STOCK AND HAS TRIED TO CONVINCE THE IRS THAT THE MONEY SHOULDN'T BE TAXED AS A NORMAL SETTLEMENT THE PENNZOIL SPOKESMAN SAID THAT THE COMPANY EXPECTS AN IRS RULING BY THE END OF THE YEAR BUT THAT THE AGENCY HASN'T SENT THE COMPANY ANY COMMUNICATION THAT WOULD INDICATE HOW IT WILL RULE IF THE IRS RULES UNFAVORABLY THE SPOKESMAN SAID PENNZOIL WOULD PROBABLY TRY TO NEGOTIATE A SETTLEMENT WHICH COULD TAKE THREE MONTHS TO SIX MONTHS TO RESOLVE IF THE IRS AND PENNZOIL COULDN'T AGREE PENNZOIL COULD THEN FILE SUIT BUT WOULD HAVE TO PAY THE ASSESSMENT AT THAT TIME THE SPOKESMAN SAID HE ADDED THE TAXES HAVE BEEN PROVIDED FOR FROM AN ACCOUNTING STANDPOINT BARRING A BIG TAX HIT MANY WONDERED WHETHER PENNZOIL WOULD ONCE AGAIN LOOK TO TAKE OVER ANOTHER COMPANY WILLIAM HYLER AN OIL ANALYST AT OPPENHEIMER & CO IN NEW YORK SAID THAT WITH OIL PRICES WEAK THE MARKET MAY PROVIDE PENNZOIL WITH A GOOD OPPORTUNITY FOR AN ACQUISITION THAT THOUGHT HAS CROSSED THE MINDS OF MANY SMALLER OIL COMPANIES HERE WE GO AGAIN SAID AN EXECUTIVE AT ONE 9311190159 931119 DUMP THE STUFF IN TIMES SQUARE AND DISPOSAL BECOMES AUTOMATIC BY NAMJU CHO STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THEY'RE DEFINITELY NOT THE RIGHT STUFF THEY ONLY LOOK LIKE CHANEL BAGS POLO SHIRTS GUCCI WATCHES AND PIERRE CARDIN NECKTIES HOW TO DISPOSE OF TONS OF THEM IS THE PROBLEM NOW VEXING OFFICIALS OF THE JOINT INVESTIGATION TEAM FOR VIOLATORS OF INTELLECTUAL PROPERTY RIGHTS AT THE SEOUL DISTRICT PROSECUTOR'S OFFICE THIS YEAR PROSECUTORS HAVE CONFISCATED ABOUT ONE MILLION COUNTERFEIT ITEMS THEY ALSO HAVE CONVICTED 388 VIOLATORS MOST OF WHOM WERE CAUGHT TRYING TO PASS OFF FAKES AS THE REAL MCCOY IN SUCH TOURIST SHOPPING SPOTS AS EAST GATE MARKET AND ITAEWON SITUATED NEAR US MILITARY BASES NOW THE OVERLY SUCCESSFUL OFFICIALS HAVE TO DISPOSE OF BOGUS MERCHANDISE VALUED AT MORE THAN 125 MILLION THE CACHE INCLUDES EVERYTHING FROM HOTPINK POLKADOT PANTIES WITH PIERRE CARDIN EMBLAZONED ALONG THE WAISTLINE TO TODDLERS' OVERALLS FEATURING A SLIGHTLY ANEMICLOOKING MICKEY MOUSE AT GREAT EXPENSE OFFICIALS HAVE BEEN FORCED TO RENT A THIRD WAREHOUSE IN A TRENDY RESIDENTIAL DISTRICT AFTER THEY FILLED UP TWO OTHER STORAGE FACILITIES WHAT WE HAVE HERE IS AN IMBALANCE OF INPUT AND OUTPUT SAYS KIM KIJUNG ONE OF THE PROSECUTORS HE ADDS I DON'T KNOW WHERE WE'LL BURN THE GOODS BUT CERTAINLY NOT OUTDOORS HE IS REFERRING TO ENVIRONMENTAL CONCERNS THAT HAVE MEANT THE TEAM CAN BURN ONLY A FEW ITEMS AT A TIME A MASS BURIAL MIGHT DO THE TRICK BUT THAT WOULD ENTAIL SEPARATING THE BIODEGRADABLES SUCH AS LEATHER GOODS FROM SYNTHETIC MATERIALS LIKE IMITATIONLEATHER BAGS WATCHES KEY CHAINS AND JEWELRY THAT CAN'T BE STRIPPED OF THEIR LABELS WILL HAVE TO BE FED INTO CRUSHING MACHINERY AND THEN DUMPED AT A WASTE SITE DONATING COUNTERFEIT CLOTHING TO CHARITIES WITHOUT THE BRAND LABELS IS AN OPTION MR KIM SAYS BUT ECONOMICALLY SPEAKING THE COST OF REMOVING THE TAGS IS MORE THAN THE WHOLESALE PRICE OF THE ITEMS THEMSELVES SO PROSECUTORS HOPE TO RECRUIT THE RED CROSS TO VOLUNTARILY DEBRAND THE GOODS AND DISTRIBUTE THEM A SPOKESMAN FOR THE RED CROSS HERE SAYS THE ORGANIZATION IS CONSIDERING THE REQUEST THE INVESTIGATORS ALSO CONSIDERED DONATING THE MERCHANDISE WITH THE BRAND TAGS INTACT BUT THEY DECIDED AGAINST IT BECAUSE OF FEARS THAT THE RECIPIENTS WOULD SELL THE GOODS WE PROSECUTORS ARE VERY SUSPICIOUS PEOPLE MR KIM SAYS 9311190158 931119 THURSDAY'S MARKETS BONDS SLIDE PULLING INDUSTRIAL AVERAGE LOWER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES BUCKLED IN THE FACE OF ANOTHER BIG RETREAT IN BOND PRICES THE DOLLAR ROSE BUT THE HEAVIEST SELLING OCCURRED AMONG MEDIUM TO SMALLCAPITALIZATION STOCKS BATTERED BY SHARP LOSSES IN TECHNOLOGY AND TELECOMMUNICATIONS ISSUES THE NASDAQ COMPOSITE INDEX TUMBLED 802 TO 75434 PLUNGING FOR THE FOURTHSTRAIGHT DAY TO ITS LOWEST CLOSE SINCE SEPT 23 SO FAR THIS WEEK THE NASDAQ COMPOSITE HAS DECLINED BY 32 OF ITS VALUE ANYTHING THAT TRADERS JUMPED ON A FEW WEEKS AGO AND SAID THERE'S INSTANT MONEY TO BE MADE HERE' IS DOWN SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER MR GALLAGHER SAID A NUMBER OF STOCKS WERE SEVERELY DAMAGED IN THE SELLOFF MANY OF THE STOCKS PARTICULARLY TELECOMMUNICATIONS ISSUES HAD RALLIED RECENTLY AMID THE MARKET'S MERGER MANIA THE BROADBASED DECLINES IN THE STOCK MARKET CAME AS INTEREST RATES CONTINUED TO CLIMB THE YIELD ON THE TREASURY'S 30YEAR BOND CLIMBED TO 624 ITS HIGHEST LEVEL SINCE AUG 18 FROM 618 WEDNESDAY A LOT OF PEOPLE ANTICIPATED THAT THERE WOULD BE THIS GREAT RESPONSE TO THE PASSAGE OF NAFTA AND IT NEVER MATERIALIZED SAID STEVE RICCHIUTO CHIEF FINANCIAL ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES INC THE TRADE ACCORD CLEARED THE US HOUSE OF REPRESENTATIVES WEDNESDAY NIGHT IN ADDITION BOND INVESTORS HAD TO CONTEND WITH SOME UNSETTLING NEWS ON THE ECONOMIC FRONT JOBLESS CLAIMS FELL 20000 TO 338000 DURING THE WEEK ENDED SATURDAY A BIGGER DROP THAN MOST ECONOMISTS HAD PREDICTED AND THE PHILADELPHIA FEDERAL RESERVE'S INDEX OF LOCAL BUSINESS ACTIVITY JUMPED TO 224 DURING NOVEMBER FROM 151 IN OCTOBER THOUGH BONDS TRIED TO RALLY IN THE MORNING IN SPITE OF THE NEWS MR RICCHIUTO SAID THE MARKET COULDN'T MUSTER ENOUGH STRENGTH ESPECIALLY GIVEN THAT THE TREASURY IS EXPECTED TO SELL LARGE AMOUNTS OF DEBT SECURITIES NEXT WEEK WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 007 TO 11098 IN MAJOR MARKET ACTION STOCK PRICES DROPPED VOLUME TOTALED 3104 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 795 ISSUES ROSE AND 1276 FELL BOND PRICES PLUNGED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL 7/8 POINT OR 875 FOR EACH 1000 FACE AMOUNT THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17128 MARKS AND 10729 YEN COMPARED WITH 17030 MARKS AND 10685 YEN WEDNESDAY 9311190157 931119 TRADING HOUSES IN JAPAN POST DROP IN RESULTS RISE IN YEN AND RECESSION CITED IN CONTINUATION OF RECENT YEARS' TREND SPECIAL TO THE WALL STREET JOURNAL TOKYO THE YEN'S APPRECIATION AND THE SLUGGISH WORLD ECONOMY WREAKED MORE HAVOC ON JAPANESE TRADING HOUSES' EARNINGS AS REVENUE AND PROFIT DECLINED IN THE FISCAL FIRST HALF ENDED SEPT 30 MOST OF THE NUMBERS WERE AS EXPECTED AS THE TREND OF THE PAST COUPLE OF YEARS STRETCHED ON AGGRAVATED THIS TIME BY THE SHARPLY STRONGER YEN WHICH FURTHER CUT SALES OF THE NINE MAJOR TRADING HOUSES THAT LISTED THEIR RESULTS ALL POSTED YEARONYEAR DECLINES IN SALES AND ALL BUT TWO HAD DROPS IN PRETAX PROFIT AMONG THE LARGER COMPANIES SUMITOMO CORP SAID ITS SALES FELL 12 TO 7553 TRILLION YEN 7065 BILLION IN THE FIRST HALF OF THE FISCAL YEAR ENDING MARCH 31 1994 MITSUBISHI CORP WAS DOWN 78 ON THE YEAR TO 6918 TRILLION YEN WHILE ITOCHU CORP SAID ITS SALES SHRANK 14 TO 7879 TRILLION YEN HIROSHI NAKAJIMA TRADING HOUSE ANALYST AT YAMAICHI RESEARCH INSTITUTE NOTED THAT THE MAJOR TRADING HOUSES BLAMED THE YEN'S APPRECIATION ALONE FOR DECLINES IN REVENUE AVERAGING ROUGHLY 500 BILLION YEN A HIGHER YEN IN FOREIGNCURRENCY MARKETS MAKES JAPANESE PRODUCTS MORE COSTLY OVERSEAS THE STAGNANT WORLD ECONOMY ALSO DAMPED BUSINESS ACTIVITIES FOR THE TRADING HOUSES TWO OF THE COMPANIES MARUBENI CORP AND NICHIMEN CORP SAID THAT DESPITE THE RECESSION AND THEIR LARGE SALES DECREASES OF 19 AND 11 RESPECTIVELY THEIR PRETAX PROFITS ROSE MARUBENI OFFICIALS SAID A 26 BILLIONYEN REDUCTION IN DEBTSERVICING COSTS TIED TO RECENT DECLINES IN INTEREST RATES PLAYED A MAJOR ROLE IN BOOSTING ITS PRETAX PROFIT MARUBENI'S PRETAX PROFIT WAS UP 35 TO 2066 BILLION YEN AND NICHIMEN'S WAS UP 32 TO 631 BILLION YEN MANY OF THE TRADING COMPANIES INCLUDING SUMITOMO AND ITOCHU REPORTED REVENUE DECLINES IN ALL PRODUCT CATEGORIES REFLECTING THE ECONOMIC SLOWDOWN ACROSS THE BOARD MITSUI & CO WAS DOWN IN ALL SECTORS EXCEPT NONFERROUS METALS WHICH WERE HELPED IN PART BY ACTIVE DEALING IN PRECIOUS METALS TOMEN CORP WAS DOWN IN EVERY SECTOR BUT MACHINERY HELPED BY EXPORTS OF INDUSTRIAL PLANTS BUT REVENUE FROM FUEL AND CHEMICAL PRODUCTS ACCOUNTING FOR ABOUT 1530 OF TOTAL SALES AT MOST OF THE COMPANIES WAS DOWN THROUGHOUT THE INDUSTRY DRIVEN BY THE LOWER VALUE OF THE DOLLAR AND DECLINES IN WORLD OIL PRICES MACHINERY SALES WERE GENERALLY LOWER AS MOST BUSINESSES SHIED AWAY FROM CAPITAL EXPENDITURES ON PLANT AND EQUIPMENT DURING THE LATEST REPORTING PERIOD THE DECLINE IN MOTOR VEHICLE SALES DETRACTED FROM MACHINERY REVENUE AS WELL TEXTILE SALES WERE ALSO LOWER AGAINST THE BACKDROP OF WEAK CONSUMER PURCHASES OF CLOTHING IN JAPAN ANALYSTS NOTED THAT IMPORTS AND DOMESTIC OPERATIONS OF TRADING HOUSES WERE HURT BY LOWER DOMESTIC CONSUMPTION AS A RESULT OF THE WEAK ECONOMY EXPORTS ON THE OTHER HAND WERE IMPAIRED BY THE YEN'S RISE MANY OF THE COMPANIES ALSO CONTINUED EFFORTS TO RECOVER FROM EXCESSES OF THE HEADY BUBBLE ERA OF THE LATE 1980S THAT WAS CHARACTERIZED BY SOARING ASSET PRICES AS THEY WORKED IN THE RECENT TERM TO WRITE DOWN LATENT LOSSES TIED TO CERTAIN INVESTMENT FUNDS POPULAR IN THE PERIOD OFFICIALS AT ITOCHU FOR INSTANCE SAID THEY ARE WORKING AGGRESSIVELY TO WRITE DOWN LATENT LOSSES ON THE TRUST FUNDS ITOCHU NOW HAS ABOUT 129 BILLION YEN INVESTED IN SUCH ACCOUNTS THEY SAID NISSHO IWAI CORP DECLARED AN EXTRAORDINARY LOSS OF 82 BILLION YEN IN ORDER TO TRIM THE SIZE OF ITS TRUST FUNDS BY 46 BILLION YEN IT OFFSET THAT COST ALONG WITH OTHER COSTS TIED TO LIQUIDATING OR TREATING AFFILIATED COMPANIES THROUGH EXTRAORDINARY INCOME FROM THE SALE OF LAND IN DOWNTOWN TOKYO NISSHO IWAI HAD 144 BILLION YEN INVESTED IN SUH TOKKIN MONEY TRUSTS AT THE END OF THE RECENT TERM DOWN FROM 190 BILLION YEN AT THE END OF FISCAL 1992 IT AIMS TO HAVE THE TOTAL BELOW 100 BILLION YEN BY THE MARCH 1994 END OF THE CURRENT YEAR OFFICIALS SAID MARUBENI OFFICIALS SAID THEIR COMPANY ALSO PLANS TO CONTINUE WRITING DOWN ITS LATENT LOSSES ON TOKKIN FUNDS AND SHRINKING THE SCALE OF SUCH FUNDS BUT HOW AGGRESSIVELY IT DOES SO IN THE REST OF THE CURRENT FISCAL YEAR WILL DEPEND ON PRICE MOVEMENTS ON JAPANESE STOCK EXCHANGES THE COMPANY HAS 1781 BILLION YEN IN SUCH ACCOUNTS 77 BILLION YEN LESS THAN A YEAR EARLIER OFFICIALS SAID MITSUBISHI ALSO SAID IT HAS ROUGHLY 151 BILLION YEN IN THE TRUST FUNDS AS OPPOSED TO THE 1788 BILLION YEN IT HAD AT THE END OF MARCH 1993 9311190156 931119 PETROLEUM DEVELOPMENT SHARES BRIDGEPORT WVA PETROLEUM DEVELOPMENT CORP SAID IT BOUGHT BACK 19 MILLION SHARES OF ITS COMMON STOCK FROM CHEMICAL BANK A UNIT OF CHEMICAL BANKING CORP NEW YORK FOR ABOUT 150 PER SHARE THE OIL AND NATURALGAS CONCERN SAID IT FINANCED THE REPURCHASE THROUGH USE OF PART OF A NEW 75 MILLION CREDIT FACILITY EXTENDED TO IT BY NBD BANK A UNIT OF NBD BANCORP THE COMPANY SAID IT ALSO PAID OFF ITS REMAINING DEBT OBLIGATION TO CHEMICAL BANK ADDITIONALLY PETROLEUM DEVELOPMENT SAID IT WILL REPORT A ONETIME GAIN OF 360000 IN THE FOURTH QUARTER RESULTING FROM THE EARLY REPAYMENT OF THE CHEMICAL BANK LOAN ON THE NASDAQ STOCK MARKET PETROLEUM DEVELOPMENT CLOSED AT 18125 DOWN 125 CENTS 9311190155 931119 ORNDA TO ACQUIRE HEALTHCARE FIRM FOR 400 MILLION BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL NASHVILLE TENN ORNDA HEALTHCORP SAID IT AGREED TO ACQUIRE AMERICAN HEALTHCARE MANAGEMENT INC IN A TRANSACTION VALUED AT ABOUT 400 MILLION ORNDA A HOSPITAL CHAIN SAID AMERICAN HEALTHCARE SHAREHOLDERS WILL RECEIVE 06 OF A SHARE OF ORNDA COMMON STOCK IN EXCHANGE FOR EACH SHARE OF AMERICAN HEALTHCARE ORNDA WILL ALSO ASSUME ABOUT 160 MILLION IN DEBT THE TRANSACTION WILL INCREASE ORNDA'S NUMBER OF COMMON SHARES OUTSTANDING TO 35 MILLION FROM ABOUT 18 MILLION AMERICAN HEALTHCARE HAS ABOUT 28 MILLION SHARES OUTSTANDING THE TRANSACTION IS EXPECTED TO BE ACCOUNTED FOR AS A POOLINGOFINTERESTS NEWS OF THE PLANNED ACQUISITION WAS ANNOUNCED AFTER MARKETS CLOSED YESTERDAY IN TRADING ON THE NASDAQ STOCK MARKET ORNDA CLOSED AT 14125 DOWN 375 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMERICAN HEALTHCARE CLOSED AT 7 UP 375 CENTS OR 57 THE ACQUISITION MARKS THE LATEST EFFORT AT CONSOLIDATION WITHIN THE HEALTHCARE INDUSTRY WHERE COMPANIES ARE RUSHING TO MEET DEMANDS FOR COSTEFFECTIVE CARE EACH MOVE BRINGS THE INDUSTRY CLOSER TO PRESIDENT CLINTON'S VISION OF A HEALTHCARE MARKET DOMINATED BY HUGE REGIONAL ALLIANCES PURCHASING CARE FOR HUNDREDS OF THOUSANDS OF CONSUMERS IN THEORY THOSE ALLIANCES WILL STRIKE DEALS WITH A FEW LARGE MEDICAL PROVIDERS AS OPPOSED TO NUMEROUS INDEPENDENT HOSPITALS AND CLINICS AMERICAN HEALTHCARE BASED IN KING OF PRUSSIA PA OPERATES 16 ACUTECARE HOSPITALS IN NINE STATES ORNDA OWNS AND OPERATES 18 ACUTECARE HOSPITALS AS WELL AS TWO PSYCHIATRIC HOSPITALS THE ACQUISITION WOULD CREATE THE FIFTHLARGEST INVESTOROWNED HOSPITAL MANAGEMENT COMPANY IN THE COUNTRY SAID A SPOKESMAN FOR ORNDA CHARLES N MARTIN ORNDA'S CHIEF EXECUTIVE OFFICER WILL ASSUME THE POSITION OF CHAIRMAN AND CHIEF EXECUTIVE OF THE NEW COMPANY WHICH WILL CONTINUE TO MAINTAIN CORPORATE OPERATIONS IN BOTH NASHVILLE AND KING OF PRUSSIA STEVEN L VOLLA AMERICAN HEALTHCARE'S CHIEF EXECUTIVE WILL BECOME PRESIDENT OF THE NEW COMPANY ACCORDING TO ANOTHER ORNDA SPOKESMAN THE NEW COMPANY WILL RETAIN THE ORNDA NAME 9311190154 931119 DISPLACED PASSENGERS COULD BE LEFT AT GATE IF STRIKE CONTINUES IF YOU HAVE AN AMERICAN AIRLINES TICKET WHAT SHOULD YOU DO MOST PASSENGERS DISCOVERED YESTERDAY THAT EVEN IF THEIR FLIGHT WAS CANCELED THEY STILL EVENTUALLY GOT TO THEIR FINAL DESTINATION THAT'S BECAUSE ALL MAJOR AIRLINES ARE HONORING AMERICAN TICKETS MORE SERIOUS PROBLEMS HOWEVER WILL ARISE IF THE STRIKE CONTINUES NEXT WEEK AMID THE USUAL CRUSH OF THANKSGIVING TRAFFIC PASSENGERS WHO ARE SCHEDULED TO FLY ON AMERICAN DURING THE HOLIDAY WEEK SHOULD CONSIDER REBOOKING ON ANOTHER FLIGHT OR MAKING A BACKUP RESERVATION AMERICAN'S DISPLACED FLIERS CAN ONLY BOARD OTHER CARRIERS IF SPACE IS AVAILABLE BECAUSE THE AMR CORP UNIT ACCOUNTS FOR ABOUT 20 OF ALL US PASSENGERS THE INDUSTRY COULD FACE A RARE PROBLEM NEXT WEEK MORE FLIERS THAN AVAILABLE SEATSAND AMERICAN TICKETHOLDERS WILL BE THE ONES LEFT STANDING AMERICAN PASSENGERS WHO HAVE A REFUNDABLE FULLFARE OR FIRSTCLASS TICKET CAN BOOK AND THEN TAKE A BACKUP FLIGHT WITHOUT ANY PENALTY DOUBLEBOOKING IS STANDARD WITH BUSINESS TRAVELERS THESE PASSENGERS ALSO RECEIVE PREFERRED TREATMENT FROM OTHER AIRLINES WHO WILL BOOK THEM IMMEDIATELY IF THEY HAVE THE SPACE BUT AMERICAN CUSTOMERS WITH NONREFUNDABLE DISCOUNT TICKETS CAN FLY OTHER AIRLINES ONLY ON A STANDBY BASIS THE OTHER CARRIERS WON'T HONOR DISCOUNT SEATS UNTIL THEY KNOW THEY CAN'T SELL THEM TO THEIR OWN CUSTOMERS AT A HIGHER PRICE DISCOUNT FLIERS WHO DON'T WANT TO RISK BEING STRANDED DURING THANKSGIVING WEEK CAN REBOOK ON ANOTHER CARRIER THEN USE THE VALUE OF THE UNUSED AMERICAN TICKET FOR A FUTURE TRIP AMERICAN HOWEVER CHARGES A FEE OF UNDER 50 FOR THAT NEW TICKET FINALLY AMERICAN TRAVELERS CANNOT USE A FREQUENTFLIER TICKET ON ANOTHER CARRIER ALTHOUGH THEY WILL RECEIVE FREQUENTFLIER MILES WITH AMERICAN 9311190153 931119 CAMELOT'S ENTERTAINMENT UNIT DALLAS CAMELOT CORP SAID ITS CAMELOT ENTERTAINMENT INC UNIT HAS ENTERED INTO AN AGREEMENT WITH AN EDUCATIONAL COMPUTERSOFTWARE COMPANY TO CUSTOM DESIGN A LINE OF CHILDREN'S EDUCATIONAL SOFTWARE TO BE MARKETED UNDER CAMELOT'S PROFESSOR NOZALL BRAND NAME THE SOFTWARE COMPANY WASN'T NAMED CAMELOT ENTERTAINMENT WILL START OUT WITH 15 TITLES FOR MSDOS AND WINDOWS THAT WILL COVER ENGLISH GRAMMAR ENGLISH VOCABULARY SCIENCE US GEOGRAPHY WORLD GEOGRAPHY US HISTORY WORLD HISTORY AND MATHEMATICS THE PROGRAMS ARE AIMED AT CHILDREN IN GRADES ONE THROUGH EIGHT CAMELOT HAS OPERATIONS IN VIDEO AND COMPUTERSOFTWARE MARKETING FINANCIAL SERVICES AND ENERGY 9311190152 931119 DRESSER EXPECTS HIGHER PROFIT DALLAS DRESSER INDUSTRIES INC SAID IT EXPECTS TO REPORT NET INCOME OF 45 CENTS TO 47 CENTS A SHARE FOR ITS FOURTH QUARTER ENDED OCT 31 FOR THE 1992 QUARTER THE OILFIELD SERVICE COMPANY POSTED A LOSS OF 45 MILLION OR THREE CENTS A SHARE ON REVENUE OF 101 BILLION CHAIRMAN JOHN J MURPHY SAID THE IMPROVEMENT IN EARNINGS RESULTS COMES FROM STRONG SHOWINGS BY THE COMPANY'S DRESSERRAND JOINT VENTURE AND OILFIELD SERVICES BUSINESSES AND AN INCOMETAX BENEFIT RELATED TO THE NEW TAX LAW 9311190151 931119 WHO'S NEWS DUPONT CORP DUPONT CORP WILMINGTON DEL JOSEPH A MILLER JR 31 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT RESEARCH AND DEVELOPMENT OF THIS CHEMICAL CONCERN MR MILLER CURRENTLY VICE PRESIDENT SCIENCE AND ENGINEERING LABOARATORY DUPONT CENTRAL RESEARCH AND DEVELOPMENT SUCCEEDS ALEXANDER MACLACHLAN WHO IS RETIRING EFFECTIVE DEC 31 9311190150 931119 DIVIDEND NEWS BENEFICIAL CORP BENEFICIAL CORP'S BOARD APPROVED A 2FOR1 STOCK SPLIT AND RAISED ITS QUARTERLY DIVIDEND TO 76 CENTS A SHARE FROM 70 CENTS ON A PRESPLIT BASIS FOR BOTH THE SPLIT AND THE DIVIDEND THE RECORD DATE WILL BE DEC 1 NEW STOCK CERTIFICATES WILL BE DISTRIBUTED DEC 15 THE DIVIDEND WILL BE PAID DEC 30 FOLLOWING THE SPLIT THE COMPANY WILL PAY A QUARTERLY DIVIDEND OF 38 CENTS BENEFICIAL IS A FINANCIAL SERVICES HOLDING COMPANY BASED IN WILMINGTON DEL 9311190149 931119 FINANCING BUSINESS HERSHEY FOODS CORP HERSHEY FOODS CORP HERSHEY PA SAID IT FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER UP TO 400 MILLION OF DEBT SECURITIES HERSHEY SAID NET PROCEEDS WOULD BE USED TO MEET CAPITALEXPENDITURE AND WORKINGCAPITAL REQUIREMENTS REFUND OUTSTANDING DEBT REPURCHASE SHARES OR MAKE ACQUISITIONS THE MAKER OF CHOCOLATE CANDY AND PASTA PRODUCTS SAID IT HAS 100 MILLION OUTSTANDING FROM A SHELF REGISTRATION FILED JUNE 1990 9311190148 931119 MARKETING & MEDIA CAMPBELL SOUP CO POSTS RECORD PROFIT FOR FIRST QUARTER BY NEELA BANERJEE AND GAUTAM NAIK STAFF REPORTERS OF THE WALL STREET JOURNAL CHERRY HILL NJ CAMPBELL SOUP CO REPORTED RECORD SALES AND EARNINGS FOR THE FISCAL FIRST QUARTER AND SAID IT WOULD INCREASE ITS QUARTERLY DIVIDEND BY 12 REFLECTING ITS STRONG PERFORMANCE IN FISCAL 1993 THE MAKER OF SOUPS AND OTHER FOOD PRODUCTS SAID NET INCOME FOR THE QUARTER ENDED OCT 31 WAS 1664 MILLION OR 66 CENTS A SHARE A YEAR EARLIER THE COMPANY HAD A LOSS OF 972 MILLION OR 39 CENTS A SHARE WHICH INCLUDED A CHARGE OF 249 MILLION FOR ACCOUNTING CHANGES THE COMPANY NOTED THAT OPERATING RESULTS FOR ITS US BUSINESSES WERE EXCEPTIONALLY STRONG A YEAR EARLIER BECAUSE OF AN 8 JUMP IN SOUP VOLUME SALES IN THE LATEST QUARTER ROSE 4 TO 176 BILLION FROM 170 BILLION THE COMPANY SAID IT WILL INCREASE ITS DIVIDEND TO 28 CENTS A SHARE FROM 25 CENTS PAYABLE ON JAN 31 FOR SHARES OF RECORD JAN 7 CAMPBELL'S BISCUIT AND BAKERY OPERATIONS REPORTED THE STRONGEST INCREASE IN SALES AND PROFIT PRIMARILY AS A RESULT OF CAMPBELL'S ACQUISITION IN FEBRUARY OF A MAJORITY OWNERSHIP IN ARNOTTS LTD IN AUSTRALIA SALES FOR THE OPERATIONS ROSE 48 TO 3296 MILLION FROM 2223 MILLION WHILE OPERATING EARNINGS ALMOST DOUBLED TO 385 MILLION FROM 196 MILLION CAMPBELL USA HOWEVER SAW ITS SALES DECLINE 3 TO 107 BILLION FROM 11 BILLION US RESULTS REFLECTED PERSISTENT LOW CONSUMER CONFIDENCE AND SLUGGISH GROCERY STORE SALES CAMPBELL SAID THE COMPANY SAID IT HAS BOOSTED ITS MARKETING EFFORTS INCLUDING AN AGGRESSIVE NEW SOUP ADVERTISING CAMPAIGN TO INCREASE PERCAPITA CONSUMPTION CAMPBELL INTERNATIONAL'S SALES FELL 1 TO 3814 MILLION FROM 3868 BEFORE CURRENCY FLUCTUATIONS HOWEVER SALES ROSE 9 THE COMPANY SAID AT THE COMPANY'S ANNUAL SHAREHOLDERS MEETING DAVID W JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OUTLINED A PLAN TO STRENGTHEN THE COMPANY'S POSITION IN MARKETS WORLDWIDE MR JOHNSON SAID THE COMPANY WOULD FOCUS ON ITS CORE BUSINESSES AND RECONFIGURE ITS PORTFOLIO WHICH MEANS SHUTTING DOWN AND SELLING UNPROFITABLE AND NONSTRATEGIC UNITS THE COMPANY ANNOUNCED THE DIVESTITURE PLAN IN FEBRUARY AND TOOK A 300 MILLION RESTRUCTURING CHARGE IN THE FISCAL THIRD QUARTER ENDED MAY 2 ALREADY THE COMPANY HAS SOLD TWO FROZENFOOD PLANTS IN THE US AND TWO BUSINESSES IN FRANCE AND MEXICO FOLLOWING THE MEETING ROBERT J VLASIC 67 YEARS OLD RETIRED AS THE COMPANY'S CHAIRMAN AND BECAME CHAIRMAN EMERITUS MR JOHNSON 61 SUCCEEDED MR VLASIC 9311190147 931119 WHO'S NEWS NEOLENS INC NEOLENS INC MIAMI DON H ROTENBERG WAS ELECTED TO THE BOARD OF THIS EYEGLASSLENSE MAKER INCREASING THE NUMBER OF DIRECTORS TO FOUR DR ROTENBERG WAS ALSO NAMED VICE PRESIDENT OF RESEARCH AND DEVELOPMENT HIS PREVIOUS JOBS HAVE BEEN RESEARCH AND DEVELOPMENT POSITIONS WITH OTHER CONCERNS IN THE OPTICAL INDUSTRY 9311190146 931119 HORSHAM RAISES SOME 550 MILLION WITH DEBENTURES BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO HORSHAM CORP SAID IT HAS RAISED 550 MILLION THROUGH AN ISSUE OF CONVERTIBLE DEBENTURES BRINGING TO 750 MILLION THE SIZE OF ITS ACQUISITION WAR CHEST THE FUNDS WILL ALLOW HORSHAM TO PURSUE ITS GOAL OF FURTHER DIVERSIFYING ITS ASSETS THE TORONTOBASED HOLDING COMPANY SAID CURRENTLY HORSHAM HAS A 20 STAKE IN AMERICAN BARRICK RESOURCES CORP AND OWNS CLARK REFINING & MARKETING INC OF ST LOUIS IT ALSO OWNS A PROPERTY DEVELOPMENT COMPANY IN GERMANY VINCE BORG SPOKESMAN FOR HORSHAM SAID THE ONLY TYPE OF ACQUISITION HORSHAM HAS RULED OUT IS ANOTHER GOLDMINING CONCERN OTHERWISE HE NOTED WE'RE NOT LIMITED EITHER BY GEOGRAPHY OR INDUSTRY WE'RE ON THE HUNT MR BORG DID NOTE THAT HORSHAM IS A LITTLE MORE COMFORTABLE WITH INVESTMENTS IN THE NATURAL RESOURCES SECTOR AND THAT THE COMPANY WON'T SEEK TO EXPAND ITS REALESTATE OPERATIONS TO ACCESS LOWCOST FUNDS HORSHAM OPTED TO ISSUE DEBENTURES WHICH ARE CONVERTIBLE INTO SHARES OF AMERICAN BARRICK AFTER FIVE YEARS HORSHAM CAN CHOOSE TO REDEEM THE DEBENTURES FOR SHARES OR FOR CASH THE NUMBER OF AMERICAN BARRICK SHARES RECEIVED IN RETURN FOR EACH 1000 PRINCIPAL AMOUNT OF DEBENTURES WOULD VARY FROM 324675 TO 357143 DEPENDING ON THE MARKET VALUE OF THE SHARES HORSHAM SAID IT IS PUTTING 1964 MILLION COMMON SHARES OF AMERICAN BARRICK ROUGHLY ONETHIRD OF ITS STAKE IN THE COMPANY IN TRUST IT WILL CONTINUE TO EXERCISE VOTING RIGHTS AND COLLECT ANY DIVIDENDS ON THE SHARES MR BORG SAID THIS IS CONSISTENT WITH HORSHAM'S LONGSTANDING POLICY OF USING ITS CORE HOLDINGS TO PURSUE DIVERSIFICATION MR BORG SAID OF THE CONVERTIBLE ISSUE WHAT KIND OF RATE WOULD YOU BE ABLE TO GET ON HORSHAM DEBENTURES NO QUESTION IT WOULD BE HIGHER THE ISSUE OF 35 25YEAR DEBENTURES WAS PRICED AT PAR LEAD UNDERWRITER FOR THE ISSUE WAS RBC DOMINION SECURITIES LTD A TORONTO INVESTMENT DEALER WHICH PURCHASED THE DEBENTURES FOR RESALE TO THE PUBLIC THE DEBENTURES AREN'T REGISTERED IN THE UNITED STATES AND WON'T BE SOLD TO US INVESTORS MR BORG SAID IT MAY TAKE ANYWHERE FROM SIX MONTHS TO 18 MONTHS TO LOCATE A SUITABLE ACQUISITION OPPORTUNITY HE NOTED THAT HORSHAM HAS ESTABLISHED AN EXECUTIVE TEAM TO SCOUT NEW OPPORTUNITIES NOW THAT CLARK APPEARS TO HAVE TURNED THE CORNER AND ITS GERMAN REAL ESTATE ASSETS HAVE BECOME FINANCIALLY SELFSUSTAINING 9311190145 931119 NAFTA THE ROAD AHEAD MEXICAN CITY PONDERS TRADE TEALEAVES BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL AGUASCALIENTES MEXICO AGUASCALIENTES IS A HISTORICAL ACCIDENT IT'S A SPRAWLING CITY OF 500000 THAT ROSE OUT OF THE DESERT BECAUSE MEXICO'S NORTHSOUTH AND EASTWEST TRAIN LINES HAPPENED TO CROSS HERE AMID THE DUST AND THE SCRUB A HUNDRED YEARS AGO BUT THE ACCIDENT THAT MADE AGUASCALIENTES A REGIONAL TRANSPORTATION CENTER PROVIDES A LOOK INTO THE FUTURE OF ALL OF MEXICO WHILE MUCH OF MEXICO HAS BEEN SLOWLY MOVING TOWARD THE BRAVE NEW WORLD OF FREER TRADE WITH THE POWERFUL NEIGHBOR TO THE NORTH AGUASCALIENTES HAS BEEN ON FAST FORWARD NOW THAT THE NORTH AMERICAN FREE TRADE AGREEMENT IS SURE TO BE APPROVED THE REST OF MEXICO IS GOING TO HAVE TO GO THROUGH THE PROMISING BUT WRENCHING TRANSITION OCCURRING IN AGUASCALIENTES JOSE ARTEAGA IS A SYMBOL OF THAT TRANSITION HE BEGAN FARMING A SMALL PLOT OF LAND WITH MULES 35 YEARS AGO BUT HIS FAMILY NOW FARMS NEARLY 2000 ACRES AND OPERATES A HIGHLY AUTOMATED FACILITY THAT EXPORTS 20 MILLION OF FROZEN VEGETABLES TO THE US EACH YEAR STILL MR ARTEAGA KNOWS THAT HE'S NOT THROUGH WITH CHANGE YET MR ARTEAGA SAYS HE THOUGHT HE WAS BEING ADVENTURESOME WHEN HE RECENTLY DECIDED TO BUY A SINGLE 150000 BEAN HARVESTER THEN A SON TOLD HIM HE HAD RECENTLY VISITED A FARMER IN FLORIDA WHO HAD 37 MR ARTEAGA WORRIES BECAUSE HE NEEDS TO DRILL WELLS 400 FEET DEEP TO FIND WATER HERE THEN HE HAS TO PAY ELECTRICITY COSTS ABOUT TWICE AS HIGH AS THOSE IN THE US TO PUMP THE WATER AND IRRIGATE THE FIELDS THAT HE AND HIS FIVE SONS FARM THE SOFTSPOKEN MR ARTEAGA'S EYES OPEN WIDE AS HE SAYS THAT THE BEANGROWER IN FLORIDA ONLY HAD TO DIG THREE FEET INTO THE GROUND TO FIND WATER PLACES IN THE NORTHWEST DON'T NEED TO IRRIGATE AT ALL MR ARTEAGA ADDS SEARCHING FOR WATER HAS ALREADY MEANT ONE MOVE TO GET FARTHER AWAY FROM THE SPREADING CITY AND IT MAY MEAN ANOTHER THE FAMILY HAS BEGUN RENTING LAND TO THE NORTH WHERE HIGHER ALTITUDES PROVIDE COOLER TEMPERATURES AND GREATER MOISTURE AND EVEN WHILE SITTING IN THE MIDDLE OF THE FAMILY COMPOUND THAT CLUSTERS THE PARENTS' AND CHILDREN'S HOMES TOGETHER MR ARTEAGA SAYS HE'LL MOVE THE WHOLE OPERATION NORTH IF HE MUST THAT WOULD THROW MANY OF HIS 1100 EMPLOYEES OUT OF WORK BECAUSE FEW WOULD MOVE NORTH WITH HIM EVEN SHORT OF A MOVE THE PURCHASE OF THE HARVESTER WILL TAKE OVER THE WORK OF 100 OF THE WOMEN WHO PICK THE BEANS FOR 40 A WEEK NAFTA SHOULD HELP VEGETABLE FARMERS LIKE MR ARTEAGA EXPORT MORE TO THE US BUT HE ISN'T EVEN SURE HE'LL SEE ALL THE BENEFITS OF THE LOWER DUTIES HE SAYS HE RECENTLY GOT A REQUEST FOR 220000 POUNDS OF ZUCCHINI BUT THE PROPOSAL FROM THE US BUYER REQUIRED THAT IT NOT MR ARTEAGA GET ANY SAVINGS FROM LOWERED EXPORT DUTIES THEY WANT THE MONEY AND WE WANT THE MONEY MR ARTEAGA SAYS WITH A SILENT CHUCKLE WE'RE STILL THINKING ABOUT THAT ONE THE STATE OF AGUASCALIENTES WHOSE GOVERNMENT IS BASED IN THE CITY OF THE SAME NAME HAS BEEN INCREASING THE PRESSURES ON FARMERS BY MAKING IT HARDER FOR THEM TO GET WATER AS WITH MUCH OF MEXICO IN THE 1970S FARMING ACCOUNTED FOR 60 OF THE STATE'S ECONOMY COMPARED WITH ABOUT 3 IN THE US BUT FARMING HAS NOW SLIPPED TO 8 OF THE ECONOMY IN AGUASCALIENTES AND THE STATE WILL MAKE SURE THAT PERCENTAGE KEEPS FALLING BECAUSE FARMING STILL USES UP 85 OF THE STATE'S SCARCE WATER AT THE SAME TIME COMPETITIVE PRESSURES ARE MAKING JOBS DISAPPEAR IN OTHER PARTS OF THE ECONOMY ESPECIALLY IN TEXTILES AUTOMATION HAS HELPED CUT 18 OF THE JOBS IN THE TEXTILE INDUSTRY IN THE STATE OF AGUASCALIENTES JUST OVER THE PAST YEAR AUTOMATION WILL MAKE MANY MORE VANISH IN COMING MONTHS AND YEARS BECAUSE COMPANIES NEED TO BECOME MORE EFFICIENT AND ONLY 5 OF THE STATE'S TEXTILE JOBS CURRENTLY INVOLVE ANYTHING MORE SOPHISTICATED THAN AN OLD SEWING MACHINE UNDER OTTO GRANADOS ROLDAN AN AGGRESSIVE YOUNG GOVERNOR WHO USED TO BE A CLOSE AIDE TO PRESIDENT CARLOS SALINAS DE GORTARI THE STATE HAS TRIED TO HELP DISPLACED WORKERS THROUGH TRAINING PROGRAMS AND A BROAD PROGRAM TO ATTRACT INVESTMENT THE STATE HAS DONE WELL IT HAS ATTRACTED 270 TRADE MISSIONS IN THE PAST 11 MONTHS AND MANY OF THOSE HAVE DECIDED TO SET UP SHOP HERE FOR INSTANCE NISSAN MOTOR CO RECENTLY EXPANDED ITS AUTO PLANT HERE IT HAS INSISTED THAT 10 TO 20 OF ITS SUPPLIERS BUILD OPERATIONS IN THE AREA TO MAKE IT EASIER FOR NISSAN TO GET SUPPLIES ON SHORT NOTICE THROUGH THE INVESTMENT PUSH AGUASCALIENTES HAS MOVED TO EXPORTING AN ESTIMATED 1 BILLION OF PRODUCTS THIS YEAR UP FROM 12 MILLION IN 1980 AS A RESULT THE STATE HAS KEPT UNEMPLOYMENT A BIT BELOW THE NATIONAL AVERAGE OF 36 IN ADDITION COMPANIES HAVE MAINTAINED THE GOOD RELATIONS WITH LABOR THAT HAVE LONG MADE AGUASCALIENTES STAND OUT IN MEXICO AND GOV GRANADOS THINKS THE STATE CAN GROW FASTER THAN THE REST OF MEXICO OVER THE LONG TERM STILL INTEREST RATES ARE SO HIGH THAT COMPANIES HAVE LITTLE MARGIN FOR ERROR AS THEY TRY TO BECOME MORE EFFICIENT AND DEAL WITH THE OPENING OF THE MEXICAN ECONOMY THAT HAS COME TO BE KNOWN AS SALINISMO MIGUEL ANGEL GOMEZ BARNOLA FOUND THAT OUT THE HARD WAY WHEN HE BOUGHT A SMALL BUSINESS THAT PRINTS CARTONS MR GOMEZ WHO HAS A BUSINESS MASTER'S DEGREE FROM MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S SLOANE SCHOOL FOLLOWS ALL THE US MANAGEMENT DOGMA TO THE POINT OF HAVING A HUGE SIGN ON THE FRONT OF HIS IMMACULATE BUILDING THAT SAYS TOTAL QUALITY AND JUST IN TIME HE ABANDONED AN OUTDATED FACTORY IN MEXICO CITY AND MOVED HERE BUYING STATEOFTHEART EQUIPMENT THAT MAKES HIS WORKERS EIGHT TIMES AS PRODUCTIVE AS THEY HAD BEEN BUT THE ONLY SHORTTERM CREDIT HE COULD LINE UP CARRIED A 34 INTEREST RATE WHEN DELAYS IN CONSTRUCTION MEANT THAT HE WASN'T GENERATING ANY REVENUE BY THE TIME HE HAD TO MAKE HIS FIRST BIG INTEREST PAYMENT HE HAD TO THROW HIMSELF ON THE MERCY OF THE BANKS TO TRY TO RENEGOTIATE THE LOANS AND SURVIVE IT'S CRAZY HE SAYS IT'S LIKE WE'RE ALL WORKING FOR THE BANKS SOME COMPANIES HAVE ALREADY MADE ENOUGH MISTAKES THAT THEY SEEM TO BE SET FOR THE FUTURE BORDADOS MATY SA A MAKER OF BABY CLOTHES TRIED TO DESIGN CLOTHES IN MEXICO FOR THE US MARKET BEFORE REALIZING THAT US TASTES DIFFERED TOO GREATLY BUT NOW THE COMPANY WHICH STARTED AS A SHOP FOR BABY CLOTHES AND WHICH HAD ITS BIGGEST FACTORY GROW UP AROUND THE FOUNDER'S HOME SELLS MORE THAN 15 MILLION OF USDESIGNED GOODS ANNUALLY NORTH OF THE BORDER THE COMPANY IS SO FOCUSED ON EXPORTS THAT SENIOR EXECUTIVE ESTEBAN GONZALEZ AGUILAR HAS TWO THINGS ON THE WALLS OF HIS SPARE OFFICE A MAP OF THE US AND A PICTURE OF DALLAS WHERE MATY HAS ITS US OFFICE BUT OTHER COMPANIES EVEN WITHOUT DEBT SEEM TO BE UNCERTAIN ABOUT HOW TO PROCEED AND THE PROBLEMS THEY FACE MAY CHANGE THE WAY OF LIFE IN AGUASCALIENTES JM ROMO SA FOR INSTANCE WAS FOUNDED 60 YEARS AGO IN A MACHINE SHOP AND BECAME A LOCAL FIXTURE GOVERNMENT OFFICIALS PRAISE IT AS A GOOD EMPLOYER NOTING THAT IT EVEN BUILT A LARGE AMUSEMENT PARK ACROSS THE STREET FROM ITS FACTORY FOR THE FREE USE OF ITS 1200 EMPLOYEES BUT NOW THE FOUNDER IS DEAD AND SO IS HIS SON THE COMPANY IS BEING RUN BY THE TWO GRANDSONS BOTH IN THEIR 20S WHO ACKNOWLEDGE THAT THEY'RE GOING TO FACE CONSIDERABLE COMPETITION FROM THE US HOW DOES A COMPANY THAT CONCEDES IT INEFFICIENTLY BUILDS TWO MILLION SHOPPING CARTS A YEAR TAKE ON US COMPANIES THAT BUILD 50 MILLION ANNUALLY USING THE LATEST TECHNOLOGY THE OWNERS SAY THEY HOPE TO EXPORT PRODUCTS TO THE US BUT ACKNOWLEDGE THEY HAVE ALMOST NO EXPERIENCE IN EXPORTS EVERYTHING HAS CHANGED SAYS JOHN DETMOLD CHIEF EXECUTIVE OFFICER OF SERVICIOS FINANCIEROS QUADRUM SA A LARGE LENDER IT USED TO BE THAT IF A COMPANY HAD BEEN AROUND FOR 50 YEARS IT WOULD BE AROUND FOR AT LEAST ANOTHER TWO BUT THAT'S NOT THE CASE ANY MORE 9311190144 931119 WHO'S NEWS KEITHLEY INSTRUMENTS INC KEITHLEY INSTRUMENTS INC CLEVELAND CHAIRMAN JOSEPH P KEITHLEY 45 YEARS OLD HAS ASSUMED THE CHIEF EXECUTIVE OFFICER RESPONSIBILITIES HELD BY THOMAS G BRICK EFFECTIVE IMMEDIATELY MR BRICK 58 CONTINUES AS PRESIDENT AND A DIRECTOR OF THIS MAKER OF HARDWARE AND SOFTWARE FOR TEST AND MEASUREMENT INSTRUMENTATION HE PLANS TO RETIRE SOMETIME IN 1995 THE COMPANY SAID MR KEITHLEY SAID THE COMPANY CONSIDERS THE MANAGEMENT CHANGE TO BE A FRIENDLY REORGANIZATION OF POWER 9311190142 931119 PRETAX PROFIT AT SONY RISES NINTENDO'S FALLS ANALYSTS SEE LEANER TIMES FOR VIDEOGAME FIRM SONY GAINS IN HEDGING BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO VIDEOGAME MAKER NINTENDO CO SAID PRETAX PROFIT FELL IN ITS FISCAL FIRST HALF THE FIRST SUCH DECLINE SINCE 1984 WHILE BATTERED SONY CORP REPORTED A STRONG INCREASE IN CONSOLIDATED PRETAX PROFIT FOR ITS FISCAL SECOND QUARTER DUE TO SUCCESSFUL CURRENCY HEDGING FOR THE SIX MONTHS ENDED SEPT 30 NINTENDO REPORTED A 24 DECLINE IN UNCONSOLIDATED PRETAX PROFIT TO 611 BILLION YEN 5716 MILLION FROM 8025 BILLION YEN FOR THE YEAREARLIER PERIOD SALES FELL 62 TO 26018 BILLION YEN FROM 27741 BILLION YEN SONY SAID GROUP PRETAX PROFIT FOR THE THREE MONTHS ENDED SEPT 30 ROSE 41 TO 1801 BILLION YEN FROM A YEAREARLIER 1276 BILLION YEN OF THAT PROFIT SONY SAID 1199 BILLION YEN WAS ATTRIBUTABLE TO FOREIGNEXCHANGE GAINS UP FROM 402 MILLION YEN 38 MILLION A YEAR EARLIER NINTENDO'S FALLING SALES AND PRETAX PROFIT BRING TO AN END SEVERAL YEARS OF GROWTH THAT HAS MADE THE KYOTOBASED COMPANY THE ENVY OF JAPAN'S ELECTRONICS INDUSTRY LAST YEAR NINTENDO HAD HIGHER PROFIT THAN MANY MUCH LARGER ELECTRONICS FIRMS INCLUDING SONY ANALYSTS NOW SAY NINTENDO'S FALL FROM GRACE MIGHT BE THE BEGINNING OF A YEAR OR MORE OF BAD NEWS ON THE EARNINGS FRONT EARLIER THIS MONTH NINTENDO'S CHIEF JAPANESE RIVAL SEGA ENTERPRISES LTD REPORTED SLOWER PROFIT GROWTH FOR THE FIRST HALF SUGGESTING THAT THE HOT VIDEOGAME MARKET IS COOLING OFF SONY'S RESULTS MEANWHILE AREN'T QUITE THE TURNAROUND THEY FIRST APPEAR FOR SEVERAL YEARS THE COMPANY HAS STRUGGLED WITH PRODUCT SATURATION IN ITS PRIMARY MARKET FOR AUDIOVISUAL EQUIPMENT MORE RECENTLY IT HAS SUFFERED AT THE HANDS OF THE STRONG YEN WHICH MAKES ITS PRODUCTS MORE EXPENSIVE OVERSEAS SONY OFFICIALS SAID BOTH FACTORS ARE STILL MAJOR PROBLEMS FOR THE COMPANY A FACT REFLECTED IN SONY'S OPERATING INCOME WHICH DECLINED SHARPLY OPERATING INCOME REFLECTS A COMPANY'S CORE BUSINESS ACTIVITIES SONY OPERATING INCOME FOR THE QUARTER FELL 58 TO 1219 BILLION YEN FROM 288 BILLION YEN GROUP SALES ALSO FELL TO 93844 BILLION YEN DOWN 87 FROM A YEAREARLIER 1028 TRILLION YEN 962 BILLION SONY ALSO REPORTED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED SEPT 30 PRETAX PROFIT ROSE 34 TO 5665 BILLION YEN FROM 4224 BILLION YEN ON A 95 DECLINE IN SALES TO 1767 TRILLION YEN FROM 1952 TRILLION YEN OPERATING INCOME FELL 45 TO 3749 BILLION YEN FROM A YEAREARLIER 6823 BILLION YEN NINTENDO AND SONY BOTH DEPEND HEAVILY ON EXPORTS AND THUS PUT MUCH OF THE BLAME FOR THEIR TROUBLES ON THE YEN'S 16 INCREASE IN VALUE AGAINST THE DOLLAR SINCE THE BEGINNING OF THE YEAR SONY FOR INSTANCE MADE 73 OF ITS FIRSTHALF SALES OUTSIDE JAPAN BOTH COMPANIES ALSO BLAMED AN ECONOMIC SLOWDOWN IN EUROPE FOR SALES DECLINES SIMILARLY NEITHER IS LOOKING FOR AN IMMEDIATE TURNAROUND NINTENDO IS PINNING ITS HOPES ON THE DEVELOPMENT WITH USBASED SILICON GRAPHICS INC OF A NEW VIDEOGAME MACHINE SLATED FOR RELEASE IN A HOME VERSION BY LATE 1995 UNTIL THAT TIME ANALYSTS EXPECT NINTENDO'S EARNINGS TO CONTINUE SUFFERING SINCE SALES OF ITS CURRENT HOME MACHINE HAVE PROBABLY PEAKED NEXT YEAR IS GOING TO BE BAD SAID JOSEPH OSHA AN ANALYST WITH BARING SECURITIES JAPAN LTD SONY OFFICIALS MEANWHILE SAID THEY ARE NOT PESSIMISTIC ABOUT THE FUTURE CLAIMING THAT AN EMERGING MARKET FOR MULTIMEDIA EQUIPMENT WILL PLAY TO THE COMPANY'S STRENGTHS IN VIDEO DISPLAYS AND DIGITAL TECHNOLOGY ONE OF SONY'S NEW DIRECTIONS WILL BRING IT INTO DIRECT COMPETITION WITH NINTENDO IT PLANS TO RELEASE ITS FIRST VIDEOGAME PLAYER IN LATE 1994 ONE BASED ON TECHNOLOGY SONY OFFICIALS CLAIM WILL SURPASS NINTENDO'S PROPOSED NEXTGENERATION MACHINE 9311190141 931119 NISSAN MOTOR CUTS PRODUCTION SLASHES EMPLOYEE BONUSES SPECIAL TO THE WALL STREET JOURNAL TOKYO NISSAN MOTOR CO STRUGGLING TO RETURN TO PROFITABILITY AMID THE LONG RECESSION IN JAPAN STEPPED UP CUTS IN PRODUCTION IN DECEMBER WHILE SLASHING YEAREND BONUS PAYMENTS TO SAVE COSTS A COMPANY SPOKESMAN SAID YESTERDAY UNDER THE PLAN THE AUTO MAKER WILL SHUT DOWN FOUR OF ITS FIVE CAR PLANTS AND AN ENGINE PLANT IN JAPAN ON DEC 10 AND DEC 17 THE MOVE WILL CUT PRODUCTION OF ABOUT 4000 CARS ONE OF THE FOUR PLANTS WILL BE OPEN ON ONE OF THE TWO DAYS AND A RESEARCH OPERATION WILL BE OPEN ON BOTH DAYS IN ADDITION NISSAN HAS WON AN AGREEMENT WITH ITS LABOR UNION OVER AN AVERAGE 75 OR 60000 YEN 561 CUT IN THE YEAREND BONUS PAYMENTS FROM AN AVERAGE OF 800000 YEN DECIDED IN THE SPRING THE COMPANY IS LIKELY TO SAVE ROUGHLY THREE BILLION YEN BY THE BONUS CUT THE SPOKESMAN SAID THE REDUCTION IN PRODUCTION FURTHERS A TREND THAT HAS ALARMED POLICY MAKERS WORRIED ABOUT SOFTENING EMPLOYMENT CONDITIONS NISSAN ANNOUNCED YESTERDAY THAT JAPANESE PRODUCTION OF ITS CARS FOR OCTOBER WAS DOWN 14 FROM A YEAR EARLIER TO 127323 TOYOTA MOTOR CORP ALSO REPORTED THAT ITS PRODUCTION WAS OFF 12 TO 242819 BOTH CAR MAKERS SAW THEIR UPDATED MODELS STRUGGLE AS SHARP SALES GROWTH DIDN'T LAST AFTER THE FIRST MONTH OF INTRODUCTION NISSAN'S DOMESTIC PASSENGERCAR SALES FELL BACK IN OCTOBER AFTER MARKING THE FIRST YEARONYEAR RISE IN 22 MONTHS IN SEPTEMBER SALES OF THE NEW SKYLINE MODEL WHOSE STRONG SHOWING BOOSTED OVERALL SALES IN SEPTEMBER HAVE BEEN LOSING STEAM QUICKLY A NISSAN SPOKESMAN SAID FALLING SHORT OF THE COMPANY'S MONTHLY SALES TARGET OF 8000 UNITS THE SKYLINE SOLD ONLY 7000 UNITS IN OCTOBER BESIDES THE SKYLINE MOST OTHER MODELS HAD SALES BELOW YEAREARLIER LEVELS WITH NO SIGN OF RECOVERY ANYTIME SOON THE SPOKESMAN SAID AT TOYOTA SALES OF THE UPDATED CROWN MODEL ROSE 30 FROM THE YEAR BEFORE BUT SALES FELL FOR ALL OTHER MAJOR MODELS INCLUDING OTHER UPDATED ONES A TOYOTA SPOKESMAN SAID 9311190140 931119 WHO'S NEWS CALIFORNIA'S TOP AIRPOLLUTION OFFICIAL RESIGNS AS OPPOSITION GROWS TO POLICIES BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL JANANNE SHARPLESS CALIFORNIA'S TOP AIRPOLLUTION COP HAS RESIGNED AS CHAIRWOMAN OF THE POWERFUL CALIFORNIA AIR RESOURCES BOARD APPARENTLY BECAUSE OF GROWING INDUSTRIAL OPPOSITION TO HER REGULATORY POLICIES SPECIFICALLY THE TRUCKING INDUSTRY HAD BEEN CALLING FOR HER RESIGNATION AFTER RECENT REGULATORY MOVES SENT DIESELFUEL PRICES SOARING IN CALIFORNIA AFTER MS SHARPLESS 47 YEARS OLD SUBMITTED HER LETTER OF RESIGNATION LATE WEDNESDAY GOV PETE WILSON APPOINTED HER TO THE STATE'S ENERGY COMMISSION WHERE SHE WILL BE INVOLVED WITH REGULATING CALIFORNIA'S UTILITY INDUSTRY NONETHELESS HER DEPARTURE UNDER INDUSTRIAL PRESSURE AS THE HEAD OF WHAT IS WIDELY REGARDED AS ONE OF THE TOUGHEST REGULATORY AGENCIES IN AMERICA IS MORE THAN A LITTLE STARTLING AS CHAIRWOMAN UNDER TWO REPUBLICAN ADMINISTRATIONS MS SHARPLESS HAS OVERSEEN THE IMPLEMENTATION OF SOME OF THE WORLD'S STRICTEST AIRPOLLUTION RULES AMONG THE TIGHTEST AND MOST CONTROVERSIAL IS A REQUIREMENT THAT ALL MAJOR AUTO MAKERS SELLING CARS IN CALIFORNIA MUST OFFER ZEROEMISSION VEHICLES OR ELECTRICPOWERED VEHICLES IN CALIFORNIA BY 1998 THAT RULE AND OTHER REQUIREMENTS HAVE HAD DETROIT'S BIG THREE AUTO MAKERS FIGHTING VIGOROUSLY TO KEEP OTHER STATES FROM ADOPTING THE CALIFORNIA STANDARDS THIS COMES AT A VERY AWKWARD TIME FOR US BECAUSE SHE WAS THE CHAMPION FOR THE FOUNDATION OF OUR ELECTRICCAR PROGRAM SAID DAVID FREEMAN GENERAL MANAGER OF THE SACRAMENTO MUNICIPAL UTILITY DISTRICT AND SHE IS BEING GENTLY REMOVED JUST AT THE TIME THAT THIS FIGHT IS BEGINNING TO HEAT UP IN A STATEMENT ANNOUNCING MS SHARPLESS'S NEW APPOINTMENT GOV WILSON DIDN'T MENTION THE CALLS FOR HER RESIGNATION CHIEF AMONG INDUSTRY COMPLAINTS ABOUT MS SHARPLESS WAS HER UNWILLINGNESS TO SOFTEN DIESELFUEL RULES THAT WERE CONSIDERED THE NATION'S TOUGHEST THE TRUCKING INDUSTRY COMPLAINED THAT HER CLEANFUEL REGULATIONS FORCED DIESELFUEL PRICES TO SOAR TRUCKERS ALSO REPORTED THAT THE CLEANER DIESEL FUEL DAMAGED SOME TRUCKFUEL SYSTEMS MS SHARPLESS HAD ALSO BEEN CRITICIZED FOR SIDING WITH THE FEDERAL GOVERNMENT IN A PUSH TO CREATE A CENTRALIZED 200SITE NETWORK IN CALIFORNIA FOR CHECKING AUTO EMISSIONS OPPONENTS ARGUED THE PLAN WOULD INCONVENIENCE MOTORISTS AND FORCE BUSINESSES CURRENTLY PERFORMING SIMILAR SMOG CHECKS TO LOSE BUSINESS IN HER RESIGNATION LETTER MS SHARPLESS MADE NO MENTION OF THE ISSUE I FEEL FORTUNATE FOR THE OPPORTUNITY TO LEAD SUCH A WORLDCLASS ORGANIZATION SHE SAID OF THE AIR RESOURCES BOARD 9311190139 931119 CORRECTIONS & AMPLIFICATIONS ALLIED CAPITAL LENDING CORP'S INITIAL OFFERING OF 25 MILLION COMMON SHARES WAS PRICED WEDNESDAY MORNING AT 15 EACH AND ITS SHARES CLOSED UNCHANGED THAT DAY IN NASDAQ STOCK MARKET TRADING YESTERDAY'S SMALL STOCK FOCUS COLUMN INCORRECTLY REPORTED THAT ALLIED CAPITAL CORP MADE THE OFFERING ALLIED CAPITAL LENDING IS A SUBSIDIARY OF ALLIED CAPITAL IN THE SAME ARTICLE THE HEADQUARTERS OF SECURITY SAVINGS BANK WAS INCORRECTLY STATED AS JACKSON MISS IT IS BASED IN JACKSON MICH 9311190138 931119 COMMODITIES COFFEE PRICES INCREASE AS BRAZIL MAKES PROGRESS TOWARD ADHERING TO EXPORTLIMITING ACCORD BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COFFEEFUTURES PRICES ROSE SHARPLY AS BRAZIL MADE STEADY PROGRESS TOWARD FULFILLING ITS COMMITMENTS UNDER AN EXPORTLIMITING AGREEMENT AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MARCH DELIVERY ROSE 290 CENTS TO 8105 CENTS A POUND WIDESPREAD SKEPTICISM HAS ATTENDED THE EXPORTLIMITING AGREEMENT AMONG LATIN AMERICAN AND AFRICAN COFFEE PRODUCERS THESE PRODUCERS HAVE BANDED TOGETHER TO WITHHOLD 20 OF THEIR MONTHLY COFFEE EXPORTS WHENEVER PRICES RISE ABOVE 80 CENTS A POUND AS A MONTHLY MOVING AVERAGE YESTERDAY BRAZIL BOUGHT AN ADDITIONAL 36750 BAGS OF COFFEE AT AUCTION AND SAID IT PLANNED TO WITHHOLD THE COFFEE FROM WORLD MARKETS THE PURCHASE BROUGHT BRAZIL'S TOTAL PURCHASES THIS MONTH UNDER THE EXPORTLIMITING AGREEMENT TO 113250 BAGS PAST THE HALFWAY POINT OF ITS TARGET OF 200000 BAGS FOR THE MONTH OF NOVEMBER THE SIZE OF THE PURCHASES WAS NOT THAT IMPRESSIVE BUT THEY ARE BIDDING MORE AGGRESSIVELY FOR THE COFFEE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THEY SEEM TO BE WILLING TO BID HIGHER BRAZIL'S ADHERENCE TO THE EXPORTLIMITING AGREEMENT IS VITAL BECAUSE BRAZIL IS THE WORLD'S BIGGEST COFFEEPRODUCING NATION THE COUNTRY HAD BEEN SCHEDULED TO COMPLETE ITS PURCHASES OF COFFEE UNDER THE AGREEMENT BY NOV 15 AND PRICES FELL LAST WEEK WHEN BRAZIL FAILED TO DO SO YESTERDAY HOWEVER NEWS OF THE NEW PURCHASES PUSHED PRICES HIGHER AND FORCED MANY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY TO LIQUIDATE SHORT POSITIONS OR WAGERS THAT COFFEE PRICES WOULD DECLINE LARGELY BECAUSE OF THIS LIQUIDATION PRICES ROSE ABOVE THE 80CENTAPOUND LEVEL WHICH TRIGGERED A NEW WAVE OF BUYING OF FUTURES CONTRACTS BY INVESTORS WHO HAD MADE PREARRANGED ORDERS TO BUY AT THAT LEVEL ANALYSTS SAID THE MARKET SHRUGGED OFF A REPORT THAT COLOMBIA'S COFFEE CROP WOULD BE LARGER THAN USUAL THIS YEAR WHICH NORMALLY WOULD HAVE BEEN EXPECTED TO PUSH PRICES DOWN SAID BERNARD SAVAIKO COFFEE ANALYST FOR PAINEWEBBER INC IF THE EXPORTLIMITING AGREEMENT HOLDS MANY ANALYSTS EXPECT COFFEEFUTURES PRICES TO CONTINUE TO RISE ON AND OFF FOR THE NEXT FEW WEEKS IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS PRICES OF CORNFUTURES CONTRACTS SETTLED MIXED AMID PROFITTAKING GRAIN PRICES HAD RISEN DURING THE WEDNESDAY SESSION IN ANTICIPATION OF THE US HOUSE OF REPRESENTATIVES APPROVING THE NORTH AMERICAN FREE TRADE AGREEMENT SOME GRAIN TRADERS ARE SPECULATING THAT THE TRADE PACT WHICH IS DESIGNED TO LOWER TRADE TARIFFS WOULD INCREASE US CORN EXPORTS TO MEXICO NEXT YEAR BY ABOUT ONE MILLION METRIC TONS LAST YEAR MEXICO IMPORTED ABOUT 11 MILLION METRIC TONS OF CORN AMONG OTHER THINGS NAFTA INITIALLY ALLOWS THE US TO EXPORT 25 MILLION METRIC TONS OF DUTYFREE CORN TO MEXICO THE QUOTA IS SCHEDULED TO EXPAND BY 3 ANNUALLY ONE METRIC TON OF CORN IS 394 BUSHELS IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE CORN CONTRACT FOR DECEMBER DELIVERY SLIPPED 075 CENTS A BUSHEL TO SETTLE AT 2875 A BUSHEL BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL SAID CORN PRICES APPEAR TO BE TRYING TO SETTLE INTO A TRADING RANGE AFTER ROCKETING HIGHER OVER THE PAST FEW WEEKS CORN PRICES SOARED AFTER THE AGRICULTURE DEPARTMENT ESTIMATED EARLIER THIS MONTH THAT THE RAINRELATED SUMMER CROP DISASTER IN THE MIDWEST CUT THE SIZE OF THE US CORN CROP BY 31 TO 65 BILLION BUSHELS FROM LAST YEAR CORN PRICES WERE RESTRAINED YESTERDAY BY CONTINUING SPECULATION THAT THE RALLY HAS BEEN NEARLY ENOUGH TO TRIGGER THE RELEASE OF THE 159 MILLION BUSHELS OF CORN HELD IN A GOVERNMENT RESERVE PROGRAM ENERGY PETROLEUM FUTURES FELL YESTERDAY AS TRADERS TOOK PROFITS FROM WEDNESDAY'S RUNUP CRUDE OIL FOR DECEMBER DELIVERY SETTLED 35 CENTS A BARREL LOWER AT 1669 ON THE NEW YORK MERCANTILE EXCHANGE SOME VOLATILITY WAS ATTRIBUTED TO TODAY'S EXPIRATION OF THE DECEMBER CONTRACT BUT JANUARY CRUDE ALSO WAS DOWN FALLING 32 CENTS TO 1710 A BARREL THE DECLINES ERASED MOST OF THE GAINS FROM WEDNESDAY WHEN PRICES RALLIED SHARPLY ON REPORTS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PLANNED PRODUCTION CUTS TO STRENGTHEN THE OIL MARKET THERE WAS LITTLE FURTHER SUCH NEWS YESTERDAY TO PROP UP PRICES ALTHOUGH THE FOCUS OF TRADERS STILL IS ON THE OPEC MEETING WHICH BEGINS TUESDAY IN VIENNA ACCORDING TO DOW JONES INTERNATIONAL PETROLEUM REPORT TRADERS YESTERDAY PAID LITTLE ATTENTION TO POLITICAL TENSIONS IN NIGERIA WHERE OIL CONTINUED TO FLOW DESPITE THE OPEC MEMBER'S CHANGE IN GOVERNMENT WHICH RETURNED THE MILITARY DIRECTLY TO POWER 9311190137 931119 WORK & FAMILY BY SUE SHELLENBARGER FLEXIBLEWORK PLANS CREEP INTO SILICON VALLEY MANY EMPLOYERS IN CALIFORNIA'S HIGHTECH CORRIDOR ARE BEST KNOWN FOR WORKAHOLIC CULTURES THAT HAVE MADE PAID SABBATICALS A POPULAR TOOL FOR PREVENTING BURNOUT BUT NOW A GROWING NUMBER OF SILICON VALLEY EMPLOYERS ARE MOVING TOWARD PARTTIME AND FLEXIBLE SCHEDULES SUN MICROSYSTEMS HAS A 25MEMBER TASK FORCE STUDYING FLEXTIME AND TELECOMMUTING A SPOKESMAN SAYS SINCE SUN WAS FOUNDED 11 YEARS AGO ITS EMPLOYEES' AVERAGE AGE HAS RISEN FROM THE 20S TO 36 AND MANY ARE LOOKING FOR QUALITY TIME AT HOME OR MORE TIME TO SPEND WITH THEIR FAMILIES THE SPOKESMAN SAYS SILICON GRAPHICS IS CONSIDERING POLICIES THAT WOULD ENCOURAGE PARTTIME WORK LIKE MOST COMPANIES IT COUNTS A PARTTIMER AS ONE EMPLOYEE FOR BUDGETING PURPOSES DISCOURAGING MANAGERS FROM HIRING TWO PARTTIMERS TO CARRY A FULLTIME WORKLOAD TO REMOVE THAT BARRIER THE FIRM IS THINKING OF SWITCHING TO FULLTIME EQUIVALENT BUDGETING WHICH TALLIES A PARTTIMER AS LESS THAN ONE EMPLOYEE BASED ON HOURS WORKED A CHANGE COULD CREATE AN ATMOSPHERE THAT ENCOURAGES A DIVERSE WORKFORCE SAYS CHARLOTTE ANDERSON SILICON GRAPHICS BENEFITS MANAGER TANDEM COMPUTERS IS TESTING TELECOMMUTING FOR SOME EMPLOYEES AND HEWLETTPACKARD IS GETTING MORE INQUIRIES ABOUT ITS LONGESTABLISHED FLEXIBLESCHEDULING POLICIES FROM OTHER SILICON VALLEY FIRMS A SPOKESWOMAN SAYS BUT CHANGE COMES SLOWLY AT ELECTRONIC ARTS AN ENTERTAINMENTSOFTWARE CONCERN PEOPLE PUT IN LOTS OF LONG HOURS AND MANY PEOPLE WORK ALL NIGHT SAYS JIM GUINEY DIRECTOR OF HUMAN RESOURCES WE ARE TRYING TO ACCOMMODATE MORE WOMEN RETURNING FROM MATERNITY LEAVE WITH PARTTIME SCHEDULES BUT WITH THE DEMANDS TO WORK MORE THAN 40 HOURS A WEEK IT'S DIFFICULT BOTH PINK AND BLUECOLLAR WORKING MOTHERS STILL HIT BARRIERS TO BREASTFEEDING WHEN TERESA RIEGEL A FLOATER ON THE PRODUCTION LINE AT CHRYSLER TRIED TO RETURN TO WORK AFTER CHILDBIRTH SHE ASKED TO LENGTHEN HER 15MINUTE BREAKS TO ALLOW HER TO PUMP MILK FOR HER BABY WHEN CHRYSLER REFUSED TO LET HER RETURN BUT EXTENDED HER UNPAID LEAVE SHE SUED THE COMPANY FOR DISCRIMINATION RALPH SIRLIN A LAWYER FOR MS RIEGEL CALLS THE CHRYSLER ACTION ELITIST HE SAYS THE COMPANY IS FULLY AWARE THAT WOMEN WHO ARE OFFICE WORKERS ARE CLOSING THEIR DOORS OR GOING INTO NICE EXECUTIVE BATHROOMS TO PUMP MILK ADDS RONA COHEN LACTATION CONSULTANT FOR MEDELA A BREASTPUMP MAKER THERE IS STILL A TENDENCY TO FEEL THAT BREASTFEEDING IS FOR THE PRIVILEGED IN THE CORPORATE OFFICE FOR THE HIGHLEVEL INDIVIDUAL CHRYSLER SAYS IT DIDN'T MEAN TO KEEP MS RIEGEL FROM BREASTFEEDING BUT WANTED TO TREAT WORKERS EQUALLY UNDER ITS UNION CONTRACT AND KEEP PRODUCTION ROLLING BUT AS A TRIAL DATE APPROACHED THE COMPANY HIRED A LACTATION CONSULTANT WHO HELPED MS RIEGEL CUT THE TIME SHE NEEDED TO PUMP MILK AND EQUIPPED A ROOM FOR HER USE AN OUTOFCOURT SETTLEMENT WAS REACHED AND WHILE NEITHER SIDE WILL DISCUSS THE TERMS MS RIEGEL RECENTLY RETURNED TO WORK IN CLEARWATER FLA JUDY DEELEY SAYS SHE WAS FORCED TO PUMP MILK IN HER CAR PARKED IN 100DEGREE HEAT OUTSIDE HER OFFICE AFTER HER BOSS TOLD HER SHE COULDN'T BRING HER BREAST PUMP INSIDE THOUGH MS DEELEY A SENIOR RECORDS SPECIALIST FOR PINELLAS COUNTY'S TRAFFIC COURT HAS SINCE BEGUN USING A RESTROOM INSIDE THE BUILDING FOR PUMPING SHE IS TRYING TO HAVE REMOVED FROM HER FILE A WRITTEN REPRIMAND HER BOSS GAVE HER FOR USING A SMALL SUPPLY ROOM WHEN SHE FIRST RETURNED TO WORK HER EMPLOYER CIRCUIT COURT CLERK KARLEEN DE BLAKER SAYS MS DEELEY MISUNDERSTOOD HER BOSS'S INSTRUCTIONS AND WAS ALWAYS FREE TO USE THE RESTROOM VIDEOPHONES AID A TOPLEVEL TELECOMMUTING SETUP AT KOSS WHEN SUJATA SACHDEVA VICE PRESIDENT FINANCE FOR THE MILWAUKEEBASED MAKER OF HEADPHONES AND SPEAKERS TOLD HER PRESIDENT MICHAEL J KOSS SHE WAS MOVING TO HOUSTON SO HER HUSBAND COULD TAKE A POSITION THERE MR KOSS DIDN'T WANT TO LOSE HER SO HE SET HER UP TO WORK FROM HER NEW HOME WITH A COMPUTER FAX AND MODEM INSTEAD HE INSTALLED VIDEOPHONES AND IT TOOK A LOT OF THE ANXIETY AWAY HE SAYS IF I COULD SEE HER THERE AND SHE COULD SEE ME IT RESTORED THE PERSONAL DIMENSION THOUGH USING TELECOMMUTING TO RETAIN KEY EXECUTIVES IS UNUSUAL IT HAS GONE FROM ALMOST NEVER TO RARE SAYS GIL GORDON A MONMOUTH JUNCTION NJ CONSULTANT IF I'M LOOKING AT A RELOCATION BILL OF 40000 TO 50000 TO REPLACE A TOP EXECUTIVE THAT PAYS FOR A LOT OF THE TELEPHONE TIME AND PLANE TICKETS NEEDED TO RETAIN A TELECOMMUTER HE SAYS THE LOS ANGELES RAMS DODGE THE SLINGS AND ARROWS AIMED AT THE HOUSTON OILERS A FEW WEEKS AGO FOR DOCKING TACKLE DAVID WILLIAMS'S PAY FOR MISSING A GAME TO ATTEND HIS WIFE'S CHILDBIRTH RAMS DEFENSIVE END FRED STOKES GOT HIS CHECK FOR A RECENT SAN FRANCISCO 49ERS GAME EVEN THOUGH HE ONLY SHOWED UP FOR THE FINAL TWOMINUTE WARNING AFTER CHARTERING A JET FROM THE HOSPITAL WHERE HIS WIFE WAS GIVING BIRTH FOR 29 A MONTH A MACHINE PROGRAMMED BY UNITED SPEECH & SIGNAL DALLAS CHECKS UP ON KIDS BY PHONE AFTER SCHOOL IF THE CHILD DOESN'T RESPOND THE SERVICE CONTACTS PARENTS OR OTHER BACKUPS 9311190136 931119 BUSINESS BRIEF MCCORMICK CPC RABOBANK END PLANS FOR SPICE VENTURE SPARKS MD MCCORMICK & CO CPC INTERNATIONAL INC AND RABOBANK NEDERLAND ENDED THEIR AGREEMENT TO FORM A EUROPEAN SPICE AND HERB VENTURE THE COMPANIES SAID THEY WERE TOLD THE PROPOSED VENTURE'S ACQUISITION OF A GERMAN SPICE CONCERN KARL OSTMANN GMBH WASN'T LIKELY TO BE APPROVED BY GERMAN OFFICIALS BECAUSE CPC ALREADY OWNS A GERMAN SPICE FIRM THE ACQUISITION WAS AN ESSENTIAL PART OF THE PROPOSED VENTURE ANNOUNCED SEPT 8 BOTH MCCORMICK AND CPC ENGLEWOOD CLIFFS NJ SAID THE AGREEMENT'S DISSOLUTION WILL HAVE ESSENTIALLY NO EFFECT ON 1994 EARNINGS BECAUSE THEY DIDN'T EXPECT THE VENTURE TO INCREASE PROFIT SHARPLY IN ITS FIRST YEAR BAILEY A THOMAS MCCORMICK'S CHAIRMAN SAID THAT ACQUIRING A GERMAN SPICE COMPANY IS NOW AT THE TOP OF OUR LIST AND HE DIDN'T RULE OUT KARL OSTMANN AS A TARGET GERMANY HE SAID IS THE SECOND MOST IMPORTANT SPICE MARKET AFTER THE US KONRAD SCHLATTER CHIEF FINANCIAL OFFICER FOR CPC DECLINED TO ELABORATE ON CPC'S EXPANSION PLANS WHILE THIS SPICE AND HERB DEAL WAS CERTAINLY AN INTERESTING CONCEPT TO EXPLOIT IN A PARTNERSHIP IT WASN'T SUCH A BIG DEAL FOR US HE SAID THE VENTURE TO BE CALLED EUROPEAN SPICE PARTNERS BV WAS TO COMBINE THE HERB AND SPICE RETAIL AND CATERING BUSINESSES OF MCCORMICK AND CPC IN EUROPE THE KARL OSTMANN OPERATION AND THE FINANCIAL RESOURCES OF RABOBANK THE PROPOSAL WAS REFERRED TO GERMAN REGULATORS AFTER EUROPEAN COMMUNITY COMMISSION MERGER OFFICIALS MISSED A DEADLINE FORFEITING THE COMMISSION'S RIGHT TO INTERVENE 9311190135 931119 GLAXO SMITHKLINE RENEW THEIR RIVALRY IN MEDICINES USED TO PREVENT VOMITING BY STEPHEN D MOORE STAFF REPORTER OF THE WALL STREET JOURNAL THE BRAWL BETWEEN GLAXO HOLDINGS PLC AND SMITHKLINE BEECHAM PLC FOR DOMINANCE OF THE HUGE ULCER DRUG MARKET GALVANIZED THE PHARMACEUTICAL INDUSTRY DURING THE 1980S LATELY THE GLAXOSMITHKLINE RIVALRY HAS SPREAD TO ANOTHER POTENTIALLY GIANT THERAPEUTIC AREA MEDICINES USED TO PREVENT VOMITING AND NAUSEA IN PATIENTS UNDERGOING CANCER CHEMOTHERAPY JUDGING FROM FIREWORKS AT A SCIENTIFIC CONFERENCE IN JERUSALEM THIS WEEK BAREKNUCKLE TACTICS ARE STILL THE RULE ON MONDAY AT THE EUROPEAN CONFERENCE ON CLINICAL ONCOLOGY AND CANCER NURSING SMITHKLINE UNVEILED DATA FROM THREE CLINICAL STUDIES IT TOUTED AS THE FIRST HEADTOHEAD COMPARISONS BETWEEN A NEW GENERATION OF ANTIEMETIC MEDICINES KNOWN AS 5HT3 ANTAGONISTS SMITHKLINE CLAIMED THE RESULTS PARTICULARLY OF ONE INDEPENDENT FINNISH TRIAL INVOLVING 130 PATIENTS PROVED THE SUPERIOR EFFICACY OF ITS KYTRIL OVER GLAXO'S ANTIEMETIC ZOFRAN AND A THIRD DRUG NAVOBAN FROM SANDOZ AG MORE CONVENIENT DOSAGE SMITHKLINE BOASTED MADE KYTRIL THE CLEAR PREFERENCE OF PATIENTS INVOLVED IN THE TRIALS EVEN MORE IMPORTANT TO INCREASINGLY COSTCONSCIOUS HEALTHCARE PROVIDERS A FRENCH STUDY OF 150 PATIENTS FOUND A SINGLE DOSE OF KYTRIL AS EFFECTIVE AS THE THREEDAY COURSE OF TREATMENT AT NEARLY TRIPLE THE COST WHICH GLAXO RECOMMENDED FOR ZOFRAN SMITHKLINE'S ULCER DRUG TAGAMET WAS FIRST TO MARKET AND BECAME THE WORLD'S BIGGEST SELLING DRUG ONLY TO BE DISPLACED BY GLAXO'S ZANTAC AS THE WORLD'S NO 1 MEDICINE FOR THE PAST SIX YEARS ZANTAC WAS LAUNCHED LATER AND WAS CONSIDERED LESS OF A SCIENTIFIC BREAKTHROUGH BUT IT WAS MARKETED MORE AGGRESSIVELY SMITHKLINE EXECUTIVES HOPE TO TURN THE TABLES IN THE KYTRILZOFRAN RACE ZOFRAN IS BY FAR THE MOST SUCCESSFUL OF GLAXO'S NEW DRUGS ROCKETING TO SALES OF 365 MILLION 5406 MILLION IN THE YEAR ENDED JUNE 30 IT HAS BEEN ON THE MARKET FOR ABOUT TWO YEARS KYTRIL THOUGH AVAILABLE IN MOST OF EUROPE AND JAPAN STILL HASN'T RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL IN THE US AND AS A RESULT SALES IN THIS YEAR'S FIRST NINE MONTHS WERE JUST 50 MILLION MANY INDUSTRY ANALYSTS EXPECT ZOFRAN TO CLAIM AT LEAST TWOTHIRDS OF A 1 BILLION ANTIEMETIC MARKET BY THE END OF THE DECADE ROUGHLY DOUBLE KYTRIL'S PROJECTED ANNUAL SALES BUT WITH TWO VERY EFFECTIVE DRUGS LIKE KYTRIL AND ZOFRAN DIFFERENCES ARE GOING TO BE SUBTLE AND YOU HAVE TO LOOK VERY CLOSELY IN PARTICULAR CIRCUMSTANCES TO SEPARATE THEM EXPLAINED PAUL JENNER SMITHKLINE'S VICE PRESIDENT MEDICINAL AFFAIRS FOR CENTRAL NERVOUSSYSTEM DRUGS WE BELIEVE THIS IS HAPPENING NOW IN FAVOR OF KYTRIL AND WITH THE SUPPORT SMITHKLINE CAN GIVE THE PRODUCT THERE'S NO REASON WE SHOULDN'T DO A ZANTAC WITH IT GLAXO OFFICIALS ATTENDING THE CONFERENCE IMMEDIATELY CHALLENGED THE METHODOLOGY AND SEVERAL CLAIMS OF SMITHKLINE'S CLINICAL DATA IN A TELEPHONE INTERVIEW JOHN WOOD DIRECTOR OF INTERNATIONAL MEDICAL AFFAIRS AT GLAXO'S RESEARCH DIVISION NOTED THAT TWO OF THE TRIALS PRESENTED BY SMITHKLINE WERE OPEN RATHER THAN MORE HIGHLY REGARDED DOUBLE BLIND STUDIES IN A DOUBLEBLIND TRIAL NEITHER PATIENTS NOR PHYSICIANS KNOW WHICH PARTICIPANTS HAVE RECEIVED ACTUAL MEDICINES AND WHICH PLACEBOS MOST MAJOR REGULATORY AGENCIES AROUND THE WORLD DEMAND DATA FROM DOUBLEBLIND STUDIES AS THE BASIS OF AN APPLICATION WHEN APPROVAL IS SOUGHT FOR A NEW DRUG IF SMITHKLINE WENT ALONG WITH THESE RESULTS TO ASK THE US FOOD AND DRUG ADMINISTRATION FOR A CLAIM THEY WOULDN'T GET PAST FIRST BASE DR WOOD SAID IT'S SURPRISING THAT THERE'S AN ATTEMPT HERE TO CAPITALIZE ON DIFFERENCES IN STUDIES DONE IN THE ACADEMIC COMMUNITY WHERE RESOURCES AREN'T AVAILABLE TO DO THINGS PROPERLY IN A DOUBLEBLIND MANNER TO REFUTE SMITHKLINE'S DATA QUESTIONING EFFICACY OF EXTENDED TREATMENT WITH ZOFRAN GLAXO PRESENTED EVIDENCE FROM A PAIR OF TRIALS EACH INVOLVING NEARLY 500 PATIENTS THAT DEMONSTRATED STATISTICALLY SIGNIFICANT BENEFITS FOR ZOFRAN OVER KYTRIL IN CONTROLLING EMESIS OVER A FIVEDAY PERIOD THESE TRIALS SHOW THAT PATIENTS' NAUSEA AND VOMITING LAST LONGER THAN THE FIRST DAY OF CANCER CHEMOTHERAPY SO THEY NEED TREATMENT FOR MORE THAN ONE DAY EXPECTING THAT YOU CAN GIVE A DRUG JUST ONE DAY AS SMITHKLINE CLAIMS FOR KYTRIL AND STILL HAVE SOME MARGINAL EFFECT ON DAYS TWO THROUGH FIVE WHEN THERE'S NO DRUG LEFT IN THE BODY IS SIMPLY UNREALISTIC DR WOOD ARGUED THE COMPANIES ALSO SPLIT HAIRS OVER WHO HAD PRESENTED THE FIRST HEADTOHEAD COMPARISON OF KYTRIL AND ZOFRAN SMITHKLINE INSISTED THAT THE FINNISH STUDY WAS THE FIRST PEERREVIEWED COMPARATIVE CLINICAL STUDY BETWEEN 5HT3 RECEPTOR ANTAGONISTS GLAXO CLAIMED THE FIRST HEADTOHEAD COMPARISONS WERE PRESENTED AT A EUROPEAN CANCER MEETING IN PARIS IN FEBRUARY ONLY ONE STUDY BY GLAXO RESEARCHERS WAS A DOUBLEBLIND STUDY SHOWING NO DIFFERENCE IN RESULTS OF THE TWO DRUGS IN TREATMENT OF THE ACUTE PHASE OF CHEMOTHERAPYINDUCED VOMITING AND NAUSEA 9311190134 931119 DOW JONES EQUITY MARKET INDEX NEW YORK CARDINAL DISTRIBUTION INC IS BEING ADDED TO THE DRUGBASED RETAILERS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY THE DRUG WHOLESALING CONCERN REPLACES MEDCO CONTAINMENT SERVICES INC WHICH WAS ACQUIRED BY MERCK & CO 9311190133 931119 POLITICS & POLICY PEROT'S LOSS ON NAFTA MAY PROVIDE FUEL FOR HIS DRIVE TO CLEAN UP GOVERNMENT BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROSS PEROT LOST HIS FIGHT OVER THE NORTH AMERICAN FREE TRADE AGREEMENT AND WITH IT A CHUNK OF HIS POPULARITY BUT HE JUST MIGHT HAVE GAINED SOME NEW JUICE FOR HIS NEXT BIG ISSUE GOVERNMENT REFORM THE MANNER IN WHICH NAFTA WAS FINALLY APPROVED AMID A FLURRY OF HORSETRADING AND DEALMAKING HAS OPENED THE WAY FOR MR PEROT TO CLAIM THAT HE FAILED ONLY BECAUSE OF THE WASHINGTON LOBBYING AND INSIDER DEALS AGAINST WHICH HE RAILS THUS THE PEROT ORGANIZATION WAS GEARING UP YESTERDAY TO TURN DEFEAT ON NAFTA INTO A REVIVED CAMPAIGN FOR CLEANING UP GOVERNMENT THE DIRECT RESULT OF NAFTA IS WE GO STRONGLY INTO GOVERNMENT REFORM DECLARED SHARON HOLMAN A SPOKESWOMAN FOR MR PEROT ALREADY THAT MESSAGE IS REVERBERATING THROUGH MR PEROT'S UNITED WE STAND AMERICA ORGANIZATION THE RESPONSE TO THE NAFTA VOTE IF THE CALLS THAT WE'VE RECEIVED TODAY ARE ANY INDICATION WILL BE A RENEWED EMPHASIS ON GOVERNMENT REFORM SAID STEPHEN BOST HEAD OF UNITED WE STAND IN MAINE PEOPLE IN OUR MEMBERSHIP WERE GENUINELY ALARMED BY THE LEVEL OF HORSETRADING FOR VOTES IN A SENSE THAT MEANS THE PEROT ORGANIZATION IS LEAVING BEHIND ITS FORAY INTO NAFTA TO MOVE BACK ONTO MORE FAMILIAR TURF MR PEROT IS LIKELY TO HAMMER AWAY AT HIS CALLS FOR TERM LIMITS FOR LAWMAKERS A LINEITEM VETO TO RID THE BUDGET OF CONGRESSIONAL PORK HARSH LOBBYING RESTRICTIONS AND SWEEPING REFORM OF THE CAMPAIGNFINANCE SYSTEM THOSE ARE THE CORE ANTIESTABLISHMENT ISSUES THAT HELPED THRUST MR PEROT INTO THE POLITICAL SPOTLIGHT LAST YEAR AND ALLOWED HIM TO GALVANIZE A POPULIST FOLLOWING CONGRESS AND THE CLINTON ADMINISTRATION ARE TRYING TO STEAL A BEAT ON MR PEROT BY MOVING AHEAD THIS WEEKEND ON A BILL TO OVERHAUL CAMPAIGN FINANCES BUT THE TEXAS BILLIONAIRE PUSHES FOR MORE DRACONIAN CHANGES THAN LAWMAKERS WILL ENACT ALTHOUGH MR PEROT'S STANDING AMONG AMERICANS IN GENERAL HAS PLUMMETED IN THE PAST FEW MONTHS THERE'S LITTLE SIGN THAT HIS HARD CORE OF FOLLOWERS IS WAVERING IN ITS PASSION ABOUT SUCH CHANGES PEROT HAS BEEN WEAKENED BUT HE WILL BE AROUND SAID STANLEY GREENBERG PRESIDENT CLINTON'S POLLSTER AND MR GREENBERG PREDICTED MR PEROT'S FOLLOWERS WILL REMAIN DISENCHANTED AND STILL WILL BE LOOKING FOR AN OUTLET WHAT THE NAFTA DEBATE SEEMS TO HAVE DONE THOUGH IS TO SUGGEST THAT IN ANY FUTURE PRESIDENTIAL BID MR PEROT WOULD FACE DIFFICULTIES IN GREATLY EXPANDING HIS APPEAL BEYOND HIS EASILY IDENTIFIABLE CORE OF SUPPORTERS IN A RECENT WALL STREET JOURNAL/NBC NEWS POLL TAKEN DURING THE NAFTA DEBATE FOR INSTANCE A MAJORITY SAID THEY HOPE MR PEROT DOESN'T RUN FOR PRESIDENT AT ALL IN 1996 MR PEROT WHO GOT 19 OF THE PRESIDENTIAL VOTE LAST YEAR CONTINUES TO INSIST HE HAS NO FIRM PLANS TO RUN AGAIN ANYWAY NOR DOES HIS ORGANIZATION HAVE PLANS TO SPECIFICALLY RUN OR ENDORSE CANDIDATES FOR CONGRESSIONAL ELECTIONS NEXT YEAR BUT A RENEWED FOCUS ON GOVERNMENT REFORM WOULD GIVE MR PEROT ANOTHER VEHICLE TO KEEP STOKING HIS MOVEMENT'S DISCONTENT WITH THE STATUS QUO THAT DOESN'T MEAN MR PEROT WILL ABANDON OTHER POLICY ISSUES ON THE TRADE FRONT FOR INSTANCE HE HAS SIGNALED THAT HE COULD RETURN TO STIR THINGS UP DURING CONSIDERATION OF A NEW GLOBAL TREATY BEING FINISHED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN A BOOK HE COAUTHORED ON NAFTA MR PEROT COMPLAINS THAT THE GATT STRUCTURE IMPINGES ON AMERICAN NATIONAL SOVEREIGNTY BY ALLOWING SECRETIVE INTERNATIONAL BUREAUCRATS TO RULE ON THE ACCEPTABILITY OF AMERICAN TRADE PRACTICES AND MR PEROT WHO HAS ACERBICALLY CRITICIZED THE SIZE AND EXPENSE OF THE CLINTON HEALTH PROGRAM APPARENTLY INTENDS TO WEIGH IN AT SOME POINT ON THE HEALTHCARE DEBATE BUT MS HOLMAN SAYS HE HASN'T YET SETTLED ON AN APPROACH MR PEROT'S NAFTA EXPERIENCE AND PARTICULARLY HIS PERFORMANCE IN HIS TELEVISED DEBATE WITH VICE PRESIDENT AL GORE HAVE OPENED NEW QUESTIONS ABOUT HOW EFFECTIVE HE CAN BE ON SUCH SPECIFIC POLICY ISSUES ALLIES THINK HE MAY BE BETTER OFF BY SIMPLY CONTINUING TO TAP INTO THE DEEP LODE OF GENERAL DISGUST WITH POLITICIANS BUT WHATEVER MR PEROT'S SHORTTERM TACTICS THERE'S NO DOUBT THAT THE IRE OF HIS FOLLOWERS WILL BE FIXED ON LAWMAKERS WHO VOTED FOR NAFTA SINCE GOP LAWMAKERS TILTED SO HEAVILY TOWARD THE TRADE AGREEMENT THE PEROT MOVEMENT'S ANGER MAY BE MORE DIRECTED AT REPUBLICANS IN THE 1994 MIDTERM ELECTION BUT ANY REPRESENTATIVE WHO BACKED THE AGREEMENT AND PARTICULARLY THOSE WHO SWITCHED FROM OPPOSITION TO SUPPORT AT THE LAST MINUTE FACES RISK ONE WHO CHANGED SIDES REP HARRY JOHNSTON D FLA SAID HIS OFFICE WAS FLOODED WITH VITRIOLIC PHONE CALLS FROM PEROT SUPPORTERS ECHOING THEIR LEADER'S VOW TO REMEMBER IN NOVEMBER REP JOHNSTON NOTES THEY ESCALATED THEIR VENOM 9311190132 931119 DELTA QUEEN COMPLETES OFFER NEW ORLEANS DELTA QUEEN STEAMBOAT CO SAID IT COMPLETED ITS OFFERING OF 24 MILLION COMMON SHARES AT 16 APIECE THE CRUISE LINE OPERATOR SAID ITS PROCEEDS OF 346 MILLION WILL BE USED FOR CAPITAL DEBT REPAYMENT AND GENERAL CORPORATE PURPOSES BEFORE THE OFFERING DELTA QUEEN SAID IT HAD 113 MILLION COMMON SHARES OUTSTANDING STEPHENS INC AND GENESIS MERCHANT GROUP MANAGED THE UNDERWRITING FOR THE OFFERING 9311190131 931119 WHO'S NEWS NATIONAL CITY CORP NATIONAL CITY CORP CLEVELAND ELLEN J ABRAMS 50 YEARS OLD WAS NAMED PRESIDENT OF THIS BANK HOLDING COMPANY'S NATIONAL CITY TRUST CO UNIT WHICH IS BASED IN WEST PALM BEACH FLA SHE SUCCEEDS GARY L GALBREATH WHO WAS RECENTLY NAMED EXECUTIVE VICE PRESIDENT AND TRUST LOCATION HEAD FOR THE COMPANY'S NATIONAL CITY BANK COLUMBUS UNIT MS ABRAMS HAD SERVED AS VICE PRESIDENT AND SENIOR TRUST OFFICER OF NATIONAL CITY TRUST 9311190130 931119 WHO'S NEWS NOVELLUS SYSTEMS INC NOVELLUS SYSTEMS INC SAN JOSE CALIF RICHARD S HILL 41 YEARS OLD GROUP VICE PRESIDENT OF TEKTRONIX INC WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SEMICONDUCTOR MAKER HE SUCCEEDS JOSEPH DOX WHO RETIRED 9311190129 931119 WHO'S NEWS WACHOVIA REASSIGNS 4 EXECUTIVES AS PART OF LEADERSHIP CHANGE CHARLOTTE NC WACHOVIA CORP HAS REASSIGNED FOUR EXECUTIVES IN THE WAKE OF THE RETIREMENT OF ITS CHIEF EXECUTIVE OFFICER JOHN MEDLIN THE NEW ASSIGNMENTS REFLECT THE PASSING OF POWER TO LM BUD BAKER JR 51 YEARS OLD WHO WILL BECOME CEO ON JAN 1 THE BANK SAID HUGH DURDEN 50 SENIOR EXECUTIVE FOR WACHOVIA'S SOUTHERN REGIONAL OFFICE IN CHARLOTTE NC WILL BECOME EXECUTIVE VICE PRESIDENT IN CHARGE OF TRUST SERVICES MR DURDEN SUCCEEDS DAVID COTTERILL 56 WHO IS RETIRING IN JANUARY AFTER 30 YEARS WITH WACHOVIA MR DURDEN WILL BE SUCCEEDED BY ISAIAH TIDWELL 48 NOW THE BANK'S REGIONAL VICE PRESIDENT MR TIDWELL'S JOB WILL BE FILLED BY WILLIAM BARDIN JR 39 NOW A SENIOR VICE PRESIDENT AND AREA EXECUTIVE WITH WACHOVIA IN BURLINGTON JAMES T BREWER 59 EXECUTIVE VICE PRESIDENT OF ADMINISTRATIVE SERVICES WILL RETIRE DEC 31 KENNETH W MCALLISTER 44 WILL SUCCEED MR BREWER AND CONTINUE AS GENERAL COUNSEL FOR WACHOVIA CORP 9311190128 931119 FDA PLANS TO ADD CONTROLS ON DESIGN OF MEDICAL DEVICES WASHINGTON THE FOOD AND DRUG ADMINISTRATION PROPOSED ADDING DESIGN CONTROLS TO TOUGHEN THE MANUFACTURING STANDARDS FOR MEDICAL DEVICES RATHER THAN SAYING YOU NEED QUALITY CONTROL THROUGH TESTING AT THE END OF THE MANUFACTURING PROCESS IT SAYS STEP BACK AND DESIGN IN QUALITY SAID DR BRUCE BURLINGTON DIRECTOR OF THE CENTER FOR DEVICES AND RADIOLOGICAL HEALTH OF THE FDA THE PROPOSED REGULATION WOULD APPLY TO A VARIETY OF MEDICAL DEVICES INCLUDING HEART VALVES CATHETERS PACEMAKERS AND VENTILATORS AS WELL AS MEDICALDEVICE SOFTWARE THE FDA WHICH REVIEWED THE RECALLS OF ABOUT 2000 DIFFERENT MEDICAL DEVICES FROM 1983 TO 1989 SAID DESIGN FLAWS CAUSED 44 OF THE PROBLEMS A MODEL OF PFIZER INC'S SHILEY HEART VALVE FOR EXAMPLE WAS RECALLED IN 1986 AFTER ABOUT 350 OF THE VALVES DEVELOPED A HAIRLINE CRACK RESULTING IN THE DEATHS OF ABOUT TWOTHIRDS OF THE PATIENTS WE BELIEVE THAT WAS A PROBLEM THAT COULD HAVE BEEN PREVENTED HAD DESIGN CONTROLS BEEN IN PLACE AT THE TIME SAID AN FDA SPOKESWOMAN UNDER THE PROPOSAL AN ANALYSIS OF POTENTIAL HAZARDS ASSOCIATED WITH THE USE OF THE MEDICAL DEVICES WOULD BE REQUIRED THE PROPOSED RULE IS PART OF A WORLDWIDE TREND TOWARD CLOSER REGULATION OF MEDICAL DEVICES THE FDA SAID THE INTERNATIONAL STANDARDS ORGANIZATION WHICH DEVELOPS VOLUNTARY INTERNATIONAL STANDARDS IS REVIEWING A SIMILAR PROPOSAL THAT HAS BEEN ADOPTED FOR SOME EUROPEAN PRODUCTS THE FDA'S DR BURLINGTON SAID IN MARCH AN FDA REPORT ALSO CALLED FOR TIGHTER SCIENTIFIC CONTROLS ON THE CLINICAL TRIALS OF MEDICAL DEVICES 9311190126 931119 UNIT OF BRENT WALKER ATTRACTS THE INTEREST OF MALAYSIA'S TANJONG A WALL STREET JOURNAL NEWS ROUNDUP TANJONG PLC A MALAYSIAN LOTTERY AND BETTING CONCERN HAS EMERGED AS A SERIOUS BIDDER FOR BRITAIN'S SECONDLARGEST BETTING CHAIN WILLIAM HILL GROUP LTD T ANANDA KRISHNAN THE MALAYSIAN BUSINESSMAN WHO CONTROLS TANJONG AND SEVERAL OF HIS ASSOCIATES HAVE BEEN LOOKING AT WILLIAM HILL GROUP SINCE MIDOCTOBER THAT'S ABOUT THE TIME WHEN THE BOOKMAKER'S DEBTSTRAPPED PARENT BRENT WALKER GROUP PLC AND THE COMPANY'S CREDITORS BEGAN SEEKING POTENTIAL BIDDERS IN AN EFFORT TO SHAVE THE LEISURE AND PROPERTY CONCERN'S DEBT AS WELL AS WILLIAM HILL'S 350 MILLION US5184 MILLION IN BORROWINGS THE FIELD OF INTERESTED BUYERS APPEARS TO HAVE BEEN NARROWED TO THREE INCLUDING TANJONG FROM ABOUT SEVEN LAST MONTH ACCORDING TO EXECUTIVES FAMILIAR WITH THE NEGOTIATIONS THE TWO OTHERS THEY SAY ARE A CONSORTIUM ADVISED BY LONDON MERCHANT BANK SG WARBURG & CO AND A GROUP LED BY LEGAL & GENERAL GROUP PLC AND CINVEN WHICH THEY IDENTIFIED AS AN INVESTMENT ARM OF THE BRITISH COAL CORP PENSION FUND A WEDNESDAY BRITISH PRESS REPORT WHICH STATED THAT TANJONG ALREADY HAS SUBMITTED A 500 MILLION BID FOR WILLIAM HILL WAS CALLED PREMATURE BY MALAYSIAN EXECUTIVES FAMILIAR WITH TANJONG'S INTEREST IN THE BRITISH BOOKMAKER THEY SAID NO BID HAS BEEN SUBMITTED BUT ADDED THAT 500 MILLION IS THE PRICE THE COMPANY IS CONSIDERING BUT IN THE END NONE OF THE INTERESTED BIDDERS MAY GET A CHANCE TO BUY WILLIAM HILL WHICH IS SECOND ONLY TO LONDON'S LARGEST BOOKMAKER LADBROKE GROUP PLC ANOTHER OPTION BEING CONSIDERED BY THE PARENT COMPANY'S CREDITORS LED BY STANDARD CHARTERED BANK PLC IS TO REFINANCE BRENT WALKER'S DEBT AND THEN SEEK A PUBLIC LISTING AND SALE OF WILLIAM HILL SHARES BRENT WALKER ACQUIRED WILLIAM HILL WHICH ALSO OPERATES PUBS IN BRITAIN IN THE MID1980S FROM GRAND METROPOLITAN PLC FOR ABOUT 650 MILLION A PRICE THAT'S NOW THE SUBJECT OF LITIGATION IN BRITISH COURTS DEBTSERVICING PROBLEMS AROSE HOWEVER BECAUSE BRENT WALKER PAID FOR THE ACQUISITION WITH THE HELP OF A 350 MILLION SYNDICATED LOAN THAT CARRIES A FIXED RATE OF NEARLY 20 AND IS DUE IN MARCH 9311190125 931119 WORLD MARKETS US VOTE ON NAFTA PROPELS MEXICAN STOCKS UP TO YET ANOTHER RECORD LIFTS EUROPEAN BOURSES A WALL STREET JOURNAL NEWS ROUNDUP MEXICAN STOCKS ROSE TO A RECORD HIGH THE SIXTH IN SEVEN SESSIONS AFTER THE US HOUSE OF REPRESENTATIVES PASSED THE NORTH AMERICAN FREE TRADE AGREEMENT EUROPEAN BOURSES GOT A LIFT FROM US APPROVAL OF THE TRADE PACT WITH CANADA AND MEXICO FRANKFURT STOCKS WERE BUOYED EVEN AFTER GERMANY LEFT INTEREST RATES UNCHANGED WHICH DRAGGED PARIS PRICES DOWN FOLLOWING AN EXUBERANT START SPURRED BY NAFTA LONDON SHARES ENDED HIGHER AFTER BEING PULLED DOWN FROM BIG GAINS BY AN EARLY SLUMP ON WALL STREET ASIAN MARKETS WHICH HAD EXPECTED THE US APPROVAL OF NAFTA REACTED CALMLY TOKYO STOCKS IN A MUTED RESPONSE TO THE JAPANESE POLITICAL REFORM PLAN'S CLEARING A BIG HURDLE ROSE A BIT THURSDAY IN EXTREMELY THIN DEALINGS THAT MIXED INDEXLINKED BUYING SELLING BY ARBITRAGERS AND POSITION ADJUSTING HONG KONG EQUITIES SANK AFTER A US STRATEGIST CLOUDED THE MARKET'S OUTLOOK WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11098 DOWN 007 REFLECTING LOWER AMERICAN AND EUROPEAN MARKETS AND HIGHER ASIA/PACIFIC MARKETS MINING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10490 UP 129 OR 13 WITH NORD RESOURCES OF THE US POSTING A 54 GAIN IN ITS LOCAL CURRENCY COAL STOCKS TRAILED AT 9237 DOWN 174 OR 19 WITH SUMITOMO COAL MINING OF JAPAN SLIDING 41 IN LOCAL CURRENCY IN MEXICO CITY THE IPC INDEX ROSE 1754 POINTS TO 216604 TOPPING THE MOST RECENT IN A SUCCESSION OF ALLTIME HIGHS 215935 SET TUESDAY AND RECOVERING FROM A MODERATE LOSS AT MIDDAY IN TENTATIVE TRADING THE SELLING WAS REVERSED AND STOCK PRICES LIFTED BY HOPES FOR MEXICAN ECONOMIC GROWTH AND LOWER INTEREST RATES FOREIGN INVESTORS AGAIN PROVIDED MUCH OF THE MARKET'S IMPETUS IN FRANKFURT WHERE THE EXCHANGE WAS CLOSED WEDNESDAY FOR A GERMAN HOLIDAY THE DAX 30STOCK INDEX CLIMBED 1362 POINTS TO 208534 BOUYED BY NAFTA AND HOPES FOR A CUT IN INTEREST RATES BY THE GERMAN BUNDESBANK THE CENTRAL BANK AT MIDDAY DIDN'T CHANGE KEY RATES THOUGH IT TRIMMED THE RATE FOR ITS SECURITIES REPURCHASE AGREEMENTS IN NEXT WEEK'S ALLOCATION SIGNALING FURTHER DROPS FOR THE BENCHMARK RATES AND GIVING SUPPORT TO STOCKS PARIS EQUITIES ENDED SLIGHTLY HIGHER AFTER AN EARLY SURGE BECAUSE OF NAFTA APPROVAL BUT AS THE DAY WORE ON THE RALLY FLAGGED ESPECIALLY AFTER THE GERMAN CENTRAL BANK DIDN'T CHANGE ITS KEY INTEREST RATES THE PARIS MARKET THE PREVIOUS DAY HAD SURGED 152 ON EXPECTATIONS THAT NAFTA WOULD AUGUR WELL FOR WORLD TRADE LIBERALIZATION TALKS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 55 POINTS TO 31255 AFTER PEAKING WITH AN 183POINT GAIN THE FT 30STOCK INDEX ROSE 76 POINTS TO 23714 VOLUME WAS A FAIRLY HEAVY 7063 MILLION SHARES UP FROM 6622 MILLION SHARES A DAY EARLIER DESPITE THE RETREAT FROM HIGHS SENTIMENT WAS HEARTENED BY THE MARKET'S RESILIENCE IN BRUSHING OFF PRESSURE TO FOLLOW THE US STOCK MARKET SHARPLY LOWER LONDON PRICES BOUNCED BACK AFTER THE FOCUS SHIFTED TO PROSPECTS FOR BRITISH EQUITIES FROM THIS WEEK'S FAVORABLE INFLATION AND OTHER DATA AND YESTERDAY'S REPORT THAT UNEMPLOYMENT FELL THE MOST IN 4 1/2 YEARS IN AMSTERDAM PRICES CLOSED MOSTLY HIGHER DESPITE SCATTERED LOSSES AMONG BLUE CHIPS AS THE MARKET WAS CHEERED BY DAYEARLIER INTERESTRATE CUTS IN EUROPE THE BUNDESBANK'S LATEST MODEST EASING PASSAGE OF NAFTA AND THE CLIMB IN FRANKFURT STOCKS IN BRUSSELS THOUGH SOME ISSUES KNEELED TO PROFITTAKING STOCKS ADVANCED TO THE SECOND RECORD FINISH IN A ROW AFTER WEDNESDAY'S CUT IN BELGIAN RATES FOLLOWING GOVERNMENT AGREEMENT ON AN AUSTERITY PLAN IN MILAN STOCKS ROSE PUSHED UP BY TELECOMMUNICATIONS ISSUES WITH THEIR IMPROVING PROSPECTS FOR EARNINGS AND INTERNATIONAL EXPANSION IN STOCKHOLM EQUITIES FELL AFTER AN EARLY RALLY LOST STEAM ONCE SWEDEN LEFT INTEREST RATES UNCHANGED IN ZURICH PRICES SURVIVED LATE PROFITTAKING ON WALL STREET'S DOWNTURN TO END HIGHER ON CONTINUING ENTHUSIASM ABOUT CYCLICAL ISSUES IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLUMPED 13741 POINTS WEDNESDAY ROSE 5761 TO 1816632 AFTER MOVING WITHIN A RANGE OF ONLY ABOUT 219 POINTS IN EARLY TRADING FRIDAY THE NIKKEI WAS DOWN 17452 POINTS TO 1799180 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES DOWN FROM 2144 MILLION SHARES A DAY EARLIER ADVANCING ISSUES SWAMPED RETREATING ISSUES 618316 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 852 POINTS WEDNESDAY GAINED 1050 TO 155132 THE TOKYO MARKET CHALKED UP EARLY GAINS PARTLY FROM APPROVAL OF NAFTA BUT COULDN'T SUSTAIN THEM IN AN AFTERNOON SELLOFF AS THE NORTH AMERICAN PACT WON'T HAVE MUCH EFFECT ON SOLVING JAPAN'S OWN ECONOMIC PROBLEMS THE MARKET WAS PREOCCUPIED BY THURSDAY'S PARLIAMENTARY VOTE ON JAPANESE POLITICAL REFORM WHICH WAS APPROVED BY THE LOWER HOUSE OF THE DIET JUST BEFORE TRADING ENDED PASSAGE BY THE UPPER HOUSE IS CONSIDERED CERTAIN BUT THIS DIDN'T PROVIDE A TONIC EITHER DESPITE ALSO OPENING THE WAY FOR A NEW ECONOMIC STIMULUS PACKAGE RATHER INVESTORS CONCENTRATED ON ADJUSTING POSITIONS FOR EXAMPLE TO LOCK IN PAPER PROFITS ON HOLDINGS THROUGH CROSSTRADING OR SELLING SHARES AND REBUYING THE SAME NUMBER LATER TO BOOK GAINS INVESTORS ALSO WERE CAUTIOUS AHEAD OF THE WEEKEND SUMMIT OF US AND ASIAN LEADERS IN SEATTLE IN SYDNEY SHARE PRICES CLOSED MODERATELY HIGHER AFTER GETTING A BOOST FROM THE NAFTA VOTE WHICH AN AUSTRALIAN OFFICIAL SAID COULD STIMULATE GLOBAL TRADE LIBERALIZATION IN HONG KONG STOCK PRICES SLUMPED 18 AFTER AN INFLUENTIAL US STRATEGIST BARTON BIGGS OF MORGAN STANLEY LOWERED HIS PORTFOLIO WEIGHTING IN THAT MARKET THE DUMPING OF STOCKS WHICH KNOCKED THE MARKET'S MAIN INDEX DOWN 36 IN THE OPENING MINUTES WAS DESCRIBED AS A KNEEJERK REACTION BY RETAIL INVESTORS TO THE MORGAN STANLEY MOVE FUND MANAGERS VIEWED THE DROP AS AN OVERREACTION AND TOOK ADVANTAGE OF THE SLUMP FOR BOTTOMFISHING PURCHASES HELPING THE MARKET RECOVER SOME OF THE SESSION'S LOSSES US LAWMAKERS' PASSAGE OF NAFTA CAME AS A RELIEF IN HONG KONG RATHER THAN PROVIDING ANY STIMULUS TO STOCKS WHICH HAVE SKIDDED 41 IN THE PAST THREE SESSIONS FROM A RECORD FINISH LAST MONDAY IN SEOUL PRICES RALLIED 15 EVEN AFTER LATE PROFITTAKING PULLED THEM BELOW INTRADAY HIGHS BUYING FOCUSED ON SMALL ISSUES WITH HIGH ASSET VALUES PER SHARE WHILE THE MARKET WAS BEARISH ON LARGECAPITALIZED FINANCIAL STOCKS THE MARKET WAS LITTLE AFFECTED BY THE US HOUSE'S APPROVAL OF NAFTA DESPITE A REPORT BY A SOUTH KOREAN STATERUN RESEARCH INSTITUTE SAYING THE AGREEMENT WOULD HURT SOUTH KOREA'S EXPORTS IN WELLINGTON THE RALLY CONTINUED PROPELLING SHARE PRICES UP 19 FOLLOWING THE PREVIOUS DAY'S SURGE ON THE RETURN TO POWER OF THE INCUMBENT GOVERNMENT WHICH HAS CHAMPIONED TOUGH ECONOMIC REFORMS 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 9311190124 931119 INTERNATIONAL QUESTION WILL YELTSIN HOLD EARLY VOTE ANSWER TRUE FALSE OR ALL OF THE ABOVE BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW WHEN WILL RUSSIA HOLD ITS NEXT PRESIDENTIAL ELECTION IT SOUNDS LIKE A SIMPLE QUESTION JUNE 1994 SAYS ANDREI SYCHOV SELLING LOTTERY TICKETS NEAR THE KREMLIN GOD KNOWS SAYS A WESTERN DIPLOMAT THE ANSWER DEPENDS ON PRESIDENT YELTSIN HIMSELF SAYS A PRESIDENTIAL AIDE THE CORRECT ANSWER USED TO BE JUNE 1996 AT THE END OF THE FIVEYEAR TERM TO WHICH BORIS YELTSIN WAS ELECTED IN 1991 BUT THAT WAS BEFORE MR YELTSIN REARRANGED THE ELECTORAL FURNITURE WITH HIS SEPT 21 DECREE DISSOLVING PARLIAMENT AND CALLING ELECTIONS DEC 12 FOR A NEW LEGISLATURE TO TEMPER HIS GRAB FOR PRESIDENTIAL RULE MR YELTSIN IMPLIED IN THE SAME DECREE THAT HE WOULD PUT HIS OWN MANDATE TO AN EARLY TEST HE SAID THAT THE NEW PARLIAMENT TO BE CALLED THE FEDERAL ASSEMBLY SHALL CONSIDER THE HOLDING OF ELECTIONS FOR PRESIDENT OF THE RUSSIAN FEDERATION ON SEPT 23 MR YELTSIN CLARIFIED HIS PLANS STATING I DECREE THE HOLDING OF A NEW ELECTION OF THE PRESIDENT OF THE RUSSIAN FEDERATION ON JUNE 12 1994 ELEVEN DAYS LATER SUCH AN ELECTORAL COMPROMISE BECAME LESS CENTRAL TO THE PRESIDENT'S AGENDA BY THEN MR YELTSIN'S TANK ASSAULT HAD DISSOLVED WHAT WAS LEFT OF THE SOVIETERA PARLIAMENT SOON AFTERWARD MEMBERS OF THE PRESIDENT'S STAFF BEGAN HINTING THAT EARLY ELECTIONS TO THE PRESIDENCY MIGHT BE WELL PREMATURE IT IS NOT NECESSARY TO HOLD ELECTIONS OF THE PRESIDENT EVERY YEAR MR YELTSIN'S CHIEF OF STAFF SERGEI FILATOV TOLD REPORTERS OCT THE CONFUSION BEGAN TO SPREAD ON NOV 6 MR YELTSIN DISSENTED FROM HIS OWN DECREE I'M AGAINST HOLDING THE NEXT PRESIDENTIAL ELECTION IN JUNE 1994 HE TOLD A GROUP OF MEDIA LEADERS IN MOSCOW HE ADDED I BELIEVE THE PRESIDENTIAL MANDATE SHOULD BE FULLY USED AND EXERCISED UNTIL 1996 MR YELTSIN'S BACKERS ABROAD SCRAMBLED TO TAKE THIS SWITCH INTO ACCOUNT PRESIDENT CLINTON OFFERED THE CAREFULLY WORDED STATEMENT THAT THE US WILL SUPPORT MR YELTSIN AS LONG AS HE IS PROMOTING DEMOCRACY AS LONG AS HE IS SUPPORTING HUMAN RIGHTS AS LONG AS HE IS SUPPORTING REFORM THEN CAME THE NOV 9 PUBLICATION OF MR YELTSIN'S NEW DRAFT CONSTITUTION TO BE PUT TO A NATIONAL REFERENDUM THE SAME DAY AS THE DEC 12 PARLIAMENTARY ELECTIONS AND TO TAKE EFFECT IMMEDIATELY IF APPROVED IN A SPECIAL TRANSITIONAL CLAUSE THIS DRAFT CONSTITUTION SPELLS OUT THAT THE RUSSIAN PRESIDENT FROM THE DAY THIS CONSTITUTION TAKES EFFECT EXERCISES THE POWERS SET DOWN IN THIS CONSTITUTION UNTIL THE END OF THE TERM FOR WHICH HE WAS ELECTED MR YELTSIN BEING THE PRESIDENT AND THE END OF HIS ELECTED TERM BEING 1996 THE DRAFT CONSTITUTION SEEMED TO CONFIRM THAT MR YELTSIN HAD BACKTRACKED ON HIS DECREE THAT HE WOULD FACE THE VOTERS IN 1994 LESS THAN A WEEK LATER HAVING DRAWN SOME CRITICISM IN RUSSIA MR YELTSIN BEGAN TO BACKTRACK ON HIS BACKTRACKING IN AN INTERVIEW PUBLISHED NOV 15 BY THE RUSSIAN NEWSPAPER IZVESTIA MR YELTSIN SAID THAT HIS DECREE CALLING EARLY PRESIDENTIAL ELECTIONS REMAINS VALID AFTER ALL HIS RECENT OPPOSITION TO HIS OWN PLAN HE IMPLIED WAS A PERSONAL UNOFFICIAL OPINION THAT DID NOT ALTER THE DECREE EVEN THOUGH I HAVE NO HEART FOR AN EARLY ELECTION JUST NOW ON TUESDAY RUSSIANS TURNED ON THEIR TELEVISIONS TO FIND MR YELTSIN EMBELLISHING ON HIS MIXED MESSAGE IN A LONG TWOPART INTERVIEW TAPED A FEW DAYS EARLIER MR YELTSIN WAS ASKED WHY HE HAD GONE BACK ON HIS PROMISE OF A 1994 PRESIDENTIAL POLL HE ANSWERED THAT HIS SWITCH HAD BEEN A TRIAL BALLOON EFFORTS TO CLEAR THE AIR ON A DEFINITE PRESIDENTIAL ELECTION DATE ONLY ADD TO THE FOG THERE IS NO STATEMENT WHICH CAN OPPOSE THE STATEMENT THAT THERE WILL BE NO ELECTIONS A PRESIDENTIAL AIDE SAID YESTERDAY RUSSIANS APPEAR TOLERANT OF MR YELTSIN'S WAFFLING PERHAPS PARTLY BECAUSE MR YELTSIN WON HIS OFFICE ONLY TWO YEARS AGO AND REINFORCED HIS MANDATE IN A NATIONAL REFERENDUM IN APRIL ONE SUPPORTER MR POLUDAROV THE WELDER SAYS THE PRESIDENT HAS BEEN ELECTED FOR A CERTAIN TERM AND IT'S IMPORTANT THAT HE STAY FOR THAT TERM ALSO SET AGAINST THE VAST AND GENERAL UNCERTAINTY THAT HANGS OVER RUSSIA ANYTHING AS FAR OFF AS JUNE IS STILL A SPECK ON THE HORIZON FIRST THE COUNTRY MUST GET THROUGH THE PARLIAMENTARY ELECTIONS NEXT MONTH ACCEPT OR REJECT THE DRAFT CONSTITUTION THAT DEFINES WHAT THE NEW DEPUTIES WILL ACTUALLY DO AND THEN RUN THROUGH ELECTIONS BETWEEN DECEMBER AND JUNE FOR THE LOCAL LEGISLATURES THAT MR YELTSIN ALSO DISSOLVED BY DECREE THIS FALL THE QUESTION THAT REMAINS HOWEVER IS WHETHER RUSSIA REALLY NEEDS AN ADDED DOSE OF UNCERTAINTY WHILE THE PRESIDENT DITHERS OVER HIS OWN FATE WAFFLING SAYS RUSSIAN JOURNALIST MIKHAIL BERGER IS USUAL YELTSIN POLICY AND THAT POLICY AS MR YELTSIN TOLD IZSVESTIA THIS WEEK IS THAT HIS DECREE ON AN EARLY PRESIDENTIAL ELECTION REMAINS IN FORCE AT LEAST UNTIL I CANCEL IT 9311190123 931119 SWEDEN'S OCTOBER TRADE SURPLUS THE AGENCY SAID THE JANUARYTOOCTOBER SURPLUS WAS 47 BILLION KRONOR COMPARED WITH A SURPLUS OF 30 BILLION KRONOR A YEAR EARLIER SCB SAID 9311190122 931119 ECONOMY PERSONAL INCOME ROSE BY 23 NATIONALLY IN THE SECOND QUARTER WASHINGTON MANY STATES NEAR THE EAST AND WEST COASTS SAW STRONG SECONDQUARTER INCREASES IN PERSONAL INCOME BUT LOWER FEDERAL FARMSUBSIDY PAYMENTS SLOWED INCOME GROWTH IN THE MIDWEST A COMMERCE DEPARTMENT REPORT SAID NATIONALLY INCOME GREW 23 IN THE SECOND QUARTER BEFORE ADJUSTMENT FOR INFLATION INCOME IN THE FIRST QUARTER DECLINED 14 BUT IS UP 55 FROM THE SECOND QUARTER OF LAST YEAR THE GOVERNMENT SAID INCOME WOULD HAVE INCREASED 16 IN THE FIRST QUARTER AND 07 IN THE SECOND QUARTER IF SOME BONUS PAYMENTS HADN'T BEEN MOVED FROM THE FIRST PERIOD TO 1992'S FOURTH QUARTER NEW YORK CONNECTICUT WASHINGTON NEW JERSEY UTAH FLORIDA AND NEVADA HAD THE FASTEST INCOME GROWTH IN THE SECOND QUARTER IN THOSE STATES INCOME REBOUNDED STRONGLY AFTER DECLINING OR BEING STATIC IN THE FIRST QUARTER THE REPORT SAID IOWA NEBRASKA AND SOUTH DAKOTA WERE THE ONLY STATES TO HAVE A DECLINE IN INCOME DURING THE SECOND QUARTER SEPARATELY THE LABOR DEPARTMENT REPORTED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 20000 LAST WEEK TO 338000 REVERSING A GAIN OF THE SAME AMOUNT THE WEEK BEFORE ANALYSTS SAID SOME OF LAST WEEK'S SHARP DECLINE COULD BE ATTRIBUTED TO THE VETERANS DAY HOLIDAY WHEN UNEMPLOYMENT OFFICES WERE CLOSED THE FOURWEEK MOVING AVERAGE FOR JOBLESS CLAIMS CONSIDERED A BETTER BAROMETER OF LABORMARKET ACTIVITY WAS 345500 LAST WEEK DOWN FROM 348750 THE PREVIOUS WEEK ALL FIGURES ARE ADJUSTED FOR SEASONAL VARIATIONS 9311190121 931119 MONEY FUND ASSETS ADVANCE 118 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS GREW 118 BILLION TO 59449 BILLION FROM A REVISED 58269 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 651 RETAIL MONEY MARKET MUTUAL FUNDS INCREASED BY 594 BILLION TO 39748 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 408 TAXABLE MONEY MARKET FUNDS GREW BY 484 BILLION TO 31109 BILLION ASSETS OF 243 RETAIL TAXEXEMPT FUNDS ROSE BY 109 BILLION TO 8638 BILLION ASSETS OF THE 273 INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY 587 BILLION TO 19701 BILLION AMONG INSTITUTIONAL FUNDS THE 220 TAXABLE MONEY MARKET FUND ASSETS ROSE BY 607 BILLION TO 17517 BILLION ASSETS OF THE 53 TAX EXEMPT FUNDS FELL BY 2018 MILLION TO 2184 BILLION 9311190120 931119 INTERNATIONAL DE BENEDETTI SAYS HE BEARS THE WEIGHT OF OLIVETTI'S WOES CHAIRMAN DISMISSES WORRIES ABOUT THE FIRM FOLLOWING HIS ARREST IN BRIBERY PROBE BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL IVREA ITALY AFTER SPENDING A DAY IN JAIL AND 10 DAYS UNDER HOUSE ARREST ON CORRUPTION CHARGES CARLO DE BENEDETTI THE 59YEAROLD CHAIRMAN OF ING C OLIVETTI & CO IS AS AGGRESSIVE AS EVER IN AN INTERVIEW MR DE BENEDETTI DISMISSED CONCERNS ABOUT HIS COMPANY'S FUTURE AS STUPID AND STRESSED THAT NOT ONLY IS HE BACK TO WORK AS USUAL BUT THE FALLOUT FROM HIS ARREST SHOULD HAVE NO IMPACT ON OLIVETTI NO SOONER WAS HE RELEASED FROM HOUSE ARREST ON CHARGES THAT HIS GROUP PAID 106 BILLION LIRE 63 MILLION IN KICKBACKS TO THE ITALIAN POSTAL MINISTRY THAN HE SAID HE RESUMED HIS USUAL SCHEDULE OF INTERNATIONAL BUSINESS MEETINGS ON MONDAY HE ATTENDED A EUROPEAN ROUND TABLE WITH BUSINESS AND POLITICAL LEADERS IN VIENNA AND HE WAS OFF TO LONDON FOR MEETINGS TUESDAY HE INSISTS THAT HE IS BEARING THE WEIGHT FOR OLIVETTI IN THE PROBE OF ITALY'S CORRUPTION SCANDAL I WENT TO JAIL NOT BECAUSE OF MYSELF BUT BECAUSE OF OLIVETTI HE SAID I AM HAVING PROBLEMS BECAUSE OF OLIVETTI SO IT'S STUPID TO SAY OLIVETTI WILL HAVE PROBLEMS BECAUSE OF ME EVERYBODY IS ASKING WHAT WILL HAPPEN TO OLIVETTI BUT PEOPLE ANSWERED THAT QUESTION ON THE STOCK MARKET HE SAID FOLLOWING MR DE BENEDETTI'S ARREST OLIVETTI'S COMMON SHARES FELL 4 BUT HAVE MOSTLY RECOVERED YESTERDAY THE STOCK ROSE 30 LIRE TO 1780 LIRE MR DE BENEDETTI STRESSED THAT OLIVETTI IS ONE OF MANY MULTINATIONAL COMPANIES CAUGHT UP IN ITALY'S MASSIVE CORRUPTION SCANDAL AMONG THOSE NAMED FOR PAYING KICKBACKS TO THE POST AND TELECOMMUNICATIONS MINISTRY ARE GERMANY'S SIEMENS AG THE MARCONI SUBSIDIARY OF BRITAIN'S GENERAL ELECTRIC CO NO RELATION TO THE US COMPANY FRANCE'S ALCATELALSTHOM SA AND SWEDEN'S TELEFON AB LM ERICSSON ALL OF THOSE CASES INCLUDING MR DE BENEDETTI'S ARE STILL UNDER INVESTIGATION AND JUDGES HAVE NOT YET DECIDED WHETHER THEY WILL GO TO TRIAL IN SUCH A SYSTEM YOU NEED TO DIVIDE UP THOSE WHO BENEFITED FROM PAYING BRIBES FROM THOSE WHO DID NOT MR DE BENEDETTI SAID REPEATING HIS DEFENSE THAT OLIVETTI LIKE MANY OTHER PRIVATE COMPANIES WAS A VICTIM OF SYSTEMATIC POLITICAL EXTORTION IN ITALY DURING THE 1980S I KNOW MANY PEOPLE WHO MADE MONEY ON BRIBES BUT IN MY CASE WHAT WE'RE DISCUSSING WAS ABSOLUTELY MARGINAL AND WAS NOT TO MAKE A PROFIT FOR THE COMPANY BUT MERELY TO COMPETE HE SAID THE MAGISTRATES' DECISION TO ARREST HIM HAS BEEN CRITICIZED IN ITALY BECAUSE MR DE BENEDETTI VOLUNTARILY ADMITTED IN MAY TO PAYING KICKBACKS TO MILAN MAGISTRATES WHO DECIDED HIS ARREST WASN'T NECESSARY WHEN THE CASE WAS TRANSFERRED TO ROME DURING THE SUMMER PROSECUTORS THERE DECIDED HE HAD ACTIVELY SOLICITED BUSINESS THROUGH BRIBES AND COULD REPEAT THE CRIME UNLESS HE WAS ARRESTED BEFORE BEING RELEASED TO HOUSE ARREST MR DE BENEDETTI WAS FINGERPRINTED AND BOOKED INTO ROME'S REGINA COELI PRISON NOV 2 AND INTERROGATED FOR HOURS AS A HUMAN BEING I FEEL MUCH STRONGER IF YOU GO THROUGH A VERY HARD EMOTION EITHER YOU COLLAPSE OR YOU GET OUT STRONGER HE SAID HE SAID HE FELT PROUD OF FULFILLING HIS DUTY AS CHAIRMAN OF THE COMPANY I'M THE ONLY ITALIAN CHAIRMAN TO TAKE RESPONSIBILITY FOR HIS MANAGERS NOBODY WENT TO JAIL AT OLIVETTI EXCEPT THE CHAIRMAN THIS WAS MY DUTY HE SAID BUT AS AN ITALIAN CITIZEN HIS FEELINGS ARE MORE MIXED THE PEACEFUL REVOLUTION GOING ON IN THIS COUNTRY CAN BRING EFFECTS THAT ARE DIFFICULT TO UNDERSTAND HE SAID BUT I BELIEVE THAT THE WORK THAT THE MAGISTRATES ARE DOING IS TO HELP AND CLEAN THE SYSTEM I AM AND I ALWAYS HAVE BEEN FAVORABLE TO THEIR WORK MR DE BENEDETTI WHO HAS BEEN AN OUTSPOKEN CRITIC OF THE NOWDISCREDITED GOVERNING COALITION PARTIES HAD HARSH WORDS FOR THE OUTGOING REGIME WHOM HE HOLDS RESPONSIBLE FOR EFFORTS TO DAMAGE HIS REPUTATION AS THE CONTROLLING SHAREHOLDER OF THE REPUBBLICA/ESPRESSO PUBLISHING GROUP I HAVE BEEN A GREAT OPPONENT TO THE REGIME THE REGIME CAN'T PUNISH A NEWSPAPER BUT IT CAN PUNISH AN ENTREPRENEUR HE SAID IN PARTICULAR HE CITED A COURT RULING LAST YEAR CONVICTING HIM OF FRAUDULENT BANKRUPTCY IN CONNECTION WITH THE COLLAPSE OF BANCO AMBROSIANO MR DE BENEDETTI WHO WAS DEPUTY CHAIRMAN OF BANCO AMBROSIANO FOR ABOUT TWO MONTHS BEFORE IT COLLAPSED HAD BEEN RECRUITED IN EFFORTS TO SAVE THE TROUBLED BANK MR DE BENEDETTI WHO IS APPEALING A SIXYEAR PRISON SENTENCE IN THE CASE CALLED THE CRIMINAL CONVICTION A POLITICAL VENDETTA AND I WILL PROVE IT HE WAS CLEARED OF THE CIVIL CHARGES IN THE CASE EARLIER THIS WEEK BUT AFTER 19 MONTHS STILL HASN'T RECEIVED THE COURT'S FORMAL REASONS FOR THE CRIMINAL SENTENCE A LONG DELAY EVER BY ITALIAN STANDARDS TECHNICALLY HE CAN'T FORMALLY APPEAL THE CASE UNTIL THE MOTIVATIONS ARE PUBLISHED I DON'T KNOW THE REASONS WHY THEY'VE WAITED SO LONG HE SAID YOU ASK YOURSELF WHY DO THEY WANT YOU TO WAIT THERE MUST BE A REASON BUT WHY 9311190119 931119 WHO'S NEWS KEYSTONE INTERNATIONAL INC KEYSTONE INTERNATIONAL INC HOUSTON F O'NEIL GRIFFIN CHAIRMAN AND OWNER OF FIRST NATIONAL BANK OF KERRVILLE TEXAS WAS ELECTED TO THE BOARD OF THIS MANUFACTURER OF FLOW CONTROL PRODUCTS MR GRIFFIN 67 YEARS OLD SUCCEEDS PAUL C KOOMEY WHO RETIRED FROM THE BOARD 9311190118 931119 TECHNOLOGY & HEALTH ANALYSIS OF POOLED DATA FINDS LINK BETWEEN HIGHVOLTAGE LINES LEUKEMIA BY ALIX M FREEDMAN STAFF REPORTER OF THE WALL STREET JOURNAL SCANDINAVIAN RESEARCHERS SAID THEY CONTINUE TO FIND A HIGHERTHANNORMAL RATE OF LEUKEMIA AMONG CHILDREN WHO LIVE NEAR HIGHVOLTAGE ELECTRIC POWER LINES THE RESEARCHERS CALCULATED THAT PROXIMITY TO A HIGHVOLTAGE POWER LINE DOUBLES A CHILD'S RISK OF LEUKEMIA ALTHOUGH THE RISK IS EXTREMELY LOW THEIR REPORT WHICH APPEARS IN THIS WEEK'S ISSUE OF THE LANCET A BRITISH MEDICAL JOURNAL IS THE LATEST TO IMPLY THAT THE ELECTROMAGNETIC FIELDS EMANATING FROM HIGHVOLTAGE TRANSMISSION LINES MIGHT BE A HEALTH HAZARD WHILE ACKNOWLEDGING THAT A BIOLOGICAL EXPLANATION FOR THE INCREASED RISK REMAINS UNKNOWN THE RESEARCHERS LED BY DR ANDERS AHLBOM OF THE KAROLINSKA INSTITUTE IN SWEDEN SAID THEIR RESULTS SUPPORT THE HYPOTHESIS THAT EXPOSURE TO MAGNETIC FIELDS GENERATED BY TRANSMISSION LINES HAS SOME AETIOLOGICAL CAUSAL ROLE IN THE DEVELOPMENT OF LEUKEMIA IN CHILDREN THE SCIENTISTS BASED THEIR ANALYSIS OF DATA POOLED FROM THREE STUDIES CONDUCTED IN DENMARK FINLAND AND SWEDEN THE POOLED DATA COVERS THE FATES OVER THE PAST 20 YEARS OF ALL CHILDREN UNDER 15 YEARS OF AGE WHO LIVED WITHIN 300 METERS OF HIGHVOLTAGE TRANSMISSION LINES AND WHO HAD BEEN EXPOSED TO EMF LEVELS HIGHER THAN GENERALLY ENCOUNTERED IN THE ENVIRONMENT ACCORDING TO DR JORGEN OLSEN ONE OF THE REPORT'S AUTHORS DR OLSEN ESTIMATED THAT ABOUT 05 OR 15000 OF THREE MILLION SCANDINAVIAN CHILDREN FELL INTO THIS GROUP THIRTEEN OF THEM DEVELOPED LEUKEMIA OVER THE TWO DECADES THE STUDY REPORTED IN A TELEPHONE INTERVIEW DR OLSEN CHIEF OF THE CANCER EPIDEMIOLOGY DIVISION AT THE DANISH CANCER SOCIETY IN COPENHAGEN CHARACTERIZED THE ASSOCIATION BETWEEN LEUKEMIA AND EMF FROM POWER LINES AS STATISTICALLY SIGNIFICANT HE STRESSED HOWEVER THAT THE HEALTH PROBLEM IS OF LIMITED SIZE YOU END UP WITH A TWOFOLD INCREASE IN THE RISK FOR LEUKEMIA BUT IN A RELATIVELY SMALL SUBGROUP THE STUDY FOUND NO EXCESS RISK OF EITHER BRAIN TUMORS OR LYMPHOMAS AN OFFICIAL AT THE UTILITY INDUSTRY'S EDISON ELECTRIC INSTITUTE IN WASHINGTON SAID THE STUDY HAD CERTAIN WEAKNESSES AND METHODOLOGICAL FLAWS AND INVOLVED RELATIVELY FEW CASES OF LEUKEMIA RICK LOUGHERY DIRECTOR OF ENVIRONMENTAL ACTIVITIES SAID NEVERTHELESS THAT THE STUDY STILL DOES POSE VERY IMPORTANT QUESTIONS THAT MUST BE ADDRESSED BY RESEARCH IN THE US AND THROUGHOUT THE WORLD THE SCANDINAVIAN RESEARCHERS COMBINED DATA FROM TWO STUDIES PREVIOUSLY PUBLISHED IN THE BRITISH MEDICAL JOURNAL AND FROM A KAROLINSKA INSTITUTE STUDY WHICH WAS PUBLISHED LAST MONTH IN THE AMERICAN JOURNAL OF EPIDEMIOLOGY THE KAROLINSKA INSTITUTE STUDY WHICH GENERATED WIDESPREAD PUBLICITY WHEN ITS RESULTS WERE FIRST RELEASED A YEAR AGO FOUND NEARLY THREE TIMES THE NORMAL RATE OF LEUKEMIA AMONG SWEDISH CHILDREN EXPOSED TO RELATIVELY HIGH EMF LEVELS