WASHINGTON THE WHITE HOUSE SCALED BACK BENEFITS FOR MENTALHEALTH AND SUBSTANCEABUSE TREATMENT IN ITS HEALTHCARE PLAN THE REDUCTION IS ONE OF ABOUT 20 TECHNICAL CHANGES THE WHITE HOUSE IS MAKING BEFORE THE 1342PAGE BILL IS FORMALLY INTRODUCED IN CONGRESS PROBABLY NEXT WEEK PRESIDENT CLINTON AND HILLARY RODHAM CLINTON DELIVERED THE LEGISLATION TO CAPITOL HILL LAST MONTH A WHITE HOUSE OFFICIAL SAID YESTERDAY THAT OUT OF CONCERN OVER THE COST OF THE PLAN THE ADMINISTRATION HAS DECIDED TO INCREASE THE COPAYMENTS PATIENTS WOULD BE REQUIRED TO MAKE FOR CERTAIN OUTPATIENT MENTALHEALTH AND SUBSTANCEABUSE SERVICES TO 50 FROM 20 FOR PATIENTS IN HEALTH MAINTENANCE ORGANIZATIONS THE COPAYMENT WOULD RISE TO 25 IN THE EARLIER VERSION OF THE BILL THERE WAS TO BE NO HMO COPAYMENT SEPARATELY A GROUP OF 24 REPUBLICAN SENATORS AND 15 HOUSE MEMBERS INTRODUCED AN ALTERNATIVE HEALTHCARE PROPOSAL THAT WOULD REQUIRE ALL INDIVIDUALS TO OBTAIN HEALTH INSURANCE THE PROPOSAL WOULD ELIMINATE TAX EXCLUSIONS THAT WORKERS RECEIVE FOR EMPLOYERPROVIDED HEALTH BENEFITS IN RETURN IT WOULD PROVIDE TAX CREDITS FOR THE PURCHASE OF INSURANCE THE BILL WHOSE CHIEF AUTHOR IS SEN DON NICKLES R OKLA INCORPORATES ELEMENTS FROM BOTH MODERATE AND CONSERVATIVE PROPOSALS CONSEQUENTLY IT HAS GAINED BROAD INTEREST WITHIN THE REPUBLICAN PARTY 9311190115 931119 PRICE BATTLE LOOMS AS NEW PENTIUM PCS COST LESS AND LESS MULTIMEDIA' USERS WILL BENEFIT FROM A WAR OVER MACHINES BASED ON THE HOT INTEL CHIP BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS PREPARE FOR WAR ANOTHER PRICE WAR THAT IS AMONG PC MAKERS VYING TO WIN CUSTOMERS TO A POWERFUL NEW GENERATION OF PCS THAT USE INTEL CORP'S LATEST BRAIN CHIP PC MAKERS ARE CUTTING PRICES FASTER THAN EXPECTED ON MACHINES THAT USE THE INTEL CHIP CALLED THE PENTIUM AND MANY PREDICT AN ALLOUT PRICE BATTLE NEXT YEAR IT WILL BE A GOOD WAR INDEED FOR CONSUMERS WHO WILL SEE AFFORDABLE PRICE TAGS ON MACHINES DESIGNED TO HANDLE BETTER THE HEAVY DEMANDS OF MULTIMEDIA SOFTWARE AND SERVICES IT ALSO RAISES THE ANTE FOR SUCH COMPANIES AS INTERNATIONAL BUSINESS MACHINES CORP AND DIGITAL EQUIPMENT CORP THAT HOPE TO STEAL MARKET SHARE BY UNDERCUTTING INTELBASED MACHINES WITH LOWCOST PCS THAT WILL USE THEIR OWN CHIP DESIGNS THE MOST POSITIVE ASPECT OF ALL OF THIS IS THAT THE CONSUMER IS GOING TO BENEFIT SAYS FINIS CONNER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF DISKDRIVE MAKER CONNER PERIPHERALS INC IN THE PAST PRICES ON PCS USING NEW CHIPS STAYED HIGH AND OUT OF REACH OF THE AVERAGE BUSINESS OR HOME USER FOR SEVERAL YEARS AFTER THE CHIP'S INTRODUCTION INTEL FIRST SHIPPED THE PENTIUM THE LATEST IN A FAMILY OF MICROPROCESSORS THAT DOMINATES THE MARKET IN MAY BUT PENTIUM PC PRICES HAVE BEGUN TUMBLING THIS MONTH WITH SOME PRICES NOW AS MUCH AS 41 BELOW INITIAL LIST PRICES OF ABOUT 5000 AT THE COMDEX TRADE SHOW THIS WEEK FOR EXAMPLE DIGITAL EQUIPMENT DISPLAYED A 3999 PENTIUM MACHINE WITH GOODIES SUCH AS A COMPACTDISK DRIVE MAILORDER HEAVYWEIGHT GATEWAY 2000 HAS UNVEILED A MACHINE FOR 3595 INCLUDING A COLOR MONITOR WHILE IBM'S AMBRA COMPUTER CORP UNIT ANNOUNCED A LOWEND 2799 PENTIUM MACHINE INCLUDING A MONITOR ALTHOUGH THE VAST MAJORITY OF PENTIUM PCS BEING MANUFACTURED BY SOME 100 VENDORS ARE NOW AIMED AT BUSINESS USERS AMERICAN TELEPHONE & TELEGRAPH CO'S NCR UNIT HAS BEGUN SHIPPING ITS PENTIUM MACHINES TO CONSUMER ELECTRONICS OUTLETS AND COMPUTER SUPERSTORES PACKARD BELL PLANS TO SELL PENTIUM MACHINES IN CONSUMER CHANNELS BY THE END OF THE YEAR AND AST RESEARCH INC SAYS IT HAS BEEN APPROACHED BY SAM'S WHOLESALE CLUB ABOUT DELIVERING PENTIUM PCS TO THE CONSUMERWAREHOUSE CHAIN NEXT YEAR AT THEIR PRESENT RATE OF DESCENT ANALYSTS BELIEVE PENTIUM PC PRICES WILL FALL AS LOW AS 2000 NEXT YEAR WE THINK PENTIUM CAN EVENTUALLY BECOME THE TOPSELLING MICROPROCESSOR SAYS MAL D RANSOM MARKETING VICE PRESIDENT FOR PACKARD BELL A BIG SELLER OF PCS IN MASSMARKET OUTLETS SUCH AS CIRCUIT CITY THE BIGGEST FACTOR DRIVING PENTIUM PRICES DOWN IS THE VYING AMONG PC MAKERS TO GRAB MARKET SHARE EARLY IN THE NEWPRODUCT CYCLE INTEL IS FUELING THE TREND BY RAPIDLY INCREASING ITS PRODUCTION OF THE CHIPS WHICH WERE IN SHORT SUPPLY THIS SUMMER HAVING SHIPPED FEW PENTIUM CHIPS IN THE SECOND QUARTER INTEL SHIPPED ABOUT 50000 CHIPS IN THE THIRD QUARTER AND IS EXPECTED TO SHIP AS MANY AS 175000 IN THE CURRENT QUARTER ACCORDING TO MIKE FEIBUS EDITOR OF MICROSYSTEMS INSIDER AN INDUSTRY NEWSLETTER A RELATIVE FLOOD OF INTEL CHIPS IS SCHEDULED FOR NEXT YEAR INTEL IN A COMPANY NEWSLETTER QUOTES AN ESTIMATE BY MERRILL LYNCH & CO ANALYST THOMAS KURLACK THAT IT WILL SHIP SIX MILLION PENTIUM CHIPS NEARLY THREE TIMES WHAT MANY OTHER ANALYSTS HAD EXPECTED FALLING CHIP PRICES AREN'T THE ONLY THING DRIVING DOWN PENTIUM PC PRICES PRICES ARE DROPPING FOR OTHER PARTS FOUND IN HIGHEND PCS SUCH AS THE BIG COLOR DISPLAYS SOUND CARDS AND COMPACTDISK DRIVES THAT ARE ESSENTIAL IN RUNNING THE FULLMOTION VIDEO THAT'S COMMON IN MULTIMEDIA SOFTWARE THE QUICK PRICE DROPS ARE JUST WHAT INTEL WANTED IN INTERVIEWS THIS YEAR INTEL'S CHIEF EXECUTIVE ANDREW GROVE SAID HE PLANNED TO PUSH THE PENTIUM INTO THE MAINSTREAM PC MARKET MUCH FASTER THAN WITH PREVIOUS NEW GENERATIONS A BIG MOTIVATION FOR INTEL IT FACES A BIG MARKETING ASSAULT NEXT YEAR BY CHIP MAKERS THAT HOPE TO GRAB SOME OF ITS HIGHLY LUCRATIVE MARKET THAT THREAT WAS PERHAPS THE BIGGEST THEME OF THE COMDEX SHOW WITH COMPANIES ADVERTISING THE RELATIVE MERITS OF THEIR CHIPS ON PLAQUES ON TAXIS BUSES AND KIOSKS ON HUGE BANNERS ON THE CONVENTION HALL'S FACADE AND IN HARDSELL PITCHES IN BOOTHS RIVALS SUCH AS ADVANCED MICRO DEVICES INC AND CYRIX CORP TOUTED NEW CLONES THAT ARE THREATENING INTEL'S HIGHLY PROFITABLE BUSINESS IN OLDERGENERATION 486 CHIPS WHILE DIGITAL EQUIPMENT AND SILICON GRAPHICS INC PUSHED THEIR OWN MICROPROCESSOR DESIGNS AS ALTERNATIVES FOR PCS THREE OTHER RIVALS IBM APPLE COMPUTER INC AND MOTOROLA INC HEAVILY TOUTED A CHIP CALLED POWERPC THAT THEY SAY WILL GO INTO PCS NEXT YEAR THAT WILL BE COST LESS AND PERFORM BETTER THAN PENTIUM MACHINES FOR HIS PART MR GROVE DOWNPLAYS THE THREAT SAYING HIS COMPANY WAS SIMPLY USING ITS HUGE PRODUCTION CAPACITY FOR THE PENTIUM HE PREDICTS POWERPC WON'T HAVE A MARKET PRESENCE IF EVER FOR YEARS ADDING THAT THE COMPANY THAT CONTROLS OUR DESTINY IS US INDEED MOST ANALYSTS DON'T EXPECT ALTERNATIVE CHIPS TO MAKE MUCH OF A DENT SOON IN INTEL'S MARKET SHARE MICROSYSTEMS INSIDER THE NEWSLETTER ESTIMATES THAT NONINTELCOMPATIBLE CHIPS WHICH NOW GO INTO ROUGHLY 15 OF PCS SOLD WILL CAPTURE ONLY 20 OF THE PCMICROPROCESSOR MARKET IN 1998 STILL COUNTERS PAUL LEDAK A POWERPC MANAGER FOR IBM'S MICROPROCESSOR BUSINESS INTEL IS IN A POSITION OF STRENGTH BUT THEY CAN ONLY GO DOWN OTHER INDUSTRY EXECUTIVES SAY INTEL DESPITE ITS SWAGGER IS TAKING THE THREAT VERY SERIOUSLY INTEL HAS TO BE WORRIED ABOUT ANYTHING THAT THREATENS THEIR BEING THE PROCESSOR OF CHOICE SAYS FRED GIBBONS CHAIRMAN AND CHIEF EXECUTIVE OF SOFTWARE PUBLISHING CORP INTEL'S STRATEGY ANALYSTS SAY IS TO FLOOD THE MARKET WITH PENTIUM CHIPS BEFORE POWERPC CAN GET OUT OF THE GATE INDEED MR GROVE IN THE PAST HAS SAID THAT THE COMPANY WOULD CUT ITS CONSIDERABLE PROFIT MARGINS RATHER THAN GIVE UP MARKET SHARE THIS WOULD SQUEEZE A COMPETITOR SUCH AS APPLE WHICH IS EKING BY ON RAZORTHIN PROFITS THEY WANT TO CUT IT POWERPC OFF AT THE KNEES IF THEY CAN SAYS RICHARD ZWETCHKENBAUM AN ANALYST AT INTERNATIONAL DATA CORP ADDS MR CONNER THEY'RE NOT GOING TO GIVE AWAY THEIR MARKET SHARE WITHOUT A FIGHT SOME 40 MILLION INTELCOMPATIBLE MICROPROCESSORS MOSTLY 486 CHIPS ARE EXPECTED TO BE SHIPPED WORLDWIDE THIS YEAR SO PENTIUM CHIPS STILL WON'T BECOME DOMINANT SOON BUT ANALYSTS FOR INTERNATIONAL DATA SAY THAT PENTIUM WITH ITS CURRENT MOMENTUM COULD OVERTAKE THE 486 AS THE PC CHIP OF CHOICE IN 1996 WHETHER PENTIUM THE POWERPC OR SOME OTHER CONTENDER FOR THE HEARTS AND MINDS OF PC USERS EMERGES VICTORIOUS ALL CAMPS AGREE THAT THE CONSUMER STANDS TO GAIN FROM THE IMPENDING MICROPROCESSOR WARS MUCH AS CONSUMERS WERE BIG WINNERS IN LAST YEAR'S BLOODY PC PRICE WARS IN THE END SAYS BRUCE L CLAFLIN PRESIDENT OF IBM'S IBM PERSONAL COMPUTER CO UNIT IT'S GOING TO BE GREAT FOR THE CONSUMER BECAUSE IT WILL OFFER MORE CHOICE 9311190114 931119 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 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 34 DAYS 306 35 TO 59 DAYS 332 60 TO 89 DAYS 330 90 TO 159 DAYS 332 160 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 341 60 DAYS 340 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 271 TWO MONTHS 271 THREE MONTHS 284 SIX MONTHS 299 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 330 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 325 60 DAYS 325 90 DAYS 325 120 DAYS 325 150 DAYS 325 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 7/16 3 5/16 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 7/16 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 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 707 60 DAYS 715 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 704 60 DAYS 714 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 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 9311190113 931119 ECONOMY ANALYSTS AGREE IT'S UNLIKELY OPEC CAN CONTROL DECLINING WORLDOIL PRICES BY ALLANNA SULLIVAN AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ISN'T LIKELY TO BE ABLE TO DO MUCH ABOUT THE PLUNGE IN OIL PRICES WHICH ARE NOW AT THEIR LOWEST LEVEL IN THREE YEARS BECAUSE OF SLUGGISH DEMAND AND GROWING NONOPEC PRODUCTION THOUGH PRESSURE IS ON OPEC MINISTERS WHO MEET NEXT WEEK IN VIENNA TO CURB PRODUCTION ANALYSTS SAY OILPRICE BEHAVIOR NOW GOES BEYOND OPEC'S ABILITY TO CONTROL IT INDEED PRICES HAVE DROPPED AS MUCH AS 2 A BARREL SINCE SEPTEMBER WHEN OPEC MINISTERS LAST MET AND PUT WHAT WAS WIDELY VIEWED AS A REASONABLE CEILING ON THEIR OUTPUT OPEC DID EVERYTHING SENSIBLE IT COULD DURING ITS LAST MEETING IN SEPTEMBER SAID BERNARD PICCHI AN OIL ANALYST FOR KIDDER PEABODY IN NEW YORK THE MINISTERS BROUGHT KUWAIT BACK INTO THE FOLD PUT THEIR PRODUCTION CEILING AT A REASONABLE LEVEL AND KEPT OUTPUT CLOSE TO THE CEILING AND STILL OIL PRICES HAVE WEAKENED OPEC STILL CAN HAVE AN IMPACT ON THE OIL MARKET OF COURSE EVEN IF IT CANNOT CONTROL PRICES OIL EXPERTS GENERALLY AGREE THAT A FAILURE BY THE OPEC OIL MINISTERS TO MAKE AT LEAST TOKEN CUTS IN THEIR PRODUCTION FOR THE REST OF THE FOURTH QUARTER LIKELY WILL BE A PSYCHOLOGICAL BLOW TO THE FRAGILE OIL MARKET THAT MAY SEND A SIGNAL TO THE MARKET THAT THEY ARE NOT PREPARED TO DEFEND THE PRICE OF OIL SAID MICHAEL ROTHMAN A FIRST VICE PRESIDENT OF COMMODITY RESEARCH FOR MERRILL LYNCH & CO FURTHER PROOF OF THE PSYCHOLOGICAL IMPACT OPEC CAN HAVE ON THE MARKET CAME WEDNESDAY WHEN WORLDOIL PRICES RALLIED SHARPLY AFTER TWO OF THE 12 OIL MINISTERS SUGGESTED THE NEED FOR PRODUCTION CUTBACKS BUT YESTERDAY EXCEPT FOR A REPORT IN THE TEHRAN TIMES ALSO URGING PRODUCTION DISCIPLINE THERE WAS LITTLE FURTHER OPEC NEWS AND PRICES FELL ERASING MOST OF WEDNESDAY'S GAINS IN FUTURES TRADING CRUDE OIL FOR JANUARY DELIVERY DROPPED 32 CENTS TO SETTLE AT 1710 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE EVIDENCE IS MOUNTING NEVERTHELESS THAT PETROLEUM PRICES COULD CONTINUE TO FALL EVEN IN THE UNLIKELY EVENT THE OPEC MINISTERS REACH AN AGREEMENT ON NEW PRODUCTION CURBS THAT IS BECAUSE OPEC'S PRODUCTION CURRENTLY AROUND 247 MILLION BARRELS A DAY OR ONLY A LITTLE MORE THAN ONETHIRD OF THE WORLD'S TOTAL CRUDEOIL OUTPUT IS ONLY ONE OF MANY REASONS FOR THIS YEAR'S NEARCOLLAPSE IN PETROLEUM PRICES THERE ARE A NUMBER OF FACTORS BEHIND THE WEAKNESS IN THE OIL MARKET SAID MERRILL LYNCH'S MR ROTHMAN OIL DEMAND GROWTH APPEARS TO BE EVEN SLOWER THAN WE EXPECTED AND THE WEAKNESS IN WORLD ECONOMIC ACTIVITY IS GREATER THAN WE'VE BEEN EXPECTING THIS YEAR'S OIL DEMAND WAS WIDELY OVERESTIMATED EVEN BY OPEC ITSELF EARLIER THIS WEEK OPEC'S VIENNA HEADQUARTERS LOWERED ITS ESTIMATE OF DEMAND FOR ITS OWN OIL PLUS WITHDRAWALS FROM WORLDOIL INVENTORIES TO 25140000 BARRELS A DAY FOR THE FOURTH QUARTER THAT IS DOWN FROM ITS PREVIOUS PUBLISHED FORECAST OF 25420000 BARRELS A DAY FOR THE FINAL 1993 QUARTER ALSO OIL SUPPLIES FROM NONOPEC PRODUCING AREAS ARE POURING INTO THE MARKET IN INCREASING VOLUMES NORTH SEA OUTPUT HAD BEEN DECLINING UNTIL 1990 BUT SINCE THEN HAS GROWN BY 700000 BARRELS DAILY TO 43 MILLION BARRELS A DAY ONE REASON IS A CHANGE IN BRITAIN'S TAX LAWS EARLIER THIS YEAR THAT ENCOURAGED PRODUCERS TO GO BACK AND REWORK EXISTING OIL FIELDS NEW OIL FIELDS ALSO ARE COMING INTO PRODUCTION IN THE NORTH SEA THE SCOTT FIELD BEGAN PRODUCING IN SEPTEMBER EARLIER THAN EXPECTED IT SOON WILL BE PUMPING AT PEAK CAPACITY OF 180000 BARRELS A DAY THE EAST BRAE FIELD WILL COME ON LINE BY YEAR END AT 120000 BARRELS A DAY AND THE SMALLER GRYPPHON FIELD WILL SOON PUT OUT AS MUCH AS 50000 BARRELS A DAY IN OTHER LESS WELLKNOWN PRODUCING AREAS VOLUMES ALSO ARE INCREASING IN THE PERSIAN GULF REGION OMAN INCREASED ITS OUTPUT TO 800000 BARRELS A DAY IN JULY FROM 750000 A DAY EVEN TINY YEMEN IS BRINGING ON A NEW FIELD WITH AN OUTPUT OF AS MUCH AS 70000 BARRELS A DAY AND ALL OF IT IS GOING INTO THE EXPORT MARKET BECAUSE THERE IS LITTLE DOMESTIC DEMAND MR PICCHI OF KIDDER PEABODY SAID ALSO OFTEN OVERLOOKED IS THE RELATIVELY HIGH RATE OF OIL EXPORTS FROM THE FORMER SOVIET UNION ALTHOUGH PRODUCTION IN RUSSIA AND THE OTHER FORMER SOVIET REPUBLICS IS DROPPING FAST CONSUMPTION IS FALLING EVEN FASTER AS A RESULT EXPORT VOLUMES REMAIN GREATER THAN PREDICTED IN APRIL FOR EXAMPLE NATWEST WASHINGTON ANALYSIS PREDICTED EXPORTS FROM THE FORMER SOVIET UNION WOULD DROP TO 19 MILLION BARRELS A DAY IN 1993 NOW NATWEST ANALYSTS ESTIMATE THAT OIL EXPORTS FROM RUSSIA AND THE OTHER REPUBLICS WILL AVERAGE 22 MILLION BARRELS A DAY THIS YEAR BUT EVEN IF OPEC ISN'T DUE THE BLAME OR CREDIT FOR THE OILPRICE FALL A LACK OF ACTION ON ITS PART WILL ACCELERATE ANY FURTHER DECLINES THE GLOBAL ECONOMIC SITUATION REALLY DOESN'T HAVE ANYTHING TO DO WITH OPEC SAID KENNETH HALEY AN ECONOMIST FOR CHEVRON CORP BUT BECAUSE OPEC IS THE ONLY GROUP WILLING TO TWIST THE KNOB IT'S BECOME THE SWING PRODUCER FOR THE WORLD 9311190112 931119 INTERNATIONAL MERRETT GROUP TELLS LLOYD'S OF LONDON US GROUP POSTPONED INVESTMENT PLAN BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON MERRETT GROUP ONE OF THE MAIN UNDERWRITING GROUPS IN THE 305YEAROLD LLOYD'S OF LONDON INSURANCE MARKET TOLD LLOYD'S AGENTS THAT A TEAM OF US FINANCIAL GIANTS HAS POSTPONED PLANS TO TAKE A STAKE IN MERRETT NOW JUST AS LLOYD'S SEEMED TO BE MAKING PROGRESS IN SORTING OUT ITS DIFFICULTIES IT FACES THE EMBARRASSING PROSPECT OF ITS FIFTHLARGEST UNDERWRITING GROUP BEING PUSHED INTO LIQUIDATION MERRETT HAD BEEN COUNTING ON FUNDS FROM THE US GROUP TO COMPENSATE FOR THE FALL IN SUPPORT FROM OTHER INVESTORS THE US GROUP INCLUDED TRAVELERS CORP MARSH & MCLENNAN COS AND JP MORGAN & CO HOWEVER A MERRETT SPOKESMAN SAID TRAVELERS RECENTLY ACQUIRED BY PRIMERICA CORP THE FINANCIALSERVICES COMPANY DECIDED TO WITHDRAW FROM THE PROJECT THAT PROMPTED THE OTHER PARTNERS TO PUT THE PLAN ON ICE TRAVELERS OFFICIALS IN HARTFORD CONN HAD NO COMMENT ATTEMPTS BY MERRETT TO FORGE AN ALTERNATIVE LINKUP WITH ANOTHER LLOYD'S UNDERWRITING GROUP AJ ARCHER HOLDINGS PLC ALSO RAN INTO DIFFICULTIES YESTERDAY LLOYD'S AGENTS WERE TRYING TO PATCH TOGETHER A PLAN ALLOWING AT LEAST SOME OF MERRETT'S UNDERWRITING SYNDICATES TO STAY IN BUSINESS IF MERRETT FAILS TO FIND SUFFICIENT CAPITAL BACKING A LLOYD'S SPOKESMAN SAID WE WILL DO WHATEVER WE CAN TO ENSURE AN ORDERLY RUNOFF MERRETT'S PROBLEMS COME AT A TRICKY MOMENT FOR LLOYD'S WHICH ISN'T A COMPANY BUT RATHER A MARKET PLANS FOR BOOSTING THE MARKET'S CAPITAL BASE BY ATTRACTING OUTSIDE CAPITAL IN THE FORM OF LIMITEDLIABILITY FUNDS ARE GOING WELL BUT AREN'T YET COMPLETED NEGOTIATIONS OVER A BAILOUT TO HELP EXISTING INVESTORS MEET HEAVY PAST INSURANCE CLAIMS ARE NEARING A CONCLUSION BUT IMPORTANT DETAILS STILL NEED TO BE IRONED OUT INVESTORS USED TO BE SUBJECT TO UNLIMITED PERSONAL LIABILITY DAVID ROWLAND LLOYD'S CHAIRMAN SAID THE INSURANCE MARKET PLANS TO PRESENT WITHIN TWO TO THREE WEEKS A PLAN TO COMPENSATE INDIVIDUAL INVESTORS PARTLY FOR PAST LOSSES HE DECLINED TO PROVIDE DETAILS OF THE COMPENSATION PACKAGE WHICH WOULD BE FUNDED FROM LLOYD'S CENTRAL FUND AND CONTRIBUTIONS FROM AGENTS MR ROWLAND SAID ALL INVESTORS IN SYNDICATES UNDER INVESTIGATION FOR PAST LOSSES WOULD RECEIVE SOME COMPENSATION HOWEVER THOSE INVESTORS THAT HAD JOINED LEGAL CLAIMS AGAINST LLOYD'S OR ITS AGENTS MIGHT RECEIVE A LARGER PAYOUT HE SAID MR ROWLAND WAS IN TORONTO AS PART OF A SERIES OF NORTH AMERICAN TRIPS TO CALM JITTERY LLOYD'S CUSTOMERS HE SAID THE COMPENSATION PACKAGE IS AIMED IN PART AT PUTTING THE INSURANCE MARKET'S TROUBLES BEHIND IT IN AN EFFORT TO REGAIN CUSTOMER CONFIDENCE LLOYD'S HAS ACCUMULATED LOSSES OF ABOUT 6 BILLION 889 BILLION IN THE PAST FOUR YEARS IN PRACTICAL TERMS MERRETT'S COLLAPSE IF IT TAKES PLACE WOULD CREATE PROBLEMS BOTH FOR INSURANCE BROKERS AND THEIR CLIENTS AND FOR THE INVESTORS KNOWN AS NAMES WHOSE CAPITAL HAS BEEN USED TO BACK POLICIES UNDERWRITTEN BY ITS SYNDICATES UNTIL THIS MONTH BROKERS HAD BEEN PLACING BUSINESS WITH MERRETT IN THE EXPECTATION THAT ITS SYNDICATES WOULD CONTINUE OPERATING NEXT YEAR SOME OF THIS MAY NOW HAVE TO BE UNWOUND OR PLACED ELSEWHERE 9311190111 931119 LETTERS TO THE EDITOR GINGRICH REVOLUTIONARY CENTRIST' PAUL GIGOT'S EXCELLENT OCT 22 POTOMAC WATCH COLUMN WHY LIBERALS REALLY HATE NEWTONIAN POLITICS SPECULATES ON WHAT POLITICAL LABELS MIGHT MOST APPROPRIATELY BE PLACED ON REP NEWT GINGRICH R GA HE POINTS OUT THAT MOST LABELS NOW THROWN AT MR GINGRICH BOMBTHROWER ARCHCONSERVATIVE NIHILIST ETC FIND THEIR ROOTS AMONG LIBERAL AND LEFTWING CRITICS WHO CONSIDER THE GEORGIA REPUBLICAN THEIR ULTIMATE NEMESIS AS A MATTER OF TRUTHINLABELING THE CHOICE OF A PROPER LABEL FOR NEWT GINGRICH REQUIRES A BIT OF SEMANTIC INNOVATION THIS HYPERACTIVE RIGHTOFCENTER LAWMAKER WHO WILL SOON BE PARTY LEADER OF THE HOUSE REPUBLICANS SHOULD HENCEFORTH BE CALLED A REVOLUTIONARY CENTRIST ANOTHER HARDTOPEG LEADER TO WHOM THIS LABEL OR THE SIMILAR TERM RADICAL CENTRIST WOULD COMFORTABLY APPLY IS RUSSIAN PRESIDENT BORIS YELTSIN A RADICAL REFORMER WHO IS QUITE CLEARLY NEITHER LEFT NOR RIGHT ON RUSSIA'S COMPLEX POLITICAL SPECTRUM BACK TO REP GINGRICH IT GOES WITHOUT SAYING THAT THE MAN IS SURELY NOT OF THE POLITICAL OR IDEOLOGICAL LEFT EITHER THE LIBERAL OR ILLIBERAL LEFT HIS LOUDLY PROCLAIMED DRIVING AMBITION IS TO DISMANTLE WHAT HE CALLS THE AMERICAN WELFARE STATE BUT NOR IS HE A TRADITIONAL CONSERVATIVE OF THE ULTRA OR ARCH OR RIGHTWING VARIETIES HE WANTS TO TURN ALMOST EVERYTHING INSIDEOUT AND UPSIDEDOWN AND TO REMAKE THE AMERICAN SYSTEM NOT SO MUCH IN THE WAY IT USED TO BE CONSERVATIVE OR TO ATTACK IT IN A BLINDLY DESTRUCTIVE WAY NIHILIST BUT TO RESHAPE IT IN THE NEWTONIAN WAY HE FERVENTLY BELIEVES IT OUGHT TO BE REVOLUTIONARY WHILE THE LABELS REVOLUTIONARY CENTRIST AND RADICAL CENTRIST ARE IN TODAY'S POLITICAL LEXICON THEY OUGHT TO BE THERE FROM THIS DAY FORWARD WITHOUT THESE NEW FRAMES OF REFERENCE THERE WILL BE NO TRULY DESCRIPTIVE LABELS EITHER FOR THE RADICAL CENTRIST LEADER OF RUSSIA'S SMALLD DEMOCRATS OR FOR THE NEW REVOLUTIONARY CENTRIST LEADER OF THE HOUSE REPUBLICANS 9311190109 931119 RAM MOBILE DATA CONTRACT NEW YORK RAM MOBILE DATA USA LP SAID IT SIGNED AN AGREEMENT TO PROVIDE EXCLUSIVE WIRELESS DATA COMMUNICATIONS SERVICE TO TRANSUS INC A TRUCKING FIRM TERMS WEREN'T DISCLOSED RAM MOBILE DATA USA LP IS A JOINT VENTURE BETWEEN RAM BROADCASTING AND BELLSOUTH CORP 9311190108 931119 FINANCING BUSINESS ASHLAND OIL INC ASHLAND OIL INC ASHLAND KY SAID IT FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO ALLOW FOR FUTURE OFFERINGS OF AN ADDITIONAL 250 MILLION IN MEDIUMTERM NOTES THE ENERGY COMPANY PREVIOUSLY FILED SHELF REGISTRATIONS FOR 750 MILLION IN MEDIUMTERM NOTES 6984 MILLION OF WHICH HAVE BEEN SOLD THE COMPANY PLANS TO OFFER THE ADDITIONAL MEDIUMTERM NOTES AS SEPARATE SERIES OF SENIOR DEBT IN AMOUNTS TO BE DETERMINED AT THE TIME OF OFFERING CS FIRST BOSTON WILL ACT AS LEAD AGENT THE COMPANY SAID NET PROCEEDS FROM THE OFFERINGS WOULD BE USED FOR DEBT REFINANCING AND GENERAL CORPORATE PURPOSES 9311190107 931119 GSA'S REVIEW FINDS SUSPICIOUS' CASES IN BUILDING PROJECTS WASHINGTON THE GENERAL SERVICES ADMINISTRATION'S REVIEW OF 208 GOVERNMENT BUILDING PROJECTS HAS UNCOVERED A HOST OF SUSPICIOUS MATTERS AND HAS YIELDED SAVINGS OF SEVERAL HUNDRED MILLION DOLLARS GSA ADMINISTRATOR ROGER JOHNSON TOLD CONGRESS THE GSA A GOVERNMENT HOUSEKEEPING AGENCY ANNOUNCED IN SEPTEMBER A TIMEOUT AND REVIEW OF NEW CONSTRUCTION PROJECTS IN AN EFFORT TO ENSURE THAT TAXPAYER FUNDS ARE BEING WISELY SPENT MR JOHNSON TOLD THE SENATE SUBCOMMITTEE ON WATER RESOURCES TRANSPORTATION PUBLIC BUILDINGS AND ECONOMIC DEVELOPMENT THAT THE REVIEW ALREADY HAS ACCOMPLISHED SAVINGS OF SEVERAL HUNDREDS OF MILLIONS OF DOLLARS AND PROMISES TO ACHIEVE MORE HE SAID SAVINGS WILL COME BY SCRAPPING PROJECTS AND BY RESTRUCTURING FINANCING METHODS THE GSA CHIEF SAID ALL 208 PROJECTS UNDER REVIEW ARE SUSPICIOUS IN ONE WAY OR ANOTHER THE GOOD NEWS HE ADDED IS THERE IS A GREAT DEAL OF MONEY TO BE SAVED IN THE FEDERAL BUILDINGS PROGRAM MR JOHNSON TOLD THE SUBCOMMITTEE OF SUCH THINGS AS A FEDERAL PARKING LOT PROJECT IN AN IOWA TOWN DESIGNED TO PROVIDE FOR 150200 PARKING SPACES ALTHOUGH THERE ARE NO MORE THAN 20 FEDERAL EMPLOYEES IN THE AREA A COURTHOUSE PROJECT COSTING NEARLY 50 MILLION IN AN INDIANA TOWN WHERE THE MAGISTRATES ALL HAVE SERVED NOTICE THEY WON'T WORK IN THE BUILDING AND A COURTHOUSE PROJECT IN AN ARIZONA TOWN WHERE NO JUDGE IS PRESENT LOOKING AHEAD MR JOHNSON SAID GSA WILL ASSEMBLE A SPECIAL TEAM TO NEGOTIATE WITH PRIVATESECTOR PARTIES ON CONSTRUCTION PROJECTS 9311190106 931119 CBOT LOOKS TO SOLVE CROWDING BY BUYING AN ADJACENT BUILDING CHICAGO THE CHICAGO BOARD OF TRADE SAID IT WOULD TRY AGAIN TO SOLVE ITS CHRONIC SPACE PROBLEM BY PAYING 2 MILLION FOR AN OPTION TO BUY AN ADJACENT BUILDING AND ASKING ITS MEMBERS TO APPROVE THE PURCHASE FOR AN ADDITIONAL 24 MILLION THE EXCHANGE THE WORLD'S BIGGEST FUTURES MARKET HAS OUTGROWN THE TRADING FLOORS IN ITS VENERABLE ARTDECO BUILDING TRADERS THERE HAVE LONG COMPLAINED OF CROWDING YET A YEAR AGO CBOT MEMBERS REJECTED A PLAN TO BUY THE BUILDING IMMEDIATELY TO THE EAST AT 327 S LASALLE ST BY A 587396 MARGIN CBOT CHAIRMAN PATRICK ARBOR SAID THE MAIN REASON THAT PLAN WAS DEFEATED WAS THAT IT CALLED FOR AN INCREASE IN TRADING FEES TO PAY FOR THE PURCHASE THE NEW PLAN INCLUDES NO FEE INCREASE HE SAID CBOT MEMBERS WILL VOTE ON IT IN JANUARY IF THE PURCHASE IS APPROVED MR ARBOR SAID HIS EXCHANGE WILL DEMOLISH THE BUILDING NOW STANDING ON THE SITE AND BUILD A STATEOFTHEART TRADING FACILITY 9311190105 931119 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ARIZONA PUBLIC SERVICE CO A SHELF OFFERING FOR UP TO 125 MILLION OF CUMULATIVE PREFERRED STOCK ASHLAND OIL INC A SHELF OFFERING FOR 250 MILLION OF DEBT SECURITIES VIA CS FIRST BOSTON SALOMON BROTHERS INC AND PRUDENTIAL SECURITIES INC CALIFORNIA MICROWAVE INC AN OFFERING OF 50 MILLION OF 10YEAR CONVERTIBLE SUBORDINATED NOTES VIA BEAR STEARNS & CO AND OPPENHEIMER & CO SMITH'S FOOD & DRUG CENTERS INC A SHELF OFFERING FOR UP TO 300 MILLION OF PASS THROUGH CERTIFICATES VIA MORGAN STANLEY & CO GOLDMAN SACHS & CO AND SALOMON BROTHERS 9311190104 931119 SOROS GROUP HOLDS CORTEX STAKE WASHINGTON A GROUP INCLUDING INVESTOR GEORGE SOROS SAID IT HOLDS AN 181 STAKE IN CORTEX PHARMACEUTICALS INC AN IRVINE CALIF PHARMACEUTICAL RESEARCH CONCERN IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE GROUP SAID IT SPENT 55 MILLION TO ACQUIRE 55 MILLION CORTEX SHARES THE GROUP SAID IT ACQUIRED THE STAKE FOR INVESTMENT PURPOSES A CORTEX EXECUTIVE SAID THE PURCHASE WAS PART OF A 138 MILLION PRIVATE PLACEMENT WITH EIGHT OR NINE INSTITUTIONAL INVESTORS THE INVESTORS ALL SIGNED A BINDING COMMITMENT TO PURCHASE THE SHARES HE SAID 9311190103 931119 MARKETING & MEDIA LONGTERM CONTRACTS GO TO SONY AIDES IN FILM MUSIC ELECTRONIC PUBLISHING BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SONY CORP IN A MOVE TO SIGNAL ITS COMMITMENT TO THE ENTERTAINMENT INDUSTRY AND REASSURE HOLLYWOOD OF ITS MANAGEMENT STABILITY HAS SIGNED NEW LONGTERM CONTRACTS WITH TOP EXECUTIVES OF ITS FILMED ENTERTAINMENT MUSIC AND ELECTRONIC PUBLISHING UNITS OVER THE LAST SIX MONTHS THE SONY CORP OF AMERICA UNIT SAID IT HAS COMPLETED AGREEMENTS RANGING FROM FOUR TO SEVEN YEARS WITH MORE THAN 25 TOP EXECUTIVES INCLUDING ITS TOPRANKING ENTERTAINMENT EXECUTIVE PETER GUBER 51 YEARS OLD CHAIRMAN OF SONY PICTURES ENTERTAINMENT AND TOMMY MOTTOLA PRESIDENT AND CHIEF OPERATING OFFICER OF SONY MUSIC SONY BELIEVES IT HAS ONE OF THE STRONGEST MANAGEMENT TEAMS IN ALL ASPECTS OF ITS SOFTWARE BUSINESSES INCLUDING MOTION PICTURES MUSIC AND ELECTRONIC PUBLISHING SAID MICHAEL P SCHULHOF CHIEF EXECUTIVE OFFICER OF SONY CORP OF AMERICA SONY'S TOKYOBASED PARENT CONTINUES TO BE ADVERSELY AFFECTED BY INTENSE COMPETITION IN ITS ELECTRONICS BUSINESSES AND THE APPRECIATION OF THE YEN AGAINST OTHER CURRENCIES SONY HAS INVESTED MORE THAN 8 BILLION TO DIVERSIFY INTO THE ENTERTAINMENT BUSINESS OVER THE LAST FEW YEARS TAKING ON CONSIDERABLE DEBT THAT COMBINED WITH OTHER FACTORS HAS MADE IT TOUGH TO EARN A RETURN ON THAT INVESTMENT THOUGH SONY SAYS IT IS A LONGTERM PLAYER IN THE ENTERTAINMENT BUSINESS IT IS LOOKING AT WAYS TO RAISE OUTSIDE CAPITAL AND SAYS IT HAS BEEN APPROACHED BY A NUMBER OF COMPANIES INTERESTED IN INVESTING IN ITS ENTERTAINMENT OPERATIONS LAST MONTH MR SCHULHOF SAID WE HAVE AN APPETITE TO GO FORWARD AND WOULD LOVE TO FIND TELECOMMUNICATIONS PARTNERS TO HELP US BROADEN OUR ELECTRONIC DISTRIBUTION REACH SONY'S VOTE OF CONFIDENCE IN ITS US ENTERTAINMENT MANAGERS COMES AFTER A TROUBLESOME PERIOD THE STUDIO OPERATIONS HAVE SUFFERED A RANGE OF PROBLEMS FROM THE FLOP OF COLUMBIA PICTURES' BIGBUDGET THE LAST ACTION HERO TO WIDESPREAD REPORTS THAT SOME STUDIO EXECUTIVES WERE INVOLVED IN LAST SUMMER'S HOLLYWOOD PROSTITUTION SCANDAL MICHAEL JACKSON ONE OF THE COMPANY'S TOP RECORDING STARS IS MIRED IN HIS OWN SCANDAL RAISING QUESTIONS ABOUT THE FUTURE OF SONY'S 50 MILLIONPLUS INVESTMENT IN HIS PRODUCTION CONCERN AT THE SAME TIME THE COMPANY CURRENTLY HAS THE TOP SHARE OF THE BOX OFFICE WITH MORE THAN A 20 MARKET SHARE FROM ITS TWO STUDIOS ON A DOLLAR BASIS MOVIEGROUP SALES WERE UP 22 IN SONY'S SECONDQUARTER ENDED SEPT 30 MUSICGROUP SALES ROSE 30 AND ELECTRONICS SALES CLIMBED 17 IN AN INDUSTRY WHERE FEW STUDIOS CAN BOAST MANAGEMENT STABILITY SONY HAS HAD ITS SHARE OF TURNOVER SONY HIRED MR GUBER AND HIS PRODUCER PARTNER JON PETERS TO RUN THE STUDIO OPERATIONS WHEN IT ACQUIRED COLUMBIA PICTURES ENTERTAINMENT IN 1989 BUT MR PETERS LEFT SHORTLY THEREAFTER OTHER TOP EXECUTIVES LEFT AS WELL IN THE FIRST TWO YEARS INCLUDING THE HEADS OF THE COLUMBIA STUDIO AND THE TELEVISION OPERATIONS THE TRISTAR PICTURES UNIT HAS FOR A YEAR BEEN UPSET BY RUMORS THAT ITS CHIEF MIKE MEDAVOY IS ON HIS WAY OUT AND MR GUBER'S LONGTERM PLANS HAVE ALSO BEEN UNCLEAR MR GUBER ACKNOWLEDGED YESTERDAY THAT HE HAS EXTENDED HIS AGREEMENT FOR MORE THAN FIVE YEARS MR MEDAVOY HOWEVER HAS NOT EXTENDED HIS AGREEMENT THERE HAVE LONG BEEN REPORTS OF FRICTION BETWEEN HIM AND MR GUBER PARTICULARLY DURING MR MEDAVOY'S EARLY DAYS IN THE JOB WHEN TRISTAR HAD A DEARTH OF HITS AND A THIN PRODUCTION SCHEDULE RECENTLY HOWEVER ITS OPERATIONS HAVE IMPROVED WITH SUCH SUCCESSES AS SLEEPLESS IN SEATTLE MR MEDAVOY SAID YESTERDAY THAT HIS CURRENT CONTRACT DOESN'T EXPIRE UNTIL MARCH OF 1995 AND HE HASN'T MADE A DECISION TO EXTEND IT FURTHER BECAUSE HE IS NOT LOOKING THAT FAR AHEAD AT PRESENT HE NOTED THE STUDIO HAS A STRONG SLATE OF FUTURE FILMS WITH FIVE CURRENTLY IN PRODUCTION AT SONY OFFICIALS INDICATED THE CHOICE IS MR MEDAVOY'S AND THE COMPANY IS PREPARED TO EXTEND HIS AGREEMENT SONY DID NOT SIGN A NEW AGREEMENT WITH MARK CANTON HEAD OF THE COLUMBIA PICTURES STUDIO BUT MR CANTON STILL HAS THREE YEARS REMAINING ON HIS CONTRACT AND SAID IT ISN'T NECESSARY TO RENEGOTIATE IT AT THIS TIME THE COMPANY DID EXTEND THE AGREEMENTS OF OTHERS INCLUDING JONATHAN DOLGEN PRESIDENT OF THE SONY PICTURES MOTIONPICTURE GROUP AND ALAN LEVINE PRESIDENT AND CHIEF OPERATING OFFICER OF THE FILMED ENTERTAINMENT GROUP SONY ALSO EXTENDED THE EMPLOYMENT AGREEMENTS OF A NUMBER OF TOP MUSIC GROUP EXECUTIVES AND EXTENDED THE CONTRACT OF OLAF OLAFSSON PRESIDENT OF SONY ELECTRONIC PUBLISHING MR SCHULHOF SAID THAT SONY HAS STAGGERED THE TERMS OF THE EXPIRATION OF ALL ITS EXECUTIVEEMPLOYMENT CONTRACTS OVER FOUR TO SEVEN YEARS TO PROTECT ITSELF AGAINST THE POSSIBILITY OF GROUP DEFECTIONS FROM THE MANAGEMENT RANKS WHEN SONY FIRST ACQUIRED ITS ENTERTAINMENT OPERATION MANY KEY MANAGEMENT CONTRACTS EXPIRED AT THE SAME TIME 9311190102 931119 MAYBE TOMORROW THEY'LL OVERHAUL CAMPAIGN FINANCING REFORM BILL'S SPONSOR MEETS RESISTANCE IN THE CONGRESS TO HIS MESSAGE OF DISCIPLINE BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EVERY TIME REP SAM GEJDENSON COMES UP WITH ANSWERS FOR OVERHAULING THE CAMPAIGNFINANCING SYSTEM HIS FELLOW HOUSE DEMOCRATS COME UP WITH MORE QUESTIONS SLOGGING THROUGH DRAWNOUT MEETINGS IN RECENT WEEKS MR GEJDENSON HAS FACED ONE OBJECTION AFTER ANOTHER OVER THE WISDOM FAIRNESS AND CONSTITUTIONALITY OF THE REFORM PLAN HE'LL BRING TO THE HOUSE FLOOR AS EARLY AS TOMORROW FOR THE DROLL CONNECTICUT LIBERAL IS SADDLED WITH THE MOST TEDIOUS OF POLITICAL CHORES PERSUADING COLLEAGUES TO CHANGE THE VERY SYSTEM THAT HAS NOURISHED THEIR CAREERS IT'S LIKE BEING A DIET DOCTOR SAYS MR GEJDENSON 45 YEARS OLD NOT EVERYBODY LIKES DISCIPLINE NOT BY A LONG SHOT BUT CONGRESS MAY NOT BE ABLE TO AVOID IT MUCH LONGER AFTER MONTHS OF DELAY THE HOUSE IS POISED TO FULFILL ITS LEADERS' PROMISES TO ACT BY YEAR'S END AND ROSS PEROT AND HIS LEGIONS NOW THAT THEIR HOPES OF KILLING THE NORTH AMERICAN FREE TRADE AGREEMENT HAVE BEEN DASHED SEEM SURE TO RATCHET UP PRESSURE ON LAWMAKERS TO CURTAIL SURGING CAMPAIGN SPENDING AND SPECIALINTEREST INFLUENCE AS THE 1994 ELECTIONS DRAW NEAR THE DEMOCRATIC REFORM BILL DOES THOSE THINGS SORT OF IT INCLUDES VOLUNTARY SPENDING LIMITS ON HOUSE CAMPAIGNS OF 600000 EXCEPT THAT INFLATION ADJUSTMENTS EXEMPTED LEGAL AND FUNDRAISING COSTS AND AN EXTRA 200000 ALLOCATION FOR THOSE FACING STIFF PRIMARY CHALLENGES CAN PUSH THE ACTUAL CAP MUCH HIGHER IT BARS CANDIDATES FROM RECEIVING MORE THAN 200000 FROM POLITICAL ACTION COMMITTEES BUT IN DEFERENCE TO BLACK CAUCUS MEMBERS AND THOSE DEMOCRATS WHO HAVE TROUBLE RAISING MONEY ELSEWHERE IT DOESN'T REDUCE THE 5000 LIMIT ON HOW MUCH AN INDIVIDUAL PAC CAN GIVE A CANDIDATE IT PROHIBITS LOBBYISTS UNIONS AND CORPORATIONS FROM BUNDLING CONTRIBUTIONS TO MAXIMIZE THEIR INFLUENCE BUT HAS A LOOPHOLE PERMITTING EMILY'S LIST A GROUP FAVORING DEMOCRATIC WOMEN CANDIDATES TO CONTINUE THE PRACTICE AND IT GIVES CANDIDATES WHO ABIDE BY THE SPENDING LIMITS 200000 IN VOUCHERS FOR CAMPAIGN ADVERTISING BUT DOESN'T SAY WHERE THE MONEY COMES FROM BECAUSE DEMOCRATS CAN'T AGREE ON IT AS A RESULT MR GEJDENSON'S BILL IS UNDER FIRE FROM ALL SIDES HIS GOP COUNTERPART REP BILL THOMAS OF CALIFORNIA DISMISSES IT AS REFORM BY AND FOR DEMOCRATS WHILE FORMER DEMOCRATIC ALLIES LIKE REP MIKE SYNAR OF OKLAHOMA BLAST IT AS A SHAM AND WHILE SUCH LONGTIME ADVOCATES OF CAMPAIGN REFORM AS COMMON CAUSE AND PUBLIC CITIZEN ENDORSE THE MEASURE AS A STEP FORWARD OTHERS INSIST MR GEJDENSON'S LABORS HAVE PROVEN A WASTE OF TIME WHAT HE'S PUT TOGETHER IS MORE A CAMPAIGNFINANCE RESHUFFLING THAN REFORM SAYS ELLEN MILLER DIRECTOR OF THE CENTER FOR RESPONSIVE POLITICS PROGRESS COMES IN INCREMENTAL STEPS REPLIES MR GEJDENSON HE ACCUSES REPUBLICANS OF SEEKING TO PROTECT THE PREROGATIVES OF RICH WHITE PEOPLE WHILE ARGUING THAT SOME REFORMERS' AIM OF COMPLETE PUBLIC FINANCING IS PLAINLY UNFEASIBLE POLITICALLY CONTRADICTORY INTERESTS FEW LAWMAKERS ARE BETTER SUITED TO PARRY CRITICS' BARBS THAN THE RESILIENT MR GEJDENSON A GERMANBORN SON OF WORLD WAR II CONCENTRATIONCAMP SURVIVORS HE WAS HANDPICKED FOR THE JOB TWO YEARS AGO BY SPEAKER THOMAS FOLEY A CLOSE FRIEND AFTER THE DEMOCRATS' PREVIOUS POINT MAN TIRED OF THE ISSUE AS A DEFENSECUTTING LIBERAL WHOSE DISTRICT MANUFACTURES NUCLEAR SUBMARINES THAT HE SUPPORTS HE'S USED TO JUGGLING CONTRADICTIONS HIS LEGISLATION WOULDN'T SEEM TO DO MR GEJDENSON HIMSELF ANY FAVORS DAMAGED BY THE HOUSE BANK SCANDAL IN 1992 HE NARROWLY DEFEATED GOP OPPONENT ED MUNSTER ONLY AFTER OUTSPENDING HIM 1 MILLION TO 140000 HIS HIGHPROFILE ROLE IN THE CAMPAIGNFINANCE DEBATE MAY PRESENT AN INVITING TARGET IN 1994 AS WELL MR MUNSTER RECENTLY BLASTED MR GEJDENSON FOR INVITING SOME HEALTHCARE PROVIDERS TO A 500APERSON RECEPTION AT SPEAKER FOLEY'S WASHINGTON HOME CONTRASTING THE FUNDRAISER WITH TOWN MEETINGS THE LAWMAKER WAS HOLDING TO GIVE YOU THE IMPRESSION HE IS INTERESTED IN YOUR VIEWS MANY DEMOCRATS WISH MR GEJDENSON AND THE LEADERSHIP WOULD QUIETLY DROP CAMPAIGN REFORM AND ITS IRRITATING COUSIN NEW RESTRICTIONS ON THE GIFTS LAWMAKERS CAN TAKE FROM LOBBYISTS BUT NEITHER IS LIKELY TO FADE AWAY CITING AN ABSENCE OF CONSTITUENT PRESSURE SOME BLAME THE EFFORTS ON CONSTANT ATTACKS ON HOUSE LEADERS FROM THE LIKES OF COMMON CAUSE AND BITING EDITORIAL CRITICISM PARTICULARLY IN THE NEW YORK TIMES THEY SEEM TO CARE ABOUT IT MORE THAN ANYONE ELSE IN THE COUNTRY SAYS REP GEORGE MILLER D CALIF ONE OF SEVERAL LAWMAKERS WITH WHOM MR GEJDENSON SHARES A WASHINGTON TOWN HOUSE BUT IN FACT AGGRESSIVE FRESHMEN LAWMAKERS FROM BOTH PARTIES HAVE DEMANDED MORE DRASTIC CHANGES UNCLEAR IS WHETHER PASSAGE OF MR GEJDENSON'S BILL WILL HELP RESTORE CONFIDENCE AMONG AN INCREASINGLY CYNICAL ELECTORATE THE HOUSE'S HANDLING OF THE ISSUE HASN'T EXACTLY BEEN CONFIDENCEINSPIRING AMONG OTHER THINGS RESISTANCE FROM SOME DEMOCRATS HAS MADE PLAIN THAT THEIR SUPPORT OF A VERY SIMILAR BILL LAST YEAR WAS ENTIRELY POLITICAL IT DIDN'T MATTER WHAT PASSED LAST TIME BECAUSE THE PRESIDENT WASN'T GOING TO SIGN IT SAYS REP GARY ACKERMAN D NY WHO RECENTLY WON A CONCESSION FROM MR GEJDENSON INCREASING THE EXTRA ALLOCATION FOR WINNERS OF CONTESTED PRIMARIES IF CONGRESS FAILED TO FINANCE COMMUNICATIONS VOUCHERS IN SEPARATE LEGISLATION NEXT YEAR WHICH WOULD KILL MR GEJDENSON'S BILL TOMORROW'S VOTE COULD PROVE EQUALLY EMPTY THE ULTIMATE SHAPE OF A NEW LAW WILL DEPEND ON NEGOTIATIONS WITH THE SENATE WHICH HAS PASSED A BILL GOING FURTHER THAN THE HOUSE IN BANNING POLITICAL ACTION COMMITTEES CURTAILING UNREGULATED SOFT MONEY AND DIMINISHING INCUMBENTS' FINANCIAL ADVANTAGES WHATEVER THE OUTCOME THE WEARY MR GEJDENSON ISN'T EXPECTING BOUQUETS FROM THE PUBLIC WE'RE GOING TO GET NO CREDIT WHATSOEVER HE SAYS 9311190101 931119 LETTERS TO THE EDITOR HOMEWORK PAYS OFF REGARDING YOUR OCT 11 ARTICLE KIDS' HOMEWORK MAY BE GOING THE WAY OF THE DINOSAUR AS A STRAIGHTA STUDENT I CAN VOUCH THAT TIME SPENT ON HOMEWORK IS DEFINITELY WORTHWHILE MY SCHOOL IS SANTA YNEZ VALLEY HIGH IN SANTA YNEZ CALIF I SPEND TWO TO THREE HOURS EACH NIGHT ON HOMEWORK A LARGE INCREASE FROM MY ELEMENTARY SCHOOL DAY WHEN I SPENT 30 MINUTES TO ONE HOUR EACH NIGHT NOT EVERYONE IN MY CLASSES COMPLETES THEIR HOMEWORK AND SOME STUDENTS SPEND TIME DURING LECTURES FINISHING ASSIGNMENTS HOMEWORK MAY SEEM POINTLESS NOW BUT I'VE FOUND IT'S WORTH IT IN THE LONG RUN 9311190100 931119 OFFICIAL RESERVE ASSETS DROP BY 129 BILLION WASHINGTON US OFFICIAL RESERVE ASSETS FELL 129 BILLION IN OCTOBER TO 7455 BILLION THE TREASURY SAID LAST MONTH'S DECREASE COMPARED WITH A 604 MILLION RISE IN RESERVE ASSETS IN SEPTEMBER TO 7584 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES DECREASED 926 MILLION IN OCTOBER TO 4255 BILLION WHILE ITS GOLD RESERVES FELL 1 MILLION TO 1106 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH FELL 165 MILLION TO 904 BILLION AND ITS RESERVE POSITION AT THE IMF DROPPED 193 MILLION TO 1191 BILLION 9311190099 931119 WHITBREAD REPORTS PRETAX PROFIT ROSE FOR FISCAL 6 MONTHS SPECIAL TO THE WALL STREET JOURNAL LONDON UK BREWER WHITBREAD & CO SAID SIGNIFICANT SALES AND PROFIT GAINS IN ITS RESTAURANTS HELPED FISCAL SIXMONTHS PRETAX PROFIT RISE 13 PRETAX PROFIT CLIMBED TO 1357 MILLION 201 MILLION FROM 1197 MILLION THE RESULTS FOR THE SIX MONTHS ENDED AUG 28 WERE WELL ABOVE MARKET EXPECTATIONS MOST INDUSTRY ANALYSTS PREDICTED THE COMPANY WOULD REPORT A PRETAX PROFIT CLOSER TO THE P127 MILLION RESULT IT SAW A YEAR EARLIER THE COMPANY ADDED 8 MILLION TO ITS PENSION FUND DURING THE PERIOD AT THE LOWER END OF ANALYSTS' FORECASTS FOR THE CONTRIBUTION THESE RESULTS OWE MORE TO THE POPULAR APPEAL OF THE WHITBREAD BRANDS AND CONCEPTS THAN TO ANY SUSTAINED UPTURN IN CONSUMER SPENDING MICHAEL ANGUS CHAIRMAN OF THE COMPANY SAID IN A STATEMENT THIS GIVES US CONFIDENCE THAT WE ARE IN A STRONG COMPETITIVE POSITION WHEN GROWTH RETURNS TO OUR MARKETS ANGUS ATTRIBUTED MUCH OF THE GAIN TO RISING SALES AND PROFITS IN ITS FOOD BUSINESSES PARTICULARLY IN ITS BREWERS FAYRE BEEFEATER AND PIZZA HUT UNITS GAINS THERE HELPED OFFSET A 12 PROFIT DECLINE TO 252 MILLION IN ITS PUB PARTNERSHIPS THE DECLINE WAS THE RESULT OF FEWER PUBS THE UNIT NOW HAS ABOUT 2300 PUBS RUN BY INDIVIDUAL ENTREPRENEURS WHEREAS LAST YEAR IT HAD ABOUT 2750 BREAKING DOWN ITS RESULTS BY DIVISION WHITBREAD SAID SALES IN ITS PUBS BUSINESS INCREASED 5 DESPITE A REDUCTION OF 40 IN THE NUMBER OF PUBS IN THE RESTAURANTS AND LEISURE DIVISION SALES ROSE BY 6 IN THE FIRST HALF BEEFEATER POSTED A 7 IMPROVEMENT IN SALES WHILE PIZZA HUT SALES ROSE 10 BOOSTED BY A PARTICULARLY STRONG PERFORMANCE FROM THE DELIVERY UNITS THE COMPANY SAID WHITBREAD ADDED THAT PIZZA HUT HAD AGAIN INCREASED MARKET SHARE BUT GAVE NO STATISTICS WHITBREAD REPORTED A STRONGER PERFORMANCE IN THE ITS HOTELS BUSINESS AND SAID A FURTHER SEVEN TRAVEL INN BUDGET HOTELS WERE PLANNED BY THE END OF THE FISCAL YEAR 9311190098 931119 TECHNOLOGY D&B UNIT WINS US JOB TO MONITOR AIDS TRENDS NEW YORK A NEW DUN & BRADSTREET CORP UNIT SAID IT WAS AWARDED A CONTRACT BY THE FEDERAL CENTERS FOR DISEASE CONTROL TO MONITOR HIV/AIDS TRENDS AND TREATMENT PATTERNS IN FIVE AREAS OF THE COUNTRY D&B'S HEALTHCARE INFORMATION DIVISION WILL WORK WITH ABOUT 50 PHYSICIAN MEMBERS OF THE HEALTH RESEARCH NETWORK A CLINICAL NETWORK RESPONSIBLE FOR 5000 TO 10000 HIVINFECTED PATIENTS NATIONWIDE AMONG OTHER THINGS THE STUDY WILL TRACK THE COST OF PROVIDING CARE FOR AIDSRELATED ILLNESSES SUCH AS PCP PNEUMONIA AND IDENTIFY THE MOST COSTEFFECTIVE WAY TO PROVIDE SUCH CARE THE CONTRACT WHICH WILL COST ABOUT 300000 A YEAR IS EXPECTED TO LAST THREE TO FIVE YEARS A D&B SPOKESWOMAN SAID THE PROJECT WILL PRODUCE A LONGITUDINAL STUDY TO GIVE PHYSICIANS A NATIONAL DATABASE TO TRACK THE INCIDENCE OF AIDSRELATED CONDITIONS 9311190097 931119 CABLE & WIRELESS EARNINGS ROSE 35 IN THE FIRST HALF SPECIAL TO THE WALL STREET JOURNAL LONDON CABLE & WIRELESS PLC BRITAIN'S SECONDLARGEST TELECOMMUNICATIONS CARRIER REPORTED THAT PRETAX PROFIT ROSE 35 TO 509 MILLION 7538 MILLION IN THE FIRST HALF ENDED SEPT 30 THE RESULT WAS ON THE HIGH SIDE OF ANALYSTS' FORECASTS THE COMPANY ALSO SAID IT PLANS A 10YEAR EURODOLLAR BOND ISSUE ITS FIRST LONGTERM DOLLAR DEBT IT DIDN'T DISCLOSE HOW MUCH IT PLANS TO RAISE AND SAID THE TIMING WILL BE SUBJECT TO MARKET CONDITIONS SEPARATELY CABLE & WIRELESS SAID IT IS DEVELOPING TECHNOLOGY FOR A RADIOBASED PHONE SYSTEM WHICH WOULD ENABLE IT TO OFFER CHEAPER LOCAL CALLS PERHAPS BY THE MIDDLE OF 1994 SUCH LOCALLOOP RADIO IS A GLOBAL AIM FOR CABLE & WIRELESS IT IS ALREADY TESTING THE SYSTEM IN RUSSIA AND EXPECTS TO TEST IT ELSEWHERE NEXT YEAR USING RADIO NETWORKS IN THE UK WOULD ENABLE CABLE & WIRELESS'S MERCURY COMMUNICATIONS UNIT TO CUT OUT ITS USE OF BRITISH TELECOMMUNICATIONS PLC'S NETWORK THE COMPANY SAID INTERCONNECTION FEES TO BT ARE CABLE & WIRELESS'S BIGGEST SINGLE PAYMENT MERCURY PROBABLY WOULDN'T SEEK TO SET UP A NATIONAL RADIO NETWORK BUT WOULD ESTABLISH SMALL NETWORKS IN VARIOUS DISTRICTS LOCALLOOP RADIO NETWORKS WOULD LIKELY SUIT SMALL BUSINESS CUSTOMERS USING UP TO 10 LINES AS WELL AS RESIDENTIAL CUSTOMERS FURTHER DOWN THE TRACK CABLE & WIRELESS COULD USE LOCALLOOP RADIO NETWORKS TO OFFER TELEMEDIA SERVICES SUCH AS THE VIDEOONDEMAND SERVICES THAT ITS UNIT HONG KONG TELECOMMUNICATIONS LTD ALREADY PROVIDES MERCURY LIKE BT IS EXPERIMENTING WITH VIDEOONDEMAND BUT TO OFFER IT UNDER CURRENT CIRCUMSTANCES WOULD NEED TO USE BT'S EXISTING CABLE NETWORK MIKE HARRIS EXECUTIVE DIRECTOR OF CABLE & WIRELESS'S WESTERN EUROPE DIVISION AND CHIEF EXECUTIVE OF THE 80OWNED MERCURY SAID MERCURY IS IN DISCUSSIONS WITH HOUSEHOLD NAME RETAILERS IN THE UK TO OFFER TELEVISION SHOPPING AND IS ALSO DEVELOPING OTHER INTERACTIVE ENTERTAINMENT AND INFORMATION SERVICES IN ITS EARNINGS REPORT CABLE & WIRELESS SAID MOST OF ITS MAJOR BUSINESS SECTORS SAW SALES GROWTH OVERALL SALES ROSE 34 TO 233 BILLION AT THE MERCURY TELEPHONE UNIT REVENUE ROSE 24 TO 701 MILLION AND OPERATING PROFIT GREW 5 TO 99 MILLION IT SAID DEMAND FOR MERCURY'S ONE2ONE MOBILE PHONE SYSTEM IS RUNNING FAR AHEAD OF EXPECTATIONS WE HAVE HAD A GOOD FIRST HALF CABLE & WIRELESS EXECUTIVE CHAIRMAN LORD YOUNG SAID IMPROVED TRADING ACROSS THE RANGE OF OUR OPERATIONS COMBINED WITH FAVORABLE CURRENCY MOVEMENTS HAS RESULTED IN EARNINGS PER SHARE GROWTH 9311190096 931119 INTERNATIONAL FOREIGN BANKS BANNED FROM SERVING RUSSIANS MOSCOW MOST FOREIGN BANKS IN RUSSIA WILL BE BANNED FROM SERVING RUSSIAN CLIENTS UNTIL 1996 ACCORDING TO A DECREE SIGNED BY PRESIDENT BORIS YELTSIN FOREIGN BANKS THAT HADN'T STARTED HANDLING RUSSIAN CLIENTS BY NOV 15 WILL HAVE TO WAIT UNTIL JAN 1 1996 TO BEGIN THOSE OPERATIONS ANY BANKS LICENSED BY THE CENTRAL BANK OF RUSSIA AFTER NOV 15 ALSO WILL HAVE TO WAIT UNTIL 1996 TO EXPAND BEYOND NONRESIDENT CLIENTS AT PRESENT THERE ARE LESS THAN 20 FOREIGNOWNED OR FOREIGNCONTROLLED BANKS IN RUSSIA BUT AMONG THEM ARE SOME OF THE WORLD'S MOST PROMINENT INCLUDING CITICORP'S CITIBANK UNIT CHASE MANHATTAN CORP'S CHASE MANHATTAN BANK AND FRANCE'S CREDIT LYONNAIS NEARLY ALL OF THE FOREIGN BANKS RECEIVED THEIR LICENSES ONLY THIS YEAR AND MOST HAVEN'T BEGUN ACCEPTING DEPOSITS AND WILL BE SUBJECT TO THE NEW DECREE RUSSIAN OFFICIALS HAVE ARGUED THAT THE COUNTRY'S ROUGHLY 1800 COMMERCIAL BANKS MOST OF WHICH ARE LESS THAN FIVE YEARS OLD AND EXTREMELY UNDERCAPITALIZED NEED PROTECTION FROM FOREIGN COMPETITION IN ORDER TO DEVELOP FOREIGN BANKS APPARENTLY STILL WILL BE ABLE TO SERVE FOREIGN CLIENTS WITH THAT IN MIND A CITIBANK SPOKESWOMAN SAID THE BANK'S PRIMARY FOCUS WOULD BE ON MULTINATIONAL CLIENTS BUT SHE SAID SHE COULDN'T ELABORATE WITHOUT SEEING THE DECREE 9311190095 931119 SURGICAL CARE WON'T RAISE ITS OFFER FOR MEDICAL CARE NASHVILLE TENN SURGICAL CARE AFFILIATES INC REJECTED A PROPOSAL FROM MEDICAL CARE AMERICA INC THAT SURGICAL CARE INCREASE ITS ACQUISITION BID THE MOVES ARE THE LATEST IN A THREEWEEKOLD FACEOFF BETWEEN THE TWO OPERATORS OF OUTPATIENT SURGERY CENTERS IN MIDOCTOBER SURGICAL CARE OFFERED TO EXCHANGE 135 COMMON SHARES FOR EACH MEDICAL CARE SHARE IN A TRANSACTION VALUED AT NEARLY 1 BILLION ON OCT 29 MEDICAL CARE BASED IN DALLAS REJECTED THE BID THAT DECISION HOWEVER ANGERED SOME MEDICAL CARE SHAREHOLDERS A DISSIDENT GROUP LED BY REPRESENTATIVES OF FORT WORTH TEXAS INVESTORS PERRY BASS AND HIS SONS SID AND LEE PRESSURED MEDICAL CARE TO MEET WITH SURGICAL CARE THIS WEEK MEDICAL CARE APPEARED TO OPEN THE DOOR SLIGHTLY INDICATING IT WOULD CONSIDER A SECOND ACQUISITION BID YESTERDAY SURGICAL CARE SAID IT HAD RECEIVED A LETTER FROM MEDICAL CARE INDICATING THAT THE LATTER WOULD BE WILLING TO DISCUSS A MATERIALLY IMPROVED OFFER BUT JOEL C GORDON CHAIRMAN AND CHIEF EXECUTIVE OF SURGICAL CARE NOTED IN A PREPARED STATEMENT THAT SURGICAL CARE IN ITS ORIGINAL MERGER PROPOSAL HAD INDICATED A WILLINGNESS TO CONSIDER ANY INFORMATION FROM MEDICAL CARE THAT WOULD JUSTIFY A HIGHER PRICE ACCORDINGLY HE SAID SURGICAL CARE CANNOT ADDRESS THE ISSUE OF PRICE FURTHER UNLESS WE HAVE AN OPPORTUNITY TO MEET WITH YOU AND BEGIN DUE DILIGENCE A MEDICAL CARE SPOKESWOMAN SAID THAT THE COMPANY WOULD NOT IMMEDIATELY HAVE ANY COMMENT 9311190094 931119 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INDONESIAN POLICE SMASHED A SYNDICATE SUPPLYING 70 OF ASIA'S PIRATED COMPUTER MANUALS TWO INTERNATIONAL PUBLISHING AND SOFTWARE ASSOCIATIONS SAID THE ASSOCIATION OF AMERICAN PUBLISHERS INC AND THE BUSINESS SOFTWARE ALLIANCE SAID IN JAKARTA THAT IN THE RECENT RAIDS OF THREE PRINTERS AND TWO PUBLISHERS POLICE CONFISCATED BETWEEN 3 MILLION AND 5 MILLION OF COUNTERFEIT PRODUCTS ONE OF THE LARGEST HAULS OF PIRATED EDUCATIONAL BOOKS IN ASIA IN A SINGLE SWEEP IN ADDITION TO DISKETTES WITH ILLEGALLY COPIED SOFTWARE AND 17000 MANUALS POLICE COLLECTED NAMES AND ADDRESSES OF THE PRINTERS' CUSTOMERS WORLDWIDE THREE SUSPECTS FACE CHARGES UNDER INDONESIA'S COPYRIGHT LAWS WHICH ALLOW FOR SEVENYEAR PRISON TERMS DESPITE ITS IMPROVED INTELLECTUALPROPERTY PROTECTION INDONESIA IS THE SOURCE OF 90 OF ALL PIRATED MANUALS FOUND IN HONG KONG THE TWO GROUPS SAID PIRACY OF BOOKS AND SOFTWARE REMAINS RIFE IN ASIA AS ENFORCEMENT IS UNEVEN AND COUNTERFEITERS EXPLOIT LEGAL LOOPHOLES THE ALLIANCE ESTIMATED COMPANIES LOSE MORE THAN 54 BILLION A YEAR IN ASIA BECAUSE OF SOFTWARE THEFT ITALIAN BUREAUCRATS HAVE LONG BEEN NOTORIOUS FOR MAKING PEOPLE WAIT INTERMINABLY IN LINES NOW THE BUREAUCRACY ITSELF HAS MEASURED THAT INCONVENIENCE THE PUBLIC WORKS MINISTER REPORTED TO PARLIAMENT THAT ITALIANS SPEND AN AVERAGE OF 20 DAYS A YEAR SHUFFLING IN QUEUES THE REPORT ALSO SAID COMPLICATED AND CONFUSING LEGISLATION CONTRIBUTES TO INEFFICIENT PUBLIC ADMINISTRATION GOVERNMENT WORKERS LAST YEAR MISSED 156 MILLION WORKDAYS OWING TO SICKNESS AND OTHER LEAVES AN AVERAGE OF ONE ABSENCE IN EVERY 12 WORKDAYS AND 13 MILLION WORKDAYS BECAUSE OF STRIKES BULGARIA'S PARLIAMENT BANNED TOBACCO ADVERTISING VIOLATORS COULD FACE FINES OF AS MUCH AS 50000 THE LAW ALLOWS ADS FOR TOBACCO PRODUCTS ONLY IN SHOPS WHERE THEY ARE SOLD IT BARS ADS FOR CIGARETTES AND TOBACCO PRODUCTS ON RADIO TELEVISION AND BILLBOARDS AND ON PUBLIC TRANSIT WHERE AD REVENUE HAS PAID FOR MOST MAINTENANCE EXPENSES STATE TV ALSO HAS COLLECTED HUGE SUMS FOR ADS BY WESTERN CIGARETTE COMPANIES COMPETING FOR MARKET SHARE REJECTING THE GOVERNMENT'S OFFER OF A 695 PAY INCREASE LEBANON'S MAIN LABOR GROUP URGED UNIONS TO DECLARE A GENERAL STRIKE NEXT WEEK THE LEBANESE LABOR UNION CONFEDERATION ALSO CALLED FOR NATIONWIDE DEMONSTRATIONS AFTER THE GOVERNMENT'S PAY INCREASE FELL FAR SHORT OF THE 120 BOOST RETROACTIVE TO JAN 1 THAT THE GROUP SOUGHT FOR 350000 PRIVATESECTOR EMPLOYEES AND 110000 GOVERNMENT WORKERS A WALKOUT COULD THREATEN EFFORTS TO SPEED RECOVERY FROM THE 197590 CIVIL WAR RIOTS IN BEIRUT IN MAY 1992 OVER LEBANON'S ECONOMIC DECLINE TOPPLED THE GOVERNMENT THE BACKER OF PHILIPPINE LEGISLATION TO MAKE IT EASIER FOR FOREIGN BANKS TO SET UP OPERATIONS IN THE COUNTRY SAID 14 INTERNATIONAL BANKS ARE WAITING FOR BARRIERS TO FALL REP MARGARITO TEVES PRINCIPAL AUTHOR OF THE BILL APPROVED BY THE HOUSE SAID BANKS FROM THE US JAPAN GERMANY CHINA FRANCE CANADA SINGAPORE AND SCOTLAND HAVE EXPRESSED A DESIRE TO SET UP SHOP AND FOREIGN BANKS NOW IN THE PHILIPPINES WANT MORE FLEXIBLE RULES TO ALLOW EXPANSION OF THEIR SERVICES DOMESTIC BANKS FAVOR LIMITED ENTRY OF FOREIGN RIVALS BUT PRESIDENT FIDEL RAMOS BACKS SENATE PASSAGE OF THE LIBERALIZATION BILL WHICH AIMS TO ENCOURAGE FOREIGN INVESTMENT ABOUT 15000 WORKERS FROM THROUGHOUT ROMANIA RALLIED IN BUCHAREST TO PROTEST FALLING LIVING STANDARDS AND DEMAND THE GOVERNMENT'S RESIGNATION THE DEMONSTRATION BILLED AS THE MARCH OF DESPAIR WAS THE LARGEST STAGED IN THE COUNTRY THIS YEAR UNIONS HAVE BLAMED THE GOVERNMENT'S STAGNANT REFORM POLICIES FOR CRIPPLING THE ECONOMY ROMANIA HAS STRUGGLED SINCE LATE 1989 TO BUILD A MARKETORIENTED ECONOMY INFLATION IS RUNNING AT 300 A YEAR AND THE UNEMPLOYMENT RATE IS 94 BRAZIL INAUGURATED THE FIRST SUBMARINE EVER MADE IN THE COUNTRY THE BOAT BUILT WITH GERMAN TECHNOLOGY WAS NAMED THE TAMOIO AFTER AN INDIAN TRIBE THAT OCCUPIED THE RIO DE JANEIRO COAST IN THE 16TH CENTURY THE INTERNATIONAL LABOR ORGANIZATION SUSPENDED A 1964 BAN ON TECHNICAL HELP TO SOUTH AFRICA THE ILO A UNITED NATIONS BODY THAT SETS LABOR STANDARDS NOW MAY ADVISE SOUTH AFRICA ON ELIMINATING BIASED LABOR LAWS AND WORKERS' GROUPS ON EMPLOYEE RIGHTS AS THE COUNTRY MOVES TOWARD A NONRACIAL DEMOCRACY 9311190093 931119 SENATE RENEWS SPECIALCOUNSEL LAW BUT ADDS SOME CONTROLS ON SPENDING BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE VOTED TO REAUTHORIZE THE INDEPENDENTCOUNSEL LAW BUT ADDED PROVISIONS TO CONTROL SPENDING BY THE SPECIALLY APPOINTED INVESTIGATORS APPROVED 7621 THE FIVEYEAR REAUTHORIZATION WOULD MAKE IT EASIER FOR THE ATTORNEY GENERAL TO USE THE INDEPENDENTCOUNSEL PROCESS TO INVESTIGATE ALLEGATIONS AGAINST A MEMBER OF CONGRESS UNDER THE NEW STANDARD THE PROCESS MAY BE USED IF THE ATTORNEY GENERAL DECIDES IT WOULD BE IN THE PUBLIC INTEREST THE PREVIOUS STANDARD WHICH LAPSED WHEN THE PRIOR AUTHORIZATION EXPIRED IN DECEMBER REQUIRED THE ATTORNEY GENERAL TO DETERMINE THAT A CONFLICT OF INTEREST PERSONAL POLITICAL OR FINANCIAL WOULD EXIST IF THE JUSTICE DEPARTMENT CONDUCTED THE INVESTIGATION THE INDEPENDENTCOUNSEL PROCESS AUTHORIZES THE ATTORNEY GENERAL TO DETERMINE IF ALLEGATIONS AGAINST TOP GOVERNMENT OR CAMPAIGN OFFICIALS REQUIRE A PRELIMINARY INVESTIGATION SUCH A PROBE MUST BE COMPLETED WITHIN 90 DAYS THOUGH A 60DAY EXTENSION IS PERMITTED IF NECESSARY THE ATTORNEY GENERAL THEN FILES A REPORT REQUESTING OR DECLINING THE APPOINTMENT OF AN INDEPENDENT COUNSEL THE REQUEST IS MADE TO A SPECIAL THREEJUDGE COURT WHICH APPOINTS THE COUNSEL THE INDEPENDENTCOUNSEL STATUTE WAS ESTABLISHED DURING THE POSTWATERGATE SCANDAL PERIOD IN AN ATTEMPT TO ENSURE CONFIDENCE IN THE INTEGRITY OF FEDERAL OFFICIALS THIS PROCESS WAS ADOPTED TO DEAL WITH THE EXTRAORDINARY AND DELICATE CIRCUMSTANCES IN WHICH A PRESIDENT AND ATTORNEY GENERAL FACE AN INHERENT CONFLICT OF INTEREST IN THE INVESTIGATION OF ALLEGATIONS AGAINST TOP ADMINISTRATION OR HIGH GOVERNMENT OFFICIALS ACCORDING TO THE SENATE'S DEMOCRATIC POLICY COMMITTEE INDEPENDENT COUNSELS DEAL IN CONTROVERSIAL ISSUES SUCH AS THE IRANCONTRA INVESTIGATION WHICH BEGAN SEVEN YEARS AGO LAWRENCE WALSH THE IRANCONTRA INDEPENDENT COUNSEL FILED 14 INDICTMENTS OF THOSE HE SECURED 11 CONVICTIONS WHILE ONE INDICTMENT WAS DISMISSED AND TWO OTHERS NEVER WENT TO TRIAL BECAUSE OF PARDONS ISSUED BY PRESIDENT BUSH HIS OFFICE HAS BEEN CRITICIZED FOR ITS METHODS OF OPERATION A KEY FEATURE OF THE BILL IS A HOST OF TIGHTER FISCAL AND ADMINISTRATIVE CONTROLS ON INDEPENDENT COUNSELS IN RESPONSE TO SOME OF THE WEAKNESSES DEMONSTRATED BY THE IRANCONTRA MATTER SAID SEN CARL LEVIN D MICH A SPONSOR OF THE REAUTHORIZATION THOSE CONTROLS REQUIRE AUDITS BY THE GENERAL ACCOUNTING OFFICE AND QUARTERLY EXPENSE REPORTS THEY ALSO LIMIT TRAVEL EXPENSES AND THEY RESTRICT STAFF COMPENSATION TO COMPARABLE AMOUNTS PAID IN THE US ATTORNEY'S OFFICE IN WASHINGTON DC SEPARATELY THE HOUSE JOINED THE SENATE IN APPROVING LEGISLATION THAT WOULD MAKE IT A FEDERAL CRIME TO OBSTRUCT ACCESS TO ABORTION CLINICS THE MEASURE APPROVED BY VOICE VOTE AFTER THE HOUSE REJECTED AN EFFORT BY ANTIABORTION LAWMAKERS TO WEAKEN IT CAME IN RESPONSE TO A RECENT SERIES OF ATTACKS AGAINST ABORTION PROVIDERS INCLUDING THE MURDER OF A FLORIDA DOCTOR THE BILL PROHIBITS PROTESTERS FROM USING FORCE THREATS OR PHYSICAL OBSTRUCTION TO INTERFERE WITH PEOPLE SEEKING ACCESS TO ABORTION CLINICS WHILE EXEMPTING PEACEFUL DEMONSTRATION OR OTHER EXPRESSIVE CONDUCT PROTECTED UNDER THE FIRST AMENDMENT UNDER AN AMENDMENT OFFERED BY REP TOM DELAY R TEXAS PARENTS WOULD BE EXEMPTED FROM PENALTIES FOR MAKING ATTEMPTS TO DISCOURAGE THEIR OWN MINOR CHILDREN FROM SEEKING ABORTION THE HOUSE AND SENATE NOW MUST RESOLVE MINOR DIFFERENCES IN THEIR TWO VERSIONS BEFORE THE MEASURE CAN BE SENT TO PRESIDENT CLINTON FOR HIS SIGNATURE JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9311190092 931119 AMERICAN AIR STRIKE STRANDS THOUSANDS OF FLIERS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL FORT WORTH TEXAS A STRIKE BY AMERICAN AIRLINES' FLIGHT ATTENDANTS UNION WAS FAR MORE SUCCESSFUL THAN THE CARRIER EXPECTED AS THE AMR CORP UNIT WAS FORCED TO CANCEL SCORES OF FLIGHTS AND STRAND THOUSANDS OF PASSENGERS IN THE US AND ABROAD AMR BETTING THAT THOUSANDS OF FLIGHT ATTENDANTS WOULD CROSS THE PICKET LINES HAD SAID IT WOULD BE ABLE TO FLY THROUGH THE STRIKE IN FACT MANY OF AMERICAN'S JETS DID TAKE OFF ALBEIT LATE BUT SCORES FLEW EMPTY TO THEIR NEXT DESTINATIONS BECAUSE THE AIRLINE ONE OF THE NATION'S LARGEST COULDN'T SCRAPE TOGETHER ENOUGH FLIGHT ATTENDANTS TO MEET FEDERAL AVIATION ADMINISTRATION MINIMUMS BOTH SIDES SHOW NO SIGNS OF BACKING DOWN WHEN THEY WENT ON STRIKE AT 6 AM CST YESTERDAY THE FLIGHT ATTENDANTS CALLED FOR AN 11DAY ACTION DESIGNED TO EXTEND THROUGH THE BUSY THANKSGIVING WEEKEND AMR OFFICIALS MEANWHILE THREATENED THAT STRIKING FLIGHT ATTENDANTS WOULD BE REPLACED AT ISSUE IS FAR MORE THAN THE PAY BENEFITS AND WORK RULES OVER WHICH THE COMPANY AND THE FLIGHT ATTENDANTS ARE OSTENSIBLY FIGHTING THE HEART OF THE DISPUTE CONCERNS WHETHER AMR CHAIRMAN ROBERT L CRANDALL CAN CONTINUE HIS PLAN TO DISMANTLE PARTS OF THE AIRLINE THAT DON'T MAKE MONEY AND WHETHER HE CAN GET THE COSTSAVING CONTRACTS FROM HIS UNIONS THAT HE SAYS WILL MAKE AMERICAN MORE COMPETITIVE THAT HE'S BATTLING THE FLIGHT ATTENDANTS IS AN ACCIDENT OF TIMING THEIR CONTRACT EXPIRED BEFORE THE PILOTS' CONTRACT THE PILOTS ARE WATCHING THIS FIGHT VERY CAREFULLY TRAVELERS WERE LEFT STRANDED OR SCURRYING TO MAKE ALTERNATE PLANS AND MANY VOWED NEVER TO FLY AMERICAN AGAIN I HAVE A FEELING I'M GOING NOWHERE TODAY SAID ROBERT HALPERIN AS HE WAITED AT CHICAGO'S O'HARE AIRPORT TO HEAR WHETHER HE COULD ON A UNITED FLIGHT TO PHOENIX HE WAS PARTICULARLY ANGRY AT AMERICAN OFFICIALS WHO APPEARED ON TV SAYING TRAFFIC WAS MOVING SMOOTHLY I WAS STUPID TO TRY TO FLY AMERICAN HE SAYS LEADERS OF AMERICAN'S ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS ESTIMATED THAT 90 OF ITS 21000 MEMBERS HONORED PICKET LINES AND CLAIMED THAT AMERICAN'S SYSTEM WAS VIRTUALLY SHUT DOWN THAT CERTAINLY SEEMED TO BE THE CASE YESTERDAY MORNING AT MANY OF AMERICAN'S HUBS OF THE CARRIER'S FIRST TWO SETS OF FLIGHTS IN CHICAGO REPRESENTING ABOUT 80 FLIGHTS ONLY FOUR TOOK OFF WITH PASSENGERS ABOARD ACCORDING TO AN EXECUTIVE AT A COMPETITOR IN NASHVILLE IT WAS EIGHT OF 51 FLIGHTS ANOTHER RIVAL EXECUTIVE SAID AND IN DALLAS/FORT WORTH THE AIRLINE'S LARGEST HUB ONLY SIX OF AMERICAN'S 30 EARLIEST FLIGHTS LEFT WITH PASSENGERS YET ANOTHER AIRLINE SAID AMERICAN'S PILOTS UNION SAID NO FLIGHTS TOOK OFF YESTERDAY FOR EUROPE IN A STATEMENT ISSUED LATE YESTERDAY AMERICAN SAID THAT MORE FLIGHT ATTENDANTS WERE REPORTING TO WORK AS THE DAY PROGRESSED AND THAT MORE THAN 60 OF FLIGHTS FROM DALLAS/FORT WORTH WERE PROPERLY CREWED LEAVING WITH PASSENGERS IT ACKNOWLEDGED THAT SOME FLIGHTS WERE FLOWN WITH ONLY CARGO AND MAIL A PATTERN THAT WILL CONTINUE THE COMPANY SAID ADDING IT REGRETTED THE INCONVENIENCE TO PASSENGERS MOST PASSENGERS DIDN'T KNOW THE EXTENT OF AMERICAN'S TROUBLES OR THAT THEY WERE UNLIKELY TO GET TO THEIR DESTINATIONS BECAUSE THE AIRLINE KEPT INFORMATION TO A MINIMUM AT THE LARGEST HUBS TELEVISION MONITORS SHOWING FLIGHT SCHEDULES INDICATED SCATTERED DELAYS BUT ONLY WHEN PASSENGERS REACHED THEIR GATES DID THEY LEARN THEIR FLIGHTS WERE CANCELED OR POSTPONED MIDWAY THROUGH THE DAY THE DALLAS/FORT WORTH AIRPORT INSTITUTED RULES ALLOWING ONLY TICKETED PASSENGERS BEHIND THE SECURITY BARRIERS A MEASURE THAT KEPT REPORTERS AT BAY AMERICAN ALSO REMOVED A LOCAL DALLAS TELEVISION CREW FROM A FLIGHT FROM DALLAS TO HOUSTON AMERICAN WAS TRYING TO PUT STRANDED PASSENGERS ON LATER FLIGHTS IF THOSE LATER FLIGHTS DIDN'T HAVE ENOUGH CREW MEMBERS PASSENGERS THEN WERE SHIFTED TO OTHER AIRLINES AMERICAN SAID IT WOULD IMMEDIATELY BEGIN RECRUITING FOR REPLACEMENT FLIGHT ATTENDANTS AT ITS HEADQUARTERS IN FORT WORTH AND WOULD BE PLACING ADVERTISEMENTS AND ACCEPTING APPLICATIONS IN 30 CITIES TODAY AT CHICAGO'S O'HARE AIRPORT AMERICAN'S SECONDBIGGEST HUB STRANDED PASSENGERS WERE ANGRY KEVIN AND CONNIE YATES SAT DEJECTED FOR NEARLY FOUR HOURS WITH THEIR THREE YOUNG SONS IN TERMINAL 3 THE YATES FAMILY FROM ROCKFORD ILL SAVED FOR TWO YEARS FOR THEIR DREAM VACATION TO SAN JUAN PUERTO RICO ALTHOUGH THEY WERE ASSURED REPEATEDLY THAT THEIR FLIGHT WAS ON SCHEDULE EARLY YESTERDAY THEIR 1045 AM FLIGHT WAS CANCELED AND THE BEST THEY COULD HOPE FOR WAS A DELTA FLIGHT ON MONDAY MRS YATES WHO SHELLED OUT 2000 IN APRIL FOR HER FAMILY'S AIR FARE SAYS WE'RE NEVER GOING TO FLY AMERICAN AGAIN AT DALLAS/FORT WORTH INTERNATIONAL AIRPORT DENE PENDLETON A TEACHER FROM WASHINGTON DC WAS WAITING FOR HER CONNECTING FLIGHT TO HOUSTON WHERE SHE WAS TO ATTEND THE NATIONAL ASSOCIATION OF BLACK EDUCATORS CONFERENCE HER FLIGHT'S DEPARTURE HAD BEEN PUSHED BACK SEVERAL HOURS ALREADY I'M THIS CLOSE I CAN DRIVE TO HOUSTON BUT I CAN'T DRIVE BACK TO WASHINGTON SUNDAY SHE SAID ALSO STRANDED IN DALLAS/FORT WORTH WERE ALL 20 PLAYERS AND 15 SUPPORT PERSONNEL FOR THE TAMPA BAY LIGHTNING HOCKEY TEAM WHEN THEIR FLIGHT TO TAMPA WAS CANCELED TEAM MEMBERS STOOD AROUND GATE 21A AS TONY ESPOSITO THE TEAM'S DIRECTOR OF HOCKEY OPERATIONS FRANTICALLY THUMBED THROUGH A FLIGHT SCHEDULE AND A TEAM EXECUTIVE SPOKE ON A CELLULAR PHONE WITH A TRAVEL AGENT DESPITE YESTERDAY'S PROBLEMS MOST PASSENGERS APPEARED TO REACH THEIR DESTINATIONS EVENTUALLY OVERALL PASSENGER TRAFFIC YESTERDAY WAS LIGHT ENOUGH THAT OTHER CARRIERS COULD ABSORB THE STRANDED FLIERS WINGS HOLDINGS INC'S NORTHWEST AIRLINES WHICH NORMALLY FLIES A 150SEAT BOEING 727 JET ON ITS AFTERNOON FLIGHT FROM CHICAGO TO DETROIT SWITCHED TO A 400SEAT 747 IN MIAMI USAIR BOARDED 3600 PASSENGERS YESTERDAY INSTEAD OF THE USUAL 2600 CONTINENTAL AIRLINES SWITCHED SOME OF ITS LARGEST PLANES OFF THE HEAVILY TRAVELED HOUSTONDENVER MARKET AND ROUTED THEM TO DALLAS/FORT WORTH BECAUSE OF THE EXPECTED TRAFFIC BUT THERE WILL BE LESS EXCESS CAPACITY TODAY WHEN MANY BUSINESS TRAVELERS RETURN HOME FROM BUSINESS TRIPS AMERICAN'S INTERNATIONAL PASSENGERS FACE THE TOUGHEST CHALLENGE BECAUSE THERE ARE FAR FEWER FLIGHT OPTIONS ABROAD TRAVEL AGENTS REPORTED DELAYS OF FOUR TO SIX HOURS IN MIAMI FOR FLIGHTS TO THE CARIBBEAN APFA PRESIDENT DENISE HEDGES SAID NEGOTIATIONS WITH THE COMPANY BROKE UP AT ABOUT 3 AM YESTERDAY OVER WAGES BENEFITS AND STAFFING LEVELS THE SAME ISSUES THAT HAVE KEPT THE TWO SIDES APART IN MORE THAN A YEAR OF TALKS SHE SAID THE UNION WOULDN'T ACCEPT AMERICAN'S OFFER OF A ONETIME 78 PAY INCREASE PLUS A 3 RAISE FOUR YEARS FROM NOW NO FUTURE TALKS ARE SCHEDULED SHE SAID IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMR SHARES FELL 875 CENTS TO 69 AMERICAN WILL BE UNDER FURTHER PRESSURE TODAY AS ITS PILOTS UNION COUNTS BALLOTS FROM ITS NEARLY 10000 MEMBERS ON WHETHER TO STAGE A SYMPATHY STRIKE IN CONCERT WITH THE FLIGHT ATTENDANTS THE ALLIED PILOTS ASSOCIATION WILL BEGIN AN EMERGENCY MEETING OF ITS BOARD TODAY IN THE MEANTIME THE FAA SAID IT WILL STEP UP ITS INSPECTIONS OF AMERICAN FLIGHTS YESTERDAY THE AGENCY SENT EXTRA INSPECTORS TO 15 AIRPORTS TO MAKE SURE NEWLY TRAINED FLIGHT ATTENDANTS ARE ASSIGNED TO THE PLANES FOR WHICH THEY'RE TRAINED THE AGENCY ALSO SENT ADDITIONAL SECURITY CREWS TO THOSE AIRPORTS IN CASE OF LABOR DISRUPTION AS THE STRIKE DRAGS ON IT'S POSSIBLE THAT MORE FLIGHT ATTENDANTS WILL CROSS THE PICKET LINES LESSENING THE IMPACT AND INCONVENIENCE TO PASSENGERS THE JOB ACTION WAS AN OBSTACLE FOR AMERICAN'S NEGOTIATING TEAM AS WELL AS THOUSANDS OF PASSENGERS YESTERDAY THE TEAM FLEW BACK TO DALLAS FROM NEW ORLEANS ON SOUTHWEST AIRLINES MICHAEL J MCCARTHY IN CHICAGO AND JAMES S HIRSCH IN HOUSTON CONTRIBUTED TO THIS ARTICLE 9311190091 931119 MARKETING & MEDIA ATTORNEYS GENERAL UNITE TO INVESTIGATE PRICING OF CABLE TV NEW YORK ATTORNEYS GENERAL IN 23 STATES ARE ORGANIZING TO INVESTIGATE WHETHER MAJOR CABLETV OPERATORS ARE EVADING THE 1992 CABLE ACT THROUGH PRICE INCREASES AND OTHER MARKETING TACTICS THE STATES WILL LOOK INTO PRICE INCREASES BY CABLE COMPANIES THAT TAKE ADVANTAGE OF LOOPHOLES IN THE LAW WHICH TOOK EFFECT SEPT 1 THE GROUP WILL FOCUS ON AMONG OTHER THINGS NEGATIVE OPTION PRICING THE PRACTICE OF AUTOMATICALLY CHARGING SUBSCRIBERS FOR A PARTICULAR SERVICE UNLESS THEY SPECIFICALLY STATE THEY DON'T WANT THE SERVICE IN A SIMILAR INSTANCE TWO YEARS AGO STATE OFFICIALS PRESSURED CABLE OPERATOR TELECOMMUNICATIONS INC TO HALT THE NEGATIVEOPTION MARKETING OF A MOVIE SERVICE CALLED ENCORE ACCORDING TO FLORIDA ASSISTANT ATTORNEY GENERAL JACK NORRIS THE TASK FORCE WILL WORK WITH THE FCC BUT WILL ALSO FILE SUITS AGAINST SPECIFIC CABLE COMPANIES IF NECESSARY UNDER THE 1992 CABLE ACT BASICCABLE RATES ARE REGULATED BY LOCAL COMMUNITIES WHILE ADDITIONAL LEVELS OF SERVICE ARE REGULATED BY THE FEDERAL COMMUNICATIONS COMMISSION HOWEVER STATES ARGUE THEY HAVE THE POWER TO INTERVENE INTO ANY MATTER WHICH WE BELIEVE IS AN UNFAIR OR DECEPTIVE TRADE PRACTICE SAID ONE STATE OFFICIAL MR NORRIS SAID THE FIVE STATES THAT COMPOSE A STEERING COMMITTEE FOR THE GROUP ARE FLORIDA WISCONSIN ARKANSAS PENNSYLVANIA AND OREGON HE DECLINED TO NAME OTHER PARTICIPATING STATES MEANWHILE THE FCC ANNOUNCED IT IS INVESTIGATING 16 CABLE OPERATORS IN 10 STATES AFTER RECEIVING SPECIFIC COMPLAINTS FROM LOCAL OFFICIALS 9311190090 931119 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 AMERICAN PRESIDENT COS 150 MILLION OF UNSECURED SENIOR NOTES DUE NOV 15 2003 PRICED AS 7125S AT 99272 TO YIELD 7228 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 153 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HARLEYSVILLE GROUP INC 75 MILLION OF NOTES DUE NOV 15 2003 PRICED AS 675S AT 99581 TO YIELD 6808 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 1125 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC MAXUS ENERGY CORP 875 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A 10 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE SHARES NONCALLABLE FOR FIVE YEARS WERE SOLD FOR 25 EACH AT PAR RATED SINGLEB3 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DATA SYSTEMS & SOFTWARE INC TWO MILLION COMMON SHARES PRICED AT 1175 EACH THROUGH UNDERWRITERS LED BY OSCAR GRUSS & SON INC GENETIC THERAPY INC 22 MILLION COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC MILLTRONICS CORP INITIAL PUBLIC AND SECONDARY OFFERING OF 69 MILLION COMMON SHARES PRICED AT 1375 CANADIAN DOLLARS US1045 EACH THROUGH UNDERWRITERS INCLUDING WOOD GUNDY INC MIDLAND WALWYN CAPITAL INC BURNS FRY LTD RBC DOMINION SECURITIES INC AND NESBITT THOMSON INC RIO HOTEL & CASINO INC TWO MILLION COMMON SHARES PRICED AT 1425 EACH THROUGH UNDERWRITERS LED BY RAYMOND JAMES AND VOLPE WELTY & CO TALBOTS INC INITIAL OFFERING OF 11 MILLION COMMON SHARES PRICED AT 1950 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO UNITED VIDEO SATELLITE GROUP INC INITIAL OFFERING OF 41 MILLION CLASS A COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC WEST MARINE INC INITIAL OFFERING OF 16 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES ASIA TIGERS INC INITIAL OFFERING OF 18 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO KOREA FUND INC SIX MILLION COMMON SHARES PRICED AT 1675 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC PUTNAM INVESTMENT GRADE MUNICIPAL TRUST III INITIAL OFFERING OF FOUR MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC BATTERY PARK CITY AUTHORITY NEW YORK 4658 MILLION OF REFUNDING BONDS PRICED BY A MORGAN STANLEY & CO GROUP INCLUDED ARE 3395 MILLION OF SERIES 1993A SENIOR REVENUE REFUNDING BONDS PRICED TO YIELD FROM 48 IN 2001 TO 57 IN 2020 THESE BONDS WERE RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE AUTHORITY'S 1263 MILLION OF SERIES 1993A JUNIOR REVENUE REFUNDING BONDS ARE PRICED TO YIELD 58 IN 2022 AND 57 IN 2023 MOODY'S AND S&P HAVE RATED THEM SINGLEA HOUSING NEW YORK CORP 2621 MILLION OF SERIES 1993 SENIOR REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 495 IN 2002 TO 57 IN 2020 MOODY'S RATED THE ISSUE SINGLEA1 AND S&P IS EXPECTED TO ASSIGN A DOUBLEA RATING FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 19931648 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 65 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 385 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993247 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 367 MILLION OF SWAPS TRUST 5 OFFERED BY SALOMON BROTHERS INC THE OFFERING IS BACKED BY THE AGENCY'S REMIC 1993195 CLASS A FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993246 IS BACKED BY STRIPS AND VARIOUS REMIC CLASSES FROM OUTSTANDING DEALS COLLATERAL CONSISTS OF STRIPS TRUST 250 PRINCIPALONLY SECURITIES REMIC 199250 CLASS SA REMIC 1992150 CLASS FQ REMIC 199321 CLASS SA AND REMIC 1993216 CLASS D AND CLASS DA DISCOVER 833 MILLION ISSUE OF CREDITCARD ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC THE DISCOVER CARD IS ISSUED BY GREENWOOD TRUST CO A UNIT OF DEAN WITTER DISCOVER & CO THE 800 MILLION OF CLASS A SENIOR CERTIFICATES WAS PRICED AS 54S AT 99536 TO YIELD 557 A 48BASISPOINT SPREAD ABOVE THE WHENISSUED FIVEYEAR TREASURY THE CERTIFICATES WITH AN AVERAGE LIFE OF FIVE YEARS WERE RATED TRIPLEA BY MOODY'S S&P AND FITCH INVESTORS SERVICE INC THE 3333 MILLION OF CLASS B SUBORDINATE CERTIFICATES WAS PRICED AS 575S AT 99628 TO YIELD 598 A 70BASISPOINT SPREAD ABOVE TREASURYS THE CERTIFICATES WITH A 56YEAR AVERAGE LIFE WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P AND FITCH AUSTRALIAN INDUSTRY DEVELOPMENT CORP AUSTRALIAN AGENCY 100 MILLION AUSTRALIAN DOLLARS OF 675 EUROBONDS DUE JAN 6 2004 AT ISSUE PRICE 1012 VIA HAMBROS BANK LTD BONDS YIELD 686 AT COMANAGERS' BREAKEVEN PRICE OF 992 A SPREAD OF 155 BASIS POINTS ABOVE COMPARABLE AUSTRALIANGOVERNMENT BOND GUARANTOR AUSTRALIAN GOVERNMENT FEES 2125 LESS 0125 FOR LEAD MANAGER BANCO DI NAPOLI LONDON ITALIAN PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE DEC 16 1998 AT ISSUE AND REOFFER PRICE 9945 VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK REOFFERED RATE PLUS 30 BASIS POINTS FEES 025 BANK OF AMERICA US PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE DECEMBER 1998 AT ISSUE AND REOFFER PRICE 9988 VIA SALOMON BROTHERS INTERNATIONAL PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS 20 BASIS POINTS CALLABLE IN YEAR THREE FEES 0245 BANK OF AMERICA IS A BANKAMERICA CORP UNIT BAVARIA GERMAN STATE 200 MILLION MARKS OF 6 BONDS DUE NOV 24 2003 AT ISSUE PRICE 10038 VIA BAYERISCHE VEREINSBANK AG REOFFERED AT 9933 TO YIELD 609 A SPREAD OF 30 BASIS POINTS ABOVE 6 GERMAN BUND OF 2003 FEES 1375 CITICORP US 250 MILLION OF FLOATINGRATE EURONOTES DUE DECEMBER 1995 AT ISSUE AND REOFFER PRICE 99875 VIA LEHMAN BROTHERS PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 0125 FEES 0123 CREDIT LOCAL DE FRANCE FRENCH AGENCY 100 MILLION OF FLOATINGRATE EURONOTES DUE DECEMBER 1998 AT ISSUE AND REOFFER PRICE 11019 VIA MORGAN STANLEY INTERNATIONAL PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR PLUS 2 FEES 02 DEUTSCHE BANK FINANCE NV CURACAO GERMAN PARENT 200 BILLION ITALIAN LIRE OF 825 EUROBONDS DUE JAN 7 2004 AT ISSUE PRICE 10167 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 830 AFTER FEES OF 2 POINTS GUARANTOR DEUTSCHE BANK AG DEUTSCHE PFANDBRIEF UND HYPOTHEKEN BANK AG GERMANY 150 MILLION MARKS OF COLLARED REVERSECOUPON FLOATINGRATE EURONOTES DUE JAN 5 2004 AT ISSUE PRICE 10104 VIA DG BANK ANNUAL COUPON 55 FOR FIRST TWO YEARS THEREAFTER AT SIXMONTH MARK LIBOR LESS 0125 MINIMUM COUPON 5 MAXIMUM 7 FEES 115 KAMIGUMI CO JAPAN 450 MILLION MARKS OF 1625 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE DEC 9 1997 AT ISSUE PRICE PAR VIA NOMURA BANK DEUTSCHLAND GMBH WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM DEC 20 TO DEC 2 1997 TERMS FIXED NOV 24 INDICATED PREMIUM 25 THURSDAY'S CLOSING SHARE PRICE 1210 YEN FEES 225 LESS 0125 DEDUCTED FOR LEAD MANAGER KOREA ELECTRIC POWER CORP SOUTH KOREA 135 BILLION OF GLOBAL BONDS DUE DEC 1 2003 PRICED AS 6375S AT 98551 TO YIELD 6575 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE US TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEES 0375 PHATRA THANAKIT PUBLIC CO THAILAND 150 MILLION OF SUBORDINATED CONVERTIBLE EUROBONDS DUE DECEMBER 2003 AT ISSUE PRICE PAR VIA SG WARBURG SECURITIES LTD INDICATED COUPON 35 TO 4 BONDS CONVERTIBLE INTO ORDINARY SHARES AT INDICATED PREMIUM 11 TO 15 THURSDAY'S CLOSING SHARE PRICE 704 THAI BAHT TERMS EXPECTED TO BE FIXED NOV 29 BONDS CALLABLE AFTER THREE YEARS AT PAR SUBJECT TO PREVAILING SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE FEES 25 LESS 02 FOR LEAD MANAGER PHILIPPINE NATIONAL BANK PHILIPPINES 150 MILLION OF 6625 EUROBONDS DUE DEC 9 1996 AT ISSUE AND REOFFER PRICE 99875 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 6672 A SPREAD OF 220 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 08 PETROLEOS MEXICANOS SA MEXICO 250 MILLION OF BONDS DUE DEC 1 2023 PRICED AS 8625S AT 99872 TO YIELD 8637 THE NONCALLABLE RULE 144A DEBT WAS PRIVATELY PLACED AT A SPREAD OF 220 BASIS POINTS ABOVE US TREASURYS RATED BA2 BY MOODY'S THE ISSUE WILL BE PLACED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO NORTH RHINEWESTPHALIA GERMAN STATE 500 MILLION MARKS OF 65 BONDS DUE DEC 21 2023 AT ISSUE PRICE 10194 VIA GOLDMAN SACHS & CO AND WESTDEUTSCHE LANDESBANK GIROZENTRALE REOFFERED AT 9994 TO YIELD 6505 A SPREAD OF 71 BASIS POINTS ABOVE 6 GERMAN BUND OF 2003 FEES 25 RHEINLANDPFALZ GERMAN STATE 100 MILLION MARKS OF 65 BONDS DUE JAN 12 2024 AT ISSUE PRICE 1016 VIA BAYERISCHE VEREINSBANK AG REOFFERED AT 996 TO YIELD 6531 A MARGIN OF 72 BASIS POINTS OVER 6 GERMAN BUND OF 2003 FEES 25 RHEINLANDPFALZ GERMAN STATE 100 MILLION MARKS OF 65 BONDS DUE JAN 12 2024 AT ISSUE PRICE 10185 VIA LANDESBANK RHEINLANDPFALZ GIROZENTRALE REOFFERED AT 9985 TO YIELD 651 A SPREAD OF 72 BASIS POINTS ABOVE 6 GERMAN BUND DUE 2003 FEES 25 SWEDEN SOVEREIGN 300 MILLION OF 4625 EUROBONDS DUE JAN 10 1997 AT ISSUE PRICE 1009675 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 9978 TO YIELD 4705 A SPREAD OF 18 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1375 9311190089 931119 INTERNATIONAL LOWER HOUSE CLEARS REFORMS OF JAPAN POLITICS APPROVAL WAS BIG HURDLE FOR BILLS TO TOUGHEN CAMPAIGN FUNDING LAW BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO PRIME MINISTER MORIHIRO HOSOKAWA'S PLAN TO OVERHAUL JAPAN'S POLITICAL SYSTEM CLEARED ITS BIGGEST HURDLE WINNING APPROVAL FROM THE LOWER HOUSE OF PARLIAMENT OPTIMISTS SAY THE POLITICAL REFORM BILLS WHICH TOUGHEN CAMPAIGN FUNDING LAWS AND CHANGE THE RULES FOR ELECTING NATIONAL LEGISLATORS ULTIMATELY WILL MAKE THE COUNTRY'S NOTORIOUSLY CORRUPT COMPLEX POLITICS CLEANER AND CLEARER THAT WOULD PLEASE NOT ONLY JAPAN'S CITIZENS BUT THE US AND OTHER ALLIES LONG FRUSTRATED BY TOKYO'S IMPENETRABLE DECISIONMAKING PROCESS THE REFORM BILLS ARE A WAY OF TAKING ON A GREATER ROLE IN THE WORLD SAID ICHIRO OZAWA CHIEF STRATEGIST FOR THE RULING COALITION THEY ALSO WILL MAKE JAPANESE POLITICS MORE TRANSPARENT SAID KAZUO OGURA A TOP FOREIGN MINISTRY OFFICIAL BECAUSE THE NEW RULES WILL FORCE MORE OPEN POLITICAL COMPETITION AND DEBATE JAPAN'S BLACKBOX' TYPE OF POLICYMAKING WILL BE CHANGED IN THE SHORT TERM BACKERS SAY THURSDAY'S VICTORY WILL ALSO GIVE MR HOSOKAWA NEW POLITICAL STRENGTH TO TACKLE AN AMBITIOUS AGENDA OF ECONOMIC AND REGULATORY REFORMS JAPAN'S DIPLOMATS HOPE FOR EXAMPLE THE PREMIER IS NOW FREE TO END A BAN ON RICE IMPORTS A POLITICALLY DIFFICULT MOVE CONSIDERED NECESSARY TO SAVE THE CURRENT ROUND OF FREETRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WASHINGTON HAS KEPT THE HEAT OFF JAPAN IN RECENT WEEKS TO LET MR HOSOKAWA FOCUS ON DOMESTIC REFORM BUT MR HOSOKAWA LEAVES FOR SEATTLE TODAY TO MEET WITH PRESIDENT CLINTON AND MR CLINTON IS EXPECTED TO RESUME PRESSURE FOR JAPAN TO CUT ITS TRADE SURPLUS PESSIMISTS SAY JAPANESE POLITICS ARE NOW PLUNGING INTO DARKNESS MR HOSOKAWA'S SEVENPARTY COALITION CAME TOGETHER BECAUSE ALL PARTIES AGREED ON THE NEED FOR POLITICAL REFORM WITH THAT TASK ESSENTIALLY COMPLETE IT REMAINS TO BE SEEN WHETHER HE CAN HOLD TOGETHER HIS FOURMONTHOLD ALLIANCE OF URBAN AND RURAL INTERESTS SOCIALISTS AND ARCHCONSERVATIVES EXBUREAUCRATS AND ANTIBUREAUCRATS EVEN IN THURSDAY'S VOTE FIVE SOCIALIST COALITION MEMBERS OPPOSED MR HOSOKAWA'S PLANS LONGER TERM SOME CRITICS FEAR GRIDLOCK NO SINGLE PARTY WILL BE ABLE TO TAKE LEADERSHIP SAID POLITICAL ANALYST TAKAYOSHI MIYAGAWA THE ITALYIZATION OF JAPAN WILL BEGIN THE STOCK MARKET REACTION TO THE VOTE WAS MIXED AS THE NIKKEI INDEX ROSE JUST 5761 POINTS THURSDAY TO 1816632 TRADERS SAID THAT REFLECTED UNCERTAIN FEELINGS ABOUT MR HOSOKAWA GAISHI HIRAIWA CHAIRMAN OF THE KEIDANREN THE BIG BUSINESS LOBBY GAVE ONLY LUKEWARM PRAISE TO THE VOTE NOTING THE RECESSION IS QUITE SERIOUS HE SAID HE HOPES PARLIAMENT WILL NOW FOCUS ON MEASURES TO SHORE UP THE ECONOMY SOME BUSINESS LEADERS FEEL MR HOSOKAWA'S DEREGULATION PLANS COULD HURT CERTAIN SECTORS OF THE ECONOMY THE 270TO226 VOTE WAS THE SECOND ACT OF A POLITICAL DRAMA THE TRANSFORMATION OF JAPAN'S POSTWAR POLITICAL ORDER THAT STARTED IN THE SUMMER AND WILL LIKELY UNFOLD OVER SEVERAL YEARS THE FIRST ACT BEGAN IN JUNE WHEN THE RULING LIBERAL DEMOCRATIC PARTY RUPTURED AFTER 38 YEARS IN POWER IN A CIVIL WAR OVER REFORM MR HOSOKAWA TOOK OFFICE IN AUGUST BACKED BY PROREFORM DEFECTORS FROM THE LDP VOWING TO PASS THE CHANGES THIS YEAR THE BILLS STILL NEED TO CLEAR THE UPPER HOUSE OF THE DIET WHICH WILL TAKE ABOUT A MONTH MR HOSOKAWA CAUTIONED THAT HE HAD COMPLETED ONLY A THIRD OF THE JOURNEY BUT THE RULING COALITION'S MAJORITY IS MUCH GREATER IN THAT CHAMBER AND PASSAGE IS CONSIDERED LIKELY THE NEXT ACT OF THIS POLITICAL PLAY WILL BE POLITICAL REALIGNMENT RESHAPING EVEN MERGING EXISTING POLITICAL PARTIES AND REDEFINING THE WAY POLITICIANS DEAL WITH EACH OTHER WITH BUREAUCRATS WITH BUSINESS AND WITH THE PEOPLE A HISTORIC CHANGE IN JAPANESE POLITICS IS TAKING PLACE SAID COMMENTATOR HISAYUKI MIYAKE UNDER THE OLD SYSTEM THE LDP HAD A CERTAIN MAJORITY AND LEFT CRUCIAL DECISIONS TO BUREAUCRATS BUT THE LDP'S LONG REIGN ALSO BRED ARROGANCE AND CORRUPTION DECISIONS WERE MADE BEHIND CLOSED DOORS MAKING THEM DIFFICULT FOR OUTSIDERS INCLUDING FOREIGNERS TO AFFECT OR EVEN UNDERSTAND POLICYMAKING BECAME PARALYZED BECAUSE LEADERS WERE UNWILLING TO UPSET THE OLD BALANCE JAPAN'S ELECTORAL SYSTEM WAS BLAMED LAWS DID LITTLE TO STOP HEAVY CAMPAIGN CONTRIBUTIONS THE UNIQUE MULTISEAT DISTRICT IN WHICH ONE DISTRICT ELECTED AS MANY AS SIX PEOPLE TO THE NATIONAL PARLIAMENT MEANT THAT ONE PARTY RAN MULTIPLE CANDIDATES SEVERAL OF WHOM COULD WIN AS A RESULT THEY OFTEN COMPETED WITH MONEY AND FAVORS AND LESS ON POLICY IN FUTURE ELECTIONS JUST OVER HALF THE SEATS IN PARLIAMENT WILL BE CHOSEN FROM SINGLESEAT DISTRICTS THE REMAINDER WILL BE ALLOCATED THROUGH PROPORTIONAL REPRESENTATION IN WHICH PARTIES GET A NUMBER OF SEATS BASED ON THEIR SHARE OF THE NATIONAL VOTE THE NEW LAWS WILL BAN DIRECT CORPORATE CONTRIBUTIONS TO CANDIDATES THE NEW RULES ARE ALREADY SHAKING THINGS UP UNDER THE SINGLESEAT SYSTEM THE PARTIES WILL HAVE TO CHOOSE JUST ONE PERSON TO REPRESENT THEM IN EACH DISTRICT MEANING THAT THE LDP WHICH HAS MULTIPLE MEMBERS IN MANY DISTRICTS WILL PROBABLY HAVE TO DROP INCUMBENTS MR MIYAGAWA ESTIMATES THAT 43 LDP MEMBERS WILL LOSE THEIR SEATS AS A RESULT TENSIONS IN THE PARTY WERE EVIDENT THURSDAY AS NEARLY 20 MEMBERS EITHER VOTED FOR MR HOSOKAWA'S BILLS OR ABSTAINED THE RULING COALITION WHICH IS TRYING TO LURE FRESH LDP DEFECTORS GREETED EACH SUCH VOTE WITH LOUD CHEERS EVEN A FORMER LDP PRIME MINISTER TOSHIKI KAIFU LEFT THE CHAMBERS TO AVOID OPPOSING THE BILLS MR KAIFU WAS TOPPLED IN 1991 AFTER FAILING TO WIN HIS PARTY'S BACKING FOR REFORM NHK JAPAN'S PUBLIC BROADCASTER PROJECTED THAT IF THE COALITION CAN HOLD TOGETHER IT WOULD LIKELY WIN 297 OF THE 500 SEATS IN THE NEXT ELECTION IF THE COALITION SPLITS AND THE LDP STAYS TOGETHER THE OLD RULING PARTY WOULD WIN 313 SEATS NHK SAID IN A SERIES OF ELECTIONS OVER THE NEXT FEW YEARS THE REFORMERS HOPE JAPAN WILL MOVE TOWARD AMERICANSTYLE POLITICS IN WHICH PARTIES COMPETE A MAJOR TWOPARTY SYSTEM WILL EMERGE SAID IKUO KABASHIMA A POLITICAL SCIENTIST AT TSUKUBA UNIVERSITY THE TRUE MEASURE OF POLITICAL REFORM'S SUCCESS WILL DEPEND ON ONE OF MR HOSOKAWA'S NEXT CRUSADES BUREAUCRATIC REFORM FOR YEARS CYNICS HAVE SAID THAT CHANGES IN JAPAN'S POLITICAL WORLD WERE LARGELY IRRELEVANT BECAUSE THE MANDARINS REALLY HELD CONTROL COMPETITIVE POLITICS THE REFORMERS SAY WILL SHIFT POWER AWAY FROM THE APPOINTED BUREAUCRACY AND TO ELECTED REPRESENTATIVES SO FAR THE BUREAUCRATS HAVE RESISTED MR HOSOKAWA'S PLANS BUT IF MR HOSOKAWA HAS A STRONG POSSIBILITY TO REMAIN IN OFFICE A LONG TIME THEN THE ATTITUDE OF THE BUREAUCRATS WILL CHANGE SAID ISAMU MIYAZAKI A MEMBER OF THE PRIME MINISTER'S SPECIAL DEREGULATION PANEL 9311190088 931119 CHICAGO BOARD PROBES LARGE FUTURES TRADES INVOLVING PRUDENTIAL CHICAGO THE CHICAGO BOARD OF TRADE IS INVESTIGATING LARGE TRADES IN ITS SOYBEAN AND CORN FUTURES PITS THAT REPORTEDLY WERE EXECUTED WITHOUT AUTHORIZATION BY A DISGRUNTLED FORMER EMPLOYEE OF PRUDENTIAL SECURITIES INC PEOPLE CLOSE TO THE INVESTIGATION SAID THE FORMER EMPLOYEE USED PRUDENTIAL TRADING ACCOUNTS TO ORDER FUTURES CONTRACTS REPRESENTING ABOUT 14 MILLION BUSHELS OF SOYBEANS AND EIGHT MILLION BUSHELS OF CORN THE TRADES THESE PEOPLE SAID APPARENTLY WERE DISGUISED AS A CUSTOMER ORDER WHEN PRUDENTIAL LEARNED OF THE UNAUTHORIZED TRANSACTIONS WHICH OCCURRED WITHIN THE PAST TWO WEEKS IT LIQUIDATED THE TRADES AT A LOSS OF ABOUT 500000 THE PEOPLE SAID A PRUDENTIAL OFFICIAL WAS UNAVAILABLE FOR COMMENT PRUDENTIAL IS A PRUDENTIAL INSURANCE CO OF AMERICA UNIT 9311190087 931119 REVIEW & OUTLOOK EDITORIAL ASIDES AUTO WORLDS WE SEE WHERE THE CLINTON JUSTICE DEPARTMENT IS SUING GENERAL MOTORS' SPINOFF OF A TRANSMISSION DIVISION TO A GERMAN FIRM ON ANTITRUST GROUNDS THE NEXT DAY WE READ THAT CHRYSLER HAS SOLD ITS RECENTLY ACQUIRED LAMBORGHINI TO A GROUP OF INDONESIAN BUSINESSMEN WITH TIES TO A CALIFORNIA MAKER OF UPSCALE SPORTS CARS WE HOPE THE OVER 150000 CAR MARKET ISN'T BECOMING TOO CONCENTRATED FOR JUSTICE 9311190086 931119 HOW TO MEET THE THIRD WORLD MISSILE THREAT BY ROBERT JASTROW AND MAX M KAMPELMAN ON MAY 29 OF THIS YEAR NORTH KOREA TESTED A NEW BALLISTIC MISSILE THE NO DONG 1 IN THE DIRECTION OF JAPAN THE NEW MISSILE CAN REACH OSAKA THE CIA REPORTED LAST SPRING THAT NORTH KOREA IS SELLING IT TO IRAN IN LARGE QUANTITIES LAUNCHED FROM IRAN THE NO DONG 1 CAN ATTACK TEL AVIV OR RIYADH WITH NUCLEAR CHEMICAL OR BIOLOGICAL WEAPONS AN EVEN MORE POWERFUL NO DONG 2 MISSILE COULD REACH ROME FROM LIBYA THE NORTH KOREAN NUCLEAR WEAPONS PROGRAM IS ALSO PROGRESSING RAPIDLY SPY SATELLITE PHOTOS OF A LARGE NORTH KOREAN NUCLEAR REACTOR INDICATE POTENTIAL PRODUCTION OF UP TO 100 POUNDS OF PLUTONIUM A YEAR ENOUGH FOR SIX HIROSHIMASIZED NUCLEAR WEAPONS CIA CHIEF JAMES WOOLSEY SAYS NORTH KOREA APPARENTLY IS WILLING TO SELL ITS MISSILES AND NUCLEAR WEAPONS TO ANYONE IN ADDITION TO NORTH KOREA AS A SOURCE FOR ITS NUCLEAR WEAPONS IRAN CAN PROBABLY OBTAIN THEM FROM THE REPUBLICS OF THE FORMER SOVIET UNION WHICH HAVE IT IS ESTIMATED AT LEAST 33000 NUCLEAR WEAPONS AMONG THEM WHAT IS MORE IRAN AND OTHER TERRORIST STATES ARE ATTEMPTING WITH LARGE SUMS OF MONEY TO ATTRACT FORMER SOVIET NUCLEAR SCIENTISTS TO THEIR SERVICE HOW CAN THE US DEAL WITH THESE PROBLEMS THE PENTAGON'S BALLISTIC MISSILE DEFENSE ORGANIZATION SUCCESSOR TO THE MUCHMALIGNED STRATEGIC DEFENSE INITIATIVE STAR WARS WAS SET UP IN MAY TO DEVELOP WAYS OF NEUTRALIZING THE MISSILE THREAT MOST OF ITS BUDGET HAS BEEN SET ASIDE FOR THE ARMY'S THAAD AND ITS RADARS THAAD THEATER HIGH ALTITUDE AREA DEFENSE IS A NONNUCLEAR DEVICE THAT STEERS ITSELF INTO THE PATH OF AN ONCOMING MISSILE AND DESTROYS IT BY FORCE OF IMPACT THE TROUBLE WITH THAAD IS THAT IT WILL NOT BE AVAILABLE UNTIL THE TURN OF THE CENTURY THE THREAT HOWEVER IS MUCH MORE IMMINENT TO ISRAEL SAUDI ARABIA AND MANY OTHER FRIENDS OF THE US FURTHERMORE WHEN THAAD BECOMES AVAILABLE IT WILL STILL BE UNABLE TO HANDLE AN ATTACK IN WHICH THE ONCOMING MISSILE THROWS OUT A FLOCK OF DECOYS WE LEARNED ABOUT DECOYS THE HARD WAY IN THE GULF WAR WHEN THE IRAQIS ATTACKED ISRAEL AND SAUDI ARABIA WITH SCUDS THAT HAD BEEN REBUILT TO INCREASE THEIR RANGE THE MAKESHIFT ROCKETS BROKE INTO FRAGMENTS DURING THEIR FLIGHT AND PRESENTED OUR PATRIOT MISSILES WITH A NUMBER OF MOVING TARGETS MOST OF THE TIME THE PATRIOTS COULD NOT IDENTIFY THE ROCKET AND PURSUED ONE OF THE FRAGMENTS CLUSTER MUNITIONS ARE AN EVEN MORE FORMIDABLE CHALLENGE TO OUR MISSILE DEFENSES THESE ARE CLUSTERS OF 50 TO 100 BOMBLETS PACKED INTO ONE WARHEAD THE BOMBLETS ARE RELEASED DURING THE MISSILE'S FLIGHT AND SEPARATE AS THEY ARC THROUGH SPACE BY THE TIME THEY REACH THEIR TARGET THEY ARE SCATTERED OVER AN AREA OF SEVERAL SQUARE MILES THE NEW THAAD ANTIMISSILE WOULD ALSO BE POWERLESS AGAINST THESE CLUSTER MUNITIONS DEFENSE EXPERTS HAVE CONCLUDED THAT THE DEFENSE MUST INTERCEPT AND DESTROY AN ATTACKING MISSILE PROMPTLY ENOUGH AFTER ITS LAUNCH TO CATCH IT WHILE ITS EGGS ARE STILL IN ONE BASKET BEFORE IT HAS DEPLOYED ITS DEADLY CLUSTER OF BOMBLETS THAT MEANS INTERCEPTING THE MISSILE EARLY IN ITS FLIGHT EITHER IN THE BOOST PHASE WHILE IT IS STILL BURNING OR IMMEDIATELY THEREAFTER IN THE ASCENT PHASE WHILE IT IS CLIMBING TO HIGHER ALTITUDES THE DEFENSE MOST LIKELY TO BE AVAILABLE IN TIME TO MEET THE THREAT IS A SQUADRON OF B52S OR F15S OR OTHER MILITARY AIRCRAFT EACH CARRYING A LARGE NUMBER OF HEATSEEKING ANTIMISSILES DURING TIMES OF TENSION THESE PLANES WOULD HAVE TO BE IN THE AIR ON CONTINUOUS PATROL THE OPERATION WILL BE COSTLY BUT NECESSARY IN A CRISIS THE PLANES WILL NEED PROMPT WARNING OF A HOSTILE LAUNCH TO CATCH THE ATTACKING MISSILES NEAR THE START OF THEIR FLIGHT BEFORE THEY DEPLOY THEIR CLUSTER MUNITIONS OR DECOYS SATELLITES CARRYING INSTRUMENTS FOR DETECTING THE MISSILE'S HEAT ARE BEST FOR THAT TASK THE INSTRUMENTS CAN ALSO BE CARRIED BY DRONESHIGHALTITUDE UNMANNED AIRCRAFT POWERED BY SOLAR CELLS AND BATTERIES WHICH COULD STAY IN THE AIR FOR DAYS OR WEEKS AT A TIME THE DRONES COULD ALSO CARRY THE HEATSEEKING ANTIMISSILES NEEDED TO DESTROY THE ATTACKING MISSILE IN ADDITION TO THE INSTRUMENTS FOR DETECTING ITS LAUNCH A DRONE PATROL WOULD BE LESS COSTLY THAN KEEPING MANNED AIRCRAFT IN THE AIR CONTINUOUSLY ON THE OTHER HAND A DEFENSE BUILT AROUND MANNED AIRCRAFT CAN BE AVAILABLE SOONER IN VIEW OF THE CLEAR INDICATION OF A RAPIDLY GROWING CAPABILITY FOR MASS MAYHEM ON THE PART OF TERRORIST STATES IT SEEMS EVIDENT THAT THE DEVELOPMENT OF DRONES AND OTHER ASCENTPHASE AND BOOSTPHASE DEFENSES IS A PRIME REQUIREMENT FOR THE SECURITY OF THE US AND FRIENDLY NATIONS BUT STRONG SENTIMENT EXISTS IN CONGRESS TO TERMINATE THE PROMISING DRONE DEFENSE WILL THE US UNDERSTAND THE NATURE AND EXTENT OF THE THREAT FROM OUTLAW STATES AND ACT IN TIME TO DEVELOP DEFENSES FOR OUR FORCES OVERSEAS AND OUR ALLIES THAT IS UNCERTAIN THE PEJORATIVE TERM STAR WARS STILL BLINDS MANY MEMBERS OF CONGRESS IT IS EASY FOR A SLOGAN TO REPLACE THOUGHT EVEN CONGRESSMEN WHO ARE STAUNCH CHAMPIONS OF ISRAEL REMAIN OBLIVIOUS TO THE FACT THAT ACTIONS TAKEN TO CANCEL OR SLOW THE BOOSTPHASE AND ASCENTPHASE DEFENSES AGAINST MISSILES THREATEN THE VERY EXISTENCE OF ISRAEL AND MANY OF OUR OTHER FRIENDS AND ALLIES OUR ALLIES IN THE MIDDLE EAST AND EUROPE WILL SOON BE EXPOSED TO THIS DEVASTATING THREAT IF THE VULNERABILITY OF OUR MISSILE DEFENSES TO CLUSTER MUNITIONS AND DECOYS IS NOT REMEDIED A NEW MIDDLE EAST WAR A NUCLEAR ATTACK ON ISRAEL OR THE BRUTAL CONQUEST OF ANOTHER OILRICH KINGDOM COULD SEE THE US POWERLESS TO RESPOND BECAUSE WE AND OUR ALLIES WOULD BE HELD HOSTAGE BY THIRD WORLD MISSILES AIMED AT THE CAPITALS OF EUROPE MR JASTROW A PHYSICIST IS DIRECTOR OF THE MOUNT WILSON INSTITUTE IN PASADENA CALIF MR KAMPELMAN HEADED THE US DELEGATION TO THE NEGOTIATIONS ON NUCLEAR AND SPACE ARMS IN GENEVA FROM 1985 TO 1989 9311190085 931119 POTOMAC WATCH AFTER NAFTA BILL GIVES SHAFTA TO SPENDING CUTS BY PAUL A GIGOT WHEN BILL CLINTON CALLED JANE HARMAN RECENTLY THE CALIFORNIA DEMOCRAT KNEW SHE'D BE LOBBIED ON NAFTA WHAT SURPRISED HER WAS THE PRESIDENT'S FERVOR AGAINST SPENDING CUTS SHE FAVORS I ASSUME THE REASON HE CALLED ME WAS NAFTA SAYS MS HARMAN WHO REPRESENTS A SWING DISTRICT NEAR LOS ANGELES BUT YES HE DID EXPRESS HIS CONCERN ABOUT THE CUTS MR CLINTON HAS JUST HAD THE BEST WEEK OF HIS PRESIDENCY PASSING NAFTA WITH 132 REPUBLICAN VOTES OR 75 OF THE HOUSE GOP CAUCUS DEMOCRATS MUSTERED 102 VOTES OR SOME 40 OF THEIR SEATS AS MOST LIBERALS REJECTED THEIR PRESIDENT THIS SPLENDID VICTORY WOULD SUGGEST AN OPENING FOR A NEW CENTRIST GOVERNING COALITION RIGHT WELL DON'T BET ON IT AS HIS LOBBYING OF MS HARMAN SUGGESTS THE FICKLE SUITOR THAT IS THE CLINTON PRESIDENCY IS ALREADY RETURNING TO THE LIBERALS FIRST STRATEGY THAT HAS DOMINATED ITS FIRST YEAR NEWT GINGRICH MAY BE A ONENIGHT STAND THE EVIDENCE IS MR CLINTON'S BEHINDTHESCENES CAMPAIGN TO KILL THAT POLITICAL MIRACLE A CONGRESSIONAL DRIVE FOR SPENDING CUTS REMEMBER THIS YEAR'S TAX INCREASE AS A PRICE FOR VOTING AYE MINNESOTA DEMOCRAT TIM PENNY WON THE PROMISE OF A VOTE THIS FALL TO CUT SPENDING IT TURNS OUT HE WASN'T KIDDING THOUGH PERHAPS MR CLINTON WAS WITH REPUBLICAN BUDGET EXPERT JOHN KASICH OF OHIO MR PENNY HAS ASSEMBLED A BIPARTISAN COALITION TO CUT 103 BILLION OVER FIVE YEARS THAT'S HARDLY DRACONIAN AMOUNTING TO JUST ONE CENT ON THE DOLLAR OF FEDERAL SPENDING SOME OF THEIR CUTS WERE SUBMITTED BY MR CLINTON HIMSELF THIS YEAR BUT WERE KILLED BY LIBERALS OTHERS HAIL FROM AL GORE'S REINVENTING GOVERNMENT PLAN WE USED A SCALPEL NOT A MEAT AX SAYS MS HARMAN WHO HELPED SELECT THE CUTS ENOUGH MEMBERS ESPECIALLY OTHER FRESHMEN AGREED WITH HER THAT ONLY TWO WEEKS AGO IT LOOKED LIKE THE CUTS WOULD PASS THEN MR CLINTON THREW HIS STEALTH LEFT HOOK WHILE LOBBYING DEMOCRATS ON NAFTA MR CLINTON ALSO PUT IN A BAD WORD FOR PENNYKASICH WE HAVE THE SAME OLD PROBLEM THE LEADERSHIP AND THE PRESIDENT QUIPS BOB KERREY THE NEBRASKA DEMOCRAT WHO IS SPONSORING SIMILAR CUTS IN THE SENATE HOUSE LIBERALS HAVE DEVOTED AT LEAST THREE WHIP MEETINGS TO THE SUBJECT EARLIER THIS WEEK THEY MOBILIZED THE USUAL SPENDING INTERESTS UNIONS FEDERAL EMPLOYEES AGAINST THE CUTS ALL OF WHICH PUZZLES MR PENNY WHO THOUGHT HE WAS DOING MR CLINTON A FAVOR POLITICALLY IT'D BE SMART FOR HIM TO ACCEPT THE CUTS SAYS THE 42YEAROLD WHO HAS BEEN LIBERATED TO BE CANDID BECAUSE HE PLANS TO RETIRE NEXT FALL IT WOULD ESTABLISH HIM AS A PRESIDENT WHO IS WILLING TO SET PRIORITIES WITH GOVERNMENT MR CLINTON WOULDN'T EVEN HAVE TO CAMPAIGN FOR THE CUTS BUT COULD TAKE CREDIT WHEN THEY HAPPENED MR PENNY TRIED THIS ARGUMENT WITH WHITE HOUSE COUNSELOR DAVID GERGEN WHO WAS SYMPATHETIC BUT REFERRED HIM TO CHIEF OF STAFF MACK MCLARTY WHO SENT HIM TO BUDGET DIRECTOR LEON PANETTA WHO FINALLY MET WITH MR PENNY YESTERDAY TO LITTLE AVAIL WITH A VOTE ON PENNYKASICH SET FOR THIS WEEKEND THIS LOOKS LIKE A STALL THE OFFICIAL WHITE HOUSE LINE ON THIS IS SO CONTRADICTORY IT CAN'T POSSIBLY BE HONEST SUBSTANTIAL ADDITIONAL DEFICIT REDUCTION AT THIS TIME COULD SLOW THE GROWTH OF THE ECONOMY AT A CRUCIAL POINT TESTIFIED ALICE RIVLIN THE DEPUTY BUDGET DIRECTOR YET ONLY SIX MONTHS AGO IN ORDER TO SELL THE TAX INCREASE SHE AND MR CLINTON WERE SAYING THE OPPOSITE THAT THE DEFICIT HAD TO GO DOWN FOR THE SAKE OF THE ECONOMY MS RIVLIN LIKE HER PRESIDENT IS A KEYNESIAN ONLY WHEN IT'S CONVENIENT THEIR OTHER ARGUMENT IS THAT CONGRESS CAN'T CUT MEDICARE NOW BECAUSE THOSE CUTS MUST FINANCE HILLARY'S HEALTH PLAN BUT AS MR PENNY SAYS WHY NOT LOCK IN WHAT WE CAN NOW HE ALSO POINTS OUT THE PARADOX OF A WHITE HOUSE USING CUTS IN EXISTING MEDICARE BENEFITS TO SUBSIDIZE ITS PLAN FOR NEW MEDICARE BENEFITS ON DRUGS AND NURSINGHOME CARE IF YOU THINK MEDICARE IS ALREADY A BOTTOMLESS PIT WAIT UNTIL YOU SEE WHAT HAPPENS WITH THOSE NEW BENEFITS MR PENNY ADDS ALL OF THIS WOULD SEEM TO SAY A LOT ABOUT MR CLINTON'S REAL AGENDA CUTTING THE DEFICIT IS WAY DOWN HIS LIST OF PRIORITIES MR PENNY CONCLUDES WITH SOME REGRET HE WANTS TO BE REMEMBERED AS A MODERNDAY ROOSEVELT SOMEONE WHO PUTS IN PLACE A PROGRAM THAT WILL BE REMEMBERED FOR GENERATIONS HEALTH CARE IS HOW HE PLANS TO WIN BACK THE LEFT THIS SUGGESTS A LOST OPPORTUNITY BECAUSE NAFTA REVEALED A CENTER VITAL ENOUGH TO GOVERN MR GINGRICH THE SUPPOSED NIHILIST PUT THE COUNTRY ABOVE PARTISAN GAIN WHEN GEORGE MITCHELL HAD THE SAME CHANCE TO CUT CAPITALGAINS TAXES IN A WEAK ECONOMY IN 1989 HE CHOSE TO CHOP GEORGE BUSH OFF AT THE KNEES INSTEAD AND GROWTH DEMOCRATS RESISTED LABOR'S PRESSURE PENNYKASICH OFFERS MR CLINTON AN EASY CENTRIST FOLLOWUP A CHANCE TO SHAKE THE TAXANDSPEND LABEL HIS BUDGET GAVE HIM BUT HIS OPPOSITION SUGGESTS THAT MR CLINTON'S BRAVE NAFTA COALITION IS LIKE GEORGE BUSH'S RISKTAKING LEADERSHIP ON THE GULF WAR THE EXCEPTION NOT THE RULE OF HIS PRESIDENCY 9311190084 931119 LEISURE & ARTS BOOKSHELF WOMEN'S LIVES IN THEIR OWN WORDS BY MERLE RUBIN ONE OF THE FEW ENCOURAGING LEGACIES OF THE GENERATION OF ACADEMICIANS THAT HAS BROUGHT US THE BLIGHTS OF POLITICAL CORRECTNESS BALKANIZED ETHNIC AND GENDER STUDIES AND THE GENERAL EROSION OF A MEANINGFUL CORE CURRICULUM HAS BEEN A RESPECT PROFESSED IF NOT ALWAYS PRACTICED FOR DIVERSITY WHETHER OR NOT DIVERSITY PER SE IS A UNIVERSAL DESIDERATUM A MODICUM OF SHARED CULTURAL REFERENCE POINTS SEEMS HELPFUL IF A SOCIETY HOPES TO COHERE AT ALL DIVERSITY IS ALMOST ALWAYS THE HALLMARK OF A GOOD ANTHOLOGY IN THE NORTON BOOK OF WOMEN'S LIVES NORTON 826 PAGES 30 BIOGRAPHER AND CRITIC PHYLLIS ROSE AN ENGLISH PROFESSOR AT WESLEYAN UNIVERSITY HAS ASSEMBLED A REMARKABLE ARRAY OF EXCERPTS FROM MEMOIRS DIARIES AND OTHER AUTOBIOGRAPHICAL WRITINGS BY WOMEN ALONG WITH THE INEVITABLE EXCERPTS FROM SUCH CHAMPION SELFEXPLICATORS AS ANAIS NIN SIMONE DE BEAUVOIR GERTRUDE STEIN COLETTE JOAN DIDION SYLVIA PLATH AND ANNE MORROW LINDBERGH ARE UNFORGETTABLE SLICES OF FAR LESS FAMOUS LIVES EMILIE CARLES A FRENCH PEASANT WHO HAD TO OVERCOME HER FAMILY'S PREJUDICES TO BECOME A SCHOOLTEACHER AND TO MARRY A ROOTLESS AS THEY SAW IT WORKING MAN NIEN CHENG A MEMBER OF CHINA'S EDUCATED ELITE WHO SURVIVED TORTURE DURING THE CULTURAL REVOLUTION NING LAO T'AIT'AI A CHINESE BEGGAR WHO TRIED TO STOP HER HUSBAND FROM SELLING THEIR DAUGHTER AND ONNIE LEE LOGAN AN ALABAMA MIDWIFE WHO REVEALS THE SECRETS OF HER TRADE IN AN ENGAGINGLY EXPLICIT ORAL HISTORY ENTITLED MOTHERWIT CAROLINA MARIA DE JESUS A BRAZILIAN MOTHER OF THREE WITH ONLY A SECONDGRADE EDUCATION FOUND TIME TO WRITE WHILE SCAVENGING FOR FOOD IN THE SAO PAULO SHANTYTOWN WHERE SHE LIVED I CAME BACK FROM THE POST OFFICE AS SAD AS IF THEY HAD CUT OFF ONE OF MY ARMS SHE REPORTS IN HER DIARY THE READERS' DIGEST RETURNED MY NOVELS LUCKILY A BRAZILIAN JOURNALIST DISCOVERED MS DE JESUS NOT LONG AFTER THIS SAD ENTRY HER DIARY BECAME A BESTSELLER AND SHE AND HER FAMILY WERE ABLE TO MOVE TO A NICE HOUSE IN THE SUBURBS FOR JOYCE JOHNSON LEADING THE LITERARY LIFE MEANT MOVING OUT OF COMFORTABLE MIDDLECLASS SURROUNDINGS INTO THE SEEMINGLY GLAMOROUS SQUALOR OF BOHEMIA WHERE SHE UNDERWENT THE DEEPLY UNGLAMOROUS MISERY OF AN ILLEGAL ABORTION AND THE MIXED PLEASURE OF AN AFFAIR WITH JACK KEROUAC AT 23 SHE RECALLS SHE BELIEVED IN THE CURATIVE POWERS OF LOVE AS THE ENGLISH BELIEVE IN TEA OR CATHOLICS BELIEVE IN THE MIRACLE OF LOURDES MS JOHNSON'S MILD IRONY IS IN SHARP CONTRAST TO THE PASSIONATE AND CONFUSED SINCERITY OF VITA SACKVILLEWEST'S SOULBARING REMINISCENCE OF HER TORMENTED LOVE AFFAIR WITH VIOLET TREFUSIS IN HER INTRODUCTION A SOMEWHAT PREDICTABLY POSTMODERN EXERCISE IN WHICH THE EDITOR GIVES HERSELF PERMISSION TO DO WHATEVER SHE LIKES WHILE CRITICIZING HER OWN SELFINDULGENCE MS ROSE RELATES HOW SHE HAD PLANNED TO BEGIN THE ANTHOLOGY WITH THE CONFESSIONS OF A NINTHCENTURY JAPANESE CONCUBINE TURNED BUDDHIST NUN BUT THEN TO MANAGE THE MASSES OF MATERIAL LIMITED HERSELF TO THE 20TH CENTURY AFTER ALL WITH THE RESULT THAT A NUMBER OF CHOICES ARE OVEREXPOSED TRUE IT'S HARD TO IMAGINE AN ANTHOLOGY OF WOMEN'S LIVES WITHOUT VIRGINIA WOOLF VERA BRITTAIN ANNE FRANK HELEN KELLER OR SUCH RECENT ADDITIONS TO THE FEMINIST CANON AS MAYA ANGELOU AND MAXINE HONG KINGSTON BUT I WONDER IF WE COULDN'T HAVE BEEN SPARED ANOTHER CLOYING ENCOUNTER IN HAPPY VALLEY KENYA WITH THE UBIQUITOUS BERYL MARKHAM AND THE EVEN MORE WILDLY OVERRATED ISAK DINESEN MS ROSE HAS WISELY OPTED FOR THE SURPRISINGLY EFFECTIVE METHOD OF ARRANGING HER AUTHORS ALPHABETICALLY HEADNOTES TO EACH OF THE 61 AUTHORS PROVIDE HELPFUL AT TIMES ODDBALL CROSSREFERENCES READERS ARE INVITED TO COMPARE KATE MILLET'S MENTAL BREAKDOWN WITH JANET FRAME'S THEMES ARE THUS HIGHLIGHTED WITHOUT BEING HERDED INTO CATEGORIES AND WITH STORIES AS DIVERSE AS MARY MCCARTHY'S LOSS OF FAITH AND ZORA NEALE HURSTON'S ACCOUNT OF A TOE PARTY THE VOICES WE HEAR REPRESENT A FINE VARIETY OF VIEWPOINTS AND SUBJECTS A SINGLE ALBEIT FARRANGING SUBJECT PROVIDES THE FOCUS FOR ANOTHER ANTHOLOGY OF WOMEN'S WRITINGS MAIDEN VOYAGES WRITINGS OF WOMEN TRAVELERS VINTAGE 442 PAGES 14 EDITED BY MARY MORRIS IN COLLABORATION WITH LARRY O'CONNOR MS MORRIS HERSELF A TRAVEL WRITER AND NOVELIST BEGINS CHRONOLOGICALLY WITH LADY MARY WORTLEY MONTAGU WHO SHOCKED HER 18THCENTURY CONTEMPORARIES BY JOURNEYING WITHOUT MALE ESCORT AS FAR AS CONSTANTINOPLE TO JOIN HER HUSBAND THE BRITISH AMBASSADOR TO THE OTTOMAN EMPIRE SOON THEREAFTER WE MEET A SERIES OF AMAZINGLY ENTERPRISING VICTORIAN WOMEN WHO CLIMBED MOUNTAINS SAILED UP JUNGLE RIVERS COLLECTED RARE SPECIMENS OF FLORA AND FAUNA COMMENTED ON LOCAL CUSTOMS AND OCCASIONALLY DISGUISED THEMSELVES AS MEN TO BE ABLE TO GO WHERE THEY PLEASED NOT SURPRISINGLY TRAVEL HONED POLITICAL CONSCIOUSNESS IN MANY ANNA LEONOWENS WHOSE MEMOIR ULTIMATELY INSPIRED THE KING AND I PORTRAYS THE OPPRESSION OF WOMEN AND CHILDREN IN THE HAREM OF THE KING OF SIAM AND REBECCA WEST PONDERS THE MYSTERIES OF GOOD AND EVIL IN THE BOSNIAN MUSLIM TOWN OF MOSTAR HALF A CENTURY BEFORE EVIL DEFINITELY TRIUMPHED THERE TAKING WITH IT THE FAMOUSLY PICTURESQUE BRIDGE 9311190083 931119 SMALL STOCK FOCUS PROFITTAKING FOLLOWS VOTE ON NAFTA HIGHER RATES ALSO PUSH DOWN STOCKS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK PROFITTAKING ENSUED AFTER WEDNESDAY NIGHT'S PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT BY THE HOUSE OF REPRESENTATIVES PULLING SMALLCOMPANY STOCKS LOWER ALONG WITH THE REST OF THE MARKET OBSERVERS ALSO SAID HIGHER INTEREST RATES HELPED TO DEPRESS STOCKS THE TREASURY'S BENCHMARK LONG BOND FELL 7/8 POINT DRIVING ITS YIELD UP TO 624 WEEKLY JOBLESS CLAIMS ALSO DROPPED THE RUSSELL 2000 INDEX FELL 173 POINTS OR 068 TO END AT 252 MARKING ITS FOURTH STRAIGHT DOWN DAY THE BAROMETER CHARTS THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR MARKETS ACROSSTHEBOARD WEAKNESS SENT THE NASDAQ COMPOSITE INDEX 802 OR 105 LOWER TO FINISH AT 75434 RETREATING NASDAQ ISSUES OUTNUMBERED GAINERS 1779 TO 1217 NASDAQ NATIONAL MARKET VOLUME WAS 295330300 SHARES ON A PAR WITH 296745700 SHARES WEDNESDAY TOTAL VOLUME ROSE TO 372059000 SHARES FROM 359613000 SHARES WEDNESDAY WE'RE STILL IN A SELLOFF MODE THAT'S BEEN GOING ON SINCE FRIDAY SAID ROBERT PADALA SENIOR VICE PRESIDENT OF OVERTHECOUNTER TRADING AT DONALDSON LUFKIN & JENRETTE A LOT OF PEOPLE ARE JUST TAKING PROFITS THE RUSSELL 2000 INDEX HAS DROPPED 594 POINTS OR 23 SINCE FRIDAY AND THE NASDAQ COMPOSITE INDEX HAS SAGGED 2501 POINTS OR 320 SINCE THEN ACCORDING TO RICHARD SILVERMAN AN EXECUTIVE VICE PRESIDENT AND THE HEAD TRADER AT REICH & CO THE MAIN IMPETUS BEHIND YESTERDAY'S SELLING IS THE PERCEPTION THAT THE ECONOMY IS BOOMING IT LOOKS LIKE THE ECONOMY'S IN GOOD SHAPE AND PEOPLE ARE A LITTLE NERVOUS THAT RATES COULD TICK UP AND INFLATION COULD GO UP HE SAID HE ADDED THAT THE DOW JONES INDUSTRIAL AVERAGE'S INABILITY TO STAY ABOVE 3700 HURT SMALLER ISSUES AS WELL THE INDUSTRIALS FELL 1901 POINTS OR 051 TO END AT 368534 POOR DAY FOR INSURANCE ISSUES BUT MR SILVERMAN SAID SMALLER STOCKS WERE ROCKED SELECTIVELY INSURANCE ISSUES FOR INSTANCE PERFORMED POORLY ALFA CORP MONTGOMERY ALA DROPPED 1/2 TO 11 3/4 SMALLER COMPONENTS OF THE NASDAQ INSURANCE INDEX FELL IN TANDEM WITH THE LARGER MEMBERS OF THE GROUP OXFORD HEALTH PLANS INC DARIEN CONN DIPPED 1 1/4 TO 39 1/2 AND TAKECARE INC CONCORD CALIF LOST 1 1/8 TO 45 3/8 BUT SOME CLOSEDEND MEXICAN FUNDS WERE BOOSTED BY THE NAFTA VICTORY LAST NIGHT THE MEXICO FUND INC EDGED UP 1 TO 29 3/8 THE MEXICO EQUITY & INCOME FUND INC GAINED 1 TO 20 7/8 AND THE EMERGING MEXICO FUND ADDED 5/8 TO 22 1/8 ALL ARE TRADED ON THE BIG BOARD INDEPENDENCE BANCORP INC BASED IN PERKASIE PA ENDED UP 2 1/2 AT 33 1/2 THE COMPANY SAID IT IS DISCUSSING A POSSIBLE ACQUISITION BY A THIRD PARTY THERE WAS MUCH SPECULATION THAT THE COMPANY IS THE TARGET OF THREE REGIONAL BANK HOLDING CONCERNS INTERESTED IN EXPANDING THEIR PRESENCE IN EASTERN PENNSYLVANIA THE TAKEOVER RUMORS INCLUDE MELLON BANK CORP PNC BANK CORP AND FIRST FIDELITY BANCORP AS POSSIBLE SUITORS ALL ARE TRADED ON THE NEW YORK STOCK EXCHANGE ASTORIA FINANCIAL CORP SURGED 3 5/8 TO 28 5/8 THE NEWLY FORMED HOLDING COMPANY FOR ASTORIA FEDERAL SAVINGS & LOAN ASSOCIATION SAID IT SOLD 13225000 COMMON SHARES AT 25 EACH BUT MOST INTERESTRATE SENSITIVE ISSUES LOST GROUND BANK OF NEW HAMPSHIRE CORP MANCHESTER NH GAVE UP 1 TO 17 SUMMIT BANCORP CHATHAM NJ RELINQUISHED 5/8 TO 20 1/4 AND COMMUNITY FIRST BANKSHARES DIPPED 1/2 TO 13 3/4 ELSEWHERE CHOLESTECH CORP HAYWARD CALIF ADDED 1 TO 6 3/4 THE COMPANY SAID IT RECEIVED CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET TWO NEW DIAGNOSTIC TEST PANELS FOR ITS LDX SYSTEM WHICH MEASURES CHOLESTEROL ALSO KEMPER SECURITIES CORP ANALYST JEAN ANNE MIRE RAISED HER INVESTMENT RATING TO SPECULATIVERISK STRONG BUY FROM LONGTERM BUY AFTER TRADING CLOSED TALBOTS PRICED 11 MILLION SHARES AT 19 1/2 THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE COMPANY HAD ORIGINALLY EXPECTED THE SHARES BETWEEN 15 AND 17 AND THEN RAISED THE RANGE TO BE BETWEEN 18 AND 20 TALBOTS IS A SPECIALTY RETAILER AND CATALOG SELLER OF WOMEN'S APPAREL SHOES AND ACCESSORIES 9311190082 931119 NORMAN HIGGINS CRUISES FOR WOMEN ON THE ROYAL ODYSSEY GENTLEMEN HOSTS' ARE ABOARD FOR DANCING AND DINING WITH UNATTACHED LADIES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL ABOARD THE ROYAL ODYSSEY IN THE MEDITERRANEAN EACH NIGHT AMID THE SOFT STRAINS OF A FOURPIECE BAND NORMAN HIGGINS GLIDES ACROSS THE DANCE FLOOR OF THE PENTHOUSE LOUNGE AND WARMS THE HEARTS OF WOMEN TRAVELERS WITH HIS SWEET MERENGUE A CRUISE IS A DREAM MR HIGGINS SAYS AND WE'RE PART OF THAT DREAM HE IS INDEED PART OF A MAKEBELIEVE WORLD WHERE PASSENGERS LEAVE THEIR WORRIES ASHORE AND COME TOGETHER AMID THE ELIXIRS OF FINE DINING ROMANTIC EUROPEAN PORTS AND ROUNDTHECLOCK PAMPERING BUT AS A GENTLEMAN HOST FOR ROYAL CRUISE LINE MR HIGGINS ALSO HAS A SPECIAL NICHE IN THIS NAUTICAL ESCAPE HOSTS SERVE AS DANCE PARTNERS FOR SINGLE WOMEN PASSENGERS WHO ARE TYPICALLY AGE 50 OR OLDER WHILE SEVERAL HUNDRED GENTLEMEN HAVE TAKEN TOURS OF DUTY ON ROYAL CRUISE LINE'S THREE SHIPS ABOUT SIX MEN SERVE ON BOARD AT A TIME THE BALDING 5FOOT3 MR HIGGINS HAS STOOD HEAD AND SHOULDERS ABOVE THE REST KNOWN AS STORMIN' NORMAN THE 71YEAROLD MR HIGGINS IS BELOVED FOR HIS ENGLISH ACCENT SENSUOUS SAMBA AND DESIRE TO PLEASE ON ONE THEME NIGHT SEVERAL LADIES TURNED HIM INTO A PIRATE ADORNING HIM WITH AN EARRING THREECORNER HAT AND EYELINER MUSTACHE THE OTHER HOSTS WOULDN'T SIT STILL BUT HE DID RECALLS PASSENGER BILLIE JO LISTER FROM GARDEN GROVE CALIF HE'S NO ADONIS BUT HE IS A SWEETHEART MR HIGGINS A RETIRED DANCE INSTRUCTOR TOOK TO SEA SIX YEARS AGO AFTER THE DEATH OF HIS WIFE EDNA WHOSE 22KARATGOLD WEDDING BAND HE WEARS ON HIS LEFT PINKIE WHEREAS MOST HOSTS SAIL FOR TWO OR THREE MONTHS MR HIGGINS IS ON ROYAL CRUISE LINE VESSELS FOR NINE OR 10 MONTHS A YEAR HE HAS MADE 130 CRUISES IN FIVE YEARS CELEBRATES HOLIDAYS AND BIRTHDAYS ABOARD SHIP AND CONSIDERS THE CREW HIS FAMILY THE JOB PAYS NO SALARY BUT IT INCLUDES ROOM BOARD AND EXPENSES CRUISING FILLS THE GAPS SAYS MR HIGGINS A LIFELONG RESIDENT OF A SMALL TOWN IN NORTHERN ENGLAND WHEN I RETURN HOME I COME BACK TO EARTH WITH A BANG MR HIGGINS'S ENDLESS VOYAGE IS A FITTING TWIST TO A CRUISE PROGRAM DESIGNED TO BENEFIT WOMEN NOT MEN THE SAFETY AND COMFORT OF CRUISE LINES HAVE ALWAYS MADE THEM POPULAR WITH WIDOWS AND OTHER UNATTACHED WOMEN ROYAL CRUISE LINE BEGAN PROVIDING ONBOARD ESCORTS 11 YEARS AGO SO THAT THESE PASSENGERS HAD DANCE PARTNERS DINNER COMPANY AND SEAFARING BUT PLATONIC COMPANIONSHIP WHILE INITIALLY DERIDED AS GERIATRIC GIGOLOS THE HOSTS HAVE NOW BECOME A POPULAR IF LITTLE ADVERTISED FEATURE OF AT LEAST A HALF DOZEN MAJOR CRUISE LINES INCLUDING THE GOLDPLATED QUEEN ELIZABETH II IN MOST CASES HOSTS CANNOT BE MARRIED AND ARE BETWEEN 50 AND 80 YEARS OF AGE HANKY PANKY WITH PASSENGERS ON BOARD IS FORBIDDEN ALTHOUGH SOME HOSTS HAVE MARRIED WOMEN THEY MET AT SEA MEN WITH TWO LEFT FEET NEED NOT APPLY OUR BIGGEST PROBLEM IS THAT A LOT OF HOSTS AREN'T MORE SKILLED IN HOW YOU LEAD A LADY SAYS LAURETTA BLAKE PRESIDENT OF WORKING VACATION A SANTA CLARA CALIF AGENCY THAT PLACES HOSTS NEVERTHELESS SHE CALLS THESE MEN KNIGHTS OF THE SEA THEY CLEARLY PLAY AN IMPORTANT ROLE FOR SOME WOMEN PARTICULARLY THOSE WHO HAVE BEEN MARRIED FOR YEARS AND NOW FIND THEMSELVES ALONE MOST ACTIVITIES IN LIFE ARE FOR COUPLES BUT WHERE CAN YOU GO TO FEEL LIKE YOU'RE IN A COUPLED WORLD' ASKS DOROTHY WEHRHEIM SITTING IN A COMFORTABLE LOUNGE ABOARD THE ROYAL ODYSSEY ON A 12DAY MEDITERRANEAN VOYAGE THE TRIM 68YEAROLD SOUTHERN CALIFORNIAN HAS BEEN RUNNING A GRIEF SUPPORT GROUP AT HER CHURCH SINCE HER HUSBAND OF 47 YEARS DIED THREE YEARS AGO SAFETY CONCERNS KEEP HER FROM GOING OUT MUCH BACK HOME SO MRS WEHRHEIM DECIDED TO CRUISE ALONE ON THE ROYAL ODYSSEY IN PART FOR THE DANCING PROMENADING BENEATH THE MUTED LIGHTS OF THE PENTHOUSE LOUNGE A GENTLEMAN HOST LEADING RECONNECTS HER TO A LIFE SHE NOW MISSES I'M PART OF A COUPLED WORLD IF ONLY FOR A FEW MINUTES SHE SAYS MANY PASSENGERS FIND OUT ABOUT THE HOST PROGRAM THROUGH TRAVEL AGENTS AND THE SERVICE SEEMS TO HAVE HELPED DRUM UP CUSTOMERS FOR THE SAN FRANCISCOBASED ROYAL CRUISE LINE THE COMPANY IS A UNIT OF KLOSTER CRUISE LTD CORAL CABLES FLA WHICH IS OWNED BY VARD AS OF OSLO ABOUT A QUARTER OF ALL CRUISE LINE PASSENGERS ARE SINGLE ACCORDING TO INDUSTRY DATA ON BOARD THE ROYAL ODYSSEY WHICH USUALLY SAILS NEARLY FILLED TO ITS 749PASSENGER CAPACITY SINGLE WOMEN ALONE MAKE UP A QUARTER OF THOSE ABOARD THE AVERAGE PASSENGER AGE IS 62 OF COURSE THE SHIP HAS OTHER ATTRACTIONSSUCH AS A SHOPPING ARCADE CASINO NIGHTLY STAGE SHOWS AND FRIENDLY GREEK STEWARDS THAT HELP DRAW TRAVELERS THE 12DAY MEDITERRANEAN CRUISE STARTS AT 3400 ROYAL CRUISE LINE SAYS IT SELECTS HOSTS WHO HAVE BEEN RECOMMENDED BY A TRAVEL AGENT OR ANOTHER ESCORT AND WHILE THE JOB HAS OBVIOUS BENEFITS FREE MEALS DRINKS AND LAUNDRY SERVICE PLUS A CHANCE TO SEE MUCH OF THE WORLD IT CAN BE WEARING YOU'RE ON STAGE CONSTANTLY SAYS KOY WOODMAN 72 A RETIRED SALESMAN WHO HAS BEEN A HOST SINCE 1985 AFTER SIX WEEKS AT SEA WHEN I GET HOME I'M SICK AND TIRED OF BEING NICE TO PEOPLE MR HIGGINS SEEMS TO RELISH EVERY MINUTE ON THE ROYAL ODYSSEY OVER A DINNER OF BRAISED LAMB HE CHARMS THREE LADIES FROM GEORGIA WITH STORIES OF WORKING IN BRITISH COAL MINES DRESSED IN A NAVY DOUBLEBREASTED SUIT WHITE PANTS AND WHITE SHOES HE STROLLS THROUGH THE NINEDECK 676FOOT VESSEL HE SLAPS HANDS WITH STEWARDS HUGS PASSENGERS AND DROPS BY THE SHOPPING ARCADE WHERE A SALES CLERK SPLASHES HIM WITH AN ITALIAN FRAGRANCE CALLED ONE MAN SHOW HE SAYS HE HAS TURNED DOWN THREE MARRIAGE PROPOSALS FROM AMERICAN PASSENGERS I THOUGHT THEY WERE KIDDING BUT THEN THEY SENT ME LETTERS HE SAYS A BRITISH WOMAN WOULD NEVER DO THAT IN FACT MR HIGGINS'S GREATEST COMFORT IS SIMPLY TO DANCE WITH STRANGERS AT SEA AND HE TAKES IT SERIOUSLY IN THE PENTHOUSE LOUNGE WHERE THE SIX HOSTS ROTATE DANCING TONIGHT WITH ABOUT 20 WOMEN MR HIGGINS BERATES THE OTHER ESCORTS' TEPID TANGO NO PASSION NO STACCATO HE CRIES MY TANGO HAS FIRE BUT DANCING ON THE ROYAL ODYSSEY IS NOT ABOUT ART IT IS ABOUT FELLOWSHIP AND LOST CONNECTIONS NOBODY WANTS TO DANCE WITH A PERSON MY AGE SAYS MILLIE MOORE 69 OF CLAREMONT CALIF I DANCE AROUND THE HOUSE WITH MY DOG BUT THE DOG DOESN'T LEAD VERY WELL TONIGHT HOWEVER MS MOORE WHO IS TWICE WIDOWED HAS SKATED ACROSS THE DANCE FLOOR WITH HER FAVORITE PARTNER MR HIGGINS HE'S SUCH A GENTLEMAN AND HE'S SO CUTE YOU JUST WANT TO HUG HIM SHE SAYS WHEN THE BAND CLOSES WITH GOOD NIGHT IRENE IT IS ALMOST 1 AM AND MR HIGGINS HEADS TO HIS ROOM YESTERDAY HE WAS IN CORSICA AND TODAY HE WILL BE IN ROME THIS ISN'T THE REAL WORLD HE SAYS BUT IT'S THE ONE I ENJOY BEING IN BEFORE SAYING GOOD NIGHT MR HIGGINS MOMENTARILY REVERTS TO DANCE INSTRUCTOR FOR A VISITOR'S BENEFIT HE STRAIGHTENS HIS BACK HOLDS AN IMAGINARY PARTNER IN HIS ARMS AND WALTZES ALONE DOWN A SILENT CORRIDOR 9311190081 931119 BUSINESS BRIEFS CARGILL INC'S NORTH STAR STEEL CO UNIT HAS MADE A PRELIMINARY CHOICE OF KINGMAN ARIZ AS THE SITE FOR A 140 MILLION MINIMILL THAT WOULD RECYCLE OLD AUTOMOBILES AND APPLIANCES INTO CONSTRUCTIONGRADE STEEL FOURTH FINANCIAL CORP AGREED TO ACQUIRE FIRST DODGE CITY BANCSHARES INC THE PARENT COMPANY OF TWO BANKS IN KANSAS AND OKLAHOMA FOR COMMON STOCK FRANCE TELECOM GROUP PLANS TO TAKE A MINORITY STAKE IN KEYSTONE COMMUNICATIONS CORP A SATELLITE TRANSMISSION SERVICES COMPANY BASED IN SALT LAKE CITY HOLLYWOOD PARK INC'S BOARD APPROVED AN AGREEMENT IN PRINCIPLE TO ACQUIRE THE WOODLANDS A KANSAS CITY KAN HORSERACING AND GREYHOUNDRACING FACILITY FOR 20 MILLION IN CASH AND STOCK MERRY LAND & INVESTMENT CO CLOSED THE PURCHASE OF AN APARTMENT COMMUNITY IN ORLANDO FLA FOR 105 MILLION IN CASH 9311190080 931119 CLINTON'S WINNING COALITION BY VIN WEBER WITH THE PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT PRESIDENT CLINTON STANDS AT A CROSSROADS IN FIGHTING FOR NAFTA HE BUCKED THE INTENSE OPPOSITION OF ORGANIZED LABOR AND THE LIBERAL ESTABLISHMENT OF HIS PARTY AND SUCCEEDED IN PASSING HIS FIRST NOTABLE NEW DEMOCRAT INITIATIVE IT WAS A MAJOR VICTORY AND A MAJOR SHIFT IN DIRECTION FOR A PRESIDENT WHO HAD ALL BUT ABANDONED THE NEW DEMOCRAT AGENDA HE CAMPAIGNED ON A YEAR AGO NOW MR CLINTON MUST MAKE A CRUCIAL DECISION WORK TO SUSTAIN THE CENTRIST POLITICAL COALITION THAT CAME TOGETHER TO PASS NAFTA OR MOVE BACK TO THE LEFT AND SPEND THE REST OF HIS PRESIDENCY MAKING UP FOR DOING THE RIGHT THING ON NAFTA HOW HE CHOOSES WILL HAVE TREMENDOUS IMPLICATIONS FOR THE FUTURE OF HIS ADMINISTRATION HIS PARTY AND THE COUNTRY THE LIBERAL WING OF THE DEMOCRATIC PARTY IS ALREADY ON THE OFFENSIVE TO REGAIN ITS HEGEMONY IN THE CLINTON WHITE HOUSE ATTACKING THE COALITION THAT PASSED NAFTA AS AN UNSUSTAINABLE ANOMALY MANY OF THE PRESIDENT'S LIBERAL ADVISERS ARE URGING HIM TO PART WITH THE COALITION OF REPUBLICANS AND CENTRIST DEMOCRATS THAT DELIVERED THE VOTE ON NAFTA AND MOVE TO HEAL THE WOUNDS OF HIS PARTY'S LEFT WING IF THE PRESIDENT WANTS TO GOVERN AS A NEW DEMOCRAT HE SHOULD RESIST THIS ADVICE THE NAFTA COALITION IS NOT AN ABERRATION THIS ALLIANCE IS INDEED SUSTAINABLE AND REPRESENTS A POTENTIALLY POWERFUL CENTRIST POLITICAL FORCE THE PRESIDENT CAN TAP INTO THIS FORCE AND PRODUCE REAL CHANGE FOR AMERICA IN THE COMING THREE YEARS THE DEMOCRATIC PARTY'S LEFT WING ARGUES THAT MR CLINTON WOULD BE FOOLISH TO CAST HIS LOT WITH THE NAFTA COALITION THAT WHILE REPUBLICANS SUPPORTED MR CLINTON ON NAFTA THEY WILL NOT HELP HIM ON OTHER ISSUES SUCH AS HEALTH CARE AND THE ECONOMY THIS IS SIMPLY NOT THE CASE IF ANYTHING THE NAFTA VOTE PROVES THAT WHEN THE PRESIDENT CHAMPIONS AN APPROACH TO GOVERNMENT THAT FAVORS FREE TRADE AND FREE ENTERPRISE A MAJORITY OF CONGRESSIONAL REPUBLICANS WILL SUPPORT HIM DURING THE INTERNAL DEBATE OVER NAFTA SOME HOUSE REPUBLICANS DID ARGUE THAT THE GOP SHOULD ABANDON NAFTA EVEN IF THE PARTY AGREED WITH THE PRINCIPLES OF THE TREATY SO AS TO DENY MR CLINTON THE BIG WIN THAT WOULD SALVAGE HIS WEAKENED PRESIDENCY BUT WHEN IT CAME TIME TO VOTE THIS ARGUMENT FOUND LITTLE CURRENCY REPUBLICANS PUT PRINCIPLE OVER POLITICS AND VOTED FOR NAFTA BY A MARGIN OF 13243 IF THE PRESIDENT GIVES THEM A REASON TO THEY'LL DO IT AGAIN THERE ARE SEVERAL REASONS TO BELIEVE THIS IS SO FIRST REPUBLICANS DON'T WANT TO JUST OPPOSE THEY WANT TO GOVERN THE GOP HAS BEEN IN THE MINORITY IN THE HOUSE SINCE 1954 IF REPUBLICANS AGREE WITH THE AGENDA AND ARE MADE REAL PARTNERS IN PURSUING IT THEY WILL JUMP AT THE CHANCE TO BE PART OF A GOVERNING MAJORITY SECOND THE NEXT REPUBLICAN LEADER NEWT GINGRICH IS PREPARED TO GO THIS ROUTE JUST AS MR CLINTON STANDS AT A CROSSROADS TODAY MR GINGRICH WAS AT A CROSSROADS SEVERAL MONTHS AGO OVER NAFTA MANY OF HIS COLLEAGUES ADVISED HIM THAT GOP MEMBERS MIGHT REACT NEGATIVELY TO THE IDEA OF THEIR NEXT LEADER RESCUING AN INCUMBENT DEMOCRATIC PRESIDENT BUT MR GINGRICH OPTED FOR STATESMANSHIP AND DELIVERED THE REPUBLICAN VOTE HE IS READY TODAY TO LEAD THE GOP INTO A PARTNERSHIP FOR CHANGE WITH MR CLINTON PROVIDED IT IS REAL CHANGE AND A REAL PARTNERSHIP MR CLINTON SHOULD NOT TURN AWAY FROM THIS OPPORTUNITY NOW RATHER HE SHOULD EXAMINE OTHER ISSUES ON WHICH THE NAFTA COALITION CAN UNITE TO PASS REAL REFORMS FOR AMERICA SOME POSSIBILITIES INCLUDE THE ECONOMY THE REASON REPUBLICANS HAVE THUS FAR OPPOSED MR CLINTON ON HIS DOMESTIC AGENDA WHILE SUPPORTING HIS POSITION ON FOREIGN TRADE IS THAT MR CLINTON HAS PURSUED DIVERGENT POLICIES IN THESE TWO AREAS IN MAKING THE CASE FOR NAFTA MR CLINTON FOUND HIMSELF CHAMPIONING TRADITIONALLY CONSERVATIVE ECONOMIC PRINCIPLES REMOVING GOVERNMENT BARRIERS TO FREE TRADE AND FREE MARKETS CREATING INCENTIVES FOR PRODUCTIVITY AND INVESTMENT CUTTING TAXES AND REMOVING BARRIERS TO ENTREPRENEURSHIP THESE ARE CORE PRINCIPLES THAT REPUBLICANS WILL SUPPORT ON OTHER ISSUES AS WELL BUT WHILE MR CLINTON SUPPORTED THESE POLICIES OF LOWERING TAXES AND REDUCING GOVERNMENT INTERFERENCE IN INTERNATIONAL TRADE HE HAS THUS FAR SUPPORTED HIGHER TAXES AND BIG GOVERNMENT AT HOME IF MR CLINTON APPLIES THE PRINCIPLES HE CHAMPIONED IN THE NAFTA FIGHT TO HIS DOMESTIC ECONOMIC AGENDA THE NAFTA COALITION WILL HELP HIM PASS A PROGROWTH ECONOMIC AGENDA IN 1994 SPECIFICALLY JUST AS THE PRESIDENT CHAMPIONED LOWERING TAXES ON BUSINESSES TRADING WITH MEXICO TARIFFS ARE TAXES HE SHOULD PURSUE A POLICY OF LOWER TAXES ON ALL AMERICAN BUSINESSES THE ONE AREA WHERE HE COULD ACCOMPLISH THIS AND WHERE THE NAFTA COALITION WOULD EAGERLY HELP HIM IS IN CUTTING THE CAPITALGAINS TAX A CAPITALGAINS TAX CUT IS THE LOGICAL EXTENSION OF THE TRADE POLICY MR CLINTON HAS PURSUED WITH NAFTA MOST OF OUR MAJOR COMPETITORS IN THE NEW GLOBAL ECONOMY INCLUDING JAPAN GERMANY AND MEXICO HAVE A CAPITALGAINS TAX RATE OF NEAR ZERO HAVING JUST HAD THE VISION TO COMMIT US TO COMPETE MORE FREELY IN THE GLOBAL MARKETPLACE MR CLINTON MUST ALSO REALIZE THAT AMERICA CANNOT SUCCESSFULLY COMPETE WITH COUNTRIES THAT HAVE A ZERO TAX ON CAPITAL FORMATION WHILE WE TAX CAPITAL AT 28 THERE IS A PRECEDENT FOR MR CLINTON TO CHAMPION A CAPITALGAINS TAX REDUCTION IN 1978 A DEMOCRATIC CONGRESS PASSED AND A DEMOCRATIC PRESIDENT SIGNED INTO LAW THE GROUNDBREAKING STEIGER CAPITALGAINS TAX CUT MR CLINTON SHOULD DO IT AGAIN WHILE GEORGE BUSH WAS UNABLE TO GET SUCH A CUT THROUGH CONGRESS IF HE HARNESSES THE NAFTA COALITION MR CLINTON COULD HEALTH CARE WHEN HE PRESENTED HIS HEALTH CARE PROPOSAL TO CONGRESS THE PRESIDENT SAID THAT EXCEPT FOR THE PRINCIPLE OF UNIVERSAL COVERAGE EVERYTHING IS ON THE TABLE THIS ENSURED THAT THE FINAL PRODUCT OF NEXT YEAR'S HEALTH CARE DEBATE IN CONGRESS WILL BE A COMPROMISE PLAN MR CLINTON THUS FACES A CHOICE HE CAN COMPROMISE TO EITHER THE RIGHT OR THE LEFT THE PRESIDENT'S LIBERAL ADVISERS WANT HIM TO COMPROMISE LEFT MR CLINTON'S POLLSTER STAN GREENBERG ARGUES THAT THERE IS NO NAFTA BLOCK OF REPUBLICANS FOR HEALTH CARE AND IS ADVISING THE PRESIDENT TO FIND COMMON GROUND WITH LIBERALS IN HIS PARTY WHO ADVOCATE A CANADIANSTYLE SINGLEPAYER PROGRAM THIS IS BAD ADVICE IF THE PRESIDENT CHOOSES TO FOLLOW A NEW DEMOCRAT PATH HOWEVER HE CAN TAP INTO THE NAFTA COALITION TO PASS LEGISLATION THAT PROVIDES COVERAGE FOR UNINSURED AMERICANS WHILE STILL USING THE POWER OF THE MARKET TO PROTECT QUALITY AND CHOICE WELFARE REFORM DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON PROMISED THAT HIS ADMINISTRATION WOULD PURSUE REAL WELFARE REFORM AND STATED HIS SUPPORT FOR A TWOYEAR TIME LIMIT ON WELFARE RECIPIENTS TO HIS CREDIT THE PRESIDENT RECENTLY APPROVED A TRIAL REFORM PROGRAM IN WISCONSIN PROPOSED BY REPUBLICAN GOV TOMMY THOMPSON THAT WOULD IMPOSE SUCH A LIMIT IF MR CLINTON IS PREPARED TO WORK TOWARD REAL REFORMS OF THE WELFARE SYSTEM ON THE NATIONAL LEVEL THE NAFTA COALITION COULD BE HARNESSED TO SUPPORT AND PASS SUCH LEGISLATION IN CONGRESS FURTHER TRADE LIBERALIZATION MR CLINTON SHOULD CLAIM THAT THE SUPPORT OF THE NAFTA COALITION IS A MANDATE FOR HIM TO PURSUE THE NEXT STEP IN BUILDING A HEMISPHERIC FREE TRADE ZONENEGOTIATIONS TO INCORPORATE CHILE ARGENTINA AND VENEZUELA INTO THE NAFTA TRADING BLOC THE NAFTA COALITION COULD PROVIDE HIM WITH THE VOTES HE NEEDS TO GET FAST TRACK AUTHORIZATION FROM CONGRESS FOR SUCH AN EFFORT AND TO PASS A FINAL FREE TRADE AGREEMENT BEFORE THE END OF HIS FIRST TERM ALL THIS IS NOT ONLY WISE POLICY IT IS SMART POLITICS AS THE DEMOCRATS' COLLAPSE IN THE 1993 ELECTIONS SHOWS THE AMERICAN PEOPLE ARE DISSATISFIED WITH THE LEFTWARD DIRECTION THE CLINTON ADMINISTRATION HAS TAKEN DURING ITS FIRST YEAR CLEARLY VOTERS ARE STILL ANGRY AND WANT CHANGE BUT THE CHANGE THEY ARE LOOKING FOR STILL HAS NOT OCCURRED IF THE PRESIDENT CHOOSES TO RETURN TO HIS NEW DEMOCRAT ROOTS HE CAN DELIVER THE KIND OF REAL CHANGE AMERICANS ARE LOOKING FOR AND HE WILL REAP THE POLITICAL BENEFITS THIS STRATEGY IS NOT WITHOUT RISK FOR THE PRESIDENT THERE IS REAL DANGER THAT WERE HE TO FOLLOW THROUGH WITH SUCH A NEW DEMOCRAT AGENDA FOR THE NEXT THREE YEARS IT WOULD LEAD TO AN OLD DEMOCRAT PRIMARY CHALLENGE IN 1996 BUT THE PRESIDENT SHOULD REALIZE THAT THE OPPORTUNITY HERE IS NOT JUST TACTICAL IT IS HISTORIC THE CHANCE TO CHANGE THE DIRECTION OF THE COUNTRY TO BUILD A NEW BIPARTISAN POLITICAL COALITION DOES NOT COME ALONG EVERY DAY IF MR CLINTON DOES CHOOSE THIS COURSE IT WILL REQUIRE SKILL COURAGE AND FORTITUDE IT WILL INFURIATE MANY TRADITIONAL CONSTITUENCIES AND SPECIAL INTERESTS IN HIS PARTY THAT WANT TO RESIST CHANGE BUT IT COULD ALSO MEAN THE DIFFERENCE BETWEEN BEING REMEMBERED AS ANOTHER JIMMY CARTER OR EARNING A PLACE IN HISTORY AS A MODERN JOHN F KENNEDY MR WEBER A FORMER REPUBLICAN CONGRESSMAN FROM MINNESOTA IS PRESIDENT OF EMPOWER AMERICA THE CONSERVATIVE ADVOCACY GROUP IN WASHINGTON 9311190079 931119 BUILDER BANKS ON SUPERHIGHWAY IN CHINA HOPEWELL HOLDINGS RACES TO COMPLETE TOLL ROAD BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG HOPEWELL HOLDINGS LTD IS RACING TO FINISH WORK ON THE SHENZHENCANTONZHUHAI SUPERHIGHWAY THE FIRST PHASE OF THE SIXLANE 75MILE TOLL ROAD LINKING CANTON AND HONG KONG IS SET TO OPEN BY THE END OF THE YEAR WE'RE DOWN TO THE WHITE LINES AND BLACK TOP SAYS HOPEWELL EXECUTIVE DIRECTOR STEWART ELLIOTT IF HOPEWELL AND ITS CHINESE PARTNER DO FINISH BY YEAR'S END SOME ANALYSTS HAVE THEIR DOUBTS THE HONG KONG COMPANY STANDS TO EARN A LARGE SUM IN BONUS INCOME FOR BEATING THE OFFICIAL COMPLETION DATE OF NEXT JUNE AND RECURRENT INCOME FROM THE HIGHWAY AND PROPERTY DEVELOPMENTS CLUSTERED AROUND THE ROAD'S 13 INTERCHANGES WILL KEEP HOPEWELL HUMMING FOR YEARS TO COME HOPEWELL MANAGING DIRECTOR GORDON WU'S VISIONS ARE TAKING SHAPE ALL OVER ASIA TRANSFORMING THE COMPANY FROM A SECONDSTRING PROPERTY DEVELOPER INTO A HIGHPROFILE INFRASTRUCTURE COMPANY IN ADDITION TO THE CHINA TOLL ROAD HOPEWELL IS NOW IN THE MIDST OF SPINNING OFF A COMPANY THAT WILL DEVELOP POWER STATIONS IN CHINA THE PHILIPPINES AND ELSEWHERE IN ASIA AND THE COMPANY HAS A SECOND TOLL ROAD UNDER WAY IN BANGKOK THAILAND ANALYSTS SAY HOPEWELL'S PROFIT FOR THE YEAR ENDING JUNE 31 1994 COULD DOUBLE FROM LAST YEAR'S 203 BILLION HONG KONG DOLLARS US2628 MILLION THANKS TO BONUS INCOME FROM THE ROAD THE SPINOFF OF THE POWERPLANT COMPANY AND HOPEWELL'S USUAL PROPERTY SALES THESE ANALYSTS ALSO SAY A BIGGER INCOME BOOST WILL COME IN 1995 AND 1996 WHEN CASH FLOW FROM THE HIGHWAY AND POWER STATIONS BEGINS POURING IN THAT'S QUITE A FEAT FOR A COMPANY THAT HAS ITS ROOTS IN A TAXI SERVICE THAT MR WU'S FATHER SET UP IN THE EARLY 1920S THE FAMILY BUSINESS TURNED TO CONSTRUCTION WHEN THE YOUNGER MR WU RETURNED FROM PRINCETON UNIVERSITY WITH A DEGREE IN CIVIL ENGINEERING IN 1958 MR WU COFOUNDED HOPEWELL CONSTRUCTION CO WITH HIS FATHER IN 1963 BUT THE COMPANY DIDN'T REALLY TAKE OFF UNTIL THE EARLY 1970S WHEN IT BEGAN USING THE SLIPFORM BUILDING SYSTEM THIS METHOD WHEREBY CONCRETE IS POURED INTO FORMS THAT ARE JACKED PROGRESSIVELY HIGHER AS THE CONCRETE HARDENS BELOW ALLOWED HOPEWELL TO SPEED CONSTRUCTION OF ITS BUILDINGS TO AS LITTLE AS THREE DAYS A FLOOR FROM 10 DAYS THAT IN TURN LET HOPEWELL RECYCLE ITS CAPITAL FASTER HOPEWELL WAS THE FIRST COMPANY IN HONG KONG TO USE MECHANIZED FORMWORK SYSTEMS SAYS MR ELLIOTT WHO BROUGHT THE TECHNOLOGY TO HOPEWELL FROM AUSTRALIA THE SYSTEM WAS USED FOR NEARLY ALL OF HOPEWELL'S BUILDINGS INCLUDING ITS HOPEWELL CENTER HEADQUARTERS A DISTINCTIVE CYLINDER IN HONG KONG'S WANCHAI DISTRICT THE CHINA RESOURCES BUILDING ALSO IN WANCHAI FOLLOWED ALONG WITH THE CHINA HOTEL IN CANTON AND THE KOWLOON PANDA HOTEL IN HONG KONG'S TSUEN WAN DISTRICT THE TECHNOLOGY WAS ALSO APPLIED TO SMOKESTACKS POWERPLANT COOLING TOWERS AND SUPPORTS FOR BRIDGES AND ELEVATED ROADS IN 1984 WHILE BUILDING THE CHINA HOTEL IN CANTON MR WU DISCOVERED THAT HIS PROJECT WAS USING 2 OF THE CITY'S ELECTRICITY SEEING AN OPPORTUNITY HE PROPOSED BUILDING THE 700MEGAWATT SHAJIAO B POWER STATION ON THE PEARL RIVER SOUTH OF THE CITY THE LEAP WAS A NATURAL ONE FOR HOPEWELL THE COMPANY HAD ALREADY POURED THE CONCRETE FOR SEVERAL POWER STATIONS AROUND THE REGION AND REALIZED THAT SITE PREPARATION WAS THE TRICKIEST PART OF COORDINATING SUCH PROJECTS THE GUTS OF THE POWER PLANTS THE TURBINES AND GENERATORS WERE SIMPLY BOUGHT ON A TURNKEY BASIS FROM THE MANUFACTURERS WHO GUARANTEED INSTALLATION OF THE EQUIPMENT AT A FIXED TIME AND FIXED COST MR WU AGREED TO BUILD SHAJIAO B IF SHENZHEN'S MUNICIPAL GOVERNMENT WOULD GUARANTEE TO SUPPLY FUEL FOR THE PLANT AND BUY A MINIMUM AMOUNT OF ELECTRICITY FROM IT FOR 10 YEARS AFTER WHICH OWNERSHIP WOULD BE TRANSFERRED TO CHINA THE CHINESE SIDE READILY AGREED THE BUILDOPERATETRANSFER AGREEMENT GIVES HOPEWELL AN OVERALL RETURN ON ITS INVESTMENT OF ABOUT 18 WITH SUCH PREDICTABLE CASH FLOW MR WU HAD LITTLE TROUBLE ENTICING BANKS TO BACK THE PROJECT THE POWER PLANT WAS COMPLETED IN 1987 11 MONTHS AHEAD OF SCHEDULE SOON AFTER GOVERNMENTS FROM PAKISTAN TO INDONESIA WERE CALLING MR WU TO ASK HIM TO DO THE SAME FOR THEM WITH LIMITED RESOURCES HOWEVER HE HAS CHOSEN HIS PROJECTS WITH CARE HOPEWELL IS NOW BUILDING ITS THIRD POWER STATION IN THE PHILIPPINES AND IS BUILDING A SISTER STATION TO THE SHAJIAO B POWER PLANT IN GUANGDONG ALL OF THESE PROJECTS ARE CURRENTLY BEING GROUPED UNDER A NEW COMPANY CONSOLIDATED ELECTRIC POWER ASIA LTD THAT WILL BE LISTED IN HONG KONG WITHIN THE NEXT FEW WEEKS HOPEWELL WILL RETAIN CONTROL OF CEPA AND THE BULK OF PROCEEDS FROM THE SALE OF CEPA SHARES EXPECTED TO REACH NEARLY HK6 BILLION WILL GO TOWARD FUTURE POWER PROJECTS HOPEWELL IS IN VARIOUS STAGES OF TALKS WITH THE GOVERNMENTS OF GUANGXI HENAN JIANGSU SHANDONG AND FUJIAN PROVINCES TO DEVELOP 12 MORE POWER STATIONS EACH WITH A CAPACITY OF 660 MEGAWATTS MORE PROJECTS ARE CONTEMPLATED HOPEWELL'S HIGHWAY PROJECTS COULD PROVIDE EVEN GREATER CASH FLOW THE SHENZHENCANTONZHUHAI ROAD FOR EXAMPLE WAS PLANNED TO PROVIDE THE COMPANY WITH AN 18 RETURN ON A US2 BILLION INVESTMENT FOR THE 30 YEARS THAT THE COMPANY WILL OPERATE THE HIGHWAY BEFORE TURNING IT OVER TO ITS CHINESE PARTNER THE GUANGDONG PROVINCIAL GOVERNMENT BUT THAT RETURN WAS BASED ON ESTIMATED TRAFFIC OF 15000 VEHICLES A DAY MOST ANALYSTS USE AT LEAST 30000 VEHICLES A DAY IN THEIR CALCULATIONS THE PROJECTIONS HAVE RISEN BECAUSE OF THE RAPID INTEGRATION OF THE SOUTH CHINA AND HONG KONG ECONOMIES THE ROAD WILL CUT DRIVING TIME BETWEEN THE HONG KONGCHINA BORDER AND CANTON TO AS LITTLE AS AN HOUR FROM THE CURRENT SIX HOURS OR MORE AND HOPEWELL'S MR ELLIOTT POINTS OUT THAT THE ORIGINAL PROJECTIONS DIDN'T TAKE INTO ACCOUNT THE LIKELY INCOME FROM RENTAL OF RETAIL SPACE TO BE BUILT BELOW THE ELEVATED INTERCHANGES AS WELL AS PROFITS FROM BUSINESSES HOPEWELL OR ITS AFFILIATES WILL OPERATE AT THESE SITES IN EUROPE INTERCHANGES EARN AS MUCH IF NOT MORE THAN THE ROADS THEMSELVES SAYS MR ELLIOTT THE TOLL FOR CARS TRAVELING FROM THE HONGKONG BORDER TO CANTON IS EXPECTED TO TOTAL BETWEEN HK75 AND HK80 TRUCKS WILL BE CHARGED ACCORDING TO SIZE WEIGHT AND USE AND BUSES ARE PLANNED TO PLY THE HIGHWAY FERRYING PEOPLE FROM THE BORDER TO THE INTERCHANGES AND BACK HOPEWELL ENVISIONS FURTHER PROPERTY DEVELOPMENT ALONG THE HIGHWAY ALTHOUGH IT DECLINES TO DISCUSS THOSE PLANS NOW FOR THE TIME BEING IT IS FOCUSED ON OPENING THE ROAD A 17KILOMETER STRETCH BETWEEN THE INTERCHANGES OF TAIPING AND SHIGU IS EXPECTED TO OPEN THIS MONTH AS A BONUS FOR FINISHING EARLY THE COMPANY AND ITS CONTRACTORS WILL KEEP ALL TOLLS COLLECTED ON THE ROAD UNTIL JUNE WHEN IT WILL BEGIN SHARING THE INCOME WITH ITS CHINESE PARTNER THE EXACT SIZE OF THAT BONUS WILL DEPEND ON HOW MANY VEHICLES USE THE ROAD ANALYSTS ESTIMATE IT WILL RINGIN HK300 MILLION TO HK400 MILLION FOR HOPEWELL ALONE CONSTRUCTION OF THE SECOND PHASE OF THE HIGHWAY RUNNING FROM CANTON TO ZHUHAI ADJACENT TO MACAO SHOULD BEGIN BY THE END OF THE YEAR HOPEWELL'S OTHER MAJOR HIGHWAY PROJECT IN BANGKOK ISN'T EXPECTED TO GO AS SMOOTHLY THE BANGKOK ELEVATED ROAD AND TRAIN SYSTEM OR BERTS HAS ALREADY RUN INTO TANGLES OF RED TAPE BECAUSE OF SHIFTING POLITICAL WINDS IN THAILAND THE COUNTRY HAS RUN THROUGH FIVE PRIME MINISTERS AND SIX TRANSPORTATION MINISTERS SINCE THE PROJECT WAS ORIGINALLY CONCEIVED IN 1990 9311190078 931119 REVIEW & OUTLOOK EDITORIAL NOW GATT SURELY TEDDY ROOSEVELT WOULDN'T HAVE BEEN CONTENT TO TAKE A HILL WHEN THERE WAS A MOUNTAIN FURTHER AHEAD WAITING TO BE STORMED NOR SHOULD BILL CLINTON REST ON THE LAURELS OF HIS SUPERB NAFTA TRIUMPH WITH A RECORD NUMBER OF ASSISTS DISHED OFF BY NEWT GINGRICH NOW THE BIG ONE LOOMS MOUNT GATT A TRADE LIBERALIZATION ACCORD BETWEEN 108 NATIONS WHICH IF COMPLETED WILL ADD MORE THAN 200 BILLION TO GLOBAL WEALTH CREATION THE OECD SAYS MR CLINTON HAS THE MOMENTUM NOW IS THE TIME TO SECURE A GLOBAL FREE TRADE REGIME FOR THE 21ST CENTURY GATT WAS CONCEIVED TO ALLOW NATIONS TO MORE EASILY DO WHAT WAS GOOD FOR THEM ANYWAY UNILATERAL TARIFF REDUCTIONS ARE BENEFICIAL BUT IF ALL NATIONS AGREE TO REDUCE TRADE BARRIERS SIMULTANEOUSLY GLOBAL MOMENTUM MAKES THE DEAL EASIER TO SELL BUT IN THE ARCANA OF THE NEGOTIATIONS THAT STRATEGY HAS BECOME LOST AT THE BARGAINING TABLE EACH NATION HAS TRIED TO HANG ON TO ITS PROTECTIONS AND BLUFF THE OTHER SIDE THE US BULLIES EUROPE EUROPE RALLIES ROUND FRANCE TO DEFEND EUROPEAN HONOR ASIA PLAYS HARDBALL EACH SIDE GOES ON TV ADMIRING ITS OWN GENEROSITY AND BLASTING SOMEONE ELSE'S MEANNESS IT'S COME TO SEEM THAT NATIONS ONLY BENEFIT FROM TRADE ACCORDS WHEN THEIR NEGOTIATORS CAN BEAT THE OTHER SIDE THAT'S PEROTSTYLE THINKING SHARED BY OTHER PUNDITS IN THE US THE LESSON OF NAFTA IS THAT WHEN LEADERS TAKE THE CASE TO THE PEOPLE VOTERS SWING TOWARD FREE TRADE THAT WAS DISPLAYED IN THE US DEBATE WHEN PEOPLE SAW AL GORE AND ROSS PEROT SIDEBYSIDE TO WIN GATT MR CLINTON MUST PLAY THE OUTSIDE GAME INSTEAD OF BULLYING EUROPEAN AND ASIAN LEADERS HE SHOULD BRING THEM PUBLICLY TOGETHER TO DEMONSTRATE THAT GATT IS A COOPERATIVE GOOD NOT ADVERSARIAL STRUGGLE A PUBLIC EMBRACE WOULD ALSO COOL SOME OF THE NATIONALISTIC ARDOR THAT IS A THREAT TO A SUCCESSFUL ROUND FRANCE HAS WORKED ITSELF INTO SOMETHING OF A FRENZY OVER GATT THIS FRENCH POSITION IS NOT ECONOMICALLY RATIONAL THE FRENCH ARE MOST UPSET ABOUT CUTS IN AGRICULTURAL EXPORT SUBSIDIES BUT ONLY 5 OF FRENCH CITIZENS ARE FARMERS AND ONLY HALF OF THOSE PEOPLE PRODUCE CEREALS THE PRODUCT MOST AFFECTED BY THE DEAL WITH ONLY ONETHIRD OF THEIR PRODUCTS GOING TO EXPORT MEASURED AGAINST THAT GATT COULD PRODUCE A BOOM IN FRENCH WINE AND LIVESTOCK MOREOVER FRANCE IS THE WORLD'S SECOND LARGEST EXPORTER OF SERVICES AND INTELLECTUAL PROPERTY AND FOURTH LARGEST OF MANUFACTURED GOODS A RECENT SURVEY OF FRENCH BUSINESS EXECUTIVIES FOUND THAT 79 FAVOR GATT THESE PEOPLE HAVE UNTIL RECENTLY BEEN AFRAID TO RAISE THEIR HEADS ABOVE THE PARAPETS BECAUSE THE PUBLIC DEBATE HAS BEEN MAUMAUED IN SUCH A WAY THAT TO BE PROGATT IS TO BE ANTIFRENCH LE MONDE CALLS GATT THE CONSPIRACY OF INTERNATIONAL FINANCE AND AN INSTRUMENT OF AMERICAN HEGEMONY BUT MR CLINTON HAS JUST DEMONSTRATED THAT A LEADER WHO RALLIES FREE TRADE FORCES CAN STAND UP TO THE SPECIAL INTERESTS AND EMERGE POLITICALLY ENHANCED EVEN IN FRANCE POLLS SHOW THAT MOST ORDINARY PEOPLE DO NOT SEE TRADE THROUGH THE PRISM OF MERCANTILIST WAR MR CLINTON SHOULD ALSO REGAIN SOME GROUND THAT WAS LOST DURING THE NAFTA FRENZY THE CONCESSIONS ON ENVIRONMENTAL LEGISLATION AND THE MINIMUM WAGE CONVEY THE IMPRESSION THAT THERE IS ONLY A LEVEL PLAYING FIELD FOR TRADE WHEN REGULATIONS AND LIVING STANDARDS ARE HARMONIZED IT'S A VERY SHORT STEP FROM THAT BELIEF TO PROTECTIONISM MR CLINTON NEEDS TO CELEBRATE DIVERSITY AND POINT OUT THAT TRADE IS NOT LIKE FOX HUNTING A SPORT ONLY FOR RICH NATIONS MANY OF THE IMPORTANT GATT ISSUES ARE CLOSE TO OR MOVING TO RESOLUTION SUCH AS INTELLECTUAL PROPERTY SERVICES AUDIO VISUALS EUROPE WILL BE ALLOWED TO SUBSIDIZE ITS TECHNICIANS IF IT GRANTS THE UNITED STATES MARKET ACCESS AND PROCUREMENT THE CLINTON ADMINISTRATION HAS PERSUADED SEVERAL LARGE STATES TO LET FOREIGNERS BID ON CONTRACTS BUT THERE ARE SEVERAL TROUBLESOME AREAS SUCH AS AIRCRAFT TRADE AND FINANCIAL SERVICES THE EC IS WILLING TO LET IN FIRMS FROM CLOSED ASIAN NATIONS BUT THE US IS NOT OVERALL THE US HAS AGREED TO CUT 90 OF ITS PEAK TARIFFS THOSE OF 15 OR MORE WHILE THE EC HAS ONLY AGREED TO CUT 76 AND THE JAPANESE 79 NONETHELESS NEGOTIATORS CAN SEE AN OUTLINE OF AGREEMENT IN ALL OF THESE AREAS IF THERE IS POLITICAL WILL TO GET THERE IT'S HARD TO BELIEVE THAT THESE HUGE TALKS WILL COLLAPSE OVER SUCH THINGS AS THE TARIFFICATION OF JAPANESE RICE THOUGH STATESMEN HAVE COMMITTED GREAT FOLLY IN THE PAST WITH THE BARGAINING SO FAR ADVANCED OUR THEORY IS THAT THEY SHOULD SCUPPER NIGGLING ISSUES LIKE AGRICULTURAL SUBSIDIES DECLARE VICTORY AND GO HOME NAFTA AND GATT TOGETHER WOULD GO A LONG WAY TO BRING GOVERNMENTS UP TO DATE WITH THE MODERN GLOBAL ECONOMY THE WAY MR CLINTON CAN ADVANCE THAT GOAL IS TO REMIND THE WORLD THAT IN CLIMBING MOUNT GATT LIKE CLIMBING ANY MOUNTAIN EVERYBODY IN THE EXPEDITION IS TIED TOGETHER 9311190077 931119 SALOMON LAUNCHES PROBE INTO MISSING CONFERENCING FUNDS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOW WAS 14 MILLION PILFERED FROM THE CONFERENCEPLANNING KITTY AT SALOMON BROTHERS INC THAT'S A MYSTERY THE SALOMON INC SUBSIDIARY IS SEEKING TO SOLVE THE BIG INVESTMENT BANK HAS LAUNCHED AN INTERNAL INVESTIGATION INTO ALLEGATIONS THAT THE FIRM'S CONFERENCEPLANNING SUPERVISOR WAS THE CULPRIT PEOPLE FAMILIAR WITH SALOMON SAY AND NEW YORK CITY POLICE HAVE JOINED THE PROBE MEANWHILE THE CONFERENCEPLANNING CHIEF KATHLEEN TOMPKINS HAS TAKEN A LEAVE OF ABSENCE WE HAVE NOTIFIED THE NEW YORK CITY POLICE DEPARTMENT THAT THE FIRM HAS BEEN THE VICTIM OF A THEFT IN THE AMOUNT OF APPROXIMATELY 14 MILLION SALOMON SAID IN A STATEMENT SALOMON BROTHERS IS COOPERATING WITH THE POLICE INVESTIGATING THE INCIDENT UNDER THE CIRCUMSTANCES IT IS NOT APPROPRIATE FOR US TO COMMENT FURTHER THE THEFT IS AN EMBARRASSMENT FOR SALOMON WITH MUCH FANFARE THE FIRM CREATED A COMPLIANCE COMMITTEE IN THE WAKE OF ITS 1991 TREASURYAUCTION BIDDING SCANDAL IN AN ATTEMPT TO PREVENT MAJOR EMPLOYEE MISSTEPS SALOMON ALSO HAS BEEN TRYING TO KEEP A TIGHTER LID ON EXPENSES SINCE THE SCANDAL THE LATEST MYSTERY WAS FAR REMOVED FROM SALOMON'S TRADING FLOOR HOWEVER AMONG OTHER THINGS ITS CONFERENCEPLANNING STAFF UNDER THE DIRECTION OF ITS CHIEF ORGANIZES THE FIRM'S CLIENT EVENTS AND SOCIAL FUNCTIONS SALOMON WOULDN'T ELABORATE ON ITS STATEMENT BUT PEOPLE FAMILIAR WITH THE FIRM SAY A CONFERENCEPLANNING STAFFER WHO WAS TRANSFERRED TO SALOMON'S PURCHASING DEPARTMENT SPOTTED BILLS FOR ITEMS THAT WERE NEVER USED IN SALOMONSPONSORED CONFERENCES AND EVENTS AND TURNED THE MATTER OVER TO FRANK WALLACE SALOMON'S GENERALSERVICES CHIEF LAST WEEK SALOMON EXECUTIVES CONFRONTED THE 38YEAROLD MRS TOMPKINS ABOUT THE MISSING FUNDS THE PEOPLE SAID ADDING THAT SHE COULDN'T EXPLAIN WHERE THE MONEY WENT MR WALLACE DECLINED TO COMMENT AS DID MRS TOMPKINS WHOM SALOMON SAYS IS NOW ON MEDICAL LEAVE SHE ISN'T AN ACCOUNTANT AND CAN'T DRAW ANY CONCLUSIONS ABOUT THE BASIS OF THE DISCREPANCIES AT THIS POINT SAYS HAROLD POSTER MRS TOMPKINS'S LAWYER MR POSTER SAID HIS CLIENT A 10YEAR SALOMON VETERAN IS A VALUED MANAGERIAL EMPLOYEE BUT BEFORE TAKING HER LEAVE LAST WEEK MRS TOMPKINS HAD SOME DISCUSSIONS WITH RESPECT TO SOME DISCREPANCIES MR POSTER SAID THE POLICE HAVEN'T CONTACTED MRS TOMPKINS MR POSTER SAID WE'RE TRYING TO GET TO THE BOTTOM OF THE SITUATION HE ADDED 9311190076 931119 REVIEW & OUTLOOK EDITORIAL KEPT IN THE CABINET YES THE VOTE TO APPROVE NAFTA WAS GOOD BUT DON'T EXPECT THE HOUSE TO BE ABLE TO DO SOMETHING ECONOMICALLY SENSIBLE TWO TIMES IN A ROW THE MEMBERS' NEXT BIG VOTE IS ON A BILL TO ELEVATE THE ENVIRONMENTAL PROTECTION AGENCY TO CABINET STATUS THAT MAY BE AT LEAST QUESTIONABLE BUT THEY'VE MANAGED TO MAKE THE EFFORT A BADLY LOST OPPORTUNITY TO FIX A WELLKNOWN ENVIRONMENTAL PROBLEM COSTS ACCORDING TO THE CURRENT EPA HEAD CAROL BROWNER ELEVATING THE AGENCY WILL ENSURE THAT ENVIRONMENTAL CONCERNS ARE AT THE MIDDLE NOT THE MARGINS OF ALL POLICY DECISIONS HMMM REP JOHN CONYERS PROVIDES THE TRANSLATION EPA PERSONNEL NEED AS MUCH POWER BEHIND THEM AS WE CAN POSSIBLY GIVE THEM CABINET STATUS WOULD CONFER THAT AH YES MORE RAW FEDERAL POWER THOSE WORDS VERY CLEAR MR CONYERS ALSO LIKES THE LEGISLATION IN PART BECAUSE THERE'S A LITTLE PORK IN IT FOR HIM IN THE FORM OF THE ORWELLIANSOUNDING OFFICE OF ENVIRONMENTAL JUSTICE WHICH WILL MONITOR ENVIRONMENTAL ENFORCEMENT AND HOW IT AFFECTS MINORITIES BUT WE WANTED TO RAISE THE ISSUE OF COSTS IN MAY THE SENATE EASILY PASSED AN AMENDMENT TO THE EPA BILL REQUIRING THAT THE AGENCY BEFORE ISSUING ANY NEW REGULATION ESTIMATE THE COST OF IMPLEMENTATION AND COMPLIANCE WHILE ALSO PERFORMING A RISKASSESSMENT STUDY REASONABLY ENOUGH THIS AMENDMENT WOULD HELP FERRET OUT USELESS REGULATION ENTER REP HENRY WAXMAN FOLLOWING SENATE PASSAGE REP WAXMAN AND FOUR OTHER HOUSE LIBERALS SENT A LETTER TO PRESIDENT CLINTON PLEADING WITH HIM TO OPPOSE A SIMILAR HOUSE AMENDMENT INTRODUCED BY REPS BOB MICA AND KAREN THURMAN WHY OPPOSE A MEASURE THAT WILL DO NOTHING MORE THAN INFORM PEOPLE OF THE COSTS OF ENVIRONMENTAL REGULATION AND THE RISKS AT STAKE WE'RE TOLD BY MR WAXMAN'S OFFICE THAT HE OPPOSES THE AMENDMENT BECAUSE OF THE EXPENSE INVOLVED WITH DOING COSTBENEFIT ANALYSIS SOMETHING ABOUT SCARCE FEDERAL RESOURCES SO WHAT'S THE COST THEY POINTED US TO A CONGRESSIONAL BUDGET OFFICE STUDY RELEASED IN JULY WHICH ESTIMATED THE ANNUAL COST OF DOING THE STUDIES TO BE 20 MILLION A NO DOUBT SHOCKING SUM AROUND THE WAXMAN OFFICE THE LEADING SOURCE OF EXPLODING MEDICAID MANDATES ON THE STATES MR WAXMAN'S CONVERSION TO FISCAL CONSERVATISM MUST NONETHELESS BE SET AGAINST A RECENT NATIONAL TAXPAYERS UNION STUDY WHICH FOUND THAT IN THE FIRST FIVE MONTHS OF THE CURRENT CONGRESSIONAL SESSION MR WAXMAN SPONSORED OR COSPONSORED LEGISLATION THAT WOULD INCREASE FEDERAL SPENDING BY 674 BILLION CORRESPONDING SPONSORSHIP OF SPENDING CUTS NONE MEANWHILE THE WAXMAN FORCES HAVE RECEIVED A BIG ASSIST FROM REP JOE MOAKLEY CHAIRMAN OF THE RULES COMMITTEE WHO THIS WEEK PREVENTED A VOTE ON THE MICATHURMAN AMENDMENT SAYING THAT IT IS NOT GERMANE TO THE EPA ELEVATION BILL WHAT'S GOING ON HERE IS THAT THESE MEMBERS OPPOSE COSTBENEFIT ANALYSIS FOR PROPOSED REGULATIONS BECAUSE IT WOULD USURP THEIR AUTHORITY THE EPA IN THEIR WORLD IS AN AGENCY THAT EXISTS TO DO WHAT IT IS TOLD TO DO BY THE WAXMANS AND DINGELLS OF THE WORLD REGARDLESS OF WHAT SOME PIDDLING RISKBENEFIT ANALYSIS CONCLUDES PEOPLE WONDER WHY ENVIRONMENTAL ENFORCEMENT CAUSES SUCH BITTER BATTLES OUT IN THE COUNTRY TODAY'S EXPECTED VOTE ON GETTING EPA INTO THE CABINET WILL DO A LOT TO EXPLAIN WHY 9311190075 931119 ECONOMY FLEET FINANCIAL GEORGIA SEEK A SETTLEMENT CASE INVOLVES ALLEGATIONS OF PREDATORY LENDING BY ATLANTABASED UNIT BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL A UNIT OF FLEET FINANCIAL GROUP INC IS NEGOTIATING WITH THE GEORGIA ATTORNEY GENERAL TO SETTLE ALLEGATIONS OF PREDATORY LENDING THAT SINGLED OUT MINORITIES IN THE STATE PEOPLE FAMILIAR WITH THE NEGOTIATIONS SAY THE BANKHOLDING COMPANY'S FLEET FINANCE UNIT HAS BEEN UNDER INVESTIGATION FOR HIGHINTEREST MORTGAGE LOANS THAT HAVE SPURRED CONSUMER COMPLAINTS AND IS DISCUSSING SETTLEMENT TERMS ALTHOUGH NO CHARGES HAVE BEEN FILED IN THE CASE FLEET FINANCE IS BASED IN ATLANTA UNDER PREDATORY LENDING A BANK KNOWINGLY LENDS MONEY TO PEOPLE WHO IT KNOWS DON'T QUALIFY FOR LOANS IN ORDER TO FORECLOSE ON THEM LATER AND SELL THE PROPERTY AT A PROFIT A SPOKESMAN FOR FLEET FINANCIAL GROUP IN PROVIDENCE RI CONFIRMED THAT FLEET FINANCE IS UNDER INVESTIGATION IN GEORGIA AND SAID THE COMPANY IS FULLY COOPERATING WITH THE PROBE HE DECLINED TO COMMENT ON ANY SETTLEMENT TALKS ONE ATTORNEY CLOSE TO THE TALKS SAID A PROPOSAL UNDER DISCUSSION INVOLVES RESTITUTION PAYMENTS OF UP TO 30 MILLION BY FLEET TO PAST BORROWERS AND A FLEET PLEDGE TO LEND AS MUCH AS 80 MILLION ON FAVORABLE TERMS TO BORROWERS IN LOWINCOME COMMUNITIES IF THE MATTER IS RESOLVED ON THOSE TERMS IT WOULD MAKE THE SETTLEMENT ONE OF THE LARGEST EVER IN CASES INVOLVING SUSPICIONS OF LENDING PRACTICES THAT UNFAIRLY AFFECT MINORITIES ENFORCEMENT OF FEDERAL FAIRLENDING AND COMMUNITYREINVESTMENT LAWS HAS BECOME A MAIN THEME IN THE CLINTON ADMINISTRATION'S BANKREGULATORY POLICIES REPORTS OF THE PROPOSED SETTLEMENT FIRST APPEARED YESTERDAY IN THE ATLANTA CONSTITUTION ATTORNEY GENERAL MICHAEL J BOWERS SAID THE STATE HAS NEGOTIATED WITH FLEET FOR SEVERAL WEEKS LOOKING FOR A RESOLUTION TO ALLEGATIONS THAT FLEET FINANCE VIOLATED STATE FAIR BUSINESS LAWS HE WOULDN'T ELABORATE ON THE INVESTIGATION AND SAID NO SETTLEMENT HAS YET BEEN REACHED JAMES MYNATT A DIRECTOR OF THE ATLANTA MORTGAGE CONSORTIUM SAID OFFICIALS OF THE ATTORNEY GENERAL'S AND GOVERNOR'S OFFICES RECENTLY APPROACHED THE NONPROFIT GROUP WITH A SETTLEMENT PROPOSAL THAT WOULD INVOLVE FLEET CONTRIBUTIONS TO THE CONSORTIUM'S LENDING FUND THE CONSORTIUM HAS ALREADY RECEIVED FUNDS FROM SEVEN ATLANTA BANKS THAT WERE CRITICIZED IN THE LATE 1980S FOR THEIR LENDING RECORD TO MINORITIES MR MYNATT SAID FLEET IS FACING TWO PRIVATE CLASSACTION LAWSUITS IN THE STATE RELATED TO ITS LENDING PRACTICES AT ISSUE IN THOSE CASES AND IN THE ATTORNEY GENERAL'S INVESTIGATION IS WHETHER FLEET FINANCE'S PRACTICE OF MAKING LOANS AT DOUBLEDIGIT INTEREST RATES AND OF FINANCING OTHER LENDERS WHO MADE SIMILAR LOANS VIOLATED LAWS AGAINST RACIAL DISCRIMINATION FLEET FINANCE WAS PURCHASED BY FLEET FINANCIAL IN THE EARLY 1970S IT OPERATES IN 23 STATES NATIONWIDE A PERSON FAMILIAR WITH THE INVESTIGATION SAID THE ATTORNEY GENERAL SUSPECTS FLEET AND THE LENDERS IT FINANCED SINGLED OUT MINORITIES FOR THESE LOANS AND USED DECEPTIVE PRACTICES IN MARKETING THEM SOME OF THE LOANS RESULTED IN HOUSE FORECLOSURES FLEET HAS SAID THAT THE AVERAGE PERCENTAGE RATE IN ITS GEORGIA LOAN PORTFOLIO IS 159 BUT AFFIDAVITS PRODUCED BY PLAINTIFFS IN A ONE GEORGIA LAWSUIT ALLEGED THAT LOANS FINANCED BY FLEET CARRIED MORTGAGE RATES OF UP TO 23 AND MORE THAN 30 IN SOME CASES WHEN ADJUSTED FOR UPFRONT FEES GEORGIA AMENDED ITS USURY LAW IN 1983 ALLOWING RATES OF UP TO 5 A MONTH 9311190074 931119 AEGON'S PROFIT ROSE 55 IN NINE MONTHS ON 14 SALES INCREASE SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM DUTCH INSURANCE GROUP AEGON NV SAID ITS NET INCOME IN THE FIRST NINE MONTHS OF 1993 ROSE 55 FROM A YEAR EARLIER ON 14 HIGHER SALES THE COMPANY ALSO REITERATED ITS FULLYEAR FORECAST OF MODEST EARNINGS GROWTH PROFIT IN THE FIRST NINE MONTHS ROSE TO 7368 MILLION GUILDERS 38616 MILLION OR 727 GUILDERS 381 A SHARE FROM 6983 MILLION GUILDERS OR 706 GUILDERS A SHARE A YEAR EARLIER ALMOST ALL OF ITS OPERATIONS HAD IMPROVED EARNINGS COST CONTAINMENT CONTINUED TO BUOY PROFITABILITY AN AEGON SPOKESMAN SAID A COMBINATION OF MEASURES TO ENHANCE EFFICIENCY ACQUISITIONS AND HIGHER REVENUE IN THE US AND EUROPE WERE THE MAIN REASONS FOR IMPROVED FINANCIAL RESULTS THE COMPANY'S GLOBAL REVENUE FROM ALL BUSINESS LINES ROSE 14 TO 1306 BILLION GUILDERS 684 BILLION FROM 1141 BILLION GUILDERS AEGON'S SOCALLED AFTERTAX OPERATIONAL EARNINGS WHICH EXCLUDE CERTAIN CAPITAL GAINS ROSE 93 IN THE NINE MONTHS TO 6244 MILLION GUILDERS FROM 5713 MILLION GUILDERS AEGON'S THIRDQUARTER NET PROFIT WAS 240 MILLION GUILDERS COMPARED WITH 235 MILLION GUILDERS A YEAR EARLIER THIS MODEST INCREASE REFLECTS MAINLY A DECLINE IN EARNINGS AT THE COMPANY'S BANKING AND NONINSURANCE ACTIVITIES AS WELL AS THE HEALTH AND ACCIDENT INSURANCE BUSINESSES REVENUE FROM ALL BUSINESS LINES IN THE QUARTER ROSE 24 TO 418 BILLION GUILDERS FROM 338 BILLION GUILDERS 9311190073 931119 GM AND CHRYSLER PLAN OVERTIME NEXT WEEK DETROIT GENERAL MOTORS CORP SAID IT PLANS OVERTIME PRODUCTION NEXT WEEK AT TWO CAR ASSEMBLY PLANTS IN LANSING MICH AND TRUCK ASSEMBLY PLANTS IN FORT WAYNE IND PONTIAC MICH BALTIMORE AND OSHAWA ONTARIO CHRYSLER CORP SAID IT PLANS OVERTIME AT ASSEMBLY PLANTS IN DETROIT WARREN AND STERLING HEIGHTS MICH ST LOUIS NEWARK NJ AND BRAMALEA AND WINDSOR ONTARIO FORD MOTOR CO WHICH DECLINED TO SAY WHAT ITS PLANS ARE FOR NEXT WEEK SAID IT HAS OPERATED DAILY OVERTIME THIS WEEK AT CAR ASSEMBLY PLANTS IN CHICAGO DEARBORN MICH KANSAS CITY MO AND LORAIN OHIO AND TRUCK PLANTS IN AVON LAKE OHIO EDISON NJ KANSAS CITY MO ST PAUL MINN AND ST LOUIS OVERALL THE TEN DOMESTIC AUTO MAKERS PLAN TO BUILD 253913 CARS AND TRUCKS THIS WEEK AN INCREASE OF 89 FROM 134410 VEHICLES BUILT IN THE SAME WEEK A YEAR AGO WHICH INCLUDED THE THANKSGIVING DAY HOLIDAY BREAK ALL OF THE US AUTO MAKERS WILL BE CLOSED ON THURSDAY AND FRIDAY OF NEXT WEEK IN OBSERVANCE OF THE THANKSGIVING HOLIDAY 9311190072 931119 NAFTA THE ROAD AHEAD UNLIKELY ALLIES PRESIDENT IS WOOING AND MOSTLY PLEASING BIGBUSINESS LEADERS DESPITE EPISODES OF BASHING CLINTON POLICIES ARE SEEN AS GENERALLY SUPPORTIVE BUT SMALL FIRMS ARE CRITICAL BY JEFFREY H BIRNBAUM AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON LAST YEAR LODWRICK COOK CHIEF EXECUTIVE OF ATLANTIC RICHFIELD CO WAS COCHAIRMAN OF PRESIDENT BUSH'S REELECTION DRIVE THIS YEAR MR COOK CELEBRATED HIS 65TH BIRTHDAY IN THE WHITE HOUSE WITH BILL CLINTON LEADING THE SINGING EVEN THOUGH PRESIDENT CLINTON HAS RAILED AGAINST RICH PEOPLE SPECIALINTEREST LOBBYISTS OVERPAID EXECUTIVES AND INSURANCE AND DRUG COMPANIES HE IS NOW AGGRESSIVELY WOOING BIG BUSINESS INVITING SMALL GROUPS OF TOP CORPORATE EXECUTIVES 80 IN THE PAST 10 MONTHS IN TO LUNCH ON ISSUE AFTER ISSUE MR CLINTON AND HIS ADMINISTRATION COME DOWN ON THE SAME SIDE AS CORPORATE AMERICA WITH THE SUCCESSFUL FIGHT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT ONLY THE MOST CONSPICUOUS EXAMPLE THE PRESIDENT PROPOSES TO HAVE THE GOVERNMENT PICK UP THE HEALTHINSURANCE TAB FOR BIG COMPANIES' EARLY RETIREES HE WANTS TO ALTER US FOREIGN AID TO FORCE RECIPIENTS TO BUY MORE US GOODS AND HAS EXTENDED CHINA'S FAVORABLE TRADE STATUS HE HAS AVOIDED THE EXTREMES OF ENVIRONMENTAL REGULATION AND IS MOVING TOWARD COMPROMISE ON SUCH CONTENTIOUS MATTERS AS REFORM OF THE SUPERFUND DUMPSITE CLEANUP PROGRAM THE BIG THREE AUTO MAKERS CAN HARDLY FIND ANYTHING TO COMPLAIN ABOUT MR CLINTON EVEN SEEMS TO HAVE WALKED AWAY FROM HIS CAMPAIGN VOW TO REQUIRE THEM TO BUILD MORE FUELEFFICIENT CARS INSTEAD HE IS PROMISING THEM FEDERAL MONEY FOR RESEARCH WE'RE GETTING ALONG MUCH BETTER WITH THIS ADMINISTRATION THAN WE DID WITH PREVIOUS ONES CONFIDES HAROLD RED POLING THE RECENTLY RETIRED CHAIRMAN OF FORD MOTOR CO SOME OTHER INDUSTRIALISTS VOICE SIMILAR SENTIMENTS TAKE IT ISSUE BY ISSUE SAYS CURTIS BARNETTE CHAIRMAN OF BETHLEHEM STEEL CORP IS BILL CLINTON GOOD FOR AMERICAN BUSINESS ON TRADE ISSUES YES ON HEALTH CARE YES WAS THE ECONOMIC PLAN WITH ALL ITS IMPERFECTIONS SOMETHING THAT SHOULD HAVE BENEFITS YES AND WHILE BIG COMPANIES ARE BECOMING CHUMMIER WITH MR CLINTON LABOR UNIONS AND CONSUMER ACTIVISTS ARE TURNING VENOMOUS TOWARD HIM ESPECIALLY AFTER THE BITTER NAFTA FIGHT THE PRESIDENT HAS TURNED HIS BACK ON US COMPLAINS TEAMSTERS UNION PRESIDENT RON CAREY IRA ARLOOK EXECUTIVE DIRECTOR FOR CITIZEN ACTION SAYS THUS FAR HE HAS CARRIED THE WATER FOR THE BIGGEST CORPORATIONS' AGENDA IT DOESN'T AUGUR WELL FOR THE FUTURE HOWEVER THE PRESIDENT AND HIS WIFE HILLARY RODHAM CLINTON AREN'T ABOVE BUSINESSBASHING FROM TIME TO TIME AS THEY ASSEMBLE SHIFTING COALITIONS LOOKING FOR ENEMIES TO HELP SOLIDIFY SUPPORT FOR THEIR HEALTHCARE PLAN FOR INSTANCE MRS CLINTON HAS LASHED OUT AT INSURERS DRUG COMPANIES AND CIGARETTE MAKERS BUT IN MR CLINTON'S WASHINGTON A FOE ON ONE ISSUE CAN EASILY BE A FRIEND ON ANOTHER CRAIG FULLER A FORMER BUSH AIDE WHO IS NOW SENIOR VICE PRESIDENT OF PHILIP MORRIS COS IS FIGHTING THE CLINTONS' PROPOSAL TO RAISE CIGARETTE TAXES BY 75 CENTS A PACK BUT WAS A SOLID ALLY IN THE NAFTA CAMPAIGN THE WHITE HOUSE HAS WORKED HARD WITH SOME SUCCESS TO PERSUADE BIGCOMPANY CHIEF EXECUTIVE OFFICERS TO PUBLICLY PROCLAIM SUPPORT FOR ITS INITIATIVES EVEN THOSE THAT DON'T OFFER THEM IMMEDIATE BENEFITS AFTER WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY A FORMER CEO HIMSELF ARRANGED FOR MR COOK TO CHAT WITH MR CLINTON ABOARD AIR FORCE ONE THE OILCOMPANY EXECUTIVE APPEARED AT THE PRESIDENT'S SIDE TO ENDORSE THE CLINTON ECONOMIC PLAN WHICH INCLUDED AN ENERGY TAX AND A BIG INCREASE IN CORPORATE TAX RATES HE HAS TAKEN A GUTSY STEP AND DESERVES OUR SUPPORT MR COOK SAID IN FEBRUARY BUT SUCH ENTHUSIASM FOR MR CLINTON IS FAR FROM UNIVERSAL AMONG BIGCOMPANY CEOS MANY SIMPLY DON'T TRUST MR CLINTON AFTER ALL HE RAISED PERSONAL TAXES FOR VIRTUALLY ALL OF THEM AND MOST OF THEIR CORPORATE TAXES AS WELL AND THEY WORRY ABOUT HIS AFFINITY FOR GOVERNMENTLED SOLUTIONS TO EVERYTHING I'M NOT QUITE SURE WHERE CLINTON COMES DOWN FRANK POPOFF CHAIRMAN OF DOW CHEMICAL CO SAYS WARILY I DO CONCERN MYSELF THAT SOME OF THE INITIATIVES ARE ZEALOUS AND ARE PREDICATED ON GOVERNMENT BEING THE FIRST LINE OF DEFENSE RATHER THAN THE LAST LINE OF DEFENSE MR CLINTON AND HIS ADVISERS ARE KEENLY AWARE OF THE SUSPICION WITH WHICH BIG BUSINESS VIEWS THEM DEMOCRATIC PRESIDENTS HAVE A HIGHER BAR SAYS ROBERT RUBIN THE FORMER COCHAIRMAN OF GOLDMAN SACHS & CO WHO NOW HEADS MR CLINTON'S NATIONAL ECONOMIC COUNCIL BUT THAT JUST SEEMS TO MAKE THE PRESIDENT WORK HARDER TO WIN OVER CORPORATE CHIEFTAINS HE WANTED TO BE SURE HE WASN'T SEEN AS HOSTILE SAYS GEORGE STEPHANOPOULOS THE WHITE HOUSE AIDE HE WAS NOT GOING TO BE LABELED ANTIBUSINESS' AS A DEMOCRAT USUALLY IS IN TRUTH DEMOCRATIC PRESIDENTS HAVEN'T LIVED UP TO THIS REPUTATION SINCE WORLD WAR II DEMOCRATIC PRESIDENTS HAVE NOT BEEN ANTIBUSINESS CONTENDS CHARLES JONES A PRESIDENTIAL SCHOLAR AT THE UNIVERSITY OF WISCONSIN PRESIDENTS KENNEDY AND JOHNSON WERE MEN OF WEALTH WHO COULD DEAL WITH CORPORATE LEADERS EASILY PRESIDENT CARTER HAD OWNED HIS OWN BUSINESS AND KNEW WHAT IT WAS LIKE TO GO BROKE HE CERTAINLY WAS SENSITIVE TO THAT MR JONES NOTES BUT DEMOCRATIC PRESIDENTS DO TEND TO APPEAL MORE TO BIG CORPORATIONS THAN TO THE LEGIONS OF SMALLBUSINESS OWNERS DESPITE MR CLINTON'S RHETORICAL SUPPORT FOR SMALL BUSINESSES THE SMALLBUSINESS LOBBY HAS BEEN AMONG HIS FIERCEST CRITICS BOTH ON LAST SUMMER'S TAX BILL AND ON HIS HEALTHCARE INITIATIVE WHICH WOULD FORCE MANY SMALL BUSINESSES TO OFFER HEALTH INSURANCE TO THEIR WORKERS FOR THE FIRST TIME WHEN WE COME RIGHT DOWN TO IT AND LOOK AT WHAT HE IS DOING SMALLBUSINESS OWNERS SAY THEY HAVE GRAVE CONCERNS SAYS JACK FARIS PRESIDENT OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS HERE'S A LOOK AT HOW CLINTON POLICIES AFFECT LARGE COMPANIES DEFICIT AND TAXES MR CLINTON TACKLED THE DEFICIT AT THE START OF HIS PRESIDENCY AS MANY BUSINESS EXECUTIVES HAD URGED FEW HOWEVER LIKED THE SPECIFICS A NEW ENERGY TAX A TWOPERCENTAGEPOINT INCREASE IN THE CORPORATE INCOME TAX AND A SHARP TAX INCREASE ON UPPERINCOME FAMILIES BUT AFTER INTRODUCING HIS PLAN MR CLINTON PROMPTLY BEGAN COMPROMISING IN WAYS THAT PLEASED BUSINESS THE ENERGY TAX WAS ALTERED TO QUIET BUSINESS COMPLAINTS BEFORE THE PROPOSAL DIED ALTOGETHER THE WHITE HOUSE WENT ALONG WITH A SMALLER ONEPERCENTAGEPOINT INCREASE IN THE CORPORATE TAX RATE AND SMALLER TAX INCREASES ON BUSINESS WERE DROPPED WITHOUT A FIGHT HEALTH CARE MR CLINTON'S HEALTH PLAN FRIGHTENS MANY EXECUTIVES BECAUSE OF THE PROSPECT OF A MUCHEXPANDED GOVERNMENT ROLE ALSO CAUSING UNEASINESS IS THE PROPOSED FINANCING WHICH INCLUDES A 1 PAYROLL TAX ON BIG COMPANIES BUT THE PLAN ACTUALLY IS FAR KINDER TO BIG COMPANIES THAN TO SMALL ONES MAJOR INSURERS DESPITE MRS CLINTON'S ATTACKS ARE LIKELY TO BE BIG WINNERS THE SMALLER ONES ARE DOING ALL THE GROUSING FEW BIG EMPLOYERS WOULD BE FORCED TO OFFER BENEFITS MORE GENEROUS THAN THEY DO NOW AND THEY WOULD BENEFIT IF SMALLER COMPETITORS HAVE TO PAY MORE OF THEIR EMPLOYEES' HEALTH COSTS AND BIG COMPANIES ARE THE BIG WINNERS IF MR CLINTON PERSUADES CONGRESS TO SPEND 4 BILLION A YEAR ON RETIREE HEALTH COSTS THAT EMPLOYERS WOULD OTHERWISE PAY INDEED THE PROVISION WAS INCLUDED TO WOO COMPANIES SUCH AS BETHLEHEM STEEL WHICH INSURES 21000 ACTIVE WORKERS AND 70000 RETIREES IF YOU ASK YOURSELF WHAT THE PUBLIC FISC OUGHT TO BE PICKING UP I WOULDN'T THINK THAT RETIREE HEALTH SHOULD BE ON THE LIST SAYS MICHAEL GRAETZ A YALE LAW PROFESSOR WHO WORKED ON HEALTH ISSUES IN THE BUSH TREASURY ENVIRONMENT ALARMED BY THE ENVIRONMENTALIST LEANINGS OF VICE PRESIDENT AL GORE BUSINESSES BRACED FOR A ROUND OF TOUGH NEW REGULATIONS WHEN MR CLINTON WAS ELECTED BUT SO FAR THEY ARE PLEASED BY THE RHETORIC AND THE SUBSTANCE OF HIS POLICIES MR CLINTON HAS SIDED WITH ENVIRONMENTALISTS AGAINST BUSINESS ON ONLY ONE ISSUE OVER THE OBJECTIONS OF THE PAPER INDUSTRY HE ORDERED THE GOVERNMENT TO USE MORE RECYCLED PAPER BUT SEVERAL MAJOR ISSUES ARE STILL PENDING AND DOW CHEMICAL'S MR POPOFF SAYS HE IS WAITING TO SEE WHETHER THE CONCILIATORY AND CONSENSUSORIENTED TALK FROM THE TOP IS MATCHED BY A CHANGE IN THE BUREAUCRACY'S ADVERSARIAL APPROACH SOME COMPANIES ARE WATCHING HOW MR CLINTON HANDLES THE COMPLEX LITIGIOUS SUPERFUND ISSUE ON WHICH HE PROBABLY WILL HAVE TO CHOOSE BEFORE YEAR END BETWEEN THE TREASURY DEPARTMENT AND THE ENVIRONMENTAL PROTECTION AGENCY BUSINESS GENERALLY SIDES WITH THE TREASURY WHICH IS PROPOSING A CHANGE IN THE LAW THAT NOW MAKES ANY COMPANY FOUND TO HAVE DUMPED ANY HAZARDOUS MATERIAL AT A SITE LIABLE FOR THE ENTIRE CLEANUP COST BUT EVEN THE EPA'S POSITION IS BETTER THAN CURRENT LAW BUSINESSES SAY AND INDUSTRY IS HEARTENED THAT THE WHITE HOUSE TASK FORCE IS HEADED BY ECONOMIC AND ENVIRONMENTAL AIDES TO THE PRESIDENT RATHER THAN BY THE EPA TRADE BEYOND NAFTA BIG BUSINESS IS GENERALLY PLEASED BY MR CLINTON'S STANCE PARTICULARLY HIS EFFORTS TO PRY OPEN THE JAPANESE MARKETS FOR TELECOMMUNICATIONS INSURANCE MEDICAL EQUIPMENT AND OTHER PRODUCTS OFFICIALS FROM THE SAME INDUSTRIES WERE DISMAYED BY MR CLINTON'S THREATS TO CUT OFF CHINA'S FAVORABLE TRADE STATUS BUT WERE RELIEVED WHEN HE DIDN'T AT LEAST FOR NOW BUSINESSES ALSO WERE PLEASED BY HIS PLAN TO LINK ABOUT 150 MILLION IN FOREIGN AID TO PURCHASES OF US GOODS THE NEXT BIG TRADE FIGHT WILL COME IF NEGOTIATORS CONCLUDE THE CURRENT ROUND OF GLOBAL TALKS HERE MR CLINTON PROBABLY WON'T PLEASE ALL BUSINESS GROUPS BANKERS INSURERS SOFTWARE COMPANIES DRUG MAKERS AND OTHERS WANT TO GET ACCESS TO DEVELOPING COUNTRIES BUT TEXTILE APPAREL AND SOME AGRICULTURAL INTERESTS ARE WARY OF WHAT THE US MAY CONCEDE TO GAIN IT MR CLINTON CLEARLY HAS SCORED BIG WITH BUSINESS BY FIGHTING SO HARD FOR NAFTA DESPITE THE FIERCE OPPOSITION FROM LABOR AND ENVIRONMENTAL GROUPS THEY CAN WORK ON THINGS IN A POSITIVE VEIN EVEN AFTER WE FOUGHT THEM LIKE DOGS ON SOMETHING ELSE MARVELS RICHARD LESHER PRESIDENT OF THE US CHAMBER OF COMMERCE THAT WASN'T EVEN TRUE DURING SOME OF THE REPUBLICAN DAYS THE PRESIDENT'S AFFINITY FOR THE BUSINESS ESTABLISHMENT CONTINUES A PATTERN BEGUN WHEN HE WAS GOVERNOR OF ARKANSAS THERE HE FORMED A CLOSE WORKING RELATIONSHIP WITH THE GROUP OF TOP CORPORATE EXECUTIVES NICKNAMED THE GOOD SUIT CLUB HE MADE A VERY STRONG COMMITMENT TO JOB CREATION AND THAT'S WHERE JOBS COME FROM SAYS BETSEY WRIGHT WHO WAS HIS CHIEF OF STAFF IN ARKANSAS AND NOW IS A WASHINGTON LOBBYIST DURING THE 1992 CAMPAIGN MR CLINTON COURTED BIGBUSINESS SUPPORT AFTER THE ELECTION HE INVITED A RAFT OF CEOS TO HIS TELEVISED ECONOMIC SUMMIT IN LITTLE ROCK AND NAMED MR MCLARTY A MEMBER OF THE GOOD SUIT CLUB HE HEADED ARKLA INC A NATURALGAS COMPANY AS HIS WHITE HOUSE CHIEF OF STAFF PART OF MR MCLARTY'S JOB HAS BEEN TO SERVE AS AMBASSADORATLARGE TO THE BUSINESS COMMUNITY A FUNCTION HE SHARES WITH THREE OF THE ADMINISTRATION'S OTHER DESIGNATED FRIENDS OF BUSINESS TREASURY SECRETARY LLOYD BENTSEN AND TWO FORMER INVESTMENT BANKERS MR RUBIN AND DEPUTY TREASURY SECRETARY ROGER ALTMAN THERE ISN'T ANY GOOD SUIT CLUB IN WASHINGTON BUT THE ACTIVIST CLINTON PRESIDENCY HAS REVIVED THE BUSINESS ROUNDTABLE WHICH CONSISTS OF 200 BIGCOMPANY CEOS DURING THE REAGAN AND BUSH ADMINISTRATIONS THE ROUNDTABLE WAS NEARLY IRRELEVANT NOW IT'S A MAJOR PLAYER IT FORMED THE CORE OF USA NAFTA A PRONAFTA GROUP THAT HAD LOBBYISTS FOR NEARLY EVERY BIG BUSINESS INTEREST IN WASHINGTON WORKING HANDINHAND WITH THE WHITE HOUSE AND IT EXPECTS TO STAY IN THE THICK OF THINGS THERE'S SO MUCH MORE OF MAJOR IMPORTANCE TO OUR AGENDA THAT'S GOING ON SAYS JOHN ONG THE ROUNDTABLE'S CHAIRMAN AND CHIEF EXECUTIVE OF BF GOODRICH CO MR ALTMAN FIGURES THAT IN THE END BUSINESS EXECUTIVES CARE MORE ABOUT RESULTS THAN WHETHER THEY ARE DELIVERED BY A DEMOCRAT OR A REPUBLICAN HE CONTENDS THAT A STRENGTHENING ECONOMY A BUOYANT STOCK MARKET AND THE LOWEST INTEREST RATES IN A DECADE EVEN IF MR CLINTON DOESN'T DESERVE ALL THE CREDIT WILL SOFTEN BUSINESS EXECUTIVES' ANTIPATHY AND IF NOT MOST EXECUTIVES ARE WARMED BY A WHITE HOUSE LUNCHEON INVITATION EIGHTY TOP EXECUTIVES WHO HAVE LUNCHED WITH BILL CLINTON AT THE WHITE HOUSE IN THE PAST 10 MONTHS 9311190071 931119 WHO'S NEWS SPHINX PHARMACEUTICALS CORP SPHINX PHARMACEUTICALS CORP DURHAM NC RICHARD W REICHOW 42 YEARS OLD WILL BECOME INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS PHARMACEUTICAL COMPANY ON DEC 1 MR REICHOW'S PREVIOUS POSITION WAS AS THE COMPANY'S CHIEF FINANCIAL OFFICER HE STEPS IN FOR CLAYTON I DUNCAN 44 WHO ANNOUNCED IN AUGUST THAT HE WOULD RESIGN AT THE END OF NOVEMBER 9311190070 931119 ABREAST OF THE MARKET INDUSTRIALS SLIP 1901 AS INVESTORS SHIFT FOCUS TO INTEREST RATE RISE BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITH THE NORTH AMERICAN FREE TRADE AGREEMENT PASSED BY THE HOUSE STOCK INVESTORS FOCUSED ON INTEREST RATES AND THEY DIDN'T LIKE WHAT THEY SAW A WIDE SWATH OF STOCKS RETREATED PUSHING THE DOW JONES INDUSTRIAL AVERAGE BACK BELOW THE 3700 LEVEL IT CLOSED WITH A LOSS OF 1901 OR 051 TO 368534 AT ITS SESSION LOW THE AVERAGE WAS DOWN MORE THAN 36 STOCK PRICES HAD RALLIED IN THE DAYS LEADING UP TO WEDNESDAY NIGHT'S APPROVAL OF THE NAFTA AGREEMENT BY THE HOUSE BY YESTERDAY MORNING INVESTORS WERE READY TO LOCK IN SOME OF THEIR GAINS AND A SLIDE IN BOND PRICES SET THAT IN MOTION ALTHOUGH ECONOMIC GROWTH SHOULD HELP PROFITS AND STOCK PRICES INVESTORS FEAR THAT HIGHER RATES WILL CUT OFF THE FLOW OF MONEY INTO STOCKS ANALYSTS SAID POOR RETURNS ON INTERESTBEARING INVESTMENTS HAVE SENT MONEY POURING INTO STOCKS THIS YEAR FUELING THE MARKET'S GAINS BROADBASED BIG BOARDDOMINATED INDEXES WERE SOMEWHAT MORE BUOYANT THAN THE INDUSTRIAL AVERAGE BUT THE NASDAQ COMPOSITE INDEX TUMBLED FOR A SECOND STRAIGHT DAY LOSING 802 OR 105 IT PLUMMETED 933 ON WEDNESDAY THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 119 OR 026 TO 46362 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 061 OR 024 TO 25620 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX SKIDDED 300 OR 063 TO 46954 PRICES WERE WHIPPED BACK AND FORTH SEVERAL TIMES IN TRADING THAT SOME OBSERVERS SAID MIGHT HAVE BEEN TIED TO TODAY'S MONTHLY EXPIRATION OF INDEX OPTIONS A BUY PROGRAM CARRIED STOCKS OFF THEIR LOWS NEAR THE CLOSE ACCORDING TO BIRINYI ASSOCIATES THERE IS JUST A LOT OF UNCERTAINTY AND PESSIMISM BREWING SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH THAT MIGHT MAKE FOR SOME MORE WEAKNESS NEAR TERM HE SAID BUT EVENTUALLY THE MARKET WILL REGAIN ITS FOOTING ON CONTINUED SOLID NEWS ABOUT THE ECONOMY WHAT WE ARE SEEING IS A RATHER MESSY TRANSITION FROM A MARKET THAT IS LED BY DECLINING INTEREST RATES TO ONE THAT IS DRIVEN BY HIGHER PROFITS HE SAID FOR NOW THOUGH TECHNICAL INDICATORS DEPICT A WEAK MARKET SAID RICKY HARRINGTON AN ANALYST AT INTERSTATE/JOHNSON LANE EVEN AS THE INDUSTRIAL AVERAGE SOARED EARLY THIS WEEK HE NOTED THAT THE LEADERSHIP REMAINED NARROWLY BASED AND THE NASDAQ STOCK MARKET LOST GROUND CHEVRON DROPPED 4 TO 89 AFTER PENNZOIL SOLD AN 82 MILLIONSHARE STAKE IN THE SAN FRANCISCO COMPANY PENNZOIL NOW HOLDS ABOUT NINE MILLION CHEVRON SHARES REPRESENTING A 28 INTEREST IN THE COMMON PENNZOIL ADDED 5/8 TO 58 1/8 IT SOLD THE CHEVRON STOCK AT 89 AMERICAN DEPOSITARY RECEIPTS OF LM ERICSSON TUMBLED 7 7/8 TO 42 5/8 ON THE NASDAQ NATIONAL MARKET EVEN THOUGH THE SWEDISH COMMUNICATIONS COMPANY SAID ITS PRETAX PROFIT ROSE TO 230 MILLION IN THE FIRST NINE MONTHS FROM 15 MILLION IN THE YEARAGO PERIOD ANALYSTS WERE SAID TO BE CONCERNED THAT ERICSSON'S RESULTS WERE WEAKENING IN THE FOURTHQUARTER SHARES OF OTHER COMPANIES THAT MAKE TELECOMMUNICATIONS PARTS ALSO TUMBLED MOTOROLA WAS OFF 4 1/8 TO 95 5/8 AND DSC COMMUNICATIONS DROPPED 4 TO 58 ON NASDAQ HORSHAM LOST 7/8 TO 14 1/4 WHILE AMERICAN BARRICK DROPPED 1 5/8 TO 27 5/8 HORSHAM A CANADIAN GASOLINESTATION COMPANY SAID IT SOLD 550 MILLION IN DEBENTURES THAT ARE CONVERTIBLE INTO AMERICAN BARRICK STOCK THE DEBT WILL PAY INTEREST AT A RATE INDEXED TO THE PRICE OF AMERICAN BARRICK SHARES HORSHAM HAS A CONTROLLING INTEREST IN THE CANADIAN GOLD MINING CONCERN CAESARS WORLD RALLIED 2 7/8 TO 47 7/8 AFTER THE LOS ANGELES HOTEL AND CASINO CONCERN SAID ITS EARNINGS JUMPED TO 114 A SHARE IN ITS FIRSTQUARTER A YEAR EARLIER IT HAD A PROFIT OF JUST 62 CENTS A SHARE PLUM CREEK TIMBER SKIDDED 5 3/8 TO 71 THE FOREST PRODUCTS COMPANY SAID IT DIDN'T KNOW OF ANY REASON FOR THE SELLOFF OTHER STOCKS IN THAT INDUSTRY POSTED MORE MODEST LOSSES SHARES OF ARTAUCTION HOUSE SOTHEBY'S HOLDINGS HIT A 52WEEK HIGH OF 15 3/8 UP 7/8 IN RECENT WEEKS SOTHEBY'S SHARES HAVE BEEN MOVING HIGHER ON IMPROVED SALES OF IMPRESSIONIST AND FINE ART AND ON RECORD JEWELRY SALES XTRA ADDED 2 1/8 TO 43 1/4 THE TRANSPORTATION COMPANY REPORTED QUARTERLY EARNINGS OF 68 CENTS A SHARE BEFORE ONETIME CHARGES COMPARED WITH NET INCOME OF 53 CENTS A YEAR EARLIER THE JUMP IN XTRA SHARES HELPED THE DOW JONES TRANSPORTATION AVERAGE GAIN 107 OR 006 TO 173306 SEPARATELY THE RECENTLY PUMMELED DOW JONES UTILITIES AVERAGE INCHED UP 013 OR 006 TO 22515 BOEING LOST 1 5/8 TO 39 1/8 IT SURGED 3 1/8 WEDNESDAY AHEAD OF NEWS THAT THE SEATTLE COMPANY RECEIVED A 25 BILLION AIRCRAFT ORDER FROM SOUTHWEST AIRLINES SHARES OF THE DALLAS AIRLINE ADDED 1/8 TO 33 5/8 AFTER EASING 3/8 WEDNESDAY GENERAL MOTORS CLIMBED 7/8 TO 54 5/8 FORD MOTOR ROSE 5/8 TO 62 1/2 AND CHRYSLER WAS UNCHANGED AT 55 3/8 GM SAID IT CANCELED PLANS TO SELL ITS ALLISON TRANSMISSION UNIT THE JUSTICE DEPARTMENT HAD FILED A LAWSUIT TO BLOCK THE TRANSACTION 9311190069 931119 PEPPERAND SALT BUT SURGERY AND LIPOSUCTION RICE ARROZ BY ANOTHER NAME 9311190068 931119 BUSINESS BRIEF TRAVELERS CORP BUILDINGS ARE SOLD TO FUND SET UP BY FINANCIER SOROS TRAVELERS CORP SAID IT SOLD SIX OFFICE AND TWO APARTMENT BUILDINGS TO AN INVESTMENT FUND SET UP BY FINANCIER GEORGE SOROS FOR 127 MILLION ITS SECOND SALE OF FORECLOSED PROPERTY TO THE SOROS FUND MR SOROS'S QUANTUM REALTY FUND WHICH WAS FORMED EARLIER THIS YEAR TO INVEST IN DISTRESSED REAL ESTATE BOUGHT A 634 MILLION PORTFOLIO FROM TRAVELERS IN SEPTEMBER ITS NEWLY PURCHASED PORTFOLIO CONTAINS BUILDINGS IN FLORIDA VIRGINIA TENNESSEE AND COLORADO TRAVELERS OF HARTFORD CONN DIDN'T DISCLOSE THE ORIGINAL VALUE OF THE PROPERTIES OR WHETHER IT WOULD TAKE A LOSS ON THE SALE EARLIER THIS WEEK THE COMPANY SAID IT SOLD 10 OFFICE BUILDINGS AND AN APARTMENT COMPLEX TO CHICAGO INVESTOR SAM ZELL FOR 256 MILLION 9311190067 931119 IACOCCA AGAIN SELLS SUBSTANTIAL STAKE OF CHRYSLER STOCK BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORMER CHRYSLER CORP CHAIRMAN LEE A IACOCCA SOLD ANOTHER BIG CHUNK OF HIS HOLDING OF THE AUTO MAKER'S SHARES FOR 31 MILLION MR IACOCCA WASN'T ALONE FOUR OTHER CHRYSLER EXECUTIVES AND ONE FORMER EXECUTIVE SOLD SUBSTANTIAL PORTIONS OF THEIR HOLDINGS IN OCTOBER ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS SUPPLIED BY CDA/INVESTNET OF FORT LAUDERDALE FLA AMONG THEM WAS MR IACOCCA'S SUCCESSOR AS CHAIRMAN ROBERT J EATON WHO EXERCISED OPTIONS ON 58137 SHARES AND SOLD 38137 SHARES LAST WEEK SEPARATE FILINGS WITH THE SEC SHOWED THAT FOUR OTHER CHRYSLER EXECUTIVES HAD SOLD 85 MILLION IN STOCK IN OCTOBER A CHRYSLER SPOKESMAN NOTED THAT MR EATON ACTUALLY INCREASED HIS CHRYSLER HOLDINGS AND SAID THAT MOST OF THE EXECUTIVES WERE SIMPLY EXERCISING OPTIONS AND MAINTAINED SUBSTANTIAL HOLDINGS OF THE COMPANY'S STOCK HOWEVER MR IACOCCA WHO STEPPED DOWN AS A DIRECTOR IN SEPTEMBER AND JOHN B DAMOOSE WHO RESIGNED FROM HIS POSITION AS VICE PRESIDENT OF MARKETING LAST MONTH SUBSTANTIALLY REDUCED THEIR CHRYSLER HOLDINGS BETWEEN OCT 19 AND OCT 22 WHEN CHRYSLER STOCK WAS TRADING AT ABOUT 53 MR IACOCCA EXERCISED OPTIONS TO BUY 321840 SHARES AND THEN SOLD THEM FOR A PROFIT OF 142 MILLION HE ALSO SOLD AN ADDITIONAL 101208 SHARES FOR 53 MILLION AND EXERCISED STOCKAPPRECIATION RIGHTS ON 300000 SHARES NETTING 115 MILLION AND SEC RECORDS SHOW HE GAVE AWAY 100000 SHARES VALUED AT ALMOST 54 MILLION IN AUGUST MR IACOCCA SAID HE PLANNED TO SELL 12 MILLION SHARES THAT AT PRICES AT THE TIME WOULD HAVE GIVEN HIM 53 MILLION ACCORDING TO HIS LATEST FILING MR IACOCCA STILL HOLDS 515000 SHARES DOWN FROM 29 MILLION SHARES IN APRIL CHRYSLER SHARES HAVE SOARED THIS YEAR AS THE COMPANY HAS REPORTED RECORD EARNINGS ON THE STRENGTH OF NEW PRODUCTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY CHRYSLER SHARES CLOSED UNCHANGED AT 55375 THE LATEST SEC FILINGS SHOW MR DAMOOSE EXERCISED OPTIONS TO BUY 49710 SHARES AND SOLD AN ADDED AMOUNT OF ROUGHLY 4000 SHARES TO NET 21 MILLION IN THE TRADING PERIOD FRANCOIS J CASTAING CHRYSLER'S CHIEF ENGINEER EXERCISED OPTIONS TO BUY 25000 SHARES AND SOLD 25000 SHARES MAKING A PROFIT OF 820000 THEODOR R CUNNINGHAM EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING NETTED MORE THAN 13 MILLION BY EXERCISING OPTIONS TO BUY 11800 SHARES AND SELLING MORE THAN 28000 SHARES THOMAS C GALE VICE PRESIDENT FOR DESIGN EXERCISED OPTIONS TO BUY 10500 SHARES AND SOLD 30026 SHARES NETTING 13 MILLION 9311190066 931119 BUSINESS BRIEF COMSTOCK RESOURCES INC CONCERN EXPECTS ACQUISITION TO DOUBLE PERSHARE PROFIT COMSTOCK RESOURCES INC SAID IT EXPECTS ITS 1994 EARNINGS PER SHARE TO MORE THAN DOUBLE BECAUSE OF ITS ACQUISITION THIS WEEK OF STANFORD OFFSHORE ENERGY INC M JAY ALLISON PRESIDENT AND CHIEF EXECUTIVE SAID THE COMPANY'S NET INCOME FOR 1994 WILL INCREASE TO BETWEEN 40 CENTS AND 50 CENTS A SHARE THAT'S BELOW SOME ANALYSTS' ESTIMATES OF 45 CENTS TO 58 CENTS FOR THE FIRST NINE MONTHS OF 1993 COMSTOCK HAD NET INCOME OF 661990 OR 6 CENTS A SHARE WHICH WILL BE RESTATED TO REFLECT THE ACQUISITION THE COMPANY THEN EXPECTS TO REPORT 1993 NET INCOME OF ABOUT 20 CENTS A SHARE REVENUE FOR 1993 IS EXPECTED TO BE ABOUT 105 MILLION FOR 1994 MR ALLISON SAID HE SEES REVENUE REACHING 22 MILLION TO 23 MILLION COMSTOCK ALSO SAID IT ESTABLISHED A 10 MILLION REVOLVING CREDIT LINE WITH NATIONAL BANK OF DETROIT AND BANK ONE MR ALLISON SAID COMSTOCK USED 6 MILLION OF THAT FOR EARLY RETIREMENT OF A TERM LOAN WITH CHEMICAL BANK AND WILL USE THE REMAINING 4 MILLION TO ACQUIRE OIL AND GAS PROPERTIES 9311190065 931119 WHO'S NEWS CORPORATE TURNAROUND ARTIST SIGOLOFF NOMINATED TO LEAD CALIFORNIA SCHOOLS BY THOMAS R KING AND RHONDA L RUNDLE STAFF REPORTERS OF THE WALL STREET JOURNAL SANFORD C SIGOLOFF THE CORPORATE TURNAROUND ARTIST RECOGNIZED FOR HIS ABILITY TO TAKE TOUGH ACTION IN A CRISIS WAS NOMINATED BY CALIFORNIA GOV PETE WILSON TO FILL A VACANCY AS THE STATE'S SCHOOLS SUPERINTENDENT THE NOMINATION OF MR SIGOLOFF WHO WAS NICKNAMED MING THE MERCILESS BECAUSE OF HIS COSTCUTTING TACTICS AT SEVERAL BIG CORPORATIONS IN THE 1980S NOW FACES A VOTE IN THE STATE LEGISLATURE BUT EVEN IF HE IS CONFIRMED IT REMAINS TO BE SEEN JUST HOW MUCH HE'LL BE ABLE TO ACCOMPLISH HE SAID HE WILL SERVE ONLY FOR A YEAR AND WON'T SEEK A FULL TERM WHEN THE APPOINTMENT EXPIRES NEXT NOVEMBER GOV WILSON NONETHELESS INTRODUCED MR SIGOLOFF 63 YEARS OLD AS THE IDEAL LEADER FOR THE TROUBLED SCHOOL SYSTEM THE GOVERNOR DECLARED THAT THE NOMINATION MARKED THE CONTINUATION OF HIS EFFORTS TO BRING AN END TO THE FIERCE BATTLES OVER EDUCATION HE HAS HAD WITH THE LEGISLATURE AND MOVE FORWARD WITH EDUCATION REFORM SANDY HAS IMPROVED THE MANAGEMENT OF SOME OF THE LARGEST COMPANIES IN AMERICA BY TIGHTENING FISCAL CONTROLS IMPROVING WORKERMANAGEMENT RELATIONS AND ABOVE ALL SERVING THE CUSTOMER GOV WILSON SAID NOW HE HAS A NEW CUSTOMER THE SCHOOLCHILDREN OF CALIFORNIA IF CONFIRMED GOV WILSON SAID MR SIGOLOFF WILL WORK WITH SCHOOL DISTRICTS AROUND THE STATE TO HELP THEM GET THE MOST OUT OF THEIR EDUCATION DOLLAR THE DEPARTMENT OF EDUCATION OVERSEES 245 BILLION THAT THE STATE SPENDS ON EDUCATION EVERY YEAR AND HAS NEARLY 2500 EMPLOYEES MR SIGOLOFF SAID HE WOULD TAKE A ONEYEAR LEAVE OF ABSENCE FROM HIS CONSULTING BUSINESS AND HOPES TO LEAVE BEHIND AN AGENDA FOR CHANGE THAT A SUCCESSOR COULD FOLLOW I'D LIKE TO MAKE A FEW WAVES THAT ARE CONSTRUCTIVE HE SAID THE SCHOOLS JOB PAYS 102000 A YEAR THE PRESIDENT OF THE CALIFORNIA SCHOOL BOARDS ASSOCIATION CHARITY WEBB QUESTIONED MR SIGOLOFF'S LACK OF EDUCATION EXPERIENCE WE DO HOPE HE'S A FAST LEARNER SHE SAID MR SIGOLOFF IS BEST KNOWN FOR HIS 6 1/2YEAR STINT AT WICKES COS A BIG RETAILING AND MANUFACTURING CONCERN THAT HE TOOK INTO BANKRUPTCYLAW PROCEEDINGS IN 1982 IT EMERGED AS A MUCH SMALLER COMPANY THREE YEARS LATER AND HAS SHRUNK EVEN MORE SINCE ITS ACQUISITION IN 1988 BY AN INVESTMENT PARTNERSHIP MR SIGOLOFF WAS NICKNAMED MING THE MERCILESS AFTER THE EVIL RULER IN THE FLASH GORDON STORIES IT'S A NICKNAME HE RELISHES AS IT UNDERSCORES HIS IMAGE AS A TOUGHMINDED CORPORATE DOCTOR WHO DOESN'T HESITATE TO AMPUTATE THE SICKEST PARTS OF A PATIENT TRAINED AS A PHYSICIST AND CHEMIST THE EXECUTIVE HAS GENERALLY EARNED HIGHER MARKS AS A CRISIS MANAGER THAN AS AN OPERATIONAL CHIEF TOWARD THE END OF HIS DAYS AT WICKES SOME OUTSIDE DIRECTORS QUESTIONED HIS STEWARDSHIP AND TRIED TO OUST HIM AFTER WICKES WAS SOLD IN 1988 MR SIGOLOFF'S NEXT PATIENT WAS LJ HOOKER CORP THE US RETAILING SUBSIDIARY OF AUSTRALIA'S HOOKER CORP AFTER TAKING THE COMPANY INTO BANKRUPTCY AND SELLING OFF ITS VARIOUS PIECES HE LEFT THE COMPANY SINCE THEN HE HAS WORKED AS A CONSULTANT TO TROUBLED COMPANIES FROM AN OFFICE IN SANTA MONICA CALIF UPSTAIRS FROM HIS FORMER WICKES QUARTERS THE SCHOOLS CHIEF POST HAS BEEN VACANT SINCE WILLIAM HONIG WAS CONVICTED OF FELONY CONFLICTOFINTEREST CHARGES IN JANUARY FOR USING HIS POSITION TO HELP ADVANCE THE INTERESTS OF HIS WIFE'S EDUCATION PROJECT THE STATE LEGISLATURE REJECTED A PREVIOUS NOMINEE STATE SEN MARIAN BERGESON IN PART BECAUSE SHE WAS A REPUBLICAN AS IS MR SIGOLOFF 9311190064 931119 BUSINESS BRIEF NORD RESOURCES CORP FIRM SELLS 50 STAKE IN UNIT TO CONSOLIDATED RUTILE LTD NORD RESOURCES CORP SAID IT SOLD A 50 INTEREST IN SIERRA RUTILE LTD A UNIT THAT MINES TITANIUM DIOXIDE OR RUTILE AND IS BASED IN SIERRA LEONE WEST AFRICA THE SALE WAS TO CONSOLIDATED RUTILE LTD OF BRISBANE AUSTRALIA FOR ABOUT 55 MILLION NORD ON JUNE 28 ANNOUNCED AN AGREEMENT IN PRINCIPLE FOR THE SALE THE COMPANY SAID IN DAYTON OHIO THAT THE TWO CONCERNS HAVE CREATED A NEW COMPANY SIERRA RUTILE HOLDINGS LTD IN WHICH BOTH HOLD A 50 STAKE AND WHICH IN TURN HOLDS 100 OF SIERRA RUTILE LTD NORD RESOURCES SAID IT WILL USE PART OF THE PROCEEDS OF THE SALE TO REDEEM ITS 20 MILLION DEBENTURE WITH CONSOLIDATED RUTILE AND TO REPAY SUBSTANTIALLY ALL OF ITS DOMESTIC BANK DEBT NORD IS A PRODUCER OF NATURAL RUTILE KAOLIN AND PERLITE AND OWNS A MAJOR INTEREST IN NORD PACIFIC LTD AN EXPLORATION CONCERN 9311190063 931119 BUSINESS BRIEF SOUTHWESTERN BELL CORP THREE CELLULAR PROPERTIES TO BE BOUGHT IN NEW YORK SOUTHWESTERN BELL CORP SAN ANTONIO TEXAS SAID IT AGREED TO BUY THREE CELLULAR PROPERTIES IN CENTRAL NEW YORK STATE A MOVE THAT EXPANDS THE BABY BELL'S PRESENCE ON THE EAST COAST THE ACQUIRED PROPERTIES HAVE LICENSES TO SELL CELLULAR SERVICE TO 13 MILLION POTENTIAL CUSTOMERS TERMS OF THE ACQUISITIONS WEREN'T DISCLOSED HOWEVER HERSCHEL SHOSTECK A WIRELESSINDUSTRY ANALYST ESTIMATES THAT THE PRICE FOR ACQUIRING 13 MILLION POTENTIAL CELLULAR CUSTOMERS COULD RANGE FROM 150 MILLION TO 250 MILLION SOUTHWESTERN BELL SAID IT WILL ACQUIRE CELLULAR PROPERTIES IN SYRACUSE AND UTICAROME FROM SYRACUSE TELEPHONE CO AND UTICA TELEPHONE COS RESPECTIVELY BOTH COMPANIES ARE OWNED BY PARTNERSHIPS HEADED BY FLORIDA BUSINESSMAN KENNETH HOROWITZ THE ITHACACORTLANDAUBURN AREA IS BEING ACQUIRED FROM FINGER LAKES TELEPHONE CO IN WHICH SYRACUSE TELEPHONE IS A SHAREHOLDER 9311190062 931119 BUSINESS BRIEF SEARS ROEBUCK & CO ODDLOT HOLDERS ARE GIVEN CHANCE TO SELL OR BUY STOCK SEARS ROEBUCK & CO SAID IT IS OFFERING HOLDERS WITH FEWER THAN 100 COMMON SHARES THE OPPORTUNITY TO SELL THEIR SEARS SHARES OR TO BUY MORE OF ITS COMMON STOCK THE CHICAGO RETAILER SAID THE PROGRAM IS IN RESPONSE TO ODDLOT HOLDERS WHO HAVE EXPRESSED CONCERN ABOUT THE COST AND INCONVENIENCE OF SELLING THEIR SHARES IN THE OPEN MARKET THE PROGRAM ALSO OFFERS A COSTEFFECTIVE WAY FOR THESE HOLDERS TO INCREASE THEIR HOLDINGS TO 100 SHARES SEARS SAID IT ADDED THE PROGRAM WILL REDUCE ADMINISTRATIVE COSTS SEARS SAID ABOUT 205000 COMMON SHAREHOLDERS REPRESENTING ABOUT 42 MILLION SHARES ARE ELIGIBLE TO PARTICIPATE IN THE PROGRAM THE ODDLOT PROGRAM EXPIRES DEC 30 UNLESS EXTENDED 9311190061 931119 CREDIT RATINGS GREAT ATLANTIC & PACIFIC TEA CO MONTVALE NJ MOODY'S INVESTORS SERVICE INC LOWERED A&P'S SENIOR LONGTERM DEBT TO BAA3 FROM BAA2 FOLLOWING A REVIEW BEGUN LAST MONTH ABOUT 300 MILLION OF DEBT IS AFFECTED MOODY'S SAID THE DOWNGRADE OF THE GROCERY RETAILER WAS PROMPTED BY UNEXPECTEDLY POOR RESULTS FROM MOVES TO OPEN LARGER STORES AND CLOSE SMALLER UNPROFITABLE ONES MOODY'S SAID THAT WHILE A&P'S CORE BUSINESSES IN METROPOLITAN NEW YORK PHILADELPHIA AND CANADA HAVE BEGUN TO SHOW SOME SALES AND EARNINGS GAINS THEY HAVEN'T BEEN AS GREAT OR AS RAPID AS ANTICIPATED MOODY'S SAID THE DROP IN OPERATING PROFIT MARGINS APPEARS UNLIKELY TO IMPROVE IN THE INTERMEDIATE TERM A&P IS 52OWNED BY TENGELMANN GROUP OF GERMANY 9311190060 931119 MARKETING BRIEF TIME WARNER INC ADELPHIA COMMUNICATIONS TO PARTICIPATE IN VENTURE TIME WARNER INC AND ADELPHIA COMMUNICATIONS CORP WILL MERGE THE SUPPORT OPERATIONS OF THEIR COMPETITIVE TELEPHONEACCESS BUSINESSES INTO A JOINT VENTURE PROVIDING SERVICES FOR BOTH TIME WARNERHYPERION COMMUNICATIONS MARKS ANOTHER MOVE BY CABLE COMPANIES INTO THE GROWING BUSINESS OF COMPETITIVE TELEPHONE ACCESS SUCH SERVICES CONNECT MAJOR BUSINESSES WITH THEIR LONGDISTANCE COMPANIES TIME WARNER COMMUNICATIONS IS THE NEW TELECOMMUNICATIONS ARM OF TIME WARNER HYPERION TELECOMMUNICATIONS INC IS THE ALTERNATIVEACCESS UNIT OF ADELPHIA COMMUNICATIONS TIME WARNER IS BASED IN NEW YORK ADELPHIA IN COUDERSPORT PA TIME WARNER WILL OWN 75 OF THE SERVICE AND HYPERION WILL OWN THE REMAINDER THE VENTURE WILL PROVIDE SUCH SERVICES AS BILLING ACCOUNTING CONTRACT NEGOTIATIONS AND SALES IT ALSO WILL OFFER THE SERVICES TO OTHER CABLERELATED ALTERNATIVEACCESS PROVIDERS 9311190059 931119 WHO'S NEWS KAUFMAN & BROAD HOME CORP KAUFMAN & BROAD HOME CORP LOS ANGELES MARC CHASMAN 30 YEARS OLD WAS NAMED VICE PRESIDENT TREASURER AT THIS HOME BUILDER MR CHASMAN JOINED KAUFMAN & BROAD IN JULY 1990 AND HAS BEEN TREASURER SINCE NOVEMBER 1991 9311190058 931119 CREDIT MARKETS YIELD ON 30YEAR TREASURYS JUMPS TO 624 AS STRONGER ECONOMIC FIGURES PUSH DOWN PRICES BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK NEWS OF A STRONGER ECONOMY AND WORRIES ABOUT AN UPCOMING FLOOD OF NEW GOVERNMENT SECURITIES BOOSTED YIELDS ON TREASURY SECURITIES TO THEIR HIGHEST LEVELS IN THREE MONTHS THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND ROSE TO 624 FROM 617 ON WEDNESDAY THE HIGHEST SINCE MIDAUGUST ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF YIELD DROPPED 7/8 POINT OR 875 FOR A BOND WITH 1000 FACE VALUE TO 100 1/32 PRICES OF OTHER TREASURY MATURITIES ALSO WERE BATTERED THE 10YEAR NOTE DROPPED MORE THAN 5/8 POINT TO 100 6/32 WHILE ITS YIELD ROSE TO 571 FROM 562 TREASURY NOTES AND BONDS RAN INTO TROUBLE RIGHT OUT OF THE CHUTE YESTERDAY WHEN THE LABOR DEPARTMENT REPORTED THAT JOBLESS CLAIMS FELL 20000 TO 338000 DURING THE WEEK ENDED NOV 13 THE DECLINE WELL EXCEEDED THE 6000 DROP THAT MOST ECONOMISTS HAD EXPECTED THAT WAS FOLLOWED AT MIDMORNING BY MORE EVIDENCE OF STRENGTH IN THE MANUFACTURING SECTOR THE FEDERAL RESERVE BANK OF PHILADELPHIA REPORTED THAT ITS INDEX OF LOCAL BUSINESS ACTIVITY JUMPED TO 224 FOR NOVEMBER FROM 151 IN OCTOBER BOND INVESTORS OFTEN REACT NEGATIVELY TO NEWS OF A STRENGTHENING ECONOMY BECAUSE THEY FEAR FASTER GROWTH WILL LEAD TO INFLATION WHICH REDUCES THE VALUE OF FIXEDRATE INVESTMENTS OVER THE LAST FEW DAYS THE MARKET WITHSTOOD SEVERAL REPORTS DEPICTING AN IMPROVED RATE OF ECONOMIC GROWTH BUT TRADERS SAID ANOTHER FACTOR WAS AT WORK YESTERDAY NAMELY SUPPLY THE TREASURY DEPARTMENT IS SLATED TO SELL A RECORD 17 BILLION OF TWOYEAR NOTES ON MONDAY AND 11 BILLION OF FIVEYEAR NOTES THE NEXT DAY THESE MONTHLY AUCTIONS USUALLY OCCUR ON TUESDAY AND WEDNESDAY BUT HAVE BEEN MOVED UP BECAUSE US TREASURY MARKETS WILL CLOSE EARLY WEDNESDAY IN ADVANCE OF THURSDAY'S THANKSGIVING HOLIDAY THE MARKETS WILL REOPEN FRIDAY FOR AN ABBREVIATED TRADING SESSION LATE YESTERDAY THE TWOYEAR NOTE TO BE AUCTIONED NEXT WEEK YIELDED 420 IN WHENISSUED TRADING COMPARED WITH 413 ON WEDNESDAY THE FIVEYEAR NOTE TO BE AUCTIONED NEXT WEEK YIELDED 510 IN WHENISSUED TRADING COMPARED WITH 502 ON WEDNESDAY ATTENTION IN THE CORPORATE BOND MARKET WAS HELD BY A 135 BILLION OFFERING OF GLOBAL NOTES FROM KOREA ELECTRIC POWER DESPITE WORRIES ABOUT POLITICAL INSTABILITY UNDERWRITERS SEEMED ABLE TO DRUM UP STRONG INTEREST IN THE ISSUE IN THE US TREASURY MARKET CONCERNS ABOUT SIGNS OF ECONOMIC STRENGTH PUT THOUGHTS OF THE NORTH AMERICAN FREE TRADE AGREEMENT ON THE BACK BURNER WEDNESDAY NIGHT'S VOTE BY THE HOUSE OF REPRESENTATIVES ON THE TRADE AGREEMENT WAS ANTICLIMACTIC FOR THE US BOND MARKET YESTERDAY MOST TRADERS AND INVESTORS HAD EXPECTED NAFTA TO PASS BUT FEW HAD PLACED BETS EITHER WAY NAFTA HAD NO IMPACT ON TRADING SAID JOSEPH LIRO CHIEF ECONOMIST AT S G WARBURG TRADERS TRIED TO PUSH YIELDS HIGHER YESTERDAY AFTERNOON BECAUSE OF UNCERTAINTY ABOUT WHETHER INVESTORS WOULD BE SATISFIED WITH YIELD LEVELS LATELY MOST HAVE BEEN SITTING ON THE SIDELINES THE STRATEGY HAS BEEN TO PLAY DEFENSE LATE IN THE GAMEKILL THE CLOCK PARTICULARILY WHEN THE ECONOMIC ENVIRONMENT IS HEATING UP AND WE ARE UNCERTAIN AS TO HOW HOT IT'S GOING TO GET AND HOW LONG IT'S GOING TO STAY HOT SAID MR LIRO YESTERDAY'S TRADING WAS A GOOD EXAMPLE OF A MARKET DOMINATED BY DAYTRADERS WHO HAVE BEEN INCREASINGLY QUICK TO GET OUT OF POSITIONS THERE'S NOT A WHOLE LOT OF COURAGE AND CONVICTION OUT THERE SAID MR LIRO ALSO AFFECTING SENTIMENTS ARE WORRIES ABOUT A FLOOD OF NEW SUPPLY WHEN NEW TREASURY SECURITIES ARE SOLD THE SUPPLY CAN HELP DEPRESS PRICES IN A WEAK MARKET IT FEELS LIKE THE MARKET IS NOT IN THE MOOD TO TAKE DOWN THE TWOYEARS AND FIVEYEARS SAID MR LIRO THE PROBLEM ISN'T SUPPLY BUT THE IDEA OF HAVING TO UNDERWRITE DEBT WITH THE ECONOMY APPEARING TO PICK UP STEAM HE SAID IT'S THE NOTION OF BIDDING ON THESE AUCTIONS IN AN ENVIRONMENT OF 4 GDP GROWTH HE SAID ACCORDING TO A REPORT RELEASED YESTERDAY BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SOME WORRIES MAY BE MISPLACED IT PREDICTED THAT US SHORTTERM INTEREST RATES WILL RISE SIGNIFICANTLY OVER THE NEXT YEAR AS THE US ECONOMIC RECOVERY CONTINUES AND THE FEDERAL RESERVE TIGHTENS MONETARY POLICY BUT THE REPORT ALSO SAID THAT THE OECD EXPECTS CONTINUED WEAKNESS IN THE US LABOR MARKET AND INFLATION BELOW 3 NEXT YEAR GROWTH IN THE GDP IS EXPECTED TO HIT JUST 3 IN 1994 COMPARED WITH THE PREDICTED 275 RATE FOR THIS YEAR LOW INFLATION AND GDP GROWTH WOULD BE VERY GOOD NEWS FOR LONGTERM RATES IN THE NEXT YEAR LATE YESTERDAY THE FED REPORTED ITS WIDELY WATCHED M2 A MEASURE OF MONEY SUPPLY DROPPED 109 BILLION IN THE WEEK ENDED NOV 8 THAT PUTS M2 GROWTH RATE AT 13 COMPARED WITH THE FOURTHQUARTER BASE OF 1992 JUST WITHIN THE FED'S TARGET RANGE OF 1 TO 5 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 KOREA ELECTRIC POWER'S 135 BILLION GLOBAL NOTE OFFERING WAS THE HIGHLIGHT OF YESTERDAY'S MARKET WHICH SAW LITTLE OTHER ACTIVITY THERE WAS SLIGHTLY MORE THAN 18 BILLION OF DEBT ISSUED IN ADDITION TO 875 MILLION OF PERPETUAL PREFERRED STOCK SOLD BY MAXUS ENERGY KOREA ELECTRIC OR KEPCO PRICED ITS OFFERING EARLY IN THE DAY AT 98551 TO YIELD 6575 OR 090 PERCENTAGE POINT MORE THAN COMPARABLE TREASURYS OF THE KEPCO NOTES 60 WERE SOLD IN THE US WHILE 20 WERE SOLD IN EUROPE AND ANOTHER 20 IN ASIA ACCORDING TO BRADLEY JACK SYNDICATE MANAGER AT LEHMAN BROTHERS LEAD MANAGER OF THE OFFERING MOST OF THE INTEREST CAME FROM MONEYFUND MANAGERS FOLLOWED BY INSURANCE COMPANIES AND CORPORATE AND STATE PENSION FUNDS HE SAID POLITICAL CONSIDERATIONS AND THE FACT THAT IT WAS 10YEAR SINGLEARATED CORPORATE PAPER MADE THE DEAL A HARD SELL HE SAID IT WAS A HUGE SUCCESS TO BE ABLE TO GENERATE THIS AMOUNT OF INTEREST HE SAID ADDING THAT LEHMAN SOLD 1 BILLION OF THE NOTES OFFERED ONE MEXICAN ISSUER MOVED QUICKLY TO TAKE ADVANTAGE OF NAFTA'S PASSAGE PETROLEOS MEXICANOS A GOVERNMENTOWNED OIL COMPANY SOLD 250 MILLION OF NONCALLABLE 30YEAR BONDS WITH A COUPON OF 8 5/8 AT A PRICE OF 99872 TO YIELD 8637 220 PERCENTAGE POINTS ABOVE COMPARABLE TREASURYS THEY WERE SOLD IN THE PRIVATEPLACEMENT MARKET TO LARGE INSTITUTIONAL INVESTORS YIELD SPREADS OVER COMPARABLE TREASURYS OF OUTSTANDING PEMEX SECURITIES NARROWED BY AT LEAST 020 PERCENTAGE POINT A MARKET OFFICIAL SAID NARROWING SPREADS ARE A SIGN OF STRENGTHENING DEMAND RATED BA2 BY MOODY'S INVESTORS SERVICE THE ISSUE WILL BE PLACED THROUGH FIRMS LED BY GOLDMAN SACHS TRADING IN THE INVESTMENTGRADE BOND MARKET WAS LIGHT WITH SPREADS UNCHANGED TO SLIGHTLY TIGHTER TRADERS SAID PRICES FOLLOWED TREASURYS DOWN IN THE JUNKBOND MARKET TRADING WAS LIGHT WITH PRICES RISING ABOUT 1/4 POINT TIPHOOK FINANCIAL'S BONDS CONTINUED THEIR SLIDE AS INVESTORS WITH LITTLE INFORMATION ARE GETTING SPOOKED ONE TRADER SAID TIPHOOK PLC ITS LONDONBASED PARENT THAT LEASES SHIPPING CONTAINERS IS IN NEGOTIATIONS WITH BANKS ABOUT EXTENDING OR REFINANCING ITS DEBT THE COMPANY'S 10 3/4 COUPON GUARANTEED NOTES MATURING IN 2002 DROPPED THREE POINTS OR 30 FOR A BOND WITH 1000 FACE VALUE TO 60 THE YIELD ROSE TO 2076 FROM 197 MUNICIPAL BONDS FELL WITH TREASURYS AND CLOSED WITH LOSSES OF 1/8 TO 1/2 POINT IN LATE TRADING THE NEW YORK STATE POWER AUTHORITY'S 525 OF 2018 BONDS WERE 1/2 WEAKER AT 96 1/2 TO 97 YIELDING 548 IN NEWISSUE ACTIVITY A MORGAN STANLEY GROUP PRICED 4658 MILLION OF REFUNDING BONDS FOR THE BATTERY PARK CITY AUTHORITY NEW YORK INCLUDED IN THE PRICING ARE 3395 MILLION OF SERIES 1993A SENIOR REVENUE REFUNDING BONDS WHICH ARE PRICED TO YIELD FROM 480 IN 2001 TO 570 IN 2020 THE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE AUTHORITY'S 1263 MILLION OF SERIES 1993A JUNIOR REVENUE REFUNDING BONDS WERE PRICED TO YIELD 580 IN 2022 AND 570 IN 2023 MOODY'S AND S&P HAVE RATED THEM SINGLEA A GOLDMAN SACHS GROUP PRICED THE HOUSING NEW YORK CORP'S 2621 MILLION OF SERIES 1993 SENIOR REVENUE REFUNDING BONDS YIELDS RANGE FROM 495 IN 2002 TO 570 IN 2020 MOODY'S HAS RATED THE ISSUE SINGLEA1 AND S&P IS EXPECTED TO ASSIGN A DOUBLEA RATING PRICES OF CURRENT COUPON MORTGAGEBACKED SECURITIES MOVED DOWN IN SYMPATHY WITH TREASURY SECURITIES IN BUSY BUT LARGELY UNEVENTFUL TRADING IN THE ASSETBACKED MARKET DISCOVER PRICED ITS SECOND ISSUE OF THE WEEK AN 833 MILLION OFFERING OF FIVEYEAR CREDITCARD CERTIFICATES THE UNIT OF DEAN WITTER DISCOVER HAD BROUGHT A 10YEAR CREDITCARD OFFERING ON MONDAY THE YEAR'S SECOND THE 800 MILLION IN SENIOR CERTIFICATES IN THE DISCOVER OFFERING WERE PRICED WITH A COUPON OF 540 AT 99536 TO YIELD 557 ABOUT A HALFPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED FIVEYEAR NOTE THE 33 MILLION IN CLASS B SUBORDINATE CERTIFICATES WAS PRICED AT 575 AT 99628 TO YIELD 598 JUST UNDER 3/4 POINT SPREAD ABOVE TREASURYS LEAD UNDERWRITER ON THE ENTIRE ISSUE WAS DEAN WITTER REYNOLDS PART OF THE REASON INVESTORS MAY HAVE BEEN WILLING TO GOBBLE UP THE DISCOVER DEAL WAS THAT THEY HAVE A BETTER SENSE OF HOW MUCH AND WHAT KIND OF ASSETBACKED PAPER WILL BE OFFERED BY THE END OF THE YEAR SAID JEFFREY SALMON ASSETBACKED ANALYST AT JP MORGAN SECURITIES MOST OF THE UPCOMING CREDITCARD ISSUES WILL CARRY LONGER MATURITIES A TREND OF LATE IN THE ASSETBACKED MARKET IN SECONDARY MORTGAGE TRADING GINNIE MAE 6 1/2 FOR DECEMBER DELIVERY WERE DOWN 14/32 AT 99 FREDDIE MAC GOLD 6 1/2 WERE DOWN 14/32 AT 99 1/8 AND FANNIE MAE 6 1/2 WERE DOWN 14/32 AT 98 29/32 9311190057 931119 BUSINESS BRIEF BRITISH GAS PLC PETROLEUM CONCERN WIDENED NET LOSS IN THIRD QUARTER BRITISH GAS PLC LONDON SAID ON THURSDAY THAT THIRDQUARTER NET LOSS ON A COSTREPLACEMENT BASIS WIDENED TO 225 MILLION POUNDS 333 MILLION FROM A LOSS OF 190 MILLION POUNDS IN THE YEAREARLIER PERIOD IN A RELEASE BRITISH GAS CHAIRMAN ROBERT EVANS NOTED THAT THIRDQUARTER RESULTS SHOWED A MARKED DETERIORATION COMPARED WITH THE YEAREARLIER PERIOD HIGHER PROFITS FROM EXPLORATION AND PRODUCTION OVERSEAS GAS SUPPLY AND OTHER BUSINESS SEGMENTS WERE UNABLE TO OFFSET THE DECLINING PROFITABILITY OF THE UK GAS SUPPLY BUSINESS ARISING FROM THE REGULATORY SQUEEZE BRITISH GAS SAID THAT ITS SHARE OF THE FIRM CONTRACT MARKET HAS FALLEN TO 34 AND THAT THIS ALONG WITH OTHER REGULATORY PRESSURES ON VOLUMES AND PRICES HAS CAUSED OPERATING PROFITS IN THE UK GAS SUPPLY BUSINESS TO FALL BY ALMOST 30 IN THE YEAR TO DATE DESPITE COLDER WEATHER MR EVANS SAID THAT UNTIL THE GOVERNMENT COMES TO A DECISION ON COMPETITION IN THE UK GAS INDUSTRY IT WILL BECOME INCREASINGLY MORE DIFFICULT TO MAKE THE DECISIONS AND THE INVESTMENTS TO ENABLE THE COMPANY TO SUCCEED 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 9311190056 931119 THE QUEST FOR OFFICE SPACE IN WARSAW PROVES TO BE COSTLY COMPLICATED AFFAIR BY DANIEL MICHAELS STAFF REPORTER OF THE WALL STREET JOURNAL WARSAW POLAND'S CAPITAL MAY LACK THE CHARM AND CACHET OF PARIS OR LONDON BUT IT DOES SHARE AT LEAST ONE THING WITH THEM THE COST OF RENTING OFFICE SPACE THE FIRST THING WESTERNERS EXPERIENCE HERE IS STICKER SHOCK SAYS MARC BUSHALA MARKETING AND LEASING DIRECTOR IN POLAND FOR CHICAGOBASED DEVELOPER GOLUB & CO SUCH RENTS ARE DIFFICULT FOR WESTERN CORPORATIONS TO JUSTIFY IN COMPARISON TO OTHER EUROPEAN CAPITALS SAYS JAS LOZINSKI HEAD OF HENRY BUTCHER & CO'S POLISH BROKERAGE DEPARTMENT REFERRING TO WARSAW'S OFTEN DEFICIENT PUBLIC SERVICES OFFICE MARKETS IN NEARBY BUDAPEST AND PRAGUE WHERE THE FLOODGATES OPENED A COUPLE OF YEARS AGO NOW SHOW A SLIGHT OVERSUPPLY ACCORDING TO MR LOZINSKI BUT IN WARSAW HE SAYS THE MARKET FACES A GROSS UNDERSUPPLY OF TOPQUALITY OFFICE STOCK WITH PRICES HELD UP BY THE HEALTHY STATE OF PRESENT DEMAND LEVELS IT STILL SEEMS TO BE A SELLER'S MARKET SAYS TOM STADNIK AN ATTORNEY WHO HANDLES REALESTATE ISSUES FOR WEIL GOTSHAL & MANGES IN WARSAW THE RESULT ACCORDING TO MR LOZINSKI IS THAT COMMERCIALOFFICE SEEKERS ARE SEVERELY LIMITED TO A NUMBER OF UNSATISFACTORY CHOICES INVOLVING COMPROMISES ON SERVICES AND SPACE MADE EVEN LESS PALATABLE BY HIGH PRICES WARSAW A CITY ALMOST WIPED FROM THE MAP IN WORLD WAR II WAS REBUILT BY POLAND'S DISTINCTLY NONCOMMERCIAL COMMUNIST GOVERNMENT THE ASPECT OF THE CITY MOST OBVIOUS TO PEDESTRIANS IS A SEVERE LACK OF RETAIL SPACE THE DEARTH OF STOREFRONT SALES SPACE HAS FORCED WOULDBE RETAILERS AND DEVELOPERS TO UNDERTAKE EXTENSIVE CONSTRUCTION AND RENOVATION WORK AT STREET LEVEL THE TASK OF FINDING OR CREATING SPACE FOR COMMERCIAL OFFICES CAN BE JUST AS SLOW AND DIFFICULT WARSAW'S FIRST WAVE OF NEW DEVELOPMENT AFTER THE FALL OF COMMUNISM HAS BROUGHT A HOST OF MODERN CLASS A OFFICE BUILDINGS TO THE MARKET OVER THE PAST 18 MONTHS ROUGHLY 100000 SQUARE METERS OF MODERN OFFICE SPACE HAS BEEN QUICKLY SNAPPED UP AT RENTS AVERAGING ALMOST 50 PER METER AND ACCORDING TO MICHAEL Z CHYDZIK CHIEF EXECUTIVE OF PROPERTY SERVICE OF POLAND A LOCAL COMMERCIAL BROKERAGE AND REALESTATE CONSULTANCY FIRM DEMAND EXISTS FOR AT LEAST AN ADDITIONAL 60000 METERS OF NEW SPACE BY YEAR'S END DESPITE STRONG DEMAND NO NEW PROJECTS ARE DUE TO OPEN BEFORE THE END OF 1994 SIX NEW PROJECTS SHOULD BRING ANOTHER 150000 SQUARE METERS TO THE MARKET IN 1995 AND 1996 BUT BY THAT TIME UNMET DEMAND WILL PROBABLY HAVE OUTSTRIPPED SUPPLY ONCE AGAIN SO OFFICE SEEKERS SHUT OUT OF THE NEWBUILDING MARKET TURN TO WARSAW'S STOCK OF OLDER CLASS B BUILDINGS ERECTED AFTER WORLD WAR II FOR GOVERNMENT BUREAUS AND STATEOWNED BUSINESSES MANY OF THESE INSTITUTIONAL BLOCKS ARE BEING RENOVATED INSIDE FOR THE LOOK AND FEEL OF MODERN OFFICES BUT RENOVATED CLASS B BUILDINGS HAVE LIMITATIONS SAYS MAC RACZKIEWICZ PRESIDENT OF CHICAGOBASED EPSTEIN ENGINEERING EXPORT LTD'S POLISH OPERATIONS DIFFICULTIES COMMONLY ENCOUNTERED BY RENOVATORS INCLUDE ANTIQUATED INFRASTRUCTURE AND SERVICES SUCH AS TELEPHONES ELEVATORS AND PARKING INCONVENIENT STRUCTURAL DESIGNS WITH LARGE COLUMNS AND MASONRY WALLS AND PROBLEMS IN ADDING AIR CONDITIONING AS A RESULT SAYS MR BUSHALA OF GOLUB & CO RENOVATION OFTEN BECOMES FAR COSTLIER THAN ANTICIPATED MOREOVER FOR RENOVATORS BUYING PROPERTY THE COMMUNIST LEGACY OF CONTESTED OR UNCLEAR OWNERSHIP CREATES HEADACHES AS DOES THE RESPONSIBILITY OF BECOMING A LANDLORD WITH NEGATIVES STACKED UP AGAINST THE RENOVATION OF OLD OFFICES MR CHYDZIK PREDICTS THAT 20 OF OFFICE DEMAND AT MOST WILL BE MET BY REFURBISHMENT FOR COMPANIES WITH MORE LIMITED REQUIREMENTS FOR SPACE AND INFRASTRUCTURE RESIDENTIAL APARTMENTS ARE A COMMONAND OFTEN SIMPLERSOLUTION TO THE OFFICE PROBLEM FREESTANDING HOUSES AND VILLAS HAVE ALSO BECOME PRIME TARGETS FOR OFFICE SPACE HOWEVER NOTES MR CHYDZIK THE TREND FOR DEEPPOCKETED CORPORATIONS TO SNAP UP PRIME RESIDENTIAL SPACE IN AN UNDERSUPPLIED APARTMENT MARKET IS INCREASING WARSAW'S HOUSING SHORTAGE AND DRIVING UP RESIDENTIAL RENTSPARTICULARLY FOR FOREIGNERS WHO LOOK TO LIVE IN TOPQUALITY APARTMENTS WORKING ON THE GROUND DOES HAVE THE ADVANTAGE OF PROVIDING OFFICE SEEKERS A BETTER SENSE OF VALUE IN THE OPTIONS AVAILABLE MR BUSHALA WARNS THAT IN JUDGING NONSTANDARD OFFICE FACILITIES WHERE MANY VARIABLES MUST BE CONSIDERED DIFFICULTIES ARISE IN COMPARING SPACES AND THERE ARE COMPARISON PROBLEMS EVEN WITH NEW BUILDINGS MR BUSHALA SAYS THAT DEVELOPERS USE DIFFERENT METHODS TO CALCULATE RATES SOME INCLUDE UTILITIES AND PUBLIC SPACE IN A QUOTED PRICE OTHERS DON'T SOME OFFER FACILITIES THAT ARE READY FOR IMMEDIATE OCCUPANCY AND USE SOME CHARGE FOR FITTING A PLACE OUT IF NONE OF THE OPTIONS AMONG EXISTING STOCK SUIT AN OFFICE SEEKER BUILDING FROM THE GROUND UP MAY BE THE ANSWER BUT THE SLOW PACE OF OFFICE DEVELOPMENT IN WARSAW TO DATE SUGGESTS THE CHALLENGES TO BE ENCOUNTERED MR RACZKIEWICZ OF EPSTEIN ENGINEERING WHICH HAS DEVELOPED 16 PROJECTS IN POLAND VALUED AT ROUGHLY 400 MILLION OVER 22 YEARS NOTES THAT BECAUSE OF POLAND'S SHIFT AWAY FROM A CENTRALLY ADMINISTERED COMMUNIST SYSTEM DIRECT GOVERNMENTAL CONTROL OVER THE DEVELOPMENT PROCESS HAS BEEN SEVERELY WEAKENED YOU MUST BE EXTREMELY PATIENT SAYS MR RACZKIEWICZ OFFERING A KEY TO SUCCESSFUL REALESTATE DEVELOPMENT IN POLAND 9311190055 931119 BUSINESS BRIEF WILLIS CORROON GROUP PLC NINEMONTH PRETAX NET ROSE BY 15 FEE REVENUE CITED ANGLOUS INSURANCE BROKER WILLIS CORROON GROUP PLC SAID PRETAX PROFIT IN THE NINE MONTHS ROSE 15 FROM A YEAR EARLIER TO 701 MILLION 1038 MILLION AS BROKERAGE AND FEE REVENUE GROWTH WAS ENCOURAGINGLY HIGHER IN THE LATEST THIRDQUARTER MARKET EXPECTATIONS WERE FOR PROFIT OF 66 MILLION TO 72 MILLION PRETAX PROFIT IN THE YEAREARLIER PERIOD WAS 609 MILLION THE COMPANY DOESN'T PAY A NINEMONTH DIVIDEND FEE REVENUE GREW 35 IN THE NINEMONTH PERIOD CONTROL OF OPERATING EXPENSES HAS BEEN MAINTAINED THE COMPANY SAID SO THAT THESE WERE UNCHANGED OVER THE PRIOR NINEMONTH PERIOD REVENUE GROWTH CONTINUED TO BENEFIT FROM HIGHER PREMIUM LEVELS SET BY WORLDWIDE REINSURERS AND BY UK DIRECT UNDERWRITERS FOR MOST CLASSES OF BUSINESS 9311190054 931119 BUSINESS BRIEF INFINITY BROADCASTING CORP COMPANY'S SHARES DROP 7 FOLLOWING NEWS OF STOCK SALE SHARES OF INFINITY BROADCASTING CORP TUMBLED MORE THAN 7 AFTER THE COMPANY SAID MAJOR SHAREHOLDERS PLAN TO SELL STOCK CURRENTLY VALUED AT ABOUT 140 MILLION THE SALE WOULD BE THE FIRST BY INSIDERS SINCE THE RADIO BROADCASTING COMPANY WENT PUBLIC IN LATE 1992 THE SECONDARY OFFERING COVERS 5550000 CLASS A COMMON SHARES ADJUSTED FOR A 3FOR2 STOCK SPLIT TO BE PAID TODAY ON THE NASDAQ STOCK MARKET INFINITY SHARES CLOSED AT 4350 A SHARE DOWN 350 SOME 48 MILLION SHARES WILL BE SOLD BY MERCHANT BANKING PARTNERSHIPS OF LEHMAN BROTHERS WHICH IN 1988 FINANCED A 100 MILLION BRIDGE LOAN AS PART OF A 315 MILLION MANAGEMENTLED BUYOUT OF THE COMPANY LEHMAN BROTHERS IS A UNIT OF AMERICAN EXPRESS CO OTHER SELLING SHAREHOLDERS INCLUDE COCHAIRMEN GERALD CARRUS AND MICHAEL A WIENER EACH SELLING 150000 SHARES AND MEL KARMAZIN PRESIDENT AND CHIEF EXECUTIVE OFFICER SELLING 450000 SHARES INFINITY BASED IN NEW YORK HAS RADIO STATIONS IN SEVERAL MARKETS INCLUDING BOSTON NEW YORK CHICAGO AND ATLANTA 9311190053 931119 WHAT'S NEWS WORLDWIDE CLINTON HAILED NAFTA'S PASSAGE AS A STEP TOWARD ENDING GLOBAL TRADE BARRIERS THE PRESIDENT SAID THE TRADE PACT WITH MEXICO AND CANADA WILL USHER IN A GREAT NEW ERA AND HELP HIM FIGHT FOR OPEN MARKETS SPEAKING BEFORE HE DEPARTED FOR THE ASIAPACIFIC ECONOMIC COOPERATION FORUM IN SEATTLE CLINTON CALLED FOR EFFORTS BY LABOR AND MANAGEMENT TO MAKE SURE THE ACCORD BENEFITS ALL THE WORKING PEOPLE OF OUR COUNTRY HE ALSO PRAISED NAFTA OPPONENTS FOR FIGHTING FOR WHAT THEY BELIEVED IN SOME UNIONS AND ENVIRONMENTALISTS DENOUNCED CLINTON'S VOTEGETTING TACTICS HIS LASTMINUTE DEALMAKING HAS PROMPTED PEROT'S ORGANIZATION TO REVIVE ITS CAMPAIGN FOR GOVERNMENT REFORM HOSOKAWA'S POLITICAL REFORM PLAN CLEARED ITS BIGGEST HURDLE WINNING APPROVAL FROM THE LOWER HOUSE OF JAPAN'S PARLIAMENT THE BILLS NOW GO TO THE GOVERNMENTCONTROLLED UPPER HOUSE WHICH IS EXPECTED TO ENACT THEM BY YEAR'S END UKRAINE'S PARLIAMENT DEFIANTLY SET TOUGH CONDITIONS THAT COULD DELAY THE DISMANTLING OF ITS NUCLEAR WEAPONS WHILE LAWMAKERS ADOPTED THE START 1 NUCLEAR ARMS REDUCTION TREATY THEY VOTED TO RETAIN A LARGE PORTION OF THE WEAPONS UNTIL UKRAINE RECEIVES COMPENSATION AND SECURITY GUARANTEES SOMALI CLAN LEADER AIDID EMERGED FROM HIDING TO CELEBRATE THE LIFTING OF A UN ORDER FOR HIS ARREST HE ADDRESSED A JUBILANT RALLY OF 4000 MEMBERS OF HIS SOMALI NATIONAL ALLIANCE AND ALSO HELD TALKS WITH US ENVOY OAKLEY AIDID WENT INTO HIDING IN MIDJUNE AFTER HIS MILITIAMEN WERE BLAMED FOR ATTACKS THAT KILLED 24 PAKISTANI SOLDIERS THE SENATE VOTED TO RESTORE INDEPENDENT COUNSEL INVESTIGATIONS BUT WARNED FUTURE PROSECUTORS TO REIN IN COSTS AND LIMIT COMMENTS ABOUT THOSE WHO AREN'T INDICTED THE INDEPENDENT COUNSEL LAW EXPIRED LAST YEAR WHEN SENATE REPUBLICANS BLOCKED ITS RENEWAL AMID COMPLAINTS ABOUT THE SEVENYEAR IRANCONTRA PROBE THE HOUSE PASSED A BILL CRACKING DOWN ON ABORTION CLINIC VIOLENCE AFTER LAWMAKERS REJECTED A BID BY ANTIABORTION LEGISLATORS TO SOFTEN PENALTIES FOR PROTESTERS WHO STAGE PEACEFUL BLOCKADES THE BILL IS SIMILAR TO A VERSION THAT CLEARED THE SENATE BOSNIA'S THREE RIVAL FACTIONS SIGNED A JOINT DECLARATION TO GUARANTEE UN AID CONVOYS UNHINDERED PASSAGE ACROSS THE FORMER YUGOSLAV REPUBLIC THIS WINTER MEANWHILE THE UN SAID FIVE PATIENTS DIED AT AN UNHEATED MENTAL HOSPITAL NEAR SARAJEVO AND OTHERS WERE WANDERING NAKED BECAUSE CLOTHING SUPPLIES HAVE BEEN EXHAUSTED TENS OF THOUSANDS OF PEOPLE STOOD SILENTLY IN THE CLASSROOMS AND TOWN SQUARES OF NORTHERN IRELAND AT MIDDAY PRAYING FOR PEACE MORE THAN 50000 PEOPLE IN 16 CITIES AND TOWNS TOOK PART IN THE APPEAL FOR AN IMMEDIATE HALT TO THE NEARLY QUARTERCENTURY OF POLITICAL AND SECTARIAN VIOLENCE OVER BRITISH RULE OF THE PROVINCE ISRAEL AND THE PLO HAVE AGREED ON SECURITY ARRANGEMENTS FOR JEWISH SETTLERS IN THE GAZA STRIP A PLO NEGOTIATOR TOLD REPORTERS IN CAIRO BUT HE SAID THREE ISSUES REMAIN TO BE SOLVED IN THE TALKS ON ISRAELI WITHDRAWAL FROM GAZA AND JERICHO CONTROL OF BORDER CROSSINGS RELEASE OF ARAB PRISONERS AND JERICHO'S BOUNDARIES THE ISRAELI ARMY HAS DEPLOYED ADDITIONAL TROOPS IN THE OCCUPIED TERRITORIES TO STEM A RECENT RISE IN VIOLENT INCIDENTS ACCORDING TO SECURITY OFFICIALS ON WEDNESDAY AN ARAB STABBED A SOLDIER TO DEATH IN GAZA BRINGING THE DEATH TOLL SINCE SEPTEMBER TO 12 ISRAELIS AND 20 PALESTINIANS WHITE RIGHTWINGERS PUSHED THEIR DEMAND FOR AN AFRIKANER HOMELAND DURING TALKS WITH THE AFRICAN NATIONAL CONGRESS THE DISCUSSIONS TOOK PLACE ONLY HOURS AFTER SOUTH AFRICAN LEADERS APPROVED A POSTAPARTHEID CONSTITUTION MEANWHILE BLACK CONSERVATIVE LEADER BUTHELEZI DECLARED HE WOULD FIGHT THE DRAFT CONSTITUTION NIGERIA'S NEW MILITARY LEADER SCRAPPED THE NATION'S TWO POLITICAL PARTIES AND ALL DEMOCRATICALLY ELECTED BODIES IN HIS FIRST BROADCAST TO THE NATION SINCE TAKING POWER ON WEDNESDAY GEN SANI ABACHA SAID HE WAS REPLACING STATE AND LOCAL GOVERNMENTS WITH MILITARY COMMANDERS IRAQ IS MASSING TROOPS AND BUILDING AN EARTHEN BARRIER TO TRAP REBELS AND DISSIDENT CIVILIANS IN SWAMPS IN THE SOUTHERN PART OF THE COUNTRY ACCORDING TO IRAQI OPPOSITION GROUPS AND WESTERN OFFICIALS 9311190052 931119 BUSINESS BRIEF CIE GENERALE DES EAUX GROUP PROFIT FOR FULL YEAR IS EXPECTED TO RISE SLIGHTLY FRANCE'S CIE GENERALE DES EAUX EXPECTS GROUP PROFIT FOR THE YEAR TO BE EQUAL TO OR A BIT ABOVE THREE BILLION FRANCS 5092 MILLION ACCORDING TO JACQUES ESPALIOUX CHIEF FINANCIAL OFFICER LAST YEAR GROUP PROFIT WAS 291 BILLION FRANCS ON REVENUE OF 1433 BILLION FRANCS IT EXPECTS REVENUE TO BE UNCHANGED ADDRESSING AN ANALYSTS' MEETING MR ESPALIOUX ALSO SAID THE PUBLICWORKS AND CONSTRUCTION GROUP'S INVESTMENTS WILL DECLINE ONLY SLIGHTLY THIS YEAR TO 183 BILLION FRANCS FROM A YEAREARLIER 184 BILLION HE NOTED A GREATER WEIGHT TOWARD FINANCIAL INVESTMENTS WHICH HAVE RISEN TO SIX BILLION FRANCS THIS YEAR FROM 54 BILLION FRANCS IN 1992 INDUSTRIAL INVESTMENTS FELL TO 123 BILLION FRANCS FROM A YEAREARLIER 13 BILLION FRANCS HE SAID THE GROUP'S CORE WATERSERVICES ENERGY AND WASTEMANAGEMENT ACTIVITIES ARE PERFORMING WELL WHILE CONSTRUCTION AND COMMUNICATIONS BUSINESSES ARE EXPERIENCING TROUBLE 9311190050 931119 BUSINESS BRIEF MEDCO CONTAINMENT SERVICES INC SHAREHOLDERS CLEAR MERGER WITH MERCK DRUG COMPANY SHAREHOLDERS OF MEDCO CONTAINMENT SERVICES INC APPROVED THE 6 BILLION MERGER OF THE DRUG DISTRIBUTION AND MARKETING COMPANY WITH MERCK & CO THE GIANT PRESCRIPTION DRUG MANUFACTURER SEEKING TO ALLAY CONCERNS THAT MEDCO WOULD LOSE CREDIBILITY AND CUSTOMERS ITS EXECUTIVES SAID THE COMPANY HAS ADDED MORE THAN TWO DOZEN ACCOUNTS SINCE THE MERGER PROPOSAL WAS ANNOUNCED IN JULY MARTIN J WYGOD MEDCO CHAIRMAN SAID MEDCO WON A GENERAL MOTORS CONTRACT TO MANAGE 400 MILLION IN RETAIL AND MAILORDER DRUG SPENDING BY 13 MILLION OF THE AUTO MAKER'S EMPLOYEES RETIREES AND DEPENDENTS IN THE US MEDCO HAD A 100 MILLION CONTRACT FOR MAILORDER SERVICES P ROY VAGELOS MERCK CHAIRMAN SAID MERCK WILL BENEFIT FROM INCREASED MARKET SHARE AS A RESULT OF THE MERGER SEPARATELY DR VAGELOS SAID MERCK IS NEGOTIATING WITH HEALTH PLANS TO SELL ITS PROSTATESHRINKING DRUG PROSCAR WITH A GUARANTEE THAT THE DRUG WOULD REDUCE A HEALTH PLAN'S PROSTATE SURGERY COSTS OR MERCK WILL REFUND THE DRUG'S COST 9311190049 931119 HOUSE CLEARS BILL TO IMPOSE ROYALTIES FOR HARDROCK MINING ON FEDERAL LAND BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE ATTEMPTING TO OVERHAUL A 19TH CENTURY MINING LAW VOTED TO IMPOSE ROYALTIES FOR THE FIRST TIME FOR HARDROCK MINING ON FEDERAL LAND THE MEASURE CLEARED BY A 316108 VOTE ALSO WOULD CREATE NEW ENVIRONMENTAL RESTRICTIONS FOR MINERS ON FEDERAL LAND AND WOULD END THE PRACTICE OF PATENTING OR TRANSFERRING OWNERSHIP OF PUBLIC LANDS TO PRIVATE COMPANIES OR INDIVIDUALS WHO MINE THEM THE ROYALTIES APPROVED BY THE HOUSE WOULDN'T BE AS HIGH AS THE CLINTON ADMINISTRATION PROPOSED IN ITS 1994 BUDGET BUT WITHDREW IN THE FACE OF OBJECTIONS FROM WESTERN SENATORS BUT THEY WOULD BE MUCH HIGHER THAN ONES INCLUDED IN A MININGLAW BILL SPONSORED BY SEN LARRY CRAIG R IDAHO THAT THE SENATE PASSED MAY 25 AN INTERIOR DEPARTMENT SPOKESWOMAN ECHOING EARLIER REMARKS BY INTERIOR SECRETARY BRUCE BABBITT SAID THE HOUSE VERSION SPEARHEADED BY REP NICK RAHALL D W VA IS MUCH MORE IN LINE WITH WHAT THE ADMINISTRATION WANTS THE HOUSE BILL WOULD REQUIRE MINERS TO PAY ROYALTIES AMOUNTING TO 8 OF THE GROSS VALUE OF ALL HARDROCK MINERALS EXTRACTED HARDROCK MINERALS ARE HEAVY MINERALS SUCH AS GOLD SILVER OR COPPER THE SENATE BILL WOULD SET THE FEE AT 2 AND THE ORIGINAL CLINTON BUDGET WOULD HAVE MADE IT 125 CURRENTLY COMPANIES AND INDIVIDUALS PAY NO ROYALTIES ON HARDROCK MINERALS EXTRACTED FROM PUBLIC LAND THOUGH THEY MAY PAY SEVERANCE OR GROSS PROCEEDS TAXES TO STATE GOVERNMENTS KATHRYN HOHMANN WASHINGTON DIRECTOR OF THE PUBLICLANDS PROGRAM FOR THE SIERRA CLUB HAILED PASSAGE OF THE HOUSE BILL AS A HISTORIC MOMENT SAYING FOR THE FIRST TIME THE AMERICAN PEOPLE HAVE DECIDED TO REVISE THIS CREAKY OLD LAW AND PROTECT THE PUBLIC LANDS THE PUBLIC HEALTH AND THE PUBLIC PURSE BUT THE INDUSTRYFINANCED MINERAL RESOURCES ALLIANCE DENOUNCED THE BILL AS EXTREME ANTIMINING LEGISLATION THAT WOULD RESULT IN 1100 LOST JOBS IN THE FIRST YEAR AND UNLEASH A FLOODGATE OF LITIGATION THAT WOULD COST MILLIONS TO RESOLVE THE MINING LAW OF 1872 IS THE LAST OF THE MAJOR HOMESTEADING STATUTES PASSED DURING THE LAST CENTURY TO ENCOURAGE WESTERN SETTLEMENT TO REMAIN ON THE BOOKS LARGELY UNCHANGED THE LAW WAS MODIFIED IN 1920 WHEN OIL AND GAS WERE REMOVED FROM ITS JURISDICTION ALLOWING THE FEDERAL GOVERNMENT TO CHARGE ROYALTIES FOR OIL AND GAS REMOVED FROM FEDERAL LAND UNDER THE HOUSE BILL THE INTERIOR SECRETARY FOR THE FIRST TIME WOULD BE GIVEN LEGAL AUTHORITY TO DENY MINING PERMITS ON CERTAIN PUBLIC LANDS DEEMED UNSUITABLE FOR MINING IN ADDITION ALL ROYALTIES AS WELL AS EXISTING HOLDING FEES WOULD BE PLACED IN A FUND TO BE USED FOR RECLAMATION OF ABANDONED HARDROCK MINES THE SENATE BILL ALSO CALLS FOR RECLAMATION BUT DOESN'T SPECIFY A FINANCING MECHANISM THE HOUSE BILL ALSO WOULD STOP THE TRANSFER OF LAND TO COMPANIES OR INDIVIDUALS WHO MINE ON FEDERAL LAND CURRENTLY COMPANIES MAY PATENT OR PURCHASE FEESIMPLE TITLE TO SUCH LAND FOR AS LITTLE AS 250 AN ACRE THE SENATE BILL WOULDN'T ABOLISH SUCH PATENTS BUT WOULD RAISE THE PRICE TO FAIRMARKET VALUE 9311190048 931119 NAFTA THE ROAD AHEAD NAFTA VICTORY KEEPS GATT'S CHANCES ALIVE BY LAWRENCE INGRASSIA AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL NOW IT'S BACK TO GATT BUT DON'T EXPECT TOO MUCH THE VICTORY FOR THE NORTH AMERICAN FREE TRADE AGREEMENT IN THE US HOUSE OF REPRESENTATIVES EASES THE WORST FEARS OF WORLD LEADERS THAT A NAFTA REBUFF WOULD HAVE DOOMED TALKS IN GENEVA ON A BROADER INTERNATIONAL AGREEMENT INSTEAD HOPES HAVE BEEN RAISED THAT NEGOTIATORS JUST MIGHT MEET THE DEC 15 DEADLINE FOR CONCLUDING TALKS ON THE GENERAL AGREEMENT ON TARIFFS AND TRADE THERE IS NO NEGOTIATOR IN GENEVA WHO ISN'T BREATHING A SIGH OF RELIEF SAID PETER SUTHERLAND DIRECTOR GENERAL OF GATT SIR LEON BRITTAN THE EUROPEAN COMMUNITY'S TRADE COMMISSIONER SAID A GATT DEAL NOW IS PERFECTLY POSSIBLE I'M SURE THAT IN THE ENDGAME EVERYBODY IS GOING TO MOVE ADDED JOHN SCHMIDT THE CHIEF US NEGOTIATOR IN GENEVA IT'S TERRIFIC THIS REMOVES A CLOUD OVER GATT THE STAKES IN THE GATT TALKS ARE IMMENSE THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ESTIMATES THAT A BROAD DEAL IN GENEVA COULD ADD 270 BILLION TO THE 30 TRILLION WORLD ECONOMY IN 2002 BUT THIS ROUND OF NEGOTIATIONS HAS BEEN PARTICULARLY VEXING BECAUSE THE GOALS ARE SO AMBITIOUS AND THE NATIONS SO UNWILLING TO MAKE THE NECESSARY COMPROMISES AND IN FACT THE OPTIMISM WROUGHT BY NAFTA'S WIN IS TEMPERED BY A GROWING FEELING THAT ANY GATT PACT MAY NOT BE AS BROAD AS ONCE ENVISIONED TARIFFS WON'T DECLINE AS SHARPLY AND OTHER BARRIERS WON'T BE LOOSENED AS MUCH AFTER SEVEN YEARS OF PAINSTAKINGLY SLOW NEGOTIATIONS THERE MAY BE TOO MANY DIFFICULT ISSUES TO RESOLVE IN THE FINAL MONTH MOREOVER TO WIN LAWMAKERS' SUPPORT OF NAFTA PRESIDENT CLINTON MADE PROMISES TO TRY TO LIMIT GATT CONCESSIONS WHICH MAY PROMPT OTHER NATIONS TO MODIFY MARKETOPENING AGREEMENTS THE US SEEKS INDEED GATT OFFICIALS AND DELEGATES CAUTIONED THAT A SUCCESSFUL CONCLUSION OF THE SOCALLED URUGUAY ROUND OF TALKS ISN'T ASSURED MR SUTHERLAND IN AN INTERVIEW WOULD ONLY GO AS FAR AS SAYING THAT THERE IS A REASONABLE PROSPECT OF SUCCEEDING THOUGH HE BELIEVES NEGOTIATORS WANT TO CLINCH A DEAL FOR ONE THING EVEN BEFORE NAFTA BECAME A FACTOR NEGOTIATORS WERE DEADLOCKED ON SEVERAL KEY ISSUES FRANCE FOR EXAMPLE HAS OBJECTED STRENUOUSLY TO MAKING CONCESSIONS ON AGRICULTURAL SUBSIDIES THAT THE EC AGREED TO BUT THE US HAS REFUSED SO FAR TO RECONSIDER THE MATTER THE LARGE INDUSTRIAL COUNTRIES INCLUDING THE EC US JAPAN AND CANADA HAVE YET TO FOLLOW THROUGH ON SPECIFIC PROPOSALS FOR SHARP TARIFF REDUCTIONS THAT THEY AGREED TO IN GENERAL IN TOKYO LAST SUMMER THE US HASN'T OFFERED TO OPEN ITS MARITIME MARKETS TO OUTSIDE COMPETITION AS MUCH AS OTHERS WANT AND THE EC HAS BALKED AT REDUCING BARRIERS TO MOVIES AND OTHER CULTURAL TRADE AS THE US WANTS MOVEMENT ON THESE ISSUES WOULD BE DIFFICULT IN ANY CASE BUT ANY DEALS THAT PRESIDENT CLINTON STRUCK IN WASHINGTON TO GAIN PRONAFTA VOTES COULD COMPLICATE THINGS FURTHER FOR EXAMPLE MR CLINTON WON SOME VOTES BY PROMISING GREATER PROTECTION FOR A LONGER PERIOD OF YEARS FOR US TEXTILES A MOVE THAT ANGERS POOR DEVELOPING NATIONS THAT MANUFACTURE LOWCOST TEXTILES TEXTILES MIGHT FURTHER DIVIDE THE EC AND THE US BECAUSE THE EC FEELS IT COULD EXPORT MORE CLOTHING TO THE US IF WASHINGTON WOULD REDUCE PEAK OR VERY HIGH TARIFFS ON SOME ITEMS OF INTEREST TO IT SIMILARLY THE US PREVIOUSLY INDICATED THAT AS PART OF A GATT AGREEMENT IT WOULD BE WILLING TO GIVE UP A LONGSTANDING PREROGATIVE TO IMPOSE RESTRICTIONS ON AGRICULTURAL IMPORTS UNDER CERTAIN CIRCUMSTANCES BUT TO WIN VOTES OF LEGISLATORS FROM WHEATPRODUCING STATES THE CLINTON ADMINISTRATION PLEDGED TO PURSUE RESTRICTIONS AGAINST IMPORTS OF DURUM WHEAT FROM CANADA IF THE TWO COUNTRIES CAN'T SETTLE A DISPUTE OVER THE LEVEL OF IMPORTS THIS ISN'T NECESARILY A DEAL BREAKER FOR GATT BECAUSE THE GATT AGREEMENT THAT WOULD ELIMINATE THESE RESTRICTIONS ISN'T EXPECTED TO TAKE EFFECT UNTIL 1995 THE US MIGHT BE ABLE TO IMPOSE RESTRICTIONS NOW BUT STILL BE HELD TO THE AGREEMENT LATER NONETHELESS THIS RANKLES THE CANADIANS YOU CAN'T HAVE IT BOTH WAYS SAID A DELEGATE TO GATT STALEMATES ON THESE AND OTHER ISSUES SUCH AS CITRUS PRODUCTS COULD BE PROBLEMATIC BECAUSE OF THE URUGUAY ROUND RULE THAT NOTHING IS FINALLY AGREED UNTIL ALL IS AGREED FURTHER THESE POTENTIAL OBSTACLES HAVE BEEN ADDED AT A TIME WHEN GATT FACES A CRITICAL DEADLINE UNDER A SOCALLED FASTTRACK AUTHORITY GIVEN THE PRESIDENT BY CONGRESS ANY GATT AGREEMENT NEGOTIATED BY THE DEC 15 DEADLINE MUST BE VOTED ON BY CONGRESS WITHOUT ANY AMENDMENTS ASSUMING CONGRESS DOESN'T EXTEND THIS AUTHORITY ANY DEAL AFTER THAT WOULD BE SUBJECT TO AMENDMENTS PROMOTED BY SPECIALINTEREST GROUPS THAT COULD SCUTTLE ANY DEAL REACHED IN GENEVA WHAT CONCERNS ME MOST IS THE PRICE YOU HAVE TO PAY TO NEGOTIATE WITH THE US IN THE FIRST INSTANCE YOU'VE GOT TO CUT A DEAL THEN YOU'VE GOT TO CUT A SECOND DEAL TO GET IT THROUGH THE CONGRESS ONE EUROPEAN DELEGATE SAID STILL WITH THIS ADDED PRESSURE TO REACH AN AGREEMENT QUICKLY MOST TRADE DELEGATES IN GENEVA ARE TRYING TO SEE THE BRIGHT SIDE NAFTA THIS VOTE AGAINST PROTECTIONISM HAS OPENED THE ROAD TO ENDING THE URUGUAY ROUND BRAZIL'S AMBASSADOR TO GATT LUIZ FELIPE PALMEIRA LAMPREIA SAID WHEN ASKED ABOUT THE POTENTIAL PROBLEMS ON CITRUS TARIFFS ADDED K KESAVAPANY SINGAPORE'S DELEGATE IT'S NOT LOST YOU CAN'T BE A NEGOTIATOR AND THROW UP YOUR HANDS BEFORE THE DEADLINE EC OFFICIALS SAID MUCH WILL HINGE ON HOW WELL TALKS GO BETWEEN SIR LEON BRITTAN AND US TRADE REPRESENTATIVE MICKEY KANTOR SCHEDULED FOR MONDAY AND TUESDAY IN WASHINGTON THEY SAID THE MEETING WILL BE AN IMPORTANT INDICATOR OF THE AMOUNT OF GROUND WASHINGTON IS WILLING TO GIVE THE DISCUSSIONS WILL FOCUS ON TARIFFS ON TEXTILES STEEL AIRCRAFT SUBSIDIES MARKET ACCESS FOR AGRICULTURE THE AUDIOVISUAL INDUSTRY AND THE CREATION OF A MULTILATERAL TRADE ORGANIZATION A MOVE SOUGHT BY THE COMMUNITY BUT VIEWED SKEPTICALLY BY THE US EC FOREIGN MINISTERS WILL MEET IN BRUSSELS DEC 2 TO REVIEW THE NEGOTIATIONS BUT MANY IN GENEVA BELIEVE THE TIME IS RIPE FOR A DEAL EVEN IF THE FINAL PACKAGE ISN'T AS GOOD OR AS COMPREHENSIVE AS MANY MAY HAVE YEARNED FOR CALL IT NEGOTIATING FATIGUE OR CALL IT AS ONE TRADE AMBASSADOR DOES POLITICAL REALITY FEW IF ANY COUNTRIES ARE PREPARED TO RISK WHAT PROGRESS HAS BEEN MADE IN THE TALKS JUST BECAUSE THEY CAN'T GET ALL THEY WANT THOUGH THINGS HAVEN'T BEEN FINALIZED THERE HAS BEEN SUBSTANTIAL MOVEMENT IN WORKING OUT AGREEMENTS ON INTELLECTUAL PROPERTY RIGHTS AND TRADE IN SERVICES AMONG OTHERS WE HAVE ALREADY ACHIEVED A LOT SAID A SENIOR EC OFFICIAL WHO ADDED THAT THE REMAINING ISSUES ARE ONES THAT POLITICAL LEADERS AT HOME MORE THAN NEGOTIATORS IN GENEVA NEED TO RESOLVE 9311190047 931119 BUSINESS BRIEF METROPOLITAN LIFE INSURANCE CO WEST VIRGINIA INVESTIGATES AGENTS' MARKETING PRACTICES WEST VIRGINIA HAS BEGUN AN INVESTIGATION OF THE SALES PRACTICES OF METROPOLITAN LIFE INSURANCE CO MAKING IT THE LATEST STATE TO PROBE THE COUNTRY'S LARGEST SELLER OF LIFE INSURANCE WEST VIRGINIA IS LOOKING INTO WHETHER MET AGENTS USED DECEPTIVE SALES PRACTICES TO MARKET LIFEINSURANCE POLICIES FLORIDA TEXAS PENNSYLVANIA AND NORTH CAROLINA ALSO HAVE INVESTIGATIONS UNDER WAY A MET SPOKESMAN SAID THE COMPANY HASN'T RECEIVED FORMAL NOTIFICATION OF AN INVESTIGATION BY WEST VIRGINIA THE COMPANY HAS CONCEDED THAT SOME FORMER AGENTS MISLED CUSTOMERS BUT DENIES THAT DECEPTIVE SALES PRACTICES ARE WIDESPREAD IN THE ORGANIZATION 9311190046 931119 BUSINESS BRIEF USX CORP UK UNIT OFFERS PROPOSAL FOR OIL GROUP DEVELOPMENT MARATHON OIL UK LTD A SUBSIDIARY OF MARATHON OIL CO HOUSTON SAID IT SUBMITTED A PLAN TO THE BRITISH GOVERNMENT ON BEHALF OF THE BRAE GROUP FOR DEVELOPMENT OF THE BEINN GAS CONDENSATE FIELD IN THE NORTH SEA THE BEINN FIELD IS IN UK BLOCK 16/7A ABOUT 155 MILES NORTHEAST OF ABERDEEN SCOTLAND AND PARTLY UNDERLIES THE NORTH BRAE FIELD MARATHON A UNIT OF USX CORP IN PITTSBURGH SAID DEVELOPMENT WILL USE FACILITIES ON THE BRAE B PLATFORM THE COMPANY SAID WET GAS IN PLACE IS ESTIMATED TO EXCEED 300 BILLION CUBIC FEET MARATHON IS THE OPERATOR FOR THE BRAE GROUP OF OIL CONCERNS OF WHICH MARATHON OIL UK HOLDS 38 9311190045 931119 BUSINESS BRIEF ABB ASEA BROWN BOVERI LTD ABB TRACTION UNIT RECEIVES 285 MILLION SUBWAYCAR JOB THE SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY SAID IT AWARDED A 285 MILLION CONTRACT FOR THE CONSTRUCTION OF 220 NEW SUBWAY CARS TO ABB TRACTION INC A UNIT OF ABB ASEA BROWN BOVERI LTD OF SWITZERLAND SEPTA SAID THE NEW CARS WILL REPLACE ITS 33YEAROLD FLEET FOR THE MARKETFRANKFORD LINE BY 1997 THE NEW FLEET WILL CONSIST OF 110 PAIRS OF CARS EACH SINGLE CAR WILL COST ABOUT 115 MILLION THE CONTRACT INCLUDES SPARE PARTS A TWOCAR WORK TRAIN A TRAINING SIMULATOR SPECIAL TOOLS AND EQUIPMENT ABB TRACTION SAID IT WILL MANUFACTURE THE CARS IN ITS ELMIRA HEIGHTS NY PLANT WHERE THE DESIGN AND ENGINEERING WORK IS ALREADY UNDERWAY ABB ASEA BROWN BOVERI IS A HOLDING COMPANY OWNED JOINTLY BY ASEA AB OF SWEDEN AND BBC BROWN BOVERI AG OF SWITZERLAND 9311190044 931119 NAFTA THE ROAD AHEAD POLITICS & POLICY IN VOTE'S WAKE AN ODD COALITION OF OPPONENTS SHARPENS SWORDS BUT MAY CLASH ON PRIORITIES BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LAWMAKERS FACED AN UNUSUAL GANTLET WHEN THEY WALKED OFF THE HOUSE FLOOR AFTER THE NORTH AMERICAN FREE TRADE AGREEMENT VOTE BEHIND VELVETCOVERED ROPES LIKE THE KIND FOUND IN MOVIE THEATERS WERE ENVIRONMENTALISTS LABOR OFFICIALS AND RALPH NADER CLUTCHING TWO VOLUMES OF THE TRADE AGREEMENT IN THE WAITING PHALANX GENE KARPINSKI AN OFFICIAL FROM THE CONSUMER ORGANIZATION US PUBLIC INTEREST RESEARCH GROUP TAUNTED REP MEL REYNOLDS AS THE ILLINOIS DEMOCRAT STARTED OUT THE DOOR TOWARD THE GROUP MANY OF WHOSE MEMBERS SUPPORTED HIM DURING LAST YEAR'S ELECTION AS MR REYNOLDS BEGAN TO BACKTRACK MR KARPINSKI SAID YEAH YOU BETTER GO ANOTHER WAY AT THAT MOMENT DANIEL WEISS OF THE SIERRA CLUB TOOK GLEE AT THE GROUP'S SEEMINGLY INTIMIDATING PRESENCE AND SAID HE'S GOING OUT ANOTHER DOOR A COUPLE OF UNION OFFICIALS LAUGHED AT THE SIGHT IN THE FACE OF WEDNESDAY NIGHT'S CRUSHING DEFEAT WHAT HAPPENS TO THESE ACTIVISTS AND THE OTHER ANGRY PEOPLE WHO BANDED TOGETHER AGAINST NAFTA THEY INCLUDE NOT ONLY THE MILLIONS OF PEOPLE REPRESENTED BY THE COUPLE OF DOZEN LINED UP IN THE HALLS OF THE CAPITOL FOR THE VOTE BUT ALSO ROSS PEROT PAT BUCHANAN JERRY BROWN JESSE JACKSON AND THEIR FOLLOWERS AROUND THE COUNTRY THIS IS THE BEGINNING NOT THE END INSISTED JOAN CLAYBROOK PRESIDENT OF THE NADER GROUP PUBLIC CITIZEN AS SHE PASSED OUT LIFESAVERS TO BUCK UP HER COMPATRIOTS BEHIND THE VELVET ROPES THERE'S SUCH ANGER OFFICIALS FROM THE VARIOUS GROUPS SAY THEIR AGENDAS WILL CONVERGE ON SEVERAL DIFFERENT FRONTS EXPOSING THE DEALS PRESIDENT CLINTON CUT TO WIN NAFTA VOTES FIGHTING WORLDTRADE TALKS BEING HELD IN GENEVA BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND GOING AFTER POLITICIANS WHO DESERTED THEIR CAUSE MORE THAN ANYTHING ELSE IT APPEARS THE NAFTA SCRAP MAY HAVE LAUNCHED A HARDCORE COALITION AGAINST TRADE LIBERALIZATION FOR THE FIRST TIME SINCE THE END OF WORLD WAR II IT'S LEFT A PERMANENT TRADE MOVEMENT SAID LORI WALLACH A TRADE OFFICIAL AT PUBLIC CITIZEN DURING THE FLOOR DEBATE THE COALITION HAS BROUGHT TOGETHER STRANGE PARTNERSHIPS OBVIOUS WHEN MS WALLACH SHUFFLES WITH RON PHILLIPS AN AIDE TO THE SELFPROCLAIMED PROTECTIONIST REP DUNCAN HUNTER R CALIF IN A QUICK TWOSTEP IN THE HALLWAY IT'S A REALIGNMENT SAID MR PHILLIPS KEEPING THIS ODD ASSORTMENT TOGETHER WILL BE NO EASY TASK FOR ONE THING THE SURPRISINGLY WIDE MARGIN OF VICTORY FOR THE CLINTON ADMINISTRATION SUGGESTS THE ANTINAFTA EFFORT MAY HAVE PEAKED ANTINAFTA FORCES HAVE RUFFLED EACH OTHERS' FEATHERS AND SOME OFFICIALS HAVE GROWN WEARY AFTER THE LONG STRUGGLE MOREOVER MANY OF THE GROUPS HAVE DIFFERENT PRIORITIES DOROTHY ELLSWORTH A LOBBYIST FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS AN AFLCIO GROUP SAID ONE OF THE UNION'S TOP PRIORITIES WILL BE THE ISSUE OF US AIRLINES MOVING THEIR MAINTENANCE BASES OVERSEAS MR WEISS POLITICAL DIRECTOR AT THE SIERRA CLUB SAID HIS GROUP'S PRIORITY WILL BE MONITORING FOLLOWTHROUGH ON THE MANY PLEDGES THE CLINTON ADMINISTRATION MADE TO IMPROVE THE ENVIRONMENT ALONG THE USMEXICO BORDER SUCH WORK SHOULD BRING TOGETHER ENVIRONMENTAL GROUPS THAT WERE SPLIT ON NAFTA WE'RE GOING TO START WORKING TOGETHER AGAIN SAID MR WEISS ADDING THAT THE GROUP'S NEXT PRIORITY WILL BE BLOCKING THE WORLD TRADE TALKS AND AT A POSTVOTE BRIEFING OF ANTINAFTA COALITION MEMBERS JESSE JACKSON SPOKE ON THE ISSUE OF WINNING STATEHOOD FOR THE DISTRICT OF COLUMBIA FOES OF THE TRADE PACT SAY THEY PLAN TO USE RESENTMENT OVER THE VOTE DEALS TO KEEP THE ANTINAFTA PASSION ALIVE ANTINAFTA OFFICIALS REPORT AN OUTCRY FROM REPRESENTATIVES IN THEIR FIELD OPERATIONS INCLUDING A SENTIMENT TAXPAYERS HAVE BEEN PORKED THERE'S INDIGNATION THEY FEEL OUTRAGED SAYS MR NADER WHO IS ORGANIZING A PORK PATROL TO CHRONICLE THE DEALS AND THEIR ESTIMATED EXPENSE TO TAXPAYERS ADMINISTRATION OFFICIALS CLAIM THE DEALS DON'T CARRY A COST THE LARGER TRADE BATTLE IS THE TALKS HELD BY GATT WHICH ACTS AS THE WORLD'S TRADE COP MANY OF THE PEOPLE INVOLVED IN THE NAFTA BATTLE CONSIDERED THE USMEXICOCANADA TRADE AGREEMENT A PART OF THEIR BIGGER FIGHT AGAINST TRADE LIBERALIZATION BEING NEGOTIATED DURING THE WORLD TRADE TALKS WHICH FACE A DEC 15 DEADLINE SEGUNDO MERCADOLIORENS DIRECTOR OF GOVERNMENT AFFAIRS AT THE UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION AN AFLCIO GROUP SAID WE'RE GOING TO GET TOGETHER IN THE NEXT 24 HOURS TO 48 HOURS ON GATT WE'RE GOING TO ENERGIZE OUR MOVEMENT AGAINST THE GATT IN ADDITION JIM JONTZ HEAD OF CITIZENS TRADE CAMPAIGN SAID HIS ANTINAFTA GROUP WILL TURN ITS ATTENTION TO GATT VARIOUS ANTINAFTA GROUPS SHARE CONCERNS THAT US FOODSAFETY CONSUMER AND ENVIRONMENTAL STANDARDS WILL BE LOWERED UNDER THE TERMS CURRENTLY BEING NEGOTIATED THEY ALSO SHARE WORRIES THAT US NATIONAL SOVEREIGNTY WOULD BE THREATENED BY A MULTILATERAL TRADE ORGANIZATION WHICH IS BEING PROPOSED AS A REPLACEMENT TO GATT WITH SIGNIFICANTLY TOUGHER ENFORCEMENT ABILITIES MANY OFFICIALS IN THE ANTINAFTA CAMP POINT TO A SECOND NAFTA VOTE NEXT NOVEMBER AN ANGRY AFLCIO PRESIDENT LANE KIRKLAND SAYING NO ONE SHOULD UNDERESTIMATE THE STRENGTH AND DEPTH OF THOSE FEELINGS ON THIS ISSUE WARNED THAT LABOR SUPPORTS FOR LAWMAKERS IN NEXT YEAR'S CONGRESSIONAL ELECTIONS WILL HINGE IN PART ON THEIR NAFTA STANCE WE'RE READY FOR THE NEXT FIGHT SAYS JOHN JOCK NASH A WASHINGTON LOBBYIST FOR TEXTILE CONCERN MILLIKEN & CO WHICH FUNDED ANTINAFTA ACTIVITIES WE'LL ALL STILL BE TOGETHER AND WHILE MR JACKSON WASN'T A PART OF THE ANTINAFTA GROUP WEDNESDAY NIGHT HE SEEMS TO SHARE THEIR SENTIMENTS OVER AT LEAST ONE POLITICIAN ASKED ABOUT REP REYNOLDS'S VOTE FOR NAFTA MR JACKSON WHO SUPPORTED THE CHICAGO DEMOCRAT'S ELECTION BID ACKNOWLEDGED HE WAS ONE REPRESENTATIVE OVER WHICH THERE IS GREAT TENSION 9311190043 931119 BUSINESS BRIEF OLYMPUS OPTICAL CO PRETAX PROFIT DECLINED 17 DURING THE FISCAL FIRST HALF OLYMPUS OPTICAL CO A MAJOR JAPANESE MAKER OF CAMERAS AND OPTICAL EQUIPMENT REPORTED ITS UNCONSOLIDATED PRETAX PROFIT FELL 17 DURING THE FISCAL FIRST HALF ENDED SEPT 30 HURT BY WEAK DEMAND AND THE YEN'S APPRECIATION THE COMPANY REPORTED PRETAX PROFIT OF 349 BILLION YEN 326 MILLION DOWN FROM 422 BILLION YEN A YEAR EARLIER SALES WERE DOWN 49 TO 9021 BILLION YEN FROM 9486 BILLION YEN OLYMPUS PREDICTED THAT FOR THE FULL FISCAL YEAR ITS UNCONSOLIDATED PRETAX PROFIT WILL FALL SHARPLY FROM THE YEAR BEFORE WHILE SALES WILL SHOW SUBSTANTIAL DECLINE BUT NET PROFIT IS EXPECTED TO REBOUND REFLECTING THE EXTRAORDINARY LOSS OF 425 BILLION YEN DURING THE PREVIOUS YEAR TO SETTLE A PATENTINFRINGEMENT LAWSUIT WITH USBASED HONEYWELL INC 9311190042 931119 BUSINESS BRIEF MICROTEST INC JUDGE DISMISSES LAWSUIT RELATED TO PUBLIC OFFERING A FEDERAL COURT JUDGE DISMISSED A LAWSUIT AGAINST MICROTEST INC THAT ALLEGED VARIOUS SECURITIES LAW VIOLATIONS RELATED TO ITS INITIAL PUBLIC OFFERING IN MARCH THE COMPANY SAID THE ACTION CONFIRMS OUR POSITION THAT THE LAWSUIT HAD NO MERIT SAID RICHARD MEISE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PHOENIX MAKER OF PRODUCTS THAT DIAGNOSE COMPUTERCABLE PROBLEMS THE SUIT FILED IN FEDERAL COURT IN PHOENIX IN MARCH CAME SHORTLY AFTER THE COMPANY SAID SALES PROBLEMS WITH A PRODUCT WOULD HURT FIRSTQUARTER EARNINGS MICROTEST SHARES FELL 48 TO 750 IN A DAY IN TRADING YESTERDAY ON THE NASDAQ STOCK EXCHANGE MICROTEST SHARES JUMPED 1 OR 19 TO 625 9311190041 931119 BUSINESS BRIEF INDEPENDENCE BANCORP COMPANY'S SHARES JUMP 8 ON DISCLOSURE OF DISCUSSIONS INDEPENDENCE BANCORP'S SHARE PRICE SOARED AS THE COMPANY SAID IT IS INVOLVED IN DISCUSSIONS ABOUT ITS POSSIBLE ACQUISITION INDEPENDENCE A PERKASIE PA BANK HOLDING COMPANY DIDN'T ELABORATE ON THE ANNOUNCEMENT WHICH CAME AMID MARKET SPECULATION THAT IT MIGHT BE SOUGHT BY REGIONAL BANKING COMPANIES THAT WANT TO EXPAND IN EASTERN PENNSYLVANIA INDEPENDENCE SHARES ROSE 250 A SHARE ON THE NASDAQ STOCK MARKET WEDNESDAY IT JUMPED AN ADDITIONAL 250 OR 8 YESTERDAY CLOSING AT 3350 THE STOCK HAD TRADED AS LOW AS 2550 EARLIER THIS MONTH AT YESTERDAY'S PRICE THE COMPANY'S 116 MILLION SHARES HAVE A MARKET VALUE OF ABOUT 387 MILLION 9311190040 931119 BUSINESS BRIEF CALIFORNIA AMPLIFIER INC DECLINE IN THIRDPERIOD NET IS EXPECTED STOCK FALLS 17 CALIFORNIA AMPLIFIER INC CAMARILLO CALIF SAID IT EXPECTS TO REPORT LOWER NET INCOME OF ABOUT 10 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDING NOV 27 REVENUE IS EXPECTED TO BE ABOUT 11 MILLION SAID THE COMPANY WHICH MAKES RECEIVING SYSTEMS FOR SATELLITE DISHES AND WIRELESS TELEVISION SIGNALS IN THE COMPARABLE QUARTER ENDED NOV 28 1992 THE COMPANY POSTED PERSHARE NET INCOME OF 12 CENTS ON REVENUE OF 88 MILLION INVESTORS WERE DISAPPOINTED BY THE FORECAST PUSHING SHARES DOWN 17 OR 175 TO 850 IN TRADING ON THE NASDAQ STOCK MARKET GROSS MARGINS FOR SATELLITETELEVISION PRODUCTS ARE BEING NEGATIVELY IMPACTED BY COMPETITIVE PRICING PRESSURES AND DELAYS IN NEW SATELLITETELEVISION PRODUCT INTRODUCTIONS SAID BARRY W HALL CHAIRMAN AND CHIEF EXECUTIVE OFFICER GROSS MARGINS FOR WIRELESS CABLE PRODUCTS ARE STEADY HE SAID 9311190039 931119 BUSINESS BRIEF CAESARS WORLD INC HOTEL CASINO CONCERN'S NET ROSE 86 IN FISCAL 1ST PERIOD CAESARS WORLD INC REPORTED SHARPLY HIGHER NET INCOME OF 278 MILLION OR 114 A SHARE FOR THE FISCAL FIRST QUARTER ENDED OCT 31 UP 86 FROM 15 MILLION OR 62 CENTS A SHARE A YEAR EARLIER REVENUE ROSE NEARLY 16 TO 2691 MILLION FROM 2326 MILLION HENRY GLUCK CHAIRMAN OF THE LOS ANGELESBASED HOTEL AND CASINO CONCERN ATTRIBUTED THE IMPROVED PERFORMANCE LARGELY TO STRONG TABLEGAME RESULTS AT THE COMPANY'S NEVADA CASINOS THE TABLEGAME WIN PERCENTAGE WAS 232 COMPARED WITH 158 A YEAR EARLIER WHILE SLOT REVENUE ROSE 13 AGAINST THE PRIORYEAR QUARTER WHEN SLOT REVENUE ROSE A STRONG 35 CAESARS ATLANTIC CITY REVENUES WERE OFF SLIGHTLY AS OPERATING INCOME ROSE AS A RESULT OF LOWER MARKETING EXPENSES THE EARNINGS EXCEEDED WALL STREET'S EXPECTATIONS AND BOOSTED CAESARS' STOCK 2875 OR 64 TO 47875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9311190038 931119 BUSINESS BRIEF ADVANCED MICRO DEVICES INC US JUDGE AGREES TO DELAY OPENING OF INTEL CASE RETRIAL A FEDERAL JUDGE HAS AGREED TO DELAY THE RETRIAL OF A CLOSELY WATCHED COPYRIGHT INFRINGEMENT CASE BROUGHT BY INTEL CORP AGAINST ADVANCED MICRO DEVICES INC US DISTRICT JUDGE WILLIAM INGRAM GRANTED AMD'S REQUEST TO DELAY OPENING ARGUMENTS IN THE RETRIAL UNTIL JAN 3 JUDGE INGRAM REJECTED A MOTION BY INTEL TO STOP THE RETRIAL BASED ON A RECENTLY DISCOVERED AMD DOCUMENT THAT INTEL SAYS SUPPORTS A 1992 JURY VERDICT AGAINST AMD IN THE FIRST TRIAL THE JUDGE ORDERED A RETRIAL AFTER CONCLUDING THAT INTEL BASED IN SANTA CLARA CALIF WITHHELD EVIDENCE AT ISSUE IS WHETHER A 1976 AGREEMENT BETWEEN THE COMPANIES GIVES AMD BASED IN SUNNYVALE CALIF THE RIGHT TO USE INTEL'S SOFTWARE IN AMD CLONES OF INTEL'S MICROPROCESSOR CHIPS 9311190037 931119 THE AMERICAS PUERTO RICANS DECIDE NOT TO DECIDE BY LAWRENCE KAAGAN SAN JUAN IN THE FINAL DAYS BEFORE LAST SUNDAY'S REFERENDUM ON WHETHER PUERTO RICO SHOULD REMAIN A COMMONWEALTH BECOME A STATE OR DECLARE INDEPENDENCE A 40YEAROLD MOTHER OF THREE HELD THE AMERICAN FLAG IN ONE HAND AND A PUERTO RICAN FLAG IN THE OTHER MARCHING UNDER SUNNY SKIES AND A TROPICAL 85DEGREE TEMPERATURE SHE SAID THE UNITED STATES HAS GIVEN US A GREAT DEAL IN THE WAY OF BENEFITS AND ADVANTAGES AND I'M HAPPY FOR THAT BUT I DON'T WANT TO LOSE MY IDENTITY AND CULTURE AS A PUERTO RICAN AT ANOTHER RALLY ACROSS TOWN A MIDDLEAGE MAN TOOK THE OTHER SIDE WE LIVE AS SECONDCLASS CITIZENS IN ONE OF THE FEW COLONIES LEFT IN THE WORLD AND IT'S A US COLONY IF WE ARE EVER TO HAVE BOTH SELFRESPECT AND THE RESPECT OF OTHERS WE SHOULD BECOME A STATE WE CAN ALWAYS KEEP OUR LANGUAGE AND OUR CULTURE IS OURS FOREVER I DON'T SEE THE PROBLEM THIS DEBATE WAS PLAYED OUT LAST WEEK ON A STAGE CONSTRUCTED BY THE FIRSTTERM GOVERNOR OF PUERTO RICO PEDRO ROSSELLO LAST YEAR THIS 49YEAROLD PHYSICIAN SWEPT INTO OFFICE ALONG WITH A MAJORITY IN BOTH LEGISLATIVE HOUSES WHILE DR ROSSELLO MADE NO SECRET OF HIS PASSIONATE BELIEF IN THE CENTRAL TENET OF HIS NEW PROGRESSIVE PARTY THAT PUERTO RICO SHOULD BECOME THE 51ST STATE OF THE US MOST CREDIT HIS WIN TO HIS OTHER PROPOSALS TAKING A FIRM HAND AGAINST VIOLENT CRIME INJECTING THE ISLAND'S EDUCATION AND HEALTH CARE SYSTEMS WITH A DOSE OF LOCAL CONTROL AND REFORMING PUBLIC SERVICE AGENCIES THAT WERE INEFFICIENT RIDDLED WITH WASTE AND FREQUENTLY VENUES FOR CORRUPT PATRONAGE EARLY MONDAY GOV ROSSELLO WAS FORCED TO RECOGNIZE THAT HIS POPULARITY WHICH HAS INCREASED ENORMOUSLY OVER THE PAST YEAR DID NOT CARRY OVER INTO VOTERS' SUPPORT FOR HIS POSITION ON STATEHOOD IN A CLOSELYWATCHED NONBINDING PLEBISCITE ELECTION 48 OF ISLANDERS VOTED TO KEEP COMMONWEALTH STATUS ANOTHER 46 VOTED TO PETITION THE US CONGRESS FOR ADMISSION AS THE 51ST STATE AND 4 VOTED THEIR PREFERENCE FOR AN INDEPENDENT PUERTO RICAN NATION THERE WAS LITTLE SURPRISE IN VOTERS' REJECTION OF THE INDEPENDENCE OPTION IN NO OPINION POLL IN THE PAST DECADE HAS FULL AUTONOMY EVER GOTTEN MORE THAN SINGLEDIGIT SUPPORT FOR MORE THAN 40 YEARS LIVING IN PUERTO RICO HAS MEANT LIVING UNDER TWO FLAGS CARRYING A US PASSPORT AND PAYING NO US INCOME TAXES FIGHTING IN THE US ARMED FORCES AND HAVING NO VOTE IN CONGRESS PARTICIPATING IN REPUBLICAN AND DEMOCRATIC PRIMARIES BUT HAVING NO RIGHT TO VOTE FOR PRESIDENT FOR THAT PERIOD OF TIME AT LEAST BEING A PATRIOTIC PUERTO RICAN HAS BEEN FOR MANY AN EXERCISE IN QUASIDEPENDENT POLITICAL AND CULTURAL SCHIZOPHRENIA IN ALL THAT TIME VOTERS WERE UNANIMOUS ON ONLY ONE THING WHILE POLITICAL STATUS MAY BE IMPORTANT TO POLITICIANS AND HISTORIANS OF COLONIALISM IT WAS NOT THE MOST IMPORTANT CHALLENGE FACING THE ISLAND THAT DISTINCTION WAS SHARED BY HIGH LEVELS OF PUBLIC CONCERN ABOUT CRIME DRUG AND GANG VIOLENCE UNEMPLOYMENT LEVELS OFTEN DRIFTING ABOVE 20 AND A HOST OF OTHER EVERYDAY PROBLEMS AS A RESULT OF THESE CONCERNS GOV ROSSELLO'S APPEAL WAS BUILT NOT ON HIS ADVOCACY OF STATEHOOD BUT ON SENDING NATIONAL GUARD TROOPS INTO THE MOST DRUGINFESTED PUBLIC HOUSING PROJECTS INITIATING AN EXPERIMENT IN PUBLIC SCHOOL VOUCHERS OVER THE VEHEMENT OBJECTION OF POWERFUL TEACHER UNIONS AND OTHER BOLD PROJECTS HOWEVER WHILE EARNING HIM CONSISTENTLY HIGH RATINGS IN PUBLIC OPINION PERFORMANCE SCORES HIS ORDERLY ATTACKS ON PRESSING LOCAL PROBLEMS NEVER TRANSFERRED INTO SUPPORT FOR HIS QUEST FOR STATEHOOD IN FACT THE PLEBISCITE CAMPAIGN DID NOT EVEN FEATURE GOV ROSSELLO AS A CENTRAL PLAYER HE APPEARED TO LACK THE TASTE FOR BOMBAST REQUIRED FOR THE BATTLE PROSTATEHOOD COMMERCIALS FEATURED FORMER GOVERNORS AND EVEN FORMER PRESIDENTS BUSH REAGAN AND FORD INSTEAD OF THE CURRENT OCCUPANT OF THE EXECUTIVE PALACE NOMINALLY THE ISLAND'S STATEHOOD SPOKESMAN ALSO GOV ROSSELLO AND OTHERS IN HIS NEW PROGRESSIVE PARTY SWALLOWED SOME BITTER ECONOMIC REALITIES THAT TARNISHED THE PURITY OF THEIR STATEHOOD POSTURE IN THE FACE OF THE CLINTON BUDGET PACKAGE EARLIER THIS YEAR THEY SOUGHT THE PRESERVATION OF KEY JOBCREATING FEATURES OF SECTION 936 OF THE US TAX CODE WHICH ALLOWS PUERTO RICO TO BE ESPECIALLY ATTRACTIVE TO US MANUFACTURING PLANTS THAT MOVE APPARENTLY DID NOT HALT THE IMPACT OF ANTISTATEHOOD TELEVISION SPOTS THAT SHOWED THE JOBS REPRESENTED BY SEC 936 BEING LOWERED INTO A GRAVE AT A CEREMONY ATTENDED BY TEARFUL PUERTO RICANS IN THE END WHILE MORE PUERTO RICANS THAN EVER BEFORE VOTED IN FAVOR OF STATEHOOD THE PLURALITY DECIDED ESSENTIALLY NOT TO DECIDE OLDER POORER AND MORE RURAL VOTERS ESPECIALLY UNCERTAIN WHETHER FOOD STAMPS AND OTHER TRANSFER BENEFITS WOULD STILL COME THEIR WAY OR WHETHER STATEHOOD WOULD REQUIRE THEM TO PAY HIGHER TAXES VOTED TO KEEP THINGS AS THEY WERE IN EXIT POLLS CONDUCTED ON SUNDAY 44 OF VOTERS WHO CAST BALLOTS FOR STATEHOOD EXPLAINED THEIR CHOICE BY CITING PROGRESS FOR PUERTO RICO OR THE ECONOMIC BENEFITS OF STATEHOOD BY CONTRAST THE MOSTOFTEN OFFERED EXPLANATIONS CITED BY 43 OF VOTERS WHO MARKED THEIR BALLOTS FOR COMMONWEALTH WERE KEEPING OUR PUERTO RICAN IDENTITY AND KEEPING THINGS AS THEY ARE FINALLY A PLURALITY OF VOTERS CONFESSED NOT ALTOGETHER PROUDLY TO A PREFERENCE FOR A DEPENDENT RELATIONSHIP WITH THE US BENEATH THE SURFACE PUERTO RICANS DETECTED AN ALMOST AUDIBLE SIGH OF RELIEF COMING FROM WASHINGTON AFTER THE VOTE FEW MEMBERS OF THE US CONGRESS WANT TO DEAL WITH THE ECONOMIC AND CULTURAL IMPLICATIONS OF A STATEHOOD APPLICATION FROM A DARKSKINNED SPANISHSPEAKING ALREADY DEPENDENT ISLAND TERRITORY ONE WHICH WOULD HAVE AN ECONOMY CONSIDERABLY LESS POTENT THAN MISSISSIPPI'S AND WOULD BE IN ALMOST CERTAIN NEED OF NEW IV BOTTLES FILLED REGULARLY AT THE US TREASURY THIS AT LEAST WAS A PERCEPTION ASSUMED BY MANY ON THE ISLAND IN OTHER WORDS PETITIONING FOR STATEHOOD AND BEING TURNED DOWN ON THINLYVEILED RACIAL AND ECONOMIC GROUNDS WOULD BE WORSE THAN THE STATUS QUO THE CONGRESS MIGHT LOOK AT US AND SEE WELFARE LISTEN TO US AND HEAR SPANISH AND RATHER THAN SEE OUR POTENTIAL OR THE FACT THAT WE'VE BEEN LOYAL TO AMERICA FOR SO LONG THEY WOULD TURN US DOWN SAID ONE VOTER AFTER CASTING HER BALLOT FOR MAINTAINING COMMONWEALTH STATUS ON SUNDAY SO FOR NOW AT LEAST THE STATUS QUO BEING THE DEVIL THAT PUERTO RICANS ALREADY KNOW WON OUT OVER THE DEVIL THEY DON'T KNOW MR KAAGAN PRESIDENT OF A NEW YORKBASED FIRM HAS DIRECTED PUBLIC OPINION SURVEYS FOR THE PUERTO RICAN DAILY EL NUEVO DIA FOR THE PAST 10 YEARS 9311190036 931119 BUSINESS BRIEF NEIMAN MARCUS GROUP INC RETAILER POSTS 5 DECLINE IN PROFIT FOR FIRST QUARTER NEIMAN MARCUS GROUP INC NEWTON MASS CITING WEAK SALES AT ITS CONTEMPO CASUALS STORES REPORTED A 5 DECLINE IN FIRSTQUARTER NET INCOME ON A 6 REVENUE INCREASE FOR THE QUARTER ENDED OCT 30 NEIMAN EARNED 152 MILLION OR 21 CENTS A SHARE IN THE YEARAGO QUARTER THE SPECIALTY RETAILER HAD NET INCOME OF 16 MILLION OR 24 CENTS A SHARE AFTER AN 112 MILLION ACCOUNTING ADJUSTMENT AND A 122 MILLION GAIN FROM LITIGATION REVENUE FOR THE QUARTER WAS 5076 MILLION COMPARED WITH 479 MILLION IN THE YEARAGO PERIOD NEIMAN SAID ITS CONTEMPO CASUALS STORES RECORDED AN OPERATING LOSS IN THE QUARTER COMPARED WITH BREAKEVEN RESULTS LAST YEAR ON DECLINING REVENUE OPERATING EARNINGS AT BERGDORF GOODMAN ALSO DECLINED FROM LAST YEAR DUE TO HIGHER MARKDOWNS AND SELLING EXPENSES THE COMPANY SAID OPERATING EARNINGS AT THE NEIMAN MARCUS DIVISION WHICH INCLUDES THE NM DIRECT MAIL ORDER BUSINESS ROSE SUBSTANTIALLY DUE IN PART TO EXTENSIVE RENOVATIONS AND NEW PROMOTIONS 9311190035 931119 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON TURNS TO COMBATING CRIME AS A PRIORITY AFTER WINNING THE TRADE PACT BOTH THE PRESIDENT AND HIS WIFE STRESS TO AIDES THAT THEY WANT TO DO MORE TO ADDRESS WIDESPREAD FEAR OF VIOLENT CRIME THEY CONTEMPLATE A CRIME SUMMIT AT WHICH EXPERTS AND CITIZENS TALK TO CLINTON AND A TV AUDIENCE ABOUT THE PROBLEM GORE SAYS CLINTON WAS DEEPLY MOVED BY A NEWS STORY ABOUT INNERCITY YOUTHS PLANNING THEIR FUNERALS BESIDES THE PENDING CRIME BILL THE WHITE HOUSE CONSIDERS A NEW ANTIVIOLENCE PROPOSAL CLINTON ALSO WILL SEEK TO PROVIDE MORAL LEADERSHIP BY SPEAKING OUT ON THE ISSUE SAYS WHITE HOUSE POLLSTER STAN GREENBERG PUBLIC CONCERN OVER CRIME RISES IN POLLS AS ANXIETY ABOUT THE ECONOMY EASES SOMEWHAT THE WHITE HOUSE'S RAHM EMANUEL MAY BE GIVEN A LEADING ROLE IN PROMOTING CLINTON'S ANTICRIME EFFORTS AS A REWARD FOR HIS WORK ON NAFTA GORE GAINS ADDED DUTIES AFTER HIS KEY ROLE IN THE TRADE VOTE THE VICE PRESIDENT GETS MORE ACTIVE IN FOREIGN POLICY HIS DEBATE PERFORMANCE LANDS HIM A PLUM CLINTON WILL SEND HIM TO MEXICO WEDNESDAY FOR TALKS WITH PRESIDENT SALINAS ABOUT POLICIES UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT NEXT MONTH HE JETS TO RUSSIA FOR A WEEK OF TALKS ON SPACE AND TECHNOLOGY CLINTON CONSIDERS ASSIGNING GORE TO BRING STABILITY TO HIS SHAKY FOREIGN POLICY TEAM ON DOMESTIC ISSUES GORE HEADS A GROUP THAT IS REDESIGNING FEDERAL ANTIPOVERTY PROGRAMS WITH AN EMPHASIS ON CURBING URBAN VIOLENCE WITH HIS NAFTA DEBATE SHOWING GORE DID THE DEMOCRATIC PARTY A FAVOR IN A WAY THAT FEW VICE PRESIDENTS HAVE SAYS DEMOCRATIC LEADERSHIP COUNCIL PRESIDENT AL FROM MORE TENSIONS RATHER THAN COOPERATION FOLLOW THE TRADE VOTE IN CONGRESS ANTINAFTA REP RUSH OF ILLINOIS SAYS LIBERAL DEMOCRATS WILL BE MORE VIGILANT IN GAUGING WHITE HOUSE INTENTIONS UNION LEADERS VOW REVENGE ON DEMOCRATS WHO BACKED THE TRADE PACT LIKELY TARGETS INCLUDE MARYLAND REP HOYER NEW YORK'S LOWEY AND FLAKE AND CALIFORNIA'S PELOSI AND TORRES WE'LL REMEMBER WHO WAS WITH US AND WHO WAS AGAINST US ON THIS ISSUE SAYS THE TEXTILE WORKERS' JOANN MORT REPUBLICANS ROUND UP SUPPORT FOR DEEPER BUDGET CUTS THAN CLINTON WANTS A REVISED VERSION OF THE PLAN OFFERED BY THE GOP AND CONSERVATIVE DEMOCRATS RATCHETS UP MEDICARE CUTS ANOTHER 45 BILLION THE ADMINISTRATION WILL FIGHT SUCH CUTS AS A THREAT TO HEALTHCARE REFORM CLINTON ALLIES SEEK MORE POWER OVER A SENATE HEALTH BILL FOR KENNEDY WHO IS CONSIDERED MORE SYMPATHETIC TO THE PRESIDENT'S PLAN THAN MOYNIHAN WHAT TRADE DEAL THE DEMOCRATIC NATIONAL COMMITTEE TRYING TO STAY OUT OF THE PARTY'S INTERNAL FIGHT OVER THE NAFTA FAILED TO EVEN NOTE THE RAGING DEBATE IN ITS DAILY BRIEFINGS TO ALLIES THIS WEEK INSTEAD ONE TOP HEADLINE WAS PRESIDENT CLINTON SIGNS RELIGIOUS FREEDOM RESTORATION ACT TEMPORARY HELP WHITE HOUSE NOMINATIONS FOR THE TRAFFIC SAFETY AGENCY TAKE SO LONG THAT THE FRONTRUNNERS FOR THE TWO TOP POSTS TAKE NEW JOBS PENDING FINAL ACTION RICHARD MARTINEZ LIKELY TO BE NAMED THE AGENCY'S HEAD JOINS EMORY UNIVERSITY'S CENTER FOR INJURY CONTROL IN ATLANTA CHRISTOPHER HART JOINED A WASHINGTON AVIATIONLAW FIRM HEALTH HELP NEW YORK LAWYER HAROLD ICKES IS THE TOP CONTENDER TO HEAD THE SELLING OF CLINTON'S HEALTHCARE PLAN IRA MAGAZINER WOULD STILL RUN POLICY ICKES'S WHITE HOUSE PASS WAS REVOKED EARLIER AFTER IT BECAME PUBLIC THAT HE LOBBIED FOR PUERTO RICO ON AN ISSUE BACKED BY A MAJOR FOE TO CLINTON'S PLAN PHARMACEUTICAL FIRMS UKRAINE IRKS ADMINISTRATION OFFICIALS AFTER SECRETARY OF STATE CHRISTOPHER OFFERED 330 MILLION IN AID LAST MONTH UKRAINE PROMISED TO GIVE UP ITS NUCLEAR WEAPONS NOW ANGRY US OFFICIALS HEAR UKRAINE PRESIDENT KRAVCHUK IS TELLING A DIFFERENT STORY IN EUROPE THEY PONDER WHETHER SOME QUIET ARMTWISTING MAY BE CALLED FOR CLINTON FACES A DECISION ON A BUDGET DOGFIGHT WITH THE PENTAGON WHITE HOUSE AIDES CAN'T FUND THE PRESIDENT'S INVESTMENT PRIORITIES IN NEXT YEAR'S BUDGET IF THE PENTAGON GETS WHAT CLINTON PLEDGED WHEN HE ENDORSED DEFENSE CHIEF ASPIN'S PLAN TO RESHAPE THE MILITARY CONGRESS CAPPED DEFENSE AND DOMESTIC SPENDING AT 15 BILLION LESS THAN THE WHITE HOUSE EXPECTED AND ADVISERS LIKELY WILL URGE CLINTON TO MAKE THE PENTAGON ABSORB MUCH OF IT ASPIN PREPARES TO MAKE A PITCH TO CLINTON IN THE NEXT COUPLE OF WEEKS TO STICK TO HIS REORGANIZATION PLAN ASPIN AIDES WORRY THAT DEEPER DEFENSE CUTS COULD FURTHER WORSEN CLINTON'S RELATIONS WITH THE MILITARY SENATE ARMED SERVICES CHAIRMAN NUNN MET WITH CLINTON YESTERDAY TO DISCUSS THE ISSUE SOME IN THE AIR FORCE HOPE A REVIEW OF ASPIN'S PLAN WOULD RESULT IN MORE CUTS FOR THE NAVY PERHAPS IN ITS 55 ATTACK SUBMARINES MINOR MEMOS COMEDIAN MARK RUSSELL CREDITS HOUSE PASSAGE OF NAFTA TO A WHITE HOUSE TOLLFREE HOTLINE 1800PORK JAY LENO SAYS NAFTA LOSER PEROT WILL RENAME HIS GROUP UNITED I STAND WHITE HOUSE NAFTA COORDINATOR WILLIAM DALEY SON OF THE LATE CHICAGO MAYOR SAYS OF NEW JERSEY'S WALKINGAROUNDMONEY FLAP I KNOW NO ONE IN CHICAGO WHO EVER PAID SOMEONE NOT TO VOTE 9311190034 931119 BUSINESS BRIEF GENERAL MOTORS CORP AUTO MAKER HALTS THE SALE OF ALLISON TRANSMISSION UNIT GENERAL MOTORS CORP SAID IT IS HALTING THE PROPOSED 525 MILLION SALE OF ITS ALLISON TRANSMISSION DIVISION TO ZF FRIEDRICHSHAFEN AG OF GERMANY GM ANNOUNCED ITS DECISION AFTER LEARNING THAT THE US JUSTICE DEPARTMENT HAD SUED TO BLOCK THE SALE ARGUING IT VIOLATED ANTITRUST LAWS GM HAD HOPED TO SELL THE UNIT WHICH MANUFACTURES HEAVYDUTY TRANSMISSIONS FOR BUSES AND TRUCKS AS PART OF ITS CONTINUING EFFORT TO SHED OPERATIONS THAT FALL OUTSIDE OF ITS CORE AUTOMOTIVE BUSINESSES HOWEVER THE JUSTICE DEPARTMENT FEARED THE SALE WOULD GIVE ZF FRIEDRICHSHAFEN A DOMINANT 78 SHARE OF THE MARKET FOR HEAVYDUTY AUTOMATIC TRANSMISSIONS AND THAT IT WOULD MEAN HIGHER COSTS FOR PUBLIC TRANSPORTATION CONSUMERS IN A STATEMENT WILLIAM E HOGLUND GM'S EXECUTIVE VICE PRESIDENT SAID THE ALLISON TRANSMISSION DIVISION WHICH EMPLOYS 4300 PEOPLE WOULD BE GIVEN AN OPPORTUNITY TO DEVELOP A PLAN TO MAKE THE UNIT MORE COMPETITIVE 9311190033 931119 DELAWARE JUDGE REQUESTS INFORMATION ON PARAMOUNT A DELAWARE JUDGE SOUGHT MORE INFORMATION ABOUT A PARAMOUNT COMMUNICATIONS INC BOARD MEETING LAST MONDAY INDICATING HE PROBABLY WON'T MAKE A RULING BEFORE MONDAY IN THE PARAMOUNT TAKEOVER BATTLE IN A CONFERENCE CALL LATE YESTERDAY LAWYERS FOR ENTERTAINMENT AND PUBLISHING CONCERN PARAMOUNT AND ITS INTENDED MERGER PARTNER CABLETELEVISION COMPANY VIACOM INC AGREED TO PROVIDE THE INFORMATION OVER THE WEEKEND TO VICE CHANCELLOR JACK JACOBS OF DELAWARE CHANCERY COURT WHO IS HEARING A REQUEST FOR AN INJUNCTION AGAINST THAT MERGER BY RIVAL BIDDER QVC NETWORK INC A HOMESHOPPING COMPANY THE TIMING OF THE RULING WHICH IS LIKELY TO BE APPEALED MEANS THAT MANY SHAREHOLDERS MUST DECIDE WHETHER TO TENDER THEIR SHARES TO VIACOM WHOSE OFFER EXPIRES AT MIDNIGHT MONDAY WITHOUT KNOWING WHETHER THE OFFER WILL BE ENJOINED PARAMOUNT STOCK HAS DECLINED IN RECENT WEEKS FROM 8350 TO A CLOSING PRICE YESTERDAY OF 77 A SHARE DOWN 50 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9311190032 931119 NAFTA THE ROAD AHEAD CITIES CLUSTERED ON MEXICO/US BORDER WILL BE MOST VISIBLY AFFECTED BY PACT BY WALL STREET JOURNAL REPORTERS FREDERICK ROSE IN LOS ANGELES SCOTT MCCARTNEY IN DALLAS AND CALEB SOLOMON IN HOUSTON WHILE THE BATTLE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT FOCUSED ON WASHINGTON NAFTA'S EVENTUAL OUTCOME LARGELY WILL BE PLAYED OUT ALONG 2000 MILES OF FORBIDDING DESERT AND RIVER COUNTRY THAT JOINS THE US AND MEXICO NO PLACE WILL BE MORE VISIBLY AFFECTED BY THE PACT IN DAYTODAY LIFE THAN THE FIVE CLUSTERS OF CITIES HUNKERED ALONG THE BORDER SAY ANALYSTS AND RESIDENTS CHANGES WILL BE AS IMMEDIATE AS LOCAL BUSINESSES OPENING NEW OFFICES ACROSS THE BORDER AND AS LONGTERM AS DISADVANTAGED MEXICAN CITIES GROWING IN STATURE ALREADY CLOSELY INTERTWINED THE FUTURES OF CITIES RUNNING WEST FROM BROWNSVILLE TEXAS AND ITS MEXICAN TWIN MATAMOROS TO SAN DIEGO AND GIANT TIJUANA WILL BECOME INCREASINGLY FUSED THE BORDER ZONE IS THE ONE THAT WILL MOST IMMEDIATELY BENEFIT FROM NAFTA SAYS TOM MILLER AUTHOR OF ON THE BORDER A STUDY OF THE REGION BUT WHILE THE REGION AS A WHOLE IS EXPECTED TO BENEFIT ENORMOUSLY THERE WILL OF COURSE BE WINNERS AND LOSERS ON BOTH SIDES ALREADY SIGNS OF WHO WILL END UP IN EACH CAMP ARE EMERGING WE ARE AT A MAJOR TURNING POINT ON THE BORDER SAYS CHARLES NATHANSON DIRECTOR OF SAN DIEGO DIALOGUE A REGIONAL PLANNING ORGANIZATION AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO THAT HAS BEEN LEADING THE MOVEMENT FOR CLOSER TIES WITH TIJUANA IT'S EXPECTED THAT OVER TIME THE GENERALLY POORER AND MORE POPULOUS MEXICAN CITIES WILL COME CLOSER OR CATCH UP TO THE ECONOMIES OF THEIR US COUNTERPARTS IT'S A STRANGE THING SAYS JEANE ECHOLS PRESIDENT OF A CENTURY 21 REALESTATE BROKERAGE FIRM IN BROWNSVILLE BUT HERE WE'RE MORE RELATED TO THE MEXICAN ECONOMY THAN THE US ECONOMY WE FEEL THAT MEXICO IS GOING TO BE BETTER OFF AFTER NAFTA AND IF MEXICO IS BETTER OFF WE'RE BETTER OFF MS ECHOLS SAYS SHE SAYS NEW CONSTRUCTION BOTH RESIDENTIAL AND COMMERCIAL IS UP ON BOTH SIDES OF THE BORDER AND SAYS SHE BELIEVES NAFTA'S PASSAGE WILL SPARK EVEN MORE BUILDING FIFTY MILES WEST ALONG THE RIO GRANDE IN REYNOSA MEXICO ACROSS FROM MCALLEN TEXAS GERARDO VASQUEZ DIRECTOR OF THE CITY'S CENTURY 21 FRANCHISE SAYS HE EXPECT'S NAFTA'S PASSAGE TO BOOST REYNOSA'S FORTUNES MCALLEN'S ECONOMY IS A LOT BETTER THAN REYNOSA'S HE SAYS BUT THAT COULD CHANGE IN THE SHORT RUN HOWEVER MR VASQUEZ SAYS REYNOSA HAS A WAREHOUSE GLUT THAT HAS DRIVEN COMMERCIAL REALESTATE PRICES AND RENTS DOWN AS MUCH AS 10 IN RECENT MONTHS PEOPLE WERE WAITING FOR NAFTA HE ADDS IN EL PASO TEXAS COMMERCIAL REALESTATE BROKER BOB KELLER SAYS HE HAS BEEN DOING BUSINESS IN MEXICO FOR SEVERAL YEARS THE ANTICIPATION OF NAFTA HE SAYS ALREADY HAS BOLSTERED A BOOM THAT HE EXPECTS TO CONTINUE DEMAND WILL WORK BOTH WAYS SAYS MR KELLER US COMPANIES ARE GOING TO BE LOOKING FOR REAL ESTATE IN MEXICO AND MEXICAN COMPANIES ARE GOING TO BE COMING THIS WAY ALREADY THE INDUSTRIAL VACANCY RATE IN CIUDAD JUAREZ THE SPRAWLING MEXICAN CITY IMMEDIATELY ACROSS THE RIO GRANDE FROM EL PASO IS A MERE 36 RIGHT NOW EL PASO IS HARDLY MORE ACCOMMODATING WITH A 37 VACANCY RATE THE BORDER TOO MAY BECOME THE FIRST BATTLEGROUND FOR SERVICES THAT ARE INCREASINGLY OPEN TO BUSINESSES ON BOTH SIDES IN BANKING US INSTITUTIONS ARE EXPECTED TO POUR INTO PREVIOUSLY FORBIDDEN MEXICAN TERRITORY BUT THE BORDER REGION MAY OFFER INTERESTING NICHE OPPORTUNITIES FOR MEXICAN INSTITUTIONS ROBERTO HERRERA SUBDIRECTOR OF THE CIUDAD JUAREZ OFFICE OF BANCO UNION SA A MEXICO CITYBASED BANK SAYS HIS COMPANY HAS BEEN STUDYING US BANKING OPERATIONS IN ANTICIPATION OF GREATER COMPETITION BECAUSE OF NAFTA US BANKS MR HERRERA SAYS WILL LIKELY GO AFTER BIGBUSINESS CUSTOMERS BANCO UNION HE SAYS THINKS SMALL BUSINESS AND RETAIL CUSTOMERS ARE IMPORTANT TO RETAIN AND CAPTURE SO BANCO UNION IS CONSIDERING EXPANSION INTO TEXAS AND HAS ALREADY BEGUN ALTERING OPERATIONS TO PREPARE FOR SHARPER RIVALRY OFFERING LONGER HOURS AND INSTALLING BETTER TECHNOLOGY SUCH AS AUTOMATIC TELLER MACHINES WE EXPECT TO HAVE TO IMPROVE OUR SERVICE TO STAY COMPETITIVE HE SAYS US SERVICE FIRMS ALSO ARE EXPANDING ON THE OTHER SIDE OF THE BORDER GRAY CARY AMES & FRYE A MAJOR SAN DIEGO LAW FIRM HAS JUST ACQUIRED A SMALL LAW FIRM IN TIJUANA AND HAS OPENED AN OFFICE IN MEXICO CITY SAYS GUILLERMO MARRERO THE PARTNER IN CHARGE OF THE BUSINESS WHILE THIS LIKELY WOULD HAVE HAPPENED WITHOUT THE POTENTIAL OF NAFTA THE PACT HELPS PRIMARILY TO MODIFY THE THINKING OF COMPANIES THAT HAVE BEEN ON THE FENCE HE ADDS THAT'S JUST THE WORRY IN EL PASO'S APPAREL BUSINESS WHERE LOCALS ARE GEARING UP FOR A LOSS IN MANUFACTURING JOBS AN EXODUS THAT BEGAN IN 1980 FEARING THAT A CHUNK OF THE 15000 APPAREL JOBS EQUALING 40 OF THE TOTAL MANUFACTURING BASE MAY MOVE TO MEXICO THE UNIVERSITY OF TEXAS AT EL PASO AND OTHERS IN THE COMMUNITY ESTABLISHED AN APPAREL WORKERS' RETRAINING PROGRAM THIS SUMMER IN AN EFFORT TO BOOST PRODUCTIVITY THERE ARE THOSE HOWEVER WHO ARGUE THAT MANUFACTURING ON BOTH SIDES OF THE BORDER WILL BENEFIT BY CLOSER INTEGRATION USING GENERALLY HIGHER US PRODUCTIVITY AND LOWER MEXICAN LABOR COSTS AS APPROPRIATE WITH NAFTA'S GUIDELINES ETCHED IN LAW WE'LL BE ABLE TO PLAN FURTHER INTO THE FUTURE BECAUSE WE'LL KNOW WHAT THE RULES AND REGULATIONS ARE GOING TO BE SAYS MARY ALICE ACEVEDO DIRECTOR OF INTERNATIONAL RELATIONS AT SAN DIEGOBASED CAL STATE LUMBER SALES INC WHICH HAS SUBSTANTIAL SALES AND PRODUCTION OPERATIONS ON BOTH SIDES OF THE BORDER MRS ACEVEDO SAYS THAT EVEN WITH NAFTA CAL STATE IS PLANNING A MAJOR LUMBER MILLING EXPANSION IN RENO NEVADA USING HIGHTECHNOLOGY EQUIPMENT THIS IS THE PART OF NAFTA THAT EVERYONE SEEMS TO FORGET ABOUT I CALL IT THE T WORD' FOR TECHNOLOGY SHE ADDS WITH NAFTA'S PASSING THERE ARE SIGNS THAT US AND MEXICAN CITIES MAY MARKET THEMSELVES JOINTLY SAN DIEGO AND TIJUANA TRADE OFFICIALS FOR INSTANCE PLAN A COMBINED SALES TRIP SOON TO PITCH THE COMBINED REGION TO ASIAN INVESTORS SUCH STEPS WERE MOST UNLIKELY EVEN RECENTLY IN PART IT'S THE PRODUCT OF HARD TIMES SAN DIEGO PSYCHOLOGICALLY IS READY FOR THIS IN A WAY THAT IT WASN'T WHEN IT COULD SIT BACK AND WATCH REALESTATE PRICES RISE AND BILLIONS OF DOLLARS OF DEFENSE MONEY COME IN SAYS MR NATHANSON OF SAN DIEGO DIALOGUE OTHER FACETS OF BORDER LIFE ARE CHANGING TOO IN RECENT YEARS MEXICAN SHOPPERS HAVE ACCOUNTED FOR A GROWING PORTION OF RETAIL TRADE IN US BORDER CITIES MEXICAN SHOPPERS ACCOUNT FOR SOME 70 OF TRADE AT A GIANT PRICE CO RETAIL OUTLET BARELY A DOZEN MILES FROM THE BORDER NEAR SAN DIEGO EVENTUALLY AS MEXICO'S ECONOMY IMPROVES A BLOSSOMING OF RETAIL TRADE IS EXPECTED SOUTH OF THE BORDER ALL ALONG THE BORDER BUSINESSES ASSUME NAFTA WILL MEAN FEWER MEXICAN SHOPPERS CROSSING TO BUY CLOTHES FOOD AND APPLIANCES NOT AVAILABLE AT HOME AT GILBERT'S A SMALL CHAIN OF WOMEN'S CLOTHING STORES IN EL PASO IT'S TOO LATE TO WORRY ABOUT THE IMPACT OF NAFTA GILBERT'S IS ALREADY GOING OUT OF BUSINESS IT'S LIQUIDATING NOW AND CLOSING ITS STORES BY NOV 30 THERE ARE NEW MALLS OPENING IN JUAREZ AND WE'VE ALREADY LOST A LOT OF MEXICAN CUSTOMERS SAYS THERESA YANEZ BOOKKEEPER AT GILBERT'S DOWNTOWN EL PASO STORE 9311190031 931119 MORE BOND HOUSES JOIN BAN ON POLITICAL GIFTS WASHINGTON MORE FIRMS ARE JOINING 17 MAJOR BOND HOUSES IN AGREEING TO A VOLUNTARY BAN ON THE USE OF POLITICAL GIFTS TO INFLUENCE THE AWARDING OF MUNICIPALBOND BUSINESS IT'S APPARENTLY AT LEAST THE GROUP OF 24' NOW SAID ONE PERSON FAMILIAR WITH THE PROCESS THE INITIATIVE WAS UNVEILED AT A NEWS CONFERENCE THIS FALL BY SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT AND PRIMERICA CORP VICE CHAIRMAN FRANK ZARB WEDNESDAY SEC COMMISSIONER RICHARD ROBERTS URGED A CLOSEDDOOR GATHERING OF 51 REGIONAL MUNICIPALBOND DEALERS IN CHICAGO TO JOIN THE BAN AFTERWARD HE SAID REACTION WAS MIXED THE RECEPTION FROM SOME FIRMS A GOOD PORTION WAS VERY FAVORABLE HE SAID CALLING THE REACTION OF OTHERS MUTED THE CHICAGO SESSION WAS ORGANIZED BY THE PUBLIC SECURITIES ASSOCIATION A BOND TRADE GROUP AFTER MR LEVITT URGED VARIOUS MUNIMARKET PARTICIPANTS TO CONSIDER ADOPTING THE PRINCIPLES OF THE BAN THE PSA WON'T REVEAL THE NAMES OF FIRMS PARTICIPATING IN THE BAN AND THE SEC DOESN'T WANT TO EITHER APPARENTLY TO AVOID BEING SEEN AS TAKING OVER WHAT IS BILLED AS AN INDUSTRY INITIATIVE 9311190030 931119 CLINTON SAID TO ALLOW SALE OF SUPERCOMPUTER TO CHINA SEATTLE AP THE CLINTON ADMINISTRATION ACTING ON A LONGSTANDING REQUEST HAS DECIDED TO SELL CHINA A SUPERCOMPUTER TO HELP IN FORECASTING NATURAL DISASTERS US OFFICIALS SAID TENTATIVELY APPROVED AS WELL IS SALE OF POWER TURBINES FOR NUCLEAR GENERATORS THE OFFICIALS SAID HOWEVER WHILE THE SUPERCOMPUTER MANUFACTURED BY CRAY RESEARCH INC AND VALUED ABOUT 8 MILLION IS A DONE DEAL SALE OF THE TURBINES WILL DEPEND ON CHINA SHOWING A WILLINGNESS TO RESPOND TO US CONCERNS IN SEVERAL AREAS ONE OF THE OFFICIALS SAID THE US WANTS IMPROVED TREATMENT OF POLITICAL DISSIDENTS CURBS ON PRISON LABOR AND TRADE PRACTICES THAT OPEN CHINESE MARKETS TO US GOODS THE MOVE CAME TO LIGHT AS PRESIDENT CLINTON PREPARED TO MEET WITH CHINESE PRESIDENT JIANG ZEMIN FOR TRADE TALKS 9311190029 931119 WHO'S NEWS APPOINTMENTS OF HOLUM TULL ARE CLEARED FOR CFTC WASHINGTON THE SENATE AGRICULTURE COMMITTEE UNANIMOUSLY APPROVED TWO APPOINTEES TO THE COMMODITY FUTURES TRADING COMMISSION FILLING SEATS VACATED IN AUGUST AND JANUARY THE APPOINTEES BARBARA PEDERSEN HOLUM OF ANNAPOLIS MD AND JOHN E TULL JR OF LONOKE ARK JOIN TWO REPUBLICAN INCUMBENTS AT THE CFTC MS HOLUM 51 YEARS OLD FORMERLY SERVED AS THE TOP CONGRESSIONAL LIAISON AT THE CFTC SINCE 1981 SHE HAS BEEN PRESIDENT OF THE NATIONAL AGRICULTURAL LAND CENTER A NONPROFIT CONSERVATION PROGRAM MR TULL 68 OWNS AND OPERATES A FARMING CONCERN IN ARKANSAS THE RECENT NOMINATIONS OF THE TWO NEW COMMISSIONERS WERE THE FIRST SIGNS OF INTEREST THE CLINTON ADMINISTRATION HAS SHOWN IN THE CFTC THE COMMISSION DEALS WITH SOME OF THE THORNIEST INVESTMENT PRODUCTS ON THE MARKET INCLUDING FUTURES CONTRACTS INTERESTRATE SWAPS AND DERIVATIVES SO NAMED BECAUSE THEIR VALUES DERIVE FROM OTHER SECURITIES THE CFTC CHAIRMAN'S SEAT HAS BEEN VACANT SINCE REPUBLICAN APPOINTEE WENDY GRAMM LEFT IN JANUARY IT ISN'T EXPECTED TO BE FILLED UNTIL NEXT YEAR 9311190028 931119 OECD SAYS FED SHOULD AND WILL RAISE SHORTTERM INTEREST RATES IN NEXT YEAR BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT IN ITS ANNUAL REVIEW OF THE US ECONOMY SAID THE FEDERAL RESERVE SHOULD AND WILL BOOST SHORTTERM INTEREST RATES BY ABOUT 1 1/2 PERCENTAGE POINTS OVER THE NEXT YEAR OR SO THE FED HAS BEEN HOLDING THE SHORTTERM INTEREST RATES IT CONTROLS AT ABOUT 3 OR CLOSE TO ZERO AFTER ADJUSTING FOR INFLATION THE OECD CALCULATED THAT SHORTTERM INTEREST RATES OVER THE PAST 30 YEARS HAVE AVERAGED ABOUT 1 1/4 PERCENTAGE POINTS ABOVE THE INFLATION RATE SO IT EXPECTS THE FED TO INCREASE SHORTTERM RATES TO ABOUT 4 1/2 BY THE END OF NEXT YEAR PETER JARRETT CHIEF OF THE US DESK AT THE 24NATION ORGANIZATION BASED IN PARIS SAID THE AGENCY'S ASYETUNRELEASED FORECAST SHOWS SHORTTERM RATES CLIMBING TOWARD 5 IN 1995 AND THEN DECLINING IN 1996 THE CURRENT NEARZERO LEVEL OF REAL OR INFLATIONADJUSTED SHORTTERM INTEREST RATES IS NOT UNUSUAL FOR A PERIOD EARLY IN A BUSINESSCYCLE EXPANSION BUT IT IS CLEARLY UNSUSTAINABLE THE AGENCY SAID ECHOING COMMENTS FED CHAIRMAN ALAN GREENSPAN MADE EARLIER THIS YEAR THE OECD IS MORE OPTIMISTIC THAN SOME FORECASTERS ABOUT THE INFLATION TREND ARGUING THAT THERE IS GOOD REASON TO EXPECT INFLATION TO REMAIN BELOW 3 BUT MR JARRETT SAID THE OECD EXPECTS THE US ECONOMY TO BE OPERATING CLOSE TO CAPACITY BY EARLY1995 MONETARY POLICY WORKS WITH A LAG HE NOTED TO AVOID THE RISK OF CREATING INFLATIONARY PRESSURES THE FED SHOULD AND PROBABLY WILL BEGIN TO RAISE INTEREST RATES GRADUALLY AROUND THE TURN OF THE YEAR HE SAID THE CLINTON ADMINISTRATION ALSO ANTICIPATES THAT THE FED WILL START RAISING INTEREST RATES NEXT YEAR BUT IT DOESN'T PREDICT AS SUBSTANTIAL AN INCREASE AS THE OECD REPORT SHOWS IN ITS REPORT THE OECD ALSO SAID PRESIDENT CLINTON'S DEFICITREDUCTION PROGRAM WON'T LICK THE DEFICIT PROBLEM THE FEDERAL DEFICIT IS STILL PROJECTED TO BE DISAPPOINTINGLY LARGE AT OVER 2 1/2 OF GROSS DOMESTIC PRODUCT IN 1997 THE REPORT SAID THE ORGANIZATION WARNED THAT UPPERINCOME TAXPAYERS MAY BE ABLE TO AVOID TAX INCREASES AIMED AT THEM IN THE DEFICITREDUCTION LAW SO THAT THE LAW MIGHT NOT RAISE AS MUCH REVENUE AS PREDICTED AND IT CALLED THE DECISION TO ABANDON MR CLINTON'S PROPOSED ENERGY TAX AN OPTION THE OECD HAS LONG FAVORED AS REGRETTABLE 9311190027 931119 TECHNOLOGY SOPHISTICATED' INTRUDER BREACHES INTERNET SECURITY STANFORD CALIF A COMPUTER INTRUDER OR CRACKER BREACHED SECURITY AT THE BAY AREA REGIONAL RESEARCH NETWORK OR BARRNET A MAJOR INTERNETSERVICES PROVIDER IN NORTHERN CALIFORNIA THE INTRUDER WHOM COMPANY OFFICIALS CHARACTERIZED AS VERY SOPHISTICATED WAS ABLE TO GAIN ACCESS TO FOUR BARRNET COMPUTERS CONNECTED TO THE INTERNET THE WORLDWIDE COMPUTER NETWORK THE PERSON WAS TRYING TO STEAL PASSWORDS THAT WOULD PERMIT ACCESS TO OTHER NETWORKS LINKED TO THE INTERNET BILL YUNDT BARRNET EXECUTIVE DIRECTOR SAID THE BREACH WAS VERY SERIOUS INDEED HOWEVER HE ADDED ONLY A SMALL PORTION OF OUR NETWORK WAS AFFECTED BARRNET PROVIDES INTERNET SERVICES TO MORE THAN 250 COMPANIES AND GOVERNMENT AND ACADEMIC INSTITUTIONS IN CALIFORNIA AND NEVADA ONCE ENGINEERS DISCOVERED THE BREACH THEY NOTIFIED NETWORKS THAT MIGHT BE AFFECTED MR YUNDT SAID AS WELL AS LAWENFORCEMENT OFFICIALS AND THE COMPUTER EMERGENCY RESPONSE TEAM A PITTSBURGHBASED ORGANIZATION THAT ASSISTS INTERNET COMPUTERNETWORK ADMINISTRATORS CERT AS A MATTER OF POLICY DOESN'T DISCUSS SPECIFIC INCIDENTS BARRNET IS ONE OF 18 REGIONAL INTERNET PROVIDERS IN THE US 9311190026 931119 BIG BOARD MEMBERS DEALING WITH PUBLIC POST 3RDPERIOD GAIN NEW YORK THE NEW YORK STOCK EXCHANGE SAID ITS FIRMS THAT DEAL WITH THE PUBLIC REPORTED A 59 RISE IN THIRDQUARTER NET INCOME THE BIG BOARD SAID THE FIRMS' EARNINGS ROSE TO 128 BILLION FROM THE YEAREARLIER 802 MILLION REVENUE ROSE 21 TO 1805 BILLION FROM THE YEAREARLIER 1497 BILLION THE EXCHANGE SAID THE FIRMS' AFTERTAX ANNUALIZED RETURN WAS 103 ON CAPITAL OF 5207 BILLION THAT COMPARED WITH THE YEAREARLIER RETURN OF 78 ON CAPITAL OF 4187 BILLION OF THE 305 FIRMS REPORTING RESULTS THE EXCHANGE SAID 255 POSTED PROFITS AMOUNTING TO 219 BILLION WHILE 50 REPORTED LOSSES WHICH TOTALED 215 MILLION THE BIG BOARD SAID MEMBER FIRMS' ASSETS ROSE TO 91670 BILLION SPECIALIST FIRMS WHICH HANDLE TRADES ON THE EXCHANGE BY MATCHING BUYERS AND SELLERS SAW A 34 INCREASE IN REVENUES TO 137 MILLION FROM 102 MILLION NET INCOME ROSE 72 TO 31 MILLION FROM 18 MILLION 9311190023 931119 LETTERS TO THE EDITOR SELFINFLICTED WOUNDS IN TRUCKING INDUSTRY WHILE JAMES BOVARD'S SLAP AT THE CLINTON THEORY REGARDING THE COMPETENCE OF THE FEDS TO OVERSEE ANYTHING IS CERTAINLY WARRANTED THE GREAT TRUCK ROBBERY EDITORIAL PAGE OCT 3 HIS ANALOGY IS SERIOUSLY FLAWED THE MOTOR CARRIER ACT OF 1980 A K A TED KENNEDY'S REVENGE DID NOT LARGELY DEREGULATE THE TRUCKING INDUSTRY LARGELY IT PUT AN END TO THE PRACTICE OF THE ICC BLESSING THE PASSTHROUGH OF TEAMSTER UNION WAGE AND BENEFIT INCREASES TO ALL TRUCKING USERS THIS ANTILABOR ACT ENABLED THE NONUNION TRUCKING COMPANIES TO PRICE THEIR SERVICES CLOSER TO THEIR COSTS AND MADE THE COLLECTIVE BARGAINING PROCESS IN THE INDUSTRY SOMETHING MORE THAN A POSTURING EXERCISE THE ACT DID NOT TOUCH THE ISSUE OF FILED RATES AND THE ONLY PEOPLE INJURED BY BALANCEDUE BILLINGS WERE THOSE WHO WERE AFFLICTED BY EUPHORIABASED LAZINESS OR THOSE WHO HAD NO IDEA OF WHAT THEY WERE DOING IN THE FIRST PLACE IF PEOPLE GAVE BUSINESS TO A COMPANY BASED ON A VENDOR'S FRAUDULENT ACTS THE INJURED SHOULD HAVE A PRIVATE FRAUD REMEDY IN THE COURTS IF THE PROBLEM STEMMED FROM LAZINESS OR IGNORANCE THE CONSEQUENCES SHOULD BE BORNE BY THE LAZY OR THE DUMB CONGRESS SHOULD HAVE BETTER THINGS TO DO WITH ITS TIME THAN AN ATTEMPT TO REMEDY SELFINFLICTED WOUNDS 9311190020 931119 WHO'S NEWS RICHARD GERSTNER TO BE PRESIDENT CHIEF OF TELULAR BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL RICHARD T GERSTNER WHOSE SUCCESSFUL IBM CAREER WAS CUT SHORT BY A BUNGLED MEDICAL DIAGNOSIS WILL LEAD A TINY ILLINOIS COMPANY THAT'S PUSHING PATENTED GEAR FOR BYPASSING WIRED TELEPHONE NETWORKS MR GERSTNER HAS AGREED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OF TELULAR CORP WILMETTE ILL THE COMPANY SAID THE MOVES ARE EFFECTIVE IMMEDIATELY TELULAR SYSTEMS LET STANDARD PHONES SUCH AS THOSE IN A HOME OR OFFICE HOOK DIRECTLY TO WIRELESS NETWORKS SUCH AS CELLULAR SYSTEMS MR GERSTNER WAS A RISING STAR AT INTERNATIONAL BUSINESS MACHINES CORP WHICH IS NOW HEADED BY HIS BROTHER LOUIS BEFORE A MYSTERIOUS BACK AILMENT LEFT HIM UNABLE TO WORK AT IBM RICHARD GERSTNER HEADED THE COMPANY'S VAST ASIAN BUSINESS AND LATER TOOK COMMAND OF ITS 8 BILLION GROUP THAT INCLUDED IBM'S PERSONAL COMPUTER BUSINESS BUT MR GERSTNER'S DOCTORS REMOVED SEVERAL OF THE DISKS IN HIS SPINE TO RELIEVE HIS DEBILITATING PAIN ONLY TO HAVE ANOTHER DOCTOR LATER DISCOVER THAT HE WAS ACTUALLY SUFFERING FROM LYME DISEASE TELULAR SAID IT CREATED A POST FOR MR GERSTNER AND NAMED JAMES PHILLIPS THE PRESIDENT OF ITS US BUSINESS TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT OF THE CORPORATION MR PHILLIPS THE FORMER PRESIDENT OF SKYTEL CORP JOINED TELULAR IN LATE 1992 AND REVAMPED ITS PRODUCT LINE TO MAKE IT MORE MARKETABLE TELULAR A CLOSELY HELD COMPANY RECENTLY SOLD 18 OF ITSELF TO MOTOROLA INC FOR AN UNDISCLOSED SUM JUMPING IN FRONT OF OTHER POTENTIAL RIVALS FOR WHAT MAY BECOME AN EXTREMELY LUCRATIVE BUSINESS TELULAR HAS LANDED GIANT DISTRIBUTORS INCLUDING MOST OF THE REGIONAL BELL TELEPHONE COMPANIES AND NUMEROUS CELLULAR CARRIERS SUCH AS MCCAW CELLULAR COMMUNICATIONS CO DISTRIBUTE TELULAR GEAR FOR USE AS EMERGENCY BACKUP SYSTEMS IN PLACES SUCH AS OFFICES AND HOSPITALS TELULAR SOLD SOME OF THE RIGHTS TO ITS PATENTS TO ANOTHER WIRELESS UPANDCOMER SPECTRUM INFORMATION TECHNOLOGIES INC WHICH RECENTLY HIRED ITS OWN HIGHPROFILE COMPUTER VETERAN FORMER APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY 9311190019 931119 INTERNATIONAL BRIEF STOREHOUSE PLC PRETAX PROFIT OF 172 MILLION IS POSTED FOR FISCAL FIRST HALF STOREHOUSE PLC SAID IT RETURNED TO PROFITABILITY IN ITS FISCAL FIRST HALF BOOSTED BY THE DECISION TO SELL ITS UNPROFITABLE HABITAT GROUP AND RICHARD OPERATIONS THE BRITISH RETAILING CONCERN REPORTED PRETAX PROFIT FOR THE PERIOD ENDED OCT 9 OF 116 MILLION 172 MILLION UP FROM A YEAREARLIER LOSS OF 273 MILLION SALES FELL 21 TO 4849 MILLION FROM 6174 MILLION EXCLUDING ONETIME ITEMS PRETAX PROFIT WAS 18 MILLION FOR THE HALF UP FROM A YEAREARLIER 31 MILLION THE COMPANY MAINTAINED ITS DIVIDEND OF 25 PENCE 37 CENTS A SHARE STOREHOUSE SAID COMPETITIVE MARKET CONDITIONS HAVE BECOME EVEN MORE SEVERE IN RECENT WEEKS AND ADDED THAT IT IS PARTICULARLY CONCERNED AT THE POSSIBLE EXTENSION OF THE VALUEADDED TAX TO CHILDREN'S CLOTHING WHICH ACCOUNTS FOR A QUARTER OF GROUP SALES 9311190018 931119 FOREIGN EXCHANGE NAFTA APPROVAL JOBLESS CLAIMS REPORT LIFT DOLLAR AGAINST BOTH MARK AND YEN BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK HOUSE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT AND A POSITIVE US ECONOMIC REPORT COMBINED TO LIFT THE DOLLAR AGAINST THE MARK AND THE YEN THURSDAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17128 MARKS UP FROM 17030 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10729 YEN UP FROM 10685 YEN STERLING WAS TRADING AT 14760 DOWN FROM 14795 AT MIDDAY FRIDAY IN TOKYO DOLLAR WAS TRADING AT 10765 YEN AND AT 17140 MARKS INITIALLY DEALERS NOTED NARROW APPROVAL FOR THE NAFTA TREATY SPARKED A ROUND OF DOLLAR SALES IN ASIAN DEALINGS AS PLAYERS SENSED AN OPPORTUNITY TO CASH IN ON THE US CURRENCY'S RECENT RUNUP IN ADVANCE OF THE VOTE BUT WHEN US INVESTMENT FUNDS SENSED A BUYING OPPORTUNITY AND STEPPED IN TO BUY THE DOLLAR AS IT FELL TO 17020 MARKS THE TIDE QUICKLY TURNED AND THE DOLLAR SNAPPED BACK TO 17100 MARKS IN JUST A FEW MINUTES THAT LEFT THE DOLLAR SLIGHTLY HIGHER AS IT DRIFTED THROUGH THE REST OF ASIAN AND EARLY EUROPEAN TRADING UNTIL IT RECEIVED ANOTHER BOOST FROM A REPORT SHOWING A DECLINE IN US JOBLESS CLAIMS NEW CLAIMS FOR US STATE UNEMPLOYMENT INSURANCE FELL BY 20000 IN THE WEEK ENDED NOV 13 A MUCH BIGGER DROP THAN ECONOMISTS HAD EXPECTED THE REPORT HELPED PROPEL THE DOLLAR UP TO 17150 MARKS A TOUGH RESISTANCE LEVEL THAT HAS HELD IT IN CHECK FOR THE LAST FEW DAYS BEFORE RUNNING INTO PROFITTAKING THE JOBLESS CLAIMS WERE PRETTY POSITIVE SAID TOM HOGE A CORPORATE FOREIGN EXCHANGE DEALER AT CREDIT SUISSE IN NEW YORK A 20000 IMPROVEMENT IS SOMETHING YOU CAN SINK YOUR TEETH INTO TRADERS SAID THE DOLLAR WAS ALSO HELPED BY AN UNCONFIRMED WIRE SERVICE REPORT THAT AN UNNAMED CLINTON ADMINISTRATION OFFICIAL HAD PREDICTED THAT THE DOLLAR WOULD RISE AGAINST EUROPEAN CURRENCIES AFTER NAFTA WAS APPROVED BUT THEY SAID THE MARKET QUICKLY DISMISSED THE REPORT AS UNRELIABLE ESPECIALLY AFTER US TREASURY SECRETARY LLOYD BENTSEN REFUSED TO COMMENT ON THE IMPACT NAFTA MIGHT HAVE ON THE DOLLAR ANOTHER FACTOR HELPING TO BUOY THE DOLLAR TRADERS SAID WAS A SLIGHT EASING IN A KEY GERMAN MONEYMARKET INTEREST RATE ANNOUNCED AFTER THE BIWEEKLY MEETING OF THE DEUTSCHE BUNDESBANK THURSDAY ALTHOUGH THE GERMAN CENTRAL BANK KEPT ITS KEY DISCOUNT AND LOMBARD RATES STEADY AT 5 3/4 AND 6 3/4 RESPECTIVELY IT DID LOWER ITS SECURITIES REPURCHASE OR REPO RATE TO A FIXED RATE OF 6 1/4 FOR NEXT WEEK 004 PERCENTAGE POINT BELOW THIS WEEK'S RATE TRADERS WERE DISAPPOINTED THAT THE POSITIVE FACTORS FOR THE DOLLAR WEREN'T ABLE TO POP THE CURRENCY THROUGH SELLING INTEREST AT 17150 MARKS A LEVEL THEY SAID MIGHT PUT A LID ON THE DOLLAR'S GAINS UNTIL SOME NEW IMPETUS EMERGES WE CAN'T SEEM TO BREAK INTO NEW GROUND CREDIT SUISSE'S MR HOGE SAID ALL THE PIECES ARE FALLING INTO PLACE FOR A HIGHER DOLLAR IT'S JUST THAT A NUMBER OF PEOPLE ALREADY HAVE THAT POSITION HE SAID MAKING NEW BUYERS HARD TO FIND ALSO HOLDING BACK THE DOLLAR SOMEWHAT TRADERS NOTED WAS THE BUNDESBANK'S DECISION TO USE A FIXED RATE FOR NEXT WEEK'S OPERATION RATHER A VARIABLE RATE AS IT HAD THIS WEEK A SWITCH THAT TOOK SOME OF THE GLOSS OFF THE EASING THAT IMPLIES A VERY CAUTIOUS STANCE TOWARD EASING RATES NOTED RICH SHIMOKAWA VICE PRESIDENT AND FOREIGN EXCHANGE MANAGER AT SUMITOMO BANK LTD IN NEW YORK THEY WILL REDUCE THEIR INTEREST RATES BUT ONLY GRADUALLY HE SAID MR SHIMOKAWA EXPLAINED THAT THE MOVE TO A FIXED RATE ALLOWS THE BUNDESBANK TO EASE PRESSURE TO LOWER RATES BY PREVENTING BANKS FROM OFFERING BIDS THAT ARE TOO LOW FOR THE BUNDESBANK'S LIKING THE REPO RATE IS THE GERMAN CENTRAL BANK'S MOST EFFECTIVE TOOL FOR INFLUENCING DOMESTIC MONEY MARKET RATES ROUGHLY 70 OF THE BUNDESBANK'S REFINANCING FUNDS TO GERMAN BANKS ARE ALLOCATED THROUGH THE WEEKLY OPERATIONS 9311190017 931119 PRUDENTIAL EXECUTIVE SAYS HE WAS DEMOTED FOR WHISTLEBLOWING NEWARK NJ AN EXECUTIVE AT PRUDENTIAL INSURANCE CO OF AMERICA SAID IN A LAWSUIT THAT HE WAS DEMOTED FOR BLOWING THE WHISTLE ON A SCHEME TO DEFRAUD INSTITUTIONAL INVESTORS MARK JORGENSEN FORMERLY MANAGER FOR THREE OF PRUDENTIAL'S REAL ESTATE FUNDS CHARGED IN THE SUIT THAT PRUDENTIAL INFLATED RETURNS AND INCREASED THE FEES ON ONE OF ITS INVESTMENT FUNDS THE PRUDENTIAL PROPERTY INVESTMENT SEPARATE ACCOUNT KNOWN AS PRISA THE SUIT FILED IN SUPERIOR COURT HERE IS UNRELATED TO THE PROBLEMS INVOLVING PRUDENTIAL SECURITIES PRUDENTIAL'S BROKERAGE FIRM PRUDENTIAL SECURITIES IS UNDER ATTACK FOR THE SALE OF ENERGY AND REAL ESTATE LIMITED PARTNERSHIPS TO RETAIL INVESTORS PRISA A FUND MANAGED BY PRUDENTIAL INSURANCE MADE REAL ESTATE INVESTMENTS FOR PENSION FUNDS THE FILING OF THE SUIT WAS FIRST REPORTED BY THE NEW YORK TIMES PRUDENTIAL SAID THAT MR JORGENSEN'S CLAIMS ARE UNFOUNDED AND THAT THEY RELATE TO HIS UNHAPPINESS ABOUT BEING DEMOTED IN AUGUST AFTER A REORGANIZATION MR JORGENSEN WHO STILL WORKS AT PRUDENTIAL CONTENDS THAT HE WAS REASSIGNED BECAUSE HE CALLED ATTENTION TO THE ALLEGED FRAUD PRUDENTIAL SAID IT AND AN OUTSIDE LAW FIRM HIRED BY THE COMPANY HAVE INVESTIGATED THE CHARGES AND FOUND NO EVIDENCE TO SUPPORT THE CLAIMS PRUDENTIAL SAID PROPERTY VALUATIONS ARE DETERMINED BY OUTSIDE APPRAISERS WE CATEGORICALLY DENY EVERY ASSERTION THAT HAS BEEN MADE HERE SAID CHARLES LIGHTNER CHIEF EXECUTIVE OFFICER FOR PRUDENTIAL REAL ESTATE INVESTORS A REAL ESTATE INVESTMENT UNIT OF PRUDENTIAL PRISA IS PRUDENTIAL'S LARGEST REAL ESTATE FUND WITH NET ASSETS OF 23 BILLION OVER THE LAST THREE YEARS THE FUND'S VALUE HAS FALLEN BY 40 BECAUSE OF THE SOFT MARKET FOR REAL ESTATE 9311190016 931119 BUSINESS BRIEF VAALCO ENERGY INC BETTER 4THPERIOD RESULTS EXPECTED BY HOUSTON FIRM VAALCO ENERGY INC EXPECTS TO REPORT FOURTHQUARTER RESULTS IN THE BLACK DESPITE RECENTLY REDUCED OIL PRODUCTION FROM ITS MAJOR FIELD OFFSHORE THE PHILIPPINES SAID KAREN MERRYMAN DIRECTOR OF FINANCIAL REPORTING FOR THE YEAREARLIER FOURTH QUARTER THE HOUSTON COMPANY HAD A NET LOSS OF 215000 OR THREE CENTS A SHARE ON REVENUE OF 85 MILLION THIS YEAR'S PROFIT RESULTS ARE LIKELY TO IMPROVE PARTLY BECAUSE THE COMPANY HAS REPLACED 63 MILLION IN HIGHINTEREST DEBT WITH LOWER INTEREST LINES MS MERRYMAN SAID VAALCO'S RESTRUCTURED DEBT AS OF SEPT 30 TOTALED 62 MILLION ALTHOUGH MS MERRYMAN SAID SHE CAN'T BE SPECIFIC IN ESTIMATING 1994'S FOURTHQUARTER RESULTS REVENUE WOULD LIKELY BE COMPARABLE WITH THE YEARAGO PERIOD 9311190015 931119 NAFTA THE ROAD AHEAD HOW A SENSE OF CLINTON'S COMMITMENT AND A SERIES OF DEALS CLINCHED THE VOTE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THROUGH THE LONG UPHILL BATTLE FOR HOUSE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT REP ROBERT MATSUI AN ADMINISTRATION POINT MAN WAS SUSTAINED BY THE SIMPLE MAXIM OF TWO DEMOCRATIC POOHBAHS AND FORMER PRESIDENTIAL AIDES JACK VALENTI AND ROBERT STRAUSS IF YOU'RE 20 OR 30 VOTES SHORT THE CALIFORNIA DEMOCRAT SAID YOU CAN ALWAYS WIN IF YOU'VE GOT A PRESIDENT WITH THE WILL TO WIN BILL CLINTON CAME FROM FURTHER BACK THAN EVEN 30 VOTES TO ACHIEVE WEDNESDAY NIGHT'S 234200 TRIUMPH IN THE HOUSE BUT HE SURGED AHEAD ONLY IN THE FINAL DAYS WHEN LAWMAKERS BECAME CONVINCED HE HAD THAT WILL AND WHEN HE FOLLOWED UP WITH DEALS AND CONCESSIONS FOR MANY OF THEM IN RETURN THE QUESTION IS WHETHER IN HIS ZEAL TO GET THE TRADE ACCORD PASSED HE GAVE AWAY TOO MUCH THE ADMINISTRATION BARTERED FOR VOTES ON A LARGE SCALE REFLECTING JUST HOW FAR FROM BEHIND IT HAD TO COME TO WIN IN THE HOUSE ESPECIALLY AMONG MEMBERS OF MR CLINTON'S OWN PARTY THE PAYOFF WAS SUPPORT IN A MIX OF STATE DELEGATIONS FROM VOTERICH FLORIDA TO CALIFORNIA BUT THE COST ASIDE FROM ANY FEDERAL DOLLARS WHICH ARE RELATIVELY FEW IS OUTRAGE BOTH WITHIN THE CAPITOL AND WITHOUT AND THAT IS LIKELY TO FEED THE PUBLIC'S DISDAIN FOR WASHINGTON WHEELING AND DEALING AND FEED LAWMAKERS' PERCEPTION THAT WITH THIS PRESIDENT A VOTE SHOULDN'T BE GIVEN FOR FREE THEY HAVE PRACTICALLY GIVEN AWAY THE FAMILY SILVER SNAPPED ANTINAFTA REP OLYMPIA SNOWE R MAINE IN A CHARGE THAT ECHOED THROUGHOUT THE HOUSE DEBATE ALREADY CONSUMER ACTIVIST RALPH NADER HAS DISPATCHED A NAFTA PORK PATROL TO CALCULATE THE COST OF THE DEALS TO US TAXPAYERS WHILE THE SENATE IS EXPECTED TO APPROVE NAFTA BY THIS WEEKEND ADMINISTRATION OFFICIALS ARE SCRAMBLING TO COUNTER THE DEALS STORY THEY ARGUE THAT IN MOST CASES THEY SIMPLY SOUGHT TO ENSURE THAT CERTAIN US INDUSTRIES AND THEIR WORKERS DON'T GET HURT BY THE TRADE PACT TREASURY SECRETARY LLOYD BENTSEN WAS CAREFUL TO STRESS THIS WEEK THAT MANY OF THE CONCESSIONS REPRESENTED A STRENGTHENING OF NAFTA THERE IS NO NET COST TO THE TREASURY HE INSISTED THE WHITE HOUSE WENT SO FAR AS TO GIVE REP EDDIE BERNICE JOHNSON D TEXAS A LETTER TO DEBUNK PUBLISHED REPORTS THAT HER NAFTA VOTE WAS LINKED TO ADMINISTRATION SUPPORT FOR ADDITIONAL C17 AIRCRAFT WHICH ARE BUILT PARTLY IN HER DISTRICT AND HOUSE SPEAKER THOMAS FOLEY OF WASHINGTON THE ONLY ONE OF THE TOP THREE DEMOCRATIC LEADERS TO SUPPORT NAFTA YESTERDAY DECRIED THE CRITICS' NONSENSE ABOUT DEALMAKING BUT SUSPICIONS WERE STOKED FURTHER ONCE THE VOTES WERE IN AMONG THE BACKERS OF NAFTA WERE TWO NORTH CAROLINA DEMOCRATS WHO HAD LINKED THEIR VOTES FOR THE TRADE ACCORD TO A REDUCTION OF THE 75CENTSAPACK TOBACCOTAX INCREASE IN THE CLINTON HEALTHCARE PLAN ADMINISTRATION OFFICIALS DENIED THERE WERE ANY TOBACCO DEALS FOR THE SUPPORT OF REPS CHARLES ROSE WHO HAD PREVIOUSLY SAID HE WAS A NO VOTE AND STEVE NEAL WHO HAD BEEN LEANING AGAINST THE TRADE ACCORD HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI LOBBYING FOR NAFTA VOTES MET MORE THAN ONCE IN RECENT WEEKS WITH TOBACCOSTATE LAWMAKERS AND WAS CREDITED WITH REP ROSE'S LASTMINUTE CONVERSION HE SIDESTEPPED QUESTIONS LATE WEDNESDAY ABOUT WHETHER HE'D OFFERED ANY ASSURANCES TO THEM THAT HIS COMMITTEE WOULD TRY TO CUT THE PROPOSED TAX INCREASE WHEN THE PANEL DRAFTS A HEALTH BILL NEXT YEAR BUT HE OBJECTED THAT THE PROPOSED TAX INCREASE ON SMOKELESS TOBACCO FOR EXAMPLE COULD THROW PEOPLE OUT OF WORK AND HE ADDED I DON'T KNOW WHETHER I CAN GET ENOUGH VOTES FOR 75 CENTS ANYWAY BUT THAT'S WHEN THE PRESIDENT WILL SAY WELL YOU FIND THE MONEY FOR THE HEALTH PLAN' AND THAT'S WHERE I'M STUCK AN AIDE TO REP NEAL SAID THE LAWMAKER'S NAFTA VOTE HAD NOTHING TO DO WITH THE TOBACCO TAX IN THE END WHILE REP ROSE WAS DELIBERATELY VAGUE MR CLINTON HIMSELF DIDN'T PROMISE ME ANYTHING ABOUT THE TAX MR ROSE SAID BUT HE WOULDN'T SAY IF ANYONE ELSE HAD I FEEL I SHOULD NOT COMMENT FURTHER HE SAID IN ANY CASE THE UNEXPECTEDLY COMFORTABLE MARGIN BY WHICH THE HOUSE APPROVED NAFTA ITSELF SEEMS EVIDENCE THAT SOMETHING MORE THAN DEALS WAS AT WORK IN THE 11THHOUR SHIFT OF SUPPORT AMONG LAWMAKERS OF BOTH PARTIES DEALS WOULDN'T HAVE MATTERED WITHOUT THEIR SENSE THAT MR CLINTON WAS COMMITTED TO WINNING AND PERSONALLY COMMITTED TO CONVINCING A PUBLIC WORRIED ABOUT JOB LOSSES THEIR CONSTITUENTS THAT NAFTA IS CRITICAL TO THE NATION'S ECONOMIC FUTURE AND GLOBAL STATURE HOUSE REPUBLICAN LEADER ROBERT MICHEL WHO WAS CRUCIAL TO HELPING DELIVER THREE OUT OF FOUR REPUBLICANS' VOTES TO THE PRESIDENT'S CAUSE SAID YESTERDAY BY THE PRESIDENT IMMERSING HIMSELF TO THE EXTENT HE DID TOTALLY WE COULD FEEL COMFORTABLE SUPPORTING HIM THE 34VOTE MARGIN OF VICTORY EVEN SUGGESTS THAT THE ADMINISTRATION CUT MORE DEALS THAN IT HAD TO MR MICHEL SAYS SOME REPUBLICANS PRIVATELY TOLD HIM I'M GOING TO DO WHAT I CAN TO GET WHAT I CAN FROM THE ADMINISTRATION BUT I'LL BE WITH YOU IN THE END THE ILLINOISAN A 37YEAR VETERAN OF THE HOUSE SAYS THAT THE CLINTON ADMINISTRATION GENERALLY HAS BARGAINED MORE FOR VOTES THAN THE PREVIOUS BUSH AND REAGAN ADMINISTRATIONS DID BUT AT THE SAME TIME MR MICHEL SAYS THE COMPLAINTS OF NAFTA FOES ARE OVERBLOWN AND BEYOND THAT HE DISTINGUISHES BETWEEN REAL LEGIT DEALS THAT WERE VIRTUALLY AMENDMENTS TO NAFTA AND THE MORE TRADITIONAL EXAMPLES OF LOGROLLING IN ANY CASE THE DEALS WERE HARDLY OF THE LINEYOURPOCKET SORT THAT MR NADER AND BILLIONAIRE POPULIST ROSS PEROT HAVE VAGUELY ALLEGED THE MOST CRUCIAL DEALS FOR SECURING VOTES ESPECIALLY IN FLORIDA AND LOUISIANA PROVIDED PROTECTIONS FOR PRODUCERS OF SUGAR CITRUS TOMATOES ASPARAGUS AND SWEET PEPPERS AS TARIFFS WITH MEXICO ARE PHASED OUT THE ADMINISTRATION NEGOTIATED CONCESSIONS INVOLVING FLATGLASS DURUM WHEAT HOME APPLIANCES WINE AND PEANUTS THAT MOLLIFIED MEMBERS OF BOTH PARTIES IN A VARIETY OF STATES SEPARATELY THE ADMINISTRATION PROMISED TEXTILESTATE LAWMAKERS TO SEEK A PROLONGED PHASEOUT OF EXISTING QUOTAS ON TEXTILE AND APPAREL IMPORTS IN THE CONTINUING WORLD TRADE TALKS IN GENEVA MANY OF THOSE DEALS WERE AIMED AT SECURING SUPPORT IN THE SENATE AS WELL THOUGH NAFTA HAS HAD MAJORITY BACKING IN THAT CHAMBER ALL ALONG EVEN SEN MAX BAUCUS OF MONTANA THE TRADE SUBCOMMITTEE CHAIRMAN AND A VIGOROUS NAFTA BACKER INSISTED ON THE PLEDGE FOR ACTION AIMED AT REDUCING CANADA'S SUBSIDIES FOR ITS DURUM WHEAT FARMERS THE ADMINISTRATION'S ENVIRONMENTAL SIDE AGREEMENT WITH MEXICO CALLED FOR THE ESTABLISHMENT OF A DEVELOPMENT BANK TO FUND BORDER CLEANUPS BUT THE MECHANISM CHOSEN WAS REP ESTEBAN TORRES'S PROPOSAL FOR A NORTH AMERICAN DEVELOPMENT BANK THAT WOULD ALSO FUND ECONOMIC PROJECTS AND JOBTRAINING PROGRAMS IN COMMUNITIES AWAY FROM THE BORDER THAT CONVERTED THE CALIFORNIA DEMOCRAT A FORMER LABOR OFFICIAL TO NAFTA BUT NO ONE ELSE SEEMED TO BE SWAYED ONE BANK ONE VOTE BECAME THE SHORTHAND RIDICULE OF THE COSTLY LOBBYING ULTIMATELY AT LEAST FOUR OTHER LAWMAKERS CITED THE BANK AS A REASON FOR THEIR VOTES FOR NAFTA REP JAKE PICKLE WON A PROVISION FOR A 10 MILLION TRADE RESEARCH CENTER AT A TEXAS UNIVERSITY ALTHOUGH THE DEMOCRAT'S SUPPORT WAS NEVER IN DOUBT FLORIDA GOT A COMMITMENT FOR 33 MILLION FOR A US HORTICULTURAL RESEARCH STATION IN ADDITION TO THE COMMODITIES CONCESSIONS IN THE END JUST OVER HALF THE FLORIDA LAWMAKERS 13 OF 23 SUPPORTED NAFTA BUT IT WAS SOMETHING MORE THAT FINALLY LOCKED UP REP CLAY SHAW'S VOTE THE FLORIDA REPUBLICAN HAD INSISTED THAT MEXICO SEEK TO ARREST AND EXTRADITE A MEXICAN ACCUSED OF SEXUALLY ABUSING THE YOUNG NIECE OF REP SHAW'S SECRETARY FINALLY THE MEXICAN ATTORNEY GENERAL PROMISED TO ACT THEN AUTO EXECUTIVE LEE IACOCCA LOBBYING IN REP CLAY SHAW'S OFFICE ON THE DAY OF THE HOUSE VOTE TALKED TO MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI BY PHONE AND WON HIS ASSURANCES OF ACTION REP SHAW VOTED FOR NAFTA HE CHUCKLED AT THE CONTRAST WITH OTHER LAWMAKERS TAKING THEIR PLEADINGS TO THE WHITE HOUSE MY NEGOTIATIONS HE SAID WERE WITH THE MEXICANS ASRA Q NOMANI CONTRIBUTED TO THIS ARTICLE 9311190014 931119 REPUBLIC NEW YORK BATTLES REGULATORS OVER GREEN POINT BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REPUBLIC NEW YORK CORP IS BATTLING WITH STATE REGULATORS OVER ITS 250 MILLION OFFER FOR GREEN POINT SAVINGS BANK OF QUEENS WHICH IS TRYING TO CONVERT TO A PUBLICLY OWNED COMPANY WEDNESDAY REPUBLIC SWEETENED ITS OFFER TO DEPOSITORS TO 250 MILLION FROM 100 MILLION IN A NOVEL ATTEMPT TO THWART THE CONVERSION FROM BEING DEPOSITOROWNED TO STOCKHOLDEROWNED THIS IS THE FIRST TIME A BANK HAS MADE AN UNSOLICITED OFFER FOR A MUTUALLY OWNED SAVINGS BANK BEFORE IT CONVERTS MANY MUTUAL SAVINGS BANKS HAVE BEEN CONVERTING RECENTLY TO PUBLIC COMPANIES AND HAVE SEEN THEIR SHARES SOAR GREEN POINT A 64 BILLIONASSET SAVINGS BANK THAT CATERS TO NEW YORK'S WORKING CLASS REJECTED REPUBLIC'S SWEETENED OFFER AND ASKED REGULATORS TO LOOK INTO THE MATTER THE NEW YORK STATE BANKING DEPARTMENT SAID LATE WEDNESDAY 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 ANY NEWS RELEASE DETAILING ITS OFFER REGULATORS DEMANDED AN IMMEDIATE WITHDRAWAL OF THE OFFER WHICH REPUBLIC HAS SO FAR REFUSED TO DO A SPOKESWOMAN FOR THE STATE REGULATORS SAID THAT IF REPUBLIC DOESN'T WITHDRAW ITS OFFER IT COULD BE SUBJECT TO AN INJUNCTION OR FINES A CEASE AND DESIST ORDER OR OTHER MEASURES REPUBLIC SAID IT HAD BEEN ADVISED BY BOTH SULLIVAN & CROMWELL AND SHEARMAN & STERLING TWO OF THE MOST PROMINENT BANKING LAW FIRMS ON THE LEGALITY OF THE MOVE WE IN NO WAY INTEND TO TAKE ANY ACTION WITH RESPECT TO OUR MERGER CONVERSION PROPOSAL FOR GREEN POINT THAT IS NOT CONSISTENT WITH LAW AND APPROPRIATE PROCEDURES THE COMPANY SAID THE BANKING DEPARTMENT SAID IT IS CRAFTING NEW POLICIES ON CONVERSIONS THAT ARE AIMED PARTLY AT PREVENTING PRESSURE OR COERCION ON TRUSTEES OF MUTUAL SAVINGS BANKS THE DEPARTMENT SAID TRUSTEES OF SAVINGS BANKS NEED NOT CONSIDER ANY UNSOLICITED OFFER AFTER THE BANK'S PLAN OF CONVERSION HAS BEEN APPROVED BY REGULATORS GREEN POINT'S INITIAL PUBLIC OFFERING WHICH WILL BE AROUND 700 MILLION IS GOING TO BE THE GRANDDADDY OF THEM ALL SAID JAMES MARX AN ANALYST AT SUTRO & CO MR MARX SAID HE WAS CONFUSED BY THE REGULATOR'S POSITION BECAUSE HE COMPARED THE SPECIAL INTEREST PAYMENT TO SPECIAL DIVIDEND PAYMENTS SHAREHOLDERS CAN RECEIVE AS PART OF ACQUISITIONS OF STOCKHOLDEROWNED COMPANIES THE RATIONALE WAS EXTREMELY ODD SAID MR MARX ACQUIRERS OFTEN PAY SPECIAL DIVIDENDS TO SHAREHOLDERS WHY NOT A DEPOSITOR WHO OCCUPIES THE SAME LEGAL POSITION AS A SHAREHOLDER 9311190013 931119 GERMAN REVENUES RISE BONN GERMAN FEDERAL AND STATE GOVERNMENTS TOOK IN A TOTAL OF 17124 BILLION MARKS 10067 BILLION IN THE THIRD QUARTER A RISE OF 324 BILLION MARKS OR 2 FROM A YEAR EARLIER ACCORDING TO THE FINANCE MINISTRY SAID WESTERN GERMAN INCOME TAXES FELL BY 21 IN THE QUARTER TO 5786 BILLION MARKS IN EASTERN GERMANY INCOME TAXES ROSE 124 TO 536 BILLION MARKS 9311190012 931119 ALLEGED STEEL DUMPING BY US OTHER MAKERS IS PROBED BY CANADA OTTAWA THE CANADIAN GOVERNMENT LAUNCHED AN INVESTIGATION TO DETERMINE IF SHIPMENTS OF GALVANIZED STEEL FROM THE US AND 10 OTHER COUNTRIES ARE BEING DUMPED ON THE CANADIAN MARKET DUMPING OCCURS WHEN GOODS ARE SOLD ON FOREIGN MARKETS AT UNFAIRLY LOW PRICES THE INVESTIGATION WAS INITIATED AFTER COMPLAINTS BY STELCO INC AND DOFASCO INC TWO MAJOR CANADIAN STEEL PRODUCERS THE OTHER COUNTRIES INVOLVED IN THE PROBE ARE AUSTRALIA BRAZIL FRANCE GERMANY JAPAN SOUTH KOREA NEW ZEALAND SPAIN SWEDEN AND BRITAIN THE US IS CANADA'S LARGEST FOREIGN SUPPLIER OF GALVANIZED STEEL WHICH IS USED IN CONSTRUCTION AND AUTOMOTIVE MANUFACTURING US SHIPMENTS TO CANADA TOTALED 59118 METRIC TONS IN 1992 ACCOUNTING FOR ABOUT 43 OF CANADA'S IMPORTS A METRIC TON IS EQUAL TO ABOUT 22046 POUNDS THE INVESTIGATION IS THE LATEST STEP IN A PROTRACTED STEELTRADE DISPUTE BETWEEN THE US AND CANADA 9311190011 931119 WHO'S NEWS MICHIGAN NATIONAL CORP MICHIGAN NATIONAL CORP FARMINGTON HILLS MICH DOUGLAS E EBERT 48 YEARS OLD WAS ELECTED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS BANK HOLDING COMPANY MR EBERT WHOSE APPOINTMENT BECOMES EFFECTIVE DEC 13 ALSO WAS ELECTED TO SERVE ON THE CORPORATE AND BANK BOARDS OF THE COMPANY HE ASSUMES THE PRESIDENT'S TITLE FROM ROBERT J MYLOD MR MYLOD CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAD HELD THE PRESIDENT'S POST SINCE OCTOBER 1990 THE CHIEF OPERATING OFFICER'S POST WAS CREATED FOR MR EBERT MICHIGAN NATIONAL OPERATES 190 BRANCHES 9311190010 931119 FREQUENCY ELECTRONICS CHARGED WITH FRAUD STOCK PRICE PLUNGES MITCHEL FIELD NY FREQUENCY ELECTRONICS INC A HIGHTECHNOLOGY DEFENSE CONTRACTOR SAID A FEDERAL GRAND JURY INDICTED IT ON CHARGES OF CONTRACT FRAUD AND ITS SHARES FELL 32 THE COMPANY SAID AN 18COUNT INDICTMENT ACCUSED IT OF DEFRAUDING THE US GOVERNMENT IN CONNECTION WITH CLAIMS SUBMITTED ON SIX TERMINATED AND RESTRUCTURED DEFENSE DEPARTMENT CONTRACTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING THE STOCK FELL 250 A SHARE TO CLOSE AT 525 RELATED CHARGES WERE FILED AGAINST PRESIDENT MARTIN B BLOCH HARRY NEWMAN TREASURER MARVIN NORWORTH CONTRACTS MANAGER AND ABRAHAM LAZAR A BOARD MEMBER AND FORMER EXECUTIVE THE INDICTMENT WHICH CAPS AN INVESTIGATION BEGAN IN 1990 INVOLVES 26 MILLION IN TERMINATION CLAIMS AND 27 MILLION IN RESTRUCTURED TERMS ON SIX DEFENSE DEPARTMENT FIXEDPRICE SUBCONTRACTS THE GOVERNMENT HAS FILED A RELATED CIVIL ACTION IN UNIONDALE NY SEEKING DAMAGES THE COMPANY SAID IT AND THE INDIVIDUAL DEFENDANTS REGARD THE CHARGES TO BE WHOLLY UNJUSTIFIED AND THAT THEY INTEND TO VIGOROUSLY CONTEST ALL CHARGES FREQUENCY WHICH HAD SALES IN THE YEAR ENDED APRIL 30 OF 43 MILLION ADDED THAT IT CONSIDERS THE CHARGES TO BE EXTREMELY SERIOUS AND POSSIBLY TO HAVE A MATERIAL ADVERSE EFFECT ON ITS BUSINESS PROSPECTS AND FINANCIAL CONDITION BUT IT SAID THE INDICTMENT WON'T IMPAIR FREQUENCY'S PERFORMANCE ON EXISTING GOVERNMENT AND COMMERCIAL CONTRACTS IT SAID THE CHARGES COULD RESULT IN THE SUSPENSION OF AWARDS OF ANY NEW GOVERNMENTRELATED CONTRACTS OR SUBCONTRACTS TO FREQUENCY THE COMPANY IS IN TALKS WITH DEFENSE DEPARTMENT OFFICIALS TO AVERT SUCH A SUSPENSION 9311190009 931119 NAFTA THE ROAD AHEAD BUSINESS EXPECTS NAFTA WILL BRING HOST OF BENEFITS MANY FIRMS PROMISE JOBS WILL RESULT IN THE US UAW WILL KEEP TRACK A WALL STREET JOURNAL NEWS ROUNDUP BUSINESS ANTICIPATES BIG BENEFITS FROM NAFTA NOW THAT THE HOUSE HAS PASSED THE NORTH AMERICAN FREE TRADE AGREEMENT EXECUTIVES AT COMPANIES LARGE AND SMALL 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 ALL ATTRIBUTABLE TO NAFTA DIFFERENT INDUSTRIES AND COMPANIES WITHIN THOSE INDUSTRIES LOOK AT THE TRADE AGREEMENT THROUGH THEIR OWN PRISMS AND SEE A SPECTRUM OF SPECIALIZED ADVANTAGES COMPUTER COMPANIES FOR EXAMPLE ARE PARTICULARLY INTERESTED IN NAFTA'S ANTIPIRACY IMPLICATIONS WHILE BANKERS TALK EAGERLY OF LEAPING INTO HERETOFORE RESTRICTED MEXICAN CAPITAL MARKETS ABROAD BUSINESS REACTION TO NAFTA'S PASSAGE IS ALSO LARGELY ENTHUSIASTIC YUTAKA KUME CHAIRMAN OF THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAYS HE HOPES THE AGREEMENT WILL PLAY AN IMPORTANT ROLE IN FURTHERING THE GLOBAL FREE TRADE SYSTEM HE DOES HOWEVER EXPRESS THE FEAR THAT NAFTA MAY EXCLUDE NONMEMBERS FROM NORTH AMERICAN MARKETS EXECUTIVES OF EUROPEAN COMPANIES SAY NAFTA WILL NOT ONLY EXPAND OPPORTUNITIES LONGTERM BUT WILL SERVE AS A TONIC FOR US ECONOMIC RECOVERY IF THE DECISION HAD GONE THE OTHER WAY WE WOULD HAVE BEEN VERY NERVOUS SAYS IMPERIAL CHEMICAL INDUSTRIES PLC'S CHIEF EXECUTIVE RONNIE HAMPEL IN LONDON ECONOMIC GROWTH IS VERY PATCHY AND ANYTHING WHICH SMACKS OF PROTECTIONISM IS VERY DANGEROUS AMONG THE US'S INDUSTRIAL GIANTS LAUDING THE AGREEMENT IS GENERAL ELECTRIC CO NAFTA WILL HELP ACCELERATE OUR EXPORTS TO MEXICO SAYS A SPOKESWOMAN FOR GE WHICH IS BASED IN FAIRFIELD CONN BY LOWERING THE TARIFFS NAFTA IS GOING TO MAKE GE PRODUCTS SUCH AS POWERGENERATION EQUIPMENT MEDICAL SYSTEMS AND LOCOMOTIVE PRODUCTS MORE COMPETITIVE IN MEXICAN MARKETS SHE SAYS THE LEGISLATION ALSO WILL ALLOW FOR NEW OPPORTUNITIES FOR OUR FINANCIAL SERVICES SHE SAYS ADDING THAT THE COMPANY IS HOPING INCREASED EXPORTS WILL HELP TO SAVE JOBS IN THE US BECAUSE OF NAFTA US JOBS ARE EXPECTED TO INCREASE AT FRED'S INC A MEMPHIS TENN DISCOUNT RETAILER WITH 200 STORES PRIMARILY IN THE SOUTHWEST FRED'S IMPORTS A SMALL PERCENTAGE OF ITS GOODS POTTERY HARDWARE AND SOME CLOTHING FROM MEXICO AND EXPECTS THAT PERCENTAGE WILL INCREASE AS MEXICAN IMPORTS GROW CHEAPER NAFTA WILL HELP EXPAND THE NUMBER OF US WORKERS THAT WE HAVE SAYS MICHAEL HAYES CHIEF EXECUTIVE OFFICER OF FRED'S ANY TIME YOU SEE AN OPPORTUNITY FOR A REDUCTION IN THE OVERALL COSTS OF GOODS THERE'S AN EXPANSION IN THE COMPANY SO THAT WILL BE GOOD FOR OUR WORKERS US JOBS WILL ALSO INCREASE AT PROCTER & GAMBLE CO BECAUSE OF NAFTA THE CONSUMERPRODUCTS COMPANY SAYS ELIMINATION OF MEXICAN DUTIES WILL ALLOW IT TO SUPPLY MEXICO WITH A BROADER RANGE OF BRANDS THAN IS CURRENTLY FEASIBLE AS A RESULT THE NUMBER OF USBASED JOBS SUPPLYING P&G'S BUSINESS IN MEXICO WILL MORE THAN DOUBLE TO MORE THAN 3500 FROM ABOUT 1500 A SPOKESMAN FOR P&G WHICH IS BASED IN CINCINNATI SAYS THAT FOR EVERY TWO EMPLOYEES THE COMPANY HAS IN MEXICO THERE IS ONE JOB IN THE US KEEPING ITS MEXICAN BUSINESS SUPPLIED AND THESE JOBS ARE IN THE HIGHPAY HIGHSKILL SECTORS NAFTA WILL NOT PROMPT P&G TO TRANSFER PRODUCTION TO MEXICO BECAUSE THE RELATIVELY FEW PRODUCTS IT CURRENTLY IMPORTS FROM MEXICO PRODUCTS THAT ARE GEARED TOWARD HISPANICS IN THE US ARE ALREADY DUTYFREE AMID THE CHORUS OF PRAISE FOR NAFTA SOME DISSONANT VOICES CAN BE HEARD FOR EXAMPLE SHORTLY AFTER THE BILL'S PASSAGE IN THE HOUSE UNITED AUTO WORKERS PRESIDENT OWEN BIEBER ISSUED A STATEMENT IN WHICH HE SAID HIS ORGANIZATION WOULD BE DEVOTED TO MEASURING NAFTA'S IMPACT AGAINST ITS PROMISES CLEARLY WORKERS HAVE NO INTENTION OF SITTING BY ON THE SIDELINES WHILE THE WORLD ECONOMY IS RESTRUCTURED ALL AROUND THEM SAID MR BIEBER WE INTEND TO SUSTAIN AND BUILD UPON THE ENERGY THAT HAS BEEN MOBILIZED IN THIS STRUGGLE ON THE OTHER SIDE OF THAT STRUGGLE WAS ROBERT J EATON CHAIRMAN OF CHRYSLER CORP THE LARGEST US AUTO MAKER IN MEXICO AND MR EATON PROMISES THAT CHRYSLER WILL BEGIN INCREASING ITS SHIPMENTS OF CARS TO MEXICO WITHIN A FEW DAYS OF NAFTA'S RATIFICATION HE ALSO PROMISES TO HELP LET NAFTASUPPORTING CONGRESSMEN AND THEIR CONSTITUENTS KNOW ABOUT IT CHRYSLER AND ITS SUPPLIERS HAVE CREATED 5000 US JOBS SOLELY BECAUSE OF TRADE WITH MEXICO MR EATON ESTIMATES I'VE CONTINUED TO TALK WITH OUT LABOR UNIONS AND TELL THEM HEY THIS IS JOBS THIS IS JOBS IN THE UNITED STATES IT'S JOBS IN OUR PLANTS' HE SAYS ONE OF THE NATION'S LEADING MAKERS OF AUTOMOTIVE PARTS ROCKWELL INTERNATIONAL CORP EL SEGUNDO CALIF FORECASTS THAT ITS EXPORTS TO MEXICO WILL DOUBLE BY 1996 TO ABOUT 60 MILLION CREATING ABOUT 1000 JOBS AT MANY ROCKWELL LOCATIONS AROUND THE US PATRICK M HALL VICE PRESIDENT OF CORPORATE DEVELOPMENT FOR THE AMERICAS SAYS WITH THE PASSAGE OF NAFTA SUPPLIERS TO THE AUTO INDUSTRY LIKE ROCKWELL WILL NO LONGER BE DRIVEN TO PUT PLANTS IN MEXICO TO MEET A 36 LOCALCONTENT REQUIREMENT HOWEVER THE COMPANY IS PROCEEDING WITH PLANS FOR A NEW PLANT IN QUERETARO ABOUT 100 MILES NORTH OF MEXICO CITY TO BUILD POWER WINDOWS AND SUNROOFS THE MEXICAN PASSENGER CAR MARKET IS GROWING AT A RAPID CLIP OF BETWEEN 7 AND 8 HE SAYS IN THE COMPUTER INDUSTRY JIM P MANZI LOTUS DEVELOPMENT CORP'S CHIEF EXECUTIVE OFFICER CALLS THE PASSAGE OF NAFTA GOOD NEWS BECAUSE OF ITS POTENTIAL FOR TIGHTENING MEXICAN LAWS AGAINST SOFTWARE PIRACY THE BIG ISSUE IN OUR INDUSTRY IS PIRACY HE SAYS NAFTA LAYS THE FOUNDATION FOR PASSAGE OF ANTIPIRACY LAWS IN MEXICO HE ADDS AMONG COMPUTER COMPANIES BOTH LOTUS AND DIGITAL EQUIPMENT CORP SAY THAT ALTHOUGH NAFTA WILL HELP THEM INCREASE SALES IN MEXICO THAT COUNTRY WILL PROBABLY STILL REPRESENT A SMALL PORTION OF THEIR WORLDWIDE SALES IN THE NEAR FUTURE WE DON'T EXPECT ANY GIANT SUCKING SOUND OF PERSONAL COMPUTERS GOING INTO MEXICO AT ONCE SAYS LOTUS'S MR MANZI PIRACY IS ALSO A CONCERN OF THE ENTERTAINMENT INDUSTRY NAFTA WILL PUT IN PLACE THE KINDS OF PROTECTIONS INCLUDING THE RESPECT FOR INTELLECTUAL PROPERTY THAT WILL MAKE MEXICO A MORE VIABLE MARKET IN WHICH TO CONDUCT BUSINESS SAYS AL TELLER CHAIRMAN OF MCA INC'S MUSICENTERTAINMENT GROUP THE PASSAGE OF NAFTA WILL LIKELY ACCELERATE MCA'S PLANS TO SET UP RECORD OPERATIONS IN MEXICO STAFFED BY WORKERS THERE MR TELLER SAYS THE COMPANY A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO HOPES TO MAKE DEALS WITH MEXICAN RECORDING ARTISTS WE DON'T ANTICIPATE ANY LESSENING OF OUR WORK FORCE IN THE US AS A RESULT OF NAFTA HE SAYS US BANKS ARE EXPECTED TO BE AMONG THE BIGGEST BENEFICIARIES OF NAFTA CITICORP'S CITIBANK IS THE ONLY US BANK WITH A MEXICAN BANKING LICENSE OTHER US BANKS HAVE REPRESENTATIVE OFFICES IN WHICH SOME ADVISORY BUSINESS CAN BE CONDUCTED MOST BIG US BANKS SAY THEY WILL APPLY FOR EITHER A BANKING LICENSE OR A SECURITIES LICENSE IN MEXICO THE BIG US BANKS ARE RESTRICTED FROM ENTERING THE LOCAL CAPITAL MARKETS SUCH AS THE CETES MARKET THE MEXICAN TREASURY MARKET AND USE BROKERS INSTEAD UNDER NAFTA THOSE RESTRICTIONS WILL BE LIFTED NOW BIG US BANKS PLAN TO JUMP IN FEET FIRST ESPECIALLY IN THE CETES MARKET BANKERS TRUST NEW YORK CORP IS ONE MAJOR US BANK SAYING IT WILL APPLY TO BECOME A CETES DEALER WE ARE GOING TO LOOK AT ALL THE OPTIONS INCLUDING A SIGNIFICANT EXPANDED PRESENCE IN THE COUNTRY SAYS NEIL ALLEN MANAGING DIRECTOR AT BANKERS TRUST AND THE BANKS' INCREASED INTEREST IN MEXICO IS EXPECTED TO CREATE JOBS BOTH IN THAT COUNTRY AND IN NEW YORK THERE WILL BE MORE PEOPLE WORKING IN NEW YORK AS A RESULT OF INCREASED APPETITE FOR MEXICAN INVESTMENTS SAYS MR ALLEN JOHN B MCCOY CHAIRMAN OF BANC ONE CORP SAYS THAT PASSAGE OF NAFTA WILL STRENGTHEN HIS BANK'S YEAROLD CREDIT AND DEBITCARD PARTNERSHIP WITH BANAMEX MEXICO'S LARGEST BANK BANC ONE BASED IN COLUMBUS OHIO IS INSTALLING CREDIT AND DEBITCARD PROCESSING SOFTWARE AT BANAMEX MR MCCOY SAYS NAFTA FURTHER CEMENTS THIS RELATIONSHIP AS MEXICO'S MIDDLE CLASS INCREASES AND WAGES GO UP THERE ARE GOING TO BE MORE OPPORTUNITIES FOR BANAMEX AND MORE OPPORTUNITIES FOR US TO WORK WITH THAT BANK HE ADDS THAT NAFTA WILL STRENGTHEN THE ECONOMIES OF ARIZONA AND TEXAS WHERE BANC ONE HAS A SIGNIFICANT PRESENCE IN THOSE TRADING CENTERS NAFTA CAN BE VERY POSITIVE FOR US HE SAYS AMONG TEXAS COMPANIES THAT THE AGREEMENT WILL BENEFIT IS FROZEN FOOD EXPRESS INDUSTRIES INC OF DALLAS WHICH OPERATES A FLEET OF REFRIGERATED TRUCKS WITH TRADE BARRIERS DOWN PARTICULARLY FOR AGRICULTURAL GOODS WE THINK THERE WILL BE A LOT MORE BUSINESS FOR OUR COMPANY SAYS STONEY STUBBS CHIEF EXECUTIVE ADDING WE'LL NEED MORE DRIVERS INDEED AGRICULTURE IS ONE OF THE FIRST US INDUSTRIES THAT COULD QUICKLY SEE MORE BUSINESS BECAUSE OF NAFTA'S PASSAGE CORN EXPORTS TO MEXICO ARE FORECAST TO JUMP BECAUSE MEXICO WOULD ALLOW 25 MILLION METRIC TONS OF CORN TO ENTER DUTYFREE IN THE FIRST YEAR MOST OF THE NATION'S BIG GRAIN GIANTS HAVE OPENED OFFICES IN MEXICO CITY IN RECENT YEARS MINNEAPOLISBASED CARGILL INC THE NATION'S LARGEST GRAIN MERCHANDISER OPENED AN OFFICE IN MEXICO CITY ABOUT FOUR YEARS AGO IT HAS A HYBRID SEED CORN BUSINESS AND SMALL MEAT PLANT THERE BUT DECIDED TO PUT A NUMBER OF POSSIBLE ACQUISITIONS ON HOLD AS NAFTA GATHERED STEAM IN THE HOUSE THERE'S MUCH MORE ADVANTAGE FOR CARGILL TO EXPORT TO MEXICO SAYS WARREN STALEY PRESIDENT OF CARGILL'S NORTH AMERICAN SECTOR MR STALEY SAYS THAT CARGILL WILL EVENTUALLY HIRE MORE WORKERS IN THE US AS A RESULT OF NAFTA I'M ABSOLUTELY CONVINCED THAT THERE WILL BE A NET INCREASE FOR JOBS IN THE US HE SAYS AT ARCHERDANIELSMIDLAND CO THE DECATUR ILL GRAIN PROCESSOR AND EXPORTER DWAYNE O ANDREAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAYS HE EXPECTS INDUSTRYWIDE EXPORTS OF US WHEAT AND CORN PRODUCTS TO MEXICO TO TRIPLE OVER THE NEXT SEVERAL YEARS HE FIGURES THAT ANNUAL SPENDING IN MEXICO ON FOOD COULD DOUBLE TO 100 BILLION IF THE STANDARD OF LIVING THERE RISES TO THAT OF PUERTO RICO JAPAN IS CLOSED AND WILL STAY CLOSED MR ANDREAS SAYS EUROPE DOESN'T NEED US THE GENERAL AGREEMENT ON TARIFFS AND TRADE HAS ONLY A 50 CHANCE OF PASSING IN TIME MEXICO IS THE ONE PLACE LEFT IN THE WORLD FOR US ANOTHER ILLINOIS AGRICULTURAL CONCERN DEKALB GENETICS CORP SAYS NAFTA WILL CAUSE ITS SEEDCORN SALES TO GROW IN THE US BECAUSE FARMERS HERE WILL PLANT MORE ACREAGE TO SUPPLY MEXICO AT THE SAME TIME RISING PORK EXPORTS TO MEXICO SHOULD ALSO INCREASE DEMAND FOR THE LINES OF SWINE BRED BY THE COMPANY FOR HOG FARMERS SAYS RICHARD RYAN DEKALB GENETICS PRESIDENT WHO PHONED ILLINOIS'S CONGRESSIONAL DELEGATION IN SUPPORT OF NAFTA MAJOR US RAILROADS WHICH ALSO LOBBIED INTENSELY FOR NAFTA BELIEVE THE AGREEMENT WILL LEAD TO HIGHER RAIL FREIGHT TRAFFIC MORE RAIL JOBS AND INCREASED INVESTMENT AT RAIL BORDER CROSSINGS NAFTA MEANS ESPECIALLY GOOD NEWS FOR US RAILROADS AND THEIR EMPLOYEES SAYS EDWIN L HARPER CHAIRMAN AND CHIEF EXECUTIVE OF THE ASSOCIATION OF AMERICAN RAILROADS A TRADE GROUP IN WASHINGTON IT MEANS MORE JOBS AND A SIGNIFICANT INCREASE IN OUR GROSS REVENUE HE PROJECTS THAT NAFTA WILL CREATE UP TO 12000 ADDITIONAL RAIL JOBS BY THE YEAR 2000 AS TRADE WITH MEXICO GROWS TO 8 OF RAILROAD REVENUES FROM 2 NOW EUROPEAN AND ASIAN EXECUTIVES ARE ALMOST UNIFORMLY SUPPORTIVE OF NAFTA ALTHOUGH SOME PARTICULARLY IN JAPAN HAVE A FEW MORE RESERVATIONS ABOUT THE AGREEMENT THAN THEIR US COUNTERPARTS NISSAN MOTOR CO'S PRESIDENT YOSHIFUMI TSUJI SAYS HIS COMPANY HOPES NAFTA WILL NOT LEAD TO THE FUTURE FORMATION OF A REGIONAL ECONOMIC BLOCK WITH MARKETS THAT ARE CLOSED TO THE OUTSIDE WORLD BUT HE ADDS THAT HE EXPECTS THE BENEFITS OF NAFTA TO APPLY TO ALL BUSINESSES OPERATING IN THE REGION REGARDLESS OF THEIR NATIONAL ORIGIN CURRENTLY NISSAN IS THE ONLY JAPANESE AUTO MAKER MANUFACTURING IN MEXICO AMONG EUROPEANS ROGER LEVERTON GROUP CHIEF EXECUTIVE OF PILKINGTON PLC SAYS PASSAGE OF NAFTA WON'T EXPAND OPPORTUNITIES FOR PILKINGTON OVERNIGHT BUT WE CAN ONLY BELIEVE IT WILL EXPAND THE OPPORTUNITIES IN THE MEXICAN MARKET IN THE LONG TERM PILKINGTON IS A MAJOR SUPPLIER OF GLASS TO THE AUTOMOTIVE AND CONSTRUCTION INDUSTRIES AND HAS INVESTMENTS IN TWO PLANTS IN MEXICO IN THE US HENRY VOSS DIRECTOR OF CALIFORNIA'S DEPARTMENT OF FOOD AND AGRICULTURE SEES NAFTA AS A SORT OF CORNUCOPIA THE AGREEMENT HE SAYS PRESENTS CALIFORNIA FARMERS WITH HUGE POTENTIAL NEW MARKETS SPECIFICALLY HE SAYS WE EXPECT INCREASED EXPORT OPPORTUNITIES FOR APPLES PEARS PEACHES NECTARINES KIWI FRUIT RAISINS PRUNES CHERRIES COTTON GRAPES FRESH TOMATOES DRIED BEANS NUTS FRESH CITRUS RICE DAIRY PRODUCTS BEEF HAY WHEAT AND WINE 9311190008 931119 NAFTA THE ROAD AHEAD EASY PESOS ARE GONE IN MEXICAN STOCKS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE MEXICAN BOLSA ROSE A MUTED 082 ON THE FREETRADE TREATY'S APPROVAL BY THE US HOUSE OF REPRESENTATIVES IT LOOKS AS IF THE EASY MONEY IS GONE FROM NOW ON THE MEXICAN MARKET IS A STOCKPICKER'S GAME THAT'S THE VIEW FROM MEXICO IN THE WAKE OF THE HOUSE VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT NEVER MIND THAT IN THE US SOME ANALYSTS ARE RUSHING TO PREDICT A BIG DOUBLEDIGIT ANNUAL GAIN FOR MEXICO'S STOCK MARKET IN THE EYES OF LOCAL ANALYSTS MANY STOCKS HERE ESPECIALLY THE NAFTAPROOF RETAILERS AND BOTTLERS ALREADY TRADE AT LOFTY LEVELS THERE ISN'T VALUE EVERYWHERE ANY MORE SAYS ARTURO ACEVEDO ACEVES DIRECTOR OF RESEARCH AT VECTOR A MEXICAN BROKERAGE HOUSE NOW YOU REALLY HAVE TO LOOK FOR NEW IDEAS IN FACT SOME US PROS CURRENTLY RECOMMEND LOOKING FOR NAFTA PLAYS IN THE US STOCK MARKET RATHER THAN MEXICO FOR THE YEAR TO DATE THE BOLSA IS UP 231 IN LOCAL CURRENCY TERMS 233 IN DOLLAR TERMS THAT INCLUDES YESTERDAY'S SUBDUED GAIN THE BOLSA ROSE 1754 POINTS CLOSING AT A RECORD 216604 THE PESO STRENGTHENED AND MEXICAN INTEREST RATES EASED UNDER THE BOLSA'S SKYLIGHTS FLOOR TRADERS BARKED OUT BUY ORDERS AT THE OPENING BELL BUT SHORTLY AFTER THE OPENING FLURRY TRADING TURNED UNUSUALLY CAUTIOUS WITH FLOOR BROKERS STUDYING PRICE SCREENS AS THE IPC INDEX MOVED INTO UNCHARTED TERRITORY VOLUME WAS A MODERATE 131 MILLION SHARES THE VALUE OF ALL STOCKS ON THE MEXICAN MARKET IS AROUND 152 BILLION MAKING THE BOLSA THE LARGEST LATIN AMERICAN STOCK MARKET FOREIGN INVESTORS OWN MORE THAN 38 BILLION IN MEXICAN SHARES THE PESO ALSO STRENGTHENED TRADING AT 311 PER DOLLAR COMPARED WITH 312 PER DOLLAR WEDNESDAY INTEREST RATES FELL IN THE RESALE MARKET FOR MEXICAN TREASURY BILLS ONEYEAR MATURITIES WERE AT 1175 DOWN 04 PERCENTAGE POINT FROM TUESDAY'S AUCTION RATE TWENTYEIGHT DAY BILL YIELDS FELL 1/2 POINT TO 1345 LOWER INTEREST RATES AND FASTER GROWTH ARE THE TWO FORCES THAT SHOULD LIFT THE EARNINGS OF MANY MEXICAN COMPANIES NEXT YEAR THAT'S WHY BULLISH ANALYSTS SUCH AS ROBERT J PELOSKY VICE PRESIDENT AT MORGAN STANLEY & CO SAY THE MEXICAN BOLSA COULD RISE 40 TO 50 DURING THE NEXT 12 MONTHS BARING SECURITIES IS CALLING FOR A 61 GAIN IN 1994 AND JORGE MARISCAL GOLDMAN SACHS' HEAD OF LATIN AMERICAN STOCK RESEARCH THINKS THE MEXICAN MARKET IS ABOUT 30 BELOW FAIR VALUE CURRENTLY EVEN SO YOU HAVE TO BE SELECTIVE IN PICKING STOCKS IN MEXICO MR ACEVEDO OF VECTOR INSISTS A CARTOON IN YESTERDAY'S EDITIONS OF THE MEXICAN BUSINESS DAILY EL FINANCIERO SAYS IT ALL TWO CARICATURES OF THE US AND MEXICAN STOCK MARKETS ARE TOASTING EACH OTHER WITH BEER MUGS THE CAPTION READS AT LAST EQUALS AND INDEED WHEN IT COMES TO VALUATION THERE ARE SIMILARITIES BETWEEN SOME MEXICAN STOCKS AND THEIR PRICEY AMERICAN PEERS WHILE THE MEXICAN STOCK MARKET MAY LOOK CHEAP AT AROUND 12 TIMES EARNINGS MINUS BANK ISSUES AND TELEFONOS DE MEXICO WHOSE LOW PRICEEARNINGS RATIOS DISTORT THE OVERALL MARKET'S P/E VALUE MANY MEXICAN STOCKS ARE OVERPRICED MR ACEVEDO SAYS BUT HE ADDS THERE ARE SPECIFIC SECTORS THAT MIGHT STILL BE CHEAP GIVEN THEIR GROWTH POTENTIAL MR ACEVEDO ENVISIONS THREE FORCES PROPELLING THE MEXICAN ECONOMY NEXT YEAR HIGHER EXPORTS STRONGER GOVERNMENT SPENDING ON INFRASTRUCTURE AND PLANTANDEQUIPMENT INVESTMENT BY MEXICAN COMPANIES UPGRADING TO COMPETE IN THE LIBERALIZED ECONOMY HENCE HE IS BULLISH ON CONSTRUCTION AND BUILDING MATERIALS MR ACEVEDO LIKES CEMENT COMPANIES CEMEX APASCO AND TOLMEX A CEMEX SUBSIDIARY BASICALLY YOU HAVE A DUOPOLY AND STRUCTURAL BARRIERS SUCH AS THE HIGH COST OF TRANSPORTATION THAT KEEP COMPETITORS AWAY HE SAYS HE BELIEVES CEMEX IS ALSO DETERMINED TO REAP EFFICIENCIES OUT OF ITS PLANTS DROPPING THEIR AVERAGE COST OF 31 A TON CLOSER TO 22 A TON DEMAND FOR CEMENT WILL BE FUELED BY GOVERNMENT SPENDING ON SCHOOLS AND HOUSING HE SAYS CONTRACTORS EMPRESAS ICA TRIBASA AND BUFETE INDUSTRIAL SHOULD ALSO BENEFIT FROM GOVERNMENT SPENDING ON ROADS PORTS AIRPORTS AND WATER AND WASTETREATMENT FACILITIES BOTH ICA AND TRIBASA HAVE HAD THEIR TROUBLES WITH POORLY PERFORMING TOLL ROADS THEY OPERATE HOWEVER MR ACEVEDO SAYS HE THINKS BOTH COMPANIES WILL BE ABLE TO SECURITIZE SOME ROADS AND REPAIR THEIR BALANCE SHEETS TRIBASA RECENTLY DID THIS WITH TWO TOLL ROADS IN A 110 MILLION BOND ISSUE UNDERWRITTEN BY SALOMON BROTHERS FOR A US PLAY ON MEXICAN INFRASTRUCTURE SPENDING INVESTORS SHOULD TAKE A LOOK AT CATERPILLAR OF PEORIA ILL TARIFFS ON CATERPILLAR'S TRACTORS AND MACHINERY WILL FALL TO ZERO FROM 10 TO 20 CURRENTLY CATERPILLAR WHICH SOLD 200 MILLION IN PRODUCTS IN MEXICO LAST YEAR HAS FAR AND AWAY THE LARGEST PRESENCE AND EXPOSURE IN MEXICO OF US CAPITAL GOODS COMPANIES SAYS CHARLES HARRIS ANALYST AT OPPENHEIMER & CO THERE IS SUBSTANTIAL OPPORTUNITY IN MEXICO HE ADDS ROGER SIT WHO FOLLOWS CAPITAL GOODS COMPANIES FOR GOLDMAN SACHS SAYS DEERE WHICH OWNS 50 OF ITS MEXICAN SUBSIDIARY WITH THE SAME NAME AND MACHINETOOL COMPANY GIDDINGS & LEWIS COULD ALSO STEP UP EXPORTS TO MEXICO NAFTA WILL FORCE MEXICAN BANKS WHICH ENJOY SOME OF THE HIGHEST LENDING MARGINS IN THE WORLD TO BECOME MORE COMPETITIVE THE TREATY SAYS US AND CANADIAN BANKS CAN HAVE AS MUCH AS 8 OF MEXICO'S BANKING CAPITAL NEXT YEAR AND MARKETSHARE LIMITS DISAPPEAR BY 2000 MR ACEVEDO OF VECTOR SEES A TREMENDOUS BUYING OPPORTUNITY IN REGIONAL BANKER BANCRESER IT OPERATES IN MEXICO'S NORTHEASTERN STATES BUT RECENTLY EXPANDED WESTWARD WITH THE ACQUISITION OF BANORO VECTOR LIKES BANCRESER FOR ITS LOW LEVEL OF NONPERFORMING LOANS ONLY 29 OF TOTAL ASSETS THE STOCK TRADES AT ONLY 65 TIMES TRAILING EARNINGS COMPARED WITH AN AVERAGE MULTIPLE OF AROUND NINE FOR MEXICAN BANKS MR ACEVEDO ALSO LIKES GRUPO SIDEK WHICH HAS INTERESTS IN SPECIALTY STEEL AND TOURISM THROUGH ITS SITUR AND SIMEC UNITS THE STOCK TRADES AT 65 TIMES ESTIMATED 1993 EARNINGS THEY HAVE GOOD MANAGEMENT WHICH IS VERY AGGRESSIVE AND VERY EXPERIENCED HE SAYS EARLIER THIS YEAR THE SITUR UNIT BOUGHT THE RADISSON HOTEL CHAIN FROM A MEXICAN BANK THE COMPANY HAS A JOINT VENTURE WITH HOLIDAY INN TO ESTABLISH A CHAIN IN MEXICO FINALLY AMONG FRANCHISE COMPANIES MR ACEVEDO RECOMMENDS BOTTLER GRUPO CONTINENTAL KNOWN AS CONTAL THE COCACOLA FRANCHISER DELIVERED AN AMAZING THIRDQUARTER REPORT HE SAYS WITH EARNINGS RISING 50 EXCLUDING EXTRAORDINARY GAINS SALES IN REAL TERMS ARE GROWING AT A 15 ANNUALIZED RATE THE STOCK TRADES AT 275 TIMES ESTIMATED 1993 EARNINGS MR MARISCAL OF GOLDMAN SACHS SAYS A BROAD APPROACH TO THE MEXICAN MARKET IS PROBABLY A GOOD BET FOR 1994 INVESTORS CAN TAKE SUCH AN INVESTMENT VIEW THROUGH MUTUAL FUNDS THERE IS QUITE A BIT OF ROOM FOR MULTIPLE EXPANSION HE SAYS BUT AFTER THAT MEXICO IS GOING TO BECOME A MUCH MORE MATURE MARKET IN THE US STOCKS OF PUBLICLY TRADED INVESTMENT FUNDS THAT DO THEIR STOCKPICKING IN MEXICO RALLIED SO DID SOME SUCH CLOSED END FUNDS THAT INVEST MORE BROADLY IN LATIN AMERICA MEXICO FUND ROSE 1 TO 29 3/8 ON FIVETIMESNORMAL VOLUME OF 19 MILLION SHARES EMERGING MEXICO FUND ADDED 5/8 TO 22 1/8 AND MEXICO EQUITY & INCOME FUND ROSE 1 TO 20 7/8 9311190007 931119 EC MINISTERS FAIL TO REACH CONSENSUS ON STEEL INDUSTRY PLAN BRUSSELS CHAOS THREATENS THE EUROPEAN COMMUNITY'S AILING STEELMAKERS AS AN EC RESTRUCTURING PLAN STARTED UNRAVELING AMID POLITICAL BICKERING EC INDUSTRY MINISTERS FAILED TO REACH A COMPROMISE ON A PLAN FOR STATEOWNED STEELMAKERS IN ITALY GERMANY AND SPAIN THE PLANS INVOLVE CUTTING PRODUCTION CAPACITY AND ALLOWING A FINAL AMOUNT OF GOVERNMENT SUBSIDIES BEFORE PRIVATIZING THE COMPANIES BRITAIN FRANCE THE NETHERLANDS LUXEMBOURG AND DENMARK REJECTED OR CRITICIZED THE GERMAN AND SPANISH PROPOSALS AS TOO GENEROUS OFFICIALS SAID ALTHOUGH THESE PLANS HAD RECEIVED THE EC COMMISSION'S BLESSING ITALY'S PLAN FOR THE RESTRUCTURING OF STATEOWNED ILVA SPA WAS JUDGED UNACCEPTABLE BY ALL THE OTHER 11 MEMBER STATES AS WELL AS THE COMMISSION PARTICIPANTS SAID THAT WHAT HAD STARTED AS A RATHER POSITIVE MINISTERIAL SESSION ENDED IN DISARRAY IN THE END THE MINISTERS DECIDED TO CALL IT A DAY WITHOUT HAVING REACHED A COMPROMISE IT WAS A CLASH SAID MELCHIOR WATHELET THE BELGIAN INDUSTRY MINISTER WHO PRESIDED OVER THE MEETING THE COMMISSION HAS BEEN STRUGGLING FOR ALMOST A YEAR NOW TO BROKER A VAST INDUSTRYWIDE RESTRUCTURING PACKAGE UNDER WHICH STEEL PRODUCERS BOTH IN THE PRIVATE AND PUBLIC SECTORS WOULD AGREE TO SCRAP AS MUCH AS 30 MILLION TONS IN EXCESS CAPACITY IN RETURN FOR EC AND GOVERNMENT FINANCIAL HELP THE OVERCAPACITY PROBLEM COMPOUNDED BY RISING IMPORTS FROM EASTERN EUROPE AND THE RECESSION HAS LEFT MANY STEELMAKERS POSTING HEFTY LOSSES WITHOUT ORDERLY ECWIDE CAPACITY CUTS SEVERAL MAJOR STEELMAKERS WOULD HAVE NO OTHER CHOICE THAN CLOSING OR BANKRUPTCY INDUSTRY OFFICIALS SAY 9311190006 931119 THE BUSINESS OF LAW LEGAL BEAT RAIDERS' ENEMY IN '80S TAKES SURPRISING PATH BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL IN THE OLD DAYS WHEN WACHTELL LIPTON ROSEN & KATZ STOOD UP FOR A CLIENT IT ALSO STOOD UP FOR A CONSISTENT PRINCIPLE THAT HOSTILE TAKEOVERS WERE DESTROYING COMPANIES AND UNDERMINING THE ECONOMY BUT NO MORE THE NEW YORK LAW FIRM'S JUMP ACROSS THE GREAT DIVIDE FROM HELPING TARGETS AVOID RAIDS TO ADVISING ONE OF BIGGEST CURRENT HOSTILE BIDDERS OF THEM ALL QVC NETWORK INC REFLECTS THE CHANGING ECONOMICS OF LEGAL WORK IN TAKEOVER FIGHTS IT ALSO PUTS WACHTELL LIPTON IN THE AWKWARD POSITION OF ADVOCATING LEGAL POSITIONS IT ONCE ACTIVELY DERIDED IN THE NEWS MEDIA AS IT OPPOSED THEM IN COURT WHEN HERBERT WACHTELL STOOD BEFORE A DELAWARE JUDGE THIS WEEK TO CHAMPION QVC'S HOSTILE BID FOR PARAMOUNT COMMUNICATIONS INC HE EFFECTIVELY REVERSED YEARS OF ANTITAKEOVER RHETORIC BY HIS FIRM IN THE 1980S MR WACHTELL OR HIS MORE FAMOUS PARTNER MARTIN LIPTON MADE THEIR ANTITAKEOVER PITCHES WHEREVER THEY COULD AT SYMPOSIA IN INTERVIEWS IN CONGRESS AND IN NUMEROUS WIDELY CIRCULATED MEMOS TO CLIENTS THE FIRM ALSO IS CREDITED WITH INVENTING A VARIETY OF POPULAR TAKEOVER DEFENSES INCLUDING THE SOCALLED POISON PILL A VERSION OF WHICH IT IS NOW FIGHTING IN THE CASE AGAINST PARAMOUNT REPRESENTING ONE POINT OF VIEW AND THEN ITS POLAR OPPOSITE IS NOTHING NEW IN THE BAR OF COURSE BUT WACHTELL LIPTON MAY HAVE BEEN ALMOST UNIQUE AMONG LAW FIRMS IN THE CONSTANCY AND PUBLIC FERVENCY OF ITS STATED PHILOSOPHY WHAT WAS UNUSUAL WAS THAT FOR A LONG TIME THEY TOOK THE POSITION THAT THEY FOR SOMEWHAT MORALISTIC REASONS WOULD ONLY REPRESENT THE DEFENSE SAYS JOHN COFFEE A CORPORATELAW SPECIALIST AT COLUMBIA LAW SCHOOL THE TOP LAWYERS AT THE FIRM WON'T COMMENT NOW ON THE PERCEPTION THAT THEY HAVE HAD A CHANGE OF HEART BUT THEY HAVE TOLD OTHER LAWYERS THAT WHEN THEY REPRESENT AN ACQUIRER IT'S BECAUSE THEIR CLIENT INTENDS TO BUILD A STRATEGIC ALLIANCE WITH THE TARGET AND ISN'T A TRUE CORPORATE RAIDER THEIR EARLIER MORE ABSOLUTIST APPROACH IN THE '80S MADE ECONOMIC SENSE THEN BECAUSE THERE WERE SO MANY CLIENTS SEEKING TO DEFEND THEMSELVES FROM RAIDS AND SO MANY LAW FIRMS SEEKING THEIR BUSINESS WACHTELL LIPTON HAD SOMETHING EXTRA TO SELL ITS PASSION PASSION IS A MARKETING TOOL SO LAWYERS MAY BE PASSIONATE ABOUT AN ISSUE BECAUSE THEY RECOGNIZE THAT THEIR POSITION WILL ATTRACT CLIENTS WHO LIKE THEIR POSITION ON THE ISSUE SAYS STEPHEN GILLERS A PROFESSOR AT NEW YORK UNIVERSITY WHO STUDIES THE LEGAL PROFESSION PASSION PAID HANDSOMELY IN THE CASE OF WACHTELL LIPTON THE FIRM'S REPUTATION FOR SKILLFUL AND PRINCIPLED ANTITAKEOVER WORK HELPED WIN IT THE HIGHEST PROFITS PER PARTNER OF ANY LAW FIRM IN THE COUNTRY DURING THE LATE 1980S ACCORDING TO THE AMERICAN LAWYER MAGAZINE'S ANNUAL SURVEY OF LAWFIRM EARNINGS AND IT KEPT THE FIRM AMONG THE NATION'S LEADERS IN THE NUMBERS OF DEALS HANDLED EACH YEAR EVEN THOUGH WITH UNDER 50 PARTNERS WACHTELL LIPTON WAS A FRACTION OF THE SIZE OF ITS MAIN COMPETITORS COMPANIES FACING POSSIBLE HOSTILE TAKEOVERS INCREASINGLY TURNED TO WACHTELL LIPTON AS THE FIRM'S REPUTATION GREW FOR INVENTIVE ANTITAKEOVER TACTICS HOLLY FARMS CORP RETAINED WACHTELL LIPTON IN ITS 1989 FIGHT AGAINST A HOSTILE BID BY TYSON FOODS INC LARGELY BECAUSE OF THAT REPUTATION SAYS R LEE TAYLOR II HOLLY FARMS' FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER THAT WAS WHAT THEY WERE FAMOUS FOR MR TAYLOR SAYS ALTHOUGH HOLLY FARMS LOST ITS EFFORT TO SHUN TYSON IN FAVOR OF A FRIENDLY MERGER WITH CONAGRA INC WACHTELL LIPTON'S TACTICS RESULTED IN A TERRIFIC DEAL FOR THE SHAREHOLDERS HE SAYS YET WACHTELL LIPTON'S SWITCH IN THE PARAMOUNT FIGHT SHOWS HOW DIFFICULT IT HAS BECOME FOR MERGERANDACQUISITION LAWYERS TO STICK TO A NARROW SPECIALTY NOW THAT HIGHLY LEVERAGED HOSTILE TAKEOVERS ARE LESS FREQUENT MR WACHTELL DECLINED TO COMMENT ON THE FIRM'S DECISION TO REPRESENT QVC EXCEPT TO SAY THAT WE AS A MATTER OF POLICY HAVEN'T REPRESENTED PEOPLE WHO COULD FAIRLY BE CHARACTERIZED AS CORPORATE RAIDERS IN THE DELAWARE COURT MR WACHTELL SOUGHT TO PORTRAY QVC'S OFFER NOT AS A HOSTILE MOVE BUT AS A BID IN AN AUCTION PROCESS PARAMOUNT TRIGGERED BY ITS PROPOSED SALE TO VIACOM INC WACHTELL LIPTON ALSO SAID ITS CLIENT WASN'T A HOSTILE BIDDER WHEN IT REPRESENTED AMERICAN TELEPHONE & TELEGRAPH CO IN ITS CASH OFFER FOR NCR CORP IN 1991 LAWYERS OUTSIDE THE FIRM CONTEND THAT NO MATTER HOW MUCH WACHTELL LIPTON TRIES TO DISGUISE ITS WORK FOR ACQUIRERS TAKING ON CLIENTS SUCH AS QVC AND AT&T PUTS THE FIRM SQUARELY INSIDE THE CAMP OF THE BIDDERS IT LONG DERIDED THEY WILL ARGUE THAT ADVISING QVC IS NOT A SWITCH AS THEY DID IN THE TELEPHONE CASE SAYS JOSEPH FLOM ONE OF WALL STREET'S PREMIER TAKEOVER SPECIALISTS AT RIVAL SKADDEN ARPS SLATE MEAGHER & FLOM BUT HE ADDS IT IS A SWITCH THE TIMES ARE DIFFERENT I DON'T SEE ANYTHING WRONG WITH THEM SWITCHING IN A 1985 ARTICLE ON THE EDITORIAL PAGES OF THE WALL STREET JOURNAL MR LIPTON WROTE THAT TAKEOVER ABUSES HAVE BECOME A PRESSING NATIONAL PROBLEM CITING THE SURGE IN TWOTIER FRONTENDLOADED BOOTSTRAP BUSTUP JUNKBOND TAKEOVERS THE PARAMOUNT BID WHILE MUCH LESS LEVERAGED THAN MANY 1980S DEALS IS ALSO A FRONTENDLOADED TWOTIER OFFER MEANING THAT QVC WOULD PAY LESS MONEY FOR SHARES BOUGHT AFTER IT GAINS CONTROL OF PARAMOUNT THAN IT WOULD PAY SHAREHOLDERS WHO TENDER ON THE FRONT END MR LIPTON DIDN'T RETURN PHONE CALLS SEEKING COMMENT A CALIFORNIA COMPANY IS CHALLENGING A US CUSTOMS SERVICE DETERMINATION THAT MERCHANDISE IT SOUGHT TO IMPORT WAS MANUFACTURED IN A CHINESE PRISON FACTORY THE CASE IS BELIEVED TO BE THE FIRST TO QUESTION A US CUSTOMS SERVICE DECISION ON ALLEGED PRISONMADE GOODS SINCE PASSAGE OF THE SMOOTHAWLEY TARIFF ACT OF 1932 CONGRESS HAS PROHIBITED THE IMPORTATION OF SUCH PRODUCTS THE GOVERNMENT SAYS THAT 49 JINMABRAND DIESEL ENGINES IMPORTED FROM THE GOLDEN HORSE DIESEL ENGINE FACTORY IN YUNNAN PROVINCE WERE PRODUCED BY PRISON LABOR FOLLOWING AN INFORMANT'S TIP AND SUBSEQUENT SUPPORTING INFORMATION THE ENGINES WERE IMPOUNDED IN 1991 AFTER THEY ENTERED THE US IN LOS ANGELES CHINA DIESEL IMPORTS INC THE CALIFORNIABASED CONCERN THAT IMPORTED THE ENGINES HAS SAID THAT GOLDEN HORSE IS NOT A FORCEDLABOR CAMP AND HAS DENIED THE INVOLVEMENT OF CONVICTS IN THE PRODUCTION OF THEIR ENGINES JAMES ZIMMERMAN AN ATTORNEY FOR THE COMPANY SAID THAT HIS CLIENT'S CASE HAS BEEN MIRED IN POLITICS BECAUSE OF THE DEBATE OVER RENEWAL OF CHINA'S MOSTFAVOREDNATION TRADE STATUS WHICH EXPIRES IN JUNE SECRETARY OF STATE WARREN M CHRISTOPHER SAID EARLIER THIS MONTH THAT THE CLINTON ADMINISTRATION WON'T RECOMMEND RENEWAL OF THE FAVORABLE STATUS UNLESS IT OBSERVES PROGRESS IN HUMAN RIGHTS MARGARET A JACOBS CONTRIBUTED TO THIS COLUMN 9311190005 931119 MARKETING & MEDIA NEW YORK TIMES CO NYNEX TO DEVELOP TEST INTERACTIVE FAX SERVICE NEW YORK NEW YORK TIMES CO AND NYNEX CORP SAID THEY WILL JOINTLY DEVELOP AND TEST AN INTERACTIVE FAX SERVICE THE SERVICE TO BE LAUNCHED IN THE SPRING IN THE NEW YORK AREA WILL ALLOW CUSTOMERS TO RECEIVE NEWS AND INFORMATION BY FAX AND CHOOSE WHEN AND WHERE THEY RECEIVE IT CUSTOMERS WILL HAVE THE OPTION OF HAVING STORIES SENT TO A HOME FAX OR TO ANOTHER LOCATION WHEN TRAVELING ABOUT 1000 NEW YORK TIMES SUBSCRIBERS ARE EXPECTED TO PARTICIPATE IN THE TEST WHILE PRICING HASN'T BEEN DETERMINED SOME PARTICIPANTS WILL PAY FOR THE SERVICE WHILE OTHERS WILL RECEIVE THE SERVICE FOR FREE SAID PETER RENNER NYNEX DIRECTOR OF BUSINESS DEVELOPMENT THE REGIONAL BELL TELEPHONE COMPANY EXPECTS TO SUBSIDIZE THE COST OF THE FAX FOR THE DURATION OF THE TRIAL IT'S A LOWCOST STARTER KIT TO PARTICIPATE IN THE INFORMATION HIGHWAY THAT IS COMING MR RENNER SAID OF THE NEW SERVICE THE NEW YORK TIMES IS CURRENTLY WORKING WITH A NUMBER OF VENDORS TO PROVIDE A VARIETY OF ELECTRONIC SERVICES ACROSS THE US BUT THE NYNEX AGREEMENT REPRESENTS THE FIRST TIME THE PUBLISHING COMPANY HAS TEAMED WITH A REGIONAL BELL PHONE COMPANY A TIMES SPOKESMAN SAID A FAX MANUFACTURER MAY BE BROUGHT IN TO THE VENTURE AS A THIRD PARTNER MR RENNER SAID HE SAID NYNEX IS EXPLORING THE POSSIBILITY OF HAVING A MANUFACTURER CUSTOMIZE LOWCOST FAX MACHINES FOR THE HOME MARKET EVEN AT THE LOW END FAX MACHINES ARE STILL PRICEY FOR THE HOME MARKET AT AROUND 400 NYNEX BELIEVES THE COST WOULD HAVE TO DROP TO 100 TO 200 TO MAKE THEM ATTRACTIVE TO THE HOME MARKET MR RENNER SAID 9311190004 931119 LEISURE & ARTS WESTERN GALLERIES LOOK EAST BY JOHN MCGINNIS HONG KONG LAST NOVEMBER DAVID LESTER DID EVERYTHING BUT SHOUT HURRY HURRY STEP RIGHT UP TO COBBLE TOGETHER THE FIRST ART ASIA FAIR HERE HE LOOSED A FLOOD OF PUBLICITY HE LINED UP PAINTER JAMES ROSENQUIST TO SIGN POSTERS FOR 20 A POP HE EVEN GOT DOWN ON HIS HANDS AND KNEES TO SHOW A REPORTER THAT HIS SHOW WOULD BE FULLY CARPETED THIS YEAR MR LESTER IS MORE RELAXED THE DEALERS HE'S ATTRACTED TO HONG KONG NOV 1822 HAVE CRAMMED THE COLONY'S CONVENTION CENTER WITH SO MANY IMPRESSIVE WESTERN PAINTINGS AND SCULPTURES AND A FEW CHINESE ONES TOO THAT ONE CAN ONLY WONDER WHAT THE FUTURE WILL BRING EVEN THOUGH LAST YEAR'S WHICH WAS THE FIRST WAS WELLORGANIZED AND HAD WORKS OF HIGH QUALITY THERE'S BEEN A GEOMETRIC PROGRESSION THIS YEAR SAYS MICHAEL FINDLAY A NEW YORKBASED SENIOR DIRECTOR OF CHRISTIE'S AUCTION HOUSE MANY OF THE WORLD'S BESTREGARDED ART GALLERIES HAVE ASSEMBLED FOR A DECEPTIVELY SIMPLE REASON NOWHERE ELSE IS THERE AN ART MARKET WITH AS MUCH POTENTIAL AS ASIA'S WHETHER YOU LIKE IT OR NOT SAYS NEW YORK DEALER PETER FINDLAY IF YOU'RE GOING TO PLAY THIS GAME FOR THE NEXT 20 OR 30 YEARS YOU'VE GOT TO BE IN THE FAR EAST BUT THIS ISN'T NEWS MORE PRESSING TO THOSE ASSEMBLED IS HOW EXACTLY WESTERN DEALERS SHOULD APPROACH THE ALTAR OF ASIA'S POSSIBILITY ASK THE EXHIBITORS AND YOU WON'T GET THE SAME ANSWER TWICE EVEN FROM THE SAME PERSON SOME DEALERS LOGICALLY ENOUGH ARE DISPLAYING WORKS BY WESTERN ARTISTS INFLUENCED BY ASIAN TRADITIONS NEW YORK'S ANDRE EMMERICH GALLERY FOR INSTANCE IS EMPHASIZING THE WORK OF ART ASIA COHEADLINER WITH FRANK STELLA DAVID HOCKNEY WHOSE EXPERIENCE WITH CHINESE SCROLL PAINTING MAKES HIS ART MORE ACCESSIBLE TO PEOPLE WHO COME AT ART FROM A BACKGROUND IN CHINESE CLASSICAL ART SAYS MR EMMERICH YET AT THE SAME TIME PEOPLE WHO KNOW WESTERN ART SEE FAR EASTERN ART THROUGH DAVID'S ART WITH A WHOLE NEW PERSPECTIVE LONDONBASED WADDINGTON GALLERIES HAS ALSO BROUGHT SOME BIG NAMES INCLUDING DEGAS DUBUFFET LEGER LICHTENSTEIN MATISSE MIRO PICASSO AND WARHOL AND PERHAPS BECAUSE EUROPE'S MARKET IS STILL DEPRESSED WADDINGTON STAFFERS ARE WILLING TO DO MORE EDUCATING AT ART ASIA THERE ARE A LOT OF YOUNG COLLECTORS AND THEY'RE VERY KEEN TO LEARN SAYS SIR THOMAS LIGHTON WADDINGTON'S MANAGING DIRECTOR I FIND THAT CHARMING TO DEAL WITH THE PRINCIPAL THING IS THAT THEY SHOULD FOLLOW THEIR GUT REACTION AND NOT BUY WHAT THEY THINK THEY OUGHT TO LIKE MARLBOROUGH FINE ART HAS BROUGHT ONE OF THE WIDEST RANGES OF WORK TO THE FAIR INCLUDING TANGDYNASTY MASTERPIECES 20THCENTURY BRITISH PAINTINGS METAL SCULPTURES INCLUDING SEVERAL BY FERNANDO BOTERO PAINTINGS BY THE LIKES OF PICASSO AND CHAGALL AND EVEN SOME EARTHENWARE POTTERY AS IT'S A NEW MARKET ONE HAS TO HAVE A SPREAD SAYS THE GALLERY'S GILBERT LLOYD BRAME & LORENCEAU OF PARIS HAS BROUGHT 40 OR SO FRENCH PAINTINGS WITH A HEAVY TILT TOWARD BARBIZON COUNTRYSIDES AND ITS PEOPLE HAVE DONE ENOUGH CHECKING TO FIND OUT THAT HONG KONG HAS TWO HORSERACING TRACKS AS WE DIDN'T KNOW WHAT WE WERE GOING TO SEE HERE SAYS FRANCOIS LORENCEAU WE TOOK ITEMS RANGING FROM 30000 TO 3 MILLION WE HAVE BEEN SELECTING FROM OUR INVENTORY PLEASANT SUBJECTS SUCH AS LANDSCAPES HORSES OTHERS WITH RELATION TO RACES WE HAVE PAINTINGS THAT ARE SEDUCTIVE BUT NOT THAT CALL ON TOO MUCH CULTURE ARE TOO MENTALLY DIFFICULT REQUIRE TOO MUCH KNOWLEDGE OF THE HISTORY OF PAINTING NEW YORK DEALER NANCY HOFFMAN'S WORKING STRATEGY FOR HER LESSERKNOWN ARTISTS COMES FROM DISCUSSIONS WITH LAST YEAR'S EXHIBITORS MANY PEOPLE WERE IN CONSENSUS THAT DARK COLORS WEREN'T APPROPRIATE CERTAIN KINDS OF ABSTRACT ART WAS NOT APPROPRIATE AND OVERSIZE ART WOULD NOT BE APPROPRIATE SHE SAYS ALSO WE WERE TOLD THAT PEOPLE HERE REALLY APPRECIATE FINE TECHNIQUE AS FORBIDDING AS ASIA MAY BE FOR WESTERN GALLERIES THE ASIAN ONES DON'T HAVE IT MUCH EASIER FOR ONE THING THEY HAVE TO GO UP AGAINST THE HEAVYWEIGHT PLAYERS FROM PARIS LONDON AND NEW YORK FOR ANOTHER THE HONG KONG AUDIENCE WANTS WESTERN ART EVEN THE CHINESE DEALERS WHO WERE HERE LAST YEAR AS CHINESE DEALERS ARE HERE THIS YEAR AS WESTERN DEALERS SAYS MR LESTER YOU'RE SEEING AN ESCALATION OF THE CULTURAL OUTLOOK IN HONG KONG NINE HONG KONG GALLERIES ARE EXHIBITING LAST YEAR PLUM BLOSSOMS FEATURED CHINESE REALIST PAINTER CHEN YIFEI THIS YEAR IT'S AMERICAN GLASS SCULPTOR DALE CHIHULY HO GALLERY BY CONTRAST IS SHOWING MOSTLY SMALLER WORKS BY CHINESE ARTISTS THE SEVENGALLERY TAIWAN CONTINGENT MEANWHILE IS HOPING TO BUILD AN EASTWEST BRIDGE OF ITS OWN MOSTLY THEY HAVE BROUGHT OIL PAINTINGS BY YOUNGER TAIWANESE ARTISTS THOUGH THERE ARE SOME IMPRESSIONISTINFLUENCED WORKS BY OLDER PAINTERS WE HAVE SOME ARTISTS WHO REALLY TRIED HARD TO COMBINE CHINESE ART AND WESTERN TRADITIONS SAYS LILY LEE FRIEDLICH DIRECTOR OF TAIWAN'S ART GALLERIES ASSOCIATION BECAUSE ART ASIA'S EMPHASIS HAS MOVED AWAY FROM ASIAN ART MR LESTER HAS PLANS FOR A NEW TRENDS SHOW HERE IN MARCH FEATURING EMERGING ARTISTS PRICES AT THAT SHOW WILL MATCH THE LABEL HE SAYS WITH NOTHING OVER 20000 FOR NEXT YEAR'S ART ASIA HE PLANS TO DOUBLE THE FLOOR SPACE AND ADD FURNITURE ANTIQUES AND CERAMICS FOR NOW THOUGH THE DEALERS REMAIN FOCUSED ON THE SHOW AT HAND AND ARE HOPING FOR AT LEAST A REPEAT OF THE 1992 FAIR'S 40000 PATRONS WE BELIEVE THAT THE PEOPLE WHO HAVE SUCCESS IN THEIR BUSINESS ALSO WANT TO HAVE SUCCESS IN THEIR WAY OF LIFE THIS IS THE CASE IN EUROPE SAYS MR LORENCEAU THIS COULD BE THE CASE IN ASIA MR MCGINNIS IS LEISURE & ARTS EDITOR OF THE ASIAN WALL STREET JOURNAL 9311190003 931119 INDUSTRY FOCUS HOTELS START SELLING AGAIN AS INDUSTRY BEGINS RECOVERY SAVVY INVESTORS LOOK FOR BARGAINS AMONG WELLKNOWN PROPERTIES ON BLOCK BY PAULINE YOSHIHASHI AND MITCHELL PACELLE STAFF REPORTERS OF THE WALL STREET JOURNAL FOR SALE SIGNS WHICH HAVE BEEN AS UBIQUITOUS AS MINIATURE SHAMPOO BOTTLES AT THE NATION'S HOTELS ARE BEING PLASTERED OVER WITH NEW BANNERS SOLD AFTER SEVERAL YEARS IN WHICH BUYERS WERE AS SCARCE AS PROFITS HOTELS ARE ONCE AGAIN CHANGING HANDS AS THE INDUSTRY BEGINS A GRADUAL RECOVERY WHILE THE LODGING BUSINESS AS A WHOLE ISN'T EXPECTED TO MAKE MUCH MONEY BEFORE 1995 SAVVY BUYERS ARE ALREADY ANGLING TO BUY UNDERPERFORMING HOTEL CHAINS WELLLOCATED URBAN PROPERTIES AND OVERLEVERAGED RESORTS HOPING TO CASH IN ON THE TURNAROUND THESE DAYS CHAINS SUCH AS WESTIN HOTELS & RESORTS AND RED ROOF INNS INC ARE HITTING THE AUCTION BLOCK ALONG WITH SPLASHY RESORTS AND URBAN HOTELS UP FOR GRABS ARE STALWARTS INCLUDING SAN FRANCISCO'S FOUR SEASONS CLIFT THE FOUR SEASONS AUSTIN IN TEXAS THE FOUR SEASONS VANCOUVER IN BRITISH COLUMBIA AND CALIFORNIA'S SANTA BARBARA BILTMORE AS WELL AS THE DORAL IN MIAMI BEACH AND BOTH THE MILLENIUM HOTEL AND MORGANS HOTEL IN NEW YORK CITY THE INDUSTRY IS PRIMED FOR A FULL RECOVERY IN THE NEXT COUPLE OF YEARS AND THERE'S BEEN VERY LITTLE NEW SUPPLY COMING ON SAYS ROGER S CLINE WHO HEADS ARTHUR ANDERSEN & CO'S WORLDWIDE HOTELCONSULTING PRACTICE THERE'S NO SHORTAGE OF INVESTOR CAPITAL NOW LOOKING AT HOTELS ANDERSEN'S RESEARCH SHOWS THAT US HOTELROOM DEMAND GREW AT AN AVERAGE ANNUAL RATE OF 263 FROM 1988 THROUGH 1992 WHILE SUPPLY GREW AT AN AVERAGE RATE OF 265 BUT IN 1992 ITSELF THE GROWTH IN DEMAND FINALLY OUTSTRIPPED SUPPLY GROWTH PAVING THE WAY FOR HIGHER OCCUPANCIES AND EVENTUALLY HIGHER ROOM RATES AND PROFITS IN THE PAST YEAR OR SO MANY OF THE HOTELS SOLD HAVE BEEN SMALLER PROPERTIES SUCH AS ROADSIDE MOTELS BOUGHT BY OWNEROPERATORS OR WEAKER PROPERTIES PEDDLED BY THE RESOLUTION TRUST CORP AND OTHER SELLERS OF DISTRESSED REAL ESTATE BUT THESE DAYS HIGHERQUALITY ASSETS ARE ON THE MARKET AS WELL AS EVIDENCED BY A CURRENT AUCTION THAT JAPAN'S AOKI CORP IS RUNNING FOR ITS UPSCALE WESTIN CHAIN THE CHAIN COULD FETCH AROUND 500 MILLION DEPENDING ON HOW THE SALE IS STRUCTURED FOR FOUR SEASONS SELLING SOME NORTH AMERICAN PROPERTIES WOULD FREE UP CASH TO HELP THE THE HIGHEND CHAIN SPREAD ITS FLAG IN THE LUCRATIVE EUROPEAN AND ASIAN MARKETS THE BUYING PUBLIC IS INTERESTED IN HOTEL ASSETS AND THE MARKET IS TURNING SAYS JOHN B RICHARDS SENIOR VICE PRESIDENT OF MARKETING AND PLANNING AT FOUR SEASONS REGENT HOTELS & RESORTS INDEED INVESTORS SEE HOTELS AS PROVIDING MORE UPSIDE POTENTIAL THAN OTHER TYPES OF COMMERCIAL REAL ESTATE BECAUSE THEY DECLINED MORE IN VALUE DURING THE DOWNTURN SAYS THOMAS ENGEL HEAD OF THE HOTELMANAGEMENT DIVISION OF EQUITABLE COS'S REALESTATE ARM BUT JON SIMON A PARTNER AT KPMG PEAT MARWICK WARNS THAT NOT ALL HOTELS ARE BARGAINS ESPECIALLY THOSE BUILT AS TAX SHELTERS IN THE EARLY 1980S THAT HAVEN'T EVER MADE A DIME YOU CAN'T LOOK AT HOTEL PRICES JUST ON THE BASIS OF REPLACEMENT COST FOR THE ASSET THE WAY OTHER REALESTATE ASSETS ARE FREQUENTLY VALUED HE SAYS ALSO NOT ALL INSTITUTIONAL OWNERS ARE WILLING TO WRITE DOWN HOTEL ASSETS TO PRACTICAL LEVELS MOREOVER THE RECOVERY WON'T BE SIMULTANEOUS FOR ALL TIERS OF THE MARKET AS RESORTS AND LIMITEDSERVICE NAME HOTELS CONTINUE TO OUTPACE THE MIDDLEMARKET FULLSERVICE HOTELS IN THE '80S WE ALL THOUGHT THAT THE FOUR AND FIVESTAR HOTELS WERE THE WAVE OF THE FUTURE SAYS JACK SCHAEFFER WHO HAS BROKERED MANY LARGE HOTEL SALES FOR SONNENBLICKGOLDMAN CORP A NEW YORKBASED REALESTATE FIRM I REMEMBER A HOTEL CONFERENCE IN THE 1980S WHEN SOMEONE STOOD UP AND PREDICTED THERE WOULD BE 1000ANIGHT ROOMS HE SAYS WHILE 1000 RATES AREN'T IN THE OFFING INCREASES IN WHAT BUYERS ARE WILLING TO PAY PER ROOM ARE STEPHEN RUSHMORE PRESIDENT OF HOSPITALITY VALUATION SERVICES A MINEOLA NY HOTELCONSULTING FIRM THAT ALSO INVESTS IN PROPERTIES NOTES THAT AVERAGE HOTEL PRICES PEAKED OUT AT ABOUT 80000 PER ROOM IN 1988 BEFORE DROPPING TO JUST 33000 A ROOM LAST YEAR THOUGH THE DROP PARTLY STEMS FROM FEWER LUXURY HOTELS BEING SOLD HE PREDICTS THAT HOTEL VALUES WILL REACH RECORD LEVELS IN THREE TO FIVE YEARS IN PART BECAUSE HE EXPECTS AVERAGE ROOM RATES TO RISE AT TWICE THE RATE OF INFLATION IN THE NEXT TWO YEARS ALTHOUGH SALES ARE EXPECTED TO OCCUR ACROSS THE COUNTRY CITIES SUCH AS NEW YORK AND RESORT AREAS ARE LIKELY TO BE HOT SPOTS BECAUSE OF SHARPLY REDUCED PRICES AND PROSPECTS FOR GROWTH THE DORAL TELLURIDE SKI RESORT FOR EXAMPLE RECENTLY WAS BOUGHT FOR LESS THAN A THIRD OF ITS ORIGINAL 100 MILLION COST BY A MORGAN STANLEY & CO FUND AND PRIVATE INVESTORS SOME ALSO POINT TO DEPRESSED HAWAII RESORT HOTELS AS A SPECIAL CASE BECAUSE OF THE STATE'S LONGTERM POSITION AS A US VACATION MARKET AND SOME OF THE STRATOSPHERIC HOTEL DEALS CUT DURING THE BOOM YEARS THE KAHALA HILTON OWNED BY PRIVATE INVESTORS AND MANAGED BY BASS PLC'S HILTON INTERNATIONAL CHAIN AND THE KONA HILTON MANAGED BY HILTON HOTELS CORP OF BEVERLY HILLS AND ALSO OWNED BY PRIVATE INVESTORS BOTH ARE NEARING SALE AGREEMENTS PEOPLE FAMILIAR WITH THE TALKS SAY THE HYATT REGENCY WAIKIKI BOUGHT IN 1986 BY JAPAN'S AZABU CORP FOR 245 MILLION IS IN THE MIDST OF FORECLOSURE AND THE HYATT REGENCY WAIKOLOA WAS JUST SOLD TO A GROUP LED BY COLONY CAPITAL INC THE NEW WAVE OF SALES IS LIKELY TO BE RIDDEN BY FRESH BUYERS IN THE MARKET SINCE THE VERY WORDS HOTEL AND REAL ESTATE STILL SEND CHILLS THROUGH MANY MAJOR US INSURERS AND FINANCIAL INSTITUTIONS JAPANESE BANKS AND OTHERS THAT LOADED UP ON SUCH PROPERTIES DURING THE 1980S WHILE A FEW LARGE CHAINS SUCH AS HILTON HOTELS AND ITT CORP'S SHERATON UNIT ARE ACQUIRING PROPERTIES MOST BIG NATIONAL AND INTERNATIONAL NAME CHAINS ARE INTENT ON SELLING MANAGEMENT CONTRACTS NOT BUYING REAL ESTATE MR SCHAEFFER OF SONNENBLICKGOLDMAN BELIEVES THAT STRATEGIC OFFSHORE BUYERS MANY OF THEM CHINESE AND SOUTHEAST ASIAN AND A FEW HOTEL ACQUISITION FUNDS SOME CAPITALIZED BY EUROPEAN INVESTORS WILL BECOME MAJOR HOTEL BUYERS AND DOMESTIC FINANCIAL PLAYERS SUCH AS THE LEVERAGEDBUYOUT FIRM KOHLBERG KRAVIS ROBERTS & CO AND A MORGAN STANLEY REALESTATE FUND ALSO ARE WEIGHING IN EARLIER THIS WEEK MORGAN STANLEY'S FUND AGREED TO ACQUIRE RED ROOF INNS INC FOR 620 MILLION IN CASH AND DEBT ASSUMPTION IN SHARP CONTRAST TO THE BOOM YEARS BUYERS ARE EXPECTED TO USE FAR LESS REALESTATEBASED LEVERAGED FINANCING AND WILL BE MUCH MORE ATTENTIVE ABOUT DUE DILIGENCE BEFORE THEY SIGN ON THE DOTTED LINE BEFORE PAYING 202 MILLION FOR THE NEW YORK PALACE HOTEL FOR EXAMPLE REPRESENTATIVES OF THE ROYAL FAMILY OF BRUNEI HIRED ACCOUNTING AND LAW FIRMS TO COMB THE FINANCIAL RECORDS OF THE FORMER HELMSLEY PALACE THEY FLEW IN AN ENGINEER FROM THE WEST COAST AND EVEN HIRED A PHOTOGRAPER TO SPEND THREE DAYS PHOTOGRAPHING THE ARCHITECTURAL DETAILS OF THE PROPERTY THIS ROUND OF BUYING AND SELLING ALSO WILL RESHAPE THE INDUSTRY IN OTHER WAYS PARTICULARLY AS SMALLER HOTEL BRANDS ARE CONSOLIDATED WE'LL CONTINUE TO SEE THE ELIMINATION OF A LOT OF INDEPENDENTS THAT GO TO CHAINS AND WE'LL ALSO SEE STRONGER CHAINS TAKE OVER PROPERTIES OF WEAKER OR SMALLER ONES SAYS STEPHEN BOLLENBACH PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HOST MARRIOTT CORP WHICH OWNS A LARGE HOTEL REALESTATE PORTFOLIO THE KONA HILTON IN HAWAII ISN'T THE SUBJECT OF SALE DISCUSSIONS AS INCORRECTLY REPORTED IN LAST FRIDAY'S INDUSTRY FOCUS ARTICLE ON HOTEL ASSET SALES ALSO HILTON INTERNATIONAL IS OWNED BY LADBROKE PLC NOT BASS PLC AS REPORTED 9311190002 931119 ECONOMY CONFEREES CLEAR COMPROMISE BILL FOR RTC FUNDS VOTE FOLLOWED RESOLUTION OF ISSUE OF AUTHORITY TO SUE S&L OFFICIALS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE AND SENATE CONFEREES BROKE A PROLONGED LOGJAM BY APPROVING COMPROMISE LEGISLATION TO PROVIDE FUNDING FOR THE RESOLUTION TRUST CORP THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY THE CONFEREES APPROVED THE BILL ON A VOICE VOTE AFTER RESOLVING A LAST AND ESPECIALLY TROUBLESOME ISSUE HOW SWEEPING TO MAKE A TWOYEAR EXTENSION OF THE STATUTE OF LIMITATIONS COVERING THE RTC'S LEGAL AUTHORITY TO SUE OFFICERS DIRECTORS OR OTHERS INVOLVED IN A THRIFT'S FAILURE THAT POWER WOULD BE LENGTHENED TO FIVE YEARS FROM THREE YEARS AS APPROVED IN BOTH THE SENATE AND HOUSE RTC BILLS BUT LATE YESTERDAY AFTERNOON THE CONFEREES AGREED TO THE HOUSE VERSION WHICH WOULD EXTEND THE STATUTE OF LIMITATIONS ONLY FOR FRAUD AND OTHER INTENTIONAL WRONGDOING BUT SEN HOWARD METZENBAUM D OHIO PUSHED UNSUCCESSFULLY FOR A SENATE PROVISION THAT WOULD EXTEND THE COVERAGE MORE BROADLY TO INCLUDE NEGLIGENCE MANY OF THE RTC'S ENFORCEMENT CASES ALLEGE NEGLIGENCE RATHER THAN FRAUD THE BILL IS LIKELY TO GAIN APPROVAL BY THE HOUSE AND SENATE AND PRESIDENT CLINTON IS EXPECTED TO SIGN IT IT WOULD PROVIDE UP TO 183 BILLION IN FUNDING FOR THE RTC WHICH WOULD PERMIT THE AGENCY TO DISPOSE OF ABOUT 65 S&LS THAT IT HAS BEEN HANGING ONTO BECAUSE IT LACKS THE MONEY TO MAKE FULL PAYOFFS TO THE THRIFTS' DEPOSITORS SOME ANALYSTS INCLUDING THE CONGRESSIONAL GENERAL ACCOUNTING OFFICE HAVE ESTIMATED THAT THE RTC WON'T NEED 183 BILLION AND SEN METZENBAUM REITERATED THAT BELIEF DURING YESTERDAY'S SESSION HE PRESENTED NEW FIGURES WHICH THE GAO OBTAINED FROM THE RTC INDICATING THAT THE RESCUE AGENCY WILL NEED ONLY ABOUT 11 BILLION MORE AND MUCH LESS THAN THAT IF IT DIPS INTO LOSS RESERVES THE CONFEREES ALSO APPROVED RECENT COMPROMISES ON SOME OTHER DIFFERENCES WHICH HAD BEEN TENTATIVELY RESOLVED IN RECENT DAYS FOR THE MOST PART THE SENATORS ON THE PANEL ACCEDED TO THE HOUSE VERSION WHICH THAT BODY HAD APPROVED ONLY NARROWLY ON POSTRTC FUNDING FOR FAILED THRIFTS IN THE FUTURE THE CONFEREES ESSENTIALLY ADOPTED THE HOUSE BILL'S MORE PARSIMONIOUS PROVISION THIS WOULD AUTHORIZE AS MUCH AS 8 BILLION FOR THE FEDERAL DEPOSIT INSURANCE CORP'S S&L FUND BUT BEFORE ANY OF THAT COULD BE APPROPRIATED SOME GOVERNMENT CERTIFICATIONS WOULD BE REQUIRED THAT BUILDING UP THE FUND BY BOOSTING THRIFTS' INSURANCE PREMIUMS RATHER THAN USING THE AUTHORIZED TAXPAYER MONEY WOULD HARM THRIFTS THE SENATE VERSION WOULD HAVE BOTH AUTHORIZED AND APPROPRIATED 85 BILLION OUTRIGHT FOR THE FDIC FUND WHILE SUBJECTING APPROPRIATION OF AN ADDITIONAL 75 BILLION TO CERTIFICATIONS OF INDUSTRY HARM WITHOUT SUCH FEDERAL SPENDING THE CONFEREES ALSO AGREED TO A HOUSE PROVISION THAT WOULD PROD THE RTC TO PROVIDE MORE CONTRACTS FOR SUCH THINGS AS LEGAL WORK AND ASSET SALES TO BLACK AND HISPANIC BUSINESSES THAN IT DID IN THE PAST THE AGENCY HAS BEEN MOVING IN THAT DIRECTION UNDER THE CLINTON ADMINISTRATION THE COMPROMISE INCLUDED LANGUAGE SOUGHT BY THE SENATE CONFEREES EMPHASIZING THAT THE INCREASED FOCUS ON MINORITY CONTRACTING SHOULDN'T BE AT THE EXPENSE OF SUCH GROUPS AS WHITE WOMEN AND THAT THE RTC'S COSTEFFICIENCY GOALS SHOULDN'T BE DILUTED GREG HITT CONTRIBUTED TO THIS ARTICLE 9311190001 931119 YOUR MONEY MATTERS WEEKEND REPORT KIDS AND MONEY LESSONS ON DOLLARS AND SENSE BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL IF IT SEEMS YOU SPEND YOUR WHOLE LIFE TELLING YOUR KIDS WHY THEY CAN'T HAVE THOSE 95 SNEAKERS OR THAT NEW BIKE THINK AHEAD REQUESTS FOR PARENTAL HANDOUTS ARE JUST GOING TO GET BIGGER AS THE KIDS GET OLDER AND MOVE FROM BIKES TO CARS TO COLLEGE TO HOME DOWN PAYMENTS A LOT OF PEOPLE AREN'T NECESSARILY HAPPY ABOUT THE WAY THEIR CHILDREN LOOK AT MONEY THEY JUST DON'T KNOW WHAT TO DO ABOUT IT SAYS KAREN SPERO A CLEVELAND FINANCIAL PLANNER KIDS WHO DON'T LEARN MONEY SKILLS MAY BE IN FOR A RUDE SHOCK WHEN THEY FINALLY GET OUT ON THEIR OWN BY THAT TIME MS SPERO SAYS THE CHILD PROBABLY HAS A MINDSET ABOUT MONEY THAT IS VERY UNREALISTIC FOR THE TIMES WE ARE IN LIKE BRUSHING TEETH FINANCIAL RESPONSIBILITY IS A HABIT THAT IS EASIEST TO ESTABLISH WHEN CHILDREN ARE YOUNG BUT TEACHING KIDS ABOUT MONEY IS A LONGTERM PROJECT THAT CAN TAKE A LOT OF PARENTAL TIME AND PATIENCE IT MEANS INCLUDING KIDS ON FINANCIAL DECISIONS THAT INVOLVE THEM AND BEING WILLING TO LET THEM MAKE THEIR OWN MISTAKES BOTH SCHOOLS AND PARENTS DO A PRETTY GOOD JOB TEACHING YOUNG CHILDREN THE BASICS LIKE MAKING CHANGE BUT IT APPEARS THAT THE EDUCATION PROCESS KIND OF STOPS THERE SAYS PORTER P MORGAN INVESTMENT STRATEGIST FOR BOSTONBASED LIBERTY FINANCIAL COS WHICH RECENTLY COMPLETED A STUDY ON KIDS AND MONEY PARENTS WHO WANT TO PICK UP THE SLACK WILL FIND THE FIRST STEP IS GETTING THEIR KIDS' ATTENTION YOU CAN'T JUST SIT DOWN AND SAY NOW I AM GOING TO TEACH YOU ABOUT MONEY' YOU HAVE TO BRING IT DOWN TO THEIR LEVEL SAYS MS SPERO THAT IS WHY I THINK ALLOWANCES ARE IMPORTANT OTHERS AGREE HAVING AN ALLOWANCE AND HAVING CONTROL OVER THAT MONEY IS PROBABLY THE BEST WAY FOR KIDS TO LEARN SAYS AMY NATHAN ASSOCIATE EDITOR OF ZILLIONS CONSUMER REPORTS' MAGAZINE FOR KIDS BUT DON'T JUST HAND YOUR CHILD A FEW BUCKS AND FORGET ABOUT IT IMPORTANT LESSONS ARE TAUGHT BOTH IN THE WAY THE ALLOWANCE ARRIVES AND WHERE IT GOES MANY PARENTS FOR EXAMPLE TIE THE WEEKLY PAYDAY TO FAMILY CHORES OTHERS GIVE A BASIC ALLOWANCE BUT PROVIDE EXTRA MONEY IN EXCHANGE FOR HOUSEHOLD RESPONSIBILITIES THE IDEA TO LINK WORK AND MONEY PARENTS LIKE TO SHOUT AND SCREAM THAT MONEY DOESN'T GROW ON TREES SAYS MR MORGAN OF LIBERTY FINANCIAL BUT WE NEED TO TEACH OUR KIDS WHERE IT DOES COME FROM IT COMES FROM WORK ONCE CHILDREN HAVE MONEY THEY HAVE TO LEARN HOW TO HANDLE IT BALANCING SPENDING AND SAVING YOU CAN DIVIDE THE ALLOWANCE INTO DIFFERENT JARS FOR DIFFERENT PURPOSES OR SET UP A HOME BANK OR EVEN A JUNIOR 401K IN WHICH YOU MATCH ANY AMOUNT YOUR CHILD SAVES THE VARIATIONS ARE ENDLESS THE IMPORTANT THING IS TO CREATE A SYSTEM THAT BOTH YOU AND YOUR KIDS LIKE SO THAT YOU WILL STICK WITH IT NEALE S GODFREY AUTHOR OF MONEY DOESN'T GROW ON TREES A PARENT'S GUIDE TO RAISING FINANCIALLY RESPONSIBLE CHILDREN HAS HER CHILDREN DIVIDE THEIR ALLOWANCES INTO THREE PARTS THE FIRST PART CAN BE SPENT RIGHT AWAY THE SECOND PART HAS TO BE SAVED FOR SOMETHING SPECIAL SUCH AS A WALKMAN OR A NEW BICYCLE AND THE FINAL THIRD IS FOR LONGTERM SAVINGS NAMELY COLLEGE TO MAKE THIS SYSTEM WORK HOWEVER YOU CAN'T BE SKIMPY WITH ALLOWANCE THE OLD 50 CENTS A WEEK IS MEANINGLESS MS GODFREY SAYS IF YOU GIVE THEM TOO LITTLE YOU ARE TEACHING THEM THAT IT IS EASIER TO BE ON THE WELFARE SYSTEM SO IN EXCHANGE FOR HOUSEHOLD DUTIES MS GODFREY GIVES HER TWO KIDS WEEKLY ALLOWANCES EQUAL TO THEIR AGES THE SEVENYEAROLD GETS 7 THE 10YEAROLD 10 ONCE A CHILD IS SAVING IT'S TIME TO LOOK AT INVESTMENTS SAVINGS ACCOUNTS ARE USUALLY THE FIRST STEP AND SOME BANKS OFFER PROGRAMS FOR YOUNG SAVERS WITH LOW MINIMUM INITIAL DEPOSITS ADMITTEDLY WITH PASSBOOK ACCOUNTS PAYING ONLY ABOUT 2 INTEREST THE RETURN ISN'T MUCH BUT A BANK ACCOUNT MAKES CHILDREN FEEL IMPORTANT AND IT GIVES THEM A GOOD WAY TO WATCH THEIR MONEY GROW MUTUAL FUNDS ARE A GOOD NEXT STEP PROVIDING A WAY TO DIVERSIFY EVEN A KIDSIZED PORTFOLIO MANY MUTUAL FUNDS TARGET THE CHILDREN'S MARKET WITH LOW MINIMUMS LIBERTY FINANCIAL HAS A 500 INITIAL MINIMUM AND ACCEPTS ADDITIONAL INVESTMENTS OF AS LITTLE AS 50 BOTH JANUS MUTUAL FUNDS AND TWENTIETH CENTURY FUNDS HAVE A 1000 MINIMUM FOR ACCOUNTS JANUS TAKES ADDITIONAL INVESTMENTS OF ANY AMOUNT WHILE TWENTIETH CENTURY HAS A 25 MINIMUM SOME FUNDS REQUIRE EVEN LOWER INITIAL INVESTMENTS OR EVEN WAIVE THEM ENTIRELY IF YOU SET UP AN AUTOMATIC INVESTMENT PROGRAM HERE A SET AMOUNT AS LITTLE AS 25 IN SOME CASES IS TAKEN DIRECTLY FROM YOUR CHILD'S BANK ACCOUNT EACH MONTH ONCE BOUGHT THE FUND WILL CREATE MAIL BUT DON'T JUST STICK THOSE STATEMENTS IN THE DESK DRAWER ADVISES MR MORGAN OF LIBERTY FINANCIAL SIT DOWN WITH THE KIDS AND GO OVER THOSE STATEMENTS CALCULATE WHAT THEIR VALUE IS THAT DAY TEACH THEM TO FOLLOW THEIR WEALTH ON A DAILY BASIS INDIVIDUAL STOCKS DO SOMETHING A MUTUAL FUND OFTEN CAN'T THEY CATCH A KID'S ATTENTION WHILE YOUR 12YEAROLD MAY HAVE A HARD TIME RELATING TO A GROWTHSTOCK FUND CHANCES ARE SHE OR HE WILL UNDERSTAND DISNEY OR RADIO SHACK OR NIKE SO WHEN THE ANNUAL REPORT COMES IT MAY ACTUALLY BE LOOKED AT AS PART OF THE PROCESS HOWEVER YOU HAVE TO LET CHILDREN MAKE MISTAKES MS SPERO FOR EXAMPLE HELPED HER NIECE CREATE A STOCK PORTFOLIO LAST YEAR SHE SUGGESTED THAT HER NIECE SELL NIKE BECAUSE SHE BELIEVED THE STOCK HAD TOPPED OUT THE NIECE DECIDED TO HOLD THE STOCK'S PRICE TUMBLED WATCHING THE NIECE DISREGARD HER ADVICE WAS HARD FOR ME TO DO MS SPERO SAYS BUT THE LESSON THE GIRL LEARNED WAS MORE IMPORTANT THAN THE FINANCIAL LOSS SUFFERED LENGTHENING THE TIME BETWEEN ALLOWANCES IS ANOTHER WAY OF SHIFTING MORE RESPONSIBILITY ONTO OLDER KIDS MOVING FROM A SMALL WEEKLY ALLOWANCE TO A LARGER MONTHLY ALLOWANCE BY THE TIME THE CHILD IS IN HIGH SCHOOL TEACHES BUDGETING AND YOU CAN EXPAND THE ALLOWANCE TO INCLUDE SUCH THINGS AS CLOTHING BUT WHEN YOU GIVE YOUR KIDS THE RESPONSIBILITY YOU HAVE TO BE WILLING TO LIVE WITH THEIR CHOICES WHEN YOUR DAUGHTER WHO NEEDS NEW SHOES DECIDES THAT SHE WANTS TO BLOW HER ENTIRE CLOTHING ALLOWANCE ON SOME HIGHPRICED JEANS DON'T BAIL HER OUT YOU'RE TEACHING HER THAT PEOPLE MAKE CHOICES WITH THEIR MONEY SOME ARE BETTER THAN OTHERS SOUND HARSH NOT AT ALL SAYS MS GODFREY KIDS LIKE THIS APPROACH YOU ARE EMPOWERING THEM TO RUN PARTS OF THEIR LIVES AS PART OF THAT EMPOWERMENT PROCESS DON'T SHY AWAY FROM OPEN DISCUSSION ABOUT OTHER FINANCIAL ISSUES THE WORLD IS MUCH SMARTER THAN IT WAS 20 YEARS AGO ABOUT FINANCIAL OPPORTUNITIES SAYS TIM KOCHIS A SAN FRANCISCO FINANCIAL PLANNER AND HE SAYS THAT ALSO MEANS THERE ARE MORE WAYS OF MAKING MISTAKES HERE ARE SOME ISSUES PARENTS SHOULDN'T OVERLOOK CREDIT CARDS IF YOU DON'T TEACH YOUR CHILDREN ABOUT THEM YOURSELF THEY MAY DISCOVER PLASTIC ALL ON THEIR OWN IN HIGH SCHOOL A LOT OF YOUNG PEOPLE ARE DIRECTLY SOLICITED BY CREDITCARD COMPANIES WITHOUT THE KNOWLEDGE OF THEIR PARENTS AND MAY RESPOND WITHOUT UNDERSTANDING WHAT IT MEANS SAYS MR KOCHIS YOU CAN START WITH AN AUTOMATICTELLERMACHINE CARD GIVING KIDS ACCESS TO SOME OF THEIR OWN MONEY IN A SAVINGS ACCOUNT THEN MOVE ON TO CREDIT CARDS EXPLAINING THEIR USE AS LOANS THAT MUST BE REPAID SAYS RUTH SUSSWEIN ASSISTANT DIRECTOR FOR BANKCARD HOLDERS OF AMERICA HERNDON VA TO MAKE SURE THEY UNDERSTAND THE CONCEPT SHE SUGGESTS ACTUALLY LOANING CHILDREN MONEY FOR SOME IMPORTANT PURCHASE AND CHARGING THEM INTEREST TAXES WILLIAM G BRENNAN A PARTNER AND FINANCIAL PLANNER WITH ACCOUNTANTS ERNST & YOUNG IN WASHINGTON SAYS ALL THREE OF HIS KIDS HELPED PREPARE THEIR TAXES WHEN THEY WERE TEENAGERS WITH ONE SON THE FIRST TIME TOOK 12 HOURS AND MOST OF THE TIME WAS SPENT MOANING ABOUT WHY HE HAD TO DO IT HE SAYS MS GODFREY INTRODUCES THE CONCEPT OF TAXES EVEN YOUNGER SHE ASSESSES A FAMILY TAX ON HER KIDS' ALLOWANCES WITH 15 GOING TOWARD A FAMILY PURCHASE RIGHT NOW IT'S A TRIP TO THE GALAPAGOS ISLANDS JONATHAN POND A WATERTOWN MASS FINANCIAL ADVISER AND AUTHOR FOR EXAMPLE GIVES HIS SIXYEAROLD DAUGHTER A FEW DOLLARS A WEEK FOR DOING CHORES AT HIS OFFICE SO I CAN KICK 150 A YEAR INTO HER IRA HE SAYS THE LESSONS HE HOPES THIS ACCOUNT EVENTUALLY WILL TEACH THE IDEA OF TAX SHELTER THE VALUE OF TAX DEFERRAL AND THE NEED FOR LONGTERM INVESTMENT 9311180180 931118 BOEING WINS HUGE SOUTHWEST AIR ORDER GIVING 737 UPGRADE PLANS A GREEN LIGHT BY JEFF COLE AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL BOEING CO WON A 25 BILLION ORDER FOR 63 PLANES FROM SOUTHWEST AIRLINES ENABLING THE MANUFACTURER TO GO AHEAD WITH ITS NEW 737X LINE OF SMALL AIRLINERS THE ORDER WAS LARGER THAN THE THRIVING DALLAS CARRIER HAD BEEN EXPECTED TO MAKE THE NEW 737X LINE WILL FEATURE MOREPOWERFUL ENGINES AND NEW WING AND TAIL DESIGNS THAT ALLOW THE PLANES TO FLY FARTHER AND FASTER THAN THE EXISTING JETS BOEING IS COUNTING ON ITS 1 BILLION PROGRAM FOR UPGRADING THE 737 LINE TO BOOST ITS EFFORTS TO COMBAT INROADS MADE BY EUROPE'S AIRBUS INDUSTRIE CONSORTIUM INTO THE SMALLJETLINER MARKET FOR SOUTHWEST WHICH FLIES ONLY BOEING 737S THE PURCHASE WILL BRING ADVANCED JETS AT A DISCOUNT PRICE PLANES WILL BE DELIVERED BETWEEN 1997 AND 2001 A PERIOD WHEN THE CARRIER MAY BE LOOKING FOR AIRCRAFT TO FLY TRANSCONTINENTAL ROUTES OR OTHER LONG DISTANCES AT THE SAME TIME SOUTHWEST PRESERVES THE USE OF A SINGLE AIRCRAFT TYPE HELPING WITH ITS TOPPRIORITY ON CONTROLLING MAINTENANCE AND TRAINING COSTS SOUTHWEST CHAIRMAN HERB KELLEHER SAID THAT HIS EXISTING 737 MODELS SERVE THE CARRIER'S HIGHFREQUENCY SHORTHAUL OPERATIONS WELL BUT BOEING'S BUSINESS OFFER COMBINED WITH THE ADDITIONAL ATTRIBUTES AND OPERATIONAL FLEXIBILITY OF THE 737X MADE THE ECONOMICS OF THIS AGREEMENT SUPERIOR THE BOEING PURCHASE IS THE LARGEST ORDER IN THE 22YEAROLD CARRIER'S HISTORY JOHN OWEN SOUTHWEST'S TREASURER SAID THE AIRLINE ULTIMATELY AGREED TO BUY THE PLANES BECAUSE THEY USE 5 TO 6 LESS FUEL AND ARE QUIETER THAN THE CURRENT SOUTHWEST VERSION OF THE 737 MR OWEN SAID SOUTHWEST PLANS TO PAY FOR THE AIRCRAFT WITH INTERNALLY GENERATED FUNDS AND WILL DO EXTERNAL FINANCING AS NEEDED HE WOULDN'T SAY WHERE THE AIRLINE WILL DEPLOY THE JET BUT SAID THAT SOUTHWEST'S OLDER 737200S WILL BE RETIRED AS THE NEWER PLANES COME ON LINE SOUTHWEST CURRENTLY FLIES 157 JETS SOUTHWEST'S EXISTING ORDERS FOR 50 BOEING 737300S FOR DELIVERY BETWEEN 1994 AND 1997 ARE UNAFFECTED BY THE NEW ORDER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BOEING SHARES JUMPED 3125 TO 4075 WHILE THE ANNOUNCEMENT WAS MADE AT THE CLOSE OF THE MARKET SPECULATION ABOUT THE ANNOUNCEMENT BEGAN AFTER THE COMPANY SAID IT WAS PLANNING A NEWS CONFERENCE SOUTHWEST SHARES CLOSED AT 3350 OFF 375 CENTS ALSO ON THE BIG BOARD THE SALE IS TIMELY FOR BOEING PARTLY BECAUSE THE COMPANY CAN USE A BOOST IN ITS ORDER BOOK AND ITS IMAGE AS IT FACES PRODUCTION CUTS AND ORDER DEFERRALS AMID ONE OF THE WORST DECLINES EVER IN ITS INDUSTRY THE TIMING ALSO IS FORTUITOUS BECAUSE THE COMPANY IS CURRENTLY ENTERTAINING HUNDREDS OF IMPORTANT ASIAN GOVERNMENT AND AIRLINE OFFICIALS GATHERED IN SEATTLE FOR THE ASIA PACIFIC ECONOMIC COOPERATION CONFERENCE SOUTHWEST'S 737X PLANES WILL BE POWERED BY CFM563XS ENGINES PRODUCED BY CFMI A JOINT VENTURE OF GENERAL ELECTRIC CO AND SNECMA OF FRANCE THE ENGINE PORTION OF THE ORDER IS MORE THAN 600 MILLION SOME POTENTIAL CUSTOMERS HAVE QUESTIONED WHETHER BOEING CAN MEET THE PROMISED MAINTENANCE SAVINGS AND PERFORMANCE GOALS THAT ARE ESSENTIAL TO TURNING BACK AN AIRBUS SMALLJET LINE THAT INCLUDES ITS A320 A321 AND A319 PLANES IT'S GOING TO KILL 'EM RESPONDED GORDON BETHUNE GENERAL MANAGER OF THE BOEING DIVISION THAT MAKES THE 737 IN AN INTERVIEW MR BETHUNE AND BOEING'S CHIEF 737X ENGINEER HARRY ARNOLD SAID THE COMPANY IS ELIMINATING HUNDREDS OF PARTS ON THE PLANE BY CREATING SIMPLER SYSTEMS THAT WILL BE MORE EFFICIENT AND COST LESS TO MAINTAIN MR BETHUNE CALLED THE PLANE A ROCKET THIS LITTLE AIRPLANE WILL GO TO 40000 FEET AND GO ANYWHERE FAST INCLUDING NONSTOP FLIGHTS ACROSS THE COUNTRY SUCH AS BOSTON TO SAN FRANCISCO AGAINST THE WIND WITH THE SOUTHWEST ORDER IN PLACE BOEING AND RIVAL US PRODUCER MCDONNELL DOUGLAS CORP NOW ARE LEFT HOPING FOR A MAJOR ORDER SOON FROM THE SAUDI ARABIAN CARRIER SAUDIA 9311180179 931118 UNION SALTS' INFILTRATE CONSTRUCTION INDUSTRY BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL WAYNE DEVINE LOVES TO BE FIRED A PINK SLIP IS A BADGE OF HONOR FOR THE 33YEAROLD JACKSON MISS ELECTRICIAN WHO IS PART OF A BOLD NEW ORGANIZING CAMPAIGN BY THE NATION'S CONSTRUCTION UNIONS KNOWN AS COMET FOR CONSTRUCTION ORGANIZING MEMBERSHIP EDUCATION TRAINING THE CAMPAIGN GIVES INTENSIVE TRAINING TO SALTS INFILTRATORS WHO DO GRASSROOTS ORGANIZING BY ANSWERING HELPWANTED ADS AND HAUNTING TEMPORARY AGENCIES AND CONSTRUCTION SITES THOUSANDS OF SALTS MOST OF THEM UNEMPLOYED WORKERS ARE TRYING TO ORGANIZE NONUNION COMPANIES FROM WITHIN IF FIRED FOR THEIR ACTIVITIES THEY SIMPLY FILE CHARGES OF UNFAIR LABOR PRACTICES WITH THE NATIONAL LABOR RELATIONS BOARD IF THESE GUYS DISCRIMINATE AGAINST US WE'RE GOING TO COST THEM MONEY VOWS MR DEVINE A VETERAN OF TWO DOZEN SALTING EFFORTS IF THEY DON'T DISCRIMINATE AGAINST US WE'RE GOING TO GET ON THEIR JOBS AND ORGANIZE COMET WAS BORN IN THE LATE 1980S AT A TIME WHEN UNIONS WERE STRUGGLING TO HOLD ONTO A 25 SHARE OF THE 400 BILLION CONSTRUCTION MARKET DOWN FROM ABOUT 75 IN THE EARLY 1970S DEVELOPED BY THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS IBEW IT HAS SINCE SPREAD TO 14 OTHER UNIONS OVERALL COMET HASN'T CHANGED THE CONSTRUCTION UNIONS' FORTUNES AMID HIGH UNEMPLOYMENT FEW MAJOR NONUNION CONTRACTORS HAVE CAVED IN AND THE PERCENTAGE OF THE NATION'S 45 MILLION EMPLOYED CONSTRUCTION WORKERS WHO BELONG TO UNIONS REMAINS STALLED AT AROUND 20 THE UNIONS HAVE A LARGER MARKET SHARE THAN THEIR MEMBERSHIP FIGURES SUGGEST BECAUSE OF THEIR HIGHER WAGES BUT COMET IS CHANGING THE FACE OF A GROWING NUMBER OF INDIVIDUAL MARKETS IN SAN LUIS OBISPO CALIF FOR INSTANCE IBEW LOCAL 639 NOW HAS CONTRACTS WITH 24 OF 40 LOCAL CONTRACTORS UP FROM ONLY A HALF DOZEN FIVE YEARS AGO IN AUSTIN TEXAS THE UNION HAS SIGNED UP EIGHT CONTRACTORS IBEW MEMBERSHIP HAS NEARLY DOUBLED AND CONTRACTORS HAVE TROUBLE HIRING NONUNION HELP THE DENVER IBEW LOCAL HAS BROUGHT IN 500 NEW MEMBERS AND FORCED SOME CONTRACTORS TO STOP ADVERTISING FOR HELP IN THE NEWSPAPERS MEANWHILE SOME NLRB REGIONAL OFFICES ARE SWAMPED WITH UNFAIRLABORPRACTICES CASES SPAWNED BY THE CAMPAIGN AND IN A STRUGGLING INDUSTRY ALREADY BESET BY RAZORTHIN PROFIT MARGINS THE RESULTING LEGAL COSTS CAN MAKE IT TOUGHER FOR TARGETED COMPANIES TO COMPETE WITH UNION CONTRACTORS EVEN IF THEY DON'T ORGANIZE THEM THEY CAN HARASS THE HELL OUT OF THEM SAYS PETER COCKSHAW PUBLISHER OF A CONSTRUCTIONINDUSTRY NEWSLETTER I'M GETTING CALLS FROM NONUNION EMPLOYERS ALL OVER THE COUNTRY THE TERM SALTING COMES FROM THE MINING INDUSTRY WHERE PROMOTERS ONCE SCATTERED BITS OF PRECIOUS METALS AROUND MINES TO MAKE THEM APPEAR MORE VALUABLE WHILE NOT A NEW ORGANIZING TACTIC SALTING HAS PROVED PARTICULARLY EFFECTIVE IN THE BUILDING TRADES WHERE CONTRACTORS FREQUENTLY EMPLOY ADDITIONAL WORKERS TO COMPLETE INDIVIDUAL PROJECTS AND HIRING IS OFTEN LEFT TO JOB SUPERVISORS WITH LITTLE TRAINING OR EXPERIENCE IN LABOR LAW UNTIL COMET MOST CONTRACTORS HADN'T HAD TO WORRY ABOUT UNION INFILTRATION FOR MORE THAN A GENERATION MAINLY BECAUSE UNLIKE THEIR BRETHREN IN THE FACTORIES THE CONSTRUCTION UNIONS HADN'T DONE MUCH ORGANIZING IN THE LATE 1940S UNIONS REPRESENTED 87 OF ALL CONSTRUCTION WORKERS AND CONTRACTORS NEEDING SKILLED HELP HAD LITTLE CHOICE BUT TO SIGN A UNION CONTRACT AND HIRE UNION WORKERS WITH SUCH A STRANGLEHOLD THE UNIONS BARRED MEMBERS FROM NONUNION JOB SITES AND ALL BUT SHUNNED NEW RECRUITS PROSPECTIVE MEMBERS CAME IN THE FRONT DOOR AND WE RAN THEM OUT THE BACK DOOR RECALLS DON HERZOG BUSINESS MANAGER FOR THE IBEW LOCAL IN BILLINGS MONT BUT STARTING IN THE LATE 1960S A SERIES OF MAJOR ECONOMIC DOWNTURNS BATTERED THE UNIONS AND LARGE CORPORATIONS AND OTHER CUSTOMERS BEGAN STEERING PROJECTS TO CHEAPER NONUNION CONTRACTORS WHICH NOW DOMINATE THE INDUSTRY THE COMET SEMINARS' CENTRAL THEME IS ORGANIZING THOSE NONUNION CARPENTERS ELECTRICIANS AND IRONWORKERS WHO'S GOT OUR JOBS NOW THEY GOT OUR JOBS BELLOWS SQUAREJAWED IBEW ORGANIZER JIM RUDICIL AT A RECENT DALLAS SESSION WITHOUT THOSE GUYS WE ARE DEAD AT FIRST THE 75 UNION TRADESMEN GATHERED WERE SLOW TO ANSWER MR RUDICIL'S RAPIDFIRE QUESTIONS ABOUT JOBS LOST TO NONUNION WORKERS AND WHAT IF ANYTHING THEY HAD DONE ABOUT IT BUT THEIR RESPONSES QUICKENED AS MR RUDICIL PACED THE CAVERNOUS UNION HALL FOR HOURS MIXING KNUTE ROCKNESTYLE CALLS FOR ORGANIZING WITH REAMS OF HANDOUTS DETAILING RECENT LABORLAW LITIGATION TYPICAL WORKPLACE SAFETY VIOLATIONS AND CASE STUDIES OF SUCCESSFUL SALTING CAMPAIGNS BREAKING ONLY FOR A QUICK PIZZA LUNCH HE ALSO SHOWED A VIDEO FEATURING COMET COMBATING ADVICE FROM ONE CONTRACTOR GROUPS' LAWYERS AND ANOTHER TAPE OF AN IBEW SALT WALKING INTO A HAMMOND IND ELECTRICAL SHOP AND BOLDLY ANNOUNCING THAT HE WAS THERE TO ORGANIZE A THIRD SHOT A FEW DAYS BEFORE THE SEMINAR FEATURED A DOZEN LOCAL UNION ELECTRICIANS SOME IN IBEW CAPS AT A TEMPORARY AGENCY APPLYING FOR JOBS WE DON'T SEE THE OPENSHOP ELECTRICIAN ANY MORE AS A SECONDCLASS PERSON UNION ELECTRICIAN LARRY BILLMAN AN OCCASIONAL SALT SAID LATER WE'RE GOING TO REACH OUT AND ORGANIZE HIM BECAUSE IT IS A NECESSITY AFTER SUCH SEMINARS WHICH LAST FOR UP TO FOUR DAYS THE SALTS FAN OUT SEEKING JOBS AT NONUNION SITES A PRACTICE ONCE BANNED BY THEIR UNIONS THEIR GOAL IS TO CONVINCE WORKERS THAT AS UNION MEMBERS THEY WILL RECEIVE HIGHER PAY HEALTH COVERAGE AND PENSION BENEFITS ALONG WITH AN ORGANIZATION THAT WILL SERVE AS AN ADVOCATE ON ISSUES SUCH AS WORKPLACE SAFETY SOME GO IN COVERTLY BUT BOLSTERED BY RECENT NLRB DECISIONS GIVING ORGANIZERAPPLICANTS MANY OF THE SAME RIGHTS AS EMPLOYEES OTHERS PUT UNION ORGANIZER ON THEIR APPLICATIONS OR SHOW UP AT EMPLOYMENT OFFICES IN UNION JACKETS VIRTUALLY DARING THE COMPANY TO REJECT THEM THEY ARE COMING RIGHT IN AT YOUR FACE GRUMBLES ONE DALLAS CONSTRUCTION EXECUTIVE AFTER RIVIERA ELECTRIC INC DENVER ADVERTISED FOR 20 NEW APPRENTICES MORE THAN TWO DOZEN IBEW JOURNEYMEN APPLIED APPEARING AT THE COMPANY'S OFFICE WITH VIDEO RECORDERS TO FILM THE COMPANY'S REACTION RIVIERA REJECTED THE APPLICANTS AS OVERQUALIFIED BUT THE EXPERIENCE FORCED IT TO TIGHTEN ITS HIRING PROCEDURES RIVIERA REMAINS A NONUNION SHOP BUT AFTER OTHER LEGAL BATTLES WITH THE UNIONS IT AGREED TO HIRE A PERCENTAGE OF UNION WORKERS ON SOME OUTLYING JOBS THE ATTORNEY'S FEES CAN BE QUITE EXPENSIVE SAYS DON WHITE RIVIERA'S PRESIDENT CONTRACTORS' TRADE GROUPS ARE FIGHTING BACK WITH THEIR OWN SEMINARS TRAINING MANUALS AND VIDEOS OUTLINING ANTICOMET TECHNIQUES SOME TIPS REQUIRE JOB APPLICANTS TO APPEAR IN PERSON SO A SINGLE UNION MEMBER CAN'T DELIVER STACKS OF APPLICATIONS AVOID HELPWANTED ADS AND TEMPORARY SERVICES THUS PROVIDING FEWER OPPORTUNITIES FOR SALTS TO INFILTRATE LARGER CONTRACTORS MEANWHILE ARE BATTLING THE NLRB CHARGES IN COURT TRAINING JOB SUPERINTENDENTS IN LABOR LAWS AND IN SOME CASES HIRING ONLY WORKERS REFERRED BY OTHER NONUNION EMPLOYERS I AM ABSOLUTELY CONVINCED THAT FIVE YEARS FROM NOW THIS WILL NO LONGER BE AN ISSUE SAYS CHARLES HAWKINS SENIOR VICE PRESIDENT OF THE ASSOCIATED BUILDERS AND CONTRACTORS A TRADE GROUP BASED IN WASHINGTON DC BUT FOR NOW HE ADDS IT'S A SIGNIFICANT ASSAULT AND SMALLER ELECTRICAL CONTRACTORS LIKE SCOTT BOLEN OF TOLEDO OHIO ARE FINDING THE FIGHT COSTLY HE WAS HIT WITH A HALFDOZEN CLAIMS OF UNFAIR LABOR PRACTICES AFTER FIRING AN EMPLOYEE WHO TURNED OUT TO BE AN ORGANIZER THE CHARGES EVENTUALLY WERE DISMISSED BUT THE LEGAL FEES TOPPED 7000 ROUGHLY THE PROFIT HIS COMPANY WOULD MAKE WIRING SEVEN HOUSES I'M GOING TO GET INTO A DIFFERENT BUSINESS HE SAYS YOU CAN ONLY FIGHT THEM SO LONG AND MY POCKETS ARE ONLY SO DEEP 9311180178 931118 WHO'S NEWS LORAL CORP LORAL CORP NEW YORK LT GEN WILSON A DUTCH SHOFFNER WAS NAMED VICE PRESIDENT OF PLANNING AND DEVELOPMENT OF THE COMPANY'S MISSILES GROUP BASED IN DALLAS LT GEN SHOFFNER 55 YEARS OLD IS RETIRED FROM THE US ARMY WHERE HE MOST RECENTLY SERVED AS COMMANDER OF THE COMBINED ARMS COMMAND FORT LEAVENWORTH KAN THE MISSILES GROUP CONSISTS OF LORAL VOUGHT SYSTEMS AND LORAL AERONUTRONIC THE PARENT IS A HIGH TECHNOLOGY COMPANY THAT CONCENTRATES ON DEFENSE ELECTRONICS AND SPACE COMMUNICATIONS 9311180177 931118 WHO'S NEWS CROMPTON & KNOWLES CORP CROMPTON & KNOWLES CORP STAMFORD CONN LEO I HIGDON 47 YEARS OLD DEAN OF THE DARDEN SCHOOL AT THE UNIVERSITY OF VIRGINIA WAS ELECTED A DIRECTOR OF THE MAKER OF SPECIALTY CHEMICALS AND PLASTICPROCESSING EQUIPMENT INCREASING THE BOARD'S SIZE TO 11 9311180176 931118 FIRST MIDWEST BANCORP STOCK NAPERVILLE ILL FIRST MIDWEST BANCORP SAID ITS DIRECTORS AUTHORIZED THE REPURCHASE OF AS MANY AS 600000 SHARES OR 5 OF THE BANK HOLDING COMPANY'S COMMON STOCK OUTSTANDING 9311180174 931118 LUKENS TO REDUCE STAFF BY 7 COATESVILLE PA LUKENS INC CITING HIGH COSTS SAID IT WILL ELIMINATE 125 TO 150 JOBS OR 7 TO 9 OF ITS 1700 SALARIED WORKERS IN THE NEXT SIX MONTHS TO REDUCE THE NEED FOR LAYOFFS ABOUT 103 PEOPLE WILL BE OFFERED EARLYRETIREMENT PACKAGES DEPENDING ON HOW MANY TAKE THE OFFER THE STEELMAKER MAY TAKE A FOURTHQUARTER CHARGE A SPOKESMAN SAID THE COMPANY WON'T KNOW FOR FOUR TO SIX WEEKS WHETHER IT WILL TAKE THE CHARGE 9311180173 931118 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 35 DAYS 307 36 TO 59 DAYS 332 60 TO 89 DAYS 330 90 TO 159 DAYS 332 160 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 340 60 DAYS 340 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 269 TWO MONTHS 271 THREE MONTHS 283 SIX MONTHS 3 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 308 ONE MONTH 334 THREE MONTHS 337 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 327 60 DAYS 325 90 DAYS 324 120 DAYS 324 150 DAYS 324 180 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 7/16 3 5/16 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 7/16 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 622 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 698 60 DAYS 706 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 696 60 DAYS 706 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 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 9311180172 931118 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD AT AN AUCTION 21 BILLION CANADIAN DOLLARS US16 BILLION OF 575 BONDS DUE MARCH 1 1999 AT AN AVERAGE YIELD OF 5977 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9311180171 931118 JACOR SELLS COMMON STOCK CINCINNATI JACOR COMMUNICATIONS INC SAID IT SOLD 4750000 COMMON SHARES AT 12 A SHARE FOR GROSS PROCEEDS OF 57 MILLION NET PROCEEDS WILL BE USED TO FINANCE ACQUISITIONS OF RADIO PROPERTIES AND FOR GENERAL CORPORATE PURPOSES JACOR SAID IT MAY ALSO USE THE MONEY TO REPAY ALL OF ITS 41 MILLION IN LONGTERM DEBT DONALDSON LUFKIN & JENRETTE SECURTIES CORP AND SMITH BARNEY SHEARSON INC WERE MANAGING UNDERWRITERS THE OFFERING IS SCHEDULED TO CLOSE ON TUESDAY JACOR OWNS AND OPERATES RADIO STATIONS 9311180170 931118 STEEL OF WEST VIRGINIA EXPANDING HUNTINGTON WVA STEEL OF WEST VIRGINIA INC CITING STRONG DEMAND FOR ITS SPECIALTY STEEL PRODUCTS SAID IT WILL EXPAND ITS PLANT HERE TO INCREASE CAPACITY BY ABOUT 50 TO 260000 TONS A YEAR THE EXPANSION WHICH INCLUDES UPGRADING THE PLANT'S ROLLING MILL WILL COST ABOUT 14 MILLION AND WILL BE FUNDED WITH CASH AND BANK DEBT IT WILL BE COMPLETED NEXT YEAR WITHOUT DISRUPTING EXISTING OPERATIONS THE COMPANY SAID 9311180169 931118 MEN'S WEARHOUSE IN CREDIT PACT THE AGREEMENT BETWEEN THE RETAILER AND NATIONSBANK UNION BANK AND WELLS FARGO BANK PROVIDES 55 MILLION FOR GENERAL CORPORATE PURPOSES 9 MILLION FOR EQUIPMENT FINANCING AND 5 MILLION FOR REAL PROPERTY FINANCING MEN'S WEARHOUSE SAID THE LOAN AGREEMENTS INCLUDE COVENANTS PROHIBITING COMMON STOCK DIVIDENDS AND NEWDEBT LIMITATIONS INCLUDING CAPITAL LEASES 9311180168 931118 INTERNATIONAL BRITISH RETAIL SALES UP LONDON BRITISH RETAIL SALES VOLUME ROSE A PROVISIONAL SEASONALLY ADJUSTED 01 IN OCTOBER FROM SEPTEMBER AND WAS UP 32 FROM A YEAR EARLIER THE CENTRAL STATISTICAL OFFICE SAID IN THE THREE MONTHS ENDED IN OCTOBER RETAIL SALES VOLUME ROSE 09 FROM THE PREVIOUS THREE MONTHS AND 35 FROM A YEAR EARLIER 9311180166 931118 OREGON STEEL UNIT WINS ORDER PORTLAND ORE OREGON STEEL MILLS INC SAID ITS NAPA PIPE CORP SUBSIDIARY WAS AWARDED AN 872 MILLION CONTRACT TO SUPPLY 120000 METRIC TONS OF STEEL PIPE TO THE PETROLEUM AUTHORITY OF THAILAND IN 1992 OREGON STEEL HAD 3977 MILLION IN SALES 9311180165 931118 INTERNATIONAL FOR CHINA THE SEATTLE SUMMIT IS FAILING TO PROVIDE TRADE LEVERAGE AGAINST US BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE CHINA'S BID TO USE THE ASIAPACIFIC ECONOMIC COOPERATION FORUM TO COMPEL THE US TO GRANT IT UNCONDITIONAL MOSTFAVOREDNATION TRADE STATUS HAS APPARENTLY FAILED OFFICIALS HERE SAID DELEGATES ATTENDING WORKINGLEVEL MEETINGS PRIOR TO THE OPENING OF APEC'S ANNUAL MINISTERIAL CONFERENCE YESTERDAY SAID MFN ISN'T MENTIONED IN THEIR FINAL REPORT TO THE GROUP'S FOREIGN AND TRADE MINISTERS AND IT IS UNLIKELY TO BE RAISED DURING THE CONFERENCE THE FINAL DOCUMENT DOESN'T MENTION IT AT ALL SAID A SENIOR AUSTRALIAN DIPLOMAT IT'S NOT A REAL APEC ISSUE BEFORE ARRIVING IN SEATTLE CHINESE OFFICIALS SAID THEY WOULD PROPOSE THAT THE EXTENSION OF UNCONDITIONAL MFN STATUS AMONG APEC'S 15 MEMBERS BE TAKEN AS ONE OF THE ORGANIZATION'S BASIC PRINCIPLES THAT PROPOSAL WAS WIDELY SEEN AS A PLOY TO CIRCUMVENT THE ANNUAL US DEBATE OVER CHINA'S MFN STATUS THAT HAS OVERSHADOWED USCHINA RELATIONS SINCE BEIJING'S BRUTAL CRACKDOWN ON ANTIGOVERNMENT DEMONSTRATORS IN 1989 IN MAY PRESIDENT CLINTON ISSUED AN EXECUTIVE ORDER RENEWING CHINA'S MFN STATUS FOR ANOTHER YEAR ON CONDITION THAT IT MAKE SIGNIFICANT PROGRESS IN HUMAN RIGHTS MR CLINTON AND CHINESE PRESIDENT JIANG ZEMIN ARE SCHEDULED TO MEET IN SEATTLE TOMORROW THE FIRST SUCH HIGHLEVEL MEETING SINCE THE 1989 CRACKDOWN CHINA'S MFN STATUS IS REPORTEDLY AT THE TOP OF MR JIANG'S AGENDA WHILE MR CLINTON WILL DISCUSS HUMAN RIGHTS THE THREAT POSED BY NORTH KOREA'S ALLEGED NUCLEARWEAPONS PROGRAM AND BILATERAL TRADE DISPUTES AT A NEWS CONFERENCE TUESDAY CHARLENE BARSHEFSKY DEPUTY US TRADE REPRESENTATIVE SAID A ROUND OF TRADE TALKS WITH CHINA IN WASHINGTON LAST WEEK WENT WELL BUT SHE RESTATED THE CLINTON ADMINISTRATION'S THREAT TO IMPOSE SANCTIONS ON BEIJING UNLESS IT SIGNS A NEW BILATERAL TEXTILE TRADE AGREEMENT AND LIVES UP TO A SERIES OF AGREEMENTS ON MARKET ACCESS AND PROTECTION OF INTELLECTUALPROPERTY RIGHTS BY A DEC 31 DEADLINE A SENIOR US TRADE OFFICIAL ATTENDING THE MEETINGS HERE SAID BEIJING IS STILL SMARTING FROM ITS REALIZATION THAT WASHINGTON ISN'T OBLIGATED TO GRANT CHINA UNCONDITIONAL MFN STATUS IF IT ACCEDES TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE CHINA HAD BEEN PRESSING HARD TO SIGN ONTO GATT IN THE MISTAKEN BELIEF THAT ALL OTHER SIGNATORIES INCLUDING THE US WOULD THEN HAVE TO GRANT IT SUCH STATUS BUT THE US CITING A GATT RULE FOR NEW SIGNATORIES RESERVES THE RIGHT NOT TO GRANT CHINA THE MINIMUM TARIFFS CHARGED TO VIRTUALLY ALL OTHER COUNTRIES UNCONDITIONALLY BEIJING'S SUBSEQUENT ATTEMPT TO GET APEC TO ADOPT THE PRINCIPLE OF UNCONDITIONAL MFN STATUS APPARENTLY FELL FLAT PROTECTIVE OF ITS TRADITION OF CONSENSUS THE ORGANIZATION TENDS TO SHY AWAY FROM CONFLICTS AMONG INDIVIDUAL MEMBERS OFFICIALS SAID IT'S SEEN AS A BILATERAL ISSUE INJECTING ITSELF INTO A MULTILATERAL FORUM SAID THE AUSTRALIAN OFFICIAL IF THE GROUP TOOK IT UP IT MIGHT BE DISCORDANT ALSO MANY APEC MEMBERS HAVE REPEATEDLY STRESSED THAT ALL OF THE GROUP'S PRINCIPLES AND ACTIVITIES BE CONSISTENT WITH GATT THUS IF BEIJING PRESSED THE ISSUE WASHINGTON COULD EASILY CLAIM THAT EVEN UNDER THE AUSPICES OF APEC IT RETAINS THE RIGHT TO PLACE CONDITIONS ON CHINA'S BILATERAL TRADE STATUS ALTHOUGH THE MINISTERS COULD STILL RAISE THE MFN ISSUE DURING THEIR DISCUSSIONS THIS WEEK MOST OFFICIALS DOUBT THAT THE SUBJECT WILL ARISE SINCE IT ISN'T INCLUDED IN THE WORKING GROUP'S FINAL REPORT THAT DOCUMENT WILL RECOMMEND THAT THE MINISTERS DECIDE ON A VARIETY OF APECRELATED MATTERS FROM NEXT YEAR'S BUDGET TO THE ORGANIZATION'S FUTURE THE REPORT ALSO REPORTEDLY RECOMMENDS THAT THE MINISTERS AWARD A 500000 CONTRACT TO AMERICAN TELEPHONE & TELEGRAPH CO TO PROVIDE EQUIPMENT FOR APECNET A NEW APECWIDE COMPUTER NETWORK THAT WOULD DISTRIBUTE A VARIETY OF DATA AND INFORMATION AMONG MEMBERS 9311180164 931118 CVB TO BUY WESTERN INDUSTRIAL ONTARIO CALIF CVB FINANCIAL CORP SAID IT AGREED TO ACQUIRE WESTERN INDUSTRIAL NATIONAL BANK FOR 135 MILLION PLUS ACCRUED NET INCOME FOR THE PERIOD FROM DEC 31 1992 UNTIL THE ACQUISITION IS COMPLETED THE TRANSACTION IS SUBJECT TO SHAREHOLDER AND REGULATORY APPROVAL CVB SAID IT PLANS TO MERGE WESTERN INDUSTRIAL NATIONAL BANK WHICH HAS TWO BRANCHES IN SOUTH EL MONTE CALIF INTO CVB'S CHINO VALLEY BANK UNIT 9311180163 931118 WHO'S NEWS ROTHSCHILD NORTH AMERICA INC NEW YORK ROTHSCHILD NORTH AMERICA INC NAMED HENDERSON G TUTEN 46 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE APRIL 1 MR TUTEN WAS FORMERLY CEO OF THE GROUP'S AUSTRALIAN MERCHANT BANK AND ALSO HAD JOINT RESPONSIBILITY FOR MANAGING THE COMPANY'S ACTIVITIES IN THE ASIAPACIFIC REGION THE INVESTMENT BANKING CORPORATE FINANCE BROKERAGE AND TRADING ORGANIZATION ALSO SAID MR TUTEN WILL BECOME A DIRECTOR OF THE COMPANY'S ROTHSCHILD INC UNIT AND OF ROTHSCHILD ASSET MANAGEMENT INC THE US ASSETMANAGEMENT ARM OF THE FIRM MR TUTEN SUCCEEDS GERALD GOLDSMITH 50 AS PRESIDENT WHO IS RESIGNING TO PURSUE OTHER INTERESTS 9311180161 931118 CBOT WILL DEVELOP DERIVATIVE PRODUCTS BASED ON REAL ESTATE CHICAGO THE CHICAGO BOARD OF TRADE SAID IT WILL ADD DERIVATIVE PRODUCTS BASED ON US REAL ESTATE TO ITS STABLE OF FUTURES AND OPTIONS CONTRACTS THE CHICAGO EXCHANGE THE WORLD'S BIGGEST FUTURES MARKET SAID IT WOULD TEAM UP WITH CAMBRIDGE MASSBASED CASE SHILLER WEISS INC TO DEVELOP THE NEW FINANCIAL INSTRUMENTS THE FIRM HAS DEVELOPED INDEXES THAT TRACK THE MOVEMENT OF SINGLEFAMILY HOME PRICES IN US CITIES BANKERS FARMERS AND OTHERS USE CONTRACTS AVAILABLE AT THE CBOT AND OTHER US FUTURES EXCHANGES TO OFFSET OR HEDGE THE RISK OF UNFAVORABLE SWINGS IN THE PRICES OF TREASURY BONDS AND OTHER SECURITIES AND COMMODITIES THE CHICAGO EXCHANGE IS PROPOSING THAT MORTGAGE COMPANIES PENSION AND REALESTATE FUNDS AND OTHERS INVOLVED IN THE REALESTATE MARKET USE THE NEW REALESTATE DERIVATIVES SIMILARLY SINGLE FAMILY HOMES ARE CONSIDERED THE LARGEST ASSET CLASS IN THE US FAR OUTDISTANCING THE STOCK OR BOND MARKETS SAID MARK SHLAES A CBOT DIRECTOR DERIVATIVE PRODUCTS ON THESE INDEXES TRADED AT THE CHICAGO BOARD OF TRADE WOULD SERVE THIS IMPORTANT ASSET CLASS WHICH IS CURRENTLY WITHOUT HEDGING VEHICLES THE CBOT NOW TRADES A NUMBER OF UNCONVENTIONAL FUTURES CONTRACTS INCLUDING CONTRACTS BASED ON THE US INSURANCE INDUSTRY 9311180160 931118 POLITICS & POLICY CLINTON TO NOMINATE TIGERT TO HEAD FDIC WASHINGTON PRESIDENT CLINTON ANNOUNCED HIS INTENTION TO NOMINATE RICKI TIGERT TO HEAD THE FEDERAL DEPOSIT INSURANCE CORP THE 48YEAROLD MS TIGERT IS A PARTNER IN THE LAW FIRM OF GIBSON DUNN & CRUTCHER FROM 1985 TO 1992 SHE WAS ASSOCIATE GENERAL COUNSEL FOR INTERNATIONAL BANKING OF THE FEDERAL RESERVE'S BOARD OF GOVERNORS RESPONSIBLE FOR DEVELOPMENT AND IMPLEMENTATION OF BANKING LEGISLATION REGULATORY OVERHAUL INTERNATIONAL LOAN RESTRUCTURINGS MULTILATERAL FINANCINGS AND BANKINGREFORM ISSUES PREVIOUSLY SHE HELD COUNSEL POSITIONS AT THE TREASURY DEPARTMENT AND THE SENATE JUDICIARY COMMITTEE THE NOMINATION OF MS TIGERT WHICH HAS BEEN EXPECTED WILL REQUIRE SENATE CONFIRMATION THE FDIC HASN'T HAD A PERMANENT CHAIRMAN SINCE THE DEATH OF WILLIAM TAYLOR IN AUGUST 1992 ANDREW HOVE IS THE ACTING CHAIRMAN 9311180159 931118 EKOSTAHL RESTRUCTURING ADVANCES BRUSSELS THE EUROPEAN COMMUNITY COMMISSION SAID IT HAD AS EXPECTED CLEARED AN 813 MILLION MARK 477 MILLION PLAN TO RESTRUCTURE EASTERN GERMAN STEELMAKER EKOSTAHL AG THE DECISION REVERSES THE COMMISSION'S REJECTION LAST WEEK OF AN 883 MILLION MARK PLAN FROM THE GERMAN GOVERNMENT ON THE GROUNDS IT WOULD CREATE TOO MUCH NEW STEEL PRODUCTION CAPACITY IN THE REGION EC INDUSTRY MINISTERS WERE EXPECTED TO DECIDE TODAY WHETHER TO APPROVE THE EKOSTAHL RESTRUCTURING AS PART OF A COMMUNITYWIDE INDUSTRY REORGANIZATION 9311180158 931118 FOOD SOFT DRINK SALES SPARKLE AT FOUNTAIN OUTLETS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHILE SOFT DRINK SALES AT SUPERMARKETS FIZZLE AN UNEXPECTED PART OF THE BEVERAGE INDUSTRY IS BOOMING DRINKS ON TAP COCACOLA CO'S SODAFOUNTAIN SALES ROSE 11 IN THE LATEST QUARTER DR PEPPER/SEVENUP COS HAD A SIMILAR GAIN AND PEPSICO INC'S FOUNTAIN SALES INCREASED ABOUT 6 MEANWHILE THE INDUSTRY'S BOTTLE AND CAN SALES ARE GROWING AT 15 OR LESS A YEAR SAYS BEVERAGE DIGEST A TRADE PUBLICATION IN GENERAL PEOPLE ARE BUYING MORE SOFT DRINKS WITH THEIR RESTAURANT MEALS THAN AT ANY TIME IN THE LAST FIVE YEARS ACCORDING TO NPD GROUP A CONSUMER RESEARCH FIRM IN PARK RIDGE ILL THAT'S A BIG COUP CONSIDERING THAT NPD STUDIES SHOW MORE RESTAURANT MEALS ARE BEING EATEN OUTSIDE OF RESTAURANTS BUT RESTAURANTS AREN'T THE ONLY FOUNTAIN OUTLETS THAT ARE SELLING MORE DRINKS EVERYBODY IS TRYING TO INCREASE THE NUMBER OF OUNCES THEY CAN POUR SAYS GILBERT CASSAGNE A DR PEPPER/SEVENUP VICE PRESIDENT EVERYONE WINS THE CONSUMERS GET GREATER VALUE OPERATORS SELL MORE OUNCES AND THE INDUSTRY SELLS MORE SYRUP IT ISN'T THAT CONSUMERS HAVE SUDDENLY BECOME NOSTALGIC FOR SODA FOUNTAINS THE GROWTH REFLECTS A HUGE MARKETING AND PROMOTIONAL PUSH BY SOFT DRINK MAKERS WHICH FACE SHELFSPACE LIMITATIONS DISCOUNTING AND GROWING COMPETITION FROM PRIVATE LABELS AND ALTERNATIVE DRINKS IN TRADITIONAL GROCERY CHANNELS IN FOUNTAIN OUTLETS FASTFOOD CHAINS CONVENIENCE STORES AND THEATERS RELATIONSHIPS STILL COUNT SO THE BEVERAGE GIANTS ARE SHARING THEIR RESEARCH WITH THEIR FAST FOOD CLIENTS THEY'RE PUSHING THEIR MARKETING IDEAS LIKE DISPENSING COKE AND PEPSI IN EVER LARGER CUPS AND HELPING TO SUPPLY EVERYTHING FROM ADVERTISING SUPPORT TO MEETING ROOMS AND THEY'RE MAKING THEIR TOP EXECUTIVES AVAILABLE FOR CONSULTATIONS I TALK TO SERGIO ZYMAN COKE'S TOP MARKETER FAIRLY REGULARLY SAYS RAYMOND LEWIS EXECUTIVE VICE PRESIDENT OF MARKETING AT HOLIDAY INN WORLDWIDE IT'S ALWAYS NICE TO PICK UP THE PHONE AND HAVE INPUT FROM SOMEBODY WHO HAS ALREADY SOLVED THE PROBLEM WE'RE SEEKING TO SOLVE BEVERAGE COMPANIES CAN'T TAKE ALL THE CREDIT FOR THE GROWTH FOUNTAIN DRINKS WHICH ACCOUNT FOR A QUARTER OF SOFTDRINK INDUSTRY SALES ARE GETTING A BIG PUSH FROM THE SOCALLED COMBO MEALS THAT HAVE BEEN THE RAGE IN FAST FOOD THE BEVERAGE APPEARS FREE WHEN BURGERS FRIES AND COKE ARE ALL BUNDLED TOGETHER SAYS RON VILORD SENIOR VICE PRESIDENT OF HUMAN RESOURCES AND PURCHASING AT MORRISON RESTAURANTS INC AT MCDONALD'S CORP RESTAURANTS FOUR OUT OF 10 CUSTOMERS BUY A COMBINATION MEAL TWICE AS MANY AS TWO YEARS AGO BUT THE SOFT DRINK GIANTS ARE DOING ALL THEY CAN TO HELP THE TREND MOST BIG COKE CUSTOMERS SAY THE BEVERAGE MAKER PROVIDES A FEW PERCENTAGE POINTS OF THEIR MARKETING BUDGETS COKE WHICH HAS ROUGHLY 70 OF THE SODA FOUNTAIN MARKET ALSO HELPS DEVELOP INSTORE SIGNS AND ADVERTISING THIS CHRISTMAS SEASON COKE WILL EVEN LEND SNIPPETS OF ITS OWN ADVERTISING CAMPAIGN TO HARDEE'S AND ROY ROGERS RESTAURANTS IT MAKES AN IMPACT IF WE RIDE THEIR COATTAILS SAYS JERRY GRAMAGLIA HARDEE'S EXECUTIVE VICE PRESIDENT OF MARKETING PEPSI WITH ROUGHLY 22 OF THE MARKET ACCORDING TO BEVERAGE DIGEST AND DR PEPPER/SEVENUP WITH AN ESTIMATED 9 SHARE ALSO HELP DESIGN FLASHY RESTAURANT MENU BOARDS MARKETING PROGRAMS TO REWARD FREQUENT CUSTOMERS WITH FREE FOOD AND STOREFRONT BANNERS THE BEVERAGE COMPANIES OFTEN SHARE THEIR MARKETING EXPERTISE FOR THE LAST DECADE THE SOFT DRINK INDUSTRY HAS FOUND IT CAN SELL MORE SODA BY INCREASING BOTTLE SIZES IT HAS PLANTED THAT NOTION WITH FASTFOOD CHAINS WHICH ARE NOW SELLING COKE AND PEPSI IN BIGGER TUMBLERS AFTER WENDY'S TOOK COKE'S SUGGESTION TO INCREASE THE MEDIUM DRINK IN ITS COMBO MEALS TO 20 OUNCES FROM 16 OUNCES SOFT DRINK SALES ROSE AT LEAST 10 ACCORDING TO GORDON TETER WENDY'S PRESIDENT NOW WENDY'S IS URGING CUSTOMERS TO PURCHASE A 32OUNCE BIGGIE DRINK FOR EIGHT TO 10 CENTS MORE LAST YEAR SUBWAY CAME OUT WITH A 44OUNCE DRINK BURGER KING AND MCDONALD'S ARE ALSO TESTING THAT SIZE SEVENELEVEN STORES INTRODUCED THE 64OUNCE DOUBLE GULP THIS SUMMER THE BEVERAGE MAKERS ALSO BEND OVER BACKWARD TO BE ACCESSIBLE TO THEIR CUSTOMERS DOUGLAS IVESTER THE HEAD OF COKE'S US BUSINESS MAKES HIMSELF PERSONALLY AVAILABLE DINING IN MIAMI WITH BURGER KING EXECUTIVES ATTENDING WENDY'S ADVERTISING MEETINGS AND SPEAKING TO A HARDEE'S FRANCHISEE MEETING HELD AT COKE HEADQUARTERS ABOUT CUSTOMER RELATIONS COKE'S LAWYERS ADVISE HOLIDAY INN'S LEGAL STAFF ON INTERNATIONAL TRADE LAWS AND PEPSI DISCUSSED CRISIS MANAGEMENT PROGRAMS WITH RESTAURANT CUSTOMERS AFTER IT DEALT WITH FALSE CLAIMS OF SYRINGES IN ITS CANS LAST SUMMER WHEN CIRCLE K CORP WANTED TO ADD FRESHLY COOKED HOT DOGS AND SANDWICHES TO ITS CONVENIENCESTORE OFFERINGS COKE MARKETERS SPENT SEVERAL DAYS WITH COMPANY OFFICIALS DISCUSSING HOW TO BUILD SALES AFTER DAVID HURWITT SIGNED ON AS SENIOR VICE PRESIDENT RESTAURANT MARKETING AT FLAGSTAR COS IN SPARTANBURG SC HE FLEW DOWN TO COKE HEADQUARTERS FOR LUNCH WITH MR IVESTER DINNER WITH THE HEAD OF COKE'S MARKETING DEPARTMENT AND A DISCUSSION WITH DONALD KEOUGH WHO WAS PRESIDENT AT THE TIME THE BEVERAGE BEHEMOTHS CAN ALSO BE VALUABLE FOR THEIR CONNECTIONS COKE SET UP DENNY'S SPECIAL BASEBALL CARD PROMOTION WITH MAJOR LEAGUE BASEBALL AND INTRODUCED AMC ENTERTAINMENT INC THEATER EXECUTIVES TO SEVERAL PROFESSIONAL FOOTBALL TEAMS FOR A HALLOWEEN PROMOTION WHEN SUBWAY SANDWICH WRAPPERS AND CUPS LITTERED SCENES IN TERMINATOR 2 THE RESTAURANT COMPANY HAD PEPSI TO THANK ENTERTAINMENT SPECIALISTS AT THE SOFT DRINK COMPANY HAD INTRODUCED SUBWAY TO THE MOVIE MAKERS BURGER KING MARKETERS MET DISNEY EXECUTIVES THROUGH COKE A FEW YEARS AGO ONE RESULT CAN BE SEEN AT THE CHAIN NOW A 199 WATCH WITH GRAPHICS FROM DISNEY'S THE NIGHTMARE BEFORE CHRISTMAS I VIEW COKE AS PART OF OUR MARKETING TEAM THEY ARE SO ENMESHED IN OUR BUSINESS SAYS SIDNEY FELTENSTEIN EXECUTIVE VICE PRESIDENT WORLDWIDE MARKETING AT BURGER KING IT'S DIFFICULT TO TELL WHOSE IDEA IS WHOSE 9311180157 931118 BANKING BANKS' SERVICES GROW COSTLIER FOR CONSUMERS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEES FOR PERSONAL FINANCIAL SERVICES HAVE BEEN RISING ALMOST AS FAST AS THE COST OF MEDICAL CARE SINCE 1990 THE COST OF CHECKING ACCOUNTS OTHER BANK SERVICES TAXRETURN PREPARATION AND PERSONAL ACCOUNTING HAS CLIMBED 18 COMPARED WITH A 21 INCREASE IN THE PRICE OF MEDICAL CARE ACCORDING TO THE CONSUMER PRICE INDEX WHILE CREATIVE BANKERS ARE PAYING YOU LESS AND LESS ON YOUR SAVINGS THEY'RE ALSO INVENTING NEW WAYS TO TACK ON FEES AND CHARGES COMPLAINS ROBERT HEADY PUBLISHER OF THE BANK RATE MONITOR IN NORTH PALM BEACH FLA OFTEN CONSUMERS FEEL HELPLESS TO DO ANYTHING BUT PAY THE FEES FEE INCREASES HAVE REACHED THE POINT WHERE CONSUMERS ARE SULLEN BUT NOT REBELLIOUS SAYS EDWARD FURASH WHO HEADS THE WASHINGTON BANK CONSULTING FIRM FURASH & CO BUT SOMETIMES CUSTOMERS SEEKING MONEY ORDERS TRAVELER'S CHECKS OR FOREIGN CURRENCY CAN PROFIT FROM A LITTLE SHOPPING AROUND FOR EXAMPLE SOME NATIONSBANK OFFICES CHARGE 5 FOR A MONEY ORDER BUT ANY POST OFFICE WILL SELL A MONEY ORDER FOR 75 CENTS WESTERN UNION OFFICES ALSO SELL MONEY ORDERS FOR 75 CENTS AND MANY 7ELEVEN STORES SELL THEM FOR 109 BANK OF AMERICA CHARGES ITS CUSTOMERS 20 TO GET A CHECK DRAWN IN A FOREIGN CURRENCY AND THE FEE IS 35 FOR PEOPLE WITHOUT ACCOUNTS AT THE BANKAMERICA CORP UNIT MEANWHILE THOMAS COOK INC THE INTERNATIONAL TRAVEL AND FINANCIAL FIRM GENERALLY CHARGES 7 FOR THE SAME SERVICE CITIBANK UNITS CHARGE 15 TO CASH A CHECK WRITTEN IN A FOREIGN CURRENCY RUESCH INTERNATIONAL INC A FOREIGNEXCHANGE SERVICE WITH OFFICES IN MAJOR CITIES CHARGES 2 AND THOMAS COOK CHARGES 3 WHILE SOME BANKS CHARGE A FEE OF 15 FOR TRAVELER'S CHECKS AMERICAN EXPRESS CO AND THOMAS COOK CHARGE 1 ALTHOUGH IT CLEARLY PAYS TO SHOP AROUND FOR CASHTRANSFER AND FOREIGNCURRENCY SERVICES THAT FALL OUTSIDE NORMAL CHECKINGACCOUNT ACTIVITY FEW CUSTOMERS DO JANICE SMITH AN ACCOUNTING PROFESSOR AT BLOOMSBURG UNIVERSITY IN BLOOMSBURG PA CONTENDS THAT'S BECAUSE OF INERTIA IT'S SURPRISING HOW MANY PEOPLE CONSIDER THE FEES A GIVEN AND DON'T LOOK FOR ALTERNATIVES SHE SAYS THERE ARE THREE TYPES OF INSTRUMENTS USED TO GUARANTEE PAYMENT MONEY ORDERS CASHIER'S CHECK AND CERTIFIED CHECKS LAST YEAR 36 OF THE BANKS SURVEYED BY SHESHUNOFF INFORMATION SERVICES INC IN AUSTIN TEXAS BOOSTED FEES FOR MONEY ORDERS AND 83 OF THOSE BANKS SAW NO CHANGE IN MONEYORDER VOLUME THE AVERAGE FEE FOR A MONEY ORDER IS 175 AND INDIVIDUAL BANKS CHARGE ANYWHERE FROM 10 TO NO FEE AT ALL SHESHUNOFF REPORTS FEES FOR CASHIER'S CHECKS WHICH BANKS ISSUE AGAINST THEIR OWN ACCOUNTS RANGE FROM 10 TO NO CHARGE WITH A NATIONWIDE AVERAGE OF 269 LAST YEAR 38 OF THE BANKS RAISED CHARGES FOR CASHIER'S CHECKS AND 86 REPORTED NO CHANGE IN VOLUME CERTIFIED CHECKS WHICH HAVE THE BANK'S CERTIFICATION THAT IT HAS EARMARKED MONEY IN THE DEPOSITOR'S ACCOUNT FOR PAYMENT COST BETWEEN 25 AND NO CHARGE WITH AN AVERAGE FEE OF 570 ACCORDING TO SHESHUNOFF NEARLY 20 OF THE BANKS SURVEYED BOOSTED FEES FOR CERTIFIED CHECKS LAST YEAR 93 REPORTED NO CHANGE IN VOLUME BANKS GENERALLY SAY THEY SET FEES HIGH ENOUGH TO COVER THE COSTS OF RELATIVELY INFREQUENT AND LABORINTENSIVE SPECIAL SERVICES AND SOME MAY BE DELIBERATELY SETTING FEES SO HIGH CUSTOMERS WILL BE DISCOURAGED FROM COMING IN THE CASE OF MONEY ORDERS WE DECIDED YEARS AGO THAT WE'RE NOT IN THE MONEYORDER BUSINESS SAYS SUSAN WEEKS OF CITICORP WE'LL DO IT BUT IT'S NOT OUR CORE BUSINESS CITIBANK BRANCHES IN NEW YORK CHARGE 5 FOR MONEY ORDERS THE FEDERAL RESERVE BANK OF NEW YORK REPORTS THAT IT COSTS THE AVERAGE BANK WITH MORE THAN 200 MILLION IN ASSETS ABOUT 80 CENTS TO WRITE A MONEY ORDER LAST YEAR THE POSTAL SERVICE TOOK IN 1913 MILLION FROM THE SALE OF 255 MILLION DOMESTIC MONEY ORDERS BUT THE 75 CENT FEE JUST COVERS THE COST OF PROVIDING THE SERVICE MOST BANK DEPOSITORS MAKE PAYMENTS BY CHECK UNLESS THEY ARE DEALING WITH TRUCKING COMPANIES OR OTHER BUSINESSES THAT HAVEN'T YET JOINED THE MODERN CHECK AND CREDITCARD WORLD SOME BANKS ADMIT THAT THEY CAN'T COMPETE WITH LOWER PRICES OFFERED BY MORE SPECIALIZED SERVICES THE VICTORIA BANK & TRUST CO IN VICTORIA TEXAS CHARGES 11 TO BUY AND 15 TO SELL FOREIGN CURRENCY LINDA ANDERSON A BANK OFFICER SAYS USUALLY THE TELLERS WILL TELL CUSTOMERS THAT THEY COULD DO IT CHEAPER AT A MAJOR AIRPORT 9311180156 931118 NEW JERSEY REGULATORS REJECT SPORTS BETTING CASINOS PLAN TO APPEAL TRENTON NJ NEW JERSEY GAMING REGULATORS REJECTED A BID TO LEGALIZE SPORTS BETTING IN THE STATE BUT CASINO OFFICIALS VOWED TO APPEAL THE RULING AND ASK STATE LAWMAKERS TO APPROVE SPORTS GAMBLING BEFORE A FEDERAL BAN BEGINS JAN 1 WE'RE LEAVING ALL OPTIONS OPEN SAID NICHOLAS RIBIS CHAIRMAN OF THE CASINO ASSOCIATION OF NEW JERSEY AND CHIEF EXECUTIVE OF THE TRUMP ORGANIZATION FEDERAL LEGISLATION LAST YEAR BANNED SPORTS GAMBLING IN MOST STATES BUT NEW JERSEY WAS GIVEN UNTIL JANUARY 1994 TO APPROVE SPORTS BETTING AFTER FAILING TWICE TO WIN APPROVAL FROM THE STATE ASSEMBLY CASINO OWNERS ASKED THE NEW JERSEY CASINO CONTROL COMMISSION TO PERMIT BETTING ON PROFESSIONAL AND COLLEGIATE SPORTS EXCEPT FOR NEW JERSEY COLLEGIATE EVENTS FOR A SIXMONTH TRIAL PERIOD CASINO INTERESTS ARGUE THAT AN ESTIMATED 200 MILLION TO 400 MILLION A YEAR IN REVENUE FROM SPORTS BETTING AND RELATED GAMING WILL KEEP THEM COMPETITIVE AS GAMBLING GROWS IN NEARBY STATES WHERE CASINOS HAVE BEEN LICENSED ON INDIAN RESERVATIONS MR RIBIS ESTIMATES NEW JERSEY COULD REAP AT LEAST 20 MILLION A YEAR IN TAXES FROM THE WAGERING THE REGULATORS YESTERDAY REJECTED THE BID BY A 41 VOTE RULING THAT THE STATE LEGISLATURE DIDN'T GIVE THEM THE AUTHORITY TO PERMIT SPORTS BETTING MR RIBIS SAID CASINO OWNERS WILL ASK A STATE APPELLATE COURT TO SEND THE DECISION BACK TO THE CASINO COMMISSION FOR A NEW HEARING THE INDUSTRY FACES AN UPHILL BATTLE TO WIN APPROVAL FROM THE STATE'S LAWMAKERS IN THE FEW DAYS REMAINING IN THE SESSION SAID CHUCK LEITGEB A SPOKESMAN FOR THE ASSEMBLY'S REPUBLICAN MAJORITY EARLIER THIS YEAR A MOVE TO LEGALIZE SPORTS BETTING WAS SOUNDLY DEFEATED IN AN ASSEMBLY COMMITTEE HE NOTED I'D SAY THE FUTURE OF SPORTS BETTING IN THE HOUSE IS NOT A VERY BRIGHT ONE AT THIS POINT HE SAID 9311180155 931118 INTERNATIONAL SWEDEN'S ELECTROLUX SAYS PRETAX PROFIT ROSE 31 FOR NINE MONTHS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM ELECTROLUX AB THE SWEDISH APPLIANCE MAKER SAID PRETAX PROFIT AFTER FINANCIAL ITEMS FOR THE NINE MONTHS ENDED IN SEPTEMBER ROSE 31 TO 961 MILLION KRONOR 1166 MILLION FROM 736 MILLION KRONOR BUT THE IMPROVEMENT STEMMED FROM EXCHANGERATE GAINS AND IMPROVED PERFORMANCE IN OUTDOOR AND INDUSTRIAL PRODUCTS OPERATIONS RATHER THAN FROM THE COMPANY'S CORE CONSUMER APPLIANCE BUSINESS STILL THE INTERIM REPORT EXCEEDED ANALYSTS' FORECASTS OF AROUND 880 MILLION KRONOR ELECTROLUX B SHARES RALLIED CLOSING AT 305 KRONOR 37 UP 18 KRONOR LIKE OTHER SWEDISH EXPORTERS ELECTROLUX BENEFITED FROM THE DEPRECIATION OF THE KRONA OF ROUGHLY 30 AGAINST THE US DOLLAR SINCE IT WAS DECOUPLED FROM ITS LINK TO THE EUROPEAN CURRENCY UNIT LAST NOVEMBER THE US DOLLAR IS OF KEY IMPORTANCE BECAUSE OF THE GROUP'S HIGH EXPOSURE TO THE NORTH AMERICAN MARKET SALES JUMPED 26 TO 7425 BILLION KRONOR 901 BILLION FROM 5895 BILLION KRONOR WITH ALL BUSINESS AREAS SHOWING DOUBLEDIGIT SALES JUMPS BUT ADJUSTED FOR EXCHANGERATE EFFECTS THE INCREASE WAS JUST 4 REFLECTING SLACK DEMAND NORTH AMERICAN OPERATIONS SHOWED HEALTHY VOLUME GROWTH BUT THAT WAS ERODED BY MARKETING COSTS FOR NEW LAUNCHES REPLACEMENT OF A FAULTY COMPONENT IN SOME DISHWASHERS AND TRANSFERS OF PRODUCTION BETWEEN THE US AND CANADA ELECTROLUX DIDN'T GIVE A FULLYEAR FORECAST BUT INDICATED IN ITS REPORT THAT IMPROVEMENT IS UNDER WAY 9311180154 931118 LAW INSIDERTRADING CASE RESULTS IN JUDGMENT TOTALING 16 MILLION WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION WON A 16 MILLION JUDGMENT AGAINST AN INDIANAPOLIS BUSINESSMAN IN AN INSIDERTRADING CASE BASED ENTIRELY ON CIRCUMSTANTIAL EVIDENCE SEC TRIAL LAWYER DANIEL SHEA SAID HE USED RECORDS OF TELEPHONE CALLS AND STOCK TRANSACTIONS TO CONVINCE US DISTRICT JUDGE LARRY MCKINNEY OF INDIANAPOLIS THAT BUSINESSMAN MICHAEL MAIO AND RELATIVES AND FRIENDS TRADED ON INSIDE INFORMATION ABOUT AN IMPENDING MERGER THE QUESTIONABLE TRADES OCCURRED IMMEDIATELY BEFORE THE 1988 ACQUISITION OF XIDEX CORP BY ANACOMP INC A MICROGRAPHICS COMPANY WITH OFFICES IN INDIANAPOLIS AND ATLANTA ITS CHAIRMAN LOUIS FERRERO SETTLED CIVIL CHARGES WITH THE SEC IN 1991 WITHOUT ADMITTING OR DENYING THAT HE TOLD MR MAIO OF THE MERGER JUDGE MCKINNEY RULED THAT MR FERRERO TOLD MR MAIO OF THE PLANS AND FOUND THAT MR MAIO AND A GROUP OF INLAWS COLLECTED 801946 IN ILLEGAL PROFIT FROM TRADING IN THE COMPANIES' STOCK THE JUDGE ORDERED MR MAIO TO GIVE UP HIS PROFIT AND THAT OF CERTAIN INLAWS WHO WEREN'T CHARGED AND TO PAY A PENALTY OF 838875 A FIGURE THAT REPRESENTS THREE TIMES MR MAIO'S PERSONAL PROFIT MR MAIO'S LAWYER DAVID MERNITZ OF INDIANAPOLIS REFUSED THROUGH A SPOKESWOMAN TO COMMENT ON THE CASE JUDGE MCKINNEY ALSO RULED THAT TWO OTHER INDIVIDUALS DARRIN DUNCAN AND PATRICIA CHANDLER ALSO PROFITED FROM INSIDER INFORMATION MR DUNCAN WHO IS MR MAIO'S SONINLAW WAS ORDERED TO GIVE UP 16562 IN PROFIT AND MS CHANDLER A FORMER STOCKBROKER WAS ORDERED TO PAY 94500 MS CHANDLER'S LAWYER RONALD ELBERGER SAID HE AND HIS CLIENT HAVEN'T DECIDED WHETHER TO CHALLENGE THE JUDGMENT MR DUNCAN'S LAWYER WAS IN COURT AND UNAVAILABLE TO COMMENT 9311180153 931118 WHO'S NEWS ARROW AUTOMOTIVE INDUSTRIES INC ARROW AUTOMOTIVE INDUSTRIES INC FRAMINGHAM MASS WINTHROP P ROCKEFELLER 44 YEARS OLD WAS NAMED A DIRECTOR OF THIS MAKER OF REPLACEMENT PARTS FOR CARS AND TRUCKS HE SUCCEEDS JOSEPH L BOWER 55 WHO RETIRED AFTER SERVING AS A DIRECTOR FOR 20 YEARS MR ROCKEFELLER IS CHAIRMAN AND CHIEF EXECUTIVE OF WINROCK FARMS INC A LIVESTOCK CONCERN BASED IN MORRILTON ARK ARROW'S BOARD HAS NINE MEMBERS 9311180152 931118 WEDNESDAY'S MARKETS STOCKS BONDS FINISH LOWER DOLLAR IS MIXED BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCKS SLUMPED UNDER THE WEIGHT OF STEADILY DECLINING BOND PRICES THE DOLLAR ENDED MIXED RETREATING FROM ITS RECORD SET TUESDAY THE DOW JONES INDUSTRIAL AVERAGE EASED 642 POINTS TO 370435 STANDARD & POOR'S 500STOCK INDEX SLID 193 TO 46481 AND THE NASDAQ COMPOSITE INDEX FELL 933 TO 76236 THE DECLINES CAME AS INVESTORS BRACED FOR LAST NIGHT'S HOUSE VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT ON TUESDAY BELIEF THAT THE ACCORD WOULD PASS SENT THE INDUSTRIAL AVERAGE ABOVE THE 3700 MARK FOR THE FIRST TIME EVER THOUGH THE INDUSTRIAL AVERAGE CLIMBED YESTERDAY MORNING A DROP IN BOND PRICES DURING THE AFTERNOON TRIGGERED SELLING WILLIAM DODGE STOCK STRATEGIST AT DEAN WITTER REYNOLDS SAID THAT REPORTS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS CONSIDERING PRODUCTION CUTBACKS SENT OIL PRICES SOARING WHICH IN TURN HURT BONDS ADDING TO THE WORRIES IN THE FIXEDINCOME MARKETS WAS A REPORT THAT LIBYA IS READY TO TORCH THE COUNTRY'S OIL WELLS TO PROTEST TOUGHER UNITED NATIONS SANCTIONS AGAINST IT THE ONE THING THAT NO ONE HAS BUILT INTO THEIR FORECAST IS A DISRUPTION OF OIL SUPPLIES SAID MR DODGE AND EVEN THOUGH IT'S AN EXTRAORDINARILY LOW PROBABILITY NOBODY WANTS TO HEAR IT SEPARATELY IN A MOVE THAT MONEY MANAGERS SAY COULD SEND SHIVERS THROUGH THE HONG KONG STOCK MARKET MORGAN STANLEY'S CHIEF STRATEGIST BARTON BIGGS REDUCED THE WEIGHTING OF THE HONG KONG MARKET IN HIS EMERGINGMARKETS PORTFOLIO TO 10 FROM 16 YESTERDAY THE HONG KONG STOCK MARKET FELL 18 PEOPLE FAMILIAR WITH MR BIGGS'S THINKING SAID HE HAD CONCLUDED THAT THE MARKET HAD RISEN TOO FAR TOO FAST BUT THAT HE REMAINED A LONGTERM CHINA BULL WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 030 TO 11105 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 3169 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1311 ISSUES FELL AND 780 ROSE BOND PRICES SLID THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN 1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 617 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17030 MARKS AND 10685 YEN COMPARED WITH 17047 MARKS AND 10677 YEN TUESDAY 9311180151 931118 WHO'S NEWS ALLIED PRODUCTS CORP ALLIED PRODUCTS CORP CHICAGO PATRICK J RILEY TREASURER WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT OF THIS MAKER OF AGRICULTURAL IMPLEMENTS AND INDUSTRIAL PRODUCTS 9311180149 931118 WHAT'S NEWS BUSINESS AND FINANCE THE HOUSE CLEARED THE NORTH AMERICAN FREE TRADE AGREEMENT BY A 234200 VOTE THE SURPRISINGLY COMFORTABLE VICTORY WAS CRITICAL FOR CLINTON WHOSE ECONOMIC LEADERSHIP HUNG IN THE BALANCE BOTH AT HOME AND ABROAD BUOYED BY THE WIN CLINTON TODAY WILL TRAVEL TO SEATTLE TO MEET WITH ASIAN LEADERS AND SOON WILL BEGIN TO PUSH FOR COMPLETION OF THE SWEEPING GLOBALTRADE PACT BEING THRASHED OUT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE SENATE COULD TAKE UP NAFTA AS EARLY AS TOMORROW THE CASE INVOLVING GENERAL MOTORS' PICKUPS IS BEING REVIEWED BY TRANSPORTATION SECRETARY FEDERICO PENA A HIGHLY UNUSUAL MOVE THAT SUGGESTS THE GOVERNMENT MAY BACK AWAY FROM ITS EARLIER REQUEST FOR A RECALL FORD IS TRYING TO SELL ITS STRUGGLING FIRST NATIONWIDE FINANCIAL UNIT AFTER SPENDING 493 MILLION TO ACQUIRE THE THRIFT IN 1985 AND PUMPING IN AN ADDITIONAL 12 BILLION TO SHORE IT UP METROPOLITAN LIFE FACES MORE SCRUTINY AS TEXAS BROADENED ITS INQUIRY INTO SALES PRACTICES BY LOOKING INTO THE ACTIONS OF MET AGENTS IN HOUSTON DALLAS AND OTHER TEXAS CITIES HOUSING STARTS ROSE IN OCTOBER FOR THE THIRD MONTH IN A ROW CLIMBING 27 TO THE HIGHEST LEVEL SINCE FEBRUARY 1990 THE INCREASE WAS DRIVEN LARGELY BY CONSTRUCTION POSTPONED BY FLOODING IN THE MIDWEST REGION DONNA KARAN SUSPENDED ITS INITIAL PUBLIC OFFERING APPARENTLY REFLECTING INTERNAL STRIFE WITH LONGTIME FINANCIAL PARTNERS AS WELL AS SLUGGISH DEMAND FOR THE DESIGNER'S FASHIONS AT RETAIL THE FED SAID IT WILL RELEASE EDITED TRANSCRIPTS OF PAST MONETARYPOLICY DISCUSSIONS AFTER A FIVEYEAR DELAY BUT HASN'T DECIDED WHETHER TO DO THE SAME FOR FUTURE MEETINGS THE MOVE UNDER PRESSURE FROM CONGRESS FOLLOWS REVELATIONS THAT THE FED KEPT TRANSCRIPTS OF SUCH DELIBERATIONS FOR 17 YEARS BOEING WON A 25 BILLION ORDER FOR 63 PLANES FROM SOUTHWEST AIR ALLOWING THE MANUFACTURER TO GO AHEAD WITH ITS NEW 737X LINE OF SMALL AIRLINERS THE ORDER WAS LARGER THAN THE THRIVING AIRLINE HAD BEEN EXPECTED TO MAKE QVC NETWORK IS CONSIDERING IMPROVING TERMS OF ITS OFFER FOR PARAMOUNT IN AN EFFORT TO DISSUADE SHAREHOLDERS FROM QUICKLY TENDERING STOCK TO RIVAL BIDDER VIACOM IF A DELAWARE COURT REMOVES OBSTACLES TO ITS BID BLACKSTONE GROUP PLANS TO HIRE 1980S MERGERS STAR J TOMILSON HILL AS A SENIOR INVESTMENT BANKER THE FCC TOLD TELECOMMUNICATIONS TO EXPLAIN AN INTERNAL MEMO THAT URGES LOCAL OPERATORS TO RAISE CABLETV RATES AND BLAME IT ON GOVERNMENT STOCK PRICES SLUMPED UNDER THE WEIGHT OF RISING INTEREST RATES THE DOW JONES INDUSTRIAL AVERAGE EASED 642 POINTS FROM ITS RECORD TO 370435 THE INCOMETAX CUTS THAT JAPAN IS CONSIDERING WILL BOOST DEMAND FOR IMPORTS BUT THEY PROBABLY WON'T BE DEEP ENOUGH TO RETURN JAPAN'S ECONOMY TO THE FAST TRACK SOME ECONOMISTS SAID BONDS LEHMAN BROTHERS TREASURY INDEX 555198 UP 555 COMMODITIES OIL 1704 A BARREL UP 27 CENTS DOW JONES FUTURES INDEX 13375 OFF 038 SPOT INDEX 12218 OFF 027 DOLLAR 10685 YEN UP 008 17030 MARKS OFF 00017 9311180148 931118 ECONOMY FEDERAL RESERVE TO RELEASE TRANSCRIPTS OF PAST SESSIONS AFTER FIVEYEAR DELAY BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE UNDER PRESSURE FROM CONGRESS SAID IT WILL RELEASE EDITED TRANSCRIPTS OF PAST MONETARYPOLICY DISCUSSIONS AFTER A FIVEYEAR DELAY BUT HASN'T DECIDED WHETHER TO DO THE SAME FOR FUTURE MEETINGS THE ACTION IS THE LATEST FALLOUT FROM THE RECENT REVELATION THAT THE FED UNBEKNOWN TO MANY OF ITS TOP OFFICIALS HAS BEEN KEEPING VERBATIM TRANSCRIPTS OF ITS MONETARYPOLICY DELIBERATIONS FOR 17 YEARS THE DISPUTE IS TURNING INTO A POLITICAL EMBARRASSMENT FOR THE FED AND COULD HAVE LONGLASTING EFFECTS THE CONTROVERSY PROBABLY WILL FORCE THE FED TO DISCLOSE MORE IN THE FUTURE ABOUT CLOSEDDOOR MEETINGS OF THE FEDERAL OPEN MARKET COMMITTEE WHICH MAKES INTERESTRATE POLICY AND BY FUELING CONGRESSIONAL CRITICS OF THE FED IT COULD LEAD TO THE FIRST SIGNIFICANT LEGISLATIVE CHANGES IN THE CENTRAL BANK'S STRUCTURE IN DECADES FED CHAIRMAN ALAN GREENSPAN SAW THIS COMING ACCORDING TO THE EXTRAORDINARY NOTES OF AN HOURLONG OCT 15 CONFERENCE CALL AMONG FED OFFICIALS AG ALAN GREENSPAN NOT AS CONFIDENT AS PREVIOUSLY THAT FED IS NOT AT RISK AN OFFICIAL OF THE CLEVELAND FEDERAL RESERVE BANK RECORDED FED VULNERABLE IF MISHANDLE TRANSCRIPTS MATTER THE NOTES WERE OBTAINED AND RELEASED BY THE HOUSE BANKING COMMITTEE WHICH HAS DEMANDED UNEDITED COPIES OF THE TRANSCRIPTS AS WELL AS THE PUBLIC RELEASE OF EDITED TRANSCRIPTS OLDER THAN THREE YEARS IN A LETTER SENT YESTERDAY TO THE HOUSE BANKING COMMITTEE MR GREENSPAN SAID FED BOARD MEMBERS AND REGIONALBANK PRESIDENTS WHO CONSTITUTE THE OPEN MARKET COMMITTEE DECIDED AT THEIR MEETING ON TUESDAY TO RELEASE EDITED TRANSCRIPTS OF PAST SESSIONS AFTER A FIVEYEAR LAG TRANSCRIPTS FOR 1988 ARE TO BE RELEASED EARLY NEXT YEAR THE FED INTENDS TO REMOVE CONFIDENTIAL INFORMATION FROM OR ABOUT INDIVIDUALS BUSINESSES AND FOREIGN CENTRAL BANKS HE SAID BUT FED OFFICIALS WEREN'T ABLE TO AGREE ON WHAT THEY WILL DO ABOUT MEETINGS IN THE FUTURE AND THEY SCHEDULED A SPECIAL MEETING FOR NEXT MONTH ON THAT ISSUE AS RECENTLY AS LAST MONTH MR GREENSPAN TESTIFIED THAT RELEASING A TRANSCRIPT OF FED DELIBERATIONS WOULD SO SERIOUSLY CONSTRAIN THE PROCESS OF FORMULATING POLICY AS TO RENDER THOSE MEETINGS UNPRODUCTIVE THE RELEASE OF THE OLD TRANSCRIPTS IS THE FIRST TANGIBLE VICTORY FOR REP HENRY GONZALEZ THE TEXAS DEMOCRAT WHO IS CHAIRMAN OF THE BANKING COMMITTEE AND HAS LED A CAMPAIGN TO OPEN UP THE FED AND ALTER ITS STRUCTURE REP GONZALEZ HAS PROPOSED THAT THE FED RELEASE TRANSCRIPTS AND VIDEOTAPES OF ITS MEETINGS AFTER 60 DAYS REP GONZALEZ CALLED YESTERDAY'S ACTION A POSITIVE DEVELOPMENT BUT WHOLLY INADEQUATE IN A LETTER TO MR GREENSPAN REP GONZALEZ SAID A FIVEYEAR TIME LAG ON THE PUBLIC RELEASE OF TRANSCRIPTS IS ARBITRARY AND WITHOUT ANY RATIONAL BASIS AND HE REITERATED HIS REQUEST FOR ALL THE TRANSCRIPTS DATING BACK TO 1976 UNTIL LAST MONTH THE TRANSCRIPTS SAT UNDISTURBED AND LARGELY FORGOTTEN IN FOUR FILE DRAWERS IN A SMALL OFFICE AT THE END OF A CORRIDOR LINED BY THE FED BOARD MEMBERS' OFFICES MR GREENSPAN FIRST DISCLOSED PUBLICLY AT AN OCT 19 HEARING THAT THE FED STAFF ROUTINELY PREPARES TRANSCRIPTS FROM TAPES OF ITS MEETINGS NO ONE ON THE BANKING COMMITTEE ASKED MR GREENSPAN IF THE FED HAD KEPT OLD TRANSCRIPTS AND MR GREENSPAN WASN'T EXPLICIT HE TOLD ONE CONGRESSMAN THAT NO PERMANENT ELECTRONIC RECORD EXISTED BECAUSE THE AUDIO TAPES ARE REUSED BUT THAT ROUGH NOTES WERE KEPT REP GONZALEZ ANGERED THAT HE HAD NEVER BEFORE BEEN TOLD ABOUT THE TRANSCRIPTS OR TAPES HAS DEMANDED MORE AND MORE INFORMATION ABOUT WHO KNEW ABOUT THE RECORDS AND WHEN MR GREENSPAN SAID IN AN OCT 26 LETTER TO REP GONZALEZ THAT HE HAS LONG KNOWN ABOUT THE TRANSCRIPTS BUT NONE OF THE CURRENT 12 FED REGIONALBANK PRESIDENTS AND ONLY TWO OF THE SEVEN OTHER GOVERNORS KNEW THEY EXISTED UNTIL LAST MONTH UNTIL 1976 THE FED RELEASED AFTER A LAG OF ABOUT FIVE YEARS A MEMORANDUM OF DISCUSSION THAT PARAPHRASED WHAT EACH PARTICIPANT SAID THE FED CURRENTLY RELEASES A SUMMARY OF THE MEETINGS AFTER A SIXWEEK DELAY BUT DOESN'T IDENTIFY WHO SAID WHAT DESPITE PRESSURE TO RELEASE THE TRANSCRIPTS FED OFFICIALS SAY THEY WILL MAKE FOR BORING READING AND MR GREENSPAN HIMSELF HAS SAID THEY PROVE THAT FED MEETINGS MORE CLOSELY RESEMBLE ACADEMIC DISCUSSIONS THAN POLITICAL ARGUMENTS LYLE GRAMLEY WHO SERVED AS A FED GOVERNOR FOR FIVE YEARS IN THE 1980S AND BEFORE THAT AS A FED STAFFER SAID HE DOESN'T THINK THE RELEASE OF THE TRANSCRIPTS WILL MAKE MUCH DIFFERENCE IT'LL BE TO THE GOOD IF WHAT IT DOES IS ASSURE PEOPLE THAT NOTHING SINISTER GOES ON BEHIND THE CLOSED DOORS OF THE FED HE SAID 9311180147 931118 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 ADVANTA CORP 150 MILLION OF NOTES DUE NOV 15 1996 PRICED AS 5125S AT 99897 TO YIELD 5162 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC BLACK & DECKER CORP 250 MILLION OF NOTES DUE NOV 15 2000 PRICED AT PAR TO YIELD 6625 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 129 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CHEVY CHASE SAVINGS BANK 150 MILLION OF SUBORDINATED CAPITAL NOTES DUE DEC 1 2005 PRICED AS 925S AT 99625 TO YIELD 9302 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE RATED SINGLEB2 BY MOODY'S SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CHRYSLER FINANCIAL CORP 250 MILLION OF NOTES DUE NOV 15 1996 PRICED AS 38125S AT 999299 TO YIELD INITIALLY 38375 THE NONCALLABLE NOTES WILL FLOAT AND PAY QUARTERLY 0375 ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC CHRYSLER FINANCIAL IS A UNIT OF CHRYSLER CORP FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE NOV 26 2003 PRICED AT PAR TO YIELD 6185 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO GIANT INDUSTRIES INC 100 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 15 2003 PRICED AT PAR TO YIELD 975 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO STUDENT LOAN MARKETING ASSOCIATION 700 MILLION OF FLOATINGRATE NOTES DUE NOV 24 1997 TO PAY QUARTERLY AND FLOAT WEEKLY AT 17 BASIS POINTS OVER THREEMONTH TREASURY BILLS ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE CALLABLE AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO BOLLINGER INDUSTRIES INC INITIAL PUBLIC OFFERING OF 14 MILLION COMMON SHARES PRICED AT 1250 A SHARE THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO AND RAUSCHER PIERCE REFSNES INC COFLEXIP INITIAL PUBLIC OFFERING OF 67 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC SAFESKIN CORP INITIAL PUBLIC OFFERING OF 29 MILLION COMMON SHARES PRICED AT 12 A SHARE ACCORDING TO THE COMPANY SMITH BARNEY SHEARSON INC AND MONTGOMERY SECURITIES ARE LEADING UNDERWRITERS TRIDENT NGL HOLDING INC INITIAL PUBLIC OFFERING OF 65 MILLION COMMON SHARES PRICED AT 13 PER SHARE UNDERWRITERS WERE LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP WELBILT CORP INITIAL PUBLIC OFFERING OF 48 MILLION COMMON SHARES PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP GUANGDONG INTERNATIONAL TRUST & INVESTMENT 150 MILLION OF DEBT DUE NOV 15 2003 PRICED AS 675S AT 9982 TO YIELD 6775 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 115 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE 144A ISSUE WAS PRIVATELY PLACED THROUGH FIRMS LED BY CS FIRST BOSTON INC TORCH ENERGY ROYALTY TRUST INITIAL OFFERING OF 75 MILLION UNITS PRICED AT 21 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC CALIFORNIA STATE PUBLIC WORKS BOARD 177 MILLION LEASE REVENUE BONDS SOLD THROUGH A PAINEWEBBER INC GROUP YIELDS RANGE FROM 35 IN 1995 TO 575 IN 2019 MOODY'S RATED THE BONDS A CONDITIONAL SINGLEA1 AND S&P ASSIGNED A PROVISIONAL SINGLEA RATING CHARTER COUNTY OF WAYNE MICH 145 MILLION OF AIRPORT BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP INCLUDED IN THE THREEPART ISSUE ARE 144 MILLION OF SERIES 1993A SUBORDINATELIEN AIRPORT REVENUE REFUNDING BONDS PRICED TO YIELD FROM 3 IN 1994 TO 568 IN 2016 AND SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX 712 MILLION OF SERIES 1993B SUBORDINATELIEN AIRPORT REVENUE BONDS PRICED TO YIELD FROM 39 IN 1996 TO 575 IN 2021 ALSO SUBJECT TO THE ALTERNATIVEMINIMUM TAX AND 595 MILLION OF SERIES 1993C SUBORDINATELIEN AIRPORT REVENUE REFUNDING BONDS PRICED TO YIELD FROM 28 IN 1994 TO 562 IN 2021 NOT SUBJECT TO THE ALTERNATIVEMINIMUM TAX THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P PORT AUTHORITY OF NEW YORK AND NEW JERSEY 300 MILLION OF 91ST SERIES CONSOLIDATED REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 325 IN 1995 TO 525 IN 2012 MOODY'S RATED THE BONDS SINGLEA1 AND S&P ASSIGNED A DOUBLEAMINUS RATING VIRGINIA 152 MILLION OF SERIES 1993B BONDS APPARENTLY WON BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 26 IN 1994 TO 526 IN 2022 THE BONDS HAVE TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 19941 IS BACKED BY THE AGENCY'S 20YEAR 65 MORTGAGE SECURITIES CB5 FRANCE 17 BILLION FRENCH FRANCS OF 56 ASSETBACKED EUROBONDS DUE NOV 7 1998 PRICED AT 9979 VIA CREDIT LYONNAIS YIELD OF 589 OFFERS A PICKUP OF 70 BASIS POINTS OVER THE FRENCH GOVERNMENT FIVEYEAR NOTE COUPON PAYABLE MONTHLY ISSUE COLLATERALIZED BY PERSONAL LOANS FROM CETELEM PART OF THE CIE BANCAIRE GROUP AVERAGE LIFE 176 YEARS FEES 0225 HKCB TREASURY LTD HONG KONG 55 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 1625 NOTES DUE DEC 8 1999 AT PAR VIA BANK JULIUS BAER & CO EACH 50000 FRANC NOTE IS CONVERTIBLE FROM DEC 15 1993 TO NOV 15 1999 AT AN EXPECTED PREMIUM 21 ABOVE THE CLOSING SHARE PRICE NOV 22 FEES 1625 LONGTERM CREDIT BANK OF JAPAN FINANCE NV JAPANESE PARENT100 MILLION OF FLOATINGRATE/FIXEDRATE CALLABLE EUROBONDS DUE DEC 10 2003 PRICED AND REOFFERED TO INVESTORS AT 10155 VIA LTCB INTERNATIONAL COUPON IS THE SIXMONTH LIBOR PLUS 43 BASIS POINTS FOR THE FIRST THREE YEARS AND A FIXED 8 THEREAFTER BONDS CALLABLE DEC 10 1996 GUARANTEED BY LONGTERM CREDIT BANK OF JAPAN FEES TWO MARUBENI CORP JAPAN 20 BILLION YEN OF EURONOTES DUE MARCH 7 1998 PRICED AND REOFFERED TO INVESTORS AT 1002 VIA GOLDMAN SACHS INTERNATIONAL LTD COUPON IS 27 UNTIL MARCH 7 1997 AND SIXMONTH LIBOR LESS 0125 THEREAFTER PUT OPTION AT PAR ON MARCH 7 1997 FEES 025 NISSHO IWAI CORP JAPAN 10 BILLION YEN OF FIXEDRATE/FLOATINGRATE EUROBONDS DUE MARCH 17 1998 PRICED AND REOFFERED TO INVESTORS AT 10025 VIA DKB INTERNATIONAL COUPON IS 34 UNTIL MARCH 17 1997 AND THEREAFTER AT SIXMONTH LIBOR LESS 0125 PUT OPTION AT PAR ON MARCH 17 1997 FEES 025 SUDWESTDEUTSCHE LANDESBANK GERMANY 100 MILLION OF FLOATINGRATE NOTES DUE NOV 24 1998 PRICED AND REOFFERED TO INVESTORS AT 10995 VIA KIDDER PEABODY INTERNATIONAL LTD COUPON IS THREEMONTH LIBOR PLUS 200 BASIS POINTS FEES UNDISCLOSED 9311180146 931117 QVC REQUESTS COURT'S HELP ON PARAMOUNT BIDDER ASKS THAT DEFENSES BE NULLIFIED AS TARGET STANDS BY VIACOM PACT BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL WILMINGTON DEL IN A FIERCE CLASH IN STATE COURT HERE QVC NETWORK INC ACCUSED PARAMOUNT COMMUNICATIONS INC'S DIRECTORS OF ILLEGALLY AGREEING TO CEDE THE COMPANY'S CONTROL TO VIACOM INC IN AN INFERIOR DEAL THAT BLOCKED RIVAL BIDDERS ALL BECAUSE OF MISPLACED LOYALTY TO PARAMOUNT CHAIRMAN MARTIN S DAVIS STRIKING BACK HOWEVER LAWYERS FOR ENTERTAINMENT AND PUBLISHING CONCERN PARAMOUNT AND CABLETELEVISION COMPANY VIACOM VIGOROUSLY DEFENDED THE COMBINATION OF THE TWO COMPANIES AND ATTACKED THE OFFER BY HOMESHOPPING CONCERN QVC AS ILLUSORY AND LITIGATION GRANDSTANDING IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PARAMOUNT SHARES FELL 175 TO CLOSE AT 78375 THE DECLINE IN PARAMOUNT'S STOCK CAME AS TRADERS ANTICIPATED THAT QVC MIGHT WITHDRAW ITS BID WHICH IS HIGHER THAN VIACOM'S WITHOUT A FAVORABLE RULING FROM THE COURT WHICH MAY NOT COME UNTIL THE END OF THE WEEK OR EARLY NEXT WEEK IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE VIACOM CLASS A SHARES CLOSED AT 5175 DOWN 1375 AND ITS CLASS B SHARES CLOSED AT 43375 DOWN 2125 ON THE NASDAQ STOCK MARKET QVC SHARES CLOSED AT 50875 DOWN 875 CENTS VIACOM'S OFFER FOR PARAMOUNT WAS VALUED YESTERDAY AT 79 A SHARE OR 94 BILLION QVC'S OFFER WAS VALUED AT 8936 A SHARE OR 106 BILLION PARAMOUNT HAS REJECTED QVC'S SWEETENED BID DESPITE ITS HIGHER VALUE QVC HAS CONDITIONED ITS OFFER ON THE DELAWARE COURT'S REMOVAL OF PARAMOUNT'S POISON PILL WHICH WOULD ALLOW SHAREHOLDERS TO ACQUIRE STOCK IN A COMBINED QVCPARAMOUNT AT HALF PRICE QVC IS ALSO ASKING THE COURT TO NULLIFY A LOCKUP AGREEMENT THAT WOULD REQUIRE QVC TO PAY VIACOM ROUGHLY 600 MILLION ON TOP OF THE PURCHASE PRICE OF PARAMOUNT SOME ON WALL STREET BELIEVE THAT QVC WILL PROCEED IF IT CAN JUST GET THE POISON PILL REMOVED PARAMOUNT'S ATTORNEY BARRY OSTRAGER SAID QVC'S ENTIRE LITIGATION IS AIMED AT BUYING TIME SO THAT IT CAN MAKE A LEGITIMATE BID LATER IF QVC CAME UP WITH A 125ASHARE OFFER THAT PARAMOUNT CONSIDERED FULLY FINANCED WITH NO CONDITIONS PARAMOUNT WOULD TERMINATE ITS MERGER WITH VIACOM THE ATTORNEY ADDED BUT HIS STATEMENT WAS MADE TO ILLUSTRATE THAT THE CURRENT OFFER IS NOT DEEMED A SERIOUS ONE BECAUSE OF VARIOUS FINANCIAL AND LEGAL CONDITIONS AFTER NEARLY SIX HOURS OF ARGUMENT AT TIMES HARSH BELITTLING AND HUMOROUS CHANCERY COURT JUDGE JACK JACOBS INDICATED THAT HE WOULD RULE SOON NOTING THE CRITICAL TIME ELEMENT NOW CENTRAL TO THE BATTLE VIACOM'S TENDER OFFER IS SET TO EXPIRE ON NOV 22 AS EXPECTED THE TWO SIDES' ARGUMENTS PRIMARILY TURNED ON THEIR CLASHING INTERPRETATIONS OF A 1986 DECISION INVOLVING RONALD PERELMAN'S HOSTILE TAKEOVER OF COSMETIC GIANT REVLON INC THE COURT RULED IN THAT CASE THAT ONCE A COMPANY PUTS ITSELF UP FOR SALE IT MUST BE OPEN TO ALL BIDDERS THAT MIGHT OFFER A HIGHER PRICE LAWYERS FOR VIACOM AND PARAMOUNT ARGUED THAT THE AGREEMENT BETWEEN THE TWO COMPANIES IS A STRATEGIC MERGER THAT WILL PROVIDE THE MOST LONGTERM VALUE FOR SHAREHOLDERS AND DIRECTORS THUS WEREN'T OBLIGED TO AUCTION PARAMOUNT TO THE HIGHEST BIDDER AND WHILE QVC'S ATTORNEY HERBERT WACHTELL CONTENDED THAT THE LOCKUP AGREEMENTS WERE INTENDED TO STYMIE RIVAL BIDDERS VIACOM AND PARAMOUNT RESPONDED THAT THE PROVISIONS WERE NEEDED TO INDUCE VIACOM INTO THE STRATEGIC AGREEMENT QVC USED A CHRONOLOGY OF EVENTS TO MAKE ITS CASE NOTING THAT DESPITE YEARS OF TALKING ABOUT A MERGER TALKS BETWEEN PARAMOUNT AND VIACOM HAD ALWAYS COLLAPSED OVER CONTROL AND VALUATION ISSUES IN EARLY JULY 1993 THE TWO AGAIN FAILED TO SEAL A DEAL WHEN MR DAVIS REJECTED AN OFFER VALUED AT ABOUT 62 A SHARE INCLUDING 1350 IN CASH AND THE REST IN VIACOM SHARES SAID MR WACHTELL BUT JUST TWO MONTHS LATER PARAMOUNT ACCEPTED AN OFFER OF 6914 A SHARE WHICH INCLUDED ONLY 910 IN CASH A SHARE THE DEAL LEFT MR DAVIS AS CHIEF EXECUTIVE QVC CHARGED THAT MR DAVIS FINALLY MADE A DEAL WITH VIACOM OUT OF CONCERN THAT MR DILLER WAS POISED TO MAKE A RUN FOR PARAMOUNT HE CITED MR DAVIS'S DEPOSITION IN WHICH MR DAVIS ACKNOWLEDGED THAT AT A LUNCH IN JULY WITH MR DILLER HE TOLD THE QVC CHAIRMAN I KNOW YOU'RE COMING AFTER ME MR DAVIS SAID IN THE DEPOSITION THAT HE KNEW THIS BECAUSE JOHN MALONE CHIEF EXECUTIVE OF CABLETELEVISION CONCERN TELECOMMUNICATIONS INC HAD TOLD HIM WELL BEFORE THAT TIME 9311180144 931118 FOREIGN EXCHANGE DOLLAR FINISHES MIXED AFTER BUYING TIED TO NAFTA FIZZLES ON PROFITTAKING BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK A DOLLAR RALLY ON OPTIMISM OVER THE NORTH AMERICAN FREE TRADE AGREEMENT FELL VICTIM TO PROFITTAKING YESTERDAY LEAVING THE U S CURRENCY SLIGHTLY LOWER AGAINST THE MARK BUT THE DOLLAR STILL MANAGED TO EDGE UP ON THE YEN AND STERLING WHICH WEAKENED AS SOME SURPRISING UK DATA INDICATED AN INTERESTRATE CUT IS IN THE OFFING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17030 MARKS DOWN FROM 17047 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10685 YEN UP FROM 10677 YEN STERLING WAS TRADING AT 14795 DOWN FROM 14808 AT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10701 YEN AND AT 17059 MARKS DEALERS NOTED THAT THE DOLLAR SPENT THE EARLY PART OF THE GLOBAL DAY CONTINUING TUESDAY'S RALLY WHICH WAS SPARKED BY GROWING SIGNS THAT NAFTA COULD WIN APPROVAL FROM US LAWMAKERS IN THE VOTE SET FOR LAST NIGHT BUT BY MIDDAY IN EUROPE THE DOLLAR WAS HAVING TROUBLE GAINING ANY MORE GROUND AND PLAYERS BEGAN TO FEEL THAT THE RALLY HAD PLAYED ITSELF OUT AS TRADERS CASHED IN THE DOLLAR CAME TUMBLING OFF ITS HIGHS AND TRIPPED SOME STOPLOSS SALES ORDERS AND THE PROFITTAKING CONTINUED THROUGH NORTH AMERICAN TRADING EVEN AS MORE EVIDENCE THAT NAFTA WOULD BE PASSED CONTINUED TO POUR IN UNTIL BUYING INTEREST FINALLY RETURNED AROUND 170 MARKS TO STEADY THE DOLLAR FOR THE REST OF THE DAY YESTERDAY'S REACTION WAS JUST A TECHNICALLY OVERBOUGHT SITUATION SAID MARC COHEN MANAGING DIRECTOR AT C WAVE CAPITAL MANAGEMENT CORP WHO NOTED THAT THE REVERSAL ARRIVED AS TRADERS BEGAN TO SENSE THAT ALL THE BUYING INTEREST ON NAFTA OPTIMISM HAD BEEN EXHAUSTED WE'VE SEEN THIS HAPPEN TIME AND TIME AGAIN BECAUSE THERE AREN'T ENOUGH NEW BUYERS TO PUSH IT HIGHER MR COHEN ADDED THE MARKET PROBABLY TOOK IT UP A LITTLE TOO HIGH IN ADVANCE OF THE NAFTA VOTE ADDED LYNN TIERNEY A VICE PRESIDENT AT SHAWMUT BANK NOT TOO MANY PEOPLE WANT TO BE SPECTACULARLY LONG DOLLARS AHEAD OF THE VOTE SHE ADDED NOTING THAT SOME LINGERING DOUBTS REMAINED IN INVESTORS' MINDS OVER THE OUTCOME TRADERS NOTED THAT THE FOCUS ON NAFTA LARGELY OBSCURED A SURPRISINGLY POSITIVE REPORT ON THE US ECONOMY US HOUSING STARTS ROSE 27 IN OCTOBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF 1396000 UNITS THE HIGHEST LEVEL SINCE FEBRUARY 1990 A DOW JONES CAPITAL MARKETS SURVEY OF ECONOMISTS HAD PREDICTED THE FIGURE WOULD RISE BY ONLY 06 MEANWHILE THE POUND WEAKENED AGAINST THE MARK AS A NEW ROUND OF UK ECONOMIC DATA CONVINCED TRADERS THAT AN INTERESTRATE CUT COULD COME ANY DAY NOW TRADERS SAID THAT A REPORT SHOWING THAT BRITISH INFLATION SLOWED IN OCTOBER TO A YEARONYEAR RATE OF 14 FROM 18 IN SEPTEMBER CONFOUNDED EXPECTATIONS OF A STEADY RATE AND CONVINCED TRADERS THAT THE LAST OBSTACLE TO A RATE CUT WAS GONE AND ADDING TO THE RATECUT FEVER WAS A RETAIL SALES REPORT THAT TRADERS SAID SHOWED A BRITISH ECONOMY THAT IS CRYING OUT FOR STIMULUS OCTOBER RETAIL SALES ROSE 01 FROM SEPTEMBER BELOW SEPTEMBER'S 04 RISE AND ALSO BELOW EXPECTATIONS OF A 02 INCREASE 9311180143 931118 WHO'S NEWS INTERPHASE CORP INTERPHASE CORP DALLAS THIS SUPPLIER OF COMPUTER NETWORK EQUIPMENT APPOINTED R STEPHEN POLLEY PRESIDENT AND CHIEF OPERATING OFFICER AS PRESIDENT MR POLLEY 42 YEARS OLD SUCCEEDS MICHAEL E COPE 46 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHIEF OPERATING OFFICER POST IS A NEW POSITION MR POLLEY WAS ACTING CHIEF EXECUTIVE OF COMPUTER AUTOMATION INC DALLAS AND BEFORE THAT WAS PRESIDENT AND CHIEF EXECUTIVE OF INTELLICALL INC DALLAS 9311180142 931118 WHO'S NEWS MARRIOTT INTERNATIONAL INC MARRIOTT INTERNATIONAL INC WASHINGTON DC MICHAEL A STEIN WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND STEPHEN A WEST WAS APPOINTED SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF THIS LODGING AND SERVICES MANAGEMENT CONCERN MR STEIN 43 YEARS OLD PREVIOUSLY WAS SENIOR VICE PRESIDENT OF FINANCE AND CORPORATE CONTROLLER MR WEST 58 HAD BEEN PRESIDENT AND DEPUTY GENERAL COUNSEL THE APPOINTMENTS ARE A RESULT OF THE DIVISION OF MARRIOTT CORP INTO TWO SEPARATE COMPANIES LAST MONTH 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 9311180141 931118 CREDIT RATINGS S&P UPGRADES RATINGS ON DEERE & CO DEBT VALUED AT 61 BILLION NEW YORK STANDARD & POOR'S CORP RAISED ITS RATINGS ON 61 BILLION OF THE LONGTERM DEBT OF DEERE & CO A MOLINE ILL MANUFACTURER OF FARM AND CONSTRUCTION EQUIPMENT THE CREDITRATING AGENCY SAID THE MOVE REFLECTS DEERE'S STRONGER FINANCIAL CONDITION IN THE WAKE OF A RECENT 535 MILLION COMMONSHARE OFFERING THE OFFERING OFFSET DEERE'S OBLIGATIONS FOR UNFUNDED PENSIONS AND RETIREE MEDICAL BENEFITS THE RATINGS WERE RAISED ON DEERE AND ITS JOHN DEERE CAPITAL CORP UNIT SENIOR DEBT TO SINGLEA FROM SINGLEAMINUS SUBORDINATED DEBT WAS RAISED TO SINGLEAMINUS FROM TRIPLEBPLUS AND COMMERCIAL PAPER WAS RAISED TO A1 FROM A2 THE DEBT HAD BEEN ON CREDITWATCH SINCE SEPT 6 S&P SAID THE UPGRADES ALSO REFLECT ITS FORECAST FOR DEERE'S FARM EQUIPMENT SALES TO BENEFIT FROM THE STRONG CASH FLOW AND REDUCED DEBT LEVELS OF FARMERS 9311180140 931118 CANADA MANUFACTURERS RECORD FURTHER GAINS IN SHIPMENTS ORDERS OTTAWA CANADIAN MANUFACTURERS RECORDED FURTHER GAINS IN SHIPMENTS AND NEW ORDERS IN SEPTEMBER SAID STATISTICS CANADA A GOVERNMENT AGENCY SEASONALLY ADJUSTED SHIPMENTS INCREASED IN SEPTEMBER FOR THE SECOND CONSECUTIVE MONTH RISING 14 FROM AUGUST TO A RECORD 2634 BILLION CANADIAN DOLLARS US2008 BILLION THE GAIN IN SHIPMENTS WAS LED BY WOOD AUTOS AND PRIMARY METALS THE STRENGTH IN AUTO SHIPMENTS WAS ATTRIBUTED PARTLY TO DELIVERIES IN ADVANCE OF SCHEDULED PLANT SHUTDOWNS FOR PRODUCTIONLINE CHANGES SEASONALLY ADJUSTED NEW ORDERS ALSO INCREASED IN SEPTEMBER FOR THE SECOND CONSECUTIVE MONTH RISING 15 FROM AUGUST TO C2620 BILLION UNFILLED ORDERS HOWEVER DECLINED IN SEPTEMBER FOR THE THIRD CONSECUTIVE MONTH DROPPING 06 TO C2422 BILLION 9311180139 931118 IN LITTLETON COLO VOTERS EXPEL EDUCATION FADDISTS BY VINCENT CARROLL CONTRARY TO WHAT YOU MAY HAVE READ THE MOST SIGNIFICANT VOTE THIS MONTH INVOLVING EDUCATION DID NOT OCCUR IN CALIFORNIA AND IT DID NOT HAVE TO DO WITH VOUCHERS PREVIOUS STATEWIDE VOTES IN OREGON AND COLORADO HAD ALREADY PROVED TO THOSE WILLING TO SEE THAT A FULLBLOWN VOUCHER PLAN CANNOT YET ATTRACT MUCH MORE THAN A THIRD OF THE ELECTORATE NO THE MOST IMPORTANT EDUCATION VOTE MAY WELL HAVE OCCURRED IN LITTLETON COLO A MIDDLECLASS SUBURB OF DENVER THERE A SLATE OF THREE BACKTOBASICS CANDIDATES CRUSHED ANOTHER COALITION INCLUDING TWO INCUMBENTS THAT SUPPORTED A HOST OF TRENDY EDUCATIONAL REFORMS AND WAS BACKED BY THE EDUCATIONAL ESTABLISHMENT ALL 15 ELEMENTARY PRINCIPALS FOR EXAMPLE RELEASED AN OPEN LETTER TO VOTERS DENOUNCING THE INSURGENT SLATE YET THE MARGIN OF VICTORY WAS NEARLY 2 TO 1 WHAT HAD SO GALVANIZED VOTERS THE FACT THAT THEIR DISTRICT IS A NATIONAL LEADER IN IMPLEMENTING OUTCOMESBASED EDUCATION OBE AND THAT OFFICIALS THERE HAD AS THE JOURNAL EDUCATION WEEK EXPLAINED IN A PREELECTION ARTICLE ACKNOWLEDGING THE CONTEST'S SIGNIFICANCE PIONEERED NEW PERFORMANCE ASSESSMENTS AND STANDARDS FOR HIGH SCHOOL GRADUATION TROUBLE IS MANY LITTLETON PARENTS SUSPECTED THE REFORMS WOULD WATER DOWN CURRICULUM AND DEVALUE THE IMPORTANCE OF FACTUAL KNOWLEDGE THEY HAD GOOD REASON TO BE SUSPICIOUS ONE HIGH SCHOOL PRINCIPAL HAD TOLD REPORTERS THE YEAR BEFORE THAT IT WAS MORE IMPORTANT TO KNOW HOW TO FIND STATES ON A MAP THAN TO MEMORIZE THEIR LOCATION WHEN I QUESTIONED THIS PRINCIPAL FURTHER HE EVEN REFUSED TO AGREE THAT EVERY GRADUATE SHOULD KNOW SOMETHING ABOUT THE DEPRESSION THE HOLOCAUST AND WORLD WAR II HE SUGGESTED RATHER THAT ANY DEFINITION OF CULTURAL LANDMARKS WAS ARBITRARY AND THEREFORE PRESUMPTUOUS ANYONE WHO LISTENS TO THE DOMINANT REFORMIST RHETORIC OF TEACHERS AND ADMINISTRATORS THESE DAYS HEARS SIMILAR ANTIINTELLECTUALISM ALL THE TIME HAVING ACKNOWLEDGED THAT AMERICAN SCHOOLS ARE IN NEED OF IMPROVEMENT A GROWING NUMBER OF EDUCATORS ARE GRAVITATING TOWARD THE VIEW THAT THE FAULT LIES IN TOO MUCH EMPHASIS ON CONTENT KNOWLEDGE AND NOT ENOUGH CONCERN TO QUOTE THE LITTLETON PRINCIPAL AGAIN WITH DECISIONMAKING SKILLS THINKING SKILLS AND THE ABILITY TO FIND AND USE INFORMATION OR TO QUOTE THE LITTLETON ELEMENTARY PRINCIPALS' LETTER STUDENTS MUST DO MORE THAN SPELL AND COMPUTE THEY MUST BE ABLE TO REASON PERSUADE AND SOLVE PROBLEMS YET THIS SUPPOSED DICHOTOMY BETWEEN KNOWLEDGE AND SKILLS IS MOST CERTAINLY FALSE AS ED HIRSCH AUTHOR OF CULTURAL LITERACY AND FATHER OF A CORE CURRICULUM FOR SCHOOLS HAS WRITTEN LITERACY REQUIRES US TO HAVE BOTH INTENSIVE KNOWLEDGE OF RELATIONSHIPS AND EXTENSIVE KNOWLEDGE OF SPECIFICS GOOD TEACHING WAS NEVER A MATTER OF MERELY DISHING OUT FACTS NEVERTHELESS OBE PROPONENTS WITH THEIR EMPHASIS ON THINKING SKILLS REPEATEDLY CONTRAST THEIR THEORY WITH AN APPROACH THAT HASN'T BEEN IN VOGUE FOR DECADES ONE OF PERPETUAL ROTE LEARNING IN WHICH ALL CREATIVITY IS STIFLED EDUCATION WEEK IS TYPICAL IN PRESENTING THIS CARICATURE IT DESCRIBED THE LITTLETON REFORMS AS NOTHING MORE THAN ENCOURAGING STUDENTS TO FOCUS ON PROBLEMSOLVING RATHER THAN MEMORIZATION AS IF A NATION IN WHICH ONLY 32 OF 17YEAROLDS IN A 1986 SURVEY COULD PLACE THE CIVIL WAR IN THE CORRECT HALFCENTURY WAS IN DANGER OF STUFFING TOO MANY FACTS INTO STUDENTS' HEADS SUCH SUBTLE DENIGRATION OF KNOWLEDGE ALARMED SOME LITTLETON PARENTS THEY WERE HARDLY REASSURED WHEN NEW GRADUATION REQUIREMENTS WERE SO BROADLY DEFINED AS TO BE MEANINGLESS AND WERE EVEN IN A FEW CASES NONACADEMIC OBE DEPENDS CRITICALLY ON SCHOOLS ADOPTING ASSESSMENTS OFTEN NONTRADITIONAL AND NOT STANDARDIZED OF THE VARIOUS OUTCOME GOALS AS THE INSURGENT SLATE OF CANDIDATES NOTED IN A POSITION PAPER ON THE SUBJECT THIS STRATEGY PLACES AN IMPRESSIVE NEW RESPONSIBILITY ON OUR TEACHERS ONE FOR WHICH THEY HAVE HAD NO PREPARATION EITHER IN TRAINING OR EXPERIENCE NATURALLY THE EDUCATION ESTABLISHMENT DOES NOT TAKE KINDLY TO SUCH CRITICISM AND THE CAMPAIGN SLID INTO NASTINESS THE BACKTOBASICS PROPONENTS BILL CISNEY THE OWNER OF A FABRIC STORE CAROL BRZECZEK A PARTTIME ACCOUNTANT AND JOHN FANCHI A PHYSICIST WHO WORKS FOR MARATHON OIL WERE ACCUSED OF FAVORING STERILE CLASSROOMS AND MINDLESS ROTE LEARNING MOST NOTABLY THOUGH THANKS IN PART TO THE INTERVENTION OF PEOPLE FOR THE AMERICAN WAY THE CANDIDATES WERE ACCUSED OF BEING STEALTH AGENTS OF THE RELIGIOUS RIGHT INDEED IT HAS BECOME A STANDARD TACTIC OF THOSE DEFENDING OUTCOMEBASED EDUCATION TO DESCRIBE THEIR OPPONENTS AS RELIGIOUS FANATICS IN PART THIS IS BECAUSE THE REV PAT ROBERTSON AND SEVERAL POLITICAL ALLIES HAVE DENOUNCED OBE WHICH THEY SEE AS AN ATTEMPT TO RESHAPE STUDENT VALUES IT SO HAPPENS HOWEVER THAT OBE HAS CRITICS FROM ACROSS THE POLITICAL SPECTRUM IN ANY EVENT NONE OF THE THREE MEMBERS OF THE LITTLETON SLATE IS AFFILIATED WITH A FUNDAMENTALIST CONGREGATION AND THE SLATE LEADER EVEN REPORTED THAT HE DOESN'T GO TO CHURCH THE VERY FACT THAT HE FELT HE HAD TO REVEAL SUCH IRRELEVANT PERSONAL INFORMATION AND TO REPEAT IT MORE THAN ONCE GIVES SOME IDEA OF THE TONE OF THE CAMPAIGN ACROSS AMERICA SCHOOL DISTRICTS ARE CONSIDERING OR PUTTING IN PLACE REFORMS SIMILAR TO THOSE IN LITTLETON EDUCATORS OFTEN WITH THE BEST OF INTENTIONS ARE REWRITING REPORT CARDS TO INCLUDE FUZZY CRITERIA SUCH AS SELFESTEEM AND INTERPERSONAL RELATIONSHIPS THEY ARE DENIGRATING STANDARDIZED MEASUREMENTS OF KNOWLEDGE AND THE MEMORIZATION OF FACTS TO BE SURE NOT ALL OF THE RETHINKING IS MISGUIDED BUT SOME OF IT AMOUNTS TO DUBIOUS EXPERIMENTATION ON CHILDREN LITTLETON PROVES THAT WITH THE PROPER CANDIDATES THE MOVEMENT TOWARD A VAGUE SKILLORIENTED CURRICULUM CAN BE STOPPED IN ITS TRACKS MR CARROLL IS THE EDITORIAL PAGE EDITOR OF THE ROCKY MOUNTAIN NEWS IN DENVER 9311180138 931118 DEERE TO REDEEM DEBENTURES MOLINE ILL DEERE & CO SAID IT WILL REDEEM TWO DEBENTURE ISSUES ON JAN 4 THE FARM AND CONSTRUCTION EQUIPMENT MANUFACTURER SAID IT WILL REDEEM ALL 80 MILLION OF ITS 8 DEBENTURES DUE 2002 THE REDEMPTION PRICE WILL BE EQUAL TO THE PRINCIPAL AMOUNT PLUS INTEREST TO THE REDEMPTION DATE AND A 138 PREMIUM DEERE SAID ITS JOHN DEERE CAPITAL CORP UNIT WILL REDEEM ALL 40 MILLION OF ITS 935 SUBORDINATED DEBENTURES DUE 2003 THE REDEMPTION PRICE WILL BE EQUAL TO THE PRINCIPAL AMOUNT PLUS INTEREST TO THE REDEMPTION DATE AND A 225 PREMIUM 9311180137 931118 GANTOS BANKRUPTCY FINANCING GRAND RAPIDS MICH GANTOS INC HAS RECEIVED APPROVAL FOR 75 MILLION IN DEBTORINPOSSESSION FINANCING FROM THE US BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN THE RETAILER OF WOMEN'S CLOTHING FILED FOR REORGANIZATION LAST WEEK UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE UNDER ITS REORGANIZATION PLAN THE RETAIL CHAIN PLANS TO CLOSE 54 OF ITS 159 STORES CURRENTLY OPERATING IN 25 STATES 9311180136 931118 INTERNATIONAL AS VOLVO DIRECTORS MEET MANY EXPECT RENAULT MERGER PLAN WILL BE CLARIFIED BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM DIRECTORS OF AB VOLVO GATHER TODAY FOR DELIBERATIONS OVER THE PROPOSED MERGER WITH RENAULT SA OF FRANCE AND MANY VOLVO SHAREHOLDERS BELIEVE THE MEETING WILL PRODUCE IMPORTANT CLARIFICATIONS OF THE PLAN WHICH HAS COME UNDER INCREASING ATTACK MANY INVESTORS ARE EXPECTING A WRITTEN PLEDGE FROM FRENCH INDUSTRY MINISTER GERARD LONGUET THAT FRANCE WOULD NEVER APPLY THE POWERS OF ITS GOLDEN SHARE AGAINST VOLVO THAT WOULD RESCIND A PREVIOUS VERSION OF THE GOLDENSHARE ARRANGEMENT UNDER WHICH VOLVO COULD HAVE BEEN FORCED TO SLASH RETROACTIVELY ITS RENAULTVOLVO STAKE TO 20 FROM 35 UNDER CERTAIN CIRCUMSTANCES AT FRANCE'S DEMAND BULLISH VOLVO SHAREHOLDERS ALSO THINK THE FRENCH GOVERNMENT WILL PROMISE TO PRIVATIZE RENAULT BEFORE THE END OF 1994 SEVERAL MONTHS EARLIER THAN PREVIOUSLY INDICATED THE BOARD MEETING IS THE FIRST SINCE DIRECTORS CAPITULATED TO MOUNTING OPPOSITION AMONG BIG INSTITUTIONAL SHAREHOLDERS AND ORDERED A ONEMONTH POSTPONEMENT TO DEC 7 OF THE SPECIAL MEETING SCHEDULED FOR A VOTE ON THE MERGER PLAN VOLVO MANAGEMENT PROMISED TO USE THE EXTRA TIME BEFORE THE DEC 7 VOTE TO SEEK CHANGES DEMANDED BY HOLDERS IN KEY PARTS OF THE ACCORD THE MAIN STICKING POINTS HAVE BEEN THE GOLDEN SHARE AND THE TIMING OF RENAULT'S PRIVATIZATION A STEADY STREAM OF SENIOR VOLVO EXECUTIVES HAVE SHUTTLED TO PARIS FOR DISCUSSIONS WITH FRENCH OFFICIALS DURING THE PAST TWO WEEKS MR LONGUET HAS HINTED PUBLICLY THAT THE GOVERNMENT MIGHT BE PREPARED TO OFFER COMPROMISES TO COMPLETE THE MERGER WHICH WOULD COMBINE VOLVO'S CAR AND TRUCK DIVISIONS WITH RENAULT VOLVO'S CHIEF EXECUTIVE OFFICER SOEREN GYLL BRIEFED MR LONGUET IN PARIS ON TUESDAY ABOUT SWEDISH HOLDERS' OBJECTIONS TO THE MERGER AFTER THE MEETING MR GYLL SAID THE FRENCH GOVERNMENT SHOWED CONSIDERABLE UNDERSTANDING OF THE CONCERN THAT HAS SURFACED HE DECLINED TO COMMENT FURTHER SOME SKEPTICAL INVESTORS STILL DOUBT THAT MR GYLL MANAGED TO WREST THE NECESSARY CONCESSIONS IN THE MEANTIME ANOTHER ISSUE HAS SURFACED SOME ANALYSTS ARE SUGGESTING THAT A DISPUTE OVER VOLVO'S BYLAWS COULD SNARL VOLVO MANAGEMENT'S TACTICS IN THE SHAREHOLDER VOTE AKTIESPARANA SWEDEN'S NATIONAL SMALLSHAREHOLDERS ASSOCIATION WHICH IS WAGING A PROXY BATTLE TO FORCE CANCELLATION OR RENEGOTIATION OF THE RENAULT PACT CLAIMS VOLVO BYLAWS REQUIRE APPROVAL BY TWOTHIRDS OF SHAREHOLDERS ATTENDING THE GENERAL MEETING NOT A SIMPLE MAJORITY TO COMPLETE THE MARRIAGE VOLVO DIRECTORS INSIST A SIMPLE MAJORITY IS SUFFICIENT LEGAL EXPERTS REMAIN DIVIDED OVER THE ISSUE BUT SOME INVESTORS WORRY THAT THE BYLAW DEBATE COULD LEAD TO A PROTRACTED LEGAL BATTLE AND DELAY COMPLETION OF THE MERGER IF THE VOTE TURNS OUT TO BE CLOSE 9311180135 931118 DIVIDEND NEWS BALTIMORE BANCORP BALTIMORE BANCORP REINSTATED THE QUARTERLY DIVIDEND THAT HAD BEEN SUSPENDED IN THE THIRD QUARTER OF 1991 THE BANK HOLDING COMPANY DECLARED A DIVIDEND OF FIVE CENTS PAYABLE DEC 29 TO STOCK OF RECORD DEC 15 BALTIMORE BANCORP LAST PAID A DIVIDEND OF NINE CENTS ON OCT 1 1991 THE COMPANY SAID IT INTENDS TO PAY REGULAR QUARTERLY DIVIDENDS SUBJECT TO REGULATORY APPROVAL AND CONTINUED FINANCIAL PROGRESS 9311180134 931118 FINANCING BUSINESS MAGMA COPPER CO MAGMA COPPER CO TUCSON ARIZ SAID IT WILL OFFER 18 MILLION SHARES OF CUMULATIVE CONVERTIBLE PREFERRED STOCK SERIES E UNDER A SHELF REGISTRATION PREVIOUSLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AT AN ESTIMATED PRICE OF 50 A SHARE THE COPPER PRODUCER SAID IT WILL USE PROCEEDS FOR GENERAL CORPORATE PURPOSES INCLUDING PROJECT DEVELOPMENT THE OFFERING WILL BE UNDERWRITTEN BY MERRILL LYNCH & CO AND GOLDMAN SACHS & CO 9311180133 931118 KITCHENSINK BONDS MAY OFFER EVERYTHING BUT STABILITY BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THERE THEY GO AGAIN WALL STREETERS HAVE FIGURED OUT A NEW WAY TO TURN EXPLOSIVE SECURITIES INTO TAMELOOKING INVESTMENTS ONCE AGAIN BANKS ARE THE TARGETED BUYERS BUT REGULATORS FEAR THE BONDS' FUTURE MAY PROVE STORMIER THAN BUYERS EXPECT BANKS AND OTHER FINANCIAL INSTITUTIONS HAVE BOUGHT MORE THAN 35 BILLION OF THEM SINCE APRIL THE OFFERINGS ARE CALLED SECURED INVESTOR TRUSTS BUT KNOWN ON THE STREET AS KITCHENSINK BONDS BECAUSE THEY ARE BACKED BY EVERYTHING BUT FOR SECURITIES FIRMS AND SOME OF THEIR CLIENTS KITCHENSINKERS ARE A GODSEND THE BONDS ARE ISSUED BY TRUSTS INTO WHICH WALL STREET DUMPS BITS AND PIECES OF CAPRICIOUS HARDTOVALUE MORTGAGEBACKED SECURITIES IF THE MARKET FOR A CERTAIN MERCURIAL MORTGAGEBACKED BOND SHOULD DRY UP JUST POP IT INTO A TRUST AND GET IT OFF THE INVESTORS' BOOKS YET EVEN THE BONDS' ADMIRERS AREN'T WITHOUT QUALMS MICHAEL MAY VICE PRESIDENT OF THE FEDERAL HOME MORTGAGE LOAN CORP WHICH ISSUES MORTGAGEBACKED SECURITIES AND HAS BEEN CONSIDERING ISSUING THIS TYPE CONCEDES SOME DAYS I FEEL JUST FINE SOME DAYS THEY MAKE ME NERVOUS AS HELL KITCHENSINKERS ARE THE OFFSPRING OF MORTGAGEBACKED SECURITIES WHICH ARE BACKED BY THE INTEREST AND PRINCIPAL PAYMENTS FROM POOLS OF MORTGAGE LOANS WALL STREET CARVES UP THE CASH FLOWS FROM THOSE SECURITIES INTO QUIRKIER BONDS KNOWN AS COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS THERE ARE MORE THAN 800 BILLION OF CMOS ON THE MARKET THE PROBLEM IS A FEW CMOS ARE JUST TOO WEIRD FOR INVESTORS TO DIGEST THESE CMOS MAY LANGUISH IN THE INVENTORIES OF WALL STREET FIRMS THAT UNDERWRITE CMOS OR ON THE BOOKS OF CUSTOMERS POSING RISKS KITCHENSINKERS ARE THE LATEST WAY WALL STREET GUSSIES UP MERCURIAL BONDS AND PASSES THEM ON TO OTHER INVESTORS THE IDEA IS TO LUMP LOTS OF THE UNPALATABLE CMOS INTO ANOTHER DIVERSIFIED POOL THEN RECUT THE UNDERLYING CASH FLOW INTO PIECES THAT APPEAR MORE APPETIZING TO THE EXTENT THAT THIS CREATES DEMAND FOR MORE ESOTERIC CMOS THE DEALS WILL IMPROVE THE MARKET OVERALL SAYS MR MAY OF FREDDIE MAC BECAUSE KITCHENSINKERS CARRY TRIPLEA RATINGS FROM CREDITRATING SERVICES THEIR RISKS AREN'T OBVIOUS THE TOPNOTCH RATING FROM FITCH INVESTORS SERVICE INC AND DUFF & PHELPS CREDIT RATING CO REFLECTS HOW THE DEALS WERE STRUCTURED NOT THE UNDERLYING ASSETS' SAFETY THE BONDS WILL BOAST THE TRIPLEA RATING AS LONG AS THE UNDERLYING SECURITIES THROW OFF ENOUGH CASH TO PAY INVESTORS AS PROMISED A STRUCTURE KNOWN AS A CASHFLOW BOND NEVER MIND IT'S A SLIGHT PROMISE TO REPAY INVESTORS THEIR PRINCIPAL AT THE TRUSTS' EXPIRATION IN SOME 30 YEARS WHAT LURES INVESTORS IS THE TWO PERCENTAGE POINTS ABOVE FLOATING SHORTTERM RATES THEY WILL GET IF THE BONDS WORK OUT AND WHAT IF THEY DON'T FEDERAL REGULATORS AND EVEN CRITICS ON WALL STREET WORRY THAT THE BONDS ARE TOO COMPLEX TO ANALYZE AND MAY BE UNSALABLE AS A RESULT THE TRUSTS CONTAIN PIECES OF DOZENS OF MORTGAGE DEALS SOME PRIVATELY PLACED FROM AS MANY AS A DOZEN UNDERWRITERS OUR CONCERN WITH THIS PRODUCT IS THE PURCHASER'S ABILITY TO TEST THE VOLATILITY OF THE SECURITIES SAYS WILLIAM A STARK ASSISTANT DIRECTOR OF THE OFFICE OF CAPITAL MARKETS AT THE FEDERAL DEPOSIT INSURANCE CORP WHICH INSURES BANK DEPOSITS THE OFFICE OF THRIFT SUPERVISION HAS DETERMINED THAT THE BONDS ARE HIGHRISK HOLDINGS WHICH MEANS THE THRIFTS HOLDING THEM WOULD HAVE TO MARK THEM TO MARKET PRICES EARLIER THIS FALL MORTGAGE PREPAYMENTS REACHED RECORD LEVELS AS INTEREST RATES FELL AND HOMEOWNERS RUSHED TO REFINANCE AT LOWER RATES THAT DROVE DOWN THE PRICE OF CMOS WHOSE RETURNS RELY SOLELY ON INTEREST NOT PRINCIPAL PAYMENTS ON THE UNDERLYING MORTGAGES SUCH BONDS SUFFER WHEN MORTGAGE PREPAYMENTS RISE BECAUSE IT MEANS THE INTEREST PAYMENTS EARMARKED FOR THEM ARE CUT OFF EARLY INSURANCE COMPANIES FEELING THE HEAT OF NEW REGULATIONS WANTED TO DUMP SUCH INTERESTONLY BONDS AS IOS AND PAC IOS OR PLANNED AMORTIZATION CLASS A STRUCTURE INTENDED TO BE MORE STABLE WHEN NO ONE WANTED THEM THE SELLERS COULDN'T GET AN ACCEPTABLE PRICE WALL STREET FIRMS CREATED THE KITCHENSINK TRUSTS TO SEIZE ON THE PROFIT OPPORTUNITY CREATED BY MATCHING UP THE POORSELLING IOS WITH BANKS' RAVENOUS APPETITE FOR FLOATINGRATE BONDS BEAR STEARNS & CO HAS ISSUED NEARLY 25 BILLION SINCE APRIL REAPING AT LEAST 25 MILLION IN PROFIT AND SAVINGS BANKS ARE ESPECIALLY ENAMORED OF FLOATINGRATE MORTGAGEBACKED BONDS BECAUSE THEY ARE EXEMPT FROM STRINGENT NEW RULES INTENDED TO MONITOR THE INTERESTRATE SENSITIVITY OF BANKS' PORTFOLIOS THE RULES RESTRICT BANK INVESTMENTS IN THE MOST VOLATILE MORTGAGEBACKED SECURITIES BUT THAT HAS BARELY DAMPED BANKS' APPETITES FOR BONDS THAT CAN MATCH THEIR SHORTTERM LIABILITIES HOLDINGS OF CMOS BY THE 100 LARGEST BANKS NEARLY TRIPLED TO 90 BILLION IN THE FIRST HALF OF 1993 ACCORDING TO INSIDE MORTGAGE SECURITIES A NEWSLETTER THE WALL STREET FIRMS PUTTING THESE DEALS TOGETHER INSIST THAT THE TRUSTS PROVIDE A RESALE MARKET FOR HARDTOANALYZE BONDS THAT ARE PRONE TO FALLING OUT OF FAVOR IF THERE ISN'T A BID IN THE MARKET SAYS ONE DEAL DESIGNER AT LEAST YOU CAN GET THE BONDS OFF YOUR BOOKS INCREASINGLY HOWEVER UNDERWRITERS ARE USING THE TRUSTS TO ABSORB THE RISKY REMNANTS OF NEW ISSUES WHICH MUST BE SOLD IN ORDER TO SELL THE REST OF THE DEAL CASE IN POINT THE 263 MILLION KITCHENSINKER SOLD LAST MONTH BY BEAR STEARNS THE TRUST CONTAINS PIECES OF 28 MORTGAGEBACKED DEALS FROM NINE UNDERWRITERS AND IS REPLETE WITH SUCH ESOTERICA AS INVERSE TWOTIERED INDEX BONDS WHICH ARE CAPPED BONDS THAT FLOAT INVERSELY TO A POPULAR INTERESTRATE INDEX ABOUT 85 MILLION OF THE BONDS CAME FROM BEAR STEARNS' INVENTORY INCLUDING INVERSE TWOTIERED INDEX BONDS IOS AND INVERSE FLOATERS WHICH PAY LESS AS RATES RISE THE REST WERE CREATED BY DEALERS AT GENERAL ELECTRIC CO'S KIDDER PEABODY & CO UNIT LEHMAN BROTHERS MERRILL LYNCH & CO SALOMON BROTHERS INC FIRST BOSTON CORP GOLDMAN SACHS AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP MANY OF THE BONDS IN THE TRUST ARE LESS THAN SIX MONTHS OLD AND MAY NEVER HAVE BEEN SOLD OUT OF THE DEALERS' INVENTORY BEFORE BEING ABSORBED IN THE TRUST YET THERE ISN'T ANY DISCLOSURE ABOUT WHERE THE BONDS CAME FROM OR WHO UNDERWROTE THEM IN DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THERE ISN'T INFORMATION ABOUT THE PRICE AT WHICH THE BONDS WERE CONTRIBUTED TO THE TRUST NOR THE VALUATION METHOD BEAR STEARNS USED SUCH DISCLOSURE WOULD BE REQUIRED FOR A BOND UNDERWRITING OR A PUBLIC SALE OF STOCK BUT IT IS ABSENT HERE BECAUSE THE SECURITIES IN THE TRUST CMOS BACKED BY MORTGAGES WITH CREDIT GUARANTEES FROM FREDDIE MAC AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ARE DEEMED TO BE SECURITIES ISSUED BY GOVERNMENTSPONSORED ENTITIES EXEMPT FROM DISCLOSURE REQUIREMENTS OF THE SECURITIES ACT OF 1933 A BEAR STEARNS OFFICIAL SAID IT PLACED BONDS IN THE TRUSTS WHEN THEIR CASH FLOWS WERE NEEDED TO MAKE THE DEAL WORK OR THE TRUSTS PROVIDED THE BEST PRICE 9311180132 931118 MARKETING & MEDIA COCACOLA PLANS TO SHORTEN TIME OF SODA LAUNCHES BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COCACOLA CO IN AN ATTEMPT TO CAPITALIZE ON RAPID SHIFTS IN CONSUMER TASTES SAID IT WILL GREATLY SHORTEN BOTH THE TIME IT TAKES TO LAUNCH NEW PRODUCTS AND THE LIFE CYCLE OF THOSE PRODUCTS IN A SPEECH TO THE NEW YORK SOCIETY OF SECURITY ANALYSTS CHAIRMAN AND CHIEF EXECUTIVE ROBERTO C GOIZUETA SAID THE ATLANTA BEVERAGE CONCERN WILL INTRODUCE MORE TRENDY PRODUCTS MAKING MONEY AND THEN YOU TAKE THEM OUT WHEN THE TRENDS FIZZLE SUCH A STRATEGY SAY INDUSTRY EXPERTS IS A BIG SHIFT FOR A COMPANY THAT HAS IN THE PAST TAKEN A LONGTERM AND MOSTLY BLOCKBUSTER APPROACH TO NEW PRODUCTS CAREFULLY CREATING BRANDS AND THEN NURTURING THEM OVER LONG PERIODS OF TIME MR GOIZUETA CITED TAB CLEAR THE CLEAR VERSION OF THE DIET DRINK THAT WAS INTRODUCED LAST YEAR AS AN EXAMPLE OF THE COMPANY'S NEW STRATEGY BOTH TAB CLEAR AND CRYSTAL PEPSI ARE ABOUT TO DIE MR GOIZUETA SAID HE LATER SAID THAT COKE WILL KEEP TAB CLEAR ON THE SHELVES AS LONG AS PEOPLE BUY IT AND HAS NO IMMEDIATE PLANS TO REMOVE IT TAB CLEAR HAD SUPERMARKET SALES BETWEEN 26 MILLION AND 4 MILLION ACCORDING TO TWO INDUSTRY ESTIMATES CRYSTAL PEPSI THE CLEAR COLA PEPSICO INC INTRODUCED LAST YEAR HAD ABOUT 1024 MILLION IN SALES THIS YEAR UNTIL OCTOBER ACCORDING TO INFORMATION RESOURCES INC THAT'S LESS THAN ONETENTH THE SALES OF REGULAR PEPSI ACCORDING TO INFORMATION RESOURCES BOTH BRANDS SUFFERED FROM THEIR INHERENT CONTRADICTION THAT COLA IS EXPECTED TO BE BROWN A PEPSICOLA SPOKESWOMAN SAID NONETHELESS THAT THE COMPANY CONSIDERS CRYSTAL PEPSI A SUCCESS AND REMAINS COMMITTED TO SUPPORTING THE BRAND IT'S BIGGER THAN WHEATIES SHE SAID COCACOLA'S NEW PRODUCT STRATEGY IS A REFLECTION OF THE INCREASED POPULARITY OF A WIDE RANGE OF NONCOLA DRINKS FROM BOTTLED TEAS TO CLEAR FRUITY SODAS CALLED NEWAGE BEVERAGES THE INCREASING FRAGMENTED MARKET REQUIRES A STRATEGY SHIFT SAID ROY BURRY ANALYST WITH KIDDER PEABODY & CO INDEED MR GOIZUETA ACKNOWLEDGED ALL OF US HAVE TO GET USED TO A NEW AGE BEVERAGE OR QUASIRARE BEVERAGE BUT COKE'S NEW STRATEGY ISN'T WITHOUT RISK SAY SOME INDUSTRY EXPERTS WHO FEAR IT MAY ERODE THE BRAND EQUITY COKE HAS BUILT THE STRENGTH OF THE COMPANY HAS BEEN THE NAME SAYS TOM PIRKO A NEW YORK BEVERAGE CONSULTANT IF THERE IS NO ASSOCIATION WITH THE COMPANY THEY ARE JUST LIKE EVERYBODY ELSE 9311180131 931118 COLUMBIA HEALTHCARE HCA ARE ASKED FOR ADDITIONAL MERGER DATA BY FTC COLUMBIA HEALTHCARE CORP AND HCAHOSPITAL CORP OF AMERICA SAID THE FEDERAL TRADE COMMISSION HAD MADE A LIMITED REQUEST FOR ADDITIONAL INFORMATION REGARDING CERTAIN MARKETS INVOLVED IN THE PROPOSED MERGER OF THE HOSPITAL CHAINS IN A JOINT NEWS RELEASE THE COMPANIES PROVIDED FEW DETAILS REGARDING THE FTC'S REQUEST EXCEPT TO SAY THAT THEY DIDN'T THINK IT WOULD MATERIALLY AFFECT THE CONTINUING OPERATIONS OF EITHER COMPANY OR DELAY THE PROPOSED MERGER WHICH IS EXPECTED TO BE COMPLETED DURING THE FIRSTQUARTER OF 1994 REPRESENTATIVES OF THE TWO COMPANIES DECLINED TO PROVIDE ADDITIONAL DETAILS AND THE FTC DIDN'T RETURN CALLS SEEKING COMMENT COLUMBIA BASED IN LOUISVILLE KY ANNOUNCED LAST MONTH THAT IT WOULD ACQUIRE HCA BASED IN NASHVILLE TENN FOR ABOUT 57 BILLION IN STOCK THE MERGER WOULD CREATE THE NATION'S LARGEST FORPROFIT HOSPITAL CHAIN WITH 190 HOSPITALS AND MORE THAN 42000 BEDS IN 26 STATES TO EVALUATE MERGERS AND ACQUISITIONS FOR POSSIBLE ANTITRUST VIOLATIONS THE FTC FREQUENTLY REQUESTS ADDITIONAL INFORMATION FROM THE COMPANIES INVOLVED SO FAR SUCH REQUESTS HAVEN'T HINDERED COLUMBIA'S RAPID GROWTH ALTHOUGH TO COMPLETE MERGERS THE COMPANY HAS HAD TO SELL OFF FACILITIES TO REDUCE ITS DOMINANCE IN CERTAIN MARKETS THE FTC MADE A SIMILAR REQUEST EARLIER THIS YEAR BEFORE COLUMBIA HEALTHCARE WAS FORMED THROUGH THE MERGER OF TWO OTHER HOSPITAL COMPANIES COLUMBIA HOSPITAL CORP FORT WORTH TEXAS AND GALEN HEALTH CARE INC LOUISVILLE ALTHOUGH COLUMBIA EVENTUALLY AGREED TO SELL THREE FACILITIES TO SATISFY THE FTC'S CONCERNS THE MERGER WAS COMPLETED ON SEPT 1 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY COLUMBIA SHARES CLOSED DOWN 125 CENTS AT 2925 A SHARE AND HCA SHARES CLOSED DOWN 125 CENTS A SHARE AT 2975 9311180130 931118 POLITICS & POLICY NEW JERSEY GUBERNATORIAL CAMPAIGN SPOTLIGHTS PRACTICE OF DOLING OUT WALKINGAROUND' MONEY BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WE KNOW THE NATURE OF A 50 BILL WHEN IT IS WIDELY EMPLOYED AND THE ECHO THAT IT WILL PRODUCE SAID TAMMANY HALL BOSS WILLIAM M TWEED MORE THAN A CENTURY AGO SO IT WAS WITH BOSS TWEED SO TOO ALLEGEDLY IT IS NOW WITH REPUBLICAN CONSULTANT EDWARD ROLLINS WHO BOASTED TO REPORTERS LAST WEEK THAT HE AND THE CHRISTINE TODD WHITMAN CAMPAIGN IN NEW JERSEY HAD WIDELY EMPLOYED AS MUCH AS 500000 IN WALKINGAROUND MONEY TO SUPPRESS THE BLACK VOTE ON NOV 2 THE ECHOES FROM NEW JERSEY HAVE UNDERCUT MR ROLLINS'S CAREER AND CAST A SHADOW OVER MRS WHITMAN'S NARROW VICTORY OVER DEMOCRATIC GOV JIM FLORIO DEMOCRATIC LAWYERS ACTING UNDER A FEDERAL COURT ORDER WILL TAKE A DEPOSITION HERE TOMORROW FROM MR ROLLINS TO TRY TO FIND OUT WHAT HAPPENED ON ELECTION DAY WAS GOP MONEY REALLY PAID TO BLACK MINISTERS AND TO DEMOCRATIC WORKERS TO GO EASY IN GETTING THEIR FOLLOWERS TO TURN OUT IN BIG NUMBERS FOR THE DEMOCRATIC CANDIDATE AND MR ROLLINS IS EXPECTED TO TESTIFY ON THAT QUESTION PERHAPS AS EARLY AS TODAY BEFORE A FEDERAL GRAND JURY IN NEW JERSEY MR ROLLINS NOW INSISTS IT'S ALL UNTRUE DESPITE HIS INITIAL STATEMENTS HE HAS NO KNOWLEDGE OF AND DID NOT PARTICIPATE IN ANY EFFORTS TO SUPPRESS VOTES OR TO PAY MONEY TO SUPPRESS VOTES SAYS MICHAEL CARVIN AN ATTORNEY FOR MR ROLLINS WHATEVER THE TRUTH BOSS TWEED WOULD HAVE BEEN AMUSED STREET MONEY THAT'S WHAT IT'S CALLED IN PHILADELPHIA OR WALKINGAROUND MONEY THAT'S THE NAME THEY PUT TO IT IN NEW JERSEY IS ALMOST AS OLD AS THE REPUBLIC IN SIMPLEST TERMS IT'S CAMPAIGN CASH PAID OUT TO PRECINCT WORKERS AND VOLUNTEERS TO GET THE FAITHFUL TO THE POLLS ON ELECTION DAY IN RECENT YEARS IT HAS BEEN CALLED SOFT MONEY AND BOTH THE DEMOCRATS AND THE REPUBLICANS RAISE ENORMOUS AMOUNTS OF IT TO FINANCE THEIR GETOUTTHEVOTE AND PARTYBUILDING OPERATIONS BUT WHAT ALLEGEDLY HAPPENED IN THE NEW JERSEY CASE CASH PAYMENTS TO BLACK PREACHERS IS SUCH AN OLDFASHIONED STUNT THAT MOST OBSERVERS WERE STUNNED THAT IT WAS STILL GOING ON AND THE IDEA OF USING SO MUCH CASH TO SUPPRESS TURNOUT RATHER THAN TO INCREASE IT STRUCK MANY AS SOMETHING NEW AND ODD STILL THERE ISN'T MUCH THAT CANNY POLITICIANS HAVEN'T THOUGHT OF OVER THE YEARS BACK IN 1955 FOR EXAMPLE WHEN REPUBLICAN THACHER LONGSTRETH WAS RUNNING FOR MAYOR OF PHILADELPHIA AGAINST DEMOCRAT RICHARDSON DILWORTH MR LONGSTRETH TOURED SOME VOTING PLACES ON ELECTION DAY TO SEE HOW THINGS WERE GOING HE NOTED THAT AT ONE POLLING PLACE SOMETHING WAS MISSING WHERE ARE THE REPUBLICAN POLL WATCHERS HE ASKED A DEMOCRATIC PARTY WORKER OH SAID THE DEMOCRAT THEY'RE DOWN THE STREET WASHING THE CONGRESSMAN'S CAR THE CONGRESSMAN IN THIS CASE WAS THE LATE WILLIAM A BARRETT A DEMOCRAT AND A CLASSIC STREET POLITICIAN WHO CAME HOME FROM WASHINGTON EVERY NIGHT TO HOLD COURT IN HIS OFFICES AT 24TH AND WHARTON STREETS LEFT UNSAID WAS THE POSSIBILITY THAT REPUBLICAN POLL WORKERS HAD BEEN SLIPPED A FEW DOLLARS TO DISAPPEAR WHILE THEIR DEMOCRATIC COUNTERPARTS PERFORMED A LITTLE BALLOTING MAGIC IT WASN'T UNCOMMON IN THOSE DAYS FOR A DEMOCRATIC WORKER TO GO INTO THE VOTING BOOTH WITH A VOTER AND FILL OUT HIS BALLOT THAT WAS EASIER DONE IF THERE WERE NO GOP POLL WATCHERS AROUND TO OBSERVE IT IN PHILADELPHIA AND IN MOST EAST COAST AND MIDWESTERN CITIES PARTY WORKERS WERE GIVEN ENVELOPES CONTAINING THEIR STREET OR WALKINGAROUND MONEY WITH INSTRUCTIONS ON JUST HOW MANY VOTES THEY WERE EXPECTED TO PRODUCE IN CHICAGO THE LATE MAYOR RICHARD DALEY CALLED IN HIS 50 WARD COMMITTEEMEN AND HIS 30 TOWNSHIP COMMITTEEMEN ONE BY ONE JUST BEFORE EACH ELECTION DAY TELLING THEM WHAT HE WANTED THEM TO DO AND THEN PASSING OUT THE BULGING ENVELOPE SAYS DAVID AXELROD A DEMOCRATIC CONSULTANT IN CHICAGO THE COMMITTEEMEN KNEW THAT THE PATRONAGE JOBS AT THEIR DISPOSAL DEPENDED ON HOW SUCCESSFUL THEY WERE IN MEETING MR DALEY'S AFFIRMATIVEACTION PROGRAM I ALWAYS FELT STREET MONEY WAS NOT VERY EFFICIENT SAYS MR AXELROD THERE WAS NO WAY TO QUANTIFY WHERE IT WENT BUT THAT WAS EXACTLY THE POINT NO ONE INVOLVED IN THE PROCESS WANTED TO QUANTIFY IT THESE WORKERS SAID GEORGE WASHINGTON PLUNKITT A TAMMANY HALL DISTRICT LEADER AT THE TURN OF THE CENTURY ARE MOSTLY MEN WHO WANT TO SERVE THEIR COUNTRY BUT CAN'T GET JOBS IN THE CITY DEPARTMENTS ON ACCOUNT OF THE CIVIL SERVICE LAWS THEY DO THE NEXT BEST THING BY KEEPIN' TRACK OF THE VOTERS AND SEEIN' THAT THEY COME TO THE POLLS AND VOTE THE RIGHT WAY SOME OF THESE DESERVIN' CITIZENS HAVE TO MAKE ENOUGH ON REGISTRATION AND ELECTION DAY TO KEEP THEM THE REST OF THE YEAR ISN'T IT RIGHT THEY SHOULD GET A SHARE OF THE MONEY MR PLUNKITT THOUGHT SO HE TOOK HIS SHARE AND DIED A MILLIONAIRE STREET MONEY REMAINS MODERATELY SIGNIFICANT IN CITIES WITH A TRADITION OF MACHINE POLITICS IN 1980 ROBERT STRAUSS PRESIDENT JIMMY CARTER'S CAMPAIGN CHAIRMAN FELT THE IRE OF WARD LEADERS IN PHILADELPHIA WHO FEARED THEY WEREN'T GOING TO GET ANY STREET MONEY THINGS AIN'T SO GREAT ONE OF THEM TOLD MR STRAUSS NO STREET MONEY ANOTHER ONE WARNED AND THE SAMPLE BALLOTS HE PUT ON THE STREET WOULD BE MISSING MR CARTER'S NAME MR STRAUSS WEAKLY PROPOSED THAT THE WARD LEADERS RAISE THE MONEY THEMSELVES THE GROANS FILLED THE ROOM AND HE WOULD COME BACK WHEN THE PRIMARY WAS OVER TO HELP PAY IT BACK I AIN'T TOO BAD AS A FUNDRAISER MR STRAUSS SAID THE WARD LEADERS WERE UNIMPRESSED AND MAYBE THEY HAD THE FINAL SAY MR CARTER LOST THE PENNSYLVANIA PRIMARY BUT WENT ON TO WIN RENOMINATION BY 4522 VOTES USING STREET MONEY TO BUY THE SUPPORT OF BLACK PREACHERS WAS TRADITIONAL FOR YEARS IN MANY PARTS OF THE SOUTH AS WELL AS IN THE BIGMACHINE CITIES NO ONE EVER INVESTED MORE IN BLACK PREACHERS THAN NEW YORK GOV NELSON ROCKEFELLER A REPUBLICAN THE BLACK CHURCH WAS THE ONE TRADITIONAL INSTITUTION THAT BLACKS COULD CALL THEIR OWN NOTE JACK BASS AND WALTER DEVRIES IN THEIR BOOK THE TRANSFORMATION OF SOUTHERN POLITICS THE MINISTERS OFTEN SERVED AS MEDIATORS BETWEEN THEIR BLACK PARISHIONERS AND THE WHITE POWER STRUCTURE AND IF THE BLACK MINISTERS SOMETIMES TOOK CASH FOR GETTING OUT THEIR VOTE MAYBE IT WAS BECAUSE THEY COULD REMEMBER THE TIME WHEN BLACKS COULDN'T VOTE AT ALL IT WAS 60 YEARS AGO NOT A VERY LONG TIME AGO HISTORICALLY THAT THE TEXAS LEGISLATURE PASSED A LAW THAT SAID IN NO EVENT SHALL A NEGRO BE ELIGIBLE TO PARTICIPATE IN A DEMOCRATIC PRIMARY HELD IN THE STATE OF TEXAS AND SHOULD A NEGRO VOTE IN A DEMOCRATIC PRIMARY SUCH BALLOT SHALL BE VOIDED 9311180129 931118 WHO'S NEWS THOMAS A CHAMPION OF THE SPOTTED OWL TO LEAD FOREST SERVICE WASHINGTON PRESIDENT CLINTON NAMED JACK WARD THOMAS AN OREGON WILDLIFE BIOLOGIST WHO HAS WORKED TO SAVE THE NORTHERN SPOTTED OWL TO HEAD THE FOREST SERVICE MR THOMAS RECENTLY LED THE SCIENTIFIC TEAM THAT ADVISED MR CLINTON ON THE OWL WHICH IS A THREATENED SPECIES SINCE 1989 MR THOMAS HAS DIRECTED SEVERAL TEAMS WORKING TO PRESERVE THE NORTHERN SPOTTED OWL WHILE ALSO PROTECTING THE REGION'S OLDGROWTH FORESTS THE 59YEAROLD BIOLOGIST WILL TAKE OVER THE EMBATTLED AGENCY ON DEC 1 HE SUCCEEDS DALE ROBERTSON WHO HELD THE POST FOR SIX YEARS BUT WAS OUSTED FROM THAT JOB LAST MONTH BY AGRICULTURE SECRETARY MIKE ESPY AND GIVEN ANOTHER AGRICULTURE DEPARTMENT POSITION THE SHIFT REFLECTS AN EFFORT BY THE CLINTON ADMINISTRATION TO LEAN TOWARD ENVIRONMENTAL CONCERNS AND AWAY FROM TIMBER INTERESTS MR ROBERTSON WAS CRITICIZED BY ENVIRONMENTAL GROUPS FOR TILTING THE AGENCY TOO FAR TOWARD THE WISHES OF TIMBER PRODUCERS LAST YEAR MR THOMAS WAS NAMED TO HEAD A PANEL THAT IS DEVELOPING OPTIONS FOR MANAGING THE NORTHWEST FOREST ECOSYSTEM YESTERDAY ENVIRONMENTAL GROUPS APPLAUDED THE APPOINTMENT THE NATIONAL WILDLIFE FEDERATION CALLED IT A WELCOME START TOWARD DESPERATELY NEEDED CHANGE BUT TIMBER GROUPS CRITICIZED THE SELECTION MARK REY A VICE PRESIDENT OF THE AMERICAN FOREST AND PAPER ASSOCIATION A TRADE GROUP SAID THE ADMINISTRATION HAS CLEARLY BROKEN WITH TRADITION IN OPTING FOR A POLITICALLY APPOINTED FOREST SERVICE CHIEF INSTEAD OF USING THE CIVIL SERVICE SYSTEM THE SELECTION WAS MADE WITHOUT CONSULTATION WITH RESOURCE DEPENDENT GROUPS MR REY SAID 9311180128 931118 SMALL STOCK FOCUS PROFITTAKING UNDERMINES STOCK PRICES AS NAFTA VOTE PLAYS INFLUENTIAL ROLE BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS HELD THEIR BREATH AHEAD OF LAST NIGHT'S HOUSE OF REPRESENTATIVES VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT AND SOLD SMALLCOMPANY STOCKS PROFITTAKING CLOBBERED PRICES TRADERS SAID THE RUSSELL 2000 INDEX DUMPED 170 POINTS OR 067 TO FALL TO 25373 THE BAROMETER TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES ON NASDAQ THE COMPOSITE INDEX TOPPLED 933 POINTS OR 121 TO 76236 ADVANCING NASDAQ ISSUES LAGGED BEHIND DECLINERS 1256 TO 1834 ON NASDAQ NATIONAL MARKET VOLUME OF 294444000 SHARES UP FROM 261069700 SHARES THROUGH THIS SAME TIME TUESDAY TOTAL VOLUME REGISTERED 359613000 SHARES COMPARED WITH 312690000 SHARES TUESDAY ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS FORECASTED A DOWN DAY TODAY REGARDLESS OF THE HOUSE VOTE THE NASDAQ MARKET HAD BEEN HIGHER LAST WEEK CELEBRATING THE NAFTA VICTORY SO IT'S DISCOUNTED PASSAGE MR GOLDMAN SAID IF WE GET IT PROFITTAKERS COME IN IF IT FAILS WE'LL SELL ON DISAPPOINTMENT AND IT WILL BE QUICKER AND NASTIER A SLEW OF INITIAL PUBLIC OFFERINGS SPICED UP YESTERDAY'S SESSION ACCORDING TO KATHY SMITH AN ANALYST AT RENAISSANCE CAPITAL A GREENWICH CONN INSTITUTIONAL RESEARCH FIRM THE HIGH NUMBER OF NEW ISSUES SHOWS THE MARKET IS VERY HEALTHY THERE'S SOME SPECULATION BUT NOT EVERY DEAL IS TRADING WAY UP SO THAT THERE IS SOME DISCIPLINE AWAY FROM A SPECULATIVE BUBBLE SHE SAID MS SMITH'S FIRM RECOMMENDED TWO OF THE BETTER PERFORMERS FTP SOFTWARE INC AND SAFESKIN CORP FTP JUMPED TO 24 1/2 FROM ITS INITIAL OFFERING PRICE IN THE MORNING OF 19 A SHARE THE COMPANY SAID IT WILL USE PROCEEDS FOR WORKING CAPITAL AND OTHER CORPORATE PURPOSES SAFESKIN MEANWHILE FINISHED AT 13 UP FROM ITS DEBUT PRICE OF 12 A SHARE EARLIER THE BOCA RATON FLA COMPANY MAKES HYPOALLERGENIC DISPOSABLE LATEX GLOVES ANOTHER NEW ISSUE LANDAIR SERVICES INC A GREENEVILLE TENN TRANSPORTATION COMPANY CLIMBED TO 17 1/4 FROM ITS INITIAL PRICE OF 14 A SHARE BUT ALLIED CAPITAL CORP SLUMPED TO 12 3/4 AFTER 25 MILLION SHARES WERE PRICED AT 15 A SHARE THIS MORNING THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ELSEWHERE GOODY'S FAMILY CLOTHING INC DROPPED 1 3/4 TO 13 1/4 LATE YESTERDAY THE KNOXVILLE TENN COMPANY SAID ITS BOARD'S AUDIT COMMITTEE HAS BEEN CONDUCTING AN INQUIRY FOCUSED PRIMARILY ON ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT GOODFRIEND THE AUDIT FOUND ACCOUNTING IRREGULARITIES RELATED TO MR GOODFRIEND'S PERSONAL EXPENSES ECCS INC OF TINTON FALLS NJ PLUNGED 2 7/8 TO 4 3/8 THE PROVIDER OF SYSTEMSINTEGRATION SOLUTIONS SAID IT DOESN'T EXPECT TO MEET 1993 ESTIMATES OF 57 MILLION IN REVENUE AND 38 MILLION IN NET INCOME GRAND CASINOS INC OF MINNEAPOLIS FELL 1 3/8 TO 21 5/8 IT SAID IT HAS DELAYED THE OPENING DATE OF THE GRAND CASINO BILOXI IN MISSISSIPPI TO JAN 17 FROM DEC 27 MOLTEN METAL TECHNOLOGY INC GOT A 1 5/8 BOOST TO 26 1/4 THE WALTHAM MASS CONCERN SAID IT SIGNED A LETTER OF INTENT TO BUILD OWN AND OPERATE A RECYCLING SYSTEM TO PROCESS HAZARDOUS WASTES COLLECTED AND DELIVERED BY CLEAN HARBORS INC SECURITY SAVINGS BANK JACKSON MISS SURGED 12 1/4 OR 70 TO 29 3/4 IT SAID IT EXECUTED A DEFINITIVE AGREEMENT PROVIDING FOR ITS ACQUISITION BY FIRST SECURITY SAVINGS BANK OF BLOOMFIELD HILLS MICH INACOM CORP SOARED 2 TO 16 3/4 AFTER POSITIVE COMMENTS BY MABON SECURITIES AND BURNS PAULI & CO MABON ANALYST KEVIN MCCARTHY RAISED HIS INVESTMENT RATING TO BUY FROM NEUTRAL BURNS PAULI SAID IN A REPORT THAT IT STRONGLY ENCOURAGES INVESTORS TO TAKE ADVANTAGE OF THE RECENT PRICE WEAKNESS AT THE OMAHA NEB MARKETER AND DISTRIBUTOR INFORMATION TECHNOLOGY PRODUCTS AND SERVICES ON THE BIG BOARD OREGON STEEL MILLS INC ADDED 1 5/8 TO 23 JENSEN SECURITIES UPGRADED THE COMPANY'S RATING TO BUY FROM ACCUMULATE IN ADDITION THE MILL OPERATOR OF PORTLAND ORE SAID ITS NAPA PIPE CORP SUBSIDIARY RECEIVED A CONTRACT WORTH ABOUT 872 MILLION TO SUPPLY 120000 METRIC TONS OF STEEL PIPE TO THE PETROLEUM AUTHORITY OF THAILAND NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 52 WHILE 43 ISSUES HIT NEW LOWS 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 9311180127 931118 WHEN THE LITTLE GUYS SAY CHEESE YOU CAN BE SURE OF TOOTHY SMILES BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA'S CASE AGAINST THE SHARPTOOTHED DOMESTIC FERRET IS ABOUT TO BE TRIED IN CAMERA WELL CAMERAS ACTUALLY FERRETS ANONYMOUS A 900MEMBER ORGANIZATION IN CALIFORNIA IS HOLDING A CUTE FERRET PICTURE CONTEST SEEKING POSITIVE PRINTS TO COUNTER THE WEASELLIKE CRITTER'S NEGATIVE IMAGE THE GROUP IS WORKING TO LEGALIZE OWNERSHIP OF THE PET IN THE STATE THE PHOTOS MUST BE SUBMITTED BY FEB 15 AND THE GROUP PLANS TO PUBLISH THE WINNING ENTRY IN THE MARCH 1994 ISSUE OF FERRET LEGALIZATION UPDATE THE ORGANIZATION'S MONTHLY NEWSLETTER THE CONTEST RULES PERMIT ANONYMOUS ENTRIES THE GROUP SAYS IT WILL ASSUME THAT ALL PETFERRET PHOTOS SUBMITTED WERE TAKEN OUTSIDE OF CALIFORNIA SINCE ANY OWNER CAUGHT WITH ONE OF THE ANIMALS COULD FACE FINES AS WELL AS A JAIL TERM IT'S COMPLETELY ILLEGAL TO OWN A FERRET IN CALIFORNIA SAYS FERRETS ANONYMOUS FOUNDER PAT WRIGHT HE ASSERTS THAT OWNERSHIP OF THE CREATURES IS LEGAL IN JUST ABOUT EVERY OTHER STATE IN THE COUNTRY MR WRIGHT CONTENDS THAT STATE PERMISSION TO OWN FERRETS IS HANDED OUT TOO SPARINGLY AND THAT ONLY ZOOS AND AN OCCASIONAL ANIMAL SHELTER HAVE BEEN ISSUED THE REQUIRED PERMITS HE COMPLAINS THAT FERRETS ANONYMOUS COULDN'T EVEN GET AN EDUCATIONAL PERMIT TO HAVE ONE IN CALIFORNIA SAYS DAN ANDREEN A WARDEN OF THE DEPARTMENT OF FISH AND GAME FERRETS ARE CONSIDERED A MENACE TO NATIVE WILDLIFE AND A DETRIMENTAL SPECIES TO THE AGRICULTURAL ENVIRONMENT ONE ANONYMOUS CALIFORNIA OWNER OF THREE OF THE ILLEGAL PETS SAYS I TRUST THEM OVER A CAT OR A DOG ANY DAY BUT SOMETIMES THEY PLAY HARD VERY HARD AND SOMEONE WINDS UP IN THE HOSPITAL WITH A BITE THE PET OWNER ADDS HOSPITAL RECORDS ON ANIMALBITE STATISTICS SHOW FERRETS TO BE ONE OF THE SAFEST PETS ONLY THE GUINEA PIG BITES LESS MR ANDREEN REJECTS SUCH CLAIMS ASSERTING THAT ONE REASON FERRETS MAY HAVE THE FEWEST BITE STATISTICS IS THAT THEY'RE ILLEGAL ANIMALS AND THEIR OWNERS MIGHT BE RELUCTANT TO REPORT BITES THE FERRET GROUP SAYS IT WANTS CALIFORNIA TO BE ON RECORD AS RECOGNIZING THE DOMESTIC FERRET AS A DOMESTIC ANIMAL INSTEAD OF GROUPING IT WITH THE BLACKFOOTED FERRET CONSIDERED A WILD ANIMAL ALL FERRETS ARE LUMPED TOGETHER UNDER FERRETS COMPLAINS MR WRIGHT THAT'S LIKE LUMPING TOY POODLES AND WOLVES AND CALLING THEM BOTH CANINES 9311180126 931118 MONEYFUND YIELDS WERE LITTLE CHANGED DURING LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS WERE FLAT TO SLIGHTLY HIGHER FOR THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS ROSE TO 271 FROM 269 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 267 FROM 265 WHILE THE 30DAY SIMPLE YIELD REMAINED AT 265 THE 30DAY COMPOUND YIELD INCHED UP TO 269 FROM 268 ASSETS OF 624 TAXABLE FUNDS GREW BY 647 BILLION TO 48457 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 309 BILLION OF THE INFLOW WHILE INDIVIDUAL INVESTORS PUT IN AN ADDITIONAL 338 BILLION THE AVERAGE MATURITY OF TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY TWO DAYS TO 61 DAYS ASSETS OF 330 TAXEXEMPT FUNDS DECREASED BY 4067 MILLION TO 10574 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 67 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9311180125 931118 CREDIT RATINGS CYPRUS MINERALS DEBT IS DOWNGRADED BY S&P FOLLOWING ACQUISITION NEW YORK STANDARD & POOR'S CORP DOWNGRADED CYPRUS MINERALS CO'S DEBT IN THE WAKE OF THE COMPANY'S ACQUISITION THIS WEEK OF AMAX INC THE RATING AGENCY'S MOVE AFFECTS 400 MILLION IN SENIOR DEBT LOWERING ITS RATING TO TRIPLEBMINUS FROM TRIPLEB IN THE ACQUISITION CYPRUS TOOK ON 12 BILLION OF AMAX DEBT S&P LEFT ITS RATING ON THE AMAX DEBT UNCHANGED AT TRIPLEBMINUS CYPRUS IS NOW CALLED CYPRUS AMAX MINERALS CO S&P CITED THE COMBINED COMPANY'S AGGRESSIVE DEBT LOAD IN THE DOWNGRADING THE AGENCY ALSO SAID THE COMPANY'S OUTLOOK IS NEGATIVE CITING ITS DEVELOPMENT OF TWO MAJOR COPPER PROJECTS IN LATIN AMERICA GERALD MALYS CHIEF FINANCIAL OFFICER OF CYPRUS SAID HE WAS SURPRISED BY S&P'S NEGATIVE TONE IT APPEARS THAT S&P IS AFRAID WE'RE GOING TO DO DUMB THINGS HE SAID RATINGS AGENCIES GET NERVOUS WHEN COMPANIES TRY TO EXPAND MR MALYS SAID THE KEYS TO REMOVING THE NEGATIVE OUTLOOK WILL BE SELLING SOME ASSETS THAT ARE ON THE BLOCK INCLUDING AMAX'S OIL AND GAS PROPERTIES AND CYPRUS'S IRONORE MINE AND REALIZING COST SAVINGS THAT THE COMPANY SAID IT EXPECTS FROM COMBINING SOME AMAX AND CYPRUS OPERATIONS 9311180124 931118 IRS SEEKS TO INCREASE ELECTRONICTAX FILING FOR BUSINESS RETURNS SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE INTENDS TO CONCENTRATE ON BUSINESSES IN ITS PUSH TO GREATLY INCREASE THE USE OF ELECTRONICALLY FILED TAX RETURNS IRS COMMISSIONER MARGARET RICHARDSON SAID TESTIFYING BEFORE A HOUSE GOVERNMENT OPERATIONS SUBCOMMITTEE MS RICHARDSON AND OTHER AGENCY OFFICIALS SAID ELECTRONICTAX FILING IS AN ESSENTIAL COMPONENT OF THE IRS OF THE FUTURE THE AGENCY PLANS TO INCREASE THE VOLUME OF ELECTRONICALLY FILED TAX RETURNS TO 81 MILLION BY THE YEAR 2000 FROM ROUGHLY 13 MILLION NOW MS RICHARDSON IDENTIFIED THE BUSINESS COMMUNITY AS THE MOST FERTILE GROUND INITIALLY FOR SHIFTING TO ELECTRONIC FILING THE IRS COMMISSIONER SAID THE AGENCY MIGHT HAVE THE MOST SUCCESS IN IMPOSING AN ELECTRONIC FILING REQUIREMENT ON BUSINESSES BUT THAT MANDATING ELECTRONIC FILING BY INDIVIDUAL TAXPAYERS MIGHT BE MORE DIFFICULT THE GENERAL ACCOUNTING OFFICE SAID LEGISLATIVE ISSUES SHOULD BE RESOLVED NOW IF THE IRS HOPES TO REALIZE ITS GOAL OF RECEIVING OVER 80 MILLION RETURNS ELECTRONICALLY JUST EIGHT YEARS FROM NOW THE GAO RECOMMENDED THAT THE IRS ENCOURAGE EMPLOYERS AND FINANCIAL INSTITUTIONS TO OFFER ELECTRONIC FILING TO EMPLOYEES AND CUSTOMERS AND URGED THE AGENCY TO CONSIDER LETTING TAXPAYERS FILE RETURNS THROUGH THEIR PERSONAL COMPUTERS IT SAID ELECTRONIC FILING CAN CUT IRS COSTS AND ALLOW RETURNS AND REFUNDS TO BE PROCESSED FASTER AND MORE ACCURATELY THE CONGRESSIONAL WATCHDOG AGENCY ALSO SAID IT IS ESSENTIAL THAT THE IRS FIND WAYS TO DEAL EFFECTIVELY WITH ELECTRONIC FILING FRAUD ASSISTANT TREASURY SECRETARY LESLIE SAMUELS AND THE GAO SAID THAT PENDING LEGISLATION TO PERMIT PAYMENT OF TAXES BY CREDIT CARD WOULD ADVANCE THE ELECTRONIC FILING INITIATIVE BUT THE GAO SAID THAT EVEN IF SUCH LEGISLATION PASSES THE IRS MUST RESOLVE SOME IMPORTANT ISSUES FOR VISA AND MASTERCARD THE TREATMENT OF FEDERAL TAXES PAID WITH A CREDIT CARD IN BANKRUPTCY PROCEEDINGS IS THE SINGLE MOST IMPORTANT UNRESOLVED ISSUE THE GAO SAID 9311180123 931118 WHO'S NEWS BARRA INC BARRA INC BERKELEY CALIF JAMES D KIRSNER 50 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS INVESTMENT CONSULTING CONCERN HE SUCCEEDS RONALD J LANSTEIN 59 WHO WAS NAMED VICE CHAIRMAN OF BARRA'S BOARD THE COMPANY SAID MR KIRSNER'S PREVIOUS POSITION AS SENIOR VICE PRESIDENT FINANCE WON'T BE FILLED 9311180122 931118 WHO'S NEWS LUCAS INDUSTRIES PLC LUCAS INDUSTRIES PLC LONDON GEORGE SIMPSON 51 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS INTERNATIONAL AEROSPACE AND AUTOMOTIVE CONCERN EFFECTIVE MAY 1 1994 MR SIMPSON CURRENTLY DEPUTY CHIEF EXECUTIVE OF BRITISH AEROSPACE PLC WILL SUCCEED SIR ANTHONY GILL WHO WILL BECOME A NONEXECUTIVE DIRECTOR 9311180121 931118 FORD MOTOR REPORTEDLY IS TRYING TO SELL FIRST NATIONWIDE FINANCIAL THRIFT UNIT BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO IS TRYING TO SELL ITS STRUGGLING FIRST NATIONWIDE FINANCIAL CORP UNIT AFTER SPENDING 493 MILLION TO ACQUIRE THE THRIFT IN 1985 AND PUMPING IN ANOTHER 12 BILLION TO SHORE IT UP JP MORGAN & CO HAS BEEN LOOKING FOR A BUYER FOR THE SAN FRANCISCOBASED THRIFT FOR THE PAST 10 DAYS BUT SOME BANKERS ARE LEERY OF ITS 1 BILLION IN NONPERFORMING LOANS AND THE FACT THAT IT DOESN'T HAVE A FIRM GEOGRAPHIC BASE THE THRIFT'S BRANCHES ARE SPREAD ACROSS EIGHT STATES ON BOTH COASTS AND IN THE MIDWEST THEY DON'T HAVE THE KIND OF FRANCHISE THAT YOU TYPICALLY HEAR MAJOR BANKERS TALKING RHAPSODICALLY ABOUT SAYS ONE BANKER FORD THE THRIFT AND J P MORGAN ALL DECLINED TO COMMENT BUT PEOPLE FAMILIAR WITH THE SITUATION SAID THE THRIFT WAS FOR SALE FORD'S INTEREST IN SELLING THE UNIT WAS FIRST REPORTED BY BUSINESS WEEK FORD BOUGHT THE THRIFT IN 1985 AS PART OF AN EFFORT TO DIVERSIFY INTO FINANCIAL SERVICES AND COUNTERBALANCE THE CYCLICAL NATURE OF THE AUTO BUSINESS BUT THE THRIFT TOOK A TUMBLE JUST AS THE AUTO BUSINESS SAW ITS MOST RECENT DOWNTURN AND HAS BEEN A CONSTANT DRAG ON FORD'S EARNINGS THE UNIT HAD A LOSS OF 42 MILLION IN THE FIRST NINE MONTHS OF 1993 AFTER PRODUCING LOSSES OF 73 MILLION AND 72 MILLION IN 1991 AND 1992 RESPECTIVELY FIRST NATIONWIDE'S PROBLEMS ARE AKIN TO THOSE THAT SHUTTERED HUNDREDS OF THRIFTS IT IS STILL SUFFERING FROM BIG BETS MADE ON RISKY REAL ESTATE AND RAPID EXPANSION AND THERE HAVE BEEN OTHER PROBLEMS MORTGAGE CUSTOMERS ACCUSED THE THRIFT OF SYSTEMATICALLY MISCALCULATING INTEREST RATES ON ADJUSTABLE RATE LOANS IN TWO LAWSUITS WHICH WERE SETTLED ALMOST A YEAR AGO IN AN EFFORT TO STEM THE LOSSES FIRST FINANCIAL HAS DROPPED MORE THAN 4000 EMPLOYEES FROM ITS PAYROLL AND IS TRYING TO CONSOLIDATE ITS OPERATIONS IT SOLD ITS 25 COLORADO BRANCHES TO TWO BANKS THERE EARLIER THIS YEAR AND IS IN THE PROCESS OF SELLING ITS ONLY ARIZONA BRANCH IN 1988 THE THRIFT HAD 504 RETAIL BRANCHES IN 15 STATES IT NOW HAS 182 BRANCHES IN EIGHT STATES INCLUDING THE ARIZONA BRANCH PARTLY AS A RESULT OF THE CONSOLIDATIONS THE BANK'S OPERATING COSTS HAVE DROPPED TO 87 MILLION IN 1993'S THIRD QUARTER FROM 108 MILLION IN THE YEARAGOQUARTER DURING THE SAME YEAR THE COMPANY REDUCED ITS BAD ASSETS FROM 13 BILLION OR 67 OF 195 BILLION IN ASSETS TO 1 BILLION OR 62 OF 161 BILLION IN ASSETS AND IT INCREASED ITS CORE CAPITAL PEOPLE FAMILIAR WITH THE SITUATION SAY FORD MAY WELL BE FORCED TO RETAIN BAD LOANS AND TO SELL THE UNIT PIECEMEAL TO SEVERAL DIFFERENT BANKS IN THE STATES WHERE FIRST NATIONWIDE OPERATES BUT DESPITE FIRST NATIONWIDE'S LOSSES FORD DOESN'T HAVE TO SELL THE THRIFT FORD'S FINANCIAL SERVICE GROUP WHICH INCLUDES FIRST NATIONWIDE EARNED 1 BILLION IN EARNINGS LAST YEAR THIS WON'T BE A FIRE SALE SAID A FIRST NATIONWIDE CONSULTANT SEPARATELY FORD MOTOR CREDIT CO ANOTHER FORD UNIT FILED FOR A SHELF OFFERING OF UP TO 3 BILLION OF DEBT SECURITIES IN THE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION FORD MOTOR CREDIT SAID THE DEBT WILL BE MEDIUMTERM NOTES DUE NINE MONTHS TO 30 YEARS FROM THE ISSUE DATE OR THE EQUIVALENT IN FOREIGN OR COMPOSITE CURRENCIES THE UNDERWRITERS FOR THE OFFERING ARE GOLDMAN SACHS & CO DAIWA SECURITIES AMERICA INC MERRILL LYNCH & CO AND NOMURA SECURITIES INTERNATIONAL INC STEVEN LIPIN IN NEW YORK AND CHARLES MCCOY IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9311180120 931118 FINANCING BUSINESS MAINSTREAM DATA INC MAINSTREAM DATA INC SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION AN INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES AT 9 TO 11 EACH THE SALT LAKE CITYBASED INFORMATION CONCERN WILL SELL 15 MILLION SHARES AND STOCKHOLDERS WILL SELL THE REST PIPER JAFFRAY INC WILL MANAGE THE OFFERING 9311180119 931118 MCI SIGNS ACCORDS WITH 4 FIRMS LAB ABOUT POCKET PHONES WASHINGTON MCI COMMUNICATIONS CORP SAID IT SIGNED DEFINITIVE AGREEMENTS WITH FOUR WIRELESSTECHNOLOGY COMPANIES AND A RESEARCH LABORATORY AIMED AT HASTENING MCI'S PLAN TO SELL WIRELESS SERVICES ON POCKET PHONES MCI SAID IT SIGNED AGREEMENTS WITH NORTHERN TELECOM LTD ERICSSON GE MOBILE COMMUNICATIONS NOKIA TELULAR CORP AND MIT LINCOLN LABORATORY TO ENABLE THE POCKETPHONE TECHNOLOGY KNOWN AS PERSONAL COMMUNICATIONS SYSTEMS TO BE DEPLOYED MORE QUICKLY THE GOVERNMENT IS EXPECTED TO AUCTION LICENSES FOR PCS SERVICES NEXT YEAR THE COMPANIES ALONG WITH MCI PLAN TO MAKE THE PHONES COMPATIBLE WITH EUROPE'S STANDARD FOR DIGITAL CELLULAR TECHNOLOGY KNOWN AS GLOBAL SYSTEM FOR MOBILE TELECOMMUNICATIONS THE STANDARD IS EXPECTED TO BE USED WIDELY BY 62 TELECOMMUNICATIONS COMPANIES IN 44 COUNTRIES AS A RESULT A USER COULD EMPLOY A POCKET PHONE TO TRANSMIT VOICE OR DATA COMMUNICATIONS FROM ANYWHERE IN THE US MCI SAID THE LONGDISTANCE CARRIER PLANS TO BEGIN DEPLOYING A COASTTOCOAST US WIRELESS NETWORK FOR THE POCKET PHONES IN 1995 HOWEVER BY INSERTING A SMART CARD INTO THE POCKET PHONE THE DEVICE CAN BE USED OVERSEAS AS WELL MCI SAID UNDER THE AGREEMENTS MCI WILL ALSO CREATE A LABORATORY TO TEST THE VARIOUS TECHNOLOGIES RELATED TO ITS PROPOSED PCS NETWORK IN RICHARDSON TEXAS ERICSSON GE MOBILE COMMUNICATIONS IS A JOINT VENTURE BETWEEN GENERAL ELECTRIC CO AND LM ERICSSON SA NOKIA IS A US UNIT OF NOKIA CORP OF FINLAND TELULAR DEVELOPS TELECOMMUNICATIONS TECHNOLOGY AND LINCOLN LABORATORY IS OPERATED BY THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY 9311180118 931118 DIVIDEND NEWS FIGGIE INTERNATIONAL INC FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO CITING ITS THIRDQUARTER LOSS AND A WEAK BUSINESS ENVIRONMENT CUT ITS QUARTERLY DIVIDEND ON CLASS A AND CLASS B COMMON STOCK TO SIX CENTS A SHARE FROM 125 CENTS A SHARE THE NEW DIVIDEND IS PAYABLE DEC 15 TO STOCK OF RECORD DEC 1 IN TRADING ON THE NASDAQ STOCK MARKET SHARES OF THE MANUFACTURER OF INDUSTRIAL AND CONSUMER PRODUCTS CLOSED AT 1375 DOWN 25 CENTS FIGGIE'S CHAIRMAN AND CHIEF EXECUTIVE HARRY E FIGGIE JR SAID IN A STATEMENT THAT THE DIVIDEND REDUCTION WAS A PRUDENT FINANCIAL MOVE 9311180117 931118 REVIEW & OUTLOOK EDITORIAL THE BASICS DEBATE THERE'S NO SUBJECT SURER TO AROUSE PASSION THAN FAMILY VALUES WHEN YOU START TALKING ABOUT THE PROBLEMS ASSOCIATED WITH VARIOUS LIVING ARRANGEMENTS MANY PEOPLE TAKE IT AS A MORALISTIC ATTACK ON THEIR OWN LIFESTYLE OR ON THE LIFESTYLE OF OTHERS WHO ARE MORE TO BE HELPED THAN CONDEMNED WE SUPPOSE IT SHOULDN'T BE TOO SURPRISING THAT THIS LIVELIEST OF US DEBATES HAS NOW WASHED ASHORE IN ENGLAND WHERE JOHN MAJOR COULD RECENTLY BE SEEN SKITTERING AWAY FROM THE SENSITIVE SUBJECT OF SINGLE MOTHERS SOME OF THE ARGUMENTS MAJORITES USED FOR DROPPING THE SUBJECT MAKE SOME SENSE FOR INSTANCE THAT GOVERNMENT REALLY CAN DO LITTLE TO GET PEOPLE TO BEHAVE BETTER AND CARE FOR THE CHILDREN THEY HELP CONCEIVE BUT DOING NOTHING THE PREFERRED APPROACH OF THE PAST QUARTER CENTURY NO LONGER LOOKS VIABLE TO US IN AN ARTICLE THAT APPEARED ON THIS PAGE RECENTLY CHARLES MURRAY DESCRIBED RATES OF ILLEGITIMATE BIRTHS AMONG WHITE AND BLACK MOTHERS THAT ARE SIMPLY ASTOUNDING IN THE SUDDENNESS WITH WHICH THEY'VE APPEARED IN ENGLAND THE NUMBER OF LONE PARENTS HAS RISEN BY MORE THAN HALF SINCE 1979 SO HOW DID WE ARRIVE AT THIS PASS THE CONVENTIONAL WISDOM THAT SWEPT OPINION CIRCLES IN THE 1970S WAS THAT CHILDREN WOULD BOUNCE BACK FROM DIVORCE THAT DIVERSITY OF FAMILY STRUCTURES WAS A NATURAL PART OF PLURALISM THAT DIVORCE REPRESENTED LIBERATION FROM STULTIFYING MARRIAGES NOW MOST SOCIAL SCIENTISTS HAVE CONCLUDED THAT FAMILY BREAKDOWN IS HARMFUL FOR CHILDREN AND THE EFFECTS LONGLASTING THESE SORTS OF FINDINGS CONSIST OF GENERALIZATIONS OBVIOUSLY THERE ARE MANY CASES IN WHICH DIVORCE DOES LIBERATE A CHILD FROM THE ABUSE AND DEEP RANCOR OF AN UNHAPPY MARRIAGE BUT THE AGGREGATE US EVIDENCE IS CLEAR A TRAWL THROUGH THE RESEARCH DATA COMPILED BY SCHOLARS OF LEFT RIGHT AND CENTER YIELDS HORRIFYING FINDINGS YOUNG ADULTS FROM DISRUPTED FAMILIES ARE MORE THAN TWICE AS LIKELY AS ADULTS FROM INTACT FAMILIES TO HAVE SOUGHT PSYCHIATRIC HELP THEY ARE TWICE AS LIKELY TO DROP OUT OF HIGH SCHOOL ONLY ONE CHILD IN SIX OF AMERICAN CHILDREN FROM DIVORCED FAMILIES SEES HIS OR HER FATHER AS OFTEN AS ONCE A WEEK CLOSE TO HALF HAD NOT SEEN THEIR FATHER WITHIN THE PAST YEAR AS ONE RESEARCHER PUT IT THE CHILD OF DIVORCE FACES MANY ADDITIONAL PSYCHOLOGICAL BURDENS IN ADDITION TO THE NORMATIVE TASKS OF GROWING UP COMMON SENSE REEMERGES ON A MATERIAL LEVEL THE INCOME OF MOTHERS AND CHILDREN DECLINES BY AN AVERAGE OF 30 FOLLOWING DIVORCE WHILE THE INCOME OF FATHERS RISES BY AN AVERAGE OF 10 TO 15 ALMOST HALF OF SINGLE MOTHERS REMAIN ON THE WELFARE ROLLS FOR OVER 10 YEARS AND THE CHILDREN OF THOSE WOMEN ARE FAR MORE LIKELY TO REMAIN ON WELFARE FOR THEIR ADULT LIVES SOME 70 OF JUVENILE CRIMINALS COME FROM FATHERLESS HOMES THE CORRELATION BETWEEN FAMILY MAKEUP AND POOR DISCIPLINE IN SCHOOL IS SO STRONG THAT IT VIRTUALLY ERASES ANY LINK TO INCOME RACE OR OTHER FACTORS JUST LAST WEEK IN AN ANALYSIS OF THE SENATE CRIME BILL THE NEW YORK TIMES ARRIVED AT THE OBSERVATION ON ITS FRONT PAGE THAT MOST OTHER EXPERTS AGREE THAT THE BREAKDOWN OF THE AMERICAN FAMILY AND THE RISE IN THE RATES OF ILLEGITIMATE BIRTHS WILL ALMOST CERTAINLY TRANSLATE INTO MORE GANG MISCHIEF MURDERS RAPES AND ASSAULTS NO MATTER WHAT CONGRESS DOES IN AN ARTICLE EARLIER THIS YEAR THE WRITER BARBARA DAFOE WHITEHEAD NOTED THAT BEFORE THE 1970S IT WAS THOUGHT THAT MARRIED PEOPLE SHOULD STAY TOGETHER FOR THE SAKE OF THE KIDS THAT WAS DISPLACED BY A BELIEF CAPTURED IN A POPULAR BOOK OF THE 1970S THE PARENTS WHO TAKE CARE OF THEMSELVES WILL BEST BE ABLE TO TAKE CARE OF THEIR CHILDREN ONCE CHILDCENTERED MANY ADULTS DURING THESE YEARS BECAME MORE SELFCENTERED IT SHOULD BE POSSIBLE TO CHANGE THE WAY PEOPLE THINK ABOUT THE SANCTITY OF BIOLOGICAL FAMILIES YES THIS INVOLVES MAKING NORMATIVE JUDGMENTS AND SETTING SOCIAL NORMS PERHAPS IN PRACTICE GOVERNMENT CAN ONLY REMOVE THE PERVERSE INCENTIVES THAT ENCOURAGE FAMILY BREAKUP BUT VERBALLY POLITICAL LEADERS SHOULD BE AMONG THOSE WHO CONFRONT THIS ISSUE HEAD ON 9311180116 931118 WHO'S NEWS MEMBERS SERVICE CORP MEMBERS SERVICE CORP WINTER PARK FLA CLAUDE R KIRK FORMER GOVERNOR OF FLORIDA WAS NAMED CHAIRMAN OF THIS TELECOMMUNICATIONS HOLDING COMPANY MR KIRK 67 YEARS OLD SUCCEEDS ARTHUR S FEHER JR 45 THE COMPANY'S FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER LESLIE S GREYLING 41 PRESIDENT OF MEMBERS WILL ASSUME THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER ALSO ANDREW TOTTENHAM AND JORGE GALVES WERE ELECTED DIRECTORS MR TOTTENHAM MANAGING DIRECTOR OF TOTTENHAM & CO OF LONDON A CASINO CONSULTING FIRM SUCCEEDS GENE P FEHER MR GALVES CHIEF FINANCIAL OFFICER OF SPORTSWORLD 2000 INC FILLS A VACANCY IN AUGUST MEMBERS ANNOUNCED IT WAS MOVING OUT OF TELECOMMUNICATIONS AND INTO THE CASINO INDUSTRY 9311180115 931118 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK THIS FINANCIAL AND TRAVEL SERVICES CONCERN NAMED JOHN I WILLIAMS JR 39 YEARS OLD SENIOR VICE PRESIDENT AND GENERAL MANAGER OF CONSUMER TRAVEL NETWORK IN THE US AT ITS TRAVEL RELATED SERVICES UNIT HE SUCCEEDS STEVEN W ALESIO 39 WHO WAS NAMED EXECUTIVE VICE PRESIDENT OF THE SMALL BUSINESS SERVICES DIVISION OF THE TRAVEL RELATED SERVICES UNIT MR WILLIAMS WAS PREVIOUSLY SENIOR VICE PRESIDENT OF MARKETING INFORMATION SERVICES 9311180114 931118 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CALIFORNIA MICROWAVE INC AN OFFERING OF 50 MILLION OF 10YEAR CONVERTIBLE SUBORDINATED NOTES VIA BEAR STEARNS & CO AND OPPENHEIMER & CO HOSPITALITY FRANCHISE SYSTEMS INC AN OFFERING OF 200 MILLION OF SENIOR NOTES DUE 1998 VIA MERRILL LYNCH & CO CHEMICAL SECURITIES INC MONTGOMERY SECURITIES SALOMON BROTHERS INC AND SMITH BARNEY SHEARSON INC IT NETWORK INC AN OFFERING OF UP TO 2683333 COMMON SHARES VIA BEAR STEARNS & CO LINCOLN SNACKS CO AN OFFERING OF 2150000 COMMON SHARES VIA ALLEN & CO INC MARINER HEALTH GROUP INC AN OFFERING OF 33 MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC ALEX BROWN & SONS INC AND COWEN & CO NAVARRE CORP AN OFFERING OF 1250000 COMMON SHARES VIA HAMILTON INVESTMENTS INC AND CRAIGHALLUM 9311180113 931118 WORLD MARKETS TOKYO PRICES FALL BROADLY BUT EUROPE GAINS ON POSITIVE DATA AND OPTIMISM FOR RATE CUTS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES FELL BROADLY WEDNESDAY IN LIGHT TRADING AMID INDEXLINKED ARBITRAGE SELLING BUT LONDON STOCKS POSTED SOLID GAINS AS GOOD ECONOMIC DATA IN BRITAIN ADDED TO POSITIVE SIGNALS FROM ABROAD THAT INCREASED PROSPECTS FOR INTERESTRATE REDUCTIONS PARIS EQUITIES RALLIED 15 ON THE CONVICTION THAT EUROPEAN RATES ARE COMING DOWN SOON THE FRANKFURT EXCHANGE WAS CLOSED FOR A HOLIDAY MEXICAN SHARES FELL IN A CORRECTION FOLLOWING FIVE RECORDSETTING SESSIONS AHEAD OF THE US CONGRESSIONAL VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11105 DOWN 030 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS OILFIELD EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10909 UP 348 OR 33 WITH BAKER HUGHES OF THE US POSTING A 97 GAIN IN ITS LOCAL CURRENCY HOUSEHOLD PRODUCTS/NONDURABLE STOCKS TRAILED AT 11253 DOWN 222 OR 19 WITH PROCTER & GAMBLE OF THE US SLIDING 29 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 17151 POINTS TUESDAY LOST 13741 TO 1810871 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN FROM 2648 MILLION SHARES A DAY EARLIER LOSING ISSUES TROUNCED GAINING ISSUES 624320 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 969 POINTS TUESDAY FELL 852 TO 154082 DESPITE SOME POTENTIALLY POSITIVE DEVELOPMENTS THE MARKET LACKED CONFIDENCE FOR GAINS AS SEVERAL HURDLES LAY AHEAD FEARS EBBED ABOUT A SNAP JAPANESE ELECTION WHICH WOULD STYMIE ANY FURTHER STIMULUS TO THE MORIBUND ECONOMY A POLITICAL REFORM BILL WHICH A PARLIAMENTARY COMMITTEE APPROVED THE PREVIOUS DAY WAS TO GO TO VOTES IN THE LOWER HOUSE THURSDAY AND THE UPPER HOUSE BEFORE YEAR END THE COALITION GOVERNMENT WAS BELIEVED TO HAVE ENOUGH VOTES FOR PASSAGE AND A GOVERNMENT ADVISORY PANEL ON INCOMETAX CUTS WHICH COULD GIVE PESSIMISTIC STOCK INVESTORS SOME ENCOURAGEMENT WAS TO MAKE ITS RECOMMENDATION FRIDAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 225 POINTS TO 31200 THE FT 30STOCK INDEX CLIMBED 159 POINTS TO 23638 VOLUME WAS 6622 MILLION SHARES COMPARED WITH 6548 MILLION SHARES A DAY EARLIER PRICES ROSE ACROSS THE BOARD THE RALLY IN NEW YORK STOCKS TO A RECORD THE PREVIOUS DAY HELPED SET THE STAGE FOR A STRONG OPENING IN LONDON AND AN INTERESTRATE CUT IN BELGIUM ADDED TO THE POSITIVE SENTIMENT WHICH SWELLED ON FAVORABLE BRITISH ECONOMIC DATA FOR OCTOBER INFLATION ROSE FAR LESS THAN EXPECTED AND RETAIL SALES INCREASED SLIGHTLY FOR THE SECOND CONSECUTIVE MONTH THE MARKET INTERPRETED THE DEVELOPMENTS AS A WINDOW FOR BRITAIN TO CUT ITS LENDING RATES WITHOUT RISKING AN ECONOMIC PUSH THAT COULD STOKE INFLATION AND THAT TURNED THE FOCUS TO THE GOOD NEWS THAT LOWER RATES WOULD BRING FOR COMPANIES AND THE ECONOMY IN PARIS STOCKS SURGED ON ENTHUSIASTIC EXPECTATIONS THAT THE NORTH AMERICAN TRADE PACT WOULD BE RATIFIED LATER IN THE DAY BY US LAWMAKERS AND ON THE BELIEF THAT THE EUROPEAN RATECUT MOVEMENT IS UNDER WAY THE MARKET ALSO WAS BOOSTED BY WALL STREET'S JUMP TUESDAY AND THE STRONG US DOLLAR IN MEXICO CITY INVESTORS SOLD STOCKS ON THE PREMISE THAT NAFTA WAS CERTAIN TO WIN US HOUSE PASSAGE THIS WAS CLASSIC BUY THE RUMOR AND SELL THE FACT OR THE ALMOSTFACT A DEALER SAID APPROVAL OF NAFTA HAD BEEN FACTORED INTO MEXICO STOCKS FOR THE MOST PART OVER THE PAST FIVE SESSIONS OF SUCCESSIVE RECORD HIGHS AND WITH THE MARKET UP OVER 12 IN THE PAST WEEK IT WASN'T DIFFICULT TO FIND SELLERS AHEAD OF AN EXPECTED STRONG CORRECTION ONCE THE NAFTA EXCITEMENT DIES DOWN IN BRUSSELS SHARES SOARED 16 TO A RECORD FINISH TOPPING THE HIGH SET NOV 4 AFTER THE BELGIAN GOVERNMENT UNVEILED DETAILS OF AN AUSTERITY PLAN AND THE BELGIAN NATIONAL BANK CUT INTEREST RATES IN MILAN SHARES ENDED HIGHER ON RENEWED BUYING ON THE FIRST DAY OF THE DECEMBER TRADING ACCOUNT STOCKS SCHEDULED FOR PRIVATIZATION ATTRACTED ATTENTION AND TELECOMMUNICATIONS SHARES AGAIN FOUND FAVOR AMONG FOREIGN INVESTORS IN MADRID PRICES GAINED ON HOPES FOR A GERMAN INTERESTRATE CUT AND ON US STOCKS' DAYEARLIER CLIMB IN STOCKHOLM STOCKS ADVANCED ON POSITIVE CORPORATE EARNINGS REPORTS IN SYDNEY FOLLOWING THE LEAD OF THE RECORDSETTING PACE A DAY EARLIER IN THE US STOCKS LATCHED ONTO THE MOMENTUM TO FINISH HIGHER LED BY BANK STOCKS IN HONG KONG SHARES SLUMPED 18 MAINLY BECAUSE OF PROFITTAKING IN RELATIVELY QUIET TRADING THE MARKET SKIDDED 23 IN TWO SESSIONS FROM THE ALLTIME HIGH SET MONDAY A FURTHER DROP MAY BE IN STORE AFTER MORGAN STANLEY'S CHIEF STRATEGIST BARTON BIGGS REDUCED THE WEIGHTING OF THE HONG KONG MARKET IN HIS EMERGINGMARKETS PORTFOLIO TO 10 FROM 16 IN SINGAPORE PRICES ROSE BOUNCING BACK FROM LOSSES IN THE PAST TWO SESSIONS IN TAIPEI EQUITIES REBOUNDED SLIGHTLY IN ACTIVE DEALINGS BUT CAUTIOUSNESS ABOUT COMING ELECTIONS IN TAIWAN KEPT A TIGHT REIN ON PRICES IN WELLINGTON STOCKS SOARED 46 AS NEW ZEALAND'S POLITICAL UNCERTAINTY EVAPORATED AND THE INCUMBENT NATIONAL PARTY GOVERNMENT SQUEAKED BACK INTO OFFICE WITH A ONESEAT MAJORITY IN PARLIAMENT FOLLOWING THE COUNTING OF ABSENTEE BALLOTS IN THE RECENT ELECTION AMONG CORPORATE DEVELOPMENTS IN LONDON COURTAULDS PLUNGED 44 PENCE OR 92 TO 432 PENCE 640 THE INDUSTRIAL CONGLOMERATE'S PRETAX PROFIT FOR THE SIX MONTHS ENDED SEPT 30 ROSE 87 TO 961 MILLION 1423 MILLION INCLUDING A SPECIAL GAIN OF 244 MILLION FROM A YEAR EARLIER AND THE INTERIM DIVIDEND WAS RAISED 53 TO 4 PENCE A SHARE BUT COURTAULDS WARNED THAT ITS OUTLOOK FOR THE FISCAL SECOND HALF HAS DETERIORATED IT UNVEILED A TWOYEAR RESTRUCTURING THAT WILL RESULT IN A CHARGE OF BETWEEN 35 MILLION AND 45 MILLION IN THE FISCAL SECOND HALF 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 9311180112 931118 MARKETING & MEDIA ADVERTISING ACTION ADVENTURE OR VIOLENCE MCA TV'S SERIES STIRS QUESTIONS BY KEVIN GOLDMAN MCA TELEVISION THINKS IT KNOWS WHICH SHOWS VIEWERS REALLY WANNA WATCH ACTION/ADVENTURE PROGRAMS INCLUDING A SERIES ABOUT TWO BROTHERS WHO FLEE TO THE US FROM CHINA AFTER THE TIANANMEN SQUARE MASSACRE THE SHOW VANISHING SON IS HEAVILY INTO MARTIAL ARTS AT A TIME WHEN MAJOR BROADCAST NETWORKS ARE SHYING AWAY FROM THE ACTION/ADVENTURE GENRE WITH SCENES OF CAR CHASES FIST FIGHTS AND OTHER ACTS OF MAYHEM MCA AND ITS UNIVERSAL TELEVISION UNIT ARE CONFOUNDING CONVENTIONAL WISDOM TO EMBRACE THE FORMAT AND MCA IS ABOUT TO FLOOD THE AIRWAVES AND PRINT MEDIA WITH AN ADVERTISING CAMPAIGN TO CALL ATTENTION TO THIS ENTERTAINMENT FORMAT THAT MANY SAY IS GOING THE WAY OF THE TV WESTERN MCA EXECUTIVES SAID YESTERDAY THAT YOUNG & RUBICAM WAS CHOSEN TO HANDLE THE CONSUMER ADVERTISING CAMPAIGN MEDIA PLANNING AND MEDIA BUYING TO LAUNCH ITS ACTION PACK SYNDICATED PACKAGE YOUNG & RUBICAM'S NEW YORK OFFICE WON THE ACCOUNT IN A QUIET SHOOTOUT WITH THE LOS ANGELES BRANCH OF OMNICOM GROUP'S DDB NEEDHAM ALTHOUGH YOUNG & RUBICAM EXECUTIVES DECLINED TO COMMENT ABOUT THE CAMPAIGN NED NALLE EXECUTIVE VICE PRESIDENT OF UNIVERSAL TELEVISION SAYS THE SLOGAN IN PRINT AND TELEVISION ADS WHICH ARE EXPECTED TO BEGIN SHORTLY IS WHAT YOU REALLY WANNA WATCH THE VENTURE FROM MCA TELEVISION A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL IS QUITE RISKY CONSIDERING THE FIRESTORM OF CONTROVERSY OVER TELEVISION VIOLENCE WASHINGTON OFFICIALS INCLUDING ATTORNEY GENERAL JANET RENO AND SEN PAUL SIMON THE ILLINOIS DEMOCRAT HAVE BEEN VOCAL IN EXPRESSING THEIR DISPLEASURE WITH THE AMOUNT OF VIOLENCE ON TELEVISION MOREOVER ADVERTISERS ARE INCREASINGLY WARY ABOUT SPONSORING SUCH SHOWS THE RISK THEY RUN IS THAT THE SHOWS ARE OVERLY VIOLENT SAYS JOEL M SEGAL AN EXECUTIVE VICE PRESIDENT AT INTERPUBLIC GROUP'S MCCANNERICKSON YOU HAVE TO HAVE A CERTAIN AMOUNT OF VIOLENCE IN AN ACTIONPACKED SHOW BUT IT CAN'T BE VIOLENCE FOR VIOLENCE'S SAKE ADDS JON MANDEL A SENIOR VICE PRESIDENT AT GREY ADVERTISING THE VIOLENCE COULD BE A PROBLEM TO CALM APPREHENSION MCA EXECUTIVES HELD MEETINGS RECENTLY WITH BIG AD AGENCIES CLAIMING THE SHOWS DON'T CONTAIN GRATUITOUS VIOLENCE MADISON AVENUE EXECUTIVES SAY ADDITIONAL SESSIONS BETWEEN MCA AND AD EXECUTIVES ARE SCHEDULED FOR LATER THIS MONTH TO DATE HOWEVER ADVERTISERS HAVEN'T VIEWED THE ACTUAL SHOWS ACTION PACK WILL OFFER 24 TWOHOUR ORIGINAL SHOWS FROM SIX DIRECTORS INCLUDING JOHN LANDIS AND WILLIAM SHATNER THE SHOWS ARE ALREADY SOLD TO MORE THAN 130 STATIONS INCLUDING OUTLETS IN NEW YORK LOS ANGELES CHICAGO HOUSTON AND SAN FRANCISCO THE PRIMARY OBJECTIVE IS TO ATTRACT THE YOUNG MALE AUDIENCE WHICH IS LARGELY IGNORED BY BROADCAST NETWORKS AND THEIR PRIMETIME SCHEDULES OF SITUATION COMEDIES AND FEMALEORIENTED DRAMAS THE EXCEPTION ABC'S NYPD BLUE A SOLID RATINGS HIT THAT ATTRACTS A LARGE MALE AUDIENCE MR NALLE SAYS MCA AND UNIVERSAL ARE SENSITIVE TO THE VIOLENCE ISSUE AND ADVERTISING AT THE SCRIPT LEVEL WE SET GUIDELINES AND BOUNDARIES WITH THE FIRST RULE BEING NO GRATUITOUS VIOLENCE HE SAYS HE DESCRIBES THE TWOHOUR SHOWS AS GOOD AND ROLLICKING FUN AS OPPOSED TO ENDLESS SCENES OF SHOOTINGS AND OTHER ACTS OF CHAOS HE ALSO SAYS THE AIM IS TO PRODUCE SHOWS THAT A VIEWER COULD WATCH WITH HIS FOURYEAROLD YOU HAVE TO TELL STORIES IN GOOD TASTE HE SAYS AND THAT'S WHAT WE'RE GOING TO DO BUT IN SOME PRINTED MATERIAL SENT TO STATIONS AND ADVERTISERS THERE ARE GRAPHIC PHOTOGRAPHS INCLUDING ONE THAT SHOWS A MAN DELIVERING A SOLID KICK TO HIS OPPONENT'S HEAD WILLIAM ABBOTT PRESIDENT OF THE QUARTERCENTURYOLD FOUNDATION TO IMPROVE TELEVISION BASED IN BOSTON ARGUES THAT ACTION/ADVENTURE IS MERELY A EUPHEMISM FOR VIOLENCE IT'S ODD TIMING THAT MCA IS DOING THIS SINCE THE CLIMATE IS CHILLED AT THE MOMENT FOR THIS KIND OF SHOW IT UPSETS MR ABBOTT EVEN MORE THAT THE SHOWS WILL BE BROADCAST ON MANY STATIONS BEGINNING AT 8 PM EST JUST WHEN CHILDREN ARE PLANTED IN FRONT OF THE TUBE MR ABBOTT OBJECTS TO THE IDEA OF MARTIAL ARTS BEING HIGHLIGHTED IN VANISHING SON KUNG FU IS CLEARLY VIOLENCE SAYS MR ABBOTT AN MCA SPOKESMAN COUNTERS KUNG FU IS MARTIAL ARTS WHAT I CALL VIOLENCE IS WHEN THERE IS BLOOD KILLING AND MACHINEGUNNING MR ABBOTT ALSO COMPLAINS THAT OTHER ACTION PACK SERIES SUCH AS HERCULES USE A TRADITIONAL HERO FIGURE YOUNG PEOPLE SHOULDN'T BE TAUGHT BY TRADITIONAL HEROES THAT VIOLENCE AS A FIRST REACTION IN SITUATIONS IS A GOOD THING HE SAYS YET MATTHEW SHAPIRO CORPORATE VICE PRESIDENT FOR PROGRAMMING AT MMT A FIRM THAT RECOMMENDS SHOWS TO STATIONS SAYS BY THEIR NATURE THESE SHOWS ARE GOING TO HAVE THE SORTS OF CONFLICT THAT WILL BE RESOLVED PHYSICALLY BUT THERE IS MORE VIOLENCE FOUND ON REALITY SHOWS AND THE NETWORK EVENING NEWSCASTS EXACTLY HOW WELL ACTION PACK IS DOING WITH ADVERTISERS REMAINS A MYSTERY WHILE AN MCA SPOKESMAN SAYS THE SHOWS ARE SELLING WELL HE SAYS IT IS AGAINST COMPANY POLICY TO RELEASE A LIST OF ADVERTISERS AND DAVID BRENNER EXECUTIVE VICE PRESIDENT OF ADVERTISING SALES AT MCA TV DIDN'T RETURN SEVERAL TELEPHONE CALLS TO HIS NEW YORK OFFICE NORTHWEST AIRLINES TODAY LAUNCHES AN UNUSUAL AD CAMPAIGN FEATURING RETIRED PILOTS AND FLIGHT ATTENDANTS TO PORTRAY THE AIRLINE AS A STATEOFTHEART INNOVATOR CREATED BY MINNEAPOLIS AGENCY FALLON MCELLIGOTT THE NEW WAYS CAMPAIGN RETAINS THE SLOGAN SOME PEOPLE JUST KNOW HOW TO FLY IT SHOWS OFF NORTHWEST'S NEW PRODUCTS AND SERVICES INCLUDING WORLDLINK VIDEO SYSTEM AVAILABLE ON INTERNATIONAL FLIGHTS THE SYSTEM ALLOWS PASSENGERS TO USE PERSONAL VIDEO SCREENS TO PLAY GAMES WATCH MOVIES AND ORDER DUTYFREE MERCHANDISE THE NEW SPOTS WILL BE BROADCAST IN 10 MAJOR CITIES SERVED BY NORTHWEST AND WILL RUN ON NATIONAL CABLE CHANNELS NORTHWEST A UNIT OF WINGS HOLDINGS INC WOULDN'T DISCUSS THE CAMPAIGN BUDGET WITH ACTUAL FOOTAGE OF FLIGHTS FROM YEARS GONE BY THE RETIRED AIRLINE EMPLOYEES DESCRIBE HOW INFERIOR FLYING USED TO BE MAGAZINES FOR EXAMPLE WERE THE ONLY INFLIGHT ENTERTAINMENT THEN COME IMAGES OF NORTHWEST FLIGHTS TODAY INCLUDING A MAN PLAYING VIDEO GAMES AND A WOMAN SENDING A FAX FROM HER AIRPLANE SEAT THE CAMPAIGN AIMS TO REASSURE THOSE TRAVELERS STILL WARY OF NORTHWEST WHICH THIS SUMMER NEARLY HAD TO FILE FOR BANKRUPTCYLAW PROTECTION THE AIRLINE AVERTED THE FILING BY WORKING OUT A LASTMINUTE WAGECONCESSION AGREEMENT WITH EMPLOYEES BY SHOWING DECADES OF NORTHWEST'S TRADITION THROUGH THE EYES OF FORMER EMPLOYEES WE ARE SAYING IN A SUBTLE AND IMPLICIT WAY THAT WE ARE A PLAYER WITH STABILITY IN AN UNSTABLE INDUSTRY SAYS NANCY SWANSON NORTHWEST'S DIRECTOR OF DOMESTIC ADVERTISING 9311180111 931118 WHO'S NEWS BROOKLYN UNION GAS CO BROOKLYN UNION GAS CO BROOKLYN NY ARDEN DAVIS MELICK 52 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF PUBLIC RELATIONS AND ADVERTISING FOR THE GAS UTILITY SHE WAS FORMERLY DIRECTOR OF CORPORATE COMMUNICATIONS FOR QUANTUM CHEMICAL CORP A CHEMICALPRODUCTS MAKER 9311180110 931118 INTERNATIONAL PRAGUE LITERATI DEFY CRIMINAL ATTACK' ON A CULTURAL ICON CZECH COFFEEHOUSE IS REOPENED BY PATRONS AFTER US FIRM KEPT IT SHUTTERED TOO LONG BY NEIL KING JR SPECIAL TO THE WALL STREET JOURNAL PRAGUE THE COFFEE'S WEAK THE SERVICE IS LOUSY AND THE PATRONS OF THE CAFE SLAVIA COULDN'T BE HAPPIER PAST HABITUES AND NEWCOMERS ALIKE HAVE BEEN CELEBRATING THE REOPENING OF ONE OF PRAGUE'S CULTURAL ICONS FOR DECADES THE CITY'S ARTISTIC COMMUNITY MADE A SECOND HOME HERE THEY SCRIBBLED MANIFESTOES KINDLED LOVE AFFAIRS AND REVOLUTIONS SMETANA DVORAK AND KAFKA WERE REGULARS AS THIS HAUNT OF HAUNTS SURVIVED THE HAPSBURG COLLAPSE HITLER'S INVASION AND THE DREARIEST DAYS OF STALIN BUT THEN CAME CAPITALISM AND THE MIGHTY SLAVIA FELL INTO OF ALL THINGS THE HANDS OF A BOSTON DEVELOPER WITH A 50YEAR LEASE AND PLANS FOR MAJOR RENOVATION HN GORIN INC SHUT THE DOORS THE MONTHS OF CLOSURE STRETCHED WELL PAST A YEAR THE CRIES OF BETRAYAL SWELLED IT WAS TIME FOR THE NATION'S SCRIBBLERINCHIEF TO STEP IN LATE LAST MONTH PRESIDENT VACLAV HAVEL PLAYWRIGHT AND LONGTIME SLAVIA PATRON CALLED THE SHUTTERING OF THE CAFE A CRIMINAL ATTACK ON THE SPIRITUAL LIFE OF PRAGUE AND ISSUED A PETITION IF THE SLAVIA DOESN'T OPEN SOON THE TRACT READ IT WILL SERIOUSLY DAMAGE THE GOOD RELATIONSHIP OF THE PRAGUE INTELLIGENTSIA TO CAPITALISM AND TO THE UNITED STATES OF AMERICA HIS WORDS WON PRAISE FROM LITERATI ALL OVER TOWN BUT THEY SEEM TO HAVE SUNK DEEPEST INTO THE MINDS OF TWO EXPATRIATE BAR OWNERS AMERICAN JOHNBRUCE SHOEMAKER AND CANADIAN GLENN EMERY TOGETHER WITH 28YEAROLD PRAGUE IMPRESARIO MAREK GREGOR THEY EMBARKED ON A MISSION TO LIBERATE THE SLAVIA THEY FOUND A SYMPATHETIC EAR ATTACHED TO LADISLAV PROVAAN THE LOCAL REPRESENTATIVE OF LEASEHOLDER HN GORIN AND A MINORITY SHAREHOLDER IN THE BOSTONBASED COMPANY MR PROVAAN SAYS THE SLAVIA SAT IDLE ALL THESE MONTHS BECAUSE HN GORIN DIDN'T COME UP WITH THE MONEY NEARLY 3 MILLION NEEDED TO RENOVATE THE PLACE HE SUPPLIED THE EAGER THREESOME WITH A KEY AND ON NOV 8 THE SLAVIA WAS BACK IN BUSINESS AS THINKERS AND DOERS IT WAS CLEAR THAT OUR COMMUNITY HAD BEEN VIOLATED SAYS MR SHOEMAKER A TRANSPLANTED MONTANAN AMID THE SMOKE AND GRIT OF THE REBORN CAFE HAVEL SAID THE WORD AND WE FOLLOWED WHILE THE TRIO ALONG WITH 2000 OF THEIR CLOSEST COMRADES ARE NOW CALLING THEMSELVES THE SOCIETY OF FRIENDS OF CAFE SLAVIA AND SAY THEY'RE READY TO RUN THE SACRED PLACE IN PERPETUITY LESSFLAMBOYANT PRINCIPALS IN THE AFFAIR AREN'T AMUSED THE BUILDING'S OWNER THE ACADEMY OF PERFORMING ARTS HAS REACTED BY CANCELING THE 50YEAR LEASE HELD BY HN GORIN WHICH TOOK OVER THE SLAVIA AND TWO ADJOINING RESTAURANTS IN EARLY 1992 COMPANY PRESIDENT ROSALIND GORIN IN TURN NOTIFIED MR PROVAAN THAT HE WAS FIRED MRS GORIN SAYS HER LAWYERS ARE TAKING APPROPRIATE LEGAL ACTIONS TO EVICT THE TRESPASSERS AND ARE TALKING TO OFFICIALS AT THE ACADEMY OF PERFORMING ARTS TO RESOLVE THEIR DIFFERENCES IN A TELEPHONE INTERVIEW FROM THE US MRS GORIN SAID I ABSOLUTELY RESPECT THAT PEOPLE CARE ABOUT THIS TREASURE AND THAT IT'S DIFFICULT FOR THEM TO HAVE IT IN FOREIGN HANDS BUT I'M INDIGNANT THAT A SMALL GROUP OF TRESPASSERS COULD DAMAGE THE REPUTATION OF THEIR COUNTRY BY TAKING SUCH ACTION ESPECIALLY UNDER THE LEADERSHIP OF A MAN OF PRESIDENT HAVEL'S STATURE SHE SAYS SHE DOESN'T BLAME MR HAVEL'S SLAVIA STATEMENT OR PETITION FOR SPARKING THE EPISODE MR HAVEL'S OFFICE HAS REMAINED ALMOST MUM IF THIS INVASION PROVES TO BE ILLEGAL MR HAVEL'S SPOKESMAN SAID THE PRESIDENT CANNOT AND DOES NOT AGREE WITH IT MEANWHILE THOUSANDS OF FREELOADERS BACKPACKERS AND ONETIME PATRONS FLOCKED TO THE CAVERNOUS PLACE ON REOPENING NIGHT TO SIP FREE COFFEE AND SOAK UP WHAT ONE OF THEM CALLED THE HIPPEST HAPPENING SINCE THE REVOLUTION FOUR YEARS AGO OLD WOMEN SAT BESIDE KIDS WITH NOSERINGS ASHTRAYS OVERFLOWED TOURISTS EXPECTING TABLE SERVICE WALKED OUT IN DISGUST THOSE FAMILIAR WITH SLAVIA LORE AREN'T SURPRISED BY ALL THE FUSS FOR ONE THING THE PLACE TRACES IT ROOTS TO THE 1860S A FERTILE ERA FOR THE FLOWERING OF CZECH NATIONALISM BESIDES THE FLOWER OF CZECH CREATIVITY HAS NEARLY TAKEN ROOT WHILE WARMING ITS CHAIRS OVER THE YEARS COMPOSER BEDRICH SMETANA WAS A REGULAR NOBLE PRIZE WINNER JAROSLAV SEIFERT WROTE A BATCH OF POEMS ABOUT THE PLACE AROUND ITS TABLES GENERATIONS OF INTELLECTUALS PLOTTED THE SEVERING OF PRAGUE FROM VIENNA THE OUSTING OF THE NAZIS THE DOWNFALL OF THE COMMUNISTS STILL NOT EVERYONE'S IMPRESSED BY ITS REINCARNATION UTTERLY DISGUSTING SAYS ONE WOMAN A PATRON BACK IN THE 1940S SHE GLANCES AT A TABLE OF CZECHS IN LEATHER JACKETS IN MY DAY IT WAS CLEAN AND PEOPLE DRESSED WELL SHE SAYS TODAY'S FANS LIKE IT THE WAY IT IS THE SLAVIA WAS NEVER A LUXURIOUS PLACE LIKE MANY OF THE COFFEEHOUSES OF VIENNA SAYS ZDENEK URBANEK WHO AT 76 RANKS AMONG PRAGUE'S PATRIARCHS OF CULTURE MR URBANEK HAS TRANSLATED SHAKESPEARE FAULKNER JOYCE AND DOZENS OF OTHER WRITERS INTO CZECH BUT HIS BESTKNOWN WORK LATELY IS AS SIGNATORY TO THE LEASE THAT TURNED THE SLAVIA OVER TO HN GORIN AT THE TIME HE WAS RECTOR OF THE PERFORMINGARTS ACADEMY I CAN'T TELL YOU HOW MANY TIMES I'VE BEEN ACCUSED OF SELLING OUT THE CAFE SLAVIA TO AMERICANS HE SAYS BUT THE IMPORTANT THING WAS THAT IT REMAIN AFFORDABLE TO STUDENTS ARTISTS AND INTELLECTUALS HOW WERE WE TO KNOW IT WOULD STAY CLOSED FOR SO LONG 9311180109 931118 DONNA KARAN SUSPENDS PLAN FOR PUBLIC OFFER MOVE APPARENTLY IS CAUSED BY STRIFE WITH PARTNERS SLUGGISH RETAIL DEMAND BY TERI AGINS AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK DESIGNER DONNA KARAN'S HOTLY ANTICIPATED INITIAL PUBLIC OFFERING WAS ABRUPTLY SUSPENDED THE APPARENT CASUALTY OF INTERNAL STRIFE WITH HER LONGTIME FINANCIAL PARTNERS AS WELL AS SLUGGISH DEMAND FOR HER FASHIONS AT RETAIL AT A NEWS CONFERENCE MS KARAN AND HER HUSBAND AND COCHIEF EXECUTIVE STEPHAN WEISS SAID THAT AN UNEXPECTEDLY SOFT RETAIL CLIMATE IN THE THIRD QUARTER HAD PERSUADED THEM NOT TO GO FORWARD WITH THE PLANNED OFFERING FROM WHICH THEY HAD HOPED TO RAISE AS MUCH AS 1589 MILLION IN NET PROCEEDS FROM THE SALE OF 11 MILLION SHARES AT 16 APIECE WE DON'T BELIEVE THAT OUR OFFERING WOULD RECEIVE A VALUATION THAT TRULY REFLECTS THE COMPANY'S LONGTERM POTENTIAL FOR GROWTH AND PROFITABILITY MR WEISS SAID ADDED MS KARAN TIMING IS EVERYTHING AND THIS WAS JUST NOT THE RIGHT TIME FOR US NONETHELESS DONNA KARAN CORP IS WALKING AWAY FROM ONE OF THE MOST BUOYANT IPO MARKETS IN RECENT MEMORY ONE THAT HAS RAISED A RECORD 485 BILLION SO FAR THIS YEAR YESTERDAY MORE THAN HALF A DOZEN IPOS SUCCESSFULLY CAME TO MARKET WOMENSWEAR RETAILER TALBOTS INC IS EXPECTED TO BE A POPULAR NEW OFFERING THIS WEEK TOMMY HILFIGER CORP WHICH WENT PUBLIC IN 1992 AND LAST WEEK SOLD AN ADDITIONAL 44 MILLION SHARES FOR 31 APIECE CLOSED YESTERDAY AT 32875 CLOSE TO ITS 52WEEK HIGH OF 34 THE WITHDRAWAL OF MS KARAN'S OFFERING UNDERSCORED THE DESIGNER'S FAILURE TO RESOLVE LONGSTANDING DIFFERENCES WITH HER FOUNDING PARTNER TAKIHYO INC PEOPLE INSIDE THE COMPANY SAID THOUGH TAKIHYO'S OWNERS TOMIO TAKI AND FRANK MORI HAVE ALWAYS DENIED IT IT HAS BEEN WIDELY BELIEVED THAT THE IMPETUS FOR THE OFFERING WAS TO ALLOW THEM TO SEVER THEIR TIES WITH MS KARAN AND COLLECT THEIR PROFITS MS KARAN 44 YEARS OLD MADE HER NAME DESIGNING COMFORTABLE CLOTHES FOR WOMEN EXECUTIVES ACCORDING TO PEOPLE CLOSE TO THE NEGOTIATIONS THE PARTIES WERE UNABLE TO MEND FENCES SUFFICIENTLY TO STRUCTURE THE DEAL AMONG OTHER THINGS THESE PEOPLE SAY MS KARAN AND HER PARTNERS COULDN'T AGREE ON THE AMOUNT OF RESTRICTED STOCK THAT SHE WOULD RECEIVE MESSRS WEISS AND MORI SAID THAT THE PERCEPTION THAT THE DEAL WAS POSTPONED HAD ANYTHING TO DO WITH INTERNAL INFIGHTING IS FLAT OUT WRONG THIS IS PURELY A VALUATION ISSUE MR MORI SAID THESE ARE FOUR INDIVIDUALS WHO CAME IN THIS IN A FRIENDLY SUPPORTIVE WAY AND NOT BECAUSE OF A DISAGREEMENT HE SAID THEY BACKED AWAY FROM THE DEAL BECAUSE THIRDQUARTER SALES WERE ONLY UP 15 WHICH WAS WAY BELOW THE COMPANY'S INTERNAL EXPECTATIONS WHICH WOULD HAVE AFFECTED THE COMPANY'S VALUATION IF THEY ALL HAD BEEN TOGETHER HOLDING HANDS THIS STOCK WOULD HAVE BEEN ON THE MARKET MONTHS AGO SAID ONE OF THE INDIVIDUALS BUT THEY COULDN'T AGREE TO AGREE THE OFFERING ANTICIPATED SINCE THE SPRING HAS BEEN REPEATEDLY DELAYED FOR ALL OF THE HYPE DONNA KARAN HAD NEITHER DISTRIBUTED A MARKETING DOCUMENT TO POTENTIAL INVESTORS NOR CONDUCTED A ROAD SHOW TO WHIP UP INTEREST IN THE STOCK MS KARAN AND THE TAKIHYO PARTNERS TANGLED OVER THE COMPANY'S STRATEGIC DIRECTION PARTICULARLY THE PACE AND NATURE OF FUTURE DIVERSIFICATION AND THIS SPILLED OVER INTO THE PREPARATION TO GO PUBLIC THE PEOPLE INSIDE THE COMPANY SAID CALLING THE INTERNAL FRICTION A HIGHPROFILE SOAP OPERA CHARLES RONSON OF BALESTRA CAPITAL IN NEW YORK WHO PUBLISHES THE IPO VALUE MONITOR SAID ONCE THIS TURMOIL ENDS THEY WILL PRESUMABLY BE ABLE TO PRESENT A UNIFIED FACE TO THE PUBLIC AND SEEK TO GO PUBLIC AGAIN BUT TO DO SO HE ADDS THE FOUR PARTNERS WILL HAVE TO PRESENT AN ESPECIALLY SEAMLESS PUBLIC FACE IN ANY FUTURE OFFERING AT YESTERDAY'S NEWS CONFERENCE MS KARAN MR MORI AND THEIR UNDERWRITERS FROM BEAR STEARNS & CO AND MORGAN STANLEY WERE ALREADY TAKING THAT TACK MR TAKI WHO WAS SAID TO BE TRAVELING WASN'T IN ATTENDANCE THEY EXPRESSED CONFIDENCE NOT ONLY THAT THE RETAIL ENVIRONMENT WOULD SOON REBOUND BUT THAT THE OFFERING WOULD ULTIMATELY BE REVIVED WE WILL BE A PUBLIC COMPANY MS KARAN SAID EMPHATICALLY MR MORI SAID HE HOPED ANOTHER OFFERING COULD BE MADE SOMETIME NEXT YEAR THEY STRESSED THAT THE COMPANY HAS MORE THAN SUFFICIENT FINANCIAL RESOURCES TO SUPPORT ITS NEARTERM GROWTH PLANS IN SUSPENDING THE OFFERING THE COMPANY WILL FOR THE MOMENT RETAIN THE FINANCIAL EXPERTISE AND RESOURCES OF MESSRS TAKI AND MORI THIS FALL AS DETAILS OF THE PUBLIC OFFERING SURFACED AND WITH IT THE APPARENT DIMINISHED ROLE OF TAKIHYO MANY QUESTIONED WHETHER THE DESIGNER AND HER HUSBAND WOULD BE UP TO THE JOB OF CREATING THE FASHION LINE WHILE UNDER THE SCRUTINY OF WALL STREET I'M VERY GOOD ON HEMLINES AND SILHOUETTES SHE SAID YESTERDAY BUT WHEN IT CAME DOWN TO THE NITTYGRITTY OF THE OFFERING I LEFT THAT TO MY BANKERS MR WEISS SAID SALES FOR THE NINE MONTHS WERE 265 MILLION AND OPERATING PROFIT WAS MORE THAN 28 MILLION HOWEVER THE THIRDQUARTER TRENDS WERE NOT UP TO OUR EXPECTATIONS HE SAID STEPHEN RUZOW THE COMPANY'S CHIEF OPERATING OFFICER SAID SALES OF DKNY ITS LARGEST DIVISION WERE CURRENTLY FLAT COMPARED WITH LAST YEAR THE DESIGNER'S MENSWEAR AND COUTURE LINES ARE AHEAD OF LAST YEAR HE ADDED BUT IN AN UPDATE TO ITS AUGUST REGISTRATION STATEMENT THE COMPANY INDICATED THAT ITS NEW CHILDREN'S AND MENSWEAR LINES WOULD SHOW LOSSES THIS YEAR THE PERFUME THE LAUNCH OF WHICH WAS ANOTHER SOURCE OF FRICTION BETWEEN MS KARAN AND TAKIHYO RACKED UP A 59 MILLION LOSS ON SALES OF 41 MILLION IN THE SIX MONTHS ENDED MARCH 31 THE PERFUME BUSINESS WASN'T TO BE INCLUDED IN THE OFFERING 9311180108 931118 REVIEW & OUTLOOK EDITORIAL ASIDES OFF WITH THEIR HEADS THE INSURANCE INDUSTRY'S HARRY AND LOUISE TV SPOTS ABOUT THE CLINTON HEALTH PLAN MUST REALLY BE WORKING BECAUSE CONGRESSMAN JOHN DINGELL HAS BEGUN TO BELLOW I'M BEGINNING TO THINK WE MIGHT HAVE TO HAVE AN INQUIRY INTO THIS ADVERTISING IN OUR OVERSIGHT SUBCOMMITTEE SAID CONGRESS'S GRAND INQUISITOR THIS WEEK ACCORDING TO SCRIPPS HOWARD KNOWING OF MR DINGELL'S GREAT RESPECT FOR FREESPEECH RIGHTS WE TRUST HE WILL SHOW MERCY AND PUT THE DISSENTING EXECUTIVES IN STOCKS SAVING THE GUILLOTINE FOR ONLY THE WORST OFFENDERS 9311180106 931118 ECONOMY HOUSING STARTS CLIMBED 27 DURING OCTOBER POSTFLOODING CONSTRUCTION IN MIDWEST PUTS ACTIVITY AT BEST SINCE EARLY '90 BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSING STARTS ROSE IN OCTOBER FOR THE THIRD MONTH IN A ROW THE COMMERCE DEPARTMENT SAID CLIMBING 27 TO THE HIGHEST LEVEL SINCE BEFORE THE RECESSION THE ENCOURAGING INCREASE WAS DRIVEN LARGELY BY CONSTRUCTION POSTPONED BY FLOODING IN THE MIDWEST HOUSING STARTS JUMPED 133 IN THE MIDWEST ROSE ONLY SLIGHTLY IN THE SOUTH AND FELL IN THE WEST AND NORTHEAST HOWEVER MANY ANALYSTS EXPECT THAT THE HOUSING SECTOR WILL CONTINUE TO IMPROVE ACROSS THE COUNTRY IN COMING MONTHS HOUSING GROWTH SEEMS TO BE OUT OF THE DOLDRUMS SAID ROBERT SHEEHAN CONSULTING ECONOMIST AT THE NATIONAL APARTMENT ASSOCIATION STARTS INCREASED TO AN ANNUAL RATE OF 1396000 IN OCTOBER AFTER CLIMBING 28 IN SEPTEMBER TO A REVISED PACE OF 1359000 THE OCTOBER RATE WAS THE HIGHEST SINCE FEBRUARY 1990 DAVID SEIDERS CHIEF ECONOMIST AT THE NATIONAL ASSOCIATION OF HOME BUILDERS SAID THE HEALTHY OCTOBER GAIN SUGGESTS THAT THE ECONOMY WILL EXPERIENCE SURPRISINGLY GOOD FOURTHQUARTER GROWTH RATES IN THE THIRD QUARTER RESIDENTIAL INVESTMENT GAVE A BIG BOOST TO THE ECONOMY SUGGESTING THAT LOW INTEREST RATES ARE FINALLY ENTICING AMERICANS INTO THE HOUSING MARKET MOST ANALYSTS SAID THE HOUSING MARKET SURGE IS LIKELY TO CONTINUE THOUGH SOME THOUGHT THE INCREASE IN THE PAST FEW WEEKS WAS CAUSED BY A RECENT UPTURN IN MORTGAGE RATES PEOPLE HELD OFF BUYING A HOUSE WAITING TO SEE HOW LOW MORTGAGE RATES WOULD GO NOW THAT THEY HAVE GONE UP A LITTLE PEOPLE ARE BUYING BEFORE THEY RISE ANY FURTHER SAID LYLE GRAMLEY CHIEF ECONOMIST OF THE MORTGAGE BANKERS ASSOCIATION TO MANY THE BEST NEWS IN THE HOUSING REPORT WAS A 58 INCREASE IN SINGLEFAMILY HOUSING STARTS WHICH HAVE REACHED THEIR HIGHEST LEVEL IN SIX YEARS MORTGAGE RATES ARE SO LOW IT IS INDUCING RENTERS TO BECOME BUYERS SAID MR SHEEHAN THE GOOD NEWS FOR SINGLEFAMILY HOMES WAS BAD NEWS FOR APARTMENTS LAST MONTH STARTS IN OCTOBER FOR STRUCTURES WITH FIVE OR MORE UNITS PLUNGED 20 AFTER A TWOMONTH SPIKE ATTRIBUTED TO A NEW LOWINCOME TAX CREDIT THAT TOOK EFFECT IN AUGUST ANALYSTS SAID THE GENERAL OUTLOOK FOR THE HOUSING SECTOR APPEARS GOOD THE CREDIT LOGJAM IS BREAKING UP MR GRAMLEY SAID NEW CONSTRUCTION APPEARS TO BE DRIVEN BY AN INCREASED DEMAND SUGGESTING HOUSING OVERSUPPLY IS NOT A PROBLEM IN THE WEST AND NORTHEAST WHERE THERE TENDS TO BE MORE MULTIFAMILY HOUSING STARTS ARE DOWN SOUTHERN CALIFORNIA HAS THE MOSTSIGNIFICANT REGIONAL PROBLEMS MR GRAMLEY SAID IT WILL PROBABLY HOLD DOWN THAT AREA FOR QUITE SOME TIME BUILDERS ARE RELATIVELY BULLISH DESPITE RELATIVELY LOW CONSUMER CONFIDENCE THE MAIN THREAT TO THE HOUSING MARKET IS THAT BOND RATES WOULD MAKE A SUSTAINED SIGNIFICANT MOVE UPWARD SAID MR SEIDERS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9311180105 931118 WHO'S NEWS COASTAL'S ANR CHIEF RESIGNS AND UNIT SHIFTS OTHER TOP EXECUTIVES HOUSTON COASTAL CORP SAID THE CHIEF EXECUTIVE OFFICER OF ITS LARGEST NATURALGAS PIPELINE UNIT RESIGNED MEANTIME COASTAL ANNOUNCED OTHER SENIORMANAGEMENT CHANGES AT THAT SUBSIDIARY WILLIAM P VITITOE 55 YEARS OLD RESIGNED EFFECTIVE IMMEDIATELY AS ANR PIPELINE CO PRESIDENT AND CHIEF EXECUTIVE OFFICER TO PURSUE OTHER INTERESTS REACHED AT HIS HOME IN GROSSE POINTE MICH MR VITITOE SAID HE COULDN'T BE SPECIFIC ABOUT HIS PLANS AND DECLINED TO COMMENT FURTHER NO SUCCESSOR HAS BEEN NAMED BUT MR VITITOE'S DUTIES TEMPORARILY WILL BE HANDLED BY JAMES F CORDES 53 WHO REMAINS CHAIRMAN OF ANR AND RICHARD A LIETZ WHO COASTAL NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF ANR HE HAD BEEN AN ANR SENIOR VICE PRESIDENT MR LIETZ 48 ASSUMES THE POSTS HELD BY WILLIAM J HAENER 52 WHO WILL WORK ON SPECIAL PROJECTS FOR COASTAL ALSO TIM JANISSE ANR'S DIRECTOR OF TRANSMISSION CAPACITY BROKERING AND DISPATCHING HAS BEEN NAMED VICE PRESIDENT OF COASTAL GAS MARKETING CO'S TRANSPORTATION AND CAPACITY ACQUISITION DIVISION THE COASTAL GAS MARKETING UNIT HANDLES THE COMPANY'S NONREGULATED NATURALGAS MARKETING ACTIVITIES 9311180104 931118 NOTABLE & QUOTABLE ON NOV 13 1979 RONALD REAGAN MADE A NATIONWIDE TELEVISION BROADCAST IN WHICH HE ANNOUNCED HE WOULD RUN FOR PRESIDENT IN 1980 MR REAGAN CALLED FOR A 30 INCOME TAX CUT AN END TO GOVERNMENT ENERGY REGULATIONS AND A FREETRADE ZONE WITH CANADA AND MEXICO WE LIVE ON A CONTINENT WHOSE THREE COUNTRIES POSSESS THE ASSETS TO MAKE IT THE STRONGEST MOST PROSPEROUS AND SELFSUFFICIENT AREA ON EARTH IT IS TIME WE STOPPED THINKING OF OUR NEAREST NEIGHBORS AS FOREIGNERS MY PROPOSED NORTH AMERICAN ACCORD WOULD WORK TOWARD THE GOAL OF USING THE ASSETS OF THIS CONTINENT ITS RESOURCES TECHNOLOGY AND FOODSTUFFS IN THE MOST EFFICIENT WAYS POSSIBLE FOR THE COMMON GOOD OF ALL ITS PEOPLE 9311180103 931118 WHO'S NEWS EXLEHMAN MERGERS STAR HILL TO JOIN BLACKSTONE AS SENIOR INVESTMENT BANKER BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK J TOMILSON HILL A MERGERS STAR OF THE 1980S WHO SUFFERED AN ABRUPT CAREER REVERSAL EARLIER THIS YEAR ANNOUNCED PLANS TO JOIN BLACKSTONE GROUP AS A SENIOR INVESTMENT BANKER MR HILL 45 YEARS OLD ROSE FROM THE HEAD OF MERGERS AT AMERICAN EXPRESS CO'S SHEARSON LEHMAN HUTTON INC UNIT TO BECOME COCHIEF EXECUTIVE OFFICER AT LEHMAN BROTHERS ALL WITH THE BACKING OF JAMES D ROBINSON III THEN CHAIRMAN AT THE PARENT COMPANY BUT AFTER MR ROBINSON WAS OUSTED BY THE AMERICAN EXPRESS BOARD IN JANUARY HIS SUCCESSOR HARVEY GOLUB IN TURN OUSTED MR HILL AS COHEAD OF LEHMAN IN MARCH SAYING THERE WASN'T ANY NEED FOR TWO LEADERS AT ABOUT THE SAME TIME AMERICAN EXPRESS AGREED TO SELL THE SHEARSON RETAILBROKERAGE PART OF THE FIRM TO PRIMERICA CORP SINCE THEN AS MR HILL CONSIDERED HIS OPPORTUNITIES AND SERVED AS A FUNDRAISER AND ADVISER TO MAYORELECT OF NEW YORK RUDOLPH GIULIANI THE MERGER BUSINESS HAS MADE A COMEBACK HIS NEW JOB AS A GENERAL PARTNER AT BLACKSTONE WHICH BEGINS JAN 1 ALLOWS MR HILL TO COMBINE MERGER ADVISORY WORK FOR SUCH CLIENTS AS REVLON GROUP INC AND AMERICAN STORES CO WITH OTHER BLACKSTONE BUSINESSES BLACKSTONE IS A SECURITIES BOUTIQUE SPECIALIZING IN MERGERS AND MERCHANT BANKING AT BLACKSTONE MR HILL WILL SIT ON THE INVESTMENT COMMITTEE FOR THE FIRM'S MERCHANT BANKING FUND WHICH IS BEING EXPANDED TO MORE THAN 1 BILLION IN ASSETS AND MAY ATTEMPT TO TAKE THE FIRM INTO NEW AREAS OF ASSET MANAGEMENT BLACKSTONE IS LED BY TWO FORMER LEHMAN BROTHERS BANKERS PETER G PETERSON AND STEPHEN A SCHWARTZMANN WHO LEFT LEHMAN AT ABOUT THE TIME IT WAS ACQUIRED BY AMERICAN EXPRESS IN THE MID1980S THEY SAID BLACKSTONE HAS BEEN SEEKING TO RECRUIT SENIOR BANKING TALENT SINCE THE DEPARTURE OF ROGER ALTMAN WHO JOINED THE CLINTON ADMINISTRATION AS DEPUTY SECRETARY OF THE TREASURY MR HILL WHO BECAME SHEARSON LEHMAN'S HEAD OF MERGERS IN 1988 IS KNOWN FOR HIS ROLE IN THE TAKEOVER BATTLE FOR RJR NABISCO INC IN WHICH SHEARSON ATTEMPTED TO HELP THENRJR CHAIRMAN ROSS JOHNSON ENGINEER A MANAGEMENT BUYOUT DESPITE HIS JOB AS HEAD OF MERGERS MR HILL HAD TO TAKE A BACK SEAT TO MR ROBINSON AND PETER COHEN SHEARSON CHIEF EXECUTIVE OFFICER AS AN ADVISER ON THE DEAL MR HILL URGED THE SHEARSONJOHNSON TEAM TO JOIN FORCES WITH KOHLBERG KRAVIS ROBERTS & CO TO AVOID A BIDDING WAR BUT HE WAS OVERRULED KKR LATER WON THE BIDDING IN A 25 BILLION DEAL BEFORE HIS OUSTER BY MR GOLUB MR HILL ENGINEERED A LUCRATIVE BUT CONTROVERSIAL PAY PACKAGE FOR LEHMAN EXECUTIVES TIED TO THE FIRM'S PERFORMANCE UNDER WHICH HE HIMSELF RECEIVED MORE THAN 10 MILLION IN COMPENSATION FOR 1992 9311180102 931118 THE HOUSE PASSES NAFTA TRADE WIN HOUSE APPROVES NAFTA PROVIDING PRESIDENT WITH CRUCIAL VICTORY VOTE ALSO PRESERVES CHANCES FOR MORE LIBERALIZATION SUCH AS IN GATT TALKS A NARROW ESCAPE FOR CLINTON BY BOB DAVIS AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S WHEEDLING HORSETRADING AND IMPASSIONED PLEAS FOR AMERICANS TO EMBRACE THE FUTURE SECURED A SURPRISINGLY COMFORTABLE 234200 VICTORY FOR THE NORTH AMERICAN FREE TRADE AGREEMENT AFTER WEEKS OF LEGISLATIVE DRAMA A DIVIDED HOUSE OF REPRESENTATIVES ENDED UP ENDORSING THE ACCORD MORE FOR ITS ECONOMIC AND POLITICAL SYMBOLISM THAN FOR ITS DRY PARTICULARS STILL THE OUTCOME WAS A CRITICAL VICTORY FOR PRESIDENT CLINTON WHOSE ECONOMIC LEADERSHIP HAD BEEN HANGING IN THE BALANCE BOTH AT HOME AND ABROAD BUOYED BY THE WIN MR CLINTON TODAY TRAVELS TO SEATTLE TO MEET WITH LEADERS FROM AROUND ASIA AND SOON WILL BEGIN TO PUSH FOR COMPLETION OF THE SWEEPING BUT CONTROVERSIAL GLOBALTRADE ACCORD BEING THRASHED OUT IN GENEVA UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE FOLLOWING THE VICTORY PRESIDENT CLINTON THANKED THE LAWMAKERS OF BOTH PARTIES FOR VOTING THEIR CONSCIENCES TERMING NAFTA A DEFINING MOMENT FOR OUR NATION MR CLINTON SAID THAT NOTWITHSTANDING ECONOMIC STRAINS THE US DECIDED NOT TO RETREAT IN AN ECONOMY WHERE CHANGE IS THE ONLY CONSTANT MR CLINTON DESCRIBED THE PACT AS JUST THE FIRST STEP ADDING THAT HE WOULD REACH OUT TO OTHER LATIN AMERICAN STATES PUSH FOR MORE OPEN TRADE WITH ASIAN NATIONS AND PUSH THE GATT TALKS HE ALSO CALLED ON THE COALITION THAT SUPPORTED NAFTA TO BACK WORKER TRAINING AND HEALTHCARE REFORM NAFTA NEXT HEADS FOR THE SENATE WHICH COULD TAKE IT UP AS EARLY AS TOMORROW HOWEVER IT WAS THE HOUSE MORE RECEPTIVE TO THE OPPOSITION OF ORGANIZED LABOR AND THE ANTITRADE PROTESTS OF ROSS PEROT LOYALISTS THAT WAS NAFTA'S HURDLE IN CONGRESS THE OUTCOME IS NOT IN DOUBT IN THE SENATE SAID MAJORITY LEADER GEORGE MITCHELL OF MAINE THE DAYLONG HOUSE DEBATE WAS PUNCTUATED WITH REMINDERS OF THE LARGER MEANING THAT NAFTA HAD ASSUMED IN RECENT WEEKS THIS TIME THE WORLD REALLY IS WATCHING WHAT WE DO BECAUSE THE STAKES ARE SO ENORMOUS SAID PRONAFTA REP LEE HAMILTON THE INFLUENTIAL INDIANA DEMOCRAT WHO HEADS THE FOREIGN AFFAIRS COMMITTEE DEFEAT OF THE AGREEMENT WOULD HAVE BEEN INTERPRETED AS A SIGNAL THAT THE US WAS TURNING INWARD ABANDONING ITS 60YEAR LEADERSHIP IN PUSHING THE WORLD TOWARD LIBERAL TRADE THE PASSIONS OF THE LAST TWO MONTHS WERE LITTLE EVIDENT AS THE DEBATE WOUND DOWN THE ADMINISTRATION FINALLY WAS SURE OF VICTORY BY EARLY YESTERDAY AFTERNOON AND THE SPEECHES REFLECTED THE SENSE OF ANTICLIMAX TWO OF THE MOST ARDENT ANTINAFTA DEMOCRATS REPS MARCY KAPTUR OF OHIO AND ROSA DELAURO OF CONNECTICUT WERE MOVED TO TEARS AT POINTS BUT SPEAKERS ON BOTH SIDES COOLLY PAID TRIBUTE TO THEIR RESPECTIVE OPPONENTS HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI THE INTELLECTUAL LEADER OF THE ANTINAFTA SIDE COMPARED THE WELLMANNERED PROCEEDINGS TO THE DEBATE ON AUTHORIZING THE PERSIAN GULF WAR THERE WERE EVEN MOMENTS OF HUMOR AS WHEN HOUSE GOP LEADER ROBERT MICHEL REFERRED TO NAFTA FOES MR PEROT PAT BUCHANAN AND RALPH NADER AS THE GROUCHO CHICO AND HARPO OF NAFTA POLITICS EVEN WITH HIS VICTORY A BURDEN REMAINS FOR MR CLINTON THE PRESIDENT FACES SCATHING CRITICISM OVER THE SPECIALINTEREST DEALS THE WHITE HOUSE HATCHED TO SECURE THE VOTES OF PARTICULAR LAWMAKERS IN ADDITION THE HARDFOUGHT NAFTA BATTLE CREATED AN ENDURING ANTITRADE BLOC OF LABOR UNIONS ENVIRONMENTALISTS AND VARIOUS CONSUMER ACTIVISTS THE COALITION WILL MAKE IT DIFFICULT FOR MR CLINTON TO MOVE ON FROM NAFTA TO PUSH FOR MORE OPEN TRADE WITHIN THE ASIAPACIFIC ECONOMIC COOPERATION GROUP OR IN THE GATT TALKS STILL THE OUTLOOK IN BOTH AREAS WOULD BE CONSIDERABLY GLOOMIER IF NAFTA HAD BEEN KILLED WITH SO MUCH AT STAKE SAID REP PETER HOAGLAND THERE'S A FEELING AMONG MANY OF US THAT NAFTA HAD TO PASS THE NEBRASKA DEMOCRAT WHO AGONIZED BEFORE ANNOUNCING SUPPORT FOR NAFTA JUST LAST WEEK SAID SOME DEMOCRATS CAME TO COMPARE THE DECISION ON NAFTA TO THAT OVER THE LEAGUE OF NATIONS THE REJECTION OF WHICH SIGNALED THE US'S RETREAT INTO ISOLATIONISM DURING THE EARLY 1930S IN MEXICO PRESIDENT CARLOS SALINAS DE GORTARI FACED STAKES THAT WERE IF ANYTHING GREATER THAN THOSE FELT BY MR CLINTON NAFTA IS THE CAPSTONE OF AN AMBITIOUS PROGRAM OF ECONOMIC REBUILDING THAT HAS TURNED MEXICO FROM A DEBTLADEN WRECK TO A FASTMODERNIZING ECONOMY AND THE RECIPIENT OF MUCHO FOREIGN INVESTMENT FOR HIS PART MR CLINTON WILL SEIZE ON THE NAFTA RESULT TO CLAIM THAT GRIDLOCK NO LONGER RULES IN WASHINGTON AND THAT HE AND CONGRESS CAN WORK TOGETHER TO MAKE HARD CHOICES AND IN CONTRAST TO LAST AUGUST'S CLIFFHANGER VOTE FOR HIS ECONOMIC PROGRAM WHICH DIDN'T GET A SINGLE REPUBLICAN YEA MR CLINTON SCORED A NAFTA VICTORY WITH THE MAJORITY OF YES VOTES COMING FROM THE OPPOSITION PARTY REPUBLICANS WHO HOLD 175 SEATS TO DEMOCRATS' 258 THERE'S ONE INDEPENDENT MEMBER AND ONE VACANCY ACCOUNTED FOR 132 OF THE NAFTA VOTES IN CONTRAST 102 DEMOCRATS OR FEWER THAN HALF VOTED FOR NAFTA BUT EVEN THAT NUMBER WAS HIGHER THAN PARTY STRATEGISTS HAD ANTICIPATED AS A CONSEQUENCE OF THE GOP ROLE MR CLINTON SHARES CREDIT FOR THE RESULT WITH HIS PARTY'S NEMESIS NEWT GINGRICH OF GEORGIA THE HOUSE REPUBLICANS' DEPUTY LEADER AND TOP VOTECOUNTER DELIVERED THE SURPRISE OF THE EVENING A DOZEN VOTES MORE THAN EXPECTED IN A STATEMENT PROCEEDING THE VOTE DEMOCRATIC REP ROBERT MATSUI OF CALIFORNIA DECLARED THOSE OF US WHO SUPPORT THE NAFTA DEMOCRATS AND REPUBLICANS FEEL WE'VE REACHED A NEW BEGINNING WITH EACH OTHER BUT IT IS UNLIKELY THAT THE RARE BIPARTISANSHIP AUGURS A NEW ERA OF GOOD FEELINGS IN THE HOUSE ALMOST IMMEDIATELY LAWMAKERS WILL TURN TO THE MOST PARTISAN OF ISSUES DEFICIT REDUCTION AND CAMPAIGN FINANCE BEFORE CONGRESS RECESSES FOR THE YEAR MOREOVER BY THEIR COOPERATION ON NAFTA MR GINGRICH AND HIS FELLOW REPUBLICANS ARE FREER TO FIGHT ON OTHER FRONTS SUCH AS HEALTHCARE REFORM WITH LESS FEAR OF BEING SEEN AS OBSTRUCTIONISTS MEANWHILE SPLINTERING AND RECRIMINATIONS AMONG THE DEMOCRATS POSE EVEN GREATER PROBLEMS FOR THE PRESIDENT GIVEN THE DIVISIONS AND THE RESIDUAL APPREHENSIONS OVER TRADE MR CLINTON MAY SHY AWAY FROM NEW TRADELIBERALIZATION INITIATIVES INDEED HIS GREATEST VICTORY MAY SIMPLY HAVE BEEN TO STAVE OFF A LOSS ON NAFTA IT'S BETTER THAN A DEFEAT OF NAFTA SAID GARY HUFBAUER A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS BUT IT'S NOT A ROSY ROAD TO SUCCESS WHEN IT COMES TO ASIA FOR INSTANCE THERE OFTEN IS A GAP AS WIDE AS THE PACIFIC BETWEEN WHAT THE US SAYS AND HOW IT IS RECEIVED THE ADMINISTRATION VOWS TO REMAIN MILITARILY ENGAGED IN THE REGION BUT ASIAN LEADERS BELIEVE AND FEAR THAT THE US MILITARY PRESENCE WILL SHRINK US EFFORTS TO PROMOTE DEMOCRACY BY EMPHASIZING HUMAN RIGHTS ARE SEEN AS AN ATTEMPT TO IMPOSE WESTERN VALUES ON ASIAN CULTURES IN ADVANCE OF THIS WEEK'S ASIAPACIFIC ECONOMIC COOPERATION MEETING FOR INSTANCE US TRADE REPRESENTATIVE MICKEY KANTOR URGED ASIAN COUNTRIES TO ENDORSE A STATEMENT TO PROD EUROPEAN NEGOTIATORS TO COMPLETE A GLOBALTRADE DEAL A HARMLESS GESTURE BY US STANDARDS BUT THE ASIANS SAW DARKER MOTIVES FEARING THAT THE US WAS TRYING TO PLAY THEM OFF AGAINST EUROPE IN A GAME OF WASHINGTONSTYLE HARDBALL THEY REJECTED THE APPEAL THE APEC SUMMIT IS EXPECTED TO BE LONG ON SYMBOLISM BUT SHORT ON SUBSTANCE MR CLINTON WILL HOST AN INFORMAL MEETING ON SATURDAY WITH OTHER HEADS OF STATE ALONE AND WITHOUT A RETINUE OF AIDES THE KIND OF SETTING MR CLINTON ENJOYS HE WILL USE THE MEETING TO HIGHLIGHT THE ECONOMIC IMPORTANCE OF ASIA TO THE US BUT ASIANS ARE DUBIOUS ABOUT THE US ABILITY TO LEAD NAFTA OR NO NAFTA THERE IS A PERCEPTION OF A WEAKENING AMERICA BECAUSE OF CRIME DRUGS AND EDUCATIONAL PROBLEMS SAYS GASTON SIGUR WHO WAS ASSISTANT SECRETARY OF STATE FOR ASIA DURING THE REAGAN ADMINISTRATION THEY SEE A TENDENCY TOWARDS ISOLATIONISM WITH THE WORLDTRADE TALKS IN GENEVA THE SITUATION IS EVEN STARKER THE PROPOSED DEAL ESSENTIALLY INVOLVES A SWAP BETWEEN RICH NATIONS AND POOR ONES THE US AND EUROPE WOULD OPEN THEIR MARKETS IN AGRICULTURE AND TEXTILES TO DEVELOPING NATIONS IN RETURN THOSE NATIONS WOULD WELCOME WESTERN BANKS INSURERS COMPUTERSERVICE OPERATIONS AND OTHER HIGHTECH BUSINESSES WHILE ALSO AGREEING TO EXTEND PATENT PROTECTION TO WESTERN GOODS A NAFTA DEFEAT MIGHT HAVE SCUTTLED THE GATT ROUND WHICH HAS A DEC 15 DEADLINE BUT DEALS STRUCK IN WASHINGTON TO GAIN PRONAFTA VOTES WILL MAKE IT HARDER TO PULL TOGETHER THE LARGER GATT AGREEMENT FOR EXAMPLE TO WOO LAWMAKERS FROM TEXTILEPRODUCING STATES PRESIDENT CLINTON PLEDGED IN A LETTER TO DO ALL THAT WE CAN TO ACHIEVE THE LONGEST POSSIBLE PHASEOUT OF A COMPLEX QUOTA SYSTEM THAT LIMITS TEXTILE AND APPAREL IMPORTS UNDER PRESIDENT BUSH THE US HAD AGREED TO A 10YEAR PHASEOUT PRESIDENT CLINTON SAID HE WOULD PUSH FOR 15 YEARS INSTEAD IN ADDITION THE PRESIDENT PLEDGED TO STAGE THE TARIFF CUTS OVER A LONGER PERIOD OF TIME AND THE ADMINISTRATION HAD ALREADY AGREED TO SMALLER TARIFF REDUCTIONS THAN MR BUSH HAD PROPOSED CARLOS MOORE EXECUTIVE VICE PRESIDENT OF THE AMERICAN TEXTILE MANUFACTURERS ASSOCIATION SAYS THAT ALL OUR CONCERNS HAVE BEEN ADDRESSED IN THIS LETTER BUT BALKRISHAN ZUTSHI INDIA'S AMBASSADOR TO GATT IS DOWNCAST FROM OUR POINT OF VIEW THIS IS THE MOST ADVERSE DEVELOPMENT THAT COULD TAKE PLACE HE SAYS WHILE MR ZUTSHI SAYS INDIA A BIG TEXTILE PRODUCER WILL CONTINUE NEGOTIATING HE ADDS THAT THE TALKS WILL BE MORE BLOODIED SIMILARLY TRADE EXPERTS EXPECT BRAZIL TO OBJECT TO ANOTHER CLINTON DEAL MADE TO OBTAIN NAFTA VOTES IN FLORIDA THAT ONE CALLS FOR LIMITING TARIFF CUTS ON CITRUS PRODUCTS TO 15 THAT COULD BE COSTLY IN TERMS OF GETTING CONCESSIONS FROM THE BRAZILIANS SAYS JULIUS KATZ A TRADE NEGOTIATOR UNDER PRESIDENT BUSH MOREOVER THE DEALMAKING SENDS AN UNAMBIGUOUS MESSAGE TO FRENCH FARMERS AND OTHER PROTECTIONIST INTERESTS BATTLING GATT HOLD TIGHT BECAUSE PRESIDENT CLINTON IS ALWAYS READY TO BARGAIN ALL THESE SIDE AGREEMENTS SEND A SIGNAL THAT THE US IS AN OPEN BAZAAR SAYS MR HUFBAUER THE STAKES IN THE GATT TALKS ARE IMMENSE THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ESTIMATES THAT A BROAD DEAL IN GENEVA COULD ADD 270 BILLION AN AMOUNT ROUGHLY EQUAL TO MEXICO'S ECONOMY TO THE 30 TRILLION WORLD ECONOMY IN THE YEAR 2002 BUT THIS ROUND OF NEGOTIATIONS HAS BEEN PARTICULARLY VEXING BECAUSE THE GOALS ARE SO AMBITIOUS AND THE NATIONS SO UNWILLING TO MAKE THE NECESSARY COMPROMISES THE ADMINISTRATION TURNED THE TIDE FOR NAFTA ONLY IN THE FINAL DAYS FOR MONTHS THE FOES HAD EFFECTIVELY PLAYED ON AMERICANS' INSECURITIES ABOUT THEIR JOBS AND ON THEIR TENDENCY TO BLAME FOREIGN COMPETITION FOR CURRENT ECONOMIC UNCERTAINTIES INDEED THE NAFTA DEBATE CAME DOWN TO A KIND OF CLASS STRUGGLE WITH THE AMERICAN WORKING PEOPLE ON ONE SIDE AND THE BUSINESS AND POLITICAL ESTABLISHMENT ON THE OTHER JUST BEFORE LAST NIGHT'S VOTE REP GEPHARDT MADE AN IMPASSIONED PLEA NOT TO APPROVE A TREATY THAT ONLY PROTECTS THE RIGHTS OF BUSINESS BUT DOESN'T PROTECT THE RIGHTS OF WORKERS BUT THE ESTABLISHMENT ARGUMENTS CARRIED THE DAY WITH FORMER PRESIDENTS AND BUSINESS LEADERS ARGUING THAT NAFTA WOULD BE A PLUS FOR THE US ECONOMY EVEN IF SOME JOBS WERE LOST TO MEXICO THE ADMINISTRATION'S BIGGEST GAMBLE CAME IN LAST WEEK'S TELEVISED FACEOFF BETWEEN VICE PRESIDENT GORE SCION OF A POLITICALLY POWERFUL FAMILY AND NAFTABASHER MR PEROT MR PEROT CAME OFF AS WHINING AND FRETFUL WHILE MR GORE HELD UP THE TRADE DEAL AS A SYMBOL OF THE NATION'S ECONOMIC CONFIDENCE THE VOTEGETTING WAS EASIER FOR REPUBLICANS FOR WHOM FREE TRADE HAS BEEN AN ISSUE OF PARTY ORTHODOXY SINCE WORLD WAR II WITH ORGANIZED LABOR FIGHTING THE TRADE PACT THE DEMOCRATS WERE TORN BUT SIGNIFICANT SIGNS EMERGED THAT EVEN OLDERGENERATION DEMOCRATS SAW NAFTA AS A FORK IN THE ROAD THE OLD SOLUTIONS TO UNEMPLOYMENT HAVE NOT WORKED SAID 67YEAROLD REP CARRIE MEEK WHO REPRESENTS SOME OF MIAMI'S POOREST BLACK NEIGHBORHOODS THE TIME HAS COME TO TAKE A BOLD STEP FORWARD INTERNATIONAL TRADE IS THE KEY TO REVITALIZING OUR ECONOMY MEANWHILE THE ADMINISTRATION EMBARKED ON A FRENZY OF DEALCUTTING TO WIN HESITANT VOTES A TACTIC THAT HAS CREATED ENDURING ILL WILL IN SOME CORNERS SOME OF US ARE NOT UP FOR SALE SAID DEMOCRATIC REP JOHN LEWIS OF GEORGIA A ONETIME CIVILRIGHTS HERO WHO WATCHED IN DISMAY AS SEVERAL FELLOW MEMBERS OF THE BLACK CAUCUS SWITCHED TO THE PRESIDENT'S POSITION A NUMBER OF THE DEALS WERE PECULIAR TO NAFTA WITH TRADE CONCESSIONS MADE FOR A SHOPPING LIST OF US GOODS THAT INCLUDED CITRUS TOMATOES DURUM WHEAT PEANUTS FLAT GLASS BROOMCORN BROOMS AND HOME APPLIANCES OTHERS WERE OF THE MORE TRADITIONAL LOGROLLING REP FLOYD FLAKE A NEW YORK DEMOCRAT ACKNOWLEDGED THAT HE HOPED TO GET A SMALL BUSINESS ADMINISTRATION PROJECT IN HIS IMPOVERISHED DISTRICT FOR EXAMPLE BUT ONE SUCH MOVE APPARENTLY BACKFIRED DEMOCRATIC REP NORMAN SISISKY ANGRY AT REPORTS THAT HE HAD SOUGHT AN AIRCRAFT CARRIER FOR THE SHIPYARD IN HIS VIRGINIA DISTRICT CONFIRMED HIS OPPOSITION TO NAFTA EARLY YESTERDAY LEE IACOCCA CONSCRIPTED BY THE WHITE HOUSE AS A NAFTA BOOSTER GOT INVOLVED IN ONE OF THE MOST UNUSUAL DEALS LOBBYING IN REP CLAY SHAW'S OFFICE HE TELEPHONED MEXICAN PRESIDENT SALINAS AND WON ASSURANCE THAT MEXICO WOULD SEEK TO ARREST AND EXTRADITE A MEXICAN MAN ACCUSED OF SEXUALLY ABUSING THE YOUNG NIECE OF THE FLORIDA REPUBLICAN'S SECRETARY REP SHAW THEN AGREED TO SUPPORT NAFTA ONE KEY TO THE SUCCESS OF THE WHITE HOUSE EFFORT ON NAFTA WAS THE WAY CLINTON AIDES REACHED OUT TO OLD REPUBLICAN HANDS FOR ADVICE AND ASSISTANCE LAST FRIDAY MORNING FOR EXAMPLE WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY HOSTED A MEETING IN THE ROOSEVELT ROOM THAT INCLUDED SUCH FORMER REPUBLICAN WHITE HOUSE AIDES NOW CORPORATE LOBBYISTS AS KENNETH DUBERSTEIN RICH BOND CRAIG FULLER AND ALAN KRANOWITZ ALSO THERE WAS HOUSE GOP AIDE WILLIAM PITTS FROM THE CLINTON ADMINISTRATION CAME TOP WHITE HOUSE LOBBYIST HOWARD PASTER WHITE HOUSE COUNSELOR DAVID GERGEN AND MR KANTOR THE TRADE REPRESENTATIVE FORMER PRESIDENTS NIXON REAGAN AND BUSH ALL WERE GIVEN REPUBLICANS' NAMES TO CALL MR BUSH WHO ORIGINALLY NEGOTIATED NAFTA MADE HIS CALLS FROM HONG KONG NAFTA'S OPPONENTS ARGUED THAT LAWMAKERS WERE COURTING VOTER OUTRAGE BY SUPPORTING THE TRADE DEAL THEY'RE GONNA THROW YOUR BUTTS OUTTA HERE CHIDED NEW YORK REP GERALD SOLOMON AN ANTINAFTA LEADER ON THE REPUBLICAN SIDE BUT OTHER ARGUMENTS SWAYED SOME 11THHOUR CONVERTS TO NAFTA INCLUDING NEW YORK GOP FRESHMEN REPS DAVID LEVY AND RICK LAZIO IT REALLY COMES DOWN TO WHETHER IT'S MORE IMPORTANT TO SAVE YOUR POLITICAL HIDE OR DO YOUR DUTY REP LAZIO SAID MOST OF THE ANTINAFTA PEOPLE I TALKED TO RAISED POLITICAL REASONS AND THAT TELLS YOU A LOT WE HAVE TO DECIDE WHETHER WE'RE GOING TO PARTICIPATE IN A GLOBAL ECONOMY OR TURN OUR BACKS ROBERT S GREENBERGER LAWRENCE INGRASSIA AND JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9311180100 931118 HEARD ON THE STREET MINNESOTAN WINS BIG WITH GROWTH STOCKS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL MINNESOTA MONEY MANAGER LEE KOPP KEEPS HITTING THE BALL OUT OF THE PARK AND LATELY HE HAS BEEN DOING IT AGAINST THE WIND MR KOPP RANKS NO 1 IN STOCK PICKING AMONG HUNDREDS OF MONEY MANAGERS TRACKED BY CDA INVESTMENT TECHNOLOGIES FOR THE 12 MONTHS THROUGH SEPTEMBER WITH AN ESTIMATED 113 GAIN A 59YEAROLD FORMER STOCKBROKER WHOSE COMPETITIVE DRIVE IS BARELY VISIBLE EXCEPT ON THE TENNIS COURT HE DID WELL IN 1991 AND 1992 TOO BUT THIS YEAR IS MORE REMARKABLE BECAUSE IT'S A TOUGH YEAR FOR GROWTH STOCKS MR KOPP'S STRONG SUIT SO HOW DOES HE DO IT A HEAVY BET ON THE HOT TELECOMMUNICATIONS STOCKS HELPED SO DID AN EMPHASIS ON MIDWEST COMPANIES WHOSE MANAGEMENTS HE KNOWS WELL MR KOPP IS FROM EDINA A SUBURB OF MINNEAPOLIS MANY OTHER HIGHLY REGARDED GROWTHSTOCK MANAGERS ARE HAVING YEARS THEY WOULD JUST AS SOON FORGET ROGER ENGEMANN'S PASADENA GROWTH FUND WAS DOWN 04 THROUGH SEPTEMBER FAYEZ SAROFIM'S DREYFUS APPRECIATION FUND FELL 11 AND FRANKLIN RISING DIVIDEND FUND SLIPPED 34 BUT MR KOPP IS UP 57 HE LIKES TO BUY STOCKS OF SMALL FASTGROWING COMPANIES BEFORE THEY'RE WIDELY DISCOVERED THEN HANG ON FOR THREE TO FIVE YEARS A TYPICAL CLIENT'S PORTFOLIO HAS ONLY ABOUT 20 STOCKS SO EVERY PICK COUNTS FOUR OF HIS FIVE BIGGEST HOLDINGS ARE IN TELECOMMUNICATIONS AN AREA WHERE HE EXPECTS EARNINGS TO GROW 15 TO 20 A YEAR FOR THE NEXT FEW YEARS HIS BIGGEST POSITION IS DIGITAL MICROWAVE A SAN JOSE CALIF MAKER OF EQUIPMENT USED IN WIRELESS TRANSMISSIONS ESPECIALLY CELLULAR MOBILEPHONE SERVICE THE STOCK CLOSED ON THE NASDAQ STOCK MARKET YESTERDAY AT 25 1/2 UP 3/8 MR KOPP HOLDS MORE THAN THREE MILLION SHARES WITH AN AVERAGE COST OF 1180 ABOUT 90 OF DIGITAL MICROWAVE'S BUSINESS IS INTERNATIONAL IN SUCH COUNTRIES AS BRITAIN MEXICO MALAYSIA GERMANY AND POLAND THAT'S JUST FINE WITH MR KOPP HE THINKS DEMAND FOR WIRELESS COMMUNICATIONS EQUIPMENT WILL GROW FAST IN THE US BUT EVEN FASTER ABROAD JUST YESTERDAY DIGITAL MICROWAVE ANNOUNCED THAT IT AND SIEMENS AG WERE AWARDED AN 88 MILLION CONTRACT IN GERMANY WHEN HE FIRST BOUGHT THE STOCK IT WAS NOT FOLLOWED BY WALL STREET HE SAYS HE AND HIS COLLEAGUE SALLY ANDERSON ARE ANXIOUS TO FIND COMPANIES FOLLOWED BY ONLY ONE TWO OR THREE ANALYSTS NOT THE FLEET OF 40 OR SO TRACKING BIGGER MORE ESTABLISHED COMPANIES HIS SECONDBIGGEST HOLDING IS TELLABS A LISLE ILL MAKER OF SEVERAL KINDS OF TELECOMMUNICATIONS EQUIPMENT THE COMPANY'S HOTTEST PRODUCT IS THE TITAN A LARGE DIGITAL SWITCHING SYSTEM USED BY THE REGIONAL BELL OPERATING COMPANIES AND OTHER CUSTOMERS TELLABS HAS AN AGREEMENT WITH NORTHERN TELECOM TO MARKET THE TITAN IN CANADA IN THE US TELLABS MARKETS THE SYSTEM ITSELF MR KOPP BECAME ACQUAINTED WITH TELLABS IN THE LATE 1980S WHEN HE WAS A BROKER HE WORKED FOR DAIN BOSWORTH FOR 30 YEARS BEFORE STARTING HIS OWN FIRM THREE YEARS AGO ONE THING THAT IMPRESSED HIM WAS THE COMPANY'S HEAVY SPENDING ON RESEARCH AND DEVELOPMENT A MUST FOR A TECHNOLOGY COMPANY HE SAYS HE HAS VISITED MANAGEMENT TWICE AND SPEAKS OFTEN WITH TOP MANAGERS ON THE PHONE MR KOPP GOT INTERESTED IN TELLABS BY LISTENING TO ITS COMPETITORS HE ALWAYS ASKS COMPANIES ABOUT OTHER FIRMS THAT THEY RESPECT OR THAT POSE A STIFF COMPETITIVE THREAT SOME PEOPLE CLAM UP AT THAT POINT BUT MANY TALK CANDIDLY SEVERAL OF HIS BEST INVESTMENT IDEAS HAVE COME FROM THAT CHANNEL HE SAYS MR KOPP HOLDS MORE THAN A MILLION SHARES OF TELLABS WHICH HE STARTED BUYING THREE YEARS AGO AT 10 THE NASDAQ STOCK TOOK A HIT YESTERDAY FALLING 4 1/2 TO 63 1/2 MR KOPP OFTEN SHRUGS OFF SUCH TURBULENCE HIS ANNUAL TURNOVER IS ONLY ABOUT 30 OF THE PORTFOLIO HE USED THE DECLINE TO BUY MORE SHARES THE COMPANY SAID IT DIDN'T KNOW OF ANY REASON FOR THE DECLINE BUT NOTED THAT STOCKS OF COMPETITORS ALSO FELL MANY STOCKS MR KOPP FAVORS AREN'T CHEAP DIGITAL MICROWAVE SELLS FOR 140 TIMES THE PAST 12 MONTHS' EARNINGS AND 30 TIMES ESTIMATED 1994 EARNINGS TELLABS SELLS FOR 36 TIMES TRAILING EARNINGS AND 25 TIMES NEXT YEAR'S ESTIMATES WE WOULD PREFER TO BUY IN THE AREA OF 15 TO 20 TIMES EARNINGS MR KOPP SAYS SOME COMPANIES WE'RE LOOKING AT ARE GROWING 25 A YEAR AND WE'RE WILLING TO PAY UP IF WE FEEL THE POTENTIAL IS THERE HE SAYS HE RARELY PAYS MORE THAN 25 TIMES ESTIMATED EARNINGS FOR THE COMING YEAR AND ALMOST NEVER MORE THAN 35 TIMES ESTIMATED EARNINGS NOR DOES HE BUY COMPANIES THAT HAVE BEEN IN THE LIMELIGHT SUCH AS SNAPPLE BEVERAGE BOSTON CHICKEN OR MICROSOFT MR KOPP ALMOST NEVER BUYS INITIAL PUBLIC OFFERINGS WE LIKE TO HAVE A COMPANY BE WEATHERED FOR A WHILE HE SAYS BESIDES ON THE REALLY GOOD DEALS YOU CAN'T GET ANY SHARES TO SPEAK OF ON THE MEDIOCRE DEALS YOU HAVE SIX OR SEVEN BROKERS CALLING TO TRY TO SELL YOU A PIECE NOT ALL OF MR KOPP'S FAVORITES ARE TELECOMMUNICATIONS COMPANIES HE IS VERY ENTHUSIASTIC ABOUT EMPI A MAKER OF BIOMEDICAL AND DIAGNOSTIC DEVICES BASED IN NEARBY ST PAUL HE ENVISIONS LARGE POTENTIAL IN A PRODUCT EMPI IS DEVELOPING THAT IS INTENDED TO STRENGTHEN THE PELVIC MUSCLES IN WOMEN WHO SUFFER FROM INCONTINENCE THUS REDUCING THE PROBLEM INCONTINENCE IS A PROBLEM THAT IS OFTEN NOT TALKED ABOUT BUT IS TRULY A MAJOR PROBLEM IN THIS COUNTRY AND THROUGHOUT THE WORLD HE SAYS EMPI IS ALSO A LEADING MAKER OF SOCALLED TENS DEVICES THE INITIALS STAND FOR TRANSCUTANEOUS ELECTRIC NERVE STIMULATION AND THE DEVICES ARE AN ALTERNATIVE TO DRUGS AND SURGERY IN REDUCING AND RELIEVING CHRONIC PAIN MR KOPP SAYS THE COMPANY'S REVENUE LAST YEAR WAS 334 MILLION MR KOPP EXPECTS 67 MILLION THIS YEAR AND MORE THAN 85 MILLION IN 1994 LATELY MR KOPP HAS BEEN ACCUMULATING SHARES IN PICTURETEL A DANVERS MASS COMPANY THAT PRODUCES TELECONFERENCING EQUIPMENT THIS IS AN AREA THAT WE THINK HAS GREAT APPEAL HE SAYS THE MARKET THEY'RE ATTEMPTING TO SERVE IS VERY VERY LARGE HE PROJECTS PICTURETEL'S SALES WILL RISE TO 246 MILLION NEXT YEAR FROM ABOUT 179 MILLION THIS YEAR BUT MR KOPP DOESN'T LIMIT HIMSELF STRICTLY TO SMALL STOCKS LATELY HE HAS BEEN NIBBLING AT BROWNING FERRIS THE OUTOFFAVOR WASTEDISPOSAL COMPANY THERE'S A COMPANY NO ONE REALLY CARES ABOUT RIGHT NOW HE SAYS IT MAY BE A YEAR EARLY BUT WE ALWAYS TRY TO BE A YEAR EARLY AT THE START OF THIS YEAR KOPP INVESTMENT ADVISORS WAS MANAGING ABOUT 200 MILLION MOSTLY FOR WEALTHY INDIVIDUALS TODAY IT'S 880 MILLION AND THE PENSION FUNDS ARE LINING UP AT THE DOOR IN TWO WEEKS MR KOPP WILL RAISE THE MINIMUM INVESTMENT TO 1 MILLION THE MORE DARING ACCOUNTS AT KOPP INVESTMENT ADVISORS ARE UP 293 SINCE MR KOPP OPENED HIS DOORS IN MID1990 WE CAN'T BELIEVE IT OURSELVES HE SAYS AN ANNUAL RETURN OF 15 TO 20 REALLY IS OUR GOAL 9311180099 931118 WHO'S NEWS MAPLE LEAF FOODS INC MAPLE LEAF FOODS INC TORONTO G BRENT BALLANTYNE 51 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FOODPROCESSING CONCERN SUCCEEDING CHARLES BOWEN WHO RESIGNED IN JULY TO ACCEPT A TOP EXECUTIVE POSITION WITH A BRITISH FOOD COMPANY MR BALLANTYNE HAS SERVED AS MAPLE LEAF'S CHIEF OPERATING OFFICER SINCE MR BOWEN'S RESIGNATION PREVIOUSLY MR BALLANTYNE HEADED THE COMPANY'S AGRIBUSINESS OPERATION MAPLE LEAF WHICH IS 56OWNED BY HILLSDOWN HOLDINGS PLC OF BRITAIN SAID IT WON'T NAME A NEW CHIEF OPERATING OFFICER 9311180098 931118 LAW LEGAL BEAT COURT REFUSES TO IDENTIFY JUDGES IN VEXATIOUS LITIGANT LAWSUITS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL APPEALS COURT HAS TAKEN AN UNUSUAL APPROACH TO HANDLING LAWSUITS BY PEOPLE ACCUSED OF ABUSING THE COURT SYSTEM ASSIGNING AN UNIDENTIFIED JUDGE TO DECIDE WHETHER THE COURT WILL HEAR THE MATTER FRUSTRATED WITH INCREASING COURT DOCKETS JUDGES AROUND THE COUNTRY HAVE TAKEN SPECIAL STEPS TO DETER SUITS BY SOCALLED VEXATIOUS LITIGANTS AND TO PROTECT COURT OFFICIALS BUT THE POLICY ADOPTED BY THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK HAS RAISED CONCERN AMONG SOME CIVIL LIBERTARIANS WHO QUESTION WHETHER ANONYMOUS JUDGES SHOULD HAVE ANY ROLE IN THE JUDICIAL SYSTEM IT IS A BAD PRECEDENT FOR A FREE SOCIETY SAID HARVEY SILVERGLATE OF THE BOSTON LAW FIRM SILVERGLATE & GOOD ONCE YOU BREACH THE PRINCIPLE EVEN IN THE CASE OF A GUY WHO REALLY IS A PARANOID VEXATIOUS LITIGANT THE EXCEPTION WILL GROW AND GROW THE SECOND CIRCUIT'S POLICY CAME TO LIGHT EARLIER THIS MONTH IN A DECISION REJECTING TWO REQUESTS TO IDENTIFY THE JUDGES DECIDING SUCH MATTERS THE REQUESTS WERE MADE BY TWO MEN CONSIDERED VEXATIOUS LITIGANTS BY THE COURT THE APPEALS COURT SAID IN ITS RULING THAT THE POLICY WAS A REASONABLE RESPONSE TO THE HARASSING ABUSE OF THE LITIGATION PROCESS THE RULING WRITTEN BY SECOND CIRCUIT CHIEF JUDGE JON NEWMAN SAID MAINTAINING CONFIDENTIALITY CONCERNING THE IDENTITY OF THE JUDGE IS A REASONABLE PRECAUTION NECESSITATED BY THE UNFORTUNATE TENDENCY OF SOME VEXATIOUS LITIGANTS TO DIRECT THEIR HARASSING TACTICS PERSONALLY AT THE JUDGES WHOSE RULINGS DISPLEASE THEM THE REQUESTS TO IDENTIFY THE JUDGES WERE MADE BY ANTHONY R MARTIN OF PALM BEACH FLA AND GEORGE SASSOWER OF WHITE PLAINS NY THE COURT SAID IN ITS RULING THAT THE TWO MEN WHO REPRESENT THEMSELVES IN COURT HAD SHOWN AN EXTRAORDINARY PATTERN OF VEXATIOUS AND HARASSING LITIGATION PURSUED OVER SEVERAL YEARS ALTHOUGH COURTS CAN SANCTION PEOPLE FOR FILING FRIVOLOUS LAWSUITS SUCH SANCTIONS AREN'T ALWAYS ENOUGH THE APPEALS COURT SAID THE COURT SAID THAT FOR SOME PEOPLE IT IS NECESSARY TO CRAFT SPECIAL ARRANGEMENTS THAT IMPOSE SEVERE LIMITATIONS ON THE OPPORTUNITY OF SUCH INDIVIDUALS TO PURSUE THEIR PENCHANT FOR VEXATIOUS LITIGATION THE RULING EXPLAINED HOW THE POLICY WORKS AN UNIDENTIFIED JUDGE IS ASSIGNED TO EACH VEXATIOUS LITIGANT WHO HAS BEEN SANCTIONED PREVIOUSLY BY THE COURT TO FILE ANY MOTION WITH THE APPEALS COURT THE PERSON MUST GET PERMISSION FROM THAT JUDGE IF THE JUDGE DENIES THE REQUEST NO APPEAL OF THAT DECISION CAN BE MADE BECAUSE IT IS TREATED AS AN UNAPPEALABLE PROCEDURAL MATTER THE COURT ALSO DECLINED TO EXPLAIN HOW A JUDGE IS ASSIGNED TO A PARTICULAR LITIGANT SEVERAL PEOPLE CURRENTLY ARE CONSIDERED VEXATIOUS LITIGANTS BY THE APPEALS COURT AND EACH HAS AN ASSIGNED JUDGE THE COURT SAID THAT SENDING ALL OF ONE PERSON'S REQUESTS TO A PARTICULAR JUDGE MAKES IT EASIER TO RULE ON THE VALIDITY OF THE MOTIONS IF THE JUDGE PERMITS THE MOTION TO BE FILED IT THEN WOULD GO BEFORE A THREEJUDGE PANEL JUST AS OTHER MATTERS ARE HANDLED MANY COURTS REQUIRE SIMILAR PREAPPROVAL FOR MOTIONS FILED BY VEXATIOUS LITIGANTS BUT THE USE OF UNIDENTIFIED JUDGES IS UNUSUAL LAWYERS SAID ALTHOUGH THE COURT SAID IT IS CONCERNED ABOUT PROTECTING JUDGES FROM HARASSING LITIGATION THOSE WORRIES ARE EXAGGERATED SOME LAWYERS SAID JUDGES HAVE ABSOLUTE JUDICIAL IMMUNITY IN CASES LIKE THAT MR SILVERGLATE SAID IN EXCHANGE FOR IMMUNITY THE LEAST JUDGES COULD DO IS USE THEIR REAL NAMES THE JUDGES' CONCERNS ARE UNDERSTANDABLE SAID ALAN DERSHOWITZ HARVARD LAW SCHOOL PROFESSOR BUT IT IS TOTALLY ANTAGONISTIC TO THE AMERICAN JUSTICE SYSTEM TO HAVE AN ANONYMOUS JUDGE MR DERSHOWITZ SAID THE USE OF UNIDENTIFIED JUDGES RAISES THE POSSIBILITY THAT CONFLICTS OF INTEREST OR OTHER BIASES COULD GO UNDETECTED TO ILLUSTRATE THE NEED TO PROTECT THE IDENTITY OF THE JUDGES THE APPEALS COURT CITED WHAT IT CALLED AN OUTRAGEOUS ACTION TAKEN BY MR MARTIN TO GET BACK AT A FEDERAL JUDGE WHOSE RULINGS DISPLEASED HIM THE COURT SAID MR MARTIN HAD SOUGHT TO INTERVENE IN THE JUDGE'S DIVORCE CASE AND TO HAVE HIMSELF APPOINTED THE GUARDIAN OF THE JUDGE'S MINOR CHILDREN MR MARTIN IN A TELEPHONE INTERVIEW SAID THE RULING'S DESCRIPTION OF THE DIVORCECASE ACTION WAS MISLEADING AND THAT JUDGE NEWMAN WHO WROTE THE OPINION HAS A PERSONAL VENDETTA AGAINST HIM BECAUSE OF PREVIOUS ACTIONS HE HAS TAKEN MR MARTIN SAID HE IS PREPARING TO ASK THE FULL APPEALS COURT TO REVIEW THE THREEJUDGE PANEL'S DECISION IT IS THE FIRST TIME ANYONE IN HISTORY HAS TRIED TO CREATE A SECRET COURT HE SAID A JUDGE IN WINNEBAGO COUNTY WIS CIRCUIT COURT HAS GRANTED A REQUEST BY KIMBERLYCLARK CORP FOR A TEMPORARY RESTRAINING ORDER BARRING AN EXECUTIVE FROM JOINING RIVAL JOHNSON & JOHNSON KIMBERLYCLARK BASED IN DALLAS HAS SUED THE EXECUTIVE ROBERT E KIRBY CLAIMING THAT IF HE JOINS J&J HE WILL INTENTIONALLY OR UNINTENTIONALLY PASS ALONG TRADE SECRETS TO A COMPETITOR THUS VIOLATING A CONFIDENTIALITY AGREEMENT THE SUIT ASKS THE COURT TO STOP MR KIRBY FROM WORKING FOR OR IMPARTING TRADE SECRETS TO J&J OR ANY OTHER MAKER OF FEMININE CARE AND ADULT INCONTINENCE PRODUCTS THE 37YEAROLD MR KIRBY HAS BEEN VICE PRESIDENT OF RESEARCH FOR KIMBERLYCLARK'S HOUSEHOLD PRODUCTS UNIT AND DIRECTOR OF RESEARCH IN ITS FEMININE CARE UNIT ON OCT 21 MR KIRBY ANNOUNCED HIS PLAN TO QUIT KIMBERLYCLARK AFTER NINE YEARS TO BECOME VICE PRESIDENT OF RESEARCH AND DEVELOPMENT FOR J&J'S PERSONAL PRODUCTS UNIT KIMBERLYCLARK AND J&J WHICH IS BASED IN NEW BRUNSWICK NJ COMPETE IN THE FEMININE CARE AND ADULT INCONTINENCE MARKETS MR KIRBY AND HIS ATTORNEY COULDN'T BE REACHED FOR COMMENT J&J HAD NO COMMENT KIMBERLYCLARK'S ACTION IS ONE OF A SPATE OF NONCOMPETITION LAWSUITS FILED IN RECENT MONTHS BY COMPANIES CONCERNED ABOUT PROTECTING TRADE SECRETS BUT THIS SUIT HAS A SLIGHTLY PERSONAL EDGE TO IT AS WELL MR KIRBY'S BOSS AT J&J WOULD BE PETER LARSON A FORMER KIMBERLYCLARK EXECUTIVE VICE PRESIDENT AND BOARD MEMBER WHO QUIT IN 1988 WHEN IT BECAME APPARENT HE WASN'T IN LINE FOR THE TOP JOB WHICH EVENTUALLY WENT TO WAYNE SANDERS MR LARSON EVENTUALLY REJOINED J&J WHERE HE HAD WORKED BEFORE JOINING KIMBERLYCLARK AND IS CHAIRMAN OF THE CONSUMER SECTOR KIMBERLYCLARK'S SUIT SAYS MR KIRBY IS INTIMATELY FAMILIAR WITH A NUMBER OF FEMININE CARE PRODUCTS THAT THE COMPANY WILL INTRODUCE WITHIN THE NEXT THREE YEARS IT IS VIRTUALLY CERTAIN THAT HE WILL INEVITABLY USE HIS INFORMATION CONCERNING PRODUCTS PRESENTLY UNDER DEVELOPMENT BY KIMBERLYCLARK EITHER CONSCIOUSLY OR UNCONSCIOUSLY TO ASSIST J&J IN BEATING KIMBERLYCLARK TO MARKET THE SUIT SAYS MOST DOCUMENTS FILED IN THE CASE HAVE BEEN SEALED BY THE COURT BECAUSE THEY DISCUSS TRADE SECRETS IN ISSUING THE RESTRAINING ORDER JUDGE THOMAS S WILLIAMS SAID THAT IF MR KIRBY JOINS J&J THERE IS A REASONABLE PROBABILITY THAT HE WILL IMMEDIATELY THEREAFTER USE AND DISCLOSE INFORMATION CONCERNING TRADE SECRETS BELONGING TO KIMBERLYCLARK THE JUDGE ALSO SAID THAT KIMBERLYCLARK PRESENTED A SUFFICIENT SHOWING OF IMMEDIATE AND IRREPARABLE INJURY MR KIRBY IS BARRED FROM JOINING J&J AT LEAST UNTIL A DEC 1 HEARING ON KIMBERLYCLARK'S REQUEST FOR A PRELIMINARY INJUNCTION UNTIL THEN KIMBERLYCLARK IS TO CONTINUE PAYING MR KIRBY'S SALARY GABRIELLA STERN CONTRIBUTED TO THIS ARTICLE 9311180097 931118 CAE UNIT RECEIVES CONTRACT TORONTO CAE INC SAID ITS CAE ELECTRONICS UNIT RECEIVED A CONTRACT TO SUPPLY A BOEING 747400 FULLFLIGHT SIMULATOR AND A MAXVUE VISUAL SYSTEM TO ASIANA AIRLINES OF SOUTH KOREA TERMS OF THE PACT WEREN'T DISCLOSED CAE A SUPPLIER OF SIMULATION AND TRAINING EQUIPMENT FOR THE AIRLINE INDUSTRY SAID THE ORDER IS THE COMPANY'S FIRST FROM THE SOUTH KOREAN AIRLINE THE SIMULATOR IS SCHEDULED FOR DELIVERY IN LATE 1994 9311180096 931118 INTERNATIONAL JAPAN'S GROWTH MAY STAY SLOW DESPITE TAX CUT EXECUTIVES INVESTORS URGE MORE ACTION BY TOKYO CLINTON APPLIES PRESSURE BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE CLINTON ADMINISTRATION IS LEANING ON JAPAN TO BOOST ITS SLUMPING ECONOMY AND ITS APPETITE FOR IMPORTS BY CUTTING INCOME TAXES BUT WASHINGTON HAD BETTER NOT GET ITS HOPES UP TOO HIGH THE REDUCTIONS BEING DISCUSSED IN TOKYO WOULD BUMP UP DEMAND BUT PROBABLY NOT ENOUGH TO RETURN JAPAN'S ECONOMY TO THE FAST TRACK ECONOMISTS SAY AS PRESIDENT CLINTON PREPARES TO MEET JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA TOMORROW IN SEATTLE TOKYO IS LAYING THE GROUNDWORK FOR AN INCOMETAX CUT OF FIVE TRILLION YEN 468 BILLION OR MORE TO OFFSET THE LOSS IN REVENUE THE POWERFUL FINANCE MINISTRY WOULD SEEK TO RAISE THE NATIONAL CONSUMPTIONTAX RATE TO SOMEWHERE BETWEEN 5 AND 7 FROM 3 AT PRESENT AFTER A LAG OF ONE TO THREE YEARS A GOVERNMENT ADVISORY PANEL WILL RECOMMEND TOMORROW THAT JAPAN CUT INCOME TAXES AND RAISE THE CONSUMPTION LEVY WHILE FINANCE MINISTRY OFFICIALS SAY SPECIFICS WON'T BE DETERMINED UNTIL NEXT MONTH THE FIVE TRILLION YEN FIGURE IS CIRCULATING HERE AS A LIKELY TARGET THOUGH MANY PEOPLE EXPECT IT TO RISE A TAX CUT WOULD FOLLOW PLENTY OF JAWBONING BOTH IN TOKYO AND ON CAPITOL HILL ABOUT THE NEED FOR MEASURES TO STIMULATE JAPAN'S ECONOMY MANY JAPANESE BUSINESSMEN AND INVESTORS SAY EVEN GREATER INCOMETAX CUTS ARE REQUIRED SOME FAVOR A REDUCTION OF AS MUCH AS 10 TRILLION YEN AND A LONG GRACE PERIOD BEFORE THE HIGHER SALES TAX KICKS IN THE TIGHTFISTED FINANCE MINISTRY MAY WELL COMPROMISE IF AS IS LIKELY MORE BEARISH ECONOMIC NEWS POURS FORTH IN THE WEEKS AHEAD POLITICAL ANALYST TAKAYOSHI MIYAGAWA SAYS A CUT OF SEVEN TRILLION YEN SOUNDS FEASIBLE ON PAPER EVEN A FIVE TRILLION YEN TAX REDUCTION IS NOTHING TO SNEEZE AT THE INDUSTRIAL BANK OF JAPAN ESTIMATES THAT SUCH A CUT WOULD BOOST DEMAND FOR IMPORTS BY 08 AND ADD 1 TO CONSUMPTION THAT SAID MOST ECONOMISTS EXPECT WEAK GROWTH IN 1994 EVEN FACTORING IN A FIVE TRILLION YEN TAX CUT JESPER KOLL OF SG WARBURG EXPECTS JAPAN'S GROSS NATIONAL PRODUCT TO RISE JUST 05 FOR THE YEAR A BIGGER TAX CUT WOULD IMPROVE THE PICTURE BUT NOT MUCH BY ONE RELATIVELY OPTIMISTIC CALCULATION AN EXTRA TWO TRILLION YEN IN TAX CUTS WOULD ADD ANOTHER 04 TO THE NATION'S GNP MANY ECONOMISTS FIGURE THAT AS JAPANESE COMPANIES CONTINUE TO ANNOUNCE JOB REDUCTIONS AND PAY CUTS SKITTISH CONSUMERS WILL OPT TO SOCK AWAY MUCH OF THEIR TAX BREAK AND OUT ON THE STREET THAT IS WHAT PEOPLE SAY AS WELL SAVING THE MONEY I'LL SAVE THE MONEY SAYS 26YEAROLD TAKESHI KOBAYASHI WHO WORKS FOR A TRADING COMPANY MY SALARY IS DROPPING AND MY WINTER BONUS PAYMENT THIS YEAR WILL FALL TOO KATSUYUKI HONAKA 49 DOUBTS THAT THE TAX CHANGES WOULD HELP HIM MUCH AT MY ANNUAL INCOME THE EXTRA MONEY FROM A TAX CUT WOULD JUST PAY FOR A CUP OF SAKE AT A BAR SAYS MR HONAKA WHO SAYS HE MAKES SEVEN MILLION YEN A YEAR AND THE CONSUMPTION TAX IS EXPECTED TO GO UP SO THERE'S NO GUARANTEE THAT WE'LL GET ADDITIONAL MONEY AT ALL THE IDEA OF BOOSTING LEVIES ON CONSUMPTION ALTHOUGH UNPOPULAR HASN'T STIRRED UP MUCH CONTROVERSY YET IF INCOME TAXES ARE TRIMMED HIGHER SALES TAXES CAN'T BE HELPED SAYS 37YEAROLD NOBUAKI FUJIMOTO THE CURRENT 3 CONSUMPTION TAX IS LOW COMPARED WITH THOSE IN OTHER NATIONS HE ADDS ECHOING THE GOVERNMENT'S ARGUMENT IN FAVOR OF HIGHER RATES THE GOVERNMENT WILL SUBMIT ITS TAX LEGISLATION TO THE DIET SOMETIME IN JANUARY AND SEEK APPROVAL BY THE END OF MARCH ACCORDING TO ONE PERSON FAMILIAR WITH THE FINANCE MINISTRY'S THINKING THE INCOMETAX REDUCTION WOULD BE RETROACTIVE TO JANUARY HE SAID BUT MIGHT NOT BEGIN SHOWING UP IN PEOPLE'S PAY CHECKS UNTIL APRIL 9311180095 931118 BUSINESS BRIEF USX UNIT REACHES TENTATIVE AGREEMENT WITH STEELWORKERS USX CORP'S US STEEL UNIT AND THE UNITED STEELWORKERS UNION SAID THEY REACHED A TENTATIVE LABOR AGREEMENT ALTHOUGH DETAILS OF THE PACT WON'T BE DISCLOSED UNTIL MEMBERS VOTE ON THE AGREEMENT THE ACCORD IS EXPECTED TO RESEMBLE CONTRACTS REACHED WITH OTHER MAJOR STEELMAKERS EARLIER THIS YEAR I'M SURE IT MIRRORS THE AGREEMENTS SIGNED WITH BETHLEHEM STEEL CORP INLAND STEEL INDUSTRIES INC AND NATIONAL STEEL CORP SAID MIKE LOCKER AN INDUSTRY CONSULTANT THE US STEEL PACT COVERS 15000 WORKERS THE PATTERN WAS SET BY INLAND IN MAY WITH A SIXYEAR AGREEMENT A MAJOR PROVISION IN THE AGREEMENTS WITH THE STEELMAKERS ALLOWS THE UNION TO NOMINATE ONE BOARD MEMBER THE STEELWORKERS ALSO GAINED ACCESS TO THE COMPANIES' BUSINESS PLANS AND WON NOLAYOFF CLAUSES WORKERS RECEIVED SMALL WAGE INCREASES AND BONUSES HEFTY PENSION IMPROVEMENTS AND ACCEPTED MANAGED HEALTHCARE PLANS THE COMPANIES GAINED PRODUCTIVITY IMPROVEMENTS THROUGH WORKRULE CHANGES AND WORKFORCE CUTS THROUGH ATTRITION THE STEELWORKERS ORIGINALLY TRIED TO SET A PATTERN FOR NEGOTIATIONS WITH US STEEL WHOSE CONTRACT EXPIRES JAN 31 BUT THE TALKS BROKE OFF IN MARCH WHEN US STEEL BASED IN PITTSBURGH BALKED AT THE NOTION OF BOARD REPRESENTATION IT'S NOT CLEAR WHETHER THE UNION WILL GAIN MORE INPUT IN COMPANY MATTERS BUT THE US STEEL PACT IS FOR 55 YEARS PUTTING IT IN THE SAME TIME FRAME AS THE EARLIER CONTRACTS AND SUGGESTING THEY ARE SIMILAR STEEL LABOR PACTS HAVE USUALLY LASTED THREE TO FOUR YEARS BUT THIS YEAR THE STEELWORKERS OFFERED THE LONGER CONTRACTS IN EXCHANGE FOR JOB SECURITY AND A SAY IN HOW THE COMPANY IS MANAGED THIS TENTATIVE AGREEMENT COMES AFTER A LENGTHY PERIOD OF HARD BARGAINING MARKED BY CONSIDERABLE GIVE AND TAKE ON BOTH SIDES OF THE TABLE SAID THOMAS J USHER US STEEL'S PRESIDENT WE FEEL IT IS A FAIR AGREEMENT THAT ACHIEVES THE GOAL OF SERVING THE INTERESTS OF THE COMPANY ITS EMPLOYEES AND ITS CUSTOMERS IN A TOUGH GLOBAL STEEL MARKET THE TENTATIVE AGREEMENT WITH US STEEL SHOULD RESOLVE ANY ANXIETY AMONG THE COMPANY'S CUSTOMERS ANYTIME YOU HAVE ONE OF THE MAJOR STEEL COMPANIES IN LABOR NEGOTIATIONS YOU ALWAYS HAVE CONCERN AMONG BUYERS SAID CHRISTOPHER PLUMMER A CONSULTANT WITH RESOURCE STRATEGIES INC 9311180094 931118 INTERNATIONAL BELL ATLANTIC STET VENTURE INTO MULTIMEDIA BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN IN ONE OF THE FIRST MULTIMEDIA VENTURES IN EUROPE US TELEPHONE GIANT BELL ATLANTIC CORP AND ITALY'S STET SPA ANNOUNCED A PRELIMINARY AGREEMENT TO FORM AN INTERACTIVE TELEVISION VENTURE MULTIMEDIA VENTURES GENERALLY INVOLVE THE MERGER OF TELECOMMUNICATIONS TELEVISION AND COMPUTER TECHNOLOGIES THE ACCORD WHICH CALLS FOR THE TWO COMPANIES TO SIGN A MEMORANDUM OF UNDERSTANDING BY NEXT MARCH 31 WOULD INITIALLY STUDY THE APPLICATION OF VIDEO ON DEMAND FOR THE ITALIAN MARKET PHILADELPHIABASED BELL ATLANTIC HAS BEEN TESTING THESE SYSTEMS IN THE US WHICH ALLOW TELEPHONE COMPANIES TO TRANSMIT A VIDEO SIGNAL OVER NORMAL TELEPHONE COPPER WIRES CONNECTED TO HOME TELEVISIONS TELEVISION VIEWERS THEN HAVE THE OPTION OF ORDERING UP VIDEOS THROUGH THE TELEPHONE FROM HOME BELL ATLANTIC SAID DISCUSSIONS TO USE THIS TECHNOLOGY IN ITALY ARE ALREADY UNDER WAY WITH STET'S TELEPHONE OPERATOR SIP AND AN EXPERIMENTAL PHASE FOR THE NEW SERVICE IS EXPECTED TO BEGIN IN 1994 THE TWO COMPANIES SAID THE NEW JOINT VENTURE WILL BE MAJORITYOWNED BY STET AND OPEN TO OTHER PARTNERS INCLUDING ITALIAN COMPANIES WITH INFORMATION PROGRAMMING AND DISTRIBUTION CAPABILITIES THE COMPANIES DECLINED TO GIVE SPECIFIC SHAREHOLDING STAKES IN THE VENTURE THE BELL ATLANTIC SPOKESMAN SAID THE VENTURE PLANS TO STUDY OTHER USES OF MULTIMEDIA TECHNOLOGY IN THE ITALIAN MARKET BELL ATLANTIC MOVED TO THE FOREFRONT OF THE NEW FIELD AFTER IT PROPOSED TO ACQUIRE US CABLE OPERATOR TELECOMMUNICATIONS INC THE COMBINATION IS EXPECTED TO BE ONE OF THE LARGEST INFORMATIONDISTRIBUTION AND MULTIMEDIA COMPANIES IN THE WORLD CRITICS HAVE ARGUED THAT EUROPE LAGS BEHIND THE US IN THE DEVELOPMENT OF MULTIMEDIA TECHNOLOGY AND APPLICATIONS AND TO DATE ONLY BRITISH TELECOMMUNICATIONS PLC HAS ANNOUNCED PLANS TO STUDY VIDEO ON DEMAND FOR THE UK MARKET SEVERAL AMERICAN COMPANIES HAVE RUSHED TO THE UK TO INVEST IN CABLETV NETWORKS INCLUDING BABY BELLS NYNEX CORP OF NEW YORK AND U S WEST INC OF ENGLEWOOD COLO 9311180093 931118 WHO'S NEWS COASTAL CORP COASTAL CORP HOUSTON WILLIAM P VITITOE 55 YEARS OLD HAS RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS ENERGY HOLDING COMPANY'S ANR PIPELINE CO UNIT TO PURSUE OTHER INTERESTS A SUCCESSOR HASN'T BEEN NAMED SEPARATELY COASTAL NAMED RICHARD A LIETZ EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF ANR PIPELINE MR LIETZ 48 SUCCEEDS WILLIAM J HAENER 52 WHO WILL CONTINUE AS A CONSULTANT TO COASTAL 9311180092 931118 WHO'S NEWS AIR METHODS CORP AIR METHODS CORP DENVER MAURICE L MARTIN JR WAS NAMED TO THE NEWLY CREATED POST OF CHIEF OPERATING OFFICER AT THE PROVIDER OF AIRMEDICAL SERVICES AND SYSTEMS MR MARTIN 45 YEARS OLD WILL CONTINUE TO SERVE AS AN EXECUTIVE VICE PRESIDENT 9311180091 931118 POLITICS & POLICY SENATE 5643 VOTES FOR ADDING BAN ON SEMIAUTOMATIC GUNS TO CRIME BILL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE APPROVED 5643 A BAN ON THE MANUFACTURE SALE AND POSSESSION OF SEMIAUTOMATIC ASSAULT WEAPONS THE MEASURE AN AMENDMENT TO THE PENDING CRIME BILL WOULD BAN 19 SPECIFIC TYPES OF SEMIAUTOMATIC ASSAULT WEAPONS AND PROHIBIT THE PRODUCTION OF COPYCAT MODELS ALSO BANNED WOULD BE ANY MAGAZINE DESIGNED TO FEED MORE THAN 10 ROUNDS OF AMMUNITION TO A WEAPON TO PROTECT THE INTERESTS OF HUNTERS THE LEGISLATION SPONSORED BY SEN DIANNE FEINSTEIN D CALIF WOULD EXEMPT MORE THAN 650 HUNTING WEAPONS BY NAME THROUGHOUT AMERICA FAMILIES AND COMMUNITIES ARE STRUGGLING JUST TO BE SAFE SEN FEINSTEIN SAID TODAY THE SENATE SAID LOUDLY AND CLEARLY THAT IT SHARES THE SAME CONCERN AND IS WILLING TO DO THE RIGHT THING DESPITE THE OPPOSITION OF ONE OF THE MOST POWERFUL AGENTS IN AMERICA THE AMERICAN GUN LOBBY THIS MEASURE IS NOT ABOUT RESTRICTING THE RIGHTS OF RESPONSIBLE PEOPLE WHO COLLECT OR HUNT SHE ADDED RATHER THIS LEGISLATION IS GEARED SOLELY TOWARD STOPPING SEMIAUTOMATIC ASSAULT WEAPONS WHICH CAN FIRE 30 TO 50 ROUNDS OF AMMUNITION WITHIN SECONDS AND WITHOUT WARNING FROM FURTHER FLOODING ONTO OUR STREETS AND TO REDUCE THEIR NUMBERS OVER TIME THE CLINTON ADMINISTRATION STRONGLY SUPPORTED THE FEINSTEIN AMENDMENT ATTORNEY GENERAL JANET RENO CALLED IT A WELLREASONED AND BALANCED APPROACH TO THE PROBLEM OF THE PROLIFERATION OF ASSAULT WEAPONS ON OUR NATION'S STREETS THE NATIONAL RIFLE ASSOCIATION VIGOROUSLY OPPOSED THE AMENDMENT AND EXPRESSED HOPE THE MEASURE WON'T BECOME LAW WE'RE HOPEFUL THE CONGRESS AS A WHOLE WILL IN THE FINAL ANALYSIS REJECT THE FALLACY THAT GUN CONTROL IS CRIME CONTROL AND RECOGNIZE THAT THIS IS NOT A SUBSTANTIVE WAY TO REDUCE VIOLENT CRIME SAID BILL MCINTYRE AN NRA SPOKESMAN THE FEINSTEIN AMENDMENT IS PART OF LARGER LEGISLATION THAT WOULD AUTHORIZE 223 BILLION FOR A VARIETY OF CRIMERELATED PROGRAMS MORE THAN TWOTHIRDS OF THAT MONEY WOULD BE SPENT ON LAW ENFORCEMENT AND PRISONS FUNDS FOR THE CRIME INITIATIVE WOULD BE RAISED THROUGH FEDERAL WORKFORCE REDUCTIONS WHICH COULD ENTAIL CUTBACKS IN OTHER GOVERNMENT PROGRAMS THE MONEY WOULD BE DIRECTED TO A VIOLENT CRIME REDUCTION TRUST FUND THAT WOULDN'T HAVE TO COMPETE FOR FUNDS WITH OTHER PROGRAMS THE TRUST FUND WAS PASSED AS AN AMENDMENT TO THE CRIME BILL THERE WERE NO HEARINGS ON THE ISSUE TO OBTAIN THE 3 BILLION IN PRISONCONSTRUCTION MONEY THAT THE TRUST FUND WOULD PROVIDE STATES WOULD HAVE TO AGREE TO CERTAIN CONDITIONS INCLUDING THAT THEY ADOPT PRETRIAL DETENTION LAWS AND POLICIES ENSURING THAT STATE PRISON SENTENCES FOR CERTAIN CATEGORIES OF CRIMES ARE AT LEAST AS LONG AS SENTENCES UNDER FEDERAL LAW THE BILL WOULD PROVIDE SOME MONEY FOR CRIMEPREVENTION PROGRAMS INCLUDING 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 9311180090 931118 TRUCKERS' PROTEST AFFECTS LITTLE BEYOND CALIFORNIA A WALL STREET JOURNAL NEWS ROUNDUP THE INDEPENDENT TRUCKERS' PROTEST WHICH OFFICIALLY ENDED YESTERDAY DISRUPTED SOME PORT AND RAIL TRAFFIC IN CALIFORNIA BUT HAD LITTLE EFFECT ON TRAFFIC NATIONWIDE MOST MAJOR TRUCK COMPANIES DIDN'T SUPPORT THE STRIKE AND SHIPPERS' BUSINESS WAS FAIRLY NORMAL SO FAR IT DOESN'T SEEM TO HAVE AFFECTED MUCH OF ANYTHING AT MY END SAID WILLIAM FIERMAN COOWNER OF FIERMAN PRODUCE EXCHANGE NEW YORK THE WEEKLONG STRIKE PROTESTING HIGHER DIESELFUEL PRICES INCREASED GOVERNMENT REGULATION AND THE NORTH AMERICAN FREE TRADE AGREEMENT HAD THE GREATEST EFFECT ON THE HARBOR AREA OF LOS ANGELES AND LONG BEACH CALIF CONTAINERS ARE STACKING UP AT OUR CALIFORNIA PORTS AND OUR CUSTOMERS ARE FINDING IT DIFFICULT TO GET THEIR FREIGHT TO AND FROM OUR RAIL TERMINALS SAID A SPOKESMAN FOR AMERICAN PRESIDENT COS SOUTHERN PACIFIC RAIL CORP SAID THE STRIKE REDUCED TRAFFIC AT ITS CONTAINER TERMINAL IN LOS ANGELES TO 60 OF NORMAL LEVELS UNION PACIFIC CORP ALSO SAID CONTAINER SHIPMENTS AT ITS TERMINAL THERE WERE REDUCED SIGNIFICANTLY THE BLOCKAGE IN CALIFORNIA COULD HAVE A RIPPLE EFFECT YOU CAN'T STICK A CORK IN ONE OF THE WORLD'S BUSIEST PORTS AND NOT EXPECT TO HAVE A SUBSTANTIAL IMPACT ON COMMERCE OUTSIDE THAT GEOGRAPHIC AREA SAID JAY VAN REIN A SPOKESMAN FOR THE CALIFORNIA TRUCKING ASSOCIATION 9311180089 931118 WHO'S NEWS BLISS & LAUGHLIN INDUSTRIES INC BLISS & LAUGHLIN INDUSTRIES INC HARVEY ILL KARL H REITZ VICE PRESIDENT WIRE AND WIRE PRODUCTS GROUP OF STELCO INC WAS ELECTED A DIRECTOR OF THIS MAKER OF COLDFINISHED STEEL BARS SUCCEEDING LESLIE C MCLEAN WHO RESIGNED 9311180087 931118 INTERNATIONAL CHRYSLER TO SELL LAMBORGHINI TO INDONESIANS SPORTSCAR MAKER'S BUYER MEGATECH IS LINKED TO US FIRM VECTOR BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP FORMALLY ANNOUNCED THE EXPECTED SALE OF AUTOMOBILI LAMBORGHINI SPA TO A GROUP OF INDONESIAN BUSINESSMEN TERMS WEREN'T DISCLOSED THE SPORTSCAR MANUFACTURER WHICH MAKES THE V12 492HORSEPOWER DIABLO WILL BE PURCHASED BY MEGATECH LTD A BERMUDA HOLDING COMPANY WITH TIES TO ANOTHER SPORTSCAR MANUFACTURER CALIFORNIABASED VECTOR AEROMOTIVE CORP SETIAWAN DJODY THE OWNER OF THE INDONESIAN CONGLOMERATE SETDCO AND THE OWNER OF 35 OF VECTOR SAID HE'S THE SOLE OWNER OF MEGATECH BUT CORPORATE RECORDS IN HAMILTON BERMUDA SHOW THAT AS WITH SO MANY INDONESIAN BUSINESS DEALS A RELATIVE OF PRESIDENT SUHARTO ALSO IS INVOLVED HUTOMO MANDALA PUTRA A SON OF THE PRESIDENT IS LISTED AS A JOINT OWNER OF MEGATECH ROBERT J EATON CHRYSLER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY THE SALE WILL GIVE LAMBORGHINI AND ITS EMPLOYEES THE BEST OPPORTUNITY FOR FUTURE PROSPERITY WITH A HIGHLY MOTIVATED AND VERY FOCUSED NEW OWNER CHRYSLER EXECUTIVES SAID THEY'RE SELLING LAMBORGHINI BECAUSE THEY DON'T BELIEVE IT FITS WITH CHRYSLER'S CORE BUSINESS OF SELLING VEHICLES TO MASS MARKETS LAMBORGHINI IS BASED IN SANT' AGATA ITALY AND ITS ENGINEERING ARM WHICH MAKES FORMULA ONE ENGINES IS BASED IN MODENA ITALY CHRYSLER PURCHASED LAMBORGHINI FOR 25 MILLION IN 1987 WHEN THE BIG THREE US AUTO MAKERS WENT ON A SHOPPING SPREE BUYING EUROPEAN MANUFACTURERS OF EXOTIC SPORTS CARS IN AN EFFORT TO ADD SOME LUSTER TO THE COMPANIES' DOMESTIC NAMEPLATES BUT IN THE PAST TWO YEARS THE BOTTOM HAS DROPPED OUT OF THE MARKET FOR 150000PLUS CARS AND THE LUXURY NAMEPLATES BECAME LITTLE MORE THAN A COSTLY DISTRACTION FROM MAKING VEHICLES FOR MASS MARKETS FOR EXAMPLE EARLIER THIS YEAR GENERAL MOTORS CORP SOLD ITS GROUP LOTUS SPORTCAR MAKER TO BUGATTI INTERNATIONAL FOR AN UNDISCLOSED AMOUNT LAMBORGHINI MARKS MR DJODY'S SECOND INVESTMENT IN HIGHEND SPORTSCAR MANUFACTURING HIS OTHER HOLDING VECTOR MANUFACTURED 448000 SPORTS CARS UNTIL RECENTLY VECTOR MADE HEADLINES IN MARCH WHEN GEORGE WEIGERT THE COMPANY'S FOUNDER AND CEO LOCKED HIMSELF INSIDE THE COMPANY'S PLANT AND REFUSED TO BE FIRED BY THE CAR MAKER'S BOARD MR WEIGERT HIRED SECURITY GUARDS AND WON A RESTRAINING ORDER TO KEEP THE DIRECTORS OUT WHILE PROCEEDING WITH PLANS FOR A 765000 CAR BUT THE DIRECTORS INCLUDING A REPRESENTATIVE OF MR DJODY WON A FEW ROUNDS IN COURT AND MR WIEGERT AND HIS VERY FAST CAR WERE KICKED OUT THE DOOR NOW VECTOR SAYS IT'S POISED TO GO FORWARD WITH SOME SORT OF PARTNERSHIP WITH LAMBORGHINI AND AN UNDER200000 CAR THERE WILL BE AN OPPORTUNITY TO WORK ON A NUMBER OF PROJECTS TOGETHER SAID VECTOR'S COCHAIRMAN JOHN POPE 9311180085 931118 COMMODITIES GOLD FUTURES PRICES RISE AFTER VOLATILE SESSION DRIVEN BY NAFTA CONCERNS A STRONG CRB INDEX BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD FUTURES PRICES SETTLED HIGHER AFTER A VOLATILE SESSION DOMINATED BY SPECULATION ABOUT THE FATE OF THE NORTH AMERICAN FREE TRADE AGREEMENT AND STRENGTH IN THE COMMODITY RESEARCH BUREAU INDEX OF COMMODITY FUTURES CONTRACTS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY FINISHED AT 37720 AN OUNCE UP 260 AFTER FALLING AS LOW AS 26960 DURING YESTERDAY'S TRADING SESSION THE DECEMBER SILVERFUTURES CONTRACT WAS UP 42 CENTS TO 46020 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE JANUARY PLATINUM WAS DOWN 30 CENTS AT 37850 AN OUNCE GOLD PRICES PLUNGED EARLY YESTERDAY AS TRADERS TOOK STOCK OF GROWING EXPECTATIONS THAT NAFTA WOULD BE APPROVED BY CONGRESS AS THE PRICES FELL MANY SPECULATORS WHO HAD BEEN HOLDING LONG POSITIONS OR WAGERS THAT PRICES WOULD RISE LIQUIDATED THEIR POSITIONS THESE TRANSACTIONS HELPED ACCELERATE THE PACE OF THE PRICE DECLINE ANALYSTS SAID YET THE PLUNGE WAS SHORTLIVED GAINS IN GRAIN PRICES AT THE CHICAGO BOARD OF TRADE FUELED THE CRB INDEX OF 21 FUTURES CONTRACTS TO A LEVEL OF 22319 NOT FAR FROM ITS 1993 HIGH OF 22346 AS THE CRB INDEX RALLIED GOLD PRICES FOLLOWED IT HIGHER ANALYSTS SAID WE MADE A NEW RANGE LOW IN THE MORNING THEN FOUND SUPPORT AND RALLIED SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING FOR SWISS BANK CORP THE MARKET TRICKED AND HURT A LOT OF PEOPLE WHEN GOLD PRICES BEGAN RALLYING IN THE AFTERNOON WEAKNESS IN THE US BOND MARKET AND IN THE US DOLLAR VERSUS OTHER CURRENCIES FED THE STRENGTH OF THE MARKET ANALYSTS SAID ALTHOUGH THE GOLD MARKET HAS REACTED TO RUMORS ABOUT NAFTA QUITE STRONGLY IN THE PAST COUPLE OF DAYS ANALYSTS DON'T THINK THE AGREEMENT IS LIKELY TO CONTINUE TO EXERT INFLUENCE OVER PRECIOUSMETALS PRICES OVER THE LONG TERM WHEN ALL IS SAID AND DONE NAFTA IS A BIG ZERO FOR GOLD SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH NAFTA IS LIKELY TO FADE VERY QUICKLY AS AN INFLUENCE RATHER THE GOLD MARKET WILL BE DRIVEN BY THE PRESENCE OR ABSENCE OF INVESTOR DEMAND SOME TRADERS EXPECT SMALL INVESTORS TO RETURN TO PRECIOUSMETALS MARKETS IN FORCE IN 1994 POSSIBLY DRIVING THE PRICE OF GOLD ABOVE 400 AN OUNCE WHILE OTHERS ARE MORE CAUTIOUS ABOUT ITS PROSPECTS IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF MOST US GRAINFUTURES CONTRACTS ROSE AMID SPECULATION THAT THE US HOUSE OF REPRESENTATIVES WOULD APPROVE NAFTA WHICH LOWERS BARRIERS ON THE EXPORT OF US GRAIN TO MEXICO AMONG OTHER THINGS MEXICO WOULD ANNUALLY ELIMINATE ITS DUTY ON 25 MILLION METRIC TONS OF CORN IMPORTED FROM THE US IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY ROSE 45 CENTS A BUSHEL TO SETTLE AT 2835 A BUSHEL THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY ROSE 85 CENTS A BUSHEL TO SETTLE AT 68275 THE TRADING SESSION CLOSED BEFORE THE HOUSE WAS SLATED TO VOTE ON NAFTA CORN AND SOYBEAN PRICES WERE ALSO SUPPORTED BY GROWING SIGNS THAT US FOOD COMPANIES AND EXPORTERS ARE HAVING DIFFICULTY FINDING GOOD QUALITY CROPS TO PROCESS THE RECORD SUMMER RAIN ACROSS THE MIDWEST IS ESTIMATED TO HAVE CUT THE SIZE OF THE US CORN AND SOYBEAN CROPS BY 31 AND 16 RESPECTIVELY FROM LAST YEAR MUCH OF THE CROPS THAT ARE BEING HARVESTED ACROSS THE MIDWEST HAVE BEEN DAMAGED BY MOLD OR DIDN'T MATURE PROPERLY THERE ARE ALSO GROWING CONCERNS ABOUT THE TIGHT SUPPLY OF CORN IN CBOTAPPROVED WAREHOUSES IN CHICAGO AND TOLEDO GRAINFUTURES TRADERS USE THE GRAIN TO SATISFY THEIR DELIVERY OBLIGATIONS AT THE EXCHANGE WE ARE SEEING A BATTLE BETWEEN EXPORTERS PROCESSORS AND LIVESTOCK FEEDERS FOR GRAIN SAID JOE VICTOR DIRECTOR OF MARKETING AT ALLENDALE INC CRYSTAL LAKE ILL THIS IS GETTING REAL MESSY IN OTHER NEWS THE CBOT SAID IT WILL ASK MEMBERS TO VOTE ON WHETHER TO SCHEDULE SPECIAL GRAIN TRADING SESSIONS TO FOLLOW THE RELEASE OF KEY CROP FORECASTS BY THE AGRICULTURE DEPARTMENT THE DEPARTMENT CURRENTLY RELEASES ITS MONTHLY HARVEST FORECASTS AFTER THE CLOSE OF TRADING ENERGY CRUDEOIL PRICES FOR DECEMBER DELIVERY ROSE 27 CENTS A BARREL TO SETTLE AT 1704 IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE YESTERDAY SPURRED BY HOPES OF AN OUTPUT CUT BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES NEWS FROM IRAN THAT OPEC WILL CONSIDER REDUCING ITS CEILING BY 3 TO 5 WHEN IT MEETS IN VIENNA NEXT WEEK SEEMED TO OUTWEIGH THE MORE BEARISH NEWS ON US INVENTORIES FROM THE AMERICAN PETROLEUM INSTITUTE'S WEEKLY REPORT THOSE STATISTICS SHOWED A HUGE 5872 MILLIONBARREL INCREASE IN CRUDEOIL INVENTORIES FOR THE WEEK ENDED NOV 12 DECEMBER HEATING OIL ROSE ON WEATHERRELATED TRADING TO 5240 CENTS A GALLON UP 127 CENTS GASOLINE TOO FOUND SOME STRENGTH WITH DECEMBER CONTRACTS UP 084 CENT A GALLON TO 4699 CENTS 9311180084 931118 TECHNOLOGY HP NET SURGES BUT FAILS TO HIT STREET FORECASTS BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL HEWLETTPACKARD CO'S NET INCOME MORE THAN QUADRUPLED FOR THE FISCAL FOURTHQUARTER BUT THE RESULTS FAILED TO MATCH WALL STREET'S EXPECTATIONS SENDING THE COMPANY'S STOCK SKIDDING NEARLY 5 IN A STATEMENT LEWIS E PLATT THE COMPUTER CONCERN'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER PRONOUNCED HP'S FOURTHQUARTER EARNINGS OF 298 MILLION OR 118 A SHARE A BIG IMPROVEMENT OVER LAST YEAR'S RESULTS IN THE 1992 FOURTHQUARTER THE PALO ALTO CALIF COMPANY EARNED 68 MILLION OR 28 CENTS A SHARE AFTER A NONRECURRING PRETAX CHARGE OF 137 MILLION FOR RESTRUCTURING MR PLATT ALSO CALLED HP'S 32 INCREASE IN REVENUE AND 24 GROWTH IN ORDERS FOR THE QUARTER ENDED OCT 31 OUTSTANDING REVENUE FOR THE QUARTER ROSE TO 569 BILLION FROM 432 BILLION ORDERS FOR HP'S LASERJET AND DESKJET PRINTERS AS WELL AS PERSONAL COMPUTERS AND WORKSTATIONS WERE ESPECIALLY STRONG THE COMPANY SAID BUT ANALYSTS WHO HAD PREDICTED HP'S EARNINGS FOR THE FINAL QUARTER OF 1993 WOULD RUN ABOUT 123 A SHARE EXPRESSED RESERVATIONS ABOUT THE RESULTS OF HP'S CONTINUING STRATEGY OF PRESSING INTO HIGHLY COMPETITIVE RETAIL MARKETS WHILE THAT HAS BOOSTED VOLUME AND REVENUE FROM ITEMS LIKE INKJET PRINTERS AND PCS PRICECUTTING HAS SLICED INTO HP'S GROSS PROFIT MARGINS PROBLEMS WITH THE COMPANY'S TIGHT MARGINS WERE UNDERSCORED BY HP'S COST OF SALES IN THE FOURTHQUARTER WHICH ROSE TO 614 OF NET REVENUE COMPARED WITH 581 IN THE YEARAGO QUARTER AND 598 IN THE 1993 THIRDQUARTER MR PLATT CALLED THE STEPPEDUP PRESSURE ON COST OF SALES ONE OF HIS COMPANY'S REAL CHALLENGES SEVERAL ANALYSTS CITING THE COMPANY'S BUSINESS STRATEGY SAID THEY WERE TRIMMING THEIR EARNINGS PROJECTIONS FOR HP'S FIRSTQUARTER OF FISCAL 1994 THIS WAS A VERY IMPRESSIVE QUARTER BUT THE TRENDS FOR NEXT YEAR ARE CONCERNING INVESTORS SAID ONE NEW YORK ANALYST WHO CUT A NICKEL OFF HIS FIRSTQUARTER EARNINGS ESTIMATE AFTER THE RESULTS WERE POSTED COWEN & CO ANALYST RICHARD CHU SAID HP'S REVENUES WERE CERTAINLY STRONGER THAN ANYONE FORESAW BUT THEY PRODUCED HIGH EARNINGS EXPECTATIONS ON WALL STREET THAT WERE UNDERCUT BY DECLINING GROSS MARGINS HE SAID THIS IS A COMPANY THAT FACES CONTINUING CHALLENGES TURNING STRONG ORDERS INTO EARNINGS SAID BARRY F WILLMAN OF GOLDMAN SACHS & CO IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE HP'S STOCK CLOSED AT 7375 DOWN 375 OR 48 HP'S ORDERS CONTINUED TO SURGE REFLECTING THE SHIFT TOWARD THE HIGHVOLUME RETAIL MARKET DURING THE LATEST QUARTER THE COMPANY POSTED A RECORD 55 BILLION ORDER VOLUME UP FROM 44 BILLION IN ORDERS DURING THE FOURTH QUARTER OF 1992 FOR THE FISCAL YEAR HP SAID NET WAS 118 BILLION OR 465 A SHARE MORE THAN DOUBLE THE 549 MILLION OR 218 A SHARE IT EARNED IN 1992 AFTER THE SPECIAL CHARGE FOR RESTRUCTURING REVENUE FOR THE YEAR ROSE 24 TO 2032 BILLION FROM 1641 BILLION A YEAR AGO 9311180083 931118 MARKETING & MEDIA FCC ORDERS TCI TO EXPLAIN MEMO ON RAISING RATES BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION ORDERED TELECOMMUNICATIONS INC TO EXPLAIN AN INTERNAL MEMO THAT URGES LOCAL OPERATORS TO RAISE CABLETV RATES AND BLAME THE INCREASES ON THE GOVERNMENT THE ACTION CAME ONE DAY AFTER THE FCC SAW AN INTERNAL MEMO FROM BARRY MARSHALL TCI EXECUTIVE VICE PRESIDENT WHICH ESTIMATES THE COMPANY COULD RECOVER ALMOST HALF OF WHAT IT IS LOSING AS A RESULT OF RATE REGULATION BY CHARGING CUSTOMERS MORE FOR SERVICES SUCH AS REPAIR AND INSTALLATION TCI WAS ONE OF 16 CABLE OPERATORS THAT YESTERDAY WERE ISSUED WHAT THE FCC DESCRIBED AS LETTERS OF INQUIRY WITH INVESTIGATORY OVERTONES IN PARTICULAR TCI IS DIRECTED TO PROVIDE A DETAILED DESCRIPTION OF THE METHODOLOGY USED TO DEVELOP CHARGES FOR THE SERVICES INDICATED IN THE MEMORANDUM SAID ROY STEWART HEAD OF THE FCC'S MASS MEDIA BUREAU IN A LETTER TO TCI PRESIDENT JOHN MALONE HE SAID THE COMPANY ALSO MUST SUBMIT WITHIN 30 DAYS A LIST OF LOCAL TCI SYSTEMS THAT RECEIVED THE AUG 20 INTERNAL MEMO THE COMPANY ALSO WAS ASKED TO PROVIDE COMPREHENSIVE PRICING INFORMATION FROM BEFORE AND AFTER FEDERAL RATE REGULATIONS TOOK EFFECT ON SEPT 1 A TCI SPOKESMAN SAID THE COMPANY WILL COOPERATE FULLY WITH THE INVESTIGATION WE HAVE ALWAYS ANTICIPATED DISCLOSING THIS INFORMATION TO THE FCC AND REGULATORY AUTHORITIES WE HAVE BEEN SUPPORTIVE OF THE COMMISSION'S EFFORTS ALL ALONG AND WE THINK WE'VE COMPLIED IN FULL WITH THE REGULATIONS THE SPOKESMAN ALSO DEFENDED THE TCI MEMO CALLING MR MARSHALL A HERO IN OUR COMPLIANCE EFFORTS HE SAID THE MEMO WAS AN ABERRATION BORNE OF THE FRUSTRATION OF THE MOMENT THE TCI MEMO WAS FIRST REPORTED BY THE WASHINGTON POST THE OTHER 15 LETTERS THAT THE FCC SENT YESTERDAY ARE THE FIRST OF MANY INQUIRIES THE COMMISSION EXPECTS TO TARGET AT SYSTEMS THAT HAVE BEEN ACCUSED BY LOCAL OFFICIALS OF RESTRUCTURING PROGRAM AND SERVICE PRICES TO AVOID REGULATORY REVENUE CONSTRAINTS I PLAN ON ENSURING THAT THE TCI MEMO AND THE OTHER INFORMAL COMPLAINTS ARE INVESTIGATED FULLY AND APPROPRIATE ACTION TAKEN WHERE NECESSARY FCC ACTING CHAIRMAN JAMES QUELLO SAID HE ADDED THE COMMISSION'S RESPONSE COULD MEAN SANCTIONS AGAINST INDIVIDUAL CABLE OPERATORS OR CHANGES IN OUR RULES MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE 9311180082 931118 BUSINESS BRIEF ELECTRONIC HOME BANKING MARKET LURES MORE COMPANIES INCLUDING MICROSOFT A NUMBER OF COMPANIES INCLUDING SOFTWARE GIANT MICROSOFT CORP ANNOUNCED PLANS TO ENTER THE HOME BANKING MARKET A BUSINESS THAT HAS PROVEN ATTRACTIVE BUT ELUSIVE IN THE PAST MICROSOFT PLANS TO INTRODUCE NEW SOFTWARE IN DECEMBER THAT WILL ALLOW CONSUMERS TO DIAL INTO THEIR BANK ACCOUNTS AT US BANCORP PORTLAND ORE A FOUNDING MEMBER OF WHAT MICROSOFT IS CALLING THE HOME BANKING NETWORK THE SOFTWARE WILL ALLOW CUSTOMERS TO PAY BILLS TRANSFER FUNDS AND EXECUTE OTHER BANKING TRANSACTIONS A MICROSOFT SPOKESWOMAN CONFIRMED THAT THE SOFTWARE WOULD BE INTRODUCED IN DECEMBER FIRST NATIONAL BANK OF CHICAGO AND MICHIGAN NATIONAL BANK ARE ALSO FOUNDING MEMBERS OF THE MICROSOFT BANKING ALLIANCE NATIONSBANK CORP CHARLOTTE NC ANNOUNCED AT THE ANNUAL RETAIL DELIVERY SYSTEMS CONFERENCE IN NEW ORLEANS PLANS TO EXPAND ITS HOMEBASED SCREEN PHONE BANKING SERVICES ACROSS THE MIDATLANTIC REGION STARTING IN 1994 NATIONSBANK WILL MARKET THE SERVICE TO MORE THAN ONE MILLION HOUSEHOLDS THE SERVICE COSTS 695 A MONTH BUT CUSTOMERS USING IT MUST FIRST PURCHASE A SCREENBASED PHONE THAT COSTS 7995 THE SERVICE IS AN EXTENSION OF A HOME BANKING SERVICE THAT HAS BEEN AVAILABLE IN THE MARYLANDWASHINGTON DC MARKET SINCE 1992 AS EXPECTED U S WEST MARKETING RESOURCES A UNIT OF THE REGIONAL PHONE COMPANY U S WEST SAID IT PLANS TO TEAM WITH GENERAL MOTORS' ELECTRONIC DATA SYSTEMS CORP AND FRANCE TELECOM'S INTELMATIQUE INTERACTIVE DIVISION TO BRING INTERACTIVE BANKING SERVICES TO HOMES AND BUSINESSES THE THREE COMPANIES CONFIRMED PLANS TO FORM INTERACTIVE TRANSACTION PARTNERS A COMPANY THAT WILL SELL THE SERVICES TO BANKS RETAILERS AND MAJOR BILLERS THOSE CUSTOMERS WILL SELL THE SERVICES TO CONSUMERS AND BUSINESSES UNDER THEIR OWN PRIVATE LABELS INITIAL SERVICES WILL BE AVAILABLE IN APRIL ALSO IN THE FIELD OF ELECTRONIC BANKING AMERICAN TELEPHONE & TELEGRAPH CO AND CHEMICAL BANKING CORP SAID THEY WOULD RUN A TEST IN NEW YORK CITY OF SMART CARDS FOR USE IN AUTOMATED TELLER MACHINES THE TEST TO BEGIN IN THE FIRST QUARTER OF 1994 WILL BE A LIMITED ONE IN WHICH CERTAIN CHEMICAL EMPLOYEES WILL BE ISSUED AT&TMADE SMART CARDS TO PAY FOR FOOD IN THE COMPANY CAFETERIA AND DO SOME LIMITED BANKING IF THE TEST PROVES FEASIBLE THEY WILL OFFER SIMILAR SHOPPING AND BANKING SERVICES TO CONSUMERS SMART CARDS FIT IN A WALLET LIKE A REGULAR CREDIT CARD BUT THEIR INNARDS CONTAIN COMPUTER CIRCUITRY THAT ELECTRONICALLY STORES INFORMATION SUCH AS PERSONAL CREDIT AND HEALTH RECORDS THE INFORMATION CAN BE RETRIEVED OR MANIPULATED WHEN THE CARD IS SLIPPED INTO A SPECIAL ELECTRONIC BOX AT&T AND ITS NCR CORP UNIT ALSO ANNOUNCED THE AVAILABILITY OF UPGRADE KITS FOR NCR ATM MACHINES AND OTHER SELFSERVICE TERMINALS THAT ALLOW THE MACHINES TO ACCEPT AT&T SMART CARDS AS WELL AS CONVENTIONAL MAGNETICSTRIPE BANK CARDS 9311180081 931118 FREE MY HUSBAND BY HOU XIAOTIAN I AM THE WIFE OF WANG JUNTAO A WRITER AND INTELLECTUAL WHO WAS SENTENCED TO 13 YEARS IN PRISON FOR HIS INVOLVEMENT IN THE 1989 DEMOCRACY MOVEMENT IN BEIJING NOW HE IS ALONE IN A TINY ROOM IN A MILITARY HOSPITAL DEBILITATED BY CHRONIC HEPATITIS B CORONARY HEART DISEASE AND THE MENTAL TORTURE OF ISOLATION OVER THE PAST FOUR YEARS GAINING MY HUSBAND'S FREEDOM SAVING HIS LIFE HAS BECOME MY RELIGION IN CHINA I HAVE APPEALED MANY TIMES FOR HIS RELEASE AND NOW I TAKE MY APPEAL DIRECTLY TO THE WEST NOT ONLY FOR WANG JUNTAO BUT FOR THE THOUSANDS OF POLITICAL PRISONERS AND THEIR FAMILIES THROUGHOUT CHINA ON THE EVE OF PRESIDENT CLINTON'S MEETING IN SEATTLE FRIDAY WITH CHINESE PRESIDENT JIANG ZEMIN I OFFER THE FOLLOWING REFLECTIONS ON HOW THE US MIGHT SUCCESSFULLY WORK WITH CHINA TO BETTER THE HUMAN RIGHTS SITUATION IN MY COUNTRY SINCE MR CLINTON ATTACHED HUMAN RIGHTS CONDITIONS TO THE RENEWAL OF MOST FAVORED NATION STATUS FOR CHINA MFN HAS BECOME THE CORNERSTONE OF AMERICAN EFFORTS TO ADVANCE HUMAN RIGHTS IN CHINA IF CERTAIN FAIRLY SPECIFIC GOALS ARE NOT MET BY JUNE MR CLINTON WILL BE LEGALLY BOUND TO REVOKE MFN STATUS THE LOSS OF MFN STATUS FOR CHINA WOULD HAVE A SEVERE IMPACT ON THE CHINESE ECONOMY THE SOCIETY THE STRENGTH OF THE POLITICAL SYSTEM AND ON THE LIVES OF THE CHINESE PEOPLE BUT THE US WOULD SUFFER AS WELL IN CLOSING ITS DOOR TO CHINA THE US WOULD CLOSE ITSELF OFF TO THIS VERY IMPORTANT EMERGING MARKET THIS AT JUST THE MOMENT WHEN THE WORLD IS LOOKING TO ASIA TO FUEL THE NEXT GLOBAL ECONOMIC BOOM IF THE US DEMANDS TOO MUCH ALL WILL LOSE AS A CHILD I LEARNED THAT TO BREAK A HANDFUL OF CHOPSTICKS YOU CANNOT BREAK THEM ALL AT ONCE BUT ONLY ONE AT A TIME RATHER THAN WAVING LONG LISTS OF POLITICAL PRISONERS IN FRONT OF CHINESE LEADERS DEMANDING THE IMMEDIATE RELEASE OF ALL OF THEM THE US SHOULD DEAL WITH POLITICAL PRISONERS ON AN INDIVIDUAL BASIS CHOOSING CAREFULLY THE CASES TO EMPHASIZE IN THIS REGARD THOUGH PRESSURE SHOULD BE CONSTANT THE US MIGHT BEST ENSURE SUCCESS BY STARTING WITH THOSE CASES THAT THE CHINESE GOVERNMENT COULD MOST EASILY RESOLVE WITH A MINIMAL LOSS OF FACE I BELIEVE MY HUSBAND IS SUCH A CASE THE CHINESE PENAL CODE CALLS FOR THE RELEASE OF PRISONERS WHO ARE SERIOUSLY ILL SO THEY MAY GET MEDICAL ATTENTION YET MY HUSBAND AND SEVERAL OTHER POLITICAL PRISONERS REMAIN INCARCERATED THOUGH GRAVELY ILL IN MY HUSBAND'S CASE THE CHINESE GOVERNMENT HAS ACKNOWLEDGED HIS ILLNESS BY ASKING FOR THE RELEASE OF MY HUSBAND AND THE RELEASE OF THE OTHER POLITICAL PRISONERS IN SIMILAR CONDITIONS OF ILL HEALTH THE US WOULD BE ASKING THE CHINESE GOVERNMENT TO DO NO MORE THAN FOLLOW ITS OWN LAWS RELEASING THESE PRISONERS OUT OF CONCERN FOR THEIR HEALTH THE CHINESE GOVERNMENT COULD PROGRESS IN THE EYES OF THE WEST WITHOUT LOSING FACE AT HOME IN THIS WAY A HEALTHY DYNAMIC OF COOPERATION BETWEEN THE US AND CHINA COULD BE ESTABLISHED CREATING A FEEDBACK OF BENEFITS WHEREIN THE HUMAN RIGHTS SITUATION MOVES FORWARD THE CHINESE GOVERNMENT PERCEIVES ITS IMAGE TO BE IMPROVING AND THE ECONOMIC EXPANSION THAT HOLDS THE PROMISE OF HELPING SO MANY PEOPLE IN CHINA AND AMERICA IS UNINTERRUPTED OF COURSE THE US SHOULD NOT BE SATISFIED WITH THE RELEASE OF ONLY A FEW PRISONERS BUT IT CAN BEGIN HERE ESTABLISHING A HEALTHIER AND LESS CONFRONTATIONAL DIALOGUE ON HUMAN RIGHTS AND A NEW PRECEDENT OF OFFERING CHINA CREATIVE SOLUTIONS SO THAT THE CHINESE GOVERNMENT CAN PROGRESS WITHOUT APPEARING TO BE CAVING IN TO WESTERN PRESSURES IT IS MY HOPE THAT BOTH OUR COUNTRIES WILL BE SUCCESSFUL IN THE FUTURE IN ECONOMICS AND IN GUARANTEEING HIGH STANDARDS OF HUMAN RIGHTS TO THIS END I URGE MR CLINTON IN HIS MEETING WITH JIANG ZEMIN TO SPECIFICALLY RAISE THE CASE OF MY HUSBAND AND OF OTHER POLITICAL PRISONERS WHO ARE ILL SUCH AS BAO TONG A FORMER HIGHRANKING GOVERNMENT OFFICIAL WHO WAS PUNISHED FOR HIS PERCEIVED SYMPATHY FOR THE DEMOCRACY MOVEMENT MY HUSBAND'S LIFE IS AT STAKE I LEFT CHINA WITH A TORN HEART UNSURE WHETHER IT WAS BETTER TO STAY TO BE NEARBY SO AT LEAST I COULD GET SOME NEWS OF HIM OR TO LEAVE ON THIS MISSION TO SAVE HIM BEFORE I LEFT CHINA IN SEPTEMBER I SNUCK INTO THE MILITARY HOSPITAL WHERE HE IS BEING HELD AND GLIMPSED HIM THROUGH THE DOOR HE WAS EMACIATED HIS EYES WERE SUNKEN AND HIS SKIN WAS DARK BROWN FROM THE EFFECTS OF THE HEPATITIS I FEAR THAT WHEN I RETURN TO BEIJING NEXT SPRING HIS CONDITION WILL BE WORSE I FEAR I MAY NEVER SEE MY HUSBAND ALIVE AGAIN IF MR CLINTON AND OTHER WESTERN LEADERS ACCEPT THIS PLEA FROM THE HEART OF A SIMPLE WIFE I BELIEVE THAT MY HUSBAND'S LIFE WILL BE SAVED AND THAT THE HUMAN RIGHTS GOALS OF WESTERN NATIONS WILL BE ADVANCED WITHOUT JEOPARDIZING THE BENEFITS FOR THE CHINESE PEOPLE AND THE WORLD OF CHINA'S CONTINUED ECONOMIC DEVELOPMENT MS HOU WILL BE A VISITING SCHOLAR AT THE CENTER FOR THE STUDY OF HUMAN RIGHTS AT COLUMBIA UNIVERSITY STARTING IN JANUARY 9311180080 931118 SOTHEBY'S SETS RECORD AT JEWELRY AUCTIONS HELD IN SWITZERLAND NEW YORK THE MARKET FOR JEWELRY AND PRECIOUS GEMS HEATED UP AT A SERIES OF SOTHEBY'S HOLDINGS INC AUCTIONS IN GENEVA SWITZERLAND A TWODAY SERIES OF SALES ENDED LATE YESTERDAY RAISED APPROXIMATELY 709 MILLION THAT WAS ABOUT 15 MILLION MORE THAN EXPECTED AND BROKE THE FIRM'S OWN RECORD OF 502 MILLION FOR THE SALE OF THE DUCHESS OF WINDSOR JEWELS IN 1987 IN FACT JEWELRY IS NOW OUTPERFORMING IMPRESSIONIST AND MODERN PAINTINGS SOTHEBY'S CORE AUCTION BUSINESS OF ALL THE MAJOR MARKETS THE JEWELRY MARKET IS THE STRONGEST RIGHT NOW WITH BIDDERS FROM 10 COUNTRIES ACTIVE AT THE SALE SAID DIANA D BROOKS PRESIDENT OF SOTHEBY'S WORLDWIDE AUCTION OPERATIONS BY TELEPHONE FROM GENEVA HOTTEST SECTORS IN THE MARKET ADDED SOTHEBY'S JEWELRY EXPERT JOHN BLOCK WERE ART DECO JEWELRY CLOCKS AND THE BIG DIAMONDS THE SALE FEATURED 808 RINGS BRACELETS AND PINS AND SEVERAL HUGE UNMOUNTED STONES WITH PRESALEPRICE ESTIMATES OF 1 MILLION OR MORE THE MOST EXPENSIVE PIECE ON THE AUCTION BLOCK A 10036CARAT DIAMOND ALMOST ONEINCH SQUARE BROUGHT 119 MILLION THAT WAS THE SECONDHIGHEST PRICE EVER FETCHED FOR A PIECE OF JEWELRY IN DOLLAR TERMS HOWEVER IN SWISS FRANCS THE SALE SET A RECORD SINCE THE WINNER PAID MORE THAN THE 159 MILLION SWISS FRANCS 106 MILLION PAID BY THE WINNER OF THE RECORDPRICE DIAMOND THE MOUAWAD SPLENDOR THAT WAS SOLD IN GENEVA IN NOVEMBER 1990 THE EXCHANGE RATE IN 1990 PUT THE PRICE OF THAT DIAMOND AT 128 MILLION THE JEWELRY MARKET BEGAN TO TAKE OFF AT THE APRIL 1987 SALE OF LATE DUCHESS OF WINDSOR'S JEWELS WHICH FETCHED MORE THAN SIX TIMES THE EXPECTED TOTAL THE PERSIAN GULF WAR ALSO BOOSTED THE MARKET AS MIDDLE EASTERN AND EUROPEAN BUYERS EMBRACED JEWELRY AS AN EASILY TRANSPORTABLE AND SALEABLE INVESTMENT THE WINNER OF THE 10036CARAT DIAMOND WHO WISHED TO REMAIN ANONYMOUS NOW HAS THE PRIVILEGE OF NAMING IT 9311180079 931118 LEISURE & ARTS BOOKSHELF WE'RE ALL OUT OF AFRICA BY JIM HOLT AT A TIME WHEN EVEN PEOPLE OF GOODWILL ARE DRIVEN TO WONDER ABOUT HOW DEEP RACIAL OTHERNESS RUNS IT IS SALUTARY TO CONSIDER WHAT SCIENCE HAS TO SAY ON THE MATTER AND WHAT SCIENCE HAS TO SAY IS THIS BIOLOGICALLY SPEAKING WE ARE ALL OF US BLACK WHITE AND YELLOW THE CLOSEST OF KIN WHAT LITTLE GENETIC DIFFERENCE THERE IS BETWEEN THE RACES IS MINUSCULE COMPARED WITH THE VARIATION AMONG MEMBERS OF THE SAME RACE SO FOR EXAMPLE PATRICK BUCHANAN HAS MORE IN COMMON GENETICALLY WITH MANY SWAHILIS AND OUTER MONGOLIANS THAN HE DOES WITH SAY PRINCE CHARLES THERE WOULD APPEAR TO BE A VERY GOOD REASON FOR THIS RECENT DISCOVERIES BY BOTH PALEONTOLOGISTS AND MOLECULAR BIOLOGISTS SUGGEST THAT MODERN HUMANS AROSE IN AFRICA A SCANT 150000 YEARS AGO THE DAY BEFORE YESTERDAY BY EVOLUTIONARY STANDARDS THAT LEAVES TIME FOR SUPERFICIAL RACIAL ADAPTATIONS TO HAVE EMERGED SKIN COLOR FOR EXAMPLE BUT CHANGES IN BRAIN STRUCTURE TAKE FAR LONGER TO EVOLVE SEVERAL HUNDREDS OF THOUSANDS OF YEARS IT FOLLOWS THAT NO SIGNIFICANT INTELLECTUAL OR EMOTIONAL DIFFERENCES AMONG THE RACES HAVE HAD TIME TO DEVELOP THE EVIDENCE FOR THE RECENT AFRICAN GENESIS OF HUMANKIND IS NEATLY LAID OUT BY ROGER LEWIN IN THE ORIGIN OF MODERN HUMANS SCIENTIFIC AMERICAN LIBRARY 204 PAGES 3295 MR LEWIN A VERSATILE WRITER WHO HAS COAUTHORED SEVERAL BOOKS WITH FOSSIL HUNTER RICHARD LEAKEY PROVIDES A GRACEFULLY WRITTEN AND EXTREMELY USEFUL HISTORY OF THE SCIENTIFIC DEBATE OVER HUMAN ORIGINS FROM THE DISCOVERY OF THE NEANDERTHAL MAN IN THE MID19TH CENTURY ALL THE WAY TO THE ALLEGED IDENTIFICATION BY MOLECULAR BIOLOGISTS JUST A FEW YEARS AGO OF AN AFRICAN EVE THE PUTATIVE 10000TH GREATGRANDMOTHER OF US ALL THESE TWO EVENTS TURN OUT TO FRAME THE CENTRAL ISSUE IN PALEOANTHROPOLOGY TODAY ARE WE THE INEVITABLE PRODUCT OF EVOLUTION OR ARE WE MERELY THE SOLE SURVIVORS AMONG MANY SPECIES OF INTELLIGENT HOMINIDS THAT PEOPLED VARIOUS PARTS OF THE GLOBE OVER THE PAST MILLION YEARS MR LEWIN RENDERS THIS MATTER ESPECIALLY POIGNANT BY OPENING HIS BOOK WITH A DESCRIPTION OF THE FUNERAL OF A NEANDERTHAL SHAMAN BASED ON ARCHAEOLOGICAL EVIDENCE FROM A 60000YEAROLD BURIAL SITE IN NORTHERN IRAQ ALTHOUGH HIS RECONSTRUCTION IS FANCIFUL THE NEANDERTHALS DID LEAVE BEHIND UNMISTAKABLE SIGNS OF CULTURE AND INTELLIGENCE AND THEY BOASTED LARGER BRAINS THAN THOSE OF CONTEMPORARY HUMANS NOR WERE THEY ESPECIALLY BRUTISH IN APPEARANCE IF HE COULD BE REINCARNATED AND PLACED IN A NEW YORK SUBWAY DRESSED IN MODERN CLOTHING COMMENTED TWO ANATOMISTS AFTER EXAMINING ONE NEANDERTHAL SKELETON IN 1957 IT IS DOUBTFUL WHETHER HE WOULD ATTRACT ANY MORE ATTENTION THAN SOME OF ITS OTHER DENIZENS YET THE NEANDERTHALS HAVE NO DESCENDANTS TODAY NOT EVEN ON THE NEW YORK SUBWAYS HARD AS IT MAY BE TO BELIEVE AFTER FLOURISHING FOR MANY MILLENNIA THEY DISAPPEARED SOME 30000 YEARS AGO A SIMILAR FATE APPEARS TO HAVE BEFALLEN PEKING MAN IN ASIA AND JAVA MAN IN AUSTRALIA TWO OTHER TYPES OF ARCHAIC HOMINIDS WE KNOW OF THROUGH FOSSIL EVIDENCE WHAT HAPPENED IT SEEMS THAT AROUND 100000 YEARS AGO A MASS OF ANATOMICALLY MODERN HUMANS THAT HAD EVOLVED IN SUBSAHARAN AFRICA EMERGED FROM THAT CONTINENT AND SPREAD ACROSS EUROPE AND ASIA WHERE THEY CAUSED THE GRADUAL EXTINCTION OF THE HOMINIDS ALREADY THERE WHETHER THIS WAS ACCOMPLISHED GENOCIDALLY OR THROUGH MORE BENIGN ECOLOGICAL DISPLACEMENT CANNOT BE SAID WITH CERTAINTY WHATEVER THE CASE THESE PRIMORDIAL AFRICAN MIGRANTS WOULD APPEAR TO BE OUR TRUE ANCESTORS THIS OUTOFAFRICA SCENARIO THOUGH CONTROVERSIAL IS THE THEORY OF HUMAN EVOLUTION THAT BEST SQUARES WITH THE ARCHAEOLOGICAL AND GENETIC EVIDENCE AS MR LEWIN MAKES PLAIN SO COMPELLING IS HIS PARALLEL ACCOUNT OF THE EMERGENCE OF HOMO SAPIENS' LANGUAGE ART AND CULTURE THAT ONE COMES AWAY FROM HIS BOOK FEELING A BIT MELANCHOLY THAT THE NEANDERTHALS DIDN'T GET A SHOT AT IT ALL TOO READERS WHO CARE MORE ABOUT THE QUESTION OF WHERE HUMANITY IS HEADED THAN WHENCE WE CAME MIGHT BE TEMPTED TO TAKE A LOOK AT GREGORY STOCK'S METAMAN THE MERGING OF HUMANS AND MACHINES INTO A GLOBAL SUPERORGANISM SIMON & SCHUSTER 365 PAGES 24 THE AUTHOR A BIOCHEMIST AND WOULDBE VISIONARY WITH AN MBA FROM HARVARD SUBMITS THAT LIFE ON EARTH HAS RECENTLY ENTERED A NEW PHASE OF EVOLUTION ONE DRIVEN BY TECHNOLOGICAL ADVANCES RATHER THAN NATURAL SELECTION AS A RESULT A NEW CREATURE HAS COME INTO BEING IN OUR MIDST ITS NAME IS METAMAN METAMAN IS MR STOCK'S TERM FOR HUMANITY AND ALL ITS TECHNOLOGICAL WORKS COMPUTERS AGRICULTURE MANUFACTURING AND SO ON ROLLED INTO ONE VAST THROBBING SELFREGULATING WHOLE METAMAN'S CELLS ARE INDIVIDUAL HUMANS ITS DIET INCLUDES IRON AND OIL AS WELL AS PIZZA ITS NERVOUS SYSTEM IS AT&T PLUS CNN ITS EXCRETORY TRACT IS THE WORLD'S SEWAGE SYSTEMS ITS REPRODUCTIVE ORGANS ARE BUT YOU GET THE IDEA EVER THE OPTIMIST MR STOCK EXPLAINS HOW METAMAN'S KNACK FOR INTELLIGENT ADAPTATION WILL ENABLE IT TO OVERCOME BIRTH PAINS LIKE GLOBAL WARMING AND BRING ABOUT A UTOPIAN FUTURE YET FOR ALL THE FUN FACTS THE AUTHOR HAS MARSHALED HIS PREDICTIONS ARE DISAPPOINTINGLY VAPID POPULATION WILL MOVE TOWARD WHATEVER LEVEL PROVES OPTIMAL FOR METAMAN YES BUT WHAT LEVEL PLEASE IT DOESN'T TAKE MUCH OF THIS TO TURN METAMAN INTO A MEGABORE 9311180078 931118 YOUR MONEY MATTERS YEAREND FINANCIAL PLANNING TEN TRICKS TO AVOID WHEN COMING TO TERMS WITH THE NEW TAX LAW BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL EVERYONE HAS AN IDEA HOW TO SAVE ON TAXES WHETHER IT'S YOUR BROTHERINLAW SOME COLDCALLING BROKER OR THE CREW AT THE WATER COOLER BUT THAT DOESN'T MEAN THE IDEAS ARE ANY GOOD INDEED PEOPLE DO SOME INCREDIBLY STUPID THINGS IN TRYING TO KEEP UNCLE SAM'S HANDS OFF THEIR MONEY PEOPLE GET TRANSFIXED BY TAXES AND FORGET TO KEEP THEIR EYE ON THE BOTTOM LINE SAYS TERRENCE PERRIS A CLEVELAND TAX ATTORNEY AFTER ALL HE SAYS YOU CAN CUT YOUR TAX 40 CENTS BY NOT EARNING THAT EXTRA DOLLAR BUT YOU'LL STILL BE 60 CENTS POORER THIS YEAR TAX EXPERTS ARE EXPECTING A BUMPER CROP OF TAX BLOOPERS THE REASON WITH ALL THE PUBLICITY THAT THE NEW TAX LAW HAS GENERATED MANY PEOPLE WHO AREN'T AFFECTED THINK THEY WILL BE AND THAT'S PROMPTING MANY PEOPLE TO DO SOMETHING EVEN IF THAT SOMETHING ISN'T SMART SAYS KEVIN ROACH A PARTNER AND FINANCIAL PLANNER WITH PRICE WATERHOUSE SO TO HELP KEEP YOU FROM SHOOTING YOURSELF IN THE FOOT HERE IS A LOOK AT SOME OF THE DUMB THINGS DONE BY OTHERWISE BRIGHT PEOPLE IN AN EFFORT TO CUT TAXES YOU MIGHT CALL IT WITH APOLOGIES TO DAVID LETTERMAN THE WALL STREET JOURNAL'S TOP 10 STUPID TAX TRICKS PEOPLE PUT DUMB THINGS IN IRAS SAYS THOMAS OCHSENSCHLAGER A TAX PARTNER WITH GRANT THORNTON IN WASHINGTON TOPPING THE LIST PUTTING TAXFREE MUNICIPAL BONDS IN AN INDIVIDUAL RETIREMENT ACCOUNT APPARENTLY MANY PEOPLE LOSE TRACK OF THE FACT THAT THE MAIN ADVANTAGE OF AN IRA IS THAT IT ALLOWS INVESTMENTS TO GROW TAX DEFERRED UNTIL THEY ARE WITHDRAWN FILLING THEM WITH TAXFREE INVESTMENTS OR TAXDEFERRED INVESTMENTS SUCH AS ANNUITIES WASTES THAT ADVANTAGE PEOPLE GIVING HOLIDAY GIFTS OF MUTUAL FUNDS OFTEN BUY SHARES WITHOUT CHECKING TO MAKE SURE THE FUND HAS ALREADY MADE ITS YEAREND DISTRIBUTION OF DIVIDENDS AND CAPITAL GAINS BY BUYING BEFORE THE DISTRIBUTION THEIR HOLIDAY PRESENT INCLUDES AN UNINTENDED TAX LIABILITY OTHER FOLKS FORGET ABOUT THOSE ANNUAL DISTRIBUTIONS WHEN THEY SELL THEIR SHARES AND END UP PAYING TAXES TWICE I HAD A DOCTOR WHO SOLD A MUTUAL FUND LAST YEAR SAYS STEVEN ENRIGHT A RIVER VALE NJ FINANCIAL PLANNER HE BASICALLY TOOK THE ORIGINAL INVESTMENT HE HAD MADE BACK IN 1985 AS HIS COST BASIS HE DIDN'T REALIZE HE HAD BEEN PAYING TAXES EVERY YEAR ON HIS DIVIDEND AND CAPITAL GAINS DISTRIBUTIONS SOME PEOPLE GET SO CAUGHT UP IN THE HUNT FOR TAX SAVINGS THAT THEY LOSE SIGHT OF A KEY FACT SOME DEDUCTIONS JUST AREN'T WORTH MUCH AND THAT OVERSIGHT CAN END UP COSTING YOU IF YOU'RE PAYING AN ACCOUNTANT TO DO THE PAPERWORK FOR YOU ONE CLIENT FOR EXAMPLE GAVE MR OCHSENSCHLAGER A SHOEBOX FULL OF GASOLINE RECEIPTS EXPECTING HIM TO FIGURE OUT THE OFFHIGHWAY FUEL CREDIT ON THE FUEL HE USED FOR HIS LAWN TRACTOR THE TOTAL CREDIT IT DIDN'T QUITE REACH 3 SAYS MR OCHSENSCHLAGER FEARFUL THAT THEY WILL TRIGGER AN AUDIT SOME PEOPLE DON'T CLAIM DEDUCTIONS THEY'RE ENTITLED TO THE MOST COMMON UNTAKEN DEDUCTION THE HOME OFFICE SAYS MARTIN M SHENKMAN A NEW YORK ATTORNEY AND FINANCIAL ADVISER I KNOW PEOPLE WHO QUALIFY FOR IT WHO WON'T TAKE IT BECAUSE THEIR ACCOUNTANT SAYS IT WILL FLAG THEIR RETURN BUT THESE SAME PEOPLE HE SAYS WILL TAKE OTHER DEDUCTIONS THAT THEY'RE NOT ENTITLED TO AND HAVE NO PAPERWORK TO BACK UP SOME EXAMPLES CAR LEASES AND CHARITABLE DEDUCTIONS FREQUENTLY PEOPLE WILL GIVE THEIR CHILD OR GRANDCHILD A 10000 CHECK AT YEAR END THINKING THAT'S GOOD USE OF THE 10000 PER PERSON PER YEAR EXEMPTION FROM GIFT TAXES BUT THEY OVERLOOK THE BIRTHDAY PRESENT OR A GRADUATION PRESENT THAT PUTS THEIR YEARLY GIFT TOTAL OVER THE LIMIT PEOPLE FORGET THAT IT IS THE AGGREGATE OF ALL GIFTS MADE OUT DURING THE YEAR SAYS MR SHENKMAN THAT'S ONE PEOPLE MESS UP ALL THE TIME THEN THERE ARE THE FOLKS WHO MAKE YEAREND GIFTS TO CERTAIN TRUSTS THEY SET UP FOR CHILDREN OR GRANDCHILDREN THEY DUTIFULLY WRITE 10000 CHECKS TO TAKE ADVANTAGE OF THE GIFTTAX EXCLUSION BUT LOSE THE EXCLUSION ANYWAY THE REASON THE TRUSTEE FAILS TO ISSUE SOMETHING CALLED A CRUMMEY NOTICE TELLING BENEFICIARIES THAT THEY CAN WITHDRAW THE GIFT FROM THE TRUST IF THEY WISH WITHOUT SUCH NOTICE THE GIFT ISN'T CONSIDERED A GIFT OF A PRESENT INTEREST AND THUS DOESN'T QUALIFY EVERYBODY SETS UP THESE TRUSTS TO GET ESTATE TAX BENEFITS THEY MAKE THESE ESTATE TAX GIFTS AND THEN FORGET TO SEND OUT THIS NOTICE SAYS MR SHENKMAN THE YEAREND PROCESS OF BALANCING GAINS AND LOSSES IS FULL OF PITFALLS THERE IS ALWAYS SOMEONE WHO SELLS A STOCK JUST A FEW DAYS BEFORE IT WOULD BECOME A LONGTERM GAIN MAKING IT TAXABLE AS A SHORTTERM GAIN AT ORDINARY INCOME RATES SUCH MISTAKES WILL BE MORE COSTLY THIS YEAR NOW THAT THE MAXIMUM TAX RATE FOR ORDINARY INCOME IS 396 COMPARED WITH A MAXIMUM CAPITAL GAINS RATE OF 28 THEN THERE ARE THE PEOPLE WHO INSIST ON MATCHING GAINS AND LOSSES AND END UP PAYING MORE TAXES ONE EXAMPLE SOMEONE WHO TAKES SHORTTERM LOSSES TO OFFSET A LONGTERM GAIN THEY WILL BE OFFSETTING POTENTIAL 28 TAXABLE INCOME WITH POTENTIALLY 396 TAXABLE LOSSES SAYS STUART KESSLER SENIOR PARTNER WITH GOLDSTEIN GOLUB KESSLER & CO NEW YORK BETTER HE SAYS TO HOLD ONTO THAT LOSS AND TAKE IT AGAINST ORDINARY INCOME NEXT YEAR YOU NEED TO HAVE MONEY TO MAKE THIS MISTAKE BUT IT'S A WHOPPER SOME PEOPLE BUY HOMES BUT WAIT MORE THAN 90 DAYS AFTER THE PURCHASE TO TAKE OUT A MORTGAGE ON THE PROPERTY BUT BY THEN THE INTEREST MAY NO LONGER BE CONSIDERED ACQUISITION INTEREST AND AS A RESULT THE PURCHASER MAY LOSE THE MORTGAGEINTEREST DEDUCTION FOR ANYTHING ABOVE 100000 OF DEBT SAYS MR KESSLER SOUNDS LIKE A RARE BLOOPER NOT AT ALL SAYS GRANT THORNTON'S MR OCHSENSCHLAGER WE HAVE THAT HAPPEN SURPRISINGLY OFTEN INVESTORS WHO BORROW MONEY TO MAKE INVESTMENTS TYPICALLY FIGURE THAT THEY CAN WRITE OFF THE INTEREST AGAINST THEIR INVESTMENT INCOME BUT OFTEN THEY DON'T HAVE ENOUGH INVESTMENT INCOME TO OFFSET THE INTEREST SAYS MR OCHSENSCHLAGER THE NEW TAX LAW WILL MAKE IT HARDER FOR PEOPLE TO USE THIS INTEREST SINCE CAPITAL GAINS HAVE BEEN REMOVED FROM THE INVESTMENTINCOME CATEGORY SO SOMEONE WHO NOW BORROWS MONEY TO BUY STOCK IS RUNNING A SUBSTANTIAL RISK THAT THEY WILL NEVER BE ABLE TO OFFSET INVESTMENT INTEREST HE SAYS ONE WAY AROUND THE PROBLEM ELECTING TO HAVE CAPITAL GAINS TAXED AS ORDINARY INCOME MANY PEOPLE FORGET TO FACTOR IN THE ALTERNATIVE MINIMUM TAX THE COMPLEX SPECIAL LEVY DESIGNED TO ENSURE THAT EVEN THE WEALTHIEST PEOPLE WITH THE MOST SOPHISTICATED TAX BREAKS PAY SOME TAXES THESE FORGETFUL TAXPAYERS FOLLOW THE TRADITIONAL YEAREND ADVICE ACCELERATING DEDUCTIONS AND DEFERRING INCOME AND FIND THAT ALL THEIR TAX MANEUVERING HAS BROUGHT THEM A HIGHER TAX BILL MR ROACH OF PRICE WATERHOUSE SAYS ONE OF HIS CLIENTS PREPAID THEIR STATE TAXES TO BOOST THEIR DEDUCTIONS AND TRIGGERED THE AMT THAT MEANT THAT THEY NOT ONLY LOST THE BENEFIT OF THE DEDUCTION WHICH CAN'T BE CLAIMED UNDER THE AMT BUT THEY ENDED UP PAYING MORE TAXES 9311180077 931118 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE HITS JUST KEEP ON COMING WOULDBE HITS THAT IS SOFTWARE PUBLISHERS KEEP CHURNING OUT STACKS OF NEW MULTIMEDIA TITLES EACH MONTH MAINLY ON CDROM DISKS THE HIGHCAPACITY PLATTERS THAT LOOK JUST LIKE AUDIO CDS MANY TRY TO USE PHOTOS VIDEO CLIPS ILLUSTRATIONS AND SOUND TO EMULATE HOLLYWOOD PRODUCTION VALUES MOST FAIL TO APPROACH THIS SMOOTH LOOK AND FEEL OR HAVE HOPELESSLY WEAK CONTENT OTHERS ARE A TREMENDOUS PAIN TO GET WORKING RIGHT ESPECIALLY ON IBMCOMPATIBLE COMPUTERS WHICH OFTEN REQUIRE SPECIAL VIDEO SOFTWARE AND HARDWARE OR MEMORY CONFIGURATIONS THAT CAN VARY FROM DISK TO DISK BUT A FEW OF THE DOZENS THAT CROSS MY DESK ARE WORTHY OF NOTE IN MY VIEW SO HERE'S A BRIEF RUNDOWN ON THE LATEST BATCH OF TITLES I LIKED MEDIO MULTIMEDIA A LITTLE STARTUP COMPANY IN THE SHADOW OF GIANT MICROSOFT IN REDMOND WASH HAS HIT THE GROUND RUNNING WITH ITS FIRST THREE CDROM TITLES EACH JUST SHIPPING TO STORES AT ABOUT 39 ONE CALLED EXPLORING ANCIENT ARCHITECTURE LETS YOU VISUALLY WALK THROUGH EGYPTIAN TEMPLES THE PARTHENON IN ATHENS GREECE AND OTHER FAMOUS STRUCTURES USING 3D ANIMATION AND REALISTIC ILLUSTRATION WHILE A NARRATOR EXPLAINS THEIR ARCHITECTURAL FEATURES AND SIGNIFICANCE ANOTHER MEDIO TITLE THE JFK ASSASSINATION A VISUAL INVESTIGATION EXPLORES BOTH THE OFFICIAL ACCOUNT AND VARIOUS CONSPIRACY THEORIES OF THE 1963 MURDER THE DISK INCLUDES THE FAMOUS ZAPRUDER HOME MOVIE OF THE ASSASSINATION AS WELL AS OTHER AMATEUR FILMS AND STILL PHOTOS WHICH CAN BE VIEWED AT VARIOUS SIZES AND SPEEDS THERE ARE PHOTO MAPS BACKGROUND EXPLANATIONS AND MORE THE THIRD MEDIO CDROM IS MIDNIGHT MOVIE MADNESS A COMPENDIUM OF TRAILERS FOR LAUGHABLY BAD OLD HORROR AND SCIENCEFICTION PICTURES ANNOTATED WITH SMARTALECK COMMENTS TRIVIA QUIZZES AND AN INTRODUCTORY VIDEO BY COMEDIAN GILBERT GOTTFRIED AFTER CAREFUL STUDY I CONCLUDED THAT GODZILLA DISPLAYED MORE SCREEN PRESENCE IN THE 1968 EPIC DESTROY ALL MONSTERS THAN ZSA ZSA GABOR DID AS THE BOSS OF AN ALLFEMALE PLANET IN THE 1958 CLASSIC QUEEN OF OUTER SPACE THE MEDIO TITLES RUN ONLY ON IBMCOMPATIBLES USING MICROSOFT WINDOWS THE VIDEO ON THEM CAN BE CHOPPY OR GRAINY DEPENDING ON YOUR SYSTEM BUT THEY SHOW AMBITION AND CREATIVITY ANOTHER WINNER IS THE SECOND TITLE FROM A CLEVER STARTUP BOOKS THAT WORK PALO ALTO CALIF IT'S CALLED HOME SURVIVAL TOOLKIT HOME REPAIRS AND COMES ON FLOPPY DISKS NOT CDROM FOR IBMCOMPATIBLES RUNNING WINDOWS THE 35 PROGRAM IS BASICALLY ONE OF THOSE THICK FIXITYOURSELF BOOKS TRANSFERRED TO THE COMPUTER SCREEN WITH SOUND ANIMATION AND GOOD GRAPHICS THERE ARE DATABASES ON PAINTS AND ADHESIVES STAIN REMOVAL AND THE TOLLFREE NUMBERS OF HOMEPRODUCT MAKERS IT ALSO HAS SPECIAL CALCULATORS FOR FIGURING OUT HOW MUCH PAINT CONCRETE OR ATTIC VENTILATION YOU NEED WHILE TESTING THE PROGRAM I USED IT TO FIX A LEAKY FAUCET BY JUST PRINTING OUT THE RELEVANT SECTION AND KEEPING IT BY MY SIDE AS I WORKED THERE ARE TWO NEW ENTRIES IN WHAT I CONSIDER TO BE THE SINGLEBEST MULTIMEDIA SOFTWARE SERIES THE LIVING BOOKS A WONDERFUL COLLECTION FOR KIDS BY BRODERBUND SOFTWARE NOVATO CALIF FOR TYKES THERE'S A RICHLY ILLUSTRATED AND WONDERFULLY NARRATED VERSION OF THE TORTOISE AND THE HARE FABLE FOR OLDER GRADESCHOOLERS THERE'S AN ANTHOLOGY OF SILLY POEMS BY JACK PRELUTSKY CALLED THE NEW KID ON THE BLOCK LIKE OTHER LIVING BOOKS THEY INVITE KIDS TO CLICK ON WORDS AND PICTURES TO MAKE FUNNY STUFF HAPPEN ON THE SCREEN THE ANIMATION IS TVQUALITY AND EVERY CHILD I'VE TRIED THESE ON HAS LOVED THEM THEY COME ON CDROM IN VERSIONS FOR MACINTOSH AND IBMCOMPATIBLES FOR AROUND 35 EACH INNOVATIVE VOYAGER NEW YORK HAS A NEW 40 MAC CDROM TITLE CALLED PLANETARY TAXI IT TEACHES KIDS OR ADULTS ABOUT THE SOLAR SYSTEM BY SENDING THE PLAYER OFF IN A SPACE TAXI TO PICK UP PASSENGERS AND TAKE THEM TO VARIOUS PLANETS THE DISK IS PACKED WITH STRIKING PHOTOS AND VIDEOS OF THE PLANETS MICROSOFT HAS UPDATED AND IMPROVED TWO OF ITS MULTIMEDIA CDROM TITLES FOR WINDOWS THE 85 ENCARTA ENCYCLOPEDIA AND 55 CINEMANIA A DATABASE OF MOVIES IN THE 1994 VERSIONS OF EACH VIDEO CLIPS HAVE FINALLY BEEN INCLUDED AND THE PRESENTATIONS HAVE BEEN CLEANED UP CONSIDERABLY NEW ARTICLES AND REVIEWS HAVE BEEN ADDED THESE PRODUCTS WHICH ARE DUE OUT EVENTUALLY FOR THE MAC STILL COULD BE BETTER BUT THEY ARE FOLLOWING THE ADMIRABLE MICROSOFT PATH OF CONSTANT INCREMENTAL IMPROVEMENT FINALLY I WANT TO MENTION A CDROM TITLE THAT ISN'T REALLY MULTIMEDIA IT DOESN'T HAVE SOUND OR MOVING PICTURES BUT IT DOES INCLUDE STREET MAPS OF EVERY US TOWN AND CITY AND IT CAN QUICKLY HOME IN ON STREETS BLOCKS ZIP CODES AND AREA CODES TO DISPLAY MAPS THAT CAN BE PASTED INTO OTHER DOCUMENTS OR PRINTED OUT THE PRODUCT IS THE NEW 125 VERSION 20 OF STREET ATLAS USA FROM DELORME MAPPING FREEPORT MAINE IT NOW COMES IN FULLY COMPATIBLE WINDOWS AND MAC VERSIONS WHICH MAKES COPYING AND PRINTING MAPS MUCH EASIER SO THAT'S THE BEST OF THE LATEST CROP OF TITLES TO CROSS MY DESK THEY CAN BE HARD TO FIND IN STORES BUT THEY HELP MAKE A GOOD CASE FOR ENSURING THAT YOUR NEXT COMPUTER HAS A CDROM DRIVE GOOD SOUND AND VIDEO AND AMPLE MEMORY THUS EQUIPPED YOU CAN TRACE ZSA ZSA'S CAREER FIX A FAUCET OR GET A MAP OF A NEIGHBORHOOD 15 STATES AWAY IT SURE BEATS STARING AT SPREADSHEETS ALL DAY 9311180076 931118 LEISURE & ARTS BEYOND THE PYRAMID MR PEI'S NEW LOUVRE PROJECT BY RAYMOND SOKOLOV PARIS WHEN FRENCH PRESIDENT FRANCOIS MITTERRAND OFFICIALLY OPENS THE RICHELIEU WING OF THE LOUVRE MUSEUM TODAY IT WILL BE HIS FINEST HOUR THIS MAY SOUND LIKE FAINT PRAISE SINCE HIS PRESIDENCY IS CLOUDED WITH ECONOMIC SHADOWS AND UNPRECEDENTED UNEMPLOYMENT AND MANY OF THE GREAT WORKS HE BUDGETED BILLIONS OF FRANCS FOR HAVE FIZZLED OR SERVED AS FLASHY VEHICLES FOR HIS ARROGANT FORMER CULTURE MINISTER JACK LANG BUT THE LOUVRE IS DIFFERENT ALWAYS THE GREATEST OF THE WORLD'S MAJOR MUSEUMS THIS COLOSSAL FORMER PALACE IS IN THE PROCESS OF ALMOST DOUBLING ITS EXHIBITION SPACE TO 658800 SQUARE FEET FROM 334800 ABOUT 1 BILLION HAS BEEN BUDGETED TO REVAMP LARGE PARTS OF ITS GALLERY SPACE TO EXCAVATE AN IMMENSE UNDERGROUND PARKING AREA AS WELL AS MEETING SPACE AND A SHOPPING MALL ACROSS THE STREET AND TO CREATE THE SUBTERRANEAN ENTRYWAY SUBTENDING THE FAMOUS IM PEI GLASS PYRAMID THE FULL RENOVATION WILL NOT BE COMPLETE UNTIL 1997 BUT THE OPENING OF THE RICHELIEU WING IS THE MOST SPECTACULAR AND CREATIVE PART OF THIS HUGE GESTURE TOWARD MAINTAINING FRANCE'S POSITION IN WORLD CULTURAL HISTORY AT THE VERY LEAST THE RECLAIMING OF THIS ENORMOUS AREA SHOWS MR MITTERRAND'S PRIMARY PASSION FOR THE ARTS TRIUMPHING IN AN ALMOST BRUTAL FASHION OVER MORE MUNDANE CONCERNS IN ORDER TO MAKE WAY FOR THE NEARLY 12000 WORKS OF ART NOW ON EXHIBIT IN THE NEW WING ROUGHLY A QUARTER OF THEM BROUGHT OUT OF LOUVRE STOREROOMS MR MITTERRAND HAD TO ROUST HIS OWN FINANCE MINISTRY OUT OF QUARTERS IT HAD OCCUPIED SINCE 1871 THE REAL WORK OF TURNING THE 600YARDLONG 19THCENTURY WING INTO A MODERN MUSEUM SPACE FELL TO THE CHINESEAMERICAN ARCHITECT IM PEI NO STRANGER TO LARGE PROJECTS THE EAST BUILDING OF THE NATIONAL GALLERY IN WASHINGTON THE BANK OF CHINA IN HONG KONG THE MEYERSON CENTER IN DALLAS MR PEI STRODE BOLDLY INTO THE LOUVRE PROJECT WITH HIS PYRAMID SINCE THIS BLATANTLY MODERN OBJECT SQUATS SQUARELY IN THE MIDDLE OF THE OPENSIDED NAPOLEON COURT AT THE FOCAL POINT OF THE MOST GRANDIOSE URBAN VISTA ON THE PLANET THE UNOBSTRUCTED MILELONG VIEW FROM THE ARCH OF TRIUMPH THROUGH THE TUILERIES GARDEN TO THE LOUVRE NO ONE OUGHT TO HAVE EXPECTED MR PEI TO RESTRAIN HIS EGO WHEN HE TACKLED THE RICHELIEU INTERIOR AFTER ALL HIS PYRAMID WAS A COMPLETELY UNNECESSARY PIECE OF PERSONAL SCULPTURE IT COULD HAVE BEEN DESIGNED AS A LOWPROFILE SKYLIGHT THAT WOULDN'T HAVE BLOTTED OUT ALL CLEAR SIGHTLINES ACROSS OR LOOKING INTO THE NAPOLEON COURT BUT EVERYONE SEEMS TO LOVE THE PYRAMID SO WHY SHOULD MR PEI HESITATE TO TREAT THE RICHELIEU WING IN WHATEVER WAY MOST EMPHASIZES HIS ROLE IN THE JOB AFTER ALL NOBODY BUT THOSE EXILED FINANCE MINISTRY BUREAUCRATS COULD POSSIBLY BE ATTACHED TO THE WAY THE WING USED TO LOOK HOW DOES IT LOOK NOW FROM THE OUTSIDE ALMOST EXACTLY THE WAY IT ALWAYS DID AN ORNATE PALACE STRUCTURE BACKING INTO A BUSY STREET AND THE REST OF RIGHT BANK PARIS BUT INSIDE MR PEI HAS MADE HIS STATEMENT IN THE TWO INTERNAL COURTYARDS WHERE THE LOUVRE'S IMMENSE COLLECTION OF FRENCH ROYALGARDEN SCULPTURE HAS FOUND A NEW HOME HE ROOFED OVER THE COURTYARDS WITH UNOBTRUSIVE SKYLIGHTS THAT PROTECT THE STATUES FROM THE ELEMENTS AND BATHE THEM IN NATURAL LIGHT SO FAR SO GOOD THEN MR PEI AND HIS ASSOCIATES IMPLANTED A SERIES OF STONE TIERS INSIDE THE COURTS SO THE SCULPTURES ARE DISPLAYED ON SEVERAL DIFFERENT LEVELS JOINED BY CASCADING STAIRWAYS AT FIRST GLANCE THIS IS AN ARRESTING ARRANGEMENT HUGE MARBLE EFFIGIES CARVED FOR THE ROYAL GARDENS AT MARLY AND VERSAILLES HAVE BEEN RESCUED AND RESETTLED ON THESE TERRACES BUT AFTER YOU LOOK AT THEM FOR A WHILE THEIR WHITEANDGRAY SAMENESS MAKES THEM BLEND INTO THEIR MONOTONE STONE SURROUNDINGS THEY FADE AWAY AS THEY NEVER WOULD IN A GREEN GARDEN AMONG TREES WITH WATER LAPPING NEARBY THEN THERE IS THE PROBLEM OF SCALE MANY OF THESE STATUES ARE HUGE LITERALLY MONUMENTAL BUT IN THE GIGANTIC 75FOOTHIGH PEI COURTS THEY ARE DWARFED BY THE ARCHITECTURE THE THREESTORY PALACE WALLS AND THE SUPERADDED TERRACING THEY LOOK LONELY AND DISTANT THIS SPARSENESS SO COMPLETELY DIFFERENT FROM THE CLAUSTROPHOBIC CROWDING OF THE MAIN PART OF THE FRENCHSCULPTURE COLLECTION IN THE INTERIOR GALLERIES THAT RUN ALONGSIDE THE COVERED COURTS ON SEVERAL LEVELS IS OFFICIALLY DEFENDED AS A SPATIAL ECHO OF THE SCULPTURES' ORIGINAL PLACEMENT IN THE GARDENS OF LOUIS XIV BUT IN THOSE EQUALLY FORMAL SETTINGS THEY WOULD HAVE HAD A GARDEN LANDSCAPE FOR COMPANY IN PEILAND ALL IS STONE AND THE SKY HAS A ROOF THAT REMINDS YOU HOW BIG THE COURTS ARE UNLIKE THE SKY WHICH THOUGH HIGHER IS AN UNBOUNDED UNDEFINED SPACE THAT DOESN'T CALL ATTENTION TO ITSELF THE WORST PART OF THE TWO SCULPTURE COURTS IS THAT THEY OFTEN PREVENT THE VISITOR FROM SEEING THE SCULPTURE FROM CLOSE ENOUGH OR FROM AN ANGLE THAT PERMITS A DIRECT SENSE OF THE WORK IF THE SAME THING WERE TRUE AT MARLY AND THE KING'S GUESTS HAD TO CRANE THEIR NECKS AND PEER AT A STATUE FAR OVERHEAD THEN MARLY ALSO DID A DISSERVICE TO ITS SCULPTURE BUT THE LOUVRE IS A MUSEUM AND SHOULD NOT DELIBERATELY PUT OBSTACLES IN THE WAY OF VIEWING ART AN ARCHITECT OF COURSE WOULDN'T REALLY CARE IF THESE SCULPTURES WERE JUST ELEMENTS OF HIS DESIGN THE MOST IMPORTANT PIECE IN THE PUGET COURT IS PUSHED UP ALMOST FLUSH AGAINST THE EDGE OF A TERRACE PIERRE PUGET'S STATUE OF THE ANCIENT STRONGMAN MILO OF CROTONA WAS THE CENTERPIECE OF A PART OF THE GARDENS OF VERSAILLES ITS SUBJECT IS ALMOST EXCESSIVELY DRAMATIC MILO STANDS IN AN UNSTEADY POSE WITH ONE HAND TRAPPED IN A SPLIT TREE HE HAD TRIED TO COMPLETE THE SPLITTING BY DRIVING HIS HAND INTO THE OPENING BUT THE TREE SNAPPED AROUND THE HAND AND TRAPPED HIM A LION CAME ALONG AND BEGAN TO DEVOUR MILO THE STATUE SHOWS ALL OF THIS AND THE HORROR OF THE SCENE IS REFLECTED IN MILO'S EXPRESSION OF PAIN IT WAS THIS THAT IMPRESSED VISITORS TO VERSAILLES AND THAT INFLUENCED THE SUBSEQUENT COURSE OF FRENCH SCULPTURE BUT YOU CAN BARELY SEE IT FROM BELOW OR FROM A SIDE ANGLE AND NOT AT ALL FROM CLOSEUP WHERE THE ONLY VANTAGE IS A REAR VIEW INTERESTING BUT HOW NICE TO HAVE BEEN ABLE TO WALK AROUND THE STATUE WHERE MR PEI UNDOUBTEDLY DOES SUCCEED IS IN THE TREATMENT OF THE THREESTORY ESCALATOR SYSTEM A SELFCONTAINED UNIVERSE OF MACHINERY AND A STONE WALL THAT ECHOES THE ARCHITECTURE OF THE ORIGINAL BUILDING WITH BIG EYELIKE OPENINGS THAT OFFER STRIKING VIEWS OUTDOORS AS YOU RIDE UPWARD TO THE NEWLY HUNG PAINTINGS AND THE FLOOR OF OBJETS D'ART EVERYTHING FROM CERAMICS TO FURNITURE NEARLY EVERYTHING HAS BEEN BETTER INSTALLED ON THESE TWO FLOORS THAN IT WAS BEFORE ALTHOUGH IT SEEMS PERVERSE TO SKY WORKS BY RUBENS OR REMBRANDT THE 24PAINTING SERIES THAT MARIE DE MEDICI COMMISSIONED FROM RUBENS HAS AN IDEAL ROOM OF ITS OWN THE RENOVATION OF THE RICHELIEU WING LEFT ONLY ONE PART COMPLETELY UNDOCTORED IF RESTORED THE SALONS OF NAPOLEON III OPULENT AND MUSEUMQUALITY STATEMENTS ABOUT THE STYLE OF THE TIME THE OTHER PERFECT INSTALLATION IS ALSO IN A SENSE A RESTORATION BUT THIS ONE WAS CONCEIVED BY AN ARCHITECT FROM THE PEI OFFICE STEVEN F RUSTOW THIS IS THE SEVENTHCENTURY BC ASSYRIAN PALACE OF SARGON II HERE THE MONUMENTAL RELIEFS AND BEARDED CENTAURS ARE BUILT INTO WALLS IN A WAY THAT RECREATES THE REAL FEELING OF BEING IN THE PALACE EVERY CURL OF HAIR CAN BE SEEN AND THE ENSEMBLE FEELS RIGHT ONE HOPES FOR THE SAME SERVICE TO OBJECT AND VISITOR WHEN WORK BEGINS ON THE MOST SACRED PART OF THE LOUVRE THE GRANDE GALERIE WHERE THE ITALIAN PAINTINGS INCLUDING THE MONA LISA NOW HANG IN SPLENDID SQUALOR 9311180074 931118 BUSINESS BRIEFS GENERAL MOTORS CORP'S AC ROCHESTER DIVISION AGREED TO LICENSE CATALYTICCONVERTER MANUFACTURING TECHNOLOGY FROM APPLIED CERAMICS INC ATLANTA A UNIT OF REALIST TECHNOLOGY LTD MCI COMMUNICATIONS CORP WILL PROVIDE CONTINENTAL INSURANCE CO WITH VOICE AND TELECOMMUNICATIONS SERVICES VALUED AT 275 MILLION OVER 4 1/2 YEARS DR HORTON INC AGREED TO ACQUIRE MOST OF THE ASSETS OF JOSEPH M MILLER CONSTRUCTION INC AND ARGUS DEVELOPMENT INC BOTH MINNESOTABASED HOMEBUILDERS TERMS WEREN'T DISCLOSED FIRST UNION CORP OF CHARLOTTE NC WILL ACQUIRE AMERICAN BANCSHARES INC OF MONROE NC FOR 21 MILLION GENERAL ELECTRIC CO SAID ITS INDUSTRIAL & POWER SYSTEMS UNIT RECEIVED FIVE SEPARATE POWERGENERATION EQUIPMENT ORDERS TOTALING 137 MILLION 9311180073 931118 REVIEW & OUTLOOK EDITORIAL COUPON CLIPPING FOR LAWYERS IT WOULD HAVE BEEN FUN TO BE A FLY ON THE WALL AS GENERAL MOTORS NEGOTIATED WITH LAWYERS REPRESENTING THE 645000 TEXANS WHO OWN GM PICKUP TRUCKS WITH SIDEMOUNTED GAS TANKS WE CAN IMAGINE THE HAGGLING GOING SOMETHING LIKE THIS THE LAWYERS WE'LL SETTLE THE CASE FOR 95 MILLION IN LEGAL FEES GM OK BUT WHAT ABOUT YOUR CLIENTS THOUGH ADMITTEDLY FANCIFUL THIS CAPTURES THE ESSENCE OF THE SETTLEMENT APPROVED THIS MONTH BY JUDGE BONNIE LEGGAT FOR THE TEXAS TRUCK OWNERS MEANWHILE IN JUDGE WILLIAM YOHN'S PHILADELPHIA COURTROOM LAWYERS ARE SET TO COLLECT 21 MILLION IN FEES FOR SUING ON BEHALF OF THE 57 MILLION TRUCK OWNERS IN THE OTHER 49 STATES THESE CASES SUGGEST JUST HOW FAR WE'VE COME TOWARD A LEGAL SYSTEM THAT BENEFITS ONLY THE LAWYERS HOW LONG CAN IT BE BEFORE LOCAL SOFTWARE STORES WILL BE OFFERING EVERYONE THIS GAME ON A FLOPPY DISK DEEP POCKETS FOR WINDOWS WE DON'T FAULT GM FOR MAKING LEMONADE OUT OF LEMONS THE COMPANY DIDN'T VOLUNTEER TO BE DRAGGED INTO THE CLASS ACTION SWAMP BUT IT QUICKLY FIGURED OUT THAT YOU ESCAPE BY PAYING OFF THE OTHER SIDE'S LAWYERS ONCE THESE FOLKS SAW THEIR FEES IN THE BAG THEY SIGNED OFF ON GM'S PROPOSED SETTLEMENT FOR THE TRUCK OWNERS THEMSELVES WHICH WILL INVOLVE MAILING OUT COUPONS TO EACH OF THEM WORTH 1000 TOWARD A NEW GM TRUCK AS A GM OFFICIAL ADMITTED THE SETTLEMENT HAS BECOME A MARKETING DEVICE THE COMPANY PLAUSIBLY HOPES TO SELL ENOUGH TRUCKS NOW TO COVER ITS LEGAL BILLS INCLUDING THE COST OF BUYING OFF THE OPPOSING LEGAL TEAM STRUCTURALLY THIS IS COLLUSION BUT SINCE A CLASSACTION PLAINTIFF IS BASICALLY AN ABSTRACT ENTITY NO REAL HARM IS DONE INDEED SURVEYS ORDERED BY THE COURTS HAVE FOUND THAT THE PLAINTIFFS ARE OVERWHELMINGLY SATISFIED WITH THEIR GM TRUCKS SIDEMOUNTED GAS TANKS AND ALL EVEN THE LEAD LAWYER IN THE TEXAS LAWSUIT TIMOTHY CROWLEY WAS MOVED TO RAVE ABOUT THEIR INCREDIBLE BRAND LOYALTY THE MORE PERPLEXING QUESTION IS WHY MR CROWLEY IS ABOUT TO COLLECT A LARGE PAYCHECK FOR SUING ON BEHALF OF THESE HAPPY CUSTOMERS SOMETHING IS WRONG WITH A LEGAL SYSTEM THAT ALLOWS GM OR ANYBODY ELSE TO BE SHANGHAIED FOR ONE OF THESE SHAKEDOWN CRUISES THE DOLLAR SIGNS BEGAN LIGHTING UP IN LAWYERLY EYES AFTER GM WAS HIT WITH A 105 MILLION GEORGIA JURY VERDICT BECAUSE ONE OF ITS TRUCKS BURST INTO FLAMES IN AN ACCIDENT NEXT CAME THE BIZARRE VENDETTA OF THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION WHICH TRIED TO MAKE GM RECALL ALL SIX MILLION TRUCKS THE GOVERNMENT'S OWN DATA SHOWED GM'S TRUCKS TO BE NO MORE DANGEROUS THAN FORD'S OR DODGE'S AND CONSIDERABLY SAFER THAN THE FAMILY SEDAN OUT OF MILLIONS OF TRUCK OWNERS THERE WERE BOUND TO BE A FEW WHO WOULD LOOK AT THIS HULLABALOO AND FIGURE THEY MUST HAVE A GRIPE AGAINST GM BUT WE TEND TO RELATE MORE TO WALT CHERKAS WHO DIDN'T EVEN KNOW HE WAS A PLAINTIFF UNTIL HIS NAME TURNED UP IN THE PRESS AS THE DETROIT NEWS REPORTED MR CHERKAS WAS AT WORK LAST FALL WHEN A LAWYER FROM RONALD SCHIFFRIN'S FIRM PHONED HE ASKED ME A FEW QUESTIONS AND NEXT THING I KNEW I WAS IN THE PAPER' MR CHERKAS SAID EVERYBODY WAS COMING TO MY SHOP SAYING YOU'RE SUING GM I SAID I AM NOT NOW THAT THESE CASES ARE WINDING UP THE PHILADELPHIA LAWYERS ARE JUSTIFYING THEIR FEES BY CITING THE GREAT DIFFICULTY THEY WOULD HAVE CONFRONTED IF THEY ACTUALLY HAD TO PROVE THERE WAS ANYTHING WRONG WITH GM'S TRUCKS WE GUESS IT DOES TAKE A CERTAIN SORT OF LEGAL ACUMEN TO GAME THE SYSTEM SO EXPERTLY THOUGH WE HAVE A HARD TIME BELIEVING THE LAWYERS DESERVE THEIR MONEY FOR PRODUCING A SETTLEMENT IN WHICH ALL THE REAL MONEY GOES TO THE LAWYERS SUCH ABSURDITIES ARE NOW THE LEGAL SYSTEM'S STOCK IN TRADE LAST MARCH AFTER REPEATEDLY SUGGESTING THE CASE WOULDN'T SURVIVE A MOTION FOR SUMMARY DISMISSAL AN ATLANTA JUDGE APPROVED A SIMILAR SETTLEMENT IN A CLASSACTION SUIT AGAINST THE AIRLINES THE LAWYERS WHO GINNED UP THE LITIGATION WALKED OFF WITH 14 MILLION IN CASH WHILE THE 12 MILLION PLAINTIFFS BECAME FODDER FOR DISCOUNT COUPONS DESIGNED TO LURE THEM INTO THE AIR FOR TRIPS THEY WOULDN'T OTHERWISE HAVE TAKEN FUNNY WE THOUGHT THE JUSTICE SYSTEM WAS SUPPOSED TO HAVE SOMETHING TO DO WITH WELL JUSTICE 9311180072 931118 PENA IN RARE MOVE REVIEWS GM PICKUP CASE TRANSPORTATION SECRETARY MAY SOFTEN DEMAND FOR RECALL OF TRUCKS BY DANIEL PEARL AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TRANSPORTATION SECRETARY FEDERICO PENA IS PERSONALLY REVIEWING POLICY OPTIONS IN THE GENERAL MOTORS CORP PICKUP CASE A HIGHLY UNUSUAL MOVE THAT SUGGESTS THE GOVERNMENT MAY BACK AWAY FROM ITS EARLIER REQUEST FOR A RECALL WHILE GOVERNMENT OFFICIALS SAID MR PENA HASN'T MADE A DECISION YET HIS TAKING CHARGE OF THE CASE COULD LEAD TO A COMPROMISE SHORT OF A RECALL GM FACES A HUGE LIABILITY IF IT IS FORCED TO RECALL THE SIX MILLION TRUCKS WITH SIDEMOUNTED GAS TANKS WHICH ALLEGEDLY ARE PRONE TO CATCH FIRE IN SIDEIMPACT COLLISIONS THE TRUCKS WERE BUILT FROM 1973 TO 1987 THE SECRETARY DEFINITELY WANTS A COMPROMISE SAID ONE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION OFFICIAL CLOSE TO THE CASE WHO ASKED NOT TO BE NAMED NORMALLY THE TRAFFIC AGENCY'S ENFORCEMENT STAFF MAKES A RECOMMENDATION AND ITS ADMINISTRATOR AFTER BRIEFING THE TRANSPORTATION SECRETARY DECIDES WHAT ACTION TO TAKE BUT PRESIDENT CLINTON HASN'T YET NAMED A NEW DIRECTOR FOR THE AGENCY I DON'T KNOW IF THERE'S A CONSENSUS WITHIN THE AGENCY ON HOW TO PROCEED A SPOKESMAN FOR MR PENA SAID ADDING THAT THE SECRETARY WOULD MAKE THE DECISION GOVERNMENT OFFICIALS SAID MR PENA HASN'T RECEIVED ANY FORMAL RECOMMENDATION FROM THE TRAFFIC AGENCY MR PENA IS TRYING TO DECIDE THE NEXT MOVE BEFORE A NEW ADMINISTRATOR IS CONFIRMED THE SPOKESMAN SAID IT'S PREMATURE TO SAY WHETHER A COMPROMISE WOULD RESULT FROM MR PENA'S REVIEW BUT THE LAST TIME A TRANSPORTATION SECRETARY TOOK CONTROL OF A RECALL DECISION THERE WAS A COMPROMISE IN THE LATE 1970S FORD MOTOR CORP WAS ACCUSED OF HAVING BUILT 23 MILLION CARS AND TRUCKS FROM 1970 TO 1979 WITH A FATAL FLAW THE VEHICLES ALLEGEDLY JUMPED FROM PARK TO REVERSE ON THEIR OWN THE CASE SEEMED TO BE HEADING FOR A COSTLY CONFRONTATION BETWEEN INDUSTRY AND GOVERNMENT BUT IN 1980 AFTER THENTRANSPORTATION SECRETARY NEIL GOLDSCHMIDT REVIEWED THE CASE THE GOVERNMENT DECLARED THE PROBLEM SOLVED AN AGREEMENT CALLED ON FORD TO NOTIFY OWNERS OF THE TRANSMISSION FLAW ONE PERSON CLOSE TO THE SITUATION SAID A GM SETTLEMENT WOULD BE MUCH TOUGHER BECAUSE THE TWO SIDES ARE FAR APART THE TRAFFIC SAFETY AGENCY ASKED FOR A RECALL OF THE TRUCKS IN APRIL SAYING CRASH TESTS AND FEDERAL FATALITY STATISTICS PROVED THE TRUCKS WERE DANGEROUS MR PENA REVIEWED THE APRIL DECISION BUT FOLLOWED THE RECOMMENDATION OF THE AGENCY'S STAFF GM INSISTS TESTS SHOW ITS TRUCKS ARE SAFE AND DISPUTES STATISTICS INDICATING GM TRUCKS ARE MORE LIKELY TO CATCH FIRE THAN FORD TRUCKS IN FATAL SIDE COLLISIONS ONE REASON MR PENA MIGHT BE INTERESTED IN A COMPROMISE IS THAT SOME OF THE TRUCKS ARE MORE THAN 10 YEARS OLD BY LAW THE TRAFFIC SAFETY AGENCY CAN ONLY FORCE A MANUFACTURER TO RECALL VEHICLES THAT ARE EIGHT YEARS OLD OR NEWER ALSO THE CASE HAS BEEN TRICKY FOR REGULATORS FROM THE START BECAUSE THE TRUCKS MET THE APPLICABLE SAFETY STANDARDS AND HAVE A BETTER SAFETY RECORD THAN MOST CARS ALSO IF A SAFETY COMPROMISE COULD BE FASHIONED IT WOULD FIT WITH THE CLINTON ADMINISTRATION'S EFFORTS TO WORK COOPERATIVELY WITH DETROIT ON ISSUES LIKE THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE ENVIRONMENT BUT MR PENA HAS INSISTED THE GM CASE WILL BE DECIDED INDEPENDENTLY AND ON ITS MERITS GM SAID IT HADN'T BEEN APPROACHED TO DISCUSS ANY POSSIBLE COMPROMISE BUT WOULDN'T COMMENT FURTHER IF MR PENA DECIDES TO PROCEED AGAINST GM THE NEXT STEP WOULD BE TO OPEN A FORMAL PROCEEDING THAT WOULD LAUNCH A ROUND OF PUBLIC HEARINGS AND IF THE AGENCY RULES THERE IS A DEFECT A LENGTHY COURT CASE ALMOST CERTAINLY WOULD FOLLOW GM ALREADY HAS REACHED A CLASS ACTION SETTLEMENT WITH ATTORNEYS REPRESENTING TRUCK OWNERS UNDER THE PROPOSED SETTLEMENT TRUCK OWNERS WOULD RECEIVE 1000 COUPONS GOOD FOR PURCHASE OF A NEW GM VEHICLE THE SETTLEMENT HAS BEEN APPROVED BY A STATE COURT JUDGE IN TEXAS BUT A FEDERAL JUDGE IN PHILADELPHIA STILL MUST APPROVE IT FOR THE REST OF THE US SAFETY ADVOCATES HAVE CRITICIZED THE SETTLEMENT FOR FAILING TO TAKE WHAT THEY SAY ARE DANGEROUS TRUCKS OFF THE ROAD BUT A COURT SETTLEMENT COULD SET THE STAGE FOR MR PENA TO SEEK AN ADDITIONAL STEP SUCH AS THE ISSUING OF WARNING LABELS TO OWNERS OR POTENTIAL BUYERS OF THE TRUCKS ANY SOLUTION SHORT OF A RECALL HOWEVER WOULD LEAVE GM VULNERABLE TO DOZENS OF PRODUCTLIABILITY SUITS IN FEBRUARY AN ATLANTA JURY AWARDED THE FAMILY OF A BOY WHO DIED IN A GM TRUCK 1052 MILLION IN DAMAGES EARLIER THIS MONTH ON THE DAY A TEXAS JUDGE APPROVED THE CLASS ACTION SETTLEMENT A 22YEAROLD DIED AFTER HIS 1979 CHEVROLET HIT A GUARD RAIL AND BURST INTO FLAMES SAFETY ADVOCATES BLAMED THE SIDEMOUNTED GAS TANKS MEANWHILE THE SEARCH FOR A NEW TRAFFIC AGENCY ADMINISTRATOR HAS SLOGGED ON WITH NO END IN SIGHT SEVERAL MONTHS AGO MR PENA SUBMITTED THE NAME OF RICARDO MARTINEZ AN EMERGENCYMEDICINE SPECIALIST AT STANFORD UNIVERSITY BOTH SAFETY ADVOCATES AND CAR MAKERS WERE HAPPY WITH DR MARTINEZ BUT THE WHITE HOUSE IS STILL GOING THROUGH BACKGROUND CHECKS AND HASN'T MADE AN ANNOUNCEMENT SEPARATELY STANDARD & POOR'S CORP AFFIRMED ITS RATINGS ON DEBT OF GM AND ITS SUBSIDIARIES BUT SAID IT STILL CONSIDERS GM'S OUTLOOK TO BE NEGATIVE DUE TO ITS SLUGGISH NORTH AMERICAN OPERATIONS ALTHOUGH IT PRAISED GM'S PROPOSAL TO REDUCE ITS UNFUNDED PENSION LIABILITY BY CONTRIBUTING 185 MILLION CLASS E SHARES TO ITS PENSION FUND S&P SAID A LACK OF SIGNIFICANT IMPROVEMENT IN THE NORTH AMERICAN OPERATIONS COULD RESULT IN A CREDIT DOWNGRADE WITHIN THE NEXT FEW YEARS GM AND ITS SUBSIDIARIES HAVE ABOUT 694 BILLION IN DEBT OUTSTANDING MEANWHILE GM IS ACCELERATING PLANS TO MAKE ITS PARTSMAKING OPERATION PROFITABLE BY 1995 GM TOLD ANALYSTS EARLIER THIS WEEK THAT ITS AUTOMOTIVE COMPONENTS GROUP WHICH HAD SALES OF 24 BILLION LAST YEAR HAD IMPROVED ITS BOTTOM LINE BY 18 BILLION ON A PRETAX BASIS SINCE 1991 BUT ABOUT 20 OF THE BUSINESS IS STILL UNPROFITABLE 9311180071 931118 WHO'S NEWS WILLIS CORROON GROUP PLC WILLIS CORROON GROUP PLC LONDON WILLIAM A SCHREYER 65 YEARS OLD WAS NAMED TO THE BOARD OF THIS REINSURANCE BROKERING COMPANY MR SCHREYER FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MERRILL LYNCH & CO SUCCEEDS ARTHUR I VORYS 70 WHO IS RETIRING AT THE END OF THIS YEAR THE BOARD NOW HAS 16 DIRECTORS 9311180070 931118 CORRECTIONS & AMPLIFICATIONS A FIVEPOINT SHAWMUT NATIONAL CORP PROGRAM TO BOOST LENDING IN MINORITY COMMUNITIES DIDN'T STEM FROM A SETTLEMENT WITH THE MASSACHUSETTS ATTORNEY GENERAL A PAGEONE ARTICLE YESTERDAY INCORRECTLY IMPLIED THAT THE PROGRAM WAS PART OF THE SETTLEMENT WHICH ESTABLISHED A SEPARATE SHAWMUT EFFORT TO IMPROVE MORTGAGE TERMS IN LOWINCOME AREAS NOTES TAKEN DURING AN OCT 15 CONFERENCE CALL OF FEDERAL RESERVE OFFICIALS AND RELEASED BY THE HOUSE BANKING COMMITTEE WERE TAKEN BY A STAFFER AT THE FEDERAL RESERVE BANK OF CLEVELAND AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE NOTES WERE TAKEN BY THE CLEVELAND FED'S PRESIDENT AMVESTORS FINANCIAL CORP SAID THAT AFTER COMPLETING THE SALE OF 35 MILLION NEW SHARES OF COMMON STOCK LAST WEEK IT HAS ABOUT 96 MILLION SHARES OUTSTANDING AN ARTICLE MONDAY INCORRECTLY STATED THAT THE COMPANY WOULD HAVE 171 MILLION SHARES OUTSTANDING AFTER THE SALE 9311180069 931118 CREDIT MARKETS INVESTORS IN US MEXICO STAY ON THE SIDELINES IN ANTICIPATION OF VOTE ON FREE TRADE ACCORD BY THOMAS T VOGEL JR AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MANY INVESTORS WERE RELUCTANT YESTERDAY TO STOCK UP ON US OR MEXICAN BONDS CONVINCED THEY'D RECEIVED ALL POSSIBLE PRICE GAINS FROM A FREETRADE PACT THAT HADN'T BEEN VOTED ON AFTER A MONTH OF WORRIES THE MEXICAN AND AMERICAN BOND MARKETS WERE REMARKABLY CALM THAT'S BECAUSE MANY INVESTORS BELIEVED PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT BY THE HOUSE OF REPRESENTATIVES WAS ASSURED CONCERNS ABOUT POLITICS ALSO PLAGUED A YANKEE BOND OFFERING LAUNCHED TUESDAY BY A CHINESE AGENCY AND A GLOBAL BOND OFFERING FROM KOREA LAUNCHED YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED JUST UNDER 1/4 POINT YESTERDAY OR LESS THAN 250 FOR A BOND WITH 1000 FACE VALUE TO 100 29/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE ROSE TO 617 FROM 616 TUESDAY OTHER TREASURY SECURITIES POSTED SMALLER PRICE DROPS DESPITE NEWS OF AN UNEXPECTEDLY LARGE JUMP IN OCTOBER HOUSING STARTS SUCH NEWS OFTEN FUELS FEARS OF INFLATION WHICH REDUCES THE VALUE OF FIXEDRATE INVESTMENTS BUT INVESTORS SEEMED MORE INTERESTED IN THE HAPPENINGS IN WASHINGTON IN THE US BOND MARKET TRADERS AND MONEY MANAGERS WERE CONVINCED THAT PRESIDENT CLINTON WOULD PULL OUT A VICTORY FOR NAFTA THAT HELPED STEADY THE PRICE OF THE 30YEAR TREASURY WHOSE PRICE TUMBLED IN RECENT WEEKS AS INVESTORS FEARED THAT INFLATION WAS HEATING UP IT'S NOT THAT INVESTORS BELIEVE NAFTA WILL HAVE A POWERFUL EFFECT ON BOND PRICES BUT THEY BELIEVE ITS PASSAGE WILL BODE WELL FOR OTHER INTERNATIONAL TRADE AGREEMENTS INCLUDING IMPORTANT EUROPEAN ONES THESE TRADERS AND INVESTORS SAY THE GLOBALIZATION OF TRADE WILL HOLD DOWN INFLATION LIBERALIZATION OF TRADE MEANS EFFICIENCY AND EFFICIENCY MEANS LESS INFLATIONARY PRESSURE OVER TIME SAID JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS THE UPSIDE FOR THE US BOND MARKET FROM NAFTA'S PASSAGE IS LIMITED BUT THE DOWNSIDE FROM ITS REJECTION IS SIGNIFICANT SAID ADAM GRESHIN A PORTFOLIO MANAGER AT SCUDDER STEVENS & CLARK A MONEYMANAGEMENT FIRM YESTERDAY SOME MONEY MANAGERS WERE ARRANGING TO BE IN TOUCH WITH TOKYO TRADERS OVERNIGHT TO BEGIN UNLOADING LONGTERM TREASURYS IN THE EVENT THE TREATY IS REJECTED THE MARKET FOR LATIN AMERICAN BONDS HAS STAGED AN IMPRESSIVE RALLY SINCE LAST WEEK'S DEBATE BETWEEN TEXAS BILLIONAIRE ROSS PEROT AND VICE PRESIDENT AL GORE MANY INVESTORS VIEWED MR GORE'S PERFORMANCE AS A DECISIVE BLOW TO MR PEROT'S EFFORTS TO RALLY OPPOSITION TO NAFTA ACCORDING TO TRADERS AT MERRILL LYNCH FIDELITY INVESTMENTS AND ING SECURITIES THE US SECURITIES SUBSIDIARY OF INTERNATIONALE NEDERLANDEN BANK OF THE NETHERLANDS THE PAST MONTH HAD SOME OF THE HEAVIEST VOLUME THEY HAVE SEEN SINCE THE DEBATE FOR EXAMPLE THE PRICE OF MEXICAN BRADY PAR BONDS HAS RISEN ABOUT EIGHT POINTS TO 82 OR ABOUT 80 FOR A BOND WITH 1000 FACE VALUE SAID MANUEL MEJIA HEAD OF DEBT TRADING FOR EMERGING MARKETS AT MERRILL LYNCH BRADY PAR BONDS ARE MADE FROM DEFAULTED MEXICAN GOVERNMENT DEBT THAT HAS BEEN CONVERTED INTO BONDS AT FACE VALUE AS PART OF A DEBT RESTRUCTURING THERE HAVE BEEN SIMILAR PRICE GAINS IN OTHER LATIN AMERICAN DEBT MARKETS SAID MR MEJIA MANY TRADERS IN THESE MARKETS ARE RUNNING RAGGED AFTER A MONTH OF SEEMINGLY NONSTOP ACTIVITY ING AND MERRILL LYNCH OFFICIALS ARE BRACING FOR THE POSSIBILITY OF HEAVY TRADING IN REACTION TO THE NAFTA VOTE MERRILL LYNCH HAS FLOWN A HANDFUL OF TRADERS TO LONDON TO BE READY WHEN THE MARKET OPENS THERE EARLY TODAY SAID MR MEJIA AT ING MANY TRADERS SAID THEY PLANNED TO BE AT THEIR DESKS BY 3 AM HOWEVER MANY OF THESE TRADERS AND INVESTORS WERE HOPEFUL THAT NAFTA WOULD BE APPROVED OUR FEELING IS THAT PEOPLE SEE THAT THIS IS A DONE DEAL SAID MR MEJIA ROBERT BECKWITT A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS ONE OF THE LARGEST US INVESTORS IN MEXICO DIDN'T EVEN WANT TO FATHOM A GUESS ON WHAT WOULD HAPPEN TO THE DEBT MARKETS IF NAFTA WERE REJECTED MR BECKWITT SAID HE'S CONVINCED THAT EVEN IF NAFTA DIDN'T PASS MEXICO WOULD BE A GOOD BET BECAUSE OF ITS IMPROVING ECONOMIC FUNDAMENTALS MR BECKWITT PREDICTED THAT PASSAGE OF NAFTA WOULD PROMPT AN UPGRADE OF MEXICO'S CREDIT RATING TO INVESTMENT GRADE BY THE END OF THE 1994 FIRST QUARTER AN INVESTMENTGRADE RATING WOULD BE GOOD NEWS FOR MEXICAN SECURITIES HE SAID BECAUSE DEMAND FOR THEM WOULD INCREASE DRAMATICALLY MANY INVESTORS ARE PROHIBITED FROM BUYING MEXICAN SECURITIES BECAUSE THEY AREN'T INVESTMENTGRADE MEXICO'S LONGTERM FOREIGN CURRENCY RATINGS FROM MOODY'S INVESTORS SERVICE AND STANDARD & POOR'S ARE BA2 AND DOUBLEBPLUS RESPECTIVELY THE LOWEST INVESTMENTGRADE RATINGS FROM THE MOODY'S AND S&P ARE BAA3 AND TRIPLEBMINUS RESPECTIVELY OFFICIALS AT MOODY'S AND S&P SAID NAFTA'S PASSAGE IN ITSELF WOULDN'T MERIT A RATINGS UPGRADE POLITICS ALSO WAS ON THE MINDS OF INVESTORS WHO PONDERED A 135 BILLION GLOBAL OFFERING OF KOREA ELECTRIC POWER SOURCES CLOSE TO THE UNDERWRITERS SAID THE 10YEAR DEAL WAS SOLD OUT LAST NIGHT WITH BONDS PRICED ABOUT 090 PERCENTAGE POINT OVER THE 10YEAR US TREASURY NOTE GLOBAL BONDS WHICH ARE USUALLY DOLLARDENOMINATED ARE SOLD AND TRADED IN MAJOR MARKETS WORLDWIDE THE SOUTH KOREA DEAL IS ONE OF THE FIRST IN WHICH THE ISSUER HAD LESS THAN DOUBLEA CREDIT STATUS THE UTILITY'S OUTSTANDING SENIOR DEBT IS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P LEHMAN BROTHERS WAS THE LEAD UNDERWRITER THE UNDERWRITING SOURCE SAID 60 OF THE BONDS WERE SOLD IN THE US AND ACKNOWLEDGED THAT UNDERWRITERS HAD TO OVERCOME INVESTOR WORRIES ABOUT KOREA'S POLITICAL ENVIRONMENT IN RECENT WEEKS CONCERNS HAVE ARISEN ABOUT NORTH KOREA'S ACCESS TO NUCLEAR WEAPONS A 150 MILLION DEBT OFFERING FROM GUANGDONG INTERNATIONAL TRUST & INVESTMENT STRUGGLED YESTERDAY WALL STREET SYNDICATE OFFICIALS SAID THE 10YEAR NONCALLABLE NOTES WERE SOLD AT A PRICE OF 9982 TO YIELD 6775 OR 115 PERCENTAGE POINTS MORE THAN THE 10YEAR TREASURY NOTE BUT MONEY MANAGERS SAID UNDERWRITER CS FIRST BOSTON WAS HOLDING A LOT OF THE BONDS AND LOOKING FOR BUYERS AT HIGHER YIELDS THERE WERE BIDS FOR THE NOTES WITH YIELDS OF 128 PERCENTAGE POINTS ABOVE THE 10YEAR TREASURY NOTE THIS SUGGESTS THAT INVESTORS WERE DEMANDING A STIFF PREMIUM TO PROTECT THEM FROM POTENTIAL POLITICAL TURMOIL IN CHINA THE YIELDCREDIT PROFILE JUST ISN'T VERY ATTRACTIVE SAID RAY GOODNER A PORTFOLIO MANAGER AT IDS FINANCIAL SERVICES THE COMPANY IS AN ECONOMICDEVELOPMENT AGENCY BACKED BY THE GUANGDONG PROVINCIAL GOVERNMENT THE DOLLARDENOMINATED OFFERING IS RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P OFFICIALS AT FIRST BOSTON DECLINED TO COMMENT BECAUSE IT IS A PRIVATE PLACEMENT A SIMILAR DEBT OFFERING FROM CHINA RECEIVED A MUCH WARMER WELCOME LAST SUMMER CHINA INTERNATIONAL TRUST & INVESTMENT SOLD 250 MILLION OF NONCALLABLE 10YEAR NOTES AT A YIELD SPREAD OF ONE PERCENTAGE POINT OVER 10YEAR TREASURY NOTES THE SPREAD HAS SINCE WIDENED TO 105 BASIS POINTS THE OFFERING WAS RATED THE SAME AS YESTERDAY'S OFFERING FROM CITIC THE CITIC OFFERING CAME BEFORE CHINA'S BID TO HOST THE OLYMPICS WAS REJECTED AND THE COUNTRY HAS SINCE STRAYED FROM ITS LIBERALIZATION POLICIES SAID JAMES SWANSON SENIOR VICE PRESIDENT OF MFS ASSET MANAGEMENT GROUP ALSO YESTERDAY THE TREASURY ANNOUNCED THAT IT WOULD SELL 17 BILLION OF TWOYEAR NOTES AND 11 BILLION OF FIVEYEAR NOTES NEXT WEEK THE SIZE OF THE PLANNED TWOYEAR NOTE AUCTION IS A RECORD WALL STREET TRADERS SHRUGGED OFF NEWS OF A FEDERAL RESERVE INQUIRY INTO THEIR HOLDINGS OF THE 6 1/4 30YEAR TREASURY BOND FED OFFICIALS HAVE REFUSED TO SAY WHAT SPARKED THEIR INTEREST IN THE ISSUE BUT SOME GOVERNMENT BOND DEALERS HAVE COMPLAINED THAT THERE IS A SHORTAGE A FACTOR CONTRIBUTING TO THE SHORTAGE THEY SAY IS THE GOVERNMENT'S DECISION TO REDUCE AUCTIONS OF THE 30YEAR BOND TO TWICE A YEAR FROM FOUR TIMES ANNUALLY AS PART OF A PROGRAM TO SHORTEN THE AVERAGE MATURITY OF GOVERNMENT BORROWINGS IN THE WHENISSUED MARKET LATE YESTERDAY THE TWOYEAR NOTE SLATED TO BE AUCTIONED ON MONDAY YIELDED 413 WHILE THE FIVEYEAR NOTE SLATED TO BE AUCTIONED ON TUESDAY YIELDED 502 THESE MONTHLY AUCTIONS USUALLY OCCUR ON TUESDAY AND WEDNESDAY BUT HAVE BEEN MOVED UP BECAUSE US TREASURY MARKETS WILL CLOSE EARLY WEDNESDAY IN ADVANCE OF THE THANKSGIVING HOLIDAY THE MARKET WILL REOPEN ON FRIDAY FOR AN ABBREVIATED TRADING SESSION A NEW WAVE OF CORPORATE DEBT OFFERINGS HIT THE MARKET WITH MORE THAN 16 BILLION PRICED ADVANTA PRICED 150 MILLION OF THREEYEAR NOTES BLACK & DECKER PRICED 250 MILLION OF SEVENYEAR DEBT AND CHRYSLER'S CHRYSLER FINANCIAL UNIT PRICED 250 MILLION OF THREEYEAR FLOATING RATE NOTES THE STUDENT LOAN MARKETING ASSOCIATION PRICED 700 MILLION OF FOURYEAR PAPER IN THE HIGHYIELD MARKET CHEVY CHASE SAVINGS BANK FSB ISSUED 150 MILLION OF 12YEAR SUBORDINATED CAPITAL NOTES ONE INVESTOR SAID THE ISSUE SOLD VERY QUICKLY BECAUSE IT IS BELIEVED CHEVY CHASE'S DEBT RATING WILL BE UPGRADED MOODY'S HAS RATED IT SINGLEB2 WHILE S&P GIVES IT A SINGLEB RATING DEBT SECURITIES OF BRITAIN'S TIPHOOK FINANCIAL CONTINUED TO FALL IN PRICE ITS 10 3/4 COUPON GUARANTEED NOTES OF 2002 DROPPED FOUR POINTS OR 40 FOR A BOND WITH 1000 FACE VALUE TO 63 THE YIELD ROSE TO 197 FROM 184 BANKS HAVE BEEN PRESSURING ITS PARENT TIPHOOK PLC TO SELL ITS CONTAINER DIVISION PERCEIVED AS ITS STRONGEST UNIT ONE TRADER SAID THE PRIMARY MARKET AGAIN WAS THE HOT SPOT IN MUNICIPAL BOND DEALINGS MORE THAN 800 MILLION OF MUNIS WERE PRICED WHICH FOLLOWED TUESDAY'S SUPPLY SPURT OF MORE THAN 3 BILLION AMONG YESTERDAY'S OFFERINGS WERE THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S 300 MILLION OF 91ST SERIES CONSOLIDATED REVENUE BONDS WHICH WERE WON BY A MERRILL LYNCH GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 52027 YIELDS FOR REOFFERED BONDS RANGE FROM 325 IN 1995 TO 525 IN 2012 THERE WAS AN UNSOLD BALANCE OF ABOUT 19 MILLION YESTERDAY AFTERNOON MERRILL LYNCH SAID THE CALIFORNIA STATE PUBLIC WORKS BOARD'S 177 MILLION OF LEASE REVENUE BONDS WERE BROUGHT TO THE MARKET BY A PAINEWEBBER GROUP YIELDS RANGE FROM 350 IN 1995 TO 575 IN 2019 IN THE SECONDARY MARKET MUNIS WERE GENERALLY 1/8 POINT LOWER TO 1/8 POINT HIGHER THERE WASN'T MUCH PRICE ACTION DUE TO CAUTION BEFORE THE SCHEDULED NAFTA VOTE TRADERS SAID LOS ANGELES'S 520 OF 2021 WASTEWATER SYSTEM REFUNDING BONDS ARE UNCHANGED AT 95 TO 95 1/2 YIELDING 552 BATTERY PARK CITY AUTHORITY'S 336 MILLION OF SERIES 1993A SENIOR REVENUE REFUNDING BONDS AND ITS 2744 MILLION OF SERIES 1993A AND SERIES 1993B JUNIOR REVENUE REFUNDING BONDS ARE EXPECTED TO BE PRICED BY A MORGAN STANLEY GROUP TODAY A GOLDMAN SACHS GROUP ALSO IS GETTING SET TO PRICE 2621 MILLION OF REFUNDING BONDS FOR THE HOUSING NEW YORK CORP MOST MORTGAGE SECURITIES BARELY TRADED YESTERDAY AND HEADED INTO THE CLOSE AT SOFTER LEVELS A HANDFUL OF COUPONS FIRMED DURING THE DAY BUT BENEFITED FROM TECHNICAL BUYING RATHER THAN ANY FUNDAMENTAL CHANGE IN MARKET PERCEPTION COUPONS CREATED FROM SOCALLED BALLOON MORTGAGES FIRMED BECAUSE ANALYSTS HAVE DECIDED THEY'VE BECOME TOO CHEAP THE FIVEYEAR GOLD COUPONS FOR DECEMBER DELIVERY FROM THE FEDERAL HOME LOAN MORTGAGE CORP FOR EXAMPLE WERE UP 7/32 NEAR THE CLOSE AT 99 13/32 THE 6 1/2 30YEAR ISSUES FOR DECEMBER DELIVERY FINISHED LOWER GINNIE MAES WERE DOWN 2/32 AT 99 14/32 FREDDIE MAC GOLDS AND FANNIE MAES WERE OFF 6/32 AT 99 16/32 AND 99 9/32 RESPECTIVELY TRADE IN THE MORTGAGE MARKET AS IN TREASURYS DEPENDS ON THE OUTCOME OF THE HOUSE VOTE ON NAFTA MORTGAGE PLAYERS WANT TO SEE WHAT THE TREASURY YIELD CURVE WILL LOOK LIKE JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9311180068 931118 INTERNATIONAL JR EAST'S PRETAX PROFIT FELL 12 FOR FIRST HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO EAST JAPAN RAILWAY CO THE COMPANY WHOSE RECENT LISTING CAUSED HAVOC IN JAPANESE STOCK TRADING REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT EDGED DOWN 12 TO 7363 BILLION YEN 6898 MILLION IN THE FIRST HALF ENDED SEPT 30 FROM A YEAR EARLIER THE RAILTRANSPORTATION COMPANY SAID THE WEAK ECONOMY AND THE UNUSUALLY COOL RAINY SUMMER WEIGHED HEAVILY ON TRAVEL DEMAND SALES WERE NEARLY FLAT AT 99521 BILLION YEN COMPARED WITH 1001 TRILLION YEN 938 BILLION A YEAR AGO A COMPANY OFFICIAL SAID JR EAST EXPECTS SEVERE BUSINESS CONDITIONS THROUGH NEXT YEAR AND HOPES TO MAINTAIN PROFIT LEVELS BY STRENGTHENING MARKETING AND BUSINESS OPERATIONS THE GOVERNMENT HAD HOPED THE OCT 26 PARTIAL PRIVATIZATION OF JR EAST WOULD REINVIGORATE THE ANEMIC JAPANESE MARKET AT FIRST IT DID WITH THE STOCK SURGING 58 IN THE FIRST DAY OF TRADING BUT THE STOCK THEN GAVE BACK MOST OF THE GAINS AS THE STATEOWNED COMPANY PUMPED ADDITIONAL SHARES INTO THE MARKET THE WILD TRADING ASSOCIATED WITH THE HUGE OFFERING SENT THE NIKKEI STOCK INDEX TUMBLING AND PROBABLY FRIGHTENED MANY OF THE SMALL INVESTORS THE GOVERNMENT WAS HOPING TO LURE BACK TO THE MARKET 9311180067 931118 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO CORPORATE DISASTER GIFTS EXPAND AS SOCIETY ASKS MORE OF THE PRIVATE SECTOR NEARLY ALL OF 92 FIRMS POLLED IN 1992 BY NEW YORK'S CONFERENCE BOARD GAVE SOME FORM OF AID CASH GOODS VOLUNTEERS IN THE WAKE OF 1992'S TWO HURRICANES RIOTS IN LOS ANGELES AND OTHER ILLS THE POLL COUNTS 24 MILLION WITH 10 MILLION ALONE FROM ARCO IN LA FOR RIOT AID THE 1993 FLOOD FEEDS THE GROWING CORPORATE TREND AS DEMANDS ON THE PRIVATE SECTOR MOUNT THE REPORT SAYS MOST SURPRISING THE HIGH RATIO OF AID INITIATED BY WORKERS AND UNITS OUTSIDE HEADQUARTERS SAYS THE BOARD'S MELISSA BERMAN BUT TARGETED GIFTS MIGHT CRIMP GENERAL RELIEF FUNDS NEEDED FOR OVERALL DISASTER COSTS THE AMERICAN RED CROSS AIMS TO HEAD OFF ANY SHORTFALL BY ESTIMATING FOR FIRMS EACH DISASTER'S NEEDS MONSANTO'S AGRICULTURAL GROUP THE LEAD FLOOD DONOR WANTED ITS GIFTS TO FOCUS ON RURAL AREAS SO THE RED CROSS RURAL RELIEF FUND WAS BORN THE UNIT GAVE ABOUT HALF THE TOTAL 4 MILLION TO 45 MILLION IN THE RURAL RELIEF FUND FOR THE FLOOD ALONE CORPORATE CASH GIFTS SO FAR TO THE RED CROSS TOTAL ABOUT 17 MILLION OR 40 OF ALL CASH GIVEN INTERACTIVE MUSIC ALBUMS SOUND OUT BOTH THE RECORD AND COMPUTER MARKETS THE FIRST INTERACTIVE COMPACTDISK MUSIC ALBUMS IN WHICH THE AUDIO OR VIDEO MAY BE ALTERED BY USERS ARE SLIPPING INTO STORES TODD RUNDGREN'S 10SONG DISK FOR USE IN PHILIP'S COMPACTDISK INTERACTIVE PLAYER WHICH PLUGS INTO A TV WAS RELEASED LAST MONTH THE 2498 DISK LETS LISTENERS MIX FOURSECOND MUSIC PHRASES IN COUNTLESS WAYS THE PETER GABRIEL AND DAVID BOWIE CDROM DISKS NOW IN THE WORKS WOULD LET USERS IN PART MAKE THEIR OWN MUSIC VIDEO IT'S A WAY TO REACH TEENAGERS WHO'VE GROWN UP PLAYING WITH VIDEO GAMES SAYS CHRISTIAN JORG OF BERTELSMANN MUSIC GROUP WHICH IS MAKING THE BOWIE DISK JANICE MALONEY OF DIGITAL MEDIA MAGAZINE SAYS AT THIS POINT THE MARKET IS GOING TO BE PEOPLE IN LOVE WITH CDROMS ALTHOUGH SHE EXPECTS A RENTAL MARKET TO DEVELOP FOR THE PRODUCT RECORD FIRMS MAY FACE ADDED ROYALTY COSTS MR RUNDGREN GOT A HIGHER THAN STATUTORY RATE SINCE HIS COMPOSITIONS WERE DESIGNED TO BE MADE INTO VARIOUS VERSIONS EARLY ORDERS HAVE CATALOGERS CROONING ABOUT A MERRY HOLIDAY SEASON A MONTH INTO MAIL ORDER'S CHRISTMAS SEASON FIRMS ALREADY ARE UPBEAT ORDERS ARE AT OR BETTER THAN EXPECTED SAYS JACK ROSENFELD OF HANOVER DIRECT IN NEW JERSEY WHICH HAS 15 CATALOGS TODD BARR OF KURT SALMON ASSOCIATES RESEARCH FIRM RECKONS THAT THIS YEAR REVENUE PER CATALOG MAILED IS UP 17 DUE TO LARGER AVERAGE ORDERS AND HIGHER RESPONSE RATES THERE DOESN'T SEEM TO BE ANY FALLING OFF SO FAR HE SAYS CATALOGERS ARE BEEFING UP STAFF AND INVENTORY SO AS NOT TO BE CAUGHT SHORT BY THE USUAL LASTMINUTE CROWD WHICH THEY EXPECT TO BE BIGGER THIS YEAR LILLIAN VERNON IN NEW YORK HIRES 20 MORE PEOPLE THIS SEASON THAN LAST YEAR HANOVER DIRECT EXPLOITING THE LATEORDER TREND NOW OFFERS EXPEDITED SHIPPING OF ORDERS FROM ITS GUMP'S CATALOG WITHOUT CHARGE WILLIAMSSONOMA TESTS INCENTIVES TO GET PEOPLE TO ORDER EARLIER THE SAN FRANCISCO COMPANY SAYS IT HELD OR CUT PRICES HELPED BY THE STRONGER DOLLAR'S IMPACT ON IMPORTED PRODUCTS HOBBIES RIDE HIGH THE HOBBY INDUSTRY ASSOCIATION ESTIMATES THAT SALES OF CRAFTS ITEMS FROM HOWTO BOOKS TO BEADS AND PAINTS GREW 32 TO 894 BILLION IN 1992 AND MAY REACH 963 BILLION THIS YEAR THE AMERICAN WOODWORKER MAGAZINE PUTS SPENDING BY AMATEUR WOODWORKERS AT 10 BILLION A YEAR HOW TO KEEP YOUR CAR SAFE BURY IT SAYS BRITAIN'S PARCAR LTD FOR ABOUT 20000 THE COMPANY IN EUROPE WILL INSTALL A MOTORIZED UNDERGROUND BOX TO EASILY TUCK THE FAMILY CAR UNDER THE DRIVEWAY LAWN PATIO AND EVEN THE FLOWER BED THEY'RE NOT JUST FUN THEY'RE ALSO SELFREFLECTIVE THAT'S HOW CULTURAL EXCHANGE CORP MINNEAPOLIS DESCRIBES ITS BOOKS GAMES AND DOLLS FOR MINORITY CHILDREN THAT INCLUDE CHARACTERS WITH CULTURALLY CORRECT FEATURES AND DRESS HERE'S THE BUZZ PAGING PRICES FOR NATIONWIDE SERVICE ARE POISED TO FALL THE ABILITY TO BE BEEPED ANYWHERE IN THE US SOON WILL BE MORE AFFORDABLE THANKS TO NEW COMPETITORS PRICES FOR NATIONAL SERVICE A NICHE AIMED AT THE BUSINESS TRAVELER HAVE HOVERED AT MORE THAN 60 A MONTH WHILE COMPETITION HAS PUSHED LOCAL FEES TO UNDER 13 BUT THIS MONTH TEXAS' PAGING NETWORK WILL BEGIN A 2995 NATIONAL SERVICE METROCALL IN VIRGINIA AND ARCH COMMUNICATIONS IN MASSACHUSETTS PLEDGE EVEN LOWER FEES METROCALL'S SERVICE IS SLATED TO START THIS MONTH AND ARCH'S IN MARCH LEADING NATIONAL CARRIERS LIKE MOBILE TELECOMMUNICATION TECHNOLOGIES' SKYTEL AND BELLSOUTH'S MOBILECOMM WILL HAVE TO RESPOND BUT THE CUTS MAY NOT COME RIGHT AWAY SAYS ELLIOTT HAMILTON OF CONSULTANT MTAEMCI IN WASHINGTON IT NOW IS EASIER TO BUILD A NATIONAL NETWORK BECAUSE MORE FIRMS ALREADY HAVE LOCAL SYSTEMS AROUND THE COUNTRY THE INCENTIVES HIGHER MARGINS AND USERS WHO ARE IDEAL CUSTOMERS FOR FUTURE MORE SOPHISTICATED PRODUCTS NATIONAL USERS NOW MAKE UP ONLY 3 OF THE 17 MILLION PAGING SUBSCRIBERS IN THE US SAYS TELOCATOR A TRADE GROUP BRIEFS HIGHFLIERS PASSENGERS THIS WEEK ON CONTINENTAL AIRLINE'S NEW TRANSUS BUSINESSCLASS SERVICE CAN JOIN A STOCKPICKING CONTEST THE 10STOCK PORTFOLIOS WILL BE TRACKED OVER 30 DAYS NORTHLAND CRANBERRIES INC'S THEME FOR ITS '93 ANNUAL REPORT IS LOOKING BEYOND THE MARSH 9311180066 931118 TECHNOLOGY COMEDIANS CHILI COOKOFFS AND YES EVEN COMPUTERS ENERGIZE COMDEX SHOW BY DENNIS KNEALE STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS THE FALL RITE OF COMDEX IS IN FULL FLOWER AND THE HAWKERS AND GAWKERS ARE OUT IN FORCE SOME 170000 PEOPLE ARE JAMMING HOTELS AND PARKING LOTS AND ENDURING DISNEY WORLDCLASS LINES HERE THIS WEEK TO LOOK AT THE WARES HARD AND SOFT OF 2200 EXHIBITORS AT THE ANNUAL COMPUTER TRADE SHOW THE CROWDS AT COMDEX WHERE ATTENDANCE IS UP 17 FROM A YEAR AGO ARE A SIGN OF THE REBOUND IN THE PERSONALCOMPUTER MARKET WHICH HAS GROWN AT A HEALTHY RATE OF 15 OR MORE THIS YEAR THE INDUSTRY HOPES TO KEEP UP THE PACE OR ACCELERATE IT NEXT YEAR WITH THE TECHNOLOGY ON DISPLAY HERE THERE ARE DISK DRIVES AND WIRELESS RECEIVERS THE SIZE OF A THICK AMERICAN EXPRESS CARD EVERSMALLER NOTEBOOK COMPUTERS AND THE LATEST ROUND OF ATTEMPTS TO ALLOW YOU TO SCRAWL ON YOUR COMPUTER TOUCH IT TALK TO IT AND HAVE IT TALK BACK TO YOU MUCH OF THAT NEW DIRECTION IS AIMED AT PROVIDING AN AWESOME AMOUNT OF PROCESSING POWER TO MAKE COMPUTERS EASIER FOR RANK BEGINNERS THE SAME FOLKS WHO MAY NEVER GROW EXPERT ENOUGH TO HARNESS ALL THAT POWER IN THE FIRST PLACE SOME 42 OF ALL CONSUMERS STILL DON'T USE A PC AND MORE THAN HALF OF THESE NONUSERS SIMPLY AREN'T INTERESTED IN OWNING ONE AT HOME ACCORDING TO A NEW STUDY RELEASED HERE BY INTERNATIONAL BUSINESS MACHINES CORP IBM MANAGED TO FIND AN UPSIDE A MAJORITY WOULD BE MORE LIKELY TO BUY THE GEAR IF IT HAD EASYTOUSE FEATURES AND NATURAL COMPUTING SUCH AS SPEECH COMMANDS SIMPLE SETUP LOW ELECTRICITY USAGE AND LOW RADIATION EMISSIONS EVEN THOSE NEWFANGLED FEATURES HOWEVER MIGHT DO LITTLE TO REASSURE MORE THAN A QUARTER OF THE NONUSERS WHO TOLD THE SURVEY TAKERS THEY WORRY THAT ANY COMPUTER THEY WOULD BUY WOULD QUICKLY BECOME OBSOLETE COMDEX OFFERS GOOD REASON FOR THEIR FEAR THE COMPANIES HERE ROUTINELY DISPLAY THEIR LATEST PRODUCT EVEN AS THEY SHOW OFF A PROTOTYPE THAT WILL REPLACE IT IN SIX TO NINE MONTHS AND MEET PRIVATELY WITH CORPORATE CUSTOMERS IN BACKROOM SUITES TO BEGIN SKETCHING WHAT THE SUCCEEDING VERSION WILL LOOK LIKE A YEAR AFTER THAT THE TECHNOLOGY TRAFFIC JAM HERE MAKES IT ALL BUT IMPOSSIBLE TO TRACK DOWN MUCH OF ANYTHING IN THE CACOPHONY AND CLUTTER OF THE COMDEX SHOWROOM FLOOR THE EXHIBITORS ARE SPREAD ACROSS FIVE SEPARATE SITES AND 22 MILLION SQUARE FEET I'VE CARVED OUT FOUR HOURS TO ROAM THE FLOOR AND I KNOW I WON'T SEE 10 OF IT SAYS A RESIGNED BRUCE CLAFLIN PRESIDENT OF THE AMERICAS BUSINESS OF IBM PERSONAL COMPUTER CO EVEN CAREFUL ADVANCE PLANNING DOESN'T HELP PETER DOUMA A SOFTWARE ENGINEER IN A RESEARCH ARM OF SONY CORP SPENT MONDAY MORNING PORING OVER THE 704PAGE OFFICIAL GUIDE CROSSINDEXED BY COMPANY NAME BOOTH NUMBER CATEGORY OF TECHNOLOGY AND TYPE OF PRODUCT HE CIRCLED ABOUT 30 WIRELESS EXHIBITS HE HOPED TO VISIT BUT GAVE UP HIS ORDERLY APPROACH AFTER FAILING TO FIND MOST OF THEM WE HAVE NO IDEA HOW MANY WE SAW BECAUSE WE WERE JUST WANDERING HE SAYS IT'S CRAZY YOU SPEND MORE TIME LOOKING AT BOOTH NUMBERS THAN AT THE TECHNOLOGY THE COMPANIES WAGE A LOUD COMPETITION OF MICROPHONES AND CANNED PRESENTATIONS TO DRAW PASSERSBY BEFITTING THE TONE OF LAS VEGAS IT SEEMS THAT NO TECHNIQUE NO GIMMICK IS BEYOND THE PALE ONE AXIOM WHEN ALL ELSE FAILS TO ATTRACT ATTENTION YELL AT THE EXHIBIT FOR AMERICAN TELEPHONE & TELEGRAPH CO AND ITS NCR CORP COMPUTER UNIT A MAN AND WOMAN ENGAGE IN AN EARSPLITTING ARIA ABOUT HIGHTECH HARDWARE COMPLETE WITH MODEL NUMBERS THIRTYONE EIGHTEEEEEEE AND FORTYONE FIFTEEEEEEE ARE THE PRODUCTS WE CAN GLORIFY THE FEMALE HALF OF THE DUET SINGS OUT TAKING IT UP NOT ONE BUT TWO OCTAVES ON HER FINAL NOTE FOR THIS FEWER THAN A DOZEN PEOPLE ARE WATCHING THREE OR FOUR OF THEM ARE POLITE ENOUGH TO CLAP MOTOROLA INC FARES SOMEWHAT BETTER THE COMPANY HAS BROUGHT IN THE ACTOR WHO PLAYS THE PALE ALMOSTHUMAN ROBOT KNOWN AS LT COMMANDER DATA ON THE TV SHOW STAR TREK THE NEXT GENERATION WHILE ACTOR BRENT SPINER SANS PALE MAKEUP PATIENTLY SIGNS AUTOGRAPHS AT ONE PART OF THE EXHIBIT MORE THAN 100 PEOPLE AT A TIME WAIT IN A STRATEGICALLY PLACED LINE THAT PARADES THEM PAST A HUGE VIDEO SCREEN ON SCREEN THE EXPANSIVE FACE OF A COMPUTER USER ON TAPE ASKS QUESTIONS ABOUT THE NEW POWERPC CHIP ON STAGE A LIVE PITCHMAN PRETENDS TO HAVE A TWOWAY CONVERSATION WITH HIM AMID THE HOOPLA THERE ARE SERIOUS FIGHTS GOING ON ABOUT TECHNOLOGY AND SOMETIMES THEY GET NASTY AT THE MOTOROLA BOOTH ACCORDING TO MOTOROLA WITNESSES INTEL CORP EMPLOYEES SURROUNDED AND BLASTED MOTOROLA OFFICIALS OVER A DISPLAY THAT SHOWS A COMPUTER RUNNING ON THE POWERPC CHIPMADE BY MOTOROLA APPLE COMPUTER INC AND IBMRUNNING CIRCLES AROUND A MACHINE POWERED BY INTEL'S NEW PENTIUM CHIP THE INTEL EMPLOYEES CASTIGATED THE DEMONSTRATION AS UNFAIR IN THAT IT COMPARES TWO CHIPS OF DIFFERENT SPEEDS ACCORDING TO THE MOTOROLA WITNESSES INTEL OFFICIALS SAY THEY AREN'T AWARE OF ANY SUCH CONFRONTATIONS BUT ADD THAT THEY TOO QUESTION THE VALIDITY OF THE COMPARISONS AT THE IBM BOOTH THE SCREAMING COMEDIAN GALLAGER DRAWS BIG CROWDS AND LOTS OF YUCKS BY DELIVERING AN ANTICOMPUTER TIRADE WHILE WEARING A STRAITJACKET WHAT WAS SO WRONG WITH THE PAD AND PENCIL HE DEMANDS MY PAD NEVER ERASED ITSELF AND MY PENCIL WAS COMPATIBLE WITH ALL OTHER PADS THE SPIEL CULMINATES WITH THE COMIC SWINGING AN OVERSIZE SLEDGEHAMMER TO OBLITERATE A WATERMELON JUST IN TIME TO SPRAY THE PEOPLE SCRAMBLING TO THE STAGE TO GRAB UP DOLLAR BILLS FLOATING DOWN FROM OVERHEAD INSTEAD OF GIVING AWAY FREE CASH OTHER VENDORS LURE OBSERVERS WITH SWEEPSTAKES TO WIN A TRIP TO HAWAII A NOTEBOOK COMPUTER DOZENS OF SOFTWARE PROGRAMS AND THOUSANDS OF CAPS AND TSHIRTS A BASIC PREMISE OF COMDEX VETERANS EXPLAIN IS THAT PEOPLE WILL STAND IN LINE FOR ANYTHING A SECOND PREMISE IS THAT THEY WILL WATCH ANYTHING IF ONLY THEY CAN GET A SEAT ONE BOOTH OFFERS UP ARCANE INFORMATION BUT IS ESPECIALLY POPULAR BECAUSE PEOPLE GET TO LISTEN TO IT WHILE SITTING IN LAZBOY RECLINERS IN THE ANNEX DEVOTED TO MULTIMEDIA AN ARRAY OF SMALL CDROM COMPANIES SHOW DISKBASED INTERACTIVE PORNOGRAPHY ALBEIT EXPURGATED THOUGH THE UNEXPURGATED FARE IS XXXRATED WHAT THE EXHIBITORS ARE ALLOWED TO SHOW AT THE BOOTHS IS STRICTLY MTV IN CONTENT CENSORSHIP COMPLAINS LAWRENCE MILLER A PRODUCER FOR ONE OF THE EXHIBITING COMPANIES NEW MACHINE PUBLISHING ANOTHER TECHNOLOGICAL TIDBIT THE COMDEX KEYNOTE SPEECH BY APPLE'S CHIEF EXECUTIVE OFFICER MICHAEL SPINDLER WHICH WAS MADE ACROSS TOWN FROM THE MAIN CONVENTION SITE WAS SUPPOSED TO HAVE BEEN BROADCAST LIVE TO THE SITE BUT WASN'T BECAUSE OF TECHNICAL DIFFICULTIES SOME OF THE HOTTEST AND WEIRDEST ACTION HOWEVER TAKES PLACE FAR FROM THE SHOWROOM FLOOR AT ROARING PARTIES ONE HIGHLIGHT BILLIONAIRE BILL GATES CHAIRMAN OF MICROSOFT CORP GRACED A CHARITY CHILI COOKOFF PITTING DOZENS OF COMPANIES AGAINST ONE ANOTHER BY TAKING PART IN AN ARMADILLO RACE WITNESSES SAY MR GATES BEING A GOOD SPORT CRAWLED ACROSS THE STAGE ON HANDS AND KNEES AND BLEW ON THE BACK END OF AN ARMADILLO TO PERSUADE IT TO RUN HE SLIPPED ON DUNG IN THE PROCESS HIS ARMADILLO LOST JIM CARLTON CONTRIBUTED TO THIS ARTICLE 9311180065 931118 REPUBLIC RAISES BID TO BUY GREEN POINT SAVINGS BANK NEW YORK REPUBLIC NEW YORK CORP SWEETENED ITS BID TO BUY GREEN POINT SAVINGS BANK BY OFFERING DEPOSITORS 250 MILLION SIGNIFICANTLY MORE THAN ITS PREVIOUS BID EARLIER THIS MONTH REPUBLIC OFFERED GREEN POINT DEPOSITORS 100 MILLION THE EQUIVALENT OF A 2 INTEREST PAYMENT ON 56 BILLION IN DEPOSITS THE BOARD OF GREEN POINT REJECTED THE ORIGINAL OFFER AS A MUTUAL SAVINGS BANK GREEN POINT IS OWNED BY THE DEPOSITORS REPUBLIC'S UNSOLICITED BID FOR THE BANK AIMS TO HEAD OFF AN INITIAL PUBLIC OFFERING BY GREEN POINT WHICH IS BASED IN THE BOROUGH OF QUEENS REPUBLIC HAS SAID THAT THE TRUSTEES AND INSIDERS COULD REAP AS MUCH AS 200 MILLION IN FEES AND STOCK THROUGH THE IPO WE WANT TRUSTEES TO CONSIDER IT JEFFREY KEIL REPUBLIC'S PRESIDENT SAID OF THE INCREASED PAYMENT WE WANT THEM TO TAKE US SERIOUSLY LAST NIGHT GREEN POINT CHAIRMAN THOMAS JOHNSON SAID IN A STATEMENT THAT THE SWEETENED BID IS AN ILLUSORY PROPOSAL THERE IS NO PAYMENT THAT REPUBLIC CAN LEGALLY MAKE HE CALLED ON STATE BANKING REGULATORS TO TAKE ENFORCEMENT ACTION THE NEW YORK STATE BANKING DEPARTMENT HAD NO IMMEDIATE COMMENT 9311180064 931118 BUSINESS BRIEF CONSOLIDATED EDISON OF NEW YORK UTILITY PLANS REPAIR SERVICE FOR NATURAL GAS CUSTOMERS CONSOLIDATED EDISON OF NEW YORK INC ENTERING THE SERVICE CONTRACT BUSINESS SAID IT WILL BEGIN OFFERING REPAIR SERVICE TO NATURAL GAS SPACE AND WATER HEATING CUSTOMERS DEC 1 THE PLAN CALLED PLUS WILL PROVIDE PARTS REPLACEMENT SERVICE FOR NATURAL GAS HEATING EQUIPMENT AND HOT WATER HEATERS IN ONEFAMILY TO FOURFAMILY HOMES IN THE NEW YORKBASED UTILITY'S ENTIRE GAS SERVICE TERRITORY OF MANHATTAN THE BRONX MOST OF WESTCHESTER COUNTY AND PARTS OF QUEENS THE ANNUAL COST OF THE PROGRAM INCLUDING TAXES RANGES FROM 1520 TO 5862 FOR PARTS AND LABOR ANOTHER OPTION HAS NO FEE BUT CHARGES FOR EACH REPAIR CON ED SAID IT WOULD CONTINUE TO PROVIDE EMERGENCY SERVICE TO ITS CUSTOMERS AND TO RESPOND TO REQUESTS FOR SAFETY AND DIAGNOSTIC CHECKS OR FUEL AIR AND OTHER ADJUSTMENTS AT NO CHARGE 9311180063 931118 EPA TO WARN CALIFORNIA OF CLEANAIR LAW PENALTY WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY RAISING THE ANTE IN A TUGOFWAR WITH CALIFORNIA WILL INFORM STATE OFFICIALS THAT CALIFORNIA WOULD LOSE AS MUCH AS 600 MILLION IN FEDERAL HIGHWAY FUNDS IF IT DOESN'T COMPLY WITH A CLEANAIR LAW BY MARCH 15 THE MOVE RESULTS FROM CALIFORNIA'S FAILURE TO MEET A NOV 15 DEADLINE TO INFORM THE EPA HOW IT PLANS TO MEET A REQUIREMENT UNDER THE 1990 CLEAN AIR ACT THE REQUIREMENT CALLS ON 83 HEAVILY POLLUTED AREAS TO ESTABLISH A SYSTEM OF AUTO EMISSIONSCONTROL INSPECTION IN WHICH CARS ARE INSPECTED AT A SITE SEPARATE FROM WHERE NECESSARY REPAIRS ARE MADE CURRENTLY CALIFORNIA ALLOWS BOTH INSPECTIONS AND REPAIRS TO BE MADE IN SERVICE STATIONS IN SOME AREAS THE EPA AND CALIFORNIA STATE OFFICIALS HAVE BEEN WRANGLING OVER THE ISSUE FOR MONTHS AND THE STATE LEGISLATIVE SESSION ENDED WITHOUT HAVING ANY PROGRAM PASSED INTO LAW THE EPA'S INSPECTION AND MAINTENANCE PROGRAM IS AMONG THE LEASTPOPULAR ITEMS IN THE 1990 LAW BECAUSE IT COULD MAKE ANNUAL CAR INSPECTIONS UNWIELDY BUT ENVIRONMENTALISTS ARGUE THAT SEPARATING INSPECTION AND REPAIR IS CRUCIAL TO ENSURE THAT SHODDY WORK ISN'T APPROVED BY THE SAME PEOPLE WHO PERFORMED IT 9311180062 931118 AMERICAN AIR ATTENDANTS ATTEMPT TO REACH ACCORD FORT WORTH TEXAS TALKS TO AVERT A WALKOUT BY AMERICAN AIRLINES FLIGHT ATTENDANTS CONTINUED LAST NIGHT AS THE TWO SIDES SOUGHT TO REACH AGREEMENT ON A NEW CONTRACT BEFORE THE SCHEDULED STRIKE DEADLINE OF 6 AM CST TODAY THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS WHICH REPRESENTS 21000 WORKERS AT THE AMR CORP UNIT HAS SAID THAT EVEN IF THERE'S PROGRESS IN THE TALKS ITS MEMBERS WILL WALK OFF THE JOB THIS MORNING UNLESS THERE'S AN AGREEMENT AMERICAN SAYS IT PLANS TO OPERATE ALL FLIGHTS IN THE EVENT OF A STRIKE ALTHOUGH THE NUMBER OF PLANES THAT GET OFF THE GROUND WILL DEPEND ON HOW MANY FLIGHT ATTENDANTS CROSS PICKET LINES AND WHETHER THE AIRLINE HAS TRAINED ENOUGH SUBSTITUTE WORKERS AT THE SAME TIME OTHER CARRIERS SAID THEY WOULD ACCEPT SOME AMERICAN TICKETS IN THE EVENT OF A STRIKE THE INTERNATIONAL AIRLINE PASSENGERS ASSOCIATION THREW ITS SUPPORT BEHIND THE AIRLINE SAYING THAT AIRLINES MUST STREAMLINE TO MEET PASSENGER DEMAND FOR LOW FARES WHILE A STRIKE MAY CAUSE PASSENGERS INCONVENIENCE THE INDUSTRY GROUP SAID WE MUST ENDURE THESE SHORTTERM PROBLEMS TO HAVE AN AIRLINE SYSTEM IN THE LONGTERM THAT MEETS THE NEEDS OF OUR AIRLINE PASSENGER MEMBERS 9311180061 931118 BUSINESS BRIEF RODMAN & RENSHAW CAPITAL GROUP SECURITIES FIRM TO SELL STAKE TO ABACO BROKERAGE UNIT RODMAN & RENSHAW CAPITAL GROUP INC CHICAGO SAID IT AGREED DEFINITIVELY TO SELL A 51 STAKE IN THE SECURITIES CONCERN TO ABACO CASA DE BOLSA FOR 1050 A SHARE OR 236 MILLION THE BROKERAGE UNIT OF ABACO GRUPO FINANCIERO SA DE CV OF MONTERREY MEXICO MADE THE OFFER TO RODMAN THIS MONTH UNDER THE TERMS OF THE PACT ABACO WILL BEGIN A TENDER OFFER WITHIN FIVE BUSINESS DAYS BUT COMPLETION IS SUBJECT TO VARIOUS CONDITIONS INCLUDING A MINIMUM TENDER OF 51 OF THE STOCK RODMAN HAS ABOUT 44 MILLION SHARES OUTSTANDING IF LESS THAN 51 OF THE SHARES ARE TENDERED RODMAN SAID IT WILL SELL ABACO AS MANY AS 220000 SHARES AT THE SAME PRICE IF NECESSARY TO RESULT IN THE ACQUISITION OF THE 51 STAKE RODMAN SAID ITS BOARD HAS APPROVED THE TRANSACTION AFTER RECEIPT OF AN OPINION OF ROTHSCHILD HOLDINGS INC THAT THE PRICE IS FAIR TO ITS STOCKHOLDERS FROM A FINANCIAL POINT OF VIEW 9311180060 931118 PROPERTY LOSSES FROM FIRES ESTIMATED AT 950 MILLION LOS ANGELES WINDSWEPT BRUSH FIRES THAT RECENTLY ROARED THROUGH SOUTHERN CALIFORNIA CAUSED ABOUT 950 MILLION IN INSURED PROPERTY LOSSES THE LARGEST US CATASTROPHE SO FAR THIS YEAR ACCORDING TO A PRELIMINARY ESTIMATE THE DAMAGE CALCULATION IS FROM ALL THE WILD FIRES IN THE AREA FROM OCT 27 TO NOV 3 SAID THE PROPERTY CLAIMS SERVICES DIVISION OF THE AMERICAN INSURANCE ASSOCIATION A WASHINGTON INDUSTRY GROUP THE FIRES' DESTRUCTION WAS CONSIDERABLY GREATER THAN THE ESTIMATED 775 MILLION IN INSURED LOSSES STEMMING FROM THE 1992 LOS ANGELES RIOTS THAT CATASTROPHE MAINLY AFFECTED COMMERCIAL BUILDINGS WHILE ALMOST ALL THE RECENT LOSSES WERE HOMES AND PERSONAL PROPERTY IT APPEARS THAT MOST OF THE HOMES THAT BURNED WERE ADEQUATELY INSURED AN INSURANCE INDUSTRY SPOKESWOMAN SAID TOTAL DAMAGE FROM THE FIRES WAS ABOUT 1 BILLION ACCORDING TO AN ESTIMATE FROM CALIFORNIA'S OFFICE OF EMERGENCY SERVICES AND THE FEDERAL EMERGENCY MANAGEMENT AGENCY THE FIRES COLLECTIVELY DESTROYED 1241 STRUCTURES AND BURNED 197225 ACRES THE AGENCIES SAID 9311180059 931118 CREDIT RATINGS CINCINNATI BELL INC CINCINNATI TWO RATINGS AGENCIES PLACED THE DEBT RATINGS OF THIS TELECOMMUNICATIONS SERVICES CONCERN UNDER REVIEW FOR POSSIBLE DOWNGRADE CITING THE COMPANY'S PLAN TO BUY A TELEMARKETING BUSINESS AS WELL AS CONTINUING WEAKNESS IN CINCINNATI BELL'S UNREGULATED UNITS MOODY'S INVESTORS SERVICE INC SAID 225 MILLION IN DEBT WAS AFFECTED BY ITS REVIEW MOODY'S SAID OPERATING MARGINS AT CINCINNATI BELL'S COMPETITIVE SUBSIDIARIES ARE WEAKER THAN AT THE MAIN TELEPHONE OPERATIONS SEPARATELY STANDARD & POOR'S CORP CITED CINCINNATI BELL'S PLAN TO ACQUIRE FIRST DATA CORP'S TELEMARKETING UNIT WATS MARKETING CINCINNATI BELL HAD SAID IT WOULD COMBINE WATS MARKETING WITH ITS MARKETING SERVICES UNIT MATRIXX MARKETING INC CINCINNATI BELL'S SOFTWARE BUSINESS AND MATRIXX MARKETING COMPRISE ABOUT 80 OF THE COMPANY'S DIVERSIFIED SERVICES REVENUE ACCORDING TO S&P 9311180058 931118 BUSINESS BRIEF DEPRENYL RESEARCH LTD GOLDFARB ENDS NEGOTIATIONS TO BUY STAKE OF ALMOST 20 GOLDFARB CORP SAID IT HAS WITHDRAWN FROM DISCUSSIONS THAT WOULD HAVE LED TO ITS ACQUISITION OF A 1965 STAKE IN DEPRENYL RESEARCH LTD A TORONTOBASED PHARMACEUTICAL CONCERN AS REPORTED GOLDFARB A TORONTO MARKETING ORGANIZATION AND NOVOPHARM LTD A CLOSELY HELD GENERIC DRUG MANUFACTURING ENTITY LAST MONTH PROPOSED TO EACH ACQUIRE A SIMILIAR STAKE IN DEPRENYL IN THE FORM OF SHARES AND WARRANTS IN RETURN FOR TOTAL PROCEEDS OF ABOUT 45 MILLION CANADIAN DOLLARS US343 MILLION DEPRENYL SAID DISCUSSIONS WITH NOVOPHARM ARE CONTINUING A GOLDFARB OFFICIAL SAID THAT THE FINANCIAL AND OTHER COMMITMENTS EXPECTED BY DEPRENYL RESEARCH LIMITED WERE SUBSTANTIALLY GREATER THAN EXPECTED AND MORE THAN GOLDFARB WAS PREPARED TO CONSIDER DEPRENYL OFFICIALS COULDN'T BE REACHED FOR COMMENT 9311180057 931118 BUSINESS BRIEF TELESCAN INC ALLEN EXERCISES WARRANTS TO BRING HIS STAKE TO 146 IN NASDAQ STOCK MARKET TRADING TELESCAN'S STOCK SURGED 16 OR 1125 TO 825 A SHARE DAVID L BROWN CHAIRMAN AND CHIEF EXECUTIVE OF TELESCAN SAID THE COMPANY HAS AN EXCELLENT RELATIONSHIP WITH MR ALLEN AND VULCAN WE LOOK FORWARD TO THEIR CONTINUED INVOLVEMENT IN THE COMPANY HE SAID 9311180056 931118 CORRECTION A STORY ON YESTERDAY'S EDITORIAL PAGE HIGHPRESSURE TACTICS RAISE DOCTOR'S PRESSURE MISNAMED A HEART DRUG THAT DRUG IS DIGOXIN 9311180055 931118 SENATE CLEARS 261 BILLION FOR DEFENSE IN FISCAL '94 WASHINGTON THE SENATE GAVE FINAL APPROVAL TO THE 261 BILLION FISCAL 1994 DEFENSE AUTHORIZATION BILL PASSED BY THE HOUSE EARLIER THIS WEEK SENATE APPROVAL CAME IN A 7722 VOTE BUT SEVERAL MEMBERS EXPRESSED CONCERN THAT THE MILITARY MAY BE SHRINKING TOO FAST ESPECIALLY WITH THE US STILL PARTICIPATING IN A UNITED NATIONS MISSION IN SOMALIA AND CONSIDERING INVOLVEMENT IN ONE IN BOSNIA THE BILL IS MOST NOTABLE FOR ACCELERATING THE MILITARY'S MOVE INTO THE POSTCOLD WAR WORLD IT PROVIDES 979 MILLION IN AID TO THE FORMER SOVIET REPUBLICS AND CALLS FOR MORE MONEY TO BE SPENT ON ENVIRONMENTAL CLEANUP WORK THAN ON ACQUIRING NEW WEAPONS FOR THE ARMY IT CODIFIES A STRICT VERSION OF THE ADMINISTRATION'S DON'T ASK DON'T TELL COMPROMISE ALLOWING GAYS IN THE MILITARY IF THEY DON'T REVEAL THEIR SEXUAL ORIENTATION IT ALSO LIFTS THE BAN ON WOMEN SERVING ABOARD WARSHIPS AND PROVIDES 20 MILLION FOR SPENDING ON WOMEN'S HEALTH ISSUES THE BILL PROVIDES FUNDS FOR THE PENTAGON'S PLAN TO FIX THE TROUBLED MCDONNELL DOUGLAS CORP C17 MILITARY CARGO JET PROGRAM IT GIVES THE PENTAGON ABOUT 2 BILLION TO PURCHASE AS MANY AS SIX C17S IN FISCAL 1994 IF THE COMPANY IMPROVES ITS PERFORMANCE BUT AS FEW AS FOUR IF QUALITY PROBLEMS CONTINUE TO PLAGUE PRODUCTION 9311180054 931118 BUSINESS BRIEF AMETEK INC DIVIDEND IS CUT WRITEDOWN TO BE TAKEN IN 4TH QUARTER AMETEK INC PAOLI PA SAID IT WILL SLASH ITS DIVIDEND 65 TAKE A FOURTHQUARTER 40 MILLION CHARGE AND REPURCHASE AS MUCH AS 150 MILLION OF ITS STOCK THE MAKER OF PRECISION INSTRUMENTS ELECTRIC MOTORS AND ENGINEERED MATERIALS SAID IT DECIDED RELUCTANTLY TO MAKE THE CUT TO BRING ITS PAYOUT MORE IN LINE WITH THAT OF SIMILAR COMPANIES THE COMPANY DECLARED A QUARTERLY DIVIDEND OF SIX CENTS A SHARE PAYABLE DEC 24 TO SHAREHOLDERS OF RECORD DEC 10 IT PREVIOUSLY PAID 17 CENTS QUARTERLY WITH 44 MILLION SHARES OUTSTANDING THE DIVIDEND CUT WILL SAVE ABOUT 19 MILLION A YEAR AND BE USED TO INCREASE CASH FLOW REDUCE BANK DEBT AND FUND CAPITAL PROJECTS WALTER E BLANKLEY CHAIRMAN AND CHIEF EXECUTIVE SAID THE 40 MILLION CHARGE REFLECTS SEVERAL STEPS INCLUDING ACTIONS RELATED TO OUR INABILITY TO REACH A NEW LABOR AGREEMENT AT A SELLERSVILLE PA PLANT A SPOKESMAN SAID HE COULDN'T RULE OUT LAYOFFS THE CHARGE ALSO WILL COVER THE WRITEDOWN OF ASSETS AND REFINANCING OF DEBT AMONG OTHER ITEMS THE STOCK REPURCHASE WOULD REPRESENT ABOUT 25 OF THE COMPANY'S COMMON SHARES THROUGH OPENMARKET PURCHASES OR A DUTCH AUCTION TENDER OFFER 9311180053 931118 BUSINESS BRIEF ACC CORP OFFERING LOCAL PHONE SERVICE COULD INCREASE REVENUE 7 ACC CORP IN A MOVE THAT COULD INCREASE ITS REVENUE AT LEAST 7 A YEAR SAID IT PLANS TO OFFER LOCAL PHONE SERVICE TO SMALL BUSINESSES AND RESIDENTS IN UPSTATE NEW YORK STARTING NEXT JUNE THE MOVE IS SUBJECT TO REGULATORY APPROVAL THE ROCHESTER NY LONG DISTANCE RESELLER CURRENTLY OFFERS SOME LOCAL PHONE SERVICE BUT IT MUST USE OTHER CARRIERS' EXCHANGES BECAUSE OF RECENT RULINGS MADE BY THE NEW YORK STATE PUBLIC SERVICE COMMISSION ACC MAY NOW SET UP ITS OWN EXCHANGE THAT WOULD PUT IT IN DIRECT COMPETITION WITH NYNEX CORP AND ROCHESTER TELEPHONE CORP ARUNAS CHESONIS PRESIDENT OF ACC'S ACC LONG DISTANCE UNIT SAID THE COMPANY HAS 1 TO 4 OF THE LONG DISTANCE MARKET IN BUFFALO ROCHESTER SYRACUSE ALBANY AND BINGHAMTON AND HOPES TO WIN THAT MUCH OF THE LOCAL PHONE SERVICE MARKET AT 1 OF THE MARKET REVENUE WOULD INCREASE ABOUT 6 MILLION AT 4 30 MILLION LAST YEAR ACC'S REVENUE WAS 817 MILLION 9311180052 931118 BUSINESS BRIEF BELDEN & BLAKE CORP COMPANY SETS PLACEMENT OF 35 MILLION OF 7 NOTES BELDEN & BLAKE CORP SAID IT ARRANGED THE PRIVATE PLACEMENT OF 35 MILLION OF SENIOR NOTES WITH A GROUP OF FIVE INSURANCE COMPANIES THE NORTH CANTON OHIO OIL AND GAS CONCERN SAID 20 MILLION OF THE NOTES WERE SOLD YESTERDAY THE REST WILL BE SOLD DEC 31 THE NOTES PAY 7 INTEREST AND MATURE IN 2005 THE COMPANY SAID MCDONALD & CO SECURITIES INC CLEVELAND SERVED AS FINANCIAL ADVISER AND PLACEMENT AGENT BELDEN & BLAKE SAID A PORTION OF THE PROCEEDS WILL BE USED TO PAY OFF THE COMPANY'S BANK DEBT WITH 21 MILLION IN REMAINING PROCEEDS TO BE USED TO FINANCE FUTURE ACQUISITIONS SEPARATELY THE COMPANY SAID IT OBTAINED A NEW REVOLVING CREDIT FACILITY FROM BANK ONE TEXAS A UNIT OF BANC ONE CORP COLUMBUS OHIO AND NBD BANK A UNIT OF NBD BANCORP DETROIT THAT PROVIDES IT WITH AN ADDITIONAL 25 MILLION IN FUTURE BORROWING CAPABILITY 9311180051 931118 BUSINESS BRIEF SIEMENS AG OSRAMSYLVANIA UNIT AGREES TO ALTER LIGHTBULB CLAIMS OSRAMSYLVANIA REACHED AN AGREEMENT WITH MORE THAN 20 STATES TO SUBSTANTIALLY CHANGE PACKAGE CLAIMS AND OTHER ADVERTISING FOR ITS ENERGY SAVER LIGHT BULBS IN ADDITION SYLVANIA A LIGHTBULB MAKING UNIT OF SIEMENS AG BASED IN DANVERS MASS AGREED TO PAY A TOTAL OF 135000 IN COSTS TO NEW YORK AND EIGHT OTHER STATES AS PART OF THE SETTLEMENT THE OFFICIALS SAID SYLVANIA FALSELY CREATED THE IMPRESSION IN ITS ADVERTISING THAT ENERGY SAVER INCANDESCENT LIGHT BULBS WERE A TECHNOLOGICAL BREAKTHROUGH THAT WOULD PROVIDE ILLUMINATION EQUAL TO THAT OF HIGHERWATTAGE BULBS AND WOULD RESULT IN SIGNIFICANT SAVINGS IN ENERGY COSTS AND CONSERVATION OF NATURAL RESOURCES THE AGREEMENTS PROHIBIT SYLVANIA FROM MAKING ANY CLAIMS IN THE ADVERTISING AND MARKETING OF ITS LIGHT BULBS ABOUT ENERGY SAVINGS ENVIRONMENTAL BENEFITS OR LOWERED ENERGY COSTS IN THE ABSENCE OF RELIABLE SCIENTIFIC EVIDENCE THAT CAN SUBSTANTIATE THESE CLAIMS 9311180050 931118 LOUISIANA RETIREMENT PLAN SUES BROKERDEALER MMAR BATON ROUGE LA A STATE RETIREMENT PLAN SUED MMAR GROUP INC AND THREE EMPLOYEES ALLEGING THAT THE HOUSTONBASED BROKERDEALER CHARGED THE PENSION FUND EXCESSIVE COMMISSIONS THE LAWSUIT WAS FILED BY THE LOUISIANA STATE EMPLOYEES' RETIREMENT SYSTEM IN FEDERAL COURT IN BATON ROUGE THE FUND BOUGHT 25 BILLION OF MORTGAGEBACKED SECURITIES BETWEEN MAY 1990 AND JANUARY OF THIS YEAR BASED ON RECOMMENDATIONS FROM MMAR SAYS THE SUIT WHICH CLAIMS A BREACH OF FIDUCIARY OBLIGATION I HAVE SEEN A COPY OF THE LAWSUIT AND THE RESPONSE WILL BE FILED IN 15 DAYS SAID CORY J MINER A MMAR FOUNDER THE PURCHASES GENERATED UNDISCLOSED PROFIT TO MMAR OF 285 MILLION THE LAWSUIT ALLEGES A SUM THAT IT SAYS REPRESENTS 20 OF MMAR'S INCOME IN THE PERIOD THE PENSION FUND SEEKS RESTITUTION AND DAMAGES WHICH WEREN'T SPECIFIED MMAR WAS THE SUBJECT LAST MONTH OF A WALL STREET JOURNAL ARTICLE THE SUIT MAINTAINS THE PROFIT WAS EXCESSIVE BECAUSE MMAR DIDN'T HOLD AN INVENTORY OF THE SECURITIES WHICH ARE VOLATILE AND SO ALLEGEDLY WASN'T AT RISK RATHER IT BOUGHT THEM THE DAY THEY WERE SOLD TO THE FUND THE SUIT ALLEGES 9311180049 931118 BUSINESS BRIEF PILGRIM'S PRIDE CORP COMPANY POSTS RECORD NET REVERSES ITS YEAREND LOSS PILGRIM'S PRIDE CORP CITED ITS MOVE INTO MEXICO ALONG WITH PROGRAMS TO BOOST THE EFFICIENCY OF CHICKENRAISING FOR ITS RECORD NET INCOME OF 21 MILLION OR 76 CENTS A SHARE FOR ITS YEAR ENDED OCT 2 THE LATEST RESULTS COMPARE WITH A NET LOSS OF 297 MILLION OR 124 A SHARE A YEAR EARLIER AND INCLUDE A 12 MILLION OR FOURCENTASHARE CHARGE CONNECTED TO TAXRATE INCREASES THE COMPANY SAID SALES FOR THE 53WEEK FISCAL YEAR ROSE 86 TO 8878 MILLION FROM 8174 MILLION FOR THE PREVIOUS 52WEEK YEAR CLIFF BUTLER CHIEF FINANCIAL OFFICER SAID THE POULTRY COMPANY IN PITTSBURG TEXAS SAW ITS STRONGEST GAINS IN MEXICO WHICH ACCOUNTED FOR 21 OF OVERALL SALES HE SAID EFFORTS TO SELL MORE HIGHERMARGIN FURTHERPROCESSED CHICKEN PRODUCTS HELPED INCREASE SALES IN BOTH THIS COUNTRY AND MEXICO PILGRIM'S SHARES CLOSED AT 7 A SHARE UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9311180048 931118 THE HOUSE PASSES NAFTA BORROWING LIMIT PROPOSED FOR HEALTHCARE ALLIANCES WASHINGTON THE CLINTON ADMINISTRATION PROPOSED TO CAP AT 35 BILLION THE OVERALL AMOUNT REGIONAL HEALTHCARE ALLIANCES COULD BORROW FROM THE FEDERAL GOVERNMENT AT ANY ONE TIME PRESIDENT CLINTON'S HEALTHCARE PLAN WOULD CREATE 50 OR MORE OF THE ALLIANCES TO NEGOTIATE HEALTH COVERAGE FROM INSURERS THEY WOULD BE AUTHORIZED TO BORROW FROM THE TREASURY VIA THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO COVER CASHFLOW SHORTAGES RESULTING FROM MISCALCULATIONS AND OTHER PROBLEMS THE ALLIANCES' ANNUAL CASH FLOW IS PROJECTED TO BE AT LEAST 300 BILLION THE UNLIMITED BORROWING AUTHORITY PROMPTED CONCERN ON CAPITOL HILL REP PHILIP CRANE R ILL FOR INSTANCE WARNED OF A POTENTIALLY AWESOME BORROWING PROGRAM TO COVER SHORTFALLS IN RESPONSE TREASURY SECRETARY LLOYD BENTSEN TOLD THE HOUSE WAYS AND MEANS COMMITTEE THAT ALLIANCES' BORROWING AUTHORITY WOULD BE CAPPED AT 35 BILLION A TREASURY SPOKESMAN CONFIRMED THAT THIS WAS THE FIRST PUBLIC MENTION OF SUCH A CAP THAT IS A NEW NUMBER HE SAID THE CAP WOULD LIMIT THE AMOUNT OF FEDERAL LOANS TO HEALTH CARE ALLIANCES THAT COULD BE OUTSTANDING AT ANY ONE TIME FEDERAL LOANS ARE TO BE REPAID WITHIN TWO YEARS 9311180047 931118 BUSINESS BRIEF MAIL BOXES ETC FRANCHISER SAYS IT FACES FTC REVIEW OF ITS PRACTICES MAIL BOXES ETC SAID THE FEDERAL TRADE COMMISSION HAS INFORMED IT THAT THE AGENCY IS CONDUCTING A REVIEW OF THE SAN DIEGO COMPANY'S FRANCHISING PRACTICES THE COMPANY SAID IT BELIEVES THE REVIEW RESULTED FROM HEIGHTENED SCRUTINY OF FTC ENFORCEMENT PRACTICES AND RECENT CONGRESSIONAL HEARINGS ON PROPOSED FRANCHISE LEGISLATION MAIL BOXES SAID IT DIDN'T KNOW IF THE INQUIRY WAS PROMPTED BY A LAWSUIT FILED AGAINST IT LAST MONTH BY A SMALL GROUP OF FRANCHISEES THE SUIT ACCUSED MAIL BOXES OF DECEPTIVE CLAIMS TO SELL FRANCHISES MAIL BOXES A FRANCHISER OF POSTAL BUSINESS AND COMMUNICATIONS SERVICES BELIEVES IT IS WITHOUT MERIT MAIL BOXES SAID IT WILL COOPERATE WITH THE FTC AND IS CONFIDENT THE REVIEW WILL SHOW THE COMPANY IS IN COMPLIANCE WITH FTC REQUIREMENTS MAIL BOXES ALSO SAID NET INCOME IN THE SECOND QUARTER ENDED OCT 31 ROSE 19 TO 18 MILLION OR 15 CENTS A SHARE FROM 15 MILLION OR 13 CENTS A SHARE A YEAR EARLIER REVENUE WAS 12 MILLION UP 15 FROM 105 MILLION A YEAR AGO 9311180046 931118 COURT TEMPORARILY BARS STATE'S TELEMARKETING BAN NEWARK NJ A US DISTRICT COURT JUDGE HERE GRANTED A PRELIMINARY INJUNCTION SOUGHT BY SEVERAL TELEMARKETERS AND A TRADE ASSOCIATION THAT WOULD TEMPORARILY BAR NEW JERSEY FROM ENFORCING A LAW THAT BANS AUTOMATED TELEMARKETING CALLS FOR COMMERCIAL PURPOSES THE LAW WHICH TOOK EFFECT LAST SATURDAY PROHIBITS BUSINESSES FROM MARKETING THEIR PRODUCTS IN THE STATE USING AUTOMATED DIALING ANNOUNCEMENT DEVICES UNLESS THEY HAVE PERMISSION FROM THE RECEIVER OF THE CALL TO PLAY THE RECORDED SALES PITCH THE INJUNCTION WILL REMAIN IN EFFECT PENDING A HEARING ON A CASE ALLEGING THE LAW VIOLATES THE TELEMARKETERS' RIGHTS OF FREE SPEECH AMONG OTHER CLAIMS US DISTRICT JUDGE HAROLD A ACKERMAN SAID THE STATUTE DOESN'T MEET THE STATE'S CLAIM TO PROTECT RESIDENTIAL TRANQUILITY SAID MICHAEL LAMPERT AN ATTORNEY FOR THE PLAINTIFFS THE STATE LAW IS BEING CHALLENGED BY TWO PEOPLE WHO SELL CEMETERY PLOTS USING AUTOMATED TELEMARKETING AS WELL AS THE NATIONAL ASSOCIATION OF TELECOMPUTER OPERATORS A TRADE GROUP IN OREGON 9311180045 931118 BUSINESS BRIEF RAYTHEON CO OPERATING ASSETS OF UNIT OF ENSERCH WILL BE BOUGHT RAYTHEON CO LEXINGTON MASS AGREED TO ACQUIRE THE PRINCIPAL OPERATING ASSETS OF EBASCO SERVICES INC A UNIT OF ENSERCH CORP FOR 210 MILLION THE MOVE WHICH DEEPENS RAYTHEON'S INVESTMENT IN THE CONTRUCTION AND ENGINEERING BUSINESS IS THE COMPANY'S LATEST EFFORT TO DECREASE ITS EXPOSURE TO DEFENSE CONTRACTS AS A SOURCE OF OPERATING PROFITS UNDER THE AGREEMENT RAYTHEON ENGINEERS & CONSTRUCTORS WILL ACQUIRE THE OPERATIONS OF EBASCO WHICH BUILDS POWER PLANTS ROADS AND OTHER INFRASTRUCTURE EBASCO BASED IN NEW YORK HAS ABOUT 1 BILLION IN REVENUE AND EMPLOYS 8400 INCLUDING 3700 CONSTRUCTION WORKERS EBASCO SUBCONTRACTS SOME OF ITS WORK RAYTHEON ENGINEERS & CONSTRUCTORS HAS SALES OF ABOUT 17 BILLION AND 20000 EMPLOYEES WHICH INCLUDES 8000 CONSTRUCTION WORKERS FOR 1992 EBASCO HAD OPERATING PROFIT OF 32 MILLION ENSERCH SAID ENSERCH BASED IN DALLAS SAID THAT UNDER THE AGREEMENT IT WILL RETAIN THE BULK OF EBASCO'S ACCOUNTS RECEIVABLE VALUED AT 135 MILLION ENSERCH SAID IT ALSO WILL RETAIN AND OPERATE EBASCO'S ENVIRONMENTAL DIVISION WHICH IT VALUES AT 29 MILLION 9311180044 931118 INTERNATIONAL BRIEF CASIO COMPUTER CO JAPANESE COMPANY REGISTERS 67 DROP IN PRETAX PROFIT CASIO COMPUTER CO A JAPANESE MAKER OF DIGITAL WATCHES AND DESKTOP COMPUTERS REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT PLUNGED 67 IN THE FIRST HALF ENDED SEPT 30 FROM THE YEAR BEFORE THE COMPANY CITED WEAK DEMAND ABROAD AND THE SHARP APPRECIATION OF THE YEN UNCONSOLIDATED PRETAX PROFIT FELL TO 282 BILLION YEN 264 MILLION FROM 858 BILLION YEN ALTHOUGH CASIO SAID ITS UNCONSOLIDATED RESULTS FOR THE YEAR THROUGH MARCH 31 WILL CONTINUE TO SHOW DECLINES IN PROFIT IT PREDICTED THAT ITS SUCCESS IN SHIFTING PRODUCTION OVERSEAS TO COPE WITH THE YEN'S STRENGTH WILL MAKE THE YEARONYEAR DROP FOR THE FULL YEAR MUCH NARROWER THAN THE FIRSTHALF DECLINE SALES FELL 73 TO 15853 BILLION YEN FROM 17103 BILLION 9311180043 931118 BUSINESS BRIEF ELSINORE CORP BACK TAXES INTEREST TO TOTAL ABOUT 5 MILLION FIRM SAYS ELSINORE CORP LAS VEGAS SAID IT EXPECTS TO PAY ABOUT 5 MILLION IN ESTIMATED BACK TAXES AND INTEREST BASED ON AN INTERNAL REVENUE SERVICE AUDIT OF ITS FISCAL YEARS 1980 THROUGH 1983 THE PAYMENT WILL ALSO TRIGGER RESTATEMENT OF FINANCIAL RESULTS FOR THE YEARS 1989 THROUGH 1992 THE HOTEL AND CASINO COMPANY SAID RESULTS FOR THIS YEAR'S THIRD QUARTER WERE REVISED TO A LOSS OF 12 MILLION OR 10 CENTS A SHARE EARLIER THIS MONTH THE COMPANY REPORTED THIRDQUARTER NET INCOME OF 586000 OR FIVE CENTS A SHARE THE PROPOSED AUDIT ADJUSTMENTS ARE RELATED TO SUCH ISSUES AS THE DEPRECIABLE LIVES OF CERTAIN ASSETS THE DEDUCTIBILITY OF PREOPENING COSTS FOR A HOTEL AND CASINO PROPERTY AND USE OF CERTAIN INVESTMENT TAX CREDITS THE COMPANY SAID THE IRS EXAMINATION BEGAN IN AUGUST 1984 THE 5 MILLION LIABILITY COMES ON TOP OF 35 MILLION DEPOSITED BY THE COMPANY WITH THE AGENCY IN MARCH 1991 SO THAT INTEREST WOULD CEASE TO ACCRUE 9311180042 931118 INTERNATIONAL BRIEF NOMURA SECURITIES CO COMPANY POSTS PRETAX PROFIT AGAINST YEAREARLIER LOSS NOMURA SECURITIES CO JAPAN'S LARGEST BROKERAGE FIRM POSTED A CONSOLIDATED PRETAX PROFIT OF 5553 BILLION YEN 520 MILLION FOR THE FIRST HALF ENDED SEPT 30 A JUMP IN COMMISSION AND UNDERWRITING REVENUE HELPED THE FIRM REBOUND FROM A 1036 BILLIONYEN LOSS THE YEAR BEFORE WITH JAPAN'S STOCK MARKET ACTIVITY PICKING UP BRIEFLY DURING THE FIRST MONTHS OF THE FIRST HALF AMID SIGNS THAT JAPAN'S ECONOMY WAS BEGINNING TO REBOUND BOTH COMMISSION AND UNDERWRITING REVENUE SWELLED ALTHOUGH NEW STOCK OFFERINGS BY LISTED COMPANIES REMAINED FEW AND FAR BETWEEN AN INCREASE IN PRIMARY MARKET STOCK OFFERINGS AND CONTINUED STRONG BOND ISSUANCE HELPED NOMURA'S UNDERWRITING AND DISTRIBUTION REVENUE ADVANCE 55 TO 4137 BILLION YEN BUT NET GAINS ON TRADING CAME TO ONLY 3512 BILLION YEN DOWN 58 ON THE YEAR REVENUE FROM INTEREST AND DIVIDENDS ROSE 48 TO 12996 BILLION YEN 9311180041 931118 BUSINESS BRIEF AOI COAL CO COMPANY'S ADOBE UNIT FILES FOR CHAPTER 11 PROTECTION AOI COAL CO SAID ITS ADOBE CO DELAWARE UNIT WHICH OWNS MINING OPERATIONS FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN US BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA AOI SAID THE UNIT SUSPENDED MINING OPERATIONS ON MARCH 9 AND WON'T BE ABLE TO MEET ITS FINANCIAL OBLIGATIONS UNTIL OPERATIONS RESUME HOWEVER THOMAS P BAUMGARTH PRESIDENT AND CHIEF OPERATING OFFICER SAID AOI DOES NOT KNOW WHEN OR IF OPERATIONS WILL RESUME ADOBE'S OPERATING UNITS INCLUDE ADOBE MINING CO DARMAC ASSOCIATES CORP AND GRAND VALLEY COAL CO AOI WHICH IS BASED IN KITTANING PA MINES PROCESSES AND MARKETS BITUMINOUS COAL BY STRIP MINING AND UNDERGROUND MINING METHODS THE ANNOUNCEMENT CAME AFTER THE MARKET HAD CLOSED IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE AOI SHARES CLOSED UNCHANGED AT 1067 CENTS 9311180040 931118 INTERNATIONAL BRIEF ROYAL AHOLD NV EARNINGS FOR 1993 FULL YEAR IN US EXPECTED TO BE FLAT ROYAL AHOLD NV'S US EARNINGS WILL BE FLAT IN 1993 DUE TO RESTRUCTURING COSTS AND FIERCE COMPETITION BUT SHOULD RECOVER TO POST MORE THAN 10 GROWTH IN 1994 THE BIG NETHERLANDS SUPERMARKET OPERATOR SAID NET INCOME FROM AHOLD'S FIVE US SUPERMARKET CHAINS WERE ESSENTIALLY FLAT FOR THE SECOND QUARTER OFFICIALS SAID ALTHOUGH THEY DIDN'T OFFER SPECIFIC FIGURES THEY SAID PROFIT FROM OPERATIONS SLID 7 TO 389 MILLION COMPARED WITH 418 MILLION THE FOR THE YEAREARLIER PERIOD THE COMPANY EXPECTS TO REPORT THAT THE THIRD QUARTER WAS SIMILARLY LISTLESS AS TWO AHOLD RETAIL CHAINS FINAST AND EDWARDS FOOD STORES BATTLE FIERCE COMPETITION AND RESTRUCTURING COSTS EARNINGS FOR THE PARENT COMPANY WHICH CONTROLS ABOUT 37 OF THE DUTCH FOOD RETAIL MARKET AND HAS A SIGNIFICANT MARKET SHARE IN EUROPE WERE UP 11 IN ITS SECOND QUARTER TO 762 MILLION FROM 684 MILLION IN THE YEAREARLIER PERIOD 9311180039 931118 TECHNOLOGY BRIEF GENENTECH INC FDA APPROVES SALE OF DRUG TO STIMULATE CHILD GROWTH GENENTECH INC SAID THE FOOD AND DRUG ADMINISTRATION APPROVED THE SALE OF THE DRUG NUTROPIN FOR CHILDREN WHOSE GROWTH FALTERS DUE TO CHRONIC KIDNEY DISEASE THE FDA'S CLEARANCE GIVES THE BIOTECHNOLOGY COMPANY THE GREEN LIGHT TO BEGIN MARKETING NUTROPIN WHICH IS A NEW VERSION OF THE COMPANY'S GENETICALLY ENGINEERED HUMAN GROWTH HORMONE GENENTECH'S EARLIER VERSION OF THE DRUG PROTROPIN ALREADY IS MARKETED FOR THE TREATMENT OF DWARFISM WHICH RESULTS WHEN THE PITUITARY GLAND FAILS TO PRODUCE ENOUGH NATURAL GROWTH HORMONE CURRENTLY THE SOUTH SAN FRANCISCO CALIF COMPANY ESTIMATES THAT ABOUT 3000 CHILDREN IN THE US ARE ON KIDNEY DIALYSIS AWAITING TRANSPLANT ORGANS THE CONDITION KNOWN AS CHRONIC RENAL INSUFFICIENCY PREVENTS YOUNGSTERS FROM REACHING THEIR NORMAL ADULT HEIGHT HOWEVER GENENTECH PRESENTED DATA TO AN FDA PANEL SHOWING THAT NORMAL GROWTH RATES WERE ACHIEVED BY 65 OF SUCH CHILDREN WHEN TREATED WITH NUTROPIN FOR TWO YEARS AND 91 OF CHILDREN TREATED FOR THREE YEARS GENENTECH SAID IT EXPECTS TO MAKE NUTROPIN AVAILABLE BY THE END OF THE YEAR 9311180038 931118 BUSINESS BRIEF HORNBECK OFFSHORE SERVICES INC FOURTHQUARTER FORECASTS PROFIT WILL AT LEAST DOUBLE HORNBECK OFFSHORE SERVICES INC IS COMFORTABLE WITH ANALYST FORECASTS THAT FOURTHQUARTER NET INCOME WILL MORE THAN DOUBLE TO A RANGE OF 26 CENTS TO 30 CENTS A FULLYDILUTED SHARE SAID LARRY HORNBECK CHAIRMAN AND CHIEF EXECUTIVE MR HORNBECK SAID THAT NET COULD FALL INTO THE LOWER END OF THE RANGE BECAUSE OF A CHARGE OF FOUR CENTS A SHARE THE GALVESTON TEXAS COMPANY EXPECTS TO TAKE FOR THE UNSUCCESSFUL SALVAGE OF A VESSEL LOST IN A STORM IN THE 1992 FOURTHQUARTER HORNBECK PRIMARILY A GULF OF MEXICO OPERATOR OF SUPPLY BOATS THAT SERVICE OIL RIGS EARNED 12 MILLION OR 12 CENTS A FULLYDILUTED SHARE ON REVENUE OF 74 MILLION A PICKUP IN DRILLING THIS YEAR FOR NATURAL GAS RESERVES IN THE GULF OF MEXICO AND INCREASED DRILLING FOR OIL IN PARTS OF THE GULF HAVE BOOSTED INDUSTRY UTILIZATION RATES AS WELL AS THE RATES COMPANIES CHARGE FOR USE OF THEIR VESSELS 9311180037 931118 LETTERS TO THE EDITOR NOW THE NRA TELLS US WATCH OUT FOR NAZIS CONCERNING YOUR OCT 26 PAGE ONE ARTICLE ON NEAL KNOX AND THE NRA ACCORDING TO NRA OFFICIALS MR KNOX IS THE STRONGEST DEFENDER OF THE SECOND AMENDMENT MR KNOX CITING THE SECOND AMENDMENT WANTS TO ARM EVERY SOMALI AND AMERICAN MOTHER WITH AUTOMATIC WEAPONS TO PROTECT AGAINST NAZISTYLE TYRANNY IF MY HISTORY LESSONS ARE CORRECT THE NAZIS USED PROPAGANDA DISINFORMATION AND INTIMIDATION TO CONVINCE THE MASSES TO GIVE A DICTATOR ABSOLUTE TOTAL CONTROL IF MR KNOX IS SO FEARFUL OF NAZI TACTICS WHY DOES THE NRA SEEM TO BE USING THE SAME TACTICS TO ACHIEVE THE SAME OBJECTIVES WITHIN THE NRA AND IN THE EMERGING NATIONAL DEBATE ON GUN CONTROL THE NRA AND MR KNOX'S BASIC DISINFORMATION IS THAT THE SECOND AMENDMENT TO THE CONSTITUTION GIVES INDIVIDUALS THE UNRESTRICTED RIGHT TO BEAR ARMS IT ACTUALLY READS A WELL REGULATED MILITIA BEING NECESSARY TO THE SECURITY OF A FREE STATE THE RIGHT OF THE PEOPLE TO KEEP AND BEAR ARMS SHALL NOT BE INFRINGED MAYBE THE FOUNDING FATHERS APPEARED TO MR KNOX IN A DREAM AND CLARIFIED THAT THE SECOND AMENDMENT'S WELL REGULATED MILITIA IS THE NRA IN THAT CASE MR KNOX'S READING OF THE SECOND AMENDMENT IS THE NRA BEING NECESSARY TO THE SECURITY OF A FREE STATE THE RIGHT OF THE PEOPLE TO KEEP AND BEAR ARMS SHALL NOT BE INFRINGED 9311180036 931118 LETTERS TO THE EDITOR WILLOWBROOK IMAGES VALIDATE SPECIAL ED YOUR OCT 20 EDITORIAL'S SHOTGUN BLAST AT SPECIAL ED'S SPECIAL COSTS DEMOLISHED THE TARGET SPECIAL ED'S SPECIAL COSTS GOOD JOB FOR THAT BUT IT WAS NO DEMONSTRATION OF SKILL MAY I SUGGEST THAT YOU SELECT A RIFLE NEXT TIME AND PRACTICE GOOD AIM HAVING SAID THAT I WANT TO SHARE MY OBSERVATION ON SOME OF WHAT DIDN'T EMERGE IN THE BLAST TWENTYFIVE YEARS AGO THE MENTALLY RETARDED WERE TREATED VERY DIFFERENTLY THAN ARE THEIR COUNTERPARTS WITH DEVELOPMENTAL DISABILITIES TODAY THE ORDER OF THE DAY WAS INSTITUTIONALIZATION WHERE TREATMENTS WERE OFTEN PRIMITIVE SOMETIMES INHUMANE RECALLING THE SOBERING IMAGES OF WILLOWBROOK IN THE '60S IT'S EASY TO SEE THAT AS A CIVILIZATION AND A CULTURE WE HAD FAR TO GO INSTITUTIONS LIKE WILLOWBROOK LEFT THEIR WARDS TO WASTE MENTALLY AND SOCIALLY IT IS THE CONSCIENCE AND DRIVE OF ADVOCATES FOR THESE CITIZENS TO DO WHAT'S RIGHT AND THEIR OWN SELFADVOCACY FOR THAT MATTER THAT INVALIDATED INSTITUTIONALIZATION AS THE WAY TO GO IN MOST CASES AND GAVE RISE TO SUCH ALTERNATIVES AS COMMUNITYBASED LIVING AND SPECIAL EDUCATION SERVICES HERE'S WHAT I THINK FAILED TO EMERGE IN THE BLAST FIRST THE OPERATING BUDGETS RELATED TO DOWNSIZED OR CLOSED INSTITUTIONS OVER THE YEARS HAVE NOT NECESSARILY BEEN REDEPLOYED OR ALLOCATED TO SERVE THEIR DEINSTITUTIONALIZED OR OTHER NONINSTITUTIONALIZED CLIENTS WHERE DID THE FUNDS GO YOUR GUESS IS AS GOOD AS MINE SECOND ALL BY ITSELF THE SYSTEM FOR DETERMINING AND ALLOCATING SPECIAL EDUCATION FUNDS TO LOCAL SCHOOL DISTRICTS OFTEN IS SUFFICIENT INCENTIVE FOR THEM TO CLASSIFY STUDENTS AS ELIGIBLE FOR SPECIAL EDUCATION SERVICES UNNECESSARILY TO PUT IT MILDLY MOREOVER THE SYSTEM'S REIMBURSEMENT STRUCTURE SOMETIMES PROMPTS INAPPROPRIATE PLACEMENTS OF STUDENTS OTHERWISE ELIGIBLE FOR SPECIAL EDUCATION SERVICES YES SPECIAL ED DOES HAVE SPECIAL COSTS AND THE SYSTEM IS NOT AS INTELLIGENTLY AND EFFICIENTLY ADMINISTERED AS IT NEEDS TO BE BUT ALONG WITH YOUR SUGGESTIONS THAT SPECIAL ED IS FOR EVERYONE AND IS ACHIEVABLE USING A PARENTAL VOUCHER SYSTEM TAKE PAUSE TO REMEMBER THAT THE REAL PURPOSE OF SPECIAL EDUCATION SERVICES WAS AND IS TO HELP PEOPLE WITH DEVELOPMENTAL DISABILITIES PLAY TO THEIR STRENGTHS AND ADAPT TO MEET THEIR EXTRAORDINARY CHALLENGES AS A PARENT OF A STUDENT WITH A DISABILITY AND A FISCAL CONSERVATIVE I FOUND MUCH IN YOUR EDITORIAL TO AGREE WITH HOWEVER YOUR COMMENT THAT MORE OFTEN THE GREAT EXPENSE COMES IN ACCOMMODATING THE STUDENT IN A MAINSTREAM INSTRUCTIONAL SETTING NEEDS CLARIFICATION THE OLD TECHNOLOGY KNOWN AS MAINSTREAMING IS NOT COSTEFFECTIVE BECAUSE IT CAN BE EXPENSIVE AND FREQUENTLY DOESN'T WORK THE NEW TECHNOLOGY FOR SERVING STUDENTS WITH DISABILITIES IN THE REGULAR EDUCATION SETTING INCLUSION HAS PROVEN COSTEFFECTIVE WHEN DONE WELL FOR EXAMPLE ILLINOIS'S BUTLER AND KEENYVILLE SCHOOL DISTRICTS ACHIEVE BETTER OUTCOMES WITH INCLUSION WITHOUT INCREASES IN COST YET THOSE DISTRICTS HAVE DECREASED THEIR DEMANDS ON THE CENTRALIZED TAXFUNDED SPECIAL ED COOPERATIVES WHICH IS LEADING TO SAVINGS THERE THUS WHILE INDIVIDUAL DISTRICTS SEE BETTER OUTCOMES AT THE SAME COSTS WITH INCLUSION OVERALL SYSTEM COSTS COULD GO DOWN UNFORTUNATELY AN ILLINOIS TEACHERS' UNION IS CIRCULATING A DOCUMENT THAT APPEARS TO RECOMMEND SABOTAGING THIS COSTEFFECTIVE APPROACH UNTIL THE UNION CAN GET EXTRA PAY FOR IT 9311180035 931118 THE HOUSE PASSES NAFTA THE AGREEMENT'S KEY PROVISIONS HERE ARE THE MAJOR ELEMENTS OF THE FIVEVOLUME NORTH AMERICAN FREE TRADE AGREEMENT US AND MEXICAN TARIFFS AND QUOTAS WOULD BE PHASED OUT MANY IN THE NEXT FEW YEARS OTHERS OVER 15 YEARS TARIFFS COULD BE REIMPOSED TEMPORARILY IF EXPORTS SURGE GOODS MADE WITH MATERIALS OR LABOR FROM OUTSIDE NORTH AMERICA WOULD QUALIFY FOR NAFTA TREATMENT ONLY IF THEY UNDERGO SUBSTANTIAL TRANSFORMATION WITHIN THE US MEXICO OR CANADA TARIFFS WOULD BE ELIMINATED AFTER EIGHT YEARS FOR AUTOS ONLY IF 625 OF THE COST 50 FOR THE FIRST FOUR YEARS 56 FOR THE FOLLOWING FOUR YEARS REPRESENTS NORTH AMERICAN MATERIALS OR LABOR AFTER 10 YEARS US PRODUCERS WOULD NO LONGER HAVE TO PRODUCE IN MEXICO TO SELL THERE STRICT RULES WOULD ELIMINATE TARIFFS ONLY FOR GOODS MADE FROM NORTH AMERICANSPUN YARN OR FROM FABRIC MADE FROM NORTH AMERICAN FIBERS QUOTAS COULD BE REIMPOSED TEMPORARILY IF IMPORTS CAUSE SERIOUS DAMAGE TO INDUSTRY ABOUT HALF OF EXISTING TARIFFS AND QUOTAS WOULD BE ELIMINATED IMMEDIATELY BUT THOSE ON POLITICALLY SENSITIVE CROPS SUCH AS US CORN SOLD TO MEXICO OR MEXICAN PEANUTS SUGAR AND ORANGE JUICE SOLD TO THE US WOULD BE LIFTED OVER 15 YEARS LIMITS ON TRUCKERS DRIVING CARGO ACROSS THE BORDER WOULD BE LIFTED BY THE END OF 1999 US COMPANIES COULD BUY MAJORITY STAKES IN MEXICAN TRUCKERS IN 2000 AND OWN THEM ENTIRELY IN 2003 MAJOR GOVERNMENT PURCHASES WOULD BE OPEN TO COMPANIES FROM ALL THREE NATIONS WITH A 10YEAR PHASEOUT OF MEXICAN RESTRICTIONS FOR PURCHASES BY ITS GOVERNMENTOWNED ENERGY INDUSTRY FOREIGN INVESTORS GENERALLY WOULD BE TREATED NO LESS FAVORABLY THAN DOMESTIC INVESTORS WITH EXCEPTIONS AND VARYING PHASEOUT PERIODS STRICT LIMITS WOULD APPLY TO MEXICO'S ENERGY AND RAILROAD INDUSTRIES US AIRLINES AND RADIO COMMUNICATIONS INDUSTRIES AND CANADA'S CULTURAL INDUSTRY MEXICO WOULD CONTINUE TO RESTRICT FOREIGN OWNERSHIP OF CERTAIN LAND MEXICO WOULD OPEN MOST PETROCHEMICAL AND ELECTRICGENERATION SECTORS TO US INVESTMENT BUT CONTINUE TO FORBID FOREIGN INVESTMENT IN OIL AND GAS EXPLORATION PRODUCTION AND REFINING US DRILLING COMPANIES WOULD FOR THE FIRST TIME BE ALLOWED TO SHARE IN PROFITS FROM OIL FOUND IN MEXICO LIMITS ON FOREIGN INVESTMENT IN MEXICAN BANKS INSURERS AND BROKERAGE FIRMS WOULD BE LIFTED OVER THE NEXT SEVEN TO 15 YEARS AN AGENCY WOULD BE ESTABLISHED IN CANADA TO INVESTIGATE ENVIRONMENTAL ABUSES IN ANY OF THE THREE COUNTRIES FINES OR TRADE SANCTIONS COULD BE IMPOSED ON COUNTRIES THAT FAIL TO ENFORCE THEIR OWN ENVIRONMENTAL LAWS AN AGENCY WOULD BE ESTABLISHED IN WASHINGTON TO INVESTIGATE LABOR ABUSES IF TWO OF THE THREE COUNTRIES AGREE FINES OR TRADE SANCTIONS WOULD BE IMPOSED ONLY IF COUNTRIES FAIL TO ENFORCE WORKERSAFETY RULES CHILDLABOR LAWS OR MINIMUMWAGE STANDARDS THE US WOULD SPEND UP TO 90 MILLION TO RETRAIN AND AID WORKERS WHO LOSE THEIR JOBS BECAUSE OF NAFTA IN THE FIRST 18 MONTHS THE US AND MEXICAN GOVERNMENTS WOULD INVEST 225 MILLION EACH IN A NEW NORTH AMERICAN DEVELOPMENT BANK THAT WOULD THEN BORROW 3 BILLION AND LEND THE MONEY TO AID COMMUNITIES HURT BY THE AGREEMENT AND TO HELP CLEAN UP BORDER AREAS THE USMEXICO BORDER ENVIRONMENTAL COMMISSION WOULD SPEND UP TO 8 BILLION FROM THE NEW NORTH AMERICAN DEVELOPMENT BANK THE WORLD BANK AND THE INTERAMERICAN DEVELOPMENT BANK ON VARIOUS ENVIRONMENTAL CLEANUP PROJECTS 9311180034 931118 THE HOUSE PASSES NAFTA HOW THE HOUSE VOTED ON THE NORTH AMERICAN FREE TRADE AGREEMENT WASHINGTON AP THE 234200 ROLL CALL WEDNESDAY NIGHT BY WHICH THE HOUSE APPROVED THE NORTH AMERICAN FREE TRADE AGREEMENT A YES VOTE IS A VOTE TO APPROVE THE AGREEMENT VOTING YES WERE 102 DEMOCRATS AND 132 REPUBLICANS VOTING NO WERE 156 DEMOCRATS 43 REPUBLICANS AND ONE INDEPENDENT THERE IS ONE VACANCY IN THE 435MEMBER HOUSE 9311180033 931118 THE HOUSE PASSES NAFTA CLINTON'S NAFTA DEALING SHOWS GAMBLER'S INSTINCTS BY MICHAEL K FRISBY AND JAMES M PERRY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SPENDING A DAY LAST SUMMER CRUISING NANTUCKET SOUND WITH MEMBERS OF THE KENNEDY CLAN CLAMBERED TO A POINT ON THE YACHT HIGH ABOVE THE WATER PAUSED ONLY A SECOND THEN TOOK A SPECTACULAR LEAP INTO THE SEA THIS IS SOMEONE WHO SEEMS TO ENJOY LIVING CLOSE TO THE EDGE SAYS THE UNIVERSITY OF NORTH CAROLINA'S WILLIAM LEUCHTENBURG A PRESIDENTIAL HISTORIAN BILL CLINTON'S A RIVERBOAT GAMBLER NEVER WAS HIS GAMBLER'S EDGE MORE ON DISPLAY THAN THIS WEEK AS HE FOUGHT TO WIN RATIFICATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT LAST NIGHT THAT FIGHT DREW TO A SUCCESSFUL CONCLUSION FOR THE PRESIDENT AS THE HOUSE OF REPRESENTATIVES APPROVED NAFTA BUT FOR WEEKS WHILE SOME WORRIED THAT HE WAS UNNECESSARILY RISKING HIS PRESIDENCY ON A POLITICALLY DUBIOUS ISSUE MR CLINTON SEEMED TO REVEL IN THE CRISIS GOD I LOVE THIS HE SAID AMID THE WHITE HOUSE CHAOS AFTER YET ANOTHER PHONE CHAT WITH AN UNDECIDED MEMBER OF CONGRESS WHEN IT BECAME CLEAR THE NAFTA FIGHT IN CONGRESS WOULD BE A BRUTAL ONE HIS STAFF GAVE HIM A LITTLE BLACK ADDRESS BOOK FILLED WITH THE NAMES OF ABOUT 80 WAVERING LAWMAKERS AND FROM DAWN TO MIDNIGHT WHENEVER HE HAD A CHANCE THE PRESIDENT WOULD GIVE ONE OF THEM A RING HE EVEN SEIZED ON SOME NAMES HIS STAFF HAD LISTED AS SOLIDLY OPPOSED TO THE TREATY AND HE CALLED THEM TOO A FEW SUCH AS FLORIDA REP CARRIE MEEK SWITCHED SIDES POLITICIANS AND PRESIDENTIAL SCHOLARS WATCHED THE HIGHWIRE ACT WITH JAWS AGAPE WHY SOME OF THEM ASKED DID HE FEEL THE NEED FOR SUCH A PERILSOFPAULINE FINISH AND WHY DID HE INSIST ON MAKING PASSAGE OF A LITTLEUNDERSTOOD AGREEMENT A TEST OF HIS ABILITY TO GOVERN ON SOME ISSUES WHEN HIS HEART AND MIND ARE NOT FULLY COMMITTED MR CLINTON CAN BE LISTLESS AND UNFOCUSED HE HAS DEMONSTRATED HE IS PERFECTLY WILLING TO WAFFLE AND EVEN RETREAT AS HE DID ON GAYS IN THE MILITARY AND SOME APPOINTMENTS TO IMPORTANT POSITIONS EARLY IN HIS ADMINISTRATION BUT ON THE BIG ISSUES WHEN HE FEELS HE ALONE IS THE GENERAL AND THE OUTCOME OF THE BATTLE IS IN DOUBT HE PUTS HIS REPUTATION ON THE LINE NAFTA IS THAT KIND OF BATTLE HEALTH CARE COMING UP NEXT IS ANOTHER IT'S HIS STYLE UNLIKE MOST POLITICIANS MR CLINTON LIKES HAVING HIS BACK TO THE WALL HE WORKS BEST WHEN TIME IS SHORT AND STAKES ARE HIGH TURNING UP THE THERMOSTAT FOR THESE CRUCIAL BATTLES CRITICS DOUBT MR CLINTON CAN KEEP THIS HAIRBREADTH HARRY ACT GOING FOREVER THE WHITE HOUSE HAS TOLD DEMOCRATS TWICE IN FOUR MONTHS FIRST ON THE SUMMER DEFICITREDUCTION PLAN AND NOW ON NAFTA THAT THEY HAD TO CAST AN UNPOPULAR VOTE TO SAVE THEIR PARTY'S PRESIDENT THAT LINE OF ARGUMENT WILL WORK ONLY SO OFTEN HE'S CASHING IN HIS CHIPS AT A PRETTY FAST PACE SAYS WILLIAM KRISTOL A REPUBLICAN STRATEGIST AND CHIEF OF STAFF FOR FORMER VICE PRESIDENT DAN QUAYLE WHAT'S MORE THE PROCESS OF MOVING FROM CRISIS TO CRISIS RAISES QUESTIONS ABOUT WHETHER THE ADMINISTRATION HAS THE ABILITY TO CALMLY HANDLE MORE THAN ONE ISSUE AT A TIME BUT FOR BETTER OR WORSE THIS SEEMS TO BE THE WAY THE PRESIDENT WILL FUNCTION WHAT WE HAVE SAYS STEPHEN HESS A BROOKINGS INSTITUTION SCHOLAR IS MOUNTAINGOAT GOVERNMENT THE GUY KEEPS JUMPING FROM ONE CRAG TO THE NEXT AND YOU WONDER IF HE'S GOING TO MAKE IT EVERY TIME FOR THE NAFTA FIGHT MR CLINTON TURNED THE OVAL OFFICE INTO A WAR ROOM AND HELPED DEVELOP AND CARRY OUT BOTH STRATEGY AND TACTICS HE KEPT HIS OWN VOTE COUNT AND MADE SURE HIS TRAVELING SCHEDULE INCLUDED STOPS WHERE HE MIGHT EXPECT TO BE TALKING TO FACTORY WORKERS WORRIED ABOUT LOSING JOBS TO MEXICO HE HAD SEVERAL TALKS WITH AL GORE ON THE EVE OF THE VICE PRESIDENT'S SUCCESSFUL DEBATE WITH ROSS PEROT HIS MESSAGE HIS AIDES SAY WAS WE CANNOT LET SOMEONE ELSE PRETEND TO BE THE CHAMPION OF THE WORKING PEOPLE HIS DRIVE TO WIN MEANT THE WHITE HOUSE WAS READY TO HORSETRADE IN A BIG WAY WITH BOTH DEMOCRATS AND REPUBLICANS STRIKING DEALS THAT NAFTA FOES CLAIM COULD COST ABOUT 1 BILLION THE ADMINISTRATION OFFERED SPECIAL PROTECTIONS OR INCENTIVES TO LAWMAKERS FROM SUGAR AND CITRUS REGIONS AS WELL AS TO OTHERS WHO REPRESENT VEGETABLE PEANUT AND WHEAT INTERESTS WHILE TRADE REPRESENTATIVE MICKEY KANTOR CUT THE BIG DEALS THE PRESIDENT FOCUSED ON REASSURING LAWMAKERS THAT HE WOULD LISTEN CLOSELY TO THEIR REQUESTS FOR MONEY FOR FEDERAL PROJECTS IN THEIR DISTRICTS POLITICIANS AND SCHOLARS ALIKE WATCH THE PRESIDENT'S HIGHRISK PERFORMANCE WITH AMAZEMENT STEPHEN SKOWRONEK A POLITICAL SCIENTIST AT YALE UNIVERSITY AND AUTHOR OF A NEW BOOK ON PRESIDENTIAL LEADERSHIP SAYS MR CLINTON MAY BE DEVELOPING A WHOLE NEW WAY OF GOVERNING IT'S AN ADHOC SORT OF THING HE SAYS HE KEEPS ASSEMBLING THESE NARROW COALITIONS AND MOST OF THE TIME THEY SEEM TO WORK THE NAFTA COALITION WAS SINGULAR BECAUSE SO MANY REPUBLICANS WERE PART OF IT PRESIDENTIAL SCHOLARS CAN'T RECALL A DEMOCRATIC PRESIDENT EVER NEEDING SO MANY GOP VOTES FOR A KEY PIECE OF DOMESTIC LEGISLATION NOR THEY AGREE DOES MR CLINTON FIT ANY PREVIOUS PATTERN DAVID GERGEN THE PRESIDENT'S CHIEF COUNSEL SAYS A NEW ERA OF FLOATING COALITIONS HAS BEEN USHERED IN BY MR CLINTON HE NOTES THAT WHILE HOUSE MAJORITY LEADER RICHARD GEPHARDT OPPOSED NAFTA HE WILL BE A KEY LEADER OF HEALTH REFORM OKLAHOMA DEMOCRATIC SEN DAVID BOREN FOUGHT THE BUDGET PACKAGE BUT WAS A FLOOR LEADER FOR CAMPAIGNFINANCE REFORM UNDER THE NEW RULES MR GERGEN SAYS TODAY'S ADVERSARY WILL BE TOMORROW'S FRIEND AND VICE VERSA IT MAY LOOK LIKE A GRAND DESIGN BUT IN REALITY IT IS A LOT MESSIER THAN THAT BY NATURE MR CLINTON IS DISORGANIZED AND MR HESS SAYS HIS STAFF IS NONHIERARCHICAL THAT MEANS NO ONE IS REALLY IN CHARGE SO PROBLEMS DON'T ALWAYS SHOW UP ON THE WHITE HOUSE RADAR SCREEN UNTIL THEY HAVE FLOWN IN THROUGH THE FRONT DOOR THE CLINTON WHITE HOUSE ALSO IS STILL TRYING TO FIND A CONSISTENT RHYTHM EVEN NAFTA BOOSTERS GRATEFUL FOR HIS FINAL BLITZ THINK THE PRESIDENT WAITED FAR TOO LONG TO START THE FIGHT IF HE HAD FOCUSED ON IT EARLIER THEY ARGUE HE PROBABLY COULD HAVE WRAPPED IT UP BY LAST SUMMER ROBERT BECKEL A DEMOCRATIC CONSULTANT WHO HAS HELPED PLOT THE NAFTA STRATEGY INSISTS HE WOULD RATHER FIGHT BESIDE MR CLINTON WHEN THE PRESIDENT IS RUNNING WELL BEHIND RATHER THAN WHEN HE IS WAY OUT FRONT WHEN HE'S AHEAD MR BECKEL SAYS THE PRESIDENT GETS LOST IN THE POLICY OF IT WHEN HE'S BEHIND HE UNDERSTANDS THE POLITICS INVOLVED AND HIS INSTINCTS COME FRONT AND CENTER HIS LASTMINUTE DASHES MAY ENERGIZE MR CLINTON AND THEY MAY WELL CONTINUE TO WORK FOR HIM ON DOMESTIC POLICY BUT CRITICS ARGUE THEY COULD BE A HARBINGER OF TROUBLE IN FOREIGN POLICY WHERE STABILITY AND PREDICTABILITY ARE THE MOST PRIZED TRAITS IN A PRESIDENT THE UNFAMILIAR CLINTON WAY OF CONDUCTING BUSINESS JUMPING FROM CRISIS TO CRISIS COALITION TO COALITION MAY HELP EXPLAIN WHY THE JURY IS STILL OUT AS FAR AS THE PUBLIC IS CONCERNED ON WHAT KIND OF PRESIDENT THEY HAVE PUT IN THE WHITE HOUSE WALL STREET JOURNAL/NBC NEWS POLLS THIS YEAR HAVE SHOWN AMERICANS SWINGING SHARPLY BACK AND FORTH ON SUCH QUESTIONS AS HOW MR CLINTON IS WORKING WITH CONGRESS OR UNITING THE COUNTRY HE'S EXTENDED THE QUESTION MARK LONGER THAN ANY OTHER PRESIDENT IN RECENT MEMORY SAYS MR SKOWRONEK 9311180032 931118 INDUSTRY FOCUS EUROPEANS BEGIN TO MAKE THEIR MARK IN SUPERCOMPUTERS MACHINE USING CLEVER ORGANIZATION CHEAP PARTS IS ATTRACTING ATTENTION BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LYONS FRANCE FOR DECADES EUROPEANS HAVE TRIED AND FAILED TO MAKE A MARK IN THE WORLD SUPERCOMPUTER MARKET AT LAST THEY'RE STARTING TO GET SOMEWHERE IN THE BASEMENT OF A BUILDING IN THIS FRENCH CITY A TEAM OF ENGINEERS IS WORKING ON A PROTOTYPE OF A NEW EUROPEAN SUPERCOMPUTER CODENAMED ACRI1 THIS IS A POLYGLOT BUNCH ITALIANS SCOTS ISRAELIS FRENCH AND SOME AMERICANS SOMETIMES THEY QUARREL LITTLE BLOWUPS AS ONE ENGINEER PUTS IT WHEN THEY MISUNDERSTAND EACH OTHER'S ENGLISH IN MEETINGS SOMETIMES MONEY IS SCARCE BUT THEY'RE ALREADY ATTRACTING ATTENTION OUTSIDE EUROPE THEIR PROTOTYPE USES SOME CLEVER EUROPEAN IDEAS IN COMPUTER ORGANIZATION TO TURN CHEAP OFFTHESHELF COMPONENTS INTO A FAST PARALLEL SUPERCOMPUTER WHILE OTHERS HAVE DONE THIS BEFORE THEIR DESIGN SPLITS UP THE TASKS DIFFERENTLY USING SEPARATE CHIPS TO PERFORM SEPARATE FUNCTIONS SO THEIR COMPUTER WILL BE FASTER AND CHEAPER BETTING ON ITS SUCCESS DIGITAL EQUIPMENT CORP HAS CHIPPED IN SEED MONEY ABOUT 500000 FOR A 7 STAKE CRAY RESEARCH INC THE WORLD'S LEADING SUPERCOMPUTER MAKER HAS FORMED TWO JOINT VENTURES WITH THE COMPANY STERN COMPUTING SYSTEMS SA NOTHING'S CERTAIN BUT IF THE FINAL PRODUCT IN 1995 LIVES UP TO ITS ADVANCE BILLING THEY SHOULD HAVE A VERY COMPETITIVE MACHINE SAYS ONE US SUPERCOMPUTERINDUSTRY ANALYST CHRISTOPHER WILLARD OF INTERNATIONAL DATA CORP SUDDENLY EUROPEAN IDEAS IN HIGHPERFORMANCE COMPUTING ARE GETTING TALKED ABOUT A GERMAN COMPANY PARSYTEC GMBH RECENTLY SOLD SUPERCHARGED MASSIVELY PARALLEL COMPUTERS TO JAPAN'S TOYOTA MOTOR CORP AND TO A US POSTAL SERVICE RESEARCH PROJECT GERMAN ELECTRONICS GIANT SIEMENS AG IS DEVELOPING A NEURAL NETWORK MACHINE WITH ITS OWN ULTRAFAST COMPONENTS AND BRITAIN'S ICL PLC 80OWNED BY FUJITSU LTD OF JAPAN LAST MONTH UNVEILED ITS HIGHPERFORMANCE ENTRANT DUBBED GOLDRUSH SOCALLED AN ICL EXECUTIVE JOKES BECAUSE WE NEED THE MONEY AND WE'RE IN A HURRY THE BIGGEST SUCCESS IS MEIKO WORLD INC A SMALL BRITISHOWNED COMPANY THAT IN JULY STUNNED US COMPETITORS BY SELLING A 175 MILLION SUPERCOMPUTER TO LAWRENCE LIVERMORE LABORATORY A US WEAPONS LAB THAT'S AMONG THE WORLD'S PICKIEST SUPERCOMPUTER BUYERS MEIKO WON THE SALE IN COMPETITION AGAINST THINKING MACHINES CORP OF CAMBRIDGE MASS AND OTHER LEADING PLAYERS IN THE US INDUSTRY MAKING MASSIVELY PARALLEL SUPERCOMPUTERS IT WAS SURPRISING THAT LIVERMORE SELECTED THAT PRODUCT SAYS JACEK MYCZKOWSKI THINKING MACHINES' DIRECTOR OF TECHNICAL MARKETING STILL HE SAYS IN EUROPE THERE ARE A LOT OF VERY GOOD IDEAS EUROPEANS CERTAINLY DON'T POSE ANY COMPETITIVE THREAT YET TO THE DOMINANT US MANUFACTURERS LAST YEAR IDC ESTIMATES THE EUROPEANS WON JUST 38 OF THE 33 BILLION WORLDWIDE HIGHPERFORMANCE COMPUTING MARKET WHILE US FIRMS HAD MORE THAN 83 BUT SUCH FIGURES BELIE THE IMPORTANCE OF THE EUROPEAN IDEAS ESPECIALLY ON SUPERCOMPUTER SOFTWARE SO MUCH SO THAT CRAY OFFICIALS HAVE BEEN CRISSCROSSING THE CONTINENT SIGNING EUROPEAN DEVELOPERS ON AS PARTNERS I WOULD LIKE TO MAKE SOME KIND OF JOINT VENTURE WITH EVERY SINGLE ONE OF THEM SAYS ROBERT LEVY CRAY'S VICE PRESIDENT FOR EUROPEAN SALES AND DEVELOPMENT BUT OTHERS ARE CONCERNED ABOUT A SHIFT IN THE BALANCE OF WORLD POWER THAT HAS LONG KEPT THIS CUTTINGEDGE TECHNOLOGY UNDER US CONTROL FOR DECADES THE US WAS ABLE TO RESTRICT EXPORTS OF SUPERCOMPUTERS TO ITS CLOSEST ALLIES MAKING IT HARDER FOR THIRDWORLD COUNTRIES TO GET HOLD OF THEM FOR NUCLEARWEAPONS DEVELOPMENT EVEN WHEN JAPAN ENDED THE US MONOPOLY IN THE LATE 1970S THE US PRODDED TOKYO INTO AN AGREEMENT BARRING SALES TO NATIONS THAT HAVEN'T FORSWORN NUCLEAR PROLIFERATION EUROPEAN GOVERNMENTS HAVEN'T YET TAKEN SUCH A PLEDGE A FACT THAT IRKS SOME PEOPLE THERE WERE OBJECTIONS FOR EXAMPLE WHEN MEIKO WON THE LAWRENCE LIVERMORE SALE BECAUSE IN 1991 MEIKO SOLD A MACHINE TO ISRAEL'S TOP TECHNICAL UNIVERSITY A THINK TANK FOR ISRAEL'S CLANDESTINE NUCLEARWEAPONS PROGRAM WHEN A COMPANY MEIKO UNDERCUTS A US POSITION LIKE THAT IT SHOULDN'T BE REWARDED BY GETTING A BIG CONTRACT FROM A NATIONAL LAB SAYS GARY MILHOLLIN HEAD OF THE WISCONSIN PROJECT FOR NUCLEAR ARMS CONTROL THAT SUCH A CASE EVEN ARISES IS ASTONISHING AFTER ALL THE EUROPEAN COMPUTER INDUSTRY IN GENERAL IS A BASKET CASE WITH MOST OF ITS HARDWARE MAKERS EITHER UNPROFITABLE OR INVISIBLE ABROAD AND PAST EUROPEAN EFFORTS AT SUPERCOMPUTING HAVE BEEN COSTLY DISAPPOINTMENTS THEY PRODUCED HARDWARE NEEDED FOR WEAPONSDEVELOPMENT PROGRAMS BUT NEVER YIELDED ANYTHING THAT WOULD SELL COMMERCIALLY BUT A FEW FUNDAMENTAL DEVELOPMENTS HAVE PERMITTED THE CURRENT FLOURISHING OF TALENT FIRST WAS THE EUROPEAN COMMUNITY'S ESPRIT HIGHTECH RESEARCH PROGRAM WHICH SCATTERED SEED MONEY ALL AROUND THE EC TO SUPPORT COLLABORATIVE SUPERCOMPUTER RESEARCH TO KEEP UP THE MOMENTUM THE EC COMMISSION IS SEEKING AUTHORITY TO SPEND 140 MILLION A YEAR THROUGH 1998 ON SUPERCOMPUTING ANOTHER AID TO THE EUROPEANS WAS A CHANGE IN THE NATURE OF SUPERCOMPUTING WORLDWIDE WITH THE ADVENT OF MASSIVELY PARALLEL MACHINES IN WHICH HUNDREDS OF PROCESSORS WORK TOGETHER ON THE SAME PROBLEM THE SPEED OF THE INDIVIDUAL HARDWARE COMPONENTS BECOMES LESS IMPORTANT INSTEAD THE CLEVERNESS OF THEIR ORGANIZATION THE SOFTWARE COUNTS FOR MORE AND MORE NOWADAYS YOU CAN BUILD A PARALLEL PROCESSOR IN YOUR GARAGE SAYS PETER SLAVID AN ICL MARKETING MANAGER THAT PLAYS INTO ONE STRENGTH THAT THE EUROPEANS HAVE LONG HAD AT SOFTWARE FINALLY IN CONTRAST TO PAST STATERUN EFFORTS MOST OF THE PLAYERS NOW ARE SMALL STARTUP COMPANIES FOUNDED BY A FEW HUNGRY ACADEMICS OR ENGINEERS INDEED THE ACRI1 TEAM IS LIKE A FORMULA ONE RACING CAR GROUP SMALL FOCUSED AND HIGHTECH THEIR PROTOTYPE NAMED AFTER ADVANCED COMPUTER RESEARCH INSTITUTE THE DEVELOPMENT ARM OF STERN COMPUTING IS AIMED AT MAKING SUPERCOMPUTING AFFORDABLE TO A BROAD MARKET IT RELIES HEAVILY ON OFFTHESHELF HARDWARE INCLUDING DIGITAL'S NEW ALPHA MICROPROCESSOR AND STANDARD DYNAMIC RANDOM ACCESS MEMORY CHIPS INSTEAD OF THE BLINDINGLY FAST AND EXPENSIVE CHIPS USED IN MANY OTHER SUPERCOMPUTERS BUT THE SECRET IS IN THE WAY IT'S ALL ORGANIZED THE RESULT IS A PROTOTYPE WITH PERFORMANCE THAT PUTS IT UP AGAINST CRAY'S LOW TO MIDDLE RANGE OF PRODUCTS ANALYSTS SAY YET IT WILL COST 1 MILLION TO 2 MILLION A THIRD TO A SIXTH THE PRICE OF A COMPARABLE CRAY BY STERN'S CALCULATIONS THE CENTRAL PROCESSORS IN ALL COMPUTERS PERFORM THREE BASIC FUNCTIONS MAKING CALCULATIONS ORDERING DATA AND INSTRUCTIONS FROM MEMORY AND INTERPRETING INSTRUCTIONS NORMALLY ALL THREE FUNCTIONS ARE HANDLED BY THE SAME CHIP BUT ACRI1 USES WHAT ITS DESIGNERS CALL DECOUPLED LOGIC DEVOTING A SEPARATE CHIP TO EACH FUNCTION AND THEN FREEING THEM FROM EACH OTHER SO THEY DO THEIR JOBS INDEPENDENTLY THEN IT COMBINES UP TO SIX OF THESE THREECHIP UNITS INTO A SINGLE MACHINE ABOUT THE SIZE OF A SMALL CAR BUT WITH MORE THAN A YEAR BEFORE ACRI1 IS READY FOR SALE PLENTY COULD STILL GO WRONG TO HELP TIDE IT OVER UNTIL 1995 THE COMPANY LAST MONTH STARTED ACTING AS A SALES AGENT FOR DIGITAL'S OWN LOWERPOWERED ALPHABASED COMPUTERS BUT ITS GOAL AUDACIOUS FOR A EUROPEAN COMPANY IS EVENTUALLY TO CAPTURE 10 OF THE WORLDWIDE SUPERCOMPUTER MARKET IT WILL TAKE TIME SAYS MR STERN BUT I WANT TO SEE A EUROPEAN AS A WELLKNOWN REFERENCE COMPANY IN THIS INDUSTRY 9311180031 931118 THE HOUSE PASSES NAFTA ADMINISTRATION BROKERED DEALS IN CASES ARCANE TO WIN SUPPORT BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT CAME DOWN TO A BARRAGE OF DEALS INCLUDING THE PROMISE BY MEXICO TO EXTRADITE AN ACCUSED RAPIST THE TRADE PACT WAS SUPPOSED TO WIN ON ITS MERITS BUT IN THE WEEKS LEADING TO YESTERDAY'S VOTE IT WASN'T CLEAR THAT WOULD HAPPEN SO PRESIDENT CLINTON AND HIS LIEUTENANTS BROKERED DEALS TO SECURE THE VOTES OF FENCESITTING LAWMAKERS EVEN MEXICO WAS PRODDED TO PROVIDE CONCESSIONS REP CLAY SHAW ANNOUNCED HIS SUPPORT AFTER MEXICO'S ATTORNEY GENERAL PLEDGED THAT THE GOVERNMENT WOULD EXTRADITE A MAN ACCUSED LAST YEAR OF RAPING A FOURYEAROLD GIRL IN RIVERSIDE CALIF IF THE ACCUSED RAPIST WHO ALLEGEDLY FLED TO MEXICO IS CAPTURED I CUT MY DEAL WITH MEXICO SAID THE FLORIDA REPUBLICAN ADDING THE ADMINISTRATION GAVE ME A LOT OF HELP ALREADY NAFTA FOE RALPH NADER HAS DISPATCHED A NAFTA PORK PATROL TO CALCULATE THE COST OF THE DEALS TO US TAXPAYERS MEANWHILE CLINTON ADMINISTRATION OFFICIALS ARE SCRAMBLING TO PLAY DOWN THE EXPENSE ARGUING THAT IN MOST CASES THEY ARE ENSURING THAT CERTAIN US INDUSTRIES AND THEIR WORKERS DON'T GET HURT BY THE TRADE PACT TREASURY SECRETARY LLOYD BENTSEN WAS CAREFUL TO STRESS YESTERDAY THAT THE DEALS DIDN'T EQUATE TO VOTES BEING BOUGHT RATHER HE SAID THEY REPRESENTED A STRENGTHENING OF NAFTA THERE IS NO NET COST TO THE TREASURY AS A RESULT OF THE DEALS HE INSISTED SOME LAWMAKERS DENIED ACCEPTING DEALS REP GENE GREEN D TEXAS SAID HE DIDN'T TRADE HIS YES VOTE FOR A PLEDGE BY TRANSPORTATION SECRETARY FEDERICO PENA TO ASSIST HIM TO GET FEDERAL FUNDING TO BUILD A BRIDGE IN HIS DISTRICT LIKEWISE REP EDDIE BERNICE JOHNSON D TEXAS DENIED SWAPPING HER SUPPORT FOR AN ADMINISTRATION PROMISE TO CONTINUE ACQUIRING MCDONNELL DOUGLAS CORP'S TROUBLED C17 MILITARY CARGO JET PART OF WHICH IS MADE IN HER DISTRICT BUT THE LAUNDRY LIST OF DONE DEALS DECIDEDLY ARCANE AT TIMES IS SURE TO BE SCRUTINIZED AND CRITICIZED IN THE COMING DAYS A REPORT CIRCULATED BY NAFTA FOES SUGGESTED THE LIST IS EVEN MORE EXTENSIVE AND INCLUDES FEDERAL JOB GRANTS ROAD PROJECTS AND THE APPOINTMENT OF REGIONAL TRADE OFFICIALS WHILE ADMINISTRATION OFFICIALS DENIED THAT ONE OFFICIAL ACCUSED OPPONENTS OF RESORTING TO CONSPIRACY THEORIES THEY DID ACKNOWLEDGE A NUMBER OF ARRANGEMENTS THESE INCLUDE A PROMISE TO PROTECT THE US VEGETABLE INDUSTRY INCLUDING TOMATOES SUGAR BEETS ASPARAGUS AND SWEET PEPPERS FROM A SURGE OF IMPORTS IN PART BY EXPEDITING REQUESTS FOR TRADE RELIEF A PLEDGE TO START 60 DAYS OF NEGOTIATIONS WITH CANADA OVER THE SUBSIDIES CANADA GIVES ITS DURUMWHEAT FARMERS AND TO INITIATE AN INVESTIGATION IF THOSE TALKS DON'T RESOLVE A CLAIM OF UNFAIR SUBSIDIZATION ULTIMATELY THE US WOULD HAVE THE OPTION OF IMPOSING QUOTAS IF NECESSARY A PROMISE TO ENSURE THAT THE PEANUT BUTTER INDUSTRY ISN'T HURT BY IMPORTS A PLEDGE TO PROTECT THE US SUGAR INDUSTRY FROM MEXICAN IMPORTS PARTLY BY INCLUDING HIGHFRUCTOSE CORN SYRUP IN CALCULATING HOW MUCH SUGAR IS IMPORTED TO THE US A SNAPBACK PROVISION THAT WOULD PUSH TARIFFS BACK TO PRENAFTA LEVELS IF PRICES FOR ORANGEJUICE CONCENTRATE FALL BELOW CERTAIN LEVELS A PROMISE TO START NEGOTIATING QUICKER TARIFF REDUCTIONS FOR HOME APPLIANCES A PLEDGE TO START DISCUSSING A DISMANTLING OF TARIFFS FOR BEDDING COMPONENTS A PLEDGE TO START NEGOTIATING QUICKER TARIFF CUTS FOR THE US WINE INDUSTRY A NEGOTIATION OF POSSIBLE CHANGES IN THE ADMINISTRATION'S PLANS TO INCREASE GRAZING FEES ON FEDERAL LANDS THE CLINTON ADMINISTRATION ALSO FORKED OVER A LOT OF MONEY SOME OF THESE DEALS INCLUDED 9311180030 931118 BUSINESS BRIEF HANSON PLC QUANTUM SUBSIDIARY TO CLOSE 3 POLYMERMAKING REACTORS QUANTUM CHEMICAL CO CINCINNATI SAID IT WILL SHUT DOWN THREE POLYMERPRODUCING REACTORS AND ELIMINATE 61 JOBS QUANTUM WHICH WAS ACQUIRED BY BRITAIN'S HANSON PLC IN SEPTEMBER MANUFACTURES POLYETHYLENE AS WELL AS CHEMICALS AND SPECIALTY POLYMERS QUANTUM SAID IT WILL CLOSE TWO OF ITS OLDEST REACTORS IN LA PORTE TEXAS WHICH TOGETHER PRODUCE 60 MILLION POUNDS OF LOWDENSITY POLYETHYLENE POLYMERS PER YEAR THE PLANTS WHICH ARE EXPECTED TO CLOSE ON DEC 31 WILL RESULT IN THE LOSS OF 28 JOBS HANSON ALSO WILL CLOSE A REACTOR IN TUSCOLA ILL WHICH PRODUCES 15 MILLION POUNDS OF POLYMERS PER YEAR THE CLOSING OF THE TUSCOLA REACTOR EXPECTED AT THE END OF JANUARY 1994 WILL RESULT IN THE LOSS OF 33 POSITIONS 9311180029 931118 WHO'S NEWS AZTEC MANUFACTURING CO AZTEC MANUFACTURING CO CROWLEY TEXAS MARTIN C BOWEN PRESIDENT OF PERFORMING ARTS FORT WORTH WAS ELECTED TO THE BOARD OF THIS ELECTRICAL AND OIL FIELD PRODUCTS COMPANY MR BOWEN 50 YEARS OLD SUCCEEDS RW DIAL 87 WHO WILL RETIRE 9311180028 931118 COORS UNIT TO BUY BREWERY IN MADRID TO EXPAND IN EUROPE GOLDEN COLO COORS BREWING CO A UNIT OF ADOLPH COORS CO SAID IT HAS SIGNED AN AGREEMENT TO BUY A BREWERY IN SPAIN FROM EL AGUILA SA MADRID TERMS WEREN'T DISCLOSED THE MOVE IS THE LATEST IN A SERIES OF EFFORTS BY THE NATION'S THIRDLARGEST BREWER TO INCREASE ITS INTERNATIONAL PRESENCE IN AN UNRELATED MATTER THE PARENT COMPANY SAID IT WILL TAKE A FOURTHQUARTER PRETAX CHARGE OF BETWEEN 100 MILLION AND 125 MILLION TO ACCOUNT FOR THE COSTS OF ITS RESTRUCTURING EFFORTS THE SPANISH BREWERY LOCATED IN ZARAGOZA WILL BE THE FIRST OVERSEAS BREWERY OWNED BY COORS THE PURCHASE OF THIS FACILITY WILL PROVIDE US WITH A FOOTHOLD IN THE EUROPEAN MARKET IN KEEPING WITH OUR INTERNATIONAL EXPANSION STRATEGY COORS BREWING CHIEF EXECUTIVE PETER H COORS SAID COORS IS ALSO BUILDING A BREWERY IN KOREA WITH A JOINTVENTURE PARTNER JINRO LTD WHICH IS EXPECTED TO BEGIN BEER PRODUCTION IN MAY 1994 THE SPANISH BREWERY IS THE LATEST BREWERY SOLD IN THE PAST TWO YEARS BY EL AGUILA AS ITS 51OWNER HEINEKEN NV AMSTERDAM TRIES TO IMPROVE THE COMPANY'S RESULTS COORS SAID IT DOESN'T EXPECT TO LAY OFF WORKERS AT THE BREWERY BUT THE SALE IS CONTINGENT ON REACHING AN AGREEMENT WITH THE BREWERY'S LABOR UNIONS THE CHARGE AGAINST EARNINGS ANNOUNCED BY COORS' PARENT INCLUDES THE 65 MILLION TO 75 MILLION THE COMPANY ALREADY SAID IT WOULD TAKE TO ACCOUNT FOR COSTS OF REDUCING ITS WHITECOLLAR WORK FORCE BY 643 PEOPLE MANY PEOPLE ELECTED TO TAKE THE VOLUNTARY SEVERANCE OR EARLY RETIREMENT PACKAGES THE COMPANY OFFERED IN AN EFFORT TO REDUCE ITS WHITECOLLAR EMPLOYMENT 9311180026 931118 MARKETING & MEDIA MARKETSCAN PET SUPERSTORES COLLAR CUSTOMERS FROM SUPERMARKETS SMALL SHOPS BY NEELA BANERJEE SUPERSTORES HAVE GONE TO THE DOGS AND CATS HAVING SUCCESSFULLY PENETRATED THE BOOK OFFICESUPPLY AND HOMEIMPROVEMENT MARKETS SUPERSTORES NOW ARE MUSCLING INTO THE 15 BILLION PETPRODUCTS BUSINESS AND STEALING CUSTOMERS FROM SUPERMARKETS AND SMALL PET SHOPS ABOUT 500 SUPERSTORES HAVE OPENED NATIONWIDE THE MAJORITY OF THEM IN THE PAST 18 MONTHS ACCORDING TO THE PET INDUSTRY JOINT ADVISORY COUNCIL A TRADE ORGANIZATION THE BOOM IS STILL AHEAD OF US SAYS BRIAN DEVINE CHIEF EXECUTIVE OF THE PETCO SUPERSTORE CHAIN NOTING THAT 30 OTHER COMPANIES ARE WOOING VENTURE CAPITALISTS TO GET INTO PET RETAILING WITH ITS 200 STORES CLOSELY HELD PETCO OF SAN DIEGO LEADS THE SUPERSTORE PACK FOLLOWED BY PETSMART INC WHICH EXPECTS TO HAVE 107 STORES BY YEAR END CONCENTRATED INITIALLY IN THE SOUTHWEST AND SOUTHEAST SUPERSTORES NOW ALSO DOT BOTH COASTS AND ARE SPREADING INTO THE MIDWEST WHY THE EXPLOSION OF INTEREST IN SCRATCHING POSTS AND KIBBLE AMERICANS SPEND MORE ON PETS THAN EVER AS THEY COME TO SEE THEM LESS AS ANIMALS AND MORE AS MEMBERS OF THE FAMILY PEOPLE TEND TO ANTHROPOMORPHIZE ANIMALS THEY LIKE TO SPEND MONEY ON THEM AND FEEL LIKE THEY'RE BEING CONSCIENTIOUS PET OWNERS SAYS STEVE BARNETT A PRINCIPAL AT GLOBAL BUSINESS NETWORK A CONSULTING COMPANY THEY LIKE HAVING A TREMENDOUS NUMBER OF OPTIONS WHICH SUPERSTORES PROVIDE SUPERMARKETS WHICH SELL THE BULK OF THE NATION'S PET FOOD ARE JITTERY NOW THAT SUPERSTORES ARE AGGRESSIVELY HAWKING PET FOOD AT CUTRATE PRICES FOR THE 12 WEEKS ENDED SEPT 12 SUPERMARKETS' DOLLAR SALES OF DRY DOG FOOD WERE DOWN 24 WHILE CANNED DOG FOOD SLIPPED 37 DOLLAR SALES OF CANNED CAT FOOD FELL 32 AND DRY CAT FOOD DROPPED 25 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE UNIT VOLUME OF PET FOOD IS ALSO DECLINING IN SUPERMARKETS MASS MERCHANDISERS WAREHOUSE CLUBS AND NOW SUPERSTORES HAVE GRADUALLY CHIPPED AWAY AT SUPERMARKETS' MARKET SHARE OF HIGH PROFITMARGIN PET FOOD SALES GROCERY STORES CURRENTLY SELL 60 OF PET FOOD COMPARED WITH NEARLY 95 A DECADE AGO ESTIMATES THE PET INDUSTRY JOINT ADVISORY COUNCIL MANY SUPERMARKETS ARE RETALIATING BY TRIMMING PRICES ON PET FOODS USUALLY SOLD AT A HIGH MARKUP SAYS GARY M GIBLEN A RETAIL ANALYST AT PAINEWEBBER GROUP INC GREAT ATLANTIC & PACIFIC TEA CO SAID SALES OF PET FOODS HAVE BEEN FLAT FOR THE LAST FEW YEARS AND NOW ITS FARMER JACK STORES IN DETROIT ARE FEELING THE SQUEEZE OF COMPETITION FROM NEARBY PET SUPERSTORES IN RESPONSE TO LIMP SALES THROUGHOUT THE CHAIN A&P HAS DECIDED TO PUT PET FOODS ON SALE MORE FREQUENTLY AND PRICE COMPETITIVELY RALSTONRALSTON PURINA GROUP HJ HEINZ CO AND OTHER MAKERS OF SUPERMARKET PETFOOD BRANDS STAND TO LOSE MARKET SHARE WITH THE ADVENT OF SUPERSTORES ALL THE SUPERSTORE CHAINS EXCEPT PETCO CARRY SUPERMARKET BRANDS AND PUBLICLY MANUFACTURERS ASSERT THAT THEIR PRESENCE IN SUPERSTORES CAN ONLY BOOST SALES BUT PETINDUSTRY EXECUTIVES CLAIM THAT WHILE SUPERSTORES ATTRACT PEOPLE WITH THEIR LOW PRICES ON SUPERMARKET BRANDS THE STORES ACTUALLY PUSH MORE EXPENSIVE PREMIUM BRANDS IT IS POTENTIALLY DETRIMENTAL TO BE IN SUPERSTORES CONCEDES MIKE MILONE VICE PRESIDENT OF MARKETING AT HJ HEINZ'S PET FOOD DIVISION MAKER OF NINE LIVES CAT FOOD MY WIFE AND I WENT INTO SOME ASKING FOR OUR BRANDS BUT WERE TOLD THEY WERE INFERIOR AND WE SHOULD GET PREMIUM FOODS OF COURSE COMPANIES THAT MAKE SUCH PREMIUM PET FOODS AS IAMS AND HILL'S SCIENCE DIET COULDN'T BE HAPPIER THE PET INDUSTRY JOINT ADVISORY COUNCIL ESTIMATES THAT PREMIUM FOODS ACCOUNT FOR 20 TO 23 OF ANNUAL PET FOOD SALES OF 81 BILLION COMPARED WITH A 15 MARKET SHARE FIVE YEARS AGO PREMIUM BRANDS IN SUPERSTORES ARE STILL PRICIER THAN GROCERYSTORE BRANDS BUT HEFTY DISCOUNTS MAKE THEM MORE AFFORDABLE THAN IN SMALL PET SHOPS SMALL PET SHOPS ARE BEING HIT VERY HARD BY SUPERSTORES ON AVERAGE SMALL RETAILERS' REVENUES PLUMMET 25 WHEN A SUPERSTORE OPENS IN THE AREA MANY CLOSE BUT OTHERS COME OUT FIGHTING JOE CRAY OF CATONSVILLE MD RAN A BILLBOARD AD FOR HIS SMALL STORE RIGHT ACROSS FROM A PET AUTHORITY SUPERSTORE BONNIE DENDOOVEN MOVED HER REPTILE STORE NEXT DOOR TO THE PETSMART IN LAS VEGAS TO CATCH THE OVERFLOW SHE SAYS SALES ARE UP TO SURVIVE SMALL RETAILERS HAVE DITCHED MOST PET FOODS AND ARE SPECIALIZING IN PRODUCTS FOR A PARTICULAR SPECIES SUCH AS BIRDS OR CATS WE CAN'T COMPETE WITH THE SUPERSTORES HEAD ON ON PRICE SAYS GWEN POWELL OWNER OF LONG BEACH PET AND FEED IN LONG BEACH CALIF THE POINT IS TO BE DIFFERENT AND FIND A NICHE THE SUPERSTORES TRY TO RESEMBLE SMALL NEIGHBORHOOD STORES THEY SHUN THE NOFRILLS WAREHOUSE LOOK STRIVING INSTEAD TO CREATE A WARMER ATMOSPHERE WHERE CUSTOMERS WILL STICK AROUND AND SPEND ON MORE ITEMS PETS NATURALLY ARE PERMITTED TO ROAM THE AISLES STORES ARE DECORATED WITH PRIMARY COLORS AND SENTIMENTAL POSTERS OF KIDS AND ANIMALS BUT SOME PETSHOP OWNERS SAY AFTER THE INITIAL CURIOSITY WEARS OFF CUSTOMERS OFTEN TRICKLE BACK TO THEM BECAUSE SUPERSTORES DESPITE EMPLOYEE TRAINING PROGRAMS LACK THE SAME DEGREE OF PERSONAL SERVICE SUPERSTORES CONCEDE THERE ARE GLITCHES BUT SALES ARE BOOMING AND THE CHAINS ARE RACING TO OPEN NEW STORES IN LUCRATIVE MARKETS THEIR SUCCESS HAS ALREADY REGISTERED ON THE STOCK MARKET PETSMART WENT PUBLIC IN AUGUST AT 18 A SHARE AND ITS STOCK PRICE HAS SINCE DOUBLED PETSTUFF INC BASED IN ATLANTA BEGAN TRADING EARLIER THIS MONTH AND PETCO HAS HIRED INVESTMENT BANKERS TO EXPLORE AN INITIAL PUBLIC OFFERING OUR GROWTH POTENTIAL AS AN INDUSTRY IS STILL UNTAPPED SAYS MR DEVINE OF PETCO WE'RE YEARS AWAY FROM HITTING A PLATEAU MOST SUPERSTORES FOLLOW A SIMILAR MARKETING STRATEGY PET FOOD IS STORED IN THE BACK SO PEOPLE WALK PAST RACKS OF MORE EXPENSIVE TOYS LEASHES AND PET BEDS ON THE WAY SOME STORES OFFER SERVICES FOR PETS EACH PETSMART FOR EXAMPLE HAS ONSITE GROOMING MANY HAVE ROOMS FOR OBEDIENCE CLASSES AND ABOUT ONETHIRD PROVIDE BASIC VETERINARY SERVICES LOATH TO ALIENATE LOCAL VETS AND TRAINERS BY TAKING AWAY BUSINESS SOME CHAINS GIVE REFERRALS INSTEAD SUPERSTORES KNOW HOW TO BE POLITICALLY CORRECT AND MAKE MONEY TOO PETCARE SUPERSTORE OF AURORA ILL PHOTOGRAPHS CUSTOMERS' PETS WITH SANTA CLAUS EACH CHRISTMAS AND PROCEEDS GO TO HUMANE SOCIETIES PETSMART WHICH SPENDS 40 OF MARKETING DOLLARS SPONSORING ADOPTIONS FROM SHELTERS EXPECTS 23000 DOGS AND CATS WILL BE ADOPTED THIS YEAR ULTIMATELY THE MORE ANIMALS THAT FIND A HOME THE MORE NEW CUSTOMERS SUPERSTORES GAIN 9311180024 931118 RETAIL COMBAT WAREHOUSECLUB WAR LEAVES FEW STANDING AND THEY ARE BRUISED WALMART AND PRICECOSTCO SURVIVE BITTER US CLASH WILL RESUME IT IN MEXICO AN INTENSE GAME OF CHICKEN BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL ANYONE WHO DOUBTS WHAT A CUTTHROAT BUSINESS DISCOUNT RETAILING HAS BECOME NEED ONLY LOOK AT THE WORLD OF WAREHOUSE CLUBS TODAY IN A WAR OF ATTRITION STRETCHING FROM MAINE TO MEXICALI THE OPERATORS OF THE SPRAWLING WAREHOUSE STORES HAVE JUST SEEN THEIR NUMBERS WHITTLED MERCILESSLY FROM EIGHT TO THREE OR ONLY TWO IF COUNTING JUST THOSE CHAINS THAT OPERATE NATIONWIDE THE STRUGGLE WAS CAPPED TWO WEEKS AGO WHEN KMART CORP WORN DOWN BY COMPETITION THAT LEFT SCANT ROOM FOR PROFITS GAVE UP ON THE BUSINESS AND AGREED TO SELL MOST OF ITS REMAINING OUTLETS TO WALMART STORES INC BUT NOW THE SURVIVORS WALMART'S SAM'S CLUB PLUS A MERGED PRICE CO AND COSTCO AND THE REGIONAL BJ'S CHAIN FACE NEW CHALLENGES THOUGH THEY HAVE KNOCKED OFF SEVERAL RIVALS THEY DID SO PARTLY BY CONSTANTLY ATTACKING THE OTHERS ON THEIR OWN TURF AND AS A RESULT NOW FIND THEMSELVES OVERBUILT IN MANY MARKETS AND STILL HAVING TO STRUGGLE HEADTOHEAD IN MANY PLACES WORSE THEY MUST SEARCH FOR NEW REVENUE STREAMS TO REVIVE A SUDDENLY FLAGGING GROWTH IN THE INDUSTRY WALMART EMERGES AS ONE CLEAR IF BATTERED WINNER OF THE WAREHOUSECLUB WARS AND A CLOSE LOOK AT THE BATTLE HELPS EXPLAIN THE METHODS WALMART USES TO STAY ATOP THE RETAIL WORLD AMONG THEM REMORSELESS PRICESLASHING AN INYOURFACE STRATEGY OF BUILDING OR RELOCATING STORES TO COMPETE DIRECTLY WITH INTERLOPERS AND SOMETIMES HIRING AWAY RIVALS' EMPLOYEES TO GET AN EDGE IN LOCAL MARKETS IN THE END THE INDUSTRY'S ACKNOWLEDGED LOWCOST OPERATOR USES ITS SIZE AND MARKET CLOUT TO BLEED RIVALS DRY WHEN SAM'S SENSES WEAKNESS THEY'VE ALWAYS BEEN VERY AGGRESSIVE SAYS LINDA T KRISTIANSEN AN ANALYST FOR WERTHEIM SCHRODER & CO ALLUDING TO WALMART'S RECENT PURCHASE OF PACE WAREHOUSE STORES FROM KMART ALONG WITH ITS COVETED MEMBERSHIP LIST PACE WAS A WEAKENED OPERATOR AND SAM'S JUST GAVE THEM THE KICK TO FINISH THEM OFF FOR MOST OF THE 19 YEARS SINCE PRICE CO FOUNDER SOL PRICE OPENED THE FIRST WAREHOUSE CLUB RIVAL CHAINS SPREAD QUICKLY THROUGH VIRGIN TERRITORY THE CONCEPT WAS SIMPLE MEMBERS MOSTLY SMALL BUSINESSES WOULD PAY ANNUAL DUES OF 25 TO 50 FOR THE PRIVILEGE OF BUYING GOODS IN BULK AT DEEP DISCOUNTS FROM CAVERNOUS LOWOVERHEAD STORES BY 1991 THE INDUSTRY HAD BECAME A BEHEMOTH WITH YEARLY SALES OF 263 BILLION AND A GROWTH RATE OF 36 BUT MOST MARKETS COULD SUPPORT ONLY A SMALL NUMBER OF THE HUGE STORES AND THE MAJOR COMPETITORS CONTINUED TO EXPAND AGGRESSIVELY INEVITABLY THEY BEGAN TO BUTT HEADS IN MAJOR MARKETS IN WAYS THAT SOMETIMES SEEMED TO DEFY LOGIC AFTER PACE OPENED PUERTO RICO'S FIRST WAREHOUSE CLUB IN BAYAMON SAM'S OPENED THE SECOND WAREHOUSE CLUB ON THE ISLAND ALSO IN BAYAMON THERE ARE PLENTY OF OTHER CITIES IN PUERTO RICO NOTES BRUCE QUINNELL CHIEF FINANCIAL OFFICER OF PACE IT WAS NOT A COINCIDENCE MEANWHILE IN TINY EL CENTRO CALIF SAM'S PACE AND COSTCO WHOLESALE CORP ALL OPENED STORES WITHIN MONTHS OF EACH OTHER LAST YEAR IN AN AREA WITH A POPULATION BASE OF 75000 SAYS THOMAS VANDER ARK FORMER VICE PRESIDENT OF STRATEGIC PLANNING AND MARKETING FOR PACE NOBODY FLINCHED LIKEWISE COSTCO INVADED PACE'S TURF IN ANCHORAGE ALASKA BY BUILDING NOT ONE BUT TWO STORES PACE RETALIATED WITH ANOTHER NEW STORE THIS YEAR GIVING THE ALASKAN CITY OF 250000 AS MANY WAREHOUSE STORES AS DENVER A CITY SIX TIMES ITS SIZE HAD IN 1991 IT WAS JUST A BILLIONDOLLAR GAME OF CHICKEN MR VANDER ARK SAYS AND IN RETAILING NOBODY PLAYS THAT GAME BETTER THAN WALMART THE BENTONVILLE ARK COMPANY SIMPLY WON'T YIELD TO COMPETITORS EVEN IF IT MEANS BUILDING SAM'S CLUBS THAT TAKE SALES FROM OTHER SAM'S STORES IN THE AREA RETAIL CONSULTANT PETER MONASH ESTIMATES THAT SAM'S CLUB CANNIBALIZES ITSELF IN 45 OF ITS MARKETS IN QUEST OF A DOMINANT MARKET SHARE PACE USED THE SAME STRATEGY TO DRIVE COSTCO OUT OF TAMPA FLA SAYS DAN DOERFLEIN PACE'S FORMER SENIOR VICE PRESIDENT OF MERCHANDISING BUT IT DIDN'T HAVE THE STAYING POWER TO MAKE THE STRATEGY WORK AGAINST SAM'S IN ATLANTA WE WEREN'T SUCCESSFUL BECAUSE SAM'S CAME IN ANYWAY WITH A LARGE NUMBER OF WAREHOUSES HE RECALLS AND HAD THE DEEP POCKETS AND PATIENCE TO ABSORB LOSSES FOR AS LONG AS NECESSARY AS SOON AS IT ARRIVED SAM'S STARTED SLASHING PRICES PACE CONCLUDED THAT ITS FOE HAD SLICED ITS GROSS PROFIT MARGINS IN THAT MARKET TO BELOW 6 FROM THE MORE USUAL 9 SAYS MR VANDER ARK SAM'S COULD AFFORD IT BECAUSE IT WAS PULLING HUGE AMOUNTS OF MONEY OUT OF DALLAS AND HOUSTON WHERE ITS HOLD ON THE MARKET WAS UNCONTESTED SAM'S CLUBS IN TEXAS HAD HIGHER PRICES WITH SALES CRACKING 100 MILLION A YEAR PER STORE MORE THAN DOUBLE THE NATIONAL AVERAGE FOR SAM'S CLUBS SO PACE DECIDED TO INVADE THOSE MARKETS CONVINCED IT COULD MAKE A PROFIT AND FORCE WALMART TO SLASH MARGINS THERE IT WAS A DEFENSIVE MOVE FOR US SAYS CHARLES STEINBRUECK FORMER PACE CHIEF EXECUTIVE IT WAS ALSO A BIG MISTAKE WE THOUGHT WE'D FOUND SOME GEOGRAPHIC VOIDS IN THE MARKET MR STEINBRUECK SAYS SO WE COULD BE SURE NOT TO LOCATE NEAR A SAM'S BUT SAM'S WHICH ALREADY HAD SIX CLUBS IN THE DALLAS AREA PROMPTLY ADDED SEVERAL MORE AS IT FOUND OUT WHERE PACE WAS BUILDING CLUBS SAM'S EVEN RELOCATED STORES TO GO TOETOTOE WITH THE INVADER LIKEWISE PRICE'S FIRST STORE IN NORTH DALLAS WAS TOUGH TO SPOT FROM THE NEARBY EXPRESSWAY BECAUSE DRIVERS' VIEWS WERE BLOCKED BY A HUGE BILLBOARD DIRECTING THEM TO THE NEARBY AND BRAND NEW SAM'S CLUB OR AS THE BILLBOARD PUT IT IN A POINTED APPEAL TO TEXAS CHAUVINISM THE ORIGINAL TEXAS CLUB THE PRICE CLUB OUTLET LASTED 15 MONTHS CLOSING IN SEPTEMBER MR STEINBRUECK SAYS PACE AT GREAT COST SUCCEEDED IN DRIVING DOWN SAM'S CLUBS' MARGINS BUT DIDN'T CARVE OUT ITS OWN PROFITABLE NICHE MR DOERFLEIN THE FORMER PACE MERCHANDISING EXECUTIVE SAYS THAT NEW PACE MANAGEMENT IN AN EFFORT TO PROTECT ITS RESOURCES FOR OTHER MARKETS CHOSE TO BAIL OUT MR DOERFLEIN BELIEVES THE STORES WOULD HAVE BEEN PROFITABLE IN FOUR OR FIVE YEARS BUT HE CONCEDES THAT SAM'S HAD 200 OTHER LOCATIONS WHERE THEIR MARGINS STAYED UP MARGINS THEY COULD USE TO SUBSIDIZE OTHER LOCATIONS BUT THE BATTLE PROVED COSTLY EVEN TO THE WINNERS TAKE SALES AT STORES OPEN A YEAR OR MORE AT SAM'S CLUB SUCH SALES HAD GROWN 19 IN THE FIRST HALF OF FISCAL 1991 GAINED ONLY 12 IN THE FIRST HALF OF FISCAL 1992 AND THEN DROPPED 2 IN THE FIRST HALF OF FISCAL 1993 AT COSTCO THE COMPARABLESALES GAINS SLID FROM 19 TO 11 TO 4 PRICE WENT FROM A 26 GAIN TO A 36 RISE TO A DROP OF 59 ELSEWHERE THE BATTLE TOOK ON OTHER DIMENSIONS A NEW SAM'S CLUB IN COLORADO SPRINGS COLO FOR EXAMPLE PROMPTLY HIRED AS ITS MANAGER THE ASSISTANT MANAGER OF A NEARBY PACE CLUB HE KNEW ALL THE MEMBERS THE PRICES OUR COST STRUCTURE OUR STRATEGY EVERYTHING SAYS MR VANDER ARK WHO ACKNOWLEDGES THAT IN OTHER CASES PACE DID THE SAME THING SAM'S QUICKLY MADE INROADS ON THE PACE STORE AND LURED AWAY SOME BIGSPENDING BUSINESS MEMBERS HE SAYS THE TO DIE FOR' INFORMATION WAS A COMPETITOR'S MEMBERSHIP LIST MR VANDER ARK ADDS HE MAINTAINS THAT ALL THE CHAINS LOOKED FOR SOURCES FOR THAT INFORMATION HERB ZARKIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WABAN INC THE NATICK MASS OPERATOR OF THE REGIONAL 49UNIT BJ'S WHOLESALE CLUB CHAIN SAYS THAT ON SEVERAL OCCASIONS PEOPLE BJ'S HIRED FROM COMPETITORS OFFERED TO BRING MEMBERSHIP LISTS WITH THEM THOUGH HE SAYS BJ'S HAS ALWAYS RESPONDED THAT WE DON'T WANT IT PEOPLE IN THE INDUSTRY ALSO ACCUSE EACH OTHER OF USING UNDERHANDED TACTICS TO STEAL CUSTOMERS PACE CFO MR QUINNELL SAYS THAT AFTER KMART INITIALLY SOLD 14 PACE WAREHOUSE CLUBS TO WALMART LAST MAY FOR EXAMPLE THERE WAS A RASH OF WALMART MARKETERS TARGETING MEMBERS OF REMAINING PACE CLUBS TELLING THEM THEY OUGHT TO SIGN UP WITH THEM BECAUSE WE'D SOON BE GOING OUT OF BUSINESS BUT AS WITH OTHER GRIPES CHARGES THAT WALMART MISCHARACTERIZED COMPETITOR'S PRICES IN ADS FOR EXAMPLE WHEN WE COMPLAINED IT STOPPED MR QUINNELL SAYS I DON'T THINK IT WAS A CORPORATE PHILOSOPHY SO MUCH AS AGGRESSIVE MANAGERS TRYING TO WIN DON SHINKLE WALMART'S VICE PRESIDENT OF CORPORATE AFFAIRS SAYS ALLEGATIONS THAT WALMART USED SUCH TACTICS ARE PREPOSTEROUS HE ADDS WE DON'T CONDUCT BUSINESS THAT WAY ONE PERSISTENT GRIPE IS THAT SAM'S CLUB ENGAGES IN PREDATORY PRICING ECHOING CHARGES MADE IN A RECENT ARKANSAS STATECOURT SUIT WABAN'S MR ZARKIN ASSERTS THAT SAM'S REGULARLY SELLS ITEMS BELOW ITS COST IN HOPES OF DRIVING YOU OUT OF BUSINESS WALMART IS CURRENTLY APPEALING A JUDGMENT IN THE CASE AWARDING THREE CONWAY ARK PHARMACIES 290407 IN DAMAGES IN WALMART'S SAM'S CLUB IN DELRAND NJ MR ZARKIN CONTENDS THE COMPANY BEGAN SELLING BULK PACKAGES OF CANDY BARS SUCH AS M&MS AND MARS BARS AT WHAT HE BELIEVES WAS A LOSS WE WENT INTO THE SAM'S AND BOUGHT THOUSANDS OF DOLLARS OF CANDY AND SOLD THEM OURSELVES AT THE PRICE WE PAID UNTIL THEY GOT THE MESSAGE HE SAYS WHENEVER SAM'S SELLS BELOW COST NEAR A BJ'S HE SAYS WE SEND PEOPLE OVER TO BUY THEM OUT AND THEN SELL THE MERCHANDISE AT THEIR PRICE A SPOKESMAN SAYS WALMART SOMETIMES SELLS BELOW COST BUT NOT WITH THE INTENT TO DRIVE COMPETITORS OUT OF BUSINESS THE WAREHOUSECLUB FEEDING FRENZY HAS ALSO INCLUDED PLENTY OF REALESTATE INTRIGUE SINCE THE FIRST CLUB INTO A MARKET HAS A COMPETITIVE EDGE WHO WANTS TO SHELL OUT MORE DUES FOR THE PRIVILEGE OF SHOPPING AT ANOTHER STORE WITH THE SAME STUFF GETTING TO A PRIME LOCATION FIRST IS A MATTER OF URGENCY IT WASN'T UNCOMMON FOR SEVERAL OF US TO HELICOPTER IN TO THE SAME INTERSECTION ON THE SAME DAY AND ALL BE COMPETING WITH THE LANDOWNER FOR THE SAME PIECE OF DIRT SAYS MR VANDER ARK IN PARAMUS NJ MR ZARKIN OF BJ'S BID WHAT HE CONSIDERED A MORE THAN FAIR PRICE FOR A SITE THAT HAD SOME TRAFFIC PROBLEMS NO LEFT TURN OUT OF THE PARKING LOT ONLY TO BE OUTBID MIGHTILY BY PACE HE THINKS PACE OFTEN BID TOO MUCH WHILE WALMART AMONG OTHERS HAS BEEN MORE PRUDENT THAT DOESN'T MEAN DOING A DEAL IS EASY IN NEGOTIATIONS FOR SITES WALMART JUST GRINDS YOU AND GRINDS YOU DOWN UNTIL I WAS SURPRISED I WAS STILL MORE THAN THREE FEET TALL SAYS WILLIAM BUETTNER A VICE PRESIDENT FOR DENVERBASED DEVELOPER ANTONOFF MILLER PROPERTIES INC IT HAGGLED WITH WALMART FOR FIVE MONTHS OVER A PIECE OF LAND IN BILLINGS MONT THEY DON'T KNOW THEY'VE GOT THE BEST DEAL THEY CAN GET UNTIL THEY'RE TAPDANCING ON YOUR TOMBSTONE MR BUETTNER SAYS FRUSTRATED MR BUETTNER CAJOLED A BID ON THE SITE OUT OF COSTCO THEN HE SAYS AT A CHARITY EVENT ONE OF ANTONOFF MILLER'S OWNERS CASUALLY MENTIONED THE WALMART TALKS TO A PACE ACQUAINTANCE JUST DAYS BEFORE THE WALMART DEAL WAS TO BE SIGNED PACE RUSHED IN WITH A BETTER OFFER FOR THE DEVELOPMENT RIGHTS WHICH ANTONOFF MILLER ACCEPTED WHILE HE WON'T REVEAL THE AMOUNT HE SAYS PACE PAID HALF AGAIN WHAT THE SITE WOULD HAVE LEASED FOR UNDER NORMAL CIRCUMSTANCES WALMART EXECUTIVES WERE LIVID MR BUETTNER SAYS I'D HAVE THE LIFE EXPECTANCY OF A SECOND LIEUTENANT IN COMBAT IF I WENT INTO BENTONVILLE TODAY AS IT HAPPENED PACE BACKED OUT WHEN IT DISCOVERED COSTCO HAD ACQUIRED A LOT ACROSS THE STREET ON WHICH IT COULD BUILD SOONER BECAUSE THE LOT NEEDED LESS WORK WALMART SOON EXACTED ITS REVENGE AFTER A BUSINESS FRONTING FOR COSTCO SIGNED AN AGREEMENT TO ACQUIRE A LOT IN GREAT FALLS MONT ACCORDING TO A SUIT FILED IN STATE COURT THERE BY COSTCO THE OWNER REPUDIATED THE AGREEMENT REJECTED THE COMPANY'S 10000 CHECK FOR EARNEST MONEY AND CONVEYED THE LOT TO WALMART WALMART BROKE GROUND ON A SAM'S CLUB THE NEXT DAY A DAY THAT DAWNED AT EIGHT DEGREES ABOVE ZERO COSTCO'S SUIT ACCUSES WALMART OF UNLAWFUL INTERFERENCE WITH ITS CONTRACT WALMART DECLINES COMMENT BECAUSE THE MATTER IS IN COURT THE PROPERTY OWNER WILLIAM G SHULL DIDN'T RETURN PHONE CALLS EVENTUALLY PACE FALTERED A BATTLE LIKE THIS CALLS FOR SUBSIDIZING LOW PRICES IN NEW CITIES WITH PROFITS FROM MARKETS WHERE ONE IS DOMINANT BUT PACE HAD FEW SUCH MARKETS THE KMART UNIT ALSO COULDN'T MATCH SAM'S DISTRIBUTION SYSTEM WHICH GETS REORDERED GOODS TO STORES IN AS LITTLE AS 24 HOURS IN MAY KMART SOLD 14 PACE STORES TO WALMART IN JUNE PRICE AND COSTCO SAID THEY WOULD MERGE INTO WHAT'S NOW PRICECOSTCO INC ON NOV 2 WALMART AGREED TO BUY 91 MORE PACE STORES THAT LEAVES KMART WITH 22 PACE STORES WHICH IT PLANS TO CLOSE ON DEC 24 AS THE BATTLEFIELD SMOKE CLEARS WITH SAM'S CLUB AND THE NEW PRICECOSTCO LEFT STANDING ANALYSTS EXPECT SOME EASING OF THE COMPETITION IN MOST CITIES BUT THERE WILL BE NO PEACE IN THE HUGE SOUTHERN CALIFORNIA MARKET IT WAS LONG A PRICE STRONGHOLD BUT WALMART HAS PARACHUTED IN BY BUYING PACE'S 21 STORES THERE NOW BOTH WALMART AND PRICECOSTCO ARE BUILDING SEVERAL MORE BOTH NATIONAL CHAINS ALSO HAVE PLUNGED INTO THE WIDEOPEN MEXICAN MARKET THEY ARE RINGING UP STRONG SALES FROM CLUBS IN MEXICO CITY AND LAYING PLANS TO BLITZ THE REST OF THE COUNTRY PRICECOSTCO MEANWHILE IS EXPERIMENTING WITH MINIWAREHOUSES FOR SMALL MARKETS AND WALMART IS SETTING UP A DATAPROCESSING SYSTEM THAT WILL ALLOW IT TO GRANT CREDIT FOR THE FIRST TIME SEEKING AN EDGE WITH THE RELATIVELY UNTAPPED MARKET OF GOVERNMENT AND BIGCOMPANY PROCUREMENT TODAY PRICECOSTCO HAS 210 WAREHOUSE STORES AND SAM'S HAS 382 MR STEINBRUECK THE FORMER PACE CEO THINKS THE ULTIMATE ADVANTAGE REMAINS WALMART'S SIMPLY BECAUSE IT KEEPS ITS COSTS SO LOW PRICECOSTCO TOOK A MAJOR STEP BY COMBINING HE SAID BUT SAM'S IS STILL A STEP UP 9311180023 931118 BUSINESS BRIEF STAPLES INC PROFIT MORE THAN DOUBLED IN 3RD PERIOD ON SALES GAIN STAPLES INC BOOSTED BY A 25 SALES INCREASE AND AN INVESTMENT GAIN SAID THIRDQUARTER PROFIT MORE THAN DOUBLED THE DISCOUNT OFFICESUPPLY RETAILER BASED IN FRAMINGHAM MASS REPORTED NET INCOME OF 136 MILLION OR 55 CENTS A SHARE IN THE QUARTER ENDED OCT 30 AFTER A 53 MILLION GAIN FROM THE SALE OF ITS INVESTMENT IN EASTMAN OFFICE PRODUCTS IN THE YEARAGO QUARTER NET WAS 52 MILLION OR 23 CENTS A SHARE SALES ROSE TO 301 MILLION FROM 2404 MILLION WHILE SAMESTORE SALES INCREASED 7 FROM A YEAR AGO SAID STAPLES WHICH ADDED 24 NEW STORES IN THE FIRST AND SECOND QUARTERS THOMAS STEMBERG CHAIRMAN AND CHIEF EXECUTIVE SAID OPERATING PROFIT INCREASED DURING THE THIRD QUARTER WHEN STAPLES OPENED 21 STORES RAISING TOTAL STORE COUNT TO 221 9311180022 931118 INTERNATIONAL REORGANIZATION PLAN FOR KWELM INSURERS IS CLEARED BY CREDITORS LONDON CREDITORS APPROVED A REORGANIZATION PLAN FOR LONDON'S KWELM GROUP OF INSURANCE COMPANIES WHOSE FAILURES ARE COSTING US POLICYHOLDERS BILLIONS OF DOLLARS KWELM THE NAME GIVEN TO A GROUP OF FIVE INSURANCE SUBSIDIARIES OF LONDON UNITED INVESTMENTS PLC FAILED IN 1990 LEAVING ONLY 4 BILLION OF ASSETS TO PAY 9 BILLION IN INSURANCE CLAIMS AND DEBTS US POLICYHOLDERS ACCOUNT FOR MORE THAN 80 OF THE 100000 CREDITORS UNDER THE PLAN POLICYHOLDERS COULD EVENTUALLY GET BACK ABOUT 40 CENTS FOR EVERY DOLLAR OWED BUT WILL HAVE TO WAIT AT LEAST 20 YEARS BEFORE RECEIVING THE FINAL PAYMENT THE PLAN NOW GOES BEFORE COURTS IN THE US AND LONDON FOR APPROVAL THE FIRST CHECK COULD BE MAILED TO POLICYHOLDERS IN NINE MONTHS IT'S A BIG LOSS BUT IT COULD HAVE BEEN WORSE SAID CHRIS HUGHES A PARTNER WITH COOPERS & LYBRAND THE COURTAPPOINTED TRUSTEE FOR KWELM ALTHOUGH THE LOSSES ARE HUGE VICTIMS ARE BELIEVED TO HAVE TAKEN RESERVES WHEN IT BECAME APPARENT THAT THEIR INSURANCE CLAIMS WOULD GO UNCOLLECTED ONE POLICYHOLDER WR GRACE & CO SAID THE REORGANIZATION PLAN WILL HAVE NO FINANCIAL IMPACT ON THE COMPANY THE KWELM COMPANIES ARE KINGSCROFT INSURANCE WALBROOK INSURANCE EL PASO INSURANCE LIME STREET INSURANCE AND MUTUAL REINSURANCE THESE COMPANIES WERE BURIED BY SUCCESSFULLY CORNERING THE MARKET IN EVERY AREA YOU WOULD WANT TO AVOID MR HUGHES SAID THE COMPANY FOR INSTANCE HAD LARGE EXPOSURES TO ASBESTOS AND POLLUTION CLAIMS MR HUGHES SAID US POLICYHOLDERS INCLUDE MAJOR CORPORATIONS AS WELL AS SOME ACCOUNTING FIRMS LAW FIRMS ARCHITECTS DOCTORS AND HOSPITALS 9311180021 931118 WHO'S NEWS CYPRUS AMAX'S WARD BECOMES PRESIDENT CHIEF OF AMAX GOLD GOLDEN COLO IN HIS FIRST MAJOR MOVE AS COCHAIRMAN OF CYPRUS AMAX MINERALS CO MILTON H WARD HAS ASSUMED THE POSITION OF PRESIDENT AND CHIEF EXECUTIVE OF THE CONCERN'S 40HELD AMAX GOLD MR WARD 61 YEARS OLD WHO IS ALSO CHAIRMAN OF AMAX GOLD INC SUCCEEDS TIMOTHY HADDON 45 WHO RESIGNED MR HADDON SAID THAT IT WAS HIS DECISION TO LEAVE THE GOLD COMPANY BUT ANALYSTS SAID THEY EXPECTED HE WOULD BE ASKED TO LEAVE AS SOON AS CYPRUS MINERALS CO ACQUIRED AMAX INC THAT TRANSACTION WAS COMPLETED MONDAY AND MR WARD SUCCEEDED FORMER AMAX CHAIRMAN ALLEN BORN 60 AS AMAX GOLD CHAIRMAN MR BORN IS THE OTHER COCHAIRMAN OF CYPRUS AMAX MR HADDON WILL REMAIN ON AMAX GOLD'S BOARD AND WILL SERVE AS A CONSULTANT AMAX GOLD SAID IT WAS NOT UNEXPECTED SAID VIC LAZAROVICI ANALYST AT SMITH BARNEY SHEARSON OVER THE PAST YEAR AND A HALF AMAX GOLD HAS BEEN TROUBLED BY PROBLEMS AT ITS HAYDEN HILL GOLD MINE IN CALIFORNIA WHERE THE GRADE OF THE ORE TURNED OUT TO BE MUCH LESS THAN HAD BEEN PROJECTED IN THE SECOND QUARTER AMAX GOLD TOOK A 641 MILLION WRITEDOWN ON THE MINE IT WASN'T ENTIRELY HIS FAULT BUT IT HAPPENED ON HIS WATCH SAID WARREN MYERS ANALYST AT MERRILL LYNCH THE PROBLEMS AT HAYDEN HILL OCCURRED AT A PARTICULARLY DIFFICULT TIME FOR AMAX GOLD COMING AT THE SAME TIME PRODUCTION WAS DECLINING AT ITS AGING SLEEPER MINE IN NEVADA SAID MR MYERS GERALD MALYS CHIEF FINANCIAL OFFICER AT CYPRUS AMAX SAID AMAX GOLD WILL BE MOVING ITS OFFICES TO CYPRUS'S CORPORATE OFFICE BUILDING SOUTH OF DENVER ONCE THERE MANY AMAX GOLD EMPLOYEES WILL ALSO WORK FOR CYPRUS MR MALYS SAID 9311180020 931118 TECHNOLOGY SPECTRUM INFORMATION SETTLES PATENT SUIT LICENSES TECHNOLOGY MANHASSET NY SPECTRUM INFORMATION TECHNOLOGIES INC THE TINY WIRELESS DATA COMPANY THAT VOWS TO RULE THE AIRWAVES HAS GOTTEN ANOTHER INDUSTRY PLAYER TO LICENSE ITS TECHNOLOGY SPECTRUM SETTLED ITS PATENT SUIT AGAINST MODEM MAKER MICROCOM INC NORWOOD MASS AND THE TWO AGREED TO LICENSE EACH OTHER'S TECHNOLOGY AND COLLABORATE ON WIRELESS DATA PRODUCTS SPECTRUM'S SUIT FILED IN NOVEMBER 1992 IN US DISTRICT COURT IN DALLAS CHARGED MICROCOM'S PRODUCTS INFRINGED SPECTRUM'S PATENTED SOFTWARE PROTOCOL FOR SENDING DATA ERRORFREE OVER CELLULAR NETWORKS MICROCOM COUNTERSUED TO HAVE SPECTRUM'S PATENT DECLARED INVALID THE COURT UPHELD THE VALIDITY OF SPECTRUM'S PATENTS AND UNDER THE SETTLEMENT MICROCOM WILL USE A SPECTRUM PATENT THAT LETS A CELLULAR MODEM BE PROGRAMMED FOR USE WITH A SPECIFIC MANUFACTURER'S CELLULAR PHONE SPECTRUM GOT THE RIGHT TO USE MICROCOM'S PATENTED MNP10 SOFTWARE PROTOCOL FOR SENDING DATA AT HIGH SPEEDS IN DECEMBER 1992 SPECTRUM THREATENED TO TAKE THE INDUSTRY'S BIGGEST PLAYERS TO COURT IF THEY DIDN'T AGREE TO LICENSE TECHNOLOGY THAT SPECTRUM CLAIMED IT HAD PATENTED FIRST SINCE THEN NUMEROUS MANUFACTURERS HAVE SIGNED LICENSES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO AND ROCKWELL INTERNATIONAL CORP SPECTRUM WHICH HAS SUFFERED FROM A 10YEAR RUN OF FINANCIAL PROBLEMS IS NOW HEADED BY FORMER APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY HE HAS MOVED QUICKLY TO CORRECT SPECTRUM'S COURSE BY PURSUING LICENSING DEALS AND ACQUIRING COMPANIES TO HELP SPECTRUM'S PUSH INTO WIRELESS DATA NETWORK DESIGN AND SYSTEMS INTEGRATION SEVERAL SENIOR MANAGERS HAVE SINCE QUIT INCLUDING FORMER CHAIRMAN DANA VERRILL 9311180019 931118 MARKETING BRIEF TRANSWORLD TELECOMMUNICATIONS LITIGATION OVER NOTE SETTLED WITH PHOENIX LEASING INC TRANSWORLD TELECOMMUNICATIONS INC SAID IT SETTLED LITIGATION WITH PHOENIX LEASING INC OVER ITS TAMPABASED CABLETELEVISION SYSTEM TRANSWORLD SAID THE LITIGATION CONCERNED A PROMISSORY NOTE OWED BY ITS TWTVTAMPA BAY UNIT TO PHOENIX LEASING AFTER ITS 1992 PURCHASE OF THE CABLE UNIT TRANSWORLD SAID IT PURCHASED THE NOTE FOR 27 MILLION AS PART OF THE SETTLEMENT TRANSWORLD SAID IT ENTERED INTO AN AGREEMENT TO BORROW 27 MILLION FROM A THIRDPARTY LENDER WHO WILL BECOME A SENIOR PARTNER IN THE CABLE SUBSIDIARY DETAILS OF THE AGREEMENT WEREN'T DISCLOSED 9311180018 931118 THE HOUSE PASSES NAFTA FROM US MEXICAN EXECUTIVES HEAR SOUND OF AN OPENING BELL BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY BUSINESS EXECUTIVES EXPECT MEXICAN INTEREST RATES TO FALL AND ECONOMIC GROWTH TO ACCELERATE FOLLOWING THE US HOUSE OF REPRESENTATIVES VOTE TO APPROVE THE NORTH AMERICAN FREE TRADE AGREEMENT THEY ALSO SAY THAT APPROVAL OF NAFTA WHICH PRESIDENT CARLOS SALINAS DE GORTARI MADE A CENTERPIECE OF HIS POLICY WILL BRING A BURST OF INVESTMENT IN MEXICO EVEN BEFORE THE EFFECTS OF A NEW FOREIGNINVESTMENT LAW THAT IS WIDELY EXPECTED TO BE SENT TO MEXICO'S CONGRESS SOON GOVERNMENT OFFICIALS DESCRIBE THE LAW AS VERY OPEN SERGIO BERMUDEZ CHIEF EXECUTIVE OFFICER OF GRUPO BERMUDEZ WHICH HAS INDUSTRIAL PARKS ALONG THE USMEXICAN BORDER SAYS THAT SOME COMPANIES HAVE BEEN STUDYING THE POSSIBILITY OF A USMEXICAN TRADE AGREEMENT FOR THE PAST TWO YEARS AND THEY'VE BEEN WAITING FOR THIS MR BERMUDEZ SAYS THAT A FEW US COMPANIES SIGNED CONTRACTS THIS WEEK TO DO WORK ALONG THE BORDER AND HE EXPECTS SOME JAPANESE COMPANIES TO FOLLOW SUIT QUICKLY HE ALSO SAYS THAT THERE SHOULD BE ANOTHER BURST OF INVESTMENT IN SIX MONTHS ONCE MORECAUTIOUS COMPANIES HAVE DECIDED MEXICO IS SAFE PEDRO AZCUE SENIOR VICE PRESIDENT WITH REAL ESTATE BROKER LA SALLE PARTNERS IN MEXICO CITY SAYS THAT NUMEROUS CLIENTS HAVE BEEN EXPLORING THE POSSIBILITY OF SETTING UP OFFICES HERE BUT HAVE BEEN NERVOUS HE SAYS ONE BIG US AGRICULTURAL COMPANY FOR INSTANCE COMPLETED ITS INVESTIGATION INTO REAL ESTATE HERE LAST SUMMER BUT PUT ITS PLANS ON HOLD FOR THREE MONTHS AWAITING THE NAFTA VOTE MEXICAN COMPANIES ALSO WILL STEP UP INVESTMENTS UNDER NAFTA BOTH IN THE US AND ELSEWHERE FOR ONE THING THE MEXICAN GOVERNMENT FREED FROM ITS FOCUS ON NAFTA WILL BE ABLE TO GIVE MORE TIME TO THE TRADE AGREEMENTS IT HAS BEEN DABBLING IN WITH SOUTH AMERICAN COUNTRIES AND MEXICAN COMPANIES ARE LIKELY TO INCREASE THEIR INVOLVEMENT THERE ALREADY GRUPO TELEVISA SA THE MEXICAN TV GIANT IS NEGOTIATING JOINT VENTURES IN SOUTH AMERICA GRUPO INDUSTRIAL MASECA SA A BIG CORNFLOUR MILLER IS EXPANDING IN VENEZUELA AEROVIAS DE MEXICO WHICH OPERATES THE AEROMEXICO AIRLINE HAS A STAKE IN A PERUVIAN AIRLINE THE APPROVAL OF NAFTA WILL HOWEVER CREATE ENORMOUS UNCERTAINTY IN MANY PARTS OF THE MEXICAN ECONOMY INCLUDING THOSE EXPECTED TO DO WELL FOR EXAMPLE EDUARDO ROBINSON A BIG POULTRY PRODUCER JOKED SOMETIMES WHEN I WAKE UP IN THE MORNING I FEEL A LITTLE DEPRESSED BUT THEN I THINK THE US FARMER IS AFRAID OF ME' AND I FEEL GREAT BUT MAURICIO USABIAGA A 28YEAROLD VEGETABLE FARMER TAKES A MORE COMMON VIEW US FARMERS HAVE THE FINANCING AND THE TECHNOLOGY IN THE SHORT TERM IT IS GOING TO BE VERY DIFFICULT FOR US MEXICAN INTEREST RATES ARE EXPECTED TO FALL BECAUSE THE GOVERNMENT HAS BEEN ALLOWING THEM TO STAY HIGH TO PREVENT UNCERTAINTY OVER NAFTA FROM SAVAGING THE VALUE OF THE PESO THESE RATES HAVE SLOWED THE ONCEROBUST ECONOMY TO A GROWTH RATE OF ABOUT 1 THIS YEAR BUT YESTERDAY SHORTTERM INTEREST RATES TUMBLED MORE THAN THREE PERCENTAGE POINTS TO LESS THAN 14 IN THE EXPECTATION THAT THE US VOTE WOULD BE FAVORABLE AND ANALYSTS EXPECT THOSE RATES TO FALL TO AROUND 10 NEXT YEAR PRIVATE ANALYSTS SAY IT IS NOW MUCH MORE LIKELY THE GOVERNMENT WILL MEET ITS 1994 FORECAST OF 3 GROWTH THE BRIGHTER OUTLOOK SHOULD HELP MEXICAN STOCKS OPEN HIGHER THIS MORNING BROKERS SAID IN A BRIEF STATEMENT LAST NIGHT PRESIDENT SALINAS CONGRATULATED CONGRESS FOR ITS REJECTION OF PROTECTIONISM AND MEXICANS CELEBRATED BY HONKING THEIR HORNS AS THEY DROVE THROUGH THE CAPITAL PRESIDENT SALINAS ACCOMPANIED BY MOST CABINET MEMBERS DID CAUTION THAT THE TREATY'S EFFECT WILL MAINLY BE FELT OVER THE MEDIUM TERM RATHER THAN IMMEDIATELY ALL THE SAME THE APPROVAL VINDICATES PRESIDENT SALINAS WHO STAKED HIS ADMINISTRATION'S ECONOMIC REFORMS ON A FREE TRADE AGREEMENT WITH THE US AS A RESULT LAST NIGHT'S VOTE SHOULD BOOST THE CHANCES OF THE MAN PRESIDENT SALINAS CHOOSES AS THE RULING PARTY'S CANDIDATE TO SUCCEED HIM IN NEXT YEAR'S PRESIDENTIAL ELECTIONS STILL JORGE CASTANEDA AN AUTHOR ON LEFTIST POLITICS AND A FRIEND OF OPPOSITION PRESIDENTIAL CANDIDATE CUAUHTEMOC CARDENAS SAID HE EXPECTS CONSIDERABLE DISCONTENT TO APPEAR AS MEXICANS GO THROUGH THE WRENCHING ECONOMIC TRANSITION THAT NAFTA WILL ACCELERATE CRAIG TORRES CONTRIBUTED TO THIS ARTICLE 9311180017 931118 WHAT'S NEWS WORLDWIDE SOUTH AFRICAN LEADERS RATIFIED A NEW CONSTITUTION TO END APARTHEID BLACK AND WHITE POLITICAL LEADERS ENDORSED A CONSTITUTION TO END APARTHEID BY GIVING EQUAL RIGHTS TO THE NATION'S BLACK MAJORITY APPLAUSE ERUPTED AS THE DELEGATIONS FROM VARIED POLITICAL GROUPS INCLUDING THE AFRICAN NATIONAL CONGRESS AND THE WHITE DE KLERK GOVERNMENT APPROVED THE CONSTITUTIONAL AGREEMENTS LIKELY TO MAKE NELSON MANDELA THE FIRST BLACK PRESIDENT WE ARE AT THE BEGINNING OF A NEW ERA MANDELA SAID AT THE SIGNING CEREMONY THE WHITEDOMINATED PARLIAMENT IS EXPECTED TO APPROVE THE DOCUMENT NEXT WEEK FORMALLY LAUNCHING SOUTH AFRICA'S TRANSITION TO A DEMOCRACY THE SENATE APPROVED BY A 5643 VOTE A BAN ON THE MANUFACTURE SALE AND POSSESSION OF SEMIAUTOMATIC ASSAULT WEAPONS THE MEASURE AN AMENDMENT TO THE PENDING CRIME BILL WOULD BAN 19 SPECIFIC TYPES OF SEMIAUTOMATIC ASSAULT WEAPONS AND PROHIBIT THE PRODUCTION OF COPYCAT MODELS CHINA APPARENTLY FAILED IN ITS BID TO USE THE ASIAPACIFIC ECONOMIC COOPERATION FORUM TO COMPEL THE US TO GRANT IT UNCONDITIONAL MOSTFAVOREDNATION TRADE STATUS DELEGATES ATTENDING WORKINGLEVEL MEETINGS IN SEATTLE PRIOR TO THE OPENING OF THE CONFERENCE SAID THE MFN ISSUE IS UNLIKELY TO BE RAISED DURING THE MEETING SECRETARY OF STATE CHRISTOPHER WARNED NORTH KOREA THAT IF IT DOESN'T OPEN ITS NUCLEAR SITES TO INSPECTION THE US WILL RECOMMEND THAT THE UN SECURITY COUNCIL CONSIDER OPTIONS OTHER THAN NEGOTIATION SPEAKING IN SEATTLE HE ALSO CALLED ON THE PACIFIC RIM NATIONS TO OPEN THEIR MARKETS WIDER TO US BUSINESS JUDGES FROM 11 NATIONS WERE SWORN IN AT THE INAUGURAL SESSION OF THE UN YUGOSLAVIA WAR CRIMES TRIBUNAL THE FIRST SUCH FORUM SINCE THE NUREMBERG TRIALS AFTER WORLD WAR II THE SESSION AT THE HAGUE OPENED AMID DOUBTS THAT THOSE ACCUSED OF ATROCITIES WOULD EVER APPEAR BEFORE THE TRIBUNAL SERBS HAVE RESISTED THE IDEA OF EXTRADITING SUSPECTS THE GOVERNMENT WITHHELD EVIDENCE THAT COULD HAVE HELPED JOHN DEMJANJUK FIGHT EXTRADITION TO ISRAEL AN APPEALS COURT RULED BOLSTERING HIS BID TO REGAIN US CITIZENSHIP THE COURT IN CINCINNATI OVERTURNED ITS OWN 1986 EXTRADITION ORDER SAYING LAWYERS ACTED WITH RECKLESS DISREGARD IN ARGUING THAT HE WAS NAZI GUARD IVAN THE TERRIBLE AN OREGON WILDLIFE BIOLOGIST WAS NAMED BY CLINTON TO HEAD THE FOREST SERVICE JACK WARD THOMAS WHO HAS WORKED TO SAVE THE NORTHERN SPOTTED OWL WILL TAKE OVER THE AGENCY AT THE BEGINNING OF NEXT MONTH HE IS THE FOREST SERVICE'S SENIOR SCIENTIST AND LEADER OF A PRESIDENTIAL PANEL ON THE NORTHWEST'S OLDGROWTH FORESTS POLITICAL CONSULTANT ROLLINS IS EXPECTED TO TESTIFY PERHAPS AS EARLY AS TODAY BEFORE A FEDERAL GRAND JURY INVESTIGATING CHARGES THAT THE NEW JERSEY GOP PAID BLACK MINISTERS AND DEMOCRATIC WORKERS TO SUPPRESS BLACK VOTES IN THE GOVERNOR'S RACE ROLLINS WAS CAMPAIGN MANAGER FOR GOVELECT WHITMAN THE SENATE PASSED A 261 BILLION FISCAL 1994 DEFENSE AUTHORIZATION BILL THAT CODIFIES A STRICT VERSION OF THE ADMINISTRATION'S DON'T ASK DON'T TELL COMPROMISE ALLOWING HOMOSEXUALS IN THE MILITARY THE BILL ALSO REPEALS A BAN AGAINST WOMEN SERVING ON WARSHIPS LAWMAKERS VOTED 7722 TO SEND THE LEGISLATION TO THE PRESIDENT TO BE SIGNED NIGERIA'S MILITARYINSTALLED LEADER QUIT AND A MILITARY GENERAL WHO TOOK PART IN TWO PREVIOUS COUPS ASSUMED CONTROL OF THE COUNTRY ERNEST SHONEKAN WHO WAS NAMED IN AUGUST TO SUCCEED FORMER DICTATOR IBRAHIM BAGANGIDA STEPPED DOWN IN THE MIDST OF A GENERAL STRIKE HE WAS SUCCEEDED BY SANI ABACHA THE DEFENSE MINISTER ISRAEL'S RABIN DECLARED HE WON'T LET EXTREMISTS DERAIL THE PEACE PROCESS ADDING THAT THE ISRAELIS WILL PURSUE TALKS WITH SYRIA JORDAN AND LEBANON SEPARATELY ISRAEL'S ENERGY AND POLICE MINISTER MET WITH PLO DELEGATES IN CAIRO TO REVIEW SECURITY DETAILS INVOLVING THE IMPENDING WITHDRAWAL OF ISRAELI TROOPS FROM GAZA AND JERICHO A WOMAN MAY ATTEND CLASSES WITH CADETS AT THE CITADEL WHILE HER SUIT CHALLENGING THE MILITARY COLLEGE'S ALLMALE ADMISSIONS POLICY IS HEARD AN APPEALS COURT RULED SHANNON FAULKNER'S LAWSUIT SAYS THE CHARLESTON SC SCHOOL'S ALLMALE CORPS IS UNCONSTITUTIONAL SHE WOULD BE THE FIRST WOMAN EVER TO ATTEND DAY CLASSES THERE 9311180016 931118 LEISURE & ARTS TV GAYRIGHTS BATTLEGROUND EXOTIC EATING AND MORE JFK BY DOROTHY RABINOWITZ COLORADO SPRINGS THE TOWN THAT FUELED A NATIONWIDE BOYCOTT BY HOMOSEXUALS AND SUNDRY REPRESENTATIVES OF THE BEAUTIFUL PEOPLE IS THE SUBJECT OF THIS JOURNAL SEGMENT THIS WAS THE TOWN THAT INITIATED THE AMENDMENT WHICH COLORADO VOTERS PASSED THAT IN EFFECT REFUSED HOMOSEXUALS THE LEGAL STATUS OF A MINORITY GROUP IE ONE WITH THE POWER TO FILE DISCRIMINATION SUITS ITS UNNECESSARILY COLORFUL TITLE NOTWITHSTANDING THIS FILM VENTURE THROUGH THE MOST DELICATE OF POLITICAL THICKETS IS AS CIVILIZED AS IT IS ABSORBING CIVILITY OF COURSE IS NO IMPEDIMENT TO DRAMA AS WITNESS PARTICULARLY MR MOYERS'S INTERVIEW WITH THE SINGULARLY INTERESTING REV BERNIE KUIPER SPIRITUAL LEADER OF THE AMENDMENT SUPPORTERS THIS ONGOING SATURDAY SERIES IS WORTH KEEPING IN MIND WHEN THE DARK COLD OF WINTER SETS IN THEN CAN YOU FIND BURT WOLF IN SOME EXOTIC SETTING IN THE CARIBBEAN OR THE MEDITERRANEAN HOLDING FORTH WITH BRIMMING CONFIDENCE ON SCIENCE ANTHROPOLOGY BIBLICAL LORE ECONOMICS AND IN DUE TIME FOOD THIS CHAPTER OF HIS TRAVELS FINDS HIM LOLLING ABOUT IN THE AZURE HARBORS OF ST CROIX TALKING ABOUT FISH COATED WITH GROUND COFFEE BEANS ORANGEANDLENTIL STEW ETC THE LATTER RECIPE GETS MR WOLF TO THINKING ABOUT LENTILS AND THEN TO REFLECTING ON THE WISDOM OF THE BIBLICAL ESAU WHO SOLD HIS BIRTHRIGHT FOR A MESS OF LENTIL STEW THERE IS ALSO ADVICE ON HOW TO KILL A FRESHCAUGHT FISH FLOPPING AROUND YOUR BOAT DECK TRY VODKA ON THE GILLS SAYS THE STAR AND THE FISH WILL PASS OUT MR WOLF'S TRAVELS ARE THEMSELVES A HEADY BREW BUT THE SORT LIKELY TO KEEP ONE AWAKE NIGEL HAMILTON'S BESTSELLING BOOK WHOSE UNFLATTERING PORTRAIT OF ROSE AND JOSEPH P KENNEDY STIRRED UP A STORM HAS BEEN TURNED INTO A MINISERIES FAR MORE WATCHABLE THAN ONE MIGHT HAVE SUPPOSED ONE REASON IS THE PERFORMANCE BY PATRICK DEMPSEY WHO THOUGH UNABLE TO PULL OFF ANYTHING LIKE A CONVINCING JOHN F KENNEDY IS NONETHELESS ROISTEROUSLY ATTRACTIVE IN HIS ROLE AS AN IMPERSONATOR THE PERIOD FLAVOR AND OVERALL SHEEN OF THIS HANDSOME PRODUCTION ARE NO SMALL ATTRACTIONS EITHER AS FOR TONE IF EFFORT WAS MADE TO SOFTEN THE BOOK'S PORTRAYALS IT ISN'T EVIDENT IN DIANA SCARWID'S SCATHING PORTRAIT OF ROSE KENNEDY OVERALL ITS CHIEF FLAW IS THE DROOLING OBSESSION WITH JFK'S AMOROUS ESCAPADES ESPECIALLY THE NOWFAMOUS ONE WITH THE SUSPECTED NAZI SPY THAT CLUTTERS SO MUCH OF THIS FILM AND COMES VERY NEAR TO SINKING IT NEIL PATRICK HARRIS OF DOOGIE HOWSER FAME STARS IN THIS FACTBASED DRAMA OF FAMILY MURDER MR HARRIS PLAYS ONE OF THREE ADOPTED SONS OF A COUPLE REPRESENTED HERE AS SUCH DETERMINED MODEL PARENTS THAT THE SWEETEST AND MOST PASSIVE OF THEIR BOYS TAKES AN AX TO THEM LINDA KELSEY GIVES A REMARKABLY TERRIFYING PERFORMANCE IN THIS FILM WHICH IS UNLIKE SO MANY OF ITS KIND QUIETLY AND HARROWINGLY PERSUASIVE THIS PRODUCTION CHRONICLES THE ADVENTURES OF A FAMILY OF LITTLE PEOPLE AS CONCEIVED BY NOVELIST MARY NORTON THE INDUSTRIOUS BORROWERS EXIST IN CELLARS AND OTHER HIDDEN PLACES SURVIVING QUITE NICELY IF WITH GREAT SECRECY ON BITS OF FOOD AND DOLLHOUSE FURNITURE CADGED FROM THE HUMANSIZE FOLK UPSTAIRS THE ONLY THING MISSING IS MEMBERSHIP IN A UNIVERSAL HEALTH PLAN THIS SPLENDID AND OCCASIONALLY UNNERVING TALE WHICH IAN HOLM SERVES SO ADMIRABLY IN THE ROLE OF POD HEAD OF THE LITTLE FAMILY IN QUESTION IS THE KIND OF YOUNG PERSONS' FARE WHOSE CHARMS IT TAKES AN ADULT TO APPRECIATE RUSH PAST THE INTRODUCTIONS WHERE FOR REASONS BEST KNOWN TO THEMSELVES THE PRODUCERS HAVE COMEDIAN RICHARD LEWIS LURKING AMERICA'S MOST WANTED PRESENTS A SPECIAL EPISODE ON THREE FELONS WHO MADE A SUCCESSFUL ESCAPE FROM THE FABLED ROCK IN 1960 AND WERE NEVER CAUGHT THE ARTLESS REENACTMENTS ASIDE THERE IS PLENTY OF CURIOUS DATA HERE ON HOW RESOURCEFUL PRISONERS MADE THEIR BREAK BY EMPLOYING A VACUUMCLEANER MOTOR AND A BUNCH OF RUBBER RAINCOATS THEY DON'T MAKE FELONS LIKE THIS ANYMORE 9311180013 931118 SHORT SESSION IS PLANNED FOR AFTER THANKSGIVING NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT WILL END TRADING AT 1 PM ON THE FRIDAY AFTER THANKSGIVING THE ABBREVIATED NOV 26 TRADING SESSION IS DESIGNED TO ACCOMMODATE TRADERS WHO WOULDN'T WANT TO HAVE POSITIONS OUTSTANDING OVER FOUR DAYS LAST YEAR THE BIG BOARD ENDED TRADING AT 2 PM WE WANT TO BE OPEN TO GIVE INVESTORS THE OPPORTUNITY TO PARTICIPATE IN THE MARKET AND AT THE SAME TIME WE RECOGNIZE THE FRIDAY AFTER THANKSGIVING IS GENERALLY A DAY OF LIGHT TRADING ACTIVITY HENCE THE EARLY CLOSE SAID AN EXCHANGE SPOKESMAN THE AMERICAN STOCK EXCHANGE SAID IT WILL ALSO CONCLUDE STOCK TRADING AT 1 PM THAT FRIDAY TRADING IN OPTIONS AND OTHER PRODUCTS LISTED ON THE AMEX WILL FINISH SHORTLY THEREAFTER 9311180012 931118 LAW AGE DISCRIMINATION GUIDELINES ADOPTED BY NEW YORK CITY RESTAURANTS STORES WARNED NOT TO KEEP OUT PATRONS DUE SOLELY TO THEIR YEARS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A NEW YORK CITY AGENCY ISSUED REGULATIONS THAT WOULD BAR STORES RESTAURANTS AND BUSINESSES FROM RESTRICTING ADMISSION SIMPLY BECAUSE PATRONS ARE TOO YOUNG OR TOO OLD THE CITY'S COMMISSION ON HUMAN RIGHTS SAID THAT CHILDREN TEENAGERS OR SENIOR CITIZENS CANNOT BE EXCLUDED FROM PUBLIC PLACES AND PUBLIC SERVICES BECAUSE OF THEIR AGE THE REGULATIONS WHICH GO INTO EFFECT DEC 13 ARE AN EXPANSION OF THE CITY'S HUMAN RIGHTS LAW THAT WAS PASSED IN 1991 A SPOKESMAN FOR THE AGENCY SAID THE GUIDELINES WERE PROMPTED BY INCREASED REPORTS OF TEENAGERS BEING PUT OUT OF DEPARTMENT STORES BECAUSE OF THEIR AGE AND BY DANCE STUDIOS THAT WOULDN'T ALLOW OLDER PARTICIPANTS ALTHOUGH THE AGENCY ADOPTED A POLICY PROHIBITING AGE DISCRIMINATION IN 1991 UNTIL RECENTLY IT HADN'T HELD HEARINGS OR ADOPTED SPECIFIC GUIDELINES ALTHOUGH THE NEW RULES SEEM LIKELY TO CAUSE A STIR AT A NUMBER OF ESTABLISHMENTS THE HEARINGS WERE POORLY ATTENDED THESE NEW RULES ARE INTENDED TO STOP THE DISCRIMINATION THAT STUDENTS EXPERIENCE FROM RESTAURANTS STORES OR BUSINESSES THAT REFUSE THEM ACCESS SIMPLY BASED ON THEIR AGE SAID DENNIS DELEON THE CITY'S HUMAN RIGHTS COMMISSIONER LIKEWISE OLDER PEOPLE CANNOT BE EXCLUDED FROM DANCE CLUBS GYMS BARS OR RESTAURANTS BECAUSE OF THEIR AGE BLANKET RESTRICTIONS BASED ON AGE ARE GENERALLY ILLEGAL IN NEW YORK CITY HE ADDED UNDER THE NEW GUIDELINES RETAIL STORES COULDN'T PUT UP SIGNS REQUIRING YOUNG SHOPPERS TO BE ACCOMPANIED BY ADULTS AND HOSPITALS THAT EXCLUDE CHILDREN FROM VISITING PARENTS WILL HAVE TO AMEND THEIR RULES A NEW YORK UNIVERSITY MEDICAL CENTER SPOKESWOMAN SAID THE HOSPITAL DOES HAVE A RESTRICTION ON CHILDREN AGE 13 AND UNDER VISITING PATIENTS TO PROTECT OTHER PATIENTS AND STAFF BECAUSE CHILDREN GENERALLY HAVE A HIGHER INCIDENCE OF CONTAGIOUS DISEASES SUCH AS CHICKEN POX THE HOSPITAL DOES MAKE EXCEPTIONS ON AN INDIVIDUAL BASIS THE GUIDELINES ALSO AFFECT BARS AND RESTAURANTS THAT RESTRICT ACCESS BASED ON AGE BUT DON'T AFFECT STATE LAWS REGARDING THE SALE OF ALCOHOLIC BEVERAGES TO UNDERAGE PATRONS AT WILDLIFE A POPULAR NEW YORK CITY BAR A SIGN IN THE WINDOW STIPULATES CUSTOMERS MUST BE AT LEAST 23 YEARS OLD ACCORDING TO A MANAGER THE BAR FIRST OPENED WITH THE STANDARD 21YEARSOFAGE LIMIT BUT WE GOT A LOT OF YOUNG COLLEGE KIDS WHO STARTED A LOT OF FIGHTS SAID BEN RODAS A MANAGER AT WILDLIFE WE WANTED TO AVOID THAT MR RODAS SAID HE PRESUMED THAT THE BAR'S OWNERS WOULD REMOVE THE SIGN AND ADHERE TO THE CITY'S RULES TIM ZAGAT WHO PUBLISHES THE ZAGAT RESTAURANT SURVEY SAID THE RULING MADE A CERTAIN AMOUNT OF SENSE BECAUSE RESTAURANTS ARE PUBLIC SPACES BUT HE ALSO QUESTIONED WHAT THE DECISION MIGHT MEAN FOR OTHER RESTAURANT RESTRICTIONS ONE POTENTIAL INTERESTING FALLOUT FROM THE RULE WOULD BE ITS EFFECT ON OTHER RESTAURANT RULES SUCH AS DRESS CODES MR ZAGAT SAID CAN YOU MAKE SOMEONE WEAR A SUIT OR TIE MR ZAGAT A LAWYER WHO HAS REPRESENTED NONPROFIT ORGANIZATIONS IN DISCRIMINATION CASES ALSO WONDERED IF THE NEW RULE COULD AFFECT PARTICULARLY POPULAR RESTAURANTS THAT UTILIZE A VELVET ROPE POLICY WHERE A DOORMAN ARBITRARILY SCREENS PATRONS THE POLICY LIKELY WILL DRAW ATTENTION IN OTHER CITIES WE WOULD CLEARLY LIKE TO HAVE THE ABILITY TO RESPOND TO CUSTOMER PREFERENCES SAYS A SPOKESMAN FOR AMC ENTERTAINMENT INC KANSAS CITY MO WHICH OPERATES 1700 MOVIE SCREENS AT 400 LOCATIONS BUT NONE IN NEW YORK CITY AMC DOESN'T PERMIT CHILDREN UNDER SIX TO ATTEND MOVIES AFTER 6 PM UNLESS THE MOVIE IS SPECIFICALLY AIMED AT FAMILY AUDIENCES A SPOKESMAN SAYS PATRON RESPONSE TO THE RULE HAS BEEN OVERLY POSITIVE 9311180011 931118 INTERNATIONAL US ACTION ON BRITISH AIR USAIR BRINGS UK THREAT LONDON THE UK THREATENED TO CURTAIL LANDING RIGHTS IN LONDON FOR TWO US AIRLINES UNLESS THE US GOVERNMENT EXTENDS ITS APPROVAL OF BRITISH AIRWAYS PLC'S MARKETING ARRANGEMENTS WITH USAIR GROUP INC LAST WEEK THE US GOVERNMENT APPROVED A BRITISH AIRWAYSUSAIR PLAN TO INCREASE THE NUMBER OF SERVICES WITHIN THE US ON WHICH BOTH CARRIERS OFFER THEIR OWN FLIGHT NUMBERS FOR A SINGLE FLIGHT SUCH CODE SHARING AGREEMENTS GIVE THE AIRLINES A MARKETING EDGE OVER RIVAL FLIGHTS BUT THE US GAVE ITS APPROVAL FOR ONLY 60 DAYS RATHER THAN THE STANDARD ONEYEAR PERIOD ACCORDING TO THE UK GOVERNMENT THE FAILURE OF THE US TO GRANT AN IMMEDIATE ONEYEAR APPROVAL VIOLATED A 1991 AIRSERVICES PACT THAT GAVE AMERICAN AIRLINES A UNIT OF AMR CORP AND UAL CORP'S UNITED LANDING RIGHTS AT HEATHROW AIRPORT OUTSIDE LONDON YESTERDAY THE UK GOVERNMENT THREATENED TO CUT ONE FLIGHT A WEEK FROM AMERICAN AIRLINES' LONDONCHICAGO ROUTE AND UNITED'S LONDONWASHINGTON ROUTE THE CURTAILMENTS WOULD TAKE EFFECT AFTER JAN 12 WHEN US APPROVAL OF THE 60DAY AGREEMENT EXPIRES HOWEVER USUK TALKS ON AN AIRTRANSPORT TREATY ARE SET TO RESUME IN EARLY DECEMBER AND US OFFICIALS FULLY EXPECT THE CODESHARING PERMISSION TO BE EXTENDED THEN IF PROGRESS IS MADE IN OTHER AREAS 9311180010 931118 ENTERPRISE GUILTY PLEA SHOWS VULNERABILITY OF SBA'S 8A PROGRAM ATTEMPT TO HELP THE DISADVANTAGED LED TO BENEFITS FOR AGENCY OFFICIAL BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL MERCEDES B SHETTER THREW AWAY A 20YEAR GOVERNMENT CAREER AND PLEADED GUILTY TO SEVERAL FELONIES IN THE PROCESS SHE ALSO SHED NEW LIGHT ON WHAT SOME BELIEVE ARE SERIOUS SHORTCOMINGS IN A MULTIBILLIONDOLLAR FEDERAL ASSISTANCE PROGRAM FOR SMALL BUSINESSES AS AN ASSISTANT DISTRICT DIRECTOR OF THE SMALL BUSINESS ADMINISTRATION'S SAN DIEGO OFFICE MS SHETTER OVERSAW HER OFFICE'S HANDLING OF THE SOCALLED 8A PROGRAM THIS NATIONWIDE INITIATIVE ANNUALLY DIRECTS SOME 4 BILLION TO SMALL BUSINESSES WITH SOCIALLY AND ECONOMICALLY DISADVANTAGED OWNERS MAINLY MINORITY MEMBERS LAST WEEK MS SHETTER PLEADED GUILTY TO CRIMINAL CHARGES OF ACCEPTING GRATUITIES FROM 8A CONTRACTORS IN RETURN FOR HELPING THEM OBTAIN FEDERAL CONTRACTS THE GRATUITIES RANGED FROM USE OF A GASOLINE CREDIT CARD TO AN EXPENSEPAID TRIP TO LAS VEGAS TO A JOB FOR THE SON OF MS SHETTER'S BOYFRIEND MS SHETTER ALSO PLEADED GUILTY TO MAKING FALSE STATEMENTS ON A BANKLOAN APPLICATION SCHEDULED FOR SENTENCING IN JANUARY SHE COULD BE SENT TO PRISON FOR MORE THAN 30 YEARS AND FINED MORE THAN 1 MILLION SHE HAS BEEN SUSPENDED FROM HER JOB PENDING FORMAL DISMISSAL AN SBA OFFICIAL SAYS MS SHETTER IS THE EIGHTH SBA OFFICIAL TO HAVE BEEN CONVICTED OF CRIMINAL WRONGDOING IN THE 8A PROGRAM OVER THE PAST SEVEN YEARS SEVERAL OF THOSE CASES INVOLVED SBA OFFICIALS ACCEPTING OR SOLICITING GRATUITIES FROM 8A CONTRACTORS NO OTHER SBA PROGRAM HAS HAD AS MANY INSTANCES OF CRIMINAL MISCONDUCT OVER THAT PERIOD AGENCY OFFICIALS SAY BECAUSE OF THE WAY THE INITIATIVE IS ADMINISTERED CERTAIN POSITIONS IN THE 8A PROGRAM ARE VULNERABLE TO BEING CORRUPTED SAYS STEPHEN MARICA THE SBA'S ASSISTANT INSPECTOR GENERAL FOR INVESTIGATIONS IN THE PROGRAM A COMPANY APPLIES AND CONVINCES THE SBA THAT IT MEETS THE PROGRAM'S CRITERIA FOR A SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL BUSINESS WITH THE SBA'S HELP THE CONCERN SEEKS OUT SUITABLE GOVERNMENT WORK THE SBA APPROACHES THE FEDERAL AGENCY THAT NEEDS THE WORK DONE AND ARRANGES FOR A CONTRACT TO BE GRANTED TO THE SBA THE AGENCY THEN SUBCONTRACTS THE WORK TO THE 8A COMPANY THE OTHER AGENCIES COOPERATE BECAUSE THEY ARE UNDER MANDATES TO SET ASIDE A PORTION OF THEIR CONTRACTING WORK FOR MINORITYOWNED FIRMS PART OF THE PROBLEM IS THAT LOCAL OFFICIALS SUCH AS MS SHETTER ARE OFTEN ALLOWED TO DIRECT MILLIONS OF DOLLARS OF WORK WITH LITTLE IF ANY REVIEW BY SUPERIORS SAYS JAMES HOOBLER THE SBA'S INSPECTOR GENERAL YOU JUST CAN'T DELEGATE THAT MUCH AUTHORITY AWAY TO ONE PERSON HE SAYS THERE IS JUST TOO MUCH OPPORTUNITY FOR PROBLEMS STARTING IN LATE 1988 DOZENS OF CONTRACTS WENT TO A HANDFUL OF 8A COMPANIES WHOSE OWNERS PROVIDED FAVORS TO MS SHETTER ACCORDING TO HER INDICTMENT FILED IN SAN DIEGO FEDERAL COURT SUCH A CONCENTRATION OF CONTRACTS TO A FEW COMPANIES SHOULD HAVE BEEN A SIGNAL THAT SOMETHING MIGHT BE AMISS MR HOOBLER AND OTHERS SAY ANOTHER POTENTIAL RED FLAG ACCORDING TO INVESTIGATORS MS SHETTER PERSONALLY HANDLED PAPERWORK FROM CERTAIN 8A CONCERNS THAT HER SUBORDINATES NORMALLY WOULD HAVE HANDLED MS SHETTER ALSO TRIED TO DIRECT MORE THAN 40 MILLION IN CONTRACTS TO HER LONGTIME PERSONAL ACCOUNTANT ALBERT BURNS BY CERTIFYING HIM AS ELIGIBLE FOR SUCH WORK AS COMPUTER REPAIR AND MILITARYBASE MAINTENANCE FEDERAL INVESTIGATORS SAY MR BURNS NEVER RECEIVED THESE CONTRACTS BECAUSE THE CRIMINAL PROBE INTERRUPTED THE PROCESS THESE INVESTIGATORS ADD EARLIER THIS YEAR MR BURNS PLEADED GUILTY TO A CRIMINAL MISDEMEANOR CHARGE OF MAKING ILLEGAL PAYMENTS TO MS SHETTER IN THE FORM OF FREE TAX SERVICES MR BURNS DECLINED TO BE INTERVIEWED PRIOR TO HIS FORMAL SENTENCING NEXT MONTH MS SHETTER THROUGH HER ATTORNEY ALSO DECLINED AN INTERVIEW REQUEST THERE HAD BEEN COMPLAINTS AND RUMORS ABOUT MS SHETTER'S CONDUCT FOR YEARS INVESTIGATORS SAY SOME CAME FROM 8A CONTRACTORS WHO WEREN'T IN ON THE PAYOFFS AND COMPLAINED ABOUT UNFAIR TREATMENT THE INVESTIGATORS ADD NONETHELESS MS SHETTER APPARENTLY ALMOST GOT AWAY WITH HER MISDEEDS THOUGH AN SBA INQUIRY HAD BEEN OPENED IN 1989 LITTLE PROGRESS WAS MADE UNTIL TERRI PRICE A SPECIAL AGENT WITH THE SBA INSPECTOR GENERAL'S OFFICE WAS ASSIGNED TO THE CASE IN LATE 1991 IT WAS LARGELY THROUGH HER DOGGED EFFORTS THAT THIS CASE CAME TO FRUITION SAYS PETER LEWIS THE ASSISTANT US ATTORNEY WHO HANDLED THE SHETTER PROSECUTION THE SBA IS TRYING TO ADDRESS CORRUPTION CONCERNS AS IT PLANS YET ANOTHER OVERHAUL OF THE 8A PROGRAM THOUGH THE PROGRAM HAS HELPED HUNDREDS OF MINORITYOWNED BUSINESSES IT HAS ALSO SUFFERED RECURRING PROBLEMS IN ITS HISTORY OF NEARLY 25 YEARS IT HAS UNDERGONE SEVERAL MAJOR FACELIFTS THE LATEST TOOK PLACE ABOUT FIVE YEARS AGO IN RESPONSE TO A PREVIOUS RASH OF CONTRACTING SCANDALS CRITICS SAY SUCH EFFORTS HAVE LEFT MANY OF THE PROGRAM'S PROBLEMS UNSOLVED FOR INSTANCE A RECENT GENERAL ACCOUNTING OFFICE REPORT FOUND THAT A DISPROPORTIONATELY LARGE PERCENTAGE OF CONTRACTS STILL GO TO A SMALL NUMBER OF THE MORE THAN 4000 COMPANIES IN THE 8A PROGRAM MOREOVER MANY 8A CONCERNS STILL FAIL ONCE THEY LEAVE THE PROGRAM AND HAVE TO COMPETE STRICTLY ON THEIR OWN SBA ADMINISTRATOR ERSKINE BOWLES HAS APPOINTED AN AGENCY TASK FORCE TO PRESENT RECOMMENDATIONS FOR OVERHAULING THE 8A PROGRAM MEMBERS OF CONGRESS ARE ALSO PUTTING FORTH PROPOSALS OF THEIR OWN SPURRED BY THE SHETTER CASE SOME OFFICIALS ARE ARGUING THE SBA NEEDS TO SIGNIFICANTLY RESTRUCTURE ITS ROLE IN THE 8A PROGRAM FOR INSTANCE INSPECTOR GENERAL HOOBLER AND OTHERS SAY THE AGENCY SHOULD DROP ITS MIDDLEMAN ROLE AS PRIME CONTRACTOR AND LET 8A CONCERNS AND GOVERNMENT AGENCIES DEAL DIRECTLY SBA OFFICIALS THEN WOULDN'T HAVE THE POWER TO BROKER DEALS THE WAY MS SHETTER COULD MR HOOBLER SAYS 9311180009 931118 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE BELGIAN GOVERNMENT SETTLED ON A THREEYEAR ECONOMIC PLAN STARTING JAN 1 TO CUT THE DEFICIT AND 95 UNEMPLOYMENT AND BOOST COMPETITIVENESS BY RAISING TAXES LOWERING SPENDING AND LIMITING PAY INCREASES TO COVER INFLATION THE PROGRAM REDUCES THE MINIMUM WAGE AND BUSINESS CONTRIBUTIONS FOR YOUTH PROGRAMS AND JOBSHARING ARRANGEMENTS AND EASES SOME LABOR RULES IT CUTS PENSIONS AND OTHER SOCIALSECURITY OUTLAYS OTHER FEATURES INCLUDE A VALUEADDED TAX BOOST TO 205 FROM 195 NEW PROPERTY TAXES AN INCREASE TO 13 FROM 10 IN WITHHOLDING TAXES ON INTEREST INCOME A DECREASE TO 13 FROM 25 IN DIVIDEND WITHHOLDING TAXES ON NEW STOCK ISSUES AS A WAY TO HELP FIRMS RAISE CAPITAL AN INFLATIONADJUSTED 15 LIMIT ON HEALTHCARE SPENDING GROWTH AND INCREASES IN TAXES ON MOTOR FUELS AND TOBACCO THE GOVERNMENT APPROVED THE AUSTERITY PACKAGE AFTER LABOR LEADERS PULLED OUT OF TALKS ON IT THREE WEEKS AGO MOUNTING LABOR UNREST COULD UNDERMINE BELGIUM'S GOALS SUCH AS SLASHING PUBLIC DEBT THAT EXCEEDS 120 OF GROSS NATIONAL PRODUCT THAILAND PURSUING ITS GOAL TO BECOME A REGIONAL FINANCIAL CENTER SOON WILL INVITE MORE FOREIGN BANKS TO APPLY FOR OFFSHORE BANKING LICENSES NOW 47 FOREIGN AND DOMESTIC BANKS ARE LICENSED UNDER THE OFFSHORE PROGRAM BEGUN EARLIER THIS YEAR THAT ALLOWS LENDING TO THAI CLIENTS AND OTHER COUNTRIES IN THE REGION AND 37 OF THOSE BANKS HAVE SET UP OPERATIONS FRANCE'S LOUVRE TODAY INAUGURATES THE AILE RICHELIEU WING IN CELEBRATING THE 200TH BIRTHDAY OF THE VAUNTED PARIS MUSEUM AND ART GALLERY THAT ATTRACTS FIVE MILLION VISITORS A YEAR THE BILLIONDOLLAR RENOVATION OF THE 12THCENTURY ROYAL PALACE CONTINUES THE GRADUAL CONVERSION OF THE SPRAWLING FRENCH CULTURAL FLAGSHIP INCORPORATING THE 19THCENTURY WING WHICH HAD HOUSED THE FINANCE MINISTRY DOUBLES THE LOUVRE'S SIZE TO 645000 SQUARE FEET AND ALLOWS 12000 WORKS TO BE EXHIBITED A 25 INCREASE THE ARCHITECT IM PEI'S DESIGN INCORPORATES GLASSROOFED COURTYARDS TO COMPLEMENT HIS GLASS PYRAMID ENTRANCE WHICH WAS OPENED IN 1989 THE FORMER SOVIET UNION USED 12000 TONS OF GOLD TO BUY FOREIGN GRAIN OVER THE PAST QUARTERCENTURY TO SUPPLEMENT ITS POOR HARVESTS A HISTORIAN AND RUSSIAN PRESIDENTIAL ADVISER CLAIMED CITING PREVIOUSLY SECRET ARCHIVES OF THE DEFUNCT COMMUNIST PARTY'S RULING POLITBURO DMITRY VOLKOGONOV SAID EVEN A SMALL PART OF THE GOLD COULD HAVE BEEN USED TO IMPROVE SOVIET FARM PRODUCTIVITY INSTEAD OF BENEFITING THE WEST SOVIET GRAIN IMPORTS BEGUN AS A TEMPORARY MEASURE IN THE EARLY 1960S WERE CONTINUED BY RUSSIA AFTER THE USSR COLLAPSED IN 1991 RUSSIA A MAJOR GOLD PRODUCER HAD GOLD RESERVES IN MAY TOTALING 3335 METRIC TONS VACANT HOMES AND APARTMENTS IN TAIWAN COULD TOTAL A RECORD 800000 THIS YEAR AS THE ECONOMY SLOWS A CHINA TRUST REAL ESTATE CO SURVEY FOUND THE FIGURE REPRESENTS A JUMP FROM 680000 VACANCIES IN 1990 AND 480000 IN 1980 SUPPLY FAR EXCEEDS DEMAND BECAUSE OF RECENT CONSTRUCTION SURGES IN CITIES THE COMPANY SAID WHILE PRICES STAY HIGH AND WIDELY AFFORDABLE IN TAIPEI A NEW THREEROOM APARTMENT SELLS FOR AN AVERAGE OF 282165 SO FAR THIS YEAR THE HOUSING VACANCY RATE IS 25 IN TAICHUNG 10 IN TAIPEI 18 IN SUBURBAN TAIPEI AND 17 IN KAOHSIUNG PAY INCREASES IN THE THIRD QUARTER IN BRITAIN REMAINED AT THE LOWEST LEVEL SINCE 1977 WHEN THE CONFEDERATION OF BRITISH INDUSTRY STARTED KEEPING THE DATA AND THE EMPLOYER GROUP SAID IT DIDN'T SEE ANY SIGN OF AN UPTURN IN THE MANUFACTURING SECTOR WAGE INCREASES AVERAGED A PRELIMINARY 23 UNCHANGED FROM THE PREVIOUS THREE MONTHS AND DOWN FROM 39 IN THE YEAREARLIER THIRD QUARTER IN THE SERVICE SECTOR PAY BOOSTS NARROWED TO 26 FROM 28 IN THE FIRST AND SECOND QUARTERS AND 43 A YEAR EARLIER IN BOTH SECTORS 20 OF AGREEMENTS INCLUDED PAY FREEZES MANUFACTURING PRODUCTIVITY MEANWHILE INCREASED 39 OUTPACING WAGE GROWTH PRESIDENT BORIS YELTSIN SAID RUSSIA WOULD ADOPT WITHIN A FEW MONTHS A FIVEYEAR PLAN TO CONVERT ARMS FACTORIES TO TURN OUT OTHER PRODUCTS HE TOLD MILITARY LEADERS THAT THE MOVE SHOULDN'T HURT THE COUNTRY'S DEFENSE CAPABILITY MR YELTSIN'S REMARKS IN TULA THE HEART OF RUSSIA'S ARMS INDUSTRY WERE AIMED AT GAINING SUPPORT FROM THE HUGE MILITARYINDUSTRIAL COMPLEX AHEAD OF THE DEC 12 PARLIAMENTARY ELECTIONS THE PRESIDENT ALSO SUPREME COMMANDER OF THE RUSSIAN ARMY SAID THE PLAN TO CONVERT DEFENSE ENTERPRISES WOULD BE WORKED OUT IN COORDINATION WITH THE DEFENSE MINISTRY MR YELTSIN TOLD DEFENSE INDUSTRY OFFICIALS THAT FINANCING OF MILITARY RESEARCH AND DEVELOPMENT PROJECTS WOULD BE DOUBLED AND THAT WEAPONS PLANTS WOULD GET A LARGER SHARE OF MILITARY EXPORT EARNINGS RUSSIAN MILITARY OUTLAYS PLANNED FOR NEXT YEAR TOTAL 5 BILLION ONE IN EIGHT CHILDREN SKIPS SCHOOL IN BRITAIN THE EDUCATION AGENCY SAID BUT POLITICIANS SAID THE DATA LACK CREDIBILITY STARTING JAN 1 VISITORS AT QUEEN ELIZABETH'S WINDSOR CASTLE MUST PAY A 12 ENTRANCE FEE AIMED AT RAISING 70 OF THE 60 MILLION NEEDED FOR REPAIRS AFTER A FIRE RAVAGED THE NORTHEAST WING A YEAR AGO 9311180008 931118 WHO'S NEWS MODINE MANUFACTURING CO MODINE MANUFACTURING CO RACINE WIS DENNIS J KUESTER PRESIDENT OF MARSHALL & ILSLEY CORP WAS NAMED A DIRECTOR OF THIS MAKER OF HEATTRANSFER TECHNOLOGY SERVING THE VEHICULAR INDUSTRIAL COMMERCIAL AND BUILDING MARKETS EXPANDING BOARD MEMBERSHIP TO 12 9311180007 931118 LEISURE & ARTS FILM DOWN AND OUT IN NEW YORK CITY BY JULIE SALAMON USUALLY WHEN HOMELESS PEOPLE ARE MADE INTO FILM HEROES IT'S A SAFE BET THAT BY THE END OF THE FILM THEY WILL BE HOMELESS NO LONGER IN MOVIES SUCH AS DOWN AND OUT IN BEVERLY HILLS AND THE FISHER KING FOR EXAMPLE THE HOMELESS HEROES ARE EVENTUALLY CURED OF THEIR HOMELESSNESS AS THOUGH IT'S A DISEASE TO BE OVERCOME THOUGH NEITHER OF THESE ECCENTRIC INTELLIGENT FILMS COULD BE CALLED A TYPICAL HOLLYWOOD MOVIE THEY BOTH SUCCUMB TO THE DEMANDS OF THE HOLLYWOOD FAIRY TALE IN WHICH LOVE AND MONEY CURE ALMOST ANYTHING NO DOUBT LOVE AND MONEY WOULD CURE HOMELESSNESS IN REAL LIFE AS WELL BUT THEY ARE IN SHORT SUPPLY WHICH IS THE POINT OF THE SAINT OF FORT WASHINGTON THIS STRONG SOBER FILM IS GROUNDED IN REALISM DIRECTOR TIM HUNTER AND HIS CREW HAVE NOT MADE AN ENTERTAINMENT SO MUCH AS SOCIAL COMMENTARY THE MESSAGE OF WHICH IS BLUNTLY SET FORTH IN THE LYRICS OF A SONG CALLED SHAME SUNG BY JULIA FORDHAM NEAR THE END OF THE MOVIE WE SHOULD HANG OUR HEADS IN SHAME/ONLY OURSELVES TO BLAME FORTUNATELY THE FILMMAKERS DON'T RELY ON GUILTPROVOKING SONG LYRICS TO STATE THEIR CAUSE THEY UNDERSTAND THE POWER OF FILM TO PERSONALIZE THE ABSTRACT BY CREATING APPEALING CHARACTERS WHO ARE HOMELESS AND THEN DRAWING THE AUDIENCE INTO THE WORLD THOSE CHARACTERS INHABIT IT'S A TRICKY BUSINESS CREATING THESE APPEALING DOWNANDOUTERS WHILE TRYING TO MAINTAIN A FEELING OF AUTHENTICITY BUT THESE FILMMAKERS WORKING FROM AN ASTUTE AND SENSITIVE SCRIPT BY PLAYWRIGHT LYLE KESSLER HAVE ADMIRABLY AVOIDED THE PITFALLS THEY'VE GIVEN THEIR STREET PEOPLE CREDIBLE BIOGRAPHIES JERRY DANNY GLOVER THE EXPERIENCED PANHANDLER IS A VIETNAM WAR VETERAN WHO LEFT HIS MIDDLECLASS LIFE FOR THE STREETS AFTER A BUSINESS FAILURE HE PLAYS MENTOR TO THE NOVICE MATTHEW MATT DILLON A SCHIZOPHRENIC WHOSE EARLY GIFT FOR PHOTOGRAPHY HAS NOW BECOME PART OF HIS CRAZINESS HE IS CONSTANTLY SNAPPING PICTURES BUT USES NO FILM BOTH ACTORS PLAY THEIR PARTS WITH GREAT EMPATHY AND SKILL BUT THE PICTURE'S REAL FASCINATION LIES IN ITS STUNNING PORTRAYAL OF DAILY LIFE FOR JERRY AND MATTHEW MR HUNTER SHOWED A FEEL FOR THE DARK CORNERS OF REALITY IN RIVER'S EDGE THE 1986 MOVIE ABOUT THE REACTION OF A GROUP OF ALIENATED TEENAGERS TO A FRIEND'S MURDER HERE WITH AN IMPRESSIONISTIC DOCUMENTARY STYLE HE AND HIS CINEMATOGRAPHER FRED ELMES PORTRAY THE LIFE OF THE FILM'S HOMELESS MEN WITH A REMARKABLE SENSE OF AUTHENTICITY WHEN THE CAMERA ENTERS THE FORT WASHINGTON ARMORY A NEW YORK CITY MEN'S SHELTER IT'S DIFFICULT AT FIRST TO FULLY GRASP THE SCENE SET BEFORE YOU THERE ARE ROWS AND ROWS OF COTS HUNDREDS OF MEN AT FIRST THIS VAST PLACE APPEARS TO BE SOMETHING LIKE A HUGE ARMY BARRACKS BUT TOO MANY OF THE MEN HUDDLE IN FEAR OR APATHY ON THEIR COTS TOO MANY SCARYLOOKING MEN STALK THE NARROW AISLES SEARCHING FOR SOMETHING PROBABLY A VICTIM AS THE CAMERA PANS BACK TO REVEAL THE MASS OF COTS AND MEN IT ALSO REVEALS THE FULL OMINOUS FORCE OF THIS PLACE A PRISON WITHOUT THE PROTECTION OF CELLS MESSRS HUNTER AND ELMES VIVIDLY PRESENT THE HAUNTING SHADOWS AND SOUNDS OF THIS CAVERNOUS ROOM THE IMAGE EVOKES WARTIME WHAT OTHER CIRCUMSTANCE WOULD ALLOW SUCH MISERY THE QUESTION LINGERS LONG AFTER THE MOVIE IS OVER IN DANGEROUS GAME HARVEY KEITEL PLAYS A DIRECTOR WHO IS MAKING A MOVIE ABOUT A HUSBAND WHO IS ANGRY AT HIS WIFE BECAUSE SHE HAS FOUND RELIGION AND NO LONGER WANTS TO CONTINUE THE DRUGTAKING AND SEXUAL PROMISCUITY THAT HAS BEEN THE FOUNDATION OF THEIR MARRIAGE JUDGING FROM THE EXTENSIVE FOOTAGE WE SEE OF THIS HISTRIONIC MOVIEWITHINTHEMOVIE MR KEITEL'S CHARACTER EDDIE ISRAEL IS NOT A VERY GOOD DIRECTOR BUT TRITE AS THIS FILM SEEMED TO ME IT RESONATES DEEPLY WITHIN EDDIE HE IS FINALLY SO OVERCOME BY EMOTION THAT HE LEAVES HIS HOLLYWOOD SET AND FLIES EAST TO CONFESS TO HIS WIFE HE'S BEEN UNFAITHFUL NOT ONCE BUT DOZENS OF TIMES I LOVE YOU HE SAYS BUT I JUST HAVE TO GET THIS OFF MY CHEST SHE UNDERSTANDABLY IS UPSET PARTICULARLY SINCE EDDIE HAS CHOSEN THE MORNING OF HER FATHER'S FUNERAL TO LIGHTEN HIS LOAD I THOUGHT YOU HAD A SOUL SHE SHRIEKS YOU'RE NOTHING BUT A HOLLYWOOD PIECE OF CRAP PRESUMABLY EDDIE IS A STANDIN FOR ABEL FERRARA THE DIRECTOR OF DANGEROUS GAME THOUGH IT WOULD PROBABLY BE ELEVATING MR FERRARA'S STANDING IN THE BUSINESS TO REFER TO HIM AS A HOLLYWOOD PIECE OF CRAP MR FERRARA HAS BUILT HIS SMALL BUT STRANGELY ENDURING REPUTATION AMONG THE CULTURAL ELITE WITH A COLLECTION OF CRUDELY PROVOCATIVE PICTURES MOST RECENTLY THE BAD LIEUTENANT HE MAY BE STRIVING TO BECOME A HOLLYWOOD PIECE OF CRAP BUT HE HASN'T MADE IT YET HE WON'T IF HE KEEPS MAKING MOVIES LIKE THIS ONE THIS PICTURE ABOUT THE ANGSTRIDDEN MOVIE DIRECTOR MAY BE CRUDE BUT IT ISN'T AT ALL PROVOCATIVE EVEN ITS STAR AND FINANCIAL BACKER MADONNA IS RELATIVELY SUBDUED PLAYING A MADONNALIKE ACTRESS WHO AMUSES HERSELF BY TELLING DIRTY JOKES IN FANCY RESTAURANTS BUT WHO REALLY IS A SENSITIVE SOUL WHO DOESN'T FOR EXAMPLE LIKE TO BE SEXUALLY ASSAULTED BY HER COSTAR DURING FILMING AND MR FERRARA HAS PLAYED A CRUEL TRICK ON HIS OWN WIFE NANCY FERRARA WHO MAKES HER FILM DEBUT HERE AS THE BELEAGURED MRS ISRAEL NOT ONLY HAS HE GIVEN HER A THANKLESS PART WHICH SHE PLAYS THANKLESSLY BUT HE SEEMS TO HAVE BEEN DETERMINED TO HAVE HER PHOTOGRAPHED IN THE MOST UNFLATTERING WAY POSSIBLE VIDEO TIP POSSIBLY NO FILM HAS BETTER DEALT WITH THE FALSE ROMANCE OF POVERTY THAN SULLIVAN'S TRAVELS PRESTON STURGES'S 1941 COMEDY ABOUT A POPULAR HOLLYWOOD DIRECTOR WHO THINKS THE FILMS HE MAKES ARE TOO TRIVIAL THE DIRECTOR JOEL MCCREA PRETENDS HE'S A TRAMP TO FIND WHAT REAL PEOPLE THINK THEY THINK HIS PICTURES ARE GREAT 9311180006 931118 ABREAST OF THE MARKET PROFITTAKING INFLATION WORRIES SEND INDUSTRIALS 642 POINTS LOWER BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK PROFITTAKING AFTER TUESDAY'S RALLY AND NEW CONCERNS ABOUT INFLATION SENT STOCKS LOWER YESTERDAY BROADBASED INDEXES FELL SOMEWHAT FURTHER THAN THE INDUSTRIAL AVERAGE AND DECLINING ISSUES SWAMPED ADVANCERS BY 1311 TO 780 ON THE NEW YORK STOCK EXCHANGE BUT THE DEEPEST LOSSES WERE ON THE NASDAQ STOCK MARKET WHERE THE NASDAQ COMPOSITE INDEX PLUMMETED 933 OR 121 TO 76236 BIG BOARD VOLUME JUMPED TO AN ACTIVE 3169 MILLION SHARES FROM 3037 MILLION ON TUESDAY TUESDAY'S SHARP RALLY WAS BASED ON EXPECTATIONS THE HOUSE WOULD APPROVE THE NORTH AMERICAN FREE TRADE AGREEMENT LAST NIGHT THOSE GAINS BROUGHT STOCKS TO LEVELS THAT FULLY REFLECTED THE POSITIVE EFFECTS OF NAFTA'S PASSAGE ANALYSTS SAID AND INVESTORS SOUGHT TO LOCK IN SOME OF THEIR GAINS MOST ANALYSTS SAID THEY EXPECT STOCKS TO SLIDE NEAR TERM REGARDLESS OF THE OUTCOME OF THE NAFTA VOTE THE MARKET IS IN A NOWIN SITUATION SAID MICHAEL METZ A MARKET STRATEGIST AT OPPENHEIMER & CO IF NAFTA IS APPROVED IT GOES DOWN QUIETLY IF IT IS REJECTED IT GOES DOWN NOISILY HE SAID THE STANDARD & POOR'S 500 STOCK INDEX LOST 193 OR 041 TO 46481 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 099 OR 038 TO 25681 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX SLIPPED 219 OR 046 TO 47254 SHARP GAINS IN OIL GRAIN AND PRECIOUSMETALS PRICES ALSO RAISED INFLATION FEARS AMONG BOTH STOCK AND BOND INVESTORS STOCK PRICES RETREATED TO THEIR SESSION LOWS AFTER AN EARLY RALLY IN BONDS UNRAVELED THE 30YEAR TREASURY BOND ENDED WITH A LOSS OF ABOUT 1/4 POINT RICHARD SCARLATA A NEWSLETTER EDITOR AT SUTTON FINANCIAL SERVICES IN CHICAGO SAID BUYING TIED TO TOMORROW'S MONTHLY INDEX OPTIONS EXPIRATIONS MIGHT HAVE HELPED PULL STOCKS OFF THEIR MIDAFTERNOON LOWS HE SAID STOCKS HAVE GAINED IN THE WEEK OF NOVEMBER'S EXPIRATIONS IN SIX OF THE PAST SEVEN YEARS THE RALLY IN CRUDE OIL PRICES SENT OILRELATED STOCKS SHARPLY HIGHER CHEVRON JUMPED 3 TO 93 TEXACO 1 1/2 TO 66 5/8 EXXON 1 TO 63 3/4 ATLANTIC RICHFIELD 1 3/4 TO 109 5/8 AMOCO 1 1/2 TO 55 AND HALLIBURTON 2 TO 36 1/4 BAKER HUGHES WAS UP 1 7/8 TO 23 7/8 THE OIL DRILLING EQUIPMENT COMPANY REPORTED EARNINGS OF 18 CENTS A SHARE FOR ITS FOURTH QUARTER UP FROM 15 CENTS A YEAR EARLIER BUT BELOW THE 20CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM OIL PRICES ROSE AFTER REPORTS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS CONSIDERING A PRODUCTION CUT LIGHT SWEET CRUDE FOR DECEMBER DELIVERY CLIMBED ABOVE 17 A BARREL IN NEW YORK FOR THE FIRST TIME SINCE NOV 5 GAINING 27 CENTS TO 1704 PHILIP MORRIS LOST 1 3/8 TO 55 3/4 AFTER MERRILL LYNCH LOWERED ITS INTERMEDIATETERM RATING ON THE STOCK TO BELOW AVERAGE FROM NEUTRAL AMONG OTHER TOBACCO ISSUES AMERICAN BRANDS LOST 7/8 TO 34 1/8 BUT RJR NABISCO WHICH WAS ALSO DOWNGRADED BY MERRILL ENDED UNCHANGED AT 6 1/2 INTERNATIONAL BUSINESS MACHINES SLIPPED 7/8 TO 51 7/8 INVESTORS TOOK PROFITS AFTER THE STOCK RAN UP YESTERDAY MORNING ON NEWS THAT MERRILL LYNCH ANALYST DANIEL MANDRESH HAD RAISED HIS LONGTERM RATING ON THE STOCK TO BUY CIRCUS CIRCUS ADDED 1 5/8 TO 34 1/8 AFTER TUMBLING IN RECENT SESSIONS OFFICIALS SAID THEY COULDN'T EXPLAIN THE RECENT WEAKNESS IN THE STOCK WILLIAM G BENNETT CHAIRMAN OF THE CASINO COMPANY SAID EARNINGS HAVE BEEN STRONG SO FAR THIS MONTH DEAN WITTER REYNOLDS UPGRADED THE STOCK TO BUY HONG KONG TELECOMMUNICATIONS TUMBLED 4 7/8 TO 57 MORGAN STANLEY STRATEGIST BARTON BIGGS LOWERED HIS WEIGHTING OF HONG KONG EQUITIES IN MORGAN'S EMERGINGMARKETS MODEL PORTFOLIO TO 10 FROM 16 PRICES ON THE HONG KONG MARKET TUMBLED 18 HEWLETTPACKARD SKIDDED 3 3/4 TO 73 3/4 THE COMPUTER MAKER REPORTED EARNINGS OF 118 A SHARE FOR ITS FOURTH QUARTER UP FROM EARNINGS FROM OPERATIONS OF 64 CENTS A YEAR AGO BUT BELOW THE 121 MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES NEWBRIDGE NETWORKS PLUMMETED 6 5/8 TO 58 ON THE NASDAQ NATIONAL MARKET DESPITE A SOLID EARNINGS REPORT FROM THE CANADIAN COMPANY LATE TUESDAY ALTHOUGH THE PROFIT MATCHED ANALYSTS' EXPECTATIONS INVESTORS WERE SAID TO BE WORRIED THAT NEWBRIDGE'S EARNINGS MOMENTUM WAS SLOWING OTHER HIGHFLYING TELECOMMUNICATIONS STOCKS ALSO TOOK IT ON THE CHIN NEXTEL COMMUNICATIONS FELL 2 7/8 TO 38 5/8 AND DSC COMMUNICATIONS DROPPED 3 TO 62 BOTH ON NASDAQ MARVEL ENTERTAINMENT LOST 4 1/8 TO 29 1/4 A MOVE THE COMIC BOOK CONCERN COULDN'T EXPLAIN IT SAID 1993 EARNINGS SHOULD MEET ANALYSTS' EXPECTATIONS BOEING JUMPED 3 1/8 TO 40 3/4 AFTER THE MARKET CLOSED THE COMPANY SAID IT RECEIVED A 25 BILLION AIRCRAFT ORDER FROM SOUTHWEST AIRLINES SOUTHWEST SHARES EASED 3/8 TO 33 1/2 GENERAL MOTORS CLASS E STOCK CONTINUED TO SLIDE LOSING 1 1/4 TO 27 3/4 AFTER DROPPING 2 ON TUESDAY ON NEWS THAT GM HOPES TO CONTRIBUTE ABOUT 38 OF THE CLASS E ISSUE TO A COMPANY PENSION PLAN THE CLASS E STOCK REPRESENTS THE OPERATIONS OF ITS ELECTRONIC DATA SYSTEMS UNIT GM COMMON ADDED 1 TO 53 3/4 QUALCOMM LOST 3 1/2 TO 62 1/2 ON NASDAQ FOLLOWING NEWS THAT MCI COMMUNICATIONS WILL WORK ON DEVELOPMENT OF A STANDARD FOR WIRELESS PERSONAL COMMUNICATIONS SERVICES THAT STANDARD WILL COMPETE AGAINST ONE DEVELOPED BY QUALCOMM MCI LOST 7/8 TO 24 7/8 ON NASDAQ 9311180005 931118 PEPPERAND SALT I'VE ALREADY MADE UP MY MIND TO PUT ANOTHER AD EARTHQUAKE ALERT FAULTS ALARM 9311180004 931118 WHO'S NEWS AIR FRANCE SHIFTS CHIEF OF ITS MERIDIEN UNIT TO EMBATTLED CARRIER SPECIAL TO THE WALL STREET JOURNAL PARIS THE MANAGEMENT RESHUFFLE AT UNPROFITABLE AIR FRANCE CONTINUED YESTERDAY WITH THE APPOINTMENT OF RODOLPHE FRANTZ AS PRESIDENT MR FRANTZ WILL SUCCEED JEANDIDIER BLANCHET WHO HAS BEEN OFFERED MR FRANTZ'S PREVIOUS JOB AS HEAD OF MERIDIEN AIR FRANCE'S LUXURY HOTEL CHAIN IF MR BLANCHET ACCEPTS THE POST HE WOULD BE CHARGED WITH FINDING A BUYER FOR MERIDIEN MR FRANTZ WILL REPORT TO COMPANY CHAIRMAN CHRISTIAN BLANC APPOINTED IN LATE OCTOBER AFTER THE RESIGNATION OF BERNARD ATTALI WHO DECIDED TO LEAVE WHEN DEBILITATING STRIKES BY AIR FRANCE WORKERS PROMPTED THE GOVERNMENT TO SUSPEND HIS RESTRUCTURING PLAN MR FRANTZ BEGAN HIS CAREER AT AIR FRANCE IN 1968 HE MADE HIS MARK AT MERIDIEN THE MOST PROFITABLE UNIT OF THE GROUP AIR FRANCE IS EXPECTED TO POST LOSSES OF MORE THAN 55 BILLION FRANCS 9314 MILLION THIS YEAR MR ATTALI HAD BEGUN AN AUSTERITY PLAN THAT WOULD HAVE INCLUDED THE ELIMINATION OF 4000 JOBS BY THE END OF NEXT YEAR THIS WOULD HAVE FOLLOWED 5000 JOB CUTS IN THE PAST THREE YEARS HOWEVER THE MOVE SPARKED CIVIL DISOBEDIENCE BY AIR FRANCE WORKERS AT THE TWO PARIS AIRPORTS DISRUPTING AIR TRAFFIC AND FORCING THE GOVERNMENT TO CAPITULATE 9311180002 931118 QVC MAY IMPROVE TERMS OF ITS BID FOR PARAMOUNT BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK QVC NETWORK INC IS CONSIDERING IMPROVING THE TERMS OF ITS 106 BILLION OFFER TO ACQUIRE PARAMOUNT COMMUNICATIONS INC IN A POSSIBLE EFFORT TO DISSUADE SHAREHOLDERS FROM QUICKLY TENDERING STOCK TO RIVAL BIDDER VIACOM INC QVC MAY BOOST THE PERCENTAGE OF CASH IN ITS OFFER WITHOUT CHANGING THE PERSHARE CASH PRICE TAG ACCORDING TO PEOPLE FAMILIAR WITH THE HOMESHOPPING CONCERN'S PLANS ALTHOUGH QVC IS OPTIMISTIC THAT A DELAWARE COURT WILL REMOVE OBSTACLES TO ITS BID SOME TRADERS ARE CONCERNED THAT MANY INSTITUTIONAL INVESTORS MIGHT DECIDE AS EARLY AS TODAY WHETHER TO ACCEPT VIACOM'S LOWER OFFER OF 95 BILLION WHICH HAS THE ENDORSEMENT OF THE PARAMOUNT BOARD WHILE QVC'S 8842ASHARE OFFER EXCEEDS VIACOM'S BID OF 7922 A SHARE VIACOM'S OFFER EXPIRES FIRST AT MIDNIGHT MONDAY BECAUSE BOTH BIDS ARE FOR 51 CASH AND 49 SECURITIES CARRYING A LOWER VALUE MANY INVESTORS MAY DECIDE TO TENDER THEIR SHARES TO VIACOM TO AVOID THE RISK OF MISSING OUT ON THEIR ALLOCATION OF THE CASH PORTION IF THE CABLETELEVISION COMPANY IS ABLE TO COMPLETE THE ACQUISITION STARTING TOMORROW EVERY INSTITUTION IN NORTH AMERICA WILL BEGIN GOING INTO THE VIACOM POOL SAID ONE TRADER AND THEY DON'T HAVE THE WHEREWITHAL TO JUMP IN AND JUMP OUT OF THESE POOLS THEY'RE NOT AS EQUIPPED AS TAKEOVER TRADERS WHO FOLLOW DEVELOPMENTS MINUTE BY MINUTE REFLECTING THE FEAR THAT VIACOM MAY BE ABLE TO COMPLETE ITS BID WITHOUT SOME COURT INTERVENTION PARAMOUNT STOCK FELL 875 CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TO 7750 FAR BELOW THE VALUE OF THE QVC OFFER THIS TRADER PREDICTED THAT QVC MIGHT DO SOMETHING PREEMPTIVE TO CUT SHORT ANY STAMPEDE BEFORE QVC'S OFFER EXPIRES QVC'S CURRENT BID EXPIRES NOV 26 ANY CHANGE WOULD DELAY THAT EXPIRATION BECAUSE BIDS MUST BE KEPT OPEN FOR 10 BUSINESS DAYS AFTER ANY CHANGE BUT A CHANGE THAT FORCED VIACOM TO RAISE ITS OWN BID WOULD ELIMINATE VIACOM'S CURRENT FOURDAY TIMING ADVANTAGE QVC IS CURRENTLY PROPOSING TO PAY 90 A SHARE FOR 51 OF PARAMOUNT AN ENTERTAINMENT AND PUBLISHING CONCERN TO IMPROVE THAT FIRST STEP QVC CHAIRMAN BARRY DILLER MIGHT OFFER THE SAME AMOUNT OF CASH FOR 60 OF THE SHARES FOR EXAMPLE ACCORDING TO PEOPLE FAMILIAR WITH QVC'S PLANS ONE PERSON CLOSE TO QVC SAID INCREASING THE CASH PORTION HAS ALWAYS BEEN A POSSIBILITY FOR QVC BUT AGAIN IT DEPENDS ON WHERE YOU ARE WITH THE COURT AND IT DEPENDS ON WHAT VIACOM CHAIRMAN SUMNER REDSTONE DOES A DELAWARE CHANCERY COURT JUDGE IS EXPECTED TO RULE BY MONDAY ON QVC'S LEGAL CHALLENGE TO ANTITAKEOVER PROVISIONS IN PARAMOUNT'S AGREEMENT WITH VIACOM IT WAS UNCLEAR WHETHER QVC WOULD ATTEMPT TO ACT BEFORE THE COURT RULING QVC SHARES DROPPED 1375 TO CLOSE AT 4950 YESTERDAY IN NASDAQ STOCK MARKET TRADING AS TRADERS SPECULATED THAT QVC MIGHT SWEETEN ITS OFFER VIACOM CLASS B SHARES ROSE 75 CENTS TO 44125 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE WALL STREET TRADERS SPECULATED THAT THE DELAWARE COURT MIGHT GRANT QVC'S REQUEST TO REMOVE PARAMOUNT'S POISON PILL QVC IS ASKING FOR THE REMOVAL OF THE PILL WHICH MAKES IT PROHIBITIVELY EXPENSIVE FOR A RIVAL BIDDER TO ACQUIRE PARAMOUNT QVC IS ALSO ASKING THE COURT TO NULLIFY LOCKUP AND BREAKUP PROVISIONS THAT WOULD FORCE QVC TO PAY VIACOM 600 MILLION ON TOP OF THE PURCHASE PRICE FOR PARAMOUNT BUT TRADERS SAID QVC IS LIKELY TO GO AHEAD WITH ITS IMPROVED OFFER IF IT CAN JUST GET THE PILL REMOVED RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9311180001 931118 LETTERS TO THE EDITOR CARING CONSERVATIVES OFFER SOLUTIONS BRAVO FOR REMINDING US OF THE DEVASTATING HUMAN TOLL THAT VIOLENT CRIME IS EXACTING ON AMERICAN SOCIETY CAPITAL CARNAGE CAPITAL JOURNAL COLUMN OCT 13 WE AND FRIENDS OF OURS HAVE HAD TO ABANDON OAKLAND CALIF FOR ITS EASTERN SUBURBS PRECISELY FOR FEAR THAT OUR CHILDREN WOULD LITERALLY RISK DEATH TO SAY NOTHING OF A SUBSTANDARD EDUCATION IN THE OAKLAND PUBLIC SCHOOLS BUT SHAME ON YOU FOR BLAMING AMERICA'S APATHY TOWARD INNERCITY VIOLENCE ON RACISM IT IS SURELY TRUE THAT SUCH VIOLENCE IN A WHITE NEIGHBORHOOD WOULD ELICIT A SWIFT AND SURE RESPONSE BUT THAT IS BECAUSE MORE AFFLUENT NEIGHBORHOODS HAVE GREATER POLITICAL CLOUT THROUGH HIGHER VOTER TURNOUT AND HIGHER SCOPE FOR POLITICAL CONTRIBUTIONS APATHY TOWARD THE INNER CITY IS A RESULT OF COMPASSION FATIGUE AFTER DECADES OF FAILED SOCIAL ENGINEERING POLICIES AND NONSTOP DEMANDS FOR MONEY AS IF MONEY WERE THE SOLE MEANS AND HOPE FOR SOLVING URBAN PROBLEMS YOU SAY THERE IS NO LONGER ANY REAL DEBATE ABOUT THE BREAKDOWN OF THE FAMILY AND THE POISONOUS EFFECT OF ILLICIT DRUGS AS THE CAUSES OF URBAN VIOLENCE BUT THIS CONCLUSION HAS BEEN ACCEPTED AS A CONSENSUS VIEW ONLY WITHIN THE PAST TWO OR THREE YEARS SHAME AGAIN FOR BRANDING CONSERVATIVES AS EQUALLY CULPABLE FOR THE CURRENT CRISIS WHO HAS BEEN CONSISTENTLY CALLING FOR AN EMPHASIS ON FAMILY VALUES IN THIS COUNTRY TO A CHORUS OF CATCALLS FROM THE LEFT WHEN HAVE CONSERVATIVE SOLUTIONS USING MARKETBASED INCENTIVES TOWARD EDUCATION EMPLOYMENT AND OWNERSHIP BEEN TRIED ON A WIDE SCALE CONSERVATIVES DON'T LOOK UPON BURNEDOUT URBAN NEIGHBORHOODS WITH GLEE CONGRATULATING THEMSELVES ON HOW WELL THEY MUST BE DOING BY DEPRIVING THE SLUMDWELLERS OF WEALTH WEALTHCREATION IS NOT A ZEROSUM GAME CONSERVATIVES WANT TO SEE POOR PEOPLE MOVE UP THE ECONOMIC SCALE IF FOR NO OTHER REASON THAN TO CONVERT THEM FROM SUBSIDY ABSORBERS TO TAXPAYING CUSTOMERS OF AMERICAN BUSINESSES WHICH LIBERALS BELIEVE ARE ALL OWNED BY CONSERVATIVES LIBERALS ON THE OTHER HAND VIEW THE POOR AS UNABLE TO MAKE INTELLIGENT CHOICES IN THEIR OWN LIVES A VIEW I MAINTAIN TO BE RACIST AND ELITIST THEY HELP KEEP THE URBAN POPULATION IN POVERTY BY TELLING THEM THEIR PLIGHT IS EXTERNALLY IMPOSED BY RACISM AND ECONOMIC EXPLOITATION RATHER THAN URGING THEM TO CHANGE THEIR OWN BEHAVIOR AND SOCIAL STRUCTURE JUST AS HOW DARE YOU QUESTION MY PATRIOTISM BECAME A RALLYING CRY FOR LIBERALS OVER THE PAST 25 YEARS HOW DARE YOU QUESTION MY COMPASSION MUST BECOME A RALLYING CRY FOR CONSERVATIVES YOUR CAPITAL'S ELITE MANAGE TO MISS THE CARNAGE WITHIN DOES A GOOD JOB DESCRIBING THE VIOLENCE IN THE NATION'S CAPITAL YOU GO ASTRAY HOWEVER WHEN YOU CHARACTERIZE CONSERVATIVES AS THOSE WHO WISH THE PROBLEMS AWAY IN THE SAME ARTICLE YOU IRONICALLY OUTLINE LONGTERM CONSERVATIVE SOLUTIONS SUCH AS WELFARE REFORM INDIVIDUAL RESPONSIBILITY AND SCHOOL CHOICE AS YOU NOTE THE EPIDEMIC OF VIOLENCE IN THIS COUNTRY IS THE RESULT OF A VARIETY OF HISTORICAL FORCES PROMINENT AMONG THESE IS MISGUIDED LIBERAL COMPASSION RESULTING IN A PATERNALISTIC SOCIAL SYSTEM THIS STATIST PATERNALISM HAS SUCCEEDED IN BREAKING DOWN THE FAMILY STRUCTURE TAKING AWAY INDIVIDUAL RESPONSIBILITY AND ACCOUNTABILITY JUST AS A COMPASSIONATE PARENT WORKS TO PASS ON STRONG VALUES TO HIS CHILDREN THE COMPASSIONATE CONSERVATIVE RECOGNIZES THE DIGNITY OF THE INDIVIDUAL OVER THE FORCES OF THE STATE TO STATE THAT CONSERVATIVES ARE WISHING AWAY THESE SERIOUS AND TRAGIC PROBLEMS IS IGNORING REALITY CONSERVATIVES NOT ONLY CARE AS MUCH AS LIBERALS WE OFFER CREATIVE COHERENT COMMONSENSE SOLUTIONS TO THE MAJOR ISSUES OF OUR TIMES 9311180101 931020 REVIEW & OUTLOOK EDITORIAL SPECIAL ED'S SPECIAL COSTS OUR SEARCH FOR WHY GOVERNMENT IS UNABLE TO PROVIDE TRADITIONAL SERVICES TO THE GENERAL PUBLIC WITHOUT CONTINUAL TAX INCREASES HAS LED TO A RECURRING EXPLANATION INTEREST GROUPS HAVE MANAGED TO GET THEIR PARTICULAR REQUESTS FILLED ON THE GROUP DIME THE CASE OF SPECIAL EDUCATION A PRODUCT OF THE BEST OF INTENTIONS IS ILLUSTRATIVE BECAUSE OF A SERIES OF LEGISLATIVE ACTS AND COURT DECISIONS BEGINNING ABOUT 25 YEARS AGO PLUS PERSISTENT LOBBYING BY PARENTS AND PROFESSIONALS WHO HAVE A DIRECT STAKE IN THE YOUNGSTERS INVOLVED PROGRAMS TO SERVE DISABLED CHILDREN HAVE GROWN AND INTENSIFIED THROUGHOUT THE US DISABILITY MUST BE UNDERSTOOD BROADLY SPECIAL ED IS NOT JUST FOR THOSE WITH OBVIOUS IMPAIRMENTS OR EVEN MENTAL RETARDATION IT HAS BEEN INTERPRETED TO COVER MILLIONS OF KIDS WHO HAVE EMOTIONAL PROBLEMS OR OTHERWISE ARE CONSIDERED HANDICAPPED IN LEARNING THIS HAS AMOUNTED TO ABOUT 10 OF THE SCHOOLAGE POPULATION SOME PREVALENCE ESTIMATES FOR WHAT ARE CALLED EXCEPTIONAL STUDENTS PUT THE NUMBER AS HIGH AS 17 AND AN OFFICIAL OF THE US EDUCATION DEPARTMENT IN 1986 OFFERED THAT 25 TO 35 OF THE CLASSROOM POPULATION NEEDS SPECIAL ATTENTION THESE NUMBERS MAY BE INFLATED BY INCLUSION OF HIGHIQ GIFTED CHILDREN FEDERAL LAW NOW REQUIRES THAT ALL BETWEEN THE AGES OF TWO AND 21 BE PROVIDED FREE INSTRUCTION APPROPRIATE TO THEIR REQUIREMENTS THIS EXPANSIVE RANGE HAS LED TO AN EMPHASIS ON EARLY INTERVENTION PROGRAMS IN RECENT YEARS BY 1989 THOSE SPECIALED EFFORTS EVEN REACHED 34412 TODDLERS THROUGH AGE TWO STAFFING AND FACILITY REQUIREMENTS UNDER LAW MEAN THAT THE COST OF PROVIDING THIS ATTENTION IS MORE THAN DOUBLE THE PERPUPIL EXPENDITURES FOR WHAT AT THE RISK OF POLITICAL INCORRECTNESS WE WILL CALL NORMAL CHILDREN IN CALIFORNIA IN 199192 FOR EXAMPLE THE SPECIALED TAB RAN TO 26 BILLION THAT AMOUNT HAPPENS TO BE THE TOTAL DIVERTED FROM LOCAL GOVERNMENT TO THE CLASSROOM AT GREAT POLITICAL DISTRESS THIS SUMMER THE MOST COMMON SPECIALED CATEGORY IS THE YOUNGSTER SIMPLY FOUND TO HAVE A LEARNING DISABILITY IN LAY TERMS THIS DESCRIPTION AT TIMES COULD FIT NEARLY ANYONE AND IN FACT IN 1986 THE NUMBERS QUALIFYING UNDER IT VARIED FROM 3 OF ALL STUDENTS IN INDIANA TO ALMOST 9 IN RHODE ISLAND IN AN AGE OF THE THERAPEUTIC STATE IT IS HARD TO KNOW WHERE COMPENSATORY PROGRAMS EVER END THOUGH SPECIALED ENROLLMENTS HAVE STABILIZED AFTER A RAPID INITIAL RISE AT THE OUTSET OF THE CURRENT ERA ABOUT 90 OF THOSE INVOLVED ARE THOUGHT TO HAVE ONLY MILD DISABILITIES BUT ONCE A CHILD HAS QUALIFIED UNDER THE FORMAL PROCEDURES THE LOCAL SCHOOL DISTRICT IS OBLIGATED TO USE WHATEVER MEANS NECESSARY TO MEET HIS NEEDS TWOTHIRDS ARE MALE IN A FEW EXTREME EXAMPLES A YOUTH HAS BEEN PLACED IN A FARAWAY PROGRAM AND NOT ONLY HIS BUT A PARENT'S TRAVEL AND HOUSING COSTS HAVE BEEN PICKED UP MORE OFTEN THE GREAT EXPENSE COMES IN ACCOMMODATING THE STUDENT IN A MAINSTREAM INSTRUCTIONAL SETTING OR AS THE CRITICAL PUBLIC LAW 94142 PUTS IT THE LEAST RESTRICTIVE ENVIRONMENT NO ONE WOULD MINIMIZE THE PAIN AND ANXIETY OF RAISING A SPECIAL CHILD OR WANT TO RETURN TO THE DAYS WHEN SUCH YOUNGSTERS WERE ISOLATED AND LEFT TO WASTE MENTALLY AND SOCIALLY THAT IS WHY SOCIETY HAS SO AMBITIOUSLY TRIED TO MAKE THEIR LIVES BETTER THE SAME PHILOSOPHY OF SHARED BURDEN THAT HAS APPLIED TO SCHOOLING IN GENERAL IS AT WORK IN THE FUNDING OF SPECIAL ED EVERYONE GAINS WHEN LIVES ARE MADE WHOLE AND YES A LEARNINGIMPAIRED CHILD COULD BE BORN TO ANYONE BUT AT THE LEVEL OF EXPENDITURE AND FREQUENCY OF DEMAND THAT THESE PROGRAMS HAVE REACHED SOMETHING HAS GOT TO GIVE ONE OBVIOUS STEP IS A MEANS TEST SO THAT AFFLUENT PARENTS COVER A GREATER SHARE OF THE COST THAT WOULD HELP SOME BUT THE FACT IS THAT A DISPROPORTIONATE SHARE OF THOSE ELIGIBLE FOR SPECIALED COME FROM LOWINCOME OR BROKEN HOMES THAT MEANS CONTAINMENT OF COSTS WILL HAVE TO BE FOUND IF THESE PROGRAMS AREN'T TO EAT UP RESOURCES DUE THE CLASSROOM MAJORITY JANET BEALES OF THE REASON FOUNDATION HAS COMPLETED A STUDY OF CALIFORNIA'S AND ESPECIALLY THE LOS ANGELES SCHOOL DISTRICT'S SPECIALED EXPENDITURES SHE CONCLUDED THAT DEREGULATING THE FIELD SO AS TO ENCOURAGE LOCAL INNOVATION AND MORE FLEXIBLE USE OF PERSONNEL WOULD NOT ONLY SAVE MONEY BUT ALLOW FOR IMPROVED TEACHING ONE PROBLEM GUESS THE REACTION OF THE UNIONIZED SCHOOLING ESTABLISHMENT TO SUCH IDEAS AS WITH SO MANY BUDGETARY AREAS REFORM REQUIRES POLITICIANS INCLUDING THOSE LIBERALS WITH ENOUGH HARD SENSE TO REALIZE WHERE GENEROSITY HAS BECOME SKEWED TO SUBORDINATE INTEREST GROUPS TO THE COMMONWEAL ALTERNATIVELY IN MATTERS OF SCHOOLING VOTERS CAN INSIST ON PARENTAL VOUCHERS THAT WOULD APPORTION CHOICE AND POWER MORE FAIRLY TO INDIVIDUAL FAMILIES THEN EVERYONE CAN HAVE A SHOT AT A SPECIAL EDUCATION SEE RELATED LETTERS LETTERS TO THE EDITOR WILLOWBROOK IMAGES VALIDATE SPECIAL ED WSJ NOV 18 1993 9310200101 YY93 MM11 9311180088 931026 TRUE BELIEVER HARDER LINE PREVAILS AS NEAL KNOX GAINS CONTROL OVER NRA HIS ZEALOTRY EVEN DISMAYS SOME SHOOTERS BUT VIEWS ARE SHAPING GUN DEBATE ARM SOMALI MOTHERS HE SAYS BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL ROCKVILLE MD CRITICS OF THE NATIONAL RIFLE ASSOCIATION OFTEN WONDER WHY IT OPPOSES SUCH SEEMINGLY MODERATE GUN LAWS AS THE BRADY BILL WHAT THEY OVERLOOK IS THE PASSION THAT INFUSES THE PROGUN SIDE OF THE DEBATE SPECIFICALLY THE THING THAT DRIVES NEAL KNOX THE MAN SIPPING COFFEE AT HIS COUNTRY CLUB HERE HIS ALLIES AND OPPONENTS ALIKE CALL HIM THE QUINTESSENTIAL TRUE BELIEVER DRIVEN BY AN UNSHAKEABLE CONVICTION THAT THE SECOND AMENDMENT OF THE US CONSTITUTION GUARANTEES AN ABSOLUTE INDIVIDUAL RIGHT TO KEEP AND BEAR FIREARMS HE IS THE STRONGEST DEFENDER OF THE SECOND AMENDMENT I HAVE EVER WORKED WITH SAYS MARION HAMMER THE NRA'S SECOND VICE PRESIDENT MIKE BEARD PRESIDENT OF THE COALITION TO STOP GUN VIOLENCE IN WASHINGTON SAYS HE ALWAYS HAD A LOT OF GRUDGING RESPECT FOR MR KNOX HE KNEW WHAT HE WANTED AND HE WOULDN'T ACCEPT ANYTHING LESS THAN THAT HE WANTED ABSOLUTE ADHERENCE TO THE NRA LINE ALTHOUGH HE IS LITTLE KNOWN OUTSIDE GUN CIRCLES MR KNOX IS LIKELY TO HAVE A GREATER IMPACT ON THE RAPIDLY ESCALATING FIREFIGHT OVER GUN CONTROL THAN ANY OTHER INDIVIDUAL IN AMERICA OVER THE PAST THREE YEARS MR KNOX ONE OF 75 DIRECTORS ON THE NRA'S BOARD BUILT HIS INFLUENCE WITHIN THE ASSOCIATION TO WHERE HE NOW HAS VIRTUAL CONTROL OVER ITS OPERATION AND POLICIES ABSOLUTE TOTAL CONTROL SAYS ONE DISGRUNTLED FORMER DIRECTOR RECENTLY OUSTED BY THE KNOX CAMP HIS RISING INFLUENCE COMES AT A TIME WHEN THE NATION SEEMS PRIMED FOR A NEW ROUND OF GUN CONTROLS SIGNS OF THE SHIFT POLLS SHOWING WIDESPREAD SUPPORT FOR NEW GUN CONTROLS THE INCREASED WILLINGNESS OF POLITICIANS TO ATTACK THE NRA AND THREE DOZEN GUN BILLS STACKED UP IN CONGRESS INCLUDING THE BRADY BILL EXPECTED TO COME UP FOR DEBATE TODAY IN THE HOUSE JUDICIARY COMMITTEE AS PART OF A BROADER CRIME BILL THE BRADY BILL PROPOSES A WAITING PERIOD FOR HANDGUN PURCHASES TO BE REPLACED LATER BY AN INSTANT CRIMINALRECORD CHECK AT THE TIME OF PURCHASE AGAINST THIS TIDE STANDS AN INCREASINGLY FUNDAMENTALIST NRA GAINING 1000 NET NEW MEMBERS A DAY AND IMBUED WITH MR KNOX'S BELIEF THAT ANY FIREARMS REGULATION HOWEVER MODEST MOVES THE COUNTRY ANOTHER STEP ONTO THE SLIPPERY SLOPE TOWARD OUTRIGHT CONFISCATION AND TYRANNY IN MR KNOX'S VIEW THE GUN BARREL IS THE FOUNTAINHEAD OF FREEDOM THE SECOND AMENDMENT PUTS THE TEETH IN THE BILL OF RIGHTS GUARANTEEING THROUGH THE THREAT OF GRASSROOTS ARMED FORCE THAT THE GOVERNMENT WILL RESPECT ALL OTHER RIGHTS HE IS A RECENT CONVERT TO A BELIEF NOW GAINING GROUND IN GUN CIRCLES THAT THE FEDERAL GUN CONTROL ACT OF 1968 MAY HAVE BEEN MODELED ON A 1938 NAZI GUNCONTROL LAW HE WOULD HAVE SOLVED THE SOMALI CRISIS HE SAYS NOT BY DISARMING THE COUNTRY BUT BY ARMING THE SOMALI MASSES SPECIFICALLY BY GIVING AK47S TO SOMALI MOTHERS IF THOSE MOTHERS HAD BEEN ARMED WHAT DO YOU THINK WOULD HAVE HAPPENED IF SOME OLD BOYS IN A JEEP WITH A 50CALIBER MACHINE GUN HAD PULLED OVER THE TRUCK THAT WAS BRINGING A LITTLE BIT OF FOOD TO SOME MOTHER'S STARVING BABY THAT MOTHER WOULD HAVE BLOWN AWAY EVERYBODY ON THAT TRUCK AND THAT WOULD HAVE BEEN THAT THAT IS AN ARMED PEOPLE TO ACTIVISTS IN THE KNOX CAMP THE NRA OF THE LATE 1980S WAS AN INEFFECTUAL GOOD OLD BOY'S CLUB WITH A PENCHANT FOR SELLING OUT GUN RIGHTS THEY CREDIT MR KNOX WITH TRANSFORMING THE ASSOCIATION OVER THE PAST THREE YEARS INTO A HARDLINE POLITICAL FORCE MORE RESOLVED TO STAND FIRM AGAINST FIREARMS REGULATION IN THE PROCESS MR KNOX TRANSFORMED HIMSELF FROM A PARIAH FIRED FROM AN NRA EXECUTIVE POST IN 1982 TO THE NRA'S SPIRITUAL MASTER NOW WHEN HE GIVES SPEECHES TO THE FAITHFUL HIS TRADEMARK GREETING GOOD MORNING GUN LOBBY INVARIABLY INCITES A BRIEF PERIOD OF PANDEMONIUM PARADOXICALLY HE MAY ALSO BE PARTLY TO BLAME FOR THE NEW PERCEPTION OF THE NRA AS A VULNERABLE TARGET DESPITE ITS RECORD SIZE OF ALMOST 33 MILLION MEMBERS IN HIS QUEST FOR INFLUENCE MR KNOX ATTACKED THE NRA LEADERSHIP THROUGHOUT THE 1980S WIDENING AN INTERNAL RIFT OVER THE NRA'S MISSION NEVER THE UNIFIED MONOLITH IT HAS BEEN PAINTED TO BE THE NRA HARBORS FACTIONS OF SHOOTERS WHO OPPOSE HIS FUNDAMENTALIST BENT A RECENT SURVEY BY LOUIS HARRIS DENOUNCED BY THE NRA AS A PIECE OF JUNK PROVIDED TANTALIZING IF INCONCLUSIVE EVIDENCE THAT EVEN MANY AMONG THE NRA RANKANDFILE ARE WILLING TO ENDORSE CERTAIN GUN CONTROLS SOME COMPETITIVE SHOOTERS IN PARTICULAR SAY THEY FEEL ABANDONED I'M SO DISILLUSIONED IT'S TERRIBLE SAYS WILLIAM DENEKE A FORMER NRA DIRECTOR WHO HEADS ITS INTERNATIONAL COMPETITION COMMITTEE WHICH GOVERNS THE US OLYMPIC SHOOTING TEAM IN HIS TWEED SHOOTING JACKET AND WIRERIMMED GLASSES MR KNOX 58 YEARS OLD LOOKS MORE LIKE A BENEVOLENT GRANDFATHER THAN A POLITICAL FIREBRAND BUT HE RELISHES CONFRONTATION IN HIS NEWSLETTER THE HARD CORPS REPORT AND ON HIS TAPERECORDED LEGISLATIVEUPDATE SERVICE MR KNOX TALKS OF TAKING OUT POLITICIANS WHO OPPOSE THE NRA HE IS KNOWN TO BE FOND OF THE MAXIM IT IS GOOD TO BE LOVED FAR BETTER TO BE FEARED HE GOT A BB GUN AT THE AGE OF FIVE HIS FIRST RIFLE AT NINE AND WENT ON TO BECOME A PROMINENT GUN JOURNALIST AND CHAMPION TARGET SHOOTER IN THE HEAVY VARMINT RIFLE CATEGORY HE TRACES THE BIRTH OF HIS GUNRIGHTS COMMITMENT TO 1955 WHEN AS A NATIONAL GUARDSMAN AT FORT SILL OKLA HE HEARD A BELGIANBORN COLLEAGUE DESCRIBE THE EXECUTION OF HIS CHILDHOOD PLAYMATES AND THE REST OF THEIR FAMILY BY NAZI SOLDIERS THEIR FATHER HAD BEEN UNABLE TO LOCATE A GUN HE HAD REGISTERED WITH PREWAR BELGIAN AUTHORITIES THAT WAS MY CONVERSION ON THE ROAD TO DAMASCUS MR KNOX SAYS I WAS DETERMINED THAT WOULDN'T HAPPEN HERE IF I HAD ANYTHING TO DO WITH IT AS MR KNOX SEES IT ANY FIREARMS REGULATION MERITS FULLSCALE RESISTANCE THE BRADY BILL IS THE CAMEL'S NOSE UNDER THE TENT HE SAYS A LITTLE MICKEY MOUSE WAITING PERIOD THAT ISN'T WHAT THEY WANT BUT FIGHTING SUCH BILLS HE CONCEDES IS A TRICKY BUSINESS WHAT WE'RE TALKING ABOUT IS FIGHTING ON THE FRONTIER IT IS MORE DIFFICULT TO STAND UP AND FIGHT WHAT APPEARS TO BE A REASONABLE MODEST BILL BUT YOU CAN'T WAIT UNTIL THEY GET TO FIRST AND MAIN BEFORE YOU START FIGHTING HE HAS FOUND HOWEVER THAT HE HAS HAD TO DO HIS FIGHTING INSIDE AS WELL AS OUTSIDE THE NRA IN 1977 HE LED A COUP THAT DEPOSED ITS EXECUTIVE OFFICERS AND REVAMPED ITS RULES GOVERNING INTERNAL ELECTIONS SOON AFTERWARD THE NRA APPOINTED HIM TO HEAD ITS LOBBYING DIVISION THE INSTITUTE FOR LEGISLATIVE ACTION HE SAYS HE PROMPTLY DECLARED WAR ON THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS A UNIT OF THE TREASURY DEPARTMENT AT HIS DIRECTION THE NRA PRODUCED A VIDEO IT CAN HAPPEN HERE WHICH LIKENED THE BUREAU TO A DOMESTIC GESTAPO AND FEATURED MICHIGAN DEMOCRAT REP JOHN DINGELL AN NRA BOARD MEMBER DESCRIBING ATF AS A JACKBOOTED GROUP OF FASCISTS IN 1979 MR KNOX SET OUT TO ATTACK THE GUN CONTROL ACT OF 1968 TO REPEAL THE GUTS OUT OF IT AND LEAVE WHAT WAS HANGING AND CONCEIVED THE MCCLUREVOLKMER ACT WHICH WHEN PASSED IN 1986 PARTIALLY ACHIEVED HIS GOAL MR KNOX THINKS HE MAY HAVE GROWN TOO FEISTY IN 1982 HE WAS FIRED SUDDENLY HE SAYS THE NRA HAD POWERFUL FRIENDS ON CAPITOL HILL AND A WARRIOR READY TO TEAR UP THE ADMINISTRATION DIDN'T FIT IN FAR FROM LEAVING GUN POLITICS MR KNOX BEGAN AN EPIC COMEBACK IN 1983 HE WAS ELECTED A DIRECTOR BUT THE BOARD STILL SMARTING FROM THE 1977 COUP EXPELLED HIM EARLY IN 1984 OSTENSIBLY FOR LOBBYING AGAINST OFFICIAL POSITIONS TAKEN BY THE NRA TO THE BOARD SAYS JOHN WOOTTERS A LONGTIME FRIEND AND A DIRECTOR AT THE TIME HE WAS THE DEVIL UNDAUNTED HE FOUNDED THE FIREARMS COALITION HIS ONEMAN LOBBYING FIRM WHICH HE CONTINUES TO OPERATE FROM HIS ROCKVILLE MD HOME TWICE HE RAN FOR EXECUTIVE VICE PRESIDENT THE NRA'S CHIEF EXECUTIVE OFFICER TWICE HE LOST HE REMAINED CONVINCED HOWEVER THAT ONLY THE NRA HAD THE SIZE AND BUDGET TO DEFEND THE SECOND AMENDMENT HE LAUNCHED YET ANOTHER ELECTORAL ASSAULT THIS TIME RESOLVING TO OVERHAUL THE BOARD ITSELF IN HIS COLUMNS IN SHOTGUN NEWS AND OTHER GUN PUBLICATIONS HE SNIPED AT THENEXECUTIVE VICE PRESIDENT J WARREN CASSIDY ACCUSING HIM OF BEING TOO READY TO MAKE DEALS WITH ANTIGUNNERS IN THE SAME COLUMNS MR KNOX CAMPAIGNED AGGRESSIVELY TO HAVE HIMSELF AND FELLOW GUNRIGHTS ACTIVISTS ELECTED AS DIRECTORS USING A PETITION PROCESS ESTABLISHED IN THE 1977 COUP HE SUCCEEDED TO THE POINT WHERE NOW HIS CAMP OCCUPIES AT LEAST TWOTHIRDS OF THE BOARD SEATS NOW IT IS THE KNOX BOARD THAT HAS GOTTEN A BIT TESTY ABOUT DISSENT EARLIER THIS YEAR THE BOARD BEGAN INTERNAL ETHICS PROCEEDINGS AGAINST THREE FORMER DIRECTORS AFTER THEY PUBLICLY CRITICIZED THE DISPLACEMENT OF VETERAN DIRECTORS AND A 32 MILLION OPERATING DEFICIT INCURRED BY THE NRA LAST YEAR THE NRA SAYS 142 MILLION OF THIS IS MERELY A PAPER DEFICIT ATTRIBUTABLE TO ITS PRACTICE OF AMORTIZING REVENUE FROM NEW MEMBER DUES OVER THE LIFE OF THE MEMBERSHIP WHILE BOOKING THE COST OF ACQUIRING EACH MEMBER WHEN INCURRED ONE OF THE ACCUSED WAS FORGIVEN AFTER OFFERING A FORMAL APOLOGY ANOTHER PAUL DANIELS PRESIDENT OF THE FLORIDA SPORT SHOOTING ASSOCIATION A STATE AFFILIATE OF THE NRA WAS SUSPENDED FROM THE NRA FOR TWO YEARS RAY BURDEN A REVERED DIRECTOR FOR 24 YEARS BEFORE LOSING HIS SEAT TO THE KNOX CAMP THIS YEAR LEARNED HE TOO HAD BEEN CENSURED NEAL KNOX WROTE ANYTHING HE DAMN WELL PLEASED MR BURDEN GROUSES THE INSTANT I SAY ANYTHING I GET BROUGHT UP ON ETHICS CHARGES HIS ANGER RISING HE ADDS I FEEL LIKE IT'S A BUNCH OF B IT'S GONNA HURT THEM A LOT MORE THAN IT HURTS ME MINORITY POWER INDEED JUST HOW MUCH OF A GRASSROOTS MANDATE MR KNOX HOLDS IS UNCLEAR POLITICAL POWER WITHIN THE NRA IS EXERCISED BY A TINY MINORITY OF MEMBERS ONLY MEMBERS WHO PAY THE LIFE MEMBERSHIP FEE OF 500 OR WHO HAVE REMAINED MEMBERS FOR FIVE CONSECUTIVE YEARS ARE ALLOWED TO VOTE IN ELECTIONS ONETHIRD MEET THE REQUIREMENTS BUT ONLY A TENTH OF THESE PRESUMABLY THE MOST ARDENT ACTUALLY VOTE EQUALLY UNCLEAR IS WHETHER THE NEW MEMBERS SHARE MR KNOX'S FERVOR FROM JUNE 1991 UNTIL SEPTEMBER 1993 THE NRA GAINED 783000 NET NEW MEMBERS TWICE THE TOTAL MEMBERSHIP OF ITS LARGEST OPPONENT HANDGUN CONTROL INC HEADED BY SARAH BRADY BUT MR KNOX SAYS HE HARBORS NO ILLUSIONS ABOUT HOW COMMITTED THE NEW MEMBERS ARE LIKELY TO BE I'M DELIGHTED TO HAVE THESE NEWCOMERS TO THE NRA HE SAYS BUT THERE'S SOME NRA MEMBERS IT'S OBVIOUS WHO COME AND GO MR KNOX'S OWN FATHER NOW 81 DRIFTS ON AND OFF THE MEMBERSHIP ROLLS AND CURRENTLY IS NOT QUALIFIED TO VOTE BUT LATELY GUNCONTROL ADVOCATES HAVE BEGUN PROCLAIMING THAT THIS DOG HAS LOST ITS BITE BY WAY OF EXAMPLE THEY POINT TO VIRGINIA ATTORNEY GENERAL MARY SUE TERRY'S WILLINGNESS TO CAMPAIGN OPENLY AGAINST THE NRA IN HER BID TO BECOME GOVERNOR IN NEXT WEEK'S ELECTION MR KNOX CALLS SUCH APPRAISALS WISHFUL THINKING WITH OBVIOUS GLEE HE CITES A RECENT POLL SHOWING MS TERRY TRAILING HER NRABACKED OPPONENT REPUBLICAN GEORGE ALLEN BY 17 POINTS AFTER STARTING THE RACE WITH A SOLID LEAD IF MR ALLEN WINS MR KNOX CROWS IT'LL BE A WHALE OF A COUP AND A BLACK EYE TO ALL THE FOLKS OVER AT HCI HANDGUN CONTROL INC WHO ARE TELLING THE WORLD THIS IS A BIG IMPORTANT ISSUE HERE AND THIS IS THE WAY TO GET ELECTED HE COUNTS THE NRA'S CAMPAIGN AGAINST THE BRADY BILL AS SOMETHING OF A VICTORY EVEN THOUGH CONGRESS IS WIDELY EXPECTED TO ENACT SOME FORM OF THE BILL BY THANKSGIVING I WOULD HAVE BET THE BRADY BILL WOULD HAVE PASSED IN THE LAST TWO CONGRESSES PARTICULARLY THE LAST CONGRESS AND IT DIDN'T MR KNOX SAYS NOW AFTER YEARS OF ATTACKING THE FORMER NRA LEADERSHIP IT IS THE KNOX CAMP THAT WILL HAVE TO PROVE ITSELF IN BATTLE SO FAR THE RISING CLAMOR FOR GUN CONTROL SEEMS TO HAVE HELPED THE NRA WOO MEMBERS YOU'VE GOT TO HAVE DRAGONS TO SLAY SAYS MR CASSIDY THE FORMER EXECUTIVE VICE PRESIDENT AND BILL CLINTON AND JANET RENO ARE MAGNIFICENT DRAGONS BUT HE ASKS WHO ARE THE INCUMBENTS IN THE NRA GOING TO BLAME FOR THE DEFEATS IT'LL BE INTERESTING TO SEE HOW THEY HANDLE THAT CRITICS INSIDE THE ORGANIZATION WORRY THAT MR KNOX'S NOCOMPROMISE APPROACH COULD ISOLATE THE NRA THEY FREQUENTLY CITE A SERIES OF HIS COLUMNS PUBLISHED LAST YEAR URGING NRA MEMBERS NOT TO VOTE FOR THE REELECTION OF GEORGE BUSH BECAUSE OF HIS EXECUTIVE ORDER BANNING THE IMPORTATION OF SOCALLED ASSAULT WEAPONS YOU CAN ONLY BE SO HARD YOU CAN ONLY BE SO TOUGH AND UNBENDING SAYS RAY BURDEN THIS HARD LINE IT WEARS PRETTY THIN AFTER A WHILE THE NRA DOES HAVE A PROBLEM SAYS JOSEPH P TARTARO PRESIDENT OF THE SECOND AMENDMENT FOUNDATION BUFFALO NY HOW SUCCESSFULLY THEY ARE ABLE TO CONVINCE THEIR MEMBERS AND THE GENERAL PUBLIC THAT THEY ARE NOT JUST FOR INDISCRIMINATE GUN OWNERSHIP WILL HAVE AN INFLUENCE ON WHAT GUN LEGISLATION IS PASSED ANY LOSS WILL FURTHER BATTER THE NRA'S IMAGE FOR THE NRA TO LOOK GOOD IT HAS TO WIN EVERY BATTLE FOR THE OTHER SIDE TO LOOK GOOD IT HAS TO WIN ONE BATTLE SAYS ALAN GOTTLIEB CHAIRMAN OF THE CITIZENS COMMITTEE FOR THE RIGHT TO KEEP AND BEAR ARMS BELLEVUE WASH MR KNOX SAYS THE NRA IS JUST AS POWERFUL AS ALWAYS IF NOT MORE SO BUT ADDS I DON'T EVER CLAIM THAT YOU CAN FIGHT ON THIS MANY FRONTS AT ONE TIME AND NOT LOSE ANY BATTLES HE HAS NO PLANS TO RELENT SARAH MEANING SARAH BRADY THINKS WE'VE GIVEN THEM A HARD TIME HE SAYS HE GRINS WITH BOYISH DELIGHT THEY AIN'T SEEN NOTHIN' YET SEE RELATED LETTER LETTERS TO THE EDITOR NOW THE NRA TELLS US WATCH OUT FOR NAZIS WSJ NOV 18 1993 9310260143 YY93 MM11 SEE RELATED LETTERS LETTERS TO THE EDITOR KNOX AND THE NRA SOME QUICK DRAWS WSJ NOV 22 1993 9311180086 931013 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB THE ABSURDITIES OF LIFE IN WASHINGTON WERE ABUNDANTLY CLEAR A COUPLE OF SATURDAYS BACK WHEN TWO SEPARATE SHOCKS JOLTED THE NATION'S CAPITAL IN SOMALIA ABOUT 8000 MILES AWAY A US HELICOPTER WAS SHOT DOWN AND THREE US SOLDIERS KILLED IN SOUTHEAST WASHINGTON ABOUT THREE MILES FROM THE CAPITOL DOME FOUR US CITIZENS INCLUDING A FOURYEAROLD GIRL WERE SHOT AND KILLED IN A SPASM OF DRUGRELATED SLAUGHTER THE SOMALIA TRAGEDY SET OFF A NATIONAL DEBATE THAT CULMINATED IN A PRESIDENTIAL SPEECH AND A CHANGE IN POLICY THE KILLINGS IN WASHINGTON'S RIDGE ROAD AREA RAISED EYEBROWS THEN PASSED FROM MEMORY NO NATIONAL POLICIES CHANGED NO PRESIDENTIAL SPEECHES WERE DELIVERED SOON WASHINGTON'S GLITTERATI WERE GATHERING AT NEARBY RFK STADIUM FOR A REDSKINS GAME OBLIVIOUS TO THE PROBLEMS OF THE BLACK NEIGHBORHOOD AROUND THEM THIS IS A TRAGEDY THE CARNAGE IN US CITIES HAS BECOME SO GREAT THAT POLITICAL LEADERS ARE SIMPLY TUNING IT OUT EVEN AS THEY WORRY MIGHTILY ABOUT LESSER TRAGEDIES NOWHERE IS THAT CLEARER THAN IN WASHINGTON ITSELF SO FAR 27 AMERICANS HAVE BEEN KILLED IN FIGHTING IN SOMALIA IN WASHINGTON LAST YEAR 16 TIMES AS MANY PEOPLE 443 WERE MURDERED TO PUT THAT IN PERSPECTIVE CONSIDER THAT JUST 81 MURDERS WERE COMMITTED IN WASHINGTON IN 1960 WHEN THE CITY HAD A POPULATION 175000 HIGHER THAN IT DOES TODAY IN SHORT A DC RESIDENT IS SEVEN TIMES MORE LIKELY TO BE MURDERED TODAY THAN 33 YEARS AGO OVER THE SAME TIME SPAN ROBBERIES ARE UP SEVENFOLD CAR THEFTS UP 455 THERE IS NO LONGER ANY REAL DEBATE ABOUT WHAT IS BEHIND THE VIOLENCE IN THE CITIES A COMBINATION OF DRUGS AND THE BREAKDOWN OF THE FAMILY STRUCTURE HAVE SHREDDED THE SOCIAL FABRIC RACISM CLEARLY PLAYS A BIG ROLE IN THE APATHY WITH WHICH THE POLITICAL SYSTEM VIEWS THIS HORROR IF THE KILLINGS THAT MAR WASHINGTON WERE OCCURRING IN THE CITY'S WHITE NEIGHBORHOODS RATHER THAN IN POOR BLACK ONES THE NATION'S POLITICAL LEADERSHIP WOULD FIND A WAY TO STOP THEM THE REV RAYMOND MOORE A PRIEST WHO HAS SERVED IN THE POOR NEIGHBORHOODS OF SOUTHEAST WASHINGTON FOR 13 YEARS SITS BEFORE THE BARRED WINDOWS OF HIS OFFICE AND NOTES THAT THE SAME ABANDONED HOUSING PROJECTS THAT SAT EMPTY WHEN HE ARRIVED STILL STAND EMPTY TODAY SERVING AS BREEDING GROUNDS FOR DRUG DEALS THE REALITY IS THAT IF THEY WERE ON FOXHALL ROAD THEY WOULDN'T HAVE SAT THERE FOR 20 YEARS THEY WOULDN'T HAVE SAT THERE FOR 20 MINUTES HE SAYS REFERRING TO A TONY STREET IN UPSCALE NORTHWEST WASHINGTON LIBERALS WHO REFUSE TO ADMIT THE FAILURES OF A GENERATION'S WORTH OF PROGRAMS AND CONSERVATIVES WHO WISH THE PROBLEMS AWAY ARE EQUALLY CULPABLE BUT THE TASK NOW IS TO DO SOMETHING IDEAS ARE AFLOAT IN THE POLITICAL SYSTEM AVAILABLE IF THERE IS WILLINGNESS TO SHAKE THINGS UP FOR ONE THING THE WELFARE SYSTEM MUST BE FIXED THE GOAL SHOULDN'T BE SIMPLY TO GET PEOPLE OFF THE ROLLS BUT TO PROVIDE INCENTIVES TO REBUILD THE FAMILY STRUCTURE SEVEN IN 10 BLACK BABIES TODAY ARE BORN OUT OF WEDLOCK AND THE CURRENT WELFARE SYSTEM GIVES THEIR MOTHERS LITTLE INCENTIVE TO MARRY STOP HAVING BABIES OR QUIT DRUGS OFTEN THE INCENTIVES RUN IN THE OPPOSITE DIRECTION THE POLICY THAT WOULD REALLY CHANGE THIS PLACE IS IF THE WELFARE CHECKS WERE JUST CUT OUT BLUNTLY DECLARES SISTER ELLEN MARIE HAGAR PRINCIPAL OF A SCHOOL IN THE RIDGE ROAD NEIGHBORHOOD HER ALTERNATIVE A GOVERNMENT CHECK ONLY IF RECIPIENTS ARE IN AN EDUCATION PROGRAM OR DOING VOLUNTEER WORK OTHER IDEAS ARE POPPING UP ONE ENORMOUS SOCIAL PROBLEM IS THE FAILURE OF YOUNG FATHERS TO TAKE RESPONSIBILITY FOR THEIR OUTOFWEDLOCK OFFSPRING SO NEW JERSEY GOV JIM FLORIO PROPOSES REQUIRING MOTHERS TO IDENTIFY THE FATHERS OF NEW BABIES AND THE STATE IS ABOUT TO START PRODUCING A LIST OF THE 10 MOST WANTED DEADBEAT DADS ELUDING CHILDSUPPORT PAYMENTS WHOSE PICTURES WILL BE POSTED ON FLIERS AND THE SIDES OF BUSES MIRACULOUSLY DADS HAVE STARTED COMING OUT OF THE WOODWORK AS A RESULT IT'S FUNNY HOW MANY FATHERS FOUND THEIR WAY TO THE OFFICE ONCE THEY FOUND OUT ABOUT THE 10MOSTWANTED LIST SAYS BRENDA BACON A FLORIO AIDE IN CALIFORNIA VOTERS WILL SOON DECIDE THE FATE OF A PLAN TO GIVE PARENTS A TAXFUNDED VOUCHER TO SPEND AT THE SCHOOL OF THEIR CHOICE A MOVE THAT SOME HOPE WILL GIVE SOME POOR CHILDREN A NEW PATH UP THE CALIFORNIA INITIATIVE CREATES MORE PROBLEMS THAN IT SOLVES BUT AT LEAST IT'S A STAB AT CHANGING THINGS THE CLINTON ADMINISTRATION IS WORKING ON A BIG PLAN TO CHANGE WELFARE AS WE KNOW IT WHICH WILL INCLUDE MUCH NEW THINKING BUT THE BIGGER CHALLENGE FOR PRESIDENT CLINTON AND OTHER LEADERS IS SIMPLY TO REACH AND INSPIRE THE DISILLUSIONED AND DROWNING YOUNG OF TODAY'S CITIES IT IS A CASE SAYS FATHER MOORE OF WHOLESALE HOPELESSNESS SEE RELATED LETTERS LETTERS TO THE EDITOR CARING CONSERVATIVES OFFER SOLUTIONS WSJ NOV 18 1993 9310130146 YY93 MM11 9311180075 931001 A PRAYER FOR A BETTER EDUCATION BY DANIEL MCGROARTY CYNTHIA MILLER IS ABOUT TO JOIN THIS COUNTRY'S GREAT EDUCATION DEBATE SHE ISN'T A TEACHER OR A POLITICIAN OR A DOCTOR OF EDUCATION MS MILLER IS A MILWAUKEE MOTHER INTENT ON HELPING HER SON GET A QUALITY EDUCATION WHAT SHE WANTS FOR HER SON ISN'T A MULTICULTURAL CURRICULUM OUTCOMESBASED EDUCATION OR ANY OF THIS FALL'S LINE OF EDUCATIONAL FADS OR FASHIONS ALL SHE WANTS FOR HER NINEYEAROLD IS A BASIC EDUCATION IN A STABLE ENVIRONMENT TO THAT END SHE AND A GROUP OF MILWAUKEE PARENTS FILED SUIT YESTERDAY TO OPEN UP THE CITY'S INNOVATIVE SCHOOL CHOICE PROGRAM TO INCLUDE SECTARIAN PRIVATE SCHOOLS IF THEY WIN THE CASE THE DECISION WILL HAVE IMPLICATIONS NATIONWIDE FOR THE BURGEONING SCHOOL CHOICE MOVEMENT AND WILL GO A LONG WAY TOWARD LIBERATING THE PUBLIC EDUCATION SYSTEM THAT IS HOLDING BACK SO MANY OF AMERICA'S POOREST CHILDREN MS MILLER HAS HEARD THE ARGUMENTS AGAINST SCHOOL CHOICE FROM MILWAUKEE'S EDUCATION ESTABLISHMENT AND HASN'T BEEN PERSUADED IT'S EASY TO GET DISILLUSIONED WHEN THEY TURN EVERY FRESH PROOF OF EDUCATIONAL FAILURE INTO AN ARGUMENT FOR HIGHER FUNDING FOR THIS MILWAUKEE MOTHER THE ANSWER TO THE SHORTCOMINGS OF HER SON'S PUBLIC SCHOOL IS ALMOST LITERALLY RIGHT DOWN THE STREET AT ST ROSE SCHOOL THAT'S WHERE SHE'S THOUGHT ABOUT SENDING HER SON MARQUELLE THE PROBLEM MS MILLER WORKS AS A HOSPITAL TECHNICIAN HER HUSBAND IS OUT OF WORK ST ROSE'S 1325 TUITION IS BEYOND THEIR REACH IN ANY OTHER AMERICAN CITY BUT MILWAUKEE PARENTS IN THIS POSITION WOULD PROBABLY BE OUT OF LUCK BUT THE MILLERS' HOMETOWN HAPPENS TO BE THE HOTBED OF PRIVATE SCHOOL CHOICE SINCE 1990 MILWAUKEE HAS BEEN THE ONLY CITY IN THE US IN WHICH LOWINCOME PARENTS ARE ELIGIBLE TO USE PUBLIC FUNDS TO ENROLL THEIR CHILDREN IN PRIVATE SCHOOL DESPITE A WITHERING ATTACK FROM THE PUBLIC EDUCATION LOBBY THE MILWAUKEE PARENTAL CHOICE PROGRAM IS WORKING TO POPULAR PARENTAL ACCLAIM NEVERTHELESS TWO REQUIREMENTS HAVE KEPT THE PROGRAM FROM MEETING STUDENT DEMAND THE SCHOOL CHOICE PROGRAM IS LIMITED TO 1 OF THE TOTAL ENROLLMENT IN MILWAUKEE CITY SCHOOLS LAST YEAR 933 STUDENTS WERE ELIGIBLE AND TO BE REGISTERED AS CHOICE SCHOOLS PRIVATE SCHOOLS MUST BE NONSECTARIAN JUST 13 PRIVATE SCHOOLS HAVE MET THAT TEST AS A RESULT MORE CHILDREN HAVE BEEN TURNED AWAY FROM THE CHOICE PROGRAM THAN HAVE BEEN ACCEPTED MEANWHILE THERE ARE MORE THAN 80 PRIVATE SCHOOLS WITHIN CITY LIMITS PROHIBITED FROM PARTICIPATING IN THE PARENTAL CHOICE PROGRAM THE REASON THEY ARE CATHOLIC PROTESTANT MUSLIM OR JEWISH THAT'S THE ISSUE AT THE CENTER OF MS MILLER'S FEDERAL SUIT FILED BY THE WASHINGTON OFFICE OF THE LANDMARK LEGAL FOUNDATION WITH ASSISTANCE FROM THE CENTER FOR EDUCATION REFORM IN WASHINGTON THE SUIT WAS FILED ON BEHALF OF MS MILLER'S SON AND THREE OTHER CHILDREN FROM LOWINCOME MILWAUKEE FAMILIES BY LIMITING MILWAUKEE'S PARENTAL CHOICE PROGRAM TO NONSECTARIAN PRIVATE SCHOOLS LANDMARK ARGUES WISCONSIN HAS UNCONSTITUTIONALLY ABRIDGED PARENTS' FREE EXERCISE OF RELIGION UNDER THE FIRST AMENDMENT THE KEY ACCORDING TO LANDMARK'S GENERAL COUNSEL MARK BREDEMEIER IS THAT SCHOOL CHOICE VOUCHERS ARE AID TO INDIVIDUALS NOT INSTITUTIONS VOUCHERS USED FOR TUITION AT RELIGIOUS SCHOOLS DO NOT BREACH THE ESTABLISHMENT CLAUSE BECAUSE THE GOVERNMENT DOES NOT DICTATE OR DIRECT THE DESTINATION OF THE FUNDS WHERE FAMILIES REDEEM THEIR VOUCHER SAYS MR BREDEMEIER WHETHER AT A PUBLIC PRIVATE OR RELIGIOUS SCHOOL IS UP TO THEM THIS IS THE REASONING THAT SUPPORTS THE GI BILL GRANTS WHICH VETERANS CAN USE TO ENROLL AT THE COLLEGE OF THEIR CHOICE WHETHER IT'S NORTH CAROLINA STATE OR NOTRE DAME YALE OR YESHIVA IT'S THE SAME RATIONALE THAT ENTITLES LOWINCOME PARENTS TO CHILDCARE TAX CREDITS AGAINST THE EXPENSE OF ENROLLING THEIR CHILDREN NOT ONLY IN PUBLIC DAY CARE FACILITIES BUT IN PRIVATE CHURCHBASED CHILD CARE CENTERS BUT WHILE THAT PRINCIPLE IS BACKED BY PRECEDENT FOR CHILDCARE AND COLLEGE GRANTS IT IS CONSPICUOUSLY ABSENT FROM THE TIME CHILDREN ENTER KINDERGARTEN TO THE TIME THEY GRADUATE FROM HIGH SCHOOL MIDDLE AND UPPERCLASS AMERICANS MAY HAVE THE RESOURCES TO PAY PRIVATE SCHOOL TUITION OR BUY HOMES IN NEIGHBORHOODS WITH STRONG PUBLIC SCHOOLS BUT WHERE DOES THAT LEAVE THE CHILDREN OF LOWINCOME PARENTS LIVING IN THIS COUNTRY'S CENTRAL CITIES CONSIGNED FROM K12 TO THE PUBLIC SCHOOL GULAG FOR MILLIONS OF CHILDREN THAT'S A 13YEAR SENTENCE IN AN EDUCATIONAL SAHARA WHAT HOPE DOES A PELL GRANT WHICH PROVIDES FINANCIAL AID FOR COLLEGE HOLD WHEN 40 OF ALL STUDENTS WHO ENROLL IN BIGCITY HIGH SCHOOLS NEVER MAKE IT TO GRADUATION PARENTS LIKE THE ONES FILING THE SUIT IN MILWAUKEE DON'T HAVE THEIR EYES ON ELITE EXCLUSIVE PREP SCHOOLS A CHOICE VOUCHER AT 2700 WORTH HALF THE AMOUNT PER PUPIL THAT MILWAUKEE'S PUBLIC SCHOOLS SPEND TO ACHIEVE FAILURE WOULDN'T BEGIN TO PAY CHELSEA CLINTON'S TUITION AT SIDWELL FRIENDS BUT IT MORE THAN MEETS THE TUITION AT SCHOOLS LIKE ST ROSE AND EVEN IN THE TOUGHEST PARTS OF TOWN PRIVATE SCHOOLS CAN BE OASES OF OPPORTUNITY LOOK AT MILWAUKEE'S MESSMER HIGH SCHOOL AN INNERCITY SCHOOL THE CATHOLIC DIOCESE CLOSED DOWN 10 YEARS AGO ONLY TO WATCH DISTRAUGHT PARENTS REOPEN IT AS AN INDEPENDENT SCHOOL THAT IS NO LONGER AFFILIATED WITH THE CATHOLIC CHURCH MESSMER HAS BEEN LOCKED OUT OF PARENTAL CHOICE BECAUSE PUBLIC AUTHORITIES FIND IT PERVASIVELY RELIGIOUS IN A CITY WHERE FEWER THAN HALF OF ALL MINORITY STUDENTS GET THEIR HIGH SCHOOL DIPLOMA MESSMER GRADUATES 98 OF ITS STUDENTS A WALL PLAQUE IN MESSMER'S ENTRYWAY LISTS GRADUATING SENIORS AND THE COLLEGES TO WHICH THEY'VE BEEN ACCEPTED LAST YEAR 79 OF THOSE SENIORS WENT ON TO COLLEGE AS A MOVEMENT SCHOOL CHOICE IS GAINING MOMENTUM JUST OVER ONE MONTH FROM NOW CALIFORNIA VOTERS WILL DECIDE WHETHER TO MAKE SCHOOL CHOICE VOUCHERS AVAILABLE TO EVERY STUDENT IN THEIR MEGASTATE PROVOUCHER FORCES ARE UP AGAINST CALIFORNIA'S POWERFUL PUBLIC TEACHERS LOBBY WHICH HAS STOCKPILED 15 MILLION FOR AN ANTIVOUCHER MEDIA BLITZ IF CHOICE FAILS IN CALIFORNIA CRITICS WILL CLAIM THEY HAVE SLAIN THE DRAGON EVEN IF CHOICE WINS THERE COUNT ON PUBLIC EDUCATION AUTHORITIES TO FILE SUIT TO STOP IT EITHER WAY THE PROSPECT OF SCHOOL CHOICE MAY BE DECIDED NOT BY MILLIONS OF VOTERS IN CALIFORNIA BUT BY FOUR PARENTS IN MILWAUKEE IF THE MILWAUKEE PARENTS WIN THEIR CASE THE REVERBERATIONS COULD SHAKE THE PUBLIC SCHOOL MONOPOLY TO ITS CORE AND CRACK OPEN PRIVATE SCHOOL CHOICE TO MILLIONS OF FAMILIES ACROSS THE COUNTRY MS MILLER HASN'T GIVEN ANY THOUGHT TO APPEARING IN THE CONSTITUTIONAL LAW TEXTBOOKS SHE'S JUST THINKING ABOUT MARQUELLE AND AT BOTTOM THAT'S WHAT MILLER ET AL V BENSON AND THE WISCONSIN DEPARTMENT OF PUBLIC INSTRUCTION IS ALL ABOUT PARENTS WHO WANT A CHOICE AND CHILDREN WHO DESERVE A CHANCE MR MCGROARTY DEPUTY DIRECTOR OF WHITE HOUSE SPEECHWRITING FOR PRESIDENT BUSH IS A FELLOW AT THE INSTITUTE FOR CONTEMPORARY STUDIES IN ARLINGTON VA SEE RELATED LETTER LETTERS TO THE EDITOR WHY SECTARIAN' IS AN INSULT WSJ OCT26 1993 SEE RELATED LETTER LETTERS TO THE EDITOR THE GI BILL WAS NEVER A GRANT' WSJ OCT 29 1993 9310010070 9310260147 9310290123 YY93 MM10 YY93 MM11 9311170195 931117 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER RANKED BY THE NET CHANGE IN SHARES HELD BY THOSE INSIDERS WHO BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES UNEXERCISED OPTIONS COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9311170194 931117 WHO'S NEWS READER'S DIGEST ASSOCIATION INC READER'S DIGEST ASSOCIATION INC PLEASANTVILLE NY REBECCA SCHIFF 40 YEARS OLD WAS NAMED VICE PRESIDENT INVESTOR RELATIONS OF THIS PUBLISHER AND DIRECT MAIL MARKETER EFFECTIVE DEC 6 SHE SUCCEEDS ROSS JONES 51 WHO LEFT THE COMPANY TO BECOME CHIEF FINANCIAL OFFICER AT KNIGHTRIDDER INC IN MIAMI MS SCHIFF A CERTIFIED PUBLIC ACCOUNTANT WAS FORMERLY DIRECTOR OF INVESTOR RELATIONS AT PFIZER INC A PHARMACEUTICAL CONCERN 9311170193 931117 AMERICAN NURSERY SETS DEBT AGREEMENTS SEEKS CHAPTER 11 RELIEF TAHLEQUAH OKLA AMERICAN NURSERY PRODUCTS INC CAPPING A TWOYEAR RESTRUCTURING PROGRAM SAID ITS SENIOR LENDERS AGREED TO CONVERT 17 MILLION OF DEBT INTO STOCK AS PART OF A PREPACKAGED CHAPTER 11 BANKRUPTCYCODE FILING THE FILING WAS MADE IN A FEDERAL BANKRUPTCY COURT IN OKMULGEE OKLA CURRENT SHAREHOLDERS OF THE GROWER AND SHIPPER OF TREES AND SHRUBS ARE EXPECTED TO LOSE THEIR INVESTMENTS THE COMPANY'S STOCK STOPPED TRADING ON THE NASDAQ STOCK MARKET IN DECEMBER 1991 LENDERS ALSO AGREED TO RESTRUCTURE 15 MILLION IN DEBT GIVING IT A LOWER INTEREST RATE AND TO PROVIDE A 5 MILLION LINE OF CREDIT UNDER THE REORGANIZATION PLAN TRADE CREDITORS WOULD GET 80 CENTS ON THE DOLLAR AMERICAN NURSERY SAID IT EXPECTS TO BE PROFITABLE ONCE IT EMERGES FROM BANKRUPTCY COURT THE COMPANY'S TRUCKING UNIT MIDWESTERN TRANSIT INC WASN'T A PART OF THE CHAPTER 11 FILING 9311170192 931117 AMR'S UNIT PACT FORT WORTH TEXAS AMR CORP SAID ONE OF ITS UNITS SIGNED A LETTER OF INTENT TO LEASE SIX DC1010 WIDEBODY JETS TO HAWAIIAN AIRLINES HONOLULU THE UNIT AMR TRAINING & CONSULTING GROUP SAID THE SEVENYEAR LEASE AGREEMENT IS PART OF A PROPOSED COMPREHENSIVE SERVICES PACT THAT INCLUDES MAINTENANCE AND TRAINING SUPPORT FREQUENT FLYER MARKETING COMPUTER RESERVATIONS AND VACATION TOUR PACKAGES 9311170191 931117 US TRACTOR SALES FELL IN OCTOBER CHICAGO US TRACTOR UNIT SALES SLIPPED 55 TO 7923 IN OCTOBER FROM 8382 IN THE SAME 1992 MONTH ACCORDING TO THE EQUIPMENT MANUFACTURERS INSTITUTE HERE FOR THE 10 MONTHS OF THE YEAR TRACTOR SALES CLIMBED 84 TO 80002 UNITS FROM 73792 UNITS FOR THE SIMILAR 1992 PERIOD OCTOBER COMBINE SALES DROPPED 293 TO 933 UNITS FROM 1320 UNITS DURING THE SAME 1992 MONTH 9311170190 931117 CD YIELDS EDGED UP DURING THE LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS ROSE SLIGHTLY IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCREASED TO 274 FROM 271 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS CREPT UP TO 442 FROM 440 THE WILMINGTON DEL INFORMATION SERVICE SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED UP TO 282 FROM 281 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 459 FROM 457 ACCORDING TO BANXQUOTE MEANWHILE THE AVERAGE YIELD ON SIXMONTH CDS SOLD BY MAJOR BROKERAGE FIRMS REMAINED AT 326 ACCORDING TO BANXQUOTE ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 456 FROM 465 THE SURVEY SAID 9311170189 931117 MARKETING & MEDIA TCI OFFERS APOLOGY TO FCC FOR MEMO ON CABLE RATE RISES LET'S TAKE ADVANTAGE' SAID MESSAGE TO LOCAL MANAGERS AND BLAME THE '92 CABLE ACT BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL TELECOMMUNICATIONS INC SAID IT APOLOGIZED TO THE FEDERAL COMMUNICATIONS COMMISSION FOR AN INTERNAL MEMO THAT URGED LOCAL MANAGERS TO RAISE CABLE RATES AND BLAME THE INCREASES ON THE 1992 CABLE ACT IN AN AUG 20 1993 MEMO TO TCI CABLE SYSTEM MANAGERS NATIONWIDE BARRY MARSHALL AN EXECUTIVE VICE PRESIDENT OF THE COMPANY CONFIRMED CONSUMERS' WORST FEARS ABOUT CABLE MONOPOLIES ALTHOUGH CUSTOMERS MAY OBJECT TO THE PRICE INCREASES HE WROTE IT WILL TAKE A WHILE BUT THEY'LL GET USED TO IT HE ADDED THE BEST NEWS OF ALL IS WE CAN BLAME IT ON REREGULATION AND THE GOVERNMENT NOW LET'S TAKE ADVANTAGE OF IT THE MEMO WHICH FIRST APPEARED IN A STORY IN THE WASHINGTON POST EXEMPLIFIES MANY CABLE OPERATORS' OPEN CONTEMPT FOR THE 1992 CABLE ACT IN RECENT MONTHS SEVERAL CABLE OPERATORS HAVE RAISED RATES THROUGH CREATIVE PRICING THEN BLAMED THE INCREASES ON THE NEW LAW REP ED MARKEY A PRINCIPAL AUTHOR OF CABLE ACT SAID THE MEMO SHOWS A NEW LEVEL OF DISRESPECT FOR BOTH CABLE CUSTOMERS AND THE GOVERNMENT REGULATORS HE ASKED THE FCC TO SCRUTINIZE TCI'S NEW RATES UNDER THE LAW BASED IN ENGLEWOOD COLO TCI THE NATION'S LARGEST CABLE OPERATOR SAID IT HAS NOT ENGAGED IN A PATTERN OF BLAMING EITHER THE FCC OR CONGRESS FOR INCREASES THE COMPANY CONCEDED HOWEVER THAT THE TONE OF ONE PORTION OF THE MEMO WAS REGRETTABLE TCI ALSO SAID IT HAS COMPLIED WITH THE NEW LAW AND LOWERED RATES FOR 80 OF ITS CUSTOMERS WHILE THE CABLE ACT WHICH TOOK EFFECT IN SEPTEMBER RESTRICTS THE RATES OF BASIC CABLE SERVICE AND OTHER TIERS OF SERVICE CERTAIN CHARGES AREN'T COVERED MR MARSHALL REMINDED MANAGERS THAT TRANSACTION CHARGES FOR UPGRADES DOWNGRADES AND CUSTOMERCAUSED SERVICE CALLS VCR HOOKUPS ETC ARE VITAL NEW REVENUE SOURCES TO US IN THE MEMO MR MARSHALL SAID THAT THE COMPANY COULD RECOVER ALMOST HALF OF WHAT WE'RE LOSING FROM RATE ADJUSTMENTS WITH THE ADDITIONAL CHARGES EARLIER IN THE YEAR TCI SAID THAT REVENUE LOSS FROM THE NEW FCC RATE REGULATION WOULD RANGE FROM 140 MILLION TO 160 MILLION 9311170188 931117 BOSTON HOUSING SALES TURN THE CORNER REST OF NORTHEAST FOLLOWS CLOSE BEHIND BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON AFTER SEVERAL YEARS OF BEING IN THE DOLDRUMS THE RESIDENTIAL REALESTATE MARKET HERE IS FINALLY ON THE WAY BACK MANY BUILDERS WHO WENT THROUGH A DIZZYING CLIMB IN THE MID1980S AND AN EQUALLY RAPID PLUNGE IN THE PAST FEW YEARS NOW SEE AN UPSWING THE RECOVERY IS ALSO EVIDENT TO A LESSER DEGREE IN MUCH OF THE REST OF THE NORTHEAST IN OTHER PARTS OF THE COUNTRY WITH THE NOTABLE EXCEPTION OF CALIFORNIA HOME SALES HAVE BEEN BOOMING SINCE LAST YEAR WE'RE OFF THE BOTTOM SAID MARK ZANDI CHIEF ECONOMIST FOR REGIONAL FINANCIAL ASSOCIATES IN WEST CHESTER PA WE'RE NOT SEEING THE HEMORRHAGING WE SAW A COUPLE OF YEARS AGO THE WORST IS BEHIND THE ECONOMY AND JOB MARKETS INTEREST RATES AT A QUARTERCENTURY LOW COMBINED WITH AN EASING OF JOB LOSSES APPEAR TO HAVE UNLEASHED PENTUP DEMAND FOR HOUSING EXISTINGHOME SALES IN BOSTON WHICH CRASHED BY A THIRD FROM 1989 TO 1991 HAVE ALREADY REBOUNDED TO THEIR PEAK ANNUAL RATE OF 41000 MEDIAN EXISTINGHOME PRICES WHICH PEAKED IN 1989 AT 182000 AND FELL TO 169000 BY 1991 HAVE CLIMBED MORE THAN HALF WAY BACK TO 176000 IN THE SECONDQUARTER MOST OF THE ACTIVITY HAS BEEN IN EXISTINGHOME SALES BUT THERE ALSO HAS BEEN A SLIGHT REBOUND IN HOME CONSTRUCTION IN BOSTON SINGLEFAMILY HOUSING PERMITS JUMPED 264 IN THE THIRDQUARTER AGAINST THE SAME PERIOD A YEAR AGO THE NORTHEAST IN GENERAL GREW 11 TRAILING THE NATIONAL AVERAGE OF 135 BARBARA ALLEN AN ANALYST AT DONALDSON LUFKIN & JENRETTE IS ESTIMATING AN EVEN MORE ROBUST 1994 IT APPEARS TO BE QUITE WIDESPREAD MS ALLEN SAID OF THE UPTURN IN THE REGION THE IMPLICATIONS FOR THE REST OF THE COUNTRY NOT JUST THE NORTHEAST ARE VERY POWERFUL EVEN THOUGH THE ECONOMY ISN'T GROWING SIGNIFICANTLY SHE SAID DEMAND FOR HOUSING IN THE NORTHEAST HAS GROWN SO RAPIDLY THAT IT HAS OUTPACED SUPPLY AND PUT PRESSURE ON PRICES MAYBE WE'LL FINALLY HAVE A RECOVERY SHE SAID IT'S VERY ENCOURAGING WE AREN'T BUILDING ENOUGH AND WE WON'T BE ABOUT TO IN THE NORTHEAST THE MEDIAN HOME PRICE WHICH FELL LESS THAN HALF AS FAR AS IN BOSTON IS 142100 DOWN ONLY SLIGHTLY FROM THE 1989 PEAK OF 145100 BY THE FIRST HALF OF THIS YEAR THE VOLUME OF HOME SALES IN THE NORTHEAST HAD BOUNCED BACK TO AN ANNUAL RATE OF 533400 OR 5 OFF THE 1985 PEAK SOME ANALYSTS HOWEVER CAUTION THAT HIGH PRICES ARE STILL A BARRIER TO A RECOVERY INGO WINZER EDITOR OF THE NATIONAL REVIEW OF REAL ESTATE MARKETS PICKED BOSTON AS ONE OF THE WORST REALESTATE MARKETS IN THE NATION BECAUSE THE MEDIAN HOME PRICE IS STILL 20 TOO HIGH COMPARED TO REGIONAL INCOMES HE PREDICTS THAT IT WILL BE AT LEAST FOUR YEARS UNTIL HOUSING COSTS ARE IN EQUILIBRIUM WITH INCOME BASED ON THE PAUCITY OF JOB GROWTH IN THE PAST FIVE YEARS AND THE HIGH DEPENDENCE ON DEFENSE SPENDING IN CONNECTICUT AND MASSACHUSETTS MR WINZER SAID THE NORTHEAST'S OUTLOOK ISN'T FAVORABLE BUT MOST ANALYSTS WHILE CAUTIOUS STILL SAY BOSTON IS REBOUNDING WE'RE NOT GOING TO SEE THE EMPLOYMENT GAINS NEEDED FOR A BOOM SAID MR ZANDI ADDING THAT BABY BOOMERS ARE MOVING INTO THEIR LAST HOMES SLOWING THE TRADEUP MARKET I DON'T THINK WE'RE GOING TO SEE THE KIND OF ACTION WE SAW IN THE '70S JUST SEEING ANY ACTION LET ALONE CROWDS IS A RELIEF IN THESE PARTS FOR THE FIRST TIME IN YEARS THERE IS ACTUALLY CONGESTION IN THE MARKET FIVE COUPLES LINED UP AT THE SALES OFFICE OF A TOLL BROTHERS INC DEVELOPMENT IN NEARBY SHARON ON A RECENT SATURDAY EACH SIGNING CONTRACTS OR LEAVING DEPOSITS ON NEW HOMES SUNDAY WAS ALMOST AS BUSY PUTTING THE HUNTINGDON VALLEY PA CONCERN ON TRACK FOR MORE THAN 60 SALES THIS YEAR AT THIS SITE MORE THAN DOUBLE A YEAR AGO THE FACT THAT PRICES ON THE AVERAGE HOME HAVE SHOT UP 45000 SINCE FEBRUARY HASN'T DAMPED THE PACE OUR HOTTEST COMMUNITY SAID ROBERT I TOLL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS SHARON DEVELOPMENT IT FEEDS ON ITSELF WHEN BUYERS SEE LOTS GOING PRICES RISING PEOPLE START TO BUY MORE AROUND BOSTON OTHER SIGNS OF A REALESTATE REVIVAL ARE EASY TO SPOT SOME REALESTATE AGENTS REPORT HOUSING RESALES DOUBLE THE VOLUME OF LAST YEAR MEMBERSHIP IN THE GREATER BOSTON REAL ESTATE BOARD TELLS THE SAME STORY FROM ITS NADIR IN 1991 MEMBERSHIP HAS GROWN BY MORE THAN 200 AND NOW STANDS AT 4100 COMPARED WITH A 1987 PEAK OF ABOUT 5100 AND REALESTATE AGENTS SAY THEY'RE SPOTTING RELOCATION BUSINESS FOR THE FIRST TIME IN YEARS EDDIE PARK IS TYPICAL RECENTLY HIRED BY GILLETTE CO AS A PROJECT ENGINEER MR PARK WAS PICKING OUT TILE FOR HIS NEW HOUSE AT THE TOLL BROTHERS SITE IN SHARON WHEN HE BUMPED INTO ANOTHER RECENTLY HIRED COWORKER WHO WAS ALSO LOOKING FOR A HOUSE THE DAYS OF WHAT CENTURY 21 REALESTATE AGENT STEVEN P SAVARESE CALLED AWESOME APPRECIATION HAVEN'T RETURNED BUT PEOPLE ARE SERIOUS ABOUT BUYING AGAIN ALTHOUGH THEY ARE MUCH MORE SELECTIVE ABOUT IT WE'RE SEEING NORMAL APPRECIATION AGAIN HE SAID PEOPLE WHO BOUGHT IN THE MID80S CAN NOW SELL THERE WAS NEGATIVE EQUITY BEFORE MR SAVARESE SAID HE HAD 40 SHOWINGS ON A HOUSE A WEEK AFTER IT WENT ON THE MARKET DOUBLE WHAT HE WOULD HAVE GOTTEN A YEAR AGO HIS BIGGEST COMPLAINT NOT ENOUGH HOUSES GOING ON THE BLOCK WE'RE HAVING FUN AGAIN SAID MR SAVARESE WE'RE DOING BUSINESS SO IS GREEN CO WHICH RECENTLY TOOK NINE RESERVATIONS ON A 23HOME SITE UNDER CONSTRUCTION IN NEWTON A CLOSEIN SUBURB WITHIN TWO WEEKS OF OPENING THE PROJECT AND THAT WAS WITH NO ADVERTISING THE COMPANY LIKE MANY HERE WAS HIT HARD BY THE SLUMP IT HAD ALWAYS OWNED ITS DEVELOPMENTS BUT NOW BUILDS AND MANAGES PROPERTY FOR OTHERS PARTLY THIS IS A RESULT OF THE COMPANY'S SURVIVAL STRATEGY BUILDING HAS BEEN SO SLOW IN RECENT YEARS THAT THE COMPANY PICKED UP WORK FROM BANKS AND FINANCIERS STUCK WITH REPOSSESSED REALESTATE DEVELOPMENTS FINISHING AND MARKETING THE PROPERTIES FOR THE TITLE HOLDERS AFTER FIVE YEARS OF BREAKEVEN RESULTS VICE PRESIDENT TONY GREEN SAYS THE COMPANY IS ONCE AGAIN POSTING A PROFIT STILL MR GREEN IS CAUTIOUS WE'VE BEEN BUMPING ALONG THE BOTTOM FOR A LONG TIME HE SAID YES IT'S BETTER BUT IT'S NOT GOING TO BE THE KIND OF WORLD IT WAS BEFORE 9311170187 931117 COCOM TO DISSOLVE FORM A NEW GROUP COVERING TECHNOLOGY WASSENAAR NETHERLANDS AP COCOM THE ORGANIZATION THAT KEPT HIGH TECHNOLOGY FROM THE SOVIET BLOC DURING THE COLD WAR ANNOUNCED IT WOULD PHASE ITSELF OUT AND START A NEW GROUP TO KEEP POTENTIALLY DANGEROUS COMPONENTS FROM HIGHRISK NATIONS THE CONSIDERATIONS THAT LED TO THE ESTABLISHMENT OF COCOM 43 YEARS AGO ARE NO LONGER PRESENT SAID FRANS ENGERING OF THE NETHERLANDS CHAIRMAN OF COCOM AN ACRONYM FOR COORDINATING COMMITTEE ON MULTILATERAL EXPORT CONTROL COCOM WILL BE PHASED OUT AS SOON AS POSSIBLE BUT NOT LATER THAN MARCH 1994 HE ADDED THAT THE COUNTRIES OF EASTERN EUROPE AND THE FORMER SOVIET UNION WOULD BE ENCOURAGED TO JOIN THE NEW ORGANIZATION AFTER THE END OF THE COLD WAR COCOM BEGAN A SEARCH FOR A NEW MISSION UNDER PRESSURE FROM WESTERN TECHNOLOGY MANUFACTURERS TO ALLOW THEM TO EXPORT POWERFUL COMPUTERS AND OTHER PRODUCTS TO MARKETS IN EASTERN EUROPE AND ASIA THE SENIORLEVEL OFFICIALS FROM 15 NATO COUNTRIES PLUS JAPAN AND AUSTRALIA MEETING HERE WERE RELUCTANT TO GO INTO DETAIL ABOUT THE ROLE OF THE PLANNED NEW ORGANIZATION BUT MR ENGERING SAID THE NONPROLIFERATION POLICIES OF A PARTICULAR COUNTRY WOULD BE THE MAIN CRITERION FOR ADMISSION TO THE NEW ORGANIZATION NATO IS THE NORTH ATLANTIC TREATY ORGANIZATION ALSO IT WAS APPARENT THAT THERE WAS STILL CONCERN ABOUT TECHNOLOGY TRANSFER TO NATIONS CONSIDERED A THREAT TO THE INDUSTRIALIZED WORLD LYNN DAVIS US UNDERSECRETARY FOR INTERNATIONAL SECURITY AFFAIRS SAID IRAN IRAQ NORTH KOREA AND LIBYA ARE ON OUR MINDS AS WE PUT TOGETHER A NEW REGIME MR ENGERING SAID DISCUSSIONS WOULD SOON BE STARTED WITH RUSSIA WHICH HE SAID MIGHT BE A FOUNDING MEMBER OF THE NEW ORGANIZATION PLUS SWEDEN AUSTRIA SWITZERLAND IRELAND AND HONG KONG HE ALSO EXPRESSED THE HOPE THAT CHINA WOULD COME TO THE TALKS THE 17NATION COMMITTEE WILL MEET AGAIN HERE IN JANUARY TO COMPLETE THE DISCUSSIONS 9311170186 931117 CINCINNATI GAS & ELECTRIC DEAL CINCINNATI SHAREHOLDERS OF CINCINNATI GAS & ELECTRIC CO APPROVED A MERGER AGREEMENT WITH PSI RESOURCES INC THE COMPANY SAID 97 OF THE SHARES VOTED WERE IN FAVOR OF THE MERGER WHICH WOULD CREATE A COMBINED COMPANY CALLED CINERGY CORP THIS DEMONSTRATES THAT OUR SHAREHOLDERS SEE THE VALUE BEING CREATED WITH CINERGY AND ARE ANXIOUS TO MOVE FORWARD WITH THE MERGER SAID JACKSON H RANDOLPH CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF CINCINNATI GAS & ELECTRIC 9311170185 931117 INTERNATIONAL HONDA REGISTERS DECREASE OF 68 IN PRETAX EARNINGS BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO HONDA MOTOR CO HURT BY A STRONG YEN AND WEAK JAPANESE DEMAND FOR CARS REPORTED A 68 DROP IN CONSOLIDATED PRETAX PROFIT FOR ITS SECONDQUARTER ENDED SEPT 30 IT ALSO LOWERED ITS EARNINGS FORECAST FOR THE FULL YEAR HONDA'S CONSOLIDATED PRETAX PROFIT FOR THE QUARTER TOTALED 717 BILLION YEN 672 MILLION DOWN FROM 223 BILLION YEN A YEAR EARLIER ON SALES OF 955 BILLION YEN OFF 74 NET INCOME FELL 64 TO 324 BILLION YEN THE EARNINGS SLIDE WAS LESS SEVERE THAN MANY ANALYSTS EXPECTED HONDA'S SUCCESS AT SHORING UP ITS BOTTOM LINE IS PARTLY DUE TO THE COMPANY'S HAVING STARTED SLASHING COSTS EARLIER THAN MOST OF ITS JAPANESE COMPETITORS STILL HONDA IS SUFFERING FROM WHAT A COMPANY SPOKESMAN DESCRIBED AS EXTREMELY WEAK DEMAND FOR CARS IN JAPAN WHERE CONSUMERS ARE PINCHING THEIR YEN TO COPE WITH ONE OF THE COUNTRY'S WORST RECESSIONS IN DECADES THE STRONG YEN ALSO TOOK ITS TOLL THE YEN VALUE OF HONDA'S OVERSEAS SALES DECREASED AS THE DOLLAR AND OTHER CURRENCIES WEAKENED AGAINST THE JAPANESE CURRENCY MORE THAN OFFSETTING AN INCREASE IN THE NUMBER OF CARS SOLD IN SOME MARKETS HONDA'S TOTAL AUTO SALES IN THE LATEST QUARTER ROSE 36 FROM A YEAR EARLIER TO 460000 UNITS WHILE REVENUE FROM AUTO SALES DECLINED 87 TO 7507 BILLION YEN HONDA SEES LITTLE HOPE FOR A TURNAROUND SOON THE COMPANY LOWERED ITS FORECAST FOR CONSOLIDATED NET INCOME FOR THE YEAR ENDING MARCH 31 1994 TO 173 BILLION YEN LAST MAY HONDA FORECAST NET INCOME OF 23 BILLION YEN FOR THE YEAR TO COPE WITH THE GRIM OUTLOOK HONDA HAS ALREADY ANNOUNCED A NUMBER OF COSTCUTTING MEASURES THE COMPANY SAID IT WILL TRIM 3000 JOBS FROM ITS WORK FORCE OVER THE NEXT THREE YEARS AND TO COPE WITH THE STRONG YEN HONDA WILL SHIFT ALL PRODUCTION OF ITS CIVIC AND ACCORD MODELS SOLD IN THE US TO FACTORIES IN NORTH AMERICA FOR THE FIRST HALF ENDED SEPT 30 HONDA POSTED CONSOLIDATED PRETAX PROFIT OF 225 BILLION YEN DOWN 60 FROM 565 BILLION A YEAR EARLIER CONSOLIDATED FIRSTHALF SALES TOTALED 187 TRILLION YEN DOWN 125 HONDA'S CONSOLIDATED NET INCOME DROPPED 63 IN THE HALF TO 93 BILLION YEN 9311170184 931117 WENDY'S PLANS DEBT REDEMPTION DUBLIN OHIO WENDY'S INTERNATIONAL INC SAID IT WILL REDEEM ALL OF ITS 725 CONVERTIBLE SUBORDINATED DEBENTURES DUE DEC 1 2010 THE REDEMPTION PRICE WILL BE 10145 OF PRINCIPLE PLUS ACCRUED INTEREST THE REDEMPTION DATE IS DEC 14 THE DEBENTURES ARE CONVERTIBLE INTO COMMON SHARES OF THE FASTFOOD RESTAURANT OPERATOR UNTIL CLOSE OF BUSINESS DEC 14 AT THE CONVERSION PRICE OF 1744 A SHARE THE REDEMPTION AND CONVERSION AGENT IS MORGAN GUARANTY TRUST CO 9311170183 931117 LAW LEGAL BEAT MILITARY'S BAN ON GAYS IS STRUCK DOWN BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL APPEALS COURT RULED THAT IT IS UNCONSTITUTIONAL TO BAN HOMOSEXUALS FROM THE MILITARY SIMPLY BECAUSE OF THEIR SEXUAL ORIENTATION THE INFLUENTIAL APPEALS COURT IN WASHINGTON DC SAID THE MILITARY'S RELUCTANCE TO ALLOW LESBIANS AND GAYS TO SERVE STEMS FROM PREJUDICE IN THE PAST FEDERAL APPEALS COURTS HAVE DEFERRED TO THE MILITARY ON THE ISSUE THE CASE DIDN'T INVOLVE THE CLINTON ADMINISTRATION'S COMPROMISE POLICY KNOWN AS DON'T ASK DON'T TELL WHICH WAS ANNOUNCED IN JULY AND ALLOWS HOMOSEXUALS TO SERVE SO LONG AS THEY DON'T DISCLOSE THEIR SEXUAL ORIENTATION BUT BECAUSE THE CASE INVOLVED A SOLDIER WHO SAID HE WAS GAY BUT WAS NEVER ACCUSED OF ANY MISCONDUCT IT RAISES QUESTIONS ABOUT WHETHER EVEN THAT LESSRESTRICTIVE POLICY WOULD PASS MUSTER IN THE COURTS A SPOKESWOMAN FOR THE DEFENSE DEPARTMENT SAID THE DECISION IS BEING REVIEWED TO DETERMINE HOW IT WILL AFFECT CURRENT POLICY SEVERAL OTHER CASES PENDING AROUND THE COUNTRY ARE CHALLENGING THE NEW POLICY IN ITS DECISION YESTERDAY THE APPEALS COURT SAID THAT BANNING HOMOSEXUALS FROM THE MILITARY VIOLATES THE CONSTITUTION'S EQUALPROTECTION PROVISION THE COURT ORDERED THE MILITARY TO REINSTATE JOSEPH STEFFAN A US NAVAL ACADEMY STUDENT WHO WAS FORCED OUT IN 1987 JUST SIX WEEKS BEFORE HIS GRADUATION THE COURT ORDERED THE MILITARY TO COMMISSION MR STEFFAN AS AN OFFICER NOTING THAT HE HAD BEEN ONE OF THE 10 HIGHEST RANKING MIDSHIPMEN AT THE ACADEMY AND HAD A CAREER UNTARNISHED BY EVEN A SCINTILLA OF MISCONDUCT THE PENTAGON DIRECTIVES THAT BANNED GAY SOLDIERS ARE NOT RATIONALLY RELATED TO ANY LEGITIMATE GOAL THE THREEJUDGE PANEL SAID INSTEAD IT IS APPARENT THAT THE DIRECTIVES EXCLUDE A PARTICULAR CLASS OF INDIVIDUALS IDENTIFIABLE ONLY BY THEIR THOUGHTS AND DESIRES FOR NO OTHER REASON THAN THE MILITARY'S FEAR AND DISLIKE OF THAT GROUP THE COURT REJECTED MANY OF THE SAME ARGUMENTS FOR THE BAN MADE AT RECENT CONGRESSIONAL HEARINGS ON THE ISSUE SUCH AS THE IMPACT ON MORALE AND HETEROSEXUAL SOLDIERS' WORRIES ABOUT PRIVACY BOTH HOUSES OF CONGRESS RECENTLY PASSED LEGISLATION THAT WOULD MAKE THE MILITARY'S PREVIOUS BAN INTO LAW BUT THE BILL HASN'T YET BEEN SENT TO PRESIDENT CLINTON MR STEFFAN CURRENTLY IN HIS THIRD YEAR OF LAW SCHOOL AT THE UNIVERSITY OF CONNECTICUT SAID HE WAS PREPARED TO RETURN TO SERVICE IMMEDIATELY A NUMBER OF MY FORMER CLASSMATES FROM ANNAPOLIS CALLED ME TODAY TO CONGRATULATE ME THE 29YEAROLD SAID MR STEFFAN'S ATTORNEY MARC WOLINSKY A PARTNER AT NEW YORK LAW FIRM WACHTELL LIPTON ROSEN & KATZ SAID THE US GOVERNMENT COULD ASK FOR A REHEARING BEFORE THE FULL APPEALS COURT OR SEEK TO TAKE THE MATTER TO THE US SUPREME COURT A JUSTICE DEPARTMENT OFFICIAL SAID THE ADMINISTRATION HASN'T DETERMINED WHAT ACTION TO TAKE AND PROBABLY WON'T DECIDE FOR AT LEAST A FEW DAYS THE COURT IS SAYING THAT IT IS SIMPLY UNAMERICAN TO PUNISH PEOPLE FOR THEIR DESIRES THEIR THOUGHTS AND THEREFORE THEIR ORIENTATION RATHER THAN THEIR CONDUCT SAID EVAN WOLFSON AN ATTORNEY FOR LAMBDA LEGAL DEFENSE AND EDUCATION FUND WHICH ALSO REPRESENTED MR STEFFAN SEN DAN COATS R IND WHO OPPOSES EFFORTS TO ALLOW GAYS TO SERVE IN THE MILITARY SAID THE COURT SHOULD HAVE RULED THAT HOMOSEXUALITY IS INCOMPATIBLE WITH MILITARY SERVICE HE CITED THE CONGRESSIONAL HEARINGS EARLIER THIS YEAR AT WHICH MANY HETEROSEXUAL MEMBERS OF THE MILITARY TESTIFIED THAT THEY WOULD BE UNCOMFORTABLE SERVING ALONGSIDE GAYS AND LESBIANS WE HAVE AN EXTENSIVE BODY OF TESTIMONY TO PROVIDE A RATIONAL BASIS TO CONCLUDE THAT THE DECLARATION OF HOMOSEXUAL STATUS IS SOMETHING THAT GIVES THE MILITARY CAUSE TO SAY THIS ISN'T COMPATIBLE WITH MILITARY SERVICE THE COURTS HAVE LONG DEFERRED TO MILITARY JUDGMENT IN QUESTIONS LIKE THIS ALLOWING HOMOSEXUALS IN THE MILITARY HE SAID WOULD ERODE MORALE AND JEOPARDIZE UNIT COHESION THE APPEALS COURT HOWEVER SAID THE PREJUDICES OF OTHER PEOPLE CAN'T BE USED TO JUSTIFY DISCRIMINATION AGAINST A PARTICULAR GROUP BECAUSE THIRD PARTIES DO NOT LIKE HOMOSEXUALS THE ARGUMENT RUNS THEY WILL NOT WISH TO SERVE ALONGSIDE THEM SIMILAR OBJECTIONS WERE VOICED BY OPPONENTS OF PRESIDENT TRUMAN'S 1948 EXECUTIVE ORDER REQUIRING RACIAL INTEGRATION OF THE ARMED FORCES THE COURT SAID STEFFAN VS LES ASPIN ET AL US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT 915409 WHEN THE SECURITIES AND EXCHANGE COMMISSION IS SEEKING YOUR ASSETS STATELAW PROTECTIONS FOR DEBTORS DON'T APPLY A FEDERAL APPEALS COURT RULED THE RULING ELIMINATES ONE LOOPHOLE THAT PEOPLE SOUGHT TO USE TO AVOID PAYING MONEY OWED UNDER SEC SETTLEMENTS THE RULING BY A FEDERAL APPEALS COURT IN NEW ORLEANS IS AMONG THE FIRST TO ADDRESS THE ISSUE AT THE APPELLATE LEVEL THE CASE INVOLVED A 1990 FEDERAL LAW ALLOWING PEOPLE TO TAKE REFUGE FROM DEBT COLLECTORS IN SOME CIRCUMSTANCES THAT ARE COVERED BY STATE DEBTORPROTECTION LAWS A TEXAS BUSINESSMAN WHO HAD BEEN ORDERED BY A COURT TO PAY 219000 AS PART OF AN SEC CIVIL SETTLEMENT SAID HE HAD NO SUBSTANTIAL ASSETS EXCEPT HIS 250000 HOME UNDER THE LAWS OF SOME STATES INCLUDING TEXAS AND FLORIDA DEBTORS CAN HOLD ONTO THEIR HOMES REGARDLESS OF THE HOMES' VALUES EVEN IF THEY MUST SELL OTHER ASSETS TAKING THE TEXAS LAW INTO ACCOUNT A LOWER COURT SAID THE MAN DIDN'T HAVE TO PAY THE MONEY BUT AN APPEALSCOURT PANEL SAID A FINANCIAL OBLIGATION ARISING FROM AN SEC LAWSUIT IS NOT A DEBT UNDER THE FEDERAL LAW THE COURT ADDED THAT IT MAKES NO DIFFERENCE WHETHER THE OBLIGATION COMES FROM A SETTLEMENT OR FROM LOSING A COURT BATTLE THE COURT SENT THE CASE BACK TO THE LOWER COURT THE BUSINESSMAN WILLIAM B CLARK FORMER PRESIDENT OF AMX INTERNATIONAL INC DALLAS COULDN'T BE REACHED FOR COMMENT ON WHETHER HE WILL SEEK A REHEARING BEFORE THE FULL APPEALS COURT MR CLARK WHO REPRESENTED HIMSELF IN THE APPEAL NEITHER ADMITTED NOR DENIED WRONGDOING AS PART OF THE 1990 SETTLEMENT OF A CIVIL SECURITIES CASE JUNDA WOO CONTRIBUTED TO THIS ARTICLE 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 9311170182 931117 SUNDSTRAND BUYS BACK SHARES ROCKFORD ILL SUNDSTRAND CORP EXPANDED ITS STOCK REPURCHASE PLAN TO 10 MILLION SHARES FROM THE FOURMILLIONSHARE PROGRAM ANNOUNCED IN FEBRUARY THE AEROSPACE PARTS MAKER SAID THE PURCHASE OF 22 MILLION OF ITS SHARES HAS REDUCED COMMON STOCK OUTSTANDING TO 345 MILLION SHARES SUNDSTRAND SAID IT WILL USE A VARIETY OF METHODS TO REPURCHASE ITS SHARES FROM TIME TO TIME 9311170181 931117 NATIONAL HOME CENTERS LOAN SPRINGDALE ARK NATIONAL HOME CENTERS INC SAID IT SIGNED A LOAN AGREEMENT WITH FIRST TENNESSEE BANK NATIONAL ASSOCIATION MEMPHIS TENN FOR A 25 MILLION 18MONTH UNSECURED CREDIT LINE THE RETAILER OF HOMEIMPROVEMENT PRODUCTS AND BUILDING MATERIALS SAID IT PLANS TO USE THE CREDIT LINE TO FINANCE AN EXPANSION INCLUDING ADDING THREE OR FOUR ADDITIONAL HOMECENTER SUPERSTORES THE COMPANY SAID IT WILL PAY INTEREST ON THE CREDIT LINE AT A VARIABLE RATE BASED ON THE LONDON INTERBANK OFFERED RATE PLUS 210 BASIS POINTS WHICH WAS ABOUT 519 AS OF OCT 31 9311170180 931117 WHO'S NEWS DUFF & PHELPS CORP DUFF & PHELPS CORP CHICAGO DAVID A WILLIAMS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BEUTEL GOODMAN & CO OF CANADA WAS ELECTED A DIRECTOR OF THIS CLOSEDEND INVESTMENT FUND FILLING A VACANCY THERE ARE 11 BOARD MEMBERS 9311170179 931117 MARKETING & MEDIA FREEDOM NEWSPAPERS' NAME IRVINE CALIF FREEDOM NEWSPAPERS INC CLOSELY HELD PUBLISHER OF 26 DAILY NEWSPAPERS INCLUDING CALIFORNIA'S ORANGE COUNTY REGISTER SAID IT CHANGED ITS NAME TO FREEDOM COMMUNICATIONS INC REFLECTING THE COMPANY'S DIVERSIFIED BUSINESS IN ADDITION TO NEWSPAPERS FREEDOM OWNS FIVE NETWORKAFFILIATED TELEVISION STATIONS AND OTHER INTERESTS 9311170178 931117 WHO'S NEWS SONY CORP SONY CORP TOKYO MARY ELLEN CATANEO 38 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT FOR COMMUNICATIONS AT THE SONY MUSIC ENTERTAINMENT UNIT OF THIS CONSUMER ELECTRONICS AND ENTERTAINMENT CONCERN MS CATANEO HAD BEEN VICE PRESIDENT PUBLICITY AT COLUMBIA RECORDS 9311170177 931117 RAWSTEEL PRODUCTION ROSE 32 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 32 LAST WEEK TO 1893000 TONS FROM 1834000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 11 FROM THE 1711000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 90 OF ITS CAPABILITY LAST WEEK COMPARED WITH 872 THE PREVIOUS WEEK AND 791 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9311170176 931117 PURITANBENNETT UNIT'S ORDER OVERLAND PARK KAN PURITANBENNETT CORP SAID ITS RECENTLY ACQUIRED AIRBORNE CLOSED CIRCUIT TELEVISION OPERATION RECEIVED A 29 MILLION ORDER FROM MCDONNELL DOUGLAS CORP TO SUPPLY A VIDEO SYSTEM FOR THE C17 A NEW MILITARYTRANSPORT AIRCRAFT THE ORDER COVERS THE DEVELOPMENT PROGRAM AND EQUIPMENT FOR THE FIRST 29 AIRCRAFT THROUGH FEBRUARY 1996 THE SYSTEM WILL BE USED TO MONITOR PARACHUTE DEPLOYMENTS FROM THE REAR CARGO DOOR 9311170175 931117 ARGUS SELLS 25 MILLION SHARES HOUSTON ARGUS PHARMACEUTICALS INC SAID IT SOLD 25 MILLION SHARES OF COMMON STOCK AT 450 A SHARE THE COMPANY SAID IT WILL USE PROCEEDS OF ABOUT 102 MILLION FOR PRECLINICAL AND CLINICAL TESTING OF ARGUS'S PRODUCT CANDIDATES CONTINUED RESEARCH AND DEVELOPMENT CAPITAL EXPENDITURES AND GENERAL CORPORATE PURPOSES ARGUS WHICH DEVELOPS DRUGS FOR CANCER AND INFECTIOUS DISEASES SAID IT HAS 99 MILLION SHARES OUTSTANDING AFTER THE OFFERING UNDERWRITERS WERE LED BY SG WARBURG & CO AND KIDDER PEABODY & CO 9311170174 931117 HIGH PLAINS FUNDS FACILITY WICHITA KAN HIGH PLAINS CORP SAID IT COMPLETED FINANCING FOR AN ETHANOL PRODUCTION FACILITY BEING BUILT IN YORK NEB THE ETHANOL CONCERN SAID IT ACQUIRED A 25 MILLION CONSTRUCTION LOAN FROM A GROUP OF BANKS LED BY BANK ONEINDIANAPOLIS THE CONSTRUCTION LOAN WILL CONVERT TO A MORTGAGE WHEN THE PLANT BEGINS OPERATING HIGH PLAINS SAID THE FACILITY WHICH HAS AN ANNUAL CAPACITY OF 30 MILLION GALLONS IS SET TO BEGIN OPERATIONS JULY 1 1994 ETHANOL IS USED AS A GASOLINE ADDITIVE TO REDUCE POLLUTION 9311170173 931117 TREASURY BILL OFFERING IS PLANNED TO RAISE 303 BILLION IN CASH WASHINGTON THE TREASURY PLANS TO RAISE 303 BILLION IN CASH WITH THE SALE MONDAY OF ABOUT 276 BILLION IN SHORTTERM BILLS TO REDEEM 2458 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING FEB 24 1994 AND MAY 26 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794J21 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794K78 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9311170172 931117 RULE OF LAW WAR POWERS RESOLUTION REDUX BY TERRY EASTLAND IN THE WAKE OF FOREIGN POLICY DEBATES BETWEEN CONGRESS AND THE ADMINISTRATION OVER SOMALIA BOSNIA AND HAITI SENATE DEMOCRATS ADMITTING THE INEFFECTIVENESS OF THE WAR POWERS RESOLUTION SAY THEY WILL WRITE A LAW TO TAKE ITS PLACE LIKE THE CURRENT LAW ANY NEW LAW THEY SAY WOULD OFFER A GENERAL RULE TO GOVERN EVERY DEPLOYMENT OF US TROOPS ABROAD AND ESTABLISH THE PRECISE ROLE OF CONGRESS IN MAKING SUCH DECISIONS WAR POWERS II HOWEVER IS LIKELY TO PROVE JUST AS INEFFECTIVE AS WAR POWERS I THE REASON IS THE CONSTITUTION PASSED OVER PRESIDENT NIXON'S VETO IN 1973 THE WAR POWERS RESOLUTION SAYS THE PRESIDENT MAY INTRODUCE ARMED FORCES INTO HOSTILITIES OR IMMINENT HOSTILITIES ONLY WHEN CONGRESS HAS DECLARED WAR OR PROVIDED SPECIFIC STATUTORY AUTHORIZATION OR IN THE EVENT OF AN ATTACK UPON THE US OR ITS ARMED FORCES BEFORE TAKING MILITARY ACTION THE PRESIDENT IS TOLD IN EVERY POSSIBLE INSTANCE TO CONSULT WITH CONGRESS ONCE HE DOES TAKE MILITARY ACTION THE PRESIDENT IS REQUIRED WITHIN 48 HOURS TO SUBMIT A REPORT TO CONGRESS EXPLAINING THE GROUND OF HIS DECISION AND ITS LEGAL AUTHORITY AND STATING THE SCOPE AND LENGTH OF THE HOSTILITIES THIS REPORT TRIGGERS A CLOCK BY WHICH THE PRESIDENT IS TO TERMINATE THE USE OF TROOPS WITHIN 60 DAYS UNLESS CONGRESS PROVIDES AUTHORIZATION OR PUTS MORE TIME ON THE CLOCK SINCE 1973 PRESIDENTS OF BOTH PARTIES HAVE ACTED IN WAYS THAT EFFECTIVELY NULLIFY THE RESOLUTION REJECTING ITS UNDERSTANDING OF THE SCOPE OF EXECUTIVE AUTHORITY THEY HAVE DEPLOYED FORCES IN SITUATIONS THE RESOLUTION DOES NOT PROVIDE FOR IN NOTIFYING CONGRESS OF THEIR USE OF TROOPS ABROAD THEY HAVE AVOIDED LANGUAGE THAT COULD BE UNDERSTOOD TO ACCEPT THE RESOLUTION'S CONSTITUTIONALITY PRESIDENTS ROUTINELY SAY THEY ACT CONSISTENT WITH NOT IN COMPLIANCE WITH OR PURSUANT TO THE RESOLUTION IN LETTERS PROVIDING INFORMATION ABOUT TROOP DEPLOYMENTS PRESIDENTS HAVE SEEDED AMBIGUITY AS TO WHETHER THEY HAVE SET OFF THE 60DAY CLOCK CONGRESSMEN SUING TO HAVE SUCH LETTERS DECLARED RESOLUTIONTRIGGERING EVENTS HAVE STRUCK OUT IN COURT WHAT THE WAR POWERS RESOLUTION HAS ACHIEVED HOWEVER IS A BIT MORE INTERBRANCH CONSULTATION OVER THE PRESIDENT'S DEPLOYMENT OF TROOPS ABROAD BUT ANY EFFORT TO SUPPLY A NEW FRAMEWORK BY WHICH THE PRESIDENT AND CONGRESS ARE TO AGREE IN ADVANCE ON THE USE OF TROOPS INEVITABLY WILL FACE THE QUESTION OF HOW IT IS TO BE ENFORCED ONE IDEA IS TO GIVE ONE OR MORE MEMBERS OF CONGRESS STANDING TO SUE TO START THE 60DAY CLOCK LEAVING TO ONE SIDE THE FACT THAT THE SUPREME COURT HAS NEVER RECOGNIZED CONGRESSIONAL STANDING THE COURTS ARE UNLIKELY FOR OTHER REASONS TO ENTERTAIN SUCH LAWSUITS JUDGES ARE LIKELY TO SAY THE DISPUTE IS A POLITICAL QUESTION AND THUS NOT FOR THE COURTS TO DECIDE IF CONGRESS WANTS A NEW WAR POWERS ARRANGEMENT IT IS NOT LEGISLATION BUT A CONSTITUTIONAL AMENDMENT IT WILL HAVE TO SEEK ONE THAT MAKES CONGRESS COMMANDERINCHIEF AND OTHERWISE EQUIPS IT CONSTITUTIONALLY TO ASSUME COMPLETE EXECUTIVE AUTHORITY FOR THE NATION THIS OF COURSE WILL NEVER HAPPEN THE KIND OF INTERBRANCH BACKANDFORTH THAT RESULTS FROM THE CONSTITUTION'S DIVISION OF THE WAR POWERS CAN AFFECT SPECIFIC OUTCOMES AND DID SO IN THE CASES AT HAND MR CLINTON'S FOREIGN POLICY IN BOSNIA SOMALIA AND HAITI CLEARLY HAS BEEN INFLUENCED BY CONGRESSIONAL VIEWS REGARDING THE USE OF FORCE INDEED IN SOMALIA IN PARTICULAR THE BACKANDFORTH PRODUCED AN AGREEMENT THE FIRST SUCH AGREEMENT SINCE THE VIETNAM ERA BY WHICH THE PRESIDENT WILL WITHDRAW TROOPS BY MARCH 31 ACCORDINGLY THE REAL ISSUE REGARDING WAR POWERS IS NOT WHETHER LEGISLATION CAN BE ENACTED THAT CAN ACTUALLY GOVERN FUTURE SITUATIONS BUT HOW THE BRANCHES IN A SPECIFIC CONTEXT WILL ACT IN SPECIFIC WAYS TO PROTECT THEIR RESPECTIVE INTERESTS AND CARRY OUT THEIR CONSTITUTIONAL DUTIES ON BOSNIA SOMALIA AND HAITI A CONGRESS CONCERNED ABOUT A PRESIDENT'S OFTEN INCOHERENT FOREIGN POLICY HAS EXPRESSED ITS VIEWS WHAT IS UNKNOWN IS WHETHER MR CLINTON IS A PRESIDENT WHO CAN ACT ENERGETICALLY IN THE NATION'S BEHALF IF THE OCCASION ARISES HERE THE GREAT EXAMPLE OF PRESIDENT BUSH IS RELEVANT WHEN SADDAM HUSSEIN INVADED KUWAIT ON AUG 2 1990 PRESIDENT BUSH USED AVAILABLE EXECUTIVE POWER TO FREEZE IRAQI ASSETS IN THE US CONDUCT DIPLOMACY OF VARIOUS KINDS DEPLOY TROOPS TO SAUDIA ARABIA CALL UP THE RESERVES AND DOUBLE THE DEPLOYMENT OF THE TROOPS SOME OF THESE ACTIONS WERE UNPOPULAR AT THE TIME AND THROUGHOUT THE PERIOD FROM AUGUST TO JANUARY MEMBERS OF CONGRESS HAD OTHER IDEAS ABOUT HOW THE PRESIDENT SHOULD RESPOND TO THE INVASION ONLY IN EARLY JANUARY DID IT APPEAR POSSIBLE THAT CONGRESS MIGHT APPROVE A RESOLUTION AUTHORIZING FORCE MR BUSH WAS WRONG TO THINK THAT FOR THE KIND OF ENGAGEMENT SOON TO UNFOLD HE DID NOT NEED CONGRESSIONAL AUTHORIZATION HE CHARACTERIZED THE DEPLOYMENT OF US TROOPS AS A SUPPORTING MEASURE BUT THE VOTE HE WON FROM CONGRESS RESULTED FROM HIS IMPRESSIVE UNILATERAL USE OF AVAILABLE POWER IN THE PRECEDING MONTHS ALEXANDER HAMILTON WOULD HAVE UNDERSTOOD EXACTLY WHAT MR BUSH DID WRITING IN 1793 HAMILTON RECOGNIZED WHAT HE CALLED THE RIGHT OF THE EXECUTIVE IN CERTAIN CASES TO DETERMINE THE CONDITION OF THE NATION AND THAT THE CONSEQUENCES OF HIS DOING SO MAY AFFECT THE EXERCISE OF THE POWER OF THE LEGISLATURE TO DECLARE WAR WHILE NOTING THAT THE EXECUTIVE CANNOT THEREBY CONTROL THE EXERCISE OF THIS POWER AND THAT CONGRESS IS STILL FREE TO PERFORM ITS DUTIES ACCORDING TO ITS SENSE OF THEM HAMILTON WROTE THAT THE EXECUTIVE'S EXERCISE OF HIS CONSTITUTIONAL POWERS MAY ESTABLISH AN ANTECEDENT STATE OF THINGS WHICH OUGHT TO WEIGH IN THE LEGISLATIVE DECISION IN THE SERIES OF ACTIONS HE TOOK AFTER SADDAM INVADED KUWAIT MR BUSH ESTABLISHED JUST SUCH AN ANTECEDENT STATE OF THINGS WHICH PLAINLY INFLUENCED CONGRESS'S VOTE TO AUTHORIZE TROOPS WHILE ONE MAY SPECULATE ABOUT WHAT MR CLINTON WOULD HAVE DONE HAD HE BEEN IN OFFICE ON AUG 2 1990 THE IMPORTANT QUESTION IS WHETHER HE CAN ACT IF THE SITUATION DEMANDS IT AS MR BUSH DID UNDER THE CONSTITUTION BOTH THE CONGRESS AND THE PRESIDENT HAVE ROLES TO PLAY ON MATTERS OF WAR BUT THE EXTENT OF THOSE ROLES CAN VARY ACCORDING TO THE POLITICAL RESOURCES AND WILL OF THE OFFICEHOLDERS ONE MUST HOPE THAT THIS PRESIDENT WILL BE AS STRONG AS HIS PREDECESSOR IF AN OCCASION ARISES FOR THE KIND OF SERVICE THE EXECUTIVE OFFICE IS UNIQUELY EMPOWERED TO PROVIDE AFTER ALL UNDER THE CONSTITUTION THERE WILL BE NO ONE ELSE TO COMMAND THE TROOPS 9311170171 931117 CMS ENERGY'S NOMECO OIL UNIT DEARBORN MICH CMS ENERGY CORP SAID THAT ITS NOMECO OIL & GAS CO UNIT WILL TEAM UP WITH TWO AUSTRALIAN COMPANIES TO ACQUIRE PECTEN YEMEN CO AN AFFILIATE OF SHELL OIL CO TERMS OF THE ACQUISITION WEREN'T DISCLOSED PECTEN YEMEN IS INVOLVED IN OIL EXPLORATION IN THE EAST SHAWBA CONTRACT AREA IN YEMEN'S MASILA BLOCK NOMECO WILL OWN 15 OF THE NEWLY FORMED COMPANY SHELL OIL IS THE US UNIT OF ROYAL DUTCH/SHELL GROUP WHICH IS BASED IN THE NETHERLANDS 9311170170 931117 INTERNATIONAL BRITAIN'S FINANCIAL DEFICIT LONDON BRITAIN'S PUBLIC SECTOR BORROWING REQUIREMENT OR FINANCIAL DEFICIT THE MOST WIDELY USED MEASURE OF THE GOVERNMENT'S FINANCES TOTALED 272 BILLION 405 BILLION IN OCTOBER COMPARED WITH A REVISED 587 BILLION IN SEPTEMBER THE TREASURY AND CENTRAL STATISTICAL OFFICE SAID IN A JOINT STATEMENT THE RESULT COMPARES WITH MARKET EXPECTATIONS FOR A DEFICIT OF 23 BILLION IN OCTOBER IN THE FIRST SEVEN MONTHS OF THE YEAR THAT BEGAN APRIL 1 THE DEFICIT TOTALED 269 BILLION COMPARED WITH A DEFICIT OF 20 BILLION A YEAR EARLIER 9311170169 931117 INTERNATIONAL FEDERAL EXPRESS PICKS OLD SUBIC BAY BASE FOR FREIGHT CENTER MANILA PHILIPPINES FEDERAL EXPRESS CORP PLANS TO OPEN AN AIRFREIGHT TRANSSHIPMENT CENTER AT SUBIC BAY PROVIDING A BOOST TO THE PHILIPPINES'S PLANS TO TRANSFORM THE FORMER US MILITARY BASE INTO A COMMERCIAL AND INDUSTRIAL CENTER THE FACILITY WHICH THE MEMPHIS TENNBASED COMPANY SAID IT EXPECTS TO OPEN IN THE NEXT 18 MONTHS WILL HANDLE THREE TO FIVE WIDEBODYJET FLIGHTS DAILY IN THE FIRST YEAR OF OPERATION MOSTLY FROM OTHER ASIAN CITIES FEDERAL EXPRESS SAID IT EXPECTS TO HIRE FEWER THAN 100 PEOPLE IN THE FIRST YEAR SUBIC BAY HAS ATTRACTED A NUMBER OF LIGHTMANUFACTURING FIRMS MOSTLY GARMENT MAKERS FOLLOWING THE CLOSING OF A US MILITARY BASE THERE HOWEVER IT HAS LACKED MAJOR TRANSPORTATION LINKS WITH OTHER COUNTRIES THE BASE WAS ONCE THE US'S LARGEST OVERSEAS THE AGREEMENT WITH FEDERAL EXPRESS WILL SERVE TO ATTRACT MORE BUSINESSES THAT ARE DEPENDENT ON AIR CARGO AND AIR FREIGHT SAID RODOLFO REYES SUBIC BAY DEPUTY ADMINISTRATOR OFFICIALS SAY A NUMBER OF ISSUES STILL MUST BE NEGOTIATED INCLUDING IMPROVEMENTS TO A FORMER NAVY AIRFIELD CARVED OUT OF A MOUNTAIN AND CAPABLE OF HANDLING BOEING 747 JETS 9311170168 931117 CANADIAN GOVERNMENT SAYS DEFICIT WIDENED IN THE FISCAL FIRST HALF OTTAWA THE CANADIAN GOVERNMENT REPORTED AN INCREASE IN ITS BIG BUDGET DEFICIT MAINLY AS A RESULT OF SLOW ECONOMIC GROWTH FOR APRIL THROUGH SEPTEMBER WHICH IS THE FIRST HALF OF THE GOVERNMENT'S FISCAL YEAR THE DEFICIT TOTALED 2074 BILLION CANADIAN DOLLARS US1571 BILLION A YEAR EARLIER THE DEFICIT TOTALED C1857 BILLION FINANCE MINISTER PAUL MARTIN TOLD REPORTERS THAT ECONOMIC WEAKNESS IS THE ROOT CAUSE OF THE DEFICIT PROBLEM AS A RESULT OF THE WEAKNESS THE GOVERNMENT'S REVENUE IN THE APRILSEPTEMBER PERIOD FELL 64 FROM ITS YEAREARLIER LEVEL MR MARTIN SAID THE NEW LIBERAL PARTY GOVERNMENT WHICH TOOK OFFICE NOV 4 WAS DETERMINED TO REDUCE THE BUDGET DEFICIT WE ARE CLEARLY GOING TO HAVE TO LOOK LINE BY LINE AT ALL GOVERNMENT EXPENDITURES HE SAID BUT HE SAID THE GOVERNMENT ALSO PLANS SPENDING MEASURES TO CREATE JOBS AND PROVIDE HOPE CANADA'S UNEMPLOYMENT RATE IS CURRENTLY 111 MR MARTIN SAID THE LIBERALS WILL INTRODUCE THEIR FIRST BUDGET IN THE FIRSTQUARTER OF 1994 THE LIBERALS WON THE OCT 25 ELECTION REPLACING THE PROGRESSIVE CONSERVATIVE PARTY WHICH GOVERNED FOR THE PAST NINE YEARS THE MINISTER SAID THE GOVERNMENT'S BUDGET DEFICIT FOR THE 1993 FISCAL YEAR ENDED MARCH 31 TOTALED A RECORD C405 BILLION THE DEFICIT WAS BIGGER THAN EXPECTED PARTLY BECAUSE OF A WRITEDOWN OF CERTAIN GOVERNMENT INVESTMENTS AND LOANS 9311170167 931117 WORLD STOCK INDEX RECALCULATION NEW YORK A DATA ERROR INVOLVING A BRITISH COMPANY WAS CORRECTED IN THE DOW JONES WORLD STOCK INDEX RESULTING IN A RECALCULATION OF THE INDEX SERIES THE NEW INDEX NUMBERS APPEAR IN TODAY'S EDITION OF THE WALL STREET JOURNAL THE CHANGES AFFECT INDEXES FOR THE UNITED KINGDOM AND THE FINANCIAL SERVICES INDUSTRY GROUP AND FINANCIAL SECTOR FOR THE WORLD AND FOR EUROPE THE WORLD INDEX ITSELF WAS MINIMALLY AFFECTED THE WORLD INDEX CLOSED MONDAY IN US DOLLAR TERMS AT 11101 RATHER THAN 11112 AS ORIGINALLY REPORTED A 01 DIFFERENCE 9311170166 931117 BIG BOARD NEW LISTINGS RECORD NEW YORK THE NEW YORK STOCK EXCHANGE WITH 252 NEW LISTINGS IN THE YEAR'S FIRST 10 1/2 MONTHS SET A ONEYEAR RECORD FOR NEW LISTINGS FOR THE THIRD CONSECUTIVE YEAR THE BIG BOARD SAID THE NEW LISTINGS INCLUDE 167 INITIAL PUBLIC OFFERINGS 50 TRANSFERS FROM OTHER MARKETS 29 NONUS COMPANIES AND SIX SPINOFFS THE BIG BOARD HAD 251 NEW LISTINGS IN 1992 AND 162 IN 1991 9311170165 931117 EDS VENTURE WITH 2 PHONE COMPANIES TO SELL INTERACTIVE BANKING SERVICES TWO TELEPHONE COMPANIES AND ELECTRONIC DATA SYSTEMS CORP ARE PLANNING THE LATEST EFFORT TO SELL INTERACTIVE BANKING SERVICES TO CONSUMERS AND SMALL BUSINESSES U S WEST MARKETING RESOURCES A UNIT OF REGIONAL TELEPHONE COMPANY U S WEST INC OF DENVER GENERAL MOTORS CORP'S EDS AND FRANCE TELECOM INTELMATIQUE THE INTERACTIVE SERVICES DIVISION OF FRANCE TELECOM TODAY ARE EXPECTED TO ANNOUNCE THE NEW VENTURE CALLED INTERACTIVE TRANSACTION PARTNERS THE VENTURE WILL SELL ITS SERVICES TO FINANCIAL INSTITUTIONS RETAILERS AND MAJOR BILLERS LIKE AMERICAN EXPRESS CORP WHICH IN TURN WILL MARKET THEM UNDER THEIR OWN PRIVATE LABELS THE PARTNERSHIP IS TO BE ANNOUNCED AT THE RETAIL DELIVERY SYSTEMS CONFERENCE IN NEW ORLEANS A NUMBER OF COMPANIES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO HAVE TRIED TO DEVELOP THE HOMEBANKING MARKET WITH LIMITED SUCCESS LAST WEEK AMERITECH CORP AND CITIBANK SAID THEY PLAN TO OFFER HOME BANKING AND OTHER SERVICES VIA SCREEN PHONES TO CONSUMERS IN THE CHICAGO AREA THE NEW VENTURE'S INITIAL SERVICES TO BE AVAILABLE IN APRIL WILL INCLUDE TRADITIONAL HOMEBANKING SERVICES LIKE FUNDS TRANSFER AND BILL PAYMENT THEY ALSO WILL ALLOW USERS TO REVIEW THE ENTIRE BILL TEXT AS OPPOSED TO JUST A SUMMARY OF CHARGES AS IS TYPICAL WITH MANY HOMEBANKING SERVICES SAID BOB GRANT VICE PRESIDENT OF NEW PRODUCTS AND VENTURES FOR U S WEST MARKETING RESOURCES CUSTOMERS WILL HAVE THE OPTION OF RECEIVING SERVICES THROUGH THEIR TOUCHTONE TELEPHONE PERSONAL COMPUTER AND MODEM OR MINITEL TERMINAL A GLORIFIED PHONE THAT LOOKS LIKE A COMPUTER IN THE FUTURE THE SERVICES ARE EXPECTED TO BE AVAILABLE THROUGH INTERACTIVE TELEVISIONS AND BY SCREEN TELEPHONES THOUGH THE NEW PARTNERSHIP HAS NO CONTROL OVER THE RETAIL PRICES OF ITS SERVICES MONTHLY FEES AREN'T EXPECTED TO EXCEED 10 SAID J RANDALL PEYSER PRESIDENT OF INTERACTIVE TRANSACTION PARTNERS US CONSUMERS HAVE BEEN SLOW TO EMBRACE THE NOTION OF HOME BANKING BUT JUPITER COMMUNICATIONS CO A MARKET RESEARCH FIRM IN NEW YORK ESTIMATES 178 MILLION HOMES WILL HAVE SCREENBASED PHONES BY 1998 GENE DEROSE JUPITER VICE PRESIDENT ESTIMATES THAT TODAY THERE ARE FEWER THAN 50000 SPECIALIZED PHONEANDSCREEN UNITS IN USE IN THE COUNTRY 9311170164 931117 INTERNATIONAL AIRBUS WINS JET ORDER FROM CHINESE CONCERN PARIS AIRBUS INDUSTRIE SAID IT WON AN ORDER FOR SIX JETLINERS VALUED AT A TOTAL OF 700 MILLION FROM THE CHINA AVIATION SUPPLIES CORP THE ORDER FOR THE EUROPEAN CONSORTIUM'S TOPOFTHELINE A340 GIVES AIRBUS A BOOST IN THE FASTGROWING CHINA MARKET WHERE US COMPANIES SO FAR HAVE TAKEN A SIGNIFICANT LEAD THE ORDER ALSO ENDS A PERIOD OF RELATIVE DROUGHT FOR AIRBUS WHOSE MEMBERS HAVE BEEN MAKING HUGE CUTS IN THEIR WORK FORCES AIRBUS'S MEMBERS ARE BRITISH AEROSPACE PLC DAIMLERBENZ AG'S DEUTSCHE AEROSPACE AIRBUS UNIT AEROSPATIALE SA OF FRANCE AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN THE CHINESE DEAL BRINGS THE NUMBER OF FIRM ORDERS FOR AIRBUS'S A330/A340 PROGRAM TO 345 AIRCRAFT FOR 34 CUSTOMERS 9311170163 931117 TECHNOLOGY TAKEUCHI ABRUPTLY RESIGNS AS PRESIDENT OF APPLE COMPUTER'S JAPAN SUBSIDIARY BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO CHANGE IN THE EXECUTIVE SUITES OF APPLE COMPUTER INC EXTENDED TO THE COMPANY'S MOST SUCCESSFUL FOREIGN SUBSIDIARY WITH THE ABRUPT RESIGNATION OF THE COMPANY'S JAPAN UNIT PRESIDENT IN A SURPRISE ANNOUNCEMENT SHIGECHIKA TAKEUCHI QUIT AS BOTH PRESIDENT OF APPLE JAPAN AND AS A VICE PRESIDENT OF THE PARENT COMPANY MR TAKEUCHI WILL REMAIN AS AN ADVISER TO THE APPLE VICE PRESIDENT IN CHARGE OF THE PACIFIC REGION APPLE GAVE FEW REASONS FOR MR TAKEUCHI'S DEPARTURE A COMPANY SPOKESMAN SAID THAT MR TAKEUCHI INDEPENDENTLY DECIDED TO RESIGN CITING THE STRESS OF RUNNING THE SUBSIDIARY HE SAID FIVE YEARS AT APPLE WAS LIKE 15 YEARS ANYWHERE ELSE THE SPOKESMAN SAID THE COMPANY ALSO SAID MR TAKEUCHI DECIDED TO LEAVE BECAUSE HE HAD NEARLY ACHIEVED HIS GOAL OF ANNUAL SALES IN JAPAN OF 1 BILLION AND WAS THEREFORE READY TO TURN TO NEW CHALLENGES APPLE SAID MR TAKEUCHI PLANS TO EXPLORE NEW BUSINESS OPPORTUNITIES IN THE JAPANESE MARKET DESPITE THOSE EXPLANATIONS MANY OBSERVERS BOTH IN AND OUTSIDE THE COMPANY SAID MR TAKEUCHI'S DEPARTURE MIGHT BE TIED TO THE RECENT EXIT OF FORMER APPLE CHAIRMAN AND CHIEF EXECUTIVE JOHN SCULLEY MR SCULLEY WHO STEPPED DOWN AS CHIEF EXECUTIVE IN JUNE LEFT THE COMPANY IN OCTOBER A LOT OF THINGS THE COMPANY STOOD FOR UNDER SCULLEY ARE NOW OPEN TO CHANGE SAID ONE APPLE EXECUTIVE MR TAKEUCHI WAS UNAVAILABLE FOR COMMENT DURING HIS FOUR YEARS AT THE HELM MR TAKEUCHI OVERSAW APPLE JAPAN'S RISE FROM A VIRTUAL NONENTITY IN THE JAPANESE PERSONALCOMPUTER MARKET TO WHAT DATAQUEST INC ESTIMATES IS THE COUNTRY'S THIRDLARGEST PC MAKER WITH A MARKET SHARE OF 83 SALES OF THE JAPAN UNIT GREW 43 IN THE YEAR ENDED SEPT 30 FROM THE YEARAGO PERIOD TO 95 BILLION YEN 8908 MILLION NOW JAPAN IS APPLE'S LARGEST MARKET OUTSIDE THE US AND ONE THAT ACCOUNTS FOR 37 OF APPLE'S OVERALL SALES DURING THE SEARCH FOR A NEW JAPANUNIT PRESIDENT JOHN FLOISAND A VICE PRESIDENT IN CHARGE OF THE PACIFIC REGION WILL OVERSEE APPLE JAPAN'S OPERATIONS FROM APPLE HEADQUARTERS IN CUPERTINO CALIF 9311170161 931117 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WASHINGTON ISN'T MUCH NOTED THESE DAYS FOR PROFILES IN COURAGE BUT THE DEBATE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT HAS PRODUCED A FEW HERE'S ONE REP NITA LOWEY IS A LITTLEKNOWN DEMOCRATIC CONGRESSWOMAN FROM THE NEW YORK CITY AREA SHE'S IN HER THIRD TERM AND SEEMS A RUNOFTHEMILL LIBERAL DEMOCRAT SHE USUALLY WINS A 100 RATING FROM THE LABOR MOVEMENT FOR VOTING IN FAVOR OF ITS AGENDA UNTIL LAST FRIDAY THAT IS THAT'S WHEN REP LOWEY ANNOUNCED THAT SHE WOULD BE VOTING FOR NAFTA IT WAS A LONELY DECISION SHE WAS THE ONLY DEMOCRAT IN HER THREESTATE AREA NEW YORK NEW JERSEY AND CONNECTICUT TO HAVE COME OUT FOR THE TRADE DEAL SHE KNOWS THAT THE LABOR LEADERS WHO EARNESTLY AND HEATEDLY URGED HER TO VOTE NO ON NAFTA WILL BE STEAMING AND THAT COULD COST PLENTY LAST ELECTION CYCLE REP LOWEY GOT 146750 OR 484 OF ALL HER POLITICAL ACTION COMMITTEE CONTRIBUTIONS FROM LABORRELATED PACS ACCORDING TO THE CENTER FOR RESPONSIVE POLITICS THAT FLOW COULD SLOW OR EVEN DRY UP NOW MEANWHILE THERE'S NO INDICATION THAT REP LOWEY GOT ANY GOODIES FROM THE PRONAFTA FORCES WHITE HOUSE OFFICIALS SAY SHE HAD A TALK WITH PRESIDENT CLINTON BUT DIDN'T ASK FOR ANY PORK IN RETURN FOR A YES VOTE WHAT SHE ASKED FOR THE WHITE HOUSE SAYS WAS MORE INFORMATION ABOUT NAFTA'S DETAILS REP LOWEY HERSELF SAYS HER DECISIONMAKING STANDARDS WERE SIMPLE NO DEALS NO DAMS NO BRIDGES SO WHY IS SHE DOING THIS CERTAINLY IT ISN'T BECAUSE NAFTA IS WINNING POPULARITY CONTESTS LIKE MANY LAWMAKERS REP LOWEY REPRESENTS SOME WHO LIKE NAFTA AND SOME WHO REALLY DISLIKE IT HER DISTRICT IS A PATCHWORK THAT RUNS THROUGH THE WESTCHESTER BRONX AND QUEENS COUNTIES OUTSIDE MANHATTAN THE UPPERCRUST NEIGHBORHOODS OF WESTCHESTER COUNTY ARE HOME TO SUBURBAN PROFESSIONAL COMMUTERS AND CORPORATE EXECUTIVES WHO PRESUMABLY LIKE NAFTA THE WORKINGCLASS NEIGHBORHOODS OF BRONX AND QUEENS ARE HOME TO THE KINDS OF UNION WORKERS FUMING ABOUT NAFTA AS IN MOST PLACES THE NAFTA HATERS HAVE BEEN MORE VOCAL HOW OFTEN DID REP LOWEY HEAR FROM NAFTA OPPONENTS EVERY FIVE MINUTES SHE SAYS THESE ARE PEOPLE I HAVE WORKED WITH IF YOU LOOK AT MY RECORD IT'S AS A FIGHTER FOR THE WORKING PEOPLE THEY ALL CAME IN AND SAW ME THEY WERE VERY PERSUASIVE BUT IN A CAPITAL AWASH WITH CYNICISM AND DEALMAKING SHE SEEMS TO BE AN EXAMPLE OF SOMEBODY WHO ACTUALLY STRAINED TO DO THE RIGHT THING RATHER THAN RUN WITH THE PACK IN A NUTSHELL REP LOWEY MADE A HARDHEADED DECISION THAT THE LEGITIMATE FEARS BORN OF RECENT ECONOMIC PAINS ARE OVERPOWERED BY THE EVIDENCE THAT NAFTA WOULD BE GOOD FOR HER REGION'S HIGHTECH AND SERVICE INDUSTRIES IN THE FUTURE THE JOBS THAT WERE FLEEING WERE GOING ANYWAY SHE SAYS INDEED REP LOWEY NOTES NEW YORK CITY ALONE HAS LOST 600000 MANUFACTURING JOBS IN THE PAST 35 YEARS AND NEW YORK STATE HAS LOST A THIRD OF ITS MANUFACTURING BASE IN THE PAST 20 YEARS HAVING NAFTA GO DOWN WAS NOT GOING TO BRING BACK THOSE JOBS SHE ARGUES INSTEAD SHE SAYS STRENGTHENING THE WHOLE REGION WAS THE KEY I BECAME CONVINCED THAT IF NAFTA WENT DOWN OUR EXPORTS WOULD GO DOWN OUR JOBS WOULD GO DOWN AND SHE WAS UNCONVINCED BY ARGUMENTS THAT NAFTA SHOULD BE STOPPED BECAUSE OF MEXICO'S SHODDY LABOR PRACTICES THOSE ARGUMENTS REALLY DIDN'T MAKE SENSE TO ME BECAUSE I REALIZED THAT BY SHINING A SPOTLIGHT ON MEXICO YOU'D HAVE A BETTER CHANCE OF RAISING WAGES OF IMPROVING LIVING STANDARDS BUT REP LOWEY'S STORY ISN'T IMPORTANT SO MUCH BECAUSE OF THE SUBSTANTIVE ARGUMENTS ON NAFTA ON THOSE REASONABLE PEOPLE CAN AND WILL CONTINUE TO DISAGREE THE IMPORTANT THING IS THAT SHE HAS SHOWN THAT IT'S STILL POSSIBLE IN THIS ERA OF ELECTRONIC TOWN HALLS MASS TELEPHONE CAMPAIGNS AND INSTANT POLLS FOR A POLITICIAN TO DECIDE WHAT TO DO BY SOME MEANS OTHER THAN STICKING A FINGER IN THE WIND FOR SOME REASON WOMEN MEMBERS OF THE HOUSE OF REPRESENTATIVES SHOW THE GREATEST WILLINGNESS TO TAKE THESE KINDS OF RISKY STANDS REP LOWEY ALSO POSES A TEST WILL THOSE IN THE BUSINESS COMMUNITY AND THE POLITICAL LEADERSHIP WHO ARE PRONAFTA STAND UP LATER TO HELP THOSE LIKE REP LOWEY WHO TAKE THE HARD ROAD THIS WEEK OR WILL SHE ENDURE ONLY PUNISHMENT FROM THE OTHER SIDE REFRESHINGLY REP LOWEY SEEMS NOT TO WORRY TOO MUCH ABOUT THAT I AM A MOTHER I'VE RAISED KIDS I'M ACTIVE IN THE COMMUNITY SHE SAYS I CAME HERE TO TRY TO DO THE RIGHT THING 9311170160 931117 WHO'S NEWS PENNSYLVANIA ENTERPRISES INC PENNSYLVANIA ENTERPRISES INC WILKESBARRE PA KENNETH M POLLOCK 36 YEARS OLD WAS ELECTED A DIRECTOR OF THIS NATURALGAS SERVICE PROVIDER FILLING A VACANCY ON THE EIGHTMEMBER BOARD MR POLLOCK IS AFFILIATED WITH FAMILYOWNED BUSINESSES IN NORTHEASTERN PENNSYLVANIA 9311170159 931117 INVACARE CORP COMPLAINT ELYRIA OHIO INVACARE CORP SAID IT HAS FILED A COMPLAINT ALLEGING THAT CLOSELY HELD JAY MEDICAL LTD'S JAY CARE BACK WHEELCHAIRSEAT PRODUCT INFRINGES ON AN INVACARE PATENT JAY MEDICAL BASED IN BOULDER COLO COULDN'T BE REACHED FOR COMMENT INVACARE'S AMENDED COMPLAINT FILED OCT 29 IN US DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO ASKS THE COURT TO ENJOIN SALE OF THE PRODUCT IN A PREVIOUS COMPLAINT FILED IN NOVEMBER 1991 INVACARE ASKED THE COURT TO DECLARE INVALID CERTAIN JAY MEDICAL PATENTS FOR FLUIDFILLED SEATBACK CUSHIONS 9311170158 931117 ORCHARD SUPPLY ACQUISITION SAN JOSE CALIF ORCHARD SUPPLY HARDWARE STORES CORP SAID THAT IT COMPLETED THE ACQUISITION OF SIX STORES FORMERLY OWNED BY BUILDERS EMPORIUM AND THAT IT EXPECTS TO ACQUIRE THREE MORE STORES WITHIN 60 DAYS TERMS WEREN'T DISCLOSED ORCHARD SUPPLY SAID THE NINE STORES ALL OF WHICH ARE IN CALIFORNIA WOULD BE REOPENED BY MIDSPRING 1994 THE COMPANY ALSO SAID IT PLANS TO OPEN FIVE OR SIX ADDITIONAL STORES NEXT YEAR 9311170157 931117 WHO'S NEWS OIS OPTICAL IMAGING SYSTEMS INC OIS OPTICAL IMAGING SYSTEMS INC TROY MICH RALPH J GERSON 43 YEARS OLD WAS NAMED CHAIRMAN OF THIS DEVELOPER OF ELECTRONIC LIQUIDCRYSTAL DISPLAY SCREENS MR GERSON IS EXECUTIVE VICE PRESIDENT AND DIRECTOR OF GUARDIAN INDUSTRIES CORP A NORTHVILLE MICHBASED CLOSELY HELD FIRM THAT CONTROLS A 45 STAKE IN OIS MR GERSON SUCCEEDS REX TAPP 43 WHO REMAINS WITH OIS AS PRESIDENT AND CHIEF EXECUTIVE OFFICER 9311170156 931117 WHO'S NEWS AMERICAN SAVINGS OF FLORIDA FSB AMERICAN SAVINGS OF FLORIDA FSB MIAMI ERWIN ALLEN 71 YEARS OLD T WAYNE DAVIS 47 AND BARBARA WHEATLEY GOTHARD 55 WERE ELECTED DIRECTORS OF THIS BANKING COMPANY EXPANDING THE BOARD TO EIGHT MEMBERS MR ALLEN IS A RETIRED CONSULTANT TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORP MR DAVIS IS A MIAMI ATTORNEY AND MRS GOTHARD IS PRESIDENT OF A PUBLIC RELATIONS CONSULTING FIRM IN MIAMI 9311170154 931117 NEW JERSEY REGULATORS CONSIDER LEGALIZATION OF SPORTS GAMBLING TRENTON THE STATE'S CASINO INDUSTRY IS ROLLING THE DICE AGAIN IN HOPES OF WINNING LEGALIZED SPORTS GAMBLING AFTER EXHAUSTING LEGISLATIVE AVENUES THE INDUSTRY HAS GOTTEN THE NEW JERSEY CASINO CONTROL COMMISSION TO CONSIDER TODAY A PROPOSAL THAT WOULD PERMIT BETTING ON PROFESSIONAL AND COLLEGIATE SPORTS EXCEPT FOR NEW JERSEY COLLEGIATE EVENTS ON A SIXMONTH TRIAL STATE GAMING INTERESTS SAY THE INDUSTRY FACING INCREASED COMPETITION FROM NEARBY STATES THAT RECENTLY LEGALIZED GAMBLING ON INDIAN RESERVATIONS NEEDS SPORTS BETTING TO REMAIN COMPETITIVE FEDERAL LEGISLATION LAST YEAR BANNED SPORTS GAMBLING IN MOST STATES BUT NEW JERSEY WHICH HAS A STATE LOTTERY AND LEGALIZED GAMBLING IN ATANTIC CITY WAS GIVEN UNTIL JANUARY 1994 TO APPROVE IT IT'S NOT CLEAR WHETHER THE CASINO REGULATORS HAVE THE AUTHORITY TO SUPERSEDE THE LEGISLATURE WHEN STATE VOTERS APPROVED GAMBLING IN 1976 A LEGISLATIVE RESOLUTION MADE CLEAR THAT SPORTS BETTING WOULD NOT BE AUTHORIZED A COMMISSION SPOKESWOMAN DECLINED TO COMMENT AMID INTENSE OPPOSITION LED BY US SEN BILL BRADLEY D NJ A FORMER NEW YORK KNICKS PLAYER AN INDUSTRYLED MOVE FAILED THIS YEAR TO MUSTER ENOUGH VOTES IN THE ASSEMBLY TO AUTHORIZE A NOVEMBER REFERENDUM ON SPORTS BETTING A PREVIOUS EFFORT ALSO FAILED A SPOKESMAN FOR MR BRADLEY SAID HE REMAINS OPPOSED TO SPORTS BETTING 9311170153 931117 FINANCING BUSINESS JC PENNEY INC JC PENNEY INC PLANO TEXAS ANNOUNCED A 1 BILLION PUBLIC OFFERING OF DEBT AS PART OF A YEARLONG EFFORT BY THE RETAILER TO REDUCE ITS INTEREST COSTS THE THREEPART OFFERING INCLUDES 400 MILLION OF FIVEYEAR NOTES PRICED TO YIELD 544 325 MILLION OF 10YEAR NOTES TO YIELD 622 AND 275 MILLION OF 30YEAR DEBENTURES TO YIELD 714 THE COMPANY SAID PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES 9311170152 931117 WHO'S NEWS EXXON CORP EXXON CORP IRVING TEXAS DANIEL S SANDERS PRESIDENT OF THE BASIC CHEMICALS GROUP OF THIS OIL COMPANY'S EXXON CHEMICALS DIVISION WILL BE NAMED VICE PRESIDENT HUMAN RESOURCES OF THE PARENT EFFECTIVE JAN 1 1994 MR SANDERS 54 YEARS OLD WILL SUCCEED MANLY E GILLIS 63 WHO WILL RETIRE 9311170151 931117 AT THIS TIME EACH YEAR THE LADY GIVES MORE THAN SIMPLY THANKS BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL UNIONTOWN PA ALL YOU CYNICS WHO DON'T BELIEVE IN SOMETHING FOR NOTHING TAKE A LOOK AT RUTH WILLIAMS WALKER YESTERDAY MRS WALKER GAVE AWAY 800 TURKEYS 800 DOZEN EGGS AND 800 LOAVES OF BREAD NO QUESTIONS ASKED TO THE FOLKS WHO BEGAN LINING UP OUTSIDE HER DOOR AT 530 AM IN THIS DEPRESSED FORMER COALMINING TOWN IN SOUTHWEST PENNSYLVANIA SHE DOESN'T INQUIRE ABOUT INCOME OR NEED IN FACT SOME LOCALS SUGGEST SHE'S BEING TAKEN ADVANTAGE OF BY PEOPLE WHO PLANT SEVERAL FAMILY MEMBERS IN LINE IT WAS RUMORED LAST YEAR FOR INSTANCE THAT A WOMAN BRAGGED SHE HAD GOTTEN TWO TURKEYS ONE FOR A SICK FRIEND BUT MRS WALKER FIGURES THAT IF SOMEONE STANDS IN LINE ALL MORNING FOR THE NOON GIVEAWAY THEY MUST BE NEEDY SOMETIMES YOU LET PEOPLE KEEP THEIR PRIDE SAYS MRS WALKER WHO PROMOTED THE TURKEY GIVEAWAY BY HANGING FLIERS IN CHURCHES AND STORES A PERSON'S CONSCIENCE HAS GOT TO BE THEIR GUIDE SHE DOESN'T ACCEPT DONATIONS FOR THE ANNUAL TRADITION SHE BEGAN ABOUT A DECADE AGO FINANCING THE ESTIMATED 10000 COST SHE WON'T DISCLOSE THE AMOUNT OUT OF HER OWN POCKET WHICH ISN'T VERY DEEP YEARS AGO SHE WAS ON PUBLIC ASSISTANCE NOW SHE RUNS A PERSONALCARE CENTER FOR 16 RESIDENTS AT HER MODEST HOME THE GOVERNMENT PAYS HER 700 A MONTH FOR EACH PERSON'S ROOM AND BOARD 60 OF WHICH GOES TO THE INDIVIDUAL FOR PERSONAL EXPENSES I WANT TO SACRIFICE SHE SAYS IT'S A WAY SHE SAYS OF GIVING BACK SOMETHING YEARS AGO A CAFETERIA SUPERVISOR HELPED HER GET OFF PUBLIC ASSISTANCE BY ALLOWING MRS WALKER WHO COULDN'T AFFORD A BABY SITTER TO BRING HER THREE CHILDREN TO WORK WITH HER BESIDES THE GIVEAWAY GIVES HER A WARM FEELING SOMETIMES IT JUST MAKES YOU SAY I'M TRULY BLESSED' AFTER YOU SEE OTHER PEOPLE'S PROBLEMS IT MAKES YOU QUIT FEELING SORRY FOR YOURSELF SAYS MRS WILLIAMS WHOSE SECOND HUSBAND DIED TWO MONTHS AGO YESTERDAY SHE CHEERILY GREETED EACH OF THE PEOPLE WHO WERE GUIDED TO HER FRONT DOOR BY VOLUNTEER TRAFFIC DIRECTORS HI LOVIE HOW ARE YOU DOING SHE ASKED EUGENE ANDERSON THE UNEMPLOYED FATHER OF TWO SAID HE WAS MOST APPRECIATIVE OF WHATEVER THEY CAN GIVE US ANOTHER LINE WILL BE FORMING OUTSIDE MRS WALKER'S HOUSE ON THANKSGIVING DAY LAST YEAR MRS WALKER SERVED ABOUT 125 SITDOWN OR TAKEOUT DINNERS TO ANYONE WHO SHOWED UP ON HER DOORSTEP 9311170150 931117 CORRECTION A NOV 12 EDITORIAL PAGE ARTICLE BY S ROBERT LICHTER INCOMPLETELY DESCRIBED THE SPONSORSHIP OF THE STUDY MENTIONED IT WAS COSPONSORED BY THE CENTER FOR SCIENCE TECHNOLOGY & MEDIA IN ADDITION THE ARTICLE INCORRECTLY IDENTIFIED THE AFFILIATION OF DR SIDNEY WOLFE HE IS DIRECTOR OF THE PUBLIC CITIZEN HEALTH RESEARCH GROUP 9311170147 931117 PEPPERAND SALT BUT BY THE SAME TOKEN I'M PROMPTED TO STRESS JUST IMAGINE THE DELUGE OF INTEREST GROUPS OF THESE FIVE WORDS HOW OFTEN DO YOU FLOSS 9311170146 931117 WHO'S NEWS EDO NAMES ALBERT CHAIRMAN ESTABLISHES AGE LIMIT FOR OFFICERS COLLEGE POINT NY EDO CORP AN ELECTRONIC AND SPECIALIZED EQUIPMENT MANUFACTURER NAMED GERALD ALBERT 68 YEARS OLD CHAIRMAN AND FRANK A FARIELLO 59 PRESIDENT MR ALBERT WHO CONTINUES AS CHIEF EXECUTIVE SUCCEEDS WILLIAM R RYAN 82 THE COMPANY'S CHAIRMAN FOR 21 YEARS WHO REMAINS A DIRECTOR MR FARIELLO WHO HAD BEEN EXECUTIVE VICE PRESIDENT WAS ALSO NAMED CHIEF OPERATING OFFICER A POSITION THAT HAS BEEN VACANT FOR SOME TIME EDO ALSO ANNOUNCED CORPORATE BYLAW CHANGES SETTING AN AGE LIMIT OF 70 FOR OFFICERS AND 73 FOR DIRECTORS WHEN THEIR TERMS EXPIRE THE COMPANY SAID IT WILL LIMIT THE NUMBER OF CURRENT OR PAST EMPLOYEES ON THE BOARD TO ONETHIRD OF ITS MEMBERS AS A RESULT OF THE NEW POLICY THE COMPANY SAID SEVEN OF THE CURRENT 12 BOARD MEMBERS WILL LEAVE THE BOARD WITHIN THE NEXT THREE YEARS 9311170143 931117 INTERNATIONAL NAPLES FEELS ITALY'S POLITICAL TREMORS OFFICIALS AIM TO END CORRUPTION BUT IT WON'T BE EASY BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL NAPLES ITALY THE TRAFFIC LIGHTS HERE WERE ALL SWITCHED OFF FOR EIGHT MONTHS THIS YEAR ALMOST ANYWHERE ELSE THERE WOULD HAVE BEEN CALAMITY IN NAPLES THERE WAS JUST CHAOS AS USUAL NOTHING HAPPENED BECAUSE NOBODY RESPECTS RED LIGHTS EVEN WHEN THEY DO WORK SAYS ALFREDO CAPASSO A LOCAL TRANSPORTATION WORKER THIS IS A CITY THAT PLAYS BY ITS OWN RULES AND MANY LOCALS SAY THAT'S PART OF ITS CHARM YET NAPLES THE HOMETOWN OF PIZZA HAS BECOME SYNONYMOUS IN ITALY WITH AN ANARCHIC WAY OF LIFE THAT AT ITS WORST HAS ALSO SPAWNED RAMPANT CORRUPTION AND BUREAUCRATIC INEFFICIENCY BUT THESE DAYS EVEN NAPLES IS FEELING THE TREMORS OF THE POLITICAL EARTHQUAKE SHAKING ITALY A MOVE IS ON SPEARHEADED BY LOCAL MAGISTRATES TO CLEAN UP THE CITY THE AIM TO USHER IN A NEW AGE IN WHICH POLITICIANS DON'T BUY VOTES JUDGES AREN'T ON THE MAFIA'S PAYROLL AND BUSINESS DOESN'T NEED TO PAY KICKBACKS TO WIN CONTRACTS NOBODY SAID IT WAS GOING TO BE EASY AND IF ANYTHING THE REGULAR CHAOS HAS BECOME MORE CHAOTIC LATELY UNEMPLOYMENT HERE IS OFFICIALLY 27 ALTHOUGH ALL NEAPOLITAN STATISTICS NEED TO BE TAKEN WITH A PINCH OF SALT MANY RESIDENTS LIVE IN DILAPIDATED HOUSES THAT SOMETIMES COLLAPSE DRUGS AND STREET CRIME ARE ON THE RISE THE TRAFFIC LIGHTS WERE SWITCHED OFF A YEAR AGO BECAUSE THE CITY COUNCIL RAN OUT OF MONEY TO SERVICE THEM THE MAYOR WAS ARRESTED FOR CORRUPTION SOON THEREAFTER AND HIS SUCCESSOR PROMPTLY DECLARED THE CITY OFFICIALLY BANKRUPT IN AUGUST AFTER MORE THAN 200 SCHOOLS HAD CLOSED BECAUSE OF A LACK OF REPAIRS AND A REDDISHBROWN SUBSTANCE STARTED OOZING OUT OF THE WATER FAUCETS ROME FINALLY STEPPED IN IT TOOK OVER CONTROL OF THE CITY'S AFFAIRS CALLED ELECTIONS FOR NOV 21 AND SWITCHED BACK ON ABOUT 20 OF THE TRAFFIC LIGHTS FEW NEAPOLITANS ARE SHEDDING TEARS FOR THEIR DISGRACED LEADERS BUT FEW SEEM TO BELIEVE NAPLES WILL CHANGE MUCH IF AT ALL ELECTIONS OR NO YOU CAN REPLACE THE MAESTRO BUT THE MUSIC ALWAYS STAYS THE SAME SHRUGS EMMA PISANI A 70YEAROLD RETIRED SEAMSTRESS IT'S A BIT UTOPIAN TO THINK NAPLES COULD LIVE WITHOUT CORRUPTION SAYS ANNA STANCO A MIDDLEAGED WOMAN WHO RUNS A CHARITY THAT TRIES TO HELP CHILDREN IN THE DISTRICT EVEN SOME MAGISTRATES AGREE EVERYTHING WAS CORRUPT AND IT'S HARD TO KNOW IF IT CAN BE CHANGED SAYS ROSARIO CANTELMO WHO IS INVESTIGATING GRAFT IN THE CITY ADMINISTRATION THE OLD SYSTEM DOESN'T YIELD EASILY STILL THE MAGISTRATES HAVE MADE INROADS ARRESTING OR INDICTING MUCH OF THE CITY'S POLITICAL AND BUSINESS ESTABLISHMENT IN THE PAST MONTHS ON CHARGES RANGING FROM ELECTORAL FRAUD TO CORRUPTION TO TIES WITH THE CAMORRA THE LOCAL MAFIA THE MAGISTRATES SUSPECT THEIR WORKING CONDITIONS HAVE BEEN KEPT DELIBERATELY POOR IN AN ATTEMPT TO SLOW THE CORRUPTION PROBES IN THEIR CRAMPED AND ILLEQUIPPED OFFICE AT THE CRUMBLING MEDIEVAL PALACE OF JUSTICE THE MAGISTRATES' FILES ARE KEPT IN FLIMSY CABINETS THAT LINE THE CORRIDORS BECAUSE THERE'S NO ROOM ELSEWHERE THE ONLY SECURITY AGAINST POTENTIAL MAFIASTYLE REVENGE IS A METAL DETECTOR AT THE ENTRANCE TO THE PALACE BUT IT DOESN'T WORK THE MAGISTRATES RECENTLY SENT AN OFFICIAL PLEA TO ROME ASKING FOR HELP BUT SO FAR NONE HAS BEEN FORTHCOMING THEIR PROTEST HASN'T BEEN COMPLETELY FRUITLESS HOWEVER A LOCAL NEWSPAPER HAS STARTED A COLLECTION TO BUY THE JUDGES COMPUTERS THAT WORK AND ONE PENSIONER EVEN WROTE IN OFFERING TO LEND HIS TYPEWRITER AND LIKE MANY ACTIVISTS HERE THE MAGISTRATES ARE HOPING THIS SUNDAY'S CITY COUNCIL ELECTIONS WILL GIVE THEM A BOOST THEY MAY BE A LAST CHANCE TO CHANGE SOMETHING MR CANTELMO SAYS THE TWO FRONTRUNNERS ARE A FORMER HARDLINE COMMUNIST NAMED ANTONIO BASSOLINO AND ALESSANDRA MUSSOLINI GRANDDAUGHTER OF THE LATE FASCIST DICTATOR BENITO NOT MUCH OF A CHOICE SOME COMPLAIN BUT AT LEAST MOST OF THE DISCREDITED NAMES OF THE PAST WON'T BE TAKING PART PEOPLE ARE WATCHING FOR SIGNS OF ILLEGAL VOTEBUYING A STAPLE OF NEAPOLITAN POLITICS ONE OF THE MOST PROMINENT TARGETS OF THE MAGISTRATES TODAY IS A NAPLES POLITICIAN AND FORMER HEALTH MINISTER FRANCESCO DE LORENZO WHO HAS BEEN ACCUSED OF THE HIGHTECH EQUIVALENT OF VOTE BUYING IN A RECENT RAID ON MR DE LORENZO'S HOUSE MAGISTRATES SAY THEY FOUND A COMPUTER DISK WITH LISTS OF PEOPLE WHO PROMISED VOTES IN EXCHANGE FOR CITY JOBS MR DE LORENZO CAN'T BE CHARGED WITH ANY OFFENSE BECAUSE THE NATIONAL PARLIAMENT HASN'T LIFTED HIS IMMUNITY WHEN MAGISTRATES RECENTLY RAIDED THE HOME OF A PHARMACEUTICAL INDUSTRY OFFICIAL THEY FOUND A TREASURE TROVE OF ALLEGED KICKBACKS GOLD AND SILVER BARS DIAMONDS WORKS OF ART AND DETAILS OF FIVE SWISS BANK ACCOUNTS THE EXECUTIVE DIULIO POGGIOLINI IS IN A NAPLES JAIL AWAITING TRIAL AMID SUCH ENTRENCHED CORRUPTION THE ADMINISTRATION OF SOCIAL SERVICES IS EVEN WORSE THAN IT MIGHT NORMALLY BE GIOVANNA AMIRANTE RUNS A CITY SOCIAL WELFARE OFFICE ORGANIZING DAILY VISITS TO SHUTIN PENSIONERS AND DEALING WITH A HOST OF EVERYDAY PROBLEMS FOR THE POOR MONEY WAS ALWAYS TIGHT BUT SINCE NAPLES WAS PUT INTO OFFICIAL BANKRUPTCY SHE SAYS EVERYTHING HAS STOPPED WAITING TO SEE WHAT WILL HAPPEN IN HER CAVERNOUS OFFICE 15 SOCIAL WORKERS SHARE NINE DESKS AND JUST ONE PHONE CRUDE PAPER FILES ARE KEPT IN OLD WARDROBES AND ALL CORRESPONDENCE IS WRITTEN BY HAND BECAUSE THERE'S NO MONEY TO FIX THE THREE BROKEN TYPEWRITERS WE'RE STILL WORKING IN THE 19TH CENTURY MRS AMIRANTE SAYS BLAMING THE LACK OF AMENITIES ON THE CITY'S FORMER POLITICAL BOSSES FOR YEARS THE LOGIC WAS NOT TO RENDER A SERVICE BUT TO GET POWER SHE SAYS I'VE HAD TO FIGHT TWO BATTLES AGAINST POVERTY AND AGAINST OUR OWN ADMINISTRATION FIGHTING BATTLES IN FACT IS THE LOCAL SPORT ALMOST EVERY DAY FOR THE PAST FEW MONTHS THE CITY'S NARROW STREETS HAVE BEEN CLOGGED BY STRIKES AND PROTESTS AGAINST DECLINING SOCIAL SERVICES WATER SHORTAGES HIGHER TAXES AND MANY OTHER GRIEVANCES MR CAPASSO THE TRANSPORT WORKER HAS DONE HIS BIT TO ORGANIZE THEM HE WORKS AT THE CITY'S MAIN MUNICIPAL TRANSIT COMPANY ATAN AND RUNS A CONSUMER ACTIVIST GROUP IN HIS SPARE TIME THAT LOBBIES FOR BETTER TRANSPORTATION SERVICES THAT'S A TALL ORDER DESPITE HANDOUTS FROM ROME ATAN HAS DEBTS OF MORE THAN 1 BILLION ITS PRESIDENT IS UNDER HOUSE ARREST AFTER ADMITTING HE RECEIVED KICKBACKS FROM A COMPANY THAT IS RENOVATING THE CITY'S FUNICULAR RAILWAY WORK ON THE FUNICULAR HAS STOPPED TOO AND ATAN'S PHONE LINES WERE CUT THIS SUMMER BECAUSE IT HADN'T PAID THE BILLS FOR YEARS THAT'S A HABIT THAT IS CONTAGIOUS MOST NEAPOLITANS TRAVEL ON THE CITY'S TRANSIT SYSTEM WITHOUT PAYING PUBLIC PROTEST IS IMPORTANT MR CAPASSO SAYS IF I WANT TO PREPARE A BETTER FUTURE FOR MY CHILDREN I CAN'T JUST SIT ON MY HANDS LOOK WHAT SILENCE HAS BROUGHT US STILL HE ADDS I DON'T THINK WE ARE AT THE POINT YET TO REALLY CHANGE THINGS IN NAPLES 9311170142 931117 MORGAN STANLEY TO BUY RED ROOF INNS A SIGN VULTURE FUNDS' SEEK SURVIVORS BY MITCHELL PACELLE AND PAULINE YOSHIHASHI STAFF REPORTERS OF THE WALL STREET JOURNAL A MORGAN STANLEY & CO FUND HAS AGREED TO BUY RED ROOF INNS INC HOTEL CHAIN A SIGN THAT REALESTATE VULTURE FUNDS ARE LOOKING BEYOND DISTRESSED PROPERTIES IN THEIR SEARCH FOR INVESTMENT OPPORTUNITIES THE MORGAN STANLEY GROUP INC UNIT WILL PAY AN UNDISCLOSED AMOUNT OF CASH TO THE PRIVATE OWNERS OF THE HILLIARD OHIO COMPANY PLUS ASSUME THE EXISTING MORTGAGE DEBT ON THE PROPERTIES THE CASH AND MORTGAGE DEBT WILL TOTAL ABOUT 620 MILLION THE DEAL WILL GIVE THE NEW YORK INVESTMENTBANKING FIRM A STAKE IN THE MODERATEPRICED HOTEL SECTOR WHICH SURVIVED THE INDUSTRY'S SEVERE RECESSION BETTER THAN OTHERS IN PART BECAUSE OF BUDGETCONSCIOUS BUSINESS TRAVELERS LIKE OTHER SOCALLED VULTURE FUNDS MORGAN'S REALESTATE FUND POOLS ITS OWN MONEY WITH THAT OF INSTITUTIONAL INVESTORS TO BUY TROUBLED PROPERTIES AND LOANS AT A DISCOUNT IN THE EXPECTATION OF SELLING THEM LATER AT A PROFIT UP UNTIL NOW HOWEVER THE MORGAN FUND HAS CONCENTRATED ON BUYING DISTRESSED REAL ESTATE FROM BANKS AND THE RESOLUTION TRUST CORP THE GOVERNMENT'S THRIFT BAILOUT AGENCY MORGAN DIDN'T DISCLOSE ITS LONGTERM OWNERSHIP STRATEGY FOR RED ROOF ALTHOUGH IT PLANS TO LET THE CURRENT MANAGEMENT CONTINUE TO OPERATE THE CHAIN LIMITED SERVICE CHAINS LIKE RED ROOF PROMUS COS'S HAMPTON INNS AND LA QUINTA MOTOR INNS HAVE KEPT THEIR RATES DOWN BY ELIMINATING COSTLY FACILITIES SUCH AS RESTAURANTS AND BANQUET HALLS ACCORDING TO ARTHUR ANDERSEN & CO THAT SECTOR HAS EXHIBITED THE STRONGEST ROOMRATE GROWTH OF ALL HOTEL SECTORS SINCE 1988 PAUL KAZILIONIS PRESIDENT OF THE MORGAN STANLEY REALESTATE FUND SAID THE DEAL WAS VALUED AT ABOUT 26000 A ROOM WELL BELOW THE 35000 TO 40000 REPLACEMENT COST WITH AVERAGE RATES OF ABOUT 45 A NIGHT HE SAID THE CHAIN BOASTS A 78 OCCUPANCY RATE COMPARED WITH THE 65 AVERAGE FOR THE SECTOR RED ROOFS FOUNDED IN 1972 NEAR COLUMBUS OHIO BY JAMES TRUEMAN DOES NOT FRANCHISE ITS NAME TO OTHER OWNERS BUT OWNS ALL OF ITS PROPERTIES GIVING IT COMPLETE CONTROL OVER ITS OPERATIONS AND A CONSISTENCY THAT HAS PROVED APPEALING TO BUDGETCONSCIOUS CONSUMERS IT OWNS 210 HOTELS IN 30 STATES IN THE MIDWEST NORTHEAST SOUTH AND GULF COAST SEVERAL YEARS AFTER MR TRUEMAN'S DEATH IN 1986 GROWTH GROUND TO A HALT A BIT EARLIER THAN SOME COMPETITORS MORGAN STANLEY APPROACHED CHAIRWOMAN BARBARA TRUEMAN MR TRUEMAN'S WIDOW 18 MONTHS AGO AND PROPOSED INVESTING CAPITAL TO EXPAND THE COMPANY IN EXCHANGE FOR A MINORITY STAKE THOSE DISCUSSIONS LED TO ITS PURCHASE OF THE ENTIRE COMPANY THIS IS A COMPANY WITH A BRAND NAME THAT'S READILY EXPANDABLE THROUGHOUT THE UNITED STATES SAID MR KAZILIONIS CITING THE COMPANY'S COMPLETE ABSENCE FROM THE SOUTHWEST AND WEST THE PLAY WOULD BE TO ADD PROPERTIES TO RAISE BRAND AWARENESS SAID DONALD W WISE VICE PRESIDENT OF LODGING AND HOSPITALITY FOR CB COMMERCIAL REAL ESTATE GROUP INC OF LOS ANGELES WITH SOME CREATIVE FINANCING THIS COULD BE AN INTERESTING CASH COW THE MORGAN STANLEY FUND INVESTED IN TWO OTHER HOTELS EARLIER THIS YEAR LAST SUMMER IT PURCHASED THE CARMEL VALLEY RANCH A CALIFORNIA RESORT THAT COST ROUGHLY 45 MILLION TO BUILD AT A RESOLUTION TRUST CORP AUCTION FOR 183 MILLION IN A JOINTVENTURE WITH PHOENIXBASED WESTCOR PARTNERS IN AUGUST IT BOUGHT THE DORAL TELLURIDE A 100 MILLION COLORADO SKI RESORT HOTEL AND SPA FROM A PRIVATE DEVELOPER FOR ABOUT 30 MILLION ALSO IN PARTNERSHIP WITH WESTCOR 9311170141 931117 WHO'S NEWS PRICE WATERHOUSE PRICE WATERHOUSE NEW YORK SHAUN O'MALLEY 58 YEARS OLD CHAIRMAN AND SENIOR PARTNER OF PRICE WATERHOUSEUS WAS ELECTED WORLD CHAIRMAN OF THIS INTERNATIONAL ACCOUNTING AND CONSULTING FIRM HE PLANS TO RETIRE JUNE 30 1995 HE PREVIOUSLY SHARED THE POSITION WITH SIR JEFFERY BOWMAN 54 WHO RETIRED THIS YEAR ALSO JERMYN BROOKS CHAIRMAN OF PRICE WATERHOUSEEUROPE WAS NAMED DEPUTY WORLD CHAIRMAN SUCCEEDING SIR JEFFERY SEPARATELY HOWARD HUGHES 55 WAS REAPPOINTED WORLD MANAGING PARTNER 9311170140 931117 INDUSTRY FOCUS CARBON DIOXIDE SUPPLIERS ARE ACCUSED OF PRICE FIXING LAWSUITS ALLEGE FIRMS AGREED NOT TO COMPETE FOR EACH OTHER'S CUSTOMERS BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE US CARBON DIOXIDE INDUSTRY HAS QUIETLY GROWN INTO A 600 MILLIONAYEAR BUSINESS BY FINDING MYRIAD USES FOR THE GAS IT IS USED IN FIRE EXTINGUISHERS FOR QUICK FREEZING OF CAKES PIES AND MEATS TO CARBONATE BEVERAGES TO FORCE CRUDE OIL TO THE SURFACE IN DRILLING OPERATIONS AND TO PURIFY WATER AMONG OTHER THINGS BUT WHILE CO2 MAY BE A MUNDANE PRODUCT THE INDUSTRY'S MARKETING PRACTICES HAVE BEEN ANYTHING BUT COMMON COURT RECORDS SUGGEST MAJOR CO2 SUPPLIERS HAVE BEEN ACCUSED BY THE FLORIDA ATTORNEY GENERAL AND MAJOR SODA BOTTLERS AND FOOD COMPANIES OF FIXING PRICES ACROSS THE US BY AGREEING NOT TO COMPETE FOR COMPETITORS' ESTABLISHED CUSTOMERS EVIDENCE ACCUMULATED BY THE ATTORNEY GENERAL AND DESCRIBED IN COURT FILINGS SUPPORTS THESE CONTENTIONS THE RECORDS ARE FILED IN CONSOLIDATED ANTITRUST LAWSUITS IN FEDERAL DISTRICT COURT IN ORLANDO FLA THE LAWSUITS WERE BROUGHT BY THE ATTORNEY GENERAL'S ANTITRUST DIVISION AND THE FOOD AND BOTTLING COMPANIES MEANWHILE A FEDERAL GRAND JURY WORKING WITH THE US JUSTICE DEPARTMENT'S ANTITRUST DIVISION IS INVESTIGATING THE INDUSTRY AS WELL ACCORDING TO LAWENFORCEMENT OFFICIALS COMPANIES IDENTIFIED BY FLORIDA ANTITRUST REGULATORS IN COURT DOCUMENTS AS CENTRAL TO THE ALLEGED PRICEFIXING CONSPIRACY ARE THE INDUSTRY'S BIG FOUR BOC GROUP INC A UNIT OF BOC GROUP PLC OF BRITAIN LIQUID AIR CORP A UNIT OF FRANCE'S AIR LIQUIDE SA LIQUID CARBONIC A UNIT OF CBI INDUSTRIES INC OAK BROOK ILL AND ARCHERDANIELSMIDLAND CO DECATUR ILL ARCHERDANIELS THE GIANT GRAIN PROCESSOR MAKES THE GAS AT THREE PLANTS IN ILLINOIS AND IOWA AS A BYPRODUCT OF PROCESSING CORN INTO ETHANOL FUEL ALL FOUR COMPANIES DENIED THEY'VE FIXED PRICES BUT WOULDN'T COMMENT ON SPECIFIC ALLEGATIONS IN THE LITIGATION LIQUID AIR'S ATTORNEY WILLIAM SCHOPF OF CHICAGO SAID THERE IS NO EVIDENCE HERE OF CONSPIRACY HE ADDED UNLESS A COMPANY THINKS IT CAN TAKE AWAY A CUSTOMER IT DOESN'T GO AFTER THAT CUSTOMER IF ALL THAT WILL DO IS DROP THE PRICE THESE ARE UNILATERAL DECISIONS JEROME HOFFMAN CHIEF OF THE ANTITRUST DIVISION OF THE FLORIDA ATTORNEY GENERAL'S OFFICE SAID THE CARBON DIOXIDE COMPANIES HAVE ENTERED INTO ONE FORM OF ILLEGAL AGREEMENT OR ANOTHER FOR 50 YEARS THIS CASE FOCUSES ON THE MOST RECENT MANIFESTATION HE SAID THE ALLEGED PRICE FIXING CONTRIBUTES TO INCREASING THE COSTS OF PROCESSED FOODS AND BEVERAGES THAT AFFECT ALL CONSUMERS ONE SUPPLIER'S PRODUCT IS INDISTINGUISHABLE FROM ANOTHER'S SO PROFITSQUEEZING PRICE WARS MIGHT SEEM INEVITABLE PROFITS ARE CONSTRAINED TOO BY A NEED FOR BIG CAPITAL INVESTMENTS SUPPLIERS NEED LOTS OF TRUCK RIGS AND RAIL TANK CARS TO LUG COLD PRESSURIZED LIQUID CARBON DIOXIDE FLORIDA REGULATORS AND PLAINTIFFS SUCH AS SEVENUP BOTTLING CO CONSHOHOCKEN PA AND SARA LEE CORP CHICAGO CLAIM CO2 SUPPLIERS PROTECTED PROFITS THROUGH CUSTOMER ALLOCATION AND PRICE FIXING RICHARD BLUDORN A FORMER FLORIDA REGIONAL MANAGER FOR A COMPANY ACQUIRED BY LIQUID AIR TOLD LAWENFORCEMENT OFFICIALS THAT YOU DO NOT GO AFTER EXISTING CUSTOMERS OF YOUR COMPETITORS' BUSINESS ACCORDING TO DOCUMENTS FILED BY FLORIDA ANTITRUST OFFICIALS THE REGULATORS SAID HE AND OTHERS HAVE PROVIDED EVIDENCE EITHER INFORMALLY OR IN RESPONSE TO CIVIL INVESTIGATIVE DEMANDS MADE BY THE STATE JAMES R SABO A FORMER MIDWEST REGIONAL SALES MANAGER FOR LIQUID CARBONIC TOLD FLORIDA INVESTIGATORS THAT SALES MANAGERS WERE DISCOURAGED FROM TAKING COMPETITORS' BUSINESS REGARDLESS OF PRICE COURT FILINGS SHOW HE ALSO SAID THAT PRICE SCHEDULES WERE FREELY EXCHANGED AMONG CARBON DIOXIDE COMPETITORS ACCORDING TO COURT DOCUMENTS THE PRACTICES DESCRIBED IN THE COURT DOCUMENTS COMMENCED AS FAR BACK AS THE 1970S IN AN AFFIDAVIT SIGNED IN SEPTEMBER ROBERT O WIESEMANN SR A SALES MANAGER UNTIL 1975 AT LIQUID CARBONIC SAID ONE METHOD OF COLLUDING WITHOUT MAKING IT OBVIOUS WAS TO QUOTE ARTIFICIALLY HIGH PRICES FROM A FIXEDPRICE LIST IF A CUSTOMER OF ANOTHER SUPPLIER SOUGHT COMPETITIVE BIDS CITING SUCH HIGH PRICES SAID THE WIESEMANN AFFIDAVIT WOULD GIVE THE CUSTOMER THE IMPRESSION THAT A SUPPLIER WAS INTERESTED IN THE BUSINESS AND THAT THE CUSTOMER WAS PAYING A COMPETITIVELY DETERMINED PRICE THIS ENABLED SUPPLIERS TO CHARGE WHAT THEY WANTED HE SAID IN THE AFFIDAVIT OFFICIALS AT BOTTLING COMPANIES SAY THEY'VE BEEN UNABLE TO GET COMPETING BIDS IN RECENT YEARS AS A RESULT PURCHASERS CONTEND LIQUID CARBONIC AS RECENTLY AS 1991 WAS ABLE TO RAISE PRICES TWO OR THREE TIMES A YEAR AND FROM 1980 TO 1985 THE COMPANY NEARLY DOUBLED ITS PRICE TO THE CITY OF FT MYERS FLA TO A 137 A TON FROM 74 A TON ACCORDING TO ATTORNEYS FOR THE STATE OF FLORIDA ARCHERDANIELS BECAUSE OF ITS REGULAR SUPPLY OF CO2 FEEDSTOCK BOASTS SOME NATURAL ADVANTAGES IN THE INDUSTRY THAT COULD EQUATE INTO LOW PRICES EVEN FLORIDA ANTITRUST OFFICIALS AGREE THAT FOR A TIME AT LEAST THE AGRICULTURAL CONCERN COMPETED AGGRESSIVELY ARCHERDANIELS SEEKING TO AVOID BEING CHARGED WITH PRICE FIXING SAID IN A 1992 LETTER TO FLORIDA ANTITRUST AUTHORITIES IN AREAS WHERE ADM WAS NOT A COMPETITOR PRODUCT PRICES WERE CONSIDERABLY HIGHER THAN THE AREAS IN WHICH ADM SOLD ITS PRODUCT BUT THE FLORIDA ANTITRUST DIVISION ALLEGES THAT PRIOR TO 1988 AND BEGINNING AGAIN IN 1991 ARCHERDANIELS WAS A PART OF THE ALLEGED CONSPIRACY IN THE ARCHERDANIELS LETTER AN ATTORNEY FOR THE COMPANY SAID ARCHERDANIELS WASN'T ITSELF INVOLVED BUT KNEW OF EVIDENCE THAT COLLUSION EXISTED THERE WAS A LACK OF REAL COMPETITION AMONG THE OTHER MAJOR PRODUCERS ARCHERDANIELS SAID THE COMPANY SAID IT WAS IN A POSITION TO DESCRIBE NUMEROUS CUSTOMER MEETINGS AND DISCUSSIONS IN WHICH COMMENTS ABOUT ANTICOMPETITIVE BEHAVIOR WERE MADE THE COMPANY WAS CHARGED ANYWAY THE ARCHERDANIELS LETTER LAYS OUT EXAMPLES OF WHAT HAPPENS IN THE INDUSTRY DURING DRINKS AT ONE ST PATRICK'S DAY GATHERING MIKE BARONI AN EXECUTIVE IN ARCHERDANIEL'S CO2 DIVISION SAID ANYONE WHO SOLD CARBON DIOXIDE BELOW 45 A TON WAS A HOMOSEXUAL THE LETTER SAID THE LETTER HOWEVER INSISTED THE COMMENT WASN'T PRICE COLLUSION AND WAS NOT SERIOUSLY CONSIDERED BY THOSE IN ATTENDANCE MR BARONI HAD LUNCH FROM TIME TO TIME WITH MR SABO THEN WORKING FOR ANOTHER CO2 SUPPLIER KNOWN AS THERMICE AT THESE LUNCHES THEY DISCUSSED WHAT WERE KNOWN AS SPLIT CONTRACT CUSTOMERS CLIENTS THAT ARCHERDANIELS AND THERMICE SHARED MR SABO WOULD DETAIL COMING PRICE INCREASES THE LETTER SAID MR SABO IN AN INTERVIEW DENIED THIS THE LETTER SAID THE INFORMATION WAS CERTAINLY HELPFUL IN MAKING ITS OWN PRICING DECISIONS BUT THE COMPANY DENIED IT MADE THE DECISIONS BECAUSE OF THAT INFORMATION BY EARLY 1991 ARCHERDANIELS STARTED QUOTING HIGH PRICES FROM A PUBLISHED PRICE LIST WHEN ASKED FOR BIDS ACCORDING TO PLAINTIFFS IN THE LITIGATION THIS MOVE ACCORDING TO PLAINTIFFS WAS JUST A COVERT WAY TO PARTICIPATE IN PRICE FIXING BY NOT ENCROACHING ON A COMPETITOR'S BUSINESS IN ITS LETTER ARCHERDANIELS SAID ITS SALES PEOPLE AT A MARCH 1991 MEETING REFERRED TO THE NEW PRICING SCHEDULE AS JOINING THE CLUB BUT THE COMPANY'S LAWYER IN THE LETTER INSISTED THE COMMENTS WERE TONGUE IN CHEEK 9311170139 931117 ENTERPRISE FOCUS ON FRANCHISING US FRANCHISERS EXPECT NAFTA TO BOOST MEXICAN BUSINESS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL US FRANCHISERS EXPANDING IN MEXICO HOPE FOR A NAFTA WINDFALL MANY FRANCHISERS SAY THEIR MEXICAN OPERATIONS WILL BE MORE LUCRATIVE IF CONGRESS RATIFIES THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT AMONG OTHER THINGS NAFTA WOULD END MANY FORMAL TRADE BARRIERS BETWEEN THE US AND MEXICO A RUSH TO SET UP MEXICAN FRANCHISES BY US COMPANIES BEGAN IN 1991 WHEN MEXICO DISMANTLED A TECHNOLOGYTRANSFER BUREAUCRACY THAT HAD IMPEDED FRANCHISERS THERE'S EXPLOSIVELY STRONG INTEREST IN MEXICO BY US FRANCHISERS SAYS PHILIP F ZEIDMAN A FRANCHISING LAWYER IN WASHINGTON DC TCBY ENTERPRISES INC FOR EXAMPLE HAS OPENED 19 FROZENYOGURT FRANCHISES IN MEXICO SINCE 1990 BY WORKING THROUGH A MASTER LICENSEE IT SAYS IT AIMS TO MAINTAIN THAT EXPANSION PACE THE PROPOSED PACT WOULD END A 20 IMPORT DUTY ON YOGURT THAT TCBY SHIPS TO MEXICO FROM DALLAS NOTES HARTSELL C WINGFIELD PRESIDENT OF THE INTERNATIONAL DIVISION OF THE LITTLE ROCK ARK COMPANY FREE TRADE THROUGH NAFTA ALSO WOULD EVENTUALLY GIVE MEXICO'S CONSUMERS MORE BUYING POWER AND INCREASE DEMAND FOR FRANCHISE CHAINS' PRODUCTS SAYS JERRY L SALVAGGIO SENIOR VICE PRESIDENT OF WHATABURGER INC A CORPUS CHRISTI TEXAS FASTFOOD COMPANY THAT HAS FRANCHISED THREE UNITS IN MEXICO AND EXPECTS TO OPEN MORE THERE MEXICO HAS A GROWING MIDDLE CLASS THAT LIKES AMERICAN PRODUCTS HE ADDS NAFTA PROPONENTS SAY FREE TRADE ALSO WOULD MAKE MORE MEXICANS WEALTHY ENOUGH TO BUY FRANCHISES WE WOULD LOVE TO SEE NAFTA GET PASSED SAYS WILLIAM VAN EPPS SENIOR VICE PRESIDENT OF AFC CO WHOSE POPEYE'S AND CHURCH'S CHICKEN CHAINS ARE EXPANDING IN MEXICO US SHOE CORP'S LENSCRAFTERS UNIT AN OPTICAL RETAILER IN CINCINNATI THAT DOESN'T SELL FRANCHISES IN THE US SAYS IT EXPECTS TO ENTER THE MEXICAN MARKET THROUGH FRANCHISING ETHICS ENFORCEMENT BY FRANCHISERS MOVES FORWARD ON PAPER AT LEAST THE INTERNATIONAL FRANCHISE ASSOCIATION HAS NAMED A NEW ETHICS COMMITTEE TO EVALUATE COMPLAINTS UNDER THE FRANCHISER TRADE GROUP'S BEEFEDUP CODE OF ETHICS ANNOUNCED LAST YEAR THE CODE SOUGHT IN PART TO REDUCE PRESSURE FOR NEW FEDERAL AND STATE FRANCHISING LAWS THE CODE SPELLS OUT PRINCIPLES OF CONDUCT IN FRANCHISE SALES AND FRANCHISER DEALINGS WITH FRANCHISEES BUT THAT STAB AT SELFREGULATION STRUCK MANY FRANCHISEES AS INEFFECTUAL THE IFA THOUGH VOWING TO SUSPEND OR EXPEL THE MOST FLAGRANT VIOLATORS OF THE CODE STILL HADN'T ESTABLISHED DETAILED ENFORCEMENT PROCEDURES THE NEW ETHICS PANEL MEETING FORMALLY AT LEAST TWICE A YEAR WILL RECOMMEND SPECIFIC ENFORCEMENT ACTIONS TO THE IFA'S EXECUTIVE COMMITTEE THIS PANEL WILL TRY TO RESOLVE COMPLAINTS AND DISPUTES WITH A BIG EMPHASIS ON AVOIDING LITIGATION AND LEGISLATION SAYS JOHN R REYNOLDS EXECUTIVE VICE PRESIDENT OF THE IFA SIGNIFICANTLY THE PANEL INCLUDES TWO FRANCHISEES AS WELL AS TWO FRANCHISERS THE CHAIRMAN IS STEVEN R SIEGEL PRESIDENT OF WATERMARK DONUT CO BOSTON WHICH OPERATES 18 UNITS FRANCHISED BY DUNKIN' DONUTS INC YEARS AGO THE IFA HAD A SEPARATE ETHICS PANEL BUT NO FRANCHISEES THEN WERE INCLUDED IN THE ASSOCIATION THE MERE EXISTENCE OF THE PANEL EVEN WITH FRANCHISEES DOESN'T IMPRESS SOME ADVOCATES OF STRONG ENFORCEMENT HOWEVER THE IFA HAS HAD THE CODE OUT FOR ALMOST A YEAR BUT HAS TAKEN NO VISIBLE ACTION AGAINST VIOLATORS SAYS ANDREW C SELDEN A MINNEAPOLIS LAWYER WHO REPRESENTS BOTH FRANCHISERS AND FRANCHISEES UNTIL THE IFA ACTUALLY DOES SOMETHING IT'S ALL JUST RHETORIC MR SELDEN ADDS NOTHING SUCCEEDS LIKE SUCCESS THEN WHY DID THESE FRANCHISES FAIL THOUGH HARDLY A HOUSEHOLD NAME SMI/USAINC IN WACO TEXAS HAS SOLD THOUSANDS OF FRANCHISES THROUGH SUCCESS MOTIVATION INSTITUTE AND LEADERSHIP MANAGEMENT INC BUT THE NUMBER OF ACTIVE FRANCHISES FELL TO FEWER THAN 1000 LAST MARCH FROM ABOUT 3000 FOUR YEARS EARLIER ACCORDING TO COMPANY FIGURES FILED WITH THE FEDERAL TRADE COMMISSION DISGRUNTLED SMI/USA FRANCHISEES HAVE LONG MAINTAINED THAT THE COMPANY DOESN'T SELL VIABLE BUSINESS OPPORTUNITIES THESE CRITICS ALSO SAY MANY FRANCHISEES QUIT AFTER FAILING TO TURN A PROFIT ON PRODUCTS THAT PROVED DIFFICULT TO MARKET NOW THE JUSTICE DEPARTMENT HAS FILED A COMPLAINT AGAINST THE COMPANY ON BEHALF OF THE FTC THE COMPLAINT FILED LATE LAST MONTH IN FEDERAL COURT IN WACO ACCUSES SMI/USA OF MISLEADING FRANCHISEES ABOUT THE EASE OF SELLING ITS PRODUCTS SUCH AS MOTIVATIONAL TAPES AND ABOUT THE INCOME THAT THEY COULD EXPECT JOSEPH HANEY AND JOHN APPEL TWO FORMER SMI/USA OFFICERS DENIED THE ALLEGATIONS BUT NEGOTIATED SETTLEMENTS IN WHICH THEY AGREED NOT TO SELL SIMILAR BUSINESS OPPORTUNITIES THE COMPANY AND SEVERAL OTHER OFFICIALS STILL FACE THE GOVERNMENT'S CHARGES THE FTC FIRST CHALLENGED THE COMPANY IN 1970 WITH AN ADMINISTRATIVE ACTION PARTLY ALLEGING THAT ITS CHAIRMAN PAUL J MEYER HAD WRONGLY TOLD FRANCHISEES THAT SUCCESS AS A DISTRIBUTOR DIDN'T REQUIRE ANY SPECIAL ABILITY OTHER THAN A DESIRE TO SUCCEED IN A CONSENT ORDER LATER THAT YEAR THE COMPANY AGREED TO MODIFY ITS MARKETING PRACTICES THE FEDERAL COMPLAINT FILED IN WACO ALLEGES THAT SMI/USA REPEATEDLY VIOLATED THE 1970 AGREEMENT THE COMPANY ACKNOWLEDGES A HIGH FAILURE RATE FOR FRANCHISEES BUT DENIES WRONGDOING WE THINK WE CAN SHOW AND PROVE THAT THE GOVERNMENT IS OVERREACHING SAYS GARY L RICHARDSON A TULSA OKLA ATTORNEY FOR SMI/USA IN JULY A FEDERAL JUDGE IN DALLAS DISMISSED CHARGES OF HARASSMENT BROUGHT BY THE COMPANY AGAINST THE FTC MANHATTAN BAGEL CO AN EATONTOWN NJ BAGELSTORE FRANCHISER IS SEEKING TO SELL 1 MILLION IN STOCK TO PUBLIC INVESTORS THE FASTGROWING COMPANY WITH 28 FRANCHISED UNITS IN FIVE EASTERN STATES PLANS TO MOVE INTO THREE ADDITIONAL REGIONS A YEAR FOR THE NEXT FOUR YEARS BUT THE OFFERING MEMORANDUM SAYS THE STOCK INVOLVES A HIGH DEGREE OF RISK AND LISTS NUMEROUS REASONS SUCH AS THE NEED FOR STILL MORE FINANCING BRIEFS MY FAVORITE MUFFIN TOO INC IN CRANBURY NJ SAYS ONE IN FIVE CUSTOMERS AT ITS 37 FRANCHISED UNITS HAS SWITCHED TO FATFREE MUFFINS INTRODUCED IN AUGUST QUICKPRINTING FRANCHISER FRANKLIN'S SYSTEMS INC IN ATLANTA NOW OFFERS TO FRANCHISE THREE SIZES OF STORES RATHER THAN JUST ONE THE COMPANY SAYS FRANCHISEES WITH SMALLER STORES CAN UPGRADE LATER IF THEIR BUSINESS GROWS 9311170138 931117 TECHNOLOGY CABLE FIRMS DELIVER WIRELESS PHONE CALL BYPASSING NYNEX CORP BOSTON THREE CABLE COMPANIES IN MASSACHUSETTS USED THEIR SYSTEMS TO TRANSMIT A WIRELESS TELEPHONE CALL THAT BYPASSED THE LOCAL PHONE COMPANY NYNEX CORP CABLEVISION OF BOSTON CONTINENTAL CABLEVISION INC AND TIME WARNER INC'S TIME WARNER CABLE USED EXISTING BOSTONAREA CABLE LINES AND SOME SPECIAL EQUIPMENT INSTALLED FOR THE DEMONSTRATION TO DELIVER A WIRELESS PHONE CALL FROM BOSTON TO NEWTON ABOUT 10 MILES AWAY A SECOND CALL WAS PLACED TO MALDEN ABOUT EIGHT MILES AWAY THE DEMONSTRATION WAS INTENDED TO SHOW HOW THE CABLETELEVISION INFRASTRUCTURE MIGHT BE ABLE TO CARRY WIRELESSCOMMUNICATIONS SERVICES IN THE FUTURE SAID HANK FERRIS GENERAL MANAGER OF CABLEVISION OF BOSTON LIMITED PARTNERSHIP AN AFFILIATE OF CABLEVISION SYSTEMS CORP IN NEW YORK THE CABLE INDUSTRY HAS REACHED THE POINT WHERE IT CAN COMPETE IN THE DELIVERY OF TELECOMMUNICATIONS SERVICES MR FERRIS SAID A NUMBER OF CABLE OPERATORS HAVE DEMONSTRATED THEIR ABILITY TO CARRY WIRELESS CALLS THAT ALSO CIRCUMVENT THE LOCAL PHONE COMPANY BUT THE BOSTON DEMONSTRATION WAS THE FIRST TIME THREE CABLE OPERATORS HAVE COLLABORATED FOR SUCH A SHOWING MR FERRIS SAID 9311170137 931117 BAXTER TO CUT 73 OF JOBS PLANS CHARGES LOSS FOR 4THPERIOD SEEN ON 925 MILLION ITEM EXECUTIVE CHANGES SET BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL BAXTER INTERNATIONAL INC UNVEILED A REMEDY FOR ITS BUSINESS AND LEGAL TROUBLES THAT INCLUDES 925 MILLION IN FOURTHQUARTER CHARGES AND PLANS TO CUT 4500 JOBS OR 73 OF ITS WORK FORCE THE WORLD'S LARGEST HOSPITALPRODUCTS MAKER MOVING TO OFFSET FLAGGING EARNINGS IN ITS CORE MEDICALSUPPLY BUSINESS AND TO REVIVE ITS SHARE PRICE SAID IT WILL TAKE THE CHARGES TO RESTRUCTURE AND COVER THE COST OF BREASTIMPLANT AND OTHER LITIGATION WHICH WILL PRODUCE FOURTHQUARTER AND FULLYEAR LOSSES IN ITS THIRD MAJOR RESTRUCTURING IN RECENT YEARS BAXTER SAID IT WILL REDUCE ITS WORK FORCE CURRENTLY 61300 EMPLOYEES OVER THE NEXT FIVE YEARS THE DEERFIELD ILL COMPANY ALSO PLANS TO SELL AS A PACKAGE ITS FIVE DIAGNOSTICPRODUCT DIVISIONS WHICH GENERATED 675 MILLION IN 1992 SALES THE UNITS MAKE A NUMBER OF DEVICES THAT PERFORM A VARIETY OF FUNCTIONS INCLUDING EVALUATING BLOOD CHEMISTRY AND ASSISTING IN THE DIAGNOSIS OF HEART ATTACKS THE COMPANY HAD MORE THAN 8 BILLION IN 1992 SALES BAXTER ALSO SAID IT PLANS TO REINVEST NEARLY 2 BILLION OVER THE NEXT THREE YEARS IN WHAT IT CONSIDERS ITS POTENTIALLY MOST LUCRATIVE VENTURES THESE INCLUDE KIDNEY DIALYSIS SOLUTIONS AND PRODUCTS AND CARDIOVASCULAR PRODUCTS SUCH AS THE VENTRICULAR ASSIST DEVICES MADE BY BAXTER'S NOVACOR UNIT THE BULK OF THE CHARGES OR 700 MILLION IS DESIGNED TO COVER THE WORKFORCE REDUCTIONS AND THE WRITEDOWN OF CERTAIN ASSETS ANOTHER 225 MILLION IS DEDICATED TO PAYING FOR FUTURE COSTS OF LITIGATION THESE LAWSUITS ARE MOSTLY RELATED TO BREAST IMPLANTS AND TO THE AIDS VIRUS CONTRACTED BY HEMOPHILIACS WHO IN THE EARLY 1980S USED BAXTER AND OTHER COMPANIES' BLOODCLOTTING FACTOR WHICH TURNED OUT TO BE INFECTED BAXTER'S SHARE PRICE HAS SUNK IN RECENT MONTHS FROM A 52WEEK HIGH OF 35125 TO THE MID TO LOW20S UNDER A BARRAGE OF BAD NEWS AND TROUBLING FACTORS IN THE HOSPITALSUPPLY BUSINESS BAXTER STOCK ROSE 125 CENTS TO 2425 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE COMPANY HAS SUFFERED PRINCIPALLY FROM FALLING PROFIT MARGINS AS MORE OF ITS HOSPITAL SALES THIS YEAR WERE DERIVED FROM THE DISTRIBUTION OF OTHER COMPANIES' PRODUCTS RATHER THAN THE SALE OF ITS OWN GLOVES AND SURGICAL KITS WHICH OFFER A HIGHER RETURN BAXTER'S BIG HOSPITAL AND LABORATORY CUSTOMERS THEMSELVES ARE UNDER INCREASING PRICING PRESSURE IN THE ERA OF MANAGED CARE AND HEALTHCARE REFORM THERE HAS BEEN BUSINESS FALLOUT TOO FROM BAXTER'S GUILTY PLEA IN AN ARAB BOYCOTT CASE AND FROM A SUSPENSION OF NEW FEDERAL CONTRACTS IMPOSED BY THE DEPARTMENT OF VETERANS AFFAIRS BAXTER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER VERNON R LOUCKS JR HAS BEEN UNDER PRESSURE AS A RESULT OF SUCH FACTORS YESTERDAY THE COMPANY SAID IT IS CREATING A NEW OFFICE OF THE CHIEF EXECUTIVE CONSISTING OF MR LOUCKS JAMES R TOBIN PRESIDENT AND CHIEF OPERATING OFFICER AND LESTER B KNIGHT AND TONY L WHITE BOTH VICE PRESIDENTS THE COMPANY SAID THIS MOVE DOESN'T REPRESENT ANY DIMINUTION OF MR LOUCKS'S AUTHORITY AND THAT HE CONTINUES TO SUPERVISE THE OTHER THREE EXECUTIVES RATHER A BAXTER SPOKESMAN SAID THE MOVE IS DESIGNED TO CONSOLIDATE VARIOUS LAYERS OF MANAGEMENT AND TO ASSIST IN STREAMLINING THE COMPANY IN OTHER PERSONNEL MOVES BAXTER SAID HARRY M KRAEMER 38 YEARS OLD WILL BECOME SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SUCCEEDING ROBERT J LAMBRIX 54 WHO WILL TAKE EARLY RETIREMENT ALSO ARTHUR F STAUBITZ 57 WHO HAS BEEN ACTING GENERAL COUNSEL AND VICE PRESIDENT WAS NAMED SENIOR VICE PRESIDENT SECRETARY AND GENERAL COUNSEL THAT POST BECAME VACANT EARLIER THIS YEAR WITH THE RESIGNATION OF G MARSHALL ABBEY WHO HAD SPEARHEADED THE BAXTER MIDDLE EAST EFFORTS THAT RESULTED IN THE COMPANY'S ARAB BOYCOTT GUILTY PLEA KENNETH ABRAMOWITZ AN ANALYST WITH SANFORD C BERNSTEIN & CO SAID THE MOVE PROBABLY IS THE BAXTER BOARD'S IDEA I THINK THE BOARD WANTS TO PROPERLY GROOM THE SUCCESSOR TO MR LOUCKS MR ABRAMOWITZ SUGGESTED THE BOARD WANTS MR LOUCKS TO HAVE THE PERSPECTIVE OF SEVERAL PEOPLE THE IDEA IS THAT FOUR HEADS ARE BETTER THAN ONE BAXTER'S OTHER MAJOR RESTRUCTURINGS TOOK PLACE IN 1986 THE YEAR AFTER ITS MERGER WITH AMERICAN HOSPITAL SUPPLY CORP WITH THE ELIMINATION OF 5000 POSITIONS AND IN 1990 WHEN IT TOOK A 566 MILLION CHARGE TO TRIM ITS WORLDWIDE MANUFACTURING WORK FORCE BY ABOUT 10 AT THE TIME ANALYSTS CONSIDERED THE COMPANY'S WORK FORCE OF 64300 TO BE BLOATED BUT THE TOTAL HASN'T SHRUNK BY TOO MUCH SINCE THEN A SPOKESMAN SAID THAT ALTHOUGH THE LAYOFFS DID OCCUR HIRINGS TOOK PLACE IN OTHER COMPANY DIVISIONS THE BAXTER UNITS PUT ON THE BLOCK ARE ITS BARTELS MICROSCAN AND PARAMAX SYSTEMS DIVISIONS IN CALIFORNIA AND THE STATE OF WASHINGTON AND THE DADE AND STRATUS DIVISIONS IN SOUTH FLORIDA ASSUMING IT FINDS A BUYER AT THE RIGHT PRICE BAXTER PLANS TO RETAIN RIGHTS TO DISTRIBUTE ALL DIAGNOSTIC PRODUCTS IT CURRENTLY MAKES AND OBTAIN DISTRIBUTION RIGHTS FOR PRODUCTS MADE BY THE ACQUIRING COMPANY BAXTER'S ANNOUNCEMENT DISCLOSED FOR THE FIRST TIME ITS ESTIMATE OF THE TOTAL LIABILITY EXPECTED OVER BREAST IMPLANTS AND HEMOPHILIARELATED AIDS VIRUS BAXTER NEVER MADE THE SILICONE IMPLANTS ITSELF BUT INHERITED POTENTIAL LIABILITY IN THE MERGER WITH AMERICAN HOSPITAL SUPPLY THE COMPANY SAID TOTAL BREAST IMPLANT LIABILITY PROBABLY WOULD RANGE FROM 475 MILLION TO 618 MILLION IN A PROPOSED GLOBAL SETTLEMENT OF THE LITIGATION THAT HAS BEEN REACHED BY MANUFACTURERS AND A GROUP OF PLAINTIFFS' LAWYERS OF THAT AMOUNT INSURANCE WOULD BE EXPECTED TO PAY FOR 347 MILLION TO 372 MILLION BAXTER SAID THE COMPANY SAID TOTAL POTENTIAL LIABILITY RELATED TO BLOODCLOTTING PRODUCTS COULD REACH 130 MILLION OF WHICH INSURANCE WOULD PAY FOR 83 MILLION TO 94 MILLION