LG&E ENERGY CORP SAID IT WILL SPLIT ITS ENERGY BUSINESSES INTO POWER GENERATION AND POWER DISTRIBUTION SEGMENTS APPARENTLY A NEW TYPE OF ORGANIZATION FOR ELECTRIC UTILITIES BEGINNING JAN 1 A NEW UNIT LG&E ENERGY SERVICES WILL MANAGE POWERGENERATION BUSINESSES WHILE THE PRIMARY UTILITY UNIT LOUISVILLE GAS & ELECTRIC CO WILL CONCENTRATE ON CUSTOMER SERVICE AND PACKAGING ENERGY FOR CUSTOMERS THE LOUISVILLE KY HOLDING COMPANY SAID EDWARD J CASEY JR 35 YEARS OLD WILL BE GROUP PRESIDENT OF THE LG&E ENERGY SERVICES UNIT MR CASEY IS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF LG&E ENERGY CORP JIM TRAA 55 WHO HAD BEEN PRESIDENT OF THE COMPANY'S NONUTILITY POWERGENERATION BUSINESS LG&E POWER RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY SAID 9311170134 931117 MEDICAL CARE SEEMS WILLING TO CONSIDER ANOTHER BID BY SURGICAL CARE AFFILIATES BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS DONALD STEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MEDICAL CARE AMERICA INC INDICATED TUESDAY THAT THE COMPANY WOULD CONSIDER A SECOND ACQUISITION BID BY SURGICAL CARE AFFILIATES INC THE INDICATION CAME FOLLOWING A TWOHOUR MEETING TUESDAY BETWEEN MR STEEN AND REPRESENTATIVES OF A DISSIDENT SHAREHOLDERS GROUP LED BY THE BASS FAMILY OF FORT WORTH TEXAS WE DON'T THINK IT'S NECESSARY TO REVIEW THE SURGICAL CARE PROPOSAL THAT THE BOARD REJECTED MR STEEN SAID IN AN INTERVIEW FOLLOWING THE MEETING BUT WE WILL REVIEW ALL SERIOUS PROPOSALS IN THE FUTURE WHEN ASKED SPECIFICALLY WHETHER THAT INCLUDED A SECOND SURGICAL CARE OFFER MR STEEN RESPONDED THAT IS CONSISTENT WITH WHAT I SAID DAVID H GLASER MANAGING DIRECTOR AT BEAR STEARNS & CO WHICH IS SERVING AS AN ADVISER TO SURGICAL CARE SAID SURGICAL CARE ALREADY HAS A STRONG BID ON THE TABLE AND DOESN'T WANT TO BID AGAINST ITSELF HE ADDED THAT SURGICAL CARE A NASHVILLE TENNBASED OPERATOR OF OUTPATIENT SURGERY CENTERS HASN'T HAD ANY COMMUNICATION FROM MEDICAL CARE SINCE SURGICAL CARE'S ORIGINAL PROPOSAL WAS REJECTED WHEN ASKED WHETHER SURGICAL CARE MIGHT BE WILLING TO RAISE OR CHANGE ITS BID MR GLASER REFERRED TO A LETTER THAT JOEL C GORDON SURGICAL CARE'S CHAIRMAN AND CHIEF EXECUTIVE SENT TO MR STEEN IN MIDOCTOBER THE LETTER STATED THAT SURGICAL CARE WOULD BE PREPARED TO RECEIVE INFORMATION FROM MEDICAL CARE WHICH MIGHT JUSTIFY A GREATER CONSIDERATION MR GLASER SAID YESTERDAY WE STILL STAND BY THAT ON OCT 29 MEDICAL CARE'S BOARD UNANIMOUSLY REJECTED SURGICAL CARE'S OFFER TO EXCHANGE 135 SHARES OF ITS COMMON STOCK FOR EACH MEDICAL CARE SHARE IN A STOCK SWAP VALUED AT NEARLY 1 BILLION THAT REJECTION SPAWNED GRUMBLING AMONG LARGE SHAREHOLDERS LED BY INVESTORS PERRY BASS AND HIS SONS SID AND LEE THROUGH VARIOUS ENTITIES THEY ARE ESTIMATED TO HOLD A 3 STAKE IN THE DALLASBASED OPERATOR OF OUTPATIENT SURGERY CENTERS AND PROVIDER OF HOMEINFUSION THERAPIES LAST WEEK THEIR REPRESENTATIVES HELD A NEW YORK STRATEGY SESSION WITH DISSIDENT SHAREHOLDERS PURPORTING TO REPRESENT 28 OF MEDICAL CARE'S 365 MILLION COMMON SHARES OUTSTANDING I AM SHOCKED AND DISMAYED THAT THE COMPANY HAS NOT YET SEEN FIT TO TALK WITH SURGICAL CARE AFFILIATES THOMAS TAYLOR A PROMINENT BASS ADVISER SAID IN A STATEMENT ISSUED AFTER TUESDAY'S MEETING HE ADDED THAT HE WAS PLEASED THAT MR STEEN HAS NOW INDICATED A WILLINGNESS TO TALK WITH SURGICAL CARE IF THEY WERE TO COME FORWARD WITH AN ENHANCED PROPOSAL MR STEEN SAID THAT THE GROUP ISSUED NO ULTIMATUMS DURING TUESDAY'S MEETING WHICH HE DESCRIBED AS CORDIAL BUT SERIOUS AND ASKED FOR MORE DETAILED FINANCIAL INFORMATION ABOUT THE COMPANY'S CAMPAIGN TO TURN AROUND ITS TROUBLED HOMEINFUSION BUSINESS AND EXPAND UPON ITS JOINT OPERATING AGREEMENTS WITH COLUMBIA HEALTHCARE CORP THE LARGE LOUISVILLE KYBASED HOSPITAL CONCERN MR STEEN SAID THAT THE COMPANY HOPES TO PROVIDE ALL SHAREHOLDERS WITH ADDITIONAL INFORMATION SOON HOWEVER HE ALSO EMPHASIZED THAT A POSSIBLE SECOND SURGICAL CARE BID IS ONLY ONE OF THE OPTIONS THAT WOULD BE CONSIDERED BY DILLON READ & CO WHICH HAS BEEN HIRED TO REVIEW MEDICAL CARE'S ALTERNATIVES WE ARE NOT SHOPPING THE COMPANY AND THEY DID NOT ASK US TO SHOP THE COMPANY HE SAID A MERGER OF MEDICAL CARE AND SURGICAL CARE WOULD COMBINE THE NATION'S TWO LARGEST OPERATORS OF OUTPATIENT SURGERY CENTERS MOREOVER SOME MEDICAL CARE SHAREHOLDERS VIEW THE POSSIBLE MERGER AS A MEANS OF SALVAGING A LONGTROUBLED INVESTMENT MEDICAL CARE WHOSE STOCK WAS TRADING AS HIGH AS 58 A SHARE AFTER THE COMPANY WAS FORMED IN SEPTEMBER 1992 HAS BEEN BATTERED BY SEVERAL QUARTERS OF DISAPPOINTING EARNINGS AS IT STRUGGLES TO OVERHAUL AN INFUSION BUSINESS HOBBLED BY ITS HIGH COST STRUCTURE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MEDICAL CARE CLOSED AT 22 UNCHANGED WHILE SURGICAL CARE ENDED AT 19625 UP 125 CENTS GLENN RUFFENACH IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9311170133 931117 DAYTON HUDSON AND PENNEY NET FELL IN QUARTER BY CHRISTINA DUFF AND BOB ORTEGA STAFF REPORTERS OF THE WALL STREET JOURNAL FISCAL THIRDQUARTER EARNINGS AT DAYTON HUDSON CORP AND JC PENNEY CO SENT MIXED SIGNALS ABOUT HOW THE NATION'S RETAILERS WILL FARE DURING THE CRITICAL HOLIDAY SHOPPING SEASON DAYTON HUDSON THE FOURTHLARGEST RETAILER SAID CONTINUED TEPID SALES AT ITS MODERATE AND UPSCALE DEPARTMENT STORE DIVISIONS DROVE EARNINGS DOWN 25 TO 43 MILLION OR 54 CENTS A SHARE FROM 57 MILLION OR 72 CENTS A SHARE A YEAR EARLIER THE LATEST PERIOD WHICH ENDED OCT 30 INCLUDED A CHARGE OF 4 MILLION OR FIVE CENTS A SHARE TO COVER A RETROACTIVE TAX RATE INCREASE REVENUE ROSE 66 TO 463 BILLION FROM 434 BILLION PENNEY CO THE NO 5 RETAILER REPORTED A SLIGHT DROP IN NET INCOME TO 185 MILLION OR 69 CENTS A SHARE FROM 186 MILLION OR 70 CENTS A SHARE A YEAR EARLIER BUT THE MOST RECENT QUARTER WHICH ENDED OCT 30 INCLUDED CHARGES TOTALING 50 MILLION OR 19 CENTS A SHARE TO COVER DEBT RETIREMENT AND DEFERRED TAXES PENNEY'S SALES CLIMBED 91 TO 473 BILLION FROM 434 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DAYTON HUDSON'S SHARES WERE QUOTED AT 7250 UP 125 CENTS PENNEY'S SHARES WERE QUOTED AT 53875 UP 1375 ON AN OPERATING BASIS PENNEY HAD AN EXCELLENT QUARTER ABOVE EXPECTATIONS SAID STEVEN KERNKRAUT AN ANALYST AT BEAR STEARNS & CO AND THE COMPANY STANDS TO PERFORM WELL AT CHRISTMAS AS RETAIL EXPERTS EXPECT VALUEPRICED STORES TO FARE BEST THIS SEASON PENNEY SAID SALES FROM ITS CHRISTMAS CATALOG ARE MORE THAN 30 HIGHER THAN A YEAR AGO CONSUMERS' PREFERENCE FOR GOOD BUYS SHOULD ALSO HELP DAYTON HUDSON'S TARGET STORES UNIT WHICH IN THE LATEST QUARTER POSTED A STRONG OPERATING PROFIT GAIN ON A 6 RISE IN SALES AT STORES OPENED AT LEAST A YEAR BUT THE REST OF MINNEAPOLISBASED DAYTON HUDSON WHICH ALSO OPERATES MERVYN'S DAYTON'S HUDSON'S AND MARSHALL FIELD'S STORES IS HEADING FOR CHRISTMAS WITH LESS MOMENTUM DAYTON HUDSON HAS BEEN STRUGGLING ALL YEAR WITH ITS MODERATELY PRICED MERVYN'S UNIT WHICH HAS LARGE EXPOSURE TO THE WEAK ECONOMY IN THE WEST THE PARENT SAID MERVYN'S OPERATING PROFIT DECLINED SIGNIFICANTLY AND SAMESTORE SALES FELL 7 ANALYST THOMAS TASHJIAN OF FIRST MANHATTAN SAID IT'S UNLIKELY THE COMPANY'S EFFORTS TO TURN MERVYN'S AROUND WILL PAY OFF UNTIL AT LEAST THE SPRING AMONG OTHER STEPS THE UNIT IS BROADENING ITS CAREER AND CASUALWEAR SELECTION AND LOWERING PRICES THE COMPANY'S DEPARTMENT STORES MEANWHILE HAVE BEEN A BIG DISAPPOINTMENT FOR MANY YEARS SAID ANALYST JEFFREY EDELMAN OF CJ LAWRENCE THE STORES WHICH POSTED FLAT SAMESTORE SALES AND PROFITS IN THE LATEST QUARTER NEED TO REDUCE PRICES TO BE MORE COMPETITIVE HE SAID IN THE NINE MONTHS DAYTON HUDSON'S EARNINGS FELL 28 TO 97 MILLION OR 117 A SHARE FROM 134 MILLION OR 162 A SHARE A YEAR AGO REVENUE ROSE 77 TO 1295 BILLION FROM 1203 BILLION FOR PLANO TEXASBASED PENNEY THE BIGGEST BOOST TO EARNINGS IN THE LATEST QUARTER CAME FROM CATALOG SALES WHICH CLIMBED 15 DUE TO PENNEY'S STRONG MARKETING PUSH FOLLOWING THE DEMISE OF SEARS ROEBUCK & CO'S CATALOG EARLIER THIS YEAR THE COMPANY'S GROSS PROFIT MARGIN IMPROVED TO 337 OF SALES FROM 336 A YEAR AGO FOR ITS FIRST NINE MONTHS PENNEY'S NET INCOME ROSE 25 TO 503 MILLION OR 189 A SHARE FROM 402 MILLION OR 153 A SHARE A YEAR AGO SALES GREW 62 TO 1266 BILLION FROM 1192 BILLION THE MORE RECENT PERIOD'S RESULTS INCLUDE A CHARGE OF 53 MILLION CONNECTED TO DEBT RESTRUCTURING AND A 51 MILLION GAIN FROM ACCOUNTING CHANGES FOR INCOME TAXES 9311170132 931117 INTERNATIONAL JAPAN ATTEMPTS TO BECOME A MEDIATOR TO SHIFT FOCUS FROM ITS TRADE SURPLUS BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN IS HOPING TO RECAST ITS ROLE IN THE WORLD TRADING SYSTEM TO BECOME A MEDIATOR RATHER THAN AN OUTCAST FOR MONTHS JAPANESE OFFICIALS HAVE BEEN STRUGGLING TO SHIFT THE SPOTLIGHT AWAY FROM THE COUNTRY'S YAWNING TRADE SURPLUS WHICH THE GOVERNMENT TUESDAY SAID ROSE AGAIN IN OCTOBER LONG BRANDED AN UNFAIR TRADER JAPAN RECENTLY HAS BEEN TRYING TO CHANGE THE TERMS OF THE DEBATE ARGUING THAT US POLICIES PARTICULARLY PRESIDENT CLINTON'S MANAGEDTRADE APPROACH TOWARD JAPAN ARE THE BIGGER THREAT TO FREE MARKETS WORLDWIDE NOW TOKYO SEES AN OPPORTUNITY NOT TO SPAR WITH WASHINGTON BUT TO CURRY FAVOR BY HELPING THE AMERICANS NAVIGATE SOME DIFFICULT NEGOTIATING WATERS EVEN BEYOND WEDNESDAY'S CRUCIAL VOTE IN WASHINGTON ON THE NORTH AMERICAN FREE TRADE AGREEMENT TRADE ISSUES WILL DOMINATE THE GLOBAL POLITICAL AGENDA FOR THE NEXT FEW WEEKS AND JAPAN IS IN THE THICK OF THINGS FOR INSTANCE THE JAPANESE SAY THEY WILL PLAY MIDDLEMAN BETWEEN THE US AND DEVELOPING ASIAN NATIONS AT A SUMMIT MEETING THIS WEEKEND OF THE 15MEMBER ASIAPACIFIC ECONOMIC COOPERATION FORUM IN SEATTLE IN THE WEEKS AFTER THAT JAPANESE LEADERS SAY THEY WILL MOVE TOWARD MAKING THE CONCESSIONS NEEDED TO HELP THE US SALVAGE THE CURRENT ROUND OF MULTILATERAL TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE OUR INTERESTS ARE COMMON IN THESE FIELDS SAYS YOSHIHIRO SAKAMOTO A DIRECTORGENERAL AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY WE WILL WORK TOGETHER FOR THE WORLD ECONOMY FROM NOW ON A COMPLETE IMAGE TRANSFORMATION MAY BE TOUGH ESPECIALLY SINCE THE MAIN REASON FOR JAPAN'S PUBLICRELATIONS PREDICAMENT ITS HUGE TRADE SURPLUS REMAINS JAPAN'S MERCHANDISE TRADE SURPLUS IN OCTOBER ROSE 17 FROM A YEAR EARLIER TO 1101 BILLION THE 34TH CONSECUTIVE MONTHLY INCREASE THE SURPLUS WITH THE US ROSE 54 JAPAN'S APPROACH TO TRADE ISSUES WITH THE US WILL BE ON FULL DISPLAY LATER THIS WEEK WHEN PRESIDENT CLINTON MEETS PRIME MINISTER MORIHIRO HOSOKAWA MR CLINTON IS EXPECTED TO BEAT THE SAME OLD DRUM THAT JAPAN SHOULD MOVE FASTER TO CUT ITS BILATERAL TRADE SURPLUS SPECIFICALLY MR CLINTON IS EXPECTED TO PRESS MR HOSOKAWA TO ADOPT AN INCOMETAX CUT WHICH THE US THINKS WILL BOOST JAPAN'S DOMESTIC ECONOMY AND THUS IMPORTS MR CLINTON ALSO LIKELY WILL PRESS MR HOSOKAWA TO SPEED PROGRESS IN BILATERAL FRAMEWORK TALKS WHICH ARE DESIGNED TO IMPROVE US BUSINESSES' ACCESS TO A RANGE OF JAPANESE MARKETS BUT THE JAPANESE SAY MR CLINTON ALSO WILL NEED MR HOSOKAWA'S HELP DURING THE APEC SESSION IN SEATTLE JAPANESE OFFICIALS PORTRAY THE MEETING AS A LOOMING TUGOFWAR BETWEEN THE US WHICH WANTS TO USE APEC AS A WAY TO ACCELERATE OPENING ASIAN MARKETS TO AMERICAN GOODS AND ASIA'S RAPIDLY DEVELOPING NATIONS SUCH AS CHINA AND INDONESIA WHICH WANT TO MOVE MUCH MORE SLOWLY TO PUT IT SIMPLY JAPAN IS IN THE POSITION OF SHARING AMERICAN CONCERNS AS WELL AS ASIAN CONCERNS SAYS A SENIOR FOREIGN MINISTRY OFFICIAL JAPAN HE SAYS REALIZES THE IMPORTANCE OF KEEPING THE US ENGAGED IN THE REGION ON THE OTHER HAND HE ADDS THERE IS SOME AMBIVALENCE FROM THE OTHER COUNTRIES IN THE REGION STEMMING FROM CONCERN ABOUT POSSIBLE DOMINANCE BY THE US JAPAN'S ROLE HE SAYS IS THAT OF A MEDIATOR BETWEEN THE TWO SIDES AS FOR THE CONTINUING TRADE IMBALANCE JAPANESE OFFICIALS SAID THAT APPEARANCES ASIDE THE STRONG YEN WAS STARTING TO HAVE AN IMPACT WHILE THE TRADE SURPLUS ROSE IN DOLLAR TERMS IT FELL 11 IN OCTOBER WHEN MEASURED IN YEN EXPORTS ROSE 12 IN DOLLAR TERMS BUT FELL 12 IN YEN TERMS THE IMPACT OF THE YEN'S RISE HAS BEEN BLUNTED BY JAPAN'S PERSISTENT RECESSION WHICH DAMPS DEMAND FOR IMPORTS IMPORTS ROSE 09 IN DOLLAR TERMS IN OCTOBER BUT FELL 12 IN YEN TERMS US OFFICIALS HAVE SAID IN RECENT WEEKS THAT JAPAN HAS OFFERED TO OPEN ITS RICE MARKET TO IMPORTS AS A CONCESSION TO BOOST THE STALLED GATT TALKS HOWEVER MR HOSOKAWA APPARENTLY CAN'T MAKE THAT POSITION PUBLIC UNTIL WINNING PASSAGE OF DOMESTIC POLITICAL REFORM LEGISLATION A VOTE ON THAT IS EXPECTED THIS WEEK 9311170131 931117 THE ICON CRISIS TINY PICTURES CAUSE CONFUSION BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL IT'S GETTING HARDER TO CREATE A GOOD ICON AFTER YEARS OF DESIGNING LITTLE PICTURES OF PENCILS MANILA FOLDERS TINY TRASH CANS AND OTHER DOODADS MEANT TO SIMPLIFY PERSONAL COMPUTING DESIGNERS ARE RUNNING OUT OF IMAGES THAT CAN TELL A STORY IRONICALLY WORDS THE ULTIMATE HERESY TO PURISTS ARE BEGINNING TO BE AFFIXED TO MORE ICONS TO MAKE THEM CLEARER THE MORE ICONS THAT ARE OUT THERE THE MORE DIFFICULT IT BECOMES TO COME UP WITH THINGS THAT WORK SAYS PAULIEN STRIJLAND MANAGER OF APPLE COMPUTER INC'S HUMAN INTERFACE GROUP NOT ONLY DOES A NEW IDEA HAVE TO BE GOOD BUT IT ALSO NEEDS TO BE DIFFERENT THAN EXISTING ICONS OR ELSE IT BECOMES CONFUSING USED WITH THE SIMPLE HANDHELD CONTROL CALLED THE MOUSE ICONS HELP A USER ISSUE COMMANDS TO THE COMPUTER WHEN ICONS ARE CLEAR THEY MAKE COMPUTER USE QUICK AND ALMOST INSTINCTIVE MOVE AN ARROW ONTO THE LITTLE PICTURE OF A MAILBOX CLICK THE MOUSE AND THE MACHINE QUICKLY SHIFTS TO ITS ELECTRONICMAIL FUNCTION BUT WHEN ICONS ARE ABSTRACT A PICTURE OF A CURLY ARROW OR SQUARES WITH CHECKMARKS THEY ARE NO BETTER THAN THE WORDS THEY WERE DESIGNED TO REPLACE ONE REASON IT'S SO DIFFICULT TO CREATE AN ICON IS THAT WE NEED TO FIND A WAY TO DEPICT A VERB OR ACTION THROUGH A PICTURE SAYS VIRGINIA HOWLETT DIRECTOR OF VISUAL INTERFACE DESIGN AT MICROSOFT CORP THE HARD PART IS TRYING TO COME UP WITH A NOUN OR OBJECT THAT REPRESENTS THE VERB TO FIND EFFECTIVE ICONS DESIGNERS HAVE LIFTED LIBERALLY FROM ANOTHER FIELD TRAFFIC SAFETY LOTUS DEVELOPMENT CORP IS PROUD OF ITS MERGE FUNCTION ICON WHICH MERGES FORM LETTERS WITH A DATABASE OF ADDRESSES OR NAMES THE CREATIVE LEAP A YELLOW TRAFFIC SIGN SHOWING THE INTERNATIONAL SIGN FOR MERGE SOME DESIGNERS SAY THAT THE TRAFFIC SIGN FOR ONEWAY WITH THE ARROW AND THE WORDS PROMPTED THEM TO ADD TEXT TO MANY ICONS ICONS FIRST ENTERED THE COMPUTER WORLD IN 1981 WHEN XEROX CORP UNVEILED A BATCH IN 1984 APPLE RELEASED THE ICONRICH MACINTOSH MICROSOFT COMPLETED THE ICON REVOLUTION WITH ITS WINDOWS OPERATING SYSTEM BRINGING THE SYMBOLS TO IBM PCS AND THEIR CLONES NOW SOME CUSTOMERS ARE CRYING CONFUSION AND OVERLOAD TOOL BARS THE LITTLE HORIZONTAL STRIPS WITH COMMAND CHOICES HAVE SO MANY ICONS THAT IT'S PRETTY HARD TO FIGURE OUT WHAT SOME OF THEM DO SAYS JP TERRY NETWORK MANAGER AT GERSTNER & MEYERS A NEW YORK MARKETING FIRM THE NEW VERSION OF WORD FOR MACINTOSH HAD SEVERAL ICONS THAT SEEMED KIND OF UNCLEAR AT FIRST I COULDN'T FIGURE THEM OUT WITHOUT LOOKING AT THE USER GUIDE PART OF THE CONFUSION OCCURS BECAUSE ONE ICON CAN MEAN DIFFERENT COMMANDS IN DIFFERENT PROGRAMS IN SOME OF ITS SOFTWARE APPLE USES A PICTURE OF A MAGNIFYING GLASS TO REPRESENT THE ENLARGE TYPE COMMAND BUT OTHER SOFTWARE INCLUDING SOME THAT APPLE MAKES EMPLOYS THE SHERLOCK HOLMES INTERPRETATION USING THE MAGNIFYING GLASS AS A SYMBOL FOR FIND LOCATE OR SEARCH THE SAME ICON MEANS DIFFERENT THINGS IN DIFFERENT PROGRAMS BECAUSE IT'S DIFFICULT TO GET A COPYRIGHT UNLESS THE DESIGN IS IMPRESSIVELY CLEVER OR STYLISTICALLY DISTINCTIVE COURTS SAY NO ONE HAS A PROPRIETARY RIGHT TO ICONS THAT ARE BASED ON EVERYDAY OBJECTS LOTUS SAYS IT LABORED OVER HOW TO REPRESENT BOLD AND ITALIC TYPEFACE FUNCTIONS THE ICONS ENDED UP BEING A BOLDFACE B AND AN ITALIC I WE COULDN'T PROTECT THEM BECAUSE THEY ARE EVERYDAY OBJECTS SAYS BILL JONES DIRECTOR OF PRODUCT MANAGEMENT AT LOTUS HOW COULD WE COPYRIGHT THE LETTER I MR JONES SAYS OTHER COMPANIES HAVE SINCE COPIED THE IDEA THE APPLE TRASHCAN ICON REPRESENTING THE DELETE FUNCTION IS COPYRIGHTED BUT ICON MAKERS NEED ONLY DESIGN A DIFFERENT KIND OF TRASH CAN TO EVADE ANY COPYRIGHT PROBLEMS SAYS LEE GESMER A LAWYER WHO SPECIALIZES IN TECHNOLOGY ISSUES ONE OF THE MOST PERPLEXING ICON PUZZLES IS HOW TO DEPICT THE UNDO COMMAND WHICH ORDERS A COMPUTER TO UNDO WHAT IT JUST DID WE USE AN ARROW THAT SHOWS A LINE STARTING FROM LEFT TO RIGHT AND THEN TURNING BACK SAYS MR JONES OF LOTUS IT'S CONCEPTUALLY OK BUT IT HASN'T REALLY WORKED SO WELL MR JONES SAYS THAT USERS SELECT THE UNDO FUNCTION THROUGH A TEXT MENU ABOUT 80 OF THE TIME RATHER THAN CLICK THE ICON WITH A MOUSE MICROSOFT HAS DEVELOPED MORE THAN 100 IMAGES ATTEMPTING TO SOLVE THE UNDO RIDDLE AT ONE POINT IT SETTLED ON AN ERASER TRYING TO ERASE SOMETHING IT JUST DIDN'T WORK SAYS MS HOWLETT SO WE GOT RID OF THAT ONE UNDO IS ALMOST IMPOSSIBLE TO DEPICT ANOTHER VEXING PROBLEM FOR ICON DESIGNERS HAS REVOLVED AROUND CULTURAL DIFFERENCES THE MOST OFFENSIVE ICON AT LEAST IN AN INTERNATIONAL SENSE HAS TURNED OUT TO BE THE HAND SEVERAL EARLY ICONS CONTAINED HANDS DOING ALL KINDS OF THINGS SUCH AS ERASING TEXT OR TELLING THE USER TO STOP OR WAIT BUT AS IT TURNS OUT HAND POSITIONS MEAN A GREAT MANY DIFFERENT THINGS AROUND THE WORLD APPLE DISCOVERED THAT THE PALMFORWARD OPENHANDED ICON MEANT TO DEPICT STOP CONVEYED SOMETHING ALTOGETHER DIFFERENT AND ALTOGETHER OBNOXIOUS IN GREECE IT SEEMS THAT A HAND GESTURE BENIGN IN THE US MEANS SOMETHING HORRIBLE ELSEWHERE SAYS MS HOWLETT SO WE TRY TO BE CAREFUL WITH OUR HAND IMAGES SOME ICONOGRAPHERS HOPE TO BOLSTER THE FLAGGING REPUTATION OF ICONS BY USING NEW TECHNOLOGIES AT A RECENT CONFERENCE ON COMPUTERHUMAN INTERFACE THEORY IN AMSTERDAM DESIGNERS DISPLAYED ANIMATION ICONS SOUND ICONS OFTEN CALLED EARCONS AND PHOTOREALISTIC THREEDIMENSIONALLIKE ICONS SOME EXPERTS MINIMIZE ICONS I THINK THE CONTRIBUTION OF ICONS IS SOMETIMES OVERBLOWN SAYS JOHN CARROLL MANAGER OF USER INTERFACE THEORY AND DESIGN AT INTERNATIONAL BUSINESS MACHINES CORP'S THOMAS J WATSON RESEARCH CENTER IN HAWTHORNE NY I JUST DON'T THINK ICONS ARE HIGH ON THE LIST OF ESSENTIAL PROPERTIES AND SEVERAL THEORETICIANS OPPOSE INTRODUCING ANY MORE ICONS ANIMATION MIGHT BECOME AN OBNOXIOUS DISTRACTION SAYS MR CARROLL OTHERS WORRY ABOUT THE CACOPHONIC POSSIBILITIES OF EARCONS COULD YOU IMAGINE EVERYONE IN AN OFFICE RECEIVING ALL KINDS OF DIFFERENT SOUND ICONS ASKS MR JONES IT WOULD BE TERRIBLY DISTRACTING EARCONS MAY NEVER BECOME AN ISSUE BECAUSE SOME RECENT DEVELOPMENTS INDICATE THE FUTURE OF COMPUTERHUMAN INTERFACE MAY ABANDON ICONS ALTOGETHER FOR INSTANCE SOME COMPANIES HAVE BEGUN INCORPORATING A NOTEBOOK FORMAT WITH TAB PAGES AND NAMES INSTEAD OF ABSTRACT ICONS WITH THE ICON MAKERS RUNNING SHORT OF GOOD MATERIAL NERDS COULD BE FORCED TO COMMAND WITH WORDS 9311170130 931117 BUSINESS BRIEF UNITED TECHNOLOGIES CORP UNIT SIGNS 180 MILLION PACT FOR JAPAN AIR JET ENGINES PRATT & WHITNEY A UNIT OF UNITED TECHNOLOGIES CORP HARTFORD CONN SAID IT SIGNED A CONTRACT TO SUPPLY 17 JET ENGINES FOR JAPAN AIR SYSTEM THE CONTRACT HAS A TOTAL VALUE OF ABOUT 180 MILLION PRATT & WHITNEY SAID THE ENGINES INCLUDING THREE SPARES WILL POWER THE JAPANESE AIRLINE'S FLEET OF SEVEN NEW BOEING 777 AIRCRAFT THE AIRCRAFT WILL BE DELIVERED STARTING IN SEPTEMBER 1996 9311170129 931117 POLITICS & POLICY VOTERS' TIDE TURNS TOWARD SUPPORT OF NAFTA AS DEBATER GORE HELPS THE PACT AND VICE VERSA BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH A DOORDIE CONGRESSIONAL VOTE AT HAND PUBLIC SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT CLEARLY IS RISING IN PART BECAUSE OF THE OUTCOME OF THE DEBATE BETWEEN VICE PRESIDENT AL GORE AND ROSS PEROT THE RISE IN PUBLIC FAVOR APPEARS TO BE LINKED TO A GROWING BELIEF THAT NAFTA WILL BE A NET JOBGAINER FOR THE COUNTRY AND WHILE SOME NAFTA OPPONENTS CLEARLY WANT TO PUNISH THOSE WHO SUPPORT IT A SUBSTANTIAL SHARE OF AMERICANS SUGGEST THEY WON'T BASE THEIR DECISIONS IN NEXT YEAR'S ELECTIONS ON HOW THEIR REPRESENTATIVE IN CONGRESS VOTES TODAY BY A 36TO31 MARGIN AMERICANS SAY THEY FAVOR THE NAFTA DEAL WITH MEXICO AND CANADA A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS JUST LAST MONTH THE PUBLIC OPPOSED NAFTA BY A SIMILAR MARGIN 33 TO 29 AND THOSE SURVEYED IN SEPTEMBER OPPOSED IT BY AN EVEN WIDER MARGIN CRUCIALLY 11 OF THOSE SURVEYED SAID THEY HAVE CHANGED THEIR MIND ON NAFTA IN THE PAST FEW WEEKS AND AMONG THOSE LATE SWITCHERS A HEFTY 71 SAY THEY NOW FAVOR PASSAGE THE MOMENTUM IN THIS DEBATE HAS BEEN DECIDEDLY ON THE PRONAFTA SIDE SAY DEMOCRATIC POLLSTER PETER HART AND REPUBLICAN ROBERT TEETER WHO CONDUCTED THE SURVEY THIS PRONAFTA MOMENTUM HAS BEEN MOST SIGNIFICANT AMONG CLINTON VOTERS AND DEMOCRATS THEY ADD THE PRESIDENT HAS RALLIED HIS OWN THERE STILL IS PUBLIC UNCERTAINTY THOUGH A SUBSTANTIAL 26 OF THOSE SURVEYED STILL SAY THEY HAVEN'T HEARD ENOUGH ABOUT NAFTA TO DECIDE THE POLL OF 803 ADULTS WAS CONDUCTED SUNDAY AND MONDAY ITS MARGIN OF ERROR IS 36 THE POLL SUGGESTS THAT PRESIDENT CLINTON'S SALES EFFORT FOR NAFTA IS PAYING SOME DIVIDENDS BUT MUCH OF THE RESPONSIBILITY FOR INCREASING NAFTA SUPPORT CLEARLY GOES TO MR GORE AND HIS PERFORMANCE IN LAST WEEK'S DEBATE WITH MR PEROT HALF OF THOSE SURVEYED SAY THEY SAW AT LEAST SOME OF THE DEBATE AND 43 OF THEM SAY THEY FAVOR NAFTA OF THOSE WHO SAY THEY WATCHED THE FULL 90MINUTE DEBATE WITH MR PEROT 50 SAY THEY FAVOR NAFTA AND MR GORE'S POSITIVE RATINGS HAVE SOARED IN THE NEW SURVEY 52 REPORT POSITIVE FEELINGS TOWARD THE VICE PRESIDENT THE HIGHEST LEVEL SINCE JANUARY AND 10 PERCENTAGE POINTS HIGHER THAN LAST MONTH THE WHITE HOUSE AND OTHER PRONAFTA FORCES APPEAR TO HAVE MADE THEIR MOST SIGNIFICANT INROADS ON THE JOBS ISSUE HALF OF THOSE SURVEYED SAY THEY THINK NAFTA WILL CREATE MORE JOBS THAN IT WILL LOSE IN THE US UP FROM 42 LAST MONTH AS GOES THE JOB ISSUE SO GOES THE NAFTA VOTE ASSERT MESSRS HART AND TEETER SOME 16 OF AMERICANS AGREE THAT SOME JOBS WILL BE LOST TO MEXICO BUT ALSO THINK THAT EVEN MORE JOBS WILL BE CREATED AMONG THAT GROUP SEEING A MIXED JOB OUTCOME THE TREATY IS APPROVED BY A 49TO22 MARGIN AND MANY OF THOSE SUPPORTERS HAVE MADE UP THEIR MINDS IN JUST THE PAST FEW WEEKS OF COURSE THE SURVEY STILL POINTS TO PLENTY OF POTENTIALLY SERIOUS PROBLEMS FOR NAFTA SUPPORTERS FOR ONE THING NAFTA OPPONENTS DEMONSTRATE FAR MORE INTENSITY THAN DO THE PACT'S SUPPORTERS AMONG THOSE WHO OPPOSE NAFTA 55 SAY THEY ARE STRONGLY OPPOSED BY CONTRAST AMONG THOSE WHO SUPPORT NAFTA JUST 44 SAY THEY ARE STRONGLY IN FAVOR AND THAT MEANS THAT NAFTA FOES SEEM MORE LIKELY TO REMEMBER NEXT NOVEMBER WHAT LAWMAKERS DO TODAY BY A 52TO4 MARGIN NAFTA FOES SAY THEY WOULD BE LESS LIKELY TO VOTE TO REELECT MEMBERS OF CONGRESS WHO SUPPORT NAFTA BUT OVERALL THERE IS EVIDENCE THAT MOST AMERICANS WON'T BE INCLINED TO MAKE THE NAFTA VOTE THE LITMUS TEST THAT WILL DETERMINE THEIR VOTE IN NEXT YEAR'S HOUSE ELECTIONS ASKED HOW MUCH DIFFERENCE IT WOULD MAKE IF THEIR REPRESENTATIVE VOTES IN FAVOR OF NAFTA 56 SAY NOT THAT MUCH DIFFERENCE ASKED HOW MUCH DIFFERENCE IT WOULD MAKE IF THEIR REPRESENTATIVE VOTES AGAINST NAFTA 60 SAY IT WOULDN'T MAKE MUCH DIFFERENCE THERE CONTINUE TO BE CLEAR CLASS DISTINCTIONS AMONG AMERICANS OVER NAFTA THE AGREEMENT IS FAVORED BY 52 OF COLLEGE GRADUATES AND 45 OF PROFESSIONALS AND MANAGERS IT IS OPPOSED BY 42 OF THOSE IN UNION HOUSEHOLDS AND 41 OF BLUECOLLAR WORKERS THERE ALSO ARE SIGNS THAT YOUNG PEOPLE ARE MORE NERVOUS ABOUT NAFTA BY A SLIGHT PERCENTAGE MORE OF THOSE AGED 18 TO 34 OPPOSE THE PACT THAN DO OLDER AMERICANS HALF OF THOSE SURVEYED ALSO FEAR SOME JOBS WOULD HEAD TO MEXICO UNDER NAFTA AND HALF DON'T THINK NAFTA WOULD DO MUCH TO SLOW ILLEGAL IMMIGRATION STILL DESPITE WIDESPREAD SKEPTICISM THE POLL SUGGESTS THAT PRESIDENT CLINTON'S STRATEGY OF HAVING FORMER PRESIDENTS AND SECRETARIES OF STATE MAKE HIGHPROFILE ENDORSEMENTS HAS HELPED HIS CAUSE MORE THAN HALF OF THOSE SURVEYED SAY THAT THE VIEWS OF THOSE PROPONENTS HAVE MADE THEM FEEL MORE POSITIVE TOWARD NAFTA AND PRESIDENT CLINTON HIMSELF SEEMS TO HAVE BENEFITED FROM SIMPLY FIGHTING THE NAFTA BATTLE AMONG THOSE SURVEYED THIS WEEK 54 REPORT POSITIVE FEELINGS ABOUT MR CLINTON UP FROM 46 LAST MONTH MR PEROT'S RATINGS MEANWHILE ARE PLUNGING THE SHARE OF THOSE WHO REPORT POSITIVE FEELINGS ABOUT THE TEXAS BILLIONAIRE HAS DROPPED TO 28 WHILE 47 REPORT NEGATIVE FEELINGS THOSE ARE HIS WORST READINGS SINCE LAST FALL'S ELECTION THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 803 ADULTS CONDUCTED SUNDAY AND MONDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 210 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL PHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH PHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 36 PERCENTAGE POINTS IN EITHER DIRECTION THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP 9311170128 931117 REVIEW & OUTLOOK EDITORIAL ASIDES MORE LAWSUITS NOW FAT VICTIMS THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION HAS FILED AN AMICUS BRIEF IN A JOB DISCRIMINATION CLAIM CASE IN FEDERAL COURT IN BOSTON SUPPORTING A 100000 AWARD TO A 5FOOT3 329POUND RHODE ISLAND WOMAN DISCRIMINATION IS INDEED PUNISHABLE UNDER CURRENT STATUTES BUT WE'RE LEFT TO WONDER WHETHER THE EEOC BELIEVES THAT SO LONG AS THE COMMISSION EXISTS ITS JOB IS TO PUSH FURTHER INTO THE FRONTIERS OF VICTIMOLOGY 9311170127 931117 GITANO WILL STOP MAKING APPAREL NET LOSS NARROWS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GITANO GROUP INC SAID THAT ITS LOSSES NARROWED IN THE THIRD QUARTER AND ANNOUNCED THAT IT WILL CEASE MANUFACTURING APPAREL INSTEAD IT WILL SELL ITS GITANOLABEL DESIGNS TO RETAILERS WHO WILL TAKE OVER THE JOB OF MANUFACTURING FOR THE STRATEGY TO SUCCEED GITANO SAID THAT IT WILL HAVE TO RESTRUCTURE ITS DEBT THE COMPANY SAID THAT IT MUST REPAY ITS LENDERS ABOUT 135 MILLION PLUS INTEREST THROUGH FEBRUARY 1995 TO AVOID DEFAULTING UNDER ITS CURRENT CREDIT AGREEMENTS GITANO SAID THAT DEBT WILL EXCEED ITS PROJECTED CASH FLOW FOR THAT PERIOD REFLECTING THE CLOSING OR SALE OF SEVERAL OF ITS DIVISIONS GITANO'S THIRDQUARTER SALES DROPPED NEARLY 68 TO 761 MILLION DOWN FROM 2361 MILLION A YEAR EARLIER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GITANO SHARES CLOSED AT 275 UP 125 CENTS IN THE FIRST NINE MONTHS OF 1993 GITANO'S LOSS NARROWED TO 287 MILLION OR 305 CENTS A SHARE FROM A LOSS OF 979 MILLION OR 612 A SHARE A YEAR AGO GITANO SAID THAT IT EXPECTS ITS LOSS FOR THE YEAR 1993 TO RANGE FROM 55 MILLION TO 60 MILLION COMPARED WITH A 1992 LOSS OF 2379 MILLION WHILE GITANO CONTINUES TO BE A POPULAR BRAND CARRIED BY MASS MERCHANDISERS LIKE WALMART STORES INC GITANO'S NEW CORPORATE DIRECTION IS LIKELY TO CHANGE ITS RELATIONSHIPS WITH RETAILERS IT DOES BUSINESS WITH AS WELL AS DRAMATICALLY CUT THE SIZE OF THE COMPANY STARTING IN THE FIRST QUARTER OF 1994 GITANO SAID IT PLANS TO ESTABLISH STRATEGIC PARTNERSHIPS WITH RETAILERS SIMILAR TO THE WAY STORES MANUFACTURE PRIVATELABEL GOODS RETAILERS WILL PAY A PERCENTAGE OF THE WHOLESALE COST OF GITANOLABEL GOODS THAT GITANO WILL DESIGN MERCHANDISE AND MARKET THE PERCENTAGE BETWEEN 13 AND 20 IS HIGHER THAN THAT PAID UNDER A LICENSING CONTRACT THE RETAILERS AND NOT GITANO WILL ASSUME THE COSTS AND RESPONSIBILITY OF MANUFACTURING GITANO PRODUCTS THAT THEY ORDER AS A RESULT GITANO'S FUTURE BUSINESS IS LIKELY TO BE CONCENTRATED WITH LARGER MASSMARKETERS THAT HAVE MANUFACTURING CAPABILITIES SAID ROBERT GREGORY GITANO CHAIRMAN AND CHIEF EXECUTIVE MR GREGORY SAID THAT GITANO HAS ALREADY BOOKED A CONSIDERABLE AMOUNT OF GOODS UNDER ITS NEW ARRANGEMENT FOR DELIVERY IN 1994 BUT HE DECLINED TO IDENTIFY THE STORES 9311170126 931117 ENTERTAINMENT ANOTHER HERO OF YESTERYEAR TRIES A COMEBACK IN 1990S BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL BERKELEY CALIF IN THE PANTHEON OF HEROES ZORRO WOULD SEEM ABOUT AS LIKELY A CANDIDATE FOR RESURRECTION AS HOPALONG CASSIDY MENTION THE DUELING DON'S NAME AND MOST AMERICANS REMEMBER THE SAPPY 1950S DISNEY TV SITCOM/ADVENTURE OR GEORGE HAMILTON CAMPING IT UP IN THE MOVIE ZORRO THE GAY BLADE ZORRO'S SWORD CERTAINLY SEEMS NO MATCH FOR THE LIGHTSABERS THAT TODAY'S AUDIENCES HAVE COME TO EXPECT YET STEVEN SPIELBERG IS DEVELOPING A NEW ZORRO FILM TOPPS CO BROOKLYN NY HAS JUST INTRODUCED AN UPDATED ZORRO COMICBOOK LINE WITH THE CAPED CRUSADER TRAVELING TO 19TH CENTURY EUROPE AND BATTLING DRACULA IN NOTRE DAME A SATURDAY MORNING CARTOON IS IN THE WORKS THAT WILL PIT NINJAS AND MANCHURIAN SORCERERS AGAINST ZORRO AND HIS TRUSTY SIDEKICK BERNARDO THE MUTE HERE TRANSFORMED INTO AN OBI WAN KENOBILIKE MENTOR WALT DISNEY CO HAS COLORIZED ITS 78 ZORRO EPISODES FOR THE DISNEY CHANNEL AND MOVE OVER MISS SAIGON ZORRO MAY SOON BE GALLOPING DOWN BROADWAY BEHIND THE COMEBACK IS JOHN GERTZ THE 43YEAROLD HEIR TO THE ZORRO NAME AND LIKENESS WHO IS MASTERFULLY EXPLOITING HOLLYWOOD'S FRENZIED HUNT FOR THE NEXT HOT CHARACTER FRANCHISE THROUGH HIS FAMILYOWNED LICENSING COMPANY ZORRO PRODUCTIONS INC HE IS REINVENTING ZORRO AS A COMPLEX ADULT SUPERHERO ALONG THE LINES OF ACTOR MICHAEL KEATON'S BATMAN MR GERTZ AND HIS TWIN SISTER NANCY LARSON INHERITED THE ZORRO RIGHTS FROM THEIR FATHER MITCHELL A HOLLYWOOD TALENT AGENT WHO BOUGHT THEM IN THE 1940S FROM ZORRO CREATOR JOHNSTON MCCULLEY MR MCCULLEY FIRST INTRODUCED THE CHARACTER IN A 1919 NOVELLA AND WENT ON TO PUBLISH SOME 60 STORIES FEATURING DON DIEGO DE LA VEGA THE WEALTHY LANDOWNER WHOSE SWORDWIELDING ALTER EGO FIGHTS TYRANNY IN SPANISHCONTROLLED SOUTHERN CALIFORNIA IN THE EARLY 1800S ALMOST EVERY AMERICAN GREW UP KNOWING ZORRO WHETHER AS PORTRAYED IN SILENT FILMS BY DOUGLAS FAIRBANKS IN THE REPUBLIC PICTURES SERIALS OF THE 1930S AND '40S OR IN AN UPDATED 1980S SERIES THAT HAS RUN ON THE FAMILY CHANNEL CABLE NETWORK AS WELL AS OVERSEAS AND ZORRO REMAINS A PERENNIAL HIT WITH OVERSEAS AUDIENCES WHERE ENTERTAINMENT COMPANIES NOW GET MORE THAN A THIRD OF THEIR REVENUE ONE THING THAT DEFINITELY GOES IN ZORRO'S FAVOR IS THAT THE MAJOR TREND IN LICENSING NOW IS NOSTALGIA TAKING A CLASSIC PROPERTY THAT'S BEEN AROUND BUT NOT USED TO ITS POTENTIAL AND REJUVENATING IT SAYS KAREN RAUGUST EDITOR OF THE LICENSING LETTER WHO POINTS TO HOLLYWOOD'S SUCCESSFUL REVIVALS OF THE BEVERLY HILLBILLIES AND THE ADDAMS FAMILY BUT IN THE FICKLE WORLD OF CHARACTER LICENSING THE NEW AND IMPROVED ZORRO COULD EITHER FLY LIKE WARNER BROS' BATMAN OR FIZZLE LIKE DISNEY'S DICK TRACY LIKE ANYTHING ELSE YOU CAN FLOP SAYS MR GERTZ REMEMBER LAST ACTION HERO' YET MR GERTZ AND THE SCORES OF COMPANIES WITH ZORRO LICENSING AGREEMENTS ARE BETTING THAT ZORRO'S PANACHE WILL STRIKE A CHORD WITH TODAY'S VIEWERS HE'S THE CLASSIC AVENGING HERO FIGHTING GOOD OVER EVIL AND HE CROSSES THE GENERATIONS SAYS IRA FRIEDMAN VICE PRESIDENT AND PUBLISHER OF TOPPS COMICS WHICH HAS MADE ZORRO THE HEADLINER OF ITS NEW COMIC BOOK LINE TOPPS IS GIVING ZORRO A '90S EDGE PITTING HIM AGAINST HARDBOILED ANTAGONISTS INCLUDING ONE NAMED LADY RAWHIDE NO LONGER WILL ZORRO BE DUELING THIRDRATE BANDIDOS ON EL CAMINO REAL SAYS MR GERTZ LIKEWISE IN THE SATURDAY MORNING CARTOON SET TO BE INTRODUCED IN FALL 1995 ZORRO WILL TINKER IN A DA VINCISTYLED UNDERGROUND LABORATORY AND WILL HAVE THE POWER TO TURN INTO A FOX THE LONG HIATUS IN ZORRO'S CAREER BEGAN IN 1967 WHEN DISNEY WHICH HAD BOUGHT THE RIGHTS TO THE CHARACTER IN 1952 DECIDED TO STOP PAYING 3500 A YEAR TO KEEP THEM AND THEY REVERTED TO THE GERTZ FAMILY IT WASN'T UNTIL 1980 WHEN MR GERTZ WAS A STRUGGLING STUDENT WORKING ON HIS DOCTORAL DEGREE IN CHRONOBIOLOGY IN SAN FRANCISCO THAT HE AND HIS SISTER DECIDED TO EXPLOIT THE RIGHTS THEIR FIRST EFFORT WAS THE LUKEWARM SENDUP WITH GEORGE HAMILTON FOLLOWED BY A DISNEYPRODUCED SITCOM ZORRO & SON WHICH LASTED FIVE EPISODES WE DECIDED AT THAT POINT NEVER TO DO ANOTHER SPOOF MR GERTZ SAYS HE THEN FOCUSED ON LICENSING OVERSEAS WHERE ZORRO'S OLD WORLD ROMANTICISM AND OLD WEST THEMES STILL HAD APPEAL IN FRANCE A DUBBED VERSION OF THE ORIGINAL DISNEY TV SERIES SHOT TO THE TOP OF THE RATINGS IN 1985 FOUR YEARS LATER NEW WORLD ENTERTAINMENT STARTED FILMING A NEW TV SERIES IN SPAIN MAINLY FOR FOREIGN SYNDICATION TODAY MR GERTZ CAN POINT TO A COLLECTION OF ZORRO SCANDINAVIAN CONFECTIONS GERMAN BOARD GAMES AND FRENCH COSTUMES THAT LINE THE CABINETS OF HIS OFFICE THOUGH HE DECLINES TO DISCLOSE HIS COMPANY'S REVENUE AND PROFIT HE SAYS HE RECEIVES ABOUT 8 OF ALL WHOLESALE SALES OF ZORRO PRODUCTS WITH ZORRO A HIT OVERSEAS MR GERTZ AND HIS SISTER BEGAN KNOCKING ON HOLLYWOOD DOORS WITH A NEW MOVIE SCRIPT THAT SHE HAD WRITTEN SONY CORP'S TRISTAR CLINCHED THE DEAL BY INVOLVING MR SPIELBERG WHO HAPPENED TO BE A FAN OF THE OLD ZORRO CLIFFHANGERS HIS AMBLIN ENTERTAINMENT WHICH IS REDOING THE SCRIPT ISN'T DIVULGING ANY DETAILS ABOUT THE FILM EXCEPT TO SAY THAT IT'S IN DEVELOPMENT AND THAT CINEMATOGRAPHERTURNEDDIRECTOR MIKAEL SALOMON WILL DIRECT THOUGH THE MOVIE HASN'T YET BEEN CAST ANDY GARCIA IS SAID TO BE THE TOP CONTENDER FOR THE LEAD THE MOVIE'S RELEASE WILL BE ACCOMPANIED BY A CASCADE OF ZORRO PRODUCTS AND TIEINS ALREADY MR GERTZ HAS DEALS WITH MORE THAN 40 COMPANIES IN THE US FOR EVERYTHING FROM HALLMARK PARTY GOODS TO SEGA AND NINTENDO VIDEO GAMES WHEN ALL IS SAID AND DONE WE COULD HAVE OVER 100 LICENSEES SAYS STANFORD BLUM OF IMAGINATION FACTORY THE BURBANK CALIF DOMESTIC LICENSING AGENT FOR ZORRO PRODUCTS YOU DON'T WANT TO OVERSATURATE THE MARKET HE ADDS OF COURSE THE BESTLAID MARKETING PLANS WON'T HELP IF AUDIENCES DON'T BUY THE NEW ZORRO IF WE FLOP BIG TIME IT WILL TAKE YEARS FOR THE STENCH OF THE CORPSE TO LEAVE THE AIR SAYS MR GERTZ BUT BY THE TIME THE JURY IS IN MR GERTZ WILL HAVE ALREADY AMASSED A SMALL FORTUNE IN LICENSING FEES AND OPTIONS AT THIS POINT WE'LL EITHER GET A LOT OF REVENUE OR A SUPER AMOUNT HE SAYS OUR ONLY RISK IS SUCCESS OR GREATER SUCCESS 9311170125 931117 MARKETING & MEDIA TIME WARNER PLANS NEWSONDEMAND' FOR A CABLE SYSTEM NEW YORK TIME WARNER INC SAID IT WILL CREATE AN INTERACTIVE NEWSONDEMAND SERVICE FOR ITS PROTOTYPE CABLE SYSTEM IN ORLANDO FLA USING THE RESOURCES OF ITS PUBLISHING UNIT AND NEW YORK 1 NEWS CABLE CHANNEL THE COMPANY SAID WALTER ISAACSON 41YEAROLD ASSISTANT MANAGING EDITOR OF TIME MAGAZINE WILL BE LEAVING THAT POSITION TO BECOME PRESIDENT OF THE NEW SERVICE AND EDITOR OF TIME INC'S NEW MEDIA UNIT THE SERVICE TO BE LAUNCHED IN LATE 1994 WILL ALLOW SUBSCRIBERS TO CALL UP VIDEO FOOTAGE OF NEWS WHENEVER THEY WANT INSTEAD OF WAITING FOR SCHEDULED NEWS BROADCASTS AS WELL AS CONTROL THE LENGTH AND ORDER OF THE STORIES VIEWERS COULD CHOOSE FROM CATEGORIES SUCH AS SPORTS WEATHER OR BUSINESS PAUL SAGAN 34 YEARS OLD CURRENTLY A VICE PRESIDENT OF NEWS AND PROGRAMMING AT NEW YORK 1 NEWS WILL BECOME SENIOR VICE PRESIDENT OF TIME WARNER CABLE PROGRAMMING AND MANAGING EDITOR OF THE NEWSONDEMAND SERVICE HE WILL RETAIN A SUPERVISORY ROLE AT THE LOCAL NEWS NETWORK THERE'S AN ENORMOUS DEMAND FOR INFORMATION AND NEWS OUT THERE MR ISAACSON SAID THIS SERVICE WILL ALLOW CONSUMERS TO DIG MORE DEEPLY INTO THE STORIES THEY ARE INTERESTED IN TIME WARNER PLANS TO FLIP THE SWITCH ON ITS FULLSERVICE NETWORK IN APRIL OF 1994 WITH PLANS TO OFFER A VARIETY OF ONDEMAND PRODUCTS INCLUDING MOVIES VIDEO GAMES AND CATALOG SHOPPING 9311170124 931117 WHO'S NEWS HONDO OIL & GAS CO HONDO OIL & GAS CO ROSWELL NM JOHN J HOEY FORMER PRESIDENT OF ATLANTIC REFINING & MARKETING CO WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS ENERGY CONCERN EFFECTIVE NOV 30 MR HOEY 54 YEARS OLD WILL ASSUME THE POSTS FROM ROBERT O ANDERSON 76 WHO REMAINS CHAIRMAN 9311170123 931117 WHO'S NEWS VARITY CORP VARITY CORP BUFFALO NY DOMINIQUE CHAUVIN 53 YEARS OLD WAS NAMED GROUP CHIEF EXECUTIVE OF MASSEY FERGUSON GROUP A WARWICKSHIRE ENGLAND UNIT OF THIS MAKER OF INDUSTRIAL MACHINERY AND DIESEL ENGINES HE SUCCEEDS JEANPAUL RICHARD 50 WHO RESIGNED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INSITUFORM TECHNOLOGIES INC MR CHAUVIN PREVIOUSLY WAS GENERAL MANAGER OF MASSEY FERGUSON TRACTEURS CIE AND PRESIDENT DIRECTEUR GENERAL OF MASSEY FERGUSON SA BOTH FRANCEBASED UNITS OF MASSEY FERGUSON HE WILL RETAIN RESPONSIBILITIES FOR THESE POSTS 9311170122 931117 DRAWING BACK NAFTA'S ODDS IMPROVE BUT US MAY REDUCE ITS TRADE LEADERSHIP CLINTON WINS CONVERTS TO PACT EVEN AS DEBATE CHANGES CLIMATE FOR FUTURE DEALS THE HOUSE VOTES TONIGHT BY BOB DAVIS AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AFTER A GRUELING TWOMONTH BATTLE THE CLINTON ADMINISTRATION YESTERDAY SEEMED POISED TO WIN A CLIFFHANGER TRIUMPH ON THE NORTH AMERICAN FREE TRADE AGREEMENT BUT NO MATTER WHAT HAPPENS TONIGHT IN THE HOUSE OF REPRESENTATIVES THE MOMENTUM OF TRADE LIBERALIZATION DOMINANT IN THE US AND IN MOST INDUSTRIAL NATIONS SINCE THE END OF WORLD WAR II HAS BEEN SLOWED SHARPLY AND MAY BE HEADED FOR REVERSAL THE BITTERNESS OF THE NAFTA FIGHT THE POWER OF THE OPPONENTS AND THE DIVISIONS WITHIN THE DEMOCRATIC PARTY AND CONGRESS ALL PRESAGE A SHIFT AWAY FROM A GLOBAL TRADING SYSTEM IN WHICH NATIONS LED BY THE US HAVE COLLECTIVELY LOWERED TRADE BARRIERS FOR 60 YEARS THE SYSTEM NOW EMERGING COMBINES TRADERELATED PRESSURES FROM DOMESTIC ECONOMIC INTERESTS WITH ONEONONE DEALS IN WHICH THE US MUSCLES OTHER COUNTRIES INTO SPECIFIC CONCESSIONS EVEN AS THE WHITE HOUSE WAS TALLYING THE VOTES NECESSARY TO ENSURE APPROVAL THE NAFTA BATTLE CLEARLY LEAVES A POWERFUL LEGACY IT GAVE RESPECTABILITY TO THE NOTION THAT SOMETHING IS FUNDAMENTALLY UNFAIR ABOUT TRADING WITH POOR NATIONS WHOSE LABOR COSTS UNDERCUT THOSE IN THE US AND ALONGSIDE THIS VIEW IS A GROWING PERCEPTION OF THE US ECONOMY THE WORLD'S MIGHTIEST AS AN INNOCENT ABROAD IN DANGER FROM FOREIGN PREDATORS MOREOVER THE BRAWL OVER NAFTA HAS SPAWNED A PERMANENT TRADE OPPOSITION THAT BLAMES GLOBAL TRADE FOR AN ARRAY OF ECONOMIC AND SOCIAL UNCERTAINTIES WORLDTRADE NEGOTIATIONS A FAR BIGGER PRIZE ECONOMICALLY THAN NAFTA ARE CURRENTLY STALLED PARTLY BECAUSE OF THE WHEELING AND DEALING OVER NAFTA IN CONGRESS AND EVEN AFTER SECURING A NAFTA VICTORY THE ADMINISTRATION WON'T BE IN A HURRY TO TRY TO FOLD IN OTHER LATIN AMERICAN STATES OF COURSE TRADE FLOWS CONTINUE TO GROW EVEN AS THE POLITICAL SUPPORT FOR TRADELIBERALIZATION WEAKENS MOREOVER FUNDAMENTAL ECONOMIC FORCES SUCH AS TECHNOLOGICAL CHANGE EASE OF TRANSPORTATION AND IMPROVED COMMUNICATIONS ARE FACILITATING TRADE EXPANSION AROUND THE WORLD BUT ANTITRADE SENTIMENTS IF THEY CONTINUE TO FESTER COULD ERUPT IN STEPS THAT EVENTUALLY MIGHT BEGIN TO LIMIT GLOBAL COMMERCE BY ANY ASSESSMENT THE PUSH TO PASS NAFTA HAS BEEN EXHAUSTING HOUSE REPUBLICANS YESTERDAY MET THEIR GOAL OF REACHING 118 FIRM YES VOTES AND DEMOCRATIC VOTECOUNTERS EXPRESSED CONFIDENCE THEY WOULD PRODUCE THE REMAINING 100 VOTES NEEDED TO PASS NAFTA AS IS COMMON ON CONTROVERSIAL ISSUES DEMOCRATS HAVE IN RESERVE SEVERAL LAWMAKERS WHO HAVE AGREED TO VOTE YES ONLY IF THE PACT OTHERWISE WOULD FAIL DEALMAKING WITH KEY LAWMAKERS WAS CRITICAL A SIGNIFICANT BREAK CAME YESTERDAY WHEN REP TOM LEWIS A FLORIDA REPUBLICAN WHO HAS BEEN CONSIDERED A BELLWETHER FOR THAT LARGE DELEGATION SWITCHED FROM OPPOSITION TO SUPPORT AFTER MR CLINTON PERSONALLY AGREED TO A CONCESSION BENEFITING TOMATO GROWERS IN PAST WEEKS THE ADMINISTRATION HAS AGREED TO A SERIES OF DEALS AIMED AT SATISFYING FLORIDA'S SUGAR CITRUS AND VEGETABLE GROWERS BUT MR LEWIS A MEMBER OF THE AGRICULTURE COMMITTEE REMAINED OPPOSED YESTERDAY HE GOT A PHONE CALL AND A LETTER FROM THE PRESIDENT AND BY MORNING'S END TOLD REPORTERS WE'VE GOTTEN ALMOST EVERYTHING WE'VE ASKED FOR I FEEL LIKE THERE COMES A POINT IN TIME WHERE YOU SHOULD DECLARE VICTORY AS MANY AS 15 OF THE 23 FLORIDA LAWMAKERS NOW ARE EXPECTED TO SUPPORT NAFTA REP PETER DEUTSCH A FRESHMAN DEMOCRAT WAS AMONG THOSE WHO REMAIN OPPOSED TO THE PACT I REALLY DON'T THINK IT'S GOOD FOR AMERICA HE SAID PREVIOUSLY HE HAD ACKNOWLEDGED THE PRESSURE OF ORGANIZED LABOR AGAINST NAFTA IT'S A TOUGHER VOTE FOR FRESHMEN HE SAID FOR MORE SENIOR MEMBERS THEY MAY HAVE A 10YEAR RECORD WITH LABOR SO THE POLITICAL PRESSURE IS DIFFERENT FOR FRESHMEN REP TOM SAWYER BECAME THE SECOND OF OHIO'S 10 DEMOCRATS TO SUPPORT NAFTA HE MADE THE ANNOUNCEMENT AT AN AKRON NEWS CONFERENCE THAT INCLUDED A CONGRATULATORY PHONE CALL FROM MR CLINTON REP SAWYER HAD PLANNED A PRESS CONFERENCE FOR MONDAY BUT THE WHITE HOUSE FEARFUL THAT HE WOULD OPPOSE NAFTA SECURED A DELAY ALSO ENDORSING NAFTA ARE OTHER UNCOMMITTED LEGISLATORS FROM TEXAS VICE PRESIDENT ALBERT GORE'S TENNESSEE AND MASSACHUSETTS TWO OKLAHOMA DEMOCRATS REPS BILL BREWSTER AND GLENN ENGLISH ALONG WITH REP BILL SARPALIUS OF TEXAS CAME OUT IN SUPPORT YESTERDAY AFTER TRADE ASSOCIATIONS FOR WHEAT AND PEANUT GROWERS ASSURED THE LAWMAKERS THEY WERE SATISFIED BY THE AGREEMENTS ON THOSE PRODUCTS REP CURT WELDON WAS THE ONLY HOUSE MEMBER TO PUBLICLY ANNOUNCE OPPOSITION TO NAFTA EXPRESSING CONCERN ABOUT ITS COST AND THE IMPACT ON JOBS AND IMMIGRATION I GUESS I WAS THE ONLY ONE WHO DIDN'T CUT A DEAL THE PENNSYLVANIA REPUBLICAN SAID IN AN INTERVIEW EVEN SO HE PREDICTED THE PRESIDENT WOULD WIN GIVEN THE DEALS THAT HAVE BEEN ARRANGED I WON'T SELL MY VOTE TO GET SOME GOODIE HE ADDED BUT HAVING ALL BUT SECURED A NAFTA VICTORY THE ADMINISTRATION FACES DIFFICULTIES IN PUSHING OTHER FARREACHING TRADE DEALS PARTICULARLY THE GLOBALTRADE ACCORD BEING NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE FOLLOWING THAT A NEW TRADE PACT SUCH AS THE ONE THAT MIGHT SOMEDAY BE HAMMERED OUT WITH THE ASIAPACIFIC ECONOMIC COOPERATION GROUP WHICH IS HOLDING A TOPLEVEL MEETING IN SEATTLE THIS WEEK WOULD FACE AN UPHILL FIGHT THE IDEA OF A PRESIDENT BRINGING BACK TRADE AGREEMENTS AND HAVING CONGRESS VOTE UPORDOWN ON THEM MAY BE A THING OF THE PAST SAYS PAUL DRAZEK A FORMER TRADE NEGOTIATOR WHO NOW WORKS AT THE AMERICAN FARM BUREAU FEDERATION MICHAEL PORTER A HARVARD PROFESSOR WHOSE MONUMENTAL WORK THE COMPETITIVE ADVANTAGE OF NATIONS CHRONICLES THE RISE AND FALL OF NATIONAL ECONOMIES WORRIES ABOUT THE SHIFT INWARD CLINGING TO WHAT WE HAVE RATHER THAN MOVING ON TO NEW SOURCES OF WEALTH IS A PROCESS THAT DESTROYS ECONOMIES HE CONTENDS HE ADDS THAT US ATTITUDES ARE REMINISCENT OF BRITAIN'S MOOD BEFORE ITS ECONOMIC DECLINE IN THE WAKE OF WORLD WAR II CERTAINLY AMERICA'S PLUNGE TOWARD ISOLATIONISM WOULD BE FAR STEEPER IF NAFTA WERE TO BE DEFEATED WRECKING PLANS TO PHASE OUT TRADE RESTRICTIONS AMONG THE US MEXICO AND CANADA OVER 15 YEARS BUT WHAT IS STRIKING IS HOW MUCH TRADE POLICY HAS ALREADY SHIFTED IN THE US WEAKENING THE PRESIDENT'S POWER TO DELIVER A TRADEOPENING POLICY EVEN WHEN HIS OWN PARTY CONTROLS CONGRESS THE NAFTA DEBATE SHOWS FREE TRADE IS A SUSPECT CONCEPT ADDS ALEJANDRO FOXLEY RIOSECO CHILE'S FINANCE MINISTER WHO WAS EDUCATED AND TAUGHT IN THE US DOMESTIC POLITICAL FORCES ARE SO STRONG THAT NEGOTIATING FREETRADE AGREEMENTS MAY MIRROR THEIR POLITICAL INTERESTS THE ANTIPATHY OF MANY AMERICANS TOWARD TRADE PARALLELS A RISE IN PROTECTIONIST SENTIMENTS IN FRANCE AND MUCH OF THE REST OF EUROPE WHERE GOVERNMENTS ARE CONSIDERING WHETHER TO CONTINUE LIBERALIZATION OR ERECT MORE BARRIERS IN THE US THE MUSCLEFLEXING BY THE BROAD ANTITRADE COALITION MARKS THE FIRST TIME SINCE FRANKLIN ROOSEVELT STARTED REDUCING TARIFFS IN 1934 THAT A TRADELIBERALIZATION MEASURE HAS BEEN SO IMPERILED THE COALITION TIES TOGETHER LABOR UNIONS UPSCALE ENVIRONMENTALISTS SUBURBAN PEROT SUPPORTERS AND THOUSANDS OF LOCAL ACTIVISTS NATIONWIDE ALL CONVINCED THAT TRADE IS A SUCKER'S GAME PLAYED FOR THE BENEFIT OF MULTINATIONAL CORPORATIONS THEIR RHETORIC IS PURE DOWNWITHTHERICH POPULISM A MOVEMENT WITH POLITICAL ROOTS REACHING BACK TO THE 1830S PRESIDENCY OF ANDREW JACKSON BUT LACED WITH A 1990S CONCERN FOR THE ENVIRONMENT THE GOAL SHOULD BE TO PROTECT THE FUTURE THROUGH RESTRICTIONS ON INTERNATIONAL TRADE WRITE TWO BRITISH ENVIRONMENTALISTS WHO LINK TRADE LIBERALIZATION WITH ENVIRONMENTAL DEGRADATION IN AN ANTITRADE MANIFESTO CALLED THE NEW PROTECTIONISM THEY ADD MORE LONGDISTANCE TRADE WILL ONLY INTENSIFY THE DAMAGING TRENDS WHICH ARE ALREADY BRINGING THE WORLD TO ITS CURRENT SORRY STATE DESPITE A POOR SHOWING IN THE RECENT NAFTA DEBATE ROSS PEROT HAS USED PUBLIC ANXIETIES OVER GLOBAL TRADE TO BUILD UP HIS POLITICAL ORGANIZATION AND HE ISN'T LIKELY TO STOP AFTER THE NAFTA VOTE INDEED PASSAGE OF NAFTA TONIGHT COULD INTENSIFY THE PEROTISTAS' CONVICTION THAT THE WASHINGTON POWER STRUCTURE IS STACKED AGAINST THEM WITH THE PRESIDENT WINNING ON NAFTA BY CUTTING DEALS WITH LAWMAKERS THE TRADE ISSUE GIVES STAYING POWER TO HIS ORGANIZATION SAYS DON WEINER AN ANTITRADE ORGANIZER IN THE MIDWEST THEY'RE BUILDING A PERMANENT POLITICAL ISSUE JUST LIKE THE CHRISTIAN RIGHT USED SCHOOL BOARDS ANTIGAY MEASURES AND SCHOOL CHOICE THE WHITE HOUSE'S CHIEF ECONOMIST LAURA TYSON CONSOLES HERSELF WITH THE NOTION THAT THE ANTITRADE MOVEMENT WILL PETER OUT ONCE THE ECONOMY IMPROVES BUT CORPORATE RESTRUCTURING AND TECHNOLOGY SHOCKS WILL CONTINUE TO CUT INTO JOBS IN PARTICULAR SECTORS AND GLOBAL TRADE WILL FREQUENTLY GET THE BLAME IN CANADA THE FREETRADE AGREEMENT WITH THE US IN 1988 WAS FAULTED FOR JOB LOSSES AND A RECESSION EVEN BEFORE THE TRADE DEAL FULLY TOOK EFFECT THE POLITICAL PARTY THAT SIGNED THE ACCORD LOST POWER IN RECENT ELECTIONS TRADE OPPONENTS FIRST ORGANIZED TO DEFEAT WORLDTRADE TALKS HELD UNDER GATT AUSPICES IN GENEVA AND SHIFTED TO NAFTA ONLY AS A POLITICAL TACTIC BECAUSE THE ADMINISTRATION WAS MAKING MORE HEADWAY ON IT ONCE THE NAFTA UPROAR SUBSIDES THEIR FOCUS WILL TURN AGAIN TO GENEVA GATT IS ROUND TWO SAYS RALPH NADER THE CONSUMER ACTIVIST AND AN ANTINAFTA LEADER THE CONSPIRATORIAL ANTIELITIST ARGUMENTS MADE BY NAFTA FOES MAY RESONATE EVEN MORE LOUDLY WITH GATT AN OBSCURE BUT POWERFUL TRADE ORGANIZATION TUCKED AWAY IN SWITZERLAND AND RUN BY BUREAUCRATS UNKNOWN IN THE US GATT ARBITRATION PANELS MEET IN SECRET DON'T MAKE THEIR FINDINGS PUBLIC AND DEEM US ENVIRONMENTAL LAWS IMPROPER IF THEY BLOCK TRADE AND THE GATT DEAL NOW BEING NEGOTIATED WITH A DEC 15 DEADLINE PROPOSES TO INCREASE THE GATT BUREAUCRACY'S POWER AND DECREASE US AUTHORITY TO USE TRADE SANCTIONS TO PROTECT THE ENVIRONMENT OR THE DOMESTIC ECONOMY EVEN APART FROM THE ANTITRADE FOES GETTING A GATT DEAL IS MUCH TOUGHER THAN ANY OF US WOULD HAVE THOUGHT SIX MONTHS AGO SAYS ROBERT RUBIN DIRECTOR OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL THAT'S BECAUSE UNLIKE NAFTA WHICH CORPORATE AMERICA SUPPORTS ALMOST UNANIMOUSLY A GATT DEAL DEEPLY DIVIDES US INDUSTRY LAUNCHED SEVEN YEARS AGO UNDER PRESIDENT REAGAN THE GATT TALKS PROPOSED A NEW WORLD ORDER IN TRADE DEVELOPING NATIONS WOULD PROMISE TO OPEN THEIR MARKETS TO RICH NATIONS' FINANCIALSERVICES AND HIGHTECH COMPANIES IN EXCHANGE RICH NATIONS WOULD OPEN THEIR MARKETS TO AGRICULTURAL AND TEXTILE IMPORTS FROM DEVELOPING COUNTRIES BUT BOTH RICH AND POOR COUNTRIES IN THE 110NATION GATT HAVE BALKED AT MAKING CONCESSIONS NOW SUCH MAJOR US INDUSTRIES AS HOLLYWOOD SEMICONDUCTORS PHARMACEUTICALS AND BANKS WORRY THAT ASIAN AND EUROPEAN NATIONS WILL OFFER ONLY COSMETIC CHANGES IN GENERALLY CLOSED MARKETS AND THAT THE ADMINISTRATION WILL ACCEPT THEM ANYWAY IN ORDER TO CLAIM AN ECONOMIC AND FOREIGNPOLICY VICTORY DEVELOPING NATIONS ON THE OTHER HAND SEE THE US PROTECTING ITS TEXTILE AND APPAREL COMPANIES AND THE EUROPEAN COMMUNITY REFUSING TO OPEN ITS AGRICULTURE MARKETS VERY MUCH ADMINISTRATION DEALMAKING TO WIN SUPPORT FOR NAFTA HAS COMPLICATED THE GATT ROUND EVEN FURTHER TO WOO REP JAMES BACCHUS A FLORIDA DEMOCRAT THE US TRADE REPRESENTATIVE'S OFFICE PROMISED THAT THE US WOULDN'T CUT TARIFFS MORE THAN 15 ON THE CITRUS PRODUCTS AND FRESH VEGETABLES THAT FLORIDA FARMERS GROW BUT LATIN AMERICAN NATIONS SUCH AS BRAZIL ARE COUNTING ON FAR BIGGER AGRICULTURAL CONCESSIONS ACROSS THE BOARD IF THEY DON'T MATERIALIZE THE LATIN AMERICANS MAY BE RELUCTANT TO OPEN THEIR MARKETS TO FINANCIAL SERVICES AND OTHER FASTGROWING INDUSTRIES THE AMERICAN TEXTILE MANUFACTURERS INSTITUTE AGREED TO BACK NAFTA BECAUSE OF DOMESTICCONTENT RULES THAT REQUIRE TEXTILE MAKERS GENERALLY TO PRODUCE YARN AND FABRIC IN NORTH AMERICA TO QUALIFY FOR LOW TARIFFS BUT WITH PRESIDENT CLINTON BEHOLDEN TO THE US TEXTILE INDUSTRY FOR SUPPORTING NAFTA HE HAS PLEDGED TO LAWMAKERS FROM SOUTHERN TEXTILE STATES THAT HE WILL SEEK A PROLONGED PHASEOUT OF THE INTERNATIONAL TEXTILEQUOTA SYSTEM THAT SHIELDS US PRODUCERS FROM LOWWAGE COMPETITORS AS A RESULT INDIA AND PAKISTAN TWO MAJOR TEXTILE PRODUCERS COULD WELL WALK AWAY FROM THE FINAL GATT PACKAGE WITH ALL THE RETRENCHMENT AND THE OPPOSITION OF POLITICALLY POWERFUL FRENCH FARMERS TO TRADE LIBERALIZATION ANY GATT DEAL WILL PROBABLY BE MODEST SAYS MR FOXLEY THE CHILEAN FINANCE MINISTER THAT MAY NOT BE ENOUGH TO CONTROL THE MOUNTING TRADE BARRIERS OR COUNTER THE GROWING POLITICAL PRESSURE IN FAVOR OF NEOPROTECTIONISM HE WORRIES THE WORLD BANK'S CHIEF ECONOMIST FOR LATIN AMERICA SEBASTIAN EDWARDS NOTES THAT COLOMBIA CHILE AND SOME NATIONS IN CENTRAL AMERICA ARE CONSIDERING MEASURES TO PROTECT THEIR AGRICULTURE FROM COMPETITION THESE GUYS ARE SUFFERING FROM BEING SHUT OUT OF EUROPE AND THE US HE SAYS FOLLOWING RESOLUTION OF THE GATT DEAL THE PROSPECTS FOR FURTHER USLED INITIATIVES TO LIBERALIZE TRADE LOOK BLEAK FOR THE PAST 20 YEARS THE US CONGRESS HAS BEEN WILLING TO DELEGATE TO THE PRESIDENT FASTTRACK AUTHORITY TO NEGOTIATE TRADE DEALS AND TO LIMIT ITSELF TO VOTING YESORNO ON THE RESULTS WITHOUT PICKING THE PACT APART WITH SPECIALINTEREST AMENDMENTS NOWADAYS THE FASTTRACK FORMULA HAS COME TO REPRESENT THE ELITISM OF TRADE POLITICS WITH A SMALL NUMBER OF SPECIALISTS NEGOTIATING DEALS THAT BROADLY AFFECT THE ECONOMY CRITICS ESPECIALLY ENVIRONMENTALISTS WILL DEMAND A ROLE ON THE COMMITTEES THAT SET GOALS FOR TRADE NEGOTIATORS AND OVERSEE THEIR WORK BUT IF THE FASTTRACK FORMULA GOES YOU WON'T GET A TRADE DEAL SAYS TREASURY SECRETARY LLOYD BENTSEN WHO SHEPHERDED FASTTRACK BILLS THROUGH CONGRESS WHEN HE HEADED THE SENATE FINANCE COMMITTEE HE REASONS THAT FOREIGN NEGOTIATORS WOULDN'T MAKE THE NEEDED CONCESSIONS FOR A TRADE PACT THAT CONGRESS IS LIKELY TO REWRITE A MAJOR TEST OF THE POSTNAFTA WORLD WILL COME IN LATIN AMERICA NATIONS THERE HAVE BEEN WAITING ANXIOUSLY FOR THE US TO APPROVE THE PACT SO THEY CAN THEN SIGN ON AND GET TARIFFFREE ACCESS TO THE US MARKET BOLIVIAN PRESIDENT GONZALO SANCHEZ DE LOZADA GOES SO FAR AS TO LIKEN NAFTA TO THE SUN WITH THE REST OF THE ECONOMIES OF OUR HEMISPHERE LIKE PLANETS IN ORBIT AROUND IT BRINGING DOWN TRADE BARRIERS AND EXTENDING DEMOCRATIC PRACTICES BUT FEW SEE ANY REALISTIC PROSPECTS FOR EXTENDING NAFTA INTO A FREETRADE ZONE STRETCHING FROM ALASKA TO TIERRA DEL FUEGO AS PRESIDENT BUSH HAD PROPOSED NAFTA NEGOTIATORS INITIALLY DISCUSSED LETTING OTHERS APPLY FOR MEMBERSHIP IF THEY MET CERTAIN MACROECONOMIC STANDARDS BUT THE IDEA NEVER MADE IT INTO THE PACT AT A LATIN AMERICA CONFERENCE LAST MONTH DEPUTY US TRADE REPRESENTATIVE CHARLENE BARSHEFSKY DISPARAGED THE NOTION THAT HEMISPHERIC FREE TRADE WAS JUST AROUND THE CORNER THAT'S NOT THE CASE SHE SAID PRIVATELY ADMINISTRATION OFFICIALS SAY IT COULD TAKE AS LONG AS MR CLINTON'S SECOND TERM IF HE HAS ONE BEFORE THE US IS WILLING TO GEAR UP FOR A FIGHT TO ADD ANOTHER NATION TO NAFTA CONGRESS IS ALREADY BALKING AT EXTENDING NAFTASTYLE BENEFITS TO CARIBBEAN AND CENTRAL AMERICAN NATIONS BECAUSE OF LABORUNION FEARS THAT WAGE RATES THERE ARE EVEN LOWER THAN IN MEXICO MEANWHILE A DISPUTE OVER INTERNATIONAL TAX ISSUES SUGGESTS THE DIRECTIONS US TRADE POLICY MAY TAKE WHEN GATT NATIONS WERE NEGOTIATING AN AGREEMENT PROVIDING FAIR TAX TREATMENT FOR FOREIGN COMPANIES THE US REFUSED LAST MONTH TO SIGN ON THE REASON TREASURY OFFICIALS FIGURED THE US COULD ACT MORE EFFECTIVELY ON ITS OWN BY BARGAINING ONEONONE WITH OTHER NATIONS IT'S THIS ONEONONE APPROACH THAT THE US IS TAKING IN ASIA WHERE IT WILL BEGIN NEGOTIATIONS WITH JAPAN IN JANUARY AND WITH CHINA LATER NEXT YEAR WITH JAPAN THE US WANTS COMMITMENTS THAT A MUCHBIGGER PORTION OF THAT COUNTRY'S MARKET WILL BE RESERVED FOR FOREIGN COMPANIES AND PRIVATELY THREATENS TO IMPOSE HEAVY IMPORT TARIFFS IF JAPAN DOESN'T AGREE MS TYSON THE WHITE HOUSE ECONOMIST HAS PUSHED HARD FOR THE US TO TAKE A MORE AGGRESSIVE STANCE ON TRADE BUT SHE UNDERSTANDS THE DOWNSIDE OF WHAT JAGDISH BHAGWATI A COLUMBIA UNIVERSITY ECONOMIST CALLS AGGRESSIVE UNILATERALISM THE RAPID GROWTH OF ASIAN ECONOMIES MAKES THEM LESS VULNERABLE TO US MUSCLEFLEXING COMPARED WITH THE PAST SHE CONCEDES WE'RE NOT AS EFFECTIVE GOING IT ALONE 9311170121 931117 SYSTEM INDUSTRIES PROTECTION MILPITAS CALIF SYSTEM INDUSTRIES INC SAID IT FILED FOR CHAPTER 11 BANKRUPTCY LAW PROTECTION ON FRIDAY AS PART OF A PREVIOUSLY DISCLOSED PLAN TO BE ACQUIRED BY MTI TECHNOLOGY CORP OF ANAHEIM CALIF SYSTEM INDUSTRIES SAID IT PLANS TO CONTINUE TO OPERATE AND HAS SIGNED AN AGREEMENT FOR SALE OF ITS ASSETS TO MTI BOTH COMPANIES MAKE COMPUTER STORAGE SYSTEMS SUCH AS DISK DRIVES THE ACQUISITION IS EXPECTED TO BE COMPLETE BY YEAR'S END WHEN THE CLOSELY HELD MTI TECHNOLOGY EXPECTS TO GO PUBLIC 9311170120 931117 DIVIDEND NEWS MELLON BANK CORP MELLON BANK CORP CITING EXCELLENT PROSPECTS FOR CONTINUED SUCCESS BOOSTED ITS QUARTERLY DIVIDEND 47 TO 56 CENTS A SHARE FROM 38 CENTS THE NEW DIVIDEND IS PAYABLE FEB 15 TO STOCK OF RECORD JAN 31 SEPARATELY MELLON SAID THAT IN JANUARY IT WILL DISCONTINUE A 3 DISCOUNT NOW OFFERED TO PEOPLE WHO BUY MELLON SHARES THROUGH THE PITTSBURGH COMPANY'S DIVIDENDREINVESTMENT AND COMMON STOCKPURCHASE PLAN MELLON CLOSED YESTERDAY AT 54375 UP 150 OR 3 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9311170119 931117 INTERNATIONAL VOLKSWAGEN FIAT POST DROP IN MONTH'S SALES BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL FIAT SPA AND VOLKSWAGEN AG TOOK THE DISMAL HONORS OF SHOWING THE LARGEST EROSION IN NEWCAR SALES IN THE EUROPEAN MARKET LAST MONTH POSTING DECLINES OF NEARLY 20 FROM YEAREARLIER LEVELS AMID A WESTERN EUROPEAN CAR MARKET THAT WAS 138 WEAKER LAST MONTH COMPARED WITH OCTOBER 1992 FIAT SAW SALES ERODE 199 TO 101170 UNITS FROM 126310 UNITS SALES OF VW EUROPE'S LARGEST AUTO MAKER FELL 19 TO 150320 UNITS FROM 185480 THE STATISTICS WERE RELEASED BY THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION IN BRUSSELS IN ADDITION TO FUNDAMENTAL WEAKNESS IN THE ITALIAN CAR MARKET FIAT'S POOR PERFORMANCE WAS ATTRIBUTED TO THE COMPANY'S HAVING AN INSUFFICIENT NUMBER OF ATTRACTIVE MODELS AT COMPETITIVE PRICES PRIOR TO ITS LAUNCH OF THE PUNTO SAID JOHN LAWSON RESEARCH DIRECTOR AT DRI/MC GRAW HILL IN LONDON ALTHOUGH THE PUNTO IS EXPECTED TO BE THE ENGINE FOR THE COMPANY'S RECOVERY THE LIMITED PUNTO PRODUCTION SLATED FOR THIS YEAR WON'T HELP FIAT BOOST SALES FIGURES UNTIL WELL INTO 1994 MR LAWSON SAID VW MEANWHILE AGAIN SUFFERED FROM CONTINUED WEAKNESS IN ITS MAIN MARKETS OF GERMANY AND SPAIN IN A RARE BRIGHT SPOT GERMAN LUXURYCAR MAKER MERCEDESBENZ AG A UNIT OF DAIMLERBENZ AG RACKED UP A 152 INCREASE IN OCTOBER SELLING 34850 UNITS COMPARED WITH 30260 A YEAR EARLIER THAT JUMP WAS ATTRIBUTED PARTLY TO THE LAUNCH OF THE LOWERPRICED CCLASS CARS AS WELL AS THE RESTYLING OF THE ECLASS MERCEDES ANALYSTS SAID NOW THERE IS A CHANCE THAT MERCEDES COULD JUST CATCH BMW BY THE END OF THE YEAR MR LAWSON SAID SO FAR THIS YEAR BAYERISCHE MOTOREN WERKE AG HAS SOLD 317660 UNITS COMPARED WITH 294370 SOLD BY MERCEDES PSA PEUGEOT CITROEN SA AND FORD MOTOR CO MEANWHILE HELD THEIR SALES DECLINES TO ONLY 78 AND 88 RESPECTIVELY THANKS PRIMARILY TO GOOD REPRESENTATION IN THE RECOVERING UK MARKET WHICH ROSE 155 LAST MONTH JAPANESE PRODUCERS MEANWHILE SHOWED A 144 DROP IN OCTOBER SELLING JUST 105050 CARS COMPARED WITH 122750 IN OCTOBER LAST YEAR BUT THEIR SHARE OF THE WESTERN EUROPEAN MARKET REMAINED CONSTANT AT 115 IN OCTOBER THE WESTERN EUROPEAN MARKET AS A WHOLE EASED 138 TO 917350 UNITS IN OCTOBER IN THE FIRST 10 MONTHS OF THE YEAR IT DROPPED 152 TO 9809410 UNITS FROM 11567410 UNITS IN THE YEAREARLIER PERIOD 9311170117 931117 TECHNOLOGY CRAY COMPUTER EXPECTS SALE IN '94 OF SUPERCOMPUTER BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND ORE DESPITE RECENT SETBACKS CRAY COMPUTER CORP EXPECTS TO MAKE ITS FIRST SALE OF A SUPERCOMPUTER NEXT YEAR AND TO UNVEIL ITS NEXTGENERATION CRAY 4 BY THE END OF 1994 THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SEYMOUR CRAY SAID IN AN INTERVIEW MR CRAY'S LATEST SUPERCOMPUTER COMPANY HAS STRUGGLED AND ITS FAILURE TO WIN A 14 MILLION DEFENSE NUCLEAR AGENCY CONTRACT WHICH WENT TO CRAY RESEARCH INC LAST MONTH HAS INCREASED SKEPTICISM ABOUT ITS PROSPECTS CRAY COMPUTER REPORTED A LOSS OF 35 MILLION OR 117 A SHARE FOR THE FIRST NINE MONTHS OF 1993 ON NEGLIGIBLE REVENUE CRAY COMPUTER WAS SPUN OUT OF CRAY RESEARCH IN 1989 AFTER THE BIGGER COMPANY DECIDED TO STOP FINANCING MR CRAY'S RESEARCH BUT MR CRAY AND OTHER EXECUTIVES SAID THERE ARE SEVERAL REASONS FOR OPTIMISM THEY SAID THEY EXPECT THERE WILL BE AS MANY AS A DOZEN SALE OPPORTUNITIES FOR 10 MILLION SUPERCOMPUTERS SUCH AS THE CRAY 3 IN THE NEXT 12 MONTHS THEY SAID THE FIRST CRAY 3 A DEVELOPMENTAL MACHINE FOR WHICH THE COMPANY DIDN'T RECEIVE REVENUE IS CURRENTLY OPERATING AT THE NATIONAL CENTER FOR ATMOSPHERIC RESEARCH IN BOULDER COLO AND THEY SAID THE LOSS OF THE SALE AT THE DEFENSE NUCLEAR AGENCY WHICH CRAY IS PROTESTING SHOWED THAT THE CRAY 3 IS COMPETITIVE WITH THE CRAY RESEARCH C90 I BELIEVE WE'LL SEE SOME SALES ACTIVITY NEXT YEAR MR CRAY SAID CRAY COMPUTER NEEDS TO MAKE A SALE THE 67YEAROLD MR CRAY IS PULLING OUT ALL THE STOPS EVEN GRANTING RARE INTERVIEWS TO THE PRESS AT THE SUPERCOMPUTING '93 SHOW HERE CRAY COMPUTER IS BASED IN COLORADO SPRINGS COLO CRAY HAS ALMOST 30 MILLION IN CASH RAISED IN A PRIVATE PLACEMENT IN JUNE WHICH IS ENOUGH TO KEEP OPERATING THROUGH MAY HOWEVER IT DOESN'T HAVE ANY DEBT AND MR CRAY SAID IT COULD RAISE MORE FUNDS BY MORTGAGING ITS FACILITIES AND EQUIPMENT WITH 400 EMPLOYEES WE COULD CUT COSTS BUT WE DON'T WANT TO MR CRAY SAID NOTING THAT THE COMPANY NEEDS TO KEEP BUILDING A SUPERCOMPUTER FOR ITS OWN USE AND FOR DEMONSTRATING CAPABILITIES TO BUYERS MOST ANALYSTS AND COMPETITORS ARE DUBIOUS IT'S DIFFICULT TO BELIEVE IN THEIR LONGTERM VIABILITY WITHOUT ORDERS SAID GARY SMABY A SUPERCOMPUTER MARKET RESEARCHER IN MINNEAPOLIS SEYMOUR IS AN ICON IN THE INDUSTRY AND EVERY TIME I PREDICT HIS DEMISE I FEEL BAD ABOUT IT BUT OTHERS DON'T COUNT CRAY OUT CHRISTOPHER WILLARD WHO FOLLOWS THE INDUSTRY FOR INTERNATIONAL DATA GROUP SAID THE MARKET MIGHT DECIDE THAT IT WANTS TWO SUPERCOMPUTER MAKERS TO KEEP THINGS HONEST 9311170116 931117 WHO'S NEWS BANKUNITED FINANCIAL CORP BANKUNITED FINANCIAL CORP CORAL GABLES FLA JOHN P BULLARD JR 45 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS FEDERAL SAVINGS BANK MR BULLARD A BANK CONSULTANT WHO PREVIOUSLY SERVED AS EXECUTIVE VICE PRESIDENT OF INSTITUTIONAL BANKING AT SOUTHEAST BANK SUCCEEDS ALFRED R CAMNER 48 AS PRESIDENT MR CAMNER REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR BULLARD SUCCEEDS STEVEN HAYWORTH 36 AS CHIEF OPERATING OFFICER THE COMPANY SAID MR HAYWORTH RESIGNED IN SEPTEMBER TO JOIN AN INVESTMENT GROUP THAT WOULD ACQUIRE A BANK 9311170115 931117 WHO'S NEWS FOREST OIL CORP FOREST OIL CORP DENVER ROBERT S BOSWELL VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED PRESIDENT OF THIS OIL AND NATURALGAS CONCERN MR BOSWELL 44 YEARS OLD ASSUMES THE POST FROM WILLIAM L DORN ALSO 44 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9311170114 931117 WORLD MARKETS MEXICAN STOCKS SOAR 17 TO 5TH HIGH IN A ROW WHILE TOKYO SHARES RECOVER SOME LOST GROUND A WALL STREET JOURNAL NEWS ROUNDUP STOCKS IN MEXICO CITY ROCKETED TO A FIFTH STRAIGHT RECORD AS INVESTORS CONTINUED TO BET THAT THE US HOUSE OF REPRESENTATIVES WILL APPROVE THE NORTH AMERICAN FREE TRADE AGREEMENT IN A VOTE SCHEDULED FOR TODAY TOKYO PRICES POSTED STRONG GAINS TUESDAY IN CHOPPY TRADING AS SEVERAL BOUTS OF SHORTCOVERING IN INDEX FUTURES LED STOCKS HIGHER LONDON SHARES FINISHED MIXED TO HIGHER AS CAUTION REIGNED AHEAD OF THE BRITISH GOVERNMENT'S BUDGET STATEMENT BUT FRANKFURT EQUITIES' WAVE PUSHED UP BY THE GERMAN INTERESTRATE ARENA CONTINUED TO CREST AND PRICES JUMPED 11 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11135 UP 034 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS SOFTWARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12063 UP 291 OR 25 WITH NOVELL OF THE US POSTING A 54 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 16541 DOWN 424 OR 25 WITH DUNLOP OF MALAYSIA SLIDING 52 IN LOCAL CURRENCY IN MEXICO CITY STOCKS SOARED 17 SUSTAINING A SURGE THAT HAS PUSHED PRICES UP ALMOST 12 OVER THE PAST SIX SESSIONS THE RALLY WAS LED BY TELEFONOS DE MEXICO AFTER FOREIGN AND DOMESTIC INVESTORS PEELED OFF SOME PROFITS IN THAT BELLWETHER ISSUE A DAY EARLIER MANY INVESTORS CONSIDER TELMEX NAFTAPROOFINEXPENSIVE ON A PRICE/EARNINGS BASIS AT ALMOST 11 TIMES ESTIMATED 1993 EARNINGS AND PROTECTED FROM LONGDISTANCE COMPETITION UNTIL 1997 THE MEXICO CITY MARKET ALSO WAS BOLSTERED BY THE MEXICAN FINANCE MINISTER'S PREDICTION A DAY EARLIER THAT THE COUNTRY'S ECONOMIC REFORM AND DEVELOPMENT WILL CONTINUE EVEN IF NAFTA IS DEFEATED BY US LAWMAKERS AMERICAN DEPOSITARY RECEIPTS ON THE NEW YORK STOCK EXCHANGE WAS EXTREMELY HEAVY WITH ALL ISSUES BOOKING SOLID GAINS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUNGED 41894 POINTS MONDAY RECOVERED 17151 TO 1824612 IN EARLY TRADING WEDNESDAY THE NIKKEI WAS DOWN 9440 POINTS AT 1815172 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 260 MILLION SHARES DOWN FROM 307 MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 535452 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLID 2642 POINTS MONDAY PUSHED UP 969 TO 154934 THE MARKET LACKED ANY FUNDAMENTALS AS A TILLER AND MANY FUND MANAGERS ATTENDED AN INDUSTRY CONFERENCE FOR THE DAY SHARES OPENED SHARPLY LOWER ON DISAPPOINTMENT FROM THE NIKKEI'S INABILITY THE PREVIOUS DAY TO SUSTAIN FRIDAY'S REBOUND AND ON UNCERTAINTY ABOUT JAPAN'S POLITICAL SITUATION FOLLOWING THE FAILURE OF POLITICALREFORM TALKS BETWEEN PRIME MINISTER MORIHIRO HOSOKAWA AND THE LIBERAL DEMOCRATIC PARTY LEADER MR HOSOKAWA SAID TUESDAY HIS SEVENPARTY COALITION WOULD TRY ON ITS OWN TO PUSH THE ANTICORRUPTION REFORMS THROUGH PARLIAMENT STOCKS BEGAN TO REBOUND AND INVESTORS COVERED SHORT POSITIONS ON MIDMORNING REPORTS LATER RULED OUT THAT JAPANESE FINANCE MINISTER HIROHISA FUJII HAD PLEDGED TO IMPLEMENT PREVIOUSLY REPORTED MEASURES TO BOLSTER THE STOCK MARKET A SHORT SALE IS THE SALE OF BORROWED STOCK IN HOPES OF PROFITING BY BUYING AN EQUAL NUMBER OF SHARES LATER AT A LOWER PRICE TO REPLACE THE BORROWED STOCK SHORT SELLERS SENSING A RISING MARKET SCRAMBLE TO COVER THEIR POSITIONS TO AVOID DEEPER LOSSES ALSO PUBLIC PENSION FUNDS HAD PLACED LIMIT ORDERS TO BUY AT LOWER LEVELS AND BUYING WAS BOOSTED BY MORNING COMMENTS BY JAPAN'S ECONOMIC PLANNING AGENCY CHIEF INDICATING THAT THE GOVERNMENT SHOULD TAKE ADDITIONAL STEPS TO BOLSTER THE ECONOMY BY THE END OF 1993 TOKYO'S TOP GAINERS WERE THE SECURITIES BANKING AND OTHER FINANCIAL SECTORS ON BARGAIN HUNTING AND ON EXPECTATIONS THEY WOULD BENEFIT FROM A GOVERNMENT STIMULUS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 42 POINTS TO 30975 THE FT 30STOCK INDEX EDGED UP 15 POINTS TO 23479 VOLUME WAS 6548 MILLION SHARES UP FROM 4936 MILLION SHARES A DAY EARLIER INVESTORS CONTINUED TO PLAY IT SAFE PRIOR TO THE BRITISH GOVERNMENT'S NOV 30 BUDGET ANNOUNCEMENT THE MARKET ALSO WAS EDGY AHEAD OF RETAIL SALES AND INFLATION DATA TO BE RELEASED TODAY THE FTSE 100 INDEX WAS UP AS MUCH AS 148 POINTS DURING THE SESSION LED BY DEMAND FROM THE FUTURES MARKET THOUGH FUTURES POSITIONS MAY HAVE BEEN BID UP BY SECURITIES HOUSES WITH BIG CASH POSITIONS IN HOPES OF UNLOADING THE SHARES ON SMALL INVESTORS NEAR THE CLOSE STOCKS FELL PREY TO PROFITTAKING THE APPROACH OF THE BUDGET ANNOUNCEMENT HAS SET OFF A TRADITIONAL FLURRY OF SPECULATION ABOUT PROSPECTS FOR TAX INCREASES AND INTERESTRATE CUTS LEAVING THE STOCK MARKET A TEMPORARILY RISKY BET WHILE MANY EQUITIES ARE CONSIDERED FULLY VALUED FOR NOW THE MARKET ALSO WAS PRESSURED BY DISAPPOINTING FIGURES ON BRITAIN'S PUBLICSECTOR BORROWING REQUIREMENT WHICH WAS BIGGER THAN EXPECTED IN OCTOBER IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 2261 POINTS TO 207172 AS GERMAN SECURITIES REPURCHASE AGREEMENT RATES WENT DOWN AND HOPES FOR CUTS SOON IN BENCHMARK INTEREST RATES STAYED UP THE DAX ALSO WAS BOOSTED BY STRENGTH IN INDUSTRIAL SHARES STEMMING FROM GERMAN CHANCELLOR HELMUT KOHL'S VISIT TO CHINA IN PARIS STOCKS FINISHED SLIGHTLY LOWER AFTER A LATE DOWNTURN AMID A DELAYED CLOSING AND CONFUSION ABOUT THE WAY CHANGES IN THE MAKEUP OF THE MAIN INDEX WERE HANDLED DURING THE SESSION IN MILAN TECHNICAL FACTORS TIED TO THE LAST DAY OF THE CURRENT TRADING ACCOUNT AND THIS WEEKEND'S LOCAL ITALIAN ELECTIONS LEFT SHARES WEAKER IN MADRID EQUITIES CLIMBED SHARPLY LED BY AN OILSECTOR RALLY ON FAVORABLE EARNINGS IN STOCKHOLM SHARES SKIDDED 1 BECAUSE OF BIG DROPS BY BLUE CHIPS AS SOME INVESTORS TOOK PROFITS AND SWITCHED INTO OTHER ISSUES IN HONG KONG A RECENT BULL RUN TO SUCCESSIVE HIGHS ENDED WHEN PROFITTAKING NARROWLY WEAKENED THE MAIN INDEX THOUGH THE OVERALL MARKET FINISHED MIXED SIMILARLY IN TAIPEI FOLLOWING THREE SESSIONS OF GAINS PRICES EDGED DOWN AS INVESTORS TOOK PROFITS IN SEOUL LATE WAVES OF PROFITTAKING AFTER A RECENT RALLY SENT STOCKS PLUNGING WIPING OUT MORNING GAINS AFTER EQUITIES WERE CONSIDERED OVERVALUED AND AN EXPECTED FLOW OF CASH INTO THE MARKET WAS ONLY TRICKLING LARGE MANUFACTURERS BANKS AND SECURITIES FIRMS SHARES WERE HURT WORST BUT IN MANILA STOCKS ROSE SOLIDLY BUOYED BY BUYING BY FOREIGN INVESTORS AMONG CORPORATE DEVELOPMENTS IN LONDON BOC GROUP PLUMMETED 30 PENCE OR 48 TO 596 PENCE 887 THE INDUSTRIAL GASES AND HEALTHCARE COMPANY REPORTED THAT PRETAX PROFIT FOR THE YEAR ENDED SEPT 30 ROSE 57 TO 3376 MILLION 5027 MILLION FROM A YEAR EARLIER BOOSTED BY FAVORABLE EXCHANGERATE TRANSLATIONS THE RESULTS WERE IN LINE WITH MARKET EXPECTATIONS BUT BOC SAID THE ECONOMIC RECOVERY IN ITS KEY MARKETS IS SO PATCHY THAT IT EXPECTS LOW GROWTH AND PRICE PRESSURES TO CONTINUE IN THE COMING MONTHS 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 9311170113 931116 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY NOVEMBER 3 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9311170112 931117 WHO'S NEWS BARNES & NOBLE INC BARNES & NOBLE INC NEW YORK WILLIAM DILLARD II 48 YEARS OLD AND WILLIAM SHELUCK JR 53 WERE ELECTED DIRECTORS OF THIS BOOK SUPERSTORES OPERATOR FILLING TWO VACANCIES ON THE SEVENMEMBER BOARD MR DILLARD IS PRESIDENT AND CHIEF OPERATING OFFICER OF DILLARD DEPARTMENT STORES INC MR SHELUCK IS A RETIRED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMMERCIAL BANK NATIONAR 9311170111 931116 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9311170110 931117 SOUTHERN PACIFIC RAIL CORP SAN FRANCISCO SOUTHERN PACIFIC LINES SAID UNITED TRANSPORTATION UNION MEMBERS RATIFIED AN AGREEMENT THAT INCLUDES VOLUNTARY SEVERANCE OFFERS TO 210 SURPLUS TRAIN EMPLOYEES SOUTHERN PACIFIC LINES A UNIT OF SOUTHERN PACIFIC RAIL CORP SAID THE AGREEMENT COVERS ABOUT 2300 EMPLOYEES ON THE WESTERN PORTION OF ITS RAIL SYSTEM THE AGREEMENT CALLS FOR CHANGES IN WORK RULES AND ELIMINATION OF ARRANGEMENTS THAT PAY 2600 A MONTH TO TRAINMEN WHO WERE MADE SURPLUS BY REDUCTIONS IN THE SIZE OF FREIGHT TRAIN CREWS 9311170108 931117 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 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 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 315 30 DAYS 341 60 DAYS 340 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 269 TWO MONTHS 271 THREE MONTHS 281 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 332 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 327 60 DAYS 327 90 DAYS 327 120 DAYS 328 150 DAYS 329 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 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 694 60 DAYS 702 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 693 60 DAYS 703 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 9311170107 931117 TECHNOLOGY IN THE LAB COLORING DATA ISN'T A BLACKWHITE ISSUE BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL HAWTHORNE NY AS A POSTDOCTORAL STUDENT IN EXPERIMENTAL PSYCHOLOGY A DECADE AGO BERNICE ROGOWITZ WAS ATTENDING A NEUROLOGY LECTURE WHEN AN ALARMING DISCREPANCY SHOWED UP CONCERNING A PATIENT THOUGHT TO BE SUFFERING FROM A BRAIN TUMOR A DIGITAL XRAY CREATED FROM A COMPUTER SCAN IN THE MORNING SHOWED A TUMOR IN THE SUSPECTED PLACE BUT IN ANOTHER VERSION OF THE SAME SCAN LATER THAT DAY THERE WAS NO TUMOR AT ALL NO ONE KNEW WHICH PICTURE WAS RIGHT DID A SIMPLE SHADOW IN THE FIRST VERSION CREATE WHAT LOOKED LIKE A TUMOR OR WAS THE COLOR SHADING IN THE SECOND SHOT TOO LIGHT TO SHOW THE TUMOR THAT MIGHT REALLY BE THERE I WAS APPALLED RECALLS MS ROGOWITZ A PSYCHOLOGIST SPECIALIZING IN VISUAL PERCEPTION THE EXPERIENCE SET HER OFF IN PURSUIT OF THE RESEARCH SHE NOW PERFORMS IN AN INTERNATIONAL BUSINESS MACHINES CORP LAB WHERE A SMALL TEAM IS TRYING TO DEVISE HARD RULES FOR WHICH COLORS SHOULD BE USED TO REPRESENT WHAT DATA IN COMPUTER VISUALIZATION COMPUTERS HAVE LONG BEEN MUCH BETTER AT CHURNING OUT REAMS OF NUMBERS THAN THEY ARE AT PAINTING PICTURES THAT CAN SHOW IN AN INSTANT WHAT THOSE NUMBERS MEAN SOFTWARE IS IMPROVING IN THAT TASK A PROCESS THE INDUSTRY LIKES TO CALL VISUALIZATION BUT MORE SUBTLE ISSUES OF THE RIGHT COLORS AT THE RIGHT TIME HAVE YET TO BE FIGURED OUT THAT IS MS ROGOWITZ'S PURSUIT AND SHE IS JUST IN TIME SCIENTISTS THESE DAYS ARE USING ALL MANNER OF COMPUTER DATA FOR SUCH ARCANE THINGS AS ATMOSPHERIC CONTENT RAINFALL LEVELS AND ECONOMIC DATA TO PRODUCE COMPUTERIZED PICTURES AND VIDEOS THEY CAN SHOW A RENDERING OF THE GAPING HOLE IN THE OZONE A CHANGING MAP OF WEATHER PATTERNS AND BIOLOGICAL SIMULATIONS COMPARED WITH THE BLACKGRAYANDWHITE READOUTS THAT MOST PEOPLE IN MEDICINE SEEM TO PREFER COLOR IS SO PRETTY AS TO BE DISTRACTING COLOR CAN SHOW MORE STRUCTURES AND DETAIL THAN BLACK AND WHITE BUT COLOR SELECTION CAN BE RATHER HAZARDOUS AN ILLADVISED FLASH OF RED CAN OVERWHELM THE PICTURE EVEN THOUGH THE DATA IT DEPICTS MIGHT BE UNIMPORTANT THERE'S THE HORRIBLE TEMPTATION TO BELIEVE THAT IF IT COMES FROM A COMPUTER IT MUST BE TRUE SAYS MS ROGOWITZ THAT IS PARTLY WHY THE MEDICAL COMMUNITY SEES GRAY AND THE SCALES OF WHITE TO BLACK TO BE THE MOST PRACTICAL AND SAFEST CHOICE FOR DIGITAL IMAGES THE BRAIN CAN PERCEIVE MORE DISCRIMINATORY SHADES OF GRAY THAN ANY OTHER COLOR 128 SHADES FOR SPECIALLY TRAINED MEDICAL PERSONNEL GRAY ALSO DOESN'T MAKE SUPERFLUOUS DATA JUMP OUT AT DOCTORS JUST BECAUSE OF A CERTAIN HUE WITHOUT CAREFUL USE OF COLOR THE IMAGES CAN LOOK PRETTY BUT THEY MAY BE LESS INFORMATIVE SAYS JUSTIN PEARLMAN DIRECTOR OF MAGNETIC RESONANCE IMAGE TECHNOLOGY AT BETH ISRAEL HOSPITAL IN BOSTON FOR IBM'S MS ROGOWITZ FIGURING OUT HOW COLOR FITS INTO THE PICTURE REQUIRES INSIGHT INTO THE EYE AND THE BRAIN RATHER THAN HARDCORE KNOWLEDGE OF SOFTWARE CODE A SMALL SOFTSPOKEN WOMAN SHE WORKS IN A LAB WITH LLOYD TREINISH A BURLY MAN WITH A BODYBUILDER'S FIGURE WHO CAME TO IBM FROM THE GODDARD SPACE CENTER HE WANTS TO DEVELOP WAYS TO UTILIZE THE ARCHIVES OF DATA COLLECTED FROM SPACE AND FROM ALL OVER THE WORLD THAT HAVE NEVER BEEN PUT INTO A DIGESTIBLE FORMAT THEY WORK IN A SATELLITE LAB OF IBM'S THOMAS J WATSON RESEARCH CENTER IN AN ARRAY OF SHINY CLEAN LABORATORIES AND OFFICES LAID OUT IN A SERIES OF GLASSWALLED TOWERS ONE RECENT DAY MS ROGOWITZ SITS SURROUNDED BY BOOKS AT A ROUND TABLE OVERLOOKING THE HUDSON RIVER VALLEY'S BRILLIANT FALL FOLIAGE ARMED WITH ONLY A SHEET OF PAPER AND A PEN SHE WRITES THEORETICAL NOTES ON COLOR AND PERCEPTION RELYING ON REAMS OF SCIENTIFIC JOURNALS ON HOW THE BRAIN PERCEIVES COLORS AND ON ART BOOKS AND DECORATING JOURNALS AS WELL HER REASONING PROCESS IS PRACTICAL AND LOWTECH AN IBM PATENT ATTORNEY WANTED TO UNDERSTAND THE INTERACTIVE COLORSELECTION PROCESS HER TEAM IS DEVELOPING FOR USERS SO MS ROGOWITZ SKETCHED A PICTURE OF A MAN WEARING A TIE AND DREW ARROWS AND BOXES SHOWING THE COLOR CONSTRAINTS ON THE REST OF THE SUIT GIVEN THE PATTERN AND COLORS ON THE TIE IF THE TIE IS RED A PINK SHIRT IS OUT THE TRICK IS PUTTING ALL HER REASONING INTO AN EASYTOUSE AND RELIABLE SYSTEM SHE IS STARTING WITH A LIBRARY OF COLOR MAPS BASED ON PRINCIPLES OF PERCEPTION SCIENTISTS KNOW THAT THE BRAIN HAS CERTAIN PATHS OR AXES FOR DIFFERENT COLOR RECEPTORS AND THAT RED AND GREEN LIE ON ONE AXIS WHILE BLUE AND YELLOW LIE ON ANOTHER SO THE BRAIN HAS AN EASIER TIME HANDLING A GRADUAL CHANGE FROM RED TO GREEN THAN IT DOES GOING FROM RED TO BLUE SINCE BLUE LIES ON A SEPARATE AXIS YET PEOPLE SEEM ALWAYS TO WANT TO SHOW TEMPERATURE CHANGES AND THE LIKE WITH A COLOR SCALE THAT STARTS WITH BLUE COLD AND RUNS TO RED HOT THE BRAIN HAS A TOUGH TIME PERCEIVING THIS AS THE GRADUAL SEAMLESS CHANGE THAT IS MEANT TO BE REPRESENTED INSTEAD THE BRAIN SEES COLORS THAT STOP AND START AS IF THERE WERE SUDDEN AND STARK CHANGES IN TEMPERATURE DRAWING ON SCIENTIFIC ARTICLES MS ROGOWITZ FIGURES THAT TEMPERATURE CHANGES AND OTHER CONTINUOUS DATA SHOULD BE COLORED IN REDS AND GREENS OR BLUES AND YELLOWS EVEN IF IT'S NOT AS GLAMOROUS DOESN'T IT ALL BLEND TOGETHER AND LOOK CONTINUOUS SHE ASKS PULLING OUT HER OWN VISUALIZATION OF A MAP OF THE EARTH'S TEMPERATURES THAT LOOKS QUITE DIFFERENT FROM THE USUAL WEATHER MAP THAT'S BECAUSE THE BRAIN CAN PERCEIVE SHADES AND CHANGES BETTER RATHER THAN JUMPING FROM COLOR TO COLOR ANOTHER PART OF THE COLOR PUZZLE IS THE FACT THAT CERTAIN COLORS MAKE OBJECTS LOOK BIGGER OR SMALLER YELLOW LOOKS BIGGER THAN DARK BLUE FOR EXAMPLE BECAUSE IT HAS MORE LUMINANCE AND THUS LOOKS BRIGHTER LOOK SAYS MS ROGOWITZ POINTING TO A PICTURE OF A LINE OF BRAIN NODULES YOU'D THINK THIS YELLOW ONE IS BIGGER RIGHT BRAIN NODULES SHOULD BE GIVEN DIFFERENT COLORS ONLY IF DOCTORS WANT TO DISTINGUISH FUNCTION RATHER THAN STUDY SIZE SHE SAYS IF THEY WANT EVERYTHING TO LOOK THE SAME SIZE THEY MIGHT CONSIDER CHOOSING COLORS THAT HAVE THE SAME LUMINANCE LIKE A BRIGHT BLUE AND BRIGHT YELLOW SETTING OUT SUCH RULES HOWEVER IS PROVING TO BE DIFFICULT MS ROGOWITZ HOPES HER WORK WILL END UP IN A SOFTWARE PRODUCT THAT IBM CAN SELL TO SCIENTISTS AND TECHNICIANS TO ASSURE THEM THAT THE BEAUTIFUL PICTURES THEY MAKE WILL BE ACCURATE TOO BUT THE WORK IS SO PRELIMINARY NOW THAT SHE ISN'T SURE IF MUCH LESS WHEN IT WILL END UP IN A PRODUCT 9311170106 931117 MANAGING YOUR CAREER BY GILBERT FUCHSBERG GOING FOR AN MBA YOUR BOSS YOUR BOSS'S BOSS AND YOUR CHIEF EXECUTIVE OFFICER PROBABLY ALL HAVE ONE BUT YOU DON'T IT'S AN MBA DEGREE STILL ESSENTIAL FOR GETTING AHEAD IN MANY BIG COMPANIES BUT THESE DAYS SELECTING THE DEGREE ROUTE THAT BEST FITS YOUR CAREER NEEDS CAN CONFOUND EVEN THE SMARTEST PROSPECTIVE STUDENT ON THE ONE HAND GETTING A MASTER'S IN BUSINESS ADMINISTRATION HAS NEVER BEEN EASIER IN THE US ALONE THERE ARE NEARLY 275 ACCREDITED GRADUATE BUSINESS SCHOOLS TWICE AS MANY AS 20 YEARS AGO THERE ARE ALSO A GROWING NUMBER OF WAYS TO COMPLETE THE DEGREE TAKING ANYWHERE FROM ONE TO SIX YEARS ON THE OTHER HAND NOT ALL MBAS ARE EQUAL THE QUALITY OF SCHOOLS VARIES WIDELY OF COURSE AND EMPLOYERS PERCEIVE THE VALUE OF FULLTIME EVENING AND WEEKEND MASTER'S PROGRAMS DIFFERENTLY WE KNOW THE COURSES ARE ALL SUPPOSEDLY THE SAME BUT THE MARKETPLACE DOESN'T QUITE SEE IT THAT WAY AND I SUPPOSE NEITHER DO WE SAYS PETER C THORP A CITICORP VICE PRESIDENT WHO OVERSEES MBA RECRUITING TO PICK THE RIGHT PROGRAM AND AVOID CAREER SETBACKS LATER YOU MUST KNOW WHAT YOU WANT FROM THE DEGREE CORPORATE RECRUITERS SAY A TRADITIONAL FULLTIME MBA PROGRAM MAKES THE MOST SENSE IF YOU HOPE TO CHANGE INDUSTRIES OR FUNCTIONS IT'S A CLEAN BREAK SAYS CHIP RAE SENIOR VICE PRESIDENT RECRUITING AND TRAINING AT SMITH BARNEY SHEARSON IT GIVES YOU A CHANCE TO REPACKAGE YOURSELF FULLTIME PROGRAMS TYPICALLY LASTING TWO YEARS ALSO GIVE YOU THE BEST OPPORTUNITY TO FLIRT WITH PROSPECTIVE EMPLOYERS THROUGH FIELD STUDY INTERNSHIPS AND CAMPUS RECRUITING PROGRAMS THOUGH ONCE AIMED AT NEW COLLEGE GRADUATES MOST FULLTIME PROGRAMS NOW REQUIRE APPLICANTS TO HAVE AT LEAST SEVERAL YEARS OF WORK EXPERIENCE THESE PROGRAMS ACCEPT STUDENTS IN THEIR 30S AND EVEN THEIR 40S BUT FULLTIME PROGRAMS COST THE MOST IN TUITION EXPENSES AND LOST INCOME AND BECAUSE FEW EMPLOYERS WILL PICK UP THE BILL YOU MAY BE HEAVILY IN DEBT WHEN YOU GRADUATE IT'S POSSIBLE TO LIMIT THE EXPENSE BY CHOOSING A PROGRAM THAT SQUEEZES FULLTIME STUDY INTO AS LITTLE AS A YEAR ONE SIGNIFICANT TRADEOFF SUCH PROGRAMS TYPICALLY LEAVE YOU NO TIME FOR A SUMMER JOB OFTEN A CRITICAL OPPORTUNITY TO GET EXPERIENCE OR IMPRESS AN EMPLOYER AN EVENING MBA DEGREE IS AN INCREASINGLY POPULAR ALTERNATIVE YOU KEEP YOUR JOB YOUR EMPLOYER MAY HELP PAY TUITION AND YOU ALSO MAY GET A CAREER BOOST TWO YEARS AGO MICHAEL D REGAN FINISHED AN MBA AT THE UNIVERSITY OF ROCHESTER'S SIMON SCHOOL HE SAYS THE DEGREE HELPED HIM GET PROMOTED TO A 46000AYEAR MANAGERIAL JOB AT AN EASTMAN KODAK RESEARCH LABORATORY IN ROCHESTER NY HE HAD PREVIOUSLY BEEN A KODAK INDUSTRIAL ENGINEER MAKING 35000 A YEAR WITHOUT THE DEGREE MR REGAN ADDS I'D STILL BE WORKING MY WAY UP STILL HE HASN'T GOTTEN THE KIND OF PAY INCREASE THAT HE BELIEVES HIS NEW CREDENTIALS MERIT IF I WENT OUTSIDE I COULD GET A LOT MORE HE NOTES BUT I'M NOT WORKING FOR MONEY NOW I'M WORKING FOR EXPERIENCE TO GET THE BIGGEST BOOST FROM AN MBA EARNED AT NIGHT YOU SHOULD TALK UP THE DEGREE SO THAT YOUR EMPLOYER KNOWS THAT HE'S RECEIVING BENEFITS FROM YOUR EDUCATION JUST AS YOU ARE SAYS DIANE DIMEFF WHO RUNS THE THREEYEAR EVENING PROGRAM AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY'S HAAS SCHOOL THAT APPROACH MAY ALSO PLACATE BOSSES WHO MIGHT OTHERWISE RESENT YOUR ABSENCE AND INTERFERE WITH YOUR NEED TO LEAVE PROMPTLY FOR CLASS SEVERAL NIGHTS A WEEK STILL GETTING YOUR BUSINESS DEGREE AT NIGHT TYPICALLY TAKES THREE TO SIX YEARS AND MAY HOLD LIMITED VALUE IF YOU WANT TO CHANGE INDUSTRIES OR JOB FUNCTIONS IT'S VERY DIFFICULT TO BE CAST IN A NEW LIGHT AS MBA MATERIAL COMPANIES WANT TO HIRE WHEN YOU GO TO SCHOOL PART TIME AND STILL WORK FOR YOUR OLD COMPANY SAYS BARBARA B GREGORICH DIRECTOR OF GRADUATE ADMISSIONS AT NEW YORK UNIVERSITY'S STERN SCHOOL CONSIDER MICHAEL HYLAND WHO STARTED ATTENDING STERN'S EVENING PROGRAM IN 1990 WHILE WORKING AS A RELATIONSHIP MANAGER AT JP MORGAN IN NEW YORK TWO YEARS INTO THE FOURYEAR PROGRAM HE LEARNED THAT HIS DEGREE PROBABLY WOULDN'T ASSIST HIM IN SWITCHING INTO SALES AND TRADING AT MORGAN AREAS THAT ARE TYPICALLY OPEN TO NEW MBAS SO HE QUIT MORGAN SWITCHED TO FULLTIME STUDY AND FINISHED HIS DEGREE THIS PAST SPRING THE RESULT A TRADING JOB WITH ANOTHER NEW YORK BANK A SIGNING BONUS THAT HELPED TO REPAY HIS SCHOOL DEBT PLUS A JUMP IN ANNUAL SALARY TO NEARLY 60000 FROM ABOUT 45000 HE SAYS THE INCREASE IS GREATER THAN WHAT HE MIGHT HAVE WON BY STAYING AT MORGAN IT WOULD HAVE BEEN MUCH HARDER FOR ME TO MAKE THAT SWITCH IF I KEPT GOING PART TIME MR HYLAND SAYS FOR SOME PEOPLE THE WEEKEND OR EXECUTIVE MBA MAY BE THE CHEAPEST AND SMARTEST CAREER OPTION IF YOU FIND YOURSELF IN SUCH A PROGRAM YOU PROBABLY PLAN TO REMAIN WITH YOUR COMPANY FOR A WHILE MOST STUDENTS IN EXECUTIVE MASTER'S PROGRAMS ARE PROMISING STARS SELECTED AND FULLY SPONSORED BY THEIR EMPLOYERS STUDENTS ALSO GET TIME OFF FOR CLASS TYPICALLY ONE DAY EVERY WEEK OR TWO FOR THE TWOYEAR DURATION OF MOST PROGRAMS YOU WILL PAY A STIFF PRICE FOR QUITTING YOUR JOB AFTER YOU COMPLETE A WEEKEND MBA HOWEVER MANY COMPANIES REQUIRE THAT YOU REPAY ALL OF THEIR COSTS IF YOU JUMP SHIP WITHIN A FEW YEARS OF GRADUATION AT SOME TOP SCHOOLS THAT TAB CAN RUN AS MUCH AS 60000 TO 80000 9311170105 931117 MARKETING & MEDIA TWO TV NETWORKS MOVE TO EXPAND FOREIGN HOLDINGS BY ELIZABETH JENSEN AND PAUL B CARROLL STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC AGREED TO ACQUIRE A 21 STAKE IN LUXEMBOURGBASED SCANDINAVIAN BROADCASTING SYSTEM SA ONE OF THE REGION'S FIRST COMMERCIAL BROADCASTERS FOR APPROXIMATELY 40 MILLION SEPARATELY MEXICO'S GRUPO AZTECA SA SAID IT IS IN TALKS WITH THREE US BROADCASTING COMPANIES ABOUT A VARIETY OF VENTURES INCLUDING THE POSSIBLE SALE OF A STAKE TO ONE OF THEM GENERAL ELECTRIC CO'S NBC IS ONE OF THE COMPANIES GRUPO AZTECA CHIEF EXECUTIVE RICARDO SALINAS PLIEGO CONFIRMED AN NBC SPOKESWOMAN WOULDN'T COMMENT MR SALINAS DECLINED TO IDENTIFY THE OTHER TWO US COMPANIES BUT DID SAY HE IS ALSO TALKING TO COMPANIES IN SPAIN VENEZUELA AND BRAZIL ABOUT POSSIBLE INVESTMENTS OR OTHER VENTURES BOTH NBC AND CAPITAL CITIES/ABC HAVE BEEN AGGRESSIVE IN RECENT MONTHS IN PURSUING MEDIA INVESTMENTS OVERSEAS AMONG CAPITAL CITIES' HOLDINGS ARE A 33 STAKE IN EUROSPORT A PANEUROPEAN SATELLITEDELIVERED SPORTS PROGRAM SERVICE AND A 50 STAKE IN THE GERMAN PRODUCTION AND DISTRIBUTION COMPANY TELEMUNCHEN NBC RECENTLY PURCHASED A CONTROLLING STAKE OF THE LONDONBASED PROGRAMMING SERVICE SUPER CHANNEL CAPITAL CITIES AGREED TO BUY A 16 STAKE IN SBS OR 16 MILLION SHARES FROM EXISTING SHAREHOLDERS FOR MORE THAN 25 MILLION THE COMPANY WILL ALSO ACQUIRE WARRANTS ENTITLING IT TO PURCHASE AN ADDITIONAL 500000 SHARES OR 5 OF SBS AT 25 A SHARE CAPITAL CITIES HAS THE RIGHT TO ACQUIRE ADDITIONAL SHARES ON THE OPEN MARKET TO BRING ITS TOTAL STAKE TO 25 OF SBS SBS OWNS FOUR TV STATIONS IN SCANDINAVIA AND PROVIDES PROGRAMMING AND SELLS ADVERTISING FOR KANAL DENMARK WHICH OPERATES FIVE TV STATIONS REACHING 55 OF DANISH VIEWING HOUSEHOLDS AND OWNS 30 OF SWEDISH PRODUCER AND BROADCASTER GE PROGRAM GROUP MR SALINAS SAID THAT IN ADDITION TO POSSIBLY SELLING A PIECE OF GRUPO AZTECA HE MIGHT GET INVOLVED IN SOME TYPE OF JOINT VENTURE WITH NBC OR ONE OF THE OTHER TWO US COMPANIES AT THE LEAST THEY MIGHT SUPPLY PROGRAMMING TO GRUPO AZTECA WHICH MR SALINAS FORMED TO BUY A PACKAGE OF STATEOWNED MEDIA COMPANIES FOR 640 MILLION IN JULY THE GROUP WHICH INCLUDES TWO NATIONAL TELEVISION NETWORKS WITH 168 AFFILIATE STATIONS A MOVIE THEATER CHAIN AND A PRODUCTION STUDIO IS TAKING ON MEXICO'S LONGDOMINANT PRIVATESECTOR BROADCASTER GRUPO TELEVISA SA MR SALINAS ADDED THAT HE IS IN TALKS WITH THREE US THEATER CHAINS INCLUDING GENERAL CINEMA CORP ABOUT THE POSSIBILITY OF THEIR INVESTING IN THE 240 MOVIETHEATER CHAIN 9311170104 931117 PROPELLER STRESS CITED IN CRASH THAT KILLED SOUTH DAKOTA OFFICIAL WASHINGTON THE SMALLPLANE CRASH THAT KILLED SOUTH DAKOTA GOV GEORGE MICKELSON IN APRIL WAS CAUSED BY PROPELLER STRESS THAT CAN'T EASILY BE DETECTED THE NATIONAL TRANSPORTATION SAFETY BOARD RULED STILL THE SAFETY BOARD RECOMMENDED THAT THE FEDERAL AVIATION ADMINISTRATION BROADEN ITS INSPECTION OF PROPELLERS MADE BEFORE 1984 BY CLOSELY HELD HARTZELL PROPELLER CO THE FAA AFTER THE APRIL 19 CRASH HAD ORDERED THE INSPECTION OF ALL HARTZELL PROPELLERS ON MITSUBISHI MU2B60 PLANES FOR CRACKS AND OTHER FLAWS BUT THE SAFETY BOARD IS ALSO SEEKING INSPECTION OF OTHER HARTZELL PROPELLERS THE GOVERNOR'S STATEOWNED MU2B60 CRASHED INTO A FARM SILO NEAR DUBUQUE IOWA ON APRIL 19 AFTER A PROPELLER BLADE BROKE OFF ALL EIGHT PEOPLE ABOARD DIED SIX WEEKS BEFORE THE IOWA CRASH THE NTSB HAD WARNED THE FAA THAT HARTZELL PROPELLERS ON MU2B60S COULD SEPARATE IN FLIGHT AND CAUSE A CATASTROPHIC ACCIDENT THE FAA DIDN'T IMMEDIATELY ISSUE A SPECIAL INSPECTION ORDER LEADING TO CRITICISM OF THE AGENCY BY SEN LARRY PRESSLER R SD AND OTHERS AFTER THE CRASH BUT THE NTSB ACKNOWLEDGED THAT NOBODY HAS FOUND A WAY TO DETECT PROBLEMS IN THE PROPELLER WITHOUT DISMANTLING PART OF THE AIRPLANE HARTZELL OFFICIALS COULDN'T BE REACHED FOR COMMENT LAST NIGHT 9311170103 931117 BUSINESS BRIEFS TURNER CORP'S TURNER CONSTRUCTION CO UNIT RECEIVED A CONTRACT TO BUILD A 145 MILLION OFFICE BUILDING FOR LEGO BUILDING CORP ENFIELD CONN DAW TECHNOLOGIES INC SIGNED A THREEYEAR CONTRACT WITH A MAJOR SEMICONDUCTOR MANUFACTURER TO SUPPLY CLEANROOM FACILITIES DAW EXPECTS THE CONTRACT TO PROVIDE REVENUE OF BETWEEN 4 MILLION AND 7 MILLION NEXT YEAR PARKOHIO INDUSTRIES INC REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE CLEVELAND STEEL CONTAINER CORP'S PLASTICCONTAINER FACTORY IN CLEVELAND THE COMPANY ALSO AGREED IN PRINCIPLE TO SELL THE ASSETS OF ITS STEELCONTAINER FACTORY IN PEOTONE ILL TO CLEVELAND STEEL CONTAINER TERMS WEREN'T DISCLOSED STERIS CORP SIGNED A LETTER OF INTENT TO ACQUIRE MICRODIMENSIONS INC MENTOR OHIO A CLOSELY HELD ENGINEERING AND MANUFACTURING COMPANY TERMS WEREN'T DISCLOSED GROUP W RADIO SIGNED AN AGREEMENT TO PURCHASE STATIONS KKHIAM & FM IN SAN FRANCISCO FROM BUCKLEY BROADCASTING CORP TERMS WEREN'T DISCLOSED GROUP W RADIO IS A UNIT OF WESTINGHOUSE BROADCASTING CO WHICH IS A WHOLLY OWNED SUBSIDIARY OF WESTINGHOUSE ELECTRIC CORP 9311170102 931117 TECHNOLOGY GRACE UNIT'S MEMO RAISES IRE OF FDA SUGGESTS DIALYSISEQUIPMENT SHORTAGE BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION WARNED A WR GRACE & CO UNIT TO BACK OFF FROM WHAT THE FDA CALLED SCARE TACTICS SUGGESTING POSSIBLE SHORTAGES OF KIDNEYDIALYSIS EQUIPMENT AS THE COMPANY BATTLES THE AGENCY OVER THE RELIABILITY OF ITS MEDICAL DEVICES LAST SPRING THE FDA BANNED THE UNIT NATIONAL MEDICAL CARE FROM IMPORTING EQUIPMENT USED AT ITS DIALYSIS CENTERS THE BAN WHICH WASN'T DISCLOSED BY THE COMPANY UNTIL AUGUST CITED FAULTY QUALITYCONTROL PRACTICES AT GRACE MANUFACTURING PLANTS IN IRELAND AND MEXICO THIS WEEK THE FDA ADMONISHED NATIONAL MEDICAL CARE OFFICIALS FOR SENDING A MEMORANDUM TO ITS DIALYSIS CENTERS WHICH COMPRISE 15 OF THE US TREATMENT SITES THAT RAISED THE PROSPECT OF REDUCING DIALYSIS TREATMENTS FOR SOME PATIENTS TO TWO DAYS A WEEK FROM THREE BECAUSE THE BAN COULD CAUSE POSSIBLE SHORTAGES OF DIALYSIS SUPPLIES IN A LETTER TO THE UNIT'S DIALYSIS CENTERS THE FDA SAID THE MEMORANDUM NEEDLESSLY RAISES ALARM AND IS INCONSISTENT WITH SEVERAL COMMUNICATIONS THE FDA HAS HAD FROM NMC ON THIS ISSUE FEWER DIALYSIS TREATMENTS FOR KIDNEY PATIENTS COULD CAUSE BLOODPRESSURE PROBLEMS OR MAKE HEART FAILURE MORE DIFFICULT TO CONTROL SAID DR BRUCE BURLINGTON DIRECTOR OF THE CENTER FOR DEVICES AND RADIOLOGICAL HEALTH FOR THE FDA HE ADDED IF YOU WERE A PATIENT THE MEMO WAS A SCARY LETTER THE FDA REQUESTED THAT THE COMPANY POST THE AGENCY LETTER DATED MONDAY IN A CONSPICUOUS PLACE AT ITS DIALYSIS CENTERS AND MAKE A COPY AVAILABLE TO ALL DIALYSIS PATIENTS GRACE OFFICIALS SAID THE FDA WAS OVERREACTING TO ITS EFFORTS TO BE PRUDENT ABOUT SUPPLIES AND CHARACTERIZED ITS INTERNAL MEMO AS PART OF THAT PLANNING APPARENTLY WE AT NMC TAKE A CONSERVATIVE APPROACH AS TO WHAT CONSTITUTES A DANGEROUSLY LOW SUPPLY THAT MAY PUT DIALYSIS PATIENTS AT RISK A COMPANY SPOKESMAN SAID IN A STATEMENT HE ADDED THAT THE FDA GAVE THE COMPANY PERMISSION TO IMPORT A LIMITED NUMBER OF THE DIALYSIS PRODUCTS THROUGH NOVEMBER UNDER AN URGENT NEED EXEMPTION AND HE SAID THAT NATIONAL MEDICAL CARE HAS ESTABLISHED A COMPREHENSIVE ACTION PLAN TO RESOLVE THE CONCERNS OF THE FDA AND LIFT THE IMPORT BAN AS SOON AS POSSIBLE DR BURLINGTON THAT SAID THE FDA CONTINUES TO MONITOR DIALYSIS EQUIPMENT GOING TO THE CENTERS AND THAT THE AGENCY IS WORKING WITH OTHER SOURCES OF THE EQUIPMENT TO ENSURE THAT A SHORTAGE DOESN'T OCCUR BOCA RATON FLABASED GRACE WHICH HAS 400 CLINICS IN THE US WAS CRITICIZED BY STOCK ANALYSTS IN AUGUST FOR NOT DISCLOSING FOR WEEKS THE GOVERNMENT IMPORT BAN ON ITS DIALYSIS PRODUCTS THE COMPANY'S STOCK FELL ON THE DISCLOSURE GRACE SHARES CLOSED YESTERDAY AT 37625 UP 125 CENTS THE COMPANY'S HEALTHCARE OPERATING NET INCOME ROSE 36 IN THE FIRST HALF OF THIS YEAR TO 63 MILLION COMPARED WITH THE FIRST SIX MONTHS OF 1992 9311170101 931117 RETIREES SHARE IN COMPANY FORTUNES AS CORPORATIONS PUT STOCK IN PENSIONS BY LESLIE SCISM AND ALBERT R KARR STAFF REPORTERS OF THE WALL STREET JOURNAL FOR MANY RETIREES TILL DEATH DO US PART APPLIES TO MORE THAN MARRIAGE THESE DAYS IT ALSO APPLIES TO THEIR EMPLOYER THAT'S BECAUSE BIG CORPORATE EMPLOYERS SEEM INCREASINGLY INCLINED TO STUFF SOME OF THEIR OWN STOCK INTO THE COMPANY PENSION PLAN FOR BETTER OR WORSE GENERAL MOTORS CORP CAPTIVATED INVESTORS WITH THIS WEEK'S NEWS THAT IT AIMS TO CONTRIBUTE 185 MILLION CLASS E SHARES WITH A CURRENT VALUE OF 537 BILLION TO A FUND FOR HOURLY WORKERS EFFECTIVELY LINKING PART OF THEIR RETIREMENT BENEFITS TO THE FORTUNES OF GM'S ELECTRONIC DATA SYSTEMS INC UNIT GM COMMON SHARES ROSE 125 TO A 52WEEK HIGH OF 5275 ITS CLASS E SHARES CLOSED AT 29 DOWN 2 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WHILE GM'S PLANNED CONTRIBUTION IS OF STAGGERING PROPORTIONS BIG ENOUGH TO REQUIRE REGULATORY APPROVAL THE AUTO MAKER IS BY NO MEANS ALONE PPG INDUSTRIES INC SAID MONDAY THAT IT PLANS TO CONTRIBUTE 15 MILLION PPG SHARES TO ITS PENSION FUND TENNECO INC ANNOUNCED A VARIATION IT IS GIVING ITS PENSION PLANS 32 MILLION SHARES IT OWNS IN CUMMINS ENGINE CO A JOINTVENTURE PARTNER IN JANUARY TENNECO CONTRIBUTED 225000 OF ITS OWN SHARES TO A COMPANYSPONSORED PLAN IT WAS A WAY TO ACHIEVE TWO POSITIVE THINGS A TENNECO SPOKESWOMAN SAYS TO BRING PENSION FUNDING CLOSER TO WHERE IT NEEDS TO BE AND TO DO SO WITHOUT USING CASH WHILE MANY EXPERTS SAY IT'S TOO SOON TO CALL IT A FULLBLOWN TREND THERE'S NO DOUBT MANY COMPANIES ARE GOING THIS ROUTE IT'S STILL PRETTY UNUSUAL THESE DAYS SAYS STEPHEN NESBITT A SENIOR VICE PRESIDENT WITH WILSHIRE ASSOCIATES WHICH HAS A LARGE PENSION CONSULTING BUSINESS BUT A STEADY NUMBER PARTICULARLY THOSE IN THE STEEL AIRLINE AND AUTO BUSINESS WHERE PENSION PLANS ARE BIG AND FINANCIAL WOES LONGSTANDING ARE SIGNING OVER STOCK IT'S IN THOSE INDUSTRIES THAT YOU HAVE SEEN AND WILL CONTINUE TO SEE CONTRIBUTIONS IN THE FORM OF CORPORATE STOCK UP TO THE MAXIMUMS PERMISSIBLE MR NESBITT SAYS THE USUAL LIMIT IS 10 OF PLAN ASSETS WITHOUT REGULATORY APPROVAL AND MORE CORPORATIONS COULD SOON BE JOINING IN THANKS TO SUSTAINED LOW INTEREST RATES THE SECURITIES AND EXCHANGE COMMISSION IS PRESSURING COMPANIES TO REEVALUATE THEIR OBLIGATIONS TO PENSIONERS AS THE ARTICLE BELOW EXPLAINS THE RESULT IS BLOATING PENSION LIABILITIES SAYS JOHN WOYKE A PRINCIPAL IN TOWERS PERRIN ANOTHER PENSIONCONSULTING BUSINESS THIS COULD PROMPT MORE STOCK CONTRIBUTIONS HE SAYS UNDER THE EMPLOYMENT RETIREMENT INCOME SECURITY ACT COMPANIES ARE ALLOWED TO CONTRIBUTE THEIR OWN SHARES TO A PENSION PLAN SO LONG AS WHEN THEY DO THE SHARES DON'T EXCEED 10 OF PLAN ASSETS SAYS IVAN STRASFELD DIRECTOR OF EXEMPTIONS AND TERMINATIONS FOR THE PENSION AND WELFARE BENEFITS ADMINISTRATION OTHER STRICTURES EVEN AFTER THE CONTRIBUTION AT LEAST 50 OF THE COMPANY IN QUESTION MUST BE HELD BY PERSONS INDEPENDENT OF THE COMPANY AND AT MOST 25 OF ANY PARTICULAR STOCK ISSUE CAN BE HELD BY A CORPORATE PENSION PLAN GM'S PROPOSAL TO BEEF UP ITS 40BILLIONINASSETS PLAN WOULD APPEAR TO RUN FAR AFIELD OF THESE RULES BECAUSE THE PLAN WOULD WIND UP HOLDING 38 OF THE EDS SHARES AN EXEMPTION WOULD BE REQUIRED FROM THE LABOR DEPARTMENT TO MAKE IT LEGAL MR STRASFELD SAYS EARLIER THIS WEEK A LABOR AGENCY OFFICIAL HAILED THE GM PLAN AS A BOLD MOVE BUT SAID IT WOULD BE CAREFULLY REVIEWED UNDER A 1987 ERISA AMENDMENT COMPANIES THAT ALREADY MADE CONTRIBUTIONS EXCEEDING THE LIMITS WERE GIVEN UNTIL JAN 1 1993 TO COMPLY LATELY EMPLOYERS HAVE BEEN COMING TO THE AGENCY SEEKING EXEMPTIONS CARGILL INC WAS GRANTED AN EXEMPTION FROM THE 50 RULE ON OCT 29 AND PENN CENTRAL CO AND FIRST CITIZENS BANK & TRUST CO RALEIGH NC ALSO RECEIVED EXEMPTIONS MR STRASFELD SAYS HE SAYS A LOT OF COMPANIES MAKE CONTRIBUTIONS THAT DON'T INVOLVE WAIVERS EXACT FIGURES WEREN'T AVAILABLE COMPANIES THAT CONTRIBUTE STOCK TEND TO BE HARD PRESSED THEY HAVE UNDERFUNDED PLANS AND THEY ARE NOT CASH RICH IN THEIR OPERATING BUSINESSES MR NESBITT SAYS FOR SOME COMPANIES THE STOCK CONTRIBUTIONS TURN OUT TO BE SHREWD MOVES TAKE CHRYSLER CORP IT CONTRIBUTED 30 MILLION SHARES TO ITS PENSION PLANS IN 1991 WHEN THE STOCK TRADED AT ABOUT 10 YESTERDAY CHRYSLER CLOSED AT 55625 THAT'S A PRETTY GOOD INVESTMENT SAYS THOMAS CAPO CHRYSLER'S TREASURER AND VICE PRESIDENT HE SAYS THE COMPANY ALSO BENEFITS FROM THE CONTRIBUTION THE BEAUTY OF CONTRIBUTING STOCK TO YOUR PENSION FUND IS THAT THE ACT OF CONTRIBUTING INCREASES THE EQUITY BASE OF THE COMPANY AND IF IN FACT THE STOCK APPRECIATES IN VALUE THE BENEFIT GOES TO THE PENSION FUND BUT SOME PENSION PLANS CLEARLY DON'T REAP SUCH STOCK APPRECIATION ESPECIALLY WHEN THEY HOLD SHARES IN STRUGGLING COMPANIES WESTINGHOUSE ELECTRIC CORP CONTRIBUTED SOME 22 MILLION SHARES IN OCTOBER 1991 WHEN THE STOCK TRADED AT ABOUT 1650 THE PRICE YESTERDAY WAS 13625 DOWN 375 CENTS ON THE DAY THE PLAN HAS SOLD SOME SHARES SINCE THE DONATION AS MOST PLANS ARE ENTITLED TO WITH EMPLOYERSTOCK CONTRIBUTION BUT THE EXACT NUMBER WASN'T AVAILABLE LATE YESTERDAY JEROME YORK CHIEF FINANCIAL OFFICER OF INTERNATIONAL BUSINESS MACHINES CORP IS HOPING IBM'S RECENT DECISION TO PUT AS MANY AS 15 MILLION SHARES INTO THE COMPUTER MAKER'S PENSION FUNDS WILL PROVE AS SHREWD AS THAT OF CHRYSLER WHERE HE FORMERLY WAS CFO SO FAR THE IBM DECISION LOOKS SMART THE FIRST 58 MILLION SHARES WERE DONATED SEPT 9 WHEN IBM STOCK TRADED AT 44375 YESTERDAY IBM CLOSED AT 5275 UP 175 WHILE PENSION CONSULTANTS SUCH AS WILSHIRE'S MR NESBITT CONSIDER BIG STOCK DISTRIBUTIONS TO PENSION PLANS HARMFUL TO EXISTING SHAREHOLDERS MR YORK INSISTS THAT THE 15 MILLION SHARES TO BE DISTRIBUTED TO THE IBM PLANS BY THE END OF 1994 ARE NOT ENOUGH TO DILUTE HE NOTES THAT THE AMOUNT ALSO IS TOO SMALL TO HAVE WARRANTED A TRIP TO THE PUBLIC EQUITY MARKET SUCH A TRIP WOULD HAVE BEEN TIMECONSUMING HE SAYS AND IT WOULD HAVE EATEN UP MILLIONS OF COMPANY DOLLARS IN INVESTMENT BANKING FEES IBM HAS ABOUT 600 MILLION SHARES OUTSTANDING NOT EVERYONE IS ENTHUSIASTIC ABOUT STOCK CONTRIBUTIONS MYRA DRUCKER ASSISTANT TREASURER AT XEROX CORP SAYS XEROX GUIDELINES PROHIBIT THE COMPANY FROM MAKING EMPLOYERSTOCK DONATIONS TO ITS PENSION FUNDS WE FEEL THERE IS ENOUGH EXPOSURE ON THE PART OF THE EMPLOYEES TO THE FORTUNES OF XEROX SHE SAYS AND THERE OUGHT NOT TO BE ADDITIONAL EXPOSURE THROUGH THE PENSION FUND MOREOVER IF XEROX WERE TO CONTRIBUTE SOME STOCK AND THEN FALL UPON HARD TIMES THE STOCK IS PROBABLY NOT GOING TO BE DOING WELL SO IT MIGHT FORCE US TO INCREASE OUR CONTRIBUTIONS IN THE FUTURE SOME COMPANIES TRY TO CONTRIBUTE MORE THAN JUST STOCK LAST YEAR THE PENSION BENEFIT GUARANTY CORP FILED A BRIEF TO THE SUPREME COURT IN AN INTERNAL REVENUE SERVICE CASE INVOLVING CONTRIBUTION OF REAL ESTATE TO A PENSION FUND THE PBGC WARNED OF THE POTENTIAL FOR ABUSE IF NONCASH CONTRIBUTIONS ARE ALLOWED TO SATISFY A PENSIONPLAN SPONSOR'S FUNDING OBLIGATIONS THE AGENCY SAYS SUCH CONTRIBUTIONS MUST BE SCRUTINIZED TO ENSURE THAT SPONSORS DON'T INFLATE THE VALUE OF CONTRIBUTIONS 9311170100 931117 BUSINESS BRIEF GEMSTAR DEVELOPMENT CORP CONCERN FILES ANTITRUST SUIT AGAINST STARSIGHT TELECAST CLOSELY HELD GEMSTAR DEVELOPMENT CORP PASADENA CALIF WHICH MARKETS TELEVISIONCHANNEL PROGRAMMING SERVICES SUED COMPETITOR STARSIGHT TELECAST INC ALLEGING ANTITRUST VIOLATIONS FRAUD AND MISUSE OF PATENT PROTECTION THE SUIT FILED IN FEDERAL COURT IN LOS ANGELES FOLLOWS LITIGATION LAST MONTH BY STARSIGHT IN FEDERAL COURT IN SAN FRANCISCO ALLEGING PATENT INFRINGEMENT BY GEMSTAR STARSIGHT STOCK SKIDDED 14 OR 3 TO 1850 IN NASDAQ STOCK MARKET TRADING STARSIGHT IS BASED IN FREMONT CALIF THE COMPANIES' DISAGREEMENT CENTERS ON TECHNOLOGY RELATED TO PROGRAMMING VIDEOCASSETTE MACHINES TO WORK WITH CABLETV BOXES OR DECODERS GEMSTAR'S SUIT ALLEGES THAT STARSIGHT IN SELLING TECHNOLOGY RIGHTS TO THIRD PARTIES WAS REQUIRING THAT THOSE THIRD PARTIES ALSO ACQUIRE RIGHTS TO OTHER PATENTS EFFECTIVELY BLOCKING GEMSTAR'S BUSINESS MARTIN HENKEL STARSIGHT'S CHIEF FINANCIAL OFFICER SAID THE SUIT WAS NOT UNEXPECTED AND APPARENTLY IS IN RESPONSE TO STARSIGHT'S SUIT AGAINST GEMSTAR 9311170099 931117 MARKETING & MEDIA PARAMOUNT REBUTS CHARGES IN LAWSUIT EXPRODUCER FILED BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD PARAMOUNT PICTURES TOOK ISSUE WITH A LAWSUIT FILED AGAINST IT BY DAVID KIRKPATRICK ITS FORMER PRESIDENT OF PRODUCTION WHO ALLEGED THAT A TIFF WITH A TOP EXECUTIVE LED TO HIS UNJUST OUSTER AS AN INDEPENDENT PRODUCER IN THE COMPLAINT FILED MONDAY IN STATE COURT IN LOS ANGELES MR KIRKPATRICK ALLEGED THAT STANLEY JAFFE WHO WAS A MOVIE PRODUCER AT PARAMOUNT PICTURES BEFORE BEING NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF ITS PARENT PARAMOUNT COMMUNICATIONS INC DEVELOPED AN IRREVERSIBLE HOSTILITY TOWARD HIM DURING THE PRODUCTION OF SCHOOL TIES THAT WAS THE LAST FILM MR JAFFE COPRODUCED BEFORE BEING NAMED A PARAMOUNT EXECUTIVE PARAMOUNT YESTERDAY CALLED MR KIRKPATRICK'S LEGAL ATTACK ON MEMBERS OF PARAMOUNT'S MANAGEMENT COMPLETELY BASELESS AND SAID THE SUIT IS TOTALLY WITHOUT MERIT THE COMPANY SAID IT PLANS TO FILE A CROSSCOMPLAINT MR KIRKPATRICK CHARGED IN HIS SUIT THAT MR JAFFE GREW TO DISLIKE HIM WHEN THEY BICKERED AFTER PRODUCTION COSTS ON SCHOOL TIES ROSE ABOVE AN AGREEDUPON FIGURE IN 1991 AFTER MR JAFFE WAS NAMED CHIEF OPERATING OFFICER MR KIRKPATRICK WAS TERMINATED AS PRESIDENT OF PRODUCTION AND CLAIMS HE WAS FORCED UNDER DURESS TO ACCEPT AN INDEPENDENT PRODUCTION DEAL WITH THE STUDIO PARAMOUNT YESTERDAY CALLED THAT CLAIM PREPOSTEROUS MR KIRKPATRICK ALLEGED THAT MR JAFFE ORDERED A STRICT BOYCOTT OF ANY FILM PROJECT THAT THE PRODUCER TRIED TO GET PARAMOUNT TO MAKE MR KIRKPATRICK SAID HE WAS DISMISSED AS AN INDEPENDENT PRODUCER IN EARLY OCTOBER PARAMOUNT HOWEVER SAYS IT HASN'T TERMINATED HIS CONTRACT THE COMPANY SAYS IT BEGAN DISCUSSIONS TO TERMINATE THE CONTRACT BUT WITHDREW FROM THE NEGOTIATIONS DUE TO HIS GROSSLY INFLATED DEMANDS MR KIRKPATRICK CHARGED THAT PARAMOUNT OWES HIM VARIOUS BENEFITS INCLUDING VALUABLE RIGHTS TO ACQUIRE STOCK THE SUIT SEEKS UNSPECIFIED DAMAGES IRONICALLY PARAMOUNT SUED MR KIRKPATRICK WHEN HE FIRST LEFT THE STUDIO YEARS AGO FOR A JOB AT AN INDEPENDENT PRODUCTION COMPANY AND LATER AFTER HE LEFT A TOP POST AT WALT DISNEY CO'S FILM OPERATIONS TO REJOIN PARAMOUNT DISNEY CHARGED THAT MR KIRKPATRICK TOOK ANOTHER EXECUTIVE AND A FILM PROJECT WITH HIM IN VIOLATION OF A CONTRACT BOTH SUITS WERE SETTLED 9311170098 931117 BUSINESS BRIEF PROCTER & GAMBLE CO PRICE OF CAMAY TO BE CUT SOAP BAR TO BE REFORMULATED PROCTER & GAMBLE CO ATTEMPTING TO REVIVE A FLAGGING SOAP BRAND SAID IT IS EFFECTIVELY CUTTING THE PRICE OF CAMAY BY SELLING IT AT THE SAME PRICE IN BUNDLES OF THREE BARS RATHER THAN TWO A SPOKESWOMAN FOR THE CINCINNATIBASED CONSUMER PRODUCTS CONCERN SAID THAT IN ORDER TO CUT PRODUCTION COSTS P&G IS REFORMULATING CAMAY BY ELIMINATING SOME EXPENSIVE POLYMERS AND REBALANCING FORMULAS THE COMPANY ALSO IS REDUCING THE NUMBER OF CAMAY VARIETIES TO TWO FROM THREE BY ELIMINATING CAMAY INNOCENT A WHITE BAR THAT LEAVES PINK CAMAY CLASSIC AND PEACH CAMAY FLAIR THE REPOSITIONED CAMAY SHOULD REACH STORE SHELVES LATE NEXT MONTH P&G HAS SLASHED PRICES ON A NUMBER OF PRODUCTS IN RECENT MONTHS INCLUDING LUVS AND PAMPERS DISPOSABLE DIAPERS TIDE AND CHEER LIQUID LAUNDRY DETERGENTS IVORY DISHWASHING LIQUID DOWNY FABRIC SOFTENER AND CHARMIN TOILET TISSUE THE P&G SPOKESWOMAN SAID CAMAY HAS BEEN STRUGGLING THE PAST FEW YEARS IN PART BECAUSE ITS PRICE HAD CREPT UP AND CONSUMERS DIDN'T WANT TO PAY A PREMIUM FOR IT CAMAY NOW WILL ASSUME A MIDPRICE LEVEL BETWEEN THE COMPANY'S RECENTLY INTRODUCED PREMIUMPRICE OLAY BATH BAR AND ITS LOWPRICE SIGNATURE BRAND IVORY 9311170096 931117 BUSINESS BRIEF TENNECO INC SPERRY MARINE UNIT IS SOLD TO INVESTORS LED BY LEHMAN TENNECO INC SAID IT SOLD ITS SPERRY MARINE INC UNIT TO A GROUP OF INVESTORS LED BY JF LEHMAN & CO A NEW YORK INVESTMENT BANK TERMS WEREN'T DISCLOSED SPERRY A CHARLOTTESVILLE VA MAKER OF MARINE ELECTRONIC AND COMMUNICATIONS EQUIPMENT HAS ANNUAL REVENUE OF ABOUT 120 MILLION TENNECO IS A HOUSTON HOLDING COMPANY WITH NATURALGAS PIPELINE FARMEQUIPMENT SHIPBUILDING AND PUBLISHING INTERESTS JF LEHMAN & CO RUN BY JOHN F LEHMAN FORMER SECRETARY OF THE NAVY DURING THE REAGAN ADMINISTRATION OWNS A MAJORITY INTEREST IN THE COMPANY DR LEHMAN WILL SERVE AS SPERRY'S CHAIRMAN SEVERAL INSTITUTIONAL INVESTORS HOLD MINORITY INTERESTS IN SPERRY INCLUDING BANQUE PARIBAS OF PARIS MASSACHUSETTS MUTUAL LIFE INSURANCE CO AND SEMBAWANG SHIPYARD LTD OF SINGAPORE 9311170094 931117 BUSINESS BRIEF BIOCONTROL TECHNOLOGY INC WORLDWIDE RIGHTS OBTAINED TO ANTICRUSTACEAN PAINT BIOCONTROL TECHNOLOGY INC SAID IT SIGNED A PATENT AND TRADEMARK LICENSE AGREEMENT WITH PITTSBURGH INVENTOR KENNETH J FISCHER GIVING THE COMPANY EXCLUSIVE WORLDWIDE RIGHTS TO MANUFACTURE AND MARKET A PEPPERBASED PAINT THAT REPELS BARNACLES AND ZEBRA MUSSELS THE CRUSTACEANS OBSTRUCT FLOW IN WATERWAYS AND WATER SUPPLIES AND DAMAGE WATERWAYS AND VESSELS PASSING THROUGH INFESTED AREAS THE COMPANY SAID MR FISCHER WHO RECEIVED A PATENT FOR THE PAINT IN JULY WILL RECEIVE A ROYALTY ON SALES OF THE PRODUCT BARNACLE BAN BIOCONTROL TECHNOLOGY SAID IT EXPECTS THE MARKET TO BE QUITE LUCRATIVE THE INDIANA PA COMPANY DEVELOPS AND MAKES BIOMEDICAL DEVICES AND MEDICAL AND BIOREMEDIATION PRODUCTS 9311170093 931117 BUSINESS BRIEF NATIONAL MEDICAL SETTLES ABOUT HALF OF ITS LAWSUITS BY PAYING 15 MILLION SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SAID IT PAID 15 MILLION TO SETTLE NEARLY HALF OF THE MEDICAL MALPRACTICE AND CONSPIRACY LAWSUITS PENDING AGAINST ITS PSYCHIATRIC HOSPITALS THE SETTLEMENTS SOME OF WHICH STILL REQUIRE COURT APPROVAL ARE WITH 66 PLAINTIFFS WHO HAD SUED THE HOSPITAL COMPANY IN STATE AND FEDERAL COURTS IN FORT WORTH TEXAS ALL OF THE PLAINTIFFS WERE REPRESENTED BY ROBERT ANDREWS A FORT WORTH LAWYER WHO SPECIALIZES IN HEALTHCARE LAW THE SUITS GENERALLY ACCUSED NATIONAL MEDICAL OF MALPRACTICE AND FRAUD AND CONTENDED THAT PATIENTS WERE HELD IN THE HOSPITAL AGAINST THEIR WILL MR ANDREWS SAID THE SUITS COVERING CONDUCT BETWEEN 1984 AND 1992 ALSO CHARGED A CORPORATEWIDE CONSPIRACY TO ADMIT PATIENTS WITHOUT REGARD TO MEDICAL NECESSITY THESE SETTLEMENTS REPRESENT OUR ACKNOWLEDGMENT THAT WE HAD TO RESOLVE THESE CASES BEFORE WE COULD REGAIN THE PUBLIC'S TRUST SAID CHRISTI R SULZBACH THE COMPANY'S SENIOR VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL THE SETTLEMENTS WERE REACHED DESPITE NATIONAL MEDICAL'S RECENT SUCCESS IN WINNING THREE SIMILAR CASES THAT WERE TRIED IN TEXAS AND CALIFORNIA MS SULZBACH SAID MR ANDREWS'S REPRESENTATION OF SO MANY PLAINTIFFS WAS A UNIQUE OPPORTUNITY OF THE ROUGHLY 70 REMAINING LAWSUITS WITH SIMILAR ALLEGATIONS 54 ARE IN TEXAS NATIONAL MEDICAL SAID THEY ARE BEING REVIEWED ON A CASEBYCASE BASIS AND THERE MAY BE SETTLEMENTS THAT OCCUR INDIVIDUALLY MR ANDREWS SAID ACTIVE NEGOTIATIONS BEGAN ABOUT THREE MONTHS AGO I AM AWARE OF CHANGES THAT THE COMPANY HAS MADE AND I'M COMFORTABLE THAT NEW MANAGEMENT WANTS TO PUT ITS PROBLEMS BEHIND IT HE SAID ATTORNEYS FROM THE LAW FIRM SHANNON GRACEY RATLIFF & MILLER ACTED AS COCOUNSEL ON ABOUT TWOTHIRDS OF THE CASES THE SETTLEMENT COST IS INCLUDED IN A 250MILLION RESERVE FOR UNUSUAL LITIGATION THAT NATIONAL MEDICAL SET UP LAST MONTH THE PACT IS THE LATEST IN NATIONAL MEDICAL'S CAMPAIGN TO RESOLVE ITS LEGAL PROBLEMS SO IT CAN CONCENTRATE ON ITS ACUTECARE HOSPITAL OPERATIONS THE COMPANY RECENTLY AGREED TO A 125 MILLION SETTLEMENT OF TWO SUITS BY SEVERAL INSURANCE COMPANIES THAT ALLEGED THE COMPANY FILED FRAUDULENT PSYCHIATRIC CLAIMS PRELIMINARY TALKS ARE CONTINUING WITH THE US JUSTICE DEPARTMENT WHICH IS INVESTIGATING THE COMPANY FOR POSSIBLE CRIMINAL MISCONDUCT NATIONAL MEDICAL SHARES CLOSED YESTERDAY AT 1150 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE LATEST PACT WAS ANNOUNCED BEFORE TRADING BEGAN 9311170092 931117 INTERNATIONAL BRIEF TELSTRA CORP TELECOMMUNICATIONS WORK PLANNED FOR AUSTRALIAN LINES TELSTRA OTC AUSTRALIA SAID IT PLANS TO INVEST ANOTHER US22 BILLION TO UPGRADE AUSTRALIA'S DOMESTIC TELECOMMUNICATIONS NETWORK THE INTERNATIONAL ARM OF TELSTRA CORP OF SYDNEY A MAJOR TELECOMMUNICATIONS CONCERN IN THE ASIAPACIFIC REGION SAID THE MODERNIZATION PROGRAM WILL OCCUR OVER THE NEXT THREE YEARS IN METROPOLITAN AREAS AND THE NEXT FIVE YEARS IN RURAL AREAS ALCATEL AND ERICSSON WILL PROVIDE DIGITAL TECHNOLOGY REQUIRED FOR TELSTRA'S CORE RESIDENTIAL AND MAJOR BUSINESS MARKET NORTEL A UNIT OF NORTHERN TELECOM LTD WILL PROVIDE TECHNOLOGY FOR CERTAIN BUSINESS PRODUCTS AND SIEMENS WILL BE THE SINGLE SUPPLIER OF SOME TRANSMISSION EQUIPMENT 9311170091 931117 FIRST FINANCIAL TO BUY FIRST CLYDE HAMILTON OHIO FIRST FINANCIAL BANCORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE FIRST CLYDE BANC CORP OF CLYDE OHIO IN A STOCK SWAP VALUED AT 111 MILLION THE ACQUISITION SCHEDULED TO BE COMPLETE IN THE SECOND QUARTER OF NEXT YEAR MARKS FIRST FINANCIAL'S ENTRY INTO SANDUSKY COUNTY OHIO FIRST FINANCIAL IS A BANK HOLDING COMPANY WITH 17 BILLION IN ASSETS FIRST CLYDE HAS ASSETS OF 67 MILLION 9311170089 931117 RETAILING RETAIL OUTLOOK FOR HOLIDAYS VARIES BY REGION BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL THE 1993 HOLIDAY SHOPPING SEASON WILL BE EITHER A FESTIVE TIME OR A TIME TO LONG FOR CHRISTMASES PAST DEPENDING ON WHERE A PERSON LIVES IN THE ROCKY MOUNTAIN REGION AND THE MIDWEST THE RETAILING OUTLOOK IS MERRY BUT IN CALIFORNIA AND THE PACIFIC NORTHWEST THERE MAY BE MORE PRAGMATIC GIFTS THAN GLITTERY ONES UNDER THE TREE THIS CHRISTMAS WILL BE A REALLY SAD ONE FOR EVERYONE HERE SAYS JOHN MARIN MANAGER OF A KENTUCKY FRIED CHICKEN RESTAURANT IN LOS ANGELES THE ECONOMY IS SO TOUGH ON US RIGHT NOW MR MARIN SAYS HE PLANS TO SPEND LESS THIS YEAR AND TO FORGO SUCH ITEMS AS TOYS IN FAVOR OF CLOTHING ISAAC LAGNADO PRESIDENT OF TACTICAL RETAIL SOLUTIONS A NEW YORK CONSULTING GROUP EXPECTS BOTH CONSUMERS AND RETAILERS TO BE CAUTIOUS THIS YEAR THE LARGER ECONOMY IS FIRMING BUT THAT HASN'T FILTERED DOWN TO THE CONSUMER HE SAYS RETAILERS CERTAINLY DON'T HOPE TO MATCH LAST YEAR'S SAMESTORE SALES GAIN OF 8 WHEN CONSUMERS SWEPT UP IN POSTELECTION EUPHORIA WENT ON SHOPPING SPREES HOWEVER MANY SHOPPERS STILL PLAN TO SPEND 5 MORE THIS SEASON OR AN AVERAGE OF 646 ACCORDING TO A RECENT DELOITTE & TOUCHE SURVEY AND RETAIL EXPERTS AND ANALYSTS EXPECT COMPARABLESTORE SALES TO RISE 3 TO 55 A GOOD THOUGH NOT PHENOMENAL GAIN SAYS HARVEY D BRAUN COCHAIRMAN OF DELOITTE & TOUCHE'S RETAIL GROUP INFLATION FOR RETAILERS IS RUNNING BELOW 2 ACCORDING TO ANALYSTS THE WEALTH WON'T BE EVENLY DISTRIBUTED TACTICAL RETAIL SOLUTIONS PREDICTS THAT THE PACIFIC STATES WHERE THE ECONOMY IS STILL SOFT WILL RECORD ONLY A 26 SAMESTORE SALES RISE THIS DECEMBER WITH SOME CITIES NOTABLY SEATTLE AND ANAHEIM CALIF SEEING SALES DECLINES SUCH RETAILERS AS CARTER HAWLEY HALE INC WHOSE STORES ARE LOCATED MOSTLY IN CALIFORNIA FORECAST AN UNCERTAIN CHRISTMAS AND DEPRESSED FULLYEAR RESULTS AND IN SEATTLE A SPOKESWOMAN FOR NORDSTROM INC SAYS THE DEPARTMENTSTORE OPERATOR EXPECTS SALES TO INCREASE IN PROBABLY EVERY AREA EXCEPT LOS ANGELES AS FOR THE EAST COAST TACTICAL RETAIL SOLUTIONS SEES THE MIDDLEATLANTIC STATES RECORDING A PALTRY 35 COMPARABLESTORE SALES GAIN THIS DECEMBER AND ALL OF THE NORTHEAST WITH A SLIGHTLY BETTER 41 RISE A GREAT DEAL OF CONSUMER UNCERTAINTY ESPECIALLY IN THE NORTHEAST IS KEEPING FEDERATED DEPARTMENT STORES INC FROM MAKING JOLLY PROJECTIONS WE EXPECT SOME IMPROVEMENT OVER LAST YEAR BUT NOT A WHOLE LOT A SPOKESWOMAN SAYS OTHER AREAS THOUGH ARE EXPECTED TO BRING OUT THE EGGNOG IN PREPARATION FOR STRONGER GROWTH PARTICULARLY THE LOWER ROCKY MOUNTAIN STATES WHERE PEOPLE ARE SETTLING AFTER LEAVING CALIFORNIA ACCORDING TO A STUDY BY MANAGEMENT HORIZONS A DIVISION OF PRICE WATERHOUSE TACTICAL RETAIL SOLUTIONS ANTICIPATES THAT THE MOUNTAIN STATES WILL POST A 9 SAMESTORE SALES GAIN THIS YEAR WITH RETAILERS IN PHOENIX AND DENVER REGISTERING DOUBLEDIGIT GROWTH THE SOUTHEAST ALSO SHOULD SEE SOLID RETAIL GROWTH REFLECTING A STRONG MANUFACTURING BASE AND IN FLORIDA A LINGERING BOOST FROM THE REBUILDING AFTER HURRICANE ANDREW FLORIDA'S SAMESTORE SALES ARE EXPECTED TO RISE 10 IN DECEMBER WITH ESPECIALLY STRONG GAINS IN THE MIAMI AREA WE ARE OPTIMISTIC ABOUT THE CHRISTMAS SEASON SAYS DONALD HESS PRESIDENT OF PARISIAN INC WHICH OPERATES MOST OF ITS DEPARTMENT STORES IN THE SOUTH BUT HE ADDS THAT HE'S A LITTLE CONCERNED ABOUT COMPARISONS WITH STELLAR YEARAGO NUMBERS MIDWESTERNERS APPEAR TO BE AMONG THE MERRIEST SHOPPERS AS THEIR PURCHASES CONTINUE TO EXCEED THE NATIONAL AVERAGE REBUILDING FOLLOWING FLOODS THAT RAVAGED THE MIDWEST LIKELY WILL STIMULATE SPENDING ON HOME IMPROVEMENT APPLIANCES AND FURNITURE MANAGEMENT HORIZONS SAYS INDIANA RETAILERS ARE EXPECTED TO FARE THE BEST AND TO RECORD AN 11 COMPARABLESTORE SALES INCREASE FROM LAST DECEMBER I ACTUALLY FEEL A LITTLE BETTER ABOUT THE ECONOMY THIS YEAR SAYS ELI BARKHAUSEN WHO WORKS AT A CHICAGO BANK BUT IT STILL HASN'T CHANGED MY VIEW THAT WE HAVE TO BE CAUTIOUS WHILE SOME CONSUMERS KEEP A LID ON SPENDING BY BUYING FEWER GIFTS OTHERS LOOK FOR ITEMS WITH LOWER PRICES INDEED DISCOUNTERS AND OUTLETS SHOULD SCORE BEST THIS SEASON WITH A 5 SAMESTORE SALES GAIN PREDICTS NEW YORK CONSULTANT KURT BARNARD WHO IS FORECASTING AN OVERALL 3 TO 4 COMPARABLESTORE SALES GAIN OFFPRICE RETAILER TJX COS FOR ONE EXPECTS GOOD SALES STRENGTH ACROSS THE MAP A SPOKESWOMAN SAYS DISCOUNTERS REPLACED DEPARTMENT STORES AT THE TOP OF SHOPPERS' PREFERENCE LISTS THIS YEAR ACCORDING TO THE DELOITTE & TOUCHE SURVEY TO ATTRACT STORE TRAFFIC CINCINNATIBASED FEDERATED PARENT OF BLOOMINGDALE'S RECENTLY DECIDED TO STOCK MORE GOODS THAT IT CAN BUY AND SELL CHEAPLY AND IT HOPES NOT HAVE TO MARK DOWN LATER THIS IS OVER AND ABOVE OUR ALREADYPLANNED SEASONAL PROMOTIONS A SPOKESWOMAN SAYS LIKEWISE RH MACY & CO IS APPROACHING THE CHRISTMAS SELLING SEASON MORE CAUTIOUSLY THIS YEAR A SPOKESWOMAN SAYS AFTER MANY BLUE CHRISTMASES RETAILERS HAVE LEARNED TO KEEP INVENTORIES LEAN AND EXPENSES DOWN USUALLY SALES GROWTH IS DRIVEN BY MARKDOWNS ON BIG INVENTORIES CUTTING INTO PROFIT MARGINS IRWIN COHEN COCHAIRMAN OF DELOITTE & TOUCHE'S RETAIL GROUP EXPECTS PROFIT GROWTH TO OUTPACE SALES INCREASES IN SOME CASES THIS HOLIDAY SEASON THAT BODES WELL FOR THE INDUSTRY HE SAYS MR BARNARD THE CONSULTANT NOTES THAT DEPARTMENT STORES LIKE MACY'S THAT CARRY HOME ACCESSORIES WILL FARE BETTER THAN THOSE THAT CONCENTRATE ON CLOTHING CONSUMERS WILL SPEND PROPORTIONATELY MORE ON SPRUCING UP THE HOME THAN THE WARDROBE HE SAYS BECAUSE TIGHT BUDGETS ARE FORCING THEM TO SPEND MORE TIME AT HOME PIER 1 IMPORTS INC A SPECIALTY RETAILER OF HOME FURNISHINGS AND ACCESSORIES SEES A 4 TO 6 SAMESTORE SALES GAIN FOR CHRISTMAS AND HAS STOCKED UP ON GIFT ITEMS LIKE STEMWARE AND PASTA SETS ROBERT HERNDON SENIOR VICE PRESIDENT FOR FINANCE AND ADMINISTRATION SAYS THERE WILL BE SOME UPTICK IN MOST AREAS OF THE COUNTRY ALTHOUGH SOUTHERN CALIFORNIA IS STILL SORT OF FLAT MEANWHILE APPAREL RETAILER CHARMING SHOPPES INC WHOSE FASHION BUG STORES SELL MODERATELY PRICED WOMEN'S FASHIONS HAS STOCKED UP ON LESSEXPENSIVE ITEMS FOR THE HOLIDAYS THAT IT HOPES TO SELL RIGHT AWAY AT PRICES BELOW THE USUAL MARKUP CHARMING SHOPPES HAD TO MARK DOWN POORSELLING ITEMS EARLIER THIS YEAR WE'RE BEING PROACTIVE SAYS BERNARD BRODSKY VICE PRESIDENT AND TREASURER 9311170088 931117 BUSINESS BRIEF NICHOLS INSTITUTE RESTRUCTURING EFFORT BEGINS 4THPERIOD CHARGE IS LIKELY NICHOLS INSTITUTE SAID IT LAUNCHED AN AGGRESSIVE CORPORATE RESTRUCTURING PROGRAM THAT WILL LIKELY LEAD TO A MATERIAL FOURTHQUARTER CHARGE AGAINST EARNINGS IN THE COMPARABLE 1992 QUARTER THE SAN JUAN CAPISTRANO CALIF MEDICALTESTING CONCERN REPORTED NET INCOME OF 19 MILLION OR 11 CENTS A SHARE IT WILL BE SEVERAL WEEKS BEFORE THE COMPOSITION AND MAGNITUDE OF THE RESTRUCTURING AND ITS FINANCIAL IMPACT CAN BE DETERMINED SAID GEORGE BRAGG THE RECENTLY INSTALLED PRESIDENT AND CHIEF EXECUTIVE OFFICER NICHOLS SAID ANY SIGNIFICANT CHARGE WILL PUT THE COMPANY IN VIOLATION OF CERTAIN LOAN COVENANTS NICHOLS SAID IT PLANS TO SEEK AMENDMENTS TO THE COVENANTS AS WELL AS TO EXPLORE OTHER ALTERNATIVES INCLUDING A CAPITAL INFUSION DEBT REDUCTION OR REVISED LOAN AGREEMENT IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE NICHOLS CLASS A SHARES CLOSED AT 6125 DOWN 1 OR 14 9311170087 931117 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 ALABAMA POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE NOV 1 2023 SOLD THROUGH A COMPETITIVE BID WON BY PAINEWEBBER INC THE BONDS WERE PRICED AS 73S AT 9876 TO YIELD 7403 ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE PRICED AT A SPREAD OF 102 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP ALABAMA POWER IS A UNIT OF SOUTHERN CO FEDERAL HOME LOAN BANK SYSTEM 79 MILLION OF NOTES DUE NOV 23 1998 PRICED AT PAR TO YIELD 501 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE DEC 2 2003 PRICED AT PAR TO YIELD 617 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 56 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO JAMES RIVER CORP 400 MILLION TWOPART ISSUE OF DEBT PRICED BY UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION OF NOTES DUE NOV 15 2003 WAS PRICED AS 67S AT 99775 TO YIELD 6731 A SPREAD OF 110 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 150 MILLION OF DEBENTURES DUE NOV 15 2023 WAS PRICED AS 775S AT 99789 TO YIELD 7768 A SPREAD OF 1375 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P JC PENNEY CO 1 BILLION THREEPART ISSUE OF DEBT PRICED BY UNDERWRITERS LED BY CS FIRST BOSTON INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 400 MILLION OF NOTES DUE NOV 15 1998 WAS PRICED AS 5375S AT 99718 TO YIELD 544 A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 325 MILLION OF NOTES DUE NOV 15 2003 WAS PRICED AS 6125S AT 993 TO YIELD 622 A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS THE THIRD TRANCHE 275 MILLION OF 30YEAR DEBENTURES DUE NOV 15 2023 WAS PRICED AS 7125S AT 99812 TO YIELD 714 A SPREAD OF 73 BASIS POINTS ABOVE TREASURYS ALL PARTS ARE NONCALLABLE AND ARE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P JOHNSON & JOHNSON 250 MILLION OF DEBENTURES DUE NOV 15 2023 PRICED AT PAR TO YIELD 673 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 34 BASIS POINTS ABOVE TREASURYS RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO NATIONWIDE HEALTH PROPERTIES INC 65 MILLION OF CONVERTIBLE DEBENTURES DUE JAN 1 1999 AND PRICED AT PAR AT 44825 A SHARE THROUGH LEAD UNDERWRITER NATWEST SECURITIES LTD THE DEBENTURES CONVERTIBLE INTO SHARES OF BENEFICIAL INTEREST IN THE REAL ESTATE INVESTMENT TRUST CARRY A 625 INTEREST RATE PAYABLE SEMIANNUALLY NEW YORK TELEPHONE CO 200 MILLION OF REFUNDING MORTGAGE BONDS SOLD THROUGH A COMPETITIVE BID VIA KIDDER PEABODY & CO THE BONDS DUE DEC 1 2033 WERE PRICED AS 7S AT 9755 TO YIELD 7187 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 20 YEARS THE BONDS WERE PRICED AT A SPREAD OF 81 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP PUBLIC SERVICE CO OF COLORADO 1345 MILLION OF FIRST COLLATERAL TRUST BONDS DUE NOV 1 2005 PRICED AS 6375S AT 99565 TO YIELD 6427 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SOUTHERN CALIFORNIA GAS CO 100 MILLION OF FIRST MORTGAGE BONDS SOLD THROUGH A COMPETITIVE BID WON BY MERRILL LYNCH & CO THE BONDS DUE NOV 15 2003 WERE PRICED AS 575S AT 97658 TO YIELD 6066 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P SOUTHERN CALIFORNIA GAS IS A UNIT OF PACIFIC ENTERPRISES CHATEAU PROPERTIES INC INITIAL OFFERING OF 57 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO HOSPITALITY FRANCHISE SYSTEMS INC SEVEN MILLION COMMON SHARES PRICED AT 43 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SOMATOGEN INC 51 MILLION COMMON SHARES SOLD IN TWO OFFERINGS FOR NET PROCEEDS OF 44 MILLION IN A PRIVATE PLACEMENT 21 MILLION SHARES WERE SOLD TO FOREIGN INVESTORS AT 825 APIECE THE COMPANY SAID AND THREE MILLION SHARES WERE SOLD TO INSTITUTIONAL INVESTORS AT 975 APIECE THORNBURG MORTGAGE ASSET CORP FIVE MILLION COMMON SHARES PRICED AT 16125 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO TOWER AIR INC INITIAL PUBLIC OFFERING OF 3750000 COMMON SHARES PRICED AT 1550 APIECE THROUGH UNDERWRITERS INCLUDING LEHMAN BROTHERS INC MORGAN STANLEY & CO AND GOLDMAN SACHS & CO UNIPHASE CORP INITIAL OFFERING OF 21 MILLION COMMON SHARES PRICED AT 8 APIECE THROUGH UNDERWRITERS LED BY UNTERBERG HARRIS ALASKA HOUSING FINANCE CORP 1439 MILLION 1993 FIRST SERIES INSUREDMORTGAGEPROGRAM BONDS PRICED BY CS FIRST BOSTON INC THE OFFERING INCLUDES THE FOLLOWING 575 PRICED AT PAR WHICH ARE TO YIELD 575 IN 2018 58S PRICED AT PAR WHICH WILL YIELD 58 IN 2023 AND 5875S PRICED AT PAR WHICH WILL YIELD 5875 IN 2033 MOODY'S HAS RATED THE ISSUE DOUBLEA1 AND S&P HAS ASSIGNED A SINGLEAPLUS RATING CHICAGO 1801 MILLION SERIES 1993 GENERALOBLIGATION BONDS PRICED BY A WILLIAM BLAIR & CO GROUP YIELDS RANGE FROM 425 IN 1998 TO 572 IN 2024 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P GEORGIA 345 MILLION GENERALOBLIGATION BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP WITH A BID SETTING THE NET INTEREST COST AT 478 YIELDS FOR REOFFERED BONDS RANGE FROM 27 IN 1994 TO 52 IN 2012 AND 2013 THE BONDS WHICH ARE NONCALLABLE HAVE BEEN RATED TRIPLEA BY MOODY'S AND DOUBLEAPLUS BY S&P HAMPTON ROADS SANITATION DISTRICT VA 1542 MILLION SERIES 1993 WASTEWATER REFUNDING AND CAPITALIMPROVEMENT REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 335 IN 1995 TO 548 IN 2023 THE BONDS HAVE BEEN RATED DOUBLEA BY BOTH MOODY'S AND S&P LOS ANGELES COUNTY PUBLIC WORKS FINANCING AUTHORITY 345 MILLION LEASE REVENUE BONDS PRICED BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 28 IN 1994 TO 556 IN 2016 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P LOS ANGELES DEPARTMENT OF WATER AND POWER 1496 MILLION WATERWORKS REVENUEREFUNDING BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5296 THE BONDS RATED DOUBLEA BY BOTH MOODY'S AND S&P ARE DUE 19952014 2018 2023 AND 2030 MASSACHUSETTS 240 MILLION OF GENERALOBLIGATION FIXEDRATE NOTES APPARENTLY WON BY A GROUP LED BY CS FIRST BOSTON INC WITH A BID SETTING THE NET INTEREST COST AT 2684 THE COUPON WAS SET AT 34 AND THE REOFFERING AT 265 THE NOTES ARE RATED MIG2 BY MOODY'S AND SP1 BY S&P NEW YORK CITY 6718 MILLION FISCAL 1994 SERIES D GENERALOBLIGATION REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 3 IN 1994 TO 603 IN 20122015 MOODY'S HAS RATED THE BONDS BAA1 BOTH S&P AND FITCH INVESTORS SERVICE INC ARE EXPECTED TO ASSIGN SINGLEAMINUS RATINGS NEW YORK STATE DORMITORY AUTHORITY 2186 MILLION REFUNDING REVENUE BONDS FOR NEW YORK UNIVERSITY PRICED BY A MORGAN STANLEY & CO GROUP THE TWOPART ISSUE INCLUDES 1835 MILLION SERIES 1993A BONDS WHICH ARE PRICED TO YIELD FROM 265 IN 1994 TO 526 IN 2011 THERE ARE ALSO 351 MILLION SERIES 1993B BONDS WHICH ARE PRICED TO YIELD FROM 33 IN 1995 TO 52 IN 2009 ALL OF THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P WASHINGTON DC METROPOLITAN AREA TRANSPORTATION AUTHORITY 3344 MILLION TRANSPORTATION REVENUEREFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 275 IN 1994 TO 548 IN 2014 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P WISCONSIN HEALTH AND EDUCATIONAL FACILITIES AUTHORITY 145 MILLION SERIES 1993 REVENUE BONDS FOR THE AURORA HEALTH CARE OBLIGATED GROUP PRICED BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 39 IN 1996 TO 575 IN 2023 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993245 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS CHRYSLER CORP 500 MILLION OF DEALER FLOORPLAN RECEIVABLES ASSETBACKED SECURITIES PRICED IN TWO PARTS MONDAY THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO ACCORDING TO MCM CORPORATEWATCH THE LOANS WERE ORIGINATED BY US AUTO RECEIVABLES CORP AND WILL BE SERVICED BY CHRYSLER CREDIT CORP TWO CHRYSLER UNITS THE 400 MILLION IN CLASS A1 CERTIFICATES WERE PRICED TO FLOAT 75 BASIS POINTS ABOVE THE 30DAY COMMERCIALPAPER RATE OR 3225 THE CERTIFICATES WITH A 12MONTH LEGAL FINAL MATURITY RECEIVED THE TOP SHORTTERM RATINGS FROM MOODY'S S&P FITCH AND DUFF & PHELPS CO THE 100 MILLION IN CLASS A CERTIFICATES STRUCTURED WITH A FIVEYEAR SOFTBULLET MATURITY WERE PRICED TO FLOAT 26 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIIFCATES WERE RATED TRIPLEA BY ALL FOUR RATING AGENCIES CREDIT ENHANCEMENT CONSISTS OF A 12 SUBORDINATE CLASS B AND A 055 RESERVE FUND MONTHLY PAYMENTS BEGIN IN DECEMBER COLONIAL NATIONAL BANK USA 400 MILLION OF CREDITCARD ASSETBACKED CERTIFICATES PRICED LATE MONDAY AT 9990625 TO FLOAT 25 BASIS POINTS ABOVE THE ONEMONTH LIBOR THE YIELD ON THE CERTIFICATES WAS 27 BASIS POINTS ABOVE ONEMONTH LIBOR THE ISSUE ADVANTA CREDIT CARD MASTER TRUST 19934 WAS LED BY CS FIRST BOSTON INC AND RATED TRIPLEA BY BOTH MOODY'S AND S&P CREDIT SUPPORT CONSISTS OF A 13 CASH COLLATERAL ACCOUNT THE CERTIFICATES HAVE AN AVERAGE LIFE OF 502 YEARS AND WERE STRUCTURED TO PAY INTEREST ONLY FOR 54 MONTHS BEFORE PRINCIPAL PAYMENTS ARE DISTRIBUTED THROUGH A CONTROLLED AMORTIZATION STRUCTURE THE FIRST INTEREST PAYMENT IS JAN 18 1994 THE FIRST PRINCIPAL PAYMENT IS JULY 15 1998 PAYMENTS ARE MONTHLY COLONIAL NATIONAL IS A UNIT OF ADVANTA CORP DISCOVER 3665 MILLION OF CREDITCARD ASSETBACKED CERTIFICATES PRICED LATE MONDAY IN TWO PARTS THROUGH UNDERWITERS LED BY DEAN WITTER REYNOLDS INC THE DISCOVER CARD IS OFFERED THROUGH GREENWOOD TRUST CO A UNIT OF DEAN WITTER DISCOVER & CO THE CERTIFICATES WERE OFFERED THROUGH DISCOVER CARD MASTER TRUST I 19933 THE 350 MILLION IN CLASS A CERTIFICATES WITH AN AVERAGE LIFE OF 10 YEARS WAS PRICED AS 62S AT 99561 TO YIELD 626 A 60BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES WERE RATED TRIPLEA BY MOODY'S S&P AND FITCH THE 165 MILLION IN CLASS B SUBORDINATE CERTIFICATES WITH AN AVERAGE LIFE OF 10 YEARS WAS PRICED AS 645S AT 99568 TO YIELD 651 AN 85BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY BOTH S&P AND FITCH IN ADDITION TO THE SUBORDINATE CLASS CREDIT ENHANCEMENT CONSISTS OF A CASH COLLATERAL ACCOUNT INITIALLY SIZED AT 147 MILLION AIWA CO JAPAN 200 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 0125 NOTES DUE MARCH 31 1998 AT PAR VIA UNION BANK OF SWITZERLAND EACH 50000FRANC NOTE IS CONVERTIBLE FROM DEC 16 1993 TO MARCH 17 1998 AT A 25 PREMIUM OVER THE CLOSING SHARE PRICE NOV 25 WHEN TERMS ARE FIXED FEES 1635 AUSTRIA SOVEREIGN 15 BILLION MARKS OF 65 EUROBONDS DUE JAN 10 2024 PRICED AT 10238 VIA DEUTSCHE BANK BONDS REOFFERED TO INVESTORS AT 10013 FOR A YIELD PICKUP OF 65 BASIS POINTS OVER THE 10YEAR GERMAN GOVERNMENT NOTE FEES 25 BADENWUERTTEMBERG GERMAN STATE 750 MILLION MARKS OF 65 BONDS DUE JAN 18 2024 PRICED AT 10146 VIA MORGAN STANLEY INTERNATIONAL AND SALOMON BROTHERS INTERNATIONAL BONDS REOFFERED TO INVESTORS AT 9946 TO YIELD 71 BASIS POINTS OVER THE 10YEAR GERMAN GOVERNMENT NOTE FEES 25 CHINA TEXTILE MACHINERY CHINA 35 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 1 NOTES DUE DEC 31 1998 AT PAR VIA SWISS BANK CORP FEES STANDARD CKD CORP JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 2 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 05 COUPON AT PAR VIA BANCO DEL GOTTARDO EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM DEC 16 TO NOV 25 1997 TO PURCHASE COMPANY SHARES TERMS FIXED NOV 24 FEES 1625 DAPO FINANCE AMSTERDAM NV GERMAN PARENT 100 MILLION MARKS OF BONDS PRICED AT 1025 VIA TRINKHAUS & BURKHART THE UNSUBORDINATED ISSUE IS GUARANTEED BY DEUTSCHE APOTHEKERUND ERSTE BANK FEES THREE ELECTRICITE DE FRANCE FRANCE 10 BILLION PESETA OF 8 EURONOTES DUE DEC 9 1998 PRICED AT 10146 VIA BANCO CENTRAL HISPANO AMERICANO SA AND SWISS BANK CORP FEES ONE EMPRESA DISTRIBUIDORASUR SA ARGENTINA 80 MILLION OF 8 EUROBONDS DUE NOV 26 1996 PRICED AND REOFFERED TO INVESTORS AT 9971 VIA MERRILL LYNCH INTERNATIONAL AT THE REOFFER THE BONDS GIVE A YIELD PICKUP OF 370 BASIS POINTS OVER THE 4375 US TREASURY NOTE DUE NOVEMBER 1996 FEES 075 EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 MILLION OF 5 EUROBONDS DUE DEC 7 1998 PRICED AT 99611 VIA NOMURA INTERNATIONAL BONDS REOFFERED TO INVESTORS AT 99611 FOR A YIELD PICKUP OF EIGHT BASIS POINTS OVER THE 475 US TREASURY DUE 1998 FEES 025 EXPORT CREDIT BANK OF TURKEY TURKISH AGENCY 130 MILLION OF FLOATINGRATE NOTES DUE DECEMBER 1998 PRICED AND REOFFERED TO INVESTORS AT PAR VIA MERRILL LYNCH INTERNATIONAL COUPON IS THE SIXMONTH LIBOR PLUS 165 BASIS POINTS FEES 05 HESSE GERMAN STATE 500 MILLION MARKS OF STEPUP COUPON BONDS PRICED AT 1013 AND REOFFERED TO INVESTORS AT 99125 VIA JP MORGAN GMBH COUPON FOR THE FIRST 10 YEARS IS 6 STEPPING UP TO 6875 FOR THE NEXT 10 THERE IS A PUT IN YEAR 10 AND EVERY COUPON DATE THEREAFTER AT PAR FEES 25 INI FINANCE BV SPAIN 650 MILLION OF 525 EURONOTES DUE DEC 9 1998 PRICED AT 100875 VIA MORGAN STANLEY INTERNATIONAL AND GOLDMAN SACHS INTERNATIONAL BONDS REOFFERED TO INVESTORS AT 9925 TO OFFER INVESTORS A YIELD PICKUP OF 38 BASIS POINTS OVER THE 475 US TREASURY DUE OCTOBER 1998 ISSUE LAUNCHED UNDER EURO MEDIUMTERMNOTE PROGRAM GUARANTEED BY INSTITUTO NACIONAL DE INDUSTRIA FEES 1875 ITO EN LTD JAPAN 140 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 0125 NOTES DUE APRIL 30 1998 AT PAR VIA YAMAICHI BANK SWITZERLAND LTD EACH 50000FRANC NOTE IS CONVERTIBLE FROM DEC 20 TO APRIL 23 1998 TERMS FIXED NOV 18 FEES 1625 MITSUBISHI CORPORATION FINANCE PLC JAPANESE PARENT 10 BILLION YEN OF 23 EUROBONDS DUE SEPT 6 1996 PRICED AND REOFFERED TO INVESTORS AT PAR VIA IBJ INTERNATIONAL KEEPWELL AGREEMENT BY PARENT MITSUBISHI CORP FEES 02 MONTREAL URBAN COMMUNITY CANADA 75 MILLION CANADIAN DOLLARS OF 750 EUROBONDS DUE JAN 5 2004 AND PRICED AT 10105 VIA HAMBROS BANK LTD BONDS REOFFERED TO INVESTORS AT 99425 TO OFFER A SPREAD OF 69 BASIS POINTS ABOVE THE COMPARABLE CANADIAN GOVERNMENT NOTE FEES TWO NATIONAL POWER UK 300 MILLION OF 625 EUROBONDS DUE DEC 1 2003 PRICED AT 100387 VIA MERRILL LYNCH INTERNATIONAL BONDS REOFFERED TO INVESTORS AT 98737 TO OFFER A YIELD PICKUP OF 70 BASIS POINTS OVER THE COMPARABLE US TREASURY FEES TWO NEDERLANDSE WATERSCHAPSBANK NV DUTCH AGENCY 150 MILLION DUTCH GUILDERS OF 6 EUROBONDS DUE JAN 10 2005 PRICED AT 1007 VIA ABN AMRO BONDS REOFFERED TO INVESTORS AT PAR TO YIELD 225 BASIS POINTS ABOVE THE 10YEAR DUTCH STATE LOAN FEES ONE RABOBANK NETHERLANDS 500 MILLION DUTCH GUILDERS OF 5875 EUROBONDS DUE JAN 17 2002 PRICED AT 1006 VIA RABOBANK BONDS BEING REOFFERED TO INVESTORS AT 9985 TO YIELD 5899 ANNUALLY A SPREAD OF 15 BASIS POINTS ABOVE THE NINEYEAR DUTCH STATE LOAN FEES ONE RIKEN CORP JAPAN 130 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 2 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 05 COUPON AT PAR VIA INDUSTRIAL BANK OF JAPAN LTD AND YAMAICHI BANK LTD EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM DEC 16 TO NOV 18 1997 TO PURCHASE COMPANY SHARES AT AN EXPECTED PREMIUM OF 25 ABOVE THE CLOSING SHARE PRICE NOV 24 WHEN TERMS ARE FIXED FEES 1625 SACHSENANHALT GERMAN STATE 600 MILLION MARKS OF 620 EUROBONDS DUE DEC 2 2013 PRICED AT 102345 AND REOFFERED TO INVESTORS AT 10017 VIA MORGAN STANLEY OF GERMANY THERE IS A PUT IN YEAR 10 AND EACH YEAR THEREAFTER FEES 25 SMC CORP JAPAN 10 BILLION YEN OF 305 EUROBONDS DUE MARCH 10 1998 PRICED AT 101575 AND REOFFERED TO INVESTORS AT 1000625 VIA ASAHI FINANCE PUT AT PAR ON MARCH 10 1997 FEES 1625 UNION BANK OF NORWAY NORWAY 100 MILLION OF UNDATED FLOATINGRATE NOTES PRICED AND REOFFERED AT 9923 VIA MORGAN STANLEY INTERNATIONAL COUPON IS THE THREEMONTH LIBOR PLUS 1625 BASIS POINTS FOR THE FIRST FIVE YEARS AND THREEMONTH LIBOR PLUS 255 BASIS POINTS THEREAFTER THE ISSUE IS CALLABLE IN DECEMBER 1998 AND EACH DECEMBER THEREAFTER FEES 12 WAKACHIKU CONSTRUCTION CO JAPAN 150 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 2 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 05 COUPON AT PAR VIA NOMURA BANK SWITZERLAND EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM DEC 15 1993 TO NOV 19 1997 TO PURCHASE COMPANY SHARES AT AN EXPECTED PREMIUM OF 25 ABOVE THE CLOSING SHARE PRICE NOV 22 WHEN TERMS ARE FIXED FEES 1625 9311170086 931117 TECHNOLOGY BRIEF LSI LOGIC INC COMPANY DEVELOPS METHOD TO BOOST CHIP PERFORMANCE LSI LOGIC INC SAID IT DEVELOPED A COMMERCIAL METHOD OF SQUEEZING AS MANY AS NINE MILLION TRANSISTORS ON A SINGLE COMPUTER CHIP THE SEMICONDUCTOR MANUFACTURER BASED IN SAN JOSE CALIF SAID ITS INNOVATION WOULD IMPROVE PERFORMANCE 15 TO 20 OVER SIMILAR DEVICES AND OFFER SUBSTANTIAL POWER SAVINGS LSI MAKES LOGIC CHIPS THAT ASSIST A COMPUTER'S CENTRAL MICROPROCESSOR IN MAKING CALCULATIONS AND OPERATING PERIPHERAL FUNCTIONS SUCH AS PRINTERS THE COMPANY SAID THE NEW TECHNOLOGY WOULD INCREASE PERFORMANCE LEVELS AND RELIABILITY OF EQUIPMENT TO BE USED ON FUTURE DATA SUPERHIGHWAYS 9311170084 931117 MORGAN STANLEY NET ROSE NEW YORK INVESTMENT BANKING FIRM MORGAN STANLEY GROUP INC REPORTED A 64 SURGE IN THIRDQUARTER NET INCOME DESPITE A DROP IN TRADING REVENUE FUELED BY A SHARP GAIN IN INVESTMENT BANKING REVENUES NET ROSE TO 1817 MILLION OR 220 A SHARE FOR THE OCT 31 FISCAL THIRD QUARTER UP FROM 1107 MILLION OR 126 A SHARE A YEAR EARLIER REVENUE ROSE 37 TO 103 BILLION FROM 7515 MILLION MORGAN STANLEY SAID INVESTMENT BANKING REVENUE ROSE TO 2956 MILLION FROM 1823 MILLION ALTHOUGH TRADING REVENUE FELL SLIGHTLY TO 2853 MILLION FROM 3008 MILLION THE COMPANY CITED CONTINUED GROWTH IN STRUCTURED DEBT UNDERWRITING A STRONG EQUITY NEW ISSUES MARKET AND INCREASED MERGER ACTIVITIES FOR THE IMPROVED RESULTS BUT IT NOTED DIFFICULT CONDITIONS IN THE MORTGAGEBACKED SECURITIES MARKET RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS WHILE TRADING RESULTS WERE WEAKER THAN IN RECENT QUARTERS COMMISSION REVENUE AND NET INTEREST INCOME WERE BOTH UP STRONGLY 9311170083 931117 BUSINESS BRIEF VIAGENE INC BIOTECHNOLOGY CONCERN SELLS PREFERRED STOCK TO CHIRON VIAGENE INC SAN DIEGO A CLOSELY HELD BIOTECHNOLOGY COMPANY SAID IT SOLD 20 MILLION OF PREFERRED STOCK AND WARRANTS TO CHIRON CORP AS PART OF A GENERESEARCH AGREEMENT THAT FOR THE MOMENT GIVES CHIRON A 199 STAKE IN VIAGENE VIAGENE ALSO SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 25 MILLION SHARES OF COMMON STOCK AT AN ESTIMATED PRICE BETWEEN 11 AND 13 A SHARE AT THOSE PRICES THE OFFERING WOULD RAISE BETWEEN 275 MILLION AND 325 MILLION CHIRON'S PURCHASE BEFORE THE OFFERING CONSISTED OF 16 MILLION SHARES OF CONVERTIBLE PREFERRED STOCK FOR 176 MILLION OR 11 A SHARE AND 24 MILLION FOR WARRANTS TO BUY AN ADDITIONAL 275 MILLION SHARES OF VIAGENE COMMON STOCK AT 11 A SHARE THE INITIAL PUBLIC OFFERING WOULD DILUTE CHIRON'S STAKE IN VIAGENE TO 149 ASSUMING NO WARRANTS ARE EXERCISED CHIRON HAS AGREED TO LIMIT ITS STAKE IN VIAGENE TO 199 THROUGH NOVEMBER 1995 AND TO NO MORE THAN 30 THROUGH NOVEMBER 1998 A VIAGENE SPOKESMAN SAID VIAGENE AND CHIRON SAID THEY AGREED TO COLLABORATE ON GENE TRANSFER PRODUCTS FOR HUMAN USE THAT COULD BE USED FOR TREATMENT OR PREVENTION OF CANCER 9311170082 931117 BUSINESS BRIEF WESTVACO CORP FISCAL 4THQUARTER NET LOSS BLAMED ON WORKFORCE CUTS WESTVACO CORP REPORTED A LOSS IN ITS FISCAL FOURTH QUARTER LARGELY DUE TO CHARGES STEMMING FROM REDUCTION IN ITS SALARIED WORK FORCE OF ABOUT 10 AND A REVAMPING OF THE COMPANY'S FINANCIAL COMPUTER SYSTEM THE PAPER PACKAGING AND CHEMICALS CONCERN IN NEW YORK REPORTED A NET LOSS FOR THE FISCAL FOURTH QUARTER ENDED OCT 31 OF 137 MILLION OR 20 CENTS A SHARE COMPARED WITH NET INCOME OF 329 MILLION OR 50 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES INCREASED 06 TO 6175 MILLION FROM 6145 MILLION WESTVACO RECORDED A CHARGE OF 434 MILLION OR 40 CENTS A SHARE IN THE QUARTER TO ACCOUNT FOR TRIMMING 450 OF 4900 SALARIED POSITIONS MAINLY THROUGH EARLY RETIREMENT AND ATTRITION THE COMPANY HAS ABOUT 14500 EMPLOYEES WORLDWIDE THE COMPANY SAID THE INCREASED CORPORATETAX RATE RESULTED IN A CHARGE OF 129 MILLION OR 19 CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WESTVACO SHARES FELL 125 CENTS TO 34375 A SHARE 9311170081 931117 COMMODITIES PRECIOUSMETALS PRICES EASE AMID PERCEPTION THAT NAFTA MAY RECEIVE APPROVAL OF CONGRESS BY JAMES TANNER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL TRADERS' GROWING PERCEPTIONS THAT THE NORTH AMERICAN FREE TRADE AGREEMENT MAY BE APPROVED BY CONGRESS PUSHED PRECIOUSMETALS PRICES DOWN AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY FELL 110 TO SETTLE AT 37460 AN OUNCE WHILE THE ACTIVELY TRADED DECEMBER SILVER FUTURES CONTRACT WAS UP 05 CENT TO 456 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE JANUARY PLATINUM DECLINED 1 TO 37880 AN OUNCE THE GROWING POSSIBILITY THAT NAFTA IS GOING TO PASS SEEMED TO PUT A LITTLE DAMPER ON THE GOLD MARKET SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IF NAFTA DOESN'T PASS THERE ARE THOUGHTS IT COULD HURT THE BOND MARKET WHICH WOULD BE POSITIVE FOR GOLD EVEN IF NAFTA DOES PASS ANALYSTS SAID THE AGREEMENT ISN'T LIKELY TO HAVE A LASTING IMPACT ON THE PRICE OF GOLD RATHER IT COULD PUSH PRICES FARTHER DOWN IN THE SHORT TERM BEFORE THE MARKET'S FOCUS RETURNS TO OTHER ISSUES THEY SAID UNLIKE GOLD WHICH HAS SEEN WEAK INVESTOR DEMAND OF LATE THE SILVER MARKET RECENTLY HAS WITNESSED HEALTHY INVESTOR DEMAND ANALYSTS SAID MIDDLE EASTERN INVESTOR SYNDICATES IN PARTICULAR HAVE BEEN BIG BUYERS OF SILVERFUTURES CONTRACTS LATELY ANALYSTS SAID PLATINUM PRICES WERE SAPPED MILDLY YESTERDAY BY A REPORT FROM JOHNSON MATTHEY PLC THE PRECIOUSMETALS REFINER AND SALES AGENT THAT SAID PLATINUM SUPPLIES WILL RISE IN ITS REPORT ON THE MARKET THE COMPANY SAID IT WAS CAUTIOUS ABOUT PROSPECTS FOR THE METAL BECAUSE WORLD SUPPLIES IN 1993 ARE FORECAST TO JUMP BY 10 TO A RECORD 421 MILLION OUNCES THE REPORT ALSO FORECAST THAT PLATINUM PRICES WILL TRADE FROM 350 TO 390 AN OUNCE IN THE COMING SIX MONTHS SPOT PLATINUM PRICES PEAKED AT 419 AN OUNCE IN AUGUST AND ARE CURRENTLY AT ABOUT 377 AN OUNCE ONLY ABOUT 2 HIGHER THAN GOLD NORMALLY PLATINUM'S PRICE IS AT A WIDE PREMIUM OF BETWEEN 10 TO 30 OVER GOLD THE FLAT PLATINUM PRICE REFLECTS AN ESTIMATED SUPPLY SURPLUS OF 190000 OUNCES OVER DEMAND IN 1993 SAYS THE AUTHOR OF JOHNSON MATTHEY'S REPORT JEREMY COOMBES THIS IS THE LARGEST SURPLUS FOR SEVERAL YEARS SOUTH AFRICAN SUPPLIES ARE ESTIMATED TO INCREASE BY 500000 OUNCES TO 325 MILLION THIS YEAR AND THEY MORE THAN OFFSET A 100000OUNCE DECLINE OF RUSSIAN SALES TO 650000 OUNCES MR COOMBES SAID DEMAND FOR PLATINUM WILL EXPAND BY 6 TO 402 MILLION OUNCES IN 1993 BUT IT STILL WILL BE OVERWHELMED BY SUPPLIES ACCORDING TO THE REPORT AMONG THE FACTORS LIKELY TO ENHANCE DEMAND IS SOLID INDUSTRIAL CONSUMPTION NOTABLY IN THE MANUFACTURING OF ANTIPOLLUTIONAUTOMOBILE CATALYSTS THAT NEUTRALIZE NOXIOUS VEHICLE FUMES AND ARE MADE OF PLATINUM PURCHASES OF PLATINUM AUTOMOBILE CATALYSTS ARE PROJECTED TO RISE TO 174 MILLION OUNCES THIS YEAR FROM 155 MILLION IN 1992 SAYS THE REPORT THE US AUTO INDUSTRY IS BUOYANT AND THERE ARE TOUGHER ANTIPOLLUTION RESTRICTIONS IN PLACE WORLDWIDE THAT ARE LIKELY TO RAISE CONSUMPTION OF PLATINUM THE EUROPEAN CAR MARKET IS IN RECESSION BUT MORE PLATINUM IS NEVERTHELESS NEEDED TO MEET NEW ENVIRONMENTAL STANDARDS THE DEPRESSED JAPANESE MOTOR INDUSTRY HOWEVER IS BUYING LESS PLATINUM DESPITE THE JAPANESE ECONOMIC DOWNTURN OVERALL DEMAND FOR PLATINUM THERE IS EXPECTED TO RISE TO 194 MILLION OUNCES FROM 187 MILLION SAYS THE REPORT IN OTHER COMMODITY MARKETS YESTERDAY GRAINS WHEAT FUTURES PRICES ROSE BECAUSE THE CLINTON ADMINISTRATION SAID IT WOULD INVESTIGATE CLAIMS BY US FARMERS THAT CANADA IS UNDERCUTTING US WHEAT THE GESTURE WAS APPARENTLY MADE TO WIN SUPPORT FROM SOME FARMSTATE CONGRESSMAN FOR THE NORTH AMERICAN FREE TRADE AGREEMENT WHEAT TRADERS ARE GENERALLY SKEPTICAL THAT ANY INVESTIGATION WOULD LEAD TO QUOTAS OR TARIFFS ON CANADIAN WHEAT HOWEVER US WHEAT FARMERS ON THE NORTHERN PLAINS ARE ANGRY THAT CANADIAN WHEAT CROSSES THE BORDER INTO THE US WHILE FARMERS ON THE SOUTHERN PLAINS ARE ANGRY THAT CANADIAN GRAIN EXPORTS ARE GOING TO MEXICO WHEAT PRICES WERE ALSO SUPPORTED BY REPORTS THAT SEVERAL NATIONS ARE TENDERING FOR US WHEAT INCLUDING MOROCCO THE PHILIPPINES AND EGYPT THERE IS ALSO GROWING SPECULATION THAT CHINA MIGHT BUY US WHEAT SOMETIME IN DECEMBER IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR DECEMBER DELIVERY ROSE 325 CENTS A BUSHEL TO SETTLE AT 34875 9311170080 931117 OUR COLOR BUT NOT OUR KIND BY STANLEY CROUCH BECAUSE THERE IS A HISTORY OF JUDICIAL PREJUDICE AND EXCESSIVE POLICE VIOLENCE AGAINST BLACK AMERICANS A SUSPICION OF LAW AND ORDER HAS EVOLVED IN THE BLACK COMMUNITY THAT MAKES IT DIFFICULT FOR US TO CLEARLY ADDRESS THE VIOLENT CRIME THAT PLAGUES OUR CITIES NO PRESIDENTIAL SERMONIZING NO CRIME BILL NO GUNCONTROL LAWS WILL WORK FOR BLACK AMERICANS UNLESS LAW ENFORCEMENT AND BLACK AMERICANS COME TOGETHER FOR MUTUAL SUPPORT WE ARE IN THE MIDDLE OF A CRIMINAL OCCUPATION OF OUR CITIES ON A SCALE THAT HAS NO PRECEDENT THIS IS PARTIALLY BECAUSE OF THE DRUG TRADE AND PARTIALLY BECAUSE THE UNDERGROUND SALE OF ILLEGAL FIREARMS HAS MADE TRADITIONALLY LOWERCLASS STREET GANGS INTO DRIVEBY ORGANIZATIONS THAT MURDER IN LARGER NUMBERS THAN WE HAVE EVER SEEN THE CITIZENS OF HIGHCRIME AREAS LIVE UNDER AN ANARCHIC MARTIAL LAW DECLARED BY THESE CRIMINALS WHO LORD IT OVER THE NIGHT AND FOR YOUNGSTERS TURN ACTS AS SIMPLE AS ATTENDING PUBLIC SCHOOL INTO DAILY EXPERIENCES OF TERROR THE FACT THAT SO MANY OF THESE VIOLENT CRIMINALS ARE BLACK MAKES IT MORE DIFFICULT THAN IT SHOULD BE TO RECOGNIZE THAT THEY REPRESENT CRIMINALITY FIRST AND FOREMOST AND RACE ONLY INCIDENTALLY BUT IF ANYONE POINTS OUT THAT LESS THAN 1 OF BLACK YOUTHS COMMIT MURDERS AND THAT THE VAST MAJORITY OF THE YOUNG BLACK PEOPLE THEY TERRORIZE WANT THESE TYRANTS EITHER INTIMIDATED INTO GOOD BEHAVIOR OR PUT AWAY THE RESPONSE IS OFTEN AN INVERTED DEFENSE OF THESE MONSTERS AS VICTIMS OR ONE IS TOLD THAT CRIME IN THE SUITES IS JUST AS BAD AS CRIME IN THE STREETS AND THAT IT IS CRIMINALS SUCH AS THE WHITE BCCI CROOKS WHO BELONG AT THE TOP OF THE LAWANDORDER MENU ANY SUGGESTION OF HARSH PENALTIES IS INTERPRETED AS HATRED OF BLACK PEOPLE OF BLACK YOUTHS IN PARTICULAR AND LABELED FASCIST IF ONE RESPONDS BY SAYING THAT ALL CRIMINALS FROM THE SUITES TO THE STREETS SHOULD BE PUT AWAY IN PLACES THAT ARE NOT SIMPLY HOMES AWAY FROM HOME THAT DO NOT PROVIDE TELEVISIONS AND RADIOS OR ALLOW CONJUGAL VISITS AND THAT DEMAND HARD LABOR THE LISTENER WILL USUALLY GO DEAF AND RETURN TO THE POSITION THAT BLACK CRIMINALS ARE ABOVE ALL ELSE VICTIMS AND THAT ANY PROPOSAL OF THIS KIND WOULD UNLEASH RACIALLY SELECTIVE AND UNRECALLABLE MILITARY DICTATORSHIPS OF URBAN AREAS IF ONE OBSERVES THAT NO WHITE ORGANIZATION THAT RODE THROUGH BLACK COMMUNITIES RACKING UP HUNDREDS OF MURDERS WITH ILLEGAL WEAPONS WOULD BE ALLOWED TO CONTINUE KILLING EVEN IF IT MEANT THAT THE MILITARY HAD TO BE CALLED INTO ACTION TO RESTORE ORDER THE POINT IS MISSED IN SHORT A DOUBLE STANDARD EXISTS THE TERRORIZING AND MURDERING OF BLACK PEOPLE BY BLACK CRIMINALS IS SOCIALLY UNDERSTANDABLE HOWEVER BAD THEIR CONDUCT MIGHT BE WE HAVE COME TO EXPECT LESS OF BLACKS THAN WE DO EVEN OF WHITE RACISTS WE FIND IT SOMEHOW UNFAIR TO BLACK AMERICANS IN GENERAL THAT THE CRIMINALS AMONG THEM BE REMOVED OR INTIMIDATED INTO SUBMISSION MUCH OF THIS PROBLEM IS ROOTED IN IDEAS THAT ORIGINATED IN THE 1960S A DECADE AS FILLED WITH SHODDY THINKING AS WITH GLOWING VICTORIES FOR THE HIGHEST ASPIRATIONS OF OUR DEMOCRACY AFTER THE BLACK POWER MOVEMENT TWISTED THE HEAD OF THE CIVIL RIGHTS MOVEMENT OUR AMERICAN LOVE OF THE BAD BOY AND OUR TRADITIONAL SUSPICION OF AUTHORITY WERE THROWN INTO THE POT WITH MARXIST CLICHES AND BOILED INTO AN IRRATIONALLY RADICAL BREW SUCH PEOPLE AS HUEY NEWTON ELDRIDGE CLEAVER AND ANGELA DAVIS POLITICIZED THE ROMANCE OF CRIMINALITY PROJECTING THE IDEAS THAT THE BLACK CRIMINAL IS A HEROVICTIM AN UNCONSCIOUS REVOLUTIONARY WHO REPRESENTS THE COMMUNITY'S ANGER AT THE UNFAIRNESS OF THE GREATER SOCIETY AND THAT THE POLICE OFFICER IS A VILLAIN WHO REPRESENTS THE BRUTAL RUTHLESSNESS OF THE PREJUDICIAL ORDER IT WAS A HUSTLE THAT WORKED INCARCERATED BLACK CRIMINALS BEGAN TO SEE THEMSELVES AS POLITICAL PRISONERS AND MIDDLECLASS BLACK NAIFS LIKE ANGELA DAVIS WERE INTIMIDATED INTO EMBRACING THEM AS THE MOST AUTHENTIC BLACK PEOPLE RESPONSIBILITY AND GUILT WERE SHIFTED OVER TO WHITE SOCIETY AND THE BLACK MIDDLE CLASS WHICH WAS TOLD THAT CIVILIZED BEHAVIOR WAS AN ATTEMPT TO ACT WHITE THAT WAS A REMARKABLE MOMENT BECAUSE THE TRADITIONAL BLACK AMERICAN ATTITUDE TOWARD CRIMINALS WAS AND IS THE SAME AS THAT OF ANY SENSIBLE COMMUNITY THEY MAY BE OUR COLOR BUT THEY'RE NOT OUR KIND CRIMINALS WEREN'T SEEN AS BEACONS OF HARSH TRUTHS AND SOPHISTICATION WASN'T BELIEVED AN EXCLUSIVE PROVINCE OF WHITE PEOPLE THIS IS STILL LARGELY TRUE BUT THE DEBATE OVER CRIMINALITY AND ETHNIC AUTHENTICITY HAS BEEN MUDDLED BY PURPORTED REPRESENTATIVES OF BLACK AMERICAN INTERESTS WHO ARE STUCK IN PLATITUDES FROM THE LATE '60S THEY HAVE ONLY RECENTLY BEGUN TO REALIZE WHAT THE IDEA OF THE CRIMINALHERO HAS DONE TO POPULAR ENTERTAINMENT WHERE VIDEO AFTER VIDEO PROJECTS THE IMAGE OF BLACK YOUTH AS EITHER MURDEROUS OR OBSESSED WITH SEX TO THE POINT OF AN EROTIC MINSTRELSY ROOTED MUCH MORE IN MADONNA THAN IN THE BLUES THINGS NEED TO BE UPDATED WHAT WE NEED IS REPUDIATION OF CRIMINAL BEHAVIOR NO MATTER WHAT SEGMENT OF SOCIETY IT COMES FROM JUST AS ALL AMERICANS HAVE TO FREE THEMSELVES OF STEREOTYPES ABOUT BLACK CRIMINALS WE ALSO HAVE TO FREE OURSELVES OF STEREOTYPES ABOUT THE POLICE ANYONE WHO COMMITS BRUTAL CRIMES SHOULDN'T BE ALLOWED TO SQUEEZE SYMPATHETIC TEARS FROM THE STONE FACE OF JUSTICE BECAUSE A LIST OF HISTORICAL INJUSTICES IS HOISTED WHEN THE POLICE STEP OUT OF LINE THEY SHOULD BE PROSECUTED TO THE FULLEST EXTENT OF THE LAW BUT THOSE ROTTEN APPLES SHOULDN'T BE VIEWED AS THE ESSENCE OF LAW ENFORCEMENT ANYMORE THAN BLACK CRIMINALS SHOULD BE SEEN AS ETHNIC REPRESENTATIVES IN CITIES OF MILLIONS HOMICIDES BY POLICE ARE ALWAYS FAR BELOW 50 A YEAR WHICH SHOWS THE ABSURDITY OF THE PERCEPTION THAT THE POLICE ARE A FASCIST MURDEROUS OCCUPYING FORCE HOW COULD ANY POLICE CHIEF OR MAYOR MAINTAIN HIS JOB IF THE LOCAL FORCE KILLED EVEN A QUARTER OF THE NUMBERS WE NOW ROUTINELY ACCEPT FROM CRIMINALS WE DON'T NEED TO BUILD MORE PRISONS THEY'RE A WASTE OF MONEY WE SHOULD CONFRONT THE LARGE NUMBERS OF CRIMINALS WE HAVE OCCUPYING OUR CITIES AND TAKE THE TERM WAR ON CRIME SERIOUSLY WE SHOULD BUILD POWSTYLE CAMPS STAFFED BY THE MILITARY THIS DOES NOT REQUIRE NEW FUNDING THEY ARE ALREADY PAID IN THOSE CAMPS THERE SHOULD BE HARD LABOR AND EDUCATION INCLUDING A RULE THAT PRISONERS WHO HAVE NOT ACHIEVED A GED LEVEL OF COMPETENCE IN READING WRITING AND ARITHMETIC WILL NOT BE ELIGIBLE FOR PAROLE VISTA WORKERS INTERNING EDUCATION MAJORS AND WHITECOLLAR CRIMINALS COULD DO THE TEACHING WE MUST IMPOSE SPARTAN CONDITIONS HARD LABOR AND CLOSE SURVEILLANCE TO ELIMINATE HOMOSEXUAL RAPE DRUG USE AND THE FORMATION OF MURDEROUS GANGS SO AS TO REMOVE ALL THE GLAMOUR FROM DOING TIME ONLY THEN WOULD THE COUNTRY BEGIN TO ADDRESS THE NEEDS OF OUR MOST BELEAGUERED COMMUNITIES MR CROUCH IS THE AUTHOR OF NOTES OF A HANGING JUDGE ESSAYS AND REVIEWS 19791989 OXFORD 1990 AND A 1993 RECIPIENT OF A MACARTHUR FOUNDATION GENIUS GRANT 9311170079 931117 BUSINESS BRIEF SHOWBIZ PIZZA TIME INC FIRM TO SELL MOST ASSESTS OF MONTEREY'S TEXMEX LINE SHOWBIZ PIZZA TIME INC SAID IT AGREED TO SELL MOST OF THE ASSETS OF ITS 28RESTAURANT MONTEREY'S TEXMEX CAFE CHAIN TO A COMPANY BEING FORMED BY RIVER ASSOCIATES INC A HOUSTON INVESTMENT FIRM SHOWBIZ OF IRVING TEXAS WHICH ALSO OPERATES 322 CHUCK E CHEESE'S AND SHOWBIZ PIZZA PLACE PIZZA RESTAURANTS SAID THE PURCHASE PRICE FOR THE ASSETS IS 11 MILLION IN CASH A 25 EQUITY STAKE IN THE ACQUIRING COMPANY AND A 300000 NOTE MICHAEL MAGUSIAK CHIEF FINANCIAL OFFICER OF SHOWBIZ SAID THE COMPANY IS SELLING MONTEREY'S ASSETS BECAUSE THE CHAIN WASN'T GROWING WE'VE SAID OVER THE LAST COUPLE OF YEARS OR SO THAT OUR INTENTIONS WERE TO EITHER USE MONTEREY AS A GROWTH VEHICLE OR DISPOSE OF IT HE SAID SHOWBIZ SHARES CLOSED AT 1350 UP 625 CENTS IN NASDAQ STOCK MARKET TRADING YESTERDAY 9311170078 931117 BUSINESS BRIEF AMOCO CORP UNIT LOCATES NATURAL GAS IN MEDITERRANEAN OFF EGYPT AMOCO CORP HOUSTON SAID ONE OF ITS UNITS DISCOVERED NATURAL GAS IN THE MEDITERRANEAN SEA OFF EGYPT THE DISCOVERY WELL IN 260 FEET OF WATER WAS DRILLED TO A DEPTH OF 13300 FEET AND PRODUCED 345 MILLION CUBIC FEET OF NATURAL GAS A DAY AMOCO AND INTERNATIONAL EGYPTIAN OIL CO A UNIT OF ITALY'S AGIP SPA EACH OWN A 50 WORKING INTEREST IN THE WELL INTERNATIONAL EGYPTIAN OIL IS THE OPERATOR SEPARATELY AMOCO SAID IT HAS ACQUIRED THE FOSTER GAS GATHERING SYSTEM IN ECTOR AND MIDLAND COUNTIES TEXAS FROM PRIVATELY HELD AMERICAN CENTRAL GAS COMPANIES INC TERMS OF THE AGREEMENT WEREN'T DISCLOSED THE SYSTEM TRANSPORTS 13 MILLION CUBIC FEET OF GAS A DAY FROM 2500 WELLS IN ABOUT 30 FIELDS AMOCO EXPECTS TO CONNECT THE SYSTEM WITH ITS GASPROCESSING PLANTS NEAR ODESSA TEXAS IN JANUARY 1994 9311170077 931117 GM SEES NORTH AMERICAN PROFIT IN '94 US SUES TO BLOCK SALE OF ALLISON UNIT BY JOSEPH B WHITE AND ROBERT L SIMISON STAFF REPORTERS OF THE WALL STREET JOURNAL RYE NY GENERAL MOTORS CORP CHIEF EXECUTIVE OFFICER JOHN F SMITH JR TOLD ANALYSTS THAT THE NO 1 AUTO MAKER WILL BE PROFITABLE IN ITS NORTH AMERICAN OPERATIONS NEXT YEAR AFTER MORE THAN 17 BILLION IN LOSSES SINCE 1990 MR SMITH DIDN'T ANNOUNCE A SPECIFIC TARGET BUT SAID HE EXPECTS GM'S DOMESTICVEHICLE OPERATIONS TO GET BACK IN THE BLACK EVEN IF OVERALL US CAR AND TRUCK SALES FALL SHORT OF AN EXPECTED 5 INCREASE NO EXCUSES MR SMITH SAID SEPARATELY THE JUSTICE DEPARTMENT FILED AN ANTITRUST SUIT TO BLOCK GM'S PROPOSED 525 MILLION SALE OF ITS ALLISON TRANSMISSION DIVISION TO ZF FRIEDRICHSHAFEN AG OF GERMANY SIGNALING THAT IT IS INTENSIFYING ITS SCRUTINY OF DEALS INVOLVING TECHNOLOGY A GM SPOKESWOMAN DECLINED TO COMMENT SAYING THAT COMPANY OFFICIALS HADN'T SEEN THE SUIT GM WANTS TO SELL THE UNIT WHICH MAKES AUTOMATIC TRANSMISSIONS FOR BUSES AND TRUCKS AS PART OF ITS EFFORT TO FOCUS ON CARS AND LIGHT TRUCKS BUT THE DEPARTMENT SAID THE PROPOSED SALE WOULD RESULT IN HIGHER COSTS FOR PUBLICTRANSPORTATION CONSUMERS AND POSSIBLY POORER SERVICE TO TRANSMISSION CUSTOMERS THE COMBINED ALLISONZF WOULD HAVE A DOMINANT 78 SHARE OF THE MARKET FOR MEDIUM AND HEAVYDUTY AUTOMATIC TRANSMISSIONS AND WOULD FACE ONLY ONE COMPETITOR THE DEPARTMENT SAID THIS CASE IS AN EXAMPLE THAT MERGER ENFORCEMENT IN THE 1990S WILL INCREASINGLY FOCUS ON THE PROTECTION OF COMPETITION IN TECHNOLOGY ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID THE SUIT WAS FILED IN FEDERAL COURT IN WILMINGTON DEL AT AN ALLDAY CONFERENCE AT THE RYE TOWN HILTON MEANWHILE MR SMITH CHIEF FINANCIAL OFFICER RICHARD WAGONER GERALD KNECHTEL VICE PRESIDENT FOR LABOR RELATIONS AND OTHER GM EXECUTIVES PAINTED AN UPBEAT PICTURE MR SMITH AND MR KNECHTEL SAID THAT DESPITE A NEW CONTRACT WITH THE UNITED AUTO WORKERS UNION THAT IS MORE EXPENSIVE THAN WE WOULD HAVE LIKED GM CAN STILL ACHIEVE ITS GOAL OF ELIMINATING BY 1996 THE ASSEMBLYLABORCOST DISADVANTAGE OF 795 A VEHICLE COMPARED WITH FORD MOTOR CO WE HAVE SPECIFIC PLANS IN PLACE AT EVERY PLANT MR SMITH SAID SINCE LAST YEAR GM HAS CUT THE AVERAGE NUMBER OF HOURS IT TAKES TO BUILD A VEHICLE IN ITS PLANTS BY 12 TO ABOUT 30 HOURS FROM 34 HOURS FORD REQUIRED ROUGHLY 24 HOURS TO BUILD A VEHICLE A YEAR AGO GM OFFICIALS SAID BUT MR SMITH AND MR KNECHTEL SAID THEY DIDN'T DIDN'T HAVE A TARGET FOR HOW MANY MORE US HOURLY JOBS GM WILL ELIMINATE AS IT PUSHES TO CLOSE THE PRODUCTIVITY GAP HIGH LABOR COSTS CONTRIBUTED TO GM'S LOSS IN NORTH AMERICAN OPERATIONS OF 14 BILLION THROUGH THE FIRST NINE MONTHS OF THIS YEAR COMPARED WITH A 388 BILLION YEAREARLIER DEFICIT BEFORE A BIG CHARGE FOR RETIREE MEDICAL BENEFITS ANALYSTS RESPONDED POSITIVELY TO MR SMITH'S PROMISE TO SHOW A TRUE PROFIT IN NORTH AMERICA AND TO MONDAY'S ANNOUNCEMENT THAT GM IS CONSIDERING CONTRIBUTING CLASS E COMMON STOCK TO REDUCE A 24 BILLION UNFUNDED PENSION LIABILITY HOWEVER GM CLASS E HOLDERS SAW THE PENSIONFUNDING PLAN AS NEGATIVE AND SOLD THE SHARES WHICH REPRESENT A DIVIDEND INTEREST IN THE EARNINGS OF GM'S ELECTRONIC DATA SYSTEMS CORP UNIT GM CLASS E SHARES CLOSED AT 29 DOWN 2 OR 65 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE 185 MILLION SHARES HAVE A CURRENT MARKET VALUE OF 537 BILLION GM COMMON STOCK ROSE 125 OR 24 TO CLOSE AT 5275 A 52WEEK HIGH THE EXECUTIVES ALSO SAID GM'S US HOURLY EMPLOYMENT WILL PROBABLY DECLINE TO 245000 WORKERS BY SOMETIME NEXT YEAR MEETING EARLIER THAN EXPECTED A TARGET TO REDUCE HOURLY EMPLOYMENT TO 250000 PEOPLE BY 1995 NORMAL ATTRITION COULD REDUCE GM'S HOURLY WORK FORCE BY 8000 TO 10000 WORKERS EACH YEAR THEREAFTER MR KNECHTEL SAID GM HAS ACHIEVED 4 BILLION IN COST SAVINGS FROM ITS CAMPAIGN TO CUT PURCHASING EXPENDITURES THE COMPANY WILL SEEK FURTHER SAVINGS MR WAGONER SAID GM PLANS TO EXPAND TRUCK CAPACITY IN THE US AND TO LOOK AT SHARING MORE VEHICLES BETWEEN ITS US AND EUROPEAN OPERATIONS GM'S RELATIVE PAUCITY OF NEW PRODUCTS IN 1993 CONTRIBUTED TO A CONTINUING SLIDE IN US MARKET SHARE THE COMPANY'S SHARE OF THE TOTAL US VEHICLE MARKET FELL TO 312 IN THE THIRD QUARTER FROM 335 A YEAR EARLIER MR SMITH ASSURED ANALYSTS THAT GM HAS 14 NEW VEHICLES COMING FOR THE US MARKET IN 1994 AND 1995 BUT HE ACKNOWLEDGED THAT THE AUTO MAKER HAS STRUGGLED THIS YEAR IN ITS EFFORT TO OVERHAUL ITS PRODUCTDEVELOPMENT PROCESS IN THE LAST COUPLE OF MONTHS HE SAID THE NEW SYSTEM IS STARTING TO WORK YESTERDAY GM SHOWED OFF SEVERAL FUTURE PRODUCTS IN HOPES OF PERSUADING ANALYSTS THAT IT HAS FOUND THE RIGHT TOUCH GM DISPLAYED A RED 1995 MONTE CARLO A SMOOTHSKINNED TWODOOR AUTO DERIVED FROM THE CURRENT CHEVROLET LUMINA COUPE A 1995 LUMINA SEDAN THAT WILL APPEAR EARLY NEXT YEAR WITH A NEW EXTERIOR SHAPE SIMILAR TO THE CURRENT DODGE INTREPID AND TWO VERSIONS OF A NEW SPORTUTILITY VEHICLE AIMED AT THE SEGMENTLEADING FORD EXPLORER SEPARATELY A TOYOTA MOTOR CORP OFFICIAL IN TOKYO SAID TOYOTA HAS AGREED TO BUY ABOUT 20000 SMALL CARS A YEAR FROM GM AND SELL THEM IN JAPAN UNDER THE TOYOTA NAME GM AND TOYOTA EXECUTIVES WILL SIGN THE DEAL FRIDAY IN SAN FRANCISCO THE OFFICIAL SAID JOE DAVIDSON IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9311170076 931117 BUSINESS BRIEF CENTRAL & SOUTH WEST CORP EL PASO ELECTRIC'S CREDITORS HOLDERS APPROVE ACQUISITION CENTRAL & SOUTH WEST CORP DALLAS SAID CREDITORS AND SHAREHOLDERS OF EL PASO ELECTRIC CO APPROVED EL PASO'S REORGANIZATION PLAN WHICH INCLUDES ITS SALE TO CENTRAL VOTING ENDED MONDAY AFTERNOON AND ALTHOUGH CENTRAL SAID THE RETURNS WERE PRELIMINARY THE RESULTS INDICATE OVERWHELMING APPROVAL OF THE PLAN THE EL PASO TEXAS UTILITY FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN JANUARY 1992 THE REORGANIZATION PLAN INCLUDES ITS SALE TO CENTRAL FOR ABOUT 22 BILLION CENTRAL ALSO A UTILITY SAID IT NEXT WILL FOCUS ON OBTAINING REGULATORY APPROVALS FOR THE ACQUISITION 9311170075 931117 HEALTH CARE REPORT FROM THE TRENCHES HIGHPRESSURE TACTICS RAISE DOCTOR'S PRESSURE BY PHILIP R ALPER MEDCO CONTAINMENT SERVICES INC'S SHAREHOLDERS ARE EXPECTED TO APPROVE THE COMPANY'S MERGER WITH MERCK & CO THE NATION'S LARGEST PHARMACEUTICAL COMPANY AT A SPECIAL MEETING TOMORROW BY ACQUIRING MEDCO MERCK WILL BE IN A POSITION THROUGH THE LARGE MAILORDER DRUG DISPENSER TO SWAY PHYSICIANS TO PRESCRIBE MERCK PRODUCTS CONSUMERS AND HEALTH REFORMERS BOTH HAVE A STAKE IN THE OUTCOME TO THE DEGREE THAT INDIVIDUAL MERCK DRUGS ARE THE BEST ON THE MARKET THIS WILL BE BENEFICIAL TO THE DEGREE THAT OTHER DRUGS ARE BETTER THE PUBLIC INTEREST WILL NOT BE SERVED AND IN EITHER EVENT COMPANIES ATTEMPTING TO BRING FORTH COMPETING PRODUCTS WILL BE AT A DISADVANTAGE I WAS AN EARLY TARGET OF PHARMATELEMARKETING THE TECHNIQUE THAT MERCK RIVAL BRISTOLMYERS SQUIBB EXPERIMENTED WITH TO BOLSTER LACKLUSTER SALES OF PRAVACHOL A CHOLESTEROLLOWERING DRUG THE OTHER TWO DRUGS THAT INHIBIT THE SYNTHESIS OF CHOLESTEROL IN THE LIVER ARE MEVACOR AND ZOCOR MADE BY MERCK HERE IS HOW PHARMACISTS EMPLOYED BY MAILORDER DRUG HOUSES WORK WITH DRUG MANUFACTURERS TO INFLUENCE THE PRESCRIPTIONS WRITTEN BY PHYSICIANS A COSTCONTAINMENT PHONE CALL FROM THE OPPOSITE END OF THE NATION DREW ME AWAY FROM A PATIENT WHOSE PUZZLING SYMPTOMS WERE WORRISOME TO THE BOTH OF US IT WAS A MAILORDER DRUG FIRM CHECKING WITH ME BEFORE FILLING A PRESCRIPTION I HAD WRITTEN A WEEK EARLIER FOR MERCK'S MEVACOR WOULDN'T I RATHER CHANGE THAT PRESCRIPTION TO SQUIBB'S PRAVACHOL IN VIEW OF THE FACT THAT SQUIBB HAD NEGOTIATED A SPECIAL PROMOTIONAL PRICE FOR PRAVACHOL WITH THE PATIENT'S HEALTH PLAN IT WILL LOWER THE COST I FOUND IT HARD TO BE POLITE JUST CONSIDER A FEW OF THE HIDDEN AGENDA ITEMS CONCEALED BEHIND THE SIMPLE QUESTION WHO WOULD BENEFIT OSTENSIBLY IT WOULD BE EVERYONE BUT ACTUALLY THE PRIMARY BENEFICIARY WOULD BE THE INSURANCE PLAN BECAUSE THE PATIENT'S INSURANCE WOULD COVER EITHER DRUG REGARDLESS OF PRICE THE MAILORDER HOUSE IS NEXT BECAUSE IT TYPICALLY SHARES IN THE PREFERENTIAL PRICING FURTHERMORE IF I WERE TO AGREE TO THE CHANGE THERE WOULD BE NO GUARANTEE THAT THE LOWER PRICE WOULD REMAIN IN EFFECT FOR ANYTHING LIKE THE YEARS THE DRUG WOULD BE NEEDED AND SUPPOSE THE MAKER OF MEVACOR DECIDED TO LOWER ITS OWN PRICE IN RESPONSE TO THE SQUIBB STRATEGY WOULD I THEN BE ASKED TO SWITCH BACK TO THE ORIGINAL PRESCRIPTION WHAT WOULD I DO IF THE PRAVACHOL PRICE SUDDENLY JUMPED AFTER ENOUGH BUSINESS HAD BEEN LOCKED IN THERE WERE MEDICAL AS WELL AS FINANCIAL QUESTIONS THE TWO DRUGS ARE SIMILAR BUT NOT IDENTICAL WOULD THERE BE SUBTLE DIFFERENCES IN SIDEEFFECTS ALLERGIC POTENTIAL WHAT ABOUT INTERACTION WITH OTHER DRUGS THE PATIENT WAS TAKING THAT IS WHY MERCK'S PLANS TO TURN THE TABLES ON SQUIBB AND OTHERS EMPLOYING SIMILAR TACTICS BY PUTTING A MUCH WIDER RANGE OF PRESCRIPTIONS IN PLAY NOW FILLS ME WITH DISMAY AN AUG 4 WALL STREET JOURNAL ARTICLE ILLUSTRATED A JOINT MARKETING STRATEGY THAT MERCK IS CONSIDERING TO PROMOTE ITS DRUGS WITH THE ASSISTANCE OF MEDCO'S DATABASE AND ITS TEAM OF MORE THAN 1000 PHARMACISTS IT WAS REPORTED THAT ROBERT HILLS A MERCK VICE PRESIDENT CAUTIONED THAT PLANS ARE TENTATIVE PENDING THE DEVELOPMENT OF APPROPRIATE DATA AND OTHER FACTORS BUT HE SAW THE FOLLOWING POSSIBILITIES AMONG OTHERS WHEN FOR EXAMPLE A PRESCRIPTION FOR A URINARY TRACT ANTIBIOTIC COMES IN FOR A MAN OVER 45 THE COMPANY COMPUTER WOULD INFER THE PRESENCE OF EITHER PROSTATIC ENLARGEMENT OR INFLAMMATION AS A CAUSE OF THE INFECTION A PHARMACIST WOULD THEN PHONE THE DOCTOR AND SUGGEST MERCK'S PROSTATESHRINKING PROSCAR AS A COSTEFFECTIVE ALTERNATIVE TO SURGERY I WORRY THAT THIS COULD BE USED TO BOOST SALES OF PROSCAR FOR LESS THAN THE BEST MEDICAL REASONS IT ISN'T MAINLY IGNORANCE AND INERTIA THAT HAVE KEPT SOME PHYSICIANS FROM ENTHUSIASTICALLY ENDORSING PROSCAR MANY WHOM I'VE ENCOUNTERED FEEL THAT PROSCAR DOESN'T DO THAT GOOD A JOB DOESN'T DO IT QUICKLY OR PREDICTABLY HAS TO BE TAKEN INDEFINITELY AND ISN'T CHEAP IT ALSO ISN'T AN ALTERNATIVE TO SURGERY IN MOST CASES PHYSICIANS ARE HESITATING TO ADVISE PROSTATE SURGERY SINCE RECENT OUTCOME STUDIES HAVE SHOWED LESS THAN HOPED FOR BENEFIT AND EVEN SOME HARM WHEN SURGERY IS DONE FOR LESS THAN THE MOST SERIOUS NONCANCEROUS DISEASE CONSEQUENTLY USING PROSCAR MAY ACTUALLY INCREASE COSTS BY ELIMINATING THE NEED FOR SOMETHING THAT MIGHT NEVER HAVE BEEN RECOMMENDED ANOTHER EXAMPLE DIOXIN IS TYPICALLY GIVEN FOR CONGESTIVE HEART FAILURE ON RECEIVING A PRESCRIPTION FOR DIGOXIN MERCK COULD HAVE MEDCO CALL THE DOCTOR TO SUGGEST ADDITIONAL PRESCRIPTIONS FOR A DRUG TO LOWER CHOLESTEROL THEREBY ASSUMING THE BLOCKAGE OF THE HEART ARTERIES WITH CHOLESTEROL CAUSED THE HEART FAILURE AND ANOTHER TO REDUCE CIRCULATORY RESISTANCE WHICH WOULD LIGHTEN THE WORKLOAD OF THE WEAKENED HEART THE IDEA IS USEFUL FOR SOME PATIENTS BUT INAPPROPRIATE FOR OTHERS SUCH AS THOSE TAKING DIGOXIN TO STABILIZE AN ERRATIC HEARTBEAT ANY CRITICISM OF PHARMATELEMARKETING IS LIKELY TO BE MET WITH A REJOINDER THAT THE FINAL DECISION IS ALWAYS THE DOCTOR'S TO MAKE BUT TELLING BUSY DOCTORS THAT THE DECISION IS REALLY IN THEIR HANDS WOULDN'T FULLY OFFSET THE EFFECTS OF HIGHPRESSURE SALESMANSHIP BY PARTIES WITH VESTED INTERESTS THE POTENTIAL FOR ERROR AND MALPRACTICE SUITS IS CONSIDERABLE THERE IS SOMETHING SURREALISTIC ABOUT THIS ENTIRE DISCUSSION CONGRESS HAS ENACTED STRINGENT MEDICAL CONFLICTOFINTEREST LAWS IN RECENT YEARS THE STARK LEGISLATION RESTRICTS PHYSICIANS FROM REFERRING TO FACILITIES LIKE LABORATORIES IN WHICH THEY HAVE AN ECONOMIC INTEREST AS A RESULT OF STARK A LABORATORY MERIS IN WHICH I OWN ONLY A TINY FRACTION OF 1 INTEREST CANNOT BILL MEDICARE FOR ANY OF THE LAB WORK I OR OTHER PHYSICIANS WITH MINUSCULE STAKES HAVE ORDERED IN THE PAST TWO YEARS BY DOING THE TESTS GRATIS THE LAB HAS ABSORBED COSTS IN THE MILLIONS WHILE AWAITING LEGISLATIVE RELIEF YET MERCK WILL BE PERMITTED TO USE MEDCO FIRST TO BIAS DIRECT DRUG SALES AND THEN TO SERVE MERCK INTERESTS IN THE DESIGN OF THE RESTRICTED DRUG FORMULARIES THAT MEDCO PRODUCES FOR SOME 750 HEALTH PLANS THESE INCLUDE HEALTH MAINTENANCE ORGANIZATIONS HMOS THE VERY DELIVERY SYSTEMS THAT ARE FAVORED IN THE CLINTON HEALTH REFORM PROPOSAL IT JUST DOESN'T MAKE SENSE DR ALPER IS A PHYSICIAN IN BURLINGAME CALIF A STORY ON YESTERDAY'S EDITORIAL PAGE HIGHPRESSURE TACTICS RAISE DOCTOR'S PRESSURE MISNAMED A HEART DRUG THAT DRUG IS DIGOXIN 9311170074 931117 BUSINESS BRIEF HOME DEPOT INC THIRDPERIOD NET ROSE 23 ON STRONG SALES EXPANSION HOME DEPOT INC ATLANTA REPORTED THAT FISCAL THIRDQUARTER EARNINGS ROSE 23 ON STRONG SAMESTORE SALES AND EXPANDED OPERATIONS THE HOMEIMPROVEMENT COMPANY'S STOCK PRICE FELL 1875 CLOSING AT 42375 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE INVESTORS ACCORDING TO INDUSTRY ANALYSTS APPEARED TO BE REACTING TO THE FACT THAT THE COMPANY'S RESULTS WERE ABOUT A PENNY BELOW WALL STREET'S EXPECTATIONS FOR THE QUARTER ENDED OCT 31 HOME DEPOT POSTED NET INCOME OF 1034 MILLION OR 23 CENTS A SHARE COMPARED WITH 844 MILLION OR 19 CENTS A SHARE A YEAR EARLIER THE 1993 RESULTS INCLUDE AN ADJUSTMENT OF 4 MILLION OR ONE CENT A SHARE FOR A TAXRATE INCREASE SALES JUMPED 26 TO 232 BILLION FROM 183 BILLION SAMESTORE SALES ROSE 6 9311170073 931117 AFTER HARRIS MORE QUESTIONS ON HARASSMENT BY R GAULL SILBERMAN BARELY TOUCHED ON WERE IMPORTANT AND TROUBLING QUESTIONS NOW BEING GRAPPLED WITH IN THE LOWER COURTS AND IN THE REGULATORY ARENA QUESTIONS THAT ARISE AS NOTIONS OF POLITICAL CORRECTNESS INVADE THE WORKPLACE AS THEY HAVE THE ACADEMY THE COURT LEFT TO ANOTHER DAY A NUMBER OF IMPORTANT QUESTIONS IF SPEECH HARASSES AND THAT HARASSMENT IS IN THE EYES OF THE BEHOLDER HOW CAN WE DRAW A PREDICTABLE LINE BETWEEN WHAT IS PERMISSIBLE AND WHAT IS ILLEGAL SHOULD A DIFFERENT LINE BE DRAWN IN OTHER FORMS OF HARASSMENT WHAT ABOUT THE FIRST AMENDMENT ISSUES MAKING THEIR WAY THROUGH THE LOWER COURTS THOSE QUESTIONS INDICATE JUST HOW MUCH HEAVY LIFTING WE ARE ASKING OF OUR EMPLOYMENT DISCRIMINATION LAWS SMALL WONDER THE COURT DEMURRED THE OPINION IN HARRIS WAS HANDED DOWN WITH ASTONISHING SPEED AND BREVITY FOUR WEEKS FROM THE DATE OF ORAL ARGUMENT AND MERCIFULLY DEVOID OF FOOTNOTES ARCANE LEGAL ARGUMENTS OR POLITICAL AND SOCIOLOGICAL POSTURING ONE WONDERS IF THE ENTHUSIASM WITH WHICH THE DECISION WAS GREETED FROM ALL SIDES OF THE POLITICAL SPECTRUM WAS PROMPTED BY RELIEF THAT SO LITTLE WAS DECIDED OR WAS IT EVIDENCE OF THE STRONG CONSENSUS A DISCIPLINED READING IN THIS AREA OF THE LAW ENJOYS WHEN SEPARATED FROM THE MAELSTROM OF POLITICS TO BE SURE HARRIS WAS IN SOME WAYS AN EASY CASE THE FACTS WERE STRAIGHTFORWARD GIVING LIE TO THE SHIBBOLETH THAT MUCH IS UNKNOWABLE IN A SEXUAL HARASSMENT CASE AND THE PARTIES AGREED THAT THE CONDUCT HAD OCCURRED THE QUESTION THEN WAS WHAT WAS THE LEGAL SIGNIFICANCE OF THE CONDUCT WAS IT AS MS HARRIS'S SUPERVISOR MAINTAINED ONLY JOKING OR DID THE CONDUCT AS HARRIS CLAIMED CREATE AN ABUSIVE WORK ENVIRONMENT THE PARTIES AGREED THAT MS HARRIS HAD COMPLAINED ESTABLISHING THE UNWELCOME NATURE OF THE CONDUCT WELCOMENESS IS CRUCIAL IN THE CONTEXT OF SEXUAL HARASSMENT FROM SEXUAL CONDUCT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION GUIDELINES FIRST AFFIRMED IN 1985 IN MERITOR ESTABLISHED UNWELCOME CONDUCT OF A SEXUAL NATURE AS AN ILLEGAL BARRIER TO EQUAL EMPLOYMENT OPPORTUNITY IN HARRIS THE COURT AGREED TO REVIEW A SIMPLE LEGAL QUESTION MUST A PLAINTIFF SHOW SERIOUS PSYCHOLOGICAL INJURY TO PROVE SEXUAL HARASSMENT BUT WHEN HARRIS V FORKLIFT WAS BRIEFED EVEN THAT ISSUE HAD BEEN RESOLVED WITH BOTH SIDES AGREEING THAT THE PLAINTIFF NEED NOT SHOW PSYCHOLOGICAL INJURY TO PREVAIL WHAT WAS LEFT FOR THE COURT'S DELIBERATIONS ORAL ARGUMENT WAS LIVELY WITH THE COURT FOCUSING ON THE QUESTION OF WHAT CONSTITUTES SEXUAL HARASSMENT MUST THE CONDUCT BE ABUSIVE SIMPLY OFFENSIVE OR CAN IT BE MERELY ANNOYING IS IT ENOUGH THAT THE CONDUCT MAKES IT MORE DIFFICULT TO DO THE JOB OR MUST IT AFFECT WORK PERFORMANCE AND BY WHOSE STANDARDS SHOULD THE CONDUCT BE JUDGED THE REASONABLE PERSON THE REASONABLE WOMAN OR AS THE CHIEF JUSTICE PUCKISHLY PUT IT THE REASONABLE EMPLOYER THE SUPREME COURT REAFFIRMED MERITOR AND THE EEOC'S GUIDELINES ON SEXUAL HARASSMENT TAKING WHAT JUSTICE SANDRA DAY O'CONNOR DESCRIBES AS A MIDDLE PATH BETWEEN MAKING ACTIONABLE ANY CONDUCT THAT IS MERELY OFFENSIVE AND REQUIRING THE CONDUCT TO CAUSE A TANGIBLE PSYCHOLOGICAL INJURY THE COMMISSION'S LONGSTANDING POSITION THAT THE STRONG EMPLOYEE WHO ENDURES SUCH NOXIOUS BEHAVIOR WITHOUT PSYCHOLOGICAL HARM SHOULD NOT BE PENALIZED WAS ADOPTED BY THE COURT AS WAS ITS POSITION THAT THE VICTIM NEED NOT SHOW A TANGIBLE EFFECT ON JOB PERFORMANCE THIS MIDDLE GROUND IS SOLID GROUND ROOTED IN THE STRONG SOCIETAL CONSENSUS THAT SEXUAL HARASSMENT IS WRONG EMPLOYERS HAVE A DUTY TO PROVIDE A WORKPLACE FREE OF SEXUAL HARASSMENT AND THE EMPLOYEE'S DUTY IS TO REPORT THE UNWELCOME NATURE OF SEXUAL CONDUCT MOREOVER BY USING WORDS LIKE PERMEATE SEVERE PERVASIVE HOSTILE AND ABUSIVE THE COURT MAKES CLEAR THAT SEXUAL HARASSMENT IS SERIOUS BUSINESS NOT MERE JOKING OR FLIRTING OR INADVERTENT MISCOMMUNICATION INDEED THE COURT LOOKS AT ALL THE CIRCUMSTANCES TO SEE IF THE ENVIRONMENT IS TRULY HOSTILE OR ABUSIVE TO DETERMINE LIABILITY JUSTICE O'CONNOR CAUTIONS THAT THIS IS NOT AND BY ITS NATURE CANNOT BE A MATHEMATICALLY PRECISE TEST AND THAT THE COURT DOES NOT ANSWER ALL POTENTIAL QUESTIONS THANKFULLY THE COURT SEEMED TO APPLY THE REASONABLE PERSON STANDARD REJECTING BY INFERENCE THE TRENDY POLITICALLY CORRECT REASONABLE WOMAN CONSTRUCT POPULAR IN FEMINIST CRITICAL LEGAL THEORY THAT HAS FOUND ITS WAY INTO SEVERAL LOWER COURT OPINIONS CURIOUSLY THE OPINION STATES THAT THE COURT NEED NOT SPECIFICALLY ADDRESS THE EEOC'S NEW REGULATIONS ON THIS SUBJECT THIS IS CURIOUS BECAUSE THE REGULATIONS ARE ACTUALLY ONLY A NOTICE OF PROPOSED RULEMAKING THE NOTICE WAS ISSUED ON OCT 1 AND SEEKS COMMENT ON WHAT CONSTITUTES ILLEGAL HARASSMENT THE PROPOSED GUIDELINES DO NOT PURPORT TO REPRESENT A CHANGE IN THE COMMISSION'S POSITION ON WORKPLACE HARASSMENT BUT RATHER TO GIVE EQUAL EMPHASIS TO OTHER FORMS OF HARASSMENT GIVEN THE LONGTERM EXISTENCE OF AND RECENT FOCUS ON SEXUAL HARASSMENT GUIDELINES THERE ARE HOWEVER IMPORTANT DIFFERENCES BETWEEN THE EEOC'S PROPOSED GUIDELINES WHICH COVER RACE COLOR NATIONAL ORIGIN GENDER AGE AND DISABILITY AND THE EXISTING SEXUAL HARASSMENT GUIDELINES UNDER THE PROPOSED GUIDELINES HARASSING CONDUCT INCLUDING EPITHETS SLURS NEGATIVE STEREOTYPING OR THREATENING INTIMIDATING OR HOSTILE ACTS AND WRITTEN OR GRAPHIC MATERIAL THAT DENIGRATES OR SHOWS HOSTILITY OR AVERSION TOWARD AN INDIVIDUAL OR GROUP BECAUSE OF A PROHIBITED BASIS WOULD ESTABLISH A HOSTILE ENVIRONMENT CAN AN ARGUMENT BE MADE THAT THIS LANGUAGE MAKES ILLEGAL CONDUCT THAT ACCORDING TO THE HARRIS DECISION MERELY OFFENDS CAN AN ARGUMENT BE MADE THAT THIS LANGUAGE MAY BE IN TENSION WITH THE FIRST AMENDMENT AN ISSUE THAT HAS BEEN RAISED IN SEXUAL HARASSMENT HOSTILE ENVIRONMENT CLAIMS CURRENTLY MAKING THEIR WAY THROUGH THE LOWER COURTS CONCERNS HAVE BEEN EXPRESSED IN THE PRESS THAT THE EEOC'S DEFINITION OF WORKPLACE HARASSMENT IN ITS PROPOSED GUIDELINES FORCES EMPLOYERS TO DO WHAT GOVERNMENT SHOULD NOT AND LEGALLY CANNOT DO PUNISH OFFENSIVE SPEECH IS THE COMMISSION UNWITTINGLY IMPORTING INTO THE WORKPLACE NOTIONS OF POLITICAL CORRECTNESS THAT ARE TEARING OUR UNIVERSITIES ASUNDER THE COMMENT PERIOD FOR THE EEOC'S PROPOSED GUIDELINES CLOSES NOV 30 THOUGH THE SUPREME COURT HAS APPROPRIATELY PUT OFF FOR ANOTHER DAY CONSIDERATION OF THESE DIFFICULT ISSUES FOR THE REST OF US THE TIME IS NOW MS SILBERMAN IS VICE CHAIRMAN OF THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN WASHINGTON 9311170072 931117 LETTERS TO THE EDITOR ALLOW ME TO SOLVE CASE OF THE MISSING SPEAKER YOUR OCT 21 EDITORIAL PAGE INCLUDED A PIECE BY DANIEL CASSE SHADES OF CARTER IN CLINTON HEALTH PLAN THE ARTICLE BEGINS IN FEBRUARY 1980 ARKANSAS GOV BILL CLINTON HOSTED A THREEDAY SUMMIT IN LITTLE ROCK TO PROMOTE PRESIDENT JIMMY CARTER'S ENERGY POLICY IT GOES ON TO SAY EVEN THE KEYNOTE SPEAKER ENERGY SECRETARY CHARLES DUNCAN FAILED TO APPEAR I CALLED MR CASSE INTRODUCED MYSELF AND ASKED WHAT WAS THE SOURCE OF HIS STATEMENT THAT I AS KEYNOTE SPEAKER HAD FAILED TO APPEAR AT THEN GOV CLINTON'S GOVERNORS' CONFERENCE HE TOLD ME IT WAS REFERENCED IN A NEW YORK TIMES ARTICLE OF FEB 3 1980 HE FURTHER STATED THAT HIS ARTICLE AS SUBMITTED TO THE WALL STREET JOURNAL INCLUDED ACCORDING TO A PRESS REPORT IN THE NEW YORK TIMES CHARLES DUNCAN BUT THAT WAS APPARENTLY DELETED BEFORE IT WENT TO PRINT I HAVE SINCE OBTAINED A COPY OF THE NEW YORK TIMES ARTICLE AND MY PURPOSE IN WRITING YOU IS TO SET THE RECORD STRAIGHT IE I HAVE NEVER INDICATED THAT I WOULD BE A KEYNOTE SPEAKER AND THEN SIMPLY FAILED TO APPEAR 9311170070 931117 BUSINESS BRIEF PERFUMANIA INC RETAILER TALKS WITH REVLON ABOUT COMBINING BUSINESSES PERFUMANIA INC'S STOCK ROSE SHARPLY ON ITS ANNOUNCEMENT OF PRELIMINARY DISCUSSIONS WITH REVLON INC CONCERNING A POSSIBLE ALLIANCE IN NASDAQ STOCK MARKET TRADING PERFUMANIA SHARES ROSE 184 OR 1125 TO CLOSE AT 725 PERFUMANIA SAID ITS DISCUSSIONS WITH REVLON INVOLVE A POSSIBLE BUSINESS COMBINATION OF PERFUMANIA WITH REVLON'S PRESTIGE FRAGRANCES AND COSMETICS DIVISION WHICH OPERATES 128 RETAIL OUTLETS IN THE PERFUMANIA ANNOUNCEMENT A REVLON EXECUTIVE SAID REVLON INTENDS TO DIVEST ITS OUTLET STORE BUSINESS INTO A SEPARATE PUBLIC ENTITY AS PART OF THE TRANSACTION BUT A REVLON SPOKESMAN DESCRIBED THE TALKS AS VERY VERY PRELIMINARY PERFUMANIA REPORTED 724 MILLION IN SALES FOR THE YEAR ENDED JAN 31 CHAIRMAN ILIA LEKACH SAID HE EXPECTS SALES TO REACH 100 MILLION IN THE CURRENT FISCAL YEAR 9311170069 931117 BUSINESS BRIEF WABAN INC NET FELL IN OCTOBER QUARTER SPECIAL CHARGE TO BE TAKEN WABAN INC SADDLED WITH PROBLEMS IN ITS HOMEBASE DIVISION REPORTED A 27 DECLINE IN NET INCOME FOR THE FISCAL THIRD QUARTER THE NATICK MASS WAREHOUSE MERCHANDISER ALSO SAID IT WILL TAKE A PRETAX CHARGE OF ABOUT 100 MILLION IN ITS FOURTH QUARTER ENDING JAN 29 1994 TO REPOSITION THE DIVISION IN THE HIGHLY COMPETITIVE HOMEIMPROVEMENT RETAIL MARKET IN THE QUARTER ENDED OCT 30 WABAN EARNED 81 MILLION OR 24 CENTS A SHARE COMPARED WITH 112 MILLION OR 34 CENTS A SHARE THE YEAR BEFORE SALES ROSE 9 TO 8976 MILLION FROM 8206 MILLION WABAN SAID IT PLANS TO CLOSE OR RELOCATE ABOUT 16 HOMEBASE STORES FIVE OF THEM WILL BE SOLD EITHER THROUGH A SALE OR ASSIGNMENT OF LEASE TO HOME DEPOT INC FINANCIAL TERMS WEREN'T DISCLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WABAN CLOSED UNCHANGED AT 12875 9311170067 931117 BUSINESS BRIEF SHOPSMITH INC WOODWORKING STORES' PROFIT FELL IN FISCAL SECOND QUARTER SHOPSMITH INC DAYTON OHIO REPORTED A WIDER LOSS FOR ITS FISCAL SECOND QUARTER PROMPTED BY SPENDING ON IMPROVEMENTS IN THE COMPANY'S NETWORK OF WOODWORKING STORES AND A DECLINE IN SALES VOLUME FOR A KEY PRODUCT LINE THE COMPANY WHICH PRODUCES AND MARKETS WOODWORKING TOOLS REPORTED A LOSS OF 13 MILLION OR 55 CENTS A SHARE FOR THE QUARTER ENDED OCT 2 COMPARED WITH A LOSS OF 349000 OR 15 CENTS A SHARE A YEAR EARLIER THE COMPANY POSTED A LOSS OF 23 MILLION OR 96 CENTS A SHARE FOR THE FIRST HALF COMPARED WITH A LOSS OF 669000 OR 29 CENTS A SHARE A YEAR AGO JOHN FOLKERTH CHIEF EXECUTIVE OFFICER SAID THE COMPANY MADE MAJOR CHANGES IN ITS NETWORK OF STORES IN ANTICIPATION OF A STRONG CHRISTMAS SELLING SEASON THE CHANGES INCLUDED CONVERTING 10 STORES TO A FULLSERVICE FORMAT AND EXPANDING HOURS OF BUSINESS AT ALL LOCATIONS MR FOLKERTH SAID THE FIRM'S LENDING FACILITY HAS BEEN CHANGED TO REDUCE AVAILABLE BORROWINGS UNDER THE WORKING CAPITAL LINE TO 2 MILLION BY DEC 31 9311170066 931117 LETTERS TO THE EDITOR CLINTON'S RADICAL HEALTH PLAN ALICE RIVLIN CLINTON'S CONSERVATIVE HEALTH PLAN EDITORIAL PAGE OCT 20 DESCRIBES THE CLINTON ADMINISTRATION'S HEALTH CARE PLAN AS A SYSTEM IN WHICH MARKETBASED INCENTIVES CONTROL HEALTH CARE COSTS AND THE MAJOR FUNDING IS PROVIDED FROM COSTSAVINGS THIS BEARS LITTLE RESEMBLANCE TO THE 239PAGE DRAFT PLAN CIRCULATING AROUND WASHINGTON MS RIVLIN SAYS CLINTON CHOSE MARKET SOLUTIONS OVER GOVERNMENTSET HEALTH CARE PRICES TRUE THE GOVERNMENT WOULD SET NO PRICES BUT INSTEAD WOULD GIVE REGIONAL HEALTH CARE ALLIANCES BROAD AUTHORITY TO DO THE SAME THE STATEMENT THAT A PROVIDER MAY NOT CHARGE OR COLLECT FROM A PATIENT A FEE IN EXCESS OF THE FEE SCHEDULE ADOPTED BY AN ALLIANCE PG 62 OF THE PLAN SOUNDS VERY MUCH LIKE PRICESETTING THE ALLIANCES WOULD ALSO SET HEALTH INSURANCE PRICES AND FORBID COMPETITION THEY NEGOTIATE PREMIUM RATES WITH EACH HEALTH PLAN CONTRACTING FOR COVERAGE THROUGH THAT ALLIANCE PG 74 NO HEALTH PLAN INSURER OR PROVIDER MAY OFFER ANYONE ELIGIBLE FOR THE GUARANTEED BENEFIT PACKAGE A SUPPLEMENTAL INSURANCE POLICY THAT DUPLICATES COVERAGE IN THE NATIONAL BENEFIT PACKAGE ANY HEALTH PLAN THAT SELLS DUPLICATE COVERAGE IS DISQUALIFIED FROM PARTICIPATING IN THE ALLIANCES ANY FIRM OR INDIVIDUAL WHO OFFERS SUCH POLICIES IS SUBJECT TO THE LOSS OF LICENSE TO SELL INSURANCE PG 81 THIS LIMITATION ON COMPETITION IS A RADICAL DEPARTURE FROM CURRENT POLICY SIMILARLY THE ALLIANCES WOULD HAVE THE POWER TO ELIMINATE ANY PLAN WHOSE PREMIUM EXCEEDS THE AVERAGE ALLIANCE PREMIUM BY MORE THAN 20 OR CAUSES THE ALLIANCE TO EXCEED ITS BUDGET WHOSE LEVEL OF SERVICE IS DEEMED UNSATISFACTORY WHOSE PRACTICES ARE DEEMED TO BE DISCRIMINATORY OR WHICH FAILS TO COMPLY WITH THE CONTRACT REQUIREMENTS PGS 6061 THE PLAN WOULD ALLOW EACH ALLIANCE TO ELIMINATE ALL INSURANCE PLANS BUT THE BASIC HMO MS RIVLIN IS CORRECT IN WRITING THAT THE HEALTH CARE PLAN WOULD ASSURE EVERYONE OF A STANDARD SET OF BENEFITS BUT EVERYONE DOES NOT NEED AND MAY NOT WANT TO PAY FOR MENTAL HEALTH AND SUBSTANCE ABUSE SERVICES PREGNANCYRELATED AND FAMILY PLANNING SERVICES HOSPICES AND HOME HEALTH CARE AND VISION AND HEARING CARE ALL OF WHICH ARE INCLUDED IN THE STANDARD BENEFITS PACKAGE THE PLAN WOULD ALSO MANAGE THE SUPPLY OF PHYSICIANS AFTER A FIVEYEAR PHASEIN PERIOD AT LEAST 50 OF NEW PHYSICIANS ARE TRAINED IN PRIMARY CARE RATHER THAN IN THE SPECIFIC SPECIALTY FIELDS IN WHICH AN EXCESS SUPPLY CURRENTLY EXISTS PG 125 RATHER THAN THE CURRENT SYSTEM IN WHICH HOSPITALS SELECT MEDICAL RESIDENTS FROM APPLICANT POOLS THE SECRETARY OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WOULD DETERMINE THE NUMBER OF TRAINING POSITIONS IN EACH SPECIALTY AND 10 REGIONAL COUNCILS WOULD DISTRIBUTE THE POSITIONS TO INDIVIDUAL RESIDENCY PROGRAMS THROUGHOUT THE COUNTRY PGS MS RIVLIN'S DESCRIPTION OF THE COSTSAVINGS FROM THE PLAN CONTAINS A CENTRAL INCONSISTENCY EMPLOYERS ARE GOING TO BE ASKED TO DO MORE AND PAY FOR MORE THAN EVER BEFORE YET THE ADMINISTRATION NAIVELY ASSERTS THAT WAGES AND TAX REVENUES ARE LIKELY TO RISE WITH THE PLAN'S IMPLEMENTATION EMPLOYERS WOULD BE REQUIRED TO PAY FOR MOST OF THE HEALTH INSURANCE PREMIUMS FOR THEIR CURRENTLY COVERED WORKERS MOREOVER THEY WOULD BE ASKED TO BEAR NEW COSTS FOR MILLIONS OF PEOPLE WHO ARE NOW UNINSURED AND FOR THE WORKING POOR AND WORKING ELDERLY NOW COVERED BY MEDICAID AND MEDICARE FURTHERMORE NEW PRESCRIPTION DRUG AND HOME HEALTH CARE BENEFITS UNDER MEDICARE WOULD BE PROVIDED TO MEDICARE RECIPIENTS THIS WOULD EXPAND THE DEMAND FOR HEALTH SERVICES BECAUSE PREVIOUSLY UNCOVERED INDIVIDUALS WOULD RECEIVE NEW BENEFITS THE COST OF MANDATED INSURANCE BENEFITS WOULD RISE TO PAY FOR THE INCREASED COSTS FIRMS WOULD REDUCE WAGES BUT MS RIVLIN ASSERTS THE OPPOSITE THAT TOTAL WAGES AND TREASURY TAX REVENUES ARE LIKELY TO RISE WITH THE HEALTH PLAN'S IMPLEMENTATION THIS ASSUMES THAT EVEN AFTER INCREASED COVERAGE FOR MILLIONS OF ADDITIONAL INDIVIDUALS EMPLOYERS' AGGREGATE HEALTH INSURANCE PREMIUMS WOULD DECLINE RESULTING IN AN OFFSETTING INCREASE IN WAGES A MORE COMMON ASSUMPTION IS THAT MANDATED BENEFITS CAUSE WAGES TO FALL SOME FIRMS CURRENTLY MAY HAVE HEALTH PLANS THAT COST THEM MORE THAN 79 OF PAYROLL AND THEREFORE A SWITCH TO THE ADMINISTRATION'S PLAN COULD REDUCE THEIR COSTS OF OPERATIONS THESE FIRMS MIGHT AS MS RIVLIN SUGGESTS COMPENSATE THEIR EMPLOYEES BY INCREASING WAGES IF THE FIRMS WERE REQUIRED ONLY TO PAY FOR THE HEALTH COSTS OF THEIR EMPLOYEES BUT FIRMS WOULD BE REQUIRED TO PAY THE HEALTH INSURANCE COSTS OF LARGE POPULATIONS THEY DO NOT EMPLOY THE COSTS OF NEW COVERAGE WILL CERTAINLY OFFSET AND MAY DWARF ANY SAVINGS FURTHERMORE THE SUBSIDIES TO THE SMALL FIRMS ARE NOT COSTLESS BUT NOWHERE IN THE PLAN IS THE REVENUE SOURCE SPECIFIED OF COURSE REVENUES WILL COME FROM HIGHER TAXES WHICH WILL FURTHER REDUCE AFTERTAX WAGES 9311170065 931117 FINANCING BUSINESS ALLIED CAPITAL CORP ALLIED CAPITAL CORP WASHINGTON A SMALL BUSINESS INVESTMENT COMPANY SAID IT WILL DELAY ITS FOURTHQUARTER DIVIDEND AND EXTRA DISTRIBUTION UNTIL IT COMPLETES A PREVIOUSLY ANNOUNCED INITIAL OFFERING OF ITS LENDING SUBSIDIARY ALLIED CAPITAL LENDING CORP A SPOKESWOMAN SAID THE OFFERING MAY BE COMPLETED NEXT WEEK AND THE ALLIED BOARD WILL CONSIDER THE PAYOUTS AT ITS DECEMBER MEETING 9311170064 931117 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY WASTED ABOUT 130 MILLION LAST YEAR BECAUSE OF BAD FINANCIAL MANAGEMENT BY THE EC COMMISSION AND MEMBER STATES AND FRAUD THE TRADE BLOC'S COURT OF AUDITORS SAID THE EC ANNUALLY SPENDS 79 BILLION AND SENDS BIG CHUNKS OF THAT MONEY FOR FARM PRODUCTION DEVELOPMENT OF POORER REGIONS RESEARCH AND DEVELOPMENT AND AID TO DEVELOPING COUNTRIES THE EC WATCHDOG CITED FRAUD BY FARMERS ESPECIALLY IN THE HEMP AND COTTON SECTORS AND FUNDING OF INELIGIBLE REGIONAL SOCIAL AND DEVELOPMENT PROGRAMS OFTEN THROUGH NATIONAL AGENCIES IT ALSO FOUND THAT UNSPENT MONEY HADN'T BEEN RETURNED TO THE EC BECAUSE OF COMPLEX RULES MOREOVER THE EC GAVE UNNECCESSARY AND INAPPROPRIATE HUMANITARIAN AID TO RUSSIA THE AUDITORS SAID IN ITS RESPONSE THE EC COMMISSION SAID IT WAS WORKING TO TIGHTEN PROCEDURES AND IMPROVE CONTROLS BUT IT OBJECTED TO SOME OF THE AUDITORS' CRITICISMS AS UNWARRANTED JUDGMENTS ABOUT PROGRAMS' POLITICAL ORIENTATION UNDER EC POLICIES TO COMBAT THE SPREAD OF AIDS CHINA WILL SET UP TWO NATIONAL SURVEILLANCE CENTERS TO CONDUCT BLOOD TESTS AND PROVIDE TECHNICAL HELP TO HEALTH DEPARTMENTS NATIONWIDE THE CENTERS WILL BE IN GUANGDONG AND YUNNAN PROVINCES IN SOUTHERN CHINA WHERE MOST OF THE COUNTRY'S REPORTED AIDS CASES HAVE BEEN CONCENTRATED AS OF MAY 1106 PEOPLE HAD TESTED POSITIVE FOR THE VIRUS THAT CAUSES AIDS AUTHORITIES FEAR THAT PROSTITUTION AND DRUG ABUSE COULD CAUSE AN AIDS EPIDEMIC IN THE COUNTRY OF 11 BILLION PEOPLE MANY OF WHOM KNOW LITTLE ABOUT AIDS OR ITS PREVENTION MOSCOW AUTHORITIES CLOSED THE LENIN MUSEUM IN WHAT COULD BE A PRELUDE TO REMOVING THE EMBALMED BODY OF THE SOVIET STATE FOUNDER FROM A MAUSOLEUM IN NEARBY RED SQUARE RUSSIAN PRESIDENT BORIS YELTSIN AGREED TO TRANSFER THE 90YEAROLD BUILDING THE MUSEUM'S HOME SINCE 1936 TO THE STATE PROPERTY FUND THE STRUCTURE COULD BE USED AS A SEAT FOR THE CITY COUNCIL SINCE THE MUSEUM LOST STATE FINANCING FOLLOWING A FAILED COUP IN AUGUST 1991 IT SURVIVED BY RENTING SOME OF ITS SPACE TO A COMPANY ARMENIA WILL BE THE 14TH FORMER SOVIET REPUBLIC TO SCRAP THE RUSSIAN RUBLE WHEN IT INTRODUCES ITS OWN CURRENCY THE DRAM NEXT WEEK AN EXCHANGE RATE HASN'T BEEN SET THE MOVE LEAVING ONLY TAJIKISTAN USING OLDER RUBLES THAT AREN'T VALID IN RUSSIA IS AIMED AT STOPPING RUBLES FROM POURING INTO ARMENIA FROM COUNTRIES SUCH AS KAZAKHSTAN AND UZBEKISTAN WHICH ISSUED THEIR OWN CURRENCIES THIS WEEK AFTER THE COLLAPSE OF A PACT FOR A RUBLEBASED MONETARY UNION WITH RUSSIA OLD RUBLES FLOODED INTO THE FOUR COUNTRIES FROM REPUBLICS THAT HAVE ADOPTED NEW CURRENCIES JAPAN DRAFTED A PLAN TO ENCOURAGE LIFESTYLES FRIENDLY TO THE ENVIRONMENT THE CAMPAIGN IS IN LINE WITH GOALS OF LAST YEAR'S UNITED NATIONSLED EARTH SUMMIT AIMED AT SUSTAINABLE DEVELOPMENT THAT CAUSES THE FEWEST ENVIRONMENTAL PROBLEMS JAPAN INTENDS TO CONTRIBUTE TO SETTING UP AN INTERNATIONAL LEGAL FRAMEWORK ON CONSERVATION AND TO JOIN EFFORTS TO IMPROVE FINANCING FOR CONSERVATION WORK ESPECIALLY IN DEVELOPING COUNTRIES IT ALSO WILL PROMOTE DEVELOPMENT OF ENVIRONMENTRELATED TECHNOLOGY AND TECHNOLOGY TRANSFERS TO PROTEST THE TAIWAN GOVERNMENT'S CRACKDOWN ON MASSAGE PARLORS ABOUT 3000 PEOPLE MOST OF THEM WOMEN MARCHED IN TAIPEI THEY PETITIONED PARLIAMENT SAYING 200000 JOBS ARE THREATENED AND THAT TAIWAN'S 200 BLIND MASSEUSES CAN'T MEET DEMAND ONLY BLIND PEOPLE CAN LEGALLY GIVE MASSAGES FOR MONEY BUT THE LAW IS WIDELY IGNORED ESPECIALLY IN TAIWAN'S 3000 BARBER SHOPS WHICH DOUBLE AS MASSAGE PARLORS NEWSPAPERS SAID THAT PERHAPS 90 OF BARBER SHOPS EMPLOY SIGHTED MASSEUSES AND THAT MANY SELL SEX THE GOVERNMENT IS CUTTING OFF SOME OF THESE BARBER SHOPS' ELECTRICITY AND WATER THAILAND'S AVIATION AGENCY DETAILED PLANS FOR A SECOND INTERNATIONAL AIRPORT TO BE BUILT NEAR BANGKOK FOR 423 BILLION THE EXISTING AIRPORT JUST NORTH OF THE CAPITAL CAN HANDLE 25 MILLION PASSENGERS A YEAR THE NEW AIRPORT 124 MILES EAST OF BANGKOK IN SAMUT PRAKARN PROVINCE IN AN AREA ONCE CALLED COBRA SWAMP WILL EVENTUALLY ACCOMMODATE 100 MILLION PASSENGERS AND 64 MILLION TONS OF CARGO A YEAR AND 106 LANDINGS AND DEPARTURES AN HOUR PLANNING AND AIRPORT DESIGN WORK AND A STUDY OF ENVIRONMENTAL EFFECTS AND RELOCATION OF AREA RESIDENTS HAVE BEGUN AND ARE TO BE COMPLETED IN OCTOBER 1995 A MONTH LATER CONSTRUCTION IS SCHEDULED TO START AND COULD TAKE FIVE YEARS TO COMPLETE THE NEW AIRPORT WILL BEGIN OPERATING WITH INITIAL ANNUAL CAPACITY OF 30 MILLION PASSENGERS AND 15 MILLION TONS OF CARGO AND SERVE 41 AIRCRAFT MOVEMENTS AN HOUR AUSTRIA LIFTED ECONOMIC SANCTIONS AGAINST SOUTH AFRICA CITING PROGRESS IN ENDING ITS SYSTEM OF RACIAL SEPARATION BUT MAINTAINED A BAN ON EXPORTS OF ARMS AND NUCLEAR MATERIALS THE FIRST TICKETS FOR PASSAGE THROUGH THE TUNNEL UNDER THE ENGLISH CHANNEL WILL GO ON SALE JAN 12 FOUR MONTHS BEFORE THE TRAIN TUNNEL BETWEEN FRANCE AND BRITAIN OPENS TO PASSENGERS MAY 6 FARES HAVEN'T BEEN SET BUT WILL BE SIMILAR TO THOSE FOR CHANNEL FERRY TRIPS 9311170062 931117 BUSINESS BRIEF GRAND CASINOS INC AGREEMENT REACHED TO BUY 33 STAKE IN STRATOSPHERE GRAND CASINOS INC SAID IT AGREED TO BUY A 33 STAKE IN LAS VEGASBASED STRATOSPHERE CORP FOR 21 MILLION CLOSELYHELD STRATOSPHERE IS BUILDING A 1012FOOTTALL OBSERVATION TOWER ON THE LAS VEGAS STRIP WHICH IS SLATED FOR COMPLETION IN LATE 1994 GRAND CASINOS MINNEAPOLIS SAID IT HAS AN OPTION TO BUY A CONTROLLING INTEREST IN STRATOSPHERE AND THAT IT HAS A SEPARATE OPTION TO ACQUIRE A MAJORITY INTEREST IN THE ADJACENT VEGAS WORLD HOTELCASINO THE GAMBLING CONCERN ALSO SAID IT PUSHED BACK THE OPENING OF ITS BILOXI MISS CASINO TO JAN 17 FROM DEC 27 GRAND CASINOS CITED CONSTRUCTION CHANGES AND DIFFICULTY GETTING APPROVAL FROM REGULATORS IN TIME TO OPEN BEFORE JANUARY 9311170061 931117 BUSINESS BRIEF NEWMONT MINING CORP GOLD PROJECT IN UZBEKISTAN IS BACKED BY 105 MILLION NEWMONT MINING CORP DENVER SAID ITS JOINT VENTURE IN UZBEKISTAN HAS RECEIVED 105 MILLION IN FINANCING FOR ITS PLANNED GOLD PROJECT IN THAT FORMER SOVIET REPUBLIC NEWMONT SAID 525 MILLION OF THE FINANCING WAS ARRANGED BY THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AND BARCLAYS BANK PLC THE OTHER 525 MILLION WAS RAISED FROM COMMERCIAL LENDERS IN THE US ENGLAND SWITZERLAND GERMANY FRANCE AND AUSTRIA ZARAFSHANNEWMONT JOINT VENTURE HAS BEGUN CONSTRUCTION OF A GOLD RECOVERY FACILITY THAT WILL DRAW GOLD THROUGH HEAP LEACHING FROM LOWGRADE ORE THAT HAS BEEN STOCKPILED OVER THE PAST 20 YEARS NEWMONT HOLDS 50 OF THE JOINT VENTURE THE UZBEK GOVERNMENT MINING AGENCY AND NAVOI MINING AND METALLURGICAL COMBINAT HOLD THE OTHER HALF THE PROJECT IS BASED AT THE MURUNTAU GOLD MINE WHICH PRODUCES 18 MILLION OUNCES A YEAR BY MILLING HIGHGRADE ORE BEFORE THE JOINT VENTURE WITH NEWMONT THE MINE OPERATORS DIDN'T HAVE THE TECHNOLOGY TO HEAP LEACH THE LOWERGRADE ORES THAT HAVE BEEN STOCKPILED HEAP LEACHING IS A LOWCOST METHOD OF CHEMICALLY RECOVERING FINELY DISSEMINATED GOLD FROM ORE 9311170059 931117 CREDIT RATINGS GTE CORP STAMFORD CONN MOODY'S INVESTORS SERVICE INC SAID IT LOWERED THE LONGTERM CREDIT RATINGS OF GTE FLORIDA A UNIT OF GTE CORP INCLUDING ITS FIRST MORTGAGE BONDS TO SINGLEA1 FROM DOUBLEA3 ABOUT 135 BILLION OF DEBT IS AFFECTED MOODY'S SAID IT EXPECTS THAT GTE FLORIDA WILL BE UNABLE TO FULLY OFFSET THE EFFECTS OF LOWERED NETWORK ACCESS AND TOLL RATES COST REDUCTIONS INCREASED NETWORK USAGE AND INTRODUCTION OF NEW PRODUCTS AREN'T LIKELY TO OFFSET PRESSURES ON CASH FLOW IT ADDED THE ANNOUNCEMENT ALSO SAID GTE FLORIDA FACES INCREASED MARKETING COSTS AND ITS 1993 FINANCIAL PERFORMANCE WILL BE IMPACTED BY ONETIME CHARGES FOR REFINANCING AND EMPLOYEE REDUCTIONS 9311170058 931117 DIVIDEND NEWS FIDELITY NATIONAL FINANCIAL INC FIDELITY NATIONAL FINANCIAL INC IRVINE CALIF SAID ITS BOARD APPROVED A 3FOR2 COMMONSTOCK SPLIT AND RAISED ITS QUARTERLY DIVIDEND BY 5 ON A POSTSPLIT BASIS THE NEW SHARES WILL BE DISTRIBUTED DEC 23 TO STOCK OF RECORD DEC 8 AND FRACTIONAL SHARES WILL BE PAID IN CASH THE TITLEINSURANCE CONCERN CURRENTLY HAS 99 MILLION SHARES OUTSTANDING THE BOOSTED QUARTERLY DIVIDEND WHICH WILL BE SEVEN CENTS A SHARE WILL BE PAID FEB 4 TO POSTSPLIT STOCK OF RECORD JAN 11 IN SEPTEMBER THE COMPANY RAISED ITS DIVIDEND BY 25 TO 10 CENTS A SHARE FROM EIGHT CENTS A SHARE 9311170057 931117 RULES ARE PROPOSED FOR USE OF RANKINGS IN MUTUALFUND ADS A WALL STREET JOURNAL NEWS ROUNDUP MUCH OF THE HYPE IN MUTUALFUND ADVERTISEMENTS WOULD BE BLOCKED BY NEW RULES PROPOSED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE RULES PROPOSED BY THE ASSOCIATION WHICH IS THE SECURITIES INDUSTRY'S SELFREGULATORY BODY ADDRESSES GROWING CRITICISM OF THE USE OF RANKINGS IN FUND ADS SEPARATELY PILGRIM GROUP A MUTUALFUND ADVISER IN LOS ANGELES SAID IT RECEIVED A COMPLAINT FROM THE NASD RELATING TO TWO OF ITS ADS THE PROPOSED RULES WOULD APPARENTLY PRECLUDE SOME COMMON ADVERTISING PRACTICES THE RULES WOULD PROHIBIT ADS OR SALES BROCHURES FROM CITING A STOCK OR BOND FUND'S RANKING FOR A PERIOD SHORTER THAN ONE YEAR CURRENTLY FUND ADS OFTEN CITE RANKINGS BASED ON A SINGLE QUARTER THE RULES WOULD ALSO REQUIRE FUNDS TO GIVE THE CONTEXT FOR THE RANKINGS THEY QUOTE THE CONTROVERSY OVER THE USE OF RANKINGS IN FUND ADS BLOSSOMED WHEN PILGRIM THE FUND ADVISER SUED MORNINGSTAR INC A CHICAGO PUBLISHER OF A FUND NEWSLETTER AFTER THE NEWSLETTER CRITICIZED SOME PILGRIM ADS SAYING THEY USED RANKINGS IN A MISLEADING WAY PILGRIM MAINTAINS THE ADS WEREN'T MISLEADING THE CASE IS PENDING IN CALIFORNIA STATE COURT PILGRIM'S CHAIRMAN PALOMBA WEINGARTEN SAID THE PROPOSED GUIDELINES ARE GOOD CHANGES AND WE SUPPORT THEM SHE ASSERTED THAT PILGRIM'S ADS WOULD BE PERMITTED UNDER THE RULES PILGRIM'S GENERAL COUNSEL SAID THE FIRM IS REVIEWING THE NASD COMPLAINT AND IS PREPARING A RESPONSE THE PROPOSED RULES ARE SUBJECT TO THE APPROVAL OF THE SECURITIES AND EXCHANGE COMMISSION AFTER A PERIOD FOR PUBLIC COMMENT 9311170056 931117 MARKETING & MEDIA ADVERTISING EMI MARKETS SINATRA'S ALBUM WITH THE CHAIRMAN OF THE BOARD' BY KEVIN GOLDMAN IT ISN'T UNUSUAL FOR A CORPORATION TO USE ITS CHAIRMAN AS A PITCHMAN IN COMMERCIALS NOW IN AN UNUSUALLY AGGRESSIVE ADVERTISING CAMPAIGN CAPITOL RECORDS IS MARKETING THE CHAIRMAN OF THE BOARD EMI MUSIC'S CAPITOL RECORDS IS MARKETING FRANK SINATRA'S NEW ALBUM DUETS WITH TELEVISION ADS BUT ISN'T PLACING THE HALFMINUTE SPOTS ON NETWORKS USUALLY USED BY THE MUSIC INDUSTRY SUCH AS VIACOM'S MTV AND VH1 INSTEAD CAPITOL IS PUTTING ITS MARKETING MUSCLE ON THE LATENIGHT SHOWS ON THE THREE MAJOR BROADCAST NETWORKS AS WELL AS CNN ARTS & ENTERTAINMENT AND E ENTERTAINMENT TELEVISION ON CABLE ADDITIONALLY CAPITOL IS PLACING ADS IN NEWS MAGAZINES WITH AN 800NUMBER FOR CONSUMERS TO ORDER THE DISK DIRECTLY FROM THE COMPANY THE ADS DON'T FEATURE MR SINATRA HIMSELF HOWEVER INSTEAD THE SPOT SHOWS TWO STOOLS WITH A SNAPBRIM HAT RESTING ON ONE TO SYMBOLIZE THE LEGENDARY SINGER A VOICEOVER SAYS THE WORLD'S GREATEST MUSICAL TALENTS TAKE THEIR SEATS ALONGSIDE THE CHAIRMAN OF THE BOARD FOR THE RECORDING EVENT OF THE DECADE THE UNCOMMON ADVERTISING CAMPAIGN IS AN ATTEMPT TO SOLVE AN INCREASINGLY DIFFICULT PROBLEM HOW TO REACH CONSUMERS WHO NO LONGER FREQUENT RECORD STORES MARKETING RESEARCH BY CAPITOL SHOWS THAT A MAJORITY OF POTENTIAL BUYERS OF THE SINATRA RELEASE HIS FIRST STUDIO ALBUM SINCE LA IS MY LADY IN 1984 WOULDN'T VISIT A RECORD STORE TO MAKE A PURCHASE RECORD COMPANY EXECUTIVES SAY THEY WILL NO LONGER RELY ON ONLY RADIO STATION AIR PLAY ADVERTISING ON MTV OR THE HOPE THAT A CONSUMER WILL PURCHASE THEIR PRODUCT WHILE BROWSING IN A RECORD STORE INSTEAD COMPANIES SAY THEY WILL USE ADVERTISING ON BROADCAST AND CABLE NETWORKS TO GET THE WORD OUT ABOUT SPECIFIC ALBUMS AND 800NUMBERS TO MAKE IT EASIER FOR THE CONSUMER TO BUY THE DISK FOR EXAMPLE ARISTA RECORDS A SUBSIDIARY OF BERTELSMANN AG PRODUCED A HALFHOUR TELEVISION SHOW ARISTA GALLERY OF STARS 1994 STARRING WHITNEY HOUSTON ACE OF BASE HADDAWAY AND TONI BRAXTON THAT WILL BE DISTRIBUTED TO TELEVISION STATIONS THROUGH SYNDICATION BY NEW LINE TELEVISION NEXT MONTH RECORD COMPANIES HAVE TO LOOK FOR DIFFERENT WAYS OF REACHING THEIR AUDIENCE AND TO GET THE MUSIC TO THEM SAYS JACK ROVNER SENIOR VICE PRESIDENT OF MARKETING AT ARISTA THE ARISTA SHOW WHICH HAS BEEN SOLD TO STATIONS COVERING 70 OF THE COUNTRY INCLUDING NEW YORK LOS ANGELES AND CHICAGO INCLUDES INTERVIEWS VIDEOS AND CONCERT FOOTAGE IT IS UNUSUAL IN THAT IT REALLY IS A HALFHOUR COMMERCIAL FOR ARISTA ARTISTS BUT UNLIKE THE USUAL INFOMERCIAL THE ARISTA PROGRAM WILL RUN 22 1/2 MINUTES WITH THE BALANCE RESERVED FOR WELL COMMERCIALS MR ROVNER SAYS ARISTA ALSO IS TRYING ADVERTISING ON SHOWS THAT AREN'T USUALLY THOUGHT OF WHEN IT COMES TO RECORDS FOR INSTANCE IT ADVERTISED A NEW RELEASE FROM MS HOUSTON ON ABC'S GOOD MORNING AMERICA BECAUSE THE EARLYMORNING SHOW ATTRACTS THE 25PLUS FEMALE DEMOGRAPHIC FOR DUETS CAPITOL CLEARLY COULDN'T RELY ON RECORDSTORE MARKETING ALONE THE 45PLUS GENERATION THE AGE GROUP MOST LIKELY TO PURCHASE DUETS ACCOUNTS FOR ONLY 123 OF THOSE WHO SHOP IN RECORD STORES ACCORDING TO A 1992 STUDY FROM THE RECORDING INDUSTRY ASSOCIATION OF AMERICA FOR THE SINATRA PROJECT CAPITOL FORMED A TASK FORCE THAT MET DAILY TO DISCUSS HOW TO MARKET THE ALBUM IN WHICH MR SINATRA SINGS FAMILIAR SONGS AND IS TEAMED WITH OTHER WELLKNOWN SINGERS SUCH AS BARBRA STREISAND AND BONO FROM THE ROCK GROUP U2 JONATHAN SCHWARTZ A NEW YORK RADIO PERSONALITY WHO HOSTS A WEEKLY SHOW FEATURING ONLY RECORDINGS BY MR SINATRA SAYS THE EXPECTATIONS WERE HIGH FOR THIS ALBUM AND TELEVISION COMMERCIALS WERE PLACED ON SHOWS OF HIGH STATURE THAT UNDERSCORED THE HIGH EXPECTATIONS FOR THE PROJECT CAPITOL BOUGHT COMMERCIAL TIME LAST WEEK ON THE LATENIGHT SHOWS OF THE THREE MAJOR BROADCAST NETWORKS AND HAD THE SPOT AIRED PRACTICALLY SIMULTANEOUSLY A PRACTICE KNOWN IN THE INDUSTRY AS A MEDIA ROADBLOCK THE AD CAMPAIGN AND GENERAL BUZZ APPARENTLY WORKED THE ALBUM SHOT UP TO NO 2 ON THE BILLBOARD TOP 200 CHART THIS WEEK AND ONE MILLION UNITS HAVE BEEN SHIPPED CAPITOL DECLINES TO RELEASE SALES FIGURES MR KIRKLAND SAYS CAPITOL IS ADVERTISING ON TELEVISION PARTLY BECAUSE DUETS IS RECEIVING VERY LITTLE AIR PLAY ON RADIO THAT'S A BIG DISAPPOINTMENT THE ALBUM IT SEEMS DOESN'T FIT MOST STATIONS' FORMATS HE SAYS ONE NEW YORK RADIO STATION THAT IS PLAYING THE ENTIRE ALBUM WQEW PLACED A NEWSPAPER AD YESTERDAY THAT SAID SINATRA DUETS WHERE ELSE WARREN BODOW THE STATION'S PRESIDENT SAYS THE ALBUM IS THE TALK OF THE INDUSTRY SO WHY NOT CALL ATTENTION TO THE FACT WE'RE PLAYING ALL OF IT BUT CAPITOL HOPES TO GET ADDITIONAL PROMOTION FROM NEW VIDEOS FEATURING MR SINATRA AND BONO SINGING I'VE GOT YOU UNDER MY SKIN MR KIRKLAND SAYS CAPITOL IS NEGOTIATING WITH SEVERAL TELEVISION NETWORKS TO LAUNCH THE VIDEO AS A MAJOR EVENT BUT DECLINES TO ELABORATE THE SINATRA TELEVISION SPOTS WERE CREATED BY CAPITOL AND A SMALL LOS ANGELES AGENCY QUICK ON THE DRAW AND NEEDED APPROVAL FROM MR SINATRA'S STAFF ALONG THE WAY NEW TELEVISION ADS WERE COMPLETED THIS WEEK THAT PROVIDE THE 800NUMBER AT THE END THE ADS ARE RUNNING WORLDWIDE ONE REASON NO FACES APPEAR IN THE AD IS SO DIFFERENT SELECTIONS FROM THE ALBUM COULD RUN IN DIFFERENT COUNTRIES BONO'S PAIRING WITH MR SINATRA COULD RUN IN THE UNITED KINGDOM FOR INSTANCE SAYS ALEX PEACOCK A DIRECTOR OF THE AGENCY'S LONDON PARENT USING TRADITIONAL METHODS OF ADVERTISING IS SOMETHING OF A RUDE AWAKENING FOR RECORD COMPANIES WHICH ARE USED TO GETTING THEIR PROMOTIONS FOR FREE THROUGH RADIO AIRPLAY NOTHING REPLACES AIRPLAY SAYS MR KIRKLAND BUT WE'RE NOW SPENDING MORE TIME ON REAL TRADITIONAL MARKETING NEXT YEAR CAPITOL IS EXPECTED TO HAVE ANOTHER MAJOR MARKETING PUSH THIS TIME FOR MR SINATRA'S SEQUEL TO DUETS ACCORDING TO RECORDING INDUSTRY OFFICIALS MR SINATRA ALREADY RECORDED THE SONGS INCLUDING I THOUGHT ABOUT YOU FUNNY VALENTINE AND THAT'S LIFE ONE POSSIBILITY ROCK AND ROLLER BRUCE SPRINGSTEEN MAY PROVIDE VOCALS FOR ONE OF MR SINATRA'S BEST KNOWN SONGS MY WAY CONSIDER THE MARKETING POSSIBILITIES THE CHAIRMAN OF THE BOARD MEETS THE BOSS KETCHUM COMMUNICATIONS NAMED TWO VICE CHAIRMEN TO OVERSEE OPERATIONS AT THE PITTSBURGH ADVERTISING AND PUBLIC RELATIONS COMPANY JAN HEDQUIST THE 46YEAROLD PRESIDENT OF KETCHUM'S PITTSBURGH ADVERTISING OFFICE WAS NAMED VICE CHAIRMAN OVERSEEING WORLDWIDE ADVERTISING OPERATIONS THE APPOINTMENT COMES FIVE MONTHS AFTER KETCHUM'S FORMER HEAD OF ADVERTISING BOB KROYER ABRUPTLY LEFT THE AGENCY AFTER A DISPUTE WITH CHAIRMAN PAUL ALVAREZ MR HEDQUIST'S SUCCESSOR WASN'T NAMED DAVID DROBIS THE 52YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KETCHUM'S PUBLIC RELATIONS OPERATIONS ALSO WAS NAMED VICE CHAIRMAN HE CONTINUES TO OVERSEE THE COMPANY'S PR OPERATIONS AND ADDS RESPONSIBILITY FOR ITS YELLOW PAGES ADVERTISING AND HEALTHINDUSTRY AND SALES PROMOTION OPERATIONS FORD MOTOR CO IS SET TO LAUNCH THE REDESIGNED MUSTANG WITH A NEW NOSTALGIAFILLED AD CAMPAIGN NEXT MONTH IT IS WHAT IT WAS AND MORE TEASER ADS BEGIN THANKSGIVING WEEKEND THE MUSTANG LAUNCH IS THE FIRST OF SEVERAL NEW PRODUCTS COMING IN THE NEXT YEAR INCLUDING A SMALL SEDAN AND A MINIVAN THOSE EFFORTS WILL INCREASE FORD'S AD SPENDING ALTHOUGH FORD DECLINED TO SAY BY HOW MUCH WPP GROUP'S J WALTER THOMPSON IS FORD'S AGENCY FORD IS TRYING TO TAP INTO A FONDNESS FOR THE ORIGINAL MUSTANG TO HELP REINFORCE WHAT IT HOPES IS THE EMOTIONAL APPEAL OF MUSTANG ODDLY ENOUGH THIS IS A NOSTALGIA CAMPAIGN AIMED PRIMARILY AT THE UNDER30YEAROLD MARKET ABOUT HALF THE POTENTIAL BUYERS OF FORD'S ROUNDED NEW CAR ARE EXPECTED TO BE UNDER 30 TOO YOUNG TO REMEMBER THE INTRODUCTION OF THE ORIGINAL CHROMEEDGED ANGULAR VERSION MEDIA JOCKEY INTERNATIONAL THE CLOSELY HELD KENOSHA WIS APPAREL COMPANY AWARDED THE MEDIA PORTION OF ITS 10 MILLION TO 15 MILLION ACCOUNT TO ADVANSWERS A ST LOUIS AND NEW YORK MEDIA SERVICE JOCKEY EARLIER AWARDED CREATIVE DUTIES ON THE ACCOUNT TO CHICAGO SHOP FAIRMAN SCHMIDT & CAPPELLI PORTLAND ORE AGENCY WIEDEN & KENNEDY HANDLED THE CREATIVE WORK PREVIOUSLY COUPONS CATALINA MARKETING CORP THE ST PETERSBURG FLA COMPANY THAT ISSUES MANUFACTURER COUPONS AT SUPERMARKET CHECKOUTS IS GETTING INTO THE COUPONREDEMPTION BUSINESS CATALINA MARKETING HAS SET UP CATALINA ELECTRONIC CLEARING SERVICES INC A JOINT VENTURE WITH SPECTRAPHYSICS SCANNING SYSTEMS INC TO TEST THE NEW ELECTRONIC CLEARANCE SYSTEM IN 1994 9311170054 931117 LENDING STANDARD FED GIVES BIAS LAWS NEW CLOUT AS IT BLOCKS A BANK ACQUISITION BUT 33 RULING ON MERGER PLAN BY SHAWMUT ALSO LEAVES UNCERTAINTY IN INDUSTRY INSTITUTION DEFENDS RECORD BY KENNETH H BACON AND JOHN R WILKE STAFF REPORTERS OF THE WALL STREET JOURNAL WITH ITS DECISION TO REJECT SHAWMUT NATIONAL CORP'S BID TO ACQUIRE NEW DARTMOUTH BANK OF MANCHESTER NH THE FEDERAL RESERVE BOARD HAS PUT THE FIRST REAL TEETH INTO LAWS AIMED AT THE RACIAL DISCRIMINATION THAT DENIES A FAMILY A CHOICE IN PURCHASING ITS OWN PLACE TO LIVE FOR SHAWMUT AND OTHER LENDERS THE BITE COULD BE SHARP INDEED ACCORDING TO SOME BANKINGINDUSTRY OFFICIALS SLUGGISH LOAN GROWTH AND FIERCE COMPETITION ARE RAPIDLY DIVIDING THE BANKING WORLD INTO TWO KINDS OF INSTITUTIONS THOSE THAT BUY OTHERS AND THOSE THAT GET BOUGHT WITH SUITORS CIRCLING A BANK DENIED THE OPPORTUNITY TO GROW BY ACQUISITION COULD FIND ITSELF WITH LANGUID STOCK PERFORMANCE AND LITTLE CHOICE BUT TO SUBMIT TO TAKEOVER OVERTURES IN THIS ENVIRONMENT SOME OBSERVERS SAY THE TOUGHNESS SIGNALED BY THE FED'S SPLIT DECISION TO REJECT THE ACQUISITION BECAUSE OF CONCERNS OVER FAIRLENDING PRACTICES AMOUNTS TO A KIND OF NEW REGULATORY CANON LEND FAIR OR DIE IF SHAWMUT CONCLUDES THEY CAN'T QUICKLY SOLVE THIS PROBLEM TO THE SATISFACTION OF THE FED THEY COULD JUST HANG UP THE CLEATS AND PUT THEMSELVES OUT FOR BID SAYS GERARD CASSIDY AN ANALYST WITH HANCOCK INSTITUTIONAL EQUITY SERVICES IN PORTLAND MAINE ROADBLOCKS TO ACQUISITIONS BECAUSE OF LENDING PRACTICES MR CASSIDY AND OTHERS SAY THROW A NEW FACTOR INTO THE COMPETITIVE DYNAMICS OF THE INDUSTRY SOME BANKERS TAKE ISSUE WITH THIS ANALYSIS SAYING THAT THE CIRCUMSTANCES OF SHAWMUT'S REJECTION WERE SPECIAL SHAWMUT BASED IN HARTFORD CONN IS ONE OF ONLY FOUR BANKS THAT ARE BEING INVESTIGATED BY THE JUSTICE DEPARTMENT FOR POSSIBLE DISCRIMINATORY LENDING BECAUSE THE FED AND OTHER REGULATORS HAVEN'T EXPLICITLY SPELLED OUT JUST HOW MUCH BANKS MUST DO TO AVOID FAIRLENDING SANCTIONS THE DECISION HAS SOWN UNCERTAINTY AT A TIME WHEN ANXIETIES ARE ALREADY HIGH I'VE HAD TALKS WITH TWO BANKS WHO ARE ACTIVELY LOOKING FOR ACQUISITIONS SAYS RODGIN COHEN A BANKMERGER SPECIALIST AT THE NEW YORK LAW FIRM OF SULLIVAN & CROMWELL THEY DON'T KNOW WHAT TO ANTICIPATE YOU CAN PLAN FOR ANYTHING IF YOU KNOW WHAT THE RULES ARE IT'S WHEN YOU DON'T KNOW WHAT THE RULES ARE THAT MAKES IT SO DIFFICULT INDEED EVEN THE FED'S BOARD OF GOVERNORS SEEMS SPLIT ON THE ISSUE VOTING 33 ON THE SHAWMUT APPLICATION WITH ONE ABSTENTION DENYING THE BANK THE MAJORITY IT NEEDED FOR APPROVAL OF THE TRANSACTION IN MAKING ITS RULING THE FED CITED A NUMBER OF CONCERNS RAISED BY THE MORTGAGE LENDING OPERATIONS OF SHAWMUT INCLUDING A BELIEF THAT THE CURRENT RECORD WAS NOT SUFFICIENT TO PERMIT A FAVORABLE DETERMINATION OF THE EFFECTIVENESS OR ADEQUACY OF STEPS RECENTLY TAKEN BY SHAWMUT TO ADDRESS CONCERNS REGARDING ITS COMPLIANCE WITH THE EQUAL CREDIT OPPORTUNITY ACT AND THE HOME MORTGAGE DISCLOSURE ACT TECHNICALLY THE SHAWMUT DEAL MAY NOT BE DEAD IF THE JUSTICE DEPARTMENT ENDS ITS INVESTIGATION WITHOUT BRINGING CHARGES AND IF SHAWMUT CORRECTS THE PROBLEMS THAT CONCERN THE FED SHAWMUT COULD REAPPLY TO PURCHASE NEW DARTMOUTH IF THE JUSTICE DEPARTMENT CHARGES SHAWMUT WITH VIOLATING FAIRLENDING LAWS THE BANK ALMOST CERTAINLY WOULD AGREE TO CORRECT ITS LENDING PRACTICES AND PERHAPS MAKE SOME SORT OF RESTITUTION TO APPLICANTS AFTER THIS SHAWMUT COULD AGAIN REAPPLY TO THE FED BUT BEFORE EITHER EVENT SHAWMUT COULD LOSE ITS PRIZE TO ANOTHER BIDDER IN THE RAPIDLY CONSOLIDATING NEW ENGLAND BANKING MARKET A SHAWMUT SPOKESMAN ROBERT GUENTHER DEFENDED THE HARTFORD BANK'S RECORD IN MINORITY COMMUNITIES CITING A FIVEPOINT PROGRAM INITIATED IN JANUARY UNDER WHICH SHAWMUT PERMITS LOWER DOWN PAYMENTS FOR CERTAIN LOWINCOME APPLICANTS EXPANDS HOMEBUYER SEMINARS IN MINORITY NEIGHBORHOODS AND USES A SERVICE WHEREIN TESTERS RANDOMLY APPLY FOR MORTGAGES IN VARIOUS BRANCHES SHAWMUT SAID IT ALSO INTENDS TO OPEN A NEW BRANCH IN A PREDOMINATELY BLACK BOSTON NEIGHBORHOOD AND MR GUENTHER SAID THE BANK HAS COMMITTED 25 MILLION TOWARD MORTGAGES FOR APPLICANTS WITH LIMITED CREDIT HISTORY AND THOSE WHO HAVE INCOME STABILITY THOUGH THEY DON'T HAVE EMPLOYMENT STABILITY SOME OF SHAWMUT'S INITIATIVES CAME AS PART OF A SETTLEMENT WITH THE MASSACHUSETTS ATTORNEY GENERAL INVOLVING HIGHINTEREST MORTGAGES TO LOWINCOME BORROWERS THE FED'S DENIAL MONDAY WAS THE LATEST MOVE IN AN INCREASINGLY ACTIVE GOVERNMENT EFFORT TO PREVENT LENDING DISCRIMINATION BANK REGULATORS ARE USING NEW ANALYTICAL TECHNIQUES TO SPOT PATTERNS THAT SUGGEST BIAS PRESIDENT CLINTON HAS ORDERED REGULATORS TO REWRITE COMMUNITY REINVESTMENT ACT RULES TO PRODUCE MORE LENDING IN UNDERSERVED AREAS CONGRESS IS CONSIDERING LEGISLATION THAT WOULD BEGIN TO APPLY SOME OF THE SAME ANTIBIAS STANDARDS TO INSURANCE COMPANIES SO FAR THIS YEAR THERE HAVE BEEN 321 ANNOUNCED BANKING MERGERS OR BUYOUTS TOTALING 203 BILLION WITH A TOTAL ASSET VALUE OF 1552 BILLION ACCORDING TO SNL SECURITIES LP OF CHARLOTTESVILLE VA WITH NUMBERS LIKE THESE BANKERS WOKE UP TO THE SHAWMUT NEWS YESTERDAY WITH A SHUDDER AND INVESTORS SCRAMBLED TO SORT OUT THE WINNERS AND LOSERS IN A STRONGLY RISING STOCK MARKET YESTERDAY INVESTORS DUMPED SHARES OF SEVERAL BANKS AND SAVINGSANDLOAN ASSOCIATIONS WHOSE AGREEMENTS TO BE ACQUIRED ARE AWAITING REGULATORY APPROVAL SHARES OF PEOPLES BANCORP OF WORCESTER MASS SLID 3125 TO 4150 WHILE SHARES OF GATEWAY FINANCIAL CORP OF CONNECTICUT WERE DOWN 25 CENTS TO 1050 BOTH HAVE AGREED TO BE ACQUIRED BY SHAWMUT SHARES OF STERLING BANCSHARES CORP UNDER AGREEMENT TO BE BOUGHT BY FLEET FINANCIAL GROUP INC DROPPED 150 TO 3450 OTHERS THAT DECLINED INCLUDED GREENWICH FINANCIAL CORP AND NEWORLD BANCORP WHICH ARE SLATED TO BE ACQUIRED BY CITIZENS FINANCIAL GROUP INC SHAWMUT'S MR GUENTHER DECLINED TO COMMENT ON THE PROSPECTS FOR THE NEW DARTMOUTH BID AND THE BANK'S OTHER PROPOSED TAKEOVERS IN MANCHESTER WILLIAM CRAIG CHAIRMAN OF NEW DARTMOUTH BANK EXPRESSED DISAPPOINTMENT IN THE DEAL'S REJECTION AND SAID THE BOARD WOULD HAVE TO MEET TO WEIGH ITS OPTIONS DESPITE THE 33 VOTE THOMAS CIMENO SENIOR VICE PRESIDENT OF THE BOSTON FEDERAL RESERVE BANK SAID THE GOVERNORS' VOTE LATE MONDAY SENDS A CLEAR MESSAGE THAT FAIRLENDING PRACTICE WILL BE CAREFULLY CONSIDERED IN THE COURSE OF REGULATORY DECISION MAKING HE NOTED THAT DATA AVAILABLE AS A RESULT OF 1989 AMENDMENTS TO THE HOME MORTGAGE DISCLOSURE ACT OR HMDA REPRESENT A NEW FLOW OF INFORMATION GIVING US ANALYTICAL TOOLS THAT WEREN'T AVAILABLE UNTIL RECENTLY ANY INSTITUTION WHOSE DATA LOOKS OUT OF KILTER HE SAID WILL BE CLOSELY SCRUTINIZED AND POSSIBLY REFERRED TO THE JUSTICE DEPARTMENT HE DECLINED TO COMMENT ON WHETHER SHAWMUT'S TWO OTHER PENDING ACQUISITIONS MIGHT BE AFFECTED THE FED'S ORDER MONDAY CITED QUESTIONS ABOUT THE EFFECTIVENESS OF RECENT SHAWMUT ACTIONS TO COMPLY WITH THE EQUAL CREDIT OPPORTUNITY ACT AND HMDA WHICH REQUIRES REPORTS ON THE NUMBER OF MORTGAGE APPLICATIONS APPROVED AND DENIED BROKEN DOWN BY APPLICANTS' RACE FED OFFICIALS SAID IT WAS THE FIRST TIME THE BOARD HAS CITED THESE TWO LAWS IN DENYING A MERGER APPLICATION REGULATORY OFFICIALS SAY THAT AFTER SHAWMUT'S INITIAL SUBMISSION TO THE FED FOR APPROVAL TO BUY NEW DARTMOUTH BANK THE FED RETURNED THE APPLICATION TELLING SHAWMUT ITS HMDA DATA WERE IN DISARRAY IT TOLD THE BANK TO SUBMIT A NEW APPLICATION WITH CLEARER MORE COMPLETE DATA APPARENTLY SHAWMUT EITHER DELAYED IN RETURNING MORE INFORMATION OR NEVER SUBMITTED IT IN ACCEPTABLE FORM MR GUENTHER SAYS THAT WE RESPONDED TO EVERY REQUEST THE FED MADE FOR DATA OVER THE PAST 15 YEARS THE FED HAS DENIED A HANDFUL OF MERGER APPLICATIONS BECAUSE OF FAILURE TO COMPLY WITH THE COMMUNITY REINVESTMENT ACT WHICH REQUIRES BANKS TO ASSESS AND MEET THE CREDIT NEEDS OF THEIR SERVICE AREAS BUT IT HADN'T PREVIOUSLY CITED SPECIFIC ANTIDISCRIMINATION STATUTES IN THE PAST THE BOARD EVALUATED MERGERS MAINLY ON THE BASIS OF THEIR IMPACT ON BANK SAFETY AND SOUNDNESS AND ECONOMIC CONCENTRATION THE FED'S ACTION MAKES COMPLIANCE WITH FAIRLENDING LAWS MORE OF A POTENTIAL DEALBREAKER THAN IT HAS BEEN IN THE PAST MANY BANKS INCLUDING SHAWMUT HAVE MADE EFFORTS RECENTLY TO BOOST MINORITY LENDING AND IMPROVE THEIR FAIRCREDIT PRACTICES BUT THEY EXPRESS FRUSTRATION WITH WHAT IS PERCEIVED AS A LACK OF CLARITY FROM WASHINGTON ON THE ISSUES NUMBERS SUBMITTED BY SHAWMUT TO THE GOVERNMENT ON LENDING TO WHITES AND BLACKS SHOW DISPARITIES IN MORTGAGELENDING RATES BUT SHAWMUT SAYS IT IS MAKING PROGRESS IN BRIDGING THE GAP FEDERAL COMPUTER TAPES OF HMDA DATA PROCESSED BY THE WALL STREET JOURNAL SHOW THAT THE BANK'S SHAWMUT MORTGAGE CO UNIT DENIED 229 OF BLACK APPLICATIONS IN 1992 AND 113 OF APPLICATIONS FROM WHITES THE FIGURES ARE IN LINE WITH NATIONAL BANKING AVERAGES THE DATA DON'T INCLUDE INFORMATION ON THE APPLICANTS' CREDITWORTHINESS IT ISN'T KNOWN WHETHER THESE WERE THE NUMBERS AT ISSUE IN THE FED'S DELIBERATIONS MR GUENTHER SUPPLIED HMDA NUMBERS FOR TWO YEARS EARLIER 1990 SHOWING THAT THAT YEAR SHAWMUT DENIED 305 OF MORTGAGE APPLICATIONS BY BLACKS AND 14 BY WHITES BUT THROUGH SEPT 30 OF THIS YEAR SHAWMUT SAID THE PICTURE WAS MUCH DIFFERENT 11 OF BLACK APPLICANTS WERE DENIED WHILE 89 OF WHITES WERE TURNED DOWN AT THE ANNUAL CONVENTION OF THE AMERICAN BANKERS ASSOCIATION EARLIER THIS MONTH IN SAN DIEGO REGULATORY CONCERN ABOUT FAIR LENDING WAS A HOT TOPIC THE MAJOR BANKS ARE VERY CONCERNED AND ARE LOOKING AT IT SAID JOHN LIND EXECUTIVE DIRECTOR OF CANICCOR A FIRM THAT ANALYZES LENDING DISPARITIES FOR CHURCH GROUPS MY IMPRESSION IS EVERYONE IS TRYING TO DO BETTER IN TERMS OF OUTREACH TO MINORITIES REGULATORS ARE FORCING BANKS TO REVIEW THEIR ENTIRE COMPLEX OF LENDING PROCEDURES MANY BANKS NOW HAVE SECOND REVIEWS TO GIVE AN APPLICANT ANOTHER LOOK AND HAVE BEEN HIRING LOCAL APPRAISERS WHO KNOW THE COMMUNITIES BETTER BANKS ALSO ARE USING NONTRADITIONAL LENDING GUIDELINES TO TAKE INTO ACCOUNT LOCAL CUSTOMS THAT MIGHT NOT BE STANDARD FOR THE TYPICAL SUBURBAN APPLICANT CHEMICAL BANKING CORP FOR INSTANCE HAS A FIVESTEP PROCESS IF A MINORITY OR LOWINCOME APPLICANT INITIALLY GETS TURNED DOWN IT HAS TAKEN STEPS SUCH AS ALLOWING APPLICANTS TO USE AS COLLATERAL A SOUSOU A TYPE OF SAVINGS ACCOUNT POPULAR AMONG WEST INDIAN IMMIGRANTS INDIVIDUALS CONTRIBUTE TO THE SOUSOU EACH MONTH AND CASH OUT ONCE A YEAR I SEE A TREMENDOUS AMOUNT OF INTEREST ON THE BANKS' PART SAID FRANK GOODEN A MORTGAGE BROKER IN BROOKLYN NY EVEN BANKS IN COMMUNITIES WITH VERY FEW MINORITIES ARE AT RISK OF RUNNING AFOUL OF ANTIDISCRIMINATION LAWS WILLIAM MCCONNELL PRESIDENT OF PARK NATIONAL BANK A 700 MILLIONASSET BANK IN NEWARK OHIO SAYS HE IS SWEEPING THROUGH HIS BANK AND REVIEWING ITS PRACTICES TO WEED OUT POSSIBLE DISCRIMINATION IN ALL PROBABILITY THERE'S BEEN DISCRIMINATION IN YOUR OWN BANK MR MCCONNELL TOLD A HUSHED AUDIENCE AT THE ABA CONVENTION IT CAN AND DOES EXIST EVEN IF IT'S UNINTENTIONAL SOME ANALYSTS WERE PUZZLED BY THE SHAWMUT DECISION IN LIGHT OF THE FED'S APPROVAL OF AN APPLICATION BY BARNETT BANKS INC FOR THE PURCHASE OF CITIZENS & PEOPLES NATIONAL BANK OF PENSACOLA BARNETT BANKS TOO IS UNDER JUSTICE DEPARTMENT INVESTIGATION FOR POSSIBLE LENDING BIAS BUT ONE DIFFERENCE IS THAT THE JUSTICE DEPARTMENT INITIATED ITS PRELIMINARY INQUIRY OF THE JACKSONVILLE FLA BANKING COMPANY WHILE THE SHAWMUT INQUIRY WAS BASED ON A REFERRAL FROM THE FED AFTER YEARS OF BEING REGARDED AS ADVERSARIES BY BANKERS COMMUNITYACTIVIST GROUPS AND OTHER ORGANIZATIONS THAT FOCUS ON FAIR LENDING ARE NOW RECEIVING A HEARTY EMBRACE AND DONATIONS FROM BANKS SHAWMUT MADE A 100000 DONATION TO SUCH A GROUP ON THE DAY ITS APPLICATION WAS REJECTED MELLON BANK IS SUPPORTING AN EFFORT BY BLACK MINISTERS IN BOSTON AND ELSEWHERE TO CONDUCT AN ECONOMIC EDUCATION CAMPAIGN THROUGH THEIR CHURCHES ONE OF THE BIGGEST PROBLEMS BANKS ARE FACING IS THAT THERE ARE NO STANDARDS PER SE AND BECAUSE THE DATA ARE DISCLOSED BANKS SAY THEY ARE FORCED TO BE MORE CONCERNED ABOUT HOW THE INFORMATION MAKES THEM LOOK RATHER THAN WHETHER THEY ARE MAKING MORE LOANS AT PARK NATIONAL IN OHIO FOR INSTANCE THE BANK'S REJECTION RATES FOR BLACKS AND WHITES ARE SIMILAR HOWEVER THE PERCENTAGE OF APPLICANTS IS LOWER THAN THE PERCENTAGE OF MINORITIES IN NEWARK SO THE BANK IS TAKING STEPS TO INCREASE APPLICATIONS BUT IT DOESN'T WANT TO LAUNCH A FULLSCALE ADVERTISING CAMPAIGN BECAUSE OPENING THE FLOODGATES WOULD PROBABLY DRIVE UP THE BANK'S REJECTION RATE AND BECOME A RED FLAG FOR REGULATORS SO RATHER THAN ADVERTISE THE BANK IS WORKING CLOSELY WITH TWO BLACK CHURCHES TO ENCOURAGE AND EDUCATE POTENTIAL APPLICANTS JAMES MCDERMOTT AN ANALYST WITH KEEFE BRUYETTE & WOODS SAYS THAT TOUGHER BANKING REGULATION ON FAIR LENDING IS A BURDEN IN A COMPETITIVE LANDSCAPE THAT'S BEING CHANGED BY GE CAPITAL AT&T AND OTHER NONREGULATED RIVALS WHO MUST BE JUMPING FOR JOY AT THIS TERRENCE MURRAY CHAIRMAN AND CHIEF EXECUTIVE OF FLEET FINANCIAL HAS LONG CRITICIZED WHAT HE REGARDS AS A DOUBLE STANDARD WHY SHOULD BANKS BE SUBJECT TO THE COMMUNITY REINVESTMENT ACT WHILE WALL STREET FIRMS INSURANCE COMPANIES MUTUAL FUNDS AND OTHERS ARE NOT HE ASKS IN THE BANK'S ANNUAL REPORT SUZANNE ALEXANDER AND STEVEN LIPIN CONTRIBUTED TO THIS ARTICLE 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 9311170053 931117 INTERNATIONAL CHINA'S PRESIDENT TO VISIT HAVANA THIS WEEKEND HAVANA REUTER CUBA ANNOUNCED THAT CHINESE PRESIDENT JIANG ZEMIN WILL VISIT THE COMMUNISTRULED CARIBBEAN ISLAND THIS WEEKEND AFTER ATTENDING THE ASIAPACIFIC ECONOMIC COOPERATION FORUM SUMMIT IN SEATTLE HIS TWODAY TRIP THE LATEST SIGN OF GROWING CONTACTS BETWEEN THE TWO COMMUNIST NATIONS HAS BEEN RUMORED IN CUBA BUT WASN'T CONFIRMED OFFICIALLY UNTIL YESTERDAY HE WOULD BE THE HIGHEST RANKING CHINESE OFFICIAL EVER TO VISIT CUBA THE CUBAN NEWS AGENCY PRENSA LATINA SAID HIS VISIT WAS AT THE INVITATION OF FIDEL CASTRO HAVANA HAS MAINTAINED CORDIAL DIPLOMATIC AND TRADE RELATIONS WITH CHINA DESPITE BEIJING'S LONG AND BITTER IDEOLOGICAL RIVALRY WITH MOSCOW AND HAVANA HAS SOUGHT CLOSER TIES WITH COMMUNIST NATIONS IN ASIA FOLLOWING THE DISINTEGRATION OF THE EAST BLOC WHICH CUBA DEPENDED ON FOR TRADE POLITBURO MEMBER CARLOS LAGE VIEWED AS THE ARCHITECT OF CUBA'S CURRENT ECONOMICREFORM PROCESS VISITED CHINA A YEAR AGO AND FOREIGN MINISTER ROBERTO ROBAINA TRAVELED THERE IN JUNE MEANWHILE A DELEGATION FROM THE CHINESE PROVINCE OF SHAANXI ARRIVED IN CUBA LAST WEEK FOR A TOUR 9311170052 931117 SOME QUESTIONS AND ANSWERS ON NAFTA BY BOB DAVIS WITH THE CRUCIAL HOUSE TRADE VOTE LOOMING TONIGHT HERE ARE ANSWERS TO SOME BASIC QUESTIONS ABOUT THE MUCHFOUGHTOVER AGREEMENT WHAT IS NAFTA ANYWAY THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD PHASE OUT TARIFFS AMONG THE US CANADA AND MEXICO OVER 15 YEARS AND GREATLY LIBERALIZE INVESTMENT RULES IN MEXICO BECAUSE THE US AND CANADA ALREADY HAVE A FREETRADE ARRANGEMENT NAFTA'S SIGNIFICANCE RELATES TO MEXICO CURRENTLY MEXICO'S TARIFFS ON US GOODS AVERAGE ABOUT 10 THE US TARIFFS ON MEXICAN EXPORTS AVERAGE 4 WHAT HAPPENS ON DAY ONE OF NAFTA NOT MUCH IF CONGRESS RATIFIES THE AGREEMENT NAFTA WILL BECOME EFFECTIVE JAN 1 1994 ON THAT DAY THE US WOULD ELIMINATE ITS TARIFFS ON ABOUT HALF OF MEXICO'S EXPORTS AND MEXICO WOULD DROP ITS TARIFFS ON ABOUT A THIRD OF US EXPORTS US INVESTMENT IN MEXICO WHICH HAS BEEN GROWING AND NOW TOTALS ABOUT 13 BILLION SHOULD CONTINUE TO INCREASE SO WHY ALL THE FUSS NAFTA HAS STRONG SUPPORT BECAUSE IT WOULD OPEN SOME MEXICAN MARKETS THAT HAVE BEEN CLOSED THROUGH PROTECTIONIST LAWS EXPORTS OF US AUTOS CHEMICALS CORN PHARMACEUTICALS INDUSTRIAL MACHINERY AND COMPUTERS SHOULD ALL GROW SUBSTANTIALLY OVER TIME BUT NAFTA HAS STRONG DETRACTORS BECAUSE IT WOULD LIBERALIZE INVESTMENT ALLOWING US COMPANIES TO SET UP OPERATIONS IN LOWWAGE MEXICO RATHER THAN IN THE US IS IT REALLY FREE TRADE ONLY IN PART THE AGREEMENT CONTAINS SOME SWEETHEART DEALS THAT AID SPECIFIC INDUSTRIES MEXICO'S AUTO REGULATIONS FOR INSTANCE WOULD BE PHASED OUT TO HELP THE COMPANIES ALREADY IN THE COUNTRY FORD GENERAL MOTORS CHRYSLER NISSAN AND VOLKSWAGEN EXPORT MORE TO MEXICO INSTEAD OF HAVING TO BUILD NEARLY ALL THEIR VEHICLES THERE BUT THE PACE IS SLOW ENOUGH THAT IN EFFECT IT WOULD BLOCK OTHER CAR MAKERS FROM EXPORTING TO MEXICO FOR A DECADE OR SO UNLESS THEY ALSO BUILD BIG PLANTS IN MEXICO SO DOES THE US COME OUT A WINNER OR LOSER OVERALL MOST STUDIES PREDICT MODEST GAINS FOR THE US ECONOMY AND BIGGER ONES FOR MEXICO THAT IS BECAUSE THE 6 TRILLION US ECONOMY IS 20 TIMES LARGER THAN MEXICO'S SO IT TAKES A LOT MORE OF A BOOST TO MAKE MUCH IMPACT WEFA GROUP PREDICTS THAT IF NAFTA PASSES THE US ECONOMY WILL BE 06 LARGER IN THE YEAR 2003 THAN IT OTHERWISE WOULD BE MEXICO'S ECONOMY BY CONTRAST WOULD BE 15 LARGER THE MOST VULNERABLE US INDUSTRIES ARE LOWTECH MANUFACTURERS WHOSE PRODUCTS INVOLVE A LOT OF LABOR AND ARE PROTECTED BY HIGH US TARIFFS INDUSTRIES LIKE APPAREL HOUSEHOLD GLASSWARE AND CERAMIC TILES HOW WOULD NAFTA AFFECT US JOBS AGAIN MOST ECONOMIC STUDIES PREDICT A SMALL JOB GAIN IN THE US BUT THE AUTHORS USUALLY NOTE THAT THE MODELS ARE ONLY GROSS APPROXIMATIONS THE ADMINISTRATION PREDICTS THAT NAFTA WOULD PRODUCE AN ADDED 200000 JOBS OVER FIVE YEARS THE OPPOSITION GENERALLY PREDICTS A 500000JOB LOSS BUT GIVEN THAT THE US ECONOMY CAN PRODUCE 200000 JOBS IN A SINGLE MONTH DURING AN UPSWING NEITHER PREDICTION ENVISIONS A BIG SHIFT IN EMPLOYMENT ROSS PEROT SAYS NAFTA WOULD CREATE A GIANT SUCKING SOUND PULLING US COMPANIES TO MEXICO TRUE OR FALSE MR PEROT'S ARGUMENT RESTS ON TWO FACTS MEXICAN WAGES ARE MUCH LOWER THAN US WAGES AND NAFTA GIVES US INVESTORS MUCH GREATER PROTECTION THAN CURRENT MEXICAN LAW BUT COMPANIES MAKE DECISIONS ON INVESTING ABROAD FOR A WIDE VARIETY OF REASONS INCLUDING THE SIZE OF THE FOREIGN MARKETS THE PRODUCTIVITY OF THEIR WORKERS AND THE QUALITY OF ROADS COMMUNICATIONS AND OTHER INFRASTRUCTURE OVERALL US WORKERS' PAY IS FIVE TIMES THAT OF MEXICAN WORKERS BUT US PRODUCTIVITY IS FIVE TIMES AS GREAT AS WELL NULLIFYING ANY WAGE ADVANTAGE AND MEXICO'S ROADS AND PHONE SYSTEM ARE WOEFUL UNDOUBTEDLY MANY COMPANIES WOULD MOVE FACTORIES TO MEXICO TO TAKE ADVANTAGE OF CHEAP WAGES AND EXPORT GOODS BACK TO THE US BUT NAFTA PROMISES TO SPUR GROWTH IN MEXICO THAT SHOULD OPEN EXPORT OPPORTUNITIES FOR COMPANIES THAT REMAIN IN THE US AND PROVIDE A BIGGER MEXICAN MARKET FOR US COMPANIES THAT LOCATE THERE OVERALL MOST ECONOMISTS SAY THE US SHOULD GAIN HOW WOULD NAFTA AFFECT THE ENVIRONMENT UNDER SPECIAL SIDE DEALS NEGOTIATED BY PRESIDENT CLINTON THE THREE NAFTA NATIONS AGREED TO SET UP A SPECIAL COMMISSION ON ENVIRONMENTAL COOPERATION WHICH WOULD GENERALLY TRY TO PRESSURE THE COUNTRIES TO CLEAN UP ENVIRONMENTAL MESSES BY ISSUING EMBARRASSING REPORTS PROVISIONS ALLOW FOR ARBITRATION FINES AND TRADE SANCTIONS BUT THEY ARE UNLIKELY TO BE USED MUCH INSTEAD NAFTA GENERALLY RELIES ON MEXICO'S GROWING MIDDLE CLASS AND THE GLARE OF PUBLICITY TO PRESS THE MEXICAN GOVERNMENT TO ENFORCE ITS ENVIRONMENTAL LAWS ALL SIDES AGREE THAT THE USMEXICAN BORDER IS AN ENVIRONMENTAL MESS TO FINANCE CLEANUP PROJECTS THE US AND MEXICO AGREED TO SET UP A 3 BILLION DEVELOPMENT BANK WHAT IF NAFTA TURNS OUT TO BE A DISASTER FOR THE US ANY NAFTA NATION CAN WITHDRAW FROM THE TRADE PACT AFTER GIVING SIX MONTHS' NOTICE BUT PULLING OUT WOULD BE SEEN AS A SLAP IN THE FACE OF MEXICO AND A MOVE TOWARD ISOLATIONISM THE TRADE EQUIVALENT OF THE US WITHDRAWING FROM AN ARMSCONTROL TREATY ONCE NAFTA IS IN EFFECT THE US WOULD HAVE TO LIVE WITH THE CONSEQUENCES 9311170051 931117 WHAT'S NEWS WORLDWIDE THE WHITE HOUSE SEIZED MOMENTUM ON THE EVE OF THE NAFTA VOTE CLINTON WON A RUSH OF CONVERTS FOR THE TRADE AGREEMENT AS OPPONENTS WERE ACCUSING THE ADMINISTRATION OF DOLING OUT BILLIONS OF DOLLARS IN CONCESSIONS TO LINE UP SUPPORT AFTER A TWOMONTH FIGHT THE PRESIDENT SEEMED POISED FOR A HOUSE VICTORY ON THE TRADE PACT WITH CANADA AND MEXICO PRONAFTA REPUBLICANS MET THEIR GOAL OF REACHING 118 FIRM YES VOTES AND DEMOCRATIC VOTECOUNTERS VOICED CONFIDENCE THEY'D PRODUCE THE REMAINING 100 VOTES THAT ARE NEEDED LASTMINUTE WHITE HOUSE DEALMAKING WITH UNDECIDED LAWMAKERS WAS CRITICAL BY A 36TO31 MARGIN AMERICANS SAY THEY FAVOR NAFTA A WALL STREET JOURNAL/NBC NEWS POLL SHOWS THERE IS A GROWING PUBLIC BELIEF THAT THE ACCORD WILL BE A NET JOBGAINER FOR THE COUNTRY A COURT RULED IT IS UNCONSTITUTIONAL TO BAN HOMOSEXUALS FROM THE MILITARY THE INFLUENTIAL FEDERAL APPEALS COURT IN WASHINGTON DC SAID THE MILITARY'S RELUCTANCE TO ALLOW HOMOSEXUALS TO SERVE STEMS FROM PREJUDICE IN THE PAST FEDERAL APPEALS COURTS HAVE DEFERRED TO THE MILITARY ON THE ISSUE THE COURT ORDERED THE MILITARY TO REINSTATE A US NAVAL ACADEMY STUDENT WHO WAS FORCED OUT IN 1987 AND TO COMMISSION HIM AS AN OFFICER THOUGH THE CASE DIDN'T INVOLVE CLINTON'S COMPROMISE DON'T ASK DON'T TELL POLICY IT RAISES QUESTIONS ABOUT WHETHER EVEN THAT LESSRESTRICTIVE APPROACH WOULD PASS MUSTER IN THE COURTS HEZBOLLAH REBELS MOUNTED THEIR HEAVIEST ATTACK ON ISRAELIHELD TERRITORY IN SOUTHERN LEBANON SINCE ISRAEL AND THE PLO SIGNED A PEACE PACT IN SEPTEMBER THE ISRAELIS RETALIATED WITH AIR RAIDS AND ACCUSED SYRIA OF PROVOKING THE VIOLENCE IN WASHINGTON ISRAELI LEADER RABIN OFFERED TO RESUME PEACE TALKS WITH SYRIA WITHOUT PRECONDITIONS THE SENATE VOTED 6930 TO GIVE THE JUSTICE DEPARTMENT EXPANDED POWERS TO STOP ABORTION CLINIC BLOCKADES AND PUNISH VIOLENT PROTESTERS THE BILL WOULD CREATE NEW FEDERAL CRIMES AND PUNISHMENTS FOR USE OF FORCE THREATS AND INTIMIDATION AGAINST WOMEN SEEKING AND DOCTORS PROVIDING ABORTIONS THE HOUSE WILL CONSIDER A SIMILAR BILL US ROMAN CATHOLIC LEADERS DISCUSSED PLANS FOR AN AGGRESSIVE NEW ANTIABORTION CAMPAIGN DURING THEIR ANNUAL FALL MEETING IN WASHINGTON CATHOLIC BISHOPS SAID THEY INTEND TO ISSUE THEIR FIRST MAJOR PASTORAL STATEMENT ON THE SUBJECT IN NEARLY TWO DECADES AND MOBILIZE ONE MILLION CHURCHGOERS FOR LOBBYING EFFORTS A HEAVY SNOWFALL BLANKETED PARTS OF BOSNIA COMPOUNDING PROBLEMS FOR AID CONVOYS TRYING TO REACH CIVILIANS MUSLIM SERB AND CROAT LEADERS AGREED TO ATTEND TALKS TOMORROW TO DISCUSS FREE ACCESS FOR THE CONVOYS MEANWHILE UN OFFICIALS REPORTED AN UPSURGE OF SERBMUSLIM FIGHTING NEAR THE TOWN OF OLOVO NORTHEAST OF SARAJEVO THE STATE DEPARTMENT EXPRESSED ITS CONCERN ABOUT NEW ALLEGATIONS THAT IRAQI GOVERNMENT FORCES HAVE BEEN USING CHEMICAL WEAPONS AGAINST OPPOSITION SHIITE MUSLIMS IN IRAQ'S SOUTHERN MARSHLANDS A DEPARTMENT SPOKESWOMAN SAID SUCH ACTIVITIES IF TRUE WOULD VIOLATE ONE OF THE UN'S GULF WAR CEASEFIRE RESOLUTIONS THE SECURITY COUNCIL CALLED OFF ITS HUNT FOR SOMALI CLAN LEADER AIDID AND SET UP A SPECIAL COMMISSION TO INVESTIGATE ARMED ATTACKS AGAINST UN PEACEKEEPERS ALL 15 COUNCIL MEMBERS VOTED FOR THE USDRAFTED RESOLUTION THAT SUSPENDED A UN ARREST WARRANT FOR AIDID LINKED TO THE JUNE SLAYING OF 24 PAKISTANI PEACEKEEPERS A FREEDOM OF WORSHIP LAW WAS SIGNED BY CLINTON MAKING IT HARDER FOR THE GOVERNMENT TO INTERFERE WITH RELIGIOUS PRACTICES THE LAW WHICH WAS OVERWHELMINGLY APPROVED BY CONGRESS REVERSES A 1990 SUPREME COURT RULING THAT MADE IT EASIER FOR LOCAL AND FEDERAL OFFICIALS TO PASS MEASURES INFRINGING ON RELIGIOUS BELIEFS JAPAN'S PRIME MINISTER SET A CRUCIAL PARLIAMENTARY SHOWDOWN ON POLITICAL REFORM FOR TOMORROW HOSOKAWA HAD A SURPRISINGLY EASY TIME PUSHING THE SET OF BILLS THROUGH A LEGISLATIVE PANEL HAITIAN MOTORISTS LINED UP AT GAS STATIONS AFTER SHELL RESUMED GASOLINE SALES DESPITE A UN OIL EMBARGO AIMED AT PUNISHING THE COUNTRY'S ARMY LEADERS SHELL'S DECISION TO RELEASE THE FUEL FROM STORAGE TANKS IN HAITI ENDED A WEEKLONG STANDOFF BETWEEN THE COMPANY AND DISTRIBUTORS EXXON AND TEXACO WERE EXPECTED TO FOLLOW SHELL'S LEAD 9311170050 931117 EUROPEAN PC MARKET SAW SALES RISE IN 3RD QUARTER LONDON THANKS TO RENEWED BUYING BY BUSINESSES THE EUROPEAN PERSONAL COMPUTER MARKET SAW A MODERATE RISE IN SALES IN THE THIRD QUARTER THE NUMBER OF PCS SOLD IN EUROPE IN THE QUARTER ROSE 13 TO 222 MILLION FROM 197 MILLION A YEAR EARLIER ACCORDING TO A REPORT ON THE INDUSTRY BY THE WALL STREET JOURNAL AND DATAQUEST INC A MARKETRESEARCH UNIT OF DUN & BRADSTREET CORP BUT A CONTINUING INDUSTRY PRICE WAR HELD BACK REVENUE NEVERTHELESS ANY INCREASE CAME AS A SURPRISE TO MANY MARKETWATCHERS WHO HAD BEEN FORECASTING A RECESSIONBATTERED SECOND HALF THE OUTLOOK FOR THE FOURTH QUARTER ISN'T ROSY DATAQUEST IS FORECASTING A FEEBLE GROWTH RATE OF 2 TO 3 IN THE QUARTER A FAR CRY FROM THE YEAREARLIER BOOM OF 22 THAT WOULD YIELD AN AVERAGE GROWTH RATE BETWEEN 9 AND 10 FOR THE YEAR DOWN SLIGHTLY FROM LAST YEAR'S 12 THE CONSUMER MARKET IS PART OF THE PROBLEM ACCORDING TO CHRISTOPHER FELL OF DATAQUEST WHILE SALES OF BIG BRANDNAME PCS ROSE THE AIR WENT OUT OF THE MARKET FOR NONCOMPATIBLE PCS CHIEFLY BUDGET MACHINES MADE BY COMMODORE INTERNATIONAL LTD AND ATARI CORP COMMODORE'S SHARE OF EUROPEAN PC UNITSHIPMENTS FELL TO 59 FROM 117 A YEAR EARLIER AFTER MORE THAN A YEAR OF DISCOUNTING BY INTERNATIONAL BUSINESS MACHINES CORP AND OTHER BIG PLAYERS COMMODORE'S PRODUCTS HAVE LOST MUCH OF THEIR ALLURE 9311170049 931117 FED OFFICIALS ARE RESIGNED TO GREATER DISCLOSURE WASHINGTON TOP FEDERAL RESERVE OFFICIALS ARE RESIGNED TO RELEASING MOREDETAILED INFORMATION ABOUT PAST MONETARYPOLICY DELIBERATIONS NEWLY DISCLOSED NOTES OF AN OCT 15 FED CONFERENCE CALL SUGGEST THE EMBARRASSING NOTES TAKEN BY JERRY JORDAN PRESIDENT OF THE FEDERAL RESERVE BANK OF CLEVELAND AND ONE OF HIS STAFFERS WERE RELEASED BY THE HOUSE BANKING COMMITTEE THE COMMITTEE HAD ASKED EACH FED PRESIDENT FOR ANY NOTES KEPT OF DISCUSSIONS HELD PRIOR TO AN OCT 19 HEARING BEFORE THE COMMITTEE DURING THE OCT 15 MEETING THE NOTES SHOW FED CHAIRMAN ALAN GREENSPAN AND THE FED'S GENERAL COUNSEL J VIRGIL MATTINGLY TOLD FED OFFICIALS THAT THE LATEST JUSTICE DEPARTMENT POLICY ON PUBLIC DISCLOSURE MEANS THAT THE FED HAS NO LEGAL GROUNDS FOR WITHHOLDING EDITED TRANSCRIPTS OF MEETINGS HELD MORE THAN THREE YEARS AGO AT THE HOUSE HEARING MR GREENSPAN DISCLOSED THE EXISTENCE OF UNEDITED TRANSCRIPTS OF FED DELIBERATIONS GOING BACK TO 1976 THE COMMITTEE'S CHAIRMAN REP HENRY GONZALEZ D TEXAS HAS DEMANDED COPIES 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 9311170048 931117 MARKETING & MEDIA TIME WARNER UNIT HAS A PACT WITH THE ARNOLDS BURBANK CALIF TOM AND ROSEANNE ARNOLD'S WAPELLO COUNTY PRODUCTIONS SIGNED AN EXCLUSIVE LONGTERM TELEVISIONPRODUCTION AGREEMENT WITH TIME WARNER INC'S WARNER BROS TELEVISION NO FINANCIAL TERMS WERE DISCLOSED UNDER THE DEAL WHICH DOESN'T INCLUDE THE LONGRUNNING ABC HIT ROSEANNE WAPELLO WILL CREATE DEVELOP AND PRODUCE COMEDY SERIES FOR ALL MEDIA UNDER THE WARNER BROS TELEVISION BANNER PREVIOUSLY WAPELLO WORKED WITH WARNER BROS TELEVISION THEN KNOWN AS LORIMAR TELEVISION ON ABC'S THE JACKIE THOMAS SHOW STARRING MR ARNOLD WHICH WAS CANCELED FOR MEDIOCRE RATINGS WAPELLO'S NEW TOM SERIES FOR CBS INC'S CBS NETWORK STARRING MR ARNOLD IS ALSO IN ASSOCIATION WITH WARNER BROS TELEVISION WARNER BROS WILL ASSUME THE EXISTING FIRSTLOOK DEAL THAT WAPELLO HAS WITH CAPITAL CITIES/ABC INC'S ABC TV NETWORK WHICH GAVE WAPELLO COMMITMENTS TO DEVELOP NEW SERIES FOR ABC ALREADY IN DEVELOPMENT ARE AN ENSEMBLE COMEDY FEATURING THE SINGING GROUP EN VOGUE AND A HALFHOUR SERIES STARRING COMEDIAN SANDRA BERNHARD 9311170047 931117 PHILIP MORRIS ANTICIPATES CHARGE FOR RESTRUCTURING PHILIP MORRIS COS SAID ITS BOARD WILL CONSIDER A SIGNIFICANT FOURTHQUARTER RESTRUCTURING CHARGE AT ITS MEETING NEXT WEEK PHILIP MORRIS ALSO DISCLOSED THAT ITS DOMESTIC TOBACCO OPERATING PROFIT WOULD FALL BY 45 OR 23 BILLION THIS YEAR IN APRIL THE COMPANY SAID THAT US TOBACCO PROFIT WOULD DROP BY 40 OR 2 BILLION AS A RESULT OF LOWER CIGARETTE PRICES IN A QUARTERLY FINANCIAL FILING WITH THE SECURITIES AND EXCHANGE COMMISSION PHILIP MORRIS SAID A NUMBER OF COSTREDUCTION PROPOSALS WOULD BE CONSIDERED AT ITS NOV 24 BOARD MEETING THE PROPOSALS WOULD RESULT IN A SIGNIFICANT RESTRUCTURING CHARGE IN THE FOURTH QUARTER OF 1993 WERE THEY TO BE APPROVED THE COMPANY SAID PHILIP MORRIS DID NOT DISCLOSE THE SIZE OF THE CHARGES UNDER CONSIDERATION A CHARGE HAS BEEN EXPECTED AS THE TOBACCO INDUSTRY MOVES TO CUT COSTS PHILIP MORRIS ALSO DISCLOSED THAT IT PAID 200 MILLION TO WHOLESALERS AND RETAILERS IN THE THIRD QUARTER TO COMPENSATE FOR THE EFFECT OF THE PRICE CUTS ON WHOLESALER'S INVENTORIES PHILIP MORRIS ALSO WARNED THAT AN INCREASE IN THE FEDERAL CIGARETTE TAX COULD RESULT IN VOLUME DECLINES AND COULD CAUSE FURTHER SHIFTS FROM PREMIUM CIGARETTES TO DISCOUNT CIGARETTES 9311170046 931117 WHAT'S NEWS BUSINESS AND FINANCE STOCK PRICES RALLIED WITH THE DOW JONES INDUSTRIAL AVERAGE JUMPING TO A RECORD AS INVESTORS RESPONDED BULLISHLY TO SIGNS THAT NAFTA WILL PASS CONGRESS THE INDUSTRIAL AVERAGE ROSE 3325 POINTS TO 371077 CLOSING ABOVE THE 3700 MARK FOR THE FIRST TIME THE DOLLAR ENDED HIGHER STOCKS IN MEXICO CITY SURGED 17 TO A FIFTH STRAIGHT RECORD ON THE NAFTA OPTIMISM TOKYO STOCKS POSTED STRONG GAINS RECOVERING SOME LOST GROUND BAXTER INTERNATIONAL PLANS TO TAKE FOURTHQUARTER CHARGES OF 925 MILLION AND CUT 73 OF ITS WORK FORCE THE HOSPITALPRODUCTS MAKER WILL TAKE THE CHARGES TO COVER THE COST OF BREASTIMPLANT AND OTHER LITIGATION RESULTING IN FOURTHQUARTER AND FULLYEAR LOSSES THE FED'S DECISION TO DENY SHAWMUT'S APPLICATION TO ACQUIRE A BANK REFLECTS A TOUGH POLICY ON FAIR LENDING THAT COULD SERIOUSLY HAMPER BANK COMPANIES' ABILITY TO MAKE ACQUISITIONS A BANK THAT CAN'T GROW BY ACQUISITION COULD SEE ITS STOCK PRICE LANGUISH AND HAVE TO SUBMIT TO TAKEOVER OVERTURES A MORGAN STANLEY FUND AGREED TO BUY THE RED ROOF HOTEL CHAIN A SIGN THAT SOCALLED REALESTATE VULTURE FUNDS ARE LOOKING PAST DISTRESSED PROPERTIES IN SEARCH OF INVESTMENT OPPORTUNITIES MORGAN STANLEY WILL PAY 620 MILLION IN CASH AND THE ASSUMPTION OF DEBT GENERAL MOTORS' CEO TOLD ANALYSTS THAT THE NO 1 AUTO MAKER WILL HAVE A PROFIT IN ITS NORTH AMERICAN OPERATIONS NEXT YEAR AFTER MORE THAN 17 BILLION IN LOSSES SINCE 1990 SEPARATELY THE JUSTICE DEPARTMENT FILED AN ANTITRUST SUIT TO BLOCK GM'S PROPOSED 525 MILLION SALE OF A TRANSMISSION UNIT AMERICAN AIR'S SERVICE ON SHORTER LESSTRAVELED ROUTES COULD BE DISRUPTED IF THE CARRIER'S FLIGHT ATTENDANTS STRIKE TOMORROW SOME TRAVEL AGENTS SAID THE AGENTS SAID THE AMR UNIT TOLD THEM IT EXPECTS TO BE ABLE TO OPERATE ITS LARGEST HUBS IF A STRIKE IS CALLED DELTA AIR PLANS TO SELL TRADE OR ABANDON UNDERPERFORMING TRANSATLANTIC ROUTES OVER SEVERAL MONTHS THE UNEMPLOYMENT RATE COULD RISE BY HALF A PERCENTAGE POINT BECAUSE OF CHANGES TAKING EFFECT IN JANUARY IN THE GOVERNMENT'S TALLYING SYSTEM MAJOR CARBON DIOXIDE SUPPLIERS WERE ACCUSED BY THE FLORIDA ATTORNEY GENERAL SODA BOTTLERS AND FOOD COMPANIES OF FIXING PRICES ACROSS THE US MEANWHILE A FEDERAL GRAND JURY WORKING WITH THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION IS INVESTIGATING THE INDUSTRY AS WELL BOEING WON A 550 MILLION FREIGHTERPLANE ORDER FROM UNITED PARCEL SERVICE AND LOCKHEED ARRANGED TO SELL F16 FIGHTERS TO SINGAPORE IN AN 890 MILLION TRANSACTION QVC ASKED A JUDGE TO THROW OUT ANTITAKEOVER PROVISIONS IT SAYS ARE BLOCKING IT FROM ACQUIRING PARAMOUNT EVEN AS PARAMOUNT VIGOROUSLY DEFENDED ITS MERGER PACT WITH VIACOM HONDA MOTOR'S PRETAX PROFIT DROPPED 68 IN ITS SECOND QUARTER REFLECTING THE EFFECTS OF THE STRONG YEN AND WEAK DEMAND IN JAPAN FOR CARS THE CAR MAKER ALSO LOWERED ITS EARNINGS FORECAST FOR THE FULL YEAR CRAY COMPUTER EXPECTS TO MAKE ITS FIRST SALE OF A SUPERCOMPUTER NEXT YEAR AND TO UNVEIL ITS NEXTGENERATION CRAY 4 BY THE END OF 1994 ITS CEO SAID BONDS LEHMAN BROTHERS TREASURY INDEX 554643 UP 332 COMMODITIES OIL 1677 A BARREL UP ONE CENT DOW JONES FUTURES INDEX 13413 UP 045 SPOT INDEX 12245 UP 013 DOLLAR 10677 YEN UP 007 17047 MARKS UP 00127 9311170045 931117 GOODY'S FAMILY CLOTHING FINDS ACCOUNTING PROBLEMS KNOXVILLE TENN GOODY'S FAMILY CLOTHING INC SAID ITS INTERNAL AUDITOR FOUND ACCOUNTING IRREGULARITIES RELATED TO THE CHIEF EXECUTIVE OFFICER'S PERSONAL EXPENSES THE WOMEN'S CLOTHING RETAILER ALSO SAID ITS CHIEF FINANCIAL OFFICER DONALD VANDENBERG 44 YEARS OLD RESIGNED GOODY'S SAID THE PROBLEMS BEGAN LAST YEAR WHEN ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT GOODFRIEND PURCHASED STOCK INVESTMENTS FROM THE COMPANY FOR 66 MILLION AT THE TIME MR GOODFRIEND WROTE A CHECK FOR THAT AMOUNT WHILE THE CHECK WAS RECORDED AS CASH ON HAND IT WAS NOT CASHED THE COMPANY SAID INSTEAD MR VANDENBERG HELD THE CHECK UNTIL AFTER MR GOODFRIEND GOT A BANK LOAN FOR THAT AMOUNT THE COMPANY SAID UNBEKNOWNST TO THE BOARD MR GOODFRIEND THE FOUNDER'S SON USED COMPANY MONEY TO PAY OFF THE BANK LOAN THE COMPANY SAID HE THEN WROTE ANOTHER CHECK FOR 66 MILLION WHICH WAS AGAIN HELD BY THE COMPANY BEFORE BEING DEPOSITED IT TOO WAS RECORDED AS CASH ON HAND ACCORDING TO THE COMPANY NEITHER MR GOODFRIEND NOR MR VANDENBERG COULD BE REACHED FOR COMMENT 9311170043 931117 INTERNATIONAL BRIEF BRITISH MIDLAND AIRWAYS FIRM ORDERS FOKKER PLANES IN FLEET RENEWAL PROGRAM BRITISH MIDLAND AIRWAYS ANNOUNCED A FLEET RENEWEL PROGRAM THAT INCLUDES ORDERS FOR NINE NEW PLANES FROM FOKKER NV VALUED AT 300 MILLION THE BRITISH AIRLINE IS ALSO IN TALKS TO TAKE EIGHT BOEING 737S FROM SCANDINAVIAN AIRLINES SYSTEM BRITISH MIDLAND HAS ALSO TAKEN OUT OPTIONS ON AN ADDITIONAL THREE FOKKER 100S AND THREE BOEING CO 737S ALTOGETHER BRITISH MIDLAND EXPECTS TO ACQUIRE 17 AIRCRAFT VALUED AT 275 MILLION 4095 MILLION THE AIRLINE WILL LEASE ALL OF THE PLANES THE PLANES WILL REPLACE OLDER AIRCRAFT IN PARTICULAR MCDONNELL DOUGLAS DC9S THAT WON'T MEET NOISE AND ENVIRONMENTAL STANDARDS SCHEDULED TO GO INTO EFFECT LATER IN THE DECADE BRITISH MIDLAND'S FLEET SIZE WILL REMAIN UNCHANGED AT 30 AIRCRAFT WHEN THE ACQUISITIONS ARE COMPLETE BRITISH MIDLAND ORDERED FOUR FOKKER 100S AND FIVE OF THE NEW FOKKER 70S THE FIRSTEVER EUROPEAN ORDER FOR THE 70SEAT AIRLINER FOKKER IS 51CONTROLLED BY DEUTSCHE AEROSPACE AG AN ARM OF DAIMLERBENZ AG 9311170042 931117 INTERNATIONAL BRIEF RENAULT SA FRANCE VOWS STAKE IN MERGER WON'T HURT VOLVO'S INTERESTS FRENCH INDUSTRY MINISTER GERARD LONGUET REITERATED FRENCH ASSURANCES THAT THE GOVERNMENT DOESN'T INTEND TO USE ITS GOLDEN SHARE IN THE MERGED RENAULTVOLVO CAR GROUP AGAINST VOLVO'S INTERESTS MR LONGUET MET WITH SOEREN GYLL GENERAL MANAGER OF AB VOLVO IN AN ATTEMPT TO CLEAR UP MISUNDERSTANDINGS OVER THE PLANNED MERGER RENAULT SA'S CHAIRMAN LOUIS SCHWEITZER WAS ALSO PRESENT AS CURRENTLY PLANNED THE FRENCH STATE'S GOLDEN SHARE WILL ALLOW IT TO BLOCK ANY SINGLE INVESTOR FROM ACQUIRING A SHAREHOLDING OF MORE THAN 20 IN THE MERGED GROUP THE MERGER TERMS CALL FOR VOLVO TO HAVE A 35 STAKE ALONGSIDE THE FRENCH GOVERNMENT'S 65 THIS STAKE WILL SUBSEQUENTLY BE BROUGHT TO THE MARKET PROBABLY NEXT YEAR WHEN THE GOVERNMENT FULFILLS ITS PROMISE TO PRIVATIZE THE FRENCH CAR GROUP 9311170039 931117 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN GRUMBLING GROWS AMONG BANKS AND OTHER COMPANIES ABOUT A NEW TAX RULE A PROVISION OF THE NEW LAW REQUIRES SECURITIES DEALERS TO USE THE MARKTOMARKET METHOD OF VALUING CERTAIN SECURITIES FOR YEARS ENDING ON OR AFTER DEC 31 1993 THIS MEANS THEY MUST VALUE THOSE SECURITIES AT MARKET PRICES NOT COST OR SOME OTHER BASE FOR YEAREND TAXES BUT RECENT TREASURY GUIDELINES LEFT UNANSWERED A THORNY QUESTION WHAT EXACTLY IS A SECURITIES DEALER NOT US MANY SMALL BANKS AND INSURANCE COMPANIES INSIST THUS WE SHOULDN'T HAVE TO COMPLY TREASURY OFFICIALS ARE STUDYING THE QUESTION AND HOPE TO HAVE ANSWERS BY YEAR END SAYS LESLIE SAMUELS TREASURY ASSISTANT SECRETARY FOR TAX POLICY REPUBLICAN SEN MACK OF FLORIDA WRITES THE TREASURY TO WARN THAT FORCING SMALL BANKS TO COMPLY WOULD FURTHER STRAIN MODEST RESOURCES AND ADD TO THEIR REGULATORY BURDENS THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA'S NEWSLETTER LABELS THE FLAP MARK TO MARKET MADNESS THE PROVISION IS DESIGNED TO RAISE 38 BILLION IN REVENUE OVER FIVE YEARS HOPES FADE FOR PASSING A BILL THIS YEAR TO SIMPLIFY TAX LAWS AND FIX MISTAKES A BILL APPROVED RECENTLY BY THE HOUSE WAYS AND MEANS COMMITTEE APPEARS TO BE SINKING RAPIDLY IN POLITICAL QUICKSAND EVEN THOUGH MOST OF ITS PROVISIONS ARE FAR FROM CONTROVERSIAL MANY PROVISIONS MERELY WOULD CORRECT TECHNICAL ERRORS BURIED IN OLD LAWS BACKERS FEAR SENDING THE BILL TO THE SENATE WOULD LEAD TO MANY CONTROVERSIAL PROPOSED AMENDMENTS AND EVENTUAL DEFEAT REPUBLICAN SENATORS MIGHT SEIZE THE OPPORTUNITY TO PROPOSE REPEALING THE NEW LAW'S RETROACTIVE TAX INCREASES WHILE POLITICALLY POPULAR REPEAL OF THOSE RETROACTIVE INCREASES WOULD BE A MULTIBILLIONDOLLAR REVENUE LOSER THUS LONGOVERDUE TAXLAW CORRECTIONS AND SIMPLIFICATION MEASURES MAY HAVE TO WAIT UNTIL NEXT YEAR AT THE EARLIEST IT ISN'T EVEN CLEAR WHETHER THE HOUSE WILL VOTE ON THE BILL THIS YEAR THE HOUSE CALENDAR IS CROWDED AND THE TAX MEASURE ISN'T CONSIDERED A HIGH PRIORITY THE CUSTOMS SERVICE DRAWS FIRE OVER ITS INTERNAL CONTROLS AND ACCOUNTING THE SERVICE WHICH ENFORCES LAWS ON THE FLOW OF GOODS ACROSS US BORDERS NEEDS TO GET ITS OWN HOUSE IN ORDER SAYS THE GENERAL ACCOUNTING OFFICE CONGRESS'S WATCHDOG AGENCY A GAO REPORT FINDS CUSTOMS' RECORDS ON SEIZED PROPERTY INCOMPLETE AND INACCURATE CUSTOMS DIDN'T INCLUDE LARGE AMOUNTS OF SEIZED PROPERTY SHOWED THE WRONG LOCATIONS FOR SOME ITEMS AND INCLUDED INCORRECT VALUES CUSTOMS OFFICIALS ALSO NEED TO IMPROVE CONTROLS OVER THEIR ARSENAL OF ABOUT 23000 WEAPONS THE GAO SAYS FAILURE TO DO SO MAKES CUSTOMS VULNERABLE TO UNDETECTED LOSSES OR THEFT OF WEAPONS THE GAO EARLIER THIS YEAR SAID IT COULDN'T EXPRESS AN OPINION ON THE RELIABILITY OF CUSTOMS' 1992 FINANCIAL STATEMENTS DUE TO LACK OF RELIABLE INFORMATION INADEQUATE FINANCIAL SYSTEMS AND PROCESSES AND AN INEFFECTIVE INTERNAL CONTROL STRUCTURE CUSTOMS OFFICIALS SAY THEY ARE WORKING WITH THE GAO TO IMPROVE FINANCIAL CONTROLS AND THAT SOME ACTIONS ALREADY HAVE BEEN TAKEN BIG BUSINESSES SPEND 106 BILLION OR AN AVERAGE OF 21 MILLION PER FORTUNE 500 COMPANY ON INCOMETAX COMPLIANCE EACH YEAR SAYS A TAX FOUNDATION REPORT BY JOEL SLEMROD OF THE UNIVERSITY OF MICHIGAN AND MARSHA BLUMENTHAL OF THE UNIVERSITY OF ST THOMAS ABOUT 70 IS DUE TO THE FEDERALTAX SYSTEM ESPECIALLY RULES ON FOREIGNSOURCE INCOME AND THE ALTERNATIVE MINIMUM TAX FEWER PEOPLE ARE FILING TAX RETURNS AND THE IRS IS TRYING TO FIGURE OUT WHY AS OF NOV 5 THE IRS RECEIVED 114427000 INDIVIDUAL 1992 RETURNS DOWN 831000 FROM A YEAR EARLIER AND WELL BELOW THE 117 MILLION RETURNS THE IRS ONCE PROJECTED SOME RETAILERS ARE MAKING MISTAKES WHEN FILING FOR REFUNDS OF REPEALED LUXURY TAXES THUS DELAYING THEIR REFUND CHECKS THE IRS SAYS MANY BOAT DEALERS AND JEWELERS FOR INSTANCE FAIL TO REPORT CUSTOMERS' ID NUMBERS AND DON'T ACCOUNT FOR LUXURY TAXES PAID REFUNDS CLAIMED AND THE REMAINING TAX ELIGIBLE FOR REFUND COMPANIES WILL REPORT MORE DATA SOON ON THEIR TAXLOSS CARRYOVERS NO ONE KNOWS EXACTLY HOW MUCH COMPANIES HAVE PILED UP IN NET OPERATING LOSSES TO OFFSET FUTURE TAX LIABILITIES BUT THAT SOON WILL CHANGE THE IRS SAYS COMPANIES WILL BE REQUIRED TO REPORT ON THEIR 1993 RETURNS THEIR TOTAL NET OPERATING LOSS CARRYOVERS AVAILABLE NOT JUST THE AMOUNT BEING DEDUCTED IN THE CURRENT YEAR THESE DATA COULD HELP THE GOVERNMENT IMPROVE ITS ESTIMATES OF HOW MUCH REVENUE WOULD BE RAISED BY PROPOSED TAXLAW CHANGES THE GAO SAYS EARLIER THIS YEAR A GAO REPORT ESTIMATED THAT TWOTHIRDS OF ALL CORPORATIONS HAD AMASSED AT LEAST 246 BILLION IN NET OPERATING LOSS CARRYOVERS IN 1989 BUT THE GAO ALSO WARNED THIS FIGURE WAS FAR FROM COMPREHENSIVE THE TOTAL AMOUNT OF CARRYOVERS IS NOT ONLY LARGE AND GROWING BUT COULD BE LARGER THAN EXISTING DATA ALLOWED US TO IDENTIFY THE GAO SAID THE NEW DATA COULD ALSO HELP BOLSTER IRS ENFORCEMENT EFFORTS BRIEFS A MISERY INDEX MEASURING INDIVIDUAL TAXES AND MEDICAL COSTS AS A PERCENTAGE OF PERSONAL INCOME ROSE TO A RECORD HIGH IN THE THIRD QUARTER SAYS ECONOMIST NANCY LAZAR ENOUGH IS ENOUGH THERE HAVE BEEN 9371 TAXLAW CHANGES SINCE 1981 SAYS HAROLD APOLINSKY A BIRMINGHAM ALA LAWYER HE URGES TREASURY AND CONGRESS TO TAKE A REST WARNING A TREE WHICH IS CONSTANTLY SHAKEN WILL NOT BEAR FRUIT 9311170038 931117 LEISURE & ARTS OPERA DVORAK'S NYMPH SWIMS INTO VIEW BY MANUELA HOELTERHOFF NEW YORK ANTONIN DVORAK LAVISHED SOME OF HIS MOST TUNEFUL MUSIC ON RUSALKA AN OPERA ABOUT A MOURNFUL WATER SPRITE WHO WANTS TO LEAVE HER SOGGY WORLD TO DRYDOCK WITH A PRINCE ANOTHER COMPOSER MIGHT HAVE LOOKED AT THE LIBRETTO CONCOCTED BY JAROSLAV KVAPIL AND FELT A CLAMMY SENSE OF DREAD BUT DVORAK WAS COMPLETELY ENERGIZED WHEN THIS DUD DROPPED INTO HIS LAP AT THE TURN OF THE CENTURY A FOUNTAIN OF MELODY BURST FORTH WITHIN HIM AS HE PONDERED THE MOONLIT TREES THAT GLISTEN AROUND HER WATERY HOME AND THE DARK FOREST THAT ABUTS IT SO STEEPED IN MYSTERY EVEN SO RUSALKA HAS HOVERED JUST OUTSIDE THE MAINSTREAM SINCE ITS PREMIERE IN PRAGUE IN 1901 AND WAS NEVER STAGED AT THE METROPOLITAN OPERA UNTIL LAST WEEK I THINK I WASN'T THE ONLY ONE WHO SPED HOME FEELING A MIXTURE OF GRATITUDE AND RELIEF THERE WAS AN AWFUL LOT TO LIKE IN THIS LONGAWAITED PRODUCTION OF A PIECE KNOWN HERE MOSTLY FROM RECORDINGS AND CONCERT PERFORMANCES HOW WONDERFUL FOR INSTANCE TO HEAR THE SPECTRAL SPRITE HERSELF EMBODIED BY GABRIELA BENACKOVA THE CZECH DIVA WHO IS ALL TOO RARELY SIGHTED AT THE MET EXPRESSIVELY POIGNANT AND LIMPID IN TONE SHE WAS LOVELY TO BEHOLD IN RUSALKA'S WATERPROOF NIGHTGOWN NEITHER IS IT OFTEN THAT WE HEAR THE MET ORCHESTRA PLAY SO GORGEOUSLY FOR A CONDUCTOR WHO IS NOT JAMES LEVINE THE DOTING BUT NEVER DULL LEADERSHIP OF JOHN FIORE WHOSE PREVIOUS MET OUTINGS HAVE BEEN RESTRICTED TO MINOR REVIVALS BROUGHT A WARM GLOW TO A SCORE RICH IN MELODIC INVENTION AND TOTALLY DEVOID OF DRAMA AS THE EVENING SLOGGED ALONG THE HAPPINESS ONE FELT SEEING RUSALKA WAS GRADUALLY ECLIPSED BY THE EVEN HAPPIER THOUGHT THAT THERE WOULD SOON COME MAYBE EVEN BEFORE MIDNIGHT THE MAGICAL MOMENT WHEN THE SLIGHTED SPRITE WOULD DIVE DOWN DEEPLY INTO HER POND NEVER TO RETURN BUT IT SURE TOOK AN ETERNITY IN THE EDITION USED AT THE MET RUSALKA GOES ON FOR SO LONG I SPENT THE LAST HALFHOUR HOPING SOMEONE IN THE AUDIENCE WOULD FINALLY LEAP TO THE STAGE AND DROWN THE LITTLE ELF ALONG WITH THE PRODUCTION TEAM DIRECTOR OTTO SCHENK AND DESIGNER GUNTHER SCHNEIDERSIEMSSEN WHEN THESE TWO ARRIVE AT THE MET WITH THEIR ANTIQUATED FUSSILY LITERAL SETS AS THEY DO EVERY YEAR THE CLOCK STARTS TICKING BACKWARDS THE LEAFBLIGHTED PRODUCTION WHICH JUST COPIES NATURE INSTEAD OF EXTRACTING ITS ESSENCE ISN'T EVEN REALLY NEW BUT BOUGHT LOCK STOCK AND BURROW FROM THE VIENNA STAATSOPER A COMPANY WITH A COZY STYLE ONLY SLIGHTLY LESS REACTIONARY THAN THE MET'S DVORAK WROTE RUSALKA LATE IN LIFE WHEN HE HAD RETURNED FROM HIS OUTING IN THE NEW WORLD TO SETTLE DOWN IN HIS BELOVED PRAGUE WHICH SHOWERED HIM WITH ADORATION AND AWARDS IT IS SAID BY THOSE WHO KNEW HIM THAT HE WAS GUILELESS AND THE LEAST NEUROTIC OF COMPOSERS AT LEAST BY THE NUTTINESS STANDARDS SET BY TCHAIKOVSKY AND MAHLER AND THAT MAY ACCOUNT FOR THE TOUCHINGLY EARNEST WAY HE RESPONDED TO THIS TRIFLING TALE THERE ARE ALSO THOSE WHO SEE IN RUSALKA A PROFOUND EXAMPLE OF SELFLESS LOVE DESTINED FOR DOOM IN A COLD MODERN WORLD BUT I THINK THAT IS PROBABLY FISHING IN VERY SHALLOW WATERS AS THE CURTAIN ROSE WE SAW RUSALKA PERCHED HIGH ABOVE HER POND LOST IN THOUGHT SOON SHE WOULD EXHORT THE SILVERY MOON TO LIGHT UP THE DREAMS OF HER PRINCE IN THE OPERA'S LOVELIEST ARIA BUT BEFORE THAT RAVISHING MOMENT CAME WE ALL HAD TO ENDURE THREE NYMPHS CAVORTING ON THE SHORE LIKE EXILES FROM ANOTHER OPERA BY AN EVEN MORE LONGWINDED IF DEEPER COMPOSER MAYBE IN THE LAND OF MYTH THIS IS WHAT HAPPENED TO THE GIRLS WHO DIDN'T MAKE THE RHINE SWIM TEAM THEY GOT SENT TO THE MOLDAU MINORS THE THREE NYMPHS KORLISS UECKER KATHRYN KRASOVEC AND KITT REUTERFOSS SHOWED OFF ATTRACTIVE WELLTUNED VOICES THOUGH THEIR NAUTICAL ADVENTURES WERE MOSTLY LIMITED TO STICKING THEIR TOES INTO THE WATER AND GIGGLING WHAT HAPPENED HERE TO THE LIBRETTO'S SUGGESTIVELY MALEVOLENT DIMENSION I MISSED THIS MOST IN THE CHARACTER OF THE WITCH JEZIBABA WHO BRIEFLY MAKES RUSALKA'S DREAM FOR MORTALITY COME TRUE BUT AT A TERRIBLE PRICE COOKING UP SOME DRAGON'S BLOOD WITH BEATING BIRD HEARTS JEZIBABA GIVES RUSALKA THE SOUL SHE NEEDS TO TAKE HUMAN SHAPE AND MARRY THE PRINCE BUT SHE ALSO MAKES HER MUTE WITH SOMEWHAT UNHAPPY CONSEQUENCES FOR THE SECOND ACT IN WHICH RUSALKA MOSTLY GLOWERS MR SCHENK HAD DOLORA ZAJICK HOBBLE ABOUT LIKE A SWEET OLD BABUSHKA IN A SHAPELESS RAGGEDY GARMENT AND IN HIS ONLY INVENTIVE GESTURE GAVE HER SOME JUMPING TOADS AS COMPANIONS THEY WERE MILDLY AMUSING BUT NOT SCARY JUST LIKE MS ZAJICK WHO SANG WITH GUSTO BUT FOR ALL THIS EFFORT THINGS WENT BADLY IN THE NEXT TWO ACTS AND NOT ONLY FOR OUR UNSPRIGHTLY SPRITE JUST AS SHE WAS ABOUT TO MARRY HER BELOVED MORTAL AN EVIL FOREIGN PRINCESS APPEARED AT THE BALL IMMEDIATELY THE FECKLESS WORTHLESS MAN FORGOT ABOUT POOR RUSALKA THOUGH IT WAS NOT EASY TO SHARE HIS FASCINATION SINCE SHE LEFT THE MET MANY YEARS AGO JANIS MARTIN HAS HAD A HIGHLY REGARDED CAREER IN EUROPE AS A DRAMATIC SOPRANO BUT LAST WEEK HER VOICE SOUNDED SO WEAKLY HOLLOW AND WOBBLY AS THE PRINCESS THAT THE SILENT SPRITE SEEMED INFINITELY PREFERABLE MAYBE MS MARTIN HAD UNWISELY WILED AWAY SOME DULL OFFSTAGE TIME BY SAMPLING JEZIBABA'S BREW SERGEI KOPTCHAK THOUGH WAS IN FINE VOICE HIS USUALLY GRAVELLY BASS SOUNDING IMPRESSIVELY RESONANT AS THE CHIEF WATER SPRITE WHOSE WARNINGS ABOUT THE WAYS OF MEN RUSALKA SO BLITHELY IGNORED LEFT TO FEND FOR THEMSELVES AND WITH NO WATER HOME TO SINK INTO JAMES COURTNEY AND WENDY WHITE SANG STURDILY WHILE STANDING ABOUT AWKWARDLY AS THE PRINCE'S GAMEKEEPER AND HIS KITCHEN BOY THEIR RETURN TO THE STAGE IN THE LAST ACT COULD EASILY HAVE BEEN CUT ALONG WITH THE ANNOYING NYMPHS THEREBY ALLOWING THE FOCUS TO FALL ON THE ILLFATED COUPLE ADMITTEDLY THE EVENING'S VERY HANDSOME PRINCE NEIL ROSENSHEIN WAS NOT A MAN BEGGING FOR CLOSE ATTENTION LUNGING AT HIS NOTES HE SOUNDED RATHER LIKE A FAIRY TALE FROG WHO HAD YET TO ACHIEVE FULL METAMORPHOSIS INTO A PRINCELY HELDENTENOR ONLY IN THE LAST ACT DID THE WELLINTENTIONED MR ROSENSHEIN BEGIN TO CONTROL HIS UNWIELDY INSTRUMENT SINGING SOFTLY AS MS BENACKOVA SUCKED THE LIFE OUT OF HIM WITH A FINAL KISS RUSALKA PLAYS ON NOV 18 22 26 29 DEC 3 AND 8 THE MATINEE ON DEC 11 WILL BE BROADCAST NATIONALLY ON TEXACO METROPOLITAN OPERA RADIO NETWORK YOU CAN ALSO HEAR MS BENACKOVA IN HER SIGNATURE PART ON AN EXCELLENT SUPRAPHON SET RECORDED 10 YEARS AGO 9311170037 931117 BOEING WINS 550 MILLION UPS ORDER LOCKHEED GETS 890 MILLION ASIAN DEAL BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL IN A RESPITE FROM THE AEROSPACE INDUSTRY'S DOLDRUMS BOEING CO WON A 550 MILLION FREIGHTERPLANE ORDER FROM UNITED PARCEL SERVICE AND LOCKHEED CORP ARRANGED TO SELL F16 FIGHTERS TO SINGAPORE IN AN 890 MILLION TRANSACTION BOTH MANUFACTURERS ALSO HOPE SOON TO LAND OTHER BIG DEALS HOWEVER A LOCKHEED CAMPAIGN TO SELL 18 BILLION IN F16S TO ISRAEL HAS RUN INTO TOUGH COMPETITION FROM MCDONNELL DOUGLAS CORP'S ADVANCED F15E THE ORDER ANNOUNCED BY SEATTLEBASED BOEING FOR 10 OF BOEING'S MODEL 757 FREIGHTERS CEMENTS ITS SECOND LARGE SALE OF FREIGHTERS THIS YEAR TO UNITED PARCEL SERVICE OF AMERICA INC THE LOUISVILLE KY AIRFREIGHT COMPANY PLACED A LAUNCH ORDER IN JANUARY FOR 30 FREIGHTER VERSIONS OF BOEING'S BIGGER 767S THAT DEAL WAS VALUED AT ABOUT 24 BILLION WITH THE NEW ORDER UPS WILL HAVE ORDERED 65 OF THE MODEL 757 FREIGHTERS IT CURRENTLY HAS 35 IN SERVICE ALL THE NEW PLANES WILL BE DELIVERED IN 1994 AND 1995 A PERIOD IN WHICH BOEING WILL NEED EVERY DELIVERY IT CAN GET THE MANUFACTURER ALREADY HAS CUT PRODUCTION SHARPLY ON ALL ITS AIRLINER MODELS AND IT MUST DECIDE SOON WHETHER TO FURTHER SCALE BACK PRODUCTION OF ITS SMALLEST 737S AND ITS BIGGEST 747 JUMBO JETS SOUTHWEST AIRLINES IS NEAR TO PLACING A PIVOTAL ORDER THAT WILL LAUNCH BOEING'S PRODUCTION OF A NEW UPGRADED SERIES OF SMALLER JETS CALLED THE 737X LINE ACCORDING TO PEOPLE CLOSE TO THE NEGOTIATIONS BOEING AND DALLASBASED SOUTHWEST HAVEN'T CONFIRMED THAT AN ORDER IS CLOSE FOR THE PLANES WHICH WOULD BE SCHEDULED FOR DELIVERY LATER IN THE DECADE BOEING AND THE COMMERCIALAIRPLANE UNIT OF ST LOUISBASED MCDONNELL DOUGLAS STILL ARE AWAITING A MAJOR ORDER FROM SAUDIA THE SAUDI ARABIAN STATE AIRLINE FOR BOEING SUCH A DEAL COULD AVERT FURTHER CUTS IN 747 PRODUCTION MCDONNELL HOPES TO SELL SAUDIA THE WIDEBODY MD11 MODELS AND SMALLER MD80 AND MD90 AIRLINERS IT MAKES AT ITS AIRCRAFT PLANT IN LONG BEACH CALIF THE DEFENSE DEPARTMENT CONFIRMED SINGAPORE'S AGREEMENT TO PURCHASE 18 ADVANCED VERSIONS OF LOCKHEED'S F16 A SALE THAT IS LIKELY TO CLEAR CONGRESSIONAL APPROVALS AND BE COMPLETED BY THE END OF THE YEAR THE JETS MADE AT THE LOCKHEED FORT WORTH TEXAS FIGHTER PLANT WILL BE ACCOMPANIED BY SPARE ENGINES AIRTOAIR MISSILES AND TARGETING AND NAVIGATION EQUIPMENT ALL OF WHICH ARE INCLUDED IN THE 890 MILLION ORDER VALUE A LOCKHEED SPOKESMAN WOULDN'T CONFIRM THE SINGAPORE ORDER COMPANY OFFICIALS HAVE MAINTAINED THAT DESPITE CUTS IN BUYING PLANS BY SOME CUSTOMERS LOCKHEED STILL HOLDS ORDERS FOR MORE THAN 690 OF THE JETS VALUED AT MORE THAN 105 BILLION RECENTLY A TOTAL OF 200 PLANES WERE ELIMINATED FROM ITS F16 BACKLOG AS A RESULT OF CANCELED PURCHASES BY PAKISTAN AND THE US LOCKHEED HAS BEEN HOPING TO SELL ISRAEL 44 OF THE F16S BUT INDUSTRY OFFICIALS FAMILIAR WITH THE SITUATION HAVE SAID IN RECENT WEEKS THAT ISRAEL MAY NOW PREFER TO PURCHASE 20 SPECIAL VARIANTS OF THE MCDONNELL DOUGLAS F15ES THOSE AIRCRAFT WOULD INCLUDE FEATURES SUCH AS NIGHTVISION EQUIPMENT SIMILAR TO THE ENHANCEMENTS ON 72 OF THE F15ES SOLD TO SAUDI ARABIA IN A 9 BILLION DEAL ANNOUNCED LAST YEAR SEPARATELY LOCKHEED SAID IT WILL REORGANIZE ITS LANGUISHING CALCOMP INC SUBSIDIARY INTO TWO UNITS CALCOMP WHICH IS BASED IN ANAHEIM CALIF WILL REMAIN A DEVELOPER AND MANUFACTURER OF COMPUTER GRAPHICS PERIPHERALS WHILE ITS PROSPERING ACCESS GRAPHICS DIVISION WILL BECOME A STANDALONE LOCKHEED UNIT SELLING COMPUTERAIDED DESIGN EQUIPMENT LOCKHEED WHICH IS BASED IN CALABASAS CALIF ACQUIRED CALCOMP IN 1986 BUT PEOPLE FAMILIAR WITH THE UNIT'S PERSONNEL AND PERFORMANCE PROBLEMS CONFIRMED THAT LOCKHEED HAD STUDIED SELLING THE DIVISION UNTIL RECENTLY LOCKHEED ALSO HAS ORDERED A MANAGEMENT SHAKEUP THAT CALLS FOR REPLACEMENT OF SOME TOP EXECUTIVES THE COMPANY SAID VAL P PELINE LOCKHEED GROUP PRESIDENT FOR ELECTRONIC SYSTEMS HAS BEEN NAMED INTERIM CALCOMP PRESIDENT REPLACING WILLIAM P CONLIN WHO LEFT THE COMPANY TO PURSUE OTHER INTERESTS MR CONLIN SAID IN AN INTERVIEW THAT IT WAS TIME TO MOVE ON AND DO SOME OTHER THINGS AND HE LEFT BY MUTUAL AGREEMENT 9311170036 931117 INTERNATIONAL SIEMENS TO BUILD CHINA SUBWAY ERLANGEN GERMANY ELECTRONICS CONGLOMERATE SIEMENS AG ANNOUNCED A LETTER OF INTENT TO BUILD AN 18KILOMETER SUBWAY LINK IN CANTON CHINA IN PARTNERSHIP WITH AEG AG A CONTRACT FOR THE ORDER WHICH IS VALUED AT AT LEAST 628 MILLION MARKS 3711 MILLION WILL LIKELY BE SIGNED IN THE NEXT WEEK A SIEMENS SPOKESWOMAN SAID AEG IS THE ELECTRONICS DIVISION OF DAIMLERBENZ AG THE PACT IS PART OF A GENERAL PACKAGE OF AGREEMENTS ANNOUNCED BY GERMAN CHANCELLOR HELMUT KOHL YESTERDAY DURING A VISIT TO BEIJING 9311170035 931117 INTERNATIONAL DE BENEDETTI CLEARED OF CIVIL CHARGES TIED TO BANCO AMBROSIANO MILAN A MILAN APPEALS COURT CLEARED CARLO DE BENEDETTI CHAIRMAN OF ING C OLIVETTI & CO OF CIVIL CHARGES RELATED TO THE 1982 COLLAPSE OF BANCO AMBROSIANO MR DE BENEDETTI WHO WAS DEPUTY CHAIRMAN OF BANCO AMBROSIANO FOR ABOUT TWO MONTHS BEFORE IT COLLAPSED WON'T HAVE TO REIMBURSE THE APPROXIMATELY 30 BILLION LIRE 18 MILLION HE COLLECTED WHEN HE LEFT THE BANK THE COURT RULED THE CRIMINAL ASPECT OF THE CASE HOWEVER CONTINUES MR DE BENEDETTI IS WAITING TO APPEAL AN APRIL 1992 CRIMINAL JUDGMENT THAT FOUND HIM GUILTY OF FRAUDULENT BANKRUPTCY IN THE COLLAPSE OF THE BANK AND SENTENCED HIM TO MORE THAN SIX YEARS IN PRISON THE SENTENCE HAS BEEN SUSPENDED PENDING APPEAL A SPOKESMAN SAID MR DE BENEDETTI IS HOPEFUL THAT YESTERDAY'S CIVILCASE RULING WILL WEIGH IN HIS FAVOR IN THE CRIMINAL CASE MR DE BENEDETTI WAS RECRUITED IN EFFORTS TO SAVE THE TROUBLED BANK WHOSE COLLAPSE IN AUGUST 1982 REMAINS SHROUDED IN MYSTERY THE BANK'S CHAIRMAN ROBERTO CALVI WAS FOUND HANGING DEAD UNDER A LONDON BRIDGE THE SAME YEAR THE CIVIL SUIT WAS FILED BY COURTAPPOINTED LIQUIDATORS OF BANCO AMBROSIANO AND AIMED TO COLLECT MONEY THAT THE LIQUIDATORS CLAIMED WAS WRONGLY REMOVED FROM THE BANK A MILAN COURT REJECTED THE CLAIM IN 1989 THE LIQUIDATORS APPEALED THE DECISION BUT IT WAS UPHELD YESTERDAY THE BANCO AMBROSIANO CASE IS UNRELATED TO MR DE BENEDETTI'S CURRENT RUNIN WITH ITALY'S GIANT CLEAN HANDS SWEEP AGAINST ENTRENCHED CORRUPTION EARLIER THIS MONTH INVESTIGATORS CHARGED THAT MR DE BENEDETTI ACTIVELY SOLICITED BUSINESS THROUGH BRIBERY HE WAS JAILED NOV 2 BUT LATER RELEASED IN MAY MR DE BENEDETTI HAD VOLUNTARILY ADMITTED TO PROSECUTORS THAT OLIVETTI PAID MORE THAN 10 BILLION LIRE IN KICKBACKS IN THE 1980S TO WIN GOVERNMENT CONTRACTS MR DE BENEDETTI DESCRIBED A CLIMATE IN WHICH BUSINESSES WERE FORCED TO PAY THE BRIBES IN ORDER TO WIN SUCH CONTRACTS MAINTAINING HE WAS A VICTIM OF EXTORTION 9311170034 931117 ECONOMY JOBLESS TOTAL GREATLY EXCEEDS PRIOR ESTIMATES SURVEY CHANGE SHOWS LEVEL OF UNEMPLOYED PEOPLE IS ABOUT 600000 HIGHER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THERE ARE ROUGHLY 600000 MORE AMERICANS OUT OF WORK AND LOOKING FOR JOBS THAN PREVIOUSLY BELIEVED THE LABOR DEPARTMENT SAID MAJOR CHANGES IN THE WAY THE BUREAU OF LABOR STATISTICS TALLIES THE NUMBER OF JOBLESS WORKERS HAVE GIVEN DEPARTMENT OFFICIALS A BETTER HANDLE OF HOW MANY PEOPLE ARE UNEMPLOYED AND THERE APPEARS TO BE SEVERAL HUNDRED THOUSAND MORE OF THEM THE RESULT IS THAT THE HIGHPROFILE UNEMPLOYMENT RATE WILL VERY LIKELY BUMP UP BY HALF A PERCENTAGE POINT WHEN THE CHANGES WHICH INVOLVE ASKING BETTERCRAFTED QUESTIONS AND USING A COMPUTER INSTEAD OF A PAD OF PAPER TO RECORD SURVEY ANSWERS TAKE EFFECT IN JANUARY THE FIRST EMPLOYMENT REPORT UNDER THE NEW SYSTEM WILL BE ISSUED FEB 4 IF A HIGHER UNEMPLOYMENT RATE IS REPORTED AS A RESULT OF THE AGENCY'S CHANGES IT WOULDN'T MEAN THE ECONOMY HAS SUDDENLY GOTTEN WORSE IT WOULD INDICATE HOWEVER THAT THE DEPARTMENT HAS BEEN CONSISTENTLY UNDERESTIMATING THE NUMBER OF UNEMPLOYED PEOPLE OCTOBER'S UNEMPLOYMENT RATE THE LATEST FIGURE AVAILABLE ROSE TO 68 OF THE WORK FORCE PUTTING THE JOBLESS TOTAL AT ABOUT 88 MILLION PEOPLE SUCH REWORKING OF STATISTICS THOUGH OFTEN CONFOUNDS POLICY MAKERS WHO FIND THEY HAVE BEEN MAKING DECISIONS BASED ON ONE SET OF ASSUMPTIONS ONLY TO FIND THAT A DIFFERENT PICTURE IS MORE ACCURATE FOR MORE THAN A YEAR THE BLS HAS BEEN DOING A TESTRUN OF THE NEWLY DESIGNED HOUSEHOLD SURVEY WITH 12000 FAMILIES ITS USUAL MONTHLY SURVEY INCLUDES 60000 FAMILIES IT FOUND THAT BETWEEN SEPTEMBER 1992 AND AUGUST 1993 THE AVERAGE UNEMPLOYMENT RATE UNDER THE NEW METHOD WAS 76 BUT IN EMPLOYMENT REPORTS RELEASED TO THE PUBLIC DURING THE SAME PERIOD AND USING THE OLD SURVEY METHOD THE UNEMPLOYMENT RATE AVERAGED 71 THE DIFFERENCE REPRESENTS ABOUT 643000 PEOPLE THE DEPARTMENT WOULD PROVIDE ONLY ANNUAL AVERAGES AT ITS NEWS CONFERENCE YESTERDAY OFFICIALS CAUTION THAT JANUARY'S MONTHLY UNEMPLOYMENT RATE WON'T NECESSARILY BE 05 PERCENTAGE POINT HIGHER THAN DECEMBER'S THEY SAY THE RANGE OF INCREASE WILL MOST LIKELY BE BETWEEN 01 AND ONE PERCENTAGE POINT THE REVISIONS PLANNED FOR NEXT YEAR INVOLVE THE BUREAU'S SURVEY OF HOUSEHOLDS AND WON'T CHANGE ITS SEPARATE FIGURES ON PAYROLLS THE NEW METHOD WILL MAKE HISTORICAL COMPARISONS DIFFICULT ALTHOUGH THE DEPARTMENT WILL TRY TO DEVISE A WAY TO MAKE SUCH COMPARISONS THE DEPARTMENT FOUND THAT IT HAS MISCOUNTED ACROSS ALL MAJOR CATEGORIES OF WORKING GROUPS BUT THE BIGGEST VARIANCE IS AMONG ADULT WOMEN THE NEW SURVEY FOUND THE UNEMPLOYMENT RATE AVERAGED ROUGHLY 68 AMONG ADULT WOMEN DURING THE PAST YEAR WHILE THE PUBLISHED SURVEY PUT THE RATE AT 6 BLS COMMISSIONER KATHARINE ABRAHAM SAID THE DISCREPANCY WAS GREATEST AMONG WOMEN BECAUSE THE QUESTIONS WERE NOT DESIGNED TO ELICIT ANSWERS FROM WOMEN IN PARTICULAR WHEN THE QUESTIONS WERE DESIGNED DECADES AGO WOMEN WEREN'T A SIGNIFICANT FORCE IN THE LABOR MARKET FOR INSTANCE AN INTERVIEWER WOULD ASK A WOMAN WHAT WERE YOU DOING FOR WORK LAST WEEK KEEPING HOUSE OR SOMETHING ELSE THE NEW SURVEY INSTEAD ASKS ALL RESPONDENTS LAST WEEK DID YOU DO ANY WORK FOR EITHER PAY OR PROFIT ONE BIG CHANGE IN THE SURVEY INVOLVES SOCALLED DISCOURAGED WORKERS NOW TO BE QUALIFIED AS A DISCOURAGED WORKER A PERSON HAS TO SAY ONLY THAT HE IS DISCOURAGED ABOUT FINDING WORK BUT WANTS A JOB IN THE NEW SURVEY A WORKER WILL HAVE TO FIT BOTH THOSE CRITERIA BUT ALSO HAVE BEEN LOOKING FOR WORK IN THE PAST YEAR AND BE PHYSICALLY ABLE TO WORK AS A RESULT THE NUMBER OF DISCOURAGED WORKERS WHICH TOTALED ABOUT 11 MILLION IN THE THIRD QUARTER IS EXPECTED TO DROP SIGNIFICANTLY THE DEPARTMENT WILL ALSO OBTAIN DATA ON THE NUMBER OF AMERICANS WHO HAVE TWO OR MORE JOBS EACH MONTH THAT MAY HELP THE BLS AND ANALYSTS UNDERSTAND THE DIFFERENCES BETWEEN THE DEPARTMENT'S HOUSEHOLD AND ESTABLISHMENT SURVEY OFTEN THE ESTABLISHMENT SURVEY WHICH SURVEYS BUSINESSES COUNTS MORE JOBS THAN THE HOUSEHOLD SURVEY THE DIFFERENCE COULD PARTIALLY BE EXPLAINED IF THE PEOPLE IN THE HOUSEHOLD SURVEY HELD MORE THAN ONE JOB 9311170033 931117 MARKETING & MEDIA DETROIT RADIO STATION SALE CINCINNATI GREAT AMERICAN TELEVISION & RADIO CO SAID IT SIGNED A LETTER OF INTENT TO SELL WRIFFM IN DETROIT TO GREATER MEDIA INC FOR 115 MILLION THE SALE IS SUBJECT TO A DEFINITIVE AGREEMENT AND APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION GREATER MEDIA A CLOSELY HELD EAST BRUNSWICK NJ COMPANY EXPECTS TO START OPERATING WRIF SOON UNDER AN INTERIM MARKETING ACCORD WITH GREAT AMERICAN A UNIT OF AMERICAN FINANCIAL CO 9311170032 931117 SEC IS CHALLENGING FUNDING FOR PLANS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EVEN SOME OF THE HEALTHIEST PENSION PLANS MAY SOON LOOK A LITTLE PALE THE SECURITIES AND EXCHANGE COMMISSION IS LOBBING WHAT AMOUNTS TO A GRENADE INTO THE BOOKS OF MANY LARGE COMPANIES BY EFFECTIVELY CHALLENGING WHETHER MANY CORPORATE PENSION PLANS ARE AS FAT AND HAPPY AS THEY SEEM AS A RESULT A NUMBER OF COMPANIES THAT TODAY ARE HAPPILY SITTING WITH MORE ASSETS THAN THEY NEED TO MEET THEIR PENSION OBLIGATIONS WILL LOSE THIS CHERISHED OVERFUNDED STATUS THIS YEAR FALLING INTO THE UNDERFUNDED REALM AND THE CORPORATE FALLOUT WILL BE BIG SOME COMPANIES WILL BE FORCED TO START MAKING CASH CONTRIBUTIONS TO THEIR PENSION FUNDS ONCE AGAIN SOME WILL SHOW LOWER EARNINGS AND SOME WILL BE DISCLOSING THE TAB THEY FACE FOR PENSION OBLIGATIONS ON THEIR BALANCE SHEETS FOR THE FIRST TIME PEOPLE ARE SITTING UP AND TAKING NOTICE BECAUSE IT WILL MEAN DISCLOSING LARGER PENSION OBLIGATIONS THAN THEY HAVE IN THE PAST SAYS MARK MACTAS VICE PRESIDENT AND ACTUARIAL CONSULTANT AT TOWERS PERRIN IN CHICAGO TECHNICALLY THE SEC IS STEPPING UP THE PRESSURE BY MAKING A STRICTER APPLICATION OF EXISTING PENSIONACCOUNTING STANDARDS BUT THERE'S NO DOUBT OF THE AGENCY'S RESOLVE THE AGENCY IS CONCERNED THAT MANY COMPANIES HAVE BEEN MINIMIZING THEIR OBLIGATIONS TO RETIREES BY USING A HIGH ASSUMED INTEREST RATE TO CALCULATE TODAY'S PENSION LIABILITY TO BETTER REFLECT TODAY'S LOWERRATE CLIMATE THE SEC IS URGING COMPANIES TO REDUCE THIS DISCOUNT RATE TO ABOUT 7 ROUGHLY THE CURRENT YIELD ON LONGTERM HIGHGRADE CORPORATE BONDS ACCORDING TO A GOLDMAN SACHS & CO STUDY 307 COMPANIES OUT OF 366 SURVEYED ASSUME A DISCOUNT RATE OF 8 OR MORE TO CALCULATE PENSION OBLIGATIONS THESE COMPANIES WILL SHOW A HIGHER PENSION LIABILITY IF THEY ASSUME A 7 DISCOUNT RATE ABOUT 80 OF COMPANIES WITH DEFINEDBENEFIT PENSION PLANS ARE CURRENTLY OVERFUNDED DEFINEDBENEFIT PLANS ARE THE KIND WHERE THE COMPANY PROMISES TO PAY A CERTAIN AMOUNT AT RETIREMENT RATHER THAN SETTING ASIDE MONEY FOR AN EMPLOYEE TO MANAGE FOR GOOD OR ILL MANY HAVE RELIED ON ROBUST STOCK AND BOND MARKETS AS WELL AS AGGRESSIVE DISCOUNT ASSUMPTIONS TO AVOID PUTTING MONEY INTO THE PENSION FUNDS EVEN THOUGH COMPANIES USE DIFFERENT ASSUMPTIONS FOR ACCOUNTING AND FOR FUNDING THE ACCOUNTING CHANGE WILL MAKE IT HARD FOR THEM TO RESIST THE PRESSURE TO CONTRIBUTE CASH RICHARD JOS AN ACTUARY WITH WYATT CO SAYS HE HAS BEEN PUSHING CLIENTS TO START FUNDING AGAIN IT'S A SHOCK TO THEM BECAUSE THEY WERE SO WELL OVERFUNDED DURING THE 1980S HE SAYS I'M NOT GOING TO MINCE WORDS THEY ARE NOT HAPPY CAMPERS MANY SHAREHOLDERS WON'T BE EITHER LOWERING THE DISCOUNT RATE ONE PERCENTAGE POINT CAN INCREASE A COMPANY'S PENSION LIABILITY BY BETWEEN 10 AND 25 DEPENDING ON THE AGE OF THE WORK FORCE AND THE RATIO OF CURRENT EMPLOYEES TO RETIREES THE SEC'S STANCE WILL INCREASE THE TOTAL UNDERFUNDING OF DEFINEDBENEFIT PENSION PLANS TO 38 BILLION FROM THE 18 BILLION OR SO THAT COMPANIES CURRENTLY SHOW ON FINANCIAL STATEMENTS ACCORDING TO CALCULATIONS BY THE PENSION BENEFIT GUARANTY CORP THE GOVERNMENT AGENCY THAT INSURES PRIVATE PENSION PLANS THE IMPACT OF THE SEC'S STRICTURE WILL VARY MANY COMPANIES WITH OVERFUNDED PENSION FUNDS HAVE RECOGNIZED SOCALLED PENSION INCOME IN EARNINGS AS A RESULT OF QUIRKS IN THE ACCOUNTING RULES USED TO CALCULATE ANNUAL PENSION EXPENSE THANKS TO PENSION ACCOUNTING GENERAL ELECTRIC CO'S 1992 NET INCOME WAS 494 MILLION OR 12 HIGHER THAN IT OTHERWISE WOULD HAVE BEEN ACCORDING TO THE GOLDMAN SACHS REPORT GE WHICH DIDN'T RETURN CALLS USED A NOTUNUSUAL 9 DISCOUNTRATE ASSUMPTION A LOWER ASSUMPTION WOULD MAKE THAT CONTRIBUTION TO EARNINGS SHRINK GE AND OTHER COMPANIES IN THE TABLE WOULDN'T NECESSARILY BECOME UNDERFUNDED MANY COMPANIES WITH MODEST OVERFUNDING AND HIGH DISCOUNT ASSUMPTIONS COULD SHOW A BALANCE SHEET LIABILITY AS A RESULT OF THE CHANGE ABBOTT LABORATORIES FOR EXAMPLE ENJOYS A 293 MILLION SURPLUS IN ITS PENSION FUND DUE PARTLY TO THE 9 DISCOUNT RATE THE COMPANY USES TO CALCULATE PENSION OBLIGATIONS BUT THE NASTIEST SHOCK MAY COME TO SHAREHOLDERS OF COMPANIES THAT ALREADY SHOW A SMALL LIABILITY IF YOU HAVE A 15 MILLION LIABILITY ON YOUR BALANCE SHEET BECAUSE PENSION ASSETS ARE 85 MILLION AND PENSION LIABILITIES ARE 100 MILLION A ONEPERCENTAGEPOINT CHANGE IN THE DISCOUNT RATE WILL ALMOST DOUBLE THE NUMBER ON THE COMPANY'S BALANCE SHEET SAYS LAWRENCE BADER A SALOMON BROTHERS VICE PRESIDENT FOR EXAMPLE THE 161 MILLION UNFUNDED LIABILITY MERCK & CO SHOWS ON ITS BALANCE SHEET WILL SWELL WHEN THE COMPANY LOWERS ITS DISCOUNT RATE TO 7 FROM 9 THE SEC'S HARD LINE IS COMING AS A SURPRISE TO MANY COMPANIES CONSULTANTS SAY EVEN THOUGH THE AGENCY IS MERELY ENFORCING AN ACCOUNTING STANDARD THAT HAS BEEN IN EFFECT SINCE 1987 THE SEC RECENTLY DECIDED TO INCREASE PRESSURE ON COMPANIES TO CONFORM TO THE ACCOUNTING STANDARD FINANCIAL ACCOUNTING STANDARD 87 AFTER WORD GOT OUT THAT IT WAS CONFERRING WITH COMPANIES PRIVATELY SEC CHIEF ACCOUNTANT WALTER SCHUETZE ADDRESSED A LETTER TO TIMOTHY S LUCAS DIRECTOR OF RESEARCH AT THE FINANCIAL ACCOUNTING STANDARDS BOARD IN SEPTEMBER TO EMPHASIZE THAT THE SEC EXPECTS REGISTRANTS TO USE DISCOUNT RATES THAT REFLECT THE CURRENT LEVEL OF INTEREST RATES AT THE NEXT MEASUREMENT DATE NAMELY THE END OF THE CORPORATE FISCAL YEAR 9311170031 931117 DELTA PLANS TO SHED LOSSRIDDEN ROUTES ANY WAY IT CAN BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES SAID IT PLANS TO SELL TRADE OR ABANDON UNDERPERFORMING TRANSATLANTIC ROUTES OVER THE NEXT SEVERAL MONTHS THE ATLANTABASED AIRLINE WHICH HAS HAD HUNDREDS OF MILLIONS OF DOLLARS IN LOSSES ON EUROPEAN OPERATIONS BOUGHT FROM PAN AM CORP IN 1991 WOULDN'T SAY WHICH ROUTES IT IS CONSIDERING SHEDDING BUT CHAIRMAN RONALD W ALLEN SAID IN A STATEMENT THAT A RECONFIGURATION COULD INVOLVE CHANGES TO AS MUCH AS A THIRD OF OUR JFK TRANSATLANTIC SYSTEM DELTA CURRENTLY FLIES TO MORE THAN A DOZEN EUROPEAN CITIES FROM JOHN F KENNEDY INTERNATIONAL AIRPORT IN NEW YORK WHILE DELTA HAS BEEN SAYING FOR SOME TIME THAT IT WAS LOOKING AT WAYS TO CUT LOSSES IN THAT MARKET YESTERDAY'S ANNOUNCEMENT WAS THE FIRST INDICATION THAT THE AIRLINE IS PREPARED TO MAKE A SWEEPING OVERHAUL WHILE DELTA HAS RESISTED ABANDONING ROUTES IN THE PAST NOW A SPOKESMAN SAYS THE COMPANY HAS SET DEADLINES FOR CERTAIN ROUTES TO IMPROVE THEIR PROFITABILITY IF THEY FAIL TO RESPOND TO MARKETING EFFORTS THEY'LL BE TRADED SOLD OR ABANDONED HE SAID AS PART OF ITS REVAMPING DELTA SAID IT ALSO WILL RECONFIGURE DOMESTIC OPERATIONS OUT OF JFK TO IMPROVE THE FLOW OF PASSENGERS TO AND FROM INTERNATIONAL FLIGHTS THE AIRLINE WILL SPLIT ITS CURRENT FLIGHTS INTO TWO ARRIVAL AND DEPARTURE COMPLEXES AND ADD 15 NEW FLIGHTS ONCE AGAIN DELTA WOULDN'T SAY WHERE IT'S ADDING FLIGHTS DELTA PLANS TO BEGIN DISPOSING OF INTERNATIONAL ROUTES IN EARLY 1994 WHERE POSSIBLE IT WILL TRY TO STRIKE CODESHARING AGREEMENTS WITH OTHER AIRLINES UNDER THOSE PACTS CARRIERS SHARE CODES IN COMPUTER RESERVATION SYSTEMS AND CAN SELL SEATS ON EACH OTHERS' FLIGHTS DELTA ALSO SAID IT IS SETTING UP A TEAM TO INVESTIGATE WHETHER A LOWCOST AIRLINEWITHINANAIRLINE IS FEASIBLE MR ALLEN HAD SAID IN SEPTEMBER THAT THE AIRLINE WAS LOOKING INTO SUCH A MOVE AS HAVE ITS COMPETITORS CONTINENTAL AIRLINES LAST MONTH INITIATED LOWFARE FREQUENT FLIGHTS ON A SYSTEM THAT BY NEXT MONTH WILL ACCOUNT FOR ROUGHLY 10 OF ITS DAILY FLIGHTS UAL CORP'S UNITED AIRLINES RECENTLY TALKED WITH ITS UNIONS ABOUT SUCH AN OPERATION AMR CORP'S AMERICAN AIRLINES DISCARDED A PLAN MORE THAN A YEAR AGO 9311170030 931117 AMR'S AIRLINE UNIT FACES DISRUPTIONS ON SHORTER ROUTES IF ATTENDANTS STRIKE BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL TRAVEL AGENTS SAY A THREATENED STRIKE BY FLIGHT ATTENDANTS AT AMERICAN AIRLINES COULD DISRUPT SERVICE AND INCONVENIENCE PASSENGERS ON SHORTER LESSTRAVELED ROUTES THE AGENTS SAY AMERICAN AIRLINES IS TELLING THEM IT EXPECTS TO BE ABLE TO OPERATE ITS LARGEST HUBS IF THE FLIGHT ATTENDANTS STRIKE TOMORROW AT 6 AM CST BUT EVEN IF AMERICAN MAINTAINS MOST OF ITS SCHEDULE THAT COULD CAUSE FLIGHT CANCELLATIONS THROUGHOUT THE CARRIER'S EXTENSIVE ROUTE SYSTEM THAT'S BECAUSE EVEN A FEW FLIGHTS GROUNDED IN ONE PART OF THE COUNTRY MEANS THOSE PLANES CAN'T GET TO THEIR NEXT DESTINATIONS AMERICAN A UNIT OF AMR CORP CONTINUES TO SAY IT HOPES TO AVERT A STRIKE AND TO THAT END ITS NEGOTIATORS YESTERDAY BEGAN LASTDITCH TALKS UNDER THE SUPERVISION OF FEDERAL MEDIATORS WITH THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS NO WORD ON THE OUTCOME WAS AVAILABLE LATE YESTERDAY AND UNION REPRESENTATIVES SAID THEY DON'T EXPECT TO HEAR ANYTHING UNTIL LATE TONIGHT BUT KRISTIN DOUGALL PRESIDENT OF UNIGLOBE PREMIER TRAVEL IN CHICAGO SAID SHE'S BEEN TOLD BY AN AMERICAN REPRESENTATIVE THAT THE CARRIER IS PROMISING TO KEEP SOME OF ITS HUBS OPEN I TALKED TO MY REP AT AMERICAN AND HE INDICATED THEY FELT STRONGLY THAT THEY COULD KEEP CHICAGO'S O'HARE DALLAS FORT WORTH AND MIAMI RELATIVELY OPERATIONAL SHE SAID ABOUT THE OTHER TWO HUBS RALEIGHDURHAM AND NASHVILLE WHEN HE TALKED HE WAS NOT TERRIBLY CONFIDENT DAVID PERELMAN OF DMS TRAVEL NEW YORK SAID HE ATTENDED A MEETING IN DALLAS LAST WEEK AT WHICH SENIOR AMERICAN EXECUTIVES SAID THEY EXPECT TO FLY THROUGH THE STRIKE WITH A COMBINATION OF FLIGHT ATTENDANTS WHO CROSS PICKET LINES AND OTHER EMPLOYEES TRAINED AS FLIGHT ATTENDANTS BUT HE SAID HE EXPECTED THE AIRLINE TO CONSOLIDATE SOME FLIGHTS SUCH AS MAKING ITS HOURLY SHUTTLE BETWEEN NEW YORK'S LAGUARDIA AIRPORT AND CHICAGO EVERY OTHER HOUR BOTH MS DOUGALL AND MR PERELMAN SAID THEY DON'T EXPECT A STRIKE ALTHOUGH AS A PRECAUTION THEY'RE ADVISING PASSENGERS TO BOOK SEATS ON OTHER AIRLINES FOR ITS PART AMERICAN SAYS IT PLANS TO STICK TO ITS SCHEDULE I THINK PROBABLY WHAT TRAVEL AGENTS ARE HEARING IS OUR ATTEMPT TO ASSURE THEM WE'RE TRYING TO OPERATE AS MUCH AS POSSIBLE A COMPANY SPOKESMAN SAID AMERICAN'S CONTINGENCY PLANS ARE SIMILAR TO WHAT THE CARRIER DOES WHEN A MAJOR STORM HITS IN ONE PART OF THE COUNTRY HE SAID WE'RE COMMITTED TO FULLY OPERATING THE AIRLINE AND IF YOU CAN'T DO THAT YOU PRIORITIZE BASED ON THE DESIRE TO INCONVENIENCE THE FEWEST NUMBER OF PEOPLE THE FACT THAT AMERICAN AND ITS 21000 FLIGHT ATTENDANTS ARE WITHIN A DAY OF A SCHEDULED STRIKE IS AN INDICATION THAT THE STATE OF AIRLINE LABOR RELATIONS IS AT ITS LOWEST EBB IN YEARS AMERICAN AFTER LOSING BILLIONS OF DOLLARS SINCE 1990 AND BEGINNING TO CUT UNPROFITABLE OPERATIONS WANTS MORE CONTROL OVER HOW MANY FLIGHT ATTENDANTS IT EMPLOYS THEIR WORK RULES AND HOW THEY'RE PAID THE FLIGHTATTENDANTS' UNION WHICH HAS AGREED TO CONCESSIONS IN PREVIOUS CONTRACTS SO FAR ISN'T WILLING TO GIVE AMERICAN THE CONTROL THE AIRLINE IS SEEKING AS THEY HEADED INTO YESTERDAY'S TALKS BOTH SIDES WERE WAITING FOR THE OTHER TO MAKE THE FIRST MOVE A STRIKE AT AMERICAN COULD HAVE A RIPPLE EFFECT WELL BEYOND THE CARRIER ITSELF COMING ONLY DAYS BEFORE THE BUSIEST TRAVEL SEASON OF THE YEAR A STRIKE COULD ALSO HURT OTHER AIRLINES FINANCIALLY WHILE MOST CARRIERS REPORT THANKSGIVING WEEK RESERVATIONS ARE AHEAD OF LAST YEAR NO ONE IS SURE WHETHER THOSE PASSENGERS WILL SHOW UP OR WHETHER THEY REPRESENT DOUBLE BOOKINGS FROM TRAVELERS WHO RESERVED SEATS ON OTHER AIRLINES IN CASE THEY CAN'T FLY ON AMERICAN IF THERE'S A STRIKE AIRLINES WILL FACE SOME DENIED BOARDINGS OF PASSENGERS AND IF NOT THEY COULD FACE A HEAVY REVENUE LOSS SAID DONALD GARVETT A VICE PRESIDENT AT SIMAT HELLIESON AND EICHNER AN AIRLINECONSULTING FIRM AMERICAN WILL BE A BIG LOSER BUT EVERYONE ELSE COULD BE TOO AMR SHARES CLOSED AT 7175 A SHARE UP 375 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9311170029 931117 SMALL STOCK FOCUS STOCKS FALL AS MANY TRADERS REMAIN CAUTIOUS IN ANTICIPATION OF NAFTA VOTE BY LAURENCE BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS SPENT YESTERDAY IN NEGATIVE TERRITORY UNABLE TO GATHER ENOUGH MOMENTUM TO MATCH THE AFTERNOON RALLY THAT PROPELLED THE DOW JONES INDUSTRIAL AVERAGE TO A RECORD CLOSE ABOVE THE 3710 MARK TRADERS SAID THE UNCERTAINTY OF HOW THE HOUSE WILL VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT TODAY CONTINUED TO LOOM OVER THE SMALLCAPITALIZATION MARKET WITH INVESTORS CONTENT TO SIT ON THE SIDELINES BUT TRADERS IN OTHER MARKETS TOOK A MORE POSITIVE VIEW DRIVING UP NOT ONLY THE INDUSTRIALS BUT ALSO THE DOLLAR AGAINST OTHER CURRENCIES EVERYONE'S HANGING ON WITH WHAT'S GOING ON WITH NAFTA SAID CLAUDIA MOTT DIRECTOR OF SMALLCAPITALIZATION RESEARCH AT PRUDENTIAL SECURITIES THERE'S NO STRONG FUNDAMENTAL REASON WHY THERE SHOULD BE A PROBLEM WITH SMALLCAP STOCKS SEVERAL TRADERS SAID THE IMPENDING VOTE ON NAFTA HAS DAMPED MARKET ACTIVITY IN A THINLY TRADED MARKET A FEW PEOPLE TAKING PROFITS CAN CAUSE THE MARKET NOT TO DO WELL MS MOTT SAID BOTH THE RUSSELL 2000 INDEX WHICH TRACKS SMALLCAP STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR MARKETS AND THE NASDAQ COMPOSITE INDEX ENDED THE DAY WELL OFF THEIR SESSION LOWS TRADERS SAID THE STOCKS BOUNCED BACK AS A RESULT OF A SPURT OF LATEDAY RETAILINVESTOR INTEREST THAT WAS BROUGHT ON BY INCREASING SPECULATION THAT PRONAFTA FORCES WILL BE ABLE TO MUSTER ENOUGH VOTES TO PASS THE CRUCIAL HOUSE TEST RETAIL INVESTORS ARE STARTING TO COME BACK SAID JERRY MULLINS HEAD OF OVERTHECOUNTER TRADING AT DEAN WITTER REYNOLDS INC HE SAID THAT WITH THE INCREASING LIKELIHOOD OF NAFTA APPROVAL UNCERTAINTY IS BEING TAKEN OUT OF THE MARKET NATIONAL MARKET DECLINERS OUTPACED ADVANCERS 1320 TO 947 AND NATIONAL MARKET VOLUME WAS 259681800 SHARES COMPARED WITH 221665600 MONDAY ALTHOUGH SOME INVESTORS APPEAR WILLING TO BET ON THE OUTCOME OF THE NAFTA VOTE UNTIL THE TRADE PACT'S FATE IS OFFICIALLY SEALED ONE WAY OR THE OTHER IT'S A WAITANDSEE SITUATION THAT WILL LIMIT ACTIVITY PRUDENTIAL'S MS MOTT SAID BUT SHE SAID THAT AFTER CONGRESS DEALS WITH THE ISSUE AND NAFTA IS NO LONGER A DISTRACTION INVESTORS WILL COME BACK TO EARNINGS AND OTHER FUNDAMENTALS AS THEIR INVESTMENT GUIDES DEAN WITTER'S MR MULLINS SAID SOME OF THE LATEDAY RETAIL INTEREST THAT HELPED PUSH OVERTHECOUNTER STOCKS OFF THEIR LOWS WENT INTO FASTFOOD COMPANY STOCKS TWO OF THE COMPANIES HE MENTIONED AS ATTRACTING ATTENTION WERE BOSTON CHICKEN WHICH ENDED THE DAY UP 3 1/4 OR 84 AT 42 AND CHECKERS DRIVEIN RESTAURANTS WHICH FINISHED THE DAY DOWN 3/8 OR 27 AT 13 1/2 BUT WHICH CLOSED A FULL POINT OFF ITS SESSION LOW MR MULLINS ALSO SAID THERE WAS LATEDAY INTEREST IN TECHNOLOGY ISSUES COMPUTER CONCEPTS ENDED THE DAY UP 1/2 OR 9 AT 5 13/16 EARLIER IN THE DAY THE COMPANY REPORTED THIRDQUARTER EARNINGS OF 10 CENTS A SHARE COMPARED WITH A LOSS OF FIVE CENTS IN THE YEAREARLIER PERIOD THE COMPANY ALSO SAID IT IS IN AN EXCELLENT POSITION TO MEET OR EXCEED FORECAST EARNINGS GOALS FOR THE YEAR OF 25 CENTS TO 30 CENTS A SHARE TWO OF THE BIGGEST DECLINERS AMONG THE MOST ACTIVE SMALLCOMPANY STOCKS WERE MORGRO CHEMICAL AND LONE STAR CASINO WHOSE NAMES BELIE THEIR SIMILARITY MORGRO CHEMICAL YESTERDAY SAID ITS SHAREHOLDERS RECENTLY VOTED TO CHANGE THE COMPANY'S NAME TO GLOBAL CASINOS AND THAT THE COMPANY WHICH RECENTLY SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CASINOS USA INC IS HEADED IN THE GAMBLING DIRECTION CASINO AND OTHER GAMBLINGRELATED STOCKS BOTH SMALL AND LARGE WERE DOWN YESTERDAY IN THE THIRD ROUND OF PROFITTAKING IN THE PAST FOUR WEEKS THE DOW JONES INDUSTRY GROUP OF CASINO STOCKS WAS DOWN 125 ON A MARKET CAPITALIZATIONWEIGHTED BASIS MORGRO FELL 3/8 OR 8 TO 4 5/16 AFTER YESTERDAY'S GAIN OF 1 7/32 AND LONE STAR FELL 7/16 OR 75 TO 5 3/8 ACTEL WAS UNCHANGED AT 12 AFTER BEING DOWN AS MUCH AS 3 THE COMPANY SAID SHORTTERM MANUFACTURING PROBLEMS WILL CAUSE FOURTHQUARTER REVENUE TO FALL ABOUT 3 MILLION SHORT OF ANALYSTS' ESTIMATES THE COMPANY SAID IT EXPECTS TO BREAK EVEN IN THE FOURTH QUARTER HEALTH RISK MANAGEMENT WAS UP 1 1/4 OR 10 TO 13 3/4 HELPED BY NEWS THAT OPPENHEIMER & CO INITIATED COVERAGE OF THE STOCK WITH AN ANALYST BUY RECOMMENDATION OPPENHEIMER EXPECTS THE COMPANY TO HAVE EARNINGS OF 80 CENTS A SHARE FOR THE FISCAL YEAR ENDING JUNE 1994 ON AN ASREPORTED BASIS COMPARED WITH 57 CENTS IN THE YEAREARLIER PERIOD NICHOLS INSTITUTE SAID IT HAS INITIATED A CORPORATE RESTRUCTURING PROGRAM AND THAT IT EXPECTS TO TAKE A MATERIAL CHARGE IN THE FOURTH QUARTER THE COMPANY ALSO SAID THAT A SIGNIFICANT RESTRUCTURING CHARGE WILL CAUSE THE COMPANY TO VIOLATE CERTAIN OF ITS EXISTING LOAN COVENANTS THE COMPANY'S STOCK FELL 1 OR 14 TO CLOSE THE DAY AT 6 1/8 PERFUMANIA WHICH ROSE 1 1/8 OR 184 TO 7 1/4 IS IN PRELIMINARY DISCUSSIONS WITH REVLON CONSUMER PRODUCTS OVER A POSSIBLE BUSINESS COMBINATION OF PERFUMANIA AND REVLON'S PRESTIGE FRAGRANCES & COSMETICS UNIT IN RETURN FOR PERFUMANIA STOCK SCANDINAVIAN BROADCASTING SYSTEM WAS UP 1 3/8 OR 74 AT 20 AFTER IT SAID CAPITAL CITIES/ABC WILL ACQUIRE 21 OF ITS STOCK APPLIED BIOSCIENCE POSTED A LOSS OF 1 1/8 OR 191 TO 4 3/4 AFTER THE COMPANY LATE YESTERDAY REPORTED A THIRDQUARTER LOSS OF 49 CENTS A SHARE ON A CHARGE OF 94 MILLION COMPARED WITH A NET OF 15 CENTS IN THE YEARAGO PERIOD PCI SERVICES WAS UP 1 OR 111 AT 10 AFTER REPORTING LATE YESTERDAY THAT IT HAD FOURTHQUARTER EARNINGS OF 28 CENTS A SHARE COMPARED WITH YEARAGO EARNINGS OF 26 CENTS THE COMPANY TOOK A NONRECURRING CHARGE OF FIVE CENTS 9311170028 931117 INTERNATIONAL BRIEF SEDGWICK GROUP PLC BRITISH FIRM POSTS 14 RISE IN PRETAX PROFIT FOR 9 MONTHS BRITISH INSURER SEDGWICK GROUP PLC SAID PRETAX PROFIT ROSE 14 FOR THE NINE MONTHS ENDED SEPT 30 PRETAX PROFIT ROSE TO 636 MILLION 947 MILLION FROM 558 MILLION A YEAR EARLIER THE RESULT WAS SLIGHTLY HIGHER THAN MARKET ESTIMATES OF 62 MILLION RISES IN BROKERAGE AND FEE INCOME WERE OFFSET BY A SIMILAR RISE 4 IN EXPENSES THE COMPANY SAID ITS RETAIL INSURANCE OPERATIONS IN THE US THE UK AND THE ASIA/PACIFIC REGION ACHIEVED ENCOURAGING INCREASES IN BROKERAGE AND FEE INCOME SIMILAR GAINS ALSO WERE ACHIEVED IN ITS WORLDWIDE CONSULTANCY OPERATIONS AND ITS REINSURANCE BUSINESS IN NORTH AMERICA THE COMPANY SAID ITS REINSURANCE BUSINESS IN THE UK CONTINUED TO BE HURT BY LACK OF CAPACITY IN THE LONDON MARKET PRETAX PROFIT WAS HELPED SUBSTANTIALLY BY EXCHANGE RATES THE COMPANY SAID IT DIDN'T PROVIDE FIGURES 9311170026 931117 INSIDE TRACK INSIDERS AT WARNERLAMBERT SELL SHARES BY WARREN GETLER AND ELYSE TANOUYE STAFF REPORTERS OF THE WALL STREET JOURNAL AMID WEAK EARNINGS AND MARKET CONCERN ABOUT A NEW DRUG INSIDERS AT WARNERLAMBERT CO HAVE BEEN SELLING STOCK A CLUSTER OF SIX SENIOR EXECUTIVES AND ONE DIRECTOR AT THE MORRIS PLAINS NJ CONSUMERPRODUCTS AND PHARMACEUTICALS CONCERN SOLD A COMBINED 25 MILLION OF STOCK EQUIVALENT TO AN AVERAGE 24 OF THEIR DIRECT HOLDINGS ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS THE INSIDERS INCLUDING CHAIRMAN MELVIN GOODES SOLD A TOTAL 36509 SHARES AT AN AVERAGE PRICE OF 6936 APIECE BETWEEN SEPT 21 AND OCT 21 SEC DATA INDICATE THE BULK OF THE SALES WERE MADE BY JOSEPH WILLIAMS A DIRECTOR WHO SOLD 24600 SHARES FOLLOWING THOSE SALES THE STOCK DRIFTED LOWER TOWARD THE MID60S BUT HAS SINCE EDGED BACK IT CLOSED YESTERDAY AT 6950 A SHARE DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A WARNERLAMBERT SPOKESMAN SAID THE SELLING REFLECTED PRUDENT FINANCIAL PLANNING FOR TAX AND PORTFOLIODIVERSIFICATION PURPOSES HE NOTED THAT THE OFFICIALS HAD A NARROW WINDOW IN WHICH TO BUY OR SELL COMPANY STOCK THIS YEAR SINCE THE FEBRUARY THROUGH AUGUST PERIOD WAS EXCLUDED BECAUSE OF REGULATORY AND STRATEGICPLANNING ISSUES STILL THE INSIDER SELLING COMES AT A SENSITIVE TIME FOR WARNERLAMBERT INVESTORS WHO HAVE PLACED HIGH HOPES ON THE COMPANY'S NEW DRUG COGNEX USED IN THE TREATMENT OF ALZHEIMER'S DISEASE THE STOCK PRICE IN THE NEAR TERM WILL BE TOTALLY DEPENDENT ON THE SUCCESS OF COGNEX SAID D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST THE DRUG HAS GOTTEN OFF TO A SLOW START CAUSING AT LEAST ONE ANALYST TO DOWNGRADE HER RATING OF WARNERLAMBERT STOCK AND A NUMBER OF OTHERS TO CUT THEIR EARNINGS ESTIMATES THE COMPANY RECENTLY REPORTED A 5 DECREASE IN THIRDQUARTER EARNINGS TO 116 A SHARE FROM 122 A YEAR EARLIER ON A 3 INCREASE IN SALES THE EARNINGS DROP PARTLY REFLECTED SALES LOST FROM THE COMPANY'S EFFORTS TO COME INTO COMPLIANCE WITH FEDERAL REGULATIONS CONCERNING ITS PHARMACEUTICALSMANUFACTURING OPERATIONS IN PUERTO RICO AND ELSEWHERE I DOWNGRADED THE STOCK FROM A BUY' TO HOLD' OUT OF CONCERN THAT COGNEX MIGHT NOT BE TAKING OFF AS QUICKLY OR ROBUSTLY AS SOME INVESTORS AND ANALYSTS THOUGHT IT WOULD SAYS JAMI RUBIN AN ANALYST WITH NOMURA RESEARCH INSTITUTE IN NEW YORK BASED ON HER ASSESSMENT OF EARLY SHIPMENTS OF COGNEX DEMAND NUMBERS JUST DIDN'T SHOW ANY MOMENTUM SHE SAYS MOST OF THE NEUROLOGISTS I SPOKE WITH WERE GENERALLY UNIMPRESSED ALTHOUGH IT STILL MIGHT BE A LITTLE EARLY TO DRAW ANY FIRM CONCLUSIONS ABOUT THE DRUG'S PROSPECTS SOME ANALYSTS THINK THE DRUG WILL BE A BLOCKBUSTER WITH SALES EXCEEDING 500 MILLION IN A FEW YEARS AS THE ONLY TREATMENT AVAILABLE FOR TREATING ALZHEIMER'S PATIENTS AND FAMILIES WILL RUSH TO PHYSICIANS FOR PRESCRIPTIONS SOME SAY OTHER ANALYSTS BELIEVE WARNERLAMBERT INVESTORS ARE IN FOR A DISAPPOINTMENT ALTHOUGH COGNEX PRESCRIPTION DATA IS SKETCHY NOW BECAUSE THE DRUG WAS APPROVED ONLY IN SEPTEMBER INITIAL SIGNS PORTEND ROUGH GOING SOME BIG HEALTH MAINTENANCE ORGANIZATIONS HAVE BALKED AT RECOMMENDING THE DRUG FOR THEIR PATIENTS CITING SAFETY AND EFFICACY CONCERNS KAISER PERMANENTE MEDICAL CARE PROGRAM IN NORTHERN CALIFORNIA REJECTED THE DRUG AND GROUP HEALTH COOPERATIVE OF PUGET SOUND IN WASHINGTON STATE HAS TABLED ITS REVIEW UNTIL NEXT YEAR DIVERSIFIED PHARMACEUTICAL SERVICES INC WHICH MANAGES PRESCRIPTIONDRUG PLANS FOR MANAGEDCARE ORGANIZATIONS SAYS ABOUT HALF OF ITS 90 HMOS HAVE DECIDED THEY WON'T PROVIDE COVERAGE FOR COGNEX AND THE OTHER HALF IS REQUIRING THAT PHYSICIANS GET SPECIAL AUTHORIZATION ACCORDING TO DIVERSIFIED'S PRESIDENT HENRY BLISSENBACH THE DRUG WORKS ONLY FOR SOME PEOPLE AND THEN IS ONLY MODERATELY EFFECTIVE MOREOVER THE DRUG CAN HAVE SERIOUS SIDE EFFECTS ACCORDING TO HEALTH PROFESSIONALS EVEN THOUGH IT ISN'T APPROVED PHYSICIANS AT GROUP HEALTH CAN REQUEST COGNEX FOR PATIENTS A SPOKESMAN SAID BUT THEY AREN'T ASKING FOR IT BUT THERE IS NO QUESTION THAT A STRONG COGNEX PERFORMANCE IS CRUCIAL FOR WARNERLAMBERT SAYS NOMURA'S MS RUBIN EXPECTS LOWER LOPID REVENUE COGNEX IS CRITICAL TO THE COMPANY'S STOCK PRICE AND ITS LONGERTERM PROFITABILITY SHE SAYS BECAUSE THE COMPANY'S LARGEST SELLING PHARMACEUTICAL PRODUCT AN ANTICHOLESTEROL TREATMENT CALLED LOPID IS EXPECTED TO GENERATE STEADILY LOWER REVENUE AS A RESULT OF GROWING PRICE COMPETITION FROM GENERIC LABELS MS RUBIN EXPECTS US SALES OF LOPID WHICH RECENTLY LOST PATENT PROTECTION TO DROP TO 380 MILLION THIS YEAR AND TO 225 MILLION NEXT YEAR FROM 431 MILLION IN 1992 IF COGNEX FAILS TO MEET EXPECTATIONS MANAGEMENT WILL BE UNDER INCREASING PRESSURE TO DO SOMETHING TO ENHANCE SHAREHOLD VALUE SHE ADDS THE NOMURA ANALYST FORECASTS WARNERLAMBERT WILL EARN 480 A SHARE THIS YEAR SLIGHTLY BELOW MEAN ESTIMATES OF 485 A SHARE BUT UP FROM 478 IN 1992 WHILE COGNEX IS THE COMPANY'S BIGGEST WORRY THERE ARE OTHER PROBLEMS FACING WARNERLAMBERT THE COMPANY RAN AFOUL OF THE FOOD AND DRUG ADMINISTRATION LAST YEAR AND WAS FORCED TO RECALL AND SUSPEND PRODUCTION OF A DOZEN PRODUCTS WARNERLAMBERT HAS SAID IT IS CORRECTING THE PROBLEMS BUT MARIOLA HAGGAR A SALOMON BROTHERS ANALYST SUSPECTS THE PROBLEMS WILL DRAG ON INTO 1994 EVEN WHEN PRODUCTION CAPABILITY IS FULLY RESTORED MANY OF THE PRODUCTS WILL HAVE A TOUGH TIME RECLAIMING THEIR ORIGINAL MARKET SHARES WHICH WOULD HAVE BEEN FILLED IN THEIR ABSENCE BY GENERIC OR OTHER DRUGS SHE SAYS BUT WARNERLAMBERT ISN'T JUST A PHARMACEUTICALS COMPANY AND SOME ANALYSTS SUCH AS ALEX BROWN'S BARBARA RYAN SAY THAT INVESTORS SHOULD BE FOCUSED MORE ON WARNERLAMBERT'S CONSUMER BRANDS WHICH COMPRISE AROUND 60 OF SALES MS RYAN SAYS THE BIG CONSUMER PRODUCT LINES INCLUDING SUCH HOUSEHOLD BRANDNAME FRANCHISES AS LISTERINE ROLAIDS HALLS COUGH DROPS AND TRIDENT GUM CONTINUE TO PERFORM WELL THOSE ARE THE CROWN JEWELS OF THE COMPANY SHE SAYS DESCRIBING THE STOCK AS A LONGTERM BUY GERSTNER DUMPS SOME RJR STOCK INTERNATIONAL BUSINESS MACHINES CORP'S NEW CHAIRMAN LOUIS V GERSTNER RECENTLY SOLD 300000 SHARES OF RJR NABISCO HOLDINGS CORP WHERE HE FORMALLY SERVED AS CHAIRMAN SEC FILINGS SHOW AN IBM SPOKESMAN CONFIRMED THAT THE SALE TOOK PLACE IN EARLY NOVEMBER AT 6 A SHARE UNDER AN AGREEMENT WITH IBM THAT GUARANTEES MR GERSTNER 8125 A SHARE FOR THESE 300000 SHARES OF RJR STOCK IBM WILL PAY APPROXIMATELY 600000 TO MAKE UP THE DIFFERENCE BETWEEN THE SELLING PRICE AND THE GUARANTEED PRICE THE AGREEMENT WAS PART OF MR GERSTNER'S COMPENSATION CONTRACT WITH IBM AN IBM SPOKESMAN SAID MR GERSTNER SOLD THE 300000 SHARES TO REPAY DEBT TO RJR AND FOR OTHER PERSONAL FINANCIAL PLANNING PURPOSES THE DEBT STEMMED FROM AN RJR LOAN TO MR GERSTNER FOR THE PURCHASE OF RJR STOCK THE SALE ACCORDING TO SEC DATA REFLECTS ABOUT 12 OF MR GERSTNER RJR HOLDINGS EXCLUDING OPTIONS BETWEEN MIDAPRIL AND AUGUST MR GERSTNER BOUGHT 20000 IBM SHARES AT AN AVERAGE PRICE OF 45 MR GERSTNER WHO REMAINS A RJR DIRECTOR BECAME IBM'S CHAIRMAN APRIL 1 RJR NABISCO CLOSED AT 650 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9311170024 931117 HEARD ON THE STREET WELLS FARGO'S LOANLOSS RESERVES MAY PROVE FAR TOO LARGE BOOSTING PROFIT AND STOCK IN '94 BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL CALL IT THE REVENGE OF CARL REICHARDT FOR YEARS MR REICHARDT THE CHAIRMAN OF WELLS FARGO & CO HAS EATEN HUMBLE PIE AS REGULATORS FORCED THE SAN FRANCISCO BANK TO PILE UP 212 BILLION IN LOANLOSS RESERVES MUCH OF IT AS A RESULT OF PROBLEMS IN THE BUSINESS THAT WAS MR REICHARDT'S SPECIALTY COMMERCIAL REALESTATE LENDING BUT MR REICHARDT MAY HAVE THE LAST LAUGH SAY ANALYSTS AND INVESTORS DESPITE CONTINUED BAD NEWS ABOUT CALIFORNIA'S ECONOMY MANY BELIEVE THAT WELLS FARGO IS NOW ENORMOUSLY OVERRESERVED TO THE TUNE OF 1 BILLION BY SOME ESTIMATES SOME ANALYSTS ARE NOW PREDICTING THE SAN FRANCISCO BANK IS ABOUT TO BEGIN PASSING THAT LOVELY NEST EGG ON TO SHAREHOLDERS IN THE FORM OF BETTERTHANEXPECTED EARNINGS BY MID1994 SAYS THOMAS BROWN AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP THERE'S NO BANK WHERE REGULATORS MISSED THE BOAT MORE THAN WELLS FARGO HE SAYS BUT AS A RESULT SHAREHOLDERS MAY BENEFIT WELLS HAS A LOT OF EXCESS EQUITY IN THE FORM OF LOANLOSS PROVISIONS THAT WILL EVENTUALLY BOOST THE STOCK PRICE HE SAYS SOME ANALYSTS SAY THEY BELIEVE THE STOCK WILL RISE AS HIGH AS 180 TO 200 IN THE NEXT TWO YEARS YESTERDAY WELLS FARGO CLOSED AT 112 5/8 UP 1 7/8 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMONG OTHER THINGS ANALYSTS CONJECTURE THE COMPANY MAY USE THE EXCESS RESERVES TO BEGIN BUYING BACK SHARES IN THE NEXT SIX MONTHS MR BROWN SAYS THE BUYBACK MAY START WITH SOME PREFERRED STOCK BUT HE PREDICTS THE COMPANY ALSO WILL BUY BACK AS MUCH 10 OF ITS COMMON STOCK IN THE NEXT THREE YEARS DESPITE THIS UPBEAT OUTLOOK WELLS'S STOCK PRICE HAS FALLEN ABOUT 14 SINCE MIDOCTOBER AS CONCERNS ABOUT SLOWING REVENUE GROWTH LED INVESTORS TO FLEE BANK STOCKS IN FAVOR OF CYCLICAL STOCKS BUT A NUMBER OF SMART INVESTORS SAY THE RECENT DROP HAS PRESENTED AN OPPORTUNITY TO PICK UP WELLS STOCK ON THE CHEAP WELLS NOW TRADES FOR ROUGHLY NINE TIMES ESTIMATES FOR NEXT YEAR'S EARNINGS WELLKNOWN INVESTOR WARREN BUFFETT FOR EXAMPLE RAISED HIS STAKE IN THE BANK TO 122 WITH PURCHASES OF MORE THAN 300000 SHARES FROM NOV 3 THROUGH NOV 8 A SPOKESMAN FOR MR BUFFETT DECLINED TO COMMENT ON THE PURCHASES KENT SIMONS COMANAGER OF NEUBERGER & BERMAN'S GUARDIAN FUND SAYS HE HAS ALSO BEEN SEIZING THE OPPORTUNITY TO BUY WELLS SHARES AT A LOW MULTIPLE WE LOVE IT WE OWN IT ANY WEAKNESS WE BUY IT SAYS MR SIMONS HE IS ONE OF THE BANK'S LARGEST SHAREHOLDERS WITH 6 OF THE BANK'S 56 MILLION SHARES OUTSTANDING THERE ALSO ARE SOME RELATIVE NEWCOMERS TO THE STOCK WHO HAVE BEEN INVESTING LATELY AS WELL JAMES ENGLE CHIEF INVESTMENT OFFICER OF WOOD STRUTHERS & WINTHROP SAYS ABOUT ONEQUARTER OF HIS HOLDINGS IN THE BANK WERE ACQUIRED SINCE THE MIDOCTOBER SELLOFF BEGAN ANY BANK INVESTOR KNOWS THAT WELLS ISN'T ALONE IN OVERRESERVING FOR BAD LOANS INDEED THE EARNINGS OF MANY LARGE BANKS HAVE BEEN LIFTED IN RECENT QUARTERS AS LOANLOSS PROVISIONS WERE FINALLY REDUCED BUT WELLS MAY BE THE MOST EXTREME EXAMPLE OF A BANK WITH EXCESS RESERVES MR BROWN OF DLJ ESTIMATES THAT THE EXCESS RESERVES WILL BOOST EARNINGS IN THE NEXT COUPLE OF YEARS BY 684 MILLION OR 12 A SHARE IF THAT'S RIGHT EARNINGS FOR 1994 COULD BE GREATER THAN MOST ANALYSTS' PROJECTIONS WHICH RANGE FROM 10 TO 14 A SHARE MANY BANK INVESTORS HEADED FOR THE EXITS IN MIDOCTOBER OUT OF CONCERN THAT THE UNUSUALLY WIDE GAP BETWEEN THE RATE AT WHICH BANKS BORROW FROM THE GOVERNMENT AND THE RATE AT WHICH THEY LEND CALLED THE NETINTEREST MARGIN MAY BE NARROWING THIS RELATIVELY EASY SOURCE OF REVENUE HAS PROPELLED BANK STOCKS HIGHER PARTICULARLY LAST YEAR NOW HOWEVER WITH PREDICTIONS THAT INTEREST RATES WILL BEGIN RISING OR AT LEAST STAY STABLE THOSE MARGINS MAY BEGIN TO SHRINK SAYS MR BROWN THAT REALLY SPOOKED INVESTORS HE SAYS BUT THERE ARE PLENTY OF REASONS TO OWN WELLS'S STOCK ANYWAY HE ADDS WELLS WAS REENGINEERING ITS WORK FORCE BEFORE WE CALLED IT THAT IN THE 1980S HE SAYS SINCE JULY HE SAYS THE BANK HAS BEEN IN THE MIDST OF ANOTHER ROUND OF REENGINEERING HE ADDS THIS TIME HE SAYS THE BANK IS RETOOLING ITS BRANCHES PERHAPS TO INCLUDE SERVICES FOR NONWELLS CUSTOMERS SUCH AS CHECK CASHING FOR A FEE AND THE SALE OF TRAVELERS CHECKS THE BANK ALSO IS IN DISCUSSIONS WITH A CALIFORNIA UTILITY TO ALLOW CUSTOMERS TO PAY THEIR UTILITY BILLS AT WELLS BRANCHES RATHER THAN AT OFFICES OF THE UTILITY 9311170022 931117 BUSINESS BRIEF WANG LABORATORIES REPORTS NET INCOME FOR ITS 1ST QUARTER LOWELL MASS WANG LABORATORIES INC CITING REDUCED COSTS AND A ONETIME GAIN RESULTING FROM ITS EMERGENCE FROM BANKRUPTCY PROTECTION REPORTED NET INCOME OF 3063 MILLION FOR ITS FIRST QUARTER ALTHOUGH REVENUE DECLINED 42 TO 2109 MILLION FROM 360 MILLION THE OPERATING PROFIT OF 124 MILLION FOR THE PERIOD ENDED SEPT 30 WAS SEEN AS A POSITIVE SIGN BY ANALYSTS IN THE YEARAGO PERIOD WANG HAD A 232 MILLION OPERATING LOSS AND A NET LOSS OF 666 MILLION THE GAIN OF 3293 MILLION STEMMED FROM CONVERSION OF DEBT INTO EQUITY AND WAS RECORDED UNDER SOCALLED FRESH START BANKRUPTCYACCOUNTING METHODS PART OF THE GAIN HOWEVER WAS OFFSET BY REORGANIZATIONRELATED CHARGES OF 349 MILLION WANG DIDN'T RELEASE PERSHARE EARNINGS FIGURES BECAUSE OF A SIGNIFICANT DIFFERENCE IN THE NUMBER OF SHARES BETWEEN OLD STOCK IN THE COMPANY WHICH WAS DELISTED AND THE NEW ISSUE FOR THE FORMER COMPUTER GIANT WHICH EMERGED FROM BANKRUPTCY PROTECTION IN SEPTEMBER EMPHASIZING OFFICE SOFTWARE AND SERVICES THE PROFIT WAS ITS FIRST SINCE THE LAST QUARTER OF 1992 IT IS ALSO INDICATION THAT THE NOW VIRTUALLY DEBTFREE COMPANY HAS MANAGED TO TRIM OPERATIONS IN LINE WITH DECLINING REVENUE I VIEW THIS AS A VERY POSITIVE SIGN FOR THE NEAR TERM SAID THOMAS WILLMOTT SENIOR VICE PRESIDENT FOR ABERDEEN GROUP IN BOSTON WHICH FOLLOWS WANG IT MEANS THEY'VE GOT REVENUES COMING IN THAT MATCH THEIR EXPENSES MR WILLMOTT SAID THAT CASH FROM THE EXTRAORDINARY GAIN WILL ALSO GIVE THE COMPANY A LITTLE BIT OF CUSHION OVER THE NEXT FEW QUARTERS AS SALES FROM SOME OF THE COMPANY'S NEW PRODUCTS ARE PROBABLY NOT GOING TO REACH NEEDED VOLUMES IMMEDIATELY WANG'S ANNUAL REVENUE IS EXPECTED TO FALL BELOW 1 BILLION AT LEAST INITIALLY ANALYSTS SAID 9311170021 931117 COMPUTER SCIENCES TO PROVIDE SERVICES TO BRITISH AEROSPACE EL SEGUNDO CALIF COMPUTER SCIENCES CORP SAID IT PRELIMINARILY AGREED WITH BRITISH AEROSPACE PLC TO BUY BRITISH AEROSPACE'S INTERNAL INFORMATIONTECHNOLOGY SYSTEMS FOR ABOUT 112 MILLION AND TO PROVIDE SERVICES BACK TO THE BRITISH COMPANY FOR 10 YEARS FOR ABOUT 134 MILLION ANNUALLY COMPUTER SCIENCES SAID THE SOCALLED OUTSOURCING ARRANGEMENT WAS AGREED TO ORALLY AND THAT SIGNATURE BY BOTH SIDES OF A DETAILED AGREEMENT IS EXPECTED EARLY NEXT YEAR ANNOUNCEMENT OF THE AGREEMENT SENT COMPUTER SCIENCES' STOCK UP 225 A SHARE TO CLOSE AT 99625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN LONDON BRITISH AEROSPACE SHARES CLOSED AT 432 PENCE 643 UP 5 PENCE COMPUTER SCIENCES SAID THE ACCORD CALLS FOR IT TO BUY BRITISH AEROSPACE'S EXISTING FACILITIES AND EQUIPMENT AND TO EMPLOY SOME 1250 BRITISH AEROSPACE INFORMATIONTECHNOLOGY WORKERS COMPUTER SCIENCES THEN WILL PROVIDE TO BRITISH AEROSPACE SERVICES THAT THE LONDON DEFENSE AND COMMERCIAL AEROSPACE MANUFACTURER PREVIOUSLY SUPPLIED INTERNALLY INCLUDING MANAGING DATA CENTERS COMMUNICATIONS NETWORKS AND DATA PROCESSING FOR MORE THAN A DOZEN BUSINESS UNITS THE ACCORD WOULD ADD TO A GROWING LINE OF BUSINESS AT COMPUTER SCIENCES A COMPANY SPOKESMAN SAID COMMERCIAL OUTSOURCING CONTRACTS ACCOUNTED FOR ABOUT 500 MILLION OF REVENUE IN THE FISCAL YEAR ENDED APRIL 2 OUT OF A TOTAL OF 248 BILLION FOR THE PERIOD OR ROUGHLY 20 GOVERNMENT OUTSOURCING WORK ACCOUNTED FOR ABOUT AN ADDITIONAL 400 MILLION OR 16 THE SPOKESMAN SAID COMPUTER SCIENCES WHICH IN THE PAST HAS RELIED HEAVILY ON MILITARY CONTRACTS FOR COMPUTER WORK REPORTED 788 MILLION IN NET INCOME OR 466 A SHARE FOR THE LATEST FISCAL YEAR 9311170020 931117 MARKETING BRIEF QVC NETWORK INC FISCAL THIRDPERIOD EARNINGS INCREASED 32 ON STRONG SALES QVC NETWORK INC SAID STRONG SALES BOOSTED ITS THIRDQUARTER NET INCOME 32 THE WEST CHESTER PA CABLE SHOPPING CHANNEL SAID PROFIT ROSE TO 215 MILLION FOR THE FISCAL THIRDQUARTER ENDED OCT 31 FROM 164 MILLION IN THE YEAREARLIER PERIOD SALES INCREASED 14 TO 3139 MILLION FROM 2743 MILLION A YEAR AGO PERSHARE EARNINGS ROSE TO 42 CENTS FROM 40 CENTS A YEAR AGO QVC NOW HAS 507 MILLION SHARES OUTSTANDING COMPARED WITH 427 MILLION SHARES LAST YEAR QVC SAID IT HAD A RECORD SALES WEEK LAST WEEK WITH 449 MILLION IN PROJECTED SHIPMENTS SHARES OF QVC LOCKED IN A BATTLED WITH VIACOM INC TO ACQUIRE PARAMOUNT COMMUNICATIONS INC FELL 875 CENTS TO 50875 A SHARE IN NASDAQ STOCK MARKET TRADING 9311170019 931117 TECHNOLOGY NYNEX WINS APPEAL OF VERDICT RELATED TO BELL BREAKUP BAN NEW YORK A FEDERAL APPEALS COURT OVERTURNED A LOWER COURT'S VERDICT WHICH FOUND NYNEX CORP GUILTY OF CRIMINAL CONTEMPT FOR VIOLATIONS OF THE BELL SYSTEM BREAKUP DECREE THE FEDERAL COURT'S RULING RELATES TO THE 1982 CONSENT DECREE WHICH BANS REGIONAL PHONE COMPANIES FROM PROVIDING INFORMATION SERVICES IN FEBRUARY JUDGE HAROLD GREENE IMPOSED A 1 MILLION FINE ON NYNEX FOR WILLFULLY VIOLATING THE DECREE'S BAN ON SUCH SERVICES THE FIRST INSTANCE WHEN A REGIONAL CARRIER WAS FOUND GUILTY OF A CRIMINAL CHARGE RELATING TO THE DECREE THE BAN WAS LIFTED IN 1991 NYNEX'S ALLEGED VIOLATIONS STEMMED FROM OPERATIONS OF A SOFTWARE UNIT TELCO RESEARCH CORP WHICH HAD PROVIDED COMPUTER ACCESS TO A CUSTOMER MCI COMMUNICATIONS CORP IN VIOLATION OF THE ORDER TELCO WAS SOLD IN NOVEMBER 1990 THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA OVERTURNED THE RULING SAYING THE NYNEX ARRANGEMENT COULD FALL UNDER AN EXCEPTION WHICH PERMITTED PROVIDING CUSTOMER PREMISES EQUIPMENT NYNEX SAID IT NOW WILL NO LONGER HAVE TO PAY THE 1 MILLION FINE WE HAVE ALWAYS BELIEVED THAT NYNEX WAS NOT GUILTY OF CRIMINAL CONTEMPT OF THE CONSENT DECREE THE COMPANY SAID IN A STATEMENT SEPARATELY NYNEX SAID IT WILL CHALLENGE A PROVISION IN FEDERAL CABLE RULES THAT PREVENTS IT FROM PROVIDING VIDEO SERVICES TO CUSTOMERS IN ITS TELEPHONE SERVICE AREA NYNEX'S FILING IN A DISTRICT COURT IN PORTLAND ME FOLLOWS A COURT DECISION EARLIER THIS YEAR WHICH FOUND THE CABLE PROVISION UNCONSTITUTIONAL IN A SIMILAR SUIT BY BELL ATLANTIC CORP HOWEVER THE JUDGE IN THAT CASE RULED THAT HIS DECISION APPLIED ONLY TO BELL ATLANTIC WHICH MEANT THAT OTHER PHONE COMPANIES WOULD HAVE TO SEEK INDIVIDUAL RULINGS 9311170018 931117 HOUSE PANEL TO STUDY THRIFT OWNED BY CLINTON ASSOCIATE WASHINGTON THE HOUSE BANKING COMMITTEE IS BEGINNING TO LOOK INTO THE FINANCIAL DEALINGS OF AN ARKANSAS THRIFT OWNED BY A BUSINESS ASSOCIATE OF PRESIDENT CLINTON COMMITTEE CHAIRMAN HENRY GONZALEZ WON'T DECIDE WHETHER TO HOLD HEARINGS ON MADISON GUARANTY SAVINGS & LOAN ASSOCIATION UNTIL THE PRELIMINARY INQUIRY IS COMPLETED A SPOKESMAN FOR THE TEXAS DEMOCRAT SAID REPUBLICAN MEMBERS OF THE PANEL HAD REQUESTED A FULLSCALE INVESTIGATION OF THE NOWDEFUNCT LITTLE ROCK THRIFT NOV 9 AFTER THE RESOLUTION TRUST CORP ASKED FEDERAL PROSECUTORS TO CONDUCT A CRIMINAL INVESTIGATION UNTIL IT FAILED IN 1989 AND WAS TAKEN OVER BY THE RTC MADISON GUARANTY HAD BEEN OWNED BY JAMES MCDOUGAL A LONGTIME FRIEND AND BUSINESS PARTNER OF MR CLINTON WHO ALSO RAISED FUNDS FOR HIS CAMPAIGNS A JUSTICE DEPARTMENT CRIMINALFRAUD TEAM IS LOOKING INTO SEVERAL MATTERS INCLUDING WHETHER MORE THAN 250000 IN BUSINESS LOANS MAY HAVE BEEN DIVERTED FOR IMPROPER PURPOSES INCLUDING RETIRING DEBTS FROM MR CLINTON'S 1984 GUBERNATORIAL CAMPAIGN 9311170017 931117 LAW DEFENSE AGENCY HEAD DENIES ALLEGATIONS OF SEXUAL MISCONDUCT WASHINGTON THE HEAD OF THE PENTAGON'S ADVANCED RESEARCH PROJECTS AGENCY DENIED ALLEGATIONS THAT HE SOUGHT SEXUAL FAVORS FROM AN INTERNATIONAL BUSINESS MACHINES CORP REPRESENTATIVE IN EXCHANGE FOR PREFERENTIAL TREATMENT OF THE COMPANY GARY DENMAN THE DIRECTOR OF ARPA WHICH OVERSEES THE DEFENSE DEPARTMENT'S RESEARCH IN NEW TECHNOLOGIES ALSO DENIED DENIGRATING THE PROFESSIONAL CONDUCT OR PERSONAL INTEGRITY OF VERONICA GUNTHER A FORMER IBM MARKETING REPRESENTATIVE IN ADDITION MR DENMAN'S BRIEF STATEMENT SAID HE HAD NO KNOWLEDGE OF ANY CONTRACTS GIVEN FOR PROGRAMS THAT HE DISCUSSED WITH MS GUNTHER IN A SUIT FILED IN SUPERIOR COURT IN LOS ANGELES LAST WEEK MS GUNTHER ALLEGED THAT HER SUPERVISORS AT IBM FORCED HER TO RESUME A SEXUAL RELATIONSHIP WITH MR DENMAN TO HELP SECURE A CONTRACT FOR THE COMPANY THE SUIT ALSO ALLEGED THAT WHEN MS GUNTHER WORKED FOR MR DENMAN AT THE AIR FORCE IN THE 1980S HE SEDUCED HER AND THEN ABUSED AND PUBLICLY HUMILIATED HER HOWEVER MR DENMAN ISN'T NAMED AS A DEFENDANT IN THE SUIT PEGGY GARRITY AN ATTORNEY FOR MS GUNTHER SAID DR DENMAN'S DENIALS DON'T SURPRISE ME BUT THEY DISTURB ME WE HAVE EVERY CONFIDENCE WE'LL SUCCESSFULLY PROVE THESE ALLEGATIONS IN ITS OWN STATEMENT THE PENTAGON SAID IT VIEWED THE ALLEGATIONS WITH GRAVE CONCERN AND SAID IT HAD ASKED THE DEFENSE DEPARTMENT'S INSPECTOR GENERAL TO INVESTIGATE WHILE THE INVESTIGATION IS UNDER WAY IT ADDED MR DENMAN HAS EXCUSED HIMSELF FROM CONTRACTUAL DEALINGS INVOLVING IBM AND ROCKWELL INTERNATIONAL CORP WHICH IS ALSO MENTIONED IN THE COMPLAINT 9311170016 931117 KODAK UNIT PARTNER AGREEMENT ROCHESTER NY EASTMAN KODAK CO'S STERLING WINTHROP UNIT AND ITS ALLIANCE PARTNER ELF SANOFI SA SAID THEY AGREED TO ACQUIRE DAKOTA PHARMA SA A UNIT OF SIEGFRIED AG TERMS WEREN'T DISCLOSED IN A STATEMENT STERLING SAID THE ACQUISITION WILL GIVE IT A BETTER POSITION IN THE HOSPITAL MARKET BECAUSE DAKOTA SELLS ONCOLOGY AND OTHER HOSPITALBASED PRODUCTS 9311170015 931117 BUSINESS BRIEF MEDICAL MARKETING GROUP INC AGREEMENT SIGNED FOR MEDCO TO ACQUIRE FULL OWNERSHIP MEDICAL MARKETING GROUP INC MONTVALE NJ SAID IT SIGNED A DEFINITIVE MERGER AGREEMENT VALUED AT ABOUT 156 MILLION WHEREBY MEDCO CONTAINMENT SERVICES INC WOULD BUY THE 458 OF MEDICAL MARKETING IT DOESN'T ALREADY OWN THE AGREEMENT CALLS FOR MEDCO TO PAY 2725 IN CASH FOR EACH SHARE OF MEDICAL MARKETING WHICH HAS 126 MILLION COMMON SHARES OUTSTANDING MERCK & CO HAS AGREED TO BUY MEDCO IN A TRANSACTION VALUED AT 6 BILLION UNDER THE AGREEMENT MEDICAL MARKETING WOULD MERGE WITH A NEWLY CREATED MEDCO SUBSIDIARY BECOMING A WHOLLY OWNED MEDCO UNIT AND AN INDIRECT MERCK UNIT MEDCO SAID IT AND MERCK AGREED TO SETTLE A MEDICAL MARKETING SHAREHOLDERS' LAWSUIT CHARGING MEDCO'S INITIAL 25ASHARE OFFER FOR MEDICAL MARKETING WAS INADEQUATE MEDICAL MARKETING REPORTED FISCAL FIRSTQUARTER NET INCOME OF 21 MILLION OR 16 CENTS A SHARE COMPARED WITH 15 MILLION OR 12 CENTS A SHARE A YEAR EARLIER SALES ROSE 26 TO 104 MILLION FOR THE PERIOD ENDED SEPT 30 9311170014 931117 CREDIT MARKETS CORPORATE AND MUNICIPAL ISSUERS FLOOD MARKET WITH OVER 5 BILLION IN BONDS TO AVOID ANY JOLT BY JACQUELINE DOHERTY AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CORPORATE AND MUNICIPAL ISSUERS FLOODED THE MARKET WITH MORE THAN 5 BILLION OF NEW BONDS YESTERDAY NOT WISHING TO TAKE ANY CHANCES OF A WILD RIDE IN THE BOND MARKET IN COMING DAYS THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH 1000 FACE VALUE TO 101 4/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE ROSE TO 616 FROM 615 ON MONDAY MOST OTHER TREASURY MATURITIES POSTED MODEST PRICE GAINS OF 1/4 POINT OR LESS WITH THE ECONOMY SHOWING GREATER STRENGTH IN RECENT WEEKS AND INFLATION FEARS BEGINNING TO KICK IN AGAIN YESTERDAY SEEMED A GOOD TIME TO SELL NEW BONDS ALSO AT THE BACK OF EVERY TREASURER'S MIND ARE WORRIES ABOUT THE CONGRESSIONAL VOTE SCHEDULED FOR THIS EVENING ON THE NORTH AMERICAN FREE TRADE AGREEMENT A NO VOTE COULD SPARK A SELLOFF IN THE U S BOND MARKETS AND IN SOME LATIN AMERICAN MARKETS ONE OF YESTERDAY'S LARGEST BOND OFFERINGS CAME FROM JC PENNEY WHICH SOLD A 1 BILLION THREEPART OFFERING GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP'S OFFERING OF 150 MILLION OF 10YEAR YANKEE BONDS APPEARED TO MEET WITH WEAK DEMAND DESPITE A GROWING INTEREST IN INVESTMENTS IN CHINA GUANGDONG INTERNATIONAL IS ONE OF 10 ECONOMICDEVELOPMENT AGENCIES DESIGNATED BY THE CHINESE GOVERNMENT TO RAISE DEBT IN FOREIGN MARKETS ITS OFFERING IS THE SECOND THIS YEAR FROM CHINA IN THE US BOND MARKETS IN JULY CHINA INTERNATIONAL TRUST & INVESTMENT CORP SOLD 250 MILLION OF NONCALLABLE 10YEAR NOTES IN A WELLRECEIVED OFFERING IT WAS THE FIRST TIME SINCE 1949 THAT A CHINESE ISSUER HAD COME TO THE DOMESTIC PUBLICBOND MARKETS YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE US AND ARE USUALLY DENOMINATED IN DOLLARS BUT YESTERDAY'S OFFERING DIDN'T APPEAR TO DO AS WELL LATE YESTERDAY AFTERNOON THE ISSUER'S PROBABLE YIELD SPREAD OVER TREASURYS WAS SAID TO BE 120 PERCENTAGE POINTS ABOVE 10YEAR TREASURY NOTES OR ABOUT 682 AN INCREASE FROM AN EARLIER MARGIN OF AS NARROW AS 110 PERCENTAGE POINTS A WIDENING SPREAD IS OFTEN CONSIDERED A SIGN OF WEAK DEMAND THE WIDER SPREAD ON YESTERDAY'S OFFERING CONTRASTS WITH THAT ON THE CHINA INTERNATIONAL OFFERING IN JULY THE SPREAD FOR THAT OFFERING WAS JUST ONE PERCENTAGE POINT EVEN THOUGH IT HAD LOWER CREDIT RATINGS FROM ONE AGENCY THE CHINA INTERNATIONAL OFFERING WAS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP COMPARED WITH DOUBLEA1 AND TRIPLEB RESPECTIVELY FOR YESTERDAY'S OFFERING FROM GUANGDONG BECAUSE THE GUANGDONG OFFERING IS BEING DONE IN THE PRIVATEPLACEMENT MARKET FOR LARGE INSTITUTIONAL INVESTORS OFFICIALS AT THE LEAD UNDERWRITER CS FIRST BOSTON SAID THEY WERE LEGALLY PROHIBITED FROM COMMENTING ON ITS FINAL PRICING FIRST BOSTON ALSO DECLINED TO PROVIDE THE NAMES OF ANY INVESTORS WHO MIGHT HAVE PURCHASED THE OFFERING OTHER ISSUES DURING THE DAY INCLUDED A TWOPART 400 MILLION BOND OFFERING FROM JAMES RIVER AND A 250 MILLION ISSUE OF 30YEAR BONDS FROM JOHNSON & JOHNSON JC PENNEY'S THREETRANCHE OFFERING REPORTEDLY WAS SOLD WHEN PRICED EVEN AFTER IT WAS INCREASED BY 250 MILLION DEMAND WAS REPORTEDLY HELPED BY THE FACT THAT THE COMPANY RELEASED STRONG EARNINGS ONE SYNDICATE OFFICIAL SAID CS FIRST BOSTON WAS THE LEAD UNDERWRITER THE COMPANY ISSUED 400 MILLION OF FIVEYEAR NOTES AT 99718 TO YIELD 544 AND 325 MILLION OF 10YEAR NOTES PRICED AT 993 TO YIELD 622 ALSO PRICED WERE 275 MILLION OF 30YEAR DEBENTURES AT 99812 TO YIELD 714 ALL PARTS ARE NONCALLABLE AND RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE AND SINGLEAPLUS BY STANDARD & POOR'S INVESTORS LIKED THE DEAL BECAUSE THE COMPANY ISN'T IN THE MARKET FREQUENTLY IT LAST ISSUED DEBT IN AUGUST 1992 WHEN IT PRICED 250 MILLION OF 30YEAR BONDS TO YIELD 8286 ACCORDING TO SECURITIES DATA THE LARGEST OFFERING IN THE MUNI BOND MARKET WAS NEW YORK CITY'S 6718 MILLION SALE OF GENERALOBLIGATION REFUNDING BONDS THE OFFERING WAS SOLD THROUGH A GROUP LED BY GOLDMAN SACHS BUT DEMAND APPEARED TO BE A LITTLE LACKLUSTER THAT'S BECAUSE YIELDS FOR BONDS MATURING IN 2007 TO 2015 WERE RAISED 003 TO 005 PERCENTAGE POINT TO ATTRACT BUYERS YIELDS FOR THE SECURITIES RANGED FROM 300 FOR NOTES MATURING IN 1994 TO 603 FOR BONDS MATURING IN 2015 WHILE SOME YIELDS FOR THE NEW YORK CITY BONDS WERE INCREASED TO DRAW BUYERS A NUMBER OF UNDERWRITING GROUPS WERE ABLE TO REPRICE THEIR OFFERINGS AND LOWER YIELDS DUE TO STRONG DEMAND OTHER ISSUERS THAT TAPPED THE MARKET WITH OFFERINGS OF MORE THAN 300 MILLION YESTERDAY INCLUDED GEORGIA THE LOS ANGELES COUNTY PUBLIC WORKS FINANCING AUTHORITY AND THE WASHINGTON DC METROPOLITAN AREA TRANSPORTATION AUTHORITY WHILE THE SESSION'S ISSUANCE WASN'T A RECORD IT SEEMED LIKE ONE AFTER THE RECENT SLOWDOWN IN PRICINGS THE SUPPLY TOTALING MORE THAN 3 BILLION IS ABOUT WHAT WAS PRICED ALL OF LAST WEEK MUNI SPECIALISTS PARTLY ATTRIBUTE THE SPURT TO THE MARKET'S STABILIZATION AFTER THE RECENT SLIDE AND ISSUERS' DESIRE TO GET OFFERINGS PRICED BEFORE THANKSGIVING WITH THE FOCUS ON THE NEWISSUE SECTOR AND MANY PARTICIPANTS CONCERNED ABOUT THE OUTCOME OF THE NAFTA VOTE THERE WASN'T MUCH ACTION IN THE SECONDARY MARKETS FOR MUNICIPAL OR CORPORATE BONDS IN OHIO SOME WORRIES WERE CONFIRMED ABOUT WIDESPREAD LOSSES DUE TO INVESTMENTS IN THE MARKET FOR RISKY MORTGAGE SECURITIES STATE AUDITOR THOMAS E FERGUSON ANNOUNCED THAT CONTINUING AUDITS OF 18 COUNTIES CITIES VILLAGES AND SCHOOL DISTRICTS VERIFIED ILLEGAL HIGHRISK INVESTMENTS WITH POTENTIAL LOSSES THAT COULD EXCEED 13 MILLION SINCE MANY AUDITS AREN'T SCHEDULED TO BEGIN UNTIL 1994 LOSSES COULD BE MUCH HIGHER ESPECIALLY SINCE OHIO'S BIGGEST CITIES HAVEN'T BEEN AUDITED ACCORDING TO MR FERGUSON STATE LAW PROHIBITED MANY OF THESE MUNICIPALITIES FROM INVESTING IN SECURITIES WITH MATURITIES LONGER THAN TWO YEARS OR IN SECURITIES THAT WEREN'T FEDERALLY GUARANTEED MR FERGUSON SAID HE SAID MOST OF THE INVESTMENTS WERE IN EXTREMELY VOLATILE MORTGAGE SECURITIES CALLED INTERESTONLY STRIPS OR IOS WHICH GIVE INVESTORS THE INTEREST PAYMENTS ON AN UNDERLYING POOL OF MORTGAGES WITH THIS YEAR'S BIG DROP IN INTEREST RATES MANY OF THESE MORTGAGES HAVE BEEN REFINANCED THUS DRASTICALLY REDUCING THE IOS' VALUE THE DROPPING RATES HAVE CAUSED HUGE LOSSES IN THE MARKET FOR THESE VOLATILE SECURITIES SOME OF WALL STREET LARGEST FIRM HAVE BEEN AFFECTED ACCORDING TO MR FERGUSON SOME COUNTIES LIKE PORTAGE COUNTY MAY HAVE LOSSES AS HIGHAS 5 MILLION SANDUSKY COUNTY MAY SEE LOSSES OF UP TO 25 MILLION MR FERGUSON SAID THE MUNICIPAL OFFICIALS WHO BOUGHT THE SECURITIES MAY BE HELD LIABLE FOR LOSSES AS MIGHT BE THE COMPANIES THROUGH WHICH THE INVESTMENT WERE MADE MR FERGUSON SAID HE THOUGHT THAT SOME OF THE OFFICIALS BOUGHT THE EXOTIC SECURITIES BECAUSE THEY WANTED HIGH RETURNS DESPITE FALLING INTEREST RATES BUT THEY DIDN'T REALLY PROPERLY INVESTIGATE THE INSTRUMENTS HE SAID A NUMBER OF AUDITS FOUND A HOUSTON FIRM GOVERNMENT SECURITIES AS THE SELLER OF SOME OF THE SECURITIES SAID MR FERGUSON SANDUSKY COUNTY AND ITS TREASURER VIRGIL SWARTZLANDER HAVE FILED A LAWSUIT IN US DISTRICT COURT IN TOLEDO AGAINST THE FIRM ONE OF ITS BROKERS AND DONALDSON LUFKIN & JENRETTE SECURITIES AN EQUITABLE UNIT THAT ACTED AS CLEARINGHOUSE FOR GOVERNMENT SECURITIES THE HOUSTON FIRM SOLD THE IOS TO SANDUSKY COUNTY THE COMPLAINT ALLEGES THAT JAMES WINTER THE BROKER DIDN'T SEND MR SWARTZLANDER LITERATURE HIGHLIGHTING THE RISK IN IOS BUT INSTEAD TOLD HIM THAT THE SECURITIES WERE BACKED OR ISSUED BY THE US GOVERNMENT A LAWSUIT FILED BY GOVERNMENT SECURITIES AGAINST THE SANDUSKY COUNTY BOARD IN US DISTRICT COURT IN HOUSTON ALLEGES THAT THE COUNTY DOUBLED ITS BETS IN 1993 TO TRY TO RECOUP IO LOSSES WHILE FAILING TO RECOGNIZE THE LOSSES ON ITS BOOKS THE ONLY SOURCE OF LIFE FOR TREASURY SECURITIES TRADING WAS BUYING THAT ORIGINATED IN THE MUNICIPAL SECURITIES MARKET NOTES AND BONDS WERE MIXED KEEPING THE TREASURYS MARKET QUIET WAS A RELUCTANCE TO TAKE ON NEW POSITIONS AHEAD OF TONIGHT'S HOUSE VOTE ON NAFTA MOST IN THE MARKET BELIEVE PRESIDENT CLINTON WILL GET THE PACT THROUGH A POSITIVE OUTCOME ON NAFTA IS ALREADY BUILT INTO THE BOND MARKET BUT A NEGATIVE OUTCOME WOULD BE DAMAGING OVER THE SHORT TERM SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ THE 6 1/4 30YEAR BOND ENDED DOWN 6/32 AT 101 3/32 FOR A YIELD OF 617 THE 5 3/4 10YEAR NOTE WAS UP 5/32 TO 100 29/32 FOR A YIELD OF 563 THE 4 3/4 FIVEYEAR NOTE TRADED AT 99 2/32 UP 3/32 TO YIELD 496 AND THE 3 7/8 TWOYEAR NOTE ENDED UNCHANGED AT 99 20/32 TO YIELD 407 THE BOND MARKET'S RECENT PERFORMANCE SUGGESTS IT HAS SETTLED INTO BROAD RANGES MANY TRADERS CONTEND THE YIELD ON THE LONG BOND FOR EXAMPLE IS NOT EXPECTED TO STRAY MUCH ABOVE 6 1/4 OR FAR BELOW 6 THE 10YEAR NOTE IS SEEN AS CONFINED TO 5 1/2 TO 5 3/4 TODAY WILL BRING MORE ECONOMIC NEWS WHEN THE COMMERCE DEPARTMENT REPORTS ON OCTOBER HOUSING STARTS ECONOMISTS EXPECT STARTS TO RISE 06 TO 14 MILLION UNITS IN SEPTEMBER STARTS CLIMBED 28 TRADERS ALSO WILL WATCH FOR AN OUTRIGHT PURCHASE OF TREASURY NOTES AND BONDS BY THE FEDERAL RESERVE THE MOVE WOULD HAVE NO MONETARY POLICY SIGNIFICANCE RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED NOV 18 AND MATURE NOV 17 1994 PRICES ENDED NEAR UNCHANGED AND TRADING WAS LIMITED IN THE MORTGAGE SECURITIES MARKET AMONG 6 1/2 MORTGAGE SECURITIES FOR DECEMBER DELIVERY GINNIE MAES WERE UP 1/32 AT 99 14/32 FREDDIE MAC GOLDS AND FANNIE MAES WERE UNCHANGED AT 99 21/32 AND 99 14/32 RESPECTIVELY AS WALL STREET SLIPS INTO YEAREND MODE MORTGAGE ANALYSTS HAVE BEGUN TRYING TO GAUGE WHAT CHANGES MIGHT OCCUR IN THE MARKET IN THE FIRST QUARTER ANALYSTS AT DONALDSON LUFKIN & JENRETTE SECURITIES FOR EXAMPLE ARE WARNING INVESTORS TO KEEP A CLOSE EYE ON THE WEEKLY INDEX RELEASED BY MORTGAGE BANKERS ASSOCIATION THAT TRACKS HOMELOAN FINANCING IN PARTICULAR THEY ARE CONCERNED WITH REFINANCING ACTIVITY THE FIRM HAD EXPECTED A STEEPER DECLINE IN THE INDEX THAN THE 26 POSTED SINCE SEPTEMBER'S PEAK IT EXPECTS THE DROP IN NEW APPLICATIONS TO BECOME MORE PRONOUNCED THIS IS A WAY AT GETTING AT A LESSERDISCUSSED DANGER IN THE MORTGAGESECURITIES WORLD EXTENSION RISK INVESTORS CAN END UP HOLDING A SECURITY LONGER THAN THEY THOUGHT BECAUSE THE RATE INCREASES THAT SLOW REFINANCINGS MEAN THAT SOME MORTGAGE ISSUES WILL EXTEND THEIR PROJECTED LIVES INVESTORS THUS MISS OUT BECAUSE IF THE PRINCIPLE WERE RETURNED IT COULD BE REINVESTED AT NEW RATES IN THE PRIMARY MARKET FOR MORTGAGES WHERE UNDERWRITERS ASSEMBLE REAL ESTATE INVESTMENT CONDUITS FROM MORTGAGE SECURITIES ONE NEW DEAL WAS ANNOUNCED SALOMON BROTHERS USED 500 MILLION OF FANNIE MAE 6 1/2S TO PUT TOGETHER FANNIE MAE 1993245 LYNN K ADLER CONTRIBUTED TO THIS ARTICLE 9311170013 931117 LEISURE & ARTS BOOKSHELF DIXIE'S BOY FAULKNER FAMILY STORIES BY DONALD LYONS OF THE THREE GREAT AMERICAN NOVELISTS WHO CAME TO ARTISTIC MATURITY IN THE 1920S HEMINGWAY FITZGERALD FAULKNER ONLY ONE COULD INSPIRE A BOOK WITH A TITLE LIKE JOEL WILLIAMSON'S WILLIAM FAULKNER AND SOUTHERN HISTORY OXFORD UNIVERSITY PRESS 509 PAGES 35 IT IS HARD TO IMAGINE A VOLUME CALLED HEMINGWAY AND MICHIGAN HISTORY OR FITZGERALD AND MINNESOTA HISTORY THOSE TWO WRITERS SKEDADDLED AS SOON AS THEY COULD FOR GOOD FOR PARIS AND NEW YORK FAULKNER'S CASE WAS DIFFERENT AFTER BRIEF FLIRTATIONS WITH OTHER PLACES HE SETTLED DOWN IN THE TOWN HE GREW UP IN OXFORD MISSISSIPPI HE GOT A JOB AS POSTMASTER AT THE LOCAL UNIVERSITY POST OFFICE BUT GOT FIRED SOON ENOUGH FOR FAILING TO TAKE SERIOUSLY THE SELLING OF STAMPS AND THE SORTING OF MAIL HE GOT AND STAYED IF UNHAPPILY MARRIED TO AN OXFORD DIVORCEE A WOMAN HE'D KNOWN ALL HIS LIFE HE DRANK AND HE IMAGINED THE GREATEST AMERICAN NOVELS OF THE CENTURY MAD WILD STORIES PLUCKED FROM THE RICH ALLUVIAL BLOODSOAKED SOIL OF THE NORTHERN MISSISSIPPI WHERE HE WAS BORN IN 1897 BY 1929 HE HAD COMPLETED HIS FOURTH NOVEL AND FIRST MASTERPIECE THE SOUND AND THE FURY MR WILLIAMSON A HISTORIAN AT CHAPEL HILL HAS IN TRUE SOUTHERN FASHION REALIZED THAT THIS FALKNER BOY WILLIAM FANCIED UP THE FAMILY NAME CAME FROM COLORFUL STOCK AND SETS OUT TO RECOUNT SOME OLD FAMILY STORIES FAULKNER'S GREATGRANDFATHER COLONEL WILLIAM FALKNER FOR INSTANCE WAS A SPECULATOR WHO KILLED TWO MEN IN A TOWN FEUD THE COLONEL HAD A DICEY CIVIL WAR AT FIRST HE RAN A RAGTAG OUTFIT CALLED THE MAGNOLIA RIFLES THAT SEEMED TO LOSE EVERY ENGAGEMENT IT WAS IN THEN NOT UNLIKE THE FICTIONAL RHETT BUTLER HE RAN COTTON INTO UNION TERRITORY RECONSTRUCTION WAS THE MAKING OF THE COLONEL WHO BUILT THE LOCAL RAILROAD WITH CONVICT LABOR AN ORNERY AND UNLOVED CHARACTER THE COLONEL WAS SHOT DEAD IN THE TOWN SQUARE ON A TUESDAY AFTERNOON BY HIS EXPARTNER IN THE RAILROAD THE KILLER WAS ACQUITTED BESIDES HIS WHITE OFFSPRING IT IS LIKELY THAT THE COLONEL ALSO FATHERED A FAMILY WITH AN ENSLAVED BLACK WOMAN KNOWN AS EMELINE FALKNER EMELINE'S DESCENDANTS NEVER RECOGNIZED BY THE WHITE FALKNERS BECAME DISTINGUISHED ACADEMICS GIVING THE COLONEL A RUN FOR HIS MONEY WAS THE NOVELIST'S MATERNAL GRANDFATHER CHARLES BUTLER ELECTED MARSHAL OF THE TOWN OF OXFORD IN 1876 ON A TUESDAY AFTERNOON IN MAY 1883 IN THE TOWN SQUARE BUTLER SHOT AND KILLED A PRISONER SAM THOMPSON EDITOR OF THE OXFORD EAGLE SAM WAS WITNESSES AGREED INTOXICATED AND RESISTING ARREST SAM WAS PERHAPS UNUSUALLY UPSET BECAUSE HE WAS DUE TO FACE TRIAL THE VERY NEXT MORNING ON CHARGES OF ABDUCTING AND UNLAWFULLY COHABITING WITH A LOCAL TEENAGED GIRL ACQUITTED IN THE THOMPSON SHOOTING BUTLER CONTINUED TO SERVE AS MARSHAL UNTIL EARLY IN 1887 WHEN HE SUDDENLY RAN OFF WITH THE TOWN TREASURY AND VERY LIKELY WITH A BEAUTIFUL OCTOROON HE LEFT BEHIND A WIFE AND TWO TEENAGED DAUGHTERS ONE WAS FAULKNER'S MOTHER AND WAS NEVER HEARD FROM AGAIN THE SOUTH WAS ONLY SOMEWHAT CALMER BY THE TIME THE NOVELIST WAS BORN IN 1897 TO A HUMDRUM IF ALCOHOLIC FATHER AND A PASSIVE MOTHER WHEN BILL WAS 10 A BLACK PRISONER ACCUSED OF ASSAULTING A WHITE WOMAN WAS DRAGGED BY THE ENTIRE POPULATION OF OXFORD AND HALF THE POPULATION OF THE COUNTY OF LAFAYETTE FROM HIS CELL AND LYNCHED FROM A TELEPHONE POLE LEADING THE MOB WAS A US SENATOR THE JAILHOUSE WAS 1000 YARDS AWAY FROM THE BOY'S BEDROOM SUCH SCENES ASIDE BILL HAD A CLASSIC CHILDHOOD FULL OF PONIES AND FISHING POLES HE ESSENTIALLY DROPPED OUT OF SCHOOL AFTER THE SEVENTH GRADE IN WORLD WAR I'S WANING DAYS HE WENT UP TO TORONTO TO TRAIN FOR THE RAF BUT THE WAR ENDED SOON THEREAFTER AND HE CAME BACK TO OXFORD SPORTING A UNIFORM HE WAS NOT ENTITLED TO WEAR AFTER A BRIEF HALFHEARTED STAB AT THE UNIVERSITY OF MISSISSIPPI HE WENT UP TO NEW YORK AND WORKED IN A BOOK STORE DON'T READ THAT TRASH HE TENDED TO ADVISE CUSTOMERS IN 1925 HE DID EUROPE FECKLESSLY IN RAPALLO HE WAS TOO SHY TO MEET POUND IN PARIS HE GAZED AT JOYCE IN A CAFE IT DIDN'T MATTER FOR HE ABSORBED MORE FROM ULYSSES THAN HE COULD HAVE FROM A HUNDRED MEETINGS BACK HOME IN 1928 HE STARTED THE SOUND AND THE FURY THE REST OF THE STORY UNHAPPY MARRIAGE HOLLYWOOD HACKWORK AFFAIRS BOURBON IS FAMILIAR AND HAS BEEN BETTER TOLD ELSEWHERE BUT THE FIRST PART OF THIS BOOK IS A MOTHERLODE OF SUGGESTIVE STORIES SUGGESTIVE AT LEAST FOR READERS ALREADY AT HOME IN FAULKNER'S FICTIONAL YOKNAPATAWPHA COUNTY AND ABLE TO MAKE THE CRITICAL CONNECTIONS BETWEEN HISTORY AND STORY THAT MR WILLIAMSON IS RATHER TOO NAIVE AND HEAVYHANDED TO EFFECT IT IS THERE THAT ALL THOSE HOURS MR WILLIAMSON SPENT IN THE RIPLEY MISS PUBLIC LIBRARY AND THE TIPPAH COUNTY COURTHOUSE AND THE LAFAYETTE COUNTY COURTHOUSE AND AMID THE TOWN MINUTES OF OXFORD PAY OFF AS A WRITER HE MAY BE MORE MARGARET MITCHELL THAN WILLIAM FAULKNER MORE MELODRAMATIST AND GOSSIP THAN TRAGEDIAN BUT IN THE SOUTH THAT MOTHERLAND OF GOOD YARNS THE LINE BETWEEN THE TWO IS PERHAPS THINNER THAN IN MOST PLACES 9311170012 931117 ABREAST OF THE MARKET INDUSTRIALS RISE 3325 TO NEW HIGH AIDED BY HOPES FOR NAFTA PASSAGE BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK RISING SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT PROPELLED STOCK PRICES TO NEW HIGHS IN HEAVY TRADING WITH THE DOW JONES INDUSTRIAL AVERAGE SHATTERING THE 3700 MARK AS REPORTS ON NAFTA'S CHANCES OF WINNING TODAY'S VOTE IN THE HOUSE TRICKLED OUT FROM THE CAPITOL THE MARKET TRACKED EVERY BLIP OF NEWS AND AS INDICATIONS APPEARED TO GIVE NAFTA FORCES A SLIGHT COMEFROMBEHIND LEAD STOCKS FOLLOWED WITH THE INDUSTRIAL AVERAGE ENDING THE DAY UP 3325 OR 09 TO 371077 NAFTA WAS THE STORY TODAY SAID PAINEWEBBER MARKET STRATEGIST MARY FARRELL NOW THAT IT APPEARS AS THOUGH NAFTA IS GOING THROUGH THE MARKET HAS RESPONDED THE STANDARD & POOR'S 500 STOCK INDEX GAINED 299 OR 064 TO 46674 AND THE NEW YORK STOCK EXCHANGE COMPOSITE ROSE 122 OR 048 TO 25780 BOTH REMAIN SHORT OF THEIR RECORD HIGHS THE NAFTA NEWS INSPIRED EMOTIONAL BUYING IN STOCKS BASED SOUTH OF THE BORDER TWO CLOSEDEND MUTUAL FUNDS MEXICO FUND AND MEXICO EQUITY & INCOME FUND CLOSED UP 75 AND 5 RESPECTIVELY ALSO TELEFONOS DE MEXICO OR TELMEX THE LARGEST MEXICAN STOCK BY CAPITALIZATION FINISHED 5 HIGHER MEXICO FUND SHARES WERE UP 2 TO 28 5/8 MEXICO EQUITY & INCOME FUND ADDED 1 TO FINISH AT 19 5/8 TELMEX GAINED 2 1/2 TO 56 7/8 PHILIP ROTH CHIEF TECHNICAL ANALYST AT DEAN WITTER REYNOLDS SAID THE MARKET HAS BEEN ABSORBING THE PROS AND CONS OF NAFTA FOR THE PAST TWO WEEKS NAFTA IS AN EPHEMERAL INFLUENCE ON THE MARKET MR ROTH SAID IT SHOULDN'T HAVE MATTERED TODAY TO BUY STOCK TODAY BECAUSE OF NAFTA IS SHEER IDIOCY THE WHOLE ISSUE WILL BE OVER AND DONE WITH TWO DAYS FROM NOW THE ANALYST DID ALLOW THAT PROBABLY 90 OF YESTERDAY'S MARKET ACTIVITY WAS ATTRIBUTABLE TO NAFTA I DON'T THINK THERE WILL BE LONGLASTING MARKET REPERCUSSIONS FROM NAFTA HE SAID AS SOON AS IT'S DONE PEOPLE WILL BE BACK TO WORRYING ABOUT QUARTERLY EARNINGS AND INTEREST RATES IT'S JUST AN EMOTIONAL THING MR ROTH ALSO MENTIONED THAT SEVERAL SUBPLOTS WERE OVERSHADOWED BY NAFTA YESTERDAY INCLUDING A REBOUND IN UTILITY STOCKS THE DOW JONES UTILITY AVERAGE CLOSED 395 OR 18 HIGHER AT 22640 QVC NETWORK SLIPPED 7/8 TO 50 7/8 ON THE NASDAQ NATIONAL MARKET AFTER A COURT HEARING IN WHICH THE COMPANY'S ATTORNEY ASKED A DELAWARE CHANCERY COURT JUDGE TO THROW OUT ANTITAKEOVER PROVISIONS THAT ARE BLOCKING QVC FROM ACQUIRING PARAMOUNT COMMUNICATIONS IN A BIDDING WAR WITH VIACOM BOTH QVC AND VIACOM HAVE RAISED THE ANTE IN THEIR BATTLE FOR PARAMOUNT HEARINGS BEGAN YESTERDAY IN THE COURT BUT THE CASE IS EXPECTED TO BE APPEALED EITHER WAY TO DELAWARE SUPREME COURT PARAMOUNT DROPPED 1 3/4 TO 78 3/8 VIACOM CLASS B SHARES SLUMPED 2 1/8 TO 43 3/8 IN AMERICAN STOCK EXCHANGE TRADING CATERPILLAR THE CONSTRUCTION MACHINERY MAKER SLUMPED 1 1/8 TO 88 3/4 IN HEAVY TRADING AFTER DONALDSON LUFKIN & JENRETTE DOWNGRADED THE STOCK TO MODERATELY ATTRACTIVE FROM BUY THE BROKERAGE FIRM CITED CONCERNS ABOUT INVENTORY BUILDUP AND HIGH EXPECTATIONS THAT COULD MAKE EARNINGS DISAPPOINTMENTS LIKELY GENERAL MOTORS CLASS E DROPPED 2 TO 29 IN HEAVY TRADING AFTER GM UNVEILED A PLAN TO GIVE A 537 BILLION BLOCK OF ITS CLASS E STOCK TO A FUND FOR HOURLY WORKERS IN A MOVE TO REDUCE THE BIGGEST US UNFUNDED PENSION LIABILITY DEERE SLUMPED 1 3/8 TO 71 7/8 ANALYSTS CITED WEAK FARM EQUIPMENT INDUSTRY SALES IN OCTOBER AS A REASON FOR THE DROP GILLETTE CLIMBED 2 TO 62 3/4 AFTER THE MAKER OF PERSONALCARE PRODUCTS SAID IT WILL INTRODUCE A NEW LINE OF DISPOSABLE RAZORS IN 1994 CALLED CUSTOMPLUS IN NORTH AMERICA AND BLUE II PLUS IN EUROPE SOME CASINO AND GAMBLINGRELATED STOCKS SLIPPED IN THE THIRD ROUND OF PROFITTAKING IN THE PAST FOUR WEEKS PROMUS DROPPED 7/8 TO 66 3/4 WHILE MIRAGE RESORT LOST 1/2 TO 22 CIRCUS CIRCUS EASED 5/8 TO 32 1/2 INTERNATIONAL GAME TECHNOLOGY DROPPED 3/4 TO 30 1/2 9311170011 931117 LEISURE & ARTS THEATER BENEATH THE BLUEGRASS BY EDWIN WILSON NEW YORK THE KENTUCKY CYCLE HAS ARRIVED ON BROADWAY AFTER A JOURNEY ALMOST AS ADVENTUROUS AS THE 200YEAR SAGA DEPICTED IN THE PLAY IN 1981 WHILE AT ACTORS THEATER OF LOUISVILLE PLAYWRIGHT ROBERT SCHENKKAN VISITED THE COALMINING COUNTRY OF EASTERN KENTUCKY WHERE THE POVERTY AND DESOLATION MADE A LASTING IMPRESSION ON HIM HE SET TO WRITE A PLAY ON WHAT HE HAD SEEN AND BEFORE LONG HAD A SIXHOUR DRAMA COVERING THE YEARS 1775 TO 1975 THE PLAY WAS GIVEN TWO HIGHLY PRAISED PRODUCTIONS ON THE WEST COAST IN 1991 AT THE INTIMAN THEATER IN SEATTLE AND IN 1992 AT THE MARK TAPER FORUM IN LOS ANGELES IN 1992 IT WAS ALSO AWARDED THE PULITZER PRIZE NOW FOLLOWING A RUN AT THE KENNEDY CENTER IN WASHINGTON IT HAS OPENED AT THE ROYALE THEATRE HERE ALONG THE WAY THE KENTUCKY CYCLE ENGENDERED TWO STRONGLY OPPOSED POINTS OF VIEW ITS CHAMPIONS HELD THAT IT WAS A DEEP MONUMENTAL WORK WHILE ITS DETRACTORS CALLED IT SHALLOW AND OVERBLOWN BUT IT TURNS OUT TO BE NEITHER OF THESE TWO EXTREMES IT IS A STRONG INVOLVING MELODRAMA THAT HAD PREVIEW AUDIENCES SITTING IN RAPT SILENCE THROUGH THREE HOURS IN THE AFTERNOON AND ANOTHER THREE HOURS IN THE EVENING CHEERING AT THE END OF EACH OF ITS NINE SEGMENTS MR SCHENKKAN'S PLAY IS A TALE OF GREED AND RAPACIOUSNESS SPANNING TWO CENTURIES MICHAEL ROWEN STACY KEACH IS AN IRISHMAN WHO FINDS HIMSELF IN 1775 IN INDIAN TERRITORY IN SOUTHEAST KENTUCKY AFTER CALMLY KILLING OFF ONE OF HIS BUDDIES TO SATISFY THE SHAWNEE HE THEN DESTROYS MOST OF THE INDIANS BY GIVING THEM BLANKETS THAT HAD BELONGED TO SMALLPOX VICTIMS HE TAKES AN INDIAN WIFE CUTS A TENDON IN HER LEG SO SHE CAN'T RUN AWAY HAS A SON WHOM HE KEEPS AND A DAUGHTER WHOM HE KILLS BECAUSE SHE IS FEMALE ALL OF THIS IS SO HE CAN HAVE 39 ACRES OF LAND THROUGH MOST OF THE PLAY LAND AND WHAT LIES UNDER THE LAND IS THE SYMBOL OF PEOPLE'S AVARICIOUSNESS ROWEN AND HIS HEIRS WILL DO ANYTHING TO HOLD IT AND THIS IN TURN LEADS TO AN UNENDING SERIES OF BLOOD FEUDS ROWEN'S SON PATRICK SCOTT MACDONALD IS GOADED BY HIS INDIAN MOTHER LILLIAN GARRETTGROAG TO KILL HIS FATHER PATRICK ALSO KILLS JOE TALBERT JOHN AYLWARD THE FATHER OF HIS FIANCEE KATHERINE HILER THIRTY YEARS LATER JEREMIAH TALBERT GREGORY ITZIN THE BROTHER OF THAT FIANCEE EXACTS REVENGE ON THE ROWENS BY RUTHLESSLY TAKING OVER THEIR LAND AND REDUCING THEM TO SERVITUDE FORTY YEARS AFTER THAT DURING THE CIVIL WAR THE ROWENS GET RETRIBUTION BY KILLING THE SON OF JEREMIAH AND SO IT GOES THE KENTUCKY CYCLE IS LOADED WITH CLICHES IN LANGUAGE IN CHARACTERS IN DRAMATIC ACTION BUT CLICHES HAVE ALWAYS BEEN THE STUFF OF MELODRAMA THE POINT IS THAT MR SCHENKKAN USES THEM WELL HE KNOWS HOW TO CREATE DELICIOUSLY VILLAINOUS CHARACTERS HE ARTFULLY BUILDS SUSPENSE AND JUST AT THE RIGHT MOMENT HE THROWS IN SATISFYING SURPRISES DIRECTOR WARREN SHOOK AND HIS CAST HAVE DONE AN ADMIRABLE JOB OF MAKING ALL THIS WORK MR KEACH WHO PLAYS SEVERAL GENERATIONS OF ROWENS BRINGS AUTHORITY AND LIVELINESS TO HIS ROLES AND FOR THE MOST PART HE IS ABLY SUPPORTED BY HIS FELLOW ACTORS ON A BARE STAGE SET DESIGNER MICHAEL OLICH AND LIGHTING DESIGNER PETER MARADUDIN HAVE CREATED AN ENVIRONMENT THAT ALLOWS THE SCENES TO FLOW AND EXPAND HOWEVER WHEN THE PLAYWRIGHT LEAVES BEHIND MELODRAMA AND ATTEMPTS TO BECOME PHILOSOPHICAL HE RUNS INTO SERIOUS TROUBLE THE CYCLE IS SUPPOSED TO DEMONSTRATE HOW RUTHLESS AND CRAVEN PEOPLE ARE PARTICULARLY WHEN THERE ARE SPOILS INVOLVED WHAT KIND OF ANIMAL ARE YOU MICHAEL ROWEN IS ASKED A NECESSARY ANIMAL HE REPLIES AND SOON SOMEONE ELSE INTONES THIS IS A DARK AND BLOODY LAND THE PORTENTOUSNESS OF THE ENTERPRISE IS UNDERSCORED BY QUOTATIONS IN THE PROGRAM FROM AESCHYLUS TS ELIOT AND STEPHEN CRANE AND BY MR SHOOK'S USE OF BRECHTIAN PRONOUNCEMENTS TO INTRODUCE EACH SCENE THE STRIVING FOR SIGNIFICANCE IS MOST TROUBLESOME TOWARD THE END THIS IS ALL THE MORE DISAPPOINTING BECAUSE THE SCENES IMMEDIATELY BEFORE ARE FILLED WITH FIERY CONFRONTATIONS AND AN ABUNDANCE OF RAW EMOTION IN ONE THE MINERAL RIGHTS TO THE ROWEN LAND ARE FOOLISHLY SOLD TO GREEDY COALMINE OPERATORS AND IN ANOTHER DOWNTRODDEN MINERS FIGHT TO JOIN THE UNITED MINE WORKERS UNION THE TWO CONCLUDING SEGMENTS HOWEVER WHICH TAKE PLACE AFTER WORLD WAR II ARE ALMOST ENTIRELY CONSUMED WITH SQUABBLES AMONG UNION MEMBERS A FOCUS THAT NOT ONLY SHARPLY REDUCES THE LEVEL OF EXCITEMENT BUT ANY HOPE FOR A BROADER MESSAGE TWO OTHER PRODUCTIONS RECENTLY LANDED ON BROADWAY BOTH IN INTENT AND EXECUTION THEY ARE POLES APART TIMON OF ATHENS ONE OF SHAKESPEARE'S LEAST PRODUCED AND MOST DIFFICULT PLAYS DEALS WITH A WEALTHY MAN WHO IS GENEROUS TO A FAULT WHEN HIS FORTUNES ARE REVERSED AND HIS FRIENDS DESERT HIM HE BECOMES A RECLUSIVE MISANTHROPE THE GOOD NEWS ABOUT THE CURRENT VERSION AT THE LYCEUM THEATRE IS THAT DESPITE THE PLAY'S PROBLEMS DIRECTOR MICHAEL LANGHAM HAS MOUNTED A LUCID INVENTIVE PRODUCTION STARRING BRIAN BEDFORD IN THE TITLE ROLE AND FEATURING MUSIC BY DUKE ELLINGTON COMMISSIONED BY MR LANGHAM FOR AN EARLIER PRODUCTION AT THE STRATFORD ONTARIO THEATER FESTIVAL THE OTHER PRODUCTION IS A NEW SOUPEDUP RENDITION OF ANDREW LLOYD WEBBER'S JOSEPH AND THE AMAZING TECHNICOLOR DREAMCOAT AT THE MINSKOFF THEATRE THE MUSICAL WORK BEGAN 25 YEARS AGO AS A 15MINUTE VIGNETTE AT A BOYS' SCHOOL IN ENGLAND THROUGH THE YEARS EACH NEW PRODUCTION HAS GROWN INCREASINGLY MORE ELABORATE IN THIS MOST RECENT EDITION DIRECTED BY STEVEN PIMLOTT THE MODEST BIBLICAL STORY OF JOSEPH HAS BEEN COMPLETELY OVERWHELMED BY GLITZ GIMMICKS AND ENOUGH LAS VEGAS COSTUMES TO MOUNT A SHOW AT THE MGM GRAND 9311170010 931117 INSURANCE CLINTON HEALTHPLAN CASUALTY THE HEALTHINSURANCE AGENT BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TOLEDO OHIO AS A HEALTHINSURANCE AGENT LORI PROCTOR WAS NATURALLY CURIOUS ABOUT HOW THE CLINTON HEALTHCARE PLAN WOULD AFFECT HER JOB SO WHEN SHE VISITED THE WHITE HOUSE LAST MONTH AS PART OF A GROUP OF NORTHERN OHIO BUSINESSPEOPLE SHE PUT THE QUESTION ABOUT HER FUTURE DIRECTLY TO HILLARY RODHAM CLINTON THE ANSWER LEFT HER SHAKEN I'M ASSUMING ANYONE AS OBVIOUSLY BRILLIANT AS YOU COULD FIND SOMETHING ELSE TO MARKET THE FIRST LADY SAID HOPING TO TAME HEALTHCARE COSTS THE CLINTON HEALTH PLAN TRIES TO TRIM ADMINISTRATIVE FAT OUT OF THE HEALTHCARE SYSTEM BUT ONLY ONE JOB WOULD BE LEGISLATED OUT OF EXISTENCE HEALTHINSURANCE AGENTS THERE ARE ABOUT 150000 AMERICANS WHO MAKE MOST OF THEIR LIVING SELLING HEALTH COVERAGE UNDER THE CLINTON PROPOSAL CONSUMERS WOULD BUY HEALTH INSURANCE FROM PURCHASING COOPERATIVES KNOWN AS HEALTH ALLIANCES AGENTS WOULD BE BARRED FROM SELLING THE INSURANCE OFFERED BY THE ALLIANCES AT FIRST GLANCE THE SAVINGS APPEAR TO BE HUGE INSURANCE AGENTS EARN ABOUT 38 BILLION A YEAR IN COMMISSIONS ON HEALTH COVERAGE BUT THE SERVICES THEY PROVIDE SUCH AS EXPLAINING BENEFITS AND FIGHTING WITH INSURANCE COMPANIES OVER DENIED CLAIMS WOULD HAVE TO BE MADE UP BY SOMEONE PERHAPS GOVERNMENT EMPLOYEES THAT SCARES SOME PEOPLE I DON'T SEE CONSUMERS BEING VERY WELL SERVED BY THAT SAYS SAUL SPIVACK A CONSULTANT WITH TILLINGHAST AN ACTUARIAL CONSULTING FIRM IT WILL BE LIKE DEALING WITH THE DEPARTMENT OF MOTOR VEHICLES BUT CONSUMER ADVOCATES SAY ANYTHING IS BETTER THAN THE CURRENT SYSTEM IN WHICH THE SAME PEOPLE WHO GIVE ADVICE ON INSURANCE GET COMMISSIONS TIED TO HOW MUCH INSURANCE THEY SELL I DON'T THINK THE LOSS OF AGENTS IS SOMETHING CONSUMERS WILL MOURN SAYS GAIL SHEARER A HEALTHCARE EXPERT WITH CONSUMERS UNION THE PUBLISHER OF CONSUMER REPORTS MAGAZINE SUCH TALK RANKLES MS PROCTOR WHO SPECIALIZES IN SELLING GROUP HEALTH POLICIES TO SMALL EMPLOYERS INCLUDING PLUMBERS A SWIMMINGPOOL CONTRACTOR AND THE POLICE DEPARTMENT OF NEARBY PUTINBAY OHIO MS PROCTOR 35 YEARS OLD HAS ABOUT 100 CLIENTS AND EARNS ABOUT 45000 A YEAR MOST OF IT FROM COMMISSIONS ON POLICY RENEWALS UNLIKE LIFE INSURANCE WHICH PROVIDES AGENTS WITH HUGE COMMISSIONS IN THE FIRST YEAR OF A POLICY AND LOW COMMISSIONS IN LATER YEARS HEALTH INSURANCE PAYS COMMISSIONS THAT ARE FAIRLY CONSTANT FROM YEAR TO YEAR ON A RECENT MORNING MS PROCTOR MET WITH A CLIENT TO DISCUSS COVERAGE FOR HIS WORKERS AND AGREED TO SIT DOWN WITH AN EMPLOYEE OF ANOTHER CUSTOMER TO EXPLAIN BENEFITS SHE ALSO SCRUTINIZED DOCTOR BILLS OF A CUSTOMER WHO BELIEVED HE WAS IMPROPERLY DENIED BENEFITS LOOKING FOR MISTAKES IF I DON'T KEEP THESE PEOPLE IN MY ROLODEX HAPPY THEY'LL FIRE ME SHE SAYS TOLEDO ADVERTISING EXECUTIVE ROGER RAYMOR ONE OF MS PROCTOR'S CUSTOMERS USED TO THINK INSURANCE AGENTS WERE NOTHING MORE THAN SALESPEOPLE BUT THEN HE BROKE HIS ARM IN A MOTORCYCLE ACCIDENT IN WEST VIRGINIA HIS INSURANCE COMPANY REFUSED TO PAY HIS CLAIM AND THE HOSPITAL CHARGED HIM FOR SERVICES HE SAYS HE NEVER RECEIVED MS PROCTOR SPENT TWO YEARS GETTING THE DISPUTES UNTANGLED NO NORMAL HUMAN BEING CAN POSSIBLY UNDERSTAND AN INSURANCE POLICY MR RAYMOR SAYS I WOULD HATE TO LOSE THAT REPRESENTATION THE BETTER BUSINESS BUREAU IN TOLEDO USES MS PROCTOR AS A CONDUIT TO OFFER HEALTH INSURANCE TO ITS MEMBERS THE HEAD OF THE BUREAU RICHARD EPPSTEIN SAYS HIS MEMBERS DON'T MIND PAYING FOR AN INSURANCE AGENT I TALK TO MANY BUSINESS PEOPLE WHO SAY I DON'T CARE WHAT IT COSTS I JUST WANT GOOD SERVICE' HE SAYS RECENT EVENTS IN CALIFORNIA SEEM TO BEAR HIM OUT THE STATE HAS ALREADY SET UP A HEALTH ALLIANCE MUCH LIKE THOSE THE PRESIDENT ENVISIONS BUT AGENTS CAN STILL SELL POLICIES OFFERED BY THE PURCHASING GROUPS ALTHOUGH BUSINESSES COULD SAVE 5 FEES BY BUYING DIRECTLY FROM THE ALLIANCE 79 OF THE 1192 SMALL COMPANIES ENROLLED IN THE ALLIANCE HAVE CHOSEN TO BUY FROM AGENTS AND THEY HAVE DONE SO EVEN THOUGH THEY MUST FIRST SIGN A FORM ACKNOWLEDGING THAT THEY PAY MORE GOING THROUGH AN AGENT INSURANCE EXPERTS ACKNOWLEDGE THAT AGENTS PROVIDE SERVICES THAT SOMEONE WOULD HAVE TO PICK UP BUT THEY ALSO SAY THE CURRENT SYSTEM ADDS AN EXTRA COSTLY LAYER OF ADMINISTRATION YOU'RE NOT GOING TO ELIMINATE THE COST COMPLETELY BY ELIMINATING AGENTS SAYS GREG HERRLEY A CONSULTANT WITH MILLIMAN & ROBERTSON AN ACTUARIAL CONSULTING CONCERN IN MILWAUKEE BUT I CAN'T BELIEVE YOU CAN'T DO IT FOR LESS IN ADDITION THE SAVINGS FROM ELIMINATING AGENTS ARE ONLY PART OF THE EQUATION ARGUES PAUL ELLWOOD A MEMBER OF THE JACKSON HOLE GROUP A RESEARCH ORGANIZATION WHOSE IDEAS HELPED SHAPE THE CLINTON PLAN HE SAYS THE DEMISE OF AGENTS IS A BYPRODUCT OF CREATING ALLIANCES AND HE BELIEVES THAT SETTING UP THE ALLIANCES IS ESSENTIAL BY CREATING HUGE POOLS OF CONSUMERS WHO WOULD SHARE EACH OTHERS' RISKS THE ALLIANCES CAN PROVIDE AFFORDABLE INSURANCE TO EVERYONE HE SAYS IN THE COURSE OF OTHER THINGS THE ADMINISTRATION IS DOING YOU DON'T NEED AGENTS ULTIMATELY THE FATE OF HEALTHINSURANCE AGENTS COULD BE DECIDED LESS ON THE MERITS THAN BY POLITICS AGENTS REPRESENT A POWERFUL POLITICAL GROUP THE 300000MEMBER INDEPENDENT INSURANCE AGENTS OF AMERICA IS ONE OF WASHINGTON'S MOST POWERFUL LOBBYING GROUPS HAVING DONATED 590798 TO FEDERAL CAMPAIGNS OVER THE PAST TWO YEARS THE NATIONAL ASSOCIATION OF HEALTH UNDERWRITERS AND OTHER AGENT GROUPS ARE ALSO ACTIVE POLITICALLY THIS ISSUE IS IMPORTANT BECAUSE EVERY CONGRESSMAN HAS AGENTS IN THEIR DISTRICTS DR ELLWOOD SAYS 9311170009 931117 FOREIGN EXCHANGE NAFTA'S ROSIER PROSPECTS PROPEL DOLLAR AS INVESTORS BET PACT WILL LIFT ECONOMY BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK GROWING CONGRESSIONAL SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT SENT THE DOLLAR HIGHER AGAINST MOST MAJOR CURRENCIES YESTERDAY AS INVESTORS BET THAT THE TREATY WOULD GIVE A STRONG BOOST TO THE US ECONOMY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17047 MARKS UP FROM 16920 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS TRADING AT 10677 YEN UP A TOUCH FROM 10670 YEN STERLING WAS TRADING AT 14808 DOWN FROM 14895 MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10693 YEN AND AT 17066 MARKS TRADERS SAID THE MARKET WAS TRANSFIXED BY THE POLITICAL WRANGLING SURROUNDING PRESIDENT CLINTON'S EFFORTS TO SECURE PASSAGE OF NAFTA LEAVING THE DOLLAR'S FORTUNES CLOSELY TIED TO EACH UPDATE FROM THE CAPITAL THE HOUSE OF REPRESENTATIVES IS EXPECTED TO VOTE ON THE TREATY THIS EVENING AS TRADERS BEGAN TO SENSE A NARROW MARGIN OF VICTORY FORMING FOR THE TREATY YESTERDAY DOLLAR BUYING BEGAN IN EARNEST SENDING IT STRONGLY HIGHER AGAINST THE MARK EVERY TIME IT LOOKS LIKE CLINTON HAS GOT ONE MORE VOTE THE DOLLAR GOES UP A FEW TICKS SAID FRANK PUSATERI A VICE PRESIDENT FOR CORPORATE FOREIGN EXCHANGE AT BANK OF BOSTON THE CURRENCY GOT A BOOST IN THE AFTERNOON WHEN A SENIOR WHITE HOUSE OFFICIAL SAID THE ADMINISTRATION IS VERY CLOSE TO GETTING THE 218 VOTES IT NEEDS TO SECURE PASSAGE OF THE TREATY IN THE HOUSE THE OFFICIAL ADDED THAT THE NUMBER OF UNDECIDED LAWMAKERS WHO MUST STILL BE PERSUADED TO SUPPORT THE TREATY HAS SHRUNK TO A NUMBER IN THE SINGLE DIGITS TRADERS SAID THAT THOUGH IT SEEMS CERTAIN THAT THE VOTE WILL GO DOWN TO THE WIRE MOST PLAYERS HAVE COME TO BELIEVE THAT MR CLINTON WILL BE ABLE TO PULL OFF A VICTORY IN THE LAST MINUTE BY BRINGING ALL HIS POLITICAL CLOUT TO BEAR ON ANY LINGERING UNDECIDED VOTERS ALSO HELPING THE DOLLAR AGAINST THE MARK TRADERS NOTED WAS A SLIGHT EASING IN GERMAN MONEYMARKET INTEREST RATES BY THE BUNDESBANK THE GERMAN CENTRAL BANK SHAVED THE LOWEST RATE ACCEPTED AT ITS 15DAY SECURITIESREPURCHASE OPERATION OR ITS REPO RATE TO 629 FROM 638 LAST WEEK TRADERS SAID THAT WHILE THE MARKET GENERALLY EXPECTS THE BUNDESBANK TO WAIT UNTIL DECEMBER TO LOWER ITS OFFICIAL INTEREST RATES THE REPO RATE CUT HAD SPARKED SOME HOPE THAT AN EASING COULD EMERGE WHEN THE POLICYMAKING CENTRAL BANK COUNCIL MEETS TOMORROW THERE IS A POSSIBILITY OF A RATE CUT TOMORROW SAID NORI KATO A VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN IN NEW YORK WITH BOTH THE REPO RATE CUT AND THE NAFTA NEWS FUELING THE DOLLAR'S ENGINES DEALERS SAID THE DOLLAR WAS ABLE TO POWER THROUGH TOUGH SELLING PRESSURE AT 170 MARKS AND 17040 MARKS AND EVENTUALLY ROSE AS HIGH AS 17105 MARKS IN AFTERNOON TRADING IN NORTH AMERICA BEFORE FALLING BACK TRADERS WERE STRONGLY IMPRESSED WITH THE DOLLAR'S TECHNICAL STRENGTH NOTING THAT ITS ABILITY TO HOLD ABOVE 170 MARKS IN LATE NEW YORK TRADING BODED WELL EVERY TIME WE WENT OVER 170 MARKS PREVIOUSLY IT HAS REALLY BEEN CRUSHED DOWN PRETTY HARD SAID MR KATO MR PUSATERI AGREED THAT THE DOLLAR'S TECHNICAL PICTURE APPEARS TO BE PROMISING AND PREDICTED THAT NAFTA COULD PROVIDE AN OPPORTUNITY FOR THE DOLLAR TO BREAK DECISIVELY ABOVE 17080 MARKS A LEVEL SEEN AS A STRONG CAP FOR THE MOMENT MEANWHILE THE DOLLAR WAS LITTLE CHANGED AGAINST THE YEN TRADERS REPORTED THAT TRADING WAS LARGELY FOCUSED ON TECHNICAL LEVELS AS PLAYERS SHRUGGED OFF NEWS OF ANOTHER RISE IN JAPAN'S TRADE SURPLUS AND PREFERRED TO TEST THE STAYING POWER OF THE DOLLAR'S SHARP RISE MONDAY IT SEEMS AS THOUGH A LOT OF PEOPLE ARE STILL WILLING TO BUY THE DOLLAR ON DIPS MR KATO SAID 9311170008 931117 TUESDAY'S MARKETS INDUSTRIAL AVERAGE TOPS 3700 HOPES FOR APPROVAL OF NAFTA ARE CITED BOND PRICES MIXED BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE SAILED TO A NEW HIGH AS INVESTORS RESPONDED BULLISHLY TO SIGNS THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL PASS CONGRESS LONGTERM BOND PRICES FELL SLIGHTLY THE DOLLAR ENDED HIGHER THE INDUSTRIAL AVERAGE ROSE 3325 POINTS TO 371077 CLOSING ABOVE THE 3700 MARK FOR THE FIRST TIME EVER AND SMASHING THROUGH ITS OLD RECORD OF 369764 SET NOV 2 STANDARD & POOR'S 500STOCK INDEX ROSE 299 POINTS TO 46674 BUT THE NASDAQ COMPOSITE INDEX EASED 076 TO 77169 SOME SPECIALIZED STOCK MARKET INDEXES ALSO TURNED IN STRONG PERFORMANCES THE DOW JONES TRANSPORTATION AVERAGE HIT A RECORD SOARING 684 TO 175998 AND THE RECENTLY FLAGGING DOW JONES UTILITY AVERAGE ALSO CLIMBED GAINING 395 TO 22640 ANALYSTS SAID STOCK PRICES WERE BUOYED BY SIGNS THAT THE CLINTON ADMINISTRATION IS CLOSING IN ON THE VOTES IT NEEDS FOR NAFTA'S PASSAGE AT A NEWS BRIEFING YESTERDAY A SENIOR ADMINISTRATION OFFICIAL SAID THAT THE GAP BETWEEN THOSE DECLARING THEIR SUPPORT FOR NAFTA AND THE 218 VOTES THE WHITE HOUSE NEEDS IN THE HOUSE HAD SHRUNK TO A NUMBER IN THE SINGLE DIGITS I THINK WE'RE GETTING VERY CLOSE TO THE NECESSARY NUMBERS TO WIN THE OFFICIAL SAID IN ADDITION MORE ENCOURAGING NEWS ON THE ECONOMIC FRONT GAVE INVESTORS ANOTHER REASON TO SNAP UP STOCKS ACCORDING TO A REPORT FROM JOHNSON REDBOOK A PRIVATE RETAILCONSULTING FIRM SALES AT THE NATION'S RETAILERS ROSE A SEASONALLY ADJUSTED 14 DURING THE SECOND WEEK OF NOVEMBER FROM OCTOBER THOUGH STOCK PRICES HAD BEEN INCHING HIGHER FOR MOST OF THE AFTERNOON ON EXPECTATIONS THAT NAFTA WOULD PASS THE COMMENT FROM THE ADMINISTRATION OFFICIAL SET OFF A WAVE OF SHORTCOVERING INVESTORS WHO HAD SOLD BORROWED SHARES IN THE BELIEF THAT STOCK PRICES WOULD FALL WITH NAFTA'S DEFEAT WERE FORCED TO COVER THESE POSITIONS BY BUYING STOCK IN THE MARKET NAFTA'S PASSAGE IS CLEARLY IN THE MARKET DECLARED DAVID SHULMAN STOCK STRATEGIST AT SALOMON BROTHERS MR SHULMAN CITED STRONG GAINS IN THE STOCK OF TELEFONOS DE MEXICO AS THE MOST COMPELLING SIGN THAT INVESTORS ARE BETTING ON NAFTA'S SUCCESS TELMEX AS IT'S KNOWN WAS ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD RISING 2 1/2 TO 56 7/8 UNCERTAINTY ABOUT THE PROSPECTS OF NAFTA HAD BEEN ONE OF THE CLOUDS HANGING OVER THE STOCK MARKET DURING THE PAST WEEK BUT ANALYSTS SAID YESTERDAY THAT IF THE AGREEMENT IS ADOPTED IT WILL DIMINISH THE LIKELIHOOD OF A BIG CORRECTION IN STOCK PRICES IF NAFTA DOESN'T PASS IT REALLY CALLS INTO QUESTION THE WHOLE VALUATION OF THE STOCK MARKET SAID WAYNE NORDBERG A PARTNER AT LORD ABBETT BUT IF THE TREATY IS APPROVED IT TAKES AN ENORMOUS DOWNSIDE OUT OF THE MARKET IN MEXICO INVESTORS GREETED THE PROSPECT OF A USMEXICAN TRADE TREATY WITH THE SAME EBULLIENCE AS THEIR US COUNTERPARTS STOCKS ROCKETED TO A FIFTH STRAIGHT RECORD ON THE MEXICAN STOCK EXCHANGE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 034 TO 11135 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3037 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1075 ISSUES ROSE AND 1003 FELL BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST LESS THAN 1/8 POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 616 BUT SHORTERTERM ISSUES EDGED HIGHER THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17047 MARKS AND 10677 YEN COMPARED WITH 16920 MARKS AND 10670 YEN MONDAY 9311170007 931117 REVIEW & OUTLOOK EDITORIAL WHAT'S WRONG WITH EUROPE WHETHER YOU WANT NAFTA TO WIN OR LOSE TONIGHT'S VOTE ONE SHARED WAY TO LOOK AT THE ISSUE IS THAT AT LEAST WE'RE GETTING IT BEHIND US AFTER TONIGHT THE US WILL AT LEAST HAVE A POLICY AND CAN NOW MOVE ON TO OTHER ISSUES AGAINST THIS COMPARE THE CURRENT EXPERIENCE IN EUROPE WHICH SEEMS TO BE GOING THROUGH AN IDENTITY CRISIS OVER THE DIRECTION OF ITS POLITICAL ECONOMY ON MONDAY EUROPEAN COMMISSION SECRETARY GENERAL DAVID WILLIAMSON STOOD IN FOR AILING EC PRESIDENT JACQUES DELORS TO DELIVER AN ADDRESS TO THE CONFEDERATION OF BRITISH INDUSTRY CBI THE SUBJECT WAS WHAT'S WRONG WITH EUROPE AND HOW IT CAN BE FIXED IT MIGHT HAVE BEEN MORE PROFITABLE FOR ALL CONCERNED HAD THE EC'S REPRESENTATIVE INSTEAD SPENT HIS TIME LISTENING TO WHAT CBI INDUSTRIALISTS THINK IS WRONG WITH EUROPE BECAUSE THEY WERE MAKING A LOT MORE SENSE CBI PRESIDENT MICHAEL ANGUS SAID THAT EUROPEAN INDUSTRY WOULD FUNCTION A LOT MORE EFFICIENTLY IN ITS COMPETITIVE STRUGGLE WITH THE REST OF THE WORLD IF IT COULD SHED SOME OF ITS BURDENS OF REGULATION RIGID LABOR LAWS AND MANDATED SOCIAL WELFARE COSTS ON THE REGULATION FRONT HE PARTICULARLY CITED THE NEW SETS OF REGULATIONS BRUSSELS NOW IS SUPERIMPOSING ON NATIONAL RULES JUDGING FROM THE DELORS SPEECH DELIVERED BY MR WILLIAMSON THE COMMISSION HAS A RATHER DIFFERENT AND SINGULAR VIEW OF THE PROBLEM IT SAID THAT EUROPE'S LONGTERM STRATEGY CAN'T BE ONE OF COMPETING SOLELY ON COSTS BUT SHOULD BE GEARED ALSO TO INCREASING PRODUCTIVITY WHAT THAT MEANS IS NOT EXACTLY CLEAR MR ANGUS CERTAINLY WAS TALKING ABOUT PRODUCTIVITY TELLING HIS VISITOR FROM BRUSSELS HOW THE COMMISSION AND NATIONAL GOVERNMENTS CAN VERY QUICKLY HELP BUSINESS IMPROVE IT BURDENS OF GOVERNMENTIMPOSED PAPERWORK AND LEGAL COSTS CUT OVERALL TOTALFACTOR PRODUCTIVITY OF A CORPORATION JUST AS SURELY AS AN ABSENCE OF ADVANCED MACHINERY OR A PROPERLY TRAINED WORK FORCE THE CBI FOLKS WERE SAYING THE SHORTEST ROUTE TO IMPROVED PRODUCTIVITY IS TO GET GOVERNMENTS AND MULTILATERAL AGENCIES LIKE THE COMMISSION OFF OUR BACKS FOR ITS PART THE COMMISSION PROPOSES TO CURE THE ECONOMIC SLUMP WITH YET ANOTHER WHITE PAPER TO BE PRESENTED TO THE DECEMBER EC SUMMIT THIS WILL BE ANOTHER EXERCISE IN COMMISSION BOMBAST DESCRIBING HOW BUREAUCRATS IN BRUSSELS WILL GO ABOUT CREATING 15 MILLION NEW JOBS BY THE YEAR 2000 THE WHITE PAPER WILL NOT BE TOTALLY DEVOID OF GOOD IDEAS THEY SELDOM ARE AND EVEN MENTIONS GREATER LABOR MARKET FLEXIBILITY BUT MULTILATERAL BUREAUCRACIES DON'T CREATE JOBS EXCEPT FOR ADDITIONAL BUREAUCRATS AND THE CONSTRUCTION WORKERS WHO BUILD THE PALACES THAT HOUSE THEM THAT IS EITHER DONE IN THE REAL WORLD OR IT IS NOT DONE AT ALL EUROPE'S PROBLEM IS THAT IT MOSTLY HASN'T BEEN DONE AT ALL IN THE REAL WORLD ITALIANS ARE TRYING TO REFORM THEIR POLITICS AND BRING SWOLLEN AND CORRUPT GOVERNMENT ENTITIES UNDER SOME CONTROL SPAIN IS TRYING TO COPE WITH RISING UNEMPLOYMENT GERMANY'S CHANCELLOR WAS SOLICITING EXPORT CONTRACTS THIS WEEK IN OF ALL PLACES CHINA A RECENT SURVEY BY THE GERMAN INDUSTRY AND TRADE ASSOCIATION FOUND THAT 30 OF THE GERMAN FIRMS SURVEYED HAD PLANS TO MOVE OPERATIONS OUT OF GERMANY IN THE NEXT THREE YEARS BECAUSE OF HIGH COSTS PRIMARILY TAXES AND WAGES BELGIUM IS CAUGHT BETWEEN A HUGE DEBT REFINANCING BURDEN NEXT YEAR AND MILITANT UNIONS RESISTING THE NECESSARY CUTS IN GOVERNMENT SPENDING EUROPE'S TASK IN THE MONTHS AND YEARS AHEAD IS PRECISELY TO CUT COSTS AND MAKE ITS PRODUCTIVE SYSTEM MORE COMPETITIVE WHEN IT CAN COMPETE SUCCESSFULLY IT WILL CREATE MORE JOBS REAL ONES GOVERNMENT LEADERS HAVE MOSTLY FIGURED THIS OUT WHY THE WORD HASN'T REACHED THE EUROPEAN COMMISSION IS A BIT OF A MYSTERY 9311170005 931117 INTERNATIONAL HONG KONG JOBLESS RATE HONG KONG HONG KONG'S PROVISIONAL UNEMPLOYMENT RATE REMAINED STEADY AT 2 OF THE WORK FORCE IN THE AUGUSTTHROUGHOCTOBER PERIOD ACCORDING TO THE GOVERNMENT'S CENSUS AND STATISTICS DEPARTMENT 9311170004 931117 BUSINESS BRIEF CIRCUS CIRCUS ENTERPRISES INC OPERATING PROFIT ROSE 48 IN FIRST 2 WEEKS OF MONTH CIRCUS CIRCUS ENTERPRISES INC SAID OPERATING PROFIT FOR THE FIRST TWO WEEKS OF NOVEMBER ROSE 48 OVER YEAREARLIER LEVELS IN THE WAKE OF THE OPENING OF ITS 390 MILLION LUXOR CASINO WILLIAM G BENNETT CHAIRMAN AND CHIEF EXECUTIVE SAID THE LAS VEGAS COMPANY RECORDED OPERATING PROFIT BEFORE EXPENSES AND TAXES OF ABOUT 98 MILLION FOR THE FIRST 14 DAYS OF THE MONTH COMPARED WITH 66 MILLION A YEAR EARLIER WE REALIZE THAT THIS IS A SHORT PERIOD OF TIME AND THAT WE PROBABLY WILL NOT BE ABLE TO MAINTAIN SUCH A LARGE INCREASE MR BENNETT SAID CLYDE TURNER PRESIDENT SAID THE LUXOR CASINO IS DOING VERY WELL AND REPORTED OPERATING PROFIT OF 27 MILLION FOR THE 14DAY PERIOD THE EXECUTIVES SAID THEY WERE PUZZLED BY THE CONTINUED WEAK PERFORMANCE OF THE STOCK WHICH HAS FALLEN SHARPLY SINCE IT CLOSED AT 4850 ON OCT 15 THE DAY LUXOR OPENED YESTERDAY CIRCUS'S STOCK FELL 625 CENTS TO CLOSE AT 3250 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9311170003 931117 MARKETING & MEDIA HALLMARK TO BUY BRITISH FIRM KANSAS CITY MO HALLMARK CARDS INC SAID IT PLANS TO ACQUIRE THE BRITISH GREETING CARD COMPANY ANDREW BROWNSWORD GROUP HALLMARK A CLOSELY HELD GREETING CARD CONCERN DIDN'T DISCLOSE TERMS AS PART OF THE AGREEMENT HOWEVER ANDREW BROWNSWORD FOUNDER AND CHAIRMAN OF THE BATHBASED COMPANY THAT BEARS HIS NAME WILL OVERSEE HALLMARK OPERATIONS IN THE UNITED KINGDOM ANDREW BROWNSWORD GROUP LINES INCLUDE FOREVER FRIENDS COUNTRY COMPANIONS AND GORDON FRASER GALLERY HALLMARK HAD WORLDWIDE SALES IN 1992 OF 31 BILLION 9311170002 931117 INTERNATIONAL HOSOKAWA SETS THURSDAY VOTE ON REFORM BID BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO PRIME MINISTER MORIHIRO HOSOKAWA HAS SET A CRUCIAL PARLIAMENTARY SHOWDOWN ON JAPANESE POLITICAL REFORM FOR THURSDAY AND SEEMS INCREASINGLY CONFIDENT OF WINNING MR HOSOKAWA HAD A SURPRISINGLY EASY TIME PUSHING THE SET OF BILLS THROUGH A LEGISLATIVE COMMITTEE TUESDAY PAVING THE WAY FOR A VOTE IN THE FULL LOWER HOUSE THURSDAY DURING THE TUESDAY MANEUVERINGS MR HOSOKAWA'S SEVENPARTY COALITION OFTEN PORTRAYED AS FRAGILE STAYED LARGELY UNIFIED MEANWHILE THE OPPOSITION LIBERAL DEMOCRATIC PARTY SHOWED SERIOUS CRACKS AS SEVERAL MEMBERS SAID THEY WOULD BACK MR HOSOKAWA'S PROPOSALS AND NOT THEIR PARTY'S ALTERNATIVES MR HOSOKAWA COULD STILL RUN INTO TURBULENCE THIS WEEK OVER THE CONTROVERSIAL ISSUE FORCING HIM TO DELAY THE VOTE AT THE LAST MINUTE OR EVEN TO LOSE IT BUT MOST POLITICAL ANALYSTS AND JAPANESE MEDIA REPORTS ARE NOW PREDICTING VICTORY WHEN MR HOSOKAWA TOOK OFFICE IN AUGUST HE STAKED HIS JOB ON PASSING POLITICAL REFORM BY THE END OF THE YEAR THE BILLS WOULD REDRAW JAPAN'S ELECTORAL MAP SET A NEW METHOD FOR ELECTING PARLIAMENT MEMBERS CURB CORPORATE DONATIONS TO POLITICIANS AND PROVIDE GOVERNMENT SUBSIDIES FOR CAMPAIGNS THE GOAL TO CUT AN ENDLESS STRING OF POLITICAL SCANDALS AND TO SHAKE UP A SYSTEM WIDELY CRITICIZED FOR PARALYSIS IF MR HOSOKAWA WINS A VOTE THURSDAY HE APPEARS LIKELY TO MEET HIS TARGET THAT GIVES HIM A MONTH TO PASS THE BILLS THROUGH PARLIAMENT'S UPPER HOUSE WHERE HIS COALITION GOVERNMENT HAS A MORE SOLID MAJORITY BEFORE THE LEGISLATURE'S SCHEDULED MIDDECEMBER CONCLUSION A WIN THIS WEEK WOULD ALLOW MR HOSOKAWA TO TURN HIS ATTENTION TO A LONG LIST OF OTHER ISSUES THAT HAVE BEEN PUT ON HOLD SUCH AS ECONOMIC STIMULUS TAX REFORM AND TRADE TENSIONS A LOSS COULD FORCE HIS GOVERNMENT'S COLLAPSE THE REFORM BILLS WOULD ALSO SCRAMBLE JAPAN'S EXISTING POLITICAL PARTIES LIKELY TRIGGERING A LONGERTERM REALIGNMENT ANALYSTS SAID THE LDP WHICH RULED JAPAN FOR 38 YEARS UNTIL ITS SPLIT THIS YEAR WILL LIKELY FRACTURE FURTHER NEWS REPORTS TUESDAY SAID MORE THAN 10 OPPOSITION LDP MEMBERS COULD VOTE FOR MR HOSOKAWA'S BILLS AND MAY SUBSEQUENTLY QUIT THE PARTY 9311170001 931117 GORE DEBT PLAN FOR BONNEVILLE POWER IS CRITICIZED BY CBO FOR RAISING COSTS BY JOHN CONNER SPECIAL TO THE WALL STREET JOURNAL WASHINGTON A CLINTON ADMINISTRATION PROPOSAL TO ALLOW THE BONNEVILLE POWER ADMINISTRATION TO SELL BONDS TO REPAY SOME 7 BILLION IN LOWINTEREST DEBT WOULD PUT TAXPAYERS IN A LOSELOSE SITUATION THE CONGRESSIONAL BUDGET OFFICE SAID THE BPA DEBTRESTRUCTURING PROPOSAL PART OF THE REINVENTING GOVERNMENT INITIATIVE SPEARHEADED BY VICE PRESIDENT AL GORE ALSO WAS CRITICIZED AT A SENATE ENERGY AND NATURAL RESOURCES COMMITTEE HEARING BY THE PANEL'S CHAIRMAN SEN BENNETT JOHNSTON D LA I DON'T SEE ANY ADVANTAGE TO THE DEBT RESTRUCTURING PLAN SEN JOHNSTON SAID AND HE WARNED BACKERS OF THE BPA PROPOSAL THAT YOU CAN'T MAKE WATER FLOW UPHILL DEPUTY CBO DIRECTOR JAMES BLUM TOLD THE SENATE PANEL THAT SUBSTITUTING AGENCY DEBT FOR TREASURY DEBT WOULD RESULT IN A COST TO THE GOVERNMENT HE SAID INTEREST RATES ON BPA BONDS WOULD BE ABOUT 50 BASIS POINTS HIGHER THAN ON COMPARABLE TREASURY SECURITIES OR 50 ONEHUNDREDTHS OF A PERCENTAGE POINT HIGHER AND HE NOTED THAT BONNEVILLE POWER ADMINISTRATION WOULD ALSO HAVE TO PAY FEES TO BOND UNDERWRITERS HE CALLED THE PROPOSAL A LOSELOSE SITUATION FROM THE POINT OF VIEW OF TAXPAYERS BUT JOHN RIGGS A DEPUTY ASSISTANT ENERGY SECRETARY DISAGREED HE PREDICTED THAT THE BOND MARKET FINANCING WOULD BENEFIT BONNEVILLE NATIONAL TAXPAYERS AND REGIONAL RATEPAYERS BPA IS A FEDERAL AGENCY WITHIN THE ENERGY DEPARTMENT SERVING THE PACIFIC NORTHWEST THE CLINTON ADMINISTRATION ORIGINALLY PROJECTED A REVENUE GAIN OF 36 BILLION OVER FIVE YEARS FROM THE DEBTRESTRUCTURING INITIATIVE BUT SCALED BACK THE PROPOSAL BEFORE FORMALLY SUBMITTING IT TO CONGRESS THE WHITE HOUSE BUDGET OFFICE NOW SAYS THAT THE REVISED PROPOSAL IS REVENUE NEUTRAL IN ALL THE WHITE HOUSE ESTIMATES THAT THE FIRST INSTALLMENT OF MR GORE'S REINVENTING GOVERNMENT REFORMS WOULD REDUCE FEDERAL SPENDING BY ABOUT 57 BILLION OVER FIVE YEARS THE CBO ESTIMATE IS LESS THAN 500 MILLION UNDER THE PROPOSAL BPA WOULD SELL BONDS AT MARKET RATES TO REPAY LOWINTEREST APPROPRIATIONS MR RIGGS SAID THE DISCOUNTED PRESENT VALUE OF BPA'S 7 BILLION OF LOWINTEREST APPROPRIATED DEBT TO THE TREASURY IS ABOUT 4 BILLION A SENATE STAFF MEMO SAID THE PLAN CONTEMPLATES THE SALE OF ABOUT 41 BILLION OF BPA BONDS TO REPAY THE DISCOUNTED PRESENT VALUE OF ITS DEBT AND GIVE THE TREASURY AN EXTRA 100 MILLION THE ACTUAL LEGISLATION TO IMPLEMENT THE PLAN DOESN'T PUT A LIMIT ON THE AMOUNT OF BONDS BPA COULD SELL THE MEMO SAID THE CBO'S PREDICTION THAT THE PROPOSAL WOULD BE A REVENUE LOSER IS CAUSING THE ADMINISTRATION TO RETHINK THE ENTIRE DEAL BUT THE ENERGY DEPARTMENT'S MR RIGGS INSISTED THAT THE PROPOSAL IS SOUND AND HE FAULTED THE CBO'S CALCULATION METHODS AS SOMEWHAT BIZARRE MR BLUM NOTED THAT THE AGENCY'S CALCULATION METHODS ARE SET BY CONGRESS THE HOUSE NATURAL RESOURCES COMMITTEE LAST WEEK SHELVED THE DEBT RESTRUCTURING PLAN IN LIEU OF A FASTTRACK STUDY REQUIREMENT THAT THE FEASIBILITY OF THE PROPOSAL BE MORE FULLY STUDIED STILL ATTEMPTS TO RESURRECT THE PROPOSAL IN THE HOUSE COULD BE GENERATED BEFORE THE CURRENT SESSION ENDS SEN MARK HATFIELD R ORE WHO SUPPORTS THE DEBT RESTRUCTURING PLAN INDICATED AT YESTERDAY'S HEARING THAT HOUSE SPEAKER THOMAS FOLEY D WASH IS AMONG THOSE INTERESTED IN RESOLVING THE BUDGET SCOREKEEPING ISSUES NOW HINDERING THE PLAN AT THE SENATE HEARING THE CBO REVIEWED SIX OTHER ADMINISTRATION PROPOSALS FOR REINVENTING VARIOUS ENERGY AND NATURAL RESOURCES PROGRAMS BUT CONCLUDED THEY DIDN'T OFFER ENOUGH IN NEARTERM BUDGETARY SAVINGS 9311170145 931001 ENVIRONMENT BY CHARLES MCCOY GRIZZLIES COULD GET MORE PROTECTION AS A RESULT OF A NEW WILDLIFE RULING AND LOGGERS SAY IT'S TOO MUCH TO BEAR FOR YEARS CONSERVATIONISTS HAVE BATTLED AN INCREASING CHORUS OF LOGGERS HUNTERS AND OTHERS WHO ARGUE THAT GRIZZLY BEARS DON'T NEED AS MUCH PROTECTION AS THEY NOW GET UNDER FEDERAL LAW CURRENTLY THERE ARE ROUGHLY 15000 GRIZZLY BEARS IN ALASKA BUT ONLY ABOUT 1000 AROUND YELLOWSTONE AND GLACIER NATIONAL PARKS IN MONTANA AND WYOMING THE ONLY STATES IN THE LOWER 48 WHERE GRIZZLIES ARE FOUND THE BEAR POPULATIONS ARE CONSIDERED FAIRLY STABLE BUT MANY BEAR BIOLOGISTS CONTEND THAT CONTINUED LOGGING IN GRIZZLY HABITATS COULD EVENTUALLY DRIVE THE GIANT BEARS PAST THE POINT OF NO RETURN IN MONTANA AND WYOMING NOW RULING IN CONNECTION WITH A PLANNED FEDERAL SALE OF LOGGING RIGHTS IN MONTANA THE FEDERAL FISH AND WILDLIFE SERVICE HAS FOUND THAT PARTS OF FOREST SERVICE TIMBERLAND IN MONTANA ALREADY CONTAIN MORE ROADS THAN ARE COMPATIBLE WITH GRIZZLY HEALTH ROADS ARE THE BEARS' BANE THEY BRING IN LOGGERS AND HUNTERS AMONG OTHERS THE RULING ISSUED SEPT 7 IS THE FIRST OF ITS KIND BY THE AGENCY IN EFFECT IT MEANS THAT ANY LOGGERS WHO BUY TIMBER RIGHTS TO THE FOREST SERVICE LAND PROBABLY WILL SEE THEIR OPERATIONS SEVERELY CONSTRAINED MOREOVER ENVIRONMENTALISTS SAY THE RULING MIGHT MEAN THAT SOME EXISTING ROADS WILL HAVE TO BE PLOWED OVER BUT IT ISN'T CLEAR IF THAT WILL BE REQUIRED ENVIRONMENTALISTS SAY THE RULING MAY SIGNAL A NEW ERA IN FOREST MANAGEMENT AND NOT JUST IN GRIZZLY TERRITORY IT'S AN EXAMPLE OF THE CLINTON ADMINISTRATION'S IDEA OF MANAGING ECOSYSTEMS WITH A LIGHTER TOUCH SAYS THE WILDERNESS SOCIETY'S MICHAEL SCOTT TIMBER INTERESTS ARE EXPECTED TO CONTEST THE RULING PROBABLY IN FEDERAL COURT IT WILL DECREASE TIMBER SUPPLIES AND DRIVE PRICES HIGHER HELPING NO ONE SAYS JAMES RILEY EXECUTIVE DIRECTOR OF THE INTERMOUNTAIN FOREST INDUSTRY ASSOCIATION IN COEUR D'ALENE IDAHO STATE AND LOCAL PROSECUTORS ARE GEARING UP FOR A LEGAL ONSLAUGHT AIMED AT GETTING THE FEDERAL GOVERNMENT TO CLEAN UP ITS ACT AT TOXICWASTE SITES CITIZENS AND LOCAL OFFICIALS IN COMMUNITIES NEAR POLLUTED MILITARY BASES AND SITES COVERED BY THE GOVERNMENT'S SUPERFUND CLEANUP PROGRAM ARE INCREASINGLY EXASPERATED BY THE GLACIAL PACE OF CLEANUPS THERE A FEW LAWSUITS HAVE ALREADY BEEN FILED PRINCIPALLY IN CALIFORNIA BUT ATTORNEYS FROM HAWAII TO NEW YORK HAVE BEGUN HOLDING SEMINARS AND OTHERWISE DEVISING STRATEGIES FOR SUITS TO MAKE THE GOVERNMENT PICK UP THE PACE JERRY JOHNSTON AN ORANGE COUNTY CALIF PROSECUTOR SPECIALIZING IN ENVIRONMENTAL CRIMES WILL SOON BE BARNSTORMING THE STATE WITH SEMINARS FUNDED BY STATE REGULATORY AGENCIES ON HOW LOCAL COMMUNITIES CAN USE THE COURTS TO FORCE CLEANUP ACTION LAWSUITS MAY BE THE ONLY WAY THESE CLEANUPS ARE EVER GOING TO GET DONE SAYS MR JOHNSTON HE AND OTHERS SAY THAT MILITARY AND GOVERNMENT RED TAPE AND OCCASIONALLY OUTRIGHT STONEWALLING BY SOME MILITARY OFFICERS HAS SO STALLED CLEANUP EFFORTS THAT ONLY COURT ORDERS CAN GET THINGS MOVING LOCAL PROSECUTORS ARE THE ONES THAT ARE GOING TO HAVE TO GET THIS WORK ROLLING ACCORDING TO DICK NIXON HEAD OF THE NATIONAL ASSOCIATION OF DISTRICT ATTORNEYS THE ENVIRONMENTAL PROTECTION AGENCY WHICH OVERSEES BOTH THE MILITARY CLEANUPS AND SUPERFUND SITES SAYS IT'S ALREADY TRYING TO GET THE LEAD OUT OF ITS CLEANUP EFFORTS BUT IT'S CLEARLY AN UPHILL BATTLE OF THE 1200 SUPERFUND SITES ONLY 50 HAVE BEEN FULLY CLEANED UP MOREOVER MILITARY CLEANUPS WILL ONLY BECOME A BIGGER MESS AS MORE BASES SHUT DOWN MUSHROOMS AND GREENS GO TOGETHER MORE THAN EVER SUGGESTS NEW EVIDENCE OF THE FUNGI'S ENVIRONMENTAL EFFECTS SCIENTISTS AT UTAH STATE UNIVERSITY AND ELSEWHERE SAY RESEARCH SHOWS THAT WHITE ROT FUNGI WHICH INCLUDE SUCH DELICACIES AS THE OYSTER MUSHROOM MAY BE POTENT NEW WEAPONS IN THE POLLUTION WAR IT TURNS OUT THAT WHITE ROT FUNGI RELEASE ENZYMES AND ACIDS THAT BREAK DOWN SUCH TOXINS AS DDT PCBS AND DIOXIN RENDERING THEM HARMLESS SCIENTISTS HAVE LONG MARVELED AT WHITE ROT FUNGI'S ABILITY TO DEGRADE WOOD THE FUNGI PRODUCES THE WHITE FLAKY MATERIAL THAT ENCRUSTS MANY TREES WORLDWIDE OVER TIME WHITE ROT FUNGI CAN BASICALLY PULVERIZE WOOD BUT STEPHEN AUST A UTAH STATE CHEMISTRY PROFESSOR SAYS SCIENTISTS WERE IN THE DARK ABOUT THE FUNGI'S ANTIPOLLUTION PROWESS UNTIL THE MID1980S WHEN THEY BEGAN TESTING ITS EFFECTS ON POISONS LO AND BEHOLD THESE FUNGI DEGRADE A WIDE VARIETY OF TOXIC CHEMICALS DR AUST SAYS HE BELIEVES CERTAIN MUSHROOMS AND OTHER WHITE ROT FUNGI WILL PROVE ONE OF THE CHEAPEST AND MOST EFFECTIVE POLLUTION FIGHTERS EVER SOME SKEPTICS THINK SUCH PRONOUNCEMENTS ARE WELL SO MUCH ROT THEY NOTE THAT THE SCIENTIFIC STUDIES ON WHITE ROT FUNGI'S CLEANUP POTENTIAL ARE CONTRADICTORY AND PRELIMINARY BUT THE EPA IS STUDYING THE FUNGI'S CLEANUP POWERS MEANWHILE SEVERAL COMPANIES HAVE ALREADY SPRUNG UP TO PEDDLE WHITE ROT'S PROMISE SUCH AS MYCOTECH AN ENVIRONMENTAL CLEANUP CONCERN IN BUTTE MONT AND INTECH ONEEIGHTY IN LOGAN UTAH SIMON MAWSON A TOP OFFICIAL OF ALASKA'S DEPARTMENT OF ENVIRONMENTAL CONSERVATION WAS CONVICTED RECENTLY IN FEDERAL COURT IN ANCHORAGE ON CHARGES OF ILLEGALLY KILLING SEVEN MOOSE YET HAS KEPT HIS JOB ANGERING THE AGENCY'S RANK AND FILE A MAN WHO BREAKS WILDLIFE LAWS HAS ZERO CREDIBILITY AS AN ECOCOP GRUMBLES ONE REGULATOR SAN FRANCISCANS MARVEL AS PEREGRINE FALCONS NEST ON THE GOLDEN GATE BRIDGE FOR THE FIRST TIME IN 30 YEARS MORE TESTIMONY OF THE BIRDS' RECOVERY FROM A BRUSH WITH EXTINCTION CAUSED BY DDT SEE RELATED LETTER LETTERS TO THE EDITOR GRIZZLY HYSTERIA WSJ NOV 17 1993 9310010008 YY93 MM11 9311170097 931020 CLINTON'S CONSERVATIVE HEALTH PLAN BY ALICE M RIVLIN THE CLINTON ADMINISTRATION'S PLAN FOR FIXING WHAT AILS THE AMERICAN HEALTH CARE SYSTEM IS BOLD AND COMPREHENSIVE BUT HARDLY RADICAL INDEED IT IS CONSERVATIVE IN AT LEAST THREE OF THE SENSES OF THAT TERM FIRST IT REFORMS THE SYSTEM WITH MINIMAL DISRUPTION TO THE BASIC MODE OF PAYING FOR HEALTH CARE THAT AMERICANS ARE USED TO EMPLOYERBASED INSURANCE SECOND IT RELIES PRIMARILY ON MARKET INCENTIVES NOT GOVERNMENT REGULATION TO CONTROL ESCALATING HEALTH CARE COSTS THIRD IT CAN BE FINANCED WITHOUT SMOKE AND MIRRORS PRIMARILY BY REALLOCATING RESOURCES ALREADY DEVOTED TO HEALTH CARE AND DOES NOT REQUIRE LARGE TAX INCREASES ALMOST EVERYONE AGREES THAT IF WE ARE TO HAVE THE PRODUCTIVE COMPETITIVE FLEXIBLE ECONOMY THAT WE ALL WANT WE CANNOT ALLOW THE HEALTH CARE TAX TO CONTINUE RISING WE ARE ALREADY USING 14 OF OUR GROSS DOMESTIC PRODUCT TO PAY FOR HEALTH CARE EVERY TIME WE LET THIS TAX DRIFT UP ANOTHER PERCENTAGE POINT WE ARE ALLOCATING AN ADDITIONAL 50 BILLION A YEAR OF THE NATION'S PRECIOUS RESOURCES TO HEALTH CARE MOREOVER A HIGHGROWTH ECONOMY REQUIRES THAT PEOPLE BE ABLE TO MOVE INTO NEW JOBS BUT OUR CURRENT SYSTEM LOCKS PEOPLE INTO JOBS AND ONTO WELFARE OUT OF FEAR THAT THEY WILL LOSE THEIR HEALTH INSURANCE FINALLY HARDLY ANYONE WOULD DENY THAT THE WAY WE NOW PAY FOR HEALTH CARE CONTRIBUTES TO UNNECESSARY COST INCREASES AND A WASTEFUL USE OF HEALTH RESOURCES NOW THAT THERE IS SUCH BROAD CONSENSUS THAT THE CURRENT SYSTEM IS PUNISHING THE ECONOMY WHAT IS TO BE DONE THE CLINTON TEAM REJECTED RADICAL SURGERY SUCH AS A SINGLEPAYER SYSTEM OR GOVERNMENTSET HEALTH CARE PRICES IN FAVOR OF RESTRUCTURING THE CURRENT SYSTEM AND BUILDING ON ITS STRENGTHS THERE ARE TWO TYPES OF EVIDENCE THAT SUCH RESTRUCTURING CAN WORK FIRST HEALTH MAINTENANCE ORGANIZATIONS AND OTHER GROUPS OF PROVIDERS COMPENSATED ON A PERCAPITA BASIS HAVE DEMONSTRATED THAT THEY CAN DELIVER GOOD CARE FOR APPRECIABLY LOWER COST THESE GROUPS HAVE INCENTIVES TO EMPHASIZE PREVENTION TO REDUCE UNNECESSARY PROCEDURES TESTS AND HOSPITALIZATIONS AND TO ECONOMIZE ON THE ACQUISITION AND USE OF EXPENSIVE EQUIPMENT SECOND BIGBUSINESS EXPERIENCE HAS SHOWN THAT A LARGE BUYER CAN NEGOTIATE WITH COMPETING HEALTH PLANS AND GET A MUCH BETTER DEAL THAN IS AVAILABLE TO INDIVIDUALS AND SMALL FIRMS THAT LACK MARKET POWER THE CLINTON PLAN WOULD ENCOURAGE DOCTORS AND OTHER PROVIDERS TO JOIN HEALTH PLANS THAT WOULD BE PAID PERCAPITA PREMIUMS IT WOULD GIVE INDIVIDUALS AND SMALL EMPLOYERS ACCESS TO THE MARKET POWER THAT BIG BUSINESS HAS USED SO SUCCESSFULLY BY ORGANIZING PURCHASING COOPERATIVES OR HEALTH ALLIANCES TO BARGAIN WITH HEALTH PLANS FOR THE BEST DEAL THE CLINTON PLAN WOULD ENSURE EVERYONE AT LEAST A STANDARD SET OF HEALTH BENEFITS BENEFITS THAT WOULD NOT BE AT RISK IF AN INDIVIDUAL CHANGED JOBS BECAME UNEMPLOYED OR GOT SICK ALL BUSINESSES WOULD HAVE TO PROVIDE HEALTH COVERAGE BUT SUBSIDIES WOULD REDUCE THE BURDEN ON SMALL AND LOWWAGE FIRMS EMPLOYEES WOULD SHARE IN THE COST WITH A CHOICE OF PLANS AND CLEAR INCENTIVES TO CHOOSE THE MOST COSTEFFECTIVE OPTIONS FOR MEETING THEIR HEALTH NEEDS THE CLINTON APPROACH REFLECTS STRONG FAITH THAT CONSUMER INCENTIVES COMBINED WITH BUYER POWER AND BETTER INFORMATION ABOUT QUALITY AND PERFORMANCE CAN REIN IN ESCALATING COSTS THAT FAITH IS STRONG BUT NOT ABSOLUTE IF HEALTH CARE PREMIUMS CONTINUE RISING APPRECIABLY FASTER THAN OTHER PRICES GLOBAL BUDGETS WOULD CONTROL THE RATE OF INCREASE OF PREMIUMS IF THE MARKET INCENTIVES WORK AND THE CLINTON TEAM BELIEVES THEY WILL THEN THE CONTROLS WILL NOT BE NECESSARY MOST OF THE COST OF HEALTH CARE FOR WORKING PEOPLE AND THEIR FAMILIES WOULD BE SHARED AS AT PRESENT BY EMPLOYERS AND EMPLOYEES THE MAJOR NEW COST FOR THE GOVERNMENT WOULD BE THE SUBSIDIES NEEDED TO MAKE THE INSURANCE AFFORDABLE TO SMALL FIRMS AND LOWINCOME INDIVIDUALS THESE SUBSIDIES ALONG WITH NEW BENEFITS UNDER MEDICARE FOR OUTOFHOSPITAL PRESCRIPTION DRUGS AND HOME HEALTH CARE FOR THE SEVERELY DISABLED AND SOME OTHER ADMINISTRATIVE COSTS ARE EXPECTED TO INCREASE GOVERNMENT HEALTH SPENDING BY ROUGHLY 130 BILLION BY THE YEAR 2000 WHEN THE PROGRAM IS FULLY UP AND RUNNING REVENUE INCREASES PRINCIPALLY FROM A HEALTHY INCREASE IN THE CIGARETTE TAX ARE EXPECTED TO PRODUCE ONLY ABOUT 30 BILLION THE REST ROUGHLY 100 BILLION WILL COME FROM REALLOCATING RESOURCES THAT WOULD OTHERWISE HAVE GONE INTO EXISTING GOVERNMENT PROGRAMS THESE OFFSETTING SAVINGS IN OTHER GOVERNMENT PROGRAMS ARE NOT AS SOME CRITICS HAVE ALLEGED VAGUE CAPS OR UNREALISTIC HOPES FOR REDUCING WASTE FRAUD AND ABUSE RATHER THE ADMINISTRATION IS PROPOSING SPECIFIC CHANGES IN PROGRAM RULES THAT ARE FEASIBLE PRECISELY BECAUSE OF THE PROPOSED REFORM OF THE PRIVATE SYSTEM FOR EXAMPLE MEDICARE AND MEDICAID COVER MANY WORKING PEOPLE UNDER THE NEW RULES THE WORKING ELDERLY AND THE WORKING POOR WOULD BE COVERED BY THEIR EMPLOYERS INSTEAD BOTH PROGRAMS ALSO MAKE HUGE PAYMENTS TO HOSPITALS TO HELP THEM COVER THE COST OF TREATING THE UNINSURED WHEN EVERYONE HAS INSURANCE THESE PAYMENTS WILL BE SHARPLY REDUCED INCREASES IN REIMBURSEMENT RATES FOR PROVE WOULD ALSO BE SLOWED A CHANGE MADE MORE FEASIBLE BECAUSE REIMBURSEMENT FOR ALL PROVIDERS WILL BE RISING LESS RAPIDLY IN ADDITION UPPERINCOME PEOPLE WOULD PAY A LARGE SHARE OF THE HEAVILY SUBSIDIZED PREMIUM FOR PHYSICIAN CARE UNDER MEDICARE THESE SPECIFIC CHANGES IN THE MEDICARE AND MEDICAID RULES WOULD REDUCE THE COST OF THE TWO PROGRAMS BY MORE THAN 100 BILLION IN THE YEAR 2000 THE COST OF OTHER GOVERNMENT HEALTH PROGRAMS FOR VETERANS FEDERAL EMPLOYEES AND MILITARY DEPENDENTS WILL ALSO GROW LESS RAPIDLY AS SOME OF THEIR PATIENTS MOVE INTO HEALTH ALLIANCES UNDER CURRENT POLICIES FEDERAL HEALTH EXPENDITURES ARE EXPECTED TO BE ABOUT 680 BILLION IN 2000 ABOUT 465 BILLION OF WHICH WILL BE FOR MEDICARE AND THE FEDERAL SHARE OF MEDICAID ALONE THE ADMINISTRATION IS NOT PROPOSING TO REDUCE FEDERAL HEALTH SPENDING ONLY TO REDUCE THE ANNUAL RATE OF GROWTH FROM ABOUT 10 TO ABOUT 5 BY 2000 AS THE NEW SYSTEM PHASES IN IN A SEPT 29 ARTICLE ON THIS PAGE MARTIN FELDSTEIN ARGUED THAT POLITICAL OPPOSITION WILL MAKE LARGE REDUCTIONS IN THE GROWTH OF MEDICARE AND MEDICAID IMPOSSIBLE IN THE ABSENCE OF HEALTH CARE REFORM HE WOULD BE RIGHT BROADENED EMPLOYER COVERAGE AND SYSTEMWIDE REDUCTION OF COST GROWTH HOWEVER MAKE THESE SAVINGS FEASIBLE WHILE THE NEW PRESCRIPTION DRUG AND HOME HEALTH BENEFITS UNDER MEDICARE MAKE THE PACKAGE ATTRACTIVE TO THE ELDERLY MR FELDSTEIN ALSO ARGUED THAT THE CLINTON PLAN'S REQUIREMENT THAT EMPLOYERS PROVIDE HEALTH INSURANCE TO THEIR EMPLOYEES WILL REDUCE WAGES AND CUT TAX REVENUES TO THE TREASURY QUITE IRRELEVANTLY HE CALCULATES HOW MUCH REVENUE THE TREASURY WOULD LOSE IF NO FIRMS PROVIDED HEALTH INSURANCE NOW AND ALL WERE SUBJECTED TO A NEW 79 PAYROLL TAX TO PROVIDE SUCH COVERAGE IN FACT HOWEVER MOST PEOPLE ARE ALREADY COVERED BY EMPLOYERPROVIDED INSURANCE MANY WITH MORE GENEROUS COVERAGE THAN THE CLINTON PLAN REQUIRES FIRMS WHOSE COSTS ARE REDUCED BY THE PLAN WILL INITIALLY HAVE HIGHER PROFITS AND ULTIMATELY PROBABLY PAY HIGHER WAGES THAN THEY DO AT PRESENT IN EITHER CASE TREASURY REVENUES WILL INCREASE EMPLOYERS NOT NOW PROVIDING HEALTH INSURANCE WILL HAVE TO PAY MORE BUT THE IMPACT ON THEM WILL BE REDUCED BY SUBSIDIES VERY SMALL FIRMS WILL HAVE THEIR COST INCREASE CAPPED AT 35 OF PAYROLL A MORE ACCURATE READING OF THE PLAN WOULD HAVE LED MR FELDSTEIN TO THE CONCLUSION THAT TOTAL WAGES AND TREASURY REVENUE ARE LIKELY TO GO UP IF THE PLAN IS ENACTED THERE IS PLENTY OF UNCERTAINTY ABOUT THE FUTURE COST OF HEALTH CARE BUT TWO CURRENT FACTS CANNOT BE DENIED ONE THE US ALREADY HAS AN ELABORATE HEALTH CARE SYSTEM THAT LEAVES MILLIONS OF PEOPLE UNCOVERED AND WHOSE COSTS ARE RISING RAPIDLY TWO GOVERNMENT ALREADY PAYS MORE THAN 40 OF AMERICA'S HEALTH BILL THE QUESTION NOW IS WHETHER WITHOUT SCRAPPING THE ENTIRE SYSTEM WE CAN INTRODUCE INCENTIVES THAT WILL MAKE HEALTH CARE DELIVERY MORE EFFICNT AND WHETHER WE CAN REALLOCATE SOME OF THE RESOURCES NOW TIED UP IN COSTLY GOVERNMENT PROGRAMS TO MAKING INSURANCE AFFORDABLE FOR THE CURRENTLY UNINSURED THE ARCHITECTS OF THE CLINTON PLAN BELIEVE THAT WE CAN AND THAT WE OWE IT TO THE AMERICAN PEOPLE TO TRY MS RIVLIN IS DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET SEE RELATED LETTER LETTERS TO THE EDITOR CLINTON'S RADICAL HEALTH PLAN WSJ NOV 17 1993 9310200107 YY93 MM11 9311170095 931021 SHADES OF CARTER IN CLINTON HEALTH PLAN BY DANIEL CASSE IN FEBRUARY 1980 ARKANSAS GOV BILL CLINTON HOSTED A THREEDAY SUMMIT IN LITTLE ROCK TO PROMOTE PRESIDENT JIMMY CARTER'S ENERGY POLICY AMONG THE NATION'S GOVERNORS IT WAS A FIASCO ONLY SIX GOVERNORS BOTHERED TO SHOW UP AND EVEN THE KEYNOTE SPEAKER ENERGY SECRETARY CHARLES DUNCAN FAILED TO APPEAR THE FEW ATTENDEES WERE LEFT TO SQUABBLE OVER THE PROPRIETY OF LARGE PROFITS FOR THE OIL COMPANIES A PET PEEVE OF MR CLINTON'S THE FAILURE OF GOV CLINTON'S ENERGY SUMMIT SYMBOLIZED THE LARGER CATASTROPHE OF THE CARTER ENERGY POLICY YET DESPITE HIS FAMILIARITY WITH MR CARTER'S EXPERIENCE PRESIDENT CLINTON SEEMS TO HAVE TAKEN FEW LESSONS FROM IT THE PRESIDENT'S HEALTH CARE REFORM SHOWS A STARTLING SIMILARITY TO THE POLICY LEITMOTIF OF MR CARTER'S FAILED PRESIDENCY SO REMARKABLE ARE THE PARALLELS THAT IT IS WORTH CONSIDERING WHETHER HEALTH CARE REFORM WILL ULTIMATELY BE MR CLINTON'S UNDOING JUST AS A MISGUIDED NATIONAL ENERGY PLAN DID IN THE LAST DEMOCRATIC INHABITANT OF THE WHITE HOUSE ENERGY POLICY WAS A DOMINANT THEME OF MR CARTER'S CAMPAIGN FOR THE PRESIDENCY IT BECAME THE SUBJECT OF A TELEVISED ADDRESS AND AN EARLY SPEECH TO A JOINT SESSION OF CONGRESS HIS NATIONAL ENERGY PLAN WAS A FARREACHING ATTEMPT TO REDUCE ENERGY CONSUMPTION AND BOOST DOMESTIC PRODUCTION THROUGH TAXES REGULATION AND NEW GOVERNMENT PROGRAMS LIKE HEALTH CARE TODAY ENERGY PROBLEMS IN 1977 WERE PERCEIVED BY THE PUBLIC TO BE A TOP PRIORITY 72 OF THE PUBLIC BELIEVED THAT THE GOVERNMENT NEEDED TO DEVELOP AN ENERGY POLICY TO AVERT A NATIONAL CATASTROPHE THE ESSENCE OF MR CARTER'S ENERGY PITCH WILL BE FAMILIAR TO ANYONE FOLLOWING MR CLINTON'S SALESMANSHIP ON HEALTH CARE MR CARTER COMPLAINED THAT THE US WAS THE ONLY WESTERN DEMOCRACY WITHOUT A NATIONAL ENERGY POLICY HE SPOKE DARKLY ABOUT THE POWER OF SPECIAL INTERESTS HE CALLED IN A PROMINENT REPUBLICAN JAMES SCHLESINGER TO HELP MANAGE HIS POLICY EFFORTS HE EXCORIATED THE OIL INDUSTRY FOR PROFITEERING HE WARNED THAT FAILURE TO PASS HIS PLAN COULD THREATEN OUR FREE INSTITUTIONS THE LINCHPIN OF MR CARTER'S PLAN WAS THE NOTION THAT AMERICANS CONSUMED TOO MUCH ENERGY AND NEEDED TO FREE THEMSELVES FROM DEPENDENCE ON OPEC OIL SOME ECONOMISTS HAD SUGGESTED THAT MUCH OF THE ENERGY PROBLEM STEMMED FROM A HISTORY OF GOVERNMENT SUBSIDIES PROTECTIONISM AND CONTROLS THAT HAD GIVEN US CONSUMERS ARTIFICIALLY LOW ENERGY PRICES A SITUATION NOT UNLIKE TODAY'S HEALTH CARE COSTS ONLY A FRACTION OF WHICH ARE ACTUALLY PAID BY THE PATIENT BUT INSTEAD OF BRINGING MORE MARKET FORCES TO BEAR ON ENERGY POLICY MR CARTER ADVOCATED A SERIES OF GUIDELINES AND TAXES TAXES ON GAS GUZZLING CARS REGULATION OF NATURAL GAS WINDFALLPROFITS TAXES THE CREATION OF A DEPARTMENT OF ENERGY AND A STANDBY TAX ON GASOLINE TO BE IMPOSED IF CONSUMPTION GOT OUT OF HAND BUT WHAT IS MOST STRIKING IN ITS SIMILARITY TO THE CLINTON HEALTH REFORM EFFORTS WAS MR CARTER'S DESIRE TO ALTER AMERICAN HABITS AND OUR USE OF A BASIC COMMODITY JUST AS MR CLINTON WOULD PUSH US FROM PERSONAL PHYSICIANS TO THRIFTIER HEALTH MAINTENANCE ORGANIZATIONS MR CARTER ENVISIONED A SCENARIO WHERE AMERICANS WOULD BE GOADED THROUGH GOVERNMENT INCENTIVES TO ABANDON THE USE OF NATURAL GAS AND OIL AND SWITCH TO THE MORE PLENTIFUL IF LESS DESIRABLE COAL SO COMPLEX WAS THIS ENERGY PLAN THAT IT TOOK CONGRESS 18 MONTHS TO EMERGE WITH AN INDIGESTIBLE TOME OF LEGISLATION THAT BARELY RESEMBLED THE ORIGINAL PROPOSALS MR CARTER HOWEVER WAS UNDAUNTED AS GAS LINES FORMED HE INTRODUCED STILL FURTHER ENERGY LEGISLATION TO ESTABLISH AN INTERNAL ENERGY REGIME OF IMMENSE BUREAUCRATIC DIMENSIONS HIS ENERGY SECURITY ACT PROPOSED CREATING A GOVERNMENT CORPORATION TO DEVELOP ALTERNATIVE SYNTHETIC FUELS AN ENERGY MOBILIZATION BOARD WOULD HAVE SEEMINGLY UNLIMITED AUTHORITY OVER STATE ENERGY PROGRAMS SECURITY BECAME THE BUZZWORD OF HIS ENERGY CAMPAIGN OMINOUS REFERENCES TO SECURITY SCORN FOR OUR OVERLY INDULGENT LIFESTYLE THE DESIRE TO CREATE NEW GOVERNMENT SUPERSTRUCTURES URGINGS THAT WE ALL NEED TO CHANGE THE WAY WE LIVE NEARLY EVERY ASPECT OF MR CARTER'S CHIEF DOMESTIC POLICY PLAN FINDS ECHOES TODAY IN THE STILLYOUNG CLINTON HEALTH CARE PROPOSAL THE POLITICAL LESSON OF THE CARTER EXPERIENCE IS THAT THE NATIONAL ENERGY PLAN FINALLY COLLAPSED ALTHOUGH NOT SIMPLY OF ITS OWN WEIGHT THE TIDE TURNED AGAINST MR CARTER ONLY WHEN A FULLTHROATED ASSAULT BEGAN ON THE PREMISES OF THE PLAN ITSELF MOST PROMINENT AMONG THE OPPONENTS WAS REP DAVID STOCKMAN WHO DERIDED THE ENTERPRISE AS ENERGY JINGOISM THAT WOULD HAVE THE PERVERSE EFFECT OF DAMPING ECONOMIC ACTIVITY THEN CAME PRESIDENTIAL CANDIDATE RONALD REAGAN NOT CONTENT TO QUIBBLE WITH THE COST OR EFFICIENCY OF MR CARTER'S PROPOSALS HE CRITICIZED THE WHOLE NATIONAL ENERGY POLICY AS THE SHARING OF SCARCITY WHEN THE ADMINISTRATION INTRODUCED ITS PROPOSED ENERGY BOARD HE DENOUNCED IT AS A GROTESQUE EXPANSION OF FEDERAL POWER HE TOLD THE REPUBLICAN CONVENTION IN DETROIT THAT WE ARE AN ENERGY RICH NATION AND PROCEEDED TO REFRAME THE DEBATE AS ONE BETWEEN DECONTROLLING THE ENERGY MARKET AND RESTRUCTURING IT THROUGH BUREAUCRATIC EDICT AND FEDERAL OVERSIGHT IN CHALLENGING THE UNDERPINNINGS OF MR CARTER'S DOMESTIC POLICY MR REAGAN AT ONCE SEIZED THE OPPORTUNITY FOR ELECTORAL SUCCESS AND LAID THE GROUNDWORK FOR FUTURE REPUBLICAN ENERGY POLICY BASED ON DEREGULATION POLITICALLY UNTHINKABLE ONLY THREE YEARS EARLIER THE SAME OPPORTUNITY EXISTS FOR THE GOP TODAY AS THEY WERE WHEN THEY WERE FIRST FACED WITH MR CARTER'S NATIONAL ENERGY PLAN CONGRESSIONAL REPUBLICANS HAVE BEEN FLUMMOXED BY MR CLINTON'S RHETORICAL SKILL AND CLAIMS OF CRISIS WHEN THE PLAN'S DETAILS EMERGE HIS OPPONENTS' GREATEST MISTAKE WOULD BE TO CONDUCT THE DEBATE SOLELY ON COSTCONTAINMENT AND BUDGET ISSUES A MERELY DILUTED CLINTON PLAN IS AN INSUFFICIENT POLITICAL STRATEGY MR REAGAN'S SUCCESS IN CHALLENGING MR CARTER'S ENERGY POLICY WAS DUE TO HIS ABILITY TO ADVANCE ARGUMENTS NOT AS AN OPPOSITION POLITICIAN BUT AS THE LEADER OF A MOVEMENT THAT SAW LESS GOVERNMENT AS THE TOUCHSTONE OF GOOD POLICY THE CLINTON HEALTH CARE PLAN WITH ITS HOSTILITY TO FREE MARKETS AND FAITH IN INTRUSIVE GOVERNMENT DESERVES NO LESSER TREATMENT MR CASSE IS POLICY DIRECTOR OF THE PROJECT FOR THE REPUBLICAN FUTURE SEE RELATED LETTER LETTERS TO THE EDITOR ALLOW ME TO SOLVE CASE OF THE MISSING SPEAKER WSJ NOV 17 1993 9310210018 YY93 MM11 9311170063 931027 TEXAS JOURNAL HOT TEXAS IMPORT CALIFORNIA FIRMS CITIES LURE COMPANIES BY TOUTING LOW COSTS AND LESS REGULATION BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL SOUND FAMILIAR IT SHOULD HUNDREDS OF CALIFORNIA COMPANIES TURNED OFF BY THEIR STATE'S HIGH COSTS AND BURDENSOME REGULATIONS HAVE SHOPPED THE NATION IN RECENT YEARS LOOKING FOR A NEW HOME AND TEXAS HAS EMERGED AS ONE OF THE HOTTEST DESTINATIONS ACCORDING TO A 1992 SURVEY OF 1000 MANUFACTURERS THAT HAD EXPANDED OR RELOCATED OUT OF CALIFORNIA SINCE 1980 94 CHOSE TEXAS FOLLOWED CLOSELY BY NEVADA WHICH CAPTURED 92 THE SURVEY PREPARED FOR SOUTHERN CALIFORNIA EDISON CO FOUND THAT CALIFORNIA'S OTHER NEIGHBORS ARIZONA AND OREGON LAGGED FAR BEHIND AT 61 AND 35 RESPECTIVELY MOREOVER IT ISN'T ONLY THE STATE'S BIGGEST CITIES THAT HAVE BEEN ATTRACTING WEST COAST MALCONTENTS MANY OF TEXAS' SMALLER CITIES HAVE LAUNCHED THE MOST AGGRESSIVE AND SUCCESSFUL EFFORTS THE COMPETITION AMONG CITIES AND COUNTIES IN TEXAS HAS INCREASED DRAMATICALLY SAYS WACO CHAMBER OF COMMERCE PRESIDENT JACK STEWART THIS YEAR HAS SEEN A SLIGHT SLOWDOWN IN THE TORRENT OF BUSINESSES LEAVING CALIFORNIA AS RECESSIONSTRAPPED COMPANIES HAVE BECOME RELUCTANT TO COUGH UP CASH FOR A MOVE OR EXPANSION BUT TEXAS CITIES CONTINUE TO FOCUS AS MUCH AS 50 OF THEIR RECRUITING EFFORTS ON THE WEST COAST I FEEL THERE IS REAL PROMISE IN THE CALIFORNIA MARKETPLACE SAYS DAN SEAL A MARKETING EXECUTIVE AT THE GREATER HOUSTON PARTNERSHIP WHY TEXAS CALIFORNIA COMPANIES CITE A HOST OF ECONOMIC REASONS INCLUDING LOWER LABOR OPERATING AND LIVING COSTS FRIENDLY REGULATORS AND A LACK OF A STATEWIDE PERSONAL INCOME TAX TEXAS IS CENTRALLY LOCATED BETWEEN THE EAST AND WEST COASTS AND IS CLOSE TO GROWING MEXICAN MARKETS AND A HIGH QUALITY OF LIFE INCLUDING MILD WINTERS REMINISCENT OF CALIFORNIA ADDS TO THE ALLURE FOR POWELL CLINTON PRESIDENT OF FUEL HARVESTERS INC A MAKER OF RECYCLING EQUIPMENT THE LOW COST OF LIVING IN MIDLAND WAS A KEY FACTOR IN HIS DECISION TO MOVE IN LATE 1990 FROM GREEN VALLEY CALIF WHERE THE LEASTEXPENSIVE HOUSES GO FOR ABOUT 125000 WE COULDN'T AFFORD TO PAY ENOUGH FOR OUR EMPLOYEES TO AFFORD TO LIVE THERE HE SAYS WE HAD EMPLOYEES LIVING IN TRAILERS FUEL HARVESTERS HAS HAD FEW EMPLOYEERECRUITMENT PROBLEMS IN MIDLAND A CITY FULL OF SKILLED WORKERS LAID OFF FROM THE PETROLEUM INDUSTRY ANOTHER REASON SO MANY COMPANIES HAVE CHOSEN TEXAS IS THAT STATE PERSONALITIES FROM GOV ANN RICHARDS TO FORMER DALLAS COWBOYS QUARTERBACK ROGER STAUBACH HAVE DONE A REMARKABLE JOB OF SELLING THE IDEA THAT TEXAS BUSINESSES HAVE LOWER COSTS AND THAT THE STATE PROVIDES A GOOD VALUE SAYS BARRY SEDLIK MANAGER OF BUSINESS RETENTION AT SOUTHERN CALIFORNIA EDISON WHICH STANDS TO LOSE CUSTOMERS EACH TIME A BUSINESS LEAVES THE AREA THIS IS OF THE GREATEST CONCERNS TO CALIFORNIA AND WE REALLY NEED TO PAY ATTENTION WHILE TEXAS GOVERNMENT OFFICIALS DOWNPLAY THE SUGGESTION THAT THEY ARE RAIDING CALIFORNIA IT'S HARD TO CALL IT ANYTHING ELSE DIRECT MAIL TELEMARKETING TRADE SHOWS AND INDUSTRYSPECIFIC ADVERTISING ALL OF IT IS USED BY THE STATES AND INDIVIDUAL CITIES IN AN EFFORT TO LURE UNHAPPY CALIFORNIA COMPANIES INCENTIVES RANGING FROM LOCAL AND COUNTY PROPERTYTAX ABATEMENTS TO OUTRIGHT PAYMENT OF A COMPANY'S RELOCATION COSTS ARE INCREASINGLY AVAILABLE FOR WEST COAST PROSPECTS IN ADDITION LOCAL AUTHORITIES HELP BUSINESSES TAP INTO STATE INCENTIVES SUCH AS JOBTRAINING PROGRAMS AND TAX ABATEMENT IN ENTERPRISE ZONES MANY OF THE BIGGEST PRIZES HAVE GONE TO THE STATE'S BIGGEST CITIES IN PARTICULAR DALLAS HOUSTON AND AUSTIN AUSTIN FAST RIVALING CALIFORNIA'S SILICON VALLEY AS A TECHNOLOGY CENTER HAS LURED DOZENS OF COMPANIES WITH ITS UNIVERSITYEDUCATED WORK FORCE AND ADVANCED TELECOMMUNICATIONS NETWORK HOUSTON SEEKING TO REPLACE JOBS LOST WITH A DECLINE IN THE OIL INDUSTRY HAS SUCCESSFULLY PITCHED THE PROXIMITY OF THE JOHNSON SPACE CENTER AND IN THE DALLAS AREA THE DALLASFORT WORTH AIRPORT IS A BIG SELLING POINT TRANSAMERICA INSURANCE GROUP LOOKING TO MOVE ITS NATIONAL SUPPORT CENTER TO A CENTRAL TIME ZONE RECENTLY SETTLED ON IRVING BECAUSE OF THE GREATER DALLAS AREA'S WELLEDUCATED WORK FORCE AND LOW COSTS OF DOING BUSINESS ANOTHER DECIDING FACTOR WAS THE AIRPORT SAYS A COMPANY SPOKESWOMAN WE WANT OUR EXECUTIVES TO BE ABLE TO TAKE DAILY TRIPS AND BE BACK IN THE OFFICE THE SAME DAY SHE SAYS THE INSURER OWNED BY TIG HOLDINGS INC PLANS TO BRING 1200 JOBS TO THE REGION BY SPRING MAKING IT ONE OF TEXAS' LARGEST CALIFORNIA RECRUITS AGAIN THOUGH IT'S THE SMALLER CITIES THAT HAVE GONE TO SOME OF THE MOST EXTRAORDINARY LENGTHS TO WOO COMPANIES FOR INSTANCE WHEN AN OUTDATED MIDLAND ZONING CODE MENACED CHRISTOPHER JACOBS'S PLAN TO MOVE HIS TINY ELECTRONICS PLANT TO A MIDLAND SITE THE CITY'S MAYOR HANDDELIVERED A LETTER THAT ALL BUT PROMISED THE REGULATION WOULD SOON BE HISTORY THEN THE MAYOR BOUGHT MR JACOBS LUNCH THAT WOULDN'T HAVE HAPPENED IN LOS ANGELES SAYS MR JACOBS WHO PACKED UP AND MOVED HIS JACOBS ELECTRONICS INC TO MIDLAND IN APRIL 1991 AFTER TWO DECADES OF DOING BUSINESS IN CALIFORNIA MOREOVER WHILE SUCH CITIES AS DALLAS PLAN OCCASIONAL STARSTUDDED DELEGATIONS TO CALIFORNIA AMARILLO POPULATION 192000 HAS TAKEN THE ONSITE RECRUITMENT CONCEPT ONE STEP FURTHER THE CITY'S ECONOMIC DEVELOPMENT CORPORATION SENDS STAFFER KIRK FOLKNER TO LIVE TWO WEEKS EACH MONTH IN A RENTED APARTMENT IN IRVINE CALIF SO HE CAN GET CLOSE TO THE ACTION AND WITH 75 MILLION EACH YEAR IN ECONOMICDEVELOPMENT MONEY FUNDED BY A HALFPERCENT SALES TAX AMARILLO CAN ALSO AFFORD TO OFFER OTHER INCENTIVES WE CAN DO ANYTHING EXCEPT BUY A COMPANY BOASTS MR FOLKNER WHO IS PLANNING A DIRECTMAIL CAMPAIGN AMARILLO'S AGGRESSIVE MARKETING CAMPAIGN BEGUN IN JANUARY HASN'T LURED ANY CALIFORNIA COMPANIES YET BUT FOUR MANUFACTURERS PLAN VISITS SOON HE SAYS WHILE MIDLAND DOESN'T SEND ANYONE TO LIVE IN CALIFORNIA IT DOES BLANKET THE STATE WITH DIRECTMAIL PITCHES THE CITY'S CHAMBER OF COMMERCE THIS SUMMER ATTRACTED A COMPANY THAT MAKES MODULAR BARNS WITH ITS MAILING AND HOSTED THREE VISITS FROM PROSPECTS IN JUNE SAYS JANNA KING WHO RECENTLY STEPPED DOWN AS CHAMBER PRESIDENT WHAT'S IN THE LETTER CITING COMPETITIVE PRESSURES FROM OTHER COMMUNITIES MS KING WON'T RELEASE ITS CONTENTS YOU DON'T GIVE AWAY ANY SECRETS YOU DON'T NEED TO SHE SAYS BUT MIDLAND'S SUCCESS WITH DIRECT MAIL SEEMS TO BE THE EXCEPTION RATHER THAN THE RULE MARIO HERNANDEZ PRESIDENT OF THE SAN ANTONIO ECONOMIC DEVELOPMENT FOUNDATION INC SAYS DIRECT ADVERTISING HELPS ENHANCE THE CITY'S IMAGE BUT RARELY NETS IMMEDIATE RESULTS WHEN COMPANIES ACTUALLY GET READY TO FORM A LIST OF POSSIBLE LOCATIONS WHAT WORKS BEST SAY RECRUITED COMPANIES IS GOOD SERVICE ONCE THEY CALL A COMMUNITY FOR INFORMATION TEXAS CITIES SELLING THEMSELVES NOT JUST AGAINST COLORADO SPRINGS OR RENO BUT ALSO AGAINST EACH OTHER ARE ALLTOOAWARE THAT VICTORY MAY GO TO THE CHAMBER OF COMMERCE THAT JUMPS MORE QUICKLY TO SERVE A POTENTIAL CLIENT AUSTIN FOR INSTANCE DOES NO ADVERTISING NO DIRECT MAIL AND NO TELEMARKETING SAYS ANGELOS ANGELOU THE CITY'S VICE PRESIDENT OF ECONOMIC DEVELOPMENT WE JUST ANSWER THE PHONE WHEN IT RINGS HE SAYS BUT WHEN THE PHONE RINGS AUSTIN CHAMBER OF COMMERCE EMPLOYEES JUMP FROM RESEARCHING SUCCESSFUL SITES TO TALKING TO EMPLOYEES ABOUT RELOCATION AUSTIN SPARES NO EFFORT TO SHOW COMPANIES HOW HELPFUL THEY ARE AND WILL BE ONCE THEY RELOCATE AT SEVERAL COMPANIES' REQUEST MR ANGELOU'S OFFICE LOBBIED AMERICAN AIRLINES SUCCESSFULLY TO START UP DIRECT SERVICE BETWEEN AUSTIN AND TWO CALIFORNIA CITIES LOS ANGELES AND SAN JOSE ANOTHER EXAMPLE AUSTIN AND SAN ANTONIO WERE BOTH ON THE SHORT LIST FOR MICHAEL ANGELO'S GOURMET FOODS INC'S EXPANSION THE VISTA CALIF COMPANY WHICH WILL HAVE 200 WORKERS IN TEXAS BY EARLY NEXT YEAR CHOSE THE AUSTIN AREA PARTLY BECAUSE ECONOMICDEVELOPMENT OFFICIALS WENT TO GREATER LENGTHS TO ANSWER ITS INQUIRIES THAN SAN ANTONIO DID LARRY PARKER A BOARD MEMBER AT THE COMPANY SAYS WHEN I HAD SOME QUESTIONS THEY SET ME UP FOR LUNCH WITH AN OFFICIAL OF THE TEXAS DEPARTMENT OF COMMERCE ON A DAY'S NOTICE SOMETIMES THOUGH IT'S THE SMALL INTANGIBLE STUFF THAT CAN SEAL A DEAL JUST BEFORE APPLE COMPUTER INC DECIDED TO MOVE ITS ADMINISTRATION AND CUSTOMER SUPPORT FACILITY TO AUSTIN LAST YEAR THE CHAMBER OF COMMERCE FAXED THE COMPANY A HUMOROUS MEMO ADAPTED FROM A MOTOROLA INC ADVERTISEMENT GILBERT WITHOUT SULLIVAN STOP THE MUSIC BARNUM WITHOUT BAILEY QUIT CLOWNING APPLE WITHOUT AUSTIN DOESN'T COMPUTE JAMES O'NEILL SITE DIRECTOR FOR APPLE'S NEW AUSTIN CUSTOMER SUPPORT DIVISION SAYS WHILE APPLE PICKED AUSTIN MOSTLY FOR ITS TELECOMMUNICATIONS INFRASTRUCTURE AND THE HIGH QUALITY OF ITS WORK FORCE THE CHAMBER'S FOLLOWUP CONVEYED A FEELING OF WARMTH AND WELCOME THAT SET IT APART FROM OTHER CITIES SEE RELATED LETTERS TEXAS JOURNAL LETTERS TO THE EDITOR TALES OF RELOCATION VOLUME TWO WSJ NOV 17 1993 9310270124 YY93 MM11 9311160189 931116 SMALL STOCK FOCUS BOND PRICES WEAK TECHNOLOGY ISSUES CUT FIVEDAY RALLY IN SEDATE TRADING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SLIGHTLY LOWER BOND PRICES AND WEAK TECHNOLOGY ISSUES CRIMPED SMALLCOMPANY PRICES BREAKING FIVE STRAIGHT DAYS OF RALLYING IN A SEDATE SESSION LAST WEEK BOTH THE RUSSELL 2000 INDEX AND THE NASDAQ COMPOSITE INDEX CLIMBED IN EVERY SESSION ALTHOUGH BOTH FAILED TO TOP THEIR RECORD CLOSING HIGHS AMID CONTINUING CONCERNS ABOUT HIGHER INTEREST RATES AND THE NORTH AMERICAN FREE TRADE AGREEMENT THE NASDAQ COMPOSITE INDEX MEANWHILE TOPPLED 687 POINTS OR 088 TO FINISH AT 77245 DECLINING NASDAQ ISSUES BEAT OUT ADVANCERS 1720 TO 1290 ON NASDAQ NATIONAL MARKET VOLUME OF 220925170 SHARES DOWN FROM 254982400 SHARES ON FRIDAY TOTAL VOLUME FELL TO 271141000 SHARES FROM 307747100 SHARES FRIDAY IN THE TECH SECTOR FSI INTERNATIONAL INC CHASKA MINN FELL 1 1/4 TO 9 1/2 OLICOM BASED IN DENMARK RETREATED 1 1/2 TO 13 3/4 AND CIS TECHNOLOGIES INC TULSA OKLA SAGGED 3/8 TO 3 7/8 TRADERS SAID COMPONENTS OF THE GROUP SHOWED LOSSES ON SOME LIGHT PROFITTAKING AFTER A HUGE RUNUP LAST WEEK WE HAD SOME SLOPPINESS TODAY BUT THE SELLING LACKED CONVICTION SAID LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT SOUNDVIEW FINANCIAL CORP HE SAID WORRIES ABOUT RISING INTEREST RATES AND THE SHORTTERM EFFECT OF A NAFTA DEFEAT IN THE HOUSE OF REPRESENTATIVES TOMORROW HELPED KEEP VOLUME IN CHECK TODAY THE PRICE OF THE TREASURY'S LONG BOND FELL LESS THAN 1/8 POINT WHICH LEFT ITS YIELD UNCHANGED AT 615 THE BELLWETHER GOVERNMENT SECURITY RECOUPED MUCH OF AN EARLY LOSS AFTER THE RELEASE OF MORE POSITIVE ECONOMIC NEWS THE GOVERNMENT REPORTED INDUSTRIAL PRODUCTION LAST MONTH ROSE 08 UP FROM A FORECAST 06 GAIN BUT JITTERS OVER THE NAFTA VOTE ARE THE MAIN REASON MARKET PLAYERS REMAINED ON THE SIDELINES OBSERVERS SAID PEOPLE ARE CONCERNED ABOUT THE IMPLICATIONS OF NAFTA NOT PASSING SAID JIM BELLINI DIRECTOR OF EQUITY TRADING AT DAIN BOSWORTH INC THERE'S GROWING SKITTISHNESS AND UNEASINESS ABOUT THE PERCEPTION THAT IT NOT PASSING WOULD BE BAD LONGTERM FOR THE ECONOMY AMONG OTHER TECHNOLOGY ISSUES A DISAPPOINTING EARNINGS OUTLOOK CHIPPED 1 1/4 OFF AMERICAN SOFTWARE INC'S SHARE PRICE TO 6 1/2 THE ATLANTA COMPANY SAID IT ESTIMATES IT WILL POST A FISCAL SECONDQUARTER LOSS OF 10 CENTS TO 15 CENTS A SHARE IN THE CORRESPONDING QUARTER A YEAR AGO THE COMPANY EARNED FIVE CENTS A GOLDMAN SACHS RATING CUT TO MARKET PERFORMER FROM MODERATE PERFORMER HELPED SEND SERAGEN INC'S PRICE DOWN 1 1/4 TO 6 3/4 AS REPORTED FRIDAY THE HOPKINTON MASS DEVELOPER OF THERAPEUTIC PRODUCTS HAD A THIRDQUARTER LOSS OF 29 CENTS A SHARE COMPARED WITH 36 CENTS A YEAR EARLIER ALSO IN THE MEDICALRELATED GROUP MEDIMMUNE INC A GAITHERSBURG MDBASED THERAPEUTICS AND VACCINES CONCERN LOST 1 1/8 TO 27 3/8 THE COMPANY SAID A STUDY SHOWED THAT CYTOMEGALOVIRUS IMMUNE GLOBULIN REDUCED THE RATE OF SEVERE CYTOMEGALOVIRUSRELATED DISEASE IN ADULT AND YOUNG LIVER TRANSPLANT PATIENTS BY 50 MEDIMMUNE PRODUCES THE GLOBULIN UNDER THE NAME CYTOGAM MOLTEN METAL TECHNOLOGY INC ADDED 3 TO 24 1/4 THE WALTHAM MASS COMPANY AND MARTIN MARIETTA ENERGY SYSTEMS INC HAVE SIGNED AN AGREEMENT TO PURSUE CONSTRUCTION OF A SYSTEM FOR PROCESSING AND RECYCLING HAZARDOUS AND NONHAZARDOUS WASTES AT THE US DEPARTMENT OF ENERGY'S OAK RIDGE RESERVATION IN TENNESSEE ALTON ILLBASED ARGOSY GAMING CO GOT A 1POINT BOOST TO 24 1/2 AFTER NEWS THAT THE LOUISIANA RIVERBOAT GAMING COMMISSION VOTED TO CONFIRM THE PRELIMINARY CERTIFICATE OF APPROVAL THAT WAS AWARDED EARLIER THIS YEAR TO JAZZ ENTERPRISES AN ARGOSY PARTNER BUT LADY LUCK GAMING LOST 1 1/4 TO 14 AS IT PROBABLY WON'T BE ABLE TO SECURE A GAMBLING RIVERBOAT IN BATON ROUGE LA THE LAS VEGAS COMPANY HAD FILED A COMPLAINT WITH THE COMMISSION AND THE STATE ATTORNEY GENERAL'S OFFICE AGAINST JAZZ ALLEGING JAZZ VIOLATED THE RIVERBOAT GAMBLING STATUTE TIPHOOK PLC'S AMERICAN DEPOSITARY RECEIPTS LOST 1 1/8 TO 3 3/8 ON THE NEW YORK STOCK EXCHANGE THE BRITISH LEASER OF EQUIPMENT FOR TRANSPORTATION OF FREIGHT SAID IT IS IN BREACH OF BANKING CONVENANTS AND REQUIRES FURTHER SUPPORT FROM ITS MAIN BANKS TIPHOOK FORECAST AN UNSPECIFIED LOSS FOR THE SECOND HALF OF ITS CURRENT FINANCIAL YEAR AND SAID IT DOESN'T EXPECT TO PAY DIVIDENDS ON ITS RESULTS FOR THE CURRENT YEAR DIBRELL BROTHERS INC SLIPPED 4 TO 28 AFTER REPORTING THAT ITS FISCAL FIRSTQUARTER EARNINGS FELL TO 32 CENTS A SHARE FROM 64 CENTS A YEAR EARLIER THE DANVILLE VA COMPANY BUYS PROCESSES AND SELLS LEAF TOBACCO TO MAKERS OF CIGARETTES AND OTHER TOBACCO PRODUCTS US PAGING CORP ADDED 1 3/8 TO 6 THE WAYNE NJ PROVIDER OF PAGING SERVICES SAID IT HAS REACHED AN AGREEMENT WITH BIG BOARDTRADED MOTOROLA INC AND MACHINES BULL'S ZENITH DATA SYSTEMS SUBSIDIARY UNDER WHICH THE ZENITH UNIT'S ZLITE LINE OF SUBNOTEBOOK COMPUTERS WILL RECEIVE WIRELESS INFORMATION USING MOTOROLA'S NEWSCARD AND US PAGING'S SUPERCARRIER NETWORK TERMS WEREN'T DISCLOSED SHARES OF TPI ENTERPRISES INC ADVANCED 1 1/8 TO 11 3/8 AFTER A CNBC BROADCAST IN WHICH REPORTER DAN DORFMAN QUOTED AN ARKANSAS ANALYST'S BULLISH VIEWS ON THE COMPANY JEFFREY PUTTERMAN OF STEVENS INC LITTLE ROCK ARK REPORTEDLY ESTIMATED THAT THE WEST PALM BEACH FLA RESTAURANT OPERATOR WILL GET ABOUT 500 MILLION IN AN OUTOFCOURT SETTLEMENT OF ITS LAWSUIT AGAINST MCCAW CELLULAR COMMUNICATIONS INC NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 64 WHILE 38 ISSUES HIT NEW LOWS 9311160188 931116 CLINTON OFFICIALS EXERT LITTLE INFLUENCE ON ANTICRIME BILLS IN HOUSE AND SENATE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE AND HOUSE ARE MOVING ALONG SHARPLY DIFFERENT PATHS TOWARD ANTICRIME LEGISLATION MAKING IT DIFFICULT FOR PRESIDENT CLINTON TO STEER A BILL ONTO THE FAST TRACK MOREOVER WHEN THE PRESIDENT DOES GET A CRIME PACKAGE TO SIGN IT ISN'T LIKELY TO REFLECT MUCH INFLUENCE FROM HIS TOP CRIME FIGHTER ATTORNEY GENERAL JANET RENO SHE HASN'T BEEN MUCH OF A PLAYER SAID ONE CONGRESSIONAL STAFF MEMBER INVOLVED IN THE LEGISLATION THE JUSTICE DEPARTMENT HAS BEEN PRETTY MUCH OUT OF IT THE WHITE HOUSE HAS BEEN EVEN MORE ABSENT IN HER TRAVELS MS RENO HAS USED THE BULLY PULPIT OF HER OFFICE TO TOUT CRIMEPREVENTION STRATEGIES INCLUDING PRENATAL CARE DESPITE SOME DISCUSSIONS HELD BY MS RENO AND DEPARTMENT OFFICIALS WITH THE SENATE PREVENTION APPEARS TO HAVE GOTTEN SHORT SHRIFT IN THE AMENDED OMNIBUS CRIME BILL THAT THE SENATE WILL VOTE ON TODAY INSTEAD THE LEGISLATION IS LOADED WITH NEW PUNISHMENTS INCLUDING EXPANDED DEATH PENALTIES AND MANDATORY MINIMUM SENTENCES TWO PENALTY CATEGORIES THE ATTORNEY GENERAL DOESN'T FAVOR FOR EXAMPLE THE SENATE BILL WOULD STRIKE PROVISIONS REPEALING MANDATORY MINIMUM SENTENCES AND INCREASE SENTENCES FOR CRIMINALS WHO USED FIREARMS DURING CRIMES IMPOSE MANDATORY PRISON SENTENCES ON THOSE CONVICTED OF USING A GUN DURING A VIOLENT STATE CRIME OR AN OFFENSE INVOLVING DRUGS AND THE DEATH PENALTY FOR HOMICIDES WITH GUNS WHICH ARE GENERALLY STATE CRIMES NOW EVEN IF CAPITAL PUNISHMENT ISN'T LEGAL IN THE STATE WHERE THE MURDER OCCURRED MANDATE LIFE IMPRISONMENT FOR THOSE CONVICTED OF A THIRD VIOLENT STATE CRIME OR FEDERAL OFFENSE AS LONG AS EACH FELONY CARRIES A SENTENCE OF FIVE YEARS OR MORE IN SEPTEMBER THE JUSTICE DEPARTMENT PERSUADED SENATE DEMOCRATS TO DROP A PROVISION THAT WOULD HAVE ALLOWED THE DEATH PENALTY FOR DRUG KINGPINS EVEN IF THEY HADN'T BEEN DIRECTLY IMPLICATED IN A DEATH ABOUT A DOZEN PROVISIONS CALLING FOR NEW MANDATORY MINIMUM SENTENCES FOR REPEAT OFFENDERS AND THOSE WHO USE FIREARMS IN NARCOTIC OR VIOLENT CRIMES ALSO WERE DROPPED AT MS RENO'S SUGGESTION SINCE THEN MANDATORY MINIMUM SENTENCES HAVE BEEN ADDED TO THE SENATE LEGISLATION WITHOUT A PEEP FROM MS RENO AND SEN ALPHONSE D'AMATO R NY PLANS TO REINTRODUCE THE DRUGKINGPIN AMENDMENT WHEN THE SENATE RECONVENES WE REALLY HAVEN'T MADE ANY PUBLIC STATEMENTS ABOUT THE DEATH PENALTY AND SENTENCING PROVISIONS SAID JUSTICE DEPARTMENT SPOKESWOMAN JULIE ANBENDER BUT SHE SAID MS RENO HAS BEEN ACTIVE ON GUNCONTROL ISSUES A POINT THAT SOME HOUSE AND SENATE STAFF MEMBERS DISPUTE SOME MEASURES IN THE SENATE BILL ALLOW THE MEMBERS TO SOUND TOUGH ON CRIME BUT WILL LIKELY HAVE LITTLE IMPACT ON STREET CRIME DESPITE HUFFING AND PUFFING IN CONGRESS CRIME IS A LOCAL ISSUE FEDERAL OFFENSES MAKE UP ONLY 5 OF THE NATION'S CRIME NONETHELESS THE BILL INTRODUCED BY SEN JOSEPH BIDEN CHAIRMAN OF THE SENATE JUDICIARY COMMITTEE WOULD PROVIDE PROCEDURES NECESSARY TO CARRY OUT THE DEATH PENALTY IN HOMICIDES OF NUMEROUS FEDERAL OFFICIALS INCLUDING FEDERAL REAL ESTATE INSPECTORS CLAIMS INSPECTORS GAME WARDENS AND POULTRY INSPECTORS ABOUT 50 NEW DEATH PENALTIES ARE PROVIDED FOR IN THE SENATE'S LEGISLATION IT ALSO WOULD PERMIT THE GOVERNMENT TO USE CLASSIFIED INFORMATION TO DEPORT SUSPECTED TERRORISTS WHO WOULDN'T BE TOLD WHAT INFORMATION WAS USED AGAINST THEM MEANWHILE RATHER THAN PUSHING ONE BIG CRIME BILL THE HOUSE HAS PASSED AND IS CONSIDERING SEVERAL SEPARATE MEASURES UNLIKE THE SENATE BILL THE FOCUS ISN'T ON PUNISHMENT MEASURES THAT THE HOUSE HAS APPROVED WOULD AUTHORIZE FUNDING FOR INMATE DRUG TREATMENT AND PROGRAMS TO REDUCE YOUTHGANG ACTIVITIES AND DRUG USE THE HOUSE APPROACH TO ANTICRIME LEGISLATION IS MORE IN KEEPING WITH THE VIEWS ESPOUSED BY MS RENO YET EVEN HERE HER INFLUENCE HAS BEEN MINIMAL IT WAS CONGRESSIONAL BLACK CAUCUS MEMBERS AND FRESHMAN LEGISLATORS WHO ENCOURAGED REP JACK BROOKS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE TO BREAK UP THE HOUSE'S OMNIBUS CRIME BILL AND DROP HARSH PUNISHMENT PROVISIONS ONE AREA THAT IS A CLEAR PRIORITY FOR PRESIDENT CLINTON IS FULFILLING HIS CAMPAIGN PROMISE TO PUT MORE COPS ON THE STREET THE SENATE WOULD FUND 100000 ADDITIONAL OFFICERS THE HOUSE 50000 AS POPULAR AS THIS EFFORT IS GENERALLY SOME POLICE ASSOCIATION OFFICIALS ARE SKEPTICAL THE FEDERAL FUNDING FOR ADDITIONAL COPS AUTHORIZED BY THE MEASURES MUST BE MATCHED BY LOCAL GOVERNMENTS THAT ARE ALREADY CASHPOOR THE PROBLEM ISN'T A LACK OF RECRUITS BUT A LACK OF MONEY TO PAY THEM IN ADDITION THE LIMITED FEDERAL FUNDING WOULD RUN OUT AFTER A FEW YEARS LEAVING THE LOCALITIES HOLDING THE TAB THE DOWNSIZING OF THE MILITARY HAS GIVEN US THOUSANDS OF GOOD APPLICANTS SAID BUD MEEKS EXECUTIVE DIRECTOR OF THE NATIONAL SHERIFFS ASSOCIATION BUT IT TAKES MONEY TO TAKE ALL THESE PEOPLE ON BOARD WE DON'T HAVE THE DOLLARS FOR THEM HE SAID THE PROBLEM ISN'T JUST SALARIES WHICH THE FEDERAL FUNDING WOULD PARTLY COVER MR MEEKS SAID IF AN ADDITIONAL 100000 COPS MAKE JUST ONE ARREST EACH WEEK THE CRIMINAL JUSTICE SYSTEM WOULD EXPLODE UNLESS FUNDING ALSO PROVIDED FOR PROSECUTORS AND PROBATION OFFICERS HE SAID THERE ARE PROVISIONS FOR ADDITIONAL PRISON SPACE MR MEEKS SAID BUT PLANNING AND CONSTRUCTION TAKE SEVERAL YEARS WHILE ADDITIONAL POLICE OFFICERS COULD BE ON THE STREETS IN SIX MONTHS MOREOVER AN INCREASE IN HIRING DOESN'T NECESSARILY LOWER CRIME JUSTICE DEPARTMENT STATISTICS SHOW THAT WASHINGTON HAS FAR MORE LOCALLY HIRED OFFICERS 74 PER 10000 RESIDENTS THAN ANY OTHER US CITY THE SECONDHIGHEST RATE IS 50 PER 10000 HIGHLAND PARK MICH RESIDENTS YET VIOLENCE IS SO BAD IN THE NATION'S CAPITAL THAT MAYOR SHARON PRATT KELLY RECENTLY ASKED PRESIDENT CLINTON FOR AUTHORITY TO CALL OUT THE NATIONAL GUARD THE REQUEST WAS DENIED 9311160187 931116 MARKETING & MEDIA ADVERTISING ONE AGENCY BUYS ITS OWN LINE ADVERTISING ITSELF ON TELEVISION BY KEVIN GOLDMAN IN A NEW TELEVISION COMMERCIAL A COMEDIAN IN A SEEDY BAR IS DEVELOPING A BAD CASE OF FLOP SWEAT BUT THE LONE CUSTOMER IN THE AUDIENCE SEEMS TO BE APPLAUDING INSTEAD OF SIGNIFYING APPROVAL FOR THE SHOW HOWEVER HE IS SLAPPING THE SIDE OF A BOTTLE TRYING TO GET THE KETCHUP TO OOZE NO THE SPOT ISN'T FOR HEINZ THE PRODUCT USUALLY ASSOCIATED WITH SUCH FRUSTRATION OVER GRAVITY'S LACK OF FORCE ON A CONDIMENT RATHER IT'S A PLUG FOR THE AD STORE A SMALL NEW YORK AGENCY STARTED BY A FORMER EXECUTIVE AT AC&R AND INTERPUBLIC GROUP'S MCCANNERICKSON THE AD CONCLUDES WITH THE PITCH GREAT AD WHO DID IT THE AD STORE IN WHAT SOME ON MADISON AVENUE BELIEVE IS A DESPERATE PLOY TO ATTRACT NEW BUSINESS A NUMBER OF SMALL AGENCIES ARE STARTING TO ADVERTISE THEMSELVES IN CONSUMER PUBLICATIONS AND EVEN ON TELEVISION PROPONENTS OF THE STRATEGY CONTEND THAT SUCH ADS HELP THEM GET NOTICED BY MORE POTENTIAL CLIENTS THAN MERELY ADVERTISING IN TRADE MAGAZINES IT IS THE GREAT EQUALIZER SAYS JERRY DELLA FEMINA WHO HEADS HIS OWN AGENCY JERRY INC WITH CLIENTS SUCH AS NEWSWEEK AND PUDGIE'S CHICKEN NO ONE LOOKS AT AN AD THAT AN AGENCY PLACES FOR ITSELF AND ASKS THAT AGENCY'S BILLINGS OR HOW BIG THAT AGENCY IS AFTER MR DELLA FEMINA WINS AN ACCOUNT HE PLACES NEWSPAPER ADS ANNOUNCING THE NEW BUSINESS TO DATE ONLY THE AD STORE IS DEFINITELY PLACING ADS ON TELEVISION BEGINNING AS EARLY AS NEXT MONTH ITS COMMERCIALS WILL BE SEEN ON CNN CNBC AND MTV SAYS PAUL CAPPELLI THE FORMER AC&R AND MCCANN EXECUTIVE WHO IS PRESIDENT OF THE NEWLY FORMED AGENCY GOLDSMITH/JEFFREY CHAIRMAN GARY GOLDSMITH SAYS HIS AD AGENCY IS WORKING ON A PROMOTIONAL SPOT THAT MAY RUN AS A COMMERCIAL OR BE MAILED AS A VIDEOTAPE PITCH TO PROSPECTIVE CLIENTS WE'RE NOT SURE HOW WE'RE GOING TO USE IT YET HE SAYS WE'RE CONSIDERING ADVERTISING ON TELEVISION HE ADDS THAT THERE IS NO DOWNSIDE OTHER THAN THE EXPENSE ANDY BERLIN CHAIRMAN OF OMNICOM GROUP'S BERLIN WRIGHT & CAMERON SAYS HIS AGENCY IS PLANNING TO RUN A SERIES OF 12 ADVERTISEMENTS IN NEWSPAPERS NOT JUST TO SOLICIT NEW ACCOUNTS BUT ALSO TO PUBLICIZE THE AGENCY'S BUSINESS PHILOSOPHY EVERYONE WATCHED THE BANG OF OUR FORMATION SAYS MR BERLIN BUT THERE HASN'T BEEN MUCH TALK ABOUT WHAT WE THINK OR WHAT WE WILL BE DOING ADVERTISING DIRECTLY TO THE AMERICAN BUSINESS COMMUNITY IS THE BEST WAY TO GET THE MESSAGE ACROSS EACH AD WILL BE SIGNED WITH THE SLOGAN ADVERTISING ANALYSIS & IDEA THERE WILL EVEN BE A TELEPHONE NUMBER ENCOURAGING PEOPLE TO FAX THE AGENCY OPINIONS ON THE TOPIC IN EACH AD BERLIN WRIGHT WON'T BUY TIME ON TELEVISION UNTIL THERE IS A PROGRAM THAT DELIVERS A HIGH INDEX OF ADVERTISERS I DON'T KNOW WHY SOMEONE WOULD WANT TO PAY FOR SUCH A MASS AUDIENCE BUT MR CAPPELLI AT THE AD STORE SAYS BY RUNNING HIS COMMERCIALS ON TELEVISION HE HOPES TO APPEAL TO A WHOLE NEW LEVEL OF ADVERTISER I'M GOING AFTER FIRST TIME ADVERTISERS AND SMALLER TO MIDSIZE BUSINESSES THAT DON'T HAVE THE BUDGET TO HIRE A FULLTIME AD AGENCY OR EVEN THE NEED FOR ONE MR CAPPELLI'S ADS ALSO ARE EXPECTED TO APPEAR NEXT MONTH IN KIOSKS NEAR THE AD STORE'S OFFICES IN MIDTOWN MANHATTAN THE NOTION OF AN ADVERTISING AGENCY ADVERTISING ITSELF TO A BROAD AUDIENCE ISN'T ENTIRELY NEW THE AGENCY CUNNINGHAM & WALSH WHICH WAS ACQUIRED IN 1986 BY AYER USED TO RUN ADS IN CONSUMER PUBLICATIONS PLUGGING THE MAN FROM CUNNINGHAM & WALSH WHO WOULD BE OUT OF THE OFFICE ONE WEEK EVERY MONTH VISITING A DEPARTMENT STORE OR SUPERMARKET TO BECOME A BETTER JUDGE OF CONSUMERS' NEEDS AND AT LEAST ONE AGENCY BEGAN SIGNING ITS ADVERTISEMENTS CREATED FOR OTHER PEOPLE A FEW YEARS AGO THE PURPOSE IS TO PUBLICLY TAKE RESPONSIBILITY FOR THE ADS SAYS PETER ARNELL CHAIRMAN OF ARNELL ASSOCIATES WHICH SIGNS ADS FOR SUCH CLIENTS AS DONNA KARAN THE WORK SHOULD BE SEEN AS A COLLABORATION OF COURSE SOME CLIENTS MAY NOT WANT TO SHARE THE STAGE WITH THEIR AD AGENCIES ESPECIALLY SINCE IT IS THE CLIENT PAYING THE BILL THAT'S ONE REASON OMNICOM'S DDB NEEDHAM ABANDONED ITS EFFORTS TO SIGN ADS A FEW YEARS AGO CLIENTS RESISTED THE MOVE SOMETIMES ADS PROMOTING AN AGENCY CAN BACKFIRE TWO WEEKS AGO INTERPUBLIC GROUP'S LINTASNEW YORK PLACED A FULLPAGE AD IN THE MIAMI HERALD TARGETING BURGER KING THE AD AN OPEN LETTER TO THE MIAMIBASED FASTFOOD CHAIN SAID THAT EVEN THOUGH LINTAS IS ON A LOSING STREAK LATELY WITH DIET COKE IBM'S PERSONAL COMPUTER ACCOUNT AND MOLSON BEER AMONG THE DEFECTIONS BURGER KING SHOULD CONSIDER THE AGENCY FOR ITS 120 MILLION ACCOUNT WHICH IS IN REVIEW MCDONALD'S BECAME AWARE OF THE AD AND TOOK EXCEPTION TO IT SAYS WILLIAM T NICHOLSON EXECUTIVE VICE PRESIDENT OF LINTAS THE CONNECTION A PIECE OF MCDONALD'S COOP ADVERTISING IS DONE BY LINTAS SUBSIDIARY FAHLGREN MARTIN THE CONSEQUENCE LINTAS PULLED OUT OF THE PITCH MR DELLA FEMINA PREDICTS MORE SMALL AGENCIES WILL PRACTICE WHAT THEY PREACH ADVERTISING IS THE BEST WAY TO REACH PEOPLE BUT LARGER AGENCIES DISAGREE OVER THE DEGREE THAT AD AGENCIES WILL SHELL OUT MONEY TO ADVERTISE THEMSELVES SAYS ONE EXECUTIVE AT A LARGE AGENCY THE BUSINESS NOW IS MORE ABOUT SURVIVAL THAN ABOUT SELFPROMOTION THE ATTENTION WILL BE FOCUSED MORE ON RETAINING BUSINESS THAN CREATING ADS FOR OURSELVES MARY ALICE WILLIAMS THE NBC NEWS CORRESPONDENT WHO RESIGNED LAST MONTH WILL SOON BE SEEN IN COMMERCIALS FOR NYNEX CORP THE VETERAN REPORTER WHO WAS ALSO A VICE PRESIDENT AND ANCHOR FOR CNN A UNIT OF TURNER BROADCASTING SYSTEM INC UNTIL HER RESIGNATION IN 1989 EMPHASIZES HER ROLE WITH THE REGIONAL PHONE COMPANY WILL FAR EXCEED THAT OF MERE SPOKESWOMAN I WILL BE ON CAMERA SHE SAYS IN A TELEPHONE INTERVIEW FROM HER HOME IN NEW JERSEY BUT IT IS IMPORTANT FOR ME TO SAY THAT I AM WRITING ALL THE COPY AND I AM BEING USED FOR A FAIRLY BROAD MARKETING FUNCTION SHE AND NYNEX DECLINED TO BE SPECIFIC ABOUT WHAT HER EXACT ROLE WILL BE MS WILLIAMS SAID THAT AFTER SHE RESIGNED FROM NBC NEWS SHE RECEIVED NUMEROUS OFFERS TO APPEAR IN COMMERCIALS INCLUDING ONE FOR PANTY HOSE MS WILLIAMS LEFT NBC NEWS A UNIT OF GENERAL ELECTRIC CO AND FORMED HER OWN PRODUCTION COMPANY ICE BLUE PRODUCTIONS IT HAS BEEN LESS THAN A YEAR SINCE TRANS WORLD AIRLINES LAST MOVED ITS ESTIMATED 40 MILLION ACCOUNT BUT THE CLIENT IS OUT SHOPPING FOR AN AD AGENCY AGAIN THIS TIME AD INDUSTRY EXECUTIVES SAID TWA HAS ALREADY HAD A MEETING WITH AT LEAST ONE AGENCY MCKINNEY & SILVER OF RALEIGH NC GIVING IT THE POSSIBLE INSIDE TRACK TWO AGENCIES THAT RECENTLY LOST AIRLINE ACCOUNTS ALSO COULD BE IN LINE FOR THE BUSINESS WELLS RICH GREENE BDDP THE FORMER AGENCY OF CONTINENTAL AIRLINES AND D'ARCY MASIUS BENTON & BOWLES FORMERLY WITH QANTAS AIRWAYS A TWA SPOKESMAN SAID THERE IS NO REVIEW UNDER WAY AT THIS TIME AND DECLINED TO COMMENT FURTHER AFTER TRADE MAGAZINES FIRST REPORTED THE SEARCH TOP EXECUTIVES AT TWA'S CURRENT AGENCY SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES OFFERED EMPLOYEES LITTLE REASSURANCE IN A MEMO ISSUED YESTERDAY NOTING THAT TWA CHAIRMAN WILLIAM HOWARD HAS BEEN INSPECTING ALL OPERATIONS AT THE AIRLINE WHICH RECENTLY EMERGED FROM BANKRUPTCYCOURT PROTECTION WE SALUTE ALL OF YOU WHO HAVE WORKED TIRELESSLY ON THE TWA BUSINESS AND THE SUCCESS WE HAVE SHARED WITH THE AIRLINE OVER THE PAST YEAR THE MEMO SAID DEUTSCH LVMH MOET HENNESSY LOUIS VUITTON FRENCH PARENT OF LUXURY BRANDS LOUIS VUITTON CHRISTIAN DIOR AND GIVENCHY CONSOLIDATED AN ESTIMATED 10 MILLION IN NORTH AMERICAN MEDIA PLANNING AND BUYING AT DEUTSCH/DWORIN NEW YORK ENDING A REVIEW THAT ALSO INCLUDED SEVERAL INDEPENDENT MEDIA COMPANIES WHO'S NEWS CHIAT/DAY NAMED IRA MATATHIA THE 42YEAROLD HEAD OF ITS TORONTO UNIT TO THE NEW POST OF PRESIDENT OF CHIAT/DAY EAST FORMED AS PART OF A RESTRUCTURING OF ITS TROUBLED NEW YORK OPERATIONS DOUG WATSON ALSO 42 WHO HAD BEEN CHIEF EXECUTIVE AND PRESIDENT OF CHIAT/DAY'S NEW YORK OFFICE WAS NAMED CREATIVE DIRECTOR OF A NEW INFOMERCIAL AND NEW MEDIA UNIT AT THE AGENCY 9311160186 931116 INTERNATIONAL BRITISH AIRWAYS POSTS 27 RISE IN PRETAX PROFIT BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BUOYED BY A RECOVERY IN THE UNITED KINGDOM AND FAVORABLE EXCHANGE RATES BRITISH AIRWAYS PLC REPORTED THAT PRETAX PROFIT FOR ITS SECOND QUARTER ENDED SEPT 30 SOARED 27 TO 172 MILLION 257 MILLION FROM 136 MILLION FOR THE FIRST HALF PRETAX PROFIT ROSE A MORE MODEST 35 TO 235 MILLION FROM 227 MILLION A YEAR EARLIER THE COMPANY BOOSTED THE INTERIM DIVIDEND 85 TO 318 PENCE 475 CENTS A SHARE FROM 293 PENCE A YEAR EARLIER BRITISH AIRWAYS WARNED INVESTORS AGAINST EXCESSIVE ENTHUSIASM AS THE COMPANY HEADS INTO THE USUALLY SLOW FISCAL SECOND HALF TRADING CONDITIONS OVERALL THIS WINTER WILL REMAIN DIFFICULT AS A RESULT OF OVERCAPACITY IN THE INDUSTRY SIR COLIN MARSHALL CHAIRMAN SAID IN FACT THE COMPANY NOTED THAT PROFIT PER PASSENGER THE SOCALLED YIELD WOULD HAVE FALLEN IF NOT FOR THE FAVORABLE EXCHANGE RATES IN PARTICULAR THE WEAK BRITISH POUND THOSE EXCHANGE RATES COMBINED WITH A MODERATE RISE IN THE NUMBER OF HIGHPAYING PASSENGERS IN SEPTEMBER LED TO A 49 RISE IN PASSENGER YIELD FOR THE FIRST HALF STILL ANALYSTS FORECAST BRITISH AIRWAYS WILL EARN BETWEEN 300 MILLION AND 340 MILLION FOR THE FULL YEAR THAT COMPARES WITH 185 MILLION IN THE PREVIOUS FISCAL YEAR THE LATEST RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS WE ARE AT THE BOTTOM OF THE CYCLE AND THINGS ARE NOW ON THE WAY UP SAID JAMES HALSTEAD OF SWISS BANK CORP IN THE FISCAL FIRST HALF BRITISH AIRWAYS ENJOYED AN 11 RISE IN PASSENGER TRAFFIC MEASURED IN TERMS OF THE NUMBER OF KILOMETERS EACH PASSENGER WAS FLOWN THE TOTAL NUMBER OF PASSENGERS ROSE 12 TO 154 MILLION ON A FULLY DILUTED BASIS PERSHARE EARNINGS SLID TO 204 PENCE FOR THE FISCAL FIRST HALF FROM 205 PENCE A YEAR EARLIER THE DECLINE RESULTED FROM THE DILUTION CAUSED BY A RIGHTS ISSUE IN MAY BUT THE RIGHTS ISSUE HELPED BRITISH AIRWAYS BOOST ITS CAPITAL AND RESERVES AT THE END OF SEPTEMBER TO 21 BILLION FROM 17 BILLION A YEAR EARLIER 9311160184 931116 INTERNATIONAL SPAIN'S PPI ROSE IN SEPTEMBER MADRID SPAIN'S PRODUCER PRICE INDEX ROSE 3 IN SEPTEMBER FROM A YEAR EARLIER THE NATIONAL STATISTICS INSTITUTE SAID THE INDEX MEASURED ON A 100 EQUALS 1990 BASIS ROSE 26 IN THE FIRST NINE MONTHS OF 1993 COMPARED WITH A YEAR EARLIER AND WAS 1069 AT THE END OF SEPTEMBER PRICES OF CONSUMER GOODS POSTED THE BIGGEST YEARONYEAR INCREASE SURGING 42 FROM SEPTEMBER 1992 9311160183 931116 PRAXAIR'S CRYOGENIC OPERATIONS DANBURY CONN PRAXAIR INC SAID IT WILL DISCONTINUE DIRECT FABRICATION OF CRYOGENIC EQUIPMENT AT ITS TONAWANDA NY FACTORY BY MARCH 31 THE INDUSTRIAL GAS SUPPLIER SAID ABOUT 50 POSITIONS WILL BE ELIMINATED BY THE MOVE THE COMPANY'S TONAWANDA FACILITIES WILL CONTINUE TO EMPLOY ROUGHLY 1000 PEOPLE IN OTHER OPERATIONS 9311160182 931116 SPECTRUM INFORMATION PURCHASE MANHASSET NY SPECTRUM INFORMATION TECHNOLOGIES INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE CPU INC AN INFORMATIONTECHNOLOGYSOFTWARE COMPANY CPU BASED IN ROCHESTER NY HAS ABOUT 18 MILLION IN ANNUAL REVENUE AND IS PROFITABLE SPECTRUM SAID CPU WILL FIT IN ITS EXPANSION IN THE WIRELESSTECHNOLOGY INDUSTRY TERMS WEREN'T DISCLOSED 9311160181 931116 INTERNATIONAL JAPANESE ELECTRONICS FIRMS ARE RAIDED BY AGENCY ON SUSPICION OF BIDRIGGING BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S FAIR TRADE COMMISSION LONG CRITICIZED FOR BEING A TOOTHLESS WATCHDOG RAIDED THE OFFICES OF SOME OF THE NATION'S BIGGEST ELECTRONICS COMPANIES MONDAY ON SUSPICION OF BIDRIGGING THE MOVE IS THE LATEST IN THE COMMISSION'S APPARENT EFFORT TO SECURE A GREATER SHARE OF THE REGULATORY AND LAWENFORCEMENT RESPONSIBILITY AMID AN AMBITIOUS GOVERNMENTLED MOVEMENT TO REFORM JAPAN'S ECONOMY THE COMMISSION JAPAN'S REGULATORY EQUIVALENT OF THE US JUSTICE DEPARTMENT'S ANTITRUST DIVISION SAID IT RAIDED THE COMPANIES IN SEARCH OF EVIDENCE OF ALLEGED COLLUSION ON BIDDING FOR ELECTRONIC BILLBOARDS IN SPORTS STADIUMS COMMISSION OFFICIALS RAIDED THE OFFICES OF FUJITSU LTD SONY CORP MATSUSHITA ELECTRIC INDUSTRIAL CO TOSHIBA CORP AND MITSUBISHI ELECTRIC CORP IT ALSO RAIDED COMPANY AFFILIATES SPOKESMEN FOR THE COMPANIES CONFIRMED THAT COMMISSION OFFICIALS HAD PAID A VISIT BUT DECLINED TO COMMENT FURTHER THE RAIDS FOLLOW A SERIES OF COMMISSION INVESTIGATIONS INTO BUSINESS PRACTICES SUSPECTED OF VIOLATING JAPANESE ANTITRUST LAWS IN RECENT MONTHS THE COMMISSION HAS CONDUCTED INVESTIGATIONS INTO INDUSTRIES RANGING FROM CONSTRUCTION TO COSMETICS US OFFICIALS LONG HAVE COMPLAINED THAT CLOSE TIES BETWEEN JAPANESE BUSINESSES AND GOVERNMENT OFFICIALS EFFECTIVELY SHUT OUT FOREIGN COMPETITION IN BIDDING FOR PUBLIC WORKS PROJECTS WHILE WELCOMING THE COMMISSION'S HIGHER PROFILE IN RECENT MONTHS THE US OFFICIALS SAY RAIDS ALONE WON'T CHANGE THE SYSTEM SO LONG AS THE COMMISSION IS HAMPERED BY A LACK OF DISCIPLINARY POWERS BEYOND CHARGING COMPANIES MODEST FINES IT'S NOT SO MUCH THAT THIS RAID MEANS ANYTHING AS WHAT HAPPENS NEXT SAID ONE US OFFICIAL IF THE COMPANIES ARE ALL HIT WITH THE EQUIVALENT OF A 20 FINE AND A WARNING NOT TO DO IT AGAIN AFTER THEY'VE MADE 100 MILLION FROM WHAT THEY'VE DONE IT'S ALL KIND OF A JOKE JAPANESE TELEVISION REPORTS SAID MONDAY THAT EARLIER COMMISSION ATTEMPTS TO RAISE THE AMOUNT IT CAN FINE FOR BIDRIGGING WERE BLOCKED BY JAPAN'S LIBERAL DEMOCRATIC PARTY THE PROBUSINESS LIBERAL DEMOCRATS RULED JAPAN FOR NEARLY FOUR DECADES BEFORE A COALITION OF SMALLER PARTIES OVERTHREW THEM IN ELECTIONS THIS YEAR THE NEW GOVERNMENT LED BY PRIME MINISTER MORIHIRO HOSOKAWA HAS PROMISED TO OPEN UP JAPAN'S MURKY PUBLICWORKS BIDDING PROCESS AS PART OF A LARGESCALE REFORM PROGRAM DAVID P HAMILTON CONTRIBUTED TO THIS ARTICLE 9311160180 931116 WHO'S NEWS VINDICATOR INC VINDICATOR INC TAMPA FLA LM BUDDY BLAIN 66 YEARS OLD WAS NAMED INTERIM PRESIDENT AND CHIEF OPERATING OFFICER OF THIS FOOD IRRADIATION FIRM MR BLAIN A TAMPA ATTORNEY AND COMPANY BOARD MEMBER SUCCEEDS SAM WHITNEY 70 WHO CONTINUES TO SERVE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR BLAIN WILL HOLD THE POST FOR SIX MONTHS TO A YEAR WHILE SEEKING A REPLACEMENT 9311160179 931116 WHO'S NEWS FINDLAY INDUSTRIES INC FINDLAY INDUSTRIES INC FINDLAY OHIO CARL E CODE JR 53 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS AUTOMOTIVE SUPPLIER MR CODE SUCCEEDS PHILIP D GARDNER THE 76YEAROLD FOUNDER OF THE COMPANY WHO WILL RETAIN THE POSITIONS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR CODE WAS PRESIDENT AND CHIEF OPERATING OFFICER OF TAKATA INC ALSO AN AUTOMOTIVE SUPPLIER 9311160178 931116 WHO'S NEWS CLEAN HARBORS INC CLEAN HARBORS INC QUINCY MASS CLYDE D KEATON VICE CHAIRMAN AND COCHIEF EXECUTIVE OFFICER HAS RESIGNED AND HIS POSITIONS HAVE BEEN ELIMINATED SAID THE ENVIRONMENTAL CLEANUP COMPANY IT SAID MR KEATON'S RESIGNATION WAS BY MUTUAL AGREEMENT AND WAS PART OF AN EFFORT TO CUT COSTS AND IMPROVE PRODUCTIVITY MR KEATON 51 YEARS OLD MADE A SIGNIFICANT CONTRIBUTION TO CLEAN HARBORS SAID ALAN MCKIM CHAIRMAN AND CHIEF EXECUTIVE 9311160177 931116 INTERNATIONAL FIAT TO REGROUP WITH AGNELLI AS CHAIRMAN BY MAUREEN KLINE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN FIAT SPA SHAREHOLDERS VOTED TO REORGANIZE AND CONSOLIDATE THE BOARD THE CHANGES INCLUDE A COMMITMENT BY CHAIRMAN GIANNI AGNELLI TO REMAIN UNTIL MID1996 AND A SHIFT OF HIS YOUNGER BROTHER UMBERTO TO THE HELM OF HOLDING COMPANY IFI SPA MEANWHILE THE ITALIAN CAR MAKER SAID ITS RIGHTS ISSUE WHICH CLOSES THIS WEEK IS EXPECTED TO BRING IN FIVE TRILLION LIRE 301 BILLION IN SUPPORT OF A HEAVY INVESTMENT PROGRAM WITH THE MANAGEMENT QUESTION SETTLED THE RIGHTS ISSUE MOVING ALONG AND THE NEW PUNTO MODEL INTRODUCED ANALYSTS SAID THE AUTO MAKER IS BETTER PREPARED TO WEATHER THE RECESSION IN EUROPE IT'S IN GOOD SHAPE WITH A RIGHTS ISSUE OF THIS SIZE BEHIND IT AND A 30 PRICE ADVANTAGE OVER ITS COMPETITORS FROM LIRA DEVALUATION SAID FRANCESCA LOLLI AN ANALYST WITH HOARE GOVETT INTERNATIONAL SECURITY LTD IN LONDON I SEE THE COMPANY BREAKING EVEN IN 1995 SHAREHOLDERS NAMED 11 BOARD MEMBERS INCLUDING GIANNI AGNELLI HIS NEPHEW GIOVANNI ALBERTO AGNELLI CESARE ROMITI CHIEF EXECUTIVE OFFICER ULRICH WEISS DEPUTY CHAIRMAN OF DEUTSCHE BANK PIERRE SUARD OF ALCATEL ALSTHOM EUGENIO COPPOLA DI CANZANO CHAIRMAN OF ASSICURAZIONI GENERALI AND GIANPIERO PESENTI A BOARD MEMBER OF MEDIOBANCA SPA THE STOCK MARKET APPLAUDED THE 72YEAROLD GIANNI AGNELLI'S DECISION TO REMAIN CHAIRMAN THE DECISION SHOWS AGNELLI IS STILL THE BODY AND SOUL OF FIAT AND THE MARKET EMPHASIZED THIS SAID LEONARDO LEONI OF MERCATI FINANZIARI SIM SPA IN MILAN YESTERDAY IN MILAN FIAT WAS MUCH STRONGER IN EARLY TRADING BUT FINISHED SLIGHTLY BETTER AT 3672 LIRE COMPARED WITH FRIDAY'S 3640 LIRE IN A FALLING MARKET ANALYSTS ARE OPTIMISTIC ABOUT THE PUNTO LAUNCHED LAST WEEK ONE ANALYST WHO TEST DROVE THE MODEL SAID IT'S A HUGE JUMP AHEAD FOR FIAT IT'S MUCH BETTER THAN THE COMPETITION AND IT'S WELLPRICED FIAT WHICH DECIDED TO SPEND EIGHT TRILLION LIRE THIS YEAR IN INVESTMENTS AND RESEARCH AND DEVELOPMENT DESPITE THE INDUSTRY SLUMP WILL FOLLOW THE PUNTO WITH OTHER NEW MODELS IN THE NEXT FEW YEARS BUT ANALYSTS AGREED IT WON'T BE EASY TO REGAIN MARKET SHARE AND IMPROVE SALES FIAT WILL BE ONE OF THE FOUR OR FIVE AUTO MAKERS TO SURVIVE IN EUROPE BUT THE FAT PROFITS OF PAST YEARS WON'T BE SEEN AGAIN MR LEONI SAID 9311160176 931116 MID ATLANTIC MEDICAL SERVICES ROCKVILLE MD MID ATLANTIC MEDICAL SERVICES INC SAID IT WILL RESUME MARKETING ITS MAIN HEALTHMAINTENANCE ORGANIZATION TO MARYLAND MEDICAID RECIPIENTS MARKETING WAS HALTED IN THE STATE FOLLOWING A DISPUTE WITH THE MARYLAND DEPARTMENT OF HEALTH AND MENTAL HYGIENE STATE OFFICIALS QUESTIONED WHETHER THE COMPANY WAS ADEQUATELY ADVISING MEDICAID PATIENTS IN MARYLAND OF WHICH PHYSICIANS WOULD BE TREATING THEM UNDER THE PLAN MID ATLANTIC SAID IT HAS REVISED MARKETING MATERIALS AND HAS THE SITUATION WELL IN HAND 9311160175 931116 WHO'S NEWS NEW ENGLAND BUSINESS SERVICE INC NEW ENGLAND BUSINESS SERVICE INC GROTON MASS WILLIAM C LOWE 52 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE JAN 3 MR LOWE A COMPANY DIRECTOR WILL SUCCEED BARTLEY H CALDER 53 WHO RESIGNED FROM THOSE POSITIONS LAST THURSDAY TO PURSUE OTHER BUSINESS INTERESTS THE MAKER OF BUSINESS FORMS SAID MR CALDER ALSO RESIGNED AS A DIRECTOR MR CALDER WASN'T IMMEDIATELY AVAILABLE FOR COMMENT MR LOWE WAS MOST RECENTLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GULFSTREAM AEROSPACE CORP POSTS FROM WHICH HE RESIGNED LAST WEEK NEW ENGLAND SAID 9311160174 931116 TECHNOLOGY AMERICAN DENTAL ACQUISITION TROY MICH AMERICAN DENTAL TECHNOLOGIES INC SAID IT WILL ACQUIRE PRIVATELY HELD INCISIVE TECHNOLOGIES INC OF SAN CARLOS CALIF IN A STOCK SWAP AMERICAN DENTAL SAID IT WILL EXCHANGE 1535000 SHARES OF ITS COMMON STOCK FOR ALL OF INCISIVE'S COMMON STOCK AND WILL EXTEND OPTIONS TO PURCHASE AN ADDITIONAL 86533 SHARES 9311160173 931116 NORTH AND SOUTH CAN'T EVEN AGREE ON ECONOMIC FORECAST FOR CALIFORNIA BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CALL THEM THE CASTLE OF HOPE AND THE PALACE OF DOOM AS NORTHERN CALIFORNIA AND SOUTHERN CALIFORNIA DEVELOP DIVERGING CHARACTERS SO ARE NORTH AND SOUTH PRODUCING ECONOMIC INTERPRETERS WITH VERY DIFFERENT VIEWS OF THE STATE'S FUTURE ON THE HOPEFUL SIDE IS THE CENTER FOR THE CONTINUING STUDY OF THE CALIFORNIA ECONOMY IN THE BAY AREA TOWN OF PALO ALTO FAR GLOOMIER ASSESSMENTS EMERGE FROM THE UCLA BUSINESS FORECASTING PROJECT AN ARM OF THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES ECONOMISTS AT THE TWO INSTITUTIONS HAVE FOR YEARS CARRIED ON A BRITTLE DEBATE OVER THE KEY QUESTION OF CALIFORNIA'S FUTURE HAS THE STATE'S ECONOMY CHANGED FOREVER OR IS IT CAUGHT AT THE BOTTOM OF A WAVE THAT IS HEADED TO NEW HEIGHTS IN THE JARGON OF THE DISMAL SCIENCE ARE THE CHANGES CYCLICAL OR STRUCTURAL AT THE PALO ALTO CENTER DIRECTOR STEPHEN LEVY ARGUES THAT CALIFORNIA'S PROBLEMS ARE CYCLICAL HE ASSERTS IN WHAT IS VERY MUCH A MINORITY VIEW AMONG THE CALIFORNIA ECONOMY WATCHERS THAT THE STATE WILL RECOVER AS IT DID FROM STEEP RECESSIONS IN THE EARLY 1970S AND 1980S WE'VE LIVED THROUGH TWO OF THESE THINGS BEFORE AND I CAN REMEMBER WHEN IT LOOKED WORSE HE SAYS COUNTERS LARRY J KIMBELL DIRECTOR AT THE UCLA PROJECT WE'RE NOT TALKING HERE ABOUT A BUSINESS CYCLE THAT WILL BE OVER IN THREE YEARS MR KIMBELL SAYS CALIFORNIA HAS SLID TOO FAR TO GET BACK TO ITS 1990 PEAK ANY TIME SOON THE MOTHER OF ALL RECOVERIES WOULDN'T GET US BACK TO WHERE WE WERE IN THREE YEARS MR KIMBELL AND HIS PREDECESSOR AT UCLA DAVID HENSLEY WHO LEFT RECENTLY FOR SALOMON BROTHERS ASSERT THAT THE DECLINE OF AEROSPACE AND OTHER MANUFACTURING IN SOUTHERN CALIFORNIA FAR SURPASSES THE SCOPE OF CYCLICAL CHANGE THEY ALSO MAINTAIN THAT SHARPLY DECLINING HOUSE PRICES IN SEGMENTS OF THE MARKET HAVE ERASED ACCUMULATED WEALTH FOR MANY FAMILIES WITH DRAMATIC EFFECTS IN THE FUTURE AS WELL TODAY'S IMMIGRATION BRINGS OPPORTUNITIES AND COSTS VERY DIFFERENT FROM THE STATE'S PAST DOMESTIC INFLUX ALL OF THIS THEY ARGUE MEANS STRUCTURAL CHANGE MR LEVY AT THE FORPROFIT CENTER FOR CONTINUING STUDIES DISMISSES THE UCLA POINTS HE SEES EXPORT DEMAND AND TRADE AS A STRONG POINT FOR CALIFORNIA IN THE COMING DECADE TOGETHER WITH NONDEFENSE HIGHTECHNOLOGY INDUSTRIES PROFESSIONAL SERVICES AND TOURISM AND ENTERTAINMENT THE RIGHT INDUSTRIES ARE OUT THERE FOR THIS STATE SAYS MR LEVY THE NORTH AMERICAN FREE TRADE AGREEMENT COULD PROVIDE A BOOST TO THE CALIFORNIA ECONOMY SOME CONTEND BUT THE EFFECT IS DIFFICULT AT BEST TO PREDICT EVEN SO MANY OF MR LEVY'S PEERS IN THE ECONOMICS TRADE FIND IT HARD TO SHARE HIS OPTIMISM A GOOD PART OF THE RECESSION WE'VE SEEN IS CYCLICAL AGREES LYNN REASER CHIEF ECONOMIST AT FIRST INTERSTATE BANCORP BUT THE DECLINE OF THE COLD WAR AND DEFENSE DEMAND IS STRUCTURAL CHANGE AS IS THE GREATER COMPETITION WE ARE SEEING FROM OTHER STATES THAT SHE AND OTHER ECONOMISTS ARGUE WILL MEAN MUCH FOR CALIFORNIA IN THE COMING DECADE 9311160172 931116 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK ALAN N BRAVERMAN 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT AND DEPUTY GENERAL COUNSEL MR BRAVERMAN WAS PREVIOUSLY A PARTNER AT THE WASHINGTONBASED LAW FIRM WILMER CUTLER & PICKERING THE BROADCASTER ALSO NAMED JOHN T HEALY 54 TO THE NEWLY CREATED POSITION OF PRESIDENT ABC INTERNATIONAL OPERATIONS AND EXECUTIVE VICE PRESIDENT ABC CABLE & INTERNATIONAL BROADCAST GROUP MR HEALY WAS FORMERLY PRESIDENT OF CAPITAL CITIES/ABC VIDEO ENTERPRISES INTERNATIONAL 9311160171 931116 WHO'S NEWS INDEPENDENCE HOLDING CO INDEPENDENCE HOLDING CO STAMFORD CONN STEVEN B LAPIN 48 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER A NEW POSITION AND PRESIDENT OF THIS PRIVATEINVESTMENT AND MANUFACTURING COMPANY AS PRESIDENT HE SUCCEEDS EDWARD NETTER 61 CHAIRMAN AND CHIEF EXECUTIVE ALSO ROY TK THUNG 49 WAS NAMED EXECUTIVE VICE PRESIDENT A NEW POSITION AND CHIEF FINANCIAL OFFICER MR THUNG WAS FORMERLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ALL THREE MEN HOLD THE SAME POSITIONS AT GENEVE CORP A HOLDING COMPANY THAT HOLDS A MAJORITY EQUITY POSITION IN IHC ALSO THE COMPANY NAMED DONALD T NETTER TO ITS BOARD INCREASING THE BOARD'S SIZE TO EIGHT DONALD NETTER EDWARD NETTER'S SON WAS MOST RECENTLY EXECUTIVE OFFICER AND A DIRECTOR OF DAMON CORP A PROVIDER OF LABORATORY TESTING SERVICES 9311160170 931116 WHO'S NEWS ACX TECHNOLOGIES INC ACX TECHNOLOGIES INC GOLDEN COLO THIS CERAMICS PACKAGING AND ALUMINUM CONCERN APPOINTED JOHN HOYT STOOKEY 63 YEARS OLD TO ITS BOARD EXPANDING THE BOARD'S SIZE TO EIGHT MEMBERS MR STOOKEY IS FORMER CHAIRMAN OF QUANTUM CHEMICAL CORP WHICH WAS ACQUIRED LAST MONTH BY BRITAIN'S HANSON PLC 9311160169 931116 WHO'S NEWS DETREX CORP DETREX CORP SOUTHFIELD MICH JOHN D WITHROW 61 YEARS OLD WAS ELECTED A DIRECTOR SUCCEEDING GEORGE KIMMEL WHO RESIGNED FROM THIS SUPPLIER TO THE CHEMICAL METALWORKING AND OIL INDUSTRIES MR WITHROW IS PRESIDENT OF LECTRON PRODUCTS INC AN AUTOMOTIVE EQUIPMENT SUPPLIER 9311160168 931116 WHO'S NEWS INSITUFORM TECHNOLOGIES INC INSITUFORM TECHNOLOGIES INC MEMPHIS TENN JEANPAUL RICHARD 50 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND PRESIDENT OF THIS DEVELOPER OF SEWER TUNNEL AND PIPELINE REPAIR TECHNOLOGY MR RICHARD SUCCEEDS WILL C WILLIS JR 41 YEARS OLD WHO IN JUNE SAID HE WOULD STEP DOWN SO THE COMPANY COULD HIRE A TOP EXECUTIVE TO GUIDE INTERNATIONAL EXPANSION MR RICHARD MOST RECENTLY WAS CHIEF EXECUTIVE OF THE MASSEYFERGUSON GROUP A UKBASED AGRICULTURAL EQUIPMENTMAKING UNIT OF VARITY CORP A BUFFALO NY MANUFACTURING CONCERN 9311160167 931116 FOREIGN EXCHANGE DOLLAR BOUNCES BACK AS US FUNDS DECIDE THE SELLOFF HAS RUN ITS COURSE BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR REBOUNDED AGAINST THE MARK AND THE YEN AS SOME US INVESTMENT FUNDS JUDGED THAT LAST WEEK'S SELLOFF HAD RUN OUT OF STEAM THE US CURRENCY ALSO CONTINUED TO GAIN GROUND AGAINST THE AILING AUSTRALIAN AND CANADIAN DOLLARS WHICH WERE HURT BY SALES BY SOME BIG JAPANESE INVESTORS AND JITTERS OVER AN IMMINENT CONGRESSIONAL VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16920 MARKS UP FROM 16850 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10670 YEN UP FROM 10575 YEN STERLING WAS TRADING AT 14895 DOLLARS DOWN FROM 14930 DOLLARS MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10670 YEN AND AT 16945 MARKS TRADERS NOTED THAT THE DAY'S MAIN EVENT ARRIVED AROUND MIDDAY IN NEW YORK WHEN SOME LARGE US SPECULATIVE FUNDS BOUGHT BACK THE DOLLARS THEY HAD SOLD FOR YEN LAST WEEK IN A BET THAT THE DOLLAR WOULD FALL LAST WEEK'S SALES HAD PUSHED THE DOLLAR STEADILY LOWER AGAINST THE YEN AND DROPPED IT ESPECIALLY SHARPLY IN LATE TRADING ON FRIDAY BUT MONDAY AFTER THE MARKET REBUFFED SEVERAL ATTEMPTS TO PUSH THE DOLLAR MUCH BELOW 10560 YEN PLAYERS DECIDED THE MOVE HAD GONE FAR ENOUGH A LOT OF GUYS WHO WENT HOME SHORT FRIDAY DIDN'T REALLY GET THE FOLLOWTHROUGH THEY WANTED ON MONDAY SAID MARK SCHWARTZ A VICE PRESIDENT AT LEHMAN BROTHERS INC IN NEW YORK THAT DISAPPOINTMENT STARTED A QUICK ROUND OF DOLLAR BUYING WHICH PICKED UP MOMENTUM AS THE DOLLAR BURST THROUGH TECHNICAL LEVELS AND TRIGGERED STOPLOSS ORDERS IN ALL THE DOLLAR GAINED ABOUT 1 1/2 YEN ON THE RALLY OR ALMOST EVERYTHING IT HAD LOST IN FRIDAY'S SELLOFF AND THE RALLY AGAINST THE YEN ALSO SPILLED OVER TO HELP THE DOLLAR AGAINST THE MARK TRADERS NOTED WITH THE DOLLAR BREAKING ABOVE A KEY TECHNICAL POINT AT 16900 MARKS AND GETTING BACK WITHIN STRIKING DISTANCE OF THE 170 LEVEL THAT THWARTED SEVERAL RALLIES LAST WEEK BUT DEALERS REPORTED THAT TRADING WAS RELATIVELY RESTRAINED AS PLAYERS AWAIT SEVERAL NEWS EVENTS EXPECTED LATER THIS WEEK A CRUCIAL CONGRESSIONAL VOTE ON NAFTA SET FOR TOMORROW HAS CAPTURED THE SPOTLIGHT FOR THE MOMENT TRADERS SAID BUT THEY ADDED THAT A MEETING IN SEATTLE BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA LATER THIS WEEK WILL ALSO BE CLOSELY WATCHED TRADERS POINTED OUT THAT PESSIMISM OVER THE NAFTA VOTE AND ITS IMPLICATIONS FOR MORE GENERAL WORLD TRADE LIBERALIZATION HAVE ALREADY WEIGHED ON THE CANADIAN AND AUSTRALIAN DOLLARS WITH BOTH WEAKENING AGAINST THE US DOLLAR YESTERDAY AND ADDING TO THEIR WOES TRADERS SAID WERE ASSET SALES BY LARGE JAPANESE LIFE INSURANCE COMPANIES WHICH SEEMED TO BE SHIFTING INVESTMENTS TO COVER LOSSES IN THE TOKYO STOCK MARKET'S RECENT SLIDE TRADERS SAID THAT ALTHOUGH CANADA WOULD BE MOST DIRECTLY AFFECTED BY A REJECTION OF THE TREATY IT WOULD ALSO HURT AUSTRALIA BY CASTING FURTHER DOUBT ON THE POSSIBILITY THAT TALKS ON THE GENERAL AGREEMENT ON TARIFFS AND TRADE CAN BE COMPLETED BY THE DEC 15 DEADLINE AND THAT THEY ADDED IS VERY BAD NEWS FOR COUNTRIES SUCH AS CANADA AND AUSTRALIA WHICH DEPEND HEAVILY ON EXPORTS OF COMMODITIES IF NAFTA GOES THEN GATT IS IN QUESTION SAID RICH TAUBERMAN A VICE PRESIDENT AT WESTPAC BANKING CORP IN NEW YORK AUSTRALIA'S ECONOMIC WELLBEING IS PRETTY MUCH TIED TO A LOW TARIFF ENVIRONMENT FOR THEIR EXPORTS HE ADDED WITH THE NAFTA SITUATION DEPRESSING SENTIMENT TRADERS SAID THAT SALES BY JAPANESE INVESTORS WERE PARTICULARLY DAMAGING FOR BOTH CURRENCIES SENDING BOTH SHARPLY LOWER AND PROMPTING CENTRAL BANK INTERVENTION TO PROVIDE STABILITY THE RESERVE BANK OF AUSTRALIA WAS SEEN BUYING AUSTRALIAN DOLLARS AT 06500 TO 06515 US DOLLARS LATE IN SYDNEY TRADERS SAID WHILE THE BANK OF CANADA WAS REPORTED TO HAVE SOLD US DOLLARS FOR CANADIAN DOLLARS AT 13240 CANADIAN DOLLARS IN THE MORNING IN NEW YORK HELPED BY THE INTERVENTION AND BUYING BY LOCAL BANKS BOTH CURRENCIES EVENTUALLY BOUNCED BACK FROM THEIR LOWEST LEVELS THE CANADIAN DOLLAR IN PARTICULAR WAS ALSO HELPED BY A REPORT SHOWING A LOWERTHANEXPECTED BUDGET DEFICIT IN THE PROVINCE OF ONTARIO 9311160166 931101 LEAVE THAT BED BUT HELP YOURSELF TO TINY SHAMPOOS NO MATTER IF RICH OR FAMOUS HOTEL GUESTS CAN'T RESIST LIFTING HANGERS AND SOAP BY JAMISON S PRIME AND SUSAN CAREY STAFF REPORTERS OF THE WALL STREET JOURNAL HE'S RICH HE'S SUCCESSFUL AND HE HAS A BATHROOM CABINET CRAMMED FULL OF ITTYBITTY BOTTLES OF SHAMPOO FILCHED FROM HOTEL ROOMS ALL OVER THE GLOBE THERE'S SOMETHING SICK ABOUT THIS WHOLE THING ADMITS JERRY DELLA FEMINA A VETERAN AD EXECUTIVE WHO ESTIMATES HIS NET WORTH AT MORE THAN 20 MILLION I PERSONALLY HAVE IN MY POSSESSION THOUSANDS OF LITTLE SHAMPOOS FROM THE THOUSANDS OF HOTELS I'VE BEEN TO AND I DON'T EVEN HAVE HAIR CAN'T RESIST POCKETING THOSE TINY BARS OF HOTEL SOAP SQUIRRELING AWAY A COMPLETE SET OF SHERATON SHOWER CAPS AND HYATT SHOESHINE MITTS SO IT SEEMS IS JUST ABOUT EVERYBODY ELSE NO MATTER HOW WEALTHY OR FAMOUS NO MATTER HOW WILLING TO SHELL OUT HUNDREDS OF DOLLARS A NIGHT FOR A ROOM HOTEL GUESTS SEEM INEXPLICABLY COMPELLED TO HOARD EVEN THE CHINTZIEST HOTEL FREEBIES FROM HAND LOTION TO HANGERS NOT THAT THEY EVEN USE THE STUFF CINCINNATI AD EXECUTIVE JERRY GALVIN HANGS ONTO LITTLE SHAMPOOS UNTIL THEY ARE SO OLD I'M AFRAID TO USE THEM ON MY HAIR YET HE CAN'T HELP BUT COLLECT MORE I'M CAUGHT UP IN A VORTEX HE SAYS I'M HELPLESS PERHAPS IT'S THE IRRESISTIBLE THOUGHT OF GETTING SOMETHING FOR NOTHING OK NOTHING IF YOU DON'T COUNT DAILY ROOM RATES THAT OFTEN TOP 200 OR THE FEELING THAT ROOMS ARE SO EXPENSIVE THAT GUESTS SHOULD BE ENTITLED TO SWIPE SOMETHING EVEN SOMETHING DIRTCHEAP THOSE MINISHAMPOOS FOR EXAMPLE COST BIG CHAINS AS LITTLE AS 15 CENTS A BOTTLE WHATEVER THE MOTIVATION THE URGE TO POCKET MINIMOUTHWASHES AND TINY BARS OF SOAP HAS TURNED THE HOTELAMENITIES BUSINESS INTO A 250 MILLION TO 300 MILLION ANNUAL INDUSTRY ESTIMATES TIM MCCABE A VICE PRESIDENT OF MARIETTA CORP AN AMENITIES SUPPLIER IN CORTLAND NY THAT ADDS UP TO AN AWFUL LOT OF LITTLE BODY LOTIONS AND SEWING KITS CONSIDERING THAT VIRTUALLY EVERY GEWGAW THAT MOST HOTELS STOCK COSTS UNDER 1 ALL IN ALL A REPUGNANT TREND SAYS ETIQUETTE DOYENNE JUDITH MARTIN BETTER KNOWN AS MISS MANNERS THE HOTEL SAYS IN EFFECT IF WE GIVE YOU CHEAP STUFF TO STEAL WILL YOU LEAVE THE BATHROBES AND TVS IN THE ROOM SHE SAYS A CHEAP AND INSULTING OFFER SHE ADDS BUT LET'S GET TO THE POINT DOES SHE TAKE THE STUFF TOO I WOULDN'T DREAM OF IT SHE SAYS TO BE FAIR HOTELS SAY THEY PUT THE STUFF THERE IN THE FIRST PLACE PRECISELY SO PEOPLE WILL TAKE IT AND MOST GUESTS REALIZE THAT NOT EVERYTHING IN A HOTEL ROOM IS UP FOR GRABS I'M CERTAINLY NOT GOING TO TAKE FURNISHINGS SAYS MARK HIGDEN A NEW YORK NECKTIE DESIGNER WHO SHOWS OFF HOTEL SOAPS IN HIS BATHROOMS AT HOME THAT STUFF IS TOO BIG BUT HE SAYS WHEN IT COMES TO LUXURIOUS BATHROOM AMENITIES HE DEFINITELY RETURNS TO A HOTEL BECAUSE OF THE STUFF THEY'VE GOT THOUGH MISS MANNERS INSISTS THAT POLITE HOTEL GUESTS MUST NEVER SOUVENIRHUNT IN THE BATH APPARENTLY THERE IS A PLENTIFUL POPULATION OF THE ETIQUETTEIMPAIRED THE HYATT REGENCY CHICAGO EACH YEAR GOES THROUGH NEARLY A QUARTER MILLION MINIBOTTLES OF SHAMPOO ALONE FOR ITS 2019 ROOMS ITT SHERATON CORP POURS 45 MILLION ANNUALLY INTO TINY SOAPS SUNTAN LOTIONS AND THE LIKE CHOICE HOTELS INTERNATIONAL BUYS AN ESTIMATED 30 MILLION LITTLE SHAMPOO BOTTLES A YEAR FOR ITS 2500 US HOTELS NOT THAT EVERY ITEM IS EQUALLY POPULAR AT CHICAGO'S DRAKE HOTEL NOBODY TAKES THE HAND AND BODY LOTION A SPOKESWOMAN REPORTS THE BIGGEST DUD AT STOUFFER HOTELS & RESORTS IS NO DOUBT A COMBINATION SHOEHORN/LINTBRUSH THAT HARDLY ANYONE BOTHERS TO BRING HOME A SPOKESMAN SAYS SHERATON ON THE OTHER HAND ORDERS MORE SEWING KITS BATH GEL AND SHOWER CAPS THAN ANYTHING ELSE PROMPTING A BAFFLED SPOKESWOMAN TO ASK WHO EVER USES SHOWER CAPS AND FOUR SEASONS CUSTOMERS GUSH OVER THE SOAP IN DECORATOR TINS FREQUENT TRAVELERS HAVE THEIR OWN PERSONAL FAVORITES SEN JAMES M JEFFORDS A REPUBLICAN FROM VERMONT IS SO FRUGAL THAT HE SLEPT IN HIS OFFICE ON CAPITOL HILL FOR TWO FULL YEARS AFTER BEING ELECTED JUST TO AVOID PAYING RENT I NEVER TAKE THE SHAMPOO HE REPORTS BUT I ALWAYS TAKE THE SOAP AND MOUTHWASH RONALD GIDWITZ GENERALLY PASSES ON THE SHAMPOO TOO HE IS AFTER ALL CHIEF EXECUTIVE OF CHICAGOBASED HELENE CURTIS INDUSTRIES INC THE NATION'S NO 2 HAIRCARE COMPANY WHICH LIKE GIANTS PROCTER & GAMBLE CO AND REVLON INC SUPPLIES SHAMPOOS TO HOTELS ITSELF I DO TAKE THE SHOWER CAPS THOUGH HE ADMITS OTHER GUESTS AREN'T THAT DISCRIMINATING AND TAKE ANYTHING THEY CAN GET THEIR HANDS ON IN THE BEDROOM OF A HYATT REGENCY CHICAGO SUITE EXECUTIVE HOUSEKEEPER TOM BUCKLEY YANKS A PLASTIC LAUNDRY SACK FROM THE CLOSET HE WAVES THE EMPTY BAG IN THE AIR AS HE TELLS OF A GUEST WHO ASKED THE STAFF OF THE HOTEL WHERE SUITES START AT 365 A NIGHT TO RETRIEVE SOME SHAMPOO SHE HAD LEFT BEHIND HOUSEKEEPING BROUGHT DOWN THIS SACK STUFFED FULL HE SAYS OVER THE COURSE OF THE WEEK SHE HAD MANAGED TO FILL THIS WITH HYATT SHAMPOO BOTTLES THE AMENITIES ESCALATION PROBABLY BECAME INEVITABLE AFTER THE HOLIDAY INN WORLDWIDE CHAIN WAS FOUNDED IN 1952 WITH THE PROMISE OF A SHOWER CAP IN EVERY BATHROOM AND A BAR OF SOAP FOR EVERY SINK LATER SHAMPOO WAS ADDED TO THE LIST OF ESSENTIALS AND THE HOTEL INDUSTRY HAD CREATED A MONSTER BY THE 1980S A HOTELBUILDING BOOM HAD FLOODED THE MARKET WITH TOO MANY ROOMS COMPETING FOR TOO FEW GUESTS AND A FULLFLEDGED AMENITIES WAR ERUPTED IF THE HOTEL ACROSS THE STREET HAD FIVE ITEMS YOU'D HAVE TO COME UP WITH SIX SAYS ED WATKINS EDITOR OF THE TRADE PUBLICATION LODGING HOSPITALITY IN CLEVELAND NOW WITH HOTEL PROFITS CRIMPED BY FIERCE COMPETITION MANY COMPANIES ARE CUTTING BACK ON AMENITIES HYATT GUESTS WHO FORGET THEIR TOOTHBRUSHES OR RAZORS CAN GET THOSE ITEMS ON DEMAND BUT WE DON'T PUT THEM IN 1000 ROOMS AS THE CHAIN ONCE DID SAYS DARRYL HARTLEYLEONARD PRESIDENT OF HYATT HOTELS CORP A WISE MOVE PERHAPS NOT EVERY GUEST WOULD AGREE IN A RECENT SURVEY OF ITS GUESTS OMNI HOTELS FOUND THAT 16 BELIEVE TOILETRIES ARE THE MOST IMPORTANT AMENITY A HOTEL CAN OFFER THAT RANKS THOSE LITTLE SHAMPOOS AND LOTIONS ABOVE COMPUTERS FAX MACHINES AND EVEN HEALTH CLUBS SEE RELATED LETTER LETTERS TO THE EDITOR SHARE THE FREEBIES WSJ NOV 16 1993 9311010083 YY93 MM11 9311160165 931116 WHO'S NEWS SAAB AUTOMOBILE AB SAAB AUTOMOBILE AB TROLLHATTAN SWEDEN JAMES P CRUMLISH 49 YEARS OLD WAS NAMED REGIONAL DIRECTOR FOR THE AMERICAS AT THIS AUTO MAKER THE POST HAS BEEN VACANT SINCE ROBERT J SINCLAIR RETIRED TWO YEARS AGO MR CRUMLISH FORMERLY CHIEF FINANCIAL OFFICER AT SAAB WILL MOVE TO ITS US HEADQUARTERS IN NORCROSS GA WILLIAM S KELLY PRESIDENT OF SAAB'S US MARKETING ARM WILL REPORT TO MR CRUMLISH SAAB IS A JOINT VENTURE BETWEEN GENERAL MOTORS CORP AND SAABSCANIA AB A UNIT OF SWEDEN'S AB INVESTOR 9311160164 931116 WHO'S NEWS TEXTRON INC TEXTRON INC PROVIDENCE RI THIS AEROSPACE COMMERCIAL PRODUCTS AND FINANCIAL SERVICES CONCERN PROMOTED THREE EXECUTIVES TO NEW POSITIONS FRANK GULDEN 57 YEARS OLD AND PREVIOUSLY GROUP VICE PRESIDENT WAS NAMED SENIOR VICE PRESIDENT OF HUMAN RESOURCES A NEW POSITION HERBERT L HENKEL 45 WAS NAMED GROUP VICE PRESIDENT SUCCEEDING MR GULDEN MR HENKEL WAS PREVIOUSLY PRESIDENT OF THE COMPANY'S GREENLEE UNIT CARL D BURTNER 51 WAS NAMED PRESIDENT OF THE GREENLEE UNIT SUCCEEDING MR HENKEL MR BURTNER WAS PREVIOUSLY VICE PRESIDENT OPERATIONS AT THE UNIT 9311160163 931116 SIGNAL TECHNOLOGY PURCHASE SUNNYVALE CALIF SIGNAL TECHNOLOGY CORP SAID IT ACQUIRED THE MICROWAVE AND INSTRUMENT DIVISION OF THORN EMI CO'S SYSTRON DONNER CORP DETAILS OF THE CASH TRANSACTION WEREN'T DISCLOSED 9311160162 931116 WHO'S NEWS CHECKMATE ELECTRONICS INC CHECKMATE ELECTRONICS INC ROSWELL GA FRANK PETERS 46 YEARS OLD AND HOWARD YENKE 57 WERE NAMED DIRECTORS OF THIS CHECKVERIFICATIONTECHNOLOGY CONCERN THEY SUCCEED DAVID ELLIS 52 PRESIDENT OF EGL HOLDINGS INC A VENTURECAPITAL FIRM IN ATLANTA AND DUDLEY MOORE 57 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF OMNI INSURANCE GROUP IN ATLANTA WHO RESIGNED TO DEVOTE MORE TIME TO THEIR OWN COMPANIES CHECKMATE SAID MR PETERS IS VICE PRESIDENT AND CONTROLLER OF MERRY GO ROUND ENTERPRISES A RETAILER BASED IN JOPPA MD AND MR YENKE IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOCA RESEARCH A COMPUTERPRODUCTS MAKER IN BOCA RATON FLA 9311160161 931116 WHO'S NEWS PALOMAR MEDICAL TECHNOLOGIES INC PALOMAR MEDICAL TECHNOLOGIES INC BEVERLY MASS THE COMPANY SAID ITS BOARD REMOVED PAUL DE VOS AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AND REPLACED HIM WITH STEVEN GEORGIEV CHAIRMAN PALOMAR GAVE NO EXPLANATION FOR THE MOVE AND MR DE VOS 42 YEARS OLD SAID HE HAS NO IDEA WHY HE WAS REMOVED FROM HIS POSTS THERE IS CLEARLY A DISAGREEMENT ON THE BOARD OF DIRECTORS IN TERMS OF THE FUTURE DIRECTION OF THE COMPANY HE SAID DECLINING TO ELABORATE MR DE VOS WHO SERVED AS CHIEF EXECUTIVE AND PRESIDENT SINCE THE COMPANY'S INCEPTION IN 1991 REMAINS A DIRECTOR PALOMAR DEVELOPS MEDICAL DEVICES THAT USE LASERS 9311160160 931116 WHO'S NEWS USG CORP CHOOSES FOOTE FOR PRESIDENT AND OPERATING CHIEF CHICAGO WILLIAM C FOOTE PRESIDENT AND CHIEF EXECUTIVE OF TWO USG CORP UNITS WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE BUILDINGPRODUCTS CONCERN EFFECTIVE JANUARY 1994 MR FOOTE 42 YEARS OLD SUCCEEDS EUGENE B CONNOLLY WHO WILL CONTINUE AS USG CHAIRMAN AND CHIEF EXECUTIVE THE MOVE APPARENTLY CONCLUDES THE COMPANY'S SEARCH FOR THE EVENTUAL SUCCESSOR TO MR CONNOLLY 61 IN ITS TOP POSTS THE SEARCH BEGAN IN MARCH WHEN ANTHONY J FALVO LEFT THE POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER TO BECOME VICE CHAIRMAN MR FALVO HAS INDICATED HE WANTS TO RETIRE IN 1994 USG SAID IT PLANS SEVERAL MANAGEMENT CHANGES IN JANUARY J BRADFORD JAMES THE 46YEAROLD USG SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WILL BECOME A USG VICE PRESIDENT AS WELL AS PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S USG INTERIORS UNIT MR FOOTE PRESENTLY HEADS USG INTERIORS AND A SECOND UNIT L&W SUPPLY RICHARD H FLEMING THE 46YEAROLD USG VICE PRESIDENT AND TREASURER WILL BECOME USG VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FRANK R WALL THE 60YEAROLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF L&W SUPPLY WILL BECOME THAT UNIT'S PRESIDENT AND CHIEF EXECUTIVE 9311160159 931116 FORD MOTOR RECALLS SOME '93 MUSTANGS MOTORHOME CHASSIS DEARBORN MICH FORD MOTOR CO IS RECALLING 4100 MUSTANGS AND 18500 MOTORHOME CHASSIS TO CORRECT TWO SEPARATE SAFETY PROBLEMS THE BRAKE FLUID ON FORD'S 19891993 SUPERDUTY MOTORHOME CHASSIS SOMETIMES OVERHEATS CAUSING THE MOTOR HOMES TO LOSE SOME BRAKING POWER FORD SAID IT IS AWARE OF ONE REPORTED ACCIDENT AND ASKS OWNERS OF MOTOR HOMES BUILT ON THE FORD CHASSIS TO BRING THEIR VEHICLES IN FOR REPAIR A HEATSHIELD KIT INSTALLED BY DEALERS WILL CORRECT THE PROBLEM FORD SAYS SEPARATELY FORD IS RECALLING 1993 MUSTANGS WITH 50LITER ENGINES BECAUSE OF A POSSIBLE FUEL LEAK SOME WEAK FUEL TUBING WAS INSTALLED IN THE CARS AND MAY CRACK CAUSING LEAKS STOPPING THE ENGINE AND CREATING A FIRE HAZARD FORD SAID IT IS UNAWARE OF ANY OWNERS WHO HAVE HAD PROBLEMS WITH THE TUBING THE FLAW WAS DETECTED ON SOME CARS BEFORE THEY WERE SHIPPED TO DEALERS DEALERS WILL REPLACE THE TUBING 9311160158 931116 TECHNOLOGY KODAK HOPES TO GRAB LAPTOP PC BUSINESS WITH MINIPHOTO CD ROCHESTER NY EASTMAN KODAK CO SAID IT WILL OFFER A MINIVERSION OF ITS PHOTO CD DISK LATE NEXT YEAR AIMING TO GIVE THE COMPANY A FOOTHOLD IN THE FASTEXPANDING LAPTOP AND NOTEBOOK COMPUTER MARKET ALTHOUGH THESE 80MM DISKS HOLD ONETHIRD THE INFORMATION OF STANDARD 120MM DISKS AND COST ONLY SLIGHTLY LESS KODAK IS ANTICIPATING THAT LAPTOP COMPUTERS WHERE LOW WEIGHT AND SMALL SIZE ARE CRUCIAL WILL OFFER A MARKET FOR THE SMALLER COMPACT DISKS PHOTO CD IS A TECHNOLOGY FOR STORING PHOTOS SO THEY CAN BE VIEWED OR EDITED ON COMPUTER OR TELEVISION THE NEW SMALLER DISK CAN HOLD 36 EXPOSURES FROM ONE 35MM ROLL OF FILM AND IS COMPATIBLE WITH MOST OF KODAK'S PHOTOCD PLAYERS ON THE MARKET THE COMPANY SAID MOST LAPTOP AND NOTEBOOK COMPUTERS USE 35INCH FLOPPY DISKS NOT COMPACT DISKS PANASONIC IS TESTING ONE OF THE FIRST NOTEBOOK COMPUTERS WITH AN 80MM COMPACTDISK DRIVE KODAK IS BETTING THAT ONCE THAT MARKET TAKES OFF THESE SMALL CDS WITH 200 MEGABYTES OF MEMORY WILL BITE INTO THE MARKET OF THE FLOPPY DISKS WHICH ONLY HOLD 14 MEGABYTES OF MEMORY SCOTT BROWNSTEIN A FORMER KODAK EMPLOYEE WHO LED THE TEAM THAT INVENTED PHOTO CD WARNS THAT 80MM DISKS MAY HAVE TROUBLE IF BUYERS PERCEIVE THEM AS LESS VALUABLE THESE SMALL DISKS MAY HOLD ONETHIRD THE INFORMATION BUT THEY WON'T BE ONETHIRD THE PRICE MR BROWNSTEIN SAYS HE POINTS OUT THAT THE MANUFACTURING COST OF THE SMALLER DISKS PROBABLY WON'T BE MUCH LESS THAN THAT OF THE 120MM DISKS KODAK ALSO SAID IT REACHED A LICENSING AGREEMENT WITH MICROSOFT CORP IN WHICH MICROSOFT WOULD INCORPORATE KODAK'S COLORMANAGEMENT TECHNOLOGY INTO ITS OPERATING SYSTEMS COLOR MANAGEMENT IS DESIGNED TO KEEP COLOR CONSISTENT IN DIGITALIMAGING SYSTEMS FROM SCANNING TO MONITOR TO PRINTING 9311160157 931116 WHO'S NEWS BELDING HEMINWAY CO BELDING HEMINWAY CO NEW YORK GARY P SILVERMAN 45 YEARS OLD WAS NAMED VICE PRESIDENT HUMAN RESOURCES OF THIS SEWINGPRODUCTS AND SPECIALTYFABRICS COMPANY THE POSITION IS NEW MR SILVERMAN WAS FORMERLY DIRECTOR COMPENSATION AND BENEFITS AT LTV CORP A STEEL COMPANY 9311160156 931116 TECHNOLOGY BELL ATLANTIC WILL TEST SPOKEN PHONECALL ID FOR CELLULAR CUSTOMERS PHILADELPHIA BELL ATLANTIC MOBILE THE CELLULAR ARM OF BELL ATLANTIC CORP PLANS TO BEGIN TESTING A SPOKEN CALLERIDENTIFICATION SERVICE FOR CELLULAR CUSTOMERS IN BALTIMORE STARTING IN JANUARY THE FIVEMONTH TRIAL WILL BEGIN WITH BELL ATLANTIC MOBILE EMPLOYEES AND WILL BE EXPANDED TO INCLUDE AS MANY AS 300 CELLULAR CUSTOMERS FROM THE BALTIMORE AREA IN FEBRUARY THE NEW SERVICE HELPS CUSTOMERS IDENTIFY A CALLER BY RECITING THE CALLING PHONE NUMBER IN A DIGITIZED VOICE OR IF PRERECORDED BY THE CELLULAR CUSTOMER RECITING THE NAME OF THE CALLER THE CUSTOMER CAN ACCEPT THE CALL OR REJECT IT CELLULAR CUSTOMERS PARTICIPATING IN THE TRIAL ALSO WILL BE ABLE TO PROGRAM PHONES AUTOMATICALLY TO REJECT OR ACCEPT CALLS FROM CERTAIN NUMBERS A THIRD SERVICE WILL OFFER A SPOKEN LIST OF UNANSWERED CALLS A REDIAL COMMAND WILL ALLOW NUMBERS TO BE CALLED BACK QUICKLY THE SERVICE USES A NEW TECHNOLOGY DEVELOPED BY GTE TELECOMMUNICATIONS SERVICES A SUBSIDIARY OF GTE CORP'S GTE INFORMATION SERVICES INC CALLED INTELLIBASE ENHANCED SERVICES BELL ATLANTIC MOBILE SAID THE SERVICE IS THE FIRST OF ITS KIND IN THE NATION BUT OTHER REGIONAL BELL PHONE COMPANIES ARE EXPECTED SOON TO OFFER SIMILAR SERVICES BASED ON THE SAME TECHNOLOGY A BELL ATLANTIC SPOKESMAN SAID SERVICE WILL COST 695 FOR UNLIMITED USE DURING THE TRIAL SPOKEN CALLERIDENTIFICATION WON'T BE AVAILABLE TO CUSTOMERS WHEN THEY LEAVE THE BALTIMORE/WASHINGTON HOMESERVICE AREA 9311160155 931116 AT&T TO REACH OUT AND TOUCH FREQUENT FLIERS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO FOLLOWING ITS TWO MAJOR RIVALS IS EXPECTED TO OFFER A DIAL FOR MILE PROGRAM IN WHICH CUSTOMERS RECEIVE FREQUENTFLIER MILES FOR DOLLARS SPENT ON LONGDISTANCE SERVICE AT&T WILL PROBABLY USE AT LEAST TWO MAJOR CARRIERS THE PHONE COMPANY AND ITS RIVALS MCI COMMUNICATIONS CORP AND SPRINT CORP HAVE BATTLED FIERCELY ON PRICE AND SERVICE BUT NOW THE WAR FOR CALLERS WILL BE FOUGHT WITH ONE OF THE MOST POWERFUL MARKETING WEAPONS AROUND FREQUENTFLIER MILES THE MOVE REFLECTS AT&T'S EFFORTS TO STEM LOSSES IN THE HIGHLY COMPETITIVE LONGDISTANCE MARKET THE INITIATIVE ALSO UNDERSCORES HOW POWERFUL FREQUENTFLIER MILES HAVE BECOME IN INFLUENCING CONSUMER BEHAVIOR EVEN IN NONTRAVEL INDUSTRIES MCI HAS TEAMED UP WITH AMR CORP'S AMERICAN AIRLINES AND WINGS HOLDINGS INC'S NORTHWEST AIRLINES SINCE THE LATE 1980S OFFERING FIVE MILES FOR EACH DOLLAR SPENT SPRINT ANNOUNCED ITS PARTNERSHIP WITH TRANS WORLD AIRLINES TWO MONTHS AGO AND FOR THE FIRST SIX MONTHS IS GIVING OUT 10 MILES FOR EACH DOLLAR SPENT THE PAYOUT IS THEN CUT TO FIVE MILES TWO YEARS AGO ALASCOM A UNIT OF PACIFIC TELECOM INC BEGAN A TIEIN WITH ALASKA AIRLINES IN WHICH ALASCOM CUSTOMERS IN ALASKA RECEIVE ONE FREE MILE FOR EACH MINUTE THEY'RE ON THE PHONE WITH SOMEONE IN THAT STATE FREQUENT FLIER TIEINS CAN BE EXPENSIVETELEPHONE COMPANIES PAY THE AIRLINES ABOUT ONE CENT FOR EACH MILE THEY HAND OUT BUT REGULAR TRAVELERS REPRESENT A HUGE MARKET IN THE LONGDISTANCE SERVICE BUSINESS BUSINESS TRAVELERS ARE ALWAYS USING THEIR CALLING CARDS AND HAVE MUCH HIGHER PHONE BILLS THAN NONTRAVELERS SAID RANDY PETERSEN EDITOR OF INSIDER FLYER MAGAZINE A TRAVEL PUBLICATION IN GOLDEN SPRINGS COLO GERALD RHODES VICE PRESIDENT OF MARKETING FOR SPRINT'S CONSUMER SERVICES GROUP ADDED THAT FREQUENT FLIERS ARE A VERY ATTRACTIVE MARKET AND WE'VE ALL IDENTIFIED IT AS SUCH AT&T'S MOVE INTO THE DIALFORMILE BUSINESS WILL DRASTICALLY EXPAND THE SCOPE OF SUCH PROGRAMS WHICH TYPICALLY APPLY ONLY TO HOUSEHOLDS NOT CORPORATIONS WHILE THE NATION'S NO 2 LONGDISTANCE COMPANY MCI SERVES AN ESTIMATED 20 MILLION RESIDENTIAL CUSTOMERS AT&T HAS AN ESTIMATED 85 MILLION TO 90 MILLION AT&T IS EXPECTED TO UNVEIL ITS PLAN EARLY NEXT YEAR AND TWO OF THE AIRLINE INDUSTRY'S THREE BIGGEST CARRIERS UAL CORP'S UNITED AIRLINES AND DELTA AIR LINES ARE LIKELY PARTNERS ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN A UNITED SPOKESMAN CONFIRMED THAT IT IS WORKING WITH AT&T ON A FREQUENTFLIER TIEIN BUT DECLINED TO DISCLOSE SPECIFICS A DELTA SPOKESMAN DECLINED TO COMMENT OTHER AIRLINES AS WELL AS HOTELS AND CARRENTAL CONCERNS MIGHT ALSO BE INVOLVED AN AT&T SPOKESMAN DECLINED TO DISCUSS THE INITIATIVE WE WON'T COMMENT ON ANY OF OUR PLANS HE SAID IT WOULDN'T BE HELPFUL IN A VERY COMPETITIVE ENVIRONMENT CRITICS SAY THE AIRLINE PARTNERSHIP IS OVERDUE AT&T'S LONGDISTANCE REVENUES ARE FLAT AND IT HAS ALREADY SAID THAT IT PLANS TO SCRAP ITS POORLY RECEIVED I PLAN WHICH WAS DESIGNED TO COUNTERACT MCI'S FRIENDS AND FAMILY DISCOUNT PROGRAM AT&T INSTEAD HAS PROMISED IT WILL INTRODUCE NEW SERVICES AND PRODUCTS THAT WILL CREATE EMOTIONAL TIES TO CUSTOMERS THE GOAL IS TO REVERSE THE COMPANY'S SLIDE IN THE 30 BILLION LONGDISTANCE SERVICE MARKET FOR CONSUMERS AT&T HAS 60 OF THAT MARKET COMPARED WITH MCI'S 19 BUT MCI IS ADDING MORE THAN ONE PERCENTAGE POINT TO ITS MARKET SHARE EACH YEAR AS IT REPORTS DOUBLEDIGIT GROWTH IN REVENUE AND PROFIT MCI SAYS IT HAS GIVEN OUT BILLIONS OF FREE MILES ON AMERICAN AND NORTHWEST AND THAT HAS PLAYED A ROLE IN STEALING CUSTOMERS FROM AT&T MCI'S LONGDISTANCE MARKET SHARE FOR CONSUMERS WAS LESS THAN 8 WHEN IT INTRODUCED FREQUENTFLIER TIEINS THESE PROGRAMS ARE VERY SUCCESSFUL BECAUSE WE PUT NO RESTRICTIONS ON THEM EVEN FOR CUSTOMERS ON A DISCOUNTED PLAN SAYS STEWART DOUGHERTY VICE PRESIDENT FOR BRAND MARKETING FOR MCI EVERYBODY WHO JOINS THESE PROGRAMS GETS REWARDED AT&T HAS TRIED BRANDLOYALTY PROGRAMS IN THE PAST INCLUDING ONE WITH A COMPANY CALLED AIRMILES INTERNATIONAL GROUP WHICH OFFERED FREE TRAVEL TO CUSTOMERS WHO BOUGHT PRODUCTS AND SERVICES FROM PARTICIPATING COMPANIES AIRMILES FOLDED EARLIER THIS YEAR AT&T'S RIVALS SAY THE COMPANY'S DECISION TO OFFER MILES DIRECTLY THROUGH AN AIRLINE REPRESENTS A VICTORY FOR THEM EVEN IF AT&T'S MOVE SUCCEEDS IN WINNING CUSTOMERS MILES COST THE PHONE COMPANIES MONEY MR DOUGHERTY OF MCI NOTES AND AT&T DIDN'T WANT TO PAY FOR SOMETHING CUSTOMER LOYALTY THAT IT USED TO GET FOR FREE 9311160154 931116 WHO'S NEWS ZIFF COMMUNICATIONS CO ZIFF COMMUNICATIONS CO NEW YORK J SCOTT BRIGGS 43 YEARS OLD WAS NAMED PRESIDENT OF A NEWLY CREATED CONSUMER MEDIA DIVISION FOR THIS PUBLISHING AND COMMUNICATIONS COMPANY MR BRIGGS CONTINUES AS PRESIDENT OF THE ZIFFDAVIS PUBLISHING CO UNIT ZIFFDAVIS CONSUMER MEDIA GROUP WILL MANAGE ALL OF THE COMPANY'S PRODUCTS AIMED AT THE CONSUMER MARKET FOR PERSONAL COMPUTERS AND DIGITAL ELECTRONICS THE GROUP PLANS TO CREATE SEVERAL NEW MEDIA AND LAUNCH A CONSUMER MAGAZINE IN 1994 9311160153 931116 ICF KAISER INTERNATIONAL FAIRFAX VA ICF KAISER INTERNATIONAL INC SAID ITS TUDOR ENGINEERING CO UNIT RECEIVED A TWOYEAR 26 MILLION CONTRACT FROM THE CITY OF BELLEVUE WASH TO PROVIDE PRELIMINARY ENGINEERING SERVICES FOR A PROPOSED FREEWAY INTERCHANGE THERE ICF KAISER SAID TUDOR WILL PROVIDE ENVIRONMENTAL DOCUMENTATION AND WILL HELP THE CITY COMPLETE DOCUMENTS AND TASKS BEFORE DESIGN OF THE INTERCHANGE BEGINS 9311160152 931116 WHO'S NEWS WAXMAN INDUSTRIES INC WAXMAN INDUSTRIES INC BEDFORD HEIGHTS OHIO NEAL R RESTIVO 33 YEARS OLD FORMERLY VICE PRESIDENTCORPORATE CONTROLLER WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THE SUPPLIER OF PRODUCTS TO THE HOME REPAIR AND REMODELING MARKET HE SUCCEEDS JEROME C JACQUES 46 WHO HAD BEEN SENIOR VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER MR JACQUES LEFT HIS POST LAST FRIDAY IN A MUTUAL DECISION ARRIVED AT BY THE COMPANY AND HIM A COMPANY SPOKESMAN SAID MR JACQUES COULDN'T BE REACHED FOR COMMENT THE COMPANY HASN'T YET NAMED A SUCCESSOR TO MR RESTIVO 9311160151 931116 ROLLSROYCE TO SET UP 2 UNITS LONDON ROLLSROYCE PLC ANNOUNCED YESTERDAY IT IS SETTING UP TWO AGENCY COMPANIES TO MANAGE THE CIVIL AND MILITARY BUSINESS OF ITS AEROSPACE GROUP EFFECTIVE JAN 1 THE BRITISH ENGINE MAKER SAID ROLLSROYCE AERO ENGINES WILL MANAGE THE OPERATIONS CURRENTLY MANAGED BY THE CIVIL ENGINE BUSINESS AND THAT ROLLSROYCE MILITARY AERO ENGINES WILL LOOK AFTER THE ACTIVITIES MANAGED BY THE MILITARY ENGINE BUSINESS 9311160150 931116 CURTICEBURNS UNIT TO SELL ASSETS ROCHESTER NY CURTICEBURNS FOODS INC SAID IT SIGNED A DEFINITIVE LETTER OF AGREEMENT TO SELL CERTAIN ASSETS OF ITS HILAND POTATO CHIP CO UNIT TO WEAVER POTATO CHIP CO OF LINCOLN NEB TERMS OF THE SALE WEREN'T DISCLOSED BUT THE COMPANY SAID IT EXPECTS THE SALE TO CLOSE WITHIN THE NEXT TWO WEEKS 9311160149 931116 SOUTHTRUST CORP PURCHASE ATLANTA SOUTHTRUST CORP SAID IT SIGNED A LETTER OF INTENT WITH HOMEBANC FSB IN ATLANTA TO BUY HOMEBANC'S SEVEN BRANCHES THE PRICE WASN'T DISCLOSED HOMEBANC OWNED BY NORO GROUP OF COS A VENTURE CAPITAL FIRM IN THE NETHERLANDS WILL RETAIN ITS MORTGAGE OPERATIONS 9311160148 931116 OMNI RINGLING FORM ALLIANCE SARASOTA FLA OMNI FILMS INTERNATIONAL INC AND RINGLING MULTIMEDIA CORP FORMED AN ALLIANCE TO DEVELOP ENTERTAINMENT PRODUCTS TERMS OF THE PACT WEREN'T DISCLOSED OMNI FILMS SAID THE PRODUCTS WILL BE DEVELOPED AND MANUFACTURED IN SARASOTA FLA RINGLING MULTIMEDIA A UNIT OF RINGLING SCHOOL OF ART & DESIGN IS A MULTIMEDIA PRODUCTION COMPANY SPECIALIZING IN INTERACTIVE DESIGN AND COMPUTER ANIMATION 9311160147 931116 AMAX SPINS OFF ALUMAX UNIT NEW YORK AMAX INC SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED SPINOFF OF ITS ALUMAX INC UNIT UNDER ITS MERGER AGREEMENT WITH CYPRUS MINERALS CO SHAREHOLDERS VOTED FRIDAY TO APPROVE THE AGREEMENT WHICH WILL RESULT IN THE CREATION OF THE US'S SECONDLARGEST PRODUCER OF COAL AND COPPER AMAX SHAREHOLDERS WILL RECEIVE ONE SHARE OF ALUMAX FOR EVERY TWO SHARES OF AMAX HELD IN THE TAXFREE DISTRIBUTION ALUMAX AN ALUMINUM PRODUCER BASED IN NORCROSS GA HAS ASSETS OF 27 BILLION AND REPORTED REVENUE OF 24 BILLION IN 1992 AMAX SAID 9311160146 931116 BUSINESS BRIEF TYSON FOODS CITING HIGH GRAIN PRICES REPORTS NET FELL 14 FOR ITS 4TH PERIOD SPRINGDALE ARK TYSON FOODS INC HAMPERED BY A HIGHER TAX RATE AND INCREASED GRAIN PRICES SAID ITS FISCAL FOURTHQUARTER EARNINGS FELL 14 THE POULTRY CONCERN SAID NET INCOME FOR THE PERIOD ENDED OCT 2 DROPPED TO 411 MILLION FROM THE YEAREARLIER NET OF 476 MILLION PERSHARE NET DECLINED 18 TO 28 CENTS A SHARE FROM 34 CENTS A YEAR EARLIER ON 7 FEWER SHARES OUTSTANDING SALES FOR THE QUARTER ROSE 8 TO 124 BILLION FROM 115 BILLION A YEAR AGO THE COMPANY SAID THAT FOURTHQUARTER RESULTS REFLECTED TAX ADJUSTMENTS INCLUDING A CHARGE OF 16 MILLION OR ONE CENT A SHARE FROM THE RETROACTIVE IMPACT OF A HIGHER TAX RATE AND A CHARGE OF 9 MILLION OR SIX CENTS A SHARE FOR A DEFERRED TAX LIABILITY THE LOWER EARNINGS WERE CONSISTENT WITH ANALYSTS' EXPECTATIONS BESIDES THE ADDITIONAL TAX LIABILITY SAID NAP OVERTON AN ANALYST AT MORGAN KEEGAN & CO IN MEMPHIS TENN TYSON'S RESULTS WERE HURT BY HIGHER FEED COSTS STEMMING FROM MIDWEST FLOODING ALSO HE NOTED THERE WERE ONLY 13 WEEKS IN THE QUARTER COMPARED WITH 14 WEEKS LAST YEAR IT WAS ONE OF THOSE QUARTERS IN WHICH JUST ABOUT EVERYTHING THAT MAKES IT TOUGH MADE IT TOUGH HE SAID DESPITE THE FOURTHQUARTER WOES TYSON RECORDED A 12 GAIN IN FULLYEAR NET TO 1803 MILLION FROM 1605 MILLION A YEAR AGO PERSHARE NET ROSE 5 TO 122 A SHARE FROM 116 A SHARE A YEAR AGO ON 7 FEWER SHARES OUTSTANDING SALES FOR THE FISCAL YEAR GREW 13 TO 471 BILLION FROM 417 BILLION A YEAR AGO BUT SOME ANALYSTS REMAIN CONCERNED ABOUT THE FUTURE ON FRIDAY ANALYST GEORGE DAHLMAN OF PIPER JAFFRAY INC IN MINNEAPOLIS LOWERED HIS FISCAL 1994 EARNINGS ESTIMATE TO 140 A SHARE FROM 148 A SHARE CITING RISING FEED COSTS AND A SLOWING GROWTH RATE HE ALSO DOWNGRADED HIS RATING ON THE COMPANY'S STOCK TO REASONABLY PRICED FROM ACCUMULATE IN TRADING ON THE THE NASDAQ STOCK MARKET YESTERDAY TYSON SHARES CLOSED UNCHANGED AT 2275 A SHARE 9311160145 931116 TECNOL ACQUIRES ANAGO STOCK FORT WORTH TEXAS TECNOL MEDICAL PRODUCTS INC SAID IT COMPLETED ITS ACQUISITION OF THE 45 OF ANAGO INC COMMON STOCK IT DOESN'T ALREADY OWN TECNOL WHICH MAKES DISPOSABLE MEDICAL PRODUCTS SAID IT PAID 28 MILLION FOR ALL OF ANAGO'S STOCK INCLUDING ITS INITIAL PURCHASE LAST YEAR OF 55 OF THE CLOSELY HELD MAKER OF DISPOSABLE MEDICAL PRODUCTS 9311160144 931116 FEDERAL INDUSTRIES STOCK LISTING TORONTO FEDERAL INDUSTRIES LTD SAID ITS CLASS A SHARES HAVE BEEN APPROVED FOR LISTING ON THE NASDAQ STOCK MARKET AND TRADING WILL BEGIN EARLY NEXT YEAR FEDERAL INDUSTRIES WINNIPEG MANITOBA HAS INTERESTS IN TRANSPORTATION METALS DISTRIBUTION AND RETAILING AND ITS SHARES CURRENTLY TRADE MAINLY ON THE TORONTO STOCK EXCHANGE 9311160143 931116 COKE PLANS CHINESE VENTURE ATLANTA COCACOLA CO SAID IT SIGNED A 26 MILLION JOINT VENTURE TO EXPAND ITS STATEOWNED BOTTLING OPERATIONS IN SOUTHERN CHINA KERRY HOLDINGS BEVERAGES LTD A VENTURE BETWEEN KERRY GROUP INVESTOR ROBERT KUOK'S HONG KONG COMPANY AND A COKE UNIT SIGNED AN AGREEMENT WITH NANNING KANGLE FOODSTUFF CO A STATEOWNED ENTITY TO INCREASE PRODUCTION CAPACITY AT THE BOTTLING PLANT IN NANNING THEN MOVE OPERATIONS TO A BIGGER LOCATION 9311160142 931116 WHO'S NEWS OEA INC OEA INC DENVER THIS MAKER OF AUTOMOTIVESAFETY AND AEROSPACE PRODUCTS NAMED GEORGE S ANSELL HOWARD P COLHOUN AND ROBERT J SCHULTZ TO ITS BOARD INCREASING ITS SIZE TO 11 MEMBERS DR ANSELL 59 YEARS OLD IS PRESIDENT OF THE COLORADO SCHOOL OF MINES MR COLHOUN 58 IS GENERAL PARTNER OF EMERGING GROWTH PARTNERS MR SCHULTZ 63 IS A FORMER VICE CHAIRMAN OF GENERAL MOTORS CORP 9311160141 931116 POLITICS & POLICY ANTINAFTA ROAR SEEMED MORE LIKE A WHINE AT WEEKEND RALLIES HELD TO FUEL OPPOSITION BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL AKRON OHIO LARRY EANES OF THE UNITED RUBBER WORKERS FUMED OVER THE PALTRY ATTENDANCE AT A SATURDAY TOWN HALL MEETING CALLED TO RAIL AGAINST THE NORTH AMERICAN FREE TRADE AGREEMENT THIS ROOM SHOULD BE FULL WE'RE HERE WHILE OUR OTHER SOCALLED UNION FRIENDS ARE IN THEIR HOMES WATCHING FOOTBALL AND BASKETBALL ON TV FOR NAFTA'S FOES THE WEEKEND WAS SUPPOSED TO HAVE BROUGHT OUT A FINAL BURST OF PUBLIC VENOM TOWARD THE TRADE PACT TURNING MANY OF THE 40ODD UNDECIDED LAWMAKERS INTO OPPONENTS FOR TOMORROW'S VOTE IN THE HOUSE BUT IN THIS INDUSTRIAL HEARTLAND CITY AND SOME OTHER KEY DISTRICTS AS WELL THE ANTINAFTA ROAR SEEMED MORE LIKE A WHINE INDEED NAFTA'S BOOSTERS FELT THEY GAINED SOME GROUND HALF A DOZEN CONGRESSIONAL FENCESITTERS CAME OUT IN FAVOR OF NAFTA YESTERDAY AND WHILE A HANDFUL OF OTHERS ANNOUNCED THEY'D VOTE AGAINST THE PACT THE OPPOSITION FAILED TO SCORE THE GAINS IT HAD SOUGHT IN THE SMALL TOWN OF SEDALIA MO LABOR MEMBERS AND FARMERS DISCUSSED THEIR OPPOSITION TO NAFTA AT A MEETING WITH DEMOCRATIC REP IKE SKELTON TIM BARCHAK AN AFLCIO OFFICIAL IN KANSAS CITY SAYS ANTINAFTA ACTIVISTS CARPOOLED TO GET TO THE MEETING BUT KEPT THE CROWD SMALL BECAUSE IT WAS COMMUNICATED TO US THAT THEY DIDN'T WANT TO SEE A LYNCH MOB THEIR ARGUMENTS AND COURTESY WAS TO NO AVAIL AN AIDE SAYS THE CONGRESSMAN MOSTLY HEARD PRONAFTA MESSAGES OVER THE LONG WEEKEND AND MR SKELTON YESTERDAY ANNOUNCED HE WOULD SUPPORT THE ACCORD IN CAMBRIDGE MASS SUE ANDERSON OF THE CENTRAL AMERICA SOLIDARITY ASSOCIATION AND OTHER NAFTA FOES CALLED MASSACHUSETTS REP ED MARKEY'S LOCAL OFFICE TO URGE THE DEMOCRAT TO VOTE AGAINST NAFTA SHE VIEWED IT AS THE LAST TIME TO SWAY UNDECIDED VOTES THAT EFFORT TOO FAILED MR MARKEY SAID YESTERDAY HE WILL SUPPORT THE PACT THE WHITE HOUSE SCRAMBLING TO SHORE UP SUPPORT APPARENTLY WAS BUOYED BY THE WEEKEND AND IN AN EXPRESSION THAT MAY TURN OUT TO BE LITTLE MORE THAN WISHFUL THINKING WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SAID LAWMAKERS AT A DINNER SUNDAY NIGHT TOLD THE PRESIDENT OF A SEA CHANGE OUT IN THEIR DISTRICTS SOME LAWMAKERS DID FEEL ANTINAFTA HEAT OVER THE WEEKEND I HAVE NEVER HEARD FROM CONSTITUENTS ON ANY ISSUE IN SUCH NUMBERS AS I HAVE THE LAST FEW DAYS SAID REP ROBERT TORRICELLI D NJ WHO ANNOUNCED HIS NO VOTE YESTERDAY MR TORRICELLI HEARD FROM BOTH SIDES OF THE NAFTA FIGHT BUT CITED OPPOSITION FROM HISPANIC AMERICANS AND INVOKED SOLIDARITY WITH THE LABOR MOVEMENT AS THE GRANDSON OF STEEL AND TEXTILE WORKERS IT IS SOMETHING I CANNOT IN GOOD CONSCIENCE BE A PARTY TO HE SAID SINGLING OUT THE PACT'S FAILURE TO ASSURE COLLECTIVE BARGAINING RIGHTS FOR MEXICAN WORKERS THE ANTINAFTA EFFORT DIDN'T APPEAR TO GAIN MOMENTUM YESTERDAY CARRYING ANTINAFTA PLACARDS ABOUT 100 OR SO MEMBERS OF ROSS PEROT'S UNITED WE STAND AMERICA GROUP CONGREGATED ON THE LAWN IN FRONT OF THE CAPITOL'S WEST FRONT YESTERDAY AFTERNOON IN AN ATTEMPT TO CONJURE UP ANTITREATY FERVOR BUT THEIR SMALL NUMBERS AND QUIET SPEECHES REFLECTED A MOOD OF SOMBERNESS RATHER THAN RAGE AT A MEETING IN LONG ISLAND NY OVER THE CONGRESSIONAL RECESS PSYCHOLOGY PROFESSOR MINNA BARRETT PRESENTED REPUBLICAN REP RICK LAZIO WITH DATA THAT SHE SAID SHOWED AMERICAN WOMEN WOULD FACE A HIGHER RISK OF BREAST CANCER IF NAFTA PASSES SHE WARNED THAT UNDER NAFTA MORE FOODS WITH CANCERCAUSING TOXICS WOULD FLOOD INTO THE US FROM MEXICO HE SAID HE WOULD CHANGE HIS MIND IF WE COULD SHOW THE LINK SHE SAYS BUT AS OF YESTERDAY REP LAZIO HADN'T TIPPED HIS HAND TO THE OPPOSITION IN AKRON THE WEEKEND TARGET WAS DEMOCRATIC REP THOMAS SAWYER A FENCESITTER PRESIDENT CLINTON IS TRYING TO WOO TO THE PRONAFTA CAMP OFFICES OF ONE LOCAL ANTINAFTA GROUP FEATURED A HANDDRAWN POSTER TONIGHT ON DISCOVERY TOM SAWYER MAN OR JELLYFISH THERE WAS CLEARLY PLENTY OF PASSION THOSE THAT SHOWED UP FOR THE ANTINAFTA RALLY AND MEETING HERE SHOWED THAT PLACARDS HAD BITING MESSAGES SUCH AS IF PROTECTIONISM IS SO BAD WHY DOES JAPAN HAVE A TRADE SURPLUS HELLO NAFTA GOODBYE AWYER AND SAWYER ON NAFTA 'CAN'T DECIDE UNTIL I SEE THE SIZE OF THE BRIBE DAVID SAIN OF OHIO CITIZEN ACTION A LOBBYING GROUP WORKED A WEST AKRON NEIGHBORHOOD MR SAWYER REPRESENTS WITH DOORTODOOR CALLS INITIALLY MR SAIN FOCUSED ENTIRELY ON A HEALTHCARE PITCH NEGLECTING TO MENTION A PLANNED ANTINAFTA ARGUMENT OOOPS I FORGOT THE 38YEAROLD SAID STABBING HIS MILWAUKEE BREWERS UMBRELLA TO THE GROUND HE SUBSEQUENTLY PICKED UP THE DITCHNAFTA APPEAL BUT TO LITTLE AVAIL AFTER ABOUT FIVE HOURS MR SAIN AND TWO OTHER CANVASSERS BROUGHT HOME ONLY TWO ANTINAFTA LETTERS OUT OF 113 CONTACTS AN ANTINAFTA PROTEST RALLY PRIOR TO THE AKRON TOWN HALL MEETING WASN'T MUCH BETTER ABOUT 200 PEOPLE LINED UP OUTSIDE MR SAWYER'S OFFICE ON WOLF LEDGES PARKWAY SHAKING AMERICAN FLAGS AND HANDMADE PLACARDS AT THE ONCOMING TRAFFIC OF A FEW DOZEN CARS THE OBJECT OF THEIR PROTEST MR SAWYER DIDN'T SHOW UP UNITED WE STAND AMERICA DIDN'T MUSTER MUCH PRESENCE AT THE WEEKEND ANTINAFTA EVENTS IN AKRON ONE OF ITS LOCAL OFFICIALS EDDIE PLOTTS DIDN'T KNOW THE NAMES OF THE FEW PEROT SUPPORTERS WHO SHOWED UP THEY'RE NEW MEMBERS HE EXPLAINED CALIFORNIA EXGOVERNOR JERRY BROWN'S ANTINAFTA GROUP WE THE PEOPLE ALSO DELIVERED ONLY A FEW LOCAL MEMBERS I EXPECTED MORE PEOPLE SAID PAMELA MAUGHAN A 49YEAROLD IMPERIAL ELECTRIC CO FACTORY WORKER AND A FEISTY NAFTA FOE WHO BROUGHT ALONG A NINEYEAROLD GRANDSON WAVING A US FLAG PEOPLE FEEL MAYBE THAT IT JUST DOESN'T MATTER ANYMORE AFTER THE TOWN HALL MEETING SHANNON SHAFFER A UNIVERSITY OF AKRON STUDENT WHO SPEARHEADED ORGANIZATION OF THE EVENT HASSLED RICH SWIRSKY HEAD OF CITIZEN ACTION'S AKRON OFFICE WHERE WERE YOUR THOUSANDS OF MEMBERS 9311160140 931116 MARKETING & MEDIA MARKETSCAN PASTA BECOMES A SOFT SPOT FOR BORDEN INC BY SUEIN L HWANG BORDEN INC'S PASTA BUSINESS ONCE THE BRIGHT SPOT IN THE COMPANY'S VAST BUT TROUBLED PORTFOLIO IS IN HOT WATER IN LESS THAN A YEAR BORDEN'S ASSORTMENT OF DRY PASTAS HAS SUSTAINED MARKETSHARE LOSSES SO SEVERE THAT BY ONE MEASURE THE COMPANY HAS LOST ITS RANK AS THE NO 1 PASTASELLER IN AMERICA A TITLE BORDEN HAS HELD SINCE THE MID1980S LOSING THE TOP SPOT WOULD REPRESENT AN ESPECIALLY SERIOUS BLOW TO BORDEN WHICH IS A STRUGGLING ALSORAN IN A HOST OF OTHER CATEGORIES SUCH AS CHEESE AND SALTY SNACKS UNLIKE THOSE CATEGORIES HOWEVER BORDEN'S PROBLEMS IN PASTA WERE LARGELY OF ITS OWN MAKING MOSTLY TO BLAME IS BORDEN'S FLAWED STRATEGY OF TRANSFORMING ITS BESTSELLING CREAMETTE INTO A NATIONAL BRAND INDUSTRY EXECUTIVES SAY THAT BORDEN GREATLY UNDERESTIMATED CONSUMERS' LOYALTY TO REGIONAL BRANDS THEY ALSO NOTE THAT CREAMETTE WHICH IS POPULAR IN THE MIDWEST HAD A BLAND MIDDLEBROW IMAGE THAT DIDN'T APPEAL TO CONSUMERS IN OTHER AREAS OF THE COUNTRY THE PRESIDENT OF BORDEN'S PASTA GROUP RESIGNED LAST AUGUST TWO MONTHS BEFORE THE COMPANY REPORTED THAT THE COMPANY'S THIRDQUARTER OPERATING PROFIT SANK BY TWOTHIRDS TO 562 MILLION WHILE SALES DROPPED 9 TO 169 BILLION IN THE 12 WEEKS ENDED SEPT 12 DOLLAR SALES OF THE COMPANY'S DRY PASTAS EXCLUDING IMPORTS THAT BORDEN DISTRIBUTES FELL NEARLY 9 TO 634 MILLION WHILE MARKET SHARE DECLINED MORE THAN THREE PERCENTAGE POINTS TO 243 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE WHILE SALES OF HERSHEY FOODS CORP'S PASTAS WHICH INCLUDE REGIONAL BRANDS RONZONI SAN GIORGIO AND AMERICAN BEAUTY WERE FLAT AT 655 MILLION IN THE 12WEEK PERIOD THE COMPANY STILL SURPASSED BORDEN TO TAKE THE LEAD IN DOLLAR MARKET SHARE BORDEN STILL LEADS IN UNIT VOLUME SHARE CPC INTERNATIONAL INC WHICH SELLS THE MUELLER'S BRAND POSTED A 5 INCREASE IN SALES TO 298 MILLION AND ITS MARKET SHARE INCHED UP 03 POINT TO 114 BORDEN EXECUTIVES CONCEDE THAT THE COMPANY'S EFFORTS TO EXPAND CREAMETTE TO NEW MARKETS A FEW YEARS AGO WEAKENED ITS OTHER REGIONAL BRANDS IN SOME CASES BORDEN REMOVED SOME VARIETIES OF A LOCAL FAVORITE TO MAKE SPACE FOR CREAMETTE ON GROCERY SHELVES BY CONCENTRATING ON CREAMETTE WE DID LOSE SOME OF OUR MARKET PRESENCE WITH OUR REGIONAL BRANDS SAYS RUSS MENTZER THE NEWLY APPOINTED PRESIDENT OF BORDEN'S PASTA UNIT CREAMETTE WAS BEING MOVED FROM ITS HOME BASE AND IT WASN'T AS STRONG A FRANCHISE AS A REGIONAL BRAND WOULD HAVE BEEN HE ADDS THAT BORDEN WHICH DIDN'T NOTICE MARKETSHARE LOSSES UNTIL APRIL OF THIS YEAR WORSENED THE SITUATION BY CUTTING ADVERTISING AND PROMOTIONAL SPENDING FOR ALL ITS PASTAS INDUSTRY EXECUTIVES SAY BORDEN HAS BEEN HURT PARTICULARLY IN NEW ENGLAND WHERE ITS PRINCE BRAND ONCE REIGNED SUPREME BOSTON FOR EXAMPLE WAS SO LOYAL TO PRINCE THAT BORDEN SALESPEOPLE BOASTED THAT WEDNESDAY IS PRINCE SPAGHETTI DAY TO GAIN SHELF SPACE THEY PUT CREAMETTE IN AND REMOVED SOME PRINCE ITEMS SAYS C MICKEY SKINNER PRESIDENT OF HERSHEY'S PASTA GROUP IT OPENED DOORS FOR US HERSHEY WHICH INTRODUCED ITS RONZONI BRAND TO BOSTON TWO YEARS AGO MANAGED TO INCREASE ITS SHARE OF THE BOSTON MARKET BY 11 POINTS TO 129 IN THE 52 WEEKS ENDED SEPT 12 ACCORDING TO INFORMATION RESOURCES BORDEN'S EXPERIENCE SEEMS TO CONFIRM THE STRONG REGIONALITY OF THE PASTA BUSINESS WHILE EXECUTIVES CONCEDE THAT THERE'S VERY LITTLE QUALITATIVE DIFFERENCE BETWEEN MOST PASTA BRANDS CONSUMERS FEEL STRONG LOYALTY TO THE BRANDS THEY GREW UP WITH PEOPLE STILL BUY THE PASTA THEIR MOTHERS DID SAYS MAX BUSETTI OF FOOD INDUSTRY NEWSLETTER IN ALEXANDRIA VA IF THE PRICE IS THE SAME THEY'LL STICK WITH THEIR REGIONAL BRAND LAUREN STANLEY A NEW YORK ADVERTISING EXECUTIVE FAITHFULLY BUYS HERSHEY'S RONZONI FOR HER FAVORITE MEAL OF RIGATONI I FEEL SAFE WITH IT I TRUST IT SHE SAYS I'M NOT A COOK BUT I KNOW IT WILL ALWAYS TASTE THE SAME MS STANLEY REFUSES TO BUY CREAMETTE MAINLY BECAUSE OF ITS NAME I WAS NEVER SURE IT WAS A REAL PASTA SHE SAYS IT SOUNDS LIKE IT HAS SOME GROSS INGREDIENT INDEED IN A CATEGORY WHERE MOST BRANDS ARE PRETTY MUCH THE SAME MANY FEEL THE CREAMETTE NAME IS A PARTICULAR DISADVANTAGE CREAMETTE ISN'T A NAME THAT ADDS EITHER TO A PASTA IMAGERY OR AN ITALIAN IMAGERY SAYS CLIVE CHAJET CHAIRMAN OF LIPPINCOTT & MARGULIES INC AN IDENTITYIMAGE CONSULTING FIRM IT SOUNDS LIKE A DAIRY PRODUCT THE NAME CREAMETTE REFERS TO THE CREAM OF THE WHEAT THAT IS USED TO MAKE IT TO GET BACK ON TRACK BORDEN IS WORKING FURIOUSLY TO UNDO THE STRATEGY IT HAD BEEN FOLLOWING SINCE THE LATE1980S MR MENTZER SAYS THE COMPANY PLANS SIGNIFICANT INCREASES IN MARKETING AND PROMOTIONAL SUPPORT BEHIND MANY OF ITS REGIONAL BRANDS WE HAVE VERY STRONG REGIONAL EQUITIES WITH CONSUMERS AND THAT'S THE BEST WAY TO COMPETE IN THIS CATEGORY HE SAYS BORDEN IS ALSO CREATING MORE MODERN PACKAGING FOR PRINCE AND CREAMETTE AND HAS RECENTLY LAUNCHED TELEVISION ADVERTISING BEHIND BOTH BRANDS BORDEN'S PAINFUL LESSON ISN'T A NEW ONE TO RIVAL CPC WHOSE MUELLER'S BRAND IS SOLD MAINLY IN THE EASTERN HALF OF THE US IN OUR RESEARCH WE FOUND THE MUELLER'S NAME REALLY DOESN'T MEAN ANYTHING TO PEOPLE WEST OF THE MISSISSIPPI SAYS LAWRENCE HATHAWAY PRESIDENT OF CPC'S BEST FOODS GROCERYPRODUCTS GROUP WE DECIDED IT WASN'T WISE FOR US TO EXPAND INTO OTHER MARKETS 9311160139 931116 THREE HMOS EVALUATE THEMSELVES BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL CHOOSING A HEALTHMAINTENANCE ORGANIZATION IT'S TIME FOR A LITTLE COMPARISON SHOPPING NEW QUALITY SCORE CARDS ARE STARTING TO LET THE PUBLIC ASSESS PATIENT CARE AT THREE OF THE LARGEST HMOS IN THE COUNTRY INTERNALLY COMPILED SCORE CARDS HAVE BECOME AVAILABLE LATELY FOR HEALTH PLANS RUN BY KAISER PERMANENTE OAKLAND CALIF UNITED HEALTHCARE CORP MINNEAPOLIS AND US HEALTHCARE INC BLUE BELL PA EACH OF THE HMOS COVERS MORE THAN ONE MILLION PEOPLE A SIDEBYSIDE COMPARISON SHOWS THAT NONE OF THE THREE PLANS CONSISTENTLY OUTPACES THE OTHER TWO BUT EACH HAS SIGNIFICANT EDGES ON CERTAIN SERVICES UNITED HEALTHCARE FOR EXAMPLE IS THE MOST FASTIDIOUS ABOUT PROVIDING EYE EXAMS FOR DIABETICS KAISER SCORES BEST IN DELIVERING BABIES WITHOUT RESORTING TO CAESAREAN SECTIONS AND US HEALTHCARE GETS TOP MARKS FOR PROVIDING SOME COMMON CHILDHOOD IMMUNIZATIONS MAKING SUCH DATA WIDELY AVAILABLE IS A MAJOR GOAL OF THE CLINTON ADMINISTRATION AS PART OF ITS PROPOSAL FOR HEALTHSYSTEM REFORM UNTIL NOW THERE HASN'T BEEN MUCH STANDARDIZED DATA AVAILABLE ON HOW DIFFERENT HEALTH PLANS TREAT THEIR PATIENTS REPORT CARDS SHOULD HELP ALL AROUND IN IMPROVING THE QUALITY OF CARE SAYS WALTER ZELMAN A SENIOR HEALTHCARE POLICY ADVISER TO THE WHITE HOUSE CONSUMERS WILL KNOW MORE ABOUT HOW THEIR HEALTH PLANS ARE DOING AND THEY WILL BE BETTER ABLE TO CHOOSE BETWEEN DIFFERENT SETS OF PROVIDERS BENEFITS MANAGERS AT BIG COMPANIES ARE ALSO KEENLY INTERESTED IN SUCH HEADTOHEAD COMPARISONS ALLEN SCHAFFER NATIONAL MEDICAL DIRECTOR FOR CIGNA CORP'S HEALTH PLANS SAYS THAT IN A RECENT MEETING THE MESSAGE CAME THROUGH LOUD AND CLEAR THAT BENEFITS MANAGERS AT INTEL CORP GTE CORP AND PACIFIC TELESIS GROUP WANTED DIRECTLY COMPARABLE MEASUREMENTS OF DIFFERENT HMOS' QUALITY OF CARE OVER THE NEXT YEAR AT LEAST A DOZEN OTHER HEALTH PLANS ARE EXPECTED TO RELEASE THEIR OWN QUALITY SCORE CARDS AFTER SOME DISAGREEMENT ABOUT WHAT MEASURES TO USE MOST HMOS ARE OPTING FOR A 60ITEM FORMAT KNOWN AS HEDIS 20 WHICH IS CHAMPIONED BY AN HMO INDUSTRY GROUP KNOWN AS THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE GAUGING QUALITY REMAINS CONTROVERSIAL THOUGH PARTICULARLY BECAUSE DATA FOR THE CURRENT CROP OF SCORE CARDS WAS COMPILED BY THE HMOS THEMSELVES EXECUTIVES AT ALL THREE HEALTH PLANS SAY THEY USED RIGOROUS STATISTICAL METHODS MANY OF WHICH ARE SPECIFIED IN THE HEDIS 20 PROCESS STILL THEY ACKNOWLEDGED THAT IT WOULD BE BETTER TO RELY ON NEUTRAL OUTSIDERS TO CRUNCH THE DATA OVER TIME PREDICTED STEVE ZATZ HEAD OF US HEALTHCARE'S QUALITY EFFORTS THE HMO INDUSTRY WILL BRING IN THE EQUIVALENT OF FINANCIAL ACCOUNTING FIRMS TO PREPARE QUALITY DATA IT WILL BE A GREAT JOB FOR SOME CONSULTANTS US HEALTHCARE AND KAISER USED RANDOM SAMPLES OF 400 TO 600 PATIENTS TO COMPUTE THEIR SCORE CARDS THAT MEANS THAT RESPONSES TYPICALLY HAVE A MARGIN OF ERROR OF THREE OR FOUR PERCENTAGE POINTS IN KAISER'S CASE ITS SCORE CARD COVERS ITS NORTHERN CALIFORNIA REGION WITH ABOUT 22 MILLION MEMBERS US HEALTHCARE'S SCORE CARD COVERS PENNSYLVANIA WITH 650000 MEMBERS UNITED HEALTHCARE SAYS ITS SURVEY IS BASED ON ALL 175000 PLAN MEMBERS IN RHODE ISLAND AND MASSACHUSETTS WHILE THE THREE REGIONS AREN'T IDENTICAL THEY ARE BROADLY COMPARABLE IN PERCAPITA INCOME AND URBAN/RURAL MIX IN TRYING TO MEASURE QUALITY OF CARE THE HMO INDUSTRY FOR NOW IS LOOKING MOST CLOSELY AT PREVENTIVE TREATMENTS FOR HEALTHY PEOPLE SUCH AS IMMUNIZATIONS AND CHOLESTEROL SCREENINGS OVER TIME HMO EXECUTIVES SAY THEY WILL WANT TO POST DATA CONCERNING THE VERY ILL TOO KAISER HAS ALREADY BEGUN GATHERING SUCH ITEMS AS SURVIVAL TIMES FOR PATIENTS WITH AIDS OR BREAST CANCER BUT SUCH MEASURES AREN'T YET WIDELY FOLLOWED ELSEWHERE AT THE WHITE HOUSE MR ZELMAN PREDICTS THAT AS QUALITY SCORE CARDS BECOME MORE COMMON THEY MAY PLAY AN IMPORTANT ROLE IN PUSHING LAGGARD DOCTORS AND HEALTH PLANS TO DO BETTER HE SAYS HE CAN ENVISION SITUATIONS IN WHICH PEDIATRICIANS WHO AREN'T IMMUNIZING ALL THEIR INFANT PATIENTS WOULD GET CALLS FROM HMOS BECAUSE OF CONCERN THAT THE HEALTH PLAN'S OVERALL QUALITY RATING WOULD BE JEOPARDIZED A LITTLE OF THAT DYNAMIC MAY ALREADY BE AT WORK COMMENTING ON HIS GROUP'S CAESAREAN RATE US HEALTHCARE'S DR ZATZ SAID I KNOW IT'S HIGH BUT WE'RE WORKING TO BRING IT DOWN 9311160138 931116 PSYCHOECONOMICS CAN AN ENTIRE STATE HAVE AN IDENTITY CRISIS YES IF IT'S CALIFORNIA LONG RECESSION PUTS REGIONS AT ODDS CALLS RESURFACE TO SPLIT IN TWO OR THREE DARK TIMES HIT SUNNYVALE BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL ORLAND CALIF WITH THE ECONOMY FINALLY STARTING TO PERCOLATE IN MANY PARTS OF THE NATION HOW IS THE GOLDEN STATE COPING WITH ITS WORST ECONOMIC STRAINS SINCE THE DEPRESSION SUNRISE IN CALIFORNIA'S SACRAMENTO VALLEY OFFERS A CLUE OVER EGGS AND COFFEE AT THE COTTAGE CAFE IN THIS NORTHERN AGRICULTURAL COMMUNITY LEONARD STEINWAND A HEAVYEQUIPMENTPARTS SALESMAN TALKS ABOUT FELLOW CALIFORNIANS IN THE SOUTH THEY'RE IN THEIR OWN WORLD DOWN THERE IN LOS ANGELES IT'S CRAZY RANCHER CURT HUBBARD SUGGESTS EARNESTLY TO NODDING NEIGHBORS WE'D BE BETTER OFF IF WE HAD MORE SAY IN WHAT WE DO IT MAY NEVER HAPPEN BUT IT WOULD HELP TO SPLIT THE STATE SOME 350 MILES SOUTH THERE IS SIMILAR SENTIMENT IN THE HALFLIGHT OF A RADIO STUDIO IN BAKERSFIELD AN OIL AND AGRICULTURAL CENTER TALKSHOW HOST BILL MANDERS LISTENS TO A STREAM OF CALLERS TAKE APART CALIFORNIA ONE CALLER FOR INSTANCE WANTS TO SEE TWO NEW STATES ONE EAST AND ONE WEST OF THE SAN ANDREAS FAULT THAT WAY WHEN THE BIG EARTHQUAKE COMES WE GET RID OF ALL THOSE LOONIES ON THE COAST CALL IT A CRISIS OF IDENTITY A PSYCHOECONOMIC COMPLEX THE NATION'S MOST POPULOUS STATE NOW FLOUNDERING IN ITS FOURTH YEAR OF ECONOMIC DISTRESS IS AT ODDS WITH ITSELF WITH NEARLY 32 MILLION PEOPLE DIVIDED EVER MORE VISIBLY BY REGION RACE LANGUAGE AND ECONOMIC FORTUNE INTANGIBLE TOUCHSTONES HAVE DISAPPEARED A BEACH BOYS IMAGE OF A SCRUBBED AND HOMOGENEOUS POPULATION IS GONE SO TOO IS THE OLD GOLD RUSHSTYLE DREAM OF SUDDEN RICHES EVEN GROWTH ONCE AN ARTICLE OF FAITH FOR MANY HERE HAS TAKEN ON A DARK QUALITY WE HAVE LOST OUR SENSE OF WHO WE ARE AS CALIFORNIANS SAYS UNIVERSITY OF SOUTHERN CALIFORNIA PROF KEVIN STARR PERHAPS THE REGION'S PREEMINENT HISTORIAN IT'S ALMOST SCARY SCARY TOO IS THE DEPTH AND DURATION OF THE SLUMP HERE ECONOMISTS FIGURE THAT IT MAY BE NEARLY THE TURN OF THE CENTURY BEFORE THE STATE'S ECONOMY REGAINS LEVELS LAST SEEN IN 1990 FORCES OF CHANGING POPULATION ECONOMIC DECLINE AND LOCAL POLITICAL GRIDLOCK HAVE COINCIDED TO AFFECT EVERY CORNER OF CALIFORNIA NOT JUST THE LOS ANGELES AREA WHERE SO MUCH ATTENTION HAS FOCUSED THERE IS AN ELEMENT OF COMEUPPANCE IN THE WOES OF THE ONCE SEEMINGLY INDOMITABLE NATIONSTATE OWNER OF THE WORLD'S EIGHTHLARGEST ECONOMY AND ANALYSTS NOTE THAT CALIFORNIANS HAVE ALWAYS HAD THEIR DIFFERENCES NORTH AND SOUTH URBAN AND RURAL BUT WIDENING EDDIES IN THE SOCIAL AND ECONOMIC WATERS HERE SUGGEST A CHANGE IN CALIFORNIA UNMATCHED PERHAPS SINCE WAVES OF WESTBOUND AMERICANS ARRIVED IN THE 1930S AND AFTER WORLD WAR II ALL THIS MEANS MUCH FOR THE REST OF THE NATION ECONOMICALLY CALIFORNIA ACCOUNTS FOR WELL OVER HALF OF ALL ECONOMIC ACTIVITY WEST OF THE ROCKIES AND ABOUT AN EIGHTH OF THE ENTIRE COUNTRY'S POLITICALLY THE STATE IS A BELLWETHER AN IDEOLOGICALLY FRACTURED GIANT WHOSE CONGRESSIONAL REPRESENTATION SURPASSES THAT OF THE 21 SMALLEST STATES COMBINED MORE SUBTLY CALIFORNIA HAS BEEN THE PLACE WHERE VECTORS OF AMERICAN LIFE FROM FREEWAYS AND SUBURBIA TO SURFING AND LSD HAVE SPRUNG TO PROMINENCE THERE IS A SENSE ABOUT CALIFORNIA WROTE NOVELIST JOAN DIDION MORE THAN TWO DECADES AGO THAT THINGS HAD BETTER WORK HERE BECAUSE HERE BENEATH THAT IMMENSE BLEACHED SKY IS WHERE WE RUN OUT OF CONTINENT IN THE MINDS OF MANY NOW HOWEVER IT ISN'T WORKING THE POSSIBILITY OF DIVIDING THE STATE WAS PUT TO VOTERS IN SOCALLED ADVISORY BALLOTS IN 31 NORTHERN COUNTIES LAST YEAR IN 27 OF THE COUNTIES THE VOTERS APPROVED SPLITTING UP CALIFORNIA AND EARLIER THIS YEAR THE STATE ASSEMBLY PASSED A BILL AUTHORIZING ANOTHER NONBINDING VOTE STATEWIDE THIS TIME TO BE HELD NEXT YEAR THE MEASURE WHICH CALLS FOR DIVIDING INTO THREE SEPARATE STATES NEEDS THE APPROVAL OF THE STATE SENATE AND GOV PETE WILSON BOTH UNLIKELY FOR NOW ULTIMATELY THE NATION'S STATE LEGISLATURES AND CONGRESS MUST MAKE ANY CHANGE IN STATEHOOD STILL SURVEYS AS FAR BACK AS 1959 BY THE FIELD POLL HAVE FOUND A SMALL BUT STEADILY INCREASING MINORITY OF CALIFORNIANS STATEWIDE FAVORING A SPLIT AND THE NUMBER HAS JUMPED OF LATE A SURVEY BY THE STATEWIDE POLLING SERVICE LAST MONTH FOUND 43 OF DECIDED VOTERS IN THE NORTH FAVORED DIVIDING THE STATE IN TWO IN THE SOUTH 26 SAID YES THE PRINCIPAL PROPONENT OF ALL MEASURES TO SPLIT THE STATE REPUBLICAN ASSEMBLYMAN STAN STATHAM SAYS THERE SOON WILL BE MORE SERIOUS DISCUSSION ABOUT THIS THAN AT ANY TIME IN ANYONE'S LIVING MEMORY HE ARGUES THAT THE STATE IS SO BIG THAT ONE GOVERNMENT NO LONGER SERVES RESIDENTS WELL INDEED MR STATHAM NOTES THAT AS ONE OF 80 MEMBERS OF THE ASSEMBLY HE REPRESENTS ALMOST AS MANY PEOPLE AS THE GOVERNOR OF WYOMING ARGUABLY THERE ARE MANY CALIFORNIAS BUT THE TRADITIONAL AND CLEARLY DEFINED REGIONS ARE SIMPLY THE NORTH AND SOUTH THE TEHACHAPI MOUNTAINS AN EASTWEST RANGE THAT IS THE HISTORICAL DIVIDE BETWEEN NORTHERN AND SOUTHERN CALIFORNIA NOW MARK TWO EVERMOREDIVERSE WORLDS BETWEEN THESE AREAS AND EVEN WITHIN THEM THERE IS AN INCREASING REGIONAL DIVERGENCE SAYS JEFFREY LUSTIG DIRECTOR OF THE CENTER FOR CALIFORNIA STUDIES AT CALIFORNIA STATE UNIVERSITY SACRAMENTO THE NORTH HAS TWOFIFTHS OF THE STATE'S POPULATION OCCUPYING THREEQUARTERS OF THE LAND THE SOUTH HAS THE OTHER THREEFIFTHS OF THE POPULATION FILLING THE MORE DENSELY URBAN AREAS IN THE REMAINING QUARTER OF THE STATE IN NORTHERN CALIFORNIA ABOUT 35 OF RESIDENTS ARE NONWHITE OR HISPANIC IN THE SOUTH ALMOST HALF ARE TO THE NORTH ONE PERSON IN SIX IS FOREIGNBORN IN THE SOUTH THE RATIO IS ONE IN FOUR ROUGHLY 6 OF NORTHERN HOUSEHOLDS SPEAK LITTLE OR NO ENGLISH THE PROPORTION IS NEARLY 10 IN THE SOUTH EVEN EDUCATION AND CRIMINALITY SHOW DISPARITIES NORTHERN CALIFORNIANS ARE 10 MORE LIKELY TO HAVE A COLLEGE EDUCATION SOUTHERN CALIFORNIANS ARE NEARLY TWOTHIRDS MORE LIKELY TO BE VICTIMS OF VIOLENT CRIME IN THE DWINDLING PIE CAUSED BY RECESSION HOWEVER THE DIFFERENCE THAT COUNTS MOST IS ECONOMIC ACTIVITY THE ENTIRE STATE SUFFERS FROM A MORIBUND COMMERCIALREALESTATE MARKET THOUGH IT IS MORE PRONOUNCED IN THE SOUTH AND A HOUSING MARKET THAT ONLY RECENTLY HAS SHOWN SIGNS OF LIFE BUT ON THE WHOLE SOUTHERN CALIFORNIA HAS BEEN FARING WORSE THAN THE NORTH WHICH HAS GENERALLY LOWER UNEMPLOYMENT RATES IN ITS BIG URBAN AREAS THE SOUTH TROUBLED BY LAST YEAR'S LOS ANGELES RIOTS AND SHRINKAGE IN THE AEROSPACE INDUSTRY HAS ACCOUNTED FOR ABOUT TWOTHIRDS OF CALIFORNIA'S ESTIMATED LOSS IN THE RECESSION OF MORE THAN 570000 JOBS THUS CALIFORNIA'S MOST POPULOUS REGION IS ALSO ITS GLOOMIEST SHAKEN BY THE DEADLIEST URBAN UNREST IN A CENTURY AND RECENT FIRES YET WHILE NATIONAL ATTENTION OFTEN FOCUSES ON LOS ANGELES IT IS NOT LITERALLY TRUE THAT LOS ANGELES IS A BIG SINKHOLE THAT IS DRAGGING THE REST OF THE STATE DOWN SAYS LARRY J KIMBELL DIRECTOR OF THE UCLA BUSINESS FORECASTING PROJECT AN ARM OF THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE NATION'S SECONDLARGEST CITY HOWEVER IS SEEN AS A CANCER THAT THE REST OF CALIFORNIA WOULD LIKE TO GET RID OF HE NOTES JOBS ARE BEING LOST IN THE NORTH AS WELL LATELY AT RATES SOMEWHAT CLOSER TO THE SOUTH'S DOWNWARD SPIRAL HOUSE SALES IN THE SAN FRANCISCO BAY AREA HAVE PLUNGED THIS YEAR AFTER A MODEST CLIMB LAST YEAR CONSULTANTS TRW REDI PROPERTY DATA PROJECT THAT BAYAREA SALES THIS YEAR WILL BE OFF 92 FROM LAST YEAR WHILE THE SALES IN THE SOUTH AFTER A FAR DEEPER PLUNGE IN PAST YEARS ARE EXPECTED TO DROP 56 THERE IS NO DOUBT THAT THE RECESSION HAS BEEN SPREADING OVER TIME SAYS FREDERICK L CANNON VICE PRESIDENT AND SENIOR ECONOMIST AT BANK OF AMERICA IN SAN FRANCISCO AND THAT TOO IS TEARING AT THE FABRIC OF CALIFORNIA SUNNYVALE'S PRETTY LEAFY WEST MCKINLEY STREET A PRIVATE RELIEF AGENCY CALLED SUNNYVALE COMMUNITY SERVICES OCCUPIES A CONVERTED SCHOOL SUNNYVALE IS THE CITY THAT BILLS ITSELF AS THE HEART OF SILICON VALLEY AN ECONOMIC CROWN JEWEL OF CALIFORNIA PRESIDENT CLINTON VISITED CITY HALL HERE NOT LONG AGO TO DECLARE THIS ELECTRONICS CENTER ONE OF THE BESTRUN CITIES IN AMERICA BUT HERE AT THE SOCIALSERVICES AGENCY THERE ARE OTHER THOUGHTS OUR BUSINESS IS BOOMING AND THAT'S BAD SAYS NANCY TIVOL THE AGENCY'S EXECUTIVE DIRECTOR LOOKING AT A WALL OF GROCERIES READY FOR DISTRIBUTION TO HUNDREDS OF NEEDY FAMILIES DEMAND HAS GROWN 50 IN A YEAR A REGIONAL RETRAINING CENTER FOR THE UNEMPLOYED HAS A TWOYEAR WAITING LIST MORE THAN 100 HOMELESS PEOPLE SLEPT IN THE CITY'S ARMORY ON CHILLY NIGHTS LAST WINTER MORE ARE EXPECTED THIS YEAR LOCKHEED CORP'S MISSILES AND SPACE CO UNIT BY FAR THE CITY'S LARGEST EMPLOYER HAS IN RECENT YEARS LAID OFF 10000 SOME 1350 ADDITIONAL CUTS WILL BE MADE BY THE END OF NEXT YEAR FROM ITS 14400PERSON PAYROLL LIKEWISE AMDAHL CORP THE SECONDLARGEST EMPLOYER WILL TERMINATE HUNDREDS OF EMPLOYEES IN COMING MONTHS PILING ON TOP OF NEARLY 2000 JOBS ELIMINATED IN RECENT MONTHS DOZENS OF OTHER COMPANIES ARE CUTTING PAYROLLS AND THE LOCAL NAVAL BASE WILL CLOSE NEXT YEAR COMPANIES MAY BE STAYING HERE BUT THEY AREN'T GROWING HERE SAYS MICHAEL S MALONE COAUTHOR OF THE VIRTUAL CORPORATION AND LONGTIME OBSERVER OF SILICON VALLEY AT SUNNYVALEBASED ADVANCED MICRO DEVICES INC FOR INSTANCE CHAIRMAN WJ SANDERS III SAYS THAT JUST OVER THREEQUARTERS OF THE COMPANY'S 450 MILLION IN QUARTERLY REVENUE IS GENERATED BY FACILITIES OUTSIDE SILICON VALLEY I DON'T SEE THAT CHANGING ANY TIME SOON HE SAYS WE'RE BUILDING ALL OUR FUTURE CAPACITY OUTSIDE CALIFORNIA WHERE COSTS TEND TO BE LOWER SUCH THINKING THOUGH SCARCELY UNIVERSAL HAS PROMPTED AN UNPRECEDENTED SCRAMBLE AMONG CALIFORNIA'S LOCAL GOVERNMENTS TO RETAIN EXISTING INDUSTRY AND ATTRACT NEW BUSINESSES INCLUDING THOSE IN OTHER REGIONS OF CALIFORNIA THE NEW RIVALRY IS BEING FED NOT ONLY BY ECONOMIC NEED BUT BY CHANGES IN THE TAX SYSTEM EVEN AS CITIES AND COUNTIES SCROUNGE FOR INDUSTRY AND JOBS THEY MUST REPLACE BILLIONS IN PROPERTYTAX REVENUE RECENTLY RECLAIMED BY THE STATE GOVERNMENT IN A SQUABBLE OVER DWINDLING TAX INCOME THE UGLY TAX TWIST SAY ANALYSTS IS ROOTED IN 1978'S PROPOSITION 13 WHICH SHARPLY REDUCED LOCALGOVERNMENT POWERS TO TAX PROPERTY AMONG OTHER THINGS LACKING PROPERTYTAX INCOME LOCAL GOVERNMENTS LATELY HAVE BECOME INCREASINGLY RELIANT ON MUCH MORE VOLATILE AND COMPETITIVE SALES TAXES THIS IS THE SUCKER PUNCH BEHIND PROP 13 SAYS DAVID BRODSLY VICE PRESIDENT AND WEST COAST MANAGER OF MOODY'S INVESTORS SERVICE INC WHICH LATELY HAS DOWNGRADED SOME OF CALIFORNIA'S MUNICIPAL DEBT AND ALL STATE ISSUES IF EVER THERE WERE ENTITIES THAT SHOULDN'T RELY MUCH ON SALES TAXES IT'S LOCAL GOVERNMENTS ADDS MR BRODSLY IN EFFECT THE COMBINATION OF GROWTH RECESSION AND TAX LIMITS HAS PITTED CALIFORNIA COMMUNITIES AGAINST ONE ANOTHER WE'RE ALL SEARCHING FOR THE SAME SMALL NUMBER OF FISH SAYS MAYOR CARL ARNESS OF REDDING CALIF SINCE 1980 THIS NORTHERN CALIFORNIA CITY HAS SEEN ITS POPULATION ALMOST DOUBLE TO 76000 ONE OF OUR BEST INDUSTRIES IS GROWTH THE MAYOR SAYS BUT ATTRACTING SUFFICIENT BUSINESS AND JOBS TO GO WITH THE MUSHROOMING RESIDENTIAL BASE IS ALMOST IMPOSSIBLE MR ARNESS ADDS RECALLING A RECENT FAILED BID TO ATTRACT THE WALMART STORES INC DISTRIBUTION CENTER THAT WENT TO NEARBY RED BLUFF IN SOUTHERN CALIFORNIA'S LANCASTER A DISTANT DESERT SUBURB OF LOS ANGELES AN ELABORATE AUTO MALL HAS SPRUNG UP JUST DOWN THE ROAD FROM AN ALMOST IDENTICAL FACILITY IN NEIGHBORING PALMDALE FOSTERING A BITTER BATTLE FOR SALESTAX DOLLARS IN THIS VERY DARK CLOUD THERE MAY BE THE GLIMMERING OF A SILVER LINING SAYS ECONOMIST STEPHEN LEVY DIRECTOR OF THE CENTER FOR THE CONTINUING STUDY OF THE CALIFORNIA ECONOMY MR LEVY SUGGESTS THAT OUT OF CURRENT CONDITIONS THE EMERGENCE OF STRONG REGIONAL INTERESTS WILL BENEFIT CALIFORNIA IN THE LONG RUN REGIONS HE SAYS ARE IMPORTANT BECAUSE FIRMS DON'T LOCATE IN A STATE THEY LOCATE IN REGIONS TO SERVE THAT REGION FOR MUCH OF THIS CENTURY CALIFORNIA HAS OPERATED IN A VERY DIFFERENT MANNER DEPENDING IN NO SMALL PART ON THE FEDERAL PURSE FOR A MAJOR PART OF THE STATE'S ECONOMIC ACTIVITY BUT ADVANCE MICRO DEVICES' MR SANDERS AN OUTSPOKEN CRITIC OF CALIFORNIA'S BUSINESS CLIMATE SAYS THE STATE'S HUGE AEROSPACEDEFENSE SECTOR HAS BEEN PART OF CALIFORNIA'S ECONOMIC UNRAVELING SWATHED IN BUYAMERICA PROTECTIONISM AND GENEROUS GOVERNMENT CONTRACTS AN IMPORTANT PART OF THE STATE'S MANUFACTURING BASE GREW SLOTHFUL HE SAYS IN THE END CALIFORNIA GOT USED TO A STANDARD OF LIVING THAT THE PRODUCTIVITY OF THE STATE COULDN'T SUSTAIN THE ANSWER IN PART IS THAT CALIFORNIA WAS FAR SMALLER THAN TODAY WITH A POPULATION IN 1930 ROUGHLY ONESIXTH TODAY'S THE STATE AND ITS GOVERNMENT HAVE GROWN SO LARGE THAT MANY FEEL THEY NO LONGER CAN FOCUS ON THE REGIONAL ISSUES THAT BIND MOST STATES WHEN YOU GET A POPULATION OF 32 MILLION IT'S PRETTY HARD TO GET AGREEMENT NOTES FORMER STATE SEN REBECCA MORGAN BACKERS AND OPPONENTS OF VOTER INITIATIVES HAVE CONSISTENTLY PLAYED REGIONS AGAINST EACH OTHER NORTHERN VOTERS WERE URGED NOT LONG AGO TO REJECT AUTOINSURANCE MEASURES ON THE BASIS THAT THEY WOULD BE PAYING FOR MORE CRASHPRONE SOUTHERNERS ILLEGAL IMMIGRATION A FAVORED TARGET AS ECONOMIC TIMES HAVE DARKENED IS FAST EMERGING AS PERHAPS THE MOST EXPLOSIVE REGIONAL ISSUE OF ALL POLITICIANS HAVE BEEN QUICK TO NOTE IT GOV WILSON IS CALLING FOR CONSTITUTIONAL CHANGES THAT WOULD BAR CITIZENSHIP TO THE USBORN CHILDREN OF ILLEGAL IMMIGRANTS US SEN BARBARA BOXER IS CALLING FOR THE NATIONAL GUARD TO BE STATIONED AT THE MEXICAN BORDER NONE OF THIS WOULD DIRECTLY SOLVE THE DEEP AND IMMEDIATE PROBLEMS OF CALIFORNIA'S ECONOMY THE DRUBBING TAKEN BY ITS MANUFACTURING SECTOR WHERE ONE IN EIGHT JOBS HAVE DISAPPEARED OR THE PLUNGE IN CONSTRUCTION WHERE ONE IN SIX JOBS ARE GONE OR THE DROP IN SERVICE INDUSTRIES WHERE ONE IN 12 POSITIONS ARE ERASED RECOVERING THIS EMPLOYMENT LIKELY WILL TAKE UNTIL 1997 SAYS LYNN REASER CHIEF ECONOMIST AT FIRST INTERSTATE BANCORP IN LOS ANGELES MOREOVER SAYS MS REASER CALIFORNIA'S INFLATIONADJUSTED PERCAPITA INCOME A STANDARD MEASURE OF INDIVIDUAL WEALTH ISN'T EXPECTED TO SURPASS ITS 1989 PEAK OF 19667 UNTIL THE YEAR 2000 THAT REFLECTS A SWELLING POPULATION MOSTLY IN THE SOUTH WE HAVE TO RUN FASTER JUST TO STAND STILL SAYS MS REASER UNDER SUCH STRESS AND DIFFERING RECOVERY RATES NORTH AND SOUTH MORE FERTILE GROUND IS LAID FOR A FRACTURED FUTURE INCLUDING STATESPLITTING PROPOSALS SUCH AS GOP ASSEMBLYMAN STATHAM'S THESE IDEAS USED TO BE CONSIDERED CRACKPOT NOTIONS SAYS MR STARR THE HISTORIAN BUT THIS IS SERIOUS AS INTRASTATE REGIONS DRIFT APART CALIFORNIA'S OLDER BONDS SEEM TO WITHER THE STATE'S PAST MEANS LITTLE TO A POPULATION OF NEW ARRIVALS FROM INSIDE AND OUTSIDE THE US THE CLIMATE THOUGH STILL AN ATTRACTION HAS NONE OF THE URGENT IMPORTANCE TO AN URBAN POPULATION THAT IT HELD FOR A BOOMING AGRICULTURAL INDUSTRY FIFTY YEARS AGO CALIFORNIA WAS REALLY DIFFERENT FROM THE REST OF THE NATION SAYS POLLSTER MERVIN FIELD BUT THE WORLD HAS RUSHED IN AND THE CALIFORNIA DREAM BECAME THE CALIFORNIA PROBLEM MUCH LIKE OTHER PLACES 9311160137 931116 INFORMATION DISPLAY TECHNOLOGY PITTSBURGH INFORMATION DISPLAY TECHNOLOGY INC SAID IT DROPPED EXPLORATION OF A MERGER WITH ADIENCE INC ADIENCE A CLOSELY HELD MAKER OF REFRACTOR DEVICES FOR THE METALS AND GLASS INDUSTRIES OWNS 80 OF INFORMATION DISPLAY TECHNOLOGY'S COMMON STOCK NEITHER OF THE PITTSBURGHBASED COMPANIES COULD BE REACHED IMMEDIATELY FOR FURTHER COMMENT INFORMATION DISPLAY TECHNOLOGY MAKES WRITING AND PROJECTION SURFACES 9311160136 931116 COMMODITIES OIL PRICES HOLD STEADY DESPITE NEGATIVE NEWS INCLUDING OPEC'S REVISED DEMAND ESTIMATES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM PRICES HELD RELATIVELY STEADY YESTERDAY DESPITE A TRIPLE DOSE OF NEGATIVE NEWS THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES LED THE PARADE OF BEARISH DEVELOPMENTS FOR THE OIL MARKETS BY REVISING DOWNWARD ESTIMATES OF DEMAND FOR ITS OIL THROUGH NEXT YEAR'S FIRST QUARTER ALSO SETTING THE STAGE FOR LOWER PRICES YESTERDAY WERE REPORTS OF RISING NORTHSEAOIL SUPPLIES AND THE ARRIVAL IN NEW YORK OF IRAQI OFFICIALS WHO WILL AGAIN TRY TO TALK THE UNITED NATIONS INTO LIFTING THE BAN AGAINST IRAQ'S OIL EXPORTS OIL PRICES DID DRIFT LOWER EARLY IN THE DAY AS A RESULT OF THESE DEVELOPMENTS BUT RECOVERED IN LATER TRADING CRUDEOIL FUTURES SETTLED HIGHER IN FACT ON THE NEW YORK MERCANTILE EXCHANGE WITH THE DECEMBER CONTRACT UP FOUR CENTS AT 1676 A BARREL SUCH RESILIENCE RECENTLY HAS BEEN RARE FOR OIL PRICES WHICH HAVE BEEN HAMMERED DOWN REPEATEDLY THIS YEAR BY NEGATIVE OPEC NEWS OR OTHER BEARISH REPORTS OR RUMORS ACCORDING TO SOME OIL ANALYSTS THIS COULD MEAN PRICING VOLATILITY IN THE OIL MARKETS MAY BE EASING AT LEAST UNTIL OPEC MEETS NEXT TUESDAY IN VIENNA TOM CURTIS DIRECTOR OF ENERGY RESEARCH FOR THE PEGASUS ECONOMETRIC GROUP IS AMONG THOSE SUGGESTING A LESSENING OF THE SWINGS IN THE PRICE OF CRUDE OIL OVER THE NEXT FEW DAYS IT WILL TRADE IN A FAIRLY CONTAINED RANGE UNTIL THE OPEC MEETING HE SAID SOME OF THE OIL MINISTERS HAVE RECENTLY INDICATED THE NEED TO REVIEW THEIR PRODUCTION CEILING OF 245 MILLION BARRELS A DAY POSSIBLY WITH THE INTENT OF REDUCING IT EVEN THOUGH IT WAS PUT IN PLACE FOR SIX MONTHS AT THEIR LATE SEPTEMBER MEETING ALTHOUGH BY SOME ESTIMATES OPEC CONTINUES TO PRODUCE AS MUCH AS 300000 BARRELS A DAY ABOVE THE CEILING AN AGREEMENT NEXT WEEK TO REDUCE IT FURTHER WOULD SEND A POSITIVE SIGNAL TO THE OIL MARKETS IN THAT REGARD SOME ANALYSTS YESTERDAY SAID OPEC'S LATEST DOWNWARD REVISION IN ITS FORECASTS COULD BE INTERPRETED AS BULLISH RATHER THAN BEARISH FOR THE MARKETS THEY SAID IT GIVES THE OIL MINISTERS YET ANOTHER REASON TO CONSIDER CUTTING PRODUCTION WHEN THEY MEET IN VIENNA IN OPEC'S LATEST FORECASTS THE NEED FOR OIL THAT IT PRODUCES COMBINED WITH THAT DRAWN FROM WORLDOIL INVENTORIES IS ESTIMATED AT 25140000 BARRELS A DAY THAT IS 200000 BARRELS A DAY LESS THAN THE MONTHEARLIER ESTIMATE OF THE WORLD'S FOURTHQUARTER CALL ON OIL PRODUCED BY OPEC AND DRAWN FROM INVENTORIES GRAIN & SOYBEANS CORN PRICES ARE EXPECTED TO COME UNDER PRESSURE AT THE OPEN OF TRADING TODAY BECAUSE THE AGRICULTURE DEPARTMENT ELIMINATED PLANTING RESTRICTIONS ON CORN FARMERS WHO ENROLL IN THE GOVERNMENT'S 1994 PRICESUPPORT PROGRAM THE DECISION WHICH WAS ANNOUNCED AFTER THE CLOSE OF TRADING YESTERDAY CLEARS THE WAY FOR US CORN FARMERS TO PLANT ABOUT 80 MILLION ACRES NEXT SPRING COMPARED WITH THE 737 MILLION ACRES THEY PLANTED THIS YEAR THE DEPARTMENT HAD EARLIER ANNOUNCED IT WOULD REQUIRE CORN FARMERS IN NEXT YEAR'S PROGRAM TO IDLE 5 OF THEIR ELIGIBLE ACREAGE THE GOVERNMENT'S DECISION TO REMOVE ITS SOCALLED SETASIDE REQUIREMENT WAS WIDELY EXPECTED IN THE WAKE OF THE CROP DISASTER IN THE MIDWEST WHICH WAS HIT BY RECORD SUMMER RAIN AND FLOODING THE GOVERNMENT IS ANXIOUS TO INCREASE CROP PRODUCTION NEXT YEAR TO REPLENISH US GRAIN STOCKPILES LAST WEEK THE AGRICULTURE DEPARTMENT FORECAST THE CORN HARVEST UNDER WAY ACROSS THE MIDWEST TO DECLINE 31 FROM LAST YEAR BEFORE THE DECISION WAS ANNOUNCED THE CORN CONTRACT FOR DECEMBER DELIVERY AT THE CHICAGO BOARD OF TRADE ROSE 125 CENTS A BUSHEL TO SETTLE AT 279 A BUSHEL PRECIOUS METALS GOLD FUTURES PRICES RECOUPED MOST OF FRIDAY'S LOSSES GAINING 210 TO 37570 AN OUNCE FOR DECEMBER DELIVERY ON NEW YORK'S COMMODITY EXCHANGE ON FRIDAY DECEMBER GOLD CLOSED OFF 280 AT 37360 ON THE COMEX THE MARKET HAD BEEN PRESSURED ON FRIDAY DUE TO THE EXPIRATION OF OPTION CONTRACTS SAID BERNARD SAVAIKO SENIOR METAL'S ANALYST WITH PAINEWEBBER TECHNICAL CONSIDERATIONS WERE THE PRIMARY FACTORS IN THE MARKET YESTERDAY HE SAID ADDING THE MARKET SUCCEEDED IN HOLDING A SHORTTERM SUPPORT LEVEL AT 373 AN OUNCE GOLD A TRADITIONAL HEDGE AGAINST INFLATION RECEIVED AN ADDITIONAL BOOST FROM A JUMP IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS A WIDELY FOLLOWED GAUGE OF FUTURE INFLATION TRENDS 9311160135 931116 PEPPERAND SALT WITH HIS LOCKS KNIT TO RETROFIT YOU WITH THE HAIR OF THE DOG THAT BIT YOU BUT DOCTORS NEED NOT 9311160133 931116 HOW CHINA GREW OVERNIGHT BY CHARLES WOLF JR WHEN THE ASIAPACIFIC ECONOMIC COOPERATION SUMMIT CONVENES IN SEATTLE ON THURSDAY THE BRIEFING BOOKS OF THE ASSEMBLED HEADS OF GOVERNMENT WILL CONTAIN DATA SHOWING CHINA'S ECONOMY TO BE ENORMOUSLY LARGER THAN PREVIOUSLY ESTIMATED AND NEARLY AS LARGE AS THAT OF JAPAN ONE OF THE PROFESSIONAL SECRETS OF PEOPLE WHO WORK WITH SUPPOSEDLY HARD DATA IS THAT IN FACT THE DATA ARE OFTEN SOFT AND UNRELIABLE THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK TWO OF THE MOST RESPECTED SOURCES OF INTERNATIONAL ECONOMIC DATA RECENTLY PROVIDED A GLIMPSE OF THIS SECRET IN MAY THE IMF AND THE WORLD BANK ANNOUNCED THAT CHINA'S GROSS DOMESTIC PRODUCT WAS BETWEEN FOUR AND FIVE TIMES GREATER IN 1992 THAN THEY HAD PREVIOUSLY ESTIMATED IT TO BE ACCORDING TO THESE REESTIMATES CHINA'S ECONOMY IS NOW THE THIRD LARGEST IN THE WORLD AFTER THE US AND JAPAN TOGETHER WITH PLAUSIBLE FORECASTS OF CHINA'S ECONOMIC GROWTH IN THE NEXT FEW DECADES PERHAPS AVERAGING 5 OR 6 ANNUALLY THE NEW IMF AND WORLD BANK ESTIMATES WOULD WITHIN THE 1990S MAKE THE ECONOMY OF CHINA LARGER THAN THAT OF JAPAN WERE CHINA TO SUSTAIN SUCH A HIGH GROWTH RATE FOR SEVERAL DECADES WHICH IS UNLIKELY ITS GDP WOULD OVERTAKE THAT OF THE US DURING THE THIRD DECADE OF THE 21ST CENTURY THESE REMARKABLE RECALCULATIONS AND PROJECTIONS RAISE TWO QUESTIONS WHAT ACCOUNTS FOR THE ENORMOUS DISCREPANCY BETWEEN THE EARLIER AND THE CURRENT ESTIMATES AND WHAT DIFFERENCE IF ANY WILL THIS HUGE CHANGE IN CHINA'S CURRENT ECONOMIC SIZE AND ITS FUTURE PROSPECTS MAKE FOR THE WORLD'S ECONOMY AND SECURITY THE ANSWER TO THE FIRST QUESTION IS STRAIGHTFORWARD IN THEIR RECENT ESTIMATES THE IMF AND WORLD BANK CONVERTED CHINESE YUAN FIGURES INTO 1992 DOLLARS BY USING A PURCHASING POWER PARITY EXCHANGE RATE WHEREAS IN PRIOR ESTIMATES THEY USED A FOREIGN EXCHANGE RATE THE PURCHASING POWER RATE IS BASED ON THE COST OF A SPECIFIED BASKET OF GOODS AND SERVICES IN YUAN COMPARED WITH ITS COST IN DOLLARS THE FOREIGN EXCHANGE RATE DEPENDS ON THE OFFICIAL RATE OF EXCHANGE BETWEEN THE YUAN AND THE DOLLAR QUOTED BY THE IMF FOREIGN EXCHANGE RATES ARE CRITICALLY DEPENDENT ON INTERNATIONAL CAPITAL MOVEMENTS THAT HAVE LITTLE EFFECT ON PPP WHILE PPP IS INFLUENCED BY THE RELATIVE PRICES OF SUCH NONTRADABLE SERVICES AS HEALTH CARE HOUSING AND CONSTRUCTION WHICH HAVE LITTLE EFFECT ON EXCHANGE RATES ALTHOUGH THERE ARE SOME PURPOSES FOR WHICH IT IS APPROPRIATE TO USE FOREIGN EXCHANGE RATES IN COMPARING NATIONAL ECONOMIES FOR THE SPECIFIC PURPOSE OF COMPARING THE RELATIVE SIZE OF DIFFERENT NATIONAL ECONOMIES THE PPP RATE IS CLEARLY PREFERABLE IN PUBLISHED WORK THAT RAND DID FOR THE NATIONAL COMMISSION ON INTEGRATED LONGTERM STRATEGY IN 1988 THE PPP RATE WAS USED TO MAKE INTERNATIONAL COMPARISONS BETWEEN CHINA'S GROSS NATIONAL PRODUCT AND THE GNPS OF MORE THAN A DOZEN OTHER MAJOR NATIONAL ECONOMIES INCLUDING THAT OF THE US THE ESTIMATES RECENTLY ANNOUNCED BY THE IMF AND THE WORLD BANK WERE REMARKABLY SIMILAR TO THE EARLIER RAND RESULTS THE IMF AND WORLD BANK ARE TWO OF THE MOST FREQUENTLY CITED SOURCES OF INTERNATIONAL ECONOMIC DATA BUT THEY ARE NOT ALONE IN THE MAGNITUDE OF THEIR MISESTIMATES OVERESTIMATES BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT AND BY OFFICIAL US GOVERNMENT AGENCIES OF THE NATIONAL ECONOMIES OF EAST GERMANY AND THE THENSOVIET UNION PRIOR TO 1990 WERE NEARLY EQUIVALENT IN SCALE TO THE PREVIOUSLY CITED UNDERESTIMATES OF CHINA'S GDP BY THE IMF AND THE WORLD BANK SINCE EVEN THESE SUPPOSEDLY RELIABLE DATA SOURCES ARE SOMETIMES PRONE TO LARGE ERRORS CAUTION IS PLAINLY WARRANTED IN USING THEIR DATA WHEN POLICY CHOICES ARE INFLUENCED BY DATA DERIVED FROM THESE AND SIMILAR SOURCES THE CHOSEN POLICIES MAY BE AS UNRELIABLE AS THE SHAKY DATA ON WHICH THEY ARE BASED THE ANSWER TO THE SECOND QUESTION ABOUT WHAT DIFFERENCE THE REESTIMATES OF THE CHINESE ECONOMY MAKE IN THE INTERNATIONAL ARENA HAS TWO PARTS ONE ECONOMIC THE OTHER BEARING ON MILITARY AND SECURITY MATTERS A CHINESE ECONOMY THAT IS FOUR TO FIVE TIMES LARGER THAN IT WAS PREVIOUSLY BELIEVED TO BE AND CONTINUES TO GROW AT A 5 TO 6 ANNUAL RATE WILL PLAY AN EQUIVALENTLY EXPANDED ROLE IN THE WORLD ECONOMY IN GENERAL CHANGES IN A COUNTRY'S IMPORTS DEPEND AMONG OTHER FACTORS ON THE GROWTH OF ITS ECONOMY AS WELL AS ON ITS SIZE IF CHINA'S ECONOMY BECOMES MORE OPEN TO FOREIGN IMPORTS AND IF ONE ACCEPTS THE PREVIOUSLY CITED ESTIMATES THAT THE SIZE OF THE CHINESE ECONOMY IS CURRENTLY ABOUT 2 TRILLION CHINA WILL BECOME AN INCREASINGLY IMPORTANT MARKET FOR EXPORTS FROM THE US AS WELL AS FROM THE ASIAPACIFIC REGION AND THE REST OF THE WORLD CHINA IS STILL TOO SMALL TO BE ANYTHING APPROACHING THE LOCOMOTIVE FOR THE REST OF THE WORLD'S ECONOMIES THAT THE US ECONOMY WAS IN THE 1970S AND 1980S BUT CHINA TOGETHER WITH THE RAPIDLY GROWING SOUTHEAST ASIAN ECONOMIES AMOUNTS TO ABOUT 40 OF THE SIZE OF THE US ECONOMY AND THIS MAY BE LARGE ENOUGH TO BE AT LEAST A TRACTOR FOR THE REST OF THE WORLD IF SUCH OTHER FACTORS AS SUCCESSFUL CONCLUSION OF THE URUGUAY ROUND OF GATT AND ADOPTION OF GROWTHPROMOTING TAX POLICIES BY ASIAN COUNTRIES PROCEED IN FAVORABLE AND REINFORCING DIRECTIONS THE ASIAPACIFIC TRACTOR CAN HELP SIGNIFICANTLY TO PULL THE WORLD'S ECONOMIES TO HIGHER GROUND THE SECURITY DIMENSION OF CHINA'S CHANGED AND CHANGING ECONOMIC SIZE IS MORE UNSETTLING AS WELL AS MORE UNCERTAIN CHINA IS CURRENTLY THE ONLY MAJOR COUNTRY WHOSE MILITARY SPENDING IS INCREASING IN REAL TERMS ABOUT 8 OF ITS GDP IS ALLOCATED TO DEFENSE TO COVER THE OPERATING COSTS OF THE FOUR MILLION MEN AND WOMEN IN ITS ARMED FORCES AS WELL AS THE COSTS OF MILITARY MODERNIZATION THESE FIGURES COMPARE TO GDP SHARES OF 4 FOR THE US A LITTLE OVER 1 FOR JAPAN AND ABOUT 2 FOR THE COUNTRIES OF WESTERN EUROPE MILITARY ALLOCATIONS OF THIS SCALE FROM THE LARGE AND GROWING ECONOMIC BASE THAT CHINA'S GDP PROVIDES ARE A SOURCE OF INCREASING CONCERN TO CHINA'S NEIGHBORS JOSEPH SCHUMPETER AN ECONOMIST WHOSE INTERESTS AND INSIGHTS EXTENDED BEYOND THE USUAL BOUNDARIES OF ECONOMICS OBSERVED FOUR DECADES AGO THAT MILITARISM IS ROOTED IN THE AUTOCRATIC STATE WHEREAS THE BOURGEOIS STATE IS UNWARLIKE THE ASIAPACIFIC REGION AS WELL AS THE REST OF THE WORLD HAS MUCH TO GAIN FROM CHINA'S MOVE FROM AUTOCRACY TOWARD SOME SEMBLANCE OF BOURGEOIS DEMOCRACY THE LATTER OF COURSE WITH A CHINESE FACE MR WOLF IS DEAN OF THE RAND GRADUATE SCHOOL AND DIRECTOR OF INTERNATIONAL ECONOMIC RESEARCH IN RAND'S NATIONAL DEFENSE RESEARCH INSTITUTE 9311160132 931116 LETTERS TO THE EDITOR OSTRICH'S VIEW OF THE DEFICIT MONSTER IN HIS OCT 28 POLITICS & PEOPLE COLUMN ATTACKING THE CONGRESSIONAL EFFORT TO PASS THE BALANCED BUDGET AMENDMENT AL HUNT TAKES THE OSTRICH VIEW OF LIFE IE FROM WHERE I SIT I CAN SEE NO PROBLEM I SUGGEST MR HUNT USE SOME SECOND GRADE MATH SKILLS TO DETERMINE THAT TODAY'S INCREASING FEDERAL DEFICIT SPELLS TOMORROW'S AMERICAN DISASTER THE BALANCED BUDGET AMENDMENT IS THE ONLY HOPE WE HAVE TO REIN IN THE FEDERAL SPENDING MONSTER AND IF CONGRESS DOES NOT TAKE THE LEAD THE STATES VERY WELL MAY TAKE THE ISSUE OUT OF ITS HANDS MR HUNT SHOULD REMEMBER THAT THE CONSTITUTIONAL AMENDMENT PROCESS IS NOT LIMITED TO WHAT CONGRESS MAY DECIDE THE STATES CAN BYPASS CONGRESS AND CALL FOR A CONSTITUTIONAL CONVENTION TO CONSIDER THE ISSUE THE NECESSARY VOTES ARE PROBABLY ATTAINABLE THE SIMPLE FACT IS THAT THE POLITICAL SYSTEM IN WASHINGTON IS BROKEN AND ONLY A FUNDAMENTAL CHANGE IN THE RULES CAN RESULT IN THE RETURN OF FINANCIAL SANITY AS MR HUNT NOTES CONGRESS HAS APPROVED 26 TRILLION OF RED INK IN THE PAST 12 YEARS HE THEN GOES ON TO ATTACK AS HYPOCRITES THOSE WHO SUPPORT THE BALANCED BUDGET AMENDMENT BUT REFUSED TO SUPPORT THE CLINTON DEFICIT REDUCTION PLAN THE PROBLEM WITH MR HUNT'S ANALYSIS IS THAT THE CLINTON TAX HIKES AND SPENDING PLANS EVEN IF SUCCESSFUL WOULD STILL ADD ANOTHER 1 TRILLION TO THE EXISTING DEFICIT WITHOUT EVER BALANCING THE FEDERAL BUDGET THAT IS NO SOLUTION THE HYPOCRITICAL 65 WANT TO FINALLY SOLVE THE SPENDING PROBLEM ONCE AND FOR ALL THE REAL HYPOCRITES ARE THOSE WHO ATTEMPT TO SELL THE CLINTON DEFICIT REDUCTION PLAN AS ANYTHING OTHER THAN MORE SPENDING AND MORE DEFICIT CONSIDER FOR A MOMENT WHAT WOULD OCCUR IF INTEREST RATES RETURNED TO THE LEVEL OF THE CARTER ADMINISTRATION IN THAT SITUATION ALMOST 100 OF THE INCOME FROM FEDERAL TAXES WOULD BE REQUIRED TO SIMPLY PAY INTEREST ON THE FEDERAL DEBT WITHIN A FEW YEARS AS THE DEFICIT CONTINUES TO RISE WHAT THEN SHOULD CONGRESS AUTHORIZE THE PRINTING OF MORE MONEY RESULTING IN HYPERINFLATION OR SHOULD CONGRESS AUTHORIZE THE GOVERNMENT TO WALK AWAY FROM PART OF THE FEDERAL DEBT RESULTING IN CHAOS AND ANARCHY WHAT ABOUT CONFISCATORY TAX RATES CONGRESS AND THE PRESIDENT UNDER BOTH POLITICAL PARTIES HAVE DEMONSTRATED THEIR INABILITY TO DEAL REALISTICALLY WITH THE DEFICIT BECAUSE OF THE POLITICAL PRESSURES NECESSARY TO BE ELECTED WE NEED A CONSTITUTIONAL AMENDMENT TO FORCE A BALANCED BUDGET AND A LINE ITEM VETO FOR THE PRESIDENT THEN WE WOULD SEE IF THIS DEMOCRATIC PRESIDENT REALLY WANTS TO BALANCE THE BUDGET THAT WOULD TELL US WHO THE REAL HYPOCRITES ARE MR HUNT LABELS AS HYPOCRITES MEMBERS OF CONGRESS WHO SUPPORT A BALANCED BUDGET AMENDMENT AFTER VOTING AGAINST DEFICIT REDUCTION ECONOMISTS LABEL THESE INDIVIDUALS RATIONAL ACTORS THESE LEGISLATORS KNOW THAT TAXPAYERS WOULD BE BETTER OFF WITH A BALANCED BUDGET BUT THEY ALSO REALIZE THAT A UNILATERAL VOTE AGAINST PORK FOR THEIR OWN DISTRICTS WOULD QUICKLY PUT THEM OUT OF A JOB CURRENTLY POLITICIANS RUN UP THE DEFICIT BY OUTDOING EACH OTHER IN SECURING GOODIES FOR THE FOLKS BACK HOME ONLY UNDER A RULE COERCING ALL MEMBERS TO REDUCE SPENDING WILL EACH INDIVIDUAL MEMBER RESTRAIN HIS OR HER PORKSEEKING INSTINCTS MR HUNT'S OBJECTIONS TO SUPERMAJORITARINISM ARE A RED HERRING THE FUNDAMENTAL PREMISE UNDERLYING THE CONSTITUTION IS TO RESTRAIN DEMOCRATIC MAJORITIES IN THE INTEREST OF LIMITED GOVERNMENT IF THE FRAMERS WERE AS SUPPORTIVE OF MAJORITARIAN RULE AS MR HUNT SUPPOSES THERE WOULD BE NO SEPARATION OF POWERS NO BICAMERALISM NO PRESIDENTIAL VETO AND NO BILL OF RIGHTS FURTHER NONE OF THESE PROVISIONS CAN BE CHANGED WITHOUT THE SUPERMAJORITY REQUIRED BY ARTICLE V OF THE CONSTITUTION AMERICANS SHOULD JUDGE THE BALANCED BUDGET AMENDMENT BY THE SAME CRITERION APPLICABLE TO ALL CONSTITUTIONAL RULES THEIR EFFICACY IN CURBING IRRESPONSIBLE GOVERNMENT ACTIVITY MR HUNT RECENTLY LISTED ME AS ONE OF THE 65 MEMBERS OF CONGRESS WHO VOTED AGAINST BOTH THE CLINTON AND REPUBLICAN PLANS FOR REDUCING THE DEFICIT BUT WHO ALSO IS SPONSORING A CONSTITUTIONAL AMENDMENT TO BALANCE THE BUDGET HE WAS HALF RIGHT I AM A SPONSOR OF A CONSTITUTIONAL AMENDMENT TO BALANCE THE BUDGET BUT I VOTED FOR THE CLINTON DEFICIT REDUCTION PLAN ON FINAL PASSAGE AFTER THE BTU TAX HAD BEEN REMOVED IN CONFERENCE COMMITTEE 9311160131 931116 GORDON CAPITAL TO PAY 46 MILLION TO A FUND AS PART OF A SETTLEMENT TORONTO THE ONTARIO SECURITIES COMMISSION HAS ORDERED GORDON CAPITAL CORP TO PAY SIX MILLION CANADIAN DOLLARS US46 MILLION TO A FUND DESIGNED TO PROTECT INVESTORS AGAINST INSOLVENCY ON THE PART OF INVESTMENT DEALERS THE ORDER CAME AS PART OF SETTLEMENTS BETWEEN THE SECURITIES REGULATOR AND GORDON AND TWO OF ITS SENIOR EXECUTIVES THE INVESTMENT DEALER AND THE EXECUTIVES ADMITTED TO BREACHING A VARIETY OF SECURITIES REGULATIONS OVER A TWOYEAR PERIOD IN CONNECTION WITH A SERIES OF MARGINACCOUNT TRANSACTIONS GORDON AND THE EXECUTIVES ADMITTED THAT THE TRANSACTIONS RESULTED IN GORDON OVERSTATING ITS REVENUE AND ITS NETFREE CAPITAL POSITION THE OSC ALSO IMPOSED A 90DAY SUSPENSION ON JAMES CONNACHER PRESIDENT AND CHIEF EXECUTIVE OF GORDON DURING THAT PERIOD MR CONNACHER WILL NOT PARTICIPATE IN ANY ORDINARY BUSINESS OF GORDON AN INVESTMENT DEALER OR ATTEND GORDON'S OFFICE OR CONTACT ANY CURRENT OR POTENTIAL CLIENT ALTHOUGH HE WILL BE PERMITTED TO DISCUSS STRATEGIC OR EXTRAORDINARY BUSINESS TRANSACTIONS WITH OTHER GORDON EXECUTIVES PETER BAILEY GORDON'S COMPLIANCE OFFICER RECEIVED A REPRIMAND FROM THE OSC THE ORDER THAT GORDON MAKE A PAYMENT TO THE CANADIAN INVESTOR PROTECTION FUND IS UNPRECEDENTED OSC OFFICIALS SAID BUT THEY NOTED THAT GORDON HAD COME BEFORE THE SECURITIES COMMISSION FACING SIMILAR ALLEGATIONS OF NONCOMPLIANCE ON AT LEAST TWO OCCASIONS JOAN SMART HEAD OF THE OSC PANEL THAT APPROVED THE SETTLEMENTS SAID THE COMMISSIONERS VIEWED THE OFFENSES AS PARTICULARLY SERIOUS BECAUSE OF GORDON'S PAST ENCOUNTERS WITH THE OSC HAD THE SETTLEMENT AGREEMENTS NOT BEEN REACHED THE ISSUE WOULD HAVE PROCEEDED TO A HEARING IN A NEWS RELEASE TOM ALLEN A GORDON EXECUTIVE SAID THE LENGTHY HEARING PROCESS WOULD HAVE BEEN AN UNACCEPTABLE DISTRACTION FROM GORDON'S HIGH LEVEL OF SERVICE TO OUR CLIENTS 9311160130 931116 WHO'S NEWS AMAX GOLD INC AMAX GOLD INC GOLDEN COLO THIS MINING COMPANY NAMED GERALD J MALYS 49 TO ITS BOARD AS EXPECTED MILTON H WARD WAS ALSO NAMED A DIRECTOR AND ELECTED CHAIRMAN THE MOVES WERE PART OF CYPRUS MINERALS CO'S ACQUISITION OF AMAX INC FORMING CYPRUS AMAX MINERALS CO AS PART OF THE TRANSACTION AMAX GOLD WHICH WAS A UNIT OF AMAX IS NOW 40OWNED BY CYPRUS AMAX MR MALYS IS CHIEF FINANCIAL OFFICER OF CYPRUS MR WARD 61 IS COCHAIRMAN OF CYPRUS AMAX THEY ARE FILLING SEATS ON AMAX GOLD'S BOARD VACATED BY THE RESIGNATIONS OF PAUL E DRACK AND EMIL MOSBACHER JR 9311160129 931116 WHO'S NEWS FIRST CHICAGO NAMES MULLIN PRESIDENT POSITIONING HIM TO BECOME BANK'S CEO BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL FIRST CHICAGO CORP NAMED LEO MULLIN PRESIDENT AND CHIEF OPERATING OFFICER MAKING THE 50YEAROLD FORMER MCKINSEY & CO CONSULTANT THE HEIR APPARENT TO RICHARD THOMAS CHAIRMAN AND CHIEF EXECUTIVE MR MULLIN WHO OVERSEES THE BANK'S RETAIL AND MIDDLEMARKET BUSINESSES AND DAVID VITALE EXECUTIVE VICE PRESIDENT IN CHARGE OF CORPORATE BANKING WERE CONSIDERED THE CONTENDERS TO SUCCEED THE 62YEAROLD MR THOMAS BOTH HAD BEEN NAMED TO THE BOARD IN OCTOBER 1992 THEIR APPOINTMENTS EFFECTIVELY ELIMINATED ANY OTHER CANDIDATES AND SET UP WHAT BECAME A QUIET HORSE RACE MR VITALE 47 WAS NAMED VICE CHAIRMAN A NEW POSITION AND WILL REPORT TO MR MULLIN THE BOARD WHICH MET FRIDAY APPROVED THE MOVES UNANIMOUSLY ONE DIRECTOR SAID LEO WOULD BE IN A VERY STRONG POSITION TO BECOME CHIEF EXECUTIVE SAID MR THOMAS WHO RELINQUISHED THE POST OF PRESIDENT AND IS EXPECTED TO RESIGN IN TWO AND A HALF YEARS THE BOARD CONCLUDED HE BROUGHT TO THE TABLE THE BETTER PACKAGE OF SKILLS THAN ANY OF THE OTHER POTENTIAL CANDIDATES THE CHIEF OPERATING OFFICER POSITION IS NEW BUT MR THOMAS CATEGORICALLY DENIED SOME EXPECTATIONS THAT THE APPOINTMENT REFLECTS A SHIFT AWAY FROM CORPORATE BANKING WHILE MR THOMAS CONCEDED THAT RELATIVELY MORE RESOURCES WERE BEING ALLOCATED TO THE CONSUMER BANK AND THERE WAS A PRESUMPTION THAT THE BANK WOULD PLAY DOWN CORPORATE BANKING HE SAID THE SUCCESS OF THE CORPORATE BANK THIS YEAR AUGURED WELL FOR THE BUSINESSES THE BANK HAS HAD STRONG RESULTS TRADING CURRENCIES AND SECURITIES AND IT RECENTLY APPLIED TO THE FEDERAL RESERVE BOARD TO RECEIVE PERMISSION TO SELL CORPORATE BONDS BANK OFFICIALS SAY ONE REASON THE DECISION WAS MADE WELL AHEAD OF MR THOMAS' EXPECTED RETIREMENT WAS THE INCREASED TENSION OVER THE SUCCESSOR MR THOMAS AND THE BOARD WANTED TO STOP THE COMPETITION FROM BUBBLING INTO A MAJOR SCHISM IN THE MID1970S THERE WAS A VIRTUAL FISTFIGHT FOR THE SUCCESSOR TO CHAIRMAN GAYLORD FREEMAN LEAVING SCARS THAT RESULTED IN A SERIES OF HIGHLEVEL RESIGNATIONS TENSIONS BEGIN TO DEVELOP WITHOUT A MORE FORMAL LINEUP SAID MR THOMAS PEOPLE CAN NOW DEVOTE MORE TIME TO RUNNING THEIR BUSINESS THAN THEY DID A WEEK OR TWO AGO ANALYSTS AND OTHERS PRAISED THE MOVE MR MULLIN WHO HAS BEEN AT THE BANK 12 YEARS HAS BEEN INVOLVED IN VIRTUALLY EVERY ASPECT OF FIRST CHICAGO STARTING OFF WITH A STINT IN STRATEGIC PLANNING HE HAS ALSO RUN THE RETAIL BANK INTERNATIONAL BANKING AND DOMESTIC COMMERCIAL BANKING BUSINESSES AND MOST RECENTLY WAS CHAIRMAN OF AMERICAN NATIONAL CORP THE COMPANY'S MIDDLEMARKET BANK HE SPENT NINE YEARS AT MCKINSEY AND ROSE TO BECOME A PARTNER AT THE SAME TIME OUTSIDERS SAID IT'S IMPORTANT THAT THE BANK ELEVATED MR VITALE A 25YEAR VETERAN WHO RECEIVES HIGH MARKS IN SECURITIES ACTIVITIES AND HAS BEEN WOOED BY OTHER BANKS ONE CHALLENGE WILL BE TO KEEP MR VITALE AT FIRST CHICAGO NOW THAT IT'S APPARENT HE WILL NOT BE CHIEF EXECUTIVE THE BOARD HOPES THE TEAM STAYS IN PLACE SAID ONE DIRECTOR PEOPLE WHO KNOW BOTH EXECUTIVES SAY THE TWO COULD WELL FIT HAND IN GLOVE GIVEN THEIR RESPECTIVE STRENGTHS THEY BOTH COMPLEMENT EACH OTHER SAID PETER CRIST COHEAD OF NORTH AMERICA FOR RUSSELL REYNOLDS ASSOCIATES 9311160128 931116 MONDAY'S MARKETS STOCKS BONDS FINISH LOWER DOLLAR GAINS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BRISK INDUSTRIAL PRODUCTION DATA SENT STOCKS AND BONDS MARGINALLY LOWER WHILE THE DOLLAR ENDED HIGHER THE DOW JONES INDUSTRIAL AVERAGE FELL 699 POINTS TO 367752 STANDARD & POOR'S 500 STOCK INDEX SLIPPED 164 TO 46375 AND THE NASDAQ COMPOSITE INDEX TUMBLED 687 TO 77245 A GOVERNMENT REPORT SHOWING A LARGERTHANEXPECTED 08 SURGE IN INDUSTRIAL PRODUCTION LAST MONTH TIPPED BOND PRICES INTO A SHARP EARLYMORNING DECLINE THAT IN TURN TOOK A TOLL ON STOCK PRICES AMID INVESTOR CONCERN THAT A ROBUST ECONOMY WOULD CREATE INFLATIONARY PRESSURES ALTHOUGH BOTH THE STOCK AND BOND MARKET REBOUNDED SOMEWHAT LATER IN THE DAY AN AURA OF UNCERTAINTY CLUNG TO THE MARKETS PENDING TOMORROW'S VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT A VOTE AGAINST NAFTA WOULD BE A NEGATIVE DEVELOPMENT AT LEAST FOR SHORT TERM FOR BOTH THE BOND AND STOCK MARKET SAID LACY HUNT CHIEF US ECONOMIST FOR HSBC HOLDINGS IN NEW YORK UTILITIES GOT CLOBBERED THAT'S A BAD SIGN SAID JOSEPH MCALINDEN CHIEF INVESTMENT OFFICER AT DILLON READ IT SUGGESTS THAT THERE MAY BE FURTHER UPWARD PRESSURE ON INTEREST RATES AND THAT WOULDN'T BE GOOD FOR STOCKS IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2487 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1256 ISSUES FELL AND 827 ROSE THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16920 MARKS AND 10670 YEN COMPARED WITH 16850 MARKS AND 10575 YEN FRIDAY 9311160127 931116 TECHNOLOGY & HEALTH APPLE IS HOPING QUICK SHIFT TO POWERPC BEARS FRUIT IN ENDING INTEL DOMINANCE BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS UPPING THE ANTE IN THE PERSONAL COMPUTER WARS APPLE COMPUTER INC SAID IT PLANS A SWIFT TRANSITION TO A LINE OF MACINTOSHES BASED ON A POWERFUL NEW MICROPROCESSOR THAT THE COMPANY IS BANKING ON TO REGAIN LOST FOOTING AT THE INDUSTRY'S COMDEX SHOW WHICH OPENED HERE YESTERDAY APPLE OFFICIALS DISCLOSED THAT THEY EXPECT 25 TO 30 OF THEIR PC SALES IN THE NEXT 12 MONTHS TO BE OF THE POWERPCBASED MACINTOSHES TO BE LAUNCHED IN MARCH WITHOUT OUTLINING FURTHER SPECIFICS ON SALES MICHAEL SPINDLER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID APPLE INTENDS TO MOVE THE ENTIRE VOLUME OF ITS MACINTOSH SALES TO POWERPC AS SOON AS POSSIBLE HE PREDICTED THAT EVENTUALLY SALES WOULD EXPLODE TO MILLIONS OF THE PERSONAL COMPUTERS BASED ON THE POWERPC CHIP DEVELOPED JOINTLY BY CUPERTINO CALIFBASED APPLE INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY AND MOTOROLA INC SCHAUMBURG ILL SEEKS TO BE DESKTOP MAINSTAY POWERPC MR SPINDLER SAID IN A KEYNOTE ADDRESS TO THE CONVENTION WILL BE THE ENGINE THAT APPLE USES TO FULLY DELIVER THE PROMISE OF APPLE'S NEW MODEL OF INFORMATION AND COMMUNICATION SERVICES HE ALSO PREDICTED POWERPC WOULD BECOME THE VOLUME MAINSTAY OF THE DESKTOP SUPPLANTING CHIPS MADE BY RIVAL INTEL CORP THAT DOMINATE AN ESTIMATED 85 OF THE PC MARKET ANALYSTS PRAISED APPLE'S NEW AGGRESSIVENESS BUT ADDED THAT THE COMPANY SHOULD HAVE ACTED SOONER MR SPINDLER REALIZED THERE'S A BATTLE TO BE FOUGHT SAID RICHARD ZWETCHKENBAUM A TECHNOLOGY ANALYST FOR INTERNATIONAL DATA CORP BUT THEY SHOULD HAVE FOUGHT IT FIVE YEARS AGO IF THEY HAD THEY'D BE IN BETTER SHAPE THAN THEY ARE NOW UNDER MR SPINDLER WHO SUCCEEDED FORMER CHAIRMAN AND CEO JOHN SCULLEY EARLIER THIS YEAR AS THE COMPANY UNDERWENT A WRENCHING RESTRUCTURING APPLE HAS BEEN CUTTING PRICES STEADILY ON ITS EXISTING MACINTOSHES IN AN EFFORT THAT SO FAR HAS BEEN SUCCESSFUL IN BOOSTING SALES DURING THE TRANSITION TO POWERPC BESIDES APPARENTLY REVERSING A SALES SLUMP THAT DEBILITATED APPLE'S PROFIT THE MACINTOSH EFFORT HAS PUT MORE OF A SQUEEZE ON VENDORS OF IBMCOMPATIBLE PCS WHICH ARE BASED ON RIVAL INTEL'S FAMILY OF CHIPS APPLE'S VIGOR IN TOUTING POWERPC ALSO PUTS FRESH PRESSURE ON INTEL AND THE IBMCOMPATIBLE VENDORS WHICH RECENTLY BEGAN SHIPPING PCS BASED ON INTEL'S NEXTGENERATION PENTIUM CHIP BUT INTEL'S INSTALLED BASE IS SO HUGE THAT IT'S NOT LIKELY TO BE KNOCKED OFF BY POWERPC ANYTIME SOON INDEED THE SANTA CLARA CALIF COMPANY IS FURIOUSLY INCREASING PRODUCTION OF ITS PENTIUM CHIPS AND AT COMDEX IT DISPLAYED HUGE BANNERS THAT TOUTED THE CHIP'S PROWESS OBVIOUSLY YOU NEVER COUNT OUT INTEL MR SPINDLER SAID IN A NEWS CONFERENCE AFTER HIS ADDRESS THEY HAVE BEEN A FORMIDABLE COMPETITOR BUT I THINK POWERPC IS EXTREMELY COMPETITIVE IN PRICE AND PERFORMANCE IN OUTLINING APPLE'S TURNAROUND STRATEGY TO REPORTERS FOR THE FIRST TIME SINCE TAKING THE HELM AT APPLE MR SPINDLER SAID APPLE HAS NO INTENTION OF RETREATING FROM ITS POSITION AS A LEADING INNOVATOR IN COMPUTER SYSTEMS AND SOFTWARE INDEED MR SPINDLER REAFFIRMED HIS BACKING OF ALL THE VARIOUS APPLE BUSINESS DIVISIONS INCLUDING THE ONE RESPONSIBLE FOR THE CONTROVERSIAL NEWTON MESSAGEPAD A HANDHELD ELECTRONIC SECRETARY THAT HAS BEEN CRITICIZED FOR ITS LIMITED HANDWRITING RECOGNITION TO POLISH NEWTON'S IMAGE APPLE YESTERDAY UNVEILED A CONNECTION KIT THAT ENABLES NEWTON USERS TO EXCHANGE DATA BETWEEN THE NEWTON AND PCS BASED ON MICROSOFT CORP'S POPULAR WINDOWS OPERATING SYSTEM THE NEW COMPATIBILITY BETWEEN THE NEWTON AND WINDOWS REINFORCES APPLE'S GROWING DEPARTURE FROM ITS LONGTIME PROPRIETARY STRATEGY AS HAD BEEN PREVIOUSLY INDICATED MR SPINDLER CONFIRMED THAT APPLE HAS UNDER ACTIVE CONSIDERATION A PLAN TO LICENSE ITS SYSTEM 7 OPERATING SYSTEM WHICH WOULD ENABLE OTHER VENDORS TO CLONE THE MACINTOSH AND AS EXPECTED APPLE YESTERDAY INTRODUCED A MACINTOSH THAT FEATURES AN ADDON INTEL CHIP WHICH ENABLES USERS TO RUN BOTH MACINTOSH AND WINDOWS PROGRAMS WE SEE US BECOMING A PLAYER IN A LARGER MARKET MR SPINDLER SAID 9311160126 931116 ELECTRONIC CLEARING HOUSE INC AGOURA HILLS CALIF ELECTRONIC CLEARING HOUSE INC SIGNED A MULTIYEAR CREDITCARDPROCESSING AGREEMENT WITH CHARTER PACIFIC BANK TO TAKE EFFECT BY DEC 31 TERMS WEREN'T DISCLOSED THE COMPANY SAID 4800 MERCHANTS' ACCOUNTS WILL BE PROCESSED BY CHARTER PACIFIC LOS ANGELESBASED WESTSIDE BANK OF SOUTHERN CALIFORNIA IS THE CURRENT PROCESSOR OF THE ACCOUNTS BOTH ELECTRONIC CLEARING HOUSE AND CHARTER PACIFIC ARE BASED IN AGOURA HILLS 9311160125 931116 MARKETING & MEDIA QVC LAUNCHES IN MEXICO HOMESHOPPING CHANNEL WEST CHESTER PA QVC NETWORK INC CONTINUING TO TAKE ELECTRONIC RETAILING GLOBAL LAUNCHED A 24HOURADAY HOMESHOPPING CHANNEL IN MEXICO THE NEW SPANISHLANGUAGE CHANNEL CVC TELEMERCADO ALAMEDA IS A JOINT VENTURE WITH GRUPO TELEVISA SA THE LARGEST MEDIA AND ENTERTAINMENT COMPANY IN MEXICO QVC SAID THE CHANNEL DISTRIBUTED THROUGH TELEVISION CABLE TV AND SATELLITE CARRIES PRODUCTS CURRENTLY ON SALE THROUGH QVC'S HOMESHOPPING NETWORK IN THE US PLUS MEXICAN GOODS 9311160124 931116 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON THOUGH AT TIMES THE MOVIE'S SMUG EUPHORIA AND PSYCHOBABBLE ASSERT THEMSELVES LIKE ANNOYING PESTS WITHOUT THEM FEARLESS WOULDN'T BE QUITE AS AMAZING AS IT IS ITS UNEMBARRASSED EXAMINATION OF PSYCHOLOGICAL TRAUMA HERE SURVIVING A PLANE CRASH SEEMS ESPECIALLY AUDACIOUS NOW AT A TIME WHEN PSYCHOLOGY IN MOVIES USUALLY COMES IN OBLIGATORY SUMMATIONS MR BRIDGES NEVER FLINCHES FROM FULLY REALIZING THE CRUELLY SELFISH POTENTIAL OF HIS CHARACTER A ONCEFEARFUL FLYER WHO THINKS SURVIVAL HAS BESTOWED IMMORTALITY ON HIM DIRECTOR WEIR ONCE AGAIN DEMONSTRATES HIS GIFT FOR TRANSMITTING THE LINK BETWEEN NIGHTMARE AND REALITY IN THIS MESMERIZING FILM THIS PICTURE GETS INSIDE A YOUNG WOMAN'S PSYCHE WITH THE INSIGHT AND NUANCE OF A GOOD NOVEL IN THIS STORY OF A TENNESSEE GIRL WHO HAS MOVED TO PANAMA BEACH FLA THE REDNECK RIVIERA MS JUDD SHOWS HERSELF TO BE A WONDERFULLY EXPRESSIVE ACTRESS MR NUNEZ HAS GIVEN HIS FILM THE DISTILLED EMOTIONALITY OF A FOREIGN FILM CHARACTERS UNABASHEDLY PHILOSOPHIZE AND FEEL AS THEY NEVER WOULD IN CONVENTIONAL AMERICAN MOVIES THE TACKY LANDSCAPE THAT IS THE BACKDROP FOR RUBY'S SELFDISCOVERY GIVES THE FILM A STRANGE POIGNANCY THIS STORY ABOUT A PUERTO RICAN HEROIN MAGNATE IN EAST HARLEM WHO DECIDES TO GO STRAIGHT ZIPS ALONG FAST ENOUGH SO YOU DON'T REALLY MIND THAT JUST ABOUT EVERYONE IN IT IS BEHAVING STUPIDLY FROM HONORBOUND CARLITO TO THE VARIOUS HOODS WHO BUZZ AROUND HIM WHAT REALLY DRAWS YOU IN IS MR DE PALMA'S SKILL AT BRINGING A BRASH NOISY WORLD TO THE SCREEN MOST SURPRISING IS MR PENN'S PERFORMANCE AS CARLITO'S LAWYER THE WANNABE HOOD WHO SNORTS HIS WAY TO OBLIVION AND DRAGS CARLITO WITH HIM THIS SHREWD AND BEAUTIFULLY MADE FILM EXAMINES THE SELFDEFEATING RITUALS OF THE ENGLISH ARISTOCRACY FROM THE POINT OF VIEW OF A BUTLER WHO HAS DEVOTED HIS LIFE TO PRESERVING THEM THE BUTLER MIGHT COME OFF AS AN IDIOT OR A BORE WITH HIS DOGGED DEVOTION TO DUTY AND HIS LACK OF IRONY BUT MR HOPKINS MAKES HIM ENORMOUSLY SYMPATHETIC WEIRDLY HONORABLE MS THOMPSON PLAYS HIS PROVOCATEUR THE HOUSEKEEPER WHO LIKES AN ORDERLY HOUSE TOO BUT WHO RECOGNIZES THAT SOME THINGS ARE MORE IMPORTANT THAN POLISHED SILVER WITH ITS BREATHTAKING VISUAL STYLE AND CAREFUL ATTENTION TO SOUND AND MOVEMENT THIS MESMERIZING PICTURE PROVOKES CONTEMPLATION ABOUT THE WAYS PEOPLE COMMUNICATE THROUGH WORDS THROUGH MUSIC THROUGH SEX AND PERHAPS MOST SIGNIFICANTLY THROUGH TOUCH SET IN 19THCENTURY NEW ZEALAND IN A LANDSCAPE OF HAUNTING BEACHES AND MUDDY FORESTS THIS FILM TAKES US INTO THE HEART OF A SOUTHERN HEMISPHERE FAIRYLAND IN THIS PLACE THE MOVIE'S HEROINE A WOMAN WHO STOPPED SPEAKING WHEN SHE WAS A CHILD AND WHO HAS SINCE EXPRESSED HERSELF MOST POWERFULLY THROUGH MUSIC FINDS RELEASE IN A STRANGE AND BEAUTIFUL WAY IN THIS IRISH STORY A MAGIC HORSE HELPS TWO YOUNG BOYS HELP THEIR FATHER A MOURNFUL DRUNK COME TO GRIPS WITH THE DEATH OF HIS WIFE THEIR MOTHER EIGHT YEARS AFTER THE FACT THEY ARE TRAVELERS IRISH GYPSIES MEANT TO LIVE LIFE ON THE ROAD AND THE FATHER HAS GIVEN UP THAT LIFE ALONG WITH EVERYTHING ELSE THE FILMMAKERS MAKE THE MAGIC SEEM AS REALISTIC AS THE DREARINESS IT'S A LOVELY FILM FOR ADULTS AND CHILDREN 9311160123 931116 TECHNOLOGY XEROX DIGITAL EQUIPMENT DEAL STAMFORD CONN XEROX CORP SAID IT SIGNED AN AGREEMENT WITH DIGITAL EQUIPMENT CORP TO DEVELOP SOFTWARE ALLOWING XEROX'S HIGHVOLUME PRINTERS TO BE EASILY CONNECTED WITH COMPUTER SYSTEMS MADE BY DIGITAL TERMS WEREN'T DISCLOSED XEROX TYPICALLY SELLS ITS HIGHVOLUME PRINTERS WHICH PRINT MORE THAN 50 PAGES A MINUTE TO DIRECT MAIL COMPANIES INSURANCE AND BANKING CONCERNS AND THE GOVERNMENT CONNECTING XEROX'S PRINTERS TO DIGITAL'S COMPUTER SYSTEMS IS CURRENTLY A CUMBERSOME PROCESS AND THE NEW SOFTWARE IS EXPECTED TO MAKE THE TWO COMPANIES' PRODUCTS COMPATIBLE XEROX SAID 9311160122 931116 DOW JONES EQUITY MARKET INDEX NEW YORK SEVERAL CHANGES ARE BEING MADE TODAY IN THE DOW JONES EQUITY MARKET INDEX AS A RESULT OF CYPRUS MINERALS CO'S ACQUISITION OF AMAX INC WHICH WAS COMPLETED YESTERDAY AMAX IS BEING DELETED FROM THE ALUMINUM INDUSTRY GROUP AND CYPRUS MINERALS IS BEING DELETED FROM THE OTHER NONFERROUS INDUSTRY GROUP THE MERGED COMPANY CYPRUS AMAX MINERALS CO IS BEING ADDED TO THE COAL INDUSTRY GROUP ALSO TWO SPINOFF COMPANIES ARE BEING ADDED ALUMAX INC IS JOINING THE ALUMINUM INDUSTRY GROUP AND AMAX GOLD INC IS BEING PLACED IN THE PRECIOUS METALS INDUSTRY GROUP 9311160121 931116 UNILAB MAKES AN ACQUISITION TARZANA CALIF UNILAB CORP SAID IT ACQUIRED CERTAIN ASSETS OF CENTRAL REFERENCE LABORATORY INCLUDING THE CUSTOMER LIST FOR 45 MILLION UNILAB SAID THAT THE PURCHASE PRICE IS SUBJECT TO ADJUSTMENT UP OR DOWN BASED ON THE LEVEL OF RETAINED BUSINESS AND THAT IT'S PAYABLE IN THREE ANNUAL INSTALLMENTS IN UNILAB'S CHOICE OF CASH OR COMMON STOCK UNILAB SAID IT MADE THE FIRST PAYMENT IN STOCK FURTHER DETAILS WEREN'T IMMEDIATELY AVAILABLE UNILAB SAID IT INTEGRATED CENTRAL REFERENCES BUSINESS INTO ITS OPERATIONS HERE THE COMPANY SAID CENTRAL REFERENCE BASED IN ANAHEIM CALIF HAS ANNUAL REVENUE OF MORE THAN 6 MILLION UNILAB SAID IT EXPECTS CENTRAL REFERENCE'S ANAHEIM FACILITY TO STAY IN PLACE AS UNILAB'S LOCAL TESTING FACILITY AND OPERATIONS HUB FOR ORANGE COUNTY UNILAB SAID IT MOVED ITS EXISTING ANAHEIM LAB TO THE CENTRAL REFERENCE FACILITY 9311160120 931116 ILLINOIS POWER CO PROPOSAL DECATUR ILL ILLINOIS POWER CO SAID IT IS SEEKING REGULATORY APPROVAL TO FORM A HOLDING COMPANY STRUCTURE FOR THE UTILITY AND ITS UNITS ILLINOIS POWER SAID IT WILL ASK SHAREHOLDERS FOR APPROVAL AT A SPECIAL MEETING SCHEDULED FOR FEB 9 1994 AS PART OF THE PROPOSED RESTRUCTURING THE COMPANY WOULD TRANSFER ITS IP GROUP INC UNIT TO THE HOLDING COMPANY WHILE OTHER UNITS WOULD REMAIN UNDER ILLINOIS POWER 9311160119 931115 ASTRA POSTS 69 GAIN IN ITS PRETAX PROFIT FOR FIRST 9 MONTHS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDISH PHARMACEUTICAL GROUP AB ASTRA SAID ITS PRETAX PROFIT SOARED 69 IN THE FIRST NINE MONTHS BOOSTED BY A 64 JUMP IN WORLDWIDE SALES FOR ITS BIGGESTSELLING PRODUCT ULCER DRUG LOSEC PRETAX PROFIT TOTALED 578 BILLION KRONOR 7034 MILLION COMPARED WITH 342 BILLION KRONOR A YEAR EALIER NET PROFIT ROSE 86 TO 417 BILLION KRONOR SALES INCREASED 43 TO 1608 BILLION KRONOR FROM 1121 BILLION KRONOR ADJUSTED FOR EXCHANGERATE FLUCTUATIONS THE GROWTH IN SALES WAS ABOUT 20 THE COMPANY SAID SWEDISH ANALYSTS SAID EARNINGS WERE ABOVE EXPECTATIONS OF A PRETAX PROFIT OF 55 BILLION KRONOR BUT SOME ANALYSTS FELT IN VESTORS WILL BE PAYING MORE ATTENTION TO FULLYEAR PREDICTIONS IN VIEW OF THE LARGE TRANSLATION DIFFER ENCES IN EARNINGS FOR THE FOURTH QUARTER OF 1992 THE INCREASE IN EARNINGS FOR THE FULL YEAR 1993 ISN'T EXPECTED TO REACH THE SAME HIGH RATE AS DURING THE PERIOD JANUARYSEPTEMBER THE COMPANY SAID SALES OF ASTRA'S ASTHMA MEDICINE PULMICORT WERE 208 BILLION KRONOR IN THE FIRST NINE MONTHS COMPARED WITH 135 BILLION KRONOR A YEAR EARLIER SALES OF PLENDIL WHICH TREATS HYPERTENSION INCREASED 49 TO 629 MILLION KRONOR 765 MILLION FROM 422 MILLION KRONOR AND SALES OF BETABLOCKER SELOKEN GREW TO 130 BILLION KRONOR FROM 106 BILLION KRONOR 9311160118 931116 BUSINESS BRIEF PRUDENTIAL PLANS PRICE OF UP TO 21 A SHARE FOR OFFERING OF UNIT NEWARK NJ PRUDENTIAL INSURANCE CO OF AMERICA HOPES TO RAISE 420 MILLION BY SELLING 40 OF ITS REINSURANCE UNIT IN A REGISTRATION STATEMENT FILED FRIDAY PRUDENTIAL SAID IT PLANS TO SELL 20 MILLION SHARES IN PRUDENTIAL REINSURANCE HOLDINGS INC AT A MAXIMUM PRICE OF 21 A SHARE PRUDENTIAL THE COUNTRY'S BIGGEST INSURANCE COMPANY ANNOUNCED IN MARCH THAT IT WOULD TRY TO SELL PRU RE HOPING TO SELL THE ENTIRE COMPANY FOR 12 BILLION FINDING NO TAKERS IT DECIDED IN AUGUST TO SELL A PART OF THE COMPANY THROUGH A PUBLIC OFFERING THE OFFERING PRICE SUGGESTS THAT PRUDENTIAL HAS LOWERED ITS EXPECTATIONS ABOUT WHAT THE COMPANY IS WORTH THE MAXIMUM OFFERING PRICE VALUES THE COMPANY AT 105 BILLION 150 MILLION LESS THAN THE ORIGINAL VALUE PLACED ON IT BY PRUDENTIAL UNDER TERMS OF THE PROPOSED OFFERING PRUDENTIAL WOULD HELP CUSHION THE BLOW FOR UNFORESEEN CLAIMS ARISING FROM ANY BUSINESS ALREADY ON PRU RE'S BOOKS PRUDENTIAL WOULD PAY THE FIRST 210 MILLION OF ANY ENVIRONMENTAL LOSSES AND THE FIRST 75 MILLION OF ANY OTHER LOSSES PRUDENTIAL WOULD PAY THE MONEY INTO PRU RE WHEN THE UNIT SETS UP RESERVES TO PAY THE CLAIMS PRU RE IS ONE OF THE COUNTRY'S LARGEST REINSURERS LAST YEAR IT REPORTED 797 MILLION OF NET WRITTEN PREMIUMS PRUDENTIAL SAYS IT WANTS TO SELL THE BUSINESS SO IT CAN CONCENTRATE ON ITS CORE BUSINESSES SUCH AS INDIVIDUAL FINANCIAL SERVICES PRUDENTIAL'S PROCEEDS FROM THE OFFERING COULD RISE TO 483 MILLION IF THE UNDERWRITERS CHOOSE TO EXERCISE THEIR RIGHT TO SELL MORE STOCK 9311160117 931116 REVIEW & OUTLOOK EDITORIAL HISPANICS AND NAFTA HOWEVER THE VOTE ON NAFTA GOES TOMORROW ONE UNDERREPORTED SILVER LINING IS THE SUPPORT THE TREATY HAS WON AMONG HISPANIC AMERICANS IN AND OUT OF CONGRESS AMERICA'S FASTEST GROWING ETHNIC GROUP HAS SHOWN IN THIS DEBATE THAT IT DOESN'T WANT TO BE A SLAVE TO ONE POLITICAL PARTY OR INTEREST THE BLACK CAUCUS BY CONTRAST IS ONCE AGAIN VOTING MORE OR LESS AS A MONOLITH AGAINST NAFTA IN LOCKSTEP WITH LABOR DEMOCRATS WE COUNT ONLY DEMOCRATIC SENATOR CAROL MOSELEYBRAUN AND REPUBLICAN CONGRESSMAN GARY FRANKS AS DISSENTERS FROM THIS ORTHODOXY THE NAFTA DEBATE HAS PRODUCED A REFRESHING DIVERSITY AMONG HISPANICS THAT SUGGESTS AN IMPORTANT NEW OPENING TO THE POLITICS OF GROWTH AND OPPORTUNITY IT'S NOT SURPRISING OF COURSE THAT NAFTA SHOULD BE SUPPORTED BY THE HISPANIC CHAMBER OF COMMERCE OR BY A BORDERDISTRICT REPUBLICAN LIKE HENRY BONILLA OF TEXAS BUT THE STRIKING THING IS THE DEGREE TO WHICH NAFTA HAS PICKED UP SUPPORT EVEN AMONG AMERICA'S MOST LIBERAL HISPANIC POLITICIANS TAKE ESTEBAN TORRES A LOS ANGELES DEMOCRAT WITH A 92 AFLCIO RATING THE SON OF AN ARIZONA MINEWORKER WHO WAS DEPORTED TO MEXICO DURING THE DEPRESSION MR TORRES WORKED FOR NEARLY 20 YEARS FOR THE UNITED AUTO WORKERS YET HE NOW SUPPORTS NAFTA NO ONE IS GOING TO TELL ME ABOUT THE CONDITIONS OF AUTO WORKERS IN MEXICO THEY DO QUITE WELL HE SAYS REBUTTING A LABOR ARGUMENT AGAINST THE TRADE DEAL HE SAYS A PACT THAT INTEGRATES THE TWO ECONOMIES IS GOOD FOR WORKERS ON BOTH SIDES OF THE BORDER ARE WE GOING TO GO TO THE BORDER AND SAY BUILD A WALL AROUND US MR TORRES ASKS HIS SUPPORT IS ALL THE MORE CONSEQUENTIAL BECAUSE IT WAS THE CULMINATION OF TWO YEARS OF WORK BY A GROUP CALLED LATINO CONSENSUS ON NAFTA THIS WAS A COMBINE OF SUCH LEFTOFCENTER HISPANIC GROUPS AS THE NATIONAL COUNCIL OF LA RAZA AND SOUTHWEST VOTER RESEARCH INSTITUTE OF TEXAS THEY WANTED TO SUPPORT NAFTA BUT HAD THE USUAL LIBERAL WORRIES ABOUT JOB LOSS SO THEY PUSHED FOR MEXICO AND THE US TO CREATE A NORTH AMERICAN DEVELOPMENT BANK NADBANK WHICH WOULD FINANCE BORDER CLEANUP AND INVESTMENTS IN AREAS WHERE A PLANT MIGHT CLOSE AND MOVE TO MEXICO NOW OUR VIEW OF SUCH DEVELOPMENT BANKS IS THAT THEY END UP DOING FAR BETTER BY POLITICIANS THAN BY ORDINARY PEOPLE BUT AT LEAST THIS IDEA TRANSCENDED THE SIMPLE REJECTIONISM OF THE AFLCIO AND THE SIERRA CLUB ENDORSED BY THE CLINTON ADMINISTRATION THE NADBANK HAS PROVED DECISIVE IN WINNING NAFTA SUPPORT FROM MR TORRES WHO LED THE WAY AND THEN FROM SUCH OTHER LIBERAL REPRESENTATIVES WITH LARGE HISPANIC CONSTITUENCIES AS NANCY PELOSI XAVIER BECERRA LUCILLE ROYBALALLARD ED PASTOR AND KARAN ENGLISH AMONG OTHERS MEXICANAMERICAN SUPPORT FOR NAFTA ALSO EXTENDS TO SUCH LOCAL POLITICIANS AS GLORIA MOLINA THE LIBERAL SUPERVISOR FOR LOS ANGELES COUNTY AND CALIFORNIA ASSEMBLYMAN RICHARD POLANCO A POLL BY SOUTHWEST VOTER SHOWED SUBSTANTIAL SUPPORT FOR NAFTA AMONG ALL HISPANICS AS DID A FIVECITY SURVEY BY MARKET DEVELOPMENT INC OF SAN DIEGO THIS LOCAL SUPPORT IN TURN IS SOMETHING THE PRONAFTA MEMBERS OF CONGRESS CAN FALL BACK ON IF LABOR RETALIATES IN 1994 WE SHOULD ADD THAT HISPANICS ALSO HAVE THEIR DIFFERENCES ON NAFTA THE LATINO CONSENSUS DOESN'T INCLUDE LUIS GUTERREZ A CHICAGO DEMOCRAT AND PUERTO RICANAMERICAN WHO WON'T BUCK THE UNIONS TWO CUBANAMERICAN REPUBLICANS FROM FLORIDA ILEANA ROSLEHTINEN AND LINCOLN DIAZBALART OBJECT TO MEXICAN FOREIGN POLICY BUT NO ONE HAS BENEFITED MORE FROM AMERICAN OPENNESS THAN CUBAN AND PUERTO RICAN IMMIGRANTS THE BROADER POINT IS THAT HISPANIC AMERICANS HAVE SHOWN THEY CAN BREAK OUT OF THE LIBERAL STEREOTYPE THAT MINORITIES ONLY FAVOR THE POLITICS OF REDISTRIBUTION THERE'S A LESSON HERE FOR BOTH PARTIES BUT ESPECIALLY FOR THOSE REPUBLICANS WHO HAVE WRITTEN OFF ALL MINORITY VOTERS HISPANIC AMERICANS ARE INCREASINGLY UP FOR GRABS LA MAYOR RICHARD RIORDAN WON 43 OF HISPANICS IN HIS VICTORY THIS YEAR AND CHRISTIE WHITMAN WON 44 IN HER NEW JERSEY RUN FOR GOVERNOR THIS ASSUMES REPUBLICANS CAN AVOID NATIVISM WHEN PAT BUCHANAN CALLS MEXICO A PIGPEN AND ROSS PEROT IMPLIES THAT ALL MEXICANS LIVE IN SHANTYTOWNS MEXICANAMERICANS RUN IN THE OTHER DIRECTION NAFTA HAS PROVIDED A USEFUL SORTING OUT AND IT IS REASSURING TO SEE THE NATION'S FASTEST GROWING ETHNIC GROUP CHOOSE THE POLITICS OF TRADITIONAL AMERICAN OPTIMISM 9311160116 931116 INTERNATIONAL MEXICO RELEASES FORECASTS FOR STRONGER '94 ECONOMY MEXICO CITY THE MEXICAN GOVERNMENT RELEASED A SERIES OF OPTIMISTIC ECONOMIC FORECASTS FOR 1994 AND ITS PRESIDENT PLAYED DOWN THE EFFECT OF THE NORTH AMERICAN FREE TRADE AGREEMENT ON THE COUNTRY'S SHORTTERM EXPECTATIONS IN AN ANNUAL ADDRESS PRESIDENT CARLOS SALINAS DE GORTARI SAID THE GOVERNMENT EXPECTS THE ECONOMY TO GROW 3 NEXT YEAR UP FROM A 11 ESTIMATED FOR THIS YEAR IT ESTIMATED THAT INFLATION WILL FALL TO 5 IN 1994 FROM AN ESTIMATED 77 THIS YEAR ITS INFLATION RATE WAS 12 IN 1992 INFLATION REDUCTION HAS BEEN A KEY COMPONENT OF THE GOVERNMENT'S PLAN TO RAISE THE PURCHASING POWER OF ITS CITIZENS HOWEVER THE CHIEF INFLATIONFIGHTING TOOLS OF HIGH INTEREST RATES AND LOWER TARIFFS HAVE DISRUPTED MEXICO'S GROWTH AND LED TO THOUSANDS OF LOST JOBS WITH THE US NAFTA VOTE SET FOR TOMORROW PRESIDENT SALINAS PLAYED DOWN THE TREATY'S NEARTERM IMPORTANCE WHILE NAFTA WOULD INTEGRATE MEXICO INTO THE INTERNATIONAL ECONOMY THE ECONOMIC PROGRAM PRESENTED HERE DOESN'T DEPEND ON THE RATIFICATION HE SAID HOWEVER ANALYSTS SAY THAT IF NAFTA FAILS TO WIN US APPROVAL THE PACE OF MEXICO'S ECONOMIC EXPANSION MAY SLOW 9311160115 931116 ONTARIO EXPECTS FISCAL '94 DEFICIT OF 723 BILLION BY ANDREW WILLIS STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE PROVINCE OF ONTARIO SAID IT EXPECTS TO RECORD A DEFICIT OF 954 BILLION CANADIAN DOLLARS US723 BILLION IN ITS CURRENT FISCAL YEAR ABOVE ITS ORIGINAL PROJECTIONS BUT SIGNIFICANTLY BELOW MARKET EXPECTATIONS MOST ECONOMISTS AND RATING AGENCIES HAD EXPECTED THE DEFICIT TO TOP C10 BILLION AS TAX REVENUES COME UNDER PRESSURE AND SOME SAY THE ACTUAL NUMBER COULD BE HIGHER WALTER SCHROEDER PRESIDENT OF DOMINION BOND RATING SERVICE LTD SAYS THE PROVINCE APPEARS TO BE SHIFTING CAPITAL SPENDING FROM ITS OWN BUDGET ONTO THE BOOKS OF VARIOUS STATEOWNED CORPORATIONS WHILE EXPENDITURES ON ROADS AND BUILDINGS ARE SHOWING UP AS LOANS TO THOSE AGENCIES A DEFICIT OF UNDER C10 BILLION WAS VIEWED AS A MAGIC NUMBER NEEDED TO MAINTAIN INVESTORS' FAITH IN ONTARIO CANADA'S MOST POPULOUS PROVINCE MR SCHROEDER SAID HE ADDED THAT THE RATING SERVICE WHICH PLANS TO QUESTION THE GOVERNMENT'S ACCOUNTING POLICIES IN MEETINGS NEXT WEEK CALCULATES THE ACTUAL DEFICIT IS CLOSER TO C118 BILLION THE DEFICIT IS C377 MILLION HIGHER THAN PROJECTED AND A PROVINCIAL FINANCE DEPARTMENT OFFICIAL SAID ONTARIO'S BORROWING REQUIREMENTS FOR THE FISCAL YEAR NOW TOTAL C1038 BILLION UP FROM C1002 BILLION UNDER THE PREVIOUS DEFICIT FORECAST CREDIT RATING AGENCIES EXPECT TO SPEND NEXT WEEK REVIEWING THE PROVINCE'S PERFORMANCE IN THE FIRST HALF OF ITS FISCAL YEAR AT STAKE IS ONTARIO'S DOUBLEA CREDIT RATING ALREADY UNDER REVIEW WITH NEGATIVE IMPLICATIONS BY STANDARD & POORS CORP DOMINION AND MONTREALBASED CANADIAN BOND RATING AGENCY SCHROEDER SAYS A DECISION ON ONTARIO DEBT RATINGS WILL AWAIT THE RESULT OF THE MEETINGS NEXT WEEK BUT HE NOTED THAT A DOWNGRADE FROM DOUBLEALOW STATUS TO A SINGLEA RATING WOULD HAVE A SIGNIFICANT IMPACT ON ONTARIO'S LIQUIDITY AND ACCESS TO LONGTERM DEBT IN ITS FIRST HALF ENDED SEPT 30 ONTARIO'S FINANCES WERE HURT BY A DROP IN PERSONAL AND CORPORATE INCOME TAXES AND THE IMPACT OF RAMPANT CIGARETTE SMUGGLING ON TOBACCO TAX REVENUE TOGETHER THESE TAX REVENUES CONTRIBUTED C1835 BILLION TO PROVINCIAL COFFERS C705 MILLION BELOW TARGET THE PROVINCIAL GOVERNMENT DID SUCCEED IN TRIMMING COSTS WITH SPENDING LEVELS FALLING C198 MILLION BELOW BUDGET TO REACH C4985 BILLION FOR THE FISCAL YEAR A GOVERNMENT OFFICIAL SAID NO FURTHER SPENDING CUTS ARE ANTICIPATED AT THIS TIME FOLLOWING THE DEFICIT ANNOUNCEMENT CANADIAN BOND TRADERS REPORT THE PROVINCIAL GOVERNMENT IS CONSIDERING A NEW C1 BILLION GLOBAL BOND OFFERING THIS WEEK TO OFFSET PART OF THE DEFICIT IN THE FIRST NINE MONTHS OF 1993 THE GOVERNMENT HAS ISSUED C644 BILLION OF BONDS AND HAD EXPECTED TO HAVE C1109 BILLION IN BONDS OUTSTANDING AT THE END OF ITS FISCAL YEAR 9311160114 931116 HOUSE CLEARS CLINTON PLAN TO IMPROVE STUDENT SKILLS WASHINGTON THE HOUSE BY VOICE VOTE APPROVED THE CLINTON ADMINISTRATION'S PLAN TO IMPROVE THE SKILLS OF HIGHSCHOOL STUDENTS WHO AREN'T BOUND FOR COLLEGE AND TO INCREASE WORK OPPORTUNITIES FOR THEM THE LEGISLATION WOULD GIVE GRANTS TO STATES AND LOCALITIES TO DESIGN PROGRAMS TO HELP NONCOLLEGEBOUND STUDENTS PREPARE FOR JOBS SCHOOLS AND BUSINESSES WOULD LINK UP TO PROVIDE TRAINING IN ADDITION STUDENTS WOULD SELECT CAREER MAJORS BY THE 11TH GRADE GET WORK EXPERIENCE AND RECEIVE A YEAR OF TRAINING AFTER HIGH SCHOOL THE SCHOOLTOWORK BILL IS AWAITING FLOOR ACTION IN THE SENATE WHERE THE LABOR COMMITTEE APPROVED IT EARLIER THIS MONTH CONGRESS ALREADY HAS APPROPRIATED 100 MILLION FOR SCHOOLTOWORK PROGRAMS IN THE CURRENT FISCAL YEAR THE LEGISLATION PENDING IN THE SENATE WOULD AUTHORIZE 300 MILLION FOR THE FISCAL YEAR THAT BEGINS OCT 1 1994 9311160113 931116 UNION SUES UNIT OF AMR AS STRIKE DEADLINE NEARS FORT WORTH TEX THE UNION REPRESENTING AMERICAN AIRLINES FLIGHT ATTENDANTS FILED SUIT AGAINST THE CARRIER CLAIMING BADFAITH BARGAINING JUST AS THE TWO SIDES ARE TO BEGIN LASTDITCH TALKS TO AVOID A STRIKE THE SUIT WAS FILED IN FEDERAL COURT IN DALLAS AND THE TALKS SCHEDULED AT THE REQUEST OF FEDERAL MEDIATORS ARE TO BEGIN TODAY AT AN UNDISCLOSED NEW ORLEANS LOCATION THE STRIKE DEADLINE IS 6 AM CST THURSDAY THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS WHICH REPRESENTS 21000 ATTENDANTS AT AMERICAN CLAIMS THE AIRLINE ENGAGED IN UNFAIR LABOR PRACTICES AS WELL AS BADFAITH BARGAINING IT ASKS THAT AMERICAN BE ORDERED TO RESCIND WORK RULES AND CONDITIONS IMPOSED NOV 1 AFTER THE UNION CONTRACT EXPIRED AMERICAN A UNIT OF AMR CORP SAID IT WAS INCREDULOUS AT THE SUIT IN THE SUIT THE UNION CLAIMS AMERICAN THREATENED TO FIRE STRIKING WORKERS AND TRIED TO CIRCUMVENT THE UNION BY BARGAINING DIRECTLY WITH FLIGHT ATTENDANTS IF A COURT FINDS THAT AMERICAN ENGAGED IN UNFAIR LABOR PRACTICES THE CARRIER COULD BE PROHIBITED FROM HIRING PERMANENT REPLACEMENTS 9311160112 931116 USMADE CARPET TO CARRY CHEMICALEXPOSURE LABELS WASHINGTON US CARPET MANUFACTURERS RESPONDING TO SCIENTIFICALLY UNVERIFIED REPORTS SUGGESTING THAT CHEMICALS IN CARPETS MAY BE HAZARDOUS SAID THEY WILL PROVIDE LABELS THAT INSTRUCT CONSUMERS ON HOW TO AVOID CHEMICAL EXPOSURE WHILE PLEDGING TO ATTACH LABELS TO SAMPLES STARTING JAN 1 THE INDUSTRY ISN'T AGREEING THAT CARPETS POSE A HEALTH RISK ALL THE SCIENTIFIC EVIDENCE POINTS THAT THERE IS NO LINKAGE BETWEEN ANY OF THE REPORTED HEALTH EFFECTS AND CARPET SAID RON VANGELDEREN PRESIDENT OF THE CARPET AND RUG INSTITUTE WHICH REPRESENTS 95 OF THE CARPET MANUFACTURED IN THE US SO FAR THE ENVIRONMENTAL PROTECTION AGENCY HASN'T DETERMINED THAT CARPET CHEMICALS POSE AN INDOOR HEALTH HAZARD ONE ANIMAL STUDY CONDUCTED OUTSIDE THE AGENCY FOUND ANIMALS EXPOSED TO SOCALLED PROBLEM CARPETS SUFFERED SEVERE HEALTH EFFECTS INCLUDING DEATH BUT WE WERE NOT ABLE TO REPLICATE THOSE RESULTS IN A LABORATORY SAID MARK GREENWOOD DIRECTOR OF THE EPA'S OFFICE OF POLLUTION PREVENTION AND TOXICS THE LABEL WILL READ SOME PEOPLE EXPERIENCE ALLERGIC OR FLULIKE SYMPTOMS HEADACHES OR RESPIRATORY PROBLEMS WHICH THEY ASSOCIATE WITH THE INSTALLATION CLEANING OR REMOVAL OF CARPET OR OTHER INTERIOR RENOVATION MATERIALS IF THESE OR OTHER SYMPTOMS OCCUR NOTIFY YOUR PHYSICIAN 9311160111 931116 WORLD MARKETS SHARES TUMBLE 23 IN TOKYO BUT SET RECORDS IN MEXICO AND HONG KONG RALLY IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS TUMBLED 23 MONDAY BECAUSE OF A WAVE OF INDEXLINKED ARBITRAGE SELLING BUT THE MEXICO CITY MARKET SET ITS FOURTH RECORD IN A ROW AS INVESTORS SEEMED CONVINCED THE US WILL PASS THE NORTH AMERICAN FREE TRADE AGREEMENT FRANKFURT STOCKS RALLIED 17 AS A REPORT BY GERMANY'S COUNCIL OF ECONOMIC ADVISERS LED TO RENEWED HOPES FOR REDUCTIONS IN INTEREST RATES AND HONG KONG SHARES CONTINUED THEIR RECORDSETTING PACE LONDON EQUITIES DECLINED AMID MARKET CAUTION AHEAD OF THE US VOTE ON NAFTA AND OF BRITISH ECONOMIC REPORTS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11112 DOWN 099 REFLECTING LOWER MARKETS IN ALL REGIONS WATER UTILITIES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11508 UP 098 OR 086 WITH LYON DES EAUX OF FRANCE POSTING A 49 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 7460 DOWN 314 OR 4 WITH KYOKUYO OF JAPAN SLIDING 74 IN LOCAL CURRENCY THE NIKKEI AFTER TRADING AS HIGH AS 1850695 WAS RESCUED FROM THE DAY'S LOWS BY BARGAIN HUNTING FEARS OF INVESTORS AND ARBITRAGERS WERE FANNED BY A REPORT LAST WEEK BY NOMURA RESEARCH INSTITUTE EUROPE LTD WHICH SAID THE NIKKEI HAS A NEW SHORTTERM RANGE BETWEEN 17000 AND 19000 AND COULD DROP TO 16000 THE REPORT ADVISED AGAINST RUSHING TO BUY SHARES CITING UNCERTAIN OUTLOOKS FOR THE JAPANESE ECONOMY AND CORPORATE EARNINGS AND A POTENTIAL NEW SURGE BY THE YEN AGAINST OTHER CURRENCIES CUTTING RETURNS FROM OVERSEAS SALES IN THURSDAY TRADING EXPORTERS REMAINED WEAKER AS THE YEN APPRECIATED AGAINST THE US DOLLAR STEELMAKERS WHICH REPORTED GRIM EARNINGS FRIDAY ENDED MIXED RAILWAY ISSUES WITH HEAVY MARGIN BUYING BALANCES DROPPED SELLING OF SHARES BOUGHT ON CREDIT ALMOST SIX MONTHS EARLIER WHEN THE MARKET WAS CLIMBING AMID HOPEFUL SIGNS OF ECONOMIC STRENGTH HAS BEEN A FACTOR PULLING THE MARKET DOWN IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 58 POINTS TO 30933 THE FT 30STOCK INDEX EDGED UP 27 POINTS TO 23464 VOLUME WAS 4936 MILLION SHARES DOWN SHARPLY FROM 6394 MILLION SHARES IN THE PREVIOUS SESSION PACED BY A STRONG OPENING BY STOCKINDEX FUTURES THE FT 100 WAS UP MORE THAN 10 POINTS IN INTRADAY DEALINGS BUT CAUTION PREVAILED AS INVESTORS ANTICIPATED THE US CONGRESSIONAL VOTE TOMORROW ON NAFTA AND THIS WEEK'S SPATE OF BRITISH ECONOMIC DATA AND THE TREASURY CHIEF'S NOV 30 BUDGET STATEMENT IF NAFTA IS REJECTED BY THE US LAWMAKERS THE LONDON BOURSE COULD SHED AN ESTIMATED 3 TO 5 IF US STOCKS WERE TO GO INTO A TAILSPIN THESE CONCERNS WERE ESPECIALLY STRONG AFTER WALL STREET OPENED ON WEAK FOOTING TRIGGERING A LATE ROUND OF PROFITTAKING IN LONDON SOME DECLINES ALSO OCCURRED BECAUSE BLUE CHIPS WENT EXDIVIDEND ON THE FIRST DAY OF THE NEW TRADING ACCOUNT IN MEXICO CITY CONTINUING OPTIMISM THAT THE US WILL PASS NAFTA SENT THE IPC INDEX UP 1489 POINTS TO 212333 THE FOURTH CONSECUTIVE ALLTIME CLOSING HIGH THOUGH SOME CAUTION DID EMERGE AS SOME INVESTORS SNATCHED PROFITS IN THE RUNUP IN FRANKFURT THE DAX 30STOCK INDEX SURGED 3410 POINTS TO 204911 ALSO THE DAY'S HIGH THE GERMAN ECONOMIC ADVISERS' REPORT FORECAST THAT THE ECONOMY NEXT YEAR COULD STAGNATE POSTING ZERO GROWTH OR CONTRACT PERHAPS AS MUCH AS 05 WHILE THAT IS BAD NEWS GENERALLY IT REPRESENTS GOOD NEWS FOR THE BOND MARKET IF IT SPURS THE GERMAN CENTRAL BANK TO CUT INTEREST RATES AGAIN YESTERDAY AS THE BOND MARKET BOOSTED SHARE PRICES TRADERS MOVED TO COVER SHORT POSITIONS STARTING A CHAIN REACTION THAT PUSHED PRICES HIGHER SHORT COVERING IS THE PURCHASE OF A SECURITY TO REPLACE SHARES BORROWED FOR A SHORT SALE A BET THAT THE PRICE WILL DECLINE AND PROFIT CAN BE MADE BY PAYING LESS WHEN REPLACING THE STOCK IN PARIS BULLISH US ECONOMIC DATA HELPED SUSTAIN THE FRENCH RALLY AND DESPITE SOME PROFITTAKING STOCKS FINISHED WITH BIG GAINS OFFSETTING LAST WEEK'S BEARISH US PRODUCERPRICE DATA A REPORT ON US INDUSTRIAL PRODUCTION SHOWED AN ADVANCE LAST MONTH OUTSTRIPPED EXPECTATIONS AND THE PREVIOUS MONTH'S INCREASE WAS REVISED TO SHOW HIGHER GROWTH PARIS STOCKS ALSO WERE BOOSTED BY A FRENCH GOVERNMENT REPORT ON PRIVATIZATION PLANS THE FOCUS REMAINED ON INTEREST RATES AMID RUMORS THAT FRANCE MAY WHITTLE DOWN BENCHMARKET RATES THIS WEEK IN AMSTERDAM EQUITIES ADVANCED BROADLY ON RENEWED HOPES FOR DUTCH LENDINGRATE REDUCTIONS SUPPORTED BY FRANKFURT'S STRONG GAIN AND POTENTIAL GERMAN EASING OF MONETARY POLICY IN MILAN STOCKS DROPPED PARTLY BECAUSE OF RELUCTANCE TO BUY NEW POSITIONS AS THE END OF THE NOVEMBER TRADING ACCOUNT APPROACHES IN MADRID PRICES CLOSED HIGHER AFTER A SMALL SPURT FUELED BY FUTURES BUYING IN SYDNEY STOCKS ENDED HIGHER BUT ONLY AFTER LOSING MOMENTUM FROM A 1 INTRADAY RALLY THAT SPILLED OVER FROM FRIDAY'S GAINS FOR THE AUSTRALIAN AND US BOURSES AS WELL AS STRONG DEMAND FOR BANK STOCKS AHEAD OF EARNINGS REPORTS THIS WEEK IN HONG KONG STOCKS CHALKED UP THEIR THIRD STRAIGHT RECORD THOUGH EARLY GAINS THAT PROPELLED THE MAIN INDEX UP 13 WERE PARTLY WIPED OUT BY LATE PROFITTAKING LAGGARD BANKS TURNED IN THE BIGGEST ADVANCES THE BOURSE HAS GAINED 71 IN THE PAST FOUR SESSIONS SPARKED BY A TECHNICAL REBOUND AND SIGNS OF IMPROVING SINOBRITISH POLITICAL RELATIONS REGARDING THE BRITISH COLONY'S FUTURE IN SINGAPORE LATE BARGAIN HUNTING LIFTED SHARES OFF LOWS THOUGH STOCKS STILL ENDED BROADLY DOWN BECAUSE OF SELLING GUIDED BY COMPUTER PROGRAMS BUT IN TAIPEI SHARES SOARED TO A FIVEMONTH HIGH BOOSTED BY A TAIWAN GOVERNMENT ANNOUNCEMENT THAT ALL 15 COMMERCIAL BANKS ESTABLISHED LAST YEAR WILL BE ALLOWED TO INVEST IN THE STOCK MARKET BY YEAR END THIS REVISES A REQUIREMENT THAT BANKS HAD TO OPERATE FOR AT LEAST THREE YEARS TO BE ELIGIBLE TO MAKE SUCH INVESTMENTS THE CHANGE COULD RESULT IN 18 BILLION NEW TAIWAN DOLLARS US6767 MILLION FLOWING INTO THE TAIPEI BOURSE AND IN SEOUL STOCKS SHOT UP ON OPTIMISM ABOUT THE MARKET'S PROSPECTS RENEWING THE YEAR'S HIGHS FOR THE FOURTH CONSECUTIVE SESSION 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 9311160110 931116 CORRECTIONS & AMPLIFICATIONS NONVETERAN MALES AGE 20 AND OVER HAD A MEDIAN INCOME OF 19548 IN 1990 IN YESTERDAY'S PEOPLE PATTERNS COLUMN AN ITEM ON THE DIVERSITY OF THE VETERAN POPULATION MISSTATED THE INCOME AS 12414 SONY CORP'S 27INCH TELEVISION SETS SOLD IN THE US ARE ALL ASSEMBLED IN THE US WITH ABOUT 30 OF THE PARTS IMPORTED IN FRIDAY'S INDUSTRY FOCUS ARTICLE ABOUT UPBEAT PROSPECTS FOR US UNITS OF JAPANESE COMPANIES IT WAS INCORRECTLY STATED THAT SONY PRODUCES ABOUT 70 OF ITS USMARKETED SETS IN THE US 9311160109 931116 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 5/16 HIGH 3 3/16 LOW 3 1/4 NEAR CLOSING BID 3 5/16 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 310 30 TO 37 DAYS 308 38 TO 59 DAYS 333 60 TO 159 DAYS 335 160 TO 239 DAYS 342 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 341 60 DAYS 341 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 266 TWO MONTHS 269 THREE MONTHS 279 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 337 THREE MONTHS 337 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 330 60 DAYS 326 90 DAYS 326 120 DAYS 327 150 DAYS 328 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/2 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 633 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 695 60 DAYS 703 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 692 60 DAYS 702 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311160108 931116 REVIEW & OUTLOOK EDITORIAL THE GOP AND NAFTA THE VOTE ON NAFTA THAT WILL TAKE PLACE TOMORROW NIGHT IN THE US HOUSE OF REPRESENTATIVES WILL BE ONE OF THOSE RARE INSTANCES IN WHICH THE AMERICAN PEOPLE ARE BROUGHT CLOSE TO THE SUSTAINING FOUNDATIONS OF THEIR POLITICAL SYSTEM ALONG THE WAY THEY'RE ALSO GOING TO LEARN SOMETHING ABOUT THE REPUBLICAN PARTY WITH 435 CONSTITUENCIES REPRESENTED HOUSE MEMBERS AREN'T EXPECTED TO DELIVER WISDOM FOR THE AGES WITH EVERY VOTE THE HOUSE'S CAULDRON OF OPINION IS INTENDED TO ENSURE A VOICE FOR THE VARIETY OF INTERESTS THAT PARTICIPATE IN THE COUNTRY'S BIANNUAL DEMOCRATIC EXERCISES THE AMERICAN EXPERIENCE HAS PROVEN THE WORTH OF VENTILATING RATHER THAN SUPPRESSING THESE POLITICAL VIEWS EVEN THOSE ALONG THE FRINGE THE FOUNDERS IN THEIR WISDOM DECIDED THAT THE BEST AND PERHAPS ONLY WAY TO END THE PROBABLY ENDLESS ARGUMENTS OF THE HOUSE WAS WITH A VOTE AND THAT IS HOW 435 REPRESENTATIVES WILL SETTLE NAFTA TOMORROW EVENING MOST OF THE TIME IT IS POSSIBLE FOR ANY ONE MEMBER'S VOTE TO FIND A SECURE PLACE TO HIDE AMID THE HOUSE'S COPIOUS BLANKET OF PROCEDURES AND BOMBAST NOT THIS TIME AND ESPECIALLY NOT FOR THE UNDECIDED HOUSE REPUBLICANS THE ARITHMETIC FOR PASSAGE ASSUMES THAT THE REPUBLICANS MUST DELIVER AT LEAST 120 VOTES FROM THEIR 175 MEMBERS AS OF LATE YESTERDAY AFTERNOON THE REPUBLICAN LEADERSHIP FIGURED THAT IT HAD 106 VOTES FOR THE TREATY SOME 22 REPUBLICANS ARE UNDECIDED IF THESE REPUBLICANS ARE LOOKING FOR GUIDANCE ON HOW TO VOTE ON NAFTA WE SUGGEST THEY REVISIT THE CONSIDERATIONS THAT INFORMED THEIR VOTE ON THE GULF WAR THE WAR'S SUCCESS IN HINDSIGHT WAS LARGE BUT ONE'S VOTE PRIOR TO HOSTILITIES WASN'T OBVIOUS TO ALL MEMBERS POLITICALLY THE PRESSURE ON THEM WAS ENORMOUS AS THE AIR FILLED WITH PROPHECIES BY VARIOUS EXPERTS OF HUGE NUMBERS OF AMERICAN WAR DEAD MANY OF THE VOICES THAT PREDICTED DOOM IN THE GULF WAR NOW OPPOSE A US COMMITMENT TO THE FREE TRADE AGREEMENT SOME OF THE FINAL VOTES FOR THE WAR AGAINST SADDAM INDEED RESULTED FROM PRESIDENTIAL ARMTWISTING AND PLEADING BUT SOMETHING RATHER MORE RARE AND FUNDAMENTAL WAS ALSO AT WORK THAT DAY THAT SOMETHING WAS PATRIOTISM PATRIOTISM ODDLY ENOUGH IS A WORD THAT NOW MAKES A LOT OF POLITICAL SOPHISTICATES SQUIRM THE LEFT USED TO ASSOCIATE IT WITH DEFENSE SPENDING AND THINGS MILITARY TODAY ITS BEEN TAKEN OVER BY THE ISOLATIONIST RIGHT WITH THE NOTION THAT THEY'RE DEFENDING OUR WORKERS AND OUR WAY OF LIFE FROM CHEAP FOREIGN LABOR AND TOO MANY NONEUROPEAN IMMIGRANTS OUR OWN VIEW WOULD BE THAT ACTS OF AMERICAN PATRIOTISM HAVE IN THE MAIN BEEN ABOUT ENSURING THE POSSIBILITY OF PROGRESS THEY HAVE BEEN COMMITMENTS FOR AMERICANS TO COME RONALD REAGAN USED TO TALK ABOUT THE SHINING CITY ON A HILL WHICH TO US IMPLIED NOT SOME DREAMY ICON OF PAST GLORY BUT INSTEAD A MAGNIFICENT WORK IN PROGRESS IT WAS ABOUT DYNAMISM AND CHANGE AND ACHIEVEMENT ABOUT AMERICANS' PROPENSITY TO KEEP PUSHING OUT TO NEW FRONTIERS ACROSS THE WESTERN WILDERNESS INTO SPACE AND MORE RECENTLY INTO THE MICROWORLD OF SILICON VALLEY WARS HAVE BEEN FOUGHT AND SACRIFICES MADE BY OUR PATRIOTS SO THAT AMERICA COULD CONTINUE ITS FORWARD MOMENTUM WHICH MOST AMERICANS HAVE THOUGHT OF AS POSITIVE AND GOOD THAT MOMENTUM IS NOW CARRYING AMERICANS FURTHER AND MORE ROUTINELY INTO THE WORLD THE VOTE ON NAFTA WE WILL UNASHAMEDLY ASSERT STANDS AS A PATRIOTIC MOMENT THIS VOTE HOWEVER IS NOT TO SEND FIGHTING AMERICANS INTO THE WORLD TO SAVE IT BUT TO COMPETE AND TRADE WITH IT IT'S NOT OUR PURPOSE HERE TO DEMEAN THE OPPOSITION'S FERVOR BUT INSTEAD TO SUGGEST THAT WAVERING HOUSE REPUBLICANS SHOULD TRY TO PROPERLY UNDERSTAND WHAT THEY ARE INVOLVED WITH IF WE WERE TO CITE ANYONE UNFAVORABLY ON THIS MATTER IT WOULD BE THE PROTECTIONISTS OF FRANCE THE FRENCH ARE FAMED FOR THEIR PATRIOTISM BUT THEIR LEADING ELITES INCREASINGLY PROTECTIONIST AND EVEN XENOPHOBIC IMPLY WITH THEIR INWARDTURNED VISION A FRANCE WHOSE HISTORICAL ACHIEVEMENT HAS STOPPED A NATION THAT MUST NOW PROTECT WHAT REMAINS OF ITS PAST GLORY THIS SORT OF CRABBED CONSERVATISM IS THE MANTLE HOUSE REPUBLICANS WILL DON WITH A VOTE AGAINST NAFTA IF THE REPUBLICANS NOW DECIDE THAT THEY MUST RATIONALIZE VOTES AGAINST COMPETITIVE WORLD MARKETS ALL THE DEMOGOGUERY ABOUT THEM BEING THE PARTY OF OBSTRUCTION AND REACTION WILL STRIKE MANY VOTERS AS ABOUT RIGHT WE WOULD BE HARD PUT TO DISAGREE THE GOP HAS NEVER BEEN BASHFUL ABOUT DEFINING ITSELF AS PATRIOTIC BUT WE ARE IN A NEW ERA MODERN VOTERS ACCORD NO ONE AUTOMATIC RESPECT FOR THEIR CLAIMS WITH THE NAFTA VOTE THE REPUBLICANS WILL FINALLY DEFINE THEMSELVES AND THEIR PARTY FOR THE FUTURE 9311160107 931116 CHRYSLER REDUCED PENSION LIABILITY IN FIRST 9 MONTHS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP CONTRIBUTED 26 BILLION TO ITS PENSION FUND IN THE FIRST THREE QUARTERS OF 1993 AS PART OF AN EFFORT TO REDUCE ITS UNFUNDED LIABILITY BUT THE AUTO MAKER SAID ITS LIABILITY IS EXPECTED TO RISE BY YEAR END AS A RESULT OF LOW INTEREST RATES AND ITS NEW LABOR CONTRACT THE AMOUNT OF THE RISE WASN'T DISCLOSED SEPARATELY CHRYSLER IS RECALLING MORE THAN 700000 VEHICLES THAT POLLUTE TOO MUCH AND IS ADDING TO ITS US LABOR FORCE TO MEET GROWING DEMAND AT THE BEGINNING OF THE YEAR CHRYSLER HAD 36 BILLION IN UNFUNDED PENSION LIABILITIES IT SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING RELEASED YESTERDAY THAT IT EXPECTS TO SUBSTANTIALLY REDUCE THOSE LIABILITIES BY THE END OF 1995 AT THE END OF THE THIRD QUARTER CHRYSLER SAID IT HAD 2 BILLION IN EMPLOYEE BENEFIT LIABILITIES LARGELY UNFUNDED PENSION LIABILITIES DOWN FROM 46 BILLION A YEAR EARLIER BUT THE 2 BILLION FIGURE DOESN'T INCLUDE ADDITIONAL COSTS STEMMING FROM A NEW LABOR CONTRACT AND LOWER INTEREST RATES CHRYSLER SAID BECAUSE OF ACCOUNTING CHANGES RELATED TO RETIREE EXPENSES CHRYSLER REPORTED THAT ITS NONCURRENT POSTRETIREMENT BENEFITS JUMPED TO 75 BILLION FROM 116 MILLION A YEAR EARLIER CHRYSLER SAID IT PLANS TO ADOPT ANOTHER ACCOUNTING RULE RELATING TO POSTEMPLOYMENT BENEFITS BY JAN 1 WHICH WILL FURTHER REDUCE NET INCOME AND EQUITY BY 250 MILLION TO 350 MILLION MEANTIME CHRYSLER SAID IT IS CONTINUING TO INCREASE ITS US PAYROLL SINCE THE SUMMER OF 1992 IT HAS HIRED 4400 NEW WORKERS AND BROUGHT 2700 WORKERS OFF LAYOFF STATUS CHRYSLER SAYS IT NOW HAS ONLY 448 UNITED AUTO WORKER MEMBERS WHO ARE LAID OFF DOWN FROM MORE THAN 3000 IN 1992 IN WASHINGTON THE US ENVIRONMENTAL PROTECTION AGENCY SAID CHRYSLER IS RECALLING 726873 VEHICLES AFTER FEDERAL TESTS SHOWED SOME VEHICLES WERE PRODUCING NINE TIMES AS MUCH CARBON MONOXIDE AND TWICE AS MUCH NITROGEN OXIDE AS PERMITTED BY FEDERAL REGULATIONS THE RECALL IS THE LARGEST ENVIRONMENTAL RECALL IN THE EPA'S HISTORY THE AGENCY SAID BUT SAFETY RECALLS HANDLED THROUGH THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ARE FREQUENTLY MUCH LARGER CHRYSLER SAID THE PROBLEM STEMMED PRIMARILY FROM A FLAWED OXYGEN SENSOR IN 40LITER ENGINES IN 19871990 JEEP CHEROKEES COMANCHES AND WAGONEERS ALSO 20 AND 25LITER ENGINES IN THE EAGLE PREMIER AND ALLIANCE GTA ARE EFFECTED AS ARE SOME 19881991 EAGLE PREMIER AND DODGE MONACO SEDANS POWERED BY 30LITER ENGINES 9311160106 931116 INTERNATIONAL LLOYD'S FINDS SUCCESS LURING CORPORATE FUNDS MONEY WILL HELP REVERSE TWOYEAR SHRINKAGE IN LOSSPLAGUED MARKET BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON NEARLY FOUR WEEKS AFTER ITS LAUNCH AN AMBITIOUS PLAN TO ATTRACT CORPORATE CAPITAL TO THE 305YEAROLD LLOYD'S OF LONDON INSURANCE MARKET HAS PROVED REASONABLY SUCCESSFUL DESPITE SETBACKS FOR SOME FUNDRAISERS AND THE CANCELLATION OF A FEW PROJECTS ENOUGH MONEY IS FLOWING INTO LLOYD'S TO REVERSE THE LOSSBEDEVILED MARKET'S SHRINKAGE OVER THE PAST TWO YEARS ACCORDING TO LLOYD'S FIGURES 700 MILLION 104 BILLION HAS ALREADY BEEN RAISED THROUGH PUBLICLY QUOTED CORPORATE CAPITAL VENTURES MORE IS EXPECTED FROM OTHER FUNDS STILL IN THE PROCESS OF RAISING MONEY IN ADDITION SMALLER SUMS ARE BEING PROVIDED THROUGH VEHICLES SET UP BY GROUPS OF INVESTORS OR COMMERCIAL FIRMS IN ONE EXAMPLE THIS WEEK YASUDA FIRE & MARINE INSURANCE CO OF JAPAN ANNOUNCED THAT IT WOULD BE PUTTING UP 15 MILLION TO PARTICIPATE DIRECTLY IN THE LLOYD'S MARKET AS A CORPORATE MEMBER YASUDA JAPAN'S SECONDLARGEST INSURANCE COMPANY FOR YEARS HAS PROVIDED REINSURANCE TO LLOYD'S UNDERWRITERS MARKET SOURCES SAY CORPORATE BACKERS ARE LIKELY TO PROVIDE LLOYD'S WITH BETWEEN 800 MILLION AND 1 BILLION IN EXTRA CAPITAL NEXT YEAR RAISING THE MARKET'S OVERALL UNDERWRITING CAPACITY TO AROUND 10 BILLION CAPACITY IS CALCULATED IN TERMS OF THE PREMIUMS THAT CAN BE ACCEPTED FOR INSURANCE BUSINESS FROM A PEAK OF 114 BILLION IN 1991 AND 1005 BILLION LAST YEAR LLOYD'S CAPACITY SHRANK TO 89 BILLION THIS YEAR AS INDIVIDUAL INVESTORS PULLED OUT OF THE MARKET IN THE FACE OF HEAVY LOSSES A FURTHER FALL IN SUPPORT FROM INDIVIDUAL INVESTORS IS LIKELY IN 1994 AS MORE QUIT THE MARKET BUT THIS IS EXPECTED TO BE MORE THAN MADE UP FOR BY THE INFLOW OF CORPORATE CAPITAL THROUGH SPECIALLY CONSTITUTED VEHICLES WHOSE LOSSES WILL BE LIMITED TO THE AMOUNT OF MONEY PUT UP UNDER LLOYD'S RULES THESE VEHICLES WILL BE ABLE TO UNDERWRITE INSURANCE BUSINESS FOR PREMIUMS UP TO TWICE THE LEVEL OF THEIR FUNDS AT LLOYD'S THE EXTRA CAPACITY IS LIKELY TO BE MODEST ENOUGH TO AVOID SWAMPING THE MARKET WITH SURPLUS CASH AT ONE POINT EARLIER THIS YEAR SOME ESTIMATES HAD SUGGESTED THAT AS MUCH AS 2 BILLION MIGHT BE RAISED IN CORPORATE CAPITAL POTENTIALLY ADDING 4 BILLION IN EXTRA UNDERWRITING CAPACITY AND THREATENING TO SEND THE MARKET'S RECENT IMPROVEMENT INTO REVERSE THE PRIZE FOR THE MOST SUCCESSFUL FUNDRAISING GOES TO LONDON INSURANCE MARKET INVESTMENT TRUST ORGANIZED BY BROKERAGE FIRM JAMES CAPEL AND MERCHANT BANK SAMUEL MONTAGU WHICH RAISED 280 MILLION AFTER TARGETING 250 MILLION SEVERAL SMALLER FUNDS MET THEIR TARGETS INCLUDING HCG LLOYD'S INVESTMENT TRUST ORGANIZED BY A GROUP INCLUDING UBS LTD THE LONDON ARM OF UNION BANK OF SWITZERLAND WHICH RAISED 65 MILLION OTHERS WERE FORCED TO SCALE DOWN THEIR AMBITIONS OR WITHDRAW FROM THE FIELD LLOYD'S AGENCY OCTAVIAN GROUP LTD DROPPED A PLAN TO RAISE 60 MILLION AFTER IT BECAME CLEAR THAT IT WOULDN'T GET ANYWHERE NEAR ITS GOALS WITH INSTITUTIONAL INVESTORS WE WERE LATE IN THE DAY COMING FORWARD AND PEOPLE HAD COMMITTED FUNDS SAYS OCTAVIAN'S FINANCE DIRECTOR PHILIP DAVIS CLM INSURANCE FUND PLC LAUNCHED BY BARCLAYS DE ZOETE WEDD AND INSURANCE BROKER SEDGWICK GROUP PLC ANNOUNCED YESTERDAY THAT IT HAD RAISED ONLY 862 MILLION OF THE 110 MILLION INITIALLY TARGETED PRIVATE INVESTORS TOOK LITTLE MORE THAN 20 OF THE 30 MILLION SHARES ON PUBLIC OFFER WHILE INTEREST IN A PLACING FOR INSTITUTIONAL INVESTORS PROVED WEAKER THAN HAD BEEN HOPED ALSO YESTERDAY A FUND CALLED NEW LONDON CAPITAL PLC ORGANIZED BY SG WARBURG SECURITIES IN ASSOCIATION WITH CHARTWELL RE CORP OF THE US SAID IT HAD SCALED BACK ITS SIZE TO 60 MILLION FROM AN INITIAL TARGET OF BETWEEN 100 MILLION AND 150 MILLION WE WOULD HAVE LIKED TO DO MORE BUT THERE WAS INSUFFICIENT INTEREST FROM INSTITUTIONAL INVESTORS ONE OF THE ORGANIZERS SAID 9311160105 931116 ECONOMY INDUSTRIAL PRODUCTION CLIMBS BY 08 LARGEST INCREASE SINCE LAST NOVEMBER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRODUCTION AT US FACTORIES MINES AND UTILITIES JUMPED 08 IN OCTOBER THE FEDERAL RESERVE SAID ANOTHER SIGN THAT THE INDUSTRIAL SECTOR BEGAN PERKING UP THIS FALL AFTER A DISMAL PERFORMANCE FOR MOST OF THE YEAR THE RISE IN INDUSTRIAL PRODUCTION WAS THE LARGEST SINCE LAST NOVEMBER AND COMES ON TOP OF A GAIN THAT WAS REVISED UPWARD TO 04 FOR SEPTEMBER THE FEDERAL RESERVE SAID THE RECENT ACCELERATION HAS BEEN FUELED BY A REBOUND IN THE PRODUCTION OF MOTOR VEHICLES AND PARTS FOLLOWING FOUR MONTHS OF FLAT OUTPUT BUT EVEN OUTSIDE CAR PRODUCTION OUTPUT WAS FAIRLY STRONG AND WIDESPREAD THERE HAVE BEEN MOUNTING SIGNS OVER THE PAST MONTH THAT THE MANUFACTURING SECTOR HAS TAKEN A MUCH AWAITED TURN FOR THE BETTER AN INDEX OF PURCHASING MANAGERS SAID FACTORY ACTIVITY EXPANDED IN OCTOBER FOR THE FIRST TIME IN FIVE MONTHS MANUFACTURING EMPLOYMENT WHICH HAD DWINDLED CONSISTENTLY SINCE FEBRUARY EDGED UP IN OCTOBER AFTER SEASONAL ADJUSTMENTS ANALYSTS CAUTION HOWEVER THAT MANUFACTURING GAINS WILL STILL MOST LIKELY BE PRODUCTIVITYLED OTHER GOOD NEWS A SURVEY RELEASED YESTERDAY BY THE FEDERAL RESERVE BANK OF ATLANTA TURNED UP HUGE INCREASES IN PRODUCTION AMONG SOUTHEASTERN MANUFACTURERS AS WELL AS A RISE IN OPTIMISM ABOUT FUTURE BUSINESS CONDITIONS THE STATISTICS SUGGEST THAT AFTER MORE THAN TWO YEARS OF BELTTIGHTENING RESTRUCTURING AND PRODUCTIVITY IMPROVEMENTS THE MANUFACTURING SECTOR MAY BE ON THE VERGE OF REAPING ITS REWARDS IN ADDITION THE COMMERCE DEPARTMENT SAID BUSINESS SALES OUTPACED INVENTORIES IN SEPTEMBER SUGGESTING PRODUCTION WILL HAVE TO INCREASE MORE IN COMING MONTHS TO KEEP UP WITH DEMAND SALES ROSE 08 IN SEPTEMBER WHILE STOCKPILES GREW 03 MANUFACTURERS GENERALLY ARE IN THE HEALTHIEST SHAPE SINCE THE END OF THE 199091 RECESSION SAID DUN & BRADSTREET CORP ECONOMIST DOUGLAS HANDLER PRODUCTION IS UP INVENTORIES ARE UNDER CONTROL AND EXPORT GROWTH MAY RESUME IN THE COMING MONTHS THE LATEST ECONOMIC INDICATORS HAVE MADE THE CLINTON ADMINISTRATION CONFIDENT THAT THE ECONOMY IS POISED FOR FURTHER STEADY GROWTH LONGTERM INTEREST RATES ARE REMAINING AT HISTORICALLY LOW LEVELS AND AFTER THE EXPECTED TIME LAG HOMEBUILDING STARTS NEW PERMITS AND DURABLEGOODS ORDERS ARE ALL PICKING UP FAIRLY SIGNIFICANTLY VICE PRESIDENT AL GORE SAID YESTERDAY HE ADDED HOWEVER THAT WHILE PEOPLE ARE STILL HURTING TERRIBLY BECAUSE THE PACE OF THE RECOVERY IS SLOW AND JOB GROWTH IS WEAK IT IS TRUE THAT A STEADY AND SUSTAINABLE RECOVERY HAS A BETTER CHANCE OF LASTING OVER A LONG PERIOD OF TIME PRODUCTION IN VIRTUALLY ALL MAJOR MARKET AND INDUSTRY GROUPS SPED UP DURING OCTOBER FROM THE PRECEDING MONTH OUTPUT OF CONSTRUCTION SUPPLIES SLOWED DOWN A BIT BUT THE MANUFACTURE OF HOME APPLIANCES CARPETING AND FURNITURE SHOT UP PRESUMABLY BECAUSE OF A RECENT INCREASE IN HOUSING ACTIVITY PRODUCTION OF NONDURABLE GOODS ROSE TOO WITH MOST OF THE INCREASE COMING FROM CHEMICAL AND FUEL PRODUCTS INDUSTRY OPERATED AT 824 OF CAPACITY IN OCTOBER UP FROM 819 IN SEPTEMBER THAT'S THE HIGHEST LEVEL SINCE THE SUMMER OF 1990 RISING OPERATING RATES ARE OFTEN VIEWED AS A WARNING OF INFLATION BUT OTHER MEASURES OF PRICES SUCH AS THE CONSUMER AND PRODUCER PRICE INDEXES ARE WELL IN CHECK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN OCTOBER THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR OCTOBER STOOD AT 1122 OF THE 1987 AVERAGE HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN SEPTEMBER THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9311160104 931116 INSURANCE LIFEINSURANCE POLICYHOLDERS SEE INTEREST RATES FALL AND FALL BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL WATCH OUT LIFEINSURANCE POLICYHOLDERS THE INTEREST RATE YOU EARN ON YOUR POLICY IS ABOUT TO TUMBLE AGAIN SINCE INTEREST RATES BEGAN FALLING IN THE 1980S HOLDERS OF LIFE INSURANCE HAVE WATCHED THEIR RETURNS SLIDE TOO NOW THE NATION'S LARGEST LIFEINSURANCE COMPANIES ARE GEARING UP FOR YET ANOTHER ROUND OF CUTS ALREADY NORTHWESTERN MUTUAL LIFE INSURANCE CO MASSACHUSETTS MUTUAL LIFE INSURANCE CO AND CONNECTICUT MUTUAL LIFE INSURANCE CO HAVE ANNOUNCED CUTS IN THEIR DIVIDEND SCALES FOR 1994 YESTERDAY METROPOLITAN LIFE INSURANCE CO THE NATION'S LARGEST SELLER OF LIFE INSURANCE DID THE SAME INSURANCE EXPERTS SAY OTHERS WILL FOLLOW THERE IS LITTLE A POLICYHOLDER CAN OR SHOULD DO ABOUT IT DESPITE THE CUTS LIFE INSURANCE STILL PAYS BETTER RATES THAN BANK CERTIFICATES OF DEPOSIT BY A WIDE MARGIN AND WHILE SOME INSURANCE COMPANIES PAY HIGHER RATES THAN OTHERS THERE IS LITTLE POINT IN SWITCHING POLICIES BECAUSE IT WOULD TAKE YEARS TO RECOVER THE SALES CHARGES THE SCALES ARE GOING DOWN BUT POLICIES ARE STILL PAYING A HANDSOME RATE SAID JAMES HUNT AN ACTUARY IN CONCORD NH WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION A CONSUMER ADVOCACY GROUP IT WOULD BE IMPOSSIBLE TO SWITCH AND GET A BETTER RATE MORE THAN HALF OF ALL LIFEINSURANCE CUSTOMERN WHAT IS CALLED WHOLE LIFE WHICH INCLUDES AN INVESTMENT COMPONENT KNOWN AS ITS CASH VALUE MANY COMPANIES LIKE NORTHWESTERN AND MET LIFE WHICH TECHNICALLY ARE OWNED BY POLICYHOLDERS RETURN A PORTION OF THEIR PROFITS EVERY YEAR TO CUSTOMERS BY WAY OF A DIVIDEND EACH YEAR IN THE FALL DIVIDEND RATES ARE RECALCULATED BECAUSE MARKET INTEREST RATES HAVE BEEN FALLING INSURANCE COMPANIES ARE EARNING LOWER PROFITS ON THEIR BOND AND REALESTATE INVESTMENTS IN 1991 THE MOST RECENT YEAR FOR WHICH INDUSTRYWIDE FIGURES ARE AVAILABLE THE AVERAGE YIELD THAT INSURANCE COMPANIES EARNED ON THEIR INVESTMENTS FELL TO 817 FROM 856 THE BIGGEST DROP SINCE THE 1930S THAT MEANS LESS MONEY TO BE DISTRIBUTED TO POLICYHOLDERS EARLIER THIS MONTH NORTHWESTERN SAID IT WAS CUTTING THE INTEREST RATE USED TO CALCULATE ITS DIVIDEND FROM 925 TO 850ITS FOURTH CUT IN EIGHT YEARS AND ITS BIGGEST CUT IN PERCENTAGE TERMS IN MEMORY SINCE INTEREST RATES HAVE COME DOWN WE HAVE HAD TO LOWER OUR DIVIDENDS TO COMPENSATE SAID NORTHWESTERN'S CHIEF ACTUARY WILLIAM KOENIG MET LIFE WHICH DECLINED TO DISCLOSE THE MAGNITUDE OF ITS RATE CUT LOWERED ITS RATE FOR THE SAME REASON AS NORTHWESTERN AS A RESULT MET LIFE WILL PAY 115 BILLION TO POLICYHOLDERS NEXT YEAR COMPARED WITH THE 121 BILLION PAID THIS YEAR BY TAKING THIS ACTION WE'RE ENSURING MET LIFE'S FINANCIAL STRENGTH TO THE LONGTERM BENEFIT OF ALL OF OUR POLICYHOLDERS ROBERT CRIMMINS MET'S EXECUTIVE VICE PRESIDENT WROTE IN A LETTER TO INSURANCE AGENTS UNLIKE CERTIFICATES OF DEPOSIT WHERE EVERYONE WITH THE SAME KIND OF CERTIFICATE EARNS THE SAME RATE AND RETURNS ARE EASY TO CALCULATE LIFE INSURANCE IS FAR MORE COMPLEX SO WHAT A DIVIDEND REDUCTION MEANS FOR ANY INDIVIDUAL POLICYHOLDER DEPENDS ON SUCH THINGS AS THE POLICYHOLDER'S AGE HOW LONG HE OR SHE HAS HAD THE POLICY AND OTHER FACTORS SUCH AS THE INSURANCE COMPANY'S EXPENSES IN GENERAL HOWEVER POLICYHOLDERS RECEIVE INTEREST IN TWO WAYS THEY GET A GUARANTEED RATE ON THEIR CASH VALUE THAT MONEY BUILDS UP OVER TIME IN A POLICY AND CAN BE USED TO PAY PREMIUMS OR TO BORROW AGAINST ANY EXCESS INTEREST IS PAID OUT AS A DIVIDEND AFTER MAKING A FEW ADJUSTMENTS THUS AN INTEREST RATE OF 85 ON A POLICY OF 10000 IN CASH VALUE COULD MEAN ABOUT 400 STAYING IN THE POLICY AS EQUITY AND ANOTHER 450 GOING DIRECTLY TO THE POLICYHOLDER WHICH THE POLICYHOLDER WOULD EITHER TAKE AS A CHECK OR USE TO BUY MORE LIFE INSURANCECALLED A PAIDUP ADDITION THE ACTUAL AMOUNT WOULD BE ADJUSTED UP OR DOWN TO ACCOUNT FOR OTHER FACTORS INCLUDING EXPENSE ASSUMPTIONS AND SOMETHING CALLED THE MORTALITY RETURN WHICH IS THE DIFFERENCE BETWEEN HOW MANY POLICYHOLDERS DIED THAT YEAR VS HOW MANY WERE EXPECTED TO DIE THESE ADJUSTMENTS MAKE IT HARD TO COMPARE ONE COMPANY'S RATES TO ANOTHER'S SAID JOSEPH BELTH EDITOR OF THE INSURANCE FORUM A TRADE LETTER IN ELLETTSVILLE IND TO COMPARE RATES WOULD BE HORRIBLY MISLEADING HE SAID RATES ON ANOTHER POPULAR FORM OF INSURANCE UNIVERSAL LIFE ALSO HAVE BEEN FALLING UNLIKE WITH WHOLE LIFE UNIVERSAL LIFE RATES CAN BE RECALCULATED EVERY MONTH 9311160103 931116 WHO'S NEWS GRIT BOLSTERS VIACOM CHIEF IN TAKEOVER BID BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL IN THE EARLY DAYS OF THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC VIACOM INC CHAIRMAN SUMNER REDSTONE TOOK A WEEKEND OFF TO GO MOUNTAIN CLIMBING NEAR DENVER WITH HIS SON BRENT I CLIMBED 9000 FEET AND THE LAST 40 OR 50 FEET WERE SHEER ROCK THE 70YEAROLD MR REDSTONE BOASTED AFTER THE TRIP ALMOST TWO MONTHS LATER MR REDSTONE IS STILL STRUGGLING TO REACH THE SUMMIT OF THE PARAMOUNT MOUNTAIN THE ENTERTAINMENT AND PUBLISHING GIANT AT THE CENTER OF THE CONTEST BETWEEN VIACOM AND QVC NETWORK INC THOUGH MR REDSTONE SWORE AT THE START HE WOULDN'T RAISE HIS INITIAL BID HE HAS ALREADY DONE SO TWICE AND MAY HAVE TO AGAIN BUT NO ONE ON WALL STREET SEEMS TO BE BETTING AGAINST MR REDSTONE YET WHILE QVC NOW HAS THE HIGH BID ON THE TABLE PARAMOUNT YESTERDAY REJECTED IT AND VIACOM HAS THE ADVANTAGE OF TIMING QVC IS RELYING ON A LEGAL CHALLENGE MANY THINK IT CAN'T WIN ASKING A STATE COURT IN DELAWARE TODAY TO STRIKE DOWN PROVISIONS IN VIACOM'S FRIENDLY MERGER AGREEMENT WITH PARAMOUNT IF ANOTHER BIDDER WINS THE PROVISIONS WOULD FORCE PARAMOUNT TO PAY VIACOM 100 MILLION AND SELL VIACOM A BLOCK OF PARAMOUNT SHARES AT A DISCOUNT THUS GUARANTEEING THAT EVEN IF MR REDSTONE LOSES HE WINS BUT MR REDSTONE AN AVID TENNIS PLAYER DOESN'T LIKE TO LOSE EVEN ON THOSE TERMS WHEN HE INITIALLY PURSUED VIACOM IN 1987 HE WAS THE HOSTILE BIDDER CHALLENGING A MANAGEMENTLED LEVERAGED BUYOUT AND INCREASING HIS BID THREE TIMES BEFORE ACQUIRING THE COMPANY FOR 34 BILLION MR REDSTONE MADE A GOOD BET HIS STAKE IN VIACOM IS VALUED AT MORE THAN 5 BILLION MAKING HIM ONE OF THE RICHEST MEN IN THE MEDIA AND ENTERTAINMENT BUSINESS MR REDSTONE BUILT A FAMILYOWNED DRIVEIN MOVIE BUSINESS NATIONAL AMUSEMENTS INC INTO AN 800SCREEN CHAIN GIVING HIM CLOUT IN HOLLYWOOD AND ENOUGH WEALTH TO PLAY THE STOCK MARKET HE MADE VERY SHREWD STOCK INVESTMENTS IN COMPANIES SUCH AS 20TH CENTURY FOX MGM/UA HOME ENTERTAINMENT AND COLUMBIA PICTURES WHICH WERE LATER BOUGHT BY OTHERS UNTIL HE PURCHASED VIACOM HE HAD NEVER MADE ANY MAJOR ACQUISITIONS AND WHAT MAY BE THE CROWNING DEAL OF HIS CAREER PARAMOUNT IS COMING AT A TIME WHEN MOST MEN OF HIS AGE AND WEALTH ARE READY TO RETIRE MR REDSTONE HAS NO SUCH PLANS INDEED SO ADAMANT IS HE THAT VIACOM CONTINUE IN PERPETUITY THAT HE SAYS HIS WILL MAKES IT VIRTUALLY IMPOSSIBLE FOR THE COMPANY TO BE SOLD AFTER HIS DEATH MR REDSTONE CONTROLS 100 OF NATIONAL AMUSEMENTS INC WHICH IN TURN OWNS A 76 ECONOMIC STAKE IN VIACOM AND CONTROLS 84 OF THE VOTES BUT THE STAKES ARE HELD IN TRUSTS WITH HIS DESCENDANTS AS THE BENEFICIARIES IF I COULD FIGURE OUT A WAY TO CONTROL THIS COMPANY FROM UP THERE OR DOWN THERE I WOULD HE SAID LAST YEAR MR REDSTONE'S TWO CHILDREN HAVE NEVER BEEN ACTIVELY INVOLVED IN MANAGING THE COMPANY BRENT 43 WAS AN ASSISTANT DISTRICT ATTORNEY WORKING ON MURDER CASES IN BOSTON UNTIL RECENTLY WHEN HE MOVED TO THE DENVER AREA WHERE HE SAYS HE MAY PURSUE A PUBLIC SERVICE CAREER AS WELL THOUGH HE IS A DIRECTOR OF VIACOM HE ACKNOWLEDGES HE HAS NEVER HAD MUCH INTEREST IN WORKING THERE AND MR REDSTONE SAYS HE NEVER PUSHED HIM INDEED THE ONLY FAMILY MEMBER WITH A MANAGEMENT JOB IN THE EMPIRE IS MR REDSTONE'S SONINLAW IRA KORFF 43 MR KORFF WHO WAS DIVORCED FROM MR REDSTONE'S DAUGHTER SHARI 39 A YEAR AND A HALF AGO HAS BEEN CHIEF OPERATING OFFICER OF NATIONAL AMUSEMENTS INC FOR MANY YEARS AND IS ON THE BOARD OF VIACOM MR KORFF WHO IS ALSO AMONG OTHER THINGS AN ORTHODOX RABBI A WASHINGTON LOBBYIST AND A DIRECTOR OF THE AUSTRIAN CONSULATE IN BOSTON HOLDS THE TITLE OF SENIOR VICE PRESIDENT OF VIACOM MR REDSTONE SAYS THE DIVORCE DOESN'T AFFECT MR KORFF'S POSITION AT VIACOM HE IS ALSO THE FATHER OF THREE OF MR REDSTONE'S FIVE GRANDCHILDREN AND MR KORFF SAYS HE HAS NO PLANS AT THE MOMENT TO DO ANYTHING ELSE MR REDSTONE'S DAUGHTER IS LIKE HER FATHER AND BROTHER AN ATTORNEY BY TRAINING SHE IS WORKING PART TIME AT NATIONAL AMUSEMENTS AND MR REDSTONE SAYS SHE MAY JOIN THE VIACOM BOARD TO RUN VIACOM MR REDSTONE HAS RELIED ON FRANK BIONDI JR WHOM HE RECRUITED AS CEO AND WHO WAS GIVEN A FREE HAND TO PICK MANAGERS FOR VIACOM'S MTV SHOWTIME AND OTHER CABLE AND BROADCASTING UNITS BUT MR REDSTONE RECENTLY BROUGHT IN HIS LONGTIME LEGAL ADVISER PHILIPPE DAUMAN FROM SHEARMAN & STERLING LAW FIRM MR DAUMAN A DIRECTOR OF VIACOM SINCE 1987 WAS MADE SENIOR VICE PRESIDENT AND GENERAL COUNSEL THOUGH HE TYPICALLY LEAVES DAYTODAY MANAGEMENT TO MR BIONDI MR REDSTONE HAS BEEN THE FRONT MAN FOR THE PARAMOUNT MERGER APPEARING AT NEWS CONFERENCES LOBBYING IN WASHINGTON GIVING SPEECHES AND CROWING ABOUT THE BENEFITS OF A VIACOMPARAMOUNT MERGER WHILE ATTACKING RIVAL QVC AS A MERE SHOPPING CHANNEL HE HAS ALSO BEEN THE UNLIKELY CHAMPION OF ONE OF VIACOM'S MOST CONTROVERSIAL PROGRAMMING ASSETS BEAVIS & BUTTHEAD THE SCABROUS TEEN CARTOON SHOW ON MTV THAT HE FREQUENTLY CITES AS AN EXAMPLE OF HOW VIACOM AND PARAMOUNT WILL FIND SYNERGY PARAMOUNT WILL MAKE A MOVIE VERSION IF THE DEAL GOES THROUGH HE SAYS MR REDSTONE WHO OFTEN SHOUTS TO MAKE A POINT OCCASIONALLY LOSES HIS TEMPER WITH SUBORDINATES HIS TENACITY IS WELLKNOWN IN THE INDUSTRY AS IS THE STORY OF HOW HE SURVIVED A FIRE IN 1979 AT THE BOSTON COPLEY PLAZA HOTEL BY HANGING FROM A WINDOWSILL BY HIS FINGERTIPS MR REDSTONE WHO ONCE SERVED AS A SPECIAL ASSISTANT TO THE US ATTORNEY GENERAL AND HAS TAUGHT AT BOSTON UNIVERSITY LAW SCHOOL IS REGARDED AS ONE OF THE MOST LITIGIOUS MOGULS IN THE ENTERTAINMENT BUSINESS SOON AFTER ACQUIRING VIACOM HE MOUNTED A 25 BILLION LAWSUIT AGAINST TIME WARNER INC AND ITS HOME BOX OFFICE UNIT CHARGING THAT HBO MONOPOLIZED THE PAYTV BUSINESS AND DAMAGED VIACOM'S SHOWTIME UNIT TIME WARNER EVENTUALLY SETTLED MAKING CONCESSIONS TO VIACOM MR REDSTONE'S TACTIC IN THE PARAMOUNT FIGHT HAS BEEN TO FILE A HUGE ANTITRUST SUIT AGAINST QVC'S MAIN BACKER TELECOMMUNICATIONS INC MR REDSTONE HAS ALSO ATTACKED TCI CHIEF EXECUTIVE JOHN MALONE PAINTING HIM AS AN EVIL MONOPOLIST AND WINNING THE CABLE MOGUL'S PERSONAL ENMITY MR REDSTONE ALSO DIDN'T WIN FRIENDS AT ALLEN & CO WHICH WAS ONE OF HIS LONGTIME INVESTMENT ADVISERS ALLEN HAD SUGGESTED A MERGER WITH PARAMOUNT MORE THAN A YEAR BEFORE BUT VIACOM DECLINED TO PROCEED AT THE TIME WHEN VIACOM DID GO AHEAD IT CHOSE SMITH BARNEY SHEARSON AS AN ADVISER MR REDSTONE SENT A 1 MILLION CHECK TO ALLEN & CO THANKING THE BANK FOR ITS PAST WORK ALLEN RETURNED IT WITH THE EXPLANATION THAT THE COMPANY DIDN'T ACCEPT FEES FOR WORK IT DIDN'T DO BESIDES ALLEN BY THEN HAD FOR SOME TIME BEEN ADVISING ANOTHER PARAMOUNT SUITOR SHORTLY AFTERWARD THAT SUITOR QVC MADE THE HOSTILE BID THAT HAS PUSHED MR REDSTONE'S OWN BID CONSIDERABLY HIGHER THAN HE ORIGINALLY ANTICIPATED 9311160102 931115 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9311160101 931116 KMART REPORTS PROFIT FELL 23 IN ITS 3RD PERIOD BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP STILL HAVING PROBLEMS SELLING APPAREL AND BURDENED BY LOSSES AT ITS PACE MEMBERSHIP WAREHOUSE UNIT SAID FISCAL THIRDQUARTER NET INCOME FELL 23 IN THE PERIOD ENDED OCT 27 THE NATION'S NO 2 RETAILER EARNED 94 MILLION OR 20 CENTS A SHARE DOWN FROM 122 MILLION OR 27 CENTS A SHARE A YEAR EARLIER SALES ROSE 10 TO 977 BILLION FROM 884 BILLION BUT SALES AT STORES OPEN AT LEAST A YEAR A BETTER INDICATOR OF A RETAILER'S PERFORMANCE INCHED UP JUST 3 KMART'S SPECIALTY STORES WHICH HAVEN'T LIVED UP TO ANALYSTS' EXPECTATIONS SINCE THE TROY MICH COMPANY BEGAN BUYING THEM IN THE 1980S CONTINUED TO LIMP ALONG OPERATING PROFIT PLUNGED 31 AT ITS PAYLESS DRUGSTORES UNIT AND THE OPERATING LOSS AT PACE WIDENED TO 24 MILLION FROM 4 MILLION THE COMPANY IS SHEDDING BOTH UNITS AND HAS SAID IT'S CONSIDERING SELLING MINORITY STAKES IN FOUR OTHER SPECIALTY CHAINS TO THE PUBLIC MORE TROUBLESOME HOWEVER IS THAT KMART'S HALFCOMPLETED 3 BILLION PLAN TO IMPROVE ITS CORE DISCOUNT STORES ISN'T WORKING YET FOR ONE THING THE 2438 STORES MUST SELL MORE CLOTHING WHICH CARRIES A HIGHER PROFIT MARGIN TO HELP RAISE KMART'S EARNINGS WHICH HAVE BEEN FLAT FOR FIVE YEARS UNSEASONABLE WEATHER AND CONSUMER CAUTION HAVE HURT MANY APPAREL RETAILERS BUT UNLIKE GAP INC OR DAYTON HUDSON CORP'S TARGET DISCOUNT STORES KMART HAS THE ADDED BURDEN OF OVERCOMING ITS ACKNOWLEDGED POLYESTER PALACE IMAGE IN THE LATEST QUARTER KMART'S GROSS PROFIT MARGIN SLIPPED TO 241 OF SALES FROM 242 A YEAR EARLIER KMART WARNED WALL STREET THIS MONTH TO EXPECT AN EARNINGS DECLINE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ITS SHARES CLOSED AT 2325 UNCHANGED CONSUMER SURVEYS INDICATE THAT DISCOUNTERS WILL BE THE MOST POPULAR SHOPPING STOPS THIS HOLIDAY SEASON BUT IT'S UNCLEAR HOW MUCH THAT WILL BENEFIT KMART SO FAR THIS YEAR ITS MONTHLY SAMESTORE SALES GAINS HAVE LAGGED BEHIND THOSE OF COMPETITORS ESPECIALLY NO 1 RETAILER WALMART STORES INC WHICH IS PERCEIVED TO HAVE BETTERLOOKING STORES AND LOWER PRICES IN THE FIRST NINE MONTHS KMART'S NET INCLUDING CHARGES OF 27 MILLION FOR DEBT REDEMPTION AND ACCOUNTING CHANGES PLUNGED 46 TO 219 MILLION OR 47 CENTS A SHARE FROM 406 MILLION OR 89 CENTS A SHARE SALES ROSE 10 TO 29 BILLION FROM 2625 BILLION 9311160100 931116 A HEALTH PLAN GOOD ENOUGH FOR SENATORS BY DON NICKLES IT IS SHEER FOLLY TO BELIEVE THE FEDERAL GOVERNMENT IS CAPABLE OF ADEPTLY MANAGING AN INDUSTRY THAT CONSTITUTES ONESEVENTH OF OUR NATION'S ECONOMY A NOTION EMBRACED BY PRESIDENT CLINTON IN HIS HEALTH CARE REFORM LEGISLATION THIS WEEK OVER THREEDOZEN OF MY HOUSE AND SENATE COLLEAGUES AND I ARE INTRODUCING HEALTH CARE LEGISLATION THAT ESCHEWS THE BIGGOVERNMENT SOLUTIONS OF THE PRESIDENT OUR PROPOSAL THE CONSUMER CHOICE AND PERSONAL HEALTH SECURITY ACT IS A GIANT DEPARTURE FROM THE CLINTON GOVERNMENTKNOWSBEST PLAN WHICH RADICALLY RESTRICTS CONSUMER CHOICES AND OUTLAWS NEARLY EVERY HEALTH PLAN NOW IN EXISTENCE THE CONCEPT WE HAVE FOLLOWED IN OUR LEGISLATION HAS BEEN ENDORSED BY LIBERALS AS WELL AS CONSERVATIVES THE CONSUMER CHOICE PLAN IS MODELED ON THE 33YEAROLD FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM WITH LITTLE BUREAUCRACY AND ALMOST NO RED TAPE THE FEHBP PROVIDES NEARLY 10 MILLION FEDERAL EMPLOYEES MEMBERS OF CONGRESS RETIREES AND THEIR DEPENDENTS WITH A RANGE OF CHOICES IN COVERAGE AND SERVICES ALL FEHBP PLANS MUST MEET MINIMUM STANDARDS BUT BEYOND THAT THEY'RE ON THEIR OWN AND WHAT DOES THIS KIND OF MARKET COMPETITION YIELD THE FEHBP OFFERS DOZENS OF PLANS THAT PROVIDE ACCESS TO A VARIETY OF BENEFITS AT A WIDE RANGE OF PRICES HIGH AND STANDARDOPTION BLUE CROSS AND BLUE SHIELD COVERAGE UNIONRUN PLANS PREFERRED PROVIDER PLANS PPOS AND HEALTHMAINTENANCE PLANS HMOS THIS CONSUMER CHOICE IN A COMPETITIVE MARKET IS LARGELY RESPONSIBLE FOR THE STRONG TRACK RECORD OF FEHBP THE RATE OF FEHBP PREMIUM INCREASES HAS AVERAGED ONETHIRD LESS THAN PRIVATE EMPLOYERPROVIDED PLANS DURING THE PAST 15 YEARS WE THINK CONSUMERS ARE JUST AS SMART AS THE MILLIONS OF FEDERAL WORKERS AND MEMBERS OF CONGRESS WHO HAVE BEEN CHOOSING THEIR PLANS FOR THREE DECADES WHILE INDIVIDUAL TAX CREDITS WOULD REPLACE THE CURRENT TAX EXCLUSION FOR COMPANYSPONSORED HEALTH PROGRAMS THE CONSUMER CHOICE PLAN WOULD PRESERVE EMPLOYERPROVIDED COVERAGE HOWEVER IT WOULD BE THE EMPLOYEE'S DECISION TO DETERMINE WHETHER TO REMAIN IN THE COMPANY PLAN OR CHOOSE SOMETHING DIFFERENT IF A WORKER WANTED TO SWITCH THE EMPLOYER WOULD BE REQUIRED TO CASH OUT THE VALUE OF THE HEALTH BENEFITS THE EMPLOYEE RECEIVES THAT MONEY WOULD BE ADDED TO THE WORKER'S PAYCHECK WITH A COMBINATION OF THIS MONEY AND THE TAX CREDIT THE EMPLOYEE COULD SHOP FOR ANOTHER PLAN ONE THAT PROVIDES ADDITIONAL BENEFITS FOR THE SAME MONEY OR PERHAPS FEWER BENEFITS FOR FEWER DOLLARS THE TAX CREDITS ARE ALSO REFUNDABLE MEANING THAT IF THE VALUE OF THE CREDIT IS MORE THAN AN INDIVIDUAL'S OR FAMILY'S TAX LIABILITY THE GOVERNMENT WOULD PAY THE DIFFERENCE MUCH LIKE THE EARNED INCOME TAX CREDIT EITC EMPLOYERS WOULD REDUCE THEIR TAX LIABILITY AND PROVIDE THE ADDED INCOME DIRECTLY TO THE EMPLOYEE'S PAYCHECK WHATEVER THE INDIVIDUAL SAVES AFTER TAXES COULD BE USED FOR OTHER HOUSEHOLD EXPENSES THE ONLY REQUIREMENT WE WOULD MAKE WOULD BE THAT EACH HOUSEHOLD PURCHASE CATASTROPHIC INSURANCE THERE WOULD BE NO GOVERNMENT COERCION TO PURCHASE BENEFITS NOT WANTED OR NEEDED INSURANCE COSTS OUTOFPOCKET EXPENDITURES AND CONTRIBUTIONS TO A MEDICAL SAVINGS ACCOUNT WHICH WE PROPOSE IN OUR LEGISLATION WOULD BE ELIGIBLE FOR A SLIDINGSCALE TAX CREDIT BASED ON INCOME AND TOTAL MEDICAL EXPENSES AT A MINIMUM FOR EVERY 100 SPENT ON HEALTH INSURANCE PREMIUMS CONTRIBUTIONS TO A MEDICAL SAVINGS ACCOUNT OR ANY OUTOFPOCKET MEDICAL EXPENSES THE INDIVIDUAL OR FAMILY WOULD PAY 25 LESS IN TAXES PEOPLE WHOSE HEALTH EXPENSES CONSUME 10 OR MORE OF INCOME WOULD GET A BIGGER TAX CREDIT AS MUCH AS 75 PER 100 SPENT ON HEALTH CARE THE CHANGES WE ARE PROPOSING MEAN HEALTH INSURANCE WOULD BECOME PORTABLE THE HEALTH PLANS WOULD BELONG TO THE CONSUMER THERE IS NO REASON MEDICAL BENEFITS SHOULD BE TIED TO AN EMPLOYER CAR INSURANCE ISN'T HOMEOWNER'S OR RENTER'S INSURANCE ISN'T WHY SHOULD HEALTH INSURANCE BE ANY DIFFERENT MOREOVER BY PROVIDING UNIVERSAL TAX CREDITS MEDICAL BENEFITS WOULD BE UNIVERSALLY AVAILABLE OUR PLAN WHICH IS LESS THAN 200 PAGES LONG COMPARED WITH PRESIDENT CLINTON'S 1342 PAGE BILL INCLUDES A VARIETY OF INSURANCE REFORMS TO MAKE SURE PEOPLE AREN'T STRIPPED OF THEIR INSURANCE IF THEY BECOME ILL OR HAVE AN ACCIDENT AND THEY WON'T BE DENIED INSURANCE BECAUSE OF A PREEXISTING ILLNESS COMPETITION IN OUR CONSUMERCHOICE SYSTEM WILL HOLD DOWN HEALTH CARE COSTS WE ALSO PROPOSE TO BRING COSTS UNDER CONTROL BY CAPPING MEDICAL MALPRACTICE AND DAMAGE AWARDS LIMITING LAWYERS' FEES LIFTING REGULATORY BURDENS ON PROVIDERS AND REDUCING PAPERWORK BUT ANOTHER FACTOR WILL BE AT WORK IN THIS KIND OF SYSTEM ONE OF THE DRIVING FORCES BEHIND HEALTH CARE COST INFLATION IS THE FACT THAT 80 OF THE PUBLIC RECEIVING INSURANCE COVERAGE ON THE JOB CONSIDERS IT A FREE COMMODITY AS LONG AS WE THINK SOMEBODY ELSE IS PAYING FOR OUR HEALTH CARE WE WILL CONTINUE TO OVERCONSUME OR CONSUME UNWISELY UNDER THE CONSUMER CHOICE HEALTH PLAN WE ENCOURAGE INDIVIDUAL RESPONSIBILITY THERE IS NO DOUBT THAT WE ARE MORE FRUGAL WITH OUR OWN MONEY THAN WITH OUR EMPLOYER'S OR THE GOVERNMENT'S MONEY HEALTH CARE REFORM IS INDEED A COMPLEX ISSUE OUR PLAN SEEKS A STRAIGHTFORWARD SOLUTION FOR PROVIDING CHOICE AND CARE IT IS WRONG TO THINK HOWEVER THAT THE PROBLEMS WE FACE IN HEALTH CARE REQUIRE THE KIND OF INVASIVE BIGGOVERNMENT SURGERY PROPOSED BY THE CLINTON ADMINISTRATION THE CURE COULD BE PROVIDED BY A SIMPLE DOSE OF CHOICE AND COMPETITION MR NICKLES A REPUBLICAN FROM OKLAHOMA CHAIRS THE US SENATE REPUBLICAN POLICY COMMITTEE 9311160099 931116 ABREAST OF THE MARKET INDUSTRIALS FALL 699 AMID WORRY OVER NAFTA VOTE INTEREST RATES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS INCHED LOWER AMID CONCERN ABOUT THE FATE OF THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE DIRECTION OF INTEREST RATES A STRONG REPORT ON INDUSTRIAL OUTPUT WAS ALSO VIEWED AS A NEGATIVE INFLUENCE ON SHARE PRICES THE DOW JONES INDUSTRIAL AVERAGE SPENT NEARLY THE ENTIRE SESSION IN NEGATIVE TERRITORY DOWN AS MUCH AS 14 POINTS BEFORE FINISHING WITH A LOSS OF 699 OR 019 AT 367752 BROADER NEW YORK STOCK EXCHANGEDOMINATED AVERAGES FELL SOMEWHAT MORE THAN THE INDUSTRIAL AVERAGE BUT WERE STILL STRONGER THAN THE NASDAQ COMPOSITE INDEX WHICH TUMBLED 687 OR 088 TO 77245 HURT BY WEAK TECHNOLOGY STOCKS DECLINING BIG BOARD ISSUES OUTPACED ADVANCERS BY 1256 TO 827 VOLUME ON THE EXCHANGE REACHED 2487 MILLION SHARES DOWN FROM 3223 MILLION FRIDAY TRADERS AND ANALYSTS SAID INVESTORS ARE RELUCTANT TO MAKE SIGNIFICANT MOVES IN THE MARKET AHEAD OF TOMORROW'S EXPECTED HOUSE VOTE ON NAFTA MOST ANALYSTS SAY STOCK PRICES HAVE BEEN BID UP IN ANTICIPATION OF A VICTORY FOR THE TREATY BUT AS RECENTLY AS YESTERDAY A CLINTON ADMINISTRATION SPOKESWOMAN SAID NAFTA STILL DOESN'T HAVE ENOUGH SUPPORT AMONG LAWMAKERS TO ENSURE PASSAGE ANALYSTS EXPECT STOCKS TO TUMBLE AT LEAST BRIEFLY IF THE TREATY FAILS TO PASS POSITIVE ECONOMIC NEWS INCLUDING READINGS ON OCTOBER INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION DID LITTLE TO INSPIRE BUYING IN STOCKS SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP SAID INVESTORS WORRIED THAT STRONGER GROWTH WILL FORCE THE FEDERAL RESERVE BOARD TO TIGHTEN CREDIT STOCKS TOOK THEIR CUES MUCH OF THE DAY FROM THE BOND MARKET THE 30YEAR BOND WAS OFF MORE THAN 1/2 POINT DURING THE SESSION BUT RECOVERED TO END DOWN JUST 1/16 POINT ITS YIELD HELD AT 615 THE STANDARD & POOR'S 500 STOCK INDEX LOST 164 OR 035 TO 46375 AND THE NEW YORK STOCK EXCHANGE COMPOSITE FELL 099 OR 038 TO 25658 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX DECLINED 179 OR 037 TO 47781 SCOTT MARSH HEAD OF BLOCK TRADING AT DEAN WITTER REYNOLDS SAID THAT WITH PRICES STILL WITHIN STRIKING DISTANCE OF NEW HIGHS STOCKS COULD BE IN FOR A TUMBLE IF NAFTA IS DEFEATED BUT ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS EXPECTS STOCKS TO FALL NEAR TERM WIN OR LOSE FOR NAFTA UNFORTUNATELY WE ARE IN A LOSELOSE SITUATION I DON'T THINK THERE IS MUCH ROOM FOR A VICTORY CELEBRATION AT THESE LEVELS HE SAID THE INDUSTRIAL AVERAGE IS JUST 20 POINTS FROM THE RECORD IT SET EARLY THIS MONTH SHARES OF THE MAJOR TELEVISION NETWORKS JUMPED AFTER A COURT RULED THE NETWORKS CAN TAKE A FINANCIAL STAKE IN TV SHOWS PRODUCED BY OUTSIDERS PRUDENTIAL SECURITIES UPGRADED RATINGS ON CAPITAL CITIES/ABC AND CBS TO BUY FROM HOLD FOLLOWING THE NEWS CAP CITIES ROSE 11 5/8 TO 630 3/4 CBS GAINED 8 1/4 TO 303 1/8 AND GENERAL ELECTRIC THE PARENT OF NBC CLIMBED 3/8 TO 94 1/4 UAL TUMBLED 5 3/4 TO 142 5/8 THE COMPANY REJECTED A PROPOSAL BY ITS PILOTS AND MACHINISTS TO ACQUIRE A 60 STAKE IN THE CORPORATION WHICH IS THE PARENT OF UNITED AIRLINES BEAR STEARNS DOWNGRADED THE STOCK TO BUY FROM STRONG BUY IN PART CITING UAL'S MOVE PARAMOUNT COMMUNICATIONS TUMBLED 2 7/8 TO 80 1/8 ON HEAVY VOLUME OF 27 MILLION SHARES DESPITE NEWS THAT QVC NETWORK SWEETENED ITS BID FOR THE NEW YORK MEDIA COMPANY TO 106 BILLION QVC TODAY WILL TRY TO PERSUADE THE DELAWARE CHANCERY COURT TO NULLIFY A SOCALLED LOCKUP AGREEMENT THAT WOULD REQUIRE IT TO PAY 600 MILLION TO VIACOM TO COMPLETE A PURCHASE SHARES OF VIACOM WHICH ALREADY HAS AGREED TO PURCHASE PARAMOUNT LOST 1 1/2 TO 53 1/8 ON THE AMEX QVC'S STOCK JUMPED 2 1/8 TO 51 3/4 ON THE NASDAQ STOCK MARKET TOYS R US DROPPED 2 1/4 TO 40 5/8 AFTER THE RETAILER REPORTED THIRDQUARTER NET INCOME OF 13 CENTS A SHARE JUST ABOVE THE 12 CENTS IT EARNED A YEAR AGO THE RESULTS WERE IN LINE WITH EXPECTATIONS SOME TIED THE WEAKNESS TO A SNAP BACK FROM THE SHARP GAINS THAT THE STOCK RECORDED LAST WEEK SEMICONDUCTOR STOCKS WERE THE WEAKEST IN THE TECHNOLOGY GROUP ANALYSTS SAID THERE WAS NO NEWS TO ACCOUNT FOR THE SLIDE THE CHIP STOCK GROUP THOUGH SURGED LAST WEEK MOTOROLA FELL 2 1/8 TO 100 7/8 AND INTEL WAS OFF 2 3/4 TO 60 ON NASDAQ SHARES OF THE BIG THREE AUTO MAKERS ADVANCED AFTER AN IMPROVED READING ON SALES ACCORDING TO THE MAJOR PRODUCERS SALES ROSE TO A SEVEN MILLIONUNIT ANNUAL RATE IN EARLY NOVEMBER FROM A 69 MILLION RATE IN LATE OCTOBER FORD MOTOR ROSE 1/4 TO 62 1/8 CHRYSLER 1/2 TO 55 3/8 AND GENERAL MOTORS 3/8 TO 51 1/2 CATERPILLAR GAINED 5/8 TO 89 7/8 THE UNITED AUTO WORKERS UNION ENDED A STRIKE AGAINST THE HEAVYEQUIPMENT MAKER AFTER JUST THREE DAYS OFF THE JOB SEPARATELY CHAIRMAN DONALD FITES TOLD ANALYSTS THE COMPANY WILL CUT BACK ON CAPITAL SPENDING AND EMPHASIZE DEBT REDUCTION AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO LOST 1 1/4 TO 54 3/8 THE TELEPHONE COMPANY ISSUE HAS RISEN AND FALLEN RECENTLY ALONG WITH HOPES FOR PASSAGE OF NAFTA IT RALLIED LATE LAST WEEK PHILIP MORRIS LOST 1 1/8 TO 57 7/8 IT WAS DOWNGRADED TO HOLD FROM BUY BY AG EDWARDS & SONS IT HAS GAINED RECENTLY ON HOPES FOR HIGHER CIGARETTE PRICES 9311160098 931116 LEISURE & ARTS BOOKSHELF GAYS AND FAMILY VALUES BY JONATHAN RAUCH OF ALL THE SINKHOLES IN AMERICAN POLITICS THE DEBATE OVER HOMOSEXUALITY IS THE RANKEST THE ABORTION DEBATE IS JUST AS CONTENTIOUS AND MUCH BROADER IN SCOPE BUT IT CONCERNS A LIFEANDDEATH ISSUE OF PRINCIPLE IN THE CASE OF HOMOSEXUALITY THERE IS NO SUCH DIGNIFIED ETHICAL CORE RATHER A JUMBLE OF PARANOIAS AND NEUROSES AND SIDE AGENDAS AND MYTHS WHICH COMBINE TO CREATE A SOCIAL ARGUMENT THAT IS BOTH OVERWROUGHT AND POINTLESS RECENTLY THERE ARE SIGNS OF IMPROVEMENT MANY CONSERVATIVES ARE THINKING MORE CAREFULLY AND HUMANELY ABOUT HOMOSEXUALITY AND MANY GAY ACTIVISTS AND INTELLECTUALS ARE MOVING TOWARD THE CENTER NOW COMES BRUCE BAWER A RIGHTISH CULTURAL CRITIC BASED IN NEW YORK WHO OFTEN WRITES BOOK REVIEWS FOR THIS PAPER WITH THE BRACINGLY RATIONAL PASSION OF A WRITER WHO CAN THINK AND FEEL AT THE SAME TIME IN A PLACE AT THE TABLE POSEIDON 269 PAGES 21 HE CHARTS A PATH OUT OF THE SWAMP AT THE BOOK'S CORE IS THIS PROPOSITION IN AND OF ITSELF HOMOSEXUALITY IS MORALLY NEUTRAL AND WITHOUT INTEREST TO MR BAWER HOMOSEXUALITY BEARS NO POLITICAL IMPLICATIONS AND POSES FEW SOCIAL PROBLEMS OF ANY KIND WHAT DOES POSE PROBLEMS FOR HIM IS HUMAN SEXUALITY OF WHATEVER VARIETY WHEN IT IS NOT CHANNELED THROUGH THE BOURGEOIS INSTITUTIONS THAT TEMPER LUST AND CAPRICE MARRIAGE MONOGAMY THE EXPECTATION THAT PEOPLE WILL SETTLE DOWN AND TAKE CARE OF EACH OTHER LIKE IT OR NOT MR BAWER ARGUES SOME PEOPLE TURN OUT TO BE HOMOSEXUAL THEY SHOULD EXPECT AND BE EXPECTED TO FOLLOW THE SAME RULES AS HETEROSEXUALS THEY SHOULD BE SOCIALIZED JUST AS HETEROSEXUALS ARE SOCIALIZED END OF PROBLEM MR BAWER IS HERE ARGUING THE BRIEF OF THAT MOST FORLORN OF AMERICAN CREATURES THE BOURGEOIS HOMOSEXUAL AND IN PARTICULAR THE MALE VARIETY CITING WHAT HE FEELS ARE FUNDAMENTAL DIFFERENCES IN SEXUALITY AND ATTITUDES HE LEAVES GAY WOMEN MOSTLY OUT OF HIS ACCOUNT ACTIVISTS ON BOTH SIDES HAVE DONE THEIR BEST TO PAINT BOURGEOIS HOMOSEXUALS OUT OF EXISTENCE ANTIGAY RIGHTWINGERS BECAUSE THEY ARE HOMOSEXUAL GAY LEFTWINGERS BECAUSE THEY ARE BOURGEOIS INDEED SAYS MR BAWER ANTIGAY OBSESSIVES AND GAY RADICALS HAVE FORMED A KIND OF SICK MUTUAL DEPENDENCY ON THE GAY LEFT IS A GROUP THAT BELIEVES HORMONES CARRY POLITICAL BAGGAGE WHILE ACKNOWLEDGING THAT PIONEERING RADICALS HAVE IMPROVED LIFE FOR GAY CONSERVATIVES LIKE HIMSELF MR BAWER IS SCATHING ON THE RADICALS' EXCESSES MANY RADICAL GAY ACTIVISTS PERPETUATE AT EVERY TURN THE WIDESPREAD VIEW OF HOMOSEXUALS AS FREAKS OUTLAWS SEX ADDICTS AND SEXUAL EXHIBITIONISTS HE WRITES OF A GAYPRIDE MARCH IN NEW YORK HE SAYS IF JERRY FALWELL OR PAT ROBERTSON HAD WANTED TO ORCHESTRATE AN ANNUAL SPECTACLE DESIGNED TO INCREASE HOSTILITY TOWARD GAYS THEY COULD HARDLY HAVE DONE A BETTER JOB THAN THIS THE DAMAGE DONE BY GAY ACTIVISTS' KNEEJERK RADICALISM FOR HIM IS ONLY SECONDARILY POLITICAL MORE IMPORTANT IS THAT MANY GAY PEOPLE LOATHE AND DENY THEIR HOMOSEXUALITY PARTLY OUT OF FEAR THAT TO BE GAY IS TO LOSE TOUCH WITH MAINSTREAM VALUES JUST AS BAD MANY A YOUNG MAN AFTER EMERGING FROM THE CLOSET MAY WELL FIND HIMSELF CLIMBING INTO WHAT IS ARGUABLY AN EVEN SMALLER CLOSET THAT OF THE SUBCULTURE CLONE HOWEVER MR BAWER'S MOST PASSIONATE AND POWERFUL PASSAGES ADDRESS THE ANTIGAY RIGHT HE SPEAKS NOT TO ANTIGAY OBSESSIVES WHO ARE NOT PERSUADABLE BUT TO MODERATE CONSERVATIVES THE SORT WHOM HE AS A CONSERVATIVE WRITER KNOWS WELL AND SKETCHES VIVIDLY SUCH PEOPLE ABHOR GAY MARRIAGE BUT WINK AT SECRET PROMISCUITY AND THIS IS THE CENTRAL IRONY OF GAY HISTORY THAT LAWS AND SOCIAL CONVENTIONS REGARDING HOMOSEXUALITY HAVE LONG HAD THE EFFECT OF DISCOURAGING MONOGAMOUS RELATIONSHIPS AND OF ENCOURAGING COVERT ONENIGHT STANDS SECRECY UNDERMINES SOCIALIZATION SECRET SEX IN PARKS OR BATHHOUSES REQUIRES LITTLE SOCIAL CONSENT OR NOTICE LIVING IN AN OPEN COMMITTED SAMESEX RELATIONSHIP REQUIRES THE UNDERSTANDING AND APPROVAL OF FAMILY FRIENDS NEIGHBORS EMPLOYERS THE GAY MAN WHO LIVES ALONE AND MAKES REGULAR TRIPS TO A PICKUP BAR IS CONFRONTED WITH CONSIDERABLY FEWER SOCIAL AND PROFESSIONAL PROBLEMS THAN THE ONE WHO LIVES IN A COMMITTED RELATIONSHIP WITH ANOTHER MAN SAYS MR BAWER AND THAT'S A BIG PART OF THE REASON FOR THE GAYSUBCULTURE PROMISCUITY OF THE 1970S SOME READERS WILL FIND MR BAWER'S BLACKANDWHITE TAXONOMY OF HUMAN SEXUALITY IN WHICH GAYS ARE GAY STRAIGHTS ARE STRAIGHT AND NEVER THE TWAIN SHALL MEET UNSATISFYINGLY SIMPLISTIC I THINK IT'S A REASONABLE FIRST APPROXIMATION OTHERS MAY WISH HE SAID MORE ABOUT THE PUBLICPOLICY IMPLICATIONS OF HIS IDEAS SOMETIMES HE TACKLES CONSERVATIVES' DUMB IDEAS WHILE SKIRTING SENSIBLE ONES SUCH AS THE VIEW THAT THE TWOPARENT FAMILY WITH CHILDREN IS SPECIAL AND SHOULD BE FAVORED BY PUBLIC POLICY AT THE EXPENSE OF SINGLE PEOPLE INCLUDING HOMOSEXUALS CHILDLESS COUPLES AGAIN INCLUDING HOMOSEXUALS AND THE NONPOOR ELDERLY THOSE THOUGH ARE CAVILS MOST BOOKS ABOUT HOMOSEXUALITY FIND FEW READERS BEYOND GAY PEOPLE AND ANTIGAY DIRECTMAILERS MR BAWER'S BRAVE BOOK DESERVES A GENERAL HEARING MR RAUCH IS AUTHOR OF KINDLY INQUISITORS THE NEW ATTACKS ON FREE THOUGHT UNIVERSITY OF CHICAGO PRESS 9311160097 931116 BUSINESS BRIEF PPG INDUSTRIES INC COMPANY CONTRIBUTES STOCK AND CASH TO PENSION FUND PPG INDUSTRIES INC SAID IT CONTRIBUTED 23 MILLION IN CASH AND 102 MILLION IN COMPANY COMMON STOCK TO ITS PENSION FUND THE PITTSBURGHBASED CHEMICAL COATINGS AND GLASS MAKER SAID IT WILL REPURCHASE ABOUT 15 MILLION COMMON SHARES OUTSTANDING THROUGH PRIVATE TRANSACTIONS OR IN THE OPEN MARKET TO REPLACE THE TREASURY SHARES CONTRIBUTED TO THE PENSION FUND BEFORE THE CONTRIBUTION PPG HAD 1061 MILLION SHARES OUTSTANDING THE PENSION FUND IS OVERFUNDED ON A HISTORICAL INVESTMENT RETURN BASIS THE COMPANY SAID THE CONTRIBUTION SHOULD HELP TO ASSURE THE SURPLUS IS MAINTAINED IT ADDED 9311160096 931116 LEISURE & ARTS AUCTION FALL SALES SHOW AN ART MARKET ON THE MEND BY ANN E BERMAN THE ART MARKET IS A DELICATELY BALANCED MECHANISM A RUBE GOLDBERG CONSTRUCTION OF PSYCHOLOGICAL GEARS AND ECONOMIC LEVERS PULL OUT A PIECE HERE OR THERE AND THE OPERATION FALTERS LATELY MARKET BALANCE HAS BEEN MORE THAN A LITTLE ASKEW BUT AS THE SALES OF IMPRESSIONIST MODERN AND CONTEMPORARY ART AT SOTHEBY'S AND CHRISTIE'S NOV 210 DEMONSTRATED ALL THE PIECES ARE AGAIN SLIPPING INTO PLACE IN FIVE EVENING SALES 1616 MILLION OF ART EVERYTHING FROM RENOIR TO SCHNABEL SOLD EASILY TO EAGER SOLVENT BUYERS FROM ALL OVER THE WORLD THE AVERAGE UNSOLD RATE WAS 20 A VAST IMPROVEMENT OVER THE 40 AND 50 RATES OF RECENT SEASONS CHICAGO DEALER RICHARD GRAY EXPLAINS THIS NEW MARKET HEALTH BY SAYING WE'VE ATTAINED A CRITICAL MASS OF BUYERS AND SELLERS IN THE RIGHT MIX AND A CLEAR AGREEMENT ABOUT CORRECT SECURE VALUES HE MIGHT HAVE ADDED THAT JUST A FEW SEASONS AGO EVERY ONE OF THESE ELEMENTS WAS MISSING AFTER THE JAPANESEORCHESTRATED ART BOOM OF THE LATE '80S AND SUBSEQUENT BUST THE AUCTION HOUSES FLOUNDERED AROUND TRYING TO GAUGE THE POSTBOOM MARKET PUSHED IN THE WRONG DIRECTION BY CONSIGNORS WHO COULD NOT ACCEPT THE FACT THAT THE PARTY WAS OVER COMPETITION FOR SCARCE PROPERTY PRODUCED OVERESTIMATED MEDIOCRE SALES FURTHER DISCOURAGING THE THINNING RANKS OF RECESSIONERA BUYERS POOR SALE RESULTS KEPT BUYERS AND SELLERS ON THE SIDELINES WAITING FOR SOME ASSURANCE THAT THE BOTTOM HAD BEEN REACHED IT HAS TAKEN THREE FULL YEARS BUT NOW AS NEW YORK DEALER ANDRE EMMERICH PUTS IT NOBODY THINKS PRICES ARE GOING TO GET ANY LOWER OF TODAY'S SELLERS CHRISTIE'S CHIEF EXECUTIVE OFFICER CHRISTOPHER BURGE SAYS WE NO LONGER HAVE TO GO THROUGH THE '80S ARE OVER' ROUTINE THERE IS PLENTY TO COMPARE WITH IN THE NEW SET OF PRICES WITH THE STOCK MARKET SOARING AND MORE DISPOSABLE INCOME TO GO AROUND BUYERS FROM ALL OVER THE WORLD LOOKED AT THIS SEASON'S REASONABLY ESTIMATED MATERIAL WITH NEWLY ACQUISITIVE EYES THE COLLECTION OF STANLEY J SEEGER PROVIDED THE PERFECT VEHICLE FOR BUYERS READY TO GET BACK INTO THE MARKET MR SEEGER AN AMERICAN COLLECTOR LIVING IN EUROPE HAD 88 WORKS ALL BY PABLO PICASSO OF VARYING QUALITY AND PURCHASED MOSTLY AT AUCTION DURING THE PAST 13 YEARS THE PRESALE BUZZ HAD LOUDLY QUESTIONED THE WISDOM OF OFFERING SO MANY WORKS BY A SINGLE ARTIST IN ONE EVENING NOT ALL OF THEM FRESH TO THE MARKET BUT ON NOV 4 A STANDINGROOMONLY CROWD OF AMERICAN AND EUROPEAN DEALERS AND COLLECTORS INCLUDING MANY FIRSTTIME BUYERS WAS WAITING THE AUCTION WAS 100 SOLD AND BROUGHT 32 MILLION A FIGURE IN EXCESS OF THE PROJECTED HIGH ESTIMATE IN RETROSPECT IT'S CLEAR THAT THIS EVENT HAD EVERY MARKET BASE COVERED NOT ONLY WERE SOTHEBY'S ESTIMATES UNUSUALLY LOW IN SOME CASES CONSIDERABLY BELOW WHAT MR SEEGER HAD PAID BUT THE SALE PROVIDED SOMETHING FOR EVERYONE IN EVERY PRICE RANGE AND IN EVERY MEDIUM AND PERIOD OF THE MOST FAMOUS PAINTER OF MODERN TIMES THERE'S A LOT OF MONEY OUT THERE AND PICASSO IS SEEN AS A VERY SAFE HAVEN SAYS NEW YORK PRIVATE DEALER JEFFREY LORIA IN THE END ENTHUSIASTIC BIDDERS CAUSED MOST LOTS TO SOAR BEYOND THEIR TEMPTING ESTIMATES WOMEN AND CHILDREN BY THE SEA 1932 BROUGHT 44 MILLION FROM AN AMERICAN COLLECTOR AN EARLY DRAWING STUDY FOR THE ACTOR/TWO PROFILES OF FERNANDE PURCHASED BY MR SEEGER JUST 18 MONTHS AGO FOR 825000 WENT TO THE 1991 UNDERBIDDER A COLLECTOR WHO HAD TO PAY 102 MILLION TO GET IT THIS TIME AT THE OTHER END OF THE SCALE A SMALL 1945 COLLAGE STILL LIFE WITH APPLES WAS BOUGHT FOR 13800 IN ALL MR SEEGER DIDN'T DO BADLY HAVING PAID A REPORTED 24 MILLION FOR HIS SHORTLIVED COLLECTION SOTHEBY'S SEEGER GAMBLE WAS BASED IN PART ON THE KNOWLEDGE THAT THE IMPRESSIONIST AND MODERN MARKET WAS ALREADY ON THE ROAD TO RECOVERY LAST SEASON'S SALES WHICH INCLUDED A 286 MILLION CEZANNE STILL LIFE WERE VERY SUCCESSFUL BUT EVEN IN A STRENGTHENING MARKET SOME AUCTIONS ARE LESS WELLENDOWED THAN OTHERS AND THIS SEASON'S GENERALLY LESS DESIRABLE MATERIAL PRODUCED SOLD RATES OF ONLY 68 AND 75 AT SOTHEBY'S AND CHRISTIE'S IMPRESSIONIST AND MODERN SALES STILL WHEN THE QUALITY AND PRICE WAS RIGHT BUYERS AT SOTHEBY'S WENT FOR EVERYTHING FROM THE DECORATIVE THE PONT NEUF BY ALBERT MARQUET AT 255500 ESTIMATE 80000100000 TO THE SEASON'S LONE BLOCKBUSTER A VIBRANT MATISSE PAPER CUTOUT OF 1951 THE WINE PRESS WHICH SOLD TO AN ANONYMOUS COLLECTOR AT A SURPRISINGLY STRONG 137 MILLION NOBODY WAS SURPRISED THAT CHRISTIE'S POTENTIAL TOP LOT MATERNITY BY RENOIR DID NOT SELL IT HAD BEEN ON THE MARKET AND WAS OVERESTIMATED AT 8 MILLION BUT DANCERS TAKING A BOW THE BALLERINAS A SHIMMERING PASTEL BY EDGAR DEGAS SOLD TO A EUROPEAN COLLECTOR FOR 7 MILLION FAR ABOVE ITS 350000450000 ESTIMATE AND ALTHOUGH THE SURREALIST MARKET IS SPOTTY THE SALE OF THE ASCENSION OF CHRIST A LATE WORK BY SALVADORE DALI AT 24 MILLION EST 15 MILLION2 MILLION SHOWED WHAT THE RIGHT PICTURE AND ESTIMATE CAN ACHIEVE A JAPANESEOWNED PAINTING LANDSCAPE WITH CHURCH BY WASSILY KANDINSKY SOLD FOR 27 MILLION REPORTEDLY ALMOST AS MUCH AS ITS OWNER HAD PAID FOR IT IN THE GOOD OLD DAYS THOSE DAYS DON'T SHOW ANY SIGNS OF COMING BACK SOON BUT EVEN THE CONTEMPORARY MARKET HARDEST HIT BY THE WITHDRAWAL OF SPECULATIVE MONEY IN 1990 HAS COME BACK TO LIFE JUST A SEASON LATER THAN ITS IMPRESSIONIST AND MODERN COUSIN PEOPLE HAD TURNED AWAY BECAUSE OF IMMENSE UNCERTAINTY SAYS ROBERT MNUCHIN OF C&M ARTS IN NEW YORK THEY NEEDED A SENSE OF WHAT WAS FAIR THEY FOUND IT IN THIS SEASON'S SELECTION OF CLASSIC EARLY WORK AT REASONABLE ESTIMATES AT CHRISTIE'S THE SEASON'S ACKNOWLEDGED CONTEMPORARY MASTERPIECE YEAR AFTER YEAR 1947 BY ARSHILE GORKY SOLD TO A CALIFORNIA COLLECTOR AT A RECORD 38 MILLION AND '50S AND '60S WORKS BY MORRIS LOUIS ADOLPH GOTTLIEB AND FRANCIS BACON ALL SOLD ABOVE ESTIMATE ELEGY NO 159 BY ROBERT MOTHERWELL WENT NOWHERE IN 1990 AT 400000500000 BUT HERE PEGGED AT 220000280000 IT SOLD TO AN AMERICAN COLLECTOR AT 387500 WHILE THE AGGRESSIVELY ESTIMATED UNTITLED BY CY TWOMBLY FAILED TO SELL AT 18 MILLION22 MILLION SOTHEBY'S SERVED UP SEMINAL WORKS FROM THE '60S BY DAVID HOCKNEY DONALD JUDD AND ROBERT INDIANA ALL BLEW BY THEIR ESTIMATES THE INDIANA AND JUDD MADE RECORD PRICES WORKS BY ALEXANDER CALDER SHONE AT BOTH SALES SOTHEBY'S LARGE STANDING MOBILE CONSTELLATION EST 500000700000 SOLD TO A PRIVATE AMERICAN BUYER AT 18 MILLION THE SALES SAID LESS ABOUT THE CURRENT MARKET FOR THE WORK OF YOUNGER ARTISTS ALTHOUGH JEFF KOONS'S NEW DOUBLE SHELTON WET DRY SOLD WITHIN ESTIMATE FOR 112500 AT SOTHEBY'S AND BOW 1984 BY GERHARD RICHTER BROUGHT A SUBSTANTIAL 266500 AT CHRISTIE'S THE MARKET MACHINE IS UP AND RUNNING AND FAMILIAR PATTERNS ARE REESTABLISHING THEMSELVES BUYERS ARE CLEARLY EAGER AND EVERYONE HOPES POTENTIAL CONSIGNORS WILL NOW BE ENCOURAGED TO PUT MORE MATERIAL ON THE BLOCK BUT IN THE AGEOLD GAME OF ARTMARKET GIVEANDTAKE THE BEST NEWS MAY BE THAT SELLERS ARE NOT RUSHING TO UNLOAD THEIR UNWANTED MASTERPIECES AS MR BURGE POINTS OUT THEY LIKE TO WAIT UNTIL THE PEAK AND THEY KNOW THIS ISN'T IT 9311160095 931116 MUTUAL FUNDS HARRIS FUNDS KEEP SHINING WITHOUT STAR BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WHO SAYS A MONEYMANAGEMENT FIRM HAS TO STUMBLE AFTER ITS STAR MUTUALFUND MANAGER QUITS NOT HARRIS ASSOCIATES LP WHICH IS REBOUNDING FROM A PAINFUL SETBACK NOW THAT A PAIR OF LEFTHANDED LIBERTARIAN KARATE ENTHUSIASTS ARE RUNNING ITS TWO MUTUAL FUNDS A YEAR AGO THE FIRM WAS ON THE ROPES CLIENTS WERE LEAVING STAR MANAGER RALPH WANGER HAD DEPARTED ALONG WITH HIS 17 BILLION ACORN FUND YANKING AWAY ABOUT 45 OF THE MONEY HARRIS WAS MANAGING THEN CAME TWO NEW STARS TWO STOCK MUTUAL FUNDS BORN IN THE PAST TWO YEARS THAT HAVE HANDILY BEATEN US AND INTERNATIONAL STOCK MARKETS THE TWO FUNDS' LEFTHANDED RIGHTWING YOUNG MANAGERS ROBERT SANBORN AND DAVID HERRO HAVE BECOME HEROES OF THE MUTUALFUND BOOM THIS BUSINESS IS SO GREAT IT'S SCARY SAYS MR SANBORN 35YEAROLD MANAGER OF THE 12 BILLION OAKMARK FUND AS HE LEAFS THROUGH A TWOINCHTHICK PILE OF CHATTY LETTERS FROM FUND SHAREHOLDERS I CAN'T BELIEVE I GET PAID TO DO IT THE OTHER NEW FUND IS 851 MILLION OAKMARK INTERNATIONAL WHERE MR HERRO'S CHIEF PROBLEM SEEMS MINOR AS HE GLOBE TROTS TO PLACES LIKE INDIA I'VE GOT TO TAKE ALL THIS ANTIMALARIA STUFF WHICH PRODUCES BAD DREAMS FOR INVESTORS HARRIS'S TURNAROUND SUGGESTS IT MAY BE MORE IMPORTANT TO FAVOR THE RIGHT STOCKPICKING STYLE AT THE RIGHT TIME THAN TO RELY ON A FUNDMANAGER CELEBRITY HARRIS OWES A DEBT TO A TURN IN THE INVESTMENT CYCLE THAT HAS FAVORED ITS BARGAINHUNTING VALUE INVESTMENT STYLE VALUE PICKERS CHOOSE STOCKS THAT APPEAR CHEAP COMPARED WITH VARIOUS YARDSTICKS SUCH AS CASH FLOW SINCE EARLY 1992 THE VALUE PLAYERS HAVE EASILY OUTRUN GROWTHSTOCK INVESTORS WHO BUY THE OFTENPRICEY STOCKS OF COMPANIES WITH FASTGROWING EARNINGS ALMOST FROM THEIR INCEPTION THE TWO NEW OAKMARK FUNDS HAVE HAD THE INVESTMENT WIND AT THEIR BACKS DURING ITS BRIEF LIFE OAKMARK FUND HAS BEATEN THE TOTAL RETURN OF ACORN WHICH DID PRETTY WELL ITSELF BEATING THE MARKET AVERAGES THEY'RE A FINE ORGANIZATION MR WANGER SAYS TERSELY I ALSO BELIEVE IN MOTHERHOOD AND THE AMERICAN FLAG IT WAS A TERRIBLE TIME FOR HARRIS WHOSE RESULTS HAD SUFFERED FOR THREE YEARS ALONG WITH OTHER VALUE MANAGERS' DISAPPOINTED CLIENTS SUCH AS THE ART INSTITUTE OF CHICAGO WERE LEAVING AFTER MR WANGER'S DEPARTURE IN MID1992 HARRIS'S ASSETS UNDER MANAGEMENT DROPPED TO 2 BILLION HALF OF THE PEAK LEVEL AT THE END OF 1989 NOW THEY'RE BACK UP TO 45 BILLION INCLUDING PENSION FUNDS AND PRIVATE ACCOUNTS ACORN FUND IN CONTRAST HAD DONE JUST FINE IN THE THREE YEARS THROUGH THE END OF 1991 ALTHOUGH MR WANGER WAS THE MOST VISIBLE MEMBER OF HARRIS HE WASN'T REALLY A VALUE STOCK PICKER IN THE HARRIS STYLE BUT AS MR WANGER DEPARTED THE INVESTMENT CYCLE HAD BEGUN TO TURN OAKMARK FUND LAUNCHED IN AUGUST 1991 WAS TURNING IN GREAT RESULTS BY SEPT 30 1992 IT HAD THE BEST ONEYEAR RECORD IN THE INDUSTRY WITH A TOTAL RETURN PRICE CHANGE PLUS REINVESTED DIVIDENDS OF 5204 NEWSLETTERS SUCH AS NOLOAD FUND INVESTOR AND FINANCIAL ADVISERS EMBRACED THE FUND CASH POURED IN PUSHING ITS ASSETS TO 329 MILLION AT THE START OF THIS YEAR HARRIS RAN ONLY ONE AD FOR OAKMARK FUND IN A NATIONAL MAGAZINE MR SANBORN PLACED A 300 AD IN THE DARTMOUTH ALUMNI MAGAZINE MR HERRO A FORMER RUGBY PLAYER SPENT 200 ON ADS FOR OAKMARK INTERNATIONAL IN PROGRAMS FOR THE CHICAGO BLAZE RUGBY FOOTBALL CLUB NEITHER MAN GOT REIMBURSED MR SANBORN A RUMPLED SIXFOOTONE HAS STEERED OAKMARK FUND TO A MARKETBEATING 273 GAIN SO FAR IN 1993 DESPITE HOLDING SUCH LOSING STOCKS AS PHILIP MORRIS COS ELI LILLY & CO AND AMERICAN HOME PRODUCTS CORP OUR WINNERS HAVE MORE THAN COMPENSATED HE SAYS TOP HOLDINGS OF OAKMARK FUND AS OF OCT 31 INCLUDE LOCKHEED CORP FIRST USA INC CABLEVISION SYSTEMS CORP TOTAL ADR ELI LILLY AMERICAN HOME PRODUCTS LIBERTY MEDIA CORP CLASS A PHILIP MORRIS AND MELLON BANK FIRST USA A CREDITCARD ISSUER THAT GAINED 418 IN THE 12 MONTHS THROUGH OCT 31 IS A CLASSIC HARRIS ASSOCIATES STOCK MR SANBORN SAYS THE STOCK SELLS FOR NINE TIMES ITS PERSHARE CASH FLOW IN THE 12 MONTHS THROUGH JUNE 30 ABOUT THREEFOURTHS THE MULTIPLE OF THE STANDARD & POOR'S 500 CASH FLOW AT FIRST USA IS HIGHERTHANREPORTED EARNINGS BECAUSE IT WRITES OFF GOODWILL AN INTANGIBLE ASSET MR SANBORN LOOKS TO CASH FLOW FOR AN ESTIMATE OF THE PRIVATE MARKET VALUE OF A BUSINESS THE PRICE A PRIVATE BUYER WOULD SPEND TO CONTROL THAT CASH FLOW HE BUYS STOCKS AT A DISCOUNT TO PRIVATE MARKET VALUE AND TENDS TO SELL WHEN THEY REACH IT MR SANBORN ALSO WON BIG WITH LIBERTY MEDIA AND TELECOMMUNICATIONS INC WHICH ARE TO BE TAKEN OVER BY BELL ATLANTIC CORP LIBERTY MEDIA HE SAYS WAS A DISCOVERY OF HARRIS'S RESEARCH DEPARTMENT HIS PROBLEM NOW FINDING STOCKS TO REPLACE THOSE TWO WHICH WERE ABOUT 8 OF OAKMARK FUND'S PORTFOLIO WHEN THE TAKEOVER WAS ANNOUNCED OAKMARK INTERNATIONAL OPENED TO THE PUBLIC ONLY A FEW MONTHS BEFORE INTERNATIONAL STOCKS ROARED BACK TO LIFE IN THE 10 MONTHS THROUGH OCTOBER OAKMARK INTERNATIONAL WAS UP 439 COMPARED WITH 355 FOR A BROAD MORGAN STANLEY INTERNATIONAL STOCK INDEX BUT WHILE MANY INVESTORS ABROAD GOT A BIG BOOST FROM JAPANESE STOCKS AND THE RISING YEN OAKMARK INTERNATIONAL DOESN'T HAVE ANY MONEY IN JAPAN ABOUT 60 OF ITS PORTFOLIO IS IN EUROPEAN STOCKS INCLUDING SVENSKA HANDELSBANKEN THE TOP SWEDISH BANK THE FUND'S SECONDBIGGEST HOLDING BRITISH ADVERTISER SAATCHI & SAATCHI CO IS A TURNAROUND SAYS THE 32YEAROLD MR HERRO THE OTHERS IN THE TOP FIVE HOLDINGS AS OF OCT 31 INCLUDED THE LARGEST UNION ELECTRICA FENOSA A SPANISH UTILITY GRUPO FINANCIERO BANCOMER A MEXICAN BANK KVAERNER A NORWEGIAN SHIPBUILDER AND SCITEX CORP AN ISRAELI PRINTING COMPANY CAPITALISTIC BENT I AM BULLISH ON EUROPEAN EQUITIES BUT NOT FOR THE REASON EVERYBODY ELSE IS MR HERRO SAYS MANY HOPE DECLINING EUROPEAN INTEREST RATES WILL GIVE STOCKS A BOOST BUT MR HERRO LIKES EUROPE BECAUSE IT IS BECOMING MORE CAPITALISTIC MOREOVER HE SAYS EUROPEAN COMPANIES ALREADY HAVE MORE SALES IN THE FASTGROWING EMERGING MARKETS OF SOUTHEAST ASIA FRANCE'S ALCATELALSTHOLM CGE ONE OF HIS TOP 10 HOLDINGS IS THE BIGGEST SUPPLIER OF TELECOMMUNICATIONS EQUIPMENT TO CHINA ALTHOUGH THEY WERE HIRED SEVERAL YEARS APART BOTH MEN ENJOY WADING THROUGH THICK ECONOMIC TOMES BOTH TALK VOLUBLY ABOUT THEIR LIBERTARIAN ECONOMIC PHILOSOPHIES VIEWS THAT THEY SAY AREN'T UNIVERSALLY SHARED AT THEIR FIRM THE US THEY SAY IS HEADING IN THE WRONG DIRECTION UNDER PRESIDENT CLINTON AS ECONOMIC LIBERTARIANS THEY FAVOR FREE MARKETS OVER GOVERNMENT INTERVENTION THEY COMPETE WITH EACH OTHER OVER THEIR FUNDS' PERFORMANCE OVER THEIR ENDURANCE AS BICYCLISTS AND OVER GOLF GAMES WHEN THEY WERE YOUNGER THEY BOTH STUDIED TAE KWON DO THE KOREAN VERSION OF KARATE THOUGH BOTH PROFESS TO BE RUSTY NOW MR SANBORN GOT A MIDDLING BLUE BELT WHILE MR HERRO GOT A HIGHER RED BELT THEY BOTH WORRY THAT SOME OF THEIR INVESTORS WILL RECOIL WHEN THE GOOD TIMES INEVITABLY END AFTER A GAIN OF 84 IN AUGUST OAKMARK INTERNATIONAL HAD A SLIGHTLY DOWN MONTH IN SEPTEMBER I WAS GETTING CALLS FROM SHAREHOLDERS ASKING WHAT'S WRONG WHY ARE WE LOSING MONEY' MR HERRO SAYS WE'VE HAD 10 QUARTERS AND WE'VE BEEN UP EVERY ONE MR SANBORN SAYS IT CAN'T KEEP UP FOREVER I REALIZE THAT AT SOME POINT I'M GOING TO HAVE MONEY FLOWING OUT OF THIS LIKE NO FUND IN THE HISTORY OF THE WORLD 9311160094 931116 INTERNATIONAL FRANCE DECLARES OPENING OF RHONEPOULENC OFFER SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY ANNOUNCED THE OPENING TODAY OF THE PUBLIC SHARE OFFER FOR CHEMICAL AND DRUG GROUP RHONEPOULENC SA THE OFFER WILL RUN THROUGH NOV 23 THE MOVE OPENS THE PRIVATIZATION BALL FOR THE SECOND TIME MR ALPHANDERY SAID AFTER A RECENT OFFERING FOR BANQUE NATIONALE DE PARIS MR ALPHANDERY STRESSED THE GOVERNMENT'S EAGERNESS TO MAKE THIS PRIVATIZATION LIKE THE ONE FOR BNP A POPULAR AND POPULIST PRIVATIZATION INDIVIDUAL SHAREHOLDERS WILL GET AT LEAST 60 OF THE 793 MILLION SHARES TO BE SOLD THROUGH PUBLIC OFFERS MR ALPHANDERY SAID THE OFFER PRICE OF 135 FRANCS 23 A SHARE GENERALLY MET ANALYSTS' PREDICTIONS THAT THE GOVERNMENT WOULD OFFER THE SHARES AT A STEEP DISCOUNT TO THE MARKET PRICE RHONEPOULENC SHARES CLOSED AT 1536 FRANCS UP 34 FRANCS ON THE PARIS BOURSE YESTERDAY DESPITE THE ANNOUNCEMENT THAT GROUP NINEMONTH PROFIT FELL 30 TO 776 MILLION FRANCS 1324 MILLION THE GOVERNMENT IS SELLING 43 OF RHONEPOULENC THROUGH A COMBINATION OF PUBLIC SHARE OFFERS TO INDIVIDUALS SEPARATE SALES TO INSTITUTIONAL INVESTORS AND SALES RESERVED FOR EMPLOYEES AND FORMER EMPLOYEES OF RHONEPOULENC 9311160093 931116 MARKETING BRIEF HALLMARK CARDS INC GOLDMAN SACHS IS RETAINED FOR ADVICE ON CABLE INTEREST HALLMARK CARDS INC KANSAS CITY MO SAID IT RETAINED GOLDMAN SACHS & CO TO HELP IT EVALUATE WHAT TO DO WITH ITS CABLETELEVISION UNIT IN RECENT MONTHS TELEPHONE COMPANIES HAVE COURTED MOST OF THE MAJOR CABLETELEVISION OPERATORS AS PART OF A RUSH TO FORM NEW TELECOMMUNICATIONS CONCERNS THE CLOSELY HELD GREETINGCARD CONCERN ENTERED THE CABLETELEVISION INDUSTRY IN 1991 BY FORMING DALLASBASED CROWN MEDIA INC THE CROWN MEDIA UNIT HAS ABOUT 800000 SUBSCRIBERS IN 15 STATES A HALLMARK SPOKESMAN WOULDN'T COMMENT ON WHETHER IT HAS BEEN APPROACHED BY ANY TELEPHONE COMPANIES INTERESTED IN CROWN MEDIA 9311160092 931116 TECHNOLOGY & HEALTH TOPSELLING DRUG OF MERCK RECEIVES NEW FDA APPROVAL BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WEST POINT PA BEGINNING A BIG MARKETING PUSH FOR ITS TOPSELLING PRODUCT MERCK & CO SAID THE HEART DRUG VASOTEC RECEIVED US FOOD AND DRUG ADMINISTRATION APPROVAL AS A TREATMENT TO SLOW THE DEVELOPMENT OF CONGESTIVE HEART FAILURE IN PATIENTS WITH EARLY SIGNS OF THE DISEASE VASOTEC WAS APPROVED AS A TREATMENT FOR MORE SERIOUS FORMS OF CONGESTIVE HEART FAILURE THE PROGRESSIVE WEAKENING OF THE HEART THAT EVENTUALLY PRODUCES SUCH SYMPTOMS AS FATIGUE SHORTNESS OF BREATH AND SWELLING OF THE LEGS AND ABDOMEN WITH THIS APPROVAL MERCK CAN URGE PHYSICIANS TO BEGIN VASOTEC THERAPY EARLIER AS SOON AS PATIENTS SHOW IMPAIRED HEART FUNCTION BUT BEFORE OTHER SYMPTOMS APPEAR IT ALSO GIVES MERCK A MUCHNEEDED NEW HOOK TO AGGRESSIVELY SELL VASOTEC AN ACEINHIBITOR WHOSE SALES PRIMARILY AS A TREATMENT FOR HIGH BLOOD PRESSURE HAVE MET INTENSE COMPETITION IN RECENT YEARS BUT IT COULD BE A HARD SELL EVEN THOUGH MERCK AND OTHER DRUG COMPANIES HAVE BEEN SELLING ACEINHIBITORS FOR HEART FAILURE FOR YEARS ONLY 30 OF SYMPTOMATIC HEARTFAILURE PATIENTS TAKE ACEINHIBITORS WHICH ARE A CLASS OF HEART DRUGS MERCK SAID THE NUMBER OF PEOPLE WITH EARLY INDICATIONS OF HEART FAILURE IS UNKNOWN BUT SUGGESTED THAT IT IS MUCH HIGHER THAN THE TWO MILLION TO THREE MILLION WITH SYMPTOMATIC HEART FAILURE HEART ATTACKS CORONARY ARTERY DISEASE OR LONGSTANDING HIGH BLOOD PRESSURE CAN CAUSE THE TYPE OF HEART DAMAGE THAT LEADS TO CONGESTIVE HEART FAILURE A KEY TARGET OF THE COMPANY'S SALES FORCE WILL BE PRIMARYCARE PHYSICIANS WHOSE USE OF ACEINHIBITORS TO TREAT HEART FAILURE IS LOW A MERCK SPOKESMAN SAID IN MARKETING THE DRUG TO MANAGEDCARE ORGANIZATIONS MERCK WILL CLAIM VASOTEC TREATMENT REDUCES HEARTFAILURE HOSPITALIZATIONS BY NEARLY ONETHIRD WHICH COULD SAVE 3 BILLION TO 4 BILLION A YEAR IN HOSPITAL COSTS NATIONWIDE IF THE TREATMENT WAS UNIVERSALLY USED MANAGEDCARE DRUG BUYERS WANT TO KNOW ABOUT NEW USES BECAUSE THEY DO SAVE A LOT OF MONEY SAID D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST ADDING MERCK DOES AN EXTREMELY GOOD JOB IN TALKING ABOUT COST BENEFITS THE FDA APPROVAL WAS BASED ON A STUDY PUBLISHED LAST YEAR THAT SHOWED PATIENTS WITH INITIAL SIGNS OF HEART DAMAGE WERE LESS LIKELY TO DEVELOP SYMPTOMS OF OVERT HEART FAILURE THAN SIMILAR PATIENTS TAKING A PLACEBO THE VASOTEC PATIENTS ALSO HAD 32 FEWER HOSPITALIZATIONS ANOTHER STUDY PUBLISHED AT THE SAME TIME FOUND SIMILAR RESULTS USING BRISTOLMYERS SQUIBB CO'S CAPOTEN WHICH WAS CLEARED IN SEPTEMBER AS AN EARLY TREATMENT FOR HEART FAILURE 9311160091 931116 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BANK OF BOSTON CORP 350 MILLION OF SUBORDINATED NOTES DUE DEC 1 2005 PRICED AS 6625S AT 9963 TO YIELD 667 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO VOLKSWAGEN AG 250 MILLION OF DEBT SECURITIES SOLD IN A TWOTRANCHE 144A BOND OFFERING UNDERWRITERS FOR THE OFFERING WHICH TOOK PLACE LAST WEEK WERE JP MORGAN & CO LEHMAN BROTHERS HOLDINGS INC AND GOLDMAN SACHS & CO THE NOTES WERE ISSUED BY VW CREDIT INC WITH A GUARANTEE FROM VOLKSWAGEN THE TWOTRANCHE OFFER INCLUDED 150 MILLION OF 575 NOTES DUE NOV 15 1998 PRICED AT 73 BASIS POINTS OVER THE FIVEYEAR TREASURY NOTE AND 100 MILLION OF 65 NOTES DUE NOV 15 2003 PRICED AT 88 BASIS POINTS OVER THE 10YEAR TREASURY NOTE FULCRUM TECHNOLOGIES INC INITIAL OFFERING OF 18 MILLION COMMON SHARES PRICED AT 11 APIECE THROUGH UNDERWRITERS LED BY PACIFIC GROWTH EQUITIES ROBERDS INC INITIAL OFFERING OF 27 MILLION COMMON SHARES PRICED AT 13 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO MASSACHUSETTS WATER RESOURCES AUTHORITY 4497 MILLION 1993 SERIES C GENERAL REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 275 IN 1994 TO 578 IN 2020 BOTH S&P AND FITCH INVESTORS SERVICE INC HAVE RATED THE BONDS SINGLEA MOODY'S IS EXPECTED TO ASSIGN A SINGLEA RATING BASQUE COUNTRY SPANISH PROVINCES 200 MILLION SWISS FRANCS OF 4375 PUBLIC BONDS DUE DEC 22 2003 PRICED AT 10075 VIA UNION BANK OF SWITZERLAND FEES 275 NAFIN FINANCE TRUST II SPECIALPURPOSE VEHICLE 1299 MILLION OF ASSETBACKED FLOATINGRATE EURONOTES DUE MARCH 31 1999 AT OPEN ISSUE AND REOFFER PRICE VIA KIDDER PEABODY INTERNATIONAL LTD BONDS SECURED ON LOAN OBLIGATIONS ORIGINATED IN MEXICO AND HELD BY BANCO NACIONAL DE MEXICO SA BANCOMER SA AND BANCA SERFIN SA TRUSTEE FOR ISSUE NACIONAL FINANCIERA SNC TRUST DIVISION PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 24 POINTS TO 27 POINTS EXPECTED MAXIMUM AVERAGE LIFE 21 YEARS CLEANUP CALL OPTION IF LESS THAN 5 OF BONDS OUTSTANDING FEES ONE NEW WORLD DEVELOPMENT BVI LTD HONG KONG PARENT 300 MILLION OF 4375 CONVERTIBLE EUROBONDS AT ISSUE PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD AND MORGAN STANLEY INTERNATIONAL INTERNATIONAL AND DOMESTIC TRANCHE GUARANTOR NEW WORLD DEVELOPMENT CO BONDS CONVERTIBLE INTO PARENT COMPANY SHARES FROM FEBRUARY 1994 TO NOVEMBER 2000 AT CONVERSION PRICE 3515 HONG KONG DOLLARS 2205 ABOVE MONDAY'S CLOSING SHARE PRICE BONDS CALLABLE AT 10425 IN FIRST YEAR DECLINING TO 10255 IN THIRD YEAR SUBJECT TO SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE FOR 20 CONSECUTIVE BUSINESS DAYS FROM FOURTH YEAR BONDS CALLABLE AT 1017 DECLINING TO PAR IN SIXTH YEAR FEES 25 PAYABLE SEMIANNUALLY STARS V INC SPECIALPURPOSE VEHICLE 90 MILLION OF FLOATINGRATE EURONOTES IN TWO TRANCHES DUE NOV 25 1998 AT ISSUE PRICE PAR VIA KIDDER PEABODY INTERNATIONAL LTD BONDS SECURED ON US MORTGAGERELATED SECURITIES HELD BY KIDDER PEABODY INC SENIOR 72 MILLION TRANCHE PAYS INTEREST QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS ONE POINT SUBORDINATED 18 MILLION TRANCHE OF PARTICIPATING NOTES HAS ZERO COUPON FEES UNDISCLOSED WUESTENROT FINANCE BV GERMAN PARENT 500 MILLION MARKS OF 575 EUROBONDS DUE JAN 7 1999 AT ISSUE PRICE 10255 VIA CSFBEFFECTENBANK AG RECOMMENDED REOFFER PRICE 1003 TO YIELD 568 A MARGIN OF 40 BASIS POINTS OVER COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR WUESTENROT HOLDING GMBH FEES 25 9311160090 931116 MARKETING & MEDIA TIME WARNER UNIT SLOWS DOWN PLAN FOR TV NETWORK IN FACE OF RIVAL EFFORT BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S WARNER BROS IS SLOWING DOWN PLANS FOR A FIFTH BROADCAST TELEVISION NETWORK IN THE WAKE OF RESISTANCE FROM STATIONS THAT ARE ALSO BEING WOOED BY A RIVAL NETWORK FROM PARAMOUNT COMMUNICATIONS INC AND CHRISCRAFT INDUSTRIES INC INDEPENDENT STATIONS THAT HAVE BEEN ASKED TO LINK UP WITH ONE OF THE TWO NETWORKS HAVE BALKED AT SEVERAL ELEMENTS OF WARNER'S PLANS FOR THE WB NETWORK INCLUDING A REQUIREMENT THAT EACH PAY UPFRONT A PERCENTAGE OF THE EXPECTED INCREASE IN PROFITS JAMIE KELLNER CHIEF EXECUTIVE OF THE WB NETWORK SAID YESTERDAY THAT THE AMOUNT STATIONS WILL BE REQUIRED TO PAY UPFRONT AS A GUARANTEE WILL BE LOWERED STATIONS WILL ULTIMATELY STILL HAVE TO PAY 25 OF THEIR INCREASE IN PROFITS BACK TO WARNER BROS TO COVER PROGRAMMING COSTS AS ORIGINALLY ANTICIPATED HOWEVER IN ADDITION WB WILL SLOW DOWN ITS ROLLOUT OF PROGRAMMING WHICH IS SCHEDULED TO BEGIN IN THE FALL OF 1994 PROGRAMMING ON WEEKDAYS FROM 122 PM 56 PM AND 101030 PM WILL BE INTRODUCED IN THE THIRD YEAR INSTEAD OF THE SECOND YEAR MR KELLNER SAID WB'S PLANS FOR A CABLEDISTRIBUTED PORTION OF THE NETWORK AS A WAY TO REACH PARTS OF THE COUNTRY WHERE THERE ISN'T A BROADCAST STATION AVAILABLE TO CARRY THE NETWORK WILL BE DELAYED TO THE THIRD YEAR WE'RE GOING TO END UP IN THE SAME PLACE WE'RE JUST GOING TO GET THERE OVER A LONGER PERIOD OF TIME MR KELLNER SAID HE BLAMED THE PROBLEMS ON RIVAL PARAMOUNT WHICH HE SAID WAS OFFERING STATIONS A GLORIFIED SYNDICATION EFFORT WHICH IS MUCH LESS EXPENSIVE TO DO IN THE PROCESS OF GATHERING AFFILIATES THE DEAL HAS BECOME MORE IMPORTANT THAN WHAT THE END RESULTS MIGHT BE AND SO WE'VE HAD TO ADJUST OURSELVES TO REFLECT THE COMPETITIVE MARKETPLACE SAID MR KELLNER WHO AS ONE OF THE FOUNDING EXECUTIVES OF NEWS CORP'S FOX NETWORK IS HIMSELF A KEY ELEMENT OF WARNER BROS'S PLAN MR KELLNER DESCRIBED HIS NEW PLAN AS CLOSER TO THE FOX MODEL FOR BUILDING A NETWORK WARNER BROS AND PARAMOUNT ARE IN A RACE TO BE THE FIRST TO SIGN UP STATIONS REACHING APPROXIMATELY 80 OF THE COUNTRY THE THRESHOLD THAT ADVERTISERS REQUIRE WITH MANY ANALYSTS INSISTING ONLY ONE GROUP CAN WIN SO FAR WB HAS SIGNED UP 41 OF THE COUNTRY INCLUDING ONE AS YETUNNAMED MAJORMARKET STATION WHILE PARAMOUNT HAS SIGNED UP STATIONS REACHING 33 OF THE COUNTRY PARAMOUNT HAS A SLOWER ROLLOUT PLAN THAT BEGINS IN JANUARY 1995 IF IMITATION IS THE SINCEREST FORM OF FLATTERY THEN WE SHOULD BE FLATTERED SAID PARAMOUNT TELEVISION GROUP CHAIRMAN KERRY MCCLUGGAGE OF THE WB CHANGES STATIONS THAT LINK UP WITH THE PARAMOUNTCHRIS CRAFT NETWORK DON'T HAVE TO PAY BECAUSE THOSE COMPANIES WILL MAKE A PROFIT FROM CARRYING THE PROGRAMS ON STATIONS THEY OWN WARNER BROS DOESN'T OWN ANY STATIONS 9311160088 931116 LAW SUPREME COURT DECLINES ABORTION CASE INVOLVING PARENTALNOTIFICATION LAW BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT DECLINED FOR NOW TO STEP BACK INTO THE FIGHT OVER STATE ABORTION RESTRICTIONS THE JUSTICES IN A BRIEF ORDER WITHOUT DISSENTS REFUSED TO HEAR A CHALLENGE TO MISSISSIPPI'S LAW REQUIRING GIRLS UNDER THE AGE OF 18 TO GET THE CONSENT OF BOTH PARENTS OR A JUDGE PRIOR TO AN ABORTION THE HIGH COURT'S ACTION DIDN'T INDICATE THE JUSTICES' VIEWS ON THE MERITS OF THE MISSISSIPPI LAW AND THE SUPREME COURT IS LIKELY IN A FUTURE CASE TO RETURN TO THE QUESTION OF HOW FAR STATES MAY GO IN LIMITING ABORTIONS IN OTHER ACTIONS YESTERDAY THE SUPREME COURT REJECTED AN APPEAL OF A LOWERCOURT RULING THAT HAD ALLOWED REGIONAL TELEPHONE COMPANIES TO OFFER INFORMATION SERVICES SUCH AS COMPUTERIZED YELLOW PAGES THE RULING GREW OUT OF A MODIFICATION OF THE ANTITRUST SETTLEMENT THAT BROKE UP THE BELL SYSTEM IN 1984 UNDER THE ORIGINAL SETTLEMENT THE REGIONAL PHONE COMPANIES WERE BANNED FROM PROVIDING INFORMATION SERVICES CONSUMER FEDERATION OF AMERICA VS US REFUSED TO DISTURB THE CONVICTIONS OF TWO WALL STREET PROFESSIONALS IN THE YUPPIE FIVE SECURITIESFRAUD CASE THE DEFENDANTS VICTOR TEICHER AN ARBITRAGER AND ROSS FRANKEL FORMER HEAD OF ARBITRAGE RESEARCH AT DREXEL BURNHAM LAMBERT INC WERE CONVICTED ON CHARGES RELATED TO THEIR TRADING IN 1986 ON INSIDE INFORMATION ABOUT CORPORATETAKEOVER PLANS THE DEFENDANTS GOT TIPS ON TAKEOVER ACTIVITY FROM A DREXEL ANALYST AND A LAWYER AT THE NEW YORK LAW FIRM OF PAUL WEISS RIFKIND WHARTON & GARRISON IN THEIR APPEAL TO THE SUPREME COURT THE DEFENDANTS ARGUED THAT PROSECUTORS HAD FAILED TO PROVE THAT THEY HAD BASED THEIR TRADING ON THE TAKEOVER TIPS TEICHER VS US LET STAND THE SECURITIESFRAUD CONVICTION OF A MAN WHO TRADED STOCK BASED ON ADVANCE COPIES OF BUSINESSWEEK MAGAZINE THE JUSTICES REJECTED THE APPEAL OF FRANCIS SABLONE WHO TRADED IN SECURITIES OF COMPANIES MENTIONED IN THE MAGAZINE'S STOCK MARKET COLUMN BEFORE EDITIONS WERE AVAILABLE ON NEWSSTANDS SABLONE VS US AGREED TO DECIDE WHETHER A PERSON CONVICTED OF A FELONY UNDER FEDERAL LAW MAY PURCHASE A GUN IF AFTER SERVING HIS SENTENCE HIS CIVIL RIGHTS ARE RESTORED UNDER STATE LAW LOWER FEDERAL COURTS HAVE SPLIT ON THE QUESTION OF WHETHER A STATE'S RESTORATION OF RIGHTS PROTECTS A PERSON FROM BEING PROSECUTED UNDER A FEDERAL LAW THAT PROHIBITS CONVICTED FELONS FROM POSSESSING GUNS BEECHAM VS US 9311160087 931116 CLINTON PICKS UP NEW SUPPORT FOR NAFTA BUT IS ASSAILED BY AFLCIO'S KIRKLAND BY MICHAEL K FRISBY AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE PICKED UP NEW SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT BUT IT CAME AT A HIGH COST A RUPTURE IN THE ADMINISTRATION'S RELATIONSHIP WITH ORGANIZED LABOR CLINTON ADMINISTRATION AIDES NOW SAY PRIVATELY THEY CAN GET THE VOTES OF JUST OVER 100 DEMOCRATS FOR NAFTA AND REPUBLICANS ARE EXPECTED TO PROVIDE BETWEEN 110 AND 120 POSSIBLY ENOUGH FOR MR CLINTON TO REACH THE 218 HE NEEDS FOR PASSAGE OF THE TRADE ACCORD IN THE HOUSE BUT AS THE WHITE HOUSE WAS TOUTING THE SUPPORT FROM AT LEAST EIGHT LAWMAKERS PREVIOUSLY COUNTED AS UNDECIDED AND ONE WHO WAS OPPOSED AFLCIO PRESIDENT LANE KIRKLAND ASSAILED PRESIDENT CLINTON FOR PROVIDING POLITICAL COVER TO REPUBLICANS LINING UP BEHIND NAFTA IN AN INTERVIEW WITH REPORTERS MR KIRKLAND SAID MR CLINTON HAS CLEARLY ABDICATED HIS ROLE AS LEADER OF THE DEMOCRATIC PARTY BY OFFERING TO HELP REPUBLICANS DEFEND THEMSELVES AGAINST DEMOCRATS WHO ATTACK THEIR PRONAFTA VOTES IN THE CONGRESSIONAL ELECTIONS NEXT YEAR MR KIRKLAND REITERATED THAT THE NAFTA VOTE WOULD BE CONSIDERED WHEN LOCAL UNIONS DECIDE WHO TO SUPPORT AND HE WAS PURPOSELY VAGUE WHEN DISCUSSING WHETHER MR CLINTON COULD COUNT ON LABOR'S SUPPORT IN 1996 HE SAID THE NEXT PRESIDENTIAL ELECTION IS A LONG TIME OFF AND THAT LABOR HAS HAD DISPUTES WITH OTHER PRESIDENTS AND SUPPORTED THEM BUT HE ADDED OUR MEMORY IS USUALLY PRETTY GOOD VICE PRESIDENT AL GORE YESTERDAY SAID NAFTA HAS GAINED THE SUPPORT OF NEARLY 40 CONGRESSMEN SINCE HIS DEBATE LAST WEEK WITH TEXAS BILLIONAIRE ROSS PEROT THE UNDECIDED VOTES STILL HOLD THE BALANCE OF POWER MR GORE SAID BUT THEIR NUMBER IS GETTING SMALLER AND WE HOLD THE MOMENTUM I THINK THAT BOTH SIDES AGREE THAT WE HOLD THE MOMENTUM IN A BRIEF TALK WITH COLUMNISTS AT THE WHITE HOUSE MR CLINTON AGAIN PREDICTED VICTORY THOUGH HE ACKNOWLEDGED THAT IT WOULD BE AN EXCEEDINGLY NARROW ONE IT'S GOING TO BE ANOTHER LANDSLIDE IN PARADISE HE JOKED MR CLINTON ALSO SAID THAT AT LEAST TWO DEMOCRATS AND TWO REPUBLICANS THAT OPPONENTS ARE COUNTING AS BEING IN THEIR CAMP WILL CROSS OVER AND VOTE FOR THE PACT BUT HE DECLINED TO IDENTIFY THEM ONE OF THEM COULD BE REP BART GORDON D TENN AFTER DISCUSSIONS WITH VICE PRESIDENT GORE MR GORDON HAS MOVED FROM OPPOSITION TO THE OFFICIALLY UNDECIDED LIST BUT HE IS NOW EXPECTED BY BOTH OPPONENTS AND PROPONENTS TO VOTE YES BUT THE WHITE HOUSE CAUTIONS THAT VOTE COUNTS ARE TRICKY AT LEAST FIVE MEMBERS HAVE SAID THEY WILL VOTE WITH THE PRESIDENT IF HE NEEDS THEIR VOTES WHILE ANOTHER FIVE SAY THAT THEY WOULD LIKE TO BE RELEASED FROM PLEDGES TO VOTE FOR NAFTA IF THEIR VOTES AREN'T NEEDED AND THE WHITE HOUSE CONSIDERED IT A BLOW WHEN REP ROBERT TORRICELLI A NEW JERSEY DEMOCRAT WHO HEADS A FOREIGN AFFAIRS SUBCOMMITTEE THAT DEALS WITH LATIN AMERICA ANNOUNCED THAT HE WOULD OPPOSE NAFTA BUT AIDES SAID MR TORRICELLI WAS THE ONLY RECENT PICKUP BY THEIR OPPONENTS THAT THE WHITE HOUSE THOUGHT IT HAD A CHANCE OF SNAGGING HOUSE MAJORITY LEADER RICHARD GEPHARDT AN OPPONENT OF NAFTA ACKNOWLEDGED THAT THE VOTE WAS TOO CLOSE TO CALL THERE ARE MORE NO VOTES THAN YES VOTES RIGHT NOW THE MISSOURI DEMOCRAT SAID BUT THERE ARE ENOUGH VOTES UP IN THE AIR THAT IT CAN GO EITHER WAY MEANWHILE THE ADMINISTRATION CONTINUES TO CUT THE KIND OF DEALS THAT HAVE PUT NAFTA ON THE VERGE OF PASSAGE TODAY THE WHITE HOUSE IS EXPECTED TO ANNOUNCE A PLAN TO CURRY FAVOR AMONG WHEATSTATE LAWMAKERS BY THREATENING TO TAKE ACTION AGAINST IMPORTS OF DURUM WHEAT FROM CANADA IN HIS FINAL PUSH FOR NAFTA MR CLINTON HAS TAPED AN INTERVIEW FOR ABC'S EVENING NEWS PROGRAM AND PLANS TO SEND EVERY MEMBER OF CONGRESS A LETTER FROM ALL THE LIVING FORMER PRESIDENTS CALLING ON THEM TO VOTE FOR THE AGREEMENT MR KIRKLAND'S COMMENTS MARKED AN UNUSUAL STRAIN IN THE RELATIONSHIP BETWEEN A DEMOCRATIC PRESIDENT AND ONE OF THE PARTY'S MOST POWERFUL CONSTITUENCY GROUPS A SPLIT THAT COULD HURT MR CLINTON DOWN THE ROAD IF ORGANIZED LABOR WERE TO TURN AGAINST HIM BITTER UNION CHIEF MR KIRKLAND SAID THAT THE ANTINAFTA SIDE WOULD LIKELY PREVAIL IN TOMORROW'S SHOWDOWN VOTE BUT HIS MOOD AND HIS WORDS PORTRAYED A BITTER UNION CHIEF WHO MAY BE FACING DEFEAT AND IS BESIDE HIMSELF BECAUSE IT WOULD BE AT THE HANDS OF A DEMOCRAT WHOM LABOR HELPED ELECT LAST YEAR SPEAKING OF THE PRESIDENT MR KIRKLAND SAID THE FACT THAT HE HAS INDICATED HE WILL IN EFFECT GIVE CAMPAIGN HELP TO THE OPPOSITION PARTY AND THE FACT THAT HIS POSITION IS CONTRARY TO THAT OF THE MAJORITY OF THE MEMBERS OF HIS OWN PARTY IN CONGRESS SUGGESTS THAT HE IS NOT ACTING IN THAT CAPACITY OF PARTY LEADER WHICH IS TRADITIONALLY ONE OF THE MAJOR ROLES OF THE PRESIDENT THE WHITE HOUSE ACKNOWLEDGED THAT THE PRESIDENT IS EXPECTED TO SEND A LETTER TO THE REPUBLICAN LEADERSHIP DECLARING THAT NAFTA SHOULD NOT BE AN ISSUE IN THE 1994 CAMPAIGN REPORTS OF THE LETTER ARE WHAT SET OFF MR KIRKLAND'S OUTBURST HOWEVER MR KIRKLAND'S BITTERNESS MAY ALSO BE A RESULT OF THE MOMENTUM THAT THE WHITE HOUSE IS PICKING UP FOR THE ATTEMPT TO CREATE A FREETRADE ZONE BETWEEN THE US MEXICO AND CANADA ONE THAT THE UNIONS CLAIM WILL LEAD AMERICAN COMPANIES AND JOBS TO FLEE TO MEXICO YESTERDAY MR CLINTON GAINED SUPPORT FROM ANOTHER GROUP OF CONGRESSMEN WHO IN MOST COUNTS WERE UNDECIDED REPUBLICANS LARRY COMBEST OF TEXAS MARGE ROUKEMA OF NEW JERSEY AND HAMILTON FISH OF NEW YORK AND DEMOCRATS MARTIN MEEHAN AND EDWARD MARKEY OF MASSACHUSETTS MARTIN FROST OF TEXAS IKE SKELTON OF MISSOURI AND NORMAN MINETA OF CALIFORNIA UNDER THE DEAL ON CANADIAN WHEAT THE US WOULD ASK CANADA TO NEGOTIATE FOR A LIMITED PERIOD OF TIME 60 DAYS OR SO TO REDUCE TRANSPORTATION SUBSIDIES TO CANADIAN WHEAT FARMERS AND TO BETTER EXPLAIN ITS WHEATPRICING DECISIONS IF THOSE NEGOTIATIONS DON'T PROVE FRUITFUL THE US WOULD PRESS A COMPLAINT AT THE US INTERNATIONAL TRADE COMMISSION TO IMPOSE QUOTAS ON DURUM WHEAT EXPORTS IN ADDITION WINE INDUSTRY OFFICIALS SAID THAT THE ADMINISTRATION IN AN EFFORT TO WIN OVER LAWMAKERS FROM THE CALIFORNIA WINE COUNTRY PLEDGED THAT MEXICO WOULD QUICKLY AGREE TO LOWER ITS WINE TARIFFS 9311160086 931116 INTERNATIONAL PUSH COMES TO SHOVE FOR MEXICO VENDORS UNEMPLOYED PEDDLERS MOVE IN ON BLIND SELLERS' TURF BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FOR MORE THAN 20 YEARS EVER SINCE HE WAS BLINDED IN A FACTORY ACCIDENT CANDY VENDOR BRASILIANO PACHECO HAD BEEN NEARLY AS MUCH OF A FIXTURE ON DOWNTOWN STREETS AS THE BRONZED STATUES OF REVOLUTIONARY GENERALS THEN ONE DAY LAST SUMMER AS MR PACHECO WAS STROLLING ALONG WITH HIS TRAY OF SWEETS HE BUMPED SMACK INTO A STEEL WALL THIS WAS THE BLIND MAN'S INTRODUCTION TO HIS NEW CANDYSELLING COMPETITION A BOXLIKE STAND ERECTED BY TWO MEN WHO HAD THE ADVANTAGE OF BEING ABLE TO SEE THEIR WARES THE INTRUDERS WERE VENDEDORES AMBULANTES OR MOVING VENDORS ABLEBODIED BUT UNEMPLOYED MEXICANS WHO RESORT TO STREET PEDDLING TO EARN A LIVING WHEN MR PACHECO ASKED THE AMBULANTES TO MOVE OFF OF HIS TURF THEY SHOVED HIM WHEN HE SWUNG AT THEM WITH HIS CANE THEY SOCKED HIM IN THE JAW THEY SAID THAT THERE WAS TOO MUCH MONEY IN STREET VENDING TO LEAVE IT TO THE BLIND SAYS MR PACHECO IN A COUNTRY WITH A CHRONIC UNEMPLOYMENT PROBLEM STREET VENDING HAS BECOME A JOB THAT SOME PEOPLE ARE WILLING TO BEAT UP A BLIND MAN FOR THE NATIONAL ASSOCIATION OF BLIND VENDORS WHICH IS MADE UP OF SIGHTLESS PEOPLE WHO RUN FIXED SIDEWALK STANDS OR WORK AS ROVING PEDDLERS SAYS HALF OF THE CAPITAL'S 2000 OR SO BLIND VENDORS HAVE LOST THEIR SITES TO STREETFIGHTING AMBULANTES NEAR THE NATIONAL PALACE AMBULANTES WIELDED CLUBS TO ELIMINATE STANDS WHERE BLIND MERCHANTS AND THEIR NONDISABLED HELPERS SOLD CLOTHING ALONG WIDE AVENIDA UNIVERSIDAD THE AMBULANTES USED TOW TRUCKS TO REMOVE THE TRAILERS FROM WHICH BLIND MEN SOLD TACOS IT IS WAR ON THE STREETS SAYS ALBERTO ROBLES A SIGHTLESS MERCHANT WHO WAS STILL INSIDE HIS TRAILER WHEN THE AMBULANTES BEGAN HAULING IT AWAY AND WE ARE OUTNUMBERED MEXICO'S AMBULANTE ARMIES EMERGED DURING THE ECONOMIC CRISIS OF THE PAST DECADE WHEN 10 MILLION MEXICANS ENTERED THE LABOR FORCE BUT ONLY FOUR MILLION NEW JOBS WERE CREATED OUTOFWORK MEXICANS RESPONDED BY TAKING TO THE STREETS NOT TO PROTEST BUT TO PEDDLE AN ARRAY OF PRODUCTS RANGING FROM FRENCH PERFUME TO REFRIGERATORS A RECENT MEXICO CITY CHAMBER OF COMMERCE CENSUS PUT THE NUMBER OF SIDEWALK STANDS HERE AT 146000 NEARLY EQUAL TO THE NUMBER OF INDOOR SHOPS AND MARKETS IN ONLY A FEW YEARS AN AMBULANTE LEADER NAMED GUILLERMINA RICO ACHIEVED CONTROL OVER 44 STREETS AND 7000 VENDING POSTS MRS RICO SAYS SHE'S MERELY FIGHTING TO UPLIFT THE DOWNTRODDEN WE ARE HUMBLE PEOPLE WORKING TO FEED OUR FAMILIES SHE SAYS YES THEY ARE FEEDING THEIR FAMILIES RETORTS DELFINO ZAMUDIO PRESIDENT OF THE BLIND VENDORS' ASSOCIATION BY EATING US ALIVE HE SAYS THAT SOME OF MRS RICO'S HELPERS ONCE HOISTED HIM BY THE LAPELS AND DROPPED HIM IN A TRASH BARREL SEEKING TO RESTORE SOME SEMBLANCE OF ORDER TO PUBLIC ARTERIES THE MEXICAN GOVERNMENT RECENTLY STARTED A PROGRAM TO RELOCATE BOTH THE SIGHTLESS STREET MERCHANTS AND THE AMBULANTES INSIDE DOZENS OF ENCLOSED MARKETS THE HOPE IS THAT THE RELOCATION PROGRAM COUPLED WITH THE CREATION OF JOBS ANTICIPATED FROM THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT WILL CONTROL STREET VENDING THE BLIND VENDORS ARE SKEPTICAL THAT THERE'S ANY WAY OF GETTING THEIR ABLEBODIED COMPETITORS OFF THE STREETS MARCO ANTONIO LARIOS HAS BEEN RUNNING STREET STANDS EVER SINCE HE LOST HIS SIGHT IN A CONSTRUCTION ACCIDENT 30 YEARS AGO BACK THEN THE MEXICAN GOVERNMENT GAVE THE BLIND VENDORS' ASSOCIATION EXCLUSIVE RIGHTS TO WORK ON MANY OF THE CAPITAL'S MAIN THOROUGHFARES THE VENDORS FACED LITTLE COMPETITION FROM NONDISABLED MEXICANS WHO HAD THEIR PICK OF JOBS IN THE BOOMING ECONOMY OF THAT ERA MR LARIOS DID WELL ENOUGH WITH A HANDFUL OF SIDEWALK STANDS TO RAISE 10 CHILDREN THEN CAME MEXICO'S FOREIGNDEBT CRISIS OF THE 1980S WHEN THE ECONOMY CRASHED SAYS MR LARIOS THE BLIND MEN LOST THEIR MONOPOLY ON STREET VENDING ONE AFTERNOON MR LARIOS VISITS A DOWNTOWN MARKET THAT THE AMBULANTES HAVE RECENTLY WRESTED FROM THE BLIND VENDORS AS HE FEELS HIS WAY THROUGH THE TEEMING BAZAAR MR LARIOS RAGES AT THE AMBULANTES THIS IS MY TERRITORY HE SAYS THUMPING THE FRAME OF AN INTRUDER'S STAND WITH HIS CANE THE AMBULANTE WHO'D BEEN TRYING TO SELL A TSHIRT TO A CUSTOMER SNAPS ANGRILY AT MR LARIOS LOOK WHAT YOU'RE DOING YOU DONKEY BUT WHEN HE SEES MR LARIOS'S DARK GLASSES AND CANE HE HANGS HIS HEAD ASHAMED WHEN MR LARIOS WANDERS OFF THE VENDOR MARCO ROMO EXPLAINS THAT HE WAS FORCED TO WORK IN THIS STREET STAND AFTER LOSING HIS JOB AS A GOVERNMENT CLERK I HAVE A WIFE AND FOUR CHILDREN AND IT IS MY DUTY TO CRUSH ANY MAN WHO THREATENS THEIR WELLBEING HE SAYS EVEN A BLIND MAN THE CITY OFFICIAL WHO MUST MEDIATE THESE TURF BATTLES IS A BELEAGUERED MAN NAMED ROBERTO ALBORES GUILLEN HE USES A RECONNAISSANCE AIRPLANE TO TRACK THE AMBULANTES' MOVEMENTS BUT HE CONCEDES THERE'S STILL NO KEEPING UP WITH THEM MR ALBORES'S PLAN IS TO CLEAR THE CAPITAL OF STREET VENDORS BOTH SEEING AND UNSEEING ONE NEIGHBORHOOD AT A TIME HE IS BEGINNING IN THE HISTORIC CENTER A MAZE OF NARROW COBBLED STREETS WHERE ABOUT 10000 AMBULANTES AND A FEW HUNDRED BLIND VENDORS HAVE INSTALLED THEMSELVES UNDER THE GOVERNMENT PROGRAM BOTH AMBULANTES AND THE BLIND MERCHANTS WILL BE FORCED TO MOVE OFF THE STREETS AND INTO CUBICLES AT 29 INDOOR MARKETS THAT ARE IN VARIOUS STAGES OF CONSTRUCTION WHEN THE FIRST INDOOR MARKET BUILT FOR AMBULANTES OPENED LAST MONTH SCORES OF POLICE WERE BROUGHT IN TO FORCE THE VENDORS TO OCCUPY IT BRIDLING AT PAYING THE RENT THE GOVERNMENT IS CHARGING THEM FOR THE CRAMPED MARKET CUBICLES SOME AMBULANTES ARE MOVING ONTO STREETS OUTSIDE OF THE HISTORIC CENTER EVEN AT THE INSIDE MARKETS THE BLIND VENDORS AND THE AMBULANTES APPEAR POISED TO CLASH WHEN MR LARIOS VISITED A SOONTOBEOPENED MARKET WHERE MANY SIGHTLESS VENDORS WILL BE RELOCATED HE MET AN AMBULANTE LEADER WHO MAY BE ASSIGNED THERE TOO SHE WARNED ME THAT IF THE BLIND VENDORS TRY TO TAKE THE BEST POSTS IN THE MARKET THE AMBULANTES WILL MOVE IN AND CLOBBER US MR LARIOS SAYS 9311160085 931116 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AUTHENTIC FITNESS CORP AN OFFERING OF TWO MILLION COMMON SHARES VIA SMITH BARNEY SHEARSON INC CENTRAL HISPANO CAPITAL LTD A SHELF OFFERING OF UP TO 20 MILLION NONCUMULATIVE PREFERENCE SHARES 25 PAR VALUE AT A MAXIMUM OF 500 MILLION FEDERAL REALTY INVESTMENT TRUST A SHELF OFFERING FOR UP TO 300 MILLION OF DEBT SECURITIES PREFERRED STOCK AND COMMON STOCK GS FINANCIAL PRODUCTS US LP A UNIT OF THE GOLDMAN SACHS GROUP LP A SHELF OFFERING FOR UP TO 500 MILLLION OF MEDIUMTERM NOTES VIA GOLDMAN SACHS & CO INDIANA BELL TELEPHONE CO A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO A SHELF OFFERING FOR UP TO 225 MILLION OF DEBT SECURITIES MARRIOTT INTERNATIONAL INC AN OFFERING OF UP TO 150 MILLION OF 10YEAR FIXEDRATE SENIOR NOTES VIA LEHMAN BROTHERS DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND SMITH BARNEY SHEARSON INC UNITED INTERNATIONAL HOLDINGS INC AN OFFERING OF THREE MILLION COMMON SHARES VIA SMITH BARNEY SHEARSON INC 9311160084 931116 ENTERPRISE SMALL FIRMS FIND A STRATEGY FOR WORKERS' COMPENSATION SELFINSURANCE POOLS OFFER A WAY AROUND SHARPLY RISING INSURANCE FEES BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL RALPH SMITH THOUGHT HE WAS GETTING A RAW DEAL HIS 300EMPLOYEE COMPANY LE MASON CO HAD A GOOD TRACK RECORD FOR WORKER SAFETY BUT THE RATE MASON PAID FOR WORKERS' COMPENSATION INSURANCE WAS ONLY SLIGHTLY LOWER THAN THAT PAID BY COMPETITORS WITH POOR RECORDS THAT CHANGED IN 1991 WHEN MASON A BOSTON MAKER OF LIGHTING FIXTURES AND OTHER CONSTRUCTION MATERIALS JOINED A SELFINSURANCE GROUP NOW MASON'S RATES ARE 40 BELOW THE ALTERNATIVES AND FAR LOWER THAN RATES PAID BY RIVALS WITH BAD SAFETY RECORDS WE'RE PLEASED SAYS MR SMITH VICE PRESIDENT OF MASON IT HAS BEEN VERY POSITIVE FOR US MASON BELONGS TO THE GROWING NUMBER OF SMALL BUSINESSES NOW TURNING TO SELFINSURANCE GROUPS AS A WAY TO SAVE MONEY ON WORKERS' COMPENSATION COVERAGE THE COST OF THIS COVERAGE WHICH APPLIES TO WORKRELATED INJURIES AND ILLNESSES HAS BEEN RISING SHARPLY SELFINSURANCE GROUPS OR FUNDS TYPICALLY OFFER CHEAPER RATES THAN STATE WORKERS' COMPENSATION POOLS OFTEN THE ONLY OTHER PLACE WHERE A SMALL BUSINESS CAN FIND COVERAGE UNLICENSED FUNDS ALSO ARE SPRINGING UP HOWEVER THEY PREY ON SMALL BUSINESSES DESPERATE TO SAVE MONEY ON THEIR WORKERS' COMPENSATION INSURANCE SELFINSURANCE FUNDS ARE NOT FOR EVERYONE BUT THEY CAN BE EFFECTIVE IN HELPING SMALLER EMPLOYERS MANAGE THEIR WORKERS' COMPENSATION RISKS SAYS JOHN HERZFELD A CONSULTANT IN BOSTON WITH MILLIMAN & ROBERTSON AN ACTUARIAL CONSULTING FIRM ABOUT 35 STATES ALLOW SUCH FUNDS UP FROM 20 IN 1986 ALTHOUGH FLORIDA PERMITTED THEM AS EARLY AS 15 YEARS AGO CALIFORNIA AND PENNSYLVANIA PASSED THE NECESSARY LEGISLATION MORE RECENTLY NEW JERSEY IS CONSIDERING PERMITTING FUNDS THE GROWING POPULARITY OF SELFINSURANCE FUNDS ILLUSTRATES THE STRAINS IN THE 40 BILLIONAYEAR WORKERS' COMPENSATION SYSTEM STATES REQUIRE THAT BUSINESSES PROVIDE EMPLOYEES WITH WORKERS' COMPENSATION COVERAGE BUT INSURANCE COMPANIES SAY THEY HAVE ABANDONED LARGE PORTIONS OF THE MARKET BECAUSE STATES WON'T ALLOW THEM TO RAISE RATES ENOUGH TO KEEP UP WITH SOARING COSTS STATES HAVE TRIED TO FILL THE VOID BY ESTABLISHING WORKERS' COMPENSATION POOLS BIG BUSINESSES HAVE DISCOVERED THEY CAN SAVE MONEY BY INSURING THEMSELVES NOW SMALL BUSINESSES ARE TRYING TO GET THE SAME ADVANTAGES BY CREATING SELFINSURANCE FUNDS THE CONCEPT IS SIMPLE A FUND'S MEMBER COMPANIES OFTEN COMING FROM THE SAME INDUSTRY BAND TOGETHER AND HIRE AN ADMINISTRATOR THE ADMINISTRATOR CONTRACTS WITH ACTUARIES INVESTMENT MANAGERS LOSSPREVENTION SPECIALISTS HEALTHCARE PROVIDERS AND ANYONE ELSE NECESSARY TO PERFORM THE FUNCTIONS OF AN INSURANCE COMPANY FUND MEMBERS SHARE EACH OTHERS' RISKS PAYING LOSSES OUT OF PREMIUMS AND INVESTMENT RETURNS MEMBERS CAN BE ASSESSED ADDITIONAL PREMIUMS IF CLAIMS GROW LARGE BUT REALLY LARGE CLAIMS WON'T BURY THE FUND OR ITS MEMBERS BECAUSE THE FUND BUYS REINSURANCE TO COVER POSSIBLE CATASTROPHIC LOSSES A TYPICAL FUND MEMBER HAS BETWEEN 60 AND 100 EMPLOYEES AND PAYS BETWEEN 50000 AND 100000 A YEAR FOR COVERAGE ACCORDING TO JOHN DIEM A VICE PRESIDENT WITH TRAVELERS CORP TRAVELERS IS A MAJOR SUPPLIER OF INSURANCE SERVICES TO FUNDS BUT LOWER COSTS FOR SMALL BUSINESSES IN SELFINSURED FUNDS MEAN HIGHER COSTS FOR THOSE IN STATE WORKERS' COMPENSATION POOLS AS GOOD RISKS FLEE THE STATE POOLS THE RATES FOR THOSE WHO STAY INCREASE THAT ONLY INCREASES THE INCENTIVE TO SELFINSURE SAYS ECONOMIST SEAN MOONEY OF THE INSURANCE INFORMATION INSTITUTE BESIDES LOWER COSTS THE BIGGEST ADVANTAGE OF SELFINSURANCE FUNDS IS THEIR FLEXIBILITY IF YOU DON'T LIKE THE WAY SOMEONE IS HANDLING CLAIMS YOU CAN GET SOMEONE ELSE MR HERZFELD SAYS MASON THE CONSTRUCTIONMATERIALS MANUFACTURER BELONGS TO THE MASSACHUSETTS MANUFACTURING SELF INSURANCE GROUP THE TWOYEAROLD GROUP HAS 156 MEMBERS RANGING IN SIZE FROM 15 TO 515 EMPLOYEES BELONGING TO A FUND REQUIRES CONSIDERABLE COMMITMENT SAYS MICHAEL FOLLICK PRESIDENT OF ABACUS MANAGEMENT GROUP INC A CRANSTON RI CONCERN THAT MANAGES A FUND FOR 160 JEWELRY MAKERS IN THAT STATE JUST PUTTING A FUND TOGETHER IS NOT A MAGIC BULLET AGREES MILLIMAN & ROBERTSON'S MR HERZFELD YOU HAVE GOT TO DO YOUR BASICS WELL INSTEAD OF PAYING A PREMIUM AND LETTING AN INSURANCE COMPANY DO THE REST A FUND MEMBER MUST AGREE TO FOLLOW A SERIES OF STEPS DESIGNED TO LOWER LOSSES STEPS INCLUDE ROUTINELY MONITORING WORKPLACE SAFETY GETTING TRAINED IN HOW TO REDUCE LOSSES AND AGREEING TO MAINTAIN A DIALOGUE WITH WORKERS IDLED BY DISABILITY LEAVE ACTIVELY SHOWING CONCERN FOR INJURED WORKERS HELPS TO REDUCE LEGAL CLAIMS BUT THE DISCIPLINE OF BELONGING TO A SELFINSURANCE FUND IS TOO GREAT FOR SOME SMALL BUSINESSES PARTICULARLY THOSE WITH ONLY A HANDFUL OF EMPLOYEES INDEED THE RHODE ISLAND JEWELRY FUND HAS BEEN FORCED TO EXPEL SOME MEMBER COMPANIES THAT DIDN'T FOLLOW THE RULES ONE COMPANY DIDN'T REPORT INJURIES ON TIME AND ANOTHER FAILED TO MAKE ITS WORKPLACE SAFER 9311160083 931116 CATERPILLAR SAYS IT LIKELY CAN SUSTAIN' OUTPUT IF UAW STAGES ANOTHER STRIKE BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CATERPILLAR INC'S CHAIRMAN SAID THE COMPANY BELIEVES IT CAN SUSTAIN PRODUCTION EVEN IF THE UNITED AUTO WORKERS UNION STAGES ANOTHER STRIKE AGAINST THE CONSTRUCTIONEQUIPMENT MAKER THE CHAIRMAN DONALD FITES SAID CATERPILLAR CONTINUED SOME PRODUCTION DURING THE THREEDAY STRIKE THAT ENDED SUNDAY NIGHT USING NEARLY 2000 UAW MEMBERS WHO THE COMPANY SAYS IGNORED PICKET LINES PLUS SALARIED AND MANAGEMENT WORKERS MR FITES SAID HE BELIEVES MANY OF THE STRIKERS WOULD HAVE RETURNED TO WORK YESTERDAY HAD THE UNION NOT CALLED OFF THE WALKOUT HIS REMARKS ABOUT THE ABILITY TO SUSTAIN PRODUCTION CAME AFTER HE SAID HE SEES NO NEED TO BUILD INVENTORY AS A HEDGE AGAINST ANOTHER STRIKE THE COMMENTS MADE AT A MEETING OF SECURITIES ANALYSTS HERE INDICATE THAT THE COMPANY HASN'T SOFTENED ITS STANCE IN THE TWOYEAR CONTRACT DISPUTE WITH THE UAW MR FITES REITERATED THAT CATERPILLAR WON'T SIGN A SOCALLED PATTERN AGREEMENT ONE MODELED AFTER THE UNION'S CONTRACTS WITH THE BIG THREE AUTO MAKERS IN DETROIT AT THE SAME TIME MR FITES SAID IN A BRIEF INTERVIEW AFTER HIS TALK THAT THE COMPANY IS WILLING TO BARGAIN ON ALL ISSUES CATERPILLAR AND THE UAW HAVEN'T MET AT THE NEGOTIATING TABLE SINCE JUNE 1992 THE UNION CALLED OFF ITS STRIKE IN APRIL 1992 AFTER IT LASTED MORE THAN FIVE MONTHS AND AFTER CATERPILLAR THREATENED TO REPLACE SOME 12600 STRIKERS MR FITES REPEATED THAT THE COMPANY WON'T WITHDRAW THE FINAL OFFER THAT IT IMPLEMENTED AFTER THE STRIKERS RETURNED TO WORK IN 1992 THE UAW HAS SAID IT TOO IS READY TO DISCUSS ALL ISSUES BUT INSISTS THAT THE COMPANY WITHDRAW THE FINAL OFFER THE UNION ALSO CONTENDS THAT THE THREEDAY STRIKE AT CATERPILLAR PLANTS IN ILLINOIS AND YORK PA STOPPED PRODUCTION A COMPANY SPOKESMAN SAID ABOUT 11000 UAW MEMBERS WERE ON STRIKE AT ITS FACTORIES BUT THE UNION CONTENDS THE NUMBER IS HIGHER THEY SEEM TO SAY WHAT THE MARKET WANTS TO HEAR SAID A UAW SPOKESMAN OF THE COMPANY'S STATEMENTS THAT PRODUCTION CONTINUED INDUSTRY ANALYSTS SAY THE SIMMERING DISPUTE WITH THE UAW IS ONE OF THE FEW ISSUES CLOUDING AN OTHERWISE BRIGHT OUTLOOK FOR CATERPILLAR RICHARD ROSSI OF DEAN WITTER REYNOLDS SAID THAT EVEN THOUGH THE LATEST STRIKE IS OVER HE WOULDN'T BE SURPRISED TO SEE SIMILAR ACTIONS AND DISRUPTIONS FROM THE UAW IN THE FUTURE MR FITES'S REMARKS CAME IN AN OTHERWISE UPBEAT PRESENTATION IN WHICH HE SAID CATERPILLAR'S MARKET SHARE IS AT AN ALLTIME HIGH AND THAT THE COMPANY WILL CONTINUE TO FOCUS ON BECOMING MORE EFFICIENT WITH THE END THIS YEAR OF A 185 BILLION FACTORYMODERNIZATION PROGRAM HE SAID CAPITAL SPENDING WILL BE REDUCED AND CASH FLOW USED TO CUT THE COMPANY'S 28 BILLION IN DEBT CATERPILLAR STOCK ROSE 625 CENTS OR 07 TO CLOSE AT 89875 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9311160082 931116 YOUR MONEY MATTERS YEAREND FINANCIAL PLANNING IN MAPPING YOUR TAX STRATEGY DON'T PROCRASTINATE TOO LONG BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL YEAREND TAX PLANNING CAN BE A GREAT IDEA IF YOU DON'T LEAVE IT UNTIL THE END OF THE YEAR WITH ABOUT SEVEN WEEKS LEFT UNTIL NEW YEAR'S DAY THERE'S STILL TIME TO REVIEW YOUR TAX SITUATION AND CONSIDER A FEW STEPS THAT COULD EASE THE PAIN NEXT APRIL THERE ARE NUMEROUS TAXSAVING OPPORTUNITIES FOR PEOPLE WHO ACT BEFORE THE BELL TOLLS SAYS SIDNEY KESS A NEW YORK LAWYER AND ACCOUNTANT GETTING STARTED EARLY COULD BE ESPECIALLY IMPORTANT THIS YEAR BECAUSE OF THE 1993 TAX ACT BUT BEWARE OF GENERALIZATIONS AMERICA'S CRAZY PATCHWORK QUILT OF TAX LAWS HAS GROWN SO COMPLEX THAT SOME ADVICE THAT COULD CUT YOUR NEIGHBOR'S TAX BILL COULD INCREASE YOURS WHATEVER THE CASE NEVER TAKE ANY ACTION SOLELY FOR TAX PURPOSES WARNS ROBERT J GARNER A PARTNER AT ERNST & YOUNG AND NATIONAL DIRECTOR OF PERSONAL FINANCIAL COUNSELING THAT CAN BE AN INVITATION TO FINANCIAL DISASTER WITH THOSE CAVEATS IN MIND HERE ARE SOME YEAREND TAX TIPS ACCOUNTANTS AND LAWYERS ARE GIVING CLIENTS THESE DAYS ONE OF THE THORNIEST QUESTIONS THIS YEAR IS HOW TO TIME INCOME AND DEDUCTIONS TO PAY THE LEAST POSSIBLE TAX FOR MANY YEARS THE CLASSIC ADVICE HAS BEEN TO DEFER INCOME WHENEVER POSSIBLE AND TO ACCELERATE DEDUCTIONS AROUND YEAR END THAT ADVICE STILL IS RIGHT FOR MOST PEOPLE SAYS CLINT STRETCH DIRECTOR OF LEGISLATIVE AFFAIRS AT DELOITTE & TOUCHE IN WASHINGTON AFTER ALL THERE'S NO WAY TO AVOID THE FACT THAT THE NEW TAX LAW'S HIGHER 36 AND 396 RATES ARE RETROACTIVE TO LAST JAN 1 BUT THIS YEAR THERE MAY BE SOME VERY IMPORTANT EXCEPTIONS TO THE GENERAL RULE MAINLY BECAUSE OTHER KEY PROVISIONS OF THE TAX LAW WON'T HIT TAXPAYERS UNTIL NEXT YEAR FOR EXAMPLE BEGINNING IN 1994 THE LAW ELIMINATES A CAP ON EARNINGS SUBJECT TO MEDICARE TAXES THE NEW LAW ALSO ALLOWS UPPERINCOME PEOPLE FACING HIGHER 1993 TAXES BECAUSE OF THE NEW HIGHER RATES TO SPREAD OUT PAYMENT OF THAT ADDITIONAL TAX IN THREE ANNUAL INSTALLMENTS THROUGH 1996 AS A RESULT SOME UPPERINCOME PEOPLE ESPECIALLY SELFEMPLOYED WORKERS MAY WANT TO ACCELERATE INCOME SUCH AS CONSULTING FEES OR BONUSES INTO THIS YEAR SAYS RICK J TAYLOR OF KPMG PEAT MARWICK MAYBE YOU ANTICIPATE BEING IN A HIGHER INCOMETAX BRACKET NEXT YEAR IN THAT CASE IT MIGHT MAKE SENSE TO ACCELERATE INCOME INTO THIS YEAR WHEN IT WILL BE TAXED AT A LOWER RATE AND DEFER DEDUCTIONS UNTIL NEXT YEAR WHEN THEY WILL BE WORTH MORE BUT NEVER MAKE THIS DECISION WITHOUT CRUNCHING THE NUMBERS ADVISERS SAY ANYONE THINKING OF ACCELERATING SUCH INCOME AS A BONUS OR CONSULTING FEE NEEDS TO CALCULATE THE COST OF PAYING TAXES EARLY AND TO MAKE SURE THEY EXPLORE OTHER POSSIBLE CONSEQUENCES SUCH AS THOSE INVOLVING ESTIMATEDTAX PAYMENTS OR THE ALTERNATIVE MINIMUM TAX OR AMT THE AMT IS A COMPLEX MEASURE DESIGNED TO MAKE SURE EVERYONE PAYS AT LEAST SOME TAX TAXPAYERS ALSO NEED TO ASK THEMSELVES IF THE TAX SAVINGS REALLY ARE WORTH THE TIME OR THE ADDITIONAL HIGHPRICED ACCOUNTING HELP THEY WILL NEED TO FIGURE OUT THE ANSWER UNLESS THE AMOUNT IS LARGE ACCOUNTANTS SAY FORGET IT ONE EASY WAY TO CUT TAXES IS TO OFFSET CAPITAL GAINS WITH CAPITAL LOSSES FOR EXAMPLE SUPPOSE SOMEONE ALREADY HAS 10000 OF CAPITAL GAINS IN STOCKS AND BONDS IF THAT PERSON OWNS OTHER ISSUES THAT ARE WORTH LESS THAN THEIR PURCHASE PRICE AND IF THE INVESTOR WAS THINKING OF SELLING THOSE LOSERS ANYWAY THIS COULD BE A GOOD TIME TO PULL THE TRIGGER BUT BE CAREFUL ABOUT UNLOADING TAXFREE MUNICIPAL BONDS BOND DEALERS OFTEN CHARGE HIGH MARKUPS ON SMALL BLOCKS OF MUNICIPAL BONDS IN SECONDARY OR RESALE MARKETS AND TAX LAWS GOVERNING SALES OF TAXFREE BONDS CAN BE UNBELIEVABLY COMPLEX SAYS JOHN G TAFT PRESIDENT OF THE VOYAGEUR FUNDS IN MINNEAPOLIS INVESTORS CAN ALSO DEDUCT AS MUCH AS 3000 OF CAPITAL LOSSES EACH YEAR AGAINST ORDINARY INCOME SAYS CAROL CARUTHERS A PARTNER AT PRICE WATERHOUSE IN ST LOUIS IF AN INVESTOR'S LOSSES EXCEED GAINS BY MORE THAN 3000 IN ONE YEAR THOSE LOSSES MAY BE CARRIED OVER INTO THE FUTURE SHE ADDS ONE POPULAR YEAREND STRATEGY IS KNOWN AS SELLING SHORT AGAINST THE BOX THIS INVOLVES SELLING BORROWED SECURITIES A MANEUVER KNOWN AS A SHORT SALE WHILE OWNING SUBSTANTIALLY IDENTICAL SECURITIES THAT YOU LATER DELIVER TO COMPLETE THE SHORT SALE EXPLAINS MR GARNER OF ERNST & YOUNG THIS ALLOWS INVESTORS TO LOCK IN A PROFIT WHILE DELAYING ACTUAL RECOGNITION OF THEIR GAIN MANY INVESTORS WITH UNREALIZED PROFITS NEAR YEAR'S END MAY WANT TO CONSIDER A SHORT SALE AGAINST THE BOX TO POSTPONE RECOGNIZING A GAIN UNTIL THE NEXT TAX YEAR MR GARNER SAYS SOME INVESTORS WHO WANT TO PROTECT THEIR GAINS ON APPRECIATED SECURITIES BUT DON'T WANT TO SELL BECAUSE THEY'D HAVE TO PAY TAX ON THOSE GAINS FOR 1993 MIGHT CONSIDER BUYING A PUT OPTION MR GARNER SAYS THAT MEANS BUYING AN OPTIONS CONTRACT THAT GIVES YOU THE RIGHT TO SELL STOCK AT A SET PRICE DURING A SPECIFIC TIME PERIOD BUYING A PUT OPTION CAN SAFEGUARD AN INVESTOR'S GAINS AGAINST POSSIBLE PRICE DECLINES WHILE THE SALE AND CAPITAL GAIN ARE DEFERRED UNTIL THE NEXT YEAR MR GARNER SAYS MAKE MAXIMUM USE OF A KEOGH PLAN AND OTHER TAXDEFERRED STRATEGIES A KEOGH PLAN CAN BE SET UP TO SHELTER SELFEMPLOYMENT INCOME SUCH AS FREELANCE WRITING PAY AND DIRECTORSHIP FEES CONTRIBUTIONS ARE DEDUCTIBLE AND THAT MONEY GROWS TAXDEFERRED UNTIL YOU DECIDE TO WITHDRAW IT EVEN IF YOU DON'T HAVE THE MONEY NOW BE SURE TO SET UP THE KEOGH PLAN BEFORE DEC 31 CONTRIBUTIONS DON'T HAVE TO BE MADE UNTIL THE DATE ON WHICH YOUR TAX RETURN IS DUE INCLUDING ANY EXTENSIONS THE NEW TAX LAW INCLUDES AN IMPORTANT CHANGE THAT SHOULD ENCOURAGE MORE PEOPLE TO CONSIDER GIFTS TO CHARITY OF PROPERTY THAT HAS INCREASED IN VALUE IN ESSENCE THIS PROVISION MEANS DONORS WILL BE ABLE TO DEDUCT A GIFT'S FAIR MARKET VALUE NOT MERELY ITS COST WITHOUT TRIGGERING THE ALTERNATIVE MINIMUM TAX THE LAW APPLIES TO ALL SUCH GIFTS INCLUDING APPRECIATED STOCK BONDS COLLECTIBLES ART AND REAL ESTATE BUT BEFORE MAKING GIFTS OF PROPERTY MAKE SURE YOU WOULDN'T BE BETTER OFF SIMPLY SELLING IT AND DONATING THE MONEY DIRECTLY TO YOUR FAVORITE CHARITY FOR EXAMPLE IF PROPERTY HAS DROPPED IN VALUE CONSIDER SELLING IT TAKING A LOSS THAT CAN BE DEDUCTED AND THEN DONATING THE CASH TO CHARITY SAYS MR KESS WHO ALSO IS A CONSULTING EDITOR AT COMMERCE CLEARING HOUSE THE LARGE TAX PUBLISHER CONSIDER TAKING ADVANTAGE OF YOUR RIGHT TO GIVE AWAY AS MUCH AS 10000 EACH YEAR TO A CHILD A FRIEND OR ANYONE ELSE WITHOUT OWING ANY GIFT TAX IF YOU'RE MARRIED YOU AND YOUR SPOUSE CAN EACH GIVE AWAY UP TO 10000 OR A TOTAL OF 20000 TO ANYONE YOU WANT WITHOUT INCURRING ANY GIFTTAX LIABILITY THERE ARE WAYS TO GIVE AWAY EVEN MORE YOU CAN PAY SOMEONE ELSE'S EDUCATION TUITION AND MEDICAL BILLS WITHOUT LIMIT BE SURE TO PAY THOSE BILLS DIRECTLY RATHER THAN REIMBURSING THE PERSON A LOT OF PEOPLE WHO KNOW ABOUT THE 10000 EXCLUSION DON'T REALIZE THEY CAN DO THIS MR KESS SAYS IF YOU ARE THINKING ABOUT INVESTING IN A MUTUAL FUND BE SURE TO ASK IF THAT FUND IS ABOUT TO PAY A YEAREND CAPITAL GAINS DISTRIBUTION WHICH WOULD BE TAXABLE ASK WHEN THE PAYMENT WILL BE MADE HOW MUCH IT WILL BE AND WHEN YOU CAN INVEST IN THE FUND WITHOUT GETTING THE DISTRIBUTION IF YOU ARE PLANNING A JOBRELATED MOVE SOON CONSIDER DOING IT BEFORE DEC 31 ESPECIALLY IF YOU ARE PAYING YOUR OWN WAY NEW LIMITS ON MOVINGEXPENSE DEDUCTIONS START NEXT YEAR CONSIDERING GETTING MARRIED THIS MONTH OR NEXT POSTPONING THE WEDDING UNTIL JANUARY COULD PRODUCE ENOUGH IN SAVINGS TO PAY FOR THE HONEYMOON THAT'S BECAUSE OF A TAXLAW QUIRK KNOWN AS THE MARRIAGE PENALTY WHICH FORCES MANY TWOINCOME COUPLES TO PAY MORE IN TAXES AS HUSBAND AND WIFE THAN IF THEY HAD REMAINED SINGLE 9311160081 931116 HEARD ON THE STREET SOME SHORT SELLERS THINK POLICY MANAGEMENT MAY SLIDE MORE AS EARNINGS REMAIN A MYSTERY BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL SO YOU GUESSED THE NUMBER OF JELLY BEANS IN THE JAR AT THE OFFICE PARTY HERE'S A TOUGHER CHALLENGE TRY GUESSING POLICY MANAGEMENT SYSTEMS' EARNINGS FOR THE PAST THREE YEARS NOBODY KNOWS THE BLYTHEWOOD SC COMPANY MAKES SOFTWARE USED BY INSURERS CHIEFLY TO PROCESS CLAIMS IT HASN'T ISSUED A SECONDQUARTER OR THIRDQUARTER FINANCIAL REPORT AND AUDITORS THIS YEAR WITHDREW THEIR OPINIONS ON RESULTS FOR 1990 THROUGH 1992 THE SECURITIES AND EXCHANGE COMMISSION HAS BEEN INVESTIGATING THE COMPANY'S ACCOUNTING THE COMPANY SAYS IT HOPES TO ISSUE THE MISSING FINANCIAL STATEMENTS AND RESTATE THE OLD ONES BY THE END OF THIS MONTH THE SHARES HAVE DIVED 70 TO 25 3/4 YESTERDAY ON THE NEW YORK STOCK EXCHANGE FROM 87 1/4 IN MARCH NIBBLING BY BARGAIN HUNTERS HAS BROUGHT THEM BACK FROM THE AUGUST LOW OF 21 5/8 BUT BARGAINHUNTING HERE MAY BE A MISTAKE SOME SMART SHORT SELLERS WHO HAVE MADE MONEY BETTING AGAINST THE STOCK FRED S WADLER OF GILFORD SECURITIES AND MALCOLM LOWENTHAL OF WERTHEIM SCHRODER THINK IT HAS FURTHER TO FALL SHORT SELLERS BORROW STOCK AND SELL IT AT SOME POINT THEY MUST BUY SHARES TO REPLACE THE BORROWED ONES BUT IF THE STOCK FALLS THEY WIN BECAUSE THE REPLACEMENT SHARES ARE BOUGHT CHEAPLY THE LEADING SHORT IN THE STOCK IS GILFORD SECURITIES WHICH HAS MADE A HANDSOME PROFIT RIDING IT ALL THE WAY DOWN GILFORD'S MR WADLER SAYS HE DOESN'T PLAN TO UNWIND HIS SHORT POSITION UNTIL THE STOCK FALLS INTO THE HIGH TEENS AT THAT POINT HE WOULD REASSESS THE SITUATION BEFORE THE ACCOUNTING SCANDAL HIT MOST ANALYSTS FIGURED POLICY MANAGEMENT WOULD EARN NORTH OF 2 A SHARE IN 1993 AND OPTIMISTS WERE TALKING ABOUT 3 A SHARE IN 1994 BUT MR WADLER ESTIMATES THAT THE COMPANY'S TRUE ANNUAL EARNINGS POWER IS NO MORE THAN 1 A SHARE THE COMPANY ALSO HAS ABOUT 7 A SHARE IN CASH MR WADLER SAYS SO HE VALUES THE STOCK AT 17 WHICH IS THE CASH PLUS 10 TIMES THE ESTIMATED EARNINGS ANOTHER SHORT SELLER WITH A REPUTATION FOR PICKING TARGETS ASTUTELY IS WERTHEIM SCHRODER'S MR LOWENTHAL WE GOT IN AROUND 40 AND INCREASED THE BET AGAINST THE STOCK AROUND 27 MR LOWENTHAL SAYS HE BELIEVES THE SHARES WILL SETTLE IN THE TEENS AT BEST MR LOWENTHAL SAYS IT BAFFLES HIM HOW ANY INSTITUTION CAN OWN IT YOU DON'T KNOW WHAT THE HELL THEY'VE EARNED FOR YEARS THEY STILL HAVEN'T REPORTED THE JUNE QUARTER AND I UNDERSTAND IBM'S PIECE ABOUT 16 OF THE COMPANY IS FOR SALE A WALL STREET JOURNAL ARTICLE ON OCT 8 SAID THE COMPUTER GIANT IS QUIETLY SEEKING A BUYER FOR ITS STAKE IBM DECLINES TO COMMENT ON WHETHER IT HAS SOLD ANY OF ITS POLICY MANAGEMENT STOCK OR PLANS TO A CLASSACTION LAWSUIT PENDING IN FEDERAL DISTRICT COURT IN COLUMBIA SC CHARGES THAT POLICY MANAGEMENT EXAGGERATED ITS SALES AND EARNINGS ONE ALLEGED TECHNIQUE WAS TO HOLD THE BOOKS OPEN TO ALLOW ADDITIONAL SALES AFTER A QUARTER HAD ENDED ANOTHER ALLEGATION IS THAT THE COMPANY ISSUED SIDE LETTERS PROMISING FUTURE REBATES OR CANCELLATION RIGHTS TO CUSTOMERS THE COMPANY HAS DENIED WRONGDOING AND SAID IT WILL VIGOROUSLY DEFEND AGAINST THE LAWSUIT A COMPANY SPOKESMAN SAYS POLICY MANAGEMENT WON'T COMMENT ON THE ALLEGATIONS ABOUT HOLDING THE BOOKS OPEN OR ABOUT SIDE LETTERS BECAUSE THOSE ISSUES ARE IN LITIGATION ASKED IF THE COMPANY BELIEVES THERE WAS WRONGDOING IN ITS ACCOUNTING THE SPOKESMAN SAYS I DON'T THINK THE QUESTION OF WRONGDOING HAS COME UP THERE ARE DIFFERENT WAYS OF RECOGNIZING REVENUE ON SOFTWARE INSTALLATIONS COMPANY PRESIDENT G LARRY WILSON DECLINES TO BE INTERVIEWED KIDDER PEABODY ANALYST CHARLES E PHILLIPS SAYS IT IS TOO EARLY TO BUY THE STOCK PROPERTY AND CASUALTY INSURERS LONG POLICY MANAGEMENT'S MAIN CUSTOMERS ARE STILL STRUGGLING THROUGH A PERIOD OF UNDERWRITING LOSSES HE SAYS POLICY MANAGEMENT WANTS TO EXPAND INTO HEALTH INSURANCE HE SAYS BUT WITH THE FUTURE RULES FOR HEALTH CARE UNCERTAIN HEALTH INSURERS AREN'T GOING TO RUN OUT AND BUY HEAPS OF SOFTWARE NOW THE STOCK ISN'T COMPLETELY FRIENDLESS ANALYST STEPHEN SHOOK OF INTERSTATE/JOHNSON LANE IN CHARLOTTE NC STILL HOPES THE COMPANY CAN GO BACK TO THE GOOD OLD DAYS OF CLOCKWORK 20 INCREASES IN REPORTED EARNINGS HE SAYS THAT THE COMPANY'S PRODUCTS ARE WELLREGARDED AND THAT HE MIGHT RECOMMEND THE STOCK AS SOON AS THE REVISED FINANCIALS ARE ISSUED WHILE MOST US MONEY MANAGERS HAVE BEEN SELLERS OF LATE THE GOVERNMENT OF SINGAPORE RECENTLY PURCHASED A 56 STAKE SINGAPORE OFFICIALS WON'T COMMENT ON WHY THE CORE OF THE COMPANY IS STILL QUITE GOOD SAYS DAVID SOETEBIER ANALYST WITH AG EDWARDS IN ST LOUIS SO WOULD HE RECOMMEND THE STOCK ONCE EARNINGS ARE RESTATED IF THEY GET A NEW CHIEF FINANCIAL OFFICER MAYBE I'LL CONSIDER IT HE SAYS ROBERT L GRESHAM THE CHIEF FINANCIAL OFFICER COULDN'T BE REACHED THE COMPANY SPOKESMAN SAYS THAT NO EXECUTIVE CHANGES HAVE BEEN MADE SINCE THE ACCOUNTING PROBLEMS AROSE AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING 9311160080 931116 RETAILING SHOPPING HOOKS HIGHTONED VIEWERS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL MELANIE EISENBERG DOESN'T FIT THE STEREOTYPE OF THE TV SHOPPER THE 35YEAROLD LONG ISLAND NY NATIVE IS MARRIED WITHOUT CHILDREN WORKS A FULLTIME PROFESSIONAL JOB AND HAD ALWAYS THOUGHT THAT TV SHOPPING CHANNELS WERE A JOKE BUT AFTER BUYING A SILK RAINCOAT FROM HOME SHOPPING CLUB FOR 40 LESS THAN A LOCAL DEPARTMENT STORE'S PRICE AND IN A COLOR THE STORE DIDN'T STOCK MS EISENBERG IS NOW A TRUE BELIEVER FOR YEARS MARKETERS HAVE CATEGORIZED HOME SHOPPERS AS JUNKJEWELRYBUYING HOUSEBOUND WOMEN FROM BLUECOLLAR HOUSEHOLDS WITH OVEREXTENDED CREDIT CARDS AND UNTIL RECENTLY THE HOMESHOPPING CHANNELS HAVE DONE LITTLE INDEPTH MARKET RESEARCH TO CHALLENGE THAT STEREOTYPE BUT SOME NEW STUDIES INDICATE THAT WHILE MOST HOME SHOPPERS ARE INDEED WOMEN THEY ARE LIKELY TO BE IN THEIR PEAK EARNING YEARS SOCIALLY ACTIVE MARRIED WORKING OUTSIDE THE HOME AND GENERALLY BETTER EDUCATED THAN THE AVERAGE STORE SHOPPER THOSE DEMOGRAPHICS ARE STEADILY IMPROVING AS QVC NETWORK INC AND OTHER CHANNELS TRY TO OFFER HIGHERQUALITY MERCHANDISE OFTEN PRESENTED BY CELEBRITIES AND THE GENTRIFICATION OF TV HOME SHOPPING IS LIKELY TO CONTINUE AS COMPANIES SUCH AS CATALOG POWERHOUSE SPIEGEL INC AND RETAILER RH MACY & CO BEGIN TO CREATE THEIR OWN HOMESHOPPING SERVICES MOST STUDIES FIGURE MEN ARE BARELY 20 OF THE TV SHOPPING AUDIENCE BUT THEIR NUMBERS ARE GROWING AS QVC AND RIVAL HOME SHOPPING NETWORK INC LURE MALES WITH SUCH PRODUCTS AS BATS AND BALLS AUTOGRAPHED BY JOE DIMAGGIO AND MERCHANDISE STAMPED WITH NATIONAL FOOTBALL LEAGUE TEAM LOGOS ATTRACTING MORE MEN AND MORE AFFLUENT CONSUMERS IS KEY TO THE FUTURE GROWTH OF THE HOMESHOPPING BUSINESS QVC WHICH IS BATTLING VIACOM INC FOR CONTROL OF PARAMOUNT COMMUNICATIONS INC PLANS A SECOND SHOPPING CHANNEL FOCUSING ON ACTIVE LIFESTYLES Q2 WILL CATER TO PEOPLE'S INTEREST IN HEALTH FITNESS HOME DECORATING AND OTHER PURSUITS AND IS EXPECTED TO DRAW MORE AFFLUENT BUYERS ALREADY A 25 BILLION BUSINESS HOME SHOPPING IS PROJECTED BY SOME TO REACH 30 BILLION IN 10 YEARS WHETHER THE INDUSTRY WILL ACHIEVE THAT IS FAR FROM CERTAIN TO CREATE AND OPERATE HOMESHOPPING CHANNELS IS COSTLY AND RETURNS ON SOME MERCHANDISE RUN AS MUCH AS 40 TO 50 OF SALES MUCH HIGHER THAN IN TRADITIONAL RETAILING HOME SHOPPING SAYS ITS AVERAGE RATE OF RETURN IS 20 MOREOVER PEOPLE STILL LIKE TO TRY ON AND BROWSE THROUGH MERCHANDISE THAT IS GO SHOPPING BUT THE TVSHOPPING INDUSTRY IS CLEARLY TAKING A BITE OUT OF THE 60 BILLION US CATALOG INDUSTRY AND THE 250 BILLION RETAIL DEPARTMENTSTORE BUSINESS ROPER REPORTS A SERVICE OF ROPER STARCH WORLDWIDE INC SHOWS THAT THE PERCENTAGE OF RESPONDENTS SHOPPING FROM MAILORDER CATALOGS OR DEPARTMENTSTORE CATALOGS HAS DROPPED STEADILY FROM 1988 TO THE LATEST SURVEY IN 1992 WHILE THE PERCENTAGE OF THOSE ORDERING FROM HOMESHOPPING CHANNELS HAS REMAINED VIRTUALLY CONSTANT WITH EACH HAPPY CONVERT TO TV HOME SHOPPING SUCH AS MS EISENBERG CATALOG HOUSES AND RETAILERS ARE LOSING POTENTIAL SALES AND FORECASTERS WARN RETAILERS NOT TO UNDERESTIMATE THE DEMOGRAPHICS OF THE TV SHOPPER MIKE HAND A VICE PRESIDENT OF NPD GROUP INC SAYS HIS MARKETRESEARCH FIRM'S RESEARCH SHOWS THAT THE TV SHOPPER IS ONE THAT UP TO THIS POINT HAS PROBABLY BEEN SHOPPING IN THE MALLS HE ADDS ASK ANY DEPARTMENT STORE TO DESCRIBE THEIR CUSTOMER BASE AND THEY WOULD DESCRIBE THIS KIND OF WOMAN SOME MARKETING EXPERTS SAY BARRIERS REMAIN TO LURING MORE AFFLUENT SHOPPERS FOR ONE THING DESPITE IMPROVEMENTS IN THE MERCHANDISE THEY OFFER HOMESHOPPING CHANNELS ARE STILL LONG ON CHEAP JEWELRY AND SHORT ON MAJOR BRANDS AND EVEN IF TV SHOPPERS FIND WHAT THEY WANT THEY COMPLAIN ABOUT HAVING TO ENDURE HOURS OF WATCHING TO FIND IT QVC RECENTLY LAUNCHED A NEW AD CAMPAIGN ON CABLE CHANNELS THAT TELLS VIEWERS THE EXACT TIME A PARTICULAR PRODUCT WILL BE SHOWCASED IF THEY WANT TO LEGITIMIZE TV SHOPPING AMONG NEW SHOPPERS OR DEDICATED STORE SHOPPERS THEY NEED TO MAKE IT EASY FOR ME TO KNOW WHAT IS ON AND WHEN SAYS WENDY LIEBMANN PRESIDENT AND FOUNDER WSL MARKETING INC A CONSULTING AND RESEARCH FIRM THAT HAS STUDIED TV SHOPPING THE CHANNELS DO SOME PROMOTION ON AIR BUT THAT'S NOT BROAD ENOUGH MS LEIBMANN'S WSL STUDY NOTED THAT ABOUT TWOTHIRDS OF TV CHANNEL SHOPPERS INTERVIEWED HAD PURCHASED JEWELRY AND THE MORE OFTEN THEY SHOPPED THE MORE JEWELRY THEY BOUGHT WHILE ANOTHER STUDY BY DELOITTE & TOUCHE ALSO SHOWED JEWELRY AS CLEARLY ONE OF THE MOST POPULAR ITEMS THE STUDY ALSO SAYS TV SHOPPERS ARE HUNGRY FOR MORE THAN BAUBLES TV SHOPPERS LISTED TRAVEL PACKAGES CHILDREN'S CLOTHING MEN'S CLOTHING MAJOR APPLICANCES AND FURNITURE AS THE TOP CATEGORIES THEY WOULD LIKE TO SEE OFFERED ON SHOPPING CHANNELS FOR EXAMPLE LAURA PAGE A 43YEAROLD MANAGEMENT CONSULTANT IN MADISON WIS SAYS SHE IS ALIENATED BY THE IMMENSE AMOUNT OF JEWELRY FEATURED DAILY THEY HAVE A HECK OF A LOT OF THE SAME THING JEWELRY AND RINGS SAYS MS PAGE I PERSONALLY DON'T WEAR A LOT OF JEWELRY BUT REGARDLESS THAT'S SUCH A NARROW CATEGORY MS PAGE STILL HASN'T MADE A PURCHASE FROM TV THE MERCHANDISE IS JUST TOO HITORMISS SHE SAYS EVEN IF THE TV MERCHANDISE WERE OF SUPERIOR QUALITY MOST PEOPLE STILL LIKE THE SELECTION AND THE ATMOSPHERE OF STORES AT CRUCIAL SHOPPING PERIODS LIKE CHRISTMAS IN A TELEPHONE STUDY LAST MONTH CONDUCTED BY DELOITTE & TOUCHE 1000 PEOPLE WERE ASKED IF THEY PLAN TO DO ANY HOLIDAY SHOPPING THROUGH TV HOMESHOPPING CHANNELS THE RESULTS 946 HAVE NO PLANS TO DO SO 37 SAID THEY PLAN SOME TV CHRISTMAS SHOPPING AND 2 COULDN'T ANSWER EITHER WAY BUT MS LEIBMANN WARNS RETAILERS NOT TO BE TOO COMPLACENT EVEN IF AN ITEM IS BOUGHT FROM TV ON IMPULSE THAT MEANS THE TV SHOPPER HAS LESS TO SPEND ELSEWHERE MS LEIBMANN ADDS IN THESE DIFFICULT ECONOMIC TIMES THE 100 SPENT ON TV THAT DAY PROBABLY MEANS THEY WON'T HAVE 100 TO SPEND AT RETAIL 9311160079 931116 CREDIT RATINGS WALT DISNEY CO BURBANK CALIF STANDARD & POOR'S CORP PLACED THE RATINGS FOR ABOUT 12 BILLION IN WALT DISNEY SENIOR DEBT AND COMMERCIAL PAPER ON CREDITWATCH REVIEW WITH NEGATIVE IMPLICATIONS S&P BLAMED THE ACTION ON A LARGERTHANEXPECTED 900 MILLION LOSS FOR THE PAST YEAR AT THE ENTERTAINMENT COMPANY'S 49OWNED EURO DISNEY SCA PLUS POSSIBLE PRESSURES ON DISNEY TO HELP WITH DEBT RESTRUCTURING AT THE EUROPEAN OPERATION THE CREDITRATING COMPANY NOTED THAT DISNEY CONTINUES TO MAINTAIN A STRONG BALANCE SHEET WITH ABOUT 196 BILLION IN CASH AND INVESTMENTS AT JUNE 30 AND AN EQUAL AMOUNT OF DEBT S&P CURRENTLY RATES THE SENIOR DEBT DOUBLEAMINUS WHILE THE COMMERCIAL PAPER IS RATED A1 LAST WEEK MOODY'S INVESTORS SERVICE INC PUT 3 BILLION IN DISNEY DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE JAPAN AIRLINES TOKYO MOODY'S INVESTORS SERVICE SAID IT LOWERED ITS SENIOR DEBT RATING OF THIS AIRLINE TO SINGLEA2 FROM SINGLEA1 BASED ON EXPECTATIONS THAT EARNINGS AND DEBTPROTECTION MEASURES WILL REMAIN UNDER PRESSURE OVER THE INTERMEDIATE TERM ABOUT 22 BILLION OF DEBT IS AFFECTED MOODY'S CONFIRMED ITS PRIME1 COMMERCIALPAPER RATING OF TWO JAPAN AIRLINES UNITS THE RATINGS AGENCY SAID THAT TRAVEL DEMAND ESPECIALLY HIGHERMARGIN INTERNATIONAL BUSINESS TRAFFIC HAS BEEN SOFT BECAUSE OF SLOWERTHANEXPECTED GROWTH IN THE ECONOMIES OF BOTH JAPAN AND THE WORLD IN ADDITION MANY JAPANESE CORPORATIONS HAVE CUT TRAAVEL BUDGETS REDUCING AIRLINE REVENUE MOODY'S SAID FURTHER IMPROVEMENT IN THE AIRLINE'S EARNINGS WILL DEPEND ON A STRONG REBOUND IN WORLD ECONOMIES WHICH ISN'T LIKELY OVER THE INTERMEDIATE TERM WHEELINGPITTSBURGH CORP NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED THE RATING OF THE COMPANY'S SERIES A CONVERTIBLE PREFERRED STOCK TO B3 FROM B2 THE RATING AGENCY SAID THAT ALTHOUGH THE OUTLOOK FOR IMPROVED OPERATING RETURNS AT THE COMPANY IS POSITIVE A RELATIVELY MODEST RATE OF ECONOMIC RECOVERY IS LIMITING THE SCOPE FOR IMPROVEMENT IN ADDITION THE COMPANY'S SPENDING AND INVESTMENT PLANS ARE EXPECTED TO CONSTRAIN IMPROVEMENTS TO DEBTPROTECTION MEASURES ACCORDING TO MOODY'S THE RATING CHANGE AFFECTS 145 MILLION IN SECURITIES WHEELINGPITTSBURGH CORP IS THE PARENT OF WHEELINGPITTSBURGH STEEL CORP THE EIGHTHLARGEST INTEGRATED STEEL PRODUCER IN THE US MEANWHILE WHEELINGPITTSBURGH CORP ANNOUNCED THAT IT SOLD THE COAL MINING OPERATIONS OF ITS SUBSIDIARY WP COAL CO FOR 105 MILLION THE COAL OPERATIONS WERE SOLD TO STIRRAT COAL CO A SUBSIDIARY OF AT MASSEY COAL CO IN ADDITION THE COMPANY SAID WHEELINGPITTSBURGH STEEL HAS ENTERED INTO A 10YEAR ARRANGEMENT TO SUPPLY COAL TO CENTRAL WEST VIRGINIA ENERGY CO 9311160078 931116 GM MAY USE SHARES TO REIN IN PENSION LIABILITY PLAN TO GIVE 57 BILLION IN CLASS E STOCK TO FUND FACES MANY OBSTACLES BY ROBERT L SIMISON AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GENERAL MOTORS CORP UNVEILED AN INNOVATIVE BUT RISKY PLAN FOR REDUCING THE BIGGEST US UNFUNDED PENSION LIABILITY A PROPOSAL TO GIVE A 57 BILLION BLOCK OF ITS CLASS E STOCK TO A FUND FOR HOURLY WORKERS WHILE THE MOVE APPARENTLY WOULD TAKE A BIG CHUNK OUT OF GM'S 24 BILLION PENSION LIABILITY BOLSTERING SHAREHOLDER EQUITY AND REASSURING EDGY FEDERAL OFFICIALS IT FACES MAJOR REGULATORY HURDLES AND BOARD CLEARANCE AND WOULD REQUIRE AN ACT OF CONGRESS NONETHELESS GM AND GOVERNMENT OFFICIALS WHO HAVE BEEN HUDDLING OVER THE PROBLEM FOR MONTHS HAILED THE PROPOSAL AS A SIGNIFICANT ATTEMPT TO DO SOMETHING TO EASE A MAJOR HEADACHE FOR BOTH OF THEM GM HAD BEEN UNDER CONSIDERABLE PRESSURE TO OFFER SOME GOOD NEWS ON THE PENSION ISSUE WHEN IT HOLDS AN ANNUAL SESSION TODAY WITH SECURITIES ANALYSTS AND INSTITUTIONAL INVESTORS THE PROPOSAL TO CONTRIBUTE SHARES TIED TO EARNINGS OF GM'S ELECTRONIC DATA SYSTEMS INC UNIT WAS DISCLOSED AFTER THE MARKET CLOSED YESTERDAY GM'S REGULAR COMMON SHARES FELL 375 CENTS TO 5150 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SEPARATELY GM IS EXPECTED TO DISCUSS MOVES TO PROVIDE MORE WORK FOR HUNDREDS OF ITS IDLED AUTO WORKERS GM SAID IT IS CONSIDERING CONTRIBUTING ALL 185 MILLION OF ITS REMAINING AVAILABLE TREASURY SHARES OF CLASS E STOCK TO ITS PENSION FUND FOR HOURLY WORKERS AT YESTERDAY'S BIG BOARD CLOSING PRICE OF 31 THE PROPOSED CONTRIBUTION WOULD BE VALUED AT ABOUT 57 BILLION SEPARATELY CHRYSLER CORP SAID IT CONTRIBUTED 26 BILLION TO ITS PENSION FUND SO FAR THIS YEAR THE CLASS E SHARES REPRESENT A DIVIDEND CLAIM ON THE EARNINGS OF GM'S WHOLLY OWNED EDS UNIT NOT AN EQUITY STAKE IN IT GM SAID ITS BOARD'S PRESENT POLICY IS TO DECLARE CLASS E DIVIDENDS REPRESENTING 30 OF THE PRIOR YEAR'S EDS EARNINGS THAT CURRENTLY AMOUNTS TO 40 CENTS A SHARE ANNUALLY BY CONTRIBUTING THE 185 MILLIONSHARE BLOCK GM WOULD THUS GIVE UP DIVIDENDS OF 74 MILLION A YEAR PRESENTLY THERE ARE 247 MILLION CLASS E SHARES IN PUBLIC HANDS A FURTHER 45 MILLION ARE HELD IN RESERVE FOR POSSIBLE CONVERSION OF SERIES C CONVERTIBLE PREFERENCE STOCK ISSUED IN 1992 GM SAID THE CONTRIBUTION OF CLASS E SHARES WOULDN'T DILUTE EARNINGS ATTRIBUTABLE TO THE CLASS E STOCK CURRENTLY OUTSTANDING BECAUSE THE DIVIDEND BASE USED FOR DETERMINING DIVIDENDS AND PERSHARE EARNINGS WILL REMAIN THE SAME GM SAID IT BELIEVES THE MOVE WOULD BE NEUTRAL TO PERSHARE EARNINGS FOR ITS REGULAR COMMON SHARES GM SAID THE CONTRIBUTION OF CLASS E SECURITIES TO THE PENSION FUND WOULD BE IN ADDITION TO ITS PLANNED CASH CONTRIBUTIONS WHICH SO FAR THIS YEAR HAVE COME TO MORE THAN 4 BILLION COMPANY OFFICIALS SAID THE AIM IS TO ACCELERATE A PLAN TO HAVE THE PENSION PLANS FULLY FUNDED BY 2000 THE OFFICIALS SAID THE PLAN INVOLVES CASH CONTRIBUTIONS IN EXCESS OF AMOUNTS REQUIRED BY FEDERAL LAW AND THOSE PAYMENTS ARE TO CONTINUE REGARDLESS OF WHETHER THE CLASS E CONTRIBUTION IS CLEARED CLEARLY GM IS TRYING TO FIND A WAY TO RESOLVE THE UNFUNDED PENSION LIABILITY WITHOUT DIVERTING MORE CASH AND WITHOUT DILUTING ITS REGULAR COMMON SHARES AND AS GM DISCLOSED IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY THE SIZE OF THE LIABILITY HOLDS THE POTENTIAL OF SIGNIFICANTLY ERODING SHAREHOLDER EQUITY GM ESTIMATED THAT THE INCREASE IN THE SIZE OF ITS PENSION LIABILITY TO 24 BILLION AT YEAR END FROM 14 BILLION AT THE END OF 1992 WOULD REDUCE SHAREHOLDER EQUITY AT YEAR END BY 23 BILLION THE INCREASED LIABILITY REFLECTS LOWER INTEREST RATES AND RICHER PENSION BENEFITS UNDER GM'S NEW LABOR CONTRACT AS OF THE END OF 1992 GM'S SHAREHOLDER EQUITY AMOUNTED TO JUST 62 BILLION GM OFFICIALS SAID THAT IF THE CONTRIBUTION IS APPROVED SHAREHOLDER EQUITY WOULD RISE BY THE VALUE OF THE CONTRIBUTION CURRENTLY 57 BILLION AT THE SAME TIME GM MADE CLEAR THAT THERE'S NO GUARANTEE THAT THE PROPOSED CONTRIBUTION WILL EVER TAKE PLACE THAT'S BECAUSE IT WOULD REQUIRE CLEARANCE BY THE INTERNAL REVENUE SERVICE AND THE LABOR DEPARTMENT'S PENSION WELFARE BENEFITS ADMINISTRATION WHICH WOULD HAVE TO GRANT EXEMPTIONS FROM RULES GOVERNING THE INVESTMENT HOLDINGS OF PENSION FUNDS FOR EXAMPLE GM SAID IF THE CLASS E CONTRIBUTION WERE MADE ITS HOURLY PENSION PLAN WOULD HOLD 38 OF THE CLASS E SHARES EXCEEDING A FEDERAL LIMIT OF 25 ON A PLAN'S HOLDING IN ANY CLASS OF SECURITIES ISSUED BY THE EMPLOYER IN ADDITION THE CLASS E HOLDING WOULD EXCEED A LIMIT OF 10 ON THE AMOUNT OF A PLAN'S ASSETS THAT AN EMPLOYER'S SHARES CAN REPRESENT GM SAID THE PLAN ALREADY OWNS 17 MILLION CLASS E SHARES WHICH WERE CONTRIBUTED IN 1977 MOREOVER GM SAID THE PROPOSAL WOULD REQUIRE AN EXEMPTION FROM A 10 EXCISE TAX THAT CAN APPLY WHEN LARGE CONTRIBUTIONS ARE MADE TO A PENSION PLAN THEY ACKNOWLEDGED THAT LEGISLATION WOULD BE REQUIRED IN FACT THE CLINTON ADMINISTRATION'S PROPOSED REFORM OF THE PENSION BENEFIT GUARANTY CORP WHICH AIMS TO ACCELERATE THE FUNDING OF UNDERFUNDED PLANS WOULD INCLUDE SUCH AN EXEMPTION GM SAID I AM PLEASED TO SEE GM COMING FORWARD WITH A PROPOSAL OF THIS MAGNITUDE ROBERT REICH THE SECRETARY OF LABOR AND THE CHAIRMAN OF THE PENSION BENEFIT GUARANTY CORP SAID IN A STATEMENT HE SAID THE DEPARTMENT OF LABOR WILL REVIEW THE PROPOSAL CAREFULLY TO BE SURE THAT THE RETIREMENT SECURITY OF GM'S WORKERS AND RETIREES IS PROTECTED SEPARATELY GM HAS BEGUN QUIETLY CREATING JOBS FOR SOME OF ITS LAIDOFF WORKERS IN ITS NEW LABOR CONTRACT GM AGREED TO ADD 200 SEATMAKING JOBS AT ITS ASSEMBLY PLANT IN VAN NUYS CALIF WHICH WAS CLOSED IN 1992 AND TO START BUILDING SEATS IN PONTIAC MICH ADDING 140 JOBS ALTHOUGH OUTSIDE SUPPLIERS COULD DO THE WORK PAYING LESS THAN HALF GM'S AVERAGE HOURLY WAGESANDBENEFITS COST OF 87000 A YEAR GM WOULD HAVE TO SPEND ABOUT 60000 A WORKER IN UNEMPLOYMENT BENEFITS TO KEEP THE WORKERS IDLED THEY PAY THE GUYS WHETHER THEY WORK OR NOT OBSERVED ONE SECURITIES ANALYST WHILE SUCH MOVES MAY HELP GM GET SOME VALUE FOR WHAT IT WOULD PAY THE WORKERS ANYWAY THEY COULD HINDER EFFORTS TO MAKE ITS OPERATIONS MORE COMPETITIVE BY SHEDDING EXCESS WORKERS 9311160077 931116 BUSINESS BRIEF HUGHES SUPPLY INC FISCAL THIRDQUARTER PROFIT ROSE CHIEF EXECUTIVE SAYS HUGHES SUPPLY INC ORLANDO FLA EXPECTS TO REPORT FISCAL THIRDQUARTER EARNINGS OF ABOUT 18 MILLION OR 34 CENTS TO 36 CENTS A SHARE DAVID H HUGHES PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE DISTRIBUTOR OF ELECTRICAL PLUMBING AND UTILITY SUPPLIES HAD A RESTATED NET INCOME OF 757000 OR 17 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES FOR THE QUARTER ENDED OCT 31 TOTALED 175 MILLION TO 180 MILLION COMPARED WITH 145 MILLIION THE YEAR BEFORE FOR FISCAL 1994 MR HUGHES SAID IN AN INTERVIEW THAT THE COMPANY WILL PROBABLY EARN ABOUT 110 A SHARE IN FISCAL 1993 HUGHES SUPPLY EARNED 54 CENTS A SHARE MR HUGHES ATTRIBUTED THE GAINS IN EARNINGS TO INCREASED SALES BETTER MARKETING AND IMPROVED OPERATING MARGINS WHICH RESULTED FROM CONTROLS ON SALES AND ADMINISTRATIVE EXPENSES 9311160076 931116 WELL COMES UP DRY FOR ARCO PHILLIPS OFF NORTH ALASKA BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES ATLANTIC RICHFIELD CO SAID AN OIL EXPLORATION WELL DRILLED WITH PHILLIPS PETROLEUM CO OFF THE NORTH COAST OF ALASKA FAILED TO FIND COMMERCIAL QUANTITIES OF OIL THE WELL WILD WEASEL NO 1 WAS ARCO'S THIRD STRAIGHT DUD DRILLED OFF NORTHERN ALASKA THIS YEAR A TRIO OF DISAPPOINTING RESULTS FROM A ONCEPROMISING REGION ALL THREE WELLS WERE DRILLED IN A CONCENTRATED AREA IN CAMDEN BAY AND THEIR FAILURE PROBABLY WILL QUELL INTEREST IN THE AREA ANALYSTS SAID THE OFFSHORE AREA OF CAMDEN BAY IS ABOUT 60 MILES EAST OF THE VAST ONSHORE PRUDHOE BAY OILFIELD AND DUE NORTH OF THE SENSITIVE ARCTIC NATIONAL WILDLIFE REFUGE THERE HAVE BEEN A NUMBER OF NOTABLE DISAPPOINTMENTS AND RIGHT NOW THE TREND APPEARS TO BE PRETTY NEGATIVE SAID MICHAEL YOUNG AN ANALYST AT SMITH BARNEY ARCO SAID THE WELL WAS DRILLED TO A DEPTH OF 9314 FEET BY ITS ARCO ALASKA INC UNIT AT A COST OF 22 MILLION IT WAS PLUGGED AND ABANDONED AFTER ANALYSIS THE COMPANY SAID THE WILD WEASEL WELL ABOUT EIGHT MILES OFFSHORE LAY BETWEEN LAND AND THE SEPARATE KUVLUM STRUCTURE DISCOVERED LAST YEAR ABOUT 16 MILES OFFSHORE ARCO WITH A 46 STAKE WAS THE OPERATOR PHILLIPS PETROLEUM HELD THE REMAINING INTEREST BOTH COMPANIES SAID YESTERDAY THAT THEY EXPECT TO ACCOUNT FOR THE FULL COST OF THE WELL IN THE CURRENT QUARTER THE ORIGINAL KUVLUM DISCOVERY WELL ANNOUNCED IN OCTOBER 1992 PRODUCED 3400 BARRELS OF OIL A DAY AND RAISED HOPES OF A MAJOR NEW FIND OFF ALASKA HOWEVER TWO TEST WELLS DRILLED NEARBY THIS SUMMER FAILED TO FIND INDICATION OF SUFFICIENT RESERVES TO PROMPT COMMERCIAL DEVELOPMENT OF THE FIELD THERE REMAINED HOPE HOWEVER THAT THE WILD WEASEL STRUCTURE LYING BETWEEN KUVLUM AND THE SHORE WOULD ADD SUFFICIENT RESERVES TO MAKE BOTH AREAS COMMERCIALLY VIABLE A BILLION BARRELS OR MORE OF RECOVERABLE CRUDE OIL RESERVES WAS THOUGHT TO BE NEEDED FOR THAT THAT HOPE WAS DASHED WITH YESTERDAY'S ANNOUNCEMENT FROM A PURELY GEOLOGICAL POINT OF VIEW THE RESULTS MAY NOT HAVE BEEN THAT BAD SAID OPPENHEIMER & CO ANALYST PAUL B TING BUT I DON'T THINK THERE WILL BE DRILLING SOON IN THAT AREA BUT INFORMATION MAY HAVE BEEN ONE IMPORTANT PRIZE CAPTURED BY THE PARTNERS WHO HAVE KEPT AN UNUSUAL AMOUNT OF INFORMATION ABOUT WELLS SECRET BOTH WILD WEASEL AND KUVLUM ARE BELIEVED TO HAVE GEOLOGICAL STRUCTURES THAT MIGHT AID INTERPRETATION OF BANNED ONSHORE AREAS IN THE ARCTIC NATION WILDLIFE REFUGE WHERE ENVIRONMENTALISTS AND OIL INTERESTS HAVE ARGUED ABOUT ACCESS ARCO SHARES FELL 1625 TO 10775 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMID A GENERALLY DECLINING MARKET FOR OIL ISSUES PHILLIPS SHARES ALSO FELL 1625 TO 2950 IN BIG BOARD TRADING 9311160075 931116 BUSINESS BRIEF TIFFANY & CO NET RISE LAID TO REVAMPING IN FISCAL THIRD QUARTER TIFFANY & CO POSTED A SHARP INCREASE IN ITS FISCAL THIRDQUARTER EARNINGS REFLECTING THE RECENT REALIGNMENT OF ITS JAPANESE BUSINESS IN THE FISCAL QUARTER ENDED OCT 31 THE JEWELRY RETAILER'S NET INCOME JUMPED TO 33 MILLION OR 21 CENTS A SHARE FROM 56000 A YEAR EARLIER TIFFANY IN NEW YORK SAID ITS SALES FOR THE QUARTER ENHANCED BY A 79 JUMP IN INTERNATIONAL REVENUE ROSE 27 TO 1347 MILLION FROM 1059 MILLION A YEAR AGO IN JUNE TIFFANY TOOK OVER RESPONSIBILITY FOR MARKETING AND MERCHANDISING AT ITS 29 JAPANESE STORES WHICH FORMERLY WERE OPERATED BY MITSUKOSHI LTD A BIG DEPARTMENTSTORE CHAIN IN JAPAN AS A RESULT TIFFANY NOW RECORDS ITS JAPANESE TRANSACTIONS AS RETAIL SALES TO CUSTOMERS INSTEAD OF WHOLESALE SALES TO MITSUKOSHI IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY TIFFANY SHARES WERE QUOTED AT 3175 A SHARE UP 1125 9311160074 931116 LAW LEGAL BEAT RULING ALLOWS HOMEOWNERS TO SUE BUILDERS FOR EMOTIONAL DISTRESS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL HOME BUILDERS ARE NERVOUS ABOUT A RECENT CALIFORNIA APPEALSCOURT RULING THAT ALLOWS UNHAPPY HOMEOWNERS TO HAMMER DEVELOPERS WITH EMOTIONALDISTRESS CLAIMS THE RULING WHICH DEVELOPERS SAY IS APPARENTLY THE FIRST OF ITS KIND IN THE NATION HAS ALREADY LED TO A SPATE OF NEW EMOTIONALDISTRESS ALLEGATIONS IN OTHER LAWSUITS IN THE STATE BUILDERS' GROUPS AND THEIR INSURERS HAVE JOINED THE DEVELOPER IN THE CASE DEAN HOMES OF BEVERLY HILLS INC IN SEEKING A CALIFORNIA SUPREME COURT REVIEW OF THE DECISION IN THE CASE DECIDED IN LATE SEPTEMBER A COOWNER OF A HOUSE THAT BECAME WATERLOGGED BECAUSE OF AN ALLEGEDLY DEFECTIVE FOUNDATION WAS AWARDED 50000 FOR EMOTIONAL DISTRESS CLAIMS FOR REPAIR COSTS IN SUCH CASES ARE STANDARD OF COURSE BUT ALLOWING MONETARY DAMAGES FOR EMOTIONAL HARM SHARPLY RAISES THE STAKES WHENEVER FAULTY CONSTRUCTION IS ALLEGED IN THIS INSTANCE THE PLAINTIFF CLAIMED THAT THE HOUSE WAS SUPPOSED TO BE HER FAMILY'S DREAM HOME BUT INSTEAD WAS ALWAYS WET AND MUSTY SMELLING AS A RESULT SHE SAID FOR THE SEVEN YEARS THAT THE PROBLEM PERSISTED SHE WAS TOO EMBARRASSED TO ENTERTAIN GUESTS STANDARDS FOR BRINGING EMOTIONALDISTRESS CLAIMS VARY FROM STATE TO STATE BUT SUCH ALLEGATIONS FREQUENTLY ARISE IN CONNECTION WITH PHYSICAL INJURIES AND IN INVASIONOFPRIVACY AND WRONGFULTERMINATION CASES THE RECENT DECISION COULD BE APPLIED IF COURTS CHOOSE TO DO SO IN THE ROUGHLY TWO DOZEN STATES THAT ALLOW SOCALLED STRICTLIABILITY CLAIMS IN CONSTRUCTION CASES SAID SCOTT B GREENE AN ATTORNEY WITH CHICAGO LAW FIRM POPE & JOHN UNDER STRICT LIABILITY DEVELOPERS ARE HELD AUTOMATICALLY LIABLE IF A HOME IS SHOWN TO BE DEFECTIVE EVEN IF THERE IS NO PROOF OF ACTUAL NEGLIGENCE IT REALLY OPENS THE CHECKBOOK I THINK THE CASE SOUNDS A VERY LOUD ALARM TO THE CONSTRUCTION INDUSTRY MR GREENE SAID NOW ON THE OTHER HAND FOR BUYERS IT'S WONDERFUL THE CALIFORNIA COURT AFFIRMED A TRIAL COURT'S HOLDING THE PURCHASE OF A HOME ISN'T ONLY THE LARGEST INVESTMENT MOST PEOPLE MAKE IN THEIR LIFETIME IT IS ALSO A HIGHLY PERSONAL CHOICE CONCERNING HOW AND WHERE ONE LIVES HIS OR HER LIFE THE APPEALS COURT SAID GENERALLY NO OTHER MATERIAL ACQUISITION IS OF EQUIVALENT PERSONAL IMPORTANCE UNDER THE CIRCUMSTANCES THE COURT SAID CONTRACTORS SHOULD BE ABLE TO FORESEE THAT DEFECTIVE CONSTRUCTION MIGHT LEAD NOT ONLY TO ECONOMIC LOSS BUT TO EMOTIONAL HARM THEREFORE THE COURT SAID IT IS FAIR TO ASSESS SUCH DAMAGES WHEN THEY DO OCCUR DEVELOPERS AND THEIR ATTORNEYS ARE WARNING THAT CERTAIN DWELLINGS CONDOMINIUMS FOR INSTANCE IN WHICH THE MARGIN OF PROFIT IS LOW TO BEGIN WITH WON'T BE FEASIBLE TO BUILD IF THE RULING STANDS IT HAS THEM EXTREMELY CONCERNED ABOUT HOW TO QUANTIFY AND HOW TO GO ABOUT DECIDING WHETHER TO DO A PROJECT SAID JOHN D ZEMANEK A LOS ANGELES ATTORNEY WHO REPRESENTED DEAN HOMES ON TOP OF ALL THE RISKS THE DEVELOPER HAS TO SOMEHOW TAKE THIS IMPONDERABLE INTO ACCOUNT ALREADY THE CASE HAS LED TO A 100000 EMOTIONALDISTRESS AWARD BY A JURY IN MARTINEZ CALIF FOR THE OWNER OF A HOUSE THAT SHIFTED BECAUSE OF STRUCTURAL DEFECTS THE HOMEOWNER CLAIMED THE HOUSE BECAME A MONEY PIT THAT DRAINED HIS RESOURCES AND FORCED HIM TO BORROW MONEY FROM FRIENDS HE ALSO WON A 300000 ECONOMICDAMAGES AWARD AGAINST THE BUILDER THE KEY IS YOU'RE GETTING THIS EMOTIONALDISTRESS CLAIM BEFORE THE JURY AS A RESULT OF THE APPEALSCOURT RULING SAID JEFFREY CEREGHINO AN ALAMO CALIF ATTORNEY FOR THE PLAINTIFF AMY GLAD GENERAL COUNSEL FOR THE BUILDING INDUSTRY ASSOCIATION OF SOUTHERN CALIFORNIA INC IN DIAMOND BAR NOTED THAT THE DECISION EXACERBATES THE PROBLEMS OF AN INDUSTRY THAT IS ALREADY TAKING A BEATING BECAUSE OF THE BAD ECONOMY THERE ARE DEFINITELY CASES NOW WHERE PEOPLE ARE ADDING EMOTIONALDISTRESS CLAIMS TO LAWSUITS IN PROGRESS SHE SAID WE HAVEN'T EVEN ATTEMPTED TO ESTIMATE THE AMOUNT OF DOLLARS THAT THAT COULD BE FEDERAL JUDGE STEPHEN V WILSON SAID HE IS INCLINED TO SENTENCE FORMER HIGHFLYING THRIFT OPERATOR CHARLES W KNAPP TO 63 TO 78 MONTHS IN PRISON FOR LOAN FRAUD THE JUDGE SAID DURING A SENTENCING HEARING YESTERDAY IN LOS ANGELES THAT HE WILL DELAY HIS FINAL RULING UNTIL DEC 14 THAT WILL GIVE MR KNAPP AND HIS CODEFENDANTS TIME TO RESPOND TO GOVERNMENT CLAIMS REGARDING THE AMOUNT OF LOSS INCURRED BY WESTERN SAVINGS & LOAN ASSOCIATION BASED IN PHOENIX AS A RESULT OF A FRAUDULENT 15 MILLION LOAN THE THRIFT MADE TO MR KNAPP'S BUSINESSES ANTHONY C SARNO AND JOSEPH V NASH RESPECTIVELY MR KNAPP'S FORMER FINANCIAL ADVISER AND ACCOUNTANT ARE LIKELY TO BE SENTENCED TO 51 TO 63 MONTHS IN PRISON ON DEC 14 JUDGE WILSON SAID THE JUDGE SUMMARILY DISMISSED A GROUP OF POSTTRIAL MOTIONS BY DEFENSE LAWYERS FOR MESSRS KNAPP AND SARNO HOWEVER THE JUDGE WAS VISIBLY SHAKEN BY ARGUMENTS MADE WITHOUT THE ASSISTANCE OF COUNSEL BY MR NASH WHO IS SERVING AN 11YEAR FEDERAL PRISON SENTENCE FOR CONVICTIONS ON 15 UNRELATED COUNTS OF MAKING FALSE STATEMENTS AND DEFRAUDING FOUR BANKS OF 900000 IN ESSENCE MR NASH CLAIMS HIS SIXTH AMENDMENT RIGHT TO COUNSEL WAS VIOLATED BY VIRTUE OF HIS SEVERELY LIMITED ACCESS TO THE PRISON LAW LIBRARY JUDGE WILSON SCOLDED GOVERNMENT LAWYERS FROM THE BENCH FOR NOT TAKING THE MOTION SERIOUSLY AND INSTRUCTED THEM TO DO A BANGUP JOB IN COURT PAPERS DUE DEC 7 BRIEFING THE MATTER IF HE SUCCEEDS MR NASH COULD GET A NEW TRIAL IN THE WESTERN SAVINGS LOAN FRAUD CASE NEW JERSEY DEMOCRATS WON PERMISSION FROM A FEDERAL JUDGE TO QUESTION EDWARD J ROLLINS FORMER CAMPAIGN MANAGER FOR GOVELECT CHRISTINE TODD WHITMAN TO DETERMINE IF ANY LAWS WERE BROKEN IN HER ELECTION VICTORY AGAINST GOV JIM FLORIO EARLIER THIS MONTH US DISTRICT JUDGE DICKINSON R DEBEVOISE IN NEWARK ALSO GAVE STATE DEMOCRATS PERMISSION TO TAKE DEPOSITIONS FROM GOVELECT WHITMAN'S BROTHER WEBSTER TODD JR AND SPECIAL COUNSEL FOR THE NEW JERSEY STATE REPUBLICAN COMMITTEE JOHN CARBONE THE DEMOCRATIC NATIONAL AND STATE COMMITTEES SOUGHT THE ORDERS AFTER MR ROLLINS DISCLOSED LAST WEEK THAT THE CAMPAIGN FUNNELED 500000 TO BLACK MINISTERS AND DEMOCRATIC ORGANIZERS IN URBAN DEMOCRATIC STRONGHOLDS IN NEW JERSEY TO SUPPRESS THE BLACK VOTE GOVELECT WHITMAN STRONGLY DENIED THE PAYMENTS WERE MADE AND MR ROLLINS THE NEXT DAY DISAVOWED HIS COMMENTS WITHOUT FULLY EXPLAINING THEM IN FEDERAL COURT IN NEWARK YESTERDAY LAWYERS FOR THE REPUBLICAN STATE COMMITTEE AND THE WHITMAN CAMPAIGN INITIALLY OPPOSED THE REQUEST LAST WEEK THE US ATTORNEY IN NEWARK THE FEDERAL BUREAU OF INVESTIGATION AND STATE OFFICIALS LAUNCHED CRIMINAL INVESTIGATIONS AND LAWYERS FOR THE WHITMAN CAMPAIGN AND THE STATE REPUBLICANS ARGUED YESTERDAY THAT THOSE SHOULD PROCEED FIRST AND THAT THE DEMOCRATS SHOULD AWAIT THE RESULTS BUT JUDGE DEBEVOISE REJECTED THE REPUBLICANS' ARGUMENT POINTING OUT THE CRIMINAL PROBE WAS FOCUSING ON POSSIBLE FELONIES WHILE THE CIVIL SUITS ALLEGED VIOLATIONS OF THE VOTING RIGHTS ACT AND SEVERAL CONSTITUTIONAL PROVISIONS WE CAN'T HAVE LINGERING DOUBTS ON A MATTER AS IMPORTANT AS THIS SAID THE JUDGE STATE DEMOCRATS ARE SEEKING A COURT ORDER INVALIDATING THE ELECTION AND PROVIDING FOR A NEW ONE MRS WHITMAN BEAT GOV FLORIO BY LESS THAN 30000 VOTES OUT OF ABOUT 25 MILLION CAST WITH VOTES FOR GOV FLORIO IN URBAN AREAS ABOUT 20000 FEWER THAN WHEN HE RAN IN 1989 MR ROLLINS IS EXPECTED TO BE QUESTIONED UNDER OATH LATER THIS WEEK MR TODD WHO DIRECTED HIS SISTER'S CAMPAIGN BEFORE MR ROLLINS REPLACED HIM LAST WEEK MADE A REFERENCE TO VOTER SUPPRESSION AT A SYMPOSIUM HE ATTENDED HE IS EXPECTED TO BE QUESTIONED NEXT WEEK ALONG WITH MR CARBONE FEDERAL PROSECUTORS CHARGED A CHICAGO ATTORNEY WITH A 14 MILLION FRAUD AGAINST THE FAMILIES AND ESTATES OF CHILDREN INJURED OR KILLED BY THE SIDE EFFECTS OF VACCINES ANTHONY M COLANTONI 41 YEARS OLD WAS CHARGED IN A CRIMINAL INFORMATION FILED BY CHICAGO US ATTORNEY JAMES B BURNS HIS OFFICE HAS WORKED ON THE CASE WITH INVESTIGATORS FROM THE INSPECTOR GENERAL'S OFFICE OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES MR COLANTONI IS CHARGED WITH DEFRAUDING CLIENTS WHOSE CHILDREN WERE ENTITLED TO PAYMENTS FROM THE FEDERAL VACCINE INJURY COMPENSATION PROGRAM A FUND TO HELP VICTIMS OF SIDE EFFECTS OF STANDARD VACCINES AGAINST SUCH ILLNESSES AS DIPHTHERIA TETANUS MEASLES RUBELLA AND PERTUSSIS FEDERAL AUTHORITIES SAID MR COLANTONI A LARGE PRACTITIONER IN CASES OF VACCINERELATED INJURY RECEIVED MORE THAN 15 MILLION IN COMPENSATION CHECKS FROM THE GOVERNMENT FUND BUT DISBURSED ONLY 114000 TO THE CLIENTS HE COULDN'T BE REACHED FOR COMMENT OFFICIALS SAID THE INSPECTOR GENERAL'S OFFICE CONTINUES TO INVESTIGATE OTHER CASES OF ALLEGED FRAUD RELATED TO THE VACCINE COMPENSATION PROGRAM BENJAMIN A HOLDEN AND MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9311160073 931116 BUSINESS BRIEF TRAVELERS CORP FIRM SELLS OFFICE BUILDINGS APARTMENT COMPLEX TO ZELL TRAVELERS CORP SAID IT SOLD 10 OFFICE BUILDINGS AND AN APARTMENT COMPLEX TO CHICAGO INVESTOR SAM ZELL FOR 256 MILLION MR ZELL AN EXPERIENCED INVESTOR IN DISTRESSED PROPERTY BOUGHT THE OFFICE BUILDINGS LOCATED IN THE SOUTH AND THE SOUTHWEST FOR 239 MILLION ON BEHALF OF A REAL ESTATE INVESTMENT FUND HE RUNS WITH MERRILL LYNCH & CO HE BOUGHT THE TEXAS APARTMENT BUILDING FOR 17 MILLION FOR CHICAGOBASED EQUITY RESIDENTIAL PROPERTIES TRUST AN APARTMENT REAL ESTATE INVESTMENT TRUST HE TOOK PUBLIC IN AUGUST TRAVELERS OF HARTFORD CONN WHICH WAS KNOWN TO BE NEGOTIATING WITH MR ZELL DIDN'T DISCLOSE THE ORIGINAL VALUE OF THE PROPERTIES OR WHETHER THE INSURANCE COMPANY WOULD BOOK A LOSS ON THE SALE 9311160072 931116 MARKETING BRIEF INTERNATIONAL FAMILY ENTERTAINMENT THIRDQUARTER NET FELL 25 AS FIRM'S REVENUE DOUBLED INTERNATIONAL FAMILY ENTERTAINMENT INC VIRGINIA BEACH VA SAID THIRDQUARTER NET INCOME FELL 25 REFLECTING THE COSTS OF LAUNCHING NEW CABLE CHANNELS WHILE REVENUE DOUBLED THE COMPANY SAID THIRDQUARTER NET DROPPED TO 4 MILLION OR 11 CENTS A SHARE FROM 5 MILLION OR 17 CENTS A SHARE INTERNATIONAL FAMILY ENTERTAINMENT ATTRIBUTED THE EARNINGS DECLINE TO THE EXPENSES OF STARTING A NEW CABLE NETWORK IN THE US A NEW PROGRAMMING BLOCK ON THE FAMILY CHANNEL AND A NEW INTERNATIONAL CABLE NETWORK IN BRITAIN THE FAMILY CHANNEL REVENUE INCREASED TO 644 MILLION FROM 321 MILLION THE COMPANY SAID REVENUE REFLECTED THE GROWTH IN THE FAMILY CHANNEL AND THE ACQUISITION OF TVS ENTERTAINMENT PLC THE PARENT OF MTM ENTERTAINMENT INC LAST JANUARY THE THIRD QUARTER IS SEASONALLY THE STRONGEST FOR MTM AS PROGRAMMING BECOMES AVAILABLE FOR SALE TO BROADCAST AND CABLE NETWORKS 9311160071 931116 BUSINESS BRIEF TOYS 'R' US INC FISCAL THIRDQUARTER PROFIT ROSE 19 ON 8 SALES JUMP TOYS R US INC AIDED BY ITS APPAREL OUTLETS REPORTED A 19 GAIN IN NET INCOME AFTER A CHARGE FOR RETROACTIVE TAX INCREASES IN ITS THIRD QUARTER NET AT THE PARAMUS NJ TOY RETAILER WAS 375 MILLION OR 13 CENTS A SHARE IN THE QUARTER ENDED OCT 30 UP FROM 368 MILLION OR 12 CENTS A SHARE A YEAR AGO SALES FOR THE COMPANY WHOSE GROWTH PLANS RELY ON FOREIGN MARKETS AND NEW TYPES OF CHILDRENS' STORES GREW 8 TO 145 BILLION TOYS R US SAID IN A NEWS RELEASE THAT COMPARABLESTORE SALES WERE UP SLIGHTLY IN ITS US TOY OUTLETS FELL IN GERMANY AND ROSE IN THE REST OF EUROPE AND CANADA HOWEVER THE COMPARISONS IN FOREIGN MARKETS WERE IN LOCAL CURRENCY IN DOLLAR TERMS TOYS R US CONFIRMED THAT IT TOLD ANALYSTS YESTERDAY THAT COMPARABLESTORE SALES DECLINED IN EUROPE THE COMPANY SAID IT PLANNED TO OPEN 110 TO 115 NEW TOY STORES AND 10 MORE KIDS R US STORES NEXT YEAR 9311160070 931116 BUSINESS WORLD SETTLING PROCESS IN THE SKY BY TIM W FERGUSON MAYBE IT'S THE ENDGAME OF AIRLINE DEREGULATION OR MAYBE THAT STORY HAS NO END THIS IS A PIVOTAL PERIOD IN ANY CASE FOR THE TWO LARGEST US CARRIERS AMERICAN AND UNITED AS THEY TRY TO POSITION THEMSELVES FOR THE NEXT LAST ROUND OF THE SORTINGOUT PROCESS AMR'S AMERICAN IS LOOKING AT A STRIKE BY FLIGHT ATTENDANTS ON THURSDAY WHILE UNITED'S PARENT UAL HAS BEGUN AFTER A BREAKDOWN IN NEGOTIATIONS A SELLOFF OF SOME SUPPORT OPERATIONS MANNED BY UNION LABOR NEITHER COMPANY CAN BE SURE THAT ITS CUSTOMERS AND INVESTORS WON'T ENCOUNTER BUMPS IN THE SEASON AHEAD FOR 15 YEARS THE NATION'S CARRIERS HAVE HAD TO ADJUST AS CONSUMERS GOT THE UPPER HAND AND AS THE OVERALL ECONOMY GAINED AND LOST ALTITUDE OF LATE THE MAJORS HAVE BEGUN TO EKE OUT PROFITS AGAIN AFTER A FEW HORRENDOUS YEARS YET AT THE SAME TIME UPSTARTS LED BY SOUTHWEST AIRLINES HAVE CARVED OUT SHORTHAUL MARKETS BY OFFERING SERVICE AND PRICES THAT APPEAL BOTH TO BUSINESS PEOPLE AND TO THE MARGINAL TRAVELERS WHO MAKE FULL PLANES POSSIBLE SO THE MAJORS ARE IN A STRATEGIC RETREAT THAT MEANS THEY AREN'T GROWING AS THEY DID IN THE MID1980S WHEN THEY BUILT UP THE HUBANDSPOKE ROUTE NETWORKS ALTHOUGH THOSE REQUIRED MORE PERSONNELEMPLOYMENT ROSE NEARLY 50 BETWEEN 1983 AND 1990 THE FINANCIAL IMPACT WAS CUSHIONED IN TWO RESPECTS FIRST PRODUCTIVITY MEASURED IN REVENUE TON MILES PER EMPLOYEE GAINED BY ABOUT A THIRD FROM 198188 AS RESOURCES WERE MORE FULLY UTILIZED AND SECOND NEW HIRES MOSTLY STARTED AT LOW PAY HOLDING DOWN AVERAGE LABOR COSTS THE NOMINAL RISE IN MEAN COMPENSATION AT THE BIGGER CARRIERS DURING THE 1980S WASN'T MUCH CONSIDERING INFLATION BUT WITHOUT AS MANY ENTRYLEVEL SLOTS ITS JUMPED 17 IN THE '90S ACCORDING TO THE INDUSTRY TRADE GROUP SEE ACCOMPANYING CHART WSJ NOV 16 1993 AS IN THE REST OF THE ECONOMY BENEFITS ARE EATING UP MOST OF THE GAIN THEY NOW ACCOUNT FOR 223 OF ALL AIRLINE LABOR COSTS VS 184 IN 1980 SO THE CREWS DON'T FEEL MUCH BETTER OFF BUT THE CARRIERS HURT JUST THE SAME ONE PHENOMENON THAT MAY BE CONTRIBUTING TO THE COST PROBLEM AT MATURE LINES IS THAT FLIGHT ATTENDANTS ARE STAYING ON THE JOB LONGER AND THUS ADVANCING UP THE PAY SCALE THROUGH THEIR 14TH YEAR AT MOST CARRIERS AND AS HIGH AS YEAR 19 AT DELTA AIR LINES BUT NOT PRODUCING MORE AVERAGE TENURE STATISTICS CAN MASK THIS IN THE CASE OF THOSE CARRIERS THAT HIRED LOTS OF JUNIOR PERSONNEL IN THE '80S BUT WHEN GROWTH STOPS AS IT DID SOME TIME AGO AT TWA FOR EXAMPLE THE GRAY SETS IN FAST JUST AS THEIR TRADITIONAL COMPETITORS HAVE GOTTEN OUT OF THIS PAY AND PRODUCTIVITY JAM THROUGH BANKRUPTCY FILINGS OR THE THREAT OF THEM OR SIMPLY GONE BUST AMERICAN AND UNITED NOW MUST COME DIRECTLY UP AGAINST THE UNIONS' RESISTANCE AS ORGANIZED LABOR NOTES MANAGEMENT HAS ITSELF TO BLAME FOR MISTAKEN EXPANSION DECISIONS THROUGH MUCH OF THE 1980S THAT CREATED EXCESS CAPACITY BUT THEN EVERYBODY LIKED THE SEXY FOREIGN ROUTES MANAGEMENTS WEREN'T LET OFF THE HOOK WHEN A COMMISSION CREATED BY PRESIDENT CLINTON AT THE BEHEST OF THE INDUSTRY CAME BACK OFFERING NO REPRIEVE FROM THE INTERNAL DOGFIGHT IT DID ASK FOR RELIEF FROM GOVERNMENTIMPOSED COSTS ON ALL AIRLINES WHICH HAS YET TO COME AMERICAN NOW SEEKS TO GAIN A BREAK ON PAYROLL EXPENSES BY IMPOSING A NEW CONTRACT ON ITS FLIGHT ATTENDANTS ALTHOUGH ITS PAY RATES HAVE BEEN LOW AMONG THE MAJORS AND THE CONTRACT IN FACT GRANTS WHAT THE AIRLINE CALLS A 35 AVERAGE INCREASE OVER FOUR YEARS OTHER FACTORS VEX THE CARRIER SO AMERICAN WANTS TO REDUCE STAFFING REQUIREMENTS ON SOME FLIGHTS DEPENDING ON PASSENGER LOAD IT ALSO SOUGHT BUT HASN'T YET IMPLEMENTED CHANGES IN VACATION AND OTHER SCHEDULING PRACTICES THAT ARE ESPECIALLY TOUCHY MATTERS AS THE PROLONGED DISPUTE AT ALASKA AIRLINES HAS DEMONSTRATED CONTRACT SKIRMISHES WITH THE ATTENDANTS CAN BE UNPLEASANT FOR AMERICAN WHICH APPARENTLY IS READY TO REPLACE STRIKERS AT LEAST TEMPORARILY ANY WALKOUT WILL GET INFINITELY MORE DIFFICULT IF THE PILOTS JOIN IN BUT APART FROM SAFETY MINIMUMS THE MANNING ISSUES FOR AMERICA'S AIRLINES MUST NOW COME DOWN TO WHAT KIND OF SERVICE PASSENGERS DEMAND AS OF DEREGULATION TO DATE MOST OF THEM CHOOSE BOOKINGS ON PRICE PRIMARILY IN THIS KIND OF WORLD IT IS NO SURPRISE THAT AMONG THE CHANGES UNITED IS SEEKING IS THE ABILITY TO FLY A NOFRILLS UNIT TO BATTLE THE SOUTHWESTS OF THE NATION CONTINENTAL HAS ALREADY TAKEN THAT ROUTE WHAT ISN'T RESOLVED EVEN NOW IS THE ROLE BALKY LABOR CAN HAVE IN AN INDUSTRY THAT NOW MUST BE ABLE TO TURN LIKE A PROP PLANE INSTEAD OF A 747 THE MATTER WON'T BE SETTLED DURING THESE HECTIC HOLIDAYS AHEAD AND IN THE SHORT RUN SOME TRAVELERS MAY BE SLIGHTED BUT IN THE END WE SHOULD GET WHAT WE'LL PAY FOR 9311160069 931116 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY STEPPED UP LINKS TO EASTERN EUROPE WITH A PLEDGE OF 1707 MILLION TO BUILD ROADS IN THE 12NATION TRADE BLOC'S EASTERN FRONTIER THE ROADBUILDING MONEY WAS TRANSFERRED FROM OTHER PROGRAMS ALREADY BUDGETED FOR EC SPENDING ON EASTERN EUROPE WHICH HAS BEEN CLAMORING FOR INCREASED TRADE AND OTHER ATTENTION SINCE THE EAST BLOC CRUMBLED SQUASHING FINANCIAL SUPPORT AND MARKETS FOR PRODUCTS EC MINISTERS ALSO AGREED TO HELP RECESSIONSMACKED SMALL AND MEDIUMSIZED ENTERPRISES BY APPROVING 518 MILLION IN LOANS AT REDUCED INTEREST RATES THE EC COMMISSION RECOMMENDED CREATING 15 MILLION JOBS TO HALVE UNEMPLOYMENT BY THE YEAR 2000 BY MODERATING WAGES REDUCING EMPLOYERS' BENEFITS COSTS AND ALLOWING MOREFLEXIBLE WORKING HOURS THE EC JOBLESS RATE NOW 106 COULD GROW TO 112 NEXT YEAR AND REMAIN STUBBORNLY ABOVE 10 THROUGH 1997 EVEN IF ECONOMIES PICK UP SOON TRADE UNIONS IN BOLIVIA BEGAN A NATIONAL STRIKE TO PROTEST PLANS TO ELIMINATE 10000 OR 45 OF 220000 GOVERNMENT JOBS THE WALKOUT IS THE WORST CONFLICT BETWEEN WORKERS AND PRESIDENT GONZALO SANCHEZ DE LOZADA'S CENTRIST GOVERNMENT SINCE IT TOOK OFFICE IN AUGUST FOUR PREVIOUS PROTEST ACTIONS FAILED TO PARALYZE THE COUNTRY THIS TIME MINE RAILWAY AND HEALTH WORKERS AND TEACHERS JOINED THE STRIKE BUT OTHER SECTORS WERE OPERATING SUCH AS TRANSPORTATION RETAILING BANKING AND OTHER PRIVATE INDUSTRIES THE GOVERNMENT ALSO PLANS TO CUT AN ADDITIONAL 70000 STATE JOBS GRADUALLY OVER THE NEXT FEW YEARS BELGIAN UNIONS ANGERED BY PROPOSED GOVERNMENT CUTBACKS STAGED A ONEDAY STRIKE THAT HALTED BUSES AND SUBWAYS CAUSING RUSHHOUR TRAFFIC JAMS IN CITIES AND CLOSED FACTORIES AND BANKS THE PROTEST CAME AS BELGIUM'S FOURPARTY COALITION GOVERNMENT HELD A FOURTH DAY OF TALKS ON AUSTERITY PLANS TO CUT SOCIALSECURITY SPENDING AND REVIVE A FLAGGING ECONOMY PRIME MINISTER JEANLUC DEHAENE IS TRYING TO CUT HEALTH COSTS UNEMPLOYMENT PAYMENTS FAMILY ALLOWANCES AND PENSIONS FREEZE PAY INCREASES FOR THREE YEARS AND LIMIT WORKING HOURS AND NEW TAXES CHINA TIGHTENING ITS REGULATION OF STOCK MARKETS IS USING BANK SAVINGS TO DETERMINE WHO MAY BUY SHARES THE OFFICIAL CHINA DAILY SAID PREVIOUSLY SHARES WERE SOLD BY LOTTERY WHICH LED PEOPLE TO BUY AS MANY APPLICATIONS AS POSSIBLE AND RESULTED IN CORRUPTION AND RIOTS LOTTERIES WILL STILL BE USED TO ALLOT SHARES BUT TO DETERMINE ELIGIBILITY THE MARKETS WILL USE ACCOUNT NUMBERS OF FIXEDTERM SAVINGS THE REPORT DIDN'T SPECIFY ANY MINIMUM REQUIREMENT CHINA SAID THIS SYSTEM RECENTLY USED FOR TWO NEW LISTINGS WOULD IMPROVE BOURSES' STABILITY AND HELP INCREASE BANK SAVINGS FRANCE'S UNPROFITABLE CABLETELEVISION INDUSTRY APPEALED FOR GOVERNMENT HELP INCLUDING A DEVELOPMENT STRATEGY AND FINANCIAL AND REGULATORY CHANGES THE OPERATORS WANT A TAX DEDUCTION FOR PROPERTY OWNERS' CABLECONNECTION COSTS AND GUARANTEED LOANS TO HELP FINANCE CABLE EXPANSION THEY SAID ANY RESULTING TAX LOSSES WOULD BE OFFSET BY TAX REVENUES FROM MORE CABLE SUBSCRIPTIONS AND NEW CABLESECTOR JOBS FEWER THAN A MILLION OF THE FIVE MILLION CABLEREADY RESIDENCES HAVE SUBSCRIBED BECAUSE OF UNATTRACTIVE PRICING AND LIMITED PROGRAMMING AND COMPETITION FROM SATELLITEDELIVERY COMPANIES AN ACCORD LIBERALIZING TRADE BETWEEN POLAND AND THE EUROPEAN FREE TRADE ASSOCIATION TOOK EFFECT THOUGH IT NEEDS RATIFICATION BY POLISH LAWMAKERS THE DECEMBER 1992 PACT ABOLISHES MOST TARIFFS FOR POLISH PRODUCTS EXCEPTIONS INCLUDE STEEL AND TEXTILES SOLD TO THE EFTA MEMBERS AUSTRIA FINLAND ICELAND LIECHTENSTEIN NORWAY SWEDEN AND SWITZERLAND POLAND WILL BEGIN ELIMINATING ITS TARIFFS FOR EFTA SHIPMENTS IN 1995 BY 2001 ALL POLISHEFTA TRADE BARRIERS ARE TO BE DROPPED SWITZERLAND PLAYS AN IMPORTANT ROLE AS A FINANCIAL AND LOGISTICAL CENTER FOR ORGANIZED CRIME A JUSTICE MINISTRY REPORT SAID THOUGH IT DIDN'T FIND ANY SYSTEMATIC INFILTRATION OF BUSINESS OR GOVERNMENT THE REPORT PREPARED FOR THE AGENCY BY THE UNIVERSITY OF BASEL IN THE WAKE OF A CASE INVOLVING LAUNDERING OF DRUG MONEY FOUND ONLY SPORADIC EVIDENCE OF MAFIA ACTIVITY IN SWITZERLAND BUT THE COUNTRY RANKED HIGH AMONG THOSE USED FOR LAUNDERING MONEY BECAUSE OF ITS CENTRAL EUROPEAN LOCATION HIGHLY DEVELOPED AND DISCREET FINANCIAL INSTITUTIONS MODERN TELECOMMUNICATIONS AND STABLE POLITICAL SOCIAL AND LEGAL SYSTEMS THE REPORT SAID SWITZERLAND NEEDS MORE INFORMATION ON USES OF SOPHISTICATED FINANCIAL ARRANGEMENTS FOR ORGANIZED CRIMINAL ACTIVITY SUCH AS SOCALLED PARABANKING BUSINESSES WHICH ARE LESS REGULATED THAN BANKS THE FORMER SOVIET REPUBLIC OF UZBEKISTAN WILL MAKE ITS SOM COUPON LEGAL TENDER STARTING THURSDAY THE CURRENCY WILL BE VALUED EQUALLY TO AND CIRCULATE ALONGSIDE THE RUSSIAN RUBLE WHICH MAY BE PHASED OUT BY YEAR END GERMANY IN THE NEXT TWO YEARS INTENDS TO INVEST 68 BILLION ON INFRASTRUCTURE IN MODERNIZING ITS FORMERLY COMMUNIST EASTERN REGION WHERE NEWBUSINESS REGISTRATIONS IN THIS YEAR'S FIRST NINE MONTHS FELL 13 TO 144099 FROM A YEAR EARLIER AND BUSINESS CLOSURES INCLUDING TAKEOVERS INCREASED 1 TO 88659 9311160068 931116 BUSINESS BRIEF AMERICAN ELECTRIC POWER CO RESTATED 3RDQUARTER RESULTS SHOW 101 MILLION NET LOSS AMERICAN ELECTRIC POWER CO RESTATED ITS THIRDQUARTER RESULTS TO SHOW A NET LOSS OF 101 MILLION OR SIX CENTS A SHARE BECAUSE OF A COURT RULING THAT BARRED THE COMPANY FROM RECOVERING PLANTCONSTRUCTION COSTS THROUGH HIGHER RATES THE COMPANY BASED IN COLUMBUS OHIO ORIGINALLY REPORTED THIRDQUARTER NET INCOME OF 1344 MILLION OR 73 CENTS A SHARE IN THE YEAREARLIER PERIOD AMERICAN ELECTRIC POSTED PROFIT OF 1078 MILLION OR 58 CENTS A SHARE THE RESTATEMENT WAS ANTICIPATED IN THE WAKE OF THE OHIO SUPREME COURT'S NOV 3 RULING UPHOLDING A 1992 ORDER BY THE PUBLIC UTILITIES COMMISSION OF OHIO WHICH REQUIRED THE COMPANY'S COLUMBUS SOUTHERN POWER CO UNIT TO WRITE OFF ITS 165 MILLION INVESTMENT IN A NEW POWER PLANT THE COMPANY WANTED TO RECOVER THE AMOUNT THROUGH A RATE INCREASE AS A RESULT THE COMPANY SAID IT WAS FORCED TO TAKE A CHARGE OF 1445 MILLION AGAINST THIRDQUARTER EARNINGS 9311160067 931116 WHAT'S NEWS WORLDWIDE THE WHITE HOUSE SAID IT WILL BE ABLE TO GET THE VOTES OF JUST OVER 100 DEMOCRATS FOR THE TRADE PACT AND REPUBLICANS ARE EXPECTED TO PROVIDE 110 TO 120 PERHAPS ENOUGH FOR CLINTON TO REACH THE 218 HE NEEDS TOMORROW BUT AS THE ADMINISTRATION WAS TOUTING THE SUPPORT FROM SOME PREVIOUSLY UNDECIDED LAWMAKERS AFLCIO CHIEF KIRKLAND ASSAILED CLINTON FOR OFFERING TO HELP REPUBLICANS DEFEND THEMSELVES AGAINST ANY DEMOCRATIC OPPONENTS WHO ATTACK THEIR PRONAFTA VOTES SEEKING TO GET WHEATSTATE LAWMAKERS TO SUPPORT NAFTA THE WHITE HOUSE IS EXPECTED TO ANNOUNCE TODAY A PLAN TO THREATEN ACTION AGAINST IMPORTS OF DURUM WHEAT FROM CANADA ASPIN AND RABIN DISCUSSED A POTENTIAL 18 BILLION SALE OF ABOUT 20 F15 LONGRANGE FIGHTERS TO ISRAEL PENTAGON OFFICIALS SAID THE US DEFENSE SECRETARY HELD TALKS IN WASHINGTON WITH ISRAEL'S PRIME MINISTER SECRETARY OF STATE CHRISTOPHER MEANWHILE WILL GO TO THE MIDEAST NEXT MONTH TO MEDIATE DIFFERENCES OVER A PLOISRAELI ACCORD GUNMEN IN LEBANON ASSASSINATED A SENIOR AIDE TO PLO LEADER ARAFAT THE VICTIM MOUEEN SHABAITA WAS KILLED BY SUBMACHINEGUN FIRE AFTER A CAR CHASE THROUGH THE STREETS OF SIDON HE WAS ARAFAT'S TOP COMMANDER IN LEBANON AND AN OUTSPOKEN ADVOCATE OF THE PLOISRAELI PACT THE SUPREME COURT DECLINED FOR NOW TO STEP BACK INTO THE FIGHT OVER STATE ABORTION RESTRICTIONS THE JUSTICES IN A BRIEF ORDER WITHOUT DISSENTS REFUSED TO HEAR A CHALLENGE TO MISSISSIPPI'S LAW REQUIRING GIRLS WHO ARE UNDER THE AGE OF 18 TO GET THE CONSENT OF BOTH PARENTS OR A JUDGE PRIOR TO GETTING AN ABORTION NEW JERSEY DEMOCRATS WON A JUDGE'S PERMISSION TO QUESTION THE EXCAMPAIGN MANAGER FOR GOVELECT WHITMAN TO SEE IF LAWS WERE BROKEN IN HER ELECTION WIN THE EXMANAGER ROLLINS SAID LAST WEEK THAT THE CAMPAIGN GAVE MONEY TO BLACK MINISTERS AND DEMOCRATIC WORKERS TO SUPPRESS VOTES HE LATER DISAVOWED HIS COMMENTS ABOUT 4000 CROAT SOLDIERS BATTLED TO SEVER A KEY MUSLIMHELD SUPPLY ROAD IN ONE OF THE BIGGEST ATTACKS IN MONTHS IN CENTRAL BOSNIA MEANWHILE BOSNIA'S UN ENVOY SAID HIS GOVERNMENT WILL SUE BRITAIN IN THE WORLD COURT FOR VIOLATING A 1948 GENOCIDE CONVENTION BY OPPOSING THE LIFTING OF A UN ARMS EMBARGO AGAINST BOSNIA TUBERCULOSIS WILL KILL 30 MILLION PEOPLE OVER THE NEXT DECADE UNLESS MORE MONEY IS FOUND TO PREVENT ITS SPREAD THE WORLD HEALTH ORGANIZATION SAID THE UN HEALTH AGENCY WARNED THAT TB COULD BECOME EFFECTIVELY INCURABLE IF CONTROL EFFORTS AREN'T STEPPED UP BECAUSE DRUGRESISTANT STRAINS WOULD MULTIPLY IN POOR NATIONS MILITANT SEPARATISTS ENDED A MONTHLONG SIEGE AT A MUSLIM SHRINE IN KASHMIR AND SURRENDERED TO INDIAN FORCES POLICE SOURCES SAID SIXTYFIVE MILITANTS EMERGED FROM THE HAZRATBAL MOSQUE EARLY TODAY LEAVING BEHIND THEIR ROCKET LAUNCHERS ASSAULT RIFLES AND AMMUNITION SUPPLIES SEN NICKLES INTENDS TO UNVEIL ANOTHER HEALTHCARE PLAN THIS WEEK THE CENTERPIECE OF WHICH WILL BE TO PROVIDE ALL CITIZENS WITH TAX CREDITS TO HELP THEM AFFORD INSURANCE COVERAGE THE PROPOSAL WHICH THE OKLAHOMA REPUBLICAN PUT TOGETHER WITH FLORIDA REP STEARNS IS ONE OF A GROWING NUMBER OF ALTERNATIVES TO THE CLINTON HEALTH PLAN US CATHOLIC BISHOPS RALLIED AROUND A CHICAGO CARDINAL ACCUSED OF SEX ABUSE SOME 300 PRELATES GAVE CARDINAL JOSEPH BERNARDIN A STANDING OVATION AT THE START OF THEIR ANNUAL MEETING THE CARDINAL HAS BEEN SUED BY A PHILADELPHIA MAN WHO SAYS HE WAS SEXUALLY MOLESTED IN THE MID1970S BERNARDIN HAS DENIED THE CHARGE PRIME MINISTER HOSOKAWA FAILED TO REACH A COMPROMISE WITH A JAPANESE OPPOSITION LEADER TO ENSURE SMOOTH PASSAGE THROUGH PARLIAMENT OF POLITICAL REFORM LEGISLATION THE BREAKDOWN IN TALKS THREATENED HOSOKAWA'S PLEDGE TO ENACT THE MEASURES THIS YEAR THE PACKAGE INCLUDES A REVISED ELECTORAL MAP AND CAMPAIGN SPENDING CURBS THE INCIDENCE OF HOMELESSNESS APPEARS TO BE HIGHER THAN PRIOR GOVERNMENT ESTIMATES AND MORE IN LINE WITH WHAT ADVOCATES FOR THE HOMELESS HAVE CONTENDED TWO STUDIES SHOWED ONE STUDY FOUND THAT NEARLY 1 OF PHILADELPHIA'S POPULATION AND SLIGHTLY OVER 1 OF NEW YORK'S RESIDENTS SPENT AT LEAST ONE NIGHT IN A PUBLIC SHELTER LAST YEAR 9311160065 931116 LETTERS TO THE EDITOR IF DISNEY GOES TRENDY IT'LL BE A NIGHTMARE ON OCT 1 YOUR MARKETPLACE ARTICLE DISNEY'S DREAM IS THAT ITS NIGHTMARE WILL SCARE UP BIG BOXOFFICE BUSINESS SPECULATED THAT DISNEY NEEDS TO STEER AWAY FROM CLASSIC ANIMATION AND MOVE INTO A MARKET THAT ATTRACTS TEENAGERS AND YOUNG ADULTS THE FEAR ALSO IS THAT AMERICA MAY BE EXPERIENCING BURNOUT FROM DISNEY MOVIES DID DISNEY EXECUTIVES REALLY MAKE THIS STATEMENT OR IS THIS JUST ANOTHER OPINION FROM A WRITER DISTORTING THE TRUTH AND SPEAKING DERISIVELY ABOUT TRADITIONAL FAMILY VALUES HAVEN'T YOU HAD ENOUGH POT SHOTS AT TRADITIONAL VALUES AND THE SOCALLED CHANGING FAMILY OH I BELIEVE BURNOUT IS ABOUT TO OCCUR BUT TO THE CONTRARY OF YOUR OPINION BURNOUT HAS BEEN REACHED IN THE MAJORITY OF AMERICAN HOMES ALREADY FROM ALL THE SEX VIOLENCE PERVERSION AND BLOODSHED PUMPED INTO OUR LIVES THROUGH TELEVISION RADIO AND NEWSPAPERS DON'T YOU GET IT WE AS AMERICANS ARE PAYING A FINE PRICE TODAY AS A RESULT OF THIS CHANGING WORLD SOMETHING IS TERRIBLY WRONG THE GREAT SOCIAL EXPERIMENT OF THE LEFT HAS BEEN A DISASTER I SURE HOPE NIGHTMARE BEFORE CHRISTMAS IS A DISASTER IF WHAT YOUR ARTICLE STATES IS TRUE ABOUT DISNEY WANTING TO PROVE THAT IT CAN ATTRACT TRENDY KIDS DISNEY WILL QUICKLY LOSE THE SUPPORT AND RESPECT OF MANY AMERICAN FAMILIES WHO HAVE COUNTED ON ITS MOVIE PRODUCTIONS TO BRING GOOD WHOLESOME ENTERTAINMENT INTO OUR HOMES 9311160064 931116 NERVOUS NIKKEI AS JAPAN'S STOCKS SLIP FALL THREATENS TO BE A BURDEN ON ECONOMY DECLINE REFLECTING WORRIES ABOUT HOSOKAWA'S PLANS BEGINS TO HOBBLE BANKS THE SPECTER OF DEREGULATION BY QUENTIN HARDY AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO WHAT IS THE COST OF REMAKING JAPAN FOR STOCKMARKET INVESTORS IT IS MANY BILLIONS AND RISING SINCE OCT 26 THE NIKKEI STOCK INDEX HAS DROPPED 111 WIPING 245 BILLION OFF THE VALUE OF JAPANESE STOCKS AFTER BRIEFLY STABILIZING LAST WEEK THE NIKKEI SHED 41894 POINTS YESTERDAY TO CLOSE AT 1807461 IN TRADING THIS MORNING THE MARKET BOUNCED BACK SLIGHTLY RISING 15061 POINTS TO 1822522 AN ASSORTMENT OF WORRIES APPEARS RESPONSIBLE FOR THE DROP IN THE SHORT RUN POOR EARNINGS REPORTS PROFITTAKING BY INVESTORS WHO SEE BETTER OPPORTUNITIES IN BOOMING MARKETS ELSEWHERE AND A BOTCHED PRIVATIZATION OFFERING BY THE GOVERNMENT BUT THE STEEP FALL IS APPARENTLY BEING ACCELERATED BY LONGERTERM AND FARTHERREACHING INVESTOR CONCERNS UNCERTAINTY ABOUT THE FUTURE OF JAPAN'S GOVERNMENT AND WHAT IT WANTS TO DO WITH THE JAPANESE ECONOMY INVESTORS WORRY ABOUT WHAT WILL HAPPEN IF THE THREEMONTHOLD GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA SUCCEEDS WITH ITS POLITICAL AND ECONOMIC REFORM PLANS WHICH INCLUDE DEREGULATION AND WHAT POTENTIALLY COULD TURN INTO LIMITS ON GOVERNMENT SUPPORT OF THE STOCK MARKET YET PARADOXICALLY INVESTORS ALSO WORRY ABOUT WHAT WILL HAPPEN IF THE GOVERNMENT DOESN'T SUCCEED THERE IS CONCERN THAT THE HOSOKAWA GOVERNMENT COULD BECOME PARALYZED EVEN COLLAPSE IN A MAKEORBREAK BATTLE OVER POLITICAL REFORM STYMIED POLITICAL REFORM WOULD DRAG DOWN WITH IT THE NEW PRIME MINISTER'S PLANS TO SPUR THE BELEAGUERED ECONOMY SUCH AS A STIMULUS PACKAGE AND AN INCOMETAX CUT BUT IN JAPAN TODAY THE STOCK MARKET DOESN'T MERELY REFLECT PROBLEMS THE MARKET HAS NOW FALLEN SUFFICIENTLY THAT THE DECLINE ITSELF BECOMES A PROBLEM FOR THE ECONOMY THAT IS BECAUSE THE FALL IN STOCK PRICES IS BEGINNING TO CRIMP JAPANESE BANKS' ABILITY TO LEND TO BUSINESS ALL THIS HAPPENS AT AN IMPORTANT TIME FOR PRIME MINISTER HOSOKAWA HE IS PUSHING FOR A SHOWDOWN VOTE IN PARLIAMENT ON HIS POLITICALREFORM PLANS BEFORE HE GOES TO SEATTLE FRIDAY FOR A MEETING WITH PRESIDENT CLINTON AND OTHER LEADERS FROM AROUND ASIA MR HOSOKAWA'S REFORM BILLS ARE AIMED AT SIMPLIFYING JAPAN'S BYZANTINE ELECTORAL SYSTEM CURBING WIDESPREAD CORRUPTION AND MAKING JAPAN'S DEMOCRACY MORE FLEXIBLE THE SOLUTION TO A WHOLE RANGE OF ISSUES FACING THE JAPANESE ECONOMY HINGES ON THE PASSAGE OF POLITICAL REFORM SAYS TORU ICHIKAWA A TOP EXECUTIVE OF NIPPON YUSEN KK JAPAN'S LARGEST SHIPPING COMPANY IT WILL BE TERRIBLY DAMAGING IF IT DOESN'T PASS MR HOSOKAWA HELD A LASTDITCH SUMMIT WITH THE LEADER OF THE OPPOSITION EARLY THIS MORNING BUT THE TALKS FELL APART WITH NO COMPROMISE IN SIGHT A POLITICALREFORM VICTORY WOULD EMPOWER MR HOSOKAWA TO PURSUE HIS BROADER AGENDA OF ECONOMIC CHANGE THE TOKYO STOCK MARKET AND MAJOR SECTORS OF THE ECONOMY COULD BE HURT INITIALLY BY MEASURES TO ELIMINATE TRADITIONAL SUPPORT BY THE GOVERNMENT FOR MARKETS TRADERS SAY LAST WEEK'S TWODAY RESPITE IN THE NIKKEI'S FALL FOR INSTANCE COULD BE CREDITED TO THE MINISTRY OF FINANCE WHICH URGED TRUST BANKS AND INSURANCE COMPANIES TO BUY STOCKS IT WAS PUBLIC MONEY AT THE TRUST BANKS AND INSURERS SAYS SHUNICHI HARI A TRADER AT YAMAICHI SECURITIES CO THE GOVERNMENT DENIES PROPPING UP STOCK PRICES THE MARKET FEARS THAT GREATER COMPETITION UNDER THE REFORM MEASURES WHILE ULTIMATELY HOLDING OUT THE PROMISE OF BENEFITS WOULD FIRST TRANSLATE INTO LOWER CORPORATE PROFITS EARNINGS COULD BE SQUEEZED FURTHER BY THE RECENT RISE IN THE VALUE OF THE YEN VS THE DOLLAR WHICH HURTS JAPANESE EXPORTERS THE YEN CLOSED IN TOKYO TRADING YESTERDAY AT 10579 YEN TO THE DOLLAR ITS HIGHEST LEVEL IN A MONTH SHOULD STOCKS FALL FURTHER THE DROP COULD POSE LARGE CONSEQUENCES FOR JAPAN'S FINANCIAL SYSTEM JAPAN'S BANKS NEED HIGH SHARE PRICES BECAUSE THEY USE GAINS ON THEIR HOLDINGS TO WRITE DOWN THE ESTIMATED 284 BILLION IN BAD DEBT THEY AMASSED IN THE 1980S LOWER STOCK PRICES WOULD INTENSIFY THE BANKS' RELUCTANCE TO MAKE LOANS A MAJOR OBSTACLE TO STIMULATING THE ECONOMY MORGAN STANLEY FINANCIAL ANALYST BETSY DANIELS HAS BEEN SEEING ANXIOUS BANKERS IN TOKYO OVER THE PAST WEEK THEY FRET ABOUT THE MARKET AND SEEK HER VIEW OF WHERE THE BOTTOM LIES THEY FEEL LIKE THE RUG HAS BEEN PULLED OUT FROM UNDER THEM MS DANIELS SAYS MORE THAN ANY SECTOR OF THE ECONOMY THE STOCK MARKET HERE DEMONSTRATES THE HEAVY HAND OF BUREAUCRACY AND THE DIFFICULT CHOICE BETWEEN MAINTAINING GOVERNMENT SUPPORT OR PULLING THE PLUG FOR THE PAST 15 MONTHS THE MAIN SUPPORT FOR THE MARKET HAS BEEN GOVERNMENT BUYING OVER THREE TRILLION YEN 28 BILLION IN NEW GOVERNMENT PENSION FUNDS AND OTHER ASSETS HAVE BEEN INVESTED IN THE MARKET TAKE IT AWAY AND THE MARKET ACTS LIKE WILE E COYOTE WHEN HE RUNS OFF THE CLIFF A TERRORSTRICKEN MOMENT LOOKING INTO SPACE THEN STRAIGHT DOWN JUST THREE WEEKS AGO THE NIKKEI WAS AT 20309 A LEVEL THAT GAVE MANY INVESTORS A 20 RETURN FOR THE YEAR AND THAT GAVE BANKS PLENTY OF GAINS TO BALANCE THEIR BAD LOANS WITH SUCH A FIRM UNDERPINNING THE MARKET HAD BEEN DEFYING THE SAGGING ECONOMIC OUTLOOK AND STAYING ALOFT THEN CAME THE DISASTROUS PRIVATIZATION OF EAST JAPAN RAILWAY CO OR JR EAST THE STOCK SURGED 58 IN THE FIRST DAYS' TRADING LAST MONTH 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 TUMBLING AND PROBABLY FRIGHTENED MANY OF THE SMALL INVESTORS THE GOVERNMENT WAS HOPING TO LURE BACK TO THE MARKET THE LITTLE GUY HAD BEEN SCARED OUT OF THE MARKET THROUGHOUT THE LATE 1980S AND EARLY 1990S BY A SIMILAR PROBLEM THE BUNGLED PRIVATIZATION OF NIPPON TELEGRAPH & TELEPHONE AND LATER BY THE NIKKEI'S COLLAPSE SINCE THE JR EAST FIASCO THE MARKET HAS DIGESTED MORE BAD NEWS ABOUT DEPRESSED EARNINGS AS WELL AS THE BIGGEST BANKRUPTCY IN POSTWAR JAPAN THE 590BILLIONYEN 558 BILLION COLLAPSE OF CLOSELY HELD MURAMOTO CONSTRUCTION MORE TROUBLE APPEARS TO BE AHEAD NEXT MONTH PREDICTS TAKASHI OSHIO AN ECONOMIST AT JP MORGAN IN TOKYO THERE WILL BE A WEAK GDP NUMBER AND A NEGATIVE SURVEY OF BUSINESS SENTIMENT AS PROOF OF JUST HOW DISTORTED THE JAPANESE MARKET HAS BECOME SMALLTIME INVESTORS HURT BY THE PLUNGE ARE COMPLAINING NOT TO THEIR STOCKBROKERS BUT TO THE MINISTRY OF FINANCE I'VE BEEN GETTING LOTS OF CALLS FROM ORDINARY INVESTORS CRITICIZING THE FINANCE MINISTRY FOR NOT DOING ANYTHING SAYS A MINISTRY BUREAUCRAT MANY INVESTORS WHO ARE STILL LOYAL TO THE MARKET CITE THEIR FAITH IN THE GOVERNMENTNOT A BELIEF IN FUNDAMENTALS IF SHARE PRICES WOULD KEEP DECLINING BANKS WILL INCUR LOSSES SAYS YUKIHIKO OHKURA A 28YEAROLD TOKYO OFFICE WORKER MANY PEOPLE BELIEVE THE GOVERNMENT WOULD STEP IN WITH A BAILOUT IF NEEDED HOW LOW COULD THE NIKKEI GO SOME ANALYSTS TARGET 16000 TO 17000 AND EVEN IF THE MARKET LEVELS OFF IT IS NOW AT THE LOW END OF A RANGE RARELY LEFT IN THE PAST 20 MONTHS THERE MAY BE LITTLE UPSIDE YAMAICHI'S MR HARI SAYS RECESSIONRACKED AND CASHSTRAPPED JAPANESE COMPANIES ARE UNWINDING THEIR CROSSHOLDINGS PARTICULARLY BANK STOCKS THE BANKS ARE ACCEPTING THIS BECAUSE THE COMPANIES NEED THE MONEY JAPANESE COMPANIES HURT BY LOWER EARNINGS SOLD 376 TRILLION YEN WORTH OF STOCK BETWEEN JANUARY 1991 AND LAST SEPTEMBER BUT THERE ARE BENEFITS TO JAPAN FROM GOING THROUGH THE WRENCHING RESTRUCTURING OF STOCKMARKET LIBERALIZATION IF THERE IS A GOOD TRANSPARENT AND FAIR MARKET THERE WILL BE MORE BUYING FROM AMERICA AND EUROPE SAYS YOSHIO TERASAWA A FORMER EXECUTIVE FOR NOMURA SECURITIES CO AND NOW A MEMBER OF PARLIAMENT WITH MR HOSOKAWA'S JAPAN NEW PARTY IN RECENT MONTHS FOREIGNERS HAVE BEEN WARY OF PLAYING WHAT THEY PERCEIVE IS A RIGGED GAME THE IMMEDIATE PAIN OF A FREE MARKET ADDS MR TERASAWA WOULD SHOW THE BUREAUCRATS THAT ANY CONTROLLED MARKET IS NO GOOD STILL ECONOMIC REFORM GRATES ON MANY IN THE MARKETS JAPAN WAS WINNING AT A GAME OF RUGBY AND SUDDENLY THE REFEREES WANT TO CHANGE THE RULES TO AMERICAN FOOTBALL SAYS MASAHIKO TSUYUZAKI CHIEF TRADER AT TACHIBANA SECURITIES CO SUCH COMPLAINTS GET A HARSH RESPONSE FROM MANY OF MR HOSOKAWA'S AIDES THEY SAY JAPAN MUST RESTRUCTURE ITS ECONOMY AND UNDERGO SHORTTERM STRAIN FOR LONGTERM GAIN A GOVERNMENT ADVISORY PANEL APPOINTED BY MR HOSOKAWA ISSUED A REPORT LAST WEEK DECLARING THAT ECONOMIC REGULATIONS SHOULD BE ABOLISHED IN PRINCIPLE A RADICAL CONCEPT FOR A NATION THAT HAS THRIVED BY SUCCESSFUL GOVERNMENT MEDDLING IN THE MARKET THE REPORT CITED 500 REGULATIONS THAT SHOULD BE ELIMINATED RANGING FROM RESTRICTIONS IN AIRLINES TO CABLE TELEVISION TO RICE THERE MAY BE AN INCREASE IN UNEMPLOYMENT IF THE PLANS ARE ADOPTED SAYS ISAMU MIYAZAKI CHAIRMAN OF THE DAIWA INSTITUTE OF RESEARCH AND A MEMBER OF THE PANEL WHOSE GOAL IS TO MAKE THE ECONOMY MORE EFFICIENT AND MORE CONSUMERORIENTED BUT IF WE DO NOT DEREGULATE THE ECONOMY WILL REMAIN INEFFICIENT THE PAIN IN THE STOCK MARKET THAT WOULD FOLLOW FROM DEREGULATION WOULD MIRROR DEEPER AGONY THROUGHOUT CORPORATE JAPAN EVEN SOME PILLARS OF THE JAPANESE ESTABLISHMENT ARE NOW BEGINNING TO CONCEDE THAT THE AFTERSHOCKS OF REFORM COULD LEAD TO A FUNDAMENTAL REAPPRAISAL OF THE VALUE OF BEING PART OF JAPAN INC FOR INSTANCE NIKKEIREN A BIGBUSINESS LOBBYING GROUP SAYS SUCH JAPANESE INDUSTRIES AS FARMING AND SERVICES ARE ONLY HALF AS PRODUCTIVE AS AMERICA'S CATCHING UP IN PRODUCTIVITY COULD MEAN JAPAN WOULD HAVE 58 MILLION JOBLESS PEOPLE IN THE YEAR 2003 AN UNEMPLOYMENT RATE OF 86 HOLDING JOBLESSNESS AT CURRENT LEVELS OF 2 TO 3 WOULD REQUIRE SUCH STEPS AS JOB SHARING AND A BIG CUT IN WORKING HOURS DEREGULATION OF COURSE WOULD HAVE EVENTUAL ECONOMIC BENEFITS CURRENTLY SOME 10000 DIFFERENT REGULATIONS CONSTRAIN 50 OF THE JAPANESE ECONOMY ACCORDING TO A RECENT REPORT BY STOCKBROKERAGE BARCLAYS DE ZOETE WEDD RESEARCH JAPAN LTD TOTAL DEREGULATION BZW ESTIMATES COULD ULTIMATELY BOOST JAPAN'S GNP BY AT LEAST 10 BUT NONE OF THIS CAN HAPPEN UNTIL THE POLITICAL SITUATION BECOMES CLEARER IN THE MEANTIME STOCK TRADING IS LIKELY TO REMAIN VOLATILE STOCK TRADERS SAY A MAJOR REASON FOR THE NIKKEI'S SHARP FALL MONDAY WAS NOISY WRANGLING OVER REFORM BETWEEN THE RULING COALITION AND THE OPPOSITION INVESTORS AND TRADERS NOW ARE PAYING AS MUCH ATTENTION TO THE HORSETRADING AMONG POLITICIANS AS STOCK TRADING IN THE MARKETS MR HOSOKAWA HAS MADE POLITICAL REFORM HIS TOP PRIORITY AND VOWED TO PASS IT BY YEAR'S END GIVING THE ISSUE AN URGENCY SIMILAR TO WHAT PRESIDENT CLINTON HAS ATTACHED TO THE NORTH AMERICAN FREE TRADE AGREEMENT JAPAN'S LEADER HAS PUT ECONOMIC STIMULUS PLANS 30 BILLION IN SPENDING AND AN INCOMETAX CUT ON HOLD UNTIL HE CAN PUSH THROUGH THE ELECTORAL CHANGES MR HOSOKAWA'S REFORM PACKAGE INCLUDES BILLS TO CURB CORPORATE CONTRIBUTIONS TO INDIVIDUAL POLITICIANS AND TO PROVIDE PUBLIC FUNDS TO OFFICESEEKERS THE MOST DIFFICULT ISSUE INVOLVES REWRITING THE RULES GOVERNING PARLIAMENTARY ELECTIONS TO ELIMINATE JAPAN'S MULTISEAT DISTRICT SYSTEM POLITICAL REFORM HAS BEEN DIFFICULT IN THE PAST INDEED THE PAST TWO PRIME MINISTERS AND THE LONGRULING LIBERAL DEMOCRATIC PARTY ITSELF FELL FROM POWER BECAUSE OF AN INABILITY TO PASS REFORM OVER THE NEXT MONTH MR HOSOKAWA WILL EITHER BECOME THE FIRST JAPANESE LEADER TO CONQUER THE PROBLEM OR ITS THIRD VICTIM AFTER TOSHIKI KAIFU AND KIICHI MIYAZAWA WITH LEGISLATORS LOCKED IN HIGHSTAKES NEGOTIATIONS MR HOSOKAWA SAID THE BILLS MUST PASS BY THE CLOSE OF THE CURRENT SESSION SCHEDULED FOR MIDDECEMBER TO DO SO THE PROPOSALS MUST GET THROUGH THE MOREPOWERFUL LOWER HOUSE BY THE END OF THE WEEK GIVING THE UPPER HOUSE A MONTH TO DELIBERATE THE TIMING COULD SLIP A FEW DAYS WITH MR HOSOKAWA RIDING HIGH IN THE PUBLIC OPINION POLLS THE ODDS SEEM TO BE IN HIS FAVOR THE CHANCES OF REFORM PASSING ARE OVER 70 ASSERTS TAKAO TOSHIKAWA EDITOR OF A POLITICAL NEWSLETTER AND IF HE SUCCEEDS MR HOSOKAWA WHO ONCE WAS DERIDED AS A WEAK CARETAKER OF A FRAGILE COALITION COULD INSTEAD EMERGE WITH A STRONG MANDATE FOR CHANGE THE PRIME MINISTER HOWEVER HEADS A FRAGILE SEVENPARTY COALITION WHOSE LEGISLATIVE MAJORITY IS THIN AND A FEW DEFECTIONS ARE CONSIDERED LIKELY EVERYBODY AGREES ON THE NEED FOR REFORM SAYS MASAHARU GOTODA AN LDP VETERAN BUT THAT CONCERNS THE POLITICAL LIFE OF EACH PARLIAMENT MEMBER AND THEY HAVE TO CUT INTO THEIR OWN FLESH AND BLOOD HE SAYS CHANCES OF PASSAGE ARE 5050 A LOSS FOR MR HOSOKAWA COULD ALSO SPELL MORE CONFUSION FOR THE MARKETS THE IMMEDIATE AFTERMATH WOULD ALMOST CERTAINLY BE A DISSOLUTION OF PARLIAMENT WITH ELECTIONS TO FOLLOW BUT WITHOUT ANY MECHANISM FOR SETTING A TIMETABLE FOR ECONOMIC STIMULUS IF REFORM FAILS THERE'S NO HOPE SAYS MR TOSHIKAWA WE'RE DEAD JATHON SAPSFORD AND MICHAEL WILLIAMS CONTRIBUTED TO THIS ARTICLE 9311160062 931116 BUSINESS BRIEF KRUG INTERNATIONAL CORP PROFIT ON CONTINUING LINES EXPECTED TO RISE FOR YEAR KRUG INTERNATIONAL CORP EXPECTS TO POST A 20 INCREASE IN EARNINGS FROM CONTINUING OPERATIONS IN THE YEAR ENDING MARCH 31 REFLECTING IMPROVED RESULTS IN ITS UNITED KINGDOMBASED LEISUREMARINE DIVISION SAID CHAIRMAN MAURICE F KRUG IN FISCAL 1993 KRUG INTERNATIONAL BASED IN DAYTON OHIO EARNED 26 MILLION OR 60 CENTS A SHARE ON 972 MILLION IN REVENUE DURING THE SECOND QUARTER ENDED SEPT 30 KRUG DISCONTINUED CERTAIN OPERATIONS AND RECORDED A PROVISION FOR A LOSS IN ITS DISCONTINUED OPERATIONS OF 15 MILLION OR 33 CENTS A SHARE INCLUDING THE PROVISION THE COMPANY EARNED 96000 OR TWO CENTS A SHARE KRUG INTERNATIONAL ALSO HAS A HOUSEWARES DIVISION AND A LIFESCIENCES AND ENGINEERING UNIT 9311160061 931116 INTERNATIONAL BRIEF SAABSCANIA AB AUTO MAKER'S LOSS NARROWED FOR 3RD QUARTER 9 MONTHS SWEDISH AUTO MAKER SAAB AUTOMOBILE AB SAID THAT FOR THE FIRST NINE MONTHS OF 1993 ITS PRETAX LOSS AFTER FINANCIAL ITEMS NARROWED TO 844 MILLION KRONOR 1033 MILLION FROM A LOSS OF 134 BILLION KRONOR A YEAR EARLIER FOR THE THIRD QUARTER SAAB'S PRETAX LOSS AFTER FINANCIAL ITEMS NARROWED TO 285 MILLION KRONOR FROM 541 MILLION KRONOR THE COMPANY SAID SALES IN THE THIRD QUARTER TOTALED 372 BILLION KRONOR UP FROM 309 BILLION KRONOR SAAB AUTOMOBILE IS JOINTLY OWNED BY SAABSCANIA AB AND GENERAL MOTORS CORP THE SWEDISH OWNER AN AUTOMOTIVE AND AEROSPACE GROUP IS A WHOLLY OWNED SUBSIDIARY OF SWEDEN'S AB INVESTOR AN INDUSTRIAL AND INVESTMENT HOLDING COMPANY 9311160060 931116 WHAT'S NEWS BUSINESS AND FINANCE GENERAL MOTORS PLANS TO CONTRIBUTE 57 BILLION OF ITS CLASS E STOCK TO A FUND FOR HOURLY WORKERS AN INNOVATIVE BUT RISKY PLAN FOR REDUCING THE BIGGEST US UNFUNDED PENSION LIABILITY WHILE THE MOVE APPARENTLY WOULD TAKE A BIG CHUNK OUT OF GM'S 24 BILLION PENSION LIABILITY IT FACES REGULATORY HURDLES BOARD CLEARANCE AND WOULD REQUIRE AN ACT OF CONGRESS CHRYSLER CONTRIBUTED 26 BILLION TO ITS PENSION FUND IN THE FIRST THREE QUARTERS OF 1993 AS PART OF AN EFFORT TO CUT THE CAR MAKER'S UNFUNDED LIABILITY BUT CHRYSLER SAID ITS LIABILITY WILL RISE BY YEAR END AS A RESULT OF LOW INTEREST RATES AND ITS NEW LABOR CONTRACT THE FED REJECTED SHAWMUT NATIONAL'S APPLICATION TO ACQUIRE NEW DARTMOUTH BANK BECAUSE OF CONCERNS ABOUT SHAWMUT'S COMPLIANCE WITH FAIRLENDING LAWS THE REJECTION IS ANOTHER INDICATION OF THE TOUGHER STAND BEING TAKEN BY REGULATORS AGAINST DISCRIMINATORY LENDING PRACTICES BANK REGULATORS ARE PREPARING COMMUNITYINVESTMENT RULES THAT WOULD REQUIRE BANKS TO INCORPORATE LOW AND MODERATEINCOME NEIGHBORHOODS INTO THEIR SERVICE AREAS PARAMOUNT DIRECTORS REJECTED QVC'S SWEETENED 107 BILLION OFFER ON THE EVE OF A LEGAL SHOWDOWN TODAY THAT PITS QVC AGAINST PARAMOUNT AND ITS CHOSEN MERGER PARTNER VIACOM TIME WARNER IS SLOWING PLANS FOR A FIFTH TV NETWORK IN THE WAKE OF RESISTANCE FROM STATIONS THAT ARE ALSO BEING WOOED BY A RIVAL NETWORK FROM PARAMOUNT AND CHRISCRAFT INDUSTRIES PRUDENTIAL SECURITIES WAS WARNED BY REGULATORS NOT TO TRY TO FORCE INVESTORS OUT OF ARBITRATION OR LITIGATION OVER ITS SOURED LIMITED PARTNERSHIPS TOKYO STOCKS TUMBLED 23 WITH THE NIKKEI INDEX SINKING 41894 POINTS TO 1807461 BUT MEXICO CITY STOCKS HIT ANOTHER RECORD AS INVESTORS SEEMED CONVINCED THE US WILL PASS NAFTA INDUSTRIAL PRODUCTION JUMPED 08 IN OCTOBER ANOTHER SIGN THAT THE SECTOR BEGAN PERKING UP THIS FALL AFTER A DISMAL PERFORMANCE MOST OF THE YEAR NORTH AMERICANBUILT VEHICLE SALES IN EARLY NOVEMBER WERE UP STRONGLY FROM A YEAR AGO SUGGESTING SALES COULD REMAIN BRISK THROUGH YEAR END AT&T PLANS TO OFFER A PROGRAM IN WHICH LONGDISTANCE SERVICE CUSTOMERS ARE REWARDED WITH FREQUENTFLIER MILES FOLLOWING STEPS BY RIVALS APPLE CEO SPINDLER SAID THE COMPUTER MAKER PLANS TO MAKE A SWIFT TRANSITION TO MACINTOSH COMPUTERS BASED ON THE NEW POWERPC CHIP BIG LIFE INSURERS ARE GETTING SET FOR ANOTHER ROUND OF DIVIDEND CUTS IN RESPONSE TO FALLING INTEREST RATES ACCOUNTING REGULATORS PLAN TO PROPOSE A RULE THAT WILL MAKE IT HARDER FOR SOME COMPANIES TO CLEAN UP THEIR BALANCE SHEETS AND GO PUBLIC KMART'S PROFIT FELL 23 IN ITS THIRD QUARTER REFLECTING PROBLEMS SELLING APPAREL AND BURDENS FROM LOSSES AT ITS PACE WAREHOUSE SUBSIDIARY FIRST CHICAGO NAMED LEO MULLIN PRESIDENT AND CHIEF OPERATING OFFICER MAKING HIM THE HEIR APPARENT TO RICHARD THOMAS CHAIRMAN AND CEO JAPANESE OFFICIALS RAIDED THE OFFICES OF FUJITSU SONY MATSUSHITA ELECTRIC TOSHIBA AND MITSUBISHI ELECTRIC ON SUSPICION OF BIDRIGGING CATERPILLAR'S CHAIRMAN SAID THE COMPANY BELIEVES IT CAN SUSTAIN PRODUCTION EVEN IF THE UNITED AUTO WORKERS UNION STRIKES AGAINST THE CONSTRUCTIONEQUIPMENT MAKER AGAIN BONDS LEHMAN BROTHERS TREASURY INDEX 554311 UP 444 COMMODITIES OIL 1676 A BARREL UP FOUR CENTS DOW JONES FUTURES INDEX 13368 UP 001 SPOT INDEX 12258 UP 041 DOLLAR 10670 YEN UP 095 16920 MARKS UP 00070 9311160059 931116 INTERNATIONAL BRIEF TELEFONICA SA CONSOLIDATED PRETAX PROFIT ROSE 96 IN NINE MONTHS SPAIN'S STATERUN TELECOMMUNICATIONS MONOPOLY TELEFONICA SA SAID ITS PRETAX CONSOLIDATED PROFIT ROSE 96 IN THE FIRST NINE MONTHS OF 1993 TO 9468 BILLION PESETAS 696 MILLION FROM 8641 BILLION PESETAS A YEAR EARLIER CONSOLIDATED REVENUE ROSE 65 TO 95955 BILLION PESETAS FROM 90119 BILLION PESETAS TELEFONICA SAID A SLOWDOWN IN OPERATING PROFIT HAS BEEN COMPENSATED FOR BY THE RESTRAINT ON OPERATING EXPENSES AND THE CONTAINMENT OF NET EXTRAORDINARY ITEMS USAGE PER LINE CONTINUED TO DECLINE FROM 1992 THOUGH THE FIGURES FOR BASIC TELEPHONE USE IMPROVED WITH APPLICATIONS FOR NEW PHONES RISING 44 TO 843723 COMPARED WITH A 07 DECREASE IN THE FIRST HALF OF 1993 TELEFONICA SAID 9311160058 931116 INTERNATIONAL BRIEF BRITISH STEEL PLC CONCERN RETURNED TO PROFIT IN SIX MONTHS ENDED OCT 2 BRITISH STEEL PLC REPORTED A RETURN TO PROFIT FOR THE FISCAL FIRST HALF AND A REINSTATEMENT OF AN INTERIM DIVIDEND AFTER MORE THAN TWO YEARS OF LOSSES EUROPE'S LARGEST PUBLICLY TRADED STEEL COMPANY REPORTED PRETAX PROFIT OF 27 MILLION 403 MILLION FOR THE SIX MONTHS ENDED OCT 2 COMPARED WITH A LOSS OF 51 MILLION A YEAR EARLIER SALES FELL 11 TO 197 BILLION 294 BILLION FROM 221 BILLION FORECASTS HAD BEEN MIXED RANGING FROM A 10 MILLION LOSS TO A 30 MILLION PRETAX PROFIT HIGHER STEEL PRICES AND LOWER OPERATIONAL COSTS WERE THE KEY REASONS FOR BRITISH STEEL'S IMPROVED PERFORMANCE THE COMPANY SAID DEMAND FOR STEEL IN THE UK RECOVERED MARKEDLY IN THE FIRST HALF BRIAN MOFFAT CHAIRMAN AND CHIEF EXECUTIVE SAID IN A STATEMENT BUT HE STRESSED THAT THE RISE LARGELY REFLECTED AN INCREASE IN INVENTORY FROM THE LOW BASE AT THE END OF 1992 9311160057 931116 TECHNOLOGY BRIEF MEDAREX INC OVARIAN CANCER TREATMENT WINS ORPHAN DRUG STATUS MEDAREX INC SAID THE FOOD AND DRUG ADMINISTRATION GRANTED ORPHAN DRUG STATUS TO MDX210 AN ANTIBODY PRODUCT FOR THE TREATMENT OF OVARIAN CANCER MEDAREX A PRINCETON NJ BIOPHARMACEUTICAL CONCERN SAID THE FDA'S ACTION STRENGTHENS THE COMPANY'S PLANS FOR COMMERCIALIZATION IN THE DEVELOPMENT OF THE DRUG AS A TREATMENT FOR BOTH OVARIAN AND BREAST CANCERS THE ANTIBODY ENTERED PHASE I/II CLINICAL TRIALS IN MAY ORPHAN DRUG STATUS GIVES A NEW DRUG SEVEN YEARS OF MARKETING EXCLUSIVITY FOLLOWING FDA APPROVAL THE ORPHAN DRUG ACT WAS PASSED IN 1983 TO ENCOURAGE DEVELOPMENT OF DRUGS FOR CONDITIONS THAT AFFECT A SMALL NUMBER OF PEOPLE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY MEDAREX SHARES ROSE 25 CENTS TO 31 9311160056 931116 MARKETING & MEDIA PARAMOUNT PICTURES FACES SUIT BY FORMER EXECUTIVE HOLLYWOOD DAVID KIRKPATRICK PARAMOUNT PICTURES' FORMER PRESIDENT OF PRODUCTION SUED THE MOVIE STUDIO FOR FRAUD CHARGING AMONG OTHER THINGS THAT A TIFF WITH A TOP EXECUTIVE AT THE STUDIO'S PARENT COMPANY LED TO HIM BEING UNJUSTLY OUSTED FROM HIS POST AS AN INDEPENDENT PRODUCER ON THE LOT HE IS SEEKING UNSPECIFIED MONETARY DAMAGES IN THE COMPLAINT FILED IN STATE COURT IN LOS ANGELES MR KIRKPATRICK ALLEGED THAT STANLEY JAFFE WHO WAS A MOVIE PRODUCER AT PARAMOUNT PICTURES BEFORE BEING NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT PARENT PARAMOUNT COMMUNICATIONS INC DEVELOPED AN IRREVERSIBLE HOSTILITY TOWARD HIM DURING THE PRODUCTION OF SCHOOL TIES THAT WAS THE LAST FILM MR JAFFE COPRODUCED BEFORE BEING NAMED A TOP EXECUTIVE AT THE PARENT COMPANY MR KIRKPATRICK CHARGED THAT MR JAFFE GREW TO DISLIKE HIM WHEN MR KIRKPATRICK IN HIS CAPACITY AS PRESIDENT OF PRODUCTION BICKERED WITH HIM WHEN THE PRODUCTION COST ON SCHOOL TIES ROSE ABOVE A PREVIOUSLY AGREEDUPON FIGURE A SPOKESWOMAN FOR PARAMOUNT SAID THE STUDIO WON'T COMMENT ON THE SUIT UNTIL IT HAS THE OPPORTUNITY TO REVIEW ITS CONTENTS 9311160055 931116 BUSINESS BRIEF COEUR D'ALENE MINES CORP THIRDQUARTER LOSS WIDENED ON ONETIME WRITEOFFS COEUR D'ALENE MINES CORP SAID WRITEOFFS TO SETTLE LEGAL AND ENVIRONMENTAL DISPUTES AND TWO DELINQUENT NOTES RESULTED IN A THIRDQUARTER LOSS OF 104 MILLION OR 68 CENTS A SHARE IN THE YEAREARLIER QUARTER COEUR D'ALENE REPORTED A LOSS OF 12 MILLION OR EIGHT CENTS A SHARE REVENUE ROSE 80 TO 238 MILLION FROM 132 MILLION A YEAR EARLIER THE COEUR D'ALENE IDAHO COMPANY SAID THE ONETIME WRITEOFFS TOTALED 94 MILLION OR 61 CENTS A SHARE AND INCLUDED A PROPOSED PAYMENT OF 19 MILLION IN CASH AND 4 MILLION OF THE COMPANY'S STOCK TO SETTLE A SHAREHOLDERS CLASSACTION LAWSUIT RELATED TO A 1990 STOCK OFFERING THE COMPANY SAID IT ALSO AGREED TO PAY THE US ENVIRONMENTAL PROTECTION AGENCY 12 MILLION RELATED TO THE CLEANUP OF E BUNKER HILL SUPERFUND SITE IN IDAHO AND IT WROTE OFF 23 MILLION IN DELINQUENT PROMISSORY NOTES HELD BY A COMPANY IT ACQUIRED IN 1988 9311160054 931116 BUSINESS BRIEF CRYSTAL BRANDS INC CONCERN REPORTS LOSS MULLS RESTRUCTURING CREDIT ACCORDS CRYSTAL BRANDS INC REPORTED A LOSS FOR ITS FISCAL THIRD QUARTER AND SAID IT MAY NEED TO RESTRUCTURE ITS CREDIT ARRANGEMENTS WITH LENDERS OR SEEK OTHER MEANS TO DEAL WITH CREDIT DIFFICULTIES THE SOUTHPORT CONN COMPANY RESTRUCTURED 419 MILLION IN DEBT ABOUT A YEAR AGO LAST YEAR'S ARRANGEMENT WAS INTENDED TO REMAIN IN EFFECT THROUGH 1995 FOR THE QUARTER THE MAKER OF SPORTSWEAR AND COSTUME JEWELRY REPORTED A LOSS OF 7 MILLION OR 77 CENTS A SHARE COMPARED WITH NET INCOME OF 16 MILLION OR 17 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE FELL 12 TO 1249 MILLION FROM 1424 MILLION A SPOKESMAN SAID CRYSTAL BRANDS IS SEEKING TO REOPEN NEGOTIATIONS WITH LENDERS BECAUSE OF A LARGE PRINCIPLE PAYMENT DUE EARLY IN 1995 AND CONCERNS ABOUT MEETING COVENANT COMPLIANCE AND DEBTSERVICE REQUIREMENTS IN 1994 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CRYSTAL BRANDS SHARES FELL 125 CENTS TO 1875 9311160053 931116 INTERNATIONAL BRIEF CS HOLDING BANK CONCERN OFFERS TO BUY FULL CONTROL OF LEU HOLDING CS HOLDING OFFERED TO TAKE FULL CONTROL OF LEU HOLDING LTD SENDING LEU'S STOCK UP 17 IN ZURICH TRADING ON MONDAY THE TRANSACTION WOULD RAISE CS HOLDING'S STAKE IN LEU TO 100 FROM 539 AS PART OF THE AGREEMENT CS HOLDING STOCKHOLDERS WILL BE ASKED AT A DEC 7 MEETING TO APPROVE A 5FOR1 SHARE SPLIT ON NOV 25 THE SWISS BANK HOLDING COMPANY WILL OFFER LEU'S MINORITY SHAREHOLDERS FIVE NEW CS HOLDING BEARER SHARES AND 720 SWISS FRANCS 48449 IN CASH FOR EVERY SIX LEU SHARES BASED ON STOCK PRICES AT THE TIME OF THE ANNOUNCEMENT LATE SUNDAY LEU HOLDERS WILL BE GETTING THE CS HOLDING STOCK AT AROUND A 15 PREMIUM MONDAY ON THE ZURICH STOCK EXCHANGE LEU'S STOCK ROSE 98 SWISS FRANCS TO 690 FRANCS CS HOLDING BEARER SHARES GAINED 13 OR 45 FRANCS TO FINISH AT 3425 FRANCS ANALYSTS SAID THE MOVE WILL RESULT IN A CLEARER STRUCTURE FOR THE RATHER COMPLEX CS HOLDING WHICH OWNS A NUMBER OF BANKS MANY OF WHICH OFFER SIMILAR SERVICES 9311160052 931116 BUSINESS BRIEF SITHE ENERGIES INC POWER PRODUCER TO BUILD GASFIRED PLANT IN AUSTRALIA SITHE ENERGIES INC SAID IT PLANS TO BUILD AND OPERATE A 150MEGAWATT NATURAL GASFIRED COGENERATION POWER PLANT IN AUSTRALIA THE COMPANY'S FIRST PROJECT OUTSIDE THE US AND CANADA THE NEW YORKBASED INDEPENDENT POWER PRODUCER SAID IT SECURED AN AGREEMENT TO SELL POWER PRODUCED AT THE PLANT TO PROSPECT ELECTRICITY THE LOCAL ELECTRICITY DISTRIBUTOR THE COMPANY SAID IT ALSO HAS AN AGREEMENT TO SELL STEAM TO A UNIT OF PRATT INDUSTRIES AN AUSTRALIAN INDUSTRIAL CONCERN SITHE SAID IT WILL BEGIN CONSTRUCTION ON THE 125 MILLION PLANT IN THE 1994 THIRD QUARTER COMPLETION IS SCHEDULED FOR THE END OF 1995 THE FACILITY WILL BE IN SMITHFIELD NEW SOUTH WHALES SITHE OWNS OR LEASES 20 POWER PLANTS THAT HAVE TOTAL CAPACITY OF 523 MEGAWATTS IT HAS THREE PLANTS UNDER CONSTRUCTION WITH A PROJECTED CAPACITY OF 1229 MEGAWATTS IT SELLS THE POWER PRODUCED PRIMARILY TO LOCAL ELECTRIC UTILITIES 9311160051 931116 BUSINESS BRIEF PETROLEUM HELICOPTERS INC AIR FLEET OPERATOR EXPECTS TO POST WEAK NET FOR PERIOD PETROLEUM HELICOPTERS INC SAID EARNINGS IN ITS SECOND QUARTER ENDED OCT 31 WERE FIVE CENTS TO 15 CENTS A SHARE SIGNIFICANTLY LOWER THAN SOME ANALYSTS' FORECASTS IN ADDITION THE NEW ORLEANSBASED OPERATOR OF A COMMERICAL HELICOPTER FLEET SAID IT CUT ITS WORK FORCE 45 OR ABOUT 83 JOBS LAST WEEK THE EXPECTED EARNINGS DECLINE AND THE LAYOFFS ARE THE RESULT OF INCREASINGLY COMPETITIVE CONDITIONS IN THE COMPANY'S DOMESTIC OIL AND GAS TRANSPORTATION MARKET ACCORDING TO PETROLEUM HELICOPTERS A YEAR EARLIER PETROLEUM HELICOPTERS REPORTED NET INCOME OF 887000 OR 16 CENTS A SHARE ON REVENUE OF 438 MILLION 9311160050 931116 LETTERS TO THE EDITOR NO SHORTAGE YET ON THE SUPPLY SIDE AS THE SPIN DOCTORS ASSESS THE MEANING OF NOVEMBER'S ELECTION RESULTS ONE INTERPRETATION MERITS EMPHASIS THE MEDIA PUNDITS' CLAIM PRIOR TO NEW JERSEY'S VOTE THAT SUPPLYSIDE ECONOMICS WAS FINISHED REFLECTS THEIR HARDENED BELIEF THAT THE 1980S TAXCUTTING VIEW WAS A PASSING SUPERFICIAL FAD YET THESE FISCAL VIEWS IE CHANGES IN TAX RATES AFFECT HUMAN BEHAVIOR TAX RATES ARE DISTINCT FROM TAX REVENUES FISCAL POLICY SHOULD BE DIRECTED AT LONGERTERM GROWTH RATHER THAN CYCLICAL STABILIZATION WERE NOT NEW AND UNTESTED RATHER THEY NOT ONLY REFLECTED THE WELLRESPECTED ORTHODOX VIEWS OF THE ECONOMIC PROFESSION'S CLASSICAL WRITERS EG SMITH SAY MILL WHO ATTACKED HIGHTAX MERCANTILIST POLICIES BUT ALSO THE VIEWS OF THE TAXREVOLTING FOUNDING FATHERS THESE VIEWS PROVED SUCCESSFUL IN EARLIER PERIODS DURING THE 1920S AND 1960S IN THE US AS WELL AS IN SEVERAL OTHER COUNTRIES THE FACT THAT THE 1980S SUPPLYSIDE VIEW WAS NEITHER NOVEL NOR UNTESTED IS THE REAL REASON WHY TODAY'S MYOPIC PUNDITS CONTINUE TO ERR IN ANALYZING THE SIGNIFICANCE OF THIS VIEW 9311160049 931116 BUSINESS BRIEF FARMLAND INDUSTRIES INC FARMER COOP POSTS DEFICIT OF 304 MILLION FOR YEAR FARMLAND INDUSTRIES INC A US FARMEROWNED COOPERATIVE REPORTED A FISCAL YEAR LOSS OF 304 MILLION COMPARED WITH A 1992 PROFIT OF 623 MILLION FARMLAND SAID THE RECORD RAIN AND FLOODING ACROSS THE MIDWEST LAST SUMMER DISRUPTED ITS GRAIN BUSINESS FERTILIZER PROFIT MARGINS WERE ALSO HURT BY HIGHER PRICES FOR NATURAL GAS WHICH IS USED TO MAKE NITROGEN FERTILIZER THE YEAR ENDED AUG 31 ALSO INCLUDES A 294 MILLION PRETAX WRITEDOWN OF ASSETS FOR SALE THE COMPANY SAID IN KANSAS CITY MO FARMLAND SAID ANNUAL SALES CLIMBED 38 TO 472 BILLION FROM 343 BILLION IN ADDITION TO HANDLING FARM SUPPLIES FARMLAND SLAUGHTERS HOGS AND EXPORTS GRAIN AMONG OTHER THINGS 9311160048 931116 BUSINESS BRIEF PHILIP MORRIS COS ZURICH UNIT WILL BUY 80 OF BULGARIAN CONFECTIONER KRAFT JACOBS SUCHARD AG A ZURICH UNIT OF PHILIP MORRIS COS SAID IT SIGNED AN AGREEMENT TO ACQUIRE AN 80 STAKE IN REPUBLIKA CONFECTIONERY CO A BULGARIAN CHOCOLATE MAKER KRAFT JACOBS SUCHARD SAID IT WILL INVEST 16 MILLION TO ACQUIRE 80 OF REPUBLIKA'S SHARES ROM THE BULGARIAN GOVERNMENT AND TO MODERNIZE THE COMPANY'S FACTORY IN SVOGE BULGARIA THE REMAINING 20 OF REPUBLIKA WILL BE OFFERED BY KRAFT JACOBS SUCHARD TO REPUBLIKA'S MORETHAN800 CONFECTIONERY EMPLOYEES KRAFT JACOBS SUCHARD IS THE EUROPEAN UNIT OF KRAFT GENERAL FOODS INTERNATIONAL AN OPERATING UNIT OF NEW YORKBASED PHILIP MORRIS SINCE 1992 KRAFT JACOBS SUCHARD HAS BUILT A POSITION IN CENTRAL AND EASTERN EUROPE THROUGH ACQUISITIONS OF FIVE CONFECTIONERY COFFEE AND SPICE COMPANIES 9311160047 931116 BUSINESS BRIEF BAT INDUSTRIES PLC FARMERS GROUP UNIT FACES INVESTIGATION BY CALIFORNIA FARMERS GROUP INC FACES A PROBE OF ITS PRACTICES ORDERED BY CALIFORNIA'S INSURANCE COMMISSIONER AFTER A STATE JUDGE SAID THE INSURER MUST PAY 572 MILLION IN DAMAGES IN A CIVIL SUIT FILED BY A POLICYHOLDER COMMISSIONER JOHN GARAMENDI SAID THAT IF WIDESPREAD ABUSE OF POLICYHOLDER RIGHTS IS FOUND IN THE COMPANY'S VARIOUS UNITS HIS DEPARTMENT MAY HAVE THE AUTHORITY TO REVOKE THEIR LICENSE TO DO BUSINESS A SPOKESMAN FOR FARMERS A LOS ANGELES UNIT OF BRITISH TOBACCO GIANT BA T INDUSTRIES PLC SAID THE COMPANY WON'T HAVE A PROBLEM WITH A REVIEW OF ITS PROCEDURES BY REGULATORS HOWEVER HE NOTED FARMERS BELIEVES THE JUDGE'S RULING ISSUED OCT 7 IS IN ERROR AND IT INTENDS TO APPEAL THE FINDING ONCE A WRITTEN ORDER IS ISSUED IN THE CIVIL SUIT A FARMERS UNIT WAS ORDERED TO PAY LEGAL FEES AND DAMAGES FOR POLICYHOLDER SURGIN INC OF TUSTIN CALIF SURGIN A MAKER OF MEDICAL SUPPLIES SUED FARMERS IN 1991 FOR FAILING TO DEFEND THE POLICYHOLDER WHEN IT WAS SUED FOR PATENT INFRINGEMENT 9311160046 931116 BUSINESS BRIEF STELCO INC FINANCIAL INSTITUTION IS HIRED TO BUY WARRANTS IN MARKET CANADA'S STELCO INC SAID IT HIRED A FINANCIAL INSTITUTION TO BUY IN THE MARKET THE COMPANY'S WARRANTS BEFORE THEY COME DUE IN ORDER TO TAKE ADVANTAGE OF A RECENT RALLY IN STELCO'S SHARE PRICE THE COMPANY WOULDN'T IDENTIFY THE INSTITUTION A SPOKESMAN SAID THERE ARE 205 MILLION WARRANTS OUTSTANDING WHICH ARE EXCHANGEABLE INTO CLASS A COMMON SHARES AT 5625 CANADIAN DOLLARS US428 A SHARE BY CAUSING THE WARRANTS TO BE EXERCISED NOW THE STEELMAKER HOPES TO AVOID SEEING ITS SHARE PRICE DROP BELOW THE EXERCISE PRICE BEFORE MARCH 15 WHEN THE WARRANTS COME DUE IF ALL THE WARRANTS WERE EXERCISED STELCO HAMILTON ONTARIO WOULD RECEIVE C1153 MILLION US878 MILLION FROM THE PURCHASE OF SHARES IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY STELCO CLASS A SHARES CLOSED AT C6875 DOWN 25 CANADIAN CENTS BUT WELL ABOVE THEIR 52WEEK LOW OF C112 REACHED LAST DECEMBER THE WARRANTS CLOSED AT C173 DOWN 15 CANADIAN CENTS 9311160045 931116 WHO'S NEWS GUTMAN TO STEP DOWN FROM JOINT COMMITTEE ON TAX FOR CONGRESS WASHINGTON HANK GUTMAN THE CHIEF OF STAFF FOR CONGRESS'S JOINT COMMITTEE ON TAXATION PLANS TO LEAVE THAT POST AFTER THIS YEAR SINCE EARLY 1991 MR GUTMAN HAS HEADED THE OFFICE THAT ESTIMATES THE FISCAL IMPACT OF ANY TAX PROPOSALS THAT CONGRESS CONSIDERS THOSE PROJECTIONS CAN BE CRITICAL TO THE PROSPECTS OF LEGISLATION GIVEN THE PAYASYOUGO REQUIREMENTS OF FEDERAL BUDGET RULES AND THAT MAKES THE JOINT TAX JOB AN INFLUENTIAL AND SOMETIMES CONTROVERSIAL ONE DURING HIS TENURE MR GUTMAN WORKED ON THE TWO MAJOR TAX BILLS THAT PRESIDENT BUSH VETOED IN 1992 AND THE DEFICITCUTTING MEASURE THAT PRESIDENT CLINTON SIGNED IN AUGUST FORMERLY A PARTNER WITH THE DRINKER BIDDLE & REATH LAW FIRM OF PHILADEPHIA AND A PROFESSOR AT THE UNIVERSITIES OF PENNSYLVANIA AND VIRGINIA HE IS SEEKING TO RETURN TO PRIVATE PRACTICE IN TAX LAW THE CHAIRMAN OF CONGRESS'S TAXWRITING COMMITTEES WILL NAME A SUCCESSOR TO MR GUTMAN 9311160044 931116 LETTERS TO THE EDITOR SHARE THE FREEBIES AS A STICKYFINGERED TRAVELER WHOSE CLOSETS WERE ONCE JAMMED WITH HOTEL LAUNDRY BAGS FULL OF SOAP SHAMPOO AND SHOWER CAPS I THOROUGHLY ENJOYED YOUR NOV 1 PAGEONE FEATURE LEAVE THAT BED BUT HELP YOURSELF TO TINY SHAMPOOS MY WIFE AND I HAVE DISCOVERED A SOLUTION TO THIS VORTEX THAT GIVES US BOTH THE THRILL OF SWIPING AMENITIES AND THE JOY OF HELPING OTHERS WHEN OUR PLASTIC LAUNDRY BAG GETS FULL OF HOTEL FREEBIES WE DROP IT OFF AT A LOCAL HOMELESS SHELTER WHERE THE TINY PORTIONS ARE PERFECT FOR THEIR TRANSIENT CLIENTS 9311160043 931116 BUSINESS BRIEF GTE CORP PHONE LINES IN NEW ENGLAND WILL BE SOLD TO CONSORTIUM GTE CORP AS PART OF A STRATEGY TO CONCENTRATE ITS TELEPHONE OPERATIONS IN MORE LUCRATIVE AREAS AGREED TO SELL ITS 90000 TELEPHONE LINES IN THREE NEW ENGLAND STATES TERMS WEREN'T DISCLOSED THE TELEPHONEACCESS LINES IN MAINE NEW HAMPSHIRE AND VERMONT WILL BE SOLD TO THE NEW ENGLAND INDEPENDENT GROUP A CONSORTIUM OF LOCALEXCHANGE CARRIERS AND PRIVATE INVESTORS LED BY MCT INC IN NEW HAMPSHIRE LINCOLNVILLE TELEPHONE CO IN MAINE AND WAITSFIELD TELECOM IN VERMONT THE DECISION TO SELL THE LINES WAS ANNOUNCED IN APRIL AS PART OF A STRATEGY TO CLUSTER OUR OPERATIONS IN GEOGRAPHIC AREAS WHERE WE HAVE A STRONG MARKET PRESENCE A GTE SPOKESWOMAN SAID EXCLUDING THE LATEST AGREEMENT THE STAMFORD CONN COMPANY HAS SOLD OR IS IN THE PROCESS OF SELLING ABOUT 817500 ACCESS LINES THIS YEAR 9311160042 931116 BUSINESS BRIEF AEGON NV US UNIT TO BUY MONY'S GROUP PENSION OPERATIONS AEGON USA INC A UNIT OF AEGON NV OF THE NETHERLANDS AGREED TO BUY MUTUAL LIFE INSURANCE OF NEW YORK'S GROUP PENSION OPERATIONS WITH ASSETS AND LIABILITIES OF ABOUT 63 BILLION THE COMPANIES SAID TERMS WEREN'T DISCLOSED THE TRANSACTION SUBJECT TO REGULATORY APPROVAL IS EXPECTED TO TAKE EFFECT BY YEAR END MONY SAID IT WILL BUY 200 MILLION WORTH OF AEGON USA NOTES IN ADDITION TO INTEREST PAYMENTS ON THE NOTES MONY EXPECTS TO RECEIVE CERTAIN PAYMENTS RELATED TO THE TRANSFERRED BUSINESS A FUTURE PAYMENT TIED TO THE DETERMINATION OF THE VALUE OF THE TRANSFERRED BUSINESS AT THE END OF NINE YEARS AND A POTENTIAL PAYMENT BASED ON NEW BUSINESS GROWTH CONTRACT HOLDERS OF MONY'S GROUP PENSIONS MAY ACCEPT OR REJECT THE TRANSFER OF TO AUSA LIFE INSURANCE CO A NEW INSURER LICENSED BY THE STATE OF NEW YORK THAT IS A SUBSIDIARY OF AEGON USA THE TRANSFERRED BUSINESS NEW BUSINESS UNDERWRITTEN BY AUSA LIFE AND MONY'S REMAINING GROUP PENSIONS BUSINESS WILL BE SERVICED BY DIVERSIFIED INVESTMENT ADVISORS INC 9311160041 931116 WHO'S NEWS NASD BOARD ELECTS GRANO TO BE CHAIRMAN NEW YORK THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC SAID ITS BOARD OF GOVERNORS ELECTED JOSEPH GRANO JR CHAIRMAN OF THE BOARD MR GRANO SAID HE EXPECTS THE SECURITIES INDUSTRY NEXT YEAR WILL BEGIN GIVING INVESTORS MORE INFORMATION ABOUT THE RISKS OF VARIOUS INVESTMENT VEHICLES I CAN ALMOST ASSURE YOU THAT YOU WILL SEE ADDITIONAL DISCLOSURE IN 1994 ABOUT INVESTMENT RISKS SAID MR GRANO WHO BEGINS HIS ONEYEAR TERM IN JANUARY AS CHAIRMAN OF THE 28MEMBER BOARD OF GOVERNORS OF NASD WHICH OPERATES THE OVERTHECOUNTER STOCK MARKET MR GRANO PRESIDENT OF RETAIL SALES AND MARKETING FOR PAINEWEBBER INC SAID IN AN INTERVIEW HE EXPECTS LARGE BROKERAGE FIRMS WILL LEAD THE WAY WITH INCREASED INFORMATION FOR INVESTORS FOLLOWED BY NEW RULES AMONG NASD AND THE STOCK EXCHANGES REQUIRING BEEFED UP DISCLOSURE THE 45YEAROLD MR GRANO ALSO SAID HE EXPECTS THE NASD THE NEW YORK STOCK EXCHANGE AND FEDERAL AND STATE REGULATORS NEXT YEAR WILL PROPOSE AN INDUSTRYWIDE CONTINUING EDUCATION PROGRAM FOR BROKERS PROMPTED BY THE DIZZYING GROWTH IN COMPLICATED NEW INVESTMENT PRODUCTS MR GRANO SAID HE'S LOBBYING FOR A CONTINUING EDUCATION INSTITUTE FOR BROKERS THAT WOULD CONFER ON THEM SPECIAL DESIGNATIONS IF THEY COMPLETE ADVANCED TRAINING PROGRAMS MR GRANO SUCCEEDS FREDRIC M ROBERTS PRESIDENT OF FM ROBERTS & CO OF LOS ANGELES THE NASD BOARD ELECTED TWO NEW VICE CHAIRMEN DAVID BROOK DEPUTY CHAIRMAN OF JO HAMBRO & PARTNERS LTD OF LONDON AND ROBERT KLEINBERG EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF OPPENHEIMER & CO 9311160040 931116 LETTERS TO THE EDITOR MINERS' PRODUCTIVITY THE OCT 21 LETTER FROM RICHARD TRUMKA PRESIDENT OF THE UNITED MINE WORKERS OF AMERICA IN RESPONSE TO YOUR OCT 6 EDITORIAL IS AMAZINGLY WRONG BASED ON STATISTICS REPORTED BY THE MINE SAFETY AND HEALTH ADMINISTRATION MSHA THERE IS ONLY ONE UMWA OPERATION IN THE LIST OF THE 20 MOST PRODUCTIVE MINES 1992 AND ONLY FIVE IN THE TOP 50 TO BE FAIR PERHAPS MR TRUMKA WAS REFERRING ONLY TO UNDERGROUND MINES IN WHICH CASE HE IS STILL AMAZINGLY WRONG ACCORDING TO MSHA ONLY TWO UMWA MINES RANKED IN THE TOP 20 HIGHEST PRODUCTIVITY MINES AND ONLY EIGHT IN THE FIRST 50 COAL PRODUCTION THROUGH OCT 9 IS ESTIMATED AT 736 MILLION TONS ABOUT 5 UNDER 1992 FOR THE SAME PERIOD MARKET CONDITIONS HEAVILY INFLUENCED BY A DECLINE IN EXPORT COAL HAS BEEN A MAJOR FACTOR 9311160039 931116 LETTERS TO THE EDITOR NO RIGHT TO PRIVACY FOR SEN PACKWOOD YOUR NOV 1 EDITORIAL ABOUT SEN PACKWOOD'S DIARIES PERPETUATES THE MYTH THAT THERE IS A MONOLITHIC LEGAL CONCEPT KNOWN AS THE RIGHT TO PRIVACY CHIEF JUSTICE REHNQUIST ONCE OBSERVED THAT THE CONCEPT OF PRIVACY' CAN BE A COAT OF MANY COLORS AND QUITE DIFFERING KINDS OF RIGHTS TO PRIVACY' HAVE BEEN RECOGNIZED IN THE LAW THE KIND OF PRIVACY INTEREST ASSERTED BY SEN PACKWOOD IS THE RIGHT NOT TO BE REQUIRED TO DISCLOSE PERSONAL INFORMATION ABOUT ONESELF HOWEVER THE ONLY FEDERAL CONSTITUTIONAL RIGHT TO PRIVACY RECOGNIZED IN THE HOLDINGS OF THE SUPREME COURT IS A MUCH DIFFERENT KIND OF RIGHT THAT RIGHT HAS TO DO WITH THE FREEDOM TO MAKE PERSONAL CHOICES FREE FROM GOVERNMENT COMPULSION IN MATTERS RELATING TO MARRIAGE PROCREATION CHILD REARING AND THE LIKE NO MAJORITY OPINION IN ANY SUPREME COURT CASE HAS EVER UPHELD A CLAIM BASED ON A PURPORTED CONSTITUTIONAL RIGHT NOT TO BE REQUIRED TO DISCLOSE CONFIDENTIAL PERSONAL INFORMATION PURSUANT TO AN OTHERWISE LAWFUL SUBPOENA OR OTHER COURT PROCESS IF SEN PACKWOOD PERSUADES THE SUPREME COURT THAT HE NEED NOT DISCLOSE HIS DIARIES BECAUSE OF A CONSTITUTIONAL RIGHT TO PRIVACY HE WILL HAVE ACCOMPLISHED WHAT NO LITIGANT HAS EVER DONE BEFORE 9311160038 931116 BUSINESS BRIEFS FRUEHAUF TRAILER CORP REACHED AN AGREEMENT TO SELL TO J POLLOCK & CO AND SOCIETY VENTURE CAPITAL AN ALUMINUM SHEET OPERATIONS FACTORY IN DECATUR ALA THAT IT JOINTLY OWNS WITH ALUMAX MILL PRODUCTS INC TERMS WEREN'T DISCLOSED RUSSELL CORP SIGNED A LETTER OF INTENT TO BUY GAME INC A SPORTINGAPPAREL UNIT OF PRIVATELY HELD WC BRADLEY CO COLUMBUS GA FOR 35 MILLION NATIONAL RECORD MART INC SIGNED A DEFINITIVE AGREEMENT TO BUY A NINESTORE CHAIN OF MUSIC STORES FROM LEONARD SMITH INC ALBANY NY TERMS WEREN'T DISCLOSED FLOW INTERNATIONAL CORP SIGNED A LETTER OF INTENT TO BUY THE ASSETS OF INGERSOLLRAND CO'S WATERJET CUTTING SYSTEMS DIVISION TERMS WEREN'T DISCLOSED CINCINNATI MILACRON INC COMPLETED ITS ACQUISITION OF THE FERROMATIK PLASTICS INJECTION MOLDING MACHINE BUSINESS FROM GERMANY'S KLOECKNERWERKE AG FOR 94 MILLION MARKS 558 MILLION IN CASH AND ASSUMED DEBT ARMCO INC COMPLETED THE SALE OF ITS WORLDWIDE GRINDING SYSTEMS UNIT TO BAIN CAPITAL A BOSTON INVESTMENT FIRM IN PARTNERSHIP WITH MEMBERS OF THE OPERATIONS' MANAGEMENT FOR ABOUT 80 MILLION 9311160037 931101 REVIEW & OUTLOOK EDITORIAL SENATE PC BLUE THIS IS BIGGER THAN PACKWOOD IT'S AN OPPORTUNITY FOR THE SENATE TO SHOW THE PEOPLE OF THIS COUNTRY THAT THEY GET IT THOSE ARE THE ANGRY AND PERHAPS UNDERSTANDABLE WORDS OF JULIE WILLIAMSON ONE OF THE 20 OR SO WOMEN WHO HAVE ACCUSED OREGON REPUBLICAN BOB PACKWOOD OF SEXUAL HARASSMENT BUT THOSE WORDS ALSO NOW SEEM TO BE THE MOTTO OF THE SENATE ETHICS COMMITTEE TO SHOW EVERYONE THEY GET IT THE SENATORS ARE GOING TO DO THEIR BEST TO GET MR PACKWOOD AT LEAST THAT'S THE WAY IT LOOKS FROM THE NEWS THAT THE COMMITTEE HAS SCOURED 5000 OF THE 8200 PAGES IN MR PACKWOOD'S PERSONAL DIARY MOREOVER COMMITTEE CHAIRMAN RICHARD BRYAN D NEV HAS ANNOUNCED TO THE WORLD THAT THE DIARIES HAVE RAISED QUESTIONS ABOUT A POSSIBLE VIOLATION OF ONE OR MORE LAWS INCLUDING CRIMINAL LAWS ALL OF THIS IN ORDER TO PERSUADE THE SENATE TO VOTE TO FORCE MR PACKWOOD TO OPEN THE REST OF HIS DIARY PERSONAL DETAILS AND ALL TO STAFF SCRUTINY THE SAME COMMITTEE THAT GAVE THE KEATING FIVE A WRIST SLAP HAS SUDDENLY BECOME NYPD BLUE OR PERHAPS SENATE PC AS IN POLITICALLY CORRECT BLUE THERE IS NO CONSTITUTIONAL RIGHT BEING VIOLATED THERE IS NO WITCH HUNT OR FISHING EXPEDITION UNDERWAY MR BRYAN DECLARED LAST WEEK BUT WHAT ARE WE TO CALL AN INVESTIGATION THAT IS CHARGED WITH LOOKING FOR ONE KIND OF EVIDENCE BUT THEN EXPANDS ITS CHARTER WHEN IT DISCOVERS ANOTHER OR A COMMITTEE THAT THEN BROADCASTS WORD OF A POSSIBLE VIOLATION IN SUCH A WAY AS TO FURTHER MAR THE REPUTATION OF THE ACCUSED SENATOR WE'D HAVE THOUGHT THAT THE NORMAL PRACTICE UPON DISCOVERING EVIDENCE OF A CRIME WOULD BE TO SHUT UP AND TURN IT OVER TO A US ATTORNEY BUT BY NOW WE KNOW THAT VERY LITTLE IS NORMAL ABOUT THE SUPERCHARGED POLITICS OF SEXUAL HARASSMENT AS MS WILLIAMSON AVERS THE PACKWOOD CASE IS LESS ABOUT ONE SENATOR'S BOORISH BEHAVIOR THAN ABOUT THE ENTIRE SENATE SHOWING IT IS PROPERLY SENSITIVE ON THE SUBJECT THIS IS OF COURSE THE SAME SENATE THAT CONTAINS TED KENNEDY WHO WALKED AWAY FROM CHAPPAQUIDDICK AND PALM BEACH IT'S ALSO THE SENATE OF CAROL MOSELEYBRAUN WHO MANAGED TO SQUELCH CHARGES OF SEXUAL HARASSMENT AGAINST HER OWN FORMER CAMPAIGN MANAGER AN EFFORT CHRONICLED IN DETAIL BY RUTH SHALIT IN THE LATEST ISSUE OF THE NEW REPUBLIC MR PACKWOOD IS BEING ASKED TO ATONE FOR MUCH MORE THAN HIS OWN SINS WHATEVER THOSE SINS NO ONE HAS ACCUSED HIM OF PUNISHING ANY WOMAN WHO RESISTED HIS ADVANCES THE ABUSE OF POWER THAT IS SUPPOSED TO BE AT THE HEART OF GENUINE SEXUAL HARASSMENT MOST OF HIS BOORISHNESS TOOK PLACE 12 OR EVEN 20 YEARS AGO WHEN STANDARDS WERE DIFFERENT AND OF COURSE THE CAMPAIGN FOR HIM TO RESIGN IS BEING LED BY POLITICAL OPPONENTS AND LIBERAL EDITORS WHO COULDN'T DEFEAT HIM AT THE POLLS IN A DOUBLE IRONY THE SAME LIBERALS WHO ASSERT THE RIGHT TO PRIVACY ON ABORTION DON'T SEEM TO MIND THE ETHICS COMMITTEE'S INVASION OF THE PACKWOOD DIARIES AND THE SAME FEMINISTS WHO HAILED MR PACKWOOD WHEN THEY NEEDED HIM TO PROTECT ABORTION RIGHTS IN THE 1980S HAVE BEEN HAPPY TO CUT HIM LOOSE NOW THAT ONE OF THEIR OWN IS IN THE WHITE HOUSE MAYBE MR PACKWOOD IS RESISTING AS HARD AS HE IS BECAUSE HE FEELS BETRAYED SEE RELATED LETTER LETTERS TO THE EDITOR NO RIGHT TO PRIVACY FOR SEN PACKWOOD WSJ NOV 16 1993 9311010079 YY93 MM11 9311160036 931116 MEXICO A CLOSEUP LOOK LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY DIANNE SOLIS HEDGING A PLEDGE MEXICO MAY DILUTE PRODUCTIVITYLINKED WAGE BOOSTS SEEKING TO ASSUAGE US CONCERNS THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL SEND JOBS SOUTH OF THE BORDER PRESIDENT SALINAS PROMISES TO SEEK HIGHER WAGES BY LINKING RAISES TO PRODUCTIVITY GAINS BUT THE OUTLOOK IS MURKY HIS AIDES ALSO WANT MEXICAN INDUSTRY TO LIMIT THE SIZE OF PAY INCREASES WHEN PRODUCTIVITY ADVANCEMENTS RESULT FROM NEW MACHINERY SO A HIGHLEVEL MEXICAN OFFICIAL SAYS RAISES MAY FOCUS ON TOTAL FACTOR PRODUCTIVITY WHICH DISTINGUISHES BETWEEN TECHNOLOGY AND LABOR THIS COULD DIMINISH WAGE INCREASES FOR SUCH WORKERS AS THE 45000 MEMBERS OF THE TELEPHONE UNION WHO NOW CAN EARN UP TO 40 ABOVE BASE PAY BY MEETING SUCH PRODUCTIVITY GOALS AS ANSWERING CALLS IN 10 SECONDS OR REPAIRING PHONES IN THREE DAYS EVEN WITH MODERN MACHINES IT TAKES A GIGANTIC HUMAN EFFORT TO RAISE PRODUCTIVITY ARGUES FRANCISCO HERNANDEZ THE TELEPHONE UNION'S LEADER WORKING MOTHERS GET TOPNOTCH BENEFITS BUT LACK DAYCARE FACILITIES MEXICAN WOMEN ARE ENTITLED TO 12 WEEKS OF PAID MATERNITY LEAVE THEIR JOBS ARE HELD FOR UP TO A YEAR AND THEY GET TWO DAILY BREAKS TO BREASTFEED THEIR BABIES ON THE JOB EMPLOYERS MUST PAY A TAX TO HELP FINANCE PUBLIC CARE OR PROVIDE THEIR OWN CENTERS GENERALLY ONLY THE LARGEST PROVIDE CHILDCARE INHOUSE MUJER A MUJER WOMAN TO WOMAN AN ADVOCACY GROUP IN MEXICO CITY LAUDS THE VERY HIGH QUALITY OF PUBLIC DAY CARE FOR WORKING MOMS' CHILDREN BUT THE GROUP SAYS DEMAND EXCEEDS AVAILABILITY SOME 400 STATERUN NURSERIES SERVE 54000 YOUNG CHILDREN BUT FIVE TIMES THAT NUMBER MAY NEED DAY CARE BY SOME COUNTS BORDERLESS UNIONS EMERGE TO CHALLENGE BORDERLESS USMEXICO COMPANIES COMMUNICATIONS AUTO WORKERS AND TEAMSTERS UNIONS ALSO HELP MEXICAN COUNTERPARTS SEEK BETTER CONTRACTS BUT COLLABORATION CAN BE TRICKY IN TIJUANA AUTHORITIES DETAINED 39 US CANADIAN AND DUTCH UNIONISTS FOR HELPING WORKERS AT A COATHANGER FACTORY OWNED BY BOSTONBASED CARLISLE PLASTICS TRY TO FORM AN INDEPENDENT UNION THE MEXICAN INTERIOR MINISTRY ALSO ACCUSES THE FOREIGNERS OF PROSELYTIZING AGAINST NAFTA WITHOUT GOVERNMENT PERMISSION SLEEP TIME LAST MONTH AS PRESIDENT SALINAS SIGNED HIS ANNUAL INFLATIONFIGHTING PACT WITH LABOR BUSINESS AND FARM GROUPS 93YEAROLD FIDEL VELASQUEZ HEAD OF THE MEXICAN WORKERS CONFEDERATION OR CTM KEPT NODDING OFF CRITICS SAY HE HAS BEEN INEFFECTIVE THROUGH MUCH OF THE SALINAS REGIME'S FIVE YEARS AS WAGES WERE HELD BELOW THE RISING COST OF LIVING ILLEGAL IMMIGRANTS CROSSING THE RIO GRANDE AT EL PASO TEXAS FACED SOME STEEP PRICEGOUGING LAST MONTH THANKS TO A BUILDUP OF US BORDER PATROL AGENTS THE PATROL'S TOURNIQUET FORCED THE PRICE OF INNERTUBE RIDES ACROSS THE RIVER TO SOAR BY 20 TIMES THE PREVIOUS 3 PER TRIP UNLIKE THE US MEXICO BANS USE OF REPLACEMENT WORKERS IN A STRIKE BUT THE GOVERNMENT DECLARES MANY STRIKES ILLEGAL OF 6200 PROPOSED STRIKES THROUGH AUGUST OF THIS YEAR ALL BUT 2 WERE AVERTED BY NEGOTIATIONS OR GOVERNMENT INTERVENTION NEW CAUSES TO DECLARE STRIKES ILLEGAL ARE DEVELOPED EVERY PRESIDENTIAL TERM SAYS EZEQUIEL GARCIA A MEXICAN METALWORKERS UNION OFFICIAL MORE OR LESS MORE THAN 25 OF MEXICO'S LABOR FORCE OR TWICE THE US FIGURE IS UNIONIZED BUT MOST UNIONS ARE DOMINATED BY THE GOVERNMENT INDEPENDENTUNION ORGANIZERS COMPLAIN OF HARSH TREATMENT INCLUDING FREQUENT FIRINGS MEXICAN LABOR IS CHEAP BUT NOT AS CHEAP AS CRITICS CLAIM CALIFORNIA UNION PEOPLE COMPLAIN ABOUT THE 58CENTSANHOUR MINIMUM WAGE IN MEXICO BUT MORE THAN 85 OF WORKERS EARN MORE THAN THAT THE AVERAGE 1992 MANUFACTURING WAGE WAS 235 AN HOUR IN MEXICO COMPARED WITH 1617 IN THE US THE US BUREAU OF LABOR STATISTICS SAYS THERE IS NO UNEMPLOYMENT INSURANCE BUT LAIDOFF WORKERS GET AT LEAST THREE TO SIXMONTHS SEVERANCE PAY VACATION PREMIUMS AT 125 OF USUAL PAY ARE REQUIRED AS ARE CHRISTMAS BONUSES EQUALLING AT LEAST 15 DAYS PAY MOST FIRMS MUST PROVIDE 10 OF TAXABLE INCOME FOR WORKER PROFIT SHARING THOUGH IT IS WIDELY BELIEVED WORKERS ARE SHORTCHANGED BECAUSE EMPLOYERS UNDERREPORT EARNINGS THE CTM PUSHES FOR TRIMMING THE WORK WEEK TO 40 HOURS FROM 48 AND FOR AN UNEMPLOYMENT FUND TO COVER WORKER TRAINING AND RELOCATION THE CHECKOFF MEXICO'S CENSUS BUREAU SAYS 7 OF CHILDREN AGED 12 TO 14 ARE WORKING PRESIDENT SALINAS DREW A STANDING OVATION FROM LEGISLATORS IN HIS RECENT STATEOFTHEUNION SPEECH WHEN HE VOWED STRONGER GOVERNMENT ACTION TO PROTECT THE HUMAN AND LABOR RIGHTS OF MEXICAN MIGRANT WORKERS IN THE US 9311160035 931116 WHO'S NEWS SASKATCHEWAN OIL & GAS CORP SASKATCHEWAN OIL & GAS CORP REGINA SASKATCHEWAN THIS CANADIAN OIL AND GAS PRODUCER NAMED FRANK PROTO 51 YEARS OLD PRESIDENT EFFECTIVE JAN 1 1994 THE COMPANY SAID MR PROTO WAS RECENTLY SENIOR VICE PRESIDENT OF ALBERTA ENERGY CO CALGARY ALBERTA HE SUCCEEDS THEODORE H RENNER 48 WHO LEFT IN JUNE TO PURSUE HIS OWN INTERESTS SASKOIL ADDED 9311160034 931116 BUSINESS BRIEF ZALE CORP PROFIT TOTALED 8207 MILLION DURING FISCAL SECOND PERIOD ZALE CORP DALLAS REPORTED NET EARNINGS OF 8207 MILLION FOR ITS FISCAL SECOND QUARTER ENDED SEPT 30 COMPARED WITH A NET LOSS OF 362 MILLION A YEAR EARLIER THE LATEST QUARTER'S RESULTS INCLUDE A GAIN OF 11 BILLION FROM THE DISCHARGE OF DEBT AFTER ZALE THE NATION'S LARGEST JEWELRY RETAILER EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION JULY 30 THE RESULTS ALSO INCLUDE A CHARGE OF 2462 MILLION CONNECTED WITH REORGANIZATION AND RESTRUCTURING PERSHARE FIGURES WERE AVAILABLE ONLY FOR THE TWO MONTHS AFTER EMERGENCE FROM BANKRUPTCYLAW PROTECTION FOR THAT PERIOD ZALE POSTED A NET LOSS OF 41 MILLION OR 12 CENTS A SHARE SALES FOR THE QUARTER FELL 96 TO 1802 MILLION FROM 1993 MILLION BUT ZALE NOTED THAT IT CLOSED 175 STORES THIS YEAR IN ITS RESTRUCTURING SALES AT STORES OPEN A YEAR OR MORE ROSE 06 ZALE'S SHARES CLOSED AT 1025 DOWN 125 CENTS OR 12 IN NASDAQ STOCK MARKET TRADING 9311160033 931116 BUSINESS BRIEF TELECOMMUNICATIONS INC TAXES CITED FOR NET LOSS OF 55 MILLION IN 3RD PERIOD TELECOMMUNICATIONS INC REPORTED A 55 MILLION NET LOSS FOR THE THIRD QUARTER REFLECTING HIGHER TAXES AND REGULATORY COSTS BUT ANALYSTS NOTED THE COMPANY SHOWED STRONG GROWTH IN CASH FLOW AND REVENUE FOR THE QUARTER THE CABLE TELEVISION OPERATOR IN ENGLEWOOD COLO REPORTED A NET LOSS OF 55 MILLION OR 13 CENTS A SHARE COMPARED WITH NET INCOME OF 63 MILLION OR 13 CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE INCREASED 17 TO 104 BILLION FROM 896 MILLION A YEAR EARLIER THE COMPANY SAID EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION A CLOSELY WATCHED MEASURE OF CABLE TELEVISION COMPANY PERFORMANCE INCREASED 12 TO 470 MILLION TELECOMMUNICATIONS THE LARGEST US CABLE OPERATOR SAID THIRDQUARTER EARNINGS WERE HURT BY HIGHER FEDERAL INCOME TAXES AND RATE ROLLBACKS IMPLEMENTED IN SEPTEMBER AS PART OF THE 1992 CABLE ACT THE COMPANY DID NOT RETURN CALLS TO OUTLINE THE ADVERSE AFFECTS OF THE RATE ROLLBACKS 9311160032 931116 BUSINESS BRIEF SIFCO INDUSTRIES INC AVIATION INDUSTRY SUPPLIER POSTS LOSS FOR QUARTER YEAR SIFCO INDUSTRIES INC REPORTED A NET LOSS OF 76 MILLION FOR THE FISCAL FOURTH QUARTER AND A 91 MILLION LOSS FOR THE YEAR FOR THE QUARTER ENDED SEPT 30 SIFCO REPORTED A NET LOSS OF 150 A SHARE ON REVENUE OF 118 MILLION A YEAR EARLIER IT HAD A LOSS OF 13 MILLION OR 26 CENTS A SHARE ON REVENUE OF 129 MILLION SIFCO TOOK A ONETIME PRETAX CHARGE OF 65 MILLION OR 129 A SHARE FOR A MAJOR RESTRUCTURING OF ITS FORGE GROUP WHICH MAKES PARTS FOR AIRFRAMES AND AIRCRAFT ENGINES FOR THE YEAR THE CLEVELAND OHIO MAKER OF METALWORKING PRODUCTS FOR THE AVIATION INDUSTRY HAD A LOSS OF 180 SHARE COMPARED WITH A LOSS OF 440000 OR NINE CENTS A SHARE A YEAR EARLIER SALES WERE 519 MILLION COMPARED WITH 577 MILLION A YEAR EARLIER THE COMPANY SAID ITS FORGINGS BUSINESS HAS BEEN SUFFERING IN LIGHT OF THE CONTINUING GLOBAL RECESSION IN THE AIRLINE AND AEROSPACE MARKETS SIFCO SAID IT WILL TAKE COSTCUTTING AND STREAMLINING MEASURES OVER THE NEXT SIX TO NINE MONTHS 9311160030 931116 BUSINESS BRIEF HAYES MICROCOMPUTER PRODUCTS MODEM MAKER TANDY AGREE TO SETTLE PATENT LAWSUIT HAYES MICROCOMPUTER PRODUCTS INC SAID IT AND TANDY CORP AGREED TO SETTLE A PATENT LAWSUIT THAT HAYES FILED AGAINST THE FORT WORTH TEXAS CONSUMER ELECTRONICS RETAILER HAYES A NORCROSS GA MAKER OF COMPUTER MODEMS DIDN'T DISCLOSE ANY TERMS TANDY DECLINED TO COMMENT THE SUIT FILED IN JUNE IN FEDERAL COURT IN ATLANTA ACCUSED TANDY OF COPYING A MODEM TECHNOLOGY THAT HAYES PATENTED IN 1985 MODEMS ALLOW PERSONAL COMPUTERS TO COMMUNICATE WITH OTHER COMPUTERS VIA TELEPHONE LINES TANDY SOLD ITS PC MANUFACTURING OPERATIONS TO AST RESEARCH INC IN JULY HAYES'S SUIT ALSO NAMED 10 SMALLER COMPANIES AS DEFENDANTS ONE OF WHICH HAS SETTLED WITH IT 9311160029 931116 BUSINESS BRIEF MAXUM HEALTH CORP AMERICAN STOCK EXCHANGE TO DELIST COMPANY NOV 26 MAXUM HEALTH CORP SAID ITS STOCK WON'T BE TRADED ON THE AMERICAN STOCK EXCHANGE AFTER NOV 26 BECAUSE THE COMPANY NO LONGER MEETS THE EXCHANGE'S LISTING REQUIREMENTS MAXUM IS TRYING TO RECOVER FROM PROBLEMS IN ITS CORE BUSINESS WHICH IS TO PROVIDE MEDICAL DIAGNOSTIC IMAGING SERVICES THE COMPANY IS IN TALKS WITH CREDITORS AND CHARACTERIZED THOSE TALKS AS COOPERATIVE BUT IT SAID NO FINAL AGREEMENTS HAVE BEEN REACHED GLENN P CATO THE COMPANY'S CHIEF FINANCIAL OFFICER SAID REASONS FOR THE DELISTING INCLUDE THE COMPANY'S NEGATIVE STOCKHOLDERS' EQUITY AND ITS HISTORY OF OPERATING LOSSES AFTER THE DELISTING THE STOCK WILL TRADE OVER THE COUNTER 9311160028 931116 BUSINESS BRIEF TENNECO INC CUMMINS STOCK TO BE USED TO TRIM PENSION LIABILITY TENNECO INC SAID IT PLANS TO TRANSFER 32 MILLION SHARES OF COMMON STOCK IT OWNS OF CUMMINS ENGINE INC TO A TRUST THAT FUNDS PENSION PLANS SPONSORED BY HOUSTONBASED TENNECO AND ITS SUBSIDIARIES THE SHARES WILL BE CONTRIBUTED TO A PENSION PLAN SPONSORED BY TENNECO'S CASE CORP FOR ITS HOURLY EMPLOYEES WHICH IS UNDERFUNDED BY 260 MILLION CUMMINS STOCK ROSE 25 CENTS TO 50 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PUTTING THE VALUE OF THE TRANSFER AT 160 MILLION THAT AMOUNT MAY CHANGE DEPENDING ON THE VALUE OF THE STOCK WHEN THE TRANSFER OCCURS WHILE THE US DEPARTMENT OF LABOR HAS INDICATED IT WILL APPROVE THE TRANSACTION THAT APPROVAL IS SUBJECT TO A 35DAY WAITING PERIOD TENNECO BOUGHT THE CUMMINS STOCK FOR INVESTMENT PURPOSES IN 1990 DANA G MEAD TENNECO'S PRESIDENT AND CHIEF OPERATING OFFICER WILL CONTINUE TO SIT ON THE CUMMINS BOARD AFTER THE TRANSFER 9311160027 931116 BUSINESS BRIEF MA HANNA CO AGREEMENT IS SET TO SELL UNIT TO A DIVISION OF BRIDGESTONE MA HANNA CO SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SELL ITS ELASTOMERICMEMBRANE ROOFINGMATERIAL BUSINESS TO FIRESTONE BUILDING PRODUCTS CO A DIVISION OF JAPAN'S BRIDGESTONE CORP TERMS WEREN'T DISCLOSED THE COMPANIES SAID THEY PLAN TO CLOSE THE SALE IN THE FIRST QUARTER OF 1994 THE OPERATION TO BE SOLD BASED IN KINGSTREE SC HAS A STAFF OF 200 MA HANNAH A CLEVELAND OHIO SPECIALTYCHEMICALS COMPANY SAID IT WILL INCUR A FORTHQUARTER ONETIME CHARGE OF 30 MILLION 145 A SHARE ASSOCIATED WITH THE SALE ACCORDING TO PAUL MINEART PRESIDENT OF FIRESTONE BUILDING PRODUCTS THE COMPANY PLANS TO MAINTAIN PRODUCTION AT THE PRESENT LOCATION WHILE SEEKING NEW OPPORTUNITIES WITHIN AND OUTSIDE THE COMMERCIAL ROOFING MARKET FIRESTONE BUILDING PRODUCTS IS BASED IN CARMEL IND 9311160026 931116 BUSINESS BRIEF CROWNX INC GAIN EXPECTED FROM SALE OF BEUTEL GOODMAN STAKE CROWNX INC SAID IT WILL RECORD A GAIN OF ABOUT 243 MILLION CANADIAN DOLLARS US185 MILLION FROM THE SALE OF ITS 40 STAKE IN BEUTEL GOODMAN & CO A TORONTO INVESTMENT COUNSELING CONCERN THE PRICE OF THE TRANSACTION WASN'T DISCLOSED HOWEVER CROWNX CARRIED THE STAKE ON ITS BOOKS AT C152 MILLION SUGGESTING THE ASSET WAS SOLD FOR ABOUT C395 MILLION CROWNX SAID IT WILL USE THE PROCEEDS TO REPAY THE C35 MILLION OF BANK DEBT IT USED TO HELP FUND THE RECENT REPURCHASE OF SOME PREFERRED SHARES THE BUYER OF THE ASSET WASN'T DISCLOSED THE REMAINING 60 OF BEUTEL GOODMAN IS HELD BY ITS EMPLOYEES CROWNX SAID IT SOLD THE STAKE BECAUSE IT NO LONGER FIT CROWNX'S STRATEGIC DIRECTION CROWNX BASED IN MARKHAM ONTARIO HAS INTERESTS IN HEALTHCARE FACILITIES AND LIFE INSURANCE 9311160025 931116 ECONOMY SHAWMUT'S PLAN FOR ACQUISITION REJECTED BY FED CONCERN ABOUT COMPLIANCE WITH FAIRLENDING LAW IS CITED IN BOARD'S VOTE BY KENNETH H BACON AND GARY PUTKA STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL RESERVE BOARD REJECTED THE APPLICATION OF SHAWMUT NATIONAL CORP TO ACQUIRE NEW DARTMOUTH BANK IN MANCHESTER NH BECAUSE OF CONCERNS ABOUT THE HARTFORD CONN BANK'S COMPLIANCE WITH FAIRLENDING LAWS IT WAS THE FIRST TIME THE FED HAS CITED THESE LAWS IN REJECTING AN ACQUISITION BY A BANKHOLDING COMPANY AND THE UNUSUAL ACTION IS ANOTHER INDICATION OF THE TOUGHER STAND BEING TAKEN BY BANK REGULATORS AND THE JUSTICE DEPARTMENT AGAINST DISCRIMINATORY LENDING PRACTICES IN ITS ORDER THE FED CITED CONCERNS ABOUT SHAWMUT'S COMPLIANCE WITH THE EQUAL CREDIT OPPORTUNITY ACT WHICH BARS LENDING BIAS AND THE HOME MORTGAGE DISCLOSURE ACT WHICH REQUIRES BANKS TO FILE ACCURATE AND TIMELY REPORTS ON MORTGAGE LOANS AND REJECTIONS BY RACE BUT A FED BOARD MEMBER SAID THE PRIMARY REASON THE AGENCY TURNED DOWN THE APPLICATION IS THAT THE JUSTICE DEPARTMENT IS INVESTIGATING POSSIBLE EVIDENCE THAT SHAWMUT MORTGAGE CO A SUBSIDIARY MAY BE GUILTY OF LENDING BIAS A STUDY BY THE FEDERAL RESERVE BANK OF BOSTON FOUND REASON TO SUSPECT A PATTERN OF LENDING DISCRIMINATION BY THE SHAWMUT MORTGAGE UNIT IN BOSTON AND THE FED REFERRED THE CASE TO THE JUSTICE DEPARTMENT ALTHOUGH THE DEPARTMENT HASN'T COMPLETED ITS INVESTIGATION THE FACT THAT THE CENTRAL BANK TURNED DOWN SHAWMUT'S APPLICATION SUGGESTS THAT FED MEMBERS BELIEVE THE JUSTICE DEPARTMENT WILL FILE CHARGES SHAWMUT NEW ENGLAND'S THIRDLARGEST BANKING COMPANY IS IN THE MIDST OF A STRING OF ACQUISITIONS BUT THE FED'S ACTION MAKES IT CLEAR THAT THE BANK'S EXPANSION WILL BE DELAYED UNTIL THE CONCERNS ABOUT LENDING BIAS ARE CLEARED UP THE FED IS ALSO CONSIDERING A SHAWMUT APPLICATION TO PURCHASE PEOPLES BANCORP IN WORCESTER MASS AND SHAWMUT RECENTLY SAID IT PLANS TO ACQUIRE GATEWAY FINANCIAL CORP A CONNECTICUT THRIFT ROBERT GUENTHER A SPOKESMAN FOR SHAWMUT NATIONAL SAID WE'RE EXTREMELY DISAPPOINTED NOTWITHSTANDING THE OPINION WE ARE EXTREMELY PROUD OF OUR MINORITY LENDING UNTIL THE FED'S DECISION IS REVIEWED MR GUENTHER SAID THE BANK WILL HAVE NO FURTHER COMMENT ANALYSTS SAID THE TOUGHER FEDERAL STANCE COULD DERAIL OTHER PENDING ACQUISITIONS IN THE NORTHEAST ALONE SHAWMUT AND OTHER BIG REGIONAL BANKS ARE SEEKING REGULATORY APPROVAL FOR EIGHT OTHER ACQUISITIONS TOTALING ABOUT 1 BILLION THIS HAS MAJOR REPERCUSSIONS FOR THE CONSOLIDATION OF THE INDUSTRY SAID GERARD CASSIDY OF HANCOCK INSTITUTIONAL EQUITY SERVICES IF OTHERS GET CAUGHT IN THIS WEB DEALS WILL UNFOLD THOMAS BROWN AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SAID I'M ABSOLUTELY SHOCKED I'M NOT SURPRISED IT'S AN ISSUE BUT I'M SURPRISED THEY WOULD DENY SHAWMUT THE ABILITY TO STRENGTHEN AND IMPROVE THE BANKING INDUSTRY IN NEW ENGLAND THROUGH CONSOLIDATION NEWS OF THE FED'S DECISION CAME OUT AFTER THE MARKET HAD CLOSED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHAWMUT CLOSED AT 21125 UP 125 CENTS THE FED'S ACTION TAKEN ON A 33 VOTE EFFECTIVELY BLOCKED THE ACQUISITION BECAUSE APPROVAL REQUIRES A MAJORITY CHAIRMAN ALAN GREENSPAN VICE CHAIRMAN DAVID MULLINS AND GOV LAWRENCE LINDSEY THE BOARD'S FAIRLENDING SPECIALIST VOTED AGAINST THE ACQUISITION GOVS WAYNE ANGELL EDWARD KELLEY AND SUSAN PHILLIPS VOTED IN FAVOR OF THE TRANSACTION WHILE GOV JOHN LAWARE A FORMER SHAWMUT CHAIRMAN ABSTAINED BRUCE MARKS EXECUTIVE DIRECTOR OF THE UNION NEIGHBORHOOD ASSISTANCE CORP A FAIRLENDING ADVOCACY GROUP SAID THE FED IS MAKING AN EXAMPLE OUT OF SHAWMUT DESPITE THE FACT THAT THEY HAVE BEEN THE BEST LENDER TO LOW AND MODERATEINCOME COMMUNITIES OVER THE PAST YEAR HE SAID THEY HAVE DEVELOPED THE BEST MORTGAGE PRODUCT IN THE COUNTRY FOR WORKING PEOPLE JUST YESTERDAY NEIGHBORHOOD REINVESTMENT CORP A NATIONAL LOWINCOME HOUSING GROUP ANNOUNCED THAT SHAWMUT HAD CONTRIBUTED 100000 TO A FUND TO ADVANCE LOWINCOME HOMEOWNERSHIP ANOTHER PENDING ACQUISITION THAT COULD BE IN JEOPARDY ANALYSTS SAID IS FLEET FINANCIAL GROUP INC'S PROPOSAL TO PURCHASE STERLING BANCSHARES CORP OF WALTHAM MASS FOR ABOUT 125 MILLION FLEET HAS BEEN A TARGET OF COMMUNITY ACTIVISTS' GROUPS ON FAIR LENDING AND HAS FACED SEVERAL LAWSUITS RELATED TO HIGHINTEREST LOANS TO LOWINCOME CUSTOMERS BUT FLEET COULD ENCOUNTER LESS TROUBLE UNLIKE SHAWMUT THERE IS NO PUBLIC INDICATION THAT FLEET IS BEING INVESTIGATED BY THE JUSTICE DEPARTMENT 9311160024 931116 BUSINESS BRIEF TRANS WORLD AIRLINES FARE WARS REORGANIZATION CITED IN THIRDPERIOD LOSS TRANS WORLD AIRLINES SAID INTERNATIONAL FARE WARS AND A SLOWERTHANEXPECTED EMERGENCE FROM BANKRUPTCY PROCEEDINGS HELPED GENERATE A THIRDQUARTER LOSS OF 617 MILLION ON AN OPERATING BASIS A SLIMMEDDOWN TWA WAS ABLE TO NEARLY HALVE ITS LOSSES FROM THE 1992 PERIOD BY CUTTING EXPENSES BUT A RAFT OF CHARGES AND CREDITS OBSCURED THE PROGRESS MADE BY THE LONGSTRUGGLING CARRIER BASED IN MOUNT KISCO NY TWA WHICH EMERGED FROM BANKRUPTCY PROTECTION EARLIER THIS MONTH POSTED A PROFIT OF 802 MILLION IN THE YEAREARLIER PERIOD THAT QUARTER INCLUDED A 1504 MILLION PRETAX GAIN MOSTLY FROM THE SALE OF AIRPORT GATES AND SLOTS TO AMERICAN AIRLINES THE COMPANY DOESN'T HAVE ANY PUBLICLY TRADED COMMON SHARES THIRDQUARTER REVENUE DROPPED NEARLY 16 TO 8709 MILLION FROM 103 BILLION THE COMPANY BLAMED THE DROP IN PART ON THE STIGMA ASSOCIATED WITH ITS BANKRUPTCY PROCEEDINGS TWA SAID ITS OPERATING EXPENSES DROPPED NEARLY 18 FOR THE THIRD QUARTER AS A RESULT OF EMPLOYEE CONCESSIONS AND CUTS IN ITS FLIGHT SCHEDULE 9311160023 931116 INTERNATIONAL CLINTON CONSIDERS RATING DOWNGRADE FOR RUSSIA LOANS BY WILLIAM MURRAY SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING WHETHER TO LOWER ITS CREDIT RATING FOR RUSSIA WHEN ASSESSING THE ONBUDGET COSTS OF OFFICIAL US LOANS IN FISCAL 1995 AN ANALYSIS OF CONDITIONS IN RUSSIA SUGGESTS A DOWNGRADE WOULD BE WARRANTED ACCORDING TO ADMINISTRATION SOURCES WHILE POSTCOLD WAR POLITICAL AND SECURITY CONSIDERATIONS ARGUE IN FAVOR OF A MORE LENIENT POSTURE THE ADMINISTRATION IS LIKELY TO DECIDE IN RUSSIA'S FAVOR BUT SUCH A DECISION COULD BE CONTROVERSIAL ON SEVERAL FRONTS SOME LAWMAKERS EAGER TO CONTROL SPENDING MAY CHARGE THAT SUCH LENIENCY WOULD UNDERMINE RECENT BUDGETARY REFORMS CRITICS OF FOREIGN AID MAY BE ENCOURAGED TO RENEW CLAIMS THAT CREDITS TO RUSSIA ARE SIMPLY DONATIONS FROM US TAXPAYERS OTHER NATIONS MAY BE PROMPTED TO SEEK SIMILAR LENIENCY THREATENING THE CREDIBILITY OF THE ENTIRE RATING EXERCISE AT ISSUE IS THE SECRETIVE INTERAGENCY COUNTRY RISK ASSESSMENT SYSTEM WHICH SETS SOVEREIGNRISK RATINGS FOR FEDERAL LENDING AGENCIES THE RATINGS ARE USED TO DETERMINE HOW MUCH MONEY MUST BE SET ASIDE ON THE FEDERAL BUDGET TO INSULATE TAXPAYERS AGAINST POSSIBLE DEFAULTS ACCORDING TO ADMINISTRATION OFFICIALS A CUT IN RUSSIA'S ALREADY WEAK RATING WOULD FORCE US LENDING AGENCIES TO CURTAIL LOANS AND GUARANTEES OR TO SEEK SUBSTANTIAL INCREASES IN BUDGET ALLOCATIONS TO COVER HIGHER LOANLOSS RESERVES UNDER US DEFICITREDUCTION RULES SUCH INCREASES WOULD HAVE TO BE OFFSET BY CUTS IN OTHER SPENDING PROGRAMS THE US CONTRIBUTION TO AN INTERNATIONAL LOAN PACKAGE FOR RUSSIA AND ITS FISCAL 1995 ALLOCATIONS HAVEN'T BEEN FIXED THOUGH THE US EXPORTIMPORT BANK IS CONSIDERING LOANS AND GUARANTEES OF 2 BILLION FOR SUPPLYING OILFIELD SERVICES AND EQUIPMENT TO RUSSIA OTHER US LOANS MAY COME FROM THE AGRICULTURE DEPARTMENT'S COMMODITY CREDIT CORP FOR FOOD AND OTHER FARM PURCHASES THE RISKASSESSMENT SYSTEM WHICH IS CHAIRED BY THE WHITE HOUSE'S OFFICE OF MANAGEMENT AND BUDGET DOESN'T PUBLICLY DISCLOSE ITS FINDINGS OR DELIBERATIONS IT ASSIGNS RATINGS FROM 11 CATEGORIES RANGING FROM A TO F DOUBLEMINUS OFFICIALS SAY RUSSIA'S RATING FOR FISCAL 1994 WHICH STARTED OCT 1 IS E THE SEVENTHHIGHEST CATEGORY AN E RATING REQUIRES LOANLOSS RESERVES THAT COULD TOTAL AS MUCH AS 50 OF A CREDIT ISSUED BUT THE PRESENT RATING PERMITS MEDIUMTERM LENDING BY THE EXPORTIMPORT BANK AND OTHER FEDERAL AGENCIES A MOVE NEXT YEAR TO EMINUS THE NEXTLOWER LEVEL WOULD REQUIRE GOVERNMENT LENDERS TO SET ASIDE AN ADDITIONAL 10 OF EACH TRANSACTION'S TOTAL AMOUNT FOR POTENTIAL LOANLOSSES THE TREASURY AND STATE DEPARTMENTS WHICH ARE SPEARHEADING INTERNATIONAL EFFORTS TO BOLSTER THE YELTSIN GOVERNMENT WANT THE RATING TO REMAIN UNCHANGED ACCORDING TO OFFICIALS FAMILIAR WITH CURRENT DELIBERATIONS THEY ARE ARGUING THAT EXTERNAL FINANCIAL FLOWS MUST BE MAINTAINED TO SECURE DEEPER POLITICAL AND ECONOMIC CHANGE IN RUSSIA PROPONENTS OF A CUT SUGGEST CAUTION IS NEEDED GIVEN POLITICAL UNCERTAINTIES THE YELTSIN GOVERNMENT'S SPOTTY REFORM RECORD AND QUESTIONS SURROUNDING THE COUNTRY'S ABILITY TO SERVICE ITS DEBT 9311160022 931116 BROOKE GROUP SEEKS BACKING FROM COURT ON FINAL RIGHTS PAYOUT NEW YORK BROOKE GROUP LTD SAID IT FILED SUIT IN THE DELAWARE COURT OF CHANCERY SEEKING A DECLARATORY JUDGMENT AFFIRMING THAT ITS DECISION TO PAY HOLDERS OF CERTAIN RIGHTS 36 CENTS A RIGHT WILL END ITS OBLIGATION TO THE HOLDERS THE TWO PARTIES ARE INVOLVED IN A SEPARATE COURT ACTION IN WHICH THE RIGHTS HOLDERS HAVE SUED BROOKE GROUP PROTESTING THE PAYOUT THE RIGHTS HOLDERS ALSO ARE SUING TO REVERSE THE COMPANY'S RECENT SPINOFF OF A MINORITY INTEREST IN SKYBOX INTERNATIONAL INC A DURHAM NC TRADINGCARD COMPANY ON THE BASIS THAT BROOKE IS INSOLVENT BROOKE HAS ASKED THE COURT TO DISMISS THE RIGHTS HOLDERS' ACTIONS AN INVESTOR FAMILIAR WITH THE COURT PROCEEDINGS INDICATED THAT ATTORNEYS FOR THE RIGHTS HOLDERS WERE PERPLEXED BY BROOKE'S ACTIONS THE INVESTOR SAID BROOKE ALREADY IS SEEKING TO HAVE ITS DISTRIBUTION VALIDATED IN THE INITIAL SUIT BY SEEKING A DISMISSAL OF THE RIGHTS HOLDERS' CHARGES BROOKE SAID IT NEEDED TO FILE A SEPARATE ACTION BECAUSE IT HAD NOT FILED A FORMAL COUNTERCLAIM IN THE RIGHTS HOLDERS' SUIT THE DISPUTE STEMS FROM A 1990 MERGER IN WHICH BROOKE ISSUED CONTINGENT VALUE RIGHTS TO ITS SHAREHOLDERS THAT ESSENTIALLY GUARANTEED ITS SHARES WOULD BE TRADING AT ABOUT 19 A SHARE BY NOVEMBER 1993 WHEN BROOKE SHARES FAILED TO REACH THAT PRICE THE COMPANY SPUN OFF A MINORITY INTEREST OF ITS SKYBOX UNIT AS A DIVIDEND SIGNIFICANTLY REDUCING ITS OBLIGATION TO RIGHTS HOLDERS BROOKE SHARES CLOSED YESTERDAY AT 2625 DOWN 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BROOKE SAID IT INTENDS TO DISTRIBUTE THE 36 CENTS TO RIGHTS HOLDERS ON DEC 9 9311160021 931116 MARTECH USA INC'S SUIT ALLEGING SLANDER IS DISMISSED BY JUDGE SAN FRANCISCO A FEDERAL JUDGE HAS DISMISSED A SLANDER SUIT BROUGHT BY MARTECH USA INC AGAINST A FORMER SUBCONTRACTOR WHO HAS ALLEGED THAT HE PAID KICKBACKS TO A MARTECH EMPLOYEE AMONG OTHER THINGS JUDGE FERN SMITH ALSO STATED IN THE RULING THAT MARTECH HAS IGNORED BOTH THE APPROPRIATE SUBSTANTIVE AND PROCEDURAL LAW OF THIS CIRCUIT SHE THREATENED TO IMPOSE SIGNIFICANT SANCTIONS AGAINST THE COMPANY AND ITS ATTORNEYS IF IT CONTINUES TO DO SO THE RULING IS ANOTHER BLOW TO THE ENVIRONMENTAL CLEANUP AND CONSTRUCTION COMPANY MARTECH BASED IN ANCHORAGE ALASKA HAS BEEN STRUGGLING SINCE A DISCLOSURE EARLIER THIS MONTH OF PROBES BY FEDERAL PROSECUTORS AND MILITARY INVESTIGATORS INTO POSSIBLE VIOLATIONS OF ENVIRONMENTAL LAWS AND POSSIBLE CONTRACT FRAUD ITS STOCK WHICH HAS FALLEN 50 SINCE EARLY THIS MONTH CLOSED AT 375 ON THE NEW YORK STOCK EXCHANGE YESTERDAY DOWN 125 CENTS BENJAMIN C TISDALE MARTECH'S CHAIRMAN AND CHIEF EXECUTIVE DECLINED TO COMMENT ON THE JUDGE'S RULING THE COMPANY HAS MAINTAINED THAT IT HAS DONE NOTHING WRONG AND HAS BLAMED MANY OF THE ALLEGATIONS AGAINST IT ON DISGRUNTLED FORMER EMPLOYEES AND SUBCONTRACTORS IT HAS SPECIFICALLY DENIED EVER RECEIVING ANY KICKBACKS IT HAS MOUNTED A LEGAL ATTACK ON ITS CRITICS THE CENTERPIECE OF WHICH IS TWO SLANDER SUITS FILED IN JUDGE SMITH'S COURT JUDGE SMITH'S RULING DISMISSES ONE OF THOSE SLANDER SUITS WHICH WAS FILED IN MARCH AGAINST ROBERT SMITH THE FORMER MARTECH SUBCONTRACTOR MARTECH STILL HAS A SEPARATE SLANDER SUIT PENDING AGAINST MR SMITH AND SEVERAL FORMER MARTECH EMPLOYEES HOWEVER JUDGE SMITH LAST YEAR DISMISSED SEVERAL OF THAT SUIT'S MAIN CLAIMS 9311160020 931116 TECHNOLOGY BRIEF LOTUS DEVELOPMENT CORP SOFTWARE CONCERN TO WORK ON MCCAW WIRELESS SETUPS LOTUS DEVELOPMENT CORP CAMBRIDGE MASS AND MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH SAID THEY WILL WORK TOGETHER TO PROVIDE WIRELESS COMPUTING PRODUCTS BASED ON AN EMERGING STANDARD FOR TRANSMITTING COMPUTER DATA OVER CELLULAR PHONE LINES LOTUS PUSHING INTO THE MARKET FOR SOFTWARE PRODUCTS THAT WORK ON NEW WIRELESS COMPUTER DEVICES DISCLOSED ITS ENDORSEMENT OF THE MCCAW CELLULAR DIGITAL DATA STANDARD AT THE COMDEX TRADE SHOW IN LAS VEGAS SEPARATELY LOTUS AND INTERNATIONAL BUSINESS MACHINES CORP SAID THEY HAVE BROADENED AN EXISTING WORLDWIDE MARKETING SALES AND DEVELOPMENT RELATIONSHIP CENTERING ON IBM'S OS/2 OPERATING SOFTWARE 9311160019 931116 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED NOV 12 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER LOS ANGELES COUNTY ADAMS & GRAND COMPLEX INC WILL REDEEM ON DEC 15 1993 90000 PRINCIPAL AMOUNT OF ITS 475 LEASE RENTAL BONDS DUE DEC 15 2000 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE SWV REALTY CORP WILL REDEEM ON JAN 1 1994 ITS 825 FIRST MORTGAGE HOUSING ASSISTANCE REVENUE BONDS DUE JAN 1 2009 MANUFACTURERS & TRADERS TRUST CO BUFFALO NY IS SUCCESSOR TRUSTEE 9311160018 931116 CREDIT MARKETS MARRIOTT AND CHINESE AGENCY ANNOUNCE ISSUES WHILE PRICE OF 30YEAR TREASURY BONDS SLIPS BY LESLIE SCISM AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BONDHOLDERS' TOLERANCE WILL BE TESTED LATER THIS MONTH WHEN MARRIOTT INTERNATIONAL TRIES TO SELL BONDS EVEN AS A LAWSUIT FILED BY DISGRUNTLED INVESTORS IN THE FORMER MARRIOTT CORP IS OUTSTANDING AND MANY INVESTORS ARE PREPARED TO TAKE THEIR CHANCES WITH AN ISSUER THEY HAVE NO EXPERIENCE WITH GUANGDONG INTERNATIONAL TRUST & INVESTMENT A CHINESE ECONOMICDEVELOPMENT AGENCY IT EXPECTS UNDERWRITERS TO PRICE 150 MILLION OF 10YEAR YANKEE BONDS AS EARLY AS TODAY MEANWHILE IN A SIGN THAT THE BOND MARKETS MAY BE RECOVERING TREASURY SECURITIES WEATHERED MORE NEWS OF A STRONGER ECONOMY MOST ENDED THE DAY LITTLE CHANGED THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/16 POINT OR MORE THAN 625 CENTS FOR EACH 1000 FACE VALUE TO 101 6/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE WAS UNCHANGED AT 615 MARRIOTT INTERNATIONAL FILED A REGISTRATION STATEMENT TO ISSUE UP TO 150 MILLION OF 10YEAR DEBT SOME BONDHOLDERS SAY THEY WON'T TOUCH IT STILL ANGRY THAT THE VALUE OF THE COMPANY'S BONDS PLUMMETED WHEN MANAGEMENT DECIDED LAST YEAR TO SPLIT MARRIOTT CORP INTO TWO CONCERNS MARRIOTT INTERNATIONAL AND HOST MARRIOTT CORP BUT MARRIOTT APPEARS TO BE TACKLING THE PROBLEM HEADON THE PLANNED ISSUE INCLUDES AN UNUSUAL PROVISION IN WHICH INVESTORS CAN FORCE MARRIOTT TO BUY BACK THE BONDS UNDER CERTAIN CIRCUMSTANCES THEY INCLUDE A CHANGE OF CONTROL AND A RATING DECLINE ACCORDING TO A PROSPECTUS MARRIOTT CORP WAS DIVIDED ON OCT 8 INTO MARRIOTT INTERNATIONAL WHICH PROVIDES LODGING AND SERVICES AND HOST MARRIOTT WHICH OWNS REAL ESTATE AND CONCESSION OPERATIONS MOST OF THE OLD COMPANY'S DEBT OVER 1 BILLION WAS PLACED WITH HOST MARRIOTT WHICH IS SEEN AS THE WEAKER COMPANY THE BREAKUP ANNOUNCED IN OCTOBER 1992 INFURIATED INVESTORS PROMPTED MULTIPLE SUITS AND ULTIMATELY LED THE COMPANY TO SWAP THE OUTSTANDING BONDS FOR ONES WITH SLIGHTLY SWEETENED TERMS THE COMPANY FACES A SUIT CONTENDING THAT MARRIOTT SHOULD HAVE DISCLOSED ITS BREAKUP PLAN BEFORE SELLING TWO BOND ISSUES LAST YEAR THE BAD TASTE LINGERS AMONG MANY INVESTORS IF THAT PLACE DOWN UNDER FREEZES OVER IS WHEN BARBARA KENWORTHY A PORTFOLIO MANAGER FOR DREYFUS SAID SHE WOULD BUY THE NEW ISSUE REGARDLESS OF RESTRICTIVE COVENANTS OR OTHER PROTECTIONS THESE GUYS HAVE SHOWN THEIR WHOLE DESIRE IS TO GET AROUND PROTECTIVE COVENANTS MS KENWORTHY SAID SO I WOULDN'T TRUST THEM EVER MARRIOTT OFFICIALS DECLINED TO TALK ABOUT THE ISSUE'S PROSPECTS LEHMAN BROTHERS THE LEAD UNDERWRITER EXPECTS TO PRICE IT AFTER THANKSGIVING SOME INVESTORS ARE WILLING TO GIVE MARRIOTT A CHANCE ROBERT AUWAERTER A PORTFOLIO MANAGER WITH THE VANGUARD GROUP SAID HE WOULD MAKE HIS DECISION AFTER STUDYING THE PROTECTIONS SPELLED OUT IN THE PROSPECTUS GEOFFREY KURINSKY SENIOR VICE PRESIDENT AT MFS ASSET MANAGEMENT GROUP SAID HE WOULD CONSIDER BUYING IF THE BONDS ARE PRICED 05 PERCENTAGE POINT ABOVE THAT OF SIMILARLY RATED CORPORATE DEBT AND CARRY RESTRICTIVE COVENANTS MR HOLMES THE SALOMON BROTHERS HIGHYIELD STRATEGIST NOTED THAT THE ISSUE TO BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES COMES FROM THE FINANCIALLY STRONGER LESSLEVERAGED HALF OF THE OLD MARRIOTT A SINGLEA RATING IS EXPECTED THERE MAY BE A FEW WHO WILL BOYCOTT BUT ITS SALE SHOULDN'T BE A PROBLEM MR HOLMES SAID INDEED TRADE IS BRISK IN THE HOST MARRIOTT BONDS SOME OF WHICH SELL FOR 105 UP FROM THE 60 OR SO WHERE THEY TRADED JUST AFTER THE BREAKUP ANNOUNCEMENT RICH BYRNE A JUNKBOND ANALYST WITH MERRILLLYNCH RECENTLY RECOMMENDED THEM CITING STRONG OPERATING PERFORMANCE AND OUTLOOK IMPRESSIVE FINANCIAL RATIOS AND MINIMAL DEFAULT RISK SOME BEARING COUPONS AS HIGH AS 1125 WOULD TRADE HIGHER BUT THE COMPANY HAS THE RIGHT TO CALL THEM AT 103 IF THERE IS ONE FLAW IN WHAT THEY HOLDERS NEGOTIATED IT'S THE CALL PROVISION ONE JUNKBOND ANALYST SAID THE CHINESE ISSUE MEANWHILE REPRESENTS ONE OF THE FIRST SOCALLED YANKEE BOND OFFERINGS TO COME OUT OF CHINA YANKEE BONDS ARE DOLLARDENOMINATED DEBT ISSUED BY A FOREIGN ENTITY INVESTORS SAID THE UNDERWRITERS HOPE TO PRICE THE ISSUE 110 PERCENTAGE POINTS TO 115 PERCENTAGE POINTS ABOVE THE COMPARABLE TREASURY AT THAT PRICE ADAM GRESHIN A PRINCIPAL WITH SCUDDER STEVENS & CLARK SAID HE MAY BUY THE ISSUE WHICH IS RATED DOUBLEA1 AND TRIPLEB THE GUANGDONG AGENCY IS ONE OF 10 ECONOMICDEVELOPMENT AGENCIES DESIGNATED BY THE CHINESE GOVERNMENT TO RAISE DEBT IN FOREIGN MARKETS THE ATTRACTION OF THIS BORROWING IS THAT THE GUANGDONG AGENCY HAS THE DIRECT CONSENT OF THE CHINESE GOVERNMENT TO BORROW IN FOREIGN CURRENCY AND THE DIRECT BACKING OF THE GUANGDONG PROVINCIAL GOVERNMENT MR GRESHIN SAID IT'S A DIRECT WINDOW ON THE ECONOMIC DEVELOPMENT OF CHINA BUT JIM CALMAS VICE PRESIDENT AND PORTFOLIO MANAGER FOR MASSACHUSETTS FINANCIAL SERVICES SAID HE WOULD PASS HE QUESTIONED WHETHER THE SPREAD OVER THE COMPARABLE TREASURY WAS SUFFICIENT PAYMENT FOR INVESTORS GIVEN THE POTENTIAL RISKS FACED BY INVESTORS FROM THE POLITICAL PROCESS IN CHINA AND THE POTENTIAL FOR INSTABILITY AS 800 MILLION OF DEBT WAS PRICED IN THE CORPORATE MARKET YESTERDAY TREASURY NOTES AND BONDS BEGAN THE SESSION ON A WEAK NOTE THEY HEADED BRIEFLY LOWER FOLLOWING DATA DEPICTING GROWING MOMENTUM IN THE MANUFACTURING SECTOR THE FEDERAL RESESRVE REPORTED THAT INDUSTRIAL PRODUCTION JUMPED 08 DURING OCTOBER MORE THAN MOST ECONOMISTS HAD EXPECTED AT THE SAME TIME CAPACITY UTILIZATION ROSE TO 824 FROM 819 IN SEPTEMBER ANALYSTS SAID THE REPORT WAS A CLEAR SIGN OF AN IMPROVED ECONOMY BUT AFTER WEEKS OF DECLINES AT THE HANDS OF STRONGERTHANEXPECTED ECONOMIC NEWS INVESTORS MAY HAVE CONCLUDED THAT LONG BONDS ARE APPROPRIATELY PRICED AS A RESULT TRADERS SAID THERE WAS NO NEED TO PUSH PRICES LOWER ON THE INDUSTRIAL PRODUCTION REPORT WE HAVE MADE AN ADJUSTMENT TO THE OBVIOUS PROSPECT OF A VERY STRONG FOURTH QUARTER SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS YOU REACT ONCE TWICE MAYBE THREE TIMES TO THE NEWS BUT YOU DON'T REACT THE 20TH TIME WE ARE VERY CLOSE TO REACHING A POINT WHERE THE MARKET BECOMES INSENSITIVE TO STRONG ECONOMIC REPORTS HERE ARE DETAILS OF YESTERDAY'S AUCTION OF 13WEEK AND 26WEEK TREASURY BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED NOV 18 THE 13WEEK BILLS MATURE FEB 17 1994 AND THE 26WEEK BILLS MATURE MAY 19 1994 THE MUNICIPAL BOND MARKET'S LATEST SUPPLY WAVE KICKED OFF WITH THE SUCCESSFUL PRICING OF A LARGE OFFERING FROM THE MASSACHUSETTS WATER RESOURCES AUTHORITY A RESURGENCE IN ISSUANCE IS EXPECTED TO BRING MORE THAN 45 BILLION OF SECURITIES TO THE MARKET THIS WEEK MUNI ISSUANCE SLOWED MARKEDLY IN THE LAST FEW WEEKS WHEN A PRICE PLUNGE BOOSTED YIELDS AND RAISED INTERESTRATE COSTS FOR BORROWERS ALTHOUGH YIELDS ARE WELL ABOVE EARLY AUTUMN'S LEVELS PRICINGS ARE EXPECTED TO PICK UP THIS WEEK PRICES WERE GENERALLY UNCHANGED TO 1/8 POINT LOWER AT THE CLOSE THE MASSACHUSETTS WATER RESOURCES AUTHORITY'S 4497 MILLION 1993 SERIES C GENERALREVENUE BOND ISSUE WAS SOLD THROUGH A BEAR STEARNS GROUP THE TOTAL WAS LOWERED FROM 451 MILLION AT A REPRICING YESTERDAY AFTERNOON YIELDS RANGE FROM 275 IN 1994 TO 578 IN 2020 THE BONDS HAVE BEEN RATED SINGLEA BY STANDARD & POOR'S AND FITCH INVESTORS SERVICE AND MOODY'S INVESTORS SERVICE IS EXPECTED TO FOLLOW SUIT TODAY'S NEWISSUE ACTIVITY IS EXPECTED TO BE ESPECIALLY HECTIC ON THE NEGOTIATED SIDE BIG OFFERINGS FROM ISSUERS INCLUDING NEW YORK CITY THE WASHINGTON DC METROPOLITAN AREA TRANSPORTATION AUTHORITY AND THE NEW YORK HOUSING CORP ARE SCHEDULED FOR PRICING THE WEEK'S LARGEST ANTICIPATED ISSUE NEW YORK CITY'S 700 MILLION GENERAL OBLIGATION REFUNDING BONDS WILL BE BROUGHT TO THE MARKET BY A GOLDMAN SACHS GROUP AS THE YEAREND QUIET CONTINUED PRICES DRIFTED SLIGHTLY LOWER TOMORROW'S VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT KEPT INVESTORS CAUTIOUS THERE'S A RELUCTANCE TO BUILD POSITIONS AMID CONCERNS THAT PROFITS MADE THIS YEAR COULD BE ERODED TRADERS SAY AMONG 6 1/2 MORTGAGE SECURITIES FOR DECEMBER DELIVERY GINNIE MAES DECLINED 5/32 TO 99 12/32 FREDDIE MAC GOLDS DROPPED 6/32 TO 99 16/32 AND FANNIE MAES LOST 6/32 TO 99 11/32 TENYEAR TREASURY NOTES SLIPPED 2/32 TO 100 19/32 IN SUBDUED DEALINGS THE PRIMARY MARKET FOR REAL ESTATE MORTGAGE INVESTMENT CONDUIT OR REMIC SECURITIES DIDN'T SHOW MUCH MORE LIFE AFTER A PERIOD OS ISSUANCE THAT AVERAGED ROUGHLY 10 BILLION PER WEEK REMIC VOLUME LAST WEEK SHRIVELED TO LESS THAN ONETHIRD AND IS STARTING THE WEEK SLOWLY SOME DEALERS ARE CARRYING FAIRLY HEAVY UNSOLD INVENTORIES AND AREN'T ANXIOUS TO CREATE NEW REMIC PAPER THE LIMITED NEW ISSUANCE TAKES AWAY A SOURCE OF UNDERLYING SUPPORT FROM THE SECONDARY MARKET AS DEALERS AREN'T GATHERING AS MUCH REMIC COLLATERAL AS THEY HAD IN RECENT WEEKS THE ONLY REMIC ANNOUNCEMENT YESTERDAY WAS THE INCREASE OF FREDDIE MAC'S GOLD 1644 TO 15 BILLION FROM 400 MILLION BY KIDDER PEABODY WHICH USED THE AGENCY'S GOLD 30YEAR 7 MORTGAGE SECURITIES AS COLLATERAL 9311160017 931116 INDUSTRY FOCUS TRUCK MAKERS LEAVE SALES SLUMP IN REARVIEW MIRROR DESPITE PICKUP COMPANIES SAY PRICE COMPETITION IS CURBING PROFIT OUTLOOK BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SALES MANAGER BRIAN LACKEY CLIMBS ABOARD A CHROME AND BLUE HEAVYDUTY TRUCK THAT RECENTLY ARRIVED AT CITY INTERNATIONAL TRUCKS' LOT HERE WE'VE GOT A DEAL ON THIS ONE ALREADY HE SAYS ADMIRING THE LEATHERY INTERIOR OF THE TOPOFTHELINE MODEL FROM NAVISTAR INTERNATIONAL CORP LIKE OTHER SELLERS OF HEAVYDUTY TRUCKS CITY INTERNATIONAL IS MAKING A LOT OF DEALS WITH CUSTOMERS THESE DAYS THE DEALERSHIP SOLD 208 INTERNATIONAL BRAND HEAVY TRUCKS IN THE 12 MONTHS ENDED OCT 31 UP FROM 177 A YEAR EARLIER NEXT YEAR'S FORECAST IS FOR 260 A 25 INCREASE IF THE US ECONOMY IS A HIGHWAY MOST INDUSTRIES ARE TOOLING ALONG UNDER THE SPEED LIMIT BUT MAKERS OF HEAVYDUTY TRUCKS ARE RACING BY SHOWING NO SIGNS OF A SLOWDOWN INDUSTRY ANALYSTS AND OFFICIALS SAY US RETAIL SALES COULD REACH 155000 UNITS THIS YEAR A 30 INCREASE FROM 1992 AND THE INDUSTRY'S BEST YEAR SINCE 1979 IF THE CURRENT BACKLOG OF 80000 ORDERS STAYS CONSTANT TRUCK MAKERS WILL START 1994 WITH NEARLY SIX MONTHS OF PRODUCTION ALREADY ACCOUNTED FOR THE TRUCKERS' BUYING BINGE IS GOOD NEWS FOR THE ECONOMY IT SHOWS CONFIDENCE ON THE PART OF PEOPLE WHO MOVE ALL SORTS OF GOODS ALONG THE NATION'S HIGHWAYS BUT THOSE COUNTING ON A SIMILAR BOOM IN THE OVERALL ECONOMY ARE LIKELY TO BE DISAPPOINTED THE TRUCKING BUSINESS IS OUTPACING THE ECONOMY FOR REASONS OF ITS OWN ONE EXPLANATION FOR THE SURGE IN SALES AND ORDERS IS PENTUP REPLACEMENT DEMAND BUT SOME THINK THE BOOM ALSO HIGHLIGHTS IMPORTANT CHANGES IN THE INDUSTRIAL ECONOMY PRISCILLA TRUMBULL SENIOR INDUSTRIAL ECONOMIST AT THE WEFA GROUP IN SUBURBAN PHILADELPHIA NOTES THAT THE BROAD MOVE AMONG MANUFACTURERS TO PARE INVENTORY MEANS MORE TRUCKS ARE NEEDED TO MAKE MORE FREQUENT DELIVERIES OF PARTS IN THIS ENVIRONMENT OF LEAN INVENTORY ADDS MITCHELL QUAIN OF WERTHEIM SCHRODER & CO EVEN A MODEST UPTURN IN THE ECONOMY CAN MEAN A NICE MULTIPLIER IN TRUCKING DEMAND AT NAVISTAR INTERNATIONAL'S CHICAGO HEADQUARTERS JOHN HORNE PRESIDENT AND CHIEF OPERATING OFFICER SAYS TRUCKERS ARE ALSO BOOKING MORE BUSINESS AS FOREIGN MANUFACTURERS SHIFT OPERATIONS TO THE US USING THE AUTO INDUSTRY AS AN EXAMPLE HE NOTES THAT AN IMPORTED CAR REQUIRES ONE MOVE FROM THE PORT BUT A CAR BUILT IN THE US MEANS MORE HAULS AS RAW MATERIALS AND PARTS ARE TRUCKED IN TO BOTH PARTMAKERS AND TRUCK ASSEMBLERS TRUCK MAKERS LIKE TO POINT TO ANOTHER REASON THE PRICE OF A TRUCK HASN'T MOVED MUCH IN THE RECENT YEARS UNITS TYPICALLY COST 60000 TO 80000 WITHOUT TRAILERS BUT THE QUALITY OF THE PRODUCTS HAS NAVISTAR SAYS COMPARABLE PRICES ON ITS HEAVYDUTY TRUCKS ARE UP A TOTAL OF LESS THAN 1 IN THE LAST EIGHT YEARS MEANWHILE THE COMPANY SAYS A TRUCK THAT HAULED 72000 POUNDS AT 55 MILES AN HOUR IN 1980 MIGHT HAVE HAD A FUEL ECONOMY RATING OF FIVE MILES A GALLON TODAY A SIMILAR TRUCK CAN CARRY 80000 POUNDS AT 60 TO 65 MILES AN HOUR GETTING SEVEN MILES FOR EACH GALLON OF DIESEL FUEL THAT'S A 40 BOOST IN FUEL ECONOMY AND AN EVEN BIGGER BOOST IN OVERALL EFFICIENCY THE COMBINATION OF BETTER QUALITY HIGHER FUEL EFFICIENCY AND LOWER INTEREST RATES IS LEADING SOME TRUCKERS TO CONCLUDE ITS CHEAPER TO BUY A NEW VEHICLE THEY'RE TRADING IN THREE AND FOURYEAROLD TRUCKS SAYS MR LACKEY WHO OVERSEES A STAFF OF SEVEN SALESMEN AT CITY INTERNATIONAL TRUCKS IN THE PAST THEY'D WAIT ANOTHER YEAR THE EARLY BUYING WAS LED BY OWNERS OF LARGER FLEETS WHO TEND TO HAVE GREATER RESOURCES AND ACCESS TO CREDIT BUT NOW MANY INDEPENDENT OWNEROPERATORS ARE WALKING THE SALES LOTS KEN VIETH AN INDUSTRY CONSULTANT IN COLUMBUS IND SAYS THAT UNTIL THIS YEAR MANY BANKS WERE TURNING AWAY INDEPENDENT OPERATORS WHO SOUGHT FINANCING FOR NEW PURCHASES NOW HE SAYS BANKS ARE WILLING TO WORK WITH TRUCKERS AGAIN BECAUSE THEY'RE MORE CONFIDENT ABOUT THE ECONOMY THE BOOM IS HELPING TRUCK MAKERS AND THEIR SUPPLIERS RECOVER FROM THE 1990 TO 1992 DOWNTURN THE PETERBILT UNIT OF PACCAR INC UNIT IS ADDING ANOTHER SHIFT AT ITS FACTORY IN MADISON TENN NAVISTAR'S PLANT IN CHATHAM ONTARIO IS ASSEMBLING 62 TRUCKS A DAY UP FROM 33 JUST A YEAR AGO CUMMINS ENGINE CO RECENTLY REPORTED ITS SECONDBEST THIRD QUARTER EVER THANKS PARTLY TO HEAVYDUTY ENGINE SALES TRUCK MAKERS EVEN FACED SHORTAGES OF SOME COMPONENTS SUCH AS AXLES EARLIER THIS YEAR DESPITE STRONG DEMAND HOWEVER CONTINUED PRICE COMPETITION AMONG THE SIX MAJOR US MAKERS OF TRUCKS CURBS PROSPECTS FOR FAT PROFITS AND MEDIUMDUTY TRUCKS USED FOR SHORTER HAULS HAVE YET TO SEE A STRONG RECOVERY AT OLIVER TRANSPORTATION CO IN MEXICO MO TONY MEADOR PRESIDENT SAYS HE CAN'T TOLERATE PRICE HIKES FOR A SIMPLE REASON OUR CUSTOMERS AREN'T PUTTING UP WITH PRICE INCREASES FROM US OLIVER TRANSPORTATION WHICH HAULS BASIC MATERIALS SUCH AS BRICK STEEL AND ALUMINUM FOR LARGE COMPANIES RECENTLY ORDERED 75 NEW TRACTORS FROM NAVISTAR FOR 5 MILLION ABOUT 66000 PER TRUCK MR MEADOR SAYS THE COMPANY RECEIVED BIDS FROM FOUR COMPANIES AND NONE DIFFERED BY MORE THAN 2000 A TRUCK GARY MCMANUS TRUCK INDUSTRY ANALYST AT KEMPER SECURITIES INC IN CHICAGO SAYS PRICING PRESSURE HAS CUT MARGINS AT EVEN THE BESTRUN TRUCKING COMPANIES AT PACCAR FOR EXAMPLE HE SAYS OPERATING MARGINS ARE DOWN TO 35 TO 4 FROM 6 TO 65 IN THE LATE 1980S HE SAYS THAT'S PARTLY DUE TO A LARGER PROPORTION OF LOWERMARGIN SALES TO FLEETS BUT ALSO BECAUSE OF COMPETITIVE PRESSURES A PACCAR SPOKESMAN WON'T COMMENT ON THE COMPANY'S MARGINS AT NAVISTAR MR HORNE SAYS HIS COMPANY PLANS TO MAKE MONEY BY CUTTING COSTS RATHER THAN RELYING ON PRICE INCREASES IF YOU JAM THEM WITH A BIG PRICE INCREASE HE SAYS THEY GO OUT AND BUY FROM SOMEBODY ELSE THAT COMPETITION ALSO TRANSLATES TO THIN PROFIT MARGINS AT CITY INTERNATIONAL DESPITE ITS BUSTLING LOT A GOOD DEAL EXPLAINS MR LACKEY MIGHT MEAN A PROFIT OF ABOUT 1500 A TRUCK LESS THAN SOME AUTO DEALERS MAKE ON A FULLSIZE CAR A GREAT DEAL FOR THE TRUCK DEALER MIGHT YIELD A 3500 PROFIT BUYERS ARE VERY SMART NOWADAYS CONCLUDES MR LACKEY 9311160016 931116 POLITICS & POLICY CLINTON IS FORCED TO RELY ON GINGRICH DEMOCRATS' NEMESIS FOR NAFTA VOTES BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF BILL CLINTON'S PRESIDENCY IS AT STAKE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT AS SOME ALLIES CLAIM THEN HE'S NOW IN THE COLD HANDS OF NEWT GINGRICH THAT'S THE SAME NEWT GINGRICH WHO RANKS SECOND AMONG THE USUALLY OBSTRUCTIONIST HOUSE REPUBLICANS AND SECONDTONONE AS THE REPUBLICAN DEMOCRATS MOST LOVE TO HATE BUT IN THE PAST FEW DAYS IT HAS BECOME INCREASINGLY CLEAR THAT IF THE ADMINISTRATION IS TO WIN THE NAFTA VOTE THEIR CHAMPION IS GOING TO HAVE TO BE MR GINGRICH BY ALL ACCOUNTS THE GEORGIAN IS WORKING OVERTIME TO HELP THE PRESIDENT WIN TOMORROW'S HOUSE VOTE ON NAFTA HE'S WORKING HARD SAYS WHITE HOUSE COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS HE'S PUTTING IN THE HOURS HE'S MAKING THE CALLS TOMORROW'S OUTCOME WILL DETERMINE WHETHER THE ADMINISTRATION CONTINUES TO SAY NICE THINGS ABOUT MR GINGRICH AND VICE VERSA OR WHETHER IN THE EVENT OF DEFEAT THE EXTRAORDINARY BIPARTISANSHIP DISSOLVES INTO RECRIMINATIONS THAT COULD POISON RELATIONS FOR THE REST OF MR CLINTON'S TERM ALREADY LAST WEEK REPUBLICANS CLOSE TO MR GINGRICH SAW EVIDENCE THAT WHITE HOUSE AIDES WERE PREPARING TO BLAME HIM IN CASE OF DEFEAT WHILE SOME DEMOCRATS WERE SUGGESTING PRIVATELY THAT MR GINGRICH THE HOUSE REPUBLICANS' TOP VOTECOUNTER WAS FALLING SHORT OF THE NEEDED GOP VOTES WHAT'S CLEAR IS THAT REPUBLICANS MUST PRODUCE A MAJORITY OF THE VOTES IF NAFTA IS TO PASS AS MANY AS TWOTHIRDS OF DEMOCRATS MIGHT VOTE AGAINST IT MR GINGRICH POINTEDLY HAS NEVER SAID REPUBLICANS COULD DELIVER MORE THAN 110 VOTES WHICH IS JUST OVER HALF THE 218 VOTES NEEDED TO PASS NAFTA BUT DEMOCRATS ARE RELYING ON HIM FOR MORE TO MAKE UP THE SHORTFALL ON THEIR SIDE MR GINGRICH HAS A PERSONAL STAKE IN NAFTA'S APPROVAL AS WELL EVEN IF IT'S NOT SO PRONOUNCED AS MR CLINTON'S THE LAWMAKER WHO'S IN LINE TO SUCCEED REP ROBERT MICHEL OF ILLINOIS AS THE TOP HOUSE GOP LEADER AFTER NEXT YEAR HAS COME TO PERSONIFY PARTISANSHIP BUT A VICTORY ON NAFTA WOULD SHOW HE CAN DELIVER VOTES ON A BIPARTISAN ISSUE SAYS NEW MEXICO REP BILL RICHARDSON A LEADER IN DEMOCRATS' PRONAFTA EFFORT AND THAT HE CAN OPERATE EFFECTIVELY IN A BIPARTISAN CONTEXT REP MICHEL AND HIS TOP AIDE WILLIAM PITTS ARE WORKING CLOSELY WITH THE WHITE HOUSE TOO ALONG WITH THE NO 3 HOUSE GOP LEADER REP RICHARD ARMEY OF TEXAS WHO'S HAD RUNINS WITH BOTH THE PRESIDENT AND HIS WIFE ON HEALTH CARE AND OTHER ISSUES BUT IT'S THE CLINTONGINGRICH MARRIAGE OF CONVENIENCE THAT'S AMONG THE MOST INTRIGUING OF ALL THE ODD ALLIANCES THAT HAVE TAKEN SHAPE AROUND THE CONTROVERSIAL TRADE PACT THE ALLIANCE COULD NOT HAVE BEEN FORESEEN LAST AUGUST IMMEDIATELY AFTER THE DEMOCRATIC CONVENTION WHEN REP GINGRICH COMPARED THE DEMOCRATIC PLATFORM'S STANCE ON FAMILY ISSUES TO WOODY ALLEN'S TROUBLED BROOD AND SAID THAT MR CLINTON HIMSELF HAS A DEEP PSYCHOLOGICAL NEED TO PANDER TO THE WORST INSTINCTS OF WHATEVER GROUP HE'S IN FRONT OF BUT YESTERDAY WITH CAMERAS INVITED IN AT THE START OF WHAT PARTICIPANTS CALLED A HISTORIC MEETING MR GINGRICH JOINED WITH OTHER DEMOCRATIC REPUBLICAN AND WHITE HOUSE FIGURES TO COMPARE VOTE COUNTS THERE ARE CLEARLY ENOUGH UNCOMMITTED VOTES FOR US TO WIN MR GINGRICH SAID THE ALLIES HAVE HAD ROUGH MOMENTS ALONG THE WAY MR GINGRICH REPEATEDLY HAS GOADED MR CLINTON TO GET INVOLVED PERSONALLY IN THE CAMPAIGN AND AS RECENTLY AS LAST MONTH HE PRONOUNCED THE ADMINISTRATION'S EFFORTS PATHETIC HE FORCED THE WHITE HOUSE TO SCALE BACK THE CUSTOMS FEES AND TICKET TAXES THAT IT PROPOSED TO REPLACE REVENUES THAT WOULD BE LOST UNDER NAFTA AS TARIFFS WITH MEXICO AND CANADA ARE PHASED OUT AND HE HAS PRESSED FOR MR CLINTON TO PROMISE IN WRITING THAT HE WILL REBUKE ANY DEMOCRATIC CANDIDATES IN NEXT YEAR'S ELECTIONS WHO ATTACK REPUBLICANS FOR THEIR PRONAFTA VOTES MANY PRONAFTA DEMOCRATS FOR THEIR PART INITIALLY FEARED MR GINGRICH WOULD ENGINEER GOP SUPPORT JUST SHORT OF THE NUMBER OF VOTES NEEDED TO GIVE MR CLINTON A VICTORY THOSE SUSPICIONS HAVE ABATED OF LATE I DON'T THINK HE'S PLAYING GAMES SAYS REP RICHARDSON HOUSE REPUBLICANS ATTEST TO MR GINGRICH'S SINCERITY AND HIS PERSISTENCE SECONDTERM REP DAVID HOBSON OF OHIO WHO JOINED FELLOW OHIO REPUBLICAN JOHN KASICH IN ENDORSING NAFTA LATE LAST WEEK GIVES MR GINGRICH SOME CREDIT WE ALMOST WANTED TO AVOID HIM WHEN WE'D SEE HIM COMING BECAUSE HE'D ALWAYS GRAB US AND SAY YOU'VE GOT TO BE RESPONSIBLE' MR GINGRICH TOOK TO THE WHITE HOUSE THE OHIO REPUBLICANS' COMPLAINT THAT NO OHIO DEMOCRATS WERE SUPPORTING NAFTA LAST WEEK WHEN DEMOCRATIC REP DAVID MANN BECAME THE FIRST TO DO SO REPS HOBSON AND KASICH FOLLOWED MR GINGRICH HAS BEEN LESS INSISTENT WITH GOP FRESHMEN WHO TEND TO BE MORE POLITICALLY VULNERABLE FLORIDA REP TILLIE FOWLER SAYS I'VE TALKED TO HIM AND HE'S HAD OTHER PEOPLE LOBBY ME BUT HE'S MADE IT PRETTY CLEAR THAT HE'S NOT GOING TO PRESSURE ANY FRESHMEN REPUBLICANS TO DO ANYTHING THEY'RE NOT COMFORTABLE DOING BY SEVERAL ACCOUNTS MR GINGRICH LAST WEEK SALVAGED THE VOTE OF NEW YORK REP BILL PAXON ONE OF 27 REPUBLICANS INCLUDING MR GINGRICH WHO HAD WRITTEN MR CLINTON THREATENING TO VOTE AGAINST NAFTA BECAUSE OF THE TRANSPORTATION AND CUSTOMS FEES MR GINGRICH TALKED TO HIM ARGUING THAT THE TAX ISSUE HAD BEEN SETTLED AND THAT MR PAXON AS THE HEAD OF HOUSE REPUBLICANS' CAMPAIGN OPERATION OWED IT TO HIS PARTY LEADERSHIP POSITION TO BACK FREE TRADE MR PAXON INSISTS HE WOULD HAVE VOTED FOR NAFTA IN THE END BUT HE ADDS IF NAFTA PASSES IN MY VIEW THERE'S ONLY ONE REASON NEWT GINGRICH 9311160014 931116 LEISURE & ARTS ON SPORTS NEW YORK'S ALL SMILES FOR 262 MILES BY FREDERICK C KLEIN NEW YORK LIKE CALVIN COOLIDGE I DO NOT CHOOSE TO RUN AND I HERETOFORE ALSO HAD CHOSEN NOT TO WATCH OTHERS DO SO TO EXCESS THIS REFLECTS A LONGSTANDING AVERSION TO EXPERIENCING OR WITNESSING ACUTE DISCOMFORT A TRAIT I THINK I HAVE IN COMMON WITH THE BULK OF THE RACE THE HUMAN RACE THAT IS I REALIZE HOWEVER THAT OTHERS DO NOT SHARE MY PREFERENCE THIS WAS BROUGHT HOME FORCEFULLY HERE ON SUNDAY THE DAY OF THE 24TH ANNUAL NEW YORK MARATHON SOME 26000 MEN AND WOMEN OF VARIOUS AGES AND NATIONALITIES CAME TO RUN THE 262MILE EVENT AND THE CROWDESTIMATE EXPERTS SAID SOME TWO MILLION OTHERS CAME TO WATCH ONE BIG DIFFERENCE BETWEEN THE RUNNERS AND THE WATCHERS WAS THAT THE WATCHERS LOOKED HAPPY WHILE EXCEPT AT THE START THE RUNNERS DID NOT BY AND LARGE THE RUNNERS ALSO WERE SKINNIER THAN THE WATCHERS THIS IS A CHARACTERISTIC OF A SPORT WHOSE MOTTO SHOULD BE THAT ONE NEVER CAN BE TOO THIN OR TOO WRETCHED IT WAS SIGNIFICANT I THOUGHT THAT THE SECONDPLACE FINISHER AMONG THE MEN WAS BOB KEMPAINEN OF MINNETONKA MINN PAIN ISN'T HIS MIDDLE NAME BUT IT IS THE MIDDLE OF HIS LAST ONE OF SAVING GRACES THOUGH THERE WERE SEVERAL WITH THE SUN SHINING AND TEMPERATURES MOSTLY IN THE 60S SUNDAY RANKED AMONG THE BEST NOVEMBER DAYS IN HISTORY IT WAS SO PRETTY THAT EVEN THE GRAFFITI ALONG NEW YORK'S STREETS LOOKED GOOD AND FOR FIVE OR SO HOURS THE COMPONENTS OF GOTHAM'S OFTFRACTIOUS MOSAIC UNITED TO URGE ON THE COMPETITORS PEOPLE WERE SO GOODNATURED THEY EVEN CHEERED THE PRESS BUS YOU GOTTA UNDERSTAND THAT THE MARATHON'S BECOME OUR BIGGEST SPORTS EVENT EXPLAINED A NEW YORKER OF MY ACQUAINTANCE WE NEVER HAVE A WORLD SERIES ANYMORE THE SUPER BOWL'S ALWAYS SOMEWHERE ELSE EVEN IF A NEW YORK TEAM'S IN IT AND ORDINARY PEOPLE CAN'T GET TICKETS TO THE US OPEN TENNIS TOURNAMENT IT'S PRETTY MUCH THIS OR NOTHING THE MAN MOST RESPONSIBLE FOR THE NEW YORK MARATHON'S ASCENSION IS FRED LEBOW LIKE MANY GUNGHO NEW YORKERS HE WAS BORN AND LIVED ELSEWHERE ROMANIA CZECHOSLOVAKIA ENGLAND IRELAND KANSAS CITY AND CLEVELAND BEFORE SETTLING HERE HE CAME TO RUNNING 30ODD YEARS AGO AS A WAY TO GAIN STAMINA FOR TENNIS AND SAYS THAT SINCE HIS FIRST RUN HE HASN'T LOST A SET THAT'S BECAUSE HE HASN'T PLAYED ONE RUNNING OPENED NEW WORLDS FOR ME IT WAS LIKE THIS GREAT SECRET NO ONE HAD LET ME IN ON HE RHAPSODIZES HE SOON WAS RUNNING MARATHONS THEN ORGANIZING THEM EVENTUALLY QUITTING HIS JOB AS A GARMENTINDUSTRY CONSULTANT TO SPREAD THE SECRET WEARING RUNNING CLOTHES AND SIGNATURE BICYCLE CAP EVERYWHERE HE BECAME A WALKING ADVERTISEMENT FOR HIS SPORT HE RAN DAILY UNTIL STRUCK BY BRAIN AND THYROID CANCER IN 1990 AFTER THAT HE WALKED LAST YEAR HIS DISEASE IN REMISSION HE MARKED HIS 60TH BIRTHDAY BY AGAIN COMPETING IN AND FINISHING THE RACE HE BUILT IT WAS MY GIFT TO MYSELF IT WAS BETTER THAN A CAKE AND I LOVE CAKE SAYS THE BEARDED VEGETARIAN THE FIRST NEW YORK MARATHON WAS RUN IN 1970 FOUR TIMES AROUND CENTRAL PARK WITH 126 CONTESTANTS THE RACE WAS EXPANDED TO ALL THE BOROUGHS IN 1976 IT MADE HEADLINES IN 1980 WHEN IT WAS DISCOVERED THAT ROSIE RUIZ THE FIRST WOMAN ACROSS THE FINISH LINE HAD TAKEN THE SUBWAY FOR PART OF HER TRIP NATIONAL TELEVISION COVERAGE BEGAN IN 1981 THE RACE LONG HAS BEEN THE WORLD'S LARGEST IN TERMS OF PARTICIPATION WITH 28000 STARTERS IN 1992 MORE THAN 90 OF THOSE FINISHED BUT THE NUMBER WAS UNWIELDY SO THE ENTRY LIST WAS TRIMMED BY ALMOST 10 THIS YEAR ABOUT ONETHIRD OF THE RUNNERS ARE FOREIGNERS A THIRD ARE FROM THE NEW YORK AREA AND A THIRD COME FROM THE REST OF THE US LAST YEAR LAWYERS WERE THE LARGEST SINGLE OCCUPATIONAL GROUP WITH 1139 ENTERED BETCHA DIDN'T KNOW THERE WERE THAT MANY SKINNY LAWYERS PRETTY MUCH THE SAME TOP RUNNERS RUN IN MARATHONS EVERYWHERE SO WHAT REALLY SETS THE NEW YORK MARATHON APART IS NEW YORK THE PEOPLE OF THE CITY FILL THE RACE'S ROUTE TAXING A POLICE CONTINGENT BIG ENOUGH TO STAGE A ST PATRICK'S DAY PARADE SOME SPECTATORS ARE THERE TO CHEER SPECIFIC RUNNERS YO VINNIE ALL THE WAY READ ONE REPRESENTATIVE SIGN ON SUNDAY OTHERS COME TO PRESS THEIR OWN AGENDAS HOWEVER OBSCURELY A GROUP ALONG BEDFORD AVENUE IN BROOKLYN WORE WHITE COVERALLS AND LIFTED LARGE PHOTOS OF HUMAN SKULLS MAYBE THEY WERE PROMOTING DENTAL HYGIENE BUT EVEN THE IDEOLOGUES SEEM TO JOIN IN THE FESTIVE AIR THE CROWD IS SO SO PROUD OF THE RUNNERS THEY MAKE YOU GO FASTER THAN MAYBE YOU WOULD OTHERWISE SAID UTA PIPPIG THE BLOND 28YEAROLD GERMAN WHO WON THE WOMEN'S SIDE OF SUNDAY'S RACE IN THE TIME OF 22624 THE MEN'S WINNER WAS THE WIRY VETERAN ANDRES ESPINOSA A 30YEAROLD MEXICAN WHO WAS SECOND HERE LAST YEAR HIS TIME WAS 21004 59 SECONDS FASTER THAN THAT OF KEMPAINEN THEY LIKE PIPPIG LOOKED RELATIVELY COMFORTABLE THROUGHOUT NOT SO FORTUNATE WERE THE AT LEAST 55 RUNNERS WHO WERE TAKEN TO HOSPITALS FOR HEAT EXHAUSTION AND MORE WHO WERE TREATED BY ONSITE MEDICS ONE ELITE RUNNER KIM JONES OF SPOKANE WASH WAS HOSPITALIZED WITH AN ASTHMA ATTACK AND RELEASED TEMPERATURES IN THE 60S PLEASANT BY MOST STANDARDS ARE CONSIDERED HIGH BY A MARATHON'S IT'S NOT FOR NOTHING THAT THE ROUTE WAS LINED WITH FIRSTAID STATIONS THE WINNERS GAVE THE KIND OF POSTRACE INTERVIEWS MARATHON RUNNERS GIVE ESPINOSA MENTIONED THE HARD WORK OF HIS PREPARATION THREE TIMES AND PIPPIG TWICE PIPPIG FINISHED ABOUT A HALFMILE IN FRONT OF THE SECONDPLACE WOMAN AND SAID SHE WAS SURPRISED SHE DID SO WELL I RAN THROUGH CENTRAL PARK ALONE IT WOULD HAVE BEEN BETTER TO HAVE HAD TWO OR THREE MEN RUNNING WITH ME SHE SAID SHE MEANT FOR PACE ON THIS DAY AMONG SPECTATORS IN THE THOUSANDS PROTECTION WASN'T REQUIRED 9311160013 931116 REAL ESTATE BY MITCHELL PACELLE MOST SENIOR CITIZENS IT APPEARS AREN'T READY FOR SENIORS HOUSING IN THE 1980S ANTICIPATING THE INCREASE IN THE POPULATION OF OLDER AMERICANS MORE DEVELOPERS BEGAN BUILDING FOR THE 65ANDOVER SET THE TYPICAL DEVELOPMENT OFFERED COMFORTABLE LIVING SPACE RESTAURANTLIKE COMMUNAL DINING AND LITTLE ELSE THE NOTION WAS THAT THE DEVELOPERS WERE GOING TO ATTRACT RECENT RETIRED COUPLES TO MOVE OUT OF THEIR SINGLEFAMILY HOUSES SAYS DAVID SCHLESS EXECUTIVE DIRECTOR OF THE AMERICAN SENIORS HOUSING ASSOCIATION BUT THE REALITY WAS FOR THE GREAT MAJORITY OF SENIORS 65 TO 70 THERE WAS NO REAL COMPELLING REASON TO MOVE MOST HOMEOWNERS IN FACT ARE INCLINED TO REMAIN IN THEIR OWN HOMES UNTIL THEY CAN NO LONGER MANAGE OFTEN WHEN A SPOUSE DIES OR THEY BECOME SERIOUSLY ILL OR SIMPLY TOO FRAIL TO GET AROUND IT DOESN'T USUALLY HAPPEN BEFORE AGE 75 ACCORDING TO A RECENT ASSOCIATION SURVEY OF 400 SENIORSHOUSING DEVELOPERS THE AVERAGE SENIORSHOUSING RESIDENT IS 82 YEARS OLD AND THREEQUARTERS ARE WOMEN REFLECTING THEIR LONGER LIFE EXPECTANCY YOU'RE ONLY LIVING THERE BECAUSE YOU'RE LONELY YOU'VE LOST A SPOUSE YOU NEED SOME KIND OF SERVICE SAYS BILL KAPLAN PRESIDENT OF SENIOR LIFESTYLE A CHICAGOBASED DEVELOPER MEDICAL CARE TRANSPORTATION AND OTHER SERVICES ARE FAR MORE IMPORTANT TO THESE RESIDENTS THAN GOLF AND SHUFFLEBOARD IN FACT RESIDENTS OF MANY OF THE LIMITEDSERVICE FACILITIES BUILT IN THE 1980S MOVED OUT WHEN THEY NEEDED BETTER SUPPORT SERVICES THE INDUSTRY RESPONDED BY ADDING A VARIETY OF SUPPORT SERVICES AND HEALTH CARE NOW 96 OFFER EMERGENCYRESPONSE SERVICE 85 HAVE HOUSEKEEPING AND 63 PROVIDE NURSING THE REPORT SAID CAPITALIZING ON THE RELUCTANCE OF MOST PEOPLE TO MOVE TO NURSING HOMES MANY SENIORS DEVELOPMENTS ARE NOW BILLING THEMSELVES AS AN ALTERNATIVE FOR FRAIL PEOPLE WHO DON'T NEED 24HOUR NURSING CARE NINE MONTHS AFTER THE WORLD TRADE CENTER BOMBING IN NEW YORK A GROWING NUMBER OF FIREPREVENTION EXPERTS ARE SUGGESTING THAT MEGAHIGHRISE BUILDINGS SHOULD BE TREATED DIFFERENTLY FROM OTHER HIGHRISES IN AN EXHAUSTIVE REPORT ON THE DISASTER RELEASED LAST MONTH THE NATIONAL FIRE PROTECTION ASSOCIATION EMPHASIZED THAT ALTHOUGH FEW HIGHRISES ARE EVER TARGETED FOR TERRORIST BOMBS MANY ARE PRONE TO THE RAPID SPREAD OF SMOKE LIKE THAT WHICH CAUSED THE DANGEROUS MASS EVACUATION OF THE TWIN TOWERS WE DON'T WANT ANYONE TO THINK THAT BECAUSE IT WAS A BOMB YOU CAN NEGATE WHAT HAPPENED IN TERMS OF THE HAZARDS SAYS THOMAS KLEM DIRECTOR OF FIRE INVESTIGATIONS AT THE NONPROFIT ASSOCIATION WHO COAUTHORED THE REPORT THEY ARE ALL TOO COMMON IN ANY HIGHRISE FIRE HE SAYS CITING FIRES IN 1992 AT ONE MERIDIAN PLAZA IN PHILADELPHIA AND 1988 AT THE FIRST INTERSTATE BANCORP BUILDING IN LOS ANGELES THE RAPID SPREAD OF SMOKE THROUGH ELEVATOR SHAFTS TO UPPER FLOORS KNOWN AS THE STACK EFFECT IS CAUSED BY A NATURAL DRAFT FROM THE GROUND FLOOR TO THE ROOF OF HIGHRISES THE TALLER THE BUILDING THE GREATER THE HAZARD CONFUSED TENANTS FLEEING THE TRADE CENTER EXACERBATED THE PROBLEM BY OPENING DOORS THROUGHOUT THE BUILDINGS IN MEGAHIGHRISES WHERE IT IS IMPOSSIBLE TO EVACUATE EVERYONE AT ONCE IT IS ESPECIALLY IMPORTANT FOR OCCUPANTS NOT IN IMMEDIATE DANGER TO STAY PUT FIREFIGHTERS CALL THE STRATEGY DEFENDINPLACE BUT WITH THE TRADE CENTER'S COMMUNICATIONS AND LIGHTING SYSTEMS DESTROYED BY THE BOMB FIREFIGHTERS COULDN'T PREVENT MASS FLIGHT WHEN YOU REACH A CERTAIN THRESHOLD WE THINK THAT 50 STORIES IS A GOOD DISCUSSION POINT THERE NEEDS TO BE MORE RELIABILITY OF THE FIREPROTECTION SYSTEM SAYS MR KLEM HE AND OTHER EXPERTS SAY MEGAHIGHRISES SHOULD HAVE DECENTRALIZED OR BACKUP COMMUNICATIONS LIGHTING AND SPRINKLER SYSTEMS SO THEY CAN'T BE DISABLED SO EASILY THE OFFICE MARKET LONG CONSIDERED THE BASKET CASE OF THE COMMERCIAL REALESTATE WORLD IS SHOWING MILD SIGNS OF RECOVERY OFFICEVACANCY RATES IN THE NATION'S CITY CENTERS DIPPED TO 185 IN THE THIRDQUARTER THEIR LOWEST LEVEL IN TWO YEARS FROM 196 IN THE SECONDQUARTER ACCORDING TO A SURVEY OF 40 METROPOLITAN AREAS BY CUSHMAN & WAKEFIELD A NEW YORKBASED REALESTATE FIRM SUBURBAN VACANCIES DROPPED TO 187 FROM 201 THE LOWEST RATE SINCE THE FIRM BEGAN TRACKING IT IN 1986 I THINK WE'VE REACHED A MARKET BOTTOM ACROSS THE BOARD SAYS ARTHUR MIRANTE III THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER RENTS HAVE BEEN STABILIZED FOR FOUR TO SIX MONTHS IN MOST MARKETS EXPERTS ATTRIBUTE THE IMPROVEMENT TO THE LACK OF NEW CONSTRUCTION FOR SEVERAL YEARS COUPLED WITH A SLIGHT IMPROVEMENT IN WHITECOLLAR EMPLOYMENT BUT BECAUSE INCREASES IN RENTS ARE EXPECTED TO COME AT A GLACIAL PACE THE IMPROVEMENT IS TOO LITTLE TOO LATE FOR MANY EMBATTLED OWNERS THE GUY THAT PAID 200 TO 250 A SQUARE FOOT TO BUY A BUILDING THREE YEARS AGO HE IS NOT OVERJOYED AND HE WON'T BE OVERJOYED TWO YEARS FROM NOW SAYS MR MIRANTE HE ISN'T CELEBRATING AT 13000 A SINGLEPOD DOMESHAPED HOME IS BEING TOUTED BY DYNATHERM SYSTEMS USA PORTSMOUTH VA AS THE ULTIMATE IN AFFORDABLE HOUSING WHILE A UNIVERSITY OF BUFFALO GROUP IS PROMOTING A CEMENT DOME COSTING ABOUT 150 FOR EARTHQUAKEPRONE VILLAGES IN INDIA 9311160012 931116 WITH GLORIA TREVI IN MEXICO MADONNA MIGHT FEAR NAFTA ASCENSION OF RACY ROCK STAR SOUTH OF THE BORDER RAISES WORRIES OF US INFLUENCE BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY IN THEIR WORST NIGHTMARES AMERICAN OPPONENTS OF THE NORTH AMERICAN FREE TRADE AGREEMENT SEE THE RUSTING HULKS OF FACTORIES THAT HAVE SHIFTED PRODUCTION SOUTH OF THE BORDER IN THEIR OWN BAD DREAMS MEXICAN OPPONENTS OF NAFTA SEE COVENS OF BRAZEN YOUNG WOMEN LIKE GLORIA TREVI THE BIGGEST ROCK STAR IN MEXICO MS TREVI IS THE LEATHERCLAD MINISKIRTED EMBODIMENT OF THE CHANGES THAT AMERICAN CULTURAL PENETRATION IS BRINGING TO THIS CONSERVATIVE ROMAN CATHOLIC SOCIETY TRAINED IN BALLET AND CLASSICAL MUSIC MS TREVI WHO IS 23 YEARS OLD TOOK UP ROCK A FEW YEARS AGO ABOUT THE SAME TIME THAT MEXICO BEGAN OPENING ITS BORDERS TO ALL TYPES OF AMERICAN PRODUCTS EVER SINCE MS TREVI'S OUTRAGEOUS EXPLOITS WHICH ARE NOT UNLIKE THOSE OF A CERTAIN MATERIAL GIRL IN THE US HAVE EARNED HER THE SOBRIQUET LA MADONNA MEXICANA PRUDISH PROGRAMMERS AT MANY RADIO STATIONS REFUSED TO PLAY MS TREVI'S SONG ABOUT A PREGNANT UNWED TEENAGER CITY OFFICIALS IN CHIHUAHUA BANISHED THE ROCK STAR AFTER A CONCERT THERE IN WHICH SHE RAFFLED OFF A PAIR OF HER PANTIES MEXICO'S LEADING TELEVISION TALKSHOW HOST REBUKED MS TREVI FOR DEFENDING UNEMPLOYED WOMEN WHO TURN TO PROSTITUTION EVEN MS TREVI'S OWN GRANDMOTHER SCOLDED THE SINGER FOR HER WILD WAYS IN AN OPEN LETTER TO HER HOMETOWN NEWSPAPER IN MONTERREY THESE SETTOS WITH AUTHORITY FIGURES HAVE ONLY MADE MS TREVI MORE POPULAR WITH YOUTHFUL MEXICANS WHO HAVE PUSHED ALL THREE OF HER ALBUMS TO THE TOP OF THE CHARTS AND MADE HER FIRST MOVIE THE BIGGEST MONEYMAKER IN MEXICAN MOTIONPICTURE HISTORY A NEW GENERATION IS RISING IN MEXICO BUT THERE'S ALWAYS A NOISY GROUP THAT WANTS THINGS TO STAY THE WAY THEY ARE MS TREVI SAYS IN AN INTERVIEW WEARING A RED MINISKIRT AND BLACK COWBOY BOOTS STAMPED WITH THE HARLEYDAVIDSON LOGO IMPORTED CULTURAL INFLUENCES LIKE THOSE THAT HAVE MOLDED MS TREVI ARE THE TALK OF MEXICO THESE DAYS AS NAFTA LOOMS NEAR MEXICANS ACCEPT THE FACT THAT FREE TRADE WILL BE GOOD FOR THE ECONOMY BUT THEY HAVE VISCERAL WORRIES ABOUT HOW IT WILL AFFECT THINGS LIKE SOVEREIGNTY CULTURE AND MORALITY SAYS FEDERICO SAN ROMAN A PSYCHIATRIST AND NEWSPAPER COLUMNIST INDEED SINCE MEXICO STARTED RAZING TRADE BARRIERS A FEW YEARS AGO THIS 3000YEAROLD SOCIETY HAS HAD TO ASSIMILATE A BARRAGE OF AMERICANISMS INCLUDING TRAFFIC COPTERS PORNOGRAPHY AND SENSATIONALIST TVTALK SHOW HOSTS TO TRADITIONALISTS MS TREVI IS AN OBJECT LESSON IN WHAT AMERICAN INFLUENCES CAN DO TO A NICE GIRL FROM THE MEXICAN PROVINCES OBVIOUSLY SHE SAW MADONNA ON CABLE TELEVISION AND THOUGHT THAT SIMILARLY LIBERTINE BEHAVIOR WOULD GAIN ATTENTION IN MEXICO SAYS FRANCISCO GONZALEZ GARZA HEAD OF THE NATIONAL PARENTS UNION EVEN WORSE HE SAYS THOUSANDS OF LITTLE MEXICAN GIRLS CAPERING ABOUT IN SCHOOL PLAYGROUNDS AND SHOPPING MALLS ARE NOW IMITATING GLORIA TREVI PERHAPS WE SHOULD NEGOTIATE A CULTURAL TRADE AGREEMENT TO GIVE US SOME CONTROL OVER THE AMERICAN INFLUENCES FLOODING OUR BORDERS SAYS MR GONZALEZ WHOSE OFFICE BEARS A PORTRAIT OF HIS OWN FEMININE IDEAL THE VIRGIN OF GUADALUPE FOR HER PART MS TREVI A STRONG SUPPORTER OF NAFTA POINTS OUT THAT CULTURAL INFLUENCES CAN FLOW TWO WAYS HER SOONTOBE RELEASED FOURTH ALBUM WAS RECORDED IN ENGLISH AND WILL BE PROMOTED AS AGGRESSIVELY IN LOS ANGELES AS IN MEXICO CITY TO MAKE A POINT ABOUT CULTURE AND COMMERCE SHE PICKS UP A TRAY THAT HOLDS A LOAF OF PAN DE MUERTO THE ROUND SWEET BREAD THAT MEXICANS HAVE EATEN FOR CENTURIES DURING DAY OF THE DEAD CEREMONIES NOV 2 PAN DE MUERTO IS A MARVELOUS TRADITION BUT WHAT GOOD IS IT IF MEXICANS DON'T HAVE ENOUGH MONEY TO BUY THE FLOUR TO MAKE IT WITH MS TREVI SAYS WITH FREE TRADE WE WILL HAVE THE MONEY WE WILL EARN IT BY SELLING PAN DE MUERTO TO THE AMERICANS IT SEEMS FITTING THAT THIS SINGER WHOSE REAL NAME IS GLORIA DE LOS ANGELES TREVINO EMERGED FROM THE NORTHEASTERN CITY OF MONTERREY AN INTERNATIONAL BUSINESS CENTER THAT CLAIMS THE WORLD'S LARGEST CONCENTRATION OF SATELLITETV DISHES ALL OF THEM AIMED NORTH THE DAUGHTER OF AN ARCHITECT AND A BALLET TEACHER MS TREVI STILL RECALLS FROM HER CHILDHOOD THE FAMILY CAR TRIPS TO TEXAS BORDER TOWNS A FEW HOURS AWAY I WAS ENCHANTED BY EVERYTHING THE STREETS THE HOUSES THE CRAYON SETS WITH 64 COLORS SHE SAYS EAGER TO SEE MORE OF THE WORLD MS TREVI WITH HER PARENTS' APPROVAL MOVED TO MEXICO CITY AT AGE 13 TO SEEK A CAREER AS AN ACTRESS OR DANCER BUT THE ENTERTAINMENT INDUSTRY CLOSED ITS DOORS TO HER FOR A TIME SHE SCRAPED BY LIVING IN ROOMING HOUSES AND SINGING TROPICAL SONGS ON STREETS AND BUSES FOR WHATEVER CHANGE PASSERSBY WOULD OFFER LATER INSPIRED BY SOME HEATANDSERVE AMERICAN FOOD SHE SAW IN A SUPERMARKET MS TREVI SET UP A SIDEWALK STAND THAT SOLD TACOS IN REHEATABLE FOIL WRAPPERS EASYTOCOOK FOOD WAS ONE OF MANY IMPORTS THAT BEGAN HITTING MEXICO IN THE LATE 1980S AFTER DECADES OF KEEPING ITS BORDERS CLOSED TO OUTSIDE GOODS AND INFLUENCES MEXICO HAD EMBARKED ON AN ECONOMIC PROGRAM CALLED LA APERTURA THE OPENING WHICH WAS DESIGNED TO ALLOW A FREE FLOW OF GOODS AND INVESTMENT THE IMPORT THAT MADE THE DEEPEST IMPRESSION ON MS TREVI WAS ROCKANDROLL IT SURPRISES PEOPLE BUT I ONLY BEGAN TO LISTEN TO ROCK SERIOUSLY TOWARD THE END OF THE 1980S SHE SAYS WITH LA APERTURA FOREIGN RECORDS HAD BECOME AVAILABLE IMMEDIATELY UPON THEIR RELEASE THE LATEST ROCK VIDEOS WERE NOW PLAYING ON NEW MEXICAN CABLETV CHANNELS LONGSTANDING RESTRICTIONS ON CONCERTS BY FOREIGN ARTISTS WERE DROPPED AND BIG STARS BEGAN BOOKING DATES IN MEXICO DETERMINED TO BECOME A ROCK STAR HERSELF MS TREVI IN 1989 PERSUADED A MEXICAN LABEL TO RELEASE AN ALBUM OF SONGS SHE HAD WRITTEN AND RECORDED HER FIRST SINGLE DR PSIQUIATRA DR PSYCHIATRIST A PLAINT OF TEENAGE ANGST ROSE TO NO 1 ON THE CHARTS SEVEN DAYS AFTER ITS RELEASE TWO MORE HIT ALBUMS FOLLOWED WHICH INCLUDED EVERYTHING FROM LOVE BALLADS TO A MUSICAL SATIRE ON MEXICO'S OBSESSION WITH VIRGINITY THEN CAME A WILDLY SUCCESSFUL GLORIA TREVI CALENDAR AND TWO BLOCKBUSTER FILMS TO SEE MS TREVI IN CONCERT IS TO UNDERSTAND WHY SHE HAS EMERGED AS A RASPY AT TIMES RAUNCHY VOICE OF A NEW MEXICAN GENERATION EARLY IN THE SHOW MS TREVI WAILS OUT ONE OF HER BIGGEST HITS HOY ME IRE DE CASA TODAY I'LL RUN AWAY FROM HOME IT'S LIKE SHE WROTE THE SONG ABOUT ME SAYS TEENAGER ELENA SANTIAGO AS SHE MATCHES HER IDOL HIP THRUST FOR HIP THRUST MS SANTIAGO RECENTLY THOUGHT OF FLEEING HOME WHEN HER PARENTS INSISTED SHE PUT AWAY HER ROCK CASSETTES AND LISTEN TO TRADITIONAL ACCORDIONACCOMPANIED RANCHERA MUSIC AS USUAL THE HIGHLIGHT OF MS TREVI'S SHOW COMES WHEN THE SINGER PICKS OUT A YOUNG MAN FROM THE AUDIENCE PRODS HIM ONSTAGE AND CEREMONIOUSLY STRIPS HIM TO HIS SHORTS MS TREVI CALLS THE RITUAL THE REVENGE OF THE SUBMISSIVE MEXICAN WOMAN AGAINST MACHISMO ON THIS NIGHT THE YOUNG MAN WHO RECEIVES THE TREATMENT IS SEEMINGLY SO HUMILIATED THAT HE HOPS OFF STAGE WITH HIS TROUSERS HANGING AROUND HIS ANKLES IN THE CROWD MS SANTIAGO IS TRANSPORTED GLORIA IS SO MODERN SHE SAYS JUST LIKE THE WOMEN FROM THE UNITED STATES NO 9311160011 931116 DARTING FOR OBJECTS MR AGEMATSU CREATES SOME STRANGE OBJETS D'ART BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN YUJI AGEMATSU GOES FOR A STROLL IT'S GARBAGE IN ART OUT MR AGEMATSU PICKS UP BITS OF LINT FAKE FINGER NAILS DEAD INSECTS GRASS AND OLD TOY JACKS AND TURNS THEM INTO ART CALLED COLLECTION THE SERIES OF 360 SMALL CLEAR PLASTIC BAGS FILLED WITH TRASH IS NOW ON DISPLAY AT TZ' ART & CO IN THE SOHO DISTRICT OF MANHATTAN MR AGEMATSU'S MISSION BEGAN IN 1985 WHEN HE DREW INSPIRATION FROM REALLY ATTRACTIVE OBJECTS ON THE STREET COLLECTING TRASH HAS BEEN A PASSION EVER SINCE I USED TO COLLECT OBJECTS WHICH ARE EASY TO READ CRUSHED COKE CANS ANTIQUES I GRADUALLY STARTED TO COLLECT OBJECTS WITH NO MEANING HE SAYS MR AGEMATSU A NATIVE OF JAPAN WHO IS NOW A PARTTIME CLEANER IN ART GALLERIES IS AN EXTREMELY METICULOUS SCAVENGER ANNOTATING WHERE AND HOW HE FOUND HIS TREASURES HE KEEPS A TINY NEAT JOURNAL RECORDING THE READING ON HIS PEDOMETER WHEN HE FINDS AN OBJECT AND HE WRITES DOWN HIS DAILY ROUTE INCLUDING THE EXACT NUMBER OF STEPS HE HAS TAKEN MR AGEMATSU IS A LITTLE VAGUE ON WHAT HIS ART MEANS WE ARTISTS ARE NOT LOOKING FOR ANSWERS HE SAYS ANSWERS ARE NOT ALWAYS PRODUCING A LEAFLET AT THE EXHIBIT EXPLAINS THAT BY BRINGING THE TRASH PHENOMENON OF AN URBAN CITY THAT EXISTS OUTSIDE BACK INSIDE MY WORK PRESENTS TRASH AS A SPECIMEN AND A TEXT MR AGEMATSU AND MS TAYLOR ADMIT THAT THEY'RE AT A LOSS TO IDENTIFY SOME SPECIMENS ON DISPLAY GALLERY PATRONS CONCEDE THAT SOME OF THE MATERIAL LOOKS LIKE DIRT AND STUFF AND ROGER KIMBALL MANAGING EDITOR OF THE NEW CRITERION AND A CRITIC SAYS SUCH EXHIBITS ARE VERY COMMON THESE DAYS BUT ARE ART OF VERY SIMPLISTIC IDEAS NONETHELESS MR AGEMATSU ISN'T THE ONLY ARTIST WORKING AND WORKING PROFITABLY IN GARBAGE LAST WEEK AT SOTHEBY'S HOLDINGS INC AUCTION OF CONTEMPORARY ART IN NEW YORK TONY CRAGG'S CANOE AN ARRANGEMENT OF 80 FOUND PLASTIC OBJECTS DIRTY RED OR WHITE BOWLS TOY PHONES EMPTY DETERGENT BOTTLES BOWLING PINS AND BUCKETSSOLD FOR 23000 PROFITS OR NOT PICKING UP AS MR AGEMATSU REFERS TO HIS CALLING CAN BE PERILOUS WORK YOU HAVE TO BE REALLY QUICK HE SAYS MAKING A HUGE SWOOPING GESTURE TO THE GROUND YOU COULD GET HIT BY A CAR AND HE SAYS THERE'S ALWAYS SOMEBODY AROUND TO EXCLAIM THAT'S MINE THAT'S MINE 9311160010 931116 PRUDENTIAL SECURITIES TACTICS DRAW WARNING BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STATE SECURITIES REGULATORS HAVE WARNED PRUDENTIAL SECURITIES INC NOT TO PLAY HARDBALL WITH CUSTOMERS SEEKING REDRESS FROM SOURED LIMITEDPARTNERSHIP INVESTMENTS IDAHO SECURITIES COMMISSIONER WAYNE KLEIN RECENTLY NOTIFIED THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT THAT STATE SECURITIES REGULATORS WON'T TOLERATE ANY ATTEMPTS BY THE BROKERAGE FIRM TO STRONGARM INVESTORS OUT OF ARBITRATION OR LITIGATION AND INTO A REPARATIONS FUND SET UP LAST MONTH AS PART OF A PARTNERSHIP SETTLEMENT WITH THE GOVERNMENT THE NATION'S FOURTHLARGEST BROKERAGE FIRM AGREED TO PAY AT LEAST 330 MILLION IN RESTITUTION TO INVESTORS TO SETTLE FEDERAL AND STATE CHARGES OF IMPROPERLY SELLING MORE THAN 7 BILLION OF PARTNERSHIPS IN THE 1980S UNDER THE ACCORD INVESTORS CAN TAP INTO A REPARATIONS FUND EVEN IF THE TIME LIMIT HAS LAPSED TO FILE A LAWSUIT OR ARBITRATION CLAIM OUTSIDE THE SETTLEMENT PROCESS HOWEVER THE RESTITUTION FUND ENTITLES INVESTORS TO RECOVER ONLY COMPENSATORY DAMAGES COVERING THEIR LOSSES BUT NOT PUNITIVE DAMAGES OR ATTORNEYS' FEES THEY ARE TRYING TO FORCE COMPLAINANTS INTO THE SETTLEMENT PROCESS THAT REGULATORS SET UP AND TRYING TO PRECLUDE THEM FROM HAVING ARBITRATION HEARINGS OR TRIALS THAT HAD BEEN IN THE PLANNING STAGES FOR MONTHS CHARGES MR KLEIN WHO HEADED A MULTISTATE TASK FORCE INVESTIGATING THE BROKERAGE FIRM THIS VIOLATES THE LETTER AND CERTAINLY THE SPIRIT OF THE SETTLEMENT FOR INSTANCE PRUDENTIAL SECURITIES RECENTLY URGED THE NEW YORK STOCK EXCHANGE TO ADJOURN A PENDING ARBITRATION CASE FILED IN JUNE 1991 BY SOME INVESTORS CLAIMING THAT THE FIRM MISLED THEM INTO BUYING UNSUITABLE PARTNERSHIP INVESTMENTS THAT LATER SOURED IN A LETTER TO THE BIG BOARD DATED NOV 1 LAWYERS FOR PRUDENTIAL ARGUED THAT THE CASE SHOULD BE ADJOURNED SO THE INVESTORS CAN CONSIDER USING THE REGULATORYSANCTIONED REPARATIONS FUND ANY OBJECTION BY THESE CLAIMANTS TO AN ADJOURNMENT OF A FEW MONTHS SHOULD FALL ON DEAF EARS BECAUSE IN MANY INSTANCES THESE CLAIMANTS WAITED FIVE YEARS AFTER THE ALLEGED INFRACTIONS BEFORE FILING AN ARBITRATION CLAIM PRUDENTIAL SAID THE REGULATORYSPONSORED REPARATIONS PROCESS SEEKS TO MAXIMIZE THE EFFICIENCY AND FAIRNESS IN RESOLVING INVESTOR CLAIMS PRUDENTIAL SAID IN ITS LETTER THE PROCEDURE IS EXPRESSLY EXPEDITED' AND SEEKS TO MINIMIZE THE DELAY ASSOCIATED WITH DRAWNOUT COURT OR ARBITRATION PROCEEDINGS THIS ARGUMENT HAS A HOLLOW RING TO SOME PLAINTIFF ATTORNEYS THEY CONTEND THAT IT HAS BEEN PRUDENTIAL THAT HAS SOUGHT TO DELAY MANY PENDING ARBITRATION CLAIMS THROUGH MOTIONS AND OTHER MEANS THIS CASE HAS BEEN PENDING FOR TWO YEARS AND PRUDENTIAL HAS HAD MORE THAN ADEQUATE TIME TO MAKE A GOODFAITH SETTLEMENT OFFER SAYS J BOYD PAGE OF PAGE & BACEK AN ATLANTA LAW FIRM REPRESENTING THE CLAIMANTS IN THE BIG BOARD CASE TO ME IT'S A BLATANT ATTEMPT TO FURTHER DELAY ADDRESSING THE CASE MR PAGE CONTENDS HE SAYS PRUDENTIAL'S TACTICS APPEAR TO INDICATE THAT PRU BELIEVES IT WILL GET A BETTER DEAL IN THE REPARATIONS PROCESS THAN IN ARBITRATION UNDER THE REGULATORY ACCORD INVESTORS AREN'T OBLIGATED TO FILE A CLAIM TO THE RESTITUTION FUND THEY ARE FREE TO PURSUE THEIR CASES THROUGH THE COURTS OR ARBITRATION THOSE WHO ACCEPT PRUDENTIAL'S SETTLEMENT OFFER MUST SIGN A RELEASE PREVENTING THEM FROM TAKING OTHER LEGAL ACTION ON THE PARTNERSHIPS A PRUDENTIAL SECURITIES SPOKESMAN DENIES THE FIRM IS STRONGARMING INVESTORS HE POINTS TO THE REGULATORY SETTLEMENT AS EVIDENCE THAT THE COMPANY WANTS TO GET PAST ITS PROBLEMS IT HASN'T BEEN OUR INTENTION TO CHANNEL PEOPLE INTO THE FUND FROM ANY OTHER TYPE OF ARBITRATION THEY MIGHT BE INVOLVED IN HE SAYS THE SPOKESMAN ADDS THAT PRUDENTIAL IMMEDIATELY SENT A LETTER OF APOLOGY IN ANOTHER BIG BOARD CASE IN WHICH IT URGED AN INVESTOR TO CONSIDER TAPPING THE REPARATIONS FUND CONCEDING WE OVERSTEPPED OUR BOUNDS IN THIS ONE CASE MEANWHILE PRUDENTIAL IS CAUTIONING ITS LAWYERS NOT TO SHRUG OFF THE ALLEGATIONS PUT FORTH IN THE REGULATORY SETTLEMENT WHEN ARGUING ARBITRATION AND OTHER CASES IN A NOV 4 MEMO TO PRUDENTIAL'S INTERNAL AND OUTSIDE LAWYERS LOREN SCHECHTER PRUDENTIAL SECURITIES GENERAL COUNSEL SAID IT IS INCUMBENT UPON US IN DEALING WITH CLAIMS AGAINST THE FIRM WHETHER THEY BE IN LITIGATION ARBITRATION OR CLAIMS NEGOTIATION TO FOLLOW THE SPIRIT AS WELL AS THE LETTER OF OUR SETTLEMENT AGREEMENT FOR THEIR PART REGULATORS SAY THEY WANT TO ENSURE THAT PRUDENTIAL AFTER HAVING MISTREATED PARTNERSHIP INVESTORS IN THE 1980S IS TAKING STEPS TO MAKE SURE THEY WON'T BE ABUSED A SECOND TIME SAYS IDAHO'S MR KLEIN THE FIRM HAS HAD A SUFFICIENT WAKEUP CALL 9311160009 931116 NEW QVC BID IS REJECTED BY PARAMOUNT MOVE PRECEDES SHOWDOWN IN COURT CONCERNING ANTITAKEOVER DEFENSES BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC DIRECTORS REJECTED QVC NETWORK INC'S SWEETENED 107 BILLION OFFER ON THE EVE OF A CRUCIAL LEGAL SHOWDOWN THIS MORNING THAT PITS QVC AGAINST PARAMOUNT AND ITS CHOSEN MERGER PARTNER VIACOM INC MEANWHILE INVESTORS SOLD PARAMOUNT SHARES IN A PESSIMISTIC REACTION TO QVC'S HIGHER BUT CONDITIONAL OFFER THE HOMESHOPPING COMPANY HAS VOWED TO ABANDON ITS TWOSTEP 9001ASHARE OFFER FOR THE ENTERTAINMENT AND PUBLISHING CONCERN IF THE DELAWARE STATE COURTS DON'T THROW OUT ANTITAKEOVER DEFENSES ERECTED BY PARAMOUNT AND VIACOM A CABLETELEVISION COMPANY THOSE PROVISIONS WOULD REQUIRE QVC TO PAY VIACOM SOME 600 MILLION ON TOP OF QVC'S COST TO ACQUIRE PARAMOUNT IN ADDITION PARAMOUNT IS ARMED WITH A POISON PILL THAT MAKES AN UNWELCOME TAKEOVER PROHIBITIVELY EXPENSIVE LEGAL EXPERTS EXPECT THE DELAWARE CHANCERY COURT WHICH BEGINS HEARING THE CASE TODAY TO REJECT QVC'S CHALLENGE BUT EITHER BIDDER IS CERTAIN TO APPEAL A LOWERCOURT LOSS TO THE DELAWARE SUPREME COURT IMMEDIATELY ASKING THAT THE RIVAL TENDER OFFER BE HALTED UNTIL A DECISION IS MADE IN THE CASE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PARAMOUNT SHARES FELL 2875 OR 35 TO CLOSE AT 80125 BASED ON YESTERDAY'S MARKET CLOSINGS VIACOM'S TWOSTEP OFFER IS VALUED AT AN AVERAGE 8026 A SHARE OR A TOTAL OF 10 BILLION IN ITS OFFER VIACOM PROPOSED TO PAY 85 A SHARE IN CASH FOR 51 OF PARAMOUNT WHILE QVC PROPOSES TO PAY 5 MORE IN CASH FOR 51 OF PARAMOUNT BOTH WOULD PAY FOR THE REST WITH A PACKAGE OF SECURITIES IN SPURNING QVC'S REVISED OFFER PARAMOUNT DIRECTORS VIEWED IT AS TOO CONDITIONAL THE COMPANY SAID FOR EXAMPLE THE DIRECTORS ARGUED THAT QVC'S OFFER CONTINUES TO CONTAIN NUMEROUS LEGAL AND FINANCIAL CONTINGENCIES THEY RECOMMENDED THAT SHAREHOLDERS NOT TENDER THEIR SHARES TO QVC AT THE SAME TIME THEY REAFFIRMED THE STRATEGIC MERGER AGREEMENT WITH VIACOM AGAIN CALLING IT THE BEST FIT FOR PARAMOUNT AND IN THE BEST LONGTERM INTEREST OF SHAREHOLDERS A QVC SPOKESMAN CALLED THE DIRECTORS' ACTION CONSISTENT ANALYSTS YESTERDAY HOWEVER ALSO WERE FOCUSED ON THE CONDITIONS IN THE QVC OFFER PEOPLE ARE SPOOKED THAT QVC CHAIRMAN BARRY DILLER IS GOING TO WALK AWAY TODAY SAID ANALYST LISBETH BARRON ON SG WARBURG SECURITIES AND MAYBE PEOPLE WHO AREN'T SURE OF THE COURT OUTCOME ARE TAKING PROFITS NOW ALTHOUGH QVC SAID IT WOULD ABANDON THE BATTLE FOR PARAMOUNT IF IT LOSES IN COURT MS BARRON SAID SHE BELIEVES A PARTIAL VICTORY WOULD KEEP IT IN THE CONTEST IF THE LOCKUP AGREEMENT STAYS AND THE POISON PILL GOES I DON'T THINK THAT'S A DEAL BREAKER SHE SPECULATED I DON'T THINK DILLER WOULD HAVE GONE THROUGH ALL THIS TROUBLE TO DROP OUT UNDER THAT CIRCUMSTANCE IN ADDITION TO THE CONDITIONS QVC PLACED ON ITS REVISED BID INVESTORS APPARENTLY WERE DISAPPOINTED THAT QVC'S LATEST OFFER WASN'T HIGHER SPECULATED ANOTHER ANALYST EDWARD HATCH OF UBS SECURITIES PARAMOUNT'S STOCK WILL PROBABLY DRIFT UNTIL IT BECOMES CLEARER THAT QVC IS WILLING TO OFFER AN UNCONDITIONAL HIGHER BID HE SAID ON THE NASDAQ STOCK MARKET VIACOM CLASS A SHARES CLOSED AT 53125 DOWN 150 AND VIACOM CLASS B SHARES CLOSED AT 4550 DOWN 1375 QVC SHARES CLOSED AT 5175 UP 2125 SEPARATELY THE FEDERAL TRADE COMMISSION AS EXPECTED FORMALLY APPROVED A STAFF RECOMMENDATION THAT FORCES CABLETELEVISION GIANT TELECOMMUNICATIONS INC AND ITS LIBERTY MEDIA INC SPINOFF TO DIVEST THEMSELVES OF THEIR QVC HOLDINGS THE STAFF WAS CONCERNED THAT TCI'S ROLE IN QVC'S BID FOR PARAMOUNT VIOLATED ANTITRUST LAWS AND THE COMMISSIONERS AGREED IN A 5TO3 VOTE THE ACTION MARKS THE FIRST TIME IN MORE THAN A DECADE THAT THE FEDERAL GOVERNMENT HAS CHALLENGED A VERTICAL MERGER IN THIS CASE A DEAL INVOLVING A DISTRIBUTOR OF PROGRAMMING TCI AND A PRODUCER OF PROGRAMMING PARAMOUNT THIS IS ONE OF THE MOST SIGNIFICANT ANTITRUST INTERVENTIONS IN 15 YEARS SAID SEN HOWARD METZENBAUM D OHIO CHAIRMAN OF THE SENATE'S ANTITRUST SUBCOMMITTEE BUT FTC COMMISSIONER MARY AZCUENAGA OPPOSED THE MOVE WE LACK SUFFICIENT INFORMATION TO PREDICT WITH ANY CONFIDENCE THAT THE PROPOSED ACQUISITION IS LIKELY TO HAVE ANTICOMPETITIVE EFFECTS SHE SAID IN A DISSENTING OPINION BUT COMMISSIONER DENNIS YAO DISAGREED PROLONGING THE INVESTIGATION IS LIKELY TO HAVE CONSEQUENCES ON THE FREE PLAY OF MARKET FORCES HE SAID 9311160008 931116 BIRTHDAYS NOT ASSETS TIP OFF BANK MERGERS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL SEARCHING FOR THE NEXT BIG BANK MERGER FORGET ASSETS FORGET RETURN ON EQUITY FORGET EARNINGS JUST LOOK FOR AN AGING CHIEF EXECUTIVE OFFICER MORE SO THAN IN ANY OTHER INDUSTRY BANK EXECUTIVES HAVE WIDE LATITUDE TO CHOOSE WITH WHOM THEY WILL OR WON'T LINK UP REGULATORY ISSUES VIRTUALLY PRECLUDE HOSTILE TAKEOVERS AND BIG EGOS ARE A BAR TO MERGERS BETWEEN BANKS HEADED BY YOUNG AND AGGRESSIVE CHIEF EXECUTIVES THE RESULT HAS BEEN AN INCREASING NUMBER OF MERGERS BETWEEN BANKS IN WHICH AT LEAST ONE PARTNER IS HEADED BY A CHIEF EXECUTIVE DESTINED TO RETIRE SOON AND THERE PROBABLY ARE GOING TO BE MORE A COMPANY WITH A STRONG CHAIRMAN APPROACHING RETIREMENT AGE WITHOUT CLEARLY VISIBLE SUCCESSION POTENTIALLY CAN BE A CANDIDATE FOR A MERGER OR SALE SAYS JOHN LEONARD BANKING ANALYST AT SALOMON BROTHERS WHO EXAMINED RECENT MERGERS AND CONCLUDED THERE IS A CLEAR LINK BETWEEN MERGERS AND AGING EXECUTIVES OTHER BANK EXPERTS AGREE WHEN PEOPLE ASK US THE NEXT DEALS ONE OF THE THINGS WE LOOK AT IS THE CEO'S AGE SAID JAMES MARX EDITOR OF BANK MERGERS & ACQUISITIONS NEWSLETTER A LOT OF DEALS ESPECIALLY THRIFTS ARE BEING DONE BECAUSE MANAGERS WISH TO CASH OUT BEFORE RETIRING IN KEYCORP'S RECENT MERGER AGREEMENT WITH SOCIETY CORP KEYCORP CHAIRMAN VICTOR RILEY WHO IS 62 YEARS OLD HAD NO SUCCESSOR AND SOCIETY CHAIRMAN ROBERT GILLESPIE IS JUST 49 ALTHOUGH KEYCORP OFFICIALS CONCEDE THAT THE SUCCESSION ISSUE WAS ONE REASON THE MERGER WAS SOUGHT THEY DENY IT WAS THE DRIVING FORCE BEHIND THE LINKUP WITH SOCIETY AND THERE WERE OTHER POTENTIAL SUITORS JOHN MCCOY THE ACQUISITIVE CHAIRMAN OF BANC ONE CORP IN COLUMBUS OHIO WROTE MR RILEY EXPRESSING INTEREST IN A DEAL DURING THE KEYSOCIETY DISCUSSIONS BUT KEYCORP SHRUGGED OFF BANC ONE'S OFFER TO TALK THAT LIKELY WOULD HAVE MEANT AN ACQUISITION BY THE LARGER BANC ONE JUST BECAUSE VICTOR RILEY WAS NEARING RETIREMENT DOESN'T MEAN KEYCORP WAS SAYS LEE IRVING KEY'S TREASURER PENDING RETIREMENTS APPARENTLY HAVE CONTRIBUTED TO OTHER DEALS ANALYSTS POINT TO BOATMEN'S BANCSHARES INC'S PURCHASE OF SUNWEST FINANCIAL CORP FIRST BANK SYSTEM INC'S ACQUISITION OF COLORADO NATIONAL BANCSHARES AND A COUPLE OF RECENT ACQUISITIONS BY FIRST FIDELITY BANCORP AS EXAMPLES OF DEALS STRUCK IN PART BECAUSE OF THE AGE OF THE TARGET'S CHIEF EXECUTIVE THOSE BANKS EITHER WOULDN'T COMMENT OR DIDN'T RETURN CALLS BUT OTHER BANKERS CONCEDE THAT AGE IS A FACTOR IN DEALS IN THEORY IT SHOULD NOT BE A FACTOR SAYS RICHARD KOVASEVICH CHIEF EXECUTIVE OF NORWEST CORP MINNEAPOLIS BUT IN PRACTICE IT ABSOLUTELY DOES PLAY A ROLE AND BANC ONE'S MR MCCOY ACKNOWLEDGES THAT YOUNG BANK EXECUTIVES ARE LOATH TO GIVE UP THEIR POSITIONS IN A MERGER ONCE YOU HAVE THE GOLDEN RING IT'S HARD TO LET GO HE SAYS ADDING THAT THERE'S SO MUCH ENERGY WASTED ON THE POLITICS OF WHO'S GOING TO BE THE CHIEF EXECUTIVE OR CHIEF FINANCIAL OFFICER WHO GETS WHAT JOB AND IS IT FAIR ANALYSTS AND INVESTORS SAY FIRST CHICAGO CORP AND FIRST INTERSTATE BANCORP COULD BE CONSIDERED RETIREMENT PLAYS IN THE NEAR TERM AND THEY SUGGEST THAT IN A FEW YEARS BANK OF NEW YORK CO COULD BECOME A RETIREMENT PLAY HARRUMPH SAY THE BANKS HE'S NOT THAT OLD PROTESTS A SPOKESWOMAN FOR RICHARD THOMAS FIRST CHICAGO'S 62YEAROLD CHAIRMAN AND YESTERDAY'S ANNOUNCEMENT THAT MR THOMAS PICKED A PRESIDENT AND HEIR APPARENT REDUCES THE CHANCES OF A SUCCESSION PLAY A SPOKESMAN FOR EDWARD CARSON THE 63YEAROLD CHAIRMAN OF FIRST INTERSTATE POINTEDLY NOTES THAT THERE'S A LONG HISTORY OF INHOUSE SUCCESSION DITTO FOR BANK OF NEW YORK SAYS A SPOKESMAN FOR 60YEAROLD CHAIRMAN J CARTER BACOT LEST YOU TAKE ALL THIS TOO SERIOUSLY NOTE THAT PICKING THE NEXT BANK MERGER ON ANY BASIS ISN'T NECESSARILY A REWARDING PASTIME ALTHOUGH MANY BANKS' SHARES ALSO HAVE SLIPPED IN PRICE SINCE KEYCORP'S MERGER WITH SOCIETY WAS ANNOUNCED KEYCORP'S SHARES HAVE FALLEN 126 TO 3450 9311160007 931116 GONZALEZ'S DISPUTE WITH FED CHAIRMAN GATHERS MOMENTUM CONGRESSMAN GIVES GREENSPAN EXTENSION FOR TRANSCRIPTS SAYS HE HAS DETAILED NOTES BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONFRONTATION BETWEEN REP HENRY GONZALEZ AND THE FEDERAL RESERVE GREW MORE TENSE IN RESPONSE TO A LETTER FROM FED CHAIRMAN ALAN GREENSPAN THE TEXAS DEMOCRAT EXTENDED UNTIL TODAY THE DEADLINE FOR THE FED TO GIVE HIM UNEDITED TRANSCRIPTS OF MEETINGS OF THE FED'S POLICYMAKING FEDERAL OPEN MARKET COMMITTEE BUT MR GONZALEZ WHO HEADS THE HOUSE BANKING COMMITTEE DISCLOSED THAT HE HAS OBTAINED DETAILED NOTES OF AN OCT 15 CONFERENCE CALL AT WHICH FED OFFICIALS DISCUSSED IN MR GONZALEZ'S WORDS HOW TO EVADE FULL DISCLOSURE OF FOMC TRANSCRIPTS THE NOTES IF LEGITIMATE COULD HAVE COME ONLY FROM AN FED OFFICIAL OR STAFFER MR GONZALEZ'S STAFF REFUSED TO GIVE THE NOTES TO A REPORTER A FED SPOKESMAN HADN'T ANY COMMENT THE CONFERENCE CALL WAS HELD FOUR DAYS BEFORE 17 TOP FED OFFICIALS TESTIFIED BEFORE THE BANKING COMMITTEE AT THAT HEARING MR GREENSPAN DISCLOSED FOR THE FIRST TIME THAT THE FED HAD KEPT TRANSCRIPTS OF OPEN MARKET COMMITTEE MEETINGS GOING BACK TO 1976 IN AN EMBARRASSMENT FOR THE FED MR GONZALEZ SAID THE NOTES HE OBTAINED SUGGEST THAT DISPARAGING REFERENCES WERE MADE ABOUT A MEMBER OF THE BANKING COMMITTEE THOSE FAMILIAR WITH THE NOTES SAID THE TARGET WAS REP JIM LEACH OF IOWA THE COMMITTEE'S SENIOR REPUBLICAN WHOSE PUBLIC COMMENTS HAVE LENT SOME CREDIBILITY TO MR GONZALEZ'S QUEST MR GONZALEZ HAD DEMANDED THAT THE FED GIVE HIM THE TRANSCRIPTS BY YESTERDAY MR GREENSPAN REPLIED THAT HE WANTED FIRST TO CONSULT WITH THE OPEN MARKET COMMITTEE WHICH HAD PREVIOUSLY SCHEDULED A MEETING FOR TODAY IN A LETTER RELEASED BY MR GONZALEZ'S OFFICE YESTERDAY MR GREENSPAN SAID HE NOW EXPECTS THE MATERIAL TO BE DELIVERED THIS AFTERNOON GIVEN THE POWER OF A CONGRESSIONAL COMMITTEE TO ISSUE SUBPOENAS THE FED HAS LITTLE CHOICE BUT TO TURN OVER THE TRANSCRIPTS EVENTUALLY THE CONGRESSMAN SUGGESTED THAT THE FED RELEASE TO THE PUBLIC IN A FORTHRIGHT AND ORDERLY MANNER THE UNEDITED TRANSCRIPTS OF MEETINGS THAT TOOK PLACE MORE THAN THREE YEARS AGO AND THAT IT RELEASE EDITED VERSIONS OF MORE RECENT MEETINGS THE FED CURRENTLY RELEASES A SUMMARY OF ITS DELIBERATIONS WITH A SIXWEEK LAG BUT THAT SUMMARY DOESN'T RECORD WHO SAID WHAT AND HASN'T ANY VERBATIM QUOTATIONS 9311160006 931116 CREDIT RATINGS CABLEVISION INDUSTRIES CONTINENTAL CABLEVISION GET RATING UPGRADES NEW YORK STANDARD & POOR'S CORP RAISED DEBT RATINGS ON TWO CABLETELEVISION COMPANIES CITING IMPROVED CASH FLOW AND OTHER MEASURES AT CABLEVISION INDUSTRIES CORP AND CONTINENTAL CABLEVISION INC S&P RAISED ITS RATING ON SENIOR UNSECURED DEBT OF CABLEVISION INDUSTRIES LIBERTY NY TO DOUBLEBMINUS FROM SINGLEBPLUS ABOUT 500 MILLION OF DEBT IS AFFECTED S&P SAID THE UPGRADE REFLECTS CABLEVISION INDUSTRIES' GOOD SYSTEM PROFILE AND EXPECTATIONS FOR CONTINUING MODERATION IN THE COMPANY'S DEBT LEVERAGE THE COMMENT NOTED THAT GOOD OPERATING PERFORMANCE AND REFINANCING OF HIGHCOUPON DEBT HAS IMPROVED THE COMPANY'S INTEREST COVERAGE AND THE COMPANY'S CASH FLOW HAS BEEN IMPROVING DUE TO SUBSCRIBER GROWTH S&P RAISED THE SENIOR UNSECURED DEBT RATING OF CONTINENTAL CABLEVISION IN BOSTON TO DOUBLEB FROM DOUBLEBMINUS AND SUBORDINATED DEBT TO DOUBLEBMINUS FROM SINGLEBPLUS AFFECTING ABOUT 225 BILLION OF DEBT S&P NOTED IMPROVED CASH FLOW AND AN IMPROVED CAPITAL STRUCTURE THE COMPANY'S TECHNICALLY ADVANCED SYSTEMS AND LARGELY SUBURBAN FRANCHISE BASE GIVE IT A STRONG FOUNDATION TO TAKE ADVANTAGE OF NEW REVENUE OPPORTUNITIES THE ANALYSIS SAID 9311160005 931116 ECONOMY SALES OF NORTH AMERICANBUILT VEHICLES INCREASED STRONGLY IN EARLY NOVEMBER BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF NORTH AMERICANBUILT VEHICLES IN EARLY NOVEMBER WERE UP STRONGLY OVER THE YEAREARLIER PERIOD SUGGESTING THAT SALES COULD REMAIN BRISK THROUGH THE YEAR'S END NORTH AMERICANBUILT VEHICLES SOLD AT A SEASONALLY ADJUSTED ANNUAL RATE OF 124 MILLION VEHICLES IN THE NOV 1NOV 10 PERIOD THAT'S UP SHARPLY FROM THE 105 MILLION RATE A YEAR EARLIER BUT NOT QUITE AS STRONG AS THE 126 MILLION RATE OVER THE PAST 30 DAYS OVERALL 285758 CARS AND LIGHT TRUCKS WERE SOLD IN THE FIRST 10 DAYS OF NOVEMBER UP FROM 226008 VEHICLES A YEAR EARLIER THERE WERE NINE SELLING DAYS IN THE PERIOD THIS YEAR AND EIGHT A YEAR EARLIER BASED ON A DAILY SELLING RATE THE INCREASE WAS 124 THE SALES PICKUP WAS LED BY GENERAL MOTORS CORP WHERE A COMBINATION OF NEW MODELS AND LOW PRICES ON OLDER MODELS BOOSTED SALES 152 FORD'S SALES WERE UP 65 LARGELY BECAUSE OF CONTINUING STRONG SALES OF LIGHT TRUCKS PICKUPS MINIVANS AND SPORTUTILITY VEHICLES FORD'S NORTH AMERICANMADE TRUCK SALES WERE UP 124 FOR THE PERIOD CHRYSLER CORP WHICH HAS BEEN POSTING HEFTY SALES INCREASES FROM THE PAST YEAR SOLD ONLY 22 MORE VEHICLES THAN IT DID A YEAR EARLIER ACCORDING TO ESTIMATES BY WARD'S AUTOMOTIVE REPORTS CHRYSLER DOES NOT REPORT 10DAY SALES HONDA MOTOR CO WHICH IS STILL RAMPING UP OHIO PRODUCTION OF ITS REDESIGNED ACCORD SEDAN SAW A 3 SALES DECLINE FOR THE PERIOD BUT TOYOTA MOTOR CORP PUSHED BY STRONG SALES OF USBUILT COROLLAS AND PICKUPS REPORTED A 69 SALES INCREASE NISSAN MOTOR CO'S USBUILT VEHICLES WERE UP 10 ON THE STRENGTH OF ITS POPULAR ALTIMA AND COMPACT PICKUP MAZDA MOTOR CORP'S SALES OF USBUILT VEHICLES MORE THAN DOUBLED AND MITSUBISHI MOTORS CORP'S SALES MORE THAN TRIPLED NISSAN MAZDA AND MITSUBISHI ONLY REPORT SALES OF IMPORTS AT MONTH'S END 9311160004 931116 DREXEL SUCCESSOR FIRM HAS MORE ACTIVITY IN TALKS OF ITS SALE NEW YORK NEGOTIATIONS ARE HEATING UP IN THE SALE OF ONE OF WALL STREET'S MORE PROMINENT CORPORATE STEPCHILDREN NEW STREET CAPITAL CORP SUCCESSOR TO DREXEL BURNHAM LAMBERT INC NEW STREET SET UP IN APRIL 1992 TO MANAGE THE ASSETS OF BANKRUPT SECURITIES FIRM DREXEL ON BEHALF OF DREXEL'S CREDITORS IS UP FOR SALE AND PEOPLE CLOSE TO THE COMPANY SAY A SALE TO ANOTHER SECURITIES FIRM COULD TAKE PLACE BY YEAR END THE CLOSELY HELD FIRM MUST BY SOLD BY ITS PRINCIPAL SHAREHOLDER DBL LIQUIDATING TRUST BEFORE THE TRUST TERMINATES IN 1996 BUT AN EARLIER SALE WOULD CAPITALIZE ON THE CURRENTLY STRONG MARKETS FOR NEW STREET'S PRINCIPAL HOLDINGS JUNK BONDS AND STOCK JOHN SORTE PRESIDENT OF NEW STREET CAPITAL AND FORMER COHEAD OF CORPORATE FINANCE AT DREXEL DECLINED TO COMMENT ON THE TIMING OF A POSSIBLE SALE OR ON BIDDERS HE SAID THE TRUST HAD RETAINED INVESTMENT BANK LAZARD FRERES & CO TO LOOK INTO THE SALE OF NEW STREET CAPITAL AND THE PROCESS IS ONGOING NO DECISION HAS BEEN MADE NEW STREET CAPITAL'S STOCKHOLDER EQUITY GREW TO 617 MILLION IN THE QUARTER ENDED SEPT 30 FROM 547 MILLION AT YEAREND 1992 ACCORDING TO THE FIRM'S QUARTERLY FINANCIAL STATEMENTS RELEASED LAST FRIDAY NEW STREET CAPITAL IS THE LARGEST SINGLE HOLDER OF THE SHARES OF VALLEY FASHIONS CORP THE HOLDING COMPANY FOR A 95 STAKE OF WESTPOINT PEPPERELL INC A TEXTILE CONCERN IN WEST POINT GA NEW STREET HAS A 225 STAKE IN VALLEY FASHIONS NEW STREET HAS ABOUT 20 EMPLOYEES MOST OF WHOM WORKED AT DREXEL BEFORE IT PLED GUILTY TO VIOLATIONS OF SECURITIES LAWS AND BEFORE ITS BANKRUPTCY FILING IN FEBRUARY 1990 9311160003 931116 FEDERAL REGULATORS DRAFT NEW RULES FOR COMMUNITY INVESTMENT BY BANKS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL BANKING REGULATORS HAVE DRAFTED AN OUTLINE OF NEW COMMUNITYINVESTMENT RULES THAT WOULD PUSH BANKS TO EXPAND LENDING SERVICES AND INVESTMENT IN LOW AND MODERATEINCOME AREAS WORKING UNDER A DIRECTIVE FROM PRESIDENT CLINTON THE OFFICIALS ARE PUTTING THE FINISHING TOUCHES ON REGULATIONS DESIGNED TO REQUIRE FEDERALLY INSURED BANKS AND THRIFTS TO INCORPORATE LOW AND MODERATEINCOME NEIGHBORHOODS INTO THEIR SERVICE AREAS ONE GOAL IS TO BOOST BANK LENDING TO SMALL BUSINESSES WHAT WE HAVE IS A HIGHLY AGGRESSIVE PROPOSAL SAID FEDERAL RESERVE BOARD GOV LAWRENCE LINDSEY WHO HAS HELPED DRAFT THE RULES AMONG OTHER THINGS THE PLAN WOULD REQUIRE BANKS AND THRIFTS WITH MORE THAN 250 MILLION IN ASSETS TO CODE AND REPORT THEIR LOANS INCLUDING THOSE TO SMALL BUSINESSES BY THE GEOGRAPHICAL AREA IN WHICH THEY'RE MADE SO THAT REGULATORS CAN COMPARE LENDING RATES IN LOW AND HIGHERINCOME AREAS IT'S CERTAINLY POSSIBLE THAT THIS IS THE KIND OF THING THAT COULD BE A NIGHTMARE TO IMPLEMENT MR LINDSEY SAID AS REGULATORS WE HAVE A RESPONSIBILITY TO FOLLOW ITS IMPLEMENTATION VERY CAREFULLY FOR THE NEXT TWO YEARS THE RULES WHICH ARE BEING DRAFTED BY THE COMPTROLLER OF THE CURRENCY THE FED THE OFFICE OF THRIFT SUPERVISION AND THE FEDERAL DEPOSIT INSURANCE CORP ARE LIKELY TO BE PROPOSED FOR PUBLIC COMMENT EARLY NEXT MONTH THE NEW RULES WOULD BE ISSUED IN FINAL FORM NEXT SPRING OR SUMMER AND TAKE AFFECT ONE YEAR LATER THEY WOULD REPLACE THE CURRENT RULES IMPLEMENTING THE 1977 COMMUNITY REINVESTMENT ACT WHICH SAYS THAT FEDERALLY INSURED BANKS AND THRIFTS HAVE A CONTINUING AND AFFIRMATIVE OBLIGATION TO HELP MEET THE CREDIT NEEDS OF THE COMMUNITIES WHERE THEY OPERATE BUT BANKERS COMMUNITY GROUPS AND PRESIDENT CLINTON HAVE COMPLAINED THAT THE REINVESTMENT RULES GENERATE MOUNTAINS OF PAPERWORK WITHOUT NECESSARILY SPURRING LENDING FOR HOUSING NEIGHBORHOOD RECONSTRUCTION AND SMALLBUSINESS DEVELOPMENT THE NEW RULES WOULD PROVIDE FAR MORE SPECIFIC STANDARDS BASED ON EXPLICIT NUMERICAL COMPARISONS OF LENDING PATTERNS IN RICH AND POOR NEIGHBORHOODS FOR MEETING COMMUNITYREINVESTMENT GOALS THE GUIDING PRINCIPLE WILL BE WHETHER THE BANK OR THRIFT IS MAKING LOANS IN LOW AND MODERATE INCOME GEOGRAPHIES AND TO LOW AND MODERATE INCOME INDIVIDUALS AS WELL AS TO WEALTHIER GEOGRAPHIES AND INDIVIDUALS ACCORDING TO A DRAFT FACT SHEET ON THE RULES WHICH ARE STILL BEING WRITTEN REGULATORS SAY THEY EXPECT BANKERS WILL BE HAPPY WITH PARTS OF THE RULES THAT WOULD IMPOSE SIGNIFICANTLY LIGHTER DATAREPORTING REQUIREMENTS AND COMPLIANCE EXAMINATIONS ON SMALL BANKS TENTATIVELY DEFINED AS THOSE WITH ASSETS OF 250 MILLION OR LESS GIVE ALL BANKS A CLEARER IDEA OF THE PERFORMANCE THEY MUST ACHIEVE TO GET OUTSTANDING AND SATISFACTORY RATINGS CLARIFY HOW THE PROVISION OF SERVICES SUCH AS BRANCHES AUTOMATEDTELLER MACHINES AND CREDIT COUNSELING IN LOWINCOME AREAS AS WELL AS INVESTMENTS IN COMMUNITYDEVELOPMENT BANKS SMALLBUSINESSDEVELOPMENT SYNDICATES AND HOUSING PROGRAMS CAN SUPPLEMENT LENDING IN DETERMINING COMMUNITY REINVESTMENT ACT RATINGS OFFER BANKS THE OPTION OF WORKING WITH COMMUNITY GROUPS TO DRAFT THEIR OWN COMMUNITYLENDING GOALS ALONG WITH A PLAN FOR MEETING THEM BUT THE NEW RULES WOULD REQUIRE BANKS TO MAKE SIGNIFICANTLY MORE INFORMATION PUBLIC ABOUT THE PATTERN OF THEIR LENDING TO SMALL BUSINESSES AND MULTIFAMILYHOUSING CONSTRUCTION AND REHABILITATION THE NEW RULES WHICH WERE FIRST DESCRIBED IN THE AMERICAN BANKER ARE AN IMPORTANT PART OF MR CLINTON'S EFFORT TO EXPAND CREDIT AND BANKING SERVICES TO LOWINCOME AREAS 9311160002 931116 WHO'S NEWS PREMIER ANESTHESIA'S JACKSON TO BE CEO CHARGE SET FOR QUARTER ATLANTA PREMIER ANESTHESIA INC GRAPPLING WITH CHANGES IN THE HEALTHCARE MARKET SAID ITS CHAIRMAN WILL ASSUME THE POSITION OF CHIEF EXECUTIVE OFFICER SEPARATELY THE COMPANY SAID IT WILL TAKE A 12 MILLION PRETAX CHARGE TO FOURTHQUARTER EARNINGS THE CHARGE IS LINKED TO REDUCING THE SIZE OF THE CALIFORNIA OPERATIONS OF PREMIER'S NATIONAL PAIN INSTITUTE THE COMPANY'S PAINTREATMENT UNIT THE COMPANY SAID ITS CHAIRMAN RICHARD L JACKSON 39 YEARS OLD WOULD TAKE ON THE RESPONSIBILITY OF CHIEF EXECUTIVE FROM RICHARD D BALLARD 45 MR BALLARD WILL CONTINUE AS PREMIER'S PRESIDENT AND REFOCUS ON THE COMPANY'S CORE BUSINESS OF CONTRACTING OUT ANESTHESIOLOGISTS MR JACKSON SAID EARLIER THIS YEAR PREMIER DIVERSIFIED INTO SELLING ANESTHESIA EQUIPMENT AND CONTRACTING OUT PHYSICIANS AND RADIOLOGISTS MR JACKSON SAID THAT IF ANY OF THE NEW UNITS ARE NOT ADDING PROFITABILITY QUICKLY WE ANTICIPATE DIVESTING QUICKLY MR JACKSON SAID MR BALLARD WOULD REDIRECT THE COMPANY'S EFFORTS TO REFLECT THE COUNTRY'S CHANGING HEALTHCARE SYSTEMS WE HAVE TO REENGINEER THE COMPANY TO BE A LOWCOST PROVIDER MR JACKSON SAID PREMIER'S PERFORMANCE HAS SUFFERED THIS YEAR FOR THE FIRST NINE MONTHS IT REPORTED A LOSS OF 514000 OR SIX CENTS A SHARE THAT COMPARED WITH A YEAREARLIER PROFIT OF 16 MILLION OR 19 CENTS A SHARE ITS STOCK WHICH TRADED AS HIGH AS 1550 A SHARE IN JANUARY CLOSED YESTERDAY AT 475 UNCHANGED ON THE NASDAQ STOCK MARKET IN THE 1992 FOURTH QUARTER PREMIER REPORTED EARNINGS OF 976486 OR 11 CENTS A SHARE ON REVENUE OF 163 MILLION 9311160001 931116 TECHNOLOGY & HEALTH DEATHS SPUR TIGHTENING OF FDA DRUGTEST RULES WASHINGTON FOLLOWING FIVE DEATHS RELATED TO AN EXPERIMENTAL DRUG FOR HEPATITIS B AND THE VIRUS THAT CAUSES AIDS THE FOOD AND DRUG ADMINISTRATION SAID IT WILL IMPOSE NEW RULES REQUIRING MORE THOROUGH RESEARCH INTO SIDE EFFECTS OF EXPERIMENTAL DRUGS DATA FROM CLINICAL TRIALS MUST BE COLLECTED AND ANALYZED IN A MORE CUMULATIVE FASHION AND BE TREATED MORE SKEPTICALLY BY RESEARCHERS THE FDA SAID A REPORT FROM AN FDA TASK FORCE SAID DATA FROM THREE EARLIER CLINICAL TRIALS INVOLVING THE EXPERIMENTAL DRUG FIALURIDINE OR FIAU COULD HAVE RAISED QUESTIONS ABOUT SYMPTOMS EXPERIENCED BY THE PATIENTS IN THOSE STUDIES WHICH BEGAN IN 1989 THERE WERE SYMPTOMS OF LIVER DAMAGE IN 29 OF THE PATIENTS RECEIVING THE DRUG A FOURTH TRIAL BEGAN IN MARCH BUT WAS HALTED IN JUNE WHEN FIVE OF 15 PATIENTS DIED AFTER BEING ADMINISTERED THE DRUG IT CERTAINLY DEMANDED FURTHER STUDY SAID DAVID KESSLER FDA ADMINISTRATOR THE REPORT DOESN'T SAY THAT THE SYMPTOMS OF LIVER DAMAGE OR THE DEATHS WERE NECESSARILY PROVEN TO BE LINKED TO FIAU BUT IT CERTAINLY RAISED SUSPICIONS HE SAID 9311160063 931001 MOVIES DISNEY'S DREAM IS THAT ITS NIGHTMARE' WILL SCARE UP BIG BOXOFFICE BUSINESS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD FIRST THE LITTLE MERMAID MADE A BIG SPLASH NEXT AND BIGGER YET WAS BEAUTY AND THE BEAST AND LAST YEAR WALT DISNEY CO TOPPED ITSELF AGAIN WITH ALADDIN ANOTHER INSTANT ANIMATED SUCCESS NOW FOLLOWING THAT ENDEARING TRIO COMES THIS YEAR'S ANIMATED OFFERING A FILM SO DARK AND QUIRKY THAT IT DOESN'T QUALIFY FOR AN ALLAUDIENCES G RATING THAT IS THE CREATION OF TIM BURTON THE BATMAN DIRECTOR WHOSE PREVIOUS WORK FOR DISNEY INCLUDES FRANKENWEENIE A MACABRE BLACKANDWHITE SHORT ABOUT A DOG BROUGHT BACK FROM THE DEAD AND THAT USES AN ANIMATION TECHNIQUE THAT WAS LARGELY ABANDONED 30 YEARS AGO THE MOVIE IS THE NIGHTMARE BEFORE CHRISTMAS IF IT SOUNDS RISKY IT IS BUT IN A CALCULATED WAY HAVING RELEASED THREE ANIMATED BLOCKBUSTERS IN THE PAST FOUR YEARS DISNEY EXECUTIVES SENSE THAT AUDIENCES NEED A BREATHER FROM CLASSIC ANIMATION NIGHTMARE IS ALSO AN ANSWER TO SOME CRITICS WHO SAY THAT ALL DISNEY'S TRADITIONAL ANIMATED FILMS ARE BEGINNING TO SEEM THE SAME AND WHO CONTEND THAT AUDIENCE BURNOUT MAY NOT BE FAR OFF NIGHTMARE WHICH WILL HAVE ITS PREMIERE OCT 9 IN NEW YORK AND OPEN GRADUALLY ACROSS THE COUNTRY AFTER THAT DOESN'T LOOK LIKE DISNEY ANIMATION AND THAT'S THE POINT EVEN IF THE FILM DOESN'T DELIVER MEGAPROFITS DISNEY IS COUNTING ON IT TE THAT IT CAN ATTRACT TRENDY HIGHSCHOOL AND COLLEGE KIDS WHO READ MAGAZINES LIKE SPIN AND ROLLING STONE MOREOVER THE MOVIE SPEAKS TO THE ASPIRATIONS OF STUDIO BOSS JEFFREY KATZENBERG WHO AFTER SEEING HOWARDS END LAST YEAR SET OUT TO EMBRACE ART HOUSE FILMS NIGHTMARE ISN'T EXACTLY LIKE WATER FOR CHOCOLATE BUT DISNEY EXPECTS IT TO BE A CRITICAL SUCCESS AS THE STUDIO INCREASES PRODUCTION TO NEARLY 60 FILMS NEXT YEAR MOVIES LIKE NIGHTMARE MAY HELP TO CHANGE ITS REPUTATION AS A COOKIECUTTER MOVIE FACTORY NIGHTMARE IS ABOUT PUMPKIN KING JACK SKELLINGTON HIS GHOST DOG ZERO AND THE OTHER WEIRDOS THREE GHOULS ARE NAMED LOCK SHOCK AND BARREL WHO LIVE IN A PLACE CALLED HALLOWEENTOWN THE GHOULS FIND CHRISTMASTOWN KIDNAP SANTA CLAUS AND TAKE HIM TO A BIG MEANIE NAMED OOGIE BOOGIE WHO WANTS TO EAT HIM FOR DINNER THE MUSIC WAS WRITTEN BY DANNY ELFMAN THE LEAD SINGER OF ROCK GROUP OINGO BOINGO WHO ALSO COMPOSED THE MUSIC FOR THE BATMAN MOVIES THE MOVIE WASN'T DRAWN BY DISNEY'S ANIMATORS BUT INSTEAD WAS FILMED IN STOPMOTION ANIMATION A PAINSTAKING PROCESS IN WHICH STICK FIGURES AND PUPPETS ARE SLOWLY MOVED ABOUT ON SETS AND SHOT FRAME BY FRAME A TYPICAL BIT MIGHT TAKE ANIMATORS THREE DAYS TO SHOOT YET LAST ONLY ABOUT FIVE SECONDS ON SCREEN NIGHTMARE WHICH TOOK NEARLY THREE YEARS TO PRODUCE WILL BE RELEASED UNDER THE TOUCHSTONE PICTURES BANNER NOT THE FAMILYORIENTED WALT DISNEY PICTURES LOGO DISNEY SAYS THE FILM COST JUST OVER 20 MILLION TO PRODUCE FAR LESS THAN OTHER ANIMATED FILMS DISNEY EXECUTIVES BELIEVE THAT NIGHTMARE WILL PROVIDE THE PERFECT BREAK BEFORE THEY RAISE THE CURTAIN ON TWO NEW TRADITIONAL ANIMATED FILMS OVER THE NEXT TWO YEARS THE LION KING AND POCAHONTAS HAD IT OPENED LION KING THIS YEAR THE STUDIO WORRIED THAT THE PRESS WOULD YAWN IF IT REPEATED FOR A THIRD YEAR IN A ROW ITS ELABORATE PRESS CONFERENCES SHOWING OFF UNFINISHED SCENES FROM THE MOVIES DISNEY ALSO DIDN'T WANT TO PUT ITSELF IN THE NOWIN SITUATION WHERE AUDIENCES WOULD COME TO EXPECT AN ALADDINLIKE HIT EVERY CHRISTMAS THAT WOULD SET THE COMPANY UP FOR AN INEVITABLE FALL FURTHER ALADDIN HAS SOLD 300 MILLION OF TICKETS WORLDWIDE SO FAR AND IS STILL IN THEATERS AND ITS OFFICIAL RELEASE ON VIDEOCASSETTE TODAY WILL SURPRISE VIDEOINDUSTRY OBSERVERS ONLY IF IT DOESN'T SET A SALES RECORD WITH NIGHTMARE HOWEVER DISNEY FACES MAJOR MARKETING CHALLENGES THE MOVIE ISN'T FOR THE LITTLEST TYKES PARENTS MAY BE A TOUGH SELL WITH SOME TROUBLED BY THE TITLE OTHERS MAY REMEMBER MR BURTON AS THE DIRECTOR OF BATMAN RETURNS A MOVIE MANY PARENTS FELT WAS TOO SCARY FOR KIDS YET TRYING TO INTEREST OLDER CHILDREN AND YOUNG ADULTS IN ANIMATION IS A TRICKY TASK SO DISNEY HAS MOUNTED A SPLASHY CAMPAIGN TO STIR INTEREST IT CAMPAIGNED SUCCESSFULLY TO STAGE THE FILM'S PREMIERE AT THE PRESTIGIOUS NEW YORK FILM FESTIVAL BEHIND THE SCENES DISNEY'S MARKETING STAFFERS RECENTLY VISITED THEATERS NATIONWIDE TO PREPARE OWNERS TO PUSH THE MOVIE HARD LOCALLY IN EACH MAJOR CITY THE STUDIO MADE PRESENTATIONS TO THEATER MANAGERS ENCOURAGING THEM TO ENGAGE IN PROMOTIONS WITH NEIGHBORHOOD RETAILERS ONE WAY TO ATTRACT THE UNDER30 CROWD THEY ADVISED IS TO THROW AN OOGIE BOOGIE DANCE CONTEST DISNEY ALSO HAS FLOODED THEATERS WITH HALLOWEENMOTIF MATERIALS TO DECORATE THEIR LOBBIES BUT DISNEY NEVER A STUDIO TO ALIENATE POTENTIAL TICKET BUYERS HAS WARNED THEATERS NOT TO MAKE PROMOTIONS TOO SCARY A GUIDE RECOMMENDS BE SURE TO EMPHASIZE THE FUN SPOOKY SIDE OF HALLOWEEN IN YOUR DECORATIONS RATHER THAN THE MORBID SEE RELATED LETTER LETTERS TO THE EDITOR IF DISNEY GOES TRENDY IT'LL BE A NIGHTMARE WSJ NOV 16 1993 9310010145 YY93 MM11 9311160031 931021 LETTERS TO THE EDITORS AN UNFAIR DIG AT UMW WORKERS YOUR OCT 6 EDITORIAL SAN FRANCISCO'S NEW DEMOCRATS' CONTAINS ONE BRIEF PARAGRAPH CRITICIZING THE UNITED MINE WORKERS OF AMERICA THAT IS AMAZINGLY WRONG IT ASKS DOES ANYBODY KNOW THERE IS A COAL STRIKE GOING ON WHILE IT IS OBVIOUS YOUR EDITORIAL WRITERS KNOW PRECIOUS LITTLE ABOUT THE COAL STRIKE IT IS CERTAIN THAT THE TARGETED COAL COMPANIES AND THEIR SHAREHOLDERS ARE KEENLY AWARE THAT A STRIKE IS GOING ON COAL COMPANIES ARE LOSING TENS OF MILLIONS OF DOLLARS EVERY MONTH BECAUSE OF THEIR FAILURE TO PROVIDE UMWA MEMBERS WITH JOBS THEY HAVE EARNED ONE COMPANY ALONE HANSON HAS ESTIMATED LOSSES TO DATE FROM THE COAL STRIKE OF AS MUCH AS 169 MILLION YOUR WRITER WHO CALLS THE UMWA A GHETTO OF LOW PRODUCTIVITY CLEARLY HAS NOT DONE HIS RESEARCH IF HE HAD HE WOULD KNOW THAT A TOP ZEIGLER COAL EXECUTIVE HAS ADMITTED THAT UMWA MEMBERS ARE THE BEST MINERS IN THE WORLD AN OFFICIAL OF THE BITUMINOUS COAL OPERATORS ASSOCIATION HAS EVEN CONFESSED THAT NOBODY ON OUR SIDE QUARRELS WITH THE WORK ETHIC OF UNION MINERS STATISTICS SUPPORT THESE STATEMENTS ACCORDING TO THE LABOR DEPARTMENT 12 OF THE 20 MOST PRODUCTIVE MINES IN AMERICA ARE UMWA MINES UNION MINERS HAVE HELPED TURN AROUND THE COAL INDUSTRYTHEY'VE INCREASED PRODUCTIVITY 200 CUT COSTS AND MADE THE COAL COMPANIES HUNDREDS OF MILLIONS IN PROFITS SEE RELATED LETTER LETTERS TO THE EDITOR MINERS' PRODUCTIVITY WSJ NOV 16 1993 9310210111 YY93 MM11 9311160015 931028 POLITICS & PEOPLE CONGRESS VS THE FRAMERS AND REASON BY ALBERT R HUNT DESPITE TOUGH COMPETITION CONGRESS MAY BE ON THE VERGE OF ITS DUMBEST ACT IN YEARS MONKEYING WITH THE CONSTITUTION WHILE IGNORING THE FOUNDING FATHERS AS WELL AS CONTEMPORARY CONSTITUTIONAL SCHOLARS RANGING FROM LIBERAL ARCHIBALD COX TO CONSERVATIVE ROBERT BORK IN THE PROCESS LAWMAKERS WOULD DISPLAY THE RANKEST HYPOCRISY THIS REMARKABLE FEAT WOULD BE A CONSTITUTIONAL AMENDMENT TO MANDATE A BALANCED BUDGET THE ONLY EXCEPTIONS WOULD BE WAR OR IF A STATUTORY THREEFIFTHS OF THE TOTAL MEMBERS OF BOTH HOUSES VOTE FOR AN UNBALANCED BUDGET THE CHIEF SENATE SPONSOR PAUL SIMON D ILL SAYS HE HAS A COMMITMENT FROM THE LEADERSHIP THAT IT WILL COME UP WITHIN THE NEXT MONTH IN 1986 THE SENATE VOTED ON A SIMILAR MEASURE AND IT LOST BY ONE VOTE THE ENVIRONMENT IS MORE CONDUCIVE TODAY PRIVATE TALLIES SUGGEST SUPPORTERS ARE ONLY A HANDFUL AWAY FROM THE REQUIRED TWOTHIRDS SUPPORT IF IT PASSES THE SENATE FAVORABLE ACTION IS LIKELY IN THE HOUSE WHERE IT FELL NINE VOTES SHORT LAST YEAR A MARGIN MORE THAN OFFSET BY ELECTORAL CHANGES THE PROSPECT IS MINDBOGGLING THE SAME INSTITUTION THAT HAS APPROVED 26 TRILLION OF RED INK OVER THE PAST DOZEN YEARS NOW WANTS TO CURE THE PROBLEM BY AMENDING THE CONSTITUTION MANY SUPPORTERS CYNICALLY FIGURE THIS WILL DIVERT ATTENTION FROM THEIR COWARDICE IN TACKLING REAL BUDGETARY ISSUES AND PRIORITIES TO USE THE CONSTITUTION FOR SUCH A PURPOSE NOT ONLY TRIVIALIZES IT BY AN IRRELEVANCY BUT IN THE LONG RUN WOULD REDUCE THE RESPECT FOR AND THEREFORE THE EFFECTIVENESS OF OUR BULWARK OF LIBERTY CHARGES ARCHIBALD COX CHAIRMAN EMERITUS OF COMMON CAUSE AND THE FORMER US SOLICITOR GENERAL AND HARVARD LAW SCHOOL PROFESSOR EVEN IN THE SHORT RUN THE PEOPLE MAY BE MUCH SMARTER THAN THESE POLITICIANS THINK BY AN OVERWHELMING 77 TO 17 PEOPLE DON'T THINK A CONSTITUTIONAL AMENDMENT ACTUALLY WOULD PRODUCE A BALANCED BUDGET ACCORDING TO THIS WEEK'S WALL STREET JOURNAL/NBC NEWS NATIONAL SURVEY EXPERIENCE IS ON THEIR SIDE TAKE FOR EXAMPLE THE 65 MEMBERS OF THE HOUSE WHO THIS YEAR VOTED AGAINST BOTH THE CLINTON DEFICIT REDUCTION PLAN WITH MANY SAYING IT RELIED TOO MUCH ON TAX HIKES AND THE REPUBLICAN ALTERNATIVE WITH MANY SAYING IT CUT SPENDING TOO MUCH YET THESE 36 REPUBLICANS AND 29 DEMOCRATS ARE SPONSORING THE BALANCEDBUDGET AMENDMENT WE NEED THE FORCED DISCIPLINE OF A CONSTITUTIONAL AMENDMENT EXPLAINS REP SONNY CALLAHAN R ALA ONE OF THE 65 WHY DID HE VOTE AGAINST THE GOP BUDGETCUTTING PLAN MR CALLAHAN SAYS IT WAS TOO TOUGH ON MEDICARE AND OTHER SENSITIVE ENTITLEMENTS IN THE SENATE THE AMENDMENT'S PATRON SAINT PAUL SIMON LAST WEEK SENT A PRIVATE MEMO TO PRESIDENT CLINTON ADVOCATING AN EXPANSIVE NEW PROGRAM FOR THE INNER CITIES IT APPARENTLY IS INTERESTING AND MERITORIOUS IT ALSO IS TOTALLY AT ODDS WITH HIS AMENDMENT IT'S TOUGH TO FIGURE WHETHER THIS AMENDMENT WOULD DO MORE HARM ECONOMICALLY OR POLITICALLY EVEN MOST TRADITIONALLY CONSERVATIVE ECONOMISTS AGREE THAT TRYING TO BALANCE THE FEDERAL BUDGET IN RECESSIONARY TIMES IS CRAZY AND IN A WELLREASONED 25PAGE ANALYSIS ROBERT GREENSTEIN OF THE LIBERAL CENTER ON BUDGET AND POLICY PRIORITIES CONVINCINGLY ARGUES THAT UNDER A BALANCED BUDGET AMENDMENT WHICH COULD TAKE EFFECT BEFORE THE END OF THE DECADE THE POOR WOULD BEAR THE HEAVIEST SACRIFICES SINCE THEY ARE THE WEAKEST CONSTITUENCY BUT THE POLITICAL DAMAGE MIGHT BE EVEN GREATER SINCE A BALANCED BUDGET OFTEN WOULD BE POLITICALLY AND ECONOMICALLY DISASTROUS THE REAL ISSUE WOULD BE HOW TO GET A 60 VOTE FOR REVENUE AND SPENDING MEASURES IN BOTH HOUSES 401 OF THE MEMBERS WOULD HAVE AN EFFECTIVE VETO POWER THERE'S AN ILLUSTRATIVE MODEL CALIFORNIA WHERE A TWOTHIRDS LEGISLATIVE MAJORITY IS REQUIRED TO PASS A BUDGET THIS MINORITY RULE HAS HAD THE EFFECT OF DECREASING ACCOUNTABILITY INCREASING THE INFLUENCE OF SPECIAL INTERESTS AND CREATING A GENERAL CHAOS THAT HAS SERVED NEITHER THE POLITICIANS NOR THE PEOPLE WELL WHATEVER REFORMS ARE DESIRABLE FOR CONGRESS BECOMING MORE LIKE THE CALIFORNIA LEGISLATURE ISN'T ONE OF THEM THIS YEAR IT WOULD HAVE MEANT THAT PRESIDENT CLINTON NEVER WOULD HAVE GOTTEN A BUDGET THROUGH OR IT WOULD HAVE BEEN ONE ALMOST IDENTICAL TO THE LAST BUSH BUDGET AFTER VOTERS DEMANDED CHANGE THE EFFECT IN THE HOUSE AT LEAST WOULD BE TO GIVE NEWT GINGRICH VETO POWER OVER FISCAL POLICY SOUNDS PRETTY GOOD SOME CONSERVATIVES NO DOUBT ARE THINKING THINK HARDER THIS MINORITY RULE ALSO WOULD HAVE KILLED THE REAGAN TAX CUTS OF 1981 WHICH FELL 23 VOTES SHORT OF THREEFIFTHS OF THE HOUSE AND IF CONSERVATIVES REALLY BELIEVE THAT MR GINGRICH HAS A REAL SHOT TO BE SPEAKER BEFORE THE DECADE IS OUT HOW ABOUT LIBERAL DEMOCRATIC REP BARNEY FRANK EXERCISING A SIMILAR VETO POWER THIS IS A CONSERVATIVE MEASURE THAT CONSERVATIVES HAVEN'T THOUGHT ABOUT WORRIES ROBERT BORK IT WOULD CREATE A REAL MESS HE HIGHLIGHTS TWO LIKELY UNINTENDED CONSEQUENCES MORE REGULATION AND MORE POWER ACCRUING TO UNELECTED JUDGES CONGRESS ALMOST SURELY WOULD TRY TO GET AROUND ANY BINDING FISCAL RESTRAINTS BY ESCALATING REGULATORY MEASURES WHICH JUDGE BORK ARGUES COULD BE WORSE THAN TAXATION FROM A CONSERVATIVE POINT OF VIEW MOREOVER IF LAWMAKERS CIRCUMVENTED THE LIMITS SIMPLY BY ADOPTING WILDLY UNREALISTIC ESTIMATES THERE'S NO ENFORCEMENT MECHANISM THE RESULT THE COURTS WOULD GET DEEPLY INTO FISCAL POLICY WRITING ECONOMICS INTO THE CONSTITUTION AND REQUIRING A SUPERMAJORITY FOR IMPORTANT ACTIONS AREN'T NEW IDEAS IN THE FEDERALIST PAPERS NUMBER 58 JAMES MADISON CONSIDERED THE IDEA OF A SUPERMAJORITY AND PERSUASIVELY REJECTED IT THE FUNDAMENTAL PRINCIPLE OF FREE GOVERNMENT WOULD BE REVERSED IT WOULD BE NO LONGER THE MAJORITY THAT WOULD RULE THE POWER WOULD BE TRANSFERRED TO THE MINORITY OVER THE NEXT FEW WEEKS AS CONGRESS DECIDES WHETHER TO PROFOUNDLY CHANGE THE CONSTITUTION TAKE YOUR PICK JAMES MADISON OR SONNY CALLAHAN SEE RELATED LETTERS LETTERS TO THE EDITOR OSTRICH'S VIEW OF THE DEFICIT MONSTER WSJ NOV 16 1993 9310280009 YY93 MM11 9311150186 931115 GLOBAL VIEW YELTSIN GUIDES A NEW RUSSIAN EMPIRE INTO BEING BY GEORGE MELLOAN AFTER THE OLD SOVIET UNION CAME UNGLUED TWO YEARS AGO WRITER ZHORES MEDVEDEV OBSERVED THAT THE REMAINING RUSSIAN FEDERATION WAS SMALLER THAN WHEN PETER THE GREAT DIED IN 1725 IT WAS IN DANGER OF SHRINKING STILL FURTHER AS SOME OF THE 89 REPUBLICS AND REGIONS WITHIN THE FEDERATION THREATENED TO BREAK AWAY BUT TODAY RUSSIA SUDDENLY LOOKS LESS FEEBLE BORIS YELTSIN SUBDUED HIS DIEHARD COMMUNIST AND NATIONALIST RIVALS WITH HIS WHITE HOUSE SHOOTOUT SIX WEEKS AGO TO QUELL SIMILAR REBELLIOUSNESS IN REGIONAL SOVIETS HE IS PUTTING DISLOYAL POWER CENTERS UNDER ADMINISTRATIVE CONTROL PENDING FEDERAL AND LOWERLEVEL PARLIAMENTARY ELECTIONS NEXT MONTH A NEW CONSTITUTION MADE PUBLIC LAST WEEK WILL GO BEFORE VOTERS FOR APPROVAL AS WELL MOREOVER THE INCREDIBLE SHRINKING EMPIRE IS NO LONGER SHRIVELING IT IS AGAIN STRETCHING ITS TENTACLES INTO THE OTHER 14 INDEPENDENT REPUBLICS CREATED BY THE SOVIET BREAKUP THE COMMONWEALTH OF INDEPENDENT STATES CIS SET UP BY MR YELTSIN TWO YEARS AGO TO TOPPLE THE SOVIET UNION IS BEGINNING TO LOOK LIKE A REAL CONFEDERATION AFTER A PERIOD OF IRRELEVANCE UNDER ODD CIRCUMSTANCES ITS MEMBERSHIP HAS JUST EXPANDED PRODDED BY A NEED FOR RUSSIAN TROOPS TO PROTECT HIM FROM ABKHAZ REBELS THEMSELVES AIDED BY YET ANOTHER SET OF RUSSIAN TROOPS GEORGIA'S EDUARD SHEVARDNADZE HAS JUST SOUGHT THE SHELTER OF THE CIS FOR SIMILAR REASONS AZERBAIJAN HAS REJOINED UKRAINE IN SEVERE ECONOMIC STRAITS IS SEEKING A CLOSER ECONOMIC ALLIANCE WITH RUSSIA WITHIN THE CIS CONTEXT PRESIDENT KRAVCHUK AS EARNEST MONEY HAS OFFERED HIS HALF OF THE BLACK SEA FLEET TO RUSSIA IN EXCHANGE FOR DEBT RELIEF TAJIKISTAN'S BOSSES WELCOME RUSSIAN TROOPS TO HELP BATTLE ISLAMIC GUERRILLAS THE THREE BALTIC STATES HAVE NO INTENTION OF JOINING THE CIS BUT MR YELTSIN HAS WARNED ESTONIA TO BE MORE CONSIDERATE TOWARD ETHNIC RUSSIANS THREATENING INTERVENTION FOR WHATEVER REASONS ETHNIC RUSSIANS HAVE JUST DONE WELL IN LOCAL ELECTIONS IN ESTONIA PARTICULARLY IN THE CAPITAL TALINN ALTHOUGH MOST OF THE RUSSIAN TROOPS IN THE BALTIC STATES HAVE BEEN WITHDRAWN THERE IS NO HURRY TO RELIEVE THE BALTS OF THE REMAINDER OR THE NEARBY PRESENCE OF RUSSIAN FORCES THESE RENEWED IMPERIAL TENDENCIES WORRY THE WISEST US FOREIGN POLICY STRATEGISTS DISTRUST OF RUSSIA DIES HARD AND FOR GOOD REASON IT WAS RECENTLY DISCLOSED THAT THE SOVIET UNION HAD FAR MORE NUCLEAR WARHEADS THAN IT HAD ADMITTED MOST OF THEM ALONG WITH MISSILES TO LAUNCH THEM ARE OPERATIONAL THE PRESENCE OF RUSSIAN TROOPS IN GEORGIA MAY BE IN VIOLATION OF THE CONVENTIONAL FORCES AGREEMENT SIGNED BEFORE THE SOVIET COLLAPSE THE RUSSIAN MILITARY IS DEMORALIZED BUT ITS FIREPOWER REMAINS ENORMOUS AND ITS RELATIVE POWER WILL RISE AS IT REORGANIZES WHILE WESTERN NATIONS RAPIDLY DISARM THE KGB MADE UP OF HALF A MILLION INDIVIDUALS WHO SERVED AS THE SWORD AND SHIELD OF THE OLD SOVIET COMMUNIST PARTY IS ALIVE AND WELL ALTHOUGH IT NO LONGER SERVES THE PARTY FOR YEARS THE KGB USED A COMBINATION OF STRONGARM TACTICS HIGH PAY AND LAVISH PERQUISITES TO RECRUIT THE BEST AND BRIGHTEST OF SOVIET YOUTHS MANY OF THESE PEOPLE ALONG WITH LOWERLEVEL KGB THUGS HAVE TURNED TO LEGAL OR ILLEGAL PRIVATE SECTOR ACTIVITIES BUT MOST STILL ARE AT THE CENTER OF THE RUSSIAN POWER STRUCTURE SERVING IN A YELTSIN CREATION CALLED THE MINISTRY OF SECURITY ACCORDING TO AN EXHAUSTIVELY RESEARCHED ARTICLE BY VICTOR YASMANN IN THE NOV 5 RFE/RL RESEARCH REPORT IT WAS THIS ORGANIZATION AND THE TROOPS UNDER ITS EFFECTIVE CONTROL THAT PUT DOWN THE ARMED REBELLION AGAINST MR YELTSIN IN MOSCOW IN EARLY OCTOBER MR YASMANN BELIEVES THAT THE SECURITY SERVICE STILL MAINTAINS EFFECTIVE CONTROL OVER MOST OF THE ARMY JUST AS IT DID WHEN IT PROTECTED THE COMMUNIST PARTY AGAINST MILITARY ADVENTURISM WHAT THE FORMER KGB HAS BEEN UP TO ELSEWHERE IS PARTLY A MATTER FOR CONJECTURE CERTAINLY ITS GLOBAL SPY APPARATUS REMAINS INTACT AS TO ITS COVERT OPERATIONS THE EVENTS IN GEORGIA RECALL TO MIND THE OLD KGB TRICK OF STIRRING UP FIGHTING AND THEN SENDING IN RUSSIAN TROOPS OSTENSIBLY AS PEACEMAKERS TO PUT EVERYONE UNDER MOSCOW'S CONTROL IN A PATTERN SIMILAR TO THE ONE IN GEORGIA FORMER KGB AND POLITBURO HEAVY GAIDAR ALIEV OUSTED AN ELECTED PRESIDENT IN AZERBAIJAN CALLED FOR RUSSIAN HELP AGAINST ARMENIA AND TOOK THE COUNTRY BACK INTO THE CIS NEATLY WEANING IT AWAY FROM ITS FLIRTATIONS WITH TURKEY ALL THIS HAS AN OMINOUS SOUND BUT NOTHING IS SIMPLE IN TODAY'S RUSSIA AND ITS IMMEDIATE ENVIRONS THINGS MAY NOT BE AS BAD AS THEY LOOK THE SOVIET UNION IS GENUINELY DEAD MR YELTSIN IS PRIVATIZING THE ECONOMY INDEED DOING IT FASTER THAN THE OTHER CIS REPUBLICS ALSO RUN BY EXCOMMUNISTS THE NEW CONSTITUTION GUARANTEES THE RIGHT TO OWN LAND AND PRIVATE PROPERTY AND DETAILS A LIST OF PROTECTIONS FOR PRIVATE EXPRESSION AND HUMAN RIGHTS IT CALLS FOR A STRONG PRESIDENCY EVEN STRONGER THAN THE ONE CHARLES DE GAULLE DESIGNED FOR FRANCE YEARS AGO BUT RUSSIA MAY NEED A STRONG PRESIDENCY TO COUNTER THE CENTRIFUGAL FORCES THAT THREATEN TO TEAR IT APART IT IS USEFUL TO KEEP IN MIND AS WELL THAT IT WAS ALEXANDER RUTSKOI AND RUSLAN KHASBULATOV WHO LED THE FORCES OF REACTION THEY CLEARLY WANTED A RESTORED SOVIET EMPIRE WHEN THEY AND THEIR FOLLOWERS WERE PUT DOWN THE LEADERS OF THE OTHER INDEPENDENT REPUBLICS CHEERED MR YELTSIN KEEP IN MIND AS WELL THAT IN THE END THE EXKGB CROWD AT THE MINISTRY OF SECURITY BACKED MR YELTSIN NOT THE WOULDBE NEOIMPERIALISTS THE REASONS ARE NOT ENTIRELY CLEAR BUT AT LEAST IT HAPPENED MR YELTSIN MAY NOT BE IN THE CLEAR YET BUT HE IS ACTING LIKE A MAN WHO THINKS HE IS HE BRAZENLY WITHDREW HIS PROMISE TO STAND FOR ELECTION NEXT JUNE SAYING HE WOULD SERVE OUT HIS TERM ENDING IN 1995 HE CRACKED DOWN ON THE PROCOMMUNIST PRESS AND HE HAS BEGUN TO CRACK HEADS IN REGIONAL PARLIAMENTS THAT COMMUNISTS STILL DOMINATE IF HE CAN ESTABLISH A DEMOCRATIC FREE MARKET RUSSIAN FEDERATION A RUSSIANCENTERED CONFEDERATION WILL NOT BE ESPECIALLY WORRISOME THE OTHER REPUBLICS WILL HAVE GOOD REASON TO ADHERE TO RUSSIA MAINTAIN STRONG ECONOMIC TIES AND FOLLOW ITS EXAMPLE BETTER THAT A DEMOCRATIC RUSSIA TAKE THE RESPONSIBILITY FOR PEACE IN THAT VAST REGION THAN SOME OF THE ALTERNATIVES SUCH AS THE UN PEACEKEEPING FORCE BILL CLINTON HAS SUGGESTED YET AS MR MEDVEDEV SUGGESTED RUSSIA'S IMPERIAL TENDENCIES ARE NOT EASILY SUPPRESSED ITS MASTERS HAVE ALWAYS SOUGHT BETTER ACCESS TO THE BALTIC THE BLACK SEA AND WESTERN EUROPE MAYBE THE COLLAPSE OF THE SOVIET UNION ENDED THE AGE OF IMPERIALISM EVERYWHERE BUT WE ARE YET TO KNOW WHETHER THERE WILL SOMEDAY ALSO BE A BORIS THE GREAT 9311150185 931115 PROSECUTORS ARE EXAMINING INVOLVEMENT BY PRUDENTIAL INSURANCE ON PARTNERSHIPS BY MICHAEL SICONOLFI AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE US ATTORNEY'S OFFICE IN MANHATTAN IS INVESTIGATING THE INVOLVEMENT OF PRUDENTIAL INSURANCE CO OF AMERICA IN LIMITED PARTNERSHIPS MARKETED BY ITS PRUDENTIALBACHE SECURITIES BROKERAGE UNIT PEOPLE FAMILIAR WITH THE MATTER SAID THE INVESTIGATION OF PRUDENTIAL INSURANCE THE NATION'S LARGEST INSURANCE COMPANY IS PART OF A BROADER CRIMINAL PROBE LAUNCHED EARLIER THIS YEAR PROSECUTORS ARE TRYING TO DETERMINE WHETHER THERE WERE ANY ILLEGAL PAYMENTS MADE TO EMPLOYEES OF PRUBACHE BY ENTITIES INCLUDING GRAHAM ROYALTY LTD A COVINGTON LA OIL AND GAS COMPANY THAT ACTED ALONG WITH PRUBACHE AS THE GENERAL PARTNER OF THE ENERGY PARTNERSHIPS NOW PROSECUTORS ARE SCRUTINIZING WHAT KNOWLEDGE AND LIABILITY PARENT PRUDENTIAL HAD IN ANY POSSIBLE WRONGDOING ON THE DEALS THE PEOPLE SAID AS FAR AS WE KNOW THERE IS NO INVESTIGATION THAT WE'RE AWARE OF AND THERE ARE NO SUBPOENAS SAID A PRUDENTIAL SPOKESMAN THE FOCUS ON PRUDENTIAL INSURANCE'S ACTIVITIES IS A CONCRETE SIGN THAT THE BIG INSURER COULD ULTIMATELY BE DRAWN INTO THE PRUBACHE PARTNERSHIP MESS LAST MONTH PRUDENTIAL SECURITIES AS THE UNIT IS NOW KNOWN AGREED TO PAY AT LEAST 330 MILLION IN RESTITUTION TO SETTLE FEDERAL AND STATE CHARGES THAT IT IMPROPERLY SOLD MORE THAN 7 BILLION OF PARTNERSHIPS IN THE 1980S THE INVESTIGATION OF PRUDENTIAL COMES AS THE FIRM AND ITS BROKERAGE UNIT ALSO FACE THE POSSIBILITY OF BEING FORCED TO RESCIND THOUSANDS OF TRADES WITH CUSTOMERS BECAUSE SOME OF THE INSURER'S AGENTS SOLD PARTNERSHIPS AND OTHER INVESTMENTS WITHOUT PROPER BROKER LICENSES IN THE LATEST DEVELOPMENT PROSECUTORS ARE SAID TO BE EXAMINING PRUDENTIAL INSURANCE'S ROLE IN SOME OF THE BROKERAGE UNIT'S EARLIEST PARTNERSHIPS PRUDENTIAL INSURANCE PUT UP 10 OF THE PROCEEDS IN EACH OF THE FIRST THREE SERIES OF THE PRUBACHE/GRAHAM ENERGY PARTNERSHIPS BUT THE BIG INSURER WHOSE INVESTMENT PRESENCE WAS A MAJOR MARKETING TOOL IN THE PARTNERSHIPS ABRUPTLY STOPPED INVESTING IN THE DEALS AFTER THAT SAYING IT STEMMED FROM STATE REGULATORY CONCERNS YET AN EARLY 1986 DOCUMENT FROM MATTHEW CHANIN A SENIOR PRUDENTIAL INSURANCE EXECUTIVE SEEMED TO SUGGEST OTHER REASONS FOR PRU PULLING OUT OF THE DEALS WE OFFERED PRUBACHE THE SCALEBACK TO 2 OF THE PARTNERSHIP INVESTMENTS THEY DECLINED ON THE GROUNDS THAT THEY HAD AN EASIER STORY TO TELL IF WE DROPPED OUT ALTOGETHER MR CHANIN ADDED THEY FELT THAT A CUTBACK LOOKED LIKE A NEGATIVE VOTE ON THE PROGRAM A COMPLETE CESSATION COULD BE ASCRIBED TO SHIFTING INVESTMENT POLICY BY PRU WE WENT ALONG AND A 1986 INTERNAL PRUBACHE MEMO SUGGESTED THAT PRUDENTIAL INSURANCE BELIEVED THE PARTNERSHIPS WEREN'T A WISE INVESTMENT AMID MARKET INSTABILITY EVEN THOUGH THEY APPARENTLY WERE FINE FOR PRUBACHE'S CLIENTS TO BUY IN MATT CHANIN'S OPINION THERE IS ABSOLUTELY NO STABILITY IN THE OIL AND GAS MARKET NOW BECAUSE OF THIS UNCERTAINTY HIS GROUP AT PRUDENTIAL HAS REEVALUATED ITS POSITION VISAVIS OIL AND GAS INVESTMENTS THE MEMO SAID ANN MCDONALD AN ATTORNEY FOR PRUDENTIAL SECURITIES SAID THE MEMO REFERRING TO MR CHANIN'S THOUGHTS ON THE OIL AND GAS MARKET GIVES ONLY HALF THE STORY SHE SAID MR CHANIN WAS CONCERNED ABOUT VOLATILITY IN THE OIL MARKETS AT THE TIME BUT TWO MONTHS LATER IN MARCH 1986 PRUDENTIAL DECIDED IT WAS AGAIN APPROPRIATE TO INVEST IN THE PARTNERSHIPS WHICH IT DID UNTIL SEPTEMBER 1986 SHE SAID THEN TRIGGERED BY A CALIFORNIA INSURANCE REGULATION LIMITING INVESTMENTS THROUGH SUBSIDIARIES PRUDENTIAL STOPPED INVESTING IN OIL AND GAS THROUGH THE PARTNERSHIPS AND MADE ITS ENERGY INVESTMENTS DIRECTLY SHE CONTENDED THERE WAS NEVER A DECISION THAT THE FUNDS WERE GOOD ENOUGH FOR INVESTORS BUT NOT GOOD ENOUGH FOR PRUDENTIAL SHE SAID NEVERTHELESS PROSECUTORS ARE TRYING TO DETERMINE THE CIRCUMSTANCES SURROUNDING PRUDENTIAL INSURANCE'S DECISION TO PULL OUT OF THE PARTNERSHIPS AND WHETHER THE INSURER KNEW OF ANY WRONGDOING INVOLVING THE PARTNERSHIPS WHEN THEY PULLED OUT THE PEOPLE FAMILIAR WITH THE MATTER SAID KENNETH VIANALE AN ASSISTANT US ATTORNEY DECLINED TO COMMENT PRUDENTIAL SECURITIES HAS SAID THE INSURER'S DECISION TO PULL OUT HAD ABSOLUTELY NOTHING TO DO WITH ANY PERCEIVED WEAKNESS OR PROBLEM IN THE PARTNERSHIPS MEANTIME THE US ATTORNEY'S OFFICE IS INVESTIGATING A JOINT MARKETING VENTURE BETWEEN PRUDENTIAL INSURANCE AND ITS BROKERAGE UNIT THE PEOPLE FAMILIAR WITH THE SITUATION SAID THAT ASPECT OF THE CASE COMES AS MORE INFORMATION SURFACES ABOUT THE ROLE PRUDENTIAL INSURANCE AGENTS PLAYED IN SELLING PARTNERSHIPS ACCORDING TO A PRUDENTIAL SECURITIES INHOUSE PUBLICATION THE BROKERAGE FIRM INSTRUCTED ITS BROKERS HOW TO SHARE COMMISSIONS WITH PRUDENTIAL INSURANCE AGENTS WITHOUT VIOLATING STATE SECURITIES LAWS IN THE PUBLICATION MARKED FOR INTERNAL USE ONLY AND NOT FOR PUBLIC DISTRIBUTION PRUDENTIAL SECURITIES BROKERS ARE TOLD THEY COULD SHARE COMMISSIONS WITH INSURANCE AGENTS WHO LACKED THE PROPER SECURITIES LICENSE TO SELL LIMITED PARTNERSHIPS BY LABELING A TRADE AS A MUTUALFUND TRANSACTION OR SOME OTHER TRANSACTION THAT THE INSURANCE AGENTS WERE LICENSED TO SELL THE PROCEDURE WAS LATER CALLED INTO QUESTION BY THE SECURITIES DIVISION OF THE OREGON DEPARTMENT OF CONSUMER AFFAIRS PRUDENTIAL AGREED TO PUT AN END TO THE JOINT MARKETING PROGRAM UNDER PRESSURE FROM THE OREGON REGULATORS IN 1991 OREGON ARGUED THAT THE COMMISSIONSPLITTING ARRANGEMENT VIOLATED ITS LICENSING RULES A PRUDENTIAL SPOKESMAN SAID THE JOINTMARKETING PROGRAM WAS HALTED IN 1991 AFTER OREGON OBJECTED TO THE PRACTICE WE CEASED THE NATIONAL PROGRAM HE SAID 9311150184 931115 THE STAKES FOR MEXICO BY DAVID ASMAN MEXICO CITY IT'S NOT QUITE FRANKLY MY DEAR I DON'T GIVE A DAMN BUT MEXICAN OFFICIALS ARE TRYING TO PLAY DOWN THE EFFECTS OF A POSSIBLE NO VOTE WEDNESDAY BY THE US CONGRESS ON THE NORTH AMERICAN FREE TRADE AGREEMENT DESPITE THE MINISTER'S STOIC ATTITUDE NAFTA IS NOT SOMETHING MEXICO COULD EASILY WALK AWAY FROM THE MEXICAN ECONOMY HAS BEEN PRACTICALLY COMATOSE FOR A YEAR AS IT CONTINUES THE PAINFUL PROCESS OF TRANSITION FROM A PROTECTED ECONOMY INTO ONE THAT IS INTERNATIONALLY COMPETITIVE NAFTA WOULD PROVIDE THE NECESSARY KICKSTART IT'S STILL TRUE HOWEVER THAT WITH OR WITHOUT NAFTA MEXICO OFFERS INVESTORS SOME WONDERFUL BARGAINS AND WITH LOAN RATES IN MEXICO'S BARELY COMPETITIVE BANKING SECTOR AT ASTRONOMICAL LEVELS THERE'S A POTENTIAL SYNERGY BETWEEN CASHSTARVED RESTRUCTURED MEXICAN COMPANIES AND INTERNATIONAL INVESTORS LOOKING FOR A PLACE TO PARK FUNDS BUT WITH NAFTA HANGING IN THE BALANCE THESE INVESTMENT CHANNELS HAVE BEEN SHORTCIRCUITING SPARKS FLEW LAST TUESDAY WHEN THE CENTRAL BANK FORKED OVER 10 OF ITS 23 BILLION IN HARDCURRENCY RESERVES TO BUY UP MEXICAN PESO INSTRUMENTS AND PREVENT A RUN BY INTERNATIONAL INVESTORS HAD THERE BEEN A FULLBLOWN RUN ON THE PESO IT'S UNLIKELY THAT THE CENTRAL BANK COULD HAVE SPENT ALL THE RESERVES NECESSARY TO AVOID A DEVALUATION STILL THE PESO HELD AND PESO STABILITY REMAINS ONE OF THE CORNERSTONES OF PRESIDENT CARLOS SALINAS'S ECONOMIC AND POLITICAL RESTRUCTURING OF MEXICO THIS ENTIRE ADMINISTRATION IS ABOUT BUILDING TRUST THAT HAS BEEN LOST BY PAST ADMINISTRATIONS BREAKING CONTRACTS WITH SOCIETY SAYS EDUARDO MEDINA MORA A STRATEGIC PLANNER WITH THE DESC INDUSTRIAL GROUP AND THE MOST IMPORTANT CONTRACT IN THE ECONOMY IS THE CURRENCY WHEN THE GOVERNMENT BREAKS THAT CONTRACT THROUGH A DEVALUATION TRUST IS FINISHED THIS ADMINISTRATION WON'T DEVALUE INDEED AS THE 45YEAROLD PRESIDENT ENTERS THE LAST YEAR OF HIS WHIRLWIND SIXYEAR PRESIDENCY THE TRUST HE HAS ESTABLISHED BETWEEN THE GOVERNMENT AND THE BUSINESS COMMUNITY IS UNPARALLELED HIS POLICIES OF LOWERING TAX RATES LIMITING REGULATIONS OPENING MARKETS AND MAINTAINING CURRENCY STABILITY HAVE LED TO TREMENDOUS GROWTH AMONG MEXICO'S LARGE INDUSTRIAL GROUPS MANY OF WHICH NOW AVAIL THEMSELVES OF FOREIGN CAPITAL THROUGH DEBT AND EQUITY MARKETS HOWEVER THIS SAME ECONOMIC RESTRUCTURING HAS CAUSED A FAIR AMOUNT OF PAIN AMONG FORMERLY PROTECTED COMPANIES TOO SMALL TO BORROW ABROAD OR ISSUE STOCK AT HOME INSTEAD THEY HAVE BORROWED TO THE HILT FROM LOCAL BANKS WHILE MANY ARE NOW LEAN REEQUIPPED AND READY TO PRODUCE COMPETITIVELY THEY ARE LADEN WITH ENORMOUS DEBT LOADS AT INTEREST RATES MORE THAN THREE TIMES THE INFLATION RATE IF MEXICO'S GROSS NATIONAL PRODUCT WERE GROWING AT 4 OR 5 THE USUAL FORECAST ASSUMING PASSAGE OF NAFTA ENOUGH INCOME WOULD BE GENERATED FOR THEM TO PAY BACK THEIR LOANS INSTEAD THE ECONOMY IS GROWING AT 13 AND BUSINESSES ARE FACING BANKRUPTCY TYPICAL OF THOSE BUSINESSES ON THE LOW END OF THE SCALE CAUGHT IN THIS CRUNCH IS PEDRO LUNA'S CHAIN OF SMALL CONVENIENCE STORES IN NEZAHUALCOYATL A LOWINCOME SUBURB OF MEXICO CITY FOUR YEARS AGO THIS SELFMADE ENTREPRENEUR OWNED MORE THAN 200 WALKUP STORES SPECIALIZING IN LIQUOR AND TOBACCO PRODUCTS AS IMPORTS BEGAN FLOODING THE MARKET AND AS SHOPPERS ACQUIRED MORE DISPOSABLE INCOME MR LUNA REALIZED THERE WAS A MARKET FOR EXPANDED WALKTHROUGH STORES PATTERNED AFTER THE US 7ELEVEN STORES RENOVATING HIS SHOPS COST ABOUT 10000 EACH AND THE FINAL PRODUCTS AS CLEAN AND EFFICIENT AS ANY 7ELEVEN BECAME INSTANT HITS NOW HOWEVER MR LUNA IS BEING FORCED TO SELL OFF MANY OF HIS SHOPS TO PAY THE 37 INTEREST CHARGES ON THE LOANS HE TOOK OUT FOR RENOVATIONS SQUEEZING HIM FURTHER IS A 2 ASSETS TAX HE MUST PAY ON THE MONEY HE HAS BORROWED AND A 35 CAPITAL GAINS TAX HE NOW OWNS JUST 80 STORES AND HE THINKS HE'LL HAVE TO SELL OFF ANOTHER 50 IT'S A RACE AGAINST TIME AND I'M NOT SURE I'LL MAKE IT SAYS MR LUNA AND WHAT BOTHERS ME MOST IS THAT THE MARKET IS THERE AND I'VE GOT THE RIGHT PRODUCT AND MANAGEMENT HIGHER UP ON THE ECONOMIC CHAIN IS MIGUEL ANGEL GOMEZ'S INDUSTRIAL CARTON FACTORY IN AGUASCALIENTES ABOUT 300 MILES NORTH OF MEXICO CITY AFTER RETURNING TO MEXICO IN 1984 WITH AN MBA FROM MIT'S SLOAN SCHOOL OF MANAGEMENT MR GOMEZ PURCHASED A FAILING CARDBOARD CARTON COMPANY THAT HE SUSPECTED HE COULD TURN AROUND BY 1985 THE COMPANY WAS TURNING A PROFIT BY 1988 SALES WERE DOUBLE COSTS DEMAND OUTSTRIPPED SUPPLY AND MR GOMEZ WAS READY TO EXPAND A 12 MILLION LOAN WAS NEEDED TO BUY NEW MACHINERY THAT WOULD MAKE HIS THE BEST FACTORY OF ITS KIND IN ALL OF LATIN AMERICA AFTER A BYZANTINE ODYSSEY THROUGH THE JUSTPRIVATIZED BUT STILL HIGHLY BUREAUCRATIZED BANKING SYSTEM MR GOMEZ FINALLY RECEIVED HIS LOAN AND HIS NEW FACTORY WAS COMPLETED IN SEPTEMBER 1992 DEMAND IS STILL VERY STRONG BUT IT WILL BE AT LEAST TWO YEARS BEFORE HE BREAKS EVEN IN THE MEANTIME THE DELAYS HE SUFFERED IN GETTING THE LOANS AND THE EXTREMELY HIGH INTEREST RATES THREATEN THE FACTORY'S EXISTENCE WE'VE GOT CASH COMING IN BUT NOT ENOUGH TO COVER THE INTEREST PAYMENTS SAYS MR GOMEZ WE'VE BEEN FINANCING LONGTERM CREDIT OF 12 WITH SHORTTERM CREDIT OF 34 LIKE MR LUNA MR GOMEZ IS QUICK TO BLAME THE BANKS FOR HIS PROBLEMS SINCE THE GOVERNMENT SOLD OFF THE BANKS AT COSTS OFTEN FOUR TIMES BOOK VALUE THE NEW OWNERS HAVE PRESSURED THE GOVERNMENT TO KEEP COMPETITION TO A MINIMUM THERE ARE ONLY 18 PRIVATE BANKS IN THE MARKET ALTHOUGH THE GOVERNMENT PROMISES TO ALMOST DOUBLE THAT NUMBER BY THE END OF 1994 EVEN THAT'S NOT ENOUGH MR GOMEZ SAYS WHAT'S REALLY NEEDED ARE A FLOOD OF NEW FINANCIAL INSTRUMENTS TO FILL THE VACUUM THAT NOW EXISTS BETWEEN INTERNATIONAL INVESTORS AND VENTURES LIKE MINE DREAMING UP SUCH INSTRUMENTS IS THE JOB OF FAUSTO GARCIA LOPEZ A MEXICAN MERGERSANDACQUISITIONS SPECIALIST LOCATED JUST A FEW BLOCKS FROM MEXICO CITY'S STOCK MARKET HIS OWN COMPANY IS COMPLETING A JOINT VENTURE WITH A BRITISH INVESTMENT FIRM TO CREATE A MEXICO FUND THAT WOULD SPECIALIZE IN PROVIDING CAPITAL TO SMALLER VENTURES LIKE MR GOMEZ'S OF COURSE INTEREST IN THIS KIND OF VENTURE WOULD DIMINISH IF NAFTA IS NOT PASSED WARNS MR GARCIA NATURALLY THE BANKS ARE MORE THAN A BIT DEFENSIVE ON THE SUBJECT OF INTEREST RATES NEVERTHELESS MANY BANKERS ADMIT PRIVATELY THAT MISTAKES WERE MADE BY EAGER LOAN OFFICERS THE BANKS PUSHED TOO MANY CREDITS TO BAD RISKS SAYS THE CHIEF ECONOMIST OF ONE OF MEXICO'S LARGEST BANKS AS FOR INTEREST RATES I EXPECT THAT INTEREST RATES WILL GO DOWN TO 10 REAL RATE IF NAFTA IS APPROVED WHEN REMINDED THAT MR SALINAS JUST PROPOSED LOWERING BY TWOTHIRDS THE TAX RATES ON FOREIGN LOANS THE BANKER RESPONDS THIS MAY LOWER RATES A FEW BASIS POINTS BUT THE KEY HERE IS NOT SO MUCH COMPETITION ON RATES BUT THE CREATION OF MORE CAPITAL IN MEXICO THAT CAN ONLY BE DONE IF THE GOVERNMENT MAKES CAPITAL CREATION AND TRANSFER EASIER BY ELIMINATING THE CAPITAL GAINS TAX DESPITE ALL THE COMPLAINING WHAT IS REMARKABLE ABOUT TODAY'S MEXICO IS THAT IT'S HARD TO FIND ANYONE WHO DOESN'T AGREE WITH THE GENERAL DIRECTION OF CURRENT POLICY EVEN VETERAN ANTIPRI SOLDIERS HAVE COME IN FROM THE COLD WE HAVE SOME CONCERNS ABOUT POLICIES THAT HURT THE SMALL BUSINESSMAN BUT THEY ARE NOT ENOUGH TO DENOUNCE THE BASIC PROGRAM SAYS FRANCISCO BARRIO THE OPPOSITION NATIONAL ACTION PARTY GOVERNOR OF CHIHUAHUA THE PRIMARY REMAINING FLAW IS THAT THE PRI CONTINUES TO ACT AS A STATE PARTY WHILE SALINAS WAS ABLE TO MODIFY THIS HE DIDN'T HAVE ENOUGH TIME TO CHANGE IT COMPLETELY STILL HE CHANGED SO MANY THINGS IN SUCH A SHORT TIME PRESIDENT SALINAS HAS A NAME FOR HIS CHANGES FEDERALISM ONE CANNOT UNDERSTAND EITHER THE ECONOMIC OR THE POLITICAL CHANGES DURING MY PRESIDENCY WITHOUT UNDERSTANDING THE CHANGES IN THE DECISIONMAKING PROCESS TO ACTUALLY TRANSFER POWER AWAY FROM THE PRESIDENCY HE SAID DURING AN INTERVIEW AT LOS PINOS HIS OFFICIAL RESIDENCE ENACTING A LAW TO PROVIDE INDEPENDENCE FOR THE CENTRAL BANK WAS A CRITICAL PART OTHER EXAMPLES OF OUR NEW FEDERALISM HAVE BEEN THE DECENTRALIZATION PROCESS UNDER WAY IN EDUCATION AGRICULTURAL CHANGES THAT EMPOWER INDIVIDUAL LAND HOLDERS AND THE SOLIDARITY PROGRAM WHICH WAS DESIGNED TO EMPOWER POOR COMMUNITIES AND OF COURSE OUR POLITICAL REFORM WAS ALSO DESIGNED TO REMOVE THE FEDERAL GOVERNMENT FROM THE ROLE OF CONTROLLING STATES OR MUNICIPALITIES THIS IS ALL HAPPENING AS A PART OF ONE UNIFIED FRAMEWORK FROM THE LIFESTYLE OF PEDRO LUNA'S CUSTOMERS TO THE POLITICAL OPENNESS THAT LED TO FRANCISCO BARRIO'S ELECTION MEXICO HAS CHANGED ENORMOUSLY IN THE PAST FIVE YEARS THE POINT THAT'S HARD FOR MOST GRINGOS TO UNDERSTAND IS THAT EVEN THE MEXICANS LIVING IN THOSE SHACKS DISPLAYED IN PHOTOS BY ROSS PEROT LAST WEEK ARE FOR THE MOST PART BETTER OFF NOW THAN THEY USED TO BE AND THAT IS PRECISELY BECAUSE OF MEXICO'S WILLINGNESS TO OPEN ITS DOORS TO THE REST OF THE WORLD AND LIBERALIZE ITS ECONOMY INTERNALLY IF THE US HELPS OPEN THOSE DOORS FURTHER BY PASSING NAFTA THE LIVES OF MEXICANS WILL CONTINUE TO IMPROVE THEY KNOW IT WE KNOW IT AND BY NOW ROSS PEROT SHOULD KNOW IT TOO MR ASMAN EDITS THE JOURNAL'S AMERICAS COLUMN 9311150183 931115 BUSINESS BRIEF FORD FOLLOWING GM SWEETENS PAY BENEFITS OF SALARIED WORKERS DEARBORN MICH FORD MOTOR CO FOLLOWING IN THE FOOTSTEPS OF GENERAL MOTORS CORP SAID IT SWEETENED THE PAY AND BENEFITS FOR ITS 44000 WHITECOLLAR WORKERS FORD SAID SALARIED WORKERS WOULD RECEIVE AN AVERAGE OF 5 IN PAY AND MERIT PAY INCREASES NEXT YEAR FORD ALSO WILL GIVE EACH WORKER A 1600 FLEXIBLE COMPENSATION PAYMENT NEXT YEAR UP FROM 1000 THIS YEAR FORD ALSO IMPROVED ITS PENSIONS AND ADDED SOME NEW PAID HOLIDAYS TO MATCH THE THREEYEAR LABOR CONTRACT THAT THE COMPANY RECENTLY SIGNED WITH THE UNITED AUTO WORKERS UNION FOR ITS HOURLY WORKERS ON THURSDAY GM ANNOUNCED VIRTUALLY IDENTICAL IMPROVEMENTS IN ITS WHITECOLLAR COMPENSATION PROGRAM JACK HALL FORD'S VICE PRESIDENT OF EMPLOYEE RELATIONS SAID FORD WAS IMPROVING ITS COMPENSATION BECAUSE CONDITIONS IN THE AUTO INDUSTRY WERE BETTER AND BECAUSE FORD WANTS TO REMAIN COMPETITIVE WITH OTHER BIG COMPANIES MR HALL CHARACTERIZED THE ASSOCIATED COST INCREASES AS MODERATE IN ADDITION HE NOTED THAT FORD'S COST INCREASES IN EMPLOYEE HEALTH CARE HAD SLOWED THIS YEAR RISING 7 AFTER YEARS OF MUCH LARGER JUMPS MR HALL ADDED THAT IT WAS QUITE POSSIBLE THAT FORD EMPLOYEES WILL RECEIVE PROFITSHARING AS WELL THIS YEAR BUT HE SAID THAT WOULDN'T BE DETERMINED UNTIL THE END OF THE YEAR HE ALSO SAID THAT BONUSES FOR FORD'S TOP EXECUTIVES WERE POSSIBLE MEANWHILE THE INTERNATIONAL UNION OF ELECTRICAL WORKERS SAID IT SIGNED A THREEYEAR CONTRACT WITH GM THAT CLOSELY RESEMBLES THE THREEYEAR AGREEMENT GM RECENTLY SIGNED WITH THE UAW THE IUE REPRESENTS 22000 GM WORKERS 9311150182 931115 NEW ENGLAND ELECTRIC'S EMISSIONS PLAN SEEKS TO SURPASS INCREASING REGULATION BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON REFLECTING THE GROWING ENVIRONMENTAL AND COMPETITIVE PRESSURES FACING ELECTRIC UTILITIES NEW ENGLAND ELECTRIC SYSTEM UNVEILED A PLAN TO KEEP THE COMPANY A STEP AHEAD OF INCREASING REGULATION THE WESTBORO MASS UTILITY'S PROGRAM CALLS FOR A FASTER INTRODUCTION OF RENEWABLE POWER SOURCES HEAVIER EMPHASIS ON RECYCLING INCREASED CONSERVATION AND IMPLEMENTATION OF CONTROVERSIAL CARBONOFFSET PROGRAMS IN WHICH UTILITIES SUPPORT FOREST PRESERVATION IN OTHER PARTS OF THE WORLD TO OFFSET HARMFUL EMISSIONS IN THE US BUT PERHAPS THE MOST STARTLING ASPECT OF THE PLAN IS THE COMPANY'S DECISION TO DEEMPHASIZE ITS RELIANCE ON NATURAL GAS TO RESOLVE ENVIRONMENTAL ISSUES FOR REDUCING NITROGENOXIDE AND SULFURDIOXIDE EMISSIONS NATURAL GAS CAN BE TREMENDOUSLY BENEFICIAL BUT IN TERMS OF REDUCING CARBON DIOXIDE IT'S NOT THAT SIGNIFICANT IN THE LONG TERM SAID RICHARD P SERGEL VICE PRESIDENT AT NEW ENGLAND ELECTRIC THIS PLAN REALIZES THAT NATURAL GAS WON'T SOLVE THE PROBLEMS OF CARBON DIOXIDE EMISSIONS EVEN IF THAT'S ALL WE USED NEW ENGLAND ELECTRIC INTENDS TO REDUCE ITS CARBONDIOXIDE EMISSIONS TO 20 BELOW ITS 1990 LEVELS THIS COMPARES WITH THE CLINTON ADMINISTRATION'S REQUEST THAT ELECTRIC UTILITIES REDUCE CARBONDIOXIDE EMISSIONS TO 1990 LEVELS DESPITE PLANS FOR DEEMPHASIS NEW ENGLAND ELECTRIC WILL USE NATURAL GAS IN SHORTTERM EFFORTS THE BENEFIT OF BURNING NATURAL GAS INSTEAD OF OIL COAL OR FUEL OIL IS THAT IT CAN SIGNIFICANTLY REDUCE NITROGENOXIDE AND SULFURDIOXIDE EMISSIONS AS PART OF ITS CURRENT PLAN FOR INSTANCE NEW ENGLAND ELECTRIC PLANS TO REPOWER ITS 134MEGAWATT MANCHESTER STREET STATION TO BURN NATURAL GAS YEARROUND INSTEAD OF ONLY PART OF THE YEAR STILL ENVIRONMENTALISTS HAVE HAILED NEW ENGLAND ELECTRIC'S INITIATIVE SAYING IT WILL EXPAND DEBATE ON EMISSIONS THAT CAUSE THE GREENHOUSE EFFECT WITH THESE CLIMATE PRESSURES NOW FACING THE INDUSTRY TO HAVE A UTILITY STEP FORWARD WITH A PLAN THAT MENTIONS RENEWABLES AND ACKNOWLEDGES LONGTERM PROBLEMS WITH NATURAL GAS SENDS A GREAT MESSAGE SAID JOSEPH GOFFMAN A SENIOR ATTORNEY WITH THE ENVIRONMENTAL DEFENSE FUND THIS IS A KIND OF WAKEUP CALL THAT YOU CAN'T USE NATURAL GAS AS A MAGIC BULLET FOR ALLTIME OTHER UTILITIES HAVEN'T GRAPPLED DIRECTLY WITH THE CARBONDIOXIDE EMISSIONS PROBLEMS CONCERNING GAS THOUGH THE INDUSTRY CONTENDS THAT GAS REDUCES CARBONDIOXIDE EMISSIONS MORE THAN COAL DOES TO MEET ITS EMISSIONS GOALS NEW ENGLAND ELECTRIC INTENDS TO SPEED UP ITS RENEWABLEENERGY EFFORTS INCLUDING NEW PROGRAMS IN BIOMASS AND WINDPOWER BY 2000 THE COMPANY SAYS AT LEAST 58 OF ITS FUEL MIX WILL BE FROM RENEWABLE ENERGY RESOURCES IN 2012 IT EXPECTS THAT FIGURE TO BE NEARLY 10 NEW ENGLAND ELECTRIC SAYS ITS CONSERVATION EFFORTS WILL RESULT IN A 7 REDUCTION IN ITS POWER NEEDS BY 2000 IN ITS PLAN TO REDUCE CARBONDIOXIDE EMISSIONS THROUGH CARBON OFFSETS THE UTILITY ALREADY LAUNCHED A SMALL EFFORT IN MALAYSIA AND HOPES TO VALIDATE THE EFFECTIVENESS OF FOREST MANAGEMENT THROUGH RESEARCH SIMILAR PROGRAMS WERE SUGGESTED BY THE CLINTON ADMINISTRATION AND RECEIVED GRUDGING SUPPORT FROM SOME ENVIRONMENTAL GROUPS I THINK A LOT OF PEOPLE WOULD'VE LIKED A MORE AGGRESSIVE MANDATED APPROACH THAN OFFSETS TO REDUCING CARBONDIOXIDE EMISSIONS SAID MR GOFFMAN BUT THAT'S NOT WHAT WE HAVE ON THE TABLE RIGHT NOW RATHER THAN WRINGING OUR HANDS WE NEED TO MAKE SURE THAT OFFSETS ACTUALLY WORK NEW ENGLAND ELECTRIC ALSO SAID IT PLANS TO RECYCLE 100 OF ITS COAL ASH BY 2000 AND IMPLEMENT MORE AGGRESSIVE RECYCLING PROGRAMS TO REDUCE METHANE EMISSIONS FROM LANDFILLS MOREOVER THE COMPANY SAID IT WILL EXPLORE BURNING THE METHANE FROM LANDFILLS WHICH WOULD REDUCE THE GREENHOUSE IMPACT OF THE GAS FROM WASTE AREAS 9311150181 931115 GANTOS INC FILES FOR REORGANIZATION PLANS STORE CLOSINGS GRAND RAPIDS MICH GANTOS INC WHICH OPERATES 159 WOMEN'S SPORTWEAR STORES SAID IT FILED FOR REORGANIZATION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE GANTOS SAID THAT THE FILING WAS VOLUNTARY AND A COMPANY SPOKESMAN NOTED THAT THE COMPANY'S 1188 MILLION IN ASSETS EXCEEDED ITS 1149 MILLION IN LIABILITIES HOWEVER ANALYST PETER SCHAEFFER OF JOHNSON REDBOOK SERVICE SAID THAT WITHOUT THE CHAPTER 11 FILING GANTOS WOULD HAVE HAD TROUBLE GETTING CHRISTMAS MERCHANDISE FROM MANUFACTURERS THIS YEAR BECAUSE OF ITS FINANCIAL CONDITION FOR ITS SECOND QUARTER ENDED JULY 31 GANTOS REPORTED AN 8 MILLION LOSS ON SALES OF 57 MILLION COMPARED WITH A 366000 PROFIT ON SALES OF 628 MILLION IN THE YEAREARLIER QUARTER GANTOS WHICH EXPANDED RAPIDLY IN THE LATE 1980S SAID IT PLANNED TO CLOSE MANY STORES TO FOCUS ON APPROXIMATELY 105 OF ITS MOST PROFITABLE LOCATIONS THE CHAPTER 11 FILING SHOULD ALLOW THE COMPANY TO INEXPESIVELY DROP LEASES IN CLOSED STORES AND RENEGOTIATE LOWER LEASE PAYMENTS IN THE STORES IT KEEPS OPEN GANTOS CURRENTLY HAS STORES IN 25 STATES IN A STATEMENT GANTOS CHAIRMAN L DOUGLAS GANTOS SAID THE RESTRUCTURING WE ARE NOW UNDERTAKING IS A POSITIVE STEP DESIGNED TO ENABLE US TO FOCUS ON OUR CORE MARKET AND TO CLOSE CERTAIN STORES THAT HAVE NOT PERFORMED AS WELL AS WE WOULD HAVE LIKED HOWEVER GANTOS'S PROBLEMS GO DEEPER THAN MERELY HAVING TOO MANY STORES ACCORDING TO ANALYSTS IT'S BEEN REGARDED IN THE INDUSTRY AS A POORLY RUN COMPANY FOR ABOUT FIVE YEARS SAID JOHNSON REDBOOK'S MR SCHAEFFER HE SAID GANTOS HAD BEEN HURT BY NUMEROUS CHANGES IN BOTH MANAGEMENT AND DIRECTION DESPITE ITS PROBLEMS MR SCHAEFFER EXPECTS GANTOS TO SWIFTLY EMERGE FROM BANKRUPTCY PROTECTION GANTOS SAID IT ENTERED CHAPTER 11 WITH SUBSTANTIAL LIQUIDITY INCLUDING 9 MILLION IN CASH PLUS A COMMITMENT FROM ITS BANKS FOR A 15 MILLION LOAN GATOS CLOSED FRIDAY AT 350 DOWN 125 CENTS IN NASDAQ STOCK MARKET TRADING 9311150180 931115 WHO'S NEWS DIED JOHN H KREHBIEL SR 87 CHAIRMAN OF MOLEX INC A LISLE ILL MAKER OF ELECTRICAL CONNECTORS AFTER A BRIEF ILLNESS 9311150179 931115 LEISURE & ARTS ON DISK YOUNG JAZZISTS OL' BLUE EYES BY JIM FUSILLI THREE OF JAZZ'S YOUNG TRADITIONALISTS HAVE FINE NEW RECORDINGS ON THE LIVE SET OF KINDRED SOULS RCA/NOVUS BY THE ROY HARGROVE QUINTET PIANIST MARC CARY BASSIST RODNEY WHITAKER AND DRUMMER GREGORY HUTCHINSON CREATE A FORMIDABLE YET SUPPLE BACKDROP FOR TRUMPETER HARGROVE AND SAXOPHONIST RON BLAKE THE MUSICIANS BRIM WITH THE KIND OF CONFIDENT RESTRAINT THAT PERMITS THEM TO LET THE MUSIC DEVELOP HARGROVE HAS A BEAUTIFUL WARM TONE THAT HE DISPLAYS ON A MEDLEY OF THE STANDARDS EVERYTHING I HAVE IS YOURS AND DEDICATED TO YOU AND ON WHITAKER'S COMPOSITIONS LOVE'S LAMENT AND MOTHERED WHERE HE AND BLAKE TRADE TENDER LINES CREATING A LUXURIANT TENSION OVER CARY'S GLISSANDO NOT THAT THE QUINTET ISN'T UP TO MUSCULAR SWINGING AS ON HARGROVE'S HOMELIFE REVISITED BUT ON THIS RECORDING IT HAS CHOSEN TO RELAX AND PLAY SAXOPHONIST DON BRADEN HAS A SMOKY ABOUNDING SOUND THAT AT FIRST BRUSH WOULD SEEM BEST SUITED FOR ROMANTIC BALLADS AND WHILE WISH LIST CRISS CROSS BRADEN'S SECOND RECORDING AS A LEADER HAS ITS SHARE OF BEAUTIFUL BALLADS A SPLENDID RENDITION OF MCCOY TYNER'S SEARCH FOR PEACE FOR ONE IT IS UNISON PLAYING BY BRADEN'S SEXTET ON THE UPTEMPO NUMBERS THAT IS THE DISK'S MAIN DRAW FOR FIVE OF ITS EIGHT SONGS BRADEN GATHERED TOGETHER SOME OF JAZZ'S FINEST YOUNG PLAYERS TOM HARRELL ON TRUMPET STEVE TURRE ON TROMBONE BENNY GREEN ON PIANO CHRISTIAN MCBRIDE ON BASS AND CARL ALLEN ON DRUMS ON THE OPENING TRACK FATHER TIME A MODEST BURST OF GROWLING AND FLEXING GIVES WAY TO A LOOSELIMBED SWING IN WHICH THE THREE HORNS JOIN TOGETHER THUS SETTING THE TONE FOR A RECORDING IN WHICH THE ENSEMBLE IS STAR A SAVVY ARRANGER BRADEN IS ALSO A GENEROUS LEADER AND MEMBERS OF THE SEXTET HAVE PLENTY OF ROOM TO SOLO TO GREAT EFFECT TURRE ON FATHER TIME AND HARRELL ON JUST THE FACTS AND THE TITLE TRACK FOR EXAMPLE BUT IT'S WHEN THE GROUP COMES TOGETHER AS IN THE BRIGHT BLUES MR CMB AND ON THE BRIDGE OF WHEN YOU WISH UPON A STAR THAT BRADEN'S WISH LIST CRACKLES WISH WARNER BROS BY JOSHUA REDMAN IS JAZZ WITH A SMALL COMBO AT ITS BEST OF COURSE WHEN THE COMBO INCLUDES CHARLIE HADEN ON BASS THE GREAT BILLY HIGGINS ON DRUMS AND PAT METHENY ON GUITAR ALMOST ANY LEADER WOULD HAVE A HEAD START TOWARD A SUPERB RECORDING BUT IT'S REDMAN WHO MAKES THIS SESSION WORK FROM ORNETTE COLEMAN'S TRICKY BLUES TURNAROUND TO THE DISK'S TWO CONCLUDING SONGS RECORDED IN CONCERT REDMAN DISPLAYS A STYLE THAT IS RESPECTFUL OF THE TRADITION YET NOT OVERLY BOUND BY IT HIS PLAYING FREELY REVEALS HIS BLUES R&B AND OTHER INFLUENCES AS WELL AS HIS JAZZ ROOTS FOR EXAMPLE HIS COMPOSITION SOUL DANCE IS CENTERED BY METHENY'S LATININFLUENCED CHORDING AND HIS WONDERFULLY PACED RENDITION OF STEVIE WONDER'S MAKE SURE YOU'RE SURE COULD BE CALLED SOULFOLK FOR THE JAZZ PURIST THERE'S A DEFT RENDITION OF CHARLIE PARKER'S WITTY MOOSE THE MOOCHE AND ON REDMAN'S THE DESERVING MANY THERE'S SOME NEAT TRADING BETWEEN THE YOUNG TENORIST AND METHENY A TEPID READING OF ERIC CLAPTON'S TEARS IN HEAVEN DOESN'T COMPLETELY WORK YET THERE ARE DELIGHTFUL LITTLE TOUCHES IN IT THAT SHOW REDMAN'S SENSITIVITY THE LIVE NUMBERS THE TITLE TRACK AND HADEN'S JUMPING BLUES FOR PAT SHOW JUST HOW LIBERATED A PLAYER REDMAN IS ON DUETS CAPITOL FRANK SINATRA'S FIRST NEW RECORDING IN NINE YEARS THE LEGENDARY SINGER IS PAIRED WITH A DOZEN VOCALISTS EACH OF WHOM SURRENDERS TO HIS STYLE ON THIS PROJECT THAT'S NOT UNEXPECTED GIVEN THE SONG SELECTION SINATRA STANDARDS THE SIGNATURE ARRANGEMENTS AND MOST OBVIOUSLY THE FACT THAT GUESTS LIZA MINELLI CHARLES AZNAVOUR TONY BENNETT JULIO IGLESIAS NATALIE COLE AND BARBRA STREISAND CUSTOMARILY WORK IN A STYLE SINATRA VIRTUALLY INVENTED AS FOR THE VOCALISTS WHO COME OUT OF OTHER TRADITIONS LUTHER VANDROSS ANITA BAKER AND ARETHA FRANKLIN FROM GOSPEL AND SOUL BONO FROM ROCK CARLY SIMON AND GLORIA ESTEFAN FROM THEIR OWN HYBRID UNIVERSES THEY ARE CONFINED TO HIS FAMILIAR FORMAT AS WELL AND SINCE NONE OF THESE SINGERS SANG WITH THE ORCHESTRA AT THE SAME SESSION AS DID SINATRA THERE IS NO SPONTANEOUS INTERPLAY AND THUS NO CREATIVE TENSION SOMETIMES DUETS WORKS WELL AS IT IS THERE ARE SOME COMPELLING MOMENTS FRANKLIN'S INTRODUCTION TO WHAT NOW MY LOVE AND SINATRA'S TO GUESS I'LL HANG MY TEARS OUT TO DRY BAKER ON WITCHCRAFT AND BONO'S SCAT OVER THE INSTRUMENTAL BRIDGE ON I'VE GOT YOU UNDER MY SKIN SINATRA IS BRILLIANT ON A MEDLEY OF ALL THE WAY AND ONE FOR MY BABY THAT BEGS FOR PLAS JOHNSON ON TENOR SAX INSTEAD IT'S KENNY G ON WHEEDLING SOPRANO THE ARRANGEMENTS UNDER THE BATON OF PAT WILLIAMS ARE AS PERFECT AS THEY ARE TIMELESS AS FOR SINATRA WHILE THE VOICE ISN'T WHAT IT WAS 30 YEARS AGO HE CAN STILL SNEAK UP ON A LYRIC OR TURN A PHRASE INSIDE OUT LIKE NO ONE ELSE VS EPIC THE NEW DISK BY THE BAND PEARL JAM HAS EVERYTHING A HARDROCK RECORDING OUGHT TO WELLCRAFTED SONGS DELIVERED WITH FIRE AND FERVOR INVENTIVE OFTEN EXPLOSIVE SOLOING A POUNDING RHYTHM SECTION LYRICS WITH A POINT OF VIEW AND COMPELLING ALMOST OBSESSIVE SINGING IN THIS CASE BY EDDIE VEDDER A VOCALIST WITH NO SMALL AMOUNT OF PASSION AND VS HAS ANY NUMBER OF HIGH POINTS INCLUDING THE GRITTY CHORUS ON GO ITS OPENING TRACK THE WILD GUITAR ON BLOOD THE BELLOWING DRUM AND PULSING BASS OF WMA THE CONTROLLED INTENSITY OF VEDDER'S VOCAL ON REARVIEWMIRROR AND THE STARKNESS OF DAUGHTER A BALLAD THAT ERUPTS AFTER A FOLKLIKE BEGINNING THROUGHOUT GUITARISTS MIKE MCCREADY AND STONE GOSSARD PROVIDE A WALL OF SOUND MCCREADY MAY BE THE FINEST PROPONENT OF THE WAHWAH SINCE JIMI HENDRIX THE ORIGINAL SEATTLE GUITAR GOD SO EFFECTIVE SO BITING IS MCCREADY'S PLAYING THAT DESPITE VEDDER'S RAW VOCAL THE SONG ANIMAL MIGHT ACTUALLY HAVE WORKED AS AN INSTRUMENTAL DRUMMER DAVE ABBRUZZESE MAY NOT BE JOHN BONHAM BUT HIS PLAYING DRIVES HIS BAND IN MUCH THE SAME WAY THE LATE DRUMMER OF LED ZEPPELIN DROVE HIS 9311150178 931115 CREDIT MARKETS PRICE OF 30YEAR TREASURY RISES 3/4 POINT AS HIGHER YIELDS DRAW INVESTORS BACK TO MARKET BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS RETURNED TO THE BOND MARKET FRIDAY TAKING ADVANTAGE OF THE HIGHER YIELDS PRODUCED BY THE DOWNDRAFT OF THE LAST FEW WEEKS THEIR BUYING HELPED THE MARKET RECOVER FROM EARLY LOSSES POSTED ON MORE NEWS SHOWING STRONGER ECONOMIC GROWTH THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE 3/4 POINT OR 750 FOR A BOND WITH 1000 FACE VALUE TO 101 9/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE DROPPED TO 615 FROM 620 ON WEDNESDAY THE US BOND MARKET WAS CLOSED THURSDAY FOR THE VETERANS DAY HOLIDAY OTHER TREASURY MATURITIES POSTED GAINS WITH THE 10YEAR NOTE RISING MORE THAN 1/4 POINT TO 100 21/32 TO YIELD 564 FROM 569 ATTENTION IN THE CORPORATE BOND MARKET THIS WEEK WILL BE FOCUSED ON THE 135 BILLION OFFERING OF GLOBAL 10YEAR NOTES FROM KOREA ELECTRIC POWER CO THE NONCALLABLE NOTES ARE SLATED TO BE PRICED ON WEDNESDAY THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MUNICIPAL BOND MARKET PLAYERS WILL BE WATCHING PUERTO RICO WHICH MAY SEE BIG CHANGES BECAUSE OF YESTERDAY'S PLEBISCITE ON ITS POLITICAL STATUS AND REVISIONS IN IMPORTANT US CORPORATETAX LEGISLATION BUT MANY MUNICIPALBOND SPECIALISTS RECOMMEND A WAITANDSEE OUTLOOK FOR HOLDERS OF THE US COMMONWEALTH'S POPULAR DEBT ISSUES WHICH ARE EXEMPT FROM LOCAL STATE AND FEDERAL TAXES A VOTE FOR STATEHOOD WOULD MEAN BIG CHANGES IN PUERTO RICO'S ATTRACTIVE BUSINESS TAX EXEMPTIONS AND A BLOW TO PRICES OF ITS MUNICIPAL BONDS THE US TREASURY MARKET INITIALLY HEADED LOWER FRIDAY WITH SELLERS ENCOURAGED BY NEWS OF A STRONG 15 JUMP IN OCTOBER RETAIL SALES THE GAIN WAS STRONGER THAN MOST FORECASTS WHICH HAD CENTERED ON A 1 INCREASE BUT AFTER WEEKS OF SELLING THAT HAS TAKEN INTEREST RATES SHARPLY HIGHER ACROSS THE SPECTRUM OF TREASURY SECURITIES MANY INVESTORS DECIDED THERE WERE BARGAINS TO BE FOUND FRIDAY'S PERFORMANCE MAY SUGGEST THAT INVESTORS FEEL THE MARKET HAS ADEQUATELY ADJUSTED TO A FASTER RATE OF ECONOMIC GROWTH